2017-18 annual report 2017-18.pdfannualreportofapgcl2017-18 share capital : the authorized share...

ANNUALREPORTOFAPGCL2017-18

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INDAS FINANCIAL STATEMENT

2017-18

ASSAM POWER GENERATIONCORPORATION LIMITED


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ASSAMPOWERGENERATIONCORPORATIONLIMITED(A Govt. of Assam Undertaking)

[Registered office : Bijulee Bhawan, Paltan Bazar, Guwahati - 781001]

BOARD OF DIRECTOR�S

Shri Jishnu Barua, I.A.S. Chairman

Smt. K. Baruah Managing Director

Shri S. K. Sinha, I.A.S. Director

Shri P. Gupta, I.A.S. Director

Shri S. N. Kalita Director

Shri A. K. Mitra Director

Shri T. Nahardeka Director

Statutory Auditors : P. K. Sharma & AssociatesCharteredAccountantM. S. Road, Fancy BazarGuwahati - 7810001

Bankers : State Bank of India

Registered Office : Bijulee Bhawan3rd Floor, Paltan Bazar,Guwahati - 781001CIN: U40101AS2003SGC007239


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CONTENTS

SL. No. PARTICULARS PAGENO. (S)

1. Director�s Report 1-23

2. Comments of theCAG 24-26(Annexure - 3 to the Director�s Report)

3. Management reply to theComments ofCAG 27-28(Annexure - 4 to the Director�s Report)

4. Management�sReply to theAuditor�sReport 29-52(Annexure - 5 to the Director�s Report)

5. SecretarialAudit Report 53-56(Annexure - 6 to the Director�s Report)

6. AnnualReport onCSRActivities 57-58

7. AuditorsReport 59-82

8. Annual Statement ofAccounts

i) Balance Sheet as at 31st March, 2018 83

ii) Profit and LossAccounts for the year ended 8431st March, 2018

iii) Statement of Changes in Equity for theYear ended 8531st March, 2018

iv)CashFlowStatement 86-87

9. Notes to IndASFinancial Statements

i) SignificantAccounting Policies 88-100

ii) Notes (2 to 49) 101-129

10. Annexure -A(Operational Performance) 130


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DIRECTORS� REPORTTo,The Members,

Yours directors have the pleasure in placing before you the Fifteenth Annual Report together with theAudited Statements of Accounts and the Auditors Report of the Company for the year 2017-18.

Financial Highlights:

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Particulars

After approval of the Statements of Accounts for the financial year 2017-18 by the Board ofDirectors, the accounts were sent to the Statutory Auditors for their report thereon and thereafter to thePrincipal Accountants General of Assam for their comments thereon. The comments have alreadybeen furnished by the Comptroller &Auditor General of India on the stated accounts and therefore theyare being placed for consideration by the Board.

Major highlights/noteworthy achievements of the company during 2017-18:

Generation Target achievement.

AssamPower Generation Corporation LimitedRegisteredOffice: BijuleeBhawan, Paltanbazar,Guwahati-781 001,Assam

CIN:U40101AS2003SGC007239Tel.No.: 0361-2739502, Fax No.03612739546/22

e-mail:[email protected],Website: www.apgcl.org

2017-18 2016-17

NAME OF PLANT TARGET(MU) ACHIEVEMENT(MU)

Total Revenue 5,12,20,00,822.00 5,52,62,57,510.00Profit/(Loss) before Depreciation, Finance Cost,exceptional, extraordinary items & Taxes 1,39,09,88,957.00 1,30,00,69,459.00Depreciation 40,30,24,147.00 43,31,37,061.00Interest and Finance Charge 72,84,74,859.00 57,13,88,039.00Profit/(Loss) before exceptional items and tax 25,94,89,951.00 29,55,44,359.00Exceptional items 0.00 7,67,63,489.00Profit/(Loss) before tax 25,94,89,951.00 21,87,80,870.00

(In Rupees)

As per TariffOrder 2017-18

As per APR2017-18

Lakwa Thermal Power Station 904.41 725.92 663.401

Namrup Thermal Power Station 195.10 384.87 325.652

KLHEP 390.00 405.00 490.057

MSHEP 10.739


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Share Capital :

The Authorized Share Capital of the Company as on 31-Mar-2018 is Rs. 1,000 Crores divided in to10,00,00,000 Equity Shares of Rs. 100/- each. The Issued, Subscribed and Paid-up Share Capital ason 31-Mar-2018 stood at Rs.455,85,97,500.

During the year under review, the Company has not bought back any of its securities, nor issued anyshares as Sweat Equity or Bonus Shares or shares with differential voting rights nor granted any stockoptions.

Dividend :

During the year under review your directors express their inability to declare any dividend.

Industry overview :

The company is mainly responsible for maximum energy generation to meet up the energy demand inthe state.

Lakwa Thermal Power Station (127.2 MW)Lakwa Thermal Power Station comprises a total of seven nos of Gas Turbines and one no. Waste HeatRecovery Unit with a plant installed capacity of 157.2 MW. Out of the 7 GTUnits, Unit #1 & #4 (each unitof 15 MW Capacity) of LTPS has been decommissioned on 12/01/2017 & 08/09/2017 respectively. Themachines run on natural gas supplied from M/S O.N.G.C. & OIL. Presently, LTPS is generating with anaverage of 70-80 MW.

Namrup Thermal Power Station (99.5 MW)The Namrup Thermal Power Station comprises of six nos of units with an operational capacity of 119.5MW. Later, Unit No. #1 was decommissioned on 08/09/2017. The machines run on natural gas suppliedby M/S OIL. Presently, NTPS is generating with an average of 50-60 MW.

Karbi Langpi Hydro Electric Project (100 MW)The 2x50 MW Karbi Langpi Hydro Electric Project (KLHEP) is a run off the river project located in KarbiAnglong District ofAssam.At present KLHEP is running with 100MWat an average depending on wateravailability.

Myntriang Stage-II Small Hydro (2X1.5MW=3MW)

The 2X1.5 MW MSHEP is a located in Karbi Anglong District of Assam . At present MSHEP is runningwith 1.3-1.5 MW at an average depending on water availability.

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Operational performance of the company :

Name of Plant PLF % Availability Auxiliary Heat RateConsumption

Lakwa Thermal Power Station 54.31% 55.75% 8.1% 3506 Kcal/KWhNamrup Thermal Power Station 33.06% 33.41% 5.9% 4246 Kcal/KWhKarbi Langpi Hydro Electric Project 56% 92.61% 0.5%Myntriang Stage-II Small Hydro Electric 40.86% 47.57% 1.0%

Operation :The Company earned revenue amounting to Rs.4,90,96,98,701 /- on sale of power and incurredRs.2,31,96,15,632 /- on Fuel Cost during the financial year 2017-18. Gross Generation of the Company

was 1489.848 MU and sold 1414.548 MUof energy.

Fuel (gas etc.) :Total quantity consumed, NTPS=154.317MMSCM; LTPS= 250.91 MMSCM.

NTPS allotted Gas quantity fromOIL=0.66MMSCMD

LTPS allotted Gas quantity fromOIL=0.5 MMSCMD, GAIL=0.4 MMSCMD

New projects :

PROJECTS UNDER CONSTRUCTION & IMPLEMENTATION:i) Namrup Replacement Power Project (100 MW)

ii) Lakwa Replacement Power Project (70 MW)

iii) Myntriang Small Hydro Electric Projects (10.5 MW)(ST-I=3X3MW; ST-II=1X1.5MW)

PROJECTS UNDER PLANNINGi) Super Critical Margherita Thermal Power Project (2X800 MW Phase-I, Coal Based)

ii) Lower Kopili Hydro Electric Project (120 MW)

iii) Borpani Middle-II (3X8 = 24MW)

iv) Borpani Middle-I (3X7.5 = 22.5 MW)

OTHER PROJECTSi) Namrup Solar PV Project (15 MW)

ii) Amguri Solar Power Project (70 MW)


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R&M activity :Renovation and modernization of Power Stations are mainly aimed at reducing auxiliary power con-sumption and improving Plant Load Factors of generating units by sustaining an efficient and smoothoperation of plant.

R&M of Lakwa Thermal Power Station for FY: 2017-18: The R&M schemes of LTPS for the financialyear 2017-18 was approved at an estimated cost of Rs. 375.0 Lac under Annual Plan 2017-18. Thescheme was :

Sl. No. Electro-mechanical Works1 Procurement of field instruments of gas turbine units

2 Procurement of field instruments of gas compressors units

3 Procurement of spares for Gas Compressors & Air Compressors

4 Replacement of 132 KV and 33 KV Isolators for Ph-I Switchyard

5 Procurement of spares for GT Starting Diesel Engine of unit #2, #3, #5 & #6 .

6 Restoration of the ICCP system of 7.5 km, 12" dia. Natural Gas pipeline from GAIL Terminal

(Lakwa) to LTPS and other miscellaneous work.

7 Procurement of Air Filter for Gas Turbine of Phase-II.

8 Procurement of Cards and Modules of Speedtronic Mark-IV Gas Turbine Control Systems for

Phase-II units.

9 Upgradation of Present cooling system of starting diesel engine of GTUnits of Phase-II, LTPS.

10 Procurement of 1(one) no. New pump motor set for water intake along with pipes, valves,cables etc.

11 Procurement and upgradation of 1 (one) no. Speedtronic Mark-IV control system to Mark-VI e

Control Sustem at GT Unit-5.

R&M of Namrup Thermal Power Station for FY: 2017-18: The R&M schemes of NTPS for thefinancial year 2017-18 was approved at an estimated cost of Rs. 43.71 Lac underAnnual Plan 2017-18.The schemes were :

Sl. No. Electro-mechanical Works1 Replacement of existing (3200 metre) 11 KV PILC single core aluminium cable from generator

terminal to 11KV Unit Transformer of Waste Heat Steam Turbine Unit-6 with 425mm2 XLPE

aluminium cable along with terminal joints.

2 Procurement of 2.5 mm² single stranded 4 core (2000 mtr.) and 14 core (1500 mtr.) armoured

copper control cable for switchyard


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R&M of Karbi Langpi Hydro Electric Project For FY 2017-18: The proposed R&M scheme of KLHEPfor the financial year 2017-18 at an estimated cost of Rs 279.86 Lac approved under Annual Plan 2017-18. The scheme comprises of :

A Electro-mechanical Works1 Procurement of 220 V, 400AH Battery Bank with suitable battery charger.

2 Procurement of spares for Main Inlet Valve (MIV) of hydro turbine at KLHEP.

3 Procurement of 220 KV, 2000 Amps single pole SF6 Circuit Breaker 1set with accessories

excluding commissioning extra.

4 Supply, erection, testing and commissioning of hand operated travelling crane with load

capacity 10 MT

5 Repairing, testing and commissioning of 2 nos. Of Butterfly valves and Hydraulic pressure at

valve house of 2 x 50 MW KLHEP.

6 Replacement of existing illumination system (CFL/HPLV etc.) at KLHEP Power House withLED lighting.

R&M under Ongoing Schemes of NTPS for FY 2017-18:

Construction of a new water intake pumphouse at Dilli river for consumptive waterrequirement of existing plant and NamrupReplacement Project. (Total cost of thework is Rs. 22.0 Crore, out of whichRs.5.0 Cr & 3.0 Cr already received in2013-14 & 2015-16 respectively and another Rs.8.0 Cr is proposed in 17-18).

a) Construction of a new waterintake pump house at Dilli Riverfor consumptive water require-ment of existing plant andNamrup Replacement Project.Rs. 460.00 Lakh

b)Restoration ofGasCompressorUnit no.9 at Lakwa ThermalPower Station. Rs.340.00 Lakh

Name of Schemes

(460.00 +340.00)= 800.00

Budget Proposal(Rs. in Lac)

R&M under HYDRO works (For FY 2017-18): The proposed R&M scheme under Hydro & Civil worksfor the financial year 2017-18 at an estimated cost of Rs 627.0 Lac approved under Annual Plan 017-18. The scheme comprises of :

Sl. No. Civil Works of LTPS1 Development of the backyard of the compressor building and both gas terminals.

2 Residential quarters and power House buildings repairing and maintenance.

3 Repairing of a part of road inside colony & construction of road along Power Plant boundarywall.

4 Construction of boundary wall around the DTWS pump house and repairing of part of boundarywall around power Plant area and residential area.


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5 Development of administrative building approach and car parking area in the space availablein front of new GM office.

6 Construction of Master Drain

7 Installation of Deep tube well by Rotary Rig and procurement of all required materials

B Civil Works of NTPS1 Construction of colony drains

2 Development of colony roads

3 Development of GM office Building

4 Repairing of roof and roof painting of residential and non-residential building Ph-I

5 Development of Power House and its complex

6 Protection works for Dillighat Intake site

C Civil Works of KLHEP1 Spares for Hydraulic Gates and Auxiliary Equipments

2 Arresting water leakage in Power House and Roof treatment of Power House Building wall byproviding water proofing treatment of Generator floor Western & Northern side (70.00 M to81.20M).

3 Protection works at Dam site including construction of masonry drain, boulder pitching, geojuteapplication etc. near Hatidubi Dam.

4 Repair and maintenance works of Civil structure of Karbi Langpi H.E. Project.

5 Water Proof Electrification of Dam Gallery

Project Finance :� NRPP- Equity from GoA- Rs.208.89 Cr., Loan from PFCL- Rs. 485 Cr.

Total Project including IDC= Rs. 693.73

� LRPP- Equity from GoA 28.92 Cr., Loan from ADB- Rs. 233.10 Cr.

Total Project Cost Rs.262.02 Cr.

Environment, safety & training :

All requisite environment, safety & training have been ensured on an ongoing process. Conservation ofEnergy, TechnologyAbsorption and Foreign Exchange Earnings & Outgo:The information pertaining toConservation of Energy, Technology Absorption and Foreign Exchange Earnings & Outgo as requiredunder Section 134(3)(m) of the CompaniesAct, 2013 read with Rule-8(3) of the Companies (Accounts)Rules, 2014 is furnished in Annexure-1 and attached to and forming part of this Report.

Directors and Key Managerial Personnel:Since the last Financial Year 2016-17, the changes among the Directors and Key Managerial Personnelare as under:


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I. Shri Alok Kumar was appointed as Director with effect from 22.06.2017.II. Shri Rajiv Kumar Bora ceased to be a Director w.e.f. 22.06.2017.III. Shri Ravi Capoor ceased to be a Director with effect from 16.06.2017.IV. Shri Ravi Kota was appointed as Director with effect from 19.05.2017.V. Shri Simanta Thakuria ceased to be a Director with effect from 19.05.2017.VI. Shri Jishnu Barua was appointed as Director with effect from 10.08.2017.VII. Shri Alok Kumar ceased to be a Director with effect from 08.08.2017.VIII. Smti Kalyani Baruah took charge of Managing Director with effect from 30.06.2017.IX. Shri Rabin Kalita ceased to be Managing Director with effect from 30.06.2017.X. Shri Puru Gupta was appointed as Director with effect from 15.12.2017.XI. Shri Satyendra Nath Kalita was appointed as Director with effect from 15.12.2017.XII. Shri Samir Kumar Sinha was appointed as Director with effect from 09.03.2018.XIII. Shri Ravi Kota ceased to be a Director with effect from 09.03.2018.

Shri S. N. Kalita, Chief Financial Officer (CFO) and Ms, Nayana Das, Company Secretary were KeyManagerial Personnel of the Company.

Declaration of Independent Directors:Pursuant to the provisions of Section 149(6)/(7) of the CompaniesAct, 2013 and the relevant Rules, theCompany had received necessary declarations from each Independent Director for the FY 2017-18confirming that they met the criteria of independence as prescribed under the Act.

Board Evaluation :This is under the purview of the Govt. of Assam. The Board Members are being routinely evaluated bythe Govt. of Assam.Policy on Directors� Appointment, Etc.:The Company being a Government Company, the provisions of Section 134(3)(e) of the CompaniesAct, 2013 are not applicable in view of the Notification No. GSR-163(E) dated 05-Jun-2015 issued bythe Ministry of CorporateAffairs, Govt. of India.

Meetings of the Board and Committees thereof :

Five (5) Meetings of the Board of Directors were held on 27-06-2017, 08-09-2017, 14-12-2017, 29-01-2018 and 20-03-2018.Four (4) meetings of Audit Committee were held on 27-06-2017, 04-09-2017, 14-12-2017and 25-01-2018.Two (2) meetings of Corporate Social Responsibility (CSR) Committee were held on 14-12-2017 and25-1-2018.


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Meetings Meetings of Board Meetings ofAuditCommittee

Meetings of CRSCommittee

No. of Meetings held during tenure and attended

Name of Director/Member Held/attended Held/ attended Held/ attended

Shri Jishnu Barua 4/4 � �

Shri Puru Gupta 2/1 � �

Shri Samir Kumar Sinha 1/0 � �

Smti Zabin Rahman Ahmed 5/5 4/4 2/2

Smti Kalyani Baruah 4/4 � �

Shri Satyendra Nath Kalita 2/2 � �

Shri Anup Kumar Mitra 5/1 4/0 2/0

Shri Samir Baruah 5/4 4/4 1/1

Shri Thagit Nahardeka 5/5 � 2/2

Directors� Responsibility Statement :To the best of knowledge, belief and according to the information received, the Directors confirm asunder for the Financial Year 2017-18 in terms of Section 134(3)(c) of the Companies Act, 2013:

(a) in the preparation of the annual accounts, the applicable accounting standards had beenfollowed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them and made judgmentsand estimates that are reasonable and prudent so as to give a true and fair view of the stateof affairs of the Company at the end of the financial year and of the profit and loss of theCompany for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate account-ing records in accordance with the provisions of the Companies Act, 2013 for safeguardingthe assets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.

Audit Committee :

The Audit Committee has been constituted with the terms of reference as prescribed in Section 177 ofthe Companies Act, 2013. Smti Z. R. Ahmed was the Chairperson, Shri Samir Baruah and Shri A. K.Mitra were the members of the Committee as on the 31st March, 2018.


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Vigil Mechanism (Whistle Blower Policy) :

The Company has an adequate vigil mechanism. As a successor company of Assam State ElectricityBoard, an elaborate vigil mechanism laid out byASEB and in accordance with Govt. ofAssam are beingfollowed.

Nomination and Remuneration Committee and Policy :

Pursuant to the provisions of Section 178 of the Companies Act, 2013, the Board of Directors hasconstituted Nomination and Remuneration Committee. The Ministry of Corporate Affairs, Govt. of Indiahas vide Notification No. GSR-163(E) dated 05-Jun-2015 has modified the application of provisions ofSection 178 for Government companies so as to apply the same with regard to appointment of �seniormanagement� and other employees. The appointment and remuneration of the �Senior Managementand other employees� were governed by the Revision of Payment Rules which was issued in line of thepolicies of the Government of Assam and in this case the Company has to abide by Govt. Policy as it isa wholly owned Govt. Company.

Risk Management :

The Company is continuously doing risk management of the Company. The elements of risk threaten-ing the Company�s existence are very minimal. However, as required by Section 134(3)(n) of the Com-paniesAct, 2013, the Company has framed Risk Management Policy to identify various elements of riskand steps taken to mitigate the same. As an enterprise engaged in generation of electricity, the Com-pany has always had a systems-based approach to Business Risk Management. The risk manage-ment includes identifying types of risks and their assessment, risk handling and monitoring and report-ing. The Risk Management framework primarily focuses on following elements:

� Regulatory Risk

� Risk of Inflation and Cost Structure

� Network Risk

� Fuel availability and price fluctuation

� Credit Risk

� Liquidity Risk

� Dependence on Government for grants and subsidies

� Employees related risks

� Risk to Company�s assets and properties

� Risks associated with non-compliance of statutory enactments

NTPS, LTPS and KHLEP projects of the Company have been insured as per Industrial All Risk Policy.


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Extract of Annual Return :

Extract of Annual Return is furnished in Form MGT-9 as Annexure-2 and attached to and forming partof this Report.

Internal Financial Control Systems :

The Company has in place adequate internal financial controls with reference to financial statementscommensurate with the size and nature of its business.

Regulatory Report (Tariff) :

APGCL filed the petition for approval of Truing Up for FY 2016-17, Annual Performance Review (APR)for FY 2017-18 and revised Aggregate Revenue Requirement (ARR) and Tariff for FY 2018-19 on 29thNovember,2017.APGCLalso filed a petition forAggregate Revenue Requirement and provisional Tarifffor FY 2018-19 for Lakwa Replacement Power Project (LRPP) on 26th September, 2017. The Com-mission directed APGCL to publish the summary of the ARR and Tariff fillings in local dailies to ensuredue public participation. Accordingly, a public notice was issued by APGCLinviting objections/sugges-tions from stakeholderson or before 10th January, 2018. The notice was published in six (6) leadingnewspaper of the state on 20th December, 2017.The Hearing was held at AssamAdministrative Staff College, Khanapara, Guwahati, on 17th February,2018.The petition was also discussed in the Meeting of the StateAdvisory Committee (constitute under Sec-tion 87 of the electricity Act, 2003) held on 8thFebruary, 2018 at Assam Administrative Staff College,Khanapara, Guwahati.FinallyAERC issued an Order on 19th March, 2018on the True-up for FY 2016-17,APR for FY 2017-18,revised ARR for F.Y. 2018-19, Tariff for F.Y. 2018-19 and provisional tariff of LRPP for FY 2018-19. Thenew tariff has been effective from 1stApril, 2018.

Auditors :

As your Company is a Government Company within the meaning of section 2(45) of the CompaniesAct, 2013, the Comptroller andAuditor General of India, NewDelhi, (CAG) is the authority to regulate theappointment of statutory auditors and other incidental matters which appointed the statutory auditors ofthe Company for the year 2017-18 followed by the supplementary audit of the Comptroller and AuditorGeneral of India.M/S P. K. Sharma &Associates were appointed as Statutory Auditors of the Company for the FinancialYear 2017-18 by the Comptroller andAuditor General of India.

Auditors� Report :

The report of the Statutory Auditors for the financial year 2017-18 is appended with the Statement ofAccount. The replies of the Board of Directors to the StatutoryAuditors is being enclosed asAnnexure�5 to the Directors� Report.


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The comment of the Comptroller and Auditor General of India (CAG) in pursuance of section 139 of theCompanies Act, 2013 is being enclosed as Annexure-3 to the Directors� Report. The replies of theBoard of Directors to the comment of the CAG is being enclosed as Annexure -4 to the Directors�Report.

CostAudit :

M/S N. Kar Purkayastha, Cost Accountant was appointed as the Cost Auditor of the Company undersection 148 of the Companies Act, 2013 for the financial year 2017-18.

Secretarial Audit :

M/S C. S. Sharma & Co., Company Secretaries, Guwahati were appointed as the Secretarial Auditor ofthe Company under section 204 of the CompaniesAct, 2013 for the financial year 2017-18 and they havealready submitted their report which is being enclosed with Directors� Report 2017-18 as Annexure-6.

Corporate Social Responsibility (CSR) :

Annual Report on Corporate Social Responsibility (CSR) activities for the financial year 2017-18 is givenin the Annexure-7. The CSR Policy may be accessed on the Company�s website: http://www.apgcl.org

Other Disclosures :

a) There was no unpaid or unclaimed dividend declared and paid and therefore, no disclosure isrequired to be made pursuant to the provisions of Section 125 of the Companies Act, 2013.

b) The Managing Director of the Company did not receive any remuneration or commission from anyof its subsidiaries as there are no subsidiaries.

c) There was no change in the nature of business of the Company during the year.

d) No material changes and commitments affecting the financial position of the Company occurredbetween the end of the financial year to which these financial statements relate and the date of thisReport.

e) The Company is engaged in the generation of power which is covered under the exemption pro-vided under Section 186(11) of the Companies Act, 2013. Accordingly, details of loan given orguarantee or security provided by the Company are not required to be reported. The Company hasnot made any investment during the year.

f) The Company has no any subsidiary or joint venture or associate company as defined under theCompanies Act, 2013.

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g) The Company being a Government Company is exempted vide Notification No. GSR-163(E) dated05-Jun-2015 issued by the Ministry of Corporate Affairs, Govt. of India, to furnish information asrequired under Section 197 of the Companies Act, 2013 relating to particulars of employees.

h) During the year under review, the Company has neither accepted nor renewed any deposits cov-ered/as defined under Chapter-V of the Companies Act, 2013 read with the Companies (Accep-tance of Deposits) Rules, 2014.

i) There were no instances of frauds identified or reported by the StatutoryAuditors during the courseof their audit pursuant to Section 143(12) of the Companies Act, 2013.

j) The Company has not provided any Stock Option Scheme to the employees.

Industrial Relation:Industrial relation remained peaceful and cordial during the year under review.

Acknowledgement :

The Board of Directors expresses their grateful thanks to Government of Assam (Department of Powerand other Departments), Government of India (Ministry of Power), the Central Electricity RegulatoryCommission, Assam Electricity Regulatory Commission, various Financial Institutions, Suppliers andother Business Associates, Bankers, Consumers for their continued assistance, co-operation and pa-tronage. The Board also expresses grateful thanks to the Comptroller and Auditor General of India, thestatutory auditors and consultants/advisors for their suggestion and co-operation. The Board also placeson record its appreciation for the understanding and support extended by the employees at all levels.

Date: - 18th March,2019Place: - Guwahati

For and on behalf of the board

Sd/-

(V.K. Pipersenia)Chairman

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ANNEXURE 1 TO DIRECTORS� REPORTINFORMATION ON CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGNEXCHANGE EARNINGSANDOUTGOAS STIPULATED UNDER SECTION 134(3)(M) OF THE COM-PANIESACT, 2013 READWITH RULE-8(3) OF THE COMPANIES (ACCOUNTS) RULES, 2014

(A) Conservation of energy �

i). The steps taken or impact on conservation ofenergy;

ii). The steps taken by the company for utilizingalternate sources of energy;

iii). The capital investment on energy conserva-tion equipments;

(B) Technology absorption �

i). The effortsmade towards technology absorption;

ii). The benefits derived like product improvement,cost reduction, product development or importsubstitution;

iii). In case of imported technology (importedduring the last three years reckoned from thebeginning of the financial year)-(a) The details of technology imported;(b) The year of import;(c) Whether the technology been fully absorbed;

Energy Audit of both LTPS & NTPS was done byNational Productivity Council (NPC). LTPS andNTPS are taking all necessary measures as perguidelines of the report to reduce the energy con-sumption. Further, NTPS and LTPS, being desig-nated consumers of Bureau of Energy Efficiency(BEE) under PAT (Perform, Achieve and Trade)Scheme, have been given specific targets andboth Thermal Power stations are now followingthe suggested procedures prescribed in the En-ergy Audit Report to achieve targets as fixed bythe Ministry of Power, GOI/ BEE under PATScheme. Monitoring and verification of energysavings are being conducted by Accredited En-ergy Auditors of BEE.

Setting up of solar power plants initiated

Energy efficient Pump Set at LTPS Intake PumpHouse.

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Efforts were being made for application of new,suitable and efficient technology to improve effi-ciency of power plants.Control System upgradation likeMark VIe in LTPS.Continuous processes were being taken up forlowering the auxiliary power consumption and heatrate of machines.

Earning Energy Saving Certificates under PATCycle-I for the period of 2012-13 to 2014-15 inLTPS.

��Nil��


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(d) If not fully absorbed, areas where absorptionhas not taken place, and the reasons thereof; and

iv). The expenditure incurred on Research andDevelopment.

(C) Foreign exchange earnings and outgo �

The Foreign Exchange earned in terms of actualinflows during the years and the Foreign Exchangeoutgo during the year in terms of actual outflows.

