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Corporate office
1(.R.Circle, BENGALU RU-560001
13th ANNUAL REPORT
OF
BESCOM
FOR THE FINANCIAL
YEAR 2014-15
~ Bangalore Electricity Supply Company Limited~ (Wholly owned Government of Karnataka Undertaking)
(CIN- U04010KA2002SGC030438)Registered Office: Corporate Office, K.R.Circle, Bengaluru - 560 001
Telephone No. : 080-22266011 / 22266033, Fax No. 080-22354925
Website:www.bescom.org , E-mail: cs(a:)bescom.co.inRef NO.BESCOMjBC-04jCSj Date :26.09.2015End: (1) Blank Shorter consent Notice. (2) Blank Proxy form
NOTICE
NOTICEis hereby given that the 13th Annual General Meeting of the Members ofBangalore Electricity Supply Company Limited will be held on Wednesday,the 30th September 2015 @ 1:00PM at Corporate Office, K.R.Circle,Bengaluru- 560 001 (at a shorter notice) to transact the following business :-
ORDINARY BUSINESS:
Item No.1 - Adoption of financial statements (including CFS)
To receive, consider and adopt the financial statement of the Company for theyear ended 31st March 2015 including the audited BalanceSheet as at 31st March2015, the statement of Profit & Lossfor the year ended on that date and reports'of the Board of Directors (the Board) and Auditors report together with thecomments received from the Comptroller & Auditor General of India underSection 146 (6) of the CompaniesAct, 2013.
Item No.2 - To declare a dividend on equity shares I any otherdecision if thought fit as persection123of CompaniesAct 2013.
Item No.3 - To consider appointment of Auditors and to fix theirremuneration and in this regard to consider, if thought fit, to pass withor without modification(s), the following resolution:-
"RESOLVEDTHAT, pursuant to the provisions of section 139 (5) of theCompaniesAct, 2013 and pursuant to the recommendations of Comptroller andAuditor General of India, Mis. V.K.Niranjan & Co., Chartered Accountants,Kurubara Sangha Building, KanakadasaCircle, Gandhi Nagar, Bengaluru - 560009 be and is hereby appointed as the Statutory Auditors of the Company, tohold the office from the conclusion of Annual General Meeting (AGM) till theconclusionof next AGMat the remuneration as recommended by the Board
By order of the BoardFor Bangalore Electricity Supply Company Limited
Sd/-
(K.T.HIRIYANNA)Company Secretary
Bangalore Electricity Supply Company Limited(Wholly owned Government of KarnatakaUndertaking)
(CIN- U0401 OKA2002SGC030438)Registered Office: Corporate Office, K.R.Circle, Bengaluru - 560 001
Telephone No. : 080-22266011/ 22266033, Fax No. 080-22354925
Website:www.bescom.org , E-mail: cs(a)bescom.co.in
NOTES:
1. A member entitled to attend and vote at the Annual General Meeting
is entitled to' appoint a proxy to attend and vote instead of himself
and the proxy need not be a member of the COmpany.2. The Company being a Government Company, the Comptroller &
Auditors General of India will appoint the Auditors of the Company
for the year 2015-16 under section 139 (5) of the Companies Act,
2013.3. The Company being a Govt. Company, the aspect of declaration of
dividend will be in accordance with the recommendation of the C-JBoard, decisions of shareholders as deem fit and in accordance with
the provisions of Companies Act, 2013.
By order of the BoardFor Bangalore Electricity Supply Company
LimitedSd/-
(K.T.HIRIYANNA)Company Secretary
Place: Bengaluru
Date:26.09.2015
BOARD OF DIRECTORS
(As on the date of AGM)218
S1.Names Position
No.1. Sri.P.Ravi Kumar, lAS., Chairman
2. Sri.Pankaj Kumar Pandey, lAS., Managing Director
3. Sri.Jawaid Akhtar, lAS., Director
4. Sri.Gaurav Gupta, lAS., Director
5. Sri.H.Nagesh, B.E, FIE., Director (Tech)
6. Sri.B.L.Guru Prasad, IRS., CFO & Director (F)
7. Smt.Dipti Aditya Kanade, lAS., Director
8. Sri.T.H.M.Kumar, lAS., Director
9. Sri.K.T.Mahanthappa, B.E., Director
10. Sri.M.Nagaraja, B.E., Director
11. Sri.A.N.Jayaraj, B.E., Director
COMPANY SECRETARYSri. K.T.Hiriyanna
STATUTORY AUDITORSMfs.Niranjan & Co.,
Chartered Accountant, Bengaluru
Cost Auditors
Mfs.Murthy & RaoCost Accounts, Bengaluru
Secretarial Auditors
Mfs.P.K.Pande & AssociatesPracticing Company Secretaries
Bengaluru
Registered Office: Corporate Office, K.R.Circle,Bengaluru - 560 001, Karnataka
219
DIRECTORS' REPORT
Dear Members,
Board of Directors of Bangalore Electricity Supply Company Limited(BESCOM) have pleasure in presenting the Thirteenth Annual Report for the year2014-15 and the Audited Accounts of the Company for the year ended March 31st
2015.
Bangalore Electricity Supply Company Limited was incorporated on 30th
April 2002 under the Companies Act, 1956 and commenced its operations witheffect from 1st June 2002.
The Company has successfully completed thirteen years in the "Distributionof Electricity." The Company having its headquarters at Bangalore city has itsjurisdiction comprising eight districts viz., Bangalore Urban, Bangalore Rural,Kolar, Ramanagara, Chikkaballapura, Tumkur, Davanagere and Chitradurga.
During the year 2014-15, the Company took various initiatives forrendering better services in line with Government Objectives and Policies. TheCompany had set its agenda for quality service in "Distribution of Electricity" toits consumers by strengthening the distribution network and improved efficiencymeasures in the field of Information Technology.
BESCOM continued its pursuit of higher goals in the direction of increasedMetered Sales, increased Revenue realization, meaningful "Energy Audit" at 11KV & below and increased customer care activities using Information Technologyby reducing human intervention etc. All these have been ably supported by theemployees and the result is reflected in present improved position of theCompany.
The progress of the Company on different parameters IS enumeratedhereunder.
1. STRATEGY AND VISION OF THE COMPANY:
The vision of BESCOM is to become number one in customer satisfactionin South Asia in Power Distribution. In order to achieve this vision, the Companyhas drawn up a strategy with focus on customer satisfaction, regulatorycompliance and meeting stakeholder expectations etc.
1
---------------------
220
II. MISSION:
The Mission of BESCOM is to ensure absolute consumer satisfaction andcontinuous profit in business by:
a) Ensuring total employee satisfaction.b) Developing infrastructure commensurate with growth, thus ensunng
reliable and quality power supply.c) Using best technology in communication and best practices in power sector.
Ill. PERSPECTIVE:
BESCOM covers a geographical area of 41,092 Sq. Kms with a populationof 207 lakhs and serves more than 94.44 lakhs customers. The total asset is worthRs.12615.40 Crores as on 31st March 2015.
1 Area 41,092 Sq.Kms
2 District 8
3 Population 20.7 Million
4 Consumers' 9.44 Million
5 No.ofDTCs 211287
6 HT Line length 86256.47 Ckt. Kms
7 LT line length 161186.08 Ckt..Kms
8 Employee Strength
9 Sanctioned 21455
10 Working 12358
Total Assets Rs. 14645.71 Crores
(a) Consumer Population:
Consumer population served by BESCOM is steadily increasing andrecorded an increase of 5.83% in FY-15 over previous year. The number ofconsumers existing as on 31-03-15 stands at 94,44,518.
Category wise consumers are furnished below:
As on As on % ofSI.N. Category 31-03-2014 31-03-2015 Increase
1 Bhagya Jyothi 7,32,030 7,69,153 5.07
2 Domestic Lighting and AEH 60,72,901 63,89,122 5.21
3 Commercial Lighting 8,24,739 8,64,600 4.83
2
2214 LTPower 1,69,289 1,75,326 3.57
5 HT Power 10,449 11,416 6.41
6 Irrigation Pump sets 6,96,446 7,70,469 11.11
7 Street Light & Others 1,06,814 1,15,489 8.12
8 Temporary Power 2,66,311 3,48,943 34.14
9 Defunct IP Installations 48,673 0 -100.00
TOTAL 89,24,652 94,44,518 5.83
(b) Tariff wise number of consumers and its proportion to the total as on 31-03-15.
Tariff LT1 LT2 LT3 LT4 LT5 LT6 LT7 Defunct
Number of769153 6389122 864600 770469 175326 115489 348943 0
consumers% to Total 8.l4 67.65 9.15 8.16 1.86 1.22 3.69 -
Tariff HTl HT2A HT2B HT2C HT3 HT4 HT5 Total
Numberof 186 5414 4893 380 29 217 297 99,44,518
consumers% to 0.12
100.00%Total
IV. FINANCIAL PERFORMANCE:
The financial performance of the Company during the Financial Year 2014-
15 is highlighted as below:
For the year For the year ended
SI.No. Particulars ended 31 March, 201431 March, 2015 Rs. Rs.
1 Revenue from operations 134796046743 116173534966
2 Other Income 2052439266 18278 56287
TOTAL REVENUE 13684 84 86 008 11800 13 91 253
3 ExpensesPurchase of Power 116850283737 10656 87 27 849Other operating expenses 549402861 51 65 67266Employee Benefits Expenses 8023529384 7532777251
222Other expenses
I
397 07 21 062
I
3193464028Finance costs 3976620444 3234543618TOTAL EXPENSES 132270557489 121046080012
4 Profits before Depreciation, Priorperiod items, exceptional items,extraordinary items, Income Tax(1+2-3)
3477928519 -304 46 88 7605 Depreciation 19978 51 796 126 1825 520
6 Profit / (Loss) before Prior period 1480076723 -430 65 14 280items, exceptional and extraordinaryitems and Income Tax (4-5)
7 Exceptional items 228507802 434992916
8 Profit / (Loss) before Prior period 1251568921 -474 1507
items, extraordinary items and Tax 196
(6-7)9 Prior period Expenses (+) / Income (-) 1403 67373 306738 538
10 Extraordinary & Prior period items - 5245300000
11 Profit / (Loss) before Tax (8-9) 1391936294 810531342
12 Income Tax Expenses:(a) Current tax expenses 257500000 49500000
(b) Less: MAT credit(c) Deferred tax(d) Tax expenses relating to prior.
years
13 Profit / (Loss) from continuing 1134436294 761031342
operations (10-11)
14 Profit / (Loss) from discontinuingoperations
15 Profit / (Loss) for the year (12+ 13) 113 44 36 294 761031342
16 Earnings per equity share of Rs. 10each.(1) Basic 2.07 1.39
(2) Diluted - -
General note (Note No.30) form anintegral part of these financialstatements
4
223
V. SUB STATIONS:
BESCOM is receiving energy through the following Transmission Network
& Electrical Substations.
Voltage Class of No. of SubstationsStations400Kv 3
220Kv 39
1l0Kv 28
66Kv 357
Total 427
VI. POWER PURCHASE:
(1) BESCOM is purchasing power from power generators as perGovernment of Kamataka Order No. EN 131 PSR 2003 dated 10.5.2005w.e.f., 10.6.2005. The purchase of power from various sources such asHydel, Thermal, Biomass, Wind, Solar etc., is allocated by theGovernment of Kamataka.
The power is procured from:(a) Central Generating Stations like NTPC, NLC, NTECL, Kaiga,
Kudankulam and MAPS(b) State owned generating stations of KPCL- Hydel, Thermal, Solar
and Wind.(c) Independent power producer - Udupi Power Corporation Ltd.(d) Independent power producers Non-conventional energy sources like
Wind, Biomass and Mini-hydel.
The capacity available from various sources is as below.
Sources Capacity in MW.Hydel 1032.87
Thermal 3737.62Atomic 179.10
Non-ConventionalProjects 1237.00Total 6186.59
(2) The share of allocation for various power projects as per Government ofKamataka Notifications and average power purchase cost per Kwh areas follows:
5
224
S1. Share ofAv. Power
Source Purchase CostNo. allocation
in paise/Kwh.1 (a) KPCL Hvdel: 27.89%/31.91 % 57.00(b) KPCL Thermal:
RTPS 1 to 7 50.44% 367.36RTPS VIn 50.44% 550.83BTPS Unit I 50.44% 400.67BTPS Unit II 50.44% 401.92
2. Central Geueratinz Stations:(a) NTPC 50.44% 296346
(b) NLC 50.44% 326.80
(c) Kaiga 50.44% 308.23
(d) MAPS 50.44% 207.74
3. Major IPPsUdupi Power Corporation Ltd. 77.35% 428.14
4. Minor IPPs (NeE Projects)Biomass 100% 511.49
Mini Hydel 100% 327.18
Wind 100% 357.02
Solar 100% 773.28
UI 50.44% 230.63
Medium Term 51.50% 464.87
Short Term 66.666%/51.50% 550.00
Sec 11 49.64% 550.00
(3) Transmission Charges:BESCOM is making payment of transmission charges to KPTCL and
PGCIL. The Transmission Charges being paid to KPTCL on MW basisas approved by KERC and for PGCIL, it is as approved by CERC. V
(4) Energy Charges:
(a) The total energy purchased at generation point, energy drawn at IFpoint and cost thereon, are as follows.
Total EnergyTotal energy Power Average Powerdrawn at IF Purchase Purchase cost Rs lunit)
purchased in points in cost(Rs. in At J.P.MUs MUs Crores)
At Gen. point IF.
29423.03 28256.47 11689.56 3.97 4.15
6
225
(b) Comparison of Source-wise power purchase cost during 2014-15 and
2013-14
2014-15 2013-14
SL. ENERGY AMOU ENERGY AMOUSOURCE PURCHAS NT IN PURCHAS NT IN
No.ED IN CRORE ED IN CROREMUs S MUs S
1 Hydel Power 4225.16 393.89 4535.86 359.64
2 Thermal Power 17120.56 6651.74 15089.14 5670.583 Lignite Power 1425.85 465.97 1370.15 413.314 Atomic Energy 1384.37 392.23 1039.33 288.09
5 Major IPPs - 13.30
6Non-conventionalEnergy 316.13 175.73 69.04 37.24
7 Wind Mill Energy 2259.85 806.63 2441.56 867.438 Diesel Generating -0.53 19.57 39.77
9Unscheduled InterChange Charges 165.55 38.18 -119.56 -21.24
10Short TermPurchase 3300.85 1714.83 4012.93 1947.63Tr.
11 Charges(KPTCL/PGCIL) - 1267.10 - 1295.99
12 Other Expenses1. POSOCO Charges - 1.49 - 1.63
SLDC O&M17.1611.
Expenses - - 11.36
... Cost of Banked111.
Energy - - 4.03
PCKL Rev.2.81IV.
Expenses - - 4.09
13 Energy Balancing -790.08 -297.94 -547.68 -213.4514 Inter ESCOM 14.79 5.81 17.90 9.2215 Tangendco - 0.18 - 0.2316 Legal E~enses 0.28
17Prior period
330.01 125.40expenses - -
18 Prior period-276.02 -151.50Income
TOTAL 29423.03 11689.56 27928.24 10702.75
7
226
(c) Statement showing the details of power purchased, power purchasecost (P.P.Cost) and cost per unit from various sources and
transmission charges and other charges for the year 2014-15.
SL. NAME OF THE CONSAMOUNT P.P
No. COMPANY IN MUsBILLED (Rs. In COST
crores) (Rs/Kwh)
1 Central projectsNTPC 4262.87 1263.79 2.96
NLC 1425.85 465.97 3.27
MAPS 82.22 17.08 2.08
KAIGA 848.81 261.63 3.08
VALLVR 218.41 83.26 3.81
KUDANKULAM 453.34 113.52 2.50
NTPC BUNDLEDPOWER(Coal) 249.48 85.94 3.44
CGS Total 7540.98 2291.19 3.04
VI CHARGES 165.55 38.18 2.31
TBHE 8.41 0.88 1.05
Jurala 55.94 25.42 4.54
Total 229.90 64.48
Medium term2 Purchases
Mis NETSMis JSW 1611.44 837.95 5.20
Mis lEX & PEXNUs BMM IspatMls.ESSAR POWER 11.76 5.45 4.63
Mis . IDEAL ENERGY 5.51 2.48 4.50
Mis GUVNL 13.45 3.69 4.26
Medium term Total 1642.16 849.57 5.17
3 Short term PurchasesGlobal Energy 814.19 404.68 5.5
Harekrishna Metallics 8.95 4.91 5.5
BNlM Ispat 247.58 135.95 5.5
ISW 113.45 61.99 5.5
Reliance 26.24 14.43 5.5
Dhruvadesh Metasteels 18.68 10.22 5.5
Tata 141.98 77.20 5.5
Nirani Sugars 33.54 18.21 5.5
PTCIL 120.49 64.44 5.5
Athani Sugars 28.72 15.80 5.5
Satish Sugars 35.58 19.53 5.5
GMR 69.29 37.90 5.5
8
227Short term Total 1658.69 865.26 5.5
SEC-11 Energy 207 110.67 5.5
3 State ProjectsKPCL- HYDEL 3682.21 211 0.57
KPCL-DG -0.53
KPCL- THERMAL 7773.99 3031.92 3.9
KPCL-WIND 9.11 3.06 3.36
KPCL-SOLAR 4.38 2.62 5.98
4 Private Producers
OPCL 4550.28 2117.90 4.28
5 NCE ProjectsBio-Mass 70.93 36.28 5.11
Mini-Hydel 478.60 156.59 3.27
Wind 2250.74 803.56 3.57
Solar 33.83 26.16 7.73
NTPC BUNDLEDPOWER (Solar) 65.52 68.94 10.52
SUB-TOTAL (I) 30198.32 10638.31 3.52
6 Transmission ChargesPGCIL Tr. Charges - 234.56
KPTCL Tr. Charges - 1032.54
SUB-TOTAL (II) 0 1267.10INTER ESCOM
7 EXCHANGE POWER
GESCOM 1.54 0.61
MESCOM -3.58 -1.41HESCOM 21.24 8.35CESC -4.41 -1.73ENERGY BALANCING
8 CHARGES
GESCOM -29.66 -89.56MESCOM -59.40 -5.94CESC -288.69 -110.73
HESCOM -412.33 -91.71
OTHER CHARGESCost of Banked EnergySLDC O&M Expenses 17.16POSOCO charges 1.49Tangendco 0.18PCKL Rev. Expenses 2.81Legal Expenses 0.27SUB-TOT AL(III) -775.29 -270.21Prior period Expenses 330.01Prior period Income -276.02GRAND TOTAL 29423.03 11689.56 3.97
9
228(d) BESCOM has purchased power from various short term and medium
term contractors to mitigate power shortage situation. The mediumterm contractors are Mis. JSW, Mis. GUVNL, Mis. Essar Power andMis. Ideal Energy. The short term contractors are Mis JSW, Mis.PTCIL, Mis. TATA, Mis. Dhruvadesh Metasteels, Mis HarikrishnaMetallics, Mzs.Reliance, Mis. BMM Ispat, Mis. Athani Sugars, Mis.Satish Sugars and Mis. Nirani Sugars. The quantum of energypurchased and amount paid for Medium/short term contracts isfurnished as below:
Statement showing the details of energy purchased and amount paid forShort term/ Medium term contracts in 2014-15.
ENERGY Rate AMOUNT(in MUs) (Rs/uint) (Rs/crore)
MEDIUM TERMMis JSW 1611.44 5.20 837.95
Mis Essar Power 11.76 4.63 5.45
Mis Ideal Energy 5.51 4.5 2.48
Mis GUVNL 13.45 4.26 3.69
Total 1642.16 5.17 849.57
SHORT TERMGlobal Energy 814.19 5.5 404.68
Harekrishna Metallics 8.95 5.5 4.91
Bl'vIMIspat 247.58 5.5 135.95
JSW 113.45 5.5 61.99
Reliance 26.24 5.5 14.43
DhruvadeshMetasteels 18.68 5.5 10.22
Tata 141.98 5.5 77.20
NSL Sugars 33.54 5.5 18.21
PTCIL 120.49 5.5 64.44
Athani Sugars 28.72 5.5 15.80
Satish Sugars 35.58 5.5 19.53
GMR 69.29 5.5 37.90
Short term Total 1658.69 5.5 865.26
SEC-II 207.00 5.5 110.67
TOTAL 3507.85 5.20 1825.50
(e) The following Power Purchase Agreement have been signed byBESCOM which is approved by KERC during 2014-15.
S1.No. Source No. Capacity in Mw
1 Wind 1 17.85
2 Solar PV Plants 11 263
10
229(5) Peak Load:-
The details of peak load of state and BESCOM and energy input for year2014-15 is furnished below:
Maximum Minimum WheeledInput
Month BESCOM BESCOM Energy inEnergy of
BESCOM in(in MW) (in MW) kwh MUs
MUsApr-14 4344 2751 50.46 2611.70
May-14 4148 2069 54.28 2455.18
Jun-14 4081 ..•>1696 < > 69.81 2287.54
Jul-14 4093 1733 91.58 2334.14
Aug-14 4175 19373 97.86 2224.58
Sep-14 4177 1961 100.82 2220.88
Oct-14 3763 1830 106.23 2027.54
Nov-14 3957 2012 103.25 2145.27
Dec-14 4318 2446 108.43 2389.01
Jan-I5 4592 2202 119.41 2485.72
Feb-15 4608 2607 115.61 2381.40Mar-15 1······· ••.•··••••4639,·· •••·•·· 2799 130.45 2693.51
Total 1148.18 28256.47
(6) Energy at IF points:-
The total energy drawn at IF points 28256.47 MU. The energy drawnat IF point during previous years, percentage of increase in each year,energy sales, percentage of increase in each year and distribution loss are asfollows.
% increase Energy0/0 Distri
Energy increase butio AT&Sl.Year MUat
over availableNo. previous for
over n CIF points previous Loss( Lossyear sale(MU)
year %)1 FY
15321 4.55 11613.6934.25
2006 5.15 24.20
2 FY18522 20.89 14126.45 2l.64
26.552007 23.73
"J FY 26.15.J18665 0.77 14933.57 5.71 19.992008
4 FY19566 4.83 16310.48
17.422009 9.22 16.64
5 FY20329 3.9 17251.6 5.77 15.14
17.542010
6 FY21909 7.77 18736.12 8.6 14.48
18.542011
11
2307 ! FY 24584
19.50
I 201210.88 21029.95 12.24 14.46
8 FY 26568 8.072013
22796.00 8.40 14.20 19.22
9 FY26786 0.94
201423065.37 1.18 13.89 16.97
10 FY28256 5.49
201524436.08 5.94 13.52 16.76
VII. METERED CONSUMPTION:
YearEnergy Input Consumption by % Increase over
(MU) Metered Category previous year
FY-06 15321 8307.06 15.58
FY-07 18522 9717.36 16.98
FY-08 18665 11283.82 16.12
FY-09 19566 12205.78 8.07
FY-I0 20329 12940.32 6.02
FY-ll 21909 14263.20 10.23
FY-12 24584 15675.92 9.90
FY-13 26568 17069.13 8.89
FY-14 26786 17827.25 4.44
FY-15 28256 18676.96 4.77
VIII. SALE OF ENERGY:
During FY-15, 24436.08 MUs were sold to various categories of consumers,out of which 18676.96 MUs (Including Inter Escoms) were under meteredcategory and the balance of 5759.l2 MUs was accounted under unmeteredcategory. The distribution loss for the year is assessed at 13.52% and AT & Closs
is assessed at 16.76%.
(a)Metered Energy Sales:-
Sl. Category In MusNo.
1 Bhagya Jyothi 135.85
2 Domestic Lighting. incl. AEH 5718.72
3 Commercial Lighting 1663.33
4 IP set (Metered) 179.67
5 L.T. Power 1134.22
6 H.T. 8830.72
7 Water Works / Public Lighting 820.00
12
2318 Temporary installations 194.45
TOTAL 18676.96
(b) Un-Metered Energy Sales:-
Sl. No. Category In MUs
1. Irrigation Pump Sets 5759.12
TOTAL 5759.12
(c) Category wise energy sold 2014-15:-
."Tariff LT1a LT2 LT3 LT4 LT5 LT6 LT7 HT TOTAL
DomesticWater
Category BJ Lighting Comml IP SetIndus- Works &
Temp Alltries Street
& HeatingLight
Energy1663.3 5938.7 1134.2
Sold in 135.85 5718.723 9 2
820.00 194.45 8830.72 24436.08MUs
(d) Break up ofHT sales:-
HTI HT2A HT2B HT2C HT3 HT4 HT5
. Water ResidentialTOTAL
Industrial Commercial Hospitals Lift Irrigation TemporarySupply Apartments
664.24 4750.15 2795.89 189.32 18.29 127.25 285.58 8830.72
" IX. REVENUE DEMAND AND COLLECTION:-
(a) Revenue Demand:The revenue demand consequent to the growth in consumers and
tariff has increased over the years as follows:
SINo.Financial YearlRevenue
Demand01 Demand FY08: Rs. 5807 Cr
02 Demand FY 09: Rs. 6190 Cr.
03 Demand FY 10: Rs. 6792 Cr.
04 Demand FY 11: Rs. 8246 Cr.
13
232
05 Demand FY 12: Rs. 9348 Cr.
06 Demand FY 13: Rs.I0724 Cr.
07 Demand FY 14: Rs.11560 Cr.
08 Demand FY 15: RS.13385 Cr
(b)Revenue Collection:The revenue collections have also increased over the years as follows:
Sl No. Financial YearlRevenueCollection
01 Collection FY 08: Rs. 5360 Cr.
02 Collection FY 09: Rs. 6132 Cr
03 Collection FY 10: Rs. 6600 Cr.
04 Collection FY 11: Rs. 7855 Cr.
05 Collection FY 12: Rs. 8794 Cr.
06 Collection FY 13: Rs.10096 Cr.
07 Collection FY 14: Rs.11147 Cr.
08 Collection FY 15: Rs.12884 Cr.
(c) Revenue from the consumers is being collected through the following
systems:
As a consumer friendly measure, BESCOM has initiated a number ofactions intended to increase consumers comfort while dealing with BESCOM. Asa part of this a number of payment channels/mechanisms are provided to them,
VIZ:-
(1)Bangalore Metropolitan area Zone:
(a) Electronic Clearance Scheme(Direct debit from the bank a/c -initiated by RBI)
(b) Bill Junction(ECS mandate & online)(c) Easy Bills (Counters)(d) Bangalore One (Centers)(e) City Union Bank (Counters)(f) IDBI Bank (Bescom website)(g) Pay u mobiles (mobile application online)(h) Mobile Governance(i) Bill Desk (online & electronic bill presentment)U) BESCOM Cash Counters(k) Post Office(1) IMI Payments(m) Cheque Drop Boxes
14
233(2) RAPDRP Towns:
(a) Online payments (Bescom Web site)(b) BESCOM Cash Counters(c) Cheque Drop Boxes
(3) Non RAPDRP Areas:
(a) Online payment (Bescom Web site)(b) BESCOM Cash Counters(c) Cheque Drop Boxes(d) Micro Feeder Franchise(e) Davanagere One(f) Tumkur One(g) Easy Bill
x. DEMAND SIDE MANAGE:MENT (DSM) MEASURES:
The following DSM measures were taken in the year 2014-2015 BESCOM tosave energy:
(a) Implementation of Solar Rooftop system:-
The Government of Kamataka has announced the solar policy 2014-21 for grid connected solar rooftop system under net-metering basis on22.05.2014 and set up an SRTPV Target of 100 MWs per year from theyear 2014-15 to 2017-2018. BESCOM online application for gridconnectivity, KERC approved guidelines, timelines and standard format ofapplication, power purchase agreement and other formats for SRTPVplants are made available in the BESCOM website.
