English GUVNL...1 GUJARAT URJA VIKAS NIGAM LIMITED 16TH ANNUAL REPORT 2019-20 CONTENTS Page No. Board of Directors 2 Notice of Adjourned Annual General Meeting 3 Notice 4 Board’

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GUJARAT URJA VIKAS NIGAM LIMITED16TH ANNUAL REPORT 2019-20

CONTENTS Page No.

l Board of Directors 2

l Notice of Adjourned Annual General Meeting 3

l Notice 4

l Board’s Report 7

l Addendum to Board Report 91

l C & AG Comments on Standalone Financial Statements 102

l Independents Auditor’s Report on Standalone Financial Statements 104

l Standalone Balance Sheet 117

l Standalone Statement of Profit & Loss 119

l Standalone Cash Flow Statement 120

l Statement of Changes in equity 122

l Notes to Standalone Financial Statements 124

l C & AG Comments on Consolidated Financial Statements 187

l Independent Auditor’s Report on Consolidated Financial Statement 191

l Consolidated Balance Sheet 230

l Consolidated Statement of Profit & Loss 232

l Conslidated Cash Flow Statement 234

l Consolidated Statement of Changes in equity 236

l Notes to Consolidated Financial Statements 238

l Form AOC. - 1 : Statements Containing Salient Features 355

of Financial Statements of Subsidiary Companies / Associate Company

l Proxy Form 357

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BOARD OF DIRECTORSmt. Sunaina Tomar, IAS (DIN 03435543) Chairman (w.e.f 10.01.2020)Shri Pankaj Joshi, IAS (DIN 01532892) Managing Director (up to 30.08.2019)

Chairman (up to 16.12.2019)Smt. Shahmeena Husain, IAS (DIN 03584560) Managing Director (w.e.f 30.08.2019)Ms. Mona Khandhar, IAS (DIN 06803015) Woman Director (up to 31.08.2019)Shri Roopwant Singh, IAS (DIN 06717937) Govt. Nominee Director (up to 15.06.2020)Shri Milind Torawane, IAS (DIN 03632394) Govt. Nominee Director (w.e.f 15.06.2020)Shri S.B. Khyalia(DIN 02470485) Director (Finance) (upto 01.11.2019)

Now on Deputation to GPCLShri K. M. Bhuva (DIN 07808731) Director (Technical) (up to 29.04.2020)Shri N. N. Misra (DIN 00575501) Independent Director (up to 31.10.2020)Shri R. C. Dhup (DIN 08275424) Independent Director (up to 23.12.2020)

COMPANY SECRETARYShri Parthiv K. Bhatt

ADG OF POLICE (SECURITY)Shri Anupam Singh Gahlaut, IPS

JOINT EXECUTIVE DIRECTORShri H. R. Chaudhari, IPS

BANKERSUCO Bank Syndicate Bank (Now Canara Bank)State Bank of India Indian BankBank of Baroda Allahabad Bank (Now Indian Bank)Dena Bank (now Bank of Baroda) Central Bank of IndiaVijaya Bank (now Bank of Baroda) Bank of IndiaUnion Bank of India Indian Oversease BankCanara Bank Karur Vysya Bank

SR. EXECUTIVES1. Shri K. P. Jangid, GM (Comm.)2. Dr. Nilesh Munshi, GM (HR)3. Smt. SailajaVachhrajani, GM (IPP)4. Shri S.Sen, GM (F&A) & CFO5. Shri H.M Patel, I/c. GM (IT)6. Shri P.M. Patel, I/c. CE (Tech)

STATUTORY AUDITORSM/s. DGSM & Co.Chartered Accountants,Vadodara

SECRETARIAL AUDITORSM/s. Niraj TrivediPracticing Company SecretaryVadodara

COST AUDITORSM/s. Y. S.ThakerCost Accountants,Vadodara

REGISTERED OFFICESardar Patel Vidyut Bhavan,Race Course,Vadodara: 390 007.Phone No. 0265-2310582-86,Fax: 0265-2337918Website: www.guvnl.comCIN : U40109GJ2004SGC045195

SUBSIDIARY COMPANIES1. Gujarat State Electricity Corporation Limited2. Gujarat Energy Transmission Corporation Limited3. Uttar Gujarat Vij Company Limited4. Dakshin Gujarat Vij Company Limited5. Paschim Gujarat Vij Company Limited6. Madhya Gujarat Vij Company Limited

ASSOCIATE COMPANYGujarat Industries Power Company Ltd.,JV OF Subsidiary Company GSECLMahaguj Collieries Limited

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NOTICE OF ADJOURNED SIXTEENTH ANNUAL GENERAL MEETINGTO SHAREHOLDERS

Notice is hereby given that the Adjourned Sixteenth Annual General Meeting of the Members of GujaratUrja Vikas Nigam Limited will be held (at shorter notice under Section 101(1) of the Companies Act, 2013,pursuant to consent received from all the members) on Wednesday, the 20th January, 2021 at 11.00 A.M.at the Conference Room, Energy & Petrochemicals Dept., Block No. 5, 5th Floor, Sachivalaya, Gandhinagar– 382010 (pursuant to consents received from all the members under Section u/s 96(2) (Proviso) of theCompanies Act, 2013) to transact the following business of Original Annual General Meeting held on 30th

December, 2020:

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Financial Statements including Consolidated FinancialStatements of the Company for the financial year ended 31st March, 2020, together with the Boards’Report, the Report of Auditors’ thereon and the Comments of the Comptroller & Auditor General ofIndia, in terms of Section 143(6) of the Companies Act, 2013.

By Order of the Board

Date : 16-01-2021 Parthiv BhattPlace : Vadodara Company Secretary

REGISTERED OFFICE:Sardar Patel Vidyut Bhavan,Race Course,Vadodara – 390 007CIN : U40109GJ2004SGC045195

NOTES:

1. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitled toappoint a proxy to attend and vote on a poll instead of himself and the proxy need not be a memberof the Company. The instrument appointing the proxy should, however, be deposited at the registeredoffice of the Company not less than forty-eight hours before the commencement of the Meeting.

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NOTICENotice is hereby given that the Sixteenth Annual General Meeting of the Members of Gujarat Urja VikasNigam Limited will be held (at shorter notice under Section 101(1) of the Companies Act, 2013, pursuantto consent received from all the members) on Wednesday, the 30th December, 2020 at 1.00 P.M. at theConference Room, Energy & Petrochemicals Dept., Block No. 5, 5th Floor, Sachivalay, Gandhinagar –382010 (pursuant to consents received from all the members under Sectionu/s 96(2) (Proviso) of theCompanies Act, 2013) to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt the Audited Financial Statements including Consolidated FinancialStatements of the Company for the financial year ended 31st March, 2020, together with the Boards’Report, the Report of Auditors’ there on and the Comments of the Comptroller & Auditor General ofIndia, in terms of Section 143(6) of the Companies Act, 2013.

2. To take note of appointment and to authorize the Board of Directors of the Company to fix theremuneration payable to Statutory Auditors of the Company appointed by the Comptroller and AuditorGeneral of India (C & AG), New Delhi, for the Financial Year 2020-21, in terms of the provisions ofSection 139(5) read with Section 142 of the Companies Act, 2013 and if thought fit, to pass, with orwithout modification, the following resolution as an Ordinary Resolution.

“RESOLVED THAT the appointment of M/s. DGSM & Co., Chartered Accountants, Vadodaramade by the Comptroller and Auditor General of India, (C&AG), New Delhi, pursuant to Section139(5) of the Companies Act, 2013, to audit the accounts including consolidated accounts of theCompany for the Financial Year 2020-21 be and is hereby noted AND THAT pursuant to Section139(5) read with Section 142 of the Companies Act, 2013, the Board of Directors of the Company beand is hereby authorized to decide and fix the remuneration and other terms and conditions includingout of pocket expenses, to the Statutory Auditors appointed by the Comptroller and Auditor Generalof India,(C & AG), for the financial year 2020-21.”

SPECIAL BUSINESS

3. To consider and if thought fit, to pass, with or without modification/s, the following resolution as anOrdinary Resolution relating to ratification of remuneration of the Cost Auditors for the Financial Year2020-21:

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“RESOLVED THAT pursuant to the provisions of Section 148 and all other applicable provisions ofthe Companies Act, 2013 and the Companies (Audit and Auditors) Rules, 2014 (including any statutorymodifications or re-enactment thereof, for the time being in force), the remuneration of M/s SantoshJejurkar & Associates., Cost Accountants, Vadodara (Firm Registration No.102697) as CostAuditors of the Company whose appointment and remuneration has been recommended by the AuditCommittee and approved by the Board to conduct the audit of the Cost Accounts / Records maintainedby the Company in respect of Electricity Industry for the Financial Year ending 31st March, 2021 (i.e.Financial Year 2020-21) at the remuneration of Rs. 50,000/- (Rupees Fifty Thousand Only) plusapplicable GST be and is hereby ratified and approved.”

“RESOLVED FURTHER THAT the Board of Directors of the Company (including any Committeethereof) be and is here by authorized to do all such acts, deeds, matters and things and take all suchsteps as may be necessary, proper and expedient to give effect to this resolution.”

By Order of the Board



NOTES:

1. A member entitled to attend and vote at the Annual General Meeting (the “Meeting”) is entitledto appoint a proxy to attend and vote on a poll instead of himself and the proxy need not be amember of the Company. The instrument appointing the proxy should, however, be depositedat the registered office of the Company not less than forty-eight hours before thecommencement of the Meeting.

2. A Statement pursuant to Section 102(1) of the Companies Act, 2013, relating to the Special Businessto be transacted at the Meeting is annexed hereto.

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ANNEXURE TO THE NOTICEEXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013

Item no 3

As per the provisions of Section 148 of the Companies Act, 2013 and as required under the Companies(Audit and Auditors) Rules, 2014, the proposal for appointment of M/s Santosh Jejurkar & Associates,Cost Accountants, Vadodara was placed before the 55th Meeting of the Audit Committee held on 05-08-2020 and as recommended by the Audit Committee, the Board of Directors of your Company has at its100th Meeting held on 5th August, 2020 considered the recommendation and approved the said proposal forappointment of M/s Santosh Jejurkar & Associatesas Cost Auditorto conduct the audit of the Cost Accounts/ Records maintained by the Company in respect of Electricity Industry for the Financial Year ending 31st

March, 2021 (i.e. Financial Year 2020-21) at the remuneration of 50,000/- (Rupees Fifty Thousand only)plus applicable GST, however, that their remuneration shall be subject to the ratification by the Members asrequired under the provisions of sub-section (3) of Section 148 of the Companies Act, 2013.

Hence, as per the provisions of Section 148(3) of the Companies Act, 2013, the remuneration of the CostAuditor is required to be ratified by the Members of the Company. Hence, this Resolution.

None of the Directors and Key Managerial Personnel of the Company and their respective relatives is, inany way, concerned or interested, financially or otherwise, in passing of the Resolution set out at Item No. 3.

The Board commends the Resolution for approval of the Members as Ordinary Resolution.By Order of the Board



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BOARDS’ REPORTTo,

The Members of

GUJARAT URJA VIKAS NIGAM LIMITED.

Your Directors are pleased to present the 16th ANNUAL REPORT together with Audited Stand Alone andConsolidated Financial Statements for the 16th Financial Year ended 31st March, 2020.

STANDALONE FINANCIAL PERFORMANCE:

The Company was operationalized w.e.f. FY 2005-06. The Company has continued its efforts to sustainthe performance and growth momentum over the years. The Company’s financial performance for the yearunder review along with previous year’s figures is summarized below:

The Company is in the business of bulk purchase and sale of power. During the year, the Company sold93,862.41 MUs as compared to 98,695.19 MUs in the previous year to its own Distribution SubsidiaryCompanies viz. MGVCL, PGVCL, DGVCL, UGVCL and through bilateral arrangements and by putting bidsin Power Exchange (IEX & PXI) on day-do-day basis for and on behalf of 4 DISCOMs.

DIVIDEND

The Company being in consolidation phase and to conserve the resources of the Company for futuredevelopment, your Directors do not recommend any dividend on Equity Shares for the Financial Year2019-20.

Sr. No. Particular FY 2019-20 FY 2018-19

1 Total Income 46,39,907.37 44,90,952.06

2 Total Expenditure Before Depreciation, Interest & Tax 46,17,482.19 44,84,784.72

3 Profit Before Depreciation, Interest & Tax 22,425.19 6,167.34

4 Depreciation and Amortization Expenses 615.64 585.60

5 Finance Costs 1,680.01 2,010.81

6 Profit Before Tax 20,129.54 3,570.93

7 Tax Expenses 9,489.96 770.00

8 Profit After Tax 10,639.58 2,800.93

( in Lakhs)

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TECHNICAL PERFORMANCE:

Sr.No. Particulars

For the year ended31st March, 2020

For the year ended31st March, 2019

MUs Amount Amount( in Lakhs) ( in Lakhs)

MUs

1 Purchase of Power 93,862.41 45,99,648.73 98,695.19 44,76,498.62

2 Sale of Power 93,862.41 45,69,242.37 98,695.19 44,08,614.43

The company earned total revenue from Sale of Power to the tune of 45,69,242.37 Lakhs as against44,08,614.43 Lakhs in the previous year. Correspondingly, total expenditure incurred on Purchase of

Power is 45,99,648.73 lakhs as against 44,76,498.62 lakhs in the previous year. The increase in revenuefrom sale of power to the tune of 1,60,627.94 Lakhs (3.64%) and increase in expenditure on Purchase ofPower to the tune of 1,23,150.11 Lakhs (2.75%) is attributable to increase in realization & cost per unit.

The per unit power purchase cost has increased to 4.90 as compared to 4.54 in the previous year. Whilethe per unit realization has gone up to 4.87 as compared to 4.47 in the previous year.

THE AMOUNTS, IF ANY, PROPOSED TO BE CARRIED TO ANY RESERVES IN BALANCE SHEET:

The Company has earned Profit Before Tax (PBT) of 20,129.54 Lakhs as against 3,570.93 Lakhs in theprevious year showing an increase by 16,558.61 Lakhs (i.e. up by 463.71%). Since the Income Tax Act,1961 provides for payment of Minimum Alternate Tax (MAT) on book profit, a provision of 9489.96 Lakhshas been made towards MAT liability (Previous Year: 770.00 Lakhs). This leaves a Profit After Tax (PAT)of 10,639.58 Lakhs (as against 2,800.93 Lakhs in the previous year) which has been transferred toRetained Earnings.

The Company inherited a loss of 73724 Lakhs from erstwhile GEB. Now as a result of making Profit for 15consecutive years, the Company has accumulated profit (Retained Earnings) of 38,638.37 Lakhs (PreviousYear: 27,960.53 Lakhs).

SHARE CAPITAL

The authorized capital of the Company as on 31/03/2020 is 30,000 Crores divided into 3000 Crore equityshares of 10 each. The issued capital of the Company as on 31/03/2020 stood at

23505,75,84,950/- and subscribed and paid up equity share capital of your Company stood at22347,81,19,950/- and share application money as on 31/03/2020 stood at 1157,94,65,000/- During the

year 2019-20, 2575589900 no. of equity shares of 10/- each were allotted to Govt. of Gujarat on Rightsbasis at par against capital contribution to GUVNL for Capital Infusion in Subsidiary Companies/

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implementation of Govt. Schemes pursuant to various Govt. of Gujarat Resolutions including equity sharesof 10/- each worth 50,00,00,000/- allotted to Govt. of Gujarat as a consideration other than cash fortransfer of equity shares of subsidiary company GETCO held by Govt. of Gujarat in favor of GUVNL.

Further after the close of Financial Year 2019-20, the 1639161300 no. of equity shares of 10/- each wereallotted to Govt. of Gujarat on Rights basis at par against capital contribution to GUVNL for Capital Infusionin Subsidiary Companies/implementation of Govt. Schemes pursuant to various Govt. of Gujarat Resolutions/letters. The Paid up Capital as on 30-11-2020 stood at 239869732950/- divided into 23986973295 equityshares of 10/- each.

During the year under review, the Company has not bought back any of its securities, nor issued anyshares as Sweat Equity or Bonus Shares or shares with differential voting rights nor granted any StockOption Scheme to the employees.

SUBSIDY RECEIVABLE FROM GOVT. OF GUJARAT (GoG):

The outstanding Subsidy Receivable from GoG as on 31st March, 2020 of 2,07,842.38 Lakhs has reducedby 1,34,299.19 Lakhs compared to 3,42,141.57 Lakhs as on 31st March, 2019 due to receipt of pastyears’ subsidy in the current year. The break-up of outstanding subsidy receivable amounting to 2,07,842.38Lakhs is summarised as under:

Sr. No. Subsidy

A. GERC Tariff Compensation of Ag. Consumers 14,353.88B. FPPPA Subsidy of Ag. Consumers 1,52,915.11C. 50% Relief to Ag. Consumers in Elect. Bills 40,573.39 TOTAL 2,07,842.38

Amount ( in Lakhs)

INVESTMENT IN SUBSIDIARY COMPANIES:

During FY 2019-20, GUVNL has invested 3,30,815.73 Lakhs in six Subsidiary Companies. The details ofinvestments made with Share Premium in Subsidiary Companies are shown as under:

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Sr.No.

Name of SubsidiaryCompanies ( in Lakhs)

1. GSECL 19,126.55 44,856.79 63,983.342. GETCO 4,270.71 32,295.96 36,566.673. DGVCL 3,116.63 25,118.46 28,235.094. MGVCL 1,981.59 14,059.80 16,041.395. PGVCL 1,02,706.51 55,463.64 1,58,170.156. UGVCL 3,626.37 24,192.72 27,819.09

TOTAL 1,34,828.36 1,95,987.37 3,30,815.73

Share Capital( in Lakhs)

Premium( in Lakhs)

Total

MAINTENANCE OF COST RECORDS:

The Company is required to maintain cost records as specified by the Central Govt. under Sub-section (1)of Section 148 of the Companies Act, 2013. Accordingly, the Company is maintaining requisite Cost recordsand accounts.

SUBSIDIARY/ASSOCIATE COMPANIES:

The Company has following Subsidiary Companies:

1. Gujarat State Electricity Corp. Ltd. - engaged in the generation of electricity

2. Gujarat Energy Transmission Corp. Ltd. - engaged in the transmission of electricity

3. Uttar Gujarat Vij Company Ltd. - engaged in the distribution of electricity

4. Dakshin Gujarat Vij Company Ltd. - engaged in the distribution of electricity

5. Paschim Gujarat Vij Company Ltd. - engaged in the distribution of electricity

6. Madhya Gujarat Vij Company Ltd. - engaged in the distribution of electricity

Further the Company has one Associate Company viz. Gujarat Industries Power Company Limited. TheSubsidiary Company GSECL has one Joint Venture Company viz. Mahaguj Collieries Ltd.

HIGHLIGHTS OF PERFORMANCE OF SUBSIDIARIES, ASSOCIATES AND JOINT VENTURECOMPANIES AND THEIR CONTRIBUTION TO THE OVERALL PERFORMANCE OF THE COMPANYDURING FY 2019-20.

The Performance highlights of the Subsidiaries and Associate included in the Consolidated FinancialStatement of the Company for F.Y. 2019-20 are covered in the separate statement in prescribed formAOC-1 containing salient features of the financial statements of Subsidiaries i.e. GSECL, GETCO, MGVCL,

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DGVCL, PGVCL, UGVCL and Associate Company GIPCL and Joint Venture of subsidiary companyGSECLviz MGCL provided in the Annual Report. However brief highlights of performance of Subsidiaries/Associate and JV of subsidiary company are as under:

Subsidiaries

Sr.No.

Name ofSubsidiary

( in Lakhs)

ShareCapital

Reservesand

Surplus

TotalLiabilities

TotalAssets

Invest-ments

Turnover Profit before

Taxation

ProvisionFor

Taxation

ProfitAfter

Taxation

1 Gujarat

State

Electricity

Corporation

limited

(GSECL) 2,17,108.45 5,70,924.92 21,67,478.30 21,67,478.30 10,585.54 9,63,735.85 14,043.17 2,970.02 11,073.15

2 Gujarat

Energy

Transmission

Corporation

Limited

(GETCO) 75,445.19 6,27,449.35 26,07,127.28 26,07,127.28 13,041.89 3,88,326.08 1,28,566.08 53,654.44 74,911.64

3 Madhya

Gujarat Vij

Company

Limited

(MGVCL) 44,113.14 2,10,276.47 7,05,466.70 7,05,466.70 - 14,04,363.61 14,899.39 1,891.58 13,007.81

4 Dakshin

Gujarat Vij

Company

Limited

(DGVCL) 44,532.15 1,76,892.12 5,40,700.15 5,40,700.15 - 6,41,895.43 12,632.35 6,143.97 6,488.38

5 Paschim

Gujarat Vij

Company

Limited

(PGVCL) 7,34,332.46 1,69,493.16 16,51,518.21 16,51,518.21 - 17,64,355.02 18,891.99 (3,765.22) 22,657.21

6 Uttar

Gujarat Vij

Company

Limited

(UGVCL) 59,259.45 2,68,462.40 7,63,504.22 7,63,504.22 - 12,90,103.15 13,899.08 2,239.02 11,660.06

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Associate/Joint Venture

Sr.No.

Name of Associate /Joint Venture

Shares of Associate/JointVenture held by the company

on the year endProfit / Loss for the year

Net worth asper latest

Balance Sheet

Net worthattributabletoShareholdingas per latest

Balance Sheet

Considered inConsolidation

( in Lakhs)

Profit for theyear as per

latestStatement of

Profit andLoss

1 Gujarat Industries PowerCompany Limited(GIPCL) 2,74,807.15 73,748.17 24,798.38 6,654.98 Associate

2 Mahaguj Collieries 5,419.83 2,167.93 (166.44) (66.58) JointLimited Venture

ofSubsidiaryCompanyGSECL

Descriptionof how there

issignificantinfluence

Further, the Audited Financial statements and related information of the Subsidiary Companies, whereapplicable, will be made available to any member upon request. The Financial Statements of the subsidiarycompanies will also be kept open for inspection at the Registered Office of the Company and that of therespective subsidiary companies/JV of Subsidiary. The Annual Report of Subsidiary Companies andAssociate Company/JV of Subsidiary are also available on the web site of the respective subsidiary/associateCompany.

CONSOLIDATED FINANCIAL RESULTS OF GUVNL AND ITS SIX SUBSIDIARIES, ASSOCIATE-M/S. GIPCL AND JOINT VENTURE (OF GSECL) – M/S. MGCL.

As per the provisions of Section 129(3) of the Companies Act, 2013, every Company having one or moreSubsidiaries, shall in addition to its Standalone Financial Statement has to prepare Consolidated FinancialStatements of the Company and all its Subsidiaries in the same form and manner as that of its own whichshall also be laid before the Annual General Meeting of the Company along with its Standalone FinancialStatements w.e.f. 01/04/2014.

Accordingly, GUVNL has prepared the Consolidated Financial Statements for current FY 2019-20 by

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consolidating the Annual Accounts of its six Subsidiaries, one Associate M/s. Gujarat Industries PowerCompany Ltd. (GIPCL) and Joint Venture (of GSECL) – M/s. Mahaguj Collieries Ltd. (MGCL) as per theprinciples of Consolidation.

This is the 15th year post operationalization of the Companies. The performance of GUVNL and its SubsidiaryCompanies (Sector as a whole) has sustained momentum. The Sector continued to undertake variousmeasures to improve the financial health as well as the internal efficiencies. Resultantly, the Sector hasrecorded Profit after Tax before Non-Controlling Interest & Share of Net Profits of Associate and JointVenture of 2,21,883.17 Lakhs for FY 2019-20 as against corresponding figure of 90,057.00 Lakhs forFY 2018-19.There is an increase in profits by 1,31,826.17 Lakhs i.e. by 146.38%.

The sectoral performance of last two years are summarized as under:

Particulars

( in Lakhs)

A INCOME:1 Revenue from Operations 52,63,462.87 97.57% 49,71,935.08 97.44%2 Other Income 1,30,927.11 2.43% 1,30,404.54 2.56%

TOTAL INCOME: 53,94,389.98 100 % 51,02,339.62 100 %B EXPENSES:1 Cost of Fuel Consumed 6,73,866.15 12.49% 8,92,736.67 17.50%2 Purchase of Power 33,59,336.31 62.27% 30,78,749.64 60.34%3 Employee Benefit Expenses 3,70,429.42 6.87% 3,38,372.31 6.63%4 Finance Costs 1,48,389.18 2.75% 1,65,960.39 3.25%5 Depreciation 4,08,429.70 7.57% 3,65,183.95 7.16%6 Other Expenses 2,15,129.32 3.99% 1,75,644.56 3.44%

TOTAL EXPENSES: 51,75,580.09 95.94% 50,16,647.51 98.32%Profit Before Exceptionalitems and Tax 2,18,809.89 4.06% 85,692.11 1.68%

7 Exceptional items -3,073.28 -4,364.898 Profit Before share of Net

Profits of Associate andJoint Venture 2,21,883.17 90,057.00

9 Share of Profit of Joint Venture 0 010 Share of Profit of Associate 6,654.98 6,836.1111 Profit Before Tax 2,28,538.15 96,893.1112 Tax Expenses 72,623.06 -2,753.5113 Profit for the Year 1,55,915.09 99,646.62

FY2019-20

% of Total Income

FY2018-19

% of Total Income

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CONSOLIDATED FINANCIAL STATEMENTS

Pursuant to provisions of section 129 of the Companies Act, 2013 and in accordance with the applicableAccounting Standards, the Audited Consolidated Financial Statements for F.Y. 2019-20 are provided in theAnnual Report.

SALIENT FEATURES OF THE FINANCIAL STATEMENTS OF SUBSIDIARIES/ASSOCIATE/JVCOMPANIES:

Pursuant to provisions of section 129(3) of the Companies Act, 2013 read with Companies (Accounts)Rules, 2014, a separate statement in prescribed form AOC-1 containing salient features of the financialstatements of Subsidiaries i.e. GSECL,GETCO,MGVCL,DGVCL,PGVCL,UGVCL, Associate CompanyGIPCL and Joint Venture Company (of subsidiary company GSECL) viz. Mahaguj Collieries Limited for theF.Y. 2019-20 is provided in the Annual Report.

INDUSTRY OVERVIEW:

The economic growth of the country is very closely linked with Power Sector. Availability of quality power atreasonable rates is essential for sustained socio economic development. However, being highly capitalintensive in nature, mobilizing adequate financial resources at competitive cost for developing generation,transmission and distribution infrastructure has always been a challenge for the Power Sector. The data ofNation as a whole with respect to gap between demand and supply is given in following table:

Fiscal Year

EnergyRequirement

EnergyAvailability Energy Shortage/Surplus

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

2015-16 1114408 1090851 23557 -2.12016-17 1142929 1135334 7595 -0.72017-18 1213325 1204697 8629 -0.72018-19 1274595 1267526 7070 -0.62019-20 1291010 1284444 6566 -0.5

Source: - LGBR - Central Electricity Authority

POWER SUPPLY POSITION IN THE STATE:

The total generating capacity of the State from various conventional sources at the beginning of the year2019-20 was 18,900 MW. The total installed conventional power generating capacity of the State at the endof financial year 2019-20 is as under:

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Fuel / SectorCapacity as on 31.3.2019 During FY 2019-20 Capacity

as on31.3.2020GSECL

StateOwned

IPP

Pvt.Sector

CentralSector

Capacityde-rated

Capacityadded

Coal/Lignite 4000 1250 5405 3012 1140 1353 13880Gas 970 1354 1147 424 - - 3895Nuclear - - - 559 - - 559Hydro 547 - - 232 - - 779Total 5517 2604 6552 4227 1140 1353 19113

During the year FY 2019-20, conventional capacity to the tune of 1353 MW was added, the details of whichis as under:

Sr.No. Generating Station Fuel Capacity / GUVNL’s

share (MW)

1 GSECL Wanakbori Extension (Unit 8) Coal 8002 NTPC Khargone (Unit 1) Coal 1233 NTPC Lara (Unit 1) Coal 784 NTPC Gadarwara (Unit 1) Coal 1525 Adani Power Mundra

(additional capacity–bid 1) Imported Coal 200

Total 1353

During the year FY 2019-20, conventional capacity to the tune of 1140 MW has become unavailable forgeneration, the details of which are as under:

(In MW)

Sr.No. Generating Station Fuel Remarks

1 Kutch Lignite Thermal Power Lignite 140 Completion of useful lifeStation(Unit1-2)

2 Adani Power Mundra Ltd. – Imported Coal 1000 Termination of PPA -Bid 2 PPA dated 02.02.2007 Hon’ble Supreme Court

Judgment dated 2.07.2019

Total 1140

Capacity (MW)

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The details of Renewable Capacity in the State at the end of FY 2019-20 are as under:(In MW)

Sr.No.

Renewable Source As on31.3.2019

As on31.3.2020

1 Wind 6034 1470 75042 Solar (incl. Rooftop) 2440 518 29583 Biomass & Co-generation 77 5 824 Mini / Small Hydel 61.3 1 62.3

TOTAL 8612 1994 10606

Additionduring year

* Including Wheeling / private generators

POWER PURCHASE:

For meeting the demand of power in the State, power is purchased from all the available sources. Thedetails of power purchased during the year 2018-19 and 2019-20 is as under: (In Million units)

Sr. No. Name of Agency 2019-20

1 NPC 3272 38042 NTPC 23283 214943 SSNNL (Hydro) 91 639

TOTAL CENTRAL SECTOR (1 to 3) 26646 259374 GSEG 365 6035 GIPCL – SLPP 3085 29536 GIPCL – Gas Based 60 1367 GMDC 957 5478 GSECL 22835 183559 GPPC 480 522

TOTAL STATE SECTOR (4 to 9) 27782 2311610 Essar Power Gujarat Ltd - 432611 CLP India (erstwhile GPEC)* 285 -12 Adani - Mundra Power Project 10067 1105213 ACB India Ltd 1405 127014 Coastal Gujarat Pvt. Ltd – Mundra UMPP 12091 11705

TOTAL IPPs (10 to 14) 23848 28353

2018-19

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15 Solar 1959 270216 Wind 7560 821817 Other Renewable 210 25318 Power Exchanges & others 8560 175019 Coal Tolling arrangement 2123 335320 Purchase from DISCOMs 7 180

TOTAL OTHERS (15 to 20) 20419 16456

21 TOTAL POWER PURHCASE 98695 93862

* CLP India (GPEC) - PPA tenure completed in Dec-2018

SUPPLY / DEMAND SCENARIO:

In the end of Mar-2020, the country witnessed nationwide lockdown to mitigate the impact of unprecedentedCOVID-19 pandemic. Consequentially, State witnessed considerable reduction in Power Demand due toshutting down of majority of industries, offices and commercial establishments.

The installed capacity from conventional sources in the State at the end of FY 2019-20 is 19,113 MW (ason 31.3.2020) against the peak level demand of 18,424 MW in FY 2019-20 (Source: SLDC)

Conventional Capacity to the tune of 829 MW is planned to be added in next two financial years (i.e. byMar-2022) to cater the power demand in the State. Moreover, GUVNL shall be tying up Renewable Capacityfrom time to time to meet its Renewable Purchase Obligation (RPO) requirement.

Distribution / Sale of Power:

The bulk power purchased by GUVNL has been supplied to Subsidiary Distribution Companies to meettheir power requirement and to M/s GACL under long term sale agreement. The details of power suppliedduring the year 2018-19 and 2019-20 are as under:-

Sr.No. Name of Company 2018-19 2019-20

1 DGVCL 21042 208602 UGVCL 27325 257793 PGVCL 38254 355364 MGVCL 11826 113075 GACL 241 2006 Others 7 180

TOTAL 98695 93862

(In Million Units)

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Activity of Power Trading during the year:

As a part of strategic cost reduction measures, GUVNL undertakes purchase of power from short termmarket when rate of power available in market is competitive to available own generating stations. Moreover,after meeting power requirement of all the consumers, if any surplus power is available for disposal, GUVNLundertakes sale of this power in short term market in order to ensure optimum utilization of generationstation and reduce power purchase cost.

During FY 2019-20, GUVNL purchased 1744 Million Units at an average rate of 3.53/unit from PowerExchanges as against 8529 Million Units at an average rate of 4.58/unit during FY 2018-19 from PowerExchanges & DEEP Portal, Govt. of India. Moreover, during low demand scenario of FY 2019-20, GUVNLsold power to the tune of 181 Million Units through Power Exchanges at an average rate of 4.14/unit.

In addition, GUVNL has taken various measures to ensure adequate fuel availability to gas based generatingstations for continuous & uninterrupted power supply by its Distribution Companies to the consumers ofState.

Augmentation of Renewable Energy Sources:

(a) Renewable Energy framework

In order to align with the national ambitious target of achieving 175 GW Renewable Energy by 2022,Gujarat has been making continuous efforts for Renewable augmentation for smooth transition to cleanenergy source.

State has been rolling out the Renewable Energy Policies from time to time enabling a conducive frameworkfor development. Following Policies & Guidelines are being notified by State Government for providingimpetus to development of Renewable Energy projects:

l Gujarat Solar Power Policy 2015 (extended vide G.R. dated 09.07.2020)

l Gujarat Wind Power Policy 2016

l Small Hydel Policy 2016

l Gujarat Waste to Energy Policy 2016

l Gujarat Wind – Solar Hybrid Policy 2018

l Policy for Development of Small Scale Distributed Solar Projects 2019

l Policy for allocating land, for development of Solar Projects in the vicinity of existing GETCO substations

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l SURYA – Surya Urja Rooftop Yojana 2019

l Policy for allotment of Government Waste-land for development of Wind / Solar / Wind-Solar HybridParks – 2019

l Amendment to Gujarat Solar Policy 2019 for MSMEs

State has added 1994 MW Renewable capacity during the year FY 2019-20. As on 31.03.2020, State ishaving operational Renewable capacity of 10,606 MW.

(b) Power tie up through competitive bidding – Wind & Solar

(i) In accordance with directives of Hon’ble GERC and adhering the guidelines notified by Ministry ofPower, GUVNL has been tying up new capacity from Wind & Solar projects only through CompetitiveBidding Process followed by e-reverse auction.

(ii) During FY 2019-20, GUVNL has tied up 1441 MW capacity from Renewable sources throughcompetitive bidding and executed long term Power Purchase Agreements – (1250 MW - Grid connectedSolar power and 190.6 MW - Grid connected Wind power)

l Raghanesda Solar Park – 600 MW capacity tied up at 2.65 – 2.70 / unit (in May-2019 & August-2019)

l Wind Projects – 190.6 MW capacity tied up at 2.80/ unit. (May-2019)

l Dholera Solar Park – 300 MW capacity tied up at 2.75 / unit. (in May-2019 & August-2019)

l Non-park Solar projects – bidding for 350 MW capacity concluded with tariff discovered at 2.61-2.64/unit – PPA executed in July-2020

(iii) During FY 2019-20, GUVNL has also invited tender for procurement of 700 MW power from Projectsto be set up at Dholera Solar Park, Gulf of Khambhat region, Gujarat. Bidding process has concludedin August – 2020.

(c) Procurement of power from Waste to Energy Projects

(i) During FY 2019-20, GUVNL has executed a PPA for purchase of 14.9 MW power from MunicipalSolid Waste (MSW) based Project proposed to be set up at Vadodara, Gujarat.

(ii) GUVNL is having total tie up capacity of 67.2 MW from Municipal Solid Waste (MSW) based Projectsas on 31.03.2020.

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(d) Renewable Purchase Obligation (RPO)

GUVNL has achieved RPO of 13% against the RPO of 14.30% stipulated by Hon’ble Gujarat ElectricityRegulatory Commission for FY 2019-20.

DETAILS OF SIGNIFICANT AND MATERIAL ORDERS PASSED BY REGULATORS DURING FY 2019-20

(i) Hon’ble GERC vide tariff order dated 24.04.2019 has determined Retail Tariff to be recovered byGUVNL’s Distribution companies from its consumers during FY 2019-20 (with effect from 1.05.2019)

(ii) Hon’ble GERC vide order dated 29.04.2019 & 25.09.2019 has determined Additional Surcharge tobe recovered by Distribution Companies from Consumers opting to purchase power from other thanlocal Distribution Company in order to mitigate their fixed cost burden

(iii) Hon’ble GERC vide Notification No. 2/2019 dated 30.09.2019 has notified GERC (ConsumerGrievances Redressal Forum and Ombudsman) Regulations 2019 superseding earlier GERCRegulations No. 2/ 2011 dated 7.04.2011 in the matter.

(iv) Hon’ble GERC vide Notification No. 1/2020 dated 16.01.2020 has notified GERC (Electricity SupplyCode and Related matters) (Second Amendment) Regulations 2020.

(v) Hon’ble GERC vide Notification no. 2/2020 dated 23.01.2020 has notified GERC (Net Metering RooftopSolar PV Grid Interactive Systems) (Second Amendment) Regulations, 2020

(vi) Hon’ble CERC has notified Framework for Real-Time Market for Electricity wherein Power Exchanges(Indian Energy Exchange & Power Exchange of India Ltd.) will facilitate real time trading of electricitythrough double side closed bid auction. The real-time market would enable purchase or sell of electricityacross the country with trade facility on one hour advance basis. Real time market has beenimplemented w.e.f 1st June 2020.

ANY OTHER SIGNIFICANT MATTER HAVING BEARING ON THE PERFORMANCE OF THE COMPANYUP TO THE DATE OF REPORTING

(i) Energy & Petrochemicals Dept., Govt. of Gujarat vide GR dated 1.12.2018 has issued Policy directivefor revival and rehabilitation of 3 stressed imported coal based power projects in state of Gujaratbased on recommendations of High Power Committee and directed GUVNL to amend the existingPower Purchase Agreements for allowing actual fuel cost to these projects subject to approval ofRegulatory Commission.

During FY 2020-21, Energy & Petrochemicals Dept., Govt. of Gujarat vide Government Resolution(GR) dated 12.06.2020 has revoked above GR dated 1.12.2018 considering the subsequent

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developments, changed market trend of Indonesian coal price and in order to safeguard the interestof consumers and issued new guidelines dated 12.06.2020 to ensure that benefit of reduced coalprice from time to time is passed on to consumers.

(ii) Hon’ble Supreme Court vide judgment dated 02.07.2019 has decided that PPA dated 02.02.2007between GUVNL & M/s Adani Mundra Power Ltd. for purchase of 1000 MW capacity from MundraPower Plant stands terminated with effect from 04.01.2010. GUVNL has filed a Curative Petitionbefore Hon’ble Supreme Court, which is sub-judice as on date. Consequentially, off-take of powerunder this PPA has been discontinued.

Moreover, Adani Power Mundra Ltd. has filed a petition before Central Electricity RegulatoryCommission (CERC) seeking compensation for energy supplied during past period. The matter issub-judice.

(iii) In accordance with Govt. of Gujarat GR dated 1.12.2018, GUVNL has signed Supplemental PPAwith Adani Power for PPA dated 06.02.2007 (Bid 1 PPA) which was approved by Central ElectricityRegulatory Commission vide order dated 12.04.2019.

Since, M/s Adani Power Mundra Ltd. by claiming compensation for past period losses has violatedthe fundamental condition of Govt. of Gujarat GR dated 1.12.2018 regarding absorption of past lossesby Project Developers, GUVNL has filed a petition before Central Electricity Regulatory Commission(CERC) seeking recall of order dated 12.04.2019 granting approval to Supplementary PPA betweenGUVNL & Adani (for PPA dated 06.02.2007). The matter is sub-judice.

(iv) In accordance with Govt. of Gujarat GR dated 1.12.2018, GUVNL has signed Supplemental Agreementwith M/s Essar Power Gujarat Ltd. on 1.03.2019 and filed petition before GERC for approval. Hon’bleGERC vide order dated 27.04.2020 has approved the Supplemental PPA with certain modificationswhich has been challenged by Essar Power Gujarat Ltd. before Appellate Tribunal and thusSupplemental PPA has not materialized as on date.

(v) Ministry of Environment and Forest & Climate Change, Govt. of India has notified EnvironmentProtection Amendment Rules 2015 which mandates all thermal power plants to comply with revisedemission norms. Further, Ministry of Power vide notification dated 30.05.2018 has held that compliancetowards above is of nature of Change in Law. Central Electricity Regulatory Commission vide notificationdated 25.08.2020 has notified Terms and Conditions of Tariff Regulations 2020 (First Amendment)for allowing the capital cost & other cost incurred towards compliance to revised emission norms asa pass through. Appropriate Regulatory Commission shall have to approve the cost incurred towardscompliance to revised environment norms on case to case basis.

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(vi) Ministry of New & Renewable Energy, Govt. of India vide notification dated 13.08.2020 has conveyedthat lockdown due to COVID 19 pandemic be treated as an event of Force Majeure and all RenewableProjects under implementation as on 25.03.2020 shall be given blanket time extension of 5 monthsfor completion of projects.

PROGRESS OF VARIOUS GOVT. SCHEMES:

1. ELECTRIFICATION UNDER TRIBAL AREA SUB-PLAN

Electrification of Agriculture Wells and Petaparas in Tribal Areas under Tribal Area Sub-Plan Schemeis being carried out by DISCOMs. For electrification of AG Wells under Tribal Area, State Governmentis providing Share capital for HT/LT lines, Transformer Centers and Service connection charge.Applicant has to pay Registration Charge, Security deposit, agreement fee and test report fee only.For Electrification of Petaparas under Tribal area, demand from minimum 10 applicants in a group isnecessary.

Share Capital of 27921.00 lakhs was given to GUVNL for the year 2019-20 to electrify 17,300 No.of wells and 02 Nos. of petaparas. Against this, 17,783 wells and 03 No. of petaparas were electrifiedat an expenditure of 27921.17 lakhs.

2. AGRICULTURE CONNECTION (Share Capital)

State Govt. desires to electrify more wells to clear back log of huge pending Agriculture applicationsunder Normal scheme (including Darkzone). However, for release of such connection to Agricultureapplicants, huge financial resources are required by DISCOMs. As the cost of HT, LT line andTransformer center etc. are not being recovered from the applicants under Normal scheme (includingDarkzone), therefore to reduce the financial burden on DISCOMs, state Government is providingfinancial assistance to DISCOMs through GUVNL in the form of share capital contribution.

During the year 2019-20, it was planned to electrify 95,381 No. of Agriculture Wells at an outlay of1,44,315.00 lakhs under Agriculture Well (Normal & Dark Zone) Scheme. Against this, 94,168 No.

of AG Wells have been electrified at an expenditure of 1,44,345.22 lakhs.

3. SCSP AG SCHEME (SHARE CAPITAL)

Electrification of Agriculture wells of SC Farmers under SCSP AG scheme is being carried out byDISCOMs. The certificate of caste issued by Social Welfare Department must be enclosed with theapplication. For electrification of AG Wells , State Government is providing Share capital for HT/LTlines, Transformer Centers and Service connection charge. Applicant has to pay Registration Charge,

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Security deposit, agreement fee and test report fee only.

Provision of 2090 lakhs, to electrify 1190 No. of Ag. wells under SCSP Ag. Scheme, was made forthe year 2019-20. Against this, 1221 No. of Ag. wells have been electrified at an expenditure of

2091.54 Lakhs.

4. KUTIR JYOTI SCHEME

In this Scheme, ST Beneficiaries of Tribal area will get electricity connection free of cost with onepoint wiring and LED/CFL bulb for residential purpose. The BPL family or family whose maximumannual income is 1,50,000 for urban area and 1,20,000 for Rural area is eligible to avail Singlephase lighting connection. List of beneficiaries will be provided by Prayojana Adhikari. 100% Gant isprovided by State Government under KutirJyoti scheme.

Grant of 782.00 lakhs was given to GUVNL to electrify 17,090 No. of Household connections for theyear 2019-20. Against this, 18,483 No. of Household connections were given at an expenditure of

782.02 lakhs.

5. ZUPDA VIJLIKARAN SCHEME

In this Scheme Beneficiaries will get electricity connection with one point wiring and one LED/CFLBulb in the Huts for residential purpose. The BPL family or family whose maximum annual income is

1,50,000 for urban area and 1,20,000 for Rural area is eligible to avail Single phase lightingconnection. List of beneficiaries will be provided by Nagarpalika / Municipal Corporation/TDO. Hutsbuild on land of Gram Panchayat / Government / Nagarpalika/Municipal Corporation can be coveredbut beneficiaries will not right to be owner of land. 100% Grant is provided by State Government.

Grant of 2,288.50 lakhs was given to electrify 39,510 No. of household connections for the year2019-20. Against this, 46,243 No. of household connections were given at an expenditure of

2,288.65 lakhs.

6. SCHEDULE CAST SUB PLAN SCHEME

Applicable to Schedule Caste Beneficiaries residing in urban & rural areas, without income limit. Theexpenditure of erection of LT lines should be covered under the scheme. If the numbers of applicationsare more than 20 Nos. then expenditure of HT lines and Transformer can also be covered under thescheme. All Charges including infrastructure cost provided under this scheme from State Govt. Grant.The certificate of caste issued by Social Welfare Department must be submitted with the application.

Grant of 285.00 lakhs was given for the year 2019-20 for electrification of 5,370 No. of household

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connection of SC beneficiaries. Against this 6,581 No. of household connections of SC beneficiarieswere electrified at an expenditure of 285.48 lakhs.

7. SAGARKHEDU SARVANGI VIKAS YOJANA

Humidity and the saline atmosphere of the Coastal area cause corrosion of Conductors, corrosion ofPoles, failure of Disk and Pin insulators, corrosion of Distribution Boxes, service lines, etc. which inturn affect the quality of power supply. Therefore to improve the infrastructure and uplift the life of thepeople living in the coastal belt, State Government has declared “Sagarkhedu Sarvangi Vikas Yojana”This Scheme is a 12 point Programme, Energy Development is one of them. This Scheme covers 15Coastal Districts namely Valsad, Navsari, Devbhumi Dwarka, Gir Somnath, Surat, Bharuch, Anand,Ahmedabad, Jamnagar, Junagadh, Porbandar, Kutchh, Bhavnagar, Rajkot and Amreli comprising of42 Talukas. Under this scheme activities such as Strengthening of Distribution line, Strengthening ofTransmission Line with Replacement of Conductors, Erection of new 66 KV Substations are carriedout. Due to these activities people residing in coastal belt get benefit such as noticeable reduction inline faults, availability of quality power supply at adequate Voltage, reduction In losses to the Industriesin coastal area, reduction in accidents due to breakage of Conductors, reduction in Transformerfailure and reduction in burning of electric motors, reduction in maintenance cost of lines, reduction inTransmission and distribution losses. The state government is also providing financial fund assistancefor electrification of Ag. wells in coastal area of PGVCL in this scheme.

During the year 2019-20, 42,216.09 lakhs have been spent for strengthening of distribution line withreplacing Conductors, poles, insulators, distribution boxes, service lines, etc, Strengthening ofTransmission lines and creation of new 66 KV sub stations & AG wells under PGVCL’s coastal area,against the contribution of 42,200.00 lakhs received from the State Govt. in the form of sharecapital and grant.

8. KISAN HEET URJA SHAKTI YOJANA (KHUSY)

KHUSY is a High Voltage Distribution System of installing smaller size of Distribution Transformersand there by reduction of LT Lines up to negligible level by converting it into HV Line.

In rural area the existing distribution systems consists of 11KV Lines with lengthy 3 Ph 4 wire LTlines, in this system, the Line Losses are very high, Voltage profile and reliability are also unsatisfactory.

So, to improve Voltage profile in rural area the small capacity of Distribution Transformers are to beinstalled by extending 11KV Line as possible as nearer to the load and Distribution Transformer ofthe capacity of 10, 16 KVA are erected and supply is released to consumer through a short length of

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LT Lines preferably through insulated overhead cables known as Aerial Bunched Cable (ABC)/PVCCable.

In Order to ensure pilferage free system, one of several remedial measures is reducing LT line(System) being exposed to theft. The whole idea is to have Less LT system and gradually move onto LT Less system. Even the short LT Lines are to be laid using ABC/PVC Cables.

During the year 2019-20, it was planned to install 6,048 small capacity transformers at an estimatedcost of 7,500 lakhs under Kisan Heet Urja Shakti Yojna (KHUSY) - HVDS, to improve the voltageprofile and reducing the LT line losses in PGVCL area. Against this, 6,471 Small capacity transformersat a cost of 7,508.40 lakhs have been installed.

9. DISTRIBUTION INFRASTRUCTURE SHIFTING SCHEME (DISS):-

It is essential to shift/replace the distribution lines & related infrastructure in Municipal Corporation,Municipality, Urban development authority, Rural areas if it is obstructing during road widening orobstructing to the existing roads in order to provide the essential service of continuous & reliablepower supply. During the year 2019-20, 11042.64 lakhs have been spent for Shifting of DistributionInfrastructures like 11 KV or 22 KV HT line, LT line& related infrastructure like Transformer Centers,Poles or replacement of over head lines by underground cable/Aerial Bunched Cable, etc.

10. SARDAR KRUSHI JYOTI YOJANA

The Scheme Objective is to improve and enhance public services and facilities through reliable &quality power supply by replacing the old / deteriorated conductors along with associated materialswherever required in Agriculture Feeders in the State. During the year 2019-20, 13757.78 lakhshave been spent under this scheme.

11. GRID CONNECTED SOLAR MICRO GRID FOR AGRICULTURE PUMPS SETS (SKY) SCHEME:-

For the upliftment of the farmers, to increase use of Renewable energy through distributed energysources and to provide electricity to the farmers during the day time, the Energy and PetrochemicalDepartment of the GoG introduced the Surya Shakti KisanYojna (SKY) in June-2018. Under thisscheme, Solar PV systems are provided to farmers. Farmer can meet their daily requirement ofElectricity for irrigation through solar generation. Farmers can also earn additional income by injectingthe surplus energy to the grid. Farmers can get power supply up to 12 hours during day time FY2019-20, total 1574 consumers have been covered on 30 feeders with an expenditure of 17488.36lakhs. Aggregate total Capacity of SPV System is 36 M.W.

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12. 3- PHASE POWER SUPPLY TO SIMSHALA:-

Presently, Simshala connections are released from nearby Agriculture feeder through Special DesignedTransformers (SDTs), i.e., for 8 hrs 3-phase and for remaining hrs single phase power supply isprovided.

To maintain the technical stability of the power system, the electricity supply is provided to agriculturesector by forming various groups. Accordingly, agricultural feeders are provided power supply duringday and night on rotation basis.

As reliability of Power supply in JGY/ CPS (Continuous Power Supply) is better compared to AgricultureFeeder, it is proposed to provide power supply to Simshala from nearby JGY/ CPS (ContinuousPower Supply) feeder by shifting them from Agriculture feeder. Such connections will be cateredpower supply through LT ABC/ HT ABC or HVDS to avoid theft and prevent accidents.

Fund of 6.67 Cr is allotted during FY 2019-20, which was utilized for giving 3-ph power supply to 54nos. of Simshalas.

AWARDS/PRIZES:

The State of Gujarat and GUVNL & Subsidiary Companies received various awards/prizes for outstandingachievements in the Energy Sector. The details of F.Y. 2019-20 further to the details already given in thelast Annual Report are given here under.

l Subsidiary Company GETCO received IPPAI Power Award 2019-Trophy & Certificate for “Best StateTransmission Utility - Public” given by Shri Harry Dhaul, Director General of IPPAI on 07-12-2019.

l Subsidiary Company PGVCL received IPPAI Power Award 2019-Trophy for Runner Up in the topperforming distribution utility category given by IPPAI – 20th IPPAI Retreat held at Goa on 07-12-2019.

l Gujarat SLDC received IPPAI Power Award 2019-Certificate for “Heterogeneous Communicationscheme between Control Centre and strategic data Centre nodes synchro phasor analytics addressingintegration challenges for power transmission system with use of Phasor Measurement Unit (PMU)data (Wide Area Monitoring System (WAMS) Optimal Wind Generation Forecase (WGF)-Real Time(RT) daa integration” given by IPPAI – 20th IPPAI Retreat held at Goa on 07-12-2019.

l Gujarat SLDC received IPPAI Power Award 2019-Certificate for “Best State Load Dispatch Centre-SLDC” given by IPPAI-20th IPPAI Retreat held at Goa on 07-12-2019.

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l Subsidiary Company DGVCL received Outstanding State DISCOM supporting green energy uptake-Trophy & Certificate for “taking initiatives to promote use of renewable energy” given by IndianFederation of Green Energy-New Delhi on 16-12-2019.

l Subsidiary Company GETCO received CBIP Awards -Trophy & Certificate for “Best State TransmissionUtility – Public” given by CBIP New Delhi, Shri Rattan Lal Katara, Hon’ble Minister of State, Ministryof Jalshakti on 19-02-2020.

l Subsidiary Company UGVCL received CBIP Awards-Trophy & Certificate- winner in Best StatePerforming Power Distribution Utility category given by CBIP New Delhi on 19-02-2020.

l Subsidiary Company PGVCL received 4th ISGF Innovation Awards-2020-Certificate for “AMR forHigh Tension (HT) Consumer” given by ISGF, New Delhi on 06-03-2020.

l Subsidiary Company PGVCL received 4th ISGF Innovation Awards-2020-Certificate for GPRS basedSpot Billing System- “A path from manual billing to Online Billing “given by ISGF, New Delhi on 06-03-2020.

l GUVNL- GPRD Cell received SKOCH Digital India & e-Governance Award 2020 (SKOCH Order ofMerit) - Certificate for “Geo Urja Easy Survey Mobile App” given by SKOCH Group, New Delhi on30-07-2020.

l Subsidiary Company GETCO received SKOCH Digital India & e-Governance Award 2020 (SKOCHOrder of Merit)- Certificate for Communication Highway-Optical Fiber Ground Wire given by SKOCHGroup, New Delhi on 30-07-2020.

l Subsidiary Company PGVCL received SKOCH Digital India & e-Governance Award 2020 (SKOCHOrder of Merit)- Certificate for Flashpoint and Query & Response given by SKOCH Group, New Delhion 30-07-2020

l Subsidiary Company PGVCL received SKOCH Digital India & e-Governance Award 2020 (SKOCHOrder of Merit)- Certificate for Managerial Tool of 41 Activities given by SKOCH Group, New Delhi on30-07-2020.

l Subsidiary Company PGVCL received SKOCH Digital India & e-Governance Award 2020 (SKOCHOrder of Merit)- Certificate for Big Data Analysis by PGVCL given by SKOCH Group, New Delhi on30-07-2020.

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BRIEF DETAILS OF E-URJA PROJECT & INITIATIVES TAKEN FOR VARIOUS IT ACTIVITIES:

l Implemented On-line Portal for Rooftop Solar PV system for residential segment under the SustainableRooftop Implementation for Surya Gujarat Scheme.

l Integration of Surya Gujarat Portal with e-Urja, CEI Portal and Torrent power ERP, MNRE SPINPortal.

l Implement payment portal for “Surya Gujarat” yojna.

l In-house software developed and implemented for on-line recruitment exam and conducted exam forthe post of CFM/COA held at Gandhinagar TPS.

l Tender Process Management System (TPMS) is successfully implemented for all Discoms.

l GUVNL Management Dashboard is under development and is in implementation phase.

l Renewal of Oracle Annual Technical Support (ATS) for e-Urja up to 24-02-2022 for smooth operationof existing e-Urja system.

l Tender floated for Renewal of Oracle Annual Technical Support (ATS) for R-APDRP project.

l LOI is issued for Renewal of e-Urja Maintenance support up to 05-08-2021.

l Implementation of auto email and SMS feature for HT Energy Bill.

l Implemented relief declared by GOG under COVID-19, fix charge relief for LT and demand chargeHT Consumers.

l New Energy bill Print format (as per 10 X 15) is Developed for DISCOMs.

l Asset Management module is developed in IFAS (in house Accounting Software) and deployed andimplemented across all DISCOMS.

l In GETCO and GSECL asset audited by CAG using IFAS Asset Management software.

GETRI ACTIVITIES:

Gujarat Energy Training and Research Institute (GETRI), an ISO 9001: 2015 Institution, located at Vadodara,is an autonomous institute promoted by Gujarat Urja Vikas Nigam Limited (GUVNL) and its group companiesand registered under Bombay Public Trust Act. This Institute has been established with a view to provide aplatform for continuous development of employees by imparting various training, supported by researchand documentation of best practices needed in the modern era.

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To provide training at the GUVNL’s subsidiary Companies’ door steps, GETRI has 12 training units calledGujarat Energy Knowledge Centre (GEKCs) across Gujarat, which include 10 Centres for Distribution, onefor Transmission and one for Generation, located at Surat, Vadodara, Vallabh Vidyanagar, Sabarmati,Mahesana, Rajkot, Jamnagar, Porbandar, Bhuj, Bhavnagar, Vadodara (GETCO) and Wanakbori (PowerStation) respectively.

GETRI is well equipped with Hi-Tech infrastructural facilities for conducting different courses on technicalas well as management subjects covering the needs of Thermal, Hydro, Transmission & Distribution Systems,and Energy related fields of the Indian Power and allied Energy sectors. The Institute is furnished with awell stocked Library housing national journals and reference materials; it has fully air conditioned modernclassrooms, computer lab, conference hall and auditorium with latest teaching aids, Wi-Fi enabled campus,well-furnished residential hostel for executives with modern lodging and boarding facilities, gymnasium andplayground.

GETRI activities / achievements during Year 2019-20 are as under:-

l GETRI has trained total 84,511 employees of GUVNL & its Subsidiary Companies achieving totaltraining Man-days of 1,13,172.

l GETRI has organized 4 batches of “Induction Training” for newly recruited JE(VS) and MT promotedto JE, of DISCOMs in which 107 engineers were trained. GETRI has also organized 3 batches ofRefresher Training Programs for Junior Engineers of DISCOMs in which 75 engineers were trained.

l GEKCs of GSECL & DISCOMs cumulatively conducted 57 batches of Induction Training for 3898class-III & IV employees.

l 1,854 Man-days were achieved by deputing GUVNL and Companies’ employees for external trainingprogrammes conducted by various renowned Institutions/ organizations in the power sector like ESCI,NPTI, RECIPMT, PGCIL, HLTC, IEEMA, ISGF, Power Line, CPRI, ABB, GIDM, BEE, BIS, GERMI,TATA POWER, CII, CBIP, ERDA, PDPU, SPIPA, BMA etc.

l Training programmes on “Safety” were conducted at GETRI and all GEKCs. 507 employees of GSECL(in 15 programmes conducted), 1966 employees of GETCO (in 123 Safety training sessions conducted)and 1070 employees of 4 DISCOMs (in 35 programmes conducted) were trained in the year.

Apart from the regular announced training programmes, GETRI conducted a few need of- the-hour trainingprogrammes.

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Training Details during Year 2019-20:

Sr.No. Training Particulars No. of

TrainingProgrammes

No. ofTrainingMan-day

01 GETRI 260 6,964 15,19102 External Training 142 748 1,85403 GEKC Wanakbori 81 2,879 7,07004 GEKC GETCO 452 7,531 8,44405 GEKCs DISCOMs 1,543 58,119 73,22206 Other in-house trainings (i.e. Corporate,

Power Stations, Zone, Circle, Divisionetc. level) 144 8,270 7,391

TOTAL 2,622 84,511 1,13,172

No. ofEmployees

Trained

HUMAN RESOURCES:

Company endeavors to provide an environment so that each employee is motivated to contribute his / herbest to achieve the Company’s Goals/Objectives. The Company has taken series of proactive HR initiativesincluding need based training and development programmes with special emphasis on developingcompetencies of employees and thereby enhancing organizational effectiveness. The number of employeesworking in GUVNL as on 01-04-19 were 287, during the year 24 employees were added and 28 employeesreduced and number of employees as on 31-03-20 were 283.

INDUSTRIAL RELATIONS DURING THE YEAR:

The overall Industrial Relations under GUVNL and its subsidiary companies remained harmonious and nomajor incidence of industrial unrest occurred during the whole year.

STAFF WELFARE ACTIVITIES:

Employee Welfare plays an important role to cultivate the qualities of greater involvement and deeper unityamongst the employees and also works as motivation to the employees. GUVNL has taken utmost careand given ample importance in the field of welfare activities. Apart from Statutory Welfare Provisions, theCompany has given due importance to the non-statutory welfare activities. A good number of welfareactivities have continued to be handled in GUVNL even for subsidiary companies for the sake of synergy,coordination and functional needs. A number of staff welfare activities were carried out during the year likesports, AIESCB tournaments, Grant to Employees Organization for cultural programmes, Inter Company

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Music Competition, Inter Company Drama Competition, Loans to cooperative Society, Staff VoluntaryRetirement cum death Benevolent Fund Scheme, Merit Awards to the employees and their family membersfor their bright performance in the field of Education, Sports and Fine Arts, Sports Complex at Vidyutnagarcolony, Vadodara, Gymnasium at Corporate office, Colony and GETRI etc.

The Summary of Sexual harassment compliant received and disposed of during the year 2019-2020.

No. of Compliant received: NilNo. of Compliant disposed of: Nil

DIRECTORS :

A. Changes in Directors and Key Managerial Personnel

The changes among the Directors and Key Managerial Personnel during the year and up to the dateof reportare as under:

Ms. Mona Khandhar, IAS (DIN 06803015) was transferred and posted as Minister (Economic &Commerce) at EoI, Tokyo, Japan by the Government. Consequently, she tendered her resignationdated 31-08-2019 as Director from the Board of Directors of the Company which was accepted by theBoard with effect from 31st August, 2019.

The Finance Department, Government of Gujarat vide OFFICE ORDER No. JNV/10/2011/720764/Adated 1st October, 2019 nominated/appointed Shri Roopwant Singh, IAS (DIN 06717937) on theBoard of the Company as Nominee Director representing Finance Department, Govt. of Gujarat viceShri Milind Torawane,IAS. The Board vide Circular Resolution passed on 15-10-2019 appointedShri Roopwant Singh, IAS (DIN 06717937) Secretary (Expenditure), Finance Dept., Government ofGujarat as a Nominee Director representing Finance Dept., Government of Gujarat w.e.f. 01-10-2019 vice Shri Milind Torawane, IAS (DIN 03632394).

The Government of Gujarat vide Notification No. AIS/35.2019/53/G dated 12th December, 2019 issuedby the General Administration Department, appointed Smt. Sunaina Tomar, IAS as Principal Secretary,Energy & Petrochemicals Department vice Shri Pankaj Joshi, IAS transferred as Addl. Chief Secretary,Finance Department, Govt. of Gujarat. Consequently, Shri Pankaj Joshi, IAS, Chairman has tenderedhis resignation w.e.f. 16-12-2019 from the Board of Directors of the Company.

The Govt. of Gujarat vide Notification No. AIS/35.2019/30/G dated 30.08.2019 appointed Smt.Shahmeena Husain, IAS as Managing Director of the Company vice Shri Pankaj Joshi, IAS transferredas Principal Secretary, Energy & Petrochemicals Department, Govt. of Gujarat. Accordingly

32


Smt. Shahmeena Husain, IAS (DIN 03584560) was appointed as an Additional Director and also asManaging Director w.e.f. 30-08-2019 vide Board Resolution passed at the 96th Board Meeting held on17-09-2019.

Smt. Shahmeena Husain, IAS(DIN 03584560) has been appointed as Managing Director of theCompany with effect from 30th August, 2019 vide Board Resolution passed on 17th September, 2019.She was regularized as Director at 15th Annual General Meeting held on 30-12-2019, continuing asthe Managing Director of the Company.

The Govt. of Gujarat vide E&P Dept., Govt. of Gujarat Order No. GUV-13-2012-2059-K dated 25th

October, 2019 deputed Shri S.B.Khyalia (DIN-02470485), Director (Finance), GUVNL as ManagingDirector, Gujarat Power Corporation Limited, Gandhinagar and accordingly he relinquished the chargeof Director (Finance), GUVNL on 01-11-2019. The Board at its 97th meeting held on 11-11-2019accepted the consequent resignation of Shri S. B. Khyalia from the Board of Directors of GUVNLw.e.f. 01-11-2019 to comply with formalities of cessation as Board member during the period ofdeputation as per aforesaid Govt. Order as may be amended by Govt. from time to time.

The Finance Department, Government of Gujarat vide OFFICE ORDER No. JNV/10/2011/720764/Adated 8th June, 2020 issued by Finance Department, Government of Gujarat nominated Shri MilindTorawane, IAS (DIN 03632394) Secretary (Economic Affairs), Finance Dept., Government of Gujaratas a Nominee Director representing Finance Dept., Government of Gujarat w.e.f. 15-06-2020 pursuantto Section 161(3) of the Companies Act, 2013 and in terms of Article 70 of the Articles of Associationof the Company vice Shri Roopwant Singh, IAS (DIN 06717937).

The Govt. of Gujarat vide Notification No. AIS/35.2019/53/G dated 12th December, 2019 of the GeneralAdministration Department, Government of Gujarat appointed Smt. Sunaina Tomar, IAS as PrincipalSecretary (now Additional Chief Secretary), Energy & Petrochemicals Department vice Shri PankajJoshi, IAS transferred as Addl. Chief Secretary, Finance Department, Govt. of Gujarat. Accordinglythe Board at its 98th meeting held on 20-12-2019 noted the nomination/appointment of Smt. SunainaTomar, IAS (DIN 03435543) as Chairman of the Company with effect from 10th January, 2020.

In terms of the Energy & Petrochemicals Dept., Govt. of Gujarat Order No. GUV-13-2017-221-Kdated 8th March, 2019, the term of Shri K. M. Bhuva (DIN 07808731) as Director (Technical) on theBoard of Directors of Gujarat Urja Vikas Nigam Ltd. ended on 28.04.2020. In view of same,Shri K. M. Bhuva tendered his resignation as Director(Technical) from the Board of Directors of theCompany with effect from 29-04-2020 which was accepted by the Board w.e.f. 29-04-2020 videcircular resolution passed on 13-05-2020.

33


Further, as per the E&P Dept. Govt. of Gujarat vide letter No. GUV-1108-3747-K dated 05-10-2018,GUVNL appointed following two Independent Directors for a first term of two years as under:

Company

Shri N. N. MisraDIN 00575501 01.11.2018 2 Years 31.10.2020Shri R. C. DhupDIN 08275424 24.12.2018 2 Years 23.12.2020

Name of IndependentDirector

Date ofAppointment

Term ofAppointment

Date of expiryof term

Sr.No.

1 GUVNL

The first term of two years of aforesaid Independent Directors has expired/will expire as aforesaidand a Company being wholly owned Govt. of Gujarat Company, a proposal has been submitted wellin advance to the Govt. of Gujarat for renewal of the term and the approval of the Govt. is awaited ason the date of this report.

B. Declaration of Independent Directors :

Pursuant to the provisions of Section 149(6)/(7) of the Companies Act, 2013 and the relevant Rules,the Company has received necessary declarations from Independent Directors Shri N. N. Misra(DIN-00575501) and Shri R. C. Dhup (DIN- 08275424) for the FY 2019-20 confirming that they meetthe criteria of independence as prescribed under the Act.

Further the Ministry of Corporate Affairs, Govt. of India issued two notifications on 22/10/2019 regardinginclusion of name of Independent Directors in the database of Independent Directors to be maintainedby the Indian Institute of Corporate Affairs (IICA) and clearance of proficiency test by the IndependentDirectors. The said notifications are effective from 01/12/2019.

Both the existing IDs of GUVNL have already registered their names in the database maintained bythe Institute IICA. Shri N. N. Misra is exempted from passing proficiency test while Shri R. C. Dhuphas already passed the online proficiency test.

C. Board Evaluation

The Board of Directors has carried out an annual evaluation of its own performance, Board committeesand individual directors including Independent Directors pursuant to the provisions of the Act.

The performance of the Board was evaluated by the Board after seeking inputs from all the directorson the basis of the criteria such as the Board composition and structure, effectiveness of Boardprocesses, information and functioning, etc.

34


The performance of the committees was evaluated by the Board after seeking inputs from the committeemembers on the basis of the criteria such as the composition of committees, effectiveness of committeemeetings, etc.

The Board reviewed the performance of the individual directors and Independent Directors on thebasis of the criteria such as the contribution of the individual director to the Board and committeemeetings like preparedness on the issues to be discussed, meaningful and constructive contributionand inputs in meetings, etc.

In a separate meeting of independent Directors, performance of non-independent directors,performance of the board as a whole and performance of the Chairman was evaluated, taking intoaccount the views of directors. The same was discussed in the Board meeting, at which the performanceof the Board, its committees and individual directors was also discussed.

D. Policy on Directors’ Appointment etc.

The Company being a Government Company, the provisions of Section 134(3)(e) of the CompaniesAct, 2013 are not applicable in view of the Notification No. GSR-163(E) dated 05-Jun-2015 issued bythe Ministry of Corporate Affairs, Govt. of India.

E. Meetings of the Board and Committees there of

As requiredunder Clause-9 of the Secretarial Standard-1 (SS-1), the details of the number and dateof Meetings of Board of Directors and Committees of the Board held during the Financial Year 2019-20 and the attendance of Directors is as under:

35


Name of Director /Member of Committee

During 2019-20,Total Five (5)

Board Meetingswere held as

under:

During 2019-20,Total Five (5)

AuditCommittee

Meetings wereheld as under:

During 2019-20,Total One (1)meeting of

IndependentDirectors washeld as under:

29.06.201917.09.201911.11.201920.12.201921.03.2020

29-06-201917-09-201911-11-201920-12-201921-03-2020

27-03-2020 11-11-201920-12-2019

Smt. Sunaina Tomar, IAS(w.e.f 10.01.2020) 1/1 -- -- --Shri Pankaj Joshi, IAS(up to 16.12.2019) 3/3 -- -- --Smt. Shahmeena Husain, IAS(Appointed on 30.08.2019) 4/4 - -- 2/2Ms. Mona Khandhar, IAS(up to 31.08.2019) 1/1 -- -- --Shri Milind Torawane, IAS(up to 01.10.2019) 2/0 2/0 - --Shri Roopwant Singh, IAS(Appointed 01.10.2019) 3/2 3/3 -- -Shri N. N. Misra(Appointed 1-11-2018) 5/4 5/4 1/1 2/1Shri R. C. Dhup(Appointed 24-12-2018) 5/5 5/5 1/1 --Shri S. B. Khyalia(up to 01.11.2019) 2/2 - -- --

Shri K. M. Bhuva 5/5 - - 2/2

Meeting heldduring tenure/

Attended

During 2019-20, Total Two

(2) CSRCommitteeMeetings

were held asunder:

Meeting heldduring tenure /

Attended


Attended


Attended

36


CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION:

Since the company is engaged in power trading business, the provisions relating to above details are notapplicable to the Company. However brief details of energy conservation measures taken through Discomsare given hereunder for information.

For the year 2019-20, a total budget provision of 3500.00 lacs was made under Energy ConservationProgramme.

HVDS is Conversion of Low Voltage Distribution System(LVDS) into High Voltage Distribution System(HVDS)by installing smaller size of Distribution Transformers and thereby reduction of LT Lines up to negligiblelevel by converting it into HV Line.

