the durgapur projects limited

THE DURGAPUR PROJECTS LIMITED(A GOVERNMENT OF WEST BENGAL ENTERPRISE)

CIN U40102WB1961SGC025250ADMINISTRATIVE BUILDING,P.O. DURGAPUR-713201.

1st April,2019 to 31st March 2020

Chairman : Shri Sunil Kumar Gupta, I.A.S., [ w.e.f. 14.09.2017 to 06.12.2019]

: Shri Suresh Kumar Sepuri, IAS [w.e.f 20.01.2020]

Managing Director : Shri Ashis Saha [w.e.f. 01.09.2018 expired on 19.09.2020]

: Shri Goutam Biswas, Director [w.e.f. 01.11.2018 and appointed as MD w.e.f. 06.10.2020]

Director : Shri Rajesh Pandey, I.A.S. [w.e.f. 29.01.2016 to 28.06.2019]

: Shri Santanu Basu, IAS, Director {w.e.f 09.07.2019]

: Dr. A. N. Biswas, IAS, Director [w.e.f 21.06.2017 to 09.04.2020]

: Smt. Saswati Banerjee, I.A.S. (Retd) Independent Director [w.e.f. 21.06.2017]

: Shri Pranab Kumar Das Sharma, Independent Director [w.e.f. 06.05.2017]

: Shri Srikumar Banerjee Independent Director [w.e.f. 01.06.2019]

: Shri Saurabh Majumdar, Director [w.e.f. 25.06.2020]

Government Representative : Dr. P. B. Salim, IAS & CMD, WBPDCL [w.e.f 09.07.2019]

Statutory Auditor : M/S M. C. Bhandari & Co. (CA0049)

4, Synagogue Street Suit No. 205 2nd Floor Behind Central Bank of India, Kolkata - 700001

Cost Auditor : DGM & Associates

64, B. B. Ganguly Street (2nd Floor) Kolkata - 700012

Secretarial Auditor : D. Dutt & Co.

Swastic Centre 3rd Floor, Room No. 3E, P-8 Chowringhee Square, Kolkata - 700069

Bankers :UNITED BANK OF INDIA, Rajdanga Branch, KolkataUNITED BANK OF INDIA, Chowringhee Branch, KolkataSTATE BANK OF INDIA, station Road, DurgapurAXIX BANK, DurgapurINDIAN BANK, DurgapurTHE WEST BENGAL STATE CO OPERATIVE BANK, Kolkata

Registered Office : Administrative Building, P.O.-Durgapur, Dist. - Paschim Bardhaman, Pin - 713201Kolkata Office : 1593 Rajdanga Main Road, Kasba, Kolkata - 700107

UNITED BANK OF INDIA, Coke Oven Branch, Durgapur

INDEX

1. NOTICE 01

2. EXPLANATORY STATEMENT 02

3. DIRECTOR`S REPORT 03-26

4. COMMENTS OF CAGI UNDER SECTION 143(6) COMPANIES ACT, 2013 ON THE ACCOUNTS OF THE COMPANY AND REPLIES THE COMMENTS THE COMPANY 27-28

5. AUDITORS` REPORT AND COMPANY`S REPLY TO THE AUDITORS` REPORT 29-58

6. BALANCE SHEET 59

7. STATEMENT OF PROFIT & LOSS 60

8. CASH FLOW STATEMENT 61

9. NOTES FORMING PART OF FINANCIAL STATEMENTS 62-91

10. PROXY FORM 92-93

THE DURGAPUR PROJECTS LIMITED(A Government of West Bengal Enterprise)Registered Office: Administrative Building

P.O. Durgapur-713201, Dist.-Burdwan

thNotice is hereby given that the 59 Annual General Meeting of the SHAREHOLDERS of The Durgapur Projects thLimited will be held on Wednesday, 30 of December, 2020 at 3.00 P.M. at the Registered Office of the Company at

the Administrative Building, P.O. Durgapur-713201, Dist.- Paschim Bardhaman to transact the following business :

i) To receive, consider and adopt the Report of the Board of Directors on the workings of the company for stthe financial year ended on 31 March, 2020.

stii) To receive, consider and adopt the audited Balance Sheet of the Company as at 31 March, 2020 and the

Profit & Loss Accounts for the year ended on that date along with the Statutory Auditors' Report and the

Supplementary Comments of the Comptroller and Auditor General of India under section 139(5) of the

Companies Act, 2013 and the replies thereto.

iii) To approve the retirement/appointment of the Directors of the Company by the Hon'ble Governor of West thBengal from the Office on conclusion of the 58 Annual General Meeting of the Company.

iv) To note the reappointment of M/s Bhandari & Co, Chartered Accountants as the Statutory Auditor of the

company for the financial year 2020-21 appointed by the Comptroller & Auditor General of India at a

remuneration of Rs.3,50,000/-.

i) To consider the following resolution and to pass the same as an Ordinary Resolution, if thought fit, with or

without modification:

“RESOLVED THAT pursuant to Section 148(3) of the Companies Act, 2013 read with Rule 14 of the

Companies (Audit and Auditors ) Rules, 2014 as amended approval be and is hereby accorded to the

appointment of M/s. DGM & Associates, Cost Accountants, Kolkata-12 as Cost Auditor for the year 2020-

21 for Power Station only for a remuneration of Rs. 42,000/- only, all inclusive plus GST, as applicable, as

recommended by the Audit Committee of Directors in its meeting held on 06.10.2020.

BY ORDER OF THE BOARD OF DIRECTORS

Place : Durgapur

Date: 10.12.2020

( Goutam Biswas )

Managing Director

The Durgapur Projects Ltd.

.......................................................................................................................................................................Note : 1. A Member of the Company entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and

vote on a poll instead of himself and the proxy need not be a member of the Company. Proxies in order to be effective must be deposited at the Registered Office of the Company by not less than forty eight hours before the time for holding the meeting.

2. The Explanatory Statement relating to Special Business mentioned in the Notice as required by the Section

102(1) of the Companies Act, 2013 is annexed to the Notice.

N O T I C E

I. AS ORDINARY BUSINESS :

II AS SPECIAL BUSINESS:

1

EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1)

OF THE COMPANIES ACT, 2013 FOR

ITEM NO. 1 UNDER THE HEAD SPECIAL BUSINESS

Section 148 (3) of the Companies Act, 2013 states that the Cost Audit shall be conducted by a

Cost Accountant in Practice who shall be appointed by the Board on such remuneration as may be

determined by the members in such manner as may be prescribed. Rule 14(a) (ii) of the Companies

(Audit and Auditors) Rules, 2014 as amended states that the remuneration recommended by the

Audit Committee shall be considered and approved by the Board of Directors and ratified

subsequently by the shareholders.

th The Audit Committee of Directors in its 45 meeting held on 06.10.2020 recommended the

proposal of re-appointment of M/s DGM & Associates, Cost Accountants having its Office at 64,

ndB.B.Ganguly Street, 2 Floor, Kolkata-700012 as Cost Auditor of the company for the financial year

2020-21 at a remuneration of Rs. 42,000/- all inclusive plus GST, as applicable, for approval of the

Board.

ndThe said recommendation was approved by the Board in its 622 meeting held on 15.10.2020.

Now, the said re-engagement of M/s DGM & Associates, Cost Accountants as the Cost Auditor of

the Company for the financial year 2020-21 is placed before the shareholders for their consent and

ratification.

The Board hereby recommends the said resolution for the approval of the shareholders of the

company as an Ordinary Resolution.

None of the Directors and Key Managerial Personnel and their relatives are interested or

concerned in the said resolution except as a Director and KMP of the Company

2

THE DURGAPUR PROJECTS LIMITED

DIRECTORS' REPORT FOR THE YEAR 2019-20

1.0: Financial Performance:

1.1: Unit-wise Profit/Loss:

2019-20 2018-19

To The Shareholders, The Durgapur Projects Ltd.

Gentlemen,

thThe 59 Annual Report of the Board of Directors on the performance of the Company together with audited Financial Statements for the year ended on 31st March, 2020, Report of the Statutory Auditors on those Financial Statements, other Statutory disclosures and Reports are placed for your perusal.

The financial year 2019-20 was ended with a net loss of Rs 392.24 Crore as against a net loss of Rs. 164.30

Crore incurred in the previous year. The profit or loss with and without the impact of Interest and Depreciation for

the year under report and those of the previous year are furnished below:

Profit /(Loss) before interest and depreciation 6778.39 31458.35

Less : Interest 33079.09 33704.03

Profit / (Loss) after interest but before depreciation (26300.7) (2245.68)

Less : Depreciation/Impairment and amortization 12922.89 14184.37

Net Profit / (Loss ) (39223.59) (16430.04)

N.B.: Figures within bracket indicate loss or negative figures.

The Durgapur Projects Limited as a Power Generating Company has tried to supply power to its only

consumer WBSEDCL unhindered. Although COGP Plant is under suspension since 03.07.2015 and

subsequently closed down as per decision of the State Cabinet, unit wise segmental Accounts have been

compiled as the related manpower are still being carried pending their redeployment in Govt.

Departments, as contemplated in the order for restructuring of the Company. Accordingly, as per

Company's Accounting Policy followed consistently, separate Financial Statements comprising Profit &

Loss Statement and Balance Sheet have been prepared for the business segments for the year 2019-20

as before and the net financial results for the years 2019-20 and 2018-19 are furnished below:

Name of Unit Net Profit / (Loss) (Rs in lakhs) Net Profit / (Loss) (Rs in lakhs)

Coke Oven Group of Plants (2348.82) (4568.46)

Power Plant (36399.53) (10124.29)

Water Works (475.23) (1737.29)

Total (39223.59) (16430.04)

N.B.: Figures within bracket indicate loss or negative figures.

Particulars 2019 – 20 (Rs. in lakhs) (Rs. in lakhs)

2018 – 19

3

1.2: Salient points having impact on the financial results of the year 2019-20:

2.0: Restructuring of DPL:

3.0: Share Capital & Plan Outlay:

3.1: Share Capital:

3.2: Plan Outlay:

3.3: Non Plan assistance:

3.4: Dividend :

3.5: Employee Stock Options:

` i) The financial results of the Company for the year under report has been worked out after taking into

consideration the effect of the anticipated income the Company likely to receive through regulatory

assets by way of additional Tariff that may be allowed for realization as arrears from the consumers

against the Annual Performance Review (APR) Petition for the year 2018-19. Thus the regulatory

assets as of 31.03.2020 are for the years from 2014-15 to 2018-19 for which the APR Orders have not

been issued by WBERC till preparation of the Accounts for the year under report. The anticipated

income on such regulatory assets for the year 2018-19 has been conservatively self-assessed like

previous years although the APR petition for the said year of 2018-19 is yet to be submitted, to be

considered as being for Discom for 9 months and Genco for 3 months.

ii) The year under review has seen relatively higher losses over last year mainly due to lower capacity

utilization for inadequacy of working capital availability, higher incidence of employee benefit cost on

account of higher load of actuarial gratuity and leave salaries as a result of implementation of ROPA -

2020 as well as related effect of restructuring exercise involving transfer of Distribution and

Transmission activities in the previous year.

Relevant information in respect of each business segment has been given in the “ Management

Discussion and Analysis” which forms part of this Report as Annexure-I.

Pursuant to the decision of the Government of West Bengal for restructuring of The Durgapur Projects Limited

(DPL) vide its Notification No.319-PO/O/C-IV/1E-60/13 (Part-VA) dated 08.12.2017, DPL is operating as a

Power Generating Company only w.e.f 01.01.2019. The Transmission and Distribution activities have been

transferred to WBSETCL and WBSEDCL and Slump Transaction Agreements with the aforesaid Companies

have been executed on 11.04.2019 and 30.09.2019 respectively. The transfer of share of DPL currently owned

by Hon'ble Governor of West Bengal to WBPDCL is, however, yet to be completed.

The Authorized Share Capital of the Company as on 31.03.2020 was Rs.3000.00 Crore out

of which Rs.1815.29.00 Crore has been issued and paid-up. The entire share capital is held by the Hon'ble

Governor of West Bengal and six other shareholders hold one share of Rs. 1000.00 each as Nominees of the

Government of West Bengal.

The Government of West Bengal has not allocated any plan outlay during the year 2019-20 as

equity.

The State Government has not provided any financial assistance during the period

under review as Non Plan assistance.

No dividend has been declared by the Company. Further, no dividend was received by the

Company during the year on investments in Shares made by the Company.

The Company had not declared any scheme for Employee Stock Option

pursuant to the relevant section of the Companies Act, 2013 and related Rules of the Companies (Share Capital

& Debenture Rules, 2014) as amended.

4

4.0: Deposits & Loans taken and Investments made:

4.1: Deposits:

4.2: Loans:

4.2.1 The Company had taken loan from Government of West Bengal, M/s Power Finance Corporation Ltd (PFCL)

4.2.2: Grant:

4.3: Investments:

4.3.1.

4.3.2.

4.3.3.

5.0: Management Discussion and Analysis:

6.0: Pollution Control:

6.1: Power Plant:

6.1.1: Decommissioning of Old Units:

The Company did not take any deposit.

and Central Electricity Authority (CEA). The major part of the loan was taken from M/s. Power Finance Corporation

Ltd for 300 MW Unit No.7, 250 MW Unit No.8 and Augmentation of T&D Net Work. However, all the loans from

PFCL were effectively subsumed into a single Term Loan of Rs. 2660.00 Crore on 15 February 2018, later

increased to Rs. 2690 Crores out of a sanction of Rs. 2700 Crores for the purpose. The outstanding State

Government Loan as on 31.3.2020 was about Rs 391.69 Crore with accumulated interest of about Rs.421.90

Crore. The loan and outstanding interest from CEA stood at Rs.11.81 Crore and Rs.47.27 Crore respectively.

An amount of Rs. 1.34 Crores was received as grant from Govt. of West Bengal during the year for

the purpose of erecting fences in certain parcels of land in Piyala and Township areas for preventing

encroachment.

The Company had invested Rs.30.15 lakhs in 8,30,000 shares of Rs. 10/- each including bonus shares in

M/s. Bengal EMTA Coal Mines Ltd., a Joint Venture Company of DPL, WBPDCL and EMTA Coal Ltd formed for

the purpose of operation of captive coal mines for onward supply of coal to the power stations of WBPDCL and

DPL. The share of DPL was 6% of the paid up equity capital of that Company. The said investment has been shown

at “Nil” value after considering diminution of entire value, being of unquoted shares in the current year as well as

considering the fact that the very purpose of forming the said Joint Venture Company has ceased to exist

consequent upon de-allocation of the coal blocks by the Hon'ble Supreme Court of India with effect from

31.03.2015 which included the coal blocks mined by M/s. Bengal Emta Coal Mine Ltd. It is to be noted that all the

Directors representing the State Government, WBPDCL and DPL resigned from the directorship of the said

Company during August to September, 2015.

The Company holds equity in Share Capital of Rs.7,500.00 in the Durgapur Projects Employees

Multipurpose Co-Operative Society Ltd., constituted by its employees.

The Company did not make any investment or had not given any Loan and Guarantees to any company

pursuant to the provisions of Section 186 of the Companies Act, 2013.

The Annual Report also contains a separate section on

Management Discussion and Analysis which forms part of this Report as an Annexure-I.

In order to comply with the environmental laws and rules, the company undertook actions

at different areas of Power Plant as enumerated herein under:

Following Pollution control measures were taken for Power Station:

th The Board in its 615 meeting held on 05.10.2018 accorded its in

principle approval for decommissioning of Unit No.6 of 110 MW capacity subject to intimation to CEA and WBERC.

thThe State Government in its 54 Cabinet meeting held on 01.02.2019 decided to decommission and dismantle

5

Unit No.6. W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in favour of m-junction Services Ltd has

been issued w.r.t valuation of COGP Plants. The duration of the contract is 18 months from the date of Work Order

starting from valuation to its ultimate disposal. M/s m-junction has submitted a fresh evaluation report in sealed

envelope considering our request for revision. Accordingly, a high level Committee has been constituted by the

Managing Director which would open the sealed envelopes and recommendation of the Committee and its

subsequent endorsement by the Managing Director would be placed before the Board in its next meeting for

obtaining final acceptance.

Emissions from the stacks of Units no 7 & 8 are being monitored on regular basis by The

West Bengal Pollution Control Board as well as its recognized Laboratories and results of which are quite

satisfactory and generally comply with the specified norms.

Water sprinkle system has been adopted in Coal Crusher as well as in storage area of coal

for controlling the fugitive dust. DPL has also made arrangement for sprinkling of water in the Ash Handling area

and its adjacent road for arresting the fugitive dust emission. Job of covering Ash Bed with soil has already been

completed and had installed Water Sprinkling System at dust prone areas. Further action has been taken by Coal

Handling Plant (CHP) of DPPS for renovation of Dust Extraction System of Coal Crusher House.

Installation and commissioning of Continuous

Ambient Air Quality Monitoring System has been done by M/s Environment SA. This system is successfully

commissioned in the month of June, 2018 and the same is functioning round the clock.

Water is used for Power Plant as well as drinking purpose which is obtained from the river Damodar

after requisite treatment in DPL's captive water treatment plant. DPL have also undertaken a project for recycling

of water from the Ash pond and arranged for preliminary treatment for reuse.

Construction jobs in Plant as well as Colony area are being carried out with

Fly Ash products like Bricks and Blocks etc which promotes the use of Fly Ash products. Dry Fly Ash is being

supplied to cement industries others after supplying to Fly Ash Brick Fields free of cost as per their

requirement. A considerable quantity of ash has been utilized in development of low land also.

Installation and commissioning of Effluent Quality Monitoring

System has been done by M/s Axis Nano Technology Private Limited and connected with CPCB portal. This

system is successfully commissioned in the month of February, 2020 and the same is functioning round the clock.

In accordance with the prescribed regulations of WBERC, a

“Consumer Grievance Cell” has been constituted comprising Officers of appropriate level and the said Cell is

functioning for redressal of grievances of the consumers. Further, no Grievance was received during the year.

However, the said functions have gone over to WBSEDCL after 01.01.2019 after transfer of distribution activities

to them.

The Company complies with the requirements of Right to Information

Act, 2005. The names of State Public Information Officer (SPIO), DPL and Assistant Public Information Officers

(APIO) for various specified areas of the Company have been notified. The information sought for under the said

6.1.2 Stack & Emission:

6.1.3 Fugitive Dust:

6.1.4: Continuous Ambient Air Quality Monitoring System:

6.2: Water:

6.3: Disposal and Utilization of Ash:

6.4: Effluent Quality Monitoring System :

7.0: Statutory & Regulatory Compliance and Disclosures:

7.1: Redressal of Consumer Grievance :

7.2: Right to Information Act (RTI), 2005:

and

6

Act is being furnished in prescribed manner. During the period from January, 2019 to December, 2019, a total of 19

letters asking for various information were received and the replies to the same were forwarded in all the cases

barring 03, cases of which were disposed of as per order of the State Chief Information Commissioner.

The Company as provider of essential services like power and water has certain degree of security threats and

accordingly security arrangements are made to protect plants, offices and other establishments of the Company

spread over a large area in Durgapur and other locations. The strength of available permanent Officers and Staff

of Security Department is as under out of 424 sanctioned strength of 1972:

` a) CSO – 01

b) Manager (Security) – Nil

c) Inspector – 04

d) Sub Inspectors – 01(Contractual)

e) Asst.Sub Inspectors – 05(including 02 contractual)

f) Havildars – 00

g) Security Guards – 00

Total – 11(including 03 contractual)

However, we are engaging 230 heads of Security Personnel from Ex-Servicemen/Ex-Paramilitary category to

guard our several installations through e-tendering basis. Additional 58 heads of un-skilled casual labourers were

engaged in Security Department with the approval of the Board of Directors to assist the Departmental Security

staff and 36 nos. of personnel from Police/SAP/JC.

Consequent upon long suspension of the operation of the entire Coke Oven and existing Power Station area

(Unit1 to 6) and withdrawal of operation staff from there, Security Department is facing uphill task of guarding this

entire idle plants with its scanty manpower. Due to the deficiency of departmental staff and Officers, the 10 nos. of

DBBL Guns and 02 nos. of Revolvers available with the Security Department cannot be properly utilized. There are

immediate needs for induction of some Officer with requisite backgrounds as per the companies laid down policy in

Security Department for managing the security affairs of the company.

a) One employee namely Shri Zalim Majhi (Employee No.10498), designation – SOA of Coke Oven was

apprehended at Main Gate while he was taking out Steel materials and handed over to the Police for

taking appropriate legal action. A case no.295 dated 07.10.2019 under Section 41 CRPC and 379/411

IPC has been started against him as well as separate domestic enquiry has also been initiated against

him.

b) There was a report of theft (i) from Power Plant Store and a complaint to this effect lodged with local

thPolice Station case No.40/2018 dated 20.03.2018 u/s 379 IPC and (ii) 8 Unit cable trench vide case

no.206/19 dated 23.11.2019 for which Section 379/411 IPC have been started.

c) Apart from the above, it has been observed that there are sporadic movement of miscreants in the idle

plants, the operation of which remain suspended since long period of time. Security department

nabbed few miscreants of such area on different times and handed them over to the Police Authorities

for taking legal action

7.3: Report on the Security Department:

7.3.1 Crime:

7

8.0: Conservation of Energy / Technology, Absorption:

8.1: Energy Conservation measures:

8.2: Technology Absorption:

8.3: Particulars of Employees' u/s 134 of the Companies Act, 2013:

8.4: Particulars of Contracts or Arrangements with Related Parties:

8.5: Foreign Exchange Earnings and Outgo:

9.0: Directors' Responsibility Statement:

As energy conservation measures, certain actions are required to be

carried out by the designated consumers as per relevant provisions of the Energy Conservation Act, 2001. The

actions thus required have been termed as “Perform, Achieve and Trade”. DPL is required to comply with this

requirement. An Energy Auditor accredited by BEE (Bureau of Energy Efficiency), Government of India was

appointed on 2017-18.

Among the various ENCON points suggested by them, following actions have been undertaken in FY 2019-20.

Overhauling of both Unit No.7 (Boiler & Auxiliary) & Unit No.8 was undertaken during the year under review as

energy efficient measure. Following energy efficient improvement measures are undertaken:

i) Checking of Condenser tubes for fouling or air ingression during the OH of both Unit 7 & Unit 8 to improve

vacuum.

ii) Checking & Replacement of the APH internals like worn out baskets of both Unit 7 & Unit 8 to improve gas

efficiency.

No agreement has been executed by the Company with any Overseas Organization

for technology absorption.

Since the Company is an unlisted Public

Company, the provisions of Section 134 of the Companies Act, 2013 read with Rule 5 of the Companies

(Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016, is not applicable. Besides,

there is no such employee who draws any remuneration exceeding the stipulated limit.

The Company did not enter into any

Contract or Arrangement with Related Parties as required under Section 188 (1) of the Companies Act, 2013 for the

financial year 2019-20.

