Financial details of BESCOM(13th Annual Report)

Corporate office

1(.R.Circle, BENGALU RU-560001

13th ANNUAL REPORT

OF

BESCOM

FOR THE FINANCIAL

YEAR 2014-15

~ Bangalore Electricity Supply Company Limited~ (Wholly owned Government of Karnataka Undertaking)

(CIN- U04010KA2002SGC030438)Registered Office: Corporate Office, K.R.Circle, Bengaluru - 560 001

Telephone No. : 080-22266011 / 22266033, Fax No. 080-22354925

Website:www.bescom.org , E-mail: cs(a:)bescom.co.inRef NO.BESCOMjBC-04jCSj Date :26.09.2015End: (1) Blank Shorter consent Notice. (2) Blank Proxy form

NOTICE

NOTICEis hereby given that the 13th Annual General Meeting of the Members ofBangalore Electricity Supply Company Limited will be held on Wednesday,the 30th September 2015 @ 1:00PM at Corporate Office, K.R.Circle,Bengaluru- 560 001 (at a shorter notice) to transact the following business :-

ORDINARY BUSINESS:

Item No.1 - Adoption of financial statements (including CFS)

To receive, consider and adopt the financial statement of the Company for theyear ended 31st March 2015 including the audited BalanceSheet as at 31st March2015, the statement of Profit & Lossfor the year ended on that date and reports'of the Board of Directors (the Board) and Auditors report together with thecomments received from the Comptroller & Auditor General of India underSection 146 (6) of the CompaniesAct, 2013.

Item No.2 - To declare a dividend on equity shares I any otherdecision if thought fit as persection123of CompaniesAct 2013.

Item No.3 - To consider appointment of Auditors and to fix theirremuneration and in this regard to consider, if thought fit, to pass withor without modification(s), the following resolution:-

"RESOLVEDTHAT, pursuant to the provisions of section 139 (5) of theCompaniesAct, 2013 and pursuant to the recommendations of Comptroller andAuditor General of India, Mis. V.K.Niranjan & Co., Chartered Accountants,Kurubara Sangha Building, KanakadasaCircle, Gandhi Nagar, Bengaluru - 560009 be and is hereby appointed as the Statutory Auditors of the Company, tohold the office from the conclusion of Annual General Meeting (AGM) till theconclusionof next AGMat the remuneration as recommended by the Board

By order of the BoardFor Bangalore Electricity Supply Company Limited

Sd/-

(K.T.HIRIYANNA)Company Secretary

Bangalore Electricity Supply Company Limited(Wholly owned Government of KarnatakaUndertaking)

(CIN- U0401 OKA2002SGC030438)Registered Office: Corporate Office, K.R.Circle, Bengaluru - 560 001

Telephone No. : 080-22266011/ 22266033, Fax No. 080-22354925

Website:www.bescom.org , E-mail: cs(a)bescom.co.in

NOTES:

1. A member entitled to attend and vote at the Annual General Meeting

is entitled to' appoint a proxy to attend and vote instead of himself

and the proxy need not be a member of the COmpany.2. The Company being a Government Company, the Comptroller &

Auditors General of India will appoint the Auditors of the Company

for the year 2015-16 under section 139 (5) of the Companies Act,

2013.3. The Company being a Govt. Company, the aspect of declaration of

dividend will be in accordance with the recommendation of the C-JBoard, decisions of shareholders as deem fit and in accordance with

the provisions of Companies Act, 2013.

By order of the BoardFor Bangalore Electricity Supply Company

LimitedSd/-

(K.T.HIRIYANNA)Company Secretary

Place: Bengaluru

Date:26.09.2015

BOARD OF DIRECTORS

(As on the date of AGM)218

S1.Names Position

No.1. Sri.P.Ravi Kumar, lAS., Chairman

2. Sri.Pankaj Kumar Pandey, lAS., Managing Director

3. Sri.Jawaid Akhtar, lAS., Director

4. Sri.Gaurav Gupta, lAS., Director

5. Sri.H.Nagesh, B.E, FIE., Director (Tech)

6. Sri.B.L.Guru Prasad, IRS., CFO & Director (F)

7. Smt.Dipti Aditya Kanade, lAS., Director

8. Sri.T.H.M.Kumar, lAS., Director

9. Sri.K.T.Mahanthappa, B.E., Director

10. Sri.M.Nagaraja, B.E., Director

11. Sri.A.N.Jayaraj, B.E., Director

COMPANY SECRETARYSri. K.T.Hiriyanna

STATUTORY AUDITORSMfs.Niranjan & Co.,

Chartered Accountant, Bengaluru

Cost Auditors

Mfs.Murthy & RaoCost Accounts, Bengaluru

Secretarial Auditors

Mfs.P.K.Pande & AssociatesPracticing Company Secretaries

Bengaluru

Registered Office: Corporate Office, K.R.Circle,Bengaluru - 560 001, Karnataka

219

DIRECTORS' REPORT

Dear Members,

Board of Directors of Bangalore Electricity Supply Company Limited(BESCOM) have pleasure in presenting the Thirteenth Annual Report for the year2014-15 and the Audited Accounts of the Company for the year ended March 31st

2015.

Bangalore Electricity Supply Company Limited was incorporated on 30th

April 2002 under the Companies Act, 1956 and commenced its operations witheffect from 1st June 2002.

The Company has successfully completed thirteen years in the "Distributionof Electricity." The Company having its headquarters at Bangalore city has itsjurisdiction comprising eight districts viz., Bangalore Urban, Bangalore Rural,Kolar, Ramanagara, Chikkaballapura, Tumkur, Davanagere and Chitradurga.

During the year 2014-15, the Company took various initiatives forrendering better services in line with Government Objectives and Policies. TheCompany had set its agenda for quality service in "Distribution of Electricity" toits consumers by strengthening the distribution network and improved efficiencymeasures in the field of Information Technology.

BESCOM continued its pursuit of higher goals in the direction of increasedMetered Sales, increased Revenue realization, meaningful "Energy Audit" at 11KV & below and increased customer care activities using Information Technologyby reducing human intervention etc. All these have been ably supported by theemployees and the result is reflected in present improved position of theCompany.

The progress of the Company on different parameters IS enumeratedhereunder.

1. STRATEGY AND VISION OF THE COMPANY:

The vision of BESCOM is to become number one in customer satisfactionin South Asia in Power Distribution. In order to achieve this vision, the Companyhas drawn up a strategy with focus on customer satisfaction, regulatorycompliance and meeting stakeholder expectations etc.

1

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220

II. MISSION:

The Mission of BESCOM is to ensure absolute consumer satisfaction andcontinuous profit in business by:

a) Ensuring total employee satisfaction.b) Developing infrastructure commensurate with growth, thus ensunng

reliable and quality power supply.c) Using best technology in communication and best practices in power sector.

Ill. PERSPECTIVE:

BESCOM covers a geographical area of 41,092 Sq. Kms with a populationof 207 lakhs and serves more than 94.44 lakhs customers. The total asset is worthRs.12615.40 Crores as on 31st March 2015.

1 Area 41,092 Sq.Kms

2 District 8

3 Population 20.7 Million

4 Consumers' 9.44 Million

5 No.ofDTCs 211287

6 HT Line length 86256.47 Ckt. Kms

7 LT line length 161186.08 Ckt..Kms

8 Employee Strength

9 Sanctioned 21455

10 Working 12358

Total Assets Rs. 14645.71 Crores

(a) Consumer Population:

Consumer population served by BESCOM is steadily increasing andrecorded an increase of 5.83% in FY-15 over previous year. The number ofconsumers existing as on 31-03-15 stands at 94,44,518.

Category wise consumers are furnished below:

As on As on % ofSI.N. Category 31-03-2014 31-03-2015 Increase

1 Bhagya Jyothi 7,32,030 7,69,153 5.07

2 Domestic Lighting and AEH 60,72,901 63,89,122 5.21

3 Commercial Lighting 8,24,739 8,64,600 4.83

2

2214 LTPower 1,69,289 1,75,326 3.57

5 HT Power 10,449 11,416 6.41

6 Irrigation Pump sets 6,96,446 7,70,469 11.11

7 Street Light & Others 1,06,814 1,15,489 8.12

8 Temporary Power 2,66,311 3,48,943 34.14

9 Defunct IP Installations 48,673 0 -100.00

TOTAL 89,24,652 94,44,518 5.83

(b) Tariff wise number of consumers and its proportion to the total as on 31-03-15.

Tariff LT1 LT2 LT3 LT4 LT5 LT6 LT7 Defunct

Number of769153 6389122 864600 770469 175326 115489 348943 0

consumers% to Total 8.l4 67.65 9.15 8.16 1.86 1.22 3.69 -

Tariff HTl HT2A HT2B HT2C HT3 HT4 HT5 Total

Numberof 186 5414 4893 380 29 217 297 99,44,518

consumers% to 0.12

100.00%Total

IV. FINANCIAL PERFORMANCE:

The financial performance of the Company during the Financial Year 2014-

15 is highlighted as below:

For the year For the year ended

SI.No. Particulars ended 31 March, 201431 March, 2015 Rs. Rs.

1 Revenue from operations 134796046743 116173534966

2 Other Income 2052439266 18278 56287

TOTAL REVENUE 13684 84 86 008 11800 13 91 253

3 ExpensesPurchase of Power 116850283737 10656 87 27 849Other operating expenses 549402861 51 65 67266Employee Benefits Expenses 8023529384 7532777251

222Other expenses

I

397 07 21 062

I

3193464028Finance costs 3976620444 3234543618TOTAL EXPENSES 132270557489 121046080012

4 Profits before Depreciation, Priorperiod items, exceptional items,extraordinary items, Income Tax(1+2-3)

3477928519 -304 46 88 7605 Depreciation 19978 51 796 126 1825 520

6 Profit / (Loss) before Prior period 1480076723 -430 65 14 280items, exceptional and extraordinaryitems and Income Tax (4-5)

7 Exceptional items 228507802 434992916

8 Profit / (Loss) before Prior period 1251568921 -474 1507

items, extraordinary items and Tax 196

(6-7)9 Prior period Expenses (+) / Income (-) 1403 67373 306738 538

10 Extraordinary & Prior period items - 5245300000

11 Profit / (Loss) before Tax (8-9) 1391936294 810531342

12 Income Tax Expenses:(a) Current tax expenses 257500000 49500000

(b) Less: MAT credit(c) Deferred tax(d) Tax expenses relating to prior.

years

13 Profit / (Loss) from continuing 1134436294 761031342

operations (10-11)

14 Profit / (Loss) from discontinuingoperations

15 Profit / (Loss) for the year (12+ 13) 113 44 36 294 761031342

16 Earnings per equity share of Rs. 10each.(1) Basic 2.07 1.39

(2) Diluted - -

General note (Note No.30) form anintegral part of these financialstatements

4

223

V. SUB STATIONS:

BESCOM is receiving energy through the following Transmission Network

& Electrical Substations.

Voltage Class of No. of SubstationsStations400Kv 3

220Kv 39

1l0Kv 28

66Kv 357

Total 427

VI. POWER PURCHASE:

(1) BESCOM is purchasing power from power generators as perGovernment of Kamataka Order No. EN 131 PSR 2003 dated 10.5.2005w.e.f., 10.6.2005. The purchase of power from various sources such asHydel, Thermal, Biomass, Wind, Solar etc., is allocated by theGovernment of Kamataka.

The power is procured from:(a) Central Generating Stations like NTPC, NLC, NTECL, Kaiga,

Kudankulam and MAPS(b) State owned generating stations of KPCL- Hydel, Thermal, Solar

and Wind.(c) Independent power producer - Udupi Power Corporation Ltd.(d) Independent power producers Non-conventional energy sources like

Wind, Biomass and Mini-hydel.

The capacity available from various sources is as below.

Sources Capacity in MW.Hydel 1032.87

Thermal 3737.62Atomic 179.10

Non-ConventionalProjects 1237.00Total 6186.59

(2) The share of allocation for various power projects as per Government ofKamataka Notifications and average power purchase cost per Kwh areas follows:

5

224

S1. Share ofAv. Power

Source Purchase CostNo. allocation

in paise/Kwh.1 (a) KPCL Hvdel: 27.89%/31.91 % 57.00(b) KPCL Thermal:

RTPS 1 to 7 50.44% 367.36RTPS VIn 50.44% 550.83BTPS Unit I 50.44% 400.67BTPS Unit II 50.44% 401.92

2. Central Geueratinz Stations:(a) NTPC 50.44% 296346

(b) NLC 50.44% 326.80

(c) Kaiga 50.44% 308.23

(d) MAPS 50.44% 207.74

3. Major IPPsUdupi Power Corporation Ltd. 77.35% 428.14

4. Minor IPPs (NeE Projects)Biomass 100% 511.49

Mini Hydel 100% 327.18

Wind 100% 357.02

Solar 100% 773.28

UI 50.44% 230.63

Medium Term 51.50% 464.87

Short Term 66.666%/51.50% 550.00

Sec 11 49.64% 550.00

(3) Transmission Charges:BESCOM is making payment of transmission charges to KPTCL and

PGCIL. The Transmission Charges being paid to KPTCL on MW basisas approved by KERC and for PGCIL, it is as approved by CERC. V

(4) Energy Charges:

(a) The total energy purchased at generation point, energy drawn at IFpoint and cost thereon, are as follows.

Total EnergyTotal energy Power Average Powerdrawn at IF Purchase Purchase cost Rs lunit)

purchased in points in cost(Rs. in At J.P.MUs MUs Crores)

At Gen. point IF.

29423.03 28256.47 11689.56 3.97 4.15

6

225

(b) Comparison of Source-wise power purchase cost during 2014-15 and

2013-14

2014-15 2013-14

SL. ENERGY AMOU ENERGY AMOUSOURCE PURCHAS NT IN PURCHAS NT IN

No.ED IN CRORE ED IN CROREMUs S MUs S

1 Hydel Power 4225.16 393.89 4535.86 359.64

2 Thermal Power 17120.56 6651.74 15089.14 5670.583 Lignite Power 1425.85 465.97 1370.15 413.314 Atomic Energy 1384.37 392.23 1039.33 288.09

5 Major IPPs - 13.30

6Non-conventionalEnergy 316.13 175.73 69.04 37.24

7 Wind Mill Energy 2259.85 806.63 2441.56 867.438 Diesel Generating -0.53 19.57 39.77

9Unscheduled InterChange Charges 165.55 38.18 -119.56 -21.24

10Short TermPurchase 3300.85 1714.83 4012.93 1947.63Tr.

11 Charges(KPTCL/PGCIL) - 1267.10 - 1295.99

12 Other Expenses1. POSOCO Charges - 1.49 - 1.63

SLDC O&M17.1611.

Expenses - - 11.36

... Cost of Banked111.

Energy - - 4.03

PCKL Rev.2.81IV.

Expenses - - 4.09

13 Energy Balancing -790.08 -297.94 -547.68 -213.4514 Inter ESCOM 14.79 5.81 17.90 9.2215 Tangendco - 0.18 - 0.2316 Legal E~enses 0.28

17Prior period

330.01 125.40expenses - -

18 Prior period-276.02 -151.50Income

TOTAL 29423.03 11689.56 27928.24 10702.75

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226

(c) Statement showing the details of power purchased, power purchasecost (P.P.Cost) and cost per unit from various sources and

transmission charges and other charges for the year 2014-15.

SL. NAME OF THE CONSAMOUNT P.P

No. COMPANY IN MUsBILLED (Rs. In COST

crores) (Rs/Kwh)

1 Central projectsNTPC 4262.87 1263.79 2.96

NLC 1425.85 465.97 3.27

MAPS 82.22 17.08 2.08

KAIGA 848.81 261.63 3.08

VALLVR 218.41 83.26 3.81

KUDANKULAM 453.34 113.52 2.50

NTPC BUNDLEDPOWER(Coal) 249.48 85.94 3.44

CGS Total 7540.98 2291.19 3.04

VI CHARGES 165.55 38.18 2.31

TBHE 8.41 0.88 1.05

Jurala 55.94 25.42 4.54

Total 229.90 64.48

Medium term2 Purchases

Mis NETSMis JSW 1611.44 837.95 5.20

Mis lEX & PEXNUs BMM IspatMls.ESSAR POWER 11.76 5.45 4.63

Mis . IDEAL ENERGY 5.51 2.48 4.50

Mis GUVNL 13.45 3.69 4.26

Medium term Total 1642.16 849.57 5.17

3 Short term PurchasesGlobal Energy 814.19 404.68 5.5

Harekrishna Metallics 8.95 4.91 5.5

BNlM Ispat 247.58 135.95 5.5

ISW 113.45 61.99 5.5

Reliance 26.24 14.43 5.5

Dhruvadesh Metasteels 18.68 10.22 5.5

Tata 141.98 77.20 5.5

Nirani Sugars 33.54 18.21 5.5

PTCIL 120.49 64.44 5.5

Athani Sugars 28.72 15.80 5.5

Satish Sugars 35.58 19.53 5.5

GMR 69.29 37.90 5.5

8

227Short term Total 1658.69 865.26 5.5

SEC-11 Energy 207 110.67 5.5

3 State ProjectsKPCL- HYDEL 3682.21 211 0.57

KPCL-DG -0.53

KPCL- THERMAL 7773.99 3031.92 3.9

KPCL-WIND 9.11 3.06 3.36

KPCL-SOLAR 4.38 2.62 5.98

4 Private Producers

OPCL 4550.28 2117.90 4.28

5 NCE ProjectsBio-Mass 70.93 36.28 5.11

Mini-Hydel 478.60 156.59 3.27

Wind 2250.74 803.56 3.57

Solar 33.83 26.16 7.73

NTPC BUNDLEDPOWER (Solar) 65.52 68.94 10.52

SUB-TOTAL (I) 30198.32 10638.31 3.52

6 Transmission ChargesPGCIL Tr. Charges - 234.56

KPTCL Tr. Charges - 1032.54

SUB-TOTAL (II) 0 1267.10INTER ESCOM

7 EXCHANGE POWER

GESCOM 1.54 0.61

MESCOM -3.58 -1.41HESCOM 21.24 8.35CESC -4.41 -1.73ENERGY BALANCING

8 CHARGES

GESCOM -29.66 -89.56MESCOM -59.40 -5.94CESC -288.69 -110.73

HESCOM -412.33 -91.71

OTHER CHARGESCost of Banked EnergySLDC O&M Expenses 17.16POSOCO charges 1.49Tangendco 0.18PCKL Rev. Expenses 2.81Legal Expenses 0.27SUB-TOT AL(III) -775.29 -270.21Prior period Expenses 330.01Prior period Income -276.02GRAND TOTAL 29423.03 11689.56 3.97

9

228(d) BESCOM has purchased power from various short term and medium

term contractors to mitigate power shortage situation. The mediumterm contractors are Mis. JSW, Mis. GUVNL, Mis. Essar Power andMis. Ideal Energy. The short term contractors are Mis JSW, Mis.PTCIL, Mis. TATA, Mis. Dhruvadesh Metasteels, Mis HarikrishnaMetallics, Mzs.Reliance, Mis. BMM Ispat, Mis. Athani Sugars, Mis.Satish Sugars and Mis. Nirani Sugars. The quantum of energypurchased and amount paid for Medium/short term contracts isfurnished as below:

Statement showing the details of energy purchased and amount paid forShort term/ Medium term contracts in 2014-15.

ENERGY Rate AMOUNT(in MUs) (Rs/uint) (Rs/crore)

MEDIUM TERMMis JSW 1611.44 5.20 837.95

Mis Essar Power 11.76 4.63 5.45

Mis Ideal Energy 5.51 4.5 2.48

Mis GUVNL 13.45 4.26 3.69

Total 1642.16 5.17 849.57

SHORT TERMGlobal Energy 814.19 5.5 404.68

Harekrishna Metallics 8.95 5.5 4.91

Bl'vIMIspat 247.58 5.5 135.95

JSW 113.45 5.5 61.99

Reliance 26.24 5.5 14.43

DhruvadeshMetasteels 18.68 5.5 10.22

Tata 141.98 5.5 77.20

NSL Sugars 33.54 5.5 18.21

PTCIL 120.49 5.5 64.44

Athani Sugars 28.72 5.5 15.80

Satish Sugars 35.58 5.5 19.53

GMR 69.29 5.5 37.90

Short term Total 1658.69 5.5 865.26

SEC-II 207.00 5.5 110.67

TOTAL 3507.85 5.20 1825.50

(e) The following Power Purchase Agreement have been signed byBESCOM which is approved by KERC during 2014-15.

S1.No. Source No. Capacity in Mw

1 Wind 1 17.85

2 Solar PV Plants 11 263

10

229(5) Peak Load:-

The details of peak load of state and BESCOM and energy input for year2014-15 is furnished below:

Maximum Minimum WheeledInput

Month BESCOM BESCOM Energy inEnergy of

BESCOM in(in MW) (in MW) kwh MUs

MUsApr-14 4344 2751 50.46 2611.70

May-14 4148 2069 54.28 2455.18

Jun-14 4081 ..•>1696 < > 69.81 2287.54

Jul-14 4093 1733 91.58 2334.14

Aug-14 4175 19373 97.86 2224.58

Sep-14 4177 1961 100.82 2220.88

Oct-14 3763 1830 106.23 2027.54

Nov-14 3957 2012 103.25 2145.27

Dec-14 4318 2446 108.43 2389.01

Jan-I5 4592 2202 119.41 2485.72

Feb-15 4608 2607 115.61 2381.40Mar-15 1······· ••.•··••••4639,·· •••·•·· 2799 130.45 2693.51

Total 1148.18 28256.47

(6) Energy at IF points:-

The total energy drawn at IF points 28256.47 MU. The energy drawnat IF point during previous years, percentage of increase in each year,energy sales, percentage of increase in each year and distribution loss are asfollows.

% increase Energy0/0 Distri

Energy increase butio AT&Sl.Year MUat

over availableNo. previous for

over n CIF points previous Loss( Lossyear sale(MU)

year %)1 FY

15321 4.55 11613.6934.25

2006 5.15 24.20

2 FY18522 20.89 14126.45 2l.64

26.552007 23.73

"J FY 26.15.J18665 0.77 14933.57 5.71 19.992008

4 FY19566 4.83 16310.48

17.422009 9.22 16.64

5 FY20329 3.9 17251.6 5.77 15.14

17.542010

6 FY21909 7.77 18736.12 8.6 14.48

18.542011

11

2307 ! FY 24584

19.50

I 201210.88 21029.95 12.24 14.46

8 FY 26568 8.072013

22796.00 8.40 14.20 19.22

9 FY26786 0.94

201423065.37 1.18 13.89 16.97

10 FY28256 5.49

201524436.08 5.94 13.52 16.76

VII. METERED CONSUMPTION:

YearEnergy Input Consumption by % Increase over

(MU) Metered Category previous year

FY-06 15321 8307.06 15.58

FY-07 18522 9717.36 16.98

FY-08 18665 11283.82 16.12

FY-09 19566 12205.78 8.07

FY-I0 20329 12940.32 6.02

FY-ll 21909 14263.20 10.23

FY-12 24584 15675.92 9.90

FY-13 26568 17069.13 8.89

FY-14 26786 17827.25 4.44

FY-15 28256 18676.96 4.77

VIII. SALE OF ENERGY:

During FY-15, 24436.08 MUs were sold to various categories of consumers,out of which 18676.96 MUs (Including Inter Escoms) were under meteredcategory and the balance of 5759.l2 MUs was accounted under unmeteredcategory. The distribution loss for the year is assessed at 13.52% and AT & Closs

is assessed at 16.76%.

