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TRANSCRIPT
10th
Annual Report 2011-2012
Mangalore Electricity Supply Company Limited
2
Mangalore Electricity Supply Company Limited
BOARD OF DIRECTORS
1. Sri S. Selvakumar, IAS - Chairman
2. Sri S. Sumanth - Managing Director
3. Sri H. Nagesh - Director (Tech)
4. Dr. Aditi Raja - Director
5. Sri N.S Channappa Gowda IAS - Director
6. Sri H.R. Nagendra - Director
7. Sri D. Basavaraju - Director
8. Sri V. Venkatashiva Reddy - Director
9. Sri M. Nagaraj - Director
10. Sri P. Rama Amin - Director
11. Sri G.K. Shadaksharappa - Director
Registered Office
Paradigm Plaza, A.B Shetty Circle, Mangalore – 575001
Bankers:
1. Syndicate Bank
2. State Bank of India
3. State Bank of Mysore
4. Canara Bank
5. Vijaya Bank
6. Corporation Bank
7. Punjab & Sindh Bank
8. UCO Bank
9. Indian Bank
10. Axis Bank
11. Karnataka Bank
Statutory Auditors
M/s. Ganesh & Sudhir, Chartered Accountants, Mangalore
Cost Auditors
M/s. Rao Murthy & Associates, Cost Auditors, Bangalore
3
Annual Report 2011-12
TABLE OF CONTENTS
1. Directors‟ Report…………………………………………………………….. 4
2. Addendum to the Directors‟ Report……………………………….............. 24
3. Auditors‟ Report………………………………………………………………. 29
4. Annexure to the Auditor‟s Report…………………………………………… 32
5. Comments of the Comptroller and Auditor General of
India on the Annual Accounts……………………………………… ……….. 35
6. Balance Sheet………………………………………………………. ………. 36
7. Statement of Profit & Loss ……………………………………...….. ……… 37
8. Cash Flow Statement………………………………………………... ……… 38
9. Significant Accounting Policies….……………………………………………. 39
10. Notes on Financial Statements……………………………………………….. 43
11. Vital Statistics ………………………………………………………………….. 85
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4
Mangalore Electricity Supply Company Limited
DIRECTORS’ REPORT FOR FY 2011-12
1. The Board of Directors herewith present the 10th Annual Report on the
business and operations of the Company along with the Audited Accounts for
the year ended 31st March, 2012.
2. With an annual turnover of about Rs. 1708.90 Crores and a committed pool
of 3953 employees the Company is serving 18.36 lakh Nos. of consumers
located in different parts of coastal and malnad areas in the four revenue
districts of Karnataka State, viz. Dakshina Kannada, Udupi, Shimoga and
Chikkamagalur.
3. At a glance the status of the Company as on 31st March 2012 is as follows:
Area of distribution and Supply (Sq. Km.) 26,222
Number of sub stations 220 KV, 110 KV, 66 KV (of KPTCL) 75
Number of 33 KV sub stations 33
Number of Distribution Transformers 37979
Length of LT Lines (in CKMs) 70672.73
Length of 11 KV Lines (in CKMs) 25968.73
Length of 33 KV Lines (in CKMs) 747.22
4. Consumer Base
As on 1st April 2011, the Company had a consumer base of 1752135 Nos. With the addition of 84,773 Nos. of new consumers during the year, the number of consumers at the end of the year March 2012 stood at 18,36,908 Nos., comprising of the following categories:
Tariff Description Total
LT -1 BJ/KJ 180560
LT-2 (a&b) Lighting & AEH 1221097
LT-3 Commercial 159818
LT-4 IP Set Installations 220728
LT-5 Industrial 21310
LT-6a Public Water Supply 10010
LT-6b Public Lighting 13196
LT-7 Temporary Supply 8964
LT TOTAL 1835683
HT-1 Water Supply 57
HT-2a Industrial 554
HT-2b Commercial 541
HT-3 Lift Irrigation 11
HT-4 Residential Apartments 62
HT TOTAL 1225
LT + HT TOTAL 1836908
5
Annual Report 2011-12
5. Review of Balance Sheet and Statement of profit and loss for the year ending March 31st 2012 with the previous year ended 31.03.2011 is as follows:
Analysis of Balance Sheet (Rs. in Crores)
Sl. No. Particulars 31.03.2012 31.03.2011
I Sources of funds
A Share Capital 172.07 157.34
B Reserves & Surplus 382.48 340.01
C Share holders’ fund 554.55 497.35
D Share Deposit (pending allotment) 0.00 0.00
II Non Current Liabilities
A Long Term borrowings 317.09 311.27
B Other long term liabilities 999.73 813.19
C Long term provisions 22.47 21.63
Sub-total 1339.29 1146.09
III Current liabilities
A Short term borrowings 90.63 41.00
B Trade Payables 360.69 289.96
C Other Current liabilities 333.65 297.67
D Short-term provisions 6.98 3.75
Sub-Total 791.95 632.38
TOTAL EQUITY & LIABILITIES 2685.79 2275.82
II Assets
1 Non-Current assets
A Fixed Assets
(i) Trangible Assets 926.99 843.35
(ii) Intangible assets 0 0
(iii) Capital work in progress 72.24 93.21
(iv) Intangible assets under development 0 0
B Non-Current investments 2.51 2.51
C Deferred tax assets (net) 0 0
D Long term loans and advances 2.57 2.43
E Other non-current assets 870.24 715.03
F Deferred Costs 0 0
Sub Total 1874.55 1656.53
2. Current assets
A Current Investments 0 0
B Inventories 32.50 18.26
C Trade receivables 351.21 288.85
D Cash and cash equivalents 37.39 28.00
E Short-term loans and advances 21.83 29.66
F Other current assets 368.31 254.52
Sub-Total 811.24 619.29
TOTAL ASSETS 2685.79 2275.82
6
Mangalore Electricity Supply Company Limited
Share holders’ Funds has increased by Rs. 57.20Crs. (Net). Amounts added are:
1. Reserve for Material Cost Variance : - 4.31 Crs
2. Consumers contribution towards cost of Capital Assets : 40.37 Crs
3. Equity released by State Govt. : 14.73 Crs
4. Net Profit for the year : 6.41 Crs
Total additions to Share Holders’ fund : 57.20 Crs
Long term borrowings: During the Year MESCOM has borrowed Rs. 86.23
Crs and installments repayable during FY 12-13 amounting to Rs. 77.67 Crs
has been transferred to current liabilities. Further, Loan sanctioned by the
GOK during FY 2010-11 for SCP & TSP Projects to an extent of Rs.2.73 Crs is
converted into equity during the Year 2011-12.
Other Long Term Liabilities: It is increased by Rs. 186.53 Crs (Net). During
the Year the long term trade payables have increased by Rs. 158.68 Crs,
Initial/ Additional Security deposits have been collected to the extent of Rs.
31.71 Crs and MSD to the extent of Rs.2.99 Crs. The payable to other
ESCOMs has been increased to the extent of Rs. 2.62 Crs, whereas security
deposit and retention money from the Contractors to an extent of Rs. 9.67 Crs
has been refunded. And there is an increase of Rs. 0.20 Crs in miscellaneous
deposits.
Long Term Provisions: It is increased by Rs. 0.83 Crs due to additional
liability created in accordance with actuarial valuation report towards Earned
leave encashment and FBF.
Short Term Borrowings: There is an increase of Rs. 49.62 Crs. This is due to
net drawl of short term borrowings for working capital needs.
Trade Payables: The trade payables have been increased by Rs. 70.73 Crs
(net) mainly due to non-payment of power purchase dues.
Other Current Liabilities: It is increased by Rs. 35.97 Crs mainly due to the
following:
1. Additional loan repayment liability 7.93 Crs.
2. Liability for the supply / Works 7.20 Crs.
3. Employees liabilities 7.33 Crs.
4. Payables to GOK 2.45 Crs.
5. Interest payable on Consumers‟ Deposit 1.36 Crs.
6. Others 9.70 Crs.
Total 35.97 Crs.
7
Annual Report 2011-12
Tangible Assets: It has been increased by Rs. 83.64 Crs (Net) due to
categorization of Capital Works during the Year.
Capital Work in progress: It is decreased by Rs. 20.97 Crs due to
categorization of completed works.
Long Term Loans and Advances: It is increased by Rs. 0.13 Crs due to
additional deposits made with other departments.
Other Non- Current Assets: It is increased by Rs. 155.21 Crs. Out of this an
amount of Rs. 144.36 Crs is due from other ESCOMs towards Energy
Balancing.
Inventories: It is increased by Rs. 14.24 Crs.
Trade receivables: It is increased by Rs. 62.35 Crs mainly by non-payment of
monthly dues by VPs/TPs, TMCs /CMCs and Corporations.
Short term Loans and Advances: it is decreased by Rs. 7.83 Crs. due to
adjustment of advance to the contractors towards the Capital works.
Other Current Assets: It is increased by Rs. 113.79 Crs (Net). Out of which
Rs. 126.71Crs is receivable from GOK towards free supply of power to IP sets
upto 10 HP. Further there is a reduction to the extent of Rs. 42.27 Crs in
Regulatory Assets in accordance with KERC Tariff Order 2010.
Ratios
Sl.No. Particulars 31.03.2012 31.03.2011
1 Debt: Equity Ratio
a) Long Term Borrowings : Equity
b) Including short term borrowings
1.84 : 1
2.82 : 1
1.98 : 1
2.68 : 1
2 Current Ratio 1.02 : 1 0.98 : 1
3 Liquid Ratio 0.98 : 1 0.95 : 1
Analysis of Statement of Profit and Loss (Rs. in Crs.)
Sl.
No. Particulars 31.03.12 31.03.11
Increase/
decrease
Variance
in (%)
A Income
1 Revenue from operations
(Distribution of Power) 1545.31 1400.48 144.83 10.34
2 Other Income 163.59 78.11 85.48 109.43
Total Revenue 1708.90 1478.59 230.31 15.58
8
Mangalore Electricity Supply Company Limited
Sl.
No. Particulars 31.03.12 31.03.11
Increase/
decrease
Variance
in (%)
B Expenses
1 Purchase of power 1276.26 1103.60 172.66 15.65
2 Employee Benefits Expense 187.79 173.05 14.74 8.52
3 Finance Costs 119.18 93.79 25.39 27.07
4 Depreciations and amortization
expenses 61.31 50.94 10.37 20.36
5 Other Expenses 55.80 54.89 0.91 1.66
Total Expenses 1700.34 1476.27 224.07 15.18
C Profit before exceptional and
extraordinary items & tax 8.56 2.32 6.24 268.97
D Exceptional Items 0.00 0.00 0.00 0.00
E Profit before extraordinary items
and tax 8.56 2.32 6.24 268.97
F Extraordinary Items 0.00 0.00 0.00 0.00
G Profit before tax 8.56 2.32 6.24 268.97
H Tax Expense 2.15 0.62 1.53 246.77
I Profit after Tax 6.41 1.70 4.71 277.06
Total Revenue has increased by 10.34% (Rs. 144.83 Crs.) over the previous year.
Other Income has increased by 109.43% (Rs. 85.48 Crs) over the previous year mainly due to accountal of subsidy receivable from the GOK in accordance with truing up Orders of KERC for the Years 2007-08, 2008-09 and 2009-10 to the extent of Rs. 123.26 Crs.
Since the arrears in respect of IP set Consumers having connected load upto 10 HP is freezed with effect from 01.08.2008, the Company has not charged interest on said arrears during the year 2011-12.
Power purchase cost has been increased by 15.65% (Rs. 172.66 Crs) over the previous year. The energy balancing result is awaited from LDC as on the date of preparation of the accounts. However the Energy Balancing Result arrived at joint reconciliation meeting held among the ESCOMs has been incorporated in the accounts to the extent of Rs. 144.36 Crs. Otherwise the power purchase cost would have been shoot up to that extent.
Employee cost has increased by 8.52% (Rs. 14.74 Crs) over the previous year on account of increase in salaries, wages and increase in the rate of pension contribution payable to the Trust.
Finance Charges has increased by 27.07 % (Rs. 25.39 Crs) over the previous year on account of increase in interest paid on loans drawn from Commercial Banks and interest payable for belated payments of power purchase dues.
Depreciation and amortization expenses have increased by 20.36% (Rs. 10.37 Crs) over the previous year, due to charging of depreciation on increased fixed assets.
9
Annual Report 2011-12
Other expenses has increased marginally by 1.66% (Rs. 0.91 Crs) over the previous year.
Profit before Tax has increased by 268.97% (Rs. 6.24 Crs) over the previous year.
The Current tax works out at Rs. 2.15 Crs, against the profit of Rs. 8.56 Crs on MAT basis.
Profit after Tax has increased by 277.06 % (Rs. 4.71 Crs) over the previous year. Company has accounted the energy balancing results for FY 2012 due to which Rs. 144.36 Crs is receivable from other ESCOMs. Due to this the Company has adverse effect on Cash Management, eventhough there is book profit.
6. An overview of the performance of MESCOM with regard to Distribution Transformers, HT/LT lines, Electrification, and Revenue Collection Efficiency is as under:
Sl. No. Particulars Unit 2011-12 2010-11 2009-10
1 Total Lines & TCs added: a. DTCs erected Nos. 2917 3382 2589 b. 11 KV HT lines RKms 1057.17 1264.24 953.91 c. LT lines RKms 1915.53 2673.06 1430.63 d. Reconductoring of HT Lines RKms 281.36 346.53 559.33 e. Reconductoring of LT Lines RKms 654.98 719.39 810.94 2 DTC Failure % 9.48 9.16 9.49 3 RE Works: a. Electrification of Hamlets Nos. 293 206 183 b. Electrification of Harijan Basthies/
JCs/ Tandas Nos. 67 50 79
c. Electrification of Tribal Colonies Nos. 40 19 75 4 Servicing of: a. Drinking Water Supply Schemes Nos. 342 284 574 b. Ganga Kalyana Schemes Nos. 1173 1162 1053 5 Total Energy Handled Mus 4072.42 3600.09 3273.83 6 Distribution loss % 12.09* 11.92 12.64 7 IP set serviced a. New IP sets Nos. 7459 6499 8857 b. Regularisation of Unauthorised IP
sets Nos. 13556 - -
8 BJ/KJ installations serviced Nos. 9390 33393 4713 9 Collection Efficiency: a. Overall % 95.34 99.56 96.88 b. Without IP, GP, BJ/KJ, Municipality % 98.59 99.69 99.98 c. Without IP % 95.15 97.27 98.04 10 HT Consumption: a. Total Mus 895.52 858.04 752.88 b. Without EHT Mus 610.21 541.21 472.38 11 Growth in Demand
(a) Total % 16.95 33.04 14.89 (b) Excluding IP Sets % 13.54 20.13 8.24
12 Growth in Collection (a) Total % 14.64 36.71 14.85
(b) Excluding IP Sets % 11.09 19.19 12.47
* Methodology is being reviewed
10
Mangalore Electricity Supply Company Limited
7. Dividend :
The Board has not proposed any dividend for the financial year ended
31st March, 2012.
8. Power purchase:
During the year 2011-12, the power purchase is 4217.91 MU. at a total cost of
Rs. 1276.26 Crs. Total energy available for sale is 4072.42 Mus. Total sales during the year
were 3570.21 MU including unbilled energy of 47.63 MU. Remaining 502.21 MU was
attributable to system loss.
9. Source of funds & Borrowings:
a) The source of funds of the Company stands at Rs. 554.55 Crs. at the end of
the Financial Year comprising of Equity Share Capital A/c of Rs.172.07 Crs.,
and Reserves & Surplus of Rs. 382.48 Crs.
b) The total long term borrowing of the Company amounts to Rs. 317.09 Crs. and
the security deposits amounts to Rs. 313.63 Crs.
10. Milestones achieved during 2011-12:
Several initiatives have been taken up to strengthen and stabilise the distribution
system as well as the fiscal status of the Company. A bird‟s eye view of some of the major
achievements and the innovative initiatives are as follows:
(A) Addition of new Distribution Transformers to the System: In order to
improve the quality and reliability of power supply, 2917 numbers of
distribution transformers are added to the system in the identified low voltage
pockets.
(B) Metering Programme:
(i) The Company is marching towards 100% metering of the installations.
With a perennial and dedicated commitment, through universal metering
programme, the Company has achieved 98.13% metering as at the end of
FY 12.
(ii) During FY 2011-12, 40581 Nos., of DC/MNR Meters, 17370 Nos., of IP
Sets, 7597 Nos., of BJ/KJ installations and 810 Nos., of Street light
installations have been metered.
(C) Metering of Distribution Transformer Centers:
For more effective energy audit, it is contemplated to meter all Distribution
Transformer Centers with Automatic Meter Reading facility. 15,906 Nos. of
DTCs have been metered as on 31.3.2012.
(D) RGGVY:
(a) For implementation of RGGVY scheme in Shimoga & Chikmagalur
Districts, works amounting to Rs.78.14 crores have been awarded on Total
Turnkey basis to M/s L&T Ltd., Bangalore and is in the verge of
completion.
11
Annual Report 2011-12
The progress as on 31.3.2012 is as follows:
Sl. No.
District No of villages in which Work
completed
No. of Rural Habitations
in which Work
completed
No. of BPL house holds
electrified
Total No. of households electrified
(including BPL)
Total Outlay
(Rs.In Cr.)
1 Shimoga 1289 119 23784 46088 35.76
2 Chikmagalur 939 124 22933 67709 31.22
Total 2228 243 46717 113797 66.98
(b) For implementation of RGGVY in Dakshina Kannada and Udupi Districts M/s REC has communicated the approval for the project amounting Rs. 59.47 crores and Rs. 21.57 crores respectively. The tendering is under process.
The scheme details are as follows:
Description Un
Electrified Habitation
RHH (Including
BPL) BPL
Length of HT line (RKm.)
No.of DTs
(25 KVA)
Length of LT line (RKm.)
Sph 2W
2ph
3W
3 Ph 4W
Dakshina Kannada
98 31445 22121 620.80 570 1949.67 47.25 161.95
Udupi 50 10288 5661 187.43 138 725.45 67.45 122.79
Total 148 41733 27782 808.23 708 2675.12 114.70 284.74
(E) R-APDRP:
1. R-APDRP works approved by MoP, GoI have been taken up in respect of 11
nos., of towns of Dakshina Kannada, Udupi, Shimoga & Chikmagalur Districts.
2. MOP, GoI has approved a total loan amount of Rs. 12.07 crores. M/s. RIL,
Mumbai has been appointed as the common IT consultant at an award cost of
Rs. 0.36 crores. M/s. Infosys has been appointed as the IT implementation
Agency at an award cost of Rs. 24.89 crores.
3. The progress of works/ implementation of different modules are as follows,
i. Metering, billing & collection (MBC) – Module has gone live in Shikaripura
pilot town. In Kadur & Tarikere towns the process is in progress.
ii. Covering of entire sub-division installations in MBC module is under
consideration.
iii. GIS survey is completed in Shikaripura & Kadur towns. In Tarikere, Puttur
& Bantwal towns it is in progress.
iv. Customer care Centre is located at Kadri (SCADA building), final
installation works are in progress.
v. Installation of GPRS Modems to transformer Centres, feeders & HT
installations, for remote communication & Energy Audit is also taken up in
R-APDRP towns.
12
Mangalore Electricity Supply Company Limited
(F) New 33/11 KV Sub-stations:
33/11KV Sub-station at Malpe in Udupi district with connected lines at a cost of
Rs. 5.06 Crores is in progress.
33/11KV Sub-station at Gangolli in Udupi district with connected lines at a cost
of Rs. 2.74 Crores is in progress.
Augmentation of existing 33/11KV sub-station at Nandigudda in Mangalore at
a cost of Rs. 86.30 Lakhs is in progress.
For better power supply to Byakodu village and surrounding areas located at a
distance of 71.32 Kms from Hosanagar, it is proposed to establish a 33/11KV,
1X5MVA sub station at Byakodu with LT line to an extent of 60 Kms at a total
estimated project cost of Rs.784.31 lakhs.
33KV Sub-station at NR Pura with terminal bays and lines at a cost of
Rs.11.50 Crores is in progress.
Further, new 33/11KV Sub-stations at Kakkinje, Campco-Puttur, Subramanya,
and Augmentation of existing 33/11KV sub-stations at Vogga, Kukkipady and
Nelyadi are on cards.
11. New Initiatives :
Implementation of Energy Efficient Irrigation Pump sets
In MESCOM 2 Nos. of 11KV feeders viz., Kabaka in D.K.District and Manai in
Udupi District have been identified for replacement of existing Irrigation Pump
sets by Energy Efficient Pump sets. The GIS mapping including consumer
indexing has been completed and the data validation is under progress.
Compact Sub-Station
MESCOM intends to introduce Compact Substations with remote operation
and communication facility for the first time in MESCOM jurisdiction. The
primary advantage of having a Compact Substation is lesser space
requirement as the space is the main constraint in urban areas.
It is proposed to make it unmanned sub-station by using Auto-reclosures for
33KV & 11KV breakers. Further we intend to integrate with the ALDC
(SCADA) at Kadri in Mangalore. The time and capital required for the
construction of compact substations is also very less in comparison to a
conventional 33/11KV Sub-Station.
SCADA:
MESCOM in association with KPTCL has implemented Integrated Extended
SCADA (IES) in 27 Nos of 33KV sub stations coming under its jurisdiction.
MESCOM has taken initiative for implementation of Integrated Extended
SCADA, phase -II for the newly commissioned 6 Nos. of sub-stations and
4 Nos. of upcoming sub-stations at a total cost of Rs. 1.35 Crores. With this,
MESCOM will have its all 33/11KV Sub-stations provided with SCADA facility.
13
Annual Report 2011-12
12. Proposed Target for Capital Investment Plan 2012-13:
Sl. No. Schemes Target
1. Electrification of Hamlets 100 Nos.
2. Electrification of HB/ JC/ Tandas 36 Nos.
3. Electrification of Tribal Colonies 12 Nos.
4. Energization of IP sets 3500 Nos.
5. Kutir Jyothi 2800 Nos.
6. Service Connection 50, 000Nos.
7. Addition of new 33 KV sub-stations and allied lines 3 Nos.
8. Augmentation of 33 KV Stations. 1 Nos.
9. New HT Line 1200 Kms.
10. New LT line 1200 Kms.
11. Distribution Transformers 3000 Nos.
13. Civil Engineering Works: During 2011-12 Civil Engineering Wing has carried out the construction of office buildings and other infrastructure works as noted below:
[Rs. in lakhs]
Sl. No.
Particulars
Completed Works Expenditure during
11-12 of Spill over
Works
Expenditure during 11-12
No. of works completed
1. Construction of office building / stores/ guest houses and other building and extension works
105.6 15 85.17
2. Other infrastructure works such as compound, road, water supply, fencing & drainage etc.,
153.59 40 4.39
Total 259.19 55 89.56
For Financial year 2012-13, a budget of Rs. 800 lakhs is allocated towards spill-over
and fresh Civil Engineering works in MESCOM.