�� Nil�

As per Annual Accounts

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Sd/-



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FORM NO. MGT-9

EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31-Mar-2018

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Managementand Administration) Rules, 2014]




I. REGISTRATIONANDOTHERDETAILS :

I CIN:- U40101AS2003SGC007239II. Registration Date 23.10.2013III. Name of the Company ASSAM POWER GENERATION CORPORATION

LIMITEDIV. Category/ Sub-Category of the Company Public Limited Company, Govt. CompanyV. Address of the Registered office and Registered & Corporate Office,

contact details Bijulee Bhawan, Paltanbazar, Guwahati-781001VI. Whether listed company NoVII. Name, Address and Contact details of

Registrar and Transfer Agent, if any NOTAPPLICABLE

II.PRINCIPALBUSINESSACTIVITIESOF THECOMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall bestated:-

Sl. No. Name and Description of NIC Code of the % to total turnovermain products / services Product/ service of the company

1 Electric power generation, 3510 95.86transmission and distribution

ANNEXURE-2

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III. PARTICULARSOFHOLDING, SUBSIDIARYANDASSOCIATECOMPANIES �

1 N.A. N.A. N.A. N.A. N.A.

S.No Name and Address of theCompany

CIN/GLN Holding/Subsidiary/Associate

% of sharesheld

ApplicableSection

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity) Category-wise Share Holding :

Category ofShareholders

No. of Shares held at thebeginning of the year

(01-Apr-2016)

No. of Shares held at theend of the year(31-Mar-2017)

% Changeduringthe year

Demat

Physical Total % ofTotalShares

Demat


A. Promoters(1) Indiana) Individual/HUF 0 0 0 0 0 0 0 0 0b) Central Govt. 0 0 0 0 0 0 0 0 0c) Govt. of Assam 0 45585967 45585967 99.99998 0 45585967 45585967 99.999982 0

245-100 45-100d) Bodies Corp. 0 0 0 0 0 0 0 0 0e) Banks / FI 0 0 0 0 0 0 0 0 0f)Any Other�. 0 8 8 0.0 000 0 8 8 0.00001 0

1755-0 5-0Sub-total (A) (1):- 0 45585975 45585975 100 0 45585975 45585975 100 0(2) Foreign 0 0 0 0 0 0 0 0 0a) NRI Individuals 0 0 0 0 0 0 0 0 0b) Other Individuals 0 0 0 0 0 0 0 0 0c) Bodies Corp. 0 0 0 0 0 0 0 0 0d) Banks / FI 0 0 0 0 0 0 0 0 0e) Any Other�. 0 0 0 0 0 0 0 0 0Sub-total (A) (2):- 0 0 0 0 0 0 0 0 0Total Shareholdingof Promoter 0 45585975 45585975 100 - 45585975 45585975 100 0(A) =(A)(1)+(A)(2)B. Public Shareholding1. Institutions 0 0 0 0 0 0 0 0 0

[16]


� �

Category ofShareholders

No. of Shares held at thebeginning of the year

(01-Apr-2016)

No. of Shares held at theend of the year(31-Mar-2017)

% Changeduringthe year

Demat


Demat


[17]

a) Mutual Funds 0 0 0 0 0 0 0 0 0b) Bank / FI. 0 0 0 0 0 0 0 0 0c) Central Govt. 0 0 0 0 0 0 0 0 0d) State Govt. 0 0 0 0 0 0 0 0 0e) Venture Capital Fund. 0 0 0 0 0 0 0 0 0f) Insurance Companies 0 0 0 0 0 0 0 0 0g) FIIS 0 0 0 0 0 0 0 0 0h) Foreign VentureCapital Fund. 0 0 0 0 0 0 0 0 0i) Others (Specify) 0 0 0 0 0 0 0 0 0Sub-total (B)(1):- 0 0 0 0 0 0 0 0 02. Non- Institutionsa) Bodies Corp.i) Indian 0 0 0 0 0 0 0 0 0i) Overseas 0 0 0 0 0 0 0 0 0b) Individualsi) Individualshareholdersholding nominal 0 0 0 0 0 0 0 0 0share capital inexcess ofRs. 1. Lakhsii) Individualshareholdersholding nominal 0 0 0 0 0 0 0 0 0share capital inexcess of Rs. 1.Lakhsc) Others (specify) 0 0 0 0 0 0 0 0 0Sub-total (B)(2):- 0 0 0 0 0 0 0 0 0Total PublicShareholding(B)=(B)( 1)+ (B)(2) 0 0 0 0 0 0 0 0 0C. Shares held byCustodian for 0 0 0 0 0 0 0 0 0GDRs & ADRsGrand Total 0 45585975 45585975 100 0 45585975 45585975 100 0(A+B+C)


� �[18]

(II) SHAREHOLDINGOFPROMOTERS:

Shareholder�sName

Shareholding at the beginning ofthe year (01/04/2016)

Shareholding at the end of theyear (31/03/2017)

%changein shareholdingduringtheyear

No. ofShares

% of totalSharesof the

company

% of SharesPledged/

encumberedto totalshares

Sr.No

No. ofShares

% of totalSharesof the

company

%of SharesPledged/encum-bered to

total shares

1 Governor of 45585967 99.99998245~100 0 45585967 99.99998245~100 0 0

Assam

Othres as per

Govt.of Asam�s

approval

As on 1.4.2017:

2 Shri Ravi Capoor 1 0.00000002193~0 0 0 0 0 100

3 Shri Utsaba 1 0.00000002193~0 0 0 0 0 100

Nanda Bora

4 Shri Mukut 1 0.00000002193~0 0 0 0 0 100

Chandra Gogoi

5 Shri Krishna 1 0.00000002193~0 0 0 0 0 100

Phatowali

6 Shri Golap Kumar 1 0.00000002193~0 0 0 0 0 100

Das

7 Shri Bishnu Prasad 1 0.00000002193~0 0 0 0 0 100

Goswami

8 Smti Kalyani Baruah 1 0.00000002193~0 0 1 0 0 0

9 Shri Prasanta Kumar 1 0.00000002193~0 0 0 0 100

Khaund

As on 31.3.2018:

2 Shri Jishnu Barua 0 1 0.00000002193~0 0 100

3 Shri Puru Gupta 0 1 0.00000002193~0 0 100

4 Shri Satyendra Nath 0 1 0.00000002193~0 0 100

Kalita

5 Shri Rajam Barooah 0 1 0.00000002193~0 0 100

6 Shri Anil Kumar 0 1 0.00000002193~0 0 100

Phukan

7 Shri Rupam Boruah 0 1 0.00000002193~0 0 100

8 Smti Kalyani Baruah 1 0.00000002193~0 0 1 0.00000002193~0 0 0

9 Mrs. Mira Sarma 1 0.00000002193~0 1 0.00000002193~0 0 100

Total 45585975 45585975


� �

(III)CHANGEINPROMOTERS�SHAREHOLDING(PLEASESPECIFY, IFTHEREISNOCHANGE) :

Shareholding at the beginning ofthe year (01/04/2016)

Cumulative Shareholding duringthe year

No. ofShares

% of total shares of theCompany

Sr.No

No. ofShares

% of total shares of theCompany

NIL NIL NIL NIL NIL

NIL NIL NIL NIL NIL

At the End of the year NIL NIL NIL NIL NIL

(31/03/2018)

(IV) SHAREHOLDINGPATTERNOFTOPTENSHAREHOLDERS (OTHERTHANDIRECTORS, PROMOTERSANDHOLDERSOFGDRSANDADRS):

Shareholding at the beginningof the year (01/04/2017)

Cumulative Shareholdingduring the year

Sr.No

No. ofShares

% of total sharesof the Company

At the beginning of the year

Date-wise Increase/DecreaseinShare holding during the yearspecifying the reasons for in-crease/decrease (e.g. allot-ment/transfer/bonus/sweatAt theEnd of the year (or on thedate of separation, if separatedduring the year)

For Each of the top 10Shareholders

No. ofShares

% of total sharesof the Company

NotApplicable

(v) Shareholding of Directors and Key Managerial Personnel :

For Each of theDirectors and KMP

Shareholding at thebeginning of theyear (01-Apr-2016)

Date CumulativeShareholding

during the year andAson 31-Mar-2017

Sr.No

DIRECTORS1 Shri Jishnu Barua, 0 0.00 14.12.2017 Transfer - 1 0.00000002193~0

IAS2 Shri Puru Gupta* 0 0.00 27.06.2017 Transfer - 1 0.00000002193~03 Shri Satyendra 0 0.00 14.12.2017 Transfer - 1 0.00000002193~0

Nath Kalita*4 Smti Kalyani Baruah** 1 0.00 Date of Transfer - 1 0.00000002193~0

Sharetransfer:19.09.2007

Increase /Decrease

Reason

Name No. ofShares

% of totalshares of theCompany

No. ofShares

% of totalshares of theCompany

[19]


� �

*Shri Puru Gupta and Shri Satyendra Nath Kalita became shareholders before becoming Directors.They were appointed as Directors with effect from 15.12.2017.

**She has been a shareholder before becomingManaging Director. She has been aManaging Directorsince 30.06.2017.

Secured Loansexcludingdeposits

UnsecuredLoans

Indebtedness at the beginningof the financial year (01-Apr-17)i) Principal Amount 4,36,35,01,149.00 4,12,21,69,666.00 8,48,56,70,815.00ii) Interest due but not paid 10,23,84,270.00 1,68,49,14,644.00 1,78,72,98,914.00iii)Interest accrued but not due 9,59,235.00 9,59,235.00

Total (i+ii+iii) 4,46,58,85,419.00 5,80,80,43,545.00 10,27,39,28,964.00Change in Indebtedness duringthe financial year

� Addition 2,24,62,31,131.00 2,24,62,31,131.00� Reduction 22,57,67,568.00 46,91,06,329.00 69,48,73,897.00

Net Change 22,57,67,568.00 177,71,24,802.00 155,13,57,234.00Indebtedness at the end of theFinancial Year (31-Mar-18)i) Principal Amount 4,14,02,06,897.00 5,26,67,87,934.00 940,69,94,831.00ii) Interest due but not paid 9,99,10,954.00 2,29,43,79,147 .00 239,42,90,101.00iii) Interest accrued but not due - 2,40,01,266.00 2,40,01,266.00

Total (i+ii+iii) 424,01,17,851.00 758,51,68,347.00 1182,52,86,198.00

Deposits TotalIndebtedness

[20]

VI. INDEBTEDNESS (ASON31-MAR-2018):


� �

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sr.No.

Particulars of Remuneration Name of MD/WTD/Manager TotalAmountRs.Smt.Kalyani Baruah

01.07.17-31.03.18Shri RabinKalita (i/c)

01.04.17-30.6.17

B. Remuneration to other directors :( w.r.t 2017-18 meetings)

Sr.No.

Particulars ofRemuneration

Name of Directors TotalAmountIndependent Directors

1 Independent Directors Shri A. K. Mitra Shri S. Baruah* Fee for attending board/committee meetings Rs.250/- Rs.2250/- Rs.2500/-* CommissionOthers, please specify Rs.3000/- Rs.21750/- Rs.24750/-(Out of pocket,Conveyanceexpense)Total (1) Rs.3250/- Rs.24000/- Rs.27250/-

1. Gross salary 14,46,170.00 0 14,46,170.00a) 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

c) Profits in lieu of salary undersection 17(3)ncome tax Act,1961

2. Stock Option3. Sweat Equity4. Commission

- as % of profit- others, specify�

5. Others, please specify (T.A.) 186701.00 0 1,86,701.00

Total (A) 16,32,871.00 0 16,32,871.00Ceiling as per the Act Not applicable as Section 197 of Companies Act, 2013 shall not apply to

Government Companies.

[21]


� �

C. Remuneration to Key Managerial Personnel other than MD/ MANAGER / WTD: (Rs.)

Sr.No.

Particulars of Remuneration Key Managerial Personnel

CompanySecretary

CFO Total

1. Gross salary 11,55,743.00 3,60,685.00 15,16,428.00Salaryasperprovisionscontained insection 17(1) of the Income-taxAct,1961Valueofperquisitesu/s17(2) Incometax Act, 1961Profits in lieu of salary under section17(3) Income-taxAct, 1961

2. Stock Option 0 0 03. Sweat Equity 0 0 04. Commission 0 0 0

- as % of profit- others, specify..

5. Others, please specify (T.A.) 22,400.00 6,465.00 28,865.00Total 11,78,143.00 3,67,150.00 15,45,293.00

[22]

Sr.No.

Particulars ofRemuneration

Name of Directors TotalAmountIndependent Directors

2 Other Non-Executive Shri T. Nahardeka Smti Z. R. AhmedDirectors* Fee for attending board /committee meetings Rs.2000/- �- Rs.2000/-

* CommissionOthers, please specify (Out of Rs.21000/- Rs.4500/- Rs.25500/-pocket, Conveyance expense)

Total (2) Rs.23000/- Rs.4500/- Rs.27500/-Total (B)=(1+2) Rs.54750/-Total ManagerialRemuneration

Overall Ceiling as per the Act Not applicable as Section 197 of Companies Act, 2013 shall notapply to Government Companies.


� �

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Section of theCompanies Act

Details ofPenalty /

Punishment/Compoundingfees imposed

Authority[RD / NCLT/COURT]

Appeal made,if any (giveDetails)

Type BriefDescriptison

A.COMPANYPenaltyPunishment NILCompoundingB.DIRECTORSPenaltyPunishment NILCompoundingC.OTHEROFFICERS INDEFAULTPenaltyPunishment NILCompounding

[23]



Sd/-



� �

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OFINDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ONTHE ACCOUNTS OF ASSAM POWER GENERATION CORPORATIONLIMITED FOR THE YEAR ENDED 31st MARCH 2018

The preparation of financial statements of ASSAM POWER GENERATION CORPO-

RATION LIMITED, for the year ended 31March 2018, in accordancewith the financial reporting

framework prescribed under the CompaniesAct, 2013 is the responsibility of the management

of the company. The StatutoryAuditor, appointed by theComptroller andAuditor General of India,

under Section 139(5) of the CompaniesAct,2013 are responsible for expressing opinion on

these financial statements under section 143 of the Companies Act, 2013 based on indepen-

dent 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 1st October,

2018.

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

supplementary audit of the financial statements of ASSAMPOWERGENERATION CORPO-

RATION LIMITED, for the year ended 31 March, 2018 under section 143 (6) (a) of the

companiesAct. 2013. 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

statutory auditors and company personnel and a selective examination of some of the

accounting records.

Based on my supplementary audit, I would like to highlight the following significant

matters under section 143 (6) (a) of the CompaniesAct, 2013 which have come to my atten-

tion and which, in my view, are necessary for enabling a better understanding of the financial

statements and the relatedAudit Report.

[24]

ANNEXURE - 3


� �

A. COMMENTS ON FINANCIAL POSITION

1. Balance SheetCurrent AssetsFinancialAssetsTrade Receivable Note 6(I) 141.74 crore

The above is overstated by 17.54 crore, being cumulative past revenue gap, recoverablefrom Assam Power Distribution Corporation Limited as allowed by Assam Electricity Regulatory Com-mission (AERC) vide tariff order dated 19 March 2018. Non accounting of revenue gap as allowed byAERC resulted in understatement of receivable by 17.54 crore and understatement of profit for theyear by similar amount.

2. Balance SheetCurrent AssetsInventories - ( Note-5) 62.63 crore.

The above includes 3.62 crore being the cost of one HT motor and Exciter assembly pro-cured for compressor of Lakwa Thernal Power Station which should have been accounted under �Prop-erty Plant and Equipments� as per the requirements of IndianAccounting Standard (IndAS)-16. Wrongaccounting of Capital Assets as inventory resulted in overstatement of Inventories and understatementof �Property Plant and Equipment� by 3.62 crore each.

B. GENERAL

1. The Board of Directors approved decommissioning of Lungi HEP, Unit 1 to 4 of Lakwa ThermalPower Station (LTPS), Unit 1 & 2 of Chandrapur Thermal Power Station and Unit 1 of NamrupThermal Power Station, scrap value of which have not been ascertained. The fact should havebeen suitably disclosed in the Notes to accounts.

[25]


� �[26]

Date: - 17-01-2019Place: - Guwahati

For and on behalf of theController andAuditor General of India

PrincipalAccountantGeneral(Audit),Assam

2. M/s Assam Gas Company Limited (AGCL) raised a claim of 55.63 crore in respect of LTPS, inaddition to dues against its regular bill for supply/transportation of gas to the Power Station of theCompany. In turn, the Company had raised a debit note of 41.21 crore against AGCL for trans-porting non-compressed gas and raising bill for compressed gas. Even though, the amount raisedin the debit note is under consideration by both the Companies the Company had started (October2014) adjusting the amount against the regular bills of AGCL and set off 24.63 crore till March2018. The fact merits suitable disclosure.


� �




MANAGEMENT�S REPLIES TO COMMENTS OF THE COMPTROLLER AND AUDITORGENERALOF INDIAUNDERSECTION143(6)(b)OFTHECOMPANIESACT, 2013ONTHEACCOUNTSOF ASSAM POWER GENERATION CORPORATION LIMITED FOR THE YEAR 2017-18

Observation Reply of Management

1.The Hon�ble AERC in its Tariff Order for the FY2018-19 approved the cumulative Revenue Gapof Rs. 17.54 Crore for APGCL. This Gap is to berecovered from APDCL in twelve monthly equalinstalments of Rs. 1.46 Crore in FY 18-19, asadjustments to themonthly bill. Hence as directedby the Hon�ble Commission, APGCL is raisingmonthly adjustment bills of Rs.1.46 Crore w.e.fApril��18 onwards and the same is accounted forin the respective months.

ANNEXURE - 4

[27]

A. COMMENTS ON FINANCIAL POSITION

1. Balance SheetCurrent AssetsFinancialAssets

Trade Receivable Note 6(I) 141.74 crore

The above does not include 17.54 crore beingcumulative past revenue gap, recoverable fromAssamPower Distribution Corporation Limited asallowed byAssamElectricity Regulatory Commis-sion (AERC) vide tariff order dated 19March 2018.Non accounting of revenue gap as allowed byAERC resulted in overstatement of receivable by17.54 Crore and understatement of profit for the

year by similar amount.

2. Balance SheetCurrent AssetsInventories (Note � 5) 62.63 CroreThe above includes 3.62 crore being value ofone HT motor and Exciter assembly procuredfor compressor of Lakwa Thermal Power Stationwhich should have been accounted under�Property Plant andEquipment� as per the require-ment of Indian Accounting Standard (Ind � AS) -16. Wrong accounting of Capital Assets asinventory resulted in overstatement of Inventoriesand understatement of �Property Plant andEquipment� by 3.62 crore.

2. Necessary rectification shall be made in theFY 2018-19.


� �

B. GENERAL1. The Board of Directors approved1 decommis-

sioning of Lungnit HEP, Unit 1 to 4 of LakwaThermal Power Station (LTPS), Unit 1 & 2 ofChandrapur Thermal Power Station and Unit1 of Namrup Thermal Power Station, scrapvalue of which have not been ascertained. Thefacts should have been suitably disclosed inthe Notes to accounts

2. M/s Assam Gas Company Limited (AGCL)raised a claim of 55.63 crore in respect ofLTPS, in addition to dues against its regularbill for supply/ transportation of gas to thePower Station of the Company. In turn, theCompany had raised a debit note of 41.21crore againstAGCL for transporting non com-pressed gas and raising bill for compressedgas. Even though, the amount raised in thedebit note is under consideration by both thecompanies, the Company had started (Octo-ber 2014) adjusting the amount against theregular bills ofAGCLand set off 24.23 croretill March 2018. The fact merits suitable dis-closure.

[28]

1. Noted.

2. Noted.

1 Vide meeting dated : 27 June 2017, 8 September 2017, 14 December 2017 and 16 May 2018



Sd/-

(V. K. Pipersenia)Chairman


� �




MANAGEMENT�S REPLIES TO STATUTORY AUDITORS� REPORT ON THE ACCOUNTS OFASSAM POWER GENERATION CORPORATION LIMITED FOR THE YEAR ENDED 31st MARCH2018


I. IND-AS INDIANACCOUNTING STANDARDS

The Company did not comply with the require-ments of following Ind-AS IndianAccounting Stan-dard and Schedule III in its entirety as laid downby ICAI and notified under The Companies Act,2013 while preparing & presenting its standaloneInd-AS financial statements:-IND- AS-101: First-time Adoption of IndianAccounting Standards;IND-AS-1: Presentation of Financial Statements;IND-AS-8: Accounting Policies, Changes inAccounting Estimates and Errors;IND-AS- 16: Property, Plant and Equipment;IND-AS-19 &AS 15: Employee Benefits;IND-AS-20: Accounting for Govt. Grants andDisclosure of Govt. Assistance;IND-AS-32: Financial Instruments;IND-AS-36 & AS 28: Impairment of Assets;IND-AS-37: Provisions, Contingent Liabilities andContingent Assets;IND-AS-105: NonCurrentAssetsHeld for Sale andDiscontinued Operations;IND-AS-12: Income Taxes; andIND-AS-24: Related Party Disclosures

The Company has for the first time adopted for IndAS while preparing its Statement of Accounts andfollowed the IndAccounting Standards of ICAI ap-plicable to theCompanywhile preparing & present-ing its financial statement. Also necessary disclo-sures have been made.However, recommendations of the audit in the sub-sequent paras with respect to disclosures for therespective Ind AS will be made in preparing theaccounts for FY 2018-19.

ANNEXURE-5

[29]

II. CAPITAL RESERVECapital Reserve includes the Government Grantreceived from State Govt during the year. TheCompany has classified this subhead under thehead �Other Equity� in its Balance Sheet withregard to letter no. ASEB/ACT/FIN/87/Pt-VI/35dated 12.11.2008 wherein it is stated that Gov-ernment grants towards cost of capital assets

Government Grant received from State Govt. forSpecific works/projects are utilised in those works/projects. The amount sanctioned by the Govt. ofAssam in accordance with respective plan/ projectsubmitted by the Company and the Companyneeds to submit the utilisation of the same. Ac-cordingly APGCL has submitted all the relevantutilisation certificates to the Govt. of Assam.


� �

Observation Reply of Managementare contribution of the owner (i.e. State Govt.) towardscapital of the Company and will be converted to equityin future. During the year, theCompany receivedGrantsfrom Govt. Of Assam in respect of following projects:

Necessary classification and disclosure re-quirements will be made in FY 2018-19.

[30]

1. LRPP 292.00

2. Lower Kopili Hydro Electric Project 15000.00

3. Development ofAmguri Solar Park 2641.00

4. Myntriang Small Hydro Electric

Project fromAIFA 1191.66

Total 19124.66

Sl.No. Name of the Project Amount (in Rs

Lakhs)

On our verification, it appeared that the company doesnot maintain project wise details of expenses. There-fore, it is not possible for us to comment on the exactamount of grant utilised

III. BORROWINGS

A) SECURED LOAN PFCL LOAN

The company avails loan from PFCL for its variousprojects/schemes, the details of which are as under:

Project/Scheme

No. OfLoan

O/S as on31.03.2017

KLHEP 62102002 3128.52 Monthly

R&M-IILTPS 62404001 731.37 Quarterly

LWHRP 62401001 6368.46 Quarterly

NRPP 62401003 31173. 72 Quarterly

Total 41402.07

Terms ofrepayment

As per Schedule III of The Companies Act, 2013 theamount of instalments payable in next twelve monthsfrom the Balance sheet Date shall be classified underthe HeadOther Current Liabilities � Current Maturitiesof Long Term Debt. But the said Disclosure require-ments have not been duly complied as a result of whichBorrowings has been overstated and Other currentliabilities have been understated by Rs.2169.21 lakhs


� �


Necessary rectification will be done in FY2018-19.

(B)UNSECURED LOANGOVT LOAN

The company avails loan from State Govt for variousprojects under state plan. No document except the sanc-tion letter of Government in respect of Govt Loans re-ceived during the year was produced during audit. Asreported no agreement was executed for theGovt. Loanand hence was not furnished before audit. So, we couldnot verify the terms & conditions of loan and the dis-crepancies if any. However, as reported the companyhas not started repayment of any due amount as stipu-lated.

IND-AS: 101: First-time Adoption of Indian AccountingStandards mandates that a first time adopter of IND-AS shall classify all Govt. Loans received as a financialliability or an equity instrument in accordance with IND-AS:32.The Company hence failed to comply the IND-AS.

As stated above the Company is not repaying loans toGOA and consequently making provisions for penal in-terest in its books of accounts. During the year underaudit the Company has booked an amount of Rs.871.00lakhs against penal interest. It is pertinent to mentionthat the AERC does not allow/ consider, any penal in-terest amount paid by the Company to the suppliers/vendors/lenders, for determination of tariff .Hence, theCompanymay have to absorb all penal interest amountpayable to GOA as it may not be realisable through tar-iff as revenue.

Further, it was observed that the Company has madea provision of Rs.871.00 lakhs against penal interestfor non repayment of Loan to Government of Assam.On verification it was found that there was calculationerror and penal interest amounting to Rs. 836.96 lakhsshould have been booked. As a result of which there isan understatement of profit of Rs. 33.70 lakhs and over-statement of CWIP to the tune of Rs.0.34 lakhs andcorresponding overstatement of �Other Financial Liabili-ties� amounting to Rs. 34.04 lakhs.

[31]

AMemorandum ofAgreement is executed on18-08-2018 betweenAPGCL and GoA for FY2018-19.

Noted for future guidance.


� �

Observation Reply of Management(C )ADB LOANThe Government of India (�GOI�) has entered into loanagreement with the Asian Development Bank (�ADB�)on 20.02.2015 for replacement of 4X15MWopen cycleturbine generators with 70 MW Gas Engines at Lakwaon the basis of a framework financing agreement dated13.05.2014 between the GOI and ADB, whereby theADB has agreed to provide a multi-tranche financingfacility to the GOI for purposes of financing projectsunder the Assam Power Sector Investment Program.TheCompany is treating the amount received fromADB(Asian Development Bank) at par with amount receivedfrom Government from Assam (GOA). The fundingpattern for the same is considered in the ration 90:10,where 90% of the fund received is treated as Grantand remaining 10% is treated as loan. Consequently,the Company is providing interest on the loan compo-nent @ 10% p.a. at par with loan from GOA.As per Schedule III of The Companies Act, 2013 theamount of instalments payable in next twelve monthsfrom the Balance sheet Date shall be classified underthe Head Other Current Liabilities � Current Maturitiesof Long Term Debt. But the said Disclosure require-ments have not been duly complied in both the casesof Govt. Loan and ADB Loan as a result of which Bor-rowings has been overstated and Other current liabili-ties has been understated.

IV. OTHER NON CURRENT LIABILITIESGPFA sum of Rs.6530.88 lakhs is shown under the aboveheadwhich represents the amount of subscription, GPFAdvance made; recovery of such advance and finalwithdrawal of GPF of the employees of its erstwhileorganisationASEBwho were absorbed byAPGCLandinterest provision made thereon. But, due tononinclusion of the name of APGCL in the schedule tothe Provident FundAct, 1925 and non- approval of theAPGCLTrust Regulation andAPGCLGPF Rules 2011by the Govt. Of Assam, the above amount is still lyingunder the above head and is being used by the Com-pany and no specific investment of the same is made.Also the learned AERC had directed the Company tomaintain separate account for the amounts receivedfrom the employees towards provident fund & its utili-zation to be duly audited by statutory audit but the sameis not followed.

[32]

Necessary classification and disclosure re-quirements will be made in FY 2018-19.

The Hon�ble AERC in its Tariff Order for FY2018-19 dated 19-03-2018 has directedAPGCL to complete the formalities of formingthe trust for Employee�s Provident Fund asearly as possible.APGCL is constantly pursuing the matter withGoA. Since the GPF Trust is yet to constituteby the Govt. of Assam, the Employees� contri-bution towards GPF are being used as inter-nal resource of the Company.


� �

Observation Reply of ManagementFurther, employee wise liability of GPF as on31.03.2018 for the purpose of verification of liabilityshown in the books of accounts could not be furnishedto the audit as a result of which we cannot commenton the correctness of GPF liability.

Furthermore, the comments made by the Comptrollerand Auditor General Of India on the accounts of theCompany for the year ended 31.03.2017 with regard toexcess creation of interest on GPF amounting to Rs.83.84 lakhs has not been rectified in the accounts forthe year under audit.

Employee wise liability of GPF shall be madeavailable from next year.

[33]

Necessary rectification done in FY 2018-19.

V. TRADE PAYABLES

Trade Payable represents liability towards OIL & GAILfor supply of fuel to the power stations of the Companyat Lakwa and Namrup and liability towardsAssamGasCompany Ltd. (AGCL) for transportation of Gas. Thetotal outstanding amount payable to these suppliers asper the books of accounts stood at Rs.4004.20 lakhsas on 31.03.2018.The balance apart from GAIL needsto be reconciled and actual liability shall be booked inthe books of accounts.

Further, the amount shown by the Company as contin-gent liabilities to OIL and AGCL by way of footnotes tothe financial statements in addition to the amountbooked as trade payables is not correct. The contin-gent liabilities have been overstated by Rs. 2589.22Lakhs.

Noted. Necessary reconciliation with respectto actual liability shall be done in FY 2018-19and any adjustment subject to such reconcili-ation shall be made accordingly in FY 2018-19.


(Figures in Lakhs)SUP-PLIER

Balance bookedby the Com-panyin the books ofaccounts

Balanceshown by thecompany ascontingentliabilities

AGCL 1773.26 6503.00 6503.00 1773.26

OIL 1979.95 22168.00 23332.00 815.95

Total 2589.22

Balance shownby Supplier

Difference

Furthermore, As per the agreement executed on 22/03/2003 betweenAGCLand erstwhileASEB, the Boardrequired to pay transportation cost of 80% of themonthly committed Consumption on the basis of dailybooked quantity i.e. 0.80MMSCMDwith OIL but as per

Details discussed in reply on Para XVII.Please refer the same.


� �


the agreement executed between OIL and APGCL ex-ecuted on 28/11/2007, the DCQ and MGQ were only0.66 MMSCMD & 0.528 MMSCMD respectively. Thus,due to the difference in DCQ&MGQ in both the agree-ments the APGCL is unnecessarily paying MDC to theAGCL which could have been avoided. Refer to parano (XVIII) below.

Recoveries made from the salary of the em-ployees are paid/ deposited to the respectiveentities regularly and in time. However, nec-essary records will be furnished from nextyear.Salary wages, bonus etc. are paid from HQas well as from field units. Consolidated TrialBalances of all units of the Company wereproduced to the audit.

[34]

VI. OTHER CURRENT LIABILITIES

A) PROVISION FROM EMPLOYEE BENEFITS

Employees� contribution and recoveries � Rs. 150.96lakhs Income tax deducted at source from staff pay-ment Rs.18.63lakhs LIC Premium RecoveredRs.0.21lakhs Profession tax recovered Rs. 10.32lakhsMiscellaneous recoveries from staffRs.121.65lakhsCumulative Time Deposit Recovered Rs..0.15 lakhsThe liability arising under the above head is in respectof various statutory dues and recoveries made fromthe salary of the employees which is required to bedeposited/ paid to the respective entities which thecompany failed .However, no proper record wasmadeavailable as such we are unable to comment whetherthe company is regular in making payments of statu-tory dues and also whether any long outstanding en-tries appear under this head.

B)OTHER PAYABLES

(i) Deposits and Retention from Suppliers and Con-tractors � Rs. 8474.96 LakhsThe details of liability as shown under the above headwere not available during audit.

(ii) Liabilities For Capital Supplies/Works- Rs. 4497.85 lakhsLiabilities for Supplies Works (O&M) - Rs. 1084.57 lakhs

Party wise details of retention from suppliersand contractors are maintained at relevant of-fice of retention i.e. field / HQ level in whichretention made.Hence respective details can be seen at fieldoffices for deposits & retention pertaining totheir offices and HQ for retentions made byHQ.

Bill wise break up are maintained at each ofthe accounting units. However Party wise de-tails shall be maintained onwards.


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Observation Reply of ManagementNo age wise, party wise, bill wise breakup of the abovetwo heads was furnished. The company has not main-tained any sub ledger maintained as such we could notverify whether the liability is long outstanding requiringwrite off if any and its impact on the financial statement.Further, no balance confirmation from the parties wasproduced for verification.

(iii) Other liabilities- Rs. 2006.79 lakhs

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Noted. TheCompany is regular inmaking pay-ments of all statutory dues

The following amount are shown under the above headRailway Credit Notes-Coal - Rs.1851.15lakhsService- tax deducted at source on payment to con-tractors - Rs.00.63 lakhs Income-tax deducted at sourceon payment to contractors - Rs.50.64 lakhs Liability forAssam Sales Tax (VAT) -Rs. (0.79) lakhsOther miscellaneous liabilities - Rs.105.15lakhs SubLedger of the above heads, if any, maintained was notproduced for verification. Out of above, Railway CreditNote-Coal & Other Miscellaneous Liability ofRs.1851.15lakhs and Rs.104.58 lakhs are long out-standing and are brought forward balances. Also out ofthe remaining liability which are statutory dues and re-quired to be paid within stipulated time the followingamounts are last year closing outstanding still due tobe paid Income-tax deducted at source on payment tocontractors -Rs.40.63 lakhsFor want of information we are unable to commentwhether the company is regular in making payments ofstatutory dues and also whether any other long out-standing entries appear under this head.