(a)Metered Energy Sales:-

Sl. Category In MusNo.

1 Bhagya Jyothi 135.85

2 Domestic Lighting. incl. AEH 5718.72

3 Commercial Lighting 1663.33

4 IP set (Metered) 179.67

5 L.T. Power 1134.22

6 H.T. 8830.72

7 Water Works / Public Lighting 820.00

12

2318 Temporary installations 194.45

TOTAL 18676.96

(b) Un-Metered Energy Sales:-

Sl. No. Category In MUs

1. Irrigation Pump Sets 5759.12

TOTAL 5759.12

(c) Category wise energy sold 2014-15:-

."Tariff LT1a LT2 LT3 LT4 LT5 LT6 LT7 HT TOTAL

DomesticWater

Category BJ Lighting Comml IP SetIndus- Works &

Temp Alltries Street

& HeatingLight

Energy1663.3 5938.7 1134.2

Sold in 135.85 5718.723 9 2

820.00 194.45 8830.72 24436.08MUs

(d) Break up ofHT sales:-

HTI HT2A HT2B HT2C HT3 HT4 HT5

. Water ResidentialTOTAL

Industrial Commercial Hospitals Lift Irrigation TemporarySupply Apartments

664.24 4750.15 2795.89 189.32 18.29 127.25 285.58 8830.72

" IX. REVENUE DEMAND AND COLLECTION:-

(a) Revenue Demand:The revenue demand consequent to the growth in consumers and

tariff has increased over the years as follows:

SINo.Financial YearlRevenue

Demand01 Demand FY08: Rs. 5807 Cr

02 Demand FY 09: Rs. 6190 Cr.



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232


06 Demand FY 13: Rs.I0724 Cr.

07 Demand FY 14: Rs.11560 Cr.

08 Demand FY 15: RS.13385 Cr

(b)Revenue Collection:The revenue collections have also increased over the years as follows:

Sl No. Financial YearlRevenueCollection

01 Collection FY 08: Rs. 5360 Cr.

02 Collection FY 09: Rs. 6132 Cr




06 Collection FY 13: Rs.10096 Cr.



(c) Revenue from the consumers is being collected through the following

systems:

As a consumer friendly measure, BESCOM has initiated a number ofactions intended to increase consumers comfort while dealing with BESCOM. Asa part of this a number of payment channels/mechanisms are provided to them,

VIZ:-

(1)Bangalore Metropolitan area Zone:

(a) Electronic Clearance Scheme(Direct debit from the bank a/c -initiated by RBI)

(b) Bill Junction(ECS mandate & online)(c) Easy Bills (Counters)(d) Bangalore One (Centers)(e) City Union Bank (Counters)(f) IDBI Bank (Bescom website)(g) Pay u mobiles (mobile application online)(h) Mobile Governance(i) Bill Desk (online & electronic bill presentment)U) BESCOM Cash Counters(k) Post Office(1) IMI Payments(m) Cheque Drop Boxes

14

233(2) RAPDRP Towns:

(a) Online payments (Bescom Web site)(b) BESCOM Cash Counters(c) Cheque Drop Boxes

(3) Non RAPDRP Areas:

(a) Online payment (Bescom Web site)(b) BESCOM Cash Counters(c) Cheque Drop Boxes(d) Micro Feeder Franchise(e) Davanagere One(f) Tumkur One(g) Easy Bill

x. DEMAND SIDE MANAGE:MENT (DSM) MEASURES:

The following DSM measures were taken in the year 2014-2015 BESCOM tosave energy:

(a) Implementation of Solar Rooftop system:-

The Government of Kamataka has announced the solar policy 2014-21 for grid connected solar rooftop system under net-metering basis on22.05.2014 and set up an SRTPV Target of 100 MWs per year from theyear 2014-15 to 2017-2018. BESCOM online application for gridconnectivity, KERC approved guidelines, timelines and standard format ofapplication, power purchase agreement and other formats for SRTPVplants are made available in the BESCOM website.

~ On 07.11.2014 Hon'ble Minister for Energy, GoK, Sri. D.KShivakumar has launched grid connected Solar Rooftop programme(On Net metering basis) in BESCOM which was extended to entireKamataka State.

~ Under this facility, the consumers can setup solar PV plants atunutilized places on rooftops of buildings of individual households,industries, offices, institutions, residential complexes, etc.

~ The grid connected rooftop solar photovoltaic power generation plantsfrom 1KWp to 1MWp capacity per project/system to generateelectricity/power would be eligible under the Programme.

~ The programme is being implemented in Urban and Rural Areas aswell.

15

234>- The programme encourages installation of rooftop solar photo voltaic

power generation plant for self-consumption as well as supply/sale of

electricity to the grid.

(b)Technical Workshop on Solar rooftop system:-

>- One day workshop at Bangalore on 09.10.2014 was arranged for adiscussion on Solar Rooftop PV Programme wherein many technical

issues were deliberated.);;- Chairman and Members of KERC, Addl. Chief Secretary to Govt,

Energy Department, MDs' of KREDL, MESCOM, CESC, GESCOM,HESCOM, CEI, and Engineers deputed from ESCOMs, along withExperts from GERMI, USAID Agency were participated in the

discussions.

(c) Training programme to officers ofESCOMs:-

);;- Two days' Training programme on "Implementation of Solar RTPV ~".iIIsystem" was conducted in three batches. Engineers from all ESCOMs Vwere participated in the training programme. Experts from Solar fieldsuch as KERC, USAID, CPRI, KPCL National Training Centre haddelivered lecturers on various topics of Solar RTPV system.

);;- Book materials and CDs were got printed and distributed to thetrainees. About 195 Engineers/Officers were attended the training

programme.From 07.11.2014 to 31.03.2015, 20 nos. of Solar Rooftop installationsare serviced with a total capacity of364.15kWp.

(d) Installation of 50kWp Solar RTPV grid connected power plant in thepremises of Corporate Office, BESCOM, Bangalore (as a Pilot schemeto promote large scale grid connected rooftop solar photovoltaicprojects in Bangalore):-

Work Award has been issued for design, manufacture, supply,installation, testing, commissioning including warranty operation andmaintenance for a period of two years for providing and installation of 50kWp Solar RTPV grid connected power plant in the premises of CorporateOffice, Block-Il, BESCOM, Bangalore (as a pilot project) to promote gridconnected Solar rooftop PV project in BESCOM vide No: BESCOM/BC-5113409/2012-13/CYS-09 dtd: 30.06.2014. Total cost of the project is Rs.49,84,875/-. The installation is serviced on 07.11.2014 on trial basis andcommissioned on 31.03.2015. The total generation as on 06.04.2015 is

30316 units.

16

235XI. DSM through various schemes:'

(a) Surya Raitha Scheme:

BESCOM has initiated to arrange power supply to 250 no's ofIP setsof Harobele 11KV feeder of Kanakapura sub-division on pilot basis. DPRhas been prepared. Tender is called for "Design, Supply, Testing,Installation, Commissioning, Repair and Maintenance for a period of10 years of 250 nos. grid tied Solar PV based Irrigation pump setsunder "Surya Raitha Scheme" on l1kV Harobele F2 Feeder,Kanakapura Taluk, Ramanagara district, Karnataka state on NetMetering basis as a pilot scheme". Approximate cost of the project isRs.23 Crores. The project promotes replacing existing inefficient IP setswith efficient pump sets and energizing these IP sets with solar power andfeed in excess energy to the grid on net-metering concept. The excessenergy fed into the grid will be paid back to the farmers as per tariff fixedby KERC resulting in additional income to the farmers apart from theincome earned through crops.

The scheme will be financed by a combination of farmer investment,GoK investment, 11NRE subsidy and BESCOM investment though softloans that will be repaid by the farmer through his net metering tariffrevenues in initial years. The net metering revenues will be deposited intoan escrow account and will be diverted first to the loan account and, if insurplus, to the farmer's account.

(b) Providing advertisements on energy savings through Digital DisplayInfotainment System (DDIS) at railway reservation counters:-

BESCOM has initiated to advertise DSM measures through DDISsystem coming under jurisdiction of BESCOM at Railwayreservation/ticketing counters through LED TV screen spread in all themajor passenger reservation systems (PRS) and un-reserved ticketingsystems (UTS) Railway stations for a period of one year. Work award hasbeen issued to Mis Vyoma Technologies. Advertisement is progressingsuccessfully at all 120 nos. of railway reservation centers in BESCOM areafrom 18.06.2014. Total cost the project is Rs.47,04,4801-

(c) Distribution Energy Efficiency Project (DEEP) by providing DynamicReactive Compensation (DRC) for power factor improvement schemeon 11 kV feeders:-

BESCOM has proposed to implement Distribution Energy EfficiencyProject (DEEP) by providing Dynamic Reactive Compensation (DRC) forpower factor improvement scheme on selected 11 kV feeders on pilotbasis. DEEP system consists of Multifunction Measurement and Controlunit (MFM), GSMlGPRS modem, capacitors, capacitor-duty contractors,

17

236isolation transformers and associated. The DEEP systems address the

following functional need:• DTR metering towards energy audit and accounting.• Dynamic Reactive Compensation to improve power factor to::: 0.95 lag

&S 1.0 for all normal operating conditions of DT towards line loss

reduction.• Programmable threshold limit alerts to eliminate DT burnouts due to

overloading.• Load balancing opportunity towards enhanced performance.

A pilot project consisting of 1x25 KVA, Ix63 KVA and 1xI00 KVAis implemented through EESL (Mis OAS, Chennai) on F-6 feeder ofThenganayakanahalli of 66/11 KV V.R.Doddi substation of Sathnur(O&M) sub-division in Kanakapura division.

(d) Vidhyuth Jagruthi Yojane:-

);- "Vidhyuth Jagruthi Yojane" an awareness program introduced forschool/college students to bring in u"-'~:"L"':'~-::::::::; 0.;!-:.::, :.;::' f-]lm

communicate this in their families. Work award issued to Mis TERI forthe work of "Design and implementation of conducting energyefficiency measures and demand side management awareness activitiesin selected 100 schools/colleges in Bangalore UrbanlRural District andto sensitize approximate fifty thousand students and to bring downenergy consumption on contract period of two academic years".

);- The agency has to collect last one year electricity consumption data ofselected schools and from fifty thousand students (preferably). Theagency has to achieve 5.2 MU of energy saving for two academic

years.

(e) Agriculture Demand Side Management, WENEXA-USAID:-

• BESCOM has replaced inefficient irrigation pump sets by high energyefficient pump sets on HVDS feeders at Doddaballapur Sub-Divisionas a pilot project through ESCO model.

• This pilot is the first of its kind in India to undertake AgricultureDemand Side Management under ESCO model.

• A total number of 277 inefficient Pump sets at metered locations inDoddballapura Sub-Division were replaced by High Energy Efficient

Pump Sets.• BESCOM has saved 63,01,593 units (6.3 NlU - 35%) from this project

between April 2011 to Nlarch-2015 at Doddaballapura• KERC has issued directions to Scale up this project.

18

237

A contract agreement was signed on 07.08.2013 between BESCOMand Mis. Energy Efficiency Service Ltd., a joint venture company ofpublic sector units (PSU's) of Ministry of Power, New Delhi forAgriculture Demand Side Management i.e., for preparation of DPR toreplace one lakh nos. of less efficient IP sets by highly efficient pumpsets without any financial commitment to BESCOM as follows:

• On 14.02.2014, Mis. EESL has submitted a DPR for Pavagada talukfor replacing 10,673 nos. of IP sets along with terms and conditionsfor its implementation. Mis. EESL, claimed to achieve an energysavings of 31.49% in this project.

• Mis. EESL has been requested to prepare a baseline for one completeyear by recording the consumption data of DTC meter for review andconsideration with EESL and ESCOMs.

(1) Implementation of Mandatory use of Solar Water Heaters:

As a Demand Side Management programme, BESCOM isencouraging installation of Solar Water Heaters. No. of Solar WaterHeating Systems installed during 2014-15 in BESCOM is 72,749.

Energy savings

*Annual Energy savings for 72,749 nos. ofSWH 96.02 MU

. Per day Energy savings for 72,749 nos. ofSWH 0.29MU

* By considering average 2kW for 2 hours per day per SWH for 330 days.

(g)Providing timer switches to the street lights and Smart Energy saverunits:• BESCOM has requested BBMP and other local municipalities to install

timer switches to street lights resulting in energy savings and reducesevening peak hour load on grid. Also requested to provide SmartEnergy Saver Units so as to reduce energy cost of monthly electric billand energy savings in peak hours and to get good impression frompublic.

The status of timer switches provided to street lights in BESCOM area is asfollows:

No. of No. of timer No.of timer Balance no.

S).No. of Str.light timer switches in switches not in of timer

No.Zone ckt. Existing as switches working working switches to

on Mar -15 fixed as on condition as condition as on be fixedMar -15 on Mar -15 Mar -15

1 BlYLAZ 19510 14553 12110 2445 7400

19

-------------------------------------------- - -

238

\ 2 BRAZ 18944 70 411 301 18533

I 3 CTAZ 14198 137 76 61 14122i

I Grand Total 52652 14760 12597 2807 40055

(h) Earth Hour: Earth Hour was observed on 28.03.2015 by switching ofpower supply for one hour between 8.30 pm to 9.30 pm. In the SCADAsystem, it is observed that there was drop in load of around 43 MW duringEarth Hour which works out to be 43,000 units of energy saved.

(i) National Energy Conservation Day: Energy National EnergyConservation day was celebrated on 12thto 14thDecember 2014 throughRadio Jingles vide order no.: BESCOMlBC-9/652/20 14-15/6991-93, dtd:09.12.2014.

(j) Energy Awareness Program:-

Communication Modes Utilized through:a) Advertisements in News papers, Magazines, Souvenir etc.b) Through stalls.c) On Hoardingsd) Jingles in Doordarshan, AIR, Big FM etc.e) Posters, Pamphlets, Brochures, Car Stickers etc.f) Through Customer Interaction Meetings by Section Officers / Sub

Division officers with Grama Panchayath and Zilla Parishat offices.g) Through Interaction meetings at Taluk development 1 District

development meetings.

(k)Time of the Day Tariff:-TOD tariff is made mandatory to all HT installations of 500KVA and

above under HT2 (a) and HT2 (b) tariff w.e.f., 01-09-2012. This is optional inrespect of consumers under LT5 Industrial category (where trivector meter is

fixed).

XII. IMPORTANT PROJECTS UNDERTAKEN:

(A) BANGALORE DISTRIBUTION UPGRADATION (DAS) PROJECT:

BESCOM has taken up a prestigious project to automate the distributionnetwork for monitoring, control and operation of the 11 kV network in theBangalore City by providing suitable control and communication equipmentwhich of course, first of its kind in the entire country. The project has beentaken up during FY 2008-09 and scheduled to be completed within December

2016.

(a) Project details:-

• The cost of the Project is estimated to be Rs. 563 crores.

20

239• The Japan International Cooperation Agency (IlCA) is extending financial

assistance to an extent ofRs.417 crores. (10,643 Million IPY) .• BESCOM has to meet the balance amount of about Rs. 147 Crores.• Mis. KEMA, USA and Mis. CPR!, Bangalore are the Project Management

Consultants.

The main objective of the project is to provide assured quality and reliability ofpower supply by automating the 11 kV distribution network.

(b) Main Objectives:-

• To automate the Distribution network for monitoring, supervisory controland operation of the 11 kV network in the Bangalore City.

• To ensure reliable power supply to consumers.• To minimize loss of time for fault location and restoration due to manual

operation.• To ensure reliable power supply & to effectively arrest the consumer hours

lost because of power supply outages, thereby increasing the energy sales.• Real time control over the costly energy sold.• The scope of works in the project involves replacement of overhead lines

by Aerial Bunched cables, replacement of existing RMU's by DASCompatible RMUs, providing new RMU's, Remote Terminal Units (RTU)with communication facility at all RMU locations.

• Establishing Master Control Center at Corporate level with necessarycommunication, hardware and software.

(c) Benefits OfDAS:

• Real time control over the costly energy sold.• Improved efficiency results in lower costs.• Better reliability in power supply, planned control actions.

The DAS Project implementation is based on the following separate, butinterrelated 7 construction packages:

(d) Physical Progress:-

SI. Package Package Description Progress

No. No.1 Pkg-I Distribution Automation System l. Configuration and Development System

(DAS) Master Stations, demonstration and Communication System

Communication System and (UDl\1BS & DMBS) factory acceptance test

Control Centre Facilities (FAT) completed. C&DS equipment'sinstalled 111 BESCOM Integrated ControlCentre-I. DAS system design completed andsystem FAT is planned in Oct-20IS.

21

2402. Construction of BESCOM Integrated Control

Centre-1 at HSR Layout IS completed.BESCOM Control Centre -2 tender evaluationis in process.

,_, WPC (Wireless Planning and Co-ordination.).

Wing) has issued Decision to grant License(DL) for UHF and Microwave Frequency

allocation.4. Substation model building of GIS data is m

progress5. Construction of Communication tower at

HSR Layout, Tannery Road & Byatraynapuratower are completed.

2 Pkg-II Remote Terminal Units for Installed - 1380,

RMUs ( IIA, lIB & lIC) Field Performance Test on RTUs conducted in

RTUs - 1590 Nos 1264 locations.

3 Pkg-III Sectionalisers & Reclosers (IlIA Erected - LRC- 794 , LBS- 743

& IllB) LRC-795Nos LBS-745 Nos Site Acceptance Test conducted;

~LRC- 130, LBS- 112

4 Pkg-IV New Ring Main Units (IVA, Erection completed

IVB & IVC) Commissioned -787

RMUs - 790 Nos

5 Pkg-V New Ring Main Units in place of Erected - 644

retrofitting (VA &VB) Commissioned - 638

RMUs -800 Nos

6 Pkg-VI Constn. Of Overhead Laying - Coyote-694.6 kms, ABC-254.6 kms

Distribution Lines Commissioned - Coyote-694.6 kms, ABC-249

Coyote cunductor-695 KM kmsABC-500KM

7 Pkg- VII Constn.OfUnderground Laid - 229.629 Kms,Distribution Lines - 230.5 KMs Commissioned - 229.444 kms

(e) Financial Details orDAS project:

Total Expenditure ofDAS

Amount in Crores.

Total Project CostTotal Expenditure for the FY Total Expenditure up to 3l.3.2015

2014-15 from the inception of the project

563.70 50.31 345.32

(B) STRENGHTENING OF THE NETWORK SYSTEM:

(a) The strengthening of the distribution Network is a continuous process.During the year, HT and LT lines as follows were added to the system.

241

Added Added As on 31-03-2015

during during Total added

Particularsyear year during

OH UG Total2014-15 2014-15 year 2014-15OH UG (in KMs)

(KMs) (KMs) (in KMs)

(KMs) (KMs)

HT line 2366.05 748.48 3114.29 81311.38 4945.10 86256.47

LT line 2303.88 381.74 2685.62 159045.74 2140.34 161186.08

(b) The number of Distribution Transformers added during the year and thecumulative number available in the system.

63 to 300 toCompact Sub -

25KV 50/63 160 to StationsParticulars A

100KV 250KVA1000

500 750 990Total

KVA A KVAKVA KVA KVA

Added during10286 2895 2316 1506 326 0 3 7 17339

FY-14-54

Existing inthe system as 87071 51936 47473 20380 4141 22 91 173 211287at the end of31-03-2015

(c) Details of category wise distribution transformer failed during 2014-15

10/15/25 50/63/75/ 100/160 200/250 . 300/400/500 Total0/0

KVA KVA KVA KVA KVA Failure

4516 6622 5392 140 18 16688 7.90

(d) GoK sponsored programmes:-

1) Ganga Kalyana electrified Installations2) Energization of General IP sets3) Regularization of Unauthorized IP sets4) Drinking water supply energized

2560 Nos:1562 Nos.39501 Nos.3296 Nos.

(C) RESTRUCTURED ACCELERATED POWER DEVELOPMENT AND

REFORMS PROGRAMME (R-APDRP):

During 2014-15, lot of IT initiatives were taken up. The details of all theIT initiatives taken up in 2014-15 is detailed below:

242

XIII. MOBILE GOVERNANCE IMPLEMENTATION IN BESCOM:

Government of Karnataka has launched "Mobile Governance Project" (MOne) to deliver all possible government services to citizen over Mobile phone.

All Government Departments were informed to make use of this platformas single window platform for implementing Mobile Governance initiatives.

This Mobile Governance project envisages of enabling all Government andcitizen centric VAS services through various channels such as SMS, NR, USSD,Mobile web and Smart client application. These Mobile channels are used todeliver various categories of services such as Informational services, Paymentservices, Data capture services etc.

In this regard, as per the Government directions BESCOM decided toutilize the Mobile Governance platform to implement some of the services relatedto BESCOM which would be useful for Consumers. 4JThe following are the Services being used by BESCOM from M-One:

(1) Bill Payments can be made in four different modes by Consumers to BESCOM:(2) Mobile web(3) IVRS(4) SMS(5) USSD(6) SMS PUSH service:

Billing related information, interruption details will be pushed to consumers usingthis service.

XIV. I.T. RELATED INITIATIVES:

(a) MIS and Ganga Kalyana web-based application:-

BESCOM has successfully completed the development work of MISand Ganga Kalyana common web-based application (Ganga Kalyana isCommon web-based application which is being used by all ESCOM's andSC/STIBClMinority Corporations).

The data is being entered in the application by all the concerned endusers and the reports are being generated which can be viewed at anyhierarchy level.

This application has reduced the time taken to collect the reportsfrom different offices and also has reduced the consolidation errors.

The Maintenance work of the said two applications for ensuringuptime running of the application is also being monitored.

24

243(b) Appointment of IT Consultancy agency:-

BESCOM is getting increasingly enabled in IT environment and as acause, it is envisaging technology which caters IT enabled services/egovernance initiatives to the customers in each IT initiatives it

implements.In order to augment the IT expertise available at BESCOM in-house

team and to expedite the processes towards achieving objectives ofBESCOM, IT consultancy services are availed from MIS KPMG, which ismainly assigned the job of writing major IT tender RFPs. Following RFPs are written by KPMG and tenders are floated by BESCOM.

S1. Details of Activities under progress/completed by

No. Consultants

1 RFP for IT consultants ofR-APDRP Part A

2 RFP for Alternate connectivity for R-APDRP Part A

3 RFP for AMC for Wireless devices

4 RFP for License procurement for OS, MS office

5 RFP for RAM(Hardware) procurement

6 RFP for AMC for website -- bescom.org

7 RFP for PGRS integration and 2.0

8 TOR for Distribution Transformer Tracking System

9 RFP for Solar Consultant

10 TORs for Load Monitoring and Alert Application

(c) Licensed Software in BESCOM :-As a standard policy enforcement initiative, it was decided by the

Management ofBESCOM to use licensed software in all the computers inBESCOM to avoid hacking of critical utility data.

