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« Back STATEMENT OF AUDITED STANDALONE & CONSOLIDATED RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.03.2020 (Unaudited)Quarter ended 31.12.2019 (Unaudited)Quarter ended 31.03.2019 (Unaudited)Year 
ended 31.03.2020 (Audited)
Year 
ended 31.03.2019  (Audited)
1234567
1Income      
 (a) Revenue from operations27246.8823496.3521222.3997700.3990307.43
 (b) Other income1031.87526.271323.222778.021872.13
 Total income (a+b)28278.7524022.6222545.61100478.4192179.56
2Expenses     
 (a) Fuel cost14988.4112466.8711990.6754241.8252493.74
 (b) Electricity purchased for trading829.69593.42709.582776.442713.68
 (c) Employee benefits expense1427.901164.741206.084925.604779.89
 (d) Finance costs1836.911760.81925.706781.974716.74
 (e) Depreciation and amortisation expense2128.952319.811504.758622.857254.36
 (f) Other expenses2683.122294.932671.668663.817548.63
 Total expenses (a+b+c+d+e+f)23894.9820600.5819008.4486012.4979507.04
3Profit before tax and Regulatory deferral
account balances (1-2)
4383.773422.043537.1714465.9212672.52
4Tax expense:     
 (a) Current tax (refer Note 4)3287.07671.78897.255153.462849.12
 (b) Deferred tax1696.581353.28(8086.33)4028.49(5767.83)
 Total tax expense (a+b)4983.652025.06(7189.08)9181.95(2918.71)
5Profit after tax before Regulatory deferral
account balances (3-4)
(599.88)1396.9810726.255283.9715591.23
6Net movement in Regulatory deferral account balances (net of tax)1852.321598.16(6375.93)4828.84(3841.34)
7Profit for the period (5+6)1252.442995.144350.3210112.8111749.89
8Other comprehensive income     
 Items that will not be reclassified to profit or loss     
 (a)Net   actuarial   gains/(losses)   on   defined   benefit plans(152.81)(64.52)(245.61)(346.04)(235.98)
 (b)Net    gains/(losses)    on    fair    value    of    equity instruments(21.36)0.30(23.28)(41.64)(16.74)
 Income tax on items that will not be reclassfied to profit or loss     
 (a)Net   actuarial   gains/(losses)   on   defined   benefit plans26.7011.2752.9360.4650.85
 Other comprehensive income (net of tax)(147.47)(52.95)(215.96)(327.22)(201.87)
9Total comprehensive income for the period (7+8)1104.972942.194134.369785.5911548.02
10Paid-up equity share capital (Face value of share Rupee 10/- each)9894.569894.569894.569894.569894.56
11Paid-up debt capital$   152693.62127430.48
12Other   equity   excluding   revaluation   reserve   as   per balance sheet   103674.8897513.61
13Net worth*   112980.96106771.54
14Debenture redemption reserve   7011.437902.43
15Earnings  per  share  (of  Rupee  10/-  each)  -  (not  annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)1.273.034.4010.2211.88
16Earnings  per  share  (of  Rupee  10/-  each)  -  (not  annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee)(0.61)1.4110.845.3415.76
17Debt equity ratio   1.351.19
18Debt service coverage ratio (DSCR)   2.072.21
19Interest service coverage ratio (ISCR)   4.455.26
$ Comprises long term debts
* Excluding Fly ash utilization reserve
See accompanying notes to the financial results.

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)

Sl.No.ParticularsAs at
31.03.2020
(Audited)
As at
31.03.2019
(Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment156273.02125290.68
 (b) Capital work-in-progress73066.7690808.89
 (c) Intangible assets538.28329.94
 (d) Intangible assets under development292.52397.80
 (e) Financial assets  
     (i) Investments in subsidiaries and joint venture companies26350.6113054.02
     (ii) Other investments50.2891.92
     (iii) Loans600.26544.38
     (iv) Other financial assets1425.161424.29
 (f) Other non-current assets11122.6213269.30
 Sub-total - Non-current assets269719.51245211.22
2Current assets  
 (a) Inventories10731.867988.02
 (b) Financial assets  
     (i) Trade receivables15668.118433.86
     (ii) Cash and cash equivalents20.3724.38
     (iii) Bank balances other than cash and cash equivalents2188.742119.96
     (iv) Loans308.56305.79
     (v) Other financial assets11529.138331.84
 (c) Other current assets8378.4114929.89
 Sub-total - Current assets48825.1842133.74
3Regulatory deferral account debit balances9122.763406.00
 TOTAL - ASSETS327667.45290750.96
BEQUITY AND LIABILITIES  
1Equity  
 (a) Equity share capital9894.569894.56
 (b) Other equity103674.8897513.61
 Sub-total - Total equity113569.44107408.17
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
     (i)   Borrowings146538.70119698.08
     (ii)  Trade payables  
         - Total outstanding dues of micro and small enterprises10.356.41
         - Total outstanding dues of creditors other than micro and small enterprises57.6641.76
     (iii) Other financial liabilities652.241314.29
 (b) Provisions635.69588.74
 (c) Deferred tax liabilities (net)8093.984200.14
 Sub-total -  Non-current liabilities155988.62125849.42
(ii)Current liabilities  
 (a) Financial liabilities  
     (i)   Borrowings14049.3615376.09
     (ii)  Trade payables  
         - Total outstanding dues of micro and small enterprises495.70353.41
         - Total outstanding dues of creditors other than micro and small enterprises8504.937197.53
     (iii) Other financial liabilities23715.7424902.27
 (b) Other current liabilities1270.90684.34
 (c) Provisions6830.226840.36
 Sub-total - Current liabilities54866.8555354.00
3Deferred revenue3242.542139.37
 TOTAL - EQUITY AND LIABILITIES327667.45290750.96

