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« Back STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2018

Sl. No. | Particulars | Standalone | Consolidated | |||||||
---|---|---|---|---|---|---|---|---|---|---|
Quarter ended 31.03.2018 (Unaudited) | Quarter ended 31.12.2017 (Unaudited) | Quarter ended 31.03.2017 (Unaudited) | Year ended 31.03.2018 (Audited) | Year ended 31.03.2017 (Audited) | Year ended 31.03.2018 (Audited) | Year ended 31.03.2017 (Audited) | ||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | ||
1 | Income | |||||||||
(a) | Revenue from operations | 23100.26 | 20774.37 | 20416.67 | 83452.70 | 78273.44 | 88083.31 | 82042.49 | ||
(b) | Other income | 517.57 | 313.47 | 470.18 | 1755.25 | 1068.86 | 1558.28 | 966.82 | ||
Total income (a+b) | 23617.83 | 21087.84 | 20886.85 | 85207.95 | 79342.30 | 89641.59 | 83009.31 | |||
2 | Expenses | |||||||||
(a) | Fuel cost | 12569.67 | 12406.89 | 11946.42 | 48315.47 | 47572.19 | 48992.80 | 47947.77 | ||
(b) | Energy purchased for trading | 528.63 | 386.05 | - | 1313.51 | - | 4323.49 | 3037.88 | ||
(c) | Employee benefits expense | 1368.21 | 1294.26 | 1637.69 | 4734.67 | 4324.60 | 4791.97 | 4375.54 | ||
(d) | Finance costs | 1104.17 | 1065.01 | 897.92 | 3984.25 | 3597.20 | 4434.59 | 3651.08 | ||
(e) | Depreciation, amortisation and impairment expense | 1934.81 | 1881.37 | 1606.17 | 7098.86 | 5920.82 | 7459.93 | 6009.91 | ||
(f) | Other expenses | 2723.77 | 1410.17 | 1369.81 | 7421.73 | 5092.38 | 7554.59 | 5185.51 | ||
Total expenses (a+b+c+d+e+f) | 20229.26 | 18443.75 | 17458.01 | 72868.49 | 66507.19 | 77557.37 | 70207.69 | |||
3 | Profit before exceptional items & tax (1-2) | 3388.57 | 2644.09 | 3428.84 | 12339.46 | 12835.11 | 12084.22 | 12801.62 | ||
4 | Share of net profits of joint ventures accounted for using equity method | 445.05 | 624.71 | |||||||
5 | Profit before exceptional items and tax after share of net profit of joint ventures accounted for using equity method (3+4) | 3388.57 | 2644.09 | 3428.84 | 12339.46 | 12835.11 | 12529.27 | 13426.33 | ||
6 | Exceptional items - impairment loss on investment | - | - | 782.95 | - | 782.95 | - | - | ||
7 | Profit before tax (5-6) | 3388.57 | 2644.09 | 2645.89 | 12339.46 | 12052.16 | 12529.27 | 13426.33 | ||
8 | Tax expense: | |||||||||
(a) | Current tax (refer note 4) | 195.12 | 37.17 | 706.30 | 1625.50 | 2598.19 | 1664.86 | 2643.31 | ||
(b) | Deferred tax | 793.74 | 607.87 | (108.29) | 3631.64 | 1287.31 | 3988.08 | 1284.47 | ||
(c) | Less: Deferred asset for deferred tax liability (refer note 10) | 226.19 | 408.41 | (253.10) | 2707.85 | 954.68 | 3064.80 | 952.68 | ||
Total tax expense (a+b-c) | 762.67 | 236.63 | 851.11 | 2549.29 | 2930.82 | 2588.14 | 2975.10 | |||
9 | Profit after tax from continuing operations (7-8) | 2625.90 | 2407.46 | 1794.78 | 9790.17 | 9121.34 | 9941.13 | 10451.23 | ||