~ On 07.11.2014 Hon'ble Minister for Energy, GoK, Sri. D.KShivakumar has launched grid connected Solar Rooftop programme(On Net metering basis) in BESCOM which was extended to entireKamataka State.
~ Under this facility, the consumers can setup solar PV plants atunutilized places on rooftops of buildings of individual households,industries, offices, institutions, residential complexes, etc.
~ The grid connected rooftop solar photovoltaic power generation plantsfrom 1KWp to 1MWp capacity per project/system to generateelectricity/power would be eligible under the Programme.
~ The programme is being implemented in Urban and Rural Areas aswell.
15
234>- The programme encourages installation of rooftop solar photo voltaic
power generation plant for self-consumption as well as supply/sale of
electricity to the grid.
(b)Technical Workshop on Solar rooftop system:-
>- One day workshop at Bangalore on 09.10.2014 was arranged for adiscussion on Solar Rooftop PV Programme wherein many technical
issues were deliberated.);;- Chairman and Members of KERC, Addl. Chief Secretary to Govt,
Energy Department, MDs' of KREDL, MESCOM, CESC, GESCOM,HESCOM, CEI, and Engineers deputed from ESCOMs, along withExperts from GERMI, USAID Agency were participated in the
discussions.
(c) Training programme to officers ofESCOMs:-
);;- Two days' Training programme on "Implementation of Solar RTPV ~".iIIsystem" was conducted in three batches. Engineers from all ESCOMs Vwere participated in the training programme. Experts from Solar fieldsuch as KERC, USAID, CPRI, KPCL National Training Centre haddelivered lecturers on various topics of Solar RTPV system.
);;- Book materials and CDs were got printed and distributed to thetrainees. About 195 Engineers/Officers were attended the training
programme.From 07.11.2014 to 31.03.2015, 20 nos. of Solar Rooftop installationsare serviced with a total capacity of364.15kWp.
(d) Installation of 50kWp Solar RTPV grid connected power plant in thepremises of Corporate Office, BESCOM, Bangalore (as a Pilot schemeto promote large scale grid connected rooftop solar photovoltaicprojects in Bangalore):-
Work Award has been issued for design, manufacture, supply,installation, testing, commissioning including warranty operation andmaintenance for a period of two years for providing and installation of 50kWp Solar RTPV grid connected power plant in the premises of CorporateOffice, Block-Il, BESCOM, Bangalore (as a pilot project) to promote gridconnected Solar rooftop PV project in BESCOM vide No: BESCOM/BC-5113409/2012-13/CYS-09 dtd: 30.06.2014. Total cost of the project is Rs.49,84,875/-. The installation is serviced on 07.11.2014 on trial basis andcommissioned on 31.03.2015. The total generation as on 06.04.2015 is
30316 units.
16
235XI. DSM through various schemes:'
(a) Surya Raitha Scheme:
BESCOM has initiated to arrange power supply to 250 no's ofIP setsof Harobele 11KV feeder of Kanakapura sub-division on pilot basis. DPRhas been prepared. Tender is called for "Design, Supply, Testing,Installation, Commissioning, Repair and Maintenance for a period of10 years of 250 nos. grid tied Solar PV based Irrigation pump setsunder "Surya Raitha Scheme" on l1kV Harobele F2 Feeder,Kanakapura Taluk, Ramanagara district, Karnataka state on NetMetering basis as a pilot scheme". Approximate cost of the project isRs.23 Crores. The project promotes replacing existing inefficient IP setswith efficient pump sets and energizing these IP sets with solar power andfeed in excess energy to the grid on net-metering concept. The excessenergy fed into the grid will be paid back to the farmers as per tariff fixedby KERC resulting in additional income to the farmers apart from theincome earned through crops.
The scheme will be financed by a combination of farmer investment,GoK investment, 11NRE subsidy and BESCOM investment though softloans that will be repaid by the farmer through his net metering tariffrevenues in initial years. The net metering revenues will be deposited intoan escrow account and will be diverted first to the loan account and, if insurplus, to the farmer's account.
(b) Providing advertisements on energy savings through Digital DisplayInfotainment System (DDIS) at railway reservation counters:-
BESCOM has initiated to advertise DSM measures through DDISsystem coming under jurisdiction of BESCOM at Railwayreservation/ticketing counters through LED TV screen spread in all themajor passenger reservation systems (PRS) and un-reserved ticketingsystems (UTS) Railway stations for a period of one year. Work award hasbeen issued to Mis Vyoma Technologies. Advertisement is progressingsuccessfully at all 120 nos. of railway reservation centers in BESCOM areafrom 18.06.2014. Total cost the project is Rs.47,04,4801-
(c) Distribution Energy Efficiency Project (DEEP) by providing DynamicReactive Compensation (DRC) for power factor improvement schemeon 11 kV feeders:-
BESCOM has proposed to implement Distribution Energy EfficiencyProject (DEEP) by providing Dynamic Reactive Compensation (DRC) forpower factor improvement scheme on selected 11 kV feeders on pilotbasis. DEEP system consists of Multifunction Measurement and Controlunit (MFM), GSMlGPRS modem, capacitors, capacitor-duty contractors,
17
236isolation transformers and associated. The DEEP systems address the
following functional need:• DTR metering towards energy audit and accounting.• Dynamic Reactive Compensation to improve power factor to::: 0.95 lag
&S 1.0 for all normal operating conditions of DT towards line loss
reduction.• Programmable threshold limit alerts to eliminate DT burnouts due to
overloading.• Load balancing opportunity towards enhanced performance.
A pilot project consisting of 1x25 KVA, Ix63 KVA and 1xI00 KVAis implemented through EESL (Mis OAS, Chennai) on F-6 feeder ofThenganayakanahalli of 66/11 KV V.R.Doddi substation of Sathnur(O&M) sub-division in Kanakapura division.
(d) Vidhyuth Jagruthi Yojane:-
);- "Vidhyuth Jagruthi Yojane" an awareness program introduced forschool/college students to bring in u"-'~:"L"':'~-::::::::; 0.;!-:.::, :.;::' f-]lm
communicate this in their families. Work award issued to Mis TERI forthe work of "Design and implementation of conducting energyefficiency measures and demand side management awareness activitiesin selected 100 schools/colleges in Bangalore UrbanlRural District andto sensitize approximate fifty thousand students and to bring downenergy consumption on contract period of two academic years".
);- The agency has to collect last one year electricity consumption data ofselected schools and from fifty thousand students (preferably). Theagency has to achieve 5.2 MU of energy saving for two academic
years.
(e) Agriculture Demand Side Management, WENEXA-USAID:-
• BESCOM has replaced inefficient irrigation pump sets by high energyefficient pump sets on HVDS feeders at Doddaballapur Sub-Divisionas a pilot project through ESCO model.
• This pilot is the first of its kind in India to undertake AgricultureDemand Side Management under ESCO model.
• A total number of 277 inefficient Pump sets at metered locations inDoddballapura Sub-Division were replaced by High Energy Efficient
Pump Sets.• BESCOM has saved 63,01,593 units (6.3 NlU - 35%) from this project
between April 2011 to Nlarch-2015 at Doddaballapura• KERC has issued directions to Scale up this project.
18
237
A contract agreement was signed on 07.08.2013 between BESCOMand Mis. Energy Efficiency Service Ltd., a joint venture company ofpublic sector units (PSU's) of Ministry of Power, New Delhi forAgriculture Demand Side Management i.e., for preparation of DPR toreplace one lakh nos. of less efficient IP sets by highly efficient pumpsets without any financial commitment to BESCOM as follows:
• On 14.02.2014, Mis. EESL has submitted a DPR for Pavagada talukfor replacing 10,673 nos. of IP sets along with terms and conditionsfor its implementation. Mis. EESL, claimed to achieve an energysavings of 31.49% in this project.
• Mis. EESL has been requested to prepare a baseline for one completeyear by recording the consumption data of DTC meter for review andconsideration with EESL and ESCOMs.
(1) Implementation of Mandatory use of Solar Water Heaters:
As a Demand Side Management programme, BESCOM isencouraging installation of Solar Water Heaters. No. of Solar WaterHeating Systems installed during 2014-15 in BESCOM is 72,749.
Energy savings
*Annual Energy savings for 72,749 nos. ofSWH 96.02 MU
. Per day Energy savings for 72,749 nos. ofSWH 0.29MU
* By considering average 2kW for 2 hours per day per SWH for 330 days.
(g)Providing timer switches to the street lights and Smart Energy saverunits:• BESCOM has requested BBMP and other local municipalities to install
timer switches to street lights resulting in energy savings and reducesevening peak hour load on grid. Also requested to provide SmartEnergy Saver Units so as to reduce energy cost of monthly electric billand energy savings in peak hours and to get good impression frompublic.
The status of timer switches provided to street lights in BESCOM area is asfollows:
No. of No. of timer No.of timer Balance no.
S).No. of Str.light timer switches in switches not in of timer
No.Zone ckt. Existing as switches working working switches to
on Mar -15 fixed as on condition as condition as on be fixedMar -15 on Mar -15 Mar -15
1 BlYLAZ 19510 14553 12110 2445 7400
19
-------------------------------------------- - -
238
\ 2 BRAZ 18944 70 411 301 18533
I 3 CTAZ 14198 137 76 61 14122i
I Grand Total 52652 14760 12597 2807 40055
(h) Earth Hour: Earth Hour was observed on 28.03.2015 by switching ofpower supply for one hour between 8.30 pm to 9.30 pm. In the SCADAsystem, it is observed that there was drop in load of around 43 MW duringEarth Hour which works out to be 43,000 units of energy saved.
(i) National Energy Conservation Day: Energy National EnergyConservation day was celebrated on 12thto 14thDecember 2014 throughRadio Jingles vide order no.: BESCOMlBC-9/652/20 14-15/6991-93, dtd:09.12.2014.
(j) Energy Awareness Program:-
Communication Modes Utilized through:a) Advertisements in News papers, Magazines, Souvenir etc.b) Through stalls.c) On Hoardingsd) Jingles in Doordarshan, AIR, Big FM etc.e) Posters, Pamphlets, Brochures, Car Stickers etc.f) Through Customer Interaction Meetings by Section Officers / Sub
Division officers with Grama Panchayath and Zilla Parishat offices.g) Through Interaction meetings at Taluk development 1 District
development meetings.
(k)Time of the Day Tariff:-TOD tariff is made mandatory to all HT installations of 500KVA and
above under HT2 (a) and HT2 (b) tariff w.e.f., 01-09-2012. This is optional inrespect of consumers under LT5 Industrial category (where trivector meter is
fixed).
XII. IMPORTANT PROJECTS UNDERTAKEN:
(A) BANGALORE DISTRIBUTION UPGRADATION (DAS) PROJECT:
BESCOM has taken up a prestigious project to automate the distributionnetwork for monitoring, control and operation of the 11 kV network in theBangalore City by providing suitable control and communication equipmentwhich of course, first of its kind in the entire country. The project has beentaken up during FY 2008-09 and scheduled to be completed within December
2016.
(a) Project details:-
• The cost of the Project is estimated to be Rs. 563 crores.
20
239• The Japan International Cooperation Agency (IlCA) is extending financial
assistance to an extent ofRs.417 crores. (10,643 Million IPY) .• BESCOM has to meet the balance amount of about Rs. 147 Crores.• Mis. KEMA, USA and Mis. CPR!, Bangalore are the Project Management
Consultants.
The main objective of the project is to provide assured quality and reliability ofpower supply by automating the 11 kV distribution network.
(b) Main Objectives:-
• To automate the Distribution network for monitoring, supervisory controland operation of the 11 kV network in the Bangalore City.
• To ensure reliable power supply to consumers.• To minimize loss of time for fault location and restoration due to manual
operation.• To ensure reliable power supply & to effectively arrest the consumer hours
lost because of power supply outages, thereby increasing the energy sales.• Real time control over the costly energy sold.• The scope of works in the project involves replacement of overhead lines
by Aerial Bunched cables, replacement of existing RMU's by DASCompatible RMUs, providing new RMU's, Remote Terminal Units (RTU)with communication facility at all RMU locations.
• Establishing Master Control Center at Corporate level with necessarycommunication, hardware and software.
(c) Benefits OfDAS:
• Real time control over the costly energy sold.• Improved efficiency results in lower costs.• Better reliability in power supply, planned control actions.
The DAS Project implementation is based on the following separate, butinterrelated 7 construction packages:
(d) Physical Progress:-
SI. Package Package Description Progress
No. No.1 Pkg-I Distribution Automation System l. Configuration and Development System
(DAS) Master Stations, demonstration and Communication System
Communication System and (UDl\1BS & DMBS) factory acceptance test
Control Centre Facilities (FAT) completed. C&DS equipment'sinstalled 111 BESCOM Integrated ControlCentre-I. DAS system design completed andsystem FAT is planned in Oct-20IS.
21
2402. Construction of BESCOM Integrated Control
Centre-1 at HSR Layout IS completed.BESCOM Control Centre -2 tender evaluationis in process.
,_, WPC (Wireless Planning and Co-ordination.).
Wing) has issued Decision to grant License(DL) for UHF and Microwave Frequency
allocation.4. Substation model building of GIS data is m
progress5. Construction of Communication tower at
HSR Layout, Tannery Road & Byatraynapuratower are completed.
2 Pkg-II Remote Terminal Units for Installed - 1380,
RMUs ( IIA, lIB & lIC) Field Performance Test on RTUs conducted in
RTUs - 1590 Nos 1264 locations.
3 Pkg-III Sectionalisers & Reclosers (IlIA Erected - LRC- 794 , LBS- 743
& IllB) LRC-795Nos LBS-745 Nos Site Acceptance Test conducted;
~LRC- 130, LBS- 112
4 Pkg-IV New Ring Main Units (IVA, Erection completed
IVB & IVC) Commissioned -787
RMUs - 790 Nos
5 Pkg-V New Ring Main Units in place of Erected - 644
retrofitting (VA &VB) Commissioned - 638
RMUs -800 Nos
6 Pkg-VI Constn. Of Overhead Laying - Coyote-694.6 kms, ABC-254.6 kms
Distribution Lines Commissioned - Coyote-694.6 kms, ABC-249
Coyote cunductor-695 KM kmsABC-500KM
7 Pkg- VII Constn.OfUnderground Laid - 229.629 Kms,Distribution Lines - 230.5 KMs Commissioned - 229.444 kms
(e) Financial Details orDAS project:
Total Expenditure ofDAS
Amount in Crores.
Total Project CostTotal Expenditure for the FY Total Expenditure up to 3l.3.2015
2014-15 from the inception of the project
563.70 50.31 345.32
(B) STRENGHTENING OF THE NETWORK SYSTEM:
(a) The strengthening of the distribution Network is a continuous process.During the year, HT and LT lines as follows were added to the system.
241
Added Added As on 31-03-2015
during during Total added
Particularsyear year during
OH UG Total2014-15 2014-15 year 2014-15OH UG (in KMs)
(KMs) (KMs) (in KMs)
(KMs) (KMs)
HT line 2366.05 748.48 3114.29 81311.38 4945.10 86256.47
LT line 2303.88 381.74 2685.62 159045.74 2140.34 161186.08
(b) The number of Distribution Transformers added during the year and thecumulative number available in the system.
63 to 300 toCompact Sub -
25KV 50/63 160 to StationsParticulars A
100KV 250KVA1000
500 750 990Total
KVA A KVAKVA KVA KVA
Added during10286 2895 2316 1506 326 0 3 7 17339
FY-14-54
Existing inthe system as 87071 51936 47473 20380 4141 22 91 173 211287at the end of31-03-2015
(c) Details of category wise distribution transformer failed during 2014-15
10/15/25 50/63/75/ 100/160 200/250 . 300/400/500 Total0/0
KVA KVA KVA KVA KVA Failure
4516 6622 5392 140 18 16688 7.90
(d) GoK sponsored programmes:-
1) Ganga Kalyana electrified Installations2) Energization of General IP sets3) Regularization of Unauthorized IP sets4) Drinking water supply energized
2560 Nos:1562 Nos.39501 Nos.3296 Nos.
(C) RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND
REFORMS PROGRAMME (R-APDRP):
During 2014-15, lot of IT initiatives were taken up. The details of all theIT initiatives taken up in 2014-15 is detailed below:
242
XIII. MOBILE GOVERNANCE IMPLEMENTATION IN BESCOM:
Government of Karnataka has launched "Mobile Governance Project" (MOne) to deliver all possible government services to citizen over Mobile phone.
All Government Departments were informed to make use of this platformas single window platform for implementing Mobile Governance initiatives.
This Mobile Governance project envisages of enabling all Government andcitizen centric VAS services through various channels such as SMS, NR, USSD,Mobile web and Smart client application. These Mobile channels are used todeliver various categories of services such as Informational services, Paymentservices, Data capture services etc.
In this regard, as per the Government directions BESCOM decided toutilize the Mobile Governance platform to implement some of the services relatedto BESCOM which would be useful for Consumers. 4JThe following are the Services being used by BESCOM from M-One:
(1) Bill Payments can be made in four different modes by Consumers to BESCOM:(2) Mobile web(3) IVRS(4) SMS(5) USSD(6) SMS PUSH service:
Billing related information, interruption details will be pushed to consumers usingthis service.
XIV. I.T. RELATED INITIATIVES:
(a) MIS and Ganga Kalyana web-based application:-
BESCOM has successfully completed the development work of MISand Ganga Kalyana common web-based application (Ganga Kalyana isCommon web-based application which is being used by all ESCOM's andSC/STIBClMinority Corporations).
The data is being entered in the application by all the concerned endusers and the reports are being generated which can be viewed at anyhierarchy level.
This application has reduced the time taken to collect the reportsfrom different offices and also has reduced the consolidation errors.
The Maintenance work of the said two applications for ensuringuptime running of the application is also being monitored.
24
243(b) Appointment of IT Consultancy agency:-
BESCOM is getting increasingly enabled in IT environment and as acause, it is envisaging technology which caters IT enabled services/egovernance initiatives to the customers in each IT initiatives it
implements.In order to augment the IT expertise available at BESCOM in-house
team and to expedite the processes towards achieving objectives ofBESCOM, IT consultancy services are availed from MIS KPMG, which ismainly assigned the job of writing major IT tender RFPs. Following RFPs are written by KPMG and tenders are floated by BESCOM.
S1. Details of Activities under progress/completed by
No. Consultants
1 RFP for IT consultants ofR-APDRP Part A
2 RFP for Alternate connectivity for R-APDRP Part A
3 RFP for AMC for Wireless devices
4 RFP for License procurement for OS, MS office
5 RFP for RAM(Hardware) procurement
6 RFP for AMC for website -- bescom.org
7 RFP for PGRS integration and 2.0
8 TOR for Distribution Transformer Tracking System
9 RFP for Solar Consultant
10 TORs for Load Monitoring and Alert Application
(c) Licensed Software in BESCOM :-As a standard policy enforcement initiative, it was decided by the
Management ofBESCOM to use licensed software in all the computers inBESCOM to avoid hacking of critical utility data.
In the first stage, 300 nos. computers are identified at corporate officefor installation of genuine licensed software and the same is in progress.Similarly all the hardware infrastructure will be covered in the successivestages. Under RAPDRP part-A, all the system being used are underlicensed software from 2010 ..
XIV. R-APDRP PART -A in BESCOM
(a) Focus of the Programme:-The Govt. of India has proposed to continue R-APDRP part-A during
the XI Plan with revised terms and conditions as a Central Sector Scheme.Focus of the programme shall be on:(1) Actual, demonstrable performance in terms of sustained loss
reduction.
25
244(2) Establishment of reliable and automated systems for sustained
collection of accurate base line data.(3) Adoption of Information Technology in the areas of energy
accounting will be essential before taking up the regular distributionstrengthening projects.It is proposed to cover urban areas - towns and cities with population
of more than 30,000 as per the 2001 Census will be covered. Projectsunder the scheme are taken up in two Parts.
);;> Part-A shall include the projects for establishment of baseline dataand IT applications for energy accounting/auditing & IT basedconsumer service centers.
);;> Part-B include distribution strengthening projects.
(b) Board highlights in BESCOM 25 towns on the date of AGM:
);;> 1'v1BC&NC Go-live: 25 towns.);;> Full stack go-live with Energy Audit: 16 towns.);;> Office infra set : 25 towns);;> Primary NSP Link set up : 25 towns);;> Secondary NSP link set up : 24 towns);;> GIS: Under RAPDRP Part-A implementation, GIS based Consumer
Indexing and Network Asset Mapping have been taken up in all theproject areas up to a cutoff date which is different for differentSubdivisions. Inasset mapping, the HT line and LT line with assets ismapped geographically duly giving 11 digits Asset-ill for HT Poles,LT poles, Transformers, RMUs & Feeder-Pillar boxes. In ConsumerIndexing, details of Consumer with meter information etc., are linkedto the respective Source Asset-ill (i.e., Pole-ill and in case of selfexecuted DT it is DT Asset-Id in GIS.
);;> Due to time gap between Survey date, 1'v1BClive and GIS liveoperations of RAPDRP application, there are network assets whichare added in between "GIS Survey" <-> "GIS Live operation",mostly because of RAPDRP Part-B works in 24 non BANGALOREtowns and of DAS works in BANGALORE town which are carriedout after Part-A survey. The data of these assets are not available inGIS and are therefore termed as INCREMENTAL NETWORKASSETS.
In order to achieve accurate Energy Audit results, it is very essential toincorporate these incremental assets into GIS database in RAPDRP applicationand tag the incremental Feeder-wise HT consumers and DT-wise LT consumers totheir associated assets in GIS. BESCOM has awarded the Contract to KarnatakaState Remote Sensing Application Centre (KSRSAC) for Supply of network map
26
245prints and Bangalore town land base map updating for BESCOM under RAPDRPpart A.
(c) Projects Status:
81. Name of the MBCGoPercentage Energy Percentage Date of
No. town Liveof work Audit of work Implementation
completed Live completed ofEA
1 Anekal 1 100% 1 100% 100%
2 Doddaballapura 1 100% 1 100% 100%
3 Hosakote 1 100% - - -
4 CBPura 1 100% - -
5 Chintamani 1 100% - - -
6 Gowribidanur 1 100% 1 100% 100%
7 Shidlazhatta 1 100% 1 100% 100%
8 Channapatna 1 100% 1 100% 100%
9 Kanakapura 1 100% 1 100% 100%
10 Ramanagar 1 100% 1 100% 100%
11 Kolar 1 100% 1 100% 100%
12 Bangarpet 1 100% 1 100% 100%
13 Mulbagil 1 100% 1 100% 100%
14 Robertson- Pet 1 100% - - -
15 Chitradurga 1 100% - - -
16 Challakere 1 100% 1 100% 100%
17 Hiriyur 1 100% 1 100% 100%
18 Davanagere 1 100% - - -
19 Harapannahally 1 100% 1 100% 100%
20 Harihara 1 100% - - -
21 Kunigal 1 100% 1 100% 100%
22 Tumkur 1 100% - - -
23 Sira 1 100% 1 100% 100%
24 Tiptur 1 100% 1 100% 100%
25 Bangalore 1 100% - - -
25 100% 16 64% 64%
(d)Financial progress under R-APDRP PART-A:
TotalLoan Pfc
Total Expenditure Incurred
EscomNo.Of Project
Sanctioned Disbursement FromTowns Cost
(Convertible DetailsFrom Pfc Own Total
To Grant) Funds Funds
BESCOM 25 272.80 252.00 146.65 104.16 *31.47 135.63
* Rs. 31.47crores spent for metering out ofBESCOl\lI funds.
27
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246
(e) Implementation of BESCOM's own official EMAIL domain -bescom.co.in
During 2014-15 BESCOM s owned its own mail domain. As per thestate and central Govt. orders, Govt. departments are barred from usingother private domain for exchanging the information over net like (Gmail,yahoo, rediff, msn etc.,) to safeguard the security of the e - information.BESCOM was using many domains like Gmail to send and receiveinformation over net for official purpose till Oct - 2014. From October2014, BESCOM implemented bescom.co.in domain for emails underRAPDRP part A project.
The summery of the official email IDs which has created for BESCOM officersare as follows:
User Category Total users Active Users
GM/SE and above (1 GB) 41 41DGMlEE/DCA and below (400 ME) 658 656AE/AAO and be1ow(300ME) 539 346
Total 1238 1043
Till date, 1043 officers are using official email IDs to exchange theinformation and daily business transactions. This is one of the major achievementsof BESCOM towards IT initiative and 84.24% of officers are using this domain inthe organization.
XV. R-APDRP PART- B in BESCOM:
Part-B includes regular distribution strengthening projects forreduction of AT & C losses less than15%•
BESCOM is prepared DPRs for 24 towns amounting to Rs. 290.28 crores(sanctioned by Mis. PFC, New Delhi). Tenders were invited in 7 packages(District wise) on Total Turnkey basis as per the directions of SteeringCommittee, MOP and the total amount put to tender is Rs. 243.15 crores.
ILoan
Loan ExpenditureNo. Of Dpr Sanctioned
Released Incurred
UtilityEligible Approved From
From Up To Aug-Towns Cost (Rs. In MIS. Pfc/Goi 2015
(Part-B) Crore) MIS. Pfc/Goi (Rs. In (Rs. In(Rs. In Crore)
Crore) Crore)
BESCOM 24 290.28 72.57 43.542 220.91
28
247
Out of24 towns in BESCOM, 22 towns are completed and the two townsnamely, Chitradurga and Hiriyur the works are short closed and retendered andthe balance work is under process.
XVI. NIRANTHARA JYOTID SCHElVIE:
Bifurcation of Agricultural loads from existing 11 kv feeders:-
BESCOM has taken up Niranthara Jyothi scheme for segregatingagricultural loads from the existing 11 KV feeders, a scheme to provide 24x7uninterrupted power supply to non-agricultural loads in rural areas in 2 phases as
follows:
SI.No. Details I phase II phase
a No. of Taluks covered 19 23
b No. of Villages covered 4691 4607
c Cost inRs. crores 349.66 589.98
d Number of Feeders 271 281
Phase-I: In phase I during FY 11-12 out of 271 feeders 267 feeders arecompleted and 154 feeders are commissioned, during FY 12-13, 83 feeders arecommissioned, during FY 13-14 4 feeders are completed and 34 feeders are
commissioned.phase-II: Out of 281 feeders, during FY 12-13 15 feeders have been
completed and 1 feeder commissioned, during FY 13-14 111 feeders have beencompleted "and76 feeders commissioned, during FY 14-15 135 feeders have beencompleted and 179 feeders commissioned.
XVII. IDGH VOLTAGE DISTRIBUTION SYSTEM (HVDS):
~ HVDS is a technology where the Electricity is Distributed to theconsumers at Higher Voltage Level (llkV) instead of Low Voltagelevel (400V1240V).
~ Normally in the present distribution network, the 11kV HT line goes tothe DTC (Distribution Transformer Centre) and from there lengthy LTLines (400V1240V) are drawn to give supply to different installations.
~ In HVDS System the HT lines are run up to the installation premisesand there it is stepped down through a transformer before giving supplythrough service main.
The Kamataka Electricity Regulatory Commission has issued variousdirectives with a view to reduce high levels of technical and commercial losses inthe distribution system. Implementing High Voltage Distribution System by
29
- - - - ---------------
248replacing the existing LT distribution is one of the important directives issued bythe Commission.
Board has approved the implementation of HVDS scheme in 5 sub divisionsof BESCOM vide Board Resolution No. BESCOMIAS/58th BMl20 12-13/1710-24 dt: 16.03.2013 and 60th board meeting held on 5110/2013.