The details of foreign exchange earnings and outgo etc. during

2019-20 were as follows:

a) Foreign Exchange Earnings : NIL

b) Foreign Exchange Outgo (In terms of rupee) :

(i) Import of Spares : NIL

(ii) Expenditure in Foreign Tour : NIL

According to the provisions of clause I of Sub section (3) & Sub Section

(5) of Section 134 of the Companies Act, 2013, this is to state:

i) That in preparation of the Annual Accounts, the applicable accounting standards had been followed along

with proper explanation relating to material departures;

ii) That the Directors had selected such accounting policies and applied them consistently and made

judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of

affairs of the Company at the end of the financial year 2019-20 and of the Profit and Loss of the Company

for that period;

iiii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of the Act for safeguarding the assets of the Company and for

preventing and detecting fraud and other irregularities;

iv) That the Directors had prepared the Annual Accounts on a going concern basis.

v) That the Directors had devised proper systems to ensure compliance with the provisions of all applicable

laws and that such systems were adequate and operating effectively.

8

10.0: Statutory and other Auditors:

11.1: Statutory Auditor:

11.2: Cost Auditor:

11.3: Secretarial Auditor:

11.4: Internal Auditor:

12.0: Vigilance Mechanism:

13.0: Internal Financial Control:

14.0: Fraud Reporting:

The Company has complied with the requirements of the Companies Act,

2013 in respect of requirements with regard to various Audit and Audit Committee of Directors as detailed below:-

M/s M.C Bhandari & Co, Chartered Accountants, was re-appointed as Statutory

Auditors of the Company by the Comptroller & Auditor General of India under Section 141 of the Companies Act,

2013, for auditing the Accounts of the Company for the financial year 2019-20 at an Audit fee of Rs.3,50,000/- plus

GST and reimbursement of such out of pocket expenses, as may be actually incurred for the purpose and

Transport facility or reimbursement of actual conveyance charges to the partners and Staff for travelling in

connection with the Audit. The said appointment was approved by the Audit Committee of Directors and by the thBoard of Directors and subsequently ratified by the Shareholders of the company in the 58 AGM held on

30.12.2019. The Statutory Auditors has submitted their report which along with observation of the Management

would be annexed to the Annual Report. The Report of CAGI on the Annual Accounts on its receipt shall also be

made a part of the Annual Report.

M/s. DGM & Associates, Kolkata, Cost Accountants were appointed as Cost Auditor under

section 148 of the Companies Act, 2013 to audit the Cost Accounting records of the Company for Power Plant for

the financial year 2019-20.

Your Company falls under the ambit of the threshold limit prescribed in the Companies

Act, 2013 and related Rules made there under for “Secretarial Audit” in the Company by a whole time Company

Secretary in practice. Accordingly, M/s D.Dutt & Co, Company Secretaries were appointed through Expression of

Interest as the Secretarial Auditor of the Company for the financial year 2019-20 at a remuneration of Rs.40,000/-

plus applicable taxes, if any, and reimbursement of actual travelling expenses as proposed by the Audit

Committee of Directors and approved by the Board of Directors. The Report submitted by Secretarial Auditor was

noted by the Audit Committee and Board of Directors. It has been attached as Annexure “II”.

The strength of the Departmental Internal Audit not being adequate and commensurate

with size of the Organization, external support has been taken by engaging a Practicing Chartered Accountants

Firm to carry out internal audit on a regular basis. During the year under report, M/s Ghosh & Associates,

Chartered Accountants, Durgapur-713216 were appointed as the Internal Auditor of the Company for a period of

one year with effect from 01.10.2019 and therefore, they had carried out the internal audit for the last two quarters

of the financial year 2019-20. The first two quarters of the FY 2019-20 was conducted by the earlier Auditor i.e M/s

S.K.Chowdhury & Associates. Reports submitted by the said Firm for the year 2019-20 were also reviewed by

Audit Committee of Directors.

The Company has a Vigilance Cell. Further, in line with the instruction from the

State Government, a decision was taken by the Board to subject the Company under the coverage of the State

Vigilance Commission. Actions were taken to strengthen Vigilance Cell through placement of Services of

experienced Officials from other departments. Attempts are made to ensure proper vigilance particularly over risk

prone areas requiring attention.

The internal control system of the Company is commensurate with its size and

nature of business. The internal control system is designed to safeguard and protect the Company from loss,

unauthorized use or dispossession of its assets etc. All the transactions are properly authorized, recorded and

reported to the Management. The Company is following all the applicable Accounting Standards for properly

maintaining the Books of Accounts and reporting in financial statements. The Internal Auditor of the company

checks and verifies the internal control and monitors them in accordance with policies adopted by the company.

According to information available, no fraud has been reported by or against the Company

during the year under report.

9

15.0: Risk Management Policy:

16.1: Disclosures under Sexual Harassment of Women at workplace (Prevention, Prohibition & Redressal) Act,

2013:

17.0: Composition of Board and Report on Corporate Governance:

18.0: Acknowledgement:

The Board of Directors has adopted a Comprehensive Risk Management Policy

which was recommended by the Audit Committee of Directors. The said Risk Management Policy is in place since

September, 2015. The Risk Management Policy has given focus on various aspects of Risk Management Strategy

comprising Identification, Assessment, Estimation, Evaluation, Control and Reporting of all vulnerable and risk prone

areas and activities. The Internal Audit Department makes review of the risk areas accordingly.

The Company has complied with the applicable provisions of the Sexual Harassment of Women at Workplace

(Prevention, Prohibition & Redressal) Act, 2013 and during the financial year 2019-20, no such incident has been

reported.

A report on Corporate Governance practices

adopted by the Company and relevant information thereto including composition of the Board of Directors has been

furnished separately as Annexure-III to this report.

The Board of Directors takes this opportunity to express its sincere thanks to the

Company's Consumers, Customers, Suppliers, Service Providers and all the Stakeholders for their continued

patronage. It would also like to place on record its gratitude for the guidance and support provided by various

Departments of the Government of West Bengal, concerned Ministries of the Government of India and particularly

Central Electricity Authority, West Bengal Pollution Control Board, West Bengal Electricity Regulatory Commission,

Durgapur Municipal Corporation, Asansol Durgapur Development Authority, Bankers, Power Finance Corporation Ltd,

West Bengal Power Development Corporation Ltd., West Bengal State Electricity Distribution Co. Ltd., West Bengal

State Electricity Transmission Co. Ltd., Coal India Limited and its subsidiaries, all the Railways, BHEL, WBMDTCL

and all other persons and organizations associated with the Company.

The Directors acknowledge and place on record its appreciation for the co-operation extended by the Statutory

Auditor, Cost Auditors, Secretarial Auditors and the Office of the Comptroller and Auditor General of India.

The Directors also acknowledge the contribution of the employees and various representative bodies of the

employees and expect that they will strive to improve the performance of the Company in the years to come.

The Directors would like to express their gratitude for the support and encouragement received from the Department

of Power, Government of West Bengal.

Sd/-(Shri S.Suresh Kumar, IAS)

Chairman

Dated:27.11.2020

10

ANNEXURE – I

MANAGEMENT DISCUSSIONS AND ANALYSIS

The report is placed with forward looking approach. All the observations, assumptions and

projections are based on the trend in the industry as envisaged from recent developments. This report

should be read in conjunction with the financial statements and other information included herein.

The business of the Company was affected in the year under review due rdto reduced demand from WBSEDCL. The State Government in its 53 Cabinet meeting held on 16.01.2019

approved the proposal of closure of Coke Oven Group of Plants, dismantling of the redundant plants which

are non-functional and have no commercial viability. It was further decided for engagement of a Valuer from

amongst the Empanelled Valuers of the Government of West Bengal through limited tendering for valuation

of assets and plants to be dismantled and disposed of through e-auction. The said Valuer has been selected

and they have commenced their job from June 2020. The Water business was less affected.

Indian power sector is undergoing a significant change that has redefined the industry

outlook. Sustained economic growth continues to drive electricity demand in India. The share of thermal

energy in the power generation segment remains identical to the global average, at just over 60% of total

installed capacity. However, while renewable account for more than 20% of energy generation in India, this

figure stands at just 15% for the rest of the world. In other segments such as hydro and nuclear power, India

remains largely at par with the global energy landscape. For the foreseeable future, growth in India's energy

generation capacity is expected to be driven by renewable, although the power generation sector still has

immediate challenges to overcome. As mentioned, Covid-19 has not had much of an impact on energy

demand, although a small blip was recorded owing to broader economic issues. It is expected that demand

should recover within half a year. However, pressure on incomes and revenues has led to large scale

payment delays, leaving energy generation companies with significant receivables in the near future.

W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in favour of m-

junction Services Ltd has been issued w.r.t valuation of COGP Plants. The duration of the contract is 18

months from the date of Work Order starting from valuation to its ultimate disposal. M/s m-junction has

submitted a fresh evaluation report in sealed envelope considering our request for revision. Accordingly, a

high level Committee has been constituted by the Managing Director which would open the sealed

envelopes and recommendation of the Committee and its subsequent endorsement by the Managing

Director would be placed before the Board in its next meeting for obtaining final acceptance.

Water Works is also one of the important business segments though not that large in terms of

volume. It is primarily used for the purpose of captive requirement of water for Plant and Township. The water is

also supplied to other industries and residential areas either directly or through ADDA or DMC. During the financial

year 2019-20, the performance of Water Works was satisfactory. New domestic connection for water is

discontinued since past many years. The details of sales of water to various consumers during 2019-20 are given

as under:

i) Industrial consumers – 2677225 KL for Rs.4,82,29,747/-

ii) Drinking Water – 10560663 KL for Rs.4,85,56,530/-

iii) IPT for both industrial and drinking – 14598568 KL for Rs.21,89,78,520/-

1. Approach:

2. General overview of the business:

3. Power Business:

4. Coke Oven Group of Plants:

5. Water Works:

11

6. Physical Performance of different Business Segments:

6.1 Generation of Power and processing of water:

6.2 Sales:

6.3 Sale of Power to WBSEDCL:

7.0: New & Ongoing Projects:

The performance of the Plants in terms of Generation and

Production etc., for the year 2019-20 and that of the previous year are furnished below:

Sale of Power, Coke, Water etc, during 2019-20 and that in the previous year are furnished

below:

Amount - Rs. in Crore

Residual COGP product MT – 17.07 – – & Coke conversion charges

Tar & By-Products MT – – – –

*Water KL 27,836.456 31.57 28,490.071 32.49

Ash MT 475822.39 10.71 – –

*Sale of water includes Inter Plant Transfer.

During FY: 2018-19, DPL functioned as distribution licensee along with embedded generation upto 31.12.2018

and thereafter as per Notification No 328/PO/C-IV/1E-60/13 (Pt-VA) dated 26.12.2018 of the Department of

Power & NES, Government of West Bengal, the entire distribution business and transmission business presently

undertaken by DPL along with all associated assets and liabilities have been transferred to WBSEDCL and

WBSETCL respectively with effect from 01.01.2019 and DPL started to function as generating company from

01.01.2019.

As GENCO, w.e.f 01.01.2019, DPL sale its entire ex-bus energy to WBSEDCL. Details of sale of ex-bus energy to

WBSEDCL during the period from Jan'19 to Mar'19, F.Y 2019-20 and from Apr'20 to Aug'20 are presented below

MU MU MU

507.28 1982.69 899.896

It is informed that in addition to setting up of 200 KWp Solar Power Plant in the first phase and 300 KWp Solar

PV Plant in second phase on the roof of utility buildings, another project of setting up of ground mounted

Solar PV Power Plant of array capacity 7 MWp plant at Durgapur has been envisaged. M/s Exide Industries

Limited has been entrusted by WBREDA for setting up of a ground-mounted Grid connected Solar PV Power

Plant of array capacity of 7MWp in DPL, Durgapur. The site was handed over to the Party in the month of

December, 2019. Installation job of this project is yet to commence.

Item Unit 2019-20 2018-19

Power MU 2231.728 2343.22

Water MLtr. 28,726.95 29,903

Unit Sale for the year 2019-20 2018-19

Quantity Amount Quantity Amount

Power MU 1982.688 798.24 2287.473 1060.44

From Jan 2019 to Mar 2019 F.Y. 2019-20 From Apr. 2020 to Aug. 2020

.

12

8.0: Other Plnt related information:

8.1 Coal Purchase Agreement for Power Plant:

8.2 Performance of Water Works:

9.0 Land Survey:

10: Captive Coal Block:

Coal required for the Power Station is purchased from

Eastern Coalfields Ltd., Mahanadi Coalfields Ltd and Bharat Coking Coal Ltd. in terms of respective Fuel

Supply Agreements (FSA). Initially, the total quantity was 22 lakhs MT per year from ECL, BCCL and

MCL together. It was reduced to 18.40 Lakhs MT per year after decommissioning of Units 1 to 5 and

considering power plant capacity of 410 MW, comprising 110MW Unit No 6 and 300MW Unit No7.

However, ACQ for Eastern Coalfields Ltd. and Mahanadi Coalfields Ltd had been revised by swapping

2,00,000 MT from Mahanadi Coalfields Ltd to Eastern Coalfields Ltd., and consequently the ACQ for

Eastern Coalfields Ltd., Mahanadi Coalfields Ltd and Bharat Coking Coal Ltd. became 5,00,000 MT,

5,00,000 MT and 8,40,000 MT, respectively. No provision of coal linkage is available for Unit No.8.

Hence, the coal available as per FSA not being adequate, aDPL obtained the captive coal mine in

respect of which details have been given at Sl.10. However, through an intimation in the month of

January 2020 from Coal India Limited (CIL), the above ACQ has again been revised for a total quantity of

17,66,000 MT, consisting of 4,57,000 MT of ECL, 7,86,000 MT of BCCL and 5,23,000 MT of MCL.

During the year under review, although Water Works continued to

remain a profitable business, the segmental results reflected a loss due to an accounting provision for

unrealized debts since 2004 from MAMC. The tariff for IPT and industrial water was not revised during

the year under report.

In order to make a complete assessment of land available with DPL and proper

documentation of the same, comprehensive action was taken. Based on available records, the total land

area of the Company is 3107.673 acres out of which, freehold area is 3103.634 acres and leasehold

area is 4.039 acres. A special exercise was undertaken for survey, identification, ascertainment of

present status and documentation of the Land owned by DPL and considerable progress has been

made in this regard. Land survey and assessment of available land has been completed for entire land.

The total freehold area of DPL is 3103.634 acres which include 1067.040 acres at Bidhannagar, a part of

which has been allotted by ADDA to different Allottees of which 115 acres are vacant which has been

marked with barbed wires. Process for Mutation for the entire 3103.634 acres land was started and has

been completed except for 209.29 acres at Bidhannagar out of 1067.04 acres in respect of which

hearing by BLRO, Faridpur, Durgapur is in process.

In the meantime, DPL is continuing its efforts for completion of mutation of residual portion of 209.29

acres of land out of 1067.04 acres of land at Mouza Gopinathpur, JL No.85. Meanwhile, Land & Land

Revenue Department has put up a demand notice for land revenue, which is yet to be deposited by the

Durgapur Projects Ltd.

The following developments w.r.t Trans-Damodar Coal Mine at Barjora, Bankura is

reported to the Shareholders of the Company:

a) YES Bank Ltd., the banker of MDO has renewed the Bank Guarantee (BG no. 190BG07191770001) of

Rs. 100 Crore on 25.06.2020 valid upto 25.10.2020 with claim period upto 25.10.2021 and the same has thbeen submitted by MDO on 10.07.2020. MDO has been instructed to renew the BG before 25 October

2020 as per terms and conditions of CMSA.

b) Mine Closure Plan for Trans Damodar Coal Mine has been approved by Ministry of Coal, Govt. of India

on 10.07.2019 vide order no. 34011/3/2019-CPAM. In this regard DPL has deposited an amount of

13

Rs.71,18,678/- towards first installment of Mine Closure of the coal mine to the Escrow Account on

behalf of MDO. The said amount will be realized from the bills of Mining charge payable to MDO.

c) DPL deposited an amount of Rs. 42,23,284/- on 26.08.2019 to the dedicated account of BDO, Barjora for

releasing crop compensation for the period of four years (FY 2015-16 to FY 2018-19) for 32.994 acre of

affected land due to sliding of OB materials and water logging. As per utilization report of BDO, Barjora, stRs.6,52,101/- has been disbursed to the land owners till 31 August 2020. The matter of Crop

thCompensation was further discussed in the District Committee Meeting held on 10 Sept 2020 and rate

of crop compensation was further revised to Rs.64,000/- per acre per year for five years for FY 2015-

2020. Total cost involvement will be Rs.1,05,58,210/- as per the revised rate. BDO Barjora has submitted

a demand note of Rs.50,98,657/- for deposition in addition to previous fund.

d) Rehabilitation and Resettlement Packages for the projects affected people (PAP) of Trans Damodar

Coal Mine was approved in the District Committee Meeting, chaired by the District Magistrate, Bankura

held on 04.09.2019.

e) As per Clause no. 25.1 of CMSA, M/s Indian Mine Planners and Consultant has been selected and

appointed as Independent Engineer through e-tendering process for the period of three years. The LOA

has been issued on 22.06.2020. The total cost involvement for three years is Rs. 38,23,200/- including

GST.MDO will bear 50% of the total cost as per CMSA and the said amount will be realized from the bills

of Mining Charge payable to MDO.

f) DPL owned 12.48 acre of land along with vesting order from MOC and 367.70 acre (282.46 acre + 85.24

acre) from WBMDTCL. Further, DPL has purchased 3.7498 acre from raiyats and the partners of ex-

MDO as per decided rate per acre (through District Committee) with agreed terms for payment of

difference amount for any revision of rate in future. However, DPL has to purchase more than 580 acre of

land from raiyats and partners of ex-MDO.

g) DPL has given “In-principal Approval” to West Bengal Highway Development Corporation Limited

(WBHDCL) vide letter dated 04.12.2019 for bearing the total expenditure of the construction work along

with the cost of DPR for shifting of a portion of SH-9 passing through mine boundary. Representatives of

WBHDCL have visited the coal mine on 04.03.2020 made survey of the shifting project. On the same day

representatives of PHE, GoWB and WBSEDCL has also visited the coal mine to inspect the shifting job

of water pipe line and 11 kv overhead electrical line respectively. Accordingly, WBHDCL has engaged

M/s Xplorer Consultancy Pvt Ltd, the Successful Bidder for preparation of DPR with a total cost

involvement of Rs.18,40,800/- including GST and submitted a fund request vide Memo no.

1049/WBHDCL dated 01.10.2020 as consultancy fees for preparation of DPR amounting

Rs.18,40,800/- (Rupees Eighteen lakh forty thousand and eight hundred) only in favour of West Bengal

Highway Development Corporation Limited.

h) DPL has terminated the service contract of WBMDTCL as Advisor-cum-Mining Agent of DPL for its Trans

Damodar Coal Mine w.e.f. 01.05.2020 as per advice of the Board of DPL held on 27.04.2020.

i) DPL has engaged Sri A.K. Sengupta as General Manager (Mining), Sri S.P. Dutta Majumdar as Advisor

(Mining), Sri K. Chakraborty as Agent, Sri P. Banerjee as Mine Manager, Sri D. Mandal as Asst. Mine

Manager, Sri S. Ghosh as Mine surveyor.

14

j) 446 ex-employees of ex-MDO of the coal mine have been enrolled by MDO in its payroll w.e.f.

01.06.2020. Accordingly, MDO has disbursed monthly salary of their employees w.e.f. June 2020.

k) DPL submitted a proposal to the Department of Power, Govt. of WB for reimbursement of salary of ex-

employees of ex-MDO from January 2020 to May 2020 as per request of MDO. Accordingly, approval of

GoWB has been received through Dept of Power for disbursement of salary to ex-employees from

January to May 2020. DPL have already disbursed the salaries to the ex-employees through WBMDTCL

for the month of January 2020 to April 2020 on urgent basis with the approval of MD, DPL. Payment for

the month of May is required to be released.

In terms of the Govt. of West Bengal letters no 09-PO/O/C-

VI/5S-33/15 dated 31.01.2019 WBSEDCL shall purchase total generation quantum of DPL at a pool

power cost of 389 p/kWh of WBPDCL for FY 2018-19 w.e.f 01.01.2019 as an interim measure subject to

the final adjustment of actual pool cost of WBPDCL for FY 2016-17 & FY 2017-18 and pending final tariff

determination by WBERC under section 62 of the EA of 2003. Further in terms of the Govt. of West

Bengal letter no 43(2)-PO/O/C-VI/5S-33/15(Pt.-I) dated 19.06.2019 DPL and WBSEDCL mutually

agreed that the provisional power purchase cost of WBSEDCL from DPL shall be ? 4.07/KWH comprising

capacity charge (? 1.43/KWH) and energy charge (? 2.64/KWH) w.e.f. 01.06.2019 as an interim measure

subject to further revision from time to time mutually agreed by and between DPL & WBSEDCL till tariff

determination for DPL by WBERC under section 62 of the EA of 2003.

PPA in this regard is under process of

finalization. Both the parties agreed that the tariffs for supply of electricity to WBSEDCL from the

generating stations of DPL under this agreement shall be determined by the Commission from time to

time. The tariffs for supply of electricity from this generating station of DPL to WBSEDCL under this

agreement shall be determined in accordance with the Tariff Regulation. Jointly signed PPA shall be

placed by WBSEDCL to WBERC for approval.

As on date, a considerable part of

the work force became surplus. At the same time, the company, as a matter of policy, did not go for any

recruitment for several years except in unavoidable situation. There has also been reduction in workforce

over the years due to separation on account of retirement, resignation or otherwise. The existing system

of deputation of employees under WBSEDCL and WBSETCL is continuing. However, the employees

shall be utilized by WBSEDCL and WBSETCL within 100 Kms of radius. Regarding the redeployment of

COGP employees under different Govt Offices, the matter has been taken up with respective

Departments. We are yet to receive any communication from their end.

The number of regular employees as on 31.3.2020 was 2326 consisting of 584

Officers and 1742 staff & workers as against 2507 as on 31.3.2019 comprising 466 officers and 2041 staff &

workers. There had been no fresh induction during the year. Further, total number of employees separated

from the Company on account of superannuation, resignation and death during 2019-20 was 201.

Industrial harmony had been maintained during the year with support and co-

operation of Unions and Associations. Your Directors expect that it would be so maintained in the days to

come and with the concerted support of all concerned the challenges ahead could be met.

11.0: Tariff and Consumer profile:

11.1: Tariff for sale of power to WBSEDCL :

11.2: Status of PPA for purchase of power by WBSEDCL from DPL:

12. Human Resources, Personnel & Welfare and Industrial Relations:

12.1: Employees Strength:

12.3: Industrial Relation:

15

12.4: Safety:

12.5: Training:

12.6: Township:

13.0: Corporate Social Responsibility:

14.0: Other Information:

14.1: Disposal of Unit No.6 of DPPS:

15.0: The Year Ahead :

The Safety Department takes care of the safety measures to provide safe and risk free work

environment to the employees including that for the workers engaged by Contractors and also to ensure

compliance of safety requirements as per statutory requirements. In order to bring safety awareness

amongst all categories of employees, every year 'National Safety Day' is observed to disseminate safety

awareness amongst all classes of employees including workmen engaged by Contractors. Classes for

Officers in general awareness on Safety, disaster management were held during the year under review.

