karnataka power transmission corporation limited · 2020. 2. 19. · karnataka power transmission...

Karnataka Power Transmission Corporation Limited

2Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

Table of Contents

1. Director’s Report ................................................ 4

2. Comments of the C & AG of India ................... 45

3. Auditor’s Report and Replies .......................... 46

4. Balance Sheet ................................................... 78

5. Profi t & Loss Account ...................................... 80

6. Notes .................................................................. 82

3 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

List of Directors (As on the date of AGM)

Sl.No. Name Particulars

1 Kum. Shobha Karandlaje Chairperson, KPTCL

2 Sri S. Selvakumar Managing Director

3 Sri L.V. Nagarajan Director

4 Sri D.N. Narasimha Raju Director

5 Sri M.N. Vidyashankar Director

6 Sri Pradeep Singh Kharola Director

7 Sri K. Shivaram Director

8 Sri M.R. Kamble Director

9 Sri P. Manivannan Director

10 Dr. Aditi Raja Director (Finance)

11 Sri S. Sumanth Director (Transmission)

12 Sri Muddu Mohan Director (Adm & HR)

13 Sri S. Shivamallu Director

14 Sri Venkatasiva Reddy Director

15 Sri M. Nagaraju Director

COMPANY SECRETARY

Sri R. Sridhara

FINANCIAL ADVISER

Sri C. Sreenivasan

STATUTORY AUDITORS

M/s. Rao & Swami

Chartered Accountants, Bangalore

COST AUDITORS

M/s. K.P.R. & Associates

Bangalore

BOARD OF DIRECTORS


Dear Members,

The Board of Directors of Karnataka Power Transmission Corporation Limited (KPTCL)

have immense pleasure in presenting the 13th Annual Report for the year 2011-12 and the

Audited Accounts of the Company for the year ended 31st March 2012.

FINANCIAL POSITION:

The Financial position of the Company for the three years ending 31st March 2012 is

as follows:

(Rs. In Lakhs)

Sl. No. Particulars 2009-10 2010-11 2011-12

Liabilities

a)Paid-up capital (including Share

deposit)117532.25 157532.25 167532.25

b) Reserves & Surplus 34593.18 42213.82 49952.05

c) Borrowings

Government of Karnataka 772.29 712.89 594.07

Public Bonds 0 0 0

Private Bonds 0 0 0

Financial Institutions & Banks 519104.01 549953.76 523350.49

Cash Credit from Banks 0 0

Other Funds 34122.82 37491.00

d)

Other long term, Other Current

Liabilities, Short term, Long term

Provisions & other liabilities

(Including interest accrued & due)

421886.09 434130.46 463266.56

Total 1128010.64 1222034.18 1204695.42

Assets

e) Gross Block 780859.28 902550.99 995921.43

f) Less: Depreciation 230591.43 269601.34 313094.42

DIRECTORS’ REPORT


Sl. No. Particulars 2009-10 2010-11 2011-12

g) Net Block 550267.85 632949.65 682827.01

h) Capital Work in Progress 292222.93 259129.42 178953.07

i)

Other Current, Non-Current Assets,

Short term, Long term Loans &

Advances, Trade Receivables & Cash

equivalents

283801.41 328225.00 342915.34

j) Miscellaneous Expenditure 1718.45 1730.11

Total 1128010.64 1222034.18 1204695.42

Capital Employed 704406.10 786173.61 556389.24

Net Worth 150406.98 198015.96 217484.30

Note:

Capital Employed represents net fi xed assets including capital work-in-progress plus 1)

working capital

Net worth represents paid up capital plus reserves & surplus less intangible assets2)

WORKING RESULTS:

The working results of the Company for the three years ending 31st March 2012 are as

follows:

(Rs. in Lakhs)

Sl.

No.Particulars 2009-10 2010-11 2011-12

i) Profi t (+) / Loss (-) for the year 1626.99 1886.51 1376.97

ii) Prior Period Adjustments -1030.64 -1723.03 -506.38

iii) Profi t (+) / Loss (-) before Tax 596.35 163.48 870.59

iv) Tax Provision -251.57 76.56 104.00

v) Profi t (+) / Loss (-) after Tax 847.92 86.92 766.59

vi)

Percentage of Profi t before tax to:

Salesa)

Gross Fixed Assetsb)

Capital Employedc)

0.64

0.08

0.08

0.13

0.02

0.02

0.52

0.09

0.16


Sl.

No.Particulars 2009-10 2010-11 2011-12

vii)

Percentage of Profi t after tax to:

Net wortha)

Equity Capitalb)

Capital Employedc)

0.56

0.72

0.12

0.04

0.06

0.01

0.35

0.46

0.14

ADDITION/CHANGES TO THE EXISTING SIGNIFICANT ACCOUNTING POLICIES

During the year under report the following additions /Modifi cations are made to the

existing Accounting Policies for the Financial Year 2011-12 and onwards:

Operating Cyclei) :

The Assets are classifi ed as ‘’Current Assets & Non-Current Assets’’ and Liabilities are

classifi ed as “Current Liabilities and Non-Current Liabilities” assuming the operating cycle of

the corporation as duration of 12 months.

Revenue Recognition:ii)

Following modifi cations are made in the Policy with regard to Recognition of the

Revenue from Inter State Wheeling charges:

Existing Modifi ed

Revenue from Transmission &

Wheeling is recognized on accrual

basis at the tariff as notifi ed by

Karnataka Electricity Regulatory

Commission (KERC) from time to time

in its Multi Year Tariff (MYT) which

is arrived on the basis of estimated

Return on Equity and relevant aspects.

Revenue from Other Sources is also

accounted on accrual basis.

a) Revenue from Transmission is recognized

on accrual basis at the tariff as notifi ed by

Karnataka Electricity Regulatory Commission

(KERC) from time to time in its Multi Year Tariff

(MYT) which is arrived on the basis of estimated


b) Revenue from Inter State Wheeling Charges is

recognized on accrual basis based on Regional

Energy Account (REA) published by Southern

Region Power Committee (SRPC).

c) Revenue from Other Sources is also accounted

on accrual basis.


iii) Employee Benefi ts:

Existing Modifi ed

Expenditure towards Gratuity,

Pension and Leave Encashment is

provided on the basis of Actuarial

valuation at the end of each fi nancial

year in conformity with the revised

Accounting Standard - 15. Actuarial

gains or losses are recognized in

the Profi t and Loss account.

a) Expenditure towards defi ned benefi t scheme

Gratuity and Pension which covers employees who

have joined service upto 31.03.2006 is provided on

the basis of Actuarial valuation using Projected Unit

Credit Method (PUCM) in conformity with Accounting

Standard - 15. Actuarial gains or losses are recognized

in the Profi t and Loss Account.

b) Employees who have joined the Corporation on

or after 01.04.2006 are covered under “New Defi ned

Contributory Pension Scheme (NDCPS)” and

Company’s Contribution at fi xed percentage of salary

is ascertained and paid/provided accordingly.

c) Long term benefi t – Leave Encashment is

ascertained on the basis of Actuarial valuation using

Projected Unit Credit Method (PUCM) and provided

at the end of each Financial Year as required by

Accounting Standard – 15. Actuarial gains or losses

are recognized in the Profi t and Loss Account.

iv) Depreciation on Transformers and other Assets issued for repairs:

Existing Modifi ed

Depreciation is not charged on transformers

and other assets issued for repairs.

Depreciation charge is resumed after the

asset is put back to use after repairs.

Depreciation on released Assets (Assets

not in use) and released Assets issued for

repairs have been charged at normal rates

on Written Down Value of Assets.

PERFORMANCE DURING LAST THREE YEARS

Year 2009-10 2010-11 2011-12

Energy Handled in MUs 47783 50516 56928

Maximum Energy recorded /Day in MUs 148 172 186

Maximum Peak recorded in MWs 6897 7815 8549


CAPEX

EQUITY

Particulars As at 31.03.2011 As at 31.03.2012

Equity Share Capital (Rs. in lakhs) 690.32 1123.26

Debt (Rs. in lakhs) 5506.66 5587.77

Debt Equity Ratio 7.98 : 1 4.97 : 1

SOURCE WISE INSTALLED GENERATION CAPACITY AS ON 31-03-2012:

Source Inst. Cap. (MW)

Hydro 3657

Thermal 2328

CGS 1700

NCE 3638

IPP’s & Others 708

Total 12031

KPTCL STATIONS & TRANSMISSION LINES AS ON 31.03.2012:

Voltage Number of Transmission

Level Stations line in Ckms

400 kV 4 +(*) 1978.18

220 kV 89 9760.46

110kV 331 9063.03

66kV 542 9737.70

Total 966 30539.7


*- 8 Sub-station of M/s PGCIL

Transmission Loss– 3.907% (11-12) (without SR

loss: From KPTCL boundary point to IF point of

ESCOMs i.e., excluding SR loss) -4.4898% (with

SR Loss: Considering CGS generation and power

purchase from their respective at Ex-bus)

ESCOM WISE INSTALLED TRANSMISSION CAPACITY-

2011-12 (220KV SUB-STATIONS)

CompanyTransformers

Capacity in MVA

Number of Sub-

Stations

Transmission

Capacity in MWs

BESCOM 8195 35 6966

MESCOM 1600 7 1360

CESC 2450 12 2082

GESCOM 2300 13 1955

HESCOM 4060 22 3451

TOTAL 18605 89 15814

ENERGY & DEMAND FORECAST:

Energy and Demand Forecast as per draft 18th EPS for the State of Karnataka is as

follows:

Year Energy in MUs Demand in MWs

2012-13 57947 9317

2013-14 62980 10198

2014-15 68208 11123

2015-16 73278 12036

2016-17 78637 13010

DETAILS OF NEW STATIONS AND TRANSMISSION LINES COMMISSIONED AND

AUGMENTATION WORKS CARRIED OUT DURING 2011-12

KPTCL, being the State Transmission Utility has been planning to put in place the best

System. KPTCL has planned construction of several new stations and augmenting the existing


sub-stations during the next couple of years. Year on year, in addition to augmentation, several

new stations and lines are commissioned. Following list gives details for the current year on

this count:

a. Zone-wise details of New Substations Commissioned during the year under report:

Sl.

No.District

Name of the

Station

MVA

added

Total

MVA

Voltage

class in MVA

Date of

Commissioning

Bangalore Transmission Zone

1 Bangalore UrbanShobha Apartments 2 X 31.5 63.00 66/11 KV 21-01-2012

2 C B pura Pathapalya 1 X 12.5 12.50 66/11 KV 30-03-2012

Bagalkot Transmission Zone

1 Belgaum

Katakola

(one transformer

commissioned)

2X10 10.00 110/33 KV 20-04-2011

2 Gadag Sambapur 1X10 10.00 110/11 KV 26-04-2011

3 Belgaum Shirgaon(Kotabagi) 2X10 20.00 110/11 KV 27-06-2011

4 Belgaum Boregaon 2X10 20.00 110/11 KV 25-07-2011

5 Bijapur Almel 2X10 20.00 110/11 KV 30-09-2011

6 Uttara Kannada Mundagoda 2X10 10.00 110/11 KV 05-12-2011

7 Belgaum Mamadapur 1X10 10.00 110/11 KV 28-03-2012

8 Belgaum Bidi 2X10 20.00 110/33 KV 30-03-2012

Gulbarga Transmission Zone

1 BellaryAnanthpur Road

(Bislehally)2X10 20.00 110/11 KV 17-08-2011

2 Gulbarga Wadagera1X10

1X1020.00

110/11 KV

110/33 KV03-10-2011

3 Bidar Hallikhed2X10

1X2040.00

110/11 KV

110/33 KV12-01-2012

4 Bidar Dongaragoan1X10

1X2030.00

110/11 KV

110/33 KV13-01-2012

5 Raichur Maski 1X10 10.00 110/11 KV 14-03-2012

6 Raichur Byagwat 1X10 10.00 110/11 KV 24-03-2012

Hassan Transmission Zone

1 Udupi Navunda1X10

1X1020.00

110/11 KV

110/33 KV17-08-2011


Sl.

No.District

Name of the

Station

MVA

added

Total

MVA

Voltage

class in MVA

Date of

Commissioning

2 Shimoga Chandragutti 1X10 10.00 110/11 KV 17-10-2011

3 Chikkamagalur Chikkamagalur2X100

1X8208.00

220/66 KV

66/11 KV28-10-2011

Mysore Transmission Zone

1 MandyaGamanahalli

(Kodukothanahalli)1 X 8 8.00 66/11 KV 29-07-2011

2 Mandya Hadli 1 X 8 8.00 66/11 KV 29-07-2011

3 Mandya Shivalli (V.C. farm) 2 X 8 16.00 66/11 KV 25-08-2011

4 Mandya Kadaballi 1 X 8 8.00 66/11 KV 29-03-2012

5 Mysore Hullahalli 2 X 8 16.00 66/11 KV 30-03-2012

Tumkur Transmission Zone

1 Davanagere Harihara town 2 X 12.5 25.00 66/11 KV 13-01-2012

2 Tumkur Dasudi 1 X 8 8.00 66/11 KV 13-02-2012

Total MVA 652.50

b. Zone-wise details of Transmission Lines Commissioned during the year under

report:

Sl.

No.District Name of the Line

Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

BANGALORE TRANSMISSION ZONE

1 CB Pura

Construction of 66 KV SC line

from Yennigadale-Chakavelu

to Somanathapura Station

(Yennigadale-Chakavelu_line)

66 KV 6.87 18-07-2011

2Bangalore

urban

67 KV 1C-1000 Sq mm UG cable

from HSR Layout Station (Shobha

Apartments _line)

66 KV 5.24 22-01-2012

3 CB Pura

Repl of existing rabbit ACSR

conductor & RCC poles by Coyote

ASCR conductor & towers in the

existing 66 KV SC tap line from

66 KV DC Gowribidanur-Bagepalli

Circuit-l line 66 KV Vatadahosahalli

S/s. (Gowribidanur-Bagepalli_Line)

66 KV 0.00 17-01-2012


Sl.


Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

4 CB Pura

66KV SC line tapping from

Bagepalli-Somanathapura line

(Pathapalya_Line)

66 KV 0.20 30-03-2012

BAGALKOT TRANSMISSION ZONE

1 Belgaum

Construction of 110 kv SC line on

DC towers for a distance of 13.51

Kms from 110 KV S/s at Yaragati to

the proposed 110 KV S/s at Katakol

with TB (Katakola_line)

110 KV 13.51 20-04-2011

2 Gadag

Construction of 110 KV LILO

line from 110 KV Gadag-Dambal

DC line for a distance of 3.06

Kms(Sambapur_line)

110 KV 6.12 26-04-2011

3 Dharwad

Converting 110 KV SC line with

Lynx to 110 KV DC line with Drake

with TBs (Narendra-Lakamanahalli-

Navanagar-Tarihal-Hubli-SRS_

line)

110 KV 42.31 24-05-2011

4 Belgaum

Construction of 110 KV SC line

on DC towers from proposed

220 KV Ghataprabha R/s

(Shirgaon_line)

110 KV 14.11 27-06-2011

5 Belgaum

110 KV SC line on DC towers from

110 KV Sadalga S/s and aTB at

Sadalga s/s (Boregaon_line)

110 KV 8.21 25-07-2011

6 Bijapur

Construction of 110 KV SC line on

DC towers from 110 KV sindagi s/s

to proposed 110 KV s/s at Almel

(Almel_line)

110 KV 21.32 30-09-2011

7Uttara

Kannada

110 KV SC tap line on Dc towers

from Hubli - Haveri line (Mundagod_

line)

110 KV 17.93 05-12-2011

8 Dharwad

220 KV DC line from 400 KV

Narendra to Mahalingapur with

TB’s at Mahalingapur (Narendra-

Mahalingapur 220 KV _line)

220 KV 246.8 09-02-2012


Sl.


Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

9 Bagalkot

Const. of 110KV DC line from

tapping point of 110KV B.Bagewadi-

Bagalkot line to 110KV Nidagundi

S/s for making LILO arrangement at

110KV Nidagundi S/s for a distance

of 0.77kms with TB at Nidagundi

S/s (Nidagundi-B. Bagewadi-

Bagalkot_line)

110 KV 1.54 27-03-2012

10 Belgaum

Const of 110KV SC line on DC

towers for a distance of 12kms

from 110KV S/s at Gokak to the

proposed S/s at Mamadapur with

TB (Mamadapur_line)

110 KV 12.00 28-03-2012

11 Belgaum

110KV SC line on DC towers from

Proposed 220 KV MK Hubli R/s

(Bidi_Line)

110 KV 16.15 30-03-2012

12 Belgaum

110KV SC line on DC towers

from 110kv Hattaragi S/s to Link

existing Hidkal Dam (GDPH)-

Ghataprabha line with TB at

Hattaragai S/s (Hattaragi-Hidkal

dam-Ghataprabha-Link line)

110 KV 21.54 31-03-2012

GULBARGA TRANSMISSION ZONE

1 Bidar

Providing intermediate 220 KV DC

tower b/w 189 & 190 to 220 KV DC

line (Humnabad-Sedam_line)

220 KV 0.82 13-08-2011

2 BellaryAnanthpur Road(Bislehally_Line)

110KV LILO line110 KV 3.72 17-08-2011

3 Gulbarga

110 KV SC line on DC towers

from Khanapur S/s with a TB at

Khanapura S/s (Wadagera_line)

110 KV 15.50 03-10-2011

4 Bidar

110 KV LILO line from existing

110 KV Humnabad_Bidar line

(Hallikhed_line)

110 KV 1.34 12-01-2012


Sl.


Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

5 Bidar

110 KV SC line from 110 KV

Santhapur S/s to proposed

Dongaragoan S/s for a distance of

18.895 kms with TB at Santhpur

(Dongaragaon_line)

110 KV 18.90 13-01-2012

6 Raichur

a) Const. of 110KV link line

from Sindhanur to Siraguppa,

Kavithal, Raichur (6.897 kms)

b) 110KV link line from Siraguppa,

Kavithal, Raichur (4.032 kms)

(Sindhanur evacuation_line1)

110 KV 10.92 09-02-2012

7 Raichur

Const. of 110KV LILO line on DC

towers for a distance of 3.25kms

from 110 kv Sindhanur Hatti SC line

to the proposed 110KV S/s at Maski

(Maski_line)

110 KV 6.50 14-03-2012

8 Raichur

110KV SC line tapping from existing

Raichur Sindhnur line (Byagwat_

line)

110 KV 9.30 24-03-2012

HASSAN TRANSMISSION ZONE

1 Udupi

Navunda_Line 110 KV SC tap line on

DC towers from existing Hiriyadka-

Kundapura line (Navunda_line)

110 KV 25.00 17-08-2011

2 Shimoga110 KV SC line from Siddapura-

Sirsi line, (Chandragutti_line)110 KV 10.56 17-10-2011

3 Chikkamagalur

Construction of 220 KV Shimoga-

Mysore line(Chikkamagalur 220 KV

_ line)

220 KV 57.10 28-10-2011

4 Hassan

Construction of 66 KV DC line

in the existing corridor of MBT

line from Uddurhalli (Hassan-

Chikkamagalur_line)

66 KV 80.78 02-01-2012


Sl.


Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

MYSORE TRANSMISSION ZONE

1 Mandya


DC towers from Maddur S/s to K

Honnalagere S/s with TB at both

ends(K-Honnalagere-Maddur_line)

66 KV 8.09 02-06-2011

2 Mysore

Reconstruction of 66 KV Cu line to

coyote conductor on Dc towers in

the existing corridor, 10.6 Kms. With

a TB at Hootagalli S/s (Hootagalli-

Vijayanagar-FTS_line)

66 KV 0.00 14-06-2011

3 C.R. Nagar

Stringing 66 kV SC line on existing

DC towers b/w 66 KV Gundlupet

S/s & 66 KV Hangala S/s tap point

for a distance of 9.415 Kms with TB

at Gundlupet (Gundlupet-Hangala_

line)

66 KV 9.42 22-06-2011

4 Mandya


Dc towers from Tubinakere-Arakere

line (Gamanahalli_line)

66 KV 7.88 29-07-2011

5 Mandya

66 KV SC tap line on DC towers

from 66 KV TK halli- Mandya line

(Hadli_line)

66 KV 0.20 29-07-2011

6 Mandya

66 KV SC tap line on DC towers

with coyote from Tubinakere-

Nagamangala line (Shivalli/ V.C.

farm_Line)

66 KV 6.92 25-08-2011

7 Mandya

Const. of 66 KV SC line on DC

towers from MHS at KRS North

bank to existing 66 KV Belagola

S/s with TB at both ends.(Belagola-

Atria _Line)

66 KV 7.65 25-01-2012

8 Chamarajanagar

Providing 66 KV LILO arrangement

to the existing Sathegala S/s from

tapping point of 66 KV SFC_Kollegal

SC line (Sathegala_Line)

66 KV 2.06 31-01-2012


Sl.


Voltage

class in

KV

Length

of line

CKMs.

Date of

Commissioning

9 Mandya

Const. of 66KV SC Coyote ACSR

line for a route length of 10.03 kms

between Shimsha and T.K.Halli

in the existing 66 KV SC CAT

conductor line corridor (Shimsha-

TK_Halli line)

66 KV 0.00 21-03-2012

10 Mandya

66KV SC tap line on DC towers

from 66kv Hirisave-BG Nagar line

(Kadaballi_Line)

66 KV 1.05 29-03-2012

11 Mysore66KV line tapping from Kadakola -

Saragur line (Hullahalli_Line)66 KV 1.36 30-03-2012

12 Chamarajanagar

Const. of 220 KV DC line for a

length of 41.557 kms along with TBs

(Madhuvanahalli _ Chamarajanagar

Line)

220 KV 83.12 30-03-2012

TUMKUR TRANSMISSION ZONE

1 Davanagere

66 kv DC towers from 220 KV DVG

to 400 KV Guttur (Davanagere-

Guttur 66 KV SC_ line)

66 KV 45.24 30-10-2011

2 Davanagere

66 KV SC tapping line from 66 KV

SRS Davanagere Harihara-Hospet

SC line (Harihara Town_Line)

66 KV 0.24 13-01-2012

3 Tumkur

66 KV Sc line on DC towers from

Hiriyur Javagondanahalli-Sira

line(Dasudi_line)

66 KV 28.42 13-02-2012

TOTAL LENGTH IN CKMs 875.92

c. Zone-wise details of AUGMENTATION OF STATIONS during the year under report:

Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

BANGALORE TRANSMISSION ZONE

1 Kolar Malur

Replacement of 1X12.5

MVA by 20 MVA 66/11

KV transformer

7.50 66 KV Replacement 21-05-2011


Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

2 Kolar Lakkur

Replacement of 8 MVA

by 12.5 MVA 66/11 KV

transformer

4.50 66 KV Replacement 31-05-2011

3 Kolar Tekal


by 12.5 MVA 66/11 KV

transformer

4.50 66 KV Replacement 02-06-2011

4 CB Pura Peresandra


by 12.5 MVA 66/11 KV

transformer

4.50 66 KV Replacement 02-06-2011

5 Kolar Kyasamballi

Replacement of 12.5

MVA by 20 MVA 66/11

KV transformer

7.50 66 KV Replacement 16-06-2011

6Bangalore

UrbanEPIP

Providing additional

1X31.5 MVA, 66/11 KV

Tr.

31.50 66 KV Additional 01-10-2011

7 Ramanagar Bevoor


MVA by 1X12.5 MVA

66/11 KV Tr

6.20 66 KV Replacement 28-11-2011

8Bangalore

UrbanAttibele

Replacing 1 X 12.5

MVA by 1x20 MVA

transformer

7.50 66 KV Replacement 15-12-2011

9 Ramanagar AgalakoteAdditional 1 X 8 MVA

66/11 KV Transformer8.00 66 KV Additional 17-01-2012

10Bangalore

Urban

St.Johns

wood

Replacement of 1 X 20

MVA,66/12.1 KV by 1 X

20 MVA 66/11 KV Tr.

- 66 KV Replacement 21-01-2012

11 Kolar Mulbagal

Replacing 1 X 12.5

MVA by 1 X 20 MVA

transformer

7.50 66 KV Replacement 07-02-2012

12 Kolar AvaniAddnl. 1 X 8 MVA, 66/11

KV Tr.8.00 66 KV Additional 30-03-2012

13 Kolar H GollahalliAddnl. 1 X 8 MVA, 66/11

KV Tr.8.00 66 KV Additional 31-03-2012

BAGALKOT TRANSMISSION ZONE

1Uttara

KannadaSirsi

Providing 10 MVA,

110/11 KV Transformer

at 220 KV Switching

station at Sirsi

10.00220/110

KVAdditional 21-05-2011


Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

2 Gadag Naregal

Replacement of 1X5

MVA by 1X10 MVA,

110/11 KV Tr.

5.00 110 KV Replacement 21-05-2011

3 Belgaum Gokak

Replacement of 1X10

MVA, 110/11 KV

Transformer by 1X20

MVA, 110/11 KV Tr.

10.00 110 KV Replacement 17-06-2011

4 Gadag Gadag

Replacement of

2X10 MVA by

2X20MVA,110/33 KV Tr.

(1 Transformer replaced

during previous fi nancial

year)

10.00 110 KV Replacement 05-07-2011

5 Bagalkot Rampura

Creating 33 KV

reference at existing

110 KV Rampura S/s by

providing 1X10 MVA,

110/33 KV Transformer

10.00 110 KV Additional 22-08-2011

6 Belgaum Ankali_augAddl. 20 MVA, 110 / 33

KV tr.20.00 110 KV Additional 27-12-2011

7 BelgaumNippani_

aug

Creating 33 KV

reference and installing

1 X 20 MVA, 110/33 KV

Transformer at Nippani

110kv S/s

20.00 110 KV Additional 09-01-2012

8 Dharwad

Navanagar

(Hubli)_

aug

Addnl 1 X 10 MVA

110/11 KV Tr10.00 110 KV Additional 04-02-2012

9 DharwadGopanakoppa

_aug

Addnl 1 X 10 MVA


10 BelgaumMache_

aug

Replacing 1 X 10 MVA

110/11 KV Tr by 1 X 20

MVA 110/11 KV Tr

10.00 110 KV Replacement 18-03-2012

11 HaveriHanagal_

aug

Repl of 1 X 10 MVA

110/33 KV Tr by 1 X 20

MVA Tr.