Sl. No. Name of the sub division No. of Feeders
1 DODDABALLA PURA 31
2 TUMKUR RSD-1 17
3 TUMKUR RSD-2 8
4 CHIKKABALLAPURA 6
5 KENGERI 6
Total 68
Physical & Financial Progress:
No. ofNo. of
Re-feeders Project
feedersdesignated
Revised No. of No. of No. ofExpendit
Sl. Name of the Proposed Cost ofrevised in
feedersProject Feeders Feeders feeders
order to take Cost as Work Work workure
No Sub Division forHVDS LOlin from D.B incurredoriginally Cr.
up one talukpura &
per RC in Comple Commissio underin crores
as pilotKengeri
Cr. ted ned progressproject.
1 Tumkur RSD 1 17 25 8 7 4 18146.25 140.96
2 Tumkur RSD 2 8 23 15 246.01 8 8 15". --
-. Kyathsandra 0 0 5 5 5 U.J - -
4 Chikkaballapura 6 34.8 6 - 74.62 6 6 - 51.7
5 Doddaballapura 31 193.0 9 -22 81.37 9 9 - 80
6 Kengeri 6 34.8 0 -6 0 - - - -
Total 68 408.85 68 0 402 30 27 38 272.66
30
Statement Showing the Amount released for creation of Infrastructure forregularization of unauthorized IP Sets (GO.No. EN 09 PSR 2011 datedl1.03.2011).
Sl. Govt. Order No. Account HeadAmount
No. Date ReleasedRemarks
1 EAN 09 PSR 20114801-01-190-0-09- 35.00 Crores 2011-12
21109.09.2011 (Plan)
2 EAN 67 PSR 20124801-01-190-0-09- 20 .00 Crores 2012-13
21106.09.2012 (Plan)
3 EAN 67 PSR 2012 4801-01-190-09-211 4.00 Crores 2012-13
18.10.2012 (Plan)Total 59.00 Crores
249
XVIII. CONSUMER INITIATIVES TAKEN DURING FINANCIAL YEAR2014-15:
(1) Integrated 24 X 7 Helpline and Public Grievance RedressalSystem:-
(a) To facilitate consumers, BESCOM has established a well-integrated24 X 7 Customer Help Line through the latest technology &software developments along with in-built automatic call transfersystem. Consumers can call on the Customer Help Line Number1912 which has 30 concurrent lines with Multi Channel ComplaintRegistration Facility (Phone, SMS, Online, E-mail & Facebook).There are about 150 Customer Support Executives, 12 TeamLeaders and 4 Team Managers and in charge shift Assistant/JuniorEngineers are functioning in the BESCOM Helpline.
(b) All the consumer complaints are being registered in the Webenabled IPGRS (Public Grievance Redressal System) application.Whenever any consumer registers complaint, they will be providedwith the Docket Number, using which they can track theircomplaint status through Help Line or BESCOM Website. For thespeedy redressal of complaints, BESCOM has established Circlecontrol rooms in all the 9 Circles. In Circle Control Rooms, theexecutives makes follow up of complaints pertaining to their Circletill resolution.
(c) In order to facilitate consumers to register their complaints throughSMS, BESCOM has developed and deployed a SMS ComplaintManagement System. Consumer can send SMS to 58888 to registertheir complaints. Once the SMS is received, consumer getsback the acknowledgment message along with docket number.The application forwards complaint message to the concerned Sub-
31
250Divisional AEE, EE for necessary action. After resolving thecomplaints the concerned field staff will inform the circle controlroom to close the complaint docket. The executives at circle controlrooms confirm with the complainant and then only they will closethe docket.
(d) The well Customized PGRS application generates various MISreports indicating the number of complaints, nature of complaintsreceived, complaints attended, complaint pending and reasons fornot attending the complaints. The PGRS application also includesEscalation Matrix, Technical Dash Board & SMS Gateway Facility.The overall complaint redressal time taken in the month of March-15 is 25mins.
(2) Electrical Safety and Energy Savings Awareness Program:-
a) In order to create awareness on Electrical Safety and Energy Savings,BESCOM has conducted various activities to reach out consumersthrough through TV channels, Radio partners, Theatres andMultiplexes,
b) In order to create awareness among the public on Electrical Safety toavoid electrical accidents and also to create awareness on Energysavings, BESCOM has decided to empanel technically qualified andprofessionally managed NGOs/ Non-Profit Organizations in thisfinancial year.
c) Conducting Programs for school children through "Vidhyuth JagruthiYojane"
(3) Revision of KERC (Electricity Supply) Code, Conditions of Supply ofElectricity of Distribution Licensees (CoS) and allied Regulations:-
As per the directions of Hon'ble Commission a Committee has beenconstituted for the revision of KERC (Electricity Supply) Code, Conditionsof Supply of Electricity of Distribution Licensees (CoS) and alliedRegulations. The commission directed the Committee to examine the needfor Simplification of the existing Supply Regulations/ Codes andrecommend for a simplified set of Regulations for adoption.
In this regard, meetings are being held and the Committee has madenecessary modifications in Conditions of Supply of Electricity ofDistribution Licensees (CoS).
(4) Simplification of forms and procedures involved in BESCOM services:
BESCOM is continuously working towards adoption of opengovernance platform to enlighten the consumers on activities in BESCOMand standard procedures for various works and re-engineering the existing
32
251procedures to enable consumers, less interaction while resolving issues withBESCOM.
In this regard, BESCOM has simplified various Forms which areissued under various regulations of KERC. We have simplified all ServiceForms viz., New Connection, Name Transfer etc., Also prepared newformats for Replacement of burnt out meters, Issue of Service Certificate,Additional load, Surrender of Installation and many other additional Formsto facilitate consumers. The entire application forms are uploaded in theBESCOM Website.
The followings are the various Service forms and notices simplified tofacilitate Consumers:
***
" **************
"
Format-l : New ConnectionFormat-2 : Reclassification of ConsumersFormat-3 : Service CertificateFormat-4 : Requisition for Meter TestingFormat-S : Replacement of Burnt out MetersFormat-o : Notice for Supplemental ClaimsFormat-7 : Final Order on Supplemental ClaimsFormat-8 : Adjustment of Erroneous BillsFormat-9 : Notice for Termination of AgreementFormat-lO : Application for Reduction in LoadFormat-Ll : Application for Surrender ofRR NumberFormat-12 : Requisition for Shifting of InstallationFormat-13 : Transfer of InstallationFormat-14 : Disconnection NoticeFormat-IS: Appeal Before the Appellate AuthorityFormat-16 : Demand Notice for ASDFormat-17 : ECS Limited Mandate Form
(5) Customer Interaction Meeting:-
As per the directions of KERC, BESCOM has started conductingCustomer Interaction Meetings in all the sub divisions every monthregularly from November 2011.
To facilitate all the sub divisional officers and consumers, a schedulehas been prepared for conducting CIM in each sub division on a particulardate and time for the whole year. The schedule was communicated to allthe sub divisions to ensure that the CIM meetings will be held on that day.The clippings of the CIM video will be uploaded in YouTube by theconcerned AEEs. Various circulars and letters have been issued from time
'1'1.J.J
252to time explaining the procedure and the steps to be taken for creatingawareness locally and to make CINImore effective.
To create awareness among the consumers about CIM, pamphletsexplaining the procedure, schedule containing date, time and venue havebeen distributed in all the sub divisions. We have taken all the necessarysteps to make CIM success. In the year 2014-2015, 1356 ConsumerInteraction Meetings (CIM) have been held in all the sub divisions ofBESCOM.
XIX. TRAINING PROGRAMS FOR THE BESCOM PERSONNEL AS PERKERC GUIDELINES:-
BESCOM is conducting continuous training programs to its personnel toeducate them regarding KERC guidelines, duty of licensee, procedures to beadopted in day today work to facilitate our consumers. The purpose of thistraining program is to help our employees to gain the qualifications, knowledgeand skills in a particular subject and also to develop the ability to resolve thedifficulties being faced in day today works.
XX. QUALITY AND SAFETY:-
BESCOM is committed to safety of Public and its personnel. In thisdirection BESCOM has under taken improvements to the DistributionTransformer Centers. The GOS operating handle provided for operation ofDistribution Transformer situated in narrow footpaths is found impending freemovement of pedestrians. Hence, BESCOM has modified the design of 11KV GOS operation. The project cost is Rs. 12.00 crores for 60,000 no's. ofunits. This work was successfully implemented in E8 and C8 sub division on trialbasis for 1000 no's. After successful operation, the scheme is extended toBESCOM area. So far 10,000 no's of 11 KV GOS operating mechanism havebeen modified. This project is targeted to be completed before Ari12016.
In order top provide continuous power supply to agricultural feeders underNJY BESCOM has installed state of art numerical relays to limit the loads duringsingle phase power supply period. So far 450 no's of agricultural feeders havebeen provided with numerical relay protection. The balance 517 nos. under Phase1 and Phase 2 is targeted to be completed before October 2015.
BESCOM is committed to safety of workmen working in the organization.BESCOM has provided maintenance staff with safety hand gloves, safety belts,safety helmets with indicators, ret1ective jackets, etc., to enable the maintenancestaff to perform their duties with confidence.
34
253XXI. INTERNAL AUDIT:
Internal Audit wing in BESCOM is functioning independently under thedirect control of Managing Director, BESCOM. Internal Audit wing at Corporateoffice is headed by the General Manager (IIA). He is assisted by one DeputyGeneral Manager (IIA) and 6 Assistant General Manager (IIA). Issuingclarification/circulars on all the audit related matters, verification of various levelprocurement of materials/services, pre-audit of power purchase bills, concurrentaudit of Project section and audit of establishment & services section are beingconducted. Also persuasion is being made for disposal of AG Paras withconcerned accounting units for early clearance. Besides this, the special audit isconducted in respect of cases referred by the .Corporate, Zones and Circlesregarding cash defalcation. Audit of financial/store irregularities and procedurallapses etc., are also carried out by the Internal Audit wing.
The audit at Divisional/Circle/Zonal level comprises of purchases related ton audit, establishment, store, revenue, cash & expenditure audit. All the activitiesare being carried out as per the norms laid down in the audit manual and circularsissued by the company from time to time. The scope of Internal Audit covers the
following:
(1) Revenue Accounts Audit: Revenue demanded in respect of all installationsis checked in respect of accuracy by billing, classification of tariff and withrespect to other parameters to ensure realization of legitimate revenue due tothe company. Due to shortage of staff, every year the action plan is beingcompleted duly using the services of retired employees and graduateassistants. During the 2014-15 "audit short claim" of Rs. 19.55 crores hasbeen pointed out and Rs. 22.42 crores has been recovered (including the
arrears amount of previous years).(2) Cash Accounts Audit: To ensure proper accounting of cash received from
consumers and remittance to Corporate Office, bank reconciliation statementand cash accounts are being checked for their correctness and irregularitiesor prevent cash defalcation/misappropriation. During the course of the auditif any irregularities/misappropriations are noticed the same is brought to the
knowledge of the management.(3) Expenditure Audit: Expenditure audit is being conducted every month to
ensure all the payments made at Corporate Office, circles and divisions.During the FY 2014-15, the excess payment of Rs. 0.09 crores has beenpointed out and recovered and amount to an extent of Rs. 12.52 crores hasbeen rectified at corporate office. At the divisions and circles excesspayment of Rs, 1.81 crores has been pointed out and 0.98 crores has been'recovered. Similarly Rs. 2.04 crores of 'irregular payments' has beenpointed out and Rs. 1.60 crores has been regularized.
35
254
(4) Store Audit: Store Audit is conducted on quarterly basis. Store auditreports are being, issued to the store officers of the concerned divisions forthe discrepancies noticed i.e., excess materials drawn, differences inaccounting of store transactions, differences in store and pricing ledger etc.It is also instructed to ensure and to report regarding proper implementationof the store final orders issued by the concerned circles every year.
(5) A.G.lCOPU Paras: During the FY 2014-15 no paras has been received in
respect of COPU.(6) Special Audit: During the FY 201-15, totally 6 cases have been received
and audit of the same is under progress. Reports for the completed casehave been submitted to the management for taking further necessary action
as per rules.
XXII. CORPORATE GOVERNANCE:
The Board of BESCOM believes and supports Corporate Governancepractices of a high standard, ensuing observance of these principles in all its CJdealings. All the Directors have taken active part in the proceedings of Board andSub-Cormnittee meetings which added value in the decision making process. Thenon-functional directors receive sitting fees for Board/Sub-Committee meetingsattended by them. Company has complied with various statutory requirementsprescribed under the Companies Act 1956 and 20l3, labour Laws and otherCorporate Laws wherever applicable for the FY 2014-15.
(a) Board of Directors:
The meetings of the Board of Directors are scheduled in advance for whichnotice is given to each Director in writing. The agenda and other relevant notes
are circulated to the Directors in advance.
Following are the Directors ofBESCOM as on the date of AGM:
1 P.Ravi Kumar, LA.S., Chairman
2 Pankaj Kumar Pandey, LA.S., Managing Director
3 Jawaid Akhtar, LA.S., Director
4 Gaurav Gupta, LA.S., Director
5 H.Nagesh Director (Technical)
6 B.L.Guruprasad, I.R.S., Director (Finance)
7 Dipti Aditya Kanade, LA.S., Director
8 T.H.M.Kumar, LA.S., Director
9 K. T.Mahanthappa Director
36
255
10 M.Nagaraju Director
11 A.NJayaraj Director
Hiriyanna K.T. Company Secretary
During 2014-15 and during 2015-16(upto the date of AGM), eight Board meetingstook place as detailed below:
Sl No. Meeting No. Held on
1 64th 11.06.2014
2 65th 21.08.2014
3 66th 20.11.2014
4 67th 18.03.2015
5 68th 16.05.2015
6 69th 25.07.2015
7 69th (Adjourned) 04.08.2015
8 70th 15.09.2015
(b)Board Sub-Committees:-
The Sub-Committees of the Board were constituted to give morefocused attention on important issues.
(1) Central Purchases Committee:-
Central Purchases Committee was formed to consider all cases of" purchases whether for Projects or work award of StationlLine works or any
other works and all matters relating to such purchases as per prevailingdelegation of financial powers. The composition of the Central PurchasesCommittee as on date of AGM is as below:
1 Managing Director, BESCOM Chairman
2 Director (Technical), BESCOM Member
3 Director (Finance), BESCOM Member
4CEE, Tr. Zone, KPTCL MemberBengaluru
5 Company Secretary, BESCOM Convener
37
---------------------------------------- -
256
During 2014-15 and during 2015-16(upto the date of AGM), CPC met on thefollowing dates:
SI. No. Meeting No. Held on
1 74th 06.05.2014
2 75th 04.07.2014
3 76th 18.09.2014
4 77th 06.11.2014
5 78th 28.01.2015
6 79th05.03.2015 &
07.03.2015
7 80th 16.04.2015
8 si- 22.04.2015
9 82nd 13.05.2015
10 83rd 06.07.2015
11 84th 15.07.2015
12 85th 04.08.2015
13 86th 04.09.2015
(2) Borrowing Sub Committee:-The Borrowings Sub-Committee has been delegated certain specific
powers to borrow Long term Loans from Banks/financial institutions onbehalf of the Board from time to times subject to ceiling approved by theShareholder at the General Meeting.
Composition of Borrowings Sub-Committee as on date of AGM is as below:
1 Managing Director, BESCOM Chairman
2 Director (Finance), BESCOM Member
3CEE, Tr. Zone, KPTCL MemberBengaluru
4 Company Secretary, BESCOM Convener
During the year under report (FY 2014-15), the Borrowing Sub-Committeeheld its meetings as below:
SI. For availing Finance fromAmount in Held on
No. crores
1Mis. Rural Electrification Corporation Rs. 250.2553 17.07.2014Ltd.
2M/s. Rural Electrification Corporation Rs.353.3617 17.07.2014Ltd.
38
257Mis. State Bank of Mysore Rs.100 16.03.2015
(3) Audit Committee:-An Audit Committee was formed on 21 st April 2005 in accordance with
the provisions of the Companies Act.
The Composition of the Audit Committee as on date of AGM is as below:
1)
2)
3)4)
~
5)
6)
7)
8)
1 Managing Director, KPTCL(By Name) Chairman
2 Director (Technical), BESCOM Member
3CEE, Tr. Zone, KPTCL MemberBengaluru
4 Company Secretary, BESCOM Convener
Audit Committee considers and recommends the financial results to theBoard. Statutory Auditors & Cost Auditors are invited to attend the meeting.The committee also invites the Chief General Manager (F&C) and General
Manager(II A) to be present at the meeting.
Audit Committee has adequate powers and 'Terms of Reference' to play
an effective role as mentioned in Companies Act which includes:
Discussion with the Auditors periodically about Internal Control Systemand the scope of audit including observations of the Auditors.Review of the Annual Financial statements before submission to the
Board.Ensure compliance of internal control systemsInvestigation into any of the matters as may be referred to by the Board.Financial and Risk Management Policies and Fraud and Fraudulent
Risks.Review of annual capital, revenue and store budgets before being placed
before the Board for approval.Review of programmes of finalization of annual accounts for timely
completion of audit and approval.Review of adequacy of internal controls to review reports on inventory,completion reports of capital works, standard and specifications wherever
applicable.9) Review of Internal Audit paras.10) Review of AG Audit paras.11) Review of disciplinary cases.12) Review of vigilance activities. MRT, TAQC Wings and write offs
13) Review of power purchase cost.
39
-. - - - ------------------
25814) Review of borrowings.15) Discussions with Statutory Auditors and cost Auditors regarding their
reports.16) Any other matters as may be referred to by the Board.During 2014-15 and during 2015-16(upto the date of AGM), the AuditCommittee met four times as below:
Sl. No. Meeting No. Held on
1 24th 18.08.2014
2 25th 12.1l.2014
3 26th 22.12.2014
4 27th 05.06.2015
(4) CSR Committee:As stipulated under section 135 of the Companies Act 2013 every
Company having a net worth of rupees five hundred crores or more, or Vturnover of rupees one thousand crores or more or net profit of rupees fivecrores or more during any financial year shall constitute a Corporate SocialResponsibility Committee of the Board consisting of three or more Directors,out of which at least one director shall be an independent director. Accordingto the said provisions under Companies Act 2013, BESCOM is required toconstitute the CSR Committee since the net worth of BESCOM at the end offinancial year 2014-15 is Rs.l355.51 crores and turnover is Rs.13716.64crores. Board at its 69th meeting held on 25.07.2015 constituted the CSRCommittee with the members comprising the following Directors:
1) Sri. P. Ravi Kumar, IAS.,2) Sri. Pankaj Kumar Pandey, lAS.,3) Sri. Nagesh.H, B.E., FIE.,4) Sri. Guru Prasad. B.L, IRS.,5) Sri. T.H.M.Kumar, IAS.,
: Chairman: Member: Member: Member: Member
The Board of every company referred to in section 135 sub-section( 1), shallensure that the company spends, in every financial year, at least two percent ofthe average net profits of the company made during the three immediatelypreceding financial years, in pursuance of its Corporate Social ResponsibilityPolicy. However, since in the past years except during FY 2013-14 and during FY2014-15, the Company (BESCOIvI) has incurred loss to an extent of Rs.665.31crores and accumulated loss still to be set off to an extent of Rs.475.76 crores ason 3l.03.2015 [Profit during FY 2013-14 and 2014-15 is Rs.76.10 crores andRs.113.44 crores respectively]. In view of this Board of Directors has decided notto recommend for declaration of any dividend for the financial year 2014-15 andthe profit component will be transferred to 'reserve'
40
259
(5) Statutory Auditors:The C & AG of India has appointed Mis. V.K.Niranjan & Co.,
Kurubura sangha Building, 202 and 204 Kanakadasa Circle, Kalidasamarga, Gandhi Nagar, Bengaluru as Statutory Auditors for auditing theaccounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditorshave completed theaudit and have submitted their report as per statutory requirement.
(6) Cost Auditors:The Board of BESCOM has appointed Mis. Rao, Murthy &
Associates, Cost Accountants, No.23/33, Surveyor's Street,Basavanagudi, Bengaluru -560 004 as Cost Auditors for auditing the costaccounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditors have completed theaudit and have submitted their report as per statutory requirement.
(7) Secretarial Auditors:
The Board of BESCOM has appointed Mls.P.K.Pande & Associates,a firm of Company Secretaries, No.139, Shalimar Galaxy, l " Main Road,Sheshadripuram, Bengaluru-560 020 as Secretarial Auditors for auditingthe accounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditors have completed theaudit and have submitted their report as per statutory requirement.
XXIII. DIRECTORS' RESPONSIBILITY STATEMENT:
Pursuant to the requirement under section 134 sub-section (3) of theCompanies Act 2013 with regard to "Directors' Responsibility Statement", it ishereby confirmed that:
(1) In the preparation of the Annual Accounts, the applicable accountingstandards have been followed along with the proper explanation relating tomaterial departures;
(2)Accounting policies have been selected and applied consistently andjudgments and estimates are made that are responsible and prudent so as togive and fair view of the state of affairs of the Company at the end of theFinancial Year and of the profit or loss of the Company for that period;
(3) Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act forsafeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities and
(4) Annual accounts have been prepared on a going concern basis.
41
-------------------------------------------- -
260
GENERAL:
Board would like to place on record its appreciation for all the assistanceand guidance extended by the Government of India, Governrnent of Karnataka,
i
Karnataka Power Transmission Corporation Limited, CERC,KERC, Ministry ofCorporate Affairs, Registrar of Companies, Karnataka and Consumers ofBESCOM for their Co-operation and support to BESCOM in its endeavor to servethe public. Board would also like to place on record its appreciation for thededicated and committed service rendered by the employees of the company andco-operation extended by the Union and Associations.
For & on behalf of the Board of Directors
sd/CHAIRMAN
42
13th Annual Accounts1
J 2014 15)
~ -
BESCOM
Bangalore Electricity SupplyCompany Limited.
262
COMlVIENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
VNDER SECTION 143(6)(b) OF THE COMPNIES ACT, 2013 ON THE
FINANCIAL STATElVIENTS OF BANGALORE ELECTRICITY SUPPLY
COMPANY LIlVlITED, BANGALORE FOR THE YEAR ENDED 31 lVlARCH2015
The preparation of financial statements of Bangalore Electricity Supply
Company Limited, Bangalore for the year ended 31 March 2015 in accordance with
the financial reporting framework prescribed under the Companies Act, 2013 is the
responsibility of the management of the company. The statutory auditor appointed by
the Comptroller and Auditor General of India under section 139(5) 'J[ the Act is
Act based on independent audit in accordance with the standards on auditing prescribed
under section 143(10) of the Act. This is stated to have been done by them vide theirAudit Report dated 18.09.2015.
I, on the behalf of the Comptroller and Auditor General of India, have conducted
a supplementary audit uns!~!.i!~£t_i_Qll_J_43(Qlu!Lofth_~AGLQLthe-.fmanciaLstatements_of .. . _- ._._---- .._----- ...._--_._ -----,- --_. --~------ -------------_ .._---- -
re::;~0nsiblc for expressing 0.P~11~unOIl the financial statements under section 14j of the
BangaJore EI~('trkity ·~~rr.::'!~TC~~P:·lnY Limited, Bangalorc for the year Cil\:lc;J
31 March 2015. This supplementary audit has been carried out independently without
access to the working papers of the statutory auditors and is limited primarily to
inquiries of the statutory auditors and company personnel and a selective examination of
some of the accounting records. In view of the revisions made in the financial
statements by the management, as a result of my audit observations highlighted during
supplementary audit as indicated in the Note No. 30.25 of the financial statements, I
have no further comments to offer upon or supplement to the statutory auditors' report,under section 143(6)(b) of the Act.
For and on the behalf of theComptroller & Auditor Genera] of India
~~
(BIJJT K1T\L~ IYIlJKHERJEE)ACCOUNTANT GENERAL
(ECONOlVllC & REVENUE SECTOR .\1,'1)11".
RclOgaloreDate: 24.09.2015
rrAl <V.!J(. dVbtanJan &c:~ Chartered Accountants
({JOffice 222~~~
222~OTelefax : 2291 0027
~,----------------------~--------------~~H.O. : Kurubara Sangha Building, 202 &. 204, Kanakadasa Circie, Kalidasa Marga,
Gandhinagar, BENGALURU - 560 009. E-mail: [email protected]
Ref. No.:
B-5042.1P/1976112015-16
Date : "
18/09/2015
INDEPENDENT AUDITORS' REPORTTO THE MEMBERS OF BANGALORE ELECTRICITY SUPPLY COMPANYLIMITED
Pursuant to the observations made by Comptroller and Auditor General of India under section143(7) of the companies Act, the accounts approved by the Board of Directors on 15.09.2014have been revised, this report supersedes our earlier report dated 03.08.2015. The report isrevised to incorporate the observations made by the Comptroller and Auditor General of India onthe financial statements and books of account of the company. The impact of the revision in theaccounts of the company is stated in note number 30.25
Report on the Financial Statements;
We have audited the accompanying financial statements of BANGALORE ELECTRICITYSUPPLY COMPAl\ry LIMITED ("the company"),which comprise the Balance Sheet as at 31March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended,and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements;
The Company's Board of Directors and management is responsible for the matters in sectionl34(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position, financial performance and cashflows of the Company in accordance with the accounting principles generally accepted in India,including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 ofthe Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design, implementation and maintenance of internalfinancial control, that were operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement, whether due to fraud orerror.
Branches: 50, Arnaravatni Nagar, Arurnbakkarn CHENNAI - 600 036 t: ;')'H'
# 106 B Ground Floor, Ven981 Pal) t'..laqar, HYOERAB.A.D . ,))0 I.,y_,
TIRUVALL,A f<ERAL,c.),& BENGP.,UJFU
Q/3( dVl'UlJ2jaJl & Cle.Chartered Accountants
264
Auditor's Responsibility;
Our responsibility is to express an opinion on these financial statements based on our audit. Wehave taken into account the provisions of the Act, the accounting and auditing standards andmatters which are required to be included in the audit report under the provisions of the Act andthe Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal financial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by Company's Directors, as well asevaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the financial statements.
Basis for Qualified Opinion
1. Remittances and transfers (rom/to head office: The Company is showing balances of
Rs -28.74 lacs (P. Y. Rs 125.74 lac) under other current assets as remittances-in-transit.
The impact of above stated balance on the financial statement is an understatement of
other current assets and its contra effect is not readily ascertainable.
2. Accrual system: As per section 128(1) of the Companies Act, 2013, proper books of
account shall not be deemed to be kept if such books are not kept 011 accrual basis and
according to the double entry system of accounting. As stated ill Significant accounting
policy no.2, the company recognizes the transactions pertaining to grants and subsidies
from the Government in respect of capital assets on receipt basis, which is contrary to
the accrual system of accounting as essential under section 128(1) of the CompaniesAct, 2013.
<11.9(. dVltai!fan, &~.Chartered Accountants
265
3. Deviations (romAccounting Standards:
a. Accounting Standard 2 in relation to Valuation of Inventory: The Company isrequired to value its inventoriesat lower of cost or net realizable value. However,the company values its inventories at standard rates. The company does notconsider the net realizable value of its inventories. The impact of such deviationfrom the accounting standard is not ascertainable.
b. Accounting standard 6 in relation to Depreciation accounting: The Companyhas charged depreciationasper KERCICERC rules, i.e.for full month in whichassets wereput to use. As per accounting standard 6, the statute governing anenterprise may provide the basis for computation of the depreciation. As percompaniesAct 2013, the depreciationshall be calculatedon aprorate basisfromthe date of such addition. The impact of the above deviationfrom the accountingstandard is not readily ascertainable.
c. Accounting Standard 15 in relation to Employee Benefits: The Company hasprovided provision for retirement benefits as per actuarial valuation made on31.03.2012 and leave encashment on accrual basis is contrary to AccountingStandard - 15 - Employee Benefits, which requires the actuarial valuation to bemade every year. The impact of the above deviation from the accountingstandard is not readilyascertainable.
d. Accounting Standard - 22 in relation to Accounting (or Taxes on Income: TheCompany has not provided for deferred tax asset/liability. The company hasneither provided for deferred tax asset/liabi/ity on account of timing differenceswhich would reverse after the expiry of tax holiday period. The impact of suchnon-provisioning of the timing differences mentioned above on the financialstatement of the company is not ascertainable.