There is a Training Department to arrange Training Programmes for employees of the

Company throughout the year. During the year 2019-20 also training was imparted to various categories

of employees organized by other Institutions as well as in-house. The Company also provides

opportunity for training of the students undergoing the courses like Graduation in Engineering and other

professional courses according to the prescribed guidelines of those Institutes. During the year 2019-20,

1233 students were provided vocational training in the Company.

The Company has its own township with residential units of various categories to provide

accommodation to its employees. There are basic civic facilities like Hospital, shopping centers,

Schools, Clubs etc in the Township which is spread over three Zones.

DPL comes under the relevant provisions of the Companies Act,

2013 for constitution of Corporate Social Responsibility Committee. Accordingly, the Board has

constituted a Corporate Social Responsibility (CSR) Committee with required number of Directors and a

Corporate Social Responsibility Policy has been framed and adopted by the CSR Committee of

Directors though due to financial loss the Company is not under mandatory obligation to spend any

money for this purpose. However, as a part of Community and Welfare Services the Company extended

financial and other assistance through various means within its ability and resources to Schools, Clubs

and Social Organizations mostly located within the Company's Township.

W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in

favour of m-junction Services Ltd has been issued w.r.t valuation of Unit No.6, DPPS and COGP. The

duration of the contract is 18 months from the date of Work Order starting from valuation to its ultimate

disposal.

It is expected, upon completion of Organizational and Financial Restructuring of the

Company, the situation would brighten and the future business of the Company as a Wholly Owned

Subsidiary Company of WBPDCL will improve.

Sd/-(Shri S.Suresh Kumar, IAS)

Chairman

Dated:27.11.2020

16

D. DUTT & CO.

Company Secretaries

Swastic Centre, 3rd Floor, Room No. 3EP-8 Chowringhee Square, Kolkata - 700 069( : (033) 2213-5482, : : (033) 2248-5482

È: 94330 35482, 9831110275e-mail : [email protected]

Annexure - II

Form No. MR - 3

FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2020[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies

(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

ToThe MembersThe Durgapur Projects Limited

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the

adherence to good corporate practices by The Durgapur Projects Limited (hereinafter called ' the Company')

having CIN : U40102WB1961SG025250. Secretarial Audit was Conducted in a manner that provided us a

reasonable basis for evaluating the corporate conducts / statutory compliance and expressing our opinion

thereon.

Based on our verification of the Durgapur Projects Limited's books papers, minute books, forms and returns

filed and other records maintained by the Company and also the information provied by the Company, its

officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that

stin our opinion, the Company has, during the audit period covering the financial year ended on 31 March,

2020 subject to our observations made below, complied with the statutory provisions listed hereunder and

also that the company has proper Board processes and compliance mechanism in place to the extent, in the

manner and subject to the reporting made hereinafter.

We have examined the books, papers, minute books, forms and returns filed and other records maintained

stby the Company for the financial year ended on 31 March, 2020 according to the provisions of :

(i) The Companies Act, 2013 (the Act) and the Rules made there under :

(ii) Following other laws, as identified and confirmed by the management, as specifically applicable to the

company:

?Mines Act, 1952 and Rules / Regulations made there under :

?Electricity Act, 2003

we have also examined compliance with the applicable clauses of Secretarial Standards issued by the

Institute of Company Secretaries of India and approved by the Central Government under Section 118 (10) of

the Companies Act, 2013.

SECRETARIAL AUDIT REPORT

Date : .................... 14.08.2020

17

D. DUTT & CO.

Company Secretaries Continuation Sheet No.

The management has made written representation and we have also checked that the Company being an unlisted

Public Limited Company the Following Acts. Regulations, Guidelines, Agreements etc. as specified in the

prescribed Form MR-3 were not applicable :

i) Foreign Exchange Managements Act, 1999 and the rules and regulations made there under to the extent

applicable for Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings.

ii) The Securities Contracts (Regulation) Act, 1956, ('SCRA') and the rules made there under;

iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under.

iv) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,

1992 ('SEBI Act') :

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)

Regulations, 2011;

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

c) The Securities and Exchange Board of India (Issue off Capital and Disclosure Requirements)

Regulations, 2018;

d) The Securities and Exchange Board of India (Employee Stock Option Scheme nd Employee Stock

Purchase Scheme) Guidelines, 1999 and / or The Securities and Exchange Board of India (Share Based

Employee Benefits) Regulations, 2014;

e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)

Regulations, 1993 regarding the Companies Act and Dealing with client;

g) The Seurities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, and

h) The Securities and Exchange Board of India (Buybak of Securities Regulations, 2018;

v) Listing Agreements with Stock Exchanges read with the securities and Exchange Board of India (Listing

Obligations and Disclosure Requirement) Regulations, 2015. During the year under review the Company has

complied with the provisions of the Acts, Rules Regulations , Guidelines etc. mentioned above and has

generally adhered to the Secretarial standards, except that :

– Only three meetings of the Board of Directors were convened and held during the financial year contrary to the

requirements of Section 173(1) of the Act;

– The Company is having paid - up equity share capital exceeding Rs. 10 Crore, but does not have a whole -

time Company Secretary contrary to the requirements of Rule 8A off the companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014.

18

– Text of Resolutions passed by circulation by the Board of Directors have not been recorded in the Minutes of

the Meetings. Contrary to the requirements of Secretarial standards SS - 1

– Appointment of Independent Directors have not been approved at the meeting of the shareholders as

required by para IV(2) of schedule IV to the Act, but noted by them.

In respect of other laws specifically applicable to the Company we have broadly reviewed the same, without

carrying out detailed examination of all the relevant records / documents with a view to determine accuracy

and completeness of periodical compliance. During the course of our audit, we have relied on information

placed before the Board at its meetings and written representations made by the management in this regard

and the reporting is limited to that extent.

a) The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-

Executive Directors [ Government Nominee Directors ] and Independent directors [ appointed by

Government of West Bengal ]. Subject to our observations above relating to appointment of independent

directors, the changes in the composition of the Board of Directors that took place during the financial year

under review were carried out in compliance with the provisions of the Act.

b) Adequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on

agenda were sent at least seven days in advance for meetings other that those held at shorter notices and a

system exists for seeking and obtaining further information and clarifications on the agenda items the

meeting and for meaningful participation at the meeting.

c) Majority decision is carried through while the dissenting members' views are captured and recorded as part

of the minutes.

that based on review of compliance mechanism established by the Company, we are of

the opinion that, there are adequate systems and processes in place in the Company which is

commensurate with the size and operations of the company to monitor and ensure compliance with

applicable laws, rules, regulations and guidelines.

the Company has appropriately responded to notices for show causes,

claims, dues demands, fines penalties etc. received from various statutory / regulatory authorities and

initiated actions for corrective measures, where necessary. The independent directors at their separate

meeting have observed that there should be improvement in implementation of corrective measures

suggested by various Committee of Directors from time to time.

the following specific events / actions having a major bearing on the Company's

affairs in pursuance of the above referred laws, rules, regulations guidelines, standards etc. referred to

above :

a) Article 2 of the Articles of Association defines the company as a Private Limited Company whereas the Class

of the Company is 'Public Limited' as per Company Master Data on MCA Portal. Further Article 100 of the

Articles of Association stipulates that the number of directors shall not be less that Two. The combined effect

We further report that :

We further report

We have been informed that

We further report that

D. DUTT & CO.


19

of Article 2 read with Article 100 resembles the Company as 'Private Limited Company' only. We have,

however, been served with a written opinion of a Practicing Company Secretary dated 19.05.2014 obtained by

the Company to the effect that since ' the Company opted to continue as a 'Public Company' and has been

continuing as such, it is a Public Company and a Government Company as well as per the Companies Act,

2013 and all the provisions of the Companies Act, 2013 and the Rules made thereunder or as amended from

time to time, as applicable to Public Companies will be applicable to this Company.'

b) A decision was taken by the Government of West Bengal for restructuring of the Company vide Notification No.

319-PO/O/C/C-IV/1E-60/13 (Part - V A) dated 08.12.2017. In continuation of the said notification issued by the

State Government, the Department of Power & NES, Government of West Bengal, issued another notification

bearing No. 328 /PO/O/C-IV /1E - 60/13 (Pt. V A) dated 26.12.2018 whereupon w.e.f. 01.01.2019 the entire

electricity transmission activities along with all associated assets and liabilities would be transferred to

WBSETCL and the entire electricity distribution activities along with all associated assets and liabilities would

the transferred to WBSEDCL. These transfers were to be effected by way of slump Transaction Agreements.

Accordingly, the Slump Transaction Agreements with WBSETCL. These transfers were to be effected by way

of Slump Transaction Agreements. Accordingly, the Slump Transaction Agreements with WBSETCL had

been executed on 11.04.2019 and that with WBSEDCL on 30.09.2019 in accordance with the approval of

Members accorded by Special Resolution under section 180 (1) (a) of the Companies Act, 2013 at its Annual

General Meeting held on 21.12.2018.

Place : Kolkata For D. Dutt & Co

Company SecretariesUNIQUE CODE NUMBER : 12001WB209400

Dated : 14.08.2020

(DEBABRATA DUTT)

Proprietor

FCS - 5401

C.P. No. : 3824

UDIN No. : F005401B000582725

This report is to be read with our letter of even date which is annexed as Annexure- A and forms an integral part of this report

20

D. DUTT & CO.


Annexure - ATo,The MembersThe Durgapur Projects Limited

Our Secretarial Audit Report for the Financial year ended 31st March, 2020 of even date is to be read along with this letter.

1. It is the responsibility of the management of the Company to maintain proper secretarial records, devise

proper systems to endure compliance with the provisions of all Corporate and other applicable laws, rules,

regulations standards and also to ensure that the systems are adequate and operate effectively.

2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by

the Company with respect to secretarial compliance based on our audit.

3. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance

about the correctness of the contents of the secretarial records. The verification was done on test basis to

ensure that correct facts are reflected in secretarial records.

4. We believe that the audit evidence and information obtained from the Company's management is is adequate

and appropriate for us to provide us a basis of our opinion.

5. We have not verified the correctness and appropriateness of financial records, books of accounts, compliance

of applicable direct and indirect tax laws of the company.

6. Wherever required, we have obtained the management representation about the compliance of laws, rules,

regulations, guidelines, standards and happening of events etc.

7. The Secretarial Audit report is neither and assurance as to the future viability of the Company nor of the

efficacy or effectiveness with which the management has conducted the affairs of the company.

8. This report has been prepared upon receipt / exchange of requisite information and documents mostly through

electronic mail during the periods of sporadic lockdown due to Covid-19 pndemic as notified by Government of

West Bengal.

9. Due to partial and sporadic lockdown and consequent restrictions on movement we could not verify all the

original records of minutes of meetings of the Board of Directors and its various Committees and / or other

relevant papers.

Place : Kolkat For D. Dutt & Co.Company Secretaries

UNIQUE CODE NUMBER : 12001WB209400

Date : 14.08.2020

(DEBABRATA DUTT)Proprietor

FCS - 5401C.P.No. 3824

UDIN No. : F005401B000582725

Management's Responsibility :

Auditor's Responsibility :

Disclaimer :

21

Comments of the Secretarial Auditor Replies to the CommentsSl.No.

1. Only three meetings of the Board of

Directors were convened and held during

the financial year contrary to the

requirements of section 173(1) of the Act.

The Company is having a paid up equity

share capital exceeding Rs. 10 Crore but

does not have a whole-time Company

Secretary Contrary to the requirements of

Rule 8A of the Companies (Appointment

and Remuneration of Managerial

Personnel) Rules, 2014.

Text of Resolutions passed by circulation

by the Board off Directors has not been

recorded in the Minutes of the Meetings,

contrary to the requirements of

Secretarial Standards SS - 1.

Appointment of Independent Directors

have not been approved at the meeting of

the shareholders as required by Para

IV(2) of schedule IV to the Act, but noted

by them.

It was decided to convene a Board meeting on

25.03.2020 for which Notice was also given to all the

members of the Board of Directors. However, due to

sudden Nationwide Lockdown announced by the

Hon'ble Prime Minister of India w.e.f. intervening

night 24th / 25th of March, 2020 the meeting could

not be held and was postponed.

DPL in order to appoint a whole time Company

Secretary has published an advertisement in reputed

dailies on 26.09.2019. However, since the response

to the said advertisement was poor, another

advertisement for selection of whole time Company

Secretary was published in reputed dailies on

28.01.2020. However, subsequent Lockdown

announced by the Government of India slowed down

the process. The Company is in the process of short

listing of candidates and the candidates would be

called for interview very soon.

It is submitted that the text of Explanatory notes and

relevant Resolution passed by circulation by the

Board of Directors of DPL are placed for ratification in

the subsequent meeting of the Board.

However, as advised, henceforth for better proedural

compliance, the text of Resolutions passed by

circulation by the Board would be recorded in the

minutes also from subsequent meetings.

The Independent Directors are appointed by the

Hon'ble Governor of WB through Dept. of Power,

which along with his nominees hold the entire share

capital of DPL. Hence the appointment of

Independent Directors is being placed for noting of

the Shareholders of DPL at the AGM wherein the

Shareholders are the Authorised Representative of

Hon'ble Governor of WB and his nominees.However, as advised, henceforth the word 'approved'

would be used instead of 'noting ' from subsequent

AGM.

2.

3.

4.

COMMENTS OF THE SECRETARIAL AUDITOR FOR THE FY 2019-2020 AND REPLIES THERETO

22

ANNEXURE-III

The Company endeavors to ensure good corporate practices based on transparency, fairness,

professionalism and accountability to build confidence among all stakeholders and improving performance with

sustainable growth and profitability. A brief report on Corporate Governance is given below:

The composition of Board of Directors of the company during the year under report was as under:

i) Shri Sunil Kumar Gupta, I.A.S, Additional Chief Secretary, Department of Power, Govt. of West

Bengal resigned from the Chairmanship of the Company w.e.f 06.12.2019 consequent upon his

transfer of Department of Agriculture, GoWB.

ii) Shri Suresh Kumar Sepuri, IAS, Additional Chief Secretary, Department of Power, Govt of West

Bengal was appointed as the Chairman, DPL w.e.f 20.01.2020.

iii) Shri Ashis Saha, Managing Director w.e.f. 01.09.2018.[ Expired on 19.09.2020]

iv) Shri Goutam Biswas, Director w.e.f 01.11.2018.[ Appointed as MD, DPL w.e.f 06.10.2020]

v) Shri Rajesh Pandey, I.A.S, CMD WBSEDCL and Director, DPL, w.e.f. 29.01.2016 to 28.06.2019

vi) Shri Santanu Basu, IAS & CMD, WBSEDCL was appointed as Director of DPL w.e.f 09.07.2019.

vii) Dr. A.N.Biswas, IAS, Director & Commissioner, Department of Power & NES, Govt. of West Bengal

has been appointed as a Director w.e.f 21.06.2017 who ceased his Office vide resignation dated

09.04.2020 consequent upon his transfer to Dept. of Education, GoWB.

viii) Smt Saswati Banerjee, I.A.S (Retd), was appointed as woman Director and Independent Director

w.e.f. 21.06.2017. After completion of her tenure, she was re-appointed for a further period of one

year w.e.f 28.07.2020 subject to validity of registration with IICA beyond February, 2021.

ix) Shri Pranab Kumar Das Sharma, former Chief Engineer WBSETCL, has been appointed as

Independent Director w.e.f. 06.05.2017. After completion of his tenure, he was re-appointed for a

further period of one year w.e.f 28.07.2020 subject to validity of registration with IICA beyond

February, 2021 .

x) Shri Srikumar Banerjee was appointed as Director of DPL w.e.f 01.06.2019.

xi) Dr. P.B.Salim, IAS & CMD, WBPDCL was appointed as Government representative in every Board

meeting of DPL w.e.f 09.07.2019.

xii) Shri Saurabh Majumdar, Dy. Financial Advisor & E.O.Dy.Secretary, Dept of Power, GoWB was

appointed as Director of DPL w.e.f 25.06.2020 pursuant to Notification No.245-PO/O/C-IV/3E-

05/2002 dated 25.06.2020.

The Key Managerial Personnel in the company are as under:

i) Shri Ashis Saha - Managing Director w .e. f 01.09.2018 to 18.09.2020.

ii) Shri P.K Mitra - GM (F&A) & CFO upto 14.11.2019. Advisor (F&A) & CFO w.e.f 15.11.2019

iii) Shri Goutam Biswas - Managing Director w.e.f 06.10.2020

Composition of Board and Report on Corporate Governance

1: Composition of Board of Directors during the Year under Report and subsequent changes thereof:

2. Details of Key Managerial Personnel:

23

Name of the Directors Meeting held during Meetings Remarks

Relevant period attended

Shri S.K Gupta I.A.S 3 2 Ceased as Chairman w.e.f Chairman 06.12.2019

Shri Suresh Kumar Sepuri, IAS, 3 0 Appointed as Chairman w.e.f Chairman 20.01.2020.

ShriAshis Saha 3 3 Appointed as MD w.e.fManaging Director 01.09.2018

Shri. Rajesh Pandey, I.A.S 3 0 Ceased to be the Director w.e.fDirector 28.06.2019

Shri Santanu Basu, IAS, Director 3 2 Appointed w.e.f 09.07.2019

Smt Saswati Banerjee, IAS(Retd) 3 2 Appointed w.e.f 21.06.2017Director

Dr. A.N Biswas, IAS, Director 3 3 Ceased as Director w.e.f

09.04.2020

Shri Goutam Biswas, Director 3 3 Appointed as Director w.e.f

01.11.2018

Shri Pranab Kumar Dassharma, 3 3 Appointed on 06.05.2017Director

Shri Srikumar Banerjee, Director 3 3 Appointed as Director w.e.f

01.06.2019.

Three Committees of Directors, viz., Audit Committee, Procurement committee and Operation Committee were

constituted or re-constituted as the case may be, by the Board for better monitoring of the activities of the

Company, corporate governance, and improvement in organizational efficiency, transparency and internal

control. DPL also have CSR Committee and Nomination and Remuneration Committee of Directors also. The

Audit Committee was also advised to function taking into consideration the provisions of the new Companies

Act, 2013. One Independent Directors Committee comprising only independent directors has been constituted

for complying with the Clause 2.3 of the Secretarial Standard-1 issued by the Institute of Company Secretaries

of India (ICSI). The Composition of the said six Committees, number of meetings held during 2019-20 and the

number of meetings attended by the members of the Committees are furnished below:

Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20

1. Sri Srikumar Banerjee, Director & Chairman 5 5

2. Shri Pranab Kumar Dassharma, Director 5 5

3. Smt. Saswati Banerjee, Director 5 5

As per the Companies Act, 2013, the Audit Committee of Directors should comprise of independent Directors in

majority, Audit Committee of Directors has been reconstituted accordingly, and hence the said Committee has

adequate representation of the independent directors.

4: Committees of the Board:

a) The Audit Committee of Directors:

3: Meetings of the Board of Directors:

The Board meetings are held regularly. During the year 2019-20 all together 3(Three) meetings were held. A

statement is furnished below indicating the number of meetings held during the year 2019-20 and the number of

meetings attended by the said Directors:

24

b) The Procurement Committee :

c. Independent Directors :

d) Operation Committee :

e) Nomination & Remuneration Committee :

f) CSR Committee:

6. Directorship in other Company as Nominee of the Durgapur Projects Limited:


1. Shri Ashis Saha -Managing Director & 1 1Chairman w. e. f. 01.09.2018

2. Dr. A.N.Biswas, IAS & Director 1 1



1. Smt.Saswati Banerjee, Director & Chairman 1 1

2. Shri Srikumar Banerjee, Director 1 1


Sl. Name of the MemberNo.

1. Shri Ashis Saha - Managing Director & Chairman

2. Dr. A. N. Biswas, Director

3. Shri Pranab Kumar Dassharma, Director


1. Shri Srikumar Banerjee, Director 3 3

2. Dr. A.N. Biswas, IAS, Director 3 3

3. Shri Pranab Kumar Das Sharma, Director 3 3

4. Smt. Saswati Banerjee, Director 3 3


1. Shri Srikumar Banerjee, Director Nil Nil

2. Shri Ashis Saha, Managing Director Nil Nil

3. Smt. Saswati Banerjee, Director Nil Nil

There had been no meeting of the Operation Committee of Directors during the period under review.

The Managing Director used to be the nominee Director of DPL to the Board of Directors of Bengal Emta Coal

Mines Limited (BECML) in which the Company had invested for 6% of the total paid up share capital. In view of the

cessation of the mining operation by the said Joint Venture Company after 31.03.2015 due to de-allocation of coal

25

blocks by the Hon'ble Supreme Court of India, the then nominee of DPL, Shri Mrinal Kanti Mitra, ex-Managing

Director, DPL, was directed by the Board of Directors of the company to submit resignation from the Board of

Directors of BECML with effect from 24.9.2015. Accordingly, resigned from the Board of BECML and also

submitted “Form No. DIR-11” to the Registrar of Companies confirming his resignation from the Board of

Bengal Emta Coal Mines Limited from that date.

Thereafter, DPL has not sent any nominee Director to the Board of BECML even after joining of Shri Ashis Saha

as the Managing Director of the company.

Your Company being a State Government Company has been exempted from complying with this requirement

vide Notification dated 05.06.2015 issued by the Ministry of Corporate Affairs (MCA), Government of India

whereby certain exemption from complying with certain provisions of the Companies Act, 2013 were granted to

the Government Companies.

The Secretarial Auditor of the company in its Annual Audit Report for the FY 2019-20 had stated that “there are

adequate systems and processes in the Company commensurate with the size and operations of the company

to monitor and ensure compliance with applicable laws, rules, regulations and guidelines except for few

observations.” The replies to such observations have been given to the Secretarial Auditor. Any non

compliance or an area which requires urgent attention for necessary action is brought to the notice of the Board

wherever necessary.

The Board constituted CSR Committee of Directors comprising of Smt Saswati Banerjee, IAS (Retd), Shri

Srikumar Banerjee and Shri Ashis Saha. Since DPL has been incurring loss, no amount is to be spent

statutorily for the purpose of CSR. However, CSR Policy has been framed by the CSR Committee of Directors.

Sd/-

(Shri S.Suresh Kumar, IAS)

Chairman

Dated: 27.11.2020

7. Statement indicating the manner in which Formal Annual Evaluation has been made by the Board

of its own performance, its Directors, and that of its Committees:

8. Compliance Certificate:

9. CSR Committee:

26

=+FÜFFaáFÜF ÒÍFFÎF ÛFùFáFW&FF=+FÞ(áFW&FFÑFÞU‡FF II)ÑFPè˜FÛF ÙFk;FFáF

OFFICE OF THEPRINCIPAL ACCOUNTANT GENERAL

(Audit - II)West Bengal

No. : OA (ESA-II) Accounts / DPL / 2019-20 / 498Date : 24.12.2020

To,The Managing Director,The Durgapur Projects Limited,Administrative BuildingDurgapur 713201

Sub : Comments of the Comptroller and Auditor General of India under Section 143(6)(b) of the

Companies Act, 2013 on the Financial Statements of the Durgapur Projects Limited for the year ended 31

March 2020

Sir,

I am to forward herewith the Comments of the Comptroller and Auditor General of India Under

Section 143(6) (b) of the Companies Act, 2013 on the Financial Statements of The Durgapur Projects

Limited for the year ended 31 March 2020.