To improve Voltage profile in rural area the small capacity of Distribution Transformers are to be installedby extending 11KV Line as nearer to the load as possible and Distribution Transformer of the capacity of10, 16 KVA are erected and supply is released to consumer through a short length of LT Lines preferablythrough insulated overhead cables known as Aerial Bunched Cable (ABC)/PVC Cable. In Order to ensurepilferage free system, one of several remedial measures is reducing LT line (System) being exposed totheft. The whole idea is to have Less LT system and gradually move on to LT Less system. Even the shortLT Lines are to be laid using ABC/PVC Cables.

During the year 2019-20, Total 1939 Nos. of small capacity transformers installed at the expenditure of 2471.74 lacs.

Further, under Energy conservation a special fund is being allocated for IEC (Information, Education &Communication) purpose for public awareness activities like seminars, raily, urja rangoli, slogan/drawingcompetitions etc. During the year 2019-20, Expenditure of 1028.61 Lacs has been booked against IECactivity.

RESEARCH AND DEVELOPMENT:

The Company has started a Research & Development (R&D) Cell in the campus of IIT, Gandhinagar duringF.Y. 2017-18. The details of Revenue Expenditure & Capital Expenditure incurred on Research &Development (R&D) Cell during the year is as under:

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Particulars

Capital ExpenditureComputers and related Equipments 78.28Less: Depreciation for the year 1.33

Total Capital Expenditure: 76.95Revenue Expenditure:Employee Benefits 100.60Material Consumed 5.16Administrative and Misc. Expenses 50.66Depreciation 3.62

Total Revenue Expenditure: 160.05Total Research and Development Expenditure: 236.99

Amount( in Lakhs)

Technology Absorption and Research & Development

l The Gujarat Power Research and Development (GPRD) is an initiation by Government of Gujarat forGujarat Urja Vikas Nigam Limited (GUVNL) and its subsidiary Companies namely GSECL, GETCO,DGVCL, MGVCL, UGVCL and PGVCL by Energy and Petrochemical Department of Govt of Gujaratvide resolution no: BJT-2015-4915-k1 dated 25.11.2016.

l Govt of Gujarat allots financial grant every year for R&D work. Grant of 500 lacs is allotted forresearch activities in the FY 2019-20.

l The GPRD Cell is engaged in Research and Development activities in the Electricity utility area likeenergy efficiency of power network, Power quality and Power reliability, renewable energy forenvironmental benefits, improving customer services and safety, IT enabled applications, exploringenergy storage, Electric Vehicles etc

l During the years 2019-20, 27 nos of projects of 381.58 Lacs were project costs are approved byvarious committees of GPRD Celland research activities taken on hand by GPRD Cell.

The Key projects of GPRD Cell are as under:

1. GeoUrja

2. Air Break Switch With Earthing Facility Fiber Reinforced Polymer Mounting Channel(ABEB)

3. Maintenance Free, Eco-Friendly, Ready Capsule, Pipe-In-Cage (Pic)Type Earthing

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4. LoRa WAN ( Long Range Wide Area Network

5. Smart Feeder Monitoring System (SFMS) for Power Distribution

6. Watch Dog Transformer(WDT)

7. Patents: The GPRD Patents list:

Sr. No. Name of Research Projects patented

1 Online testing setup for HT consumer metering system2 Stone less dropout fuse3 Conductor stringing device4 Remotely communicable and operable air break switch assembly with earthing facility and

fault passage indicator5 Air break switch with earthing facility and fiber reinforced polymer mounting channel6 Watch Dog Transformer7 Dynamic capacitor bank system for volt ampere reactive compensation of feeder8 Remotely controllable capacitor bank system for volt ampere reactive compensation of

feeder

Moreover, 5 research papers of GPRD Cell have been published in various publications.

8. Awards :

Sr. No. Award Name

1 Skoch Award Certificate Solar Energy Data Management System With MeterConsole And Watch Dog Transformer

2 Skoch Award Certificate Smart Energy Management For The Grid Connected SolarAgriculture Prosumers And Consumers

3 ISGF Award Certificate Iot Based Monitoring And Controlling Of Distributed Solar2020 Energy Resources With Grid Support Through Sky

Type Of Award Received Award For.

FOREIGN EXCHANGE EARNINGS AND OUTGO:

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

39


DIRECTORS’ RESPONSIBILITY STATEMENT:

To the best of knowledge, belief and according to the information received, the Board of Directors confirmas under for the financial year 2019-20 in terms of Section 134(3)(c) of the Companies Act, 2013:

(a) in the preparation of the Annual Accounts, the applicable accounting standards have beenfollowed along with proper explanation relating to material departures;

(b) the Directors had selected such accounting policies and applied them consistently and madejudgments and estimates that are reasonable and prudent so as to give a true and fair view ofthe state of affairs of the Company at the end of the financial year and of the profit and loss ofthe Company for that period;

(c) the Directors had taken proper and sufficient care for the maintenance of adequate accountingrecords in accordance with the provisions of the Companies Act, 2013 for safeguarding theassets of the Company and for preventing and detecting fraud and other irregularities;

(d) the Directors had prepared the annual accounts on a going concern basis;

(e) the Directors had devised proper systems to ensure compliance with the provisions of allapplicable laws and that such systems were adequate and operating effectively.

AUDIT COMMITTEE:

The Audit Committee was constituted on the terms of reference as prescribed under Section 177 of theCompanies Act, 2013 read with Rule 6 of the Companies (Meetings of the Board and its powers) Rules,2014. There were Two meetings held during the Financial Year 2019-20. The recommendations made bythe Audit Committee during the year were accepted by the Board. The Composition of Audit Committee ason 31-03-2020 was as under:

1 Shri Roopwant Singh, IAS Chairman2 Shri N. N. Misra Member3 Shri R. C. Dhup Member4 Smt. Shahmeena Husain, IAS Invitee

CORPORATE SOCIAL RESPONSIBILITY (CSR):

The Company has constituted a ‘Corporate Social Responsibility’ (CSR) Committee In accordance withSection 135 read with the Companies (CSR Policy) Rules, 2014. The Annual Report on Corporate SocialResponsibility activities is attached as Annexure-1 which forms part of this Report. The CSR Policy adopted

40


by the Company is posted on the Company’s website at www.guvnl.com.

VIGIL MECHANISM (WHISTLE BLOWER POLICY):

As required under the provisions of Section 177(9) of the Companies Act, 2013, the Company has establisheda Vigil Mechanism (Whistle Blower Policy). All employees of the Company and Directors on the Board ofthe Company are covered under the Mechanism. The Vigil Mechanism (Whistle Blower Policy) of theCompany is available on the website of the Company at www.guvnl.com.

NOMINATION AND REMUNERATION COMMITTEE AND POLICY:

Pursuant to the provisions of Section 178 of the Companies Act, 2013, the Board of Directors has constitutedNomination and Remuneration Committee. The Ministry of Corporate Affairs, Govt. of India has videNotification No. GSR-163(E) dated 05-Jun-2015 modified the application of provisions of Section 178 forGovernment companies so as to apply the same with regard to appointment of ‘senior management’ andother employees. The Board has on the recommendation of the Committee formulated RemunerationPolicy for senior management and other employees.

The Composition of Nomination and Remuneration Committee as on 31-03-2020 was as under:

1 Shri Roopwant Singh, IAS FD Nominee Director, Chairman2 Shri N. N. Misra Independent Director, Member3 Shri R. C. Dhup Independent Director, Member

RISK MANAGEMENT:

The elements of risk threatening the Company’s existence are very minimal. However, as required bySection 134(3)(n) of the Companies Act, 2013, the Company has framed Risk Management Policy toidentify various elements of risk and steps taken to mitigate the same. As an enterprise engaged in tradingof electricity and a holding Company of six subsidiary companies engaged in the business of generation,transmission and distribution, the Company has always had a systems-based approach to Business RiskManagement. The risk management includes identifying types of risks and their assessment, risk handlingand monitoring and reporting. The Risk Management framework primarily focuses on following elements:

l Risk to Company’s assets and properties

l Employees related risks

l Risks associated with non-compliance of statutory enactments

l Risk of Inflation and Cost Structure

41


l Credit Risk

l Liquidity Risk

l Operational Risk

l Regulatory Risk

l Network Risk

l Fuel availability and price fluctuation Risk

l Risk of monsoon failure

l Risk of compensation to third parties due to electrical accidents and burning of crop

l Risk of dependence on Government of Gujarat for share capital contribution, grants and subsidies

EXTRACT OF ANNUAL RETURN:

The information required to be disclosed pursuant to Section 134(3)(a) of the Companies Act, 2013 withrespect to extract of Annual Return pursuant to the provisions of Section 92 read with Rule-12 of theCompanies (Management and Administration) Rules, 2014 is furnished in Form MGT-9 as Annexure-2 andattached to and forming part of this Report.

RELATED PARTY TRANSACTIONS:

All transactions entered with related parties for the year were on arm’s length basis and were in the ordinarycourse of business. The Company has adopted a Related Party Transactions Policy and Procedure. Allrelated party transactions were placed before the Audit Committee. Omnibus approval was obtained fortransactions which are of repetitive nature.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS:

The Company has in place adequate internal financial controls with reference to financial statementscommensurate with the size and nature of its business.

DISCLOSURE UNDER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION,PROHIBITION & REDRESSAL) ACT, 2013:

In compliance with the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition& Redressal) Act, 2013, an ‘Internal Complaints Committee’ has been constituted in the Company forredressal of complaints against sexual harassment of women employees. During the year under review,the Company had received Nil complaint.

42


AUDITORS:

[A] STATUTORY AUDITORS AND THEIR REPORT:

As your Company is a Govt. Company, M/s. DGSM & Co., Chartered Accountants, Vadodara were appointedas the Statutory Auditors of the Company by the Comptroller and Auditor General of India, New Delhi,(C&AG) to audit the accounts of the Company for the Financial Year 2019-20. They have audited theFinancial Statements(Stand Alone and Consolidated) for the year ended 31-March-2020 and submittedtheir Report.

There were no qualifications, reservations or adverse remarks made by the Auditors (Stand Alone andConsolidated) in their Report except as mentioned hereunder in case of Consolidated Financial Statements.The Notes to the Financial Statements are self-explanatory and therefore, do not call for any furthercomments.

In the Auditors’ Report on Consolidated Financial Statements, the Auditors have reproduced the qualifications/emphasis, if any, of the respective Subsidiary Companies which do not call for any comments in the Directors’Report of the Company. However as a prudent practice, the qualifications of Statutory Auditors of SubsidiaryCompanies reproduced in the Auditors’ Report on Consolidated Financial Statements viz. GSECL, GETCOand UGVC La long with management replies of respective subsidiary company are reproduced as Annexure-3(i), 3(ii) and 3(iii).

The C&AG of India has appointed M/s. DGSM & Co., Chartered Accountants, Vadodara as StatutoryAuditors (Stand Alone and Consolidated) for F.Y. 2020-21. Their remuneration is to be decided by theMembers as per section 142 of the Companies Act,2013. An item of ordinary business has been includedin the notice of ensuing Annual General Meeting in this regard.

[B] C&AG’S COMMENTS:

The Comptroller & Auditor General of India (C&AG) have conducted supplementary audit under Section143 of the Companies Act, 2013 of the Financial Statements(Stand Alone and Consolidated) of the Companyfor the year ended on 31-March-2020.

The C&AG has issued three Comments on Stand Alone Financial Statements for F.Y. 2019-20 vide LetterNo. AMG-III,Hq-II/A/cs/GUVNL/2019-20/ow369 dated 03.12.2020, a copy of which is placed in this AnnualReport. As required by the provisions of Section 134(3)(f), the management reply by the Board is furnishedas Annexure-4 and attached to and forming part of this Report.

Further Comments of C&AG on Consolidated Financial Statements are awaited as on the date of this

43


report. The said comment(s) upon receipt from C&AG along with the management reply by the Board asrequired by the provisions of Section 134(3)(f), will be circulated to the menebers as an Addendum toBoards’ Report separately.

The Subsidiary Companies viz. GETCO, MGVCL, DGVCL and PGVCL have received comments fromC&AG. As a prudent practice, the C&AG Comments of Subsidiary Companies alongwith managementreply of the Board of respective subsidiary company are reproduced as Annexure 5(i) to 5(iv).

[C] COST AUDITOR:

In terms of the provisions of Section 148 of the Companies Act, 2013 and the Companies (Cost Recordsand Cost Audit) Rules, 2014, the Board of Directors appointed M/s Y S Thakar & Co., Cost Accountants,Vadodara as Cost Auditors for the Financial Year 2019-20 for auditing the cost accounting records relatingto Electricity Industry product. The Cost Audit Report for the Financial Year 2019-20 was filed / uploaded onthe MCA Portal on 9-10-2020 within stipulated time.The Board of Directors on recommendation of AuditCommittee appointed M/s Santosh Jerurkar & Associates,Cost Accountants, Vadodaraas a Cost Auditorfor the F.Y. 2020-21. As required under the Section 148 of the Companies Act, 2013 read with Companies(Audit and Auditors) Rules, 2014, the Directors recommend their remuneration for the Financial Year 2020-21 for your ratification.

[D] SECRETARIAL AUDITOR:

In terms of the provisions of Section 204 of the Companies Act, 2013, the Company has appointed M/s.Niraj Trivedi, Practicing Company Secretaries, Vadodara for conducting Secretarial Audit for the FinancialYear 2019-20. M/s. Niraj Trivedi, Practicing Company Secretaries, Vadodara have issued Secretarial AuditReport (Form MR-3) for the Financial Year 2019-20 which is attached as Annexure-6 and is forming part ofthis Report. There were no adverse comments, qualifications or reservations or adverse remarks in theSecretarial Audit Report. The observations made by Secretarial Auditors are self-explanatory and therefore,do not call for any further comments.

OTHER DISCLOSURES:

a) There was no unpaid or unclaimed dividend declared and paid and therefore, no disclosure is requiredto be made pursuant to the provisions of Section 125 of the Companies Act, 2013.

b) There was no change in the nature of business of the Company during the year.

c) No material changes and commitments affecting the financial position of the Company occurredbetween the end of the financial year to which these financial statements relate and the date of thisReport except as stated elsewhere in this report.

44


d) The Company is engaged in the trading of power which is covered under the exemption providedunder Section 186(11) of the Companies Act, 2013 read with Notification No. GSR-163(E) dated05-June-2015 issued by the Ministry of Corporate Affairs, Govt. of India. Accordingly, details of loangiven, investment made or guarantee or security provided by the Company are not required to bereported.

e) The Company has six subsidiary companies, one Associate Company and one Subsidiary CompanyGSECL has a Joint Venture Company as per the details given elsewhere in this report.

f) The Company being a Government Company is exempted as per Gazette notification dated 05/06/2015 issued by the Ministry of Corporate Affairs, Govt. of India, to furnish information as requiredunder Section 197 of the Companies Act, 2013 read with the Rule 5(2) and 5(3) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014.

g) During the year under review, the Company has neither accepted nor renewed any deposits covered/as defined under Chapter-V of the Companies Act, 2013 read with the Companies (Acceptance ofDeposits) Rules, 2014.

h) There were no instances of frauds identified or reported by the Statutory Auditors during the courseof their audit pursuant to Section 143(12) of the Companies Act, 2013.

i) No Significant or material orders were passed by the Regulators or Courts or Tribunals which impactthe going concern status and the Company’s operations in future except as stated elsewhere in thisreport.

j) The Company has complied with the applicable Secretarial Standards.

ACKNOWLEDGEMENT:

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

For and on behalf of the Board

Sd/-Sunaina Tomar, IAS

Chairman(DIN - 03435543)

Date: 24-12-2020Place: Vadodara

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Annexure -1

Annual Report on Corporate Social Responsibility (CSR)activities for the Financial Year 2019-20.

1. A brief outline of the company’s CSR policy, including overview of projects or programsproposed to be undertaken and a reference to the web-link to the CSR policy and projects orprograms.

‘Corporate Social Responsibility (CSR) Policy of Gujarat Urja Vikas Nigam Limited (GUVNL)’encompasses the Company’s philosophy for delineating its responsibility as a corporate citizen andlays down the guidelines and mechanism for undertaking socially relevant programs for welfare andsustainable development of the community at large.

This Policy shall apply to all CSR initiatives and activities taken up by the Company at the Company’sareas of operations and also within the State of Gujarat and in any other parts of the country, for thebenefit of the different segments of the society provided that the preference shall be given to thelocal areas and areas where the Company operates for undertaking the CSR activities.

In alignment with vision of the Company, GUVNL, through its CSR initiatives, shall continue toenhance value creation in the society and in the community in which it operates, through its services,conduct and initiatives, so as to promote sustained growth for the society and community.

The CSR Projects and Programmes undertaken will be within the broad frame work of Schedule VIIof the Companies Act, 2013 and will be identified and funds allocated, on a yearly basis, as per theneed assessment specific to the location, target beneficiary and agency partnering for theimplementation.

The CSR Policy may be accessed on the Company’s website: http://www.guvnl.com

2. The Composition of the CSR Committee

1. Shri Pankaj Joshi, IAS, Managing Director …. Chairman up to 17-09-2019

2. Smt. Shahmeena Husain,IAS …. Chairperson (w.e.f. 17-09-2019)

3. Shri N. N. Misra, Independent Director …. Member (w.e.f. 01-11-2018)

4. Shri S. B. Khyalia, Director (Finance) …. Member (up to 01-11-2019)

5. Shri K. M. Bhuva, Director (Technical) …. Member (up to 29-04-2020)

6. Shri R. C. Dhup, Independent Director …. Member (w.e.f. 05-08-2020)

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3. Average net profit of the Company for last three financial years

Average Net Profit (2016-17 to 2018-19) 10594.58 Lakhs

4. Prescribed CSR Expenditure(two percent of the amount as in item 3 above)

211.89 Lakhs

5. Details of CSR spent during the financial year:-

a) Total amount to be spent for the financial year … 211.89 Lakhs

b) Amount unspent, if any … 74.64 Lakhs

c) Manner in which the amount spent during the financial year as given below:

(1) (2) (3) (4) (5) (6) (7) (8)

Sr.No.

CSR Projector activityidentified

Sector inwhich theproject iscovered

Projects orprograms(1) Localarea orother

(2) specifythe state

and districtwhere

projects orprograms

wasundertaken

Amountoutlay

(budget)project orprogramswise (Rs.)

Amountspent on theprojects orprograms(1) Direct

expenditureon projectsor programs(2) Overhead

(Rs.)

Cumulativeexpenditure

upto thereporting

period

Amountspent: Director through

implementingagency

Promotionof

Education

Vadodara 80 Lakhs 40.55 LakhsNo

overheads

40.55 Lakhs ThroughsubsidiarycompanyMGVCL

2.

1. Constructionof drawinghall, Libraryetc. at VidyutBoardVidyalaya.

Promotionof

Education

Vadodara 50 Lakhs 20.99 LakhsNo

overheads


Misc. Civilworks etc. atVidyut BoardVidyalaya.

47


3. Promotionof

education,ScientificResearch

etc.

Mehsana 25 Lakhs 25.00Lakhs

25 Lakhs ThroughGujaratPower

Education &Research

Foundation

Contributionto GujaratPowerEducation &ResearchFoundation

4. Promotionof

Education

Vadodara 10.00 Lakhs 10.00 Lakhs 10.00 Lakhs ThroughVidyut BoardVidyalaya,Vadodara

Contributionto VidyutBoardVidyalaya,Vadodaratowardsmaintenancecorpus of theSchool

5. Promotingeducationincludingspecial

education,especially

amongspecialchildren

Vadodara 35.00 Lakhs 35.00 LakhsNo

overheads

35.00 Lakhs ThroughGujarat CSR

Authority

Contributionto GujaratCSR Authorityin ‘GCSRASpecialChildren’sFund’ for“Project forSpecialChildren”implementationat OsmosisPlay Centre ,Chhani,Vadodara

6. Promotionof

Education

Vadodara 5.71 Lakhs 5.71 LakhsNo

overheads


Providing 7AC Machinesfor Auditoriumof VidyutBoardVidyalayaANDProvidingstreet lightsetc.for Schoolsecurity atVidyut BoardVidyalaya.

Total 205.71Lakhs

137.25Lakhs

137.25lakhs

48


6. In case, the Company has failed to spend two percent of the average net profit of the lastthree financial years or any part thereof, the Company shall provide the reasons for not/short spending the amount in its Boards’ report:

The financial year 2019-20 was the 6th year for CSR activities under the Companies Act, 2013. TheCompany has spent 137.25 Lakhs during F.Y. 2019-20 against the stipulated 2% amount of

211.89 Lakhs for F.Y. 2019-20. Infact, there is no unspent amount as such for F.Y. 2019-20 butdue to the reasons given below contribution of 74.64 Lakhs to CM Relief Fund for spending onCOVID-19 related activities is not booked under CSR.

The Company has contributed 74.64 Lakhs during F.Y. 2019-20 to the Chief Ministers’ ReliefFund, Gujarat for spending on Covid-19 pandemic related Disaster Management activities. TheMinistry of Corporate Affairs (MCA), Govt. of India had issued clarification dated 23-03-2020 onspending of CSR Funds for COVID-19. Accordingly Company contributed 74.64 Lakhs to CMRelief Fund with approval of CSR Committee and the Board with special objective in the situation forDisaster Relief for spending on COVID-19 affected areas and considered the same as part of CSR.Subsequently, on 10-04-2020, MCA issued Covid-19 related Frequently Asked Questions (FAQs)on CSR wherein it was clarified that CM Relief Fund or State Relief Fund for COVID-19 is notincluded in Schedule VII of the Companies Act, 2013 and therefore, any contribution to such fundsshall not qualify as admissible CSR expenditure.

GUVNL has represented to the Govt. of Gujarat vide letter dated 28-07-2020 to take up the matterwith Ministry of Corporate Affairs, Govt. of India so that contributions made to CM Relief Fund forCOVID-19 by GUVNL and Subsidiary Companies (especially between 23-03-2020 to 10-04-2020)are allowed as Corporate Social Responsibility (CSR) expenditure under schedule VII of theCompanies Act, 2013. Response to the said representation is awaited.

The Board of Directors at its meeting held on 29-09-2020 decided that in view of the clarificationissued by Ministry of Corporate Affairs, Govt. of India vide General Circular No. 15/2020, dated 10th

April 2020 and considering the fact that response to the GUVNL representation to the Govt. ofGujarat is awaited, the Contribution made by the Company to the CM Relief Fund, Gujarat for theF.Y. 2019-20 for spending on Covid-19 related activities may not be booked as CSR Spending forthe F.Y. 2019-20 and the same be considered as Contribution/donation to CM Relief Fund underSection 181 of the Companies Act, 2013.

GUVNL being a Govt. Utility has adopted an approach of supplementing Govt. Schemes and initiatives.This creates a very narrow space for identification and implementation of activities.

49


The Company is in the process of exploring various options for CSR activities that can deliver themaximum impact to society. The Company plans accelerating the pace of its CSR spend in comingyears through structured programmes and projects.

7. Responsibility statement, of the CSR Committee, that the implementation and monitoring ofCSR Policy, is in compliance with CSR objectives and Policy of the Company duly signed byDirector and Chairperson of the CSR Committee.

The CSR Committee of the Company hereby confirms that the implementation and monitoring ofCSR Policy, is in compliance with CSR objectives and Policy of the Company.

Place: VadodaraDate: 26-10-2020

Sd/-(Shahmeena Husain, IAS)

Managing Directorand

Chairman CSR Committee(DIN - 03584560)

50


Annexure-2

FORM NO. MGT-9EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31st March-2020

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Managementand Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

I CIN:- U40109GJ2004SGC045195

II. Registration Date 22-12-2004

III. Name of the Company GUJARAT URJA VIKAS NIGAM LIMITED

IV. Category/Sub-Category of the Company Public Limited Company, Govt. Company

V. Address of the Registered office and contact details Registered & Corporate Office,Sardar Patel Vidyut Bhavan, Race Course,Vadodara-390007.

VI. Whether listed company No

VII. Name, Address and Contact details of Registrarand Transfer Agent, if any NOT APPLICABLE

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated:-

1 Purchase & Sale of Power 35109 100%

Sr.No.

Name and Description ofmain products / services

NIC Code of theProduct/ service

% to total turnover ofthe company

51


III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES –

Name and Address of theCompany

1 Gujarat State Electricity Corpn. U40100GJ1993SGC019988 Subsidiary 100% 2(87)Ltd., Vidyut Bhavan,Race Course, Vadodara :390 007

2 Gujarat Energy Transmission U40100GJ1999SGC036018 Subsidiary 100% 2(87)Corpn. Ltd., Sardar Patel VidyutBhavan, Race Course,Vadodara : 390 007

3 Madhya Gujarat Vij Co. Ltd., U40102GJ2003SGC042907 Subsidiary 100% 2(87)Sardar Patel Vidyut Bhavan,Race Course,Vadodara : 390 007

4 Dakshin Gujarat Vij Co. Ltd., U40102GJ2003SGC042909 Subsidiary 100% 2(87)Urja Sadan, Nana Varachha Road,Kapodara, SURAT : 395006.

5 Uttar Gujarat Vij Co. Ltd., U40102GJ2003SGC042906 Subsidiary 100% 2(87)Visnagar Road, Mehsana :384001

6 Paschim Gujarat Vij Co. Ltd., U40102GJ2003SGC042908 Subsidiary 100% 2(87)Paschim Gujarat Vij Seva Sadan,Off. Nana Mava Main Road,Laxminagar, Rajkot: 360004.

7 Gujarat Industries Power Co. Ltd., L99999GJ1985PLC007868 Associate 26.84% 2(6)P.O. Petrochemicals : 391346Dist. Vadodara, Gujarat

CIN/GLN Holding/Subsidiary/Associate

% of sharesheld

ApplicableSection

Sr.No.

52


IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Share Holding:

Category ofShareholders

No. of Shares held at thebeginning of the year (01-April-2019)

No. of Shares held at the end of theyear (31-March-2020)

%Changeduring

theyear

Demat Physical Total % ofTotal

Shares

Demat Physical Total % ofTotal

Shares

A. Promoters

(1) Indian

a) Individual/HUF 0 0 0 0 0 0 0 0 0

b) Central Govt. 0 0 0 0 0 0 0 0 0

c) State Govt(s) 0 19772222095 19772222095 100 0 22347811995 22347811995 100 0

d) Bodies Corp. 0 0 0 0 0 0 0 0 0

e) Banks / FI 0 0 0 0 0 0 0 0 0

f) Any Other…. 0 0 0 0 0 0 0 0 0

Sub-total (A) (1):- 0 19772222095 19772222095 100 0 22347811995 22347811995 100 0

(2) Foreign 0 0 0 0 0 0 0 0 0

a) NRI Individuals 0 0 0 0 0 0 0 0 0

b) Other Individuals 0 0 0 0 0 0 0 0 0

c) Bodies Corp. 0 0 0 0 0 0 0 0 0

d) Banks / FI 0 0 0 0 0 0 0 0 0

e) Any Other…. 0 0 0 0 0 0 0 0 0

Sub-total (A) (2):- 0 0 0 0 0 0 0 0 0

Total Shareholding of

Promoter (A) =(A)(1)+(A)(2) 0 19772222095 19772222095 100 - 22347811995 22347811995 100 0

B. Public Shareholding

1. Institutions 0 0 0 0 0 0 0 0 0

a) Mutual Funds 0 0 0 0 0 0 0 0 0

b) Bank / FI. 0 0 0 0 0 0 0 0 0

c) Central Govt. 0 0 0 0 0 0 0 0 0

d) State Govt. 0 0 0 0 0 0 0 0 0

e) Venture Capital Fund. 0 0 0 0 0 0 0 0 0

f) Insurance Companies 0 0 0 0 0 0 0 0 0

g) FIIS 0 0 0 0 0 0 0 0 0

h) Foreign Venture

Capital Fund. 0 0 0 0 0 0 0 0 0

53


i) Others (Specify) 0 0 0 0 0 0 0 0 0

Sub-total (B)(1):- 0 0 0 0 0 0 0 0 0

2. Non- Institutions

a) Bodies Corp.

i) Indian 0 0 0 0 0 0 0 0 0

ii) Overseas 0 0 0 0 0 0 0 0 0

b) Individuals

i) Individual shareholders

holding nominal share

capital in excess of

1. lakhs 0 0 0 0 0 0 0 0 0

ii) Individual shareholders

holding nominal share

capital in excess of

1. lakhs 0 0 0 0 0 0 0 0 0

c) Others (specify) 0 0 0 0 0 0 0 0 0

Sub-total (B)(2):- 0 0 0 0 0 0 0 0 0

Total Public Shareholding

(B)=(B)(1)+ (B)(2) 0 0 0 0 0 0 0 0 0

C. Shares held by

Custodian for GDRs & ADRs 0 0 0 0 0 0 0 0 0

Grand Total (A+B+C) 0 19772222095 19772222095 100 - 22347811995 22347811995 100 0

(ii) Shareholding of Promoters:

Shareholder’sName

Shareholding at the beginning ofthe year (01/04/2019)

Shareholding at the end of the year(31/03/2020)

% changein shareholdingduring

theyear

No. ofShares

% of totalShares of

thecompany

% ofShares

Pledged/encumbered

to totalshares

No. ofShares

% of totalShares of

thecompany

% ofShares

Pledged /encumbered

to totalshares

H. E. Governor of Gujaratand his Nominees 19772222095 100 0 22347811995 100 0 0

Total 19772222095 22347811995

54


(iii) Change in Promoters’ Shareholding (please specify, if there is no change):

Particulars


Cumulative Shareholdingduringthe year

No. of Shares % of total sharesof the Company


At the beginning of the year 19772222095 100 19772222095 100H.E.Governor of Gujarat and hisnomineesDate wise Increase / Decrease inPromoters Shareholding duringthe year specifying the reasonsfor increase / decrease, e.g.allotment/transfer/bonus/sweatequity etc.:Increase by way of allotment on:16-04-2019 397609700 0.00 20169831795 0.0029-07-2019 930840000 0.00 21100671795 0.0026-08-2019 50000000 0.00 21150671795 0.0009-12-2019 1088473600 0.00 22239145395 0.0017-01-2020 108666600 0.00 22347811995 0.00At the End of the year 22347811995 100 22347811995 100(31/03/2020)

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters andHolders of GDRs and ADRs):

For Each of the top 10Shareholders


Cumulative Shareholding duringthe year



At the beginning of the yearDate-wise Increase/Decrease inShareholding during the yearspecifying the reasons for increase/decrease(e.g. allotment/transfer/bonus/sweat equity etc.)At the End of the year (or on thedate of separation, if separatedduring the year)

Not Applicable

55


(v) Shareholding of Directors and Key Managerial Personnel:

For Each of theDirectors and KMP

Name

Shareholding at thebeginning of the year

(01-Apr-2019)

CumulativeShareholding

during the year andAs on 31-March-2020

No. ofShares

% of totalshares of

theCompany

Date Increase /Decrease Reason

No. ofShares

% of totalshares of

theCompany

DIRECTORS 00 00 00 00 00 00 00KEY MANAGERIALPERSONNEL 00 00 00 00 00 00 00Note : None of the Directors and KMP hold any Equity Shares in the Company.

V. INDEBTEDNESS (AS ON 31-MARCH-2020):

Indebtedness of the Company including interest outstanding/accrued but not due forpayment

( in Lakhs)

Indebtedness at the beginningof the financial year

Secured Loansexcludingdeposits

UnsecuredLoans

Deposits TotalIndebtedness

i) Principal Amount 25,454.94 14,498.49 0.00 39,953.43ii) Interest Accrued and Due 2.33 0.00 0.00 2.33iii) Interest accrued but not Due 0.00 284.13 0.00 284.13

Total (i+ii+iii) 25,457.27 14,782.62 0.00 40,239.89Change in Indebtedness duringthe financial yearl Addition 0.00 0.00 0.00 0.00l Reduction (2,653.28) (2,024.88) 0.00 (4,678.16)Net Change (2,653.28) (2,024.88) 0.00 (4,678.16)Indebtedness at theend of the financial yeari) Principal Amount 22,803.99 12,566.22 0.00 35,370.21ii) Interest Accrued and Due 0.00 0.00 0.00 0.00iii) Interest Accrued but not Due 0.00 191.52 0.00 191.52

Total (i+ii+iii) 22,803.99 12,757.74 0.00 35,561.73

56


VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (F.Y.2019-20)

A. Remuneration to Managing Director, Whole-time Directors and/or Manager:

( in Lakhs)

Particulars ofRemuneration

Shri PankajJoshi, IAS MDUp to 30-08-19

Smt.ShahmeenaHusain, IAS

MDw.e.f. 30-08-19

Shri S. B.KhyaliaDirector

(Finance)(upto

01.11.2019)

TotalAmount

In LakhsSr.No.

Name of MD/WTD/Manager

Shri K. M.Bhuva

Director(Technical)

1. Gross salarya) Salary as per 12.80 15.16 20.70 8.78 57.44provisions containedin section 17(1) of theIncome-tax Act, 1961b) Value of perquisites 1.27 1.30 2.06 0.86 5.49u/s 17(2) Income-taxAct, 1961c) Profits in lieu of Nil Nil Nil Nil Nilsalary under section17(3) Income tax Act,1961

2. Stock Option 0 0 0 0.00 3. Sweat Equity 0 0 0 0.00 4. Commission

- as % of profit- others, specify… 0 0 0 0.00

5. Others, please specify 0 0 0 0.00Total (A) 14.07 16.46 22.76 9.64 62.93Ceiling as per theAct

Not applicable as Section 197 of Companies Act, 2013 shall not apply to GovernmentCompanies.

57


B. Remuneration to other directors (F.Y. 2019-20)

Sr.no.

Particulars ofRemuneration

Name of Directors TotalAmount

Rs.IndependentDirectors Other Non-Executive Directors

Shri N. N.Misra

ShriR.C.Dhup

Smt.SunianaTomar,

IAS (wef10.01.20)

ShriPankaj

Joshi, IAS(up to

16.12.19)

ShriRoopwantSingh, IAS

Shri MilindTorawane,IAS (Upto01.01.19)

Ms. MonaKhandhar,

IAS

1 IndependentDirectorsl Fee forattending Board/committeemeetings in 30000 30000 0 0 0 0 0 60000

l Commission 0 0 0 0 0 0 0 0l Others, pleasespecify 0 0 0 0

Total (1) 30000 30000 0 0 0 0 0 60000 2 Other Non-

ExecutiveDirectors - - 0 0 0 0 0l Fee forattendingboard /committeemeetings - - 0 0 0 0 0

l Commission - - 0 0 0 0 0l Others,please specify 0 0 0 0 0Total (2) 0 0 0 0 0Total (B)=(1+2) 30000 30000 0 0 0 0 0 60000Total ManagerialRemuneration 0 0 0 0 0 0 0Overall Ceiling Not applicable as Section 197 of Companies Act, 2013 shall not applyas per the Actto Government Companies.

58


B. Remuneration to Key Managerial Personnel other than MD/ MANAGER / WTD:

Sr.no. Particulars of Remuneration

Key Managerial Personnel

CEOCompanySecretary

(April 19 toMarch 20)

GM(F&A) &CFO

(April 19 toMarch 20)

Total

1. Gross salarya) Salary as per provisions contained in section 0 26.96 28.55 55.51

17(1) of the Income-tax Act, 1961b) Value of perquisites u/s 17(2) Income-tax 0 0 0 0

Act, 1961c) Profits in lieu of salary under section 17(3) 0 0 0 0

Income-tax Act, 19612. Stock Option 0 0 0 03. Sweat Equity 0 0 0 04. Commission

- as % of profit- others, specify.. 0 0 0 0

5. Others, please specify 0 0 0 0Total 0 26.96 28.55 55.51

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of theCompanies

Act

BriefDescription

Details ofPenalty /

Punishment/Compoundingfees imposed

Authority[RD / NCLT/

COURT]

Appeal made,if any (give

Details)

There were no penalties / punishment / compounding of offences for breach of any section of CompaniesAct against the Company or its Directors or other officers in default, if any, during the year.



Sd/-Sunaina Tomar, IAS


( in Lakhs)

59


Annexure 3(i)

GUJARAT STATE ELECTRICITY CORPORATION LIMITEDGSECL Board’s explanation pursuant to Section 134(3)(f) of the Companies Act, 2013 on qualificationmade by the Statutory Auditors in their Audit Report on the Financial Statements for the FY 2019-20:

Sr.No

Auditors’ Qualifications Response / Remedial Measures

The company recognizes replaced items ofProperty, Plant and Equipment (PPE) as additionof PPE. However, carrying amount of old partswhich are replaced, not derecognized from PPE.This is not in accordance with Ind AS – 16“Property, Plant and Equipment”. The effect ofnon-compliance of Ind AS – 16 is notascertainable.

Capital spares are required to be maintained andreplaced as and when required at irregularinterval. Depreciation on plant & machinery ischarged as per the applicable rates, whereasdepreciation on capital spares is charged overuseful life of the Plant & Machinery. ThereforePlant and machinery as well as capital sparesare depreciated on regular basis as specifiedunder IND AS-16 At the time of replacement ofcapital spares, original cost for the wholeequipment may be available but the cost ofdamaged spares parts cannot be determinedbecause the same were purchased in lot alongwith group of machineries. As such, depreciationcharged up to the date of replacement is alsonot ascertainable. The replaced spares has notutility and therefore market value is not available.Negligible value is considered for these specifiedspares. This practice is commonly adopted byall the Companies engaged in generation ofpower. Therefore, the company has also adoptedthe same since beginning.

Further to state that Fixed assets are normallybeing installed for more than 15 to 20 years andpolices regarding treatment of fixed assets & therelated capital spares and its depreciation are

1.

60


being consistently followed since the inceptionof the company and any sudden change aftercompletion of substantial period of usage of fixedassets may distort the profitability statement ofthe company.

Capital spares that can be used only in relationto specific assets are to be discarded only whenthe specific fixed assets is disposed off. In otherword such spares are an integral part of fixedassets which also get depreciated over a periodof useful life of assets.

And when the related assets are discarded, theWDV of related capital spares is also to be writtenoff. Hence in a broader sense the WDV of fixedassets would be considered rather thanconsidering WDV of the capital spares at the timeof replacement..

Depreciation is being continually charged on thecapital spares even though replaced during anyof the year of the useful life of the assets insteadof writing off WDV in to the profit and lossaccount in the year of replacement Henceexpense are just postponed during the residuallife of the fixed assets Thus. Profitability will getset off at the end of life of the relevant fixedassets. Hence true and fair view of the profitabilityof all respective years remains intact.

2. The company recognizes capital spares as PPEand other spares as inventory based on pre-defined code system and not in accordance withrequirement of Ind AS – 2 ‘Inventories’ and Ind –AS 16 ‘Property, Plant and Equipment’. The effect

While treating the item as capital or revenuecompany has to see its usefulness and benefitsto be derived over a period of time. Companyhas treated spares as capital in nature andclassified as property plant and equipment whose

61


benefits are enduring in nature and met thedefinition of property plant and equipment. Whilethe routine operation and maintenance sparesare classified under the inventory and chargedto revenue as and when consumed formaintenance purpose and accordingly pre-defined code in e urja system is assigned.

of such non-compliance of Ind AS - 2 and IndAS -16 is not ascertainable

3. Balances under the group of Other financialassets, other current assets, other currentfinancial liabilities and trade payables are subjectto confirmation and effect on these balances onaccount of adjustment, if any required upon suchconfirmation are not determinable.

Balance under other financial assets is mainlyrelated to deposit given to railways authority,Irrigation department, other governmentdepartment for land acquisition & depository workand loans and advances given to employeeswhich all are highly secured.

Balance under other current assets is related tothe advances given to coal supplier which areregularly adjusted on receipt of coal.

Balance under other financial liabilities mainlybelongs to Staff Retirement cum Death BenefitScheme, staff welfare scheme and currentliability belongs to loans from Banks and financialinstitution, retention in form of LD and provisionfor expenses. Bank Balances and dues to SECLand WCL are reconciled on regular basis. Forother balances it is customary of the companyto write letter to parties for confirmation.

62


Annexure 3(ii)

GUJARAT ENERGY TRANSMISSION CORPORATION LIMITEDGETCO Board’s explanation pursuant to Section 134(3)(f) of the Companies Act, 2013 on qualificationmade by the Statutory Auditors in their Audit Report on the Financial Statements for the FY 2019-20:

Sr.No

Audit Qualifications Management Reply

The Company has reversed revenue fromtransmission charges amounting to 12,629Lakhs on the basis of debit note received fromthe Holding Company, M/s. Gujarat Urja VikasNigam Ltd., (GUVNL) vide GERC’s Tariff Orderdated 26-03-2020, Case No. 1837 of 2019, whichclearly states that it is effective from 1st April,2020. However, the Company has given theeffect of the same during the Financial Year2019-2020. The impact of the said surplusamounting to 12,629 Lakhs has already beenconsidered / adjusted by GERC whiledetermining the tariff for financial year 2020-2021. Hence, the profit for the financial year2019-2020 is understated to that extent andliabilities of GUVNL as on March 31st, 2020 isoverstated to that extent.

1. In accordance with MYT framework, GETCO hadfiled petition for True-up of FY 2018-19 anddetermination of tariff for FY 2020-21 beforeGERC in the year FY 2019-20. GERC hasundertaken True-up of expenses of GETCO forFY 2018-19. In the True-up exercise, GERC hasarrived at a revenue surplus of 132.94 Crore.

It is to mention that the determination of revenuesurplus/deficit to be recovered and the mode andtiming of recovery are two distinct aspects. Theformer determines the surplus/deficit revenuecharged by GETCO to its consumers based ondifference between actual and rate determinedbased on MYT framework and the latter as tohow that is to be made good to the consumer.

The implementation of tariff w.e.f. 1st April 2020is with respect to applicability of revisedtransmission charges. Whereas, the creditamount is with respect to surplus amountrecovered by GETCO in previous year FY 2018-19 for which effect was given in the year FY 2019-20, upon receipt of the order determining thesame.

It is to mention that under the regulatory regime,the treatment for revenue surplus / loss pursuant

63


to True up exercise is to be given as per theprovisions of Multi Year Tariff Regulations.Whereas, for finalization of Accounts, thetreatment for such gain/loss is to be givenfollowing the provisions of Accounting Standards.

As per the Regulatory provisions, the surplus /loss of previous year i.e. FY 2018-19 is to beadjusted in the tariff of ensuing year i.e. FY 2020-21. While as per Accounting Standards, anylosses/gain on account of variation in priceadjustment of the year is to be accounted upondetermination of the same. As per the Standards,such variable price/revenue adjustments, evenwhere such gain/loss of respective year isdetermined after completion of such financialyear but before finalization of accounts, the sameneeds to be accounted for.

In case of GETCO, the surplus for FY 2018-19was recognized vide Order dated 26.3.2020 i.e.before finalization of Accounts for FY 2019-20.Accordingly, as per the prudent accountingpractice, such surplus amount was accountedfor and necessary credit adjustment was givenin FY 2019-20 i.e. immediately upondetermination of the same before finalization ofaccounts. To reiterate, price adjustment i.e.revenue surplus was determined as of the yearend, only the timing of recovery of such surplusis effective from 1st April 2020.

Since, as per MYT Regulations, the recovery ofthe determined revenue surplus of FY 2018-19is to be given in FY 2020-21, GUVNL has, inorder to meet with regulatory requirements, has

64


already reversed the concerned Debit Note inthe current FY 2020-21 for the equivalentamount. This is akin to the regular accountingpractice for accrual of liability or unbilled revenuewhere they are recognised based on accrualconcept and reversed in the subsequent periodwhen actually invoiced/billed and accounted, soas to ensure no duplication.

2. The vendor-wise details of liabilities for the supplyof Capital Materials reflected in the Account Code42100 amounting to 16,631.33 Lakhs as onMarch 31st, 2020 are maintained in an MS ExcelSheet and the vendor-wise Ledger Accounts arenot maintained by the Company which are alsonot reconciled with the subsequent paymentsmade to the vendor/s. Hence, we are unable tocomment on the correctness of the vendor-wiseoutstanding balance as on March 31st, 2020.

The account code no. 42100 – Liability for Supplyof Capital Materials is maintained since GEB eraand in unbundling of GEB’s regime also. GETCOis reconciling the accounts of the Parties for theirsupplies the booking and recording of thetransactions and payments for their outstandingbalances and due payments with actualverification of Invoices, payment vouchers etc.Auditors’ point that account is manuallymaintained, is not true as GETCO is maintainingthe same in Excel since we are not keepingSubsidiary / Control ledger. However, GETCOmay initiate to explore the possibility ofmaintaining vendor-wise ledgers within thesystem framework and apprise the auditor in nextaudit of FY 2020-21.

3. The Other Financial Liabilities which are notbifurcated into Current and Non-Current Liabilityas required by IND-AS 1 (Presentation ofFinancial Statements) are as follows:-

a. Deposits received from Suppliers /Contractors amounting to 20,884.90 Lakhs

b. Retention Money received from Suppliers /Contractors amounting to 58,739.47 Lakhs

GETCO carries out the activity of constructionof Transmission Lines and Substations throughLabour Contracts, Civil Contracts as well asthrough engineering, procurement andcommissioning contracts (EPC Contracts). Asper the terms of the contracts, the completionperiod of majority of the contacts are eithercompleted or to be completed in the year 2020-21. There are possibilities of extension of the

65


Hence, the impact, if any, for not arriving at thefair value measurement of the Non-Currentportion of such deposits/Retention Money as perIND-AS 109 (Financial Instruments) on thefinancials as of March 31st, 2020, could not beascertained.

Completion period due to Right of Way issuesas well as other Ground level issues. However,as of now exact payback period/ time frame ofthis Retention Money and Security Depositcannot be ascertained/determined and henceGETCO has classified the same as CurrentLiability.

4. The Company has not capitalised BorrowingCosts to the projects grouped under Capital Workin Progress in the financial year 2019-2020(except Capitalisation of Borrowing Costspertaining to KFW projects). Due to the non-capitalisation of Borrowing Costs to the CapitalWork in Progress (except Capitalisation ofBorrowing Costs pertaining to KFW projects) inthe financial year 2019-2020 as per IND-AS 23(Borrowing Costs), the impact on profitability ofthe Company and the Capital Work in Progresson the financials as of March 31st, 2020 couldnot be ascertained.

It is to mention that during the last 3 years,GETCO has been consistently striving to reduceits borrowings and interest cost. The same canbe visible from the Borrowings of GETCO (exceptCC balance) as on 31.3.2017 was 8969.02crores which has now reduced to 5080.52crores as on 31.3.2020. Further the interest coston borrowings has also reduced from 742.53crores as on 31.3.2017 to 453.04 crores as on31.3.2020. Further in FY 2017-18, 2018-19 and2019-20, the major debt funding for CAPEX isdone from loan from KfW, whose interest iscapitalized on dedicated projects.

Further we would also like to draw to kindattention to the Cash Flow Statement wherein itcan be referred, on an overall basis, that thecompany had generated sufficient Cash Flowfrom Operations to fund the Investing activitiesas well as pay down the loans on net basis.

Further we would also like to mention the factthe substantially all of the projects for which termloans were taken from banks have beencommissioned and hence there is no interestcapitalization on such commissioned projects inFY 2019-20.

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Annexure 3(iii)

UTTAR GUJARAT VIJ COMPANY LIMITEDUGVCL Board’s explanation pursuant to Section 134(3)(f) of the Companies Act, 2013 on qualificationmade by the Statutory Auditors in their Audit Report on the Financial Statements for the FY 2019-20:

Qualification Board’s Explanation

We draw attention to note No. 40 to the Ind ASfinancial statements wherein the Company haschanged the method of accounting regarding writingback balances from grants/consumer contributionrelated to certain depreciable assets from hitherto10% on reducing balance basis to 5.28% on straightline basis prospectively commencing from thefinancial year 2016/17. However, in our opinion theeffect of such change has to be worked outretrospectively commencing from the date on whichthe depreciable assets related to which the grants/consumer contribution has been received have beencapitalized in the books of account and effect of suchchange be accounted for in the opening balance ofgrants/ consumer contribution.

Non accounting of the above effect has resulted intounderstatement of balance of grants/consumercontribution as on 31st March, 2020 by 18,934.82lakhs and overstatement of balance of ‘RetainedEarnings’ by like amount. Had the above beenaccounted for, the balance of grants/consumercontribution would have been 1,66,292.7 lakhs andbalance of ‘Retained Earnings’ would have been

15,353.51 lakhs as on 31st March, 2020 as againstthe reported figures of 1,47,357.84 and 34288.33lakhs respectively.

GUVNL, the Holding Company, on behalf of allDISCOM’s has obtained opinion on the said subjectmatter from M/s. Khimji Kunverji & Co., LLP,Mumbai, a well-known and reputed professional CAFirm. They have also confirmed the correctness ofthe treatment given by DISCOMs including UGVCL.The said Opinion was shared with Statutory Auditor.Further, the same was also submitted by GUVNLto C&AG with a request to consider the same forthe ongoing observation taken by Statutory Auditorof UGVCL and by C&AG in case of other groupcompanies.

The accounting treatment followed by UGVCL is aconsidered decision taken by GUVNL and all theDISCOMs. Also, all four DISCOMs have followedthe same accounting treatment during the FY 2016-17, FY 2017-18, FY 2018-19 and FY 2019-20.

UGVCL has, therefore, changed the method ofrecognizing grants as income from ReducingBalance Method (RBM) to Straight Line Method(SLM). The change in the rates is consequential tothe change, i.e. from 10% RBM to 5.28% SLM.The change in the method and consequentially therates is to exactly match the depreciation methodand the rates where there was a mismatch. This

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change is not a change in the principle ofrecognition of grants but only a change in themethod, as permissible and in compliance with therelevant Indian Accounting Standards (Ind AS) asapplicable. Given that it is a change in estimate,the effect of the same is required to be givenprospectively and not retrospectively as contendedby Statutory Auditor. Hence, the treatment givenby the Company, as opined the above-mentionedeminent CA Firm, is correct and in compliance withthe applicable Indian Accounting Standards (Ind –AS).

Date: 19-12-2020Place: Gandhinagar

For and on behalf of the Board,

Sd/-

Shahmeena Husain, IAS

Chairperson

(DIN – 03584560)

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Annexure 4

GUJARAT URJA VIKAS NIGAM LIMITED

Management Reply to the Comments of the Comptroller and Auditor General of India received from AGOffice, Ahmedabad under Section 143(6)(b) of the Companies Act, 2013 on the Standalone FinancialStatements of Gujarat Urja Vikas Nigam Limited, Vadodara for the year ended 31st March, 2020.

C&AG’s Comments Board’s Explanation

A. Comment on Financial Position

1. Other Financial Liabilities (Note 23)

Deposits and retentions from Suppliers/Contractors 1,21,145.52 lakh.

The above does not include 182.57 crore withheldby GUVNL from monthly power purchase bills of sixseparate IL&FS Group wind power Companies fromNovember 2018 to 14th October 2019 with whomthe Company is having Power PurchaseAgreements (PPA). The Company has beentransferred to its CPF Trust to set-off losses to itsCPF Trust due to non-receipt of interest and principalamount against investment made in three IL&FSgroup companies that defaulted on interestpayments due on 30 th September 2018 andonwards.

As the matter is sub-judice in NCLT, the set off ofreceivable and payable is not admissible. Thisresulted in understatement of Deposits & Retentionsfrom suppliers (other Financial Liability) by 182.57crore and consequent Understatement ofRecoverable from CPF Trust (Other FinancialAssets).

The National Company Law Tribunal (NCLT) hastreated IL&FS & its 348 Group Companies as acomposite entity for the purpose of Resolution Planto be drawn by the newly constituted Board ofIL&FS at the behest of Govt. of India. Therefore,GUVNL has withheld the dues of 6 Wind GeneratingCompanies of the same IL&FS Group. IL&FSstarted defaulting on the interest payments to thePF Trust and was referred to NCLT. Logically,GUVNL being the parent Company did not releasethe dues to the Wind Generating Companies (whobelongs to the same group) because its own CPFTrust’s investments are at stake and 100% recoveryis doubtful at this point of time.

GUVNL firmly believes that IL&FS Group is requiredto “equitably set-off” the money due to GUVNL’sCPF Trust from its 3 Group Companies (viz. IL&FSTransportation Network Limited, InfrastructureLeasing & Financial Services Limited and IL&FSFinancial Services Limited) from any money dueto any of the Companies of IL&FS Group fromGUVNL.

Therefore, GUVNL is legally entitled to withhold any

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payment from the payment of electricity generatedand supplied by IL&FS Wind GeneratingCompanies, pending final Resolution at NCLT. Itwould be unfair, unjust, un-equitable and illegal ifGUVNL is required to pay the claims of the WindGenerating Companies, while IL&FS GroupCompanies are not discharging their obligations topay to GUVNL’s PF Trust - the amount due towardsinvestment made as financial creditors.

IL&FS Wind Generating Companies approachedHon’ble GERC, but without any success. At thesame time, they also approached NationalCompany Law Appellate Tribunal (NCLAT), NewDelhi. During hearing of this matter, Hon’ble NCLAThas rejected / dismissed their claims on the withhelddues and allowed them to withdraw theirapplications vide its Order dt. 23.10.2019.

GUVNL withheld the principal and its interest duestotaling to 18256.66 lakhs from IL&FS WindGenerating Companies and thereaftersubsequently had transferred the same to CPFTrust. The Resolution proceedings are presentlygoing on in NCLT. After all, GUVNL had retainedthis amount on behalf of the CPF Trust towardsrecovery of the investments. Therefore, it was alogical decision and conclusion to transfer the sameto the Trust, pending final Resolution plan of NCLT.

Therefore, there is no understatement of Deposits&Retentions from suppliers (other Financial Liability)by 182.57 crore and consequent Understatementof Recoverable from CPF Trust (Other FinancialAssets).

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2. Balance SheetNon-Current AssetsInvestments(Note 3)

2, 59, 017.46 Crore

The above includes 488.33 crores being shareapplication money paid towards issue of EquityShares on right basis to Gujarat State ElectricityCorporation Limited (GSECL) as on 31st March,2020.

As per the Guidance note on Division II IndASSchedule III to the Companies Act 2013, anyapplication money paid towards securities wheresecurity has not been allotted on the date of BalanceSheet shall be disclosed as a separate line itemunder other non-current financial assets.

As the equity shares have not been allotted on thebalance sheet date, inclusion of share applicationmoney in Investment resulted in understatement ofNon-Current Other Financial Assets andoverstatement of Investments by 488.33 crore.

As per the laid down procedure, GUVNL hadintimated GSECL about the share capitalinvestment of 48833.34 lakhs vide letter Dt.06.12.2019. GSECL had opened the Rights Issueon 26.03.2020 to which GUVNL subscribed & paidthe share capital money on or before 31.03.2020.Therefore, GUVNL had completed all formalitieswith regard to the share capital investment inGSECL on or before 31.03.2020. Accordingly, theCompany has shown this entire amount asInvestment in GSECL in the Financial Statements ofFY 2019-20. GSECL subsequently allotted the sharesto GUVNL in the next financial year FY 2020-21.

GUVNL has shown this as Investment in equityshares, though unallotted as of the Balance Sheetdate, on “substance over form basis”, given theCompany’s view that share allotment is a secretarialcompliance. Given the relationship of the entities(i.e. Holding and Subsidiary), history of such capitalinfusion every year and the lack of problemssurrounding minimum subscription, etc., shareallotment by GSECL is a mere secretarialcompliance.

The Guidance Note on Division-II IndAS Schedule-III to the Companies Act, 2013 states that theapplication money paid towards securities whichhave not been allotted on the date of the BalanceSheet is to be shown separately. However, thisGuidance Note is recommendatory in nature andnot mandatory. Division-II of IndAS Schedule-III ismandatory which does not have such arequirement.

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Therefore, there is no understatement of Non-Current Other Financial Assets and overstatementof Investments by 488.33 crore.

B. Comment on Disclosures

3. Notes to Financial StatementsRelated party Disclosures (Note 44B)Allocation of e-Urja Expenses 2026.98 lakhs

A reference is invited to the above Note No. 44B,which discloses allocation of e-Urja expenses. TheCompany was allocating the “E-Urja expenses” toits Group Companies based on number of registeredusers in the respective Company until FY 2017-18.However, the Company stopped this practice from2018-19 and started recognizing the entireexpenditure in its books of accounts. However, inFY 2019-20, the Company reverted to it’s previouspolicy which was followed until 2017-18.

The Company should have disclosed this changein accounting treatment in reference to previousyears in its Notes to financial statements. The Notesare therefore deficient to that extent.

GUVNL in the earlier years (upto FY 2017-18) hadcharged / allocated e-Urja expenditure amongst itsSubsidiaries as a matter of its charging policy whichwas reviewed in FY 2018-19 and the practice wasdiscontinued the Policy to change the expenditureor to bear the same by the holding Company wasbased on consideration of commercial aspects andis not an accounting policy.

However, based on C&AG’s observations in theFY 2018-19, the Company once again reviewedits allocation / charging policy and decided to revertback to its original allocation policy followed uptoFY 2017-18. This position of charging / allocatingexpenditure is a matter of ongoing considerationby the Company and hence no separate disclosurewas made in the Books of Accounts. The FinancialStatements continues to represent faithful FinancialPosition, Financial Performance and Cash Flowsof the Company.

For & On behalf of the Comptroller andAuditor General of India.

Sd/-(H. K. Dharmadarshi)

Principal Accountant General (Audit-II),Gujarat

Dated: 03-12-2020Place: Ahmedabad

For & On behalf of Gujarat Urja Vikas Nigam Limited,

Sd/-(Sunaina Tomar, IAS)

Chairperson (DIN: 03435543)

Dated: 24-12-2020Place: Vadodara

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Annexure 5(i)

GUJARAT ENERGY TRANSMISSION CORPORATION LIMITED

Management Reply to the comment of the Comptroller and Auditor General of India under Section 143(6)(b)of the Companies Act, 2013 on the Accounts of Gujarat Energy Transmission Corporation Limited,Vadodara for the year ended March 31st, 2020.

Sr.No

Comment Reply

Comments on Financial Position

Balance Sheet

Equity and Liabilities

Deferred Government Grants, Subsidies andConsumer Contribution (Note No. 19)

1973.49 crore

A reference is invited to Note no. 64 of theFinancial Statement, which stated that with effectfrom 01st April 2016, the Company has changedthe method of computing the grants/consumercontribution received against depreciable assetsto be recognized in statement of profit and lossfrom reducing balance method to the straight linemethod and consequently the rates at whichgrant is recognized in the statement of profit andloss.

The Company has determined that the changeto recognize grants in proportion of thedepreciation expenses is a change in accountingestimates and is to be applied prospectively.

As per Accounting Standard (AS)-12, Grants

A. C&AG’s comment is on the financial position i.e.Balance Sheet, particularly on Subsidies andConsumer Contributions with reference to NoteNo. 64 which states that the Company haschanged the method of computing the grants/consumer contribution received againstdepreciable assets to be recognized in Statementof Profit and Loss from Reducing BalanceMethod to the Straight Line Method andconsequently the rates at which grant isrecognized in the Statement of Profit and Loss.It may be noted that this is a repeat commentpertaining to Financial Statements of theCompany for FY 2016-17, FY 2017-18 and FY2018-19.

At the outset, it may be noted that, the subjectmatter of the comment has no impact on theprofitability of the Company for FY 2019-20. Also,the subject matter of the comment would nothave any impact on the profitability of theCompany in the future financial years also.

As informed and explained in the earlier years,the change in the method of recognition of

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related to depreciable assets are treated asdeferred income which is recognized in the profitand loss statement on a systematic and rationalbasis over the useful life of the asset. IndianAccounting Standard (Ind AS) - 20 also state thatgrants related to depreciable assets are usuallyrecognized in profit or loss over the periods andin the proportions in which depreciation expenseson those assets is recognized.

The above change in method was made by theCompany as there was a mismatch of the grantsrecognized in the Statement of Profit and Lossversus the related depreciation expenses. Thus,the Company has changed the method ofrecognized of deferred income in order to alignthe recognition of deferred income with therelated depreciation expenses. As the provisionfor treatment of deferred income to be recognizedin the profit and loss statement on a systematicand rational basis over the useful life of the assetare same in AS 12 and Ind AS - 20, the changewas not mandated by Ind AS - 20. Hence, theCompany changed the method in order to correctan error.

Since the assets related to which grants/consumercontribution received have been capitalized inthe books of accounts, the effect of such changeshould be worked out retrospectively andaccounted for in the opening balance of DeferredGovernment Grants, Subsidies and ConsumerContribution towards capital assets by 403.57crore as at 31st March 2017.

Disclosure of the above facts in Note no. 64

deferred grants to income is a change on accountof more experience and circumstances asobtained currently to reduce the mismatch and itdoes not and cannot obviate the mismatchentirely, which would still continue, albeit a lowerone. The change in the method is a change inaccounting estimate in compliance with Ind AS8 –Accounting Policies, Changes in AccountingEstimates and Errors, just akin to a change inthe method of depreciation is or would be. Asper requirements of the Ind AS, every method oraccounting estimate can change on account ofnew developments, circumstances, and moreexperience. The earlier method of recognizingdeferred income i.e. Reducing Balance Method(RBM) or Written Down Value Method (WDV)was selected and applied basis the facts andcircumstances as obtained at the time of suchselection and application, which was found to bein compliance with the Accounting Standards atthe time in all the audits by different auditors overa period of more than 10 years includingsupplementary audit by the Hon’ble office ofC&AG.

Having said the above, with reference to Hon’bleC&AG office’s communication for obtaining anindependent opinion, during FY 2019-20,GUVNL, the Holding Company, on behalf ofSubsidiary Companies has obtained anindependent opinion from eminent professionalCA Firm having partners some of whom havebeen past presidents of ICAI, as well as haveserved extensively on various ICAI Committeesincluding EAC. The Firm has also opined on the

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instead of giving accounting effect does notsuffice the purpose.

Despite being pointed out in previous years(2016-17, 2017-18 and 2018-19), no correctiveaction has been taken by the Company during2018-19.

subject matter which has been shared with C&AGOffice. The independent opinion obtainedbuttresses the Company’s (and the Group’s)position that the change in the method is not acorrection of error and hence the Company’saccounting treatment is correct. The Companyhas also given adequate disclosure in this regardunder Note No.64 of the Audited AnnualAccounts of FY 2019-20.

Thus, given the Company’s position, that theaccounting and treatment is found to be correctbacked by sufficient disclosures hence no furthercorrective action is required to be taken.

Comment on Disclosure

Notes to the Financial Statements

The above does not disclose the claim of111.68 crore being differential cost of land

demanded by Surat Municipal Commissioner(SMC). The company had paid initial cost of

30.64 crore as per Jantri rate for land at fivesites under SMC and constructed substations,The Land Disposal committee in final valuationhad finalized the cost of land at 142.32 crore.Accordingly, SMC, raised claim of 111.68 croreon account of differential cost of land. Thecompany has taken up the matter to reduce therate with various Government authorities but nodirective has been received till date. The Notesto the Financial Statements are deficient to theextent of non-disclosure of the above materialfact.

B. In this regard, it is to mention that for allotmentof land for substations, following process andprocedures are undertaken;

1. Application to the Office of collector forallotment of land.

2.Verif icat ion of site for substation anddocuments by collector office.

3. Issuance of demand notice for initial payment(Jantri Rate) of Land by collector office toGETCO.

4. Approval of initial land cost at GETCOs end atthe Jantri rate.

5. Payment of land cost by GETCO at Jantri Rate.

6. Possession of the Land by GETCO for buildingsubstations.

It is to mention that after the possession of the

75


land, GETCO starts the work for building of thesubstations. Generally, it takes 2-3 years forfinalizing the allotted land value by District/Stateland valuation committee and till such timesubstations in normal course are completed.Further there are cases where the valuation ofthe land as determined by District/State landvaluation committee is not in line with the budget/expectation of GETCO. In such cases, thecompany has to represent to Higher Officesincluding Government of Gujarat (GoG) forreconsidering the value of the allotted land. Dueto this uncertainty in the land valuation andconsiderable time involved in the processincluding GETCOs representation to GoG forreconsidering the land valuation, GETCO has toaccount for land as and when the payment ismade to the beneficiary or approval by the Boardof Directors to pay the differential amount (Valuedetermined by Land Valuation Committee lessJantri Value paid), whichever is earlier.

Accordingly, in the present case, as themanagement has not approved land cost andasked GETCO to take this at Govt. level forconsideration, GETCO has not made anyprovision of liability.

Further, Hon’ble GERC while approving the Tariffconsiders expenditure of GETCO on paymentbasis, any notional or provisional entry may notbe considered by GERC in approving the tariffand will lead to a mismatch between the Landcost shown in the books of accounts and Landcost approved by GERC. And in case, where

76


Land cost is approved by GERC on Provisionalbasis, there will be increase in transmission tariffwithout actual expenditure incurred by GETCOin that respective financial year.

We take into cognizance the auditors observationand from FY 2020-21 and onwards, GETCO willappropriately disclose its accounting policy forbooking/accounting differential cost of land(Value Determined by Valuation Committee lessValue paid by GETCO) as and when GETCOManagement finally accept and approves thesame for the differential payment sought by theGovernment authorities for the land provided toGETCO, which is after making all out efforts andrepresentations upto the Highest Governmentlevel for bringing the reduction in the land valueas it will attain finality thereafter.

However, for such pending representations/attempts of GETCO on acceptance and approvalof differential land value so demanded, GETCOwill disclose all such pending demands ofGovernment Authorities as Contingent Liabilityfrom FY 2020-21 and onwards.

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Annexure 5(ii)

MADHYA GUJARAT VIJ COMPANY LIMITED

Management Reply to the comment of the Comptroller and Auditor General of India received from AGOffice, Ahmedabad under Section 143(6)(b) of the Companies Act, 2013 on the Accounts of the MadhyaGujarat Vij Company Limited, Vadodara for the year ended March 31st, 2020.

Comment of the Comptroller andAuditor General of India

Management Reply

A.Comments on Financial Position

1. Balance SheetSubsidies & Consumer Contribution(Note-17)- 1309.21 Crore

A reference is invited to note no 46 of the financialstatements which state that the Company haschanged the method of computing the grants/consumer contribution received against depreciableassets to be recognized in Statement of Profit andLoss from reducing balance method to the straightline method and consequently the rates at whichgrant is recognized in the Statement of Profit andLoss.

The Company has determined that the change torecognize grants in proportion of the depreciationexpenses is a change in accounting estimates andis to be applied prospectively. As per AS-12, Grantsrelated to depreciable assets are treated as deferredincome which is recognised in the Profit and LossStatement on a systematic and rational basis overthe useful life of the asset. As per paragraph 17 ofInd AS 20, grants related to depreciable assets areusually recognised in Profit or Loss over the periods

C&AG’s comment is on the financial position i.e.Balance Sheet, particularly on Subsidies andConsumer Contributions with reference to Note no.46 which state that the Company has changed themethod of computing the grants/consumercontribution received against depreciable assets tobe recognized in Statement of Profit and Loss fromreducing balance method to the straight line methodand consequently the rates at which grant isrecognized in the Statement of Profit and Loss. Itmay be noted that this is a repeat commentpertaining to Financial Statements of the Companyfor FY 2016-17, FY 2017-18 and FY 2018-19.

At the outset, it may be noted that, the subjectmatter of the comment has no impact on theprofitability of the Company for FY 2019-20. Also,the subject matter of the comment would not haveany impact on the profitability of the Company inthe future financial years also.

As informed and explained in the earlier years, thechange in the method of recognition of deferredgrants to income is a change on account of moreexperience and circumstances as obtainedcurrently to reduce the mismatch and it does not

78


and in the proportions in which depreciation expenseon those assets is recognized.

The above change in method was made by theCompany as there was a mismatch of the grantsrecognized in the Statement of Profit and Lossversus the related depreciation expense. Thus, theCompany has changed the method of recognitionof deferred income in order to align the recognitionof deferred income with the related depreciationexpense. As the provision for treatment of deferredincome to be recognized in the Profit and LossStatement on a systematic and rational basis overthe useful life of the asset are same in AS-12 andInd AS 20, the change was not mandated by Ind AS20. Hence, the Company changed the method inorder to correct an error.

Since the depreciable assets related to which grants/consumer contribution received have beencapitalized in the books of accounts, the effect ofsuch change should be worked out retrospectivelyand accounted for in the opening balance ofDeferred Government Grants, Subsidies andConsumer contribution.

This has resulted in overstatement of retainedearnings and understatement of balances ofGovernment Grants, Subsidies and Consumercontribution towards Capital Assets by 207.59Crore as at 31st March 2017.

Disclosure of the above facts in note No.46 insteadof giving accounting effect does not suffice thepurpose.

Despite being pointed out in the years 2016-17,2017-18 and 2018-19, no corrective action has beentaken by the company during F.Y.2019-20.

and cannot obviate the mismatch entirely. We wouldlike to reiterate that a mismatch would still continue,albeit a lower one. The change in the method is achange in accounting estimate in compliance withInd AS 8 –Accounting Policies, Changes inAccounting Estimates and Errors, just akin to achange in the method of depreciation is or wouldbe. Per requirements of the Ind AS, every methodor accounting estimate can change on account ofnew developments, circumstances, and moreexperience. The earlier method of recognizingdeferred income i.e., Reducing Balance Method(RBM) or Written Down Value Method (WDV) wasselected and applied basis the facts andcircumstances as obtained at the time of suchselection and application, which was found to be incompliance with the Accounting Standards at thetime in all the audits by different auditors over aperiod of more than 10 years including thesupplementary audit by the Hon’ble office of C&AG.

Having said the above, with reference to Hon’bleC&AG office’s communication for obtaining anindependent opinion, during the FY 2019-2020;GUVNL, the Holding Company, on behalf ofsubsidiary companies has obtained an independentopinion from eminent professional CA Firm havingpartners some of whom have been past presidentsof ICAI, as well as have served extensively onvarious ICAI Committees including EAC. The Firmhas also opined on the subject matter which hasbeen shared with C&AG Office. The independentopinion obtained buttresses the Company’s (and theGroup’s) position that the change in the method isnot a correction of error and hence the Company’s

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accounting treatment is correct. The Company hasalso given adequate disclosure in this regard underNote no.46 of the Audited Annual Accounts F.Y2019-20.

Thus, given the Company’s position and treatmentis found to be correct and hence no furthercorrective action required to be taken.

2. Balance SheetLiabilitiesOther Non-Current Liabilities(Note-22) 92.73 Crore

The above includes 17.69 crore on account of‘Miscellaneous deposit from consumers’ was beingbalance amount refundable to the consumer afteradjusting from deposit for temporary connection. Asit is to be refunded to the consumer on demand,the same should be classified as Other CurrentFinancial Liabilities instead of Other Non-CurrentLiabilities.