10 | Net movement in Regulatory deferral account balances (net of tax) | 299.69 | (46.65) | 284.62 | 553.00 | 263.92 | 560.37 | 262.71 | ||
11 | Profit for the year (9+10) | 2925.59 | 2360.81 | 2079.40 | 10343.17 | 9385.26 | 10501.50 | 10713.94 | ||
12 | Other comprehensive income/(expense) | |||||||||
(a) | Items that will not be reclassified to profit or loss (net of tax) | |||||||||
(i) | Net acturial gains/(losses) on defined benefit plans | 73.18 | (28.40) | (108.02) | (7.28) | (238.66) | (7.28) | (238.66) | ||
(ii) | Net gains/(losses) on fair value of equity instruments | (37.56) | (4.98) | 23.94 | (7.20) | 35.28 | (7.20) | 35.28 | ||
(iii) | Share of other comprehensive income of joint ventures accounted for under the equity method | (0.16) | (1.41) | |||||||
(b) | Items that will be reclassified to profit or loss (net of tax) | |||||||||
Exchange differences on translation of foreign operations | (6.05) | (8.06) | ||||||||
Other comprehensive income/(expense) (net of tax) (a+b) | 35.62 | (33.38) | (84.08) | (14.48) | (203.38) | (20.69) | (212.85) | |||
13 | Total comprehensive income (11+12) | 2961.21 | 2327.43 | 1995.32 | 10328.69 | 9181.88 | 10480.81 | 10501.09 | ||
14 | Profit attributable to owners of the parent | 10543.95 | 10719.64 | |||||||
15 | Profit attributable to non-controlling interest | (42.45) | (5.70) | |||||||
16 | Other comprehensive income/(expense) attributable to owners of the parent | (20.69) | (212.85) | |||||||
17 | Other comprehensive income/(expense) attributable to non controlling interest | - | - | |||||||
18 | Paid-up equity share capital (Face value of share ![]() | 8245.46 | 8245.46 | 8245.46 | 8245.46 | 8245.46 | 8245.46 | 8245.46 | ||
19 | Paid-up debt capital* | 115104.29 | 103839.65 | 123368.18 | 110653.66 | |||||
20 | Reserves excluding revaluation reserve as per balance sheet | 93532.31 | 87985.77 | 95318.01 | 89592.56 | |||||
21 | Net worth** | 101146.56 | 95674.55 | 102932.02 | 97281.12 | |||||
22 | Debenture redemption reserve | 7274.56 | 5961.81 | 7274.56 | 5961.81 | |||||
23 | Earnings per share (for continuing operation) - (of ![]() ![]() | |||||||||
(a) | Basic | 3.54 | 2.86 | 2.52 | 12.54 | 11.38 | 12.79 | 13.00 | ||
(b) | Diluted | 3.54 | 2.86 | 2.52 | 12.54 | 11.38 | 12.79 | 13.00 | ||
24 | Earnings per share (for continuing operation) - (of ![]() ![]() | |||||||||
(a) | Basic | 3.18 | 2.92 | 2.18 | 11.87 | 11.06 | 12.11 | 12.68 | ||
(b) | Diluted | 3.18 | 2.92 | 2.18 | 11.87 | 11.06 | 12.11 | 12.68 | ||
25 | Debt equity ratio | 1.14 | 1.09 | 1.20 | 1.14 | |||||
26 | Debt service coverage ratio (DSCR) | 2.14 | 1.52 | 2.15 | 1.57 | |||||
27 | Interest service coverage ratio (ISCR) | 5.93 | 6.40 | 5.56 | 6.51 |
* Comprises long term debts
** Excluding flyash utilization reserve and corporate social responsibility reserve
See accompanying notes to the financial results.