14. New initiatives in procurement of Materials:
(i) Energy Efficient 3 Star labeled Distribution Transformers :
In order to comply with the Energy Conservation Act 2001, procurement of energy
efficient, minimum 3 star labeled distribution transformers has been implemented. Number
of such distribution transformers procured during FY-2011-12 is as below:
Capacity Numbers
63 KVA 1461
25 KVA 968
(ii) The following polymeric type materials are being procured in order to minimize the failure rates in case of Porcelain type Materials.
Only Polymeric type Lighting Arrestors are being procured in order to minimize the distribution transformer failure rate especially in the heavy lightning prone areas.
14
Mangalore Electricity Supply Company Limited
45KN Polymeric type Insulator for 11 KV distribution system are procured for
usage in the coastal and heavy lightning prone areas.
5 KN Polymeric type Pin Insulator for 11 KV distribution system are being
procured for usage in the coastal and heavy lightning prone areas.
(iii) All the tender process are carried out at e-procurement portal only. On this
training and practical guidance has been given to the concerned staff and officers.
15. New O&M Circle Offices and New Divisions:
For better administrative control and effective services to the consumers, new O&M
Circle Offices have been formed with the headquarters at Udupi and Chickmagalore duly
bifurcating Mangalore and Shimoga Circles respectively. Further, a New works division has
been formed at Mangalore duly bifurcating the existing O&M Division Mangalore. Further
new O&M Sections have been formed for the better O&M activities and customer services.
16. Public Grievances Cell:
a. During the year 2011-12, the Public Grievances Cell received 677 Nos., of
written complaints out of which 92.46% ie., 626 Nos., of complaints were
resolved satisfactorily. The remaining 51 complaints were redressed in the
current financial year. Further 523 Nos., of minor complaints relating to
fuse-off call, low voltage etc were received through Telephonic Calls.
b. The category-wise complaints:
Sl. No.
Category of Complaints Nos. of
Complaints
1 Electricity Supply & Distribution code-violation 106
2 Voltage/interruptions 55
3 Bills related 21
4 Delay in Sanction & work 0
5 Accident & Compensation 39
6 Theft & unauthorized use of Electricity 14
7 Transformers Shifting etc. 73
8 Bribe/corruption/dishonest 84
9 Reduction in deposits /load reduction/repayment of deposits 03
10 New connection 115
11 Disconnections 09
12 Other Miscellaneous complaints. 158
Total 677
15
Annual Report 2011-12
c. A comparative data as to complaints are as follows;
No. of Complaints 2009-10 2010-11 2011-12 Remarks
No. of Written Complaints 513 510 677 Increase in No. of
complaints by 167 Nos.
No. of minor Telephonic
Complaints 1051 510 523
Increase in No. of
complaints by 13 Nos.
d. MESCOM Consumer Grievance Redressal Forum consisting of the Chief
Engineer (Elecy), MESCOM, as the Chairman, the Superintending Engineer
(C&RP), and a representative of Consumers‟ Forum as the Members and the
Manager (Public Grievance) as the Co-ordinator is functioning in the
Corporate Office. During the year forum has received 6 complaints and all
complaints are heard and disposed off.
17. Personnel, Industrial relations and Human Resource Development:
A) Personnel Details:
The working strength of employees as on 31.03.2012 is placed category-wise as
under:
Cadres Mangalore Shimoga Total
S W V S W V S W V
A - Grade (Regular Employees)
145 95 50 73 60 13 218 155 63
A - Grade (Deputation Employees)
4 3 1 2 2 0 6 5 1
Total 149 98 51 75 62 13 224 160 64
B - Grade (Regular Employees)
147 78 69 136 78 58 283 156 127
B - Grade (Deputation Employees)
2 2 0 2 2 0 4 4 0
Total 149 80 69 138 80 58 287 160 127
C - Grade (Regular Employees)
1291 900 391 1106 824 282 2397 1724 673
C – Grade (Deputation Employees)
16 16 0 16 13 3 32 29 3
Total 1307 916 391 1122 837 285 2429 1753 676
D - Grade (Regular Employees)
1808 888 920 1769 992 777 3577 1880 1697
Company Grand Total 3413 1982 1431 3104 1971 1133 6517 3953 2564
S-Sanctioned, W-Working, V-Vacant
16
Mangalore Electricity Supply Company Limited
B) Industrial Relations:
The Company has maintained cordial relations with the employees and their Union. Employees‟ grievances if any are redressed at respective offices by conducting periodical meeting with the local office bearers of the union.
C) Training and Development Programmes during the year 2011-12:
a) To inculcate the requisite work-culture and to develop the orientation and skill essential for today‟s advancing technology and operating environment, sufficient and constant both external and internal training programmes are being imparted to the rank and file employees of the Company.
b) Also, training on basic Tax laws, Labour laws, information Technology, safety, energy savings, Financial Management, Managerial effectiveness and Customer relationship etc., have been given to the employees for the enrichment of their knowledge and betterment of their attitudes and behaviour.
c) During the year 2011-12, Company has organized several Internal Training Programmes and deputed the regular working staff of the Company to various external training programmes.
The details of training programme are as follows;
External Training Programmes:
During the year 2011-12 company has deputed various officers and staff to the different training programmes organized by different external agencies. The details of such external training programmes are as follows:
Total No. of External training Programmes : 32
Total Cost including programme fees : Rs. 702268
No. of persons participated : 95
Cost per Head (Average) : Rs. 7392
Internal Training Programme
Sl. No
Subject Participants No. of
Programmes Total Cost
(In Rs.)
1 Right to Imformation Act 30 1 3100
2 Best Practices in Commercial Loss Reduction 36 1 8342
3 Catalogue Management & Contract Management through e-Procurement
19 1 5489
4 M/S REC Sponsored national training programs 924 36 912000
5 MESCOM - Mandatory Training Programmes 112 3 622000
6 Refresher programme 159 6 100000
7 Safety 51 1 9000
TOTAL 1331 49 1659931
ABSTRACT
Total No.of Internal training Programmes 49
Total Cost including programme fees (Rs.) 1659931
No. of persons participated 1331
Cost per Head (Average) (Rs.) 1247
17
Annual Report 2011-12
D) Employees’ Welfare Schemes:
As a step towards strengthening the relationship between the employees and management, several welfare schemes have been initiated by the Company like :
(a) During the year 2011-12 the Company has contributed Rs. 5.00 lakhs to the KPTCL Sports Organisation, Bangalore and Rs. 3.00 lakhs to MESCOM Sports Committee for the Sports activities.
(b) To promote and encourage academic excellence, cash incentive of each Rs.2500/- (Rupees two thousand five hundred only) is being awarded to each of the meritorious children of the regular employees of the Company, who secure 90% and above marks in the SSLC/10th Standard and II PUC examination under the State/Central syllabus from the academic year 2007-08 and onwards. During the year 2011-12 this cash prize and appreciation letter has been awarded to 13 meritorious children.
(c) Birthday greetings cards are being issued to all regular employees on their respective birthday through heads of their respective office.
(d) A sum of Rs. 87,000/- was awarded to Mr. Roshan Ferrao, Junior Asst. and International Body Builder to participate in “ Mr. Universe International Body Building Championship-2011” held on 25.11.2011 to 27.11.2011 at Hamburg, Germany.
(e) Company Residential Quarters facilities wherever available are provided to the company employees.
18. Socio – Economic Projects
The Company has Contributed Rs. 5.00 lakhs as maintenance charges for 2 Lions in Pilikula Nisargadhama Zoo, the only geological park in the State, to meet social obligation.
19. Electrical Accidents during the Year 2011-12
The details of electrical accidents are presented as below:
Circles Name of the
Division Departmental Non-Departmental
Animal Grand Total Fatal Non-Fatal Fatal Non-Fatal
Mangalore
1. Mangalore-1 1 3 1 2 1 8
2. Mangalore-2 0 0 0 0 0 0
3. Bantwal 1 0 3 1 2 7
4. Puttur 0 0 1 2 2 5
Circle Total 2 3 5 5 5 20
Udupi
5. Udupi 0 3 10 2 6 21
6. Kundapura 0 2 3 0 0 5
Circle Total 0 5 13 2 6 26
Shimoga
7. Shimoga 0 15 4 2 23 44
8. Bhadravati 0 1 0 0 0 1
9. Sagar 0 7 0 1 19 27
10. Shikaripura 0 1 3 0 7 11
Circle Total 0 24 7 3 49 83
Chikmagalur
11. Chikmagalur 2 14 12 9 9 46
12. Kadur 1 3 2 1 8 15
Circle Total 3 17 14 10 17 61
GRAND TOTAL 5 49 39 20 77 190
18
Mangalore Electricity Supply Company Limited
20. Public relation and Communication Activities:
Highlights of Public Relations and Communication activities in MESCOM during
2011-12:
a) MESCOM has a separate wing for Public Relations and communication
headed by the Manager (Communications) reporting directly to the Managing
Director. The protocol management, guests and V.I.P visitors relationship
management and representing the Company in the society and public are the
main functions of this wing. In addition, the press and electronic media
relationships and public notifications etc., are the regular duties of this section.
b) During the year, 615 No. of Jana Samparka Sabhas, a programme of direct
interaction with the Public/consumers have been conducted at sub-division
and Section office levels. Under these Programmes the problems and
grievances of the consumers relating to electricity distribution have been dealt
with and solved and proper guidance and information are given to the general
public. In addition, the concerned Superintending Engineers (Ele) of O&M
Circles are conducting Consumer Meets at sub-divisional headquarters on
frequent intervals duly notifying the programme schedules in the leading news
papers. In these meetings also, the consumers complaints are addressed in
the presence of the local officers.
c) To educate the consumers regarding the usage of electricity devices and to
follow safety measures, wide publicity has been given through newspapers,
magazines, souvenirs and through T.V. channels. In addition, the pamphlets
highlighting the safety measures are also issued.
d) Participated in the direct interaction with public organized by local
T.V. channels in which, the issues and problems of the electricity consumers
have been attended to and measures were taken to handle and resolve the
consumers‟ queries and grievances.
e) The awareness of safety usage, electricity savings and other initiations of the
company are broadcasted through Radio FM channels, so as to communicate
and publicize among the general Public.
f) The contact Numbers of „24 Hours Service Stations‟, section officers,
sub-divisional officers and Divisional Engineers have been published in the
newspapers having wide circulation so that the consumers may contact for
their any problems in the electricity distribution systems and such other
problems including problems during monsoon season.
g) In order to have consumers‟ easy access to the company officials, and as a
“consumer friendly measure” the company has initiated printing and
distribution of cards consisting of telephone Nos. of Section, Sub-division,
Division offices and Vigilance to all LT-1, LT-2, LT-3 and LT-5 customers
across the company. These cards are distributed through Meter Readers of
the Sub-division level. Further, the Contact Nos. of sub-division and section
19
Annual Report 2011-12
officers have been published in the leading news papers so as to contact the
Company‟s O&M officials on emergencies.
h) “MESCOM KIRANA” being the internal Magazine of the company is published
quarterly covering various reports on different programmes, sports activities,
training and HR activities. The magazine gives ample opportunities to disclose
the talents of employees in writing poems, articles and to share their
collections. The magazine is being published continuously and circulated
among Company‟s various offices so as to reach the readers. Copies of the
magazine are submitted to all Directors, KERC Authorities, Energy
Department, Finance Department, D.C. Office, Kannada Development
Authority, and such other offices.
i) During the occasion of National Consumers‟ Day, meetings have been
arranged duly inviting the consumers and representatives of consumers
various groups. In these meetings the grievances are heard and steps are
being taken to solve the issues/problems. Also consumers‟ suggestions to
improve the systems are very well taken into consideration.
j) During the occasion of Vigilance Awareness Week, an interaction with the
consumers and office bearers of consumer forums has been held and
awareness on electrical safety and energy savings has been highlighted. And
the SCADA system has been apprised to the participants so that the system of
energy drawal and utilization of power is shown to them.
21. Consumers Friendly Measures :
Strengthening of Central Public Grievance cell in addition to other consumer
complaint cells.
Soujanya counters are working at the Sub Divisional level to redress the public
grievances.
Implementation of Geographical Information System to improve quality of
power supply.
Computerization of all revenue section and implementation of information
technology in day to day activities.
Electronic Clearing System has been introduced for payment of electricity bills.
37 Nos. of ATP machine have been installed in sub-divisional and prime
locations, they are working satisfactorily.
24 Hours Consumer Service Centres have been opened in major city and town
places.
22. Internal Audit in MESCOM :
The internal Audit Wing of MESCOM is headed by Controller (Internal Audit). He is
functioning independently and reporting directly to the Managing Director of the Company.
The functions of Revenue Audit, Voucher Audit, Cash Audit and day to day pre and post
20
Mangalore Electricity Supply Company Limited
audit functions and also on need basis special inspections are independently carried out
regularly by the Internal Audit Officers and Staff of the Company.
The Revenue Ledgers maintained in the Sub-divisions and Accounting Sections are
audited as per Action Plan by concerned Divisional Assistant Accounts Officers (IA) and
Senior Assistants (IA). Depending upon the requirement and availability, the services of Rtd.
Senior Assistants are also utilized during the period to audit the Revenue Ledgers of LT-2 &
LT-3 Tariff Category. Further, due to paucity of staff, the qualified Chartered Accountants
have been entrusted the work of ledger audit of LT-2 & LT-3 tariff Category for the year 2010
in Mangalore, Puttur, Bantwal, Shimogga and Bhadravathi Divisions. The works have been
awarded to them on contract basis duly inviting tender and observing corporate formalities.
Audit functions are being continuously carried out as per approved Action Plan.
23. Vigilance Activities in MESCOM
As per Electricity Act 2003, Vigilance Police Stations are formed in MESCOM. The
Superintendent of Police is the head of the Vigilance wing, who is technically assisted by
Executive Engineer (Ele) in the headquarters.
Assistant Executive Engineers / Police Inspectors are working in districts, under them
Sub Inspectors/ Head Constables/ Police Constables are working.
Under Section 126 and 135 as per Electricity Act 2003 Non cognizable and
Cognizable cases are booked in MESCOM Vigilance Police Stations.
Cases booked under Section 135 are admitted only in special Courts.
Progress for the year 2011-12 is furnished below:
(Rs. in Lakhs)
Sl. N
o
Nam
e o
f th
e P
olic
e S
tatio
n
No.o
f In
sta
l. c
he
cked
No.of Cases
Booked
To
tal case
s
To
tal u
nits p
illfe
red
Demand
Co
mp
oun
d r
ais
ed
To
tal a
mo
un
t
Recovery
To
tal R
ecove
ry
Vio
latio
n C
ases
Cog
. C
ase
Vio
latio
n c
ases
Cog
niz
ab
le c
ases
Vio
latio
n c
ases
Cog
niz
ab
le c
ases
Com
po
un
din
g
1 Mangalore 971 138 41 179 837008 65.56 8.96 2.43 76.95 27.31 8.70 2.33 38.35
2 Shimoga 1458 118 78 196 50808 60.57 3.64 2.88 67.09 21.66 3.51 2.68 27.85
3 Chickmaglore 1168 113 64 177 1363512 50.97 2.09 2.97 56.04 9.35 1.88 3.01 14.24
4 Udupi 3581 196 11 207 31889 30.84 3.31 0.66 34.82 20.53 3.33 0.66 24.50
TOTAL 7178 565 194 759 2283217 207.94 18.00 8.96 234.90 78.85 17.42 8.68 104.94
21
Annual Report 2011-12
24. Implementation of Right to Information Act 2005 in MESCOM :
1. The Details of PIOs, APIOs and respective Appellate Authorities have been
notified and updated in MESCOM website www.mesco.in under the caption
Right to Information Act in home page and the details are also made available
to the general Public in the respective offices.
2. 1200 Nos. of Applications including 3 Applications from BPL citizens have
been received seeking information under RTI Act 2005 across the company
during 2011-12, for which the fee of Rs. 11502/- has been collected towards
furnishing informations. During the year all the requests for information were
attended within the time limit. Further, 23 Nos. of Appeals have been received
and disposed off within time.
3. The training programme on the provisions and application of RTI Act 2005,
have been arranged for the benefit of PIOs and APIOs of the Company.
Further, in the regular training programmes, provisions of the Act have been
explained to the employees.
25. Particulars as per Companies (particulars of employees) Rules, 1975 and as
amended:
None of the employees of the Company was in receipt of remuneration amounting to
Rs. 24,00,000/- and above per annum or at the rate of Rs. 2,00,000/- and above per month
during the financial year under review.
26. Appointment of Cost Auditors:
The Ministry of Corporate Affairs, GoI vide No.52/62/CAB-2008 dated 4th Feb.2008
has directed the Cost Audit for the audit of cost accounts maintained by the Company in
respect of the financial year ending 31.03.2008 and for every financial year thereafter
continuously to be conducted by an Auditor with qualifications prescribed in section 233B (1)
of the Companies Act, 1956. Accordingly, M/s. Rao Murthy & Associates, Cost Accountants,
No.23/33, Serveyor‟s Street, Basavanagudi, Bangalore - 560004 have been appointed as the
Cost Auditors of the Company for the FY 2007-08 and onwards.
Further the details of Cost Audit Reports filed with GoI are as under:
Financial Year Due date to Submit
Report Date of Submission
of Report
2007-08 30.09.2008 30.09.2008
2008-09 30.09.2009 08.12.2009
2009-10 30.09.2010 29.09.2010
2010-11 30.09.2011 04.11.2011
2011-12 30.09.2012 Yet to be submitted.
22
Mangalore Electricity Supply Company Limited
27. Board of Directors
(A)
Sl. No. Shriyuths/Smt. Particulars
1. P. Ravikumar, IAS Chairman from 25.5.2011 to 04.09.2012
2. S. Selvakumar, IAS Chairman from 05.09.2012
3. Vijayanarasimha Managing Director from 23.05.2011to 04.10.2012
4. S. Sumanth Managing Director from 05.10.2012
5. H. Nagesh Director (Tech) from 06.06.2011
6. Dr. Aditi Raja Director from 24.9.08
7. T.Sham Bhatt, IAS Director from 2.8.2010 to 21.10.2011
8. N.S. Channappa Gowda IAS Director from 21.10.2011
9. P.K. Garg Director from 23.10.2010 to 29.12.2011
10. A.N.Sridhara Director from 7.3.2009 to 31.08.2012
11. H.R. Nagendra Director from 02.05.2011
12. D. Basavaraju Director from 29.12.2011
13. L.Ravi Director from 24.9.2008 to 21.10.2011
14. V. Venkatashiva Reddy Director from 21.10.2011
15. M.Nagaraj Director from 17.12.2008
16. P. Rama Amin Director from 15.12.2009
17. G.K. Shadaksharappa Director from 15.12.2009
The Board places on record its sincere appreciation and gratitude of the services
rendered by the outgoing Directors.
(B) Meetings of the Board and Board Sub-Committees
i) Board meetings 4
ii) Purchase Committee 5
iii) Audit Committee 2
(C) General Meetings:
The ninth Annual General Meeting of the Company was held at the Registered Office
of the Company on 22nd Oct 2011 for consideration and adoption of accounts.
28. Directors’ Responsibility Statement:
Pursuant to Section 217(2) (AA) of the Companies Act, 1956, the Directors wish to
state that to the best of their knowledge:
i. in the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material
departures;
23
Annual Report 2011-12
ii. accounting policies have been selected and applied consistently and made
judgments and estimates that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the company at the end of the financial
year and of the profit or loss of the company for that period;
iii. proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Companies
Act, 1956 for safeguarding the assets of the company and for preventing and
detecting fraud and other irregularities;
iv. Annual Accounts have been prepared for the Financial Year ended
March 31, 2012 on a going concern basis.
29. General:
The Board would like to place on record its appreciation of :
The Government of Karnataka, the Government of India, Central Electricity
Authority, Comptroller & Auditor General of India, Central Electricity Regulatory
Commission, Karnataka Electricity Regulatory Commission, Karnataka Power
Transmission Corporation Ltd., Karnataka Power Corporation Ltd., & Power
Company of Karnataka Ltd., for their assistance, guidance and Co-operation.
Financing agencies such as Rural Electrification Corporation, Power Finance
Corporation, Syndicate Bank, State Bank of Mysore, Canara Bank, Corporation
Bank, Vijaya Bank, State Bank of India, Punjab & Sindh Bank, UCO Bank,
Indian Bank, Axis Bank and Karnataka Bank for their financial support.
The media for publicity and creating awareness among the public.
The Statutory Auditors and Cost Auditors for their guidance and support.
All the agencies associated with the computerisation of billing.
The Employees, Employees‟ Union and other Associations of employees for
their co-operation and collective participation.
The suppliers, contractors and consultants for their Co-operation.
Sd/- Place : Mangalore (S. SELVAKUMAR) Date : 26.11.2012 CHAIRMAN
24
Mangalore Electricity Supply Company Limited
Addendum to Directors’ Report
Replies offered on the observations / comments of the Statutory Auditors on the accounts of the Company for the year 2011-12 are as follows:
Observations by Statutory Auditors Replies offered
I) The Company follows accounting policies
and procedures as laid down in Electricity
(Supply) Annual Accounts Rules, 1985
(hereinafter referred to as ESAAR), which
is in variance with the requirements of the
Accounting Standards referred to in sub-
section (3C) of section 211 of the
Companies Act, 1956. The Company has
informed us that ESAAR, 1985 is a
Statutory Regulation and in the event of a
variance in accounting treatment as
specified under ESAAR, 1985 and the
Accounting Standards, the Company has
accounted for the same as per ESAAR,
1985. Therefore, the Company has not
complied with the following Accounting
Standards:
1. Accounting Standard-2: The Company
has valued its inventories at Standard
Rate and not at cost or net realizable
value whichever is lower.
2. Accounting Standard-10: Items of fixed
assets retired from active use are stated
at their book value or standard rate
In accordance with the section 616(c) of
the Companies Act 1956, read with section
185 2(d) of the Electricity Act 2003,
MESCOM is following the Annual Accounts
Rules framed under section 69 of Electricity
Supply Act 1948, wherever there is
inconsistency between Companies Act
1956 & ESAAR 1985. Further, the
provisions of Electricity Act 2003 read with
rules made there under prevail wherever
the same are inconsistent with the
provisions of the Companies Act 1956 in
terms of section 174 of the Electricity Act
2003. As the Accounting Standards are
not sector specific and relying upon scope
of the Accounting Standards 4.2 which
reads “The Accounting Standards by their
very nature cannot and do not override the
local regulations which govern the
preparation and presentation of Financial
statements in the country”.
Further, AS-2 states that standard cost
may be used for convenience if the result
approximates the actual cost. Also
standard rates are regularly revised in the
light of changing conditions, which are
approximate to the actual cost. Hence the
Company is following standard cost where
the difference is negligible consistently.
Treatment of material cost variance has
been stated under para No. 1(g) to
significant accounting policies for the
period ended 31.03.2012.
There is no violation of AS-10 in view of the
provisions of section 616(c) of the
Company‟s Act 1956.
25
Annual Report 2011-12
Observations by Statutory Auditors Replies offered
depending on their re-usability. The
value is not tested in comparison to net
realizable value. Such assets are
disclosed as a part of current assets.
Also, value of capital works representing
consumers‟ contribution for assets
transferred to the Company is included
in the block of fixed assets under various
categories. These fixed assets are
recorded at standard costs for the assets
as on the date of transfer. This
accounting policy is not in consonance
with the Accounting Standard.
