gujarat energy transmission corporation ltd. · annual report 2011-12 1 ... place gujarat energy...

13thAnnual Report2011-12

1

GUJARAT ENERGY TRANSMISSION CORPORATION LTD.

13th Annual Report2011-12


Day & Date Monday 24th December, 2012

Time 12 : 00 Noon

Place Gujarat Energy Transmission Corporation Ltd.Conference Room,7th Floor, Sardar Patel Vidyut Bhavan,Race Course,Vadodara - 390 007.

CONTENT

Board of Directors 2

Notice 3-6

Director’s Report 7-31

Auditor’s Report 32-37

Balance Sheet 38

Profit & Loss Account 39

Cash Flow Statement 40

Schedule 41-71


2


BOARD OF DIRECTORS

Shri DJ. Pandian, IAS ChairmanShri S.K. Negi Managing DirectorShri Raj Gopal, IAS DirectorShri B.B. Swain, IAS DirectorMs. S. Aparna, IAS DirectorProf. Sebastian Morris DirectorShri Praful H. Rana DirectorShri D.N. Pandey, IAS Director (upto 03-08-2012)Shri Mukesh Puri, IAS Director (upto 02-07-2012)

BANKERS AND FINANCIAL INSTITUTIONS

UCO BankBank of BarodaCentral Bank of IndiaState bank of Bikaner & JaipurBank of IndiaCorporation BankOriental Bank of CommerceIndian Overseas BankSyndicate BankVijaya BankKalupur Com. Co-op Bank Ltd.Rural Electrification Corporation Ltd. (REC)Saraswat Co-op. Bank LtdNABARD

State Bank of IndiaDena BankState Bank of SaurashtraBank of MaharashtraCanara BankUnited bank of IndiaAllahabad BankIndian BankUnion Bank of IndiaKarur Vysya BankPower Finance Corporation Ltd. (PFC)GSFSSIDBI

AUDITORS (F.Y. 2011-12) COMPANY SECRETARYM/s. Prakash Chandra Jain & Co, Shri Nishant ShrivastavaChartered Accountants,Vadodara

REGISTERED OFFICE SENIOR EXECUTIVESSardar Patel Vidyut BhavanRace CourseVadodara- 390 007.

Shri B.B. Chauhan Chief Engineer (Projects)

Shri U.C. Patel Chief Engineer (Transmission)

Shri P.A. Patel Chief Engineer (Engg.)

Shri B.B. Mehta Chief Engineer (LD)

Shri B.C. Shah GM (F&A)

Shri Romi Bhatia GM (HR)


3


NOTICENOTICE is hereby given that the Thirteenth ANNUAL GENERAL MEETING of Gujarat Energy

Transmission Corporation Limited will be held on Monday, the 24th day of December, 2012

at 12.00 noon at the Registered Office of the Company at GETCO Conference hall, 7th

Floor, Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390007 to transact the following

business:

Ordinary Business:

1. To receive, consider and adopt the audited Balance Sheet as at 31st March, 2012

and Profit & loss Account for the year ended on that date and the Reports of the

Board of Directors and Auditors with comments of Comptroller and Auditor General

of India thereon.

2. To appoint a Director in place of Shri P.H. Rana who retires by rotation and being

eligible, offers himself for re-appointment.

3. To appoint a Director in place of Prof. S. Morris who retires by rotation and being

eligible, offers himself for re-appointment.

4. To decide the remuneration payable to Statutory Auditors, appointed by the

Comptroller and Auditor General of India, New Delhi (C&AG) for F.Y. 2012-13.

Special Business:

5. To consider and, if thought fit, to pass the following resolution with or without

modification, as an Ordinary Resolution:

“RESOLVED THAT Shri Raj Gopal, IAS who was appointed as an additional Nominee

Director of the Company on 17-09-2012 under section 260 of the Companies Act,

1956 and who holds such office up to the date of this Annual General Meeting, and

who is eligible for appointment, be and is hereby appointed as a Director of the

Company, and he shall not be liable to retire by rotation until such time, his nomination

is withdrawn by M/s. GUVNL in terms of Article 37 of the Articles of Association of

the Company.”


4


6. To consider and, if thought fit, to pass the following resolution with or without

modification, as an Ordinary Resolution:

“RESOLVED THAT Ms. S. Aparna, IAS who was appointed as an additional Director

of the Company on 20-11-2012 under section 260 of the Companies Act, 1956 and

who holds such office up to the date of this Annual General Meeting, and who is

eligible for appointment, be and is hereby appointed as a Director of the Company.”

By order of the Board For Gujarat Transmission Corporation Ltd.

Sd/- Company Secretary

Registered Office:Sardar Patel Vidyut Bhavan,Race Course, Vadodara – 390 007.

Date: 20-12-2012

NOTES :

1. A MEMBER ENTITLED TO ATTEND AND VOTE, AT THE MEETING IS ENTITILED

TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF, A PROXY

NEED NOT BE A MEMBER OF THE COMPANY.

2. Proxies, in order to be effective must be received by the Company at its Registered

Office not later than 48 hours before the time for holding of the meeting.

3. The Present Statutory Auditors M/s. Prakash Chandra Jain & Co, Chartered

Accountants, Vadodara, appointed by the Office of the Comptroller and Auditor

General of India (CAG) i.e. Central Government will retire at the conclusion of the

thirteenth Annual General Meeting. M/s. Prakash Chandra Jain & Co, Chartered

Accountants, Vadodara, have been appointed as the Statutory Auditors of the

Company for the current Financial Year 2012-13 by the Office of the Controller and

Auditor General of India (CAG) i.e. Central Government as the Company continues

to attract provisions of Section 617 read with the provisions of Section 619 (2) of the

Companies Act, 1956.


5


Annexure to the Notice

EXPLANATORY STATEMENT PURSUANT TO SECTION 173 OF THE COMPANIES ACT, 1956.

In conformity with the provisions of Section 173 of the Companies Act, 1956, the following Explanatory

Statement sets out all the material facts relating to the Special Business mentioned in the

accompanying Notice and should be taken as forming part of the Notice.

Item No .5

As a part of efforts towards restructuring of the Power Sector, and in order to meet the

upcoming challenges, the Management desires to constitute the Board of Directors comprising

of the team of Professional in the Technical, Financial, Administration and Management field

so as to shoulder the responsibilities under the new dispensation in the time of Power Sector

Reform.

Accordingly, the E&P Dept, Government of Gujarat vide its letter dated 15-09-2012 and

Gujarat Urja Vikas Nigam Limited vide its letter No. GUVNL/CS/325 dated 15th September,

2012 informed the nomination of Shri Raj Gopal, IAS, Managing Director, Gujarat Urja Vikas

Nigam Limited, as an Additional Non-Rotational Nominee Director representing GUVNL on

the Board of the Company vice Shri Mukesh Puri, IAS pursuant to Article 37 of the Articles of

Association of the Company. Accordingly Shri Raj Gopal, IAS was appointed as an Additional

Non-Rotational Nominee Director pursuant to section 260 of the Companies Act, 1956 and

w.e.f. 17th September, 2012. He holds the office as an Additional Non-Rotational Nominee

Director up to the date of this Annual General Meeting and is eligible for re-election at the

AGM.

Shri Raj Gopal is a senior IAS officer of 1987 batch. He is currently posted as Managing

Director of Gujarat Urja Vikas Nigam Limited the holding company of erstwhile GEB. He has

earlier worked in the Government of Gujarat in various departments like public transport,

geology & mining, rural development and commercial Taxes.

Shri Raj Gopal has post graduate qualifications in Business Administration and in Ecology &

Environment. He has also studied Law and has a Masters Degree in Germanic studies.

The Board recommends his appointment as Director of GETCO.

None of the Directors, except Shri Raj Gopal, IAS is concerned or interested in this resolution.

Item No .6

The Finance Dept, Government of Gujarat vide its letter No. JNV-10-2012-519725-A dated

03-10-2012 informed the nomination of Ms. S. Aparna, IAS, Secretary (EA) and Commissioner


6


(BPE), Finance Department as a Director on the Board of Gujarat Energy Transmission

Corporation Ltd. and accordingly Ms. S. Aparna, IAS was appointed as an Additional Director

pursuant to section 260 of the Companies Act, 1956 and w.e.f. 20-11-2012. She holds office

as an additional Director up to the date of this Annual General Meeting and is eligible for re-

election of the AGM.

Ms. S. Aparna is an IAS officer of 1988 batch. She has held various important positions in

the Government of Gujarat. She has a long, rich and varied experience of administration in

various areas. She is having a first class post Graduate degree in Zoology. She also has an

MBA degree from Swinburne University of Tech, Victoria. Your Directors, therefore,

recommend the resolution for your approval.

None of the Directors, except Ms. S. Aparna, IAS is concerned or interested in the said

Resolution

By order of the BoardFor Gujarat Transmission Corporation Ltd.

Sd/- Company Secretary

Registered Office:Sardar Patel Vidyut Bhavan,Race Course, Vadodara – 390 007.

Date : 20-12-2012


7


Directors Report

To,The Members,

Your Directors are pleased to present the THIRTEENTH ANNUAL REPORT together with the Audited

Annual Accounts for the Thirteenth Financial Year ended on 31st March, 2012.

Journey of the Company So far

The financial year 2011-12 coincided with end of 11th Five Year Plan and therefore it is appropriate

to evaluate performance in totality including outlook for 12th Five Year Plan.

The overall capacity building in transmission system including Renovation and Modernization (R&M)

has been quite substantial and performance of grid operation, in terms of system availability was

much above the target set by Hon’ble GERC in MYT.

98.6

98.8

99

99.2

99.4

99.6

99.8

100

% A

vaila

bili

ty

S/S 99.81 99.81 99.77 99.78 99.81 99.81

Line 99.19 99.41 99.35 99.51 99.57 99.53

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12


8


Energy demand in Gujarat is growing substantially year on year basis and today GETCO transmissionnetwork is handling 71,256 mu’s with a single day peak of 252 mu’s.

Our ARR is approved by Hon’ble Commission for a revenue of 1625.69 crore for the financial year2011-12 for capacity of 16,006 MW against 916.51 crore for capacity of 9981 MW in 2007-08, i.e. atthe beginning of 11th Five Year Plan.

Growth in terms of Substation: Each new substation is being added not only to cater the demandbut to supply quality power with reliability.

We have built 1270 no. of substation as on 31st March, 2012 compared to our position of 42 nos. ofsubstations in March, 1960, showing a Compounded Annual Growth Rate (CAGR) of 6.6 %.

The Voltage class wise substations existing in GETCO network as on 31st March, 2012 are asunder:

Sr. No. Voltage Class No. S/S Available

1960 2012

1 400 KV 0 11

2 220 KV 0 79

3 132 KV 0 49

4 66 KV/33 KV 42 1131

Total 42 1270

Growth in terms of Transmission Lines: Today, we own a vast network of EHV transmission linesranging from 66 KV to 400 KV. If we look at our past, we had only 1682 CKm of transmission linesin the year 1960 and that also only up to 66 KV lines. The transmission network since then hadexpanded gradually to 44946 CKM as on 31st March, 2012, recording a CAGR of 6.5%.

The voltage class-wise growth from 1960-61 to till 31st March, 2012 is as under:

Sr. No. Voltage Class Existing Network (Ckm)

1960 2012

1 400 KV 0 3187

2 220 KV 0 14852

3 132 KV 0 4807

4 66 KV/33 KV 1682 22099

Total 1682 44945

The above network is capable to receive power from State and Central Stations and deliver it to ourfour DISCOMs and EHV Consumers in a reliable manner on 24 x 7 basis with quality power supply.The transmission network is designed, planned and executed with latest state of art technologies tocontrol transmission losses.


9


I. Project Planning & Achievement for the year 2011-12 :

2011-12

Voltage Substation Tr. Lines (Ckm)

Class Planning Achievement Planning Achievement

400kV 0 - 403 535

220kV 4 5 1497 1198

132kV 1 1 92 26

66kV 85 74 1120 1492

Total 90 80 3112 3251

• Total 140 Nos. of substation of various voltage levels was planned for the constructionduring the F.Y. 2011-12 initially which was reduced to 90, but we completed only 80 nos ofsub-stations. Major bottleneck and constraint to achieve the target was refusal and takingback gaucher land by revenue deptt. leading to cancellation of civil tenders.

• Although we have shortfall in our target for sub-stations, we successfully achieved 3251CKm of transmission lines in spite of severe RoW issues against the target of 3112 CKm.

• In total, the strength of GETCO network comprises of 1270 nos. of sub-stations and 44,946Ckm of transmission lines as on 31st March, 2012.

• Under the scheme of TASP, 18 sub-stations were constructed and commissioned and 100% grant by GoG for TASP was utilized.

• Similarly, under the Coastal scheme, total 14 sub-stations were constructed andcommissioned.

• EHV sub-stations in strategic locations as per load growth were commissioned during theyear:

o 220 KV Charanka S/s, Dist. Patan

o 220 KV Kangasaiyali, Dist. Rajkot

o 220 KV Lalpar, Dist. Rajkot

o 220 KV Shapur, Dist. Junagadh

o 220 KV Lunawada, Dist. Panchmahal

o 132 KV Bhoomiyavadhar, Dist. porbandar

Important Power evacuation lines as per plan executed during the year:

Sr. No. Name of the Line Length Date of(CKM) Commissioning

1 400KV Vadinar(Essar)-Hadala 226 25.04.11

2 400KV LILO to Kosamba from Asoj-Ukai line 64 31.12.11

3 220KV Bhat - Pirana line 29 11.05.11

4 220KV LILO to Lalpar from Dhrangadhra - Morbi line 13 11.01.12

5 220KV Kosamba- Zagadia line 49 09.07.11

6 220KV LILO to Kangasiyali from Gondal - Rajkot line 28 27.06.11


10


• We achieved a Capex of ` 2086 crore (aprox.) against budget of ` 2441 crore.

Renovation and Modernization (R & M)

Renovation and Modernization (R&M) is one of the major initiatives of GETCO taken up in 11th fiveyear plan (2007-12), considering the following situation and ground reality:

• 1600 Kms of coastal line with wind pressure/ creek areas.

• Chemically polluted industrial zone.

• Challenge of uninterrupted & quality power supply on 24 X 7 basis due to frequentequipment failure and tripping of lines.

• Inadequate capacity and obsolete design.

• 31% of substations & 38% of Transmission lines were more than 20 years old.

7 220KV GSEG(Hazira) - Kosamba line 125 24.08.11

8 220KV Savarkundla - Otha LILO at GPPC line No. 1 91 17.03.12

9 220KV Bhutiya - Kheralu line 99 20.01.12

10 220KV D/C Sankhari - Jangral line 64 31.03.12

11 220KV D/C Charanka - Jangral line 29 28.02.12

12 220KV D/C Nyara - Tebhda line 180 30.03.12

Renovation & Modernization

0

50

100

150

200

250

300

Rs. I

n Cr

ore

Allocation 141.91 187.34 172.2 258.62 258.62

Expenditure 158.24 139.17 175.15 163.43 272.14

2007-08 2008-09 2009-10 2010-11 2011-12


11


Renewable Energy: Solar & Wind Capacity addition in the 11th FYP

Renewable Energy Scenario

30012884

2094

1782

1171

1484

6

601702

0

500

1000

1500

2000

2500

3000

3500

Ca

pac

ity in

MW

Wind Solar

Wind 1171 1484 1782 2094 2884 3001

Solar 6 601 702

2007-08 2008-09 2009-10 2010-11 2011-122012-13 (upto Nov-

2012)

Charanka Solar Park- A National Pride

A National Solar Mission under India’s National Action Plan on Climate Change (NAPCC) waslaunched and set a target to deploy 20,000 MW of Solar Power by the year 2022. In India, Gujaratin particular is one of the strategic locations where solar radiations of 5.5 to 6.00 kWh/sqm./day(300 sunny days/year) and 14.40 million acres of waste land in high solar radiation zone can contributein generating clean energy to fulfill demand-supply gap as well as integrate the social obligation.