(iv) Staff Pension Fund (DCP) - Rs. 49.76 lakhs

The Liability appearing under this head in respect ofthe pension contribution of the new employees with thePension Trust namely NSDL. The employer and em-ployees contribution generally transferred to this headand in some cases the amount remaining to be con-tributed in respect of the employees in whose cases�PRAN� are not allotted generally kept under this head.However, as per relevant records it was noticed thatliability outstanding as on 31.03.2018 was Rs. 39.15lakhs. Thus, the liability is overstated byRs. 10.61 lakhs.



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VII.FIXED ASSETSa) Our comment regarding fixed asset register notmaintained properly and physical verification of fixedassets not done are already pointed in the audit reportof earlier years and the same irregularities are still per-sisting for the year under audit also. However, theman-agement on the basis of our comments has initiatedaction in this regard for valuation and verification of fixedassets and process for floating of tender for the sameis in final stages.

b) The company during the year reimbursed telephoneexpenses to the tune of Rs. 1.46 lakhs but on our veri-fication it was observed that the company had errone-ously capitalized the said expenditure under the head�OFFICE EQUIPMENT �Telephones and EPBX�.As aresult of which the profit has been understated and fixedasset overstated by Rs.1.46 lakhs.

Noted. APGCL has floated the tender for As-set valuation and verification of Assets & in-ventories in FY 2018-19 and bid evaluation isin process.On completion of the valuation and verifica-tion, necessary adjustment shall be done.

[36]

Necessaryrectificationwillbedone inFY2018-19.

VIII. CAPITAL WORK IN PROGRESSDuring the year under audit, the board of the Companytook a decision in its 66th Meeting held on 27.06.2017to abandon its Lungnit Project vide its resolution no.21d. But, the expenditure incurred on the said projectis still included in the head �CAPITAL WORK-IN-PROGRESS�. Thus, the company has not compliedwith the requirements of relevant INDAS. Further, dueto want of requisite information, we could not commenton the impact of such departure on financial statementsof the Company.

The company is coming up with a solar park atAmguri,Assamwith a generation capacity of 70 MW. The com-pany during the year had paid some amount as landcompensation to land owners for acquisition of landand capitalized the said amount in its books under thehead �CAPITALWORK-INPROGRESS� but other ex-penses incurred under several other like professionalconsultancy, vehicle hiring, salaries and wages, etc.has not been capitalized rather the same has been booked as expenses. Thus, the profit of the company isunderstated and capital work in progress, too have beenunderstated. However, due to want of information wecould not quantify the exact impact on the financialstatements.


Noted. Necessary rectification will be done inFY 2018-19.


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IX. OTHER NON-CURRENT ASSETS

No party wise sub ledger maintained and furnishedbefore audit as such we cannot comment on the same.

X. INVENTORY

a) The Company has recorded capital spares in its pre-vious GAAP financial statements as a part of inventory.However, on transition from previous GAAP to IND-ASregime, the Company has continued to treat capitalspares as inventories whereas INDAS � 16, Property,Plant and Equipment requires spare parts to berecognised in accordance with IND AS 16, when theymeet definition of property, plant and equipment. Fur-ther, IND AS � 101 requires a Company to recognisean asset whose recognition is required by the IND ASon the date of transition. Thus, the company has clearlynot complied with the requirements of both the IND-ASs.

b) Similarly, our comments with regard to valuation andphysical verification of inventories as highlighted in ouraudit reports for pervious financial years are still per-sisting. However, the management on the basis of ourcomments has initiated action in this regard for valua-tion and verification of inventories and process for float-ing of tender for the same is in final stages.Further, the Company has made a provision againststock for Rs. 3203.05 Lakhs which is being continuedas such since last several years and no basis for suchprovision could be produced to the audit. Therefore,we cannot comment on such provision.

c) Material Division was set up as per organisationalrestructuring of APGCL, to enable the Company to runsmoothly and efficiently. Materials are issued frommaterials division to other sub-divisions on the basis ofrequisitions of materials/spares after approval fromAGM of the respective sub � divisions. In this regard itwas noted thatmajor over haulingwork ofGT#3of LakwaThermal Power Station was carried out in FY 2016-17.

Noted for future guidance

[37]

Necessary recognition will be done in FY2018-19.

Noted. APGCLhas floated the tender for valu-ation and verification of inventories and assetsin FY 2018-19 and bid evaluation is in process.On completion of the valuation and verifica-tion, necessary adjustment shall be done



� �


For the said work, some capital spares amounting toRs. 639.80 lakhs were brought from Namrup ThermalPower Station and the said amount was charged to theStatement Profit and Loss under the Head �repair andmaintenance of Plant and Machineries�. However, dur-ing the verification we noticed that an amount of Rs.585.06 Lakhs was booked as expense under the head�repair andmaintenance of Plant andMachineries� dur-ing the year under audit. On perusal of relevant records,it was found that said expenditure was booked againstthe capital spares brought from NTPS during the previ-ous year. Thus, the same expenditure has been bookedtwice and as a result of which profit has been under-stated by Rs. 585.06 lakhs and stores have been un-derstated by the said amount.

A major overhauling work of GT#6 of Lakwa ThermalPower Station was carried out during the year underaudit by the contractor M/s Cortech Energy and as perthe completion certificate issued by the GM, LTPS; thesaid work was completed on 10/01/2017. The materi-als/spares for the overhauling were procured from M/sBHEL GE Gas Turbine Services Pvt. Ltd. During theyear under audit, the company has booked expendi-ture to the tune of Rs. 783.24 on account of materials.On perusal of records it was found that materialsamounting to Rs. 1043.58 lakhs were utilized duringthe overhaulingwork but expenditure of Rs. 848.73 lakhsonly was booked in the accounts against materials.Therefore, materials worth Rs. 194.85 lakhs thoughutilized for the overhauling work was not booked in theaccounts. Thus, resulting in understatement of profitand overstatement of stores to the tune of Rs. 194.85lakhs. Further, it was also noted that the said materialsand spares were utilized in the FY 2016-17 but expen-diture was booked partly in FY 2016-17 and FY 2017-18. Therefore, it can be concluded that the internal con-trol over stores is very weak and as such position ofstores is not reflected accurately in the financial state-ments.

[38]


� �

Observation Reply of ManagementThe company has shown an amount of Rs. 554.02 lakhspaid to BHEL Kolkata and Savair Energy Ltd. as pur-chase of materials and debited the head Inventories.However, on perusal of relevant records, it was noticedthat above payment was made as advance and mate-rials were received in the current year i.e. 2018-19.Thus, the inventories have been overstated by Rs.554.02 lakhs and Advance to Suppliers has been un-derstated by the said amount.

e) At KLHEP unit of the company is following the prac-tice of booking the amount of spares/materials as ex-penditure to the Statement of Profit And Loss as andwhen the same is received at site instead of when thesame is actually put to use which is the normal prac-tice followed by other units of the company.

Materials were received from BHEL Kolkataand Savair Energy Ltd. during FY 2017-18;however, final bills for adjustment of the ad-vance payments were sent during FY 2018-19 and hence accounted for as same.

[39]

Noted and practice already adopted w.e.fApril�2018.

XI. BALANCEWITH BANK

Account Balance statements of bank accounts wereproduced before audit and verified However, there areold non reconciled entries appear in the bank reconcili-ation statement for which no satisfactory explanationwas received from the company. For instance, follow-ing entries have been found in the BRS of SBI, NTPPBranch which are outstanding for more than 3 months.

Noted for future guidance. Necessary recon-ciliation of all non-reconciled entries are donein FY 2018-19.

Ch. Number Date Amount723787 29-03-2017 60.00723814 04-04-2017 20.00723875 24-04-2017 23889.00723945 17-05-2017 13392.00723694 24.05.2017 1952.00724733 28.08.2017 3949.00371681 21.12.2017 45507.00

Similarly, in BRS of other bank accounts of the Com-pany also it was found that few outstanding entries formore than 3 months are appearing.


� �


Noted. Necessary disclosure will be madefrom next year�s accounts

XII. FIXED DEPOSIT WITH BANK

No sub-ledger for Fixed Deposits is maintained by thecompany. It maintains only one statement of Fixed De-posits which is not complete in all respect.

As per the requirement of Sch III of the CompaniesAct2013 it is required to be disclosed separately in respectof Fixed Deposit held as margin money or securityagainst borrowing, guarantee, other commitment. Itshould be disclosed separately which is not disclosed.

On verification of Balance Confirmation obtained fromBanks relating to fixed deposits it was noted that therewas huge difference between the amount of fixed de-posit as per balance confirmation certificate and amountappearing in books of accounts. Details of which areas follows

Balance as per Bank Confirmation Rs.73196.79 lakhsStatement Balance as per Books of Rs.72137.50 lakhsAccounts Difference Rs.1059.29 lakhs

But no explanation for the difference amount was fur-nished before audit. .

XIII. OTHER FINANCIAL ASSETS

Amount recoverable from ONGCL Rs.583.20 lakhs

M/s ONGCL floated an open tender pertaining to saleof Gas from Banskandi and Bhubandar fields respec-tively in the Cachar District, Assam during December2013. The company participated in the said tender videapproval from board meeting dated 06.02.14 and thesaid tender was successful. M/s ONGCL allocated thegas to the company vide its letter dated 17.10.2015.However, the company subsequently raised certain is-sues regarding viability of the project. The said objec-tions and issues were discussed threadbare in a meet-ing held between officials of M/s ONGCL and theMD ofthe Company along with other officials on 14.10.2016

[40]

Necessary adjustment and reconciliation of thesame will be made in FY 2018-19.

The decision of ONGCL to cancel the allot-ment of gas and encashment of such hugeamount of security deposit would adverselyaffect APGCL�s initiative and detrimental fordevelopment of power projects in Assam.APGCL had approachedGoA for taking up thematter with ONGCL and MoPNG, New Delhivide letter dated 29.08.2017.The Government ofAssam is keen to developthe power project for improvement of powerscenario in the state of Assam and requestedM/s ONGCL for their initiative in this endeav-our. However, response from ONGCL is stillawaited


� �

Observation Reply of Managementat NewDelhi. ONGCL�s comments on the issues raisedwere communicated to APGCL vide letter dated20.10.16 and reiterated by letter 01.12.2016wherein theyexpressed their inability to consider the issues raisedby the Company relating to time extension for gas offtake and Gas price by stating that these were biddableitems and the company ought to have bid for this itemafter due diligence and proper project appraisal.Despite the clear communication from ONGCL, theCompany kept on raising these issues and conse-quently foreseeing no positive intentions from the Com-pany side to sign Gas Supply arrangements, ONCGLwent ahead and revoke the Letter of Credit fornonfulfilment of contractual obligations. The companyhas shown such amount as amount recoverable fromONGCL. But, in our opinion the recoverability of such isvery remote as the above shows that the Companyraised issues regarding viability of project after gettingallotment letter from M/s ONGCL. This clearly showsthat the company has not done proper project appraisalbefore participating in the tender and is prima facie atfault for not fulfilling its contractual obligations. Thus,company should have made provision for the same inits books.

XIV. OTHER CURRENT ASSETS

Other CurrentAssets include Fuel Related Receivables& Claims {Railway claims for Coal}, Advance recover-able from Contractors, Deposits, Miscellaneous Re-ceivable, Prepaid Expenses and Inter UnitA/c �ClosingBalance of Rs.747.91 lakhs, Rs.144.05 lakhs, Rs. 14.21lakhs, Rs. 9790.44 lakhs, Rs. 33.85 lakhs respectivelyconsist of old outstanding carry forward balance whichrequires proper adjustment or write off after fulfilmentof necessary formalities.

Inter unit A/c �Remittance to H.O. represents debit bal-ance of Rs. 8.30 lakhs and Inter Unit A/c � OpeningBalance consists of debit balance of Rs. 2.86 lakhs. Asper the accepted accounting principles inter unit ac-counts maintained at head office and branches should

[41]

Necessary adjustments shall be done in FY2018-19.

Noted. APGCL is initiating for identification ofold outstanding carry forward balance.Adjust-ment of same shall be carried out accordingly.


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Observation Reply of Managementbe reconciled at the Balance Sheet date and should besquared off so that no balance exists in such accountsas on the balance sheet date. However, in the books ofthe company there still exist the aforementioned bal-ances.

XV. REVENUE FROM OPERATIONS

Revenue from operation include sale of power to theAPDCL. On perusal it is observed that no agreement ofsale of power is executed between APDCL & APGCLand the therefore, billing has been continue to be as peragreement with the ASEB dt.19.07.2006. However, onthe basis of our comments in this regard in previousyears also, the Company has taken necessary actionand Power Purchase Agreement has been signed withAPDCL in the current year on 24.09.2018. Further, thebalance of trade receivables is unverifiable as the bal-ance confirmation has not been produced before audit.

On our verification it was observed that during the pe-riod of 01/04/2017 to 31/03/2018 the unit LTPS remainedidle for insufficiency of fuel during the period for1585.75hours and accordingly the production of energy suffereddue to such idle time 25.614 MU. Similarly, during theperiod of 01/04/2017 to 31/03/2018the unit NTPS re-mained idle for insufficiency of fuel during the period for3521.48 hours and accordingly the production of en-ergy suffered due to such idle time 54.692 MU. Hencethe management should take corrective steps to avoidsuch loss.

[42]

Noted.

APGCL is continuously pursuing with the gassupplier for improvement of gas supply toLTPS andNTPS. The gas supply to NTPS hasimproved slightly from the month of Octo-ber�18 and gas supply to LTPS has improvedslightly from the month of November�18.Further in a meeting held between APGCL,GAILandONGCon21/11/2018,GAILhascom-mitted that the contracted quantity of 0.4MMSCMD will be supplied to LTPS fromApril�19.

XVI.OTHER INCOME

a) Other Income from Trading- Rs. 75.35 lakhs

During the year under audit, the Company under thePerform, Achieve and Trade (PAT) mechanism,launched by Bureau of Energy Efficiency (BEE) overachieved its target for LTPS and under-achieved its tar-gets for NTPS. Consequently, the Company earnedEScerts for over achieving its targets for LTPS and

Necessary rectificationwill be made in FY2018-19.


� �


purchased EScerts for compensating under perfor-mance of NTPS. The Company sold and purchasedEscerts through Indian Energy Exchange(IEX) and trad-ing resulted in net gain of Rs. 75.35 lakhs. The Com-pany levied GST on the sale of Escerts and raised taxinvoice for the same. The break-up of the tax invoiceand calculation net gain are as follows:

[43]

However, on perusal of records it was observed thattotal GST liability on sales of Escerts was Rs. 44.50lakhs. But, the Company booked GST liability of onlyRs. 34.41 lakhs in its books and paid the same amountinstead of Rs. 44.50 lakhs. From the above it appearsthat theCompany has not booked the difference amountof GST liability and a result thereof the �Provisions� hasbeen understated by Rs. 10.09 lakhs. Further, the com-pany has not furnished tax invoices for purchase ofEscerts and GST input paid on such purchases hasnot been taken in the books of accounts.

b) A battalion of CRPF has occupied staff quarters atKarbi Langpi (KLHEP), Lengery on rent. Though theCompany is raising the bill on monthly basis but thesame is not booked in the books of accounts. The totalarrears of rent up to 31.03.2018 amounted to Rs. 22.31lakhs as a result of which there is an understatementof income and current assets by that amount.

Necessary rectification will be made in FY2018-19.

S.NO

Name of theParty

TaxableValue

GST Total Value

1. Uran Gas PowerStation 3675000.00 441000.00 4116000.00

2. Suratgarh Super Thermal 25000000.00 3000000.00 28000000.00Power Station

3. Raichur ThermalPower Station 8411943.00 1009433.16 9421376.16Total 37086943.00 4450433.16 41537376.16Less: Brokerage 976026.00Sale Proceeds 36110917.00Less: Purchase 28576320.00Net Gain 7534597.00


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(a) The gas supply to LTPS by OIL, Duliajanor the gas upliftment by LTPS fromOIL duringthe period April, Nov, Dec 2017, Jan, Feb &Mar 2018 was below theMGQ level due to thereasons mentioned in the following table.

XVII.COST OF MATERIAL CONSUMED

Cost of rawMaterial Consumed includes Gas procuredfromOIL, GAIL&AGCLand transportation charges paidtoAGCL.

a) The Company had entered into an agreement withOIL India Ltd. for supply of natural gas to its unit at LTPSon 02.09.2015. As per the agreement the daily con-tracted quantity (DCQ) is 0.50 MMSCMD and the Mini-mumGuaranteedQuantity (MGQ) is 80 percent of DCQand as stipulated in clause 4.03 of the agreement thatif during any month the Seller i.e. OIL is unable to sup-ply at the off take point theMGQof Gas, the Seller shallpay the Buyer the cost for the shortfall from MGQ forthat month at the rate prevailing during that month andthe amount shall be adjusted from the next monthlybill. However, on scrutiny of bills raised by OIL it wasseen that during the year under audit the supplier sup-plied gas less than the MGQ in 6 months out of the 12months. The details of the same are as follows :

[44]

Therefore, it is evident from the above that during halfof the year the supplier did not supplied even the agreedMGQ and as a result of which the plant remained idle.Further, as per the agreement the Company has notraised claim to OIL for less supply of gas resultingtherein understatement of profit and overstatement ofliability towards gas suppliers by the amount of claimwhich could not be quantified for want of information.

Month Actual Qty MGQ DifferenceSupplied (in MMSCM) (inMMSCM)(inMMSCM)

April 2017 10.16 12.00 (1.84)

Nov2017 11.98 12.00 (0.02)

Dec 2017 11.77 12.40 (0.63)

Jan 2018 0.92 12.40 (11.48)

Feb 2018 5.33 11.20 (5.87)

March 2018 10.84 12.40 (1.56)

TOTAL 51.00 72.40 (21.40)

Month Reason for inabil-ity to draw MGQlevel of gas

Remarks

April�17 (i) GT#1 already de-commissioned.(ii)GT#4notavailablethroughout themonth for startingDiesel Enginetrouble.(iii) 1 no. Gas Com-pressor of Ph-IIPower House wasout of order for mostpart of the monthwhich forced 1 no.GT out of operation.

Gas consumption ofGT units:0.15 mmscmd /each unit for 15MWGT unit # 1,2,3 & 4,0.18 mmscmd /each unit forGTunit# 5,6 & 7.Outage of 2 nos.15MW GTs for theentire month and 1no. 20MW GT formost part of themonth forced lessdrawal of gas

Nov�17

(i) GT#1 alreadydecommissioned.(ii)GT#4notavailablefor operation for start-ing Diesel Enginetrouble for the entiremonth and decom-missioned from 24/10/17.(iii) To facilitate instal-lation of switch yardequipments for theupcoming LRPP,shut down of GT#2had to be taken on02/11/18 & 24/11/17.(iv)Due to grid failureon 22/11/17, GT unit# 2,3,5,6 & 7 trippedat 16:53hrs and afterrestoration of gridpower, the last unitGT # 5 could besynchronised at21:11hrs only.

Outage of 2 nos.15MW GTs for theentire month andotheroutages forcedless drawal of gas.


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b) On scrutiny of records it was seen that, the mini-mum gauge pressure requirement of gas for Phase IGTs was 15 kg/cm2 and that of Phase II GTs was 20kg/cm2 at LTPS. It could be seen from the agreementthat, the supply gas pressure from M/s GAIL and M/sAGCL was low pressure gas and also as the plant lo-cation was away from the oil fields, the gas need to becompressed to boost its pressure to the required rangeto be able to use it in the gas turbines. Therefore, anadditional load of nine electric motor drive gas com-pressors were used on an alternate basis for meetinggas pressure requirements at LTPS. The gas compres-sors installed at the power station are electric motordriven and consume huge amount of power. Due tothe inclusion of energy consumed by gas compres-sors under the Station Auxiliary Energy Consumption(AEC); the AEC remained much higher than the ap-proved norms and the AERC had admitted only 5.50per cent of the Station AEC during truing up of tariff.

Further, As per gas transportation agreement with M/sAGCL for Namrup Thermal Power Station (NTPS), itwas agreed that the Company shall receive gas atgauge pressure of 10.54 kg/cm2 from OIL�s off-takepoint. M/s AGCL shall boost its pressure and transportthe gas by means of AGCL�s own pipelines and deliverthe same at the intake point of NTPS at a minimumpressure of 15.12 kg/cm2 and a maximum pressure of16.52 kg/cm2.As the gas transportation agreement wasas per the designed pressure requirement for the GTs,there was no requirement for boosting of the pressure.Thereby, resulting in cost advantages on account ofenergy consumption by the gas compressors. How-ever, this aspect had not been considered in gas pur-chase agreement of LTPS.

c) The Company had entered into an agreement withOIL for supply of natural gas to its unit at NTPS inApril2007.As per the agreement the daily contracted quan-tity (DCQ) of gas was fixed at 0.66 MMSCMD. Theagreement provided for payment of higher of actualcharges of gas supplied or the Minimum GuaranteedQuantity (MGQ), whichwould be 80%of 0.66MMSCMD

[45]


Remarks

Dec�17

(i) GT#1 & 4 alreadydecommissioned(ii) GT# 3 not avail-able from09/12/17 formaintenance of gen-erator rotor.(iii) GT#7 stoppedfrom 11:16hrs on 01/12/17 to 04:30hrs on02/12/17 for OIL�sgaspipeline repairingworks which was in-timated as a �ForceMajeure� from OIL�send under the provi-sion of GSPA.(iv) All running GTsstopped from07:33hrs to provideshut down of 132 KVLTPSmain bus to fa-cilitate Switch Yardrelated works of theupcoming LRPP till18:43hrs.(v) All running GTsstopped from07:29hrs to provideshut down of 132 KVLTPSmain bus to fa-cilitate Switch Yardrelated works of theupcoming LRPP till17:16hrs.

Outage of 2 nos.15MW GTs for theentire month andanother 15MWGT#3 from09/12/17alongwith other out-ages forced lessdrawal of gas.

Jan�18

(i) Shut down ofAGCL�s 20 inchNamrup �Lakwa LPgaspipe line from03/01/18 to 12/02/18 forhydrostatic test asper regulation ofPNGRB. As such,gas supply wasstopped during theperiod.(ii) GT#1 & 4 alreadydecommissionedand GT#3 not avail-ableforgenerator rotor

Only 0.92 mmscmgas could be upliftedas there was no gassupply for 29 daysduring themonthdueto schedule shutdown ofAGCLpipe-line.Also, outage of15MW GT#1,3 & 4for entire month and20MW GT#7 for 10days forced lessdrawal of gas.


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(i.e.0.528 MMSCMD), in case NTPS is unable to upliftthe DCQ for any reason.

The Company (erstwhileASEB) entered into an agree-ment with AGCL in March 2003 for transportation ofgas. The agreement provided for transportation of 0.8MMSCMD of gas per day to NTPS and 80% of thisquantity i.e. 0.64MMSCMDwas fixed for billing asMini-mum Demand Charge (MDC). If drawl of gas is 80 %or less of the contracted demand (i.e.0.64 MMSCMD),NTPS would pay transportation charges for 80% andno charges will be paid by NTPS for drawl of gas be-tween 80 to 100 % of the contracted quantity i.e. 0.8MMSCMD. Scrutiny of bills raised by AGCL revealedthat NTPS had been paying huge sums by way of MDCto AGCL. Moreover, when OIL, the seller, agreed tosupply only 0.66MMSCMD per day of which only 0.528MMSCMD was MGQ, the reason behind agreementfor transportation of 0.80 MMSCMD of gas, and pay-ment for 0.64 MMSCMD per day to AGCL cannot becomprehended. Had the DCQ and MGQ in both theagreements been same, the Company could haveavoided Rs. 68.42 Lakhs as payment towards trans-portation cost. Details of the same are as follows:

[46]


Remarks

problem during theentire month.(iv) GT#7 was notavailable from22/01/18 formaintenanceoftorque converter.

Mar�18

(i) GT#1 & 4 alreadydecommissioned.(ii)GT#7notavailabletill 14/03/18 formain-tenance of torqueconverter.(iii) GT#3 not avail-able from 24/03/18again for generatorrotor problem.

Outage of 2 nos.15MW GTs for theentiremonth and an-other 15MW GT#3and 20MWGT#7 formost part of themonth forced lessdrawal of gas.

Feb�18

(i) GT#1 & 4 alreadydecommissioned.(ii)GT#3notavailabletill 15/02/18 for gen-erator rotor mainte-nance.(iii) GT#7 undermaintenance oftorque converter dur-ing the entiremonth.(iv) Shut down ofAGCL�s 20 inchNamrup �Lakwa LPgaspipe line from03/01/18 to 12/02/18 forhydrostatic test asper regulation ofPNGRB. As such,gas supply wasstopped till 12/02/18.

Outage of 2 nos.15MW GTs and Ino. 20MW GT forthe entire monthand another 15MWGT#3 for 15 daysforced lessdrawalofgas. Also, therewas no gas supplyfromOIL for 12daysin the month

(b)Gas booster compressors are the majorpower consuming auxiliaries for LTPS gas tur-bine units which are required to supply gas atrated pressure to the gas turbines. Since gascompressors in LTPS are driven by motors,these consume electric energy which adds upto its auxiliary power consumption. For ex-ample, Ph-II Gas compressors consumearound 85% of total auxiliary power consump-tion, if Ph-II GT units are run in open cycle.Also, one gas compressor (1370KW) alone

Month A c t u a lVo l umeof GassuppliedbyOIL (inMMSCM

MGQ asper OIL�sa g r e e -m e n t(MMSCM)

MGQ asp e rAPGCL�sa g r e e -m e n t(MMSCM)

MDC billraised byAGCL

MDC ifMGQwould havebeen same

Difference

M a y 10.565 16.368 19.84 4108983.00 2570887.00 1538096.002017June 10.483 15.84 19.20 4556518.00 2800111.00 1756407.002017Oct 15.937 16.368 19.84 1994336.00 220339.00 1773997.002017Jan 15.252 16.368 19.84 2344137.00 570139.00 1773998.002017TOTAL 13003974.00 6161476.00 6842498.00


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consumes almost 5% of the power producedby one 20MWGT. In addition to the gas com-pressor, there are other auxiliaries which con-sume electric power. Thus, auxiliary powerconsumption of LTPS always remains muchhigher than the AERC approved norms of5.5%. If instead of electric motors, gas en-gines are used to drive the gas compressors,the gas fuel to run the gas engines will add tothe total gas consumption to generate power,which will again add to cost of generation.Again, if the suppliers supply compressed gasto LTPS, the Transportation charge (TC) willbe much higher as this will involve cost ofboosting the gas pressure. Higher TC willagain increase cost of generation. Thus, it isseen that if gas compressors are not used,auxiliary power consumption will be reducedbut cost of generation will go up. It may alsobe noted that, Ph-I GT units require gas pres-sure at 15 Kg/cm2, while Ph-II GT units re-quire gas pressure at 20Kg/cm2. Now, if GAILsupplies gas at 15 Kg/cm2 to PH-I GT units,the same gas cannot be usedfor Ph-II GTunits. Similarly, ifAGCL(OILgas) supplies gasat 20Kg/cm2 for Ph-II GT units, this gas can-not be used for Ph-I GT units. Thus, in theevent of shut down of Ph-I GT units, GAIL gascannot be used for Ph-II GT units and viceversa.Again, the gas suppliers cannot supplygas at two different gas pressure to run bothPh-I & Ph-II GT units. In this context, it may benoted that, here in LTPS Ph-I gas compres-sors supplies gas at 15Kg/cm2 pressure whilePh-II gas compressors supply gas at 20Kg/cm2 and these compressors can use gasfrom both OIL andGAIL. Hence, the gas com-pressor system along with the suppliers sup-plying gas at low pressure (LP) to LTPS hasgreater operational flexibility which savesLTPS from huge generation loss in case thegas supplier takes shut down due to forcedor planned maintenances.It is generally observed that though AGCL issupplying compressed gas to NTPS, at timesAGCL fails to supply the requisite quantity ofgas to NTPS only because they (AGCL) areunable to run the gas compressors due to lowgas pressure at the inlet to the gas compres-sors which is caused by low gas production/

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maintenance in the supply system/higher con-sumption by other consumers etc. on the partof the producer OIL.Also, OIL in order tomain-tain the gas pressure in the inlet to their LPGbottling plant at Duliajan in such a way that itdoes not trip on low gas pressure, restrictsAGCL from running gas compressors as perrequirement of downstream consumer NTPS.Sometimes, AGCL is forced to reduce thenumbers of running gas compressors due toabove so that gas pressure at OIL�s end ismaintained. In view of the above, NTPS gen-eration suffers for want of required gas sup-ply. However, in such a low pressure situa-tion in the OIL�s end, LTPS using its gas com-pressors still avails the gas supply throughAGCL�s uncompressed (LP) gas supply net-work, which saves LTPS from such genera-tion loss.Thus it appears from above that, the low pres-sure (LP) gas supply to LTPS has some sig-nificant advantages over HP gas supply, asfar as generation loss due to inability to sup-ply by the gas suppliers and optimisation ofgeneration at LTPS end are concerned.

XVIII. EMPLOYEE BENEFIT EXPENSE

The company has two categories of employees onebeing those who were in service of erstwhile ASEBand became employee of the company on bifurcationand other category being employees appointed by thecompany after its formation. As regard to employeesof erstwhile ASEB the company is [email protected]% of basic pay plus D.A. to the pension trustfor all post employment benefit of those employeesincluding pension, gratuity & leave encashment. Butsettlement of claim relating to P.F. & leave encashmentis done by the company and is claimed from pensiontrust with a defined ratio of the past unfunded liability.Thus the contribution made for such employees are inthe nature of defined benefit plan and no actuarial gainor losses is ascertained & provided for. Further disclo-sures are required to be made underAccounting Stan-dard No.AS-15 and IND-AS: 19 issued byThe Instituteof CharteredAccountant of India are not made. Due tonon accounting of actuarial gain or loss & non avail-ability of details of plan we could not ascertain its im-pact on the financial statement & profitability of the

Noted.Leave encashment benefit of employees un-der NPS are entitled at the time of retirement/superannuation of the employee. During theperiod of service the employees avail earnedleave at various time as per their need as wellas per due approval of the competent author-ity. So, the ascertainment of the balance leaveearned at the end of the year by each em-ployee is not feasible and hence no provisionfor leave encashment benefit is provided inthe accounts.However, the Company is going to implementERP in near future. As soon as ERP starts,we will be able to made provision for leaveencashment benefit.