10.00 110 KV Replacement 20-03-2012

12 DharwadMruthyunjayanagar

_aug

Creating 33 kv reference

by installing 1 X 20 MVA

110/33 kv Tr.

20.00 110 KV Additional 29-03-2012

13 Dharwad Belur_augAddnl. 1 X 10 MVA,

110/11 KV Tr.10.00 110 KV Additional 31-03-2012


Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

GULBARGA TRANSMISSION ZONE

1 Bellary UP Halli

Replacement of 1X 6.3

MVA, 66/11 KV Tr. By

1x12.5 MVA, 66/11 KV

Tr.

6.20 66 KV Replacement 13-04-2011

2 RaichurRaichur_

aug

Repl 1X10MVA Tr by

1X20 MVA 110/11 KV Tr10.00 110 KV Replacement 30-09-2011

3 BellaryThorangal_

aug2

Repl. 1X10MVA,

110/33KV by 1X20MVA,

110/33KV Transformer.

10.00 110 KV Replacement 16-11-2011

4 KoppalSriram

Nagar_aug

Addl 1 X 10 MVA 110/11


5 KoppalVenkatagiri_

aug

Addl 1 X 10 MVA 110/11


6 BellaryKampli_

aug

Providing Additional

1X10 MVA, 110/11 KV

Tr.

10.00 110 KV Additional 12-01-2012

7 BellaryDonimalai_

aug

Replacement of 1 X

10 MVA, 110/33 KV

Transformer by 1 X 20

MVA 110/33 KV Tr

10.00 110 KV Replacement 24-01-2012

8 BellaryC.J.Halli_

aug

Repl. 1 X 8 MVA,

66/11KV by 1 X

12.5 MVA, 66/11 KV

Transformer.

4.50 66 KV Replacement 28-02-2012

9 BellaryHampasagar

_aug

Addnl. 8 MVA, 66/11 KV

Tr.8.00 66 KV Additional 29-02-2012

10 RaichurKavital_

aug

Providing addnl 20 MVA,


11 BellaryTekkalkote_

aug

Providing additional

1X10 MVA, 110/11 KV

Tr.

10.00 110 KV Additional 21-03-2012

12 RaichurChikkasugar_

aug


1X20 MVA, 110/11 KV &

1X20 MVA,110/33 kV Tr.

40.00 110 KV Additional 24-03-2012

HASSAN TRANSMISSION ZONE

1Chikkama

galur

Lakkavalli_

aug

Additional 1 X 8 MVA



Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

2 Shimoga Kumsi_augAddln. 1X10 MVA,

110/33-11 KV Tr10.00 110 KV Additional 13-10-2011

3 Shimoga Alkola_aug


1X10 MVA, 110/11 KV

Tr.

10.00 110 KV Additional 10-11-2011

4Chick

magalur

Tarikere_

aug

Replacement of 1 X 10

MVA by 1 X 20 MVA

110/11 KV Tr

10.00 110 KV Replacement 25-01-2012

5 ShimogaMandli_

aug

Repl of 1 X 10 MVA by 1

X 20 MVA 110/11 KV Tr.10.00 110 KV Replacement 03-02-2012

MYSORE TRANSMISSION ZONE

1 Kodagu Ponnampet

Additional 6.3/8 MVA

66/11 KV transformer

and releasing 5 MVA


6.30 66 KV Replacement 14-06-2011

TUMKUR TRANSMISSION ZONE

1 Chitradurga GaragaProviding additional 1X8

MVA, 66/11 KV Tr.8.00 66 KV Additional 23-04-2011

2 DavanagereDavanagere_

aug

Additional 1X20 MVA


3 Tumkur Mallasandra


MVA by 2X12.5 MVA

transformer

12.40 66 KV Replacement11-07-2011

4 Davanagere AnagoduAdditional 8 MVA 66/11

KV transformer8.00 66 KV Additional 11-08-2011

5 Davanagere KukkawadaAddnl. 8 MVA, 66/11 KV


6 Davanagere PallaghuttaAddnl. 8 MVA, 66/11 KV

Tr.8.00 66 KV Replacement 18-08-2011

7 TumkurBellavi_

aug

Repl of 2 X 8 MVA 66/11

KV Tr by 2X12.5 MVA Tr9.00 66 KV Replacement 03-10-2011

8 TumkurHonnavalli_

aug

Addl 10 MVA 110/11


9 ChitradurgaTuruvanur_

aug

Providing additional 1 X

8 MVA, 66/11 KV Tr.8.00 66 KV Additional 13-02-2012


Sl.

No.District

Name

of the

Station

CapacityMVA

Added

Voltage

class in

KV

Nature of

work

Date of

Commissioning

10 DavanagereHalvagilu_

aug

Addnl. 8 MVA, 66/11 KV


11 ChitradurgaMyalanahalli_

aug

Replacement of existing

1X 6.3 MVA,66/11 KV

Transformer by 1 X 12.5

MVA Tr

6.20 66 KV Replacement 14-03-2012

12 DavanagereYaragunta_

aug

Replacement of 2 X 12.5

MVA by 2 X 20 MVA


(1 Transformer

augmented)

7.50 66 KV Replacement 29-03-2012

TOTAL MVA ADDED 576.3

ABSTRACT

(a) NEW STATIONS COMMISSIONED:

Sl.

No.Voltage

Programme upto the

end of March 2012

Progress achieved upto the

end of March 2012

NOs. MVA NOs. MVA

1 400 KV - - - -

2 220 KV 6 1593.5 1 208

3 110 KV 25 460 16 280.00

4 66 KV 20 314.3 9 164.5

TOTAL 51 2367.8 26 652.50

(b) TRANSMISSION LINES COMMISSIONED:-

Sl.

No.Voltage

Programme upto the

end of March 2012


end of March 2012

NOs. CKMS NOs. CKMS

1 400 KV 2 664 - -

2 220 KV 6 283.127 4 387.84

3 110 KV 25 258.202 20 276.47

4 66 KV 20 131.915 19 211.61

TOTAL 53 1337.244 43 875.92


(c) AUGMENTATION OF STATIONS :-

Sl.

No.Voltage

Programme upto the

end of March 2012


end of March 2012

NOs. MVA NOs. MVA

1 400 KV 2 1000 - -

2 220 KV - - 1 10.00

3 110 KV 31 405.00 26 325.00

4 66 KV 14 121.5 29 241.30

TOTAL 47 1526.5 56 576.30

SUPERVISION CONTROL & DATA ACQUISITION FOR LOAD

AND ENERGY MANAGEMENT

KPTCL is a pioneer in establishing:

The largest SCADA network in the country with respect to coverage and number •

of Control centres.

The largest individually owned VSAT network •

The fi rst in the country among the State Utilities to provide Control Centres to all •

ESCOMs and Chief Engineers

The fi rst utility in the country to integrate multiple automations systems.•

The fi rst State Utility to envisage a Disaster Recovery Hub for the SCADA Master •

Control Centre

Integrated Extended SCADA Features:

Covers all receiving stations ranging from 33kV to 400kV•

Real time data acquired from all Major Generating stations.•

Real time data acquired from all IPP and NCEP injections •

Data and control of all feeders from 11 kV to 400 kV.•

Real time support for Load Dispatch and control•

Area Load Despatch Centre for Six Transmission Zones•

Distribution Control Centre for Five ESCOMs•

Upgradation of State Load Despatch Centre.•

Voice communication to all stations on VSAT•


Availability Based Tariff displays and functions.•

Monitoring of Open Access Generations.•

Real time Energy Data Acquisition from all Interface points.•

Energy Management System and Distribution Management System•

Owned VSAT Hub and network with leased bandwidth from INSAT 3A for •

communication for the entire network

Disaster Recovery Hub for the Main Control Centre•

First step towards total remote operation of Sub-stations•

Disturbance analysis by playback of Grid operation.•

Utilization for Special protection scheme at Generation corridors•

Integrated Extended SCADA Stations covered:

ZONE STATIONS

PHASE-I PHASE-2

BANGALORE 153 58

TUMKUR 111 54

MYSORE 67 42

HASSAN 87 52

GULBARGA 63 55

BAGALKOT 107 65

TOTAL 588 326

914

KPTCL has provided SCADA systems for 9 Nos of IPPs in addition to the above.

Following balance works are to be undertaken:

Phase II works – SCADA, RTU and VSAT at 55 Nos of Stations•

Intra State ABT system (Customisation in progress)•

Energy Management Functions•

Energy Audit and Energy billing Functions•

Operator Training Simulator•

TENDERING AND PROCUREMENT

During the year 2011-12, KPTCL has procured various equipments like, Power

Transformers, switchgears, Circuit Breakers, Current Transformers, Isolators, Potential


Transformers CVTs, Insulators, Transformer oil required for augmenting the installed capacities

in sub stations, besides other associated equipment like Battery Chargers, Battery Sets for

replacement of deteriorated batteries in stations. In addition to this, testing and measuring

equipments like fl ash point apparatus, on line DC Earth fault locators, Interface tension meter,

transformer winding resistance meter etc., required for meeting day to day needs of Relay

Testing and R&D Wings have also been procured.

Further, 11 KV Switchgears especially required for implementation of ‘Niranthara Jyothi’

Schemes in ESCOM’s for putting up independent and dedicated 11 KV feeders for catering

the loads of both lighting and motive power installations of the villages on 24 hrs basis, is being

procured from MEI.

During the year 2011-12 KPTCL has awarded works covering 37 stations related to

construction of new Stations and Lines of 66 KV, 110KV & 220 KV & 400KV voltage class and

413.81 Kms of 66/110/220 KV Over Head including UG cable lines valued at Rs.75585.64

lakhs.

Amongst the works awarded, some of the specialized works included are:

Establishing 400KV GIS Sub-Station at Mylasandra and 66/11KV GIS Station at a)

National College & Jayanagar.

Renovation and Modernization works at 220KV substations at Hubli, Ambewadi b)

and Somanahalli.

Providing 3c) rd 100MVA Transformers at 220KV substations at Gowribidanur,

Gadag and Karwar.

220KV evacuation lines from the 400KV substation of PGCIL at Bidadi.d)

Laying of 66KV 1000 sqmm UG cable in Bangalore city from e)

Vrushabhavathi – Sir. M.V. Layout.1)

Vikastech Park – Shobha Developers. 2)

Laying of 110kV UG Cable from Kavoor – Bejai. f)

Following is an abstract of award of works & Procurement during the fi nancial year

2011-12.

WORKS:-1.

Tendered works for the year 2011-12

No. of Tenders

fl oated

Amount in

Rs. LakhsWorks involving

110kV and

below works51 35114.94

66kV Air Insulated Stations - 15Nos.

66kV O.H Lines - 206.6Kms (6Nos.)

66kV UG Cable - 3.04Kms (1No.)

66kV TBs - 3Nos.

110kV Air insulated Stations - 17Nos.

110kV OH Lines-254.7Kms (3Nos).

110kV UG Cable - 10.68Kms (2Nos).

110kV TBs -4Nos.

66kV HTLS - 6Nos (37.62Kms).


No. of Tenders

fl oated

Amount in

Rs. LakhsWorks involving

220kV &

above works21 51987.95

400kV, 500MVA Additional Transformers - NIL.


400kV GIS station - 1No.

220kV GIS station - NIL.

220kV R&M Works - 4Nos.

220kV O.H Lines - 159.71Kms.



220kV TBs - 15Nos.

110kV TBs - 5Nos.

66kV TBs - NIL.

Augmentation works (Addnl 100MVA Trfs) - 5Nos.

Dismantling 220kV line - 42Kms.

110kV and

below works44 28085.34

66kV GIS Station - 2Nos.

66kV Air Insulated Stations - 14Nos.

66kV O.H Lines - 119.73Kms(3Nos.)

66kV UG Cable - 9.1Kms(2Nos.)

66kV TBs - 6Nos.


110kV OH Lines-274.06Kms(2Nos).

110kV UG Cable - 5.85Kms(1No).

110kV TBs - 7Nos.

220kV &

above works10 23750.15

400kV, 500MVA Additional Transformers - NIL.

220kV Air insulated Stations - NIL.

400kV GIS station - 1No.

220kV GIS station - NIL.

220kV R&M Works - 3Nos.


110kV O.H Lines - NIL.

66kV O.H Lines - NIL.

220kV TBs - 5Nos.

110kV TBs - NIL.

66kV TBs - NIL.

Augmentation works (Addnl 100MVA Trfs) - 3Nos.

Dismantling 220kV line - 42Kms.


2. GOODS:-

Procurement of Goods for the year 2011-12

DescriptionsAmount in

Rs. Lakhs

Works involving

Power Transformers, Circuit Breakers, Current

Transformers, Battery Sets, Battery Chargers,

11 KV Switchgears, Isolators, PTs, CVTs,

Insulators, Transformer oil, NFES, uniforms,

LA, Aluminum ladder, Protection couplers,

wave Traps, furniture, Printer, Laptop, Services

like canteen attender, security services and

Vehicles.

10750.72

Station capacity

augmentation, replacements

and testing and measuring

activities etc.,

The total cost towards award of works, goods and services during the year 2011-2012 is

Rs. 77665.52 lakhs.

NEW INITIATIVES TAKEN UP BY THE UTILITY DURING THE YEAR UNDER REPORT:

GIS SUB-STATIONS1.

GIS Sub-station is a good option in cities where availability of large extent of land for AIS

station is diffi cult and land cost is high.

Gas Insulated Sub-station(GIS) is a compact, multicomponent assembly enclosed

in a ground metallic housing in which primary insulating medium is compressed Suplhur

Hexafl oried (SF6) gas.

Advantages of GIS Sub-stations:

GIS has small ground space requirements (about 10 to 25 percent of space required 1.

for AIS)

Gas Insulated Sub-station have easy maintenance (nearly Zero maintenance).2.

Less fi eld erection time and less erection cost.3.

HYBRID SWITCH GEAR2.

With the advent of GIS a number of manufacturers have come out with interface modules

which are in between AIS and GIS. The sub-station capacity expansion by compaction of

space occupied by AIS equipment is therefore possible with the use of Hybrid Switchgear.


Hybrid solutions combine fi ve functions of traditional AIS Sub-station, namely Circuit Breaker,

Disconnector, Earth Switch, current Transformer and Voltage Transformer into one SF6

encapsulated module. It has following advantages:

Space saving upto 50-60% can be achieved compared to an AIS station in low 1.

voltage system

It has high reliability due to usage of GIS components and technology.2.

Installation is fast and easy.3.

It allows fl exibility in application of design and layout.4.

HTLS (HIGH TEMPERATURE LOW SAG) CONDUCTORS3.

The HTLS ACCR (Aluminium Conductor Composite Reinforced) conductor is newly

developed and consists of the core of Aluminium Composite wires surrounded by temperature

resistant Aluminium – Zirconium wires. These conductors are used for the existing towers

(of short lines) to uprate the current carrying capacity without altering the Sag. For same sag

the thermal rating of the HTLS Conductor is almost twice that of ACSR Conductor (Aluminum

Conductor with Steel reinforcement).

KPTCL has already prepared the specifi cation and tenders have been fl oated for

existing line, in and around Bangalore city.

SUBSTATION AUTOMATION SYSTEM (SAS)4.

The Substation Automation System (SAS) is installed in Sub-Station to control and

monitor all the substation equipment’s from Remote Control Centre i.e. from LDC as well

as from local control centre (from station Control Room). 24 numbers of 220kV Stations are

provided with SAS.

POST PROJECT ANALYSIS STUDY ENTRUSTED TO M/S ABB LIMITED.5.

Out of 300 Sub-stations commissioned during 2007 to 2010 it was decided to

conduct an analysis of Post Project benefi ts of 20% of the commissioned Sub-stations i.e 60

Sub-stations. The fi rm has analysed the various parameters like energy savings, cost to benefi t

ratio, Voltage regulation, spare capacity available for future load growth etc., of 30 Stations

and the fi ndings of the study is that tail end voltages have improved, the energy savings are

validated , the cost to benefi t ratio is 3.49 justifying the investments made.


LOAD F6. ORECAST STUDY FOR 12TH AND 13TH PLAN PERIOD AND LONG TERM

PERSPECTIVE PLAN

KPTCL has independently selected consultancy fi rm through tendering process and

awarded the work of Energy/Demand forecast to M/s PRDCL. The scope also includes

Generation planning, Perspective plan for 12th & 13th Plan period.

RELAY AND TESTING:

Details of total 1. number of Power Transformers existing as on 31.3.2012:

Sl.

No.

Capacity of the

Transformer (in

MVA)

RT Circle

Bangalore

RT Circle

Hassan

RT Circle

Hubli

RT Circle

GulbargaTotal

1 315 2 3 - - 5

2 167 14 - - - 14

3 150 13 - - - 13

4 100 61 39 39 23 162

5 75 - 2 - - 2

6 67.5 2 - - - 2

7 60 1 - - - 1

8 55 - - 2 - 2

9 50 1 - 1 - 2

10 31.5 58 - - - 58

11 20 191 52 114 69 426

12 15 2 - - - 2

13 12.5 154 97 3 9 263

14 10 44 93 300 163 600

15 8 215 149 1 17 382

16 6.3 69 52 - 12 133

17 5 2 9 3 5 19

18 1 - - 2 - 2

TOTAL 829 496 465 298 2088


2. Details of Power Transformers repaired during the year 2011-12:

Sl.

No.

Power

Transformer

failed at

Voltage

class of

Transformer

in KV

Capacity

in MVAMake Repaired by Remarks

I RT Circle, Bangalore

1 66kV BMTC 66/11 20 BB BB Commissioned at

Kanakapura S/s on 26.09.11.

2 220kV

Hoody66/11 31.5 BB BB

Commissioned at EPIP S/s

on 01.10.11.

3 66kV

Victoria66/11 20 NGEF SVS

Commissioned at Vicoria S/s

on 29.07.2011.

4 66kV

Banneraghatta66/11 20 Apex SPEC

Commissioned at

Bannerghatta S/s. on

14.09.11

5 220kV

Hoody220/66/11 100 NGEF KK Rao

Commissioned at HSR

Layout R/s on 25.02.2012.

6 220kV

Malur220/66/11 100 Apex KK Rao

DI issued to 220kV

Gowribidanur R/s. vide no.

8259-65 on 31.10.11 erection

work is under progress

766kV

Tumkur 66/11 12.5 BBL TTL, Mumbai

Commissioned at Madhugiri

on 17.11.11

8

66kV

Sahakari

nagar

66/11 20Volt

AmpTTL, Mumbai

Commissioned at

Gowribidnur R/s on 12.01.12

9220kV

Somanahalli220/66/11 100 BHEL

Vidyuth

Transformers,

Gujarat

Transformer commissioned

at Somanahalli R/s on

02.03.2012.

10 66kV Anekal 66/11 20Volt

Amp

Standard

Transformers,

Udupi

Transformer alloted to

Electronic City S/s on

13.03.12.

1166kV

Challakere66/11 12.5 Apex

Blaze

Electricals,

Hospet

Final inspection conducted

on 29.02.12 and 01.03.12.


Sl.

No.

Power

Transformer

failed at

Voltage

class of

Transformer

in KV

Capacity


1266kV RR

Nagar66/11 20 EMCO

TTL,

Mumbai

Allotted to Adugodi on

29.03.2012

II RT Circle, Hassan

1110kV

Kallusadarahalli110/11 10 SPEC Departmentally

Put back to service after

repairs at site by RT staff

266kV Hally

mysore66/11 5 Kirloskar Departmentally

Put back to service after

repairs at site by RT staff

3110kV

Konaje110/11 10 Apex Departmentally

Commissioned at Salettur

MUSS on 5.3.2012

4110kV

Guruvayankere110/33 20

Indo

techDepartmentally

Repaired at Kavoor repair

bay, drying process taken

at Standard Tr. Manipal

& tested on 07.07.2011

& commissioned on

18.07.2011

5220kV

Huygonahalli66/11 8 SPEC Departmentally

Repair works completed and

shifted to Doddabyadarahally

on 24-04-2012

666kV

Honnalli66/11 12.5 EMCO Departmentally

Repaired and put back to

service at Honnally on 23-

01-2012.

III RT Circle, Hubli

1 110kV

Hirekerur110/11kV 10

GEC

Alstom Departmentally 110kV Hangal on 19.10.2011

2 110kV

Moratagi110/11kV 10

GEC

Alstom Departmentally

110kV Gopanakoppa on

28.02.2012

3110KV

Navanagar110/11KV 10MVA

Volt

AmpDepartmentally

110KV Navanagar on

04.02.12

4110KV

Udakeri110/11 KV

10

MVASPEC SPEC & ER Udakeri on 19.03.12


Sl.

No.

Power

Transformer

failed at

Voltage

class of

Transformer

in KV

Capacity


5110KV

Bagalkot110/36.3 KV

10

MVANGEF

Peninsula

Heavy Elec.

Pvt.Ltd

Mudhol on 17.02.12

6220KV

Bagalkot220/110 KV 100 EMCO EMCO & ER 220KV Bagalkot on 07.06.11

IV RT Circle, Gulbarga

1220kV

Sedam 110/11 10 APEX Departmentally

Commissioned on

28.06.2011

2110kV

Chitaguppa110/11 10 SPEC Departmentally

Commissioned on

24.01.2012

3110kV

Kapanoor 110/11 10 NGEF Departmentally

Commissioned on

12.03.2012

4

110/11 kV

Manna-E-

Khelli

110/11 kV 10

NGEF

280005

5761

Departmentally Repaired and charged on

04.06.2011

5110/11 kV

Humnabad110/11 kV 10

NGEF

280004

6879

M/s Precision

Engineering

Works,

Bangalore

Shifted the Trf. to Shahapur.

6110/33-11 kV

Rajeshwar110/33-11kV 10

EMCO

LT-

1153/1

3039

EMCO

WGP

Commissioned On

22.07.2011

7110/33-11 kV

Kustagi110/33-11kV 20

EMCO

HT-

1391/1

178

M/s K.K.Rao

Eng Works,

Hyderabad

Repaired & delivered at 220

kV R/S Raichur Aug-2011

8110/33-11 kV

Manvi110/33-11kV 10

NGEF

28000

46881

M/s Tarapur,

Mumbai

Repaired received at

Gulbarga (South) 21.10.2011

9110/11 kV

Manvi110/11kV 20

EMCO

HT-

1712/1

2721

EMCO

WGP

Commissioned On

10.11.2011


Sl.

No.

Power

Transformer

failed at

Voltage

class of

Transformer

in KV

Capacity


10110/11 kV

Khanapur110/11kV 10

EMCO

LT-

1153/1

3035

EMCO

(FWGP)

Commissioned On

26.11.2011

11110/11 kV

Lingasugur110/11kV 100

NGEF

68000

00185

M/s K.K.Rao

Eng. Works,

Hyderabad

Commissioned at Munirabad

power house on 17.02.2012

FOREST WING

During the year 2011-12 State Government Orders were issued for handing over the

corridor in forest areas for four Transmission Lines viz., 1) Vajramatti – Mantur Line, 2) Malur

– Somanahalli Line, 3) Shantigrama (Hassan) – Nandikur (Udupi) Line and 4) BTPS to Hiriyur

Line. During the year, the Ministry of Environment and Forests, Government of India issued

Stage-I approval to 1) Kodihalli – Hunasanahalli Line, 2) Hassan – Melagodu Transmission

Lines and 3) and Madavu Sub-Station.

The diversion proposals of following Transmission Lines seeking forest land are

at various stages of processing by the State and Central Governments. These cases are

being monitored constantly and pursued effectively for expeditious approval under Forest

(Conservation) Act 1980:

K1. odihally to Hunsanahally Line

Madavu to Sulya2.

Hulical to Varahi3.

Guruvayanakere to Netlamadanur4.

Hassan to Melagodul Line5.

Konanadur Line6.

Substaion at Madavu7.

Mulibetta to Siddakatte8.

Virajpet to Madikery9.

Lingadahally to Hemmedoddy10.

Substation at Kansur Village11.

110/11 Kv Substation at Bilalkanda Village12.

110 Kv Substation at Hattaragi13.

110/11 Kv Substatio14. n at Banavasi


Gunjur Palya Line15.

Temporary Diversion of 0.837 HA in Belur SF(Hassan-Nandikur Line)16.

REGULATORY AFFAIRS

Transmission Tariff:1. KPTCL fi led its Annual Performance review application for

FY 2010-11 on 25.11.2011 based on Audited Annual Accounts.

In the Annual Performance Review, an ARR of Rs. 1452.60 Crores was fi led 2.

against a Revenue of Rs. 1215.22 Crores.

Revised ARR for FY-12 and Revised Transmission Tariff Application for FY-13 3.

was fi led on 02.03.2012. Revised ARR of Rs. 1918.61 Crores was fi led against

an approved ARR of Rs. 1542.13 Corers for FY -12.

Revised Transmission Application was fi led with Revised ARR of Rs. 2266.82 4.

Crores against approved ARR of Rs. 1769.74 Crores for FY-13.

Petitions:5. 33 petitions were fi led before KERC during FY 2011-12 and KERC

passed 13 Orders during the year.

HUMAN RESOURCES AND DEVELOPMENT

Details of training conducted during the year under report are as under:

Training programme for women offi cers/ offi cials.a.

Training on fi rst aid and fi re fi ghting.b.

Training on maintenance of Sub-station as well as maintenance of battery.c.

Deputation of employees/ offi cers to external training programmes.d.

Training on Pre- retirement counseling for all cadres of employees of ESCOMs e.

and KPTCL.

Induction training programme for newly recruited AEs and JEs 2010 batch (left f.

out batch) and NGEF employees after confi rmation.

Personality Development Programme for all Offi cers and employees of g.

KPTCL.

Pre-employment training programme for Junior Meter Readers of CESC.h.

Refresher training programme for all technical staff of KPTCLi.

Orientation training programme for SA1 & 2 and SM 1&2 of KPTCL.j.

Pre-employment training programmee for newly recruited AE/JE’s on transfer k.

from JE to AE.


