25-12-12-gujarat urja vikas - english report 2011-12...for appointment as managing director, gujarat...

8thAnnual Report2011-12

GUJARAT URJA VIKAS NIGAM LIMITED

• Board of Directors ...................................................................................... 02

• Notice .......................................................................................................... 03

• Directors' Report ........................................................................................ 06

• C & AG Comments ....................................................................................... 24

• Auditors' Report ......................................................................................... 25

• Balance Sheet ............................................................................................. 30

• Profit and Loss Account ............................................................................. 31

• Cash Flow Statement ................................................................................. 32

• Significant Accounting Policies & Notes .................................................. 34

• Statement relating to Subsidiary Companies ........................................... 55

• Annual Reports of Subsidiary Companies

CONTENTS

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2



BOARD OF DIRECTORSShri D.J.Pandian,IAS Chairman

Shri L.Chuaungo,IAS Director

Shri R.N.Singh Director

Shri Bimal.N.Patel Director

Smt.Shahmeena Husain,IAS Director(Admn.)

Shri Mukesh Puri,IAS Managing Director (up to 2-7-2012)

Shri Raj Gopal, IAS Managing Director (from 2-7-2012)

DIG OF POLICE (SECURITY) :

Shri V.J.Gautam, IPS

COMPANY SECRETARY

Shri Parthiv Bhatt

SR. EXECUTIVES

BANKERS

UCO Bank Canara Bank 1. Shri K.M. Shringarpure

State Bank of India Allahabad Bank General Manager (F &A)

Bank of India Syndicate Bank 2. Shri K.P.Jangid

Central Bank of India Bank of Baroda General Manager(Comm.)

Union Bank of India Indian Overseas Bank 3. Shri Y.D.Brahmbhatt

Dena Bank Karur Vysya Bank I/c CE (Tech.)

Indian Bank

Vijaya Bank

STATUTORY AUDITORS COST AUDITORS

M/s S.C.Bapna & Associates. M/s. R. K. Patel & Co.

Chartered Accountants, Cost Accountants

Vadodara. Vadodara.

REGISTERED OFFICE SUBSIDIARY COMPANIES

Sardar Patel Vidyut Bhavan 1. Gujarat State Electricity Corp. Ltd

Race Course 2. Gujarat Energy Transmission Corp.Ltd

Vadodara - 390 007 3. Uttar Gujarat Vij Co. Ltd.

Phone: 0265-2310582-86, Fax: 0265-2337918 4. Dakshin Gujarat Vij Co.Ltd

web site : www.guvnl.com 5. Paschim Gujarat Vij Co. Ltd.

6. Madhya Gujarat Vij Co. Ltd.

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NOTICE TO SHAREHOLDERS

NOTICE is hereby given that the Eighth Annual General Meeting of the Members of Gujarat Urja Vikas

Nigam Limited will be held on Saturday, the 29th December,2012 at 5.00 p.m. at the Registered office

of the Company at Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390 007 to transact the

following business:

ORDINARY BUSINESS:

st1 To receive, consider and adopt the Audited Balance Sheet as at 31 March, 2012 and Profit &

Loss Account for year ended on that date along with notes forming part of the same and the

Reports of the Board of Directors, Statutory Auditors thereon along with Comments, if any, of

the Comptroller and Auditor General of India.

2. To appoint a Director in place of Shri Bimal Patel, who retires by rotation and is eligible for

reappointment

3. To decide the remuneration payable to Statutory Auditors appointed by the Comptroller and

Auditor General of India(C&AG), New Delhi for the financial year 2012-13.

SPECIAL BUSINESS:

4. To consider and if thought fit, to pass ,with or without modification(s),the following Resolution as

an Ordinary Resolution:

“RESOLVED THAT Shri Raj Gopal,IAS who was appointed as an Additional Director of the nd

Company effective from 2 July,2012, under section 260 of the Companies Act,1956 and who

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

reappointment , be and is hereby appointed as a Director (Continuing as Managing Director) of

the Company."

By Order of the Board

Date: 13 -12-2012 Parthiv Bhatt

Place: Gandhinagar Company Secretary

REGISTERED OFFICE :

Sardar Patel Vidyut Bhavan

Race CourseVadodara – 390 007

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NOTES:

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

APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF. A PROXY NEED NOT

BE A MEMBER OF THE COMPANY.

2. Proxies, in order to be effective must be received by the Company at its Registered Office not

later than 48 hours before the time for holding of the meeting.

3. Explanatory Statement pursuant to the provisions of Section 173(2) of the Companies Act,1956

is annexed hereto as Annexure to the Notice.

4. The Statutory Auditors M/s S.C.Bapna & Associates, Chartered Accountants, Vadodara were

appointed by the Office of the Comptroller and Auditor General of India (C & AG) for F.Y.2011-12

. M/s. S.C. Bapna & Associates, Chartered Accountants, Vadodara have been reappointed as

the Statutory Auditors of the Company for the financial year 2012-13 by the office of C & AG as

the Company continues to attract the provisions of Section 617 read with the provisions of

section 619 (2) of the Companies Act, 1956. As per the provisions of the section 224(8)(aa) of

the Companies Act remuneration of Statutory Auditors appointed by the C&AG of India shall be

fixed by the Company in General Meeting or in such manner as the Company in General

meeting may determine.

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ANNEXURE TO THE NOTICE :

Explanatory Statement pursuant to Section 173(2) of the Companies Act,1956

Item No. 4

thThe Government of Gujarat vide GAD Notification No. AIS/35.2012/20/G dated 27 June ,2012

placed the services of Shri Raj Gopal, IAS to the disposal of Energy and Petrochemicals Department

for appointment as Managing Director, Gujarat Urja Vikas Nigam Limited vice Shri Mukesh Puri, IAS

transferred. Further Energy and Petrochemicals Department,Govt. of Gujarat vide letter No. GUV-14-th

2012-1948-K dated 28 June,2012 directed GUVNL to take further necessary action for appointment

of Shri Raj Gopal, IAS as Managing Director of the Company in terms of the provisions of Articles of

Association of GUVNL. Accordingly Shri Raj Gopal,IAS was appointed as an Additional Director nd

pursuant to section 260 of the Companies Act,1956 and w.e.f. 2 July, 2012. He holds office as an

Additional Director up to the date of this Annual General Meeting(AGM). Shri Raj Gopal,IAS was also ndappointed as Managing Director of the Company w.e.f. 2 July,2012. On his appointment as Director at

this Annual General Meeting , he will continue to be the Managing Director of the Company.

Shri Raj Gopal is a senior IAS officer of 1987 batch. He has held various important positions in the

Government. He has long, rich and varied experience of administration in various areas. Your

Directors, therefore, recommend the resolution for your approval.

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

By Order of the Board

Date: 13 -12-2012 Parthiv Bhatt

Place: Gandhinagar Company Secretary

REGISTERED OFFICE :

Sardar Patel Vidyut Bhavan

Race Course

Vadodara – 390 007

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DIRECTORS’ REPORT

To,

The Members,

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

Accounts for the Eighth Financial Year ended 31 March, 2012.

FINANCIAL RESULTS:

The Company was operationalized w.e.f. Financial Year 2005-06. The Company has continued the efforts to sustain the performance and growth momentum over the years. The financial results of the F.Y. 2011-12 are as under:

Sr. [` in Lakhs]Particulars

No. 2011-12 2010-11

1 Total Turnover 2485600.65 2031505.69

2 Total Expenditure 2472302.95 2018935.95

3 Profit Before Tax 13297.70 12569.74

4 Provisions for Income tax -

- Current Year(MAT) 2720.00 2600.00

- Past Years 3848.35 2400.00

5 Profit After Tax 6729.35 7569.74

6 Carried forward loss of erstwhile GEB (52367.22) (59936.96)

7 Balance carried to Balance Sheet (45637.87) (52367.22)

Considering the total income of ` 2485601 Lakhs and total expenditure of ` 2472303 Lakhs, the Company has earned Profit Before Tax (PBT) of ` 13298 Lakhs as against ` 12570 Lakhs in the previous year. Since the Income Tax Act provides for payment of Minimum Alternate Tax (MAT) on book profit, a provision of 2720 Lakhs is made towards MAT liability (Previous Year 2600 Lakhs). In addition, on account of additional demand from the Income Tax Department in respect of Assessment Year 2009-10 due to disallowance of interest expenditure for A .Y. 2007-08 towards disallowance of other expenditure and for A Y 2008-09 towards disallowance of FBT expenditure, a provision of 3848 Lakhs is made to take care of these liabilities though the Company has contested these demands (Previous Year ` 2400 Lakhs). This leaves a Profit After Tax (PAT) of ` 6730 Lakhs as against ` 7570 Lakhs in the previous year.

Since the Company inherited a loss of ` 73724 Lakhs from erstwhile GEB, despite net profit for the 7 consecutive years, the Company has to carry forward a loss of 45637 Lakhs (Previous Year 52367 Lakhs).

SHARE CAPITAL:

During the year 2011-12, 60,82,00,000 no. of equity shares of 10/- each were allotted to Govt. of Gujarat against capital contribution to GUVNL for Capital Infusion in Subsidiary Companies / implementation of Govt. Schemes pursuant to various Govt. of Gujarat Resolutions. The paid up capital as on 31-03-2012 is ` 4551.80 Crores. The Authorized Capital of the Company has been increased from ` 5000/- crores to ` 10,000/- crores divided into 1000/- crore equity shares of ` 10/- each considering the future infusion of capital by the Govt. of Gujarat.

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SECTORAL PERFORMANCE :

This is the 7th year post operationalization of the Companies. The performance of GUVNL and its subsidiary companies (sector) as a whole has sustained momentum. The Sector continued various measures to improve the financial health as well as the internal efficiencies. Resultantly the Sector has recorded a profit after tax of Rs 62,376/- Lakhs for the year 2011-12 as against profit of Rs. 53,289 Lakhs for the year 2010-11 a rise of 17%. A summarized sectoral performance is given hereunder:

Sr. [` in Lakhs] Particulars No. 2011-12 2010-11

1. Total Turnover 2630441 2189462

2 Total Expenditure 2547083 2116179

3 Profit Before Tax 83358 73283

4 Provision for Income Tax :

Current 17132 17622

Past year 3848 2370

Wealth tax 2 2

5 Profit After Tax 62,376 53,289

DIVIDEND:

The company being in consolidation phase and having carried forward losses, your Directors do not recommend any dividend on Equity Shares for the financial year 2011-12.

INDUSTRY OVERVIEW :

Availability of quality power at reasonable rates is essential for sustained socio economic development. The economic growth of the country is very closely linked with that of Power Sector. However, being highly capital intensive in nature, mobilizing adequate financial resources at competitive cost for developing generation, transmission and distribution infrastructure has always been a challenge for the Power Sector; and this has been a major factor that contributed to less than required generation and transmission capacity addition in the Country. Although electricity generation has increased substantially in recent years, the demand for electricity in India is still substantially higher than the available supply. The data of Nation as a whole with respect to gap between demand and supply is given in following table:

Fiscal Energy Requirement Energy Availability Energy Shortage

Year (Million units) (Million units) (Million units) (%)

2007-08 737052 664660 72392 9.8

2008-09 777039 691038 86001 11.1

2009-10 830594 746644 83950 10.1

2010-11 861591 788355 73236 8.5

2011-12

(Up to November, 613869 569081 44788 7.3

Provisional)

Source: - Ministry of Power Annual Report 2011-12.

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POWER SUPPLY POSITION IN THE STATE :

The total generating capacity of the various sources at the beginning of the year 2011-12 was 13134

MW. The total installed power generating capacity in the state at the end of year 2011-12 is as under:-

IN MW

State Pvt Central Addition TotalPlants GSECL

Owned IPP Sector Sector during year Gujarat

Thermal 3720 750 2000 1605 1821 9896

Gas 729 466 2102 424 351 4072

Nuclear - - - 559 - 559

Hydro 547 - - 232 - 779

Total 4996 1216 4102 2820 2172 15306

During the year 2011-12, from Central Sector, one unit of Sipat Thermal Power Station Unit I and one

unit of Sipat Thermal Power Station Unit II was commissioned, out of which Gujarat’s Share is 180MW

each. Further, from Private IPPs, 135MW of M/s Aryan Coal Benefication (Gujarat’s Share 100MW),

800MW of Mundra UMPP – CGPL (Gujarat’s Share 361 MW), 660MW of APL Mundra (Gujarat’s Share

500MW) and 600MW of Essar Power Gujarat Ltd - Salaya (Gujarat’s Share 500MW) were

commissioned. Further, GSEG Expansion - Gas Based Project with capacity of 351MW was

synchronized during 2011-12.

The total installed capacity from non conventional energy sources at the end of 2011-12 was 3526 MW

as against 2116 MW in 2010-11, the details of which are as under :-

IN MW

Sr. Renewable Energy 2010-11 Addition during 2011-12

No. Source the year

1 Wind 2094 790* 2884

2 Solar PV 6 599 605

3 Biomass 10 21 31

4 Mini / Small Hydel 6 - 6

TOTAL 2116 1410 3526

* Note: Including Wheeling

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PURCHASE OF POWER :

For meeting the demand of power in the State, power is purchased from all the available sources. The details of power purchased during the years 2010-11 and 2011-12 is as under:-

Sr. No. Name of Agency 2010-11 (MUs) 2011-12 (MUs)

1 NPC 2998 3850

2 NTPC 13312 13642

3 SSNNL 562 680

TOTAL CENTRAL SECTOR (1 to 3) 16872 18172

4 GSEG 990 866

5 GIPCL – Stage II 819 652

6 GIPCL – SLPP 2304 2547

7 GMDC 991 712

8 GSECL 25164 25951

TOTAL STATE SECTOR (4 to 8) 30268 30728

9 ESSAR 1489 1375

10 GPEC 3587 3009

11 ADANI - Mundra Power Project 6168 9367

12 ACB India Ltd - 130

TOTAL IPPs (9 to 12) 11244 13881

13 Solar 2 164

14 Wind 1544 2325

15 Other Renewables 19 87

16 CPP & Others 523 470

TOTAL OTHERS (13 to 16) 2088 3046

TOTAL POWER PURCHASE 60472 65827

SALE OF POWER :

The bulk power purchased by GUVNL has been supplied to the Subsidiary Distribution Companies to meet their power requirement. The details of power supplied to subsidiary distribution companies and licensees during the year 2010-11 and 2011-12 are as under:-

Sr.No. Name of Licensee 2010-11 (MUs) 2011-12 (MUs)

1 DGVCL 12402 13359

2 UGVCL 16774 17933

3 PGVCL 22625 25041

4 MGVCL 8612 9466

5 Kandla Port Trust 41 28

TOTAL 60454 65827

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POWER TRADING BUSINESS DURING THE YEAR:

Owing to the substantial capacity addition, GUVNL has become power surplus. GUVNL has disposed of surplus power to other states to avoid the situation of keeping machine idle, to optimize power generation and to reduce overall power purchase cost. GUVNL has sold the surplus power through bilateral agreements as well as through Power Exchanges.