Taking this as a base, Government of Gujarat (GoG) issued the Solar Power Policy-2009 and initiated“Solar Park” for development of Solar Power generation.

The installed capacity of Charanka Solar Park is 214 MW having maximum generation achieved upto 154 MW (i.e. 72%) on 29th April, 2012.

To build Gujarat Solar Park as world classinfrastructure, whole solar power evacuation networkscheme is designed on the basis of latest technologylike SCADA, GIS, Bay controller. Solar powerevacuation from 16 units of Solar plants has beenexecuted in looped underground in 66 KV cablenetwork, which is ultimately pooling the power in apooled 220/66 KV substation. The project wascompleted in a record time of 12 months.

-20

0

20

40

60

80

100

120

140

160

180

MW

Time

Charanka Solar Generation on 29.4.12


12


Being innovative project, Asian Development Bank has approved the loan of 100 Million US$ forfurther development of 400 KV system. The overall financial outlay of the above proposedtransmission scheme is estimated in Indian rupees to ` 600 crore, consisting of following:

(1) ADB loan of 100M US$ = ` 450 Crore

(2) GETCO contribution = ` 150 Crore

Improvement in Substation Engineering and Transmission Line EngineeringSubstation Automation System for EHV class substation using Bay Controller and SCADAcomplying with IEC 61850.

Digital Bay at 220 KV Jambuva S/s with optical CT for the first time in India.

Optical Fiber Ground Wire (OPGW) and FOTE to replace conventional Power Linecarrier Communication (PLCC).

Standardization of design and engineering drawing for substation layouts and equipmentsto optimize time schedule of execution.

Nitrogen Injection Fire Protection System (NIFPS) in transformers for safety.

State-of-art online diagnostic equipment and system.

Adoption of Gas Insulated Substation for 66 KV sub-stations

Adoption of 220 KV and 66 KV Hybrid switchgear technology

High Ampacity conductor AL- 59 for important 220 KV lines

Polymer insulator for 66 KV to 400 KV line in coastal areas.

Geographical Information System (GIS) for mapping of transmission assets.

66 KV Monopole design.

On-line Condition Monitoring technique for transformers

• Condition Monitoring techniques have been in existence in GETCO since 2007-08.

• Power Transformer is costly and major essential equipment in Transmission Network.The ultimate failure of a Power Transformer badly affects the associated adjoiningareas and lines.


13


• Condition Monitoring techniques are being used for EHV class Power Transformers.Considering Year - 2007-08 as the base line, we has averted failure of 21 nos. of powertransformers and thus saved investment of ` 5884 lacs from 2007 to 2012.

Solar Roof Top Power System

Solar Plant Monthly Generation

GETCO has commissioned grid connectivity of 10 KW - Solar Roof Top System at the followingsubstation for green energy.

(1) 220 KV Gondal ) : Average generation 36.01 kwh per day(2) 220KV Jambuva ) : Saving @ ` 24000 per month.(3) 220KV Anjar ) : Reduced aux. consumption

: Pay back period 10 years.

Safety

Safety is always a major concern for GETCO. Toreduce hazardous condition for operator, GETCO haspurchased 250 Nos. of Arc retardant suit. This willprotect the sub-station operator against arc at the timeof failure of indoor circuit breaker during operation.Such arc suit is protecting the operator against 10KCAL of energy.


14


II. Road Map for 2012-13:

Power being an essential and critical input for human life and inclusive growth of State, our plan forbuilding up capacity in transmission system as per need of DISCOMs remains a top priority alongwithR&M plans. Our target for 2012-13 is set to match generation capacity addition and load growthdemand projected by our DISCOMs.

• GETCO has planned to construct 80 nos. of sub-stations for the F.Y. 2012-13.

• Similarly 2942 Ckm of transmission lines are planned for erection during the said period.

The detailed outline of above plan is as under:

• Under TASP Scheme, 15 sub-stations are planned to be commissioned while 15 No. underCoastal Scheme.

• Considering land acquisition for the construction of substation as the first requirement, advanceactions have been initiated for land acquisition and we have been allotted land for 104 no. ofsubstations as on November, 2012.

• Plan for Capex utilization for the year 2012-13 is of ` 2332 crore.

III. State Load Dispatch Centre:

The State Load Dispatch Centre is the nerve centre for Real Time Operation by Monitoring &Controlling of Power System including major Grid Operational Activities such as Pre-DispatchActivity, Generation Scheduling and DISCOM’s Demand Scheduling. In addition to this, realtime operations in respect of controlling Frequency & Voltage, Tie Line Flows and GeneratorRegulation to ensure healthiness of the State Grid and economical power to the State ofGujarat are also the utmost responsibilities of SLDC. Highlights from the FY 2011-12 are asbelow:

1. 24 Nos. of Remote Terminal Units (RTU) were successfully installed for various SolarDevelopers and real time generation data could be seen.

2. 17 Nos. of RTUs were installed at GETCO Sub-stations during the year making a total of113 in our system.

3. SLDC has played an important role in the development of Renewable Energy Certificate(REC) Mechanism in the State.

4. ` 2656 Crore was handled in UI Pool Account i.e. 7.28 Crore per day.

5. 33 Engineers from SLDC passed basic level Power System Operation Examination,conducted by NPTI. The highest strength from any Utility in India.

Voltage 2012-13Class Substation Tr. Lines (Ckm)400kV 0 709

220kV 4 1280

132kV 1 29

66kV 75 924

Total 80 2942


15


System Details

1. Maximum demand catered is 11209 MW in October, 2011 and 12348 MW on 6th October,2012.

2. Average Frequency remained 49.81 Hz during the year (Maximum InstantaneousFrequency noted in May, 11 at 50.95 Hz and Minimum Instantaneous Frequency werenoted in Oct, 11 at 48.51 Hz).

3. Total of 71,256 MUs Energy Demand was catered.

Generation Capacity addition during FY 2011-12

Unit Capacity GUVNL Date of Date of Schedulingin MW Share in Maiden COD started

MW synch from

APL - 6 660 500 03-Jun-11 01-Feb-12APL - 7 660 02-Oct-11 APL - 8 660 09-Feb-12 APL - 9 660 05-Mar-12 Sipat Stage-IUnit - 1 540 180 01-Oct-11 01-Oct-11GSEG Stage -IIUnit - 1 350 350 24-Oct-11 Essar VadinarUnit - 1 600 500 24-Nov-11 22-Feb-12 ACB India Ltd.Unit - 1 135 100 06-Oct-11 13-Dec-11 01-Mar-12CGPL UMPPUnit - 1 830 394.25 08-Jan-12 07-Mar-12Wind Farm 600 Solar 549 Biomass 21 Total 6175

Short Term Open Access Granted during FY 2011-12

According to Open Access Regulation for Intra State, SLDC is the nodal agency for providing Short

Term Open Access (STOA) within Gujarat. The procedure for reservation of transmission capacity

under STOA is formulated and SLDC has processed Open Access applications during the period as

below:


16


Short Term Open Access granted from April’11 to March’12

Sr. Category No of Granted Total

No. Applications up to MUs

(MW)

1 Intra State Short Term Open Access 78 617.500 2177.988

2 Inter State Collective Transaction(PX) 610 3391.920 4046.377

3 Inter State Bilateral Transaction 499 999.900 6405.159

Total 1187 5009.32 12629.52

New Initiatives and technology upgradation

1. Initiative taken for development of new ABT Software with AMR (Automated MeterReading) solutions to address all challenges of SLDC arising out of various complexitiesin network, regulatory framework and increase in stakeholders towards market operation.

2. Development of Wide Area Monitoring System (WAMS) with the use of synchrophasordata to address all the challenges of SLDC towards system operation in a dynamicmanner.

3. New State of art computer servers acquired for critical ABT applications.

IV. Finance & Accounts:

Financial Results

The summarized financial results of the company for 2011-12 are given below:

Particulars [`̀̀̀̀ in Lakhs]2011-12 2010-11

Total Income 177750 143251

Total Expenditure 146616 116159

Profit before tax and Prior Period Adjustments 31134 27092

Less: Net Prior Period Expenses / (Income) (130) 518

Profit Before Tax 31264 26574

Provision for tax 6323 5516

Net Profit/(Loss) After Tax available for appropriation 24941 21058

During the previous financial year, turnover of the company is increased by 24.25% to ` 177750

lakhs from ` 143251 lakhs. The net profit after tax is increased by 18.44% to ` 24941 lakhs from

21058 lakhs during the previous financial year. The Gross asset Base of the company has been

enhanced to ` 954437 lakhs from ` 811655 lakhs in 2011-12.


17


Revenue

The major element of Revenue for the Company is Transmission Charges which is receivable fromGujarat Urja Vikas Nigam Ltd. (GUVNL), four DISCOMs and also from C.P.Ps using Transmissionnetworks. The expected revenue is fairly certain, as it has no variable component. During the year,GETCO has earned total revenue of ` 154823 lakhs and charged on percentage share of drawal toGUVNL, DISCOMs and C.P.Ps. etc. and the turnover and profit after tax for the year under reviewon this account booked are ` 154823 lakhs and ` 24941 lakhs respectively.

Dividend

Considering requirement of funds for future projects, system improvement and reserves available,the Directors did not recommend any dividend for the year.

Share Capital

The opening Balance of Share capital is ` 49471.67 lakhs. During the year 2011-12, the companyhas allotted further 1,66,66,666 Nos. of Equity shares of ` 10/- each fully paid up and as a result,Equity Share Capital of the company as on 31st March 2012 is ` 51138.33 Lakhs.

Further, during the year 2011-12, the company has received ` 8420 lakhs from GUVNL as shareapplication money.

Secured and Unsecured Loans

The Government of Gujarat (GoG) has apportioned total Loans of Erstwhile GEB as Long Term andShort Term Loans respectively which have been transferred to the successor transferee companies.In absence of specific Government Order for apportionment of secured loans and Multilateral Facilityand Securities Sharing Agreement between GUVNL, transferee Companies and Lenders, theseloans have been considered as Secured/Unsecured allocated loans from GUVNL.

During the year under report, Company has availed Secured/Unsecured loans from banks, PFC etcdirectly for its funding requirements. The same is shown under Current and Non Current Liabilitiesand there under Secured/Unsecured loans as per Security given.

Cost Auditor

The Government of India, Ministry of Company Affairs, Cost Audit Branch, New Delhi, in exercise ofpowers conferred u/s. 233 B(1), issued Cost Audit Order to audit Cost Accounting Records andBooks of Accounts maintained by the Company in respect of Electricity Industry. Accordingly, theBoard of Directors appointed M/s. R.K. Patel & Co. as Cost Auditors for the F.Y. 2011-12 which havebeen approved by the Central Government to conduct the Cost Audit of transmission of powerrelated Electricity Industry of the Company. M/s. R.K. Patel & Co. was reappointed as Cost Auditorsfor the F.Y. 2012-13 by the Board of Directors which has been approved by the Central Government.

Statutory Auditors

The Comptroller and Auditor General of India, New Delhi vide its letter No. CA V/COY/GUJARAT,GJETCL(1)/114 dated 18/08/2011, appointed M/s. Prakash Chandra Jain & Co., CharteredAccountants, Vadodara as Statutory Auditors of the Company to audit annual accounts of thecompany for the year ended 31st March, 2012. M/s. Prakash Chandra Jain & Co, Chartered


18


Accountants, Vadodara have been reappointed as the Statutory Auditor of the company for thecurrent Financial year 2012-13 by the Office of the Comptroller & Auditor General of India (C&AG)i.e. Central Government.

Auditors Report

The notes to the accounts referred to in the Auditor’s Report are self explanatory and therefore donot call for any further comments. The report/comments of the comptroller & Auditor General ofIndia pursuant to Section 619(4) of the Companies Act, 1956 are attached to this report as anaddendum forming part of this report.

Audit Committee

The Audit Committee in its 24th Meeting held on 24th September, 2012 has reviewed, consideredand recommended the Annual Accounts for the F.Y. 2011-12 to the Board which were placed beforethe Board of Directors for their consideration and approval.

Directors

Shri P.H. Rana and Prof. Sebastian Morris shall retire by rotation at the forthcoming Annual GeneralMeeting and is eligible for re-appointment. Further, during the year, Shri Raj Gopal, IAS MD GUVNLand Ms. S. Aparna, IAS, Secretary (EA) & Commissioner (BPE), Finance Dept, GoG were appointedas additional Director on the Board of GETCO. Also during the year, two Directors viz. Shri MukeshPuri, IAS, MD, GUVNL and Shri D.N. Pandey, IAS, Commissioner (BPE), & Secretary, FinanceDepartment, GoG have resigned from the Board of GETCO due to their transfer from their respectiveDepartment in GoG.

V. Regulatory Cell & Human Resource Development:

1. Regulatory Related activity for the year 2011-12 is as under

• Approval of True Up of 1st Control Period i.e. from FY 2008-09 to FY 2010-11 andDetermination of Tariff for FY 2012-13.

• GERC (Multi Year Tariff) Regulations, 2011 Notification No. 1 of 2011 dated 22nd March,2011 is introduced.

• GERC Terms and Conditions of Intra-State Open Access Regulations, 2011 NotificationNo. 3 of 2011 dated 1st June, 2011 is introduced.

• GERC Order No. 1 of 2012 In the matter of “Determination of tariff for Procurement bythe Distribution Licensees and others from Solar Energy Projects” dated 27/01/2012 isintroduced.

2. Commerce Related activities for the year 2010-11 is as under

• Applications for Long & Medium Term Open Access are being processed in time. Thereare 15 Nos. of Long Term Open Access consumers (Including DISCOM) and 5 Nos. ofMedium Term Open Access consumers having a quantum of 15330 MW is attached withGETCO Grid.


19


• Connectivity given to 12 Nos. of Captive Power Plant.

• Total 3 Nos. of Transmission Agreement has been signed in FY 2011-12.

• Capacity added in Captive Wheeling for Wind Farm is 262 MW (Total installed capacityof wind farm is 2883 MW up to 31st March 2012).

• During the year the Parallel Operation approval has been granted to 6 CPP holders.

• 3 Nos. of Biomass generating plants having a capacity of 20.5 MW is alreadycommissioned.

4 Total installed capacity of Solar is 554 MW as on 31st March 2012.

3. e-Urja and infrastructure

A. Online Asset Management module

• Allotment of asset (CT)

• Equipment defect report

• Condition Monitoring of Transformer for LA, LCM, DGA, Winding Tan-delta and BushingTan-delta

• Substation Equipment Details

B. New High-end Server Solution commissioned

• Intranet Application software successfully launched.

• Internet based Application software ICMS (Inspection Call Management System)successfully launched.

C. DAS System Modified

• Methodology of DAS (Data Acquisition System) is modified from Pull to Push with helpof Intranet availability.