Necessary disclosures shall be made in FY2018-19.

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company. As regard other category of the employeesemployed by the company it is making contribution to-wards national pension scheme which is defined con-tributory plan. But for leave encashment no provisionis made & no actuarial liability is ascertained.

As such the loss of the company is understated by un-derstating long term liability to the extent of actuarialamount of leave encashment payable for the servicerendered during the year under audit & in past year.

No proper explanation could be furnished before auditand hence we cannot comment on the employee ben-efit cost incurred by the Company.

On perusal of relevant records, it was observed thatsalaries of Karbi Langpi Hydro Electricity Project(KLHEP) for GPF employees for the month of March2018 has been booked in the month of April 2018 i.e.FY 2018-19. Thus, there is understatement of salariesto the tune of Rs. 13.11 lakhs with corresponding un-derstatement of Current Liabilities by Rs. 13.11 lakhs.

As per Section 21 0f the Contract Labour (RegulationandAbolition)Act, 1970, the principal employer and con-tractor have responsibility to maintain registers andrecords of contract labours, work perform by them,wages and other particulars as specified in the rule.The Company however is not maintaining any regis-ters and records of contract labours and thus violatingprovisions of Contract Labour((Regulation andAbolition)Act ,1970.

XIX.DEPRECIATION

As stated in para X above, due to non-recognition ofcapital spares as property, plant and equipment interms of IND AS � 16, depreciation on the same hasalso not been charged resulting in understatement ofexpenses and overstatement of profit by the amountnot charged as depreciation.Thus, calculation of depreciation is not proper and itdoes not reflect the true picture

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Necessary rectification already made in FY2018-19


Necessary rectification will be done in FY2018-19


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XX.OTHER EXPENSES

a) The Company had included in point 21 of the notesto the statement of profit and loss wherein effects ofprior period incomes and expenses was shown in thehead �Other Expenses�. The company had passed jour-nal entries for prior period incomes and reduced cur-rent year expenses and similarly passed journal entriesfor prior period expenses and enhanced current yearexpenses. But, since the Company adopted Indian Ac-counting Standards (IndAS) from year 2017-18 and thetransactions were in the nature of prior period error/omission, the same was required to be restated in theperiod of error/omission in accordance with IndAS � 8,which was not done.

b) In the KLHEP unit of the Company, on perusal of billpassing register it was observed that 4 nos. Of billsamounting to Rs. 11.68 lakhs relating to monthly bills ofAMCofDamhas not been booked in the accounts. Thus,resulting in overstatement of profits and understatementof Other Current Liabilities by Rs. 11.68 lakhs.

c) The Company has booked an expenditure amount-ing to Rs. 9.90 lakhs under the head �Other Expenses� Repair and Maintenance of Plant and Machinery�.However, on perusal of records it was observed that aMOMwas agreed between BHEL and the Company on15.11.2016 and 16.11.2016 to overcome the outputshortfall problem of LakwaWaste Heart Recovery Plant(LWHRP). In the said meeting it was decided to segre-gate responsibility to overcome the problem by allocat-ing cost to both the parties. The aforementioned ex-penditure fell under the scope of work of BHEL and theamount was required to be reimbursed by BHEL. Butthe Company has booked such expenditure in its State-ment of Profit and Loss and as a result of which Profitshave been understated andCurrent financial assets hasbeen understated by Rs. 9.90 lakhs.

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Necessary rectificationwill be done in FY 2018-19

The issue of financial reconciliation betweenAPGCL and BHEL officials is yet to settle.Pending activities to be done by BHEL andoutstanding payment to be released to BHELare yet to be finalised. So, the captioned ex-penditures were charged to the Statement ofProfit and Loss. However, necessary rectifi-cation will be done in FY 2018-19


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XXI. PROVISIONS, CONTINGENT LIABILTIES ANDCONTINGENT ASSET

Further, as mentioned in para V above the Companyhas not booked any liability towards interest for delayedpayment instead the company has shown the entireamount payable to AGCL and OIL by way of footnotesunder the head Contingent Liabilities without deductingliabilities recognized in the accounts.

No suit register, if any maintained as such we could notverify whether any suit against the company is pendingand amount involved therein.

No register of contingent liability and /or of capital com-mitment, if any maintained is maintained and no suchsum is shown as contingent liability and capital com-mitment by the company where huge capital commit-ment was outstanding as at 31/03/2018 in respect ofongoing projects of NRPP, LRPP, LWHRP, NWHRP,MSHEP, LKHEP etc. quantification of which cannot bedone by us for want of details.

Therefore, in our opinion the requirements of INS-AS:37 have not been complied.

XXII. CASH FLOW STATEMENT

The Company has adopted indirect method for prepa-ration of Cash flow statement and in the indirect methodthe starting point is profits. But, since due to non-com-pliances of IND-AS the profits requires certain adjust-ments and needs to be restated and hence we cannotcomment whether the said cash flow statement repre-sent the true and fair view of cash flows of theCompany

XXIII. NON CURRENT ASSETS HELD FOR SALEAND DISCONTINUED OPERATIONS

The operation of the BTPS & CTPS units were discon-tinued even before taken over from erstwhileASEB andAmguri TPP &Dhansiri HEPwere never commissionedbut expenses and related assets & liabilities of these


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discontinued units are included in expenses and as-sets & liabilities of the company along with that of con-tinuing operational units. As such no profit & loss of thediscontinued operation is ascertained separately andvalue of assets & liabilities of these units are not statedseparately. Further, disclosure as required to be madeunder IND-AS-105 issued by the Institute of CharteredAccountants of India are also not made. Further profit/loss from discontinuing operation need to be shownseparately in statement of profit & loss per schedule IIIto Companies Act, 2013 and Ind AS - 1 but the same isnot done and all the expenses of these discontinuedunits are booked under respective heads of account.As details of expenses, asset & liabilities of these unitsare not furnished; therefore, we could not quantify thesame and ascertain its impact on the financial state-ment of the company.

XXIV. IMPAIRMENT OF ASSETS

The company has adopted the policy of determinationof impairment loss and charging the same to the state-ment of profit & loss and the same is spelt out in policyno. M of significant accounting policies.

There are indication that asset of company might haveimpaired as the company has undertaken replacementpower project for both of its main producing units viz.LTPS, NTPS and CTPS is shut down long ago but noexercise is carried out to find whether there is any im-pairment loss or not and hence it could not be ascer-tained whether any impairment loss need to be pro-vided. Therefore, the mandate of IND-AS: 36 asAS-28has not been complied.

APGCL on indication of impairment has al-ready floated tender for valuation and verifi-cation ofAssets in FY 2018-19 and bid evalu-ation for valuer selection is in process.On completion of the valuation and verifica-tion, necessary adjustment with respect toimpairment shall be done.The statutory auditor has also mentioned thesame in its comments on Para VII & X. Assuch, no exercise carried out byAPGCLdoesnot arise.

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Sd/-

(V. K. Pipersenia)Chairman


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C. S. SHARMA&COCOMPANY SECRETARITES

CSCSCSCSCS 511, PARMESHWARIBUILDING, 5THFLOOR,CHATRIBARI,GUWAHATI-781001 (ASSAM)

Ph. 0361-2733091 (O)Mob : +91-98646-32927 (M)

Email : [email protected]

ANNEXURE - 6

SECRETARIAL AUDIT REPORTFOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2018Pursuant to section 204(1) of the Companies Act, 2013 and

Rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014]

To,The Members,Assam Power Generation Corporation Limited,( CIN-U40101AS2003GC007239)Bijulee Bhawan, Paltanbazar,Guwahati-781006

We have conducted the secretarial audit of the compliance of applicable statutory provisions and theadherence to good corporate practices by Assam Power Generation Corporation Limited, (herein-after called the company). Secretarial Audit was conducted in a manner that provided us a reasonablebasis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

We report that :a. Maintenance of Secretarial records is the responsibility of the management of the Company. Ourresponsibility is to express an opinion on these secretarial records based on our Audit.

b. We have followed the Audit practices and processes as were appropriate to obtain reasonableassurance about the correctness of the contents of the secretarial records. We believe that theprocesses and practices, we followed provide a reasonable basis for our opinion.

c. We have not verified the correctness and appropriateness of the financial statement of the Company.

d. The compliance of the provisions of the Corporate and other applicable Laws, rules, regulations,standards is the responsibility of the management. Our examination was limited to the verifica-tions of procedures on test basis.

e. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor ofthe efficacy or effectiveness with which the management has conducted the affairs of the Com-pany.

Based on our verification of the Company�s books, papers, minute books, forms and returns filed andotherrecords maintained by the company and also the information provided by the Company, its officers,

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agents and authorized representatives during the conduct of secretarial audit, we hereby report that inour opinion, the company has, during the audit period covering the financial year ended on 31st day ofMarch, 2018 complied with the statutory provisions listed hereunder and also that the Company hasproper Board-processes and compliance-mechanism in place to the extent, in the manner and subjectto the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed and other records main-tained by Assam Power Generation Corporation Limited (�The Company�) for the financial year endedon 31st March, 2018 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made thereunder and the Secretarial Standardsissued by the Institute of Company Secretaries of India.

(ii) The Securities Contracts (Regulation) Act, 1956 (�SCRA�) and the rules made thereunder.-Notapplicable to the Company.

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under; Not appli-cable to the Company.

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to theextent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Bor-rowings; Not applicable to the Company.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board ofIndiaAct, 1992 (�SEBIAct�) :-

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)Regulations, 2011; (Not applicable to the Company)

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;(Not applicable to the Company)

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)Regulations, 2009; (Not applicable to the Company)

d) The Securities and Exchange Board of India (Employee Stock Option Scheme and EmployeeStock Purchase Scheme) Guidelines, 1999; (Not applicable to the Company)



Ph. 0361-2733091 (O)Mob : +91-98646-32927 (M)


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e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008; (Not applicable to the Company)

f) The Securities and Exchange Board of India (Registrars to an Issue and Share TransferAgents)Regulations, 1993 regarding the Companies Act and dealing with client;(Not applicable tothe Company)

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;(Not applicable to the Company) and

h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Notapplicable to the Company)

Compliance/processes/systems under other laws applicable to the Company particularly in respect ofElectricity ct, 2003 and rules made there under have been got verified on the basis of random sampling/checking.

We were not required to examine compliance of the following :-

The Listing Agreements as the Company is not listed on the stock exchange.

During the period under review the Company has complied with the provisions of the Act, Rules, Regu-lations, Guidelines, Standards, etc. mentioned above.

We further report that:-The Board of Directors of the Company is duly constituted with proper balance of Executive Directors,Non-Executive Directors, Nominee Directors, Independent and Woman director as per requirement ofthe Act/or as per the notification of Govt. of Assam. The changes in the composition of the Board ofDirectors that took place during the period under review were carried out in compliance with the provi-sions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings and agenda and detailed noteson agenda were duly sent. A system exists for seeking and obtaining further information and clarifica-tions on the agenda items before the meeting and for meaningful participation at the meeting.



Ph. 0361-2733091 (O)Mob : +91-98646-32927 (M)


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Majority decision is carried through while the dissenting member�s views were captured and recordedas part of the minutes.

We further report that there are adequate systems and processes in the company commensuratewith 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 the company had no specific events/actions which ishaving a major bearing on the company�s affairs in pursuance of the above referred laws, rules, regula-tions, guidelines, standards.

We further report that during the audit period there were no instances of:(i) Public/Right/Preferential issue of shares / debentures/sweat equity, etc.

(ii) Redemption / buy-back of securities

(iii) Merger / amalgamation / reconstruction, etc.

We further report that this report is to be read in concurrence of the statutory audit report for theperiod under audit.



Ph. 0361-2733091 (O)Mob : +91-98646-32927 (M)


PLACE:GUWAHATIDATE: 12.02.2019

FOR C. S. SHARMA & CO.COMPANY SECRETARIES

Sd/-(CHANDRASHEKHARSHARMA)

PROPRIETORACS19157

C. P. NO. 6819

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ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THEFINANCIAL YEAR 2017-18

ANNEXURE- 7

1. A brief outline of the company�s CSR policy, including overview of projects or programs proposed tobe undertaken and a reference to the web-link to the CSR policy and projects or programs:

Corporate Social Responsibility (CSR) Policy of Assam Power Generation Corporation Limited(APGCL) encompasses the Company�s philosophy for delineating its responsibility as a corporatecitizen and lays down the guidelines and mechanism for undertaking socially relevant programs forwelfare and sustainable development of the community at large.

This Policy shall apply to all CSR initiatives and activities taken up by the Company at the Company�sareas of operations and also within the State of Assam and in any other parts of thecountry, for the benefit of the different segments of the society provided that the preference shall begiven to the local areas and areas where the Company operates for undertaking the CSR activities.

In alignment with vision of the Company, APGCL, through its CSR initiatives, shall continue to en-hance value creation in the society and in the community in which it operates, through its services,conduct and initiatives, so as to promote sustained growth for the society and thecommunity.

The CSR Projects and Programmes undertaken will be within the broad frame work of Schedule VIIof the Companies Act, 2013 and will be identified and funds allocated on a yearly basis, as per theneed assessment specific to the location, target beneficiary and agency partnering for the implemen-tation.

The CSR Policy may be accessed on the Company�s website: http://www.apgcl.org

2. The Composition of the CSR Committee :The CSR committee as per the Companies Act, 2013 consisted of Smti Z. R. Ahmed as the Chair-person, Shri T. Nahardeka, Shri Samir Baruah and Shri A. K. Mitra as the members as on the 31stMarch, 2018.

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3. Average net profit of the company for last three financial years:Rs.7,34,48,040/-.

4. Prescribed CSR Expenditure (two percent. Of the amount as in item 3 above):Rs.14,68,961/-

5. Details of CSR spent during the financial year:

(a)Total amount to be spent for the financial year: Rs.14,68,961/-(b) Amount unspent, if any: Rs.14,68,961/-

(c) Manner in which the amount spent during the financial year is detailed below :

6. In case the company has failed to spend the two per cent. of the average net profit of the last threefinancial years or any part thereof, the company shall provide the reasons for not spending theamount in the Board report:

The Company was not able to spend 2% of its average net profit for the last three financial yearsas required under the Companies Act, 2013. The Company could not spend the money as suit-able projects could not be identified in 2017-18.

7. Responsibility statement of the CSR Committee that the implementation and monitoring of theCSR Policy, is in compliance with CSR objectives and Policy of the company.

The CSR Committee of the Company hereby confirms that the implementation and monitoring ofCSR Policy, is in compliance with CSR objectives and Policy of the Company.

1 2 3 4 5 6 7 8SlNo.

CSRProject oractivityidentified.

Sector in whichthe project iscovered.

Projects or programs(1) Local area or other(2) Specify the Stateand District whereprojects or Programswas undertaken

Amount Outlay(Budget) Projector Program wise

Amount spenton the projectsor programsSub- heads:(1) Directexpenditure onprojects orprograms(2) Over-heads

Cumulativeexpenditure upto the reportingperiod.

Amount spent:Direct ort h r o u g himplementing agency.

1 NIL NIL NIL NIL NIL NIL NIL


Sd/-

(A.S.Purohit)Chairperson CSR Committee

Sd/-

(Nitya Bhusan Dey)Director

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TO,THE MEMBERS OFTHEASSAM POWERGENERATION CORPORATION LIMITEDGUWAHATI

REPORT ON THE FINANCIAL STATEMENTSWe have audited the company�s standalone Ind-AS financial statements of THEASSAM POWER GEN-ERATION CORPORATIONLIMITED, which comprise of the Balance Sheet as at March 31, 2018, andthe Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statementand the Statement of Changes in Equity for the year then ended, and a summary of significant account-ing policies and other explanatory information (hereinafter referred to as �the standalone Ind-AS FinancialStatements�).

.MANAGEMENT�S RESPONSIBILITY FOR THE STANDALONE IND-AS FINANCIAL STATEMENTS

The Company�s Board of Directors is responsible for the matters stated in section 134(5) of the Compa-niesAct, 2013 (�theAct�) with respect to the preparation of these standalone Ind-AS financial statementsthat give a true and fair view of the financial position, financial performance including other comprehen-sive income, cash flows and changes in equity of the company in accordance with the accounting prin-ciples generally accepted in India, including the Indian Accounting Standards (Ind-AS)prescribed undersection 133 of the Act.

This responsibility also includes maintenance of adequate accounting records in accordance with theprovisions of theAct for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies; making judgmentsand estimates that are reasonable and prudent; and design, implementation and maintenance of ad-equate internal financial controls that were operating effectively for ensuring the accuracy and complete-ness of the accounting records, relevant to the preparation and presentation of the standalone Ind-ASfinancial statements that give a true and fair view and are free from material misstatement, whether dueto fraud or error.

AUDITOR�S RESPONSIBILITYOur responsibility is to express an opinion on these standalone Ind-AS financial statements based on ouraudit.

We have taken into account the provisions of theAct, the accounting and auditing standards and matterswhich are required to be included in the audit report under the provisions of the Act and the Rules madethere under.

AUDITOR�SREPORT

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We conducted our audit of the standalone Ind-AS financial statements in accordance with the Stan-dards on Auditing specified under section 143(10) of the Act. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assurance about whetherthe standalone Ind-AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe standalone Ind-AS financial statements. The procedures selected depend on the auditor�s judg-ment, including the assessment of the risks of material misstatement of the standalone Ind-AS finan-cial statements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal control relevant to the Company�s preparation of the standalone Ind-AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate in the circum-stances. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company�s Directors, as well as evaluatingthe overall presentation of the standalone Ind-AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour qualified audit opinion on the standalone Ind-AS financial statements.

BASIS FOR QUALIFIED OPINION

I.IND-AS -INDIAN ACCOUNTING STANDARDS

The Company did not comply with the requirements of following Ind-AS IndianAccounting Standard andSchedule III in its entirety as laid down by ICAI and notified under The Companies Act, 2013 whilepreparing & presenting its standalone Ind-AS financial statements :IND-AS-101: First-timeAdoption of IndianAccounting Standards;IND-AS-1: Presentation of Financial Statements;IND-AS-8: Accounting Policies, Changes in Accounting Estimates and Errors;IND-AS- 16: Property, Plant and Equipment;IND-AS-19 &AS 15 : Employee Benefits;IND-AS-20: Accounting for Govt. Grants and Disclosure of Govt. Assistance;IND-AS-32: Financial Instruments;IND-AS-36 & AS 28: Impairment of Assets;IND-AS-37: Provisions, Contingent Liabilities and Contingent Assets;IND-AS-105: Non Current Assets Held for Sale and Discontinued Operations;IND-AS-12: Income Taxes; andIND-AS-24: Related Party Disclosures

II. CAPITAL RESERVECapital Reserve includes the Government Grant received from State Govt during the year. TheCompany has classified this sub-head under the head �Other Equity� in its Balance Sheet withregard to letter no.ASEB/ACT/FIN/87/Pt-VI/35 dated 12.11.2008 wherein it is stated that Govern-

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ment grants towards cost of capital assets are contribution of the owner (i.e. State Govt.) towardscapital of the Company and will be converted to equity in future. During the year, the Companyreceived Grants from Govt. Of Assam in respect of following projects:Sl. No. Name of the Project Amount (in Rs Lakhs)

1. LRPP 292.002. Lower Kopili Hydro Electric Project 15000.003. Development of Amguri Solar Park 2641.004. Myntriang Small Hydro Electric Project fromAIFA 1191.66

Total 19124.66

On our verification, it appeared that the company does not maintain project wise details of ex-penses. Therefore, it is not possible for us to comment on the exact amount of grant utilised.

III. BORROWINGS

A) SECURED LOANPFCL LOANThe company avails loan fromPFCL for its various projects/ schemes, the details of which areas under:(Rs. In lakhs)

Project/Scheme No. Of Loan O/S as on Terms of31.03.2017 repayment

KLHEP 62102002 3128.52 MonthlyR&M-II LTPS 62404001 731.37 QuarterlyLWHRP 62401001 6368.46 QuarterlyNRPP 62401003 31173.72 QuarterlyTotal 41402.07

As per Schedule III of The Companies Act, 2013 the amount of instalments payable in next twelvemonths from the Balance sheet Date shall be classified under the Head Other Current Liabilities �Current Maturities of Long Term Debt. But the said Disclosure requirements have not been dulycomplied as a result of which Borrowings has been overstated and Other current liabilities havebeen understated by Rs.2169.21 lakhs.

B) UNSECURED LOANGOVT LOANThe company avails loan from State Govt for various projects under state plan. No documentexcept the sanction letter of Government in respect of Govt Loans received during the year wasproduced during audit. As reported no agreement was executed for the Govt. Loan and hence wasnot furnished before audit. So, we could not verify the terms & conditions of loan and the discrepan-

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cies if any. However, as reported the company has not started repayment of any due amount asstipulated.IND-AS: 101: First-timeAdoption of IndianAccounting Standardsmandates that a first time adopterof IND-AS shall classify all Govt. Loans received as a financial liability or an equity instrument inaccordance with IND-AS:32.The Company hence failed to comply the IND-AS.

As stated above the Company is not repaying loans to GOA and consequently making provisionsfor penal interest in its books of accounts. During the year under audit the Company has bookedan amount of Rs.871.00 lakhs against penal interest. It is pertinent to mention that theAERC doesnot allow/ consider, any penal interest amount paid by the Company to the suppliers/ vendors/lenders, for determination of tariff .Hence, the Company may have to absorb all penal interestamount payable to GOA as it may not be realisable through tariff as revenue.

Further, it was observed that the Company has made a provision of Rs.871.00 lakhs against penalinterest for non repayment of Loan to Government ofAssam. On verification it was found that therewas calculation error and penal interest amounting to Rs. 836.96 lakhs should have been booked.As a result of which there is an understatement of profit of Rs. 33.70 lakhs and overstatement ofCWIP to the tune of Rs.0.34 lakhs and corresponding overstatement of �Other Financial Liabili-ties� amounting to Rs. 34.04 lakhs.

ADB LOANThe Government of India (�GOI�) has entered into loan agreement with the Asian DevelopmentBank (�ADB�) on 20.02.2015 for replacement of 4X15 MW open cycle turbine generators with 70MW Gas Engines at Lakwa on the basis of a framework financing agreement dated 13.05.2014between the GOI and ADB, whereby the ADB has agreed to provide a multi-tranche financingfacility to the GOI for purposes of financing projects under the Assam Power Sector InvestmentProgram

The Company is treating the amount received from ADB (Asian Development Bank) at par withamount received from Government from Assam (GOA). The funding pattern for the same is con-sidered in the ration 90:10, where 90% of the fund received is treated as Grant and remaining 10%is treated as loan. Consequently, the Company is providing interest on the loan component @10% p.a. at par with loan from GOA.

As per Schedule III of The Companies Act, 2013 the amount of instalments payable in next twelvemonths from the Balance sheet Date shall be classified under the Head Other Current Liabilities �Current Maturities of Long Term Debt. But the said Disclosure requirements have not been dulycomplied in both the cases of Govt. Loan andADB Loan as a result of which Borrowings has beenoverstated and Other current liabilities has been understated.

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IV. OTHER NON CURRENT LIABILITIESGPFA sum of Rs.6530.88 lakhs is shown under the above head which represents the amount ofsubscription, GPF Advance made; recovery of such advance and final withdrawal of GPF of theemployees of its erstwhile organisation ASEB who were absorbed by APGCL and interest provi-sion made thereon. But, due to non inclusion of the name of APGCL in the schedule to the Provi-dent Fund Act, 1925 and non- approval of the APGCL Trust Regulation and APGCL GPF Rules2011 by the Govt. Of Assam, the above amount is still lying under the above head and is beingused by the Company and no specific investment of the same is made. Also the learned AERChad directed the Company to maintain separate account for the amounts received from the em-ployees towards provident fund & its utilization to be duly audited by statutory audit but the sameis not followed.

Further, employee wise liability of GPF as on 31.03.2018for the purpose of verification of liabilityshown in the books of accounts could not be furnished to the audit as a result of which we cannotcomment on the correctness of GPF liability.

Furthermore, the comments made by the Comptroller and Auditor General Of India on the ac-counts of the Company for the year ended 31.03.2017 with regard to excess creation of intereston GPF amounting to Rs. 83.84 lakhs has not been rectified in the accounts for the year underaudit.

IV. TRADE PAYABLE

Trade Payable represents liability towards OIL&GAIL for supply of fuel to the power stations of theCompany at Lakwa and Namrup and liability towardsAssamGas Company Ltd. (AGCL) for trans-portation of Gas. The total outstanding amount payable to these suppliers as per the books ofaccounts stood at Rs.4004.20 lakhs as on 31.03.2018.The balance apart from GAIL needs to bereconciled and actual liability shall be booked in the books of accounts.

Further, the amount shown by the Company as contingent liabilities to OIL and AGCL by way offootnotes to the financial statements in addition to the amount booked as trade payables is notcorrect. The contingent liabilities have been overstated by Rs. 2589.22 Lakhs.

(Figures in Lakhs)

Supplier Balance booked Balance shown by Balance shown Differenceby the company in the Company as by Supplierbooks of account Contingent Liabilities

AGCL 1773.26 6503.00 6503.00 1773.26OIL 1979.95 22168.00 23332.00 815.95

Total 2589.22

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Furthermore,As per the agreement executed on 22/03/2003 betweenAGCLand erstwhileASEB,the Board required to pay transportation cost of 80% of the monthly committed Consumption onthe basis of daily booked quantity i.e. 0.80 MMSCMDwith OIL but as per the agreement executedbetween OIL andAPGCL executed on 28/11/2007, the DCQ and MGQwere only 0.66 MMSCMD& 0.528 MMSCMD respectively. Thus, due to the difference in DCQ & MGQ in both the agree-ments the APGCL is unnecessarily paying MDC to the AGCL which could have been avoided.Refer to para no (XVIII) below.

V. OTHER CURRENT LIABILITIES

A) PROVISION FROMEMPLOYEEBENEFITS

Employees� contribution and recoveries � Rs. 150.96 lakhsIncome tax deducted at source from staff payment Rs.18.63 lakhsLIC Premium Recovered Rs.0.21 lakhsProfession tax recovered Rs. 10.32 lakhsMiscellaneous recoveries from staff Rs.121.65 lakhsCumulative Time Deposit Recovered Rs. 0.15 lakhs

The liability arising under the above head is in respect of various statutory dues and recoveriesmade from the salary of the employees which is required to be deposited/ paid to the respectiveentities which the company failed .However, no proper record was made available as such weare unable to comment whether the company is regular in making payments of statutory duesand also whether any long outstanding entries appear under this head.

B) OTHER PAYABLES

(i) Deposits and Retention from Suppliers and Contractors � Rs. 8474.96 LakhsThe details of liability as shown under the above head were not available during audit.

(ii) Liabilities For Capital Supplies/Works- Rs. 4497.85 lakhsLiabilities for Supplies Works (O&M) - Rs. 1084.57 lakhsNo age wise, party wise, bill wise breakup of the above two heads was furnished. The companyhas not maintained any sub ledger maintained as such we could not verify whether the liability islong outstanding requiring write off if any and its impact on the financial statement. Further, nobalance confirmation from the parties was produced for verification.

(iii) Other liabilities- Rs. 2006.79 lakhsThe following amount are shown under the above headRailway Credit Notes-Coal - Rs.1851.15lakhsService-tax deducted at source on payment to contractors - Rs.00.63 lakhs

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Income-tax deducted at source on payment to contractors - Rs.50.64 lakhsLiability for Assam Sales Tax (VAT) -Rs. (0.79) lakhsOther miscellaneous liabilities - Rs.105.15lakhs

Sub Ledger of the above heads, if any, maintained was not produced for verification. Out of above,Railway Credit Note-Coal & Other Miscellaneous Liability of Rs.1851.15lakhs and Rs.104.58 lakhsare long outstanding and are brought forward balances.

Also out of the remaining liability which are statutory dues and required to be paid within stipulatedtime the following amounts are last year closing outstanding still due to be paid Income-tax de-ducted at source on payment to contractors - Rs.40.63 lakhs

For want of information we are unable to comment whether the company is regular in makingpayments of statutory dues and also whether any other long outstanding entries appear under thishead.

(iv) Staff Pension Fund (DCP) - Rs. 49.76 lakhsThe Liability appearing under this head in respect of the pension contribution of the new employ-ees with the Pension Trust namely NSDL. The employer and employees contribution generallytransferred to this head and in some cases the amount remaining to be contributed in respect ofthe employees in whose cases �PRAN� are not allotted generally kept under this head. However,as per relevant records it was noticed that liability outstanding as on 31.03.2018 was Rs. 39.15lakhs. Thus, the liability is overstated by Rs. 10.61 lakhs.

VII. FIXED ASSETSa) Our comments regarding fixed asset register not maintained properly and physical verification of

fixed assets not done are already pointed in the audit report of earlier years and the same irregu-larities are still persisting for the year under audit also. However, the management on the basis ofour comments has initiated action in this regard for valuation and verification of fixed assets andprocess for floating of tender for the same is in final stages.

b) The company during the year reimbursed telephone expenses to the tune of Rs. 1.46 lakhs but onour verification it was observed that the company had erroneously capitalized the said expendi-ture under the head �OFFICE EQUIPMENT � Telephones and EPBX�. As a result of which theprofit has been understated and fixed asset overstated by Rs.1.46 lakhs.

VIII. CAPITAL WORK IN PROGRESSa) During the year under audit, the board of the Company took a decision in its 66th Meeting held on

27.06.2017 to abandon its Lungnit Project vide its resolution no. 21d. But, the expenditure incurredon the said project is still included in the head �CAPITAL WORK-IN-PROGRESS�. Thus, thecompany has not complied with the requirements of relevant IND AS. Further, due to want ofrequisite information, we could not comment on the impact of such departure on financial state-ments of the Company.