Thus, incorrect classif icat ion resulted inoverstatement of “Other Non-Current Liabilities” andunderstatement of “Other Current FinancialLiabilities” by 17.69 crore.

MGVCL would like to state that the miscellaneousdeposit from consumer generally arises due to ex-party finalization of temporary connections i.e.arrears and other charges are being adjusted /recovered from consumer deposit.Initially such deposit received from temporaryconsumers is grouped under “Other CurrentFinancial Liabilities”.Whereas, while making finalization of temporaryconnections; if the party has abstained fromappearance or not traceable as per our records andthe refund of the said amount has not been claimed;then after, such amount payable on finalization istransferred to separate Account and classified under“Other Non-Current Liabilities” for better control andsegregation of liability payable to consumers.However, the Audit observation has been noted andcorrective action will be taken from next financialyears.

For & On behalf of the Comptroller and AuditorGeneral of India


Principal Accountant General (Audit-II), GujaratPlace: AhmedabadDated: 27.11.2020

For & On behalf of Madhya Gujarat Vij CompanyLimited (MGVCL)


Chairperson (DIN:03584560)Place: VadodaraDated: 19.12.2020

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Annexure 5(iii)

DAKSHIN GUJARAT VIJ COMPANY LIMITED

Management Reply to the comment of the Comptroller and Auditor General of India received from AGOffice, Ahmedabad under Section 143(6)(b) of the Companies Act, 2013 on the Accounts of the DakshinGujarat Vij Company Limited, Vadodara for the year ended March 31st, 2020.

(A) Comments on Financial Position

Comments of the Comptroller and AuditorGeneral of India

Management Reply

1. Balance Sheet

Equity and Liabilities

Deferred Government Grants, Subsidies &Contributions (Note No. 19) 1730.83 crore

A reference is invited to the Comments of theComptroller and Auditor General (C&AG) of Indiaunder section 143(6) of the Companies Act, 2013on the Financial Statements of the Company for theyear ended 31st March 2017, 31st March 2018, 31st

March 2019.

With effect from 01st April 2016, the Company haschanged the method of computing the grants/consumer contribution received against depreciableassets to be recognized in Statement of Profit andLoss from reducing balance method to the straightline method and consequently the rates at whichgrant is recognized in the Statement of Profit andLoss. The Company has determined that the changeto recognize grants in proportion of the depreciationexpenses is a change in accounting estimates andis to be applied prospectively.

C&AG’s comment is on the financial position i.e.Balance Sheet, particularly on Subsidies andConsumer Contributions with reference to Note no.19 which state that the Company has changed themethod of computing the grants / consumercontribution received against depreciable assets tobe recognized in Statement of Profit and Loss fromreducing balance method to the straight line methodand consequently the rates at which grant isrecognized in the Statement of Profit and Loss. Itmay be noted that this is a repeat commentpertaining to Financial Statements of the Companyfor FY 2016-17, FY 2017-18 and FY 2018-19.

At the outset, it may be noted that, the subjectmatter of the comment has no impact on theprofitability of the Company for FY 2019-20. Also,the subject matter of the comment would not haveany impact on the profitability of the Company inthe future financial years also.

As informed and explained in the earlier years, thechange in the method of recognition of deferredgrants to income is a change on account of more

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As per Accounting Standard-12, Grants related todepreciable assets are treated as deferred incomewhich is recognised in the Profit and Loss Statementon a systematic and rational basis over the usefullife of the asset. Indian Accounting Standard-20 alsostate that, grants related to depreciable assets areusually recognised in Profit or Loss over the periodsand in the proportions in which depreciation expenseon those assets is recognised.

The above change in method was made by theCompany as there was a mismatch of the grantsrecognized in the Statement of Profit and Lossversus the related depreciation expense. Thus, theCompany has changed the method of recognitionof deferred income in order to align the recognitionof deferred income with the related depreciationexpense. As the provision for treatment of deferredincome to be recognised in the Profit and LossStatement on a systematic and rational basis overthe useful life of the asset are same in AS-12 andInd AS 20, the change was not mandated by Ind AS20. Hence, the Company changed the method inorder to correct an error.

Since the depreciable assets related to which grants/consumer contribution received have beencapitalized in the books of accounts, the effect ofsuch change should have been worked outretrospectively and accounted for in the openingbalance of Deferred Government Grants, Subsidiesand Consumer contribution.

This has resulted in overstatement of retainedearnings and understatement of balances ofDeferred Government Grants, Subsidies and

experience and circumstances as obtained currentlyto reduce the mismatch and it does not and cannotobviate the mismatch entirely, which would stillcontinue, albeit a lower one. The change in themethod is a change in accounting estimate incompliance with Ind AS 8 –Accounting Policies,Changes in Accounting Estimates and Errors, justakin to a change in the method of depreciation is orwould be. Per requirements of the Ind AS, everymethod or accounting estimate can change onaccount of new developments, circumstances, andmore experience. The earlier method of recognizingdeferred income i.e., Reducing Balance Method(RBM) or Written Down Value Method (WDV) wasselected and applied basis the facts andcircumstances as obtained at the time of suchselection and application, which was found to be incompliance with the Accounting Standards at thetime in all the audits by different auditors over aperiod of more than 10 years including thesupplementary audit by the Honorable C&AG office.

Having said the above, with reference to Hon’bleC&AG office’s communication for obtaining anindependent opinion, during FY 2019-20, GUVNL,the Holding Company, on behalf of SubsidiaryCompanies has obtained an independent opinionfrom eminent professional CA Firm having partnerssome of whom have been past presidents of ICAI,as well as have served extensively on various ICAICommittees including EAC. The Firm has alsoopined on the subject matter which has been sharedwith C&AG Office. The independent opinionobtained buttresses the Company’s (and theGroup’s) position that the change in the method is

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Consumer Contribution towards Capital Assets by293.44 crore as at 31st March 2017.

Disclosure of the above facts in Note no. 19.1instead of giving accounting effect does notsuffice the purpose.

Despite being pointed out in the year 2016-17 and2017-18, no corrective action has been taken by theCompany during 2018-19.

not a correction of error and hence the Company’saccounting treatment is correct. The Company hasalso given adequate disclosure in this regard underNote No.19.1 of the Audited Annual Accounts ofFY 2019-20.



Sd/-(H.K. Dharmadarshi)

Principal Accountant General (Audit-II), Gujarat

Place: AhmedabadDated: 27.11.2020

For & On behalf of Dakshin Gujarat Vij CompanyLimited,


Chairperson (DIN:03584560)


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Annexure 5(iv)

PASCHIM GUJARAT VIJ COMPANY LIMITED

Managements Reply to the comment of the Comptroller and Auditor General of India under section 143(6)(b)of the Companies Act, 2013 on the Financial Statements of the Paschim Gujarat Vij Company Limited,Rajkot for the year ended on 31st March, 2020.

Sr.No Comment Management Reply

1. C&AG’s comment is on the financial position i.e.Balance Sheet, particularly on Subsidies andConsumer Contributions with reference to NoteNo. 48 which states that the Company haschanged the method of computing the grants/consumer contribution received againstdepreciable assets to be recognized in Statementof Profit and Loss from Reducing BalanceMethod to the Straight Line Method andconsequently the rates at which grant isrecognized in the Statement of Profit and Loss.It may be noted that this is a repeat commentpertaining to Financial Statements of theCompany for FY 2016-17, FY 2017-18 and FY2018-19.

At the outset, it may be noted that, the subjectmatter of the comment has no impact on theprofitability of the Company for FY 2019-20. Also,the subject matter of the comment would nothave any impact on the profitability of theCompany in the future financial years also.

As informed and explained in the earlier years,the change in the method of recognition of

Balance Sheet :

Deferred Government Grants, Subsidies &Consumer Contribution (Note No. 18)

2537.71 crore

A reference is invited to Note no. 48 of thefinancial statements, which state that with effectfrom April,2016 the Company has changed themethod of computing the grants/consumercontribution received against depreciable assetsto be recognized in statement of profit and lossfrom reducing balance method to the straight linemethod and consequently the rates at whichgrant is recognized in the statement of profit andloss.

The Company determined that the change torecognize grants in proportion of the depreciationexpenses is a change in accounting estimatesand is to be applied prospectively."

As per Accounting Standard (AS) - 12, Grantsrelated to depreciable assets are treated asdeferred income which is recognized in the profitand loss statement on a systematic and rational

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basis over the useful life of the asset. IndianAccounting Standard (Ind AS)- 20 also state thatgrants related to depreciable assets are usuallyrecognized in profit or loss over the periods andin the proportions in which depreciation expenseson those assets is recognized.

The above change in method was made by theCompany as there was a mismatch of the grantsrecognized in the Statement of Profit and Lossversus the related depreciation expenses. Thus,the Company has changed the method ofrecognized of deferred income in order to alignthe recognition of deferred income with therelated depreciation expenses. As the provisionfor treatment of deferred income to be recognizedin the statement of profit and loss on a systematicand rational basis over the useful life of the assetis same in AS. 12 and Ind AS - 20, the changewas not mandated by Ind AS - 20. Hence, theCompany changed the method in order to correctan error.

Since the depreciable assets related to whichgrants/consumer contribution received havebeen capitalized in the books of accounts, theeffect of such change should have been workedout retrospectively and accounted for in theopening balance of Deferred GovernmentGrants, Subsidies and Consumer Contribution.

This has resulted in overstatement of retainedearnings and understatement of balances ofDeferred Government Grants, Subsidies andConsumer Contribution towards capital assetsby 356.20 crore as at 31st March 2017.

deferred grants to income is a change on accountof more experience and circumstances asobtained currently to reduce the mismatch and itdoes not and cannot obviate the mismatchentirely, which would still continue, albeit a lowerone. The change in the method is a change inaccounting estimate in compliance with Ind AS8 –Accounting Policies, Changes in AccountingEstimates and Errors, just akin to a change inthe method of depreciation is or would be. AsPer requirements of the Ind AS, every methodor accounting estimate can change on accountof new developments, circumstances, and moreexperience. The earlier method of recognizingdeferred income i.e. Reducing Balance Method(RBM) or Written Down Value Method (WDV)was selected and applied basis the facts andcircumstances as obtained at the time of suchselection and application, which was found to bein compliance with the Accounting Standards atthe time in all the audits by different auditors overa period of more than 10 years includingsupplementary audit by the Hon’ble office ofC&AG.

Having said the above, with reference to Hon’bleC&AG office’s communication for obtaining anindependent opinion, during FY 2019-20,GUVNL, the Holding Company, on behalf ofSubsidiary Companies has obtained anindependent opinion from eminent professionalCA Firm having partners some of whom havebeen past presidents of ICAI, as well as haveserved extensively on various ICAI Committeesincluding EAC. The Firm has also opined on the

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subject matter which has been shared with C&AGOffice. The independent opinion obtainedbuttresses the Company’s (and the Group’s)position that the change in the method is not acorrection of error and hence the Company’saccounting treatment is correct. The Companyhas also given adequate disclosure in this regardunder Note No.48 of the Audited AnnualAccounts of FY 2019-20.


Disclosure of the above facts in the Noteno.48 instead of giving accounting effectdoes not suffice the purpose.

Despite being pointed out in 2016-17, 2017-18and 2018-19, no corrective action has been takenby the Company.

2. Balance Sheet :Current LiabilitiesOther Current Liabilities (Note No. 26)

67,175.68 lakhs

The above does not include 257.8l Lakh beingamount payable to M/s Gokul Agro ResourcesLimited on account of decision (January 2020)of GERC to revise the bills and refund the excessmonthly energy charges recovered during June2015 to December 2016.

This resulted in understatement of Other CurrentLiabilities by 257.81 Lakh and overstatementof Other Equity (Retained Earnings) to the sameextent.

Present practice of the company is that theadjustments given in the consumer account areaccounted in the respective month of adjustmentand same practice is being followed by PGVCLsince past so many years. Also the said practiceis being uniformly followed across all DISCOMs.

It is pertinent here to note that there is widespread network of PGVCL spread among 246sub-division offices and 45 Division offices. So,it is difficult to consider adjustment of suchtransactions in books of accounts of respectivefinancial year itself.

However, the valuable suggestion of CAG isnoted and we hereby assure that in future theeffect of major such transactions will be given inthe financial statement of respective year.

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Annexure 6

FORM NO. MR - 3SECRETARIAL AUDIT REPORT

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

(Appointment and Remuneration Personnel) Rules, 2014]

To,The MembersGUJARAT URJA VIKAS NIGAM LIMITEDCIN- U40109GJ2004SGC045195Sardar Patel Vidyut Bhavan,Race course,Vadodara- 390007, Gujarat, India.

We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and theadherence to good corporate practices by GUJARAT URJA VIKAS NIGAM LIMITED(CIN:U40109GJ2004SGC045195) (hereinafter called “the Company”). Secretarial Audit was conductedin a manner that provided us a reasonable basis for evaluating the corporate conducts/statutory compliancesand expressing our opinion thereon.

Based on our verification of the GUJARAT URJA VIKAS NIGAM LIMITED books, papers, minute books,forms and returns filed and other records maintained by the Company and also the information provided bythe Company, its officers, agents and authorized representatives during the conduct of secretarial auditand considering the relaxations granted by the Ministry of Corporate Affairs (MCA) warranted due to thespread of the COVID – 19 pandemic, We hereby report that in our opinion, the Company has, during theaudit period covering the financial year ended on 31st March, 2020 complied with the statutory provisionslisted hereunder and also that the Company has proper Board-processes and compliance-mechanism inplace 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 maintainedby the Company for the financial year ended on 31st March, 2020 according to the provisions of ;

(i) The Companies Act, 2013 (“the Act”) and the rules made thereunder (including any statutorymodification(s) or re-enactment(s) thereof, for the time being in force);

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(ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder (includingany statutory modification(s) or re-enactment(s) thereof, for the time being in force); - Not applicableduring the audit period under review.

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder (including anystatutory modification(s) or re-enactment(s) thereof, for the time being in force); - Not applicableduring the audit period under review.

(iv) Foreign Exchange Management Act, 1999 (FEMA) and the Rules and Regulations made thereunderto the extent of Foreign Direct Investment (FDI), Overseas Direct Investment (ODI) and ExternalCommercial Borrowings (ECB)(including any statutory modification(s) or re-enactment(s) thereof, forthe time being in force); - Not applicable during the audit period under review.

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board ofIndia Act, 1992 (‘SEBI Act’)(including any statutory modification(s) or re-enactment(s) thereof, for thetime being in force):

(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)Regulations, 2011- Not applicable during the audit period under review;

(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015-Not applicable during the audit period under review;

(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)Regulations, 2018- Not applicable during the audit period under review;

(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations,2014- Not applicable to the Company during the audit period under review;

(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,2008- Not applicable to the Company during the audit period under review;

(f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)Regulations, 1993 regarding the Com panies Act and dealing with client- Not applicable to theCompany during the audit period under review;

(g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009-Not applicable to the Company during the audit period under review;

(h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018- Notapplicable to the Company during the audit period under review; and

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(vi) Other applicable laws: Based on the information provided and the representation made by theCompany and its officers and also on the review of the compliance reports taken on record by theBoard of Directors of the Company, in our opinion, adequate systems and processes exist in theCompany to monitor and ensure compliances under other applicable Acts including Electricity Act,2003, Gujarat Electricity Industry (Recognition and Regulation) Act, 2003 and Gujarat Electricity DutyAct, 1958.

We have also examined compliance with the applicable clauses of the following:

(i) Secretarial Standards issued by The Institute of Company Secretaries of India.

(ii) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015- Not applicableto the Company during the audit period under review.

During the year under review the Company has complied with the provisions of the Act, Rules, Regulations,Guidelines, Standards, etc. mentioned above.Further,for short spending of amount on Corporate SocialResponsibility activities as per Section 135 of the Act, the Company will ensure to specify the reasons forshort spending the amount in its Board Report pursuant to the provisions of Section 135 of the Act and theCompanies (Corporate Social Responsibility Policy) Rules, 2014.

We further report that:

The company is a Government Company under the provisions of the Act and is a holding Company of sixsubsidiary companies.

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The Changes in the composition of the Board of Directorsthat took place during the period under review were carried out in compliance with the provisions of the Actand as per the directives issued by the Government of Gujarat from time to time.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes onagenda were sent at least seven days in advance, and a system exists for seeking and obtaining furtherinformation and clarifications on the agenda items before the meeting and for meaningful participation atthe meeting.

Decisions at the meetings of the Board of Directors of the Company were carried through on the basis ofunanimously and/or requisite majority. There were no dissenting views by any member of the Board ofDirectors during the period under review.

We further report that there are adequate systems and processes in the Company commensurate with

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the size and operations of the Company to monitor and ensure compliance with applicable laws, rules,regulations and guidelines.

We further report that during the audit period, following major events have happened which are deemedto have major bearing on the company’s affairs in pursuance of the above laws, rules, regulations, guidelines,standards etc.

1. The Company during the financial year 2019-2020, has allotted 2,57,55,89,900 (Two Hundred FiftySeven Crore Fifty Five Lakh Eighty Nine Thousand Nine Hundred) Equity shares of 10 each fullypaid up on right basis on following dates.

Sr. No Type of Securities Date of Allotment No of Securities Amount per share

1. Equity Shares 16/04/2019 39,76,09,700 10

2. Equity Shares 29/07/2019 93,08,40,000 10

3. Equity Shares 26/08/2019 5,00,00,000 10

4. Equity Shares 09/12/2019 1,08,84,73,600 10

5. Equity Shares 17/01/2020 10,86,66,600 10


Signature:-______Sd/-________________Name of PCS : Niraj TrivediPracticing Company SecretaryC.P. No. : 3123P.R No. : 1014/2020UDIN : F003844B001371430

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This report is to be read with our letter of same date which is annexed as “Annexure A” and forms anintegral part of this report.

Annexure ATo,The MembersGUJARAT URJA VIKAS NIGAM LIMITEDCIN- U40109GJ2004SGC045195Sardar Patel Vidyut Bhavan,Race Corse, Vadodara-390007Gujarat, India.

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the Company. Ourresponsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonableassurance about the correctness of the contents of the secretarial records. The verification was doneon test basis to ensure that correct facts are reflected in secretarial records. We believe that theprocesses and practices we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accountsof the Company.

4. Wherever required, we have obtained the Management representation about the compliance of laws,rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standardsis the responsibility of management. Our examination was limited to the verification of procedures ontest basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the Company nor ofthe efficacy or effectiveness with which the management has conducted the affairs of the Company.

Place: Vadodara

Date: 02-12-2020

Signature:-______Sd/-________________Name of PCS : Niraj TrivediPracticing Company SecretaryC.P. No. : 3123P.R No. : 1014/2020UDIN : F003844B001371430

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ADDENDUM TO BOARDS’ REPORT FOR F.Y.2019-20

To,The Members ofGUJARAT URJA VIKAS NIGAM LIMITED.

CIRCULATION OF COMMENTS OF COMPTROLLER AND AUDITOR GENERAL OF INDIA (C&AG) ONTHE CONSOLIDATED FINANCIAL STATEMENTS OF THE COMPANY FOR FY 2019-20 ALONGWITHMANAGEMENT REPLIES TO THE COMMENTS.

As stated in the Boards’ Report dated 24-12-2020 circulated to the members and laid before the AnnualGeneral Meeting held on 30-12-2020, Comments of C&AG on Consolidated Financial Statements wereawaited as on the date of the aforesaid Boards’ Report.

The Comments of C&AG on Consolidated Financial Statements comment(s) for the FY 2019-20 are receivedon 13-01-2021 and the said comments along with management replies to each comment are attachedherewith.



Sd/-SunainaTomar, IAS


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C&AG’s Comments Management Reply

Management Reply to the Comments of the Comptroller and Auditor General of India received from AGOffice, Ahmedabad under Section 143(6)(b) of the Companies Act, 2013 on the Consolidated FinancialStatements of Gujarat Urja Vikas Nigam Limited, Vadodara for the year ended 31st March, 2020.

A. Comment on Financial Position

1. Balance SheetEquity and LiabilitiesDeferred Government Grants, Subsidies &Contributions (Note No. 20) - 9051.02 crore

A reference is invited to Note no. 64 of the FinancialStatements, which stated that with effect from 01st

April 2016, the Group Companies have changed themethod of computing the grants/consumercontribution received against depreciable assets tobe recognized in Statement of Profit and Loss fromreducing balance method to the straight line methodand consequently the rates at which grant isrecognized in the Statement of Profit and Loss.

The Company has determined that the change torecognize grants in proportion of the depreciationexpenses is a change in accounting estimates andis to be applied prospectively.

As per Accounting Standard-12, Grants related todepreciable assets are treated as deferred incomewhich is recognised in the Profit and Loss Statementon a systematic and rational basis over the usefullife of the asset. Indian Accounting Standard-20 alsostate that, grants related to depreciable assets areusually recognised in Profit or Loss over the periodsand in the proportions in which depreciation expenseon those assets is recognised.

C&AG’s comment is on the financial position i.e.Balance Sheet, particularly on Subsidies andConsumer Contributions with reference to Note No.64 which states that the Company has changedthe method of computing the grants/ consumercontribution received against depreciable assets tobe recognized in Statement of Profit and Loss fromReducing Balance Method to the Straight LineMethod and consequently the rates at which grantis recognized in the Statement of Profit and Loss.It may be noted that this is a repeat commentpertaining to Standalone Financial Statements ofDGVCL, MGVCL, PGVCL & GETCO for FY 2016-17, FY 2017-18 and FY 2018-19.

At the outset, it may be noted that, the subjectmatter of the comment has no impact on theprofitability for FY 2019-20. Also, the subject matterof the comment would not have any impact on theprofitability in the future financial years also.

As informed and explained in the earlier years, thechange in the method of recognition of deferredgrants to income is a change on account of moreexperience and circumstances as obtainedcurrently to reduce the mismatch and it does notand cannot obviate the mismatch entirely, whichwould still continue, albeit a lower one. The changein the method is a change in accounting estimate

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The above change in method was made by theGroup Companies as there was a mismatch of thegrants recognized in the Statement of Profit and Lossversus the related depreciation expense. Thus, theCompany has changed the method of recognitionof deferred income in order to align the recognitionof deferred income with the related depreciationexpense. As the provision for treatment of deferredincome to be recognised in the Profit and LossStatement on a systematic and rational basis overthe useful life of the asset are same in AS 12 andInd AS 20, the change was not mandated by Ind AS20. Hence, the Company changed the method inorder to correct an error.

Since the depreciable assets related to which grants/consumer contribution received have beencapitalized in the books of accounts, the effect ofsuch change should have been worked outretrospectively and accounted for in the openingbalance of Deferred Government Grants, Subsidiesand Consumer contribution.

This has resulted in overstatement of retainedearnings and understatement of balances ofDeferred Government Grants, Subsidies andConsumer Contribution towards Capital Assets by

1450.15 crore as at 31st March 2017.

Disclosure of the above facts in Note no. 64instead of giving accounting effect does notsuffice the purpose.

Despite being pointed out in the year 2016-17, 2017-18 and 2018-19, no corrective action has been takenby the Company during 2019-20.

in compliance with Ind AS 8 –Accounting Policies,Changes in Accounting Estimates and Errors, justakin to a change in the method of depreciation is orwould be. Per requirements of the Ind AS, everymethod or accounting estimate can change onaccount of new developments, circumstances, andmore experience. The earlier method of recognizingdeferred income i.e. Reducing Balance Method(RBM) or Written Down Value Method (WDV) wasselected and applied basis the facts andcircumstances as obtained at the time of suchselection and application, which was found to be incompliance with the Accounting Standards at thetime in all the audits by different auditors over aperiod of more than 10 years includingsupplementary audit by the Hon’ble office of C&AG.

Having said the above, with reference to Hon’bleC&AG office’s communication for obtaining anindependent opinion, during FY 2019-20, GUVNL,the Holding Company, on behalf of SubsidiaryCompanies has obtained an independent opinionfrom eminent professional CA Firm having partnerssome of whom have been past presidents of ICAI,as well as have served extensively on various ICAICommittees including EAC.The Firm has alsoopined on the subject matter which has been sharedwith C&AG Office. The independent opinionobtained buttresses the Group’s position that thechange in the method is not a correction of errorand hence the Company’s accounting treatment iscorrect. The Group has also given adequatedisclosure in this regard under Note No.64 of theCFS of FY 2019-20.

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Thus, given the Group’s position, that theaccounting treatment is found to be correct asper the opinion of the independent CharteredAccountant Firm, backed by sufficientdisclosures, no further corrective action isrequired to be taken.

2. Balance SheetEquity and LiabilitiesLiabilitiesCurrent LiabilitiesOther CurrentFinancial Liabilities (Note No. 29)Deposits and retentions from Suppliers/Contractors - 3389.28 crore

The above does not include 182.57 crore withheldby GUVNL from monthly power purchase bills of sixseparate IL&FS Group wind power Companies fromNovember 2018 to 14 October 2019 with whom theCompany is having Power Purchase Agreements(PPA). The amount has been transferred to its CPFTrust to set-off loss to its CPF Trust due to non-receipt of interest and principal amount againstinvestment made in three IL&FS group companiesthat defaulted on interest payments due on 30th

September 2018 and onwards.

As the matter is sub-judice in NCLT, the set off ofreceivable and payable is not admissible. Thisresulted in understatement of Deposits & Retentionsfrom suppliers (Other Financial Liability) by 182.57crore and consequent understatement ofRecoverable from CPF Trust (Other FinancialAssets).

The National Company Law Tribunal (NCLT) hastreated IL&FS & its 348 Group Companies as acomposite entity for the purpose of Resolution Planto be drawn by the newly constituted Board of IL&FSat the behest of Govt. of India. Therefore, GUVNLhas withheld the dues of 6 Wind GeneratingCompanies of the same IL&FS Group. IL&FSstarted defaulting on the interest payments to thePF Trust and was referred to NCLT. Logically,GUVNL being the parent Company did not releasethe dues to the Wind Generating Companies (whobelongs to the same group) because its own CPFTrust’s investments are at stake and 100% recoveryis doubtful at this point of time.

GUVNL firmly believes that IL&FS Group is requiredto “equitably set-off” the money due to GUVNL’sCPF Trust from its 3 Group Companies (viz. IL&FSTransportation Network Limited, InfrastructureLeasing & Financial Services Limited and IL&FSFinancial Services Limited)from any money due toany of the Companies of IL&FS Group from GUVNL.

Therefore, GUVNL is legally entitled to withhold anypayment from the payment of electricity generatedand supplied by IL&FS Wind GeneratingCompanies, pending final Resolution at NCLT. Itwould be unfair, unjust, un-equitable and illegal if

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GUVNL is required to pay the claims of the WindGenerating Companies, while IL&FS GroupCompanies are not discharging their obligations topay to GUVNL’s PF Trust - the amount due towardsinvestment made as financial creditors.

IL&FS Wind Generating Companies approachedHon’ble GERC, but without any success. At thesame time, they also approached National CompanyLaw Appellate Tribunal (NCLAT), New Delhi. Duringhearing of this matter, Hon’ble NCLAT has rejected/ dismissed their claims on the withheld dues andallowed them to withdraw their applications vide itsOrder dt. 23.10.2019.

GUVNL withheld the principal and its interest duestotaling to 18256.66 lakhs from IL&FS WindGenerating Companies and thereafter subsequentlyhad transferred the same to CPF Trust. TheResolution proceedings are presently going on inNCLT. After all, GUVNL had retained this amounton behalf of the CPF Trust towards recovery of theinvestments. Hence, it was a logical decision andconclusion to transfer the same to the Trust, pendingfinal Resolution plan of NCLT.

Therefore, there is no understatement ofDeposits & Retentions from suppliers (otherFinancial Liability) by 182.57 crores andconsequently no understatement ofrecoverables from CPF Trust (Other FinancialAssets).

B. Comment on Disclosure

3. Notes to the Financial Statements

The above does not disclosed the claim of 111.68

This comment is on non-disclosure of claim raisedby Surat Municipal Commissioner on GETCOtowards differential cost of land.

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crore being differential cost of land demanded bySurat Municipal Commissioner (SMC). Thecompany had paid initial cost of 30.64 crore asper Jantri rate for land at five sites under SMC andconstructed substations. The Land Disposalcommittee in final valuation had finalized the cost at

142.32 crore. Accordingly SMC, raised claim of111.68 crore on account of differential cost of land.

The company has taken up the matter to reducethe rate with various Government authorities but nodirective has been received till date. The Notes tothe Financial Statements are deficient to the extentof non-disclosure of the above material fact.

For allotment of land for substations, followingprocess and procedures are usually undertaken byGETCO:

1. Application to the Office of Collector for allotmentof land.

2.Verification of site for Substation and documentsby Collector’soffice.

3.Issuance of Demand Notice for initial payment(Jantri Rate) of Land by Collector’soffice to GETCO.

4. Approval of initial land cost at GETCO’s end atthe Jantri rate.

5.Payment of land cost by GETCO at Jantri Rate.

6.Possession of land by GETCO for buildingSubstations.

After possession of land, GETCO starts the workfor building the substations. Generally, it takes 2-3years for finalizing the allotted land value by District/State Land Valuation Committee. Till such time, thesubstations in normal course are completed. Thereare cases where the valuation of the land asdetermined by District/State Land ValuationCommittee are not in line with the budget/expectation of GETCO. In such cases, GETCOrepresents to higher Offices including Governmentof Gujarat (GoG) for reconsidering the value ofallotted land. Due to this uncertainty in land valuationand considerable time involved in the process,GETCO accounts for land as and when the paymentis made to the beneficiary or as per approval by itsBoard to pay the differential amount (valuedetermined by Land Valuation Committee less JantriValue paid), whichever is earlier.

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Accordingly, in the present case, the managementhas not approved the land cost and has askedGETCO to take up this at Govt. level forconsideration. However, no directives have beenreceived by GETCO till date from Govt. of Gujarat.The accounting treatment is also in accordance withthe prevailing policies and accepted accountingpolicies. Therefore, no disclosures were made byGETCO.

The audit observations have been noted andsuitable disclosures would be made from thenext Financial Year onwards.

4. Notes to the Consolidated FinancialStatementsContingent Liabilities, Contingent Assets andCapital Commitments (Note No. 49)Joint VentureClaims against the Company not acknowledgedas Debt – 159.91 crore

Above includes 159.91crore being the ContingentLiability towards Claims against the GSECL (holding40 per cent share in M/s Maha Gujarat CollieriesLimited) by M/s AMPL regarding development ofCoal Block.

As per paragraph 4.1 of Significant AccountingPolicies inter-alia states that the ConsolidatedFinancial Statements have been prepared bycombining the financial statements of the Companyand its subsidiaries on a line-by-line basis by addingtogether the book values of the like items aftereliminating in full intra-group assets,liabilities, etc.

Subsidiary Company - GSECL has opted forexemption to the preparation of ConsolidatedFinancial Statements (CFS) of GSECL & its JointVenture M/s. Mahaguj Collieries Ltd. (MGCL) as perthe requirements of Section 129(3) of theCompanies Act, 2013.The relevant extract of Para1.1 of Significant Accounting Policies of GSECL’sStandalone Financial Statements in this respect isreproduced as under:

“The Company does not have any subsidiary orassociates. The Company has entered into a JointVenture (JV) operation with MAHAGENCO viz.Mahaguj Collieries Limited for development ofcaptive coal mining block in state Orissa. As perrequirements of Section 129(3) of the CompaniesAct, 2013, every company is required to prepareConsolidated Financial Statements (CFS) subjectto exemption granted under Rule 6 of the Companies(Accounts) Rules, 2014 vide Notification 742 (E)dated 27.07.2016. The Company is eligible for such

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As per the Financial Statements of GSECL for theyear ended 31st March 2020, the share of theCompany in Contingent Liabilities of MGCL(including interest) is 222.28 crore.

This has resulted in understatement of ContingentLiabilities by 62.37crore.

an exemption, considering that GUVNL, our holdingcompany and the shareholders, shall file CFS incompliance with applicable accounting standardsand they have no objection to this.

Hence these financial statements are standalonefinancial statements and do not require anyconsolidated financial statements.”

Therefore, instead of GSECL consolidating their JVin their Accounts, GUVNL has done the same inaccordance with the aforestated provisions of theCompanies Act, 2013 and rules there under. At thetime of consolidation, GUVNL has complied withPara 4.1 and Para 4.5 of Significant AccountingPolicies of CFS. Accordingly,GUVNL in the CFShas considered the share of Contingent Liabilityas reflected in the audited Standalone FinancialStatements of MGCL. Further, the matter relatingto Contingent Liability has also been appropriatelydisclosed in Note 49 of CFS based on the disclosuremade by MGCL in its audited Standalone FinancialStatements.

MGCL has disclosed 399.79 crores as ContingentLiability in its Accounts. Therefore, GUVNL hastaken 40% of 399.79 crores i.e. 159.92 crores.Because GUVNL has consolidated GSECL’sJoint Venture with its own Standalone Accounts,Contingent Liability has been shown as per theAccounts of MGCL.

On the other hand, according to GSECL, theContingent Liability on this account is 222.28crores which includes interest liability of 62.37crores. But, the same is not recognised by MGCL

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as the Joint Venture’s interest liability. Therefore,when the Joint Venture’s Audited Accounts does notinclude interest element, the same has beenexcluded at the time of stating Contingent Liabilitiesin CFS. Further, all facts of this case have beendisclosed in detail in CFS in Note No. 53.

This liability stated in the Notes is of Contingentnature and does not have any impact on theprofitability or True & Fair view of theConsolidated Financial Statements.





For & On behalf of Gujarat Urja Vikas Nigam Limited

Sd/-(Sunaina Tomar, IAS)

Chairperson (DIN: 03435543)


101


STANDALONE FINANCIALSTATEMENTSF.Y. 2019-20

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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION143(6) (b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OFGUJARAT URJA VIKAS NIGAM LIMITED, VADODARA FOR THE YEAR ENDED 31st MARCH 2020.

The preparation of financial statements of the Gujarat Urja Vikas Nigam Limited, Vadodara for the yearended 31st March 2020 in accordance with the financial reporting framework prescribed under the CompaniesAct, 2013 is the responsibility of the Management of the Company. The Statutory Auditors appointed by theComptroller and Auditor General of India under Section 139(5) of the Act are responsible for expressingopinion on the financial statements under Section 143 of the Act based on independent audit in accordancewith the Standards on Auditing prescribed under Section 143(10) of the Act. This is stated to have beendone by them vide their Audit Report dated 29th September 2020.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a Supplementary audit ofthe financial statements of Gujarat Urja Vikas Nigam Limited, Vadodara for the year ended 31st March2020 under Section 143 (6) (a) of the Companies Act, 2013. This supplementary audit has been carried outindependently without access to the working papers of the Statutory Auditors and is limited primarily toinquiries of the Statutory Auditors and Company personnel and a selective examination of some of theaccounting records.

Based on my supplementary audit, I would like to highlight the following significant matters under Section143 (6) (b) of the Act which have come to my attention and which in my view are necessary for enabling abetter understanding of the financial statements and the related audit report:

A. Comments on Financial Position

1. Other Financial Liabilities (Note 23)Deposits and retentions from Suppliers / Contractors 1,21,145.52 lakh

The above does not include 182.57 core withheld by GUVNL from monthly power purchase bills of sixseparate IL&FS Group wind power Companies from November 2018 to 14 October 2019 with whom theCompany is having Power Purchase Agreements (PPA). The amount has been transferred to its CPF Trustto set-off loss to its CPF Trust due to non-receipt of interest and principal amount against investment madein three IL&FS group companies that defaulted on interest payments due on 30th September 2018 andonwards.

As the matter is sub-judice in NCLT, the set off of receivable and payable is not admissible. This resulted inunderstatement of Deposits & Retentions from suppliers (Other Financial Liability) by 182.57 core andconsequent understatement of Recoverable from CPF Trust (Other Financial Assets)

STANDALONE FINANCIAL STATEMENTS 2019-20

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2. Balance Sheet

Non-Current AssetsInvestments (Note 3) 259017.46 crore

The above includes 488.33 crore being share application money paid towards issue of equity share ontight basis to Gujarat State Electricity Corporation Limited (GSECL) as on 31st March, 2020.

As per the Guidance note on Division II Ind As Schedule III to the Companies Act 2013, any applicationmoney paid towards securities where security has not been allotted on the date of Balance Sheet shall bedisclosed as a separate line item under other non-current financial assets.

As the equity shares have not been allotted on the balance sheet date, inclusion of share applicationmoney in Investments resulted in understatement of Non-current Other Financial Assets and overstatementof Investments by 488.33 crore.

B. Comment on Disclosures

3. Notes to the Financial StatementsRelated Party Disclosures (Note 44B)Allocation of e-Urja Expenses 2026.98 lakh

A reference is invited to the above note no. 44 B, which discloses allocation of e-Urja expenses. TheCompany was allocating the “E-Urja expenses” to its group Companies based on number of registeredusers in the respective Company until FY 2017-18. However, the Company stopped this practice from2018-19 and stated recognizing the entire expenditure in its books of accounts. However, in FY 2019-20,the Company reverted to it’s previous policy which was followed until 2017-18.

The Company should have disclosed this change in accounting treatment in reference to previous years inits Notes to financial statements. The above notes are therefore deficient to that extent.

For and on behalf of theComptroller and Auditor General of India

Sd/-(H.K. Dharmadarshi)Principal Accountant General (Audit-II), Gujarat

Place: AhmedabadDate: 03-12-2020


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INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF GUJARAT URJA VIKAS NIGAM LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of GUJARAT URJA VIKASNIGAMLIMITED, which comprise the Balance Sheet as at 31st March, 2020, the Statement of Profit andLoss including the statement of Other Comprehensive Income, Statement of Changes in Equity, andStatement of Cash Flows for the year then ended, and Notes to the Financial Statements, including asummary of the significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidstandalone financial statements give the information required by the Companies Act, 2013, as amended(“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India, of the state of affairs of the Company as at 31st March,2020 and its profitincluding other comprehensive income, its cash flows & the changes in equity for the year ended on thatdate.

Basis for Opinion

We have conducted our audit of the standalone financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company in accordance with theCode of Ethics' issued by the Institute of Chartered Accountants of India together with the Ethical requirements

Head Office8th Floor, Times Square, Nr. Pariseema,C G Road, Navrangpura, Ahmedabad.(O) +91 79 2640 7795 96(E) [email protected](W) www.dgsm.co.in


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that are relevant to our audit of the financial statements under the provision of the Companies Act, 2013and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Codes of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the standalone financial statements for the financial year ended 31st March, 2020. These matterswere addressed in the context of our audit of the standalone financial statements as a whole, and in formingour opinion thereon, and we do not provide a separate opinion on these matters.

Information other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The other information comprisesthe information included in the Annual Report, but does not include the standalone financial statements andour auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Management for Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the CompaniesAct, 2013 (“the Act”) with respect to the preparation of these standalone financialstatements that give a trueand fair view of the financial position, financial performance including changes in equity, other comprehensiveincome and cash flows of the Company in accordance with the accounting principles generally accepted inIndia, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read withthe Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design, implementation and maintenance of adequate internal financial controls, that were


106


operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to thepreparation and presentation of the standalone financial statements that give a true and fair view andarefree from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management is responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate the Company or tocease operation, or has no realistic alternative but to do so.Those Board of Directors are also responsiblefor overseeing the company's financial reporting process.

Auditor's Responsibility for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor's reportthat includes our opinion. Reasonable assurance is high level of assurance, but is not a guarantee that anaudit 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 the users taken onthe basis ofthese standalone financial statements.

As a Part of an audit in accordance with SAs, we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

v Identify and assess the risk of material misstatement of the standalone financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detectinga material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud mayinvolve collusion, forgery, intentional omission, misrepresentations, or the override of internal control.

v Obtain an understanding of internal control relevant to the audit in order to design audit procedurethat are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, weare also responsible for expressing our opinion on whether the Company has adequate InternalFinancial Controls System in place and the operating effectiveness of such controls.

v Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

v Conclude on the appropriateness of management's use of the going concern basis of accountingand,based on the audit evidence obtained, whether a material uncertainty exists related to events or


107


conditions that may cast significant doubt on the Company's ability to continue as a going concern. Ifwe conclude that a material uncertainly exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or, if such disclosures are inadequate, tomodify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However, future events or conditions may cause the Company to cease to continueas a going concern.

v Evaluate the overall presentation, structure and content of the standalone financial statements includingthe disclosures, and whether the standalone financial statements represent the underlying transactionsand events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit finding, including any significant deficiencies in internal controlthat we identify during our audit.

We also provide those charge with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, relatedsafeguards.

From the matters communicated with those charged with governance, we determine those matters thatwere most significance in the audit of the standalone financial statements for the year ended 31st March,2020 and are therefore the key audit matters. We describe these matters in our auditor's report unlesslawor regulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine the matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order, 2016 (“the Order”), issued by the Central Governmentof India in terms of sub-section(11) of section 143 of the Companies Act, 2013, we give in the Annexure A,a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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 knowledgeand 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 asit appears from our examination of those books.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8) of


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the Act is not attached since the Company has no branches and the point is not applicable to theCompany for the year under review.

d) The Balance Sheet, the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome, Statement of Changes in Equity and the Cash Flow Statement dealt withby this Report are inagreement with the books of account.

e) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standardsspecified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules,2015, as amended.

f) The Company being a Government Company, in view of Notification No. G.S.R 463 (E) dated 5th

June, 2015 issued by Government of India, the provision of Section 164(2) of the Companies Act,2013 are not applicable to the Company.

g) With respect to the adequacy of the internal financial controls over financial reporting of the Companywith reference to these standalone financial statements and the operating effectivenessof such controls,refer to our separate Report in “Annexure B”.

h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation andaccording to the explanations given to us:

i) The Company has disclosed the impact of pending litigations on its financial position initsstandalone financial statements –Refer Note 39 to the standalone financial statements;

ii) The Company did not have any long-term contracts including derivative contracts for whichthere were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.

iv) As required by C & AG of India through directions/sub-directions issued under Section 143(5)ofthe Companies Act, 2013, we give our report in the attached “Annexure C".

Place: Vadodara

Date: 29.09.2020

DGSM & Co.Chartered AccountantsRegistration No.101606W

Sd/-CA. ABHINAV MALAVIYAPartnerMembership No. 144245UDIN:20144245AAAALW1828


109


Annexure A to the Independent Auditor's Report

The Annexure referred to in our report to the members of Gujarat Urja Vikas Nigam Limited for the yearended March 31st, 2020, we report that:

I.

(a) The Company has compiled the Property, Plant and Equipment register in respect ofAssetspurchased / constructed as well as assets of erstwhile GEB transferred to the Companyunderthe Notification dated 03/10/2006 issued by Government of Gujarat showingparticularsincluding quantitative details & situation of fixed assets.

(b) As informed to us, the Property, Plant and Equipment have been physically verified by themanagement during the year. According to the information & explanation given to us, nomaterialdiscrepancy was noticed on such verification.

(c) As per the information and explanations provided to us, the title deeds of immovablepropertiesreflected in financial statement are held in the name of the Company.

II. The Company does not hold any inventory of goods. Accordingly sub-clauses (a), (b) & (c) of clause(ii) are not applicable.

III. In our opinion and according to the information & explanations given to us, the Company has notgranted loans, secured or unsecured to Companies, firms, LLP or other parties covered in registermaintained under section 189 of the Companies Act 2013, and therefore, the provisions of clauses(iii)(a) & (iii)(b) of the Order are not applicable to the Company.

IV. In our opinion and according to the information and explanations given to us, in respect of loans,investments, guarantees, and security, provisions of section 185 and 186 of the Companies Act,2013 have been complied with.

V. Based on our scrutiny of Company's record and according to the information and explanation providedby the management, in our opinion, the Company has not accepted any loans or deposits, which are“Deposits” within the meaning of Rule 2(b) of the Companies (Acceptance of Deposit's) Rules, 2014.

VI. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies(Cost Records and Audit) Rules, 2014 prescribed by the Central Government under Section 148(1)(d)of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and costrecords have been maintained. We have, however, not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.


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VII. In respect of Statutory Dues:

(a) According to the records of the Company, undisputed statutory dues including Provident Fund,Employees' State Insurance, Income Tax, Service tax, Goods and Service Tax, Cess and anyother material statutory dues have been generally regularly deposited with the appropriateauthorities. According to the information and explanations given to us, no statutory dues wereoutstanding, as at 31st March, 2020 for a period of more than six monthsfrom the date theybecame payable.

(b) According to the information and explanation given to us, there are no dues of Income Tax orSales Tax or Wealth Tax or Service Tax or duty of customs or value added tax or cess, whichhave not been deposited on account of any dispute except as under:

VIII. In our opinion and according to the information and explanations given by the management theCompany has not defaulted in repayment of loans or borrowing to a Financial Institution, Bank,Government or dues to debenture holders.

IX. Based on our audit procedures and as per the information and explanations given by the management,Company has not raised money by initial public offer or further public offer (including debt instruments)and term loans during the period covered by our audit report.

X. In our opinion and according to the information and explanations given by the management, nomaterial fraud by the Company or on the Company by its officers or employees has been noticed orreported during the year.

XI. The Company being a Government Company, in view of the Notification No. G.S.R 463 (E) dated 5th

June, 2015 issued by Ministry of Corporate Affairs, the provisions of section 197 read with ScheduleV to the Companies Act, 2013 are not applicable to the Company. So the question of reporting on thesame does not arise.

XII. In our opinion, the Company is not a Nidhi Company. Therefore, the provisions of clause 3(xii) of

Sr.No Nature of the Statute Nature of the

DisputeAmount(in Rs.) Period

Forum wheredispute ispending

1 Income Tax Act,1961 Recomputed MAT 81,02,36,539 AY 2017-18 CIT (A), Barodaand interest u/s234B & 234C


111


Companies (Auditor's Report) Order, 2016 are not applicable.

XIII. All transactions with related parties are in compliance with sections 177 and 188 of Companies Act,2013 and the details have been disclosed in the Financial Statements, as required by the applicableaccounting standards at Note 44 of standalone Ind AS financial statements.

XIV. Based on our examination of records and information provided to us by the management, wereportthat the Company has issued shares on right basis during the year under review and the requirementof section 62(1)(a) of the Companies Act, 2013 have been complied with and theamount raised havebeen used for the purposes for which the funds were raised.

XV. Based on our examination of records and information provided to us by management, the Companyhas not entered into any non-cash transactions with directors or persons connected with him.

XVI. The Company is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct,1934. Therefore, the provisions of clause 3(xvi) of Companies (Auditor's Report) Order, 2016 arenot applicable.

Place: Vadodara

Date: 29.09.2020

DGSM & Co.

Chartered Accountants

Registration No.101606W

Sd/-

CA. ABHINAV MALAVIYA

Partner

Membership No. 144245

UDIN:20144245AAAALW1828


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Annexure - B to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (“the Act”)

We have audited the Internal Financial Controls with reference to financial statements of Gujarat UrjaVikasNigam Limited (“the Company”) as of 31st March 2020 in conjunction with our audit of the standalone Ind ASfinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controlsbasedon the internal control over financial reporting criteria established by the Company consideringthe essentialcomponents of internal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). These responsibilitiesinclude the design, implementation and maintenance of adequate internal financialcontrols that were operatingeffectively for ensuring the orderly and efficient conduct of its business,including adherence to Company'spolicies, safeguarding of its assets, prevention and detection of fraudsand errors, accuracy and completenessof the accounting records, and timely preparation of reliablefinancial information, as required under theCompanies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with referencetofinancial statements based on our audit. We conducted our audit in accordance with the Guidance NoteonAudit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the StandardsonAuditing, 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, both applicable to an audit ofInternalFinancial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan andperform the audit toobtain reasonable assurance about whether adequate internal financial controlswith reference to financialstatements was established and maintained and if such controlsoperatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system with reference to financial statements and their operating effectiveness. Our auditof internal financial controls with reference to financial statements included obtaining anunderstanding ofinternal financial controls with reference to financial statements, assessing the risk thata material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the


113


assessed risk. The procedures selected depend on the auditor's judgment, includingthe assessment of therisks of material misstatement of the standalone Ind AS financial statements,whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Company's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial controls with reference to financial statements is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to financial statements includes those policies and proceduresthat

1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the Company;

2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and

3) Provide reasonable assurance regarding prevention or timely detection of unauthorizedacquisition,use, or disposition of the Company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements,including the possibility of collusion or improper management override of controls, material misstatementsdue to error or fraud may occur and not be detected. Also, projections of any evaluation of the internalfinancial controls with reference to financial statements to future periods are subject to the risk that theinternal financial controls over financial reporting may become inadequate because of changes in conditions,or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Companyhas, in all material respects, an adequate internal financial control system over financial reporting and suchinternal financial controls with reference to financial statements were operating effectively as at 31st March


114


2020, based on the internal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

Place: Vadodara

Date: 29.09.2020

DGSM & Co.



Sd/-


Partner




115


Annexure C to the Independent Auditor's Report

The Annexure referred to in our report to the members of Gujarat UrjaVikas Nigam Limited for the yearended March 31st, 2020:


Sr. No Directions / Sub Directions Response / Remedial Measures

Whether the Company has system in placetoprocess all accounting transactions throughIT system? If yes, the implications of processingof accounting transactionsoutside the IT systemon the integrity of theaccounts along with thefinancial implication,if any, may be stated.

Yes, the Company has a well laid out advancedIT system in place to process all accountingtransactions through the same.

1.

2. No.

3. Yes.

4. Not Applicable

5.

Whether there is any restructuring of nexistingloans or cases of waiver/write off ofdebts/ans/interest etc. made by a lender tothe Companydue to the Company's inabilityto repay the loan?If yes, the financial impactmay be stated

Whether funds received/receivable for specificschemes from Central/State Agencies wereproperly accountedfor/utilized as per its termand conditions? List the cases of deviation

Adequacy of steps to prevent encroachment ofidle land owned by Company may beexamined.In case land of the Company isencroached,under litigation, not put to usedeclared orsurplus, details may be provided

Whether land acquisition involved in setting upnew projects, report whether settlementof duesdone expeditiously and in atransparent mannerin all cases. The case ofdeviation may pleasebe detailed.

Not Applicable

116


Yes.6. Whether the Company has an effectivesystemfor recovery of revenue as percontractual termsand the revenue isproperly accounted for in thebooks ofaccounts in compliance with theapplicable Accounting Standards.

7. Not ApplicableHow much cost has been incurred onabandonedprojects and out of this howmuch cost has beenwritten off?

DGSM & Co.



Sd/-


Partner



Place: Vadodara

Date: 29.09.2020


117


ASSETS

(1) Non-Current Assets(a) Property, Plant and Equipment 2 4,080.19 4,521.19(b) Intangible Assets 2 231.96 232.14(c) Capital Work-In-Progress 2 3,989.27 -(d) Financial Assets

(i) Investments 3 25,90,174.57 22,62,812.56(ii) Loans 4 113.63 144.44(iii) Other Financial Assets 5 1,455.50 1,472.64

Total Non-Current Assets 26,00,045.11 22,69,182.98

(2) Current Assets(a) Financial Assets

(i) Trade Receivables 6 56.08 3,114.52(ii) Cash and cash equivalents 7 1,979.96 3.54(iii) Bank Balances other than mentioned in 8 54.22 51.42

cash and cash equivalents(iv) Loans 9 42.76 45.12(v) Other Financial Assets 10 12,39,871.80 8,47,965.21

(b) Current Tax Assets (net) 11 - 4,043.31(c) Other Current Assets 12 73,388.58 13,117.53

Total Current Assets 13,15,393.40 8,68,340.63

Total 39,15,438.51 31,37,523.61

EQUITY AND LIABILITIESEquity

(a) Equity Share Capital 13 22,34,781.20 19,77,222.21(b) Other Equity 14 1,75,255.15 91,997.35

Total Equity 24,10,036.35 20,69,219.56

Deferred Government Grants 15 86.50 11.84

Particulars NoteNo.

As at31st March,2020

As at31st March,2019

Balance Sheet as at 31st March, 2020 ( in Lakhs)


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Liabilities(1) Non-Current Liabilities

(a) Financial Liabilities(i) Borrowings 16 10,633.96 12,566.23(ii) Trade Payables 17

- Dues of Micro and Small Enterprises - -- Dues of Other than Micro and Small Enterprises 85.29 85.29

(iii) Other Financial Liabilities 18 779.37 731.84(b) Provisions 19 1,284.40 1,168.53(c) Deferred Tax Liabilities (Net) 20 - -

Total Non-Current Liabilities 12,783.03 14,551.89(2) Current Liabilities

(a) Financial Liabilities(i) Borrowings 21 22,803.99 25,454.94(ii) Trade payables 22

- Dues of Micro and Small Enterprises - 0.13- Dues of Other than Micro and Small Enterprises 9,81,969.40 6,11,797.54

(iii) Other Financial liabilities 23 4,86,779.92 4,00,237.29(b) Other current liabilities 24 36.18 47.74(c) Provisions 25 129.93 16,202.68(d) Current Tax Liabilities (net) 26 813.21 -

Total Current Liabilities 14,92,532.63 10,53,740.32

Total 39,15,438.51 31,37,523.61

Significant Accounting Policies and Notes to 1-53Financial Statements

As per our Report of even date attached

For DGSM & Co.Chartered AccountantsFirm Registration No. 101606W


Sd/-(SUNAINA TOMAR, IAS)

ChairpersonDIN: 03435543

Sd/-(SHAHMEENA HUSAIN,IAS)

Managing DirectorDIN:03584560

Sd/-(CA. ABHINAV MALAVIYA)PartnerMembership No. 144245

Sd/-(SHUBHADEEP SEN)

General Manager (F&A) & CFO

Sd/-(PARTHIV BHATT)

Company Secretary

Place : VadodaraDate : September 29, 2020



119


Statement of Profit and Loss for the year ended 31st March, 2020

Particulars NoteNo.

For the year ended 31st March, 2019


I Revenue from operations 27 46,38,114.95 44,86,753.40II Other Income 28 1,792.42 4,198.66III Total Income (I+II) 46,39,907.37 44,90,952.06IV EXPENSES

Purchase of Power 29 45,99,648.73 44,76,498.62Employee Benefit Expenses 30 14,827.71 3,609.33Finance Costs 31 1,680.01 2,010.81Depreciation and Amortization Expense 2 615.64 585.60Other Expenses 32 3,005.75 4,676.77Total Expenses (IV) 46,19,777.83 44,87,381.13

V Profit Before Tax (III-IV) 20,129.54 3,570.93VI Tax Expense: 33

(a) Current Tax 9,489.96 770.00(b) Deferred Tax - -

VII Profit for the Year (V-VI) 10,639.58 2,800.93 VIII Other Comprehensive Income (OCI)

(a) Items that will not be reclassified toProfit and Loss

(i) Re-measurement of the DefinedBenefit Plans 38.26 (19.03)

(ii) Equity Instruments through OCI (3,453.73) 2,606.36Total of Other Comprehensive Income (OCI) (VIII) (3,415.47) 2,587.33

IX Total Comprehensive Income for the Year (VII+VIII) 7,224.12 5,388.26X Earnings Per Equity Share (Refer Note No. 34):

Basic (in ) 0.05 0.02Diluted (in ) 0.05 0.02See accompanying Notes to the Financial Statements 1-53

( in Lakhs)











Sd/-(PARTHIV BHATT)

Company Secretary




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Cash Flow Statement for the Year Ended 31st March, 2020

Particulars For the year ended 31st March, 2019


[A] CASH FLOW FROM OPERATING ACTIVITIESProfit Before Tax 20,129.54 3,570.93Adjustments for:Depreciation and Amortization Expense 615.64 585.60Remeasurement of Defined Benefit Plan 38.26 (19.03)Dividend Income (1,342.81) (1,237.14)Interest Income (10.03) (661.19)Deferred income (3.62) (2.29)Finance Cost 1,680.01 2,010.81(Profit)/Loss on Sale of Fixed Assets (Net) 0.37 3.44Operating Profit/(Loss) before changes in Working Capital 21,107.35 4,251.14

Adjustment for Increase)/Decrease in Operating AssetsTrade Receivables 3,058.44 (3,075.89)Loans and Other Financials Assets (3,91,847.24) (2,21,674.93)Other non Financial Assets (60,271.42) 1,482.61

Adjustment for Increase/(Decrease) in Operating LiabilitiesTrade Payables 3,70,171.74 74,331.80Other Financial Liabilities 86,884.11 (8,079.18)Other Non-Financial Liabilities & Provisions (15,968.43) 9,556.72Cash Flow from operations after changes in Working Capital 13,134.55 (1,43,207.72)Net Direct Taxes (Paid)/Refunded (4,633.44) (2,421.97)Net Cash Flow from/(used in) Operating Activities 8,501.11 (1,45,629.69)

[B] CASH FLOW FROM INVESTING ACTIVITIESPurchase of PPE including Capital Advances & CWIP (4,362.66) (699.86)Sale of PPE (0.08) 5.82Investment in Subsidiary Companies (3,25,815.73) (2,70,343.82)Dividend Income 1,342.81 1,237.14Interest Received 0.99 615.32Bank Balances not considered as Cash and Cash Equivalents (2.80) (2.64)Net Cash Flow from/(used in) Investing Activities (3,28,837.47) (2,69,188.04)

( in Lakhs)


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[C] CASH FLOW FROM FINANCING ACTIVITIESProceeds from Issue of Shares/Share Application Money 3,28,592.67 2,76,709.20Deferred Government Grants 78.28 -(Repayment)/Proceeds from Borrowings(refer Note 37 (c) committed credit facilities underliquidity risk) (4,583.22) 23,520.03Interest & Finance Expenses (1,774.95) (2,102.03)Net Cash Flow from/(used in) Financing Activities 3,22,312.78 2,98,127.20Net Increase/ (Decrease) in Cash andCash Equivalents 1,976.42 (1,16,690.53)Cash & Cash Equivalents at beginning of period (see Note 1) 3.54 1,16,694.07Cash and Cash Equivalents at end of period (see Note 1) 1,979.96 3.54Notes :

1 Cash and Cash equivalents comprise of:Cash on Hand 1.38 2.19Balance with Banks 1,978.58 1.35Deposits with Banks (with maturity less than 3 months) - -Cash and Cash equivalents 1,979.96 3.54Effect of Unrealised foreign exchange (gain)/loss (Net) - -Cash and Cash equivalents as restated 1,979.96 3.54

2 The Cash Flow Statement has been prepared under the ‘Indirect Method’ set out in IndianAccounting Standards (Ind AS) - 7 “Statement of Cash Flows”

3 Figures of the previous year have been regrouped / reclassified wherever necessary.











Sd/-(PARTHIV BHATT)

Company Secretary




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Statement of Changes in Equity for the year ended on 31st March, 2020

Equity Share Capital

Particulars Amount( in Lakhs)

Balance as on 31st March, 2018 16,22,754.99Changes during the year 3,54,467.22Balance as on 31st March, 2019 19,77,222.21Changes during the year 2,57,558.99Balance as on 31st March, 2020 22,34,781.20

Other Equity ( in Lakhs )

Balance as at 31st March, 2018 25,178.63 1,17,518.99 21,669.49 1,64,367.11

Profit for the Year 2,800.93 2,800.93

Other Comprehensive Income

for the Year (net of Tax) (19.03) 2,606.36 2,587.33

Total Comprehensive Income

for the Year 2,781.90 2,606.36 5,388.26

Add: Share Application Money

pending allotment 39,760.97 39,760.97

Less: Shares Issued (1,17,518.99) (1,17,518.99)

Balance as at 31st March, 2019 27,960.53 39,760.97 24,275.85 91,997.35

Particulars

Reservesand

Surplus

ShareApplication

Moneypending

allotment

Item of OtherComprehensive

Income

TotalEquityInstruments

through OtherComprehensive

Income

RetainedEarnings


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Profit for the Year 10,639.58 10,639.58

Other Comprehensive Income

for the Year (net of Tax) 38.26 (3,453.73) (3,415.47)

Total Comprehensive Income

for the Year 10,677.84 (3,453.73) 7,224.12

Add: Share Application Money

pending allotment 1,15,794.65 1,15,794.65

Less: Shares Issued (39,760.97) (39,760.97)

Balance as at 31st March, 2020 38,638.37 1,15,794.65 20,822.12 1,75,255.15











Sd/-(PARTHIV BHATT)

Company Secretary




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Note: 1 CORPORATE INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES

A Corporate information

Gujarat UrjaVikas Nigam Limited ('GUVNL' or 'the Company') is a wholly owned undertaking ofGovernment of Gujarat domiciled and incorporated in India having its registered office at "SardarPatel Vidyut Bhavan", Race Course, Vadodara, Gujarat -390007.

Govt. of Gujarat restructured Gujarat Electricity Board (“GEB”) effective 1st April 2005, as per variousadministrative and statutory actions to implement the Financial Restructuring Plan of GEB and splitthe business and activity of Generation, Transmission and Distribution of electricity by demerger ofthe respective units and vested the same along with all its assets and liabilities (relating to the respectiveunits) in various Companies, viz. Gujarat State Electricity Corporation Ltd., Gujarat Energy TransmissionCorporation Ltd., Dakshin Gujarat Vij Company Ltd., Madhya Gujarat Vij Company Ltd., PaschimGujarat Vij Company Ltd. and Uttar Gujarat Vij Company Ltd. on functional basis and the balance(residual) assets were allocated to the Company.

In terms of the Financial Restructuring Plan of GEB, Govt. of Gujarat notified the values of assets andliabilities as on 01.04.2005, vested in the said six subsidiary companies as well as the Company on3rd October 2006. The Company is engaged in the business of purchase and sale of electricity (includingbulk purchase and sale), hold shares in other companies, and acquire and hold residual assets andliabilities of erstwhile GEB.The principle place of business is at the registered office at "Vidyut Bhavan",Race Course, Vadodara, Gujarat -390007.

B Recent Accounting Pronouncements

On 24th July 2020, the Ministry of Corporate Affairs (MCA) has issued amendments to certain Ind AS.The amendments are effective from annual reporting periods beginning on or after 1st April, 2020.However, with respect to Ind AS 116, in case a lessee has not yet approved the financial statementsfor issue before the issuance of the amendments, then the same may be applied for annual reportingperiods beginning on or after 1st April 2019.

Following are the Indian Accounting Standards which have been amended on various issues witheffect from April 1st, 2020. The following amendments are relevant to the company:

a) Ind AS 1, Presentation of Financial Statements and Ind AS 8, Accounting Policies, Changes inAccounting Estimates and Error: Refined definition of term 'material'

b) Ind AS 103, Business Combinations: Revised definition of a 'business' and introduction of an


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optional concentration test to permit a simplified assessment of whether an acquired set ofactivities and assets is not a business

c) Ind AS 109, Financial Instruments: Modification to some specific hedge accounting requirementsto provide relief to the potential effects of uncertainty caused by the interest rate benchmark(IBOR) reform

d) Ind AS 107, Financial Instruments Disclosure: Additional disclosures pertaining to interest ratebenchmark reforms.

e) Ind AS 116, Leases: Practical expedient which permits lessees not to account for COVID-19related rent concessions as a lease modification.

None of these amendments are expected to have any material effect on the Company's financialstatements.

C Significant Accounting Policies

1. Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards ("Ind AS"),under Section 133 of the Act read together with the Companies (Indian Accounting Standards) Rules,2015 as amended except in so far as the said provisions are inconsistent with the provisions of theElectricity Act, 2003.

2. Basis of Measurement

These financial statements are prepared in accordance with Ind ASs, under the historical costconvention on the accrual basis except for certain assets and liabilities which are measured at fairvalue/amortized cost/net present value at the end of each reporting period; as explained in theaccounting policies below. These accounting policies have been applied consistently over all periodspresented in these financials statements.

Historical cost is generally based on the fair value of the consideration given in exchange for goodsand services.

As the operating cycle cannot be identified in normal course due to the special nature of industry, thesame has been assumed to have duration of 12 months. Accordingly, all assets and liabilities havebeen classified as current or non-current as per the Company's operating cycle and other criteria setout in Ind AS-1 'Presentation of Financial Statements' and Schedule III to the Companies Act, 2013.


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The Financial Statements are presented in Indian Rupees and all values are rounded off to thenearest two decimal lacs except otherwise stated.

Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value measurement isbased on the presumption that the transaction to sell the asset or transfer the liability takes placeeither:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements arecategorised within the fair value hierarchy, described as follows, based on the lowest level input thatis significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is unobservable.

3. Property, Plant & Equipment (including Capital Work in progress)

(a) Property, Plant & Equipment

Property, Plant & Equipment (PPE) comprises of Tangible Assets. PPE are stated at cost afterreducing accumulated depreciation. The cost of PPE comprises of its purchase price or itsconstruction cost or any cost directly attributable to bring the asset into the location and conditionnecessary for it to be capable of operating in the manner intended by the management anddecommissioning costs. Directly attributable costs are capitalized until the asset is ready foruse and includes borrowing cost capitalised in accordance with the Company's accountingpolicy.

Buildings held for use in the supply of goods or services or for administrative purposes arestated in the Balance Sheet at cost less accumulated depreciation and impairment losses, ifany.


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Subsequent costs are included in the asset's carrying amount or recognised as a separateasset, as appropriate, only when it is probable that future economic benefits associated withthe item will flow to the Company and the cost of the item can be measured reliably. Subsequentcosts relating to day to day servicing of the item are not recognised in the carrying amount of anitem of Property, Plant and Equipment; rather these costs are recognised in the Statement ofProfit & Loss as incurred.

An item of PPE is de-recognised upon disposal or when no future economic benefits are expectedto arise from the continued use of the PPE. Any gain or loss arising on the disposal or retirementof an item of PPE is determined as the difference between the sale proceeds and the carryingamount of the PPE and is recognised in the Statement of Profit and Loss.

(b) Capital Work in progress

Capital work-in-progress includes the cost incurred on PPE that are not yet ready for the intendeduse and is capitalized whenever ready for use. All directly attributable expenditures are allocatedto the projects on pro rata basis to the accretion made to respective projects.

4. Depreciation

Depreciation of these PPE commences when the assets are available for their intended use.

The Company, being engaged in electricity business, is covered under the Electricity Act, 2003 andprovisions of the Electricity Act supersede the provisions of the Companies Act, 2013. Accordingly,the Company charges depreciation on straight line method at thedepreciation rates, the methodologyand the residual value as prescribed in GERC (MYT) Regulations, 2016.

Therates/range of depreciation of Property, Plant and Equipment are as follows:

Asset Description Rates/Range

Buildings 3.34%

Plant & Machinery 5.28% to 9.50%

Lines & Cable Net Work Upto 5.28%

Vehicles 9.50%

Furniture-Fix & Elect-Light & Fan Installations 6.33%

Computers 15%

Office Equipments 6.33%


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Depreciation on additions/deletions to PPE during the year is provided for on a pro-rata basis withreference to the date of additions/deletions, except low value items not exceeding 5,000/- which arefully depreciated at the time of addition. Depreciation on subsequent expenditure on PPE arising onaccount of capital improvement or other factors is provided for prospectively over the remaininguseful life.

The estimated useful life, residual values and depreciation method are reviewed on an annual basisand if necessary, changes in estimates are accounted for prospectively.

5. Intangible Assets

Intangible Assets with finite useful life are recognized only if it is probable that future economic benefitsthat are attributable to the assets will flow to the enterprise and the cost of assets can be measuredreliably. The Intangible Assets are recorded at cost and are carried at cost less accumulatedamortization and accumulated impairment losses, if any.

An Intangible Asset is derecognized on disposal, or when no future economic benefits are expectedfrom its use or disposal. Gains or losses arising from derecognition of an intangible asset, measuredas the difference between net disposal proceeds and carrying amount of the asset are recognized inthe Statement of Profit and Loss when the asset is derecognized.

The Company amortizes Computer Software on straight line method as per the methodology andresidual value in accordance with GERC (MYT) Regulations, 2016.

6. Impairment of Tangible and Intangible Assets

The Company reviews at each reporting period whether there is any indication that an asset may beimpaired. If any such indication exists, the Company estimates the recoverable amount of the asset.If such recoverable amount of the asset or the recoverable amount of the Cash Generating Unit towhich the asset belongs is less than its carrying amount, the carrying amount is reduced to itsrecoverable amount. The reduction is treated as an impairment loss and is recognized in the Statementof Profit and Loss. If at the reporting period, there is an indication that there is a change in thepreviously assessed impairment loss, the recoverable amount is reassessed and the asset is reflectedat the recoverable amount.

7. Non-Current Assets held for Sale

The Company classifies Non-Current Assets as held for sale if their carrying amounts will be recoveredprincipally through a sale rather than through continuing use of the assets and actions required to


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complete such sale indicate that it is unlikely that significant changes to the plan to sell will be madeor that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if themanagement expects to complete the sale within one year from the date of classification.

Non-current assets or disposal groups classified as held for sale are measured at the lower of carryingamount and fair value less costs to sell.

Property, Plant and Equipment and intangible assets are not depreciated or amortized once classifiedas held for sale.

8. Government Grant

Government Grants (including Subsidies) are not recognized until there is reasonable assurance thatthey will be received and the Company will comply with the conditions associated with the Grant.

Grants that compensate the Company for the cost of an asset are initially set up as Deferred Incomeand recognized in the Statement of Profit and Loss on a systematic basis over the period and inproportions of depreciation expense of the assets. Grants that compensate the Company for expensesincurred are recognizedin the Statement of Profit and Loss over the period in which the related costsare incurred and shown separately.

9. Investments in Subsidiary and Associate

Investments in Subsidiaries and Associates are carried at cost less accumulated impairment losses,if any. Where an indication of impairment exists, the carrying amount of investment is assessed andwritten down immediately to its recoverable amount. On disposal of investments in Subsidiaries andAssociate, the difference between net disposal proceeds and the carrying amounts are recognized inthe Statement of Profit and Loss.

10. Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in anamount that reflects the consideration we expect to receive in exchange for those products or services.

Revenue is measured at the transaction price of the consideration received or receivable and representsamounts receivable for goods and services provided in the normal course of business based on theconsideration specified in a contract with a customer and excludes amounts collected on behalf ofthird parties.


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Contract assets are recognized when there is right to consideration in exchange for goods or servicesthat are transferred to a customer and when that right is conditioned on something other than thepassage of time. Contract assets are classified as unbilled receivables (only act of invoicing is pending)as per contractual terms.

Revenue from Sale of Power

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

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

Other Revenue from Power related Activities

Rebate (Cash Discount) for Prompt Payment towards purchase of power (net), Cash Discount andCDM Benefit from renewable energy are recognised on cash basis.

Dividend Income

Dividend Income is accounted in the year in which the right to receive the dividend is established.

Penalty and Liquidated Damages

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

Liquidated Damages and Penalties in relation to purchase of power and completion of projects areaccounted on actual recovery.

Other Income

Interest on investment is booked on a time proportion basis taking into account the amounts investedand the rate of interest.

Claims lodged with the Insurance Company in respect of risks covered are accounted for as andwhen the claim is received.

Other Incomes are recognized on accrual basis except when ultimate realization of such income isuncertain.