D. Public Private Partnership

• GETCO has developed website for ITI at Amirgadh Taluka in Banaskantha District andlaunched as http://www.itiamirgadh.org/

VI. Human Resource Development:

Knowledge Management & Capacity Building through Training

Apart from the consistent approach for imparting training to the employees, many other activitieswere focused on knowledge management for the development of individuals and groups.

Training imparted during the year:

GETCO Strength Total Trained up to31st March, 2012

13,232 12344.


20


We have decided to call for self nominations with an objective that a person who isinterested shall only participate in the program. Few of such programs are as under:

One day Seminar on Smart Grid in Transmission was held on 23rd February 2012 atGETRI, Vadodara.

For knowledge enrichment, 101 young executives were given opportunity forCertification in Project Management from Project Management Institute, Noida. Outof 101, 23 Engineers have cleared the examination successfully.

Encouraging young Executives to participate in the paper presentation andcompetitions. 17 numbers of participants presented their papers. The winners wereawarded with Trophy on the Annual Day Function on 25th January 2012.

Interface with Vendors, Suppliers and Manufacturers.

Developing in-house departmental faculties for various internal training programs.

GETCO acquired institutional membership of Federation of Gujarat Industries (FGI),Baroda Management Association (BMA) and actively participating in various nationallevel programs.

4th Annual Day Programme

The 4th Annual Day Programme of GETCO Corporate was arranged on 25th January 2012.The Executives / outstanding performers in various areas of their functioning were felicitated.This was followed by a cultural programme by the employees.


21


Safety Awareness ProgrammeThe target of arranging safety awareness programme in each circle has been completedand has been very well received by one and all. Besides the employees and their familymembers, local public, government authorities and students also participated in the saidprogrammes.

HR DAY - A Proactive Approach to Grievance RedressalWe have earmarked a day i.e. 5th of every month in all circles, called as “HR DAY” in whichany individual can represent the grievance for redressal.

SportsWith a view to encourage participation in sports, during F.Y.2011-12 sports activities wereorganized in all the circles. There is an increase in the participation of men and women insports.

Celebration of ‘Company Day’To celebrate “Company Day” on 1st of April by GUVNL & all subsidiary Companies, variouscultural and sports events were organized in March, 2012. Winners of GETCO were felicitatedon the Company Day function.

Corporate Social ResponsibilitiesWe have initiated activities under CSR from the year 2009-10 in the areas of education,health & sanitation and general amenities. For the F.Y.2011-12 the progress of the projectsundertaken are as under:

Projects Executed in FY 2011-12

Sr. Details of ongoing Projects StatusNo.

1 Drainage line and road works of 8 villages Work Completed.under Amreli Circle.

2 Community Development in Charanka Village Dist. Under TenderizationPatan by Renovating & Upgrading existing Schooland providing primary health facility.

3 Development of land for school playground at village Under TenderizationLakhapar, Taluka Anjar.

4 Technical collaboration & assistance to Pandit Deendayal Under progressPetroleum University (PDPU) in a form of establishingan electrical laboratory.

5 Infrastructure building in group of primary Govt. schools Chapriyapura Prathamikunder educational program in Bhayali Shala Renovation

under Progress

6 Development work in 2 ITI’s (Amirgadh & Harij) underPublic Private Partnership (PPP) Scheme. Under Process

7 Jointly collaborative work with GETCO & Vadodara basedindustries to upkeep, clean, tree plantation, generalmaintenance, and safety of important roads in Vadodara.


22


Renovation of Primary School at Dhinod (Kosamba)


23


Renovation of Bhayali Station Primary School

VII. Transmission Network of Tomorrow- Plan for 12th FYP:

GETCO as a transmission Utility in the State of Gujarat has been assigned the role of StateTransmission Utility (STU) and carry out the functions specified in clause No. 39 (2) of ElectricityAct, 2003. Accordingly, transmission system planning has been done for the next five years takinginto account capacity addition in the State and projected demand of power. The following transmissionsystem elements have been curved out from the in-house system study of STU and they are alsoduly approved by Hon’ble GERC:

Important Transmission Network planned and approved for 12th FYP by Hon’ble GERC

Substation (Nos.)

Voltage 2011-12 2012-13 2013-14 2014-15 2015-16 TotalClass765 KV - - - - 1 1400 KV 1 - - 7 - 8220 KV 13 - - - - 13132 KV 2 - - - - 2066 KV 121 60 60 53 60 354Total 137 60 60 60 61 378


24


Voltage 2011-12 2012-13 2013-14 2014-15 2015-16 TotalClass765 KV - - 20 20 25 65400 KV 913 1998 1177 1098 210 5396220 KV 2000 783 496 181 - 3460132 KV 129 134 - - - 26366 KV 1780 1487 1260 1092 1260 6879Total 4822 4402 2953 2391 1495 16063

Transmission lines (Ckt Km)

Capex for 12th FYP:

• Vital EHV sub-stations plan to commission:

Sr. Name of Sub-station Voltage Ratio (KV/KV) Capacity (MVA)

No.

1 400KV Halvad 400/220/66 KV 2x315 & 1x100

2 220 KV Jarod 220/66 KV 2X100

3 220 KV Bhatiya 220/132/66 KV 3X100

4 220 KV Sadla (Chotila) 220/66 KV 1X 100

5 220 KV Mokha 220/66 KV 2X100

6 220 KV Bhachau 220/66 KV 2X100

7 220 KV Suva 220/66 KV 2X100


25


• Vital EHV transmission lines plan to commission:

VIII. Challenges and future outlook:

Land Acquisition

For 12th FYP, land acquisition for the construction of new sub-stations is going to be the

major challenge. The cost accompanied with the valuation of private land, will lead to a

major challenge for transmission Utility to expand the network.

Right of Way

Several of the GETCO projects have suffered loss of time for the completion of transmission

line projects due to severe protest by farmers and therefore Right of Way (RoW) will be

challenging task and major bottleneck for the future projects. As the electricity Act, 2003

mandates payment of compensation to such land owners where transmission line is laid for

the damage to crops and trees, whereas affected parties along and below the line treat this

as devaluation of land for future purpose.

Sr. Name of Tr. Line Type of Voltage LineNo. Ckt level length

(KV) (CKM)

1 400KV Mundra - Hadala LILO to Halvad D/C 400 89

2 400 KV Ukai – Kosamba D/C 400 144

3 LILO of 220KV Halvad-Morbi at 400KV

Bhimasar line-1 LILO 220 217

4 LILO of 220KV Halvad-Morbi at 400KV

Bhimasar line-2 LILO 220 216

5 220KV Hadala - Halvad line D/C 220 168

6 220KV Kosamba- Mobha line D/C 220 177

7 220KV LILO at Pipavav from

Savarkundla-Otha (Mahuva)-L2 LILO 220 83

8 220KV Hazira (GSEC) - Mota line D/C 220 111

9 220KV D/C Tharad - Thavar line D/C 220 97

10 220KV D/C Tharad - Deodar line D/C 220 78

11 220 KV Nakhatrana - Varsana D/C 220 213

12 220KV Otha - Sagapara line D/C 220 96

13 LILO of 220kV S/C Savarkundla-Vartej at BECL D/C 220 56

14 220 KV S/C Karamsad-Vartej LILO to Dhuvaran S/C 220 78


26


There is a need to have an appropriate government act to address the requirement ofTransmission corridor. It shall cover provisioning of corridors at planning stage itself ininfrastructure developments like roads, industrial complex, housing etc through citydevelopment planner, R&B of by NHAI for utility to lay transmission lines.

Forest clearance

In 11th FYP major transmission lines were delayed due to the late approval from forestauthorities. This not only delays in the project but also adds into overall cost, which in turnhas impact on tariff.

The impact of delay in the forest clearance particularly for distribution level voltage is severein tribal areas. It is a serious stumbling block to fulfill the commitment declared in the NationalElectricity Plan – Power to All. There should not be long formality of forest clearancerequirement or it should be cleared at the level of DFO.

Integration of Renewable Energy

Growth of Renewable Energy is in faster lane and today it has already reached to 12% of thetotal installed capacity of the Nation. There are various technical and commercial issueswhile integrating with the grid because of low PLF, variability and unpredictability. Whileseveral policies and regulatory frameworks are in place, there is a need of supplementingthese with several other steps as under:

o Providing Green Tech Fund for the intra-state transmission system

o Exclusive Grid Code for RES

Funding

In the Central Budget, a National Fund for the development of Electricity Sector was envisaged.It has not taken a shape but there is a dire need because central electricity funding institutionslike REC and PFC are charging higher rates. For the development of electricity sector, ahuge capital investment and funding are needed and since Utilities like us will look for cheaperfunding; National Fund must take a shape very soon.

Most of the State Utilities have large quantum of assets which are more than 25 years old.Such aged assets put challenge before the utility in terms of operational efficiency, repeatedmaintenance, safety and public inconvenience. There is a need of exclusive funding to takeup the R&M activity.

Smart Grid

Smart Grid comprises of digitized network that integrates information technology into theexisting power grid to optimize energy efficiency through a two-way exchange of electricityinformation between suppliers and consumers in real time. Not only does a smart grid enableenergy saving, reduce costs and increase reliability & transparency, it also improves energyefficiency and helps maintain security of supply.

GETCO has drawn a roadmap for the adoption of Smart Grid technologies in transmissionsystem which will fulfill the objective of modernizing the network as well as pave the way foreconomical and efficient operation in the long run.


27


Some of the technologies like Optical fibre & FOTE, optical CT, Compact Switchgear ConditionMonitoring and high Ampacity conductor have been adopted and groundwork in the area ofsynchrophasors and energy accounting system at SLDC has been undertaken.

IX. Awards & Recognition:

Our mission is “to achieve Global Standards in transmitting reliable and quality power” and toachieve this we believe in timely completion of the project with quality. We have been awardedfor excellence time and again by GoI and many reputed bodies in different functions of ourbusiness. Some of the major awards are as under:

• Govt. of India had awarded GETCO with Gold shield in the year 2007-08 & 2009-10 and Silver Shield in 2006-07 for early completion of projects.

• Best Transmission Utility – State - award by Enertia on 14.10.2011.

• 3rd Place in 9th National Award for excellence in cost management 2011- category:Public (Service sector – Large) by Government of India on 17.07.2012

• Award for Best Power Transmission Company under IPPAI Power Award- 2012"by IPPAI on 24.08.2012.

X. Statutory Compliances and Disclosures:

(a) Particulars of Employees

There was no employee earning in aggregate remuneration of ` 2,00,000/- per month or` 24,00,000/- per annum and hence the information in this regard may be treated as NIL.

(b) Conservation of Energy and Technology Absorption

As per the requirements of the disclosures under section 217(1) (e ) of the Companies Act,1956 read with Rule 2 of the Companies ( Disclosures of Particulars in the Report of Boardof Directors ) Rules, 1988 information relating to conservation of energy, technology absorptionis given in Annexure –I to this Report.

(c) Foreign Exchange Earnings & OutgoForeign Exchange Earnings (` in Crore)(i) Interest Nil(ii) Others Nil

__________Total Nil

============Foreign Exchange outgo (i) Capital Goods and Spare Parts Nil(ii) Professional and Consultancy Fees Nil(iii) Interest Nil(iv) Others Nil

___________Total Nil

============


28


(d) Safety, Pollution and Environment Control

GETCO is taking adequate safety measures at all its substations and those Divisions andTransmission circles which have recorded no accident during the year 2011-12 have beenawarded with the trophy and cash Award to be utilized for further safety improvementmeasures. GETCO has defined its own “Safety Policy” keeping in view the motto of ‘ZeroAccident Goal’. This Safety Policy takes care of GERC recommendations and regulationslaid down by CEA.

During last 3 years record of accident is as under;

Audit Committee

The Audit Committee in its 24th Meeting held on 24th September, 2012 has reviewed, consideredand recommended the Annual Accounts for the F.Y. 2010-11, which were then placed beforethe Board of Directors for their consideration and approval. Presently the Audit Committee ofthe Company comprises of following Directors:

Prof. Sebastian Morris Chairman

Shri Raj Gopal, IAS Director

Ms. S. Aparna, IAS Director

Shri P.H. Rana Director

Directors’ Responsibility Statement

As required under Section 217 (2AA) of the Companies Act, 1956, your Directors state that:

1. In the preparation of Annual Accounts, the applicable accounting standards had been followedalong with proper explanation relating to material departures, if any.

2. Accounting policies had been selected and consistently applied and made judgments andestimates that are reasonable and prudent so as to give a true and fair view of the state ofaffairs of the Company as at 31st March, 2012 and of the Profit and Loss Account of theCompany for that period.

3. Proper and sufficient care had been taken for the maintenance of adequate accountingrecords in accordance with the provision of the Companies Act, 1956 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities, and

4. The annual accounts had been prepared on a going concern basis.

Particulars 2009-10 2010-11 2011-12

Own Employee 11 10 9

Outsiders 9 7 6


29


ACKNOWLEDGMENT

Your directors place on record their sincere thanks for the guidance and co-operation extendedall through by the Ministry of Power, Government of Gujarat, our four Distribution Companies,Gujarat Electricity Regulatory Commission (GERC), concerned Revenue, Police, Tax Authorityetc, both at the State and Central level for their active support .The Management also extendsits sincere thanks to the suppliers and erection agencies for the constructive support.

Your Directors also place on record grateful thanks to the various Banks and FinancialInstitutions for their continued trust and confidence reposed by them by rendering timelyfinancial assistance for successful implementation of the Projects by the Company. The Boardfurther immensely thanks the Holding Company M/s. Gujarat Urja Vikas Nigam Ltd (GUVNL)for its co-operation and in giving valuable support and guidance in every field to the Company.

Last but not the least, the Board of Directors place on record the deep appreciation for thevaluable services rendered by all its employees.

For and on behalf of the Board

Date: 19-12-2012

Place: Gandhinagar Sd/- Chairman


30


Annexure ITo the Director’s Report

[A] Conservation of Energy:Gujarat Energy Transmission Corporation is committed to adopt and support State policies forRenewable Energy and Climate change initiative of GoG. The very purpose to contribute in itis for long term energy security and ecological sustainable growth. GETCO is actively pursuingclean energy programs through Energy Conservation.

• GETCO has installed 30 KW Roof Top SolarPower Plant at 220KV Jambuva, 220KV Gondal& 220KV Anjar sub-Station. We also closelymonitor its availability through on line databasefor optimum utilization.

• We are supporting various solar developers bycommissioning sub-station in time forevacuation of solar energy.

• Developing work culture for energyconservation awareness by various streetshows, rallies, and meeting with the employees& society.

• Providing centralized lightning energy saver at400KV S/s where energy consumption is more.

• Identified and attending energy loss if foundabnormal by each power connector which iscontributing for major loss of energy by wayadopting Infrared Thermography maintenance.

• Installation of Capacitor Bank to avoid reactiveenergy loss in long transmission network. Ason Sep’12, GETCO has installed 4705 MVAR.

• Close monitoring for optimization of outages toreduce line loss.

• Standardized illumination & electrical layouts forenergy efficient switching.

• Adopting LED’s for street lighting for sub-stationas well as for colonies.

• Close monitoring of energy bench mark forcontinuous improvement.

[B] Research & Development:• Research & Development is the fed for any organization to grow. GETCO’s continual growth

and commitment to achieve objectives is based on research and development.

• During last year GETCO has developed proto unit of hot line water washer for on linemaintenance of line insulators to avoid line outages. Based on experience GETCO has madechanges in units and finalized the tender to procure five more units.