 

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.03.2020 (Unaudited)Quarter ended 31.12.2019 (Unaudited)Quarter ended 31.03.2019 (Unaudited)Year 
ended 31.03.2020 (Audited)
Year 
ended 31.03.2019  (Audited)
1234567
1Segment revenue     
 - Generation27079.0623176.8521501.9196583.9288702.38
 - Others1384.301193.38904.564991.113241.51
 - Less: Inter segment elimination372.61381.98-1,524.81-
  28090.7523988.2522406.47100050.2291943.89
 - Unallocated188.0034.37139.14428.19235.67
 Total28278.7524022.6222545.61100478.4192179.56
2Segment results (Profit before tax and interest)     
 - Generation8638.447225.72(2519.83)27606.7013724.83
 - Others122.34171.83165.49569.02389.72
 Total8760.787397.55(2354.34)28175.7214114.55
 Less:     
 (i) Unallocated finance costs1836.911760.81925.706781.974716.74
 (ii) Other unallocable expenditure net of unallocable income295.62278.20674.281076.681621.76
 Profit before tax (including regulatory deferral account balances)6628.255358.54(3954.32)20317.077776.05
3Segment assets     
 - Generation211353.34192321.65163073.92211353.34163073.92
 - Others6685.206408.984661.176685.204661.17
 - Unallocated109628.91111529.02123015.87109628.91123015.87
 Total327667.45310259.65290750.96327667.45290750.96
4Segment liabilities     
 - Generation18410.2717455.5415748.3118410.2715748.31
 - Others3841.803648.052869.853841.802869.85
 - Unallocated191845.94176078.53164724.63191845.94164724.63
 Total214098.01197182.12183342.79214098.01183342.79

The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.

 

STANDALONE STATEMENT OF CASH FLOWS

(Rupee Crore)

Sl.No.ParticularsYear ended 31.03.2020
(Audited)
Year ended 31.03.2019
(Audited)
A.CASH FLOW FROM OPERATING ACTIVITIES  
 Profit before tax14465.9212672.52
 Add: Net movements in regulatory deferral account balances (net of tax)4828.84(3841.34)
 Add: Tax on net movements in regulatory deferral account balances1022.31(1055.13)
 Profit before tax including movements in regulatory deferral account balances20317.077776.05
 Adjustment for:  
 Depreciation and amortisation expense8622.857254.36
 Provisions265.731150.07
 Deferred revenue on account of advance against depreciation-(74.35)
 Deferred revenue on account of government grants33.07(39.03)
 Deferred foreign currency fluctuation asset(1033.89)(251.53)
 Deferred income from foreign currency fluctuation1289.12371.78
 Regulatory deferral account debit balances(5851.15)4896.47
 Fly ash utilisation reserve fund(48.15)5.42
 Exchange differences on translation of foreign currency cash and cash equivalents0.030.01
 Finance costs6730.264699.00
 Unwinding of discount on vendor liabilities51.7117.74
 Interest/income on term deposits/bonds/investments(53.22)(67.65)
 Dividend income(210.40)(124.19)
 Provisions written back(471.04)(316.22)
 Profit on de-recognition of property, plant and equipment(12.25)(2.72)
 Loss on de-recognition of property, plant and equipment59.96173.84
  9372.6317693.00
 Operating profit before working capital changes29689.7025469.05
 Adjustment for:  
 Trade receivables(7234.25)(855.89)
 Inventories(2206.69)(1607.99)
 Trade payables, provisions, other financial liabilities and other liabilities1534.47588.34
 Loans, other financial assets and other assets3420.35(4410.69)
  (4486.12)(6286.23)
 Cash generated from operations25203.5819182.82
 Income taxes (paid) / refunded(3189.32)(3025.54)
 Net cash from/(used in) operating activities - A22014.2616157.28
B.CASH FLOW FROM INVESTING ACTIVITIES  
 Purchase of  property, plant and equipment & intangible assets(14534.55)(17701.26)
 Payment for business acquisition-(2145.33)
 Disposal of property, plant and equipment & intangible assets63.6271.06
 Investment in subsidiaries and joint venture companies(13317.48)(3051.35)
 Loans and advances to subsidiaries(46.32)(17.65)
 Interest/income on term deposits/bonds/investments received63.1855.93
 Income tax paid on interest income(37.23)(39.46)
 Dividend received210.40124.19
 Bank balances other than cash and cash equivalents(78.74)1809.65
 Net cash from/(used in) investing activities - B(27677.12)(20894.22)
C.CASH FLOW FROM FINANCING ACTIVITIES  
 Proceeds from non-current borrowings28775.6224844.83
 Repayment of non-current borrowings(7667.17)(13839.47)
 Proceeds from current borrowings(1326.73)8875.77
 Payment of lease liabilities(42.77)(8.51)
 Interest paid(10503.90)(9248.74)
 Dividend paid(2968.37)(4922.55)
 Tax on dividend(607.80)(1000.49)
 Net cash from/(used in) financing activities - C5658.884700.84
D.Exchange differences on translation of foreign currency cash and cash equivalents(0.03)(0.01)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)(4.01)(36.11)
 Cash and cash equivalents at the beginning of the period24.3860.49
 Cash and cash equivalents at the end of the period20.3724.38

Notes to Standalone Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 27 June 2020 and approved by the Board of Directors in their meeting held on the same day.