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11. Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if thecontract conveys the right to control the use of an identified asset for a period of time in exchange forconsideration.

a. Leases as Lessee (Assets taken on lease)

The Company applies a single recognition and measurement approach for all leases, except forshort-term leases and leases of low-value assets. The Company recognises lease liabilities to makelease payments and right-of-use assets representing the right to use the underlying assets.

i. Lease Liabilities:

At the commencement date of the lease, the Company recognises lease liabilities measured atthe present value of lease payments to be made over the lease term. The lease paymentsinclude fixed payments (including in substance fixed payments) less any lease incentivesreceivable, variable lease payments that depend on an index or a rate, and amounts expectedto be paid under residual value guarantees. The lease payments also include the exercise priceof a purchase option reasonably certain to be exercised by the Company and payments ofpenalties for terminating a lease, if the lease term reflects the Company exercising the option toterminate. The variable lease payments that do not depend on an index or a rate are recognisedas expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses the incremental borrowingrate at the lease commencement date if the interest rate implicit in the lease is not readilydeterminable. After the commencement date, the amount of lease liabilities is increased toreflect the accretion of interest and reduced for the lease payments made.

The Company accounts for each lease component within the contract as a lease separatelyfrom non-lease components of the contract and allocates the consideration in the contract toeach lease component on the basis of the relative stand-alone price of the lease componentand the aggregate stand-alone price of the non-lease components, except for leases where thecompany has elected to use practical expedient not to separate non-lease payments from thecalculation of the lease liability and ROU asset where the entire consideration is treated aslease component.


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ii. Right-of-use Assets:

The Company recognises right-of-use (ROU) assets at the commencement date of the lease(i.e., the date the underlying asset is available for use). Right-of-use assets are measured atcost, less any accumulated depreciation and impairment losses, and adjusted for anyremeasurement of lease liabilities. The cost of right-of-use assets includes the amount of leaseliabilities recognised, initial direct costs incurred, and lease payments made at or before thecommencement date less any lease incentives received. Unless the Company is reasonablycertain to obtain ownership of the leased asset at the end of the lease term, the recognisedright-of-use assets are depreciated on a straight-line basis over the shorter of its estimateduseful life and the lease term. Right-of use assets are subject to impairment. If ownership of theleased asset transfers to the Company at the end of the lease term or the cost reflects theexercise of a purchase option, depreciation is calculated using the estimated useful life of theasset.

Modifications to a lease agreement beyond the original terms and conditions are generallyaccounted for as a re-measurement of the lease liability with a corresponding adjustment to theROU asset. Any gain or loss on modification is recognized in the Statement of Profit and Loss.However, the modifications that increase the scope of the lease by adding the right to use oneor more underlying assets at a price commensurate with the stand-alone selling price areaccounted for as a separate new lease. In case of lease modifications, discounting rates usedfor measurement of lease liability and ROU assets is also suitably adjusted.

iii. Short-term leases and leases of low-value assets:

The Company applies the short-term lease recognition exemption to its short-term leases ofProperty, Plant and Equipment (i.e., those leases that have a lease term of 12 months or lessfrom the commencement date and do not contain a purchase option). It also applies the leaseof low-value assets recognition exemption to leases that are considered of low value. Leasepayments on short-term leases and leases of low-value assets are recognised as expense ona straight-line basis over the lease term or another systematic basis if that basis is morerepresentative of the pattern of the lessee's benefit.

b. Leases as Lessor (assets given on lease)

When the company acts as lessor, it determines at the commencement of the lease whether it is afinance lease or an operating lease. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease except where another systematic basis is morerepresentative of the time pattern of the benefit derived from the asset given on lease.


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12. Employee Benefits

Employee Benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment,compensated absences and retirement benefits.

Short Term Employee Benefits

Short Term Employee Benefits expected to be paid in exchange for services rendered by the employeesare recognized undiscounted during the period employee renders services. These benefits includeremuneration, bonus, incentives, etc.

Long Term Employee Benefits

Defined Contribution Plans

Retirement benefit plans in the form of provident fund, pension fund and superannuation schemesare charged as an expense on an accrual basis when employees have rendered the service.

Defined Benefit Plans

The Company has maintained a Group Gratuity Cum Life Assurance Policy with M/s. Life InsuranceCorporation of India (LIC) managed by a separate Trust, towards which it annually contributes a sumbased on the actuarial valuation made by M/s. LIC. The liability or asset recognised in the BalanceSheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligationat the end of the reporting period less the fair value of plan assets. The year's liability is estimated onthe basis of actuarial valuation made by LIC using the Projected Unit Credit Method and is charged tothe Statement of Profit and Loss.

Re-measurement gains and losses arising from experience adjustments and changes in actuarialassumptions are recognised in the period in which they occur, directly in Other Comprehensive Incomeand in the Balance Sheet.

The retirement benefit obligation recognised in the balance sheet represents the actual deficit orsurplus in the Company's defined benefit plans. Any surplus resulting from this calculation is limitedto the present value of any economic benefits available in the form of reductions in future contributionsto the plans.

Other Long Term Employee Benefits

Other Long Term Employee Benefitscomprise of leave encashment. The leave benefits are recognizedbased on the present value of defined obligation and the year's liability is estimated on the basis of


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actuarial valuations made by LIC using the Projected Unit Credit Method and is charged to theStatement of Profit and Loss.

13. Taxes on Income

Income Tax Expense represents the sum of Current Tax and Deferred Tax.

Current Tax

Tax currently payable is based on taxable profit for the year. Taxable profit differs from 'Profit BeforeTax' as reported in the Statement of Profit and Loss because of items of income or expense that aretaxable or deductible in other years and items that are never taxable or deductible. The Company'scurrent tax is calculated using tax rates that have been enacted or substantively enacted by the endof the reporting period.

Deferred Tax

Deferred Tax is recognized on temporary differences between the carrying amounts of assets andliabilities in the financial statements and the corresponding tax bases used in the computation oftaxable profit. Deferred Tax Liabilities (DTL) are generally recognized for all taxable temporarydifferences. Deferred Tax Assets (DTA) are generally recognized for all deductible temporarydifferences to the extent that it is probable that taxable profits will be available against which thosedeductible temporary differences can be utilized.

The carrying amount of Deferred Tax Assets is reviewed at the end of each reporting period andreduced to the extent that it is no longer probable that sufficient taxable profits will be available toallow all or part of the deferred tax asset to be utilised.

Deferred Tax Liabilities and Deferred Tax Assets are measured at the tax rates that are expected toapply in the period in which the liability is settled or the asset realized, based on tax rates (and taxlaws) that have been enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that wouldfollow from the manner in which the Company expects, at the end of the reporting period, to recoveror settle the carrying amount of its assets and liabilities.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there isconvincing evidence that the Company will pay normal income tax during the specified period. Suchasset is reviewed at each Balance Sheet date and the carrying amount of MAT credit asset is writtendown to the extent there is no longer a convincing evidence to the effect that the Company will paynormal income tax during the specified period.


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Current and deferred tax for the year

Current and deferred tax are recognized in Statement of profit or loss, except when they relate toitems that are recognized in other comprehensive income or directly in equity, in which case, thecurrent and deferred tax are also recognized in other comprehensive income or directly in equityrespectively.

14. Borrowing Costs

Borrowing Costs specifically identified to the acquisition or construction of qualifying assets is capitalizedas part of such assets. A qualifying asset is one that necessarily takes substantial period of time toget ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.

15. Events Occurring After The Reporting Period

Material adjusting events (that provides evidence of condition that existed at the end of reportingperiod) occurring after the end of reporting period are recognized in the financial statements. Nonadjusting events (that are indicative of conditions that arose subsequent to the end of reporting period)occurring after the end of reporting period that represents material change and commitment affectingthe financial position are disclosed in the financial statements.

16. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as aresult of a past event, it is probable that the Company will be required to settle the obligation, and areliable estimate can be made of the amount of the obligation.

The amount recognized as provision is the best estimate of the consideration required to settle thepresent obligation at the end of the reporting period, taking into account the risks and uncertaintiessurrounding the obligation. When a provision is measured using the cash flows estimated to settle thepresent obligation, its carrying amount is the present value of those cash flows.

Contingent Liabilities are disclosed in the financial statements by way of Notes to Accounts, unlesspossibility of an outflow of resources embodying economic benefit is remote.

Contingent Assets are not recognized but disclosed in the financial statements when an inflow ofeconomic benefit is probable.

17. Material Prior Period Errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for


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the prior periods presented in which the error occurred. If the error occurred before the earliest periodpresented, the opening balances of assets, liabilities and equity for the earliest period presented arerestated.

18. Earnings Per Share

Basic Earnings Per Share is computed by dividing the profit / (loss) by the weighted average numberof equity shares outstanding during the year.

Diluted Earnings Per Share is computed by adjusting the figures used in the determination of basicEPS to take into account:

- After tax effect of interest and other financing costs associated with dilutive potential equity shares.

The weighted average number of additional equity shares that would have been outstanding assumingthe conversion of all dilutive potential equity shares.

19. Segment Reporting

In accordance with IndAS 108, the operating segments used to present segment information areidentified on the basis of internal reports used by the Company's Management to allocate resourcesto the segments and assess their performance. The Board of Directors is collectively the Company's'Chief Operating Decision Maker' or 'CODM' within the meaning of IndAS 108.

20. Financial Instruments

Financial Assets and Financial Liabilities are recognized when the Company becomes a party to thecontractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value, except when the effect isimmaterial. Transaction costs that are directly attributable to the acquisition or issue of financialassets and financial liabilities (other than financial assets and financial liabilities at fair value throughprofit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities,as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financialassets or financial liabilities at fair value through profit or loss are recognized immediately in theStatement of Profit and Loss.

Financial Assets

Cash and Cash Equivalents

The Company considers all highly liquid financial instruments which are readily convertible into known


137


amounts of cash that are subject to an insignificant risk of change in value and having original maturitiesof three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalentsconsist of balances with banks which are unrestricted for withdrawal and usage.

Financial Assets at amortized cost

Financial assets are subsequently measured at amortized cost using the Effective Interest Method(EIR), except when the effect of applying it is immaterial, if these financial assets are held within abusiness whose objective is to hold these assets in order to collect contractual cash flows and thecontractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.

Financial Assets at fair value through Other Comprehensive Income (FVTOCI)

Financial Assets (including investments) are subsequently measured at fair value through othercomprehensive income if these financial assets are held within a businesswhose objective is achievedby both collecting contractual cash flows and selling financial assets and the contractual terms of thefinancial asset gives rise on specified dates to cash flows that are solely payments of principal andinterest on the principal amount outstanding.

The Company has made an irrevocable election to present in Other Comprehensive Income subsequentchanges in the fair value of equity investments not held for trading.

Financial Assets at fair value through Profit or Loss

Financial Assets (including investments) are subsequently measured at fair value through profit orloss unless it is measured at amortized cost or at fair value through Other Comprehensive Income oninitial recognition.

Impairment of Financial Assets

The Company assesses at each balance sheet date whether a financial asset or a group of financialasset is impaired. IndAS 109 requires expected credit losses to be measured through a loss allowance.The Company recognizes lifetime expected losses for all contract assets and all trade receivablesthat do not constitute a financing transaction. For all other financial assets, expected credit losses aremeasured at an amount equal to 12 months expected credit losses or at an amount equal to lifetimeexpected losses, if the credit risk on the financial asset has increased significantly since initialrecognition.


138


Derecognition of Financial Assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from theasset expire, or when it transfers the financial asset and substantially all the risks and rewards ofownership of the asset to another party.

On derecognition of a financial asset in its entirety (except for equity instruments designated asFVTOCI), the difference between the asset's carrying amount and the sum of the considerationreceived and receivable is recognized in the Statement of Profit and Loss.

Financial Liabilities and Equity Instruments

Classification as Debt or Equity

Debt and Equity instruments issued by the Company are classified as either financial liabilities or asequity in accordance with the substance of the contractual arrangements and the definitions of afinancial liability and an equity instrument.

Financial Liabilities at amortized cost

Financial liabilities are subsequently measured at amortized cost using the effective interest method.

Equity Instruments

An equity instrument is a contract that evidences residual interest in the assets of the Company afterdeducting all of its liabilities. Equity instruments issued by the Company are recorded at the proceedsreceived.

Derecognition of Financial Liabilities

The Company derecognizes Financial Liabilities when and only when, the Company's obligations aredischarged, cancelled or have expired. The difference between the carrying amount of the financialliability derecognized and the consideration paid and payable is recognized in the Statement of Profitand Loss.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument andof allocating interest income over the relevant period. The effective interest rate is the rate that exactlydiscounts estimated future cash receipts through the expected life of the debt instrument or whereappropriate, a shorter period, to the net carrying amount on initial recognition.


139


21. Power Purchase

Purchase of Power from Generation Subsidiary M/s. Gujarat State Electricity Corporation Ltd. (GSECL)is accounted on the basis of GERC Tariff Order as applicable from time to time for the power stationstransferred under the Financial Restructuring Plan approved by Govt. of Gujarat and for the existingpower stations with GSECL prior to unbundling, as per the provisions of respective Power PurchaseAgreements (PPAs).

Power purchased from Independent Power Producers(IPPs) are accounted (net of infirm power,wherever applicable) on the basis of Power Purchase Agreements entered into with the respectiveparties.

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

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

Power purchased from Renewable Sources and Traders (Bilateral) is accounted on the basis ofcontracts entered into with the respective parties.

Need based power is purchased by putting bids in Power Exchanges on day to day basis and thesame is accounted on acceptance of bids.

The energy accounts in few cases are delayed for settlement due to complexity in transactions involvedin power sector. The Company receives receivable / payable claims for past period due to delayedsettlement. The Company accounts such claims in the year of receipt as per prevailing practicefollowed.

22. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

In the course of applying the policies outlined in all notes under Note 1 above, the management of theCompany are required to make judgements, estimates and assumptions about the carrying amountof assets and liabilities that are not readily apparent from other sources. The estimates and associatedassumptions are based on historical experience and other factors that are considered to be relevant.Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimates are revised and future periods areaffected.


140


Critical Judgments in applying Accounting Policies

Following are the critical judgements andestimations that the Management have made in the processof applying the Company's Accounting Policies and that have significant effect on the amountsrecognized in the Financial Statements.

(a) Useful life of Property, Plant and Equipment1

Estimated useful life of Property, Plant and Equipment is based on a number of factors includingthe effects of obsolescence, demand, competition and other economic factors (such as thestability of industry and known technological advances) and the level of maintenance expendituresrequired to obtain the expected future cash flows from the asset.

(b) Evaluation of indicators for impairment of Property, Plant and Equipment2

The evaluation of applicability of indicators for impairment of assets require assessment ofexternal factors (significant decline in asset's value, economic or legal environment, marketinterest rates, etc.) and internal factors (obsolescence or physical damage of an asset, pooreconomic performance of the asset, etc.) which could result in significant change in recoverableamount of the Property, Plant and Equipment.

(c) Regulatory Deferral Accounts1

Ind AS - 114 “Regulatory Deferral Accounts” permits the Company to apply the requirements ofthis standard in its first Ind AS Financial Statements if and only if it conducts rate-regulatedactivities and recognised amounts that qualify as Regulatory Deferral Account Balances in itsfinancial statements in accordance with its previous GAAP. As the Company had consistentlyelected not to recognize the Regulatory Deferral Balances in its previous GAAP, the requirementof IndAS 114 does not apply to the Company.

(d) Impairment of Trade receivables2

The Company estimates the credit allowance as per practical expedient based on historicalcredit loss experience as enumerated in Note-6.

(e) Impairment of Investments2

At the end of each reporting period, the Company reviews the carrying amounts of its investmentswhen there is indication for impairment. If the recoverable amount is less than its carryingamount, impairment loss is accounted for.


141


(f) Deferred Tax Assets2

Deferred Tax Assets (DTA) are recognised for unused tax losses / credits to the extent that it isprobable that taxable profit will be available against which the losses can be utilised. Managementjudgement is required to determine the amount of deferred tax assets that can be recognised,based upon the likely timing and the level of future taxable profits together with future taxplanning strategies.

(g) Defined Benefit Obligation (DBO) 2

Management's estimate of Defined Benefit Obligation (DBO) is based on a number of criticalunderlying assumptions such as standard rates of inflation, medical cost trends, mortality,discount rate and anticipation of future salary increases. Variation in these assumptions maysignificantly impact the Defined Benefit Obligation amount and the annual defined benefitexpenses.

(h) Contingent Liabilities2

In the normal course of business, Contingent Liabilities may arise from litigation and otherclaims against the Company. Potential liabilities that are possible but not probable of crystallizingor are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities aredisclosed in the Notes but are not recognised. Potential liabilities that are remote are neitherrecognized nor disclosed as contingent liability. The management decides whether the mattersneeds to be classified as 'remote', 'possible' or 'probable' based on expert advice, past judgments,experiences etc.

1 Critical Accounting Judgments

2 Key Sources of Estimation uncertainty


142


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143


NOTES TO THE FINANCIAL STATEMENTS

3 Investments

Particulars As at31st March, 2019

As at31st March, 2020

Investment in Equity InstrumentsInvestment in Subsidiary Companies (Un-quoted) (at cost)

231,90,64,356 (31st March 2019: 212,77,98,823) Equity Shares of 10/-each in Gujarat State Electricity Corporation Ltd.(GSECL), fully paid-up. 5,78,792.29 5,14,808.9575,44,51,865 (31st March 2019: 71,17,44,788) Equity Shares of 10/- each inGujarat Energy Transmission Corp.Ltd. (GETCO), fully paid-up. 4,01,378.32 3,64,811.65 44,11,31,395 (31st March 2019: 40,99,65,078) Equity Shares of

10/- each in Dakshin Gujarat Vij Company Ltd. (DGVCL), fully paid-up. 1,92,266.75 1,64,031.6644,53,21,532 (31st March 2019: 42,55,06,616) Equity Shares of

10/- each in Madhya Gujarat Vij Company Ltd. (MGVCL), fully paid-up. 1,82,239.07 1,66,197.68734,33,24,585 (31st March 2019: 631,62,59,458) Equity Shares of

10/- each in Paschim Gujarat Vij Company Ltd. (PGVCL), fully paid-up. 9,05,839.73 7,47,669.5859,25,94,466 (31st March 2019: 55,63,30,800) Equity Shares of

10/- each in Uttar Gujarat Vij Company Ltd. (UGVCL), fully paid-up. 2,93,433.52 2,65,614.43 Total (A) 25,53,949.68 22,23,133.95

Investment in Associate Company (Quoted) (at cost)3,83,84,397 (31st March 2019: 3,83,84,397)Equity Shares of 10/- each in GujaratIndustries Power Co. Ltd. (GIPCL), fully paid-up. 9,092.35 9,092.35 Total (B) 9,092.35 9,092.35

Investment in Other Companies (at Fair Value through OtherComprehensive Income)

Quoted, Non-Trade1,13,50,000 (31st March 2019: 1,13,50,000) Equity Shares of 10/- each inGujarat State Petronet Ltd. (GSPL), fully paid-up. 19,573.08 21,479.882,66,445 (31st March 2019: 2,66,445) Equity Shares of 2/-each in Gujarat Gas Co. Ltd. (GGCL), fully paid-up. 615.09 394.61

Un-quoted, Non-Trade19,30,013 (31st March 2019: 19,30,013) Equity Shares of 100/- each inGujarat Power Corporation Ltd. (GPCL), fully paid-up. 4,014.10 4,426.06 2,90,03,636 (31st March 2019: 2,90,03,636) Equity Shares of 10/- each inGujarat State Energy Generation Ltd. (GSEG), fully paid-up. 2,829.99 4,285.73 25,00,000 (31st March 2019: 25,00,000) Equity Shares of 10/- each inPower Exchange of India Ltd. (PXIL), fully paid-up 100.28 -

Total (C) 27,132.54 30,586.26

Total 25,90,174.57 22,62,812.56

( in Lakhs)


144


Aggregate Cost of Unquoted investments 25,59,120.09 22,28,304.36Aggregate Cost of Quoted investment 10,232.35 10,232.35Aggregate Market Value of Quoted investment 39,341.98 49,165.79

B. The latest Audited Financials of Gujarat Power Company Limited (GPCL) available with the Companyis for 31st March 2019. For calculation of Fair Value as at 31st March 2020 the Company has consideredlatest available Audited Balance Sheet of GPCL i.e. for 31st March 2019.

Gujarat State Electricity Corporation Ltd. India 100.00% 100.00%Gujarat Energy Transmission Corporation Ltd. India 100.00% 98.27%Dakshin Gujarat Vij Company Ltd. India 100.00% 100.00%Madhya Gujarat Vij Company Ltd. India 100.00% 100.00%Paschim Gujarat Vij Company Ltd. India 100.00% 100.00%Uttar Gujarat Vij Company Ltd. India 100.00% 100.00%

Name of CompanyPlace of

Incorporation andprincipal place of

business

C. Details of SubsidiariesProportion of ownership interest/

voting rights held by the Company As at 31st

March, 2020 As at 31st

March, 2019

TotalSharePremiumSubsidiary Companies: Share

Capital

Gujarat State Electricity Corporation Ltd. 2,31,906.44 3,46,885.85 5,78,792.29Gujarat Energy Transmission Corporation Ltd. 75,445.19 3,25,933.13 4,01,378.32Dakshin Gujarat Vij Company Ltd. 44,113.14 1,48,153.61 1,92,266.75Madhya Gujarat Vij Company Ltd. 44,532.15 1,37,706.92 1,82,239.07Paschim Gujarat Vij Company Ltd. 7,34,332.46 1,71,507.27 9,05,839.73Uttar Gujarat Vij Company Ltd. 59,259.45 2,34,174.07 2,93,433.52 Sub-Total 11,89,588.82 13,64,360.86 25,53,949.68Associate Company:Gujarat Industries Power Co.Ltd. 3,838.44 5,253.91 9,092.35Other Companies:Gujarat State Petronet Ltd. 1,135.00 - 1,135.00Gujarat Power Corporation Ltd. 1,930.01 - 1,930.01Gujarat State Energy Generation Ltd. 2,900.36 90.04 2,990.40Gujarat Gas Co. Ltd. 5.00 - 5.00Power Exchange Of India Ltd. 250.00 - 250.00

Sub-Total 6,220.38 90.04 6,310.41

Total Investment 11,99,647.64 13,69,704.81 25,69,352.45

A.


145


E. Details of Associate

D. Government of Gujarat (GOG) which held stake in GETCO of 1,25,00,000 equity shares aggregatingto 1250.00 Lakhs of face value of equity share capital has been transferred to the Company, tomake GETCO a wholly owned subsidiary of the Company. The Company has issued it’s own EquityShares as consideration against the stake transferred by GOG at a determined fair value.

F. The Net Asset Value of Power Exchange Of India Ltd. (PXIL) for the year ended 31st March, 2020is positive (Negative for 31st March, 2019) and hence the Fair Value of such investment is 100.28Lakhs for the year ended 31st March, 2020 (Nil for 31st March, 2019).

Name of Company

Place ofIncorporationand principal

place ofbusiness

Proportion of ownership interest/ votingrights held by the Company (includesshareholding through Subsidiary)

As at 31st


March, 2019Gujarat Industries Power Company Ltd. India 26.84% 26.84%

4. Loan

A. Loans to staff are secured by way of hypothecation of house/ four wheeler/ two wheeler for whichthe loans have been given.

5. Other Financial Assets

As at 31st


March, 2019Particulars

Secured Considered GoodLoans to Staff 113.63 144.44 Total 113.63 144.44

As at 31st



Secured Considered GoodInterest Accrued But Not Due on Staff Loans 161.74 179.48Unsecured Considered GoodDeposit with Others 1,293.76 1,293.16 Total 1,455.50 1,472.64

( in Lakhs)

( in Lakhs)

6. Trade Receivables As at 31st



Unsecured Considered GoodTrade Receivables 56.08 3,114.52 Total 56.08 3,114.52

( in Lakhs)


146


6.1 The age of receivables at the end of the reporting period is as follows:

Particulars

Less than or equal to 6 months 56.08 3,114.52More than 6 months but less than or equal to 1 Year - -More than one Year - - Total 56.08 3,114.52

As at 31st


March, 2019

6.2 The Company assesses expected credit loss to be provided for from its customers by using apractical expedient as permitted under Ind AS 109 i.e. expected credit loss allowance as computedbased on historical credit loss experience and the ageing of the receivable balances.

6.3 Generally, the credit period on sale of electrical energy is upto 60 days. Delay Payment Surchargeis charged at agreed rate as per contractual terms on the overdue balance.

7. Cash and Cash Equivalents

8. Bank Balances other than mentioned in cash and cash equivalents

As at 31st


March, 2019

Balances with Banks 1,978.58 1.35Cash on hand 1.38 2.19 Total 1,979.96 3.54

( in Lakhs)

( in Lakhs)

Particulars

( in Lakhs) As at 31st


March, 2019

Fixed Deposit with Bank (with maturity more than 3 months) 54.22 51.42 Total 54.22 51.42

Particulars

As at 31st


March, 2019Loans and Advances to EmployeesSecured Considered GoodLoans & Advances to Staff - Interest Bearing* 30.79 38.83Unsecured considered goodOther Loans and Advances to Staff 11.97 6.29 Total 42.76 45.12

9. Loans

Particulars

( in Lakhs)


A. Deposir with Bank represents Fixed Deposit kept in Allahabad Bank on behalf of Bal Urja RakshakDal 54.22 Lakhs.

147


As at 31st



Unsecured Considered GoodInterest Accrued But Not Due on Staff Loans & others 488.96 471.14Recoverable from Staff 6.75 1.44Recoverable from Others 28.47 6.63Inter Company Receivable 10,29,763.42 5,21,430.47Subsidy Receivable from Government (Refer Note No. 43) 2,07,842.39 3,24,588.53Loan to Others (Refer Note No. 46) 655.73 655.73Deposits 740.50 772.90Receivable from Gujarat Energy Training & Research Institute (GETRI) 345.59 38.37 Total 12,39,871.80 8,47,965.21

10. Other Financial Assets

A. *Loans to Staff are secured by way of hypothecation of house/ four wheeler/ two wheeler for whichthe loans have been given.

( in Lakhs)

As at 31st



Current Tax AssetsTax Refund Receivable - 41,426.47Current Tax LiabilityIncome Tax Payable - -37,383.16

Total - 4,043.31

11. Current Tax Assets (Net) ( in Lakhs)

As at 31st



Unsecured Considered GoodPrepaid Expenses 592.80 608.57Advances to Vendors 858.20 858.20Electricity Duty Recovered in Advance by Govt. of Gujarat 57,262.25 7,448.58Assets not in use 1.81 2.17Advance to IPP against Power Purchase 6,800.00 4,200.00Gratuity Asset (Refer Note No.35E) 7,873.52 -

Total 73,388.58 13,117.53

12. Other Current Assets ( in Lakhs)


148


As at 31st



Share CapitalEquity Share CapitalAuthorised Share Capital3000,00,00,000 (31st March 2019: 3000,00,00,000)Equity Shares of 10/- each 30,00,000.00 30,00,000.00Issued Share Capital*2350,57,58,495 (31st March 2019: 2016,98,31,795) of 10/- each 23,50,575.85 20,16,983.18Subscribed & Paid up Share Capital*2234,78,11,995 (31st March 2019: 1977,22,22,095) of 10/- each fully paid 22,34,781.20 19,77,222.21

Total 22,34,781.20 19,77,222.21

( in Lakhs)

13. Equity Share Capital

A. Equity Share Capital consist of the following:

B. Reconciliation of number of shares outstanding at the beginning and at the end ofreporting period is as under :

C. Shares in the Company held by Shareholders holding more than 5% is as under:

As at 1st April, 2018 16,22,75,49,895 16,22,754.99Additions/(Reductions) 3,54,46,72,200 3,54,467.22As at 31st March, 2019 19,77,22,22,095 19,77,222.21As at 1st April, 2019 19,77,22,22,095 19,77,222.21Additions/(Reductions) 2,57,55,89,900 2,57,558.99As at 31st March, 2020 22,34,78,11,995 22,34,781.20

Share Capital( in Lakhs) No. of SharesParticulars

Governor of Gujarat 22,34,78,11,995 100.00% No. of SharesParticulars

As at 31st March, 2020Extent of Holding

Governor of Gujarat 19,77,22,22,095 100.00% No. of SharesParticulars

As at 31st March, 2019Extent of Holding


149


D. Shares issued for consideration otherwise than for cash

The Company has issued 5,00,00,000 fully paid up Equity Shares of 10 each to its shareholder -Government of Gujarat amounting to 5000 Lakhs during the year, as consideration for the transfer ofstake held by GOG in GETCO. Refer Note No. 3D for additional details.

E. Rights, preferences and restrictions attached to shares :

The Company has only one class of equity shares. For all matters submitted to vote on a poll in ashareholders’ meeting of the Company every holder of an equity share as reflected in the records ofthe Company on the date of the shareholders’ meeting shall have voting right in proportion to hisshare in the paid up Equity Share Capital of the Company. Any dividend declared by the companyshall be paid to each holder of Equity shares in proportion to the number of shares held to total equityshares outstanding as on that date. In the event of liquidation of the Company, all preferential amountsif any shall be discharged by the Company. The remaining assets of the Company shall be distributedto the holders of equity shares in proportion to the number of shares held to the total equity sharesoutstanding as on that date.

14. Other Equity

A. Other Equity consist of the following:

As at 31st



( in Lakhs)

Share Application Money pending allotment 1,15,794.65 39,760.97Retained Earnings 38,638.37 27,960.53Other Comprehensive Income 20,822.12 24,275.85 Total 1,75,255.15 91,997.35

As at 31st



( in Lakhs)

Share Application Money pending allotment Opening Balance 39,760.97 1,17,518.99Add: Increase during the year 1,15,794.65 39,760.97Less: Shares Issued (39,760.97) (1,17,518.99) (A) 1,15,794.65 39,760.97Retained Earnings Opening Balance 27,960.53 25,178.63Add: Net profit after tax transferred from Statement of Profit & Loss 10,639.58 2,800.93Add: Other Comprehensive Income arising from remeasurement ofdefined benefit obligation 38.26 (19.03) (B) 38,638.37 27,960.53

B. Particulars relating to Other Equity :


150


Other Comprehensive IncomeOpening Balance 24,275.85 21,669.49Add: Increase / Decrease during the year (3,453.73) 2,606.36 (C) 20,822.12 24,275.85

Total 1,75,255.15 91,997.35

a. Share Application Money pending AllotmentThe Company had received advance from the existing shareholder - the Governor of Gujarat forequity share subscription on a rights basis. This amount has been approved for share allotment onrights basis in March 2020 and also alloted subsequent to the year end, in April 2020.

15. Defferred Government Grants

As at 31st



( in Lakhs)

Government Grants, Subsidies towards Capital Assets 86.50 11.84 Total 86.50 11.84

a. Particulars relating to Deferred Government Grants, Subsidies and Contributions

As at 31st



( in Lakhs)

Government Grants, Subsidies towards Capital AssetsOpening Balance 11.84 14.14Add : Received during the year 78.28 -Less : Transferred to Statement of Profit and Loss 3.62 2.29 Closing Balance 86.50 11.84

16. Borrowings

As at 31st



( in Lakhs)

Loans from Related Party - Govt. of GujaratUnsecuredLoan for Power Purchase 8,750.00 9,100.00Loan from Asian Development Bank (No.1803) 1,883.96 3,466.23 Total 10,633.96 12,566.23

The Government Grants received are in capital nature of Research & Development related Expendituresof R&D Cell. There are no unfulfilled conditions or contingencies attached to these grants.


151


A Maturity Profile of Secured & Unsecured Loans

Particulars FY 2023-24

onwardsupto last

instalmentFY 2022-23FY 2020-21 FY 2021-22

Govt. of Gujarata. Loan for Power Purchase (10% p.a.—Repayment

in Yearly instalment of 3,50,00,000/- uptoFY 2046-47) (26 Nos. of Instalments Due afterthe Balance Sheet Date) 350.00 350.00 350.00 8,050.00

b. ADB—1803 (11.36% p.a.—Repayment in Yearlyinstalment upto FY 2023-24) (4 Nos. ofInstalments Due after the Balance Sheet Date) 1,582.26 627.99 627.99 627.99

Total 1,932.26 977.99 977.99 8,677.99

( in Lakhs)

B The Company has not executed the Transfer Agreements in respect of following loans availed fromBanks, Financial Institutions, etc. though the loans are apportioned amongst all the SubsidiaryCompanies:

As at 31st



( in Lakhs)

Govt. of Gujarat 17,584.57 21,856.41 Total 17,584.57 21,856.41

17. Trade Payable

As at 31st



( in Lakhs)

Micro and Small Enterprises (Refer Note 22A)OthersAmount owing to Licensees 85.29 85.29

Total 85.29 85.29

18. Other Financial Liabilities

As at 31st



( in Lakhs)

Staff Voluntary Retirement cum Death Benefit 779.37 731.84

Total 779.37 731.84


152


19. Long Term Provisions

As at 31st



( in Lakhs)

Provision for Employee BenefitsGratuity - -Provision for Leave Encashment 1,284.40 1,168.53 Total 1,284.40 1,168.53

20. Deferred Tax Liabilities (Net)

The following is the analysis of Deferred Tax Assets/(Liabilities) presented in theBalance Sheet:

As at 31st



( in Lakhs)

Deferred Tax Assets - -Deferred Tax Liabilities - - Total - -

Deferred Tax Asset / Liability is worked out as under :2019-20

Particulars ClosingBalance

Recognizedin Other

ComprehensiveIncome

OpeningBalance

Recognized inprofit and loss

Deferred Tax Liability on account of:Depreciation (862.18) (71.76) - (933.95)Fair value of Investment at FVTOCI - - - -Deferred Tax Asset on account of:Employee Benefits 467.20 26.23 - 493.43Carried forward of unused Tax Losses - - - -Carried forward of unused Tax Credits 11,287.79 (3,542.68) - 7,745.11

Net Deferred Tax Asset/ (Liability) 10,892.81 (3,588.21) - 7,304.60

( in Lakhs)


153


Particulars ClosingBalance

Recognizedin Other

ComprehensiveIncome

OpeningBalance


Deferred Tax Liability on account of:Depreciation (689.75) (172.44) - (862.18)Fair value of Investment at FVTOCI - - - -Deferred Tax Asset on account of:Employee Benefits 503.53 (36.32) - 467.20Carried forward of unused Tax Losses - - - -Carried forward of unused Tax Credits 11,704.03 (416.23) - 11,287.79

Net Deferred Tax Asset/ (Liability) 11,517.80 (624.99) - 10,892.81

Amounts recognised in Balance Sheet(Refer note A below) - - - -

( in Lakhs)2018-19

A. Due to uncertainty about taxable income in foreseeable future, Deferred Tax Assets has been restrictedto the extent of Deferred Tax Liabilities.

21. Short Term Borrowings

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

22. Trade Payables

As at 31st



( in Lakhs)

Loans repayable on DemandSecuredCash Credit From Banks 22,803.99 25,454.94 Total 22,803.99 25,454.94

As at 31st



( in Lakhs)

Micro and Small EnterprisesOthers - 0.13OthersLiability for Purchase of Power 9,79,641.10 6,11,313.31Others 2,328.31 484.23

Total 9,81,969.40 6,11,797.67


154


Principal amount and the interest due thereon remaining unpaid toany supplier at the end of each accounting year - 0.13

Interest paid by the Company in terms of Section 16 of Micro,Small and Medium Enterprises Development Act, 2006, alongwith the amount of the payment made to the supplier beyond theappointed day during each accounting year; - -

Interest due and payable for the period of delay in makingpayment (which have been paid but beyond the appointed dayduring the year) but without adding the interest specified underMicro, Small and Medium Enterprises Development Act, 2006 - -

Interest accrued and remaining unpaid as at end of eachaccounting year - -

Further interest remaining due and payable even in thesucceeding years, until such date when the interest dues asabove are actually paid to the small enterprise - -

A The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and MediumEnterprises Development Act, 2006” has been determined to the extent such parties have beenidentified on the basis of information available with the Company. The disclosures relating to Microand Small Enterprises are as below:

As at 31st


March, 2019Trade Payables - Total outstanding dues of Micro & SmallEnterprises

B No interest during the year has been paid to Micro and Small Enterprise on delayed payments. FurtherInterest Accrued during the year and remaining unpaid is not provided in the books as the managementis of the opinion that due to contractual terms they will not be required to pay the same.

( in Lakhs)


155


23 Other Financial Liability

As at 31st



( in Lakhs)

Current maturities of Long-term Debt:Unsecured:Govt. of Gujarat (Related Party)Loan for Power Purchase 350.00 350.00Loan from Asian Development Bank (No.1803) 1,582.26 1,582.26Interest Accrued But Not Due on Loans 191.52 284.13Interest Accrued and Due on Loans from Banks - 2.33Liability for O & M Supplies / Works 41.97 114.21Liability for Capital Supplies / Works 126.77 253.54Staff Related Liabilities 47.53 2.27Staff Retirement cum Death Benefit Scheme 10.99 15.56Unclaimed amount relating to Bonds 261.80 264.30Inter Company Payable 3,48,356.61 2,75,037.17Deposits & Retentions from Suppliers / Contractors (Refer Note No. 47) 1,21,145.52 1,20,786.66Deposits for Electrification & Service connection 10.11 10.11Outstanding liability for expenses 12,070.42 871.43Grants Unallocated 872.54 91.35Corpus Fund of Bal Urja Rakshak Dal 55.32 52.51Board of Trustees----CPF 752.29 502.37Other Liability 899.92 12.61Staff Welfare Schemes 4.34 4.47 Total 4,86,779.92 4,00,237.29

24 Other Current Liability

As at 31st



( in Lakhs)

Statutory Liabilities 34.93 46.49Tax on Electricity Duty payable to State Govt. 1.25 1.25

Total 36.18 47.74


156


25 Short Term Provisions

As at 31st



( in Lakhs)

Provision for Employee BenefitsProvision for Gratuity - 16,050.34Provision for Leave Encashment 129.93 152.34 Total 129.93 16,202.68

26 Current Tax Liabilities (net)

As at 31st



( in Lakhs)

Current Tax LiabilityIncome Tax Payable 46,837.03 -Current Tax AssetsTax Refund Receivable -46,023.81 -

Total 813.21 -

27 Revenue from Operations

For the yearended 31st

March, 2020



( in Lakhs)

Income from Operating ActivitySale of Power to Subsidiaries :Dakshin Gujarat Vij Company Ltd (DGVCL) 12,89,831.32 12,00,168.22Madhya Gujarat Vij Company Ltd (MGVCL) 5,40,410.96 5,34,019.67Paschim Gujarat Vij Company Ltd (PGVCL) 15,47,243.17 15,41,798.68Uttar Gujarat Vij Company Ltd (UGVCL) 11,75,450.03 11,21,815.07

Sub Total 45,52,935.48 43,97,801.63

Sale of Power to Others:Sale of Power through Power Exchanges & Bilateral Agreements 16,306.89 10,812.79

Sub Total 16,306.89 10,812.79Total Revenue from Sale of Power to Licensees,Subsidiaries and Others 45,69,242.37 44,08,614.43


157


28 Other Income ( in Lakhs)


March, 2020



Interest IncomeInterest on Staff Loans and Advances 18.38 22.48Interest on Advances to Others 10.03 267.98Interest Income from Fixed Deposits - 393.21Dividend Income- From Associate 1,113.15 1,036.38- From other Investments 229.66 200.76Other Non Operating IncomeGrants received for R & D Expenses (Refer Note No.42) 156.42 178.16Deferred Income (Refer Note No.42) 3.62 2.29Penalties received from Suppliers (Net of Refund) 52.11 36.88Miscellaneous Income* 209.04 2,060.51

Total 1,792.42 4,198.66

* None of the items individually account for more than 1% of total revenue.

29 Purchase of Power ( in Lakhs)


March, 2020



Purchase of PowerFrom Central SectorNuclear Power Corporation of India Ltd. 1,51,189.34 90,612.24NTPC Ltd. 7,30,527.24 7,17,985.43Sardar Sarovar Narmada Nigam Ltd 13,097.67 1,862.13

Sub Total 8,94,814.26 8,10,459.80

Income from Other Operating ActivityRebate (Cash Discount) for Prompt Payment 68,544.99 77,927.21Liquidated Damages 243.55 178.62CDM Benefit from Renewable Energy Sources 84.04 33.14

Total 46,38,114.95 44,86,753.40


158


From Private SectorCLP India Pvt Ltd. - 43,915.94Essar (Vadinar) Ltd. 1,44,840.87 -ACB India Ltd. 26,346.07 30,999.53Adani Power Ltd. 4,22,558.82 4,11,479.94Coastal Gujarat Pvt. Ltd. 3,39,037.69 3,35,605.25 Sub Total 9,32,783.45 8,22,000.67From State SectorGujarat Industries Power Company Ltd. 1,00,976.83 98,180.66Gujarat State Energy Generation Ltd. (Hazira) 42,342.00 45,748.59Gujarat Mineral Development Corporation (GMDC) 13,422.55 21,265.11Gujarat State Electricity Corporation Ltd. 9,40,693.24 11,44,910.81GPPC Pipavav 49,566.13 61,593.39

Sub Total 11,47,000.75 13,71,698.56

From OtherWind Farms 3,05,405.36 2,74,106.96Purchase of Solar Power 2,03,179.96 1,97,495.85Purchase of Power from Renewable Sources 13,740.84 10,146.70Purchase of Power from Non-Renewable Sources 3,64,441.00 63,411.06Captive Power Plants 126.88 666.14Power Exchange of India Ltd. 35.80 2,489.98India Energy Exchange 61,564.93 2,97,426.82Short Term Purchase of Power 1,06,211.92 1,55,658.72Purchase of Power from DISCOMs 7,418.57 191.01

Sub Total 10,62,125.26 10,01,593.22Wheeling / Transmission Charges:Power Grid Corporation Ltd. 2,44,269.26 2,06,187.15Gujarat Energy Transmission Corporation Ltd. 3,18,655.76 2,64,559.21

Sub Total 5,62,925.02 4,70,746.37

Total 45,99,648.73 44,76,498.62


159


(a) Defined contribution to Provident Fund, Employees Pension Scheme and EmployeesDeath Linked Insurance: ( in Lakhs)


March, 2020



EDLI Admn. Charges 0.02 0.02Company's Contribution to Provident Fund 221.00 255.80CPF Inspection & Audit Charges 4.00 4.55Pension Contribution for Company's Employees on deputation 20.59 33.02Company's Contribution to Pension Fund 34.43 33.80

Total 280.05 327.20

31 Finance Cost ( in Lakhs)


March, 2020



Interest ExpenseInterest on State Government Loans 1,420.65 1,640.87Interest on Cash Credit and Working Capital - 0.67Interest on Other loans 52.31 49.47Discount to Consumers for Timely Payment of Bills 52.96 145.86Other Borrowing CostBank Charges and Commission 144.11 173.93Others 9.97 -

Total 1,680.01 2,010.81

( in Lakhs)


March, 2020



Salaries and Allowances 3,024.40 2,750.80Contribution to PF Trust 280.02 327.18Staff Welfare Expenses 533.13 491.11Retirement and other Benefits (Refer Note No.48) 10,990.16 40.24

Total 14,827.71 3,609.33

30 Employee Benefit Expenses


160


32.1 During the year, an expenditure of 781.85 Lakhs (Previous year 235.16 lakhs) has been incurredtowards Energy Conservation and 79.71 Lakhs (Previous year NIL) towards Surya Gujarat Scheme,both of which has been set off against the grant received from Govt. of Gujarat for this purpose.* None of the items individually account for more than 1% of total revenue.

32 Other Expenses ( in Lakhs)


March, 2020



Repairs & MaintenanceOffice Equipments 112.76 3,167.81Others 16.24 10.48Administrative & General ExpensesRent, Rates and Taxes 260.00 409.23Insurance 5.75 7.61Telephone & Postage Expenses 13.02 16.52Audit Fees 8.85 9.44Travelling & Conveyance 80.94 90.25Printing & Stationery 28.05 34.32Expenses on Computer Billing & EDP Charges 19.18 14.51Advertisement 51.14 124.46Electricity Charges - 0.04R & D Expenses (Refer Note No. 42) 156.42 178.16Legal & Professional Fees 628.07 470.60Donation to CM Relief Fund 74.64 -Expenditure on Training to Staff 3.00 3.48Loss on Sale of Assets (Net) 0.37 3.44Corporate Social Expenditure (Refer Note No.40) 137.25 37.35Expenses for Energy Conservation - 15.99Miscellaneous Losses & Write-offs - 2.46Miscellaneous Expenses* 33.64 27.33Other Administration & General Expenses 1,376.43 53.28

Total 3,005.75 4,676.77


161


33 Tax Expense ( in Lakhs)


March, 2020



Current Tax - Current year 3,530.00 770.00 - Earlier years 5,959.96 -Deferred Tax (Refer Note 20) - -

Total 9,489.96 770.00

33.1 Reconciliation of Current Tax ( in Lakhs)


March, 2020



Profit Before Tax 20,129.54 3,570.93"Current Tax expense calculated using MAT tax rate at 17.47%(Previous year - 21.55%) 3,517.03 769.49Add:Other Comprehensive Expense 6.69 (4.10)Adjustment of tax on prior period - -Others 6.29 4.61Current Tax Expense 3,530.00 770.00

The base tax rate used for the year ended 31st March, 2020 and year ended 31st March, 2019 reconciliationsgiven above is at the MAT tax rate of 17.47% (Previous Year: 21.55%) payable by corporate entities in Indiaon taxable book profits under the Indian Tax Law.

On 20th September, 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government of India

32.2 Auditor's Remuneration


March, 2020



Statutory Audit Fees 7.50 7.50Taxes on Statutory Audit Fees 1.35 1.35

Total 8.85 8.85

Figures for FY 2018-19 includes 0.59 Lakhs (incl. Taxes) paid for FY 2017-18.

( in Lakhs)


162


34 Earnings per Equity share ( in Lakhs)


March, 2020



Profit After Tax for the year attributable to equity shareholders 10,639.58 2,800.93Weighted average number of Equity shares Basic 21,17,67,82,287 17,87,88,00,487

Diluted 21,29,30,53,953 17,89,35,76,477Basic and Diluted earnings per equity shares ( ) Basic 0.05 0.02

Diluted 0.05 0.02Face value per equity share ( ) 10.00 10.00

35 Employee Benefit Plans

A Defined Contribution Plans:

The Company has certain defined Contribution Plans. The Company makes contribution towardsEmployees’ Provident Fund, Employees’ Pension Scheme and Employees’ Deposit Linked InsuranceScheme as per the provisions of Employees Provident Fund & Misc. Provisions Act, 1952. Contributionsare made at specified percentage of salary as per regulations. PF contributions are made to a registeredProvident Fund Trust administered by Employees Provident Fund Organisation (EPFO). The obligationof the Company is limited to the amount contributed and it has no further contractual or any constructiveobligation. The expense recognised during the period towards Defined Contribution Plan is 280.05Lakhs (31st March 2019 : 327.20 Lakhs).

B Other Long Term Benefit PlanThe Company accounts for leave encashment on the basis of actuarial valuation carried out by Life

33.2 Unrecognised Deferred Tax Assets As at 31st



Unused Tax Losses - -Unused Tax Credits 7,745.11 11,287.79

inserted Section 115BAA in the Income Tax Act, 1961 which provides domestic companies a non-reversibleoption to pay corporate tax at reduced rates effective 01st April 2019 subject to certain conditions. However,the Company having a significant amount of MAT credit entitlement at its disposal, has not exercised theoption permitted under Section 115BAA. In view of the above, there is no impact of the new tax rate on thefinancial results for the year 2019-20.

( in Lakhs)


163


Insurance Corporation of India at each year end. Liability for the Current Year of 210.99 Lakhs (31st

March 2019 : 69.83 Lakhs) has been charged to statement of Profit & Loss. Leave obligation as at31st March, 2020 and 31st March, 2019 is 1414.33 Lakhs and 1320.87 Lakhs respectively.

The Company has a Staff Voluntary Retirement-Cum-Death Benevolent Fund Scheme wherein anemployee can become a member voluntarily. A monthly contribution is to be made by the members.Upon retirement employee will be eligible to get an amount equivalent to his total “Contribution” alongwith simple interest at a specified rate from the date of joining the scheme or 10,000/- whichever ishigher. In case of death of an employee, the nominee of the member shall be eligible to get a determinedamount of compensation out of the fund, if the employee was the member of the scheme. The chargeto the statement of Profit and loss for the year ended is 42.97 Lakhs (31st March 2019 : 37.22Lakhs). The balance of such fund as at 31st March, 2020 and 31st March, 2019 is 790.37 Lakhs and

747.40 Lakhs.

C Defined Benefits Plan

Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees’who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuitypayable on retirement/termination is the employees’ last drawn basic salary per month computedproportionately for 15 days salary multiplied for the number of years of service. The Gratuity Plan isa funded plan and the Company makes contributions to LIC. The Company maintains a target level offunding to be done over a period of time based on estimations of expected gratuity payments.

The Company makes annual contribution to the gratuity scheme administered by the Life InsuranceCorporation of India through its Gratuity Trust. The liability in respect of plan is determined on thebasis of an actuarial valuation.

D Risk Exposure

These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest RateRisk and Salary Risk.

Investment Risk The Present value of the Defined Benefit Obligation is calculated using the discountrate determined by LIC of India as the fund is being managed under GratuityAssurance Plan.

Interest Risk A decrease in the interest rate will increase the plan liability while increase in interestrate will decrease the plan liability.

Salary Risk The present value of obligation is calculated by reference to future salary.


164


( in Lakhs)


March, 2020



I) Reconciliation in present value of obligations (PVO) -defined benefit obligation:Opening defined benefit obligation 1,959.43 2,016.73Current Service Cost 43.97 45.83Past service cost, including losses/(gains) on curtailments - -Interest Cost 142.06 151.25Remeasurement (gains)/Iosses:Actuarial gains and losses arising from changes infinancial assumptions & experience adjustments -6.66 8.83Benefits paid 201.33 263.22

Closing defined benefit obligation 1,937.46 1,959.43

Current obligation 201.08 288.10Non-Current obligation 1,736.39 1,671.33

II) Change in fair value of assets:Opening fair value of plan assets 1,943.29 1,970.24Expected return on plan assets 145.75 157.62Remeasurement gain (loss):Actuarial gains and losses including Excess Return on planassets (excluding amounts included in net interest expense) 31.60 -10.20Contributions by the employer 20.43 88.84Benefits paid 201.33 263.22Closing fair value of plan assets 1,939.73 1,943.29

The principal assumptions used for the purposes of the actuarial valuations were as follows:.


March, 2020



Expected Return on Plan Assets 7.50% 8.00%Rate of Discounting 7.25% 7.50%Rate of Salary Increase 10.00%Rate of Employee Turnover 1 to 3 % Depending on AgeMortality Rate During Employment LIC (2006-08) ultimateMortality Rate After Employment N.A.

Assumptions (Current Period)


165


III) Reconciliation of Present value of obligation and fairvalue of assets:Present value of funded defined benefit obligation 1,937.46 1,959.43Fair Value of plan assets at end of year 1,939.73 1,943.29Funded status Funded Funded

Net liability arising from defined benefit obligation -2.27 16.14

IV) Service CostCurrent Service cost 43.97 45.83Past service cost and (gain)/Ioss from settlements - -Net Interest expense -3.94 -6.41

Total Expenses to be recognised in P&L A/c 40.03 39.43

Components of defined benefit costs recognised in EmployeeBenefit expensesRemeasurement on the net defined benefit liability:Actuarial (gains) / losses arising from experience adjustments,changes in demographic assumptions and changes in financialassumptions including Excess Return on plan assets(excluding amounts included in net interest expense) -38.26 19.03

Total Expenses to be recognised in OCI -38.26 19.03

Total Expense (Provision for the Period) 1.77 58.46

V) Category of assets as at 31 st March:-Life Insurance Corporation 1,939.73 1,943.29

Total 1,939.73 1,943.29

On PlanLiabilities

On PlanAssetsExperience Adjustment

As on 31st March, 2020 -6.66As on 31st March, 2019 8.83As on 31st March, 2018 587.71As on 31st March, 2017 89.19As on 31st March, 2016 -41.26

Loss/(Gain) Loss/(Gain)


166


Sensitivity Analysis:

As at 31st


March, 2019Significant actuarial assumptions

( in Lakhs)

Discount Rate- Impact due to increase of 50 basis points -72.90 -76.74- Impact due to decrease of 50 basis points 76.87 81.86Salary increase- Impact due to increase of 50 basis points 76.78 81.36- Impact due to decrease of 50 basis points -73.47 -76.97

The sensitivity analysis presented above may not be representative of the actual change in the definedbenefit obligation as it is unlikely that the change in assumptions would occur in isolation of oneanother as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefitobligation has been calculated using the projected unit credit method at the end of the reportingperiod, which is the same as that applied in calculating the defined benefit obligation liability recognisedin the balance sheet.

E GEB Employees’ Group Gratuity Trust (“the Trust”) is an exempted Gratuity Trust under the IncomeTax Act, 1961 established to manage the Gratuity obligations of the employees of GUVNL and itsSubsidiary Companies. GUVNL, the Holding Company is managing the same for and on behalf ofitself and its six Subsidiary Companies. The Trust has an arrangement with M/s. Life InsuranceCorporation of India (LIC) for the fund management based on actuarial determination of liability andthe funds to be contributed.

Given the above structure and arrangement among GUVNL Group Companies, the overall Gratuity

Maturity Analysis of Projected Benefit Obligation are as under:

As at 31st



( in Lakhs)

Less than 1 year 201.08 288.10One to Three Years 199.55 321.92Three to Five Years 335.93 236.07More than Five Years 1,200.90 1,113.34

Total 1,937.46 1,959.43


167


As at 31st


March, 2019 Company pertaining to:

( in Lakhs)

Gujarat Urja Vikas Nigam Limited 2.27 (16.14)Gujarat State Electricity Corporation Limited 589.36 (671.97)Gujarat Energy Transmission Corporation Limited 1,786.49 (3,382.86)Dakshin Gujarat Vij Company Limited 1,004.15 (2,087.15)Madhya Gujarat Vij Company Limited 1,032.50 (2,126.68)Paschim Gujarat Vij Company Limited 2,126.04 (4,740.72)Uttar Gujarat Vij Company Limited 1,332.71 (3,024.83)

Total 7,873.52 (16,050.34)

Asset / (Liability) - Net

36 Operating Segment

A The Company’s operations fall under single segment namely “Purchase and Sale of Power”, takinginto account the different risks and returns, the organization structure and the internal reporting systems.

B Information about major customers

Company’s significant revenues (more than 95%) are derived from sales to Subsidiary DistributionCompany. The total sales to such companies amounted to 45,52,935.48 Lakhs in 2019-20 and

43,97,801.63 Lakhs in 2018-19.

C Information about geographical areas:

Segment revenue from “Sale of Power” represents revenue generated from Subsidiary and externalcustomers which is fully attributable to the Company’s Country of domicile i.e. India.All assets are located in the Company’s Country of domicile.

D Information about products and services:

The Company derives revenue from sale of power. The information about revenues from Subsidiaryand external customers about each product is disclosed in Note No. 27 of the Financial Statements.

Liability or Asset (as the case may be) of the GUVNL Group, is reflected in GUVNL Books. Theindividual subsidiary Company(s) reflect the expense in its books and the Liability / Asset to / fromGUVNL, given the above arrangement alongwith the disclosures in compliance with the applicableInd AS 119 – Employee Benefits.

The following is the position of Gratuity related Asset / Liability reflected in the books of GUVNL, aspertaining to individual companies:


168


Gearing RatioThe gearing ratio at end of the reporting period is as follows:

As at 31st



( in Lakhs)

Debt 12,566.23 14,498.49Total Equity 24,10,036.35 20,69,219.56Debt to Equity Ratio 0.01 0.01

1. Debt is defined as all Long Term Debt outstanding + Current Maturity outstanding for such LongTerm Debt.

2. Equity is defined as Equity Share Capital + Other Equity

B Categories of Financial Instruments

As at 31st



( in Lakhs)

Financial AssetsMeasured at amortised cost(a) Trade and other receivables 56.08 3,114.52(b) Cash and cash equivalents 1,979.96 3.54(c) Other Bank balances 54.22 51.42(d) Loans 156.39 189.56(e) Other Financial Assets 12,41,327.30 8,49,437.85Measured at cost(a) Investments in Equity Instruments of Subsidiaries andAssociates (designated on transition date) 25,63,042.03 22,32,226.30Measured at FVTOCI(a) Investments in Equity Instruments 27,132.54 30,586.26Financial LiabilitiesMeasured at amortised cost(a) Borrowings 33,437.95 38,021.17(b) Trade Payables 9,82,054.70 6,11,882.96(c) Other Financial Liabilities 4,87,559.29 4,00,969.14

37 Financial instruments DisclosureA Capital Management

The Company’s objective when managing capital is to:

1. Safeguard its ability to continue as going concern so that the Company is able to provide maximumreturn to shareholders and benefits for other stakeholders; and

2. Maintain an optimal capital structure to reduce the cost of capital.


169


C Financial Risk Management Objectives

The Company’s principal financial liabilities comprise of borrowings, trade and other payables. Themain purpose of these financial liabilities is to finance the Company’s operations, routine and capitalexpenditure. The Company’s principal financial assets include loans, advances, trade and otherreceivables and cash and cash equivalents that derive directly from its operations.The Company’s activities expose it to a variety of financial risks viz regulatory risk, interest rate risk,credit risk, liquidity risk etc. The Company’s primary focus is to foresee the unpredictability of financialmarkets and seek to minimize potential adverse effects on its financial performance. The Company’ssenior management oversees the management of these risks. It advises on financial risks andappropriate financial risk governance framework for the Company.

Regulatory Risk

The Company’s substantial operations are subject to regulatory interventions, introduction of newlaws and regulations including changes in competitive framework. The rapidly changing regulatorylandscape poses a risk to the Company.

Regulations are framed by Central / State Regulatory Commission as regard to Standard of Performancefor utilities, Terms & Conditions for determination of tariff, obligation of Renewable Energy purchase,grant of Open Access, Deviation Settlement Mechanism, Indian Electricity Grid Code / Gujarat GridCode, Power Market Regulations etc. Moreover, the State / Central Government are notifying variousguidelines and policy for growth of the sector. These Policies / Regulations are modified from time totime based on need and development in the sector. Hence the policy / regulation is not restricted onlyto compliance but also have implications for operational performance of utilities, Return on Equity,revenue, competitiveness, scope of supply as consumer of 1 MW and above have an option to selectthe supplier, ceiling on trading margins, Regulatory charges, market etc.To protect the interest of Utilities, State Utilities are actively participating in the process of framing ofRegulations. ARR is regularly filed & FPPPA is levied on quarterly basis for any increase/decrease inpower purchase cost.

Interest Rate Risk Management

Interest Rate Risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Company’s exposure to the risk of changesin market interest rates is negligible as primarily to the Company’s long-term debt obligations withfixed interest rates.

Credit Risk Management

Credit Risk arises from cash and cash equivalents and deposits with banks as well as customersincluding receivables. Credit risk management considers available reasonable and supportive forward-


170


looking information including indicators like external credit rating (as far as available), macro-economicinformation (such as regulatory changes, government directives, market interest rate).

Major customers, being the Group Companies, Credit risk is negligible.

Liquidity Risk Management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associatedwith its financial liabilities that are required to be settled by delivering cash or another financial asset.The Company manages liquidity risk by maintaining sufficient cash and cash equivalents includingbank deposits and availability of funding through an adequate amount of committed credit facilities tomeet the obligations when due. The management prepares annual budgets for detailed discussionand analysis of the nature and quality of the assumption, parameters etc. Daily and monthly cashflows are prepared, followed and monitored at senior levels to prevent undue loss of interest andutilize cash in an effective manner.

The following tables detail the Company’s remaining contractual maturity for its non-derivative financialliabilities with agreed repayment periods. The information included in the tables have been drawn upbased on the undiscounted cash flows of financial liabilities based on the earliest date on which theCompany can be required to pay. The tables include both interest and principal cash flows. Thecontractual maturity is based on the earliest date on which the Company may be required to pay.

Particulars TotalMore than 5years

Less than 1year

Between 1and 5 years

As at 31st March, 2020Non - Current Financial Liabilities

Borrowings - 3,283.96 7,350.00 10,633.96Trade Payables - - 85.29 85.29Other Financial Liabilities - 779.37 - 779.37

- 4,063.33 7,435.29 11,498.63Current Financial Liabilities

Borrowings 22,803.99 - - 22,803.99Trade Payables 9,81,969.40 - - 9,81,969.40Other Financial Liabilities 4,86,779.92 - - 4,86,779.92

14,91,553.31 - - 14,91,553.31

Total Financial Liabilities 14,91,553.31 4,063.33 7,435.29 15,03,051.94

( in Lakhs)


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As at 31st March, 2019Non - Current Financial Liabilities

Borrowings - 4,866.23 7,700.00 12,566.23Trade Payables - - 85.29 85.29Other Financial Liabilities - 731.84 - 731.84

- 5,598.07 7,785.29 13,383.37Current Financial Liabilities

Borrowings 25,454.94 - - 25,454.94Trade Payables 6,11,797.54 - - 6,11,797.54Other Financial Liabilities 4,00,237.29 - - 4,00,237.29

10,37,489.77 - - 10,37,489.77

Total Financial Liabilities 10,37,489.77 5,598.07 7,785.29 10,50,873.14

The Company has access to Committed Credit facilities as described below, of which 2,11,596.01 Lakhs(as at 31st March, 2019: 2,05,145.06 Lakhs) were unused at the end of the reporting period. The Companyexpects to meet its other obligations from operating cash flows and proceeds of maturing financial assetsSecured Committed Credit Facility, reviewed annually and payable at call:

As at 31st



( in Lakhs)

Amount used 22,803.99 25,454.94Amount unused 2,11,596.01 2,05,145.06

D Fair Value measurementFair Value of the Company’s financial assets on a recurring basis:

Some of the Company’s financial assets are measured at fair value at the end of each reportingperiod. The following table gives information about how the fair values of these financial assets aredetermined.Financial assets at fair value through other comprehensive income (FVTOCI)

Particulars

Investment in Equity 6,944.37 8,711.78 Level 3 Valuation techniques for which theInstruments (unquoted) lowest level input that is significant to the

fair value measurement is unobservableInvestment in Equity 20,188.16 21,874.48 Level 1 Quoted bid prices from Stock exchange-Instruments (quoted) NSE / BSE

Valuation technique(s)and key input(s)

Fair Valuehierarchy

31st

March,2019

31st

March,2020

Fair Value as at


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Financial Assets and Liabilities at amortised cost

The fair value of cash and cash equivalent, other bank balances, trade receivables, loans, otherfinancial assets, current borrowings, trade payables, other financial liabilities approximates their carryingamounts due to their short-term nature.

38 Disclosure under Indian Accounting Standard 36 – Impairment of Assets

In accordance with the Indian Accounting Standard (Ind AS-36) on “Impairment of Assets” the Companyduring the year carried out an exercise of identifying the assets that may have been impaired inrespect of cash generating unit in accordance with the said Indian Accounting Standard. Based onthe exercise, no impairment loss is required as at 31.03.2020.

39 Contingent Liabilities, Contingent Assets and commitments (to the extent not providedfor):

As at 31st



( in Lakhs)

1. Claims against the erstwhile GEB & the Company notacknowledged as debts:

I. Purchase 130.12 130.12II. Leasing Finance / Taking over of Licensee by erstrwhile GEB 1,577.00 1,731.53III. Power Purchase 91,480.00 64,391.00IV. Stamp Duty on mortgage deed for loans availed by erstwhile

GEB from LIC - 1,198.32V. Employees 680.50 730.50VI. Disputed demand of Income Tax against erstwhile GEB Not Ascertainable Not AscertainableVII. Disputed demand of Income Tax / GST (Service Tax)

against the Company 8,102.37 9,154.992. GuaranteesI. Corporate Guarantees given by the Company to Consortium

Banks for and on behalf of Subsidiary Companies -a. For Working Capital Facilities 4,89,590.00 4,89,590.00

II. Comfort Letter issued to GSFS by the Company for andon behalf of Subsidiary Companies:a. For Term Loans to Gujarat State Electricity Corporation Ltd. 76,101.85 97,907.41b. For Term Loans to Gujarat Energy Transmission Corporation Ltd. 1,67,176.47 1,81,705.88

3. Letters of Credit 1,64,285.97 1,39,364.00

Total 9,99,124.28 9,85,903.75


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In respect of the above, the expected outflow will be determined at the time of final resolution of thedispute. No reimbursement is expected.

B. A Contingent Asset is a possible asset that arises from past events and whose existence will beconfirmed only by the occurrence or non-occurrence of one or more uncertain future events not whollywithin the control of the entity. During the normal course of business, several unresolved claims arecurrently outstanding. The inflow of economic benefits, in respect of such claims cannot be measureddue to uncertainties that surround the related events and circumstances.

C. CommitmentsCapital Commitments:Estimated amount of contracts remaining to be executed on capital account:

As at 31st



( in Lakhs)

A. Capital CommitmentsEstimated amount of Contract remaining to the executed on capitalaccounts (Net of Advances) 356.21 Nil Total 356.21 Nil

40 CSR Expenditure ( in Lakhs)


March, 2020



CSR expenditure comprises of the following:a) Gross amount required to be spent by the Company during the year 211.89 277.23b) Amount spent during the year 137.25 37.35


TotalYet to bepaid in cash

In CashTotalYet to bepaid in cash

In Cash


Particulars

C) (i) Construction/ acquisition of

any asset 71.54 - 71.54 8.50 - 8.50 (ii) On purpose other

than (i) above 65.71 - 65.71 28.85 - 28.85

Total 137.25 - 137.25 37.35 - 37.35

( in Lakhs)


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d) For CSR amount which has remained unspent during the year, suitable reasons would beprovided in the Directors’ Report.

41. Quantitative information in respect of Purchase and Sale of Power

For the year ended 31st March, 2019 For the year ended 31st March, 2020

Particulars

Purchase of Power 93,862.41 45,99,648.73 98,695.19 44,76,498.62 Sale of Power 93,862.41 45,69,242.37 98,695.19 44,08,614.43

Amount MUs

42 Research & Development ExpenditureThe details of Revenue Expenditure & Capital Expenditure incurred on Research and Developmentis as under:


March, 2020



Capital Expenditure :Computers and related Equipments 78.28 -Less: Depreciation for the year 1.33 - Total Capital Expenditure (Net of Depreciation) : 76.95 -Revenue Expenditure :Employee Benefits 100.60 137.39Material Consumed 5.16 3.14Administrative and Misc. Expenses 50.66 37.64Depreciation 3.62 2.29 Total Revenue Expenditure : 160.05 180.45 Total Research and Development Expenditure : 236.99 180.45

Amount MUs

43 Subsidy Receivable from Government of GujaratThe Company has reviewed the status of subsidies receivable as of 31st March, 2020 of 2,07,842.39Lakhs (31st March, 2019 : 3,24,588.53 Lakhs) in accordance with its policy on financial instrumentsand does not expect any credit loss.