31


Proto Desing Improved Design

• ON LINE CONDITION MONITORING:Off line condition monitoring is measured as one of the effective toolsfor asset management. However, still it is consuming manpower andequipment outages. Both resources are costly and even consumingvarious intangible expenses. In order to make it more effective, GETCOhas started on line condition monitoring. It is very important that themaintenance should be fast as GETCO has very large no. of assets.GETCO is restructuring its maintenance policy by adopting various fastsurvey equipments i.e. On Line Partial Discharge, InfraredThermography, and Leakage Current Monitor Measurement etc.

• ZERO ACCIDENT: Root Cause analysis of accident indicates major accident during indoorcircuit breaker operation i.e. Rack In – Rack Out. To focus the issue GETCO has providedcomplete pictorial guidelines for rack in & rack out of breakers. Besides, for zero accident arcduring breaker operation wepurchased arc retardant suit forsub-station operators.

• To meet the above goal and to

avoid use of non standards safety

articles, GETCO has developed

specification and invited tenders

for our various lines.


32


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDERSECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OFGUJARAT ENERGY TRANSMISSION CORPORATION LIMITED FOR THE YEARENDED 31 MARCH 2012.

The preparation of financial statements of Gujarat Energy Transmission Corporation Limited for the

year ended 31 March 2012 in accordance with the financial reporting framework prescribed under

the Companies Act, 1956 is the responsibility of the management of the Company. The Statutory

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

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

section 227 of the Companies Act, 1956 based on independent audit in accordance with the auditing

and assurance standards prescribed by their professional body the Institute of Chartered Accountants

of India. This is stated to have been done by them vide their Audit Report dated 27 September

2012.

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

under section 619(3) (b) of the Companies Act, 1956 of the financial statements of Gujarat Energy

Transmission Corporation Limited for the year ended 31 March 2012. This supplementary audit has

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

is limited primarily to inquiries of the Statutory Auditors and company personnel and a selective

examination of some of the accounting records. On the basis of my audit nothing significant has

come to my knowledge which would give rise to any comment upon or supplement to Statutory

Auditor’s report under section 619(4) of the Companies Act, 1956.

For and on behalf of theComptroller & Auditor General of India

Place: Ahmedabad (Meera Swarup)Date: 21-11-2012 Accountant General

(E & RSA), Gujarat


33


AUDITOR’S REPORT

To,The MembersOf Gujarat Energy Transmission Corporation Limited

1. We have audited the attached Balance Sheet of Gujarat Energy Transmission CorporationLimited (hereinafter referred to as ‘GETCO’ / ‘the Company’) as at 31st March, 2012, theProfit and Loss Statement and also the Cash Flow Statement for the year ended on thatdate, annexed thereto. Preparation of these financial statements is the responsibility of thecompany’s management. Our responsibility is to express an opinion on these financialstatements based on our audit.

2. We conducted our audit in accordance with auditing standards generally accepted in India.Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amount and disclosure in the financialstatements. An audit also includes assessing the accounting used and significant estimatemade by management, as well as evaluating the overall financial statements presentation.We believe that our audit provides a reasonable basis for our opinion. The company isgoverned by the provisions of the Electricity Act, 2003 read with the rules and the regulationsissued there under. The Section 616 (C) of the Companies Act, 1956, also provides thatspecial acts like Electricity Act, 2003 will apply to the extent the provisions of the CompaniesAct, 1956 are inconsistent with the provision of those acts. Accordingly, the financialstatements of GETCO for the year 2011-12 are compiled and reported.

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

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

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

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

c) The Balance sheet, Profit & Loss Statement and Cash Flow Statement dealt with bythe report are in agreement with the books of account of the Company.

d) According to the notification 02/05/2001 CL.V dated 23/03/2002 vide paragraph 8(ii)of the Department of Company Affairs the provisions of Section 274(1) (g) of theCompany’s Act, 1956 are not applicable to the Company.


34


e) In our opinion, the Balance Sheet, Profit & Loss Statement and Cash Flow Statementdealt with by this report are in compliance with the Accounting Standards referred toin Section 211 (3C) of the Companies Act, 1956.

f) We draw attention,

i. To Note no. 36, regarding various accounts being subject to reconciliationand adjustment.

ii. To Note no. 60, regarding revision in percentage of Govt. Grants, Subsidyand Consumer Contribution credited to Profit and Loss Statement.

g) Subject to paragraph 4 f) above, in our opinion and to the best of our information andaccording to the explanation given to us, the said accounts read together withaccounting policies and notes thereon, given the information required by theCompanies Act, 1956, in the manner so required, and give a true and fair view inconformity with accounting principles generally accepted in India:

i. In the case of Balance Sheet, of the state of affair of the company as at 31st

March, 2012.

ii. In the case of Profit & Loss Statement, of the profit for the period ended onthat date and

iii. In case of Cash Flow Statement, of the cash flow for the year ended on thatdate.

For Prakash Chandra Jain & Co.. Chartered Accountants

Firm Registration No. 002438C

(C.A. Dinesh C. Jain) Partner

Membership No. 041235

Place: VadodaraDate: 27/09/2012


35


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

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

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

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

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

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

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

7. The Company has neither granted nor taken any loans, secured or unsecured to/ fromcompanies, firms or other parties covered in the register maintained under section 301 ofthe companies Act, 1956. Accordingly clauses (iii) (b) to (iii) (d) of Paragraph 4 of the Orderare not applicable.

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

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

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

11. The Company has system of departmental pre payment audit. Further, the Company hasoutsourced the function of Internal Audit to a firm of Chartered Accountants. In our opinion,the said internal audit system is commensurate with the size and nature of the business ofthe Company.


36


12. The Central Government has prescribed maintenance of Cost records under section 209(1)(d) of the Companies Act 1956. The company has appointed a firm of Cost Accountantsfor preparation of Cost Records. We have broadly reviewed the cost records and are of theopinion that, prima facie, the prescribed records have been made and maintained.

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

14. (i) As per the Notification of The Gujarat Electricity Industry (Reorganization andRegulation) Act, 2003, the statutory liabilities, which may arise in regard to the dealingbefore the date of transfer, shall vest in the Company and therefore we are unableto comment on whether there are any unpaid dues on account of dispute in respectof sales tax, service tax, income tax, customs duty, wealth tax, excise duty andCess.

(ii) According to information and explanation given to us dues in respect of sales tax,service tax, income tax, customs duty, wealth tax excise duty and Cess, which havenot been deposited on account of any dispute during the year under audit are asfollows:

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

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

17. The Company has not granted loans or advances on the basis of security by way of pledgeof shares, debentures and other securities.

Nature of Statute Amount Dispute pending at forum

Income Tax Act, for Assessment ` 626.47 lacs Income Tax Appellate TribunalYear 2008/09 (Income Tax)

Income Tax Act, for Assessment ` 147.52 lacs Commissioner of IncomeYear 2008/09(Fringe Benefit Tax) Tax (Appeals)

Income Tax Act, for Assessment ` 196.50 lacs Commissioner of IncomeYear 2009/10 (Income Tax) Tax (Appeals)

Finance Act, for the periodOctober 2007 to March 2008 ` 35.40 lacs Commissioner of Appeals(Service Tax excluding Interest) - Central Excise


37


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

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

20. Funds required by the Company were provided by GUVNL from time to time and in absenceof information and proper records with Company in respect of the source from which thefunds were provided by GUVNL, we are unable to comment on the application of funds forthe purpose for which these loans were obtained. However during the year under audit,Term Loans were sanctioned /obtained directly by the Company and amount withdrawn wasapplied for the purpose for which it was obtained.

21. Funds required by the Company were provided by GUVNL from time to time and in absenceof information and proper records with the Company in respect of the source from which thefunds were provided by GUVNL, we are unable to comment on nature of funds raised onshort term basis and its utilization for long term investment.

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

23. The Company has not raised money by public issue during the year. Accordingly clause4(xx) of the order is not applicable.

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

For Prakash Chandra Jain & Co.. Chartered Accountants

Firm Registration No. 002438C

(C.A. Dinesh C. Jain) Partner

Membership No. 041235

Place: VadodaraDate: 27/09/2012


38


BALANCE SHEET AS AT 31st MARCH, 2012( `̀̀̀̀. in Lacs)

As per our report of even date attached For and on behalf of Board of DirectorsFor Prakash Chandra Jain & Co. Gujarat Energy Transmission Corporation LimitedChartered AccountantsFirm Reg. No. 002438C

(CA. Dinesh C. Jain) (D.J.PANDIAN, IAS) (S. K. NEGI)Partner Chairman Managing DirectorM. No. 041235

(B.C.SHAH) (Nishant Shrivastava)General Manager (F&A) Company Secretary

Place: Vadodara Place: GandhinagarDate: 27-09-2012 Date: 27-09-2012

Particulars AS AT 31st

MARCH, 2012AS AT 31st

MARCH, 2011NoteNo.

I. EQUITY AND LIABILITIES(1) SHAREHOLDERS FUNDS(a) SHARE CAPITAL 2 51138.34 49471.67(b) RESERVES AND SURPLUS 3 204358.09 171084.08(c) DEFERRED GOVT.GRANTS,SUBSIDIES, CONTRIBUTIONS 4 96653.59 81113.31

TOTAL(1) 352150.02 301669.06(2) SHARE APPLICATION MONEY PENDING ALLOTMENT (2) 8420.00 10000.00(3) NON-CURRENT LIABILITIES(a) LONG TERM BORROWINGS 5 415739.58 272106.23(b) DEFERRED TAX LIABILITIES (NET) 0.00 0.00(c) OTHER LONG-TERM LIABILITIES 6 2433.44 2947.65(d) LONG-TERM PROVISIONS 7 18461.87 16357.55

TOTAL(3) 436634.89 291411.43(4) CURRENT LIABILITIES(a) SHORT TERM BORROWINGS 8 3698.66 18230.98(b) TRADE PAYABLES 9 21333.69 40751.69(c) OTHER CURRENT LIABILITIES 10 200650.56 188564.41(d) SHORT TERM PROVISIONS 11 1234.13 1282.11

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

II. ASSETS(1) NON-CURRENT ASSETS(a) FIXED ASSETS (i) TANGIBLE ASSTS 12 715036.54 616481.45 (ii) INTANGIBLE ASSETS 12 0.00 0.00 (iii) CAPITAL WORK-IN-PROGRESS 12 233889.62 168187.95 (iv) INTANGIBLE ASSETS UNDER DEV. 12 0.00 0.00(b) NON-CURRENT INVESTMENTS 13 0.10 0.10(c) DEFERRED TAX ASSETS (NET) 0.00 0.00(d) LONG-TERM LOANS AND ADVANCES 14 3459.74 2370.04(e) OTHER NON-CURRENT ASSETS 15 2.90 3.02

TOTAL(1) 952388.90 787042.57(2) CURRENT ASSETS(a) CURRENT INVESTMENTS 16 0.00 0.00(b) INVENTORIES 17 19942.41 17856.77(c) TRADE RECEIVABLES 18 39473.82 39105.48(d) CASH AND BANK BALANCES 19 2261.23 1462.21(e) SHORT-TERM LOANS AND ADVANCES 20 3756.32 1624.90(f) OTHER CURRENT ASSETS 21 6299.27 4817.75

TOTAL(2) 71733.05 64867.11TOTAL(1+2) 1024121.95 851909.68Significant Accounting Policy and Notes on Accounts 1 to 62


39


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31ST MARCH 2012( `̀̀̀̀. in Lacs)



MARCH, 2011NoteNo.

I. REVENUE FROM OPERATIONS 22 176217.14 141753.41

II. OTHER INCOME 23 1533.19 1308.73

III. TOTAL REVENUE(I+II) 177750.33 143062.14

IV. EXPENSES:

EMPLOYEE BENEFITS EXPENSES 24 30665.32 30258.18

FINANCE COSTS 25 49409.08 31632.78

DEPRECIATION AND AMORTIZATION EXPENSE 26 45560.36 36922.60

OTHER EXPENSES 27 20981.30 17157.25

TOTAL EXPENSES 146616.06 115970.81

V. PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY

ITEMS AND TAX (III-IV) 31134.27 27091.33

VI. EXCEPTIONAL ITEMS 28 0.00 0.00

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

VIII. EXTRAORDINARY ITEMS

PRIOR PERIOD ITEMS 29 (130.05) 518.07

IX. PROFIT BEFORE TAX (VII-VIII) 31264.32 26573.26

X. TAX EXPENSE

CURRENT TAX 30 6323.64 5515.69

EARLIAR YEARS TAX 0.00 0.00

DEFERRED TAX 0.00 0.00

XI. PROFIT(LOSS) FOR THE PERIOD FROM CONTINUING

OPERATIONS (VII-VIII) 24940.68 21057.57

XII. PROFIT(LOSS) FROM DISCONTINUING OPERATIONS 0.00 0.00

XIII. TAX EXPENSE OF DISCONTINUING OPERATIONS 0.00 0.00

XIV. PROFIT(LOSS) FROM DISCONTINUING OPERATIONS

(AFTER TAX) (XII-XIII) 0.00 0.00

XV. PROFIT (LOSS) FOR THE PERIOD (XI+XIV) 24940.68 21057.57

XVI. EARNING PER EQUITY SHARE

BASIC & DILUTED 62 4.88 4.26

Significant Accounting Policy and Notes on Accounts 1 to 62






40


CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2012( `̀̀̀̀. in Lacs)







MARCH, 2011Cash Flow from Operating ActivitiesNet Profit Before Tax 31264.32 26573.22Adjustments For:Add / (Less) :Net Gain/Loss on disposal of Fixed Assets 524.39 360.15Provision for Leave Encashment 1829.59 1697.16Depreciation 45653.47 37020.96Interest and financing charges 49409.07 31632.81Dividend Received 0.00 0.00Operating Profit Before Working Capital Changes 128680.84 97284.30Adjustments for Changes in Working Capital(Increase) /Decrease In Inventories (2085.64) 3884.25(Increase) /Decrease In Sundry Debtors (368.34) (733.79)(Increase) /Decrease In Loan & advances (983.06) (348.17)Increase /(Decrease) In Trade Payables and other liabilities (26806.50) 12612.19(Increase) /Decrease In Other Current Assets (1727.95) (2763.23)CASH GENERATED FROM OPERATIONS 96709.35 109935.55Direct Tax Paid (7762.75) (1094.36)CASH FLOW BEFORE EXTRAORDINARY ITEMS 88946.60 108841.19Exceptional Items - -A. NET CASH FROM OPERATING ACTIVITIES 88946.60 108841.19CASH FLOW FROM INVESTING ACTIVITIESPurchase of Fixed Assets (203342.87) (156524.64)Sale of Fixed Assets 58609.92 21140.11(Increase)/Decrease in CWIP (56704.00) (44260.56)Purchase of Shares 0.00 (0.10)(Increase)/Decrease in Assets not in use 42.93 (25.31)Dividend Received 0.00 0.00B. NET CASH FROM INVESTING ACTIVITIES (201394.02) (179670.50)CASH FLOW FROM FINANCING ACTIVITIESShare application money 8420.00 10000.00( Repayment) / Proceeds From Borrowings 147694.56 64849.53Proceeds from Consumer Contribution/ Grants/subsidies 15540.27 33080.93Finance Cost (58408.40) (37574.98)C. NET CASH USED IN FINANCING ACTIVITIES 113246.43 70355.48NET INCREASE IN CASH & CASH EQUIVALENTS(A+B+C) 799.01 (473.83)CASH AND CASH EQUIVALENT (OPENING BALANCE) 1462.22 1936.05CASH AND CASH EQUIVALENT (CLOSING BALANCE) 2261.23 1462.22


41


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

1. SIGNIFICANT ACCOUNTING POLICIESINTRODUCTORY:

Gujarat Energy Transmission Corporation Ltd. (GETCO) was incorporated under Companies Act,1956 on 19.05.1999. The Certificate of Commencement of Business was received on 23.06.1999from the Registrar of Companies. GETCO, set up for transmission of electricity through variouscircles and divisions of erstwhile Gujarat Electricity Board (GEB), pursuant to the Gujarat ElectricityIndustry (Reorganization and Regulation) Act, 2003, was vested with the assets, properties, liabilities,Obligations, proceedings forming part of transmission undertaking specified in Schedule B of GujaratElectricity Industry Reorganization and Comprehensive Transfer Scheme, 2003. The transfer datewas 01.04.2005. The transfer of assets and liabilities made under the above transfer scheme wasmade by the Government of Gujarat vide notification no. GHU-2006-91-GUV-1106-590-K dated03.10.2006 (hereinafter referred to as “the notification”).

