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« Back STATEMENT OF UNAUDITED STANDALONE & CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2019

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED  31 DECEMBER 2019

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.12.2019 (Unaudited)Quarter ended 30.09.2019 (Unaudited)Quarter ended 31.12.2018 (Unaudited)Nine months ended 31.12.2019 (Unaudited)Nine months ended 31.12.2018 (Unaudited)Year 
ended 31.03.2019  (Audited)
12345678
1Income      
 (a) Revenue from operations23496.3522764.5724120.3670453.5169085.0490307.43
 (b) Other income526.27893.66187.651746.15548.911872.13
 Total income (a+b)24022.6223658.2324308.0172199.6669633.9592179.56
2Expenses      
 (a) Fuel cost12466.8712912.2114511.8539253.4140503.0752493.74
 (b) Electricity purchased for trading593.42568.85710.151946.752004.102713.68
 (c) Employee benefits expense1164.741137.151146.373497.703573.814779.89
 (d) Finance costs1760.811618.991277.004945.063791.044716.74
 (e) Depreciation, amortisation and impairment expense2319.812123.142001.016493.905749.617254.36
 (f) Other expenses  2294.931800.171172.095980.694876.977548.63
 Total expenses (a+b+c+d+e+f)20600.5820160.5120818.4762117.5160498.6079507.04
3Profit before tax and Regulatory deferral account balances (1-2)3422.043497.723489.5410082.159135.3512672.52
4Tax expense:      
 (a) Current tax (refer Note 4)671.78498.21785.821866.391951.872849.12
 (b) Deferred tax1353.28604.82780.842331.912318.50(5767.83)
 Total tax expense (a+b) 2025.061103.031566.664198.304270.37(2918.71)
5Profit after tax before Regulatory deferral account balances (3-4)1396.982394.691922.885883.854864.9815591.23
6Net movement in Regulatory deferral account balances (net of tax)1598.16867.75462.532976.522534.59(3841.34)
7Profit for the period (5+6)2995.143262.442385.418860.377399.5711749.89
8Other comprehensive income/(expense)      
 Items that will not be reclassified to profit or loss (net of tax)      
 (a) Net actuarial gains/(losses) on defined benefit plans(53.25)(56.01)2.57(159.47)7.55(185.13)
 (b) Net gains/(losses) on fair value of equity instruments0.30(13.08)31.38(20.28)6.54(16.74)
 Other comprehensive income/(expense) (net of tax) (a+b)(52.95)(69.09)33.95(179.75)14.09(201.87)
9Total comprehensive income for the period (7+8)2942.193193.352419.368680.627413.6611548.02
10Paid-up equity share capital
(Face value of share Rupee 10/- each)
9894.569894.568245.469894.568245.469894.56
11Other equity excluding revaluation reserve as per balance sheet     97513.61
12Earnings  per  share  (of  Rupee  10/-  each)  -  (not  annualised) (including net movement in regulatory deferral account balances): Basic and Diluted (in Rupee) (Refer Note 12)3.033.302.418.957.4811.88
13Earnings  per  share  (of  Rupee  10/-  each)  -  (not  annualised) (excluding net movement in regulatory deferral account balances): Basic and Diluted (in Rupee) (Refer Note 12)1.412.421.945.954.9215.76

Refer accompanying notes to the financial results.

 

STANDALONE SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2019

(Rupee Crore)
Sl.No.ParticularsQuarter ended 31.12.2019
(Unaudited)
Quarter ended 30.09.2019
(Unaudited)
Quarter ended 31.12.2018
(Unaudited)
Nine months ended 31.12.2019
(Unaudited)
Nine months ended 31.12.2018
(Unaudited)
Year ended 31.03.2019
(Audited)
12345678
1Segment revenue      
 - Generation23176.8522811.0823464.8269504.8667200.4788702.38
 - Others1193.381113.01814.133606.812336.953241.51
 - Less: Inter segment elimination381.98387.25-1152.20--
  23988.2523536.8424278.9571959.4769537.4291943.89
 - Unallocated34.37121.3929.06240.1996.53235.67
 Total24022.6223658.2324308.0172199.6669633.9592179.56
2Segment results (Profit before tax and interest)      
 - Generation7225.726256.335377.1818968.2616244.6613724.83
 - Others171.83120.1260.13446.68224.23389.72
 Total7397.556376.455437.3119414.9416468.8914114.55
 Less:      
 (i) Unallocated finance costs1760.811618.991277.004945.063791.044716.74
 (ii) Other unallocable expenditure net of unallocable income278.20240.44293.39781.06947.481621.76
 Profit before tax (including regulatory deferral account balances)5358.544517.023866.9213688.8211730.377776.05
3Segment assets      
 - Generation192321.65183337.94170306.37192321.65170306.37163073.92
 - Others6408.985995.325594.116408.985594.114661.17
 - Unallocated111529.02120864.72116490.40111529.02116490.40123142.68
 Total310259.65310197.98292390.88310259.65292390.88290877.77
4Segment liabilities      
 - Generation17455.5418325.5314905.4317455.5414905.4315748.31
 - Others3648.053582.222734.903648.052734.902869.85
 - Unallocated176078.53178100.70167940.06176078.53167940.06164851.44
 Total197182.12200008.45185580.39197182.12185580.39183469.60

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

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 7 February 2020 and approved by the Board of Directors in their meeting held on the same day.