Staff Pattern of Offi cers/Employees in KPTCL is as follows:

Group Sanctioned (2007) Working Vacant

A 1174 929 245

B 1436 964 472

C 5572 3529 1943

D 6218 3861 2357

Total 14400 9383 5017

Important Administrative orders issued during 2011-12 are as follows:

Order No: KPTCL/B16/18239/2010-11 dated: 12.05.2011 adopting Government 1.

Order with regard to enhancement of rates of Pension/Family Pension w.e.f

01.04.2006 for those of employees who had retired prior to 01.07.1993 and who

are 80 years of age and above.

Notifi cation for amending the method of recruitment prescribed in Sl.No.12 A(i) 2.

Junior Engineer (Ele)/ Store keeper GR-II under Chapter VI of the Karnataka

Electricity Board Recruitment and Promotion Regulations, Employees (Probation)

Regulations and Employees (Seniority) Regulations vide no. KPTCL/B16/B5/

BGM/11836/2009-10 dated: 23.05.2011 duly including Information Science and

Mechanical Engineering disciplines.

Notifi cation for amending the Regulation (5)-Application for appointment of KEB 3.

Recruitment (Appointment on Compassionate Grounds) Regulations, 1997

vide no. KPTCL/B5/721/MYR/14768/ 10-11 dated: 23.05.2011 where in the

dependent son/ daughter of the deceased employee if a minor he/she must

have attained the age of 18 years within one year from the date of death of an

employee and he/she must make an application for appointment within one year

there after.

Order No. KPTCL/B16/B14/4977/05-06 dated: 29.08.2011 for sanction of lump 4.

sum compensation to the dependents of deceased employees (based on

their length of service) covered under the New Defi ned Contributory Pension

Scheme.

Order No. KPTCL/B16/23050/11-12 dated: 09.09.2011 for revising the pay 5.

scales of workmen w.e.f. 01.04.2010.

Order No. KPTCL/B16/23051/11-12 dated: 09.09.2011 for revising the pay 6.

scales of offi cers w.e.f. 01.04.2010.

Notifi cation for amending the Regulation 6(1)-Appointment by the Competent 7.

Authority of KEB Recruitment (Appointment on Compassionate Grounds)


Regulations 1997, where in the Appointing Authority (SEE of O & M Circles

of ESCOMs) is delegated the powers of processing of compassionate ground

appointment claims vide no. KPTCL/B5/721/80-81 dated: 17.09.2011.

Notifi cation was issued amending the cut -off marks prescribed for the post of 8.

Assistant Lineman under Direct Recruitment quota in Note(1) of Regulation 6(a)

(iii) under Chapter I of KEB Recruitment and Promotion Regulations Employees

(Probation) Regulations and Employees (Seniority) Regulations vide No: KPTCL/

B16/7962/09-10 dated: 24.09.2011.

Circular instructions/ guidelines for processing of compassionate grounds 9.

appointment claims at O & M Circle level vide No: KPTCL/B5/721/80-81 dated:

23.09.2011.

Consequent to revision of pay scales Order No. KPTCL/B16/23050/11-12 dated: 10.

24.11.2011 was issued duly modifying the relevant provisions of Classifi cation

of Appointments in KEB Recruitment and Promotion Regulations, Classifi cation

of employees, regulating the payment of TA and payment of Advances to

employees.

Order No. KPTCL/B16/4677/06-07 dated: 31.12.2011 was issued adopting the 11.

Government Order with regard to payment of Interim relief to pensioners and

family pensioners.

INTERNAL AUDIT

Internal Audit is being conducted with reference to the Sanctions, Rules/Regulations

and orders issued by the KPTCL or other Competent Authority, instructions contained in the

KEB Accounts Manuals, BESR and other Regulations / Instructions issued from time to time.

STATEMENT SHOWING THE DETAILS OF EXCESS / PAYMENTS / IRREGULAR

EXPENDITURE AND AUDIT PARAS ISSUED DURING THE YEAR 2011-12.

(April-2011 to March-2012)

(Rs. In Lakhs)

ParticularsOpening

Balance

Pointed

OutTotal

Recovery /

Regularized

Closing

Balance

Excess Payments 165.58 73.85 239.43 139.25 100.18

Irregular expenditure 865.69 322.79 1188.48 219.08 969.40

Audit Reports (in Nos) 928 1382 2310 1553 757


CORPORATE GOVERNANCE

KPTCL believes transparency, responsibility, accountability and fairness in all aspects

of its operations.

Board of KPTCL believes and supports Corporate Governance Practices ensuring

observance of best practices in all its dealings.

The Governance process in the company includes an effective post- meeting follow-

up, review and reporting process for Action Taken/pending on decisions of the Board & Board

Sub-committees.

As on 31st March 2012, the Board of Directors comprised of 15 members. All the

Directors take active part in the proceedings of Board and Sub- Committee meetings which

add value to the decision making process.

Board Meetings:

The meetings of the Board of Directors are scheduled in advance for which notice is

given to each Director in writing. The Agenda and other relevant Notes are circulated to the

Directors well in advance.

During 2011-12, the following Board meetings were held on the dates as mentioned

below:

Sl. No. Meeting No. Held on

1 78th Meeting 26.04.2011

2 79th Meeting 24.08.2011

3 80th Meeting 28.09.2011

4 81st Meeting 16.01.2012

Board Sub-Committees:

The Sub-Committees of the Board were constituted not only to give more focused

attention on important issues but also to expedite decisions on such issues. The Board

has delegated certain specifi c powers to some of the Sub-committees towards expediting

decisions.

Central Purchases Committee:1.

Central purchases Committee was formed to consider all cases of purchases whether

for Transmission Zone, Projects & Award of Station/Line Works or any other works and all

matters relating to purchases which are beyond the powers delegated to the Chief Engineers,

Electricity upto a fi nancial implication of Rs. 20 Crores.


The composition of the Central Purchases Committee is as follows:

Sl. No. Members Designation

1 Managing Director, KPTCL Chairman

2 Director (Finance) , KPTCL Member

3 Director (Transmission), KPTCL Member

Company Secretary, KPTCL Convener

The concerned Zonal Chief Engineer will be the Coordinating Offi cer.

During the year under report, CPC meetings were held as follows:

Sl.No. Meeting No. Held on

1

115a) th Tendering & Procurement

96b) th Transmission Zone, Bangalore

56c) th Transmission Zone, Bagalkote

39d) th Transmission Zone, Gulbarga

11-05-2011.

2.





30e) th Transmission Zone, Tumkur

31-05-2011.

3.




41d) st Transmission Zone, Gulbarga

31e) st Transmission Zone, Tumkur

62f) nd Transmission Zone, Mysore

30g) th Transmission Zone, Hassan

30-07-2011 & adjourned

to 04-08-2011, 05-08-

2011 & 18-08-2011.

4.118a) th Tendering & Procurement

31b) st Transmission Zone, Hassan

20.09.2011.

5.




42d) nd Transmission Zone, Gulbarga

32e) nd Transmission Zone, Tumkur

63f) rd Transmission Zone, Mysore

32g) nd Transmission Zone, Hassan

09.11.2011.


Sl.No. Meeting No. Held on

6.


60b) th Transmission Zone, Bagalkote

43c) rd Transmission Zone, Gulbarga

33d) rd Transmission Zone, Tumkur

64e) th Transmission Zone, Mysore

33f) rd Transmission Zone, Hassan

14.12.2011.

7.

121a) st Tendering & Procurement


44c) th Transmission Zone, Gulbarga

34d) th Transmission Zone, Tumkur

65e) th Transmission Zone, Mysore

27.12.2011 & adjourned

to 28.12.2011&

30.12.2011

8.35a) th Transmission Zone, Tumkur

66b) th Transmission Zone, Mysore04.02.2012.

9.

122a) nd Tendering & Procurement

101b) st Transmission Zone, Bangalore

61c) st Transmission Zone, Bagalkote


36e) th Transmission Zone, Tumkur

34f) th Transmission Zone, Hassan

21.02.2012 & adjourned

to 5.03.2012, 21.03.2012

& 30.03.2012

Borrowings Sub Committee:2.

The Borrowings Sub-Committee has been delegated powers to borrow Long Term

Loans from Banks/Financial Institutions on behalf of the Board from time to time upto the limit

of Long Term Borrowings authorized by the shareholders at the General Meeting from time to

time.

The sub-committee consists of the following members:

Principal Secretary to Govt., Energy Department, GoK,1.

Principal Secretary to GoK, Finance Department2.

Managing Director, KPTCL3.

Director (Finance), KPTCL4.


During the year under report, the Borrowing Sub-Committee held its meeting as below:

Sl.No. For Availing Finance from Amount Rs. in Crores Held on

1 M/s Punjab & Sind Bank 200.00 03.02.2012

3. Audit Committee:

In accordance with the new section 292(A) of Companies Act, 1956, KPTCL has

constituted an Audit Committee in the interest of good corporate governance.

The composition of the Audit Committee is as follows:

Sl. No. Members Designation

1 Principal Secretary, GoK, Energy Dept. Chairman/ Chairperson

2 Principal Secretary, GoK, Finance Dept. Member

3 Sri P. Manivannan Member

4 Director (Transmission), KPTCL. Member

Company Secretary, KPTCL Convener

During the year under report, the Audit Committee held its meeting as below:

Sl. No. Meeting No. Held on

1 15th Meeting 30.03.2012

The following Terms of Reference are prescribed to Audit Committee to play an effective

role as mentioned in the Companies Act:

Discussions with the Auditors periodically about Internal Control System and the scope 1.

of audit including observations of the auditors.

Review of the half-yearly and Annual Financial statements before submission to the 2.

Board.

Ensure compliance of Internal Control Systems. 3.

Financial and Risk Management Policies and Fraud and Fraudulent Risks4.

Any other matters as may be referred to by the Board.5.

Audit Committee considers and recommends the fi nancial results to the Board.

Statutory Auditors are invited to attend the meeting. The committee also invites the Director

(Finance), Financial Adviser (Accounts & Resources) and Financial Adviser (Internal Audit) to

be present at the meeting.


SPORTS:

KPTCL Sports Organisation has conducted Inter Company Sports activities for the

year 2011-12 by conducting the events at 3 (Three) Centers namely at Gulbarga, Surathkal

(Mangalore) and Haveri.

Our Teams participated in the AIESCB Tournaments in the following events:

Bodybuilding, Powerlifting, Athletics, Kabaddi, Basketball, Hockey, Cricket, Football,

Volleyball, Carrom, and Women Sports.

KPTCL SPORTS ORGANISATION has secured 2nd Place in over all championship

for the fi rst time in the All India Electricity Sports Control Board Tournaments and has made

our organization proud.

KPTCL Athletes have secured 5 Gold, 5 Silver and 5 Bronze medals and have

secured 2nd place in the over all championship in the AIESCB athletics meet held at Mumbai

during the month of May 2011.

BODYBUILDING: INTERNATIONAL LEVEL

Sri Roshan Ferrao, MESCOM represented India in the

Mr. Universe Bodybuilding Championships-2011 held at Hamburg

(Germany) during the month of Nov. 2011 and secured 7th place.

NATIONAL LEVEL:

Sri Roshan Ferrao, MESCOM secured 1st Place (8TH TIME IN

SUCCESSION) in the AIESCB Bodybuilding Championships held at

Jabalpur and got “VIDHYUTH SHREE” Title.

Sri R. Nagaraj, KPTCL secured Ist Place in Super tall Category in the

AIESCB Bodybuilding Championships held at Jabalpur.

STATE LEVEL:

Sri Ananth Kumar, BESCOM has secured 1st Place in the State

Level Body Building Championship held at Bangalore.

Sri R. Nagraj, KPTCL secured 2nd Place in the 59th Karnataka State

Amateur Body Building Championship held at Bangalore during the

month of Feb 2012.

POWERLIFTING: Sri Kishore, MESCOM has secured 3rd Place in National Dead

Lift Power Lifting Championship held at Kangra (Himachal Pradesh)

during the month of April 2011.


KABADDI : KPTCL Kabaddi Team secured 1st Place for the fourth time in

succession in the 37th All India Electricity Sports Control Board

Championship held at Darmashala (Himachal Pradesh) during the

month of Sept. 2011.

KPTCL Kabaddi Team has secured 1st Place in the All India Invitational

Kabaddi Championship held at Mangalore during the month of May

2011.

ATHLETICS : KPTCL Athletes have secured 5 Gold, 5 Silver and 5 Bronze medals

and have secured 2nd place in the over all championship in the AIESCB

athletics meet held at Mumbai during the month of May 2011.

VOLLEY BALL KPTCL Team has secured Fourth Place for the fi rst time in All India

Electricity Sports Control Board Volleyball Championships held at

Kurukshetra during the month of April 2011.

HOCKEY : KPTCL Team has reached Quarter Final in All India Electricity Sports

Control Board Hockey Championship held at Patiala during the month

of April 2011.

CRICKET : KPTCL Cricket team participated and performed very well and have

Qualifi ed to play the Group –II I-Division League tournaments of

Karnataka State Cricket Association held at Bangalore during the

month of June 2011.

KPTCL Cricket team have secured 1st Place in the KPC Foundation

Day Cricket Tournament organized by KPCL at Bangalore.

BALL

BADMINTON

Sri D.Mallesh, CESC has participated in the Ball Badminton National

Championship held at Chennai by representing Karnataka State Ball

Badminton Association during the month of April 2011.

BASKETBALL : KPTCL Team has participated in All India Electricity Sports Control

Board Basket Ball Championship held at Patiala during the month of

April 2011.

BILLIARDS &

SNOOKER :

National Level :

Sri D Rajkumar, KPTCL has represented Karnataka State in

Billiards and Snooker National championship held at Chennai

during the month of June 2011 and at Pune during the month

of Jan 2012.

State Level :

Sri D Rajkumar, KPTCL has been ranked State No 1 in 9 Ball Pool

State Ranking Tournament held at Bangalore.

CARROM KPTCL Team has participated in the 37th All India Electricity Sports

Control Board Carrom Championship held at New Delhi during the

month of Aug. 2011.


FOOTBALL KPTCL Team has participated in the 37th All India Electricity Sports

Control Board Football Championship held at Chandigarh during the

month of Dec 2011.WOMEN

SPORTS

KPTCL Women Team has secured 1st Place in Shuttle

Badminton Team Championship, Ist Place in Table Tennis team

Championship, 2nd Place in Tenni-Koit Team Championship, 2nd

Place in Chess Team Championships and 2nd Place in Over All

Team Championship in All India Electricity Sports Control Board

Women Sports Tournament held at Nellur (A.P.) during the month of

Dec. 2011.YOGA : Yoga coaching classes was organized at Kaveri Bhavan. Many

employees and offi cers attended and have benefi ted out of it.

KPTCL Sports Organization is motivating young sports persons to participate in

various sports activities through which the quality and competition in sports has improved.

The Management of KPTCL and all zonal sports committees are encouraging promotion of

Sports in the organization coming under their respective Zone. All the sports persons are

taking lot of interest in participating in the International, National and State level tournaments

and many have brought laurels to our organisation.

CHALLENGES FACED BY THE UTILITY:

Drawing of Power from the distant Generating Stations and maintenance of •

Transmission system to achieve reliability factor of 99.85%

Grid management at High Voltage & High frequency with increase in Wind •

& Hydro Power and drastic reduction in Demand to an extent of 40% during

Monsoon period

Load management during Summer due to infi rm Wind Power & sudden outages •

of Thermal Units

RoW – Right of way problems while execution of Transmission lines, stiff •

resistance from farmers/ land owners, resolving disputes pending at various

courts.

Delay in getting Statutory clearances from Forest, Railway departments, delay •

in acquisition of Private/Government land due to cumbersome procedure.

Time and cost over run of projects due to delay in completion of projects caused •

by RoW and other problems as stated above.

Stations could not be commissioned for non completing of incoming lines due •

to RoW and other problems

220kV Jigani Sub-Station- RoW for line works•

220kv Kotipura Sub-Station- RoW for line works•

220kV VT Park Sub-Station- RoW for line work•

110kV Kammaradi Sub-Station– Forest clearance for lines•

110kV Konandur Sub-Station- Forest clearance for lines•


Link lines could not be commissioned due to RoW and other problems•

400kV DC line between UPCL-Shantigrama- Forest clearance & RoW•

220kV DC line between Malur- Somanahalli- Forest clearance & RoW•

220kv DC line between Hiriyur- Gowribidnur- RoW problems•

220kV DC line between Tallak-Hiriyur- RoW problems•

220kV DC line between Bidadi- 400kV Bidadi Station- RoW•

110kV DC line Shimoga- Sagar – RoW problems•

STATUTORY AUDITORS

C & AG of India have appointed M/s. Rao & Swamy, Bangalore as Statutory Auditors

for auditing the Accounts of KPTCL for the Financial Year 2011-2012.

COST AUDITORS

Ministry of Corporate Affairs, Govt. of India have approved appointment of M/s KPR

& Associates as Cost Auditors for auditing the cost accounts of KPTCL for the Financial Year

2011-2012.

PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A)

The information under section 217(2A) of Companies Act, 1956 read with Company

(Particulars of Employees) Rules, 197 may be taken as ‘NIL’.

DIRECTORS’ RESPONSIBILITY STATEMENT

Pursuant to the requirement under section 217(2A) of the Companies Act, 1956 with

respect of Directors’ Responsibility Statement, it is hereby confi rmed that:

In the preparation of the annual accounts, the applicable accounting standards 1.

have been followed along with proper explanation relating to material

departures;

Accounting policies have been selected and applied consistently and judgments 2.

and estimates are made that are reasonable and prudent so as to give a true

and fair view of the state of affairs of the company at the end of the fi nancial year

and of the profi t or loss of the company for that period;

Proper and suffi cient care has been taken for the maintenance of adequate 3.

accounting records in accordance with the provisions of the Act for safeguarding

the assets of the company and for preventing and detecting frauds and other

irregularities; and

Annual accounts have been prepared on a going concern basis.4.


ACKNOWLEDGEMENTS

The Board of Directors would like to place on record its appreciation for all the support

and guidance extended by the Government of Karnataka, Government of India, Karnataka

Electricity Regulatory Commission, Central Electricity Authority, Central Electricity Regulatory

Commission, Power Finance Corporation Ltd., Rural Electrifi cation Corporation, Karnataka

Renewable Energy Development Ltd., Commercial Banks & other Financial Institutions,

Ministry of Corporate Affairs, Registrar of Companies and the General Public for their Co-

operation and active support to KPTCL.

The Board of Directors would also like to place on record its appreciation for the untiring

efforts and contributions made by the employees at all levels to ensure that the company

continues to grow and excel.

For & on behalf of the Board

Sd/-

CHAIRPERSON


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL

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

ON THE ACCOUNTS OF KARNATAKA POWER TRANSMISSION

CORPORATION LIMITED, BANGALORE, FOR THE YEAR ENDED

31st MARCH 2012.

The preparation of fi nancial statement of Karnataka Power Transmission Corporation

Limited, Bangalore, for the year ended 31st March 2012 in accordance with the fi nancial

reporting framework prescribed under Companies Act, 1956 is the responsibility of the

management of the Company. The statutory auditors appointed by the Comptroller and

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

for expressing opinion on these fi nancial 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 17th September 2012.

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

audit, under section 619(3)(b) of the Companies Act, 1956, of the fi nancial statements of

“Karnataka Power Transmission Corporation Limited, Bangalore” for the year ended

31st March 2012. This supplementary audit has been carried out independently without

access to the working papers of the statutory auditors and is limited primarily to inquiries of

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

accounting records. On the basis of my audit nothing signifi cant has come to my knowledge

which would give rise to any comment upon or supplement to Statutory Auditors’ report under

section 619(4) of the Companies Act, 1956.

For and on behalf of the

Comptroller & Auditor General of India

Sd/-

(D.J. BHADRA)

PR. ACCOUNTANT GENERAL

(ECONOMIC & REVENUE SECTOR AUDIT)

KARNATAKA, BANGALORE

BANGALORE

Dated: 28 September 2012


Rao & Swami

Chartered Accountants

No. 2/1, Connaught Road

Bangalore – 560 001

Fax : 91(080) - 22260230

AUDITORS’ REPORT

TO THE MEMBERS OF KARNATAKA POWER TRANSMISSION

CORPORATION LIMITED

We have audited the attached Balance Sheet of Karnataka Power Transmission

Corporation Limited (“the Corporation”), as at 31st March 2012, the Statement of Profi t and

Loss and also the Cash Flow Statement for the year ended on that date, annexed thereto.

These fi nancial statements are the responsibility of the Corporation’s Management. Our

responsibility is to express an opinion on these fi nancial statements based on our audit.

The Corporation is governed by the provisions of The Electricity Act, 2003 read

with the related rules and regulations. The application of the said Act is in consonance with

the provisions of Section 616(c) of The Companies Act, 1956 (“the Act”). Accordingly, the

Corporation has compiled the accounts, adopting the principles and policies as enunciated in

the Electricity Supply Annual Accounts Rules, 1985 (“ESAAR”).

We have conducted our audit in accordance with Auditing Standards generally 1.

accepted in India. Those Standards require that we plan and perform the audit

to obtain reasonable assurance about whether the fi nancial statements are free

of material misstatement. An audit includes examining, on a test basis, evidence

supporting the amounts and disclosures in the fi nancial statements. An audit

also includes assessing the accounting principles used and signifi cant estimates

made by the Management, as well as evaluating the overall fi nancial statements

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

opinion.

Our Notes on Accounts are detailed in Annexure-12.

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

Central Government of India in terms of section 227(4A) of the Companies

Act, 1956, we enclose in Annexure-II a statement on the matters specifi ed in

paragraphs 4 and 5 of the said Order.

4. Further to our comments in Annexure-II referred to in paragraph 3 and subject to

our comments in Annexure-I referred to in paragraph 2 above, we report that:

We have obtained all the information and explanations, which to the best of (i)

our knowledge and belief were necessary for the purpose of our audit;


In our opinion, proper books of account as required by law have been (ii)

kept by the Corporation so far as appears from our examination of those

books;

The Balance Sheet the Statement of Profi t & Loss and the Cash Flow (iii)

Statement dealt with by this report are in agreement with the books of

account;

In our opinion, the Balance Sheet, the Statement of Profi t & Loss and the (iv)

Cash Flow Statement dealt with by this report comply with the accounting

standards referred to in sub-section (3C) of section 211 of the Companies

Act, 1956, to the extent they are not inconsistent with the provisions of

ESAAR,1985 adopted by the Corporation, except as stated in Note 1 in

Annexure-I to this report.

Without qualifying our report we draw your attention to the following Notes (v)

on Accounts:

Note 6.3 regarding difference in transmission charges billed and (a)

accounted in earlier year and approved by KERC in its order dated

31.12.07, which matter has been taken before Hon’ble Supreme Court

by KERC.

Note 12.3 regarding Rs. 112.50 lakh demanded by lessor (including Rs. (b)

59.60 lakh relating to assets held by ESCOMS) for transfer of title over

the assets earlier obtained on lease, not provided for in the accounts,

as negotiation to terminate the lease agreement and repossession of

assets are stated to be in progress.

Note 13.1 that Capital Work in Progress includes a balance of (c)

Rs. 2276. lakh under reconciliation, pending identifi cation with correct

work order.

Note 14.1 regarding amount of Rs. 454.06 lakh withheld by Incometax (d)

department (out of refunds due) against disputed TDS claims stated in

Note 36.1 (i) on Accounts.

Note 36.6 (a) that balance confi rmations have been obtained only in (e)

respect of borrowings from Banks and fi nancial Institutions and for bank

balances.

In our opinion and to the best of our information and according to the (vi)

explanations given to us, subject to the effect on the fi nancial statements of


the matters referred to in Annexure-I to this report, to the extent ascertainable,

as detailed in Note 5 therein (viz disclosed profi t before tax of Rs. 870.59

lakh would have resulted in loss of Rs.19910.75 lakh), the said accounts

read together with accounting policies and notes forming part thereof, give

the information required by the Companies Act, 1956 , in the manner so

required and give a true and fair view in conformity with the accounting

principles generally accepted in India:

in the case of the Balance Sheet, of the state of affairs of the Corporation (i)

as at March 31st 2012.

in the case of the Statement of Profi t and Loss, of the profi t for the year (ii)

ended on that date;

in the case of the Cash Flow Statement, of the cash fl ows for the year (iii)

ended on that date;

5. The Corporation being a Government Company, the provision of Section 274(1)

(g) of the Companies Act ,1956 regarding disqualifi cation of Directors do not

apply in terms of Notifi cation No.GSR 829(E) dt.21.10.2003.

Place: Bangalore

Date: 17th September 2012

For RAO & SWAMI

CHARTERED ACCOUNTANTS

FRN : 003105S

Sd/-

(N. RAMESH)

PARTNER

Membership No. 016153


ANNEXURE-I TO THE AUDITORS’ REPORT

OUR NOTES ON ACCOUNTS

(Referred to in Paragraph 2 of our report of even date to the members of Karnataka Power

Transmission Corporation Limited. on the fi nancial statements for the year ended 31st March,

2012)

Non compliance of the Balance Sheet, Statement of Profi t & Loss and the Cash 1.

Flow Statement dealt with by this report with the provisions of ESAAR, 1985

and / or Accounting Standards referred to in subsection 3C of Section 211 of the

Companies Act, 1956 (to the extent they are not inconsistent with the provisions

of ESAAR 1985), observed by us are listed hereunder.

1.1 a) Valuation of items of material stock of Rs. 82.60 lakh identifi ed as obsolete

(referred to in Note 16.1on Accounts) and in respect of certain inventories not

held for consumption like scrap and nonmoving / surplus items, (including items

of Rs. 1864.52 lakh identifi ed as nonmoving stores for more than 3 years as

on 31.3.2012) made at standard rate or cost instead of lower of cost or net

realizable value as per Accounting Standard (AS) 2 on “Valuation of Inventories”

and paragraphs 1.32 and 4.5 of ESAAR 1985, the effect of which is not

ascertainable in the absence of details.

b) Loss on shortage in material stock has not been provided for in the period in

which the shortage was observed, as required by para 2.20 (12) in Annexure-V

to ESAAR 1985, but taken under Stores and Spares (Note 18 on Accounts) as

‘Stock shortage pending investigation’. Hence Stores and Spares and profi t for

the year is over stated by Rs.0.87 lakhs.