The consideration for the transfer of undertaking comprising of the values of assets and liabilitiesand the proceeding relating to transmission activities of erstwhile GEB as specified in the notificationwill be discharged by GETCO by issue of Equity Shares of Rs.10/- each fully paid for considerationother than cash to Gujarat Urja Vikas Nigam Ltd. (GUVNL), the successor company to erstwhileGEB as may be directed by Government of Gujarat (GoG). GETCO has already made reference toGUVNL to approach GoG for seeking direction regarding the issue of Equity Shares and to issue afresh Notification in this regard.

All the equity shares held by erstwhile GEB in the Company stood transferred by operation of law inthe name of GUVNL as per the Notification.

SIGNIFICANT ACCOUNTING POLICIESThe Company is engaged in the business of Transmission of Electricity and is governed bythe provisions of the Electricity Act, 2003 with effect from 10th June 2003. In case ofinconsistency between the provision of the Electricity Act, 2003 and the Companies Act,1956 the provisions of former are applied.

(1) Basis of Accounting:The financial statements have been prepared under the historical cost convention, inaccordance with generally acceptable accounting principles (GAAP) and applicableAccounting Standards issued under Section 211(3C) and Section 210A(1) of the CompaniesAct 1956 and relevant presentational requirement of the Companies Act, 1956.

(2) Revenue Recognition(i) Revenue

Transmission Income is accounted on the basis of tariff rates notified by GujaratElectricity Regulatory Commission (GERC) or as mutually determined among theGUVNL Companies as per Transmission Agreement (TA), whichever is less.

The company has recognized the revenue from the following on accrual basis:– Wheeling charges from captive power generators– Maintenance Charges– Reactive energy charges– Operation and Maintenance charges from users of dedicated lines

– Parallel Operation Charges from Captive Power Producers under bi-lateralagreements.


42


(ii) The company has recognized revenue from sale of scrap and income from consultancyon actual realization and from contract service on finalization of bill.

(iii) Other Income

Other income is recognized on accrual basis except when ultimate realization ofsuch income is uncertain.

(iv) Insurance Claims

Claims lodged with the Insurance Company in respect of risks covered are accountedfor as and when the claim is received.

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

(3) (a) Fixed Assets(i) The company has received the Gross Fixed assets as well as Accumulated

Depreciation vide the Notification.

(ii) Fixed Assets are stated at cost of acquisition including freight, insurance, duties,taxes and other incidental expenses incurred to bring the asset in present locationand condition and other direct costs are capitalized until the assets are commerciallyput to use and include financing costs relating to any borrowing attributable toacquisition.

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

(iv) The cost of land includes provisional deposits, payments / liabilities towardscompensation, rehabilitation and other expenses. Deposit / advances / expenditureincurred in respect of land for which possession is not taken is shown as Advance forFixed Assets.

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

(b) Capital work - in - progress (CWIP)(i) Capital work - inprogress includes the cost incurred on fixed assets that are not yet

ready for the intended use. All Expenditures of construction division are allocated tothe projects on pro rata basis to the accretion made to respective project. Howevercommon expenditure of Corporate Office are allocated to Capital work - in - progressat flat rate determined on the basis of amount of allocable expenditure incurredduring the year.

(ii) Claims for price variation / exchange rate variation in case of contracts are accountedfor on acceptance basis.

(4) Depreciation and Amortization(i) Depreciation on Fixed Assets excluding Fixed Assets of State Load Dispatch Center

(SLDC) has been provided on Straight Line Basis as per the rates prescribed byCentral Electricity Regulatory Commission (CERC) as notified. Depreciation on FixedAssets of SLDC has been provided on Straight Line Basis. In respect of thedepreciable assets for which no rate has been specified by the CERC and assets ofState Load Dispatch Centre (SLDC), rate as specified in Schedule XIV to theCompanies Act, 1956 is adopted. Depreciation on fixed assets has been providedfrom the date of assets put to use/up to the date of assets withdrawn from use.


43


(ii) Assets having original cost upto ` 5000/- have been fully charged to revenue in theyear in which the assets are purchased.

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

(iv) Lease Hold land including development cost is depreciated over the tenure of thelease.

(v) In respect of “Capital Expenditure resulting in an asset not belonging to the Company”are depreciated as prescribed by the “Electricity (Supply) (Annual Accounts) Rules,1985”.

(5) Intangible AssetsThe company has policy to write off such expenditure in the year in which it is incurred.

(6) InventoriesThe Inventories of the Company have been valued on the following basis

Consumable Stores and Spares : Cost as per Weighted Average Method

Construction Stores : Cost as per Weighted Average Method

Steel Scrap and Conductor scrap : Book value or Net Realizable Value(NRV) whichever is lower

Mandatory Spares of consumable nature : Cost as per Weighted Average Method

Surplus Material : Cost as per Weighted Average Method

(7) Borrowing CostBorrowing costs that are attributable to the acquisition, construction or modernization ofqualifying assets are capitalized as part of such assets. A qualifying asset is an asset thatnecessarily takes a substantial period of time to get ready for its intended use. Such borrowingcosts are apportioned on the average balance of expenditure on CWIP for the year. All otherborrowing costs are charged to revenue.

(8) Foreign Exchange TransactionsForeign currency transactions during the year are recorded at rates of exchange prevailingon the date of transactions. Foreign currency assets and liabilities are translated into Rupeesat the rate of exchange prevailing on the date of the Balance Sheet. All exchange differencesare dealt with in the statement of profit and loss, except those relating to the acquisition offixed assets, which are adjusted in the cost of the assets.

(9) Employee Benefits :a. Retirement Benefits(i) Provident Fund

Contribution to Provident Fund is made to Government/Recognized provident fundas required by the statues/rules.

(ii) GratuityLiability towards gratuity payable to employees is covered by Gratuity Trust Fundmanaged by GUVNL (Holding Company). The contribution payable as per actuarialvaluation is charged to Profit and Loss Statement of the company.

(iii) Leave EncashmentThe benefit of encashment of the leave is given to the employees of the companyduring their service and on retirement. The company provides the liability for leaveencashment benefit on the basis of the unutilized leave balances at end of the year.


44


(iv) Leave Travel ConcessionExpenditure on Leave Travel Concession to retiring employees is recognized on thebasis of actual reimbursement.

(10) Taxes on Income(i) The provision for taxation is ascertained on the basis of assessable profits computed

in accordance with the provisions of the Income-tax Act, 1961.(ii) Deferred tax is recognized, subject to the consideration of prudence, on timing

differences, being the differences between taxable incomes and accounting incomethat originate in one period and are capable of reversal in one or more subsequentperiods. The deferred tax asset is recognized and carried forward only to the extentthat there is a reasonable certainty except for carried forward losses and unabsorbeddepreciation which is recognized on virtual certainty that the asset will be realized infuture.

(11) Provisions and Contingent Liabilities:The Company recognizes a provision when there is a present obligation as a result of pastevents that probably requires an outflow of resources and a reliable estimate can be madeof the amount of the obligation. A disclosure for a contingent liability is made when there isa possible obligation or a present obligation that may, but probably will not, require an outflowof resources. Where there is a possible obligation or a present obligation that the likelihoodof outflow of resources is remote, no provision or disclosure is made.

(12) Government Grant, Subsidy and Consumer Contribution:Contribution, Grants and subsidies towards cost of capital assets are not reduced from costof assets. These are treated as “Reserves and Surplus”. All receipts of consumer’scontributions, grants and subsidies received from 1st April 2005 are treated as deferredrevenue and in absence of identification of grants with assets, based on average useful lifeof assets, proportionate percentage of the year end balance is transferred to Profit and LossStatement.Grant in excess of depreciation over the nominal value of the assets at the end of the usefullife of assets is not transferred to capital reserve for the reasons stated above.

(13) Prior Period Adjustments :All identifiable / decided items of income and expenditure pertaining to prior period whichwere not provided /accounted in earlier years are accounted through “Prior Period AdjustmentsAccount”.

(14) Impairment of Assets :The company has adopted the policy to assess at each Balance Sheet date whether there isany indication that an asset may be impaired. If any such indication exists, the Companyestimates the recoverable amount of the asset. If such recoverable amount of the asset orthe recoverable amount of the cash generating unit to which the asset belongs is less thanits carrying amount, the carrying amount is reduced to its recoverable amount. The reductionis treated as an impairment loss and is recognized in the Profit & Loss Statement. If at theBalance Sheet date, there is an indication that if a previously assessed impairment loss nolonger exists, the recoverable amount is reassessed and the asset is reflected at therecoverable amount.

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


45


NOTES ON FINANCIAL STATEMENT FOR THE YEAR ENDED 31st MARCH 2012

Terms/rights attached to equity sharesThe company has only one class of equity shares having a par value of ` 10 per share. Each holderof equity shares is entitled to one vote per share. The company in AGM may declare a dividend tobe paid to the members according to their respective rights and interest in profits and may fix thetime for payment but no dividend shall exceed the amount recommended by the Board.

Details of Shareholders holding more than 5% shares & Shares held by holding and/orassociates of its holding company

ParticularsAS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011

Gujarat Urja Vikas Nigam Ltd 498883340 482216674(Holding Company & its nominees) 97.56% 97.47%

Government of Gujarat 12500000 125000002.44% 2.53%

Number of Shares & held Number of Shares & held

The reconciliation of the number of shares outstanding is set out below( `̀̀̀̀. in Lacs)



MARCH, 2011

Equity Shares at the beginning of the year 494716674 472916674

Add : Equity Shares issued during the Year 16666666 21800000

Equity Shares at the end of the Year 511383340 494716674

The Government of Gujarat vide notification number GHU-(203)-GUV-1106-590K dated 12thDecember 2008 has partially modified the earlier notification number GHI-2006-91-GUV-1106-590-K dated 3rd October 2006 has bifurcated earlier notified equity share capital into equity sharecapital of ` 38,926.66 Lakhs (i.e. 389266604 fully paid equity shares of ` 10 each and sharepremium of ` 1,16,779.98 Lakhs effective from 1st April 2008 in respect of transferred undertakingof erstwhile Gujarat Electricity Board (GEB) as on 1st April 2005.

2. SHARE CAPITAL ( `̀̀̀̀. in Lacs)



MARCH, 2011

(1) Authorised:200,00,00,000 Equity Shares each of ` 10 each (previous year200,00,00,000 Equity Shares each of ` 10 each) 200000.00 200000.00

TOTAL 200000.00 200000.00(2) Issued, Subscribed & Paid up

Equity Shares at the Beginning of the Accounting Period.494716674 (P.Y.472916674) Equity Shares of `10/- Each 49471.67 47291.67Addition During the Year16666666 (P.Y.21800000) Equity Shares of ` 10/- Each 1666.67 2180.00Shares at the end of the Accounting Period.511383340 (P.Y.494716674) Equity Shares of ` 10/- Each 51138.34 49471.67


46


( `̀̀̀̀. in Lacs)



MARCH, 2011

Capital Grant for Capital Support

At the beginning of the Accounting Period 6427.94 6427.94

Additions during the Year 0.00 0.00

At the end of the Accounting Period 6427.94 6427.94

Surplus

At the beginning of the Accounting Period 41336.16 20278.62



Securities Premium Account

At the beginning of the Accounting Period. 123319.98 116779.98



GRAND TOTAL 204358.09 171084.08

3. RESERVE & SURPLUS :

( `̀̀̀̀. in Lacs)



MARCH, 2011

Subsidies towards Cost of Capital Assets 2935.05 2650.44

Grants towards Cost of Capital Assets 45220.08 35240.88

Consumer Contribution towards Capital Assets 48498.46 43221.99

GRAND TOTAL 96653.59 81113.31

4. DEFERRED GOVT. GRANTS, SUBSIDIES, CONTRIBUTIONS

( `̀̀̀̀. in Lacs)



MARCH, 2011

Share Application Money 8420.00 10000.00

8420.00 10000.00

SHARE APPLICATION MONEY PENDING ALLOTMENT

Out of Share application money of ` 10000 Lakhs of Year 2010-11, 16666666 Equity Shares of` 10/- each issued at a premium of ̀ 50 each in Year 2011-12 (Total Premium Amount ̀ 833333300).During the Year 2011-12, Share application money received for ` 8420 Lakhs. Terms & Condition,Number of shares proposed to be issued, amount of premium, the period of allotment, interest ifany on refund amount is under consideration. (Refer Note No :61) The company has sufficientauthorized share capital to cover the paid up share capital amount on allotment of shares out ofshare application money.


47


NON-CURRENT LIABILITIES

5. LONG TERM BORROWINGS ( `̀̀̀̀. in Lacs)



MARCH, 2011

SECURED TERM LOANS

FROM BANKS

Loans From Commercial Banks 266149.83 180603.53

Loans for working Capital 0.00 1958.60

Bill Discounting under DPG 917.84 1874.68

FROM OTHER PARTIES

Bill Discounting under DPG 4998.33 8259.90

Loan from PFC 7295.74 7036.75

Loans from REC. 9131.11 10272.50

TOTAL 288492.85 210005.96

UNSECURED LONG TERM BORROWINGS:

(a) Public Bonds 17650.90 23262.59

(b) Term Loans From Other Parties

Loan from Power Finance Corporation 618.92 875.87

Loan from Others 92166.67 30587.02

ADB Prog. & Proj. Loan 6810.24 7374.79

Loans for working Capital 10000.00 0.00

TOTAL 127246.73 62100.27

GRAND TOTAL 415739.58 272106.23

Note :1. Loan from Commercial Banks is secured against hypothecation / mortgage charge on

upcoming assets of various sub-stations along with associated lines for which the term loan was

sanctioned. Further GUVNL has given guarantee for loans from Commercial Banks (SBS). Details

of Securities given against each loan are as tabulated below :


48


Rate of BalanceName of Bank Interest as outstanding Name of Projects Covered

on 31.3.2012 as on 31.3.2012(In `̀̀̀̀ Lakhs)

1.) Syndicate Bank 12.35% 27750.00 Term Loan is secured by hypothecation / mortgagecharge on various Transmission Lines covered underPalanpur Circle.