The power sold outside the state through bilateral arrangement and power exchanges during the year 2011-12 was 5815 MUs amounting to 2182 crores at an average rate of 3.75/unit as against 4191 MUs amounting to 1628 crores at an average rate of 3.88/unit during the year 2010-11.

SUPPLY / DEMAND SCENARIO :

The installed capacity from conventional sources in the State has increased from 13134 MW to 15306 th

MW at the end of 11 Five Year Plan (as on 31.3.2012) against the peak level demand of 11500 MW.th

Capacity to the tune of 10770 MW is planned to be added in 12 Five Year plan (out of which 1141 MW thhas already operationalised) and installed capacity would be doubled by the end of 12 Five Year Plan.

FORAY IN SOLAR POWER :

To encourage Renewable Energy and to address the concern of climate change & depleting fossil fuel reserve, GUVNL has initiated the steps to harness the clean and green energy. GUVNL has signed Power Purchase Agreements for 971.5 MW capacity in FY 2010-11. 6 MW capacity is commissioned in FY 2010-11. Total 690 MW capacity is commissioned up to August 2012 and balance is likely to be commissioned during FY 2012-13.

Asia’s largest Solar Park located at village Charanka in North Gujarat over a spread of 2000 hectare of barren land is envisaged with prospects of concentrated solar power generation capacity of 600 MW. In this endeavor 214 MW solar capacity has already been commissioned.

Venture in the direction of using technology for saving scarce water resources simultaneously with obtaining Solar energy in form of Canal based Solar Power Projects are being undertaken by the State Owned Company. This canal solar model will address two most pressing global challenges - energy security and water security. This is just a first step towards giving energy security for future generations by introducing ingenious means.

STATUS OF IMPLEMENTATION OF INTRA-STATE ABT :

Intra State ABT has already been operationalised with effect from 5.04.2010 pursuant to Hon’ble GERC Order dated 2.04.2010. Utilities are monitoring their generation/drawl schedules and any deviation from schedules is accounted for as Unscheduled Interchange (UI) and having financial implications individually. Gujarat State Load Despatch Centre is carrying out Energy Accounting and UI Accounting.

TRANSMISSION CHARGES :

GUVNL also pays for the transmission of the power within the State to Gujarat Energy Transmission Corporation (GETCO) which is the Company responsible for transmission of power. The transmission charges for transmission of power from the Central Sector Generating Stations through the Central Transmission Utility – PGCIL owned lines are determined by the Central Electricity Regulatory Commission and GUVNL is sharing the transmission charges in accordance with the methodology specified by the CERC under the Regulations for Terms & Conditions of tariff as amended from time to time.

`

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PROGRESS OF VARIOUS GOVT. SCHEMES :

I. ELECTRIFICATION UNDER TRIBAL AREA SUB-PLAN :

Electricity is a basic requirement for establishing the infrastructure in the developing economy

leading to socioeconomic transformation in the Rural Area. The Distribution Companies of

Gujarat Urja Vikas Nigam Ltd. undertake the work of Rural Electrification in the Tribal Areas

under Tribal Area Sub-Plan(TASP). The TASP scheme is financed by State Government for

electrification of villages and also extensive electrification of petaparas of the villages electrified

earlier. From the year 1998-99 Govt. is providing grant under this scheme for electrification of

petaparas and Agricultural wells. All inhabited tribal villages feasible for electrification have been

electrified along with 100% village electrification in the State.

Grant of 32200.00 lakhs was given to GUVNL for the year 2011-12 to electrify 11800 No of wells,

Electrification of 48 conversion villages and 150 No of petaparas, against this at the end of

March-12,13762 No of wells,146 No of petaparas were electrified and Electrification of 48

conversion villages was done for which total expenditure of 32200.57 lakhs was incurred, Thus

GUVNL has achieved 100% financial target under this scheme.

II. TRIBAL AREA SUB-PLAN (TASP) TRANSMISSION AND SUB STATIONS:

Electricity is basic requirement for establishing infrastructure in developing economy leading to

socio-economic transformation in Tribal rural area. In the tribal area such works are carried by the

Company through its transmission subsidiary company (GETCO) along with Normal Static Plan

work under TASP Scheme. For execution of the scheme grant is given by the State Govt.

The Transmission Company (GETCO), the subsidiary company of GUVNL, executes the

infrastructure work for development of the Tribal Area by creation of new substations with

associated lines, link lines for system improvement and addition of installed capacity of existing

substations.

During the Financial Year 2011-12 an amount of 16000/- lakhs was given as grant by the State

Govt. for creation of new sub-stations and associated lines, link lines for system improvement and

addition of installed capacity of existing substations under the Tribal Area Sub Plan (TASP). An

expenditure of `16023.45 lakhs is incurred in creation of 66 KV Sub-stations and transmission

lines in tribal areas of Gujarat. The financial target is achieved.

SUBSTATIONS COMMISSIONED

1 66KV Duttnagar (Bheskhetar) Dist - Bharuch

Commissioned on 05.11.11

2 66KV Balwada (Wagaldhara) Dist - Navsari


3 66KV GIDC-Vapi Ph.-II Dist - Valsad


4 66KV Kocharva (Rata-Koparli) Dist - Valsad


5 66KV Piprol(Pangarbari -Wilson Hill) Dist - Valsad


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6 66KV Vadoli Dist - Surat


7 66KV Palgam Dist - Valsad


8 66KV Sahuda Dist - Valsad


9 66KV Subir Dist - Dang


10 66KV Kathla Dist – Dahod


11 66KV Bhayla Dist – B.K.


12 66KV Vanar Dist - Vadodara


13 66KV Zagadiya Dist - Bharuch


14 66KV Vadpara (Naranpura) Dist – Tapi


15 66KV Sarbhon Dist – Surat


16 66KV Afwa (Dungar) Dist – Surat


17 66KV Lingad (Earthan) Dist – Surat


18 66KV Karjan Dist – Surat


Total 18 Nos. of Substations is commissioned.

(B) TRANSMISSION LINES COMMISSIONED

1 400 KV Asoj-Ukai LILO to Kosamba (2x32) - 27.168 CKM


2 220KV Ukai - Kosamba line - 43.52 CKM

3 220KV Kosamba- Mobha line - 48.5 CKM

(2x88.398)

4 66KV Songadh-Jamkhadi line - 22.0 CKM


5 66KV LILO to Vapi-Motapondha at Paria - 11.13 CKM

Commissioned on07.05.11

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6 66KV Santroad - Rajayata line, - 27.15 CKM


7 LILO of 66 KV Valia - Netrang at 66 KV Duttnagar - 1.2 CKM


8 66 KV LILO of Chikhali-Dungari at Balvada - 1 CKM


9 66KV Virampur - Bhayala - 7.3 CKM


10 66KV LILO at Vanar from 66KV Vasedi-Panwad - 9.2 CKM

line Commissioned on 09.06.11

11 66KV, S/C line using Single core, 300 Sq mm, - 0.4CKM

(3+1) XLPE power cable from 220 kV Zagadia

S/S to at the switch yard of M/s. Birla Century

GIDC Zagadia


12 66KV LILO to 66KV Erthan S/S from Vav-Vanz - 4.4 CKM

Sachin B


13 66 KV Ahwa-Saputara line - 25.9 CKM


14 66kV D/c line from Solar Site of M/s GIPCL, - 12 CKM

Mangrol to 66kV Mosali GETCO S/s


Total 240.8 CKM transmission line is commissioned

III. KUTIR JYOTI SCHEME

Gujarat Government is providing grant to give single point residential lighting connection in Tribal area free of cost. The BPL family or family whose annual income is less than Rs.36000 for urban area and Rs.27000 for Rural area is eligible to avail single phase lighting connection. The list of beneficiaries is to be prepared by project Officer for Tribal area and to be submitted to concern Distribution Company of GUVNL. Kutir Jyoti connection is given to the beneficiary house situated up to 100 meters from the existing Low Tension line. Beneficiary has to pay the energy bill. This Scheme is in operation from the year 1990-91.

Grant of Rs. 500.00 lakhs was given to GUVNL to electrify 14400 Nos.of Kutir Jyoti connection for the year 2011-12.Aagainst this at the end of March-12, 11953 Nos. of Kutir Jyoti connection were given at a cost of Rs.502.24 lakhs,Thus GUVNL has achieved 100% financial target under this scheme.

IV. ZUPADA VIJLIKARAN SCHEME

To meet the basic requirement of poor family of any caste located in Gujarat State, Government of Gujarat has sponsored Zupadpatti Scheme (Hutments). Under this scheme single phase

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Connections with one point wiring is being given free of cost with CFL bulb. The BPL family or family whose annual income less than Rs.36000 for urban area and ` 27000 for Rural area is eligible to avail Single phase lighting connection. The list of beneficiaries is to be prepared by District Social Welfare Officer/ Taluka Panchayat for rural area and Chief Officer/Municipal Commissioner for Urban area and to be submitted at concerned field office of DISCOM. List of beneficiaries is prepared at local level by above authority by collecting Registration fees. For rural area the beneficiaries have to pay Rs.50/- and for urban area the beneficiaries have to pay Rs.100/- as registration fees. The beneficiaries will have to pay energy bills for energy utilized regularly as per the company’s norms.

Grant of 6000.00 lakhs was given to GUVNL to electrify 52800 Nos. of house holds connection for the year 2011-12. Against this at the end of March-12,79248 Nos. of house holds connection were given at an expenditure of 6004.92 lakhs, thus GUVNL has achieved 100% financial target under this scheme.

V. SCHEDULED CASTE SUB PLAN SCHEME

For electrification of Schedule Caste Localities, State Govt. is allocating the fund as grant to GUVNL every year for implementing the program under schedule cast sub plan scheme. From the year 1998-99, this fund is being made available to GUVNL the electrification (including intensive electrification) is being carried out every year in the localities from where demands are coming.

A provision of ` 500.00 lakhs was made by the State Govt. for electrification of 10000 Nos. of house holds of SC beneficiaries. However due to non availability of sufficient beneficiaries the budgetary provision was revised to `175 lakhs to electrify 6000 house holds. Against this at the end of March-12, 7376 Nos. of house holds of SC beneficiaries were electrified at a cost of `210.89 lakhs, Thus GUVNL has achieved 100% Physical target under this scheme.

VI. SAGARKHEDU SARVANGI VIKAS YOJANA

Humidity and the saline atmosphere of the Coastal area cause corrosion of Conductors, corrosion of Poles, failure of Disk and Pin insulators, corrosion of Distribution Boxes, service lines, etc. which in turn affect the quality of power supply. Therefore to improve the infrastructure and uplift the life of the people living in the coastal belt, State Government has declared “Sagarkhedu Sarvangi Vikas Yojana” This Scheme is a 12 point Programme, Energy Development is one of them. This Scheme covers 12 Coastal Districts namely Valsad,Navsari, Surat, Bharuch, Anand, Ahmedabad, Jamnagar, Junagadh, Porbandar, Kutchh, Bhavnagar and Amreli comprising of 38 Talukas. Under this scheme activities such as Strengthening of Distribution line, Strengthening of Transmission Line with Replacement of Conductors, Erection of new 66 KV Substations are carried out. Due to these activities people residing in coastal belt get benefit such as noticeable reduction in line faults, availability of quality power supply at adequate Voltage, reduction in losses to the Industries in coastal area, reduction in accidents due to breakage of Conductors, reduction in Transformer failure and reduction in burning of electric motors, reduction in maintenance cost of lines, reduction in Transmission and Distribution losses.

During the year 2011-12, 23395.82 lakhs have been spent for strengthening of distribution line with replacing Conductors, poles, insulators, distribution boxes, service lines, etc, Strengthening of Transmission lines and creation of new 66 KV sub stations and electrification of new Ag wells from the contribution of 22048.00 lakhs received from the State Govt. in the form of equity share capital and grant.

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VII. JYOTI GRAM YOJANA

The Jyoti Gram Yojana (JGY) is a scheme by Government of Gujarat to make available three phase quality power supply for 24 hours to all the villages and their Hamlets for non agricultural activities while ensuring improved quality power supply to agriculture implemented in a record time of just 30 months! The scheme started in September 2003 and completed by March 2006. The scheme involved laying of a parallel rural distribution network across the state to separate agricultural consumers to facilitate load management and regulate agricultural consumption without affecting power supply to other consumers by laying 78,454 Kilometers of new lines , 2257 Nos of JGY Feeders, 18,724 nos of new transformer centers and 4530 Nos of Special Design Transformers have been installed. All 18000 villages are covered under the scheme with a total expenditure of ` 129029.72 lakhs out of which ` 111037.43 lakhs is the contribution from GOG. Thus all 18000 villages have benefited from the scheme.

VIII. RAJIV GANDHI VIDYUTIKARAN YOJANA (RGGVY)

Under this Central Government Scheme, Rural Electrification Corporation will provides 90% of the expenditure as grant and 1O% as soft loan to State Government. State Government has to provide analogous electricity to urban and rural areas. The financial assistance is provided for electrification of villages, petaparas. All Below Poverty Line families are covered under the scheme and they are provided electricity connection free of cost. Electrification of all beneficiaries includes one point wiring in the house with one CFL bulb. The beneficiaries have to pay the bills for energy utilized regularly as per the company’s norms. During the year 2011-12, 107159 BPL households have been electrified.

IX. RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND REFORMS PROGRAMME. (RAPDRP) UNDER XITH PLAN

The RAPDRP schemes are to be implemented in towns during XI Five year plan as per GoI order dated: 19.09.2008. The RAPDRP scheme is divided in to three parts i.e. Part-A, Part-B and Part C. The provision under RAPDRP for nation as whole, towards Part A is ` 10,000 Crs, Part B

th` 40,000 Crs and Part C ` 1177 Crs. during the 11 Five Year Plan. The nodal agency for implementing APDRP is Power Finance Corporation Limited - PFC, New Delhi.

The subsidiary companies of Gujarat Urja Vikas Nigam Ltd i.e. Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited ( MGVCL), Paschim Gujarat Vij Company Limited (PGVCL), Uttar Gujarat Vij Company Limited (UGVCL) are entitled for Part A and Part B.

z The part-A consists of converting existing system in to IT base, including consumer indexing, DTR metering etc. This part is to be implemented within 3 years to avail the benefit of loan as grant; otherwise it will be treated as loan only.

z Total scheme include Data center, Disaster Recovery center, Customer care center, GPS survey, Consumer Indexing, AMR for DTR&HT consumers,GPRS Modem, Hand Held quipment,Computers ,Printers, Servers for Data Center & disaster center , Server at sub division for AMR,Upgradation of existing Network, connectivity Softwares for new applications as mentioned above etc.