1.2 Nondisclosure of Pension & Gratuity contribution relating to pay arrears which

had been provided as on 31.3.2011 without considering such contribution, is

not in conformity with Accounting Standard (AS) 5 on Net Profi t for the Period,

Prior Period Items and Changes in Accounting Policies – amount not quantifi ed/

ascertained.

1.3 Charging depreciation on assets constructed on leasehold land at normal rate,

as stated in Accounting Policy – Note 35.4 (g) on Accounts which is also not in

conformity with Accounting Standard (AS) 6 on “Depreciation Accounting” and

paragraph 2.42 of Annexure-III of ESAAR, 1985.The effect of the above is not

ascertainable in the absence of necessary details.

1.4 Recognition of incentive of Rs. 932 lakh (included in Miscellaneous Recoveries

shown in Note 21 on Accounts) relating to earlier fi nancial year 2010-11


recoverable from ESCOMS as per Tariff Order 2012 notifi ed by KERC on

30.4.2012, as income for the current fi nancial year, which is not in conformity

with Accounting Standard (AS) – 9 on “Revenue Recognition” or Accounting

Standard (AS) – 4 “ Contingencies and Events Occurring After the Balance

Sheet Date”. Accordingly Revenue from Operations and Other Current Assets

are overstated by Rs.932 lakhs.

1.5 (a)(i) Non recognition of company’s contribution as expense (except to the

extent of death benefi t) and also not providing for liability towards company’s

contribution based on actuarial valuation in respect of Long term liability relating

to Family Benefi t Fund. [The amount of Rs. 4294.10 disclosed under Note 6

on Accounts, represents amount collected from employees net of disbursement

made (including Company’s contribution) on retirement/death as stated in Note

6.1 on Accounts]. This is not in conformity with Accounting Standard (AS) 15 on

“Employee Benefi ts”, the effect of which could not be ascertained.

(ii) The company has also not deposited the amount collected from employees

in separate bank account in terms of provisions of Sec 417 of Companies Act

1956.

(b)(i) Provision for long term employee benefi t like leave encashment

and pension & gratuity being made on adhoc basis as stated in Note 24.2 and

Note 11.2 on Accounts respectively, without ascertaining (incremental) liability

based on actuarial valuation as on 31.3.12 using Projected Unit Credit Method,

which is not in conformity with Accounting Standard (AS) 15 on “Employee

Benefi ts”, the effect of which could not be ascertained except as stated in

(ii) hereunder.

(ii) As per the Actuarial Report as on 31.3.2011 obtained by the Company,

in respect of Pension Scheme and Gratuity Scheme unprovided liability works

out to Rs. 19,265.81 lakh as under.

Rs. Lakhs

- Liability to be recognized

as per Report – Pension 22,470.88

- Gratuity 3,822.51

26,239.39

Less: Liability recognized

In Balance Sheet as on 31.3.2011 7,027.58

19,265.81


Accordingly, as on 31.3.2011 the provision towards pension and gratuity liability

was understated and the Surplus was overstated by Rs. 19,265.61 lakh. This

shortfall ought to have been provided pending receipt of the actuarial valuation

report as on 31-03-2012.

(iii) Consequential effect of non-reconciliation of balance due to/from

Pension Trust and Gratuity Trust as stated in Note 10.4 and Note 11.3 on

Accounts is also not ascertainable.

(c) Additional disclosure required to be made in terms of the said Accounting

Standard AS-15 has also not been made.

1.6 Non ascertainment and non provision for anticipated loss arising from the

obsolescence of capital assets in service and of capital spares as also stores

in stock and assets under construction in terms of para 1.32 and para 4.5

in Annexure-V to ESAAR 1985. Non ascertainment and non provision for

impairment loss in the manner required in terms of Accounting Standard -28

and Accounting Policy No 35.13.

Attention is drawn to following Notes on Accounts consequential effect of which 2.

could not be ascertained.

2.1 Note 5.1 regarding Deferred Tax Liability provided in earlier years considered as

suffi cient, the correctness of which could not be ascertained in the absence of

necessary details of working of the position as on 31-03-2012..

2.2 Note 10.2 regarding there being no dues to MSMEs under MSME Development

Act, 2006 as per information available with the Company and accordingly

no disclosure as required under the said Act has been made. However your

attention is drawn to para 2.4 (ii) herein below in respect of interest awarded to

three MSMEs by the Rajasthan Industry Facilitation Council under dispute.

2.3 Note 15.3 regarding un reconciled net credit balances of Rs.2551.12 lakh (Debit

Rs.101,82,659 lakh and credit Rs.101,85,210 lakh) under Inter Unit Accounts,

which include several old transactions. The net credit balance of Rs.2551.12

lakh has been grouped under Other Noncurrent Assets.

2.4 Note 36.1 regarding Contingent liabilities and Commitments to the extent not

provided for- Claims against the company not acknowledged as debt – others

Rs.1838 lakh, which includes.

Rs.853 lakh relating to amount awarded by West Bengal Industries Facilitation i.

Council, Kolkata on 31.01.2002, representing Rs.172 lakh on account of


outstanding amount for goods supplied by small scale industries (through

NSIC) and Rs.681 lakh interest on delayed payment under Small Scale and

Auxiliary Industrial Undertaking Act, 1993. The Corporation’s writ petition

has been dismissed by the Honourable High Court of Karnataka during the

year and we are informed that matter has since been taken up before the

Hon’ble Supreme Court. Pending decision of Hon’ble Supreme Court and

as the relevant records are not readily available, liability if any could not be

ascertained.

Rs.121.88 lakh pertaining to award of interest to three suppliers under ii.

the MSME Development Act, 2006 by the Rajasthan Industry Facilitation

Council in respect of which the Corporation has fi led an arbitration suit at

Bangalore and matter is pending.

2.5 Note 36.6 (b) regarding receivables from and Payable to ESCOMs referred

(aggregating to Rs. 6579.34 lakh and Rs.6956.07 lakh respectively) being

subject to reconciliation and confi rmation. The balances now being refl ected in

the accounts are after adjusting certain receivables against payables which are

pending confi rmation (including Rs. 6,651.79 lakh relating to differential cost of

power debited to ESCOMs as on 31.3.2011 commented upon by us in Para 1.4

(ii) in Annexure to our Auditor’s Report dated 5.9.2011.

Attention is also drawn to para 3.2(b) and para 3.7 (b) herein below also

Note 36.8 regarding non provision of unpaid property tax and land cess (amount 1.6

not ascertainable)

3. Our other observations / comments on the accounts are as under

3.1 Equity infusion of Rs. 88500 lakh made during 2008-09 to 2010-11 by

Government of Karnataka (shown as Equity Infusion-Shares pending allotment

in Notes on Accounts) and the utilization thereof is subject to certain terms viz.

the Corporation is required amongst others to prepare the design and monitoring

framework for each project with investments above Rs.5 crore (of respective

fi nancial years during which funds were released) as per Government guidelines

dated 01.08.2008. Further in respect of funds of Rs.200 crores released on

31.03.2011 the Corporation to take Cabinet approval for the works to be taken

up by leveraging the equity infusion as per monitoring / measurable parameters

and as per pre determined time schedule. Though shares for Rs. 43,294 lakh

have been issued during the year, the Corporation is yet to comply with terms


of capital infusion and the funds already utilized (amount not ascertainable) is

subject to ratifi cation by Government of Karnataka).

3.2 We are unable to ascertain either the correctness of liability or the additional

liability the Corporation may have to bear in respect of following amounts:

(a) Liability for expenses Rs. 713.39 lakh shown in Note 06 on accounts which

pertains to share of revenue expenditure payable to TBHES and outstanding for

over three years.

(b) Sundry liabilities Rs. 3669.55 lakh shown in Note 06 on Accounts, stated to

be amount released in earlier years by Energy Dept payable to ESCOMs (which

is also not included in amount disclosed in Note 36.6 (b) on Accounts).

(c) Sundry Creditors for purchase of power Rs. 168806 lakh (shown in Note 09

on Accounts) stated to be balance amount payable relating to purchase made up

to 09.06.2005 (substantial portion of it outstanding for over three years) together

with interest of Rs.10,821 lakh per annum provided only in respect of principal

amount due to KPCL.

3.3 (a) Adjustment pending renotifi cation by GOK Rs.4328.77 lakh shown in

Note 06 on Accounts represents adjustments made after fi nal notifi cation dt.

07.10.2004 (of Opening Balance Sheet of the Corporation as at 01.06.2002)

pertaining to period prior to 01.06.2002 and having effect on the networth of

the Corporation as at .01.06.2002. The Corporation has on 16.03.2012 sought

approval of Energy Department for transfer of Rs.4323.95 lakh as at 31.03.2011

to Share Capital Account, in terms of authorization accorded vide GO dated

07.10.2004. The Corporation is yet to seek such approval for Rs.4.82 lakh (net)

credited to the account during the year.

(b) Further, the amount now disclosed in the accounts is also subject to

i) effect of auditor’s qualifi cation on the accounts for 2009-10 and earlier

years as also qualifi cation Para 3.6 in Annexure 1 to our Auditor’s Report on

accounts for 2010-11.

ii) effect of reconciliation of balances with ESCOMs as stated in Para 2.5 herein

above.

3.4 Others Payable - Sundry liabilities Rs. 12815.69 lakh shown in Note 10 on

Accounts include

a) Rs. 11524.78 lakh being reversal of cheque issued but not presented relating

to bank accounts with adverse credit balance as per books.


b) Rs. 118.19 lakh being amount recovered from employees in earlier years,

pending payment to Employees Welfare Trust, which as informed to us, is yet

to be formed. Nondepositing of the accounts also contravenes Section 417 of

Companies Act 1956.

3.5 Fixed assets (Note 12 on Accounts) and Capital work in Progress (Note 13

on Accounts) includes value of materials relating to works pending dismantling

and/or short closed, which are yet to be removed and /or transferred to stores.

In the absence of necessary details of amounts relating to such works,

consequential effect could not be ascertained.

3.6 Advance Recoverable from Employees Rs. 329.37 lakh shown in Note 15 on

Accounts and Rs. 118.77 lakh shown in Note 20 on Accounts includes Rs. 248.32

lakh relating to shortage etc proposed to be recovered from future salaries/

terminal benefi ts. In the absence of necessary details, amount required to be

provided towards irrecoverable balance could not be ascertained.

3.7 Trade Receivables Rs. 202,99.05 lakh (Note 17 on Accounts)

(a) Includes:

(i) Sundry Debtors for Sale of Power- Interstate: Rs. 26.38 lakh, claim in respect

of which has since been revised downward to Rs. 5.83 lakh.

(ii) Wheeling charges receivable (net of payable) Rs. 1011.68 lakh of which Rs.

562.11 is outstanding for over three years and not realised till date.

The above dues are in our opinion doubtful of recovery and had the provision

been made profi t for the year would have been lower by Rs. 582.66 lakh.

(b) Sundry debtors – transmission charges of Rs. 19,260.99 lakh due from

ESCOMs are subject to reconciliation consequential effect of which is not

ascertainable.

3.8 (a) The Corporation has been providing for bonus to eligible employees

for the year only to the extent of minimum bonus, without ascertaining allocable

surplus and set on available., as per Payment of Bonus Act. Consequently

additional liability under the said Act could not be ascertained. Attention is also

drawn to Note 10.3 on Accounts- Ex-gratia paid is subject to post facto approval/

ratifi cation of the Government of Karnataka.


(b) No provision in the account has been made for employees contribution

towards provident fund relating to the period August 1999 to March 2006

amounting to Rs. 97.23 lakh. The contribution Rs. 89.60 lakh recovered by PF

authorities has been included in Deposits with Others in Note 14 on Accounts.

We are informed that management is pursuing for recovery and some recovery

having been effected after the Balance Sheet date, the amount which will be

ultimately borne by the company cannot be ascertained at this stage.

3.9 Other Operating Income – Miscellaneous Recoveries Rs. 13,592.24 lakh shown

in Note 21 include penalty / liquidated damages relating to Capital Works

(amount not readily ascertainable). In light of the Corporation capitalizing extra

cost (including interest) on account of re-tendering , such penalty/ liquidated

damages, in our opinion, are not in the nature of “income” referred to in ESAAR,

1985 (para2.15 of Annexure III) but are in the nature of receipts in mitigation of

extra cost incurred on account of delay and hence to be adjusted against cost

of corresponding asset, as per the opinion of the Expert Advisory Committee of

ICAI and para 2.16 of Annexure-III of ESAAR,1985. In the absence of necessary

details, consequential effect on the accounts could not be ascertained.

3.10 Expenses shared by ESCOMS deducted from Repairs and Maintenance (Note

25) Rs. 217.35 lakh, Employee Cost (Note 24) Rs. 1177.89 lakh and Administration

and General expenses (Note 26) Rs. 373.15 lakh includes Rs. 1518.79 lakh

claimed from ESCOMs as SLDC charges which is subject to deduction from

Annual Revenue Requirement (ARR) in the fi ling with and approval of KERC.

3.11 Finance Cost (Note 27) is net of interest of Rs. 199.05 Lakh recovered from a

contractor in respect of advance referred to in para 4 (a) below.

3.12 Contingent Liabilities and Commitments not provided for (Note 36.1 on Accounts)

does not include claims made in terms of CERC orders and which are required

to be collected from ESCOMs and remitted by the Corporation as per the

Regulation but outstanding as on 31.3.2012 – amount not ascertained.

3.13 Attention is drawn to Note 36.11 c that previous years fi gures are not strictly

comparable.


4. In our opinion the following actions require the approval of the Board:

Advance of Rs. 3717.05 lakh made to a contractor included under Advance (a)

to Suppliers and Contractors Rs. 5636.39 lakh shown in Note 14 on

Accounts (paid out of term loan taken by the Corporation) and proposed to

be recovered from retention amount,.

Extension of time limit for completion of project permitted during the year (b)

resulting in refund of Rs.7915..9 lakh penalty/liquidated damages;

Refunds/Withdrawal of Miscellaneous income Rs. 7724.09 lakh shown as (c)

deduction in Note 21 includes Rs. 6961.14 lakh being reduction in power

charges earlier treated as income receivable form ESCOMS and reversed

during the year,

Withdrawal of Rs. 262.95 lakh claim for delayed payment charges made in (d)

earlier year from Hukkeri Electricity Coop Society, written off and included

in Miscellaneous losses and Write off Rs.868.08 lakh shown in Note 29 on

Accounts

The consequential effect of the above comments to the extent ascertainable is 5.

as under

(Rs. in lakhs)

Profi t before tax for the year overstated by 20781.34

Inventories overstated by . 87

Trade Receivables overstated by 582.66

Other Current Assets overstated by 932.00

Long Term Provision under stated by 19265.81

For Rao & Swami


FRN : 003105 S

N. Ramesh

Partner

Place: Bangalore M No.16153



ANNEXURE-II TO THE AUDITORS’ REPORT

(Referred to in Paragraph 3 of our report of even date to the members of Karnataka Power

Transmission Corporation Limited. on the fi nancial statements for the year ended 31st March,

2012)

(a) The Corporation has been maintaining records showing particulars including 1.

quantitative details of fi xed assets, except for land, assets transferred from

division to division. Details of the situation of Fixed assets has not been

mentioned in all the cases.

(b) According to information and explanation given to us,

(i) the assets/installations put to use in electricity supply and transmission

functions are considered as physically available so long as the functions

are continued to be discharged and are not subject to periodical physical

verifi cation, as assets like lines run through forest area and are spread

over the State.

the Corporation has a system of physical verifi cation of tools and (ii)

furniture (T&P counting) every year.

However, the procedure of physical verifi cation where conducted and

details of discrepancies found on such verifi cation have not been

documented.

Also, asset records at divisions relating to land requires to be reconciled

with documents held at Corporate Offi ce.

Further, in our opinion, the Corporation should evolve suitable system

of periodic physical verifi cation covering all types of fi xed assets, capital

work in progress (including material procured under turn key contracts),

assets not in use and deferred cost.

(c) Company has not disposed off substantial part of fi xed assets during the year

so as to affect its going concern status.

(a) According to the information and explanation given to us, the Corporation has 2.

a system of physical verifi cation of inventories every year and at the time of

handing over of charge. Materials in transit have been taken as per records.

In our opinion, the frequency of verifi cation is reasonable considering the size

of the company and nature of its business.

(b) In our opinion, the procedure of physical verifi cation of inventory needs to

be properly documented, in the absence of which we are unable to express


our opinion on its reasonableness and adequacy in relation to the size of the

Corporation and its nature of business.

(c) According to the information and explanations furnished to us, the Corporation

has a system of maintaining proper records of inventory and discrepancies

found or noticed on physical verifi cation have been properly dealt in the

accounts except excess of Rs. 11.07 lakh and shortage of Rs.0.87 lakh which

are under investigation as on 31st March 2012. However, in our opinion,

discrepancy found on physical verifi cation and adjustment thereof needs to

be properly documented and also maintenance of stores ledger / records

needs to be strengthened.

(d) According to the information and explanations given to us, the Corporation has

during the year not granted any loans, secured or unsecured to companies,

fi rms and other parties covered in the register maintained under section 301

of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(a),

(b) (c) and (d) of the Order are not applicable.

(e) According to the information and explanations given to us, the Corporation has

during the year not taken any loans, secured or unsecured from companies,

fi rms and other parties covered in the register maintained under section 301

of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(e), (f)

and (g) of the Order, are not applicable.

4. According to the information and explanations furnished to us, there are

prima facie adequate internal control procedures commensurate with the

size of the Corporation and nature of its business, for purchase of inventory

and fi xed assets and for service / transmission of power except in respect

of ‘Accounts Transfer (Interunit Accounts)’,accounting for takeover of assets

on short closure, asset categorization, accounting for completed works and

review of balances for adjustment / recovery, which in our opinion needs to

be strengthened.

Further, in our opinion, suitable fi nancial limits should be fi xed for withdrawal

of revenue and/or for write off.

5. According to information and explanation given to us, there are no transactions

made in pursuance of contracts or arrangements that need to be entered in

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

6. The Corporation has not accepted any deposits from the public. Therefore

provisions of clause 4 (vi) of the Order are not applicable.


7. The Corporation has an internal audit division. In our opinion the system

requires to be strengthened with regard to manpower (including professionally

qualifi ed personnel), scope and extent of coverage of transactions (including

compliance of Accounting Standards, categorization of assets, review of old

balances and presence during physical verifi cation) and reporting and follow

up, in order to be commensurate with the size of the Corporation and nature

of its business.

8. The maintenance of cost records in respect of electricity / transmission of

power has been prescribed by the Government under clause (d) of subsection

(1) of Section 209 of the Companies Act, 1956. However we are informed that

the Corporation does not keep separate set of registers and books for cost

records and cost statements are prepared based on the fi nancial accounting

books and records.

9. (a) Based on our examination of books of account and according to the information

and explanations given to us, in our opinion, during the year the Corporation

is regular in depositing undisputed statutory dues with the appropriate

authorities and there were no arrears of such dues at the year end which have

remained outstanding for a period of more than six months from the date they

became payable except provident fund contribution relating to earlier year of

Rs. 7.63 lakh referred to in para 3.8 8(b) in Annexure I. However as informed

to us, property tax is paid and accounted as and when demand is raised

from the Revenue authorities and there are no dues required to be provided/

paid for. Also, provisions of service tax are not applicable to the Corporation.

Further applicability of wealth tax on motor cars and urban land has not been

ascertained and paid.

(b) According to the information and explanations furnished, there are no due of

income tax, sales tax, wealth tax, service tax, customs duty and excise duty

which have not been deposited on account of any dispute.

10. The Corporation has no accumulated losses as at March 31, 2012 and subject

to effect of qualifi cation in the audit reports, has not incurred cash loss in the

fi nancial year ended on that date or in the immediately preceding previous

year.

11. Based on our examination of books of account and according to the information

and explanations given to us, the Corporation has not defaulted in repayment

of dues to a fi nancial institution or Bank or Debenture holders.


12. According to the information and explanation given to us, the Corporation has

not granted any loans & advances on the basis of security by way of pledge

of shares, debentures and other securities. As such, provisions of clause

4(xii) of the Order are not applicable.

13. The Corporation is not a Chit fund Corporation, Nidhi Corporation or mutual

benefi t Society. Therefore the provisions of paragraph 4(xiii) of the Order are

not applicable to the Corporation.

14. The Corporation is not dealing or trading in shares, securities, debentures and

other investment and as such clause 4(xiv) of the Order is not applicable.

15. According to the information and explanation given to us the Corporation

has not given guarantees for loan taken by others from banks or fi nancial

institutions. However, attention is drawn to Note - on Accounts regarding

loans parked with GOK!

16. According to the information and explanations given to us, though the loan

funds and utilization thereof cannot be matched one to one as the funds

are pooled, on an overall basis, the term loans have been applied or in the

process of being applied for the purposes for which they were obtained.

17. According to the Cash fl ow statement and other records examined by us and

according to the information and explanation given to us, on an overall basis,

funds raised on short term basis have prima facie, not been used during

the year for long term investment other than temporary deployment pending

receipt of long term loans.

18. The Corporation has not made any preferential allotment of shares to parties

and companies covered in the register maintained under section 301 of the

Act.

19. The Corporation has not issued any debentures; accordingly the provisions

of clause 4(xix) of the Order are not applicable.

20. The Corporation has not raised money by public issue, as such provisions of

clause 4(xx) of the Order are not applicable.

21. According to the information and explanation given to us and to the best of

our knowledge and belief, no fraud on or by the Corporation has been noticed

or reported during the year under audit. In respect of departmental enquiry


initiated against a few employees relating to alleged serious irregularities, we

are informed that the same are not in the nature of fraud and / or its nature

can be determined only on completion of enquiry.

For Rao & Swami


FRN : 003105 S

N. Ramesh

Partner

Place: Bangalore M No.16153



ADDENDUM TO DIRECTORS’ REPORT FOR

THE YEAR ENDED 31ST MARCH 2012

FOLLOWING REMARKS ARE OFFERED ON THE OBSERVATION / COMMENTS OF THE

STATUTORY AUDITOR ON THE ACCOUNTS FOR 2011-12

Sl. No. Observation of Statutory Auditors Management Reply

1 Noncompliance of the Balance Sheet,

Statement of Profi t & Loss and the Cash

Flow Statement dealt with by this report

with the provisions of ESAAR, 1985

and/ or Accounting Standards referred

to in subsection 3C of Section 211 of the

Companies Act, 1956 (to the extent they

are not inconsistent with the provisions of

ESAAR 1985), observed by us are listed

hereunder

1.1 Valuation of items of material stock of a)

Rs. 82.60 lakh identifi ed as obsolete

(referred to in Note 16.1on Accounts)

and in respect of certain inventories

not held for consumption like scrap and

nonmoving / surplus items, (including

items of Rs. 1864.52 lakh identifi ed as

nonmoving stores for more than 3 years

as on 31.3.2012) made at standard

rate or cost instead of lower of cost or

net realizable value as per Accounting

Standard (AS) 2 on “Valuation of

Inventories” and paragraphs 1.32 and

4.5 of ESAAR 1985, the effect of which

is not ascertainable in the absence of

details.

The materials which are identifi ed as

obsolete are removed from Material

Stock Account and kept under a

separate Account ‘Obsolete material

stock’ till the disposal of obsolete

materials through Auction. Loss or gain

as the case may be will be accounted

after the auction of such materials.

Hitherto, no provision for obsolescence

was being made for materials under

‘Obsolete Material Stock’, However,

necessary action will be taken to make

provision for obsolescence if any, in

2012-13 Accounts and onwards.

With regard to non-moving stores for

more than 3 years, majority of the

materials procured by KPTCL are

made of Copper or Aluminium, existing

market rates of which are much higher

when compared to the rates at the time

of procurement. As such, accounting

of non-moving stores for more than

3 years at ‘Standard Rate’ is in order.



Loss on shortage in material stock has b)

not been provided for in the period in

which the shortage was observed, as

required by para 2.20 (12) in Annexure

V to ESAAR 1985, but taken under

Stores and Spares (Note 18 on

Accounts) as ‘Stock shortage pending

investigation’. Hence Stores and

Spares and profi t for the year is over

stated by Rs.0.87 lakhs.

As per the procedure followed by

KPTCL and as per the provisions of

Electricity Supply Annual Accounts

Rules, 1985 (ESSAR 1985), the stock

shortages found on physical verifi cation

are initially accounted under “Stock

Shortage Pending Investigation

Account”. On the outcome of the

departmental enquiry, the responsibility

is fi xed on the concerned and action

taken to recover the amount. If the

responsibility cannot be fi xed on any

one , the amount will be written off in

the books of Accounts. However, action

will be taken to make provision for

loss towards Stock shortage pending

investigation from 2012-13 Accounts

and onwards.

1.2 Nondisclosure of Pension & Gratuity

contribution relating to pay arrears which

had been provided as on 31.3.2011 without

considering such contribution, is not in

conformity with Accounting Standard (AS)

5 on Net Profi t for the Period, Prior Period

Items and Changes in Accounting Policies

– amount not quantifi ed/ascertained.

The Pay arrears were disbursed to

the employees during 2011-12 which

includes the arrears from April 2011 to

Sept 2011 and the same is accounted

under Pay,DP,DA and other allowance

of current Year. Pension and Gratuity

Contribution is calculated and provided

on the Actual amount paid towards Pay,

DP and DA of current year including pay

arrears, at the percentage intimated

by KPTCL Employees Pension

and Gratuity Trust vide Order

No. KEPGT/P7/2011-12 Bangalore

Dated 23.01.2012. The current year

expenditure towards Pay, DP and

DA includes arrears of Pay. As such,

provision towards Pension & Gratuity

contribution for the previous year

could not be distinguished separately.

However , there is no impact on the

Profi t & Loss Account for 2011-12 due

to such accounting.



1.3 Charging depreciation on assets

constructed on leasehold land at normal

rate, as stated in Accounting Policy – Note

35.4 (g) on Accounts which is also not

in conformity with Accounting Standard

(AS) 6 on “Depreciation Accounting”

and paragraph 2.42 of Annexure-III of

ESAAR, 1985.The effect of the above

is not ascertainable in the absence of

necessary details.