2. The standalone financial statements of the Company for the year ended 31 March 2020 have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013. The statutory auditors have issued unmodified opinion on these standalone financial statements. The audited accounts are subject to review by the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013.

3 a) (i)The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019 for all stations, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019.In case of projects declared commercial w.e.f. 1 April 2019 and projects where tariff applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in the tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019.  The amount provisionally billed for the year ended 31 March 2020  is  Rupee 91,339.38 crore (31 March 2019: Rupee 88,278.09 crore).

(ii) Sales for the year ended 31 March 2020 have been provisionally recognized at Rupee 91,491.55 crore (31 March 2019:  Rupee 89,007.64 crore) on the said basis.

b) Sales for the year ended 31 March 2020 include Rupee 31.59 crore (31 March 2019: (-) Rupee 2,775.82 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

c) Sales for the year ended 31 March 2020 include Rupee 1,768.88 crore  (31 March 2019: (-) Rupee 0.02 crore) on account of income tax recoverable from / (refundable to) the beneficiaries as per Regulations, 2004. The current year amount is on account of income tax liability determined under Vivad se Vishwas Scheme notified under Direct Tax Vivad se Vishwas Act 2020. Sales  also include Rupee79.97 crore (31 March 2019: Rupee 82.68 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

d) Revenue from operations for the year ended 31 March 2020 include Rupee 2,903.59 crore (31 March 2019: Rupee 2,894.74 crore) on account of sale of energy through trading.

4. Provision for current tax for the year ended 31 March 2020 includes Rupee 2,660.17 crore (31 March 2019: (-) Rupee 105.88 crore) being tax related to earlier years. This includes additional tax provision amounting to Rupee 2,661.47 crore, as the Company has decided to settle pending Income Tax disputes by opting under the Vivad se Vishwas Scheme notified by the Government through ‘The Direct Tax  Vivad Se Vishwas Act, 2020’. The company is in the process of completion of procedural formalities under the scheme and settlement of pending balances will be carried out on completion of such formalities.

5. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years.  The carrying cost of the project as at  31 March 2020 is Rupee 15,662.28 crore (31 March 2019: Rupee 15,598.80 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

6. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2020 is Rupee 163.40 crore (31 March 2019: Rupee 163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. An amount of  Rupee 749.01 crore (31 March 2019: Rupee 719.71 crore) has been incurred upto 31 March 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI, which includes Rupee 439.57 crore (31 March 2019: Rupee 413.40 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

8. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years after which it was to be transferred to the Company at 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee356.31 crore was paid upto 31 March 2019. In the previous year, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety. Considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, Significant Accounting Policies of the Company and the principle of conservatism, an amount of Rupee 394.07 crore was estimated and provided for as at 31 March 2019 and balance amount of Rupee 1,875.73 crore was disclosed as contingent liability, along with applicable interest.

During the year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also, directed release of Rupee 500 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure.  On 17 January 2020, unconditional BG was submitted by the operator to Registrar General and Rupee 500 crore was released to operator by the Hon’ble High Court. Further,Rupee 356.31 crore paid to operator has been booked to fuel cost and the corresponding provision has been reversed during the current year.

As per orders of Hon'ble High Court, formal handing over of the infrastructure has started on 20 January 2020 at the project site. However, due to certain law and order issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred.The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 37.92 crores as at 31 March 2020 (31 March 2019:Rupee 394.07 crore) and the balance amount of Rupee 2,014.84 crore (31 March 2019: Rupee 1,875.73 crore) has been disclosed as contingent liability.

9. During the year, thermal power units of one 800 MW at Gadarwara w.e.f. 1 June 2019, one 800 MW at Lara w.e.f. 1 October 2019, one 660 MW at Tanda w.e.f. 7 November 2019, one 660 MW at Khargone w.e.f. 1 February 2020, one 800 MW at Darlipalli w.e.f. 1 March 2020 and one 250 MW at Barauni w.e.f. 1 March 2020 have been declared commercial. Further, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019.

10. During the quarter, the Company has paid an interim dividend of Rupee 0.50 per equity share (par value Rupee 10/- each) for the financial year 2019-20. The Board of Directors has recommended final dividend of Rupee 2.65 per equity share (par value Rupee 10/- each). The total dividend (including interim dividend) for the financial year 2019-20 is Rupee 3.15 per equity share (par value Rupee 10/- each).

11. The Company has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Company.

12. In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment) Act, 2019, the Company has an irrevocable option of shifting to a lower tax rate along with consequent reduction in certain tax incentives including lapse of the accumulated MAT credit. The Company has not opted for this option after evaluating the same and continues to recognize the taxes on income as per the earlier provisions.

13 a) During the quarter, the Company has acquired legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in North Eastern Electric Power Corporation Ltd. (NEEPCO) and the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO (collectively representing 100% of the total paid up share capital of NEEPCO) for an aggregate consideration of Rupee4000.00 crore (Rupees Four Thousand Crore only). 

b) During the quarter, the Company has acquired legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDC India Limited (THDCIL) and the acquisition of beneficial ownership in 6 equity shares held by the nominees of the President of India in THDCIL (collectively representing 74.496% of the total paid up share capital of THDCIL) for an aggregate consideration of Rupee 7500.00 crore (Rupees Seven Thousand Five Hundred Crore only).

With the above, the Company has become the holding company and also a promoter of NEEPCO and THDCIL. 