2.) State Bank of India(SBS) 12.00% 2678.71 Term Loan is secured by hypothecation / mortgagecharge on upcoming assets of Substation along withassociated transmission lines covered under variousCircles: Junagadh Circle, Nadiad Circle, PalanpurCircle, Jamnagar Circle, Amreli Circle, SurendranagarCircle, Anjar Circle, Gondal Circle, Jambuva Circle.

3.) State Bank of India(SBS) 12.00% 1999.20 Term Loan is secured by hypothecation / mortgagecharge on upcoming assets of Substation along withassociated transmission lines covered under variousCircles: Junagadh Circle, Nadiad Circle, PalanpurCircle, Gondal Circle, Amreli Circle, Mehsana Circle.

4.) Karur Vysya Bank – Ref to GUVNL 12.10% 8250.00 Term Loan is secured by hypothecation / mortgagecharge assets of Substation along with associatedtransmission lines covered under Navsari Circle.

5.) Kalupur Commercial Bank 10.75% 2708.33 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Mehsana Circle, Palanpur Circle, Gondal Circle, AnjarCircle, Jambuva Circle.

6.) State Bank of India TL I 11.50% 12503.00 Term Loan is secured by hypothecation / mortgagecharge on upcoming assets of Substation along withassociated transmission lines covered under variousCircles: Jambuva Circle, Nadiad Circle, MehsanaCircle, Palanpur Circle, Gondal Circle, Anjar Circle,Amreli Circle, Surendranagar Circle.

7.) United Bank of India 11.85% 19393.31 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Anjar, Rajkot & Nadiad Circle

8.) Bank of Baroda TL-I 10.75% 17500.00 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Navsari Circle, Jambuva Circle, Nadiad Circle,Mehsana Circle, Palanpur Circle, Gondal Circle,Junagadh Circle, Amreli Circle, Anjar Circle, S’nagarCircle.

9.) Oriental Bank of Commerce TL- I 10.00% 18800.00 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Navsari Circle, Amreli Circle, Palanpur Circle, NadiadCircle, Anjar Circle, Rajkot Circle.

10.) Bank Of India TL-I 12.50% 17743.58 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Nadiad Circle, Junagadh Circle, S’nagar Circle,Palanpur Circle, Gondal Circle, Anjar Circle, AmreliCircle ,Navsari Circle, Mehsana Circle, JambuvaCircle.


49


11.) Bank Of India TL-II 12.25% 13755.45 Term Loan is secured by hypothecation / mortgagecharge on upcoming assets of Substation along withassociated transmission lines covered under variousCircles: Gondal Circle, Nadiad Circle, Bharuch Circle,Palanpur Circle.

12.) Bank of Maharastra 11.70% 8171.95 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Navsari Circle, Jambuva Circle, Mehsana Circle,Gondal Circle, Bharuch Circle, Surendranagar Circle.

13.) Corporation Bank - TL II 12.15% 14420.72 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Nadiad Circle, Bharuch Circle, Navsari Circle,Gondal Circle, Junagadh Circle, Jamnagar Circle,Amreli Circle, S’nagar Circle, Mehsana Circle, AnjarCircle.

14.) Dena Bank 11.40% 7155.83 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Amreli Circle, Anjar Circle, Bharuch Circle, GondalCircle, Himatnagar Circle, Jambuva Circle, JamnagarCircle, Junagadh Circle, Nadiad Circle, NavsariCircle.

15.) Indian Bank 12.00% 4904.39 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Gondal Circle, Junagadh Circle, S’nagar Circle,Mehsana Circle, Amreli Circle, Palanpur Circle,Navsari Circle.

16.) Oriental Bank of Commerce TL- II 12.00% 19886.61 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under Palanpur Circle.

17.) State bank of Bikaner & Jaipur 12.00% 7762.23 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Amreli Circle, Anjar Circle, Bharuch Circle, GondalCircle, Junagadh Circle, Jamnagar Circle, MehsanaCircle, Nadiad Circle, Navsari Circle, Palanpur Circle,S’nagar Circle.

18.) State Bank of India TL- II 12.00% 20680.87 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Amreli Circle, Anjar Circle, Palanpur Circle.

19.) Union Bank of India TL-II 11.15% 7144.81 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Gondal , Junagadh & Jamnagar Circle of existingassets and for upcoming assts covered under AnjarCircle, Gondal Circle, Jambuva Circle, JunagadhCircle, Mehsana Circle, Nadiad Circle, NavsariCircle, S’nagar Circle.


50


20.) Union Bank of India TL-I 11.90% 11445.03 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Palanpur, Amreli , Gondal & Jamnagar Circle.

21.) United Bank of India- Refinance to GUVNL 11.85% 16500.00 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under Navsari Circle.

22.) Vijaya Bank 11.40% 10345.78 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Amreli Circle, Anjar Circle, Gondal Circle, MehsanaCircle, Nadiad Circle, Navsari Circle, Jambuva Circle,Junagadh Circle, Palanpur Circle, SurendranagarCircle, Bharuch Circle.

23.) Corporation Bank TL- I 12.50% 8924.02 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Anjar & Junagadh Circle.

24.) Bank of Baroda TL-II 11.25% 3000.00 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Amreli Circle, Bharuch Circle, Gondal Circle,Himatnagar Circle, Jambuva Circle, Nadiad Circle.

25.) Bank of India TL III 11.25% 3000.00 Term Loan is secured by hypothecation / mortgagecharge on assets of Substation along with associatedtransmission lines covered under various Circles:Gondal Circle, Jambuva Circle, Jamnagar Circle,Junagadh Circle, Mehsana Circle, Nadiad Circle,Navsari Circle, Surendranagar Circle.

26.) Indian Overseas Bank 8.50% 553.85 Secured against 1st hypothecation charge on theassets of Dhrangadhra and Surendranagar O&MDivision of PGVCL.

27.) Indian Overseas Bank 9.50% 482.49 Secured against 1st hypothecation charge on theassets of Vijapur, Mehsana and Chhatral TRDivisions.

28.) Union Bank of India 10.75% 263.20 Secured against 1st hypothecation charge on theassets of Soja, Dhansura and Chhatral TR Divisions.

29.) Allahabad Bank 9.00% 789.60 Secured against 1st hypothecation charge on theassets of Sabarmati, Gandhinagar and Bavla O&MDivision of UGVCL.

30.) Canara Bank 10.75% 1833.84 Secured against extension hypothecation charge onthe assets of Godhra and Baroda O&M Division ofMGVCL.

31.) Dena Bank 10.75% 323.71 Secured against 1st hypothecation charge on theassets of Amreli, Dhasa and VartejTR Divisions.

32.) Interest Accrued and Due - 1926.99 Interest is secured against various commercial loansmentioned above.


51


2. Secured Loan from PFC is secured against hypothecation / mortgage charge on upcoming

assets of various sub-stations along with associated lines for which the term loan was

sanctioned. Details of Security given is as below :

3. Loan from REC is secured against hypothecation charge on upcoming assets of various sub-

stations along with associated lines for which the term loan was sanctioned. Details of Security

given is as below :

4. Loans from Working Capital includes 9.25% unsecured loan from GSFS and has outstandingbalance of ` 29000 Lakhs as on 31-Mar-2012. It also includes Cash Credit facility Securedagainst 1st hypothecation charge in favour of UCO bank Consortium on the stocks and bookdebts ranking paripasu and has outstanding balance of ` 3698.66 Lakhs.

5. Public Bonds guaranteed by Government of Gujarat are considered as unsecured Loan.

6. Unsecured PFC Loan is guaranteed by Government of Gujarat amounting to ` 908.54 Lakhsas on 31st March 2012. Interest % is ranging from 9% to 12.50%.

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

8. Bill Discounting facility are secured under the Deferred Payment Guarantees issued byConsortium member banks. Interest % is ranging from 8.50% to 11.80%.


on 31.3.2012 as on 31.3.2012(In ` ` ` ` ` Lakhs)

1.) REC 11.49% 10272.5 Term Loan is secured by hypothecation charge on(Wt. Avg Rate) assets of Substation along with associated

transmission lines covered under Gondal, Mehsanaand Bharuch Circle.


on 31.3.2012 as on 31.3.2012(In `̀̀̀̀ Lakhs)

1.) PFC 11.6% 8115.66 Term Loan is secured by hypothecation / (Wt.Avg Rate) mortgage charge on assets of Substation (220KV

Mangrol—Mobha Line, 220 KV Taper S/S, BotadS/S, 220 KV Kukma S/S and assets of BharuchTransmission circle along with associatedtransmission lines.


52


ParticularsMaturity Profile

Loans From Commercial Banks 26273.59 39523.59 48323.39 152029.26

Bill Discounting under DPG 4187.27 1704.72 24.19 0.00

Loan from PFC 944.31 982.56 982.56 4386.31

Loans from REC. 1141.39 1141.39 1141.39 5706.94

2-3years

3-4years

Beyond4 years

(`̀̀̀̀. in Lacs)

1-2years

Rate of InterstMaturity Profile

Loan from Power Finance Corporation 174.88 136.63 136.63 170.79

Loan from Others 51333.33 36833.34 4000.00 0.00

ADB Prog. & Proj. Loan 570.05 570.05 570.05 5100.09

Loans for working Capital 10000.00 0.00 0.00 0.00

2-3years

3-4years

Beyond4 years

(`̀̀̀̀. in Lacs)

1-2years

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

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

ParticularsMaturity Profile

11.75% Series-Vl Option- III 432.52 576.69 0.00 0.00

7.50% Series-Vl Option- III 799.28 1065.71 0.00 0.00

11.25% Series-VII option-II 28.13 0.00 0.00 0.00

11.50% Series-VII option-III 945.46 0.00 0.00 0.00

8.95% Series-Vlll 0.00 2584.72 2584.72 3446.30

8% Series-lX 0.00 410.83 410.83 547.78

8% Series-X 0.00 1145.37 1145.37 1527.16

2-3years

3-4years

Beyond4 years

(`̀̀̀̀. in Lacs)

1-2years

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


53


9. TRADE PAYABLES (`̀̀̀̀. in Lacs)



MARCH, 2011

Liability for Capital Supplies / Works. 20655.65 40294.25Liability for O & M Supplies / Works. 678.04 457.44TOTAL 21333.69 40751.69

7. LONG-TERM PROVISIONS: (`̀̀̀̀. in Lacs)



MARCH, 2011

Provision for Leave Encashment 15177.48 13328.28

Welfare Scheme 3284.39 3029.27

TOTAL 18461.87 16357.55

CURRENT LIABILITIES8. SHORT-TERM BORROWINGS: (`̀̀̀̀. in Lacs)



MARCH, 2011

SECURED LOANS FROM BANKSLoans for Working capital 3698.66 18230.98TOTAL 3698.66 18230.98

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

6. OTHER LONG-TERM LIABILITIES: (`̀̀̀̀. in Lacs)



MARCH, 2011

Deposits & Retentions from Supp. & Contractors. 154.44 155.18Retention Money from Suppliers / Contractor 72.88 536.02Deposits for Electrification & Service Conn. etc. 2206.12 2256.45TOTAL 2433.44 2947.65


54


10. OTHER CURRENT LIABILITIES (`̀̀̀̀. in Lacs)



MARCH, 2011

CURRENT MATURITIES OF LONG TERM DEBTSSECURED LOANSFROM BANKS

Loans From Commercial Banks 26447.21 23308.99Bill Discounting under DPG 956.30 1495.72

FROM OTHER PARTIESLoan from PFC 819.93 710.06Loans from REC 1141.39 1141.39Bill Discounting under DPG 3261.56 3269.43

UNSECURED LOANS(a) Public Bonds 3268.66 2584.00(b) Loan from Other Parties

Loan from PFC 289.62 322.30Loans for Working capital 19000.00 0.00Loan from Others 47087.84 50853.82ADB Prog. & Proj. Loan 564.72 558.00

Interest Accrued But Not Due on Borrowings 4270.11 3530.84Current Year’s Taxes Payable (Net of Advance Tax) 807.55 218.97Other Inter-company payables to companies under the same management

i GUVNL 12565.55 36418.01ii Gujarat Energy Training & Research Institute 14.51 98.33

Other Liabilities 17411.23 12693.26Liability for expenses. 6182.17 6253.93Deposits for Electrification & Service Conn. etc. 28211.71 26016.29E.M.D From Suppliers / Contractors 3010.51 3350.46Deposits & Retentions from Supp. & Contractors. 2587.36 2318.53Retention Money from Suppliers / Contractor 21807.15 12647.72Other Deposits 0.00 7.66Deposits from Others 945.48 766.70TOTAL 200650.56 188564.41

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

11. SHORT-TERM PROVISIONS (`̀̀̀̀. in Lacs)



MARCH, 2011

(a) PROVISIONS FOR EMPLOYEE BENEFITSStaff related liabilities and Provisions 47.77 60.99Welfare Schemes 486.56 501.60Provision for Leave Encashment 699.26 718.86

(b) OTHERSProvision for Wealth Tax (Net of Advance Tax) 0.54 0.66

TOTAL 1234.13 1282.11


55


12.

FIX

ED

AS

SE

TS

( `̀̀̀̀.

in L

acs)

Par

ticu

lars

Bal

ance

as a

t31

-03-

2011

Ad

dit

ion

sA

du

just

men

t/D

edu

ctio

ns

Bal

ance

as a

t31

-03-

2012

GR

OS

S B

LO

CK

Bal

ance

as a

t31

-03-

2011

Ad

dit

ion

sA

du

just

men

t/D

edu

ctio

ns

Bal

ance

as a

t31

-03-

2012

PR

OV

ISIO

N F

OR

DE

PR

EC

IAT

ION

Bal

ance

as a

t31

-03-

2012

NE

T B

LO

CK

Bal

ance

as a

t31

-03-

2011

TAN

GIB

LE

AS

SE

TS

OW

NE

D A

SS

ET

S1

Land

& L

and

right

s12

904.

9667

86.3

222

40.6

517

450.

630.

000.

000.

000.

0017

450.

6312

904.

962

Bui

ldin

gs39

610.

2711

376.

3145

78.7

246

407.

8657

13.3

615

51.3

8-3

1.49

7296

.23

3911

1.63

3389

6.91

3H

ydra

ulic

wor

ks19

23.0

261

7.17

255.

7122

84.4

858

6.71

106.

68-0

.74

694.

1315

90.3

513

36.3

14

Oth

er C

ivil

wor

ks25

451.

7786

24.1

722

21.2

431

854.

7032

25.6

196

9.81

-4.3

241

99.7

427

654.

9522

226.

165

Pla

nt &

Mac

hine

ry41

7143

.04

9911

8.78

2714

1.38

4891

20.4

511

3313

.48

2392

1.51

1358

.24

1358

76.7

535

3243

.70

3038

29.5

66

Line

s &

Cab

leN

et W

orks

3087

51.1

275

166.

4024

159.

7535

9757

.78

7010

4.66

1844

4.48

84

.68

8846

4.46

2712

93.3

123

8646

.46

7V

ehic

les

572.

1222

.97

31.6

756

3.42

414.

6932

.66

21.4

542

5.90

137.

5115

7.42

8F

urni

ture

& F

ixtu

res

2273

.06

219.

70

(19

.12)

2511

.87

795.

2517

1.43

-1.5

496

8.22

1543

.65

1477

.81

9O

ffice

Equ

ipm

ents

2367

.86

110.

44-4

9.27

2527

.57

902.

1433

7.64

0.13

1239

.65

1287

.92

1465

.71

10C

ap.e

xp.r

esul

ting

inas

sets

not

bel

ongi

ngto

the

Com

pany

208.