3. Accounting Standard-12: Government
grants relating to specific fixed assets
are not shown as a reduction from the
Gross value of the assets concerned
while arriving at their book value neither
is the grants treated as deferred income
and accounted in the Profit and Loss
Account on a systematic basis.
4. Accounting Standard-22: The company
has not accounted deferred tax assets /
liabilities as required by Accounting
Standard-22.
ESAAR reads as under-
2.35- Consumers‟ contributions, subsidies
and grants towards cost of capital assets
shall not be treated as reduction in the
“cost” but as a capital receipt to be credited
to Capital Reserve Account.
AS-22: The Company has not recognized
Deferred Tax Asset / Deferred Tax
Liabilities so far since there is no such
requirement under ESAAR, 1985.
II) The Title deeds of immovable properties
in the erstwhile name of the establishment,
which MESCOM has succeeded, are yet to
be transferred in the name of the
Company. The charge created on assets
of the Company will not be complete to the
extent to which documentation in respect of
properties for which charge has been
created continues to be held in the name of
erstwhile establishment.
Out of a total of 139 landed assets
(excluding leased assets), MESCOM has
obtained documents for 133 of them. The
process of transfer of documentations in
the name of MESCOM in respect of
balance 6 No. of landed assets is in
progress and will be completed in the
coming years.
26
Mangalore Electricity Supply Company Limited
Observations by Statutory Auditors Replies offered
III) The Company has an internal audit
system. However, considering the size of
the Company and volume of its business,
we are of the opinion that the present
system requires to be strengthened and
audit department needs to be adequately
staffed. The audit system needs to cover
technical audit, materials, inventory, stores
and compliance and adherence to various
provisions of Tax Laws and Labour Laws in
particular.
Company has an Internal Audit Wing
working in each accounting division to
verify and report any shortcoming
regarding cash, revenue, work accounts,
cost register, material audit, inventory and
stock records. Further at Company‟s
Corporate Office, Controller (Internal Audit)
is monitoring and supervising the work of
Internal Audit Wing of each Division and
rendering periodical reports to
management regarding any shortcomings
observed. Company has an „in-built‟
system of internal control for each activity.
IV) The Balances of Sundry Debtors,
Sundry Creditors, Loans and Advances,
Other Receivables and other debit / credit
balances including that of other ESCOM‟s
and KPTCL are subject to confirmations
and reconciliations. The effect of the
adjustment arising from reconciliation and
settlement of old dues and possible loss
which may arise on account of non
recovery or partial recovery of such dues is
not ascertained. Thus we are unable to
comment upon the impact thereof on the
accounts and profit for the period.
As disclosed under note 4.1.2.5, 38 & 39,
the balances in respect of Sundry Debtors,
Sundry Creditors, Loans and Advances to
Suppliers and other borrowings are subject
to confirmation. However action has been
taken to reconcile the balances of inter-
company transactions as well as power
purchase dues.
V) The Control account balances as
reflected by the General Ledger at
Divisions and Subsidiary Registers at Sub-
Divisions in the matter of Consumer
Security Deposits and Meter Security
Deposits are not fully reconciled.
During the balance sheet restructuring plan
III, a portion of meter security deposit was
capitalized as per the direction of the Govt.
Though the amount was capitalized, the
amount is still outstanding in the
consumers‟ ledger account. But the meter
security deposit as per accounts was
reduced to that extent in the accounts of
the Company, leading to difference
27
Annual Report 2011-12
Observations by Statutory Auditors Replies offered
between the balance as per consumers‟
ledger account maintained at Divisions and
as per accounts of the Corporate Office.
Further, the deposit registers are being
maintained at Sub-divisional / Section
levels and the accounts are maintained at
divisional levels. The Company has made
efforts to reconcile the balances between
the deposit registers and accounts during
the financial year. Since the task is
voluminous efforts are being made to
complete the same.
VI) The Company has not furnished in the
notes to accounts, the details with regard to
Micro and Small Scale Business
Enterprises, to whom the Company owes
dues, which are outstanding for more than
45 days as at March 31st, 2012. This
information is required to be disclosed
under the Micro, Small and Medium
Enterprises Development Act, 2006.
The suppliers or service providers coming
under the MSMED Act, 2006 neither
claimed any interest nor disclosed the facts
in their invoices or bills. Further, the
Company has not received any
communication from those in respect of
whom disclosures are to be made under
the said Act.
VII) The Fixed Asset register maintained by
the company does not show full particulars
such as asset identification number and its
situation.
Owing to the peculiar nature of power
distribution business, it has not been
possible to allot asset identification
numbers to all assets of the Company.
However, Fixed Asset Registers
maintained at the Divisional Offices give
particulars about the nature of assets, year
of installation etc.
VIII) In the absence of adequate report on
physical verification of Fixed Assets, we
are unable to comment about the
reasonableness of intervals at which Fixed
Assets have been verified and accounting
of discrepancies noticed thereon if any.
The Company carries out physical
verification of assets situated at power
station level. Other assets like poles and
transmission lines could not be physically
verified since it is spread throughout
service area.
28
Mangalore Electricity Supply Company Limited
Observations by Statutory Auditors Replies offered
IX) The energy balancing results
incorporated in FY 2010-11 pertaining to
FY 2008-09, 09-10, 10-11 has been again
revised in the current year. The difference
is accounted along with provisional energy
balancing result for the year 2011-12 based
on joint reconciliation carried out by all the
ESCOMs at LDC and is subject to
confirmation by State Load Dispatch
Centre /KPTCL.
Factual.
X) In our opinion the company does not
have an Internal Audit system
commensurate with the size and nature of
its business. Internal Audit system needs
to be strengthened in terms of adequate
staffing and area of coverage as mentioned
in Para 4(ii) of our Audit Report.
The Company will enhance the scope of
activities covered by Internal Audit to
extend coverage for compliance and
adherence to tax issues as well. The
framework of the audit plan is under
preparation and is actively pursued upon.
Sd/- Date : 26.11.2012 (S. SELVA KUMAR) Place : Mangalore Chairman
29
Annual Report 2011-12
AUDITORS’ REPORT
TO THE MEMBERS OF MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED, MANGALORE
1. We have audited the attached Balance Sheet of Mangalore Electricity Supply Company Limited (MESCOM), Mangalore, as at 31st March 2012 and the Profit and Loss Account and also the Cash Flow Statement for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Company‟s Management. Our responsibility is to express an opinion on these financial statements based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includes, examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements. We believe that our audit provides a reasonable basis for our opinion.
The Mangalore Electricity Supply Company Limited is a Government Company within the meaning of Section 617 of the Companies Act, 1956, formed to take over the Assets and Liabilities of certain divisions of Karnataka Power Transmission Corporation Limited (KPTCL) engaged in distribution of power. The Company has adopted the accounting policies and procedures followed by KPTCL and is consistently following the accounting system laid down in the Electricity (Supply) Annual Accounts Rules, 1985 framed under the Electricity (Supply) Act, 1948 (54 of 1948) (now repealed) by virtue of clause (d) of sub-section 2 of section 185 of the Electricity Act, 2003.
3. As required by the Companies (Auditor‟ Report) Order, 2003, as amended by the Companies (Auditors‟ Report) (Amendment) Order, 2004 (together the „Order‟) issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956, (“the Act”) and on the basis of such checks we considered appropriate, and according to the information and explanations given to us, we give in the Annexure a statement on the matters specified in paragraph 4 and 5 of the said Order to the extent applicable to the Company.
Accordingly, the Company had prepared its Balance Sheet as at 31-03-2012 and the Statement of Profit and Loss for the year ended on that date together with Cash Flow Statement which was approved by the Board of Directors of the Company on 24th of July, 2012 and was forwarded to us for our Report thereon and we had issued our Report thereon on the following day. Thereafter, the accounts of the Company has been reviewed by Comptroller and Auditor General of India as mentioned in Note No. 41 of Notes on Accounts. The Comptroller and Auditor General of India has raised certain issues as far as the accounts are concerned. The Board of Directors of the Company have taken note of the observations and opted to revise the accounts of the Company in the light of aforesaid observations. The said revision has resulted in decrease in share capital by Rs. 0.03 Lakhs, increase in share deposit by Rs.0.03 lakhs, increase in reserves & surplus by Rs. 100.54 lakhs, increase in long term liabilities by Rs. 4.18 lakhs, decrease in short term liabilities by Rs. 4.18 lakhs, decrease in trade payables by Rs. 36.17 lakhs, decrease in other current liabilities by Rs. 468.03 lakhs.
30
Mangalore Electricity Supply Company Limited
Further, tangible assets stands increased by Rs. 74.14 lakhs, other non-current assets decreased by Rs. 25.15 lakhs, trade receivables decreased by Rs. 23.05 lakhs, other current assets decreased by Rs. 429.60 lakhs and total assets and liabilities stand decreased by Rs 403.66 lakhs.
4. Further to our comments referred to in paragraph 3 above, we report that:
(a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.
(c) The Balance Sheet and Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of account.
(d) The company follows accounting policies and procedures as laid down in Electricity (Supply) Annual Accounts Rules, 1985 (hereinafter referred to as ESAAR), which is in variance with the requirements of the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956. The Company has informed us that ESAAR, 1985 is a Statutory Regulation and in the event of a variance in accounting treatment as specified under ESAAR, 1985 and the Accounting Standards, the Company has accounted for the same as per ESAAR, 1985. Therefore, the Company has not complied with the following Accounting Standards:
1. Accounting Standard-2: The Company has valued its inventories at Standard Rate and not at cost or net realizable value whichever is lower.
2. Accounting Standard – 10: Items of fixed assets retired from active use are stated at their book value or standard rate depending on their re-usability. The value is not tested in comparison to net realizable value. Such assets are disclosed as a part of current assets. Also, value of capital works representing consumers contribution for assets transferred to the Company is included in the block of fixed assets under various categories. These fixed assets are recorded at standard costs for the assets as on the date of transfer. This accounting policy is not in consonance with the Accounting Standard.
3. Accounting Standard – 12: Government grants relating to specific fixed assets are not shown as a reduction from the Gross Value of the assets concerned while arriving at their book value neither is the grants treated as deferred income and accounted in the Profit and Loss Account on a systematic basis.
4. Accounting Standard – 22: The Company has not accounted deferred tax assets / liabilities as required by Accounting Standard – 22.
The effect of the above on the financial statements is not ascertainable.
Further,
i. The Title deeds of immovable properties in the erstwhile name of the establishment, which MESCOM has succeeded, are yet to be transferred in the name of the Company. The charge created on assets of the Company will not be complete to the extent to which documentation in respect of properties
31
Annual Report 2011-12
for which charge has been created continues to be held in the name of erstwhile establishment.
ii. The Company has an internal audit system. However, considering the size of the Company and volume of its business, we are of the opinion that the present system requires to be strengthened and audit department needs to be adequately staffed. The audit system needs to cover technical audit, materials, inventory, stores and compliance and adherence to various provisions of Tax Laws and Labour Laws in particular.
iii. The Balance of Sundry Debtors, Sundry Creditors, Loans and Advances, Other Receivables and other debit / credit balances including that of other ESCOMs' and KPTCL are subject to confirmations and reconciliations. The effect of the adjustment arising from reconciliation and settlement of old dues and possible loss which may arise on account of non recovery or partial recovery of such dues is not ascertained. Thus we are unable to comment upon the impact thereof on the accounts and profit for the period.
iv. The Control account balances as reflected by the General Ledger at Divisions and Subsidiary Registers at sub-divisions in the matter of Consumer Security Deposits and Meter Security Deposits are not fully reconciled.
v. The company has not furnished in the notes to accounts, the details with regard to Micro and small scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2012. This information is required to be disclosed under the Micro, -Small and Medium Enterprises Development Act, 2006.
e) As per Notification No.: GSR 829(E) dated 21-10-2003, Government Companies are exempted from the provisions of clause 274(1)(g) of the Companies Act, 1956.
f) Subject to our comments in para 4(d) above, the aggregate effect of which on the Profit and on the Assets and Liabilities is not ascertained, and on the basis of the fact that the accounts are prepared as per ESAAR, in our opinion and to the best of our information and according to the explanations given to us, the said financial statements, read together with the notes thereon and attached thereto, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
i) In the case of the Balance Sheet of the state of affairs of the Company as at 31st March, 2012:
ii) In the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and
iii) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.
For GANESH & SUDHIR
Chartered Accountants,
(Firm Regn No. 000866S)
Sd/-
Place: Mangalore (GIRIDHAR KAMATH)
Date : 07-09-2012 Partner (M.M. 203199)
32
Mangalore Electricity Supply Company Limited
ANNEXURE TO THE AUDITORS’ REPORT
(Referred to in Paragraph 3 of our Report of even date)
(i) (a) The Fixed Asset Register maintained by the Company does not show full particulars such as asset identification number and its situation.
(b) In the absence of adequate report on physical verification of Fixed Assets, we are unable to comment about the reasonableness of intervals at which Fixed Assets have been verified and accounting of discrepancies noticed thereon if any.
(c) According to the information and explanations given to us, the Company has not disposed off a substantial part of its fixed assets during the year.
(ii) a) As informed and explained to us physical verification of inventory has been conducted at reasonable intervals by the management.
b) In our opinion, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and nature of its business.
c) In our opinion and as explained and informed to us, the Company is maintaining proper records of inventory. Material discrepancies noticed on physical verification have been properly dealt with in the books of account.
(iii) According to the information and explanation given to us, the company has neither granted nor taken any loan from Companies, firms or other parties covered in the register maintained U/s 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to the purchase of inventory and fixed assets and for the sale of electricity. According to the information and explanations given to us, the purchase price and sale of electricity is regulated by Karnataka Electricity Regulatory Commission. The Company arranges payment to the power suppliers based on the notional share basis fixed and notified by Govt. of Karnataka from time to time. Based on the energy balancing report furnished by Load Dispatch Centre (LDC) for the year 2008-09, 2009-10 and 2010-11, the results have been incorporated in the books of the Company during the year 2010-11. This has again been revised in the current year. The difference is accounted along with the provisional energy balancing result for the year 2011-12 based on joint reconciliation carried out by all the ESCOMs at LDC and is subject to confirmation by State Load Dispatch Centre/KPTCL.
(v) As informed and explained to us the Company has not entered into any transactions that needs to be entered into the register in pursuance of section 301 of the Act.
(vi) In our opinion and according to information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of section 58A of the Companies Act, 1956 and the rules framed thereunder. Therefore the provisions of clause (vi) of
33
Annual Report 2011-12
paragraph 4 of the aforesaid order are not applicable to the Company for the financial year under report.
(vii) In our opinion, the company does not have an Internal Audit System commensurate with the size and nature of its business. Internal Audit system needs to be strengthened in terms of adequate staffing and area of coverage as mentioned in Para 4(ii) of our Audit Report.
(viii) We have broadly reviewed the books of account maintained by the company pursuant to the rules made by the central Government for maintenance of cost records u/s 209(1)(d) of the Companies Act, 1956 in respect of distribution of electricity and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have not, however, made a detailed examination of the said records.
(ix) a) According to the books and records as produced before us and examined by us, in accordance with generally accepted auditing practices in India and also based on Management representations, undisputed statutory dues have been regularly deposited by the Company during the year with appropriate authorities. According to the information and explanations given to us, there were no undisputed amounts payable in respect of provident fund, employee state insurance, income tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess and other statutory dues outstanding as at March 31, 2012 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us and the records examined by us, the particulars of EPF dues which has not been deposited on account of a dispute pending are as under:
Name of the
Statute
Nature of the disputed dues
Amount
(Rs.)
Payments made by the company /
adjustments made by the dept. (Rs.)
Period to which the amount relates
Forum where disputes are
pending
EPF Act
EPF of contract employees –
error in calculation of
demand
4,44,06,265 1,77,63,000 2006-07
Case remanded back to PF
Office,
Mangalore
(x) The company does not have accumulated losses at the end of the financial year. The company has not incurred cash losses during the financial year covered by the audit, nor in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations given to us, there is no default in repayment of loan dues by the Company.
(xii) According to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any special statute as referred under clause (xiii) of paragraph 4 of the Order are not applicable to the Company.
34
Mangalore Electricity Supply Company Limited
(xiv) In our opinion and according to the information and explanations given to us, the Company is not a dealer or trader in securities.
(xv) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from banks or financial institutions.
(xvi) In our opinion and according to the information and explanations given to us, the term loans outstanding at the beginning of the year and those raised during the year have been applied for the purposes for which they were raised.
(xvii) According to the information and explanations given to us, and on an overall examination of the Balance Sheet of the Company, funds raised on short term basis have, prima facie, not been used during the year for long term investment.
(xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.
(xix) The Company has not raised any debentures during the year.
(xx) The Company has not raised any monies by way of public issues during the year. However, a loan amount of Rs. 273.03 Lakhs raised from Govt. of Karnataka during the year 2010-11 (as detailed in Note 4.1.2.6) has been converted into Equity.
(xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no material fraud on or by the Company was noticed or reported during the year, except in the case of theft of electricity reported by the vigilance department of the Company, the amount of which is not quantified.
For GANESH & SUDHIR
Chartered Accountants,
(Firm Regn No. 000866S)
Sd/-
Place: Mangalore GIRIDHAR KAMATH
Date : 07-09-2012 Partner (M.M. 203199)
35
Annual Report 2011-12
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER
SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF
MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED, MANGALORE FOR THE
YEAR ENDED 31 MARCH 2012.
No. Pr. AG (ERSA)/PS/2012-13/K02-10/183, Dated: 20/21.9.2012
The preparation of financial statements of MANGALORE ELECTRICITY SUPPLY
COMPANY LIMITED, MANGALORE for the year ended 31st MARCH 2012 in
accordance with the financial reporting framework prescribed under 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 07 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 “MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED,
MANGALORE” for the year ended 31st 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. In view of the
revisions made in the financial statements by the management, as a result of my audit
observations highlighted during supplementary audit as indicated in the Note No.41
forming part of Accounts, I have no further comments to offer upon or supplement to the
Statutory Auditors‟ Report under section 619(4) of the Companies Act, 1956.
For and on behalf of the Comptroller & Auditor General of India Sd/- (ANITA PATTANAYAK) Bangalore Principal Accountant General Dated: 20 September 2012 (Economic & Revenue Sector Audit) Karnataka, Bangalore
36
Mangalore Electricity Supply Company Limited
BALANCE SHEET AS AT 31ST MARCH 2012
( Rs. in Lakhs)
Sl. No.
Particulars Note No
Account Code
As at 31-03-2012 As at 31-03-2011
I EQUITY AND LIABILITIES 1 Shareholders' Funds
a) Share Capital 1 52.301 52.302
17206.99 15733.99
b) Reserves and Surplus 2 55 to 58 38248.48 55455.47 34000.83 49734.82
2 Share Deposit (Shares pending Allotment)
3 52.303 0.03 -
Sub-Total 55455.50 49734.82 3 Non-Current Liabilities a) Long-term borrowings 4 53 to 54 31709.30 31126.58 b) Deferred Tax Liabilities (Net) 5 - - - c) Other long term liabilities 6 42 to 48 99973.14 81319.24 d) Long-term Provisions 7 44 2246.63 2163.39
Sub-Total 133929.07 114609.21 4 Current Liabilities a) Short-term borrowings 8 50 9062.61 4100.09 b) Trade payables 9 41 36068.83 28995.17
c) Other current liabilities 10 42 to 46
51, 53, 54 33364.72 29767.40
d) Short-term provisions 11 46 698.73 375.01 Sub-Total 79194.89 63237.67
TOTAL 268579.46 227581.70 II Assets 1 Non-Current assets a) Fixed assets
(i) Tangible Assets 12 10 & 12 92699.46 84335.22 (ii) Intangible assets 13 - - - (iii) Capital work-in-progress 14 14,15 &17 7223.73
9320.77
(iv) Intangible assets under development
15 - - -
b) Non-Current investments 16 20.291 251.00 251.00 c) Deferred Tax Assets(net) 17 - - -
d) Long term loans and advances
18 28.935 256.60 242.94
e) Other non-current assets 19 28 & 16.2 87024.06
71502.57 f) Deferred Costs 20 - - - Sub-Total 187454.85 165652.50
2 Current assets a) Current Investments 21 - - - b) Inventories 22 22 3250.29 1826.10
c) Trade receivables 23 23, 47.607 &
47.609 35120.89 28885.18
d) Cash and cash equivalents 24 20 & 24 3739.69 2799.58
e) Short-term loans and advances
25 25, 26, 27 &
28.913 2182.65 2966.38
f) Other current assets 26 23.4 & 28 36831.09 25451.96 Sub-Total 81124.61 61929.20 TOTAL 268579.46 227581.70 Significant Accounting Policies and Notes to Accounts form part of the Accounts.
Sd/- (K. JAYARAMA ALVA)
Financial Advisor
Sd/- (H. NAGESH)
Director (Tech) In terms of our Report of even date
for GANESH & SUDHIR
Sd/- (VIJAYANARASIMHA)
Managing Director
Place : Mangalore Date : 07.09.2012
Chartered Accountants Firm Reg. No: 000866 S
Sd/- GIRIDHAR KAMATH
Partner Membership No. 203199
37
Annual Report 2011-12
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED 31ST MARCH 2012
(Rs. in Lakhs)
Sl. No.
Particulars Note No.
Account Code
For the year 2011-12
For the year 2010-11
I Revenue from operations (Distribution of Power)
27 61, 62 & 83
154530.56 140047.62
II Other Income 28 61.905
62 & 65
16359.41 7811.32
III Total Revenue (I+II) 170889.97 147858.94
IV Expenses
Purchase of Power 29 70 127625.60 110359.70
Employee Benefits Expense 30 75 18779.44 17305.02
Finance Costs 31 78 & 80 11917.55 9379.18
Depreciation and amortization expenses 32 77 & 83.6 6130.97 5093.62
Other Expenses 33 74, 76, 79 & 83
5580.50 5489.40
Total Expenses 170034.06 147626.92
V PROFIT BEFORE EXCEPTIONAL AND EXTRAORDINARY ITEMS AND TAX (III-IV)
855.91 232.02
VI Exceptional Items - -
VII PROFIT BEFORE EXTRA ORDINARY ITEMS AND TAX (V-VI)
855.91 232.02
VIII Extraordinary items - -
IX PROFIT BEFORE TAX (VII-VIII) 855.91 232.02
X TAX EXPENSE
Current Tax 81.1 214.72 61.92
Deferred Tax - -
XI Profit (Loss) for the period from continuing operations (IX-X)
641.19 170.10
XII Profit (Loss) from discontinuing operations - -
XIII Tax expense of discontinuing operations - -
XIV Profit (Loss) from discontinuing operations (after Taxes) (XII-XIII)
- -
XV Profit (Loss) for the period (XI+/-XIV) 641.19 170.10
XVI Earnings per equity share (in Rs)
Basic and diluted 0.40 0.12
Significant Accounting Policies and Notes to Accounts form part of the Accounts.
Sd/- (K. JAYARAMA ALVA)
Financial Advisor
Sd/- (H. NAGESH)
Director (Tech)
In terms of our Report of even date for GANESH & SUDHIR
Sd/- (VIJAYANARASIMHA)
Managing Director
Place : Mangalore Date : 07.09.2012
Chartered Accountants Firm Reg. No: 000866 S
Sd/- GIRIDHAR KAMATH
Partner Membership No. 203199
38
Mangalore Electricity Supply Company Limited
CASH FLOW STATEMENT FOR THE YEAR ENDING 31.3.2012
Rs. in Lakhs
Sl. No.