14. Due to outbreak of COVID-19 globally and in India, the Company has made an initial assessment of its likely adverse impact on business and its associated financial risks.The Company is in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power (MOP), Government of India (GOI). By taking a number of proactive steps and keeping in view the safety of all its stakeholders, the Company has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown.
On the directions of MOP, the Central Electricity Regulatory Commission (CERC) issued an order dated 3 April 2020 whereby it directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. if any delayed payment beyond 45 days from the date of presentation of the bills falls between  24 March 2020 and 30 June 2020. Accordingly, the LPSC for the year 2020-21 is expected to be lower by Rupee 58.00 crore approximately.Further as per the directions of  MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under theAtmanirbhar Bharat special economic and comprehensive package, the Company has decided to defer the capacity charges of Rupee2,064.00 crore to DISCOMs for the lock-down period on account of COVID-19 pandemic for the power not scheduled by the DISCOMs, to be payable without interest after the end of the lockdown period in three equal monthly instalments and has allowed a rebate of Rupee 1,363.00 crore on the capacity charges billed during the lock-down period to DISCOMs on account of COVID-19, in the financial year 2020-21. These amounts are provisional and may vary due to reconciliation of related data. Due to the above, there is no material impact on the profits of the Company for the year ended 31 March 2020.
The Company believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Company's ability to continue as a going concern and meeting its liabilities as and when they fall due. Impact assessment of COVID-19 is a continuing process considering the uncertainty involved thereon. The company will continue to closely monitor any material changes to the future economic conditions. 

15. Formula used for computation of coverage ratios DSCR  = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings)  and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

16. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

17. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

18. Previous periods figures have been reclassified wherever considered necessary.

 

STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2020

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.03.2020 (Unaudited)Quarter ended 31.12.2019 (Unaudited)Quarter ended 31.03.2019 (Unaudited)Year 
ended 31.03.2020 (Audited)
Year 
ended 31.03.2019  (Audited)
1234567
1Income      
 (a) Revenue from operations30201.0826561.4023800.23109464.04100286.54
 (b) Other income1114.24573.891625.902908.542246.51
 Total income (a+b)31315.3227135.2925426.13112372.58102533.05
2Expenses     
 (a) Fuel cost15804.0913258.7812601.7957185.6254395.78
 (b) Electricity purchased for trading1447.511074.341336.315185.955288.12
 (c) Employee benefits expense1624.041404.541561.865830.485816.65
 (d) Finance costs2211.302144.711136.548116.855604.65
 (e) Depreciation and amortisation expense2613.232782.411875.9310356.168669.03
 (f) Other expenses2984.852664.972741.049725.418105.12
 Total expenses (a+b+c+d+e+f)26685.0223329.7521253.4796400.4787879.35
3Profit before tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)4630.303805.544172.6615972.1114653.70
4Share of net profits of joint ventures accounted for using equity method50.2684.09266.56405.40672.17
5Profit  after  tax  before  Regulatory  deferral  account
balances (3+4)
4680.563889.634439.2216377.5115325.87
6Tax expense:     
 (a)Current tax (refer Note 6)3417.81749.991022.685526.533287.44
 (b)Deferred tax1530.311293.58(8487.87)3821.01(6067.38)
 Total tax expense (a+b)4948.122043.57(7465.19)9347.54(2779.94)
7Profit after tax before Regulatory deferral
account balances (5-6)
(267.56)1846.0611904.417029.9718105.81
8Net movement in Regulatory deferral account balances (net of tax)1791.331579.39(6743.02)4872.01(4071.32)
9Profit for the period (7+8)1523.773425.455161.3911901.9814034.49
10Other comprehensive income     
 (a) Items that will not be reclassified to profit or loss     
  (i)Net   actuarial   gains/(losses)   on   defined benefit plans(171.80)(67.02)(269.32)(372.10)(238.93)
  (ii)Net  gains/(losses)  on  fair  value  of  equity
instruments
(21.36)0.30(23.28)(41.64)(16.74)
  (iii)Share of other comprehensive income of joint ventures accounted for under the equity method0.74(0.34)(0.67)(0.50)(1.07)
 Income tax on items that will not be reclassfied to profit or loss     
  (i)Net   actuarial   gains/(losses)   on   defined benefit plans32.7611.2753.9766.5251.89
 (b) Items that will be reclassified to profit or loss     
  (i)Exchange   differences   on   translation   of foreign operations31.403.11(3.28)40.0011.67
 Other comprehensive income (net of tax) (a+b)(128.26)(52.68)(242.58)(307.72)(193.18)
11Total   comprehensive   income   for   the   period (9+10)1395.513372.774918.8111594.2613841.31
12Profit attributable to owners of the parent company1442.573332.425087.2311600.2313736.68
13Profit attributable to non-controlling interest81.2093.0374.16301.75297.81
14Other comprehensive income/(expense) attributable to owners of the parent(124.75)(52.38)(239.99)(303.43)(192.15)
15Other comprehensive income/(expense) attributable to non controlling interest(3.51)(0.30)(2.59)(4.29)(1.03)
16Paid-up equity share capital (Face value of share Rupee 10/- each)9894.569894.569894.569894.569894.56
17Paid-up debt capital$   184073.44155689.38
18Other  equity  excluding  revaluation  reserve  as  per balance sheet   108944.60101461.65
19Net worth*   118237.09110715.71
20Debenture redemption reserve   7700.978597.97
21Earnings    per    share    (of    Rupee    10/-    each)    -    (not annualised)  (including  net  movement  in  regulatory deferral account balances): Basic and Diluted (in Rupee)1.463.375.1411.7213.88
22Earnings    per    share    (of    Rupee    10/-    each)    -    (not annualised)  (excluding  net  movement  in  regulatory deferral account balances): Basic and Diluted (in Rupee)(0.35)1.7711.966.8018.00
23Debt equity ratio   1.561.41
24Debt service coverage ratio (DSCR)   1.972.34
25Interest service coverage ratio (ISCR)   4.345.31

$ Comprises long term debts
* Excluding Fly ash utilization reserve and Corporate social responsibility reserve
See accompanying notes to the financial results.