KPTCL is holding Land Under Lease

which is subject to renewal. As the

lease agreement will be renewed at

the end of the lease period, charging

depreciation at normal rates is in order.

However, Accounting Policy-Note

35.4(g) will be suitably modifi ed during

2012-13.

1.4 Recognition of incentive of Rs. 932 lakh

(included in Miscellaneous Recoveries

shown in Note 21 on Accounts) relating to

earlier fi nancial year 2010-11 recoverable

from ESCOMS as per Tariff Order 2012

notifi ed by KEBC on 30.4.2012, as income

for the current fi nancial year, which is not


(AS) – 9 on “Revenue Recognition”

or Accounting Standard (AS) – 4 “

Contingencies and Events Occurring After

the Balance Sheet Date”. Accordingly

Revenue from Operations and Other

Current Assets are overstated by Rs.932

lakhs.

KERC in its Tariff Order-2012 Dated

30.04.2012, directed KPTCL to

recover Rs. 932 Lakhs from ESCOMs

as incentive towards better system

availability pertaining to the Financial

Year 2010-11. As per paragraph 1.17

of Annexure-III to ESSAR 1985, the

said amount has been accounted as

incentive during 2011-12.



1.5 (a)(i) Non recognition of company’s

contribution as expense (except to the

extent of death benefi t) and also not

providing for liability towards company’s

contribution based on actuarial valuation

in respect of Long term liability relating

to Family Benefi t Fund. [The amount of

Rs. 4294.10 disclosed under Note 6 on

Accounts, represents amount collected

from employees net of disbursement

made (including Company’s contribution)

on retirement/death as stated in Note 6.1

on Accounts]. This is not in conformity

with Accounting Standard (AS) 15 on

“Employee Benefi ts”, the effect of which


This scheme has been evolved under

Employee welfare programme at the

request of Employee Union way back in

1978. The liability towards company’s

contribution will be provided based on

the actuarial valuation during 2012-13

and onwards.

(ii) The company has also not deposited

the amount collected from employees

in separate bank account in terms of

provisions of Sec 417 of Companies

Act 1956.

Action will be taken to open a separate

Bank Account during 2012-13.

(b)(i) Provision for long term employee

benefi t like leave encashment and

pension & gratuity being made on adhoc

basis as stated in Note 24.2 and Note

11.2 on Accounts respectively, without

ascertaining (incremental) liability based

on actuarial valuation as on 31.3.12 using

Projected Unit Credit Method, which is not


(AS) 15 on “Employee Benefi ts”, the effect

of which could not be ascertained except

as stated in (ii) hereunder.

It is the responsibility of P&G Trust to

get the Actuarial Valuation done based

on the information provided by KPTCL

/ ESCOMs. During the year 2010-

11, the P&G Trust has got done the

Actuarial valuation and intimated the

average rates of Pension and Gratuity

contribution payable by KPTCL &

ESCOMs with effect from 01/04/2011

vide letter No. KEPT/P7/2011-12/790-

791 DATED 13-01-2012. Accordingly,

KPTCL has provided for Pension

& Gratuity Contribution in 2011-12

Accounts.



ii) As per the Actuarial Report as on

31.3.2011 obtained by the Company, in

respect of Pension Scheme and Gratuity

Scheme unprovided liability works out to

Rs. 19,265.81 lakh as under

Rs.Lakhs

Liability to be recognized as

per Report –

Pension 22,470.88

Gratuity 3,822.51

26,239.39

Less: Liability recognized

In Balance Sheet as on 31.3.2011

7,027.58 19,265.81

Accordingly, as on 31.3.2011 the

provision towards pension and gratuity

liability was understated and the Surplus

was overstated by Rs. 19,265.61 lakh.

This shortfall ought to have been provided

pending receipt of the actuarial valuation

report as on 31-03-2012.

KPTCL has provided towards Pension

& Gratuity Contribution in accordance

with the intimation from P&G Trust in

the letter dated 13/01/2012 above said

letter. The average rates indicated in

the above letter have been arrived at,

by the Actuary considering unprovided

liability also. Audit has reckoned entire

unprovided liability as the liability

of KPTCL ignoring the Government

portion of Liability which is not correct.

(iii) Consequential effect of non-

reconciliation of balance due to/from

Pension Trust and Gratuity Trust as stated

in Note 10.4 and Note 11.3 on Accounts is

also not ascertainable.

Reconciliation will be carried out

during 2012-13.

(c) Additional disclosure required to be

made in terms of the said Accounting

Standard AS-15 has also not been made.

Actuarial valuation Report for 2011-12

is yet to be received.



1.6 Non ascertainment and non-provision

for anticipated loss arising from the

obsolescence of capital assets in service

and of capital spares as also stores in stock

and assets under construction in terms of

para 1.32 and para 4.5 in Annexure-V to

ESAAR 1985. Non ascertainment and

non-provision for impairment loss in the

manner required in terms of Accounting

Standard -28 and Accounting Policy No

35.13.

The Corporation has not noticed any

loss arising from the obsolescence

of Capital Assets in service, Capital

Spares and Assets under construction.

As such, no provision has been made

during 2011-12. Losses arising from

the obsolescence noticed if any, during

2012-13 will be provided accordingly.

2 3. Attention is drawn to following Notes on

Accounts consequential effect of which

could not be ascertained

2.1 Note 5.1 regarding Deferred Tax Liability

provided in earlier years considered

as suffi cient, the correctness of which

could not be ascertained in the absence

of necessary details of working of the

position as on 31-03-2012..

The Deferred Tax Liability has been

worked out and it is found that, Deferred

Tax Liability provided in earlier years is

considered as suffi cient.

2.2 Note 10.2 regarding there being no dues

to MSMEs under MSME Development Act,

2006 as per information available with the

Company and accordingly no disclosure

as required under the said Act has been

made. However your attention is drawn

to para 2.4 (ii) herein below in respect of

interest awarded to three MSMEs by the

Rajasthan Industry Facilitation Council

under dispute.

As per the information furnished by

the Units, there are no dues to MSME

under MSME Development Act, 2006

during 2011-12/as at 31/03/2012.

2.3 Note 15.3 regarding un reconciled net

credit balances of Rs.2551.12 lakh

(Debit Rs.101,82,659 lakh and credit

Rs.101,852,10 lakh) under Inter Unit

Accounts, which include several old

transactions. The net credit balance of

Rs.2551.12 lakh has been grouped under

Other Noncurrent Assets.

Factual. Efforts will be made to

reconcile the balance under IUA during

the year 2012-13.



2.4 Note 36.1 regarding Contingent liabilities

and Commitments to the extent not

provided for- Claims against the company

not acknowledged as debt – others

Rs.1838 lakh, which includes

i. Rs.853 lakh relating to amount awarded

by West Bengal Industries Facilitation

Council, Kolkata on 31.01.2002,

representing Rs.172 lakh on account of

outstanding amount for goods supplied

by small scale industries (through NSIC)

and Rs.681 lakh interest on delayed

payment under Small Scale and Auxiliary

Industrial Undertaking Act, 1993. The

Corporation’s writ petition has been

dismissed by the Honourable High Court

of Karnataka during the year and we are

informed that matter has since been taken

up before the Hon’ble Supreme Court.

Pending decision of Hon’ble Supreme

Court and as the relevant records are not

readily available, liability if any could not

be ascertained.

Factual. The said case is before

Hon’ble Supreme Court of India.

On the outcome of the case, proper

Accounting Treatment will be given in

KPTCL’s books of Accounts.

ii. Rs.121.88 lakh pertaining to award

of interest to three suppliers under the

MSME Development Act, 2006 by the

Rajasthan Industry Facilitation Council

in respect of which the Corporation has

fi led an arbitration suit at Bangalore and

matter is pending.

Factual. The said case is before

Hon’ble Supreme Court of India.

On the outcome of the case, proper

Accounting Treatment will be given in

KPTCL’s books of Accounts.



2.5 Note 36.6 (b) regarding receivables

from and Payable to ESCOMs referred

(aggregating to Rs. 6579.34 lakh and

Rs.6956.07 lakh respectively) being

subject to reconciliation and confi rmation.

The balances now being refl ected in

the accounts are after adjusting certain

receivables against payables which

are pending confi rmation (including Rs.

6,651.79 lakh relating to differential cost

of power debited to ESCOMs as on

31.3.2011 commented upon by us in Para

1.4 (ii) in Annexure to our Auditor’s Report

dated 5.9.2011.

Attention is also drawn to para 3.2(b)

and para 3.7 (b) herein below also

Factual.

2.6 Note 36.8 regarding non provision of

unpaid property tax and land cess (amount

not ascertainable)

Property Tax is being paid / necessary

provision in the Accounts has been

made on receipt of demand Notices

or on estimates obtained from the

concerned Authorities.

3 Our other observations / comments on

the accounts are as under

3.1 Equity infusion of Rs. 88500 lakh

made during 2008-09 to 2010-11 by

Government of Karnataka (shown as

Equity Infusion-Shares pending allotment

in Notes on Accounts) and the utilization

thereof is subject to certain terms viz. the

Corporation is required amongst others

to prepare the design and monitoring

Factual



framework for each project with

investments above Rs.5 crore (of

respective fi nancial years during which

funds were released) as per Government

guidelines dated 01.08.2008. Further

in respect of funds of Rs.200 crores

released on 31.03.2011 the Corporation

to take Cabinet approval for the works

to be taken up by leveraging the equity

infusion as per monitoring / measurable

parameters and as per pre-determined

time schedule. Though shares for Rs.

43,294 lakh have been issued during the

year, the Corporation is yet to comply with

terms of capital infusion and the funds

already utilized (amount not ascertainable)

is subject to ratifi cation by Government of

Karnataka).

3.2 We are unable to ascertain either the

correctness of liability or the additional

liability the Corporation may have to bear

in respect of following amounts

(a) Liability for expenses Rs. 713.39 lakh

shown in Note 06 on accounts which

pertains to share of revenue expenditure

payable to TBHES and outstanding for

over three years

Liability for expenses - Rs.713.39

lakh pertaining to share of revenue

expenditure payable to TBHES will

be reconciled as to know whether the

amount is actually payable.

(b) Sundry liabilities Rs. 3669.55 lakh

shown in Note 06 on Accounts, stated to

be amount released in earlier years by

Energy Dept. payable to ESCOMs (which

is also not included in amount disclosed

in Note 36.6 (b) on Accounts).

Factual.



(c) Sundry Creditors for purchase of

power Rs. 168806 lakh (shown in Note 09

on Accounts) stated to be balance amount

payable relating to purchase made up

to 09.06.2005 (substantial portion of it

outstanding for over three years) together

with interest of Rs.10,821 lakh per annum

provided only in respect of principal

amount due to KPCL.

Factual.

3.3

(a)

Adjustment pending renotifi cation by

GOK Rs.4328.77 lakh shown in Note

06 on Accounts represents adjustments

made after fi nal notifi cation dt. 07.10.2004

(of Opening Balance Sheet of the

Corporation as at 01.06.2002) pertaining

to period prior to 01.06.2002 and having

effect on the networth of the Corporation

as at .01.06.2002. The Corporation has

on 16.03.2012 sought approval of Energy

Department for transfer of Rs.4323.95 lakh

as at 31.03.2011 to Share Capital Account,

in terms of authorization accorded vide

GO dated 07.10.2004. The Corporation

is yet to seek such approval for Rs.4.82

lakh (net) credited to the account during

the year.

Letter will be addressed to GOK seeking

approval for Adjustment to Networth

for Rs. 4.82 Lakhs (net) credited to the

Account during 2011-12.

(b) Further, the amount now disclosed in the

accounts is also subject to

i) Effect of auditor’s qualifi cation on the

accounts for 2009-10 and earlier years

as also qualifi cation Para 3.6 in Annexure

1 to our Auditor’s Report on accounts for

2010-11.

The undischarged liabilities of very

old period for which details are not

available are continued in the books

of accounts of KPTCL. Such liabilities

existed in KPTCL Accounting Units

which are the constituents of KPTCL

before and after the restructuring of

KPTCL in to KPTCL & ESCOMs.. As

such, undischarged liabilities existed

in such KPTCL Units were written back,

as was done in previous years.



ii) Effect of reconciliation of balances with

ESCOMs as stated in Para 2.5 herein

above.

3.4 Others Payable - Sundry liabilities Rs.

12815.69 lakh shown in Note 10 on

Accounts include

(a) Rs. 11524.78 lakh being reversal of

cheque issued but not presented relating

to bank accounts with adverse credit

balance as per books.

Necessary reversal entry has been

passed during April 2012.

(b) Rs. 118.19 lakh being amount recovered

from employees in earlier years, pending

payment to Employees Welfare Trust,

which was informed to us, is yet to be

formed. Non-depositing of the accounts

also contravenes Section 417 of

Companies Act 1956.

Rs.118.19 lakh pertains to the amount

recovered from the employees from

the pay arrears bills consequent to

revision of Pay w.e.f 01/04/2003 and

disbursed to employees during 2009-

10. The amount was recovered with

an intention to utilise the same for

employee welfare activities and not for

refund. The amount recovered from the

employees is not in pursuance of his

contract of service as stated in Sec.417

of the Companies Act 1956. As such,

Sec. 417 of Companies Act 1956 does

not apply. However, an expert opinion

will be obtained and action taken

accordingly in future.

3.5 Fixed assets (Note 12 on Accounts) and

Capital work in Progress (Note 13 on

Accounts) includes value of materials

relating to works pending dismantling

and/or short closed, which are yet to be

removed and /or transferred to stores.

In the absence of necessary details

of amounts relating to such works,

consequential effect could not be

ascertained

The value of material at construction

site for the works pending dismantling

and/or short closed is accounted in the

store only when it is returned to Stores.

Unless the materials are returned to

stores, it is not possible to account the

value of materials in the Accounts.



3.6 Advance Recoverable from Employees

Rs. 329.37 lakh shown in Note 15 on

Accounts and Rs. 118.77 lakh shown in

Note 20 on Accounts includes Rs. 248.32

lakh relating to shortage etc., proposed to

be recovered from future salaries/terminal

benefi ts. In the absence of necessary

details, amount required to be provided

towards irrecoverable balance could not

be ascertained.

The amount is recoverable out of the

monthly salary / Terminal benefi ts of

the employees / retired employees as

the case may be. Since the amount

will be recovered from employees /

retired employees making provision for

irrecoverable balance does not arise.

3.7 Trade Receivables Rs. 202,99.05 lakh

(Note 17 on Accounts)

(a) Includes:

(i) Sundry Debtors for Sale of Power-

Interstate: Rs. 26.38 lakh, claim in

respect of which has since been revised

downward to Rs. 5.83 lakh.

Reconciliation has been done with

respect to allocation of energy,

accordingly energy bills of MPSEP were

revised from Rs.26.38 lakh to Rs.5.83

lakh during July 2012. Necessary

accounting entries will be incorporated

during 2012-2013.

(ii) Wheeling charges receivable (net of

payable) Rs. 1011.68 lakh of which Rs.

562.11 is outstanding for over three years

and not realised till date.

The above dues are in our opinion doubtful

of recovery and had the provision been

made profi t for the year would have been

lower by Rs. 582.66 lakh.

Out of Rs.1011.68 Lakh, Rs. 87.94

Lakh has already been recovered

during 2012-2013. Balance amount

is to be recovered from KSEB

and TNEB, recovery was being

pursued in Southern Regional Power

Committee(SRPC) meeting. KSEB &

TNEB are Government Organisations

of respective States & recovery of the

amount is very much certain. As such,

making provision for doubtful debts is

not necessary.



(b) Sundry debtors – transmission charges

of Rs. 19,260.99 lakh due from ESCOMs

are subject to reconciliation consequential

effect of which is not ascertainable

Rs. 19,260.99 lakh is the amount

outstanding against the Transmission

charges to be collected from ESCOMs.

There is no dispute from any of the

ESCOMs regarding the claim, as the

bills are being issued based on the rate

and capacity allocation as prescribed

by KERC from time to time.

3.8 (a) The Corporation has been providing

for bonus to eligible employees for the

year only to the extent of minimum bonus,

without ascertaining allocable surplus

and set on available., as per Payment

of Bonus Act. Consequently additional

liability under the said Act could not be

ascertained. Attention is also drawn to

Note 10.3 on Accounts- Ex-gratia paid is

subject to post facto approval/ ratifi cation

of the Government of Karnataka.

As the minimum Bonus is being paid,

there is no additional liability in this

regard. However, allocable surplus will

be considered and taken into account

as per the Bonus Act, in future.

(b) No provision in the account has been

made for employee’s contribution towards

provident fund relating to the period

August 1999 to March 2006 amounting

to Rs. 97.23 lakh. The contribution Rs.

89.60 lakh recovered by PF authorities

has been included in Deposits with

Others in Note 14 on Accounts. We are

informed that management is pursuing for

recovery and some recovery having been

effected after the Balance Sheet date, the

amount which will be ultimately borne by

the company cannot be ascertained at

this stage.

The management is pursuing

for recovery from the concerned

employees and some of the employees

have given consent for recovery from

the salary. Rs. 8.32 Lakhs has already

been recovered during 2012-2013.

Employee’s Union has been requested

to pursue recovery from the concerned

employees. All the efforts will be made

to recover the amount in full.



3.9 Other Operating Income – Miscellaneous

Recoveries Rs. 13,592.24 lakh shown

in Note 21 include penalty / liquidated

damages relating to Capital Works

(amount not readily ascertainable). In

light of the Corporation capitalizing extra

cost (including interest) on account of

re-tendering , such penalty/ liquidated

damages, in our opinion, are not in the

nature of “income” referred to in ESAAR,

1985 (para2.15 of Annexure-III) but are

in the nature of receipts in mitigation of

extra cost incurred on account of delay

and hence to be adjusted against cost of

corresponding asset, as per the opinion of

the Expert Advisory Committee of ICAI and

para 2.16 of Annexure-III of ESAAR,1985.

In the absence of necessary details,

consequential effect on the accounts


Action taken is as per Para. 2.15 of

Annexure-III of ESAAR 1985

3.10 Expenses shared by ESCOMS deducted

from Repairs and Maintenance (Note 25)

Rs. 217.35 lakh, Employee Cost (Note

24) Rs. 1177.89 lakh and Administration

and General expenses (Note 26) Rs.

373.15 lakh includes Rs. 1518.79 lakh

claimed from ESCOMs as SLDC charges

which is subject to deduction from Annual

Revenue Requirement (ARR) in the fi ling

with and approval of KERC.

Noted

3.11 Finance Cost (Note 27) is net of interest

of Rs. 199.05 Lakh recovered from a

contractor in respect of advance referred

to in para 4 (a) below.

Factual.



3.12 Contingent Liabilities and Commitments

not provided for (Note 36.1 on Accounts)

does not include claims made in terms of

CERC orders and which are required to

be collected from ESCOMs and remitted

by the Corporation as per the Regulation

but outstanding as on 31.3.2012 – amount

not ascertained.

Payments are being made from

ESCOMs directly to the concerned

Organisations and KPTCL is

discharging its portion of Liability only.

As such, no disclosure has been made

in Note 36.1.

3.13 Attention is drawn to Note 36.11c that

previous years fi gures are not strictly

comparable.

Consequent to revision of Schedule-

VI of Companies Act 1956, Annual

Accounts of 2011-12 has been

prepared and presented as per the

requirements of revised Schedule-VI.

As such, fi gures in the printed Annual

Report for the year 2010-11 cannot be

compared with the fi gures indicated

under 2010-11 in the Annual Report for

the year 2011-12.

4 In our opinion the following actions require

the approval of the Board:

a) Advance of Rs. 3717.05 lakh

made to a contractor included under

Advance to Suppliers and Contractors

Rs. 5636.39 lakh shown in Note 14 on

Accounts (paid out of term loan taken

by the Corporation) and proposed to be

recovered from retention amount.

Board approval will be obtained during

2012-13

b) Extension of time limit for completion of

project permitted during the year resulting

in refund of Rs.7915..9 lakh penalty/

liquidated damages;

Board approval will be obtained during

2012-13



c) Refunds/Withdrawal of Miscellaneous

income Rs. 7724.09 lakh shown

as deduction in Note 21 includes

Rs. 6961.14 lakh being reduction in

power charges earlier treated as income

receivable form ESCOMS and reversed

during the year

Approved vide Board resolution

KPTCL/B37/4437/2001-02/721 dated

15/09/2012

d) Withdrawal of Rs. 262.95 lakh claim for

delayed payment charges made in earlier

year from Hukkeri Electricity Coop Society,

written off and included in Miscellaneous

losses and Write off Rs.868.08 lakh shown

in Note 29 on Accounts

Approved vide Board resolution

KPTCL/B37/4437/2001-02/721 dated

15/09/2012

5. The consequential effect of the above

comments to the extent ascertainable is

as under

(Rs. in lakhs)

Profi t before tax for the

year Overstated by20781.34

Inventories overstated by 0. 87

Trade Receivables

overstated by582.66

Other Current Assets

overstated by 932.00

Long Term Provision

understated by 19265.81


BALANCE SHEET AS AT 31st MARCH 2012

(Amount in Rs.)

Sl.

No.Particulars

Note

No.

Account

CodeAS AT 31-03-2012 AS AT 31-03-2011

IEQUITY AND

LIABILITIES

(1) Shareholder’s Funds

a) Share Capital 1 52.301 1123 26 25 000 690 32 25 000

b) Reserves and Surplus 2 55 to 58 499 52 05 246 422 13 82 406

(2)Equity Infusion (Shares

pending Allotment)3

52.302

&

52.303

552 06 00 000 885 00 00 000

2174 84 30 246 1997 46 07 406

(3) Non-Current Liabilities

a) Long-term borrowings 4 51 to 54 4539 44 55 429 4537 30 44 058

b)Deferred Tax Liability

(Net)5 46.802 274 28 98 876 274 28 98 876

c) Other long term liabilities 6 42 to 53 1351 77 50 080 2126 18 21 688

d) Long-term Provisions 7 44 33 41 21 014 25 86 20 728

6198 92 25 399 6963 63 85 350

(4) Current Liabilities

a) Short-term borrowings 8 51 to 54 700 00 00 000 522 00 00 000

b) Trade payables 9 41 1688 05 70 904 1588 91 66 999

c) Other current liabilities 10 42 to 46 1201 12 27 153 946 18 04 348

d) Short-term provisions 11 42,44,46 84 00 88 890 3673 18 86 947 116 90 47 271 3174 00 18 618

TOTAL 12046 95 42 592 12135 10 11 374

II ASSETS

1 Non-Current assets

(a) Fixed assets

(i) Tangible Assets 12 10 & 12 6828 27 01 147 6329 49 65 155

(ii) Intangible assets 12 A

(iii) Capital work-in-

progress13 14 & 15 1789 53 07 240 1771 72 87 768


BALANCE SHEET AS AT 31st MARCH 2012

(Amount in Rs.)

Sl.

No.Particulars

Note

No.

Account

CodeAS AT 31-03-2012 AS AT 31-03-2011

(b)Long term loans and

advances14

25 to 27

& 28123 15 24 680 195 47 01 598

(c) Other non-current assets 15

16, 17,

26, 28.4

to 28.9 &

31 to 37

2686 72 06 814 2958 38 15 650

2 Current assets

(a) Inventories 16 22 108 20 71 452 106 08 75 689

(b) Trade receivables 1723 &

28.1202 99 05 493 244 84 21 769

(c)Cash and cash

equivalents18 20 & 24 173 81 18 620 393 04 24 985

(d)Short-term loans and

advances19 25 & 27 2 82 41 605 3 88 60 193

(e) Other current assets 2016,28.1

to 28.9131 44 65 541 132 16 58 567

619 28 02 711 880 02 41 203

12046 95 42 592 12135 10 11 374

12046 95 42 592 12135 10 11 374

TOTAL 12046 95 42 592 12135 10 11 374

Signifi cant Accounting

Polices

Other Notes on Accounts

35

36

Sd/-

(C.SREENIVASAN)

Financial Adviser (A&R)

Sd/-

(R.SRIDHARA)

Company Secretary

Sd/-

(ADITI RAJA)

Director (Finance)

Sd/-

(S.SELVAKUMAR)

Managing Director

Refer our report of even date

For RAO & SWAMI


Place: Bangalore. (N.Ramesh)

PARTNERDate : 17.09.2012


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2012

(Amount in Rs.)

Sl.

NoParticulars

Note

No.

Account

Code

Current Year

2011-12

Previous Year

2010-11

IRevenue from operations

(Transmission of Power)21 61 & 62 1663 00 83 890 1426 81 41 212

II Other Income 22 62 22 98 09 525 28 02 73 799

III Total Revenue (I+II) 1685 98 93 415 1454 84 15 011

IV Expenses (Net)

1 Power Purchase & Wheeling Charges 23 70 53 70 512 1 15 36 701

2 Employee Costs 24 75 489 27 12 459 386 79 26 079

3 Repairs and Maintenance 25 74 85 64 77 209 70 90 89 536

4 Administrative and Other Expenses 26 76 36 95 98 135 31 07 44 427

5 Finance Costs 27 78 496 82 16 621 428 90 14 992

6Depreciation and Amortization

expenses28 77 449 53 26 995 406 98 89 290

7 Others 2977, 79 &

80118 51 17 171 110 15 62 236

Total Expenses 1677 28 19 102 1435 97 63 261

VAdd/(Less) : Prior period credits/

(charges)30 65 & 83 -5 06 38 130 -17 23 03 260

VI

PROFIT BEFORE EXCEPTIONAL

AND EXTRAORDINARY ITEMS AND

TAX

3 64 36 183 1 63 48 490

VII Exceptional Items 31 62 5 06 22 898

VIIIPROFIT BEFORE EXTRA

ORDINARY ITEMS AND TAX 8 70 59 081 1 63 48 490

IX Extraordinary items 32 63 & 79

X PROFIT BEFORE TAX 8 70 59 081 1 63 48 490

XI TAX EXPENSE

1 Current Tax 33 81.1 2 01 71 289 76 55 921

2 Fringe Benefi t Tax 81.101 - 97 71 350

3 Deferred Tax 34 81.201

XIIProfi t / (Loss) for the period from

continuing operations 7 66 59 142 86 92 569


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2012

(Amount in Rs.)