Yours Faithfully,

Encl. As stated Deputy Accountant General (ESA -II)

West Bengal

õFU. ¡FU. EX. =+ÛÑáFWƒõF, °U. J×+. ÙáFFc=+, õFFá© áFW=+, =+XáF=+F¶FF - 700 064

27

COMMENTS OF THE COMTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION

143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE

DURGAPUR PROJECTS LIMITED FOR THE YEAR ENDED 31 MARCH 2020.

The preparation of Financial statements of the Durgapur Projects Limited for the year ended 31

March 2020, in accordance with the financial reporting framework prescribed under the Companies

Act, 2013 (Act), is the responsibility of the Management of the Company., The Statutory auditors

appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act are

responsible for expressing opinion on the financial statements under section 143 of the Act based on

independent audit in accordance with the standards on auditing prescribed under section 143(10) of

the Act. This is stated to have been done by them vide their Audit Report dated 27.11.2020.

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

audit of the financial statements of The Durgapur Projects Limited for the year ended 31 March 2020

under section 143(6) (a) of the Act. 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 supplementary audit nothing significant has come to my knowledge which

would give rise to any comment upon or supplement to statutory auditors' report under section

143(6)(b) of the Act.

For and on the behalf of the

Comptroller & Auditor General of India

Dated at Kolkata (Reena Saha)24 Dec. 2020 Principal Accountant General (Audit-II)

West Bengal

28

M. C. Bhandari & Co.Chartered Accountants

4, Synagogue StreetSuite # 205, 2nd FloorKolkata - 700 001Phone : 033 2242 6077E: [email protected]@mcb.net.inweb : mcb.net.in

INDEPENDENT AUDITOR'S REPORT

Report on the Audit of the Financial Statements

Opinion

Basis for Opinion

Material Uncertainty related to Going Concern

ToThe MembersThe Durgapur Projects Limited

We have audited the financial statements of The Durgapur Projects Limited ('the company'), which

comprises the Balance sheet as at 31st March, 2020, and the statement or profit and loss, and statement of

cash flows for the year then ended, and notes to the financial statements, including summary of significant

accounting policies and other explanatory information (' the statement').

In our opinion and to the best of our information and according to the explanations give to us, the aforesaid

financial statements along with the notes thereon, give the information required by the companies act, 2013

in the manner so required and give a true and fair fiew in conformity with the accounting principles generally

accepted in India, of the state of affairs (financial position) of the company as at 31st March, 2020, and its

losses (financial performance) and its cash flows for the year ended on that date.

We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs)

specified under section 143(10) of the companies Act, 2013. Our responsibilities under those standards are

further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our

report. We are independent of he Company in accordance with the code of Ethics issued by the Institute of

Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the

financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we

have fulfilled our other ethical responsibilities in accordance with these requirements and the code of Ethics.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

opinion.

We draw attention to Note no. 23B(3) (i) of the Financial Statements which indicates that the company's net

worth has got eroded as of March 31, 2020 and the company;s current liabilities exceeded its current assets

and negative cash flows along with ensuing commitment for repayment of Long Term loans. These

conditions, along with other matters as stated in said note, indicate that a material uncertainty exists that

may cast doubt on the company's ability to continue as a going concern.

Our report is not modified in respect of this matter.

29

Emphasis of Matter

Without modifying our opinion, attention is drawn to following matters :-

a) Reference is invited to Note no. 23B3 9ii) to the financial statements, wherein the company has initiated a

restructuring process, whereby the transmission and distribution business along with its related assets,

liabilities & claims of the Company have been transferred at book value on slump sale basis to WBSETCL &

WBSEDCL ( transferee companies) by way of slump sale transaction agreement with transferee

companies with effect from 1st January, 2019

b) Reference is invited to Note No. 20(i), the company has credited Rs. 15318.84 lakhs (FY 2018-19 Rs.

17422.00 Lakhs) to the Profit and Loss account and a balance of regulatory assets in respect of financial

years from 2014-15 to 2018-19 amounting to Rs. 74765.84 lakhs (FY 2018-19 Rs. 59447.00 lakhs), as

shown under exceptional items and Regulatory Assets respectively and realisable through Regulatory

Mechanism as per regulation off West Bengal Electricity Regulatory Commission (WBERC). However, the

relevant orders facilitating the credit have not yet been received from WBERC. In case of any variations in

the order of WRERC as against the amount estimated by the Company, there may be change in the

balances of accumulated losses and regulatory assets, but effect not ascertained.

c) Reference is invited to Note No. 3(a) (ii) to the financial statements, wherein pending finalisation of

repayment terms the loans from Government of West Bengal amounting to Rs. 39169.32 lakhs and from

Central Electricity Authority amounting to Rs. 1181.00 lakhs have been considered to be of long term in

nature.

d) Reference is invited to Note No. 2(ii) and 10(c) (i) to the financial Statements, wherein compliance with

regulation No. 48 on Terms and conditions of Tariff Order, 2011 issued by West Bengal Electricity

Regulatory Commission, the Company has created Reserve for Unforeseen Exigencies amounting to Rs.

9002.75 lakhs against which investment amounting to Rs. 728.97 lakhs only has been made in Term

deposit with Banks.

e) Reference in invited to Note No. 10 (a) (ii) to the financial statements, wherein pending physical verification

of stores and spares, the discrepancy between book balance and physical stock, if any, has not been

identified and adjusted in the Financial statements, whose effect is not ascertained.

f) Reference is invited to Note No. 4 (b) (ii) and 23B (3) (iii) to financial statements, Balances of Coal

Companies, Security Deposit, Advance received / paid, claims recoverable, Advance to contractors /

suppliers / others, Trade Receivable, Trade payables are subject to the exercise of reconciliation and

confirmation. Necessary accounting adjustment, required if any, will be post completion of the said

exercise.

g) As more fully described in Note No. 24 to the Statement, to assess the recover ability of certain assets, the

Company has considered internal and external information up to the date of this report in respect of the

current indicators of future economic conditions consequent to the global health pandemic COVID - 19.

h) Reference is invited to Note 23B (6) in respect of un - reconciled balances of WBSEDCL and consequently

was not netted off he debit balance with liabilities.


30

M. C. Bhandari & Co. Chartered Accountants

Other Information

Responsibilities of Management and Those Charged with Governance for the Financial Statements.

Auditor's Responsibilities for the Audit of the Financial Statements

The Company's management and Board of Directors are responsible for the other information. The other

information comprises the information the information included in the Directors' report Management

Discussion & Analysis etc, but does not include the financial statements and our auditor's report thereson.

Such other information's are expected to be made available to us after the date of this auditor's report. Our

opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information

identified above when it becomes available and , in doing so, consider whether the other information is

materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise

appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are

required to communicate the matter to those charge with governance and take appropirate actions necessitate

by the Circumstances and the appllicable laws and regulations.

The Company's Board of Directors is responsible for the matters stated in section 134 (5) of the Companies

Act, 2013 ("the Act|) with respect to the preparation of these financial statements that give a true and fair view of

the financial position, financial performance, and cash flows of the company in accordance with the accounting

principles generally accepted in India, specified under section 133 of the Act. This responsibility also includes

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

the assets of the Company and for preventing and detecting frauds and other irregularities; selection and

application of appropriate accounting policies; making judgments and estimates that are reasonable and

prudent; and design, implementation and maintenance of adequate internal financial controls, that were

operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the

preparation and presentation of the financial statements that give a true and fair view and are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability

to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease

operations or has no realistic alternative but to do so. Board of Directors are also responsible for overseing the

Company's financial reporting process.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee, that an audit conducted in

accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected

to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional

scepticism throughout the audit. We also :

31

?Identity and assess the risks of material misstatement of the financial statements, whether due to fraud or error,

design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from

fraud is higher than for one resulting from error, as fraud may invlove collusion, forgery, intentional omissions,

misrepresentations, o the override or internal control.

?Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances. Under Sectio. 143(3)(i) of the Companies Act, 2013, we are also responsible

for expressing our opinion on whether the company has adequate internal financial controls system in place

and the operating effectiveness of such controls.

?Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates

and related disclosures made by management.

?Conclude on the appropriateness of management's use of the going concern basis, based on the audit

evidence obtained, whether a material uncertainty exists related to events or conditions that may cast

significant doubt on the Company's ability to continue as a going concern. It we conclude that a material

uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the

financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on

the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may

cause the company to cease to continue as a going concern.

?Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,

and whether the financial statements represent the underlying transactions events in a manner that achieves

fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit. We also provide those charged with governance with a statement that we have complied

with relevant ethical requirements regarding independence, and to communicate with them all relationships and

other matters that may reasonably be thought to bear on our independence, and where applicable related

safeguards.

i) As required by the Companies (Auditor's Report) Order, 2016 ('the Order') issued by the Central Government

of India in terms of Sub - Section (11) of Section 143 of the companies Act, 2013, and on the basis of such

checks of the books and records of the company as we considered appropriate and according to the

information and explanations given to us, we give in 'Annexure A' a statement on the matters specified in

paragraphs 3 and 4 of the Order, to the extent applicable.

ii) As required by the section 143 (5) of the Act, we give in ' Annexure B' a statement on the matters specified by

the office of the Principal Accountant General for the Company.

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

a) We have sought and obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purposes of our audit.

b) In our opinion, proper books of account as required by law have been kept by the company so far as it

appears from our examination of those books.

c) The Balance sheet, the statement of Profit and loss and the cash flow statement dealt with by this report are

in agreement with the books of account.

Report on other Legal and Regulatory Requirements

32

d) In our opinion, the aforesaid financial statements comply with the accounting Standards specified under

section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014

e) In terms of notification on G. S. R 463 (E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, the

provisions of Section 164 (2) of the Act regarding disqualification of Directors are not applicable to a

Government company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and

the operating effectiveness of such controls, refer to our separate report in 'Annexure - C'.

g) The matter described under material uncertainty related t Going concern paragraph may have an adverse

effect on the functioning of the company.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the

companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our knowledge and belief and

the information and according to the explanations given to us :

i) The company has disclosed the impact of pending litigations on its financial position in its financial

statements Refer Note no. 22 to the financial statements.

ii) The company did not have any long - term contracts including derivative contracts for which there are no

material foreseeable losses.

iii) There were no amounts which were required to be transferred to the investor Education and protection

Fund by the Company.

For M. C. Bhandari & Co.Chartered AcountantsFirm Registration No. 303002E

CA. Neeraj- Jain(Partner)(Membership No. 064393)UDIN 20064393AAAABDU6195

Place: KolkataDate : 27th November, 2020


33


Annexure A to the independent Auditor's Report

Referred to in paragraph (i) under the heading '' Report on Other Legal and Regulatory Requirements'' of our Report.

1. a) The Company is maintaining records of Fixed Assets showing particulars but not showing quantitative

details, situation of fixe assets and identification marks which need to be updated in Fixed Assets

Register

b) As informed to us, the fixed Assets in respect of Furniture / fixture and Office equipment only elating to

its Administrative office and Plant Offices have been physically verified by the management and same

is under the process of reconciliation. Pending such reconciliation, discrepancies, if any are not

identified and adjusted. In Our opinion, all he fixed assets should be verified by the management ove a

reasonable period of time.

c) In our opinion and according to the information and explanations given to us, the total area of freehold

land in the possession of the Company as on 31.03.2020 was 2977.585 acres. Out of total Land

measuring 3103.634 acres as on 31.03.2019, 126.049 acres were transferred to WBSEDCL &

WBSECTCL. The land record updation is still in process. Mutation of land measuring 857.16 acres was

completed out of total unmuted land measuring 1067.04 acres. Mutation of balance land at Mouza

Gopinathpur (JL-85) is under process. The leasehold Land as on 31.03.2019 is 4.039 acres, out of

which 3.449 acres were transferred to WBSEDCL. However the relevant lease transfer is pending.

Deeds off conveyance in respect of Land transferred to WBSEDCL and WBSETCL are yet to be

executed.

The deeds of freehold land measuring 36.65 acres have been mortgaged with the lenders and as such

not made available to us for verification.

2. a) During the period under audit, Physical verification of Raw Materials (Coal) only has been conducted by

the management. Inventory of Stores & Spares and finished goods have not been physically verified by

management during the year. Stores and Spares of plants other than Power Plant were last physically

verified on 31st March 2015. Those for Power Plant have been carried out on 31st March 2018.

b) Since Stores & Spares, Finished goods etc remains physically unverified during the year, the

discrepancies, if any, remains unidentified and adjusted.

3. According to the information and explanations given to us, the Company has not granted any loan, secured

or unsecured to companies, firms, limited liability partnerships or other parties covered in the register

required under section 189 of the Companies Act, 2013. Accordingly, Paragraph 3 (iii) (a), (iii) (b) and (iii) (c)

of the Order is not applicable.

4. In our opinion and according to the information and explanations given to us, the company has not given

any loans, made any investments provided any guarantees, and given any security to which the provisions

of section 185 and 186 of the Companies Act, 2013 are applicable.

5. In our opinion and according to the information and explanations given to us, the Company has not

accepted any deposits and accordingly paragraph 3(V) of the Order is not applicable.

7. The maintenance of cost records has been prescribed for Electricity Industry (Power Plant) for this

company by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, We

34


have broadly reviewed the cost records maintained by the company pursuant to the above rules and we are

of the opinion that prima facie, the prescribed accounts and records are maintained.

7. a) According to information and explanations given to us and the records of the Company examined by us,

the Company is generally regular in depositing undisputed statutory dues including provident fund

Income-Tax, Goods & Service Tax, Duty of Customs and any other statutory dues as applicable, with

the appropriate authorities. The Company has provided liability on account of additional Dearness

Allowance (DA) for the period from January 2014 to August 2019 arises on account of promotion given

to employees under Carrier Progression Scheme (CPS). Since such DA has not been paid,

consequent provident fund liability has not been deposited with relevant authority. Further, an amount

of Rs. 5332.23 lacs on account of interest for payment of electricity duty is pending for payment for

more than six months.According to the information and explanations given to us, no undisputed amount except for interest on

electricity duty as referred above is payable in respect of the aforesaid statutory dues, for a period of six

months from the date they become payable.

b) According to the information and explanations given to us, the following dues of Sales Tax, CST,

Service Tax, Duty of Excise and Value Added Tax have not been deposited by the Company on account

of disputes :(Rs in lakhs)

Name of Nature of Amount Period Forum where pendingstatute Dues

Central Excise Demand of 2620.89 03/2011 to 12/2015 CESTAT, KolkataAct 1944 Excise Duty

Central Excise Demand of 355.26 2013-14 to 2016-17 Commissioner (Appeals)Act 1944 Excise Duty CGST, Siliguri, And

Adjudicating Authority

Service Tax Demand of 694.97 2006-07 to 2016-17 Commissioner (Appeals)Service Tax CGST, Siliguri, and

Adjudicating Authority

Service Tax Demand of 98.53 2005-06 to 2012-13 CESTAT, KolkataService Tax

WB Value Demand of 74.68 2000-01 to 2003-04 Asst. Commissioner of Added Tax Value Added Commercial Taxes

Tax (Appeals) / Durgapur

Central Sales Demand of 36.14 2003-04 Asst. Commissioner of Tax Central Sales Commercial Taxes

Tax (Appeals) / Durgapur

8. In our opinion and according to the information and explanations given to us, the company has not

defaulted in repayment of dues to any financial institutions , bankers, and government or debenture holders

during the year other than the following amounts :

35


Sl. Name of the Body Nature of Principal Interest PeriodNo. Loan

1. Government of West Bengal Term Loan 39169.32 41809.50 1985 to 2020

2. Central Electricity Authority Term Loan 1181.00 4727.09 1985 to 2020

Total 40350.32 46536.59

9. Based upon the audit procedures performed and the information and explanations given by the management,

the company has not raised any moneys by way o initial public offer or further public offer including debt

instruments . On the basis of review of utilization of funds pertaining to term loans taken by the Company we are

of the opinion that the funds have been applied for the purpose for which they were obtained.

10. According to the information and explanations given to us and as represented by the management and based

on our examination of the books and records of the Company carried out in accordance with the generally

accepted auditing practices in India, we have not come across any instances of fraud by the company or on the

company by its officers orr employees, notices or reported during the year, nor we have been informed of any

such case by the management.

11. According to the information and explanations given to us, requirement o the provisions of section 197 read with

Schedule V to the Companies Act with respect to managerial remuneration is not applicable to Government

company vide Notification dated 5th Jue 2015 of Ministry off corporate affairs.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi

Company. Accordingly, paragraph (xii) off the order is not applicable.

13. According to the information and explanations given to us and based on our examination o the records of the

Company, transactions with the related parties are in compliance with section 188 of the Companies Act, 2013

and the details of such transactions have been disclosed in the financial statements of the Company as required

by the applicable accounting standards.

14. According to the information and explanations given to us and based on our examination fo the records of the

company, the company has not made any preferential allotment or private placement of shares or fully or partly

convertible debentures during the year. Accordingly, paragraph (xiv) of the Order is not applicable.

15. According to the information and explanations given to us and based on our examination of the records of the

Company, the company has not entered into non-cash transaction with directors or persons connected with

them. Accordingly, paragraph (xv) of the order is not applicable.

16. According to the information and explanations given to us and based on our examination of the records of the

company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act,

1934.

For M. C. Bhandari & Co.Chartered AccountantsFirm registration No. 303002E

CA Neeraj Jain(Partner)(Membership No. 064393)UdIN : 20064393AAAABDO6195

Place : KolkataDate : 27th November, 2020

36


Annexure B

Referred to in paragraph (ii) under the heading '' Report on Other Legal and Regulatory Requirements'' of ourr Report of even date.

General directions under section 143(5) of the companies act, 2013 for the year ended 31st March 2020.

SlNo.

Questionnaires Remarks

1. Whether the Company has system in place to process all the accounting transactions through IT system ? If yes, the implications of precessing of accounting transactions outside IT system on the integrity of accounts along with the f inancial implications, if any, may be stated.

Presently the company has old information technology application system comprising of different modules / software applicable to different business process, and none of those modules / software are integrated and interfaced, which could potentially result into errors / omissions in financial data processing.However, it is informed that the company has undertaken the implementation of a linked system through new modules of software and same is yet to be commissioned and operationalised.

2. Whether there is any restructurring of an existing loan or cases of walver / write off of debts / loans / interest etc. made by a lender to the company due to the company's inability to repay the loan ? If yes, the financial Impact may be stated.

Whether funds received / receivable for specific schemes from central / state agencies were properly accounted for / utilized as per the terms and conditions ? List the case of deviation

During the period under audit, no restructuring off existing loan or waiver / write off of loans or interest by the lenders has been done for the company.

Pursuant to restructuring scheme, the company has receive an amount of Rs. 134.00 lakhs from Government of West Bengal for fencing around the land of the company. Out of the said amount, no money was utilized during current FY 2019-20

3.




37


Sector specific sub-directions under section 143(5) of the Companies Act, 2013 for the year 2019-20

SlNo.


1. Adequacy of steps to prevent encroachment of idle land owned by the company may be examined. In case land of the company is encroached, under litigation, not put to use of declared surplus, details may be provied

On the basis of information and explanation given to us we noted that around 44 acres of land are under unauthorized occupation refer not no. 5(a) 9i)




38

M. C. Bhandari & Co. Chartered Accountants

Annexure C

Referred to in paragraph (iii)(f) under the heading '' Report on Other Legal and Regulatory

Requirements'' of our Report of even date of member, of the Durgapur Projects Limited :-

Management's Responsibility for Internal Financial Controls

Auditors' Responsibility

Meaning of Internal Financial Controls over Financial Reporting

Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the

Companies Act, 2013, ('the Act')

We have audited the internal controls over financial reporting of the Durgapur Projects Limited ('the company')

as of 31st March, 2020 in conjunction with our audit of the financial statements of the Company for the year

ended on that date.

The company's management is responsible for establishing and maintaining internal financial controls based on

the internal control over financial reporting criteria established by the company considering the essential

components of internal control stated in the guidance note on audit of internal financial controls over financial

reporting issued by the Institute off Chartered Accountants of India ('ICAI'). These responsibilities include the

design, implementation and maintenance of adequate internal financial controls that were operating effectively

for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the

safeguarding of its assets the prevention and detection o frauds and errors, the accuracy and completeness of

the accounting records, and the timely preparation of reliable financial information, as required under the

companies Act, 2013.

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting

based on our audit. We conducted our audit in accordance with the guidance note on audit off internal financial

controls over financial reporting ( the 'Guidance Note') and the standards on auditing (the 'Standards') issued by

ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to

an audit of internal financial controls. Those standards and the Guidance Note require that we comply with

ethical requirements and plan an perform the audit to obtain reasonable assurance about whether adequate

internal financial controls over financial reporting was established and maintained and if such controls operated

effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial

controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls

over financial reporting included obtaining an understanding of internal financial controls over financial

reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and

operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the

auditor's judgement, including the assessment of the risks of material misstatement of the financial statements,

whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and apporopriate to provide a basis for our

audit opinion on the company's internal financial controls over financial reporting.

A Company's internal financial control over financial reporting is a process designed to provide reasonable

39

assurance regarding the reliability of financial reporting and the preparation of financial statements for external

purposes in accordance with generally accepted accounting principles. A company's internal financial control

over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that,

in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;

(ii) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial

statements in accordance with generally accepted accounting principles, and that receipts and expenditures of

the company are being made only in accordance with authorizations of management and directors off the

company; and (iii) provide reasonable assurance regarding prevention or timely election of unauthorized

acquisition , use of disposition of the company's assets that could have a material effect on the financial

statements.

Because of the inherent of internal financial controls over financial reporting, including the possibility of collusion

or impreper management override. Also projections of any evaluation of the internal financial controls over

financial reporting to future periods are subject to the risk that the internal financial control over financial reporting

may become inadequate because of changes in conditions, or that the degree of compliance with the policies or

procedures may deteriorate.

i) The company have documented manual for the different components of the established internal control

but those required updating and implementation commensurate with the present needs and objectives of

financial reporting :

ii) Presently the company has old information technology application system comprising of different

modules / software applicable to different business process, and none of those modules / software are

integrated / interfaced with each other, which could potentially result into errors / omissions in financial

data processing however, the financial effect, if any not ascertained.

iii) Stock of Stores and spares, finished goods and that of fixed assets, were not physically verified since long

time entailing the internal control risk;

iv) The company has not updated and also reconciled party wise subsidiary / sectional ledger under

Receivable and payable, stores Ledger, Advances & claims recoverable, Security Deposit and Liabilities

for Expenses, as such the financial effect, if any not ascertained.

A 'material weakness' is a deficiency, or a combination of deficiencies, in internal financial control over financial

reporting , such that there is a reasonable possibility that a material misstatement of the company's annual or

interim financial statements will not be prevented or detected on a timely basis.