 

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES

(Rupee Crore)

Sl.No.ParticularsAs at
31.03.2020
(Audited)
As at
31.03.2019
(Audited)
AASSETS  
1Non-current assets  
 (a) Property, plant and equipment187176.46150555.42
 (b) Capital work-in-progress98210.94117998.23
 (c) Intangible assets626.33429.11
 (d) Intangible assets under development297.53398.63
 (e) Investments accounted for using the equity method9256.318040.39
 (f) Financial assets  
     (i) Investments50.2891.92
     (ii) Loans511.08476.13
     (iii) Other financial assets1227.881302.70
 (g) Other non-current assets13726.7215494.22
 Sub-total - Non-current assets311083.53294786.75
2Current assets  
 (a) Inventories11138.548251.62
 (b) Financial assets  
     (i) Trade receivables20370.8012363.52
     (ii) Cash and cash equivalents589.52323.74
     (iii) Bank balances other than cash and cash equivalents2624.772609.69
     (iv) Loans252.67248.16
     (v) Other financial assets13027.809081.24
 (c) Current tax assets (Net)83.2623.21
 (d) Other current assets8818.5115345.20
 Sub-total - Current assets56905.8748246.38
3Regulatory deferral account debit balances9397.733628.03
 TOTAL - ASSETS377387.13346661.16
BEQUITY AND LIABILITIES  
1Equity  
 (a) Equity share capital9894.569894.56
 (b) Other equity108944.60101461.65
 Total equity attributable to the owners of the parent118839.16111356.21
 Non controlling interest3317.192908.20
 Sub-total - Total equity122156.35114264.41
2Liabilities  
(i)Non-current liabilities  
 (a) Financial liabilities  
     (i)   Borrowings176020.02147063.71
     (ii)  Trade payables  
         - Total outstanding dues of micro and small enterprises10.356.41
         - Total outstanding dues of creditors other than micro and small enterprises57.7541.80
     (iii) Other financial liabilities1404.451977.80
 (b) Provisions1169.171141.73
 (c) Deferred tax liabilities (net)7617.113928.11
 Sub-total -  Non-current liabilities186278.85154159.56
(ii)Current liabilities  
 (a) Financial liabilities  
     (i)   Borrowings16556.2317368.85
     (ii)  Trade payables  
         - Total outstanding dues of micro and small enterprises512.24365.02
         - Total outstanding dues of creditors other than micro and small enterprises9596.348249.30
     (iii) Other financial liabilities28646.9640173.22
 (b) Other current liabilities1736.711079.56
 (c) Provisions7287.917308.41
 (d) Current tax liabilities (net)1.71108.19
 Sub-total - Current liabilities64338.1074652.55
3Deferred revenue4613.833584.64
 TOTAL - EQUITY AND LIABILITIES377387.13346661.16

 

CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND YEAR ENDED 31 MARCH

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.03.2020 (Unaudited)Quarter ended 31.12.2019 (Unaudited)Quarter ended 31.03.2019 (Unaudited)Year 
ended 31.03.2020 (Audited)
Year 
ended 31.03.2019  (Audited)
1234567
1Segment revenue     
 - Generation29708.9925890.6823836.15106441.6196520.36
 - Others2536.652148.851947.839425.867636.59
 - Less: Inter segment elimination955.58930.51488.293657.021823.71
  31290.0627109.0225295.69112210.45102333.24
 - Unallocated25.2626.27130.44162.13199.81
 Total31315.3227135.2925426.13112372.58102533.05
2Segment results (Profit before tax and interest)     
 - Generation9300.998046.77(2075.76)30688.9216286.30
 - Others149.58108.6589.98605.39383.84
 Total9450.578155.42(1985.78)31294.3116670.14
 Less:     
 (i) Unallocated finance costs2211.302144.711136.548116.855604.65
 (ii) Other unallocable expenditure net of unallocable income365.50203.34254.04895.87823.07
 Profit before tax (including regulatory deferral account balances)6873.775807.37(3376.36)22281.5910242.42
3Segment assets     
 - Generation249707.52230136.49193688.62249707.52193688.62
 - Others8496.378190.436587.898496.376587.89
 - Unallocated119525.64131823.82146708.03119525.64146708.03
 - Less: Inter segment elimination342.40485.36323.38342.40323.38
 Total377387.13369665.38346661.16377387.13346661.16
4Segment liabilities     
 - Generation25614.7625873.3822585.3225614.7622585.32
 - Others5254.415037.444399.115254.414399.11
 - Unallocated228021.20220723.28208643.90228021.20208643.90
 - Less: Inter segment elimination342.40485.36323.38342.40323.38
 Total258547.97251148.74235304.95258547.97235304.95
The operations of the Company are mainly carried out within the country and therefore, there is no reportable geographical segment.
 