4. Short recognition of interest: Deposit made infixed deposit account no: 64131380598with state bank of Mysore of Rs.3,31,97,211 was renewed on 22.06.2014 with maturitydate 03.09.2015. Interest amount to be recognized in the books from 22106/2014to31103/2015 is Rs. 19,94,788 but actual amount is calculated from 27101/2015to31103/2015and recognized is Rs. 4 51,118 i.e. 64 days instead of 283 days.Thereforeshort recognition of interest of Rs.15, 43,670 leads to understatement of profit for theyear.
5. Depreciation on intangible assets:Depreciationon software and software rights has notbeen charged on opening balance of assets of Rs. 71, 35,689 and on addi~ons madeduring the year of Rs.2, 11, 40,340, as a result there is overstatement~profit andasset.The quantum of over statement is not ascertainable.
<1/3(. ~'UlJljaJ1, & flD.Chartered Accountants
266
6. Rate fluctuation in power purchase during the previous yearsof Rs.248, 35, 92,0791-isrecognized as other incomefor theyear instead of treating it asprior period income.
7. Corporate social responsibility committee has not been constituted as per section135(1) of companies' act 2013.
8. Capital Work in progress: We have observedin many divisionsproper asset register notmaintained for the works completed. For the works completed completion certificatehas not been obtained, hence the work completed has not been capitalized. For e.g.indivisions like Hiriyur, Tumkur, Indira Nagar, Kengeri, KGF, Ramnagar, Madhugirietc.
9. Balance Confirmation:
a. The Company has not obtained confirmation and reconciled the balances as 011
31.03.2015 from/to KPTCL, KPCL, and PCKL, sundry debtors, sundrycreditors, advances, deposits from/to suppliers 1 contractors 1 governmentauthoritieslconsumersl employees, loans and other receivables from variousparties.
10. An Abstract of monetary effect of the above mentioned qualifications (to the extentquantifiable) on thefinancial statements of the company are asfollows:
(Amount in lakhs of Rs)
Category Overstatedl(understated)
A. Net loss (15.43)
B. Current Asset (44.17)
c. Reserve andSurplus Losses as (15.43)
at 3110312015
Opinion
In our opinion and to the best of our information and according to the explanations given to us,the aforesaid financial statements, give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principles generallyaccepted in India;
CV9( dVlumjaJl & Co.Chartered Accountants
267
a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 20 15;b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;
andc) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
Emphasis of Matters
We draw attentionto the following mattersin the Notes to the financial statements: .
a. Note no 30.2.1 regarding certain loans availed by KPTCL transferred to BESCOM and
reflected as loans in the books of the company.
b. Note no. 30.3.5 regarding non provisioning for expenses relating to transfer of titles of
certain assets transferredby KPTCL.
c. Note no. 30.5.2 regarding accounting of excess or shortages found on physical verification of
inventories pending final investigation.
d. Note no. 30.7.1 regarding accounting of contingent liabilities I assets are not ascertained on
contractsremaining to be executed.
e. Note no. 30.8 Regarding Inter Unit Accounts are subject to reconciliation/adjustments to the
extent ofRs.l06.24 crore (Credit),Previous Year Rs. 35.19 crore (Credit).
f. Note no. 30.16 regarding non disclosures of payables to SMEs if any.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued bythe Central Government of India in terms of sub-section (II) of Section 143 of the Act,we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the
Order,to the extent applicable.
2.' Compliance to directions issued by C&A G of India uls 143(5) of companies Act 2013 are
given in the annexure II of the auditors' report.
3. As requiredby section 143(3) of the Act, we reportthat:
a) We have sought and obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purposes of our audit.
b) In our opinion proper books of account as required by law have been kept by the Companyso far as appears from our examination of those books and proper returnS adequate for the
purposes of our audit have been received from the Divisions not visited by us.
'1/9(.dVl'UJJ2jaJl & (j,.Chartered Accountants'
268
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with bythis Report are in agreement with the books of account and the trial balances were received from
the divisions not visited by us.
d) In our opinion, the aforesaid financial statements comply with the Accounting Standards.Specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014 Except for the matter described in the basis for qualified opinion paragraph above.
e) On the basis of written representations received from the directors as on 31 March, 2015,taken on record by the Board of Directors, none of the directors is disqualified as on 31 March,
2015, from being appointed as a director in terms of Section 164(2) of the Act.
1) In our opinion and to the best of our information and according to the explanations given tous, we report as under with respect to the other matters included in the Auditor's Report in
accordance with rule II of Companies (Audit and Auditors) Rules, 2014.
i) There were no pending litigations which would have an impact on the financial
position of the company.
ii) The Company did not have anylong term contracts including derivative contracts for
which there were any material foreseeable losses.
iii). There were no amounts which required to be transferred to the Investor
Education and Protection Fund by the Company.
Place: BENGALURUDated: 18/09/2015
FOR V K NIRANJAN & COChartered AccountantsFirm's Reg. No. 002468S
FCA NIRANJAN V K
PARTNERMNo.021432
269
ANNEXURE I TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of BAN GALOREELECTRICITY SUPPLY COMPANYLIMITED ("the Company") for the year ended31st March 2015,we report that;
i) In respect of Fixed Assets:
Q. The company has maintained records, but particulars like quantity and situation of allthe fixed assets are not maintained. The Company isyet to obtain title deeds/relevantdocuments of certain lands/bui/dingsreflected in the note 10 in relation tofixed assets.
b. As explained to us, the company hasphysically verified itemsfalling under categoryofOffice Equipments, T&P materials (Almairahs, Chairs, and Tables etc.), Computer andPeripherals, Vehicles, Buildings and Civil works at regular intervals. Based on theinformation and explanations given to us by the company, they have not noticed anymaterial discrepancies on such verification as compared with the limited recordsavailable.
However, the company has not conducted a physical verification in respect of plant&machinery and lines & cablesduring the year. Hence we are unable to comment onthe adequacy or otherwise of the regularityof physical verification of such assets.
ii) In respect of its inventories:
a. As explained to us, inventories lying in the stores of the company have beenphysically verified by the management during the year. In our opinion, frequencyof verification is reasonable.
b. In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. The Company is maintaining proper records of inventory situated at company'spremises. As explained to us, there was no material discrepancies noticed onphysical verification of inventories as compared to the book records.However, theminor discrepancies of inventories are accounted for in the books of account(Excess stock of Rs2.46crore and a shortfall of Rs 1.84 crore - net being excessRs. 0.62 crore).
270
iii) The company has no transactions covered under section 189 of the CompaniesAct, 2013. Hence commenting on the entry in the register maintained undersection 189 and its prices being reasonable having regard to prevailing marketprices at the relevant time does not arise.
iv) In our opinion and according to the information and explanations given to us,there are adequate internal control systems commensurate with the size of theCompany and the nature of its business for the purchase of inventories, fixedassets and rendering of services.In our opinion, the existing internal controland internal audit system is ineffective and not commensurate with the sizeof the company and the nature of its business, due to lack of proper InternalAudit, Reports, presentation, periodicity, inadequacy of coverage byinventory.There is no internal control system relating to store maintenance,fixed assets accounting withproper classification details.
v) There is no continuing failure in correcting major weakness in the internalcontrol system.
vi) According to information and explanation given to us, the company has notaccepted any deposits under the provisions of Section 73 to 76 of theCompanies Act, 2013.
vii) Based on the information and explanations provided to us, maintenance of costrecords has been prescribed by the Central Government for the company. Wehave broadly reviewed the books of account maintained by the companypursuant to the Rules made by the Central Government for the maintenance ofcost records under section 148 (1) of the Companies Act 2013 and are of theopinion that prima-facie, the prescribed accounts and records have been madeand maintained.
viii) In respect of statutory dues:
a. According to the records of the Company, undisputed statutory dues includingProvident Fund, Income Tax, Sales Tax, Service Tax, Excise Duty, Cess, andother statutory dues have been regularly deposited with the appropriate authorities.However, there are some short deductionsand delays in remitting the taxdeducted at source to the concernedauthorities.
271
b. According to the information and explanations given to us, the company has notd ited the foll deposite teo owmg statutory ues on account of disputes:
Name of the Nature of the Amount of tax Period to Forum of
Statute dues involved (in which the dispute
crore Rs) amount relates
Income tax Act, Income tax 12.56 AY 2004-05 CIT, Appeals
1961 (I), Bangalore
Income tax Act, Income tax 61.07 AY 2005-06 High Court of
1961 Kamataka
Kamataka Electricity tax 9.63 F Y 2008-09 Chief
Electricity Electrical
(Taxation on Inspector to
Consumption) Government
Act 1959 (CEIG),Bangalore
Income tax Act, Income tax (7.52 c/floss) AY 2009-10 CIT, Appeals
1961(I), Bangalore
Income tax Act, Income Tax 17.52 AY 2010-11 CIT,
1961Appeals(I),Bangalore
a. There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.
ix) The company's accumulated losses at the end of the financial year (withoutgiving effect to the qualifications as stated in our report) does not exceed 50percent of its net worth.The company hasnot incurred cash losses in thefinancial year under audit and in the immediatelypreceding financial year.
x) Based on our audit and according to the information and explanations given tous, we are of the opinion that the Company has not defaulted in repayment of
dues to fmancial institutions or banks.
xi) According to information and explanation given to us, the company has notgiven any guarantee for the loans taken by others from banks or fmancial
institutions.
272
xii) The term loans availed by the company have been applied for the purposes forwhich such loans are availed.
xiii) According to the information and explanations given to us and overallexamination of the balance sheet of the company, we report that no fraud on orby the company has been noticed or reported during the year under audit.
BENGALURU18/09/2015
For V.K Niranjan and Co.Chartered AccountantsFirm's Reg. No. 002468S
~C A Niranjan V K
PartnerMembership NO.021432
rv.9( dVl'U1JljQJl & Cle.Chartered Accountants
273
ANNEXURE II TO THE AUDITORS' REPORTDirections under section 143(5) of Companies Act 2013
Sl. DirectionsNo.1 If the Company has been selected for disinvestment, a complete status report in terms of
valuation of Assets (including intangible assets and land) and Liabilities (includingCommitted and General Reserves) may be examined including the mode and present
stage of disinvestment process.
There is no disinvestment during the year. Valuation of Assets is accounted on
historical Cost on conventional basis. Hence, there is no scope for revaluation.
2 Please report whether there are any cases of waiver/write off of debts/loans/interest etc.,
if yes, the reasons there for and the amount involved.
There are no cases of Waiver I Write off debts I Loansl Interest during FY2014-15
3 Whether proper records are maintained for inventories lying with third parties & assets
received as gift from Govt. or other authorities.
There is a exclusive account code wherein inventory given to third parties is
accounted and controlled by the BESCOM.There are no assets received as gift from Govt. or other authorities.
4 A report on age -wise analysis of pending legal/arbitration cases including the reasonsof pendency and existence/ effectiveness of a monitoring mechanism for expenditure on
all legal cases(foreign and local) may be given.
Information is not provided relating age-wise analysis of pending legal/arbitration
cases including the reasons of pendency existence! effectiveness of a monitoring
mechanism for expenditure on all legal cases(foreign and local).
However Revenue appeals statistics are given below:
Sl. Particulars BMAZ BRAZ CZ TotalNo.
CURRENTYEAR
1 No. of Appeal casespending as on 31-03- 348 83 31 462
2015
2Amount involved (Rs. 2326.76 95.88 39.33 2461.97in Lakhs)
3 PREVIOUS 354 109 30 493
<V!J( cdV£'WLjaJ2 & flo.Chartered Accountants
274
YEAR
No. of Appeal casespending as on 31-03-2014
4Amount involved (Rs.
2383.11 91.69 36.41 2511.21in Lakhs)
Additional Company Specific Directions:
a. Report on the efficacy of the system of billing and collection of revenue in the Company.Whether tamper proof meters have been installed for all consumers? If not then, examinehow accuracy of billing was ensured.
As per codal on distribution of energy issued by KERC, BESCOM is having all theinstallations aremetered except Irrigation Pump sets which is monitored at FeederlDTC levelmetering.Meters are of Electromechanical & electrostaticalnature.
Billing and Collection is tamper proof with identityManagement is put into use wherein eachand every activity concerning Demand and collection is password protected and systemdriven,thereby there is a mechanism of validation of Billing accuracy with respect to ratevalidation,sales validationand relatedissues.
b. Whether the reconciliation of receivables and payables between the generation,distribution and transmission companies has been completed. The reasons for differencemay be examined.
There is a periodical reconciliation on power purchase activity. Reconciliation of InterESCOM receivables and payables i.e., between BESCOM and CESCOM or BESCOM &MESCOM in respect of material and other transfer is not done periodically since impact isminimal, confirmation is pending from other ESCOMS.
c. Whether the Company recovers and accounts, the State Electricity RegulatoryCommission (SERC) approved Fuel and Power Purchase Adjustment Cost (FPPCA)?
KERC has put in quarterly mechanism for arriving at FAC for each quarter based on salesmix and certified by CharteredAccountant asprescribed by KERC.
Q!3(.dVl'UJJ1fan 5- eo.Chartered Accountants
275
d. How much tariff roll back subsidies have been allowed and booked in the accountsduring the year? Whether the same is being reimbursed regularly by the StateGovernment?
There is no roll back of any subsidy (Both revenue and Capital)for Current Year.
e. If the audited entity has computerized its operations or part of it, assess and report, howmuch of the data in the company is in electronic format, which of the area such .asaccounting, sales personnel information, pay roll, inventory etc. have been computerizedand the company has evolved proper security policy for datalsoftwarelhardware?
Presently, all the issues relating to Revenue is computerized up to the level of generation ofMIS report.BESCOM utilizes this corereportfor accounting & recognizing the revenue.
" The other aspects as such payroll, Invento_ry,Capex,Assetisation, Cash Management etc., arenot in the electronic format. Computerization of all these aspects is under process of initialstage.
There is a security policy for data/software/hardwareprotection by exclusive section underIDAM (identity management).
BENGALURU18/09/2015
For V.K Niranjan and Co.Chartered AccountantsFinm~eg.No.002468S»:C A Niranjan V K
PartnerMembership No.021432
276
ADDENDUMTO DIRECTORSREPORTfor the year 31st March 2015
Replies offered on the observation/ comments of the Statutory Auditorson the accounts of the company for the year 2014-15 are as follows
Deviationsfrom AccountingStandards:
Accounting Standard 2 in relation toValuation of Inventory: The Company isrequired to value its inventories at lowerof cost or net realizablevalue. However,the company values its inventories atstandard rates. The company does notconsider the net realizable value of its
1 Remittances and transfers from/ to head Factual - In the course of regularoffice: The company is showing balances transaction, certain remittancesof Rs (-)28.74 lacs (P.Y. Rs 125.74 lac) made during closure period ofunder other current assetsas remittances- Accounts (Last week of Mar) willin-transit. The impact of above stated be transferred to main account bybalance on the financial statement is an concerned Basnk in the first weekunderstatement of other current assets of Apr, thereby those items are
and its contra effect is not readily kept under transit
ascertainable.
2 Accrual system: As per section 128(1) of Factual- Grants and subsidiesthe Companiesact, 2013, proper books of received from the Government in
___ ~KcguntshalLnot be deemed to be ~~Q_t)L_I~spectof c~ital assets is accounted ~ __such books are not kept on accrual basis on _~eq;ipt basis only becauseand according to the doubleentry system company cannot quantify or assesof accounting. As stated in Significant the capital grant /Capital Subsidy foraccounting policy No.2, the company taking into books.recognizes the transactions pertaining togrants and subsidiesfrom the Governmentin respect of capital assets on receiptbasis, which is contrary to the accrualsystem of accounting as essential undersection 128(1) of the Companies Act,
2013.
- ~------.----------
II
3
a:
As per prudent practice, theCompany values its inventory asper Standard rate arrived bytaking present market rate andStandard rates are revisedperiodically on regular basis. Therequired accounting treatment forthe difference in purchase valueand Standard value is dealt in theBooks (Material Cost Variance )
277
inventories. The impact of such deviationfrom the accounting standard is notascertainable.
as per stipulated procedure. Netrealizable value of each itemcannot be arrived due tolargeness of volume of itemsreceipted and issued in the storehouse. The Company is having arobust system of accounting ofdifference of Purchase andStandard rate 1D the books ofaccounts. Hence, implementationof AS 2 may not be possible dueto volume of work involved in dayto day receipt and issue ,which isvery high and also involvesindividual items of the nature ofInsulators, Pot Heads, bolts,Nuts, structural, etc., anyhowCompany will contemplateprocedure for implementation ofAS 2 in FY2015-16.
b Accounting standard 6 in relation to The Company is following theo-epreci atron -,lccoonting-:--Th-e--C()mp-a-rT'1- -rrrethm:t-of----Depreciation---o-n- ----------
has charged depreciation as per monthly prorate basis instead of
KERCjCERCrules, i.e. for full month in date of asset put into use andwhich assets were put to use. As per governed by CERC guidelines foraccounting standard 6, the statute Depreciation prOViSIOn since
governing an enterprise may provide the inception and KERC hasbasis for computation of the depreciation approved the same while.As per Companies Act 2013, the approving the tariff orders
depreciation shall be calculated on a regularly and Company will takeup the issue with CERC forfurther guidelines in this matter.Apart from this, the largeness oftransaction relating toAssetisation is voluminous and inthe absence of automated systemfor calculation of depreciation onprorate basis corresponding toAsset commissioned will be a
daunting task.
prorate basis from the date of suchaddition. The impact of the abovedeviation from the accountingstandard isnot readily ascertainable.
278
c Accounting Standard 15 in relation to The Company has written toEmployee Benefits: The Company has KPTCL & Escoms P&G trust forprovided provision for retirement benefits arrival of Actuarial Valuation withas per actuarial valuation made on regard to employee benefit, The31.03.2012 and Leave encashment on Trust has appointed professional
accrual basis is contrary to Accounting agency for the purpose and the
Standard - 15- Employee Benefits, which Company will provide therequires the actuarial valuation to be employee benefits as per itsmade every year. The impact of the above communication from the next
deviation from the accounting standard is financial year,
not readily ascertainable.
d Accounting Standard -22 in relation to Factual
Accounting for Taxes on Income: TheCompany has not provided for deferred The Company has not recognized
I tax asset/liability. The company has ~ny deferred tax asset/liability asith 'd d f d f d titS mcome is exempt from tax
nel er provi e or e erre ax
t/I' b'l'ty t f ,,- under Section 80IA of the Income
asse la lion accoun 0 timing T A 1961 Th C h.' ax ct, ,e ompany as+_dlffererlces-wnICn-wQuld--rever:se-Elfter--tl:1e----------------.---- ------- -------------------1-------- .. ------
not provided for deferred taxovnin, rtf bv ncndav period Tho rncact of-"t-'oo J ~, -~" '~';~~1 _ •• ~ " -- asset/liability on account of I
such non- provisioning of the timing timing differences that woulddifferences mentioned above on thefinancial statement of the Company is not
ascertainable.
reverse after the tax holidayperiod, However, the Companywill provide for deferred taxsubsequent to its tax holidayperiod, Also, the quantum of suchnon-provisioning for deferred taxis not readily ascertainable andhence not provided in our books
of accounts,
4. Short recognition of interest: Deposit Factual- The necessary correction
made in fixed deposit account no: and corresponding accounting
64131380598 with State Bank of Mysore treatment will be dealt in FY2015-16
of Rs.3,31,97,211 was renewed on
22.06.2014 with maturity date
03.09.2015. Interest amount to berecognized in the books from 22.06.2014
liL__ ~to_3_1_.0_3_.2_0_1_5_is__R_s._l_9~,9_4~,7_8_8_b_ut__ac_tu_a_I~ _j
279
5. Depreciation on intangible assets: Factual- The necessary correction
Depreciation on software and software and corresponding accounting
rights has not been charqed on opening treatment will be dealt in FY 2015-16
balance of assets of Rs. 71,35,689 and on
additions made during the year of Rs. I
2,11,40,340 as a result there is
overstatement of profit and asset. The
quantum of over statement is not
ascertainable.
amount is calculated from 27.01.2015 to
31.03.2015 and recognized is Rs. 4,51,118
i.e. 64 days instead of 283 days. Therefore
short recognition of interest of Rs.
15:43.670 leads to understatement of
profit for the year.
income.
6. Rate fluctuation in power purchase during As per prudence practice any rate
- .... - -I· ··I;'~~!:~i~~ta~e~~~e~Fn~~~~'J!'~~t:~~~~~i~:~:~~~~~~~i~~da~db:a~~~~f-- -instead of treating it as prior period under "Note-24- Purchase of Power"
only as a distinct iter!").
As the power purchase expenditure 1'1
is significant and amounts to more
than 90% of companies tote I Iexpenses, all the transactions
relating to Power purchase is brought
under "Note-24- Purchase of Power"
Apart from this, the crystallization of
rate variations/ fluctuation happens
in the year of accounting only thereby
not accounted under prior period but
treated as other income
\
9 Balance Confirmation: The Company has Transactions pertaining tonot obtained confirmation and reconciled ESCOMS, KPTCL, PCKL are
..- ----- -. + ··----r-th·e·b-arance5··-as-on- 51 :OT2arS--from/tcF rtaken---·to----the---bo-oks-- ··by---the·
I KPTCL, KPCL and PCKL, sundry debtors, Company as a pruclcn i J:-!lw;t.lcc
sundry creditors, advances, deposits based on notifications, orders
from/to suppliers/contractors/government and letters from notifiedauthorities/consumers/employees, loans authorities for the said purposes.and other receivables from various parties. Obtaining of confirmation for all
the transactions involves certainthings that are clearly outside thecontrol of the Company. However,the Company IS makingconsistent effort to obtain the
280
7. Corporate Social responsibility committee
has not been constituted as per section
135(1) of Companies Act 2013.
As stipulated under section 13S(1) of
the Companies Act 2013, Board at its
69th meeting held on 25.07.2015constituted the CSR Committee.
Action will be initiated to avoidsuch delay in getting CompletionCertificate and necessaryinstructions will be issued toadhere for proper maintenance ofAsset Register and categorizationof completed works immediatelyon completion/ commissioning ofthe asset & put into use byobtaining Technical Certificate /Commissioning Report
8 Capital Work in progress: We have
observed in many divisions proper asset
register not maintained for the works
completed. For the works completed
completion certificate has not been
obtained, hence the work completed has
not been capitalized. For e.g. in divisions
like Hiriyur, Tumkur, Indiranagar, Kengeri,
KGF, Ramnagar, Madhugiri etc.
confirmation.As far as confirmation of SundryDebtors is concerned, acceptanceof bills preferred and served asper tariff order in force IS
construed as confirmation.In relation to others i.e sundrycreditors, advances, depositsfrom/ to suppliers / contractors /government authorities /
10 An Abstract of monetary effect of theabove mentioned qualifications ( to theextent quantifiable) on the financialstatements of the company are asfollows:_____----------- ---------------- ----------------- --- -------f---- --~------------ - --------- --- ------ ------- --------~-
(Amount in iakhs uf KS)
281
Overstated/Understated
consumers / employees, loansand other receivables fromvarious parties , transactions aretaken to books based on orders,awards, notification for whichcorrectness IS authenticated,checked and counter checked byall the competent authorities.Also it may not be physicallypossible to obtain theconfirmation for suchtransactions as it involveslargeness in its volume.
It IS the combined effect onobservations of statutory auditorsfor which specific replies provided
as above.
I
Category
A. Net loss (15.43)
B. Current Asset (44.17)
C. Reserve and fir A'"""I'\ :J.'t.::»
Surplus Losses asat 31/03/2015
282
BESCOM
Bangalore Electricity Supply Company Limited
(Wholly owned Government of Karnataka Enterprise)
SIGNIFICANT ACCOUNTING POLICIES
1. Company overview
Bangalore Electricity Supply Company Limited ('BESCOM' or 'the company') is a
company registered under the Companies Act, 1956 incorporated on 30th April, 2002
and commenced its operations from 1st June, 2002. BESCOM is responsible for power
distribution in eight Jistricts of Karnataka (namely Bangalore Urban, Bangalore Rural,
Ramanagara, Chickkaballapura, Kolar, Tumkur, Chitradurga and Davanagere).
The KERC vide letter dated 30th Sep 2008 has intimated that as per first provision of
section 14 of the Electricity Act 2003, BESCOM has become a Deemed Licensee valid for
--- -a- period-o-f-25--years from-l0thJune--2004;------------------------------------- ------- ----
T~1eGo /ernment of Karnataka published vide their order No. DE 14 PSP, 20e '2 dated 31-
05-2002, the 2nd Transfer Scheme called Karnataka Electricity Reform (transfer of
undertakings of KPTCL and its personnel to electricity distribution and retail supply
Companies Rules, 20(;2) giving effect to the approval of distribution undertakings,
assets and liabilities and provisional opening Balance Sheet of KPTCL and BESCOM
based on the Annual Accounts of KPTCL as on 31-03-2001. As per the provisions of 2na
Transfer Scheme, after the stipulated period of one year i.e., by 31-05-2003, the same
became final. Opening Balance Sheet earlier approved and published vide G.O. and
Government notification dated 31-05-2002 read above were provisional and thereafter
Government had approved and issued final opening Balance Sheet of BESCOM as at 01-
06-2002 vide their order No. DE 48 PSR 2003 dated 31-05-2003jNo.DE 48 PSR 2003,
dated 07-10-2004.This has been notified and published as final. The changes effected
after the audit by KPTCL in the "transfer scheme" have been incorporated in the
accounts of the Company as per Annexure - 2 to Government Order NO.DE48 PSR 2003
dated 07-10-2004.
283
2 Basis of preparation
The financial statements are prepared on accrual basis of accounting (except in
cases as stated below) under historical cost convention in accordance with
generally accepted accounting principles in India and the relevant provisions of the
revised Schedule III of Companies Act, 2013 including accounting standards notified
thereunder and also in accordance with the provisions of Electritity (Supply) Act,
1948/ Electricity Act, 2003 where ever they are applicable to the company.
All items having a material bearing on the financial statements are recognized on
accrual basis except the following, which are accounted on receipt basis:
• Grants and subsidies from Government in respect of capital assets
• Insurance claims.
3 Use of estimates
The preparation of financial statements requires estimates and assumptions that
.. affect,tharaported.arnoun t ..at assets.i.lia bilities ,__reyenu e_&_expenses- du ring.the.i..; ---
lepvitilll'!, tJei iuJ. A1LilUugll Sudi esl.imates dUJ assuultJLiullS die IUdJe Ull a
reasonable and prudent basis taking into account all available information, actual
results could differ from these estimates and assumptions and such differences are
recognized in the period in which the results are crystallized.
Accounting estimates could change from period to period. The management
reviews its estimates and assumptions periodically and appropriate changes in
estimates are made as the management becomes aware of the changes in
circumstances surrounding the estimates.
4 Grants and Subsidies
4.1 Grants/subsidies received from the government or other authorities towards
capital expenditure as well as consumers' contribution to capital works are
treated initially as capital reserve and subsequently adjusted as income in
the same proportion as the depreciation written off on the assets acquired
out of the grants.
2844.2 Revenue grants/Tariff subsidies from the government and other agencies
are recognized as income only when there is reasonable assurance that the
conditions attached to them shall be complied with. and the grants will be
received and accounted on accrual basis.