In the first stage, 300 nos. computers are identified at corporate officefor installation of genuine licensed software and the same is in progress.Similarly all the hardware infrastructure will be covered in the successivestages. Under RAPDRP part-A, all the system being used are underlicensed software from 2010 ..

XIV. R-APDRP PART -A in BESCOM

(a) Focus of the Programme:-The Govt. of India has proposed to continue R-APDRP part-A during

the XI Plan with revised terms and conditions as a Central Sector Scheme.Focus of the programme shall be on:(1) Actual, demonstrable performance in terms of sustained loss

reduction.

25

244(2) Establishment of reliable and automated systems for sustained

collection of accurate base line data.(3) Adoption of Information Technology in the areas of energy

accounting will be essential before taking up the regular distributionstrengthening projects.It is proposed to cover urban areas - towns and cities with population

of more than 30,000 as per the 2001 Census will be covered. Projectsunder the scheme are taken up in two Parts.

);;> Part-A shall include the projects for establishment of baseline dataand IT applications for energy accounting/auditing & IT basedconsumer service centers.

);;> Part-B include distribution strengthening projects.

(b) Board highlights in BESCOM 25 towns on the date of AGM:

);;> 1'v1BC&NC Go-live: 25 towns.);;> Full stack go-live with Energy Audit: 16 towns.);;> Office infra set : 25 towns);;> Primary NSP Link set up : 25 towns);;> Secondary NSP link set up : 24 towns);;> GIS: Under RAPDRP Part-A implementation, GIS based Consumer

Indexing and Network Asset Mapping have been taken up in all theproject areas up to a cutoff date which is different for differentSubdivisions. Inasset mapping, the HT line and LT line with assets ismapped geographically duly giving 11 digits Asset-ill for HT Poles,LT poles, Transformers, RMUs & Feeder-Pillar boxes. In ConsumerIndexing, details of Consumer with meter information etc., are linkedto the respective Source Asset-ill (i.e., Pole-ill and in case of selfexecuted DT it is DT Asset-Id in GIS.

);;> Due to time gap between Survey date, 1'v1BClive and GIS liveoperations of RAPDRP application, there are network assets whichare added in between "GIS Survey" <-> "GIS Live operation",mostly because of RAPDRP Part-B works in 24 non BANGALOREtowns and of DAS works in BANGALORE town which are carriedout after Part-A survey. The data of these assets are not available inGIS and are therefore termed as INCREMENTAL NETWORKASSETS.

In order to achieve accurate Energy Audit results, it is very essential toincorporate these incremental assets into GIS database in RAPDRP applicationand tag the incremental Feeder-wise HT consumers and DT-wise LT consumers totheir associated assets in GIS. BESCOM has awarded the Contract to KarnatakaState Remote Sensing Application Centre (KSRSAC) for Supply of network map

26

245prints and Bangalore town land base map updating for BESCOM under RAPDRPpart A.

(c) Projects Status:

81. Name of the MBCGoPercentage Energy Percentage Date of

No. town Liveof work Audit of work Implementation

completed Live completed ofEA

1 Anekal 1 100% 1 100% 100%

2 Doddaballapura 1 100% 1 100% 100%

3 Hosakote 1 100% - - -

4 CBPura 1 100% - -

5 Chintamani 1 100% - - -

6 Gowribidanur 1 100% 1 100% 100%

7 Shidlazhatta 1 100% 1 100% 100%

8 Channapatna 1 100% 1 100% 100%

9 Kanakapura 1 100% 1 100% 100%

10 Ramanagar 1 100% 1 100% 100%

11 Kolar 1 100% 1 100% 100%

12 Bangarpet 1 100% 1 100% 100%

13 Mulbagil 1 100% 1 100% 100%

14 Robertson- Pet 1 100% - - -

15 Chitradurga 1 100% - - -

16 Challakere 1 100% 1 100% 100%

17 Hiriyur 1 100% 1 100% 100%

18 Davanagere 1 100% - - -

19 Harapannahally 1 100% 1 100% 100%

20 Harihara 1 100% - - -

21 Kunigal 1 100% 1 100% 100%

22 Tumkur 1 100% - - -

23 Sira 1 100% 1 100% 100%

24 Tiptur 1 100% 1 100% 100%

25 Bangalore 1 100% - - -

25 100% 16 64% 64%

(d)Financial progress under R-APDRP PART-A:

TotalLoan Pfc

Total Expenditure Incurred

EscomNo.Of Project

Sanctioned Disbursement FromTowns Cost

(Convertible DetailsFrom Pfc Own Total

To Grant) Funds Funds

BESCOM 25 272.80 252.00 146.65 104.16 *31.47 135.63

* Rs. 31.47crores spent for metering out ofBESCOl\lI funds.

27

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246

(e) Implementation of BESCOM's own official EMAIL domain -bescom.co.in

During 2014-15 BESCOM s owned its own mail domain. As per thestate and central Govt. orders, Govt. departments are barred from usingother private domain for exchanging the information over net like (Gmail,yahoo, rediff, msn etc.,) to safeguard the security of the e - information.BESCOM was using many domains like Gmail to send and receiveinformation over net for official purpose till Oct - 2014. From October2014, BESCOM implemented bescom.co.in domain for emails underRAPDRP part A project.

The summery of the official email IDs which has created for BESCOM officersare as follows:

User Category Total users Active Users

GM/SE and above (1 GB) 41 41DGMlEE/DCA and below (400 ME) 658 656AE/AAO and be1ow(300ME) 539 346

Total 1238 1043

Till date, 1043 officers are using official email IDs to exchange theinformation and daily business transactions. This is one of the major achievementsof BESCOM towards IT initiative and 84.24% of officers are using this domain inthe organization.

XV. R-APDRP PART- B in BESCOM:

Part-B includes regular distribution strengthening projects forreduction of AT & C losses less than15%•

BESCOM is prepared DPRs for 24 towns amounting to Rs. 290.28 crores(sanctioned by Mis. PFC, New Delhi). Tenders were invited in 7 packages(District wise) on Total Turnkey basis as per the directions of SteeringCommittee, MOP and the total amount put to tender is Rs. 243.15 crores.

ILoan

Loan ExpenditureNo. Of Dpr Sanctioned

Released Incurred

UtilityEligible Approved From

From Up To Aug-Towns Cost (Rs. In MIS. Pfc/Goi 2015

(Part-B) Crore) MIS. Pfc/Goi (Rs. In (Rs. In(Rs. In Crore)

Crore) Crore)

BESCOM 24 290.28 72.57 43.542 220.91

28

247

Out of24 towns in BESCOM, 22 towns are completed and the two townsnamely, Chitradurga and Hiriyur the works are short closed and retendered andthe balance work is under process.

XVI. NIRANTHARA JYOTID SCHElVIE:

Bifurcation of Agricultural loads from existing 11 kv feeders:-

BESCOM has taken up Niranthara Jyothi scheme for segregatingagricultural loads from the existing 11 KV feeders, a scheme to provide 24x7uninterrupted power supply to non-agricultural loads in rural areas in 2 phases as

follows:

SI.No. Details I phase II phase

a No. of Taluks covered 19 23

b No. of Villages covered 4691 4607

c Cost inRs. crores 349.66 589.98

d Number of Feeders 271 281

Phase-I: In phase I during FY 11-12 out of 271 feeders 267 feeders arecompleted and 154 feeders are commissioned, during FY 12-13, 83 feeders arecommissioned, during FY 13-14 4 feeders are completed and 34 feeders are

commissioned.phase-II: Out of 281 feeders, during FY 12-13 15 feeders have been

completed and 1 feeder commissioned, during FY 13-14 111 feeders have beencompleted "and76 feeders commissioned, during FY 14-15 135 feeders have beencompleted and 179 feeders commissioned.

XVII. IDGH VOLTAGE DISTRIBUTION SYSTEM (HVDS):

~ HVDS is a technology where the Electricity is Distributed to theconsumers at Higher Voltage Level (llkV) instead of Low Voltagelevel (400V1240V).

~ Normally in the present distribution network, the 11kV HT line goes tothe DTC (Distribution Transformer Centre) and from there lengthy LTLines (400V1240V) are drawn to give supply to different installations.

~ In HVDS System the HT lines are run up to the installation premisesand there it is stepped down through a transformer before giving supplythrough service main.

The Kamataka Electricity Regulatory Commission has issued variousdirectives with a view to reduce high levels of technical and commercial losses inthe distribution system. Implementing High Voltage Distribution System by

29

- - - - ---------------

248replacing the existing LT distribution is one of the important directives issued bythe Commission.

Board has approved the implementation of HVDS scheme in 5 sub divisionsof BESCOM vide Board Resolution No. BESCOMIAS/58th BMl20 12-13/1710-24 dt: 16.03.2013 and 60th board meeting held on 5110/2013.

Sl. No. Name of the sub division No. of Feeders

1 DODDABALLA PURA 31

2 TUMKUR RSD-1 17

3 TUMKUR RSD-2 8

4 CHIKKABALLAPURA 6

5 KENGERI 6

Total 68

Physical & Financial Progress:

No. ofNo. of

Re-feeders Project

feedersdesignated

Revised No. of No. of No. ofExpendit

Sl. Name of the Proposed Cost ofrevised in

feedersProject Feeders Feeders feeders

order to take Cost as Work Work workure

No Sub Division forHVDS LOlin from D.B incurredoriginally Cr.

up one talukpura &

per RC in Comple Commissio underin crores

as pilotKengeri

Cr. ted ned progressproject.

1 Tumkur RSD 1 17 25 8 7 4 18146.25 140.96

2 Tumkur RSD 2 8 23 15 246.01 8 8 15". --

-. Kyathsandra 0 0 5 5 5 U.J - -

4 Chikkaballapura 6 34.8 6 - 74.62 6 6 - 51.7

5 Doddaballapura 31 193.0 9 -22 81.37 9 9 - 80

6 Kengeri 6 34.8 0 -6 0 - - - -

Total 68 408.85 68 0 402 30 27 38 272.66

30

Statement Showing the Amount released for creation of Infrastructure forregularization of unauthorized IP Sets (GO.No. EN 09 PSR 2011 datedl1.03.2011).

Sl. Govt. Order No. Account HeadAmount

No. Date ReleasedRemarks

1 EAN 09 PSR 20114801-01-190-0-09- 35.00 Crores 2011-12

21109.09.2011 (Plan)

2 EAN 67 PSR 20124801-01-190-0-09- 20 .00 Crores 2012-13

21106.09.2012 (Plan)

3 EAN 67 PSR 2012 4801-01-190-09-211 4.00 Crores 2012-13

18.10.2012 (Plan)Total 59.00 Crores

249

XVIII. CONSUMER INITIATIVES TAKEN DURING FINANCIAL YEAR2014-15:

(1) Integrated 24 X 7 Helpline and Public Grievance RedressalSystem:-

(a) To facilitate consumers, BESCOM has established a well-integrated24 X 7 Customer Help Line through the latest technology &software developments along with in-built automatic call transfersystem. Consumers can call on the Customer Help Line Number1912 which has 30 concurrent lines with Multi Channel ComplaintRegistration Facility (Phone, SMS, Online, E-mail & Facebook).There are about 150 Customer Support Executives, 12 TeamLeaders and 4 Team Managers and in charge shift Assistant/JuniorEngineers are functioning in the BESCOM Helpline.

(b) All the consumer complaints are being registered in the Webenabled IPGRS (Public Grievance Redressal System) application.Whenever any consumer registers complaint, they will be providedwith the Docket Number, using which they can track theircomplaint status through Help Line or BESCOM Website. For thespeedy redressal of complaints, BESCOM has established Circlecontrol rooms in all the 9 Circles. In Circle Control Rooms, theexecutives makes follow up of complaints pertaining to their Circletill resolution.

(c) In order to facilitate consumers to register their complaints throughSMS, BESCOM has developed and deployed a SMS ComplaintManagement System. Consumer can send SMS to 58888 to registertheir complaints. Once the SMS is received, consumer getsback the acknowledgment message along with docket number.The application forwards complaint message to the concerned Sub-

31

250Divisional AEE, EE for necessary action. After resolving thecomplaints the concerned field staff will inform the circle controlroom to close the complaint docket. The executives at circle controlrooms confirm with the complainant and then only they will closethe docket.

(d) The well Customized PGRS application generates various MISreports indicating the number of complaints, nature of complaintsreceived, complaints attended, complaint pending and reasons fornot attending the complaints. The PGRS application also includesEscalation Matrix, Technical Dash Board & SMS Gateway Facility.The overall complaint redressal time taken in the month of March-15 is 25mins.

(2) Electrical Safety and Energy Savings Awareness Program:-

a) In order to create awareness on Electrical Safety and Energy Savings,BESCOM has conducted various activities to reach out consumersthrough through TV channels, Radio partners, Theatres andMultiplexes,

b) In order to create awareness among the public on Electrical Safety toavoid electrical accidents and also to create awareness on Energysavings, BESCOM has decided to empanel technically qualified andprofessionally managed NGOs/ Non-Profit Organizations in thisfinancial year.

c) Conducting Programs for school children through "Vidhyuth JagruthiYojane"

(3) Revision of KERC (Electricity Supply) Code, Conditions of Supply ofElectricity of Distribution Licensees (CoS) and allied Regulations:-

As per the directions of Hon'ble Commission a Committee has beenconstituted for the revision of KERC (Electricity Supply) Code, Conditionsof Supply of Electricity of Distribution Licensees (CoS) and alliedRegulations. The commission directed the Committee to examine the needfor Simplification of the existing Supply Regulations/ Codes andrecommend for a simplified set of Regulations for adoption.

In this regard, meetings are being held and the Committee has madenecessary modifications in Conditions of Supply of Electricity ofDistribution Licensees (CoS).

(4) Simplification of forms and procedures involved in BESCOM services:

BESCOM is continuously working towards adoption of opengovernance platform to enlighten the consumers on activities in BESCOMand standard procedures for various works and re-engineering the existing

32

251procedures to enable consumers, less interaction while resolving issues withBESCOM.

In this regard, BESCOM has simplified various Forms which areissued under various regulations of KERC. We have simplified all ServiceForms viz., New Connection, Name Transfer etc., Also prepared newformats for Replacement of burnt out meters, Issue of Service Certificate,Additional load, Surrender of Installation and many other additional Formsto facilitate consumers. The entire application forms are uploaded in theBESCOM Website.

The followings are the various Service forms and notices simplified tofacilitate Consumers:

***

" **************

"

Format-l : New ConnectionFormat-2 : Reclassification of ConsumersFormat-3 : Service CertificateFormat-4 : Requisition for Meter TestingFormat-S : Replacement of Burnt out MetersFormat-o : Notice for Supplemental ClaimsFormat-7 : Final Order on Supplemental ClaimsFormat-8 : Adjustment of Erroneous BillsFormat-9 : Notice for Termination of AgreementFormat-lO : Application for Reduction in LoadFormat-Ll : Application for Surrender ofRR NumberFormat-12 : Requisition for Shifting of InstallationFormat-13 : Transfer of InstallationFormat-14 : Disconnection NoticeFormat-IS: Appeal Before the Appellate AuthorityFormat-16 : Demand Notice for ASDFormat-17 : ECS Limited Mandate Form

(5) Customer Interaction Meeting:-

As per the directions of KERC, BESCOM has started conductingCustomer Interaction Meetings in all the sub divisions every monthregularly from November 2011.

To facilitate all the sub divisional officers and consumers, a schedulehas been prepared for conducting CIM in each sub division on a particulardate and time for the whole year. The schedule was communicated to allthe sub divisions to ensure that the CIM meetings will be held on that day.The clippings of the CIM video will be uploaded in YouTube by theconcerned AEEs. Various circulars and letters have been issued from time

'1'1.J.J

252to time explaining the procedure and the steps to be taken for creatingawareness locally and to make CINImore effective.

To create awareness among the consumers about CIM, pamphletsexplaining the procedure, schedule containing date, time and venue havebeen distributed in all the sub divisions. We have taken all the necessarysteps to make CIM success. In the year 2014-2015, 1356 ConsumerInteraction Meetings (CIM) have been held in all the sub divisions ofBESCOM.

XIX. TRAINING PROGRAMS FOR THE BESCOM PERSONNEL AS PERKERC GUIDELINES:-

BESCOM is conducting continuous training programs to its personnel toeducate them regarding KERC guidelines, duty of licensee, procedures to beadopted in day today work to facilitate our consumers. The purpose of thistraining program is to help our employees to gain the qualifications, knowledgeand skills in a particular subject and also to develop the ability to resolve thedifficulties being faced in day today works.

XX. QUALITY AND SAFETY:-

BESCOM is committed to safety of Public and its personnel. In thisdirection BESCOM has under taken improvements to the DistributionTransformer Centers. The GOS operating handle provided for operation ofDistribution Transformer situated in narrow footpaths is found impending freemovement of pedestrians. Hence, BESCOM has modified the design of 11KV GOS operation. The project cost is Rs. 12.00 crores for 60,000 no's. ofunits. This work was successfully implemented in E8 and C8 sub division on trialbasis for 1000 no's. After successful operation, the scheme is extended toBESCOM area. So far 10,000 no's of 11 KV GOS operating mechanism havebeen modified. This project is targeted to be completed before Ari12016.

In order top provide continuous power supply to agricultural feeders underNJY BESCOM has installed state of art numerical relays to limit the loads duringsingle phase power supply period. So far 450 no's of agricultural feeders havebeen provided with numerical relay protection. The balance 517 nos. under Phase1 and Phase 2 is targeted to be completed before October 2015.

BESCOM is committed to safety of workmen working in the organization.BESCOM has provided maintenance staff with safety hand gloves, safety belts,safety helmets with indicators, ret1ective jackets, etc., to enable the maintenancestaff to perform their duties with confidence.

34

253XXI. INTERNAL AUDIT:

Internal Audit wing in BESCOM is functioning independently under thedirect control of Managing Director, BESCOM. Internal Audit wing at Corporateoffice is headed by the General Manager (IIA). He is assisted by one DeputyGeneral Manager (IIA) and 6 Assistant General Manager (IIA). Issuingclarification/circulars on all the audit related matters, verification of various levelprocurement of materials/services, pre-audit of power purchase bills, concurrentaudit of Project section and audit of establishment & services section are beingconducted. Also persuasion is being made for disposal of AG Paras withconcerned accounting units for early clearance. Besides this, the special audit isconducted in respect of cases referred by the .Corporate, Zones and Circlesregarding cash defalcation. Audit of financial/store irregularities and procedurallapses etc., are also carried out by the Internal Audit wing.

The audit at Divisional/Circle/Zonal level comprises of purchases related ton audit, establishment, store, revenue, cash & expenditure audit. All the activitiesare being carried out as per the norms laid down in the audit manual and circularsissued by the company from time to time. The scope of Internal Audit covers the

following:

(1) Revenue Accounts Audit: Revenue demanded in respect of all installationsis checked in respect of accuracy by billing, classification of tariff and withrespect to other parameters to ensure realization of legitimate revenue due tothe company. Due to shortage of staff, every year the action plan is beingcompleted duly using the services of retired employees and graduateassistants. During the 2014-15 "audit short claim" of Rs. 19.55 crores hasbeen pointed out and Rs. 22.42 crores has been recovered (including the

arrears amount of previous years).(2) Cash Accounts Audit: To ensure proper accounting of cash received from

consumers and remittance to Corporate Office, bank reconciliation statementand cash accounts are being checked for their correctness and irregularitiesor prevent cash defalcation/misappropriation. During the course of the auditif any irregularities/misappropriations are noticed the same is brought to the

knowledge of the management.(3) Expenditure Audit: Expenditure audit is being conducted every month to

ensure all the payments made at Corporate Office, circles and divisions.During the FY 2014-15, the excess payment of Rs. 0.09 crores has beenpointed out and recovered and amount to an extent of Rs. 12.52 crores hasbeen rectified at corporate office. At the divisions and circles excesspayment of Rs, 1.81 crores has been pointed out and 0.98 crores has been'recovered. Similarly Rs. 2.04 crores of 'irregular payments' has beenpointed out and Rs. 1.60 crores has been regularized.

35

254

(4) Store Audit: Store Audit is conducted on quarterly basis. Store auditreports are being, issued to the store officers of the concerned divisions forthe discrepancies noticed i.e., excess materials drawn, differences inaccounting of store transactions, differences in store and pricing ledger etc.It is also instructed to ensure and to report regarding proper implementationof the store final orders issued by the concerned circles every year.

(5) A.G.lCOPU Paras: During the FY 2014-15 no paras has been received in

respect of COPU.(6) Special Audit: During the FY 201-15, totally 6 cases have been received

and audit of the same is under progress. Reports for the completed casehave been submitted to the management for taking further necessary action

as per rules.

XXII. CORPORATE GOVERNANCE:

The Board of BESCOM believes and supports Corporate Governancepractices of a high standard, ensuing observance of these principles in all its CJdealings. All the Directors have taken active part in the proceedings of Board andSub-Cormnittee meetings which added value in the decision making process. Thenon-functional directors receive sitting fees for Board/Sub-Committee meetingsattended by them. Company has complied with various statutory requirementsprescribed under the Companies Act 1956 and 20l3, labour Laws and otherCorporate Laws wherever applicable for the FY 2014-15.

(a) Board of Directors:

The meetings of the Board of Directors are scheduled in advance for whichnotice is given to each Director in writing. The agenda and other relevant notes

are circulated to the Directors in advance.

Following are the Directors ofBESCOM as on the date of AGM:

1 P.Ravi Kumar, LA.S., Chairman

2 Pankaj Kumar Pandey, LA.S., Managing Director

3 Jawaid Akhtar, LA.S., Director

4 Gaurav Gupta, LA.S., Director

5 H.Nagesh Director (Technical)

6 B.L.Guruprasad, I.R.S., Director (Finance)

7 Dipti Aditya Kanade, LA.S., Director

8 T.H.M.Kumar, LA.S., Director

9 K. T.Mahanthappa Director

36

255

10 M.Nagaraju Director

11 A.NJayaraj Director

Hiriyanna K.T. Company Secretary

During 2014-15 and during 2015-16(upto the date of AGM), eight Board meetingstook place as detailed below:

Sl No. Meeting No. Held on

1 64th 11.06.2014

2 65th 21.08.2014

3 66th 20.11.2014

4 67th 18.03.2015

5 68th 16.05.2015

6 69th 25.07.2015

7 69th (Adjourned) 04.08.2015

8 70th 15.09.2015

(b)Board Sub-Committees:-

The Sub-Committees of the Board were constituted to give morefocused attention on important issues.