STATEMENT OF ASSETS AND LIABILITIES

Sl.No. | Particulars | Standalone | Consolidated | ||||
---|---|---|---|---|---|---|---|
As at 31.03.2018 (Audited) | As at 31.03.2017 (Audited) | As at 31.03.2018 (Audited) | As at 31.03.2017 (Audited) | ||||
A | ASSETS | ||||||
1 | Non-current assets | ||||||
(a) Property, plant and equipment | 120720.61 | 99062.70 | 129206.70 | 104238.54 | |||
(b) Capital work-in-progress | 77313.87 | 80302.46 | 81623.70 | 86461.08 | |||
(c) Intangible assets | 331.60 | 293.02 | 331.76 | 293.12 | |||
(d) Intangible assets under development | 469.36 | 434.63 | 469.36 | 434.63 | |||
(e) Investments in subsidiary and joint venture companies | 9941.20 | 8134.63 | - | - | |||
(f) Investments accounted for using the equity method | - | - | 8769.33 | 7500.44 | |||
(g) Financial assets | |||||||
(i) Investments | 106.28 | 113.48 | 106.28 | 113.48 | |||
(ii) Trade receivables | - | 35.59 | - | 35.59 | |||
(iii) Loans | 655.67 | 530.59 | 454.67 | 401.34 | |||
(iv) Other financial assets | 1632.86 | 1874.18 | 1600.86 | 1358.32 | |||
(h) Other non-current assets | 11568.68 | 16873.48 | 11810.89 | 17128.90 | |||
Sub-total - Non-current assets | 222740.13 | 207654.76 | 234373.55 | 217965.44 | |||
2 | Current assets | ||||||
(a) Inventories | 6057.38 | 6504.81 | 6140.29 | 6586.13 | |||
(b) Financial assets | |||||||
(i) Trade receivables | 7577.97 | 8137.92 | 8812.19 | 8963.89 | |||
(ii) Cash and cash equivalents | 60.49 | 157.12 | 388.11 | 363.83 | |||
(iii) Bank balances other than cash and cash equivalents | 3917.89 | 2773.37 | 3999.49 | 2937.63 | |||
(iv) Loans | 280.22 | 236.92 | 238.43 | 211.92 | |||
(v) Other financial assets | 7938.12 | 6053.32 | 8424.03 | 6128.92 | |||
(c) Other current assets | 10878.23 | 4536.44 | 11246.06 | 4816.77 | |||
Sub-total - Current assets | 36710.30 | 28399.90 | 39248.60 | 30009.09 | |||
3 | Regulatory deferral account debit balances | 743.13 | 522.83 | 745.91 | 522.83 | ||
TOTAL - ASSETS | 260193.56 | 236577.49 | 274368.06 | 248497.36 | |||
B | EQUITY AND LIABILITIES | ||||||
1 | Equity | ||||||
(a) Equity share capital | 8245.46 | 8245.46 | 8245.46 | 8245.46 | |||
(b) Other equity | 93532.31 | 87985.77 | 95318.01 | 89592.56 | |||
Total equity attributable to the owners of the parent | 101777.77 | 96231.23 | 103563.47 | 97838.02 | |||
Non controlling interest | - | - | 947.77 | 803.26 | |||
Sub-total - Total equity | 101777.77 | 96231.23 | 104511.24 | 98641.28 | |||
2 | Liabilities | ||||||
Non-current liabilities | |||||||
(a) Financial liabilities | |||||||
(i) Borrowings | 108697.60 | 97339.28 | 116775.81 | 104075.12 | |||
(ii) Trade payables | 23.31 | 13.17 | 23.31 | 13.17 | |||
(iii) Other financial liabilities | 2164.69 | 2247.13 | 2187.31 | 2355.69 | |||
(b) Provisions | 480.90 | 463.15 | 480.90 | 463.15 | |||
(c) Deferred tax liabilities (net) | 2408.63 | 1484.84 | 2408.14 | 1484.86 | |||
(d) Other non-current liabilities | - | 17.49 | - | 17.49 | |||
Sub-total - Non-current liabilities | 113775.13 | 101565.06 | 121875.47 | 108409.48 | |||
Current liabilities | |||||||
(a) Financial liabilities | |||||||
(i) Borrowings | 6500.32 | 3000.56 | 6680.38 | 3119.54 | |||
(ii) Trade payables | 5592.64 | 4876.08 | 6707.55 | 5572.70 | |||
(iii) Other financial liabilities | 21408.98 | 19179.40 | 22853.28 | 20392.82 | |||