CONSOLIDATED STATEMENT OF CASH FLOWS

(Rupee Crore)

Sl.No.ParticularsYear ended 31.03.2020
(Audited)
Year ended 31.03.2019
(Audited)
A.CASH FLOW FROM OPERATING ACTIVITIES  
 Profit before tax16377.5115325.87
 Add: Net movements in regulatory deferral account balances (net of tax)4872.01(4071.32)
 Add: Tax on net movements in regulatory deferral account balances1032.07(1012.13)
 Profit before tax including movements in regulatory deferral account balances22281.5910242.42
 Adjustment for:  
 Depreciation and amortisation expense10356.168669.03
 Provisions421.121071.88
 Share of net profits of joint ventures accounted for using equity method(405.40)(672.17)
 Deferred revenue on account of advance against depreciation-(74.35)
 Deferred revenue on account of government grants(91.54)(136.59)
 Deferred foreign currency fluctuation asset(1072.34)(241.62)
 Deferred income from foreign currency fluctuation1340.04371.78
 Regulatory deferral account debit balances(5904.08)5083.45
 Fly ash utilisation reserve fund(38.39)6.90
 Exchange differences on translation of foreign currency cash and cash equivalents0.030.01
 Finance costs8060.615584.25
 Unwinding of discount on vendor liabilities56.2420.40
 Interest/income on term deposits/bonds/investments(56.89)(63.70)
 Dividend income(4.80)(4.80)
 Provisions written back(484.06)(389.84)
 Profit on de-recognition of property, plant and equipment(12.59)(2.98)
 Loss on de-recognition of property, plant and equipment64.19174.54
  12228.3019396.19
 Operating profit before working capital changes34509.8929638.61
 Adjustment for:  
 Trade receivables(8092.46)(1906.79)
 Inventories(2309.68)(1665.41)
 Trade payables, provisions, other financial liabilities and other liabilities1524.12502.42
 Loans, other financial assets and other assets2558.22(4418.36)
  (6319.80)(7488.14)
 Cash generated from operations28190.0922150.47
 Income taxes (paid) / refunded(3606.87)(3464.82)
 Net cash from/(used in) operating activities - A24583.2218685.65
B.CASH FLOW FROM INVESTING ACTIVITIES  
 Purchase of  property, plant and equipment & intangible assets(18230.44)(21606.90)
 Disposal of property, plant and equipment & intangible assets167.9378.75
 Investment in joint venture companies(764.98)(123.30)
 Consideration paid towards acquisition of NEEPCO and THDCIL(11500.00)-
 Payment for business acquisition-(2145.33)
 Acquisition of subsidiary, net of cash acquired-(1689.42)
 Interest/income on term deposits/bonds/investments received65.9051.55
 Income tax paid on interest income(40.79)(40.44)
 Dividend received from other investments4.804.80
 Bank balances other than cash and cash equivalents(24.09)1407.02
 Net cash from/(used in) investing activities - B(30321.67)(24063.27)
C.CASH FLOW FROM FINANCING ACTIVITIES  
 Proceeds from non-current borrowings33653.1427707.79
 Repayment of non-current borrowings(9583.31)(14468.79)
 Proceeds from current borrowings(812.62)9841.50
 Payment of lease liabilities(78.71)(8.51)
 Interest paid(13399.15)(11491.60)
 Dividend paid(3133.37)(5460.67)
 Tax on dividend(641.72)(1115.21)
 Changes in ownership interest in subsidiary company-(77.76)
 Net cash from/(used in) financing activities - C6004.264926.75
D.Exchange differences on translation of foreign currency cash and cash equivalents(0.03)(0.01)
 Net increase/(decrease) in cash and cash equivalents (A+B+C+D)265.78(450.88)
 Cash and cash equivalents at the beginning of the period323.74774.62
 Cash and cash equivalents at the end of the period589.52323.74

Notes to Consolidated Financial Results:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 27 June 2020 and approved by the Board of Directors in their meeting held on the same day.

2. The consolidated financial statements of the Company for the year ended 31 March 2020 have been prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013. The statutory auditors have issued unmodified opinion on these consolidated financial statements. The audited accounts are subject to review by the Comptroller and Auditor General of India under Section 143(6) of the Companies Act, 2013.

3. The subsidiary and joint venture companies considered in the consolidated financial results are as follows:

a)Subsidiary CompaniesOwnership (%)
1NTPC Electric Supply Company Ltd.100.00
2NTPC Vidyut Vyapar Nigam Ltd.100.00
3Kanti Bijlee Utpadan Nigam Ltd.100.00
4Nabinagar Power Generating Company Ltd.100.00
5Bhartiya Rail Bijlee Company Ltd.74.00
6Patratu Vidyut Utpadan Nigam Ltd.74.00
7North Eastern Electric Power Corporation Ltd.100.00
8THDC India Limited74.496
9NTPC Mining Ltd. (Incorporated on 29 August 2019)100.00
b)Joint Venture Companies 
1Utility Powertech Ltd.50.00
2NTPC GE Power Services Private Ltd.*50.00
3NTPC SAIL Power Company Ltd.50.00
4NTPC Tamilnadu Energy Company Ltd.50.00
5Ratnagiri Gas and Power Private Ltd.*25.51
6Aravali Power Company Private Ltd.50.00
7Meja Urja Nigam Private Ltd.50.00
8NTPC BHEL Power Projects Private Ltd.*50.00
9National High Power Test Laboratory Private Ltd.*20.00
10Transformers and Electricals Kerala Ltd.*44.60
11Energy Efficiency Services Ltd.*47.15
12CIL NTPC Urja Private Ltd.*50.00
13Anushakti Vidhyut Nigam Ltd.*49.00
14Hindustan Urvarak and Rasayan Ltd.29.67
15Konkan LNG Ltd.14.82
16Trincomalee Power Company Ltd.*50.00
17Bangladesh-India Friendship Power Company Private Ltd.*50.00

All the above Companies are incorporated in India except Companies at Sl. No.16 and 17 which are incorporated in Srilanka and Bangladesh respectively.