(1) Central Purchases Committee:-

Central Purchases Committee was formed to consider all cases of" purchases whether for Projects or work award of StationlLine works or any

other works and all matters relating to such purchases as per prevailingdelegation of financial powers. The composition of the Central PurchasesCommittee as on date of AGM is as below:

1 Managing Director, BESCOM Chairman

2 Director (Technical), BESCOM Member

3 Director (Finance), BESCOM Member

4CEE, Tr. Zone, KPTCL MemberBengaluru

5 Company Secretary, BESCOM Convener

37

---------------------------------------- -

256

During 2014-15 and during 2015-16(upto the date of AGM), CPC met on thefollowing dates:

SI. No. Meeting No. Held on

1 74th 06.05.2014

2 75th 04.07.2014

3 76th 18.09.2014

4 77th 06.11.2014

5 78th 28.01.2015

6 79th05.03.2015 &

07.03.2015

7 80th 16.04.2015

8 si- 22.04.2015

9 82nd 13.05.2015

10 83rd 06.07.2015

11 84th 15.07.2015

12 85th 04.08.2015

13 86th 04.09.2015

(2) Borrowing Sub Committee:-The Borrowings Sub-Committee has been delegated certain specific

powers to borrow Long term Loans from Banks/financial institutions onbehalf of the Board from time to times subject to ceiling approved by theShareholder at the General Meeting.

Composition of Borrowings Sub-Committee as on date of AGM is as below:

1 Managing Director, BESCOM Chairman

2 Director (Finance), BESCOM Member



During the year under report (FY 2014-15), the Borrowing Sub-Committeeheld its meetings as below:

SI. For availing Finance fromAmount in Held on

No. crores

1Mis. Rural Electrification Corporation Rs. 250.2553 17.07.2014Ltd.

2M/s. Rural Electrification Corporation Rs.353.3617 17.07.2014Ltd.

38

257Mis. State Bank of Mysore Rs.100 16.03.2015

(3) Audit Committee:-An Audit Committee was formed on 21 st April 2005 in accordance with

the provisions of the Companies Act.

The Composition of the Audit Committee as on date of AGM is as below:

1)

2)

3)4)

~

5)

6)

7)

8)

1 Managing Director, KPTCL(By Name) Chairman

2 Director (Technical), BESCOM Member



Audit Committee considers and recommends the financial results to theBoard. Statutory Auditors & Cost Auditors are invited to attend the meeting.The committee also invites the Chief General Manager (F&C) and General

Manager(II A) to be present at the meeting.

Audit Committee has adequate powers and 'Terms of Reference' to play

an effective role as mentioned in Companies Act which includes:

Discussion with the Auditors periodically about Internal Control Systemand the scope of audit including observations of the Auditors.Review of the Annual Financial statements before submission to the

Board.Ensure compliance of internal control systemsInvestigation into any of the matters as may be referred to by the Board.Financial and Risk Management Policies and Fraud and Fraudulent

Risks.Review of annual capital, revenue and store budgets before being placed

before the Board for approval.Review of programmes of finalization of annual accounts for timely

completion of audit and approval.Review of adequacy of internal controls to review reports on inventory,completion reports of capital works, standard and specifications wherever

applicable.9) Review of Internal Audit paras.10) Review of AG Audit paras.11) Review of disciplinary cases.12) Review of vigilance activities. MRT, TAQC Wings and write offs

13) Review of power purchase cost.

39

-. - - - ------------------

25814) Review of borrowings.15) Discussions with Statutory Auditors and cost Auditors regarding their

reports.16) Any other matters as may be referred to by the Board.During 2014-15 and during 2015-16(upto the date of AGM), the AuditCommittee met four times as below:

Sl. No. Meeting No. Held on

1 24th 18.08.2014

2 25th 12.1l.2014

3 26th 22.12.2014

4 27th 05.06.2015

(4) CSR Committee:As stipulated under section 135 of the Companies Act 2013 every

Company having a net worth of rupees five hundred crores or more, or Vturnover of rupees one thousand crores or more or net profit of rupees fivecrores or more during any financial year shall constitute a Corporate SocialResponsibility Committee of the Board consisting of three or more Directors,out of which at least one director shall be an independent director. Accordingto the said provisions under Companies Act 2013, BESCOM is required toconstitute the CSR Committee since the net worth of BESCOM at the end offinancial year 2014-15 is Rs.l355.51 crores and turnover is Rs.13716.64crores. Board at its 69th meeting held on 25.07.2015 constituted the CSRCommittee with the members comprising the following Directors:

1) Sri. P. Ravi Kumar, IAS.,2) Sri. Pankaj Kumar Pandey, lAS.,3) Sri. Nagesh.H, B.E., FIE.,4) Sri. Guru Prasad. B.L, IRS.,5) Sri. T.H.M.Kumar, IAS.,

: Chairman: Member: Member: Member: Member

The Board of every company referred to in section 135 sub-section( 1), shallensure that the company spends, in every financial year, at least two percent ofthe average net profits of the company made during the three immediatelypreceding financial years, in pursuance of its Corporate Social ResponsibilityPolicy. However, since in the past years except during FY 2013-14 and during FY2014-15, the Company (BESCOIvI) has incurred loss to an extent of Rs.665.31crores and accumulated loss still to be set off to an extent of Rs.475.76 crores ason 3l.03.2015 [Profit during FY 2013-14 and 2014-15 is Rs.76.10 crores andRs.113.44 crores respectively]. In view of this Board of Directors has decided notto recommend for declaration of any dividend for the financial year 2014-15 andthe profit component will be transferred to 'reserve'

40

259

(5) Statutory Auditors:The C & AG of India has appointed Mis. V.K.Niranjan & Co.,

Kurubura sangha Building, 202 and 204 Kanakadasa Circle, Kalidasamarga, Gandhi Nagar, Bengaluru as Statutory Auditors for auditing theaccounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditorshave completed theaudit and have submitted their report as per statutory requirement.

(6) Cost Auditors:The Board of BESCOM has appointed Mis. Rao, Murthy &

Associates, Cost Accountants, No.23/33, Surveyor's Street,Basavanagudi, Bengaluru -560 004 as Cost Auditors for auditing the costaccounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditors have completed theaudit and have submitted their report as per statutory requirement.

(7) Secretarial Auditors:

The Board of BESCOM has appointed Mls.P.K.Pande & Associates,a firm of Company Secretaries, No.139, Shalimar Galaxy, l " Main Road,Sheshadripuram, Bengaluru-560 020 as Secretarial Auditors for auditingthe accounts of BESCOM for the Financial Year 2014-15 as per theprovisions of Companies Act 2013. The said auditors have completed theaudit and have submitted their report as per statutory requirement.

XXIII. DIRECTORS' RESPONSIBILITY STATEMENT:

Pursuant to the requirement under section 134 sub-section (3) of theCompanies Act 2013 with regard to "Directors' Responsibility Statement", it ishereby confirmed that:

(1) In the preparation of the Annual Accounts, the applicable accountingstandards have been followed along with the proper explanation relating tomaterial departures;

(2)Accounting policies have been selected and applied consistently andjudgments and estimates are made that are responsible and prudent so as togive and fair view of the state of affairs of the Company at the end of theFinancial Year and of the profit or loss of the Company for that period;

(3) Proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act forsafeguarding the assets of the Company and for preventing and detectingfrauds and other irregularities and

(4) Annual accounts have been prepared on a going concern basis.

41

-------------------------------------------- -

260

GENERAL:

Board would like to place on record its appreciation for all the assistanceand guidance extended by the Government of India, Governrnent of Karnataka,

i

Karnataka Power Transmission Corporation Limited, CERC,KERC, Ministry ofCorporate Affairs, Registrar of Companies, Karnataka and Consumers ofBESCOM for their Co-operation and support to BESCOM in its endeavor to servethe public. Board would also like to place on record its appreciation for thededicated and committed service rendered by the employees of the company andco-operation extended by the Union and Associations.

For & on behalf of the Board of Directors

sd/CHAIRMAN

42

13th Annual Accounts1

J 2014 15)

~ -

BESCOM

Bangalore Electricity SupplyCompany Limited.

262

COMlVIENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA

VNDER SECTION 143(6)(b) OF THE COMPNIES ACT, 2013 ON THE

FINANCIAL STATElVIENTS OF BANGALORE ELECTRICITY SUPPLY

COMPANY LIlVlITED, BANGALORE FOR THE YEAR ENDED 31 lVlARCH2015

The preparation of financial statements of Bangalore Electricity Supply

Company Limited, Bangalore for the year ended 31 March 2015 in accordance with

the financial reporting framework prescribed under the Companies Act, 2013 is the

responsibility of the management of the company. The statutory auditor appointed by

the Comptroller and Auditor General of India under section 139(5) 'J[ the Act is

Act based on independent audit in accordance with the standards on auditing prescribed

under section 143(10) of the Act. This is stated to have been done by them vide theirAudit Report dated 18.09.2015.

I, on the behalf of the Comptroller and Auditor General of India, have conducted

a supplementary audit uns!~!.i!~£t_i_Qll_J_43(Qlu!Lofth_~AGLQLthe-.fmanciaLstatements_of .. . _- ._._---- .._----- ...._--_._ -----,- --_. --~------ -------------_ .._---- -

re::;~0nsiblc for expressing 0.P~11~unOIl the financial statements under section 14j of the

BangaJore EI~('trkity ·~~rr.::'!~TC~~P:·lnY Limited, Bangalorc for the year Cil\:lc;J

31 March 2015. This supplementary audit has been carried out independently without

access to the working papers of the statutory auditors and is limited primarily to

inquiries of the statutory auditors and company personnel and a selective examination of

some of the accounting records. In view of the revisions made in the financial

statements by the management, as a result of my audit observations highlighted during

supplementary audit as indicated in the Note No. 30.25 of the financial statements, I

have no further comments to offer upon or supplement to the statutory auditors' report,under section 143(6)(b) of the Act.

For and on the behalf of theComptroller & Auditor Genera] of India

~~

(BIJJT K1T\L~ IYIlJKHERJEE)ACCOUNTANT GENERAL

(ECONOlVllC & REVENUE SECTOR .\1,'1)11".

RclOgaloreDate: 24.09.2015

rrAl <V.!J(. dVbtanJan &c:~ Chartered Accountants

({JOffice 222~~~

222~OTelefax : 2291 0027

~,----------------------~--------------~~H.O. : Kurubara Sangha Building, 202 &. 204, Kanakadasa Circie, Kalidasa Marga,

Gandhinagar, BENGALURU - 560 009. E-mail: [email protected]

Ref. No.:

B-5042.1P/1976112015-16

Date : "

18/09/2015

INDEPENDENT AUDITORS' REPORTTO THE MEMBERS OF BANGALORE ELECTRICITY SUPPLY COMPANYLIMITED

Pursuant to the observations made by Comptroller and Auditor General of India under section143(7) of the companies Act, the accounts approved by the Board of Directors on 15.09.2014have been revised, this report supersedes our earlier report dated 03.08.2015. The report isrevised to incorporate the observations made by the Comptroller and Auditor General of India onthe financial statements and books of account of the company. The impact of the revision in theaccounts of the company is stated in note number 30.25

Report on the Financial Statements;

We have audited the accompanying financial statements of BANGALORE ELECTRICITYSUPPLY COMPAl\ry LIMITED ("the company"),which comprise the Balance Sheet as at 31March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended,and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements;

The Company's Board of Directors and management is responsible for the matters in sectionl34(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financialstatements that give a true and fair view of the financial position, financial performance and cashflows of the Company in accordance with the accounting principles generally accepted in India,including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 ofthe Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance ofadequate accounting records in accordance with the provision of the Act for safeguarding of theassets of the Company and for preventing and detecting the frauds and other irregularities;selection and application of appropriate accounting policies; making judgments and estimatesthat are reasonable and prudent; and design, implementation and maintenance of internalfinancial control, that were operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation and presentation of the financial statementsthat give a true and fair view and are free from material misstatement, whether due to fraud orerror.

Branches: 50, Arnaravatni Nagar, Arurnbakkarn CHENNAI - 600 036 t: ;')'H'

# 106 B Ground Floor, Ven981 Pal) t'..laqar, HYOERAB.A.D . ,))0 I.,y_,

TIRUVALL,A f<ERAL,c.),& BENGP.,UJFU

Q/3( dVl'UlJ2jaJl & Cle.Chartered Accountants

264

Auditor's Responsibility;

Our responsibility is to express an opinion on these financial statements based on our audit. Wehave taken into account the provisions of the Act, the accounting and auditing standards andmatters which are required to be included in the audit report under the provisions of the Act andthe Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the financial statements arefree from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considersinternal financial control relevant to the Company's preparation of the financial statements thatgive true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of accounting policies usedand the reasonableness of the accounting estimates made by Company's Directors, as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion on the financial statements.

Basis for Qualified Opinion

1. Remittances and transfers (rom/to head office: The Company is showing balances of

Rs -28.74 lacs (P. Y. Rs 125.74 lac) under other current assets as remittances-in-transit.

The impact of above stated balance on the financial statement is an understatement of

other current assets and its contra effect is not readily ascertainable.

2. Accrual system: As per section 128(1) of the Companies Act, 2013, proper books of

account shall not be deemed to be kept if such books are not kept 011 accrual basis and

according to the double entry system of accounting. As stated ill Significant accounting

policy no.2, the company recognizes the transactions pertaining to grants and subsidies

from the Government in respect of capital assets on receipt basis, which is contrary to

the accrual system of accounting as essential under section 128(1) of the CompaniesAct, 2013.

<11.9(. dVltai!fan, &~.Chartered Accountants

265

3. Deviations (romAccounting Standards:

a. Accounting Standard 2 in relation to Valuation of Inventory: The Company isrequired to value its inventoriesat lower of cost or net realizable value. However,the company values its inventories at standard rates. The company does notconsider the net realizable value of its inventories. The impact of such deviationfrom the accounting standard is not ascertainable.

b. Accounting standard 6 in relation to Depreciation accounting: The Companyhas charged depreciationasper KERCICERC rules, i.e.for full month in whichassets wereput to use. As per accounting standard 6, the statute governing anenterprise may provide the basis for computation of the depreciation. As percompaniesAct 2013, the depreciationshall be calculatedon aprorate basisfromthe date of such addition. The impact of the above deviationfrom the accountingstandard is not readily ascertainable.

c. Accounting Standard 15 in relation to Employee Benefits: The Company hasprovided provision for retirement benefits as per actuarial valuation made on31.03.2012 and leave encashment on accrual basis is contrary to AccountingStandard - 15 - Employee Benefits, which requires the actuarial valuation to bemade every year. The impact of the above deviation from the accountingstandard is not readilyascertainable.

d. Accounting Standard - 22 in relation to Accounting (or Taxes on Income: TheCompany has not provided for deferred tax asset/liability. The company hasneither provided for deferred tax asset/liabi/ity on account of timing differenceswhich would reverse after the expiry of tax holiday period. The impact of suchnon-provisioning of the timing differences mentioned above on the financialstatement of the company is not ascertainable.

4. Short recognition of interest: Deposit made infixed deposit account no: 64131380598with state bank of Mysore of Rs.3,31,97,211 was renewed on 22.06.2014 with maturitydate 03.09.2015. Interest amount to be recognized in the books from 22106/2014to31103/2015 is Rs. 19,94,788 but actual amount is calculated from 27101/2015to31103/2015and recognized is Rs. 4 51,118 i.e. 64 days instead of 283 days.Thereforeshort recognition of interest of Rs.15, 43,670 leads to understatement of profit for theyear.

5. Depreciation on intangible assets:Depreciationon software and software rights has notbeen charged on opening balance of assets of Rs. 71, 35,689 and on addi~ons madeduring the year of Rs.2, 11, 40,340, as a result there is overstatement~profit andasset.The quantum of over statement is not ascertainable.

<1/3(. ~'UlJljaJ1, & flD.Chartered Accountants

266

6. Rate fluctuation in power purchase during the previous yearsof Rs.248, 35, 92,0791-isrecognized as other incomefor theyear instead of treating it asprior period income.

7. Corporate social responsibility committee has not been constituted as per section135(1) of companies' act 2013.

8. Capital Work in progress: We have observedin many divisionsproper asset register notmaintained for the works completed. For the works completed completion certificatehas not been obtained, hence the work completed has not been capitalized. For e.g.indivisions like Hiriyur, Tumkur, Indira Nagar, Kengeri, KGF, Ramnagar, Madhugirietc.

9. Balance Confirmation:

a. The Company has not obtained confirmation and reconciled the balances as 011

31.03.2015 from/to KPTCL, KPCL, and PCKL, sundry debtors, sundrycreditors, advances, deposits from/to suppliers 1 contractors 1 governmentauthoritieslconsumersl employees, loans and other receivables from variousparties.

10. An Abstract of monetary effect of the above mentioned qualifications (to the extentquantifiable) on thefinancial statements of the company are asfollows:

(Amount in lakhs of Rs)

Category Overstatedl(understated)

A. Net loss (15.43)

B. Current Asset (44.17)

c. Reserve andSurplus Losses as (15.43)

at 3110312015

Opinion

In our opinion and to the best of our information and according to the explanations given to us,the aforesaid financial statements, give the information required by the Act in the manner sorequired and give a true and fair view in conformity with the accounting principles generallyaccepted in India;

CV9( dVlumjaJl & Co.Chartered Accountants

267

a) In the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 20 15;b) In the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

andc) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Emphasis of Matters

We draw attentionto the following mattersin the Notes to the financial statements: .

a. Note no 30.2.1 regarding certain loans availed by KPTCL transferred to BESCOM and

reflected as loans in the books of the company.

b. Note no. 30.3.5 regarding non provisioning for expenses relating to transfer of titles of

certain assets transferredby KPTCL.

c. Note no. 30.5.2 regarding accounting of excess or shortages found on physical verification of

inventories pending final investigation.

d. Note no. 30.7.1 regarding accounting of contingent liabilities I assets are not ascertained on

contractsremaining to be executed.

e. Note no. 30.8 Regarding Inter Unit Accounts are subject to reconciliation/adjustments to the

extent ofRs.l06.24 crore (Credit),Previous Year Rs. 35.19 crore (Credit).

f. Note no. 30.16 regarding non disclosures of payables to SMEs if any.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued bythe Central Government of India in terms of sub-section (II) of Section 143 of the Act,we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the

Order,to the extent applicable.

2.' Compliance to directions issued by C&A G of India uls 143(5) of companies Act 2013 are

given in the annexure II of the auditors' report.

3. As requiredby section 143(3) of the Act, we reportthat:

a) We have sought and obtained all the information and explanations which to the best of our

knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by the Companyso far as appears from our examination of those books and proper returnS adequate for the

purposes of our audit have been received from the Divisions not visited by us.

'1/9(.dVl'UJJ2jaJl & (j,.Chartered Accountants'

268

c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with bythis Report are in agreement with the books of account and the trial balances were received from

the divisions not visited by us.

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards.Specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules,2014 Except for the matter described in the basis for qualified opinion paragraph above.

e) On the basis of written representations received from the directors as on 31 March, 2015,taken on record by the Board of Directors, none of the directors is disqualified as on 31 March,

2015, from being appointed as a director in terms of Section 164(2) of the Act.

1) In our opinion and to the best of our information and according to the explanations given tous, we report as under with respect to the other matters included in the Auditor's Report in

accordance with rule II of Companies (Audit and Auditors) Rules, 2014.

i) There were no pending litigations which would have an impact on the financial

position of the company.

ii) The Company did not have anylong term contracts including derivative contracts for

which there were any material foreseeable losses.

iii). There were no amounts which required to be transferred to the Investor

Education and Protection Fund by the Company.

Place: BENGALURUDated: 18/09/2015

FOR V K NIRANJAN & COChartered AccountantsFirm's Reg. No. 002468S

FCA NIRANJAN V K

PARTNERMNo.021432

269

ANNEXURE I TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of BAN GALOREELECTRICITY SUPPLY COMPANYLIMITED ("the Company") for the year ended31st March 2015,we report that;

i) In respect of Fixed Assets:

Q. The company has maintained records, but particulars like quantity and situation of allthe fixed assets are not maintained. The Company isyet to obtain title deeds/relevantdocuments of certain lands/bui/dingsreflected in the note 10 in relation tofixed assets.

b. As explained to us, the company hasphysically verified itemsfalling under categoryofOffice Equipments, T&P materials (Almairahs, Chairs, and Tables etc.), Computer andPeripherals, Vehicles, Buildings and Civil works at regular intervals. Based on theinformation and explanations given to us by the company, they have not noticed anymaterial discrepancies on such verification as compared with the limited recordsavailable.

However, the company has not conducted a physical verification in respect of plant&machinery and lines & cablesduring the year. Hence we are unable to comment onthe adequacy or otherwise of the regularityof physical verification of such assets.

ii) In respect of its inventories:

a. As explained to us, inventories lying in the stores of the company have beenphysically verified by the management during the year. In our opinion, frequencyof verification is reasonable.

b. In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c. The Company is maintaining proper records of inventory situated at company'spremises. As explained to us, there was no material discrepancies noticed onphysical verification of inventories as compared to the book records.However, theminor discrepancies of inventories are accounted for in the books of account(Excess stock of Rs2.46crore and a shortfall of Rs 1.84 crore - net being excessRs. 0.62 crore).

270

iii) The company has no transactions covered under section 189 of the CompaniesAct, 2013. Hence commenting on the entry in the register maintained undersection 189 and its prices being reasonable having regard to prevailing marketprices at the relevant time does not arise.

iv) In our opinion and according to the information and explanations given to us,there are adequate internal control systems commensurate with the size of theCompany and the nature of its business for the purchase of inventories, fixedassets and rendering of services.In our opinion, the existing internal controland internal audit system is ineffective and not commensurate with the sizeof the company and the nature of its business, due to lack of proper InternalAudit, Reports, presentation, periodicity, inadequacy of coverage byinventory.There is no internal control system relating to store maintenance,fixed assets accounting withproper classification details.

v) There is no continuing failure in correcting major weakness in the internalcontrol system.

vi) According to information and explanation given to us, the company has notaccepted any deposits under the provisions of Section 73 to 76 of theCompanies Act, 2013.

vii) Based on the information and explanations provided to us, maintenance of costrecords has been prescribed by the Central Government for the company. Wehave broadly reviewed the books of account maintained by the companypursuant to the Rules made by the Central Government for the maintenance ofcost records under section 148 (1) of the Companies Act 2013 and are of theopinion that prima-facie, the prescribed accounts and records have been madeand maintained.

viii) In respect of statutory dues:

a. According to the records of the Company, undisputed statutory dues includingProvident Fund, Income Tax, Sales Tax, Service Tax, Excise Duty, Cess, andother statutory dues have been regularly deposited with the appropriate authorities.However, there are some short deductionsand delays in remitting the taxdeducted at source to the concernedauthorities.