All the four DISCOMs viz. DGVCL, MGVCL, PGVCL and UGVCL have submitted their proposals for part A of RAPDRP to Nodal Agency for implementing RAPDRP - Power Finance Corporation

16



Ltd., Ministry of Power New Delhi on 10.02.2009 amounting to 30.81 Crores, 89.49 Crores (including Data and Disaster Recovery Center cost), ` 75.26 Crores and ` 35.11 Crores and sanctioned by M/S PFC respectively Amount of ` 68.00 Crores released by PFCL against total amount of ` 230.72 Crore under Part-A. Expenditure incurred under Part-A by end of 2011-12 is amounting to 34.025 Crore.

The Part-B consists of renovation, modernization and strengthening of 11 KV system including Reconductoring, load bifurcation, feeder separation, HVDS, Replacement of Electro Magnetic energy meters with tamper proof electronic meters along with strengthening of weak sub transmission system if required. The loan shall be converted to grant up to 50% if target of AT&C loss is achieved in the project areas and the project is completed within stipulated time; otherwise it will be treated as a part of central assistance to State.

The DPR of the Part – B projects were submitted by all DISCOMs viz. DGVCL, MGVCL, PGVCL and UGVCL amounting to 200.56 Crores, 102.73 Crores, 665.60 Crores and 24.62 Crores and sanctioned by M/s PFC ltd respectively. Amount of ` 130.94 Crores released by PFC Ltd. against total amount of 993.51 Crore under Part-B. Expenditure incurred under Part-B by end of 2011-12 is amounting to 155.23 Crore.

The Part C is to be implemented by MOP / PFC.

X. KISAN HEET URJA SHAKTI YOJANA ( KHUSHY- HVDS)

KHUSHY is a High Voltage Distribution System of installing smaller size of Distribution Transformers and thereby reduction of LT Lines up to negligible level by converting it into HV Line. In rural area the existing distribution systems consists of 11KV Lines with lengthy 3 Ph 4 wire LT lines. In this system, the Line Losses are very high; Voltage profile and reliability are also unsatisfactory.

To improve Voltage profile in rural area the small capacity of Distribution Transformers are to be installed by extending 11KV Line as nearer to the load as possible and Distribution Transformer of the capacity of 10, 16 KVA are erected and supply is released to consumer through a short length of LT Lines preferably through insulated overhead cables known as Aerial Bunched Cable (ABC)/PVC Cable.In Order to ensure pilferage free system, one of several remedial measures is reducing LT line (System) being exposed to theft. The whole idea is to have Less LT system and gradually move on to LT Less system. Even the short LT Lines are to be laid using ABC /PVC Cables.

During the year 2011-12, 10646 Nos. of small capacity transformers installed under KHUSHY at the expenditure of ` 154.18 Crores. (2260 Nos. of small capacity transformers installed under KHUSHY-Energy Conservation at the expenditure of ` 29.95 Crores.). With contribution from State Govt. of 154 Crores in the form of equity share capital and grant.

AWARDS/PRIZES :

The State of Gujarat and GUVNL and Subsidiary Companies received various awards/prizes for various achievements in the Energy Sector. The details are given hereunder.

ûSubsidiary Company PGVCL has won National Award for Excellence in Cost Management 2010 given by The Institute of Cost and Works Accountants of India on 18-07-2011

thûGovt. of Gujarat has won 5 Enertia Award 2011 under Category VIII: Top Investment & Infra Excellent State for Energy & Power given by Falcon Media on 14-10-2011.

` `

17



th ûSubsidiary Company GETCO has won 5 Enertia Award 2011 under Category III: Utilities and T&D Awards –Award for best performing Utility- State, given by Falcon Media on 14-10-2011.

ûSubsidiary Company PGVCL has won India Power Awards-2011 for Overall Utility Performance- Distribution- Non- Urban given by The Council for Power Utility, New Delhi on 24-11-2011

ûSubsidiary Company PGVCL has won India Power Awards-2011 for Innovative IT and Metering Application given by The Council for Power Utility, New Delhi on 24-11-2011

ûSubsidiary Company UGVCL has won India Power Awards-2011 for Woman in Power Sector (Mrs. Chhaya Desai, ACE, Sabarmati) given by The Council for Power Utility, New Delhi on 24-11-2011

ûGovt. of Gujarat has won Power Excellence Award 2011 for Excellence in Power Sector Reforms- Rating of Power Utilities 2011 – State owned given by Indian Chamber of Commerce, Kolkata on 28-11-2011

ûSubsidiary Company MGVCL has won National Award for meritorious performance 2009-10 for performance of Distribution Company given by Ministry of Power, New Delhi on 22-03-2012

ûSubsidiary Company GETCO has won National Award for meritorious performance 2009-10 for early completion of 220 kv Bhat Sub Station given by Ministry of Power, New Delhi on 22-03-2012

ûSubsidiary Company UGVCL has won National Award for meritorious performance 2010-11 for Performance of Distribution Company given by Ministry of Power, New Delhi on 22-03-2012

ûGovt. of Gujarat has won Power Line Award 2012 for most progressive State given by Power Line Publisher on 15-05-2012

stûSubsidiary Company MGVCL has won Power Line Award 2012 (1 ) for Best Performing State

DISCOM Award for outstanding performance in the India Power Sector given by Power Line Publisher on 15-05-2012

ûSubsidiary Company UGVCL has won Power Line Award 2012 (Runners up) for Best Performing State DISCOM Award for outstanding performance in the India Power Sector given by Power Line Publisher on 15-05-2012

rd thûSubsidiary Company GETCO (Rank 3 ) has won 9 National Award for excellence in Cost

Management-2011 for Excellence in Cost management-2011 (Catagory- Public sector - Large- Service Industry) given by The Institute of Cost Accountants of India

ûSubsidiary Company GETCO has won IPPAI Power Award-2012 for the Best power Transmission Company in the category of significant contribution of Power Transmission Company- State Transmission Companies as well as Private Transmission Companies given by Independent Power Producers Association of India on 24-08-2012

ûGovt. of Gujarat has won IPPAI Power Award-2012 for the Best performing State in the Power Sector given by Independent Power Producers Association of India on 24-08-2012

ûSubsidiary Company MGVCL has won India Power Awards-2012 for Overall Utility Performance- Distribution given by the Council for Power Utility, New Delhi

18



E-URJA PROJECT:

END-TO-END IT SOLUTION FOR GUVNL AND ITS SUBSIDIARIES

e-Urja, an end to end IT solution has been implemented in GUVNL and all its subsidiaries. Following major activities related to e-Urja have been carried out during this year 2011 – 2012.

1) Beehive mail messaging solution was implemented with the help of TCS in GSECL, GETCO and GUVNL on the existing servers as Oracle Collaboration Suite (OCS), a mail messaging solution which came bundled with e-Urja became obsolete.

2) Data storage capacity of PGVCL is enhanced by attaching OCS Storage space at e-Urja Datacenter.

3) Uptil now, our all company websites were outsourced for hosting and maintenance work which was causing some challenges. Also, websites are linked to e-Urja and R-APDRP applications involving e-Payment and customer care. For the first time, WEBSITES of GUVNL and its subsidiary Companies are hosted and maintained in-house.

4) e-Urja applications’ and Database Annual Technical Support (ATS) has been renewed directly from M/s. Oracle.

5) A capacity building sessions were held with the help of TCS for all implemented modules along with Database Administration Activity training to almost 167 employees in functional areas and around 87 IT employees in technology area identified from all subsidiary companies with an objective to handle certain aspect of the maintenance support independently.

6) E-Payment application was strengthened with more facilities like insta-pay, quick pay and payment online through ATP machines.

7) Network Intrusion Prevention System (NIPS) has been procured for installation in Datacenter of e-Urja project to protect the entire network against external threats and various other gateways.

8) Concerted efforts have been made by GUVNL ISMS team to cover all the desktops of GUVNL and its subsidiary companies under the umbrella of Domain so as to push Anti Virus updates and CA clients for managing inventory and better administration.

GETRI ACTIVITIES :

Gujarat Energy Training and Research Institute (GETRI) is an autonomous institute promoted by Gujarat Urja Vikas Nigan Limited and its group companies and registered under Bombay Public Trust Act. This institute has been established with a view to provide a platform for continuous development of employees by imparting various training, supported by research and documentation of best practices needed in the modern era.

The Institute aims at improving efficiency of all employees working in GUVNL and it’s Group Companies by Soft skill, Customer Care and Safety etc. and event/ programme on different important topics of Power Sector through In-house/ External Faculty at GETRI as well as at GEKC’s. Imparting systematic training and trying to create learning organization. So that employees working in different Group Companies can meet the need of modern organization and globalization. Thus GETRI is organizing various types of Training Programme Covering Technical Subjects, HR, Finance & Accounts, Commerce, IT/Computer

There are ten Gujarat Energy Knowledge Centers (GEKC) in all over Gujarat located at Surat , two in

19



Vadodara, Vallabh Vidhyanagar, Wanakbori (Power station), Sabarmati, Mahesana, Rajkot, Jamnagar and Porbandar where in training is imparted. Executive/ Officer and Staff including Union leader are also nominated for training/ Conference/ Seminar by external agency/ institution located in different part of India to upgrade their knowledge and broaden their out look

GETRI activities/achievements during Year 2011-12 are as under :-th*Induction Training of JE (VS) of GSECL was conducted first time at GETRI during 12

thDecember 2011 to 18 February 2012. Earlier JE(VS) were being sent to NPTI Faridabad for Induction Training

*One batch of Induction Training for newly recruited JE(VS) of GETCO, Three batched of Discoms & 4 batches of Induction Cum Refresher Training for JE(Regular) of DISCOMs was conducted.

*During the Year 2011-12 focus was changed from “Quantity” to add “Quality”. Soft Skill training was reduced drastically and more training was organized on technical topics (Generation, Transmission & Distribution), HR Matters, Legal Aspects, Power Trading, IT, Safety, Commerce, Finance and Accounts and yoga etc.

Training Details of 2011-12.

Sr. No. of Training No. of Employees No. of Man-dayTraining ParticularsNo. Programmes Trained Training

01 GETRI 583 15641 29716

02 External Training 313 1489 5897

03 Generation Training. (WTPS) 129 2722 9014

04 GEKC – (1-GETCO & 9-DISCOMs) 1113 28376 36154

05 Other in-house training 644 19205 23219

TOTAL 2782 67433 104000

*Total training man-days done during the period April 2011 to March 2012 stands to 29716 at GETRI which is much higher than 23135 man-days done during the previous year 2010-11.Total training man days achieved by GETRI & all companies during April 2011 to March 2012 is 1,04,000.

Total 5897 employees have been deputed for External Training in various reputed Institution slike ESCI, NPTI, ERDA, CPRI, HLTC, FICCI, FGI, BMA, Areva, ABB, ASCI, MSU, GERMI, PDPU, Parul Institute of Technology, SVIT etc

HUMAN RESOURCES :

The Company endeavors to provide an environment so that each employee is motivated to contribute his/her best to achieve the Company’s Goals/Objectives. The Company has taken series of proactive HR initiatives including need based training and development programmes with special emphasis on developing competencies of employees and thereby enhancing organizational effectiveness. The Industrial Relations remained cordial during the year.

STAFF WELFARE ACTIVITIES :

Employee Welfare plays an important role to cultivate the qualities of greater involvement and deeper unity amongst the employees and also works as motivation to the employees. The GUVNL has taken

20



utmost care and given ample importance in the field of welfare activities. Apart from Statutory Welfare Provisions, the Company has given due importance to the non-statutory welfare activities. A good number of welfare activities have continued to be handled in GUVNL even for subsidiary companies for the sake of synergy, coordination and functional needs. The number of staff welfare activities were carried out during the year like sports, AIESCB tournaments, Grant to Employees Organization for cultural programmes, Inter Company Music Competition, Inter Company Drama Competition, Loans to Cooperative Society, Staff Voluntary Retirement Cum death Benevolent Fund Scheme-II, Merit Awards to the employees and their family members for their bright performance in the field of Education, Sports and Fine Arts, Sports Complex at Vidyutnagar Colony, Vadodara, Gymnasium at Corporate Office, Colony and GETRI etc.

DIRECTORS :th

During the period under review, as per GAD Notification No. AIS/35.2012/20/G dated 27 June ,2012 issued by General Administration Department,Govt. of Gujarat and letter No. GUV-14-2012-1948-K

thdated 28 June, 2012 issued by Energy and Petrochemicals Department,Govt. of Gujarat, Shri Raj Gopal,IAS was appointed as an Additional Director pursuant to section 260 of the Companies

ndAct,1956 w.e.f. 2 July,2012. He holds office as an Additional Director up to the date of this Annual General Meeting(AGM) and is recommended for appointment as Director at the AGM. Shri Raj

ndGopal,IAS was appointed as Managing Director of the Company w.e.f. 2 July,2012 vice Shri Mukesh Puri,IAS as per aforesaid Govt. Notification. Shri Mukesh Puri,IAS resigned from the Board which was accepted by the Board w.e.f. 02-07-2012. The Board placed on record sincere appreciation for valuable contribution made by Shri Mukesh Puri,IAS during his tenure as Managing Director of GUVNL.

Shri Bimal Patel retire by rotation at the ensuing Annual General Meeting and is eligible for reappointment. It is proposed to reappoint Shri Bimal Patel as Director at the ensuing Annual General Meeting.

AUDITORS :

M/s S.C.Bapna & Associates, Chartered Accountants, Vadodara have been appointed as Statutory Auditors of the Company for F.Y. 2012-13 by the office of Comptroller & Auditor General of India, New Delhi. As per the provisions of Section 224(8)(aa) of the Companies Act, 1956, remuneration of Statutory Auditors appointed by C&AG is required to be fixed by the Company in General Meeting.

AUDITORS’ REPORT AND C&AG COMMENTS:

The notes to the accounts referred to in Statutory Auditors’ Report are self explanatory and therefore, do not call for any further comments pursuant to section 217(3) of the Companies Act,1956.

The Nil Comment certificate dated 22-11-2012 received from the Comptroller & Auditor General of India pursuant to Section 619(4) of the Companies Act,1956 is attached with this report.

COST AUDITORS:

The Government of India, Ministry of Finance has issued Cost Audit Order under Section 233B of the Companies Act, 1956 to appoint Cost Auditor to audit the Cost Accounting Records and Books of Accounts maintained by the Company in respect of Electricity Industry. Accordingly, the Board of Directors appointed M/s.R.K.Patel & Co, Cost Accountants, Vadodara as Cost Auditors for the Financial Year 2011-12 which was approved by the Central Government for auditing the Cost Accounts relating to Bulk Purchase and Sale of Electricity. The Cost Auditors prepared the cost audit report for

21



the Financial Year 2011-12. The Cost Audit Report which is due for filing by 31-12-2012 as extended by Ministry of Corporate Affairs will be filed by Cost Auditor with the Central Govt.(MCA Portal) within statutory time limit.

SUBSIDIARY COMPANIES:

The documents required to be attached to the Balance sheet of holding company and the statement referred to in sub section 3 of section 212 of the Companies Act,1956 shall be sent as an addendum forming part of this report in respect of following subsidiary companies.