In our opinion, the company has maintained in all material respects adequate internal financial control systems

over financial reporting and such internal financial controls over financial reporting were operating effectively as

at 31st March, 2020 on criteria based on or considering the essential components of internal control stated in the

Guidance Note on Audit of internal Financial Controls Over Financial Reporting issued by the institute of

Chartered Accountants of India except for the possible effects of the material weaknesses described above on

Inherent Limitations of Internal Financial Controls over Financial Reporting

Qualified Opinion

According to information and explanation given to us and based on our audit, the following material

weaknesses have been identified as at 31st March 2020:


40

the achievement of the objectives of the control criteria.

We have consiered the material weaknesses identified and reported above in determining the nature, timing, and

extent of audit tests applied in our audit of the financial statements of the company and these material

weaknesses does not affect our opinion on the financial statements of the Company.





41

REPLIES TO THE INDEPENDENT AUDITOR'S REPORT ON THE ACCOUNTSFOR THE YEAR ENDED 31st MARCH, 2020

INDEPENDENT AUDITORS' REPORT TO THE MEMBERSMANAGEMENT REPLIES TO

THE COMMENTS

Report on the Audit of the Financial Statements Opinion

We have audited the financial statements of the Durgapur

Projects Limited ('the company') which comprises the

Balance Sheet as at 31st March, 2020, and the Statement of

Profit and Loss, and Statement of Cash Flows for the year

then ended, an notes to the financial statements, including

summary of significant accounting policies and other

explanatory information ('the statement')

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements along with the notes thereon, give the information required by the companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the company as at 31st March 2020, and its losses ( financial performance) and its cash flows for the year ended on that date.)

General Observation, nothing to comment

Basis for Opinion

We conducted our audit of the financial statements in accordance with the standards on auditing (SAs) specified under section 143(10) of the companies Act, 2013. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are inepenent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the finanial statements under the provisions of the Companies Act, 2013 and the Rules there under , and we have requirements and code of Ethics. We believe that the audit evidence we have obtained is sufficient an appropriate to provide a basis for our opinion.


Material Uncertainty related to Going Concern

We draw attention to Note no. 23B(3) (i) of the financial statements which indicates that the company's net worth has got eroded as of March 31, 2020 and the company's current liabilities exceeded its current assets and negative cash flows along with ensuring commitment for repayment of Long Term loans, These conditions, along with other matters as stated in said note, indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern.

Our report is not modified in respect of this matter

As referred to in the Auditors' Report, Note 23B(3)(i) explains as to why the management considers that the company's continuation on sustainable going concern basis will not be affected.

42

Emphasis of Matter

Without modifying our opinion, attention is drawn to following matters :

a) Reference is invited to Note no. 23B3 (ii) to the financial statements, wherein the company has initiated a restructuring process, whereby the transmission and distribution business along with its related assets, liabilities & claims of the company have been transferred at book value on slump sale basis to WBSETCL & WBSEDCL ( transferee companies) by way of slump sale transaction agreement with transferee companies with effect from 1st January 2019.

b) Reference is invited to Note No, 20(i), the company has credited Rs. 15318.84 lakhs (FY 2018-19 Rs. 17422.00 lakhs) to the profit and loss account an a balance of regulatory assets in respect of financial years from 2014-15 to 2018-19 amounting to Rs. 74765.84 lakhs (FY 2018-19 Rs. 59447.00 lakhs) as shown under exceptional items an Regulatory Assets respectively and realisable through Regulatory Mechanism as per regulation of West Bengal Electricity Regulatory Commission (WBERC). However, the relevant orders facilitating the credit have not yet been received from WBERC. In case of any variations in the order of WRERC as against the amount estimated by the company, there may be change in the balances of accumulated losses an regulatory assets, but effect not ascertained.

c) Reference is invited to Note No. 3(a) (ii) to the financial statements, wherein pending finalisation of repayment terms the loans from Government off West Bengal amounting to Rs. 39169.32 lakhs and from Central Electricity Authority amounting to Rs. 1181.00 lakhs have been considered to be of long term in nature.

d) Reference is invited to Note 2 (ii) an 10(c) (i) to the financial Statements, wherein compliance with regulation No 48 on Terms an Conditions of Tariff Otder, 2011 issued by West Bengal Electricity Regulatory Commission, the Company has create Reserve for Unforeseen Exigencies amounting to Rs. 9002.75 lakhs against which investment amounting to Rs. 728.97 lakhs only has been made in Term deposit with Banks.

e) Reference is invited to Note No. 10(a) (ii) to the financial statements, wherein pending physical verification of stores and spares, the discrepancy between book balance and physical stock, if any, has not been identified and adjusted in the financial statements, whose effect is not ascertained.

f) Reference is invited to Note No. 4(b) (ii) and 23B (3) (iii) to financial statements, Balances of Coal Companies, Security Deposit, Advance receive / Paid claims recoverable, Advance to contractors / suppliers / others, Trade Receivable, Trade payables are subject to the exercise of reconciliation and confirmation. Necessary accounting adjustment require if any, will be post completion of the said exercise.

Whereas, the Slump Transaction Agreement with WBSETCL was conclued on 11 Aprril 2019, that with WSEDCL was one on 30 Sept. 2019

No further comment than what has been already stated in the referred note.





43

g) As more fully described in Note no. 24 to the statement, to assess the recoverability of certain assets, the Company has considered internal and external information up to the date of this report in respect of the current indicators of future economic conditions consequent to the global health Pandemic COVID 19.

h) Reference is invite to Note 23B (6) in respect of un-reconciled balances of WBSEDCL and consequently was not netted off the debit balance with liabilities.


General Observation nothing to comment



Other Information

The Company's management an Board of Directors are

responsible for the other information. The other information

comprises the information included in the Director's report,

Management Discussion & Analysis etc, but does not

include the financial statements and our auditors report

thereon. Such other Information's are expected to be made

available to us after the date of this auditor's report. Our

opinion on the financial statements does not cover the other

information and we do not express any form assurance

conclusion thereon.

In connection with our audit of the financial statements, our

responsibility is to read the other information identified

above when it becomes available and, in doing so, consier

whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the

audit, or otherwise appears to be materially misstated.

When we read the other information, if we conclude that

there is a material misstatement therein, we are required to

communicate the matter to those charged with governance

and take appropriate actions necessitate by the

circumstances and the applicable laws an regulations.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

The Company's Board of Directors is responsible for the

matters stated in section 134(5) of the Companies Act, 2013

(the Act) with respect to the preparation of these financial

statements that give a true and fair view of the financial

position, financial performance, an cash flows of the

Company in accordance with the accounting principles

generally accepted in India, specified under section 133 of

The Act. This responsibility also includes maintenance of

adequate accounting records in accordance with the

provisions of the Act for safeguarding of the assets of the

company and for preventing an detecting frauds and other

irregularities; selection an application of appropriate

44

accounting policies; making judgments and estimates that

are reasonable and prudent; and design, implementation

and maintenance of adequate internal financial controls,

that were operating effectively for ensuring the accuracy

and completeness of the accounting records, relevant to

the preparation and presentation of the financial statements

that give a true and fair view and are free from material

misstatement, whether due to fraud or error.

In preparing the financial statements the Board of Directors

is responsible for assessing the Company's ability to

continue as a going concern, disclosing, as applicable,

matters related to going concern and using the going

concern basis of accounting unless the Board off Directors

either intends to liquidate the Company or to cease

operations, or has no realistic alternative but to do so. Board

off directors are also responsible for overseeing the

Company's financial reporting process.

Auitor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level off assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably by expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism through out the audit We also:

?Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

?Obtain an unerstanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143 (3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.


45

?Evaluate the appropriateness of accounting policies use and the reasonableness of accounting estimates and related disclosures made by management.

?Conclude on the appropriateness of management's use of the going concern basis, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

?Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied wi th relevant ethical requirements regarding independence, an to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable related safeguards.

Report on Other Legal and Regulatory Requirements

i) As required by the Companies ( Auditor's Report) Order, 2016 ('the Order') issued by the Central Government of India in terms off sub -section (11) of section 143 of the Companies Act, 2013, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we given in 'Annexure A' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

ii) As required by the Section 143 (5) of the Act, we give in 'Annexure B' a statement on the matters specified by the Office of the Principal Accountant General for the Company.

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

a) We have sought an obtained all the information and explanations which to the best off our knowledge and belief were necessary for the purposes of our audit.

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





46

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books off account.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014.

e) In terms of notification on G.S. R. 463 (E) date 5th June 2015 issued by the Ministry off Corporate Affairs the provisions of Section 164(2) of the Act regarding disqualification of Directors are not applicable to a Government Company.

f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in ' Annexure C'.

g) The matter described under material uncertainty related to Going Concern paragraph may have an adverse effect on the functioning of the Company

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion an to the v8ubest of our knowledge and belief an the information and according to the explanations given to us :

i) The Company has disclose the impact of pending litigations on its financial position in its financial statements Refer Note no . 22 to the financial Statements :

ii) The Company did not have any long - term contracts including derivative contracts for which there are no material foreseeable losses.

iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.








Dated : 27th November, 2020Place : Kolkata

For M C Bhandari & Co.Chartered Accountants

(FRN - 303002E)

CA. N. Jain(Partner)

(Membership No. 064393)

(Goutam Biswas)Managing Director

(Pranab Kumar Das Sharma)Director

(P. K. Mitra)Advisor (F & A) & CFO

47

Annexure - A to the Independent Auditor's ReportReferred to in paragraph 1 under the heading 'Report on Other Legal and Regulatory

Requirements' of our Report

SlNo.

INDEPENDENT AUDITORS' REPORT TO THEMEMBERS

MANAGEMENT REPLIES TOTHE COMMENTS

1 The Company is maintaining records of Fixed Assets Showing particulars but not showing quantitative details situation of fixed assets and identification marks which need to be updated in Fixed Assets Register.

(b) As informed to us, the Fixed Assets in respect to Furniture / Fixture an Office equipment only relating to its Administrative office and plant offices have been physically verified by the management and same is under the process of reconciliation. Pending such reconciliation, discrepancies, if any are not identified a adjusted. In our opinion, all the fixed assets should be verified by the Management over a reasonable period of time.

(c) In our opinion and according to the information and explanations given to us, the total area of freehold land in the possession of the Company as on 31.03.2020 was 2977.585 acres. Out of total Land measuring 3103.634 acres as on 31.03.2019, 126.049 acres were transferred to WBSEDCL & WBSECTCL. The land record updation is still in process. Mutation of land measuring 857.16 acres was completed out of total unmuted land measuring 1067.04 acres. Mutation of balance land at Mouza Gopinathpur (JL - 85) is under process. The leasehold land as on 31.03.2019 is 4.039 acres, out of which 3.449 acres were transferred to WBSEDCL. However, the relevant lease transfer is pending. Deeds of conveyance in respect of Land Transferred to WBSEDCL and WBSETCL are yet to be executed.

The deeds of freehold land measuring 36.65 acres have been mortgaged with the lenders and as such not made available to us for verification.

2 During the period under audit, Physical verification of Raw Materials (Coal) only has been conducted by the management. Inventory of Stores & Spares and finished goods have not been physically verified by management during the year. Stores and Spares of plants other than Power Plant were last physically verified on 31st March 2015, Those for Power Plant have been carried out on 31st March 2018.

(a)

The Observation is an per the existing status coming down since long past. A programme will be undertaken in future to suitably address the situation.

Physical verification of fixed assets has already been carried out for Water W o r k s , C e n t r a l W o r k s h o p , Administrative Building and Plant Offices during 2016-17 & 2017-18. The same have been carried out during 2018-19 for water Works, Administrative office and plant offices in respect of Furn i ture , F ix tures and off ice Equipments. During the year 2019-20 physical verification of Fixed Assets have been carried out in respect of Furniture / Fixture and office Equipment relating Administrative office and plant Off ice a lso. These are under r e c o n c i l i a t i o n , a n d n e c e s s a r y adjustments, if any, will be made accordingly.

The observations are statement of facts only.

The observations are statement of facts only.(a)

48

(b) Since Stores & Spares, Finished goods etc remains physically unverified during the year, the discrepancies if any, remains unidentified and adjusted.

3. According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register required under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii) (a), (iii) (b) and (iii) (c) of the Order is not applicable.

4. In our opinion and according to the information and explanations given to us, the Company has not given any loans, made any investments, provide any guarantees, and given any security to which the provisions of section 185 and 186 of the Companies Act, 2013 are applicable.

5 In our opinion and according to the information and explanations given to us, the company has not accepted any deposits and accordingly paragraph 3 (v) of the Order is not applicable.

6. The maintenance of cost records has been prescribed for Electricity Industry (Power Plant) for this company by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, we have broadly reviewed the cost records maintained by the company pursuant to the above rules and we are of the opinion that prima facie, the prescribed accounts and records are maintained.

7. According to information and explanations given to us and the records of the Company examined by us, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Income-Tax, Goods & Service Tax, Duty of Customs and any other statutory dues as applicable, with the appropriate authorities. The company has provided liability on account of additional Dearness Allowance (DA) for the period from January 2014 to August 2019 arises on account of promotion given to employees under Carrier Progression Scheme (CPS). Since such DA has not deposited with relevant authority. Further, an amount of Rs. 5332.23 lacs on account of interest for delay payment of electricity duty is pending for payment for more than six months.

According to the information and explanations given to us, no undisputed amount except for interest on electricity duty as referred above is payable in respect of the aforesaid statutory dues, for a period of six months from the date they become payable.

The Observations are statement of facts only.




(a)



49

b) According to the information and explanations given to us, the following dues of Sales Tax, CST, Service Tax, Duty of Excise and Value Added Tax have not been deposited by the Company on account of disputes :

Nature Nature of Amount Period Forum Whereof Statute Dues Pending

Central Demand 2620.89 03/2011 CESTATExcise of Excise to KolkataAct 1944 Duty 12/2015

Central Demand 355.26 2013-14 CommissionerExcise of Excise to (Appeals) CGSTAct 1944 Duty 2016-17 Siliguri and

AdjudicationAuthority

Service Demand 694.97 2006-07 CommissionerTax of Service to (Appeals) CGST

Tax 2016-17 Siliguri andAdjudicatingAuthority

Service Demand 98.53 2005-06 CESTATTax of Service to Kolkata

Tax 2012-13

WB Value Demand 74.68 2000-01 Asst.Added of Value to CommissionerTax Added 2003-04 Taxes (Appeals) /

Tax Durgapur

Central Demand 36.14 2003-04 Asst.Sales of Central CommissionerTax Sales Tax of Commercial

Taxes(Appeals) /Durgapur

8. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institutions, bankers, and government or debenture holders during the year other than the following amounts :

Sl. Name of the Nature of Principal Interest PeriodNo. Body the Loan

1. Government of Term 39169.32 41809.50 1985 toWest Bengal Loan 2020

2. Central Electricity Term 1181.00 4727.09 1985 toAuthority Loan 2020

Total 40350.32 46536.59

It has been disclosed in the Notes to the Accounts as Contingent Liability at Note - 22


50

9. Based upon the audit procedures performed and the information and explanations given by the management, he company has not raised any moneys by way of initial public offer or further public offer including debt instruments. On the basis of review of utilization of funds pertaining to term loans taken by the company we are of the opinion that the funds have been applied for the purpose for which they were obtained.

10. According to the information and explanations given to us and as represented by the management and based on our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have not come across any instances of fraud by the Company or on the Company by its officers or employees, notices or reported during the year, nor we have been informed of any such case by the management.

11. According to the information and explanations given to us, requirement of the provisions of section 197 read with schedule V to the Companies Act with respect to managerial remuneration is not applicable to Government company vide Notification dated 5th June 2015 of Ministry of corporate affairs.

12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph (xii) of the Order is not applicable.

13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 188 of the Companies Act, 2013 and the details of such transactions have been disclosed in the financial statements of the company as required by the applicable accounting standards.

14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or patly convertible debentures during the year. Accordingly, paragraph (xiv) of the Order is not Applicable.

15. According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with them. Accordingly paragraph (xv) of the Order is not applicable.








51

16. According to the information and explanations given to us and based on our examination of the records of the company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.


Dated : 27th November, 2020

Place : Kolkata


(FRN - 303002E)


(Membership No. 064393)UDIN : 20064393AAAABDU6195




52

ANNEXURE - B

Referred to in paragraph (ii) under the heading 'Report on Other Legel and Regulatory Requirements'of our Report of even date

General directions under section 143(5) of the companies act, 2013 for the year ended 31st March 2020

SlNo.


1. Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of accounts along with the financial implications, if any, may be stated.

Presently the company has old information technology

application system comprising of different modules /

software applicable to different business process, and

none of those modules / software are integrated and

interfaced, which could potentially result into errors /

omissions in financial data processing.However, it is informed that the company has undertaken

the implementation of a linked system through new

modules off software and same is yet to be commissioned

and operationalised.

During the period under audit, no restructuring of existing

loan or waiver / write off of loans or interest by the lenders

has been done for the company.

Pursuant to restructuring scheme, the company has

received an amount of Rs. 134.00 lakhs from Government

of West Bengal for fencing around the land of the

Company. Out of the said amount, no money was utilized

during current FY 2019-20

2. Whether there is my restructuring of an existing loan cases of waiver / write off off debts / loans / interest etc. made by a lender to the company due to the company's inability to repay the loan ? If yes, the Financial Impact may be stated.

3. Whether funds received / receivable for specific schemes from central / state agencies were properly accounted for / utilized as per the terms and conditions ? List the cases off deviation.


Place : Kolkata

For M C Bhandari & Co.Chartered Accountants(FRN - 303002E)

CA. N. Jain(Partner)(Membership No. 064393)UDIN : 20064393AAAABDU6195

53

Sector Specific Sub-directions under Section 143(5) of the Companies Act, 2013 for the Year 2019-20

SlNo.


1. Adequacy of steps to prevent encroachment of idle land owned by the company may be examined. In case land of the Company is encroached, under litigation, not put to use or declared surplus, details may be provided.

On the basis of information and explanation given to us we

noted that around 44 acres of land are under unauthorized

occupation. Refer Note no 5 (a) (i)


(FRN - 303002E)




Place : Kolkata

54

1.

The Company's management is responsible for

establishing and maintaining internal controls based on the

internal control over financial reporting criteria established

by the Company considering the essential components of

internal control stated in the guidance note on audit of

internal financial controls over financial reporting issued by

the Institute of Chartered Accountants of India ('ICAI').

These responsibilities include the design, implementation

and maintenance off adequate internal financial controls

that were operating effectively for ensuring the orderly and

efficient conduct of its business, including adherence to

company's policies, the safeguarding of its assets, the

prevention and detection of frauds and errors, the accuracy

and completeness of the accounting records, and the timely

preparation off reliable financial information, as required

under the Companies Act, 2013.

2.

Our responsibility is to express an opinion on the

Company's internal financial controls over financial

reporting based on our audit. We conducted our audit in

accordance with the guidance note on audit off internal

financial controls over financial reporting ( the 'Guidance

Note') and the standards on auditing (the 'Standards')

issued by ICAI and deemed to be prescribed under section

143 (10) of the Companies Act, 2013, to the extent

applicable to an audit of internal financial controls., Those

Standards and the Guidance Note require that we comply

with ethical requirements and plan and perform the audit to

obtain reasonable assurance about whether adequate

Management's Responsibility for Internal Financial

Controls

Auditor's Responsibility

ANNEXURE - C

Referred to in paragraph (iii) (f) under the heading ' Report on Other Legal and Regulatory Requirements' of our Report of even data to the member of the Durgapur Projects Limited.

Report on the Internal Financial controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ('the act')

We have audited the internal financial controls over financial reporting of The Durgapur Projects Limited ('the company') as of March 31, 2020 in conjunction with our audit of the standalone financial statements off the Company for the year ended on that date.

SlNo.

Independent Auditors Report to the Members Management Replies to the comments

We have audited the internal financial controls over financial reporting of the Durgapur Projects Limited ('The Company as of 31st March, 2020 in conjunction with our audit of the financial statements of the Company for the year ended on the date.




55

internal financial controls over financial reporting was

established and maintained and if such controls operated

effectively in all material respects.

Our audit involves performing procedures to obtain audit

evidence about the adequacy of the internal financial

controls system over financial reporting and their operating

effectiveness. Our audit of internal financial controls over

financial reporting included obtaining an understanding of

internal financial controls over financial reporting, assessing

the risk that a material weakness exists, and testing and

evaluating the design and operating effectiveness of

internal control based on the assessed risk. The procedures

selected depend on the auditor's judgement, including the

assessment of the risks off material misstatement of the

financial statement, whether due to fraud or error.

We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our audit

opinion on the Company's internal financial controls over

financial reporting.

3.

A Company's internal financial control over financial

reporting is a process designed to provide reasonable

assurance regarding the reliability of financial reporting and

the preparation of financial statements for external

purposes in accordance with generally accepted accounting

principles. A Company's internal financial control over

financial reporting includes those policies and procedures

that (i) pertain to the maintenance of records that, in

reasonable detail, accurately and fairly reflect the

transactions and dispositions of the assets of the company,

(ii) provide reasonable assurance that transactions are

recorded as necessary to permit preparation of financial

statement in accordance with generally accepted

accounting principles, and that receipts and expenditures of

the company are being made only in accordance with

authorizations of management and directors of the

company; and (iii) provide reasonable assurance regarding

prevention or timely detection of unauthorized acquisition

use, or disposition of the company's assets that could have

a material effect on the financial statements.

4.

Because of the inherent limitations of internal financial

controls over financial reporting, including the possibility of

collusion or improper management override of controls,

material misstatements due to error or fraud may occur and

not be detected. Also, projections of any evaluation of the

Meaning of Internal Financial Controls over Financial

Reporting

Interent Limitations of Internal Financial Controls over

Financial Reporting



56

internal financial controls over financial reporting to future

periods are subject to the risk that the internal financial

control over financial reporting may become inadequate

because of changes in conditions, or that the degree of

compliance with the policies or procedures may deteriorate

5.

i) The Company have documented manual for the

different components of the established internal control

but those required updation and implementation

commensurate with the present needs and objectives of

financial reporting.

ii) Presently the company has old information technology

application system comprising of different modules /

software applicable to different business process. and

none of those modules / software are integrated /

interfaced with each other, which could potentially result

into errors / omissions in financial data processing

However. However, the financial effect, if any not

ascertained.

iii) Stock of Stores and Spares, finished goods and that of

fixed assets, were not physically verified since long time

entailing the internal control risk;

Qualified Opinion

According to information and explanations given to us

and based on our audit, the following material

weaknesses have been identified as at 31st March 2020 :

The Procurement Manual for

Purchase and Works Orders

approved by the Board of Directors in n di ts 622 Meet ing he ld ono

15.10.2020 has been promulgated.

The existing Delegation of Power is

under modification process and will

be issued during the current year.

Stocks of Stores & Spares in respect

of Power Plant were last physically

verified as on 31/03/2018 and the

same for Water Works had also been

completed during 2018-19. The

required accounting provisions have

been made in the years 2017-18 and

2018-19, as necessary, pending

adjustments in the respective Stores

Ledgers. Those of other plant areas

were last physically verified as off

31.03.2015. The physical verification

of Fixed Assets are carried out on

rotational basis . The Physical

verification in respect of Water Works

and Furniture, Fixture and Office

Equipments at Administrative office

and plant offices has been completed

during 2018-19. During the current

year off 2019-20, Such verification has

also been done in respect of Furniture

/ Fixture in the Administration and

plant offices.