271

b. According to the information and explanations given to us, the company has notd ited the foll deposite teo owmg statutory ues on account of disputes:

Name of the Nature of the Amount of tax Period to Forum of

Statute dues involved (in which the dispute

crore Rs) amount relates

Income tax Act, Income tax 12.56 AY 2004-05 CIT, Appeals

1961 (I), Bangalore

Income tax Act, Income tax 61.07 AY 2005-06 High Court of

1961 Kamataka

Kamataka Electricity tax 9.63 F Y 2008-09 Chief

Electricity Electrical

(Taxation on Inspector to

Consumption) Government

Act 1959 (CEIG),Bangalore

Income tax Act, Income tax (7.52 c/floss) AY 2009-10 CIT, Appeals

1961(I), Bangalore

Income tax Act, Income Tax 17.52 AY 2010-11 CIT,

1961Appeals(I),Bangalore

a. There were no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

ix) The company's accumulated losses at the end of the financial year (withoutgiving effect to the qualifications as stated in our report) does not exceed 50percent of its net worth.The company hasnot incurred cash losses in thefinancial year under audit and in the immediatelypreceding financial year.

x) Based on our audit and according to the information and explanations given tous, we are of the opinion that the Company has not defaulted in repayment of

dues to fmancial institutions or banks.

xi) According to information and explanation given to us, the company has notgiven any guarantee for the loans taken by others from banks or fmancial

institutions.

272

xii) The term loans availed by the company have been applied for the purposes forwhich such loans are availed.

xiii) According to the information and explanations given to us and overallexamination of the balance sheet of the company, we report that no fraud on orby the company has been noticed or reported during the year under audit.

BENGALURU18/09/2015

For V.K Niranjan and Co.Chartered AccountantsFirm's Reg. No. 002468S

~C A Niranjan V K

PartnerMembership NO.021432

rv.9( dVl'U1JljQJl & Cle.Chartered Accountants

273

ANNEXURE II TO THE AUDITORS' REPORTDirections under section 143(5) of Companies Act 2013

Sl. DirectionsNo.1 If the Company has been selected for disinvestment, a complete status report in terms of

valuation of Assets (including intangible assets and land) and Liabilities (includingCommitted and General Reserves) may be examined including the mode and present

stage of disinvestment process.

There is no disinvestment during the year. Valuation of Assets is accounted on

historical Cost on conventional basis. Hence, there is no scope for revaluation.

2 Please report whether there are any cases of waiver/write off of debts/loans/interest etc.,

if yes, the reasons there for and the amount involved.

There are no cases of Waiver I Write off debts I Loansl Interest during FY2014-15

3 Whether proper records are maintained for inventories lying with third parties & assets

received as gift from Govt. or other authorities.

There is a exclusive account code wherein inventory given to third parties is

accounted and controlled by the BESCOM.There are no assets received as gift from Govt. or other authorities.

4 A report on age -wise analysis of pending legal/arbitration cases including the reasonsof pendency and existence/ effectiveness of a monitoring mechanism for expenditure on

all legal cases(foreign and local) may be given.

Information is not provided relating age-wise analysis of pending legal/arbitration

cases including the reasons of pendency existence! effectiveness of a monitoring

mechanism for expenditure on all legal cases(foreign and local).

However Revenue appeals statistics are given below:

Sl. Particulars BMAZ BRAZ CZ TotalNo.

CURRENTYEAR

1 No. of Appeal casespending as on 31-03- 348 83 31 462

2015

2Amount involved (Rs. 2326.76 95.88 39.33 2461.97in Lakhs)

3 PREVIOUS 354 109 30 493

<V!J( cdV£'WLjaJ2 & flo.Chartered Accountants

274

YEAR

No. of Appeal casespending as on 31-03-2014

4Amount involved (Rs.

2383.11 91.69 36.41 2511.21in Lakhs)

Additional Company Specific Directions:

a. Report on the efficacy of the system of billing and collection of revenue in the Company.Whether tamper proof meters have been installed for all consumers? If not then, examinehow accuracy of billing was ensured.

As per codal on distribution of energy issued by KERC, BESCOM is having all theinstallations aremetered except Irrigation Pump sets which is monitored at FeederlDTC levelmetering.Meters are of Electromechanical & electrostaticalnature.

Billing and Collection is tamper proof with identityManagement is put into use wherein eachand every activity concerning Demand and collection is password protected and systemdriven,thereby there is a mechanism of validation of Billing accuracy with respect to ratevalidation,sales validationand relatedissues.

b. Whether the reconciliation of receivables and payables between the generation,distribution and transmission companies has been completed. The reasons for differencemay be examined.

There is a periodical reconciliation on power purchase activity. Reconciliation of InterESCOM receivables and payables i.e., between BESCOM and CESCOM or BESCOM &MESCOM in respect of material and other transfer is not done periodically since impact isminimal, confirmation is pending from other ESCOMS.

c. Whether the Company recovers and accounts, the State Electricity RegulatoryCommission (SERC) approved Fuel and Power Purchase Adjustment Cost (FPPCA)?

KERC has put in quarterly mechanism for arriving at FAC for each quarter based on salesmix and certified by CharteredAccountant asprescribed by KERC.

Q!3(.dVl'UJJ1fan 5- eo.Chartered Accountants

275

d. How much tariff roll back subsidies have been allowed and booked in the accountsduring the year? Whether the same is being reimbursed regularly by the StateGovernment?

There is no roll back of any subsidy (Both revenue and Capital)for Current Year.

e. If the audited entity has computerized its operations or part of it, assess and report, howmuch of the data in the company is in electronic format, which of the area such .asaccounting, sales personnel information, pay roll, inventory etc. have been computerizedand the company has evolved proper security policy for datalsoftwarelhardware?

Presently, all the issues relating to Revenue is computerized up to the level of generation ofMIS report.BESCOM utilizes this corereportfor accounting & recognizing the revenue.

" The other aspects as such payroll, Invento_ry,Capex,Assetisation, Cash Management etc., arenot in the electronic format. Computerization of all these aspects is under process of initialstage.

There is a security policy for data/software/hardwareprotection by exclusive section underIDAM (identity management).

BENGALURU18/09/2015

For V.K Niranjan and Co.Chartered AccountantsFinm~eg.No.002468S»:C A Niranjan V K

PartnerMembership No.021432

276

ADDENDUMTO DIRECTORSREPORTfor the year 31st March 2015

Replies offered on the observation/ comments of the Statutory Auditorson the accounts of the company for the year 2014-15 are as follows

Deviationsfrom AccountingStandards:

Accounting Standard 2 in relation toValuation of Inventory: The Company isrequired to value its inventories at lowerof cost or net realizablevalue. However,the company values its inventories atstandard rates. The company does notconsider the net realizable value of its

1 Remittances and transfers from/ to head Factual - In the course of regularoffice: The company is showing balances transaction, certain remittancesof Rs (-)28.74 lacs (P.Y. Rs 125.74 lac) made during closure period ofunder other current assetsas remittances- Accounts (Last week of Mar) willin-transit. The impact of above stated be transferred to main account bybalance on the financial statement is an concerned Basnk in the first weekunderstatement of other current assets of Apr, thereby those items are

and its contra effect is not readily kept under transit

ascertainable.

2 Accrual system: As per section 128(1) of Factual- Grants and subsidiesthe Companiesact, 2013, proper books of received from the Government in

___ ~KcguntshalLnot be deemed to be ~~Q_t)L_I~spectof c~ital assets is accounted ~ __such books are not kept on accrual basis on _~eq;ipt basis only becauseand according to the doubleentry system company cannot quantify or assesof accounting. As stated in Significant the capital grant /Capital Subsidy foraccounting policy No.2, the company taking into books.recognizes the transactions pertaining togrants and subsidiesfrom the Governmentin respect of capital assets on receiptbasis, which is contrary to the accrualsystem of accounting as essential undersection 128(1) of the Companies Act,

2013.

- ~------.----------

II

3

a:

As per prudent practice, theCompany values its inventory asper Standard rate arrived bytaking present market rate andStandard rates are revisedperiodically on regular basis. Therequired accounting treatment forthe difference in purchase valueand Standard value is dealt in theBooks (Material Cost Variance )

277

inventories. The impact of such deviationfrom the accounting standard is notascertainable.

as per stipulated procedure. Netrealizable value of each itemcannot be arrived due tolargeness of volume of itemsreceipted and issued in the storehouse. The Company is having arobust system of accounting ofdifference of Purchase andStandard rate 1D the books ofaccounts. Hence, implementationof AS 2 may not be possible dueto volume of work involved in dayto day receipt and issue ,which isvery high and also involvesindividual items of the nature ofInsulators, Pot Heads, bolts,Nuts, structural, etc., anyhowCompany will contemplateprocedure for implementation ofAS 2 in FY2015-16.

b Accounting standard 6 in relation to The Company is following theo-epreci atron -,lccoonting-:--Th-e--C()mp-a-rT'1- -rrrethm:t-of----Depreciation---o-n- ----------

has charged depreciation as per monthly prorate basis instead of

KERCjCERCrules, i.e. for full month in date of asset put into use andwhich assets were put to use. As per governed by CERC guidelines foraccounting standard 6, the statute Depreciation prOViSIOn since

governing an enterprise may provide the inception and KERC hasbasis for computation of the depreciation approved the same while.As per Companies Act 2013, the approving the tariff orders

depreciation shall be calculated on a regularly and Company will takeup the issue with CERC forfurther guidelines in this matter.Apart from this, the largeness oftransaction relating toAssetisation is voluminous and inthe absence of automated systemfor calculation of depreciation onprorate basis corresponding toAsset commissioned will be a

daunting task.

prorate basis from the date of suchaddition. The impact of the abovedeviation from the accountingstandard isnot readily ascertainable.

278

c Accounting Standard 15 in relation to The Company has written toEmployee Benefits: The Company has KPTCL & Escoms P&G trust forprovided provision for retirement benefits arrival of Actuarial Valuation withas per actuarial valuation made on regard to employee benefit, The31.03.2012 and Leave encashment on Trust has appointed professional

accrual basis is contrary to Accounting agency for the purpose and the

Standard - 15- Employee Benefits, which Company will provide therequires the actuarial valuation to be employee benefits as per itsmade every year. The impact of the above communication from the next

deviation from the accounting standard is financial year,

not readily ascertainable.

d Accounting Standard -22 in relation to Factual

Accounting for Taxes on Income: TheCompany has not provided for deferred The Company has not recognized

I tax asset/liability. The company has ~ny deferred tax asset/liability asith 'd d f d f d titS mcome is exempt from tax

nel er provi e or e erre ax

t/I' b'l'ty t f ,,- under Section 80IA of the Income

asse la lion accoun 0 timing T A 1961 Th C h.' ax ct, ,e ompany as+_dlffererlces-wnICn-wQuld--rever:se-Elfter--tl:1e----------------.---- ------- -------------------1-------- .. ------

not provided for deferred taxovnin, rtf bv ncndav period Tho rncact of-"t-'oo J ~, -~" '~';~~1 _ •• ~ " -- asset/liability on account of I

such non- provisioning of the timing timing differences that woulddifferences mentioned above on thefinancial statement of the Company is not

ascertainable.

reverse after the tax holidayperiod, However, the Companywill provide for deferred taxsubsequent to its tax holidayperiod, Also, the quantum of suchnon-provisioning for deferred taxis not readily ascertainable andhence not provided in our books

of accounts,

4. Short recognition of interest: Deposit Factual- The necessary correction

made in fixed deposit account no: and corresponding accounting

64131380598 with State Bank of Mysore treatment will be dealt in FY2015-16

of Rs.3,31,97,211 was renewed on

22.06.2014 with maturity date

03.09.2015. Interest amount to berecognized in the books from 22.06.2014

liL__ ~to_3_1_.0_3_.2_0_1_5_is__R_s._l_9~,9_4~,7_8_8_b_ut__ac_tu_a_I~ _j

279

5. Depreciation on intangible assets: Factual- The necessary correction

Depreciation on software and software and corresponding accounting

rights has not been charqed on opening treatment will be dealt in FY 2015-16

balance of assets of Rs. 71,35,689 and on

additions made during the year of Rs. I

2,11,40,340 as a result there is

overstatement of profit and asset. The

quantum of over statement is not

ascertainable.

amount is calculated from 27.01.2015 to

31.03.2015 and recognized is Rs. 4,51,118

i.e. 64 days instead of 283 days. Therefore

short recognition of interest of Rs.

15:43.670 leads to understatement of

profit for the year.

income.

6. Rate fluctuation in power purchase during As per prudence practice any rate

- .... - -I· ··I;'~~!:~i~~ta~e~~~e~Fn~~~~'J!'~~t:~~~~~i~:~:~~~~~~~i~~da~db:a~~~~f-- -instead of treating it as prior period under "Note-24- Purchase of Power"

only as a distinct iter!").

As the power purchase expenditure 1'1

is significant and amounts to more

than 90% of companies tote I Iexpenses, all the transactions

relating to Power purchase is brought

under "Note-24- Purchase of Power"

Apart from this, the crystallization of

rate variations/ fluctuation happens

in the year of accounting only thereby

not accounted under prior period but

treated as other income

\

9 Balance Confirmation: The Company has Transactions pertaining tonot obtained confirmation and reconciled ESCOMS, KPTCL, PCKL are

..- ----- -. + ··----r-th·e·b-arance5··-as-on- 51 :OT2arS--from/tcF rtaken---·to----the---bo-oks-- ··by---the·

I KPTCL, KPCL and PCKL, sundry debtors, Company as a pruclcn i J:-!lw;t.lcc

sundry creditors, advances, deposits based on notifications, orders

from/to suppliers/contractors/government and letters from notifiedauthorities/consumers/employees, loans authorities for the said purposes.and other receivables from various parties. Obtaining of confirmation for all

the transactions involves certainthings that are clearly outside thecontrol of the Company. However,the Company IS makingconsistent effort to obtain the

280

7. Corporate Social responsibility committee

has not been constituted as per section

135(1) of Companies Act 2013.

As stipulated under section 13S(1) of

the Companies Act 2013, Board at its

69th meeting held on 25.07.2015constituted the CSR Committee.

Action will be initiated to avoidsuch delay in getting CompletionCertificate and necessaryinstructions will be issued toadhere for proper maintenance ofAsset Register and categorizationof completed works immediatelyon completion/ commissioning ofthe asset & put into use byobtaining Technical Certificate /Commissioning Report

8 Capital Work in progress: We have

observed in many divisions proper asset

register not maintained for the works

completed. For the works completed

completion certificate has not been

obtained, hence the work completed has

not been capitalized. For e.g. in divisions

like Hiriyur, Tumkur, Indiranagar, Kengeri,

KGF, Ramnagar, Madhugiri etc.

confirmation.As far as confirmation of SundryDebtors is concerned, acceptanceof bills preferred and served asper tariff order in force IS

construed as confirmation.In relation to others i.e sundrycreditors, advances, depositsfrom/ to suppliers / contractors /government authorities /

10 An Abstract of monetary effect of theabove mentioned qualifications ( to theextent quantifiable) on the financialstatements of the company are asfollows:_____----------- ---------------- ----------------- --- -------f---- --~------------ - --------- --- ------ ------- --------~-

(Amount in iakhs uf KS)

281

Overstated/Understated

consumers / employees, loansand other receivables fromvarious parties , transactions aretaken to books based on orders,awards, notification for whichcorrectness IS authenticated,checked and counter checked byall the competent authorities.Also it may not be physicallypossible to obtain theconfirmation for suchtransactions as it involveslargeness in its volume.

It IS the combined effect onobservations of statutory auditorsfor which specific replies provided

as above.

I

Category

A. Net loss (15.43)

B. Current Asset (44.17)

C. Reserve and fir A'"""I'\ :J.'t.::»

Surplus Losses asat 31/03/2015

282

BESCOM

Bangalore Electricity Supply Company Limited

(Wholly owned Government of Karnataka Enterprise)

SIGNIFICANT ACCOUNTING POLICIES

1. Company overview

Bangalore Electricity Supply Company Limited ('BESCOM' or 'the company') is a

company registered under the Companies Act, 1956 incorporated on 30th April, 2002

and commenced its operations from 1st June, 2002. BESCOM is responsible for power

distribution in eight Jistricts of Karnataka (namely Bangalore Urban, Bangalore Rural,

Ramanagara, Chickkaballapura, Kolar, Tumkur, Chitradurga and Davanagere).

The KERC vide letter dated 30th Sep 2008 has intimated that as per first provision of

section 14 of the Electricity Act 2003, BESCOM has become a Deemed Licensee valid for

--- -a- period-o-f-25--years from-l0thJune--2004;------------------------------------- ------- ----

T~1eGo /ernment of Karnataka published vide their order No. DE 14 PSP, 20e '2 dated 31-

05-2002, the 2nd Transfer Scheme called Karnataka Electricity Reform (transfer of

undertakings of KPTCL and its personnel to electricity distribution and retail supply

Companies Rules, 20(;2) giving effect to the approval of distribution undertakings,

assets and liabilities and provisional opening Balance Sheet of KPTCL and BESCOM

based on the Annual Accounts of KPTCL as on 31-03-2001. As per the provisions of 2na

Transfer Scheme, after the stipulated period of one year i.e., by 31-05-2003, the same

became final. Opening Balance Sheet earlier approved and published vide G.O. and

Government notification dated 31-05-2002 read above were provisional and thereafter

Government had approved and issued final opening Balance Sheet of BESCOM as at 01-

06-2002 vide their order No. DE 48 PSR 2003 dated 31-05-2003jNo.DE 48 PSR 2003,

dated 07-10-2004.This has been notified and published as final. The changes effected

after the audit by KPTCL in the "transfer scheme" have been incorporated in the

accounts of the Company as per Annexure - 2 to Government Order NO.DE48 PSR 2003

dated 07-10-2004.

283

2 Basis of preparation

The financial statements are prepared on accrual basis of accounting (except in

cases as stated below) under historical cost convention in accordance with

generally accepted accounting principles in India and the relevant provisions of the

revised Schedule III of Companies Act, 2013 including accounting standards notified

thereunder and also in accordance with the provisions of Electritity (Supply) Act,

1948/ Electricity Act, 2003 where ever they are applicable to the company.

All items having a material bearing on the financial statements are recognized on

accrual basis except the following, which are accounted on receipt basis:

• Grants and subsidies from Government in respect of capital assets

• Insurance claims.

3 Use of estimates

The preparation of financial statements requires estimates and assumptions that

.. affect,tharaported.arnoun t ..at assets.i.lia bilities ,__reyenu e_&_expenses- du ring.the.i..; ---

lepvitilll'!, tJei iuJ. A1LilUugll Sudi esl.imates dUJ assuultJLiullS die IUdJe Ull a

reasonable and prudent basis taking into account all available information, actual

results could differ from these estimates and assumptions and such differences are

recognized in the period in which the results are crystallized.

Accounting estimates could change from period to period. The management

reviews its estimates and assumptions periodically and appropriate changes in

estimates are made as the management becomes aware of the changes in

circumstances surrounding the estimates.

4 Grants and Subsidies

4.1 Grants/subsidies received from the government or other authorities towards

capital expenditure as well as consumers' contribution to capital works are

treated initially as capital reserve and subsequently adjusted as income in

the same proportion as the depreciation written off on the assets acquired

out of the grants.

2844.2 Revenue grants/Tariff subsidies from the government and other agencies

are recognized as income only when there is reasonable assurance that the

conditions attached to them shall be complied with. and the grants will be

received and accounted on accrual basis.

5 Fixed assets and capital work-in-progress

A. TANGIBLE ASSETS

5.1 Fixed assets are carried at cost of acquisition or construction less

accumulated depreciation and impairment loss, if any. All costs, including

finance charges, foreign currency fluctuations till commencement of

commercial production/intended use attributable to fixed assets are

capitalized.

5.2 Expenditure on renovation and modernization of fixed assets resulting in

increased life and/or efficiency of an existing asset is added to the cost of

_ _ related __assets, _ _ ~~ ~ ~ ~_ -------- .. --." ._-- _._ ..

5.3 Released assets are accounted on withdrawal/capitalization at written-down

value (WDV).

B .Intangible assets

5.4 Intangible assets are recorded at the consideration paid/incurred for

acquisition of such assets and are carried at cost less accumulated

amortization and impairment, if any.

5.5 Impairment of Fixed Assets:

An impairment loss is recognised wherever the carrying amount of an asset

exceeds its recoverable amount. The recoverable amount is greater of the

asset's net selling price and value in use.

2855.6. Capital work-in-progress

(a) Materials issued to capital works-in-progress are accounted at cost of

purchase or scheduled standard rates (standard rates are determined

on the basis of previous purchases and prevailing market rates)

(b) Administrative and general overhead expenses attributable to

construction of fixed assets incurred till they are ready for their

intended use are identified and allocated on a systematic basis to the

cost of the related assets.

(c) Contracts at divisions are capitalized only on receipt of final

completion/technical/ commissioning reports.

Cd} The diminution in the value of-dismantled assets (re-usable and released

assets)is ascertained on review and provided for.

6. Foreign currency transactions and translations

... ._.6,L .__Foreign ..C.urr.em:y_1I"mS_(:li:li.Qns.a(ejnitiallY.J_efQ(ded-_aLthe_LaJeS_i2Le_xchange_---- ..- .

6.2 At the balance sheet date, foreign currency monetary items are reported

using the closing rate. Non-monetary items denominated in foreign currency

are reported at the exchange rate ruling at the dare of transaction.

L ')V..J Exchange differences arising

relating to fixed assets/capital work-in-progress to the extent regarded as an

adjustment to interest cost are treated as borrowing cost.

7 Borrowing costs

Borrowing costs relating to acquisition/construction of qualifying assets are

capitalized until the time all substantial activities necessary to prepare the

qualifying assets for their intended use are complete. A qualifying asset is one that

necessarily takes substantial period of time to get ready for its intended use. All

other borrowing costs not eligible for capitalization are charged to revenue.

286

8 Depreciation

8.1 KERC first amended the tariff regulation in respect of depreciation as per

notification No 13/01/2006 dated 31/05/2006.

8,2 Depreciation is charged on straight line method at the rates prescribed and

notified by the Central Electricity Regulatory Commission (CERC). The company

does not charge depreciation as per the rates prescribed under Schedule II of

the Companies Act, 2013.