( in Lakhs) ( in Lakhs)

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44 Related Party DisclosuresA Name of Related Parties and description of relationship:

Name of Related Parties

Gujarat State Electricity Corporation LimitedGujarat Energy Transmission Corporation LimitedDakshin Gujarat Vij Company LimitedMadhya Gujarat Vij Company LimitedPaschim Gujarat Vij Company LimitedUttar Gujarat Vij Company LimitedGujarat Industries Power Company LimitedShri Pankaj Joshi, IAS (02.11.2019 to 16.12.2019)Smt. Sunaina Tomar, IAS (10.01.2020 to 31.03.2020)Shri Pankaj Joshi, IAS (01.04.2019 to 01.11.2019)Smt. Shahmeena Husain, IAS (30.08.2019 to 31.03.2020)Ms. Mona Khandhar, IAS (01.04.2019 to 31.08.2019)Shri N N Misra (01.04.2019 to 31.03.2020)Shri R C Dhup (01.04.2019 to 31.03.2020)Shri Milind Torawane, IAS (01.04.2019 to 01.10.2019)Shri Roopwant Singh, IAS (01.10.2019 to 31.03.2020)Shri S B Khyalia (01.04.2019 to 01.11.2019)Shri K M Bhuva (01.04.2019 to 31.03.2020)Shri Shubhadeep Sen (01.04.2019 to 31.03.2020)Shri Parthiv Bhatt (01.04.2019 to 31.03.2020)

Nature of RelationshipSubsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary CompanySubsidiary CompanyAssociate CompanyChairmanChairpersonKey Management Personnel (KMP)Key Management Personnel (KMP)Woman DirectorIndependent DirectorIndependent DirectorDirectorDirectorKey Management Personnel (KMP)Key Management Personnel (KMP)Key Management Personnel (KMP)Key Management Personnel (KMP)

B The following transactions were carried out with the related parties in ordinary course ofbusiness during the year:

Nature of Transaction SubsidiaryCompany

AssociateCompany KMP Total

Transactions during the year

Sale of Power 45,52,935.48 - - 45,52,935.48

(43,97,801.63) - - (43,97,801.63)

Dakshin Gujarat Vij Company Limited 12,89,831.32 - - 12,89,831.32

(12,00,168.22) - - (12,00,168.22)


176


Madhya Gujarat Vij Company Limited 5,40,410.96 - - 5,40,410.96(5,34,019.67) - - (5,34,019.67)

Paschim Gujarat Vij Company Limited 15,47,243.17 - - 15,47,243.17(15,41,798.68) - - (15,41,798.68)

Uttar Gujarat Vij Company Limited 11,75,450.03 - - 11,75,450.03(11,21,815.07) - - (11,21,815.07)

Allocation of General Insurance Premium 1,554.07 - - 1,554.07 (1,625.51) - - (1,625.51)

Dakshin Gujarat Vij Company Limited 198.16 - - 198.16(208.09) - - (208.09)

Madhya Gujarat Vij Company Limited 206.03 - - 206.03(215.29) - - (215.29)

Paschim Gujarat Vij Company Limited 377.71 - - 377.71(399.01) - - (399.01)

Uttar Gujarat Vij Company Limited 234.59 - - 234.59(239.35) - - (239.35)

Gujarat Energy Transmission Corporation Limited 346.00 - - 346.00(362.37) - - (362.37)

Gujarat State Electricity Corporation Limited 191.57 - - 191.57(201.40) - - (201.40)

Allocation of Interest 4,093.66 - - 4,093.66(9,214.71) - - (9,214.71)

Dakshin Gujarat Vij Company Limited 124.94 - - 124.94(162.45) - - (162.45)

Madhya Gujarat Vij Company Limited 248.42 - - 248.42(299.31) - - (299.31)

Paschim Gujarat Vij Company Limited 1,097.41 - - 1,097.41(1,280.76) - - (1,280.76)

Uttar Gujarat Vij Company Limited 492.20 - - 492.20(386.46) - - (386.46)

Gujarat Energy Transmission Corporation Limited 2,130.69 - - 2,130.69(7,085.74) - - (7,085.74)


177


Purchase of Excess Electricity 7,418.57 - - 7,418.57(191.01) - - (191.01)

Paschim Gujarat Vij Company Limited 3,832.12 - - 3,832.12 (114.60) - - (114.60)

Uttar Gujarat Vij Company Limited 3,586.45 - - 3,586.45(76.40) - - (76.40)

Transmission Charges 3,18,655.76 - - 3,18,655.76(2,64,559.21) - - (2,64,559.21)

Gujarat Energy Transmission Corporation Limited 3,18,655.76 - - 3,18,655.76(2,64,559.21) - - (2,64,559.21)

Purchase of Electricity 9,40,693.24 1,00,976.83 - 10,41,670.07(11,44,910.81) (98,180.66) - (12,43,091.47)

Gujarat State Electricity Corporation Limited 9,40,693.24 - - 9,40,693.24(11,44,910.81) - - (11,44,910.81)

Gujarat Industrial Power Company Limited - 1,00,976.83 - 1,00,976.83- (98,180.66) - (98,180.66)

Rebate (Cash Discount) on Prompt 7,596.55 - - 7,596.55 Payment of Transmission Charges (7,479.42) - - (7,479.42) Gujarat Energy Transmission Corporation Limited 7,596.55 - - 7,596.55

(7,479.42) - - (7,479.42)

Rebate (Cash Discount) on Prompt 17,501.33 972.18 - 18,473.51 Payment of Power Purchase (22,276.09) (1,029.05) - (23,305.14) Gujarat Industrial Power Company Limited 972.18 - 972.18

- (1,029.05) - (1,029.05) Gujarat State Electricity Corporation Limited 17,501.33 - - 17,501.33

(22,276.09) - - (22,276.09)

Dividend Income - 1,113.15 - 1,113.15- (1,036.38) - (1,036.38)

Gujarat Industrial Power Company Limited - 1,113.15 - 1,113.15- (1,036.38) - (1,036.38)


178


Allocation of e-Urja Expenses 2,026.98 - - 2,026.98 - - - -

Dakshin Gujarat Vij Company Limited 273.36 - - 273.36 - - - -

Madhya Gujarat Vij Company Limited 262.07 - - 262.07 - - - -

Paschim Gujarat Vij Company Limited 487.83 - - 487.83- - - -

Uttar Gujarat Vij Company Limited 316.59 - - 316.59 - - - -

Gujarat Energy Transmission Corporation Limited 449.90 - - 449.90- - - -

Gujarat State Electricity Corporation Limited 237.23 - - 237.23- - - -

Remuneration paid to KMP / Directors: - - 112.94 112.94 - - (168.15) (168.15)

Shri Pankaj Joshi, IAS - - 12.80 12.80- - (32.27) (32.27)

Smt. Shahmeena Husain, IAS - - 15.16 15.16- - - -

Shri S B Khyalia - - 20.70 20.70- - (37.65) (37.65)

Shri K M Bhuva - - 8.78 8.78- - (33.32) (33.32)

Shri M B Parikh - - - - - - (8.04) (8.04)

Shri Parthiv Bhatt - - 26.96 26.96- - (28.83) (28.83)

Shri Shubhadeep Sen - - 28.55 28.55- - (28.04) (28.04)

Perquisites paid to KMP / Directors: - - 4.19 4.19- - (10.79) (10.79)

Shri Pankaj Joshi, IAS - - 1.27 1.27 - - (3.21) (3.21)



179


Shri S B Khyalia - - 2.06 2.06 - - (3.74) (3.74)

Shri K M Bhuva - - 0.86 0.86 - - (3.31) (3.31)

Shri Shubhadeep Sen - - - -- - (0.53) (0.53)

Incidental Charges paid to KMP / Directors: - - 0.82 0.82- - (1.02) (1.02)

Shri Sujit Gulati, IAS - - - -- - (0.02) (0.02)

Shri Raj Gopal, IAS - - - - - - (0.14) (0.14)

Shri Pankaj Joshi, IAS - - 0.14 0.14- - (0.28) (0.28)

Smt. Sunaina Tomar, IAS - - 0.04 0.04- - - -


Shri Milind Torawane, IAS - - 0.02 0.02- - (0.14) (0.14)

Shri Roopwant Singh, IAS - - 0.06 0.06- - - -

Ms. Mona Khandhar, IAS - - 0.02 0.02- - (0.10) (0.10)

Shri N N Misra - - 0.08 0.08- - (0.08) (0.08)

Shri R C Dhup - - 0.08 0.08- - (0.04) (0.04)

Shri S B Khyalia - - 0.12 0.12- - (0.30) (0.30)

Shri K M Bhuva - - 0.14 0.14- - (0.18) (0.18)

Sitting Fees paid to Independent Directors: - - 0.60 0.60 - - (0.30) (0.30)

Shri N N Misra - - 0.30 0.30 - - (0.20) (0.20)

Shri R C Dhup - - 0.30 0.30- - (0.10) (0.10)


180


a As an annual closing procedure, Inter - Subsidiary Company balances' duly reconciled have beentransferred by all Subsidiary Companies to the debit / credit of the Company’s account (GUVNL) andare reflected in the above balances as appearing in Other Current Financial Assets (Note No.10) /Other Current Financial Liabilities (Note No.23).

b The Company has not paid any remuneration to Chairman, Shri Pankaj Joshi, IAS and ChairpersonSmt. Sunaina Tomar, IAS as they occupied the position of Addl. Chief Secretary, Energy &Petrochemicals Dept., Govt. of Gujarat and were therefore drawing salary from Govt. of Gujarat.

Receivable / Payable SubsidiaryCompany

AssociateCompany KMP Total

Receivables 10,29,763.42 - - 10,29,763.42(5,21,430.47) - - (5,21,430.47)

Gujarat State Electricity Corporation Limited 4,15,464.28 - - 4,15,464.28(54,300.88) - - (54,300.88)

Gujarat Energy Transmission Corporation Limited 6,14,299.14 - - 6,14,299.14(4,67,129.59) - - (4,67,129.59)

Paschim Gujarat Vij Company Limited - - -- - - -

Payables 3,48,356.61 15,325.08 - 3,63,681.69(2,75,037.17) (15,406.48) - (2,90,443.66)

Gujarat State Electricity Corporation Limited - - - - - - - -

Dakshin Gujarat Vij Company Limited 76,215.88 - - 76,215.88(71,866.27) - - (71,866.27)

Uttar Gujarat Vij Company Limited 1,25,424.86 - - 1,25,424.86(1,03,221.25) - - (1,03,221.25)

Madhya Gujarat Vij Company Limited 89,438.19 - - 89,438.19(67,948.40) - - (67,948.40)

Paschim Gujarat Vij Company Limited 57,277.68 - - 57,277.68(32,001.25) - - (32,001.25)

Gujarat Industrial Power Company Limited - 15,325.08 - 15,325.08- (15,406.48) - (15,406.48)

Note : Previous Year figures are mentioned in brackets.

Balance as at:


181


45 The Company did not have any long term contracts including derivative contracts for which therewere any material foreseeable losses. Further, some balances of Trade and Other Receivables,Trade and Other Payables and Loans are subject to confirmation/reconciliation. Adjustments, if any,will be accounted for on confirmation/reconciliation of the same, which will not have a material impact.

46 “Loan to Others” reflected in Note No.10: Other Financial Assets is the amount recoverable fromM/s. Federation of Gujarat Industries (FGI), Baroda, for conducting Switch Global Expo-2016 event,for which the Company has initiated legal recovery process. The Company assesses full recovery ofthis amount and hence has considered this amount to be good and recoverable.

47 Govt. of Gujarat implemented the “UJALA GUJARAT” Scheme which entailed promotion of replacementof conventional bulbs with energy efficient bulbs in order to save energy. This scheme was implementedjointly by GUVNL and its Distribution subsidiaries (DISCOMs) along with the executing agency M/s.Energy Efficient Services Limited (EESL). EESL has made claims under the scheme, which havebeen only partially paid and an amount of 1771.11 Lakhs (previous year 1771.11 Lakhs) has beenretained from the total claims, which would be released after complete reconciliation and submissionof all related information by EESL. The amount retained is reflected in Note No.23: Other FinancialLiability as “Deposits and Retention from Suppliers/Contractors”.

48 GEB’s Contributory Provident Fund Trust (GEB’s CPF Trust) is an exempted PF Trust (U/s 17 of theEmployees Provident Fund & Miscellaneous Provisions Act, 1952) which is responsible for all ProvidentFund compliances and also manages the Provident Fund accumulations of all employees of GUVNL& its six Subsidiary Companies. The Trust which is a separate entity had invested a portion of itscorpus amounting to 16510.00 Lakhs in 3 IL&FS Group Companies (viz. M/s. IL&FS TransportNetwork Ltd., M/s. Infrastructure Leasing & Financial Services Ltd. and M/s. IL&FS Financial ServicesLtd.) in accordance with the investment pattern / guidelines issued by Ministry of Labour & Employment,New Delhi. Due to sudden financial crisis, the IL&FS Group Companies stopped payment of interestto the Trust in 2018. Thereafter, the entire IL&FS Group was referred to National Company LawTribunal (NCLT) under Insolvency & Bankruptcy Code (IBC), 2016.

As a result, full recovery of principal and interest from IL&FS became doubtful for GEB’s CPF Trust.Therefore, GUVNL being the parent establishment of the Trust has withheld a total amount of

18256.66 Lakhs (towards principal and interest) from monthly power purchase bills of 7 IL&FSGroup Companies (from November, 2018 onwards) with whom the Company is having Power PurchaseAgreements (PPA). Subsequently, GUVNL has transferred this entire retained amount of 18256.66Lakhs to GEB’s CPF Trust in March, 2020. As on date, NCLT resolution proceedings are in progressand its ultimate result is awaited.

Similarly, the Trust had also invested a portion (total 17397.60 Lakhs) of its corpus in M/s. Punjab


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State Industrial Development Corporation Ltd., M/s. Punjab Finance Corporation Ltd., M/s. RelianceCapital Ltd., M/s. Reliance Home Finance Ltd., and M/s. Dewan Housing Finance Ltd. in accordancewith the investment pattern / guidelines issued by Ministry of Labour & Employment, New Delhi. But,due to financial crisis in these organisations, they have stopped payment of interest / repayment ofprincipal to the Trust. Therefore, GUVNL has provided 10946.00 Lakhs towards dues on account ofinterest and principal considering the future uncertainty regarding full recovery of the same fromthese Companies. As on date, the resolution proceedings for these Companies are in progress beforedifferent Forums, as reflected in Note No.30 : Employee Benefit Expenses.

49 The Company enters into Power Purchase Agreements (PPAs) with various power generators toprocure power as per agreed contractual terms. Contractual issues arising between the Companyand the power generators are addressed on an ongoing basis including if the matters have to beenforced through Regulatory forums and Courts. Certain contractual issues had arisen between thepower generators and the Company in the earlier years which have progressed through variousstages of grievance redressal. and contract enforcement through our justice system and is still underdispute. The Company has reviewed the progress of all such disputed / contested matters and hasassessed the provision as of the year end based on best judgement basis as reflected in Note No.22.

50 COVID-19 virus, a global pandemic has affected the world economy including India leading to significantdecline and volatility in the financial markets and decline in economic activities.

On 24th March 2020, Government of India ordered a complete nationwide lockdown of 21 days as aprecautionary measure against the COVID-19 pandemic, which was extended twice till 30th May,2020.

The Company is engaged in the business of bulk purchase and sale of electricity. Since electricityhas been categorised as an “Essential Service”, the Company was in position to supply its servicesthroughout the lockdown period to all its consumers.

Estimation of Uncertainties:

The Company believes that it has taken into account all the known impacts arising from COVID-19pandemic in the preparation of the Standalone Financial Statements. In developing the assumptionsrelating to the possible future uncertainties in the global economic conditions because of this pandemic,the Company, as at the date of approval of these financial statements has used internal and externalsources of information. However, the impact assessment of COVID-19 is a continuing process giventhe uncertainties associated with its nature and duration. The Company will continue to monitor anymaterial changes in the future economic conditions and the impact thereof on the Company, if any.The eventual outcome of the impact of the COVID-19 pandemic on the Company’s business may bedifferent from that estimated as on the date of approval of these Standalone Financial Statements.


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Property, Plant and Equipment:

The Company has estimated recoverable amount of the cash generating units and has determined itto be greater than the carrying amount. Reasonable sensitivities in key assumptions consequent tothe change in estimated future economic conditions on account of possible effects relating to COVID19is unlikely to cause the carrying amount to exceed the recoverable amount of the cash generatingunit.

Investments, Loans and Advances & Other Assets:

In assessing the recoverability of Company’s assets such as investments, loans, advances and otherfinancial and non-financial assets, the Company has considered internal and external informationupto the date of approval of these Standalone Financial Statements. The Company has performedsensitivity analysis on the assumptions used basis the internal and external information / indicators offuture economic conditions and expects to recover the carrying amount of the assets.

Trade Receivables:

The Company determines the allowance for credit losses based on historical loss experience adjustedto reflect current and estimated future economic conditions. In assessing the recoverability of tradereceivables, the Company has considered subsequent recoveries, past trends, and internal and externalinformation available upto the date of issuance of these financials. Based on assessment done by theCompany, there is no allowance for credit losses required based on the subsequent recovery ofthese receivables.

Revenue:

The Company’s revenue from sale of electricity to its consumers has downward impact due to lockdown.Since this situation is likely to prevail in Financial Year 2020-21, the Company is in process ofidentification of loss in revenue due to disruption of supply of electricity to these consumers.

Employee and Other Costs:

The Company is making payments of salaries and wages to all employees on its payrolls as also thecontract workers during the time of lockdown. Further, the Company is also incurring various othercosts, including fixed costs during the period of full/partial lockdown. This may impact the profitabilitylevels of the Company.

Going Concern:

The management has evaluated the various financial ratios, expected ageing and maturities of assetsand liabilities and the various internal and external information available. The management does not


184


see any risks to Company’s ability to continue as a going concern and expects that Company will beable to meet its liabilities in the foreseeable future, as and when the same fall due.

51 Previous year figures have been reclassified and regrouped wherever necessary to confirm to currentyear’s classification.

52 Approval of Financial Statements

The Standalone Financial Statements were approved for issue by the Board of Directors on September29, 2020.

53 Statement of Management:

a) The Current Assets, Loans and Advances are good and recoverable and are approximately ofthe values as shown, if realized in the ordinary course of business unless and to the extentstated other wise in the Accounts. Subject to the notes and the method of accounting followedby the Company, provision for all known liabilities is adequate. There are no contingent liabilitiesexcept those stated in the notes.

b) Balance Sheet, Statement of Profit & Loss and Cash Flow Statement read together with theNotes to the Accounts, are drawn up so as to disclose the information required under theCompanies Act, 2013 as well as give a true and fair view of the state of affairs of the Companyas at the end of the year and results of the Company for the year under review.



For and on behalf of the BoardGujarat Urja Vikas Nigam Ltd.





Sd/-(PARTHIV BHATT)

Company Secretary







186


CONSOLIDATED FINANCIALSTATEMENTSF.Y. 2019-20

187


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION143(6) (b) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIALSTATEMENTS OF GUJARAT URJA VIKAS NIGAM LIMITED, VADODARA FOR THE YEARENDED 31st MARCH 2020.

The preparation of Consolidated Financial Statements of Gujarat Urja Vikas Nigam Limited for the yearended 31st March 2020 in accordance with the financial reporting framework prescribed under the CompaniesAct, 2013 (Act) is the responsibility of the Management of the Company. The Statutory Auditors appointedby the Comptroller and Auditor General of India under Section 139(5) read with Section 129(4) of the Actare responsible for expressing opinion on the financial statements under Section 143 read with Section129(4) of the Act based on independent audit in accordance with the Standards on Auditing prescribedunder Section 143 (10) of the Act. This is stated to have been done by them vide their Audit Report dated10 November 2020.

I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit ofthe Consolidated Financial Statements of Gujarat Urja Vikas Nigam Limited for the year ended 31st March2020 under Section 143(6)(a) read with Section 129(4) of the Act. We conducted a supplementary audit ofthe financial statements of Gujarat State Electricity Corporation Limited, Gujarat Energy TransmissionCorporation Limited, Uttar Gujarat Vij Company Limited, Madhya Gujarat Vij Company Limited,Dakshin Gujarat Vij Company Limited and Paschim Gujarat Vij Company Limited but did not conductsupplementary audit of the financial statements of associate company Gujarat Industries Power CompanyLimited for the year ended on that date. This supplementary audit has been carried out independentlywithout access to the working papers of the Statutory Auditors and is limited primarily to inquiries of theStatutory Auditors and Company personnel and a selective examination of some of the accounting records.

Based on my supplementary audit, I would like to highlight the following significant matters under Section143(6)(b) read with Section 129(4) of the Act which have come to my attention and which in my view arenecessary for enabling a better understanding of the Consolidated Financial Statements and the relatedAudit Report.

A. Comment on Financial Position1. Balance Sheet

Equity and LiabilitiesDeferred Government Grants, Subsidies & Contributions (Note No. 20) - 9051.02 crore

A reference is invited to Note no. 64 of the Financial Statements, which stated that with effect from 01st April2016, the Group Companies have changed the method of computing the grants/consumer contribution

CONSOLIDATED FINANCIAL STATEMENTS 2019-20

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received against depreciable assets to be recognized in Statement of Profit and Loss from reducing balancemethod to the straight line method and consequently the rates at which grant is recognized in the Statementof Profit and Loss.

The Company has determined that the change to recognize grants in proportion of the depreciation expensesis a change in accounting estimates and is to be applied prospectively.

As per Accounting Standard-12, Grants related to depreciable assets are treated as deferred income whichis recognised in the Profit and Loss Statement on a systematic and rational basis over the useful life of theasset. Indian Accounting Standard-20 also state that, grants related to depreciable assets are usuallyrecognised in Profit or Loss over the periods and in the proportions in which depreciation expense on thoseassets is recognised.

The above change in method was made by the Group Companies as there was a mismatch of the grantsrecognized in the Statement of Profit and Loss versus the related depreciation expense. Thus, the Companyhas changed the method of recognition of deferred income in order to align the recognition of deferredincome with the related depreciation expense. As the provision for treatment of deferred income to berecognised in the Profit and Loss Statement on a systematic and rational basis over the useful life of theasset are same in AS-12 and Ind AS 20, the change was not mandated by Ind AS 20. Hence, the Companychanged the method in order to correct an error.

Since the depreciable assets related to which grants/consumer contribution received have been capitalizedin the books of accounts, the effect of such change should have been worked our retrospectively andaccounted for in the opening balance of Deferred Government Grants, Subsidies and Consumer contribution.

This has resulted in overstatement of retained earnings and understatement of balances of DeferredGovernment Grants, Subsidies and Consumer Contribution towards Capital Assets by 1450.15 crore asat 31st March 2017.

Disclosure of the above facts in Note no. 64 instead of giving accounting effect does not suffice thepurpose.

Despite being pointed out in the year 2016-17, 2017-18 and 2018-19, no corrective action has been takenby the Company during 2019-20.

2. Balance SheetEquity and LiabilitiesLiabilitiesCurrent Liabilities


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Other Current Financial Liabilities (Note No. 29)Deposits and retentions from Suppliers / Contractors - 3389.28 crore

The above does not include 182.57 crore withheld by GUVNL from monthly power purchase bills of sixseparate IL&FS Group wind power Companies from November 2018 to 14th October 2019 with whom theCompany is having Power Purchase Agreements (PPA). The amount has been transferred to its CPF Trustto set-off loss to its CPF Trust due to non-receipt of interest and principal amounts against investmentmade in three IL&FS group companies that defaulted on interest payments due on 30th September 2018and onwards.

As the matter is sub-judice in NCLT, the set off of receivable and payable is not admissible. This resulted inunderstatement of Deposits & Retentions from suppliers (Other Financial Liability) by 182.57 core andconsequent understatements of Recoverable from CPF Trust (Other Financial Assets).

B. Comments on Disclosure

3. Notes to the Financial Statements

The above does not disclose the claim of 111.68 crore being differential cost of land demanded by SuratMunicipal Commissioner (SMC). The company has paid initial cost of 30.64 crore as per Jantri rate forland at five sites under SMC and constructed substations. The Land Disposal committee in final valuationhad finalized the cost of land at 142.32 crore. Accordingly SMC, raised claim of 111.68 crore on accountsof differential cost of land. The company has taken up the matter to reduce the rate with various Governmentauthorities but no directive has been received till date. The Notes to the Financial Statements are deficientto the extent of non-disclosure of the above material fact.

4. Notes to the Consolidated Financial StatementsContingent Liabilities, Contingent Assets and Capital Commitments (Note No. 49)Joint VentureClaims against the Company not acknowledged as Debt - 159.91 crore

Above includes 159.91 crore being the Contingent Liability towards Claims against the GSECL (holding40 per cent share in M/s Maha Gujarat Collieries Limited) by M/s AMPL regarding development of CoalBlock.

Paragraph 4.1 of Significant Accounting Policies inter-alia state that Consolidated Financial Statementshave been prepared by combining the financial statements of the Company and its subsidiaries on a line-by-line basis by adding together the book values of the like items after eliminating in full intra-group assets,liabilities etc.


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As per the Financial Statements of GSECL for the year ended 31st March 2020, the share of the Companyin Contingent Liabilities of MGCL (including interest) is 222.28 crore

This has resulted in understatement of Contingent Liabilities by 62.37 crore

For and on behalf of the

Comptroller and Auditor General of India

Sd/-

(H. K. Dharmadarshi)


Place : Ahmedabad

Date : 13.01.2021


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INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF GUJARAT URJA VIKAS NIGAM LIMITED

Report on the Audit of the Consolidated Financial Statements

Opinion

We have audited the accompanying consolidated financial statements of GUJARAT URJA VIKAS NIGAMLIMITED, which comprise the Balance Sheet as at 31st March, 2020, the Statement of Profit and Lossincluding the statement of Other Comprehensive Income, Statement of Changes in Equity, and Statementof Cash Flows for the year then ended, and Notes to the Financial Statements, including a summary of thesignificant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanations given to us, the aforesaidconsolidated financial statements give the information required by the Companies Act, 2013, as amended(“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principlesgenerally accepted in India, of their consolidated state of affairs of the Company as at 31st March, 2020,and its consolidated profit including other comprehensive income, its consolidated cash flows & consolidatedchanges in equity for the year ended on that date.

Basis for Opinion

We have conducted our audit of the consolidated financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the companies Act, 2013. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit of the ConsolidatedFinancial Statements section of our report. We are independent of the Company in accordance with the'Code of Ethics' issued by the Institute of Chartered Accountants of India together with the Ethical requirements


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that are relevant to our audit of the financial statements under the provision of the Companies Act, 2013and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Codes of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion on the consolidated financial statements.

Basis of Qualified Opinion

1. In case of Gujarat State Electricity Corporation Limited (“the subsidiary company”)

a. The company recognises replaced items of Property, Plant and Equipment (PPE) as addition ofPPE. However, carrying amount of old parts, which are replaced, not derecognised from PPE.This is not in accordance with Ind AS - 16 “Property, Plant and Equipment”. The effect of non-compliance of Ind AS - 16 is not ascertainable.

b. The company recognizes capital spares as PPE and other spares as inventory based onpredefined code system and not in accordance with requirement of Ind AS - 2 'Inventories' andInd AS - 16 'Property, Plant and Equipment'. The effect of such non-compliance of Ind AS - 2and Ind AS - 16 is not ascertainable.

c. Balances under the group of other financial assets, other current financial liabilities and tradepayables are subject to confirmation and adjustment, if any, required upon such Confirmation isnot determinable.

2. In case of Uttar Gujarat Vij Company Limited (“the subsidiary company”)

We draw attention to note No.40 to the financial statements wherein the Company has changed the methodof accounting regarding writing back balances from grants/ consumer contribution related to certaindepreciable assets from hitherto 10% on reducing balance basis to 5.28% on straight line basis prospectivelycommencing from the financial year 2016/17. However, in our opinion the effect of such change has to beworked out retrospectively commencing from the date on which the depreciable assets related to which thegrants/consumer contribution has been received have been capitalized in the books of account and effectof such change be accounted for in the opening balance of grants/ consumer contribution.

Non accounting of the above effect has resulted into understatement of balance of grants/consumercontribution as on 31st March, 2020 by 18,934.82 lakhs and overstatement of balance of 'RetainedEarnings' by like amount. Had the above been accounted for, the balance of grants/ consumercontributionwould have been 1,66,292.7 lakhs and balance of 'Retained Earnings' would have been 15,353.51lakhs as on 31st March, 2020 as against the reported figures of 1,47,357.84 and 34,288.33 lakhsrespectively.


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3. In case of Gujarat Energy Transmission Corporation Limited (“the subsidiary company”)

i) The vendor-wise details of liabilities for the supply of Capital Materials reflected in the AccountCode 42100 amounting to 16,631.33 Lakhs as on March 31st, 2020 are maintained in an MSExcel Sheet and the vendor-wise Ledger Accounts are not maintained by the Company whichare also not reconciled with the subsequent payments made to the vendor/s. Hence, we areunable to comment on the correctness of the vendor-wise outstanding balance as on March31st, 2020.

ii) The Other Financial Liabilities which are not bifurcated into Current and Non-Current Liabilityas required by IND-AS 1 (Presentation of Financial Statements) are as follows: -

a) Deposits received from Suppliers/Contractors amounting to 20,884.90 Lakhs;

b) Retention Money received from Suppliers/Contractors amounting to 58,739.47 Lakhs.

Hence, the impact, if any, for not arriving at the fair value measurement of the Non-Currentportion of such deposits/Retention Money as per IND-AS 109 (Financial Instruments) on thefinancialsas of March 31st, 2020, could not be ascertained.

iii) The Company has not capitalised Borrowing Costs to the projects grouped under Capital Workin Progress in the financial year 2019-2020 (except Capitalisation of Borrowing Costs pertainingto KFW projects). Due to the non-capitalisation of Borrowing Costs to the Capital Work inProgress (except Capitalisation of Borrowing Costs pertaining to KFW projects) in the financialyear 2019-2020 as per IND-AS 23 (Borrowing Costs), the impact on profitability of the Companyand the Capital Work in Progress on the financials as of March 31st, 2020 could not be ascertained.

Emphasis of Matter

We draw attention to the following matters in the notes to Ind AS financial statements -

1. In case of Gujarat State Electricity Corporation Limited (“the subsidiary company”)

We draw attention to note no. 23 to the financial statements in respect of recognition of deferred taxassets on unabsorbed depreciation, unused tax losses and unused tax credit for the reason stated inthe said note.

Our opinion is not modified in respect of these matters.

2. In case of Gujarat Energy Transmission Corporation Limited (“the subsidiary company”)

i) Attention is invited to Note No. 63 forming part of Notes to Financial Statements, with respect to


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the reconciliation to be done between the Government grants/Consumer contribution receivedtowards the Capital Assets and the individual Capital Assets created from such Governmentgrants/Consumer contribution which has not been done by the Company in the financials as ofMarch 31st, 2020.

Further, the Customer-wise details of the Consumer contribution towards Capital Assetsamounting to 1,60,943.36 Lakhs as on March 31st, 2020 is not maintained by the Company.

As the Company is not able to individually identify the assets created, the impact of systematicallocation of grants against the depreciation of such assets as per IND-AS 20 (Accounting forGovernment Grants and Disclosure of Government Assistance) cannot be ascertained in thefinancialsas on March 31st, 2020.

ii) As required by the Principal Accountant General (E&RSA), Gujarat, the Company has notobtained an opinion from the Expert Advisory Committee (EAC) of the Institute of CharteredAccountants of India (ICAI) with respect to the effect of the prospective/retrospective accountingtreatment for change in recognition of grants in proportion to the depreciation expense whichwas effective from April 1st, 2016. In the absence of such EAC opinion, the impact, if any, on thefinancials of the Company as on March 31st, 2020 could not be ascertained.

iii) The Depreciation and Amortization Expenses of the current financial year 2019-2020 includesdepreciation of previous years amounting to 1,716.52 Lakhs, charged in the current year,having an impact on financials of 2019-2020 to that extent. Also, the negative Net Block ofFixed Assets amounting to 157.91 Lakhs appearing in the Fixed Assets Register has beenaccounted for in the books of accounts as on March 31st, 2020. However, the same has notbeen updated in the Fixed Assets Register maintained by the Company as on March 31st, 2020.Hence, the amount of Property, Plant and Equipment as per the books of accounts as on March31st, 2020 and as per the Fixed Assets Register maintained by the Company as on March 31st,2020, is unreconciled to that extent.

iv) Attention is invited to Point (iv) of Note No. 49 forming part of Notes to Financial Statements,relating to Impairment Analysis done by the Managementof under constructed projects in CapitalWork in Progress and reasons for not impairing under construction projects which have beenheldup due to various issues like land acquisition problems, Right of Way problems, Permission/Approvals from Forest Authorities, Court cases, Land & Crop compensation, Farmers/Villagersprotest, Police Protection etc. The said analysis reveals that there is an impairment of 382.03Lakhs only and the recoverable value of all other assets in CWIP are more than the carryingvalue as on March 31st, 2020.


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Further, the Company doesnot have a system to conduct the physical verification of the CWIPto determine the actual stage of completion of the project/s as on March 31st, 2020.

Thus, the impact of the same, if any, on the financial statements as on March 31st, 2020 couldnot be ascertained.

v) It is highlighted that due to the COVID-19 Pandemic induced restrictions on physical movementand strict timelines, our entire Audit team could only visit the Corporate Office and the StateLoad Despatch Centre (SLDC) Unit of the Company in Vadodara and could not visit all theother Circles/Divisions and Other Units of the Company, toundertakee the required auditprocedures as prescribed under the ICAI issued Sstandards on Auditing, including but notlimited to :

l Inspection, observation, Examination and Verification of the original documents of invoicesat Circle/Division/Unit level, legal title deeds of immovable properties and other files;

l Physical verification of Cash, including adequate internal controlsthereof;

l Physical Verification of Inventories, PPE (Property, Plant and Equipment) and the status ofCapital Work in Progress as on March 31st, 2020;

l Any other processes which required the physical presence of the Audit team.

However, we modified our audit procedures and obtained all information, supporting documentsand other inputs pertaining to all Circles/Divisions/Units of the Company at the Corporate Officeat Vadodara,by verifying the hard copies of the proforma files provided to us by each Circles/Divisions/Units and also verified the scanned copies of the sample invoices, agreements, etc.provided to us by all Circles/Divisions/Units of the Company.

Our opinion is not modified with respect to these matters.

3. In case of Paschim Gujarat Vij Company Limited (“the subsidiary company”)

(i) Note 32(a) of the accompanying Standalone Financial Statements, in relation to security depositsobtained from Consumers other than HT Consumers are subject to reconciliation with subsidiaryrecords and consequent adjustments, if any, that may be required;

(ii) Note 48 of the accompanying Standalone Financial Statements, in relation to significantaccounting policy and the accounting treatment adopted by the company with regard to grant /subsidies and consumer contributions received by the company towards depreciable assets;


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(iii) Note 47 of the accompanying Standalone Financial Statements, in relation to the managementevaluation of COVID-19 impact on the operations and assets of the Company.

Our opinion is not modified in respect of this matter.

4. In case of Madhya Gujarat Vij Company Limited (“the subsidiary company”)

We draw your attention to Note 48 to the financial statements which explain the managements’assessment that the extent, to which COVID-19 pandemic will impact the Company’s operations andfinancial results, is dependent on future developments, which are highly uncertain.

Our opinion is not modified in respect of this matter.

5. In case of Dakshin Gujarat Vij Company Limited (“the subsidiary company”)

We draw attention to the following matters in the notes to Ind AS financial statements

1. Refer Note – 19.1 of Ind AS financial statements, the Company has adopted Ind AS for the firsttime in the Financial Year 2016-17. Ind AS 20 and AS 12 on Government grants in IndianAccounting Standards (Ind AS) and Previous GAAP at hindsight are in-principle the same inrelation to initial recognition of grants as well as recognition of grants in Profit& Loss statement.Both Ind AS 20 and AS 12 require / mandate a systematic basis of recognizing grants. Grantsrelated to depreciable assets are usually recognized in Profit& Loss statement over the periodsand in the proportions in which depreciation expense on those assets is recognized. It is pertinentto note that neither Ind AS nor GAPP lay down any emphasis on what the systematic basisshould be or give any indicative guide on the said criteria.

The Company has adopted a uniform policy to treat the Consumer Contribution and CapitalGrant as deferred credit and to be transferred as Deferred Income on Reducing Balance Method(WDV Method) since its inception as a deliberated and uniform decision based on the facts andcircumstances assessed at that time and the same has been reviewed and considered by thedifferent Auditors of the Company since inception and have noted it to be in compliance with theerstwhile GAAP requirements.

However, the WDV Method of recognizing Grants though in compliance with AS-12 as well asInd AS 20, results in a variation in the depreciation expense recognized and the amount ofgrant recognized in profit & Loss Statement every year. Further, the company recognizes thegovernment grants through compliance with their conditions and meeting the envisagedobligations. Hence, they should therefore be recognized in Profit& Loss statement over the


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periods in which the entity recognizes as expenses the related costs for which the grant isintended to compensate. The Company noted, based on its own experience and consideringprudent basis of allocating depreciation on a similar levels every year, that using the samemethod of recognizing grants would reduce the variation of depreciation and grants recognizedduring any year and the SLM method fulfills the requirement of Ind AS 20 i.e. a systematic basisof recognizing grants and is also the method used to depreciate assets, and accordingly theCompany, has changed the method of recognizing Grants in the Statement of Profit & Lossw.e.f. 01.04.2016 to match with the method used to depreciate the assets against which thegrants were received. Also, the company considers it apt to apply straight line depreciationsince it results in a constant charge over the useful life since the assets’ residual values will notundergo change.

Further, it is also to be noted that the selection of WDV method was neither error/omission nora misstatement from a failure to use or misuse of reliable information. The para 48 and para 34of Ind AS 8 also pointed out that corrections of errors are distinguished from changes in methodof recognizing Grants into P&L Account from WDV Method to SLM. Further, the depreciationmethod used shall reflect the pattern in which the asset’s future economic benefits are expectedto be consumed by the entity. Also, the depreciation method applied to an asset shall be reviewedat least at each financial year-end and, if there has been a significant change in the expectedpattern of consumption of the future economic benefits embodied in the asset, the method shallbe changed to reflect the changed pattern (Para 61 of Ind AS 16). Such a change shall beaccounted for as a change in an accounting estimate in accordance with Ind AS 8. Under IndAS 16 it has to be considered as a change in accounting estimate to be applied prospectivelyand not retrospectively.

It is to further state that since capital grants are linked to the assets, it is to consider how achange in depreciation method would be regarded i.e., a change in accounting policy or achange in estimate as well as its accounting treatment. Here, the change in the method ofdepreciation would be considered as a change in accounting estimate under Ind – AS 8 and allchanges in accounting estimates are to be applied prospectively and not retrospectively.

We would further draw the attention to para 35 of Ind AS 8, “When it is difficult to distinguish achange in an accounting policy from a change in an accounting estimate, the change is treatedas a change in an accounting estimate.”

GUVNL on behalf of DISCOMs, although the cited accounting treatment given is well supportedby the relevant provisions of the Accounting Standard(s), have still decided to consult and


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obtain an independent opinion from an eminent professional CA Firm and the captioned firmhas also opined endorsing the views of the Company in the subject matter.

In view of above, Deferred Govt. Grants, Subsidies and Consumer Contribution and retainedearnings are correctly accounted in the Financial Statements in compliance with Ind ASrequirements and that there is no over-statement of retained earnings and under-statement ofbalance of Deferred Govt. Grant & Subsidies and Consumer contribution towards Capital Assets.

If the Company had applied the above change in method retrospectively as was pointed as perthe objection raised by CAG auditors, the balances of retained earnings would have beendecreased and the balance of Deferred Government grants, Subsidies and Consumercontributions would have been increased by 29,344.70 Lakhs as at 31st March, 2020.

2. Refer Note 42A.I. which describe the uncertainty related to the outcome of certain disputes andlaw-suits filed against the Company. The impact (if any) of these disputes/law-suits on thefinancial statements of the Company could not be ascertained.

3. Refer Note 47 with reference to implications of Covid-19 pandemic. The outbreak of Coronavirus(Covid-19) pandemic globally and in India is causing significant disturbance and slowdown ofeconomic activity. The Company has evaluated the impact of this pandemic on its businessoperations and based on its review and current indicators of future economic conditions, thereappears to be a downward impact on the business of the company going forward amidst thecontinuity of the Covid-19 pandemic and the industry in which the Company operates continuesto see a sluggish outlook in most part of the year 2020-21.

4. The impact of coronavirus on the Company’s business will depend on future developments thatcannot be reliably predicted, including actions to contain or treat the disease and mitigate itsimpact on the economies of the affected countries, among others. A definitive assessment ofthe impact is not possible in view of the high uncertain economic environment and the scenariois still evolving. The Company has evaluated its liquidity position and recoverability and carryingvalues of its assets and changes in financial risks such as credit risk, liquidity risk and otherprice risk, and changes in objectives, policies and processes for managing those risks areexpected. Evaluation of management’s assessment around going concern revolves around ata minimum involve, evaluation of reliability of cash flow forecast prepared by the managementconsidering change in economic environment, management’s plan for future actions andassessing its feasibility in the circumstances.

5. In view of Company’s assessment check on the operations of the company, there appears to


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be a loss in revenue of the company in the short term scenario say for the year 2020-21 due todisruption of supply of electricity mainly to commercial and industrial units.

6. Refer Note 49 of the Ind AS Financial Statements which states that balances in respect ofTrade Receivables, Trade Payables, Loans and Advances as at 31.03.2020 are subject toreconciliation and confirmation. Also, Security Deposit from Consumers are subject toreconciliation with Subsidiary records.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in ouraudit of the standalone financial statements for the financial year ended 31st March, 2020. These matterswere addressed in the context of our audit of the Consolidated Financial Statements as a whole, and informing our opinion thereon, and we do not provide a separate opinion on these matters.

Information other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The other information comprisesthe information included in the Annual Report, but does not include the Consolidated Financial Statementsand our auditor's report thereon.

Our opinion on the Consolidated Financial Statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

When we read the other information report, if we conclude that there is a material misstatement therein, weare required to communicate the matter to those charged with governance to initiate actions applicable inthe applicable laws and regulations.

Responsibility of Management and those Charged with Governance for the Ind AS ConsolidatedFinancial Statements

The Company's Board of Directors is responsible for the matters stated in Section 134(5) of the CompaniesAct, 2013 (“the Act”) with respect to the preparation of these Consolidated Financial Statements that give a


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true and fair view of the consolidated financial position, financial performance including consolidated changesin equity, consolidated other comprehensive income and consolidated cash flows of the Company inaccordance with the accounting principles generally accepted in India, including the Indian AccountingStandards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and design, implementationand maintenance of adequate internal financial controls, that were operating effectively for ensuring theaccuracy and completeness of the accounting records, relevant to the preparation and presentation of theConsolidated Financial Statements that give a true and fair view andare free from material misstatement,whether due to fraud or error.

In preparing the Consolidated Financial Statements, management is responsible for assessing the Company'sability to continue as a going concern, disclosing, as applicable, matters related to going concern and usingthe going concern basis of accounting unless management either intends to liquidate the Company or tocease operation, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financial reporting process.

Auditor's Responsibility for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated Financial Statementsas a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreport that includes our opinion. Reasonable assurance is high level of assurance, but is not a guaranteethat 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 the users taken onthe basis ofthese Consolidated Financial Statements.

As a Part of an audit in accordance with SAs, we exercise professional judgment and maintainprofessionalskepticism throughout the audit. We also:

l Identify and assess the risk of material misstatement of the Consolidated Financial Statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detectinga material misstatement resulting from fraud is higher than for one resulting fromerror, as fraud mayinvolve collusion, forgery, intentionalomission, misrepresentations, or the override of internal control.


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l Obtain an understanding of internal control relevant to the audit in order to design audit procedure thatare appropriate in the circumstances. Under section 143(3)(i) of the Companies Act, 2013, we are alsoresponsible for expressing our opinion on whether the Company has adequate Internal Financial ControlsSystem in place and the operating effectiveness of such controls.

l Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

l Conclude on the appropriateness of management's use of the going concern basis of accountingand,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a going concern. Ifwe conclude that a material uncertainly exists, we are required to draw attention in our auditor'sreport to the related disclosures in the Consolidated Financial Statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up tothe date of our auditor's report. However, future events or conditions may cause the Company tocease to continue as a going concern.

l Evaluate the overall presentation, structure and content of the Consolidated Financial Statementsincluding the disclosures, and whether the Consolidated Financial Statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scopeand timing of the audit and significant audit finding, including any significant deficiencies in internal controlthat we identify during our audit.

We also provide those charge with governance with a statement that we have complied with relevantethical requirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable,relatedsafeguards.

From the matters communicated with those charged with governance, we determine those matters thatweremost significance in the audit of the Consolidated Financial Statements for the year ended 31st March, 2020and are therefore the key audit matters. We describe these matters in our auditor's report unlesslaw orregulation precludes public disclosure about the matter or when, in extremely rare circumstances, wedetermine the matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.


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Report on Other Legal and Regulatory Requirements

1. The Company is governed by the provisions of the Electricity Act, 2003 read with rules and theregulations issued thereunder. Section 1(4) (d) of the Companies Act 2013 also provides that theElectricity Act will apply to the extent the provisions of the Companies Act are in consistent with theprovisions of the Electricity Act, 2003. Accordingly, the Consolidated financial statements of theCompany for the year 2019-20 are compiled & reported.

2. As required by the Companies (Auditor's Report) Order, 2016 (“the Order”), issued by the CentralGovernment of India in terms of sub-section(11) of section 143 of the Companies Act, 2013, thestatement referred in the section is not applicable to the Consolidated Financial Statements for theyear under review.

3. 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 ofourknowledge 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 sofar as it appears from our examination of those books.

c) The reports on the accounts of the branch offices of the Company audited under Section 143(8)of the Act is not attached since the Company has no branches and the point is not applicable tothe Company for the year under review.

d) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss includingOther Comprehensive Income, Consolidated Statement of Changes in Equity and theConsolidated Cash Flow Statement dealt with by this Report are in agreement with the relevantbooks of account maintained for the purpose of preparation of the Consolidated FinancialStatements.

e) In our opinion, the aforesaid Consolidated Financial Statements comply with the AccountingStandards specified under Section 133 of the Act, read with Companies (Indian AccountingStandards) Rules, 2015, as amended.

f) The matters described in the Basis for Qualified Opinion paragraph, Emphasis of Matterparagraph and report on adequacy of internal financial controls with reference to financialstatement of the Group above, in our opinion, may not have an adverse effect on the functioningof the Group except in case of Gujarat State Electricity Corporation Limited, as per the StatutoryAuditor of the Company who have audited financial statement, may have an adverse effect onthe functioning of the Company.


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g) The Company being a Government Company, in view of Notification No. G.S.R 463 (E) dated5th June, 2015 issued by Government of India, the provision of Section 164(2) of the CompaniesAct, 2013 are not applicable to the Company.

h) With respect to the adequacy of the internal financial controls over financial reporting of theCompany with reference to these Consolidated Financial Statements and the operatingeffectiveness of such controls, refer to our separate Report in “Annexure B”.

i) With respect to the other matters to be included in the Auditor's Report in accordance with Rule11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of ourinformation and according to the explanations given to us:

i) The Consolidated Financial Statements disclose the impact of pending litigations on theconsolidated financial position of the Group, its associate and jointly controlled company.Refer respective Notes to the Consolidated Financial Statements relating to contingentliabilities have not been provided for.

ii) The Group, it's associate and jointly controlled entity did not have any material foreseeablelosses on long-term contracts including derivative contracts.

iii) There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Group, its associate and jointly controlled entity incorporated in India.

iv) As required by C & AG of India through directions/sub-directions issued under Section 143(5)of the Companies Act, 2013, we give our report in the attached “Annexure C".


DGSM & Co.



Sd/-


Partner


UDIN:20144245AAAAPH4357

Place: Ahmedabad

Date: 10.11.2020

204


Annexure - A to the Independent Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (“the Act”)

We have audited the Internal Financial Controls with reference to financial statements of Gujarat UrjaVikas Nigam Limited (“the Company”) as of 31st March 2020 in conjunction with our audit of the ConsolidatedInd AS Financial Statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controlsbased on the internal control over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting issued by the Institute of Chartered Accountants of India ('ICAI'). Theseresponsibilities include the design, implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of its business, includingadherence to Company's policies, safeguarding of its assets, prevention and detection of frauds and errors,accuracy and completeness of the accounting records, and timely preparation of reliable financial information,as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls with reference tofinancial statements based on our audit. We conducted our audit in accordance with the Guidance Note onAudit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards onAuditing, 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, both applicable to an audit of InternalFinancial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls with reference to financialstatements 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 internalfinancial controls system with reference to financial statements and their operating effectiveness. Our auditof internal financial controls with reference to financial statements included obtaining an understanding ofinternal financial controls with reference to financial statements, assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment, including the assessment of therisks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error.


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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the Company's internal financial controls system with reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A Company's internal financial controls with reference to financial statements is a process designed toprovide reasonable assurance regarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to financial statements includes those policies and procedures that

1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the Company;

2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and

3) 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.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements,including the possibility of collusion or improper management override of controls, material misstatementsdue to error or fraud may occur and not be detected. Also, projections of any evaluation of the internalfinancial controls with reference to financial statements to future periods are subject to the risk that theinternal financial controls over financial reporting may become inadequate because of changes in conditions,or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Companyhas, in all material respects, an adequate internal financial control system over financial reporting and suchinternal financial controls with reference to financial statements were operating effectively as at 31st March2020, based on the internal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

However, in case of Dakshin Gujarat Vij Company Limited,(“the Subsidiary Company”), in our opinioninternal control in respect of movement of inventories during maintenance and capital works, materialissued/received to/from third parties and material lying with sub-divisions, needs to be reviewed and


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strengthened. Further, we recommend for implementation of real time integrated ERP software.

We have considered the matter reported above in determining the nature, timing and extent of audit testsapplied in our audit of the financial statements of the Company and does not affect our opinion on thefinancial statements of the Company.

In case of Gujarat Energy Transmission Corporation Limited

Qualified Opinion

According to the information and explanations given to us and based on our audit, the following materialweaknesses have been identified as at March 31st, 2020:

a. The Company does not have a system of tagging the Fixed Assets which in our opinion is majormaterial weakness.

b. The Company does not have system to provide reconciliation between the individual capitalassets created from the Grant received from Government and consumer contribution receivedtowards capital assets as on March 31st, 2020. As a result, the impact of systematic allocationof grants against the depreciation of such assets cannot be ascertained as on March 31st, 2020.

c. The company does not have a system to conduct the physical verification of Capital Work inProgress (CWIP) to determine the actual stage of completion of the project as on March 31st,2020. Thus, the impact of the same is not ascertainable as on March 31st, 2020.

d. The company does not have its Disaster Recovery Site set up anywhere except in case ofSLDC, a unit of the Company, which has its DR Site at Gandhinagar. The Company is completelydependent on GUVNL its holding company in case of a system breakdown.

e. The Company does not have a documented “Restoration Plan” hence in case of a systemcrash the Company would be completely dependent on GUVNL for restoration of its operation.

f. Out of the systems existing in GETCO i.e. E-Urja & i-FAS, in case of i-FAS, the Company doesnot have a system wherein the User and Project Team perform User Acceptance Testing (UAT)in the testing environment and only upon obtaining satisfactory results for the UAT, the systemis allowed to be migrated to production.

As a result any wrong codification on live date would not give the desired results and wouldimpact the entire i-FAS system which in our opinion is a major control failure.

g. During the year the Company has not conducted any System audit by any external firm / agencywhich would certify that the information security management system existing in the Companyis as per Information Security Management System Standards.

h. The Company does not have a formal documented Business Continuity Plan (BCP) & Disaster


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Recovery Plan (DRP) plan that addresses all core processes, technologies i.e. applications,Critical servers, backup sites existing within the Company.

i. The Company that does not have a Crisis Management Team (CMT) which is formed withpersonnel from management and each areas being part of the team. As on date the Companydoes not have any SOP and documented plan for declaring a disaster which can be distributedto the Crisis Management Team (CMT) and members of CMT members so that their tasks canbe assigned in there is any kind of disaster.

j. Though a Fire Drill was conducted in July 2019, the Company does not have a practice ofscheduling Fire Drills, which in our opinion, is an important activity and should be adhered to.

A ‘material weakness’ is a deficiency, or a combination of deficiencies, in internal financial control overfinancial reporting, such that there is a reasonable possibility that a material misstatement of the company'sannual or interim financial statements will not be prevented or detected on a timely basis.

In our opinion, except for the effects of the material weaknesses described above on the achievement ofthe objectives of the control criteria, the Company has maintained, in all material aspects, adequate internalfinancial controls over financial reporting and such internal financial controls over financial reporting wereoperating effectively as of March 31st, 2020, based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

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 March 31st, 2020 Standalone Financial Statementsof the Company (GETCO), and these material weaknesses have affected our opinion on the StandaloneFinancial Statements of the Company and we have issued a qualified opinion on the Standalone FinancialStatements.


DGSM & Co.



Sd/-


Partner


UDIN:20144245AAAAPH4357Place: Ahmedabad

Date: 10.11.2020

208


Annexure B to the Independent Auditor's Report

The Annexure referred to in our report to the members of Gujarat Urja Vikas Nigam Limited for the yearended March 31st, 2020:

Report on the Direction issued by the Comptroller & Auditor General of India under section 143(5) ofCompanies Act, 2013 for the FY 2019-20.

Response / Remedial Measures

Impact onAccounts

andFinancial

Statements

Sr.No

Directions / SubDirections

Whether the Companyhas system in placetoprocess all accountingtransactions through ITsystem? If yes, theimplications of processingof accounting transactionsoutside the IT system onthe integrity of theaccounts along with thefinancial implication, ifany, may be stated.

1 In case of Holding Company, Yes, the Company hasa well laid out advanced IT system in place to processall accounting transactions through the same.

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, All the accountingtransactions are processed through IT system.In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, The company ishaving IT system in place for processing all accountingtransactions. Based on our verification, no accountingtransaction is being recorded / processed other thanthrough the IT system in place.

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, According to information andexplanation provided to us, the company has systemin place to process accounting transactions through ITsystem.

We have reviewed the design, implementation andoperating effectiveness of company's basic IT Controlsincluding application, access control on a test checkbasis that are critical to financial reporting.However, company has used different software/modules for various business activities/financialtransactions which needs to be interlinked andintegrated for effective internal control.

NIL


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- IFAS (i-Financial Accounting System) web baseoperating system along with Fixed AssetsRegister.

- IAS (Inventory Accounting System) in In-housedeveloped web application and MAGNUMSoftware

- Customer Billing in the Utility Billing Application

- Pay Rolls and Payment to Vendors in E-UrjaModule

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, The company is having IT systemin place for processing all accounting transactions.Based on our verification, no accounting transaction isbeing recorded / processed other than through the ITsystem in place.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, Yes, the Company processesall the accounting transactions through IT System.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, Yes, the Company has in placeERP Software package to process all accountingtransactions.

2 Whether there is anyrestructuring of anexisting loans or cases ofwaiver/write off of debts /loans / interest etc. madeby a lender to theCompany due to theCompany's inability torepay the loan? If yes, thefinancial impact may bestated

In case of Holding Company, No.

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, No

In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, According to theinformation and explanations given to us, there is norestructuring of an existing loan and there are no casesof waiver / write off of debt / loan / interest made by alender to the company due to company's inability torepay the loan.

NIL


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In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, No

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, According to the information andexplanations given to us, there is no restructuring of anexisting loan and there are no cases of waiver / writeoff of debt / loan / interest made by a lender to thecompany due to company's inability to repay the loan.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, No, there is no any restructuringof existing loan or cases of waiver / write off of debts /loans / interest etc. due to the Company's inability torepay the loan.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, There are no cases of restructuringof loans or waiver of debts / loan / interest etc. duringthe year.

3 Whether funds received/receivable for specificschemes from Central/StateAgencies were properlyaccounted for/utilized asper its term andconditions?List the cases ofdeviation.

In case of Holding Company, Yes.

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, Yes.

In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, According to theinformation and explanation given to us, the Companyhas received the funds from Central Government / StateGovernment through GUVNL towards Capital Grantand Equity Contribution for development oftransmission infrastructure in specified schemes andthe same has been properly accounted for / utilized asper the terms and conditions of sanction and nodeviation is found.

In case of Subsidiary Company, Dakshin Gujarat

NIL


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In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, To the best of our knowledge andaccording to the information and explanations given tous, Government of Gujarat (GoG) disburses CapitalGrant and subsidies in the form of different scheme forthe distribution network infrastructural development inthe rural and urban areas.

Every year Government gives targets forimplementation of various schemes. On the basis ofdata derived from MIS reports obtained from technicaldepartment of MGVCL, amount for physical targetsachieved under various schemes are finalized.Accordingly, scheme wise Certificates for GrantUtilization are prepared and submitted to the HoldingCompany GUVNL for necessary submission with GoG.

During the year company has properly accounted forand utilized the funds received in the form of Grant /Subsidies as per its terms and condition and nodeviation is found in our observation so far.

explanations given to us, Grants received during theyear for specific schemes from Central / State Agencieswere properly accounted for / utilised as per the termsand conditions. However, following table shows thefactual representation of grants which are pending tobe utilized as at 31.03.2020:

Particulars in Lakhs

Solar Home light Grant 584.47

Solar AG pump set 2857.25

Surya Gujarat grant 1523.00


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In case of Subsidiary Company, Paschim GujaratVij Company Limited, Yes, the funds received forspecific schemes from Central / State agencies havebeen properly accounted for and utilized as per its termsand conditions.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, During the year, the Company hasproperly accounted for and utilized funds received by itunder various applicable schemes from Central / Stateagencies.

4 Adequacy of steps toprevent encroachment ofidle land owned byCompany may beexamined. In case land ofthe Company isencroached, underlitigation, not put to usedeclared or surplus,details may be provided

In case of Holding Company, Not applicable

5 Whether land acquisitioninvolved in setting up newprojects, report whethersettlement of dues doneexpeditiously and in atransparent manner in allcases. The case ofdeviation may please bedetailed.

In case of Holding Company, Not applicable

6 Whether the Companyhas an effective systemfor recovery of revenue as

In case of Holding Company, Yes.


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7 How much cost has beenincurred on abandonedprojects and out of thishow much cost has beenwritten off?

In case of Holding Company, Not applicable.

B. Sector Specific Consideration

1 Has the company enteredinto agreements withfranchise for distribution ofelectricity in selectedareas and revenuesharing agreementsadequately protect thefinancial interest of thecompany?

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, No, During the financial year 2019-20, company has not entered into any revenue sharingagreement with franchise for distribution of electricity.

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, The company has neither enteredinto any agreements with franchise for distribution ofelectricity nor for revenue sharing.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, In past, efforts were made toengage franchisee for distribution of electricity for highloss areas by giving advertisement. However, noagency came forward and hence no such agreementhas been made.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, The Company has not entered intoany agreement with franchisees for distribution ofelectricity.

per contractual terms andthe revenue is properlyaccounted for in the booksof accounts in compliancewith the applicableAccounting Standards.


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2 Report on the efficacy ofthe system of billing andcollection of revenue inthe company.

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, During the course of Audit onsample basis, we have noticed that bills were issued tothe consumers in time and collections have beengenerally received in timely manner.

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, The Company comprises twocategories of consumers i.e. HT and LT consumers:

The HT category consumers are billed and maintainedat divisional level. The meter readings are collected bythe Deputy / Junior Engineers physically visiting thepremises. Moreover, the high valued consumersconnections are equipped with AMR based meters,which are monitored regularly from division offices byengineers and also readings are fetched from thosemeters for the monthly billing purpose. Meter readingactivity, bill preparation and serving of bill is carried outregularly from 15th to 18th of the month for normalconsumers. In case of open access consumers, billingis done on the 1st of the every month by division offices.

The billing activity of LT category consumers are mainlybifurcated in two parts, i.e. monthly billing (low tensionhigh valued customers) and bi-monthly billing (LTresidential and other low valued category consumers).The billing activity is carried out by trained meterreaders. The billing activity of LT consumers are carriedout between 20th and 10th of the next month. The billsare served to the consumers on the spot only, by themeter readers. Such spot billing method results intosaving in time, money and energy and also entails earlyrealization of revenue by 5-7 days. Also, the companyhas initiated the GPRS mobile based spot billing, inwhich the energy bills are calculated automatically


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through computerized program and calculated bill dataare transferred through GPRS based servers to mobilePDA of meter readers and a print out of calculated billis generated and served to the consumer on the spot,which ensures the correctness of energy billcalculations. As explained by the management, thecompany has initiated the process of endowing themobile PDA GPRS based devices of all the Sub-Divisions. Moreover, to ensure the correctness of meterreadings, every month the meter readers areinterchanged within one Sub-Division, i.e. if a meterreader has carried out the meter reading activity in aparticular area this month, then in next month othermeter reader will be performing the billing activity ofthat particular area. This ensures automatic crossverification of opening and closing meter readings.

To improve the efficacy of collection of revenue, thecompany has made arrangements in system so thatany consumer of any sub division can pay his energybill at any sub division / division / circle / corporate office.Moreover, company has provided collection rights topost offices, private cash collection agencies, e-grampanchayats and also has provided facility of any timepayment (ATP Kiosks and various ATMs of Banks).Also company has provided online payment optionson its website as well as on various banks and paymentwallets websites, where consumers can pay their billsonline from any place through Credit Card / Debit Card/ Net banking facilities. The Company also conductsdisconnection drives, arranges for the LOK-ADALATsfor pending disputed arrears regularly to improvecollection efficacy.


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In case of Subsidiary Company, Paschim GujaratVij Company Limited, On random verification we havenoticed that bills were issued to the consumers and acollection has been achieved in timely manner.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, The consumer base comprises oftwo categories i.e. HT and LT Consumers:

In HT Billing, billing (meter reading, bill preparation andserving the bill) is done from 15th to 18th of the monthfor normal consumers. In case of Open accessconsumers, billing is done on 1st of the next month byDivision offices.

Due to huge numbers of consumers in LT category, LTBilling is bifurcated in two way i.e. monthly billing cycleand bi-monthly billing cycle. Meter reading in Monthlybilling cycle is carried out from every 15th to 20th of themonth & in bi-monthly billing cycle, meter reading iscarried out from every 21st of month to 10 th ofsucceeding month. After collection of meter readingdata, bill printing process is carried out and bills areserved to the consumers by sub-division offices.

To improve Collection, the Company has madearrangements with post offices, private cash collectionagencies, e-gram panchayat’s and also provided facilityof net banking to facilitate payment of bills to theconsumers. The Company also conduct disconnectiondrive, arrange LOK ADALAT for pending disputedarrears to improve collection efficiency.

Whether tamper proofmeters have beeninstalled for allconsumers? If not

3 In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, As per the information andexplanation provided to us, company has installedtemper proof energy meters for all the Consumers


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then, examine howaccuracy of billing isensured.

except for agriculture unmetered consumers.

The company has considered all installed meters astamper proof energy meters since all meter-boxes areduly sealed.

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, Company has installed 31,58,331numbers of tamper proof static meters out of total32,69,003 numbers of consumers as on 31-03-2020(96.61%).The details of installations of tamperproofstatic meters for various categories of consumers is asbelow:

Categoryof

consumer

Noof

Consumers

No. ofElectro-

MechanicalMeters

No. ofElectronic

Meters(Static)

% ofStaticMeters

Installa-tion

Residential 26,93,137 84,854 26,08,283 96.85%

GLP 24,881 - 24,881 100.00%LT IndustrialandCommercial 3,37,387 - 3,37,387 100.00%

HT Industrial 2,292 - 2,292 100.00%

PublicLighting 8,577 - 8,577 100.00%Agriculture 1,78,873 - 1,53,055 85.57%Public WaterWorks 23,856 - 23,856 100.00%

Total 32,69,003 84,854 31,58,331 96.61%

From the above table, it is clear that tamperproof staticmeters have been installed for all consumers (100%)in case of consumer's category GLP, HT Industrial,Public Lighting and Public Water Works consumers. In


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case of Residential consumers, the process of replacingthe existing electro mechanical meters with tamperproofmeters is continued and 26,08,283 Nos. of tamperproofstatic meters have been installed out of total 26,93,137Nos. of Residential consumers.

Further, in case of Agricultural consumers, 25,818 Nos.are of the category of AG unmetered consumers, forwhich GERC has ordered separate Flat rate HP basedtariff.

In order to ensure accuracy of billing, company hastaken the following measures:-

1. It is ensured that all the meters (either Static orElectro-Mechanical) are properly housed andcovered by Metal Meter Boxes or by SMC Boxes.Also, this boxes are sealed with a specializedplastic seals to avoid direct access to the basicmeters.

2. The company’s meter readers, who used to takeregular visits of consumers installations duringtheir regular spot billing programs, are instructedto examine and observe the physical status ofmeters especially for reporting as to broken seals,tampered meter boxes, faulty meters, burntmeters, zero consumption meters, overconsumption meters, locked premises etc. onregular basis for reporting to their concerned subdivisional heads. On the basis of meter readersreport, the corrective actions are immediatelyinitiated by the Deputy Engineer of concerned subdivision to ensure accuracy of metering.

3. The Company also arranges surprise theftchecking drives periodically and the meter


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installations are being checked for tampering.Sub-divisional theft drives are done twice in aweek, to ensure the minimum theft of electricity.Mostly the areas comprising of high loss feedersare targeted.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, Yes, the company has installedmeters for all consumers except “unmetered agriculturalconsumers”. The meters are installed after accuracytest of energy meter in meter testing laboratory, meterbody seals are provided and these energy meters areinstalled in tamper proof meter box and such meter boxis duly sealed by the Company.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, The Company is having total36,89,883 nos. of Consumers as on 31-03-2020. Outof the same 35,37,854 nos. of Consumers are meteredand 1,52,029 nos. of Consumers are un-metered. Forall the metered consumers as stated above theCompany has installed the static meters and electromechanical meters. For remaining 1,52,029 nos. ofconsumers tariff is charged on the basis of contract loadwhich is approved by GERC.

Whether the Companyrecovers and accounts,the State ElectricityRegulatory Commission(SERC) approved Fueland Power PurchaseAdjustment Cost(FPPCA)?

4 In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, Yes.

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, Yes, based on approval of FPPCAformula by GERC on quarterly basis, the additionalFPPCA charges are levied or rebate is given insubsequent billing cycles to all the consumers.


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The FPPCA additional charges are being assessedthrough computerized system and are duly debited /refunded in consumers account. The FPPCA being atariff item, the additional charges calculated is alsoaccounted automatically along with other tariff items inthe books of accounts. Moreover, the additional FPPCAcharges are being proportionately calculated from itsdate of effectiveness.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, Yes, the company hasrecovered and accounted Fuel and Power PurchaseAdjustment cost during the financial year 2019-20.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, Based on approval for FPPAC byGERC on quarterly basis, the company recovers andaccounts the same in subsequent billing cycles to allconsumers.

5 Whether the reconciliationof receivables andpayables between thegeneration, distributionand transmissioncompanies has beencompleted. The reasonsfor difference may beexamined.

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, Yes. The receivables and payablebetween DGVCL & fellow subsidiary companies andHolding company is reconciled and duly confirmed ason 31.03.2020.

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, The receivables and payablesbetween the generation, transmission and distributioncompanies has been reconciled and confirmed by eachof the associate companies.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, Yes, The receivables andpayable between PGVCL & fellow subsidies / holdingcompanies are reconciled and duly confirmed as on31.03.2020.


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In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, The receivables and payablesbetween the generation, transmission and distributioncompanies has been reconciled and confirmed by eachof the associate company. The confirmations are alsosought for amount payable for purchase of power fromwind farm and solar energy suppliers.

6 Whether the Company issupplying power tofranchisees, if so, whetherthe Company is notsupplying power tofranchisees at below itsaverage cost of purchase.

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, Not Applicable

In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, The company has no franchiseesfor distribution of power.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, Not Applicable.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, The Company has no franchiseesfor distribution of power.

7 How much tariff roll backsubsidies have beenallowed and booked in theaccounts during the year?Whether the same isbeing reimbursedregularly by the StateGovernment shortfall ifany may be commented?

In case of Subsidiary Company, Dakshin Gujarat VijCompany Limited, During the year, following subsidieshave been recognised in the books of accounts basedon the allocation given by the Holding CompanyGUVNL:

1. AG-Tariff compensation - 4244.35 Lakhs

2. AG- Subsidy of FPPPA - 16662.94 Lakhs

3. Water Works Subsidy - 7836.93 Lakhs

The claim of the subsidy has been made by GUVNL,Holding Company on behalf of all the distributioncompanies. The claim of subject subsidy is reportedand presented in the books of GUVNL itself and hencewe are not able to comment on the short fall of thesubsidy, if any.


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In case of Subsidiary Company, Madhya Gujarat VijCompany Limited, During the year, the following tariffsubsidies have been recognized in the books ofaccounts as per budgetary allocation made by GoG asper details as under:

Sr. No Particulars

1 GERC Tariff compensation 4,916.58

2 FPPPA Subsidy 23,420.11

3 Water Works Subsidy 9,041.06

4 H. P. Based Subsidy 6,257.72

Total 43635.47

The GUVNL, on behalf of MGVCL deals with the GoGin respect of subsidy claims. The claim of subjectsubsidies are reported and presented in the books ofGUVNL itself and hence we are not able to commenton the short fall of subsidy, if any.

In case of Subsidiary Company, Paschim GujaratVij Company Limited, During the year, followingsubsidies have been recognised in the books ofaccounts based on the allocation given by the HoldingCompany GUVNL:

Sr. No Subsidy Received

1 Agriculture (HP based) 39541.62

2 Tariff Compensation 46146.18

3 FPPPA Subsidy 149520.13

4 Energy Conservation 32.20

5 Water Works 23783.85

6 Research & Development 19.90

Amount( in Lakhs)

Amount( in Lakhs)


223


The claim of the subsidy has been made by GUVNL,Holding company on behalf of all the distributioncompanies. The claim of subject subsidy is reportedand presented in the books of GUVNL itself and hencewe are not able to comment on the short fall of thesubsidy, if any.

In case of Subsidiary Company, Uttar Gujarat VijCompany Limited, During the year, Company hasbeen allocated following subsidies for Agriculture andWaterworks (Gram Panchayats) consumers throughHolding Company GUVNL:

Particulars

Agriculture - Tariff Compensation 62,924.76

Agriculture subsidy for FPPPA 1,90,635.97

HP based Subsidy 50,583.49

Waterworks (Gram Panchayats) 28,259.59

Total 3,32,403.81

Amount( in Lakhs)

The claim of the subsidy has been made by the GUVNL,Holding Company on behalf of all the distributioncompanies. The claim of subject subsidy is reportedand presented in the books of GUVNL itself and hence,we are not able to comment on the shortfall of thesubsidy, if any.

8 Is the system ofevacuation of powercommensurate withpower available fortransmission with thegenerating Company? Ifnot, loss, if any, claimed

In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, GETCOtransmission network is available for evacuation ofpower from each generating stations under normaloperating conditions. In peculiar grid operatingconditions like high renewable energy injection duringoff peak load conditions, few wind farms have beenasked to back down their generation in few rare cases.


224


by the generatingcompany may becommented.

Such back down instruction are being given by SLDClooking in to real time loading of associated networkelements and grid security. There are no provisions forcompensating such kind of losses due to back down ofgeneration asked by SLDC to maintain grid stability andsecurity.

9 How much transmissionloss in excess ofprescribed norms hasbeen incurred during theyear and whether thesame been properlyaccounted for in the booksof accounts?

In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, As perinformation and explanation provided to us,transmission loss during the year 2019-2020 was3.68%, which is lower than the target submitted by theCompany. As per information and explanation given tous, such transmission losses are already considered /accounted while finalizing the revenue fromtransmission charges for financial year 2019-2020.

10 Whether the assetsconstructed andcompleted on behalf ofother agencies andhanded over to them hasbeen properly accountedfor in the financialstatements?

In case of Subsidiary Company, Gujarat EnergyTransmission Corporation Limited, Properaccounting is done in the cases where the assetsconstructed and completed don behalf of other agenciesand handed over to them.

11 In cases of ThermalPower Projects,compliance of the variousPollution Control Acts andthe impact thereofincluding utilization anddisposal of ash and thepolicy of the company inthis regard, may be

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, The company hasgenerally complied with the various Pollution ControlActs and there is no financial impact thereof during theyear.As per the information and explanation given to us,during the year 100% fly ash utilization is achieved inall thermal power stations (TPS) except in Ukai andBhavnagar Lignite TPS. As per the MoEF notification,

Impacttaken intoaccount inthe financialstatements


225


11 checked and commentedupon.

the company has transferred 1,314.82 lakhs relatedto fly ash sale income of Ukai and Bhavnagar LigniteTPS to Fly Ash Utilization Reserve Fund.

12 Has the company enteredinto revenue sharingagreements with privateparties for extraction ofcoal at pitheads and itadequately protects thefinancial interest of thecompany?

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, No

Nil

13 Does the company havea proper system ofreconciliation of quantity /quality of coal orderedand received and whethergrade of coal / moistureand demurrage etc., areproperly recorded in thebooks of accounts?

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, Yes

Nil

How much share of freepower was due to theState Government andwhether the same wascalculated as per theagreed terms anddepicted in the accountsas per acceptedaccounting norms?

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, During the year underaudit, no share of free power was due to the StateGovernment.

Nil14


226


15 In the case ofHydroelectric Projects,the water discharge is asper policy / guidelinesissued by the StateGovernment to maintainbiodiversity. For notmaintaining it penalty paid/ payable may bereported.

In case of Subsidiary Company, Gujarat StateElectricity Corporation Limited, As per informationand explanation given to us, there is no discharge ofwater by the company in case of Hydroelectric Projects.

Nil


DGSM & Co.



Sd/-


Partner


UDIN:20144245AAAAPH4357

Place: Ahmedabad

Date: 10.11.2020

227


Annexure – IDetails of clear title / lease deed for freehold and leasehold property.1. Balance Transferred from erstwhile Gujarat Electricity Board (GEB) on 01st April, 2005

Government of Gujarat, vide notification NO. GHU-2006-91-GUV-1106-590-K dated 3rd October 2006notified the final opening Balance Sheet of the 7 Companies as on 1st April 2005, whereby certainassets and liabilities of the erstwhile Gujarat Electricity Board (GEB) has been transferred to theCompany, DGVCL. As informed to us, the company has received value of Land & Land Rights of

31.11 Lakhs and Building of 421.81 Lakhs as on 1st April 2005 vide the said notification.

As informed to us, the procedure for the registration and/or transfer in the name of the company is stillin progress and hence, we are unable to comment on the title deed of the subject properties.