2. The statutory auditors of the Company have carried out the limited review of these financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

3. a) 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. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and nine-months ended 31 December 2019 is Rupee 21,476.20  crore and Rupee 66,410.30 crore respectively (previous quarter and nine-months Rupee 22,633.04 crore and Rupee 65,507.55 crore as per erstwhile Tariff Regulations, 2014).

b) Sales for the quarter and nine-months ended 31 December 2019 have been provisionally recognized at Rupee 21,856.07 crore and Rupee 66,742.61 crore respectively (previous quarter and nine-months Rupee 22,926.52 crore and Rupee 66,092.96 crore) on the said basis.

c) Sales for the quarter and nine-months ended 31 December 2019 include Rupee 443.61 crore and Rupee 500.04 crore respectively (previous quarter and nine-months Rupee 256.00 crore and Rupee 120.10 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) Sales for the quarter and nine-months ended 31 December 2019 also include Rupee 17.63  crore and Rupee 52.89  crore respectively (previous quarter and nine-months Rupee 20.89 crore and Rupee 62.67 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

e) Revenue from operations for the quarter and nine-months ended 31 December 2019 include Rupee 646.44  crore and Rupee 2,072.35 crore respectively (previous quarter and nine-months Rupee 751.30  crore and Rupee 2,154.76  crore) on account of sale of energy through trading.

4. Provision for current tax for the quarter and nine-months ended 31 December 2019 includes (-) Rupee 1.30 crore  and (-) Rupee 1.30 crore respectively (previous quarter and nine-months Rupee Nil and (-) Rupee 105.88 crore) being tax related to earlier years.

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 December 2019 is Rupee 15,533.37 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 December 2019 is Rupee 163.39 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 731.65 crore (31 March 2019: Rupee 719.71 crore) has been incurred upto 31 December 2019 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 422.96 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 Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. An amount of Rupee 356.31 crore (31 March 2019: Rupee 356.31 crore) has since been deposited based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India. 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 Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

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, which is under progress.

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’, Significant Accounting Policies of the Company and  the principle of conservatism,  an amount of Rupee 394.20 crore (31 March 2019: Rupee 394.07 crore) has since been provided for on an estimated basis as against the above claim and the balance is considered as contingent liability.

9. During the quarter, one thermal unit of 800 MW at Lara w.e.f. 1 October 2019 and one thermal unit of 660 MW at Tanda w.e.f. 7 November 2019 have been declared commercial.

10. 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.

11. In pursuance to Section 115BAA of the Income Tax Act, 1961 announced by Government of India through Taxation Laws (Amendment) Ordinance, 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 exercised this option after evaluating the same and continues to recognize the taxes on income as per the earlier provisions.

12. Earning per share has been adjusted for the quarter and nine-months ended 31 December 2018 as per Ind AS 33 'Earning per share' on account of issue of fully paid bonus shares during March 2019 in the ratio of one equity share of Rupee10/- each for every five equity shares held.

13. 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.

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

 

STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED  31 DECEMBER 2019

(Rupee Crore)