820.

000.

0020

8.82

87.9

311

.03

0.00

98.9

610

9.86

120.

8911

Su

b-T

ota

l81

1206

.04

2020

42.2

660

560.

7395

2687

.58

1951

43.8

445

546.

6214

26.4

123

9264

.04

7134

23.5

361

6062

.20

12L

EA

SE

D A

SS

ET

S13

Lea

seh

old

Lan

d44

8.80

1271

.09

0.00

1719

.89

29.5

577

.33

0.00

106.

8816

13.0

141

9.25

14S

ub

-To

tal

448.

8012

71.0

90.

0017

19.8

929

.55

77.3

30.

0010

6.88

1613

.01

419.

2515

Tota

l - A

8116

54.8

420

3313

.35

6056

0.73

9544

07.4

719

5173

.38

4562

3.95

1426

.41

2393

70.9

271

5036

.54

6164

81.4

516

Inta

ng

ible

Ass

ets

0.00

29.5

10.

0029

.51

0.00

29.5

10.

0029

.51

0.00

0.00

17To

tal -

B0.

0029

.51

0.00

29.5

10.

0029

.51

0.00

29.5

10.

000.

0018

Tota

l (A

+B)

8116

54.8

420

3342

.86

6056

0.73

9544

36.9

819

5173

.38

4565

3.47

1426

.41

2394

00.4

471

5036

.54

6164

81.4

519

As

per

Bal

ance

Sh

eet

as a

t 31s

t Mar

ch,2

011

6769

16.3

815

6524

.64

2178

6.18

8116

54.8

415

8438

.33

3702

0.96

285.

9119

5173

.38

6164

81.4

551

8478

.04

20C

apit

al W

ork

inP

rog

ress

2338

89.6

216

8187

.95

21In

tan

gib

le A

sset

su

nd

er D

evel

op

men

t0.

000.

00

Not

e: A

lso

refe

r Not

e N

o.35

Sr.

No.


56


13. NON CURRENT INVESTMENT: (`̀̀̀̀. in Lacs)



MARCH, 2011

Investment in Shares (At Cost)

Un Quoted, Non Trade

400 (P.Y. 400) Equity Shares of ` 25 each, in Kalupur

Commercial Co-Operative Bank LTD., fully paid up 0.10 0.10

TOTAL 0.10 0.10

14. LONG TERM LOANS AND ADVANCES: (`̀̀̀̀. in Lacs)



MARCH, 2011

(Unsecured and Considered Good)

Advances to Suppliers / Contractors (Capital). 25.70 24.03

Loans & Advances to staff. 2083.94 1199.51

Amt. recoverable from emp./ ex-employees. 70.87 59.89

Other Income accrued & due. 0.00 0.24

Income accrued but not due. 1279.23 1086.37

TOTAL 3459.74 2370.04

15. OTHER NON-CURRENT ASSETS : (`̀̀̀̀. in Lacs)



MARCH, 2011

Deposits with Telephone Authorities 2.90 3.02

TOTAL 2.90 3.02

CURRENT ASSETS

16. CURRENT INVESTMENTS : (`̀̀̀̀. in Lacs)



MARCH, 2011

– – –

TOTAL – –


57


17. INVENTORIES: (`̀̀̀̀. in Lacs)



MARCH, 2011

STORES,SPARES & LOOSE TOOLS;

Stock of materials at Construction Stores 13694.75 12635.09

Stock of materials at Other Stores. 4862.48 4387.22

Materials pending Inspection. 599.18 142.07

Materials in Transit. 169.75 67.78

Other Materials Accounts. 616.25 624.61

TOTAL 19942.41 17856.77

18. TRADE RECEIVABLES: (`̀̀̀̀. in Lacs)



MARCH, 2011

(Unsecured and Considered Good)

Trade Receivables for Trans. of Power. 37820.26 37622.04

Trade Receivables for Inter State Trans. of Power. 0.00 65.84

Trade Receivables for Misc. Receipts from Cons. 797.37 717.00

Receivable - Other Account. 856.19 700.60

TOTAL 39473.82 39105.48

Out of above:

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

they are due 36694.94 31538.53

(2) Other Debts 2778.88 7566.95

TOTAL 39473.82 39105.48

19. CASH & BANK BALANCES : (`̀̀̀̀. in Lacs)



MARCH, 2011

(a) Cash & Cash Equivalent :

Cash & Balance with Banks

Balance with Scheduled Banks. 1766.71 1368.61

Cheques on Hand 11.92 0.02

Remittance in Transit. 476.59 87.80

Cash on Hand 3.30 3.31

Postage Stamp & Stamped Agreements on Hand 1.46 1.22

(b) Other Bank Balances :

Fixed Deposits with Banks 1.25 1.25

TOTAL 2261.23 1462.21

Also refer Significant Accounting Policy No 6 for Inventory Policy.


58


20. SHORT TERM LOANS & ADVANCES: (`̀̀̀̀. in Lacs)



MARCH, 2011

(Unsecured and considered Good)

Advances recoverable in Cash or in kind for the value to be received.

(1) Advance to Parties

Advances for O&M Supplies / Works. 195.89 213.86

Loans & Advances - Others. 46.85 12.42

(2) Loans & Advances to Staff 683.36 601.18

(3) Income Tax

Advance Income Tax (Net of Provisions) 2646.59 761.89

Advance Fringe Benefit Tax (Net of Provisions) 183.63 35.55

TOTAL 3756.32 1624.90

21. OTHER CURRENT ASSETS: (`̀̀̀̀. in Lacs)



MARCH, 2011

Amount recoverable from Employees / Ex-Employees. 60.43 79.50

Other Claims & Receivables. 4365.22 2947.00

Deposits. 1193.38 1023.76

Other Income accrued & due. 9.58 24.93

Income accrued but not due. 25.17 54.14

Asset Not in Use 645.49 688.42

TOTAL 6299.27 4817.75

22. REVENUE FROM OPERATION : (`̀̀̀̀. in Lacs)



MARCH, 2011

Sale of ServicesRevenue from Transmission Charges 152051.49 121267.82Parallel Operation Charge 502.93 79.61SLDC Fees & Charges 1762.19 1733.27Other Operating RevenueMisc Charges from Consumers 506.50 574.69Income towards Govt. Grants/ Subsidies towards cost of capital assets(Deferred amount) 12868.89 9048.27 Income from Trading -Stores, Scrap etc. 528.97 680.86 Penalties Received from Suppliers & Contractors 5432.91 3801.26 Revenue Subsidies and Grants 19.22 40.63 Misc Revenue 2544.04 4527.00TOTAL 176217.14 141753.41

Note : Asset Not in Use are shown as Written down value


59


23. OTHER INCOME: (`̀̀̀̀. in Lacs)



MARCH, 2011

Interest Income

Interest on Staff Loans and Advances. 247.57 152.77

Interest on Advances to Others. 2.04 0.45

Interest income from other advances - 253.72

Total Interest Income 249.61 406.94

Dividend Income - 0.00

Other Non Operating Income

Other Miscellaneous Receipts. 1283.58 901.79

Total Non Operating Income 1283.58 901.79

Grand Total 1533.19 1308.73

24. EMPLOYEE BENEFITS EXPENSE (`̀̀̀̀. in Lacs)



MARCH, 2011

Salaries. 19961.58 19501.29

Overtime. 1225.23 1078.20

Dearness allowance & Dearness Pay. 11057.7 8270.62

Other allowances. 5750.63 5424.62

Bonus. 22.55 21.45

Medical Expenses Reimbursement. 1059.71 854.85

Leave Travel Assistance. 118.69 28.64

Earned leave encashment. 186.62 82.39

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

Death & accident compensation. 3.74 2.32

Payment under Workmen’s Comp. Act. 25.96 3.42

Interim relief to staff. 0.03 0.00

Board’s contri. Bombay Labour welfare Act. 1.21 1.38

EDLI - Administration charges. 0.43 0.45

Staff Welfare Expenses. 444.11 751.62

Terminal Benefits. 9084.49 9191.21

TOTAL 48953.54 45,217.72

Less : Employee Costs Capitalised. 18288.22 14959.54

TOTAL EMPLOYEE BENEFIT EXPENSES 30665.32 30258.18


60


25. FINANCIAL COSTS: (`̀̀̀̀. in Lacs)



MARCH, 2011

INTEREST EXPENSEInt. on State Government Loans 769.78 574.37Int. on Bonds 2203.18 2555.30Int. on DPG from Banks 2307.03 2605.73Int. on REC Loans 1298.94 1325.41Interest on loan & Borrowings 41433.48 22206.59Int. on Loans from Power Finance Corporation 1019.54 981.41Int. on Loans from ICICI 0.00 0.67Interest on Staff Welfare Funds/Schemes 247.16 230.82Int. on Borrowing for Working Capital. 5711.38 4253.80Discount to Cons. for Timely Payment of Bills 3090.73 2427.01Discount on Bills-Banks/Fin. Inst. 0.17 0.62Total Interest Expenses 58081.39 37161.73OTHER BORROWING COSTSCost of raising finance 42.86 74.06Service Charges / Management fees 0.77 1.60Other Charges 20.46 53.56Guarantee Fees 262.93 283.93Banking Cash Transaction Tax 0.00 0.08Total Borrowing Cost 327.02 413.23TOTAL 58408.41 37574.96Less : Interest & Finance Charges Capitalised 8999.33 5942.18GRAND TOTAL 49409.08 31632.78

26. DEPRECIATION AND AMORTZATION EXPNSE: (`̀̀̀̀. in Lacs)



MARCH, 2011

Amortisation of Lease hold Land 45.43 5.10Depreciation on Buildings 1551.38 1227.19Depreciation on Hydraulic Works 106.68 98.39Depreciation on Other Civil Works 969.81 780.35Depreciation on Plant & Machineries 23921.51 20552.79Depreciation on Lines & Cable Net Works 18444.48 13762.98Depreciation on Vehicles 32.66 46.91Depreciation on Furniture & Fixtures 171.43 164.31Depreciation on Office Equipments 378.18 345.91Depreciation on Small & Low Value Items 0.00 0.49 TOTAL 45621.56 36984.42Less : Depreciation and related costs capitalised. 61.20 61.82TOTAL DEPRECIATION AND AMORTISATION EXP. 45560.36 36922.60


61


27. OTHER EXPENSES: (`̀̀̀̀. in Lacs)



MARCH, 2011REPAIRS & MAINTENANCE EXPENSERepairs and Maintenance to...

Plant and Machinery. 12702.25 9990.24Buildings. 491.33 269.72Civil Works. 808.04 684.83Hydraulic Works. 0.07 0.00Lines, Cable Network etc. 1619.55 1475.93Vehicles. 75.85 49.11Furniture, Fixtures. 58.50 47.85Office Equipments. 667.59 732.33

TOTAL 16423.18 13250.01Repairs and Maintenance expense capitalised. 13.36 34.29 TOTAL REPAIR & MAINTENANCE EXPENSES 16409.82 13215.72 ADMINISTARTIVE & GENERAL EXPENSELease premium on Operating Lease 0.08 0.14Rent including Lease rentals 52.74 18.74Rates and Taxes. 582.00 302.89Penalties on Statutory Levies 0.33 2.66Insurance. 13.43 10.69Testing Charges 18.33 19.51Annual Inspection & Installation Checking fees to Coll. of ED 163.46 151.63Telephone, Postage, Telegram, Telex, Mobile Charges. 313.53 309.79Fee to Auditors for other works. 1.13 0.93Legal Charges. 56.81 60.16Audit Fees. 5.49 4.96Consultancy Charges. 123.44 141.13Technical Fees. 15.90 7.41Other Professional fees and expenses. 272.43 153.14Conveyance & Travel . 2148.46 1787.57Directors’ Fees 0.29 0.16Fees & Subscription, Books & Periodicals. 18.33 13.99Printing & Stationery, Xerox copy Charges 187.93 184.18Expenses on Computer Billing & EDP Charges. 90.32 94.57Advertisements (Other than purchase related). 41.22 41.57Contributions and Charities. 338.49 68.85Electricity Charges. 546.13 458.96Water Charges. 86.30 87.19Maintenance to Tree Plantations. 1.44 1.00Entertainment Expense. 9.37 5.46Expenses on Meetings & Conferences. 36.53 98.50Guest House Expenses. 18.72 1.29Miscellaneous Expenses. 1365.65 1114.45Miscellaneous Losses & Write-offs 14.79 63.57Net Gain / Loss on sale of Fixed Assets 509.61 296.58Freight Expense. 14.99 40.54Other Purchase Related Expenses. 281.10 206.55Rev. Stamps on Receipts issued by the Board. 0.07 0.04Expenditure on Training to Staff. 143.30 313.96TOTAL 7472.14 6062.76Less : Administration & General Expenses Capitalised. 2900.66 2121.23TOTAL ADMIN & GENERAL EXPENSES 4571.48 3941.53GRAND TOTAL 20981.30 17157.25


62


28. EXCEPTIONAL ITEMS (`̀̀̀̀. in Lacs)



MARCH, 2011

0.00 0.000

TOTAL 0.00 0.000

29. PRIOR PERIOD ITEMS (`̀̀̀̀. in Lacs)



MARCH, 2011

Income relating to previous years...

Excess provision for depreciation. 481.29 167.34

Excess provision for interest & finance charges. 21.64 0.14

Other excess provision. 34.39 23.83

Other income. 0.74 1.47

Sub Total 538.06 192.78

Prior period expenses / losses...

Employee costs. 38.48 3.97

Depreciation under provided. 368.27 598.85

Interest & other finance charges. 0.86 6.55

Administration expenses. 0.00 52.12

Other short provision. 0.18 48.81

Other adjustments. 0.22 0.55

Sub Total 408.01 710.85

TOTAL -130.05 518.07

30. TAX EXPENSE (`̀̀̀̀. in Lacs)



MARCH, 2011

CURRENT TAX

Provision for Income Tax 6323.64 5515.69

TOTAL 6323.64 5515.69


63


(31) Contingent liabilities not provided for(`̀̀̀̀. in Lacs)

Contingent liabilities in respect of AS AT 31st


MARCH, 2011

Unexpired Bank Guarantees issued by Banks Nil NilLetters of Credit issued by Banks Nil Nila) Sales tax demand in Appeal / dispute Nil Nilb) Income tax demand in Appeal/ dispute (not provided for) 970.49 626.47

(Refer Note No. 58)c) Service Tax demand (excluding interest) in Appeal / dispute

(not provided for) (Refer Note No. 58) 35.40 Nild) Bill discounted with Bank Nil Nile) Claims against company not acknowledge as debt. 2904.73 2854.86

(32) Estimated amount of contracts remaining to be executed on Capital Account and not providedfor (Net of Advances) is ` 56855.63 lakhs (P.Y. ` 89930.77 lakhs).

(33) Managerial Remuneration(`̀̀̀̀. in Lacs)



MARCH, 2011

Managerial Remuneration paid during the year 34.51 32.00

Estimated monetary value of benefits in cash or in kind 1.00 1.00

Total 35.51 33.00

(`̀̀̀̀. in Lacs)



MARCH, 2011

Audit 4.50 4.50Certifications 0.75 NilOther Services : Taxation Matter Nil NilOthers 0.50 0.30Total ( Excluding of Service Tax ) 5.75 4.80

(34) Auditor’s Remuneration:

(i) Statutory Auditor

(`̀̀̀̀. in Lacs)



MARCH, 2011

Audit 0.48 0.39

Others Nil Nil

Total ( Excluding of Service Tax ) 0.48 0.39

(ii) Cost Auditor


64


(35) Fixed Assets and Depreciation(i) Consequent upon unbundling of business of GEB, various lands and buildings of group

companies are shared / used by companies other than the owners. User charges thereofare not recovered or provided in absence of any mechanism for its determination andthus same can not be quantified.