8.3 Table below Show the rate of Depreciation

~~ per Schedule II of Companies !As per CERC( Notification No. L-

",.+ ,)0""7 /145/160/2008-CERC Dated

~"""" .... ..,.""19/01/2009)

Land & Rights Nil Nil

Buildingsa) Buildings other than Buildings

Factory Buildings 3.17 a) Hydro Electric/ 5.28Stream Electric/Diesel/Dams/Coolingtowers.

~~~-J) ~ --~~----------- _-----_._-- _ _QL_Q_ffi_~~s&_s_l!9~_~Qom~_ -,-----~--.--.------.-- ..-

b Factory Buildings 3.17 3.34 iCivi! works ll:'lpelme, I CIvIl works ll:'lpellne, I

ISewage, Drainage, Water 3.17 Sewage, Drainage, Water I 3.34

supply) supply)

Other Civil Works 3.17 Other Civii Works 5.28

Plant & Machinerya) Used in Generation, Plant & Machinery

Transmission and 2.71 a) Transformers of 100 5.28

Distribution of power KVA above & Below

b) Computers:

I Ii. Servers and networks 15.83 b) Communication 6.33Equipment',

ii. End users devices like 31.67 15.00

desktop, Laptop etc., c) Computers

Lines Cable Networks 2.71 Lines Cable Networks 5.28

Vehicles 11.88 Vehicles9.50

Furniture & Fixtures 9.50 Furniture & Fixtures6.33

Office Equipments 19.00 Office Equipments6.33

Residual value remains at 5% whereas CERCguidelines it is notified as 10%

2878.4 In case there is a revision in the rates prescribed and notified by the CERC, the

company applies the revised rates prospectively from the date of change

notified by the CERC without considering the revised useful life of the assets

concerned.

8.5 Depreciation on leasehold land is amortized over the period of lease.

8.6. The residual value of all the assets is 10 %

8.7 Assets costing Rs 500/- or below individually (as against Rs 5,000/- as per the

Companies Act, 2013) are fully depreciated in the year of acquisition.

8.8 Released assets are depreciated upto the date of dismantling.

8.9 Any addition to the asset base or deletion to the asset base, deprecation is

charged in proportion to month of addition or deletion

8.10 Where the life and/or efficiency of an asset is increased due to renovation and

modernization, the expenditure thereon along with the unamortized depreciable

amount is charged prospectively over the remaining useful life of the asset.

(standard rates are determined on the basis of previous purchases and

prevailing market rates)

10 Investments1(\ 1.l.V.J..

r,~__...............\.....oUtJ CJIL investments are valued at lower of cost and fair market .. ~1"~

val UC:

determined on an individual investment basis.

10.2 Long-term investments are carried at cost. Provision is made for diminution,

other than temporary, in the value of such investments.

28811 Retirement benefits

11.1 Pension & Gratuity are provided based on the revised rates prescribed by

'KPTCL & ESCOMs Pension & Gratuity Trusts' as per Order No. KPTCL

&ESCOMs P&G TRUSTS/KC0123/P7/2011-12/CYS07 dated 27TH May-13

which is based on Actuarial Valuation as on 31-03-2012. The rate of

contribution is 30.00% of basic and D.A. in the case of pension and 6.01 % of

basic in the case of Gratuity with effect from 01/04/2011.

11.2 Leave encashment is provided on the basis of estimates/accrual made by the

company and not on the basis of actuarial valuation.

12 Provision for bad and doubtful debts

12.1 The provision for bad & doubtful debts is maintained at 4% on the balance of

sundry debtors (exclusive of receivables from B}/K} installations and IP

sets) for sale of power of LT category outstanding as at the year-end and on

__. . . . __._.. . _ ___H'l'.consumers __s_pecifLcally:j_d_e_utified__QJ1__acase-ro-case.basis.. .

12.2 The provision for bad and doubtful debts in respect of arrears of IP sets and

B}/K} installations is maintained in the following pattern:

a. Dues outstanding for 2 years and above

b. Dues outstanding between 1 year and 2 years

c. Dues outstanding less than 1 year

75%

50%

Nil

13 Taxes on income

Provision for current tax is made after taking into consideration benefits admissible

under the provisions of the Income tax Act, 1961.

Minimum alternate tax (MAT) is considered as an asset if there is convinci ng

evidence that the company will pay normal income tax. Accordingly, MAl' is

recognized as an asset in the balance sheetwhen it is probable that future economic

benefit associated with it will flow into the company.

28914 Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of

past events and it is probable that an outflow of resources will be required to settle

the obligation in respect of which a reliable estimate can be made. Provisions

(excluding retirement benefits) are not discounted to their present value and are

determined based on the best estimate required to settle the obligation at the

balance sheet date. Contingent liabilities are disclosed on the basis of judgment of

the management. These are reviewed at each balance sheet date and are adjusted to

reflect the current estimate of the management.

15 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before

_____ ___ __ _~_xtr_aQr_djn___ar~-Ltems--and--ta-xj-s-a-dluste-d--fo-Lthe--e_ffe~ts_QLtr_a_nsactia ns __o f non-cash _

nature: and any deferrals cr accruals of past or future Cash receipts cr payments,

Cash comprises cash on hand and demand deposits with banks. Cash equivalents

are short-term balances (with an original maturity of three months or less from the

date of acquisition), highly liquid investments that are readily convertible into

known amounts of cash and which are subject to insignificant risk of changes in

.........1",...v cu u c,

16 Revenue recognition

Revenue from Operations:

16.1 Sale of power is accounted on accrual basis at the tariff rates approved by the

Karnataka Electricity Regulatory Commission (KERC). Revenue dues from

consumers whose ledger accounts are yet to be opened are accounted on an

estimated basis.The company accounts/discloses revenues net off electricity

taxesin its statement of profit and loss.

-- ------------------------- -------------

29016.2 Revenue for the year is adjusted by estimating un-billed revenue demandfor sale

of power to HT category on actual basis and a specified % on LT category for

the current year.

Other Incomes:

16.3 Income from services rendered is accounted based on the

agreements/arrangements with the concerned parties.

16.4 Cash discounts on Power Purchases prompt payments are accounted as and

when the related dues are settled.

l~.S Interest income is recognized en a time proportion basis taking into aCCOL~nt

the amount outstanding and rate applicable.

16.6 Revenue grants and subsidies are accounted as stated in para 4.2 above.

17 Leases

_._.__.. . 9_p_~~~ting___L~~sere~~_als__;~re_recog_~~~_9as_~n exE_ens~__iI!__!l!_~_~t~!~~~~~_~ .. _

18 Purchaseof power

18.1 The Power Purchase cost is recognized based on the Government of Karnataka

Order No. EN 131 PSR 2003 Dated 10th May 2005 and subsequent orders issued

from time to time for accounting the cost of power based on the billings made by

Power Generators Pool allocated to BESCOM by the Government of Karnataka.

The Company recognizes the quantum of power exported at the generating

plant as per allocation given by Government of Karnataka as per its latest order

dated 24.03.2010.

18.2 The Transmission cost on power purchase is recognized on the basis of total

generating capacity allocated to BESCOM as per Government of Karnataka order

dated 24.03.2010.

18.3 The Company has recognized the following as interface points for transmission

of pow€r:

29118.3.1 For EHT consumers, consumption recorded at EHT consumer

installations (66KV and above).

18.3.2 Readings recorded at 11 KV banks (interface points) existing ill

various sub-stations.

Itj.4 As per policy decision at the Government and in terms at Power Purchase

Agreement, KERC and CERC tariff order, the related power purchase cost

figures including interest for belated payments, publication charges and income

tax paid are shown on the basis of billing on "Delivered Energy" basis.

18.5 The supply of energy to the Company includes EHT supply at more than 66 KV

voitages at the interconnection points for transfer of power for bilimg by the

Company. The Company does not recognize any transmission loss on EHT

power in its books on purchase from KPTCL.

13.6 The Company accounts the power purchase from 10-6-2005 directly from Power

Generators Pool Account as per the energy allocation/ assignment by the.-~ .--...- ..~-~---- --- - -- ~--.-- ---- -~--._-_--_.-----------.----------~- - ._----_._- .------~---~~- ---

Government of Karnataka as per the Government order No. EN 131 PSR 2003

dated 10-05-2005 and subsequent orders issued from time to time. The rates

followed for the allocated/ assigned power purchases are based on the

commercial rates/ predetermined rates as approved by

PPA/CERC/KERC/Government of Karnataka,

18.7 The Transmission losses arising on account of Power Purchase from Generation

Point till interface point of Transmission are accounted by the Company as per

the information provided by PCKL / SLDC, KPTCL based on the proportionate

energy consumed. This is as per the said Government order.

19 Earnings per share

Basic earnings per share are computed by dividing the net profit after tax by the

weighted average number of equity shares outstanding during the period.

92

1 Shareholders' funds(a) Share capital 5469151000(b) Reserves and surplus 2

(A) Capital Reserve 17118986085(8) Others 15108 00 000(C) Profit/(Loss) -4757651 681

Sub Total (b) 1387 21 34 403

A

2 Non-current liabilities(a) Long-term borrowings 3(b) Deferred tax liabilities (net) 4(c) Other long-term liabilities 5(d) Long-term provisions 6

B3 Current liabilities

(a) Short-term borrowings 7(b) Trade payables 8

ft(c) Other current liabilities 9(d) Short-term provisions 10

C

TOTAL (A+B+C)

B

1 Non-current assets(a) Fixed assets

(i) Tangible assets 11 5057 49 89 101 383241 16703

(ii) Intangible assets 11 48653306 27557336

(iii) Capital work-in-progress 12 14240748981 12862409702

(iv) Intangible assets under development 13(v) Fixed assets held for sale

(b) Non-current investments 14 10 0100 000 1001 00 000

(c) Deferred tax assets (net) 4(d) Long-term loans and advances 15 677 79 71013

(e) Other non-current assets 16A

2 Current assets(a) Current investments 17(b) Inventories 18(c) Trade receivables 19(d) Cash and cash equivalents 20(e) Short-term loans and advances 21

(f) Other current assets 228

jiY't'""CA Niranjan. V.KPartnerM.No: 21432

Place:Date:

4

5

6

7

" 8

910

11

12

LI I L..U

2

Revenue from operationsOther IncomeTOTAL REVENUE

3 ExpensesPurchase of PowerOther operating expensesEmployee BenefitsExpenseOther expensesFinance costsTOTAL EXPENSES

Profits before Depreciation, Prior period items, exceptional items,extraordinary items, Income Tax (1+2-3)

Depreciation

I (Loss) before Prior period items, exceptional and extraordinaryitems and Income Tax (4-5)

Profit I (Loss) before Prior period items, extraordinary items and Tax7)

Prior period Items- {Expenses(+) I Income(-nExtraordinary& Priorperiod items {Expenses(+) I Income(-)}

Profit I (Loss) before Tax (8-9-10)

Income Tax Expense:(a) Current tax expense(b) Less: MAT credit(c) Deferredtax(d) Tax expensesrelatingto prioryears

13 Profit! (Loss) from continuing operations (11-12)

14 Profit I (Loss) from discontinuing operations

15 Profit I (Loss) for the year (13+14)

16 Earnings per equity share of Rs. 10 each.

(1) Basic(2) Diluted

2323A

2425262728

29

30

3132

3477928519

1997851 796

1480076723

228507802 434992916

1251568921 -4741507196

140367373 3067385245300

1391936294

257500000 49500

1134436294 761031

1134436294 761031 342

1.392.07

of Directors

t.~L (~..ky(Managing Director

Place:Date:

SI.No Particulars Current Year 2014-2015

A Cash Flow from Ollerating Activities

Net Profit before Tax 1391936294Adjustments for:Depreciation 1997851 796Financecost 3976620444Extraordinaryitems-TrueupSubsidyChangein Provisionfor Debtors 77481224Changein Provisionfor EmployeeadvancesChangein Provisionfor DismantledAssetsReversalof Depreciationon GrantsAsset (Other Income) ·1105038514Prior period charges(+)or credits(-) ·59261598IncomeTax ·257500000

Operating Profit before working capital changes 6022089646Adjustments for

Changesin Inventories ·456717173Changesin SundryDebtors ·786 93 02 033Changesin Short term Loansand Advances ·84112449Changesin Long term Loansand Advances 533467788Changesin Other CurrentAssets 1412934353Changesin CurrentLiabilities

Trade Payable 4429001602Other current liabilities ·25031 28964

Changesin Short term Provisions 268255800

"Changesin Longterm Provisions 73826724Changesin Other Long-TermLiabilities 4465846726

Operating Profit after working capital changes 6292162020Priorperiodcharges(+)or credits(-) 59261598Extraordinaryitems-Trueup Subsidy

Net Cash inflow from Operating Activities 6351423618

B Cash Flow from Investment Activities

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

CASH FLOW STATEMENTFORTHEYEAR ENDED31ST MARCH 2015

·14269820164·1378339279

Changesin FixedAssets (Net)Changesin CapitalWork in ProgressInvestments

Net Cash Outflow from Investment Activities ·156481 59443

Amount in Rs.2. ~ 4Previous Year 2013-14

81 0531 342

126182552032345436185245300000261105558

9204649·1226509 587

306738538·49500000

9853239638

·654764070·11652129021

-18308920·2511740 235

-81407477

589344391965646763343541588

·2967284452217891653344 95 06 263·306738538

-524 53 00 000·210 25 32 275

·73581 67663-28275 13468

·10185681131

C Cash Flow from Financing Activities

180000000Changesin Capital/ShareDeposit AccountChangesin SecuredLoansChangesin UnsecuredLoansChangesin Longt-Term BorrowingsChangesin Short-TermBorrowingsChangein Currentmaturitiesof long term

debts/CurrentliabilitiesFinancecost

Contributionsfrom Consumers/Reversalof DepreciationonGrantsAsset (Other Income)Other Income

13873 059768011490100

·397 66 20 444

3961217596

355800000

127704 27 756-212 38 54 698

403417940-3234543618

2733428751

10904676132

·1383537274

281 844860614349 11 33214349 11 332

Net Cashavailable from Financing Activities 9563393228

For V.K.Nlranjan & Co.

~Z!?'PartnerM.No:21432Place: Bangalore '"' ...Date f~·, Oq •dULs:'

\ ~ ~!b'h:f~f··:lL'''''~)<(K~!,ann 1 (B.. Guruprasad) (PankajKumarPandey)

~ cretary \ CFO'&'Director(Finance) ManagingDirector

DTh ~~t:e: r~rl~Qqt ~QI ~

266657403D Net Change in Cash and Cash equivalents -Surplus Cash [(Al + (B) +( C))Add: OpeningCashand Cash equivalents 1434911 332

17015687351701568735E Closing Cash and Cash equivalent:

!BUCOM

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 295NOTES TO THE FINANCIAL STATEMENTS

546915100

52.301

546915100Equity shares of Rs.101- each

Equity shares of Rs.101- each

Note 18 -Reconcilation

Note 1C -Percentage of Holding

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDD~BESCOM

296NOTESTO THE FINANCIAL STATEMENTS

BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED6~BEScaM

NOTES TO THE FINANCIAL STATEMENTS

297

Note 3A - Secured Loans

53.500 1141846017

6599954777 6999954777

53.5

Canara Bank 53.500For Rs.400 cr repayment within 13 years (includingmoratorium period of three,years) payble in 40 quarterlyinstalment of Rs. 10 Crore each. Interest to be paid as &when due, ROI for Rs.200 ers base rate + 0.5%pa(floating without spread reset) & ROI for RS.200 crsbase mte + 0.1'Iopa (floating without spread reset).Hypothecation of fixed assets of the company valued atRs.457.62 Crs .Flrst instalment due on 23.09.2013.&For Rs.370 crs Repayment in 40 quarterly installment ofRs.9.25crs each Interest to be paid as when due. ROIfor Rs.370crs base rate +1% presently 11.10% firstinstallment due on 24.01.2017. Hypotecation of Fixedassets of the Company valued at RS.417.09 crs.

3 fl~.,k nf !Ii!'!h'!r'!str'! 53.50(1

For RS.125 Cr The term of repayment in 28 quarter,27quaterly installment of Rs.4.47 Crs per quarter andRS.4.31 Crs in 28th quarter after inotial moratouriumperiod. ROI at B.R+0.10% & for Rs.27 ;.00 ersrepayment of Rs.9.28 crs per quarter &for 28th quarterRs.9.86crs after initial moratoirum period ROI atB.R.+0.10%:Hypotecation of Fixed assets of the Company valuedRs.139 Crs.

4 State Bank of MysoreRepayment within 13 years (including moratoriumperiod of three years) payble in 33 quarterly instalnientof Rs. 3.3 Grore each. at the end of 30 th instalment willbe of RS.3.43 Crs Interest to be paid as & when due.ROI for Rs 100ers base rate + 0.25% pa (fiotingwithout spread reset).

Sub-Total

1000000 000

1179 50 00 794 1205 27 54 771

BANGALOI~E ELECTRICITY SUPPLY COMPANY LIMITED


298

8 Term Loans from Others1 Loans from Rural Electrification Corporation

Limited, New Delhi. -APDRP Counter part funding

(Secured by Hypothecation of all existingunencumbered moveable properties includingmachinery, equipments, machinery spares, tools,implements, and accessories installed I created Ier'C'cL~U dllLi dii IUlult: I'lluvt::ab.'C' illduuill~IIldL.ilinCI)" Iequipmetns, machinery spares, tools, implements, andaccessories installed Icreaied Ierected in future and itsstock of materials squipments bought or to he boughtout of Ihe loan amount at 8.5% & 11.70% interest rates.

)

53.3327 220774100 41 7398490

2 PFC - RAPDRP (Part A) 53.347

The tenure of loan will be 10 years from iire date ofdisbursement including moratorium period of 3 years forboth Principal and inter=st. Interest to. be paid asnotified by Ministery of Finance from time to lime.'Secured by way of hypotecation on the newly financedassests under the project as securities for loan. Firstinstaiment due on ·is.ul.ltli~

14664 80 900 1466480900

3 RAPDRP PFC (8)The tenure of loan will be 20 years including moratoriumperiod of 5 years. The interest and interest tax on thesaid loan shall be borne by the Utility and shall begin toaccrue from the date of release of loan by Ministry ofPower .'Secured by way of hypotecation on the newlyfinanced assests under the project as securities forloan. First instalment falls due in the month of July-

2015

53.347

53.347

435420 000

150 95 97 409

41065742

3(a) RAPDRP PFC (8) (Counter part Funding)The loan shall be repaid in 60(SIXTY) equal quaterlyinstallments. The first installments become due on 15th

1

- - - day "i-october 2015 the subsequent installments willbecome due for payment C'l the 15th day of January,15th day of April, 15th day of July, 15th day of OctoberEvery year

4 PFC DRUM PROJECTThe loan shall be repaid by the Disribution Company in40 equal quarterly instalments. The first instalment willbecome due on 15th day of April 2008 Interest on the

.said loan at the rate of interest prevailing on the date of

leach disbursement. 'Secured by way of hypotecalion ofall assets created under the loan.Repayment due :The first Instalment will become

.,'ua on 15th day of April 2008

53.337

5 JICA (Japan International Co-Operative Agency)

The bank agrees 10 lend Ihe company an amount notAxr.eeding YFN 10043000000 ~~ Prinr.ip,,1 for DASunder relavence laws & Regulation of Japan. TheCompany repay prinicipal amount in accordance withamortization schedule setforth in the agreement. TheCompany shall pay the interest semiannuallyat the rateof three- fourth of one percent (0.75%)p.a

6 REC (Tl) NJY Phase 2 53.335Repayment with in 13years (including moratoriumperiod of 3 years) principle installment is payable inequal annual installments and on 15 th of the month inwhich Ihe first disbusement was made.the rate ofinterest @ 11.5 % P A'Secured by way of hypotecation of all assets createdunder the loan.

7 REC (TL) DTC Metering 53.335Repayment with in 13years (including moratoriumperiod of 3 years) principle installment is payable inequal annual installments and on 15 th of the month inwhich the first disbusement was made.the rate ofinterest @ 11.5 % P A'Secured by way of hypotecatiort of all assets createdunder the loan.

53.3402769727679

230 10-fj4 644

1364934209

1974522979

61598619

2609249302

1563319810

1181896020

•~BESeOM

BANGALORE ELECTRICITY 3UPPL Y COMPANY LIMITED


299

9341 14549

i2BlI 8::. Of btl3

110 6719413

(TL) HVDS 53.335

Repayment with in 13years (includingperiod of 3 years) principle installment is payable iequal annual installments and on 15 th of the month iwhich the first disbusement was made.the rateinterest @ 11 .5 % P A'Secured by way of hypotecation of all assetsunder the loan.REC (TL)UAIP 53.335 748659 01

53.335

Repayment with in 13years (includingof 3 years) principle installment is payable

annual installments and on 15 th of the r"''nththe first disbusement was made.the rate

1960 383(The repayments to be made i 20 annualinstalments together with interest at the rate 12%outstanding balance commencing from 20<)3-:20(14.1~owever, 50% of loans will enjoy 5 year initial graceperiod after which repayment of these loans will beeffected in 15 annual equal instalments.)Repayr.,ent as begun 2003-04

Interest free LoanGovemment of Kamataka has released interestInAn to RFRCOM toward. paymp.nt to power. sIIppli

supply of power to State Grid during 2008-09.Repayment :No terms & Condition given

9409

897787;:2Loan from Government (through REC) - RGGVY(The Total repayment period will be 15 yearsof 5years moratorium period together with interest5% - 12.25% with quarterly interest)

3336 010

Ii~BISCOM

BANGALOREELECTRICITYSUPPLY COMPAi-lYLIMITED 300NotES TO THE FINANCIAL STATEMENTS

Loan from GoK forfor a period of ten yearsspecific Term & Conditions Given However asNo FD 01BLA 2002 dated:10.07.2003 Loan for a 53.3417 2940 4410

53.3367 5410

annum.Repayment begun in 2007-08Term Loan from PFC

(The loan amount is accounted as per the adviseKPTCL and it comprising of various loans withterms and conditions. Interest varies from 10.75% - 11

53.960 181 2800291

Sub-Total

ii) Deposit Works

47.301 to47.303,47.305,

47.307 to47.317,47.321,

47.306

47

47.6

1792090

52856

8551 45

27463460

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED6"-IaBeOM


Provision for Employee BenefitsProvision for Gratutiy,Pension,Leave encashment, PF & 44.122,1Family Benefit Fund 0,140

payment of Rs.l00 Crores within one year whithoption to repay instalment also, Monthly interest to

be serviced regularly at BR+.15% presently 10.65%P.A) Repayment due on 07.05.2012

Vljaya Bank'STL for a period of 270days. To be repayed onday of first drawal and interest· to be serviced aswhen debited at 10.45% p.a(fJoting) l.e., base rate ofbank. Securities: Floating charge on Book debts ofCompany with 10% Margin for 150 Crs.

starts on 1310612012

Bank of Mysorefor a period of 1 year and to be closed by theyear from the date of drawal and interest

as and when debited at 10.60% p.a.rate +0.10% .Securities : Floating charge

of the Company with 10% Margin.

Bank of Maharastra 53.000

STL for a period of 1 year to be repaid 12 monthlyinstallment interest to be serviced as and when debitedAt 10.25% p .a. i A. base rate (floating) Ser.uritieflFloating charge on Book debts of the10% MarqinLoan from REC (STL) 53.3357The repayment to be made in 12 monthly equal

together with interest at the rate 12.7!i% iing balance.

8ank 53.5007

53.500

53.500

53.500

24.420

24.409

24.414

24.415

24.428

24.411

5000000

3500000

1000000

1333200

1312500

301

2000000000

1499938176

1250000000

1000000000

49!i9 99 9ge

2500000000

1405355812

1960266718

50301 19192

101 1802797

996726687

Ii~_£SCOM

Sundry Creditors for Purchase of PowerInter ESCOM, Cost of Banked Energy, SLDC& PCKL Revenue ExpenditureCreditors/Liabilities for supplies / works

Payable for other services

---'r"""o-ta"7I--'- - - -

BANGALOREELECTRICITYSUPPLYCOMPANY LIMITED 302NOTES TO THE FINANCIAL STATEMENTS

825867

42.1 to5949551677...... ,. ...... ,.

...4 .... , "T.:...V

46.300+46.301+46.

441 306689928

46.103,410.470,46.