Sl. No.ParticularsQuarter ended 31.12.2019 (Unaudited)Quarter ended 30.09.2019 (Unaudited)Quarter 
ended 31.12.2018 (Unaudited & not subjected to review) (refer note 2)
Nine months ended 31.12.2019 (Unaudited)Nine months 
ended 31.12.2018 (Unaudited & not subjected to review) (refer note 2)
Year ended 31.03.2019  (Audited)
12345678
1Income      
 (a) Revenue from operations25412.3924459.7025491.0475803.2072852.2295742.03
 (b) Other income540.63814.85186.051696.61540.021795.31
 Total income (a+b)25953.0225274.5525677.0977499.8173392.2497537.34
2Expenses      
 (a) Fuel cost13084.0513370.7214893.4540875.4341383.6053833.78
 (b) Electricity purchased for trading1074.341221.061278.503738.443951.815288.12
 (c) Employee benefits expense1191.291176.881184.443589.283652.194907.59
 (d) Finance costs2048.191805.051407.265620.474194.395260.85
 (e) Depreciation, amortisation and impairment expense2541.972285.582100.227019.706057.037688.10
 (f) Other expenses  2469.361867.851232.906283.565022.547603.03
 Total expenses (a+b+c+d+e+f)22409.2021727.1422096.7767126.8864261.5684581.47
3Profit before tax, Regulatory deferral account balances and Share of net profit of joint ventures accounted for using equity method (1-2)3543.823547.413580.3210372.939130.6812955.87
4Share of net profits of joint ventures accounted for using equity method84.12123.91142.44355.14405.61672.07
5Profit before tax and Regulatory deferral account
balances (3+4)
3627.943671.323722.7610728.079536.2913627.94
6Tax expense:      
 (a)Current tax (refer Note 5)696.63525.05794.651946.901976.432916.31
 (b)Deferred tax1331.83604.94780.842310.582318.50(6122.72)
 Total tax expense (a+b)2028.461129.991575.494257.484294.93(3206.41)
7Profit after tax before Regulatory deferral account
balances (5-6)
1599.482541.332147.276470.595241.3616834.35
8Net movement in Regulatory deferral account balances (net of tax)1598.25867.59460.912976.342533.06(4200.90)
9Profit for the period (7+8)3197.733408.922608.189446.937774.4212633.45
10Other comprehensive income/(expense)      
 (a)Items that will not be reclassified to profit or loss
(net of tax)
      
  (i)Net actuarial gains/(losses) on defined
benefit plans
(53.25)(56.01)2.57(159.47)7.55(185.13)
  (ii)Net gains/(losses) on fair value of equity
instruments
0.30(13.08)31.38(20.28)6.54(16.74)
  (iii)Share of other comprehensive income of joint ventures accounted for under the equity method(0.34)(0.58)(0.89)(1.24)(0.40)(1.07)
 (b)Items that will be reclassified to profit or loss (net of tax)      
  (i)Exchange differences on translation of foreign operations3.117.91(13.40)8.6014.9511.67
 Other comprehensive  income/(expense)  (net  of tax)
(a+b)
(50.18)(61.76)19.66(172.39)28.64(191.27)
11Total comprehensive income for the period (9+10)3147.553347.162627.849274.547803.0612442.18
12Profit attributable to owners of the parent3179.063400.842597.959417.027792.8012640.02
13Profit attributable to non-controlling interest18.678.0810.2329.91(18.38)(6.57)
14Other comprehensive income/(expense) attributable to owners of the parent(50.18)(61.76)19.66(172.39)28.64(191.27)
15Other comprehensive income/(expense) attributable to non controlling interest------
16Paid-up equity share capital (Face value of share Rupee 10/- each)9894.569894.568245.469894.568245.469894.56
17Other equity excluding revaluation reserve as per balance sheet     100142.43
18Earnings per share (of Rupee 10/- each) - (not annualised) (including   net   movement   in   regulatory deferral account  balances):  Basic and Diluted (in  Rupee)  (Refer
Note 12)
3.213.432.639.527.8812.77
19Earnings per share (of Rupee 10/- each) - (not annualised) (excluding   net   movement   in   regulatory   deferral account  balances):  Basic  and  Diluted  (in  Rupee)  (Refer Note 12)1.602.562.166.515.3217.02

Refer accompanying notes to the financial results.


CONSOLIDATED SEGMENT-WISE REVENUE, RESULTS, ASSETS AND LIABILITIES FOR THE QUARTER AND NINE MONTHS ENDED 31 DECEMBER 2019

(Rupee Crore)
Sl.No.ParticularsQuarter ended 31.12.2019
(Unaudited)
Quarter ended 30.09.2019
(Unaudited)
Quarter ended 31.12.2018
(Unaudited & not subjected to review) (refer note 2)
Nine months ended 31.12.2019
(Unaudited)
Nine months ended 31.12.2018
(Unaudited & not subjected to review) (refer note 2)
Year ended 31.03.2019
(Audited)
12345678
1Segment revenue      
 - Generation24708.4123884.8524244.4673175.1768970.1791522.34
 - Others2148.852224.341871.276889.215688.127636.82
 - Less: Inter segment elimination930.51846.89457.072701.441335.421821.63
  25926.7525262.3025658.6677362.9473322.8797337.53
 - Unallocated26.2712.2518.43136.8769.37199.81
 Total25953.0225274.5525677.0977499.8173392.2497537.34
2Segment results (Profit before tax and interest)      
 - Generation7707.396553.275582.2620029.6316599.9814071.47
 - Others108.65167.9485.10455.81293.22384.46
 Total7816.046721.215667.3620485.4416893.2014455.93
 Less:      
 (i) Unallocated finance costs2048.191805.051407.265620.474194.395260.85
 (ii) Other unallocable expenditure net of unallocable income203.31225.67161.58530.37569.03823.17
 Profit before tax (including regulatory deferral account balances)5564.544690.494098.5214334.6012129.788371.91
3Segment assets      
 - Generation213222.58204144.13181323.40213222.58181323.40177305.53
 - Others8190.438162.097351.408190.437351.406587.89
 - Unallocated117507.56126163.73128724.53117507.56128724.53133826.36
 - Less: Inter segment elimination485.36429.20333.54485.36333.54323.38
 Total338435.21338040.75317065.79338435.21317065.79317396.40
4Segment liabilities      
 - Generation20196.9420942.3716988.5720196.9416988.5718103.12
 - Others5037.445230.974094.095037.444094.094401.86
 - Unallocated197464.41199076.90187359.13197464.41187359.13185177.81
 - Less:Inter segment elimination485.36429.20333.54485.36333.54323.38
 Total222213.43224821.04208108.25222213.43208108.25207359.41