* The financial  statements are un-audited and certifed by the management of respective companies and have been considered for consolidated financial statements of the Group. The figures appearing in their respective financial statements may change upon completion of their audit.

a) (i) During the quarter, the Company has acquired legal and beneficial ownership of 3,60,98,09,800 equity shares held by the President of India in North Eastern Electric Power Corporation Ltd. (NEEPCO) and the acquisition of beneficial ownership in 600 equity shares held by the nominees of the President of India in NEEPCO (collectively representing 100% of the total paid up share capital of NEEPCO) for an aggregate consideration of Rupee 4000.00 crore (Rupees Four Thousand Crore only). 

(ii) During the quarter, the Company has acquired legal and beneficial ownership of 2,73,09,406 equity shares held by the President of India in THDC India Limited (THDCIL) and the acquisition of beneficial ownership in 6 equity shares held by the nominees of the President of India in THDCIL (collectively representing 74.496% of the total paid up share capital of THDCIL) for an aggregate consideration of Rupee 7500.00 crore (Rupees Seven Thousand Five Hundred Crore only).

(iii) With the above, NTPC Limited has become the holding company and also a promoter of NEEPCO and THDCIL. 

b) Being a common control acquisition, the accounting has been done as per Appendix C to lnd AS 103 "Business Combination" as per pooling of interest method under which assets and liabilities of the combining entities are reflected at the carrying amounts and no adjustments are made to reflect fair values, or recognize any new assets or liabilities. Further, restatement of previous year financial statements has been done as if the business combination had occurred from the beginning of preceding period in compliance with Appendix C of Ind AS 103 'Business Combination'. Accordingly, the Consolidated Balance Sheet as at March 31, 2019, Consolidated Statement of Profit and loss, Consolidated Statement of Changes in Equity and Consolidated Statement of Cash Flows for the year ended 31 March 2019 have been restated.  The difference between the share capital of these companies and the consideration paid has been recognized as 'Çapital reserve-common control' as at April 1, 2018. Further, the total cash consideration for acquisition of these companies amounting to Rupee11,500 crore paid in March 2020  has been considered as current liability of the previous year and disclosed under 'Current liabilities-Other financial liabilities'.

5 a) (i) The CERC notified the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 7 March 2019 (Regulations, 2019) for determination of tariff for the tariff period 2019-2024. Pending issue of provisional/final tariff orders with effect from 1 April 2019, capacity charges are billed to beneficiaries in accordance with the tariff approved and applicable as on 31 March 2019, as provided in Regulations, 2019. In case of projects declared commercial w.e.f. 1 April 2019 and projects where tariff applicable as on 31 March 2019 is pending from CERC, billing is done based on capacity charges as filed with CERC in the tariff petitions. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed  is  Rupee 98,806.47 crore (31 March 2019: Rupee 93,074.69 crore).

(ii) Sales have been provisionally recognized at Rupee 1,03,362.52 crore (31 March 2019: Rupee 98,380.43 crore) on the said basis.

b) Sales  include Rupee 1,768.88 crore  (31 March 2019: (-) Rupee 0.02 crore) on account of income tax recoverable from / (refundable) to the beneficiaries as per Regulations, 2004. The current year amount is on account of income tax liability determined under Vivad se Vishwas Scheme notified under Direct Tax Vivad se Vishwas Act 2020. Sales also include Rupee 92.79 crore (31 March 2019: Rupee 101.03 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

c) Sales include Rupee 60.93 crore (31 March 2019: (-) Rupee 2,235.15 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL). 

d) Revenue from operations for the year ended 31 March 2020 include Rupee 7,303.06 crore (31 March 2019: Rupee 7,371.31 crore) on account of sale of energy through trading.

6. Provision for current tax for the year ended 31 March 2020 includes Rupee 2,743.64 crore (31 March 2019: (-) Rupee 103.81 crore) being tax related to earlier years. This inclues additional tax provision amounting to Rupee 2,723.57 crore, as some of the Group companies have decided to settle pending Income Tax disputes by opting under the Vivad se Vishwas Scheme notified by the Government through ‘The Direct Tax  Vivad Se Vishwas Act, 2020’. The Group companies are in the process of completion of procedural formalities under the scheme and settlement of pending balances will be carried out on completion of such formalities.

7. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's project consisting of three units of 800 MW each, was challenged before the National Green Tribunal (NGT). The NGT disposed off the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgement of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. All the units of the project have been declared commercial in the earlier years.  The carrying cost of the project as at  31 March 2020 is Rupee 15,662.28 crore (31 March 2019: Rupee 15,598.80 crore). Management is confident that the approval for the project shall be granted, hence no provision is considered necessary.

8. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2020 is Rupee 163.40 crore (31 March 2019: Rupee 163.33 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

9. An amount of  Rupee 749.01 crore (31 March 2019: Rupee 719.71 crore) has been incurred upto 31 March 2020 in respect of one of the hydro power projects of the Company, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI, which includes Rupee 439.57 crore (31 March 2019: Rupee 413.40 crore) in respect of arbitration awards challenged by the Company before the Hon'ble High Court of Delhi. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against provisions made in this regard. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

10. The Company had entered into an agreement for movement of coal through inland waterways for one of its stations. As per the agreement, the operator was to design, finance, build, operate and maintain the unloading and material handling infrastructure for 7 years after which it was to be transferred to the Company at 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. Based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India, an amount of Rupee356.31 crore was paid upto 31 March 2019. In the previous year, the Arbitral Tribunal had awarded a claim of Rupee 1,891.09 crore plus applicable interest in favour of the operator. The Company aggrieved by the arbitral award and considering legal opinion obtained, had filed an appeal before the Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety. Considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, Significant Accounting Policies of the Company and the principle of conservatism, an amount of Rupee 394.07 crore was estimated and provided for as at 31 March 2019 and balance amount of Rupee 1,875.73 crore was disclosed as contingent liability, along with applicable interest.