(b) Other current liabilities | 963.99 | 1081.16 | 1156.87 | 1263.24 | |||
(c) Provisions | 8088.83 | 7964.92 | 8251.78 | 8120.73 | |||
(d) Current tax liabilities (net) | - | 75.20 | - | 81.40 | |||
Sub-total - Current liabilities | 42554.76 | 36177.32 | 45649.86 | 38550.43 | |||
3 | Deferred revenue | 2085.90 | 2121.14 | 2331.49 | 2406.84 | ||
4 | Regulatory deferral account credit balances | - | 482.74 | - | 489.33 | ||
TOTAL - EQUITY AND LIABILITIES | 260193.56 | 236577.49 | 274368.06 | 248497.36 |
AUDITED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND YEAR ENDED 31 MARCH 2018

Sl. No. | Particulars | Standalone | Consolidated | |||||
---|---|---|---|---|---|---|---|---|
Quarter ended 31.03.2018 (Unaudited) | Quarter ended 31.12.2017 (Unaudited) | Quarter ended 31.03.2017 (Unaudited) | Year ended 31.03.2018 (Audited) | Year ended 31.03.2017 (Audited) | Year ended 31.03.2018 (Audited) | Year ended 31.03.2017 (Audited) | ||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
1 | Segment revenue | |||||||
- Generation | 22685.78 | 20557.76 | 20698.56 | 82678.94 | 78861.92 | 84247.29 | 79547.92 | |
- Less: Inter segment elimination | (1892.49) | (2073.67) | ||||||
82354.80 | 77474.25 | |||||||
- Others | 679.96 | 449.07 | 39.67 | 1625.17 | 165.97 | 6662.10 | 5427.14 | |
- Less: Inter segment elimination | (50.61) | (38.33) | ||||||
6611.49 | 5388.81 | |||||||
- Unallocated | 252.09 | 81.01 | 148.62 | 903.84 | 314.41 | 675.30 | 146.25 | |
Total | 23617.83 | 21087.84 | 20886.85 | 85207.95 | 79342.30 | 89641.59 | 83009.31 | |
2 | Segment results (Profit before tax and interest) | |||||||
- Generation | 5448.26 | 3869.85 | 4951.64 | 17801.36 | 17765.47 | 18121.63 | 17805.74 | |
- Others | 84.79 | 31.93 | (11.41) | 157.64 | (64.51) | 252.79 | 60.06 | |
- Total | 5533.05 | 3901.78 | 4940.23 | 17959.00 | 17700.96 | 18374.42 | 17865.80 | |
Less | ||||||||
(i) Unallocated finance costs | 1104.17 | 1065.01 | 897.92 | 3984.25 | 3597.20 | 4434.59 | 3651.08 | |
(ii) Other unallocable expenditure net of unallocable income | 659.31 | 251.99 | 1034.36 | 932.25 | 1715.86 | 698.15 | 454.17 | |
Profit before tax (including regulatory deferral account balances) | 3769.57 | 2584.78 | 3007.95 | 13042.50 | 12387.90 | 13241.68 | 13760.55 | |
3 | Segment assets | |||||||
- Generation | 149277.18 | 149426.06 | 126728.63 | 149277.18 | 126728.63 | 159113.41 | 132682.79 | |
- Others | 4952.26 | 4273.87 | 3518.96 | 4952.26 | 3518.96 | 6715.07 | 5001.20 | |
- Un-allocated | 105964.12 | 94152.99 | 106329.90 | 105964.12 | 106329.90 | 108798.71 | 111242.64 | |
- Less: Inter segment elimination | (259.13) | (429.27) | ||||||
Total | 260193.56 | 247852.92 | 236577.49 | 260193.56 | 236577.49 | 274368.06 | 248497.36 | |
4 | Segment liabilities | |||||||
- Generation | 14988.40 | 14231.39 | 14531.36 | 14988.40 | 14531.36 | 17223.49 | 16460.69 | |
- Others | 2546.00 | 2414.20 | 2159.92 | 2546.00 | 2159.92 | 3955.50 | 3327.83 | |
- Un-allocated | 140881.39 | 129684.66 | 123654.98 | 140881.39 | 123654.98 | 149884.73 | 131300.09 | |
- Less:Inter segment elimination | (259.13) | (429.27) | ||||||
- Total | 158415.79 | 146330.25 | 140346.26 | 158415.79 | 140346.26 | 170804.59 | 150659.34 |
The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.