5 Fixed assets and capital work-in-progress
A. TANGIBLE ASSETS
5.1 Fixed assets are carried at cost of acquisition or construction less
accumulated depreciation and impairment loss, if any. All costs, including
finance charges, foreign currency fluctuations till commencement of
commercial production/intended use attributable to fixed assets are
capitalized.
5.2 Expenditure on renovation and modernization of fixed assets resulting in
increased life and/or efficiency of an existing asset is added to the cost of
_ _ related __assets, _ _ ~~ ~ ~ ~_ -------- .. --." ._-- _._ ..
5.3 Released assets are accounted on withdrawal/capitalization at written-down
value (WDV).
B .Intangible assets
5.4 Intangible assets are recorded at the consideration paid/incurred for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
5.5 Impairment of Fixed Assets:
An impairment loss is recognised wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of the
asset's net selling price and value in use.
2855.6. Capital work-in-progress
(a) Materials issued to capital works-in-progress are accounted at cost of
purchase or scheduled standard rates (standard rates are determined
on the basis of previous purchases and prevailing market rates)
(b) Administrative and general overhead expenses attributable to
construction of fixed assets incurred till they are ready for their
intended use are identified and allocated on a systematic basis to the
cost of the related assets.
(c) Contracts at divisions are capitalized only on receipt of final
completion/technical/ commissioning reports.
Cd} The diminution in the value of-dismantled assets (re-usable and released
assets)is ascertained on review and provided for.
6. Foreign currency transactions and translations
... ._.6,L .__Foreign ..C.urr.em:y_1I"mS_(:li:li.Qns.a(ejnitiallY.J_efQ(ded-_aLthe_LaJeS_i2Le_xchange_---- ..- .
6.2 At the balance sheet date, foreign currency monetary items are reported
using the closing rate. Non-monetary items denominated in foreign currency
are reported at the exchange rate ruling at the dare of transaction.
L ')V..J Exchange differences arising
relating to fixed assets/capital work-in-progress to the extent regarded as an
adjustment to interest cost are treated as borrowing cost.
7 Borrowing costs
Borrowing costs relating to acquisition/construction of qualifying assets are
capitalized until the time all substantial activities necessary to prepare the
qualifying assets for their intended use are complete. A qualifying asset is one that
necessarily takes substantial period of time to get ready for its intended use. All
other borrowing costs not eligible for capitalization are charged to revenue.
286
8 Depreciation
8.1 KERC first amended the tariff regulation in respect of depreciation as per
notification No 13/01/2006 dated 31/05/2006.
8,2 Depreciation is charged on straight line method at the rates prescribed and
notified by the Central Electricity Regulatory Commission (CERC). The company
does not charge depreciation as per the rates prescribed under Schedule II of
the Companies Act, 2013.
8.3 Table below Show the rate of Depreciation
~~ per Schedule II of Companies !As per CERC( Notification No. L-
",.+ ,)0""7 /145/160/2008-CERC Dated
~"""" .... ..,.""19/01/2009)
Land & Rights Nil Nil
Buildingsa) Buildings other than Buildings
Factory Buildings 3.17 a) Hydro Electric/ 5.28Stream Electric/Diesel/Dams/Coolingtowers.
~~~-J) ~ --~~----------- _-----_._-- _ _QL_Q_ffi_~~s&_s_l!9~_~Qom~_ -,-----~--.--.------.-- ..-
b Factory Buildings 3.17 3.34 iCivi! works ll:'lpelme, I CIvIl works ll:'lpellne, I
ISewage, Drainage, Water 3.17 Sewage, Drainage, Water I 3.34
supply) supply)
Other Civil Works 3.17 Other Civii Works 5.28
Plant & Machinerya) Used in Generation, Plant & Machinery
Transmission and 2.71 a) Transformers of 100 5.28
Distribution of power KVA above & Below
b) Computers:
I Ii. Servers and networks 15.83 b) Communication 6.33Equipment',
ii. End users devices like 31.67 15.00
desktop, Laptop etc., c) Computers
Lines Cable Networks 2.71 Lines Cable Networks 5.28
Vehicles 11.88 Vehicles9.50
Furniture & Fixtures 9.50 Furniture & Fixtures6.33
Office Equipments 19.00 Office Equipments6.33
Residual value remains at 5% whereas CERCguidelines it is notified as 10%
2878.4 In case there is a revision in the rates prescribed and notified by the CERC, the
company applies the revised rates prospectively from the date of change
notified by the CERC without considering the revised useful life of the assets
concerned.
8.5 Depreciation on leasehold land is amortized over the period of lease.
8.6. The residual value of all the assets is 10 %
8.7 Assets costing Rs 500/- or below individually (as against Rs 5,000/- as per the
Companies Act, 2013) are fully depreciated in the year of acquisition.
8.8 Released assets are depreciated upto the date of dismantling.
8.9 Any addition to the asset base or deletion to the asset base, deprecation is
charged in proportion to month of addition or deletion
8.10 Where the life and/or efficiency of an asset is increased due to renovation and
modernization, the expenditure thereon along with the unamortized depreciable
amount is charged prospectively over the remaining useful life of the asset.
(standard rates are determined on the basis of previous purchases and
prevailing market rates)
10 Investments1(\ 1.l.V.J..
r,~__...............\.....oUtJ CJIL investments are valued at lower of cost and fair market .. ~1"~
val UC:
determined on an individual investment basis.
10.2 Long-term investments are carried at cost. Provision is made for diminution,
other than temporary, in the value of such investments.
28811 Retirement benefits
11.1 Pension & Gratuity are provided based on the revised rates prescribed by
'KPTCL & ESCOMs Pension & Gratuity Trusts' as per Order No. KPTCL
&ESCOMs P&G TRUSTS/KC0123/P7/2011-12/CYS07 dated 27TH May-13
which is based on Actuarial Valuation as on 31-03-2012. The rate of
contribution is 30.00% of basic and D.A. in the case of pension and 6.01 % of
basic in the case of Gratuity with effect from 01/04/2011.
11.2 Leave encashment is provided on the basis of estimates/accrual made by the
company and not on the basis of actuarial valuation.
12 Provision for bad and doubtful debts
12.1 The provision for bad & doubtful debts is maintained at 4% on the balance of
sundry debtors (exclusive of receivables from B}/K} installations and IP
sets) for sale of power of LT category outstanding as at the year-end and on
__. . . . __._.. . _ ___H'l'.consumers __s_pecifLcally:j_d_e_utified__QJ1__acase-ro-case.basis.. .
12.2 The provision for bad and doubtful debts in respect of arrears of IP sets and
B}/K} installations is maintained in the following pattern:
a. Dues outstanding for 2 years and above
b. Dues outstanding between 1 year and 2 years
c. Dues outstanding less than 1 year
75%
50%
Nil
13 Taxes on income
Provision for current tax is made after taking into consideration benefits admissible
under the provisions of the Income tax Act, 1961.
Minimum alternate tax (MAT) is considered as an asset if there is convinci ng
evidence that the company will pay normal income tax. Accordingly, MAl' is
recognized as an asset in the balance sheetwhen it is probable that future economic
benefit associated with it will flow into the company.
28914 Provisions and contingencies
A provision is recognized when the Company has a present obligation as a result of
past events and it is probable that an outflow of resources will be required to settle
the obligation in respect of which a reliable estimate can be made. Provisions
(excluding retirement benefits) are not discounted to their present value and are
determined based on the best estimate required to settle the obligation at the
balance sheet date. Contingent liabilities are disclosed on the basis of judgment of
the management. These are reviewed at each balance sheet date and are adjusted to
reflect the current estimate of the management.
15 Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) before
_____ ___ __ _~_xtr_aQr_djn___ar~-Ltems--and--ta-xj-s-a-dluste-d--fo-Lthe--e_ffe~ts_QLtr_a_nsactia ns __o f non-cash _
nature: and any deferrals cr accruals of past or future Cash receipts cr payments,
Cash comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or less from the
date of acquisition), highly liquid investments that are readily convertible into
known amounts of cash and which are subject to insignificant risk of changes in
.........1",...v cu u c,
16 Revenue recognition
Revenue from Operations:
16.1 Sale of power is accounted on accrual basis at the tariff rates approved by the
Karnataka Electricity Regulatory Commission (KERC). Revenue dues from
consumers whose ledger accounts are yet to be opened are accounted on an
estimated basis.The company accounts/discloses revenues net off electricity
taxesin its statement of profit and loss.
-- ------------------------- -------------
29016.2 Revenue for the year is adjusted by estimating un-billed revenue demandfor sale
of power to HT category on actual basis and a specified % on LT category for
the current year.
Other Incomes:
16.3 Income from services rendered is accounted based on the
agreements/arrangements with the concerned parties.
16.4 Cash discounts on Power Purchases prompt payments are accounted as and
when the related dues are settled.
l~.S Interest income is recognized en a time proportion basis taking into aCCOL~nt
the amount outstanding and rate applicable.
16.6 Revenue grants and subsidies are accounted as stated in para 4.2 above.
17 Leases
_._.__.. . 9_p_~~~ting___L~~sere~~_als__;~re_recog_~~~_9as_~n exE_ens~__iI!__!l!_~_~t~!~~~~~_~ .. _
18 Purchaseof power
18.1 The Power Purchase cost is recognized based on the Government of Karnataka
Order No. EN 131 PSR 2003 Dated 10th May 2005 and subsequent orders issued
from time to time for accounting the cost of power based on the billings made by
Power Generators Pool allocated to BESCOM by the Government of Karnataka.
The Company recognizes the quantum of power exported at the generating
plant as per allocation given by Government of Karnataka as per its latest order
dated 24.03.2010.
18.2 The Transmission cost on power purchase is recognized on the basis of total
generating capacity allocated to BESCOM as per Government of Karnataka order
dated 24.03.2010.
18.3 The Company has recognized the following as interface points for transmission
of pow€r:
29118.3.1 For EHT consumers, consumption recorded at EHT consumer
installations (66KV and above).
18.3.2 Readings recorded at 11 KV banks (interface points) existing ill
various sub-stations.
Itj.4 As per policy decision at the Government and in terms at Power Purchase
Agreement, KERC and CERC tariff order, the related power purchase cost
figures including interest for belated payments, publication charges and income
tax paid are shown on the basis of billing on "Delivered Energy" basis.
18.5 The supply of energy to the Company includes EHT supply at more than 66 KV
voitages at the interconnection points for transfer of power for bilimg by the
Company. The Company does not recognize any transmission loss on EHT
power in its books on purchase from KPTCL.
13.6 The Company accounts the power purchase from 10-6-2005 directly from Power
Generators Pool Account as per the energy allocation/ assignment by the.-~ .--...- ..~-~---- --- - -- ~--.-- ---- -~--._-_--_.-----------.----------~- - ._----_._- .------~---~~- ---
Government of Karnataka as per the Government order No. EN 131 PSR 2003
dated 10-05-2005 and subsequent orders issued from time to time. The rates
followed for the allocated/ assigned power purchases are based on the
commercial rates/ predetermined rates as approved by
PPA/CERC/KERC/Government of Karnataka,
18.7 The Transmission losses arising on account of Power Purchase from Generation
Point till interface point of Transmission are accounted by the Company as per
the information provided by PCKL / SLDC, KPTCL based on the proportionate
energy consumed. This is as per the said Government order.
19 Earnings per share
Basic earnings per share are computed by dividing the net profit after tax by the
weighted average number of equity shares outstanding during the period.
92
1 Shareholders' funds(a) Share capital 5469151000(b) Reserves and surplus 2
(A) Capital Reserve 17118986085(8) Others 15108 00 000(C) Profit/(Loss) -4757651 681
Sub Total (b) 1387 21 34 403
A
2 Non-current liabilities(a) Long-term borrowings 3(b) Deferred tax liabilities (net) 4(c) Other long-term liabilities 5(d) Long-term provisions 6
B3 Current liabilities
(a) Short-term borrowings 7(b) Trade payables 8
ft(c) Other current liabilities 9(d) Short-term provisions 10
C
TOTAL (A+B+C)
B
1 Non-current assets(a) Fixed assets
(i) Tangible assets 11 5057 49 89 101 383241 16703
(ii) Intangible assets 11 48653306 27557336
(iii) Capital work-in-progress 12 14240748981 12862409702
(iv) Intangible assets under development 13(v) Fixed assets held for sale
(b) Non-current investments 14 10 0100 000 1001 00 000
(c) Deferred tax assets (net) 4(d) Long-term loans and advances 15 677 79 71013
(e) Other non-current assets 16A
2 Current assets(a) Current investments 17(b) Inventories 18(c) Trade receivables 19(d) Cash and cash equivalents 20(e) Short-term loans and advances 21
(f) Other current assets 228
jiY't'""CA Niranjan. V.KPartnerM.No: 21432
Place:Date:
4
5
6
7
" 8
910
11
12
LI I L..U
2
Revenue from operationsOther IncomeTOTAL REVENUE
3 ExpensesPurchase of PowerOther operating expensesEmployee BenefitsExpenseOther expensesFinance costsTOTAL EXPENSES
Profits before Depreciation, Prior period items, exceptional items,extraordinary items, Income Tax (1+2-3)
Depreciation
I (Loss) before Prior period items, exceptional and extraordinaryitems and Income Tax (4-5)
Profit I (Loss) before Prior period items, extraordinary items and Tax7)
Prior period Items- {Expenses(+) I Income(-nExtraordinary& Priorperiod items {Expenses(+) I Income(-)}
Profit I (Loss) before Tax (8-9-10)
Income Tax Expense:(a) Current tax expense(b) Less: MAT credit(c) Deferredtax(d) Tax expensesrelatingto prioryears
13 Profit! (Loss) from continuing operations (11-12)
14 Profit I (Loss) from discontinuing operations
15 Profit I (Loss) for the year (13+14)
16 Earnings per equity share of Rs. 10 each.
(1) Basic(2) Diluted
2323A
2425262728
29
30
3132
3477928519
1997851 796
1480076723
228507802 434992916
1251568921 -4741507196
140367373 3067385245300
1391936294
257500000 49500
1134436294 761031
1134436294 761031 342
1.392.07
of Directors
t.~L (~..ky(Managing Director
Place:Date:
SI.No Particulars Current Year 2014-2015
A Cash Flow from Ollerating Activities
Net Profit before Tax 1391936294Adjustments for:Depreciation 1997851 796Financecost 3976620444Extraordinaryitems-TrueupSubsidyChangein Provisionfor Debtors 77481224Changein Provisionfor EmployeeadvancesChangein Provisionfor DismantledAssetsReversalof Depreciationon GrantsAsset (Other Income) ·1105038514Prior period charges(+)or credits(-) ·59261598IncomeTax ·257500000
Operating Profit before working capital changes 6022089646Adjustments for
Changesin Inventories ·456717173Changesin SundryDebtors ·786 93 02 033Changesin Short term Loansand Advances ·84112449Changesin Long term Loansand Advances 533467788Changesin Other CurrentAssets 1412934353Changesin CurrentLiabilities
Trade Payable 4429001602Other current liabilities ·25031 28964
Changesin Short term Provisions 268255800
"Changesin Longterm Provisions 73826724Changesin Other Long-TermLiabilities 4465846726
Operating Profit after working capital changes 6292162020Priorperiodcharges(+)or credits(-) 59261598Extraordinaryitems-Trueup Subsidy
Net Cash inflow from Operating Activities 6351423618
B Cash Flow from Investment Activities
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
CASH FLOW STATEMENTFORTHEYEAR ENDED31ST MARCH 2015
·14269820164·1378339279
Changesin FixedAssets (Net)Changesin CapitalWork in ProgressInvestments
Net Cash Outflow from Investment Activities ·156481 59443
Amount in Rs.2. ~ 4Previous Year 2013-14
81 0531 342
126182552032345436185245300000261105558
9204649·1226509 587
306738538·49500000
9853239638
·654764070·11652129021
-18308920·2511740 235
-81407477
589344391965646763343541588
·2967284452217891653344 95 06 263·306738538
-524 53 00 000·210 25 32 275
·73581 67663-28275 13468
·10185681131
C Cash Flow from Financing Activities
180000000Changesin Capital/ShareDeposit AccountChangesin SecuredLoansChangesin UnsecuredLoansChangesin Longt-Term BorrowingsChangesin Short-TermBorrowingsChangein Currentmaturitiesof long term
debts/CurrentliabilitiesFinancecost
Contributionsfrom Consumers/Reversalof DepreciationonGrantsAsset (Other Income)Other Income
13873 059768011490100
·397 66 20 444
3961217596
355800000
127704 27 756-212 38 54 698
403417940-3234543618
2733428751
10904676132
·1383537274
281 844860614349 11 33214349 11 332
Net Cashavailable from Financing Activities 9563393228
For V.K.Nlranjan & Co.
~Z!?'PartnerM.No:21432Place: Bangalore '"' ...Date f~·, Oq •dULs:'
\ ~ ~!b'h:f~f··:lL'''''~)<(K~!,ann 1 (B.. Guruprasad) (PankajKumarPandey)
~ cretary \ CFO'&'Director(Finance) ManagingDirector
DTh ~~t:e: r~rl~Qqt ~QI ~
266657403D Net Change in Cash and Cash equivalents -Surplus Cash [(Al + (B) +( C))Add: OpeningCashand Cash equivalents 1434911 332
17015687351701568735E Closing Cash and Cash equivalent:
!BUCOM
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 295NOTES TO THE FINANCIAL STATEMENTS
546915100
52.301
546915100Equity shares of Rs.101- each
Equity shares of Rs.101- each
Note 18 -Reconcilation
Note 1C -Percentage of Holding
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDD~BESCOM
296NOTESTO THE FINANCIAL STATEMENTS
BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED6~BEScaM
NOTES TO THE FINANCIAL STATEMENTS
297
Note 3A - Secured Loans
53.500 1141846017
6599954777 6999954777
53.5
Canara Bank 53.500For Rs.400 cr repayment within 13 years (includingmoratorium period of three,years) payble in 40 quarterlyinstalment of Rs. 10 Crore each. Interest to be paid as &when due, ROI for Rs.200 ers base rate + 0.5%pa(floating without spread reset) & ROI for RS.200 crsbase mte + 0.1'Iopa (floating without spread reset).Hypothecation of fixed assets of the company valued atRs.457.62 Crs .Flrst instalment due on 23.09.2013.&For Rs.370 crs Repayment in 40 quarterly installment ofRs.9.25crs each Interest to be paid as when due. ROIfor Rs.370crs base rate +1% presently 11.10% firstinstallment due on 24.01.2017. Hypotecation of Fixedassets of the Company valued at RS.417.09 crs.
3 fl~.,k nf !Ii!'!h'!r'!str'! 53.50(1
For RS.125 Cr The term of repayment in 28 quarter,27quaterly installment of Rs.4.47 Crs per quarter andRS.4.31 Crs in 28th quarter after inotial moratouriumperiod. ROI at B.R+0.10% & for Rs.27 ;.00 ersrepayment of Rs.9.28 crs per quarter &for 28th quarterRs.9.86crs after initial moratoirum period ROI atB.R.+0.10%:Hypotecation of Fixed assets of the Company valuedRs.139 Crs.
4 State Bank of MysoreRepayment within 13 years (including moratoriumperiod of three years) payble in 33 quarterly instalnientof Rs. 3.3 Grore each. at the end of 30 th instalment willbe of RS.3.43 Crs Interest to be paid as & when due.ROI for Rs 100ers base rate + 0.25% pa (fiotingwithout spread reset).
Sub-Total
1000000 000
1179 50 00 794 1205 27 54 771
BANGALOI~E ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
298
8 Term Loans from Others1 Loans from Rural Electrification Corporation
Limited, New Delhi. -APDRP Counter part funding
(Secured by Hypothecation of all existingunencumbered moveable properties includingmachinery, equipments, machinery spares, tools,implements, and accessories installed I created Ier'C'cL~U dllLi dii IUlult: I'lluvt::ab.'C' illduuill~IIldL.ilinCI)" Iequipmetns, machinery spares, tools, implements, andaccessories installed Icreaied Ierected in future and itsstock of materials squipments bought or to he boughtout of Ihe loan amount at 8.5% & 11.70% interest rates.
)
53.3327 220774100 41 7398490
2 PFC - RAPDRP (Part A) 53.347
The tenure of loan will be 10 years from iire date ofdisbursement including moratorium period of 3 years forboth Principal and inter=st. Interest to. be paid asnotified by Ministery of Finance from time to lime.'Secured by way of hypotecation on the newly financedassests under the project as securities for loan. Firstinstaiment due on ·is.ul.ltli~
14664 80 900 1466480900
3 RAPDRP PFC (8)The tenure of loan will be 20 years including moratoriumperiod of 5 years. The interest and interest tax on thesaid loan shall be borne by the Utility and shall begin toaccrue from the date of release of loan by Ministry ofPower .'Secured by way of hypotecation on the newlyfinanced assests under the project as securities forloan. First instalment falls due in the month of July-
2015
53.347
53.347
435420 000
150 95 97 409
41065742
3(a) RAPDRP PFC (8) (Counter part Funding)The loan shall be repaid in 60(SIXTY) equal quaterlyinstallments. The first installments become due on 15th
1
- - - day "i-october 2015 the subsequent installments willbecome due for payment C'l the 15th day of January,15th day of April, 15th day of July, 15th day of OctoberEvery year
4 PFC DRUM PROJECTThe loan shall be repaid by the Disribution Company in40 equal quarterly instalments. The first instalment willbecome due on 15th day of April 2008 Interest on the
.said loan at the rate of interest prevailing on the date of
leach disbursement. 'Secured by way of hypotecalion ofall assets created under the loan.Repayment due :The first Instalment will become
.,'ua on 15th day of April 2008
53.337
5 JICA (Japan International Co-Operative Agency)
The bank agrees 10 lend Ihe company an amount notAxr.eeding YFN 10043000000 ~~ Prinr.ip,,1 for DASunder relavence laws & Regulation of Japan. TheCompany repay prinicipal amount in accordance withamortization schedule setforth in the agreement. TheCompany shall pay the interest semiannuallyat the rateof three- fourth of one percent (0.75%)p.a
6 REC (Tl) NJY Phase 2 53.335Repayment with in 13years (including moratoriumperiod of 3 years) principle installment is payable inequal annual installments and on 15 th of the month inwhich Ihe first disbusement was made.the rate ofinterest @ 11.5 % P A'Secured by way of hypotecation of all assets createdunder the loan.
7 REC (TL) DTC Metering 53.335Repayment with in 13years (including moratoriumperiod of 3 years) principle installment is payable inequal annual installments and on 15 th of the month inwhich the first disbusement was made.the rate ofinterest @ 11.5 % P A'Secured by way of hypotecatiort of all assets createdunder the loan.
53.3402769727679
230 10-fj4 644
1364934209
1974522979
61598619
2609249302
1563319810
1181896020
•~BESeOM
BANGALORE ELECTRICITY 3UPPL Y COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
299
9341 14549
i2BlI 8::. Of btl3
110 6719413
(TL) HVDS 53.335
Repayment with in 13years (includingperiod of 3 years) principle installment is payable iequal annual installments and on 15 th of the month iwhich the first disbusement was made.the rateinterest @ 11 .5 % P A'Secured by way of hypotecation of all assetsunder the loan.REC (TL)UAIP 53.335 748659 01
53.335
Repayment with in 13years (includingof 3 years) principle installment is payable
annual installments and on 15 th of the r"''nththe first disbusement was made.the rate
1960 383(The repayments to be made i 20 annualinstalments together with interest at the rate 12%outstanding balance commencing from 20<)3-:20(14.1~owever, 50% of loans will enjoy 5 year initial graceperiod after which repayment of these loans will beeffected in 15 annual equal instalments.)Repayr.,ent as begun 2003-04
Interest free LoanGovemment of Kamataka has released interestInAn to RFRCOM toward. paymp.nt to power. sIIppli
supply of power to State Grid during 2008-09.Repayment :No terms & Condition given
9409
897787;:2Loan from Government (through REC) - RGGVY(The Total repayment period will be 15 yearsof 5years moratorium period together with interest5% - 12.25% with quarterly interest)
3336 010
Ii~BISCOM
BANGALOREELECTRICITYSUPPLY COMPAi-lYLIMITED 300NotES TO THE FINANCIAL STATEMENTS
Loan from GoK forfor a period of ten yearsspecific Term & Conditions Given However asNo FD 01BLA 2002 dated:10.07.2003 Loan for a 53.3417 2940 4410
53.3367 5410
annum.Repayment begun in 2007-08Term Loan from PFC
(The loan amount is accounted as per the adviseKPTCL and it comprising of various loans withterms and conditions. Interest varies from 10.75% - 11
53.960 181 2800291
Sub-Total
ii) Deposit Works
47.301 to47.303,47.305,
47.307 to47.317,47.321,
47.306
47
47.6
1792090
52856
8551 45
27463460
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED6"-IaBeOM
NOTES TO THE FINANCIAL STATEMENTS
Provision for Employee BenefitsProvision for Gratutiy,Pension,Leave encashment, PF & 44.122,1Family Benefit Fund 0,140
payment of Rs.l00 Crores within one year whithoption to repay instalment also, Monthly interest to
be serviced regularly at BR+.15% presently 10.65%P.A) Repayment due on 07.05.2012
Vljaya Bank'STL for a period of 270days. To be repayed onday of first drawal and interest· to be serviced aswhen debited at 10.45% p.a(fJoting) l.e., base rate ofbank. Securities: Floating charge on Book debts ofCompany with 10% Margin for 150 Crs.
starts on 1310612012
Bank of Mysorefor a period of 1 year and to be closed by theyear from the date of drawal and interest
as and when debited at 10.60% p.a.rate +0.10% .Securities : Floating charge
of the Company with 10% Margin.
Bank of Maharastra 53.000
STL for a period of 1 year to be repaid 12 monthlyinstallment interest to be serviced as and when debitedAt 10.25% p .a. i A. base rate (floating) Ser.uritieflFloating charge on Book debts of the10% MarqinLoan from REC (STL) 53.3357The repayment to be made in 12 monthly equal
together with interest at the rate 12.7!i% iing balance.
8ank 53.5007
53.500
53.500
53.500
24.420
24.409
24.414
24.415
24.428
24.411
5000000
3500000
1000000
1333200
1312500
301
2000000000
1499938176
1250000000
1000000000
49!i9 99 9ge
2500000000
1405355812
1960266718
50301 19192
101 1802797
996726687
Ii~_£SCOM
Sundry Creditors for Purchase of PowerInter ESCOM, Cost of Banked Energy, SLDC& PCKL Revenue ExpenditureCreditors/Liabilities for supplies / works
Payable for other services
---'r"""o-ta"7I--'- - - -
BANGALOREELECTRICITYSUPPLYCOMPANY LIMITED 302NOTES TO THE FINANCIAL STATEMENTS
825867
42.1 to5949551677...... ,. ...... ,.
...4 .... , "T.:...V
46.300+46.301+46.
441 306689928
46.103,410.470,46.
92942.231+4
39423211
8ANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
consumption charges LT & HT 35191214023.181 &23.293
47.607,37.501,502,503,504
Excess credit under reconciliation with Bank
Draught relief fund.IMisclellalnel~us Deposits/Other liabilities
46.10442.282
46.972,6,97746.97846.966,
46.9
28withheld from employees against recoverables
44.21044.22044.31044.32044.330
307000000Provision for Income-Tax & Fringe Benefit Tax 46.800
303
1359961118
2044695075
4,95,00,000
e"IICOM
,i
BANGALOREI ELECTRICITY sa...Y COMPANY LIMITEDI
I
ImTES TO THE FINANCIAL STA fEMENTS!