2. Land and Land Rights Purchased/Acquired on or after 01st April, 2005

The management of the company has provided following documents in respect of Land & LandRights Purchased/Acquired by the company after 01st April, 2005 –

Name of Divisions in whichLand & Land Rights Reflected

Amount( In Lakhs)

Remarks

Bardoli (O & M) 13.55 Land Allotment Order by Collector for Constructionof office Building

Ankleshwar Industrial 35.59 Land Allotment Letter from GIDC

Vapi (O & M) 15.58 Land Allotment Order by Collector for Constructionof office Building

Surat City Circle 850.00 Land Allotment letter from Collector

Surat Urban 39.09 Land Allotment Order by Collector for Constructionof office Building

Rander 325.55 Land Possession Receipts from Surat MunicipalCorporation

Rander 226.35 Land Allotment Letter from Surat MunicipalCorporation

Piplod 411.56 Land Allotment letter from Collector

Vapi Industrial Division 26.41 Lease deed from GIDC

Kadodara (O & M) 301.36 Land Allotment Order by Collector for Constructionof office Building


228


However, as informed to us, the company does not have any registered sale deed/transfer deed/conveyance deed in respect of aforesaid Land and Land Rights and hence, we are unable to commenton the title deed of the subject properties.

3. Buildings Constructed / Acquired on or after 01st April, 2005

As per the information and explanation provided by the management, all the existing buildings of thecompany are constructed (not purchased) on the land either acquired/purchased by the companyitself or allotted by erstwhile GEB (now GUVNL) and its group companies.


Sr. No Cirlce

1 S'nagar Div Store 3347/1 Free Hold 160.68

2 Rajkot City Mahila College Sub Division 1263 Free Hold 59.03

3 Botad Circle Office 861 Free Hold 150.50

Name of Premises Survey No. Lease Holdor

Free Hold

Gross BlockAmount

( in Lakhs)

Annexure-II

List of Title Deeds not held in the name of PGVCL.

229


Sr. No Name of Offices

1. Sabarmati O&M Division 8.01

2. Bavala O&M Division 4.89

3. Gandhinagar O&M Division 2.11

4. Kalol O&M Division 0.49

5. Modasa O&M Division 0.54

6. Idar O&M Division 2.01

7. Talod O&M Division 0.36

8. Himmatnagar O&M Division 0.27

9. Mehsana O&M Circle 0.24

10. Kadi O&M Division 0.51

11. Mehsana O&M Division 0.32

12. Patan O&M Division 0.93

13. Vijapur O&M Division 1.47

14. Visnagar O&M Division 0.53

15. Deesa O&M Division 0.81

16. Radhanpur O&M Division 0.39

17. Palanpur-II Division 0.84

Details of land of which the account balanceshave been transferred as per GoG Notification

No. GHU-2006-91-GUV-1106-590-K dated03.10.2006 to Company (UGVCL) and are heldin the name of the erstwhile GEB. ( in lakhs)

Sub Annexure-II to Annexure “C” to Auditor's Report

Sub Annexure-III to Annexure “C” to Auditor's Report (GETCO)

Particulars

Leasehold In the name of GETCO 13 10,112.34Land In the name of Others 5 5,096.17

Freehold In the name of GETCO 50 20,641.18Land In the name of Others 63 19,801.07

NumberGross Block

as on 01.04.2019( in Lakhs)


230


ASSETS

(1) Non-Current Assets(a) Property, Plant and Equipment 2 62,79,293.24 56,44,230.15(b) Intangible Assets 2 1,095.09 1,441.03(c) Capital Work-In-Progress 3 6,55,187.59 9,45,601.36(d) Intangible Assets Under Development 4 75.28 75.28(e) Financial Assets

(i) Investments 5 1,23,407.03 1,22,584.51(ii) Loans 6 11,013.71 11,323.05(iii) Other Financial Assets 7 44,017.32 30,336.21(f) Other non-current assets 8 21,996.87 16,020.67

Total Non-Current Assets 71,36,086.13 67,71,612.26(2) Current Assets

(a) Inventories 9 4,13,428.47 3,86,277.97(b) Financial Assets

(i) Trade Receivables 10 3,98,989.63 3,35,883.53(ii) Cash and cash equivalents 11 19,653.65 35,761.20(iii) Other Bank Balances 12 4,126.21 3,028.07(iv) Loans 13 3,754.94 5,356.53(v) Other Financial Assets 14 3,12,788.10 4,31,882.57(c) Current Tax Assets (net) 15 44,977.92 46,796.26(d) Other Current Assets 16 1,34,352.99 75,430.93(e) Assets classified as held for sale 17 13,824.85 6,398.12

Total Current Assets 13,45,896.77 13,26,815.18 Total 84,81,982.90 80,98,427.44

EQUITY AND LIABILITIESEquity

(a) Equity Share Capital 18 22,34,781.20 19,77,222.21(b) Other Equity 19 8,83,148.27 6,75,566.03

Non-controlling Interests 0.00 10,376.19Total Equity 31,17,929.48 26,63,164.43Deferred Government grants, subsidies & consumer contributions 20 9,05,101.60 8,53,064.03

Particulars NoteNo.



Consolidated Balance Sheet as at 31st March, 2020 ( in Lakhs)


231


Liabilities(1) Non-Current Liabilities

(a) Financial Liabilities(i) Borrowings 21 9,18,633.52 14,08,647.34(ii) Trade Payables 22

- Dues to Micro and Small Enterprises - -- Dues to other than Micro and Small Enterprises 85.29 85.29

(iii) Other Financial Liabilities 23 6,96,416.26 6,23,382.61(b) Provisions 24 1,50,974.31 1,42,989.49(c) Deferred Tax Liabilities (Net) 25 1,95,802.86 1,70,680.98(d) Other Non Current Liabilities 26 2,99,543.17 2,42,213.63

Total Non-Current Liabilities 22,61,455.42 25,87,999.34(2) Current Liabilities

(a) Financial Liabilities(i) Borrowings 27 24,019.48 35,563.42(ii) Trade payables 28

- Dues to Micro and Small Enterprises 1,014.09 1,322.95- Dues to other than Micro and Small Enterprises 10,53,177.64 7,04,147.27

(iii) Other Financial liabilities 29 9,86,541.08 10,71,633.29(b) Other current liabilities 30 1,18,013.81 1,54,217.77(c) Provisions 31 14,730.29 27,314.81(d) Current Tax Liabilities (net) 32 - 0.12

Total Current Liabilities 21,97,496.40 19,94,199.64

Total 84,81,982.90 80,98,427.44Significant Accounting Policies and Notes to 1-71Financial Statements

As per our Report of even date attachedFor DGSM & Co.Chartered AccountantsFirm Registration No. 101606W







Place : GandhinagarDate : November 10, 2020



Sd/-(PARTHIV BHATT)

Company Secretary



232


Consolidated Statement of Profit and Loss for the year ended 31st March, 2020

Particulars NoteNo.



I Revenue from operations 33 52,63,462.87 49,71,935.08II Other Income 34 1,30,927.11 1,30,404.54III Total Income (I+II) 53,94,389.98 51,02,339.62IV EXPENSES

Cost of Fuel consumed 35 6,73,866.15 8,92,736.67Purchase of Power 36 33,59,336.31 30,78,749.64Employee Benefits Expense 37 3,70,429.42 3,38,372.31Finance Costs 38 1,48,389.18 1,65,960.39Depreciation, Amortization and impairment Expense 2 4,08,429.70 3,65,183.95Other Expenses 39 2,15,129.32 1,75,644.56Total Expenses (IV) 51,75,580.09 50,16,647.51

V Profit Before Exceptional items and Tax (III-IV) 2,18,809.89 85,692.11VI Exceptional Items 40 (3,073.28) (4,364.89)VII Profit before share of net profits of associate

and joint venture accounted for usingequitymethod and tax (V-VI) 2,21,883.17 90,057.00

VIII Share of Profit of Joint Venture - -IX Share of Profit of Associate 6,654.98 6,836.11X Profit before tax (VII+VIII+IX) 2,28,538.15 96,893.11XI Tax Expense: 41

(a) Current Tax 39,875.19 13,251.91(b) Deferred Tax 32,748.58 (16,005.43)

XII Profit for the Year (X-XI) 1,55,915.09 99,646.62XIII Other Comprehensive Income (OCI)

(a) Items that will not be reclassified to Profit and Loss

(i) Re-measurement of the Defined Benefit Plans (33,750.68) (25,198.39)(ii) Equity Instruments through OCI (4,457.48) 2,672.36Less:- tax impact 7,808.77 6,387.34

( in Lakhs)


233


(iii) Share of other comprehensive income ofassociates accounted for using the equitymethod (476.95) (421.08)

(b) Items that will be reclassified to profit or loss(i) Financial assets measured through OCI 521.04 35.83- tax impact (182.07) (12.52)Total of Other Comprehensive Income (OCI) (XIII) (30,537.36) (16,536.46)

XIV Total Comprehensive Income for the Year (XII+XIII) 1,25,377.73 83,110.16Profit for the Year attributable to:- Owners of Equity 1,55,915.09 99,034.02- Non Controlling Interests 0.00 612.60

1,55,915.09 99,646.62Other Comprehensive Income attributable to:- Owners of Equity (30,537.36) (16,466.22)- Non Controlling Interests (0.00) (70.25)

(30,537.36) (16,536.46)Total Comprehensive Income for the Yearattributable to:- Owners of Equity 1,25,377.73 82,567.81- Non Controlling Interests 0.00 542.35

1,25,377.73 83,110.16XV Earnings Per Equity Share : 42

Basic (in ) 0.74 0.56Diluted (in ) 0.73 0.56See accompanying Notes to the Financial Statements 1-71












Sd/-(PARTHIV BHATT)

Company Secretary



234


Consolidated Cash Flow Statement for the year ended 31st March, 2020

Particulars For the year ended 31st March, 2019


[A] CASH FLOW FROM OPERATING ACTIVITIESNet Profit before tax 2,28,538.15 96,893.11Adjustments to reconcile profit before tax to net cash flows:Non-Cash Items 4,09,349.21 3,65,368.91Non Operating Items 61,917.74 84,191.00Remeasurement of Defined Benefit Plan (33,750.68) (25,198.39)Operating Profit/(Loss) before changes in Working Capital 6,66,054.42 5,21,254.62Working capital adjustments:(Increase)/ Decrease in Non Current / Current Assets:Inventories (27,150.50) (1,05,900.91)Trade receivables (63,225.76) (21,093.52)Other financials assets 1,07,546.92 12,359.03Other non financial assets (63,320.56) (3,445.81)Increase / (Decrease) in Non Current / Current Liabilities:Trade Payables 3,48,721.51 67,002.60Other Financial Liabilities 87,427.64 (58,766.27)Other Non Financial Liabilities & Provisions 16,525.89 2,13,154.13

10,72,579.57 6,24,563.88Cash Flow from operations after changes in Working CapitalIncome tax (paid)/ Refund (38,057.43) (33,159.83)Net cash flows from operating activities (A) 10,34,522.13 5,91,404.05

[B] CASH FLOW FROM INVESTING ACTIVITIESPurchase of property, plant and equipment (including CWIP) (7,78,661.44) (8,19,301.96)Sale/Adj. of fixed assets 18,362.62 1,329.82Dividend from Associate 1,177.12 1,095.94Dividend Income 339.67 297.01Interest received (finance income) 3,147.00 5,139.44Asset not in use (4,353.46) 9,280.16Bank Balances not considered as Cash and Cash Equivalents (1,159.17) 10,423.10Net cash flows used in investing activities (B) (7,61,147.65) (7,91,736.49)

( in Lakhs)


235


[C] CASH FLOW FROM FINANCING ACTIVITIESProceeds from Issue of Shares/Share Application Money 3,28,592.67 2,76,709.20Changes on account of Business combination (refer note 65) - 2,400.00Deferred Govt. Grants, Subsidy & Contributions 1,37,926.84 1,65,816.27Principal payment of Lease liabilities (29.69) -Proceeds / (Repayment) from borrowing (net) (5,87,620.29) (1,89,874.33)Interest & financial charges (1,68,351.57) (1,94,319.57)Net cash flows from/(used in) financing activities (C ) (2,89,482.04) 60,731.58Net increase/ (decrease) in cash and cashequivalents (A+B+C) (16,107.56) (1,39,600.86)Cash and cash equivalents at the beginning of the year 35,903.27 1,75,504.12Cash and cash equivalents at year end 19,795.72 35,903.27Notes:

1 Cash & Bank Balances consists of the following:Cash & Cash Equivalentsa. Balances with Banks 16,441.69 22,725.63b. Cash on hand 79.89 1,164.08c. Cheques on hand 1,155.21 5,798.64d. Remittance in Transit 2,050.39 4,652.97e. Deposits with banks 68.54 1,561.95

Closing Cash & Cash Equivalents 19,795.72 35,903.272 The Cash Flow Statement has been prepared under the ‘Indirect Method’ set out in Indian Account

ing Standards (Ind AS) - 7 “Statement of Cash Flows”3 Figures of the previous year have been regrouped / reclassified wherever necessary.












Sd/-(PARTHIV BHATT)

Company Secretary



236


Consolidated Statement of Changes in Equity (SOCIE)for the year ended on 31st March, 2020

Equity Share Capital

Particulars Total

Balance as on 1st April, 2018 16,22,754.99 1,250.00 16,21,504.99Changes during the year 3,54,467.22 - 3,54,467.22Balance as on 31st March, 2019 19,77,222.21 1,250.00 19,75,972.21Changes during the year 2,57,558.99 (1,250.00) 2,58,808.99Balance as on 31st March, 2020 22,34,781.20 - 22,34,781.20

( in Lakhs)

Non ControllingInterests

Equity attributableto Owners


237



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CONSOLIDATED FINANCIAL STATEMENTS FOR THEYEAR ENDED 31st March, 2020

1. Corporate Information and Significant Accounting Policies:

A. Corporate and Group information

Gujarat Urja Vikas Nigam Limited ('GUVNL' or 'the Company') is a wholly owned undertaking ofGovernment of Gujarat, incorporated on 22.12.2004 as a Public Limited Company; domiciled andincorporated in India having its registered office at "Sardar Patel Vidyut Bhavan", Race Course,Vadodara, Gujarat -390007. The Consolidated Financial Statements relate to the Company and itsSubsidiaries as follows:

(a) Gujarat State Electricity Corporation Limited engaged in generation of power;

(b) Gujarat Energy Transmission Corporation Limited engaged in transmission of power;

(c) Uttar Gujarat Vij Company Limited engaged in distribution of power;

(d) Dakshin Gujarat Vij Company Limited engaged in distribution of power;

(e) Paschim Gujarat Vij Company Limited engaged in distribution of power; and

(f) Madhya Gujarat Vij Company Limited engaged in distribution of power.

The Consolidated Financial Statements also include the Company's Associate viz. Gujarat IndustriesPower Company Limited and Joint Venture (JV) viz. Mahaguj Collieries Limited (JV of GSECL).

Government of Gujarat restructured Gujarat Electricity Board (“GEB”) effective 1st April 2005, as pervarious administrative and statutory actions to implement the Financial Restructuring Plan of GEBand split the business and activity thereof of Generation, Transmission and Distribution of electricityby demerger of the respective units and vested the same along with all its assets and liabilities(relating to the respective units) in various Companies, viz. the Holding Company and subsidiarieson functional basis and the balance (residual) assets were allocated to the Company.

B. Recent Accounting Pronouncements:

On 24th July 2020, the Ministry of Corporate Affairs (MCA) has issued amendments to certain Ind AS.The amendments are effective from annual reporting periods beginning on or after 1st April, 2020.However, with respect to Ind AS 116, in case a lessee has not yet approved the financial statementsfor issue before the issuance of the amendments, then the same may be applied for annual reportingperiods beginning on or after 1st April 2019.


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Following are the Indian Accounting Standards which have been amended on various issues witheffect from April 1st, 2020. The following amendments are relevant to the Group:

(a) Ind AS 1, Presentation of Financial Statements and Ind AS 8, Accounting Policies, Changes inAccounting Estimates and Error: Refined definition of term 'material'.

(b) Ind AS 103, Business Combinations: Revised definition of a 'business' and introduction of anoptional concentration test to permit a simplified assessment of whether an acquired set ofactivities and assets is not a business.

(c) Ind AS 109, Financial Instruments: Modification to some specific hedge accounting requirementsto provide relief to the potential effects of uncertainty caused by the interest rate benchmark(IBOR) reform.

(d) Ind AS 107, Financial Instruments Disclosure: Additional disclosures pertaining to interest ratebenchmark reforms.

(e) Ind AS 116, Leases: Practical expedient which permits lessees not to account for COVID-19related rent concessions as a lease modification.

None of these amendments are expected to have any material effect on the Company's financialstatements.

C. Significant Accounting Policies

1. Statement of Compliance

These financial statements are prepared in accordance with Indian Accounting Standards ("Ind AS"),under Section 133 of the Act read together with the Companies (Indian Accounting Standards) Rules,2015 as amended except in so far as the said provisions are inconsistent with the provisions of theElectricity Act, 2003.

2. Basis of Measurement

The consolidated financial statements have been prepared on the historical cost convention and asper accrual method of accounting except for certain financial instruments that are measured at fairvalues at the end of each reporting period and defined benefit plans which have been measured atactuarial valuation as required by the relevant Ind AS as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goodsand services.


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As the operating cycle cannot be identified in normal course due to the special nature of industry, thesame has been assumed to have duration of 12 months. Accordingly, all assets and liabilities havebeen classified as current or non-current as per the Group's operating cycle and other criteria set outin Ind AS-1 'Presentation of Financial Statements” and Schedule III to the Companies Act, 2013.

The consolidated financial statements are presented in Indian Rupees ( ) which is the presentationcurrency of the Group and all values are rounded to the nearest lacs (up to two decimals) exceptwhen otherwise indicated.

Claims of suppliers/contractors for price variations are accounted for on its acceptance.

3. Fair Value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value measurement isbased on the presumption that the transaction to sell the asset or transfer the liability takes placeeither:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

All assets and liabilities for which fair value is measured or disclosed in the consolidate financialstatements are categorised within the fair value hierarchy, described as follows, based on the lowestlevel input that is significant to the fair value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair valuemeasurement is unobservable.

4. Principles of Consolidation

4.1. The consolidated financial statements incorporate the financial statements of the Company and itssubsidiaries (collectively referred as “the Group”). The Group has investments in joint venture andassociate which are accounted using equity method in these consolidated financial statements. ReferNote No. 4 for the accounting policy of investment in joint venture and associate in the consolidatedfinancial statements.


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Subsidiaries are entities controlled by the Company. The Company controls an entity when it isexposed or has rights to variable returns from its involvement with the entity and has the ability toaffect those returns through its power to direct the relevant activities of the entity. Subsidiaries areconsolidated from the date of their acquisition, being the date on which the Company obtains controland continue to be consolidated until the date that such control ceases.

The consolidated financial statements are prepared using uniform accounting policies consistentlyfor like transactions and other events in similar circumstances and are presented to the extent possible,in the same manner as the Parent's Standalone Financial Statements except otherwise stated. Whennecessary, adjustments are made to the financial statements of subsidiaries to bring their accountingpolicies into line with the Parent's accounting policies. The financial statements of all entities used forthe purpose of consolidation are drawn up to same reporting date as that of the Parent company, i.e.,year ended on 31st March, 2020.

The Consolidated Financial Statements have been prepared by combining the financial statementsof the company and its subsidiaries on a line-by-line basis by adding together the book values of likeitems of assets, liabilities, equity, income, expenses and cash flow after eliminating in full intra-groupassets, liabilities, equity, income, expenses and cash flow relating to intra-group transactions andunrealized profits. Unrealized losses are also eliminated unless the transaction provides evidence ofan impairment of the asset transferred.

Profit or loss and each component of other comprehensive income are attributed to the owners of theCompany and to the non-controlling interests. Total comprehensive income is attributed to the ownersof the Company and to the non-controlling interests even if this results in the non-controlling interestshaving a deficit balance.

Changes in the Parent's ownership interests in subsidiaries that do not result in the Parent losingcontrol over the subsidiaries are accounted for as equity transactions. The carrying amounts of theParent's interests and the non-controlling interests are adjusted to reflect the changes in their relativeinterests in the subsidiaries. Any difference between the amount by which the non-controlling interestsare adjusted and the fair value of the consideration paid or received is recognised directly in equityand attributed to the owners of the Company.

When the Parent loses control of a subsidiary, a gain or loss is recognised in the consolidated statementof profit and loss and is calculated as the difference between (i) the aggregate of the fair value of theconsideration received and the fair value of any retained interest and (ii) the previous carrying amountof the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interests. Allamounts previously recognised in other comprehensive income in relation to that subsidiary are


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accounted for as if the Parent had directly disposed of the related assets or liabilities of the subsidiary(i.e. reclassified to the consolidated statement of profit and loss or transferred to another category ofequity as specified/permitted by applicable Ind AS). The fair value of any investment retained in theformer subsidiary at the date when control is lost is regarded as the fair value on initial recognition forsubsequent accounting under Ind AS 109, or, when applicable, the cost on initial recognition of aninvestment in an associate or a joint venture.

4.2. Non-Controlling Interest

Non-controlling interests represent the proportion of income, other comprehensive income and netassets in subsidiaries that is not attributable to the Parent's shareholders.

Non-controlling interests are initially measured at the non-controlling interests' proportionate share ofthe recognised amounts of the acquiree's identifiable net assets. Subsequent to acquisition, thecarrying amount of non-controlling interests is the amount of the interest at initial recognition plus thenon-controlling interests' share of subsequent changes in equity.

Non-controlling interests in the results and equity of subsidiaries are shown separately in theconsolidated statement of profit and loss, consolidated statement of changes in equity and balancesheet, respectively.

4.3. Goodwill on Consolidation

Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised, butit is tested for impairment annually, or more frequently if events or changes in circumstances indicatethat it might be impaired and is carried at cost less accumulated impairment losses. Gains and losseson the disposal of an entity include the carrying amount of goodwill relating to such entity.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation ismade to those cash-generating units or groups of cash-generating units that are expected to benefitfrom the business combination in which the goodwill arose.

A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that arelargely independent of the cash inflows from other assets or groups of assets.

4.4. Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence. Significant influence is thepower to participate in the financial and operating policy decisions of the investee but is not control orjoint control over those policies.


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A joint venture is a joint arrangement whereby the parties, that have joint control of the arrangement,have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharingof control of an arrangement, which exists only when decisions about the relevant activities requireunanimous consent of the parties sharing control.

The results and, assets and liabilities of associates or joint ventures are incorporated in the consolidatedfinancial statements using the equity method of accounting, except when the investment, or a portionthereof, is classified as held for sale, in which case it is accounted for in accordance with Ind AS - 105“Non-current Assets Held for Sale and Discontinued Operations”. Under the equity method, aninvestment in an associate or a joint venture is initially recognised in the consolidated balance sheetat cost and adjusted thereafter to recognise the Group's share of the profit or loss and othercomprehensive income of the associate or joint venture. When the Group's share of losses of anassociate or a joint venture exceeds the Group's interest in that associate or joint venture, the Groupdiscontinues recognising its share of further losses. Additional losses are recognized to the extentthat the Group has incurred legal or constructive obligation or made payment on behalf of the associateor joint venture.

An investment in an Associate or a Joint Venture is accounted for using the equity method from thedate on which the investee becomes an Associate or a Joint Venture. On acquisition of the investmentin an Associate or a Joint Venture, any excess of the cost of the investment over the Group's share ofthe net fair value of the identifiable assets and liabilities of the investee is recognised as goodwill,which is included within the carrying amount of the investment. Any excess of the Group's share ofthe net fair value of the identifiable assets and liabilities over the cost of the investment, afterreassessment, is recognised directly in equity as capital reserve in the period in which the investmentis acquired.

After application of the equity method of accounting, the Group determines whether there is any objectiveevidence of impairment as a result of one or more events that occurred after the initial recognition of thenet investment in an associate or a joint venture and that event (or events) has an impact on theestimated future cash flows from the net investment that can be reliably estimated. If there exists suchan objective evidence of impairment, then Group recognise impairment loss with respect to the Group'sinvestment in an associate or a joint venture. When necessary, the entire carrying amount of theinvestment (including goodwill) is tested for impairment in accordance with Ind AS 36 'Impairment ofAssets' as a single asset by comparing its recoverable amount (higher of value in use and fair value lesscosts of disposal) with its carrying amount, Any impairment loss recognised forms part of the carryingamount of the investment. Any reversal of that impairment loss is recognised in accordance with Ind AS36 to the extent that the recoverable amount of the investment subsequently increases.


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4.5. Disclosures

Significant Accounting policies and Notes to these Consolidated Financial Statements are intendedto serve as a means of informative disclosure and a guide for better understanding of the consolidatedposition of the Group. Recognizing this purpose, only such policies and notes from the individualfinancial statements have been disclosed which fairly represent the needed disclosures. Lack ofhomogeneity and other similar considerations made it desirable to exclude some of them, which inthe opinion of the management, could be better viewed when referred from the respective StandaloneFinancial Statements.

5. Significant Accounting Policies

5.1. Property, Plant & Equipment

Property, Plant & Equipment (PPE) comprises of Tangible Assets. PPE are stated at cost, duty creditavailed, if any, after reducing accumulated depreciation and accumulated impairment losses, if any;until the date of the Balance Sheet. The cost of PPE comprises of its purchase price or its constructioncost (net of applicable tax credit, if any), any cost directly attributable to bring the asset into thelocation and condition necessary for it to be capable of operating in the manner intended by themanagement and decommissioning costs. Directly attributable costs are capitalized until the asset isready for use and includes borrowing cost capitalised in accordance with the Group's accountingpolicy.

Transition to Ind AS: On transition to lnd AS, the Company has elected to continue with the carryingvalue of all of its property, plant and equipment recognised as at 1st April 2015, measured as per theprevious GAAP, and use the "carrying value" as the deemed cost of such property, plant and equipment.

In case of PPE for new projects, extension or renovation and modernization, the related expensesand interest cost up to Commercial Operation Date (COD) as per Power Purchase Agreement,attributable to such projects or expansions or renovation and modernization are capitalized. Expensesincurred during project implementation and on trial run are treated as incidental expenditure duringconstruction and are accordingly capitalized.

Land and Buildings held for use in the supply of goods or services, or for administrative purposes, arestated in the Balance Sheet at cost less accumulated depreciation and impairment losses, if any.Freehold land is not depreciated.

Capital Spares which can be used only in connection with an item of tangible assets and whose useis not of regular nature are capitalized at cost, as property plant and equipment and depreciated overthe residual useful life of the plant.


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Property Plant & Equipments also includes service equipments, at the time of initial recognition theGroup classifies these items as inventory. Subsequently these items are classified either in Property,Plant and Equipment through Capital Work in Progress or capitalised as service equipment.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materialsand direct labour, any other costs directly attributable to bringing the item to working condition for itsintended use, and estimated costs of dismantling and removing the item and restoring the site onwhich it is located. PPE are stated at cost, net of tax/duty credit availed, if any, after reducingaccumulated depreciation until the date of the Balance Sheet. Directly attributable costs are capitaliseduntil the asset is ready for use in accordance with the Group's accounting policy of capitalisation.(Refer note 18 - Critical Accounting Judgements and key source of estimation uncertainty.)

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flowto the Group and the cost of the item can be measured reliably. Subsequent costs relating to day today servicing of the item are not recognised in the carrying amount of an item of Property, Plant andEquipment; rather these costs are recognised in Statement of Profit & Loss as incurred.

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected toarise from the continued use of the PPE. Any gain or loss arising on the disposal or retirement of anitem of PPE is determined as the difference between the sale proceeds and the carrying amount ofthe PPE and is recognised in the Statement of Profit and Loss.

Capital Work-in-Progress

Capital work -in - progress includes the cost incurred on PPE that are not yet ready for the intendeduse and is capitalized whenever ready for use. All directly attributable expenditures are allocated tothe projects on pro rata basis to the accretion made to respective projects. However, directly attributableexpenditure of Corporate Office and field offices are allocated to Capital work – in – progress at thepredetermined rate having regard to amount of directly attributable expenditure incurred during theyear.

Depreciation

Depreciation of these PPE commences when the assets are ready for their intended use.

The Group, being engaged in electricity business, is covered under the Electricity Act, 2003 andprovisions of the Electricity Act supersede the provisions of the Companies Act, 2013. Accordingly,the Group charges depreciation on straight line method at the rates the methodology and the residual


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value as prescribed in GERC (MYT) Regulations or the Central Electricity Regulatory Commission(CERC), 2016.

The depreciation on assets transferred under the transferred scheme of GOG has been charged asper the rates specified in the GERC MYT regulations from the date of transferred scheme as clarifiedby GERC petition no. 1651/2016 dated 26.05.2017.

The rates/range of depreciation of Property, Plant and Equipment are as follows:

In case of a subsidiary GETCO, Useful Life of the Assets as specified in GERC, MYT Regulations,2016 is as under;

Asset Description Useful Life

AC and DC sub-station 35 years

Gas Insulated Sub-station (GIS)/Hybrid sub-station 35 years

Transmission line (including HVAC and HVDC) 35 years

Depreciation on additions/deletions to PPE during the year is provided for on pro-rata basis withreference to the date of additions/deletions except low value items not exceeding 5,000/- which arefully depreciated at the time of addition. Depreciation on subsequent expenditure on PPE arising onaccount of capital improvement or other factors is provided for prospectively over the remaininguseful life. The estimated useful lives, residual values and depreciation method are reviewed on anannual basis and if necessary, changes in estimates are accounted for prospectively.


Asset Description Rates/Range

Buildings 3.34%

Plant & Machinery 5.28% to 9.50%

Hydraulic Works 5.28%

Other Civil Works 3.34%

Lines & Cable Net Work Upto 5.28%

Vehicles 9.50%

Furniture-Fix & Elect-Light & Fan Installations 6.33%

Leasehold Land 3.34%

Office Equipments 6.33%

Other Assets Not covered above 5.28%

Computers 15%

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In case of GETCO, depreciation on subsequent expenditure on PPE arising on account of capitalimprovement is provided for prospectively over the remaining useful life. Additional Capital expenditurearising due to finalization of bills on the assets which were put to commercial use in earlier years aredepreciated retrospectively from the date of commercial put to use.

Capital spares mostly capable of being used in the power stations with near identical or similartechnology using similar plants and machineries and are expected to be used during more than oneaccounting period. These spares are, therefore, depreciated fully over the residual useful life of theplant.

5.2. Intangible Assets

Intangible Assets with finite useful life are recognized only if it is probable that future economic benefitsthat are attributable to the assets will flow to the enterprise and the cost of assets can be measuredreliably. The Intangible Assets are recorded at cost and are carried at cost less accumulatedamortization and accumulated impairment losses, if any. Intangible assets under development includesthe cost of assets.

An Intangible Asset is derecognized on disposal, or when no future economic benefits are expectedfrom its use or disposal. Gains or losses arising from derecognition of an intangible asset, measuredas the difference between net disposal proceed and carrying amount of the asset, are recognized inthe Statement of Profit and Loss when the asset is derecognized.

The Group amortizes Intangible assets on straight line method as per the methodology and residualvalue in accordance with GERC (MYT) Regulations, 2016.

5.3. Impairment of Tangible and Intangible Assets

The Group reviews at each reporting period whether there is any indication that an asset may beimpaired. If any such indication exists, the Group estimates the recoverable amount of the asset. Ifsuch recoverable amount of the asset or the recoverable amount of the Cash Generating Unit towhich the asset belongs is less than its carrying amount, the carrying amount is reduced to itsrecoverable amount. The reduction is treated as an impairment loss and is recognized in the Statementof Profit and Loss. If at the reporting period, there is an indication that there is a change in thepreviously assessed impairment loss, the recoverable amount is reassessed, and the asset is reflectedat the recoverable amount.

5.4. Exploration and Evaluation expenditures

Exploration and evaluation expenditure incurred after obtaining the legal right i.e. allotment of mine


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block, to explore are capitalised as exploration and evaluation assets and stated at cost less impairment.The exploration and evaluation assets are classified into tangible and intangible assets according tothe nature of the assets.

Exploration and evaluation assets are transferred to property, plant and equipment when the technicalfeasibility and commercial viability has been determined. Exploration and evaluation assets areassessed for impairment indicators at least annually. Exploration and evaluation expenditure incurredprior to obtaining the legal right to explore are expensed as incurred.

Exploration and evaluation expenditure include costs associated with acquisition of licenses andrights to explore; costs of surveys and studies; expenses of geologists; exploratory drilling; activitiesin relation to determining technical feasibility and commercial viability of extracting a mineral resource.

5.5. Non-Current Assets held for Sale

The Group classifies Non-Current Assets as held for sale if their carrying amounts will be recoveredprincipally through a sale rather than through continuing use of the assets and actions required tocomplete such sale indicate that it is unlikely that significant changes to the plan to sell will be madeor that the decision to sell will be withdrawn. Also, such assets are classified as held for sale only if themanagement expects to complete the sale within one year from the date of classification.

Non-current assets or disposal groups classified as held for sale are measured at the lower of carryingamount and fair value less costs to sell.

Property, Plant and Equipment and intangible assets are not depreciated or amortized once classifiedas held for sale.

5.6. Government Grant and Consumer Contributions

Government Grants (including Subsidies) are not recognized until there is reasonable assurance thatthey will be received, and the Group will comply with the conditions associated with the Grant.

Grants that compensate the Group for the cost of an asset and contributions by consumers towardsitems of property, plant and equipment, which require an obligation to provide electricity connectivityto the consumers are initially set up as deferred income and recognized in profit or loss on a systematicbasis over the period and in proportions of depreciation expense of the assets. Grants that compensatethe Group for expenses incurred are recognized over the period in which the related costs are incurredand shown separately.


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5.7. Revenue Recognition

Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.Revenue is measured at the fair value of the consideration received or receivable.

Revenue is recognized upon transfer of control of promised products or services to customers in anamount that reflects the consideration we expect to receive in exchange for those products or services.

Revenue is measured at the transaction price of the consideration received or receivable and representsamounts receivable for goods and services provided in the normal course of business based on theconsideration specified in a contract with a customer and excludes amounts collected on behalf ofthird parties.

Contract assets are recognized when there is right to consideration in exchange for goods or servicesthat are transferred to a customer and when that right is conditioned on something other than thepassage of time. Contract assets are classified as unbilled receivables (only act of invoicing is pending)as per contractual terms.

Revenue from Sale of Power and Transmission

Revenue from sale of power (including Deviation Settlement Mechanism (Unscheduled Interchange)is recognised on accrual basis for energy supplied in accordance with the tariff orders awarded byGujarat Electricity Regulatory Commission (GERC) as applicable to the consumers.

Surplus power, if any is sold through bilateral transactions or by putting bids in Power Exchanges onday to day basis and the same is accounted on acceptance of bids. Revenue recognised in excess ofbilling has been reflected under "other financial assets" as unbilled revenue.

Other Revenue from Power related Activities

Rebate for Prompt Payment towards purchase of power (net), Interest on UI Pool Account, CashDiscount and CDM Benefit from renewable energy are recognised on cash basis.

Wheeling charges recoveries are recognized on accrual basis.

Miscellaneous Revenue from Consumers

Bills raised for theft of energy on consumer are recognized in full as soon as assessment order isreceived from the competent authority of the respective Company.

Meter rent, recoveries from theft of power / malpractices are recognized on accrual basis.Miscellaneous charges from consumers are recognized on cash basis except when ultimate realizationof such income is certain.


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Dividend Income

Dividend Income is accounted in the year in which the right to receive the dividend is established.

Interest Income

Interest on investments is booked on a time proportion basis taking into account the amounts investedand the rate of interest.

Penalty and Liquidated Damages

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

Liquidated Damages and Penalties in relation to purchase of power and completion of projects areaccounted on actual recovery.

Insurance Claims

Claims lodged with the Insurance Company in respect of risks covered are accounted for as andwhen the claim is received.

Other Income

Income from sale of fly ash, interest income, income on O & M contract, Carbon Emission Reduction(CERs) and other incomes are recognized on accrual basis except when ultimate realization of suchincome is uncertain.

Income from sale of scrap are accounted for on the basis of actual realization.

Income received in respect of delayed payment charges is accounted for in the subsequent bill, uponrealization of the delayed payment made by the consumer.

Amount in respect of unclaimed Security Deposit, Earnest Money Deposit and Misc. Deposit of suppliersand contractors which is pending for more than three years and which, in the opinion of management,is not payable, is considered as income.

Discount received is recognised as other income.

Other Incomes are recognized on accrual basis except when ultimate realization of such income isuncertain.


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5.8. Inventories

Inventories are valued at cost or net realizable value whichever is lower. The basis of determining thevalue of each class of inventory is as follows:

(a) Consumables, Stores and Spares, Surplus Material - At cost (Weighted Average Method)

(b) Scrap - At cost or Net Realizable Value determined on the basis of realization made in the pastperiod whichever is lower.

(c) Coal and Oil - Lower of grade-based purchase cost plus freight and other fuel related cost onmonthly weighted average basis or Net Realisable Value (NRV).

Inventory consists of stock of items which are used interchangeably for capital expenditure or forregular repairs and maintenance purposes. Since ultimate use of such stock items are indeterminateat the initial recognition, the Group classifies such items as inventory. These items are classifiedsubsequently either in Property, Plant and Equipment through Capital Work in Progress / as serviceequipment or expense in the Statement of Profit and Loss as and when it is so used.

5.9. Business Combinations

Business combinations through common control transactions are accounted on a pooling of interestmethod. As per pooling of interest method:

i. The assets and liabilities of the combining entities are shown at their carrying amounts.

ii. No adjustments are made to reflect fair values or recognise any new assets or liabilities exceptthe only adjustment that are made are to harmonise accounting policies.

iii. The financial information in the financial statements in respect of prior periods is restated as ifthe business combination had occurred from the beginning of the preceding period in the financialstatements, irrespective of the actual date of the combination.

The consideration for the business combination can be of securities, cash or other assets. Securitiesare recorded at nominal value. In determining the value of the consideration, assets other than cashare considered at their fair values. The balance of the retained earnings appearing in the financialstatements of the transferor is aggregated with the corresponding balance appearing in the financialstatements of the transferee. The difference, if any, between the amount recorded as share capitalissued plus any additional consideration in the form of cash or other assets and the amount of sharecapital of the transferor is transferred to capital reserve and presented separately from other capitalreserves with disclosure of its nature and purpose in the notes.


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5.10. Foreign Exchange Transactions

Transactions in foreign currency are accounted for at the exchange rate prevailing on the transactiondate.

Gains/ losses arising on settlement as also on translation of monetary items are recognised in theStatement of Profit and Loss. However, if the Gains / losses pertains to PPE; they are capitalised tillthe time the assets are put to commercial use. Any Gains/losses that arise after the projects arecommercially put to use are recognised in the Statement of Profit and Loss. Further the gains thatarise on foreign exchange difference are adjusted upto the extent of losses that were capitalizedearlier in the projects.

5.11. Employee Benefits

Employee Benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment,compensated absences and retirement benefits.

(a) Short Term Employee Benefits

Short-Term Employee Benefits expected to be paid in exchange for the services rendered by theemployees are recognized as an expense during the period employee renders services. These benefitsinclude remuneration, bonus, incentives, etc.

(b) Long Term Employee Benefits

i. Defined Contribution Plans

Retirement benefits in the nature of employer's contribution towards Contributory ProvidentFund, Employee's Pension Scheme and Group Insurance Scheme (EDLI), etc. are charged asan expense on accrual basis and paid / deposited with the appropriate authorities during theyear.

ii. Defined Benefit Plans

The Group has maintained a Group Gratuity Cum Life Assurance Policy with M/s. Life InsuranceCorporation of India (LIC) managed by a separate Trust, towards which it annually contributesa sum based on the actuarial valuation made by M/s. LIC. The liability or asset recognised inthe Balance Sheet in respect of defined benefit gratuity plans is the present value of the definedbenefit obligation at the end of the reporting period less the fair value of plan assets. The year’sliability is estimated on the basis of actuarial valuation made by LIC using the Projected UnitCredit Method and is charged to the Statement of Profit and Loss.


253


Remeasurement gains and losses arising from experience adjustments and changes in actuarialassumptions are recognised in the period in which they occur, directly in Other ComprehensiveIncome and in the Balance Sheet.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change inbenefit that relates to past service (‘past service cost’ or ‘past service gain‘) or the gain or losson curtailment is recognised immediately in profit or loss. The Group recognises gains andlosses on the settlement of a defined benefit plan when the settlement occurs.

Re-measurements of the net defined benefit liability, which comprise actuarial gains and losses,the return on plan assets (excluding interest) and the effect of the asset ceiling (if any. excludinginterest), are recognised in OCI. The Group determines the net interest expense (income) onthe net defined benefit liability (asset) for the period by applying the discount rate used tomeasure the defined benefit obligation at the beginning of the annual period to the net definedbenefit liability (asset), taking into account any changes in the net defined benefit liability (asset)during the period as a result of contributions and benefit payments. Net interest expense andother expenses related to defined benefit plans are recognised in profit or loss.

For defined retirement benefit plans, the cost of providing benefits is determined using theprojected unit credit method, with actuarial valuations being carried out at the end of eachreporting period. Remeasurement, comprising actuarial gains and losses and the effect of thechanges to the asset ceiling (if applicable), is reflected immediately in the balance sheet with acharge or credit recognised in other comprehensive income in the period in which they occurand consequently recognised in retained earnings and is not reclassified to profit or loss. Theretirement benefit obligation recognised in the balance sheet represents the actual deficit orsurplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limitedto the present value of any economic benefits available in the form of reductions in futurecontributions to the plans.

iii. Other Long-Term Employee Benefits

Other Long-Term Employee Benefits comprise of leave encashment. The leave benefits arerecognized based on the present value of defined obligation and the year's liability is estimatedon the basis of actuarial valuations made by LIC using the Projected Unit Credit Method and ischarged to the Statement of Profit and Loss.

5.12. Lease

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the


254


contract conveys the right to control the use of an identified asset for a period of time in exchange forconsideration.

(A) Leases as Lessee (Assets taken on lease)

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make leasepayments and right-of-use assets representing the right to use the underlying assets.

(i) Lease Liabilities:

At the commencement date of the lease, the Group recognises lease liabilities measured at thepresent value of lease payments to be made over the lease term. The lease payments includefixed payments (including in substance fixed payments) less any lease incentives receivable,variable lease payments that depend on an index or a rate, and amounts expected to be paidunder residual value guarantees. The lease payments also include the exercise price of apurchase option reasonably certain to be exercised by the Group and payments of penalties forterminating a lease, if the lease term reflects the Group exercising the option to terminate. Thevariable lease payments that do not depend on an index or a rate are recognised as expense inthe period on which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses the incremental borrowingrate at the lease commencement date if the interest rate implicit in the lease is not readilydeterminable. After the commencement date, the amount of lease liabilities is increased toreflect the accretion of interest and reduced for the lease payments made.

The Group accounts for each lease component within the contract as a lease separately fromnon-lease components of the contract and allocates the consideration in the contract to eachlease component on the basis of the relative stand-alone price of the lease component and theaggregate stand-alone price of the non-lease components, except for leases where the companyhas elected to use practical expedient not to separate non-lease payments from the calculationof the lease liability and ROU asset where the entire consideration is treated as lease component.

(ii) Right-of-use Assets:

The Group recognises right-of-use (ROU) assets at the commencement date of the lease (i.e.,the date the underlying asset is available for use). Right-of-use assets are measured at cost,less any accumulated depreciation and impairment losses, and adjusted for any remeasurementof lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities


255


recognised, initial direct costs incurred, and lease payments made at or before thecommencement date less any lease incentives received. Unless the Group is reasonably certainto obtain ownership of the leased asset at the end of the lease term, the recognised right-of-useassets are depreciated on a straight-line basis over the shorter of its estimated useful life andthe lease term. Right-of use assets are subject to impairment. If ownership of the leased assettransfers to the Group at the end of the lease term or the cost reflects the exercise of a purchaseoption, depreciation is calculated using the estimated useful life of the asset.

Modifications to a lease agreement beyond the original terms and conditions are generallyaccounted for as a re-measurement of the lease liability with a corresponding adjustment to theROU asset. Any gain or loss on modification is recognized in the Statement of Profit and Loss.However, the modifications that increase the scope of the lease by adding the right to use oneor more underlying assets at a price commensurate with the stand-alone selling price areaccounted for as a separate new lease. In case of lease modifications, discounting rates usedfor measurement of lease liability and ROU assets is also suitably adjusted.

(iii) Short-term leases and leases of low-value assets:

The Group applies the short-term lease recognition exemption to its short-term leases of Property,Plant and Equipment (i.e., those leases that have a lease term of 12 months or less from thecommencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lease paymentson short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term or another systematic basis if that basis is more representative ofthe pattern of the lessee's benefit.

(B) Leases as Lessor (assets given on lease)

When the Group acts as lessor, it determines at the commencement of the lease whether it is afinance lease or an operating lease. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease except where another systematic basis is morerepresentative of the time pattern of the benefit derived from the asset given on lease.

5.13. Taxes on Income

Income Tax Expense represents the sum of Current Tax and Deferred Tax.

(a) Current Tax:

Tax currently payable is based on taxable profit for the year. Taxable profit differs from 'Profit Before


256


Tax' as reported in the Statement of Profit and Loss because of items of income or expense that aretaxable or deductible in other years and items that are never taxable or deductible. The Group'scurrent tax is calculated using tax rates that have been enacted or substantively enacted at theBalance Sheet date.

(b) Deferred Tax:

Deferred Tax is recognized on temporary differences between the carrying amounts of assets andliabilities in the financial statements and the corresponding tax bases used in the computation oftaxable profit. Deferred Tax Liabilities (DTL) are generally recognized for all taxable temporarydifferences. Deferred Tax Assets (DTA) are generally recognized for all deductible temporarydifferences to the extent that it is probable that taxable profits will be available against which thosedeductible temporary differences can be utilized.

The carrying amount of Deferred Tax Assets is reviewed at the end of each reporting period andreduced to the extent that it is no longer probable that sufficient taxable profits will be available toallow all or part of the deferred tax asset to be utilised.

Deferred Tax Liabilities and Deferred Tax Assets are measured at the tax rates that are expected toapply in the period in which the liability is settled or the asset realized, based on tax rates (and taxlaws) that have been enacted as at the Balance Sheet date.

The measurement of deferred tax liabilities and assets reflects the tax consequences that wouldfollow from the manner in which the Group expects, at the end of the reporting period, to recover orsettle the carrying amount of its assets and liabilities.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there isconvincing evidence that the Group will pay normal income tax during the specified period. Suchasset is reviewed at each Balance Sheet date and the carrying amount of MAT credit asset is writtendown to the extent there is no longer a convincing evidence to the effect that the Group will paynormal income tax during the specified period.

(c) Current and Deferred Tax for the Year:

Current and deferred tax are recognized in Statement of profit or loss, except when they relate toitems that are recognized in other comprehensive income or directly in equity, in which case, thecurrent and deferred tax are also recognized in other comprehensive income or directly in equityrespectively.


257


5.14. Borrowing Costs

Borrowing Costs specifically identified to the acquisition or construction of qualifying assets is capitalizedas part of such assets. A qualifying asset is one that necessarily takes substantial period of time toget ready for intended use. All other borrowing costs are charged to the Statement of Profit and Loss.The borrowing cost incurred on common funds borrowed generally and used for the purpose ofobtaining a qualifying asset, is apportioned on rational basis to capital work in progress for the year.All other borrowing costs are recognized as expense in the period in which they are incurred.Capitalisation of Borrowing Cost is suspended when there is no active development or activedevelopment is interrupted.

Income earned on the temporary investment of specific borrowings pending their expenditure onqualifying assets is deducted from the borrowing costs eligible for capitalisation.

5.15. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Group has a present obligation (legal or constructive) as a resultof a past event, it is probable that the Group will be required to settle the obligation, and a reliableestimate can be made of the amount of the obligation.

The amount recognized as provision is the best estimate of the consideration required to settle thepresent obligation at the end of the reporting period, taking into account the risks and uncertaintiessurrounding the obligation. When a provision is measured using the cash flows estimated to settlethe present obligation, its carrying amount is the present value of those cash flows (when the effectof the time value of money is material).

Contingent Liabilities are disclosed in the financial statements by way of Notes to Accounts, unlesspossibility of an outflow of resources embodying economic benefit is remote. Contingent liabilitiesare possible obligations that arises from past events and whose existence will only be confirmed bythe occurrence or non-occurrence of one or more future events not wholly within the control of theGroup. Where it is not probable that an outflow of economic benefits will be required, or the amountcannot be estimated reliably the obligations are disclosed as a contingent liability, unless the probabilityof outflow of economic benefits is remote.

Provisioning for Bad & Doubtful debts is made by class/group wise debtors based on periodic reviewof Debtors as well as considering decisions of Lok Adalats held during the year.

Contingent Assets are not recognised but disclosed in financial statements when an inflow of economicbenefits is probable.


258


5.16. Material Prior Period Errors

Material prior period errors are corrected retrospectively by restating the comparative amounts forthe prior periods presented in which the error occurred. If the error occurred before the earliest periodpresented, the opening balances of assets, liabilities and equity for the earliest period presented, arerestated.

5.17. Earnings Per Share

Basic Earnings Per Share is computed by dividing the profit / (loss) by the weighted average numberof equity shares outstanding during the year.

Diluted Earnings Per Share is computed by adjusting the figures used in the determination of basicEPS to take into account:

(i) After tax effect of interest and other financing costs associated with dilutive potential equityshares.

(ii) The weighted average number of additional equity shares that would have been outstandingassuming the conversion of all dilutive potential equity shares into equity shares.

5.18. Segment Reporting

In accordance with Ind AS 108, the operating segments used to present segment information areidentified on the basis of internal reports used by the Group's Management to allocate resources tothe segments and assess their performance. The Board of Directors is collectively the Group's 'ChiefOperating Decision Maker' or 'CODM' within the meaning of Ind AS 108.

5.19. Events occurring after Reporting Period

Material adjusting events (that provides evidence of condition that existed at the balance sheet date)occurring after the balance sheet date are recognized in the financial statements. Non adjustingevents (that are indicative of conditions that arose subsequent to the balance sheet date) occurringafter the balance sheet date that represents material change and commitment affecting the financialposition are disclosed in the financial statements.

5.20. Exceptional Items

Management considers Exceptional items as those material items which derive from events ortransactions that fall within the ordinary activities of the Group and which individually or, if of a similartype, in aggregate, need to be disclosed by virtue of their size or incidence.


259


5.21. Financial Instruments

Financial Assets and Financial Liabilities are recognized when the Group becomes a party to thecontractual provisions of the instruments.

Financial assets and financial liabilities are initially recognised and measured at fair value, exceptwhen the effect is immaterial. Transaction costs that are directly attributable to the acquisition orissue of financial assets and financial liabilities (other than financial assets and financial liabilities atfair value through profit or loss) are added to or deducted from the fair value of the financial assets orfinancial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to theacquisition of financial assets or financial liabilities at fair value through profit or loss are recognizedimmediately in the Statement of Profit and Loss.

(A) Financial Assets

i. Cash and Cash Equivalents

The Group considers all highly liquid financial instruments which are readily convertible intoknown amounts of cash that are subject to an insignificant risk of change in value and havingoriginal maturities of three months or less from the date of purchase, to be cash equivalents.Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawaland usage.

ii. Financial Assets at amortised cost

Financial assets are subsequently measured at amortized cost using the Effective InterestMethod (EIR), except when the effect of applying it is immaterial, if these financial assets areheld within a business model whose objective is to hold these assets in order to collect contractualcash flows and the contractual terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the principal amount outstanding.

iii. Financial Assets at Fair Value through Other Comprehensive Income

Financial Assets (including investments) are subsequently measured at fair value through othercomprehensive income if these financial assets are held within a business model whose objectiveis achieved by both collecting contractual cash flows and selling financial assets and thecontractual terms of the financial asset gives rise on specified dates to cash flows that aresolely payments of principal and interest on the principal amount outstanding.

The Group has made an irrevocable election to present in Other Comprehensive Incomesubsequent changes in the fair value of equity investments not held for trading.


260


iv. Financial Assets at Fair Value through Profit or Loss

Financial Assets (including investments) are subsequently measured at fair value through profitor loss unless it is measured at amortized cost or at fair value through other comprehensiveincome on initial recognition.

v. Impairment of Financial Assets

The Group assesses at each balance sheet date whether a financial asset or a group of financialasset is impaired. Ind AS 109 requires expected credit losses to be measured through a lossallowance. The Group recognizes lifetime expected losses for all contract assets and all tradereceivables that do not constitute a financing transaction. For all other financial assets, expectedcredit losses are measured at an amount equal to 12 month expected credit losses or at anamount equal to lifetime expected losses, if the credit risk on the financial asset has increasedsignificantly since initial recognition.

Further for the purpose of measuring lifetime expected credit loss allowance for trade receivables,the Group has used a practical expedient as permitted under Ind AS 109 i.e. expected creditloss allowance as computed based on historical credit loss experience

vi. Derecognition of Financial Assets

The Group derecognizes a financial asset when the contractual rights to the cash flows fromthe asset expire, or when it transfers the financial asset and substantially all the risks andrewards of ownership of the asset to another party.

On derecognition of a financial asset in its entirety (except for equity instruments designated asFVTOCI), the difference between the asset's carrying amount and the sum of the considerationreceived and receivable is recognized in Statement of Profit and Loss.

(B) Financial Liabilities and Equity Instruments

i. Classification as Debt and Equity

Debt and Equity instruments issued by the Group are classified as either financial liabilities oras equity in accordance with the substance of the contractual arrangements and the definitionsof a financial liability and an equity instrument.

ii. Financial Liabilities at Amortized Cost

Financial Liabilities are subsequently measured at amortized cost using the effective interest


261


method (EIR), except when the effect of applying it is immaterial. For trade and other payablesmaturing within one year from the balance sheet date, the carrying amounts approximate fairvalue due to the short maturity of these instruments.

iii. Equity Instruments

An equity instrument is a contract that evidences residual interest in the assets of the Groupafter deducting all of its liabilities. Equity instruments issued by the Group are recorded at theproceeds received. net of direct issue costs.

iv. Derecognition of Financial Liabilities

The Group derecognizes Financial Liabilities when, and only when, the Group's obligations aredischarged, cancelled or have expired. The difference between the carrying amount of thefinancial liability derecognized and the consideration paid and payable is recognized in thestatement of Profit and Loss.

v. Effective Interest Method:

The effective interest method is a method of calculating the amortized cost of a debt instrumentand of allocating interest income over the relevant period. The effective interest rate is the ratethat exactly discounts estimated future cash receipts through the expected life of the debtinstrument, or, where appropriate, a shorter period, to the net carrying amount on initialrecognition.

5.22. Power Purchase

Power purchased from IPPs is accounted (net of infirm power, wherever applicable) on the basis ofPower Purchase Agreements entered into with the respective parties.

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

Power purchased from Renewable Sources and Traders (Bilateral) is accounted on the basis ofcontracts entered into with the respective parties.

Need based power is purchased by putting bids in Power Exchanges on day to day basis and thesame is accounted on acceptance of bids.

The energy accounts in few cases are delayed for settlement due to complexity in transactions involvedin power sector. The Group receives receivable / payable claims for past period due to delayedsettlement.


262


The Group accounts such claims in the year of receipt as per prevailing practice followed.

5.23. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

In the course of applying the policies outlined in all notes under Note 1 above, the management arerequired to make judgements, estimates and assumptions about the carrying amount of assets andliabilities that are not readily apparent from other sources. The estimates and associated assumptionsare based on historical experience and other factors that are considered to be relevant. Actual resultsmay differ from these estimates.

Such estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accountingestimates are recognised in the period in which the estimate is revised if the revision affects only thatperiod, or in the period of the revision and future period, if the revision affects current and futureperiods.

Critical Judgements in applying Accounting Policy

Following are the critical judgements, apart from those involving estimations, that the Managementhave made in the process of applying the Group's Accounting Policies and that have significant effecton the amounts recognized in the Financial Statements.

a. Useful life of Property, Plant and Equipment1

Estimated useful life of Property, Plant and Equipment is based on a number of factors includingthe effects of obsolescence, demand, competition and other economic factors (such as thestability of industry and known technological advances) and the level of maintenance expendituresrequired to obtain the expected future cash flows from the asset.

Useful life of the assets of the generation/transmission/distribution of electricity business isdetermined by the CERC/GERC Tariff Regulations in accordance with Schedule II of theCompanies Act, 2013.

The Group reviews at the end of each reporting date the useful life of property, plant andequipment, other than the assets of generation/transmission/distribution of electricity businesswhich are governed by CERC/GERC Regulations, and are adjusted prospectively, if appropriate.

b. Evaluation of directly attributable costs 2

The Group capitalizes the directly attributable costs to bring the Property, Plant and Equipmentinto the location and condition necessary for it to be capable of operating in the manner intendedby the management. In assessing the directly attributable costs other than borrowing costs, the


263


management has exercised judgement to evaluate a number of factors including the resourcesapplied for direct construction related activity, enabling activities, ordinary operations of theGroup, level of construction related activity compared to Group's operating activity, considerationof the costs charged to external parties for similar works undertaken as well as experience ofgroup companies engaged in distribution business. Based on this assessment and particularlyconsidering experience across the group companies engaged in distribution business, themanagement estimates a capitalisation rate of directly attributable costs to be applied on theexpenditures on the relevant assets. The management reviews this capitalization rate on aperiodic basis and any change in the rate is applied prospectively.

c. Evaluation of Indicators for Impairment of Property, Plant and Equipment2

The evaluation of applicability of indicators for impairment of assets require assessment ofexternal factors (significant decline in asset's value, economic or legal environment, marketinterest rates, etc.) and internal factors (obsolescence or physical damage of an asset, pooreconomic performance of the asset, etc.) which could result in significant change in recoverableamount of the Property, Plant and Equipment.

d. Regulatory Deferral Accounts1

Ind AS - 114 “Regulatory Deferral Accounts” permits the Group to apply the requirements ofthis standard in its first Ind AS Financial Statements if and only if it conducts rate-regulatedactivities and recognised amounts that qualify as Regulatory Deferral Account Balances in itsfinancial statements in accordance with its previous GAAP. As the Group had consistentlyelected not to recognise the Regulatory Deferral Balances in its previous GAAP, the requirementof IND AS 114 does not apply to the Group.

e. Security Deposits2

Considering the historical experience and practical expediency, the Group has exercised itsjudgement on timing of settlement of security deposit collected from the customers and hasaccordingly classified the undiscounted value of security deposit as non-current liability or currentliability as the case may be.

f. Impairment of Trade Receivables2

The Group estimates the credit allowance as per practical expedient based on historical creditloss experience as enumerated in Note-11.


264


g. Impairment of Investments2

At the end of each reporting period, the Group reviews the carrying amounts of its investmentswhen there is indication for impairment. If the recoverable amount is less than its carryingamount, the impairment loss is accounted for.

h. Deferred Tax Assets2

Deferred Tax Assets (DTA) are recognised for unused tax losses / credits to the extent that it isprobable that taxable profit will be available against which the losses can be utilised. Managementjudgement is required to determine the amount of deferred tax assets that can be recognised,based upon the likely timing and the level of future taxable profits together with future taxplanning strategies.

i. Government Grants and Consumer Contributions12

The grants i.e. revenue subsidies are not recognized until there is reasonable assurance thatthe Group will receive the grants and will comply with the conditions attached to them.Management judgement is required to determine when reasonable assurance is attained, basedon historical experience of receipts including the quantum of aggregation, approved budgetestimates of Government of Gujarat, likely timing and consideration of claim acceptance/rejection.Based on this assessment, the Group judges that in the case of revenue subsidies, there isreasonable assurance of complying with the conditions and receiving the subsidies as approvedin the budget estimates of every year and the remaining subsidies which are receivable/claimablewould be recognized when reasonable assurance is attained.

The Group is required to recognise grants/consumer contribution that compensate the cost ofassets to profit or loss on a systematic basis considering the amount of periodic consumption ofthe assets. This is based on the assessment of the present status of, and expected futurebenefits from the assets. The Group recognizes grants and consumer contributions thatcompensate the cost of an asset in the Statement of Profit and Loss on the basis of straight linemethod and consequentially the rates at which grant/consumer contribution is recognised inincome.

j. Defined Benefit Obligation (DBO)2

Management's estimate of Defined Benefit Obligation (DBO) is based on a number of criticalunderlying assumptions such as standard rates of inflation, medical cost trends, mortality,discount rate and anticipation of future salary increases. Variation in these assumptions may


265


significantly impact the Defined Benefit Obligation amount and the annual defined benefitexpenses.

k. Contingent Liabilities

In the normal course of business, Contingent Liabilities may arise from litigation and otherclaims against the Group. Potential liabilities that are possible but not probable of crystallisingor are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities aredisclosed in the Notes but are not recognised. Potential liabilities that are remote are neitherrecognized nor disclosed as contingent liability. The management decides whether the mattersneeds to be classified as 'remote', 'possible' or 'probable' based on expert advice, past judgments,experiences etc.

1Critical Accounting Judgments

2 Key Sources of Estimation uncertainty


266


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( in

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267


2.7 Depreciation, Amortisation and Impairment Expenses includes following in case of subsidiaryGSECL:

ParticularsFor the year ended March 31st,

2020 2019

Depreciation on Tangible Assets 1,11,889.75 98,987.01Written Down of Capital Work in Progress (Refer Note 3) - 4,384.59Amortization / Written Down of Intangible Assets(Refer Note 4) - 10.05Impairment for Asset Held for Sale (Refer Note 17) 5,991.20 1,340.79 Total 1,17,880.95 1,04,722.45


( in Lakhs)

3 Capital Work-in-Progress



Capital Work-in-Progress 6,37,969.60 9,23,794.06Provision for Unbilled Capital Works 6,423.40 10,373.52Exploration and Evaluation assets (Refer Note 53) 10,482.21 10,461.86Interest Charges to be Capitalised 312.39 971.91

Total 6,55,187.59 9,45,601.36

( in Lakhs)

A The Company has evaluated the directly attributable cost capitalisation rate for the current financialyear ended 31st March 2020 and applied this to the expenditure on the relevant assets and the totalexpenditure thus capitalized during the current financial year is 99,354.86 lakhs (P.Y 107,387.77lakhs).

B The individual entities have capitalised the borrowing costs as per their respective rate of capitalisationranging from 7% to 9%.

4 Intangible Assets Under Development



Intangible Assets Under Development 75.28 75.28

Total 75.28 75.28

( in Lakhs)

268


Particulars

Gross Carrying ValueAs at 1st April, 2018 75.28Additions/(Deductions) -As at 31st March, 2019 75.28Additions/(Deductions) -As at 31st March, 2020 75.28Amortisation & ImpairmentAs at 1st April, 2018 -Additions/(Deductions) -As at 31st March, 2019 -Additions/(Deductions) -As at 31st March, 2020 -Net Carrying ValueAs at 31st March, 2019 75.28As at 31st March, 2020 75.28

( in Lakhs)


5 Investments

Particulars As at

31st March, 2019 As at

31st March, 2020

Investment in Equity Instruments (at Fair Value throughOther Comprehensive Income)Quoted, Non-Trade- Gujarat State Petronet Limited (GSPL) 29,057.83 31,968.38

1,68,50,000 (P.Y. 1,68,50,000) Equity Shares of10/- each, fully paid-up

- Gujarat Gas Company Limited (GGCL) 615.09 394.612,66,445 (P.Y. 2,66,445) Equity Shares of

2/- each, fully paid-upUn-quoted, Non-Trade- Gujarat Power Corporation Limited (GPCL) 4,014.10 4,426.06

19,30,013 (P.Y. 19,30,013) Equity Shares of100/- each, fully paid-up

- Gujarat State Energy Generation Limited (GSEG) 2,829.99 4,285.732,90,03,636 (P.Y. 2,90,03,636) Equity Shares of

10/- each, fully paid-up

269



- Power Exchange of India Limited (PEIL) 100.28 -25,00,000 (P.Y.25,00,000) Equity Shares of

10/- each, fully paid-up- Kalupur Commercial Co-Operative Bank Limited 0.05 0.05

200 (P.Y. 200) equity share of 25 each/-, fully paid up Total (A) 36,617.34 41,074.81

Investment in Associate and Joint Venture CompaniesQuoted- Gujarat Industries Power Company Limited (GIPCL)

(Associate Company) 73,747.80 68,988.85405,90,279 (P.Y. 405,90,279) equity share of

10 each, fully paid upUnquoted- Mahaguj Collieries Limited (MGCL)

(Joint Venture Company) 2.00 2.00Less: Share of Losses in Joint Venture -2.00 -2.0020,000 (P.Y. 20,000) equity share of 10 each, fully paid up

Total (B) 73,747.80 68,988.85

Investment in Government securities (Quoted) (at Fair Value through OtherComprehensive Income (OCI))PARTICULARS No. of Units Rate Cost

8.28% GoI 2027 11,36,000 96.64 1,097.838.24% GoI 2027 15,00,000 96.41 1,446.159.38% AP SDL 2023 15,00,000 102.34 1,535.109.99% RAJ SDL 2028 5,00,000 107.82 539.109.67% Jharkhand SDL 2024 8,80,000 104.31 917.939.16% RAJ SDL 2028 1,08,000 108.08 116.738.57% UP SPECIAL SDL 10,00,000 102.52 1,025.208.75% TN SDL 2022 20,00,000 102.68 2,053.608.58% UP Special SDL 2024 5,00,000 102.18 510.908.96% RAJSTHAN SPECIAL 10,00,000 104.59 1,045.908.32% CHHATISHGARH SDL 15,00,000 100.97 1,514.559.99% RAJ SDL SPL 2,17,000 114.78 249.07Total Cost 12,052.06

Total (C)Total

13,041.89 12,520.851,23,407.03 1,22,584.51

13,041.89 12,520.85

( in Lakhs)

270


Aggregate Market Value of quoted investment 62,969.36 73,743.52Aggregate Cost of unquoted investments 5,172.46 5,172.46Aggregate Cost of quoted investment 22,284.41 22,284,41Aggregate amount of Impairment in value of investment 2.00 2.00

A. Share

Premium TotalCompanies other than Associate and Joint Venture:

Gujarat State Petronet Ltd. 1,685.00 - 1,685.00Gujarat Power Corporation Ltd. 1,930.01 - 1,930.01Gujarat State Energy Generation Ltd. 2,900.36 90.04 2,990.40Gujarat Gas Co. Ltd. 5.00 - 5.00Power Exchange Of India Ltd. 250.00 - 250.00

Total Investment 6,770.37 90.04 6,860.41

Share Capital

( in Lakhs)


B. The latest Audited Financials of Gujarat Power Company Limited available with the Company is for31st March 2020. For calculation of Fair Value as at 31st March 2020 the Company has consideredlatest Audited Balance Sheet of GPCL i.e. for 31st March 2020.

C. The Net Asset Value of Power Exchange Of India Ltd. (PXIL) for the year ended 31st March, 2020 ispositive (Negative for 31st March, 2019) and hence the Fair Value of such investment is 100.28Lakhs for the year ended 31st March, 2020 ( Nil for 31st March, 2019).

Gujarat State Electricity Corporation Ltd. Generation of India 100.00% 100.00%Power

Gujarat Energy Transmission Corporation Ltd. Transmission of India 100.00% 98.27%Power

Dakshin Gujarat Vij Company Ltd. Distribution of India 100.00% 100.00%Power

Proportion of ownershipinterest/ voting rights held

by the Company

As at 31st


March, 2019


place ofbusiness

PrincipalactivityName of Company

D. Details of Subsidiaries

i

271


ii. Government of Gujarat (GOG) which held stake in GETCO of 1,25,00,000 equity shares aggregatingto 1250.00 Lakhs of face value of equity share capital has been transferred to the Company, tomake GETCO a wholly owned subsidiary of the Company. The Company has issued it’s own EquityShares as consideration against the stake transferred by GOG at a determined fair value.

iii. In previous year, 7 shares of subsidiary GSECL of 10/- each were issued to the promotors of thedemerged company BECL acquired by subsidiary GSECL through business combination undercommon control.


Madhya Gujarat Vij Company Ltd. Distribution of India 100.00% 100.00%Power

Paschim Gujarat Vij Company Ltd. Distribution of India 100.00% 100.00%Power

Uttar Gujarat Vij Company Ltd. Distribution of India 100.00% 100.00%Power

Name of Company

E. Details of Associatei.

Gujarat Industries Power Company Ltd. Generation of India 26.84% 26.84%Power

Equity accounted Associate viz. GIPCL:Net Assets as at date of acquisition 12,970.65 12,970.65Less: Acquisition Cost 10,592.35 10,592.35Capital Reserve 2,378.30 2,378.30Capital Reserve taken to Other Equity as per Equity method in Ind AS 2,378.30 2,378.30

Carrying amount of investment at the year end 73,747.80 68,988.85Net Assets as at date of acquisition 12,970.65 12,970.65Post acquisition share profits as at the date of financial statements 60,777.15 56,018.20


by the Company

As at 31st


March, 2019


place ofbusiness

Principalactivity

( in Lakhs)

ii. The Group has invested 10,592.35 Lakhs in Gujarat Industries Power Co. Ltd. (GIPCL) from 1988-89 to 2005-06. The Group owns 26.84% which makes it Associate as per Ind AS 28 “Investments inAssociates and Joint Ventures in Consolidated Financial Statements” as of 31st March 2020.

272


F. Details of Joint Venturei.


by the Company

As at 31st


March, 2019


place ofbusiness

Principalactivity

Mahaguj Collieries Limited Mining and Mumbai, India 40% 40%agglomeration of

hard coal

Name of Company

ii. Gujarat State Electricity Company Limited (GSECL), the wholly owned subsidiary of GUVNL, is aCompany covered under the Companies Act, 2013. GSECL has entered into a Joint Venture (JV)operation with MAHAGENCO viz. Mahaguj Collieries Limited for allocation of captive coal miningblock in state of Orissa and sharing of coal in ratio of 40:60 from extractable reserves. As perrequirements of Section 129(3) of the Companies Act, 2013, GSECL is required to prepare ConsolidatedFinancial Statements (CFS) subject to exemption granted under Rule 6 of the Companies (Accounts)Rules, 2014 vide Notification 742 (E) dated 27.07.2016. As per exemption granted, GSECL has notprepared the CFS because its Holding Company i.e. GUVNL prepares the CFS in compliance withthe applicable Accounting Standards. GSECL has availed of this exemption and hence GUVNL hasconsolidated the Joint Venture in the CFS. Further, GUVNL has consolidated its wholly ownedsubsidiary GSECL as per applicable Ind AS 110 and Ind AS 28 as is applicable to GSECL’s interestin JV.