Notes:
1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 28 May 2018 and approved by the Board of Directors in the meeting held on the same day.
2. The subsidiary and joint venture companies considered in the consolidated financial results are as follows:
a) | Subsidiary Companies | Ownership (%) |
1 | NTPC Electric Supply Company Ltd. | 100.00 |
2 | NTPC Vidyut Vyapar Nigam Ltd. | 100.00 |
3 | Kanti Bijlee Utpadan Nigam Ltd. | 72.64 |
4 | Bhartiya Rail Bijlee Company Ltd. | 74.00 |
5 | Patratu Vidyut Utpadan Nigam Ltd. | 74.00 |
b) | Joint venture Companies | |
1 | Utility Powertech Ltd. | 50.00 |
2 | NTPC GE Power Services Private Ltd.* | 50.00 |
3 | NTPC SAIL Power Company Ltd. | 50.00 |
4 | NTPC Tamilnadu Energy Company Ltd. | 50.00 |
5 | Ratnagiri Gas and Power Private Ltd.* | 25.51 |
6 | Aravali Power Company Private Ltd. | 50.00 |
7 | Meja Urja Nigam Private Ltd. | 50.00 |
8 | NTPC-BHEL Power Projects Private Ltd.* | 50.00 |
9 | BF-NTPC Energy Systems Ltd. | 49.00 |
10 | Nabinagar Power Generating Company Private Ltd. | 50.00 |
11 | National High Power Test Laboratory Private Ltd.* | 20.00 |
12 | Transformers and Electricals Kerala Ltd.* | 44.60 |
13 | Energy Efficiency Services Ltd.* | 31.71 |
14 | CIL-NTPC Urja Pvt.Ltd.* | 50.00 |
15 | Anushakti Vidhyut Nigam Ltd.* | 49.00 |
16 | Hindustan Urvarak and Rasayan Ltd. | 33.33 |
17 | Konkan LNG Private Ltd.* | 25.51 |
18 | Trincomalee Power Company Ltd.* | 50.00 |
19 | Bangladesh-India Friendship Power Company Private Ltd.* | 50.00 |
All the above Companies are incorporated in India except Company at Sl.No.18 and 19 which are incorporated in Srilanka and Bangladesh respectively. | ||
* The financial statements are un-audited and certified 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. |
3. a) The CERC notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). The CERC has issued tariff orders for all the stations except six stations for the period 2014-19, under Regulations, 2014, and beneficiaries are billed based on such tariff orders issued by the CERC. For other stations, beneficiaries are billed in accordance with the principles given in the Regulations, 2014. The energy charges in respect of the coal based stations are provisionally billed based on the GCV of coal 'as received', measured at wagon top samples in respect of most of the stations barring a few on the grounds of safety issues, for the quantity supplied through conveyors/road and other difficulties. The amount provisionally billed is 80,670.65 crore (31 March 2017:
74,710.65 crore).
b) The Company has filed a writ petition before the Hon'ble Delhi High Court contesting certain provisions of the Regulations, 2014. As per directions from the Hon'ble High Court on the issue of point of sampling for measurement of GCV of coal on ‘as received’ basis, CERC has issued an order dated 25 January 2016 (subject to final decision of the Hon'ble High Court) that samples for measurement of coal on ‘as received’ basis should be collected from wagon top at the generating stations. The Company's review petition before the CERC in respect of the above order was dismissed vide their order dated 30 June 2016. Vide order dated 10 November 2016, the Hon'ble Delhi High Court has permitted the Company to approach the CERC with the difficulties being faced in implementation of the order of CERC in this regard and the Company has filed a petition with the CERC. Pending disposal of the petition by the CERC and ratification by the Hon'ble Delhi High Court, measurement of GCV of coal is being done from wagon top samples in respect of most of the stations barring a few on the grounds of safety issues, for the quantity supplied through conveyors/road and other difficulties.