BANGALOREj ELECTRICITY se LY COMPANY LIMITED
iIWTFS TO THE FINANCIALSTAfEMENTS
Note 11 - Tangible I Intangible Assets
1. Buildingsincludesshared assetsas per KPTCL's intimation2. Addition includesreleasedassetsafter reconditioning3. Deductionincludestransferof assetsfor reconditioning.4. Additions I deletionsof assetsanddepreciation thereon include:
a) Ilems pendingreconciliationrelatingto inter unit transfersandb) Priorperiod adjustments.
UJoen
6"-'BESCOM
BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED 306NOTES TO THE FINANCIAL STATEMENTS
Capital Work in Progress
Provision for works.
Dismantled assets for reuse (valued at WDV)
a) Value of scraped assets
16.2
15.128
14 series
15.500
16.1
b) Value of Faulty and Dismantled assets for reuse
Less: Depreciation
sue-Total
49638241
153544590
11887247301
51 1219217
369157145
20463300~ __ ~~~~~
65281 299
Note 14 • Non-Current Investment>.
A CAPITAL ADVANCES
28.9
28.930
20.251
29.1 to25.5,
27.10626.6
Adw.',ces to Suppliers
Advan·..·JS to Contractors163040424
2438058147
3 Loans a,,~ Advances - Others
27.847.308,309,310,311f-__---'3::.,:1::.4~~=l
a) Security Deposits with Railways and Othersb) Security Deposit from Suppliers & Contractors other
c) Deposit with Jurala Hydro Electric Project 140000
255721124372 33 o~ 958
228881: '~5741413985 6267406224
370564789
503089240
BAN GALORE ELECTRICITYSUPPL(COMPANY LIMITED 307NOTES TO THE FINANCIAL STATEMENTS
Less :Excess IShortageb) Mateterial imprest Account
Other Material Account
- --_ .... ,_._- ---_------------_. --_._----_._---_. __ .._.__ ._...._---_ ..•.._-- '-._.__ .-.----- .._- .._---,.- ...._ .. -
eB~OM
BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
308
3884 58 60 897
I CI Amounts Receivable from GoK towards Free Powerto IP sets uoto 10HP
.Tariff subsidy Receivable from GOK towards BJ/KJinstallation
1. Unbilled Revenue - LT
2. Unbilled Revenue - HT
28.626
23.423.4
23.5
122731 57
28.627
3. Dues from Pennanently disconnected installations
4. Sundry Debtors - miscellaneous receipts from 237
23.8.607,4
for withdrawal of Revenue deman..
1.936,841
On accounts of ,,,nds rec :ivedOn accounts of funds received and adjusted toreceivable from KPTCL
On account of Materials, R"leased Assets, Personneland others (Cash transactions)
receivable from KPTCL
46.106
28.881
42.276,277,278,52.308
& Other F.SCOMS
28.829,834,839,929
2B.B
Receivables-suppliers/Contractors 28.828.1
Tax
340964582
12330561491
35 as 72
350417709
5521607
!aEseoM
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
Cheques, drafts on hand
(i) in current accounts
(a) Operative Accounts with scheduled banks
(b) Non-Operative Accounts with scheduled banks
in deposit accounts'
309NOTES TO THE FINANCIAL STATEMENTS
.130,24.140
4.210
24.40024.300 589698238~ ~
70882538339621 022
91 9580427~. ~
2 14700
Note 21 - Short Term Loans & Advances
•• Deposit is margin money serving as security against LC for Central Govemment Stations (Power Generotors)
28.85028.821
28.821
275494211351 84590
recoverable from ex-employees
for Doubtful of recovery from
Loans and Advances to Staff· Inierest free
28.4
28A02
28.899
27.2
:'.0579
61856
Note 22 -Other Current Assets
Receivables from Pension I Gratuity Trust
Cash Receivables from Associates • KPTCLESCOMSReceivable from GOK refund of meterequipmentsecurity deposit
24.524.6
28.82128.72,28.7428.9
28.9
28.710
Interest accured but not due on deposits (including Bank 28.2& 3Deposits)
Prepaid expensesIPr..Iiminarv expenses to the extent not written off
Unit Accounts- MaterialsCWIP, Fixed Assets, depreciation provision I
and released assetsInter Unit Accounts. - (1993)Personnel
IUA - Other transactions I adjustments
28.820
31
32
36373334
-82723693
24635202
-151464,940128
2349
1192
1587731'81258135r- l~_8~6~8~5~1 1 2574588
737933607
10212735
87321 354
4526439
737933607
9043827
52792397
5319307967
47250707
1025
e••• COl'lllt
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
BJ/KJ Up To 18 Units Metered installationsBJ/KJ Up To 18 Units Un Metered:__ '-".-'" ,_-III~ll;.l"C.n'VII<3
BJ/KJ Above 18 Units having more than oneoutlet
Lighting/combined lighting, heating & motivepower installations BBMP (Urban) - LT 2(a)1i..ighting/combined lighting, heating & motivepower installations (Urban Local Bodis otherthen LT 2(a)i - LT2 (a)iiLighting/combined lighting, heating & motivepower installations (Village Panchayats) - LT2(a}iii
Lighting/combined lighting, heating & motivepower installations (Free Lighting)
Lighting/combined lighting, heating & motivepower instaliations of Pvt.Professionalincluding aided educational institutions underUrban Local Bodies including CityCorporations LT 2 (B)i
Lighting/combined lighting, heating & motivepower installations of Pvt.Professionalincluding aided educational institutions underVPs -L T2(b)ii
Commercial Lighling, heating & motiveinstallations of ULBs including City
1 LT l(a) I
3 LT 1 II
4 LT 2A I
--------_--- L ---I'
Commercial Lighting, heating & motive12 LT 311 installations VPs· LT3 (ii) 61.132 1.21.04.23.229
I Lighting, heating & motive power I13 LT3 FL • Office Lighting 61.133 1,66,30,090
sale of power- commercial-Areas coming under Village
14 LT3(iii) 61.135
and inclusive of 10Hp·
15 T4A .61.141 13,58,79,09,389
61.142 3,34,655
61.143 69,368
61. ~46 :Z~.18061.144 6,00,00,346
IP setsPvt. Hortl, Nurseries, Coffee & TeaPlantations irrespective of sanctioned load-
20 LT 4C LT4( c) 61.145 10,66,03,792
Revenue from sale of power- IP sets· hor.21 Nur. Coffee & Tea above 10Hp· LT 4 C(ii} 61.147 26,76,597
Heating & motive power (including lighting) of22 LT 5A BBMP area upto & below 5HP • LT5(a)i 61.151 56,51,19;295
Heating & motive power (including lighting) ofMetropolitan area for above 5HP
40HP (inclulding demand based23 T 5(a)ii" 61.152 1,73,58,30,620
& motive power (including lighting) ofarea for 40HP & above but below
(inclulding demand based lariff) • LT
NOTES TO THE FINANCIAL STATEMENTS
61.103 23,16,50,788
61.111 24,73,59,34,302
61.112 2,06,67,20,610
61.113 11,02,964
61,1~4 6.43.75.703
61.115 25,32,64,497
61.116 2,97,90,779
31,05,38,974
30,13,33,816
21,54,05,55,828
1,78,50,15,794
6.45,28.300
21,50,10,172
3,28,12,938
84.:\0.65.440
2,37,60,565
7,81,72,45,948
8,56,340
1,26,72,199
1,09,81,150
54,79,69,630
1.56,23,11,447
310
7e,S7C
2,85,326
311BANGALOREELECTRICITYSUPPLY COMPANY LIMITED
NOTES TO THE FtNANCtAL STATEMENTS
Heating & motive power (including lighting)-BBMP area for 67HP & above (inclulding
25 demand based lariff) - LT 5(a)iv 61.154 53,64,79,333 48,96,92,523Heating & motive power (including lighting) ofother than BBMP area upto and below 5HP -
LT 5B LT 5(b)i 61.155 37,19,32,802 31,68,07,760Heating & motive power (including lighting) ofother than BBMP area for above SHP &below 40HP (including demand based tariff )-
27 LT 5(b)ii 61.156 92,67,85,396 93,22,07,738Heating & motive power (including lighting) ofother than BBMP area for above 40HP &below 67HP (including demand based tariff )-
28 LT 5(b)iii 61.157 94,72,05,340 87,46,47,008
Heating & motive power (Including lighting)other than BBMP area for 67HP and above
291 (inclu,ii~g demand based tariff)- LT 5(b)iv 61.158 10,80,20,134 15,06,82,171
61.171 3,59,35,52,605 3,17,72,03,418installations of VPs I TP's and
01.172 2.5.....7..,7£,3....5 2.7 i ,O9,O2,~~7
61.181
& Localbodies/KUWS & SB -Water supplyinstallations -HT 1 61.250
tndustires in BBMP area - HT 2(a)i 61.260
Industires in areas other than BBMP area -HT 2(a)ii 61.261
Revenue from sale of power - Govt, hospitals& Hospitals run by charitable institution,
HT 2C I Educational institution 61.263
Revenue from sale of power - Govt. hospitals---_ .._, -_ ..._._
!, ~T2 S!! :~~:;~ 7~S
HT.2BI 21868590304295203781
37 HT 2B II 1485830614
38 HT3AI 38258365
39 HT 3A II 135190
40 HT 3B 273111161.289 664776
Resldentlat apartments and colonies ofBBMP Area HT 4 (a) 61.290 757713834
Residential apartments and colonies UrbanLocat Bodies other than HT 4 (a) - HT 4 (b) 61.291 25069685
E 1.292 6078112
III
Delayed payment charges from consumers.6 Other Receipts from consumers7 Registration fee towards SRTPV connection (Solar8 Facilitation fee towards SRTPV connection (Solar
61.901 66152
61.902 1030971161.903
61.904 471466126
61.905
61.906 5251 88271
61.907
61.908
e.... COM
312BANGALOREELECTRICITYSUPPLY COMPANYLIMITED
NOTES TO THE FINANCIAL STATEMENTS
Interest· OthersInterest Income:Other non operating income
Profit on sale of stores
RentIncentives received
62.330·79.573
62.901
62.907+62.361+62.911+62.922+92+923+62.361
+62.918
provision made in prior period which is no longer62.325
62.905
62.917
62.916
61.317
61.3
Revenue fromsale of power - HESCOM -Enerqy balancingatIF poitandabove33KV
Revenue fromsale af power- GESCOM -Energybalancingat2 IF pottandabove33KV
Revenue fromsale of power- CESC -Energybalancingat IF
G~.:~:Revenue from Inter Escom exchange of energy charges 11KV - LT
4 HESCOM 61.314Revenue from Inter Escom exchange of energy charges 11KV - L T
GESCOM 61.315
Revenue from Inter Escom exchange of energy charges 11KV - LT6 MESCOM
Revenue from Inler-ESCOM exchange of energy cahrges 11KV &·CESC
61.316
141 2910634 1288769722
14487914103 2702004
468279 26233229667 26692
o C4 78
98273891 90 28905
1 40 87 965
1733041
1314 38 ?4~
1289665313
63 20 ~5 3g~
313BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
67
17527645
2785 059
11739700767 07 700
11370030 10 487
5972814310 5657770463
75.900
stan vveirare expensesCompensation for injuries. dealh and damages SiaffWorl<men compensationPayme' I under workmens compensation ActPayment to helpers/employees of Monsoon ~ang
75.700
79.530
75.629
75.630
6 Employees cost charged 10capital ~"rI<s (Credit Account)
314BANGALOREELECTRICITYSUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
BANGALORE .ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
315
316BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
[Depreciation on other Civil Wor1<s
[Depredation on Plan I and Machinery 77.150+151
[Depreciation on lines, cable, networketc., 77.160+161
[Deprectauon on Vehic'es
[Depreciatior on furniture, fixtures
[Deprecrauor on Office eqc:;pments
6 77.170+171
77.180
77.190+191
1.E: ...ess provision for Depreciation in prior period2. Excess/short provision for Interest & Finance charges
83.500
83.600
83.700
3.0ther excess provision in prior period
B Oebits reloiih'9 to eartler years :
1. Employee costs relating' to previous year
2. Oepr9r::iationunder providedin previous period3.lnterest and other finance charges relating to previous
iii~
317
BI5COM
Bangalore Electricity Supply Company Limited
(Wholly owned Government of Karnataka Enterprise)
Note 30: GENERALNOTES
30.1 Share Capital
30.1.1 Government of Karnataka has disbursed Rs.340.96croreduring the period
from 2009-10 to 2011-12 as detailed below which was held as Share
Deposit till the time it was converted to Share capital in FY2011-12:.
Year Amount (in crore) Reference
2004-05 0.01 GO DE48 PSR 2003/424
dated TS/06/2004
2009-10 32.00 GO EN95 PSR 2008 Dated
01/09/2009
2009-10 118.00 GO EN67 PSR 2009 Dated
01/03/2010
- --ZQ09-1Q-.-- .' . ......._ .......-_ .......Go,.Q{)·_·· .__.._.._.. _- GO-EN-6·7·P-SR-2·009-D-ated-··
31jU3/2010
2010-11 25.00 GOEN 13 PSR2010 Dated
I 22/12/2010
2010-11 63.45 GOEN 13 PSR2010 Dated
30/03/2011
2011-12 22.50 GOEN 20 PSR2011 Dated
I 21/09/2011 (P3 Part I)
2011-12 20.00 GOEN 20 PSR2011 Dated
21/09/2011(P3 Part II)
31830.1.2 Government of Karnataka has disbursed certain amounts towards equity
investment which is kept under Share Deposit which will be converted to ShareCapital on completion of procedure. The details of Share Deposit received as onFY14-15is as under:
-- ----_ ...._--- - _,_. _, _. - .-- .._---._---- -_._--, ..--- -._-- ...._ ....-_-_-----_--- -----.-,._,.
2012-13 37.50 GO EN 30 PSR 2012 Dated
Illnder 20.0016/07/2012
share 40.00 GO EN 22 PSR 2012 Dated
deposit 29/01/2013
Account) 21.58GO EN 17 PSR 2012 Dated
2013-1430/03/2013
2013-14 14.00 GO EN 10 PSR 2013 Dated
ii6/U9/Z013
GO EN PSR 2013 Dated
23/09/2013
2014-15 10.00 GO EN 56 PSR 2014 Dated
27.12.2014
2014-15 8.00 GO EN 56 PSR 2014 Dated-- _._------------------- --_. --- .._ .._ --- ._.._-_ .._--_ .._-_._-_. __ .._----- rOI.03~Oi5--------- ---.- _. -----. __ ._---_ .._-
IIDIal
Ii:>1.08
I
30.2 Loans
30.2.1 Certain secured/unsecured loans received in the earlier years have been
accounted based on the intimations received from the KPTCL.The loans
are not availed in the name of the company, instead a certain portion of
the loans availed by KPTCL from various institutions have been
transferred to BESCOMand arc reflected in the books of the company.
The interests on such loans are also accounted based on intimation by
KPTCLexcept certain loans directly borrowed by the Company.
30.3 Fixed Assets & Depreciation
30.3.1 The fixed assets are accounted vide Government of Karnataka
Notification mentioned in the company overview at cost of assets in
Gross Block and accumulated depreciation on such assets till the date of
transfer and the depreciation has been provided accordingly every year.
31930.3.2 The company does not consider the period of fixed assets utilized by
KPTCL for computing the remaining useful life of the fixed assets
transferred from KPTCL.
30.3.3 The company has not reassessed the revised useful life of the assets
based on the notification of the CERC (Notification no. L-
7/145/160/2008-CERC dt. 19.01.2009) stipulating the revised
depreciation rates. The company charges depreciation based on the
rates notified by the CERCprospectively.
'.)f' "") A rrL. ..... ~-~_-_ .....~.....~__ ......:11 .:..., !......."-t... ............... ,,-.. ..............._ ....c _1-.L. .... z , .... .:~_ "']"''''-_.':1_ .....c ......1_ ....JV.~',"1" I11t:: \"'UIU11ClllY ;)LUI I;) 111 LlIt: 111U\..t::;);) VI VULClllll115 Ut::LClIl;) VI lllt:
_
__ identification, location, situation, description and the extent of transfer
of titles in its favour in respect of movable, immovable and leased assets.
30.3.5 The assets have been recorded as assigned specifically by KPTCL.In case
----_.._of.certatn__bJJiJdings_titLe_d_e_e_ds_Lelattng.J:Q_la_nd _(IncludingLease _HoJd1_. _
related costs that the company may incur with regard to such transfer of
titles are not ascertainable and not provided for by the company
30.3.f Income/expenditure arising out of maintenance cost and payment of
rent in respect of assets (land and buildings)of common use is as per
30.3.7 During the year an amountof R::,.11050 38 514 representing the amount
of depreciation computed on the cost of assets funded through
contribution/ from Consumers is adjusted
51.Particulars 2014-15 particulars 2013-14
No.
..Opening Balance 01-
Provision against permanently 06-2002. (As per1 161.91
disconnected ills~i:illCttiullS Government: cUI- Karnataka order)
(a) On account of 4% (a) On account of 4%
provisioning as per provisioning as per2 106.33 97.58
Accounting Policy - LT Accounting Policy - LT
320
30.45undry Debtors:
30.4.1 The break-up of the provision for bad and doubtful debts as against the
total receivables as on 31-03-2015 is as under:
Rs. in Crore
.category.and.others --------t-categary_and_others______ __ _ _
(1) ?I-uvi:;iull U1I I
account of identified(b) Provision on account of
identified HT -consumers.-3 ------- HT -consumers.-Long ----"_----
disconnected
installations II
On account of arrearsI
973.56 of Bj/KJ and iP set...... - .......... ,... ,':J / o.o o I
installations.I
1241.80 1233.05 I
Long disconnected
installations
On account of arrears of IP set4
installations.
Total
Company has continued the same quantum for long disconnected installations
considered doubtful of realization and Provision for Bad and doubtful debts is provided
accordingly and as per prudent policy.
30.5 Inventories, Stores and Spares
30.5.1 In case of purchase of inventories, if standard rates are adopted, the
differences between the purchase rates and standard rates of materials
321are debited or credited to material cost variance account, which is
charged/ credited to Statement of Profit and Loss at the end of the year.
30.S.2 The Company has accounted separately excesses/shortages found on
physical verification of inventories which is pending final investigation
and adjustments are yet to be carried out by the company.
30.6 Pension, Gratuity and Leave Encashment
30.6.1 Allthe employees of the Company art; on deputation from KPTCL.
---,_- ----------. - .._---_ .._-----------------.-----------------_-------_---------- .._----------------------------------------_---------------------------
30.6.1 As per 'KPTCLand ESCOM'sPension & Gratuity Trusts' Order No.. KPTCL
& ESCOMsP&G TRUSTS/KC0123/P7/2011-12/CYS07 dated 27THMay-
13, provision towards Pension has been calculated at 30.00%of Basic +
DP and D.A.and provision towards gratuity has been calculated at 6.01%
of Basic + DP for FY 2012-13based on actuarial valuation made as at
31.03.2009. However, no actuarial valuation has been made for the year
ended 31.03.2013
30.6.2 In case of leave encashment, the company has estimated the earned leave
encashment of eligible employees and the same has been provided in the
books of accounts.
30.6.3 No actuarial valuation has been made in respect of any employee benefits
for the financial year 2014-15
30.6.4 The amounts provided in respect of Pension, Gratuity and leave
encashment have not been fully funded during the year.
3 0.7 Contingent Liability/Asset
30.7.1 The company is unable to ascertain the estimated amount of contracts
remaining to be executed on capital works due to the large volume of
transactions of the company.
32230.7.2 Income tax demand disputed in appeals is RS.91.15Crs is shown as
under: (Previous year; Rs.91.15Crs)
51 Pending Before Period Amount (InNo Crs)1 CIT,Appeals(I), Bangalore AY 12.56
2U04-0S
2 Tribunal order issued in favor of IT AY 61.07
Department. The company has filed a Writ 2005-06
Petition in the Honble High Court of
Karnataka against the Tribunal Order
3 CIT, Appeals(l), Bangalore for AY ----
Dis-allowance of expenses of Rs. 7.52 Crs. 2009-10
4 CIT,Appeals(I), Bangalore AY 17.52
2010-11
Total 91.15
._--_._._-_ ..-. - -_.- .._- _.__ .._-_ ---_._- ._--_._- _ .._--------------------------------_ .._-----------------_._-- ----._-_._--_._---------._----
::JV./.::J Tile Ldlill! dLe~ VI puvvei .fJ1.nd!d~e~ 1((Jill DTPS 2 dnU RTPS - 8':..': Ulli LVI
KPCL have been provided based on the Power Purchase Agreement
(PPA) which is pending for approval by the KERC.Additional liability, if
any, shall be accounted on final approval from the KERC.
30.7.4 The Tariff of UPCLhas been determined by CERC& issued final Tariff orderon 20.02.2014. However this order has been again disputed beforeAppellate Tribunal for Electricity (ATE). ATE had issued interim order toadmit the bills as per CERC final order from Feb -2013 to Mar .2014 &onwards. The orders for payment from Nov 2010 to June 2013 as per CERCfinal order is still pending. Hence, Rs.197. 76 crore has been accounted forthe period from Feb13 to Mar 14 duly withdrawing the earlier provisions ofRs. 344 crore.
30.7.6 Interest claimed by KPCL on belated payments up to FY 2014-15 is under
dispute and hence not provided for Rs. 700.85 crore (Previous year Rs.
545.12 Crore)
30.7.7 Letter of Credits given in favor of power generators remains same at
Rs.423.31 Crores (Previous year 423.31 Crore]
30.7.8 Interest Claims in respect of UPCL is not provided as final orders from
CERCis disputed before ATE.
323
30.7.9 BESCOMis allowing Moisture corrections upto the permissible ceiling limit
as agreed in PPA & FSA (12% or 15% as per coal coalaries), over and above
the permissible limit is neither admitted nor accounted in the books which
is also having the concurrence of KPC.
3071 () Vieil;:mre r;=lSi"<:;:Jri" r~ndiT1e in respect nf Cll<:tOTDPfSin.<:tClllations in va rio ux
forums and the amount is not ascertainable at this stage.
30.7.11 The Details of zone-wise appeal cases periding as at 31-3-2015 are as
follows:
51.Particulars
No.BMAZ BRAZ CZ Total
CUlu{.t.N 1YEAR
1 No. of Appeal casespending as on 31-03-2015
348 83 31 462
2Amount involved (Rs. in
2326.76 95.88 39.33 2461.97Lakhs)
PREVIOUS YEAR
---~----I--~~~d~:-as ~~~~~~3~2~1~a- ______954_____109 30 493----- ------ 1---- ------------_---_----- ._-------------
4Amount involved (Rs. in
2383.11 91.69 36.41 2511.21Lakhs)
30.7.12 Transmission Charges payable to KPTCL for FY 2006-07 has been
recognized at 19.42 paise per KWH.KPTCL had initially claimed
transmission charges at 26.23 paise per KWH and the company had also
paid the transmission charges at 26.23paise. However, KERC has
challenged the rights of KPTCL to charge any sum exceeding 19.42 paise
towards transmission charges and the matter is pending before the
Hon'ble Supreme Court in an appeal filed by KERCagainst the order of ATE
New Delhi. Currently, the company has accounted such excess sum paid to
KPTCL of Rs125 crore as receivables from KPTCL under other current
assets pending the decision of the Hon'ble Supreme Court in this regard.
30.8 Inter UnitAccounts (IUA)
Inter unit accounts are subject to reconciliation/adjustments to the extent
of Rs. 114.96 crs (Credit), ( Previous year 35.19 crore (Credit). The exact
324
impact distinctively on the Statement of Profit and Loss and Balance Sheet
is not readily ascertainable.
30.9 Free Lighting
Difference between power purchase cost and subsidized rate on free
lighting provided to the employees of KPTCL, including employees on
deputation to BESCOM in the service area of the Company is treated as
expenditure in the books of the Company.
30.10 Electricity consumption of Company'soffices
Self-consumption in respect of company offices are accounted as Revenue
at retail tariff rates and the same is treated as expense, except ,to the
extent of unbilled revenue.
30.11 Rebate for having collected electricity tax from consumers amounting to
_________________________________~ Rs_,-2_,_2.6_CLQLe_Cp_r_e_v_iQ_u_s_y-e_a_LRs_,_2_._(i6__cro_re)_at_Q_,_5_o/Q~wjtb__effect.frcm ----- ---
accounted in Other Non-operating Income, which is to be received from
Government of Karnataka.
30.12 ManagerialRemuneration
Managerial remuneration is included in employee costs and other
expenses and the details are as follows:
II
Forthe year 2014-15 For the year 2013-14
Expenses ManagingDirector
ManagingDirector DirectorDirector
Director (Tech) (Finance) Director (Tech) (Finance)(Rs) (Rs)
Salaries and 468316151426-3 910244
allowances 1113372 1659783 1013112 [Zmonths]
Ex-Gratia 1214 3500 3500 1214 3500 3500
Others (HouseOrderly 261663 266730 265044 181437 245748 120141Allowances 1Medical & Other 412538 237243 61577 122354 32376 248324Allowances
TOTAL 1788787 2167256 1343233 773321 1795887 1282209
325
30.13 Expenditure in foreign currency:
Current year Previous yearFore ign exchange expense s I---'--'-N':'___:_I~L~:":'::_-+-N--"-I--"-L~::"'::_:__:_=_'~:::'=_-I
30.14 Additional Information
Quantitative details of power purchase, distribution loss and sales (as compiled /
certified by the Management):
Details of sale of energy and Distribution Loss for the year 2014-15 (April-14 to
March -15) are as follows:
Distribution Loss Energy in MU
51 No. Particulars Current year Previous year
Total Energy at Interface1 Point ((From 1-04-2014 28261 26786
to 31-03-2015)
2 Total metered sales 18677 17827
3 Total un-metered sales * 5759 5238
----4---- -'FotCl:J.--5-ales-tZ+-3-)----------------2-4-436- --------------2-3-065--,... ~'.,' '1._ " __ 1. _ ,. .... A"'\ 0""\1')""- ..... ,~"'"\A
J Ul:'UlUulllJlllUSS lj_-'-t) .JOL.J ::J1L.j_
6Percentage of 13.53 13.89Distribution Loss (5/1)
- ---
* In respect of Un-metered category of installations, Energy consumed has been
assessed as follows:
• BJ / K] installations: KERC has approved to assess the units consumed by
BJjKJ category of consumers at 18 units /monthj installation.
• IP sets consumption assessment is based on sample readings recorded at
Distribution Transformer Centers taking secondary line loss at 10%.
326
Transmission Loss:nergy In
SlParticulars Current Year Previous year
No.
Total Energy purchasedA at Generation Point r'\E"'\Ar'\'" ")_""""'1'""'11.
(From 1-04-2014 to 31-L.'7'"tL.') L./'J£.O
03-2015)
Total Energy at Interface2 Point ((From 1-04-2014 28261 26786
to 31-03-2015)
3 Transmission Loss (1-2) 1162 1142
I Percentave of - -- - -
E . MU
4 I Transmis""sionLoss (2/1) 3.Y~ I 4.UY I
30.15 Related Party Transactions
There are no transactions during the year with related parties (other than the
transactions between state-controlled enterprises which is under the control of
--- ------ --.---- -------the--eentrcrl-GuvernnTerrt-andjortlreanyState-C overrrrrrenttsrj -----------------------------
30.16 Small and Medium Enterprises
Amount due to Small and Medium Enterprises as required under the Micro, Small
and Medium Enterprises Development Act, 2006 are not ascertained due to lack
of information. The company has not received any confirmation from registered
suppliers as of date, in respect of which disclosures are required to be made
lln,.la,. I'ha ",..,i,.l .1r-t- ThUS the cornnanv has not nrovided for any interest""'-44\...&.'-.4 ......... '- o..J""""'~ '" ........ L. ",1 J \..J. '- '-'-'.1.1.L}'" J. J .lJ...... lL !-",.l V Y '-4'-"\,A,......... ... ..... --- _ .....-
pertaining to sums that may be payable to SMEs,if any.