Further, disclosures in regard to this JV are as under:

iii. Based on audited Account of MahaGuj Collieries Ltd (MGCL) the assets and liability as on 31st March,2020 is as under:




ASSETSNon Current AssetsProperty, plant & Equipments 1.60 0.62Other non current assets 5,440.70 5,440.70Current AssetsFinancial AssetsCash and cash equivalents 1.17 23.18Other Current assets 0.10 0.09

( in Lakhs)

273



EQUITY AND LIABILITIESNon Current LiabilitiesFinancial LiabilitiesOther Financial liabilities 0.17 0.15Current LiabilitiesFinancial LiabilitiesTrade payables - Dues to Micro Enterprises & Small Enterprises - - - Others 48.31 25.04Other Current liabilities 7.11 9.20

Share in Net assets of Joint venture 2,155.19 2,172.08Share in Profit for the year of Joint venture (92.94) (107.70)

iv. The share in the Net worth of the Joint Venture is 2,155.19 lakhs (P.Y. 2,172.08 lakhs) and incurent year loss is 92.94 lakhs (P.Y. 107.70 lakhs). The investment in the Joint Venture is 2Lakhs; however the share in net assets is restricted to the amount of carrying value of investments asthe Company does not have any obligation for the liability of Joint Venture.

v. Ministry of Coal, Government of India has allotted the Machhakata & Mahanadi coal block in Odishajointly to GSECL and MSPGCL for the captive coal mining under Government Dispensation Route.The coal produced from the block was to be shared between GSECL and MSPGCL in the ratio of40% and 60% respectively. The Joint Venture Company in the name of “Mahaguj Collieries Limited”(MGCL) was incorporated on 01-11-2006 by MSPGCL and GSECL for development of Coal Blockand M/s Adani Enterprises Ltd. (AEL) was appointed as MDO.

The Hon’ble Supreme Court vide its order dated 24-09-2014 cancelled the allocated coal block.Subsequent to cancellation of the Coal Block, the MDO M/s Adani Enterprises Ltd. raised a claim ofRs. 39,979 Lakhs against MGCL for the expenditure incurred by them for the project. M/s AEL invokedthe Arbitration Proceeding due to denial of claim by MGCL along with application u/s 17 for interimrelief of 4,470 Lakhs to the Arbitral Tribunal on 10.05.2017. The Arbitral Tribunal passed the FirstInterim Award on 01.02.2018 and directed MGCL to pay to M/s. AEL a sum of 3,279.60 Lakhswhich was challenged by MGCL in the Bombay High Court. The Bombay High Court admitted thecase and in its common order dtd 25.02.2019 set aside the order of the Arbitration Tribunal.

vi. During the year company has made the provision for 74.91 Lakhs (P.Y. 111.45 Lakhs) againstlong term loans & advance given to MahaGuj Collieries Ltd for development of Machhakata andMahanadi coal block which has been de allocated as per the order of Hon’ble Supreme Court.

274


6 Non-Current Loans



Secured Considered GoodLoans & Advances to Staff 10,993.64 11,310.73 Total (A) 10,993.64 11,310.73Unsecured Considered GoodOther Loans And Advances 20.07 12.32 Total (B) 20.07 12.32Loans which have significant increase in credit riskLoans & Advances - - Total (C) - -Loans which are Credit ImpairedLoan to Joint Venture Company 2,503.03 2,428.12Less: Provision for Loss (refer note 5F(v)) (2,503.03) (2,428.12) Total (D) - - Total (A+B+C+D) 11,013.71 11,323.05

( in Lakhs)


A. Loans to staff are secured by way of hypothecation of house/ four wheeler/ two wheeler for which theloans have been given.

7. Other Non-Current Financial Assets



Secured Considered GoodInterest Accrued But Not Due on Staff Loans & Others 12,510.72 11,582.83Interest Accrued & Due on Staff Loans 494.67 481.95Other Recoverables 143.20 -Unsecured Considered GoodLoans Recoverable from consumers for SKY scheme 17,783.28 7,305.90Deposits with Others 8,972.77 9,266.40Deposit with Government and Local bodies 2,466.22 127.52Other Bank Balances* 1,182.10 1,182.10Deposits with banks for more than 12 months 426.98 365.94Other Loans & Advances 37.37 23.57 Total 44,017.32 30,336.21

( in Lakhs)

275


8. Other Non-Current Assets



( in Lakhs)

Capital Advances to Suppliers / Contractors 20,320.73 12,962.41Other Deposits 954.79 732.71Prepayments - Leasehold Land 721.35 2,325.55 Total 21,996.87 16,020.67

*GSECL has 1,182.10 lakhs (P.Y. 1,182.10 Lakhs) deposited in separate Bank Account maintainedwith Dena Bank towards invokation of Bank Guarantee of M/s. Shapoorji Pallonji Company Pvt. Ltd, thesaid amount is not available for utilization as the arbitration proceeding is ongoing. Proceedings can beutilized only after final verdict of Arbitration.


9 Inventories



( in Lakhs)

STORES, SPARES & LOOSE TOOLSStock of materials at stores 2,57,785.84 1,98,195.38(net of provision for non moving stock of

197.67 lakhs (P.Y. 33.54 lakhs))Materials at Site (O&M) 6,947.30 9,588.77Materials in Transit 12,094.03 45,025.79Materials pending Inspection 4,965.66 9,072.35Other Materials Accounts 31,404.02 24,498.09Fuel 1,00,238.10 99,903.80Material Stock pending Investigation 967.29 966.85Less: Provision for stock pending investigation (973.77) (973.06)

Total 4,13,428.47 3,86,277.97

For basis of valuation refer Note No. 1(C)(5.8) of Significant Accounting Policies.

276


10 Trade Receivables



( in Lakhs)

Secured Considered GoodTrade Receivables for Sale of Power 2,427.87 2,287.89

Total (A) 2,427.87 2,287.89Unsecured Considered Good (Good to the extent of securitydeposit received from the respective Consumers)Trade Receivables for Sale of Power 4,32,797.96 3,44,104.94Trade Receivables for Misc. Receipts from Cons. 2,722.93 3,350.97Less: Allowance for bad and Doubtful Debts (44,123.78) (19,439.05)Less: Doubtful E D (20,488.67) (19,028.60)

Total (B) 3,70,908.44 3,08,988.26

Significant Increase in Credit RiskDues from Non Consumers and Unconnected Consumers 31,856.42 32,367.07Less: Allowance for bad and Doubtful Debts (6,001.49) (24,579.50) Total (C) 25,854.93 7,787.57Less: Unposted Receipts (201.60) (359.79)

Total (D) (201.60) (359.79)Credit ImpairedDues from Permanently Disconnected Consumers 1,02,906.42 1,02,746.76Less: Allowance for bad and Doubtful Debts (1,02,906.42) (85,567.15)

Total (E) - 17,179.60

Total (A+B-C+D+E) 3,98,989.63 3,35,883.53


Receivables have been secured to the extent of security deposit as reflected note no. 23 as well asbank guarantee received from the respective Consumers.

A The Group assesses expected credit loss to be provided for from its customers by using a practicalexpedient as permitted under Ind AS 109 i.e. expected credit loss allowance as computed based onhistorical credit loss experience and the ageing of the receivable balances.

B Generally, the credit period on sale of electrical energy is upto 10-25 days in case of DistributionCompanies and 30-60 days in case of Other Group Companies. Delay Payment Surcharge is chargedat agreed rate as per contractual terms on the overdue balance.

277


C In case of Distribution Companies, GOG vide GR no. GUV-2016-3170-K-1-2842 dated 12.10.2017has declared Amnesty Scheme-2017 effective from 25.04.2018 to 31.12.2018, which was subsequentlyextended with further amendments vide GR no.GUV-2016-3170-k-1 dated 19.02.2019 upto 31.05.2019for various categories of consumers as one time settlement of their outstanding dues. Under thisScheme, the Company has waived off Principal dues amounting to 9,354.47 Lakhs (P. Y. 21,103.16lakhs).

D Trade Receivable for sale of power in case of Distribution Companies includes the Provision forunbilled revenue in respect of the bills issued upto 31st March, 2020 amounting to 2,51,284.53Lakhs (P.Y. 3,39,697.17 Lakhs).

E In case of Distribution Companies, Cash Credit Limit is secured against 1st hypothecation charge infavour of Consortium Bank Members on the Stocks and Book Debts.

11 Cash and Cash Equivalents



( in Lakhs)

Balances with Banks 16,441.69 22,725.63Cash on hand 79.89 1,164.08Cheques on hand 1,155.21 5,798.64Remittance-in-Transit 2,050.39 4,652.97Deposits with Banks 68.54 1,561.95Less: Provision for Remittance in Transit (142.06) (142.06)

Total 19,653.65 35,761.20

12 Other Bank Balances



( in Lakhs)

Deposit with Banks (remaining maturity of morethan 3 months but less than 12 months) 4,126.21 3,028.07 Total 4,126.21 3,028.07

278


A Deposit with Banks includes:

(i) 2712.69 lakhs for fixed Deposit receipts with State Bank of India, IFB, Vadodara carrying theinterest rate of 6.70% p.a.

(ii) 0.34 lakhs for fixed Deposit receipts with State Bank of India, IFB, Vadodara carrying theinterest rate of 6.70% p.a.

(iii) 855.20 lakhs for fixed Deposit receipts with State Bank of India, IFB, Vadodara carrying theinterest rate of 4.60% p.a.

(iv) 2.90 lakhs for fixed Deposit receipts with State Bank of India, IFB, Vadodara carrying theinterest rate of 6.40% p.a.

(v) 37.00 lakhs for fixed Deposit receipts with State Bank of India, OPR, Vadodara carrying theinterest rate of 5.50% p.a

(vi) 3.86 lakhs for fixed Deposit receipts with State Bank of India, OPR, Vadodara carrying theinterest rate of 5.00% p.a

(vii) 54.22 lakhs for fixed Deposit with Allahabad Bank on behalf of Bal Urja Rakshak Dal, carryingthe interest rate of 6.50% p.a.


13 Current Loans



( in Lakhs)

Loans and Advances to EmployeeSecured Considered GoodLoans & Advances to Staff-Interest Bearing 2,769.63 4,335.18Unsecured considered goodOther loans and advances 985.31 1,021.35Loans which have significant increase in credit risk - -Loans which are credit impaired - -

Total 3,754.94 5,356.53

A Loans to Staff are secured by way of hypothecation of house/ four wheeler/ two wheeler for whichthe loans have been given.

279


14 Other Current Financial Assets



( in Lakhs)

Unsecured Considered GoodInterest Accrued But Not Due on Staff Loans & Others 1,515.55 2,123.23Interest Accrued & Due on Staff Loans 710.65 928.42Advances to Staff 136.03 142.62Recoverables from Staff 677.45 109.71Fuel related Claims and Receivables 909.32 1,753.98Loans Recoverable from Consumers for SKY Scheme 4,475.81 1,582.53ED Receivable from Government 93.21 -Interest Receivable from consumers for SKY Scheme loans 46.45 -Subsidy Receivable from Government 2,07,858.13 3,25,969.71Unbilled Revenue 57,158.43 79,635.74Deposits 2,174.83 2,500.85Other recoverables 36,232.22 16,388.75Less: Provision made for doubtful recoveries (201.28) (22.50)Loan to others (refer note 62) 655.73 655.73Receivable from Gujarat Energy Training &Research Institute (GETRI) 345.59 113.80

Total 3,12,788.10 4,31,882.57


15 Current Tax Assets (Net)



( in Lakhs)

Current Tax AssetsTax Refund Receivable 2,39,203.61 2,08,406.22

Current Tax Liability (1,94,225.69) (1,61,609.95)Income Tax Payable Total 44,977.92 46,796.26

280


16 Other Current Assets



( in Lakhs)

Unsecured Considered GoodPrepaid Expenses 4,524.42 4,636.46Postage stamp & stamped agreements on hand 119.53 74.92Advances for O&M Supplies/Works 56,756.98 54,851.58Balance with Appellate Authority 820.02 610.77Electricity Duty Recovered in Advance by Govt. of Gujarat 57,428.04 10,891.38Advance to IPP against Power Purchase 6,800.00 4,200.00Pre-Payments Leasehold Land - 107.46Gratuity Asset (Refer Note No. 43) 7,873.52 -Goods and Service Tax - Tax deducted at Source 30.48 58.36

Total 1,34,352.99 75,430.93

17 Assets classified as held for sale



( in Lakhs)

Obsolete/scraped assets 13,824.85 6,398.12

Total 13,824.85 6,398.12


Description of Assets held for sale As at31st March, 2020


( in Lakhs)

Plant and Machinery 11,870.01 6,056.66Hydraulic Works 405.93 50.86Lines and Cables 123.91 110.17Buildings & Civil Work 1,339.03 102.14Vehicles 4.78 5.48Furniture & Fixtures 1.26 2.18Office Equipments 7.12 20.44Others 72.82 50.18

Total 13,824.85 6,398.12

281


Utran 135 MW & Kutch Lignite (KLTPS) Unit 1 & 2 Power Stations have been decommissioned and henceassets related to such power stations are classified as held for sale. These assets will be sold through e-auction and sale is expected to be completed by next year.

Based on Valuation Report of Independent Valuer, Fair value of KLTPS Unit 1 & 2 is 10,951.86 Lakhsand the difference between Fair Value & Carrying Value is recognised as Impairment Loss for 5,991.20Lakhs during F.Y. 2019-20. Further based on bids received for sale through E-auction of assets of Utran135 MW in previous year, Fair Value of Assets held for sale of Utran 135 MW was considered as 1,152Lakhs and the difference between Fair Value & Carrying Value was recognised as Impairment Loss for

1,340.79 Lakhs during the F.Y. 2018-19. The same has been shown under the head Depreciation,Amortization and Impairment Expenses in Note No. 2(i)

18 Equity Share CapitalA Equity Share Capital consist of the following:



( in Lakhs)

Share CapitalEquity Share CapitalAuthorised Share Capital3000,00,00,000 Equity Shares of 10/- each 30,00,000.00 30,00,000.00Issued Share Capital2350,57,58,495 (P.Y. 2016,98,31,795) of 10/- each 23,50,575.85 20,16,983.18Subscribed & Paid up2234,78,11,995 (P.Y. 1977,22,22,095) of 10/- each fully paid 22,34,781.20 19,77,222.21

Total 22,34,781.20 19,77,222.21


B Reconciliation of number of shares outstanding at the beginning and at the end of reportingperiod is as under:



( in Lakhs)

As at 1st April, 2018 16,22,75,49,895 16,22,754.99Additions/(Reductions) 3,54,46,72,200 3,54,467.22As at 31st March, 2019 19,77,22,22,095 19,77,222.21As at 1st April, 2019 19,77,22,22,095 19,77,222.21Additions/(Reductions) 2,57,55,89,900 2,57,558.99As at 31st March, 2020 22,34,78,11,995 22,34,781.20

282


C Shares in the Company held by Shareholders holding more than 5% is as under:

Particulars

Governor of Gujarat (including its nominees) 22,34,78,11,995 100%

As at 31st March, 2020

Extent of Holding No. of shares


Extent of Holding No. of shares

Governor of Gujarat (including its nominees) 19,77,22,22,095 100%

Particulars

D. Right, Preferences and Restrictions attached to shares :

The Company has only one class of equity shares. For all matters submitted to vote on a poll in ashareholders’ meeting of the Company every holder of an equity share as reflected in the records ofthe Company on the date of the shareholders’ meeting shall have voting right in proportion to hisshare in the paid up Equity Share Capital of the Company. Any dividend declared by the companyshall be paid to each holder of Equity shares in proportion to the number of shares held to total equityshares outstanding as on that date. In the event of liquidation of the Company, all preferential amountsif any shall be discharged by the Company. The remaining assets of the Company shall be distributedto the holders of equity shares in proportion to the number of shares held to the total equity sharesoutstanding as on that date.


19 Other EquityA Other Equity consist of the following:



Share Application Money pending allotment 1,15,794.65 39,760.97Contingency Reserve Fund 12,048.23 12,048.23Fly ash utilisation Reserve Fund 7,663.02 6,625.96Capital Reserve 2,378.30 2,378.30Capital Reserve on account of Business Combination 1,05,400.39 1,05,400.39Securities Premium - 3,750.00Retained Earnings 6,08,684.03 4,78,953.25Equity Instruments through Other Comprehensive Income 29,756.87 34,214.35Reserve for financial asset measured at fair value through OCI 649.59 310.62Share of OCI of Associate accounted for using equity method 773.71 1,250.66 Total 8,83,148.28 6,84,692.72

( in Lakhs)

283


B Particulars relating to Other Equity



( in Lakhs)

Share Application Money pending allotmentOpening Balance 39,760.97 1,17,518.99Add: Increase during the year 1,15,794.65 39,760.97Less: Shares Issued (39,760.97) (1,17,518.99)Balance at the year end 1,15,794.65 39,760.97

Contingency Reserve FundOpening balance 12,048.23 12,048.23Less: Transferred to retained earning - -Balance at the year end 12,048.23 12,048.23

Fly ash utilisation Reserve FundOpening balance 6,625.96 3,642.91Add: Increase during the year through sales 1,314.82 2,983.05Less: Utilisation (277.77) -Balance at the year end 7,663.02 6,625.96

Capital ReserveOpening balance 2,378.30 2,378.30Add: Transferred to retained earning - -Balance at the year end 2,378.30 2,378.30

Capital Reserve on account of Business CombinationOpening balance 1,05,400.39 1,03,000.39Add: Changes on account of Business combination - 2,400.00Balance at the year end 1,05,400.39 1,05,400.39

*The share of Non-Controlling Interest is 254.08, since the above figures are in lakhs the same isnot getting reflected.


Out of Above:Equity belonging to the Non Controlling interests (refer SOCIE)* 0.00 9,126.69

Equity belonging to the Owners 8,83,148.27 6,75,566.03

284



Securities PremiumOpening balance 3,750.00 3,750.00Add: Transferred to retained earning (3,750.00) -Balance at the year end - 3,750.00

Retained EarningsOpening Balance 4,78,953.25 3,98,064.46Add: Net profit after tax transferred from Statement of Profit & Loss 1,55,915.09 99,646.62Add: Other Comprehensive income arising from remeasurementof defined benefit obligation (25,941.90) (18,538.87)Add: Share in other reserve of Associate - 6.10Less: Share of CDT on dividend received from Associate (241.96) (225.27)Balance at the year end 6,08,684.03 4,78,953.25

Equity Instruments through Other Comprehensive IncomeOpening Balance 34,214.35 31,813.77Add: Increase / (Decrease) during the year (4,457.48) 2,400.59Balance at the year end 29,756.87 34,214.35

Reserve for Financial Asset measured at fair value through OCIOpening Balance 310.62 287.31Add: Increase / (Decrease) during the year 338.97 23.31Balance at the year end 649.59 310.62

Share of OCI of Associate accounted for using Equity MethodOpening Balance 1,250.66 1,671.74Add: Increase / (Decrease) during the year (476.95) (421.08)Balance at the year end 773.71 1,250.66

Total Other Equity 8,83,148.79 6,84,692.72

C Share Application Money pending allotment

The Company had received advance from the existing shareholder - the Governor of Gujarat forequity share subscription on a right basis. This amount has been approved for share allotment onright basis in March 2020 and also allotted subsequent to the year end, in April 2020.

285


D Contingency Reserve

As per provisions of GERC MYT Regulations read with Tariff orders passed by GERC, M/s GETCOmakes an appropriation to the Contingency Reserve to meet with certain exigencies. Investmentsin securities authorised under Indian Trust Act, 1882 was made against such reserve. During theyear, as there is sufficient fund for Contingencies, no appropriation is made to the ContingencyReserve Fund. (PY. Nil).

E Fly ash utilisation Reserve Fund

As per Notification of MoEF dated 03.11.2009, the company is required to maintain a separateaccount for the amount collected from sale of fly ash and fly ash based products and this amountshould be kept in separate account head and shall be utilized only for the development of infrastructureor facilities, promotional and facilitation activities for the use of fly ash until 100% fly ash utilizationis achieved.

As such the Company is maintaining a separate account and deposits the amount received fromsale of fly ash and fly ash based products and utilizes the same regularly for O&M for the Fly ashutilisation & development of infrastructure facilities. The Company has achieved 100% utilization offly ash during the year at Gandhinagar, Wanakbori, Sikka and Kutch Lignite TPS and hence noseparate account is required to be maintained for these TPS.

During the year, fly ash utilisation at Ukai and Bhavnagar Lignite TPS is less than 100 % and hence 1,314.82 Lakhs (P.Y. 2,983.05 Lakhs) is transferred to fly ash utilisation reserve fund.

F Capital Reserve

Capital Reserve is the reserve due to equity method of accounting of Associate- M/s GIPCL at thetime of acquisition of Associate.

G Capital Reserve on account of Business Combination

Capital Reserve on account of Business Combination is due to acquisition by Subsidiary- GSECL

H Securities Premium

Till previous year, securities premium is the share of securities premium of the Non-controllinginterests.

I Equity Instruments through Other Comprehensive Income

The Company has elected to recognise changes in the fair value of certain investments in equity


286


securities in Other Comprehensive Income. This reserve represents the cumulative gains and lossesarising on the revaluation of equity instruments measured at fair value through Other ComprehensiveIncome. The Company transfers amounts from this Reserve to Retained Earnings when the relevantequity securities are disposed.

J Reserve for Financial Asset measured at fair value through OCI

The Company has elected to recognise changes in the fair value of certain investments in debtsecurities in Other Comprehensive Income. These changes are accumulated within FVTOCI reservewithin equity. The Company transfers amounts from this reserve to retained earnings when therelevant debt securities are derecognised.

20 Deferred Government Grant, Subsidies and Consumer Contribution



Government Grants, Subsidies towards Capital Assets 3,12,754.16 3,06,758.02Consumers' contribution towards Capital Assets 5,92,347.44 5,46,306.01

Total 9,05,101.60 8,53,064.03

( in Lakhs)


A Particulars relating to Deferred Government Grants, Subsidies and Contributions



Government Grants, Subsidies towards Capital AssetsOpening balance 3,06,758.02 2,79,324.65Add : Received during the year 37,584.08 57,206.97Less : Transferred to Statement of Profit and Loss (31,587.92) (29,773.59) Closing Balance 3,12,754.17 3,06,758.02Consumers' Contribution towards Capital AssetsOpening balance 5,46,306.01 4,86,545.19Add : Received/transferred during the year 1,00,342.53 1,08,609.31Less : Transferred to Statement of Profit and Loss (54,301.10) (48,848.48) Closing Balance 5,92,347.44 5,46,306.01 Total 9,05,101.60 8,53,064.03Refer Note No. 65

( in Lakhs)

287


21 Borrowings



Secured(a) Term Loans (i) From Banks 5,25,846.54 9,36,961.83 (ii) From Financial Institutions 1,70,889.23 2,27,149.73Unsecured(a) Term Loans (i) From Financial Institutions 35,524.28 11,350.96 (ii) From Gujarat State Financial Services 1,23,943.30 1,65,444.88(b) Loans from Related Party - Govt. of Gujarat (i) Loan for Power Purchase 8,750.00 9,100.00 (ii) State Government Loan under APDRP 2,125.47 3,230.55 (iii) Loan from Asian Development Bank 13,071.23 17,420.25 (iv) Term Loan from Govt. of Gujarat - Foreign currency loans 38,483.47 37,589.13 (v) Kisan Hit Urja Shakti Yojna (KHUSHY) Loan - 400.00

Total 9,18,633.52 14,08,647.34

( in Lakhs)


A MATURITY PROFILE OF SECURED & UNSECURED LOANSFor Financial Year 2019-2020

Particulars 2020-21 2021-22 2022-23 2023-24 &After

SECURED LOANSTerm Loan from Banks 67,592.05 1,30,797.14 1,36,142.35 2,58,907.05Term Loan from Financial Institutions 4,046.81 3,151.13 29,870.21 1,37,867.88UNSECURED LOANSGovt. of Gujarat (Related Party)Loan for Power Purchase 350.00 350.00 350.00 8,050.00State Government Loan under APDRP 1,105.08 913.23 879.35 332.89Loan From Asian Development Bank 4,349.01 3,394.74 3,394.74 6,281.74Term Loan from Govt. of Gujarat -Foreign currency loans 2,482.80 2,483.00 2,483.00 33,517.47Kisan Hit Urja Shakti Yojna (KHUSHY) Loan 400.00 - - -

( in Lakhs)

288


In respect of Parent GUVNL,

In case of Loan for Power Purchase Interest Rate is 10% p.a. and repayment to be done in Yearly instalmentupto FY 2046-47 (26 Nos. of Instalments Due after the Balance Sheet Date)

In case of Loan from ADB - 1803 Interest Rate is 11.36% p.a. and repayment to be done in Yearly instalmentupto FY 2023-24 (4 Nos. of Instalments Due after the Balance Sheet Date)

Common loans raised by GUVNL:

The Holding Company, GUVNL (erstwhile GEB) raised fund by issue of bonds as well as borrowing fromBanks, Financial Institutions, GoG and other Public Sector Undertakings for common usages of GUVNLand its subsidiaries which are engaged in generation, transmission and distribution. The repayment andinterest of these borrowings are reimbursed by such subsidiary companies to GUVNL. Facilities SharingAgreement between Bank, GUVNL and its subsidiaries have been executed. Consequently, the part amountof loan outstanding from Banks and Financial Institutions are disclosed under the head ‘Long Term Borrowings/ Short Term Borrowings’ and maturity pattern, terms of repayment and security as disclosed below are asper the information provided by GUVNL.


Loan from Financial Institutions - 7,600.00 7,600.00 20,324.28Loan from Gujarat State Financial Services 1,19,335.02 70,563.27 17,129.30 36,250.73

TOTAL 1,99,660.77 2,19,252.52 1,97,848.95 5,01,532.05

Details of Securities given of above Secured Loans is as follows:

In respect of subsidiary GETCO,

State Bank of India TL - II(Sanctioned Limit 400 Cr.) (TermLoan is secured by hypothecation/ mortgage charge on Upcomingassets of Substations along with itsassociated transmission linescovered under Amreli Circle,Palanpur Circle and TransmissionLines covered under Anjar Circleand Palanpur Circle)

No of Instalment /Type

Inst. AmountBalance

outstanding as on31.3.2020

Rate of Interestas on 31.03.2020

Term Loans

7.50% 13,000.00 13/ Quarterly 1,000.00

289


State Bank of India TL - III(Sanctioned Limit 400 Cr.) (TermLoan is secured by hypothecation/ mortgage charge on Upcomingassets of Substations along with itsassociated transmission linescovered under Palanpur Circle,Navsari Circle, Anjar Circle,Bharuch Circle, Amreli Circle,Nadiad Circle, SurendranagarCircle, Jamnagar Circle andTransmission Lines covered underPalanpur Circle, Navsari Circle,Anjar Circle)

State Bank of India TL - IV(Sanctioned Limit 2000 Cr.)(Term Loan is secured byhypothecation / mortgage chargeon Upcoming assets of Substationalong with its associatedtransmission lines andTransmission Lines covered underMehsana, Amreli, Anjar, Bharuch,Gondal, Himmatnagar, Jambuva,Jamnagar, Nadiad,Surendranagar, Jamnagar,Junagadh & Palanpur Circle)

State Bank of India TL - V(Sanctioned Limit 305 Cr.) (TermLoan is secured by hypothecation/ mortgage charge on Upcomingassets of Substation along with itsassociated transmission lines andTransmission Lines covered underMehsana, Amreli, Gondal,Jambuva, Nadiad, Surendranagar,Junagadh & Palanpur Circle)

7.50% 5,455.09 6/ Quarterly " 5-1000.00 "Last-455.09

7.50% 73,897.37 15/ Quarterly " 14-5000.00 "Last-3897-37

7.50% 17,861.00 22/ Quarterly " 21-847.00 "Last-74.00


290


In respect of subsidiary GSECL,

(A) Banks (Secured Loan)

Maturity Period(in Quarters)

OutstandingAmount

InterestRatesName of FI/Banks

( in Lakhs)Instalment

Amount(Per Quarter)

(i) SBI - Unit no. 6 of Ukai TPSMortgage against Movable andImmovable Property of Unit no.6 of Ukai TPS

31.03.2020 7.50% 46,300.00 8 5,700.0031.03.2019 8.25% 92,578.72 16 5,700.00

(ii) SBI - Corporate LoanMortgage against Movable andImmovable Property of Unit1 to 7 of Wanakbori TPS,Unit 1 to 5 of Ukai TPS,Kadana & Ukai Hydro PowerStations

31.03.2020 7.50% 63,500.00 12 5,250.0031.03.2019 8.25% 1,06,271.26 20 5,250.00

8.10% 1,51,351.75 22/ Quarterly 6,879.63

Rural Electrification- (SanctionedLimit 3808.08 Cr.) (Term loan isto be secured by hypothecation ofexisting assets long with itsassociated transmission linescovered under Amreli Circle, AnjarCircle, Bharuch Circle, GondalCircle, Himmatnagar Circle,Jambuva Circle, Jamnagar Circle,Mehsana Circle, Nadiad Circle,Navsari Circle and SurendranagarCircle)


291



(iii) SBI - Unit no. 8 of Wanakbori TPSMortgage against Movable andImmovable Property of Unitno. 8 of Wanakbori TPS

31.03.2020 7.50% 1,55,423.42 38 6,190.0031.03.2019 8.25% 1,58,739.67 42 6,190.00

(iv) SBI - Unit no. 3 & 4 of Sikka TPSMortgage against Movable andImmovable Property of Unitno. 3 & 4 of Sikka TPS

31.03.2020 7.50% 75,126.31 36 5,487.5031.03.2019 8.25% 1,19,893.80 44 5,487.00

(v) Dena Bank - Unit no. 3 ofDhuvaran GBPSMortgage against Movable andImmovable Property of Unitno. 3 of Dhuvaran GBPS

31.03.2020 - - - -31.03.2019 8.30% 5,663.48 23 375.00

(vi) Canara Bank - Unit no. 3 ofDhuvaran GBPSMortgage against Movable andImmovable Property of Unitno. 3 of Dhuvaran GBPS

31.03.2020 - - - -31.03.2019 8.35% 7,498.28 7 500.00

(vii) Bank of Baroda - Unit no. 3of Dhuvaran GBPSMortgage against Movable andImmovable Property of Unitno. 3 of Dhuvaran GBPS

31.03.2020 - - - -31.03.2019 8.30% 10,300.41 23 875.00

292



(viii) Bank of Baroda - Unit no. 8 ofWanakbori TPSMortgage against Movable andImmovable Property of Unitno. 8 of Wanakbori TPS

31.03.2020 7.55% 15,009.48 36 1,875.0031.03.2019 8.30% 31,884.48 44 1,875.00

(ix) Vijaya Bank - Unit no. 3 ofDhuvaran GBPSMortgage against Movable andImmovable Property of Unitno. 3 of Dhuvaran GBPS

31.03.2020 - - - -31.03.2019 8.40% 5,287.88 7 375.00

(x) Corporation Bank - Unit no. 8of Wanakbori TPSMortgage against Movable andImmovable Property ofUnit no. 8 of Wanakbori TPS

31.03.2020 - - - -31.03.2019 8.20% 7,742.34 44 33.62

(xi) SBI- Unit No. 1 & 2 ofBhavnagar Lignite TPSMortgage against Movable andImmovable Property of UnitNo. 1 & 2 of Bhavnagar Lignite TPS

31.03.2020 7.65% 1,25,136.62 73 77.2431.03.2019 8.25% 1,96,040.02 77 73.17

(xii) Bank of India- Unit No. 1 & 2of Bhavnagar Lignite TPSMortgage against Movable andImmovable Property of Unit

293



No. 1 & 2 of Bhavnagar Lignite TPS31.03.2020 - - - -31.03.2019 8.50% 75,505.31 77 28.16

(xiii) Vijaya Bank- Unit No. 1 & 2 ofBhavnagar Lignite TPSMortgage against Movable andImmovable Property of UnitNo. 1 & 2 of Bhavnagar Lignite TPS

31.03.2020 - - - -31.03.2019 8.65% 20,390.16 77 7.60

(xiv) Canara Bank- Unit No. 1 & 2of Bhavnagar Lignite TPSMortgage against Movable andImmovable Property of UnitNo. 1 & 2 of Bhavnagar Lignite TPS

31.03.2020 - - - -31.03.2019 8.35% 20,227.01 77 7.60

(xv) Dena Bank-Unit No. 1 & 2 ofBhavnagar Lignite TPSMortgage against Movable andImmovable Property of UnitNo. 1 & 2 of Bhavnagar Lignite TPS

31.03.2020 - - - -31.03.2019 8.30% 34,761.04 77 12.96

Total Borrowings (A)31.03.2020 4,80,495.8331.03.2019 8,92,783.85

294


(B) Financial Institutions (Unsecured Loan)

Maturity Period(in Months)

OutstandingAmount

InterestRatesGujarat State Financial Services

( in Lakhs)

InstalmentAmount

(i) GSFS-931.03.2020 7.00% 8,000.00 8 1,000.0031.03.2019 7.75% 20,000.00 20 1,000.00

(ii) GSFS-1780 (885)31.03.2020 7.00% 32,777.78 20 1,638.8931.03.2019 7.75% 52,444.44 32 1,638.89

(iii) GSFS-1780 (100)31.03.2020 7.00% 5,740.74 31 185.1831.03.2019 7.75% 7,962.96 43 185.18

(iv) GSFS-300-10031.03.2020 7.00% 9,583.33 36 208.3331.03.2019 7.75% 10,000.00 48 625.00

(v) GSFS-300-20031.03.2020 7.00% 20,000.00 48 416.6731.03.2019 - - - -

(vi) GSFS-28631.03.2020 - - - -31.03.2019 7.75% 7,500.00 3 2,500.00

Total Borrowings (B)31.03.2020 76,101.8531.03.2019 97,907.40

Total Borrowings (A+B)31.03.2020 5,56,597.6831.03.2019 9,90,691.26

In respect of Subsidiary PGVCL,

Some of the assets viz. Plant and Machinery, Hydraulic works, lines and cables, furniture and fixtures andoffice equipments are given as security to the Banks for the loans raised by Holding Company i.e. GUVNL.Charges created in respect of these assets as well as charges in respect of loan from Power FinanceCorporation (PFC), Bank of Baroda & Bank of India availed by the PGVCL are as under :


295


Name of the Bank in whosefavour charges is created

Location at which the assets are inexistence and on which the

charge is created

Loans Allocated by GUVNLUCO Bank Consortium 71,400.00 Current AssetsLoans Availed by PGVCLPower Finance Corporation 30,535.00 Charge on the asset which are acquired out

of the term loan.Bank of India 15,000.00 Charge on the asset which are acquired out

of the term loan.

In respect of Subsidiary UGVCL,

Loan from PFC is secured against 1st hypothecation of assets constructed or under construction, under thenew financed assets under RAPDRP-A and SCADA-A projects. As per PFC letter no. 04:06:R-APDRP:2016-17:Vol-V:G15/45526 dated 03.02.2017 and letter no. 04:06:R-APDRP:G15:2018-19/058176 dated01.08.2018, as the loan is to be converted into grant as the project is successfully completed within theextension provided by the PFC, the re-payment made till date against this loan has been considered asrepayment towards Loan’s Principal Amount.

In respect of Subsidiary MGVCL,

Loan from Bank of Baroda outstanding 2,729.30 Lakhs, (P.Y. 3,996.62 Lakhs) is secured againsthypothecation charge on movable assets of projects under NEF scheme. Outstanding amount repayable in29 monthly instalments of 95.25 Lakhs each. Rate of interest 8.50% p.a. Loan from PFC under R-APDRP Scheme, outstanding 5,925.90 Lakhs (P.Y. 6,484.30 Lakhs) is secured against charge ofPlant and Machinery and lines and cables of Anand & Nadiad City Division of MGVCL.

As per terms of R-APDRP Part-A, the loan of MGVCL of 5,554.55 Lakhs will be converted into capitalgrant on fulfilment of stipulated conditions. If conditions are not fulfilled, the loan is repayable in remaining29 monthly instalments over a period of 3 years an average of 191.54 Lakhs each. The current outstandingof R-APDRP Part-A loan amounts to 2,330.32 Lakhs (P.Y. 2330.32 Lakhs)

As per terms of SCADA Part-A, the loan of MGVCL of 277.99 Lakhs (P.Y. 689.35 Lakhs) may beconverted into capital grant on fulfilment of stipulated conditions. If conditions are not fulfilled, the loan isrepayable in 40 monthly instalments over a period of 4 years at an average of 17.52 Lakhs each startingfrom January 2017.

Amount for which thecharge is created

( in lakhs)


296


As per terms of R-APDRP of Part-B Scheme, the loan of MGVCL of 1,105.20 Lakhs will be converted intoGrant upto 50% on fulfilment of stipulated conditions. The loan will be repaid in 140 monthly instalmentsover a period of 14 years at an average of 7.62 Lakhs. Further 1,525.00 Lakhs disbursed for AdditionalAnand & Dahod town and SCADA under RAPDRP -Part B, it will be converted into Grant upto 50% onfulfillment of stipulated conditions. The loan will be repaid in 150 monthly installments over a period of 15years at an average of 10.17 Lakhs, starting from March-2021; if conditions are not fulfilled, starting fromJune 2021. The current outstanding of R-APDRP Part-B and new loan amounts to 2,372.44 Lakhs (P.Y.

2,487.94 Lakhs) and outstanding of SCADA under R-APDRP Part-B loan amounts to 945.14 Lakhs(P.Y. 976.69 Lakhs). Rate of Interest 9% p.a.

In respect of subsidiary DGVCL,

Loan from PFC Financial Institution, outstanding 4,032.70 lakhs as on 31.03.2020 ( 4,320.40 as on31.03.2019) mentioned at Note above, is secured against charges on the (A) The whole R-APDRP movableproperties of the newly finance assets under the project comprising of Hardware, Software, BandwidthCharges, Implemention cost, GIS Survey Cost, System Metering Cost etc. created / to be created out of theabove loans to be installed at 11 Towns namely Surat, Jambusar, Bardoli, Rajpipala, Navsari, Vyara, Vapi,Valsad, Billimora, Bharuch and Ankleshwar under the Company,includig its movable plant & machinary,machinary spares, tools and accessories, plant turbine and other various equipments, both present andfuture as well as on the existing movable assets comprising PV Modules, Lamps Lead Acid Battary, controlElectronics, Module mounting Hardware, Battery Box interconnecting wires/cables, swithches etc of solarGenerating Equipments of Rajpipala (O & M) division of the Company.(B) The Whole of the movable propertiesof the newly financed assets to be created at Surat, jambusar, Vyara, Vapi, Valsad, Billimora and Bharuchincluding movable plant & machinery, machinery spares, tools and accessories,spares and material atabove mentioned project sites both present and future and the entire existing assets (Over head lines of13.2 KV to 66 KV ) at Rajpardi-Sub Division pf Rajpipla O & M Division, Bharuch Circle. (C) The whole of themovable assets of the R-APDRP (SCADA) project site, present and future and the existing assets at Rajpipla-1 subdivision of Rajpipla O & M division ( overhead lines on RCC support-11 Kv), Bharuch Circle and deedof undertaking given by Goverment of Gujarat.

As per the PFC letter no. 02:10: R-APDRP (P-A):2009: Utilities dated, 11.07.2013, The financial assistanceas availed from PFC towards the R-APDRP project as loan along with the interest thereon shall be convertedinto the grant once the establishment of the required system is achieved and verified by an independentagency appointed by the Ministry of Power (MoP). No conversion to grant will be made in case the projectsare not completed within the period of 5 years. Till the completion of the project, the said financial assistanceis treated as loan and accordingly the interest has been accrued and accounted. The moratorium period ofthe said loan is of 5 years.


297


Furthermore the work of R-APDRP Part B SCADA has been completed in Nov-17 and as per the OfficeMemorandum No. 26.01.2015-IPDS (Vol – IV) – Part (1), Government of India, Ministry of Power Dtd:24.06.2019, the time limit extension for conversion of Part A- Scada has been extended.

Registration of Charge on Assets

The Group has, under a scheme of transfer, acquired the properties, which are subjected to chargescreated by the erstwhile GEB. As per the provisions of the Companies Act, the group is required to registerthe charges in respect of all such assets with the Registrar of Companies. Due to the common funds for allthe operations of erstwhile GEB, funds were raised against the charge over all its assets. The Group,therefore has not registered the charge on these properties with the Registrar of Companies, Gujarat.

Secured and Unsecured Loans:

The loans which were raised by erstwhile G.E.B. from State Goverment (loan under APDRP) relating togeneration, transmission and distribution activities and were used for common purposes are continued inthe books of GEB / (now GUVNL) on behalf of all transferee companies and the same have been apportionedunder FRP Notification dated 3rd October, 2006, amongst all transferee companies and the same loanshave been accounted by the Company as “loans allocated by GUVNL” in separate accounts. The repaymentsand interest thereon are reimbursed by the subsidiaries to GUVNL.

In light of above note, the said loans are reclassified and regrouped either as secured loans or unsecuredloans and shown as Non current borrowings under Non-current liabilities and current borrowings undercurrent liabilities as per repayment schedule given by GUVNL.

Default in payment of Interest and Principal on Term Loans from Banks in respect of erstwhileBECL:Default for the year ended March 31st, 2019a Interest Default

Month Amount Due Date Date ofPayment

Delay(In Days)

( in Lakhs)

( in Lakhs)

Apr-18 921.66 01-05-2018 27-07-2018 861,164.13 01-05-2018 30-07-2018 89

452.22 01-05-2018 31-07-2018 902,538.00

May-18 385.28 01-06-2018 24-08-2018 831,760.93 01-06-2018 29-08-2018 88


298


536.74 01-06-2018 30-08-2018 89190.03 01-06-2018 01-09-2018 91

2,872.98Jun-18 777.88 01-07-2018 30-08-2018 59

1,063.90 01-07-2018 01-09-2018 61808.13 01-07-2018 11-09-2018 71

2,649.91Jul-18 761.87 01-08-2018 30-08-2018 28

1,045.47 01-08-2018 01-09-2018 30809.47 01-08-2018 11-09-2018 40

2,616.80Aug-18 804.65 01-09-2018 11-09-2018 9

804.65

b Principal Default

Period Amount Due Date Date ofPayment

Delay(In Days)

( in Lakhs)

( in Lakhs)

Quarter 1 of F.Y. 18-19 7,313.00 30-06-2018 01-09-2018 62

22 Trade Payables



Micro and Small Enterprises (refer note 28A) - -OthersAmount owing to Licensees 85.29 85.29

Total 85.29 85.29

( in Lakhs)

23 Other Non-Current Financial Liabilities



Staff Welfare Schemes 666.91 652.56Security Deposit from Consumers 6,59,811.92 5,97,224.56Lease Liability (Refer Note No. 57) 292.22 -

( in Lakhs)


299


Deposits for Electrification & Service connection 1,123.96 55.60Staff Voluntary Retirement cum Death Benefit Scheme 15,603.64 15,615.97Liabilities towards SKY scheme 18,917.62 9,833.91

Total 6,96,416.26 6,23,382.61

24 Long-Term Provisions



Provision for Employee BenefitsProvision for Leave Encashment 1,50,974.31 1,42,989.49

Total 1,50,974.31 1,42,989.49

( in Lakhs)

25 Deferred Tax Liabilities (Net)The following is the analysis of Deferred Tax Assets/(Liabilities) presented in the Balance Sheet:



Deferred Tax Liabilities 5,83,714.45 5,16,363.80Deferred Tax Assets 3,87,911.59 3,45,682.82

Total 1,95,802.86 1,70,680.98

( in Lakhs)


Recognized inOther

ComprehensiveIncome


OpeningBalanceParticulars

( in Lakhs)

ClosingBalance

Deferred Tax LiabilitiesProperty, Plant and Equipment 5,16,199.99 67,168.98 - 5,83,368.97Fair value of Investment at FVTOCI 163.80 - 181.68 345.48Deferred Tax Liabilities 5,16,363.80 67,168.98 181.68 5,83,714.45Deferred Tax Asset on account of:Employee Benefits 30,390.74 (9,071.16) 7,808.77 29,128.35Provision for Doubtful Debts 16,072.75 1,040.77 - 17,113.51Deferred Government grant 19,045.69 (3,387.06) - 15,658.63


300


Carried forward of unused Tax Losses 33,921.81 (8,643.49) - 25,278.32Unabsorbed Depreciation 1,26,924.98 26,366.24 - 1,53,291.22MAT Credit 1,13,611.04 25,158.70 - 1,38,769.73Carried forward of unused Tax Credits 1,443.77 3,017.97 - 4,461.74Others 640.24 (61.97) - 578.27Deferred Tax Assets 3,42,051.02 34,420.00 7,808.77 3,84,279.79Adjustment for Deferred tax assetnot recognised in previous year 3,631.80 3,631.80Amounts recognised inBalance Sheet 3,45,682.82 34,420.00 7,808.77 3,87,911.59Net Deferred Tax Liability 1,70,680.98 1,95,802.86Amounts not recognised inBalance Sheet (Refer Note A below) -


Recognized inOther

ComprehensiveIncome


OpeningBalanceParticulars

( in Lakhs)

ClosingBalance

Deferred Tax LiabilitiesProperty, Plant and Equipment 4,53,525.69 62,674.30 - 5,16,199.99Fair value of Investment at FVTOCI (120.50) - 284.30 163.80Deferred Tax Liabilities 4,53,405.19 62,674.30 284.30 5,16,363.80Deferred Tax Asset on account of: -Employee Benefits 33,665.66 (9,934.04) 6,659.12 30,390.74Provision for Doubtful Debts 25,093.77 (9,021.02) - 16,072.75Carried forward of unused Tax Losses 8,491.73 25,430.09 - 33,921.81Unabsorbed Depreciation 54,404.47 72,520.51 - 1,26,924.98MAT Credit 1,12,517.80 1,093.24 - 1,13,611.04Deferred Government grant 26,111.31 (7,065.62) - 19,045.69Carried forward of unused Tax Credits - 1,443.77 - 1,443.77Others 58.85 581.39 - 640.24Deferred Tax Assets 2,60,343.58 75,048.32 6,659.12 3,42,051.02Adjustment for Deferred tax assetnot recognised in previous year 3,631.41 3,631.80Net Deferred Tax Liability 1,93,061.61 (12,374.02) (6,374.82) 1,74,312.78Amounts not recognised inBalance Sheet (Refer Note A below)


301


A In Holding Company GUVNL and Subsidiary Company DGVCL due to uncertainty about earningssufficient taxable income in forseeable future to utilise such deferred tax asset, recognition of thesame has been restricted to the extent of Deferred Tax Liabilities. Further additionally in case ofSubsidiary MGVCL and UGVCL, the Company had net deferred Tax Assets on account of unabsorbeddepreciation and Unused Tax Credit as at the year ended 31st March 2019 and in the absence ofreasonable certainty and convincing evidence of sufficient future taxable income, net deferred taxasset was not recognized in the previous financial year.

26 Other Non Current Liabilities



Deposits for Execution of Job/Works 2,78,036.62 2,26,001.03Deposits for Electrification & Service connection 21,472.06 16,212.59Other Liabilities 34.49 -

Total 2,99,543.17 2,42,213.63

( in Lakhs)

27 Short Term Borrowings



Loans repayable on DemandSecuredCash Credit From Banks 24,019.48 35,563.42

Total 24,019.48 35,563.42

( in Lakhs)

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

28 Trade Payables



Trade payables- Micro, Small and Medium Enterprises 1,014.09 1,322.95 - Others 10,53,177.64 7,04,147.27

10,54,191.73 7,05,470.22

( in Lakhs)


302


Trade payables - O & M Supplies / Works 3,527.16 2,456.68 - Fuel 67,212.48 90,300.61 - Purchase of Power 9,81,123.80 6,12,228.70 - Others 2,328.29 484.24

Total 10,54,191.73 7,05,470.22

Trade Payables - Total outstanding dues of Micro &Small Enterprises



Principal amount and the interest due thereon remaining unpaidto any supplier at the end of each accounting year 1,014.09 1,322.95

Interest paid by the Company in terms of Section 16 of Micro,Small and Medium Enterprises Development Act, 2006, alongwith the amount of the payment made to the supplier beyond the appointed day during each accounting year; - -

Interest due and payable for the period of delay in makingpayment (which have been paid but beyond the appointed dayduring the year) but without adding the interest specified under

Micro, Small and Medium Enterprises Development Act, 2006 - -



( in Lakhs)

A DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and MediumEnterprises Development Act, 2006” has been determined to the extent such parties have beenidentified on the basis of information available with the Company. The disclosures relating to Microand Small Enterprises are as below:

No interest during the year has been paid to Micro and Small Enterprise on delayed payments. FurtherInterest Accrued during the year and remaining unpaid is not provided in the books as the managementis of the opinion that due to contractual terms they will not be required to pay the same.


303


29 Other Current Financial Liabilities



Current maturities of Long Term Debt:Secured:Term Loans From Banks 67,592.05 1,30,670.06Loan from Financial Institutions 4,046.81 32,403.35

Unsecured:Govt. of Gujarat (Related Party)

(i) Loan for Power Purchase 350.00 350.00(ii) Loan from Asian Development Bank 4,349.02 4,349.02(iii) Loan from Asian Development Bank - Foreign Currency 2,482.80 2,278.13(iv) KHUSHY Loan 400.00 400.00(v) Loan under APDRP Scheme 1,105.08 1,105.07(vi) Loan from Gujarat State Financial Services 1,19,335.02 1,14,168.41

Interest Accrued & Due on Loan for SKY Scheme 716.86 24.81Interest accrued but not due on Loans 19,356.42 20,584.15Interest Accrued and Due on Loans from Banks 715.62 6,897.99Liability for Stale Cheques 629.26 825.58Interest payable on consumers security Deposit 33,962.59 28,830.58Liability for O&M Supplies/Works 24,287.18 44,786.64Staff Related Liabilities 1,009.79 628.18Staff Retirement cum Death Benefit Scheme 1,017.48 875.56Unclaimed amount relating to Bonds 262.39 264.89Deposits & Retentions from Suppliers / Contractors 3,38,928.69 3,56,672.64Pending utilisation of Grant received (net off expenditure)for solar energy pump set/solar home light/Sky Scheme/Surya Gujarat Scheme) 4,119.23 5,449.20Payable to Gujarat Energy Training & Research Institute 178.77 -Deposits for Electrification & Service connection 37,265.69 40,471.33Current Maturity of Lease Liability (Refer Note No. 57) 5.85 -Outstanding liability for expenses 1,96,935.64 1,59,218.01Grant Unallocated 872.54 91.35

( in Lakhs)


304


Loan under SKY scheme 2,968.61 1,484.56Corpus Fund of Bal Urja Rakshak Dal 55.32 52.51Board of Trustees----CPF 752.29 541.02Liability for Capital Supplies / Works 42,656.65 55,180.41Amount payable to EESL 871.44 1,566.22Staff Welfare Scheme 844.31 753.00Liquidated Damages 63,739.95 51,267.31Deposits for execution of Job Works 5,402.69 4,549.85Other Liability 9,325.02 4,893.45

Total 9,86,541.08 10,71,633.29

A DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The amount due to Micro and Small Enterprises as defined in the “The Micro, Small and MediumEnterprises Development Act, 2006” has been determined to the extent such parties have beenidentified on the basis of information available with the Company. The disclosures relating to Microand Small Enterprises are as below:

Trade Payables - Total outstanding dues of Micro &Small Enterprises



Principal amount and the interest due thereon remaining unpaidto any supplier at the end of each accounting year 5,934.60 13,245.61

Interest paid by the Company in terms of Section 16 of Micro,Small and Medium Enterprises Development Act, 2006,

Along with the amount of the payment made to the supplierbeyond the appointed day during each accounting year; - -

Interest due and payable for the period of delay in makingpayment (which have been paid but beyond the appointed dayduring the year) but without adding the interest specified underMicro, Small and Medium Enterprises Development Act, 2006 - -



( in Lakhs)


305


No interest during the year has been paid to Micro and Small Enterprise on delayed payments. FurtherInterest Accrued during the year and remaining unpaid is not provided in the books as the managementis of the opinion that due to contractual terms they will not be required to pay the same.

30 Other Current Liabilities



Statutory Liabilities 9,496.32 7,962.99Subsidy/Grants received in advance 2,937.85 3,981.52Advances received 1,804.67 5,906.09Income Received in Advance 1,02,512.70 1,35,131.68Other Liability 1,151.15 921.20Tax on Electricity Duty payable to State Govt. 74.52 314.30Payble to Gujarat Energy Training & Research Institute (GETRI) 36.60 -

Total 1,18,013.81 1,54,217.77

( in Lakhs)

31 Short Term Provisions



Provision for Employee BenefitsProvision for Gratuity - 16,050.34Provision for Leave Encashment 13,935.92 10,440.02Provision for Bonus 361.37 561.45Provision for CSR as per Ministry of Environment & Forest(Refer Note 48) 433.00 263.00

Total 14,730.29 27,314.81

( in Lakhs)

32 Current Tax Liabilities (Net)



Current Tax LiabilityWealth Tax payable - 1.74Current Tax AssetsTax Refund Receivable - -1.61 Total - 0.12

( in Lakhs)


306


33 Revenue from Operations ( in Lakhs)For the yearended 31st

March, 2020



Income from Operating ActivityRevenue from Sale of PowerResidential General Purpose 6,93,564.86 6,15,082.04General Lighting Purpose 19,142.66 16,837.50Non-residential General Purpose & LT Medium Demand 9,74,451.29 8,77,917.51HT Industrial 24,09,931.87 23,42,042.97Public Lighting 15,426.66 14,614.42Traction Railways 567.49 723.83Irrigation Agricultural 6,20,846.88 6,50,137.56Public water works and sew.pumps 1,21,837.17 99,891.20Revenue from Sale of Electrical Energy 940.49 781.14Sale of Power through Power Exchanges & Bilateral Agreements 16,306.89 10,812.79Supply in Bulk-Licensee 555.56 656.66Less: Cash discount -141.22 -358.29

Sub Total 48,73,430.58 46,29,139.33

Electricity DutyElectricity Duty Assessed 5,14,832.49 4,72,222.23Less: Electricity Duty Assessed (Contra) -5,14,832.49 -4,72,222.23

Sub Total - -

Sale of ServicesRevenue from Transmission Charges 58,512.47 46,736.61Parallel operation charge 11,735.01 5,486.91SLDC fees & charges 1,446.53 405.50Net Unscheduled Interchange Income 16,112.74 8,275.60

Sub Total 87,806.76 60,904.62

Income from Other Operating ActivityMeter Charges / Service line charges 75.93 22.37Recoveries for theft of power / Malpractices 15,187.01 15,561.34Wheeling Charges Recoveries 349.28 47.28


307


Delayed payment charges from consumers 25,427.69 21,288.49Operation & Maintenance charges 2,091.69 3,232.22Cross Subsidy Surcharge 40,466.54 14,979.89Addl. Surcharge - OA Consumers 2,601.32 4,893.41Agriculture Subsidy 1,00,833.33 1,10,000.00Misc. Charges from Consumers 23,898.06 22,398.09Rebate (Cash Discount) for Prompt Payment 43,469.40 48,192.34Liquidated Damages 243.55 178.62CDM Benefit from Renewable Energy Sources 84.04 33.14Supervision Income from O&M activity 2,039.76 661.99Connectivity Charges for Solar 1,674.47 -Sale of Fly Ash 5,317.15 5,905.74Less: Transferred to Fly Ash Utilisation Reserve (1,314.82) (2,983.05)Reimbursement of O&M Expenses 4,063.56 -Reactive Charges Income 733.65 1,393.00Supervision Income from execution of Deposit work 1,536.67 -Income from trading activity 33,447.25 36,086.25

Sub Total 3,02,225.53 2,81,891.12

Total 52,63,462.87 49,71,935.08

Deviation Settlement Mechanism charges (UI) (Underdrawal/Overdrawal charges) have beenaccounted as provided by SLDC following the Deviation Settlement Mechanism (DSM).

34 Other Income ( in Lakhs)For the yearended 31st

March, 2020



Interest IncomeInterest on Staff Loans and Advances 1,525.27 2,063.13Interest on Advances to Others 676.13 2,474.36Interest on - IT Refund 1.70 -Interest Income from Fixed Deposits 43.43 441.14Interest Income from Investments 1,062.08 1,211.42

Dividend Income- From Investments 339.67 297.01


308


Other Non Operating IncomeDeferred Income 85,889.27 78,622.07Grant for energy conservation 292.96 225.38Grant received for R & D Expenses (refer note 50) 395.88 208.16Income from Sales -Stores, Scrap etc. 924.94 1,503.08Gain on Foreign Exchange Fluctuation 20.94 355.08Penalties received from supplier/contractor 12,737.67 4,177.47Provision no longer required 10,695.38 21,399.21Miscellaneous Income 16,321.78 17,427.04

Total 1,30,927.11 1,30,404.54

35 Cost of Fuel consumed ( in Lakhs)For the yearended 31st

March, 2020



Materials/Fuel Consumed-Coal 5,59,655.73 7,73,380.02-Oil 12,162.42 12,375.03-Gas 55,679.40 55,875.50-Water 13,300.44 15,875.16Other Fuel related cost 733.16 363.92Cost of Trading activity 30,705.83 32,948.84Lubricants and Consumables 1,629.18 1,918.20

Total 6,73,866.15 8,92,736.67

Gujarat Power Corporation Limited (GPCL) has been granted mining lease vide Industries and MinesDepartment, Government of Gujarat Order Number ''MCR-1093-(G-11)1318-CHH-1" dated ''04th June1998"s for Ghogha-Surkha Lignite Mine in Bhavnagar District of the Gujarat State for supplying Ligniteat erstwhile BECL. Lignite supply from the Mine was started from August 2018.

The Fuel Supply Agreement between GPCL and the GSECL for its BLTPS plant is under finalisation.During the F.Y. 2019-20, GSECL has considered the cost of lignite supplied from GPCL on the basisof the bills raised by GPCL for supply of lignite to BLTPS during F.Y. 2019-20. Change, if any, in therate of lignite will be accounted for in the year of finalisation of fuel supply agreement.


309


36 Purchase of Power ( in Lakhs)For the yearended 31st

March, 2020



From Central SectorNuclear Power Corporation of India Ltd. 1,51,189.34 90,612.24NTPC Ltd. 7,30,527.24 7,17,985.43Sardar Sarovar Narmada Nigam Ltd 13,097.67 1,862.13 Sub Total 8,94,814.26 8,10,459.80From Private SectorCLP India Pvt Ltd. - 43,915.94Essar (Vadinar) Ltd. 1,44,840.87 -ACB India Ltd. 26,346.07 30,999.53Adani Power Ltd. 4,22,558.82 4,11,479.94Coastal Gujarat Pvt. Ltd. 3,39,037.69 3,35,605.25 Sub Total 9,32,783.45 8,22,000.67From State SectorGujarat Industries Power Company Ltd. 1,00,976.83 98,180.66Gujarat State Energy Generation Ltd. (Hazira) 42,342.00 45,748.59Gujarat Mineral Development Corporation (GMDC) 13,422.55 21,265.11GPPC Pipavav 49,566.13 61,593.39 Sub Total 2,06,307.51 2,26,787.75From OtherWind Farms 3,11,946.02 2,81,564.22Purchase of Solar Power 2,24,150.93 2,12,097.32Purchase of Power from Non-Renewable Sources 3,64,441.00 63,411.06Captive Power Plants 126.88 666.14Power Exchange of India Ltd. 35.80 2,489.98Unscheduled Interchange Expense 12,684.36 -India Energy Exchange 61,564.93 2,97,426.82Short Term Purchase of Power 1,06,211.92 1,55,658.72 Sub Total 10,81,161.83 10,13,314.26Wheeling / Transmission Charges:Power Grid Corporation Ltd. 2,44,269.26 2,06,187.15 Sub Total 2,44,269.26 2,06,187.15

Total 33,59,336.31 30,78,749.64


310


37 Employee Benefits Expense ( in Lakhs)For the yearended 31st

March, 2020



Salaries and Allowances 3,60,054.08 3,38,179.50Contribution to PF & Other Trusts 33,288.25 35,533.68Staff Welfare Expenses 5,794.20 6,566.60Retirement and Other Benefits (refer Note 59) 44,908.29 31,169.26

Less : Directly attributable cost capitalised (refer note 1(C)(5.1)) (73,615.40) (73,076.73)

Total 3,70,429.42 3,38,372.31

38 Finance Cost ( in Lakhs)For the yearended 31st

March, 2020



Interest ExpenseInterest on State Government Loans 4,765.61 5,239.48Interest on Bonds 21,853.72 22,270.66Interest on bank loan 17,156.40 30,062.35Interest on Rural Electrification Corporation Loans andPower Finance Corporation 18,787.23 23,844.96Interest on Term Loans 52,982.31 69,857.14Interest on Other loans 1,957.64 1,163.94Interest to Consumers on Security Deposits etc. 37,438.47 31,978.76Interest on Income Tax 145.81 38.44

Other Borrowing CostLoss on Foreign Exchange Fluctuation 5,541.73 2,531.18Bank Charges, Commission and Others 994.62 911.39Others 9.97 -

Total (A) 1,61,633.53 1,87,898.31

Less : Directly attributable cost capitalised (refer note 1(C)(5.1)) (13,244.34) (21,937.92) Total 1,48,389.18 1,65,960.39


311


A Interest on PFC loan given for RAPDRP Project (as per the terms of the RAPDRP project), may bepartially converted into Grant by GOI on meeting the conditions of conversion from Loan to Grant andwill be treated as forgivable loan to that extent. In view of above, the total fund disbursed by PFC istreated as Borrowings and interest liability is shown under the head "Other Financial Liabilities".

39 Other Expenses ( in Lakhs)For the yearended 31st

March, 2020



Repairs & MaintenanceBuilding and Civil Works 7,688.64 9,766.56Plant and Machinery 61,850.27 49,977.22Sub Station Maintenance under Contract 19,829.59 17,028.21Lines, Cable Network etc. 19,684.02 19,030.96Others 4,328.21 4,941.62Administrative & General ExpensesRent, Rates and Taxes 2,911.69 3,610.95Insurance 4,250.73 1,882.25Testing Charges 508.08 466.00Telephone & Postage Expenses 1,475.93 1,656.05Remuneration to collection agencies 1,192.42 1,305.07Legal & Professional Fees 1,259.14 1,649.02Loss on sale of PPE (net of gain) 1,980.42 545.53Auditors' Remuneration 96.66 98.74Fee to Auditors for other works 0.03 0.06Consultancy Charges 1,295.24 919.30Technical Fees 225.76 140.94Other Professional fees and expenses 2,090.28 3,644.85Donation to CM Relief Funds 838.30 -Travelling & Conveyance 20,879.60 18,847.53Printing & Stationery 2,612.85 2,502.27Expenses on Computer Billing & EDP Charges 692.01 483.91Advertisement 899.13 971.07Entertainment Expense 27.74 32.54Electricity Charges 1,507.51 1,743.83Water Charges 610.79 591.12Corporate Social Responsibilities 1,162.21 1,101.42


312


Waiver of Delayed Payment Charges 1,954.20 4.52Guest House Expenses 312.75 303.00Security Expenses 10,040.60 9,637.95Freight Expense 2,007.59 1,958.79Expenditure on Training to Staff 508.16 589.19Expenses for Energy Conservation 133.70 98.12R & D Expenses 371.57 193.45Energy Conservation Expenses for Ujala Scheme 5.88 14.60Directors fees 7.30 7.02Other Administration & general Expenses 14,390.79 12,293.36Miscellaneous Expenses* 1,089.35 1,195.50Miscellaneous Losses & Write-offs 4,100.24 2,694.72Provision for -Bad & Doubtful debts 32,805.07 16,090.45Less : Directly attributable cost capitalised (refer note 1(C)(5.1)) (12,495.12) (12,373.12)

Total (A-B) 2,15,129.32 1,75,644.56

* None of items individually account for more than 1% of Total Revenue.

A During the year, an expenditure of 781.85 Lakhs (P. Y. 235.16 lakhs ) incurred towards EnergyConservation activities has been set off against the grant received from Govt. Of Gujarat for thispurpose.

B Payment to Auditors (Fees excluding applicable tax) ( in Lakhs)For the yearended 31st

March, 2020



Audit Fees 80.45 80.45Certifications 1.38 2.38Out-of-pocket & Other Expenses 3.79 2.85

40 Exceptional items ( in Lakhs)For the yearended 31st

March, 2020



Profit on sale of assets considered as held for sale (3,073.28) (4,364.89)

Total (3,073.28) (4,364.89)


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41 Tax Expense ( in Lakhs)For the yearended 31st

March, 2020



Current Tax 33,914.81 14,153.30Deferred Tax 32,748.58 (16,005.43)Earlier Years 5,960.38 (901.38)

Total 72,623.77 (2,753.50)

A Reconciliation of Current Tax ( in Lakhs)For the yearended 31st

March, 2020



Profit Before Tax 2,28,538.15 96,893.11Current Tax Expense calculated using applicable tax rate 39,930.19 20,678.93Add:Remeasurement of Defined Benefit Obligations (5,896.92) (5,377.84)MAT related adjustments - (924.82)Adjustments recognized in the current year in relation to thecurrent tax of prior years 366.49 (877.35)Provision for Doubtful Debts and unascertained liabilities (1,584.24) (651.89)Tax impact on Transition Adjustment 404.92 494.61Others 694.38 811.68 Current Tax Expense 33,914.81 14,153.30

Applicable Tax Rate- Normal 34.94% 34.61% Applicable Tax Rate- MAT 17.47% 21.34%

On 20th September, 2019, vide the Taxation Laws (Amendment) Ordinance 2019, the Government ofIndia inserted Section 115BAA in the Income Tax Act, 1961 which provides domestic companies anon-reversible option to pay corporate tax at reduced rates effective 01st April 2019 subject to certainconditions. However, the Group is having significant amount of unabsorbed depreciation on accountof additional depreciation and MAT credit entitlement at its disposal. Hence, the group has not exercisedthe option permitted under Section 115BAA. In view of the above, there is no impact of the new taxrate on the financial results for the year 2019-20.


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42 Earnings per Equity Share ( in Lakhs)For the yearended 31st

March, 2020



Profit After Tax for the year attributable to equity shareholders 1,55,915.09 99,646.62Weighted average number of Equity shares

Basic 21,17,67,82,287 17,87,88,00,487Diluted 21,29,30,53,953 17,89,35,76,477

Earnings per Equity Share ( ) Basic 0.74 0.56Diluted 0.73 0.56

Face Value per Equity Share ( ) 10.00 10.00

43 Employee Benefit Plans

A. Defined Contribution Plans:

The Group has certain defined contribution plans. The Group makes contribution towards Employees’Provident Fund, Employees’ Pension Scheme and Employees’ Death Linked Insurance Scheme.Contributions are made at specified percentage of salary as per regulations. The contributions aremade to registered provident fund administered by the Employees Provident Fund Organization (EPFO).The obligation of the group is limited to the amount contributed and it has no further contractual norany constructive obligation. The expenses recognised during the period towards defined contributionplan is 29,817.04 Lakhs (P.Y 31,976.88 Lakhs)

B. Other Long Term Benefit Plan:

The Group accounts for leave encashment on the basis of actuarial valuation carried out by LifeInsurance Corporation of India at each year end. Liability for the Current Year of 24,933.97 Lakhs(P.Y. 24,127.62 Lakhs) has been charged to statement of Profit & Loss. Leave obligation as at 31stMarch, 2020 and 31st March, 2019 is 164,910.24 Lakhs and 153,429.49 Lakhs respectively.

The Group has a Staff Voluntary Retirement-Cum-Death Benevolent Fund Scheme wherein anemployee can become a member voluntarily. A monthly contribution is to be made by the members.Upon retirement employee will be eligible to get an amount equivalent to his total “Contribution” alongwith simple interest at a specified rate from the date of joining the scheme or 10,000/- whichever ishigher. In case of death of an employee, the nominee of the member shall be eligible to get a determinedamount of compensation out of the fund, if the employee was the member of the scheme. The chargeto the statement of Profit and loss for the year ended is 544.07 Lakhs (P.Y. 628.91 Lakhs). The


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balance of such fund as at 31st March, 2020 and 31st March, 2019 is 16,316.18 Lakhs and 16,269.28Lakhs respectively.

C. Defined Benefit Plan

Gratuity

The Group provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees’who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuitypayable on retirement/termination is the employees’ last drawn basic salary per month computedproportionately for 15 days salary multiplied for the number of years of service. The Gratuity Plan is afunded plan and the Group makes contributions to LIC. The Group maintains a target level of fundingto be done over a period of time based on estimations of expected gratuity payments.Scheme is managed through own Gratuity Trust. The liability for gratuity is recognised on the basis ofactuarial valuation.

D. Risk Exposure:

These plans typically expose the Group to actuarial risks such as: Investment Risk, Interest RateRisk and Salary Risk.

Investment Risk The Present value of the Defined Benefit Obligation is calculated using the discountrate determined by LIC of India as the fund is being managed under Gratuity AssurancePlan.

Interest Risk A decrease in the interest rate will increase the plan liability while increase in interestrate will decrease the plan liability.

Salary Risk The present value of obligation is calculated by reference to future salary.

No other post-retirement benefits are provided to these employees.

In respect of the above plans, the most recent actuarial valuation of the plan assets and the presentvalue of the defined benefit obligation were carried out as at 31st March, 2020 by a member firm of theInstitute of Actuaries of India. The present value of the defined benefit obligation, and the relatedcurrent service cost and past service cost, were measured using the projected unit credit method .


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The principal assumptions used for the purposes of the actuarial valuations were as follows:.