Sales have been provisionally recognized at 79,683.50 crore (31 March 2017:
75,800.54 crore ) on the said basis.
c) Sales include 6.44 crore (31 March 2017:
995.59 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL). This includes reversal of sales amounting to
267.99 crore in respect of one of the stations, considering the directions issued by the CERC on 28 September 2017. Further, sales for the year amounting to
96.73 crore has not been recognised considering the said directions.
d) Sales include 210.33 crore (31 March 2017:
Nil) on account of income tax refundable to the beneficiaries as per Regulations, 2004. Sales also include
66.98 crore (31 March 2017:
46.04 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.
e). The commercial operation date (COD) of one of the stations of the Company declared by the Company as 14 November 2014 was challenged by one of its beneficiaries. CERC vide order dated 20 September 2017 directed to consider the COD of the said unit as 8 March 2016 in place of 14 November 2014. The Company filed an appeal against this order in APTEL which has been admitted. Pending disposal of the appeal and considering the said order of the CERC, sales of 248.75 crore recognized till 7 March 2016 has been reversed and balance amounting to
276.69 crore has been provided as 'Provision for tariff adjustment' for the period upto 31 March 2017. Sales for the current year has been recognized as per the said order.
4. Provision for current tax for the year includes tax related to earlier years amounting to (-) 951.30 crore (previous year (-)
107.56 crore).
5. During the year, one thermal unit of 800 MW at Kudgi w.e.f. 31 July 2017, one thermal unit of 660 MW at Mauda w.e.f. 18 September 2017, one thermal unit of 660 MW at Solapur w.e.f. 25 September 2017 and one thermal unit of 500 MW at Unchahar w.e.f. 30 September 2017, one thermal unit of 250 MW at Bongaigaon w.e.f. 01 November 2017, one thermal unit of 800 MW at Kudgi w.e.f. 31 December 2017 and 8 MW small hydro power project at Singrauli w.e.f. 5 March 2018 have been declared commercial. Further, 48 MW wind farm at Rojmal Wind Power Project and solar units of 250 MW at Mandsaur Solar PV Project have been commissioned at different dates.
6. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's ongoing project was challenged before the National Green Tribunal (NGT). The NGT disposed 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. Two units of 800 MW have been declared commercial during the year and the last unit of 800 MW capacity is on the verge of completion and expected to be declared commercial in the next financial year. Aggregate cost incurred on the project upto 31 March 2018 is 15,522.77 crore (31 March 2017:
14,461.58 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
7. 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 2018 is 163.23 crore (31 March 2017:
160.75 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.
8. Non-current assets - other financial assets includes 680.11 crore (31 March 2017:
619.34 crore) towards the cost incurred upto 31 March 2018 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI which includes
390.59 crore (31 March 2017:
332.38 crore) in respect of arbitration awards challenged by the Company before Hon'ble High Court. In the event the Hon'ble High Court grants relief to the Company, the amount would be adjusted against Current liabilities - Provisions. 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.
9. One of the 500 MW unit of a station which was declared commercial on 30 September 2017, met with an unfortunate accident in the boiler occurred due to pressurization of flue gas duct and boiler, damaging the first and second pass of the boiler along-with economizer, outlet duct and hoppers and the unit is under shut down. Payments made towards ex-gratia and treatment charges at various hospitals to the accident victims have been borne by the Company. The unit is covered under insurance policy of the Company against damage to the property. Based on the initial assessment of extent of damage and compensation paid to accident victims, a claim for 321.74 crore has been lodged with insurance company and accounted for. Discussions are taking place with the equipment supplier for carrying out necessary works for restoration of the unit. The unit is expected to resume operations in the later part of the financial year 2018-19.