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b) The company is coming up with a solar park at Amguri, Assam with a generation capacity of 70MW. The company during the year had paid some amount as land compensation to land ownersfor acquisition of land and capitalized the said amount in its books under the head �CAPITALWORK-IN-PROGRESS� but other expenses incurred under several other like professionalconsultancy, vehicle hiring, salaries and wages, etc. has not been capitalized rather the samehas been booked as expenses. Thus, the profit of the company is understated and capital workin progress, too have been understated. However, due to want of information we could not quan-tify the exact impact on the financial statements.

IX. OTHER NON-CURRENT ASSETSNo party wise sub ledger maintained and furnished before audit as such we cannot comment onthe same.

X. INVENTORYa) The Company has recorded capital spares in its previous GAAP financial statements as a part

of inventory. However, on transition from previous GAAP to IND-AS regime, the Company hascontinued to treat capital spares as inventories where as INDAS � 16, Property, Plant and Equip-ment requires spare parts to be recognised in accordance with IND AS 16, when they meetdefinition of property, plant and equipment. Further, INDAS� 101 requires aCompany to recognisean asset whose recognition is required by the IND AS on the date of transition. Thus, the com-pany has clearly not complied with the requirements of both the IND-ASs.

b) Similarly, our comments with regard to valuation and physical verification of inventories as high-lighted in our audit reports for pervious financial years are still persisting. However, the manage-ment on the basis of our comments has initiated action in this regard for valuation and verifica-tion of inventories and process for floating of tender for the same is in final stages.

Further, the Company has made a provision against stock for Rs. 3203.05 Lakhs which is beingcontinued as such since last several years and no basis for such provision could be produced tothe audit. Therefore, we cannot comment on such provision.

c) Material Division was set up as per organisational restructuring of APGCL, to enable the Com-pany to run smoothly and efficiently. Materials are issued from materials division to other sub-divisions on the basis of requisitions of materials/spares after approval fromAGM of the respec-tive sub � divisions.

- In this regard it was noted that major over hauling work ofGT#3 of Lakwa Thermal PowerStation was carried out in FY 2016-17. For the said work, some capital spares amountingto Rs. 639.80 lakhs were brought fromNamrup Thermal Power Station and the said amountwas charged to the Statement Profit and Loss under the Head �repair and maintenanceof Plant and Machineries�. However, during the verification we noticed that an amount ofRs. 585.06 Lakhs was booked as expense under the head �repair and maintenance ofPlant and Machineries� during the year


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under audit. On perusal of relevant records, it was found that said expenditure was bookedagainst the capital spares brought from NTPS during the previous year. Thus, the sameexpenditure has been booked twice and as a result of which profit has been understatedby Rs. 585.06 lakhs and stores have been understated by the said amount.

- Amajor overhauling work of GT#6 of Lakwa Thermal Power Station was carried out duringthe year under audit by the contractor M/s Cortech Energy and as per the completion cer-tificate issued by the GM, LTPS; the said work was completed on 10/01/2017. The materi-als/spares for the overhauling were procured from M/s BHEL GE Gas Turbine ServicesPvt. Ltd. During the year under audit, the company has booked expenditure to the tune ofRs. 783.24 on account of materials. On perusal of records it was found that materialsamounting to Rs. 1043.58 lakhs were utilized during the overhauling work but expenditureof Rs. 848.73 lakhs only was booked in the accounts against materials. Therefore, materi-als worth Rs. 194.85 lakhs though utilized for the overhauling work was not booked in theaccounts. Thus, resulting in understatement of profit and overstatement of stores to thetune of Rs. 194.85 lakhs. Further, it was also noted that the said materials and spares wereutilized in the FY 2016-17 but expenditure was booked partly in FY 2016-17 and FY 2017-18.Therefore, it can be concluded that the internal control over stores is very weak and assuch position of stores is not reflected accurately in the financial statements.

- The company has shown an amount of Rs. 554.02 lakhs paid to BHEL Kolkata and SavairEnergy Ltd. as purchase of materials and debited the head Inventories. However, on pe-rusal of relevant records, it was noticed that above payment was made as advance andmaterials were received in the current year i.e. 2018-19. Thus, the inventories have beenoverstated by Rs. 554.02 lakhs and Advance to Suppliers has been understated bythe said amount.

e) At KLHEP unit of the company is following the practice of booking the amount of spares/materialsas expenditure to the Statement of Profit And Loss as and when the same is received at siteinstead of when the same is actually put to use which is the normal practice followed by otherunits of the company.

XI. BALANCEWITH BANK

Account Balance statements of bank accounts were produced before audit and verified How-ever, there are old non reconciled entries appear in the bank reconciliation statement for which nosatisfactory explanation was received from the company. For instance, Following entries havebeen found in the BRS of SBI, NTPP Branch which are outstanding for more than 3 months.

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Ch. Number Date Amount

723787 29-03-2017 60.00

723814 04-04-2017 20.00

723875 24-04-2017 23889.00

723945 17-05-2017 13392.00

723694 24.05.2017 1952.00

724733 28.08.2017 3949.00

371681 21.12.2017 45507.00

Similarly, in BRS of other bank accounts of the Company also it was found that few outstandingentries for more than 3 months are appearing.

XII. FIXED DEPOSIT WITH BANKNo sub-ledger for Fixed Deposits is maintained by the company. It maintains only one statementof Fixed Deposits which is not complete in all respect.

As per the requirement of Sch III of the Companies Act 2013 it is required to be disclosed sepa-rately in respect of Fixed Deposit held as margin money or security against borrowing, guarantee,other commitment. It should be disclosed separately which is not disclosed.

On verification of Balance Confirmation obtained from Banks relating to fixed deposits it wasnoted that there was huge difference between the amount of fixed deposit as per balance confir-mation certificate and amount appearing in books of accounts. Details of which are as follows

Balance as per Bank Confirmation Statement Rs.73196.79 lakhsBalance as per Books of Accounts Rs.72137.50 lakhsDifference Rs. 1059.29 lakhs

But no explanation for the difference amount was furnished before audit.

XIII. OTHER FINANCIAL ASSETS

Amount recoverable from ONGCL - Rs. 583.20 lakhsM/s ONGCL floated an open tender pertaining to sale of Gas from Banskandi and Bhubandarfields respectively in the Cachar District, Assam during December 2013. The company partici-pated in the said tender vide approval from boardmeeting dated 06.02.14 and the said tender wassuccessful. M/s ONGCL allocated the gas to the company vide its letter dated 17.10.2015. How-ever, the company subsequently raised certain issues regarding viability of the project. The saidobjections and issues were discussed threadbare in a meeting held between officials of M/s


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ONGCL and the MD of the Company along with other officials on 14.10.2016 at New Delhi.ONGCL�s comments on the issues raised were communicated to APGCL vide letter dated20.10.16 and reiterated by letter 01.12.2016 wherein they expressed their inability to consider theissues raised by the Company relating to time extension for gas off take and Gas price by statingthat these were biddable items and the company ought to have bid for this item after due dili-gence and proper project appraisal. Despite the clear communication from ONGCL, the Com-pany kept on raising these issues and consequently foreseeing no positive intentions from theCompany side to sign Gas Supply arrangements, ONCGL went ahead and revoke the Letter ofCredit for non-fulfilment of contractual obligations. The company has shown such amount asamount recoverable from ONGCL. But, in our opinion the recoverability of such is very remoteas the above shows that the Company raised issues regarding viability of project after gettingallotment letter from M/s ONGCL. This clearly shows that the company has not done properproject appraisal before participating in the tender and is prima facie at fault for not fulfilling itscontractual obligations. Thus, company should have made provision for the same in its books.

XIV. OTHER CURRENT ASSETS

Other Current Assets include Fuel Related Receivables & Claims {Railway claims for Coal},Advance recoverable fromContractors, Deposits, Miscellaneous Receivable, Prepaid Expensesand Inter Unit A/c �Closing Balance of Rs.747.91 lakhs, Rs.144.05 lakhs, Rs. 14.21 lakhs, Rs.9790.44 lakhs, Rs. 33.85 lakhs respectively consist of old outstanding carry forward balancewhich requires proper adjustment or write off after fulfilment of necessary formalities.

Inter unit A/c �Remittance to H.O. represents debit balance of Rs. 8.30 lakhs and Inter Unit A/c �Opening Balance consists of debit balance of Rs. 2.86 lakhs. As per the accepted accountingprinciples inter unit accounts maintained at head office and branches should be reconciled at theBalance Sheet date and should be squared off so that no balance exists in such accounts as onthe balance sheet date. However, in the books of the company there still exist the aforemen-tioned balances.

XV. REVENUE FROM OPERATIONS

Revenue from operation include sale of power to the APDCL. On perusal it is observed that noagreement of sale of power is executed betweenAPDCL&APGCLand the therefore, billing hasbeen continue to be as per agreement with the ASEB dt.19.07.2006. However, on the basis ofour comments in this regard in previous years also, the Company has taken necessary actionand Power PurchaseAgreement has been signed withAPDCL in the current year on 24.09.2018.Further, the balance of trade receivables is unverifiable as the balance confirmation has notbeen produced before audit.

On our verification it was observed that during the period of 01/04/2017 to 31/03/2018 the unitLTPS remained idle for insufficiency of fuel during the period for1585.75 hours and accordingly

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the production of energy suffered due to such idle time 25.614 MU. Similarly, during the period of01/04/2017 to 31/03/2018the unit NTPS remained idle for insufficiency of fuel during the period for3521.48 hours and accordingly the production of energy suffered due to such idle time 54.692MU.Hence the management should take corrective steps to avoid such loss.

XVI. OTHER INCOMEa) Other Income from Trading - Rs. 75.35 lakhs

During the year under audit, the Company under the Perform, Achieve and Trade (PAT) mecha-nism, launched by Bureau of Energy Efficiency (BEE) over achieved its target for LTPS and un-der-achieved its targets for NTPS. Consequently, the Company earned EScerts for over achievingits targets for LTPS and purchased EScerts for compensating under performance of NTPS. TheCompany sold and purchased Escerts through Indian Energy Exchange (IEX) and trading re-sulted in net gain of Rs. 75.35 lakhs. The Company levied GST on the sale of Escerts and raisedtax invoice for the same. The break-up of the tax invoice and calculation net gain are as follows :

S. No. Name of the Party Taxable Value GST Total Value

1. Uran Gas Power Station 3675000.00 441000.00 4116000.00

2. Suratgarh Super Thermal 25000000.00 3000000.00 28000000.00Power Station

3. Raichur Thermal Power 8411943.00 1009433.16 9421376.16Station

Total 37086943.00 4450433.16 41537376.16Less: Brokerage 976026.00

Sale Proceeds 36110917.00

Less: Purchase 28576320.00

Net Gain 7534597.00

However, on perusal of records it was observed that total GST liability on sales of Escerts was Rs.44.50 lakhs. But, the Company booked GST liability of only Rs. 34.41 lakhs in its books and paidthe same amount instead of Rs. 44.50 lakhs. From the above it appears that the Company has notbooked the difference amount of GST liability and a result thereof the �Provisions� has been under-stated by Rs. 10.09 lakhs. Further, the company has not furnished tax invoices for purchase ofEscerts and GST input paid on such purchases has not been taken in the books of accounts.

b) A battalion of CRPF has occupied staff quarters at Karbi Langpi (KLHEP), Lengery on rent. Thoughthe Company is raising the bill on monthly basis but the same is not booked in the books ofaccounts. The total arrears of rent up to 31.03.2018 amounted to Rs. 22.31 lakhs as a result ofwhich there is an understatement of income and current assets by that amount.


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XVII.COST OF MATERIAL CONSUMED

Cost of rawMaterial Consumed includesGas procured fromOIL, GAIL&AGCLand transporta-tion charges paid toAGCL.

a) TheCompany had entered into an agreement with OIL India Ltd. for supply of natural gas to itsunit at LTPS on 02.09.2015.As per the agreement the daily contracted quantity (DCQ) is 0.50MMSCMD and theMinimumGuaranteed Quantity (MGQ) is 80 percent of DCQ and as stipulatedin clause 4.03 of the agreement that if during any month the Seller i.e. OIL is unable to supply atthe off take point the MGQ of Gas, the Seller shall pay the Buyer the cost for the shortfall fromMGQ for that month at the rate prevailing during that month and the amount shall be adjustedfrom the next monthly bill. However, on scrutiny of bills raised by OIL it was seen that during theyear under audit the supplier supplied gas less than the MGQ in 6 months out of the 12 months.The details of the same are as follows:

Month Actual Qty Supplied MGQ Difference(in MMSCM) (in MMSCM) (in MMSCM)

April 2017 10.16 12.00 (1.84)

Nov 2017 11.98 12.00 (0.02)

Dec 2017 11.77 12.40 (0.63)

Jan 2018 0.92 12.40 (11.48)

Feb 2018 5.33 11.20 (5.87)

March 2018 10.84 12.40 (1.56)

TOTAL 51.00 72.40 (21.40)

Therefore, it is evident from the above that during half of the year the supplier did not suppliedeven the agreed MGQ and as a result of which the plant remained idle. Further, as per the agree-ment the Company has not raised claim to OIL for less supply of gas resulting therein under-statement of profit and overstatement of liability towards gas suppliers by the amount of claimwhich could not be quantified for want of information.

b) On scrutiny of records it was seen that, the minimum gauge pressure requirement of gas forPhase I GTs was 15 kg/cm2 and that of Phase II GTs was 20 kg/cm2 at LTPS. It could be seenfrom the agreement that, the supply gas pressure from M/s GAIL and M/s AGCL was low pres-sure gas and also as the plant location was away from the oil fields, the gas need to be com-pressed to boost its pressure to the required range to be able to use it in the gas turbines.Therefore, an additional load of nine electric motor drive gas compressors were used on analternate basis for meeting gas pressure requirements at LTPS. The gas compressors installedat the power station are electric motor driven and consume huge amount of power. Due to the


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inclusion of energy consumed by gas compressors under the Station Auxiliary Energy Consump-tion (AEC); theAEC remained much higher than the approved norms and theAERC had admittedonly 5.50 per cent of the Station AEC during truing up of tariff.

Further, as per gas transportation agreement with M/s AGCL for Namrup Thermal Power Station(NTPS), it was agreed that the Company shall receive gas at gauge pressure of 10.54 kg/cm2from OIL�s off-take point. M/s AGCL shall boost its pressure and transport the gas by means ofAGCL�s own pipelines and deliver the same at the intake point of NTPS at a minimum pressure of15.12 kg/cm2 and a maximum pressure of 16.52 kg/cm2. As the gas transportation agreementwas as per the designed pressure requirement for the GTs, there was no requirement for boostingof the pressure. Thereby, resulting in cost advantages on account of energy consumption by thegas compressors. However, this aspect had not been considered in gas purchase agreement ofLTPS.

c) The Company had entered into an agreement with OIL for supply of natural gas to its unit at NTPSin April 2007. As per the agreement the daily contracted quantity (DCQ) of gas was fixed at 0.66MMSCMD. The agreement provided for payment of higher of actual charges of gas supplied or theMinimumGuaranteedQuantity (MGQ),whichwould be 80%of 0.66MMSCMD (i.e.0.528MMSCMD),in case NTPS is unable to uplift the DCQ for any reason.

The Company (erstwhileASEB) entered into an agreement withAGCL in March 2003 for transpor-tation of gas. The agreement provided for transportation of 0.8 MMSCMD of gas per day to NTPSand 80% of this quantity i.e. 0.64 MMSCMD was fixed for billing as Minimum Demand Charge(MDC). If drawl of gas is 80% or less of the contracted demand (i.e.0.64 MMSCMD), NTPS wouldpay transportation charges for 80% and no charges will be paid by NTPS for drawl of gas between80 to 100% of the contracted quantity i.e. 0.8 MMSCMD. Scrutiny of bills raised byAGCL revealedthat NTPS had been paying huge sums by way of MDC to AGCL. Moreover, when OIL, the seller,agreed to supply only 0.66MMSCMD per day of which only 0.528MMSCMDwasMGQ, the reasonbehind agreement for transportation of 0.80MMSCMDof gas, and payment for 0.64MMSCMDperday to AGCL cannot be comprehended. Had the DCQ and MGQ in both the agreements beensame, the Company could have avoided Rs. 68.42 Lakhs as payment towards transportationcost. Details of the same are as follows :

Month Actual Volume ofGas suppliedby OIL

(in MMSCM)

MGQ as perOIL�s agree-ment

(MMSCM)

MGQ as perAPGCL�sagreement(MMSCM)

MDC billraised byAGCL

MDC if MGQwouldhavebeen same

Difference

May 2017 10.565 16.368 19.84 4108983.00 2570887.00 538096.00June 2017 10.483 15.84 19.20 4556518.00 2800111.00 1756407.00Oct 2017 15.937 16.368 19.84 1994336.00 220339.00 1773997.00Jan2017 15.252 16.368 19.84 2344137.00 570139.00 1773998.00TOTAL 13003974.00 6161476.00 6842498.00


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XVIII. EMPLOYEEBENEFIT EXPENSE

The company has two categories of employees one being those who were in service of erstwhileASEB and became employee of the company on bifurcation and other category being employeesappointed by the company after its formation. As regard to employees of erstwhile ASEB thecompany is contributing @23.31% of basic pay plus D.A. to the pension trust for all post employ-ment benefit of those employees including pension, gratuity & leave encashment. But settlementof claim relating to P.F. & leave encashment is done by the company and is claimed from pensiontrust with a defined ratio of the past unfunded liability. Thus the contribution made for such em-ployees are in the nature of defined benefit plan and no actuarial gain or losses is ascertained &provided for. Further disclosures are required to be made under Accounting Standard No. AS- 15and IND-AS: 19 issued by The Institute of CharteredAccountant of India are not made. Due to nonaccounting of actuarial gain or loss & non availability of details of plan we could not ascertain itsimpact on the financial statement & profitability of the company. As regard other category of theemployees employed by the company it is making contribution towards national pension schemewhich is defined contributory plan. But for leave encashment no provision is made & no actuarialliability is ascertained.

As such the loss of the company is understated by understating long term liability to the extent ofactuarial amount of leave encashment payable for the service rendered during the year underaudit & in past year.

No proper explanation could be furnished before audit and hence we cannot comment on theemployee benefit cost incurred by the Company.

On perusal of relevant records, it was observed that salaries of Karbi Langpi Hydro ElectricityProject (KLHEP) for GPF employees for the month of March 2018 has been booked in the monthof April 2018 i.e. FY 2018-19. Thus, there is understatement of salaries to the tune of Rs. 13.11lakhs with corresponding understatement of Current Liabilities by Rs. 13.11 lakhs.

As per Section 21 0f the Contract Labour (Regulation and Abolition) Act, 1970, the principal em-ployer and contractor have responsibility to maintain registers and records of contract labours,work perform by them, wages and other particulars as specified in the rule. The Company how-ever is not maintaining any registers and records of contract labours and thus violating provisionsof Contract Labour((Regulation andAbolition)Act ,1970.

XIX. DEPRECIATION

As stated in para X above, due to non-recognition of capital spares as property, plant and equip-ment in terms of IND AS � 16, depreciation on the same has also not been charged resulting inunderstatement of expenses and overstatement of profit by the amount not charged as depreciation.


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Thus, calculation of depreciation is not proper and it does not reflect the true picture.

XX. OTHER EXPENSES

a) The Company had included in point 21 of the notes to the statement of profit and loss whereineffects of prior period incomes and expenses was shown in the head �Other Expenses�. Thecompany had passed journal entries for prior period incomes and reduced current year expensesand similarly passed journal entries for prior period expenses and enhanced current year ex-penses. But, since the Company adopted Indian Accounting Standards (IndAS) from year 2017-18 and the transactions were in the nature of prior period error/ omission, the same was requiredto be restated in the period of error/omission in accordance with Ind AS � 8, which was not done.

b) In the KLHEP unit of the Company, on perusal of bill passing register it was observed that 4 nos.Of bills amounting to Rs. 11.68 lakhs relating to monthly bills ofAMC of Dam has not been bookedin the accounts. Thus, resulting in overstatement of profits and understatement of Other CurrentLiabilities by Rs. 11.68 lakhs.

c) The Company has booked an expenditure amounting to Rs. 9.90 lakhs under the head �OtherExpenses � Repair and Maintenance of Plant and Machinery�. However, on perusal of records itwas observed that a MOM was agreed between BHEL and the Company on 15.11.2016 and16.11.2016 to overcome the output shortfall problem of Lakwa Waste Heart Recovery Plant(LWHRP). In the said meeting it was decided to segregate responsibility to overcome the prob-lem by allocating cost to both the parties. The aforementioned expenditure fell under the scope ofwork of BHEL and the amount was required to be reimbursed by BHEL. But the Company hasbooked such expenditure in its Statement of Profit and Loss and as a result of which Profits havebeen understated and Current financial assets has been understated by Rs. 9.90 lakhs.

XXI. PROVISIONS, CONTINGENT LIABILTIES AND CONTINGENT ASSETS

Further, as mentioned in para V above the Company has not booked any liability towards interestfor delayed payment instead the company has shown the entire amount payable toAGCLandOILby way of footnotes under the head Contingent Liabilities without deducting liabilities recognizedin the accounts.

No suit register, if any maintained as such we could not verify whether any suit against the com-pany is pending and amount involved therein.

No register of contingent liability and /or of capital commitment, if any maintained is maintainedand no such sum is shown as contingent liability and capital commitment by the company wherehuge capital commitment was outstanding as at 31/03/2018 in respect of ongoing projects ofNRPP, LRPP, LWHRP, NWHRP, MSHEP, LKHEP etc. quantification of which cannot be done byus for want of details.


� �[75]

Therefore, in our opinion the requirements of INS-AS: 37 have not been complied.

XXII. CASH FLOW STATEMENT

The Company has adopted indirect method for preparation of Cash flow statement and in theindirect method the starting point is profits. But, since due to non-compliances of IND-AS theprofits requires certain adjustments and needs to be restated and hence we cannot commentwhether the said cash flow statement represent the true and fair view of cash flows of the Company.

XXIII. NON CURRENT ASSETS HELD FOR SALE AND DISCONTINUEDOPERATIONS

The operation of the BTPS & CTPS units were discontinued even before taken over from erst-while ASEB and Amguri TPP & Dhansiri HEP were never commissioned but expenses and re-lated assets & liabilities of these discontinued units are included in expenses and assets & liabili-ties of the company along with that of continuing operational units. As such no profit & loss of thediscontinued operation is ascertained separately and value of assets & liabilities of these units arenot stated separately. Further, disclosure as required to be made under IND-AS-105 issued by theInstitute of Chartered Accountants of India are also not made. Further profit/loss from discontinu-ing operation need to be shown separately in statement of profit & loss per schedule III to Compa-nies Act, 2013 and IndAS - 1 but the same is not done and all the expenses of these discontinuedunits are booked under respective heads of account. As details of expenses, asset & liabilities ofthese units are not furnished; therefore, we could not quantify the same and ascertain its impacton the financial statement of the company.

XXIV. IMPAIRMENT OF ASSETS

The company has adopted the policy of determination of impairment loss and charging the sameto the statement of profit & loss and the same is spelt out in policy no. M of significant accountingpolicies.

There are indication that asset of company might have impaired as the company has undertakenreplacement power project for both of its main producing units viz. LTPS, NTPS and CTPS is shutdown long ago but no exercise is carried out to find whether there is any impairment loss or notand hence it could not be ascertained whether any impairment loss need to be provided. There-fore, the mandate of IND-AS: 36 as AS-28 has not been complied.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us,except for the possible effects of the matter describedin the Basis for Qualified Opinion paragraphs, the aforesaid standalone Ind-AS financial state-ments give the information required by theAct in themanner so required and give a true and fair


� �[76]

view in conformity with the accounting principles generally accepted in India. Further, a referenceis invited to note no 32 of the notes. on accounts of the financial statements of the Company,wherein it is stated that accounts have been prepared in accordance with Ind As and disclosuresthereon comply with the requirements of Ind AS. In view of aforesaid non-compliances of variousInd-ASs, the disclosure by the Company is incorrect to that extent.

a) in case of the of the Balance Sheet, of the state of affairs of the Company as at 31st March 2018;b) in case of Statement of profit and loss, of profit of the Company for the year ended on that date;c) in case of Cash Flow Statement, of cash flows of the Company for the year ended on that date; andd) in case of statement of changes in equity, the changes in equity for the year ended on that date.

EMPHASIS OF MATTER PARAGRAPH/OTHER MATTER

Attention is drawn to the following :a) As required under Sch III of The Companies Act, 2013 value of all imported spare parts and com-

ponents consumed during the year and the total value of all indigenous spare parts and compo-nents consumed and percentage of each to total consumption need to be furnished by way ofnote but no such disclosure is made whereas there is consumption of imported & indigenousspare parts.

b) The company has number of production units at different locations of the state in addition to circle,division & controller of movement, where accounting records are maintained and falls under thedefinition of branch office under the Companies Act, 2013 but no statutory branch audit of theseunits is conducted & no branch audit exemption order is obtained.

c) The terms & conditions of the vehicle hiring agreement are not being complied properly but aremoulded as per ease of operation.

d) No CLR registration has been done by the company in respect of the various contractual employ-ees deployed for their service.

Our opinion is not qualified in respect of this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor�s Report) Order, 2016 (�the Order�) issued by the CentralGovernment of India in terms of Section 143(11) of the Act, based on the comments in the audi-tors� reports of the company, we give in the Annexure �A�, a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable

As required by section 143 (3) of the Act, we report that:

a . We have sought and, except for the matters described in the Basis for Qualified Opinion para-graph, obtained all the information and explanations which to the best of our knowledge and beliefwere necessary for the purpose of our audit;


� �[77]

b. Except for the possible effects of the matter described in the Basis for Qualified Opinion para-graph above, in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books [and proper returns adequatefor the purposes of our audit have been received from branches not visited by us]

c. the Balance Sheet, Statement of Profit and Loss, Cash Flow Statement, Statement of Changesin Equity dealt with by this Report are in agreement with the books of account [and with thereturns received from branches not visited by us]

d. Except for the possible effects of the matter described in the Basis for Qualified Opinion para-graph, in our opinion, the Balance Sheet, Statement of Profit and Loss, Cash Flow Statementand Statement of Changes in Equity comply with the Indian Accounting Standards specifiedunder section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2013;

e. In terms of MCA Notification dated 05/06/2015 under section 462 of the 2013 Act, provisionsrelating to disqualification of directors under section 164(2) of the 2013Act for five years are notapplicable to Government companies.

f. With respect to the adequacy of the internal financial controls over financial reporting of theCompanyand theoperatingeffectivenessofsuchcontrols, refer toourseparateReport in �Annexure B�.

g. With respect to the other matters to be included in the Auditor�s Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to the explanations given to us

i) Necessary information has not been furnished in respect of other pending litigations existingas on the date of the financial statement and whether existence of such liability whether reportedor not have material impact on the financial statement also not stated and hence unable tocomment.ii)The Company did not have any long term contracts including derivative contracts for whichthere were any material foreseeable losses.iii) There is no amount required to be transferred u/s 125 of the Companies Act 2013 to theInvestor Education and Protection Fund and hence question of delay does not arise.

For P. K. Sharma & AssociatesChartered AccountantsFRN No. 316044E

CAPranjal Kr. Agarwal:: PartnerM. No. 303034

Place: GuwahatiDate: 01.10.2018


� �

ANNEXURE �A� TO AUDIT REPORT OF EVEN DATE

(REFERRED TO IN PARAGRAPH 7 OF OUR REPORT OF EVEN DATE)

(Referred to in paragraph of �Report on Other Legal and Regulatory Requirements� section ofour report of even date on the financial statements of The Assam Power Generation CompanyLimited for the year ended March 31, 2018)

Our reporting on the Order is based solely on our report to the extent considered applicable for reportingunder the Order in the case of the financial statements.

(i) In respect of the fixed assets of the Company :

a) No proper records showing full particulars, including quantitative details and situation of the fixedassets are maintained.

b) As reported the company does not have any policy of physical verification of fixed assets and hencequestion of adjustments of discrepancy if any does not arises.

(c) The title deeds of immovable properties are held in the name of the company except for land measur-ing 19 Bighas 1 Kathas 15 Lecha at Namrup Thermal Power Statiom, Namrup.

(ii) In respect of the inventories of the Company :

As explained to us, the company is conducting physical verification of inventories during the year end butthe same does not commensurate with the size and nature of the company. Also the discrepanciesnoticed during the physical verification are material but not adjusted in the books of accounts.

(iii) The company has not granted any loans, secured or unsecured, to companies, firms or other partiescovered in the Register maintained under Section 189 of the Companies Act, 2013. Accordingly subclause (a) (b) and(c) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, the company hascomplied with the provisions of section 185 and I86 of the Companies Act, 2013 In respect of loans,investments, guarantees, and security.

(v) According to the information and explanations given to us, the Company has not accepted any de-posits from the public.

(vi) According to the information and explanations given to us, the Company has made and maintainedbasic Cost records as has been prescribed as per The Companies (Cost Records and Audit) Rules,

[78]


� �

Name of Statute(Nature of dues)

Period to whichthe amountrelates

Forum where dispute is pendingHighCourtCommissi-

onarateAppellate authori-ties & Tribunal

Total Amount

Sales Tax(Tax/Penalty/Interest)TotalThe Central Excise Act(Tax/Penalty/Interest)TotalCess on PowerGenerationTotal

[79]

2014 specified by theCentral Government of India under Section 148 of theCompaniesAct, 2013.How-ever, we have not made a detailed examination of the records with a view to determine whether theyare accurate or complete.

(vii) According to the information and explanations given to us and the books of account examined byus in respect of statutory dues of the Company:

a) The company has generally been regular in depositing undisputed statutory dues, including Provi-dent Fund, Employees� State Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, CustomsDuty, Excise Duty, Value Added Tax, Cess and other material statutory dues applicable to companyduring the year. There were no undisputed amounts payable by the company in respect of the afore-said statutory dues outstanding as at March 31, 2018 for a period of more than six months from thedate they became payable except the following :

Service Tax Rs. 0.63 lakhsIncome Tax Rs.54.68 lakhsProfessional Tax Rs.10.32 lakhs

b) There are no dues of Wealth Tax and Customs Duty which have not been deposited on account ofany dispute with the relevant authorities. Details of dues towards Income Tax, Sales Tax, ServiceTax, Excise Duty, Value Added Tax and Cess that have not been deposited as at March 31, 2018 onaccount of disputes by the aforesaid entities are as stated below :

(viii) In our opinion and according to the information and explanations given to us the Company hasnot defaulted in the repayment of dues to financial institutions, banks and debenture holders duringthe year except to the State Government where principal & interest is not being repaid.