1. Gujarat State Electricity Corp.Ltd.

2. Gujarat Energy Transmission Corp. Ltd.

3. Uttar Gujarat Vij Co.Ltd.

4. Dakshin Gujarat Vij Co.Ltd.

5. Paschim Gujarat Vij Co.Ltd.

6. Madhya Gujarat Vij Co.Ltd.

AUDIT COMMITTEE :

Pursuant to Section 292 A of the Companies Act, 1956, the ‘Audit Committee‘is presently constituted consisting of the following Directors.

1. Shri L.Chuaungo,IAS Chairman

2. Shri R.N.Singh Member

3. Shri Bimal Patel Member

4. Smt. Shahmeena Husain,IAS Member

The Audit Committee has, at its meeting held on 26-09-2012, reviewed and recommended Annual Accounts 2011-12 to the Board for approval which was approved by the Board.

DISCLOSURES:

(a) Particulars of Employees:

There was no employee during the year drawing remuneration in excess of the ceilings prescribed under the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975, as amended.

(b) Energy Conservation ,Technology Absorption and Research & Development:

Since the Company is engaged in power trading business, the provisions relating to above details are not applicable to the Company. However brief details of energy conservation measures taken through Discoms are given hereunder for information.

For the year 2011-12, a total budget provision of Rs. 3993/- lakhs was made under Energy Conservation Programme.

KHUSHY is a High Voltage Distribution System of installing smaller size of Distribution Transformers and thereby reduction of LT Lines up to negligible level by converting it into HV Line. In rural area the existing distribution systems consists of 11KV Lines with lengthy 3 Ph 4 wire LT lines, in this system, the Line Losses are very high; Voltage profile and reliability are also unsatisfactory.



To improve Voltage profile in rural area the small capacity of Distribution Transformers are to be installed by extending 11KV Line as nearer to the load as possible and Distribution Transformer of the capacity of 10, 16 KVA are erected and supply is released to consumer through a short length of LT Lines preferably through insulated overhead cables known as Aerial Bunched Cable (ABC)/PVC Cable. In Order to ensure pilferage free system, one of several remedial measures is reducing LT line (System) being exposed to theft. The whole idea is to have Less LT system and gradually move on to LT Less system. Even the short LT Lines are to be laid using ABC /PVC Cables.

During the year 2011-12, 10646 Nos. of small capacity transformers installed under KHUSHY at the expenditure of ` 154.18 Crores.( 2260 Nos. of small capacity transformers installed under KHUSHY-Energy Conservation at the expenditure of ` 29.95 Crores.) with contribution from State Govt. of 154 crores in the form of equity capital and grant.

(c) Foreign Exchange Earnings & Outgo:

During the year under review, there was no foreign exchange earning or outgo.

DIRECTORS’ RESPONSIBILITY STATEMENT :

In accordance with Section 217 (2AA) of the Companies Act, 1956, the Directors confirm that:st

1. in the preparation of annual accounts for the financial year ended 31 March,2012, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any.

2. accounting policies have been selected and consistently applied and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs

stof the Company as at 31 March, 2012 and of the profit of the Company for the year ended on that date;

3. 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, and

st4. the annual accounts for the financial year ended 31 March,2012 have been prepared on a ‘going concern’ basis.

ACKNOWLEDGEMENT :

Your Directors place on record their appreciation of the valuable guidance, support and assistance received from the Ministry of Power, Govt. of India, Government of Gujarat, GERC and other Central and State Govt. Authorities/Departments, Banks, Financial Institutions, GSFS, GPCL,GIPCL and for the valuable services rendered by the employees of the GUVNL and its subsidiary Companies.

For and on behalf of the Board

Date : 13 / 12 / 2012 D.J.PandianPlace : Gandhinagar Chairman

22

23



ADDENDUM TO DIRECTORS’ REPORT 2011-12

To,

The Members,

Gujarat Urja Vikas Nigam Ltd.

Documents of Subsidiary Companies.

As required by section 212 of the Companies Act,1956, the statement referred to in sub section 3 and the documents required to be attached to the Balance Sheet of holding Company are attached in respect of following Subsidiary Companies;

1. Gujarat State Electricity Corp.Ltd.

2. Gujarat Energy Transmission Corp. Ltd.

3. Uttar Gujarat Vij Co.Ltd.

4. Dakshin Gujarat Vij Co.Ltd.

5. Paschim Gujarat Vij Co.Ltd.

6. Madhya Gujarat Vij Co. Ltd.

For and on behalf of Board

D.J.PandianChairman

Date : 26 / 12 / 2012 Place : Gandhinagar

24



COMMENTS OF THE COMPTROLLER AND AUDITOR, GENERAL OF INDIA

UNDER SECTION 619 (4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS

OF GUJARAT URJA VIKAS NIGAM' LIMITED FOR THE YEAR ENDED 31 MARCH

2012.

The preparation of financial statements of Gujarat Urja Vikas Nigam Limited for the year ended 31

March 2012 in accordance with the financial reporting framework prescribed under the Companies

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

by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act, 1956 are

responsible for expressing opinion on these financial statements under section 227 of the Companies

Act, 1956 based on independent audit in accordance with the auditing and assurance standards

prescribed by their professional body the Institute of Chartered Accountants of India. This is stated to

have been done by them vide their Audit Report dated 26 September 2012.

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

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

Nigam Limited for the year ended 31 March 2012. This supplementary audit has been carried out

independently without access to the working papers of the Statutory Auditors and is limited primarily to

inquiries of the Statutory Auditors and company personnel and a selective examination of some of the

accounting records. On the basis of my audit nothing significant has come to my knowledge which

would give rise to any comment upon or supplement to Statutory Auditor's report under section 619 (4)

of the Companies Act, 1956.

For and on behalf of theComptroller & Auditor General of India

sd/-(Meera Swarup)

Accountant General(E & RSA); Gujarat

Place : Ahmedabad

Date : 22 / 11 / 12

25



AUDITOR’S REPORT

TO THE MEMBERS OF GUJARAT URJA VIKAS NIGAM LIMITED,VADODARA

1. We have audited the attached Balance Sheet of GUJARAT URJA VIKAS NIGAM LIMITED, stas at 31 March, 2012 and also the annexed Statement of Profit and Loss and the Cash Flow

statement of the Company for the year ended on that date. 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 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 misstatement. 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 financial statement

presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies

(Auditor’s Report) (Amendment) Order, 2004 issued by the Government of India in terms of

sub-section (4A) of Section 227 of the Companies Act, 1956 and on the basis of such checks of

the books and records of the Company as we considered appropriate and according to the

information and explanation given to us, we enclose in the Annexure a statement on the

matters specified in paragraphs 4 and 5 of the said order.

Further to our comments in the annexure 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 purpose of our Audit.

b) In our opinion, proper books of accounts as required by law have been kept by the Company so

far as appears from our examination of those books.

c) The Balance Sheet, Statement of Profit and Loss and the Cash Flow Statement dealt with by

this report are in agreement with the books account.

d) The Company being a Government Company, in view of the Notification No. GSR 829 (E) st

Dated 21 October, 2003 issued by the Government of India, the provisions of clause (g) of sub

section (i) of Section 274 of the Companies Act, 1956 are not applicable to the Company.

e) In our opinion the Statement of Profit and Loss, the Balance Sheet and the Cash Flow

Statement dealt with by this report comply with the Accounting Standards referred to in the

Section 211 (3c) of the Companies Act, 1956 and

S.C. BAPNA & ASSOCIATESCHARTERED ACCOUNTANTS

74-76, Gayatri Chambers, R.C. Dutt Road,

Near Railway Station, Alkapuri,

Vadodara (Gujarat) - 390005.

Ph. : 0265-2331056, 2334365

26



f) We invite attention without qualifying our report to note no. 27 of Financial Statement regarding

provisions of Custom Duty on purchase of power of ` 253.60 crores, on the basis of Hon’ble

GERC Order, we have relied upon the management’s representation that the custom duty shall

be payable as per order and may be recoverable from subsidiary distribution companies.

g) In our opinion and to the best of our information and explanation given to us, the said accounts

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 accepted in India:st

i) In the case of the Balance Sheet, of the state of affairs of the Company as at 31 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 the Cash Flow Statement, of the cash flow for the year ended on that date.

For S.C. Bapna & Associates Chartered Accountants Firm Reg. No.: 115649W

sd/-(S.C. Bapna)

PartnerM.No.71765

PLACE : GANDHINAGARDATE : 26/09/2012

27



ANNEXURE TO THE AUDITORS REPORT

Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Gujarat Urja

Vikas Nigam Limited on the Financial Statements as of and for the year ended March, 31, 2012.

1. a) The Company has compiled the fixed assets register in respect of Assets purchased /

constructed as well as Assets of erstwhile GEB transferred to the Company under the

Notification dated 03/10/2006 issued by the Government of Gujarat showing particulars

including quantitative details, except that certain details such as location, identification no. etc

of Fixed Assets are in the process of being updated.

b) As informed, the fixed assets have been physically verified by the management during the

current year. According to the information and explanation given to us, no material

discrepancies were found on such verification.

c) No substantial part of the fixed assets has been disposed off during the year.

2. The Company does not hold any inventory of goods. Accordingly sub-clauses (a), (b) & (c) of

clause (ii) are not applicable.

3. In our opinion and according to the information and explanations given to us, the Company has

not granted any loans secured or unsecured to companies, firms or other parties covered in the

register maintained under Section 301 of the Companies Act, 1956.

On the strength of a legal opinion obtained by the Company, it has represented that the provisions

of Section 299, 300 and 301 of the Companies Act, 1956 are not attracted to the transactions

entered in to by the company with its subsidiaries and are not liable to be listed in the register

maintained under Section 301 of Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate

internal control procedures / system commensurate with the size of the Company and the nature

of its business with regard to purchase of inventory, fixed assets and with regard to sale and

purchase of electricity. Further, on the basis of our examination of the books and records of the

Company carried out in accordance with the auditing standards generally prevalent in India, we

have neither come across nor have been informed of any continuing failure to correct major

weakness in the aforesaid internal control system.

5. The Company has entered into contracts / arrangements with Company / Companies being its

Subsidiary Company. As per the information and explanations given to us and based on the legal

opinion obtained by the Company, the transactions pursuant to these contracts and / or

arrangement are not falling under the provisions of Section 301 of the Companies Act, 1956 and

accordingly these transactions are not entered into the register required to be maintained under

Section 301 of the Companies Act, 1956.

6. In our opinion and according to the information and explanations given to us, the Company has

not accepted any deposits within the meaning of Section 58A, 58AA or any other relevant

provision of the Companies Act, 1956 and the rules framed there under.

S.C. BAPNA & ASSOCIATESCHARTERED ACCOUNTANTS

74-76, Gayatri Chambers, R.C. Dutt Road,

Near Railway Station, Alkapuri,

Vadodara (Gujarat) - 390005.

Ph. : 0265-2331056, 2334365

7. The Company has appointed an independent firm of Chartered Accountants as an internal

auditor with defined scope, which in our opinion is commensurate with the size of the Company

and the nature of its business.

8. The Central Government has prescribed maintenance of Cost records under Section 209(1) (d)

of the Companies Act 1956. The Company has appointed a firm of Cost Accountants for the

preparation of Cost Records. We have broadly reviewed the cost records and are of the opinion

that, prima facie, the prescribed records have been made and maintained.

9. According to the information and explanation given to us in respect of statutory and other dues:

a) The Company is generally regular in depositing undisputed statutory dues including

Provident Fund, Investor Education and Protection Fund, Income Tax, Wealth Tax, Service

Tax, Custom Duty, Cess and any other statutory dues with the appropriate authorities.

b) According to information and explanations given to us, no undisputed amount payable in

respect of such statutory dues were in arrears as at 31.03.2012 for the period of more than six

months from the date they become payable as on date.

c) According to the information and explanations given to us, there are no dues of Income Tax,

Wealth Tax, Service Tax, Customs duty and Cess, which have not been deposited on account

of any dispute except as under:

Sr. Nature of Nature of Amount Period Forum where

No. the Statute the Dispute (in ) dispute is

Pending

1 Bombay Stamp Duty 11,08,00,000 Demand Chief Controller of

Stamp Act on Mortgage Deed Pertaining to Revenue Authority, erstwhile GEB Gandhinagar

2 Income Tax Recomputed MAT 21,20,90,250 AY 2009-10 CIT (A), Baroda

Act, 1961 and interest u/s

234B & 234C

3 Income Tax Recomputed MAT 2,13,30,850 AY 2007-08 CIT (A), Baroda

Act, 1961 and interest u/s

234B & 234C

4 Income Tax Interest u/s 14,14,160 AY 2008-09 ITAT, Ahmedabad

Act, 1961 115WJ on FBT

10. The accumulated losses of the company are less than fifty percent of its net worth and the

company has not incurred cash losses during the current financial year or in the

immediately preceding financial year.

11. In our opinion and according to the information and explanations given to us the

Company has not defaulted in repayment of dues to a financial institution or bank or

debentures holders.

12. The Company has not granted loans and advances on the basis of security by way of

pledge of shares, debentures and other securities.

28



29



13. The provisions of any special statutes applicable to chit fund, nidhi and mutual benefit

funds / society are not applicable to the Company.

14. Based on examination of the accounts and as per the information and explanations given

to us, the Company is not dealing or trading in shares, securities, debentures and other

investment.

15. In our opinion, the terms and conditions on which the Company has given guarantees for

loans taken by subsidiary Companies from banks or financial institutions are not

prejudicial to the interest of the Company.

16. In our opinion, the term loans have been applied for the purposes for which they were

raised.

17. According to information and explanations given to us and on overall examination of the

balance sheet of the Company, we report that no funds raised during the year on short-

term basis have been used for long term investment and no long-term fund raised during

the year have been used to finance short-term assets except permanent working capital.

18. Based on a legal opinion obtained by the Company, the provisions of Section 301 of the

Companies Act, 1956 are not applicable to the Company. In view of the above, this clause

in respect of preferential allotment of shares is not applicable.

19. The liabilities under the bonds issued by the erstwhile GEB transferred to the Company

are secured by a guarantee given by Government of Gujarat.

20. The Company has not raised money by public issue during the year.

21. We have been informed that the vigilance department of the Company is regularly

investigating frauds and other irregularities involved in the Company’s transactions. To

the best of our knowledge and belief, and according to the information and explanations

given to us, no fraud on or by the Company has been noticed or reported during the year.