92942.231+4

39423211

8ANGALORE ELECTRICITY SUPPLY COMPANY LIMITED


consumption charges LT & HT 35191214023.181 &23.293

47.607,37.501,502,503,504

Excess credit under reconciliation with Bank

Draught relief fund.IMisclellalnel~us Deposits/Other liabilities

46.10442.282

46.972,6,97746.97846.966,

46.9

28withheld from employees against recoverables

44.21044.22044.31044.32044.330

307000000Provision for Income-Tax & Fringe Benefit Tax 46.800

303

1359961118

2044695075

4,95,00,000

e"IICOM

,i

BANGALOREI ELECTRICITY sa...Y COMPANY LIMITEDI

I

ImTES TO THE FINANCIAL STA fEMENTS!

BANGALOREj ELECTRICITY se LY COMPANY LIMITED

iIWTFS TO THE FINANCIALSTAfEMENTS

Note 11 - Tangible I Intangible Assets

1. Buildingsincludesshared assetsas per KPTCL's intimation2. Addition includesreleasedassetsafter reconditioning3. Deductionincludestransferof assetsfor reconditioning.4. Additions I deletionsof assetsanddepreciation thereon include:

a) Ilems pendingreconciliationrelatingto inter unit transfersandb) Priorperiod adjustments.

UJoen

6"-'BESCOM

BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED 306NOTES TO THE FINANCIAL STATEMENTS

Capital Work in Progress

Provision for works.

Dismantled assets for reuse (valued at WDV)

a) Value of scraped assets

16.2

15.128

14 series

15.500

16.1

b) Value of Faulty and Dismantled assets for reuse

Less: Depreciation

sue-Total

49638241

153544590

11887247301

51 1219217

369157145

20463300~ __ ~~~~~

65281 299

Note 14 • Non-Current Investment>.

A CAPITAL ADVANCES

28.9

28.930

20.251

29.1 to25.5,

27.10626.6

Adw.',ces to Suppliers

Advan·..·JS to Contractors163040424

2438058147

3 Loans a,,~ Advances - Others

27.847.308,309,310,311f-__---'3::.,:1::.4~~=l

a) Security Deposits with Railways and Othersb) Security Deposit from Suppliers & Contractors other

c) Deposit with Jurala Hydro Electric Project 140000

255721124372 33 o~ 958

228881: '~5741413985 6267406224

370564789

503089240

BAN GALORE ELECTRICITYSUPPL(COMPANY LIMITED 307NOTES TO THE FINANCIAL STATEMENTS

Less :Excess IShortageb) Mateterial imprest Account

Other Material Account

- --_ .... ,_._- ---_------------_. --_._----_._---_. __ .._.__ ._...._---_ ..•.._-- '-._.__ .-.----- .._- .._---,.- ...._ .. -

eB~OM

BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED


308

3884 58 60 897

I CI Amounts Receivable from GoK towards Free Powerto IP sets uoto 10HP

.Tariff subsidy Receivable from GOK towards BJ/KJinstallation

1. Unbilled Revenue - LT

2. Unbilled Revenue - HT

28.626

23.423.4

23.5

122731 57

28.627

3. Dues from Pennanently disconnected installations

4. Sundry Debtors - miscellaneous receipts from 237

23.8.607,4

for withdrawal of Revenue deman..

1.936,841

On accounts of ,,,nds rec :ivedOn accounts of funds received and adjusted toreceivable from KPTCL

On account of Materials, R"leased Assets, Personneland others (Cash transactions)

receivable from KPTCL

46.106

28.881

42.276,277,278,52.308

& Other F.SCOMS

28.829,834,839,929

2B.B

Receivables-suppliers/Contractors 28.828.1

Tax

340964582

12330561491

35 as 72

350417709

5521607

!aEseoM


Cheques, drafts on hand

(i) in current accounts

(a) Operative Accounts with scheduled banks

(b) Non-Operative Accounts with scheduled banks

in deposit accounts'

309NOTES TO THE FINANCIAL STATEMENTS

.130,24.140

4.210

24.40024.300 589698238~ ~

70882538339621 022

91 9580427~. ~

2 14700

Note 21 - Short Term Loans & Advances

•• Deposit is margin money serving as security against LC for Central Govemment Stations (Power Generotors)

28.85028.821

28.821

275494211351 84590

recoverable from ex-employees

for Doubtful of recovery from

Loans and Advances to Staff· Inierest free

28.4

28A02

28.899

27.2

:'.0579

61856

Note 22 -Other Current Assets

Receivables from Pension I Gratuity Trust

Cash Receivables from Associates • KPTCLESCOMSReceivable from GOK refund of meterequipmentsecurity deposit

24.524.6

28.82128.72,28.7428.9

28.9

28.710

Interest accured but not due on deposits (including Bank 28.2& 3Deposits)

Prepaid expensesIPr..Iiminarv expenses to the extent not written off

Unit Accounts- MaterialsCWIP, Fixed Assets, depreciation provision I

and released assetsInter Unit Accounts. - (1993)Personnel

IUA - Other transactions I adjustments

28.820

31

32

36373334

-82723693

24635202

-151464,940128

2349

1192

1587731'81258135r- l~_8~6~8~5~1 1 2574588

737933607

10212735

87321 354

4526439

737933607

9043827

52792397

5319307967

47250707

1025

e••• COl'lllt


BJ/KJ Up To 18 Units Metered installationsBJ/KJ Up To 18 Units Un Metered:__ '-".-'" ,_-III~ll;.l"C.n'VII<3

BJ/KJ Above 18 Units having more than oneoutlet

Lighting/combined lighting, heating & motivepower installations BBMP (Urban) - LT 2(a)1i..ighting/combined lighting, heating & motivepower installations (Urban Local Bodis otherthen LT 2(a)i - LT2 (a)iiLighting/combined lighting, heating & motivepower installations (Village Panchayats) - LT2(a}iii

Lighting/combined lighting, heating & motivepower installations (Free Lighting)

Lighting/combined lighting, heating & motivepower instaliations of Pvt.Professionalincluding aided educational institutions underUrban Local Bodies including CityCorporations LT 2 (B)i

Lighting/combined lighting, heating & motivepower installations of Pvt.Professionalincluding aided educational institutions underVPs -L T2(b)ii

Commercial Lighling, heating & motiveinstallations of ULBs including City

1 LT l(a) I

3 LT 1 II

4 LT 2A I

--------_--- L ---I'

Commercial Lighting, heating & motive12 LT 311 installations VPs· LT3 (ii) 61.132 1.21.04.23.229

I Lighting, heating & motive power I13 LT3 FL • Office Lighting 61.133 1,66,30,090

sale of power- commercial-Areas coming under Village

14 LT3(iii) 61.135

and inclusive of 10Hp·

15 T4A .61.141 13,58,79,09,389

61.142 3,34,655

61.143 69,368

61. ~46 :Z~.18061.144 6,00,00,346

IP setsPvt. Hortl, Nurseries, Coffee & TeaPlantations irrespective of sanctioned load-

20 LT 4C LT4( c) 61.145 10,66,03,792

Revenue from sale of power- IP sets· hor.21 Nur. Coffee & Tea above 10Hp· LT 4 C(ii} 61.147 26,76,597

Heating & motive power (including lighting) of22 LT 5A BBMP area upto & below 5HP • LT5(a)i 61.151 56,51,19;295

Heating & motive power (including lighting) ofMetropolitan area for above 5HP

40HP (inclulding demand based23 T 5(a)ii" 61.152 1,73,58,30,620

& motive power (including lighting) ofarea for 40HP & above but below

(inclulding demand based lariff) • LT


61.103 23,16,50,788

61.111 24,73,59,34,302

61.112 2,06,67,20,610

61.113 11,02,964

61,1~4 6.43.75.703

61.115 25,32,64,497

61.116 2,97,90,779

31,05,38,974

30,13,33,816

21,54,05,55,828

1,78,50,15,794

6.45,28.300

21,50,10,172

3,28,12,938

84.:\0.65.440

2,37,60,565

7,81,72,45,948

8,56,340

1,26,72,199

1,09,81,150

54,79,69,630

1.56,23,11,447

310

7e,S7C

2,85,326

311BANGALOREELECTRICITYSUPPLY COMPANY LIMITED

NOTES TO THE FtNANCtAL STATEMENTS

Heating & motive power (including lighting)-BBMP area for 67HP & above (inclulding

25 demand based lariff) - LT 5(a)iv 61.154 53,64,79,333 48,96,92,523Heating & motive power (including lighting) ofother than BBMP area upto and below 5HP -

LT 5B LT 5(b)i 61.155 37,19,32,802 31,68,07,760Heating & motive power (including lighting) ofother than BBMP area for above SHP &below 40HP (including demand based tariff )-

27 LT 5(b)ii 61.156 92,67,85,396 93,22,07,738Heating & motive power (including lighting) ofother than BBMP area for above 40HP &below 67HP (including demand based tariff )-

28 LT 5(b)iii 61.157 94,72,05,340 87,46,47,008

Heating & motive power (Including lighting)other than BBMP area for 67HP and above

291 (inclu,ii~g demand based tariff)- LT 5(b)iv 61.158 10,80,20,134 15,06,82,171

61.171 3,59,35,52,605 3,17,72,03,418installations of VPs I TP's and

01.172 2.5.....7..,7£,3....5 2.7 i ,O9,O2,~~7

61.181

& Localbodies/KUWS & SB -Water supplyinstallations -HT 1 61.250

tndustires in BBMP area - HT 2(a)i 61.260

Industires in areas other than BBMP area -HT 2(a)ii 61.261

Revenue from sale of power - Govt, hospitals& Hospitals run by charitable institution,

HT 2C I Educational institution 61.263

Revenue from sale of power - Govt. hospitals---_ .._, -_ ..._._

!, ~T2 S!! :~~:;~ 7~S

HT.2BI 21868590304295203781

37 HT 2B II 1485830614

38 HT3AI 38258365

39 HT 3A II 135190

40 HT 3B 273111161.289 664776

Resldentlat apartments and colonies ofBBMP Area HT 4 (a) 61.290 757713834

Residential apartments and colonies UrbanLocat Bodies other than HT 4 (a) - HT 4 (b) 61.291 25069685

E 1.292 6078112

III

Delayed payment charges from consumers.6 Other Receipts from consumers7 Registration fee towards SRTPV connection (Solar8 Facilitation fee towards SRTPV connection (Solar

61.901 66152

61.902 1030971161.903

61.904 471466126

61.905

61.906 5251 88271

61.907

61.908

e.... COM

312BANGALOREELECTRICITYSUPPLY COMPANYLIMITED


Interest· OthersInterest Income:Other non operating income

Profit on sale of stores

RentIncentives received

62.330·79.573

62.901

62.907+62.361+62.911+62.922+92+923+62.361

+62.918

provision made in prior period which is no longer62.325

62.905

62.917

62.916

61.317

61.3

Revenue fromsale of power - HESCOM -Enerqy balancingatIF poitandabove33KV

Revenue fromsale af power- GESCOM -Energybalancingat2 IF pottandabove33KV

Revenue fromsale of power- CESC -Energybalancingat IF

G~.:~:Revenue from Inter Escom exchange of energy charges 11KV - LT

4 HESCOM 61.314Revenue from Inter Escom exchange of energy charges 11KV - L T

GESCOM 61.315

Revenue from Inter Escom exchange of energy charges 11KV - LT6 MESCOM

Revenue from Inler-ESCOM exchange of energy cahrges 11KV &·CESC

61.316

141 2910634 1288769722

14487914103 2702004

468279 26233229667 26692

o C4 78

98273891 90 28905

1 40 87 965

1733041

1314 38 ?4~

1289665313

63 20 ~5 3g~

313BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED


67

17527645

2785 059

11739700767 07 700

11370030 10 487

5972814310 5657770463

75.900

stan vveirare expensesCompensation for injuries. dealh and damages SiaffWorl<men compensationPayme' I under workmens compensation ActPayment to helpers/employees of Monsoon ~ang

75.700

79.530

75.629

75.630

6 Employees cost charged 10capital ~"rI<s (Credit Account)

314BANGALOREELECTRICITYSUPPLY COMPANY LIMITED


BANGALORE .ELECTRICITY SUPPLY COMPANY LIMITED


315

316BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED


[Depreciation on other Civil Wor1<s

[Depredation on Plan I and Machinery 77.150+151

[Depreciation on lines, cable, networketc., 77.160+161

[Deprectauon on Vehic'es

[Depreciatior on furniture, fixtures

[Deprecrauor on Office eqc:;pments

6 77.170+171

77.180

77.190+191

1.E: ...ess provision for Depreciation in prior period2. Excess/short provision for Interest & Finance charges

83.500

83.600

83.700

3.0ther excess provision in prior period

B Oebits reloiih'9 to eartler years :

1. Employee costs relating' to previous year

2. Oepr9r::iationunder providedin previous period3.lnterest and other finance charges relating to previous

iii~

317

BI5COM



Note 30: GENERALNOTES

30.1 Share Capital

30.1.1 Government of Karnataka has disbursed Rs.340.96croreduring the period

from 2009-10 to 2011-12 as detailed below which was held as Share

Deposit till the time it was converted to Share capital in FY2011-12:.

Year Amount (in crore) Reference

2004-05 0.01 GO DE48 PSR 2003/424

dated TS/06/2004

2009-10 32.00 GO EN95 PSR 2008 Dated

01/09/2009

2009-10 118.00 GO EN67 PSR 2009 Dated

01/03/2010

- --ZQ09-1Q-.-- .' . ......._ .......-_ .......Go,.Q{)·_·· .__.._.._.. _- GO-EN-6·7·P-SR-2·009-D-ated-··

31jU3/2010

2010-11 25.00 GOEN 13 PSR2010 Dated

I 22/12/2010

2010-11 63.45 GOEN 13 PSR2010 Dated

30/03/2011

2011-12 22.50 GOEN 20 PSR2011 Dated

I 21/09/2011 (P3 Part I)

2011-12 20.00 GOEN 20 PSR2011 Dated

21/09/2011(P3 Part II)

31830.1.2 Government of Karnataka has disbursed certain amounts towards equity

investment which is kept under Share Deposit which will be converted to ShareCapital on completion of procedure. The details of Share Deposit received as onFY14-15is as under:

-- ----_ ...._--- - _,_. _, _. - .-- .._---._---- -_._--, ..--- -._-- ...._ ....-_-_-----_--- -----.-,._,.

2012-13 37.50 GO EN 30 PSR 2012 Dated

Illnder 20.0016/07/2012

share 40.00 GO EN 22 PSR 2012 Dated

deposit 29/01/2013

Account) 21.58GO EN 17 PSR 2012 Dated

2013-1430/03/2013

2013-14 14.00 GO EN 10 PSR 2013 Dated

ii6/U9/Z013

GO EN PSR 2013 Dated

23/09/2013

2014-15 10.00 GO EN 56 PSR 2014 Dated

27.12.2014

2014-15 8.00 GO EN 56 PSR 2014 Dated-- _._------------------- --_. --- .._ .._ --- ._.._-_ .._--_ .._-_._-_. __ .._----- rOI.03~Oi5--------- ---.- _. -----. __ ._---_ .._-

IIDIal

Ii:>1.08

I

30.2 Loans

30.2.1 Certain secured/unsecured loans received in the earlier years have been

accounted based on the intimations received from the KPTCL.The loans

are not availed in the name of the company, instead a certain portion of

the loans availed by KPTCL from various institutions have been

transferred to BESCOMand arc reflected in the books of the company.

The interests on such loans are also accounted based on intimation by

KPTCLexcept certain loans directly borrowed by the Company.

30.3 Fixed Assets & Depreciation

30.3.1 The fixed assets are accounted vide Government of Karnataka

Notification mentioned in the company overview at cost of assets in

Gross Block and accumulated depreciation on such assets till the date of

transfer and the depreciation has been provided accordingly every year.

31930.3.2 The company does not consider the period of fixed assets utilized by

KPTCL for computing the remaining useful life of the fixed assets

transferred from KPTCL.

30.3.3 The company has not reassessed the revised useful life of the assets

based on the notification of the CERC (Notification no. L-

7/145/160/2008-CERC dt. 19.01.2009) stipulating the revised

depreciation rates. The company charges depreciation based on the

rates notified by the CERCprospectively.

'.)f' "") A rrL. ..... ~-~_-_ .....~.....~__ ......:11 .:..., !......."-t... ............... ,,-.. ..............._ ....c _1-.L. .... z , .... .:~_ "']"''''-_.':1_ .....c ......1_ ....JV.~',"1" I11t:: \"'UIU11ClllY ;)LUI I;) 111 LlIt: 111U\..t::;);) VI VULClllll115 Ut::LClIl;) VI lllt:

_

__ identification, location, situation, description and the extent of transfer

of titles in its favour in respect of movable, immovable and leased assets.

30.3.5 The assets have been recorded as assigned specifically by KPTCL.In case

----_.._of.certatn__bJJiJdings_titLe_d_e_e_ds_Lelattng.J:Q_la_nd _(IncludingLease _HoJd1_. _

related costs that the company may incur with regard to such transfer of

titles are not ascertainable and not provided for by the company

30.3.f Income/expenditure arising out of maintenance cost and payment of

rent in respect of assets (land and buildings)of common use is as per

30.3.7 During the year an amountof R::,.11050 38 514 representing the amount

of depreciation computed on the cost of assets funded through

contribution/ from Consumers is adjusted

51.Particulars 2014-15 particulars 2013-14

No.

..Opening Balance 01-

Provision against permanently 06-2002. (As per1 161.91

disconnected ills~i:illCttiullS Government: cUI- Karnataka order)

(a) On account of 4% (a) On account of 4%

provisioning as per provisioning as per2 106.33 97.58

Accounting Policy - LT Accounting Policy - LT

320

30.45undry Debtors:

30.4.1 The break-up of the provision for bad and doubtful debts as against the

total receivables as on 31-03-2015 is as under:

Rs. in Crore

.category.and.others --------t-categary_and_others______ __ _ _

(1) ?I-uvi:;iull U1I I

account of identified(b) Provision on account of

identified HT -consumers.-3 ------- HT -consumers.-Long ----"_----

disconnected

installations II

On account of arrearsI

973.56 of Bj/KJ and iP set...... - .......... ,... ,':J / o.o o I

installations.I

1241.80 1233.05 I

Long disconnected

installations

On account of arrears of IP set4

installations.

Total

Company has continued the same quantum for long disconnected installations

considered doubtful of realization and Provision for Bad and doubtful debts is provided

accordingly and as per prudent policy.

30.5 Inventories, Stores and Spares

30.5.1 In case of purchase of inventories, if standard rates are adopted, the

differences between the purchase rates and standard rates of materials

321are debited or credited to material cost variance account, which is

charged/ credited to Statement of Profit and Loss at the end of the year.

30.S.2 The Company has accounted separately excesses/shortages found on

physical verification of inventories which is pending final investigation

and adjustments are yet to be carried out by the company.

30.6 Pension, Gratuity and Leave Encashment

30.6.1 Allthe employees of the Company art; on deputation from KPTCL.

---,_- ----------. - .._---_ .._-----------------.-----------------_-------_---------- .._----------------------------------------_---------------------------

30.6.1 As per 'KPTCLand ESCOM'sPension & Gratuity Trusts' Order No.. KPTCL

& ESCOMsP&G TRUSTS/KC0123/P7/2011-12/CYS07 dated 27THMay-

13, provision towards Pension has been calculated at 30.00%of Basic +

DP and D.A.and provision towards gratuity has been calculated at 6.01%

of Basic + DP for FY 2012-13based on actuarial valuation made as at

31.03.2009. However, no actuarial valuation has been made for the year

ended 31.03.2013

30.6.2 In case of leave encashment, the company has estimated the earned leave

encashment of eligible employees and the same has been provided in the

books of accounts.

30.6.3 No actuarial valuation has been made in respect of any employee benefits

for the financial year 2014-15

30.6.4 The amounts provided in respect of Pension, Gratuity and leave

encashment have not been fully funded during the year.

3 0.7 Contingent Liability/Asset

30.7.1 The company is unable to ascertain the estimated amount of contracts

remaining to be executed on capital works due to the large volume of

transactions of the company.

32230.7.2 Income tax demand disputed in appeals is RS.91.15Crs is shown as

under: (Previous year; Rs.91.15Crs)

51 Pending Before Period Amount (InNo Crs)1 CIT,Appeals(I), Bangalore AY 12.56

2U04-0S

2 Tribunal order issued in favor of IT AY 61.07

Department. The company has filed a Writ 2005-06

Petition in the Honble High Court of

Karnataka against the Tribunal Order

3 CIT, Appeals(l), Bangalore for AY ----

Dis-allowance of expenses of Rs. 7.52 Crs. 2009-10

4 CIT,Appeals(I), Bangalore AY 17.52

2010-11

Total 91.15

._--_._._-_ ..-. - -_.- .._- _.__ .._-_ ---_._- ._--_._- _ .._--------------------------------_ .._-----------------_._-- ----._-_._--_._---------._----

::JV./.::J Tile Ldlill! dLe~ VI puvvei .fJ1.nd!d~e~ 1((Jill DTPS 2 dnU RTPS - 8':..': Ulli LVI

KPCL have been provided based on the Power Purchase Agreement

(PPA) which is pending for approval by the KERC.Additional liability, if

any, shall be accounted on final approval from the KERC.

30.7.4 The Tariff of UPCLhas been determined by CERC& issued final Tariff orderon 20.02.2014. However this order has been again disputed beforeAppellate Tribunal for Electricity (ATE). ATE had issued interim order toadmit the bills as per CERC final order from Feb -2013 to Mar .2014 &onwards. The orders for payment from Nov 2010 to June 2013 as per CERCfinal order is still pending. Hence, Rs.197. 76 crore has been accounted forthe period from Feb13 to Mar 14 duly withdrawing the earlier provisions ofRs. 344 crore.

30.7.6 Interest claimed by KPCL on belated payments up to FY 2014-15 is under

dispute and hence not provided for Rs. 700.85 crore (Previous year Rs.

545.12 Crore)

30.7.7 Letter of Credits given in favor of power generators remains same at

Rs.423.31 Crores (Previous year 423.31 Crore]

30.7.8 Interest Claims in respect of UPCL is not provided as final orders from

CERCis disputed before ATE.

323

30.7.9 BESCOMis allowing Moisture corrections upto the permissible ceiling limit

as agreed in PPA & FSA (12% or 15% as per coal coalaries), over and above

the permissible limit is neither admitted nor accounted in the books which

is also having the concurrence of KPC.

3071 () Vieil;:mre r;=lSi"<:;:Jri" r~ndiT1e in respect nf Cll<:tOTDPfSin.<:tClllations in va rio ux

forums and the amount is not ascertainable at this stage.

30.7.11 The Details of zone-wise appeal cases periding as at 31-3-2015 are as

follows:

51.Particulars

No.BMAZ BRAZ CZ Total

CUlu{.t.N 1YEAR

1 No. of Appeal casespending as on 31-03-2015

348 83 31 462

2Amount involved (Rs. in

2326.76 95.88 39.33 2461.97Lakhs)

PREVIOUS YEAR

---~----I--~~~d~:-as ~~~~~~3~2~1~a- ______954_____109 30 493----- ------ 1---- ------------_---_----- ._-------------

4Amount involved (Rs. in

2383.11 91.69 36.41 2511.21Lakhs)

30.7.12 Transmission Charges payable to KPTCL for FY 2006-07 has been

recognized at 19.42 paise per KWH.KPTCL had initially claimed

transmission charges at 26.23 paise per KWH and the company had also

paid the transmission charges at 26.23paise. However, KERC has

challenged the rights of KPTCL to charge any sum exceeding 19.42 paise

towards transmission charges and the matter is pending before the

Hon'ble Supreme Court in an appeal filed by KERCagainst the order of ATE

New Delhi. Currently, the company has accounted such excess sum paid to

KPTCL of Rs125 crore as receivables from KPTCL under other current

assets pending the decision of the Hon'ble Supreme Court in this regard.

30.8 Inter UnitAccounts (IUA)

Inter unit accounts are subject to reconciliation/adjustments to the extent

of Rs. 114.96 crs (Credit), ( Previous year 35.19 crore (Credit). The exact

324

impact distinctively on the Statement of Profit and Loss and Balance Sheet

is not readily ascertainable.

30.9 Free Lighting

Difference between power purchase cost and subsidized rate on free

lighting provided to the employees of KPTCL, including employees on

deputation to BESCOM in the service area of the Company is treated as

expenditure in the books of the Company.

30.10 Electricity consumption of Company'soffices

Self-consumption in respect of company offices are accounted as Revenue

at retail tariff rates and the same is treated as expense, except ,to the

extent of unbilled revenue.

30.11 Rebate for having collected electricity tax from consumers amounting to

_________________________________~ Rs_,-2_,_2.6_CLQLe_Cp_r_e_v_iQ_u_s_y-e_a_LRs_,_2_._(i6__cro_re)_at_Q_,_5_o/Q~wjtb__effect.frcm ----- ---

accounted in Other Non-operating Income, which is to be received from

Government of Karnataka.

30.12 ManagerialRemuneration

Managerial remuneration is included in employee costs and other

expenses and the details are as follows:

II

Forthe year 2014-15 For the year 2013-14

Expenses ManagingDirector

ManagingDirector DirectorDirector

Director (Tech) (Finance) Director (Tech) (Finance)(Rs) (Rs)

Salaries and 468316151426-3 910244

allowances 1113372 1659783 1013112 [Zmonths]

Ex-Gratia 1214 3500 3500 1214 3500 3500

Others (HouseOrderly 261663 266730 265044 181437 245748 120141Allowances 1Medical & Other 412538 237243 61577 122354 32376 248324Allowances

TOTAL 1788787 2167256 1343233 773321 1795887 1282209

325

30.13 Expenditure in foreign currency:

Current year Previous yearFore ign exchange expense s I---'--'-N':'___:_I~L~:":'::_-+-N--"-I--"-L~::"'::_:__:_=_'~:::'=_-I

30.14 Additional Information

Quantitative details of power purchase, distribution loss and sales (as compiled /

certified by the Management):

Details of sale of energy and Distribution Loss for the year 2014-15 (April-14 to