Particulars 31.03.2012 31.03.2011
Cash flows from operating activities
Net profit before taxation and extraordinary items 855.91 232.03 Adjustment for: Depreciation 6130.97 5093.66 Foreign exchange loss - - Interest income 104.41 53.54 Dividend income - - Interest expense 11917.55 9379.18
Operating profit before working capital changes 18800.02 14651.33 (increase)/Decrease in trade receivables -6235.71 -999.89 (increase)/Decrease in loans and advances 783.72 296.42 (increase)/Decrease in other current assets -11379.12 -11540.39 (increase)/Decrease in inventories -1424.19 -67.43 (increase)/Decrease in short term borrowings 4962.52 442.12 (increase)/Decrease in trade payables 7073.66 -8142.68 (increase)/Decrease in provisions 323.72 -48.46 (increase)/Decrease in current liabilities 3597.32 -2298.08 -6385.80 -26446.11 Cash generated from operations 16501.94 -11794.78
Income taxes paid 1106.62 1106.54 Cash flow before extraordinary item 15395.32 -12901.32
Extraordinary items (specifying nature) - - Net cash from operating activities (A) 15395.32 -12901.32 Cash flows from investing activities Purchase of tangible fixed assets -14495.21 -17482.38 (Increase)/ Decrease in Capital Work in Progress 2097.04 -127.54 (Increase)/ Decrease in other Non-current Assets - -
Increase/ (Decrease) in other long term Liabilities 18653.90 44912.49 Increase/ (Decrease) in other long term Provisions 83.24 -138.25 Purchase of intangible fixed assets 0.00 0.00 Purchase of long term investments 0.00 0.00 (increase)/Decrease in other non-current assets -14629.60 -15711.93 (increase)/Decrease in other long term receivables -13.65 -9.36 Interest received 104.41 53.54 Net cash from investing activities (B) -8199.87 11496.57 Cash flows from financing activities Proceeds from issuance of share capital 1473.03 2500.00 Increase/(Decrease) in other long term borrowings 582.72 3034.03
Contributions/ Grants and subsidies towards Cost of Capital Assets 3606.46 3751.90
Interest paid -11917.55 -9379.18 Dividends paid 0.00 0.00 Dividend distribution tax 0.00 0.00 Proceeds from ESOPs 0.00 0.00 Net cash used in financing activities (C) -6255.34 -93.25
Net increase in cash and cash equivalents (A) + (B) + (C) 940.11 -1498.00
Cash and cash equivalents at beginning of period 2799.58 4297.58
Cash and cash equivalents at end of period 3739.69 2799.58
Sd/- (K. JAYARAMA ALVA)
Financial Advisor
Sd/- (H. NAGESH)
Director (Tech)
In terms of our Report of even date for GANESH & SUDHIR
Sd/- (VIJAYANARASIMHA)
Managing Director
Place : Mangalore Date : 07.09.2012
Chartered Accountants Firm Reg. No: 000866 S
Sd/- GIRIDHAR KAMATH
Partner Membership No. 203199
39
Annual Report 2011-12
SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS
I) SIGNIFICANT ACCOUNTING POLICIES FOR THE PERIOD ENDED 31-03-2012.
a) Basis of preparation of financial statements:
The Company is registered under the provisions of Companies Act, 1956. The
Company is a distribution licensee under Section 14 of the Electricity Act,
2003. The provisions of the Electricity Act, 2003 read with the rules made
there under prevails wherever the same are inconsistent with the provisions of
the Companies Act, 1956 in terms of Section 174 of the Electricity Act, 2003.
The Accounts of the company have been prepared on the basis of going
concern concept and under the historical cost convention. The Company
adopts accrual basis in preparation of its accounts to comply with all material
aspects of Generally Accepted Accounting Principles (GAAP) and the
accounting standards issued by the Companies (Accounting Standard) Rules,
2006 as per notification No. G.S.R 739 (E) dated 7th December, 2006.
However, rebate for early payment and interest on delayed payment to power
producers are accounted for as intimated by them. Further, in certain areas
where different accounting treatment has been prescribed under GAAP and
Electricity (Supply) (Annual Accounts) Rules 1985 (ESAAR, 1985) for an item
of income/expenditure or Assets/Liabilities, the accounting treatment
prescribed under ESAAR 1985 has been adopted as per Section 174 of the
Electricity Act, 2003. Further, assets and liabilities created under applicable
electricity laws continue to be depicted under appropriate heads in the Balance
Sheet.
b) Use of Estimates:
In the preparation of the Financial Statements, the Company has made
estimates and assumptions that affect the reported amounts of assets and
liabilities on the date of the financial statements and the reported amounts of
revenues and expenses during the reported period to conform with the
generally accepted accounting principles. Differences between actual results
and estimates are recognized in the period in which results are known /
materialized.
c) Fixed Assets:
i) Fixed assets which are acquired or constructed are recorded in the books
of accounts and disclosed in annual accounts at actual cost of acquisition/
construction or at standard rate, as the case may be, less accumulated
depreciation. Cost of acquisition is inclusive of freight, duties & taxes,
levies, borrowing costs and all incidentals attributable to bringing the asset
to its working condition.
ii) In case of fixed assets, for new projects / extension, the related expenses
and interest cost up to the date of commissioning attributable to such
project / expansion are capitalized.
iii) Fixed Assets other than those classified as „Furniture & Fixture‟ and
„Office Equipments‟, costing individually up to Rs 500 are written off to
Profit and Loss Account during the year.
40
Mangalore Electricity Supply Company Limited
iv) Assets transferred by M/s Karnataka Power Transmission Corporation Limited (KPTCL) have been stated at the cost of transfer indicated by KPTCL in transfer document.
v) Contributions, grants and subsidies towards cost of Fixed Assets have not been reduced from the cost of assets but have been shown separately under Capital Reserve Head in the Balance Sheet. The depreciation pertaining to such Fixed Assets is fully charged to Profit and Loss account. The ESAAR, 1985 provides for accounting of such grants separately and not to reduce it from the value of respective Fixed Assets.
d) Impairment of Assets:
The Company at the Balance Sheet date assesses individual fixed assets and group of assets constituting “Cash Generating Units” (CGU) for impairment, if circumstances indicate a possibility or warrant such assessment. If carrying cost is higher than recoverable amount provision will be made for impairment of state of assets or CGU.
e) Depreciation:
i) Depreciation on all assets (except lease hold land) is provided on straight line method over the useful life of the asset at the rates approved in KERC Tariff Order 2009 dated 25th November 2009. Depreciation on released assets re-issued to works and categorized as assets, is charged at the rates prescribed vide said regulation considering the WDV as the base value. This system is followed consistently.
ii) In respect of Lease hold land where entire lease amount is paid in advance, depreciation is charged every year by an fixed amount which is arrived by dividing the total Lease cost by the number of years of lease so that 100% of the leased cost of land is recovered over the lease period.
iii) Depreciation on all assets excluding land is provided up to 90% of the original cost. Depreciation is not charged on those assets for which the accumulated depreciation as at the Balance Sheet date is 90% of the original cost.
iv) Depreciation on additions of assets is provided on pro-rata basis from the following month in which the asset is available for use. Depreciation on disposed assets / assets withdrawn from use is provided up to the month in which the asset is disposed / withdrawn.
f) Capital Work in Progress:
Material issued to Capital Work is valued at a price which is determined on the basis of previous purchases and prevailing market rates, which is stated as Common Standard Rates for all ESCOMs jointly published by all the ESCOMs in the state of Karnataka.
g) Inventory valuation:
Inventories are valued at Standard Rate, which is determined by MESCOM from time to time based on previous purchase price and prevailing market rates (published as O & M Schedule of Rates). The difference in actual cost of material received and standard issue rate represents “Material Cost Variance”. At the end of the year debit balance if any, under Material Cost Variance is charged to Profit and Loss Account and credit balance if any is transferred to reserve account called “Reserve for Material Cost Variance”.
41
Annual Report 2011-12
Dismantled Assets are valued at written down value of assets. Stock of non-
reusable or reusable materials for which facilities for repair do not exist are
valued at scrap rates indicated in the schedule of rates.
h) Revenue Recognition:
Sale of Electricity is accounted, based on tariff rates approved by the
Karnataka Electricity Regulatory Commission (KERC). Revenue from sale of
energy is accounted on accrual basis. Revenue is reduced by unbilled
revenue of previous year included in current year‟s revenue. It is increased by
the unbilled revenue of current year and revenue due from consumers whose
ledger accounts are yet to be opened.
i) Subsidy from Government of Karnataka:
GoK vide notification no. EN 55 PSR 2008 dtd 14.09.2008 has introduced a
scheme of free power supply to IP sets having capacity of upto 10 HP
(inclusive of 10 HP). Further GoK is also providing free power supply to
Bhagyajyothi and Kutira jyothi consumers having monthly consumption upto
18 units.
In accordance with the above said notification MESCOM has been providing
free power to IP sets & BJ/KJ consumers and the cost thus involved in
providing free power supply to those consumers is making good by GoK. The
difference between the amount of free power supply to BJ/KJ and IP set
consumers and the actual amount received from the Govt. has been
accounted as receivable from the GoK.
The Hon‟ble KERC in respect of Review Petition No. 04/2010 filed by GoK has
ordered for the payment of trued-up subsidy amount to ESCOMs in 36 monthly
installments. Accordingly a sum of Rs. 13287.00 lakhs was due to MESCOM.
Out of which Rs. 8377.00 lakhs has been received upto 31.03.2012 and the
balance was accounted as receivable from the GoK.
j) Regulatory Asset:
In accordance with tariff order of Hon‟ble Karnataka Electricity Regulatory
Commission, dated 7th December 2010 page No. 80, MESCOM has treated
Rs. 7593 lakhs as regulatory assets (deferred revenue expenditure) for the FY
2011. Out of the said amount the Hon‟ble KERC, in the said order has
ordered to recover the regulatory asset at the rate of Rs. 12 paise per unit
during FY 2012. Accordingly Rs. 4227.08 lakhs has been recovered by
reducing the revenue and regulatory asset during FY 2012 at the rate of
12 paise per unit for 3522.57 MU sold.
The remaining amount of Rs. 3365.92 lakhs will be recovered in FY 2013.
k) Employee Benefits:
i) All the employees of the Company are on deputation from KPTCL.
ii) In respect of Pension and Gratuity, provision for contribution to
KPTCL/ESCOMs‟ Pension & Gratuity Trust is made on the formula
evolved by the Trust based on the actuarial valuation undertaken by
KPTCL/ESCOMs‟ Pension & Gratuity Trust. The contribution towards
pension and gratuity is accounted at the rates noted below:-
Pension - 29.11% of Basic Pay + Dearness Pay +Dearness Allowance
Gratuity - 3.34% of Basic Pay + Dearness Pay
42
Mangalore Electricity Supply Company Limited
For those employees who have joined MESCOM on or after 1.4.2006, the
contributory pension scheme is applicable wherein 10% of the Basic Pay +
Dearness Pay + Dearness Allowance are contributed to the pension fund with
matching contribution of employees.
iii) Provision for ELS & FBF:
Provision towards Earned Leave Encashment and Family Benefit Fund has
been created based on the Actuarial Valuation carried out as on 31.03.2012.
l) Provision for Bad and Doubtful Debts:
Provisions for Bad and Doubtful Debts is made in the accounting divisions at
4% (as per para 4.2 of Annexure V of ESAAR, 1985) on the balance of sundry
debtors for sale of power, outstanding as at the end of the year.
m) Accounting for Grants:
As per para 2.33 / 2.34 / 2.35 of Electricity (Supply) Annual Accounts Rules,
1985, Grants received towards capital expenditure are shown separately
under capital grants and are neither diminished as deferred income nor cost of
assets has been reduced to the extent of such grants.
n) Contributions from consumers:
As per para 2.33 / 2.34 / 2.35 of ESAAR, 1985, consumer contributions
received for capital expenditure are shown separately under contributions and
are neither diminished as deferred income nor cost of assets have been
reduced to the extent of contributions. Further, the Company has accounted a
sum of Rs 1398.34 lakhs as contribution from consumers towards capital
assets which is only book value (at standard rates) of the assets transferred to
the Company for works executed by the consumers and does not represent
any value received in cash.
o) Investments:
I) Investment in Power Company of Karnataka Ltd (PCKL):
An amount of Rs 1.00 lakh paid towards the initial minimum share capital
and Rs 250 lakhs paid towards networth of Power Company of Karnataka
Ltd (PCKL) have been accounted as investments under account code
20.291.
II) Long term investments are carried at cost less provisions if any for
diminutions in the value of such investments. Current investments are
carried at Cost or fair value whichever is lower.
p) Compliance to Accounting Standards:
As per Section 616 of the Companies Act, 1956, the provisions set out in
ESAAR 1985 will prevail over the provisions of Companies Act, 1956, in the
event of any conflict between ESAAR, 1985, and Accounting Standards. The
Company has complied with accounting standards to such extent it does not
conflict with ESAAR, 1985.
43
Annual Report 2011-12
NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31.3.2012
NOTE : 01 SHARE CAPITAL (Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
1.1 Authorised Capital
30,00,00,000 Equity shares of Rs. 10/- each
30000.00 30000.00
1.2 Issued, Subscribed and Paid up
Equity Share Capital (7,17,80,000 shares of Rs. 10 each)
52.301 7178.00 5705.00
100289931 shares of Rs. 10 each are allotted as fully paid up to GOK without payment being received in Cash
52.302 10028.99 17206.99 10028.99 15733.99
TOTAL
17206.99
15733.99
1.3 Except one Share each held by the 10 Directors, remaining entire No. of share are held in the name of His Excellence Governor of Karnataka.
1.4 The reconciliation of the No. of Equity shares outstanding is set out below:
Particulars As at 31.03.2012 As at 31.03.2011
No. of Equity shares at the beginning of the Year 157339931 157339931
Add: No. of Equity shares issued during the Year 14730000 -
Less : No. of Equity shares cancelled on buy back during the Year
- -
No. of Equity shares at the end of the Year 172069931 157339931
NOTE : 02 RESERVES AND SURPLUS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
2.1 Capital Reserve:
As per Last Balance Sheet 56.2 132.66 132.66
Add: Additions during the Year
- -
Less: Utilised during the Year
- -
132.66 132.66
44
Mangalore Electricity Supply Company Limited
NOTE : 02 RESERVES AND SURPLUS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
2.2 Reserve for Material Cost
Variance
As per Last Balance Sheet 56.610 2345.77 2322.56
Add: Additions during the Year - 23.21
Less: Utilised during the Year 430.98 -
1914.79 2345.77
2.3 Profit and Loss Account
(Surplus)
As per Last Balance Sheet 58.200 5243.38 5073.27
Add: Additions during the Year 641.19 170.11
Less: Utilised during the Year - -
5884.57 5243.38
2.4
Contributions, grants and
subsidies towards cost of
Capital assets
2.4.1 Consumers contribution towards
cost of capital assets
55.1 14761.84 10724.40
2.4.2 Subsidies towards Cost of
Capital Assets
55.200 1193.33 1193.33
2.4.3 State Govt. grants towards cost
of capital works
55.300 400.00 400.00
2.4.4 APDRP Grant 55.301 3675.81 3675.81
2.4.5 PMGY Grant 55.302 56.25
56.25
2.4.6 RGGVY Grant 55.303 6442.91 6442.91
2.4.7 Special Grant Towards Capital
works under APDRP
55.500 3670.32 3670.32
2.4.8 GOK Grant Towards
energization of IP sets under
Ganga Kalyana Scheme
55.501 53.00 53.00
2.4.9 Central Govt. Grant towards
Power Sector Automation
55.502 63.00 63.00
Sub - Total 30316.46 26279.02
TOTAL
38248.48
34000.83
45
Annual Report 2011-12
NOTE : 3 SHARE DEPOSIT (SHARES PENDING ALLOTMENT)
(Rs. In lakhs)
Sl. No
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
3.1 Share Deposit from GOK Pending Allotment
52.303
0.03
-
TOTAL
0.03
-
NON -CURRENT LIABILITIES
NOTE: 04 LONG TERM BORROWINGS
(Rs. In lakhs)
Sl. No Particulars Account Code As at 31.03.2012 As at 31.03.2011
4.1 TERM LOANS
4.1.1 SECURED LOANS
4.1.1.1 From Banks 53.500 29247.08 28663.63
4.1.1.2 From Others 53.301, 3.308,
53.309, 53.311
963.40 1029.31
Sub- Total 30210.48 29692.94
4.1.2 UN-SECURED LOANS
4.1.2.1 From Banks
4.1.2.2 From Government 53.306,53.307
54.600,54.700,
54.701, 54.702
720.75 504.73
4.1.2.3 From Others 54.305, 53.310
53.960
778.07 928.91
Sub- Total 1498.82 1433.64
TOTAL
31709.30
31126.58
4.1.2.4 At the time of unbundling of transmission and distribution activities and formation
of Electricity Distribution Companies, the Government of Karnataka has
transferred certain loans taken by M/s KPTCL to the Company as part of transfer
of assets and liabilities. The interest payment as intimated by KPTCL has been
charged off in the books of accounts since the assets have been commissioned.
4.1.2.5 The loan balances between KPTCL and the Company is subject to reconciliation
and confirmation.
46
Mangalore Electricity Supply Company Limited
4.1.2.6 During the year 2010-11 Govt. of Karnataka has released a sum of Rs. 164.96 lakhs under Special Component Sub-Plan (SCSP) and Rs. 108.07 lakhs under Tribal Sub-Plan (TSP) for the infrastructure development in Power Sector as loan. The same was converted into Equity by a separate order No. EN 33 PSR 2011 Bangalore, Dated 30.09.2011 in the year 2011-12.
Further, During the year 2011-12 Govt. of Karnataka has released a sum of Rs. 275.00 lakhs under Special Component Sub-Plan (SCSP) and Rs. 179.48 lakhs under Tribal Sub-Plan (TSP) for the infrastructure development in Power Sector. As the Govt. has not stated the Terms and Conditions and rate of interest of the Loan, MESCOM has not made any financial provision for the payment of interest or repayment of principal for the year 2011-12 in the Annual Accounts.
4.1.2.7 Reconciliation of loan Balances
Sl. No.
Name of the Bank / Lender
Loan Drawn
Term
of Loan
in Yrs.
Floating Rate of Interest as
on 31.03.2012
(%)
Loan Installment due for 2012-13 Loan
Balance as on
01.04.2011
Loan Drawn during 2011-12
Repayment
during 2011-12
Loan Balance
as on 31.03.2012
No of Instal ments
Amount
I Term Loan-Secured
A Commercial Banks
1 Syndicate Bank Loan from Syndicate Bank is secured by a first charge (floating) on fixed assets viz., transformers, transmission lines, meters, poles, conductors, cables and computers worth Rs. 40.00 crores situated at Company jurisdiction
4000 7 13.25 12 514.39 3622.47 449.49 3172.98
2 Syndicate Bank Secured by a first charge on assets such as Plant & Machinery, line cable networks including poles, towers, Transformers, Meters etc, Furniture, Office equipment etc located in Dakshina Kannada, Udupi, Shimoga & Chikmagalur Districts.
9800 8 11.75 12 1428.60 1700.00 8100.00 20.24 9779.76
3 Corporation Bank secured by Hypothecation of present and future current assets of the Company.
5000 6 11.5 4 742.49 1742.49 1000.00 742.49
10000 8 12.6 12 1428.60 9523.80 1450.12 8073.68
4 Vijaya Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.
5000 6 12.15 12 598.89 1599.51 1000.62 598.89
47
Annual Report 2011-12
4.1.2.7 Reconciliation of loan Balances
Sl. No.
Name of the Bank / Lender
Loan Drawn
Term
of Loan
in Yrs.
Floating Rate of Interest as
on 31.03.2012
(%)
Loan Installment due for 2012-13 Loan
Balance as on
01.04.2011
Loan Drawn during 2011-12
Repayment
during 2011-12
Loan Balance
as on 31.03.2012
No of Instal ments
Amount
5 Punjab & Sind Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.
10000 8 11.75 12 1428.57 7261.90 1428.57 5833.33
6 UCO Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.
6000 9 13.25 4 750.00 5250.00 750.00 4500.00
7 Indian Bank Secured by Hypothecation of the whole of present and future current assets including inventories and book debts belonging to the Company situated at Corporate Office.
5000 9 12 4 625.00 4687.50 625.00 4062.50
Sub-Total 54800 7516.54 35387.67 8100.00 6724.04 36763.63
B Others
1 Loans from Rural Electrification Corporation Works at Mangalore and Udupi Town Secured by hypothecation of all existing unencumbered moveable properties including Machinery, Equipments, Machinery Spare, Tools, Implements and Accessories installed / created / erected and all future moveable properties including machinery etc purchased out of the loan amount.
4.58 4.58
2 REC– APDRP works Works at Shimoga, Bhadravathi and Chikmagalur are secured by way of first charge by hypothecation of moveable machinery, equipments, machinery spares, tools, implements and
2.54 158.35 2.54 155.81
48
Mangalore Electricity Supply Company Limited
4.1.2.7 Reconciliation of loan Balances
Sl. No.
Name of the Bank / Lender
Loan Drawn
Term
of Loan
in Yrs.
Floating Rate of Interest as
on 31.03.2012
(%)
Loan Installment due for 2012-13 Loan
Balance as on
01.04.2011
Loan Drawn during 2011-12
Repayment
during 2011-12
Loan Balance
as on 31.03.2012
No of Instal ments
Amount
accessories installed and equipments created under the project and procured out of loan.
3 REC – General Projects at Vogga, Kukkipady and Nellyadi in Dakshina Kannada district, are secured by first charge by hypothecation of all moveable machinery, equipments, machinery spares, tools, implements and accessories installed and equipments created under the project and procured out of loan sanctioned by REC.
63.37 570.34 63.37 506.97
5 PFC-R-APDRP works Loan from M/s PFC is secured by 1.moveable properties of newly financed Assets under projects installed at MESCOM project Area. 2. Existing and proposed Moveable plant and Machinery of the Company.
361.96 361.96
Sub-Total - 65.91 1095.22 - 65.91 1029.31
Total Secured Loans 54800 7582.45 36482.89 8100 6789.95 37792.95
II Term Loan-Un-Secured
1 APDRP-REC Loan payable to KPTCL.
150.84 314.42 150.84 163.58
2 PMGY Loan Account 7.66 109.74 7.66 102.08
3 GOK loan for energization of IP sets under GK scheme.
12.00 60.00 12.00 48.00
4 Central Govt. Loan towards Power Sector Automation.
14.70 102.90 14.70 88.20
5 Loan from GOK - Interest free.
62.34 62.34
6 REC – RGGVY Works 765.32 765.32
7 Loan from GOK under SCSP.
129.50 310.46 164.96 275.00
8 Loan from GOK under TSP
74.61 212.94 108.07 179.48
Sub-Total - 185.20 1618.83 523.40 458.23 1684.00
TOTAL LONG TERM LOANS
54800 7767.65 38101.73 8623.40 7248.18 39476.95
Term loan repayment in next year.