30.17 Segment Reporting
The company neither has more than one business segment nor more than one
geographical segment, hence segment reporting as required under AS--17 is not
applicable for the company.
327
30.18 Deferred Tax
The company has not recognized any deferred tax asset/liability as its income is
exempt from tax under sec BOlA of the Income Tax Act, 1961. The company
neither provides timing differences that would reverse after the tax holiday
period. However, the company shall provide for deferred tax subsequent to its tax
holiday period. The quantum of such non-provisioning for deferred tax is not
readily ascertainable.
30.19 The revenue from retail consumers are recognized based on KERC Tariff order
2014 dated 12-05-2014 .
.. ._.30.2JL True-u ILTa.rifLS..u.bsi_dy.__ ._.__ .__._..... . .__
A sum of Rs.524.53Cr accounted as income on account of true-up subsidy on
accrual basis yet to be released from the Government of Karnataka towards
additional true up tariff subsidy relating to the FY 13 as per the tariff order of the
KERCdated 12 05 14. (Previous year Rs.524.53 Crs)
30.21 The company has not obtained confirmation of balances as on 31.03.2015 from
other ESCOMS, KPTCL, KPCL, PCKL, sundry debtors, sundry creditors, deposits
from suppliers/contractors/government authorities, etc, advances to
contractors/suppliers, deposits and advances from consumers, loans and
advances to employees (past and current employees), and other receivables from
various parties and are subject to reconciliation/adjustments, if any.
328
30.22 Prior period income
Certain items grouped under prior period items in the previous year which did
not involve an act of error or omission are regrouped under other appropriate
heads.
30.23 Previous year figures have been regrouped /rearranged wherever necessary to
meet the requirement of schedule III of the Companies Act, 2013.
30.24 Earnings per Share
Particulars Current Year Previous Year
Net Profit /Loss after tax ( In Rupees) 1134436294 761031 342
Weighted average no. of equity shares 546915 100 5469 15 100
~asfcTa-rnTngsper-snare-TIri~upeesl-----f--._- ---Z:OT ~-. .~ - -- ••+.
LJ9
Diluted Earnings per Share (In Rupees)
30.25 Pursuant to the observations made by Comptroller & Auditor General of India under
relevant section of the Companies Act, 2013, the accounts approved by the Board of
Directors on 25/07/2015 have been revised. The Accounts are revised to incorporate
the observations made by the Comptroller & Auditor General of India on the financial
statements and books of account of the company. The impact of the revision in the
accounts of the company is stated below.
329
Net impact of revision on the accounts
(Rs. In Lakhs)
SLNo. Particulars Debit Credit
P& LStatement1 Increase in expenditure / Decreasein Income 2051.01
2 Decreasein expenditure/ Increase in Income 38.12
3 Total (1 to 2) 2051.01 38.12
BalanceSheet
4 Net Decrease in profit (1-2) 2012.89
5 Increase in liability 3454.35
6 Decreasein liability 257.84
7 Increase in assets 9698.55
8 Decreasein assets 8514.93
9 Total (4 to 8) 11969.28 11969.28
As per our report even date for & on behalf of the board/company
uprasad.~~· L pa~~pandeyo Director (Finance) Managing Director
Place: Bangalore
Date: 18· CA ,:<o1r
------------------- -- - -
',_,~il'l.
'I,
. I
13th Annual Accounts2014-15
- .__ ..._ -- . __ .. --_ ..._-------,._---- ._---------- _---------
Consolidated Financial Statement
Bangalore Electricity SupplyCompany Limited
331
COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIAUNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THECOMPNIES ACT, 2013 ON THE CONSOLIDATED FINANCIALSTATElVIENTS OF BANGALORE ELECTRICITY SUPPLY COlVIPANY LIMITED,
BANGALORE FOR THE YEAR ENDED 31 MARCH 2015.
The preparation of consolidated financial statements of Bangalore Electricity
Supply Company Limited, Bangalore for the year ended 31 March 2015 in accordance
with the fmancial reporting framework prescribed under the Companies Act, 2013 is the
responsibility of the management of the company. The statutory auditor appointed by
the Comptroller and Auditor General of India under section 139(5) read with section
129(4) of the Act is responsible for expressing opinion on the financial statements under
section 143 read with section 129(4) of the Act based on independent audit in
accordance with the standards on auditing prescribed under section 143(10) of the Act.
This is stated to have been done by them vide their Audit Report dated 18.09.2015.
I, on the behalf of the Comptroller and Auditor General of India, have conducted
a supplementary audit under section 143(6)(a) read with section 129(4) of the Act of the-.._-- ----_- _--_._-----------_ ..
consolidated fmancial statements of Bangalore Electricity Supply Company Limited~~-------
Bangalore for the year ended 31 March 2015. We did not conduct supplementary audit
of the fmancial statements of Power Company of Karnataka Limited, Bangalore for
the year ended on that date. This supplementary audit has been carried out
independently without access to the working papers of the statutory auditors and is
limited primarily to inquiries of the statutory auditors and company personnel and a
selective examination of some of the accounting records.
In view of the revisions made in the financial statements by the management, as
a result of my audit observations highlighted during supplementary audit as indicated in
the Note No. - of consolidated financial statements, I have no further comments to offer
upon or supplement to the statutory auditors' report, under section 143(6)(b) read with
section 129(4) of the Act.
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L-ornptrouer ,~.~-.-xuditor ,--:'",..-,,,-,,: "'e' :_..;'", "Ii\,'~;"U~U~'"'v, U'U,"
~--1
B::\T'\g31nro,
Date: .09.2015
(BI.JJT KUMAR MUKHERJEE)ACCOUNTAi'i"T GE1';-ER~L
(ECONOMIC &~VENUE SECTOR ALinIT)KARNATAK~,BANGALORE
-- -- ----------------------------------
Q/.!J( cM'tanjan 5- Co.Chartered Accountants
Office 2226,.FA92222~2291 0027.Telefax :
---------~-------------.. --~.~~.H.O. : Kurubara Sangha Building, 202 & 204, Kanakadasa Circle, Kalidasa Marga,
Gandhinagar, BENGALURU - 560009. E-mail: [email protected]
Ref. No.:Date : .
B-5042.1PI1976112015-16 18/09/2015
INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANACIALSTATEMENTS
TO THE MEMBERS OF BANGALORE ELECTRICITY SUPPLY COMPANYLIMITED
Pursuant to the observations made by Comptroller and Auditor General of India under section143(7) of the companies Act, the accounts approved by the Board of Directors on 15.09.2014have been revised, this report supersedes our earlier report dated 03.08.2015. The report isrevised to incorporate the observations made by the Comptroller and Auditor General of India onthe financial statements and books of accounts of the company. The impact of the revision in theaccounts of the company is stated in note number 30.25
Report on the Financial Statements;
We have audited the accompanying financial statements of BANGALDRE ELECTRICITYSUPPLY COMPANY LIMITED ("hereinafter referred to as "the Holding Company") and itsassociate PCKL comprising of the Consolidated Balance Sheet as at 31 March 2015. theConsolidated Statement of Profit and Loss, the Consol idated Cash Flow Statement for the yearthen ended, and a summary of significant accounting policies and other explanatoryinformation(hereinafter referred to as "the consolidated financial statements").
Management's Responsibility for the Consolidated Financial Statements;
The Holding Company's Board of Directors and management is responsible for the preparationof these consolidated financial statements in term of the requirements of the companies Act 2013(hereinafter referred as the Act) that give a true and fair view of the Consolidated financialposition, Consol ida ted f nancial performance and Consol idated cash tlows incl ud ing itsassociates in accordance with the accounting principles generally accepted in Ind ia, including theAccounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. The respective board of directors of the companies included group areresponsible for maintenance of adequate accounting records in accordance with the provision orthe Act for safeguarding of the assets of the Company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design, implementation
<1!.!J(. e:Mtanjan. & t!c,.Chartered Accountants
333
and maintenance of adequate internal financial control, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparationand presentation of the financial statements that give a true and fai r view and are free frommaterial misstatement, whether due to fraud or error, which have been used for the purpose 0 fpreparation consolidated financial statements by the directors of the Holding company asaforesaid.
Auditor's Responsibility;
Our responsibility is to express an opinion on these consolidated financial statements based onour audit. While conducting the audit, we have taken into account the provisions of the Act, theaccounting and auditing standards and matters which are required to be included in the auditreport under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the consolidated financialstatements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and thedisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the holding Company'spreparation of the consolidated financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purpose of theexpressing an opinion whether the holding company has an adequate internal financial controlsystem over financial reporting in place and the operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of accounting pol icies used and thereasonableness of the accounting estimates made by holding Company's board of Directors, aswell as evaluating the overall presentation of the consolidatedfinancial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the otherauditors in terms of their reports referred to in sub-paragraph (a) of the other matters paragraphbelow, is sufficient and appropriate to provide a basis for our audit opinion on the consolidatedfinancial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to LIS.
the aforesaid consolidated financial statements, give the information requireci by the Act in themanner so required and give a true and fair view in conformity with the accoLll1til1g_-P.fin~iples
~(r(~~~-------------- -- -
QI.9( dVltanjaJZ &6.Chartered Accountants
334
generally accepted in India of the consolidated state of affairs of the group, its associates as 31.March 2015, and their consolidated profit/lossand their consolidated cash flows for the yearended on that date.
Other matters
a. We did not audit the financial statements of PCKL, whose financial statement 1 financialinformation reflect total assets of Rs.199,88,50,32 1/- as at 3 pt March 20 IS, total revenue ofRs.2,47,27,4 19 and net cash flow amounting to Rs.35,07,28,283/- forthe year ended on thatdate, as considered in the consolidated financial statements. The consolidate financialstatements also include the group's share of net profit of Rs. 52,40,518/- for the year ended31st March 2015, as considered in the consolidated financial statements, in respect of PCKLassociates, whose financial statement I financial information have not been audited by us.These financial statements 1 financial information have been audited by the other auditorswhose reports have furnished to us by the management and our opinion on consolidatedfinancial statement in so for as it relates to the amounts and discourses included in respect ofthese associates, and our report in term of sub section (3) and (II) of section 143 of the act,in so for as it relates to the aforesaid associate, is based solely on the reports of the otherauditors.
Our opinion on the Consolidated financial statements, and our report on the legal andregulatory requirements below, is not modified in respect of the above matters with respectto our reliance on the work done and report of other auditors and financial statements /financial information certified by the management.
Report on other Legal and Regulatory Requirements
I. As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act,based on the comments in the auditors' reports of the Holding company and associatecompany incorporated in India, we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. The associate company's auditor observed that, the associate company has not conducted"Audit Committee" meeting during the year, which violates the provisions of Section177(4) of companies Act 2013.
3. The associate company's auditor observed that, the associate company has not appointed"Independent Director" during the year, which violates the provisions of Section149(4) of companies Act 2013.
Q!.9( tCiVtltanjan & C!o.Chartered Accountants
335
4. The associate company's auditor observed that, the associate company has not issuedseven days prior notice for "Board Meeting" which violates the provisions of Section173(3) of companies Act 2013.
5. The associate company's auditor observed that, the associate company has not appointed"Company Secretary" during the year, which violates the provisions of Section 203 ofcompanies Act 2013.
6. The associate company's auditor observed that, the associate company has notdeducted"TDS on interest" remitted to ESCOM's as per the provisions of Section194(A) ofIncome Tax Act, 1961.
7. As required by section 143(3) of the Act, we report to the extent applicable that:
a) We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit of the aforesaidconsolidated financial statements
b) In our opinion proper books of account as required by law relating to preparationaforesaid consolidated financial statements have been kept so far as it appears from ourexamination of those books and the reports of the other auditors.
c) The reports on the accounts of the associate company incorporated in India, audited undersection 143(8) of the Act by associate company auditors have been sent to L1s/the otherauditors, as applicable and have been properly dealt with in preparing this report.
d) The Consolidated Balance Sheet, the consolidated Statement of Profit and Loss, andConsolidated Cash Flow Statement dealt with by this Report are in agreement with therelevant books of accountmaintained for the purpose of preparation of the consolidatedfinancial statements.
e) In our opinion, the aforesaid consolidated financial statements do comply with theAccounting Standards. Specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014.
f) On the basis of written representations received from the directors of the HoldingCompany as on 31 March, 2015, taken on record by the Board of Directors of theHolding Company and the reports of the other statutory auditors of its associate companyincorporated in [ndia. None of the other directors of its associate company incorporatedin India is disqualified as on 31 March, 2015, from being appointed as a director in termsof Section 164(2) of the Act.
<V!l(. e:NiJf4l2IDJl & eo.Chartered Accountants
336
g) With respect to the other matters to be included in the auditor's report ill accordance withrule 11 of Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best ofour information and according to the explanations given to us.
i) There were no pending litigations which would impact the consolidated financialposition of the group, its associates.
ii) The group and its associatesdid not have any material foreseeable losses 011 longterm contracts including derivative contracts.
iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the holding Company and its associate companyIncorporated in India.
Place: BENGALURUDated: 18/09/2015
FOR V K NIRANJAN & COChartered Accountants
Firm's Reg. No. 002468S
IvCA NIRANJAN V K
PARTNERM No. 021432
rtI.!J(. dVltanjan. & Co.Chartered Accountants
337
ANNEXURE TO THE AUDITORS' REPORT
The Annexure referred to in our report to the members of BANGALOREELECTRICITY SUPPLY COMPANY LIMITED ("the Company") and its associate
company for the year ended 31st March 2015,we report that;
i) In respect of Fixed Assets of Holding company and its associate company:
a. The holding company has maintained records, but particulars like quantity and situationof all the fixed assets are not maintained. The Company is yet to obtain titledeeds/relevant documents of certain lands/buildings reflected in the note lOin relation
to fixed assets.
In case of associate company it has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
b. As explained to us, the company has physically verified items falling under category ofOffice Equipments, T&P materials (Almairahs, Chairs, and Tablesetc.), Computer andPeripherals, Vehicles, Buildings and Civil works at regular intervals. Based on theinformation and explanations given to us by the company, they have not noticed anymaterial discrepancies on such verification as compared with the limited records
available.
However, the company has not conducted a physical verification in respect of plantScmachinery and lines & cables during the year. Hence we are unable to comment onthe adequacy or otherwise of the regularity of physical verification of such assets.
In case of associate company all the fixed assets have been physically verified bythe management in a phased periodical manner which is reasonable having regard
to the size of the company and the nature of its assets.
ii) In respect of inventories of Holding company and its associate company:
a. In respect of Holding company, as explained to us, inventories lying in the storesof the company have been physically verified by the management during the year.In our opinion, frequency of verification is reasonable, whereas in case of AssociateCompany it did not hold inventory during any day of the financial year. ~"
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Q!.9( dV£~0J1. 5- Co.Chartered Accountants
338
b. In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.
c. The holding company is maintaining proper records of inventory situated atcompany's premises. As explained to us, there were no material discrepanciesnoticed on physical verification of inventories as compared to the bookrecords.HoweverJ the minor discrepancies of inventories are accountedfor in thebooks of account (Excess stock of Rs2.46crore and a shortfall of Rs 1.84 crore -net being excess Rs. 0.62 crore).
iii) The Holding company and its associate company have not granted any loans,secured or unsecured to company, firms or other parties covered under section189 of the Company Act, 2013 by the respective company.
iv) In respect of Holding company, in our opinion the existing internal auditsystem is ineffective and not commensurate with the size of the company andthe nature of its business, due to lack of proper Internal Audit Reports,presentation, periodicity, inadequacy of coverage of inventory. There is nointernal control system relating to store maintenance, fixed assets accountingwith proper classification details. Whereas the opinion of other auditors andaccording to the information and explanation given to them, there is anadequate internal control system commensurate with the size of the associatecompany and the nature of its business with regard to purchase of fixed assetsand with regard to the sale of services. During the course of our and the otherauditors audit, no major weakness in such internal control system has beenobserved.
v) According to the information and explanations given to us and the otherauditors, the Holding Company and associate company incorporated in Indiahave not accepted any deposit during the year and accordingly the question ofcomplying with Sections 73 and 76 of the Company Act, 2013 does not arise.
vi) According to the information and explanations given to us and the otherauditors, in our opinion and the opinion of the other auditors, the HoldingCompany and associate company incorporated in India have, prima facie, madeand maintained the prescribed cost records pursuant to the Company (CostRecords and Audit) Rules, 2014, as amended and prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Company Act, 2013.Neither we nor the other auditors have, however, made a detailed examination
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(~::., 22 ~ 69 ~~\
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Q).!J(. t::MtanJatL & flo.Chartered Accountants
339
of the cost records with a view to determine whether they are accurate or
complete.
vii) According to the information and explanations given to us, in respect ofstatutory dues of the Holding Company and associate company incorporated in
India:(a) The respective companies have been regular in depositing undisputedstatutory dues, including Provident Fund, Employees' State Insurance,Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, ExciseDuty, Value Added Tax, Cess and other material statutory dues applicableto the respective company with the appropriate authorities.
(b) As at 31st March, 2015, the following are the particulars of dues onaccount oflncome-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,Excise Duty, Value Added Tax and Cess matters that have not beendeposited on account of any disputes by the Holding company In respect of
statutory dues:
Name of the Nature of the Amount of tax Period to Forum of
Statute dues involved (in which the dispute
crore Rs) amount relates
Income tax Act, Income tax 12.56 AY 2004-05 CIT, Appeals
1961(I), Bangalore
Income tax Act, Income tax 61.07 AY 2005-06 High Court of
1961Karnataka
Karnataka Electricity tax 9.63 F Y 2008-09 Chief
ElectricityElectrical
(Taxation onInspector to
Consumption)Government
Act 1959(CEIG),
-Bangalore
Income tax Act, Income tax (7.52 clf loss) AY 2009-10 CIT, Appeals
1961(1), Bangalore
Income tax Act, Income Tax 17.52 AY2010-11 CIT,
1961Appeals(I),Bangalore
-- -- -- -----------------------
Q/.!J( dVltan;an & Cle.CharteredAccountants
340
viii) The Holding company has accumulated losses at the end of the financial yearand the Group and its associate company have not incurred cash losses on aconsolidated basis during the f1l1ancial year covered by our audit and in the
immediately preceding f1l1ancial year
ix) In our opinion and the opinion of the other auditors and according to theinformation and explanations given to us and to other auditors, the HoldingCompany and associate company incorporated in India have not defaulted inrepayment of dues to financial institutions, banks and debenture holders during
the year
x) In our opinion and the OplOlOn of the other auditors and according to theinformation and explanations given to us and the other auditors, the terms andconditions of the guarantees given by the Holding Company and associatecompany incorporated in India for loans taken by others outside of the Groupand its associate company from banks and financial institutions are not, prima
facie, prejudicial to the interests of the Group and its associate company.
xi) In our opinion and the opinion of the other auditors and according to theinformation and explanations given to us and the other auditors, the term loanshave been applied by the Holding Company and, associate company
incorporated in India during the year for the purposes for which they were
obtained.
xii) To the best of 0ur kno wi edge and according to th e informati on and ex pianati0
nsgiven to us and the other auditors, no fraud by the Holding Company and itsassociate company incorporated in India no significant fraud on the HoldingCompany and associate company incorporated in India has been noticed or
reported during the year.For V K Niranjan and Co.,
Chartered Accountants
Firrn~o. 002468S
C A Niranjan V KPartner
Membership No.021432BENGALURU18/09/2015
341
BEseOM
Bangalore Electricity Supply Company Limited
(Wholly owned Government of Karnataka Enterprise)
CONSOLIDATED SIGNIFICANT ACCOUNTING POLICIES
1. Company overview
Bangalore Electricity Supply Company Limited CBESCOM' or 'the company') is a
company registered under the Companies Act, 1956 incorporated on 30th April, 2002
.. and commenced its operations from !Y June, 2002. BESCOM is responsible for power
distribution in eight districts of Karnataka (namely Bangalore Urban, Bangalore Rural,
Ramanagara, Chickkaballapura, Kolar, Tumkur, Chitradurga and Davanagere).
The KERC vide letter dated 30th Sep 2008 has intimated that as per first provision of
___ __..__~.~c!i_c!_!1_}_,!~.~_~~e_~~~~tr~~i!Y_~.t_..?!? 03_'_?ES.fOl'i_~~~~~?~~_~_!:?~_~Tl2~d_~~c_~~.~_~~.~Cll.!~_!?~... _
::l period of 25 years from 1_0th J11ne 2004.
The Government of Karnataka published vide their order No. DE 14 PSR 2002 dated 31-
05-2002, the 2nd Transfer Scheme called Karnataka Electricity Reform (transfer of
undertakings of KPTCL and its personnel to electricity distribution and retail supply
Companies Rules, 2002) giving effect to the approval of distribution undertakings,
assets and liabilities and provisional opening Balance Sheet of KPTCL and BESCOM
based on the Annual Accounts of KPTCL as on 31-03-2001. As per the provisions of 2nd
Transfer Scheme, after the stipulated period of one year i.e., by 31-05-2003, the same
became final. Opening Balance Sheet earlier approved and published vide G.O. and
Government notification dated 31-05-2002 read above were provisional and thereafter
Government had approved and issued final opening Balance Sheet of BESCOM as at 01-
06-2002 vide their order No. DE 48 PSR 2003 dated 31-05-2003/No.DE 48 PSR 2003,
dated 07 -10-2004.This has been notified and published as final. The changes effected
after the audit by KPTCL in the "transfer scheme" have been incorporated in the
accounts of the Company as per Annexure - 2 to Government Order NO.DE48 PSR 2003
dated 07-10-2004.
342
2 Basis of preparation
The Consolidated financial statements of the BESCOM (Parent) and PCKL
(Associate) are prepared on accrual basis of accounting under historical cost
convention in accordance with generally accepted accounting principles in' India
and the relevant provisions of the revised Schedule III of Companies Act, 2013
including accounting standards notified thereunder and also in accordance with the
provisions of Electricity (Supply) Act, 1948/ Electricity Act, 2003 where ever they
are applicable to the company.
3 Use of estimates
The preparation of Consolidated financial statements requires estimates and
_____ _ assumptions__tha_La_ffu~_t_the_r_eporred.amounr.ntassets, .Jiabili tLe_S,_Le_'ienu.e__& _
expenses during the reporting period. Although such estimates and assumptions
are made on a reasonable and prudent basis taking into account all available
information, actual results could differ from these estimates and assumptions and
such differences are recognized in the period in which the results are crystallized.
Accounting estimates could change from period to period. The management
reviews its estimates and assumptions periodically and appropriate changes in
estimates are made as the management becomes aware of the changes in
circumstances surrounding the estimates.
3.1 Consolidation procedure
CFSof the group comprising one associate have been prepared on the basis of
(a) Audited Accounts of BESCOM (Parent)
(b) Long investment in associates are accounted for under the Equity Method
as per Accounting Standard (AS -23 - Accounting for Investment in Associates in
Consolidated Financial Statement). The Investors share of results of operation of
the Associates is reflected separately in consolidated Profit & Loss Account.
343
4 Fixed assets and capital work-in-progress
A. TANGIBLE ASSETS
4.1 Fixed assets are carried at cost of acquisition or construction less
accumulated depreciation and impairment loss, if any. All costs, including
finance charges, foreign currency fluctuations till commencement of
commercial production/intended use attributable to fixed assets are
capitalized.
Expenditure on renovation and modernization of fixed assets resulting in
increased life and/or efficiency of an existing asset is added to the cost of
related assets.
4.3 Released assets are accounted on withdrawal/capitalization at written-down
..._._._._. .__._._._.__ _._._.__._yalll.e_(W.D !l}.- ---.__..--.-..-.-_._-..- --- - -.- ---.----..-..- -_ -..--_.-..- -. .--..--.---.- - -.- -- --.-
B .Intangible assets
4.4 Intangible assets are recorded at the consideration paid/incurred for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
4.5 Impairment of Fixed Assets;
An impairment loss is recognised wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is greater of the
asset's net selling price and value in use.
344
5. Cash flow statement
Cash flows are reported using the indirect method, whereby profit / (loss) -before
extraordinary items and tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or payments.
Cash comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or less from the
date of acquisition), highly liquid investments that are readily convertible into
known" amounts of cash and which are subject to insignificant risk of changes ill
value.
6. Revenue recognition
Revenue from Operations:
--_ ..__ .-- -_._. - .- -- ..._._ .._-- -_.- ,._--,-_._, .._----_._-_._........ -_.__ .._-_. _-----_._--_. ,._-------_._---._----_. ----_--_-_"_._-_.--_- __ ._--_.,.._--- ..---.-_---------------- .__ .,-------- -- ----
6.1 Sale of power is accounted vii.accrual basis at the tariff rates approved by' the
Karnataka Electricity Regulatory Commission (KERC). Revenue dues from
consumers whose ledger accounts are yet to be opened are accounted on an
estimated basis. The company accounts/discloses revenues net off electricity
taxes in its statement of profit and loss.
6.2 Revenue for the year is adjusted by estimating un-billed revenue demand for sale
of power to HT category on actual basis and a specified % on LT category for
the current year.
Other Incomes:
6.3 Income from services rendered is accounted based on the
agreements/arrangements with the concerned parties.
6.4 Cash discounts on Power Purchases prompt payments are accounted as and
when the related dues are settled.
345
6.5 Interest income is recognized on a time proportion basis taking into account
the amount outstanding and rate applicable.
6.6 Revenue grants and subsidies are accounted as stated in para 4.2 above.
7 BESCOM is having share of 100100 No. of Rs.l000j face value amounting toRs.10.Olcrs as investment made in PCKL which amounts to 49.92% of Shareinvestment existing in PCKL and considered as Associate to BESCOM as perCompanies Act 2013.