(ix) Based upon the audit procedures performed and the information and explanations given by themanagement, the company has not raised moneys by way of initial public offer or further public offer


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CAPranjal Agarwal:: PartnerM. No. 303034


[80]

including debt instruments. In our opinion and according to explanation given to us we state that wecannot comment on the utilisation of the term loans raised by the company as the company is notmaintaining any project wise investment and source of investment details.

(x) According to the information and explanations given to us, and considering the size and nature of theoperations of the Company, no fraud of material significance on the Company, or no fraud by the Com-pany, have been noticed or reported during the year.

(xi) Since the company is a Government company Section 197 of the Companies act is not applicablehence this point of the Order is not applicable.

(xii) In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 4 (xii) of theOrder are not applicable to the Company.

(xiii) No information regarding the related party transactions were submitted before audit and hence wecannot comment on this point of the Order. Further, disclosures as required by the relevant AccountingStandard (AS 18) have not been made in the financial statement.

(xiv) Based upon the audit procedures performed and the information and explanations given by themanagement, the company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year under review.Accordingly, the provisions of clause 3

(xiv) of the Order are not applicable to the Company and hence not commented upon.

(xv) Based upon the audit procedures performed and the information and explanations given by themanagement, the company has not entered into any non-cash transactions with directors or personsconnected with him. Accordingly, the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

(xvi) In our opinion, the company is not required to be registered under section 45 IA of the Reserve Bankof India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to theCompany and hence not commented upon.


� �

�ANNEXURE B� TO THE INDEPENDENT AUDITOR�S REPORT OF EVEN DATE ON THEFINANCIAL STATEMENTS OF THE ASSAM POWER GENERATION COMPANY

LIMITED FOR THE YEAR ENDED MARCH 31, 2018)

(Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 ofthe Companies Act, 2013 (�the Act�)

We have audited the internal financial controls over financial reporting of THE ASSAM POWER GEN-ERATION COMPANY LIMITED (�the Company�) as of March 31, 2018 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management�s Responsibility for Internal Financial ControlsThe Company�s management is responsible for establishing and maintaining internal financial controlsbased on the internal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design, implementation andmaintenance of adequate internal financial con-trols that were operating effectively for ensuring the orderly and efficient conduct of its business, includ-ing adherence to company�s policies, the safeguarding of its assets, the prevention and detection offrauds and errors, the accuracy and completeness of the accounting records, and the timely prepara-tion of reliable financial information, as required under the Companies Act, 2013.

Auditors� ResponsibilityOur responsibility is to express an opinion on the Company�s internal financial controls over financialreporting based on our audit. We conducted our audit in accordance with the Guidance Note onAudit ofInternal Financial Controls Over Financial Reporting (the �Guidance Note�) and the Standards onAudit-ing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, tothe extent applicable to an audit of internal financial controls, both applicable to an audit of InternalFinancial Controls and, both issued by the Institute of CharteredAccountants of India. Those Standardsand the Guidance Note require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether adequate internal financial controls over financial report-ing was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Our audit of internalfinancial controls over financial reporting included obtaining an understanding of internal financial con-trols over financial reporting, assessing the risk that a material weakness exists, and testing and evalu-ating the design and operating effectiveness of internal control based on the assessed risk. The proce-dures selected depend on the auditor�s judgment, including the assessment of the risks of materialmisstatement of the financial statements, whether due to fraud or error.

[81]


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CAPranjal Agarwal:: PartnerM. No. 303034


[82]

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company�s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial ReportingA company�s internal financial control over financial reporting is a process designed to provide reason-able assurance regarding the reliability of financial reporting and the preparation of financial statementsfor external purposes in accordance with generally accepted accounting principles. A company�s inter-nal financial control over financial reporting includes those policies and procedures that (1) pertain tothe maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance that transactions arerecorded as necessary to permit preparation of financial statements in accordance with generally ac-cepted accounting principles, and that receipts and expenditures of the company are being made onlyin accordance with authorizations of management and directors of the company; and (3) provide rea-sonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or dispo-sition of the company�s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial ReportingBecause of the inherent limitations of internal financial controls over financial reporting, including thepossibility of collusion or improper management override of controls, material misstatements due toerror or fraud may occur and not be detected.Also, projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions, or that the degreeof compliance with the policies or procedures may deteriorate.

Disclaimer of OpinionThe system of internal financial controls over financial reporting with regard to the Company were notmade available to us to enable us to determine if the Company has established adequate internalfinancial control over financial reporting and whether such internal financial controls were operatingeffectively as at March 31, 2018.

We have considered the disclaimer reported above in determining the nature, timing, and extent of audittests applied in our audit of the standalone financial statements of the Company, and the disclaimer hasaffected our opinion on the financial statements of the standalone Company and we have issued aqualified opinion on the financial statements.


� �

ASSAM POWER GENERATION CORPORATION LIMITEDBALANCE SHEETASAT 31st MARCH, 2018

Particulars NoteAs on 31stMarch, 2017(Rs. in Lakh)

As on 31stApril, 2016(Rs. in Lakh)

[83]

ASSETSNon-current assetsProperty, plant and equipment 2 56,186.01 60,488.05 63,899.19Capital work-in-progress 3 124,870.26 100,825.07 79,533.79Other non-current assets 4 164.26 1,279.46 2,797.68

181,220.53 162,592.58 146,230.66Current assetsInventories 5 6,262.84 6,733.42 7,439.86Financial assetsTrade receivables 6(I) 14,174.14 26,283.11 20,233.41Cash and cash equivalents 6(II) 12,569.08 11,711.03 3,945.97Bank balances other than 6(ii) above 6(III) 59,979.94 33,494.32 14,700.25Loans 6(IV) 5,973.39 5,836.14 5,758.95Other financial assets 6(V) 597.54 - -

Income tax assets (net) 191.93 90.20 37.63Other current assets 7 11,942.79 9,799.91 8,397.78

111,691.65 93,948.13 60,513.85

Total assets 292,912.18 256,540.71 206,744.51EQUITYAND LIABILITIESEquityEquity share capital 8 45,585.98 45,585.98 45,585.98Other equity 9 78,114.35 48,757.01 22,741.34

123,700.33 94,342.99 68,327.32LiabilitiesNon- current liabilitiesFinancial liabilitiesBorrowings 10(I) 94,069.95 84,856.71 63,073.69

Deferred tax liabilities (Provision for MAT) 553.79 881.35 23.77Provisions 11 7,724.96 6,879.31 5,439.71Other non current liabilities 12 6,530.88 6,392.60 6,770.67

108,879.58 99,009.97 75,307.84Current liabilitiesFinancial liabilitiesTrade payables 13(I) 4,004.20 3,727.57 23,371.80Other financial liabilities 13(II) 28,873.98 29,832.65 23,561.89

Other current liabilities 14 18,253.21 14,983.38 14,910.34Provisions 15 9,200.87 14,644.15 1,265.32

60,332.26 63,187.75 63,109.35

Total equity and liabilities 292,912.17 256,540.71 206,744.51Summary of significant account policies 1 - -

As on 31stMarch, 2018(Rs. in Lakh)

In terms of our separate report of even datedFor, P. K. Sharma & AssociatesChartered AccountantsFirm Registration No. 316044E

For and on behalf ofAssam Power Generation Corporation Limited

(Shri Jishnu Barua, IAS)Chairman

(Smti. Kalyani Baruah)Managing Director

(Smti. Nayana Das)Company Secretary

(Shri S.N. Kalita)Chief Financial officerPlace : GuwahatiDate : 13th Juy, 2018

Partner

Membership No.:

Place :

Date :

The accompanying notes are an integral part of the IndAS financial statements.


� �

ASSAM POWER GENERATION CORPORATION LIMITEDSTATEMENT OF PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2018

Particulars NotesAs on 31st March,

2018(Rupees in lakh)

As on 31st March,2017

(Rupees in lakh)INCOMERevenue fromoperations 16 49,096.99 53,447.41Other income 17 253.31 170.78Finance income 18 1,869.72 1,644.38

Total Income (I) 51,220.02 55,262.57EXPENSESCost of rawmaterials consumed -other than lubricants 19 23,196.16 28,877.55Cost of rawmaterials consumed - lubricants 19 94.74 62.45Employee benefits expenses 20 9,569.00 9,841.25Other expenses 21 4,450.22 4,248.26Depreciation and amortization expense 22 4,030.24 4,331.37Finance costs 23 7,284.75 5,713.88

Total Expenses (II) 48,625.11 53,074.76Profit/(Loss) before tax 2,594.91 2,187.81Tax expenseCurrent tax 553.79 466.91MAT credit entitlementDeferredTax - -Prior year tax chargeTotal tax expense 553.79 466.91

Profit/(Loss) for the year 2,041.12 1,720.90

Other comprehensive income/(loss)(i) Items that will not be reclassified to profit or loss - -- Re-measurement gains/(loss) on defined benefit plans(ii) Income tax relating to items that will not bereclassified to profit or loss - -Other comprehensive income/(loss) for the year, net of tax - -

Total comprehensive income/(loss) for the year 2,041.12 1,720.90Earning per share (EPS)a) Basic earning/(loss) per share (in Rs.) 24 4.48 3.78b) Diluted earning/(loss) per share (in Rs.)[Nominal value of share Rs.100 (Rs.100) each]

[84]

In terms of our separate report of even datedFor, P. K. Sharma & AssociatesChartered AccountantsFirm Registration No. 316044E

For and on behalf ofAssam Power Generation Corporation Limited





Partner

Membership No.:

Place :

Date :

The accompanying notes are an integral part of the IndAS financial statements.


� �

ASSAM POWER GENERATION CORPORATION LIMITEDSTATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED MARCH 31, 2018

ParticularsOther equity

[85]

As per our separate report of even datedFor, P. K. Sharma &AssociatesChartered AccountantsFirm Registration No. 316044E

For and on behalf ofAssamPower Generation Corporation Limited





Partner

Membership No.:

Place :

Date :

a. Equity share capital :Equity shares of Rs. 10 each issued, No. of Shares (Rs. In Lakh)subscribed and fully paid upAs at April 1, 2016 45,585,975 45,585.98Issue of share capital - -As at March 31, 2017 45,585,975 45,585.98Issue of share capital - -As at March 31, 2018 45,585,975 45,585.98

b. Other equity : Rs. In Lakh)

Retained earnings Total other equity

As atApril 01, 2016 22,741.34 22,741.34Profit/(loss) for the year 1,720.90 1,720.90Other comprehensive income/(loss) - -Total comprehensive income/(loss) 1,720.90 1,720.90Created during the year 24,294.77 24,294.77As at March 31, 2017 48,757.01 48,757.01As atApril 01, 2017 48,757.01 48,757.01Profit/ (Loss) for the year 2,041.11 2,041.11Other comprehensive income/(loss) - -Total comprehensive income/(loss) 2,041.11 2,041.11Created during the year 27,316.24 27,316.24As at March 31, 2018 78,114.35 78,114.35


� �


(Rupees in Lakh)


(Rupees in lakh)

A. CASH FLOWFROMOPERATINGACTIVITIES:Net Profit before Taxatio 2,594.90 2,187.81Adjusted for :Depreciation 4,030.24 4,331.37Income from Fixed Deposit (1,840.93) (1,538.40)Interest /Other Income (75.35) (23.00)Interest & Other Charges 7,284.75 5,713.88

9,398.71 8,483.85Operating profit before working capital changes 11,993.61 10,671.66Change in Inventories 470.57 706.44Change in TradeReceivable 12,108.97 (6,049.70)Change inShort Term Loans &Advances (238.98) (129.76)Change in Others CurrentAssets (2,740.43) (1,402.13)Change in Trade Payables 276.63 (19,644.23)Change in Other Current Liabilites 2,315.96 6,343.80Change in Short TermProvisions 3,371.92 13,314.87

15,564.64 (6,860.71)Cash generated from operations 27,558.25 3,810.95Tax expenses (791.46) -

Net Cash fromOperating Activities 26,766.79 3,810.95

B. CASH FLOWFROM INVESTMENTACTIVITIES :Purchases of Fixed Assets (175.90) (993.40)Sale of Fixed Assets - -Purchase of Investments (26,485.62) (18,794.07)Sale of Investments - -Capital Work in Progress (24,045.19) (21,291.28)Income from Fixed Deposit 769.73 1,405.02Interest/Other Income 75.35 23.00

- -Net Cash Used in Investment Activities (49,861.63) (39,650.73)

ASSAM POWER GENERATION CORPORATION LIMITEDCASHFLOWSTATEMENTFORTHEYEARENDED31st MARCH, 2018

[86]

PARTICULARS


� �

C. CASH FLOWFROMFINANCINGACTIVITIES :Proceeds from Share capitalProceeds from Long Term Borrowings 4,181.92 28,884.13Repayment made towards loan (2,232.94) (2,296.68)Interest & Other Charges (5,265.00) (5,095.30)Proceeds from Grant towards capital assets 27,268.91 22,112.69Net Cash Used in Financing Activities 23,952.89 43,604.84

Net Increase/Decrease inCashandCashEquivalents(A+B+C) 858.05 7,765.06

Opening Balance of Cash and Cash Equivalents 11,711.03 3,945.97Closing Balance of Cash and Cash Equivalents 12,569.08 11,711.03

[87]

As per our separate report of even datedFor, P. K. Sharma &AssociatesChartered AccountantsFirm Registration No. 316044E

For and on behalf ofAssamPower Generation Corporation Limited





Partner

Membership No.:

Place :

Date :


� �

NOTES - 1 - Significant Accounting Policies

A. Corporate InformationAssam Power Generation Corporation Limited (�the Company�) is a public Company domiciled inIndia and incorporated under the provisions of the Companies Act applicable in India. The regis-tered office of the Company is located at Bijulee Bhawan, Paltan Bazar, Guwahati,Assam - 781001.

The Company is engaged in the generation and sell of power having its manufacturing facility inthe State of Assam.

B. Basis of preparation

The Ind AS financial statements of the Company have been prepared in accordance with theIndianAccounting Standards (IndAS) notified under the Companies (IndianAccounting Standards)Rules, 2015 as amended and the provisions of the Electricity Act, 2003, to the extent applicable.

For all periods up to and including the year ended March 31, 2017, the Company prepared itsfinancial statements in accordance with the accounting standards notified under the section 133of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules,2014 (Indian GAAP). These IndAS financial statements for the year endedMarch 31, 2018 are thefirst financial statements, the Company has prepared in accordance with Ind AS. Refer to note 32for information on how the Company adopted Ind AS.

The Ind AS financial statements have been prepared on an accrual basis and under the historicalcost convention.

The Company has elected to continue with the carrying value for all of its property plant andequipment as recognized in the financial statements as at the date of transition to Ind AS April 1,2016.

The IndAS financial statements are presented in Indian Rupees in Lakh, except number of shares,face value of share, earning / (loss) per share or wherever otherwise indicated.

C. Business combinations and goodwill

In accordance with Ind AS 101 provisions related to first time adoption, the Company has electedto apply Ind AS accounting for business combinations prospectively from April 1, 2015. As such,Indian GAAP balances relating to business combinations entered into before that date includinggoodwill if any, have been carried forward with no adjustment.

D. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-currentclassification. An asset is treated as current when it is:

[88]

Notes to Ind AS Financial Statements for the year ended March 31, 2018


� �

- Expected to be realised or intended to be sold or consumed in normal operating cycle- Held primarily for the purpose of trading- Expected to be realised within twelve months after the reporting period, or- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability forat least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:- It is expected to be settled in normal operating cycle- It is held primarily for the purpose of trading- It is due to be settled within twelve months after the reporting period, or- There is no unconditional right to defer the settlement of the liability for at least twelve monthsafter the reporting period

The Company classifies all other liabilities as non-current.Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisationin cash and cash equivalents. The Company has identified twelve months as its operating cycle.

E. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in anorderly transaction between market participants at the measurement date. The fair value mea-surement is based on the presumption that the transaction to sell the asset or transfer the liabilitytakes place either:- In the principal market for the asset or liability, or- In the absence of a principal market, in the most advantageous market for the asset or liabilityThe principal or the most advantageous market must be accessible by the Company.The fair value of an asset or a liability is measured using the assumptions that market participantswould use when pricing the asset or liability, assuming that market participants act in their eco-nomic best interest.

A fair value measurement of a non-financial asset takes into account a market participant�s abilityto generate economic benefits by using the asset in its highest and best use or by selling it toanother market participant that would use the asset in its highest and best use.All assets and liabilities for which fair value is measured or disclosed in the Ind AS financialstatements are categorised within the fair value hierarchy, described as follows, based on thelowest level input that is significant to the fair value measurement as a whole:- Level 1�Quoted (unadjusted) market prices in active markets for identical assets or liabilities- Level 2�Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is directly or indirectly observable

- Level 3 � Valuation techniques for which the lowest level input that is significant to the fairvalue measurement is unobservable

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The company has processed for engaging external agencies for valuation and verification ofAssets & inventory to be funded byAsian Development Bank (ADB). Expression of Interest (EOI)already floated and selection of vendor is in process. Once the Valuation and verification processis complete fair valuation shall be taken up by APGCL.

F. Revenue recognition and Other income

Revenue is recognized to the extent that it is probable that the economic benefits will flow to theCompany and the revenue can be reliably measured, regardless of when the payment is beingmade.

The following recognition criteria described belowmust also bemet before revenue is recognised:

Sale of goodsRevenue from sale of goods is recognized when all the significant risks and rewards of owner-ship of the goods have been passed to the buyer, usually on delivery of the goods. Revenue fromsale of Power by Assam Power Generation Corporation Limited has been accounted for on therate allowed in tariff ordered by Assam Electricity Regulatory Commission (AERC).

Revenue from servicesRevenues from services are recognized as and when services are rendered.

InterestInterest income is recorded using the effective interest rate (EIR) method. EIR is the rate thatexactly discounts the estimated future cash payments or receipts over the expected life of thefinancial instrument or a shorter period, where appropriate, to the gross carrying amount of thefinancial asset. �Interest income� is included in �Finance income� in the statement of profit and loss.

DividendsDividend income is recognized when the Company�s right to receive dividend is established,which is generally when shareholders approve the dividend.

G. Government grantsGovernment grants are recognised where there is reasonable assurance that the grant will bereceived and all attached conditions will be complied with.

Revenue grants from GoA are recognized in the Profit & Loss Statement on a systematic andrational basis over the periods necessary to match them with the related costs.

Grants from ADB, though shown separately in the accounts are grants from the Govt. of Assam,which receives the fund from Central govt., the borrower in terms of the loan agreement with ADB.

Government grants towards cost of capital assets are contribution of the owner (i.e. State Govt.)towards capital of the Company and will be converted to equity in future as communicated to us

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vide letter no. ASEB/ACT/FIN/87/Pt-VI/35 dated 12/11/2008. These grants cannot be construedas meeting a portion of the cost and cannot be amortised in the books of accounts as they will beconverted to equity in future. Hence, Govt. Grants are recognised in �Other equity�.

H. Taxes

Current income taxCurrent income-tax is measured at the amount expected to be paid to the tax authorities in accor-dance with the Income-taxAct, 1961 enacted in India and tax laws prevailing in the respective taxjurisdictions where the Company operates. The tax rates and tax laws used to compute theamount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside the statement of profit and loss isrecognised outside the statement of profit and loss (either in other comprehensive income or inequity). Current tax items are recognised in correlation to the underlying transaction either in OCIor directly in equity. Management periodically evaluates positions taken in the tax returns withrespect to situations in which applicable tax regulations are subject to interpretation and estab-lishes provisions where appropriate.

Deferred taxDeferred tax is provided using the liability method on temporary differences between the tax basesof assets and liabilities and their carrying amounts for financial reporting purposes at the reportingdate.

Deferred tax liabilities are recognised for all taxable temporary differences, except :- When the deferred tax liability arises from the initial recognition of goodwill or an asset orliability in a transaction that is not a business combination and, at the time of the transaction,affects neither the accounting profit nor taxable statement of profit and loss

- In respect of taxable temporary differences associated with investments in subsidiaries, asso-ciates and interests in joint ventures, when the timing of the reversal of the temporary differ-ences can be controlled and it is probable that the temporary differences will not reverse in theforeseeable future

Deferred tax assets are recognised for all deductible temporary differences, the carry forward ofunused tax credits and any unused tax losses. Deferred tax assets are recognised to the extentthat it is probable that taxable profit will be available against which the deductible temporary differ-ences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:- When the deferred tax asset relating to the deductible temporary difference arises from theinitial recognition of an asset or liability in a transaction that is not a business combination and,at the time of the transaction, affects neither the accounting profit nor taxable statement ofprofit and loss

- In respect of deductible temporary differences associated with investments in subsidiaries,associates and interests in joint ventures, deferred tax assets are recognised only to the ex-tent that it is probable that the temporary differences will reverse in the foreseeable future andtaxable profit will be available against which the temporary differences can be utilised.

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The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to theextent that it is no longer probable that sufficient taxable profit will be available to allow all or partof the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed ateach reporting date and are recognised to the extent that it has become probable that futuretaxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in theyear when the asset is realised or the liability is settled, based on tax rates (and tax laws) thathave been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside the statement of profit and loss is recognisedoutside the statement of profit and loss (either in other comprehensive income or in other equity).Deferred tax items are recognised in correlation to the underlying transaction either in OCI ordirectly in other equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to setoff current tax assets against current tax liabilities and the deferred taxes relate to the sametaxable entity and the same taxation authority.

Deferred tax assets include MinimumAlternative Tax (MAT) paid in accordance with the tax lawsin India, which is likely to give future economic benefits in the form of availability of set off againstfuture income tax liability. Accordingly, MAT is recognised as deferred tax asset in the statementof financial position when the asset can be measured reliably and it is probable that the futureeconomic benefit associated with the asset will be realised.

I. Property, plant and equipment (�PPE�)

The Company has elected to continue with the carrying value for all of its property plant andequipment as recognized in the financial statements as at the date of transition to Ind AS.

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumu-lated impairment losses, if any. Capital work in progress are stated at cost net of impairment lossif any. Such cost includes the cost of replacing part of the property plant and equipment andborrowing costs, if the recognition criteria are met.

Depreciation for the period in respect of assets has been provided on straight line method as perclause 33.4 of theAssam Electricity Regulatory Commission (Terms and Conditions for determi-nation of Multi Year Tariff) Regulations, 2015 in terms of the provision of Schedule-II, Part �B� ofCompanies Act, 2013. Depreciation on addition of assets has been calculated on pro-rata basis.

Assets Class Rate of DepreciationBuilding 3.34%Hydraulic 5.28%Other civil works 3.34%

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Plant & machinery 5.28%Lines & cable network 5.28%Vehicles � others 9.50%Furniture & fixtures 6.33%Office equipment 6.33%Capital spare 4.75%

Residual value of Property, plant & equipment is taken as 10% of original cost.

As per the accounting policy followed by the Company, Consumers� contribution, subsidies andgrants towards cost of capital assets have not been reduced from the cost of assets but havebeen treated as �Other Equity�. The depreciation pertaining to fixed assets constructed out ofconsumer�s contribution, subsidies and grants towards cost of capital assets is charged.

J. Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an assetthat necessarily takes a substantial period of time to get ready for its intended use or sale arecapitalized as part of the cost of the asset. All other borrowing costs are expensed in the periodin which they occur. Borrowing costs consist of interest and other costs that an entity incurs inconnection with the borrowing of funds. Borrowing cost also includes exchange differences tothe extent regarded as an adjustment to the borrowing costs.

K. Leases

The determination of whether an arrangement is (or contains) a lease is based on the substanceof the arrangement at the inception of the lease. The arrangement is, or contains, a lease iffulfilment of the arrangement is dependent on the use of a specific asset or assets and thearrangement conveys a right to use the asset or assets, even if that right is not explicitly specifiedin an arrangement.

For arrangements entered into prior to April 1, 2015, the Company has determined there are noarrangement contain lease on the basis of facts and circumstances existing on the date of transition.

Where the Company is lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease thattransfers substantially all the risks and rewards incidental to ownership to the Company is clas-sified as a finance lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair valueof the leased property or, if lower, at the present value of the minimum lease payments. Leasepayments are apportioned between finance charges and reduction of the lease liability so as toachieve a constant rate of interest on the remaining balance of the liability. Finance charges are


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recognised in finance costs in the statement of profit and loss, unless they are directly attributableto qualifying assets, in which case they are capitalized in accordance with the Company�s generalpolicy on the borrowing costs. Contingent rentals are recognised as expenses in the periods inwhich they are incurred.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonablecertainty that the Company will obtain ownership by the end of the lease term, the asset is depre-ciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as a expense in the statement of profit and loss on astraight line basis over the period of the lease term, unless the payment to lessor and structuredto increase in line with expected general inflation and compensate for the lessor�s expected infla-tion cost increase.

Where the Company is the lessorLeases in which the Company does not transfer substantially all the risks and rewards of owner-ship of an asset are classified as operating leases. Rental income from operating lease isrecognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurredin negotiating and arranging an operating lease are added to the carrying amount of the leasedasset and recognised over the lease term on the same basis as rental income. Contingent rentsare recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of owner-ship transfer from the Company to the lessee. Amounts due from lessees under finance leasesare recorded as receivables at the Company�s net investment in the leases. Finance lease in-come is allocated to accounting periods so as to reflect a constant periodic rate of return on thenet investment outstanding in respect of the lease.

L. Inventories

Inventories are valued at lower of cost or net realizable value. Net realizable value is the estimatedselling price in the ordinary course of business, less estimated costs of completion and estimatedcosts necessary to make the sale. The company has processed for engaging external agenciesfor valuation and verification ofAssets & inventory to be funded byAsian Development Bank (ADB).Expression of Interest (EOI) already floated and selection of vendor is in process. Once the Valu-ation and verification process is complete fair valuation shall be taken up by APGCL.

Presently, Inventories Accounts of the Company maintained for construction project has beentreated as �Capital Stores� and that of O& M purpose treated as �Operational Stores�. Materialsare issued to works at standard price. Issue of Standard Items is at Standard rates on FIFO basis.For Non-Standard Items receipt accounting is based on Basic Price + GST. Issue of Non-Stan-dard Items is based on weighted average rate of previous month�s closing balance. If there is noclosing stock in the previous month, valuation of issue is based on the first receipt rate of thecurrent month.


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Shortages found on physical verification of stocks are booked under �Material Shortages pendinginvestigation (Account code 2710000). These shortages are recovered from persons respon-sible or written off, as the case may be, on completion of investigation.

M. Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset maybe impaired. If any indication exists, or when annual impairment testing for an asset is required,the Company estimates the asset�s recoverable amount. An asset�s recoverable amount is thehigher of an asset�s or cash-generating unit�s (CGU) fair value less costs of disposal and its valuein use. The recoverable amount is determined for an individual asset, unless the asset does notgenerate cash inflows that are largely independent of those from other assets or groups of as-sets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the assetis considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present valueusing a pre-tax discount rate that reflects current market assessments of the time value of moneyand the risks specific to the asset. In determining fair value less costs of disposal, recent markettransactions are taken into account. If no such transactions can be identified, an appropriatevaluationmodel is used. These calculations are corroborated by valuationmultiples, quoted shareprices for publicly traded companies or other available fair value indicators.

The Company bases its impairment calculation on detailed budgets and forecast calculations,which are prepared separately for each of the Company�s cash-generating units to which theindividual assets are allocated. These budgets and forecast calculations generally cover a periodof five years. For longer periods, a long-term growth rate is calculated and applied to projectfuture cash flows after the fifth year. To estimate cash flow projections beyond periods covered bythe most recent budgets/forecasts, the Company extrapolates cash flow projections in the bud-get using a steady or declining growth rate for subsequent years, unless an increasing rate canbe justified. In any case, this growth rate does not exceed the long-term average growth rate forthe products, industries, or country or countries in which the entity operates, or for the market inwhich the asset is used.

Impairment losses, including impairment on inventories, are recognized in the statement of profitand loss.

For assets, an assessment is made at each reporting date to determine whether there is anindication that previously recognised impairment losses no longer exist or have decreased. Ifsuch indication exists, the Company estimates the asset�s or CGU�s recoverable amount. A pre-viously recognised impairment loss is reversed only if there has been a change in the assump-tions used to determine the asset�s recoverable amount since the last impairment loss wasrecognised. The reversal is limited so that the carrying amount of the asset does not exceed itsrecoverable amount, nor exceed the carrying amount that would have been determined, net of


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depreciation, had no impairment loss been recognised for the asset in prior years. Such reversalis recognised in the statement of statement of profit and loss.

N. Provisions

GeneralProvisions are recognized when the Company has a present obligation (legal or constructive) asa result of a past event, it is probable that an outflow of resources embodying economic benefitswill be required to settle the obligation and a reliable estimate can be made of the amount of theobligation. When the Company expects some or all of a provision to be reimbursed, for example,under an insurance contract, the reimbursement is recognised as a separate asset, but onlywhen the reimbursement is virtually certain. The expense relating to a provision is presented inthe statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used,the increase in the provision due to the passage of time is recognised as a finance cost.

O. Retirement and other employee benefits

Retirement benefit in the form of provident fund contribution to Statutory Provident Fund and Em-ployees� State Insurance (ESI) is defined contribution scheme.

Pursuant to the Transfer Scheme, the GoA vide Notification No.PEL.190/2004/69 dated 4th Feb-ruary, 2005 notified the plan for meeting the terminal benefit obligations of personnel transferredfrom ASEB to successor entities. As per Clause 1.5 of the said notification �Terminal Benefit�means the ASEB�s employee related liabilities including payments of pension, gratuity, leaveencashment and General Provident Fund and any other retirement benefits and applicable ben-efits including right to appropriate revisions in the above benefits consistent with the practice thatwere prevalent in ASEB:

Funding for past unfunded terminal liabilitiesFunding for past unfunded terminal liabilities is on the basis of actuarial valuation done as at 30thSeptember, 2012. The cash outflows towards past unfunded liabilities of existing employees,existing pensioners and existing family pensioners funded pattern will be guided by the aforesaidGovt. notification.