6975.15 7767.65
Net long term loan. 31126.58 31709.30
Note : The amount shown under column “ Repayment during 2011-12” above includes conversion of SCSP and TSP loans from GOK amounting to Rs. 273.03 lakhs ( Rs. 164.96 lakhs + Rs. 108.07 lakhs) into equity during FY 2011-12.
49
Annual Report 2011-12
NOTE: 05 DEFERRED TAX LIABILITIES (NET)
(Rs. In lakhs)
Sl. No Particulars Account Code As at 31.03.2012 As at 31.03.2011
-NIL-
NOTE: 06 OTHER LONG TERM LIABILITIES
(Rs. In lakhs)
Sl. No Particulars Account Code As at 31.03.2012 As at 31.03.2011
6.1 Trade Payables
6.1.1 M/s KPCL 41.108 39944.53 29227.31
6.1.2 Interest payable to
M/s KPCL
46.430 15903.67 10752.57
Sub-Total 55848.20 39979.88
6.2 Others
6.2.1 Security Deposits from
consumers:
6.2.1.1 Meter Security Deposits 47.603 to 47.606 2030.42 1731.51
6.2.1.2 Initial/ Additional Security
Deposits
48.100 to 48.200 29332.93 26161.42
Sub- Total 31363.35 27892.93
6.2.2 KPCL, KPTCL & Other
ESCOMs
6.2.2.1 M/s KPCL 42.203, 42.213, 3.48 3.48
6.2.2.2 M/s KPTCL 42.214, 42.219,
42.224, 42.229,
46.106
4004.10 4001.41
6.2.2.3 M/s BESCOM 42.215, 42.220,
42.225, 42.230
1370.57 1270.09
6.2.2.4 M/s HESCOM 42.216, 42.222,
42.232
167.71 109.07
6.2.2.5 M/s GESCOM 42.233 2056.79 1976.00
6.2.2.6 M/s CESCO 42.790 2430.05 2410.56
Sub- Total 10032.70 9770.61
50
Mangalore Electricity Supply Company Limited
NOTE: 06 OTHER LONG TERM LIABILITIES
(Rs. In lakhs)
Sl. No Particulars Account Code As at 31.03.2012 As at 31.03.2011
6.2.3 Staff related Liabilities
6.2.3.1 Security deposit from employees
46.920 0.62 1.06
Sub-Total 0.62 1.06
6.2.4 Liability to Suppliers and Contractors
6.2.4.1 Security Deposits in cash from Suppliers / Contractors
46.101 394.43 552.32
6.2.4.2 Retention Money- Bill amount retained as per terms of purchase order/ turnkey contract
46.104 2134.26 2944.15
Sub-Total 2528.69 3496.47
6.2.5 Payables to GOK
6.2.5.1 BRP - II recoveries 46.202 to 46.207 40.75 40.75
6.2.5.2 Amount recoverable from Govt. towards Bhagya Jyothi Works
28.816 109.22 109.22
Sub-Total 149.97 149.97
6.2.6 Others
6.2.6.1 Stale Cheques 46.910 14.46 3.61
6.2.6.2 Miscellaneous deposits 46.966 35.15 24.71
Sub-Total 49.61 28.32
TOTAL
99973.14
81319.24
6.7 The balance of consumers security deposit held as per accounts and consumers' ledger accounts are subject to reconciliation.
NOTE: 07 LONG TERM PROVISIONS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
7.1 Provisions for Employee benefits
7.1.1 Provision for earned leave encashment 44.130 1739.07 1598.90
7.1.2 Provision for Family Benefit Fund
44.141, 44.142, 44.143
507.56 564.49
Sub-Total
2246.63 2163.39
TOTAL 2246.63 2163.39
51
Annual Report 2011-12
CURRENT LIABILITIES
NOTE: 08 SHORT TERM BORROWINGS
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
8.1 Bank Overdraft
8.1.1 State Bank of Mysore 50.210 7179.00 2548.12
8.1.2 Vijaya Bank 50.260 1883.61 1551.97
Sub-Total 9062.61 4100.09
TOTAL
9062.61
4100.09
NOTE: 09 TRADE PAYABLES
(Rs. In lakhs)
Sl. No Particulars Account
Code As at 31.03.2012 As at 31.03.2011
9.1 LIABILITY FOR PURCHASE OF POWER
9.1.1 M/s. KPCL 41.108 24304.37 10717.21
9.1.2 M/s. NTPC RSTPS 41.110 1034.19 1025.59
9.1.3 M/s. Madras Atomic Power Station
41.111 23.00 24.30
9.1.4 M/s. Neyveli Lignite Corporation Ltd.,
41.112 1803.05 1483.58
9.1.5 M/s. NPCIL - Kaiga Generating Station
41.114 322.90 314.45
9.1.6 M/s. Sandur Power Co. Ltd. 41.115 251.73 440.52
9.1.7 M/s. Sahyadri Power Company Ltd.,
41.116 4.86 3.52
9.1.8 M/s. Kalson Power 41.118 27.48 49.55
9.1.9 M/s. Subhash Kabini 41.119 100.39 147.59
9.1.10 M/s. Graphite India Ltd., 41.120 - 38.62
9.1.11 M/s. Maruthi Power Gen Hemavathi Pvt. Ltd.,
41.122 - 37.44
9.1.12 M/s. Moodabagil Power Pvt. Ltd.
41.123 4.77 5.13
9.1.13 M/s. BPCL ( NERIA) 41.124 - 1.76
9.1.14 M/s JTPCL 41.125 1894.11 7285.70
9.1.15 M/s. Mrujara Power Plant 41.126 7.91 6.38
9.1.16 M/s. Rayalseema Alkalies 41.129 9.12 193.91
52
Mangalore Electricity Supply Company Limited
NOTE: 09 TRADE PAYABLES
(Rs. In lakhs)
Sl. No Particulars Account
Code As at 31.03.2012 As at 31.03.2011
9.1.17 M/s. Tata Company Limited 41.131 1055.74 751.97
9.1.18 M/s. UPCL 41.132 1595.43 1047.46
9.1.19 M/s Wind Mill Projects 41.140 801.47 502.57
9.1.20 M/s PGCIL 41.173 538.25 305.57
9.1.21 M/s Mysore Paper Mills Ltd 41.195 - -
9.1.22 M/s. NTPC VVNL 41.198 -
584.43
9.1.23 M/s. PTC India Limited 41.199 289.17
3891.46
9.1.24 M/s Indian Energy Exchange 41.200 - -
9.1.25 M/s. Lanco Electric Utility Ltd.
41.201 2.92 0.92
9.1.26 M/s. Shamili Hydel Power Project
41.202 61.66 60.41
9.1.27 M/s. Sagar Power (Dandela) Pvt. Ltd
41.203 - -
9.1.28 M/s. Soham mannapitlu Power Pvt. Ltd
41.204 - 27.75
9.1.29 M/s. Sagar Power (Neerukatte) Pvt. Ltd
41.205 - -
9.1.30 M/s. AMR Power Pvt Ltd 41.206 - 16.97
9.1.31 M/s. Cogeneration Units 41.208 1566.36 8.32
9.1.32 Sundry creditors towards Peak Power Purchase
41.210 341.67 -
9.1.33 Payable to KPTCL in respect of Wind Mill Projects
41.141 28.28 22.09
Total Power Purchase Liability
36068.83 28995.17
TOTAL
36068.83
28995.17
NOTE 10: OTHER CURRENT LIABILITIES
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
10.1 Current Maturities of Long Term Debts
10.1.1 Term Loan Installment due for repayment within ONE Year
10.1.1.1 Loans installment due to Commercial Banks
51.100 270.84 270.83
10.1.1.2 Loan drawn by MESCOM from REC– APDRP works
53.308 2.54 2.54
53
Annual Report 2011-12
NOTE 10: OTHER CURRENT LIABILITIES
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
10.1.1.3 Loan drawn by MESCOM from REC – General
53.309 63.37 63.37
10.1.1.4 Loans from Commercial Banks 53.500 7516.54 6724.05
10.1.1.5 APDRP-REC Loan payable to KPTCL
53.305 150.84 150.84
10.1.1.6 PMGY Loan Account 53.306 7.66 7.66
10.1.1.7 GOK loan for energization of IP sets under GK scheme
53.307 12.00 12.00
10.1.1.8 Central Govt. Loan towards Power Sector Automation
54.600 14.70 14.70
Sub-Total 7767.65 6975.16
10.2 Interest Accrued but not due on Borrowings
- -
10.3 Interest Accrued and due on Borrowings
- -
10.4 Income received in Advance - -
10.5 Other Payables
10.5.1 LIABILITY FOR SUPPLIES / WORKS
10.5.1.1 Liability for supply of Materials 42.101 542.14 595.09
10.5.1.2 Sundry creditors / Control Account
42.201 533.42 156.73
10.5.1.3 Contractors Control Account 42.401 713.82 622.67
10.5.1.4 Liability to Contractors 42.501 0.73 -
10.5.1.5 Provision for work completed but not commissioned where the expenditure is not booked.
42.601 2614.14 2309.57
Sub-Total 4404.25 3684.06
10.5.2 Statutory Dues
10.5.2.1 Income tax deducted at source on payment to contractors
46.924 12.41 14.12
10.5.2.2 Income tax deducted at source on other payments
46.925 0.73 0.25
10.5.2.3 Sales tax deducted at source and payable to department
46.927 2.67 1.73
10.5.2.4 Sales tax payable 46.951 0.73 0.12
54
Mangalore Electricity Supply Company Limited
NOTE 10: OTHER CURRENT LIABILITIES
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
10.5.2.5 Amount deducted from contractors bills towards PF, ESI & CESS
46.930 8.68 7.52
10.5.2.6 ESI Contributions recoverable form bill amount of contractors and payable to ESI Corporation
46.931 0.84 0.10
10.5.2.7 Amount of CESS deducted at source and payable to the department
46.932 2.05 4.60
10.5.2.8 Employees PF and departmental Share of PF payable a/c
46.957 - 0.01
Sub-Total 28.11 28.45
10.5.3 Employee related liabilities
10.5.3.1 Liability towards Pension & Gratuity Trust
44.122 1347.07 636.29
10.5.3.2 Liability towards contribution to newly defined contributory pension scheme
44.150 31.15 23.14
10.5.3.3 Unpaid Salaries 44.210 0.55 9.22
10.5.3.4 Unpaid Bonus 44.220 0.23 0.25
10.5.3.5 Salary payable 44.310 19.05 16.83
10.5.3.6 Salary payable to contract employees
44.311 0.82 0.91
10.5.3.7 Bonus payable 44.320 9.96 33.47
10.5.3.8 Ex-gratia payable 44.330 142.33 121.82
10.5.3.9 Sundry creditors for expenses 46.410 61.46 38.04
10.5.3.10 Sundry creditors for T.A to contract employees
46.411 - 0.04
10.5.3.11 Security deposit from employees
46.920 0.21 0.15
Sub-Total 1612.83 880.16
10.5.4 Payables to GOK
10.5.4.1 Electricity tax 46.300 1286.25 1040.13
10.5.4.2 Compounding fee 46.301 0.94 1.18
10.5.4.3 Inspection charges payable to Govt.
46.440 1.36 1.94
10.5.4.4 Royalty payable to Govt. 46.450 0.02 0.17
Sub-Total 1288.57 1043.42
55
Annual Report 2011-12
NOTE 10: OTHER CURRENT LIABILITIES
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
10.5.5 Payables to Consumers
10.5.5.1 Interest on ISD/ASD 48.340 1510.25 1395.78
10.5.5.2 Interest on MSD 48.350 184.39 163.87
10.5.5.3 Other Deposits from Consumers
47.601 to
47.602
43.83 42.42
Sub-Total 1738.47 1602.07
10.5.6 Others
10.5.6.1 Security Deposits in cash from Suppliers / Contractors
46.101 264.50 182.16
10.5.6.2 Retention Money-Bill amount retained as per terms of purchase order/turnkey contract
46.104 760.72 214.36
10.5.6.3 Liability for expenses 46.430 10635.63 10482.42
10.5.6.4 Stale Cheques 46.910 0.19 8.05
10.5.6.5 Advance received for sale of stores scrap etc.,
46.922 - 0.46
10.5.6.6 Amount recoverable from salary of Company employees and payable to other department / other institutions
46.928 68.62 52.74
10.5.6.7 Amount recovered from salary of employees towards employees CPS
46.952 28.54 20.55
10.5.6.8 Miscellaneous deposits 46.966 0.97 1.72
10.5.6.9 Excess credit afforded by banks pending reconciliation - Canara Bank
46.974 0.01 0.01
10.5.6.10 Excess credit afforded by banks pending reconciliation - Syndicate Bank
46.975 0.16 0.16
10.5.6.11 Excess credit afforded by banks pending reconciliation - Corporation Bank
46.976 0.01 0.01
10.5.6.12 Amount payable to other Departments against DCW works
46.967, 46.970
63.97 63.97
10.5.6.13 Electrification / Service Connection
47.300 2698.79 2744.75
56
Mangalore Electricity Supply Company Limited
NOTE 10: OTHER CURRENT LIABILITIES
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
10.5.6.14 Stock Excess pending Investigation.
22.810 4.34 -
10.5.6.15 Sundry debtors for sale of power - BJ scheme
23.101 128.50 119.21
10.5.6.16 Sundry debtors for sale of power - LT3 Commercial
23.115 78.01 76.55
10.5.6.17 Sundry debtors for sale of power-temporary power supply
23.145 1361.83 1183.05
10.5.6.18 Advance paid to KPTCL towards transmission charges
28.911 26.13 -
Sub-Total 16120.92 15150.17
10.5.7 Inter Unit Accounts (Net) 31 to 37 133.08 133.08
TOTAL
33364.72
29767.40
NOTE: 11 SHORT TERM PROVISIONS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
11.1 Provision for Employee benefits
11.1.1 Provision for earned leave encashment
44.130 475.16 157.53
11.1.2 Provision for Family Benefit Fund 44.143 130.00 123.91
Sub-Total 605.16 281.44
11.2 Others
11.2.1 Provision for Income Tax 46.800 93.57 93.57
TOTAL
698.73
375.01
57
Annual Report 2011-12
Note : 12 Tangible Assets
(Rs. in Lakhs)
Particulars
Original Cost Depreciation Net Block Value
A/c
Code
As at
01.04.2011
Additions
during the
Year
Deductions/
Retirements
during the
Year
As at
31.03.2012
A/c
code
As at
01.04.2011
For the
Year
Deductions/
Adjustments
during the
Year
As at
31.03.2012
As at
31.03.2011
As at
31.03.2012
Tangible Assets
Land: Free hold 10.1
448.73 3.92 - 452.65 12.1
- - - - 448.73 452.65
Lease hold 11.08 - 0.95 10.13 0.58 0.37 0.95 - 10.50 10.13
Buildings 10.2 2041.04 275.03 - 2316.07 12.2 429.60 73.22 - 502.82 1611.44 1813.25
Hydraulic Works 10.3 177.28 17.08 - 194.36 12.3 39.76 9.50 - 49.26 137.52 145.10
Other Civil Works 10.4 28.21 14.88 - 43.09 12.4 5.73 1.03 - 6.76 22.48 36.33
Plant & Equipments 10.5 18958.35 5003.08 2063.09 21898.34 12.5 4401.82 1153.37 439.83 5115.36 14556.53 16782.98
Lines, Cable Networks 10.6 101372.74 10848.55 360.34 111860.95 12.6 34063.73 4858.20 283.11 38638.82 67309.01 73222.13
Vehicles 10.7 336.07 22.56 5.54 353.09 12.7 279.08 5.07 4.98 279.17 56.99 73.92
Furniture & fixtures 10.8 228.28 25.07 0.91 252.44 12.8 102.87 15.11 0.82 117.16 125.41 135.28
Office Equipments 10.9 99.40 -28.04 0.35 71.01 12.9 42.79 0.78 0.25 43.32 56.61 27.69
TOTAL
123701.18 16182.13 2431.18 137452.13
39365.96 6116.65 729.94 44752.67 84335.22 92699.46
Previous Year's
Figures 10 107052.46 18996.38 2347.66 123701.18 12 35106.00 5099.02 839.06 39365.96 71946.46 84335.22
The account head 10.101 - Land free hold - includes an amount of Rs. 14.36 lakhs in respect of land purchased for Shikaripura Division from APMC, which has
covenant that the land cannot be sold to any one until completion of 10 years period from the date of purchase.
58
Mangalore Electricity Supply Company Limited
NOTE: 13 - INTANGIBLE ASSETS
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
----------NIL--------
NOTE: 14 CAPITAL WORKS IN PROGRESS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
14.1 Capital Works in Progress 14.000 7179.28 9310.18
14.2 Revenue expenses pending allocation over capital works - Interest
15.206 43.98 10.12
14.3 Preliminary expenditure on survey / feasibility studies of projects not yet sanctioned
17.301 0.47 0.47
Sub Total 44.45 10.59
TOTAL 7223.73 9320.77
14.4 An amount of Rs 224.83 lakhs towards interest on loan taken for capital works has
been capitalized during the year.
NOTE: 15 - INTANGIBLE ASSETS UNDER DEVELOPMENT
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
-------- NIL--------
NOTE : 16 NON- CURRENT INVESTMENTS
(Rs. In lakhs)
Sl. No Particulars Account
Code As at 31.03.2012 As at 31.03.2011
16.1 Investments:
16.1.1 Long Term Investments –
(Un-quoted at cost.)
16.1.1.1 Investment in share capital of Power Company of Karnataka Limited (25100 Equity shares of Rs. 1000 each)
20.291 251.00 251.00
TOTAL
251.00
251.00
59
Annual Report 2011-12
NOTE: 17 DEFERRED TAX ASSETS (NET)
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
-------- NIL--------
NOTE 18: LONG TERM LOANS AND ADVANCES
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
18.1 Deposit with Others 28.935 256.60 242.94
TOTAL
256.60
242.94
NOTE 19: OTHER NON CURRENT ASSETS
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
19.1 Long Term Trade Receivables
19.1.1 1. Secured and considered Good
- -
19.1.2 2. Un-secured and considered Good
- -
19.2 Subsidy Recoverable from GOK
19.2.1 Subsidy / Grants receivable 28.620 8027.60 8027.60
Sub-Total 8027.60 8027.60
19.3 Others
19.3.1 Receivables from KPCL, KPTCL and Other ESCOMs
19.3.1.1 M/s KPTCL 28.826, 28.831, 28.836, 28.841,
28.881
9134.94 9135.07
19.3.1.2 M/s BESCOM 28.827, 28.832, 28.837, 28.842
13985.08 17162.16
19.3.1.3 M/s HESCOM 28.829, 28.839, 28.844
18156.18 2436.27
19.3.1.4 M/s GESCOM 28.840, 28.845 8492.04 7959.17
19.3.1.5 M/s CESCO 28.850, 28.851, 28.790
25149.22 23747.92
60
Mangalore Electricity Supply Company Limited
NOTE 19: OTHER NON CURRENT ASSETS
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at 31.03.2012 As at 31.03.2011
19.3.1.6 M/s KPCL (related to VVNL) 28.865, 28.874 4.09 4.09 Sub-Total 74921.55 60444.68
19.3.2 Other Receivables
19.3.2.1 Income tax /FBT paid in advance
28.821 3344.56 2452.66
19.3.2.2 Amount deposited with PF Authorities
46.930 177.63 177.63
19.3.3 Assets not in Use
19.3.3.1 Written down value (WDV) of Faulty / Dismantled Assets.
16.200 552.72 400.00
Sub-Total 4074.91 3030.29
TOTAL
87024.06
71502.57
19.2.1 The GOK vide order No. EN 34 PSR 2008 dated 19.08.2010 has ordered to refund the amount paid by the farmers during the period from 01.04.2001 to 31.03.2003 to them and the same is implemented by MESCOM and an amount of Rs. 31.79 Crs is shown as receivable from GOK.
NOTE 20: DEFERRED COSTS (Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
--------- NIL ---------
NOTE 21: CURRENT INVESTMENTS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
--------- NIL---------
NOTE - 22 INVENTORIES, STORES AND SPARES
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
22.1 Materials Stock Account
22.1.1 Materials Stock Account 22.610 3048.45 1485.10
22.1.2 Material imprest Account 22.641 18.64 22.33
22.1.3 Materials Account - Temporary works
22.731 5.71 7.20
Sub- Total 3072.80 1514.63
22.2 Written down value (WDV) of obsolete / scrapped assets.
16.100 177.49 311.47
TOTAL
3250.29
1826.10
,
61
Annual Report 2011-12
NOTE: 23 TRADE RECEIVABLES
(Rs. In lakhs)
Sl. No Particulars Account
Code As at 31.03.2012 As at 31.03.2011
23.1 TRADE RECEIVABLES
23.1.1 Sundry Debtors for sale of
Power – LT, HT & Others
( Excluding Un billed
revenue)
23,
47.607,
47.609
40757.35 34344.60
Less :
23.1.1.1 Provision for withdrawal of
Revenue demand
23.800 -336.20 -376.44
23.1.1.2 Provision for Doubtful Dues
from consumers (Credit
Account)
23.900 -5300.26 -5082.98
Net Receivables against
Supply of Power
35120.89 28885.18
23.2 (Sundry debtors
outstanding for less than 6
months & considered
good)
11221.22 8963.57
23.3 (Sundry debtors
outstanding for more than 6
months & considered good)
23899.67 19921.61
TOTAL
35120.89
28885.18
23.1.1
23.1.2
The outstanding balance in Revenue Suspense Account representing collection
from consumers pending allocation for want of details has been shown as
deduction from the Sundry Debtors account since this amount is with the
Company.
The Trade receivables include an amount of Rs. 2219.78 lakhs being the amount
due from M/s Mysore Paper Mills (MPM) Bhadravathi. The principal amount
outstanding as on 28.02.2011 was Rs. 948.33 lakhs which was reconciled. But,
M/s MPM has not made any payments to clear these dues. Besides M/s MPM is
not paying even the monthly bills in full because of which the dues accumulated
to Rs. 2219.78 lakhs as on 31.03.2012. MESCOM is in the process of recovery
of the dues from M/s MPM, for which once the installation was disconnected on
03.07.2012, but later reconnected on the same day with the assurance of making
prompt payment of bills in future. The matter is being pursued with M/s MPM.