57

iv) The company has not updated and also reconciled

party wise Subsidiary / Sectional ledger under

Receivable and Payables, Store Ledger, Advances

& Claims Recoverable, Security Deposit and

Liabilities for Expenses;

A ' material weakness' is a deficiency, of a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, the Company has maintained in all

material respects, adequate internal financial control

systems over financial reporting and such internal

financial controls over financial reporting were operating

effectively as at 31st March, 2020 on criteria based on or

considering the essential components of internal control

stated in the Guidance Note on Audit of Internal

Financial Controls Over Financial Reporting issued by

the Institute of Chartered Accountants off India except

for the possible effects of the material weaknesses

described above on the achievement of the objectives of

the control criteria.

We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the company, and these material weaknesses does not affect our opinion on the financial statements of the Company.

The subsidiary ledgers in respect of Stores & Spares have been reconciled in respect of Stores based on physical verification reports as on 31/03/2018 for Power Plant and for other cases based on such verification as of 31/03/2015. Adjustments as necessary have also been made in the year 2017-18.The Differences obtained in respect of advances are at present under reconciliation between the control ledgers and Subsidiary Ledgers.The details regarding liabilities for expenses are booked through liability register maintained manually at present which are being upstaged to Oracle based System.



Place : KolkataFor M C Bhandari & Co.Chartered Accountants

(FRN - 303002E)






58


BALANCE SHEET AS AT 31st March' 2020

(Rupees in Lakhs)

ParticularsNoteNo.

Figures as at the end of theCurrent reporting period

Figures as at the end of thePrevisous reporting period

I. EQUITY & LIABILITIES(i) Share holder's Funds :

(a) Share Capital 1 181,529.00 130,100.00(b) Reserve & Surplus 2 (344,926.11) (163,397.11) (303,948.76) (173,848.76)

(ii) Share Application Money PendingAllotment [Refer Note -1(IV)] 51,429.00

2. Non-Current Liabilities(a) Long-Term Borrowing 3(a) 276,655.88 306,579.49(b) Other Long Term Liabilities 3(b) 40,402.67 40,396.45(c) Long Term Provision 3(c) 15,471.06 332,529.62 12,146.42 359,122.36

3. Current Liabilities :(a) Short-Term Borrowing 4(a) 10,797.62 3,921.49(b) Trade Payables 4(b) 44,060.06 44,926.05(c) Other-Current Liabilities 4(c) 133,487.55 78,629.75(d) Short-Term Provisions 4(d) 10,724.75 199,069.98 12,922.47 1,40,400.18

Total 368,202.49 3,77,102.78

II. ASSETS1. Non-Current Assets :

(a) Fixed Assets(i) Tangible Assets 5(a) 245,514.19 270,207.18(ii) Intangible Assets 5(b) 20.06 23.85(ii) Capital Work-in-Progress 5(c) 6,418.88 6,919.83

(b) Non-Current Investments 6 0.08 30.23(c) Deferred Tax Assets 7 - -(d) Long-Term Loans & Advance 8 - -(e) Other Non-current Assets 9 45.79 251,999.00 227.82 277,408.91

(2) Current Assets :(a) Inventories 10(a) 12,690.84 7,335.94(b) Trade Receivables 10(b) 15,434.36 17,142.72(c) Cash and Cash Equivalents 10(c) 4,471.26 6,591.91(d) Short-term loans and advances 10(d) 7,933.88 8.296.31(e) Other Current assets 10(e) 75,673.16 116,203.49 60,326.99 99,693.87

Total 368,202.49 377,102.78

31st March' 2020 31st March' 2019

Contingent Liabilities are disclosed at Note - 22Significant Accounting Policies & Other Disclosures are furnished at Notes : 23A, 23B, 23C, 24, 25 & 26



(P. K. Mitra)Advisor (F & A) & CFO CA. N. Jain

(Partner)(Membership No. 064393)

UDIN : 20064393AAAABDU6195Dated : 27th November, 2020Place : Kolkata


(FRN - 303002E)

In Terms of our Report of Even Date

59


STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2020

(Rupees in Lakhs)

Particulars Note No. Figures for the

Current ReportingPeriod

Figures for thePrevious Reporting

Period

2019-20 2018-19

I. Revenue From Operations 11 83,581.16 108,547.42II. Other Income 12 480.99 2,965.38III. Total Revenue ( I + II) 84,062.15 111,512.80IV. Expenses

Cost of Materials Consumed 13 62,384.38 58,568.40Purchase of Stock-in-Trade (Energy) -- 3,857.42Changes in Inventories of finished goodsWork-in-progress and Stock-in-Trade 14 -- --Employee benefits Expense 15 18,756.06 16,392.03Finance Costs 16 33,079.09 33,704.03Deprecition/Impairment and amortization 17 12,922.89 14,184.37expenseOther Expenses 18 11,394.43 19,201.22Prior Period Adjustments (net) 19 67.73 (542.63)

Total Expenses 138,604.58 145,364.84

V. PROFIT BEFORE EXCEPTIONAL &EXTRA ORDINARY ITEMS & TAX (III-IV) (54,542.43) (33,852.04)

VI Exceptional Items 20 15,318.84 17,422.00

VII. Profit Before Extra-Ordinary Items & Tax

(V- VI) (39,223.59) (16,430.04)

VIII Extraordinary Items

IX. Profit Before Tax (VII - VIII) (39,223.59) (16,430.04)

X. Tax Expense :

(1) Current Period -- --

(2) Deferred Tax -- --

XI Profit /( Loss ) For the Period (IX - X) (39,223.59) (16,430.04)

XII Net Profit / (Loss) Transferred to Reserve (39,223.59) (16,430.04)

& Surplus

Basic Earnings Per Share 21 (257.06) (126.29)

Diluted Earnings Per Share 21 (257.06) (126.29)

Contingent Liabilities are disclose at Note - 22

Significant Accounting Policies & Other Disclosures are furnished at Notes 23A, 23B, 23C, 24, 25 & 26

(Goutam Biswas)Managing Director (Pranab Kumar Das Sharma)

Director



UDIN : 20064393AAAABDU6195Dated : 27th November, 2020Place : Kolkata


(FRN - 303002E)


60

Cash Flow Form Operating ActivitiesProfit / (Loss) after Extraordinary Items and Tax : (39,223.59) (16,430.04)Adjustment for :Depreciation 12,922.89 14,185.00Interest Income (290.91) (543.69)Bad Debits & Provisions 42.40 7,649.62Interest Expenses 33,079.09 45,753.47 33,704.03 54,994.96

Operating Profit / Loss before Working Capital Changes: 6,529.88 38,564.92Adjustment for :Trade Receivables 1,665.97 (2,548.74)Other Receivables (14,801.70) (24,222.15)Inventories (5,354.91) 683.71Change-in-provisions 1,126.93 (402.80)Trade & Other Payables 16,211.50 (1,152.21) (45,867.51) – 72,357.48

Net Cash Flow from Investing Activities : 5,377.67 – 33,792.56

Cash Flow from Investing ActivitiesAddition to Fixed Assets (Including CWIP) (1,726.34) (3,154.17)Proceeds from Sale of Assets 14,001.18 --Diminution in Value of Investment 30.15 --Investment matured during the year -- 422.35Interest Income 290.91 543.69Net Cash Flow from Investing Activities : 12,595.90 (2,188.13)

Cash Flow From Financing ActivitiesProceeds from issue of Equity Share (Pending Allotment) - 51,429.00Proceeds from Consumers contribution & Capital Grant (1,887.77) 539.71Grant From Govt. of WB for Fencing in Land off DPL 134.00Proceeds from Loans 14,546.55 12,168.23Repayment of Loans (2,770.83) --Interest on Loan Paid (30,216.17) (29,768.00)Net Cash Glow from Financing Activities : (20,094.22) 34,368.94

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2,120.65) (1,611.76)

Cash and Cash Equivalents at the Beginning of the year 6,591.91 8,203.67

Cash and Cash Equivalents at the End off the year 4,471.26 6,591.91

Note : (i) The above Cash Flow Statement has been prepare under the 'Indirect Method' as set out in the Accounting Standard - 3 (AS - 3) on Cash flow Statement issued by Institute of Chartered Accountant of India.

Note : (ii) Cash Equivalents comprises of following balance sheet amount as per Note 10 (c) :

2019-20 2018-19

Cash & Cash EquivalentsImprest Cash, Cheques in hand and postage stamps 1.43 1.46Balance with Banks :In Current Account 55.97 984.63In other earmarked balance 3.50 1.59Other Bank Balance :Recurring Deposit with Scheduled Bank - 36.00Fixed Deposits with Original Maturity upto 3 months 516.27 1,451.51Fixed Deposits with Bank under IPDS 31.99 647.40Fixed Deposits with Original Maturity more than 3 months 212.70 1,253.69Fixed Deposits given as lien 2,025.74 1,916.28Margin Money 1,623.66 299.36

4,471.26 6,591.91


CASH FLOW STATEMENT

Particulars 2019-20 2018-19

(Goutam Biswas)Managing Director (Pranab Kumar Das Sharma)

Director



UDIN : 20064393AAAABDU6195

Dated : 27th November, 2020Place : Kolkata


(FRN - 303002E)


(Rupees in Lakhs)

61

INDEX TO NOTES

Note 1 Share Capital 62

Note 2 Reserve & Surplus 63

Note 3(a) Long Term Borrowings 64

Note 3(a)(i)(ii) Worksheet to Note 64

Note 3(b) Other Long Term Liabilities 64

Note 3(c) Long Term Liabilities 64

Note 3(c) Long Term Provisions 64

Note 4(a) Short Term Borrowing 66

Note 4(b) Trade Payable 66

Note 4(c) Other Current Liabilities 67

Note 4(d) Short Term Provisions 67

Note 5(a) Fixed Assets(Tangible) 69

Note 5(b) Capital Work-in-Progress 70

Note 5(c) Capital during Construction 70

Note 6 Non Current Investments 71

Note 7 Deferred Tax Assets 71

Note 8 Long Term Loans & Advances 71

Note 9 Other Non Current Assets 71

Note 10(a) Inventories 72

Note 10(b) Trade Receivables 72

Note 10(c) Cash & Bank Balance 72

Note 10(d) Short Terms Loans & Advances 73

Note 10(e) Other Current Assets 73

Note 11 Revenue from Operation 74

Note 11(a) Particulars of Sale of Products 74

Note 11(b) Particulars of other Operating Income 74

Note 12 Other Income 74

Note 13 Consumption of Raw Materials 75

Note 14 Increase/ Decrease Stock 75

Note 15 Employee Benefit Expenses 75

Note 16 Finance Cost 75

Note 17 Depreciation & Amortization Expenses 76

Annexure of Note 15

Note 18 Other Expenses 78

Note 19 Prior Period Adjustments 78

Note 20 Exceptional Items 79

Note 21 Earnings per Share 79

Note 22 Contingent Liabilities for claim against the company not 79

acknowledged as debts . Worksheet to Note 13

Note 23 A 82-86

Note 23 B 87-89

Note 23 C Segment Report 90

Authorised Share Capital

300,00,000 (P.Y. 150,00,000) Equity Shares off Rs. 1000/- each 300,000.00 150,000.00

Total Authorised Capital 300,000.00 150,000.00

Issued, Subscribed & Fully-Paid up

a) 1,49,999(P.Y. 1,49,999)Equity Shares of Rs. 1000/- Each 1,499.99 1,499.99fully paid-up for a consideration other than cash

b) 1,80,02,901 (P.Y. 1,28,60,001) Equity Shares of Rs. 1000/- each 80,029.01 128,600.01fully paid-up in cash

Total Issued, Subscribed & fully-paid up 181,529.00 130,100.00

Reconciliation of Shares Outstanding at the Beginning and at the End of the Reporting Period.

Particulars As at 31st March 2020 As at 31st March 2019

No. of Shares Value No. of Shares Value

Shares at the beginning of the year 1,30,10,000 130,100.00 1,30,10,000 1,30,100.00Addition during the year 5,142,900 51,429.00 -- --Shares at the closing of the year 1,81,52,900 181,529.00 1,30,10,000 130,100.00

Terms / Rights attached to the Equity Shares :1.(i) The Company has only one class of Equity Shares having face value of Rs. 1000/- per share . Each

holder of Equity Shares, present in person or proxy, is entitled to one vote for each share held. The Dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the next General Meeting.In the event of Liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the Capital paid up at the commencement of winding up.

1 (ii) Out of 1,30,10,000 Shares of Rs. 1000/- each, 5(five) shares of Rs. 1000/- each are held by the Additional Chief Secretary and four other officers of the Department of Power & NES, Government of West Bengal and 1(one) share of Rs. 1000/- each is held by the MD, DPL, while the remaining Shares stand in the name of the Hon'ble Governor of West Bengal.

1(iii) 1,49,999 Equity Shares of Rs. 1000/- each were issued in 1961 to the Hon'ble Governor of West Bengal as fully paid up on acquisition of the undertaking of the Durgapur Projects Ltd other than in Cash.

1(iv) There has been fresh infusion of Rs. 514.29 crores towards equity on 28th March, 2019, from the Government of West Bengal vide their Memo No. 100 (sanc.) POW.-13012(12)/16/2019-SECTION (POWER). Accordingly, 5142900 Equity Shares of Rs. 1000/- each was alloted during the FY 2019-20 on 24.10.2019

1(v) Details of Shareholders holding more than 5% shares in the Company

PercentageEquity Shares of Rs. 1000/- each, fully paid up As at 31st March 2020 As at 31st March 2019

Governor of West Bengal 99.9999 18,152,894 13,009,994

1(vi) As a measure to turnaround the Company the Authorised Share Capital of the Company has been raised to Rs. 300000 Lakhs Comprising of 30000000 nos. of Equity Shares of Rs. 1000 each on 28.07.2019 vide Extra ordinary General Meeting held on 12.07.2019 as approved by WB State Government Vide its order bearing no. 104-POW-13012(11)/16/2019- SECTION (POWER) dated 28.06.2019.

Notes on Financial Statements for the Year Ended 31st March 2020


(Rs. in Lakhs)

Note 1Share Capital


62


Notes on Financial Statements for the year Ended 31st March 2020

(Rs. in Lakhs)Note 2Reserves & Surplus


i) Capital Reserve : 0.56 0.65

Less : Transferred to Profit & Loss A/C [Note 2(i)] 0.09 0.47 0.09 0.56

ii) Government Grant :

From Government of India 1,138.50 1,138.50

Less : Transfer to WBSEDCL [Note 23B(3)(ii)(a)] (1,038.50 --

Balance as on date 100.00 1,138.50

From Government of West Bengal 147.00 147.00

Grant From Govt. of WB for Fencing in Land of DPL [Note-2(iii)] 134.00 -

Less: Transfer to WBSEDCL [Note-23B(3)(ii)(a)] (146.00) -

Balance as on date 135.00 235.00 147.00 1,235.50

iii) Consumer's Contribution : 3,645.75 3,497.04

Less: Transfer to WBSECL [Note-23B(3)(ii)(a)] (434.50) 148.71

Less Refund to Consumer (0.22)

Balance as on date 3,211.03 3,646.75

iv. Reserve for Unforeseen Exigencies : [Note 2(ii)] 8,249.61 7,090.05

Less : Transfer to WBSEDCL (Note 23B(3)(ii)(a)] (268.54)

Add: Transfer from Profit & Loss A/c During the year 79.88 227.87

Add : Transfer from Profit & Loss A/C during the year 941.80 931.69

Balance as on date 9,002.75 8,249.61

v) Profit and Loss Account: (317,130.19) (299,540.67)

Add : Transfer from Capital Reserve 0.09 0.09

(317,130.10) (299,540.58)

Add/(Less) : Profit for the year (39,223.59)) (16,430,04)

(365,353,69) (315,970.63)

Less : Appropriation

Transfer to Reserve for Unforeseen Exigencies 79.88 227.87

Transfer to Reserve for Unforeseen Exigencies 941.80 931.69

Balance as on date (357,375,36) (317,130.19)

344,926.11 303,948.76

2(i) In accordance with teh Accounting Policy [Note 23A (2) (h)], Subsidy received from Housing Department, Govt. of West Bengal amounting to Rs. 5.15 lakhs for creation of fixed assets during 1986-87, originally transferred to Capital Reserve, is adjusted by transferring Rs. 0.99 lakhs annually to Profit & Loss Account.

2(ii) Reserve for Unforseen Exigencies : In accordance with Regulation No. -48 framed by Hon'ble West Bengal Electricity Regulatory Commission (WBERC), an amount Rs. 941.80 lakhs(PY- Rs. 931.69 lakhs) has been transferred to the Reserve during the year.

In addition, interest on term deposit against unforeseen exigencies amounting to Rs. 75.88 lakhs (PY Rs. 227.87 Lakhs) earned during the year has also been transferred to the Reserve.

2(iii) An Amount of Rs. 134.00 Lakhs has been received from the Government of West Bengal as Grant for setting up of Barbed wire

fencing with concrete pillars, Ms Gates and Sign Boards in the plots of Land owned by the DPL vide G.O. (Memo) No. 53.POW-

13012(11)/34/2019 SECTION (POWER); dated 23.12.2019

63


(A) Secure Loan(i) Term Loan from Power Finance Corporations Ltd. 232,833.33 266,229.17

Note-3(a)(i)](ii) Term Loan from West Bengal State Co-Operative Bank Ltd. 3,472.23 --

236,305.56 266,229.17

(B) Unsecured Loan(i) Loan from Government of West Bengal [Note-3(a)(ii)] 39,169.32 39,169.32(ii) Loan from Central Electricity Authority 1,181.00 1,181.00

276,655.88 306,579.49

3(a) (i) The said Term Loan of Rs. 269000 Lakhs is guaranteed by Govt. of West Bengal to the tune of Rs. 216000 Lakhs (i.e. 80% of Loan Amount) as per Term & Conditions.

3(a)(ii) Pending finalisation of repayment terms, in respect of Govt of West Bengal and Central Electricity Authority the outstanding balance are considered to be of Long Term nature by the Management.

Note 3 (b)Other Long Term Liabilities


Securities and Other Deposits 1,123.57 3,559.26Interest on Security deposits from consumers 281.22 643.57Interest Accrue and due on loan from Govt. of West Bengal 38,997.88 36,193.62

40,402,67 40,396.45

Note 3 (c)Long Term Provisions


Provision for Gratuity 9,342.58 7,432.35Provision for Leave Encasement 6,128.49 4.714.07

15,471.05 12,146.42

3(c) The Computation of Liability on account of Gratuity, Leave Encasement and Leave Travel Concession as on 31.03.2020 has been done as per AS-15 and (i) detailed computation has been shown at Note -15. The total liability was Rs. 18,073.26 lakhs out of which Rs. 15,471.06 lakhs has been shown as long term provisions and Rs. 2602.20 Lakhs has been shown as short-term provisions (refer to 4(d) as per Acturial Valuation.



(Rs. in Lakhs)Note 3(a)Long Term Borrrowings

64

TH

E D

UR

GA

PU

R P

RO

JE

CT

S L

IMIT

ED

NO

TE

S T

O F

INA

NC

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TE

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S F

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TH

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ND

ED

31

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MA

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H, 2

02

0

No

te 3

(a)

(i)

Term

s o

f R

ep

aym

en

ts a

re a

s fo

llow

s :

Sl.

No.

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ticul

ars

Sec

urity

Inte

rest

Rat

eR

epay

men

t Ter

ms/

Mat

urity

Ter

ms

Cur

rent

M

atur

ities

Non

-Cur

rent

Mat

uriti

es

(A)

Fro

m P

ower

Fin

ance

Cor

pora

tion

Lim

ited

(PF

CL)

(i)

Term

Loa

n of

Rs.

269

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rs fo

rdi

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g va

rious

liab

ilitie

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dm

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g th

e re

quire

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ario

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ense

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ase

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e be

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et o

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ith th

ree

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rese

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qual

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thly

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afte

r 24

mon

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ach

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t. Th

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0 ye

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To b

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iii) T

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are

as

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:

Sl.

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ticul

ars

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rest

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epay

men

t Ter

ms/

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uriti

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est B

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1

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GR

AN

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276,

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(Rs.

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271,

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39,1

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311,

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65


SecuredCash Credit from United Bank of India -- 2,517.35

Overdraft Facility from State Bank of India [Note-4(a) (ii) 322.98 313.32Cash Credit From West Bengal State Co-operative Bank Ltd.[Note-4(a) (i)] 9,276.27 --Overdraft Facility from Indian Bank [Note-4(a) (ii)] 1,198.38 1,091.23

10,797.63 3,921.91

4(a)(i) Cash Credit arrangement with West Bengal State Co-operative Bank Ltd. bearing interest @ 10.75% interest p.a. is secured by first charges over Current Assets of the Company Comprising Stock & Debtors, both present & future and Equitable mortgage of Total Land of 21.650 acres in the name of Company at Mouza- Birbhanpur, JL NO. 91, Khatian No. 4859 and Dag No. 2016

(ii) Overdraft facilities from banks are secure against fixed Deposits.