During the year, against the appeal of the Company, Hon'ble High Court vide its order dated 23 September 2019 held that subject to deposit of Rupee 500 crore by the Company with the Registrar General of the Court within six weeks, execution of the impugned award shall remain stayed till the next date of hearing and upon handing over the entire infrastructure in terms of the contract by the operator to the Company, the Registrar General shall release the amount to the operator against a bank guarantee. The said amount was deposited with the Hon'ble High Court on 5 November 2019. Hon'ble High Court vide its order dated 8 January 2020 directed the parties to commence formal handing over of the infrastructure in the presence of appointed Local Commissioner and also, directed release of Rupee 500 crore to the operator by the Registrar General subject to the outcome of this application of the Company for formal handing over of the infrastructure.  On 17 January 2020, unconditional BG was submitted by the operator to Registrar General and Rupee 500 crore was released to operator by the Hon’ble High Court. Further,Rupee 356.31 crore paid to operator has been booked to fuel cost and the corresponding provision has been reversed during the current year.

As per orders of Hon'ble High Court, formal handing over of the infrastructure has started on 20 January 2020 at the project site. However, due to certain law and order issues initially and further due to COVID-19 pandemic, Local Commissioner’s visit has been deferred.The handing over of the infrastructure facility has not yet completed.

Pending final disposal of the appeal by the Hon’ble High Court, considering the provisions of Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and Significant Accounting Policies of the Company, provision has been updated by interest to Rupee 37.92 crores as at 31 March 2020 (31 March 2019:Rupee 394.07 crore) and the balance amount of Rupee 2,014.84 crore (31 March 2019: Rupee 1,875.73 crore) has been disclosed as contingent liability.

11. During the year, thermal power units of one 800 MW at Gadarwara w.e.f. 1 June 2019, one 800 MW at Lara w.e.f. 1 October 2019, one 660 MW at Tanda w.e.f. 7 November 2019, one 660 MW at Khargone w.e.f. 1 February 2020, one 800 MW at Darlipalli w.e.f. 1 March 2020 and one 250 MW at Barauni w.e.f. 1 March 2020 have been declared commercial. Further, the Pakri Barwadih Coal Mine has been declared commercial w.e.f. 1 April 2019.

12. During the quarter, the Company has paid an interim dividend of Rupee 0.50 per equity share (par value Rupee 10/- each) for the financial year 2019-20. The Board of Directors has recommended final dividend of Rupee 2.65 per equity share (par value Rupee 10/- each). The total dividend (including interim dividend) for the financial year 2019-20 is Rupee 3.15 per equity share (par value Rupee 10/- each).

13. The Group has adopted Ind AS 116 'Leases' effective 1 April 2019, using modified retrospective approach and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments and right of use assets has been recognized at an amount equal to the lease liabilities. Application of Ind AS 116 does not have any material impact on the financial results of the Group.

14. Due to outbreak of COVID-19 globally and in India, the Group has made an initial assessment of itslikely adverse impact on business and its associated financial risks.The Group is mainly in the business of generation and sale of electricity which is an essential service as emphasized by the Ministry of Power (MOP), Government of India (GOI). By taking a number of proactive steps and keeping in view the safety of all its stakeholders, the Group has ensured the availability of its power plants to generate power and has continued to supply power during the period of lockdown.

On the directions of MOP, the Central Electricity Regulatory Commission (CERC) issued an order dated 3 April 2020 whereby it directed that Late Payment Surcharge (LPSC) shall apply at a reduced rate of 12% p.a. instead of the normal rate of 18% p.a. if any delayed payment beyond 45 days from the date of presentation of the bills falls between  24 March 2020 and 30 June 2020. Accordingly, the LPSC for the year 2020-21 is expected to be lower by Rupee 58.88 crore approximately.Further as per the directions of  MOP dated 15 & 16 May 2020, issued in accordance with the announcement of GOI under theAtmanirbhar Bharat special economic and comprehensive package, the Group has decided to defer the capacity charges of Rupee2,670.30 crore to DISCOMs for the lock-down period on account of COVID-19 pandemic for the power not scheduled by the DISCOMs, to be payable without interest after the end of the lockdown period in three equal monthly instalments and has allowed a rebate of Rupee1,586.70 crore on the capacity charges billed during the lock-down period to DISCOMs on account of COVID-19, in the financial year 2020-21. These amounts are provisional and may vary due to reconciliation of related data. Due to the above, there is no material impact on the profits of the Company for the year ended 31 March 2020.

The Group believes that the impact due to the outbreak of COVID-19 is likely to be short-term in nature and does not anticipate any medium to long-term risks in the Group's ability to continue as a going concern and meeting its liabilities as and when they fall due.

16. Formula used for computation of coverage ratios DSCR  = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transfer to expenditure during construction + Scheduled principal repayments of the long term borrowings)  and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transfer to expenditure during construction).

17. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on property, plant and equipment through English/Equitable mortgage as well as hypothecation of movable assets of the Company.

18. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year, read with Note no.4 above.

19. Previous periods figures have been reclassified wherever considered necessary.

For and on behalf of the Board of Directors

Place: New Delhi
Date: 27 June, 2020

(A.K.Gautam)
DIRECTOR (FINANCE)
DIN:08293632