Sl.

NoParticulars

Note

No.

Account

Code

Current Year

2011-12

Previous Year

2010-11

XIII Earning per equity share 36.10

(1) Basic 9.84 1.26

(2) Diluted 4.82 .58

Signifi cant Accounting Polices

Other Notes on Accounts

35

36

Sd/-

(C.SREENIVASAN)

Financial Adviser (A&R)

Sd/-

(S.SELVAKUMAR)

Managing Director

Sd/-

(R.SRIDHARA)

Company Secretary

Sd/-

(ADITI RAJA)

Director (Finance)


For RAO & SWAMI





NOTE: 01 SHARE CAPITAL

(Amount in Rs.)

Sl.

NoParticulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

1 Authorised

2,00,00,000

(Previous Year -

1,00,00,000) Equity

shares of Rs. 1000/-

each

2000 00 00 000 1000 00 00 000

2 Issued,

Subscribed and

Paid up

11232625 (Previous

Year - 6903225)

Equity Shares of

Rs1000/- each )

52.301 1123 26 25 000 690 32 25 000

1123 26 25 000 690 32 25 000

TOTAL 1123 26 25 000 690 32 25 000

Note : 1.1.The reconciliation of the number of shares outstanding is set out below :

ParticularsAs at 31st March 2012

No. of Shares

As at 31st March 2011

No. of Shares

Equity Shares at the beginning of the

year 69 03 225 69 03 225

Add : Shares issued 43 29 400

Equity Shares at the end of the year 1 12 32 625 69 03 225

Note : 1.2. Details of share holders holding more than 5% shares

Name of the Share holderAs at

31st March 2012

As at

31st March 2011

No. of Shares % held No. of Shares % held

Hon’ble Governor, State of

Karnataka 1 12 32 625 100.00 69 03 225 100

Note : 1.3 Refer Note 3.1 regarding Equity infusion


NOTE: 2 RESERVES AND SURPLUS

(Amount in Rs.)

Sl.

NoParticulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Capital Reserve

Capital Reserve 56.2 7 45 46 563 2 39 23 665

Other Reserves

Reserve for Materials

Cost Variance56.610 6 74 593

Contribution towards cost

of capital assets55.1 286 26 57 133 219 06 18 846

Special Grant received

from GOK towards fl ood

relief works

55.309 10 00 00 000 10 00 00 000

Special Grant towards

Capital Works55.500 13 64 74 999 11 06 74 999

Surplus in Profi t and

Loss Account58 182 15 26 551 179 54 90 303

TOTAL 499 52 05 246 422 13 82 406

Note 2.1 - Movement in Reserves & Surplus

ParticularsAccount

Code

Opening

BalanceAdditions Deductions

Balance as at

31-03-2012

Capital Reserve 56.2 2 39 23 665 5 06 22 898 7 45 46 563

Other Reserves

Reserve for Material

Cost Variance56.610 6 74 593 6 74 593

Contribution towards cost

of capital assets55.1 219 06 18 846 72 67 99 287 5 47 61 000* 286 26 57 133

Special Grant received

from GOK towards Flood

relief works

55.309 10 00 00 000 10 00 00 000

Special Grant Towards

Capital works 55.500 11 06 74 999 2 58 00 000 13 64 74 999

Surplus in Profi t and

Loss Account58 179 54 90 303 7 66 59 144 5 06 22 896** 182 15 26 551

Total 422 13 82 406 87 98 81 329 10 60 58 499 499 52 05 246


* Advance for sale of Asset wrongly credited to this account in earlier years withdrawn

and adjusted on sale.

** Transfer to Capital Reserve(See Note 2.3)

Note : 2.2 Contribution towards cost of Capital Assets Rs. 286,26,57,133/- includes

amount collected towards Network Augmentation Charges Rs.180,59,78,270/- (for the

year Rs.49,93,01,907) pending orders of KERC.

Note : 2.3 Additions to Capital Reserve Rs. 5,06,22,896 represents gain on sale of

Land transferred from Profi t for the period.

NOTE: 3 EQUITY INFUSION (Shares pending allotment)

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

From Government of

Karnataka

52.302 &

52.303552 06 00 000 885 00 00 000

TOTAL 552 06 00 000 885 00 00 000

Note : 3.1. Amount received from Government of Karnataka towards Equity Capital.

Shares to the extent of Rs.452,06,00,000/- were allotted on 23-06-2012


NOTE: 04 LONG-TERM BORROWINGS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

SECURED LOANS

Term Loans

From Banks53 &

543543 62 22 341 3385 60 56 346

Other Financial

Institutions978 58 29 439 1124 78 22 895

SUB-TOTAL 4522 20 51 780 4510 38 79 241

UNSECURED

LOANS

Term Loans

From Banks53 &

54

From Others 17 24 03 649 26 91 64 817

SUB-TOTAL 17 24 03 649 26 91 64 817

TOTAL 4539 44 55 429 4537 30 44 058


Note 4.1 Particulars of terms of Repayment and Nature of Security

Sl.

No.Name of the Bank Term Security

Balance Outstanding

Current Year

2011-12

Previous

Year 2010-11

1 Loans obtained from UCO Bank 10 Years Hypothecation

of Plant and

machinery

503 00 00 000 503 00 00 000

2 Loans obtained from Vijaya Bank 13 Years Hypothecation

of Plant and

machinery

1148 53 89 003 989 60 31 003

3 Loan drawn from Punjab National

Bank

13 Years Guaranteed by

default Escrow and

Hypothecation of

Assets

189 75 00 000 189 75 00 000

4 Loan drawn from Oriental Bank of

Commerce

13 Years Hypothecation of

Assets

47 50 00 000 57 50 00 000

5 Loan drawn from Corporation Bank 7 Years

(12.5 Cr),

13 Years

(200 Cr)

Hypothecation of

Assets

202 50 00 000 212 50 00 000

6 Loan drawn from Bank of

Maharashtra

7 Years

(25 Cr),

10 Years

(100 Cr)

Hypothecation of

Assets

101 42 00 000 125 00 00 000

7 Loan from Bank of India 7 Years

(66.56 Cr),

13 Years

(300 Cr)

Hypothecation of

Assets

322 08 00 000 366 56 00 000

8 Loans drawn from Bank of Baroda 8.5 Years Hypothecation of

Assets

83 33 33 338 116 66 66 670

9 Loan drawn from Indian Bank 13 Years Hypothecation of

Assets

280 00 00 000 290 00 00 000

10 Loan drawn from Punjab & Sindh

Bank

13 Years Hypothecation of

Assets

165 50 00 000 35 00 00 000

11 Loan drawn from Canara Bank 13 Years Hypothecation of

Assets

500 00 00 000 500 00 00 000

12 Loans drawn from HDFC Bank Title deed 2 58 673


Note 4.1 Particulars of terms of Repayment and Nature of Security

Sl.

No.Name of the Bank Term Security

Balance Outstanding

Current Year

2011-12

Previous

Year 2010-11

Secured Loans from Others

1 Loans from REC 13 Years Guaranteed by

State Govt. and

Escrow

12 80 53 107 14 71 98 828

2 Loans drawn from Power Finance

Corporation Ltd.,

10 Years Guaranteed

by GOK and

Mortgage of

assetsTerm-10

Years

965 77 76 332 1110 06 24 067

UNSECURED LOANS

Others

1 Loans from REC - Rationalised

REC-Loans (Guaranteed by GOK)

Guaranteed by

GOK

24 55 820 36 93 185

2 APDRP - REC Loan Account

Term-13 years

13 Years

4 38 86 349 5 48 57 937

3 State Govt. loans

Term-20 Years

20 Years

5 94 07 217 6 53 47 939

4 Loans of KPTCL parked with GOK

(Ref Note 4.4)

13 Years

6 66 54 263 14 52 65 756

4539 44 55 429 4537 30 44 058

Note : 4.2-There is no continuing default in repayment of any of the above loans or payment

of interest as on 31-03.2012

Note: 4.3 Loans guaranteed by GOK Secured Term Loans

from Financial Institutions Unsecured Term loans from

others

9785829439

2455820

11247822895

3693185

Note : 4.4. Balance loan taken over by GoK & agreed to be serviced by GoK vide Notifi cation

dated: DE 8 PSR 2002 dated: 31.5.2012.


NOTE: 5 DEFERRED TAX LIABILITY

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Deferred Tax

Liability46.802 274 28 98 876 274 28 98 876

TOTAL 274 28 98 876 274 28 98 876

Note 5.1

Company has already provided Deferred Tax Liability to an extent of Rs.274,28,98,876/-

upto previous year 2007-08. The Company is of the view that the DTL provided is

suffi cient and hence not provided during the current year.


NOTE 06 : OTHER LONG TERM LIABILITIES

(Amount in Rs.)

Sl.

NoParticulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

EMPLOYEE BENEFITS

1 Family Benefi t Fund 44.140

to

44.143

42 94 10 032 41 70 78 058

OTHERS

2 Transmission charges collected

pending Refi xation of Tariff-

Hukkeri

46.989 1 26 18 427 1 26 18 427

3 Transmission charges collected

pending Refi xation of Tariff-

ESCOMS (See Note 6.3)

46.984

to

46.988

261 17 65 715 261 17 65 715

4 Payables - ESCOMS 42 & 46 16 52 406 16 52 406

5 Security Deposits in cash from

Suppliers / Contractors

46.101 19 88 95 036 54 53 86 662

6 KPTCL Pensioners / Family

Pensioners Family Benefi t /

Security Fund

46.103 3 58 83 414 4 56 63 742

7 Retention Money - Bill amount

retained as per terms of P.O /

Turnkey Contract

46.104 321 43 26 235 483 32 41 454

8 Penalty recovered pending

decision for refund

(See Note 6.2)

46.109 66 86 50 941 346 10 27 001

9 Encashment of Bank Gaurantee

pending decision for adjustment

to Capital works

56.202 3 49 24 683 2 54 48 076

10 Liability for Expenses 46.4 7 13 38 910 7 13 38 910

11 Sundry Liabilities 46.9 36 69 55 316 219 23 55 317

12 UI Charges payable- Intra state

ABT

46.990

to

46.994

117 33 98 431

13 Security Deposit from

Employees

46.920 51 875 52 800


NOTE 06 : OTHER LONG TERM LIABILITIES

(Amount in Rs.)

Sl.

NoParticulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

14 Additional Fixed cost of TBPCL

recoverable from ESCOMS

pending adjustment to subsidy

46.983 543 84 00 000 543 84 00 000

15 Adjustments pending re-

notifi cation by GOK

52.304

to

52.309

43 28 77 090 43 23 94 689

Sub-Total 1351 77 50 080 2126 18 21 688

TOTAL 1351 77 50 080 2126 18 21 688

Note 6.1 : Family Benefi t Fund represents amount collected from employees and

is net of disbursement made (including Company’s Contribution) on retirement /

death

Note 6.2 :Recoveries from Suppliers / Contractors, including amounts recovered by

way of encashment of Bank Guarantees, for delay in supply / execution of work is

retained in “Penalty Recovered pending decision for Refund”. Upon resolution of the

dispute, the amount in excess of the Refund made to the Suppliers / Contractors, if

any, is suitably adjusted.

Note 6.3 : Rs.261,17,65,715/- is the difference between Transmission charges

approved by KERC (19.42 paise per unit) & Transmission charges already billed by

KPTCL (26.23 paise per Unit). The Transmission Tariff as determined by KERC in

its order dated 31.12.2007 was appealed by KPTCL before the Appellate Tribunal

for Electricity (ATE), New Delhi. The Hon’ble ATE passed an Interim Order staying

the operation of the KERC Order and directed the Company to collect Transmission

Charges @ 19.42 Ps./Unit, which rate has been reckoned for Accounting Revenue for

the year. Subsequently, the ATE in its Order Dated 09.05.2008 allowing the Appeal

of the Company has passed Orders requiring KERC to carry out certain modifi cations

in the Transmission Tariff. The KERC has preferred an Appeal against the Order of

the ATE to the Hon’ble Supreme Court. The decision of the APEX Court would have

an impact on the Profi t reported, the extent of which is not determinable.


NOTE 07 : LONG TERM PROVISIONS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Provision for

Employee Benefi ts

Provision for Leave

encashment

44.130,

44.131

33 41 21 014 25 86 20 728

TOTAL 33 41 21 014 25 86 20 728

Note 7.1 : Movement in Provision

Movement in provision

Opening

Balance

Provision made

during the year

Received from

the Units

Payment made

during the year*

Closing

Balance

25 86 20 728 35 13 23 975 63 52 422 28 21 76 111 33 41 21 014

* Refer Note 24.3 for details

NOTE : 08 SHORT-TERM BORROWINGS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Borrowings for

working capital :

UNSECURED

LOANS

Short term Loans

from Banks 53.324 700 00 00 000 522 00 00 000

TOTAL 700 00 00 000 522 00 00 000

Note 8.1

There is no continuing default in repayment of any of the above loans or payment of interest

as on 31-03.2012


NOTE 09 : TRADE PAYABLES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

I LIABILITIES

Sundry

Creditors for

purchase of

power

Tamilnadu

Electricity Board

41.101 26 44 50 757 26 44 50 757

Andhra Pradesh

Transmission

Corp.

41.104 3 85 04 127 3 85 04 127

Karnataka Power

Corporation Ltd.

41.108 1615 36 77 045 1507 15 55 675

Visvesvaraya

Vidyuth Nigama

Limited

41.109 27 28 35 035 27 28 35 035

P.G.C.I.L. 41.113 88 54 274

JTPCL 41.125 9 97 40 936 9 97 40 936

Royalaseema

Alkalies

41.129 2 23 50 948 2 23 50 948

Tata Company

Ltd.

41.131 1 90 96 055 1 90 96 055

Thanneerbhavi

Co. Ltd.

41.133 43 69 663

Chathisghar State

Electricity Board

41.156 83 32 195 83 32 195

Mysore Paper

Mills Ltd

41.301 7 74 93 528

Provision for

Liability for

Purchase of

Power

41.500 15 83 806 15 83 806

1688 05 70 904 1588 91 66 999

TOTAL 1688 05 70 904 1588 91 66 999


NOTE 10 : OTHER CURRENT LIABILITIES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Current Maturities of Long

Term Debts.

From Banks 206 98 34 005 298 31 80 600

From Others 155 87 54 622 178 00 97 045

Sub-Total 362 85 88 627 476 32 77 645

Interest accrued but not due on

borrowings

46.710 33 81 63 455 33 81 63 455 33 47 98 948 33 47 98 948

Other Payables

Sundry Liabilities 46.9 128 15 69 381 18 84 45 192

Miscellaneous Deposit 46.966 18 61 81 490 13 71 24 346

UI charges collected from short

term open access customers

and payable / adjustable to

ESCOMS

46.937 21 93 60 296 40 73 29 951

Sub-Total 168 71 11 167 73 28 99 489

Security Deposits in cash from

Suppliers / Contractors

46.101 11 37 77 950

KPTCL Pensioners / Family

Pensioners Family Benefi t /

Security Fund

46.103 2 05 80 000

Retention Money - Bill amount

retained as per terms of P.O /

Turnkey Contract

46.104 162 42 62 252

Penalty recovered pending

decision for refund

46.109 131 02 04 026

Deposit Contribution works 47.3 61 92 18 424 100 62 02 258

Liability for Suppliers/Works 42 128 07 12 828 97 72 53 568

Payables - BESCOM 42 35 83 45 138 69 38 04 222

Payables - MESCOM 42 10 07 54 208 9 08 42 685

Payables - HESCOM 42 12 04 81 483 27 67 06 576

Payables - GESCOM 42 4 87 588 3 85 38 763

Payables - CESCO 42 2 81 89 897 9 57 93 517

Sub-Total 557 70 13 794 317 91 41 589



(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Staff Related Liabilities

Pension & Leave contribution

remitted by other Department

payable to P&G Trust

44.275 7 21 15 770 4 36 66 042

Receivables - P & G Trust 28.907 5 87 27 621 -15 43 25 117

Provision for KPTCL

Contribution to Pension Scheme

with effect from 01/4/2006

44.150 11 255 9 69 848

Salary payable 44.310

&

44.311

24 44 871 20 95 023

Unpaid Salaries 44.210 37 852 77 535

Unpaid Bonus 44.220 27 086 26 289

Bonus payable 44.320 20 89 324 58 08 519

Ex-gratia payable 44.330 3 32 01 781 2 96 23 184

Sub-Total 16 86 55 560 -7 20 58 679

Funds received from Resources

Section, KPTCL to SLDC

46.108 3 29 57 362 31 60 71 135

Liability for Expenses 46.410

To

46.470

47 35 49 318 84 91 92 006

Credit balance in Receivable

towards payment of Prinicipal,

Int & Gurantee commission on

borrowings and others

BESCOM 28.853 46 00 974 34 14 004

MESCOM 28.854 4 84 945 4 07 219

HESCOM 28.855 1 06 26 295 82 27 515

GESCOM 28.856 11 45 756 9 47 223

Receivable from GOK towards

payment of Prinicipal, Int &

Gurantee commission on loans

parked with GOK

28.859 1 78 39 558 1 73 07 798

CESCOM 28.860 46 50 659 36 14 381



(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Amount recoverable in cash

from BESCOM Units in respect

of other transaction

28.926 6 32 65 678 -57 61 80 434

Amount recoverable in cash

from MESCOM Units in respect

of other transaction

28.927 25 74 005 -9 92 55 491

Sub-Total 61 16 94 550 52 37 45 356

TOTAL 1201 12 27 153 946 18 04 348

Note 10.1

Details of Current maturities of long term debts

Sl.

No.Name of the Bank From Banks

Current Year

2011-12

Previous Year

2010-11

1 Loans obtained from Vijaya Bank

(Hypothication of assets) Term-13 Years

41 06 42 000 35 81 42 000

2 Loan drawn from Punjab and Sindh Bank

(Guaranteed by default Escrow and

Hypothication of Assets)

Term-13 Years

34 50 00 000 34 50 00 000

3 Loan drawn from Oriental Bank of Commerce

(Hypothication of assets)

Term-13 Years

10 00 00 000 10 00 00 000

4 Loan drawn from Corporation Bank


Term-7 Years (12.5 Cr),13 Years (200 Cr)

10 00 00 000 10 00 00 000

5 Loan drawn from Bank of Maharashtra


Term-7 Years (25 Cr),10 Years(100 Cr)

23 58 00 000 20 00 00 000

6 Loan from Bank Of India(Hypothication of

assets)

Term-7 Years(66.56 Cr),13 Years(300 Cr)

44 48 00 000 44 48 00 000


Note 10.1

Details of Current maturities of long term debts

Sl.

No.Name of the Bank From Banks

Current Year

2011-12

Previous Year

2010-11

7 Loans drawn from Bank of Baroda

(Hypothecation of Assets)

Term-8.5 Years

33 33 33 332 33 33 33 332

8 Loan drawn from Indian Bank (Hypothication

of assets)

Term-13 Years

10 00 00 000 10 00 00 000

9 Loan drawn from Bank of Rajasthan


Term-13 Years

100 00 00 000

10 Loans drawn from HDFC (Title deed) 2 58 673 19 05 268

Sub-Total 206 98 34 005 298 31 80 600

From Others

1 Loans from REC (Guaranteed by State Govt.

and Escrow)

Term-13 years

1 91 45 719 1 91 45 719

2 Loans drawn from Power Finance Corporation

Ltd., (Guaranteed by GOK and Mortgage of

assets)

Term-10 Years

144 28 47 735 159 54 04 059

UNSECURED LOANS

Others

1 Loans from REC - Rationalised REC-Loans

(Guaranteed by GOK)

12 37 365 42 44 154

2 APDRP - REC Loan Account

Term-13 years

1 09 71 588 1 09 71 588

3 State Govt. loans

Term-20 Years

59 40 722 59 40 722

4 Loans of KPTCL parked with GOK

(Ref Note 4.4)

7 86 11 493 14 43 90 803

Sub-Total 155 87 54 622 178 00 97 045

Grand Total 362 85 88 627 476 32 77 645


Note 10.2 : As per information available with the Company, there are no dues to Micro,

Small and Medium Enterprises as defi ned under Micro, Small and Medium Enterprises

Development Act, 2006.

Note 10.3 : Exgratia paid to employees in lieu of Bonus for the years 2000-01 to 2010-11 is

subject to post facto approval/ratifi cation of the Government of Karnataka.

Note 10.4 : Balances due to/due from P&G Trust is under reconciliation

Note :10.5 : There is no continuing default in repayment of any one of the above loan or

payment of interest as on the date of 31-03.2012

NOTE 11 : SHORT TERM PROVISIONS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Provision for Employee

Benefi ts

Provision for Pension

and Gratuity payable to

P & G Trust

44.122,

44.274

52 14 67 168 70 27 57 809

Other Provisions

Provision for Income-Tax 46.800 1 74 18 570 35 95 19 018

Provision for FBT 46.801 1 66 86 000

Adhoc Provision for work

completed in the fi eld but

bills not received

42.601 30 12 03 152 9 00 84 444

TOTAL 84 00 88 890 116 90 47 271

Note 11.1 : Liability for pension and gratuity for service up to 31.5.2002 is met by the

Government of Karnataka and liability for the subsequent period arising from 1.6.2002,

is met by the Corporation by contribution to the Trust, based on Actuarial valuation.

Note : 11.2 :Pending Receipt of report of actuarial valuation as on 31/03/2012,

monthly Pension/Gratuity contribution for the year is accounted as per rates indicated

in report of actuarial valuation report as on 31/03/2011 (previous year report as on

31/03/2009) as under

2011-12 2010-2011 Remarks

Pension 29.11% 26.13% Percentage of Basic+ Dearness Pay+DA

Gratuity 3.34% 2.24% Percentage of Basic+DA


Note : 11.3: Balances due to the Pension Trust and the Gratuity Trust is under

reconciliation with the balance as per the books of the respective trusts.

Note : 11.4 Movement in Provision for Pension & Gratuity

Movement in provision

Opening

Balance

Provision made during

the year

Payment made during

the year

Closing

Balance

70 27 57 809 82 99 98 629 101 12 89 270 52 14 67 168


NO

TE

-12

FIX

ED

AS

SE

TS

AN

D A

CC

UM

ULA

TE

D D

EP

RE

CIA

TIO

N -

TA

NG

IBLE

AS

SE

TS

Gro

ss B

lock

D

epre

ciat

ion

Net

Blo

ck

Ass

et G

roup

A/c

Cod

eA

s at

01/0

4/20

11A

dditi

ons

Ded

uctio

ns/

Adj

ustm

ents

As

at

31/0

3/20

12

A/c

Cod

e

As

at

01/0

4/20

11A

dditi

ons

Ded

uctio

ns/

Adj

ustm

ents

As

at

31/0

3/20

12

As

at

01/0

4/20

11A

s at

31/

03/2

012

Land

& R

ight

s10

.113

9 01

37

881

24 7

9 67

396

80

48 3

0516

4 61

53

582

12.1

139

01 3

7 88

116

4 61

53

582

Land

hel

d un

der

Leas

e

10.1

02

& 1

0.10

34

34 6

9 77

3

- 8

47 5

714

26 2

2 20

2

4

34 6

9 77

34

26 2

2 20

2

Bui

ldin

gs10

.236

0 32

55

472

26 7

7 17

225

1 05

24

239

388

14 9

6 93

612

.2 8

0 08

51

232

12 4

1 82

975

59

967

92

50 9

4 17

428

0 24

04

240

295

64 0

2 76

2

Hyd

raul

ic W

orks

10.3

35 6

4 91

588

6 24

62

096

84

84 1

1342

74

37 7

9712

.3 5

19

89 9

962

09 0

8 19

6 7

9 32

4 7

29

77 5

1630

45

01 5

9235

44

60 2

81

Oth

er C

ivil

Wor

ks10

.432

53

41 9

552

42 1

3 95

5 1

8 62

594

35 1

4 18

504

12.4

4 6

5 97

733

1 14

68

510

17

709

5 8

0 83

952

27 8

7 44

222

29 3

3 34

552

Pla

nt &

Mac

hine

ry10

.552

81 0

6 72

377

542

37 4

1 40

1-7

6 53

51

737

5746

90

62 0

4112

.515

91

71 7

8 19

228

3 43

92

629

-29

52 1

5 11

318

45

63 5

5 70

836

89 3

4 94

185

3901

27

06 3

33

Line

s C

able

Net

wor

ks10

.631

51 0

9 69

677

388

27 0

5 50

114

92

74 3

3935

54 2

9 49

517

12.6

10 0

3 38

73

983

168

03 4

4 03

2-3

18

17 2

9811

68

24 0

0 71

721

47 7

0 95

694

2386

05

48 8

00

Veh

icle

s10

.76

75 3

2 24

41

20 3

2 15

6-

48 1

3 79

57

47 5

0 60

512

.7 5

20

31 8

67 2

4 50

007

- 51

51

356

4 9

3 30

518

1 55

00

377

2 54

20

087

Fur

nitu

re &

Fix

ture

s10

.811

39

06 3

461

07 4

5 03

9-

35 2

1 12

612

11

30 2

5912

.8 4

04

14 9

49 6

5 84

979

- 1

91 8

40 4

68

08 0

887

34 9

1 39

77

43 2

2 17

1

Offi

ce E

quip

men

ts10

.93

33 2

2 17

4 1

6 35

296

1 6

4 16

03

51 2

1 63

012

.9 1

71

96 3

80 1

3 96

247

- 2

01 3

74 1

83

91 2

531

61 2

5 79

41

67 3

0 37

7

Tota

l

9025

50

99 4

8799

3 32

20

065

-59

61 7

6 47

999

59 2

1 43

073

26

96 0

1 34

332

468

17 2

7 57

5-3

3 24

19

981

3130

94

41 9

2663

29 4

9 65

155

6828

27

01 1

47

Pre

viou

s Y

ear

fi gur

es

7808

59

28 2

8312

87 8

5 19

108

-70

93 4

7 90

490

25 5

0 99

487

23

05 9

1 43

330

421

83 9

5 05

5-3

1 74

04

054

2696

01

34 3

3155

02 6

7 84

953

6329

49

65 1

56


Fixed Assets

Note 12.1 - Land and Title Deeds

a) Corporation is in possession of lands aggregating 6809 Acres 39 Guntas consisting

of 6257 Acres 24 Guntas under full ownership, 173 A 13 G of Forest land and 379 A 2 G

of Government & Private Lands on lease. Further, process of updating the land records

including title is in progress.

b) Land Rs. 164,61,53,582/- includes Rs.12,12,000/- given on lease. Refer Note 21.1

Note 12.2 - Land and Buildings

Land and Buildings (including Powerhouses) but excluding installations have been

accounted on the basis of Balance Sheet Restructuring Program issued by the Government

of Karnataka. Formalities for transfer of title of certain assets in favor of the Corporation are

pending.