8 The Financial impact of Associate PCKLis as under:
r--:- I I
SI.No. Particulars Details
Power Company of Karnataka Limited,
i a) Description of Associate Bangalore
b) Proportion of Ownership Interest 49.92%
c) Proportion of Voting power 49.92%-- _._------- ._ ..__ ._- --d)-Bate Acquisitiondate----- ------- --------- - -_._------------ ----------11-;01;-201-2------- -------------
" ~\ I ~-" "''''P'''' investments 10.01 CiS
====1" YI .'-VI15 l,.\,;;,; lit III "-..J H.CI
b) Share of Profits or loss of such
investments
I Up to FY14 1.22 crs
For FY15 0.52 crs,
Total 1.74 CrsI--
iii Capital reserve arising on the acquisition 0.29 crs
346
9 Earnings per Share
Particulars Current Year Previous Year
Net Profit /Loss after tax ( In Rupees) 113 96 76 814 761031342
Weighted average no. of equity shares 546915 100 546915100
Basic Earnings per Share (In Rupees) 2.08 1.39
Diluted Earnings per Share (In Rupees)
for & on behalf of the board/company
CA.Niranjan.V.KPartner
ruprasad.B.L Pankaj Kumar PandeyFO&Director (Finance) Managing Director
Place: Bangalore
Date: t 25 ' CA . 20 1~
347BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDConsolidated Balance Sheet as at 31 March, 2015
1 Shareholders' funds(a) Share capital 1 54691 51 000(b) Reserves and surplus 2
(A) Capital Reserve 17118986085 142628 07 003(S) Others 1510800000 1330800000(C) Profit/(Loss) -4752411 162 -58920 87 978(D) Revenue Reserve 1 2223978
Sub Total (b) 138895 9701519025
A
2 Non-current liabilities(a) Long-term borrowings 3(b) Deferred tax liabilities (net) 4(c) Other long-term liabilities 5(d) Long-term provisions 6
B3 Current liabilities
(a) Short-term borrowings 7(b) Trade payables 8(c) Other current liabilities 9(d) Short-term provisions 10
C
TOTAL (A+B+C)
B ASSETS
Non-current assets(a) Fixed assets
(i) Tangible assets 11 505749 89 101 383241 16703(ii) Intangible assets 11 48653306 27557336(iii) Capital work-in-progress 12 14240748981 128624 09 702(iv) Intangible assets under development 13(v) Fixed assets held for sale
(b) Non-current investments 14 117564496 1001 00000(c) Deferred tax assets (net) 4(d) Long-term loans and advances 15 6244503225 677 79 71013(e) Other non-current assets 16- A
2 Current assets(a) Current investments 17(b) Inventories 18 2014244852(e) Trade receivables 19 667206 53 843(d) Cash and cash equivalents 20 1701568735(e) Short-term loans and advances 21 396541 739(f) Other current assets 22
S
For V.K.Niranjan & Co.CharteredA~cc_",tants
FRN~/
J~njan.v.KPartnerM.No: 21432
/~AvV"-~1 L ~~(Pankaj Kumar Pandey)Managing Director
Place:Date:
Place:Date:
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
12
Revenue from operationsOther IncomeTOTAL REVENUE
3 ExpensesPurchase of Power
er operating expensesEmployee Benefits ExpenseOther expensesFinance costsTOTAL EXPENSES
4 Profits before Depreciation, Prior period items, exceptional items,extraordinary items, Income Tax (1+2-3)
5 Depreciation
6 Profit I (Loss) before Prior period items, exceptional and extraordinaryitems and Income Tax (4-5)
7 Exceptional items (Expenses(+)lIncome(-)}
8 Profit I (Loss) before Prior period items, extraordinary items and Tax
7\9 Prior period Items - {Expenses (+) I Income (-)}10 Extraordinary & Prior period items {Expenses (+) I Income (-)}
11 Profit I (Loss) before Tax (8-9-10)
12 Income Tax Expense:(a) Current tax expense(b) Less: MAT credit(c) Deferred tax(d) Tax expenses relating to prior years
13 Profit! (Loss) from continuing operations (11-12)
14 Profit I (Loss) from discontinuing operations
15 Profit I (Loss) for the year (13+14)
16 Earnings per equity share of Rs. 10 each.
(1) Basic(2) Diluted
General note (Note No.30) form an Integral part of the•• financial statements
Place:
Date:
2323A
2425262728
29
30
3132
34631 69039 -3,044,688,760
Place
Date:
1997851796 1261825520
1465317243 -4,306,514,280
-4,741,507,
61 0531
257500000 49500
1139676 761031342
1139676814 761031
2.08 1.39
r:
------------------~------------------------~~~--------------------.BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
SI.No Particulars
CONSOLIDATEDCASH FLOW STATEMENTFORTHE YEARENDED31ST MARCH 2015
Previous Year 2013-14Amount in Rs. 349
Current Year 2014-2015A Cash Flow from Operating Activities
Net Profit before TaxAdjustments for:DepreciationFinancecostExtraordinaryitems- TrueupSubsidyChangein Provision for DebtorsChangein Provision for EmployeeadvancesChangeIn Provision for DismantledAssetsReversalof Deprecianon on GrantsAsset (Other Income)Other IncomePriorperiod charges(+)or credits(-)IncomeTax
13971 76812
1997851 7963976620444
77481 224
·1105038514
·59261598·257500000
81 0531 342
126182552032345436185245300000
261105558
9204649·1226509587
306738538·49500000
98532 39638
·654764070·11652129021
·1 8308920·25117 40 235
·81407477
589344391965646763343541588
·29672844522178916533449506263-306738538
·524 53 00 000
·73581 67 663·2827513468
355800000
1277 04 27 756·212 38 54 698
403417 940·3234543618
2733428751
·2102532275
·10185681 t31
10904676132
For aJ on behalfof ~e Boardof Directors
/~ AL~ ,~'L~:l" I' ''''
(EI.l Guru prasad) (Pankaj K ar Pandey)CFO&r irector (Finance) Managing Director
·1383537274
28184486061434911 332
Operating Profit before working capital changesAdjustmentsfor
Changesin InventoriesChangesin Sundry DebtorsChangesin Short term Loans and AdvancesChangesin Long term Loansand AdvancesChangesin Other CurrentAssetsChangesin Current Liabilities
Trade PayableOthercurrent liabilities
Changesin Short term ProvisionsChangesin Long term ProvisionsChangesin Other Long·Term Liabilities
Operating Profit after working capital changesPriorperiod charges(+)or credits(-)Extraordinaryitems- Trueup Subsidy
Net Cash inflow from Operating Activities
8 Cash Flow from Investment Activities
Changesin Fixed Assets (Net)Changesin Capital Work in ProgressInvestments
Net Cash Outflow from Investment Activities
C Cash Flow from Financing Activities
Changesin Capital/ShareDepositAccountChangesin Secured LoansChangesin UnsecuredLoansChangesIn l.onqt-Terrn BorrowingsChangesin Short-TermBorrowingsChange In Current maturities of long term
debts/Current liabilitiesFinancecost
Contributionsfrom Consumers/Reversalof DepreciationonGrantsAsset (Other Income)
RevenueReserve
Net Cash available from Financing Activities
D Net Change in Cash and Cash equlvalentsSurplus Cash [(A) + (8) +( C)]Add: OpeningCash and Cashequivalents
E Closing Cash and Cash equivalent:
6027330164
·456717173·786 93 02033
·84112449533467788
141 2934353
4429001602·250 31 28 964
26825580073826724
44658467266297402538
59261598
6356664136
·14269820164·137 83 39 279
·1 7464496·15665623939
1434911 332ForV.K.Nlranjan& Co.CharteredAccountantsFRN:24 fI
iranjan. V.KPartnerM.No: 21432
Place: B~galo::_("\ ~~~Date I~ ..U'i ,~O Ir /JtY \-:>..<-...\
180000000
13873059768011490100
·397 66 20 444
3961217 59612223978
9575617206
266657403
143491133217015687351701568735
Place: BangaloreDate I ~ ·nc, , ~Ol~
z.!I'::>"'onuBISCOM
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 350NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Nott> 1B -R':1concilation
Note 1C -Percentage of .Holding
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 351
NOTESTO THE CONSOLlDHED FINANCIALSTATEMENTS
Less: Reversal of depreciation
Closing Balance
Subsidies received from REC towards RGGVY scheme 55.210
14888095736 11987568695
1102470618
580745321044396086981105683 1044396086
1370411
13956812308421249784666 123084222.
1426280700417118986085
-589 20 87 9761139676' 814
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTESTO THE CONSOLIDATEDFINANCIAL STATEMENTS
2469 35 58457
B UNSECURED LOANSTerm Loans From
-Banks (Refer Note 3B below)-Others (Refer Note 3B below)
Sub-Total
Bank of IndiaIn 28 Quarters, 27 quarterly installments ofRs.7.15Crore per quarter commencing from 3 years from thedate of first disbursement. 28th Instalment will be ofRs.6.95 Crores. Interest to be serviced monthly. ROI atbase rate +0.15% P.A.Presently 10.35% P.A. Secured
way of hypothecation of assets financed by the Bank8.11 Crs) First instalment will be due on
53.500
53.500
53.500
crs Repayment in 40 quarterlyeach tnterc.st to be paid as when due.
Rs.370crs base rate +1% presently 11.10%installment due on 24.01.2017. Hypotecation ofassets of the Company valued at Rs.417.09 crs.
4 Bank of MaharastraFor RS.125Cr The term of repayment in 28quaterty installment of Rs.4.47 Crs per quarterRS.4.31 crs in 28th quarter after initial moratoudum
ROI at B.R+0.10% & for Rs.27S.00 crsof Rs.9.28 crs per quarter &for 28th
after initial moratoirum period ROI
Repayment within 13 years (including moratorium periodof three years) payble in 33 quarterly instalment of Rs.3.3 Crore each. at the end of 30 th instalment will beRS.3.43 Crs Interest to be paid as & when due. ROIRs 100crs base rate + 0.25% pa (floting withoutresell.Sub-Total 11
3053200
:000000
352
1205 27 54 7774466120
22797
1428000000
3624800000
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDe81SCOM
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
353
53.3327
B Term Loans from Others1 Loans from Rural Electrification Corporation Limited.
New Delhi. -APDRP Counter part funding(Secured by Hypothecation of all existing
unencumbered moveable properties includingmachinery. equipments. machinery spares. tools.implements. and accessories installed I created Ierected and all future moveable including machinery,equipmelns, machinery spares. tools. implements, andaccessories installed I created I erected in future and itsstock of materials equipments bought or 10 be boughtout of Ihe loan amount at 8.5% & 11.70% interest rates.
)
220774100 41 7398490
14664809002 PFC - RAPDRP (Part A)
The tenure of loan will be 10 years from the date ofdisbursement including moratorium period of 3 years forboth Principal and interest. Interest to be paid as notifiedby Minislery of Finance from lime ·10time. 'Secured byway of hypotecalion on the newly financed assestsunder Ihe project as securities for loan. Firstinstalment due on 19.07.2012
53.347 1466480900
3(a) RAPORP PFC (8) (Counter part Funding)The loan shall be repaid in 60(SIXTY) equal quaterlyinstallments. The first installments become due on 15thday of october 2015 the subsequent installments willbecome due for payment on Ihe 151hday of January,15th day of April, 15th day of July, 15th day of October
~'!l1!Y.1~'!L . ..__---- ....---1--.'---------+------------ -.--.------ -.----.--.--..4 PFC DRUM PROJECT 53.337· 41065742 61598619
I53.340
2769727679 2609249302
I53.335 2301064644
I1663319810
3 RAPDRP PFC (B)
period of 5 years. The interest and interest lax on thesaid loan shall be borne by the Utility and shall begin toaccrue from the date of release of loan by Ministry ofPower .'Secured by way of hypotecalion on the newlyfinanced assests under the project as securities forloan.First Instalment falls due in the month of July-
2015
The Loan shall be repaid by the Disribution Company in40 equal quarterly instalments. The first instalment willbecome due on 151hday of April 2008 Interest on Ihesaid loan at the rate of interest prevailing on the date ofeach olst.ursernent. 'Secured by way of hypotecation ofall assets created under the loan.Repayment due :The first instalment will becomedue on 15th day of April 2008
53.347
53.347
435420000 1974522979 I
1509597409
5 JICA (Japan International Co-Operative Agency)
The bank agrees to lend the company an amount notexceeding YEN 10643000000 as Principal fur DASunder relavence laws & RegulaUon of Japan.TheCompany repay prinicipal amount in accordance withamortization schedule setforth in Ihe agreement.TheCompany shall· pay Ihe interest semiannuallyat the rateof thi6c- fviJiU' of one iiaicG,tt (O.75%)p.,6
e REC (TL) NJY Phase 2RepaY·'lp.ntwith in 13years (including moratorium periodof 3 years) principle installment is payable in equalannual installments and on 15 l~of the month in whichthe first disbusement was made.the rate of interest @11.5% PA'Secured by way of hypotecation of all assets crealedunder the loan.
7 REC (TL) OlC MeteringRepayment with in 13years (including moratorium periodof 3 years) principle installment is payable in equalannual installments and on 15 Ih of the month in whichthe first disbusemenl was made.the rate of interest @
11.5% PA'Secured by way of hypolecation of all assets createdunder the loan.
53.335 1364934209 1181896020
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
53.335
NOTES ;'0 THE CONSOLIDATEDFINANCIALSTATEMENTS
934114HVDS
53.335
53.335
354
74865901
1106719413
77 17 630
-1-·--·---·-----·--1------- ------.-.-----..-
9409719
89778752
6615110
291960383 333669010
9409719
from Government (tllrough REG) - RGGVYTotal repayment period will be 15 years .
5years moratorium period 10gether with interest5% • 12.25% with quarterly interest)Repayment beg;:" frorn 15/03/2012.
53.3357 106318898
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
i5"-IBEseOM
Loan tram GoK tor Power Sector AutomationLoan torperiod of ten years at the rate at 9% p.a.No specific
& Conditions Given However as per GO No FD01BLA 2002 dated:10.07.2003 Loan tor a period at tenyears & (irs( instalment begun in the month at
at the rate of 9% o.atram GoK Ganga Kalyana.
NOTESTO THE CONSOLIDATEDFINANCIALSTATEMENTS
53.3367
294053.3417
6
53.960
toan amount is accounted as per the adviseL and it comprising at various loans with .and conditions. Interest varies trom 10.75%
11%)Sub-Total
i Deposit Wor1<sDeposit Contribution Work
Other Deposits tram ConsumersSecurity Deposit from consumers:
47.301 to47.303,47.305,
47.307 to47.317,47.321,47.306
47
47.648.1+48.2+4
8.3
1844947383
355
4410000
5410 000
1812800 291
1159772671
BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
356
':;1 L Tora penoa at -:'uOaays_10 oe repayea on fl1day of first drawal and interest to be serviced as
debited at 10.45% p.a(floting) i.e.. base rate ofSecurities: Floating charge on Book debts of
with 10'10Margin for 150 Crs.due starts on 13/06/2012
53.500
53.500
53.500
53.500
53.5007
24.42021.40924.41424.41524.428
11
500 00 00 000
200 00 00 000
1499938176
-----1---------------------- ----.-- -1----------
125 00 00 000
100 00 00 000
499999999
250 00 00 000
140 53 55 812196 02 66 7185030119192
Ii~BISCOM
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 357NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
42.1 to 42.5,42.6
40.30\)+46.301+46.441
. for Expenses
3 Payable to other ESCOMs
. -_ ..._-_._ ..- .---_ ..----_ .._------_._------._-----_._---_. ------------- ---- ----------- ..---------------
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 358eBaSCOM
Note 9 - Other Current Liabilities
NOTES TO THE CONSOLIDATEDFINANCIALSTATEMENTS
consumption charges LT & HT23.181&23.293
46.710
46.101
46.102
Revenue Suspense Account & Anywhere payment
Other PayablesStale ChequesRetention Money - Bill amount relained
Other ESCC~.~SESe
Excess credit under reconcilialion with Bank
Draught relief fund.Miscellaneous Deposits/Other liabilitiesAmount withheld from employees against recoverables
7746.978
46.966,46.9
28
I,,'JlIlIIUU'UUIl received by BESeOM againstIcomnensaucn to the victims of Electrical accidents.
47.323
296542981
9225519
351912
8974671623003271
·1915
459073
727200
28.105
44.21044.22044.31044.32044.330
46.800Provision for Income-Tax & Fringe Benefit Tax
380119757
13599611
351912140 669724497
2044695075
!... ·COM
iI
BANGALORE ELECTRICITY SU~PL Y COMPANY L1l'v•.. zo
NOTES TO THE CONSOLIDATED IAL STATEMENTS
e I eI::3ANGALORE ELECTRICITY SU~PLY COMPANY LlMII en
NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS!!
Note 11 - Tangible I Intangible Assets
1. Buildings includes shared assets as per KPTCL's intimation2. Addition includes released assets after reconditioning3. Deduction includes transfer of assets for reconditioning.4. Additions I deletions of assets and depreciation thereon include:
a) Items -penQjngreconcillation relating to inter unit transfers andb) Prior pe'rio~ adjustments.
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED361
NOTESTO THE CONSOLIDATEDFINANCIAL STATEMENTS
B DEPOSITSa) Security Deposits with Railways and Othersb) Security Deposit from Suppliers & Contractors otherthan cash.c) Deposit with Jurala Hydro Electric Project
28.9
28.930
20.251
5741413985 6267406224Loans and Advances - Others
a) Material Stock Account
Less :Excess IShortaqeMateterial imprest AccountOther Material Account
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 362
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22.610 197 95 53 04822.810-22.820 :- - =.23=91=89~2
22.64122.700
ii~B!SCOM
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED363
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
23.1
23.228.625
28.627
23.7
23.8
47.607,47.609,47.6117.612
27365
-52954241 9780797289
28.626
23.423.4
3884 58 60 897
le\ Amounts Receivable from GoK towards Free PowerSupply to IP sets upto 10HPd).Tariff subsidy Receivable from GOK towards BJ/KJinslallalion
. Unbilled Revenue - LT
12273157 10646021 185
Dues from Penmanentlydisconnected installations 23.5
12798451\ 498
23.9 12330561491
28.826,831,36,841
28.8
28.8281
23.:
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED364
NOTESTO THE CONSOLIDATEDFINANCIALSTATEMENTS
Cheques. drafts on handBalances with Banks:(l) in current accounts
(a) OperaUve Accounts with scheduled banks(b) Non-Operative Accounts with scheduled banks
24.40024.300 5896982381- -1
9195804271- -4(ii) in deposit accounts'
Siamps on Hand
20.2
24.120.24.13
28.850 27549421 27487860
28.821 135194590 77615299
28.821 7338842
recoverable from current employees 28.4 141305 9944228.402 30579
ex- 28.899 61856 61856 62677700
------_,-_ ..
Loans and Advances to Staff - Interest free 27.2 137309589
Remltlance to Head Office -Transit Account 24.5Transfers from Head Office In Transit Account 24.6 81258135
3 Amount paid to IT under protest 28.821 737933607
4 Other Receivables 28.72.28.74 10212735 102 127355 Receivables from Pension I Gratuity Trust 28.9 87321354 87321
6 Cash Receivables from Associates KPTCL 28.9ESCOMS
4526439995
7from GOK refund of rnetereqaiprnent
28.710deposit
8accured but not due on deposits (including Bank
28.2& 3 120595Deposits)
9 Prepaid expenses 28.820 1025Preliminary expenses to the extent not written off
Unit Accounts- Materials 31 -82723
32 24635
36 -15146437 -94012833 2334 49
10
Fa.IISCO,"
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 365NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
BJ/KJ Up To 18 Units Metered installations 61.101 31,05,38,974
BJ/KJ Up To 18 Units Un Meteredinstallations 61.102 76,975
BJ/KJ Above 18 Units having more than oneoutlet 61.103 23,16,50,788 30,13,33,816
Lighting/combined lighting, heating & motiveinstallations BBMP (Urban) - LT 2(a)1 61.111 24,73,59,34,302 21,54,05,55,828
lighting, heating & motiveinstallations (Urban Local Bodis other
LT 2(a)i - LT2 (a)ii 61.112 2,06,67.,20,610 1,18,50,15,794
Lighting/combined lighting, heating & motivepower installations (Village Panchayats) - LT
6 LT 2A III 2(a)iii 61.113 11,02,964
i lighting, heating & motive
7 T 2A FL power installations (Free Lighting) 61.114 6,43,75,703 6,45,28,300
including aided educational institutionsUrban Local Bodies including City
8 LT 2B I LT 2 (B)i 61.115 25,32,64,497 21,50,10:172
Lighting/combined lighting, heating & motivepower installations of Pvt.Professionalincluding aided educational institutionsVPs -LT2(b)ii 61.116 2,97,90,779 3,28,12,938
Commercial Lighting, heating & motivepower installations of ULBs including City
61.131 12,45,33,62,303 11,30,65,98,459
1,21,04,23,229 84,80,65,44061.132_----_._--- I
_------- .- _. - .._---- .. _ ..-----
power installations - Office Lighting 61.133 1,66,30,090 2,37,60,565
Revenue trom saie of power- commercial-applicable to Areas coming under VillagePanchayats- LT3(iii) 61.135·
IPSets upto and inclusive of 10HP-Unmetered installations till such time, metersare fixed-Rural feeders-LT4(a)i-Free power-Unmetered 61.141 13,58,79,09,389 7,81,7".45,348
IPSets upto and inclusive of 10HP-wheremeters are fixed-Rural feeders-LT4(a)i-Freepower-Metered 61.142 3,34,655
IPSets upto and inclusive of 10HP-Urbanmetered'LT4(a)ii-Free power-
61.143 69,368 8,56,340
61.146 25.18061.144 6,00,00:3461
1,26,72,199
20 LT 4C 61.145 10,66,03,792 1,09,81,150
21 61.147 26,76,597 2,85,326
& motive power (including lighting)LT 5A area upto & below 5HP - LT5(a)i 61.151 56,51,19,295 -54,79,69,630
& motive power (including lighting)Bangalore Metropolitan area for above
5HP & below 40HP (inclulding demand23 based tariff) - LT 5(a)ii 61.152 1,73,58,30,620 1,56,23,11,447
Heating & motive power (including lighting)of BBMP area for 40HP & above but below
(inclulding demand based tariff) - LT61.153
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED366
Heating & motive power (including lighting)-BBMP area for 67HP & above (inclulding
25 demand based tariff) - LT 5(a)iv 61.154 53,64,79,333 48,96,92,523
Heating & motive power (including lighting)of other than BBMP area upto and below
26 LT 58 5HP - LT 5(b)i 61.155 37,19,32,802 31,68,07,760
Heating & motive power (including lighting)of other than BBMP area for above 5HP &below 40HP (including demand based tariff)-
?.7 I.T Sln)ii Pi1 11ij:\ 9?1'\7 RS.~96 ~:'\ 2?,R77'lR
Heating & motive power (including lighting)of other than B8MP area for above 40HP &below 67HP (including demand based tariff)-
28 LT 5(b)iii 61.157 94,72,05,340 87,46,47,008
Heating & motive power (including lighting)other than BBMP area for 67HP and above
29 (including demand based tariff)- LT 5(b)iv 61.158 10,80,20,134 15,06,82,171
Water supply installations of VPslTP's and
30LT6BI TMC/CMCs - LT 6 61.171 3,59,35,52,605 3,17,72,03,418
Public Lighting installations of VPs / TP's
31 LT 68 II and TMC/CMCs - LT 6 61.172 2,94,74,72.349
\
2.71.09,62.997
Temporary Power Supply - LT installations -
32 LT 7 LT7 . 51.\.lJj- 2.?5.18,42,573 l,76,65,sn,13B
I Sale of Power L T category71252777931 5859 11 20 413
Drainage/Sewerage 8WSSB & Localbodies/KUWS & S8 -Water supply
33 HT 1 installations -HT 1 61250 2874894771 2694347684
34 HT 2A I Industires in BBMP area - HT 2(a)i 61.260 15952399837 14703842886
Industires in areas other than BBMP area -
35 HT 2A II HT2(a)ii 61.261 1717 77 04 142 15197909396
Revenue from sale of power - Govt.hospitals & Hospitals run by charitable
HT2C I institution, Educational institution 61.263 586944908 2517 79 882
Revenue from sale of power - Govt.hospitals & Hospitals run by charitableinstitution. Educational institution other than
------ _._- HlZ'CI, thbs-e-Cbvere<funderflT20-'--- -.-------- "-6T264' ---,a--rS-70726!-----._---_._- 1-----42"01'2'2'427 --,-,_- --'_'--
HT Commercial applicable to BBMP area -
~O\t-n<t> i Hr~lb)i 01.270 ziee 85 8u J04 I zi 1"106:JL .::90
Water Supply installations of VP'sITP's &
\TMC/CMC's - LT6 61.271 295203781 307817384
HT Commercial applicable to areas other
37 HT 2B II than BBMP area - HT2(b)ii '-1.273 1485830614 15177 68163
Lift Irrigation Schemes-Govt Dept & Govt
38 HT 3A I ownd Corporalions - HT3(a)i 61.260 38258365 40703067
Lift irrigation Schemes - Pvt LI Schemes and
39 HT3AII LI societies HT 3 a (iI) 61.261 135190 -1051 37960
Lift irrigation Govt Horticulture, Coffee, Tea,coconut. Arecant Etc Agricultural farms HT 3
40 HT 3B b 61.282 2731111 814113
61.269 664776 355232
Residential apartments and colonies of
41 HT 404. BBMP Area HT 4 (a) 61.290 7577 13 634 6071 23092
\
Residential apartments and colonies Urban
42 HT 4B Local Bodies other than HT 4 (a) - HT 4 (b) 61.291 25069685 982933
Residential apartments and colonies of VPs -
43 HT 4C HT 4 (c) 61.292 6076112 43008168
Temporary Power Supply - HT installations - ,44 HT 5 HT5 61.293 747910398 21 9600361
II Sale of Power HT category62601806554 5701 71 39 124
Total LT+HT13385 45 84 485 115608909537
III Other - Operating revenues
1 Fuse charges 61.901 66152 45399
2 Reconnection Fee (D&R) 61.902 10309711 619135
3 Public Lighting Maintenance Charges 61.9035788
4 Service Connection 61.904 471466126 398782078
5 Delayed payment charges from consumers. 61.905714315
6 Other Receipts from consumers 61.906 525188271 235908704
7 Registration fee towards SRTPV connection (Solar 61.907 1683515' 21452
8 Facilitation fee towards SRTPV connection (Solar 61.906 11000
9 ReCoveries for theft of power 61.710 51 15073.1013839848 S:i'60 91i 871
5 Provision for withdrawal of Revenue Demand 83.8 72377591 714 71 442
TOTAL 134796046742 11617 3S 34966
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
B••sea....
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
62.917
62.916
61.122
62.330 -79.573
62.901RentIncentives received 62.907+62.3
61+62.911+62.922+92+92
918
Excess provision made in prior period which is no longerrequired
of matenals found excess duimg physical verification
62.325
62.905
61.314
61.315
61.316 14087965
173304161.317
61.3
367
131438243
1288769722
2702
262332
26692
98478
1289665313
212593
632095381
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED368
NOTES TO THf.: CONSOLIDATED FINANCIAL STA fEMENTS
74.2 & 3
74.5
74.6
74.2
Civil works (Pipeline, Seweage, drainage and water supply) 74.3
Repairs and maintenance - buildingsLines, Cable Net Work Etc.
Vehicles
Office Equipments.
R & M charged to Capital Works (Credit account)
i and maintenance· others
Rentals/maintenance cnarqes
74.8
74.974.3 to 74.8
77.611
20312704
--_~--------I
13051 79T erminal Benefits 75.6 13431 75427 13431 75427
4 S tall Welfare
Medical Expenses reimbursement 75.611 10126494075.612 7698
Leave Encashment - For employees covered under 75.616 98361 98275_617
5
6 75.900
t 05 647451
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
;":
76.131.135.13710139.
352085414
76.136 29750318
76.151 3636061810,10"' 26518093
76.155.76.260
24653768
76.156 5936125
76.157 2610
76.15B 24915283
76.2011076.2B~
12241046
76.102 6875907
76.104.105.106.103
76.103
76.160
76.193
76.15476.152:162.1
190.191.1
19731 28358
22 S3
2205668735
10
11
12
13 & other material related expenses
14
15
76.194
Expenses charged to capitalworks (Credit Account) 76.900
18 & Low value items Written off 77.610
19 77.5
20 7B.B20 107B.B90
21 7B.600
22 7B.861
23 79.4BO
24 79.110
25 79.5
26 ;S.410g.79.430
22 79.511
23 for Loss on obsolescence of stores, etc in stock 79.561
24 tnterest on betated payment for power PurchaseSO.102 to
BO.149
369
370
B•• seo"",,
BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Interest capitalised on capital borrowings
78.868
78.810to78.815
78.900
1.ExcessprovisionforDepreciationinpriorperiod 65.6002. Excess/short provision for Interest & Financecharges 65.7003.0ther excess provision in prior period 65.800
401530388
B Debits relating to earlier years :1. Employeecosts relating to previousyear2. Depreciationunder providedin previousperiod3.lnterest and other finance chargesrelating to previous
83.50083.600
83.700
83.840
83.85083.300 11,60,893
164002782
.R FOR FY 2014-15LIMITED
============B=A=N~RE ELECTRICITY SUPPLY CAVERAGE RE:,....t..lSATIONRATE FROM SALE OF
Amount in Rupees & Consumption in Units
AverageRealisation
OpeningBalance
RevenueCollection
HOAdjustments
& withdrawals
ClosingBalance
DESCRIPTION TARIFFNoot