For S.C. Bapna And Associates

Chartered Accountants

Firm Reg. No.: 115649W

sd/-

(S.C. Bapna)

Partner

M.No.71765

PLACE : GANDHINAGAR

DATE : 26/09/2012

30



stBALANCE SHEET AS AT 31 MARCH, 2012 (` IN LAKHS)

stSr. NOTE AS AT 31 AS AT 31PARTICULARSNo. No. MARCH, 2012 MARCH, 2011I EQUITY AND LIABILITIES1 Shareholder’s Funds a Share Capital 2 455180.29 394360.29 b Reserves and Surplus 3 -20637.87 -27008.44

434542.42 367351.852 Share Application Money Pending Allotment 4 0.00 10000.003 Non Current Liabilities a Long Term Borrowings 5 35239.52 45347.37 b Other Long Term Liabilities 6 485.88 451.98 c Long Term Provisions 7 43204.16 43404.35

78929.56 89203.704 Current Liabilities a Short Term Borrowings 8 16428.67 49258.65 b Trade Payables 9 228392.77 212210.02 c Other Current Liabilities 10 337881.27 227836.72 d Short Term Provisions 11 12766.61 13921.94

595469.32 503227.33 TOTAL 1108941.30 969782.88

II ASSETS1 Non Current Assets a Fixed Assets 12 (i) Tangible Assets 5538.38 7573.44 (ii) Intangible Assets 1436.14 2184.01 b Non-Curent Investments 13 762813.18 731993.18 c Long Term Loans and Advances 14 157.55 123.37 d Other Non Current Assets 15 576.40 563.85

770521.65 742437.852 Current Assets a Current Investment 0.00 0.00 b Trade Receivables 16 10585.32 4344.70 c Cash and Bank Balances 17 11074.86 9030.98 d Short Term Loans and Advances 18 4927.27 4920.50 e Other Current Assets 19 311832.20 209048.85

338419.65 227345.03 TOTAL 1108941.30 969782.88Notes to the Financial Statements 29Significant Accounting Policies 1

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

For S.C.BAPNA & ASSOCIATESChartered Accountants D.J.PANDIAN, IAS RAJ GOPAL, IASFirm Reg. No.115649W Chairman Managing Director

S.C.BAPNA K. M. SHRINGARPURE PARTHIV BHATTPartner General Manager (F&A) Company SecretaryMembership No.71765

Place : Gandhinagar Place : GandhinagarDate : 26/09/2012 Date : 26/09/2012

st

stSTATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2012

(` IN LAKHS)

Sr. NOTE FOR THE YEAR FOR THE YEARPARTICULARS st No. No. ENDED 31 ENDED 31

MARCH, 2012 MARCH, 2011

I INCOME

a Revenue from Operations 20 2484362.80 2029911.32

b Other Income 21 1237.85 1594.37

TOTAL 2485600.65 2031505.69

II EXPENSES

a Purchase of Power 22 2429198.11 2004115.40

b Employees Benefits Expense 23 1931.95 1916.52

c Finance Costs 24 8519.80 10124.79

d Other Expenses 25 4469.86 1748.90

e Depreciation 2908.77 2895.83

TOTAL 2447028.49 2020801.44

III Profit Before Prior Period, Exceptional Items and 38572.16 10704.25

Tax

Net Prior Period Income 26 85.96 1865.49

IV Profit Before Exceptional Items and Tax 38658.12 12569.74

Exceptional Items 27 25360.42 0.00

V Profit Before Tax 13297.70 12569.74

VI Tax Expenses 28

a Current Tax 2720.00 2600.00

b Deferred Tax 0.00 0.00

c Previous Year’s Tax 3848.35 2400.00

VII Profit for the year 6729.35 7569.74

VIII Earning Per Share (in `)

a Basic 0.17 0.19

b Diluted 0.17 0.19

Notes to the Financial Statements 29

Significant Accounting Policies 1

st

31







stCASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31 , 2012 (` IN LAKHS)

Sr Year ended Year endedPARTICULARS st No 31 March , 2012 31 March , 2011

CASH FLOW FROM OPERATING ACTIVITIES

NET PROFIT BEFORE PRIOR PERIOD, EXCEPTIONAL 38572.16 10704.25

Adjustments For: Add / (Less) :-

Dividend Income (1160.75) (1160.62)

Assets Not in Use Written Off 4.94 20.69

Provision for Gratuity (2099.78) (163.42)

Provision for Leave Encashment 56.19 76.92

Depreciation 2908.77 2895.83

Interest and Financing Charges 8519.80 10124.79

Prior Period Income (Net of Expenses) 85.96 1860.25

Operating Profit Before Working Capital Changes 46887.29 24358.69

(Increase) /Decrease In Sundry Debtors (6240.62) 21814.74

(Increase) /Decrease In Loans & Advances (90018.55) (14000.32)

Increase /(Decrease) In Provisions (5880.27) (3320.40)

Increase /(Decrease) In Trade Payables and Other Liabilities 34277.80 37717.15

CASH GENERATED FROM OPERATIONS (20974.35) 66569.86

Less : Direct Tax Paid (1218.43) 5390.02

CASH FLOW FROM OPERATING ACTIVITIES BEFORE

EXCEPTIONAL ITEMS (19755.92) 61179.84

Less : Exceptional Items 25360.42 0.00

A. NET CASH FROM OPERATING ACTIVITIES (45116.34) 61179.84

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of Fixed Assets (Net) (131.11) (403.58)

Dividend Income 1160.75 1160.62

Investment in Subsidiary Companies (30820.00) (45021.25)

B. NET CASH FROM INVESTING ACTIVITIES (29790.36) (44264.21)

CASH FLOW FROM FINANCING ACTIVITIES

Share Application Money 0.00 10000.00

Issue of Equity Share Capital 50820.00 52825.97

(Repayment) / Proceeds From Borrowings 34650.38 (73384.67)

Capital Grant 0.00 358.78

Interest & Financing Charges Paid (8519.80) (10246.53)

st

ITEMS & TAX

32



C. NET CASH USED IN FINANCING ACTIVITIES 76950.58 (20446.45)

NET INCREASE IN CASH & CASH EQUIVALENTS (A+B+C) 2043.88 (3530.82)

CASH AND CASH EQUIVALENT AS AT 1-4-2011 (OP.BAL) 9030.98 12561.80

CASH AND CASH EQUIVALENT AS AT 31-3-2012 (CL.BAL) 11074.86 9030.98

CASH AND CASH EQUIVALENT AS AT 31.03.2012 AS AT 31.03.2011

Cash on hand 1.23 1.78

Cheques on hand 0.00 7934.31

Balance with Scheduled Banks :

In Current Accounts 11041.82 1064.89

In Fixed Deposit Accounts 31.81 30.00

11074.86 9030.98

33



Note:

(i) The above Cash Flow has been prepared under the Indirect Method as set out in AS - 3 on

Cash Flow Statement.

(ii) Cash flow from operating activities excludes non-cash transaction relating to transfer of Inter

Company Balances amounting to ` 14036.41 lakhs as appearing in the books of subsidiary

companies and Provision for Current Income Tax expenses of 6568.35 lakhs.

(iii) Cash flow from financing activities excludes effect of increase in share capital and decrease in

share application money to the extent of 10000 lakhs being non-cash adjustment.







SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE ACCOUNTSst

FOR THE YEAR ENDED MARCH 31 , 2012

NOTE: 1 SIGNIFICANT ACCOUNTING POLICIES

The Company is wholly owned by Government of Gujarat. It was promoted as a part of restructuring plan of Gujarat Electricity Board (“GEB”), to buy and sell electricity, hold the shares in other companies, and acquire and hold residual assets and liabilities of GEB.

1) BASIS OF ACCOUNTING:

The Company prepares its Financial Statements under historical cost convention on accrual basis as a going concern, unless otherwise stated and the same comply with the generally accepted Accounting Principles (Indian GAAP) and the relevant Accounting Standards issued by the Institute of Chartered Accountants of India referred to in Section 211 (3C) of the Companies Act, 1956 unless otherwise stated.

2) FIXED ASSETS :

a) Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. 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.

b) Expenses incurred during project implementation and on trial run are treated as incidental expenditure during construction and are accordingly capitalized.

3) DEPRECIATION:

a) Depreciation is provided on Straight Line Method at the rates and on the basis specified in Schedule XIV to the Companies Act, 1956.

b) Depreciation on addition / deletion of assets during the year is provided on pro-rata basis from the date when the asset is put to use.

c) Assets costing up to 5,000/- per item are depreciated fully in the year of capitalization.

4) INVESTMENTS:

Long term investments are stated at cost. Diminution in value, if any, which is of a temporary nature, is not provided for.

5) PROVISIONS:

Provisions involving substantial degree of reliable estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources to settle the obligations. Provisions are not discounted to the present value and are determined based on the best estimate required to settle the obligation at the year end date. These are reviewed at each year-end date and adjusted to reflect the best current estimate.

6) CONTINGENT LIABILITIES :

Contingent liabilities are disclosed in respect of which there are possible or present obligations that arise from past events but their existence is confirmed on occurrence or non-occurrence of one or more uncertain future events and in respect of which there may not probably be any outflow of resources.

34



7) PROVISION FOR TAXES:

a) Provision for taxation is made at the current rate of tax on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty except for carried forward losses and unabsorbed depreciation which is recognized on virtual certainty that the assets will be realized in future.

8) EMPLOYEE COST & RETIREMENT BENEFITS :

a) The Company has a defined gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to get gratuity at 15 days salary (15/26 x last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of ` 10 Lakhs, on superannuation, resignation, termination, disablement or on death. The scheme is funded by the Company and is managed by a separate trust through Life Insurance Corporation of India (LIC). The year's liability estimated on the basis of actuarial valuation made by LIC is charged to Profit & Loss Account.

b) Leave encashment benefit available on retirement is provided on the basis of actuarial valuation made by LIC and the year's liability is charged to Profit & Loss Account.

c) The retirement benefits in the nature of employer's contribution towards the contributory provident fund, employee pension scheme, and group insurance EDLI etc. are paid / deposited with appropriate authorities during the year and charged to Profit and Loss Account.

9) BORROWING COST:

Borrowing Costs directly attributed to the acquisition of fixed assets are capitalized as a part of the cost of asset up to the date the asset is put to use. Other Borrowing Costs are charged to the Profit and Loss Account in the year in which they are incurred.

10) SUBSIDY AND GRANTS:

Subsidies from Govt. of Gujarat are accounted on accrual basis whereas the Grants from Govt. of Gujarat are accounted on receipt basis except otherwise stated.

11) IMPAIRMENT OF ASSETS:

The impairment of assets i.e. “The cash generating unit” as defined in Accounting Standard-28 issued by the Institute of Chartered Accountants of India on “Impairment of Assets” are identified at the Balance Sheet date with respect to carrying amount of the asset vis-à-vis its estimated revenue generation during balance useful life of that asset and the loss, if any, is recognized in Profit and Loss Account.

12) REVENUE RECOGNITION :

Energy sales are accounted on the basis of billing on Bulk supply Tariff agreements entered into with Distribution Companies viz. Dakshin Gujarat Vij Co. Ltd., Madhya Gujarat Vij Co. Ltd., Paschim Gujarat Vij Co. Ltd. and Uttar Gujarat Vij Co. Ltd. and the contracts entered into with the Licensee viz. Kandla Port Trust and Traders.

35



Surplus power, if any, is sold through bilateral transactions or by putting bids in Power Exchange on day to day basis and the same is accounted on acceptance of bids.

13) POWER PURCHASE :

Purchase of Energy from GSECL is accounted on the basis of GERC Tariff order as applicable from time to time for the power stations transferred under the Financial Restructuring Plan approved by Govt. of Gujarat and for the existing power stations with GSECL prior to unbundling, as per the provisions of respective Power Purchase Agreements (PPAs).

Power purchased from IPPs is accounted on the basis of Power Purchase Agreements entered into with the respective parties

Power purchased from Central Sector is accounted on the basis of tariff determined by Central Electricity Regulatory Commission (CERC) through various orders.

Surplus power of DISCOMs is purchased by the Company for trading.

Power purchased from Wind Farms and Traders (Bilateral) is accounted on the basis of contracts entered into with the respective parties.

Need based power is purchased by putting bids in Power Exchange on day to day basis and the same is accounted on acceptance of bids.

14) PENALTY :

Penalty for delay in supply of materials is recovered as per the terms of purchase order at the time of accounting the purchases whereas refund of penalty is accounted when the order is fully executed by the supplier and the refund is approved by the competent authority.

15) DIVIDEND INCOME :

Dividend on investment is recognized as and when received.

16) OTHER INCOME :

Rebate for Prompt Payment towards purchase of power, Interest on UI Pool Account, Cash Discount and CDM Benefit are accounted on cash basis.

17) ASSETS NOT IN USE :

Material Items retired from active use and held for disposal are stated at lower of their net book value and net realizable value and shown separately in the financial statements.

.

36

37



IN LAKHSstSR. PARTICULARS AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011

NO.Authorised Share Capital 500000.00 500000.00500,00,00,000 (Previous Year 500,00,00,000)Equity Shares each of 10 eachIssued, Subscribed & Paid-Up Share Capital 455180.29 394360.29*455,18,02,895 (Previous Year: 394,36,02,895)Equity Shares of 10 each fully paid-up TOTAL 455180.29 394360.29

1 *Out of the above, 162,87,12,000 Equity Shares are issued to Government of Gujarat as fully paid-up pursuant to the rdNotification No. GHU-2006-91-GUV-1106-590-K dated 3 October, 2006 without payment being received in cash

and 62,30,60,695 Equity Shares are allotted to Government of Gujarat on coversion of loans vide G R No.GUV-1106-K dtd.22nd March, 2007.

2 Reconciliation of No. of Equity Shares outstanding :st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011

PARTICULARS Number of Shares Number of Shares i Opening Balance 3943602895 3415343195 ii Shares Issued 608200000 528259700 iii Shares Bought Back 0 0 iv Closing Balance 4551802895 39436028953 Details of Shareholders holding more than 5% Shares

st stSR. AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011PARTICULARS NO.

Governor of Gujarat 4551802895 100.00 3943602895 100.004 The Company has only one class of equity shares having par value of 10 each and is entitled to one vote per share.5 Out of the Share Capital contribution of 508.20 crores received during the year and 100 crores received last year

as Share Application Money from State Govt. for equity infusion in subsidiary companies, an amount of ` 308.20 crores is invested in subsidiary companies and balance amount will be invested in subsidiary companies in the following year/s.

NOTE : 3 RESERVES AND SURPLUS IN LAKHS

st stSR. PARTIC U L A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011NO.1 Capital Reserve (Capital Grant) i As per last Balance Sheet 25358.78 25000.00 ii Add: Addition during the year 46.00 358.78 iii Less: Utilized / Transferred during the year 404.78 0.00

SUB-TOTAL 25000.00 25358.782 Profit and Loss Account i As per last Balance Sheet -52367.22 -59936.96 ii Add / Less: Profit for the year 6729.35 7569.74

SUB-TOTAL -45637.87 -52367.22 TOTAL -20637.87 -27008.44Capital Grant of 308.78 lakhs for electrification of Group Wells under Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) Scheme transferred to Dakshin Gujarat Vij Company Ltd., a subsidiary company, as the work was executed by them. Further, grant of 50 lakhs received in 2010-11, 21 lakhs received during the year and balance amount of 25 lakhs receivable against grant sanctioned by Gujarat Energy Development Agency (GEDA) has been utilised against specific capital expenditure of ` 86.40 lakhs for Solar Equipments and related revenue expenditure of 9.60 lakhs.