Note 12.3 - Plant & Machinery

Plant & Machinery does not include cost of assetss obtained on lease from IDBI are

retained by the Corporation after expiry of the Primary lease period pending agreement on

the price. The lessor has demanded Rs.1,12,50,000 (including Rs.59,60,000 of assets held

by ESCOMs) which is not accepted by the Corporation. Necessary entry for capitalisation

of the asset and depreciation from 31/12/2003, date of expiry of Primary lease period, will

be provided in the Accounts after settlement on the price.

NOTE 12A : INTANGIBLE ASSETS

(Amount in Rs.)

Sl.

No.Particulars

Account

codeAs at 31-03-2012 As at 31-03-2011

Custom built

Application software

for internal use

18 84 65 472 84 65 472 84 65 472 84 65 472

Less : Depreciation

to date

84 65 472 84 65 472 84 65 472 84 65 472

Written down value

Sub Total

TOTAL


NOTE: 13 CAPITAL WORKS IN PROGRESS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Capital Work in

Progress

14 1789 53 07 240 1771 65 36 285

Sub Total 1789 53 07 240 1771 65 36 285

Revenue

expenses

pending

allocation over

Capital Works

15.201

to

15.206

7 51 483

Sub Total 7 51 483

TOTAL 1789 53 07 240 1771 72 87 768

Note 13.1 :Balance includes Rs.22,76,01,956/- in respect of CWIP(14 Series) under

reconciliation to be identifi ed with correct Work Order. Same will be reconciled

during 2012-13


NOTE 14 : LONG TERM LOANS AND ADVANCES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

1 Capital Advances

Unsecured

(Considered Good)

Advances to

Contractors

28.411 1 06 577 76 20 94 975

1 06 577 76 20 94 975

2 Security Deposits

Unsecured

(Considered Good)

Security Deposit made

with ESCOMS for

obtaining power supply

to KPTCL Installations

28.936,

28.937

3 42 140 3 42 140 2 61 220 2 61 220

3Other Loans and

Advances

Secured (Considered

Good)

Advances to Staff -

Interest Bearing

27.101

to

27.106

16 91 547 16 91 547 33 25 256 33 25 256

Unsecured

(Considered Good)

Deposits with Others 28.935 55 59 96 610 55 59 96 610 49 07 96 400 49 07 96 400

Advance to Suppliers

and Contractors

25 & 26 56 36 38 923 23 90 39 602

Advance Income Tax,

Tax deducted at source,

other tax payment (Net

of Provision) (Refer

Note No.14.1)

27.4 &

28.821

10 97 48 883 45 91 84 145

67 33 87 806 69 82 23 747

TOTAL 123 15 24 680 195 47 01 598

Note 14.1 : Includes Rs.4,54,06,442 withheld by department against demand disputed

by the Company refered to in Note No.36.1


NOTE 15 : OTHER NON CURRENT ASSETS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

ASSETS NOT IN USE

WDV of Faulty /

Dismantled Assets

16.2 5 05 63 980 9 44 10 760

Transformers issued to

Contarctors / Suppliers for

repairs

26.604 18 29 33 713 15 51 74 914

Deferred Costs

Preliminary expenditure

on survey / feasability

studies of projects not yet

sanctioned

17.301 3 12 73 816 1 84 77 566

Turnkey Contractors

Control Account

26.605 733 22 30 709 819 56 55 001

Amounts Recoverable

from Employees

28.401 3 29 37 577 4 69 58 764

Subsidy / Grants

receivable from GOK

28.620 1396 91 88 716 1398 42 11 876

Claims for Loss / Damage

to Materials

28.72

Claims for Loss / Damage

to Capital Assets

28.74 3 00 848 2 82 478

Other Receivables 28.8 &

28.9

35 61 704 61 76 32 737

UI Charges pertaining to

Intra state ABT

28.976 to

28.980

117 33 98 431

Prepaid Expenses 28.820 1 20 55 683 1 63 74 691

Regulatory Asset-

Receivable towards

additional fi xed cost of

TBPCL from ESCOMS

28.968 to

28.973

543 84 00 000 543 84 00 000


NOTE 15 : OTHER NON CURRENT ASSETS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Electricity Tax and

Other levies payable to

Government

46.300 22 17 411 -540140

Pooled Loan Account

(Refer Note 4.4)

53.999 6 66 54 263 14 52 65 756

Inter Unit Accounts 31 to 37 -25 51 11 606 -30 18 87 184

TOTAL 2686 49 89 403 2958 38 15 650

Note 15.1- WDV of Faulty/ Dismantled Asset aggregating Rs. 5,05,63,980/- is net of

depreciation which has been charged at normal rates on WDV as on date of dismantling.

Note 15.2 - Transformers with book value of Rs. 18,29,33,713/- sent for repairs is net of

depreciation charged on such assets during the period of repair on WDV as on date of

dismantling.

Note 15.3- Inter Unit Account - Rs. 25,51,11,606/- represents net credit balance under

reconciliation


NOTE - 16 INVENTORIES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

I Stores & Spares

Materials Stock Account 22.610 108 30 92 236 105 48 87 361

Materials in Transit

Account.

22.680 3 75 677

Sub-Total 108 30 92 236 105 52 63 038

II Materials stock Excess/

Shortage Pending

Investigation.

Stock Excess pending

Investigation.

22.810 - 11 07 443 - 2 89 398

Stock Shortage pending

investigation.

22.820 86 659 59 02 049

Sub-Total - 10 20 784 56 12 651

TOTAL 108 20 71 452 106 08 75 689

Note 16.1 - Material stock includes Rs. 82,60,329/- value of items identifi ed as obsolete.


NOTE : 17 TRADE RECEIVABLES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

(Un-secured and

considered good)

Sundry Debtors for

Transmission Charges

BESCOM 23.101 19 72 52 311 22 75 44 367

MESCOM 23.102 17 77 61 635 16 80 49 810

HESCOM 23.103 70 05 90 457 107 34 99 604

GESCOM 23.104 46 88 24 478 23 98 26 867

CESCO 23.107 38 16 70 404 62 60 17 125

Sundry Debtors for

Transmission charges-

Hukkeri Co-op Soceity.

23.109 2 27 354

Sundry Debtors for

sale of Power – Inter

State

23.6 26 38 440 26 38 440

Sundry debtors -

Delayed payment

charges

23.7 2 62 95 130

Sub-Total 192 87 37 725 236 40 98 697

Sundry debtors -

Wheeling charges-

Other states

28.120 10 11 67 768 10 11 67 768 8 43 23 072 8 43 23 072

Sub-Total 202 99 05 493 244 84 21 769

(Un-secured and

considered doubtful)

GESCOM 92 35 580 92 35 580

Sub-Total 203 91 41 073 244 84 21 769

Provision for Doubtful

Debts23.8 92 35 580 92 35 580 92 35 580 92 35 580

TOTAL 202 99 05 493 243 91 86 189


Note 17.1 - Sundry Debtors

This Year Previous Year

1) Outstanding Over 6 months 8 17 01 487 9 42 47 810

2) Others 194 82 04 006 234 49 38 379

NOTE 18 : CASH AND CASH EQUIVALANTS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Balance with Banks 20 & 24 167 42 51 920 167 42 51 920 392 72 13 860 392 72 13 860

Cash Accounts

Cash on Hand 24.110 8 43 070 8 43 070 4 79 839 4 79 839

Others

Govt. Treasury 24.850 81 976 81 976

Postage stamps on

hand24.120 1 82 155 1 28 522

Imprest 24.210 24 26 481 21 90 500

Funds in Transit 24.5,

24.66 03 33 018 6 30 23 630 3 30 288 27 31 286

TOTAL 173 81 18 620 393 04 24 985

Note : 18.1 : One Bank Account with Book Balance of Rs.2,16,323/- is under attachment

of the PF Authorities

Note : 18.2 : The Book Balance in ESCROW Bank Accounts - Rs. 3,21,58,022/-


NOTE 19 : SHORT TERM LOANS AND ADVANCES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

Advances

Recoverable in cash

or in kind or for value

to be received

Secured Considered

good

Advances to Staff -

Interest Bearing

27.101

to

27.106

14 77 810 22 12 301

Unsecured

Considered good

Advances to Staff -

Interest Free

27.201

to

27.210

2 07 02 525 2 93 88 209

Amount Recoverable

from Suppliers and

Contractors towards

TDS remitted by

KPTCL on their behalf

25.502 60 61 270 72 59 683

TOTAL 2 82 41 605 3 88 60 193


NOTE 20 : OTHER CURRENT ASSETS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeAs at 31-03-2012 As at 31-03-2011

WDV of Obsolete/

Scrapped Assets

meant for disposal

16.1 12 44 82 977 6 01 23 460

Less : Provision for

obsolescence 10 46 28 326 1 98 54 651 4 80 47 699 1 20 75 761

Income Accrued but

not Due28.3 84 69 141 1 67 37 021

Amounts Recoverable

from Employees28.4 1 18 76 751

Other receivables from

GOK28.8 50 00 00 000

Other Receivables -

BESCOM

28.8 & 28.9,

28.1256 93 42 607 6 33 74 101

Other Receivables -

MESCOM

28.8 & 28.9,

28.12610 45 19 155 10 42 39 218

Other Receivables -

HESCOM

28.8 & 28.9,

28.12714 57 35 227 30 01 51 283

Other Receivables -

GESCOM

28.8 & 28.9,

28.12827 50 63 417 24 44 10 410

Other Receivables -

CESCO28.9 5 39 43 059 10 95 24 741

Payable to BESCOM

towards loan drawn by

KPTCL on behalf of

BESCOM

42.258 5 20 492 5 20 492

Payable to HESCOM


KPTCL on behalf of

HESCOM

42.260 75 24 429 75 24 429

Payable to GESCOM


KPTCL on behalf of

GESCOM

42.261 12 85 154 12 85 154

Pooled Loan Account

(Refer Note 4.4)53.999 7 86 11 493 14 43 90 803

Other Receivables28.810,

28.9173 77 19 965 129 46 10 890 31 74 25 154 130 95 82 806

TOTAL 131 44 65 541 132 16 58 567


NOTE: 21 REVENUE FROM OPERATIONS

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeCurrent Year 2011-12 Previous Year 2010-11

Transmission

Charges :-

BESCOM. 61.211 746 75 19 072 595 09 68 264

MESCOM. 61.212 128 95 94 544 96 85 64 358

HESCOM. 61.213 290 36 85 556 236 89 75 154

GESCOM. 61.214 206 54 10 960 136 83 18 528

CESCO 61.217 165 46 17 312 113 70 74 166

Hukkeri Co-op

Soceity.61.219 4 05 26 300 5 27 08 846

Open Access

Customers61.218 26 47 88 286 22 95 10 720

Sub - total 1568 61 42 030 1207 61 20 036

Other Operating

Income

Profi t on sale of

stores62.330 4 48 27 013 1 35 01 025

Sale of scrap 62.340 8 18 01 194 8 79 62 032

Other Miscellaneous

receipts 62.360 1 40 38 665 1 77 76 080

Reactive Energy

Charges demanded

on IPPs

62.361 1 62 270 1 41 566

Revenue from IPPs

for excess drawal of

Energy from KPTCL’s

Grid

62.362 39 6 97 672

Open access

Processing fee62.363 51 30 586 40 48 960

Excess found on

physical verifi cation

of Materials Stock.

62.905 17 95 044 4 74 020

Supervision Charges 62.907 10 59 14 984 7 83 31 919

Other Receipts 62.908 78 54 136 23 11 802


NOTE: 21 REVENUE FROM OPERATIONS

(Amount in Rs.)

Sl.

No.Particulars

Account


Miscellaneous

Recoveries.62.917 135 92 23 618 202 10 17 362

Incentives received 62.918 29 637 2 35 035

Wheeling charges

recoveries61.8 5 55 74 159 5 00 24 751

Delayed payment

charges from Hukkeri

Electricity Co-op

Soceity

61.915 2 62 95 130

Sub - total 167 63 51 345 230 28 17 354

Less:Refunds/

withdrawal of

miscellaneous

income accounted in

the previous Year

83.830,

83.834-73 24 09 485 94 39 41 860 -110796178 219 20 21 176

TOTAL 1663 00 83 890 1426 81 41 212

Note 21.1 : Miscellaneous recoveries Rs.135,92,23,618/- includes :

(i) Lease Rent Rs. 40,400/- in respect of lease of 21 x 88 meters of land at TL &

SS Chikkodi under non-cancellable lease grant in the present year. Lease amount is

recognised on Straight line basis over the lease term.

(ii) Penalties, liquidated damages recovered and not refunded for more than three

years.

(iii) Unclaimed credit balance under Deposit Account - 46.101 taken to Income.


NOTE: 22 OTHER INCOME

(Amount in Rs.)

Sl.

No.Particulars

Account


Interest

Interest on Staff Loans

and Advances.

62.210

to

62.214

77 70 817 1 31 05 180

Interest on securities. 62.221 300 600

Interest on Bank Fixed

Deposits

62.222 5 36 39 255 3 22 45 329

Interest on Bonds /

Debentures of other

Electricity Boards

62.223

Interest on Advances

to Suppliers /

Contractors

62.260 18 537

Interest from Banks. 62.270 1 26 274 68 555

Sub-Total 6 15 55 183 4 54 19 664

Other Non-Operating

Income

Rental from Staff

Quarters

62.901 7 56 92 448 4 77 45 887

Rental from others 62.902 8 56 010 7 13 454

Rental from BESCOM 62.925 4 91 55 226 4 25 85 727

Rental from MESCOM 62.926 73 37 085 55 74 232

Rental from HESCOM 62.927 46 69 070 42 23 488

Rental from GESCOM 62.928 53 39 354 37 60 171

Rental from CESC 62.929 69 40 024 68 20 906

Excess provision in

earlier years no longer

required

62.923 1 82 65 125 12 34 30 270

Sub-Total 16 82 54 342 23 48 54 135

TOTAL 22 98 09 525 28 02 73 799


NOTE : 23 Power Purchase and Wheeling Charges

(Amount in Rs.)

Sl.

No.Particulars

Account

Code

Current Year

2011-12

Previous Year

2010-11

Purchase of Power

Tamilnadu Electricity

Board

70.101 24 36 589

Transmission charges to

Power Grid Corporation

of India Ltd. (Refer

Note 23.1)

70.113 21 83 413 91 00 112

Wheeling Charges -

TNEB

70.400 31 87 099 53 70 512

TOTAL 53 70 512 1 15 36 701

Note - 23.1 The Expenditure Booked pertains to the Power purchased prior to the

period 9/06/2005, paid in terms of CERC order


NOTE : 24 EMPLOYEE COST

(Amount in Rs.)

Sl.

No.Particulars

Account


Salaries and Wages

Salaries 75.1 186 07 32 941 123 13 20 849

Dearness Pay 75.180

to

75.185

19 61 74 169 72 69 29 616

Over Time 75.2 6 42 63 512 4 38 84 374

Dearness Allowance 75.3 133 78 24 918 106 48 51 045

Other Allowances 75.4 40 20 94 639 30 75 12 899

Bonus & Exgratia 75.5 3 69 94 221 4 37 98 324

Earned leave

encashment

75.617 35 13 23 975 13 40 06 595

Payment to helpers/

employees of

Monsoon gang

75.630 1 20 10 065 1 23 20 116

Sub-Total 426 14 18 440 356 46 23 818

Contribution to

Pension & Other

Funds

KPTCL Contribution

to P&G Trust (Refer

Note No. 24.4)

75.830,

75.831

&

75.840

95 87 48 530 55 42 24 893

Sub-Total 95 87 48 530 55 42 24 893

Staff Welfare

Medical Expenses

reimbursement

75.611 4 28 67 838 3 46 78 201

Leave travel

assistance

75.612 900 34 716

Payment under

workmens

compensation Act

75.629 9 82 505


NOTE : 24 EMPLOYEE COST

(Amount in Rs.)

Sl.

No.Particulars

Account


Staff Welfare

expenses

(Refer Note 24.5)

75.7 2 56 29 358 1 81 44 544

Terminal Benefi ts -

Others

75.8 5 48 146 5 10 483

Terminal Benefi ts

- FBF Contribution

(Refer Note 24.6)

75.860 1 12 55 603 79 33 146

Sub-Total 8 03 01 845 6 22 83 595

Less : Expenses

shared by ESCOMS

75.910 -11 77 89 355 -7 54 52 227

Expenses Capitalised 75.9 -28 99 67 001 -40 77 56 356 -23 77 54 000 -31 32 06 227

TOTAL 489 27 12 459 386 79 26 079

Note 24.1 : Salaries and Wages includes following in respect of employess covered under

New Defi ned Contributory Pension Scheme (NDCPS)

Salaries 75.117,75.189 55 20 85 824

Dearness Pay 75.187 6 20 24 381

Dearness Allowance 75.317 39 92 11 473

101 33 21 678

Note 24.2 : Provision for Leave Encashment for the year has been made at 1/12th of the

Pay & Allowances, pending Actuarial valuation

Note 24.3 :Earned Leave(EL) encashment disbursed during the year

75.616-EL encashment employees coverd under NDCPS 4 77 38 025

75.617-EL encashment 13 14 79 873

75.618-EL encashment - Retired / Deceased employees 10 29 58 213


Note 24.4 :Liability for pension and gratuity for service up to 31.5.2002 is met by the

Government of Karnataka and liability for the subsequent period arising from 1.6.2002, is met

by the Corporation by contribution to the Trust, based on Actuarial valuation. Contribution to

employees covered under NDCPS applicable to employees who have joined after 1-4-2006

Rs. 128749901

Note 24.5 : Staff Welfare Expenses includes :

Contribution to Labour Welfare Fund 5,46,993

EPF contribution in respect of Contract Employees 48,90,832

Pension, Leave Contribution of employees of other 6,82,004

department deputed to KPTCL

Note 24.6 : Terminal Benefi ts - FBF represents amount borne by the Company in terms of

the Scheme on employee’s death while in service.


NOTE : 25 REPAIRS AND MAINTENANCE

(Amount in Rs.)

Sl.

No.Particulars

Account


Plant and

Machinery74.1 59 17 84 948 48 80 89 989

Buildings 74.2 14 23 58 353 15 25 88 317

Civil Works 74.3 4 26 92 006 2 44 52 787

Lines, Cable Net

Work Etc.74.5 9 39 01 478 7 53 38 370

Vehicles 74.6 50 16 846 45 05 933

Furniture and

Fixtures74.7 1 94 143 1 55 579

Offi ce Equipments. 74.8 34 04 022 29 45 572

Sub Total 87 93 51 796 74 80 76 547

Less : Expenses

shared by

ESCOMS

74.910 -2 17 35 844 -3 78 79 531

Expenses

Capitalised74.900 - 11 38 743 - 11 07 480

TOTAL 85 64 77 209 70 90 89 536


NOTE : 26 ADMINISTRATION AND GENERAL EXPENSES

(Amount in Rs.)

Sl.

No.Particulars

Account


Administration

Expenses

1 Rent 76.101 45 50 814 56 67 926

2 Rates & Taxes 76.102 2 22 17 668 1 49 31 001

3 Expenses incurred

towards security

arrangements

76.103 2 28 84 788 1 98 06 375

4 Pagers cellular phones

E-mail, Telephone,

Trunk call, Telegrams

and Telex Charges

76.111 +

76.112

2 11 64 231 2 11 07 310

5 Postage 76.113,

76.114

1 45 61 508 1 36 87 580

6 Air net, Internet &

Broadband Charges

76.116 2 71 68 860 1 99 98 937

7 Legal Charges 76.121 93 11 915 87 88 722

8 Audit Fees 76.122 9 85 053 13 79 950

9 Consultancy charges 76.123 20 83 271 13 91 416

10 Technical Fees 76.124 3 59 657 44 500

11 Other Professional

Charges

76.125 +

76.126 +

76.127 +

76.128 +

76.129

4 14 22 208 3 95 16 979

12 Conveyance & Travel

expenses

76.131 To

76.135 &

76.137 to

76.139

13 96 09 595 11 47 67 044

13 Vehicle running

expenses

76.136 3 01 23 832 2 74 18 575

Sub - Total 33 64 43 400 28 85 06 315


NOTE : 26 ADMINISTRATION AND GENERAL EXPENSES

(Amount in Rs.)

Sl.

No.Particulars

Account


OTHER EXPENSES

14 Fees & Subscriptions 76.151 1 42 15 896 1 49 19 903

15 Books, periodicals and

dairies

76.152 3 56 663 3 77 528

16 Printing & Stationery 76.153 1 28 53 900 1 09 25 078

17 Advertisement

Expenses

76.155 2 51 32 416 2 18 37 058

18 Computer stationary

and fl oppies

76.156 38 51 332 28 73 298

19 Electricity Charges 76.158 3 12 83 567 2 98 80 817

20 Water Charges 76.160 48 27 083 29 14 198

21 Entertainment 76.162 1 70 816 1 76 371

22 Contributions to

Workers wellfare cess

76.166 1 71 149

23 Miscellaneous

expenses

76.190 +

76.191 +

76.192

2 00 53 264 1 06 77 877

24 Freight & other material

related expenses

76.201

To

76.282

25 46 972 52 25 000

Sub - Total 11 54 63 058 9 98 07 128

Less : Expenses

shared by ESCOMS

76.910 -3 73 15 501 -4 06 98 208

Expenses Capitalised 76.900 -4 49 92 822 -3 68 70 808

TOTAL 36 95 98 135 31 07 44 427


Note 26.1:

a) Miscellaneous Expenses includes Stamp duty of Rs.71,65,700/- in connection with

enhancement of Authorised Capital (Rs. 50,01,000/-) and further issue of Shares

Rs. 21,64,700/-

b) Miscellaneous Expenses includes Sitting fees paid to Directors

2011-12 2010-11

21 000 19 500

Note 26.2 : Break up of Audit Fees

2011-12 2010-11

(a) Statutory Auditor

Statutory Audit Fee 6 75 000 6 75 000

Tax Audit Fee 1 25 000 1 25 000

Arrears 1 903 3 47 800

(b) Cost Audit Fee 75 000 75 000

Service Tax 1 08 150 1 57 150

Total 9 85 053 13 79 950

Note 26.3 :Vehicle running expenses includes insurance on vehicles. Other Assets of the

Corporation are not insured.


NOTE : 27 - FINANCE COSTS

(Amount in Rs.)

Sl.

No.Particulars

Account


Interest

Loan from REC 78.540 2 12 39 352 3 46 37 059

Rationalised REC

Loans

78.541 5 37 006 9 90 963

Loan from ICICI Ltd. 78.543 77 16 763

APDP works 78.544 83 59 826

Short term Loan

obtained from

Commercial Banks/

Financial institutions

78.563 53 88 02 444 65 79 55 841

Loans from UCO

Bank

78.564 57 78 71 787 47 52 26 615

Loans from Vijaya

Bank

78.569 128 76 38 025 63 45 20 244

Loans drawn from

South Indian Bank

78.573 5 91 18 920

Loans drawn from

PNB

78.574 21 91 77 310 20 19 01 837

Loans drawn from

OBC

78.575 6 99 11 749 6 52 73 030

Loans drawn from

Corporation Bank

78.576 20 06 48 622 17 28 41 604

Loans drawn from

Bank of Maharashtra

78.577 14 04 70 970 14 24 92 344

Loans drawn from

Bank of India

78.578 35 92 88 565 32 49 87 344

Loan from Bank of

Baroda

78.579 13 69 68 405 16 14 70 018

Loan from HDFC 78.582 1 84 692 4 26 169

Loan from PFC 78.584 138 09 16 002 188 73 46 160

Capital Liability 78.590 1 83 969

Loan from Indian

Bank

78.591 33 97 86 418 17 54 87 972


NOTE : 27 - FINANCE COSTS

(Amount in Rs.)

Sl.

No.Particulars

Account


Loan from Bank of

Rajasthan

78.592 71 23 288 9 99 90 696

Loan from Punjab

and Sindh Bank

78.593 8 60 25 281 82 69 684

Loan from Canara

Bank

78.594 54 98 13 701 4 94 65 444

Borrowings for

Working Capital

78.7 400 2 242

592 41 20 780 516 09 47 981

Other Borrowing

Costs

Guarantee

Commission

13 65 675 19 43 129

Other Charges for

raising Finance

78.820

To

78.890

1 66 553

15 32 228 19 43 129

Sub-Total 592 56 53 008 516 28 91 110

Less : Interest and

fi nance charges

capitalised

78.9 -95 74 36 387 -95 74 36 387 -87 38 76 118 -87 38 76 118

TOTAL 496 82 16 621 428 90 14 992


NOTE : 28 DEPRECIATION AND AMORTIZATION

(Amount in Rs.)

Sl.

No.Particulars

Account


Amortisation of Lease

Hold Assets77.110 8 47 289 8 47 289 9 25 641 9 25 641

Depreciation on

Buildings77.120 12 15 08 752 10 89 34 761

Depreciation on

Hydraulic Works77.130 2 06 34 061 1 67 22 456

Depreciation on Civil

Works77.140 1 12 73 952 1 03 59 678

Depreciation on Plant

and Machinery77.150 266 98 92 383 245 34 00 054

Depreciation on lines,

cable, network etc.,77.160 165 41 37 582 146 68 58 999

Depreciation on

Vehicles77.170 24 37 937 16 91 014

Depreciation on

furniture, fi xtures77.180 63 57 111 72 10 612

Depreciation on Offi ce

equipments77.190 13 70 940 12 57 662

Sub-total 448 76 12 718 406 64 35 236

Depreciation on

Intangible Assets77.801

Depreciation on

Released Assets and

Released Assets

issued to Repairs

77.151,

77.161,

77171,

77.181,

77.191

1 14 58 650 1 14 58 650 44 94 057 44 94 057

Sub-Total 449 99 18 657 407 18 54 934

Less : Depreciation

Capitalised77.900 - 45 91 662 - 19 65 644

TOTAL 449 53 26 995 406 98 89 290


NOTE : 29 OTHERS

(Amount in Rs.)