Assumptions (Current Period)

Particulars For the year ended on 31st March

2020 2019

Expected Returns on Plan Assets 7.50% 8.00%Rate of Discounting 7.25% 7.50%Rate of Salary Increase 10% 10%Rate of Employee Turnover 1 to 3% Depending on Age



GratuityI) Reconciliation in Present Value Obligations (PVO)- defined Benefit ObligationOpening Defined Benefit Obligation 2,36,216.38 2,08,770.34Current Service Cost 11,760.23 10,044.98Interest Cost 17,125.69 15,657.78Remeasurement gain/(losses):Actuarial (Gains)/ Losses arising from experience adjustments,changes in demographic assumptions and Financial Assumptions 37,330.62 24,150.76Benefits paid -23,993.61 -22,407.48Closing Defined Benefit Obligation 2,78,439.31 2,36,216.37Current Obligation 23,593.94 20,745.16Non- Current Obligation 2,54,845.36 2,15,471.20

II) Change in Fair Value of Assets:Opening Fair Value of Plan Assets 2,20,166.04 2,02,417.47Expected return on Plan Assets 16,512.46 16,193.39Remeasurement Gain/(Loss):Acturial gains and losses including excess return on PlanAssets (excluding amounts included in Net Interest Expense) 3,579.94 -1,047.63Contributions by Employer 70,048.00 25,010.28Benefits Paid -23,993.62 -22,407.48Closing Fair Value of Plan Assets 2,86,312.83 2,20,166.04

( in Lakhs)


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III) Reconciliation of Present Value Obligations andFair Value Assets:Present Value of Funded Defined Benefit Obligation 2,78,439.31 2,36,216.38Fair Value of Plan Assets at end of Year 2,86,312.83 2,20,166.04Funded Status Funded FundedNet Liability arising from defined benefit obligation -7,873.51 16,050.34

IV) Service Cost:Current Service Cost 11,760.23 10,044.98Past Service Cost and Gain/(Loss) from Settlements - -Net Interest Expense 565.23 -545.91Total Expenses recognised In Statement of Profit and Loss 12,325.46 9,499.07Components of defined benefit costs recognised inEmployee Benefit expenses Remeasurement on thenet defined benefit liability:Actuarial (gains) / losses arising from experience adjustments,changes in demographic assumptions and changes in financialassumptions including Return on Plan Assets excluding amountincluded in net interest cost 33,750.68 25,198.39Total Expense to be recognised in OCI 33,750.67 25,198.39Total Expenses (Provision for Period) 46,076.13 34,697.46

V) Category of assets as at 31st March:Life Insurance Corporation 2,86,312.83 2,20,166.04

Total Gratuity 2,86,312.83 2,20,166.04

On Plan Liabilities Loss/ (Gain)

On Plan Assets Loss/ (Gain)

Experience Adjustment

As on 31st March, 2020 37,330.62 3,579.94As on 31st March, 2019 24,150.76 -1,047.63As on 31st March, 2018 51,235.15 2,464.57As on 31st March, 2017 13,584.16 444.33As on 31st March, 2016 4,828.21 1,077.31

( in Lakhs)


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Gratuity As at31st March, 2020


Less than one year 23,593.94 20,745.17One to Three Years 35,860.98 29,089.81Three to Five Years 33,785.60 48,376.69More than Five Years 1,85,198.79 1,38,004.70

Total 2,78,439.31 2,36,216.37

( in Lakhs) Maturity Analysis of Projected Benefit Obligation are as under:

Significant Acturial Assumptions As at31st March, 2020


Discount RateImpact due to increase of 50 basis point -12,940.13 -12,915.20Impact due to decrease of 50 basis point 13,645.69 13,847.66Salary IncreaseImpact due to increase of 50 basis point 13,458.16 13,689.24Impact due to decrease of 50 basis point -12,905.71 -12,892.05

( in Lakhs) Sensitivity Analysis for Gratuity

The sensitivity analysis presented above may not be representative of the actual change in the definedbenefit obligation as it is unlikely that the change in assumptions would occur in isolation of oneanother as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefitobligation has been calculated using the projected unit credit method at the end of the reportingperiod, which is the same as that applied in calculating the defined benefit obligation liability recognisedin the balance sheet.

E. GEB Employees’ Group Gratuity Trust (“the Trust”) is an exempted Gratuity Trust under the IncomeTax Act, 1961 established to manage the Gratuity obligations of the employees of GUVNL and itsSubsidiary Companies. GUVNL, the Holding Company is managing the same for and on behalf ofitself and its six Subsidiary Companies. The Trust has an arrangement with M/s. Life InsuranceCorporation of India (LIC) for the fund management based on actuarial determination of liability andthe funds to be contributed.

Given the above structure and arrangement among GUVNL Group Companies, the overall Gratuity


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Liability or Asset (as the case may be) of the GUVNL Group, is reflected in GUVNL Books. Theindividual subsidiary Company(s) reflect the expense in its books and the Liability / Asset to / fromGUVNL, given the above arrangement alongwith the disclosures in compliance with the applicableInd AS 119 – Employee Benefits.

The following is the position of Gratuity related Asset / Liability reflected in the books of GUVNL, aspertaining to individual companies:

Company pertaining to: As at31st March, 2020


Gujarat Urja Vikas Nigam Limited 2.27 (16.14)Gujarat State Electricity Corporation Limited 589.36 (671.97)Gujarat Energy Transmission Corporation Limited 1,786.49 (3,382.86)Dakshin Gujarat Vij Company Limited 1,004.15 (2,087.15)Madhya Gujarat Vij Company Limited 1,032.50 (2,126.68)Paschim Gujarat Vij Company Limited 2,126.04 (4,740.72)Uttar Gujarat Vij Company Limited 1,332.71 (3,024.83)

Total 7,873.52 (16,050.34)

( in Lakhs)Asset / (Liability) - Net

44 Segment Reporting

A Operating Segment

The Group’s operations fall under segment namely “Generation, Transmission, Distribution and BulkPurchase & Sale (Trading) of Power”, taking into account the different risks and returns, the organizationstructure and the internal reporting systems.

B Information about Major Customers

The Group is not reliant on revenues from transactions with any single external consumer and doesnot receive 10% or more of its revenues from transactions with any single external consumer.

C Information about Geographical Areas

Segment Revenue from “Sale of Power” represents revenue generated from external customerswhich is fully attributable to the Group’s country of Domicile i.e. India.

All assets are located in the Group’s Country of Domicile.

D Information about Products and Services:

The Group derives revenue from Sale of Power. The information about revenues from external


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customers about each product is disclosed in Note No.33 of the Financial Statements.

45. Financial Instrument Disclosure

A Capital Management

The Group’s objective when managing capital is to:

1. Safeguard its ability to continue as going concern so that the Group is able to provide maximumreturn to shareholders and benefits for other stakeholders and;

2. Maintain an optimal capital structure to reduce the cost of capital.

The Group’s Financial Management Committee reviews the capital structure on a regular basis.As part of this review, the management considers the cost of capital, risks associated with eachclass of capital requirements and maintenance of adequate liquidity.

Gearing Ratio

The gearing ratio at end of Reporting Period is as follows:



Debt ( in Lakhs) 11,18,294.31 16,94,371.38Total Equity ( in Lakhs) 40,23,031.08 35,05,852.27Debt to Equity Ratio 0.28 0.48

1. Debt is defined as all Long Term Debt outstanding + Short Term Debt outstanding in lieu of LongTerm Debt.

2. Equity is defined as Equity Share Capital + Other Equity + Deferred Government Grant and ConsumerContribution.



Financial AssetsMeasured at Amortised Cost(a) Trade and other Receivables 3,98,989.63 3,35,883.53(b) Cash and Cash Equivalents 19,653.65 35,761.20(c) Other Bank Balances 4,126.21 3,028.07(d) Loans 14,768.65 16,679.58(e) Other Financial Assets 3,56,805.42 4,62,218.77

( in Lakhs)B Categories of Financial Instruments


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Measured at FVTOCI(a) Investments in Equity Instruments 36,617.34 41,074.81(b) Investment in GOI Special Bonds 13,041.89 12,520.85

Accounted Under Equity Method(a) Associate- GIPCL 73,747.80 68,988.85(b) Joint Venture- MGCL - -

Financial LiabilitiesMeasured at Amortised Cost(a) Borrowings 9,42,653.00 14,44,210.76(b) Trade Payables 10,54,277.03 7,05,555.52(c) Other Financial Liabilities 16,82,957.34 16,95,015.89

C Financial Risk Management Objectives

The Group’s principal financial liabilities comprise of borrowings, trade and other payables. The mainpurpose of these financial liabilities is to finance the Group’s operations, routine and capital expenditure.The Group’s principal financial assets include loans, advances, trade and other receivables and cashand cash equivalents that derive directly from its operations.

The Group’s activities expose it to a variety of financial risks viz regulatory risk, interest rate risk, creditrisk, liquidity risk etc. The Group’s primary focus is to foresee the unpredictability of financial marketsand seek to minimize potential adverse effects on its financial performance. The Group’s seniormanagement oversees the management of these risks. It advises on financial risks and appropriatefinancial risk governance framework for the Group.

Regulatory Risk

The Group’s substantial operations are subject to regulatory interventions, introduction of new lawsand regulations including changes in competitive framework. The rapidly changing regulatory landscapeposes a risk to the Group.

Regulations are framed by Central / State Regulatory Commission as regard to Standard of Performancefor utilities, Terms & Conditions for determination of tariff, obligation of Renewable Energy purchase,grant of Open Access, Deviation Settlement Mechanism, Indian Electricity Grid Code / Gujarat GridCode, Power Market Regulations etc. Moreover, the State / Central Government are notifying variousguidelines and policy for growth of the sector. These Policies / Regulations are modified from time totime based on need and development in the sector. Hence the policy / regulation is not restricted only


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to compliance but also have implications for operational performance of utilities, Return on Equity,revenue, competitiveness, scope of supply as consumer of 1 MW and above have an option to selectthe supplier, ceiling on trading margins, Regulatory charges, market etc.

To protect the interest of Utilities, State Utilities are actively participating in the process of framing ofRegulations. ARR is regularly filed & FPPPA is levied on quarterly basis for any increase/decrease inpower purchase cost.

Foreign Exchange Risk

The Subsidiary Company GETCO is exposed to foreign exchange risks arising from various currencyexposures, primarily with respect to the USD and EUR. Foreign exchange risks arise from futurecommercial transactions and recognized assets and liabilities, when they are denominated in a currencyother than Indian Rupee.

The Subsidiary Company GETCO’s exposure with regards to foreign exchange risk which are nothedged is given below. However, these risks are not significant to the company’s operation.

Nature of Transactions As at31st March, 2020


Loan from Government of Gujarat- KfW EURO 4,27,74,626.00 1,46,08,253.00Loan from Government of Gujarat-AsianDevelopment Bank (ADB) USD 5,43,42,088.34 5,76,35,550.94Interest charges payable - ADB USD 3,65,025.96 5,57,551.38Interest and commitment charges payable -KfW Loan EURO 1,86,362.00 57,547.00

Currency

Interest Rate Risk Management

Interest Rate Risk is the risk that the fair value or future cash flows of a financial instrument willfluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes inmarket interest rates is negligible as primarily to the Group’s long-term debt obligations with fixedinterest rates.

Credit Risk Management

Credit Risk arises from cash and cash equivalents and deposits with banks as well as customersincluding receivables. Credit risk management considers available reasonable and supportive forward-looking information including indicators like external credit rating (as far as available), macro-economicinformation (such as regulatory changes, government directives, market interest rate).


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The concentration of credit risk is limited due to the fact that the customer base is large. None of thecustomers accounted for more than 10% of the receivables and revenue for the year ended 31st

March, 2020 and 31st March, 2019.

Bank balances are held with reputed and creditworthy banking institutions.

Liquidity Risk Management

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associatedwith its financial liabilities that are required to be settled by delivering cash or another financial asset.The Group manages liquidity risk by maintaining sufficient cash and cash equivalents including bankdeposits and availability of funding through an adequate amount of committed credit facilities to meetthe obligations when due. The management prepares annual budgets for detailed discussion andanalysis of the nature and quality of the assumption, parameters etc. Daily and monthly cash flowsare prepared, followed and monitored at senior levels to prevent undue loss of interest and utilizecash in an effective manner.

The following tables detail the Group’s remaining contractual maturity for its non-derivative financialliabilities with agreed repayment periods. The information included in the tables have been drawn upbased on the undiscounted cash flows of financial liabilities based on the earliest date on which theGroup can be required to pay. The tables include both interest and principal cash flows. The contractualmaturity is based on the earliest date on which the Group may be required to pay.

Particulars TotalMore than5 years

Between 1 and5 years

Less than 1year

As at 31st March, 2020Non - Current Financial Liabilities Borrowings - 7,78,964.39 6,29,682.95 14,08,647.34 Trade Payables - - 85.29 85.29 Other Financial Liabilities - 14,334.34 6,82,081.92 6,96,416.26

- 7,93,298.73 13,11,850.17 21,05,148.90

Current Financial Liabilities Borrowings 24,019.48 - - 24,019.48 Trade Payables 10,54,191.73 - - 10,54,191.73 Other Financial Liabilities 9,86,541.08 - - 9,86,541.08

20,64,752.30 - - 20,64,752.30Total Financial Liabilities 20,64,752.30 7,93,298.73 13,11,850.17 41,69,901.19

( in Lakhs)


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As at 31st March, 2019Non - Current Financial Liabilities Borrowings 10,12,113.47 3,96,533.87 14,08,647.34 Trade Payables - 85.29 85.29 Other Financial Liabilities 13,473.14 6,09,909.47 6,23,382.61

- 10,25,586.61 10,06,528.63 20,32,115.24Current Financial Liabilities Borrowings 35,563.42 - - 35,563.42 Trade Payables 7,05,470.22 - - 7,05,470.22 Other Financial Liabilities 10,71,633.29 - - 10,71,633.29

18,12,666.93 - - 18,12,666.93

Total Financial Liabilities 18,12,666.93 10,25,586.61 10,06,528.63 38,44,782.18

The deposit for electrification and service connections are transferred to Consumers’ Contribution onfinalization of their bills.

The balances under the head Security Deposits from the consumer are subject to reconciliation with thebalances as per subsidiary records. As per the practice followed by the Group, interest on Security Depositsis provided only for balances of Security Deposit of regular consumers.

The Group has access to committed credit facilities as described below, of which 233.480.51 lakhs wereunused at the end of the reporting period (P.Y. 221,936.58 lakhs). The Group expects to meet its otherobligations from operating cash flows and proceeds of maturing financial assets.

Secured Cash Credit Facility, reviewed annually andpayable at call



Amount Used 24,019.49 35,563.42Amount Unused 2,33,480.51 2,21,936.58

( in Lakhs)

D Fair Value Measurement

Fair value of Group’s Financial Assets on a recurring basis:Some of Group’s Financial Assets are measured at fair value at end of each reporting period.The following table gives information about how the fair values of these financial assets are determined.


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Finacial Assets/Financial Liabilities

Valuation technique(s) and Keyinput(s)Fair Value

HierarchyAs at 31st

March, 2019As at 31st

March, 2020

Investment in Equity Instruments 29,672.91 32,362.98 Level 1 Quoted bid prices from Stock ex(Quoted) change - NSE/BSE

Investment in Government 13,041.89 12,520.85 Level 1 Quoted bid prices from ClearingSecurities Corporation of India Ltd.

Investment in Equity Instruments 6,944.42 8,711.83 Level 3 Valuation techniques for which the(Unquoted) lower level input that is significant

to the fair value measurement isunobservable.

( in Lakhs)(a) Financial Assets at Fair Value through Other Comprehensive Income (FVTOCI)

Fair Value as at

(b) Financial Assets and Liabilities at Amortised Cost

The carrying amounts of Cash and Cash Equivalent, Other Bank Balances, Trade Receivables, Loansand Other Financial Assets, Current Borrowings, Trade Payables, Other Financial Liabilities areconsidered to be the same as their fair values, due to their short term nature.

46 Disclosure under Indian Accounting Standard 36- Impairment of Assets

In accordance with the Indian Accounting Standard (Ind AS-36) on “Impairment of Assets” the Groupduring the year carried out an exercise of identifying the assets that may have been impaired inrespect of cash generating unit in accordance with the said Indian Accounting Standard.

Based on the exercise, no Impairment Loss is required as on 31st March, 2020 (P.Y. Nil).

47 The subsidy claims on Government of Gujarat are made by Gujarat Urja Vikas Nigam Limited (GUVNL),the Holding Company on behalf of our Group including all other Distribution Subsidiaries. The subsidyreceivable balances are recorded, reflected and presented as such in GUVNL’s Standalone FinancialStatements. Subsidies being Government Grants are recognised as revenue in the Statement ofProfit or Loss in accordance with the accounting policy on Government Grants as stated in Note to theFinancial Statements.

The Holding Company has reviewed the status of subsidies receivable as of 31st March, 2020 of 207,842.39 Lakhs (P.Y. 324,588.53 Lakhs) in accordance with its policy on Financial Instruments

and does not expect any credit loss.


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48 Disclosures pursuant to Ind AS 37 “Provisions, Contingent Liabilities and Contingent Assets” bySubsidiary GSECL

Nature of Provisions

Provision for CSR as per Ministry of Environment & Forest: As per the condition laid down by Ministryof Environment & Forest vide letter no. J-13011/39/2008-IA.II(T) dated 10.02.2010, the SubsidiaryCompany GSECL needs to incur a sum of 170.00 Lakhs as CSR recurring expenditure till theoperation of the Plant located at Padva Village, Bhavnagar District, Gujarat.

Provision for CSR asper Ministry of

Environment & ForestParticulars

Balance as at 01-04-2018 263.00Additional provision during the year 170.00Provision used/reversed during the year -Additional provision for unwinding of interest and change in discount rate -Balance as at 31-3-2020 433.00

( in Lakhs)

Particular Year ended31st March, 2020

Year ended31st March, 2019

1. Contingent Liabilities not provided in respect of:Purchase 130.12 130.12Leasing Finance availed by erstwhile GEB 1,577.00 1,731.53Power Purchase 91,480.00 64,391.00Stamp Duty on Mortgage deed for Loans availed byerstwhile GEB from LIC - 1,198.32Employees 65,596.50 97,150.50Disputed matters of Income Tax, Service Tax, VAT, PropertyTax, Excise Duty, etc. (including against erstwhile GEB) 1,34,164.71 1,08,262.43Claims against Companies not acknowledged as Debts(Legal Matters) & Others 94,810.01 86,838.06

( in Lakhs)

49 Contingent Liabilities, Contingent Assets and Capital Commitments (to the extent notprovided for)

A Claims against the Group/ disputed Demands not acknowledged as Debt:


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Demand raised by Irrigation Department, Water ReservationCharges & Interest 1,92,057.43 1,85,038.99

2. Other Money for which the Companies are ContingentlyLiable:Letter of Credit 1,64,285.97 1,40,495.97Guarantee issued by Banks & others on behalf of the Group 42,119.40 37,754.41

Associate1. Claims against company not acknowledged as Debt:

Contractual claims against Vendors 1,517.27 3,582.31Water Reservation Charges- Demand due to Irregulardrawal of Water contested 236.48 236.17Employees - 0.27Property Tax- Demand by Local Authority under discussion 48.45 44.02Claims pending against the Company in case of Land 113.26 129.71Disputed matters of Income Tax, Service Tax, Excise Duty 941.67 1,045.80

Joint Venture1. Claims against company not acknowledged as Debt:

Claims against Company by M/s. AMPL regarding Development of Coal Block 15,991.60 15,991.60

Total 8,05,069.86 7,44,021.21

The Group’s pending litigations comprise of claims against the Group and proceedings pending withTax/ Statutory/ Government Authorities. The Group has reviewed all its pending litigations andproceedings and has made adequate provisions, wherever required and disclosed contingent liabilities,wherever applicable, in its Financial Statements. The Group does not expect the outcome of theseproceedings to have material impact on its financial position. Future cash outflows in respect of theabove are determinable only of receipt of judgements. decisions pending with various forums/authorities.

B. A Contingent Asset is a possible asset that arises from past events and whose existence will beconfirmed only by the occurrence or non-occurrence of one or more uncertain future events not whollywithin the control of the entity. During the normal course of business, several unresolved claims arecurrently outstanding. The inflow of economic benefits, in respect of such claims cannot be measureddue to uncertainties that surround the related events and circumstances, except the Contingent Assetdisclosed by Subsidiary Company GSECL:


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Coal Claims related to its Quality 21,017.59 26,796.40Court related Matter- Not Honouring Contractual Obligationby Vipulkumar 595.89 595.89

( in Lakhs) Contingent Assets



A. Capital CommitmentEstimated amount of Contract remaining to the executedon capital accounts (Net of Advances) 1,96,656.35 2,40,121.70Total 1,96,656.35 2,40,121.70

B. Other CommitmentsOther commitments 5,630.80 4,525.15Total 5,630.80 4,525.15

AssociateA. Capital Commitments 11,595.34 1,080.06B. Other Commitments 171.85 -

Joint VentureA. Capital Commitments - -B. Other Commitments - -

( in Lakhs)C Capital Commitments



a) Gross amount required to be spent by the Group duringthe Year 1,938.64 2,364.16

b) Amount spent during the Year 1,162.21 1,101.42

( in Lakhs)49 CSR Expenditure


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Particulars For Year Ended on 31st March, 2020

(i) Construction/ Acquisition of any Asset 159.31 - 159.31(ii) On purpose other than (i) above 1,002.90 - 1,002.90 Total 1,162.21 - 1,162.21

( in Lakhs)c)

TotalPaid Yet to be Paid

ParticularsFor Year Ended on 31st March, 2019

(i) Construction/ Acquisition of any Asset 122.43 - 122.43(ii) On purpose other than (i) above 954.31 24.68 978.99 Total 1,076.74 24.68 1,101.42

( in Lakhs)

TotalPaid Yet to be Paid

d) For CSR amount which has remained unspent during the year, suitable reasons would be provided inDirector's Report.

50 Research & Development Expenditure as per GUVNL

The details of Revenue and Capital Expenditure incurred on Research and Development is as under:



Capital Expenditure:Computer and related Equipment 78.28 -Less: Depreciation for the year 1.33 - Total Capital Expenditure (Net of Depreciation) : 76.95 -Revenue Expenditure:Employee Benefits 100.60 137.39Material Consumed 5.16 3.14Administrative and Misc. Exp 50.66 37.64Depreciation 3.62 2.29 Total Revenue Expenditure 160.05 180.45 Total Research and Development Expenditure : 236.99 180.45

( in Lakhs)

Research and Development Grant related income is disclosed under Note No. 34.


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51. Foreign Currency Loan

a. Loan from ADB-2778-IND: The Availment of Foreign Currency Loan from Asian Development Bank(ADB) by the subsidiary company GETCO is Complete. The Total Loan availed from ADB for Loanno. 2778-IND amounts to USD 656.16 lakhs. Interest and commitment charges for the year 2019-20amounting to USD 15.14 lakhs (P.Y. USD 16.75 lakhs ) is shown under Finance Cost.

Foreign currency fluctuation Gain / (Loss) related to ADB Loan no. 2778-IND for the FY 2019-20 isLoss of 3,409.47 lakhs (P.Y. 2,531.18 lakhs). Foreign currency fluctuation Loss is accountedunder the Finance Cost as the projects are completed in F.Y. 2016-17.

b. Loan from KfW: During the year, GETCO has taken Foreign Currency Loan from KfW amounting toEuro 281.66 lakhs (P.Y. Euro 108.80 lakhs). The Total Loan availed from kfW is Euro 427.75 lakhs.The Availment of Loan is in progress. Interest and commitment charges for the year 2019-20 amountingto Euro 5.05 lakhs (P.Y. Euro 3.06 lakhs) is shown under Capital Work In Progress.

Foreign currency fluctuation loss related to KfW Loan for the FY 2019-20 is 1987.73 lakhs (P.Y.Gain of 395.03 lakhs), Out of which Foreign Exchange Loss of 1974.28 lakhs (P.Y. Gain of

395.03 lakhs) is capitalized to the projects which are under implementation stage and the balanceof Foreign Exchange Loss of 13.40 lakhs (P.Y. NIL) is related to projects which are commerciallyput to use in FY 2019-20 and the same is expensed out and shown under the head Finance Cost.

52. Capital Work in Progress by GETCO

(i) The subsidiary company GETCO has provided General Establishment Charges (GEC) and HeadOffice Supervision Charges (HOSC) on amount of 5,370.39 lakhs from current year on theexpenditure recorded under the head unbilled capital work in progress.

(ii) The rates of HOSC have been fixed as @ 5% for Construction division & @ 17% for Transmissiondivision, these are loaded on the cost of Material and labour incurred during the year.

(iii) The company has proportionately loaded NIL borrowing costs (Previous Year 4.29%). During theyear, the company has capitalized borrowing cost of 2,455.44 lakhs for meeting capital expenditurerequirement related to KfW Projects.

(iv) The Management has reviewed the under constructed projects under CWIP and has carried out theinternal analysis as per requirements of IND AS-36 (Impairment of Assets) of the under constructedprojects and has impaired projects of 382.03 lakhs which are abandoned and dropped due toreasons like non availability of Land, projects practically not feasible etc. The management has also


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analysed that it will recover entire cost of under constructed projects in CWIP and the recoverablevalue is more than the carrying value of all projects in CWIP even though some of the under constructionprojects have held up due to various issues like land acquisition problems, Right of Way problems,Permission / approvals from Forest authorities, Court cases, Land & Crop compensation, Farmers /villagers protest, Police Protection etc.,. Further, the Company expects to generate revenue fromthese projects once such projects are commercially ready to use in the near future and as it operatesunder regulated tariff regime.

53. Captive Mining by GSECL

Ministry of Coal, Government of India has allotted the Machhakata & Mahanadi coal block in Odishajointly to GSECL and MSPGCL for the captive coal mining under Government Dispensation Route.The coal produced from the block was to be shared between GSECL and MSPGCL in the ratio of40% and 60% respectively. The Joint Venture Company in the name of “Mahaguj Collieries Limited”(MGCL) was incorporated on 01-11-2006 by MSPGCL and GSECL for development of Coal Blockand M/s Adani Enterprises Ltd. (AEL) was appointed as MDO.

The Hon’ble Supreme Court vide its order dated 24-09-2014 cancelled the allocated coal block.Subsequent to cancellation of the Coal Block, the MDO M/s Adani Enterprises Ltd. raised a claim of

39,979 Lakhs against MGCL for the expenditure incurred by them for the project. M/s AEL invokedthe Arbitration Proceeding due to denial of claim by MGCL along with application u/s 17 for interimrelief of 4,470 Lakhs to the Arbitral Tribunal on 10.05.2017. The Arbitral Tribunal passed the FirstInterim Award on 01.02.2018 and directed MGCL to pay to M/s. AEL a sum of 3,279.60 Lakhswhich was challenged by MGCL in the Bombay High Court. The Bombay High Court admitted thecase and in its common order dtd 25.02.2019 set aside the order of the Arbitration Tribunal.

54. Regarding outstanding dues of M/s. Essar Steel India LimitedIn case of subsidiary DGVCL,

M/s. Essar Steel India Limited (ESIL) violated terms and conditions of the Minutes of Meeting (MOM)dated 01.02.2010 among Principal Secretary, Energy and Petrochemical Department (E&PDepartment), Government of Gujarat (GOG), GUVNL, GETCO, Chief Electrical Inspector, EssarGroup & Bhander Power Ltd., the Group, has therefore, issued supplementary bill of 231,102.44lakhs to ESIL as per conditions of MoM for 2020.99 MUs.This was subsequently revised to 19,258.54lakhs for 168.42 MUs as per directives of E&P Department till case of total claim of originalsupplementary bill is finally settled for breach of said MoM, which was paid by M/s. ESIL. Accordingly,revenue to the extent of 19,258.54 lakhs was recognized in the books in F.Y 2011-12 and recognition


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of balance Revenue of 211,843.90 lakhs was deferred till the final settlement is made by the E&Pdepartment, GOG, or appropriate judicial forum.

Further to above, DGVCL has filed its claim (of a recurring nature) for 588,228.20 Lakhs underInsolvency and Bankruptcy Code, 2016 (IBC) initiated against M/s Essar Steel Limited. This includesthe amount of Cross subsidy surcharge relating to respective financial years till F.Y 2016-17 whichwas accounted in books as receivable which has been contested by M/s. ESIL as not payable byfiling petition before GERC. Besides this claim which has been accounted in books as receivable, theCompany also has other legal claims, which was not recognized and reflected in receivables as perthe Company’s accounting policy in compliance with Ind AS.

During F.Y 2017-18, notwithstanding the legal tenability of the DGVCL’s claims and litigation andwithout prejudice to the Company’s rights to recover the aforementioned claims, based on the factsand circumstances as of the date of issue of financial statements, the Company has impaired theentire receivable of 44,040.40 lakhs from M/s. ESIL as irrecoverable in compliance with Ind AS 109on “Financial Instruments”.

The NCLT (National Company Law Tribunal) vide order dated 08.03.2019 has approved ResolutionPlan which was challenged before NCLAT by corporate creditors / operational creditors includingDGVCL. The NCLAT vide its judgement dated 04.07.2019 has decided to distribute realized amountin an equitable manner amongst all majority creditors providing almost equal share of 60% to financialand operational creditors with admitted claim of 1.00 crore or more. The judgement of NCLAT hasbeen challenged by aggrieved parties before the Hon’ble Supreme Court. On 22.07.2019, Hon’bleSupreme Court had ordered “status quo” as it agreed to hear the appeal filed by aggrieved partiesagainst the NCLAT order. DGVCL has filed an “Impleadment Application” on 29th July, 2019 vide no.114274/19 and accordingly DGVCL joined as respondent in Civil Appeal No-24417 of 2019 and alsoit has filed a Writ Petition vide no. 1246 of 2019 challenging relevant provisions of IBC (Amendment)Act, 2019.

This Civil Appeal was heard by Hon’ble Supreme Court and it delivered judgement vide dated 15th

November, 2019 allowing the appeal of Committee of Creditors of ESIL and set aside the Order ofNCLT. Being aggrieved from the judgement of the Hon’ble Supreme Court in Civil Appeal, DGVCLhas once again filed Review Petition before Hon’ble Supreme Court bearing review petition Diary No.240 of 2020 in Civil Appeal No. 8766-8767 of 2019. The said review petition has been dismissed bythe Hon’ble Supreme Court by its Order dated 25th August, 2020. However, Contingent liabilities aredisclosed under note no. 42 which includes the amount of 19,258.54 lakhs of the SLP filed byM/s. ESIL.


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In case of subsidiary GETCO,

Trade receivables includes amount Receivable for wheeling charges in financial year 2016-17, anamounting to 36,577.09 lakhs for period 2006 to 2011, due from M/s Essar Steel Limited. Thesubsidiary company GETCO went into the process of Corporate Insolvency Resolution Process andaccordingly GETCO has submitted claim of 82,718.13 lakhs (Invoice amount of 36,577.09 lakhsand Delayed Payment Surcharge of 46,141.04 lakhs as on 2nd August, 2017) to the IRP appointedfor M/s Essar Steel. However, IRP admitted the claim of GETCO at a notional value of 1 to ensureparticipation of GETCO in Corporate Resolution Process and the remaining amount was not admittedbecause of pending dispute with respect to this claim before various authorities.

Accordingly, while preparation of Financial Statements of FY 2017-18, GETCO relooked at theoutstanding dues of M/s Essar Steel considering the initiation of CIRP process against M/s EssarSteel and reviewed the provisions of IND AS 109. As per Ind AS109, GETCO is required to assessthe recoverability of all its receivables considering not only the legal position in terms of validity of theclaim, but more importantly the probability of recoverability of the amount from trade receivablesconsidering its financial situation/state of affairs, willingness of the party as well as the capability ofthe party to pay its outstanding dues for making necessary provisions. Accordingly, in FY 2017-18,GETCO has written off the dues of M/s Essar Steel for 36,577.09 lakhs in the Books of Accounts.

GETCO has filed an Interlocutory Application before National Company Law Tribunal (NCLT),Ahmedabad Bench not to approve the Resolution Plan submitted by the Resolution Professional asthe plan does not provide any pay-out to GETCO for outstanding transmission charges. NCLT vide itsorder dtd 4th March, 2019, stated that Resolution Professional have to include GETCO’s entire claimin Information Memorandum instead of notional amount of 1. The Adjudicating Authority (NCLT)has also suggested that 15% of total Resolution Value offered by Arcelor may be segregated formeeting with claims of Operational Creditor.

GETCO has other legal claims including delayed payment charges of 49,813.99 lakhs up to 31st

March 2018, which have not been recognized and reflected in receivables as per the Company’saccounting policy in compliance with Ind AS. The Corporate Insolvency Resolution Process (CIRP)under Insolvency and Bankruptcy Code, 2016 (IBC) had been initiated against M/s Essar Steel Limited.The CIRP had been approved by the Honourable National Company Law Tribunal, Ahmedabad andit is ongoing. GETCO has filed its claim with the designated Resolution Professional. The Managementhas and is assessing the progress and status of proceedings with various forums including NCLT,NCLAT and other courts. Further, the Management also considered the provisions of IBC as well asthe broader experience of the insolvency proceedings. Notwithstanding the legal tenability of the


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Company’s claims and litigation and without prejudice to the Company’s rights to recover theaforementioned claims, the Management noted based on the facts and circumstances as of the dateof issue of previous year financial statements, the receivable to be irrecoverable in its likelihood.Hence, the Company had written off the entire receivable of 36,577.08 lakhs in the previous yearfinancial statements.

The same was shown under the head Exceptional Items in Statement of Profit & Loss in FY 2017-18.

The order of the NCLT was challenged by GETCO and other Operational creditors in NCLAT(Appellate). NCLAT vide its order dtd 4th July, 2019 upheld the order of NCLT in providing GETCO’sentire claim in the Total claim of the Operational creditors. Accordingly, the total list of Operationalcreditors was revised to 19,719.21 crores in which GETCO’s claims were also included. The orderof the NCLAT was challenged by the Financial Creditors in the Supreme Court. Further Ministry ofLaw and Justice made an amendment to the IBC 2016 on 6th August, 2019 to provide for priority ofthe payment out of the proceeds from the resolution process in favour of the secured and financialcreditors to the complete exclusion of the Operation creditors. Accordingly, GETCO on 14th August,2019 filed a writ petition in Supreme Court against Union of India through the Secretary Ministry ofLaw and Justice for quashing the provisions of sections 2, 5, 6, 8 and 9 of the IBC (Amendment) Act,2019 (Act 26 of 2019), inter alia, providing for the priority of the claim contained in Section 53 of theIBC to be applicable for approval of the resolution plan.

Supreme Court vide its order dtd 15th November, 2019 stated that the resolution professional wascorrect in only admitting the claim at a notional value of 1 due to the pendency of disputes withregard to these claims. So vide the aforesaid order of Supreme Court, the claim of GETCO stood atNotional Value of 1. Further, GETCO has received 1 from Arcellor Mittal on 16.12.2019. FurtherGETCO has also filed review petition on 27.1.2020 (Diary no. 3373/2020) against the order of theSupreme Court dated 15.11.2019 in Civil Appeal Diary No. 24477 of 2019 which was dismissed bythe Hon’ble Supreme Court.

55. Fixed Assets and Depreciation

Consequent upon unbundling of business of GEB, various Lands & Buildings of Group companiesare shared/used by companies other than the owners. User charges thereof are not recovered orprovided in absence of any mechanism or its determination and thus same cannot be quantified.

The Group has received the Gross Fixed Assets as well as accumulated depreciation from erstwhileGEB vide the Notification by Government. Accordingly the Opening Net Block of all Fixed Assets hasbeen restated as on 31.03.2005. Further, the depreciation has been accounted for subsequent yearsas per the Depreciation Policy.


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As per Para 15 of Ind AS 105 “Non-Current Assets Held for Sale and Discontinued Operations” anEntity shall measure a non-current asset (or Disposal Group) classified as held for sale at lower of itscarrying amount and fair value less costs to sell. However, the Group has not determined the fairvalue less costs to sell for assets retired from active use as the management is of the opinion that thefair value of the same is higher the Net Book Value due to very old assets and upward trend in Scraprates. As a result of this, Group has not recognised any expected loss, if any, in the Statement ofProfit and Loss. Discarded assets are treated as ‘assets classified as held for sale’ on and from thedate of approval by competent authority.

Land held under lease is amortised as per the rate notified by the GERC.

56. Long Term Contracts

The Group did not have any Long term contracts including Derivative Contracts for which there werematerial foreseeable losses. Further, some balances of Trade and other receivables, Trade andother payables and Loans are subject to confirmation/reconciliation. Adjustments if any, will beaccounted for on confirmation/ reconciliation of the same, which will not have any material impact.

57. Lease

(a) Ind AS 116 “Leases” Introduces a single lessee accounting model which requires a lessee to recognise“Right of Use” asset and it replaces Ind AS 17 “Leases” with effect from 1st April, 2019. A lessee,under Ind AS 116, recognises “Right of Use” asset representing it’s right to use the underlying assetand a “Lease Liability” representing it’s obligation to make lease payments.

(b) Pursuant to Ind AS 116 “Leases” becoming mandatory, effective from 1st April, 2019, the Groupadopted Ind AS 116 “Leases” and applied the standard to all lease arrangements / contracts whichexisted on 1st April 2019, using the “Modified Retrospective Approach”. Comparatives as at and forthe year ended 31st March, 2019 have not been retrospectively adjusted and therefore, are continuedto be reported in accordance with the accounting policy with respect to “Leases” included in thefinancial statements for the financial year ended on 31st March, 2019.

(c) The Subsidiary Company’s GSECL and UGVCL has entered into dry lease arrangements for “E-Vehicles” during the year. The Company has considered such “E-Vehicles” as low value items, andhence, has opted for the exemption not to recognize right-of-use assets and lease liabilities for suchlease arrangements having low value underlying asset.

(d) In respect of Lease Arrangements, which are cancellable without any significant penalty either bylessor or lessee by giving appropriate notice as per respective agreements, do not create enforceable


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rights and obligations between the parties and thus, do not constitute a contract. Accordingly, theGroup does not apply Ind AS 116 on such Lease Arrangements.

(e) There is no effect of this adoption on the profit before tax, profit for the year, earnings per share andcash flows.

(f) The following is the summary of practical expedients elected on initial application:

1. Applied the exemption, not to recognize right-of-use assets and liabilities for leases with lessthan 12 months of lease term on the date of initial application.

2. Applied the exemption, not to recognize right-of-use assets and liabilities for leases for whichthe underlying asset is of low value.

3. Excluded the initial direct costs from the measurement of the right-of-use asset at the date ofinitial application.

4. Applied the practical expedient to exempt the assessment of which transactions are leases.Accordingly, Ind AS 116 is applied only to contracts that were previously identified as leasesunder Ind AS 17.

A. The details of Right of Use Assets is included in Property, Plant and Equipment (Note 2) held asLessee:

Particular/ Assets Amount

Opening Balance as on 01-04-2019 -Additions during the year 1,971.95Depreciation recognized during the year 90.03Net Carrying Value as on 31-03-2020 1,881.91

Above additions in Right of Use Assets amounting to 1,971.95 includes operating leases for leaseagreements entered before 01.04.2019 on Net Carrying Value.

( in Lakhs)


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Particular Amount

Depreciation recognised in Statement of Profit and Loss 90.03Expenses relating to short term Lease (Lease more than 30 days) 28.08Expenses relating to Lease of low value assets, excluding short term 18.47Additions/ Regrouped to ROU Assets during the year 1,857.01Total cash outflow for Leases 73.41

Net Carrying Amount of ROU at end of Year 1,827.84

( in Lakhs)


B. Amount recognised in Statement of Profit & Loss for Year ended on 31st March, 2020

58 Related Party Disclosures

A. Name of Related Party and description of relationship:

Name of Related Party Nature of Relationship

Gujarat Industries Power Company Limited Associate Company

Mahaguj Collieries Limited Joint Venture Company of GSECL

Gujarat State Financial Services Limited Government Related Entity

Gujarat Water Supply & Sewage Board Government Related Entity

Shri Pankaj Joshi, IAS (02.11.2019 to 16.12.2019) Chairman

Smt. Sunaina Tomar, IAS (10.01.2020 to 31.03.2020) Chairman

Shri Pankaj Joshi, IAS (01.04.2019 to 01.11.2019) Key Management Personnel (KMP)Smt. Shahmeena Husain, IAS (30.08.2019 to 31.03.2020) Key Management Personnel (KMP)Ms. Mona Khandhar, IAS (01.04.2019 to 31.08.2019) Woman Director

Shri N N Misra (01.04.2019 to 31.03.2020) Independent Director

Shri R C Dhup (01.04.2019 to 31.03.2020) Independent Director

Shri Milind Torawane, IAS (01.04.2019 to 01.10.2019) Director

Shri Roopwant Singh, IAS (01.10.2019 to 31.03.2020) Director

Shri S B Khyalia (01.04.2019 to 01.11.2019) Key Management Personnel (KMP)Shri K M Bhuva (01.04.2019 to 31.03.2020) Key Management Personnel (KMP)

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Shri Shubhadeep Sen (01.04.2019 to 31.03.2020) Key Management Personnel (KMP)Shri Parthiv Bhatt (01.04.2019 to 31.03.2020) Key Management Personnel (KMP)

Gujarat State Electricity Corporation Limited

Shri Sujit Gulati (Upto 16.07.2018) Chairman

Shri Raj Gopal (07.08.2018 to 01.02.2019) Chairman

Shri Pankaj Joshi Nominee Director (upto 01.11.2019)

Smt. Sunaina Tomar (w.e.f. January 10, 2020) Chairman

Shri N.K. Jha Independent Director

Shri P.H. Rana Independent Director

Shri H.P. Desai Independent Director

Shri V.T. Rajpara Independent Director

Shri I.P. Gautam Nominee Director

Smt. Mona Khandhar Nominee Director

Shri Milind Torawane Nominee Director

Shri K. M. Bhuva Nominee Director

Shri. Sanjeev Kumar Nominee Director

Smt. Shahmeena Husain Nominee Director (w.e.f. 15.11.2019) & KeyManagement Personnnel of HoldingCompany

Shri R. M. Bhadang Key Management Personnel (KMP)Shri V. P. Jani Key Management Personnel (KMP)Shri P. R. Dahake (Upto 31.07.2019) Key Management Personnel (KMP)

Gujarat Energy Transmission Corporation Limited

Shri B. B. Chauhan, Managing Director (till 31.7.2020) Key Management Personnel (KMP)Shri Nimesh A. Patel, General Manager (F&A) Key Management Personnel (KMP)Shri Nishant Shrivastava, Company Secretary Key Management Personnel (KMP)

Paschim Gujarat Vij Company Limited

Shri Bhavin Pandya (Upto 04.09.2019) Key Management Personnel (KMP)


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Smt. Shweta Toetia (From 04.09.2019) Key Management Personnel (KMP)Shri Kintu Kumar Malkan Key Management Personnel (KMP)Shri Hardik Chauhan (From 02.12.2019 ) Key Management Personnel (KMP)

Uttar Gujarat Vij Company Limited

Shri Varun Nath Maira, IAS (Retd.) Key Management Personnel (KMP)Shri B. A. Shah, IAS Key Management Personnel (KMP)Shri Swaroop P, IAS Key Management Personnel (KMP)Shri Mahesh Singh, IFS Key Management Personnel (KMP)Shri R. B. Kothari CFO

Shrl N. M. Joshi CS

Madhya Gujarat Vij Company Limited

Shri T. Y Bhatt, IAS Key Management Personnel (KMP)Shri M. R. Kothari, IAS Key Management Personnel (KMP)Shri Rajesh Manjhu, IAS Key Management Personnel (KMP)Shri J. H. Modi CFO

Shri Sourav Nandy CFO

Shri K. R. Shah CFO

Shri V. M. Chavan CS

Dakshin Gujarat Vij Company Limited

Shahmeena Husain, IAS Chairman

Shri Yogesh K. Choudhary, IAS (w.e.f 17.12.2019) Key Management Personnel (KMP)Ms. Kshipra S. Agre, IAS (25.09.2019 to 17.12.2019) Key Management Personnel (KMP)Shri M. R. Kothari, IAS (07.09.2019 to 25.09.2019) Key Management Personnel (KMP)Ms. Ardra Agarwal, IAS (Upto 07.09.2019) Key Management Personnel (KMP)Shri N. A. Dave Key Management Personnel (KMP)Shri V. H. Vora Key Management Personnel (KMP)


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B. The following transactions were carried out with the related parties in ordinary course ofbusiness during the year:

TotalKMPAssociateCompany

GovernmentRelatedEntity

Nature of Transaction

1 Transactions during the year

Purchase of Electricity - 1,00,976.83 - 1,00,976.83

- (98,180.66) - (98,180.66)

Gujarat Industrial Power Company Limited - 1,00,976.83 1,00,976.83

- (98,180.66) (98,180.66)

Rebate (Cash Discount) on Prompt Payment 972.18 - 972.18

of Power Purchase - (1,029.05) - (1,029.05)

Gujarat Industrial Power Company Limited - 972.18 972.18

- (1,029.05) (1,029.05)

Loan Received 20,000.00 - - 20,000.00

(10,000.00) - - (10,000.00)

Gujarat State Financial Services Limited 20,000.00 - - 20,000.00

(10,000.00) - - (10,000.00)

Loan Repayment 41,805.56 - - 41,805.56

(54,803.70) - - (54,803.70)


(54,803.70) - - (54,803.70)

Water Charges 6,314.61 - - 6,314.61

(7,442.69) - - (7,442.69)

Gujarat Water Supply & Sewage Board 6,314.61 - - 6,314.61

(7,442.69) - - (7,442.69)

Interest 6,538.17 - - 6,538.17

(10,059.41) - - (10,059.41)


(10,059.41) - - (10,059.41)

( in Lakhs)


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Remuneration (Salary and Perquisites) paid to - - 572.66 572.66KMP/ Directors: - - (767.30) (767.30)Shri Pankaj Joshi, IAS - - 14.07 14.07

- - (35.48) (35.48)Smt. Shahmeena Husain, IAS - - 16.47 16.47

- - - -Shri S B Khyalia - - 22.76 22.76

- - (41.39) (41.39)Shri K M Bhuva - - 9.64 9.64

- - (36.63) (36.63)Shri M B Parikh - - - -

- - (8.04) (8.04)Shri Parthiv Bhatt - - 26.96 26.96

- - (28.83) (28.83)Shri Shubhadeep Sen - - 28.55 28.55

- - (28.57) (28.57)Shri P. R. Dahake - - 13.56 13.56

- - (100.99) (100.99)Shri V. P. Jani - - 29.34 29.34

- - (31.99) (31.99)Shri R. M. Bhadang - - 26.13 26.13

- - (25.11) (25.11)Shri B.B. Chauhan - - 40.09 40.09

- - (41.38) (41.38)Shri Nimesh A. Patel - - 30.56 30.56

- - (28.61) (28.61)Shri Nishant Shrivastava - - 18.79 18.79

- - (20.23) (20.23)Smt. Shweta Teotia - - 5.76 5.76

- - - -Shri Bhavin Pandya - - 11.45 11.45

- - (21.09) (21.09)


342


Shri Kintu Kumar Malkan - - 28.33 28.33 - - (30.23) (30.23)

Shri Sudhir Bhatt - - - -- - (4.94) (4.94)

Shri Hardik Chauhan - - 2.82 2.82- - - -

Shri Varun Nath Maira, IAS (Retd.) - - 7.27 7.27- - (20.81) (20.81)

Shri B. A. Shah, lAS - - - -- - (2.78) (2.78)

Shri Swaroop P, IAS - - - - - - (15.20) (15.20)

Shri Mahesh Singh, IFS - - 30.12 30.12 - - (2.07) (2.07)

Shri R. B. Kothari - - 31.20 31.20- - (33.68) (33.68)

Shri N. M. Joshi - - 28.29 28.29- - (30.57) (30.57)

Shri T. Y. Bhatt, IAS - - 6.49 6.49- - - -

Shri M. R. Kothari, IAS - - 4.03 4.03- - - -

Shri Rajesh Manjhu, IAS - - 9.96 9.96- - (21.69) (21.69)

Shri J. H. Modi - - 5.93 5.93- - - -

Shri K. R. Shah - - 47.21 47.21 - - (38.79) (38.79)

Shri Sourav Nandy - - 1.11 1.11- - - -

Shri V. M Chavan - - 11.68 11.68- - (1.35) (1.35)


343


Shri K. M. Antani - - - - - - (45.96) (45.96)

Shri Yogesh Choudhary - - 2.92 2.92- - - -

Ms. Ardra Agarwal,IAS - - 5.83 5.83 - - (12.72) (12.72)

Shri N. A. Dave - - 29.50 29.50- - (31.59) (31.59)

Shri V. H. Vora - - 25.86 25.86- - (26.57) (26.57)

The Group has not paid any remuneration to Chairman Shri Pankaj Joshi, IAS and Chairperson Smt. SunainaTomar, IAS as they occupied the position of Addl. Chief Secretary, Energy & Petrochemicals Dept., Govt. ofGujarat and were therefore drawing salary from Govt. of Gujarat.

TotalKMPAssociateCompany

GovernmentRelatedEntity

Nature of Transaction

Incidental Charges paid to KMP / Directors: - - 1.52 1.52

- - (2.86) (2.86)

Shri Sujit Gulati, IAS - - - -

- - (0.06) (0.06)

Shri Raj Gopal, IAS - - - -

- - (0.20) (0.20)

Shri Pankaj Joshi, IAS - - 0.20 0.20

- - (0.54) (0.54)

Smt. Sunaina Tomar, IAS - - 0.08 0.08

- - - -

Smt. Shahmeena Husain, IAS - - 0.20 0.20

- - - -

Shri Milind Torawane, IAS - - 0.08 0.08

- - (0.14) (0.14)

( in Lakhs)


344


Shri Roopwant Singh, IAS - - 0.06 0.06

- - - -

Ms. Mona Khandhar, IAS - - 0.02 0.02

- - (0.18) (0.18)

Shri N N Misra - - 0.08 0.08

- - (0.08) (0.08)

Shri R C Dhup - - 0.08 0.08

- - (0.04) (0.04)

Shri S B Khyalia - - 0.18 0.18

- - (0.38) (0.38)

Shri K M Bhuva - - 0.28 0.28

- - (0.36) (0.36)

Shri I. P. Gautam IAS - - - -

- - (0.36) (0.36)

Shri Nirmal Jha - - 0.08 0.08

- - (0.04) (0.04)

Shri P. H. Rana - - 0.02 0.02

- - - -

Shri V.T. Rajpara - - 0.14 0.14

- - (0.08) (0.08)

Shri Sanjeev Kumar - - - -

- - (0.08) (0.08)

Shri P. R. Dahake - - 0.02 0.02

- - (0.32) (0.32)

Sitting Fees paid to Independent Directors: - - 2.65 2.65

- - (1.20) (1.20)

Shri N N Misra - - 0.30 0.30

- - (0.20) (0.20)


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Shri R C Dhup - - 0.30 0.30

- - (0.10) (0.10)

Shri Nirmal Jha - - 0.20 0.20

- - (0.10) (0.10)

Shri V. T. Rajpara - - 0.35 0.35

- - (0.20) (0.20)

Shri Anish Sugathan - - 0.70 0.70

- - (0.20) (0.20)

Shri Nirav Shah - - 0.25 0.25

- - (0.20) (0.20)

Shri Vasant Gandhi - - 0.55 0.55

- - (0.20) (0.20)

Balance as at :

Payables 86,090.77 15,325.08 - 1,01,415.85(1,05,874.55) (15,406.48) - (1,21,281.03)

Gujarat State Financial Services Limited 76,101.85 - 76,101.85

(97,907.41) - (97,907.41)

Gujarat Industrial Power Company Limited - 15,325.08 - 15,325.08

- (15,406.48) - (15,406.48)

Gujarat Water Supply and Sewage Board 9,988.92 - - 9,988.92

(7,967.14) - - (7,967.14)

Note: Previous Year figures are mentioned in brackets.


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59. GEB’s Contributory Provident Fund Trust (GEB’s CPF Trust) is an exempted PF Trust (U/s 17 of theEmployees Provident Fund & Miscellaneous Provisions Act, 1952) which is responsible for all ProvidentFund compliances and also manages the Provident Fund accumulations of all employees of the Group.The Trust which is a separate entity had invested a portion of its corpus amounting to 16510.00Lakhs in 3 IL&FS Group Companies (viz. M/s. IL&FS Transport Network Ltd., M/s. InfrastructureLeasing & Financial Services Ltd. and M/s. IL&FS Financial Services Ltd.) in accordance with theinvestment pattern / guidelines issued by Ministry of Labour & Employment, New Delhi. Due to suddenfinancial crisis, the IL&FS Group Companies stopped payment of interest to the Trust in 2018.Thereafter, the entire IL&FS Group was referred to National Company Law Tribunal (NCLT) underInsolvency & Bankruptcy Code (IBC), 2016.

As a result, full recovery of principal and interest from IL&FS became doubtful for GEB’s CPF Trust.Therefore, GUVNL being the parent establishment of the Trust has withheld a total amount of

18256.66 Lakhs (towards principal and interest) from monthly power purchase bills of 7 IL&FSGroup Companies (from November, 2018 onwards) with whom the Company is having Power PurchaseAgreements (PPA). Subsequently, GUVNL has transferred this entire retained amount of 18256.66Lakhs to GEB’s CPF Trust in March, 2020. As on date, NCLT resolution proceedings are in progressand its ultimate result is awaited.

Similarly, the Trust had also invested a portion (total 17397.60 Lakhs) of its corpus in M/s. PunjabState Industrial Development Corporation Ltd., M/s. Punjab Finance Corporation Ltd., M/s. RelianceCapital Ltd., M/s. Reliance Home Finance Ltd., and M/s. Dewan Housing Finance Ltd. in accordancewith the investment pattern / guidelines issued by Ministry of Labour & Employment, New Delhi. But,due to financial crisis in these organisations, they have stopped payment of interest / repayment ofprincipal to the Trust. Therefore, GUVNL has provided 10946.00 Lakhs towards dues on account ofinterest and principal considering the future uncertainty regarding full recovery of the same fromthese Companies. As on date, the resolution proceedings for these Companies are in progress beforedifferent Forums, as reflected in Note No.37 : Employee Benefit Expenses.

60 The Holding Company GUVNL, enters into Power Purchase Agreements (PPAs) with various powergenerators to procure power as per agreed contractual terms. Contractual issues arising between theHolding Company and the power generators are addressed on an ongoing basis including if thematters have to be enforced through Regulatory forums and Courts. Certain contractual issues hadarisen between the power generators and the Holding Company in the earlier years which haveprogressed through various stages of grievance redressal. and contract enforcement through ourjustice system and is still under dispute. The Holding Company has reviewed the progress of all such


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disputed / contested matters and has assessed the provision as of the year end based on bestjudgement basis as reflected in Note No.28.

61 Govt. of Gujarat implemented the “UJALA GUJARAT” Scheme which entailed promotion ofreplacement of conventional bulbs with energy efficient bulbs in order to save energy. This schemewas implemented jointly by GUVNL and its Distribution subsidiaries (DISCOMs) along with the executingagency M/s. Energy Efficient Services Limited (EESL). EESL has made claims under the scheme,which have been only partially paid and an amount of 1,771.11 Lakhs (previous year 1,771.11Lakhs) has been retained from the total claims, which would be released after complete reconciliationand submission of all related information by EESL. The amount retained is reflected in Note No.23:Other Financial Liability as “Deposits and Retention from Suppliers/Contractors”.

62 “Loan to Others” reflected in Note No.14: Other Financial Assets is the amount recoverable from M/s. Federation of Gujarat Industries (FGI), Baroda, for conducting Switch Global Expo-2016 event, forwhich the Parent Company has initiated legal recovery process. The Parent Company assesses fullrecovery of this amount and hence has considered this amount to be good and recoverable.

63 Secured and Unsecured Loans by GETCO

(i) As per Clause 3(2) of the Gujarat Electricity Industrial (Reorganization & Regulation) Act andComprehensive Transfer Scheme 2003 if the assets of the undertaking transferred are subject tosecurity document in favour of third party (Lender) for any financial obligation or arrangement byErstwhile GEB and the said loans are required to be apportioned to different transferees the Govt.may by order do so and on such apportionment the Security will be applicable to that apportionedliabilities only by operation of Law.

(ii) The loans which were raised by Erstwhile GEB from Bonds, Banks, PFC, REC, LIC, FinancialInstitutions and other Lenders against the Security of the assets relating to Generation, Transmissionand Distribution activities and were used for common purposes are continued in the Books of GEB /(now GUVNL) on behalf of all transferee companies and the same have been apportioned under FRPNotification dated 3rd October, 2006 based on their purpose and usage amongst all transfereecompanies and the same loans have been accounted by the Company as “Loans allocated fromGUVNL – Lender Wise” in separate accounts. The repayments and interest thereon are reimbursedby the Company to GUVNL. The Outstanding balance of such loan is only from Asian DevelopmentBank (ADB) having outstanding loan balance of 2,819.90 lakhs (P.Y. 3,389.95 lakhs) @ 10.00%p.a. in the accounts of GETCO.

(iii) The Company during the F.Y. 2020-21, has made prepayment of the loans of Rural Electrification


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Corporation Limited amounting to 110,074.00 lakhs. The same has been treated as Non AdjustingEvent occurring after the reporting period and is disclosed appropriately.

64 Adhering to the Significant Accounting Policy adopted by the Group, Grant / Subsidy and Consumer’scontributions related to depreciable assets i.e. Property, Plant and Equipment are initially recognisedas “Deferred Income” and recognised in the Statement of Profit and Loss on a systematic basis overthe period and in the proportion in which depreciation expenses on those assets are recognised. Theabove referred accounting policy being followed was in compliance with the previous GAAP i.e. AS –12, Indian GAAP as well as the current GAAP being followed i.e. Ind AS 20 Indian Accounting Standards(Ind AS) on ‘Government Grants’. The deferred income recognised in the Consolidated Statement ofProfit or Loss was determined based on Reducing Balance Method (Written Down Value) (RBM /WDV) upto financial year ended 31st March 2015, which was changed w.e.f. 1st April 2016 to StraightLine Method in order to further align / match the grant income recognition to the depreciation beingcharged in the Consolidated Statement of Profit and Loss. The rate applied for grant recognition isequivalent to rate of depreciation charge on the assets which is 5.28%.

The change was made based on the Group’s experience over the years and the circumstancesobtained at the time of change. The Group determined such change of method as change in accountingestimate based on the consideration of the relevant Ind AS, particularly para 34, 35 and 48 of Ind AS8 on ‘Accounting Policies, Changes in Accounting Estimates and Errors’ which was disclosed in thecritical judgements and notes to consolidated financial statements in the year of change. The Groupapplied such a change in estimate prospectively in compliance with Ind AS 8.

The office of C&AG, Ahmedabad vide their letter provided the audit comment on the financial positioni.e. Balance Sheet as at 31.03.2019 particularly Equity and Liabilities in relation to Deferred GovernmentGrants, Subsidies and Consumer Contributions and stated that the Group changed the method inorder to correct an error and such change should have been worked out retrospectively. Similarcomments were also issued for Financial Years 2016-17 and 2017-18 by C&AG office. The Grouphad provided explanation of its view, that such:

i. a change is not a correction of prior period error as the WDV method selected earlier, was aninformed and deliberated decision which was noted to be in compliance with the accounting standardsin the earlier financial years even by all statutory auditors of the concerned group Companies; and

ii. it is a change in estimate which has to be worked out prospectively.

Pursuant to the above referred comments by the C&AG Office in respect of accounting treatmentgiven by the Group, Gujarat Urja Vikas Nigam Limited (GUVNL), the parent Company, decided to


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consult and obtain an opinion from a reputed, prestigious and independent professional firm ofChartered Accountants. Accordingly, the parent Company GUVNL obtained the opinion from such aFirm (the Firm) on the accounting treatment given by the Group. The Firm has provided the opinionvide Letter dt. 1st September, 2020 and concluded that the change in estimates cannot be consideredas correction of Prior Period Error and impact of such change in the estimate need to be consideredprospectively. GUVNL has shared the Firm’s expert opinion with Office of C&AG vide Letter dt. 14th

September 2020.

Given this view, the Group has continued to recognise the change in method of computing Grant /Consumer Contribution received against depreciable asset to be recognised in the ConsolidatedStatement of Profit and Loss from Reducing Balance Method to Straight Line Method as not a correctionof prior period error but a “Change in Estimate” and accordingly continued to apply prospectively interms of provisions of Ind AS-8 “Accounting Policies, change in Accounting Estimates and Errors”.

If the Group had applied the above change in method retrospectively, the balances of the Governmentgrants and Consumer contributions as at 31st March, 2020 would have been higher by 145,015.03lakhs. The above information is only for comparative purpose and has no impact on these financialstatements.

65 Legal Ownership(Titles) of Immovable Properties

The immovable properties, which have been transferred to group Companies are held in the name oferstwhile GEB, the procedure for the registration and / or transfer in the name of the respectiveCompanies is under process.

66 Borrowing Cost

As per Ind AS 23-Para 6 and 6A “Borrowing Cost” Borrowing costs that are attributable to the acquisition,construction or production of qualifying assets are to be capitalized as part of such assets. Howeverit is not possible for the Group to directly arrive at cost to be charged to qualifying asset and hence ithas adopted the weighted average rate of borrowing of loans directly availed by the Group. Theamount of Borrowing Cost capitalized during the year amounts to 13.244.35 lakhs (P.Y. 21,937.92lakhs).

67 Additional information on Consolidated Financial Statements under Schedule III of the CompaniesAct, 2013


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Particulars As a % ofConsolidatedProfit or Loss

As a % ofConsolidated Net Assets

ParentGujarat Urja Vikas Nigam Limited 77.30% 24,10,036.35 6.82% 10,639.59SubsidiaryGujarat State Electricity Corporation Limited 25.27% 7,88,033.37 7.10% 11,073.14Gujarat Energy Transmission Corporation Limited 22.54% 7,02,894.43 48.05% 74,911.55Paschim Gujarat Vij Company Limited 28.99% 9,03,825.62 14.53% 22,657.21Uttar Gujarat Vij Company Limited 10.51% 3,27,721.85 7.48% 11,660.06Madhya Gujarat Vij Company Limited 7.10% 2,21,424.31 4.16% 6,488.41Dakshin Gujarat Vij Company Limited 8.16% 2,54,389.43 8.34% 13,007.63AssociateGujarat Industries Power Company Limited 2.37% 73,747.80 4.27% 6,654.98Joint VentureMahaguj Collieries Limited 0.00% - 0.00% -Eliminations -83.54% (25,86,213.22) -0.76% (1,177.47)

Total 98.70% 30,95,859.93 100.00% 1,55,915.09

Net Assets i.e. Total Assetsminus Total Liabilities Share in Profit or Loss

Amount( In Lakhs)

Amount( In Lakhs)

Share inOther Comprehensive Income

Share inTotal Comprehensive Income

As a % ofConsolidated Net Assets

As a % ofConsolidatedProfit or Loss

Parent

Gujarat Urja Vikas Nigam Limited 11.18% 3,415.47 5.76% 7,224.12

Subsidiary

Gujarat State Electricity Corporation Limited 10.96% 3,347.69 6.16% 7,725.45

Gujarat Energy Transmission Corporation Limited 15.64% 4,775.79 55.94% 70,135.76

Paschim Gujarat Vij Company Limited 24.59% 7,507.95 12.08% 15,149.25

Uttar Gujarat Vij Company Limited 14.31% 4,370.48 5.81% 7,289.58

Madhya Gujarat Vij Company Limited 9.38% 2,864.88 2.89% 3,623.53

Dakshin Gujarat Vij Company Limited 13.90% 4,245.80 6.99% 8,761.83

Particulars Amount( In Lakhs)

Amount( In Lakhs)


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Associate

Gujarat Industries Power Company Limited 1.56% 476.95 4.93% 6,178.03

Joint Venture

Mahaguj Collieries Limited 0.00% - 0.00% -

Eliminations -1.53% (467.65) -0.57% (709.83)

Total 100.00% 30,537.36 100.00% 1,25,377.73

68. COVID-19

COVID-19 virus, a global pandemic has affected the world economy including India leading to significantdecline and the volatility in the financial markets and the decline in economic activities.

The Group is engaged in the “Generation, Transmission, Distribution and Bulk Purchase & Sale(Trading) of Electricity”. Since electricity has been categorised as an “Essential Service”, the Groupwas in position to supply its services throughout lockdown period to all its consumers except tocommercial and industrial consumers in case of whom, there was drastic reduction of demand due tolockdown situation.

Estimation of Uncertainties:

The Group believes that it has taken into account all the known impacts arising from COVID-19pandemic in the preparation of the Consolidated Financial Statements. In developing the assumptionsrelating to the possible future uncertainties in the global economic conditions because of this pandemic,the Group, as at the date of approval of the financial statements has used internal and externalsources of information. However, the impact assessment of COVID-19 is a continuing process giventhe uncertainties associated with its nature and duration. The Group will continue to monitor anymaterial changes in the future economic conditions and the impact thereof on the Group, if any. Theeventual outcome of the impact of the COVID-19 pandemic on the Group’s business may be differentfrom that estimated as on the date of approval of these Consolidated Financial Statements.

Property, Plant and Equipment:

The Group has estimated recoverable amount of the cash generating units and has determined it tobe greater than the carrying amount. Reasonable sensitivities in key assumptions consequent to thechange in estimated future economic conditions on account of possible effects relating to COVID19 isunlikely to cause the carrying amount to exceed the recoverable amount of the cash generating unit.


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Capital Work-in-Progress:

There is impact on activities related to ongoing projects which have been hampered and may resultinto delays in implementation of these projects. However, the group expects that the ongoing projectswill be resumed and that the projects will remain commercially viable, taking into account the availabilityof resources.

Investments, Loans and Advances & Other Assets:

In assessing the recoverability of Group’s assets such as investments, loans, advances and otherfinancial and non-financial assets, the Group has considered internal and external information up tothe date of approval of the financial statements. The Group has performed sensitivity analysis on theassumptions used based on the internal and external information / indicators of future economicconditions and expects to recover the carrying amount of the assets.

Inventories:

The Group has evaluated the adequacy of provision on its carrying amount of inventory on account ofCOVID 19. However, based on the assessment made, no additional provision is required to thecarrying amount of inventory, as it has been moving in the ordinary course post the year end.

Trade Receivables:

The Group determines the allowance for credit losses based on historical loss experience adjusted toreflect current and estimated future economic conditions. In assessing the recoverability of tradereceivables, the Group has considered subsequent recoveries, past trends, and internal and externalinformation available upto the date of issuance of the financials. Based on assessment done by theGroup, there is no allowance for credit losses required based on the subsequent recovery of thesereceivables.

Revenue:

The Group’s revenue from “Generation, Transmission, Distribution and Bulk Sale of Power” hasdownward impact due to lockdown mainly in commercial and industrial units. Since this situation willlikely prevail in Financial Year 2020-21, the Group is in process of identification of loss in revenue dueto disruption of supply of electricity to these units.

Employee and Other Costs:

The Group is making payments of salaries and wages to all employees on its payrolls as also the


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contract workers during the time of lockdown. Further, the Group is also incurring various other costs,including fixed costs during the period of full/partial lockdown. This may impact the profitability levelsof the Group.

However, the subsidiary company GETCO is making payments of salaries and wages to all employeeson its payrolls as also the contract workers during the time of lockdown. It is to mention that Ministryof Finance, Government of India vide its notification no. 1/1/2020-E-II (B) dtd 23.04.2020 has decidednot to pay additional Dearness Allowance (DA) to the Central Government Employees due from01.01.2020. Further, it was also decided that additional instalments of DA due from 01.07.2020 to01.01.2021 shall also not be paid. However the DA at current rates shall continue to be paid. Further,the rates of DA as effective 01.01.2020, 01.07.2020 and 01.01.2021 will be restored prospectivelyand will be subsumed in the cumulative revised rate effective from 01.07.2021. No arrears from theperiod 01.01.2020 to 30.06.2021 shall be paid.

Contracts and Commitments (If Any):

The Group has binding purchase contracts with few of the suppliers for raw materials, power, etc.The Group has evaluated the impact of disruptions of business operations on those contracts.

Going Concern:

The management has evaluated the various financial ratios, expected ageing and maturities of assetsand liabilities and the various internal and external information available. The management does notsee any risks to Group’s ability to continue as a going concern and expects that Group will be able tomeet its liabilities in the foreseeable future, as and when the same fall due.

69 Statement of Management

a. The current assets, loans and advances are good and recoverable and are approximately of thevalues, if realized in the ordinary course of business unless and to the extent stated otherwise in theaccounts. Provision for all known liabilities is adequate and not in excess of amount reasonablynecessary. There are no contingent liabilities except those stated in notes.

b. Consolidated Balance Sheet, Consolidated Statement of Profit & Loss and Consolidated Cash FlowStatement read together with the schedules to the accounts and notes thereon, are drawn up so as todisclose the information required to the Companies Act, 2013 as well as give a true and fair view of thestatement of affairs of the Group as at the end of year and results of the Group for the year underreview.


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70 Previous Year figure have been regrouped, recasted and restated wherever necessary for comparativepurpose.

71 Approval of Financial Statements

The Consolidated Financial Statements were approved for the issue by the Board of Directors onNovember 10, 2020


Sd/-(SHAHMEENA HUSAIN, IAS)






Sd/-(PARTHIV BHATT)

Company Secretary







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( in Lakhs)

Note

1 There is significant influence due to percentage (%) of Share Capital.2 Net Worth attributable to Shareholding as per latest Balance Sheet

Net Worth of GIPCL as above 2,74,807.15Add: Proposed Dividend including Corporate Dividend Tax by GIPCL -

Net Worth after above adjustment 2,74,807.15GUVNL's group share in above Net Worth 73,748.17

Net worth attributable to Shareholding as per latest Balance Sheet 73,748.17

3 The share in the Net loss for the year of the Joint Venture of (66.58) lakhs is restricted to the amountof carrying value of investments as the Company does not have any obligation for the liability of JointVenture.








Sd/-(PARTHIV BHATT)

Company Secretary







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Form No. MGT-11 PROXY FORM

GUJARAT URJA VIKAS NIGAM LIMITED

Regd. Office: Sardar Patel Vidyut Bhavan, Race Course, Vadodara-390007.

Name of the Member/s :

Address :

E-mail Id :

Folio No. :

I/We, being a Member/s of _________ equity shares of Gujarat Urja Vikas Nigam Limited, Vadodara herebyappoint,

1. Name:

Address:

E-mail Id: Signature: ,or failing him/her

2. Name:

Address:


3. Name:

Address:


as my/our proxy to attend and vote for me/us and on my/our behalf at the SIXTEENTH ANNUALGENERAL MEETING of the Company to be held on Wednesday, the 30th December, 2020 atRegistered Office and any adjournment thereof in respect of such resolutions as are indicated below:


358


1 Adoption of Audited Financial Statements including Consolidated Financial Statements of theCompany for the financial year ended 31st March, 2020, together with the Board’s Report, the Reportof Auditors’ thereon and the Comments of the Comptroller & Auditor General of India, in terms ofSection 143(6) of the Companies Act, 2013.

2 To take note of appointment and to authorize the Board of Directors of the Company to fix theremunerationpayable to StatutoryAuditors of the Company appointed by the Comptroller and AuditorGeneral of India (C & AG), New Delhi, for the Financial Year 2020-21, in terms of the provisions ofSection 139(5) read with Section 142 of the Companies Act, 2013

Special Business

3 Ratification of remuneration of Cost Auditors appointed for F.Y. 2020-21 – Ordinary Resolution.

Resolutions

Ordinary Business

Signed this _______________ day of _____________ 2020.

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.

AffixRevenueStamp& Sign


Documents

English GUVNL...1 GUJARAT URJA VIKAS NIGAM LIMITED 16TH ANNUAL REPORT 2019-20 CONTENTS Page No. Board of Directors 2 Notice of Adjourned Annual General Meeting 3 Notice 4 Board’