62
Mangalore Electricity Supply Company Limited
NOTE 24: CASH AND CASH EQUIVALENTS
(Rs. In lakhs)
Sl. No. Particulars Account
Code As at
31.03.2012 As at
31.03.2011
24.1 Balances with Banks
24.1.1 Collecting Bank Accounts (Non-Operative)
24.300 1098.24 313.32
24.1.2 Disbursement Bank Account (Operative)
24.1.2.1 State Bank of Mysore 24.401 2.13 16.24
24.1.2.2 State Bank of India 24.402 3.11 5.32
24.1.2.3 Canara Bank 24.404 4.16 5.33
24.1.2.4 Syndicate Bank 24.405 34.80 29.68
24.1.2.5 Vijaya Bank 24.409 72.48 291.75
24.1.2.6 State Bank of Mysore 24.411 65.65 13.32
24.1.2.7 State Bank of India 24.412 18.65 2.65
24.1.2.8 Canara Bank 24.414 129.77 59.33
24.1.2.9 Syndicate Bank 24.415 565.66 61.17
24.1.2.10 Corporation Bank 24.424 17.28 134.13
24.1.2.11 Punjab Sind Bank 24.425 0.14 67.45
24.1.2.12 UCO Bank 24.426 0.01 243.00
24.1.2.13 AXIS Bank 24.427 0.11 0.05
24.1.2.14 Karnataka Bank 24.428 23.08 31.97
24.1.2.15 Indian Bank 24.429 2.07 42.87
Sub-Total 939.10 1004.26
24.2 Cash on Hand 24.110, 24.210
504.56 176.80
24.3 Others
24.3.1 Postage stamps on hand 24.120 2.23 1.77
24.3.2 Remittance to Head Office -Transit Account
24.500 4.20 4.40
24.3.3 Transfers from Head Office In Transit Account
24.600 113.87 1.19
24.4 Fixed deposits in Banks
24.4.1 Margin Money towards L.C. 20.280 348.65 319.00
24.4.2 Un-utilised R-APDRP fund 20.280 170.00 170.00
24.4.3 Un-utilised RGGVY fund 20.280 550.00 800.00
24.4.4 Others 20.280 8.84 8.84
Sub-Total 1077.49 1297.84
TOTAL
3739.69
2799.58
63
Annual Report 2011-12
24.4.3 The Central Government through RECL has released capital subsidy / grant amount of Rs. 6442.91 lakhs and M/s. RECL has released Loan amounting to Rs. 765.32 lakhs as on 31.03.2012, for implementation of RGGVY Scheme in Chikmagalore and Shimoga districts to provide power supply to the consumers under BPL category. The unspent amount has earned interest of Rs. 99.76 lakhs upto 31.03.2012. Out of total funds of Rs. 7307.99 lakhs, Rs. 6698.63 lakhs has been spent for arranging payments of Initial Advance Bills for Supply of materials and Labour Bills etc. pertaining to RGGVY Project. Out of Unspent balance, Rs. 550.00 Lakhs is kept in fixed deposit with Vijaya Bank, Hampankatta Branch and remaining amount of Rs. 59.36 lakhs is retained in the Current account.
NOTE 25: SHORT TERM LOANS AND ADVANCES
(Rs. In lakhs)
Sl. No Particulars Account
Code As at
31.03.2012 As at 31.03.2011
25.1 Capital Advance
25.1.1 Secured Considered good
25.1.1.1 Advances to Suppliers (considered good & Fully Secured)
25.501 170.77 180.46
25.1.1.2 Advances to Contractors 26.6 1898.40 2624.38
25.1.2 Un-Secured Considered good - -
Sub-Total 2069.17 2804.84
25.2 Security Deposits
25.2.1 Secured Considered good - -
25.2.2 Un-Secured Considered good - -
25.3 Loans and Advances to related Parties
25.3.1 Secured Considered good - -
25.3.2 Un-Secured Considered good - -
25.4 Other Loans and Advances
25.4.1 Secured Considered good - -
25.4.2 Un-Secured Considered good
25.4.2.1 Loans and advances to Staff - Interest bearing
25.4.2.1.1 Advance of pay 27.201 - -
25.4.2.1.2 Travel advance 27.202 2.94 2.99
25.4.2.1.3 Festival advance 27.203 38.99 44.74
25.4.2.1.4 Medical advance 27.204 29.69 29.07
64
Mangalore Electricity Supply Company Limited
NOTE 25: SHORT TERM LOANS AND ADVANCES
(Rs. In lakhs)
Sl. No Particulars Account
Code As at
31.03.2012 As at 31.03.2011
25.4.2.1.5 Advances to staff against expenses
27.205 11.87 19.12
25.4.2.1.6 Bicycle advance 27.209 - -
25.4.2.1.7 Transformers / meters etc. issued for repairs to the Company personnel
27.210 4.04 9.44
Sub-Total 87.53 105.36
25.5 Advance paid to Power Company of Karnataka Limited
28.913 25.95 56.18
TOTAL
2182.65
2966.38
25.5 Rs. 99 lakhs paid towards working Capital of PCKL during FY 2007-08 is accounted under Account Code 28.913 as advance. After adjusting the revenue expenditure of M/s. PCKL for FY 2007-08 to FY 2011-12, the net balance under account code 28.913 is Rs. 25.95 lakhs.
NOTE 26: OTHER CURRENT ASSETS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
26.1 Sundry Debtors for Un Billed Revenue
23.400 11092.61 8132.91
26.2 Sundry Debtors- Trading Account
28.100 983.83 537.47
26.3 Income accrued and due on Bank Deposits
28.210 6.80 0.09
26.4 Recoverable from GOK
26.4.1 Subsidy receivable from GOK towards BJ/KJ consumers
28.626 830.65 830.97
26.4.2 Amount receivable from State Govt. towards free supply of power to IP Sets upto 10 HP
28.627 18209.77 5538.22
Sub-Total 19040.42 6369.19
26.5 Recoverable from Employees
26.5.1 Amount recoverable from Employees
28.401 64.27 36.95
65
Annual Report 2011-12
NOTE 26: OTHER CURRENT ASSETS
(Rs. In lakhs)
Sl. No.
Particulars Account
Code As at 31.03.2012 As at 31.03.2011
26.5.2 Amount recoverable from Ex-employees
28.402 - 0.04
26.5.3 Amount recoverable from employees - material related
28.409 26.17 13.33
Sub-Total 90.44 50.32
26.6 Others
26.6.1 Claims for Loss / Damage to Capital Assets
28.749 15.98 19.75
26.6.2 Expenses recoverable from suppliers / contractors
28.810 0.09 0.08
26.6.3 Prepaid Expenses 28.820 2.73 3.31
26.6.4 Receivable from others 28.898 1447.57 1506.00
26.6.5 Amount receivable from P&G Trust
28.907 190.61 452.02
26.6.6 Advances to PCKL towards UI Charges
28.910 258.88 15.52
26.6.7 Advance paid to KPTCL towards transmission charges
28.911 - 358.30
26.6.8 Advance made to M/s. PCKL towards short term power purchase
28.915 329.84 394.47
26.6.9 Advance made to M/s. PCKL towards Non- POC bills
28.916 5.32 -
26.6.10 Regulatory Assets - KERC 28.922 3365.92 7593.00
26.6.11 M/s. Malavalli Power Plant, 41.117 - 19.54
26.6.12 M/s NTPC VVNL 41.198 0.05 -
26.6.13 Flood Relief Fund 46.978 - -0.01
Sub-Total 5616.99 10361.98
TOTAL
36831.09
25451.96
26.4.2 The GOK has released an amount of Rs. 700.00 Lakhs vide GO No. EN22 PSR 2011 dated 31.03.2012 as subsidy towards free power supply to IP sets. The said amount was received by cash on 07.04.2012. But as on 31.03.2012 it has been shown as receivable from GOK.
26.6 Regulatory Asset: In accordance with Hon‟ble KERC Tariff order dated 7th December 2010, MESCOM has created Regulatory Assets to the extent of Rs. 7593.00 lakhs by exhibiting it in Note 26 as Regulatory Asset as on 31.03.2011. Out of the said amount an amount of Rs. 4227.08 Lakhs is recovered from the revenue realizations in FY 2011-12. Balance will be recovered in FY 2012-13.
66
Mangalore Electricity Supply Company Limited
NOTE : 27 REVENUE FROM OPERATIONS
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
27.1 Revenue from Operations
27.1.1 REVENUE FROM SALE OF POWER – LT
27.1.1.1 Bhagya jyothi Scheme. 61.101 831.11 583.10
27.1.1.2 Revenue from sale of power BJ/KJ up to 18 Units
61.402 719.78
640.10
27.1.1.3 Domestic combined lighting, heating and motive power, Private, Professional and unaided educational institutions.
61.110 61.111
35784.88 30448.84
27.1.1.4 Commercial and Non-Industrial Lights and Fans.
61.115 18338.19 15908.25
27.1.1.5 Irrigation Pump Sets (10 HP & below)/ Water Lifting.
61.119 32288.29 22693.53
27.1.1.6 Irrigation Pump sets (above 10 HP)/Water Lifting.
61.120 40.79 32.17
27.1.1.7 Water supply-V.P, T.P and Others
61.125 3845.24 3477.00
27.1.1.8 Private Horticultural Nurseries, Coffee, Tea, Coconut and Areca nut Plantations.
61.121 173.67 129.20
27.1.1.9 Industrial, Non-Industrial, Heating and Motive Power including Lighting
61.129 To
61.133
7121.26 6499.61
27.1.1.10 Public Lighting-V.P, T.P and Others
61.140 2438.41 2062.35
27.1.1.11 Temporary Power Supply - Non-commercial lights and fans and other small appliances.
61.145 2219.60 4093.42
Sub-Total 103801.22 86567.57
27.1.2 Revenue from Sale of Power – HT
27.1.2.1 Public Water Supply & Sewerage Pumping
61.250 3346.80 2952.11
27.1.2.2 Industrial, Non-industrial and Commercial purposes & Railway Traction
61.255 32633.23 28814.26
67
Annual Report 2011-12
NOTE : 27 REVENUE FROM OPERATIONS
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
27.1.2.3 Commercial. 61.256 14218.56 11617.58
27.1.2.4 Irrigation and Agricultural Farms. Lift Irrigation Societies, Lift Irrigation Schemes and Govt., Horticultural Farms.
61.260 189.36 15.18
27.1.2.5 Private Horticultural Nurseries, Coffee and Tea Plantations
61.261 8.24 7.40
27.1.2.6 Residential apartments and colonies availing power supply independently.
61.271 931.90 808.65
Sub-Total 51328.09 44215.18
TOTAL REVENUE FROM OPERATIONS
155129.31 130782.75
27.2 Less: Withdrawal of Revenue Demand
83.830, 83.831, 83.832, 83.833
82.07 756.88
REVENUE FROM OPERATIONS
155047.24 130025.87
27.3 OTHER REVENUE FROM OPERATIONS
27.3.1 Wheeling charges recoveries
61.800 0.01 -
27.3.2 Miscellaneous charges from Consumers.
27.3.2.1 Reconnection Fee (D & R) 61.902 15.62 29.22 27.3.2.2 Service Connection
charges 61.904 545.96 659.24
27.3.2.3 Other Receipts from consumers
61.906 136.89 108.79
27.3.2.4 Amount collected for green tariff
61.907 120.00 -
27.3.2.5 Incentives received 62.918 891.66 597.83
27.3.2.6 Other income relating to purchase of power
62.919 2000.26 1033.67
Sub- Total 3710.39 2428.75
27.4 Regulatory Assets
27.4.1 Income on account of Regulatory Assets
-4227.08 7593.00
NET REVENUE FROM OPERATIONS
154530.56
140047.62
68
Mangalore Electricity Supply Company Limited
27.5 Total Revenue from sale of energy during 2011-12 includes Rs 11092.61 Lakhs in
respect of revenue accrued but pending billing at the year end. The same was
Rs. 8132.91 Lakhs for the previous year 2010-11.
27.6 During the Year the amount to be received from the GOK as subsidy towards free
power supply to IP set consumers having connected load of upto and inclusive of
10 HP and free power supply to BJ/KJ consumers with consumption upto 18 units
on actual basis is Rs. 30803.00 lakhs and Rs.720 lakhs respectively. Out of the
said receivable, an amount of Rs. 26168.00 lakhs and Rs. 720 lakhs has been
released for IP Set and BJ/ KJ installations respectively as per KERC Tariff Order.
The balance amount is accounted as receivable from GOK.
NOTE: 28 OTHER INCOME
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
28.1 Interest Income - -
28.1.1 From Consumers
28.1.1.1 Delayed payment charges from consumers
61.905 2373.25 3036.08
28.1.2 From Others
28.1.2.1 Interest on Bank Fixed Deposits 62.222 104.41 53.54
Sub-Total 2477.66 3089.62
28.2 Dividend Income - -
28.3 Net Gain/ Loss on sale of Investments
- -
28.4 Other Non-operating Income
28.4.1 Profit on sale of stores 62.330 120.58 1.55
28.4.2 Sale of scrap 62.340 149.64 108.72
28.4.3 Other Miscellaneous receipts from Trading
62.360 1.25 6.54
28.4.4 Gain on Sale of Assets 62.400 49.28 53.65
Sub-Total 320.75 170.46
28.5 Miscellaneous Receipts
28.5.1 Rental from Staff Quarters 62.901 83.09 51.63
28.5.2 Rental from others 62.902 4.83 5.96
28.5.3 Excess found on physical verification of Materials Stock
62.905 4.64 0.35
28.5.4 Rebate for collection of Electricity Duty
62.916 29.50 25.51
28.5.5 Miscellaneous Recoveries 62.917 978.42 672.83
69
Annual Report 2011-12
NOTE: 28 OTHER INCOME
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
28.5.6 Interest received from Income
Tax Department
62.920 14.31 20.99
28.5.7 Subsidies against Loss on
account of Flood, Fire, Cyclone
etc.,
63.200 - 10.96
Sub-Total 1114.79 788.23
28.6 Income relating to previous
years :
28.6.1 Receipts from Consumers
Relating to Prior periods
65.200 - 1.63
28.6.2 Interest income for prior periods 65.400 2.00 11.22
28.6.3 Excess provision for Interest
and Finance Charges in prior
periods
65.700 - 21.86
28.6.4 Other Excess provision in prior
periods
65.800 98.18 1123.80
28.6.5 Other Income relating to prior
periods
65.900 20.03 751.75
28.6.6 Tariff subsidy relating to prior
period
65.910 12326.00 1852.75
Sub-Total 12446.21 3763.01
TOTAL
16359.41
7811.32
28.1.1.1 Since the arrears in respect of IP set Consumers having connected load upto 10
HP is freezed with effect from 01.08.2008, the Company has not charged interest
on this arrears during the year 2011-12.
28.5.4 As per the Government Order No. EN 06 PSR 2009 Bangalore, Dated
22.02.2010 the rebate payable to the Electricity Distribution Companies for
collection of Electricity Tax from Consumers and its remittance to Govt. is revised
from 1.5% to 0.5% with effect from 01.01.2010.
28.7 Electricity Taxes: Electricity Tax of Rs. 2549.48 lakhs collected from Consumers
has been adjusted against the Tariff Subsidy received/ receivable from Govt. vide
order No. EN 22 PSR 2011/Bangalore dated 31.03.2012.
70
Mangalore Electricity Supply Company Limited
NOTE : 29 PURCHASE OF POWER
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
29.1 Purchase of Power
29.1.1 M/s. KPCL 70.108 41215.93 34516.52
29.1.2 M/s. NTPC RSTPS 70.110 14730.83 12457.85
29.1.3 M/s. Madras Automic Power Station
70.111 279.62 228.86
29.1.4 M/s. Neyveli Lignite Corporation Ltd.,
70.112 8642.19 4493.80
29.1.5 M/s NPCIL-Kaiga 70.114 3411.70 2500.19
29.1.6 M/s. Sandur Power Company Ltd.,
70.115 3200.43 2671.04
29.1.7 M/s. Sahyadri Power Company Ltd.,
70.116 33.36 24.25
29.1.8 M/s. Malavalli Power Plant,
70.117 23.34 340.92
29.1.9 M/s. Kalson Power 70.118 389.46 275.99
29.1.10 M/s. Subhash Kabini 70.119 2682.19 1555.94
29.1.11 M/s. Graphite India Ltd., 70.120 181.99 188.92
29.1.12 M/s. Maruthi Power Gen(I) Kabini Pvt. Ltd.,
70.121 238.62 304.13
29.1.13 M/s. Maruthi Power Gen Hemavathi Pvt. Ltd.,
70.122 115.92 209.70
29.1.14 M/s. Moodabagil Power Pvt. Ltd.
70.123 35.02 24.79
29.1.15 M/s. Bhoruka Power Corporation Ltd., (NERIA)
70.124 801.22 824.71
29.1.16 M/s. Mrujara Power Plant 70.126 60.95 56.17
29.1.17 M/s. Rayalseema Alkalies 70.129 874.01 1911.47
29.1.18 M/s. Tata Company Limited
70.131 4872.69 5066.98
29.1.19 M/s. UPCL 70.132 12491.69 3214.12
29.1.20 Wind Mill Projects 70.140 8293.98 4312.02
29.1.21 M/s. Mysore Paper Mills Ltd.,
70.195 146.55 214.17
29.1.22 M/s. Shamili Hydel Power Project
70.202 949.72 843.81
29.1.23 M/s. Sagar Power (Dandela) Pvt. Ltd.,
70.203 553.66 610.94
29.1.24 M/s. Soham Mannapitlu Power Pvt. Ltd.,
70.204 479.98 983.51
71
Annual Report 2011-12
NOTE : 29 PURCHASE OF POWER
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
29.1.25 M/s. Sagar Power (Neerukatte) Pvt. Ltd.,
70.205 702.93 699.41
29.1.26 M/s. AMR Power Pvt. Ltd. 70.206 1563.49 1657.13 29.1.27 KPTCL Transmission
Charges 70.161 13737.34 9836.36
29.1.28 SLDC Charges 70.162 181.67 111.03
29.1.29 PGCIL Transmission Charges
70.163 3004.20 3258.67
29.1.30 Power purchased from PGCIL - NON POC bill
70.213 33.98 -
29.1.31 Power purchased from M/s SRM Power
70.212 13.59 -
29.1.32 Other power purchase cost
70.211 16.15 7.22
Sub-Total 123958.40 93400.61
29.2 High Cost Energy Purchased
29.2.1 UI Charges credits received
70.171 -410.70 -170.16
29.2.2 UI charges 70.172 620.60 936.48 9.2.3 M/s. GMR 70.133 - 5.56
29.2.4 Power purchased from JTPCL
70.125 8002.57 17735.24
29.2.5 Short term power purchased from M/s. NTPC - VVNL
70.198 567.52 2656.63
29.2.6 Short term power purchased from M/s. PTC India Limited
70.199 2357.67 9274.69
29.2.7 Short term power purchased from Indian Energy Exchange
70.200 1016.27 675.77
29.2.8 Power purchases from M/s. LANCO Electric Utility Limited
70.201 405.21 70.92
29.2.9 Power purchased from Non PPA Co-generation Units
70.208 2905.19 964.96
29.2.10 Power purchased during Peak Hours
70.210 2638.75 -
Sub-Total 18103.08 32150.09
29.3 Power Purchase cost withdrawn on the basis of energy balancing
70.209 -14435.88 -15191.00
TOTAL
127625.60
110359.70
72
Mangalore Electricity Supply Company Limited
29.3(a) With effect from 1.4.2011, share of power project capacity allocated to MESCOM has been revised vide GOK notification No. EN 126 EMC 2010 dated 12.10.2011 & 04.01.2012. Power Purchase Cost is being accounted for and paid as per the above share which is readjusted at the end of the year based upon actual drawal of energy for the year.
29.3(b) MESCOM is arranging payment to the power suppliers based on the notional share basis fixed and notified by the Govt. of Karnataka from time to time. Based on the energy balancing report furnished by LDC for the year 2008-09, 2009-10 & 2010-11, the results have been incorporated in the books of the accounts of MESCOM during the year 2010-11 which was again revised in the current year. The difference was accounted along with the provisional Energy Balancing results for the year 2011-12 based on joint reconciliation carried out by all the ESCOMs at LDC.
NOTE : 30 EMPLOYEE COSTS
(Rs. In Lakhs)
Sl. No. Particulars Account
Code
For the Year
2011-12
For the Year
2010-11
30.1 Salaries and Wages
30.1.1 Salaries 75.100 7471.58 7489.19
30.1.2 Over Time 75.200 241.30 270.02
30.1.3 Dearness Allowance 75.300 5088.41 4123.85
30.1.4 Other Allowances 75.400 686.00 719.22
30.1.5 Bonus 75.500 154.60 155.24
30.1.6 Medical Expenses
reimbursement
75.611 182.89 157.32
30.1.7 Leave travel assistance 75.612 - 0.06
30.1.8 Earned leave encashment 75.617 812.96 911.66
30.1.9 Earned leave encashment to
retired employees
75.618 321.27 183.88
30.1.10 Payment under Workmen's
Compensation Act
75.629 12.08 2.99
30.1.11 Payment to helpers/employees
of Monsoon gang
75.630 174.31 82.00
30.1.12 Pension & Leave contribution
of employees on deputation
75.8907 11.07 10.77
Sub-Total 15156.47 14106.20
30.2 Contribution to Provident
and Other Funds
30.2.1 Terminal benefits (PF)
Company Contribution
75.8107 111.70 96.36
30.2.2 Terminal benefits (Pension)
Company Contribution
75.8307 2654.04 2402.68
73
Annual Report 2011-12
NOTE : 30 EMPLOYEE COSTS
(Rs. In Lakhs)
Sl. No. Particulars Account
Code
For the Year
2011-12
For the Year
2010-11
30.2.3 Terminal Benefits Company
contribution to Contributory
pension scheme with effect
from 01.04.06
75.8317 352.80 213.92
30.2.4 Terminal Benefits (Gratuity) 75.8407 192.12 121.28
Sub-Total 3310.66 2834.24
30.3 Expenses on ESOP and
ESPP
- -
30.4 Staff Welfare expenses 75.7,
75.860,
75.880
312.31 364.58
TOTAL
18779.44
17305.02
30.5 Employee Benefits:
30.5.1 Short Term Employee Benefits:
30.5.1.1 Short Term Employee Benefits are recognized as an expense amount in the profit and loss account for the year in which related services are rendered.
30.5.2 Post Employment Benefits:
30.5.2.1 The Company makes contribution for Pension and Gratuity to KPTCL/ESCOM‟s Pension and Gratuity Trust. The same becomes a Multi-Employer Defined Benefit Plan. For employees who have joined the Company on or after 1.4.2006, the pension plan is Multi-Employer Defined Contribution Plan.