Sl.

No.Particulars

Account

Code

Current Year

2011-12Previous Year 2010-11

Asset

Decommissioning

Costs

77.5 26 19 596 25 05 972

Small & Low value

items Written off

77.600 5 50 788 2 00 899

Computer software 77.611 6 26 806 12 79 736

Losses relating to

Fixed Assets

77.7 15 60 171 18 30 417

Interest on delayed

compensation

78.101 42 51 709

Interest on

Pensioners/ Family

Pensioners benefi t /

Security Fund

78.854 17 34 789 10 31 648

Interest on belated

payment for power

purchase

80.108 108 21 21 370 108 21 21 370

Other Bank Charges 78.8 13 34 605 11 28 879

Material Cost Variance 79.110 32 60 220 - 435

Research &

Development

Expenses

79.2 2 49 132 3 11 349

Miscellaneous losses

and Write offs

79.5 &

79.7

8 68 07 985 1 11 52 401

T O T A L 118 51 17 171 110 15 62 236

Note 29.1 : Miscellaneous losses and Write offs includes :

1. Provision for Loss on obsolescence of Stores etc., in Stock 5 65 80 627 0

2. Sundry Debit balance written off 2 62 95 130 0


NOTE : 30 PRIOR PERIOD (CREDITS) / CHARGES

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeCurrent Year 2011-12

Previous Year

2010-11

A)Income relating to

previous years :

Excess provision for

Depreciation in prior

periods

65.600 1 50 02 758 5 05 01 086

Other Excess provision in

prior periods

65.800 59 53 942 77 291

Other Income relating to

prior periods

65.900 13 93 34 088 41 870

Sub - Total 16 02 90 788 5 06 20 247

B) Prior Period Expenses /

losses :

Operating Expenses of

previous years.

83.300 0 77957

Employee costs relating

to previous years

83.500 233651 292999

Depreciation under

provided in previous

years.

83.600 209117617 222316285

Administrative Expenses

- previous years.

83.820,

83.821

514650 9113

Other Expenses relating

to prior periods

83.850 1063000 227153

Sub - Total 210928918 222923507

Net Prior Period credits/

(charges) (A-B)

-5 06 38 130 -17 23 03 260


NOTE : 31 Exceptional Items

(Amount in Rs.)

Sl.

No.Particulars

Account

CodeCurrent Year 2011-12

Previous Year

2010-11

Gain on Sale of Land 62.400 5 06 22 898

TOTAL 5 06 22 898

NOTE : 32 Extraordinary Items

(Amount in Rs.)

Sl.

No.Particulars

Account

Code

Current Year

2011-12

Previous Year

2010-11

Extraordinary Credits

(including susidies against

loss on account of fl ood,

fi re,cyclone, etc.,)

63.200

TOTAL

Less Extraordinary debits

(Losses on account of

fl ood,cyclone,fi re etc.)

79.8

TOTAL

Net extraordinary items


NOTE : 33 Current Tax

(Amount in Rs.)

Sl.

No.Particulars

Account

Code

Current Year

2011-12

Previous Year

2010-11

Income Tax - Current year 81.100 1 74 18 570 31 79 781

Short Provision for Income

Tax - Previous Year83.810 27 52 719 2 01 71 289 44 76 140 76 55 921

TOTAL 2 01 71 289 76 55 921

NOTE: 34 DEFERRED TAX

(Amount in Rs.)

Sl.

No.Particulars Account Code

Current Year

2011-12

Previous Year

2010-11

Deferred Tax 81.201

TOTAL



2011-12

Note – 35 - Signifi cant Accounting Policies

35.1 Basis of preparation

Financial statements have been prepared under historical cost convention a.

on a going concern and accrual basis except for accounting on cash basis

for Grants and Subsidies from the Government; and comply materially with

the mandatory Accounting Standards issued by The Institute of Chartered

Accountants of India(ICAI), Generally Accepted Accounting Principles (GAAP),

Provisions of the Electricity Act, 2003 and Electricity (Supply) Annual Accounts

Rules(ESAAR), 1985 and relevant provisions of the Companies Act, 1956 to

the extent that they are not inconsistent with the provisions of Electricity Act,

2003 and Electricity (Supply) Annual Accounts Rules (ESAAR), 1985.

In the light of modifi cations to Schedule VI of Companies Act, 1956, with b.

effect from 01/04/2011, necessary changes have been incorporated in the

presentation of Balance Sheet, Profi t & loss Account and Notes on Accounts to

suit the requirement of Revised Schedule VI of Companies Act, 1956.

The Assets are classifi ed as Current Assets and Non-Current Assets and c.

Liabilities are classifi ed as Current Liabilities and Non-Current Liabilities

assuming the operating cycle of the corporation as duration of 12 months.

35.2 Revenue Recognition

Revenue from Transmission is recognized on accrual basis at the tariff as a.

notifi ed by Karnataka Electricity Regulatory Commission (KERC) from time to

time in its Multi Year Tariff (MYT) which is arrived on the basis of estimated


Revenue from Inter State Wheeling Charges is recognized on accrual basis b.

based on Regional Energy Account (REA) published by Southern Region

Power Committee (SRPC).

Revenue from Other Sources is also accounted on accrual basis. c.


35.3 Fixed Assets

Fixed assets are stated at cost including expenses related to acquisition, a.

construction and installation less accumulated depreciation and impairment

loss.

Establishment and other administration expenditure of Works Circles and Major b.

Works Divisions are allocated to the capital works handled by the respective

Divisions and form part of the cost of assets.

Assets put up by third parties, which vest in the Corporation under Regulation c.

for Condition of Supply of Electricity issued by the KERC, are incorporated in

the books at the cost estimate approved by the Corporation in the absence of

actual cost.

Land cost includes acquisition cost, including enhanced compensation paid as d.

awarded by the Courts, Compensation paid for afforestation and social forestry

for the project affected local people/families.

Expenditure on replacement of assets/part of asset with independent existence e.

are capitalised irrespective of the cost. The Original Cost and Accumulated

Depreciation thereon in respect of replaced assets are removed from

Accounts.

35.4 Depreciation

Depreciation is calculated on straight line method:a.

i At the rates notifi ed by CERC and adopted by KERC from time to time;

In respect of assets for which rates are not specifi ed in the Electricity Supply i

Act, 2003, at the rates specifi ed under Schedule XIV of the Companies Act,

1956.

Assets are depreciated to the extent of 90% of the cost of the asset and 10% is b.

retained as residual value.

For additions to assets from 1.4.2007, depreciation is provided from the beginning c.

of the month of addition. For additions to assets up to 31.3.2007, depreciation

has been provided from the year succeeding the year of addition.

Depreciation is charged upto the previous month in which asset is discarded/d.

dismantled.


Individual assets costing up to Rs. 500/- are fully depreciated in the year in e.

which they are put to use.

Where the carrying amount of any fi xed asset has undergone a change in f.

accordance with the policy for foreign currency transactions, depreciation on

the unamortized depreciable asset is spread over the useful life of the asset.

Depreciation on structures and other assets put up on leasehold properties are g.

depreciated at normal rates without linking it to the lease period.

Depreciation on released assets(Assets not in use) and released assets h.

issued for repairs has been charged at normal rates on Written Down Value of

Assets.

i. Depreciation on deposit contribution, consumer built and grant assets are

charged to revenue and not set off against capital reserve.

35.5 Accounting for Grants

Capital grants/grants related to specifi c assets are shown under Capital Reserve a)

and not reduced from the cost of the asset.

Revenue and untied grants are treated as income.b)

35.6 Reserves & Surplus

Capital Reserve

Deposit Contribution Works

Works executed/assets created out of contributions received from the third a)

parties vest in the Corporation under Regulation for Condition of Supply of

Electricity by the KERC, and they are incorporated as assets in the books at

the full value without reducing the contribution from the cost of the asset. Such

Contributions received from third parties towards works/assets are treated as

capital reserve.

35.7 Investments

Long term investments are carried at cost. Provision is made for diminution, a)

other than temporary, in the value of such investments.

Current investments are valued at lower of cost and fair market value.b)

35.8 Valuation of Inventories

Fast moving Stores and spares are valued at standard rates, determined by the a)

Corporation from time to time, in respect of items for which standard rates are


fi xed. Other items are valued at lower of cost, determined on weighted average

method, or net realizable value. The difference between actual cost and the

Standard rate is debited or credited to Material Cost Variance Account, as the

case may be. The balance under this account is transferred to Material Cost

Variance Reserve. The debit balance under Material Cost Variance Reserve is

debited to P&L Account.

35.9 Borrowing Costs

Borrowing costs attributable to the construction/acquisition of qualifying assets a)

are capitalized as a part of the cost of such assets. A qualifying asset is one that

necessarily takes substantial time to get ready for intended use.

Nonspecifi c borrowing costs for acquisition of qualifying assets are apportioned b)

to individual assets in the ratio of expenditure on assets to such borrowing

costs, quantum of borrowing costs being determined on the basis of weighted

average cost of the borrowings outstanding during the period. Other borrowing

costs are recognized in the period which they are incurred.

35.10 Employee Benefi ts

Expenditure towards defi ned benefi t scheme Gratuity and Pension which covers a)

employees who have joined service upto 31.03.2006 is provided on the basis

of Actuarial valuation using Projected Unit Credit Method (PUCM) in conformity

with Accounting Standard - 15. Actuarial gains or losses are recognized in the

Profi t and Loss Account.

Employees who have joined the Corporation on or after 01.04.2006 are covered b)

under “New Defi ned Contributory Pension Scheme (NDCPS)” and Company’s

Contribution at fi xed percentage of salary is ascertained and paid/provided

accordingly.

Long term benefi t – Leave Encashment is ascertained on the basis of Actuarial c)

valuation using Projected Unit Credit Method (PUCM) and provided at the end

of each Financial Year as required by Accounting Standard – 15. Actuarial gains

or losses are recognized in the Profi t and Loss Account.

35.11 Accounting for Taxes on Income

a) Provision for Current Tax is made in accordance with the provisions of the

Income Tax Act, 1961.


Deferred tax on account of timing difference between taxable and accounting b)

income is provided using the tax rates and tax laws enacted or substantially

enacted by the Balance Sheet date.

Deferred Tax is recognized, being the difference between taxable income and c)

accounting income that originate in one period and are capable of reversal in

one or more subsequent periods. Deferred tax assets are recognized, if there

is virtual certainty of realization of such assets.

35.12 Foreign Currency Transactions

Foreign currency transactions are initially recorded at the exchange rate a)

prevailing on the date of the transaction.

Foreign Currency monetary assets and liabilities are translated at the year end b)

exchange rates. Exchange differences related to liabilities for acquisition of

fi xed assets from outside India are adjusted in the carrying cost of assets.

Exchange differences arising on other transactions are recognized as income

or expenditure in the year in which it arises.

35.13 Impairment of Assets

Carrying amount of assets is reviewed at each balance sheet date to determine a)

whether there is any impairment.

An impairment loss is recognized, whenever the carrying amount of such assets b)

exceed the recoverable amount. Reversal of impairment loss is recognized as

income in the profi t and loss account.

35.14 Amortisation of Intangible Assets

Cost of acquisition of Custom built application software is recognized as an a)

intangible asset and amortised on straight line method over a period of three

years, commencing from the year of purchase.

35.15 Amortisation of lease assets

Lease payments made upfront in respect of leased assets are amortized in a)

equal installments over the lease period of the asset.

Annual lease rent payments are charged to revenue.b)

Cost of improvements made to leased assets is amortized in equal installments c)

over remaining lease period of the asset.



Note – 36 - Notes on Accounts

36.1 Contingent Liabilities and Commitments (to the extent not provided for) :

(Rs. In Crores)

Sl.

No.Particulars

Current

Year

Previous

Year

(i)Contingent Liabilities

Claims against the company not acknowledged as debts:

Claims in respect of Land Acquisition Cases 5.13 9.05

TDS in respect of the Assessment years 2005-06 to 2007-

08, disputed by the Company and the matter before the

Hon’ble High Court of Karnataka

4.54 4.54

Price Variation Claims from Contractors / Suppliers 4.12

Others 18.38 18.46

(ii) Commitments

Estimated Amount of contracts remaining to be executed

on Capital Account and not provided for

4748.00 3631.39

36.2 Value of Imports calculated on CIF basis:

(Rs. In Crores)

Sl.

No.Particulars

Current

Year

Previous

Year

i Raw materials, spare parts and capital goods NIL NIL

ii Capital goods NIL NIL

36.3 Expenditure in foreign currency:

Sl.

No.Particulars

Current

Year

Previous

Year

i Expenditure reimbursed on foreign travel Rs.19,13,034/- Rs. 14,95,982/-


36.4 Value of indigenous and imported stores Spares and components consumed:

Sl. No. Particulars Current Year Previous Year

i. Indigenous Materials Not ascertainable Not ascertainable

ii Imported Materials Not ascertainable Not ascertainable

36.5 Quantitative details of Transmission and Loss of Energy:

(In MUs)

Sl.

No.Particulars

Current Year

(Provisional)

Previous

Year

1 Total Energy handled 56890.574 50516.39

2 Total Energy Transmitted 56890.574 50516.39

3 Transmission Loss in respect of Energy Transmitted 2580.371 2219.34

4Net Transmission to ESCOMS & Hukkeri society

during the year (2-3)54310.203 48297.13

5Total units accounted as Transmitted to ESCOMS &

Hukkeri society during the year 54310.203 48297.13

6 Total Transmission loss 2580.371 2219.34

7Percentage of Transmission Loss on handled Energy

(6/1 X 100)4.536% 4.39%

36.6 Confi rmation of balances

Confi rmation of balances have been obtained only for borrowings from Banks a)

and Financial Institutions and Bank balances.

Balance with ESCOMSb)

Receivables and Payables in the names of ESCOMs (other than relating to

Sundry Debtors for Transmission of Power), as detailed below, are subject to

reconciliation and confi rmation:

Name of the ESCOM Receivable Payable

BESCOM 6,98,63,099 42,62,11,790

MESCOM 10,45,19,155 10,38,13,158

HESCOM 15,32,59,656 13,11,07,778

GESCOM 27,63,48,571 16,33,344

CESCOM 5,39,43,059 3,28,40,556


36.7 Segment Reporting

As the Corporation is engaged only in the business of power transmission within the

state of Karnataka, there are no reportable segments as per AS-17 on “Segment

Reporting”.

36.8 Property Tax

Provision has not been made towards Property Tax including vacant lands and same

shall be accounted, as and when payment is made. Impact on fi nancial statements is

not ascertainable.

36.9 Related party Disclosures

Related Party Transactions:

Key Managerial Personnel – As per Notifi cation issued by GoK.

Sl.No. Name Designation

1 Smt. G. Latha Krishna Rao (up to 18/05/2011) Managing Director

2 Sri P.Ravikumar (from 18/05/2011) Managing Director

3 Dr. Aditi Raja Director (Finance)

4 Sri S. Pratap Kumar (up to 19/01/2012) Director (Transmission)

5 Sri S. Sumanth (from 19/01/2012) Director (Transmission)

6 Sri V. Yashwanth (up to 08/01/2012) Director (Admn & H R)

7 Dr. Muddumohan (From 30/01/2012) Director (Admn & H R)

Managerial remuneration paid or payable to Key Managerial Personnel:

(Amount in Rupees)

Sl. No. Particulars Current Year Previous Year

i. Salary and Allowance 49,90,470 40,65,186

ii Exgratia 11,754 14,000

iii Medical Expenses 25,619 3,66,089

ivPension & Leave Contribution remitted to

Government3,73,197 3,67,824

vPension & gratuity Contribution payable to

P&G Trust3,68,633 3,36,208

vi Leave Encashment 2,67,818 -

TOTAL 60,37,491 51,49,307


36.10 Earning Per Share (EPS)

Sl.

No.Particulars

Current Year

(2011-12)

Previous Year

(2010-11)

i. Basic

Net Profi t for the yearA.

Weighted Average Number of Equity Shares B.

outstanding during the Year

EPSC.

7,66,59,142

77,90,397

9.84

86,92,568

69,03,225

1.26

ii Diluted *

Net Profi t for the yearA.

Weighted Average Number of Equity Shares B.

outstanding during the Year

EPSC.

7,66,59,142

1,58,89,837

4.82

86,92,568

1,50,62,138

0.58

* After considering Potential Equity Share to be issued against Equity Infusion (Note 3).

36.11 General

Paisa has been rounded off to the nearest rupee.a)

Previous year fi gures have been regrouped / recast wherever necessary for purposes b)

of Comparability.

Current Year’s Figures of Assets and liabilities have been grouped as c)

Non- Current and Current as required by Revised Schedule VI effective from 01.04.2011.

In certain cases, as required information was not available in respect of previous years,

the corresponding fi gures for the previous year, may not be strictly comparable.

Signature to Note 1 to 36

Sd/

(C.SREENIVASAN)

Financial Adviser(A&R)

Sd/

(R.SRIDHARA)

Company Secretary

Sd/

(ADITI RAJA)

Director (Finance)

Sd/

(S.SELVAKUMAR)

Managing Director


For RAO & SWAMI





KARNATAKA POWER TRANSMISSION CORPORATION LIMITED

Cash Flow Statement Annexed to the Balance Sheet for the period

April 2011 - March 2012

Particulars Amount in Rs Amount in Rs

A CASH FLOW FROM OPERATING ACTIVITIES:

Net Profi t before tax as per Profi t & Loss Account 8 70 59 081 Adjustments for :

Depreciation (net) 449 53 26 995

Finance and Other Charges 496 82 16 621

Changes in Material cost variance Reserves - 6 74 593

Other Income -16 82 54 342

Capital Profi t -5 06 22 898

Contributions, grants & subsidies towards cost of capital

assets67 20 38 287

Operating Profi t before working capital changes 933 10 50 863

Adjustments for :

Changes in Stores & spares -2 11 95 763

Assets not in use

Changes in Sundry Debtors 41 85 16 276 Changes in Loans & Advances 73 37 95 507 Changes in Other Receivables 272 38 01 863

Changes in Current liabilities & provisions -445 67 02 992 Cash generated from Operations 872 92 65 753

Income Tax -1 03 99 939

Net cash infl ow from Operating Activities 871 88 65 814

B CASH FLOW FROM INVESTMENT ACTIVITIES

Changes in Fixed Assets (Net of Assets sales and losses)* -876 04 01 802

Changes in Capital Work in Progress -17 80 19 472

Other Income 16 82 54 342

Net cash infl ow from Investment Activities -877 01 66 932

C CASH FLOW FROM FINANCING ACTIVITIES:

Changes in Share Capital/ Equity Infusion 100 00 00 000

Grant Received 2 58 00 000

Changes in Secured Loans 11 81 72 540

Changes in Unsecured Loans 168 32 38 834

Changes in Capital Reserves 5 06 22 898 Finance and other Charges -496 82 16 621

Net Cash used in fi nancing activities -214 10 05 247 Net Change in Cash and Cash equivalents (A+B+C) -219 23 06 365 Add:Opening Cash and Cash Equivalents as on 1.4.2011 393 04 24 985

Closing Cash and Cash Equivalents as on 31.3.2012 173 81 18 620

Sd/

(C.SREENIVASAN)

Financial Adviser(A&R)

Sd/

(R.SRIDHARA)

Company Secretary

Sd/

(ADITI RAJA)

Director (Finance)

Sd/

(S.SELVAKUMAR)

Managing Director


For RAO & SWAMI





STATEMENT SHOWING THE DETAILS OF BORROWING FOR

THE FINANCIAL YEAR 2011-12

A/c

CodeName of the Institution

OB as on

01/04/2011Receipts Repayments

CB as on

31/03/2012

1 2 3 4 5 6

53.300 REC 166344547 19145721 147198826

53.324 Short term Loans 5220000000 22000000000 20220000000 7000000000

53.325 UCO Bank 5030000000 5030000000

53.330 Vijaya Bank 10254173003 2000000000 358142000 11896031003

53.336 APDRP-REC 65829525 10971588 54857937

53.900 HDFC 2163941 1905268 258673

53.960 PFC 12696028126 1595404059 11100624067

53.302 REC-Rationalised loans 7937339 4244154 3693185

53.346 Punjab National Bank 2242500000 345000000 1897500000

53.347 Oriental Bank of Commerce 675000000 100000000 575000000

53.353 Corporation Bank 2225000000 100000000 2125000000

53.354 Bank of Maharashtra 1450000000 200000000 1250000000

53.355 Bank of India 4110400000 444800000 3665600000

53.356 Bank of Baroda 1500000002 333333332 1166666670

53.357 Indian Bank 3000000000 100000000 2900000000

53.358 Bank of Rajasthan 1000000000 1000000000

53.359 Punjab & Sind Bank 350000000 1650000000 2000000000

53.360 Canara Bank 5000000000 5000000000

54.200 State Government Loans 71288661 5940722 65347939

TOTAL 55066665144 25650000000 24838886844 55877778300


STATEMENT SHOWING SECTOR WISE CAPITAL EXPENDITURE FOR 2011-12

WITH AND WITHOUT RELEASED ASSETS ISSUED TO CAPITAL WORKS

CWIP (Amount in Rupees)

Account

Code

Brief Description of the

Project

Capital

Expenditure

Allocation

(Sectorwise)

(In Crores)

Capital

Expenditure

during the

year 2011-12

Released

Assets

issued

to works

during

2011-12

Net Capital

Expenditure for

the year 2011-

12 (deducting

Released

Assets issued

to Works)

TRANSMISSION LINES AND SUB STATIONS WITH ATTACHED CIVIL WORKS

14.110 Transmission lines (GP) 1716862541.44 18273378.00 1698589163.44

14.113 Transmission lines (PFC) 1180517367.33 7843.00 1180509524.33

14.116Transmission lines

(Non-Plan) 31474724.50 .00 31474724.50

14.120 Step Down Station-(GP) 2663343131.50 70396320.47 2592946811.03

14.123 Step Down Station-(PFC) 463376504.64 188273.98 463188230.66

14.124 Step Down Station-(ADB) 895870258.00 .00 895870258.00

14.126Step Down Station-

(Non-Plan) 176591081.75 11096014.06 165495067.69

Sub Total 865.36 7128035609.16 99961829.51 7028073779.65

LOAD DESPATCH AND

COMMUNICATION

14.130Load Despatch &

Communication 94569608.00 94569608.00

Sub Total 92.00 94569608.00 94569608.00

EXTENSION AND

IMPROVEMENTS

14.150

Transmission lines+

Transformers etc-

Improvements (GP)

504758773.82 36340305.94 468418467.88

14.151

Transmission lines+

Transformers etc-

Improvements (Non Plan)

605503.00 605503.00

Sub Total 103.51 505364276.82 36340305.94 469023970.88


CWIP (Amount in Rupees)

Account

Code

Brief Description of the

Project

Capital

Expenditure

Allocation

(Sectorwise)

(In Crores)

Capital

Expenditure

during the

year 2011-12

Released

Assets

issued

to works

during

2011-12

Net Capital

Expenditure for

the year 2011-

12 (deducting

Released

Assets issued

to Works)PROVIDING NEW TRANSFORMERS IN PLACE OF FAULTY/FAILED DISTRIBUTION

TRANSFORMER

14.170

Replacement of Distribution

transformer with similar

capacities

24660027.82 16633252.57 8026775.25

Sub Total 40.46 24660027.82 16633252.57 8026775.25

RURAL ELECTRIFICATION

14.200

REC Plan Schemes-IP:IE

Scheme of Driniking Water

Supply

2556602284.19 .00 2556602284.19

Sub Total 256.66 2556602284.19 .00 2556602284.19

OTHERS

14.502 Buildings 190792999.00 15397359.00 175395640.00

14.607 Vehicles 27364502.00 .00 27364502.00

14.708 Furniture & Fixtures 965959.53 .00 965959.53

14.809 Offi ce Equipement 19194451.72 38748.50 19155703.22

14.810 Tools & Tackles 7484174.58 3980.00 7480194.58

14.811Mobile Phones/Cellular

Phones 927494.50 927494.50

14.910Survey and Investigation

expenses on projects 2570727.00 .00 2570727.00

Sub Total 64.14 249300308.33 15440087.50 233860220.83

TOTAL-A 1422.13 10558532114.32 168375475.52 10390156638.80

Less: Amount initially

accounted by one

accounting unit as Capital

Exprnditure and on

transferred to another

Accounting Unit, same

accounted as Capital

Expenditure

941485636.26 941485636.26

TOTAL-B 94 14 85 636 94 14 85 636

NET CAPITAL

EXPENDITURE 10558532114.32 168375475.52 9448671002.54


DCB STATEMENT FOR THE YEAR 2011-12

(Energy supplied in Mu's & Amount in Rupees)

ESCOM

Energy

Supplied

(in Mu's)

Opening

Balance

Transmission

charges

(Current year

Demand)

Grand Total,

(OB+Current

year)

CollectionClosing

Balance

BESCOM 24613.93 227544368 7467519072 7695063440 7497811128 197252312

MESCOM 4053.35 168049810 1289594544 1457644354 1279882719 177761635

HESCOM 9732.78 1073499604 2903685556 3977185160 3276594703 700590457

GESCOM 6940.43 239826867 2065410960 2305237827 1836413349 468824478

CESCO 5570.93 626017125 1654617312 2280634437 1898964033 381670404

Hukkeri 211.74 227354 44830370 45057724 45057724 0

INTER STATE 2638440 2638440 2638440

Delayed payment

charges 26295130 26295130 26295130 0

Grand Total 51123.15 2364098698 15425657814 17789756512 15861018786 1928737726


******

Govt. Press, Vikasa Soudha Unit, Bangalore. W.D. 57 / P5

karnataka power transmission corporation limited · 2020. 2. 19. · karnataka power transmission...

Documents