10.Regulations, 2014 provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. Accordingly, deferred tax provided during the year ended 31 March 2018 on the generation income is accounted as 'Deferred asset for deferred tax liability'. Deferred asset for deferred tax liability for the year will be reversed in future years when the related deferred tax liability forms a part of current tax.
11. The Company had an investment of 974.30 crore as at 31 March 2017 in the equity shares of Ratnagiri Gas and Power Private Ltd. (RGPPL), a joint venture of the Company. During the year, the National Company Law Appellate Tribunal (‘NCLAT’) has approved the demerger scheme of RGPPL (‘Demerged Company’) with effective date of 1 January 2016 as a result of which all the assets and liabilities of the LNG Terminal (‘demerged undertaking’) have been transferred to Konkan LNG Private Ltd. ('Resulting Company') (KLPL) at book values.
Consequent to demerger, the Resulting Company has allotted equity shares of face value of 10/- each equivalent to the share entitlement ratio of 143:1000 for each equity shares held in Demerged Company i.e. 13,97,52,264 equity shares of
10/- each to the Company. Accordingly, the Company has reduced its investment in RGPPL by
139.75 crore and has recorded 'Investment in Konkan LNG Private Ltd.' with the same amount. Further, the provision for impairment loss in the equity investment of RGPPL of
782.95 crore as at 31 March 2017 has been bifurcated between RGPPL and KLPL at
643.20 crore and
139.75 crore respectively.
Considering the above and as required by Ind AS 36, an assessment of impairment of the investment in RGPPL and KLPL was carried out by an independent expert as at 31 March 2018. Based on the assement, the impairment loss recognised in the previous year in respect of RGPPL has been written back to the extent of 26.15 crore thereby reducing the provision for impairment in the value of investments in RGPPL to
617.05 crore and provision for impairment in the value of investments in KLPL has been retained at
139.75 crore. Consequently, the carrying value of investments in RGPPL and KLPL as at 31 March 2018 is
217.50 crore and
Nil respectively.
12. The pay revision of the employees of the Company is due w.e.f 1 January 2017. Department of Public Enterprises, GOI (DPE) had constituted the 3rd Pay Revision Committee (PRC) to review the structure of pay scales and allowances/benefits of various categories of Central Public Sector Enterprises. Based on the recommendations of the 3rd PRC, DPE has issued broad guidelines for pay revision. Based on proposal of the Company to GOI on 6 September 2017, presidential directive has been issued on 10 May 2018. Presidential directive states adherence of relevant DPE guidelines which requires approval of the Board of Directors (BOD) of the Company. Pending approval by the BOD, provision for pay revision has been recognised on an estimated basis amounting to 1,203.28 crore as at 31 March 2018 (31 March 2017:
260.24 crore) .
13. During the quarter, the Company has paid an interim dividend of 2.73 per equity share (par value
10/- each) for the year 2017-18. The Board of Directors has recommended final dividend of
2.39 per equity share (par value
10/- each). The total dividend (including interim dividend) for the financial year 2017-18 is
5.12 per equity share (par value
10/- each).
14. During the year, the Company has revised certain accounting policies for improved disclosures. There is no impact on accounts due to these changes.
15. The audited accounts are subject to review by the Comptroller and Auditor General of India under Section 143 (6) of the Companies Act, 2013.
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 + Principal repayment) 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 fixed assets through English/Equitable mortgage as well as hypothecation of movable assets of the Company.
18. Previous periods/year figures have been reclassified wherever considered necessary.
19. 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.
20. The standalone and consolidated financial statements of the Company for the year ended 31 March 2018 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 and the consolidated financial statements.
For and on behalf of Board of Directors
Place: New Delhi
Date: 28 May 2018
sd/-
(K.Sreekant)
DIRECTOR (FINANCE)