NOTE : 31 - FINANCIAL COSTS- INTEREST AND OTHER BANK CHARGES (NET)
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
31.1 Interest Expenses
31.1.1 Interest on Consumers' Security Deposits
31.1.1.1 Interest on ISD, ASD and MSD 78.6 1694.85 1559.65
31.1.2 Interest on power purchase dues
31.1.2.1 Interest on KPCL dues 80.1 5151.10 4049.03
74
Mangalore Electricity Supply Company Limited
NOTE : 31 - FINANCIAL COSTS- INTEREST AND OTHER BANK CHARGES (NET)
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
31.1.3 Interest on Loans
31.1.3.1 Interest on GOK Loans
31.1.3.1.1 Interest on Central Govt. Loan towards Power Sector Automation
78.101 10.91 15.01
31.1.3.1.2 Interest on PMGY Loan account
78.573 13.17 13.91
31.1.3.1.3 Interest on GOK Loan for energization of IP sets under GK Scheme
78.580 6.60 7.92
Sub- Total 30.68 36.84
31.1.3.2 Interest on REC loans
31.1.3.2.1 Interest on Loan from REC 78.540 82.62 107.13
31.1.3.2.2 Interest on APDRP-REC Loan payable to KPTCL
78.572 - 11.87
31.1.3.2.3 Interest on loan drawn by MESCOM from REC – APDRP works
78.591 21.40 21.95
31.1.3.2.4 Interest on loan drawn by MESCOM from REC – General
78.592 65.89 73.27
31.1.3.2.5 Interest on loan drawn by MESCOM from REC – RGGVY Works
78.593 87.58 66.38
Sub-Total 257.49 280.60
31.1.3.3 Interest on PFC loans
31.1.3.3.1 Interest on loan drawn from PFC for implementation of RAPDRP works
78.594 41.63 41.63
31.1.3.4 Interest on Loan from Commercial Banks
78.560 4938.00 3581.46
Total Interest on Loans
5267.80 3940.53
31.2 Other Borrowing Costs
31.2.1 Other Interest and Finance Charges
78.8 28.63 41.33
31.3 Applicable Net gain or loss on Foreign Currency Transactions
- -
31.4 Other Interest Charges
31.4.1 Interest on Income Tax 78.510 - -
Gross Finance Costs 12142.38 9590.54
75
Annual Report 2011-12
NOTE : 31 - FINANCIAL COSTS- INTEREST AND OTHER BANK CHARGES (NET)
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
31.5 Less : Interest and finance charges capitalised
31.5.1 Capitalisation of interest on funds used during construction
78.900 224.83 211.36
Total Finance Costs
11917.55
9379.18
31.6 Interest accrued but not due for the financial year 2011-12 in respect of long-term borrowing assigned by KPTCL to the extent of Rs 2.29 lakhs has been provided for as per KPTCL letter No. FA (A & R)/KCO 24/33470/2011-12 dated 28.04.2012.
NOTE :32 DEPRECIATION AND AMORTIZATION EXPENSES (NET)
(Rs. In Lakhs)
Sl. No.
Particulars Account
Code For the Year
2011-12 For the Year
2010-11
32.1 Depreciation on Fixed Assets
32.1.1 Depreciation on Lease hold Assets
77.110 0.37 0.37
32.1.2 Depreciation on Buildings 77.120 72.62 64.71
32.1.3 Depreciation on Hydraulic Works 77.130 9.40 9.12
32.1.4 Depreciation on Civil Works 77.140 1.14 0.90
32.1.5 Depreciation on Plant and Machinery
77.150 1015.29 854.06
32.1.6 Depreciation on lines, cable, network etc.,
77.160 4756.26 4153.83
32.1.7 Depreciation on Vehicles 77.170 5.07 2.18
32.1.8 Depreciation on furniture, fixtures 77.180 11.52 10.05
32.1.9 Depreciation on Office equipments
77.190 2.59 3.76
Total 5874.26 5098.98
32.1.10 Add : Depreciation under provided in previous years.
83.600 292.35 31.57
32.1.11 Less : Excess provision for Depreciation in prior periods
65.600 49.96 51.19
Depreciation on Fixed Assets 6116.65 5079.36
32.2 Depreciation on Released Assets
32.2.1 Depreciation on Released Good Asset- Plant and Machinery
77.151 12.73 12.82
32.2.2 Depreciation on Released Good Asset - lines. Cable, network etc
77.161 1.59 1.44
Sub-Total 14.32 14.26
Depreciation (Net)
6130.97
5093.62
76
Mangalore Electricity Supply Company Limited
NOTE : 33 OTHER EXPENSES
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
33.1 Repairs
33.1.1 Buildings 74.200 29.69 48.29
33.1.2 Plant and Machinery 74.100 511.64 528.38
33.1.3 Lines, Cable Net Work Etc. 74.500 741.01 753.70
33.1.4 Civil Works 74.3 21.04 7.06
33.1.5 Vehicles 74.6 20.29 18.54
33.1.6 Furniture and Fixtures 74.7 0.66 1.12
33.1.7 Office Equipments. 74.8 11.66 9.62
Sub-Total - Repairs 1335.99 1366.71
33.2 Power and Fuel
33.2.1 Electricity Charges 76.158 102.64 86.92
33.2.2 Fuel expenses for generators 76.161 0.99 0.23
Sub- Total 103.63 87.15
33.3 Rent
33.3.1 Rent (including lease rentals) 76.101 138.46 133.86
Sub- Total 138.46 133.86
33.4 Insurance
33.4.1 Insurance on Fixed assets - -
33.5 Rates and Taxes excluding Taxes on Income
76.102 18.61 7.76
33.6 Miscellaneous Expenses
33.6.1 Payment to Auditors
33.6.1.1 Payment to statutory Auditors 76.122
33.6.1.1.1 As Auditor ( Rs 110000 + Service Tax ) = 123596/
1.24 1.33
33.6.1.1.2 Taxation Matter ( Rs 40000 + Service Tax ) = 44944/
0.45 0.45
33.6.1.1.3 Reimbursement of Expenses 76.133 0.16 0.17
33.6.1.2 Payment to Cost Auditors
33.6.1.2.1 As Auditor ( Rs 50000 + Service Tax ) = 56180/
76.122 0.56 0.55
33.6.1.2.2 Taxation Matter - -
33.6.1.2.3 Reimbursement of Expenses - -
Sub- Total Payment to Auditors
2.41 2.50
77
Annual Report 2011-12
NOTE : 33 OTHER EXPENSES
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
33.7 Other A&G Expenses
33.7.1 Pagers cellular phones E-mail & other communication charges
76.111 1.83 2.42
33.7.2 Telephone, Trunk call, Telegrams and Telex Charges
76.112 65.21 51.65
33.7.3 Mobile Phone Charges 76.114 37.27 32.61
33.7.4 Postage 76.113 18.11 14.97
33.7.5 Revenue Receipts Stamps 76.115 0.01 -
33.7.6 Legal Charges 76.121 19.81 12.32
33.7.7 Consultancy charges 76.123 3.18 11.98
33.7.8 Other Professional charges 76.125 0.28 0.30
33.7.9 Remuneration to Contract Agencies for opening & maintenance of ledger Accounts
76.126 480.33 537.58
33.7.10 Remuneration Private Contractor engaged for shift and minor maintenance duties of stations/MUSS
76.127 66.21 63.66
33.7.11 Remuneration paid Chartered Accountants for auditing cash & Revenue Accounts
76.128 6.83 6.92
33.7.12 Remuneration paid Contract Agencies/ Services obtained
76.129 949.93 871.55
33.7.13 Remuneration paid to Grama Vidhyuth Prathinidhis
76.130 85.29 45.42
33.7.14 Conveyance expenses 76.131 0.24 0.41
33.7.15 Travelling expenses 76.132 1.35 2.28
33.7.16 Travelling allowance to employees
76.133 283.95 303.88
33.7.17 Travelling Allowance to Contract Employees
76.134 0.12 0.45
33.7.18 Vehicle hiring expenses for vehicles hired to stations
76.135 127.77 112.79
33.7.19 Vehicle running expenses other than store vehicles
76.136 88.56 81.33
33.7.20 Vehicle hiring expenses 76.137 199.13 172.86
33.7.21 Vehicle License, Registration fee and Taxes
76.138 9.23 13.23
78
Mangalore Electricity Supply Company Limited
NOTE : 33 OTHER EXPENSES
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
33.7.22 Shared expenses of MESCOM with KPTCL
76.140 0.50 5.53
33.7.23 Shared expenses of MESCOM with PCKL
76.141 30.23 18.96
33.7.24 Fees & Subscriptions 76.151 88.04 35.48
33.7.25 Books, periodicals and diaries 76.152 1.30 1.17
33.7.26 Printing & Stationery 76.153 57.63 60.77
33.7.27 Factory License Fees 76.154 10.00 10.00
33.7.28 Advertisement Expenses 76.155 39.24 37.49
33.7.29 Computer stationery and floppies 76.156 4.34 4.09
33.7.30 Contributions 76.157 13.00 7.98
33.7.31 Statutory payments as per Company Act, 1956
76.159 2.04 93.27
33.7.32 Water Charges 76.160 3.69 5.04
33.7.33 Entertainment 76.162 0.09 0.05
33.7.33 Secret service grant 76.164 0.60 0.60
33.7.35 Miscellaneous expenses 76.190 65.16 73.50
33.7.36 Consumer Relation/ Education 76.196 6.97 -
33.7.37 Material related expenses 76.2 43.47 33.74
Sub- Total 2810.94 2726.28
Sub - Total A&G Expenses 3074.06 2957.55
33.8 Other Debits
33.8.1 Asset Decommissioning Costs 77.500 7.11 8.26
33.8.2 Small & Low value items Written off
77.610 7.19 7.08
33.8.3 Losses relating to Fixed Assets 77.700 60.71 61.94
33.8.4 Bad & Doubtful Debts Written off / provided for
79.4 239.62 78.98
33.8.5 Miscellaneous losses and Write offs
79.5 43.03 70.42
Sub Total 357.66 226.68
33.9 Prior Period Expenses / losses :
33.9.1 Short provision for power purchased in previous years
83.100 - -
33.9.2 Operating Expenses of previous years
83.300 1.97 142.61
79
Annual Report 2011-12
NOTE : 33 OTHER EXPENSES
(Rs. In Lakhs)
Sl. No. Particulars Account
Code For the Year
2011-12 For the Year
2010-11
33.9.3 Employee costs relating to
previous years
83.500 29.28 193.40
33.9.4 Interest and other Finance
charges relating to previous
years
83.700 0.18 7.03
33.9.5 Short Provision for Income tax -
previous years
83.810 - 27.90
33.9.6 Administrative Expenses -
previous years.
83.820 0.50 12.80
33.9.7 Materials related expenses -
previous years.
83.840 - 4.09
33.9.8 Other Expenses relating to prior
periods
83.850 18.26 69.20
33.9.9 Prior Period Expenses relating to
purchase of power
83.860 762.61 481.43
Sub-Total 812.80 938.46
TOTAL
5580.50
5489.40
34 Disclosures required by Accounting Standards:
34.2 Segment Reporting:
34.2.1 Business Segment:
34.2.1.1 Electricity distribution is the principal business activity of the Company. There are no other activities which form a reportable segment as per the Accounting Standard – 17 „Segment Reporting.
34.2.2 Secondary Segment:
34.2.2.1 The operations of the Company are mainly carried out within the four revenue districts of Karnataka State namely, Dakshina Kannada, Udupi, Chickmagalur and Shimoga. Therefore geographical segments are not applicable.
34.3 Disclosure of transactions with Related Parties as required by the Accounting Standard – 18
34.3.1 In view of the paragraph 9 of AS 18, no disclosure is required as regards related party relationships with other state-controlled enterprises and transactions with such enterprises. Other disclosures as required under AS 18 are as given below:
80
Mangalore Electricity Supply Company Limited
34.3.2 Managerial Remuneration paid / payable for the financial year 2011-12 to the
directors are as follows:
Rs. in Lakhs
Particulars
Current Year
2011-12
Previous Year
2010-11
WHOLE TIME DIRECTORS
Salary and Allowances 24.84 16.45
Ex-gratia 0.06 0.06
Medical Expenses 0.01 0.86
Travelling Expenses 1.85 2.68
PART TIME DIRECTORS
Travelling Expenses 0.17 0.54
Sitting Fees 0.19 0.20
TOTAL 27.12 20.79
34.4 Earnings Per Share
Particulars 2011-12 2010-11
Profit after tax as per Accounts (For Basic and
Diluted Earnings Per Share) – (A) (Rs. in Lakhs) 641.19 170.10
Weighted Average number of shares outstanding
during the year for Basic and Diluted EPS – (B) 159110750 157339931
Basic and Diluted Earnings per Share (A/B) (in Rs.) 0.40 0.12
34.5 Taxation:
34.5.1 Current Taxation:
34.5.1.1 The provision for Minimum Alternate Tax (MAT) under Section 115 JB of Income Tax Act 1961 has been created in the Accounts.
34.5.2 Deferred Taxation:
34.5.2.1 The Company has not recognized Deferred Tax Asset / Deferred Tax Liabilities since there is no such requirement under ESAAR, 1985.
34.6 Estimated amount of capital works remaining to be executed as on 31.03.2012 in respect of Projects amounts to Rs. 11450.12 Lakhs.
81
Annual Report 2011-12
34.7 The details of amount outstanding to Small and Medium Enterprises based on available information with the Company is as under:
Rs. in Lakhs
Particulars As at 31st
March 2012 As at 31st
March 2011
Principal amount due and remaining unpaid - -
Interest due on above and the unpaid interest - -
Interest paid - -
Payment made beyond the appointed day during the year
- -
Interest due and payable for the period of the delay
- -
interest accrued and remaining unpaid - -
Amount of further interest remaining due and payable in succeeding Years
- -
35 Others:
35.1 The details of energy purchase, sale of energy and distribution losses during the year 2011-12 are as follows:
Particulars Units For the year
2011-12 For the year
2010-11
Energy at MESCOM‟s interface point
Mus 4154.38* 3600.09
Total Sales Mus 3652.17** 3170.90
Distribution Loss Mus 502.21 429.19
Distribution Loss % 12.09 11.92
(*)includes wheeled energy of 81.96 Mus; (**) includes wheeled energy of
81.96 Mus & Un billed energy of 47.63 Mus
Increase in the Distribution loss for FY 2011-12 compared to FY 2010-11 is
because of change in the method of computation of T&D Loss. For FY 2011-12
the T&D Loss is being calculated considering the sales of same month DCB
whereas, earlier to this, sales of next month DCB were considered. The
distribution loss for FY 2010-11 in the changed method would be 12.99%. The
open access consumption of M/s. VISL Bhadravathi is increased from 6.34 MU
in FY 11 to 63.21 MU in FY 12. The increase of 220 MW of connected load is
not matched with the similar addition of new sub-stations.
82
Mangalore Electricity Supply Company Limited
35.2 Considering the financial implications involved, insurance of fixed assets or
current assets is not done as it is not economical.
35.3 Transferring the name in the title deeds of properties transferred from KPTCL
is under progress.
36 Contingent Liabilities:
36.1 The Company was subjected to EPF Inspection during the year 2006-07 and
thereby a demand of Rs 4.44 Crores was raised on the Company towards the
dues for EPF of Contract Employees. The Company has disputed the same in
view of the error in calculation of demand and also with regard to applicability
of the regulations to contractors‟ employees. A deposit of Rs 1.77 Crores has
already been made with the EPF department and the case has been remitted
to PF Office Mangalore for hearing once again. The Company is hopeful of a
positive outcome on the said issue. No provision has been made in the
accounts for the disputed demand.
36.2 The appeal No. ITA/1118/Bang/09 AY 2006-07 preferred by MESCOM against
the order CIT(A) Mangalore in respect of disallowance of 80 IA claim of
MESCOM relating to AY 2006-07 is pending before Hon‟ble ITAT Bangalore.
The Hon‟ble ITAT has taken up the issue for hearing in FY 12. The demand
raised in respect of above issue on the disallowance of appeal of CIT(A) was
paid. However the AO has reopened the assessment under section 148 and
made additional demand of Rs. 1,92,33,759/- . Out of this an amount of Rs.
96,16,880/- was paid on 08.05.2012 and stay is subsisting for the remaining
50% of the demand.
The company is hopeful of a positive outcome on the Appeal.
36.3 The Commissioner of Central Excise and Service tax, Mangalore has passed
two orders bearing No. C.No. IV/09/114/2010 Hqrs. Adjn 1/2295 on
28.01.2011 and order No. IV/09/114/2010/Hqrs Adj(1)/17109 dated 26.10/2010
for Rs. 6,37,250/- and for Rs. 85,53,406/- which includes service tax of
Rs. 3,18,625/- and Rs. 42,76,703/- respectively and penalty of Rs. 3,18,625/-
u/s. 76 and penalty of Rs. 42,76,703/- u/s. 78 respectively excluding penalty
u/s. 77 and rule 7(c). Further interest amount u/s. 75 has not been quantified.
These orders have been passed in respect of service tax on Goods transport
Agency Service since 2005 being not paid to the Department. The Company
has got stay against the demand raised by the department from CESTAT
Bangalore.
36.4 The table given below indicates the number of pending cases before various
authorities and courts as on 31.03.2012and corresponding amount involved
in it.
83
Annual Report 2011-12
Particulars No. of pending
cases Amount involved in
lakh Rupees
Revenue 36 313.18
Labour 41 15.72
Miscellaneous 214 206.80
Total 291 535.70
There may be contingent liability for the said amount if the cases are not
decided in favour of MESCOM.
36.5 M/s. UPCL, a major IPP with an installed capacity of one unit of 600 MW was
Commissioned on 11.11.2010. The generator is claiming tariff at GoK
approved tariff of Rs. 3.127/Kwh, on the total energy including Auxiliary
consumption and deemed generation (D.G), whereas, MESCOM is admitting
bills for the energy exported-import energy at 8.33% of Karnataka Share of
90% as per clause 2(b) of PPA dated 26.12.2005 at the tariff rate of
3.127/Kwh. The Deemed Generation charges are admitted limiting the
charges to capacity charges only. As the energy generated by M/s. UPCL is
supplied not only to Karnataka but also to other State/s as such the tariff has to
be determined by CERC. M/s UPCL has filed the tariff petition on 14.12.2011
before CERC and the same is pending for disposal.
36.6 KPTCL had raised a demand at 26.23 paise per unit for the transmission of
electricity for the year 2006-07 against which the company has admitted the
bills at 19.42 paise per unit as per KERC order. However, KPTCL has
appealed against the order of KERC with Appellate Tribunal for Electricity,
New Delhi. The ATE has passed an order requiring KERC to carry out certain
modification in its transmission tariff. The KERC preferred an appeal against
the order of ATE at Hon‟ble Supreme Court, New Delhi. The appeal is pending
for disposal before the Hon‟ble Supreme Court. MESCOM may contingently
be liable for an amount of Rs. 19.74 Crs. if orders are passed in favour of
KPTCL.
37 In accordance with the provisions of Section 185 (2)(d) of the Electricity Act,
2003, all rules made under sub-section (1) of section 69 of the repealed
Electricity (Supply) Act, 1948 shall continue to have effect until such rules are
rescinded or modified. Accordingly, the accounting system is based on the
rules laid down under the Electricity (Supply) Act, 1948, since the modified
rules have not yet been notified under the Electricity Act, 2003.
38 The Balances in respect of Sundry Debtors, Sundry Creditors, Loans,
Advances to Supplies and other borrowings are subject to confirmation and
other reconciliation if any.
39 Balance with KPTCL and Other ESCOM‟s are subject to confirmation and
reconciliation.
84
Mangalore Electricity Supply Company Limited
40 The previous figures have been regrouped/ reclassified, wherever necessary
to conform to the current year presentation.
41 The companies Accounts that are approved by the Board on 24.07.2012 have
been revised in the light of observations made by the Comptroller and Auditor
General of India. The said revision has resulted in decrease in share capital
by Rs. 0.03 lakhs, increase in share deposit by Rs. 0.03 lakhs, increase in
reserves & surplus by Rs. 100.54 lakhs, increase in long term liabilities by
Rs. 4.18 lakhs, decrease in short term liabilities by Rs. 4.18 lakhs, decrease in
trade payables by Rs. 36.17 lakhs, decrease in other current liabilities by
Rs. 468.03 lakhs, tangible assets have been increased by Rs. 74.14 lakhs,
other non current assets decreased by Rs. 25.15 lakhs, trade receivables
decreased by Rs. 23.05 lakhs, other current assets decreased by Rs. 429.60
lakhs and total assets and liabilities are decreased by Rs. 403.66 lakhs.
Sd/-
(K. JAYARAMA ALVA) Financial Advisor
Sd/- (H. NAGESH)
Director (Tech) In terms of our Report of even date
for GANESH & SUDHIR
Sd/- (VIJAYANARASIMHA)
Managing Director
Place : Mangalore Date : 07.09.2012
Chartered Accountants Firm Reg. No: 000866 S
Sd/- GIRIDHAR KAMATH
Partner Membership No. 203199
85
Annual Report 2011-12
Statement showing sector wise capital expenditure for the year 2011-12
(Rs. In Lakhs)
Sl. No.