Note 4(b)

Trade Payables :


For Goods & Services :

- MSME (Refer Note - 23B (3) (vi) -- --

- Others 44,060.06 44,926.05

44,060.06 44,926.05

4(b) i) Trade payable (Others) includes the following major item FY 2019-20 FY 2018-19

a) Purchase of coal [Note 4(b) (ii)] 18,534.89` 8.585.64

b) Fuel Oil 5.58 5.58

c) Stores and Spare Parts 1,783.13 1,128.71

d) Purchase of Power (Old Pre-restructered Balance as of

31.12.2018) Note - 23B(6)] 15,317.94 27,349.76

e) Purchase of Raw Water 5,826.66 5,230.02

f) Short lifting Compensation on coal 2,531.43 2,531.43

g) Other Misc Liabilities60.42 94.91

Total 44,060.06 44,926.05

4(b)(ii) The Company is having large number of transactions with various Coal Companies under Linkage / Non Linkage arrangements. The outstanding balances.Comprises off certain Debit and Credit entries with the coal companies, which are subject matter of reconciliation & confirmation. Adjustment to outstanding balance will be made as and when the said reconciliation and confirmation exercise is complete. However, management does not expect such adjustments to be material


Notes on Financial Statements for the year ended 31st March 2020

(Rs. in Lakhs)Note 4(a)Long Term Borrowings

66


Current maturities of Long Term Borrowing :

(Payable within 12 months from the reporting date)

(i) Term Loan from Power Finance Corporation Ltd. 33,395.83 --

ii) Term Loan From West Bengal State Co-operative Bank Ltd. 1,527.78 34,923.61 -- 2,770.83

Income Received in Advance :

Advance received against Sale of Scrap 0.81 0.81

Advance from customers 163.03 167.53

Advance from customers for coke and by-products 648.35 812.19 545.43 713.77

Advance Received from Power Sector Co's (WBSETCL) [ Note

23B(3) (ii) (a)] -- 4,500.00

Interest on Advance taken from WBSETCL [ Note 23B(3)(ii)(a)] -- 1,250.91

Interest Accrued & Date on Loan :

- From Govt. of West Bengal2,811.62 2,804.26

- From Central Electricity Authority 4,727.09 7,538.71 4,534.55 7,383.82

Interest Accrued But Not Due on Loan :

- From Govt. of West Bengal380.93 374.23

- From Power Finance Corporation Ltd. 1,220.22 1,601.15 1,397.31 1,771.54

Interest Payable on IPDS Funds 45.19 64.53

Securities and Other Deposits 1,701.23 1,769.97

Statutory Liabilities [Note-4(c) (i) ] 6,031.46 6,134.81

Other Liabilities [Note-4(c)(ii)] 80,834.01 52,314.58

133,487.55 78,629.75

4(C) (I) Statutory Liabilities includes the following: FY 2019-20 FY 2018-19

a) Interest on Electricity Duty 5,323.23 5.,332.23

b) Employee's Contribution of Provident Fund 219.33 231.99

c) Employers' Contribution to PF, Pension Fund PMGKY Scheme 210.59 258.87

d) Others 269.31 311.72

TOTAL 6,031.46 6,134.81

4C(ii) Other Liabilities includes the following

a) Railway Freights 1,089.92 956.54

b) Salaries & Wages 1,689.89 1,586.59

c) Gratuity & Leave Encasement 3,876.00 4,025.66

d) Liabilities for Capital Expenditure 10,384.44 10,771.61

e) Liabilities for Dongfang Electric Corporation [Note-4 (c) (iii) 13,090.97 12,209.72

f) Liabilities for Guarantee Fees payable to Govt. of West Bengal 4,509.28 2,254.73

g) Liabilities for Doubtful Energy Tariff Refund {Note-4 (c) (iv)} 2,126.30 2,126.30

h) Other {Note- 4(c) (v)} 44,067.20 18,401.42

TOTAL 80,834.01 52,314.57

4(c) (iii) Since the Contract with M/s Dongfang Electric Corporation has not been closed as yet due to certain unsettled claim for unresolved issues, the work done and capitalised has been considered for providing liability notwithstanding DPL's claim on account of liquidated damages and other claims as per provision of the contract.

4(c) (iv) Liabilities for Doubtful Energy Tariff Refund was created for the amcunt billed in excess over the tariff prescribed in tariff orders for the year 2000-01 & 2001-02 as the matter is still sub-judice.

4(c) (v) Other Liabilities includes Rs. 28106.87 Lakhs to M/s. WBSEDCL being Balance on Current Account an is under reconciliation [Refer Note - 23B (6)].


(Rs. in Lakhs)Note 4(c)Other Current Liabilities


67



(Rs. in Lakhs)Note 4(d)Other Current Liabilities


Provision for Gratuity 1,644.73 2,942.22Provision for Leave Encashment 907.36 1,761.17Provision for Leave Travel Concession 50.12 96.53Others-short Lifting Compensation on Coal 8,122.55 8122.55

10,724.75 12,922.47

4(d) (i) Gratuity Leave encashment and Leave Travel Concession due and payable to the employees during the year 2020-21 have been shown as short term provision as per As15 (Refer Note - 15).

68

Land

[Not

e-S

(a)(

i)]74

0.81

--(5

2.02

)68

8.79

----

----

688.

7974

0.81

Leas

e H

old

Land

(N

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5(a)

(i)]

5.99

----

5.99

1.45

0.06

--1.

514.

484.

54

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ans

Dam

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l Min

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er A

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rs. T

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per

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Rs.

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64

lakh

s T

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ass

ets

have

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pt a

t res

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70



(Rs. in Lakhs)Note 6Non - Current Investment

Investment in Equity Instruments of Joint Venture :

830000 Shares of Bengal EMTA Coal Mines Ltd. of Rs. 10/- each

fully paid up including Registration fees - Rs. 15,000/- 30.15 -- 30.15

Less Diminution in Value of Investment (30.15)

Investment in Equity Instruments of Others :

750 Shares of DP Employee' Multi Purpose 0.08 0.08

Co-Operative Society of Rs. 10/- each fully paid up.

0.08 30.23


Deferred Tax [Note 23B(5)] -- --


Rs. in LakhsNote 7DEFERRED TAX ASSETS

Note 8Long Term Loans & Advances

i) Capital Advances : -- --a) Secured considered good ( against Bank Guarantee) -- --b) Unsecured considered good : -- --

ii) Others : -- ---- --


Note 9Other Non-Current Assets

(A) Security Deposits 4.66 4.66

(B) Claims Recoverable- Unsecured considered good -- 12.25- Unsecured considered doubtful 192.00 179.95Less : Provision for Bad & Doubtful Debts 192.20 179.95

(C) Dues from Government of West Bengal- Unsecured considered good 10.89 10.89

(D) Non Current Bank Balance (Fixed Deposit) -- 200.02

(E) Input Tax Credit 30.24

45.79 227.82


71



Note 10(a)INVENTORIES

(Rs. in Lakhs)

a) Raw Materials 7,841.67 3,119,24b) Raw Materials in Transit 955.26 546.83c) Finished Stock 177.44 177.44d) Stores & Spare Parts 7,229.24 7,131.97e) Stock of Capital Goods 20.27 20.27

16,223.87 10,995.75Less : Provision for slow-moving / obsolescence / theft of stores 3,540.22 12,683.65 3,682.62 7,313.13

f) Store materials under inspection 20.91 20.91 Less : Provision for rejections 20.91 -- 20.91 --g) Printing & Stationary 3.26 3.60 Less: Provision for obsolescence 0.99 2.27 0.31 3.29h) Medical Stores and Medicine 4.93 20.21 Less : Provision for obsolescence -- 4.93 0.68 19.53

12,690.85 7,335.94

10(a) (i) Provision made for Rs. 3540.22 lakhs including the stock of Coke Oven Group of Plants and Power Plant has been considered to be adequate.

10(a) (ii) The Physical verification of Stores & Spares are under process. Discrepancies if any, between Book & Physical Stock will be identified and adjusted as and when the said exercise of Physical verification will be completed. Management does not expects the adjustments to be material.


Note 10(b)Trade Receivables


Unsecured considered goodUpto Six Months 11,432.67 12,302.94Above Six Months 4,001.69 15,434.36 4,839.77 17,142.71

-Unsecured considered doubtful 5,430.99 -- 14,897.90Less : Provision for Bad & Doubtful Debts 5,430.99 -- 14,897.90 --

15,434.36 17,142.72

Note 10(C)Cash & Cash Equivalents


Cash & Cash Equivalents :Imprest Cash, Cheques in hand and Postage Stamps 1.43 1.46Balance with BanksIn Current Accounts 55.97 984.63In other earmarked balance 3.50 1.59Recurring Deposit with Schedule Bank -- 36.00Fixed Deposits with Original Maturity upto 3 months [ Note 10(c)(i)] 516.27 1,451.51Fixed Deposits with Bank underr IPDS 31.99 647.40Other Bank Balances:Fixed Deposits with Original Maturity more than 3 months [Note-10(c)(i)] 212.00 1,253.69Fixed Deposits given as lien 2,025.74 1,916.28Margin Money 1,623.66 299.36

4,471.26 6,591.91

10(c)(i) In Compliance with Regulation No. 48 namely West Bengal Electricity Regulatory Commission (Term & Conditions o Traiff) Regulation, 2011 dated 24.04.2011 issued by WBERC, the investment in STD / LTD in connection with Reserve for unforeseen Exigencies amounts to Rs. 728.97 lakhs (PY Rs. 1692.42 lakhs) are held in the form of fixed Deposits with Bank.

72

Regulatory - Assets [Note-10(e)(i)] 74,765.84 59,447.00Deposits :- Deposits with Central Excise Authority 0.24 0.24- Deposits with Port Trust & Others Govt. Authorities 0.11 0.11- Deposits with Railways - Weight Privilege 27.61 27.61- Deposits with Others 3.00 3.00Interest accrued on Short Term Deposit 79.98 99.99Rebate recei8vable on PFCL Loan 112.39 31.32UI Charges of S.L.D.C. receivable 56.77 35.35Miscellaneous balances 55.96 55.91Pre-paid Expenses 116.39 119.49Input Tax Credit under GST 20.21 30.24Materials issued in advance to V.A.Tech as loan 186.28 186.28

Interest accrued on Short Term Deposit on :IPDS Fund received from PFCL 10.71 10.71Recevable from Govt. Account 25.10 --Receivable form WBSETCL* 212.57 213.62Receivable from WBMDTCL* -- 66.12

75.673.16 60,326.99

10(e) (i) Regulatory Assets is recognized on the expectation that future economic benefits associated with it will flow to the Company as a result of actual or expected actions of the Regulator under the applicable regulatory frame work and the amount is measured reliably

The method of accounting was followed consistently as per Guidance Note of the ICAI on 'Accounting for Rate Regulated Activities.'

In Absence of Tariff order orr WBERC for financial year 2014-15 to 2018-19 the amount of claims have been accounted for on a conservative basis and worked out from actual claims preferred.

Total amount of Regulatory Assets as at the end of the financial year 2019-20 comes to Rs. 74765.84 Lakhs (PY-Rs. 59447.00 lakhs) which will be realizable through regulatory mechanism from the financial year 2020-21 & onwards.

* Pending Confirmation from the respective counter parties, the balances are taken as per the Books of the Company.



Note 10(d)Short Term Loans & Advances

(Rs. in Lakhs)

Particulars

Particulars

As at 31st March 2020




Short-terms loans & advances (Unsecured)a) Advance to Contractors & Suppliers

- Unsecured considered good 7,465.76 7,821.92- Unsecured Considered doubtful 713.56 -- 713.56 Less : Provision for doubtful recovery 713.56 -- 713.56 --

b) Advance to Employees 117.71 140.06c) Advance to Othersd) Claims recoverable

- Unsecured considered good 350.40 354.33- Unsecured considered doubtful 7.55 7.55Less : Provision for doubtful recovery 7.55 -- 7.55 --

7,933.88 8,296.31

Note 10(e)Other Current Assets

73

Sale of Products 80,792.36 106,571.63Other operating Income [Note -11(b)] 2,788.80 1,975.79

83,581.16 108,547.42

83,581.16 108,547.42

Sale of Energy [Note -11(a) (i)] 79,823.57 105,598.44

Sale of Water [Note-11(a)(ii)] 968.79 973.19

80,792.36 106,571.63

11(a)(i) Sale of Energy represent Sale to a WBSEDCL only.

11(a)(ii) The Water Works of the Company suppliers processed and drinking water for domestic and industrial use, part of which is sold to vatious consumers also and has been shown as sale of water.

Coke conversion charges 13.02 --Sale of Residual COGP Product [Note-11(b) (i)] 1,694.32 --Sale proceeds of Fly Ash 1,071.02 345.08Misc. Revenue from Consumers of energy (Meter rent) -- 96.70Income from Wheeling Charges for Power Supply -- 201.63Meter Testing Charges -- 0.12Sale of Application Forms for Electricity Connection -- 0.01Rebate on Purchase of Power -- 1.77Penalty & Delay Fine 4.21 1,223.25Water connection Charges 1.77 1.51Other Miscellaneous Income -- 99.39On account off Adv., & Publicity 4.46 6.32

2,788.80 1,975.79

11 (b)(I) Sale of Residual COGP Product has arisen out of unaccounted stocks excavated, the corresponding production cost which had been absorbed during the years the COGP was in operation before its closure on 03.07.2015



Note 11REVENUE FROM OPERATIONS

Note 11 (a)PARTICULARS OF SALE OF PRODUCTS

Note 11 (b)PARTICULARS OF OTHER OPERATING REVENUE

(Rs. in Lakhs)

Particulars

Particulars

Current Year 2019-2020


Previous Year 2018-19


Particulars Current Year 2019-2020 Previous Year 2018-19


Note 12Other Income

Interest on deposits 290.91 315.82

Vehicle Receipts 17.88 21.68

Hospital Receipts 1.39 2.61

Rent & Allied Charges [Note-12(i)] 95.04 131.01

Sale of Scraps / Stores / Render Papers 4.71 0.93

Training Fees 18.46 19.25

Excess Provision Written Back 18.83 --

Other Income [Note-12(ii)] 30.19 112.43

Old Liabilities Written Back 3.59 2,361.65

480.99 2,965.38

12(i) Rent & allied charges include license fees realised by the Company against letting out of its residential units and stalls in the township required for

providing community facilities to residents in its township.

12(ii) Other income comprises majorly receipts towards Liquidated Damages recovered from Contractor's & Supplier's Bill.

74



Note 13Consumption of Raw Materials

Note 14(Increase) / Decrease in Stock

(Rs. in Lakhs)

Particulars

Particulars





Total Consumptions with adjustment for Shortage / Surplus 62,384.38 58,568.40

62,384.38 58,568.40

Opening Stock in trade - Finished goods * 177.44 177.44

Closing Stock in trade- Finished goods* 177.44 177.44

-- --

* The entire Balance of Finished Goods Stands fully provided.


Salaries & Wages 11,264.46 12,377.92Elctricity Allowance 224.20 277.57Leave Travel Concession –1.15 –33.53Leave Salary [Note 15(a)] 2,175.47 705.22Exgratia and Statutory Bonus 247.70 184.97Gratuity [Note 15(a)] 3,382.42 1,378.49Service Contribution (For Employees on Deputation) 1.68 2.46Company's Contribution to Provident Fund 939.01 1,017.99Company's Contribution to Pension Scheme 262.32 324.54Workmen and Staff Welfare Expenses 224.98 143.35Consumption of Medicine 34.97 13.05

18,756.06 16,392.03

15(a) Gratuity & Leave Encashment amounting to Rs. 2630.66 Lakhs & Rs. 1245.34 lakhs respectively on account of Ex-Employees of the Company retired during the year and remaining unpaid as on the closing date off the current year is included in the respective expenses over and above the actuarial valuation. Corresponding liability for the same has been disclosed under Note 4(c)as Other Liabilities.


Interest on Loan / Advance from :Government of West Bengal 2,818.32 2,804.26Central Electicity Authority 192.53 189.71Power Finance Corporation Ltd. 29,343.44 29,147.51United Bank of India 132.69 243.60Indian Bank 83.21 68.04West Bengal State Co-operative Bank 508.91 --West Bengal State Electricity Transmission Co. Ltd. -- 1,250.91

33,079.09 33,704.03

Note 15Employee Benefit Expenses

Note 16Finance Cost

75



Note 17Depreciation / Impairment and Amortisation Expenses

(Rs. in Lakhs)


Depreciation / Impairment [Note 17(a)] 12,922.89 14,184.37

12,922.89 14,184.37

17(a) Depreciation in respect of Power Plant has been provided in compliance with Part B of Schedule II of Companies Act, 2013. For the remaining assets,

depreciation has been provided in accordance with Part C of the Said schedule.

76

i) Opening Balance as of 01.04.2019 : 10,374.57 6.475.23 -- 10,649.58 6,551.18 --ii) Fair Value off plan assets as of 01.04.2019 : -- -- -- -- -- --iii) Difference : 10,374.57 6,475.23 -- 10,649.58 6,551.18 --iv) Closing Balance as of 31.02.2020 : 10.374.57 `6,475.23 -- 10,649.58 6,551.18 --

B Reconciliation of Opening and Closing Balances of Obligationi) Opening Balance as of 01.04.2019 : 10,374.57 6,475.23 -- 10.649.58 6,551.18 --

ii) Past Service Cost : -- -- -- -- -- --iii) Current Service Cost : 435.84 338.57 -- 371.09 278.68 --iv) Interest Cost : 650.01 400.80 -- 809.37 497.89 --v) Actuarial Losses / (Gains) : 997.23 806.09 -- (1.455.46) (852.52) --i) Benefits Paid : -- -- -- -- -- --i) Obligation as of 31.03.2020 : 10,987.30 7,035.85 50.12 10,374.58 6,475.23 96.53

C. Reconciliation of Fair value of plan and present value of defined benefit obligation and Closing Balance of obligation

i) Present Value of obligation as of 31.03.2020 : 10,987.30 7,035.85 50.12 10,374.58 6,374.23 96.53ii) Fair Value of Plan assets : -- -- -- -- -- --

iii) Amount recognised in the Balance Sheet (i)-(ii) : 10,987.30 7,035.85 50.12 10,374.58 6,475.23 96.53

D. Expenses recognised in the period

i) Current Service Cost : 435.84 338.57 -- 371.09 278.68 --ii) Past Service Cost : -- -- -- -- -- --iii) Interest Cost : 650.01 400.80 -- 809.37 497.89 --iv) Expected return on plan assets (Gain)/Loss : -- -- -- -- -- --v) Actuarial Losses / (Gains) : 997.23 806.09 -- (1,455.46) (852.52) --iv) Expenses recognised in the period in revenue

account (i+ii+iii+iv+v) : 2,083.08 1,545.45 -- (275.00) (75.95) --

E. Assumptions

i) Discount p.a. (%) : 6.50% 6.50% 6.50% 7.30% 7.60% 7.30%

ii) Estimated rate of return on plan assets p.a. (%) : N.A. N.A. N.A. N.A. N.A. N.A.iii) Inflation rate (%) : 5.00% 5.00% 6.50% 5.00% 5.00% 7.30%

iv) Method Used : Projected Unit Credit Method Present Value Projected Unit Credit Present Value(UPC) of defined Method (PUC) of Defined

Benefit BenefitObligation Obligation

v) Mortality : 100% of IALM 2012-14 Ultimate 100% of IALM 2012-14 Ultimate

vi) Superannuation aghe : 60 years 60 years

vii) Basis of determination of expected rate of return : Market Yield on Govt. Bonds Market Yield on Govt. Bonds

F. Since there is no plan assets under both the obligations of defined benefits, the information as to reconciliation in change in plan asstes and

investment details off plan assets is not relevant.

Note : Gratuity 518.81 Lakhs transferred to WBSETCL & Rs. 951.54 lakhs transferred to WBSEDCL.

.

Particulars For the year ended on 31.03.2020 For the year ended on 31.03.2019

Provident Fund -- 939.01 1,017.99Employees Family Pension -- 262.32 324.54

Total -- 1201.34 1,342.53

Annexure to Note 15

Information pursuant to AS-15 of ICAIThe following adjustment relating to Employee Benefits have been made in the Accounts in line with Accounting Standard - 15 (revised) issued by ICAIa) Expenses under defined contribution plan have been recognised during the year as per details.

b) Particulars in respect of Post Retirement Benefit under defined Benefit Plans as per details given below:

FY 2019-20 FY 2018-19

DescriptionGratuity

(unfunded)(Rs. in Lakhs)

Leave Encashment(unfunded) (Rs.

in Lakhs)

Leave TravelConcession

(unfunded)(Rs.in Lakhs)

Gratuity(Unfunded) (Rs.

in Lakhs)

Leave Encashment(unfunded) (Rs.

in Lakhs)

Leave TravelConcession

(unfunded) (Rs.in Lakhs)

A.

77



Note 18Other Expenses (Rs. in Lakhs)

Manufacturing ExpensesStock & Spares Sonsumed 2,410.72 1,747.07Freight & Handling Charges on Stores & Spares 11.22 3.19Misc. Expenses - UI Transaction of SLDC 55.56 --Repairs & Maintenance Expenses :- Buildings 72.09 132.91- Plant & Machinery 3,092.49 3,819.54- Other Assets 398.54 286.13

6,040.71 5,988.84Administrative, Selling and Other Expenses

Guarantee Fees on Loan 2,254.55 2,254.55Ash Disposal Expenses 279.89 294.69Security Staff Hired Expenses 296.94 322.99Khajana with surcharge for Land 200.50 2.10Interest on Khajana for Land 11.98 0.90Hired car charges 111.67 108.48Miscellaneous Expenses 1,022.28 1,057.07Electricity Charges 1,008.76 194.22Consumption of medical stores & theft of stores 1.21 2.03Rates & Taxes 52.75 44.57Rebate on Electricity Bills (inl. Duties) -- 1090.17Insurance 28.63 11.70Director's Remuneration & Fees :- Salary 19.55 33.44- Fees 4.25 3.93Auditor's Remuneration :i) Statutory Audit - Fees 4.48 4.40ii) Tax Audit - Fees 0.71 0.35iii) Others - Fees including Certificate 7.26 8.63Interest on Security deposit from consumers -- 125.94Handling charges on Coke 5.87 --Service Tax on behalf of Party -- 0.10Interest paid to Bright Security Services -- 2.50Obsolescence off Store & Spares provided for -- 198.38Provision for Claim Recoverable written off 12.25 --Diminution in Value off Investment 30.15 --Bad & Doubtful Debts / advances provided for -- 7,451.24

5,353.72 13,212.3811,394.43 19,201.22


DebitEmployees' Remuneration & Benefits 0.22 --Legal Expenses 0.69 0.82General Charges 0.01 --Repairs to plant & Machinery (0.94) --Depreciation -- 0.63Workmen & Staff Welfare Expenses 0.07 --Consumption of Stores & Spare Parts (0.01) --Consumption of Raw Materials 44.44 --Miscellaneous Expenses (Incl. Ash. Disposal) (0.09) 196.79Printing & Stationary 3.60 --

Total 48.00 198.24Credit

Income from U.I.T. Transactions (24.36) --Interests cn ST 8..03 --Miscellaneous Income (3.40) (25.60)Employee's Remuneration & Benefits -- 8.08General Charges -- 30.52Repair to Plant & Machinery -- 22.32Consumption of Stores & Spare Parts -- 1.10P & L Adjustment (Purchase of Raw material) -- 704.45

Total (19.73) 740.87

Net Total Dr. / (Cr.) 67.73 (542.63)


Note 19PRIOR PERIOD ADJUSTMENTS

78

i) Claims under Different Pending Suits 100.97 383.18 3 different cases pending with Suppliers/ Bankers

ii) Sales Tax & CST demand pending in Appeal 110.83 110.83 Pending with Asstt. Comm. Of Commercial Taxes(Appeal) / Durgapur

iii) Service Tax 793.51 272.93 Appeal Pending with Central Excise Authority

iv) Central Excise Duty 2,976.15 2,837.85 Pending with CESTAT, Kolkata

v) Dong Fang Electric Corporation 10,972.56 10,481.18 Refer Note Below

Total 14,954.01 14,085.96

.There is a Claim on the Company from M/s Dong Fang Electric Co. Ltd. China amounting to Rs. 10972.56 Lakhs on account of Construction of 1x300 MW..7 which is outside the scope of contract and hence has not been acknowledged by the Company. This amount includes a claim in Foreign Currency Dollars also which has been converted in Indian Rupees while arriving at the amount as stated above. At present the Company is in the process of ..ssions with the Turnkey Contractor where in the above claims have been contested by the Company.