Funding for future services - Terminal BenefitsThe company hasmade a provision for terminal liability for future service of its existing [email protected]% of Basic plus DA as per AERC guidelines and in the line with the GoA�s Notificationmentioned above.

Leave encashment benefit (LEB) of employeesLeave encashment benefit of the old employees are accounted on cash basis. LEB admissible to

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the employees are being paid by the Company and claim for recovery of the appropriate share ofsuch fund (i.e. share of past liability) relating to period prior to 09.12.2004 is forwarded to thePension Trust Authority as per GoANotification mentioned here-in-above.

GPF deductions/payments of employeesPayments on account of GPF (Final Withdrawal and Non-refundable advance) to the existingemployees are being made from the GPF Account of the Company. Claim for recovery of appro-priate share of such fund (i.e. share of past unfunded liability) is forwarded to the Pension Trustauthority as per GoA Notification mentioned above.Provision for interest on GPF is on the basis of the following rates:i) 7.9% w.e.f 01.04.2017 to 30.06.2017ii) 7.8% w.e.f 01.07.2017 to 30.09.2017iii) 7.8% w.e.f 01.10.2017 to 31.12.2017iv) 7.6% w.e.f 01.01.2018 to 31.03.2018 applied on the average subscription of the employee.

Terminal benefit for new (appointed on or after 1.1.2004) employees

New Pension Scheme is being implemented for the new employees of the Company as perGovernment of India Notification No.5/7/2003-ECB & PR dated. 22.12.2003. The Company con-tributed the equal amount deducted from its employees, fall under New Pension Scheme.

P. Earnings per Share

Basic earnings per share is calculated by dividing the profit/(loss) attributable to owners of theCompany by the weighted average number of equity shares outstanding during the financial year,adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted earnings per share adjusts the figures used in the determination of basic earnings pershare to take into account the after income tax effect of interest and other financing costs associ-ated with dilutive potential equity shares and the weighted average number of additional equityshares that would have been outstanding assuming the conversion of all dilutive potential equityshares.

Q. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financialliability or equity instrument of another entity.

Financial assetsInitial recognition and measurementAll financial assets are recognised initially at fair value plus, in the case of financial assets notrecorded at fair value through statement of profit and loss, transaction costs that are attributableto the acquisition of the financial asset. Purchases or sales of financial assets that require deliveryof assets within a time frame established by regulation or convention in the market place (regular

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way trades) are recognised on the trade date, i.e., the date that the Company commits to pur-chase or sell the asset.

Subsequent measurementFor purposes of subsequent measurement, financial assets are classified as debt instrumentsat amortised costDebt instruments at amortised costA �debt instrument� is measured at the amortised cost if both the following conditions are met:a) The asset is held within a business model whose objective is to hold assets for collectingcontractual cash flows, andb) Contractual terms of the asset give rise on specified dates to cash flows that are solely pay-ments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised costusing the effective interest rate (EIR) method. Amortised cost is calculated by taking into accountany discount or premium on acquisition and fees or costs that are an integral part of the EIR. TheEIR amortisation is included in finance income in the statement of profit and loss. The lossesarising from impairment are recognised in the statement of profit and loss. This category gener-ally applies to trade and other receivables.

DerecognitionA financial asset is primarily derecognised when:- The rights to receive cash flows from the asset have expired, or- The Company has transferred its rights to receive cash flows from the asset or has assumedan obligation to pay the received cash flows in full without material delay to a third party under a�pass-through� arrangement; and either (a) the Company has transferred substantially all therisks and rewards of the asset, or (b) the Company has neither transferred nor retained substan-tially all the risks and rewards of the asset, but has transferred control of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has enteredinto a pass-through arrangement, it evaluates if and to what extent it has retained the risks andrewards of ownership. When it has neither transferred nor retained substantially all of the risksand rewards of the asset, nor transferred control of the asset, the Company continues to recognisethe transferred asset to the extent of the Company�s continuing involvement. In that case, theCompany also recognises an associated liability. The transferred asset and the associated liabil-ity are measured on a basis that reflects the rights and obligations that the Company has re-tained.

Continuing involvement that takes the form of a guarantee over the transferred asset is mea-sured at the lower of the original carrying amount of the asset and the maximum amount ofconsideration that the Company could be required to repay.

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Impairment of financial assetsThe Company recognizes loss allowances using the expected credit loss (ECL) model for thefinancial assets which are not fair valued through profit or loss. Loss allowance for trade receiv-ables with no significant financing component is measured at an amount equal to lifetime ECL.The amount of expected credit losses (or reversal) that is required to adjust the loss allowance atthe reporting date to the amount that is required to be recognized as an impairment gain or loss instatement of profit or loss

Financial liabilitiesInitial recognition and measurementFinancial liabilities are classified, at initial recognition, as financial liabilities at fair value throughstatement of profit and loss.The Company�s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurementFinancial liabilities are subsequently carried at amortized cost using the effective interest method,except for contingent consideration recognized in a business combination which is subsequentlymeasured at fair value through profit or loss. For trade and other payables maturing within oneyear from the balance sheet date, the carrying amounts approximate the fair value due to theshort maturity of these instruments.

Financial guarantee contractsFinancial guarantee contracts issued by the company are those contracts that require a paymentto be made by holding company to reimburse banks for a loss they incurs because the Companyfails to make a payment when due in accordance with the terms of a debt instrument. Financialguarantee contracts are recognised initially as contribution from shareholders under other equityat fair value, adjusted for transaction costs that are directly attributable to the issuance of theguarantee. This amount is adjusted from borrowings obtained by the Company. Borrowings aresubsequently measured at amortised cost using the EIR method.

De-recognitionA financial liability is derecognised when the obligation under the liability is discharged or can-celled or expires. When an existing financial liability is replaced by another from the same lenderon substantially different terms, or the terms of an existing liability are substantially modified, suchan exchange or modification is treated as the de-recognition of the original liability and the recog-nition of a new liability. The difference in the respective carrying amounts is recognised in thestatement of statement of profit and loss.

Reclassification of financial instrumentsThe Company determines classification of financial assets and liabilities on initial recognition.After initial recognition, no reclassification is made for financial assets which are equity instru-ments and financial liabilities. For financial assets which are debt instruments, a reclassificationis made only if there is a change in the business model for managing those assets. Changes to

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the business model are expected to be infrequent. The Company�s senior management deter-mines change in the business model as a result of external or internal changes which are signifi-cant to the Company�s operations. Such changes are evident to external parties.A change in thebusiness model occurs when the Company either begins or ceases to perform an activity that issignificant to its operations. If the Company reclassifies financial assets, it applies the reclassi-fication prospectively from the reclassification date which is the first day of the immediately nextreporting period following the change in business model. The Company does not restate anypreviously recognised gains, losses (including impairment gains or losses) or interest.

Offsetting of financial instrumentsFinancial assets and financial liabilities are offset and the net amount is reported in the balancesheet if there is a currently enforceable legal right to offset the recognised amounts and there isan intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

R. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand andshort-term deposits with an original maturity of three months or less, which are subject to aninsignificant risk of changes in value.For the purpose of the statement of cash flows, cash and cash equivalents consist of cashand short-term deposits, as defined above, net of outstanding bank overdrafts as they areconsidered an integral part of the Company�s cash management.

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Note:- (i) In the absence of shift log book for Plant & machinary, depreciation on Plant & machinary has been charged on continued process plant basis.(ii) On fixed assets acquired during the year depreciation is charged on �Put to use� basis.

Assam Power Generation Corporation LimitedNotes to the Ind AS financial statements as at and for the year ended March 31, 2018

2. Property, plant and equipment

DescriptionLandownedunderfull title

Lease-holdloan

Building HydraulicOther civilworks

Plant &machin-ery

Lines &cable

networkVehicles

Furniture&

fixtures

Officeequipmen

Roads onland

belongingto others

Capitalspares atgeneratingstations

Total

GROSS BLOCKAs on 1st April 2016 2,072.78 6.40 6,255.62 17,820.15 17,090.53 56,008.44 4,471.90 131.17 158.18 129.99 28.24 17,514.73 121,688.13Adjustment/Reclassification - - - - - (74.00) - - - - - - (74.00)Additions during the year - - 7.25 - 292.36 681.58 - - 5.79 10.15 - - 997.13Deductions during the year - - - - - - (21.18) (23.10) - - - - (44.28)As on 31st March 2017 2,072.78 6.40 6,262.87 17,820.15 17,382.89 56,616.02 4,450.72 108.07 163.97 140.14 28.24 17,514.73 122,566.98As on 1.4.2017 2,072.78 6.40 6,262.86 17,820.15 17,382.90 56,616.02 4,450.71 108.07 163.97 140.14 28.24 17,514.73 122,566.97Adjustment/Reclassification - - 136.63 - - (487.17) - - - - - - (350.54)Additions during the year - - 0.75 - 93.71 48.73 - - 7.17 25.54 - - 175.90

Deductions during the year - - - - - - - - - - - - -As on 31st March 2018 2,072.78 6.40 6,400.24 17,820.15 17,476.61 56,177.58 4,450.71 108.07 171.14 165.68 28.24 17,514.73 122,392.33

DEPRECIATIONDeductions during the year - - 2,721.53 6,225.32 5,929.77 26,661.36 2,877.75 107.03 100.18 75.94 1.00 13,089.06 57,788.94Deductions during the year - - - - - (1.90) - - - - - - (1.90)Deductions during the year - - 176.57 898.05 526.43 1,934.97 135.46 3.76 4.50 8.46 0.09 643.08 4,331.37

Deductions during the year - - - - - - (19.06) (20.42) - - - - (39.48)As on 31st March 2017 - - 2,898.10 7,123.37 6,456.20 28,594.43 2,994.15 90.37 104.68 84.40 1.09 13,732.14 62,078.93Deductions during the year - - 1.88 42.77 0.77 52.96 0.89 (0.49) 0.34 2.01 2.59 (6.57) 97.15Deductions during the year - - 148.70 940.83 530.36 1,986.02 127.26 3.03 5.22 10.22 2.68 275.91 4,030.23Deductions during the year - - - - - - - - - - - - -As on 31st March 2018 - - 3,048.68 8,106.98 6,987.33 30,633.41 3,122.30 92.91 110.24 96.63 6.36 14,001.48 66,206.32

NET BOOK VALUEAs on 31st March 2018 2,072.78 6.40 3,351.56 9,713.17 10,489.28 25,544.17 1,328.41 15.16 60.90 69.05 21.88 3,513.25 56,186.01As on 31st March 2017 2,072.78 6.40 3,364.76 10,696.77 10,926.70 28,021.59 1,456.56 17.70 59.29 55.74 27.15 3,782.59 60,488.03As on 1st April 2018 2,072.78 6.40 3,534.09 11,594.83 11,160.76 29,347.08 1,594.15 24.14 58.00 54.05 27.24 4,425.67 63,899.19

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3. CAPITAL WORK IN PROGRESS

Particulars

Capital work in progress 79,533.79 100,825.07 124,870.26

Ason31-03-2016

Ason31-03-2017

Ason31-03-2017

Particulars

Land owned under full title - - - 173.20 173.20Leasehold loan - - - - -Building 19.93 79.55 99.48 - 99.48Hydraulic - - - - -Other civil works 38,308.31 17,510.75 55,819.07 19,395.57 75,214.64Plant & machinery 41,090.91 3,674.22 44,765.13 4,340.93 49,106.06Lines & cable network 108.51 - 108.51 - 108.51Vehicles - 0.32 0.32 - 0.32Furniture & fixtures 6.12 - 6.12 - 6.12Office Equipment - 26.44 26.44 135.49 161.93Total 79,533.79 21,291.28 100,825.07 24,045.19 124,870.26

As on 1stApril, 2016(Rs.in Lakh)

Addition /(capitalised)during theyear

Ason31stMarch 2017(Rs. In Lakh)

Addition /(capitalised)

during the year

Ason31stMarch 2018(Rs. In Lakh)

[102]


� �

Particulars Ason 31-03-2017(Rs. in Lakh)

Ason 31-03-2016(Rs. in Lakh)


AssamPowerGenerationCorporationLimitedNotes to the Ind AS financial statements as at and for the year ended March 31, 2018

4.OTHERNON-CURRENTASSETS (UNSECUREDANDCONSIDEREDGOODUNLESSOTHERWISESTATED)*

Advance to suppliers (Capital)Interest free 69.39 256.65 354.17Advance to contractors (Capital)Advance to Capital Contractors - InterestFree 94.86 1,022.80 2,443.51Total 164.26 1,279.46 2,797.68




5. INVENTORIES (AT LOWEROFCOSTORNETREALIZABLEVALUE)

1. Capital Stores and SparesFuel Stock 1.15 0.38 3.81Capital Materials Stock A/c 7,714.79 7,152.62 8,002.92Material Issues O&M - - -

2. O&M Materials Stock A/c 437.91 1,471.43 1,373.453. Materials Stock Adjustments (Capital) - - -Materials Stock Adjustment (O&M) - - -Other Material Account 1,312.04 1,312.04 1,262.71Material stock-Excess/Shortagepending investigation - Capital - -

-Less: Provision against stock (3,203.05) (3,203.05) (3,203.05)Net Total 6,262.84 6,733.42 7,439.86

[103]


� �[104]




Receivables against sale of power -APDCL 14,174.14 26,283.11 20,233.41Total 14,174.14 26,283.11 20,233.41Break-up for security details :Trade receivablesSecured, considered good - - -Unsecured, considered good 14,174.14 26,283.11 20,233.41Doubtful - - -Total 14,174.14 26,283.11 20,233.41

6. CURRENTFINANCIALASSETS (CONSIDEREDGOODANDUNSECUREDUNLESSOTHERWISESTATED)(I). TRADERECEIVABLES




Balances with banks :- On current accounts 1,535.25 1,733.64 1,359.89- On cash credit facilities - - -- On deposit accounts with original maturityof less than three months* 10,956.40 9,900.90 2,511.95Cash in hand 77.43 76.50 74.13Total 12,569.08 11,711.03 3,945.97

(II). CASH&CASHEQUIVALENTS

(i) Balances with bank includes closing bank balance of HQ as well as of all field units along with the fund in transit(ii) Fixed Deposits with Banks includes closing balance of fixed deposit at various banks.




- On deposit accounts with remainingmaturity of more than three months but lessthan 12 months * 59,979.94 33,494.32 14,700.25

Total 59,979.94 33,494.32 14,700.25

(III). BANKBALANCESOTHERTHAN (II) ABOVE

*Short-term deposits aremade for varying periods of between one day and twelvemonths, depending on the imme-diate cash requirements of the Company and on interest at the respective short-term deposit rates ranging from6.50% - 8.75%.


� �[105]




Balances with banks:� On current accounts 1,535 1,734 1,360� On cash credit facilities - - -� Deposits with remaining maturity of lessthan three months 10,956 9,901 2,512Cash on hand 77 76 74

12,569.08 11,711.03 3,945.97

For the purpose of the statement of cash flows, cash and cash equivalents comprise the following :

Particulars Cash Flows OthersApril 1, 2017

Non current borrowings 84,856.71 1,948.97 7,264.27 94,069.95

March 31, 2018

Changes in liabilities arising from financing activities

Particulars Cash Flows OthersApril 1, 2016

Non current borrowings 63,073.69 26,587.45 (4,804.43) 84,856.71

March 31, 2017




Advances for O&M supplies/works 5,899.87 5,817.29 5,745.07Loans and advances to staff 20.93 18.85 13.89Others 52.59 - -

Total 5,973.39 5,836.14 5,758.95

(IV). LOANS (CONSIDEREDGOODANDUNSECUREDUNLESSOTHERWISESTATED)




Amount recoverable from ONGC Ltd. 583.20

Advance (to)/from APDCL 14.34

Total 597.54

(V). OTHERFINANCIALASSETS (CARRIEDATAMORTIZEDCOST)


� �[106]




Fuel related receivables & claims(Railway claims for coal) 747.91 747.91 747.91Other receivables 9,934.50 8,692.65 7,435.39Prepaid expenses 33.85 100.61 104.61Income accrued but not due 1,201.16 182.76 30.59Deposits 14.21 0.55 0.55

- - -Inter Unit A/c - Fuel (0.00) - -Inter Unit A/c - Materials - - -Inter Unit A/c - Capital Expenditure &Fixed Assets 0.00 0.00 (0.00)Inter Unit A/c - Remittance to HQ 8.30 74.31 77.62Inter Unit A/c - Personnel - - -Inter Unit A/c - Opening Balance - 1.11 1.11Inter Unit A/c - Opening Balance 2.86 - -Total 11,942.79 9,799.91 8,397.78

7.OTHERCURRENTASSETS (CONSIDEREDGOODANDUNSECUREDUNLESSOTHERWISESTATED)

7.1 Other receivable includes proportion of unfunded liabilities to be received from the Pension Truston account of GPF & LEB payment.

Particulars As at March 31, 2018

AuthorisedAt the beginning of the year 100000000 100,000.00 100000000 100,000.00 100000000 100,000.00Increase / decrease during the year - - - - - -At the end of the year 100000000 100,000 100000000 100,000 100000000 100,000

8. EQUITYSHARECAPITAL

(Rs. inLakh)

Mo. ofShares

As at March 31, 2017(Rs. inLakh)

Mo. ofShares

As at April 1, 2016(Rs. in Lakh)Mo. of

Shares




Issued, Subscribed and Fully Paid Up :

45,585,975 equity share of Rs 100/- each 45,585.98 45,585.98 45,585.98

Total 45,585.98 45,585.98 45,585.98


� �[107]


At the beginning of the year 45585975 45,585.98 45585975 45,585.98 45585975 45,585.98Increase / decrease during the year 0 - 0 - - -At the end of the year 45585975 45,585.98 45585975 45,585.98 45585975 45,585.98

a. Reconciliation of equity shares outstanding at the beginning and at the end of the period

(Rs. inLakh)

Mo. ofShares

As at March 31, 2017(Rs. inLakh)

Mo. ofShares

As at April 1, 2016(Rs. inLakh)

Mo. ofShares

b. Terms/ rights attached to Equity shares

The Company has only one class of equity shares having par value of Rs.100 per share. Each holderof equity shares is entitled to one vote per share. The Company declares and pays dividends in Indianrupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholdersat the ensuingAnnual General Meeting (AGM).

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remain-ing assets of the Company, after distribution of all preferential amounts, in proportion to the number ofequity shares held by them.


Governor ofAssam 45585967 99.99998 45585967 99.99998 45585967 99.99998

c. Details of shareholders holding more than 5% shares in the company

%holding

Mo. ofShares

As at March 31, 2017%

holdingMo. ofShares

As at April 1, 2016%

holdingMo. ofShares

Particulars Ason31-03-2017

Ason31-03-2016

Ason31-03-2018

Aggregate number of shares issued for consideration otherthan cash during the period of five years immediatelypreceding the reporting date: 45585975 45585975 45585975

d. Shares issued for consideration other than cash

As per records of the Company, including its register of shareholders/members and other declarationreceived from shareholders regarding beneficial interest, the above shareholding represent both legaland beneficial ownership of shares, unless stated otherwise.


� �[108}

Particulars As on31-03-2017(Rs. in Lakh)

As on 31-03-2016

(Rs. in Lakh)

As on31-03-2018(Rs. in Lakh)

Capital Reserve*

Capital Reserve 91,679.66 64,363.42 40,068.65

Total (A) 91,679.66 64,363.42 40,068.65Surplus/(deficit) in the Statement of

Profit and LossProfit (Loss) as per last Balance Sheet (15,606) (17,327.3) (17,420.11)

Profit (Loss) for the year 2,041.11 1,720.90 92.80

Net surplus/(deficit) in the Statementof Profit and Loss (B) (13,565.30) (15,606.4) (17,327.31)

- -

Total (A+B) 78,114.35 48,757.01 22,741.34

9.OTHEREQUITY

Particulars As on31-03-2017(Rs. in Lakh)

As on 31-03-2016

(Rs. in Lakh)

As on31-03-2018(Rs. in Lakh)

*Movement of Capital Reserve

Grant from GoA -1At the beginning of the year 47,192.27 34,568.20 34,553.20Accrual during the year 19,124.66 12,624.07 15.00Released to the statement of profit and loss - - -At the end of the year 66,316.93 47,192.27 34,568.20

Grant from GoA -2At the beginning of the year 11,802.25 131.55 131.55Accrual during the year 8,191.58 11,670.70 -Released to the statement of profit and loss - - -At the end of the year 19,993.83 11,802.25 131.55

Grant from NABARDAt the beginning of the year 4,284.42 4,284.42 4,284.42Accrual during the year - -Released to the statement of profit and loss - - -At the end of the year 4,284.42 4,284.42 4,284.42

Donated Capital AssetsAt the beginning of the year 1,084.47 1,084.47 1,084.47Accrual during the year - - -Released to the statement of profit and loss - - -At the end of the year 1,084.47 1,084.47 1,084.47


� �[109]

Particulars As on31-03-2018

As on31-03-2016

SECUREDOther parties - PFCL 9.76%- 41,402.07 43,635.01 39,257.97

12.54%Total (A) 41,402.07 43,635.01 39,257.97

UNSECURED

From other parties - ADB 10% 2,206.92 1,296.74 2,424.53

From other parties - State Govt. (GoA) 10% 50,460.96 39,924.95 21,391.18

Total (B) 52,667.88 41,221.70 23,815.71

Total (A+B) 94,069.95 84,856.71 63,073.69

10. FINANCIAL LIABILITIES(I). BORROWINGS

Ason31-03-2017

Rate ofInterest

Particulars

PFC Loan No. 62102002 Repayable in 180 structured monthly installments starting from(Rs. 125 Crs.) January 15, 2007 to December 15, 2021.

PFC Loan No. 62102002 is taken against hypothecation of futureassets of KLHEP created out of the loan.

PFC Loan No. 62104004 Repayable in 40 structured quaterly installments starting from(Rs. 12.75 Crs.) october 15, 2007 to October 15, 2017.

PFC Loan No. 62104004 is taken against hypothecation of futureassets of S.T. NTPS created out of the loan.

PFC Loan No. 62404001 Repayable in 60 structured quaterly installments starting fromApril(Rs. 18.28 Crs.) 15, 2009 to January 15, 2024.

PFC Loan No.62404001 is taken against hypothecation of futureassets of R&M-II LTPS created out of the loan.


PFC Loan No. 62401001 is taken against hypothecation of futureassets of LWHRP created out of the loan.


PFC Loan No. 62401003 is taken against hypothecation of futureassets of NRPP created out of the loan.

Terms of repayment and security


� �[110]

Particulars

GoALoan Repayable in 10 structured monthly installments. However norepayment is done yet.All the governing terms & conditions regarding loans from GoA arebeing governed by GoAOM No.BW.22/89/175 dtd.27-03-06 or asspecified in different sanction orders for different loans. In case ofdefault in repayment of instalment of Principal & Interest, PenalInterest @2.75% will be charged above the normal rate of interest.

ADB Loan Repayment terms and other conditions yet to be informed by GoA.

Terms of repayment and security

11. PROVISION


As on31-03-2016

As on31-03-2018

Provision For Employees Benefits

Provision For Employees Benefits 7,724.96 6,879.31 5,439.71

Total 7,724.96 6,879.31 5,439.71

(i) Claim for recovery of appropriate share (84.49%) of GPF & LEB as past unfunded liabilities receiv-able from Pension Trust as per GoAnotification No.PEL.190/2004/69 dtd. 4-02-05. The details is givenas follows :

Receivable against GPF : 8,45,66,000Receivable against LEB : 3,96,23,000Total Receivable during the year 12,41,89,000

12. OTHERNONCURRENTLIABILITIES


As on31-03-2016

As on31-03-2018

GPF 6,530.88 6,392.60 6,770.67Total 6,530.88 6,392.60 6,770.67


� �[111]

13. FINANCIAL LIABILITIES(I). TRADE PAYABLES


As on31-03-2016

As on31-03-2018

Total outstanding dues of micro andsmall enterprisesTotal outstanding dues of creditors

other thanmicro and small enterprises *Liabilities for Supply of Gas 2,230.94 - 2,273.08 - 20,997.16

Liabilities for Transportation of Gas 1,773.26 - 1,454.49 - 2,374.64

Total 4,004.20 3,727.57 23,371.80

* Terms and conditions of the above financial liabilities:Trade payables are interest bearing and are normally settled on 15-30-day termsFor explanations on the companies credit risk management processes, refer note 27.

(II). OTHERFINANCIALLIABILITIES (ATAMORTIZEDCOST)


As on31-03-2016

As on31-03-2018

Current Maturities of Long Term Debt

Repayment due to State Govt. Loan 4,691.06 11,950.07 9,327.72

Interest accrued but not due on Borrowings 240.01 9.59 17.93

Interest accrued and due on Borrowings* 23,942.90 17,872.99 14,216.23

Total 28,873.98 29,832.65 23,561.89

* Interest accrued and due on borrowings includes :- (a) State Govt Loan Rs.229,43,79,147/- (b) PFCLoan Rs.10,00,22,888/-


� �[112]

14. OTHERSCURRENTLIABILITES


As on31-03-2016

As on31-03-2018

Provision For Employes Benefits

Staff related provision 851.85 503.51 -

Salaries, wages, bonous 286.68 403.59 547.19

Employees� contribution & recoveries 150.96 149.34 159.64

- - -

Other Payables - - -

Deposits and retention from suppliers

and contractors 8,474.96 7,193.51 6,978.29

Liabilities for capital supplies /works 4,497.85 2,746.00 3,357.70

Liabilities for supplies/works(O&M) 1,084.57 1,064.11 891.31

Other Liabilities 2,006.79 2,009.38 2,120.92

Advance (to) /fromAEGCL 110.43 124.65 58.46

Staff Pension Fund (DCP) 49.76 49.93 57.46

Liabilities to railways for Coal receipt 739.37 739.37 739.37

Total 18,253.21 14,983.38 14,910.34

15. PROVISION


As on31-03-2016

As on31-03-2018

Provision for Liability for Expenses 3,278.22 2,584.24 993.50

Liability for Pension 172.78 89.82 266.19

Provision of Audit Fees 4.29 3.02 2.99

Provision for Building & other Construction

workers welfare cess (0.20) 6.28 2.63

Prov. For Regularity liability 5,745.79 11,960.79

Total 9,200.87 14,644.15 1,265.32


� �[113]

Notes to the Ind AS financial statements as at and for the year ended March 31, 201816. REVENUE FROM OPERATIONS

Particulars For the Year endedMarch 31, 2017Rs. in Lakh

Sale of productsGross Sale of Power to APDCL 45,389.99 59,662.41Add/Less: Adjustment in line with the AERC Review Order 3,707.00 (6,215.00)Sale of Power (ASEB) 49,096.99 53,447.41Total sale of products** 49,096.99 53,447.41

For the Year endedMarch 31, 2018Rs. in Lakh

ASSAM POWERGENERATION CORPORATION LIMITED

17. OTHER INCOME


Rebate for timely payment 20.47 5.37Misc.receipts (except 62.901 &62.908) 141.27 125.84Rentals from staff quarters 16.22 16.58Other Income from trading 75.35 -Sale of scrap - 23.00Total 253.31 170.78


18. FINANCE INCOME


InterestInterest on House Building Advances to Staff - 0.03Interest on Investment (Fixed Deposit) 1,840.93 1,538.40Interest from Banks (other than interest on fixed deposits) 0.76 2.79Rebate received for timely payment of duesof loans, interest, etc. 28.02 103.16Total 1,869.72 1,644.38


19. COST OF MATERIALS CONSUMED


IndigenousGas 899.45 1,361.60Gas/Oil (Internal Combustion) 22,296.71 27,515.94Lubricants and consumable stores 94.74 62.45Total 23,290.90 28,940.00



� �[114]

20. EMPLOYEE BENEFITS EXPENSES


Salaries 5,239.72 4,421.98Overtime 105.74 181.43Dearness Allowance 2,151.39 3,082.20Other Allowances 643.22 567.73Bonus 2.73 4.54Sub Total 8,142.80 8,257.88Less:-Employees cost capitalised 117.57 141.23Total Salaries and Wages 8,025.23 8,116.65Contribution to provident and other funds 1,437.71 1,570.33

1,437.71 1,570.33

Medical expenses reimbursement 14.60 17.58Leave travel concession (L.T.C) 2.04 7.02Earned leave encashment. 72.74 99.63Other Staff Cost 0.49 3.85Staff Welfare 16.19 26.18Total Staff Welfare Expenses 106.06 154.27

TOTAL: 9,569.00 9,841.25


20.1 Under 'Contribution to Provident and Other Funds', 23.31% of Pay and DA of employees whojoined in service prior to 01-01-2004 and 10% of Pay and DA of employees who joined in service after01-01-2004.

21. OTHER EXPENSES


Manufacturing ExpensesRepair and Maintenance of Plant and Machinery 2,811.95 2,109.86Repair and Maintenance of Building 218.33 247.20Repair and Maintenance of Hydraulic Works 43.97 82.99Repair and Maintenance of Civil Works 38.83 43.29Repair and Maintenance of Lines, Cable Net Works etc 9.91 5.28Repair and Maintenance of Vehicles 2.62 5.05Repair and Maintenance of Furniture and Fixures 2.31 0.77Repair and Maintenance of Office Equipment 10.01 4.36

- -Establishment Expenses - -



� �[115]



Rent Rates and Taxes 18.62 40.87Insurance 171.51 239.60Telephone Charges, 4.65 10.32Postage.Telegram& Tele Charges 3.73 1.20TaxAudit Fees 0.52 0.23Legal charges 11.45 3.02Audit Fee 10.07 3.24Consultancy charges 12.93 6.61Technical Fee 0.01 1.94Other Professional Charges 7.95 1.37Conveyance and Travel 70.51 71.25Other administrative expenses (except 76.130) 700.36 598.00Freight - 0.30Other Purchase related expenses 4.24 0.23Other misc. expenses 20.03 1.39Bad debts written off - 2.25Miscellaneous losses written off - -Total 4,174.49 3,480.63Less:- Administration and General Expenses capitalised - -Total (C ) 4,174.49 3,480.63

Prior period incomesFuel Related Gain On Prior Period Transaction 16.30 -Receipt from customers relating prior period - -Interest income for prior period - -Excess Provision for depreciation in prior periods 7.06 1.90Interest and finance charges in prior periods 19.54 480.81Other Excess Provision 458.48 -Other income relating to prior period 78.62 52.88Sub-Total-1 580.00 535.59Prior period expensesFuel related expenses/losses relating to prior periods - 860.83Operating expenses for Prior Period 669.42 -Employee cost relating to Prior Period - 51.72Prior Priod Depreciation Charges 104.22 -Interest relating to Prior Period - -Other charges relating to Prior Period 82.10 390.66Sub-Total-2 855.74 1,303.22Prior period items 275.73 767.63

Net Total 4,450.22 4,248.26


� �[116]

(a) Prior period income includes:-(i) Withdrawal of excess provision of depreciation of Rs.7,05,978/-.(ii) Withdrawal of excess Interest & finance charge in prior period of Rs.19,54,429/-.(iii) Withdrawal of excess booking as R&M expenses of Rs.42,92,548/-.(iv) Withdrawal of excess booking as R&M expenses of Rs.4,15,52,220/-.(v) Withdrawal of excess provision of cost audit fee of Rs. 3,000/-.(vi) Refund received from IT Dept. of Rs. 48,76,243/-.(vi) Refund received from ITDept. forAY 2015-16 of Rs. 29,86,190/-.