NOTE: 4 SHARE APPLICATION MONEY PENDING ALLOTMENT ` IN LAKHS

st stSR. PARTIC U L A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011NO.1 Equity Share Application Money 0.00 10000.00

TOTAL 0.00 10000.00

st

Number of Shares % age of holding Number of Shares % age of holding

st NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH, 2012

NOTE : 2 SHARE CAPITAL

NOTE: 5 LONG TERM BORROWINGS ` IN LAKHS

st stSR. PARTICUL A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011NO.

I SECURED LOANSA Term Loan from Banks i Indian Overseas Bank 0.00 470.67 ii Indian Overseas Bank 0.00 368.47 iii Union Bank of India 0.00 201.00 iv Allahabad Bank 0.00 603.00 v Canara Bank 0.00 1349.39 vi Dena Bank 0.00 237.05

0.00 3229.58B Term Loan from Others i Power Finance Corporation 680.83 983.43 SUB-TOTAL 680.83 4213.01II UNSECURED LOANSA Bonds i 11.50% Series-Vl Option-II 0.00 1048.53 ii 11.75% Series-Vl Option- III 524.96 749.94 iii 7.50% Series-Vl Option- III 970.11 1385.87 iv 11.25% Series-VII option-II 14.63 25.61 v 11.50% Series-VII option-III 491.80 491.80 vi 8.95% Series-Vlll 4481.63 4481.63 vii 8% Series-lX 712.34 712.34 viii 8% Series-X 1985.95 1985.95

9181.42 10881.67B Term Loan from Others i Gujarat State Financial Services (GSFS) 0.00 1781.56C Govt. of Gujarat (Related Party) i Loan for purchase of Naphtha Based Power 0.00 1176.40 ii Loan for purchase of Spot LNG Based Power 335.20 670.40 iii Loan for Power Purchase 10500.00 10500.00 iv Loan from Asian Development Bank (No.1803) 14542.07 16124.33

25377.27 28471.13 SUB-TOTAL 34558.69 41134.36 TOTAL 35239.52 45347.37

A Note: I Loan from PFC is secured against the Ist mortgage/ hypothecation charge on the assets of Bharuch Transmission

Circle.st II Loan from Indian Overseas Bank is secured against the 1 hypothecation charge on the assets of Dhrangadhra and

Surendranagar O & M Division of PGVCL.st III Loan from Dena Bank is secured against the 1 hypothecation charge on the assets of Amreli ,Dhasa & Vertej Tr.

Division of GETCO.st IV Loan from Indian Overseas Bank is secured against the 1 hypothecation charge on the assets of Vijapur, Mehsana

& Chhatral Tr. Division of GETCO.st V Loan from Union Bank of India is secured against the 1 hypothecation charge on the assets of Soja, Dhansura &

Chhatral Tr. Division of GETCO.st VI Loan from Allahabad Bank is secured against the 1 hypothecation charge on the assets of Sabarmati, Gandhinagar

& Bavla O & M Division of UGVCL.

VII Loan from Canara Bank is secured against the extension hypothecation charge on the assets of Godhra and Baroda O&M Divisions of MGVCL.

VIII Bonds are secured by way of guarantee of Govt. of Gujarat

38



B MATURITY PROFILE OF BONDSPARTICULARS 2012-13 2013-14 2014-15 2015-16 2016-17

1 11.50% Series-Vl Option-II (Yearly) 1048.54 0.00 0.00 0.00 0.002 11.75% Series-Vl Option- III (Yearly) 224.98 224.98 299.98 0.00 0.003 7.50% Series-Vl Option- III (Yearly) 415.76 415.76 554.35 0.00 0.004 11.25% Series-VII option-II (Yearly) 10.98 14.63 0.00 0.00 0.005 11.50% Series-VII option-III (Yearly) 0.00 491.80 0.00 0.00 0.006 8.95% Series-Vlll (Yearly) 0.00 0.00 1344.49 1344.49 1792.657 8% Series-lX (Yearly) 0.00 0.00 213.70 213.70 284.938 8% Series-X (Yearly) 0.00 0.00 595.79 595.79 794.38

1700.26 1147.18 3008.30 2153.97 2871.97MATURITY PROFILE OF SECURED & UNSECURED LOANS

2016-17 toPARTICULARS 2012-13 2013-14 2014-15 2015-16

2045-461 SECURED LOANSi Power Finance Corporation (10.49% p.a.—

Repayment Quarterly @ 75.65 Lakhs) 302.59 302.59 302.59 75.65 0.00ii Indian Overseas Bank (8.50% p.a.———

Repayment Quarterly @`117.67 Lakhs) 470.67 0.00 0.00 0.00 0.00iii Indian Overseas Bank (9.50% p.a.——

Repayment Monthly @ 33.50 Lakhs) 368.47 0.00 0.00 0.00 0.00iv Union Bank of India (10.75% p.a.——

Repayment Half Yearly @ 201.00 Lakhs) 201.00 0.00 0.00 0.00 0.00v Allahabad Bank (9% p.a.——

Repayment Quarterly @ 201.00 Lakhs) 603.00 0.00 0.00 0.00 0.00vi Canara Bank (10.75%p.a.———

Repayment Monthly @ 134.97 Lakhs) 1349.39 0.00 0.00 0.00 0.00vi Dena Bank (10.75% p.a.——

Repayment Monthly @ 49.39 Lakhs) 237.05 0.00 0.00 0.00 0.00 Sub-Total 3532.17 302.59 302.59 75.65 0.00

2 UNSECURED LOANSi Gujarat State Financial Services (GSFS) (9% p.a.

—Repayment Monthly @ 161.96 Lakhs) 1718.56 0.00 0.00 0.00 0.00ii Govt. of Gujarata Naphtha Based Power (Interest Free—Yearly) 1176.40 0.00 0.00 0.00 0.00b Spot LNG Based Power (Interest Free—Yearly) 335.20 335.20 0.00 0.00 0.00c Loan for Power Purchase (10% p.a.—

Repayment Yeraly instalment for 30 years of ` 1050.00 Lakhs up to 2046-47) 0.00 0.00 0.00 0.00 10500.00

d ADB—1803 (12.62% p.a.—Reapayment Yearlyinstalment up to 2023-24) 1582.26 1582.26 1582.26 1582.26 9795.28 Sub-Total 4812.42 1917.46 1582.26 1582.26 20295.28TOTAL (SECURED+UNSECURED) 8344.59 2220.06 1884.86 1657.91 20295.28

C The borrowings from Banks and Financial Institutions, etc. made during the year and the cost of borrowings incurred during the year has been apportioned amongst the Company and its six subsidiary companies on the basis of the Financial Restructuring Plan approved by the Govt. of Gujarat.

D The Company has not executed the transfer agreements in respect of following loans availed from Banks, Financial Institutions, etc though the loans are apportioned amongst all the subsidiary companies:

IN LAKHS

INSTITUTIONS st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 20111 Banks 14185.11 89966.452 Bonds 106896.34 132072.863 GSFS 39218.44 63930.704 Govt. of Gujarat 51728.31 55877.55

TOTAL 212028.20 341847.56

39



40



NOTE: 6 OTHER LONG TERM LIABILITIES

IN LAKHSSR. st PA R T I C U L A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011NO.

1 Staff Voluntary Retirement cum Death Benefit 485.88 451.98

TOTAL 485.88 451.98

NOTE: 7 LONG TERM PROVISIONS

IN LAKHSSR. st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011PAR T I C U L A R S NO.

1 Gratuity 42482.65 42761.85

2 Leave Encashment 721.51 642.50

TOTAL 43204.16 43404.35

NOTE: 8 SHORT TERM BORROWINGS

IN LAKHSSR. st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011 PARTICULARS NO.

Secured:

1 Cash Credit from Banks 16428.67 49258.65

TOTAL 16428.67 49258.65

Cash Credit Limit is secured against the hypothecation charge in favour of UCO Bank Consortium & SBI Consortium on the Stocks and Book Debts of the Company and its six Subsidiary Companies ranking pari-passu.

NOTE: 9 TRADE PAYABLES

IN LAKHSSR. st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011PAR T I C U L A R S

NO.

Liabilities related to Power Purchase

1 Others 228392.77 212210.02

TOTAL 228392.77 212210.02

Dues to SSIs and Interest on Delayed Payments:

i Based on the details available with the Company regarding the status of the suppliers as defined under the “Micro, Small and Medium Enterprises Development Act, 2006” there are no dues to micro, small and medium enterprises as at 31st March 2012 on account of principal amount together with interest for delayed payment under the Act (Previous Year Nil).

ii The Company has not received any claim for interest from any suppliers under the “Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993”.

st

NOTE: 10 OTHER CURRENT LIABILITIES

IN LAKHSSR. st st PART I C U L A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011 NO.

1 Liabilities related to :

i - O&M Supplies/Works 0.60 0.41

ii - Staff 9.81 13.44

iii Unclaimed amt.relating to Borrowings 713.57 652.22

iv Stale Cheques 3.89 12.19

v Interest Accrued and Due on Loans from Banks 88.93 99.05

vi Interest Accrued But Not Due on Loans 1846.81 2134.09

vii Inter Company Payables 93868.18 67116.00

viii Electricity Duty payable to State Govt. 26631.82 8172.03

ix Liability towards payment of TDS 58.51 939.42

x Amount owing to Licensees 274.25 274.25

xi Corpus Fund of Bal Urja Rakshak Dal 33.73 31.31

xii Deposits and Retention from Suppliers & Contractors 3632.94 2481.76

xiii Other Liabilities

a Income Accrued & Due—Staff Loans 0.00 0.02

b Liability for Interest Received—Outside Parties 10.47 9.36

c Board of Trustees——CPF 899.74 174.19

d Grant Payable 100.01 0.00

1010.22 183.57

Current maturities of Long Term Debt:

2 Secured*

A Term Loan from Banks

i Bank of Baroda 0.00 1468.09

ii State Bank of India 0.00 1957.97

iii Indian Overseas Bank 470.67 470.67

iv Dena Bank 0.00 1581.68

v Indian Overseas Bank 368.47 402.01

vi Union Bank of India 201.00 402.00

vii Allahabad Bank 603.00 804.00

viii State Bank of India 0.00 2385.07

ix Bank of Baroda 0.00 1185.34

x Syndicate Bank 0.00 3167.95

xi Canara Bank 1349.39 2429.41

xii Dena Bank 237.05 592.68

3229.58 16846.87

B Term Loan from Others

i Power Finance Corporation 302.59 302.59

SUB-TOTAL 3532.17 17149.46

3 Unsecured

A Bonds

i 11.50% Series-Vl Option-II 1048.54 786.40

ii 11.75% Series-Vl Option- III 224.98 0.00

iii 7.50% Series-Vl Option- III 415.76 0.00

iv 11.25% Series-VII option-II 10.98 10.98

v 11.50% Series-VII option-III 0.00 0.00

vi 8.95% Series-Vlll 0.00 246.87

vii 8% Series-lX 0.00 211.57

viii 8% Series-X 0.00 785.79

ix SLR Bonds 0.00 521.27

1700.26 2562.88

41



B Term Loan from Banks

ii Short Term Bills Discounting by IPPs from Banks 199600.00 109200.00

199600.00 110050.29

C Term Loan from Others

i Power Finance Corporation 0.00 27.03

ii Gujarat State Financial Services (GSFS) 1781.72 12843.46

D Govt. of Gujarat (Related Party)

i Loan for purchase of Naphtha Based Power 1176.40 1176.40

ii Loan for purchase of Spot LNG Based Power 335.20 335.20

iii Loan from Asian Development Bank (No.1803) 1582.26 1582.26

3093.86 3093.86

SUB-TOTAL 206175.85 128577.52

TOTAL 337881.27 227836.72

* Refer Note No.4

NOTE: 11 SHORT TERM PROVISIONS IN LAKHS

SR. st st PARTI C U L A R S AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011 NO.

1 Provision for Employees i Gratuity 8789.79 10610.38 ii Leave Encashment 27.34 50.16

SUB-TOTAL 8817.13 10660.542 Provision for Tax i Provision for Income Tax—Past Years 2348.47 1900.04 ii Provision for Income Tax—MAT 915.70 789.51 iii Provision for Fringe Benefit Tax 1.91 1.91

SUB-TOTAL 3266.08 2691.463 Other Provisions

Expenses 683.40 569.94 TOTAL 12766.61 13921.94

i Karnataka Bank Ltd. 0.00 850.29

42



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NOTE: 13 NON CURRENT INVESTMENT IN LAKHS

SR.PART I C U L A R S AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011

NO.

INVESTMENT IN EQUITY INSTRUMENTS1 Investment in Subsidiary Companies

Unquoted , Non-Trade I 145,80,22,424 (Previous year 145,80,22,424)

Equity Shares of 10/- each in Gujarat StateElectricity Corporation Ltd., fully paid-up. (Sharesagainst investment of 22,300/- lakhs are yet tobe allotted to the Company). 267303.95 267303.95

II 49,88,83,340 (Previous Year 48,22,16,674) EquityShares of 10/- each in Gujarat EnergyTransmission Corporation Ltd., fully paid-up.(Shares against investment of 8,420/-lakhs areyet to be allotted to the Company) 186211.65 177791.65

III 26,77,25,547(Previous Year 26,77,25,547 ) EquityShares of 10/- each in Dakshin Gujarat VijCompany Ltd., fully paid-up. 48641.34 48641.34

IV 24,26,41,422 (Previous Year 24,26,41,422 )Equity Shares of 10/- each in Madhya Gujarat VijCompany Ltd., fully paid-up. 44356.64 44356.64

V 46,29,03,896 (Previous Year 46,29,03,896)Equity Shares of 10/- each in Paschim Gujarat VijCompany Ltd., fully paid-up. (Shares againstinvestment of 32,400/-lakhs are yet to be allottedto the Company). 143913.03 121513.03

VI 23,71,48,722 (Previous Year 23,71,48,722 )Equity Shares of 10/- each in Uttar Gujarat VijCompany Ltd., fully paid-up. 56983.82 56983.82 SUB-TOTAL 747410.43 716590.43

2 Investment in Other CompaniesA Quoted, Non-Trade i 1,13,50,000 (Previous Year 1,13,50,000 ) Equity

Shares of 10/- each in Gujarat State PetronetLtd.,fully paid-up. 1135.00 1135.00

ii 3,83,84,397 (Previous Year 3,83,84,397) EquityShares of 10/- each in Gujarat Industries PowerCo.Ltd., fully paid-up. 9092.35 9092.35 SUB-TOTAL 10227.35 10227.35

B Un-quoted, Non-Trade I 19,30,000 (Previous Year 19,30,000 ) Equity

Shares of 100/- each in Gujarat PowerCorporation Ltd., fully paid-up. 1930.00 1930.00