Particulars Account
code Budget
Allocation
Cost during
the year
Released Assets
issued to capital works
Net Capital Expendi
ture 1 System Augmentation &
Strengthening
a DTC Metering 14.152 4500.00 80.36 0.00 80.36 b Replacement of Electro- Mechanical
Meters by Static Meters 14.153 1000.00 211.14 2.29 208.85
c Auto-recloser & Sectionliser 14.156 23.40 23.40 d RLMS Works 14.157 550.52 20.13 -0.61 20.74 e Link lines, Re-conductering of HT,LT &
33 KV lines 14.167 5000.00 830.56 4.87 825.69
f Installation of Additional Transformers 14.168 1120.64 26.69 1093.95 g Universal Metering 14.351,
14.361
14.401
13.50 0.00 13.50
h Improvement- Others 14.150,
14.160
1000.00 1399.81 29.57 1370.24
i Tackling of High Loss High consumption Feeders & HVDS
14.169 3500.00 1146.90 22.99 1123.91
Sub-Total 15550.52 4846.44 85.80 4760.64 2 APDRP Works 14.143 0.00 3 R- APDRP Works 14.144 2300.00 41.63 0.00 41.63 4 Replacement of faulty distribution
transformers by similar capacities 14.170 1500.00 1484.10 1095.07 389.03
Replacement of faulty distribution transformers by higher capacities
14.171 34.56 16.85 17.71
5 Service Connection including promotor vanished layout works
a Service Connection 14.400 1500.00 1424.35 39.19 1385.16 b Promotor vanished layout works 14.142 83.31 1.91 81.40 Sub Total (a+b) 1500.00 1507.66 41.10 1466.56 6 Rural Electrication (General) a RGGVY 14.210 2500.00 1962.65 1962.65 b Electrification of Hamlets / Janatha
Colonies 14.302,
14.300
1500.00 380.12 1.00 379.12
c Energisation of IP sets (incl. providing infrastructure for regularization of un-authorised IP sets)
14.320,
14.326,
14.220
5000.00 526.45 21.44 505.01
d CWIP - Regularisation of unauthorised IP sets on or before 31.7.11
14.324 206.12 2.79 203.33
e Kutir Jyothi 14.350,
14.360
50.00 5.13 0.02 5.11
Sub Total (a+b+c+d+e) 9050.00 3080.47 25.25 3055.22 7 Tribal Sub-Plan a Electrification of Tribal Colonies /
Janatha Colonies 14.340,
14.341
66.70 74.35 0.53 73.82
b Energisation of IP sets 14.328 105.00 4.88 0.05 4.83 c Kutir Jyothi 14.362 7.78 0.24 0.13 0.11 Sub Total (a+b+c) 179.48 79.47 0.71 78.76 8 Special Component Plan a Electrification of S.C. Colonies / Janatha
Colonies 14.342 105.00 105.59 0.00 105.59
b Energisation of IP sets 14.329 150.00 5.55 0.17 5.38 c Kutir Jyothi 14.363 20.00 1.16 0.39 0.77 Sub Total (a+b+c) 275.00 112.30 0.56 111.74 9 Tools & Plants & Computers 14.600,
14.700
14.800
200.00 178.71 0.00 178.71
10 Civil Engineering Works 14.502 800.00 283.49 0.00 283.49 11 Construction of new sub stations & lines
(33KV) 14.110,
14.120
3500.00 1091.01 28.51 1062.50
GRAND TOTAL 34855.00 12739.84 1293.85 11445.99
86
Mangalore Electricity Supply Company Limited
STATEMENT SHOWING CAPITAL WORKS IN PROGRESS FOR THE YEAR 2011-12
(Rs.in Lakhs)
Account
Code Description
O.B. as on
01.04.2011 Incurred
Cate
gorised
C.B. as on
31.03.2012
14.110 CWIP - Transmission lines (G.P) 1989.72 112.07 2101.77 0.02
14.120 CWIP - Step Down Stations (GP) 250.35 946.29 713.02 483.62
14.126 CWIP - Step Down Stations - non plan 2.55 32.69 35.17 0.07
14.140 CWIP - Transmission Lines,
Transformer etc. - Extension (GP) 0.05 0.00 0.05 0.00
14.142 CWIP - Promoter vanished layouts -
11KV lines, Transformers, LT lines/ S.C
etc., (G.P)
9.33 103.72 100.94 12.11
14.143 CWIP - 11KV & below Distribution
works under APDP works 0.02 -0.02 0.00 0.00
14.144 CWIP - 11KV & below Distribution
works under RAPDRP works 41.62 41.63 2.97 80.28
14.150 CWIP - Transmission lines -
Transformers etc., Improvements (GP) 982.28 937.28 1347.99 571.57
14.152 CWIP-Improvements - DTC Metering 1.38 80.36 81.64 0.10
14.153 CWIP-Improvements - replacement of
electro mechanical meters by static
meters
143.13 211.20 262.85 91.48
14.156 CWIP- improvements - Auto -
reclosures & sectionalizers 0.00 22.32 16.83 5.49
14.157 CWIP- improvements - RLMS Workers 65.86 41.96 78.31 29.51
14.160 CWIP - Reduction of Losses in lines 684.75 652.11 997.72 339.14
14.167 CWIP- improvements - linklines &
reconductering of HT, LT& 33kv line 523.66 834.02 952.51 405.17
14.168 CWIP- installation of additional
transformers 301.85 1136.23 1030.97 407.11
14.169 CWIP- tracking of high loss high
consumption feeders & HVDS 259.89 1141.25 1032.99 368.15
14.170 CWIP - Replacement of distribution
Transformers by similar capacities 127.71 1480.55 1471.03 137.23
14.171 CWIP - Replacement of Transformers
by higher capacities 3.93 34.56 32.42 6.07
14.200 CWIP - REC Plan Schemes 0.16 16.84 16.97 0.03
14.210 CWIP - RGGVY 68.43 1412.92 1389.33 92.02
14.220 CWIP - SPA Schemes 5.75 2.43 -0.13 8.31
14.300 CWIP - Village Electrofication (G.P) 95.07 47.02 98.97 43.12
14.302 CWIP - Electrification of Hamles and
Tandas (G.P) 139.93 324.95 266.85 198.03
14.320 CWIP - Power Supply to IP sets (G.P) 443.17 547.12 770.23 220.06
14.324 CWIP - Regularisation of unauthorised
IP sets on or before 31.7.11 0.00 206.11 79.32 126.79
14.325 CWIP - Power Supply to IP sets under
O.Y.T Scheme 0.21 0.00 0.21
14.326 CWIP - Regularisation of unauthorised
IP sets under O.Y.T Scheme 0.28 0.00 0.28
14.328 CWIP - Energization of IP sets under
Tribal Sub-Plan 1.04 4.46 5.51 -0.01
14.329 CWIP - Energization of IP sets under
Special Component Plan 1.81 5.53 3.75 3.59
14.340 CWIP - Tribal Area Electrification (G.P) 70.86 9.65 58.12 22.39
87
Annual Report 2011-12
STATEMENT SHOWING CAPITAL WORKS IN PROGRESS FOR THE YEAR 2011-12
(Rs.in Lakhs)
Account
Code Description
O.B. as on
01.04.2011 Incurred
Cate
gorised
C.B. as on
31.03.2012
14.341 CWIP electrification of tribal colonies
under Tribal sub-plan 27.04 56.96 42.84 41.16
14.342 CWIP electrification of SC colonies
under Special Component plan 14.35 76.89 48.66 42.58
14.350 CWIP - Bhagya Jyothi Schemes 16.36 0.59 -0.05 17.00
14.360 CWIP - Kuteera Jyothi Schemes 0.00 4.32 3.03 1.29
14.362 CWIP - Metering of existing K.J
Installation under TSP 0.00 0.24 0.15 0.09
14.363 CWIP - Metering of existing K.J
Installation under SCP 0.00 0.55 0.31 0.24
14.400 CWIP - Service Connections 577.03 1437.28 1370.09 644.22
14.401 CWIP - Metering of I.P sets pf 10 HP
and below 0.00 0.03 0.00 0.03
14.502 CWIP - Buildings 116.55 294.47 300.66 110.36
14.607 CWIP - Vehicles 0.00 12.55 12.55 0.00
14.708 CWIP - Furniture and Fixtures 0.89 10.29 10.85 0.33
14.809 CWIP - Office equipment 1.71 35.13 28.95 7.89
14.810 CWIP - Tools and Tackles 31.78 119.75 103.58 47.95
14.811 CWIP - Mobile Phones 0.12 0.98 1.02 0.08
14.902 CWIP - expenditure categorised-APDP
11kv distribution works 0.00 0.00 0.00 0.00
14.911 CWIP - Provision for ongoing works 2309.58 304.57 0.00 2614.15
TOTAL 9310.20 12739.85 14870.74 7179.31
,,
STATEMENT OF MATERIAL STOCK ACCOUNT
(Rs. in lakhs)
Sl. No.
Account Head
Particulars
As on 31.03.2012
As on 31.03.2011
A Opening Stock 1485.10 1436.37
B R E C E I P T S
1 Material Purchases 10085.82 7564.00
2 Material inward - Others 3191.31 1850.00
TOTAL RECEIPTS 13277.13 9414.00
C OPENING STOCK + RECEIPTS 14762.23 10850.37
D I S S U E S
1 Material issued capital 7363.04 6604.84
2 Material issues (O&M) 1163.35 1009.57
3 Material Outward - Others 3187.39 1750.86
TOTAL ISSUES 11713.78 9365.27
E CLOSING BALANCE OF STOCK (C-D) 3048.45 1485.10
88
Mangalore Electricity Supply Company Limited
Statement showing the details of source-wise power purchase cost
Sl. No.
Particulars
2011-12 2010-11
Energy (Mus)
Cost (Rs. in Crs.)
Energy (Mus)
Cost (Rs. in Crs.)
1 Hydel Power 1457.55 68.92 1146.30 90.50
2 Thermal Power 1656.46 490.55 1461.05 379.24
3 Lignite Power 231.77 86.42 226.06 44.94
4 Atomic Power 124.66 36.91 93.05 27.29
5 Conventional Energy 305.75 182.38 197.33 101.93
6 Non Conventional Energy 369.41 121.72 361.53 114.86
7 Wind Mill energy 235.67 82.94 126.45 43.12
8 UI Charges 10.84 2.10 53.77 7.66
9 High Cost Energy 336.30 178.93 631.85 313.84
10 Transmission charges - 167.42 - 130.95
11 Energy Balancing Adjustments -516.78 -144.36 -531.79 -151.91
12 Other Charges (Trading margin charges, open access charges, SLDC charges, PCKL charges)
6.29 2.32 - 1.18
Total 4217.92 1276.25 3765.60 1103.60
COST OF POWER AT DIFFERENT POINTS
Sl.
No. Particulars
2011-12 2010-11
Energy
(MU)
Amount
(Rs. In Crs)
Rate per
unit (in
Rs.)
Energy
(MU)
Amount
(Rs. In
Crs)
Rate per
unit
(in Rs.)
1 At Generation Point 4217.92 1276.25 3.03 3765.60 1103.60 2.93
2 At Interface Point 4072.42 1276.25 3.13 3600.09 1103.60 3.07
3 At Consumer Point 3570.21 1276.25 3.57 3170.90 1103.60 3.48
4 Delivered cost of power to
consumer (Excluding
ROE)
3570.21 1702.49 4.77 3170.90 1476.89 4.66
89
Annual Report 2011-12
Collection Efficiency as per DCB
Category
Collection Efficiency (in %)
2010-11 2011-12
LT 1 70.26 63.07
LT 2 99.48 98.40
LT 3 100.28 99.04
LT 4 110.29 91.90
LT 5 99.92 99.67
LT 6 69.69 59.95
LT 7 110.30 104.27
HT 97.99 94.16
Misc. 100.00 100.00
Total 99.54 93.62
Metered and Un-metered Energy:
Category
Category Energy Sales in M.U
2010-11 2011-12
Metered Un-
metered Total
% of
Energy
Sales
Metered Un-
metered Total
% of
Energy
Sales
LT 1 34.74 5.250 39.99 1.26 41.38
41.38 1.16
LT 2 935.11
935.11 29.49 1009.03
1009.03 28.26
LT 3 238.07
238.07 7.51 259.75
259.75 7.28
LT 4 573.44 210.280 783.72 24.72 1066.85
1066.85 29.88
LT 5 132.11
132.11 4.17 135.47
135.47 3.79
LT 6 130.25
130.25 4.11 142.05
142.05 3.98
LT 7 41.24
41.24 1.30 20.15
20.15 0.57
HT 870.40
870.40 27.45 895.53
895.53 25.08
Total 2955.374 215.530 3170.90 100.00 3570.21 0.00 3570.21 100
0
20
40
60
80
100
120
Pe
rce
nta
ge
Category
Collection Efficiency: FY 12
2010-11
2011-12
90
Mangalore Electricity Supply Company Limited
Consumer Profile
Category
Consumer Base
2010-11 2011-12
Installa tions in
nos. %
Installa tions in
nos. %
2010-11 2011-12
LT 1 166350 9.49 180560 9.83
LT 2 1175676 67.10 1221097 66.48
LT 3 154299 8.81 159818 8.70
LT 4 204603 11.68 220728 12.02
LT 5 20071 1.15 21310 1.16
LT 6 22477 1.28 23206 1.26
LT 7 7546 0.43 8964 0.49
HT 1113 0.06 1225 0.07
Total 1752135 100.00 1836908 100.00
Revenue Demand
Category
Revenue Demand as per DCB
2010-11 2011-12
Rs. in Lakhs
% Rs. in Lakhs
%
LT 1 1470.12 1.06 1844.26 1.11
LT 2 31968.41 23.02 37742.08 22.82
LT 3 16640.69 11.98 19298.92 11.67
LT 4 24420.36 17.58 33940.48 20.52
LT 5 6804.54 4.90 7502.35 4.54
LT 6 6938.79 5.00 8073.12 4.88
LT 7 4278.12 3.08 2326.96 1.41
HT 45797.16 32.97 54213.57 32.77
Misc. 582.26 0.42 469.66 0.28
Total 138900.45 100.00 165411.40 100.00
0
200000
400000
600000
800000
1000000
1200000
1400000
No
. o
f In
sta
llati
on
s
Category
Consumer Base: FY 12
2010-11
2011-12
0
10000
20000
30000
40000
50000
60000
Ru
pe
es in
La
kh
s
Category
Revenue Demand: FY 12
2010-11
2011-12
91
Annual Report 2011-12
Revenue Collection
Cate gory
Revenue Collection as per DCB
2010-11 2011-12
Rs. in Lakhs
% Rs. in Lakhs
%
2010-11 2011-12
LT 1 1032.96 0.75 1163.25 0.75
LT 2 31801.63 23.00 37137.69 23.98
LT 3 16687.08 12.07 19113.44 12.34
LT 4 26933.91 19.48 31190.03 20.14
LT 5 6799.12 4.92 7477.39 4.83
LT 6 4835.58 3.50 4840.08 3.13
LT 7 4718.67 3.41 2426.28 1.57
HT 44874.95 32.46 51047.86 32.96
Misc. 582.26 0.42 469.66 0.30
Total 138266.16 100.00 154865.68 100.00
Closing Balance
Cate gory
Closing Balance as per DCB
2010-11 2011-12
Rs. in Lakhs
% Rs. in Lakhs
%
LT 1 1868.32 5.65 2549.34 5.84
LT 2 1881.33 5.68 2485.72 5.70
LT 3 367.95 1.11 553.43 1.27
LT 4 15698.79 47.44 18449.24 42.28
LT 5 234.83 0.71 259.79 0.60
LT 6 12125.70 36.64 15358.74 35.20
LT 7 -1175.14 -3.55 -1274.46 -2.92
HT 2091.34 6.32 5257.05 12.05
Misc. 0.00 0.00 0.00 0.00
Total 33093.13 100.00 43638.85 100.00
-5000
0
5000
10000
15000
20000
Ru
pe
es in
La
kh
s
Category
Closing Balance: FY 12
2010-11
2011-12
0
10000
20000
30000
40000
50000
60000
Ru
pees i
n L
akh
s
Category
Revenue Collection: FY 12
2010-11
2011-12
92
Mangalore Electricity Supply Company Limited
Average Realization Rate From Sale of Power 2011-12
Account Head - LT Category Tariff
Account Code
No. of Consum
ers
Units Sold Average
Realization Rate per Unit (Ps.)
Opening balance as on
01.04.11
Revenue Demand as per
DCB (in lakhs)
Net provision for
unbilled revenue (in
lakhs)
Provision for withdrawal of revenue (in lakhs)
Revenue Demand as per
Accounts (in lakhs)
Collection for the year 11-12 (in
lakhs)
Closing Balance (in lakhs)
Demand Series
Closing Balance Series
Units (MU)
% of Units Sold
BJ / KJ - Tariff subsidy LT - 1 61.402 28.626 122911 16.348 0.46 440.29 0.00 719.78 0.00 0.00 719.78 719.78 0.00 BJ / KJ LT - 1 61.101 23.101 57649 25.030 0.70 332.05 1278.84 817.68 13.43 0.00 831.11 308.20 1801.75 Dom. Ltg., Non-Dom, Non-Com Ltg and Govt. Hospital Ltd., Dom. Combined Ltg. (AEH), Non-Dom., Non-Coml. Comb. Ltg. & htg. Motive Power, & Govt. Hospitals for handicapped Orphans, aged & destitute & Pvt. Professional & other Pvt. Edu. Instns.
LT - 2a&b
61.110, 61.111
23.110, 23.111
1221097 995.980 27.90 359.29 2878.49 35460.59 322.85 -1.44 35784.88 35191.47 3471.90
Comml. Ltg. Heating & motive power
LT - 3 61.115 23.115 159818 259.750 7.28 705.99 876.73 18208.86 129.41 0.07 18338.20 18122.94 1091.99
Irrigation pumpsets, Lift Irrigation Schemes / Socities (upto & inclusive of 10 HP)
LT - 4a 61.119 23.119, 218349 1058.930 29.66 304.91 10275.13 37052.37 -4764.08 0.00 32288.29 30958.88 11604.54
Irrigation pumpsets, Lift Irrigation Schemes / Socities (above 10 HP)
LT - 4b 61.120 23.120 167 1.830 0.05 222.90 51.34 39.86 0.93 0.00 40.79 23.85 68.28
Private Horticultural Nurseries, Coffee, Tea, Coconut & Arecanut Plantations
LT - 4c 61.121 23.121 2212 6.090 0.17 285.16 710.52 171.75 1.91 0.00 173.66 118.48 765.70
Industrial, Non-Industrial Htf. & Motive Power including lighting
LT - 5a
to d
61.129, 61.130, 61.131, 61.133
23.129, 23.130, 23.131, 23.133
21310 135.470 3.79 525.67 482.41 7095.94 23.62 -1.70 7121.26 7097.22 506.45
Water Supply -Sewerage pumping - VP/TP & others
LT - 6a 61.125 23.125 13196 88.450 2.48 434.73 7068.60 3849.30 -4.07 0.00 3845.23 2441.32 8472.51
Public lighting - VP/TP & others
LT - 6b 61.126 23.126 10010 53.600 1.50 454.93 1958.92 2422.43 17.68 1.70 2438.41 1761.40 2635.93
Temporary Power Supply LT - 7 61.145 23.145 8964 20.150 0.56 1101.55 37.36 2134.77 76.96 -7.89 2219.62 2134.77 122.21 KPC 76 13.030 0.36 TOTAL OF LT 1835759 2674.658 74.92 388.09 25618.34 107973.33 -4181.36 -9.26 103801.23 98878.31 30541.26
93
Annual Report 2011-12
Account Head - LT Category
Tariff
Account Code
No. of Consu mers
Units Sold Average Realizatio
n Rate per Unit
(Ps.)
Opening balance as on
01.04.2011
Revenue Demand as per
DCB (in lakhs)
Net provision
for unbilled revenue (in lakhs)
Provision for
withdrawal of
revenue (in lakhs)
Revenue Demand as per
Accounts (in lakhs)
Collection for the
year 11-12 (in lakhs)
Closing Balance (in lakhs)
Demand Series
ClosingBalance Series
Units (MU)
% of Units Sold
Public Water Supply & Sewerage Pumping
HT - 1 61.250 23.250 57 77.640 2.17 431.07 958.49 3315.64 31.17 0.00 3346.81 2647.25 1658.05
Industrial, Non-Industrial, Non-Commercial and Railway Traction
HT - 2a 61.255 23.255 554 581.970 16.30 560.74 3996.84 32046.45 586.78 0.00 32633.23 30762.64 5867.43
Commercial HT - 2b 61.256 23.256 541 203.050 5.69 700.25 1127.11 13963.76 254.80 0.00 14218.56 13937.67 1408.00
Irrigation and Agricultural Farms, Private Horticultural Nurseries, Coffee and Tea and Arecanut Plantations.
HT - 3a&b
61.260 23.260 11 13.220 0.37 149.48 10.76 179.47 18.14 0.00 197.61 98.14 110.23
Residential Apartments and Hospitals.
HT - 4 61.271 23.271 62 19.650 0.55 474.24 59.29 925.19 6.70 0.00 931.89 904.65 86.53
TOTAL OF HT 1225 895.530 25.08 573.16 6152.49 50430.510 897.590 0.000 51328.10 48350.35 9130.24
TOTAL (LT + HT) 1836984 3570.188 100.00 434.51 31770.83 158403.84 -3283.77 -9.26 155129.33 147228.66 39671.50
Sundry debtors for electricity tax
1056.42 6108.73 0.00 0.00 6108.73 5899.63 1265.52
Misc. receipts from consumers (Interest)
9599.86 0.00 0.00 2373.25 1077.91 10895.20
Less : Revenue suspense account
-39.17 -15.82
Misc. receipts from consumers (Other than Interest)
818.46 818.46 818.46
Less : Provision for withdrawal of revenue demand
365.21 334.22
Less : Provision for doubtful dues from consumers
5082.98 5300.26
Less : Withdrawal of revenue demand
82.07 82.07
GRAND TOTAL 1836984 3570.188 100.00 434.51 37018.09 165248.96 -3283.77 -9.26 164347.70 155024.66 46213.56
94
Mangalore Electricity Supply Company Limited
Subsidy received from GOK in 2011-12 against the demand raised during 2011-12 towards Free Power Supply
to IP Sets having connected load upto 10 HP and to BJ/KJ consumers consuming upto 18 Units per month,
including Opening balance and Other arrears
(Rs. in lakhs)
Sl.
No. Particulars
No of Live Installations Consumption in Mus Opening
Balance as
on
01.04.2011
Demand Subsidy
released
for 2011-12
Balance
as on
31.03.2012 Metered Un-
Metered Total Metered
Un-
Metered Total Metered
Un-
Metered
Total bill
amount
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1 Power supply to IP Sets of up
to 10 HP (LT4a)
165989 52360 218349 685.172 373.759 1058.931 8334.67 21277.35 9525.98 30803.33 26188.00 12950.00
2 Power supply to BJ/KJ upto 18
Units per month per
Installations
103844 19067 122911 12.439 3.909 16.348 830.97 547.58 172.10 719.68 720.00 830.65
3 Amount refunded in respect of
IP Set payment made by
farmers from 01.04.2001 to
31.03.2003
0 0.000 3179.74 0.00 3179.74
4 ROR Subsidy
0 0.000 4847.86 0.00 4847.86
6 Gap to be paid by GOK as per
KERC Order
0 0.000 9550.00 0.00 4289.83 5260.17
TOTAL 269833 71427 341260 697.611 377.668 1075.279 26743.24 21824.93 9698.08 31523.01 31197.83 27068.42
95
Annual Report 2011-12
STATEMENT SHOWING CATEGORY WISE, AGE WISE DETAILS FOR THE ARREARS OUTSTANDING AS ON 31.03.2012
(Rs In Lakhs)
A/c Code (23 series)
Tariff Particulars Account
Head
Agewise analysis for Closing Balance
Less than one year
More than ONE year but less than
THREE years
More than THREE years but less than FIVE
years
More than FIVE years
Total (col. 5 to 8)
1 2 3 4 5 6 7 8 9
I.LT Category
23.1017 LT-1 BJ/KJ 61.1017 1565.07 241.16 391.79 412.42 2610.44
23.1107 LT-2A Domestic 61.1107 1768.58 190.25 236.20 73.39 2268.42
23.1117 LT-2B Educational Institutions 61.1117 14.81 0.86 0.39 0.05 16.10
23.1157 LT-3 Commercial 61.1157 526.96 25.40 49.35 12.80 614.51
23.1197 LT-4A IP Upto 10 HP 61.1197 1762.41 1670.63 9257.63 3827.21 16517.88
23.1207 LT-4B IP Above 10 HP 61.1207 54.44 14.06 19.48 10.88 98.86
23.1217 LT-4C Horticultural nurseries 61.1217 660.66 293.60 79.89 2.67 1036.82
23.1297 LT-5B(I) Industries-5HP&Below 61.1297 35.65 8.29 9.71 4.43 58.07
23.1307 LT-5B(II) Industries-Above 5 but below 40 HP 61.1307 101.09 14.87 8.65 3.29 127.89
23.1317 LT-5B(III) Industries- 40HP & above but below 67 HP 61.1317 56.16 4.09 3.45 3.92 67.62
23.1337 LT-5B(IV) Industries-67HP & above 61.1337 17.39 0.01 0.42 2.14 19.96
23.1257 LT-6A Watersupply 61.1257 6412.54 1834.24 2112.39 1261.37 11620.55
23.1417 LT-6B Streetlight 61.1417 2210.09 821.72 633.95 185.05 3850.81
23.1457 LT-7 Temporary 61.1457 8.92 0.15 0.10 0.03 9.21
TOTAL (LT) - A 15194.78 5119.33 12803.40 5799.64 38917.16
II.HT Category
23.2507 HT-1 Watersupply 61.2507 1385.09 106.39 50.19 12.22 1553.89
23.2557 HT-2A Industries 61.2557 33.42 2358.16 0.00 300.91 2692.49
23.2567 HT-2B Commercial 61.2567 42.78 0.00 0.00 1.64 44.42
23.2607 HT-3A Lift irrigation 61.2607 88.96 0.16 0.00 0.00 89.12
23.2717 HT4B Colony supply 61.2717 5.63 0.17 0.00 0.00 5.80
TOTAL (HT) - B 1555.87 2464.89 50.19 314.77 4385.72
GRNAD TOTAL - (A+B) 16750.66 7584.22 12853.59 6114.41 43302.88