(ii) The company has received the gross fixed assets as well as accumulated depreciationfrom erstwhile GEB vide the notification by government. Accordingly the opening netblock of all fixed assets has been restated as on 31.03.2005. Further the depreciationhas been accounted for subsequent years as per the depreciation policy.As per Para 14 of Accounting Standard – 10 “Accounting for Fixed Assets” an item offixed asset that has been retired from its active use and is held for disposal is to bestated at the lower of Net Book Value or Net Realizable Value (NRV). However, theCompany has not determined the NRV for assets retired from active use as themanagement is of the opinion that the NRV of the same is higher than the Net BookValue due to very old assets and upward trend in scrap rates. As a result of this, companyhas not recognized any expected loss, if any, in the Profit and Loss Account. Discardedassets are treated as ‘Assets not in use’ on and from the date of approval by competentauthority.

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

(37) Capital Work In Progress(i) The company does not provide GEC and HOSC on amount of ̀ 1722.69 Lakhs (previous

year ` 1639.02 lakhs) expenditure recorded under the head unbilled capital work inprogress.

(ii) The rates of HOSC have been fixed at 9% and 15% for construction division andtransmission division respectively which are loaded on the cost of Material and labourincurred during the year.

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

(iii) Management has issued circularized instructions to load borrowing costs @ 6.234% tothe value of opening CWIP and net additions during the year. The circles and divisionaloffices are also instructed not to load borrowing costs in cases where the works havebeen suspended for one year or more as of 31/03/2012. Such loading is subject toadjustments if any.

(38) Compensation for usage of Inter Company Assets :Consequent upon unbundling of business of erstwhile GEB, various assets including landsand buildings belonging to the companies are used by Holding Company / Other fellowsubsidiary companies. Common expenses for maintenance / usage of such assets havebeen apportioned and debited to Holding Company / other fellow subsidiary companies on


65


reasonable basis. However, for such other un-identifiable expenses or income, no provisionhas been made for any such charges receivable or payable to or by the company.

(39) Provisions

(i) Employee Cost :

Employees of erstwhile GEB were transferred under the Scheme with complete benefitof continuation of service without break and on same terms and conditions as wasprevailing on the effective date of transfer. The employee costs in respect of thetransferred employees have been accordingly accounted.

(ii) Leave encashment and Gratuity :

The company has adopted policy of accounting liability for leave encashment on thebasis of actuarial valuation by Life Insurance Corporation of India in accordance with AS15 (Revised) ‘Employee Benefits’. The actuary determined past service cost arising onthe introduction of retirement benefit of Leave encashment for its existing employees ason 31st March 2012. Liability for the current year of ` 1829.59 lakhs (` 1697.16 lakhs)has been charged to Profit and Loss Account.

Gratuity liability has also been worked out on actual rate basis by the Life InsuranceCorporation of India as per AS 15 (Revised) – “Employee Benefits”.

The disclosure of Leave Encashment and Gratuity are made as under:

Particulars Leave Encashment Gratuity

2011-12 2010-11 2011-12 2010-11

Amounts recognized in the balance sheet

Present value of obligation 15876.73 14047.13 23092.75 20954.31

Fair Value of Plan Assets NIL NIL 11911.76 9552.43

Unrecognized past service cost NIL NIL 0.00 0.00

Net Liability in the Balance Sheet 15876.73 14047.13 11180.99 11401.88

Cost for the period

Current Service Cost 208.56 228.98 941.59 886.63

Interest on obligation 1123.77 988.00 1676.35 1441.86

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

Net Actuarial (Gains) / Losses recognised in the year 1403.47 1039.93 1167.62 1896.08

Past Service Cost NIL NIL NIL NIL

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

Expenses recognised in the statement of Profit & Loss 2735.80 2256.91 2807.70 3469.80

Change in Benefit Obligations

Opening defined benefit obligation 14047.13 12349.97 20954.31 18023.30

Prior period adjustments NIL NIL NIL NIL

Current Service Cost 208.56 228.98 941.59 886.63

Past Service Cost NIL NIL NIL NIL


66


Particulars Leave Encashment Gratuity

2011-12 2010-11 2011-12 2010-11

Interest on obligation 1123.77 988 1676.35 1441.86

Actuarial (Gains) / Losses 1403.47 1039.93 1065.64 1854.58

Benefits paid (906.20) (559.75) (1545.14) (1252.05)

Closing defined benefit obligation 15876.73 14047.13 23092.75 20954.31

Changes in Plan Assets

Opening fair value of Plan Assets NIL NIL 9552.43 7058.95

Expected return on Plan Assets NIL NIL 977.86 754.77

Actuarial Gains / (Losses) NIL NIL (104.28) (37.45)

Employers Contributions NIL NIL 3034.95 3028.21

Assets acquired in an amalgamation in the nature of purchase NIL NIL NIL

NIL

Exchange differences on foreign plans NIL NIL NIL NIL

Benefits paid NIL NIL (1545.14) (1252.05)

Benefits paid earlier credited to fund (4.06)

Closing fair value of Plan Assets NIL NIL 11911.76 9552.43

Principal Acturial Assumptions

Rate of Discounting 8% 8% 8% 8%

Expected Return on Plan Assets - - 9.50% 9.50%

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

Attrition Rate 3% to 1% 3% to 1% 3% to 1% 3% to 1%

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

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

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

(43) Borrowing CostAs per AS 16 “Borrowing Cost” Borrowing costs that are attributable to the acquisitionconstruction or production of qualifying assets are capitalized as part of such assets. Howeverit is not possible to arrive at cost to the company to be charged to qualifying asset and hencehas adopted the average rate of borrowing to its Holding Company which has provided fundsto the company. The treatment given by the company does not meet the requirement of AS 16in to-to and the effect of which is not quantifiable.

The amount of Borrowing Cost capitalized during the year amounts to ` 9002.56 lakhs (P.Y.` 5942.18 lakhs).


67


(44) Provision for Taxation

(i) Provision for current tax includes following:(`̀̀̀̀. in Lacs)



MARCH, 2011

Income tax (MAT) 6323.64 5515.69

Deferred tax charge/(credit) (net) Nil Nil

Wealth tax 0.42 0.54

(i) In accordance with the AS 22 “Accounting for taxes on Income” issued by ICAI Companyhas recognized Deferred Tax on the basis of “Income Approach”. The Company hashuge carried forward losses and unabsorbed depreciation under the Income Tax Act.However as a matter of prudence deferred tax assets for the year have been recognizedto the extent of deferred tax liability. Hence the Net effect in the books of accounts is‘NIL’.

“Deferred Tax on the depreciation on the opening balances of the assets vested by theGovernment of Gujarat for the financial year 2005-06 under various notifications andRestructuring Plan have not been recognized on the basis of not considering the timingdifference. Further consequential difference between the amount of depreciation foraccounting purpose and tax purpose in respect of such assets in subsequent yearswould also not to be considered as timing difference”.

The Deferred tax liability is worked out as under:

ParticularsAS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011

Difference in Depreciation —- 6500.25 —- 8290.38

Provision for Leave Encashment 565.34 —- 524.42 —-

Provision for Gratuity —- —- —- —-

Preliminary Expenses —- —- —- —-

Total Deferred Tax Asset/(Liability) 565.34 6500.25 524.42 8290.38

Net Deferred Tax Asset /(Liabilities) (5934.91) —- (7765.96) —-

Carried Forward Unabsorbed Losses 2431.71 —- 10661.50 —-

Carried Forward Unabsorbed Depreciation 18667.17 —- 18667.17 —-

Carried Forward Deferred Tax Asset 21098.87 —- 29328.67 —-

Set off against C/f Deferred Tax Asset 5934.91 —- 7765.96 —-

Net Carried Forward Deferred Tax Assets 15163.97 —- 21562.71 —-

Net Deferred Tax Asset/(Liability)

for the year — — — —

DeferredTax AssetAmount

DeferredTax Liability

Amount

DeferredTax AssetAmount

DeferredTax Liability

Amount

(`̀̀̀̀. in Lacs)


68


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

Particulars Amount ( `̀̀̀̀ in lakhs)

Total outstanding as on 31st March 12 Nil

Outstanding for more than 30 days Nil

Interest paid /payable Nil

(46) Segment Information

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

(47) Related Party Disclosures

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

(48) Assets charged for the security by G.E.B

As per the legal opinion of the counsel the transferee company (GETCO) which has acquiredthe property on which the charge is already created by erstwhile GEB is required to registercharges under the provisions of the Companies Act 1956. Due to the common funds for all theoperations of erstwhile GEB funds were raised against the charge over all its assets. Howeverthe amount of secured loans of erstwhile GEB which are secured against the separate propertiestransferred to each transferee company has not yet been identified. GETCO therefore has notregistered the charge on these properties with the registrar of companies Gujarat.

(49) Secured and Unsecured Loans

(i) As per Clause 3(2) of the Gujarat Electricity Industrial (Reorganization & Regulation) Actand Comprehensive Transfer Scheme 2003 if the assets of the undertaking transferredare subject to security document in favour of third party (Lender) for any financial obligationor arrangement by Erstwhile GEB and the said loans are required to be apportioned todifferent transferees the Govt. may by order do so and on such apportionment the Securitywill be applicable to that apportioned liabilities only by operation of Law.

(ii) The Govt. has in FRP notification apportioned total loans of Erstwhile GEB as LongTerm Loans ` 139292.45 lakhs and Short Term Loans ` 94333.00 lakhs. Further GUVNLhas raised several loans for common usage of transferee companies. Out of above,GUVNL has apportioned secured and unsecured loans to the Company, which are shownunder grouping of Secured Loans and Unsecured Loans according to the security given.

(iii) The loans which were raised by Erstwhile GEB from Bonds, Banks, PFC, REC, LIC,Financial Institutions and other Lenders against the Security of the assets relating toGeneration, Transmission and Distribution activities and were used for common purposesare continued in the Books of GEB / (now GUVNL) on behalf of all transferee companiesand the same have been apportioned under FRP Notification dated 3rd October,2006based on their purpose and usage amongst all transferee companies and the same


69


loans have been accounted by the Company as “Loans allocated from GUVNL – LenderWise” in separate accounts. The repayments and interest thereon are reimbursed bythe Company to GUVNL.

(50) Value of imports calculated on C.I.F. basis is Rs. Nil. (P.Y. Rs. Nil)

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

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

( `̀̀̀̀. in Lacs)



MARCH, 2011

Expenditure in foreign currency on account ofRoyalty know-how professional-consultancy feesinterest and other matters. Nil Nil

(53) Expenditure in foreign currency

(54) Earning in foreign currency( `̀̀̀̀. in Lacs)



MARCH, 2011

Earning in foreign currency on account of export of goodson F.O.B. basis royalty know-how professional-consultancy fees interest and other incomes. Nil Nil

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

(56) Amount receivable from the Sundry Debtors for wheeling charges includes an amount of` 36577.08 lakhs (P.Y. ` 36577.08 lakhs) which is under litigation in the courts of law. Howeverthe above amount is considered to be good.

( `̀̀̀̀. in Lacs)



MARCH, 2011

Indigenousi) Raw Materials Not Notii) Spares ascertainable ascertainableiii) ComponentsImportedi) Raw Materials Not Notii) Spares ascertainable ascertainableiii) Components


70


(57) Legal ownership (titles) of immovable properties

The immovable properties in respect of which the account balances have been transferredare held in the name of GEB – erst. The procedure for the registration and/ or transfer in thename of the Company has been initiated.

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

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

The appeal for Fringe Benefit Tax with Commissioner of Income Tax (Appeals) has beendecided against the Company after 31st March 2012, and now the Company has preferredsecond appeal with ITAT, Ahmadabad.

Consequent to the order giving effect to the Commissioner (Appeals)’s order, the incometax demand stands revised to ` 538.28 Lakhs and Fringe Benefit Tax demand remainsto ` 147.52 Lakhs.

(2) For Assessment Year 2009 – 2010 (F.Y. 2008 – 09), The Income Tax Department hasraised the demand of ` 396.50 Lakhs towards Income Tax. As against the demand ofIncome Tax for the said year, the Company has paid ` 200 Lakhs on 15th March, 2012.Further, the Company has filed an appeal with Commissioner of Income Tax (Appeal) inthe matter of income tax, which is not yet finalized.

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

A refund of ̀ 175.47 Lakhs for the Assessment Year 2006 – 2007 has also been adjustedby the income tax department against the said demand. Consequently, the income taxdemand stands revised to ` 21.03 Lakhs.

Provision of Income Tax for the above assessment years will be considered on finalizationof appeals.

(3) Service Tax – For the period October 2007 to March 2008, In case of Limbdi ConstructionDivision of Surendranagar Tr. Circle, Addl. Commissioner of Central Excise, Bhavnagarhas raised the Service Tax demand of ` 35.40 Lakhs plus Interest for the aforesaidperiod. In this matter, company has filed an appeal with Commissioner (Appeal), CentralExcise, Rajkot. Commissioner (Appeals), Central Excise, Rajkot had disposed off appealagainst company. Aggrieved by the order of Commissioner (Appeals), Company is inprocess of filing the appeal with Custom, Central Excise & Service Tax Appellate Tribunal(CESTAT).


71


(59) As per the recommendations of the Girish Pradhan committee and the directives of theRegulatory Commission, GETCO has initiated steps for separation of State Load DispatchCentre as a separate company. GETCO is awaiting the approval of the State Govt. for thesame, based on which all actions will be taken.

(60) Government Grant, Subsidy and Consumer Contribution:

All receipts of consumer’s contributions, grants and subsidies received from 1st April 2005 aretreated as deferred revenue and in absence of identification of grants with assets, consideringthe average useful life of assets 11.75% (10 % Previous Years) of the year end balance istransferred to Profit and Loss Statement.

(61) Share Application Money Pending Allotment :

During the Year 2011-12, Share application money received from GUVNL amounting to` 8420 Lakhs. Terms & Condition, Number of shares proposed to be issued, amount of premium,the period of allotment, interest if any on refund amount is under consideration and will bedecided by the members in the General Meeting.

(62) Earnings Per Share:

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

As per our report of even date attached For and on behalf of Board of Directors

For Prakash Chandra Jain & Co. Gujarat Energy Transmission Corporation LimitedChartered Accountants

Firm Reg. No. 002438C

(CA. Dinesh C. Jain) (D.J.PANDIAN, IAS) (S. K. NEGI)

Partner Chairman Managing Director

M. No. 041235

(B.C.SHAH) (Nishant Shrivastava)

General Manager (F&A) Company Secretary

Place: Vadodara Place: Gandhinagar

Date: 27-09-2012 Date: 27-09-2012

Particulars 2011-12 2010-12

Earnings (Profit After Tax & Before Extra-ordinary /Exceptional items

(Rs. In Lakhs) 24940.68 21057.57

No. of Equity Shares of ` 10 Each (Basic & Diluted ) 511383340 494716674

Equity Shares Equity Shares

Earnings Per Share (In `) 4.88 4.26


72


gujarat energy transmission corporation ltd. · annual report 2011-12 1 ... place gujarat energy...

Documents