Note 20Ceptional Items

(Rs. in Lakhs)



Amount Realizable through Tariff & APR 74,765.84 59,447.00

Less Existing Regulatory Assets Crystallised in Tariff

for FY 2018 - 19 59,447.00 42,025.00

Regulatory Income [Note-20(i)] 15,318.84 17,422.00

i) A sum of Rs. 15318.84 Lakhs (PY - Rs. 17,422.00 Lakhs) has been considered as per WBERC regulation in the accounts of FY 2019-20 as Income

Receivable through Regulatory Mechanism on account of Fuel & Power Purchase Cost Adjustment (FPPCA) and Annual performance Review (APF)

for the FY 2018-19 for which necessary petition has to be submitted to WBERC.

Profit After Tax (39,223.59) (16,430.04)

Weighted Average Number of Shares 15,258.262 13,010.000

Basic Earnings per share (257.06) (126.29)

Note 21EARNINGS PER SHARE

Note 22Contingent Liabilities for Claims Against the Company not Acknowledged as Debts

Sl.No.

ParticularsCurrent Year

2019-20Previous Year

2018-19Remarks

79



(Value's in Lakh)Worksheet to Note - 13(i) Quantity & Value of Raw Materials Consumed

Power PlantCoal 15,48,848.51 MT Rs.60,195.59 16,20,374.00MT Rs.56,660.92Oil 1858.783 KL Rs. 913.45 2141.941 KL Rs. 925.76Less (Surplus) / ShortageCoal 17,459.70MT Rs. 678.60 9837.96MT Rs. 344.01Oil 0.0050 KL Rs. 0.00 0.0050 KL –0.00

ConsumptionCoal 15,66,308.21MT Rs. 60874.29 16,30,211.96 MT Rs. 57,004.93Oil 1858.788 KL Rs. 913.46 2141.936 KL Rs. 925.76

Consumption (combined) Rs.61,787.74 Rs.57,930.69

Water Works

Raw Water 29,911.437 Mltr Rs. 596.64 30,512.899 Mltr Rs. 637.71

Total Value Rs. 62,384.38 Rs. 58,568.40


Quantity Value Quantity Value

Stock at the Beginning of the Year 3,119.24 3,779.16

Add : Purchases 56988.23 47,928.44Freight 8,990.84 9.134.53Handling Charges 1,127.75 67,106.81 845.51 57,908.48

70,226.05 61,687.64Consumption 52,384.38 58,568.40

Stock at the End of the Year 7,841.67 3,119.24


(II) Consumption of Raw Materials

80



(Value's in Lakh)Worksheet

(I) Consumption of Stores & Spares

Stock at the Beginning of the Year\Add / (Less) Adjustments (272.90) (26.88)

6,854.50 7,481.80

Add : Purchases 2,953.83 1,524.81Foreign Spares -- -- -- --Customs & Clearing Charges -- 2,953.83 -- 1,524.81

Less : Consumption 2,410.72 1,747.07Less : Consumption (Ash Disposal) 173.91 132.14

Stock at the end of the Year 7,223.70 7,127.40

7,127.40 7,508.68


Postage, Telegram & Telephone 8.93 23.45Printing & Stationary 8.88 16.80Travailing Expenses 7.40 8.64Motor Vehicle Expenses (Including Vehicle Insurance) 5.09 8.83Advertisement & Publicity 32.50 16.69Legal Expenses 14.68 47.58Bank Charges (Including Remittance Charges) 29.45 16.77General Charges 915.35 918.32

Total 1,022.28 1,057.07

* In Terms of Notification issued by Ministry of Environment & Forests dated 3rd Novemeber, 2009 in respect of Utilization of Fly Ash it is stated that for unit No. 7 & 8 the dry Ash produced during generation is entirely disposed of to the Bricks and Cement industries. The wet ash produced from Unit No. 7 is Collected in Ash Pond and later disposed of free of cost for use in road construction by NHAI.


(II) Miscellaneous Expenses

81

NOTE - 23A

Notes Forming parrt of Financial Statements for the year ended 31st March, 2020

1. CORPORATE INFORMATION

2. SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Preparation of Financial Statements :

b. Use of Estimates :

c. Fixed Assets :

The Durgapur Project Limited (The Company) is a multi - unit, multi-product West Bengal State Govt.

Enterprise and incorporated under the provisions of the Companies Act, 1956. The Company comprises

of Power Station, Coke Oven Group of Plants (COGP) and Water Works, all three being different profit

centers located at Durgapur, West Bengal.

The operation of the Company are government by the Companies Act, 2013 and the Electricity Act, 2003

and various regulations and / or policies framed thereon by the appropriate authorities. Accordingly, the

financial statenet have been prepared in terms thereof and the Electricity Act, 2003 have been followed

and complied with wherever they are inconsistent with the provisions of Companies Act, 2013

The Financial statements are prepared under the historical cost convention on accrual basis of accounting

unless otherwise stated, in accordance with the Generally, Accepted Accounting Principles in India, and

the relevant provisions of the Companies Act, 2013 including accounting standards notified there under.

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles in

India requires the management to make estimates and assumptions that affect the reported balances of

assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements

and reported amounts of revenue and expenses during the reported period. The difference between the

actual results and estimates are recognized in the period in which the results are known or materialized.

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

b) Land is valued at cost of acquisition and subsequent development thereon.

c) In the case of commissioned assets, where final settlement of bills with Contractors are pending,

capitalization is made on the basis of provisional liabilities subject to necessary adjustment in the year of

final settlement.

d) Cost off Meters is capitalized to the extent off Credit raised to the Consumers for electricity in case off

meters purchased by consumers.

82

d) Borrowing Costs :

e) Depreciation / Amortization :

f. Capital Work - in Progress :

g. Impairment off Assets :

h. Reserve :

i. Investment :

j. Inventories :

To the extent that the funds are borrowed specifically for the purpose of acquisition of qualifying asset, the

identified amount of borrowing cost reduced by any income on temporary investment of those borrowing is

capitalized as part of the cost of the qualifying asset. Capitalization of borrowing costs ceases when

substantially all the activities necessary for the preparation of the Tangible Assets for its intended use are

complete.

a) The assets used at Power Plant are depreciated under Straight Line Method (Pro-rata basis) in compliance

with part B of Schedule II to the Companies Act, 2013 whereby the provisions of Clause 5.6.2 (ii) of

Regulation No. - 48 dated 29/04/2011 published by the WBERC under the Electricity Act, 2003 are

applicable.

b) Other Tangible Assets except Land and Developments there on, are depreciated on Straight Line Method at

the rates prescribed in Part C of Schedule 'II' to the Companies Act, 2013.

a) Capital Work-in-prrogress is stated at cost, incurred during pre-operative / pre-commissioning period.

b) Transfer to Fixed Assets from Capital Work -in Progress is made on the basis of completion certificates and

/ or 'Put' to use' certificates issued by the competent officials.

c) Materials which are issued for construction works at sites are fully charged to Capital Work-in-progress.

d) Interest on Loan from Financial Institutions utilized for Capital Works is capitalized up to the stage of

capitalization. Once the Work is capitalized, subsequent related interest is charged to Revenue A/c.

Expenses common to operation and construction activities are charged to statement of Profit and Loss.

The Carrying cost of Assets of Cash Generating Units is reviewed at each Balance Sheet date. An asset is

considered as Impaired when the carrying cost of Asset exceeds its recoverable value. An impairment loss

is charged when the asset is identified as impaired. Accordingly, such computation is made for discounted

cash flow generation for five years for Water Works and for ten years for Coke Oven Group of Plants &

Power Plant.

a) Subsidy received on account of fixed assets is transferred to Capital Reserve. Adjustment is made by

transferring to Profit & Loss account annually over the the lives of the respective assets.

b) Amount is credited to 'Reserve for Unforeseen Exigencies' every year in terms of WBERC norms.

Long term investments in shares are reflected at carrying cost unless there is diminution in value thereof.

i) Stock of Raw Materials (Coal & Fuel Oil) is valued at Landed Cost on Weighted Average Basis.

ii) Stock of Finished Goods is valued in the following manner :

i) Valuation is made at lower of cost or net realizable value for Hard Coke only.

ii) Stocks of Tar and Mixed Coke are valued at net realizable value.

iii) Closing Stock of Stores and Spare Parts etc. are value at Weighted Average Cost.

83

iv) Coal in ovens for processing Coke as at the end of the year is not taken into consideration.

v) In respect of Coal & Oil, the value of year end stock is derived after taking into consideration the aggregate

cost of opening stock and materials purchased during the year and after adjustment of consumption and

shortage.

vi) Quantity of closing stocks of Coal & Coke is based on Contour Survey Method.

vii) Stock of Printing & Stationery and Medicine are taken on the basis of year -end Physical Verification at last

purchase price.

i) The foreign currency transactions are accounted for at the equivalent rupee realized / incurred as per advice

from bankers.

ii) The foreign currency transactions remaining unsettled at the year -end are translated at the rates prevailing

at the end of the year and the difference is duly adjusted.

iii) Fixed assets acquired / constructed for payment in foreign currency is capitalized considering loss or gain

due to exchange rate fluctuation till the date of bringing the assets in use / capitalized. However fluctuation

in foreign exchange rate subsequent to use / capitalization of the assets having impact on residual payable

amount has been adjusted with value of assets in terms of notification no. G.S.R. 913(E) dt. 29.12.2011 of

Ministry of Corporate Affairs.

I) Sale of Electricity is recognized on the basis of bills raised for the energy supplied to the consumers.

II) It also includes the amount expected to be receivable against DPL's claim for APR for the preceding year

computed in a realistic manner based on the provisions of relevant regulations and operating norms

prescribed by the Hon'ble WBERC . In absence of APR order for the specific year, a provision on the

lower side is booked to revenue in each year.

III) It also includes amount receivable in installment towards arrear dues from consumers due to increase in

tariff rates as per order issued by WBERC.

IV) Delay payment surcharge is accounted for on realization basis.

I) Sale of Coke and by-prroducts are accounted for on the basis of bills raised on clearance from Factory

premises.

II) Sale of Coke oven gas is accounted for on the basis of bills raised for consumption of gas as recorded in

the respective meters installed for the purpose.

III) Revenue from operation in respect of Coke Oven includes conversion charges billed for dispatch of

Coke produced under Conversion agreement with major steel plants and other organizations as per

terms and conditions of the respective agreements.

I) Sale of water (both process & drinking) is accounted for on the basis of bills raised for the quantity

actually supplied during the year.

II) Delay payment surcharge is accounted for on realization basis

k. Foreign Currency Transaction :

I. Revenue Recognition :

i) Sale of Electricity :

ii) Sale off Coke Oven Products :

iii) Sale of Water :

84

m) Other Income :

n) Claims for Liquidated Damage / Price Escalation :

o. Other Claims :

p. Retirement & Employees' Benefit :

Defined Contribution Plan

Defined Benefit Plan

q. Prior Period, Extra - Ordinary Items & Write Back of Liability :

r. Miscellaneous Expenditure to the extent not written off or Adjusted :

s. Segment Information :

i) Sale of Scrap is recognized on the basis off realization.

ii) Interests on bank deposits are recognized on accrual basis.

iii) Dividend received is accounted for when the right to receive such dividend is established.

iv) Amount realized on account of other misc. income is recognized on realization basis.

Claims for liquidated damages are accounted for as and when these are deducted and / or considered

recoverable by the Company. These are adjusted to the capital cost or recognized in Statement of Profit and

Loss ( as the case may be) on final settlement. Suppliers' / Contractors' claims for price escalation are

accounted for to the extent such claims are accepted by the Company.

i) Claims with the Railway for missing / misdirected Wagons and those with Transport contractors and suppliers

are accounted for as and when the claims are preferred.

ii) Claims lodged with the Insurance and Customs Authorities are accounted for on settlement / realization

basis.

Retirement liabilities are in the nature of defined contribution plan and defined benefit plan.

Provident Fund and Employees' Family Pension belong to this category where the Enterprise has no other

obligation to pay except for the annual contribution made to concerned Trustees. These are accounted for in

terms of accrual basis.

Gratuity, Leave Salary & Leave Travel Concession relate to this plan. Under such scheme, employees are

entitled to defined benefit which is based on actuarial calculation under Projected Unit Credit Method in due

cognizance of various factors of uncertainties i.e. death probability, inflationary consequences,premature

retirement and other unforeseen predicaments.

a) Adjustments which arise due to omissions and errors in booking income and expenditure i.e. non-adjustment

of rebate in power bills, delay in raising / waiving annual guarantee / surcharge bills etc., in the respective

previous years are passed through Prior Period Adjustment Account. Income & Expenses relating to Prior

Period less than Rs. 5.00 lakhs is being charged to th Current Year Income & Expenses accordingly.

b) Income & Expenditure of extra - ordinary nature are booked in the current year as per pronouncement of the

relevant accounting standard.

c) Stale Cheque Liability existing in the books for more than 10 years is written back on yearly basis unless other

wise decided.

Share Issue Expenditure is amortized over a period of 10 (ten) Years..

a) The Company's primary segments consist of activities of Power Generation, Manufacture of Coke & By-

products and Processing of Raw Water.

85

b) Inter-Segment transfers are valued at rates approved by the Board of Directors.

c) The Company also maintains common service and central workshop units for which apportionment of

common expenses and depreciation to the various segments have been done at pre-determined rates as

approved by the management.

d) Unallocated interest on Govt. Loans is apportioned to various segments on the basis of gross average fixed

assets.

The amount received from consumers of power at the time of providing new connections or augmentation of

load towards the cost of service connection including supervision charge as per the regulatory provisions in

the terms of Notification No - 53 / WBERC st-02/04/2013 issued by WBERC is shown as Consumers

Contribution

Liabilities for purchase and other expenses are considered in the accounts on the basis of :

a) Goods Received Notes.

b) Certificate Bills of Contracts for goods or services as available.

c) Certificates from executing authorities for services rendered by various agencies received within 15th June

of the succeeding accounting year.

Under circumstances of any present obligation arising as a result of a past event with a probable outflow of

resources to settle the obligation for which a reliable estimate can be made, provision is made in the

accounts towards such obligation.

Provisions are made in respect of debtors and advances to the extent considered doubtful Receivable from a

Government Company or Department is not considered doubtful. Adequate provisions are also made

against non-moving and obsolete inventories.

Contingent liability represents financial liability which would arise only on the happening off a future event

that cannot be assessed at present. Accordingly such liabilities are not recognized but disclosed in the notes.

Contingent Assets are not recognized in the Financial Statement.

Deferred Tax is recognized on timing differences being the differences between the taxable income and the

accounting income that originate in one period and capable or reversal in one or more subsequent periods.

Deferred tax is measured using the tax rates and the tax laws enacted as at the Balance Sheet Date.

Plant & machineries and other assets including Stores which are prone to pilferage and fire are covered

under insurance for such amount as the management deems proper.

t. Consumers' Contribution :

u. Liability :

v. Provisions, Contingent Liabilities & Contingent Assets :

w. Deferred Taxation :

x. Insurance :

86



Note -23BOther Disclosures(1) Related Party Disclosure

(Rs. in Lakhs)

a) Key Management Personnel

b) Bengal EMTA Coal Mines Ltd. (Jointly Controlled Entity)

c) Investment in subsidiary company - 500 Shares of Rs. 1000/- each in DPL Coke Oven Ltd.

(2) Capital Commitments

(3) (i)

(3) (ii)

Name Designation Nature of Transaction Transaction Value

Shri Ashis Saha Managing Director Remuneration 19.55

Shri P. K. Mitra Advisor (F & A) & CFO Remuneration 8.40

There has been no transaction with the key Management Personal except payment of Salary & Other Emoluments as per terms of employment.

i) Purchase of Coal for Power Plant - Nil (PY - Nil)

ii) Investment - Opening holding (8,30,000 shares)

- Previous year (8,30,000 shares)

- Closing holding (8,30,000 shares)

An Amount of Rs. 9.49 lakhs and Rs. 5.00 lakhs has been written of in respect off Advance given to and Investment made in DPL Coke Oven Ltd. respectively.

There are no pending Capital Commitment at the year end.

The Company has accumulated losses and its Net Worth has been negative. However, all round

efforts including running of Unit No 7 &8 simultaneously to its full potential are being made to turn the

negative net worth into positive. The management is optimistic about the conversion of loan received

from GoWB and accrued interest thereon into equity by the State Government. In the opinion of the

management, the existence of the company on a going concern basis will not at all be affected in the

foreseeable future. DPL is currently under a Restructuring process in terms of Notification vide no.

319/PO/O/C-IV/1E-60/13 (Part VA) dated 08.12.2017 followed up by a subsequent notification no.

328/PO/O/C-IV/1E-60/13 (Part VA) dated 26.12.2018 issued by Govt. of West Bengal. While part of

restructuring i.e. Distribution and Transmission activities have been transferred to WBSEDCL &

WESETCL as Contemplated, operational restructuring and financial restructuring are in process.

Hence, the management does not envisage any issues on the 'Going Concern ' assumptions in

application and preparation of its financial statements.

DPL has been restructured where upon inter alla :

(a) The Distribution and Transmission functions alongwith its associated assets liabilities and human

87

resources have been transferred to West Bengal State Electricity Distribution Company Limited (WBSEDCL)

and West Bengal State Electricity Transmission Company Limited (WBSETCL) respectively w.e.f.

01.01.2019. Accordingly the Assets and Liabilities at book values as on 31.12.2018 in respect of Distribution

and Transmission activities had been identified and held in trust under the respective applicable natural

heads and classification as on 31.03.2019. These Assets & liabilities were transferred subsequently on

mutual consent basis to respective Transferee Companies, by way of Slump Transaction Agreement with

WBSETCL executed on 11.04.2019 and that with WBSEDCL on 30th September 2019 with purchase

consideration of 28.99 Crores and Rs. 101.53 Crores respectively.

The Company will become a wholly Owned Subsidiary of West Bengal Power Development Corporation

Limited (WBPDCL)

Balances under Capital Advances, Advances to Contractors & Suppliers, Trade Receivables, Deposits &

Other Receivables . Trade payables, Security Deposits are under reconciliation / confirmation & respective

consequential adjustment.

The Company has bifurcated its assets & liabilities into Current & Non - Current based on the judgement made

by the management and expected realisation / payment of the relevant asset & liabilities.

In the opinion of the Board of Directors and best of their knowledge and belief the assets other than Fixed

Assets & Non-current Investments have a value on realisation in the ordinary course of business not less than

the amount at which they are stated in the Balance Sheet.

The Company has not received information from vendors regarding their status under Micro, Small & Medium

Enterprise Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year and

together with interest paid / payable under this Act Could not be given. However , Identification of vendors

falling under MSME Act is under process.

During the financial yearr 2019-20 Missing and Misdirected Coal Wagons have been accounted for on the

basis of Bill / Railway Receipt. The amount of claim on account of Missing Coal wagons on Railway as on

31.03.2020 was Rs. 8847.32 lakhs and the amount of Railway's Claim on DPL for Misdirected Wagons as on

31.03.2020 was Rs. 18490.75 lakhs . Accounting Adjustment (if any) will be made on completion of final

reconciliation and confirmation of balances. Claim on account of Grade Sllipage ( including Stones &

Boulders) on Coal Companies as on 31.03.2020 considered through joint sampling to the extent of Rs. 37.06

lakhs is in the process of settlement.

The short lifting compensation, if any under Fuel Supply Agreement for 2019-20 is yet to be determined

through a process of reconciliation and confirmation between the Durgapur Projects Limited and Coal

Companies. The necessary accounting adjustments willl be made as and when the said process of

reconciliation and confirmation is completed. Management does not expects the same to be material in value.

(b)

3(iii)

3(iv)

3(v)

3(vi)

4(a)

4(b)

88

5.

6.

7. Quantitative Information

Considering the accumulated losses and absence of reasonable certainty as regards the future taxable

profits, no deffered tax arises.

Pending reconcillation with WBSEDCL with regard to transactions both in the past as well as current and

amount received from WBSEDCL on adhoc basis, the amount shown under 'Trade Receivables' has not been

netted off with Liabilities.

Particulars Actual Production Actual Sales

2) Power Planti) Energy 2231.728 Mkwh 2343.22Mkwh 1982.728Mkwh 2287.473Mkwh

3) Water Worksi) Process Water 10596.36 Mltr 11184.13 Mltr 10833.44 Mltr. 11302.27Mltr.ii) Drinking Water 18130.59 Mltr 18718.52.Mltr 17003.016 Mltr 17187.79 Mltr

N.B.Sale of Water includes Inter Plant Transfer

31st March 2020 31st March 2019 31st March 2020 31st March 2019

89

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90



Note : 24

Note - 25

Note - 26

The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance

and slowdown of economic activity. Measures taken to contain the spread off the virus, Including travel

bans, quarantines, social distancing and closure of non-essential services have triggered significant

disruptions of business worldwide, resulting in an economic slowdown. On 24th March 2020 the

Government of India had ordered a nationwide lockdown for 21days which got further extended

subsequently.

In assessing the recover ability of Company's assets such as Loans, Trade Receivable, Inventories etc. the

Company has considered internal and external information up to the date off approval of these financial

results. The company had evaluated impact of this pandemic on its business operations and based on its

review and current indicators of future economic conditions, expects to recover the carrying amount of the

assets.

Pursuant to the execution of slump sale agreement wherin the transmission and distributions business of

the company and its related assets, liabilities, earning capacity and related expense has been transferred

to WBSEDCL and WBSETCL and as such the current year figures are not comparable with that of previous

year.

Previous Year's Figures have been re-grouped / re-arranged, wherever considered necessary.

(Goutam Biswas) (Pranb Kumar Das Sharma) In Terms of our Report of Even Date

(Managing Directorr Director For M C Bhandari & Co.

Chartered Accountants

(FRN- 303002E)

(P. K. Mitra) (Neeraj Jain)

Advisorr (F&A) & CFO Partner

Membership No. 064393

UDIN : 20064393AAAABDU6195

Dated : 27th November , 2020

Place : Kolkata

91

Form No. MGT-11Proxy Form

[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014 as amended]

CIN : U40102WB1961SGC025250

Name of the Company: THE DURGAPUR PROJECTS LIMITED

Registered office: ADMINISTRATIVE BUILDING, DURGAPUR-713 201

_____________________________________________________________________________________

Name of the member (s) :

Registered address:

E-mail Id:

Folio No/ Client Id:

OP ID:

_______________________________________________________________________

I/We, being the member (s) of …………….. shares of the above named company, hereby appoint

1. Name : ………...............................................................................................………..

Address:

E-mail Id:

Signature:……………….. , or failing him

2. Name : ……...............................................................................................…………..

Address:

E-mail Id:

Signature:……………….. , or failing him

92

3. Name: …………................................................................................................................................……..

Address:

E-mail Id:

Signature:……………….. or failing him

As my / our proxy to attend and vote (on a poll) for me / us and on my/our behalf at the ….................……..

Annual general meeting / Extraordinary general meeting of the company, to be held on the ……..........…………

day of …………....… at ……….....…… a.m. / p.m. at …………........…. (Place) and at any adjournment thereof in

respect of such resolutions as are indicated below:

Resolution No.

1………...................................………………..

2 ………....................................……………….

3……....................................…………………..

Signed this …………….........……………………day of ………...........…………………. ….20…………

Signature of shareholder

Signature of Proxy holder(s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the

Registered Office of the Company, not less than 48 hours before the commencement of the

Meeting.

AffixRevenue

Stamp

93

the durgapur projects limited

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