II 2,90,03,636 (Previous Year 2,90,03,636) EquityShares of 10/- each in Gujarat State EnergyGeneration Ltd., fully paid-up. 2990.40 2990.40

III 50,000 (Previous Year 50,000 ) Equity Shares of `10/- each in GSPC Gas Co. Ltd., fully paid-up. 5.00 5.00

IV 25,00,000 (Previous Year 25,00,000) EquityShares of 10/- each in Power Exchange of IndiaLtd., fully paid-up 250.00 250.00

SUB-TOTAL 5175.40 5175.40 TOTAL 762813.18 731993.18Aggregate Cost of Quoted Investments 10227.35 10227.35Aggregate Cost of Un-Quoted Investments 752585.83 721765.83Market Value of Quoted Investments 34189.18 46703.68



44

A Investment in Shares of Subsidiary Companies and Other Companies

The Company has made following investments in shares of subsidiary companies and other companies

IN LAKHS

SR. SUBSIDIARY COMPANIES SHARE CAPITAL SHARE PREMIUM TOTAL NO.1 Gujarat State Electricity Corporation Ltd. 168102.24 99201.71 267303.95

2 Gujarat Energy Transmission Corporation Ltd. 58308.33 127903.32 186211.65

3 Dakshin Gujarat Vij Company Ltd. 26772.55 21868.78 48641.33

4 Madhya Gujarat Vij Company Ltd. 24264.14 20092.51 44356.65

5 Paschim Gujarat Vij Company Ltd. 78690.39 65222.64 143913.03

6 Uttar Gujarat Vij Company Ltd. 23714.87 33268.95 56983.82

SUB-TOTAL 379852.52 367557.91 747410.43

II OTHER COMPANIES:

1 Gujarat State Petronet Ltd. 1135.00 0.00 1135.00

2 Gujarat Industries Power Co.Ltd. 3838.44 5253.91 9092.35

3 Gujarat Power Corporation Ltd. 1930.00 0.00 1930.00

4 Gujarat State Energy Generation Ltd. 2900.36 90.04 2990.40

5 GSPC Gas Co. Ltd. 5.00 0.00 5.00

6 Power Exchange Of India Ltd. 250.00 0.00 250.00

SUB-TOTAL 10058.80 5343.95 15402.75

III TOTAL INVESTMENTS: 389911.32 372901.86 762813.18

B The Company has valued investment in equity capital of Power Exchange India Ltd. (PXIL) at cost. Being a

long term investment and the extension of time limit granted by the Central Electricity Authority to PXIL to

comply with the minimum net worth requirement, steady growth in number of members and clients, planned

launch of new products in near future, improvement in overall economic sentiment & business prospects in

power sector, the diminution in value of this investment is not considered permanent in view of these

developments.

NOTE: 14 LONG TERM LOANS AND ADVANCES

SR. IN LAKHSPARTICULARS st stNo. AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011

1 Advances to Staff 157.55 123.37

TOTAL 157.55 123.37

NOTE: 15 OTHER NON CURRENT ASSETS

SR. IN LAKHSPARTICULARS st st No AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011

1 Deposits with others 319.95 318.95

2 Income Accrued But Not Due-Staff Advances 256.45 244.90

TOTAL 576.40 563.85



45

NOTE: 16 TRADE RECEIVABLES

IN LAKHSSR. PARTICULARS st st AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011 NO.

Unsecured ,Considered Good

1 Debts outstanding for the period exceedings six 0.00 0.00

months

2 Others 10585.32 4344.70

TOTAL 10585.32 4344.70

NOTE: 17 CASH AND BANK BALANCES


1 Cash and Cash Equivalent

i Cash on hand 1.23 1.78

ii Cheques on hand 0.00 7934.31

iii Balance with Scheduled Banks

- In Current Accounts 11041.82 1064.89

2 Other Bank Balances

i - In Fixed Deposit (Maturity within 3 to 12 31.81 30.00

months)

TOTAL 11074.86 9030.98

NOTE: 18 SHORT TERM LOANS AND ADVANCES

IN LAKHSSR.PARTICULARS st st NO. AS AT 31 MARCH, 2012 AS AT 31 MARCH, 2011

1 Advances to / for and recoverable from

i - O&M supplies and works 13.23 74.62

ii - Staff 55.45 41.28

2 Advance Tax, TDS and FBT 4854.49 4795.50

3 Other Recievables 4.10 9.10

TOTAL 4927.27 4920.50

NOTE: 19 OTHER CURRENT ASSETS


1 Assets not in use 6.81 6.48

2 Deposit with Government and Local bodies 50.29 2.50

3 Prepaid Expenses 5512.95 3248.92

4 Staff Welfare Fund 0.00 0.15

5 Income Accrued But Not Due-Staff Advances 80.20 50.19

6 Gujarat Energy Training Institute 8.54 333.99

7 Inter Company Recievables 161059.30 112543.52

8 Subsidy Recievable from Government 145114.11 92863.10

TOTAL 311832.20 209048.85



46

NOTE: 20 REVENUE FROM OPERATIONS

IN LAKHSSR. PARTICULARS st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO.


1 SALE OF POWER

A Sale of Power to Licensees 1705.64 2370.57

SUB-TOTAL 1705.64 2370.57

B Sale of Power to Subsidiaries :

i Madhya Gujarat Vij Company Ltd (MGVCL) 337879.26 284549.94

ii Paschim Gujarat Vij Company Ltd (PGVCL) 731128.17 594744.78

iii Uttar Gujarat Vij Company Ltd (UGVCL) 574566.52 490575.05

iv Dakshin Gujarat Vij Company Ltd (DGVCL) 575806.01 475982.30

SUB-TOTAL 2219379.96 1845852.07

C Sale of Power to Others:

Sale of Power through Power Exchanges & 218163.20 162810.07

Bilateral Arrangements

SUB-TOTAL 218163.20 162810.07

Total Rev. from Sale of Power to Licensees, 2439248.80 2011032.71

Subsidiaries and Others (1)

2 Other Operating Revenue

i Delayed Payment Charges from Consumers 833.99 0.00

ii Rebate for Prompt Payment 33885.91 18593.28

iii Cash Discount 2.95 9.67

iv Penalties received from Suppliers 9838.73 125.29

(Net of Refund)

v CDM Benefit from Renewable Energy Sources 552.42 150.37

Total Other Operating Revenue (2) 45114.00 18878.61

TOTAL 2484362.80 2029911.32

NOTE: 21 OTHER INCOME

IN LAKHSSR. PAR T ICULARS st st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO. MARCH, 2012 MARCH, 2011

1 INTEREST

i Interest on Staff Loans and Advances. 23.10 12.80

ii Interest on Fixed Deposit with Banks 0.00 0.66

iii Interest on Other Loans and Advances 34.84 184.99

iv Interest on UI Pool Account 0.00 137.37

Total Interest 57.94 335.82

2 Dividend 1160.75 1160.62

3 Provision no longer required 0.00 24.00

4 Gain on Sale of Fixed Assets 0.00 8.45

5 Miscellaneous Income 19.16 65.48

TOTAL 1237.85 1594.37

st



47

NOTE: 22 PURCHASE OF POWER

IN LAKHSSR. PARTICULARS st st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO.

MARCH, 2012 MARCH, 2011A From Central Sector:1 Nuclear Power Corporation of India Ltd. 86029.25 60302.192 NTPC Ltd. 379897.78 297390.953 Sardar Sarovar Narmada Nigam Ltd 13947.66 11519.40 SUB-TOTAL 479874.69 369212.54B From IPPs:I Private Sector:1 Essar Power Limited 40226.16 48347.872 Gujarat Paguthan Energy Corporation Pvt. Ltd. 151401.40 133570.623 Essar (Vadinar) Ltd. 1263.04 0.004 ACB India Ltd. 2157.40 0.005 Adani Power Ltd. 243031.63 173782.92

SUB-TOTAL 438079.63 355701.41II State Sector:1 Gujarat Industries Power Company Ltd. 116125.13 95148.482 Gujarat State Energy Generation Ltd. 29969.06 27766.423 Gujarat Mineral Development Corporation 12624.48 23723.254 Gujarat State Electricity Coporation Ltd. 833245.13 757312.66

SUB-TOTAL 991963.80 903950.81C From Others:1 Wind Farms 79483.15 52361.462 Purchase of Power from Renewable Sources 27925.31 941.453 Captive Power Plants 4277.98 7051.914 Power Exchange of India Ltd. 124.13 0.005 India Energy Exchange 210.16 0.006 Purchase of Power from DISCOMs 213227.56 159084.44

SUB-TOTAL 325248.29 219439.26D Wheeling Charges:1 Transmission Charges to Power Grid Corporation 49822.36 37406.892 Wheeling /Transmission Charges payable to 144209.34 118404.49

Gujarat Energy Transmission Corporation Ltd. SUB-TOTAL 194031.70 155811.38 TOTAL 2429198.11 2004115.40

NOTE: 23 EMPLOYEES BENEFITS EXPENSE IN LAKHS

st stSR. PARTI C U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO. MARCH, 2012 MARCH, 20111 Salaries & Allowances 1586.97 1484.302 Leave Encashment 106.35 113.633 Contribution to PF & Other Funds 117.68 105.414 Gratuity 77.10 146.035 Staff Welfare 37.80 58.436 Expenditure on Training to Staff 6.05 8.72

TOTAL 1931.95 1916.52(a) Defined contribution to Provident Fund, Employees Pension Scheme and Employees Death Linked Insurance:

IN LAKHS

SR. st stPARTIC U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO.

MARCH, 2012 MARCH, 20111 EDLI Admn. Charges 0.01 0.012 Company’s Contribution to CPF 117.68 105.413 CPF Inspection & Audit Charges 2.16 2.034 Pension Contribution for Company’s Employees on deputation 15.16 24.015 Company’s Contribution to Pension Fund 15.94 16.51

TOTAL 150.95 147.97



48

(b) Defined contribution towards retirement benefits (Disclosure under AS-15):

The following table sets out the status of the Gratuity and Leave Encashment Scheme Plans:

IN LAKHS SR.PARTIC U L A R S Leave Encashment (Unfunded) Gratuity (Funded)

NO. 2011-12 2010-11 2011-12 2010-11

I Amounts recognized in the Balance Sheet

1 Present value of obligation 748.85 692.66 1121.84 1056.45

2 Fair Value of Plan Assets NIL NIL 578.67 481.19

3 Unrecognized past service cost NIL NIL NIL NIL

4 Net Liability in the Balance Sheet 748.85 692.66 543.17 575.25

II Cost for the period

1 Current Service Cost 8.27 8.31 30.25 32.78

2 Interest on obligation 55.41 49.26 84.51 74.97

3 Expected return on plan assets NIL NIL -48.25 -38.52

4 Net Actuarial (Gains) / Losses recognised in the year 42.66 56.07 10.59 76.80

5 Past Service Cost NIL NIL NIL NIL

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

7 Expenses recognised in the Statement of Profit & Loss 106.35 113.64 77.10 146.03

III Change in Benefit Obligations

1 Opening defined benefit obligation 692.66 615.74 1056.45 937.15

2 Prior period adjustments NIL NIL NIL NIL

3 Current Service Cost 8.27 8.31 30.25 32.78

4 Past Service Cost NIL NIL NIL NIL

5 Interest on obligation 55.41 49.26 84.51 74.97

6 Actuarial (Gains) / Losses 42.66 56.07 6.38 75.37

7 Benefits paid -50.16 -36.72 -55.75 -63.82

8 Closing defined benefit obligation 748.85 692.66 1121.84 1056.45

IV Changes in Plan Assets

1 Opening fair value of Plan Assets NIL NIL 481.19 366.89

2 Expected return on Plan Assets NIL NIL 48.25 38.52

3 Actuarial Gains / (Losses) NIL NIL -4.21 -1.43

4 Employers Contributions NIL NIL 109.19 141.04

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

6 Exchange differences on foreign plans NIL NIL NIL NIL

7 Benefits paid -50.16 -36.72 -55.75 -63.82

8 Closing fair value of Plan Assets NIL NIL 578.67 481.19

V Principal Acturial Assumptions

1 Rate of Discounting 8% 8% 8% 8%

2 Expected Return on Plan Assets - - 9.50% 9.50%

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

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

I Govt. of India vide Notification No. 1007 published in Govt. Gazette dtd. 24th May, 2010 amended the Payment of Gratuity Act, 1972

for revision in the gratuity limit from existing 3.50 Lakhs to 10 Lakhs w.e.f. 24.05.2010. Consequent upon such amendment, the

Company has been recognising the gratuity liability with a ceiling of 10 Lakhs based on acturial valuation as carried out by LIC of

India since F Y 2009-10 and had accordingly provided the past liability and charged the same to P & L Account in that year itself. The

current year’s liability is provided considering the ceiling of 10 Lakhs and charged the same to P & L Account for the year.

II The erstwhile Gujarat Electricity Board has established a Master Trust to manage the affairs of the gratuity. Post restructuring, the

Company has inherited the said Master Trust and managing the same for and on behalf of itself and its subsidiary companies. On

account of this arrangement, the gratuity liability of subsidiary companies is also accounted for in the books of the Company. The

total liability thus represents the liability of the Company as well as the liability of its subsidiary companies as under.

`



49

Sr.C O M P A N Y AS AT 31st MARCH, 2012 AS AT 31st MARCH, 2011

No.

1 Gujarat Urja Vikas Nigam Ltd. 543.17 575.25

2 Gujarat State Electricity Corporation Ltd. 11252.14 11890.92

3 Gujarat Energy Transmission Corporation Ltd. 11180.99 11410.00

4 Dakshin Gujarat Vij Company Ltd. 4619.22 4894.59

5 Madhya Gujarat Vij Company Ltd. 6370.19 6438.69

6 Paschim Gujarat Vij Company Ltd. 9550.60 9875.78

7 Uttar Gujarat Vij Company Ltd. 7756.14 8286.99

TOTAL 51272.45 53372.22

NOTE: 24 FINANCE COSTS IN LAKHSSR.

st stPARTICULARS FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO. MARCH, 2012 MARCH, 2011

A Interest

i - On Bonds and other Fixed Loans 5652.05 4208.12

ii - On Working Capital 2331.80 5440.75

SUB-TOTAL 7983.85 9648.87

B Financial Charges

i Gurantee Fees/Charges 300.81 310.94

ii Bank Charges and Commission 139.70 115.54

iii Others 95.44 49.44

TOTAL 8519.80 10124.79

NOTE: 25 OTHER EXPENSES

IN LAKHSSR. PARTICULARS st st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO. MARCH, 2012 MARCH, 2011

1 Repairs & Maintenance

i Building 61.88 126.41

ii Others 456.30 164.16

SUB-TOTAL 518.18 290.57

2 Rent, Rates and Taxes 7.49 11.63

3 Insurance 6.24 5.70

4 Telephone & Postage Expenses 19.35 25.28

5 Audit Fees 5.84 5.74

6 Travelling & Conveyance 86.18 85.00

7 Printing & Stationery 44.55 21.64

8 Computer Expenses 3.18 5.77

9 Advertisement 3.90 15.33

10 Contributions & Charities 100.00 0.00

11 Electricity Charges 117.90 107.00

12 Loss on Sale of Assets 0.00 0.66

13 Discount to Cons. for Timely Payment of Bills 2609.58 664.05

14 Delay Payment Charges for Purchase of Power 681.25 0.00

15 Legal & Professional Fees 177.41 433.46

16 Expenses for Energy Conservation * 0.00 0.41

17 Miscellaneous Expenses 88.81 76.66

TOTAL 4469.86 1748.90

* During the year an expenditure of ` 706.13 lakhs (previous year ` 110.26 lakhs) was incurred towards Energy Conservation activites which has been set off against the grant received from Govt. of Gujarat for this purpose.