(b) Prior period expense includes:-(i)ExpensesonOverhaulingofGT#3atLTPScorrectedasper commentsofStatutoryAuditorRs. 4,87,16,783/-(ii) Depreciation under provided in prior period adjusted as commented by StatutoryAuditor and C&AG forRs. 1,04,21,933/-

(iii) Excess TDS on Fixed Deposit booked in 2016-17 , adjusted for Rs. 48,910/-(iv) Short Provision for Income-Tax in prior periods adjusted for Rs. 34,72,819/-(v) Short provision forAudit fees for FY 15-16 & FY 16-17 adjusted for Rs. 1,18,018/-(vi)Rebate received fromPFCLagainstNRPPadjustedaspercommentsofStatutoryAuditor forRs.1,81,76,449/-(vii) Administration expenses relating to prior periods of Rs. 46,18,688/-

22. DEPRECIATION AND AMORTIZATION EXPENSE


Building 148.70 176.57Hydraulic 940.83 898.05Other civil works 530.36 526.43Plant & machinery 1,986.02 1,934.97Lines & cable network 127.26 135.46Vehicles 3.03 3.76Furniture & fixtures 5.22 4.50Office equipment 10.22 8.46Roads on land belonging to others 2.68 0.09Capital spares at generating stations 275.91 643.08Total 4,030.24 4,331.37


23. FINANCE COSTS


Interest ExpensesInterest on State Govt. Loan 5,223.64 3,476.32Interest on State Govt. Loan - Penal Interest 871.00 588.59Interest on PFC Loan 5,204.47 5,189.78Interest onADB Loan 189.07 7.80Interest on GPF 496.96 545.26Less:Interest Capitalised 4,704.39 4,106.32Total 7,280.75 5,701.44



� �[117]


Other Borrowing Costs

Bank charges 3.95 12.44Other Costs 0.04 -

Total 3.99 12.44

Total 7,284.75 5,713.88


26.1 Under �Interest Expenses�, an amount of Rs.31,26,89,901/- has been capitalised against PFC loan of NRPP.26.2 Under �Interest Expenses�, an amount of Rs.5,91,08,636/- has been capitalised against State Govt. Loan.

24. Basic Earning/(Loss) per share (�EPS�)Basic EPS amounts are calculated by dividing the profit/(loss) for the year attributable to equity holders of thecompany by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit/(loss) attributable to equity holders of the Companyby the weighted average number of Equity shares outstanding during the year plus the weighted averagenumber of Equity shares that would be issued on conversion of all the dilutive potential Equity shares intoEquity shares.The following reflects the profit/(loss) and share data used in the basic and diluted EPS computations :

ParticularsFor the Year endedMarch 31, 2017Rs. in Lakh

Net profit/(loss) for calculation of basic and diluted EPS (Rs.) 204,110,644 172,089,532

Total number of equity shares outstanding at the end ofthe year 45,585,975 45,585,975

Weighted average number of equity shares in calculatingbasic and diluted EPS 45,585,975 45,585,975

Basic and diluted EPS (Rs.) 4.48 3.78



� �[118]

Assam Power Generation Corporation LimitedNotes to the Ind AS financial statements as at and for the year ended March 31, 2018

25. DISCLOSUREOFSIGNIFICANTACCOUNTING JUDGEMENTS, ESTIMATESANDASSUMPTIONSThe preparation of the Company�s financial statements requires management to make judgements,estimates and assumptions that affect the reported amounts of revenues, expenses, assets and li-abilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertaintyabout these assumptions and estimates could result in outcomes that require a material adjustment tothe carrying amount of assets or liabilities affected in future periods.

Judgements, estimates and assumptionsThe judgements and key assumptions concerning the future and other key sources of estimationuncertainty at the reporting date, that have a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities within the next financial year, are described below. The Com-pany based its judgements, assumptions and estimates on parameters available when the financialstatements were prepared. Existing circumstances and assumptions about future developments, how-ever, may change due to market changes or circumstances arising that are beyond the control of theCompany. Such changes are reflected in the assumptions when they occur.

TaxesDeferred tax assets are recognized for unused tax losses to the extent that it is probable that taxableprofit will be available against which the losses can be utilized. Significant management judgement isrequired to determine the amount of deferred tax assets that can be recognized, based upon the likelytiming and the level of future taxable profits together with future tax planning strategies.

The Company is having history of losses and unabsorbed depreciation that may not be used to offsettaxable income The Company does not have any tax planning opportunities available that could partlysupport the recognition of these losses as deferred tax assets. On this basis, the Company has deter-mined that it cannot recognize deferred tax assets on the tax losses carried forward and unobsorbeddepriciation.

Fair value measurement of financial instrumentsWhen the fair values of financial assets and financial liabilities recorded in the balance sheet cannot bemeasured based on quoted prices in active markets, their fair value is measured using valuation tech-niques including the DCF model. The inputs to these models are taken from observable marketswhere possible, but where this is not feasible, a degree of judgement is required in establishing fairvalues at each reporting date. Judgements include considerations of inputs such as liquidity risk, creditrisk and volatility. Changes in assumptions about these factors could affect the reported fair value offinancial instruments.


� �[119]

26. FAIR VALUES

The Company assessed that cash and cash equivalents, trade receivables, other bank balances, tradepayables, fixed rate borrowings, current maturity of long term borrowings, interest accrued but not dueon borrowings, interest accrued but due on borrowings, dues payable towards purchase of property,plant and equipment, vehicles loan, security deposit, loan to employees, loans and advances etc. ap-proximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrumentcould be exchanged in a current transaction between willing parties, other than in a forced or liquidationsale.

27. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIESThe Company�s principal financial liabilities, comprise trade and other payables. The main purpose ofthese financial liabilities is to finance the Company�s operations and to provide guarantee to support itsoperations. The Company�s principal financial assets include loans, trade and other receivables, andcash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company�s senior manage-ment oversees the management of these risks and also ensure that the Company�s financial risk activi-ties are governed by appropriate policies and procedures and that financial risks are identified, mea-sured and managed in accordance with the Company�s policies and risk objectives.

The Board of Directors reviews and agrees policies for managing each of these risks, which are sum-marized below:

Market riskMarket risk is the risk that the fair value of future cash flows of a financial instrument will fluctuatebecause of changes in market prices. Market risk comprises of interest rate risk. Financial instrumentsaffected by market risk include deposits.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018, March 31,2017 andApril 1, 2016.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixedto floating interest rates of the debt are all nearly constant at March 31, 2018, March 31, 2017 and April1, 2016.


� �[120]

The analysis exclude the impact of movements in market variables on: the carrying values of gratuityand other post-retirement obligations, provisions.

The sensitivity of the relevant profit and loss item is the effect of the assumed changes in the respectivemarket risks. This is based on the financial assets and financial liabilities held as of March 31, 2017,March 31, 2016 andApril 1, 2015.

a. Interest rate riskInterest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecause of changes in market interest rates. The Company�s exposure to the risk of changes in marketinterest rates relates primarily to the long-term debt obligations with floating interest rates.

Interest rate sensitivityThe following table demonstrates the sensitivity to a reasonably possible change in interest rates onthat portion of loans and borrowings affected. With all other variables held constant, the Company�sprofit/(loss) before tax is affected through the impact on floating rate borrowings, as follows:

Particulars Increase / decreasein basis points

Effect on profitbefore tax

March 31, 2018INR +50 bps (44,731,664)INR -50 bps 44,731,664

March 31, 2017INR +50 bps (36,982,599)INR -50 bps 36,982,599

The assumed movement in basis points for the interest rate sensitivity analysis is based on the cur-rently observable market environment, showing a significantly higher volatility than in prior years.

b. Credit riskCredit risk is the risk that counterparty will not meet its obligations under a financial instrument orcustomer contract, leading to a financial loss. The Company is exposed to credit risk from its operatingactivities (primarily trade receivables) and from its financing activities, including deposits with banksand financial institutions and other financial instruments.

Trade receivablesCustomer credit risk is managed subject to the Company�s established policy, procedures and controlrelating to customer credit risk management. Credit quality of a customer is assessed based on indi-vidual credit limits are defined in accordance with this assessment. The entire sale of the company ismade to APDCL (A Govt. of Assam company)


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Financial instruments and cash depositsCredit risk from balances with banks and financial institutions is managed by the Company�s treasurydepartment in accordance with the Company�s policy. Investments of surplus funds are made in depos-its only with approved banks/mutual funds/commercial papers and within limits assigned to each bankby the Company.

Liquidity riskLiquidity risk is the risk that the Company will encounter in meeting the obligations associated with itsfinancial liabilities that are settled by delivering cash or another financial asset. The approach of theCompany to manage liquidity is to ensure ,as far as possible, that these will have sufficient liquidity tomeet their respective liabilities when they are due, under both normal and stressed conditions, withoutincurring unacceptable losses or risk damage to their reputation.

The Company monitors its risk of a shortage of funds through fund management exercise at regularintervals.

The table below summarizes the maturity profile of the Company�s financial liabilities based on contractualundiscounted payments.

As at March 31, 2018 On demand Less than1 year

1 to 3years

3 to 5years

> 5 years Total

(Rs. In Lakh)

Other financial liabilitiesInterest accrued and due onborrowings 23942.90 - - - - 23942.90Interest accrued and not due onborrowings - 240.01 - - - 240.01Trades and other payables* -Trades payables (including duespayable towardspurchaseof property,plant and equipment) - 4004.20 - - - 4004.20

As at March 31, 2017 On demand Less than1 year

1 to 3years

3 to 5years

> 5 years Total

Other financial liabilitiesInterest accrued and due onborrowings 17872.99 - - - - 17872.99Interest accrued and not due onborrowings - 9.59 - - - 9.59Trades and other payables* - - - - -Trades payables (including duespayable towardspurchaseof property,plant and equipment) - 3727.57 - - - 3,727.57

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As at April 1, 2016 On demand Less than3month

3 to 12months

3 to 5years

> 5 years Total

Other financial liabilitiesInterest accrued and due onborrowings 14216.23 - - - - 14216.23Interest accrued and not due onborrowings - 17.93 - - - 17.93Trades and other payables* - -Trades payables (including duespayable towardspurchaseof property,plant and equipment) - 23371.80 - - - 23371.80

*Trade payables are interest bearing and are normally settled on 15-30 days terms, however as perterms of agreements with certain vendors, the credit period may extend beyond normal terms.

28. CAPITALANDOTHERCOMMITMENTS


Estimated amount of contracts remaining to be executedon capital account and not provided for (net of advances) 18,179.58 37,649.00


29. CONTINGENT LIABILITIES / LITIGATIONS :(I) Oil India Ltd. by its mail dt. 18/05/2018 has claimed the following amount as due from the

company in addition to the due payable for supply of natural gas.

For LTPS : 146.92 CroreFor NTPS: 74.76 Crore

(II) Assam Gas Company Ltd. by its mail dated 23/5/2018 has raised the following claims in additionto its due against its regular bill for transportation /transmission of Gas & supply of Gas.

LTPS : Rs. 55.63 CroreNTPS : Rs. 9.40 Crore

APGCL on contrary has raised a debit note to AGCL for an amount of Rs. 4121.22 lac vide letterNo.APGCL/LTPS/GM/2015/T-13 (A)/332 dt. 12/06/2015 for its failure to transport the compressedGas with adequate flow and charging rate for transportation of compressed gas instead rate foruncompressed Gas. The claims are disputed and hence no provision against the above claim ofAGCL is made.

(III) For implementation of MSHEP, 233 begha 1 katha & 5 lecha of land was handed over by DankaCircle to APGCL after payment of land allotment fee of Rs. 58313/- & at the time of handing overpossession there was no intimation of adverse possession & no list of effected people was pro-vided & question of land compensation was not raised. Later during implementation period

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Terenglangso project & Development Committee started demanding compensation to effectedpeople & final amount of such demand is Rs. 858.00 lac .According to the Deputy Commissioner,Karbi Anglong Autonomous council there were flaws in determination of compensation amountand need review for amicable settlement. The matter is still under settlement. The land is alreadyin possession & part of the project is under construction & part is already under production. Noprovision against this probable land compensation is made in the account.

30. CAPITAL MANAGEMENT

For the purpose of the Company�s capital management, capital includes issued equity capital,share premium and all other equity reserves attributable to the equity holders of the Company.The primary objective of the Company�s capital management is to maximize the shareholdervalue.

The Company manages its capital structure and makes adjustments in light of changes in eco-nomic conditions and the requirements of the financial covenants, if any. To maintain or adjust thecapital structure, the Company may adjust the dividend payment to shareholders, return capital toshareholders or issue new shares. The Company monitors capital using a gearing ratio, which isnet debt divided by total capital plus net debt. The Company policy is to keep gearing ratio between20% to 40%. The Company includes within net debt, interest bearing loans and borrowings, lesscash and cash equivalents.

30.(A) SEGMENT INFORMATION

The Company is primarily engaged in a single business segment of manufacture and sale of powerand hence this is the only reportable primary business segment. Since the entire sales of the Com-pany are affected in the domestic market, there is only one reportable geographical segment i.e. India.

The Company has common property, plant and equipment, other assets and liabilities for domestic aswell as overseas market. Hence, all assets and liabilities have been considered as for India (based onlocation of assets).

There are no revenues from transactions with a single external customer amounting to 10 per cent ormore of an entity�s revenues during the current and previous year.

Particulars As at March31, 2017

As at March31, 2016

As at March31, 2018

Borrowings (refer note 10 & 13(II)) 94069.95 84856.71 63073.69Less: Cash and cash equivalents(refer note 6(II)) 12569.08 11711.03 3945.97Net debt 81500.87 73145.68 59127.72

Equity share capital (refer note 8) 45585.98 45585.98 45585.98Other equity (refer note 9) 78114.35 48757.01 22741.34Capital and net debt 205201.20 167488.66 127455.04Gearing ratio 40% 44% 46%

(Rs. In Lakh)

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31. DEFERRED TAX ASSET

The Company has deferred tax assets (primarily representing unabsorbed depreciation and lossesunder income tax law) in excess of deferred tax liabilities. In the absence of virtual certainty that suffi-cient future taxable income would be available against which such deferred tax assets can be realized,the Company has not recognized the net deferred tax assets.

32. FIRST-TIME ADOPTION OF IND AS

These Ind AS financial statements for the year ended March 31, 2018 are the first the Company hasprepared in accordance with IndAS. For periods up to and including the year endedMarch 31, 2017 theCompany prepared its financial statements in accordance with accounting standards notified undersection 133 of the Companies Act 2013 read together with paragraph 7 of the Companies (Accounts)Rules 2014 (Indian GAAP).

Accordingly the Company has prepared Ind AS financial statements which comply with Ind AS appli-cable for periods ending on March 31, 2018 together with the comparative period data as at and for theyear endedMarch 31, 2017 as described in the summary of significant accounting policies. In preparingthese Ind AS financial statements the Company�s opening balance sheet was prepared as at April 1,2016 the Company�s date of transition to Ind AS. This note explains the principal adjustments made bythe Company in restating its Indian GAAP financial statements including the balance sheet as atApril 1,2016 and the financial statements as at and for the year ended March 31, 2017.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certainrequirements under Ind AS. The Company has applied the following exemptions:

a) Deemed Cost

Ind AS 101 permits a first time adopter to elect to fair value on its property plant and equipment asrecognized in the Ind AS financial statements as at the date of transition to Ind AS measured as perprevious GAAP and use that as its deemed cost as at the date of transition or apply principles of IndASretrospectively. IndAS 101 also permits the first time adopter to elect to continue with the carrying valuefor all of its property plant and equipment as recognized in the financial statements as at the date oftransition to IndAS.

The Company has elected to measure all its property plant and equipment at their previous GAAPcarrying value.

b) Business Combination

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from aspecific date prior to the transition date. This provides relief from full retrospective application that wouldrequire restatement of all business combinations prior to the transition date.

The Group elected to apply Ind AS 103 prospectively to business combinations occurring after its tran-sition date. Business combinations occurring prior to the transition date have not been restated.

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c) EstimatesAn entity estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent withestimates made for the same date in accordance with previous GAAP (after adjustments to reflect anydifference in accounting policies) unless there is objective evidence that those estimates were in error.

Ind AS estimates at April 1, 2016 are consistent with the estimates as at the same date made in conformitywith previous GAAP.

33. The Company has earned a profit of Rs.20,41,10,644/- (March 31, 2017 : Rs.17,20,89,532/-) for the yearended March 31, 2018 and its net current assets stands at Rs.5,49,49,90,621/- (March 31, 2017 :Rs.3,07,60,36,920/-) as at the year end.

34. Disclosure as per Ind AS-24�Related party Disclosure�(a) KeyManagerial Personnel:

i) Sri S.N Kalita: Chief Financial Officer.ii) Smti Nayana Das: Company Secretary

(b) Managing Director�s & KeyManagerial Personnel�s Remuneration:

35. Operational Performance:The operational performance of the company is detailed inAnnexure-A.

36. Disclosures vide notification No.GSR 719(E) of Ministry of CorporateAffairs dated 16-11-07:

Outstanding amount to fuel suppliers of APGCL as on 31-03-18 in rupees crore is as tabulated below �

There are no suppliers inAPGCLwho fall underMicro, Small &MediumEnterprises DevelopmentAct, 2006.

37. In the Tariff Order passed by AERC on 31st March, 2017, the Commission has approved an amount of .62.15 Crore as revenue surplus which needs to be adjusted with APDCL against SOP. Accordingly, theamount of . 62.15Crore was adjustedwith the total SOPof theCompany for the FY2016-17. However, in theReviewOrder dated 07-09-2017, theHon�ble Commission re-calculated the revenue surplus of . 62.15Croreto . 25.08 Crore. Hence the difference figure of . 37.07 Crore (.62.18 Crore- . 25.08 Crore) is adjusted in thisFY 2017-18.

38. The Revision of Pay of the Company has been took place w. e. f. 01-04-2016 vide O/o No. MD/APDCL|PC/23 6/20 | 7 / 45 dated l2/12/2017 and the revised pay are disbursed from themonth of Dec�2017. So, for theperiod fromApril�2017 to November�2017, an amount of . 6.64 Crore has been provided in theAnnual Ac-counts 2017-18 against the employee cost due to implementation of Revision of Pay.

Particulars SalaryCurrent Year Previous Year

Sri R. Kalita NIL 13,78,555Smti Kalyani Baruah 16,36,571Sri S.N Kalita 3,79,676Smti Nayana Das 11,57,523Total: 31,73,770 13,78,555

Supplier Outstanding principal Outstanding interest Total (in Rupees)

OIL 11.65 11.65

GAIL 2.51 2.51

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39. In respect of Gratuity to the employees fall under NPS, a provision has been made in the Accounts for anamount of . 8.52 Crore.Leave encashment benefit of employees under NPS are entitled at the time of retirement/ superannuation ofthe employee. During the period of service the employees avail earned leave at various time as per theirneed as well as per due approval of the competent authority. So, the ascertainment of the balance leaveearned at the end of the year by each employee is not feasible and hence no provision for leave encashmentbenefit is provided in the accounts.However, the Company is going to implement ERP in near future. As soon as ERP starts, we will be able tomade provision for leave encashment benefit.

40. Asian Development Bank (ADB) is fundingAPGCL for setting up of new thermal project at LTPS premisesin the name �Lakwa Replacement Power Project (LRPP)�. During the year 2017-18, ADB has released.90.60Crore against LRPP.The interest is bookedunderCWIPat a rate equivalent to theStateGovt. Loan rate.

41. Value of imports calculated on C.I.F. basis :Value of imports calculated on C.I.F. basis incurred during the year 2017-18 on import of Capital goods is .14,22,17,696/-.

42. Expenditure in foreign currency:TheExpenditure in foreigncurrency incurredduring theyear2017-18on importofcapitalgoods is .16,11,92,824/-.

43. Number of employeeswhoare in receipt of emoluments aggregating to . 60,00,000/- per annumor . 5,00,000/-per month as per Companies (Particulars of Employees) Rules, 1975 is NIL.

44. An amount of . 3,00,00,000/- was sanctioned as overdraft by pledging fixed deposit of . 3,00,00,000/- withState Bank of India, NewGuwahati Branch.

45. The Company prepares Bank Reconciliation Statement regularly for each bank a/c in its name.

46. Details of remuneration to Auditors:

Particulars Amount including Service Tax ( in . )StatutoryAudit Fee 3,24,500.00Cost Audit Fee 51,600.00TaxAudit 29,500.00Total 4,05,600.00

As per our separate report of even date

For P. K Sharma & Associates For and on behalf ofCharteredAccountants Assam Power Generation Corporation LimitedFirmRegistration No. 316044E

PartnerMembership No.:Place :Date :

(Smti Nayana Das)Company Secretary



(Shri S.N. Kalita)Chief financial officerPlace : GuwahatiDate : 13th July�2018

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ASSAMPOWERGENERATIONCORPORATIONLIMITED

Notes to the Ind AS financial statements as at and for the year ended March 31, 2018

The following reconciliations provides the effect of transition to Ind AS from IGAAP in accordance withIndAS 101:

47.Reconciliation of equity as at April 1, 2016

Particulars Footnotes As at April 1,2016 (IGAAP)(Rs. In Lakh)

Ind ASadjustments(Rs. In Lakh)

Reclassifica-tion

(Rs. In Lakh)

As at April 1,2016 (Ind AS)(Rs. In Lakh)

ASSETSNon-current assetsProperty, plant and equipment 63,899.19 - - 63,899.19Capital work-in-progress 79,533.79 - - 79,533.79Other non-current assets 2,797.68 - - 2,797.68

146,230.66 - - 146,230.66Current assetsInventories 7,439.86 - - 7,439.86Financial assets - - - -Trade receivables 20,233.41 - - 20,233.41Cash and cash equivalents 3,945.97 - - 3,945.97Bank balances other than 7(ii) above 14,700.25 - - 14,700.25Loans 5,758.95 - - 5,758.95Other financial assets - - - -

Income tax assets (net) 37.63 - - 37.63Other current assets 8,397.78 - - 8,397.78

60,513.84 - - 60,513.84

Total assets 206,744.50 - - 206,744.50

EQUITYANDLIABILITIESEquityEquity share capital 45,585.98 - - 45,585.98

Other equity 22,741.34 - - 22,741.3468,327.32 - - 68,327.32

LiabilitiesNon- current liabilitiesFinancial liabilities - - -Borrowings 63,073.69 - - 63,073.69Deferred tax liabilities (Provision for MAT) 23.77 - - 23.77Provisions 5,439.71 - - 5,439.71Government grants - - - -Other non current liabilities 6,770.67 - - 6,770.67

75,307.83 - - 75,307.83Current liabilitiesFinancial liabilities

Trade payables 23,371.80 - - 23,371.80Other financial liabilities 23,561.89 - - 23,561.89

Other current liabilities 14,910.34 - - 14,910.34Provisions 1,265.32 - - 1,265.32

63,109.35 - - 63,109.35

Total equity and liabilities 206,744.50 - - 206,744.50

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Reclassifica-tion

(Rs. In Lakh)


ASSETSNon-current assetsProperty, plant and equipment 60,488.05 - - 60,488.05Capital work-in-progress 100,825.07 - - 100,825.07Other non-current assets 1,279.46 - - 1,279.46

162,592.57 - - 162,592.57Current assetsInventories 6,733.42 - - 6,733.42Financial assets - - - -

Trade receivables 26,283.11 - - 26,283.11Cash and cash equivalents 11,711.03 - - 11,711.03Bank balances other than 7(ii) above 33,494.32 - - 33,494.32Loans 5,836.14 - - 5,836.14Other financial assets - - - -

Income tax assets (net) 90.20 - - 90.20Other current assets 9,799.91 - - 9,799.91

93,948.12 - - 93,948.12

Total assets 256,540.70 - - 256,540.70EQUITYANDLIABILITIESEquityEquity share capital 45,585.98 - - 45,585.98Other equity 48,757.01 - - 48,757.01

94,342.98 - - 94,342.98LiabilitiesNon- current liabilitiesFinancial liabilitiesBorrowings 84,856.71 - - 84,856.71Deferred tax liabilities (Provision for MAT) 881.35 - - 881.35Provisions 6,879.31 - - 6,879.31Government grants - - - -Other non current liabilities 6,392.60 - - 6,392.60

99,009.96 - - 99,009.96Current liabilitiesFinancial liabilities

Trade payables 3,727.57 - - 3,727.57Other financial liabilities 29,832.65 - - 29,832.65

Other current liabilities 14,983.38 - - 14,983.38Provisions 14,644.15 - - 14,644.15

63,187.75 - - 63,187.75

Total equity and liabilities 256,540.70 - - 256,540.70

48. Reconciliation of equity as at March 31, 2017

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Reclassifica-tion

(Rs. In Lakh)


IncomeRevenue fromoperations 53,447.41 - - 53,447.41Other income 1a 1,815.16 - 1,644.38 170.78Finance income 1a - - (1,644.38) 1,644.38

Total Income (I) 55,262.58 - - 55,262.58- - - -

Expenses - - - -Cost of rawmaterials consumed - otherthan lubricants 28,877.55 - - 28,877.55Costof rawmaterialsconsumed- lubricants 62.45 - - 62.45Employee benefits expenses 9,841.25 - - 9,841.25Other expenses 4,248.26 - - 4,248.26Depreciation and amortization expense 4,331.37 - - 4,331.37Finance costs 5,713.88 - - 5,713.88

Total Expenses (II) 53,074.77 - - 53,074.77- - - -

Profit/(Loss) before exceptional itemsand tax (I-II) 2,187.81 - - 2,187.81Exceptional Item - -Profit/(Loss) before tax 2,187.81 - - 2,187.81Tax expenseCurrent tax 466.91 - - 466.91MAT credit entitlement - - - -DeferredTax - - - -Prior year tax charge - - - -Total tax expense 466.91 - - 466.91

Profit/(Loss) for the year 1,720.90 - - 1,720.90Other comprehensive income/(loss)(i) Items that will not be reclassified toprofit or loss - - - -- Re-measurement gains/(loss) ondefined benefit plans - - - -(ii) Income tax relating to items that willnot be reclassified to profit or loss - - - -Othercomprehensive income/(loss) for - - - -

Total comprehensive income/(loss)for the year 1,720.90 - - 1,720.90

49. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017

Footnotes :

1. Reclassificationa. Interest on Investment (FixedDeposit) - Rs.15,38,40,096/-, Interest onHouse BuildingAdvances to Staff - Rs.3102/-Interest from Banks (other than interest on fixed deposits) - Rs. 278,970/-, Rebate received for timely payment ofdues of loans, interest, etc. - Rs. 1,03,15,782/- has been reclassed from Other income to Finance income.

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Sl. Particulars Previous Year This YearNo. 2016-17 2017-18

ASSAMPOWERGENERATIONCORPORATIONLIMITEDANNEXURE -A

OPERATIONAL PERFORMANCE

1 Installed Capacity (MW)(a) Thermal(b) Hydel 103 103.00(c) Gas 273.5 246.45Total 376.5 349.45

2 Power Generated (MU)(a) Thermal(b) Hydel

KLHEP 397.130 490.057MSHEP 5.725 10.739

(c)GasNTPS 356.352 325.652LTPS 891.400 663.401

Total Generation (MU) 1650.607 1489.8483 Auxiliary Consumption (MU)

(b) HydelKLHEP 1.986 2.450MSHEP 0.057 0.107

(c)GasNTPS 23.168 19.252LTPS 68.136 53.490

Total Auxiliary Consumption (MU) 93.347 75.3004.a Total power available for sale (MU) 1557.260 1414.5484.b Grand Total power available for sale (MU) 1557.260 1414.5485 Power sold (MU) 1557.260 1414.5486 Units generated per MW of installed capacity (in Lakh unit) 43.8 42.67 Plant Load Factor (%)

(a) Thermal(b) Hydel

KLHEP 45.33% 55.94%MSHEP 21.78% 40.86%

(c)GasNTPS 33.33% 33.06%LTPS 64.60% 54.31%

8 Percentage of generation to installed capacity(a) Thermal(b) Hydel 44.65% 55.50%(c)Gas 52.08% 45.81%

9 Fuela) Gas Consumption (MMSCM)

NTPS 166.648 154.317LTPS 268.101 245.43

b) Average calorific value of Gas (Kcal/SCM)NTPS 9032 8959LTPS 9902 9269

c) Gas Consumption per unit of generation (in SCM/Kwh)NTPS 0.4676 0.4739LTPS 0.3008 0.3700

(1) (2) (3) (4)

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Note: 20 MW Unit-1 of NTPS and 15 MW Unit-4 of LTPS were decommissioned on 24/10/2017. The installedCapacity of NTPS was 99.5 MW and that of LTPS was 127.2 MW after this decommissioning. Wtd. Avg. InstalledCapacity of NTPS and LTPS for the FY 2017-18 were 110.79 MW and 135.67 MW respectively.

2017-18 annual report 2017-18.pdfannualreportofapgcl2017-18 share capital : the authorized share...

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