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

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 7 February 2020 and approved by the Board of Directors in their meeting held on the same day.

2. The statutory auditors of the Company have carried out the limited review of these financial results as required under Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The comparative figures for the quarter and nine-months ended 31 December 2018 have been prepared by the Management and have not been subjected to limited review or audit. However, the Management has exercised necessary due diligence in preparing these results.

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
7NTPC 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 Private 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.

4. a) 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. Energy charges are billed as per the operational norms specified in the Regulations 2019. The amount provisionally billed for the quarter and nine-months ended 31 December 2019 is Rupee 23,537.01 crore and Rupee 70,026.47 crore respectively (previous quarter and nine-months Rupee 24,228.15 crore and Rupee 67,213.67 crore as per erstwhile Tariff Regulations, 2014).

b) Sales for the quarter and nine-months ended 31 December 2019 have been provisionally recognized at Rupee 22,909.10 crore and Rupee 68,949.73 crore respectively (previous quarter and nine-months Rupee 23,235.51 crore and Rupee 66,512.96 crore) on the said basis.

c) Sales for the quarter and nine-months ended 31 December 2019 include Rupee 443.61 crore and Rupee 525.41 crore respectively (previous quarter and nine-months Rupee 256.00 crore and Rupee 120.10 crore) pertaining to previous years, recognized on the basis of orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) Sales for the quarter and nine-months ended 31 December 2019 also include Rupee 17.63  crore and Rupee 52.89  crore respectively (previous quarter and nine-months Rupee 20.89 crore and Rupee 62.67 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2019.

e) Revenue from operations for the quarter and nine-months ended 31 December 2019 include Rupee 1,595.37 crore and Rupee 5,323.27 crore respectively (previous quarter and nine-months Rupee 1,803.74 crore and Rupee 5,490.45 crore) on account of sale of energy through trading.

5. Provision for current tax for the quarter and nine-months ended 31 December 2019 includes (-) Rupee 1.28 crore  and (-) Rupee 1.28 crore respectively (previous quarter and nine-months Rupee Nil and (-) Rupee 105.88 crore) being tax related to earlier years.

6. 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 December 2019 is Rupee 15,533.37 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.

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 December 2019 is Rupee 163.39 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.

8. An amount of  Rupee 731.65 crore (31 March 2019: Rupee 719.71 crore) has been incurred upto 31 December 2019 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 422.96 crore (31 March 2019: Rupee 413.40 crore) in respect of arbitration awards challenged by the Company before 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.

9. 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 Rupee 1/-. After commencement of the operations, the operator had raised several disputes, invoked arbitration and raised substantial claims on the Company. An amount of Rupee 356.31 crore (31 March 2019: Rupee 356.31 crore) has since been deposited based on the interim arbitral award and subsequent directions of the Hon’ble Supreme Court of India. 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 Hon'ble High Court of Delhi (Hon'ble High Court) against the said arbitral award in its entirety.

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, which is under progress.

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’, Significant Accounting Policies of the Company and  the principle of conservatism,  an amount of Rupee 394.20 crore (31 March 2019: Rupee 394.07 crore) has since been provided for on an estimated basis as against the above claim and the balance is considered as contingent liability.

10. During the quarter, one thermal unit of 800 MW at Lara w.e.f. 1 October 2019 and one thermal unit of 660 MW at Tanda w.e.f. 7 November 2019 have been declared commercial.

11. 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.

12. Earning per share has been adjusted for the quarter and nine-months ended 31 December 2018 as per Ind AS 33 'Earning per share' on account of issue of fully paid bonus shares during March 2019 in the ratio of one equity share of Rupee10/- each for every five equity shares held.

13. 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.

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

For and on behalf of the Board of Directors

Place: New Delhi
Date: 7 February 2020

       (A.K.Gautam)
DIRECTOR (FINANCE)