IN LAKHS



50

NOTE: 26 PRIOR PERIOD ADJUSTMENT

IN LAKHS SR. st stPARTIC U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31

NO. MARCH, 2012 MARCH, 2011

Income

1 Interest Income 0.17 0.00

2 Excess Provision of Depreciation 22.42 0.00

3 Other Excess Provision 125.34 2080.77

SUB-TOTAL 147.93 2080.77

Expenses

1 Power Purchase 0.00 180.95

2 Admn. Expenses 0.32 9.85

3 Other Adjustments relating Prior Period 61.65 24.48

SUB-TOTAL 61.97 215.28

TOTAL 85.96 1865.49

NOTE: 27 EXCEPTIONAL ITEMS

IN LAKHSSR. st stPAR T I C U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO. MARCH, 2012 MARCH, 2011

1 Customs Duty,Green Energy Cess & Clean Energy Cess 25360.42 0.00

TOTAL 25360.42 0.00

During the year the Company has accounted for an amount of 25360.42 Lakhs towards Customs Duty on purchase of power based on the orders passed by Hon’ble GERC on 21.10.2011, which may be recoverable from Subsidiary Distribution Companies.

NOTE: 28 TAX EXPENSES

IN LAKHS SR. st stPARTICU L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31


1 Current Tax (MAT) 2720.00 2600.00

2 Income Tax Expense of Earlier Years’ Demand 3848.35 2400.00

TOTAL 6568.35 5000.00

i During the year, in accordance with the AS-22 “Accounting for taxes on income issued by The Institute of Chartered Accountants of India, the company has recognized deferred tax on the basis of “Income Approach”. The Company has huge amount of carried forward losses and unabsorbed Depreciation under the Income Tax Act and accordingly there is no virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Hence, as a matter of prudence, deferred tax assets for the year have not been recognized in books of accounts as the Company does not envisage taxable profit in the near future. The net effect in the books of accounts is, therefore, “NIL”.

ii Deferred Tax on depreciation on the opening balances of the assets vested by the Government of Gujarat for the financial year 2005-06 under various notifications and Restructuring Plan have not been recognized considering the permanent difference. Further, consequential difference between the amount of deprecation for accounting purpose and tax purpose in respect of such assets in subsequent years would also not be considered as timing difference.

The Deferred Tax Asset / Liability is worked out as under:

IN LAKHS st st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 SR. PARTICULA RS MARCH, 2012 MARCH, 2011 NO. Deferred Tax Deferred Tax Deferred Tax Deferred Tax

Asset Liability Asset Liability

1 Depreciation 780.83 0.00 523.82 0.00

2 Provision for Leave Encashment 36.15 0.00 37.75 0.00

3 Gratuity 0.00 10.92 10.54 0.00

4 Others 0.00 11.80 0.00 10.78

5 Total Deferred Tax Asset / (Liability) 816.98 22.72 572.11 10.78

Net Deferred Tax Asset 794.26 561.33

Net effect of Deferred Tax Asset in Profit & Loss A/c -NIL- -NIL-



51

NOTE: 29 OTHER DISCLOSURES

A Commitments:

Estimated amount of Contracts remaining to be executed on Capital Account and not provided for (net of advances):

IN LAKHSSR. st stPARTIC U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31 NO.


NIL NIL

B Contingent Liabilities not provided for:

IN LAKHS SR. st stPA R T I C U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31


1 Letter of Credit 40604.50 32447.00

2 Guarantees issued by Banks on behalf of the NIL NIL

Company

3 Claims against the erstwhile GEB &

the Company not acknowledged as debts

i Purchase 14.72 14.72

ii Lease Finance availed by erstrwhile GEB 1756.00 1756.00

iii Power Purchase 75779.00 51673.00

iv Stamp Duty on mortgage deed for loans availed 1108.00 1108.00

by erstwhile GEB from LIC

v Employees NOT ASCERTAINABLE NOT ASCERTAINABLE

vi Disputed demand of Income Tax against NOT ASCERTAINABLE NOT ASCERTAINABLE

erstwhile GEB

vii Disputed demand of Income Tax against the Company NIL NIL

SUB-TOTAL (3) 78657.72 54551.72

4 Corporate Guarantees given by the Company

for and on behalf of the subsidiary companies

a All Subsidiaries except Uttar Gujarat Vij UCO Bank 345450.00 UCO Bank 345450.00

Company Ltd. Consortium for Consortium for

working capital working capital

limits limits

b Uttar Gujarat Vij Company Ltd. State Bank 36850.00 State Bank Of 36850.00

Of India India

Consortium for Consortium for

working capital working capital

limits limits

c Gujarat Energy Transmission Corporation Ltd. State Bank of 4678.00 State Bank of 5686.00

India for term India for term

loan loan

d Gujarat State Electricty Corporation Ltd. GSFS 131110.00 GSFS 83333.00

(Comfort letter) (Comfort letter)

e Gujarat Energy Transmission Corporation Ltd. GSFS 135833.00 GSFS 54000.00

(Comfort letter) (Comfort letter)

C Segment Reporting

Since the Company has one segment, viz., Purchase and Sale of Power, there is no reportable segment.

D Subsidy and Grants

Various Subsidies and Grants received / receivable during the year from the Government of Gujarat have been apportioned amongst the subsidiary companies on appropriate basis.



52

E Impairment of Assets

The Company does not have any “Cash Generating Unit” as defined in Accounting Standard-28 issued by the

Institute of Chartered Accountants of India on “Impairment of Assets” and as such, no exercise for assessment of

residual life of the assets is necessary.

F Related Party Disclosure

i As per Para 9 of A.S 18 on “Related Party Disclosure”, no disclosure is required in the financial statements as regards

related party relationship with other state controlled enterprises and transactions with such enterprises.

ii As an annual closing procedure, Inter Subsidiary Company balances duly reconciled have been transferred by all the

subsidiary companies to the debit / credit of the Company’s account (GUVNL) and are reflected in above balances as

appearing in Other Current Assets / Other Current Liabilities.

iii During the current year the balances with all the subsidiary companies are fully reconciled. The balances as on 31st

March as appearing in the respective companies’ books are as under:

IN LAKHSSR.

SUBSIDIA R I E S In the books of GUVNL In the books of Subsidiaries NO. 2011-12 2010-11 2011-12 2010-11

1 Gujarat State Electricity Corporation Ltd. 70835.12 (Cr) 34697.22 (Cr) 70835.12 (Dr) 34697.22 (Dr)

2 Gujarat Energy Transmission Corporation Ltd. 12565.55 (Dr) 36418.01 (Dr) 12565.55 (Cr) 36418.01 (Cr)

3 Dakshin Gujarat Vij Company Ltd. 23033.05 (Cr) 32418.78 (Cr) 23033.05 (Dr) 32418.78 (Dr)

4 Madhya Gujarat Vij Company Ltd. 12149.47 (Dr) 2554.51 (Dr) 12149.47 (Cr) 2554.51 (Cr)

5 Paschim Gujarat Vij Company Ltd. 103324.85 (Dr) 58268.16 (Dr) 103324.85 (Cr) 58268.16 (Cr)

6 Uttar Gujarat Vij Company Ltd. 33019.43 (Dr) 15302.84 (Dr) 33019.43 (Cr) 15302.84 (Cr)

iv The ownership of the land on which Gujarat Energy Training & Research Institute (GETRI), a training institute

promoted by the Company and its subsidiary companies, is constructed rests with GETCO while the ownership of the

building rests with the Company. Similarly, the ownership of the premises where the Company has created Data

Centre for e-Urja project rests with MGVCL. The Company has not made any lease or similar agreement with

GETCO and MGVCL respectively.

G Earnings Per Share

IN LAKHS SR. st st PARTIC U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31


1 Profit After Tax ( in lakhs) 6729.35 7569.74

2 Wtd. Average number of Equity Shares

Basic 4058056993 3870584319

Diluted 4058056993 3970584319

3 Face Value per Share (`) 10.00 10.00

4 Basic Earnings per Share (`) 0.1658 0.1956

5 Diluted Earnings per Share (`) 0.1658 0.1906

H Auditor’s Remuneration

IN LAKHS SR. st stPART I C U L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31


1 Audit fees 5.20 5.20

2 Reimbursements:

a Service Tax 0.64 0.54

TOTAL 5.84 5.74

I Additional Information pursuant to the provision of paragraphs 3, 4—C & 4—D of Part II of Schedule VI to The

Companies Act, 1956 (As certified by the Management):



53

a Quantitative information in respect of Purchase and Sale of Power :st st FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31

SR. MARCH, 2012 MARCH, 2011PARTICULARS

NO. MUs Amount MUs Amount

(` Lakhs) (` Lakhs)

1 Purchase of Power 71641.880 2429198.11 64645.466 2004115.40

2 Sale of Power 71641.880 2439248.80 64645.466 2011032.71

b Expenditure in Foreign Currency

IN LAKHSSR. st stPARTICU L A R S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31


1 CIF Value of Imports Nil Nil

2 Remittances in Foreign Currency Nil Nil

3 Foreign Travel Nil 0.61

c Earnings in Foreign Currency

IN LAKHS SR. st stPARTICULAR S FOR THE YEAR ENDED 31 FOR THE YEAR ENDED 31

NO. MARCH, 2012 MARCH, 2011 1 Earnings Nil Nil

J Previous year figures have been regrouped / rearranged / recast wherever necessary.

K The balances of trade receivables, trade payables, loans and advances are subject to confirmation and reconciliation, if any.

L Statement Of Management:

i The current assets, loans and advances are good and recoverable and are approximately of the values as shown, if realized in the ordinary course of business unless and to the extent stated other wise in the Accounts. Subject to the notes and the method of accounting followed by the Company, provision for all known liabilities is adequate. There are no contingent liabilities except those stated in the notes.

ii Balance Sheet, Statement of Profit & Loss and Cash Flow Statement read together with the Notes to the accounts , are drawn up so as to disclose the information required under the Companies Act, 1956 as well as give a true and fair view of the state of affairs of the Company as at the end of the year and results of the Company for the year under review.

iii Since mandatory consolidation of accounts is not applicable to the Company, the management has decided not to prepare and present the consolidated Financial Statements.

M During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and meassurement principle followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year’s figures in accordance with the requirements applicable in the current year.







54



1. Financial Year of

the Subsidiary ended on 2012 2012 2012 2012 2012 2012

2. Date from which they April 1, April 1, April 1, April 1, April 1, April 1,

became subsidiary 2005 2005 2005 2005 2005 2005

companies

3. a) Number of shares 1458022424 498883340 242641422 267725547 237148722 462903896

held by Ltd. with its

nominees in the

subsidiaries as at

31st March, 2012

b) Extent of interest of 100% 97.56% 100% 100% 100% 100%

holding company as at

31st March, 2012.

4. The net aggregate

amount of the Profit/(loss)

so far at it concerns the

members of the holding

Company

a) Not dealt wih in the

Holding Company’s

Accounts

i) For the financial

year ended

31st March 2012 17243.81 24940.68 3597.19 7631.57 1244.90 931.30

(` in Lakhs)

ii) For the previous

financial years of the

subsidiary companies

since they become the 54322.47 40857.59 8294.15 11918.86 4386.52 5349.53

Holding Company’s

subsidiary

(` in Lakhs)

March 31, March 31, March31, March 31, March 31, March 31,

STATEMENT PURSUANT TO SECTION 212(e) OF THE COMPANIES ACT, 1956RELATING TO SUBSIDIARY COMPANIES

Sr.No.

Particulars GujaratState

Electricity Corporation

Ltd.

Gujarat Energy

Transmission

Corporation Ltd.

Madhya Gujarat Vij Company

Ltd.

Dakshin Gujarat Vij Company

Ltd.

UttarGujarat

VijCompany

Ltd.

Paschim Gujarat Vij Company

Ltd.

Name of the Subsidiary Company

55



STATEMENT PURSUANT TO SECTION 212(e) OF THE COMPANIES ACT, 1956RELATING TO SUBSIDIARY COMPANIES

b) Dealt wih in the

Holding Company’s

Accounts

i) For the financial year NIL NIL NIL NIL NIL NIL

ended 31st March 2012

(` in lakhs)

ii) For the previous

financial years of the

subsidiary companies NIL NIL NIL NIL NIL NIL

since they become the

Holding Company’s

subsidiary

For and on behalf of the Board

D.J.PANDIAN, IAS RAJ GOPAL, IASChairman Managing Director

K. M. SHRINGARPURE PARTHIV BHATTGeneral Manager (F&A) Company Secretary

Place : GandhinagarDate : 26/12/2012

56



PROXYGUJARAT URJA VIKAS NIGAM LIMITED

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

Folio No. No. of shares held:

I/We_______________________________________________________________________

of _________________ being a Member/s of Gujarat Urja Vikas Nigam Limited, Vadodara

hereby appoint __________________________________ of _______________________ or

failing him __________________________ of ______________________ as my/our proxy to vote

for me/us and on my/our behalf at the EIGHTH ANNUAL GENERAL MEETING of the Company to thbe held on Saturday, 29 December, 2012 at 5.00 p.m at Conference Room,GUVNL,SP Vidyut

Bhavan Race Course,Vadodara 390007 and any adjournment thereof.

Signed this_______________ day of _____________ 2012

Signature(s) of Member(s)

across the Stamp

Note : The Proxy must be deposited at the Registered Office of the Company, not later than 48

hours before the time fixed for the Meeting.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

ATTENDANCE SLIP

GUJARAT URJA VIKAS NIGAM LIMITEDRegd. Office: Sardar Patel Vidyut Bhavan, Race Course, Vadodara – 390 007

(Please complete this attendance slip and hand it over at the entrance of the Meeting Hall.)

I hereby record my presence at the Eighth Annual General Meeting of the Company, held on thSaturday the 29 December, 2012 at 5.00 p.m. at Conference Room,GUVNL, SP Vidyut

Bhavan,Race Course, Vadodara 390007.

Folio No. No. of shares held:

Full Name of the Shareholder/Proxy :

Signature of Shareholder/Proxy :

Note : Only Shareholders of the Company or their proxies will be allowed to attend the Meeting.

Please affixRevenue

Stamp

57



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