March -15) are as follows:

Distribution Loss Energy in MU

51 No. Particulars Current year Previous year

Total Energy at Interface1 Point ((From 1-04-2014 28261 26786

to 31-03-2015)

2 Total metered sales 18677 17827

3 Total un-metered sales * 5759 5238

----4---- -'FotCl:J.--5-ales-tZ+-3-)----------------2-4-436- --------------2-3-065--,... ~'.,' '1._ " __ 1. _ ,. .... A"'\ 0""\1')""- ..... ,~"'"\A

J Ul:'UlUulllJlllUSS lj_-'-t) .JOL.J ::J1L.j_

6Percentage of 13.53 13.89Distribution Loss (5/1)

- ---

* In respect of Un-metered category of installations, Energy consumed has been

assessed as follows:

• BJ / K] installations: KERC has approved to assess the units consumed by

BJjKJ category of consumers at 18 units /monthj installation.

• IP sets consumption assessment is based on sample readings recorded at

Distribution Transformer Centers taking secondary line loss at 10%.

326

Transmission Loss:nergy In

SlParticulars Current Year Previous year

No.

Total Energy purchasedA at Generation Point r'\E"'\Ar'\'" ")_""""'1'""'11.

(From 1-04-2014 to 31-L.'7'"tL.') L./'J£.O

03-2015)

Total Energy at Interface2 Point ((From 1-04-2014 28261 26786

to 31-03-2015)

3 Transmission Loss (1-2) 1162 1142

I Percentave of - -- - -

E . MU

4 I Transmis""sionLoss (2/1) 3.Y~ I 4.UY I

30.15 Related Party Transactions

There are no transactions during the year with related parties (other than the

transactions between state-controlled enterprises which is under the control of

--- ------ --.---- -------the--eentrcrl-GuvernnTerrt-andjortlreanyState-C overrrrrrenttsrj -----------------------------

30.16 Small and Medium Enterprises

Amount due to Small and Medium Enterprises as required under the Micro, Small

and Medium Enterprises Development Act, 2006 are not ascertained due to lack

of information. The company has not received any confirmation from registered

suppliers as of date, in respect of which disclosures are required to be made

lln,.la,. I'ha ",..,i,.l .1r-t- ThUS the cornnanv has not nrovided for any interest""'-44\...&.'-.4 ......... '- o..J""""'~ '" ........ L. ",1 J \..J. '- '-'-'.1.1.L}'" J. J .lJ...... lL !-",.l V Y '-4'-"\,A,......... ... ..... --- _ .....-

pertaining to sums that may be payable to SMEs,if any.

30.17 Segment Reporting

The company neither has more than one business segment nor more than one

geographical segment, hence segment reporting as required under AS--17 is not

applicable for the company.

327

30.18 Deferred Tax

The company has not recognized any deferred tax asset/liability as its income is

exempt from tax under sec BOlA of the Income Tax Act, 1961. The company

neither provides timing differences that would reverse after the tax holiday

period. However, the company shall provide for deferred tax subsequent to its tax

holiday period. The quantum of such non-provisioning for deferred tax is not

readily ascertainable.

30.19 The revenue from retail consumers are recognized based on KERC Tariff order

2014 dated 12-05-2014 .

.. ._.30.2JL True-u ILTa.rifLS..u.bsi_dy.__ ._.__ .__._..... . .__

A sum of Rs.524.53Cr accounted as income on account of true-up subsidy on

accrual basis yet to be released from the Government of Karnataka towards

additional true up tariff subsidy relating to the FY 13 as per the tariff order of the

KERCdated 12 05 14. (Previous year Rs.524.53 Crs)

30.21 The company has not obtained confirmation of balances as on 31.03.2015 from

other ESCOMS, KPTCL, KPCL, PCKL, sundry debtors, sundry creditors, deposits

from suppliers/contractors/government authorities, etc, advances to

contractors/suppliers, deposits and advances from consumers, loans and

advances to employees (past and current employees), and other receivables from

various parties and are subject to reconciliation/adjustments, if any.

328

30.22 Prior period income

Certain items grouped under prior period items in the previous year which did

not involve an act of error or omission are regrouped under other appropriate

heads.

30.23 Previous year figures have been regrouped /rearranged wherever necessary to

meet the requirement of schedule III of the Companies Act, 2013.

30.24 Earnings per Share

Particulars Current Year Previous Year

Net Profit /Loss after tax ( In Rupees) 1134436294 761031 342

Weighted average no. of equity shares 546915 100 5469 15 100

~asfcTa-rnTngsper-snare-TIri~upeesl-----f--._- ---Z:OT ~-. .~ - -- ••+.

LJ9

Diluted Earnings per Share (In Rupees)

30.25 Pursuant to the observations made by Comptroller & Auditor General of India under

relevant section of the Companies Act, 2013, the accounts approved by the Board of

Directors on 25/07/2015 have been revised. The Accounts are revised to incorporate

the observations made by the Comptroller & Auditor General of India on the financial

statements and books of account of the company. The impact of the revision in the

accounts of the company is stated below.

329

Net impact of revision on the accounts

(Rs. In Lakhs)

SLNo. Particulars Debit Credit

P& LStatement1 Increase in expenditure / Decreasein Income 2051.01

2 Decreasein expenditure/ Increase in Income 38.12

3 Total (1 to 2) 2051.01 38.12

BalanceSheet

4 Net Decrease in profit (1-2) 2012.89

5 Increase in liability 3454.35

6 Decreasein liability 257.84

7 Increase in assets 9698.55

8 Decreasein assets 8514.93

9 Total (4 to 8) 11969.28 11969.28

As per our report even date for & on behalf of the board/company

uprasad.~~· L pa~~pandeyo Director (Finance) Managing Director

Place: Bangalore

Date: 18· CA ,:<o1r

------------------- -- - -

',_,~il'l.

'I,

. I

13th Annual Accounts2014-15

- .__ ..._ -- . __ .. --_ ..._-------,._---- ._---------- _---------

Consolidated Financial Statement

Bangalore Electricity SupplyCompany Limited

331

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIAUNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THECOMPNIES ACT, 2013 ON THE CONSOLIDATED FINANCIALSTATElVIENTS OF BANGALORE ELECTRICITY SUPPLY COlVIPANY LIMITED,

BANGALORE FOR THE YEAR ENDED 31 MARCH 2015.

The preparation of consolidated financial statements of Bangalore Electricity

Supply Company Limited, Bangalore for the year ended 31 March 2015 in accordance

with the fmancial reporting framework prescribed under the Companies Act, 2013 is the

responsibility of the management of the company. The statutory auditor appointed by

the Comptroller and Auditor General of India under section 139(5) read with section

129(4) of the Act is responsible for expressing opinion on the financial statements under

section 143 read with section 129(4) of the Act based on independent audit in

accordance with the standards on auditing prescribed under section 143(10) of the Act.

This is stated to have been done by them vide their Audit Report dated 18.09.2015.

I, on the behalf of the Comptroller and Auditor General of India, have conducted

a supplementary audit under section 143(6)(a) read with section 129(4) of the Act of the-.._-- ----_- _--_._-----------_ ..

consolidated fmancial statements of Bangalore Electricity Supply Company Limited~~-------

Bangalore for the year ended 31 March 2015. We did not conduct supplementary audit

of the fmancial statements of Power Company of Karnataka Limited, Bangalore for

the year ended on that date. This supplementary audit has been carried out

independently without access to the working papers of the statutory auditors and is

limited primarily to inquiries of the statutory auditors and company personnel and a

selective examination of some of the accounting records.

In view of the revisions made in the financial statements by the management, as

a result of my audit observations highlighted during supplementary audit as indicated in

the Note No. - of consolidated financial statements, I have no further comments to offer

upon or supplement to the statutory auditors' report, under section 143(6)(b) read with

section 129(4) of the Act.

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L-ornptrouer ,~.~-.-xuditor ,--:'",..-,,,-,,: "'e' :_..;'", "Ii\,'~;"U~U~'"'v, U'U,"

~--1

B::\T'\g31nro,

Date: .09.2015

(BI.JJT KUMAR MUKHERJEE)ACCOUNTAi'i"T GE1';-ER~L

(ECONOMIC &~VENUE SECTOR ALinIT)KARNATAK~,BANGALORE

-- -- ----------------------------------

Q/.!J( cM'tanjan 5- Co.Chartered Accountants

Office 2226,.FA92222~2291 0027.Telefax :

---------~-------------.. --~.~~.H.O. : Kurubara Sangha Building, 202 & 204, Kanakadasa Circle, Kalidasa Marga,

Gandhinagar, BENGALURU - 560009. E-mail: [email protected]

Ref. No.:Date : .

B-5042.1PI1976112015-16 18/09/2015

INDEPENDENT AUDITOR'S REPORT ON THE CONSOLIDATED FINANACIALSTATEMENTS

TO THE MEMBERS OF BANGALORE ELECTRICITY SUPPLY COMPANYLIMITED

Pursuant to the observations made by Comptroller and Auditor General of India under section143(7) of the companies Act, the accounts approved by the Board of Directors on 15.09.2014have been revised, this report supersedes our earlier report dated 03.08.2015. The report isrevised to incorporate the observations made by the Comptroller and Auditor General of India onthe financial statements and books of accounts of the company. The impact of the revision in theaccounts of the company is stated in note number 30.25

Report on the Financial Statements;

We have audited the accompanying financial statements of BANGALDRE ELECTRICITYSUPPLY COMPANY LIMITED ("hereinafter referred to as "the Holding Company") and itsassociate PCKL comprising of the Consolidated Balance Sheet as at 31 March 2015. theConsolidated Statement of Profit and Loss, the Consol idated Cash Flow Statement for the yearthen ended, and a summary of significant accounting policies and other explanatoryinformation(hereinafter referred to as "the consolidated financial statements").

Management's Responsibility for the Consolidated Financial Statements;

The Holding Company's Board of Directors and management is responsible for the preparationof these consolidated financial statements in term of the requirements of the companies Act 2013(hereinafter referred as the Act) that give a true and fair view of the Consolidated financialposition, Consol ida ted f nancial performance and Consol idated cash tlows incl ud ing itsassociates in accordance with the accounting principles generally accepted in Ind ia, including theAccounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies(Accounts) Rules, 2014. The respective board of directors of the companies included group areresponsible for maintenance of adequate accounting records in accordance with the provision orthe Act for safeguarding of the assets of the Company and for preventing and detecting thefrauds and other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design, implementation

<1!.!J(. e:Mtanjan. & t!c,.Chartered Accountants

333

and maintenance of adequate internal financial control, that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparationand presentation of the financial statements that give a true and fai r view and are free frommaterial misstatement, whether due to fraud or error, which have been used for the purpose 0 fpreparation consolidated financial statements by the directors of the Holding company asaforesaid.

Auditor's Responsibility;

Our responsibility is to express an opinion on these consolidated financial statements based onour audit. While conducting the audit, we have taken into account the provisions of the Act, theaccounting and auditing standards and matters which are required to be included in the auditreport under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under section143(10) of the Act. Those Standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the consolidated financialstatements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and thedisclosures in the consolidated financial statements. The procedures selected depend on theauditor's judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. In making those riskassessments, the auditor considers internal financial control relevant to the holding Company'spreparation of the consolidated financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances but not for the purpose of theexpressing an opinion whether the holding company has an adequate internal financial controlsystem over financial reporting in place and the operating effectiveness of such controls. Anaudit also includes evaluating the appropriateness of accounting pol icies used and thereasonableness of the accounting estimates made by holding Company's board of Directors, aswell as evaluating the overall presentation of the consolidatedfinancial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained by the otherauditors in terms of their reports referred to in sub-paragraph (a) of the other matters paragraphbelow, is sufficient and appropriate to provide a basis for our audit opinion on the consolidatedfinancial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to LIS.

the aforesaid consolidated financial statements, give the information requireci by the Act in themanner so required and give a true and fair view in conformity with the accoLll1til1g_-P.fin~iples

~(r(~~~-------------- -- -

QI.9( dVltanjaJZ &6.Chartered Accountants

334

generally accepted in India of the consolidated state of affairs of the group, its associates as 31.March 2015, and their consolidated profit/lossand their consolidated cash flows for the yearended on that date.

Other matters

a. We did not audit the financial statements of PCKL, whose financial statement 1 financialinformation reflect total assets of Rs.199,88,50,32 1/- as at 3 pt March 20 IS, total revenue ofRs.2,47,27,4 19 and net cash flow amounting to Rs.35,07,28,283/- forthe year ended on thatdate, as considered in the consolidated financial statements. The consolidate financialstatements also include the group's share of net profit of Rs. 52,40,518/- for the year ended31st March 2015, as considered in the consolidated financial statements, in respect of PCKLassociates, whose financial statement I financial information have not been audited by us.These financial statements 1 financial information have been audited by the other auditorswhose reports have furnished to us by the management and our opinion on consolidatedfinancial statement in so for as it relates to the amounts and discourses included in respect ofthese associates, and our report in term of sub section (3) and (II) of section 143 of the act,in so for as it relates to the aforesaid associate, is based solely on the reports of the otherauditors.

Our opinion on the Consolidated financial statements, and our report on the legal andregulatory requirements below, is not modified in respect of the above matters with respectto our reliance on the work done and report of other auditors and financial statements /financial information certified by the management.

Report on other Legal and Regulatory Requirements

I. As required by the Companies (Auditor's Report) Order, 2015 ("the Order"), issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act,based on the comments in the auditors' reports of the Holding company and associatecompany incorporated in India, we give in the Annexure a statement on the mattersspecified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. The associate company's auditor observed that, the associate company has not conducted"Audit Committee" meeting during the year, which violates the provisions of Section177(4) of companies Act 2013.

3. The associate company's auditor observed that, the associate company has not appointed"Independent Director" during the year, which violates the provisions of Section149(4) of companies Act 2013.

Q!.9( tCiVtltanjan & C!o.Chartered Accountants

335

4. The associate company's auditor observed that, the associate company has not issuedseven days prior notice for "Board Meeting" which violates the provisions of Section173(3) of companies Act 2013.

5. The associate company's auditor observed that, the associate company has not appointed"Company Secretary" during the year, which violates the provisions of Section 203 ofcompanies Act 2013.

6. The associate company's auditor observed that, the associate company has notdeducted"TDS on interest" remitted to ESCOM's as per the provisions of Section194(A) ofIncome Tax Act, 1961.

7. As required by section 143(3) of the Act, we report to the extent applicable that:

a) We have sought and obtained all the information and explanations which to the best ofour knowledge and belief were necessary for the purposes of our audit of the aforesaidconsolidated financial statements

b) In our opinion proper books of account as required by law relating to preparationaforesaid consolidated financial statements have been kept so far as it appears from ourexamination of those books and the reports of the other auditors.

c) The reports on the accounts of the associate company incorporated in India, audited undersection 143(8) of the Act by associate company auditors have been sent to L1s/the otherauditors, as applicable and have been properly dealt with in preparing this report.

d) The Consolidated Balance Sheet, the consolidated Statement of Profit and Loss, andConsolidated Cash Flow Statement dealt with by this Report are in agreement with therelevant books of accountmaintained for the purpose of preparation of the consolidatedfinancial statements.

e) In our opinion, the aforesaid consolidated financial statements do comply with theAccounting Standards. Specified under Section 133 of the Act, read with Rule 7 of theCompanies (Accounts) Rules, 2014.

f) On the basis of written representations received from the directors of the HoldingCompany as on 31 March, 2015, taken on record by the Board of Directors of theHolding Company and the reports of the other statutory auditors of its associate companyincorporated in [ndia. None of the other directors of its associate company incorporatedin India is disqualified as on 31 March, 2015, from being appointed as a director in termsof Section 164(2) of the Act.

<V!l(. e:NiJf4l2IDJl & eo.Chartered Accountants

336

g) With respect to the other matters to be included in the auditor's report ill accordance withrule 11 of Companies (Audit and Auditor's) Rules, 2014, in our opinion and to the best ofour information and according to the explanations given to us.

i) There were no pending litigations which would impact the consolidated financialposition of the group, its associates.

ii) The group and its associatesdid not have any material foreseeable losses 011 longterm contracts including derivative contracts.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the holding Company and its associate companyIncorporated in India.

Place: BENGALURUDated: 18/09/2015

FOR V K NIRANJAN & COChartered Accountants

Firm's Reg. No. 002468S

IvCA NIRANJAN V K

PARTNERM No. 021432

rtI.!J(. dVltanjan. & Co.Chartered Accountants

337

ANNEXURE TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of BANGALOREELECTRICITY SUPPLY COMPANY LIMITED ("the Company") and its associate

company for the year ended 31st March 2015,we report that;

i) In respect of Fixed Assets of Holding company and its associate company:

a. The holding company has maintained records, but particulars like quantity and situationof all the fixed assets are not maintained. The Company is yet to obtain titledeeds/relevant documents of certain lands/buildings reflected in the note lOin relation

to fixed assets.

In case of associate company it has maintained proper records showing full

particulars including quantitative details and situation of fixed assets.

b. As explained to us, the company has physically verified items falling under category ofOffice Equipments, T&P materials (Almairahs, Chairs, and Tablesetc.), Computer andPeripherals, Vehicles, Buildings and Civil works at regular intervals. Based on theinformation and explanations given to us by the company, they have not noticed anymaterial discrepancies on such verification as compared with the limited records

available.

However, the company has not conducted a physical verification in respect of plantScmachinery and lines & cables during the year. Hence we are unable to comment onthe adequacy or otherwise of the regularity of physical verification of such assets.

In case of associate company all the fixed assets have been physically verified bythe management in a phased periodical manner which is reasonable having regard

to the size of the company and the nature of its assets.

ii) In respect of inventories of Holding company and its associate company:

a. In respect of Holding company, as explained to us, inventories lying in the storesof the company have been physically verified by the management during the year.In our opinion, frequency of verification is reasonable, whereas in case of AssociateCompany it did not hold inventory during any day of the financial year. ~"

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Q!.9( dV£~0J1. 5- Co.Chartered Accountants

338

b. In our opinion and according to the information and explanations given to us, theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c. The holding company is maintaining proper records of inventory situated atcompany's premises. As explained to us, there were no material discrepanciesnoticed on physical verification of inventories as compared to the bookrecords.HoweverJ the minor discrepancies of inventories are accountedfor in thebooks of account (Excess stock of Rs2.46crore and a shortfall of Rs 1.84 crore -net being excess Rs. 0.62 crore).

iii) The Holding company and its associate company have not granted any loans,secured or unsecured to company, firms or other parties covered under section189 of the Company Act, 2013 by the respective company.

iv) In respect of Holding company, in our opinion the existing internal auditsystem is ineffective and not commensurate with the size of the company andthe nature of its business, due to lack of proper Internal Audit Reports,presentation, periodicity, inadequacy of coverage of inventory. There is nointernal control system relating to store maintenance, fixed assets accountingwith proper classification details. Whereas the opinion of other auditors andaccording to the information and explanation given to them, there is anadequate internal control system commensurate with the size of the associatecompany and the nature of its business with regard to purchase of fixed assetsand with regard to the sale of services. During the course of our and the otherauditors audit, no major weakness in such internal control system has beenobserved.

v) According to the information and explanations given to us and the otherauditors, the Holding Company and associate company incorporated in Indiahave not accepted any deposit during the year and accordingly the question ofcomplying with Sections 73 and 76 of the Company Act, 2013 does not arise.

vi) According to the information and explanations given to us and the otherauditors, in our opinion and the opinion of the other auditors, the HoldingCompany and associate company incorporated in India have, prima facie, madeand maintained the prescribed cost records pursuant to the Company (CostRecords and Audit) Rules, 2014, as amended and prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Company Act, 2013.Neither we nor the other auditors have, however, made a detailed examination

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Q).!J(. t::MtanJatL & flo.Chartered Accountants

339

of the cost records with a view to determine whether they are accurate or

complete.

vii) According to the information and explanations given to us, in respect ofstatutory dues of the Holding Company and associate company incorporated in

India:(a) The respective companies have been regular in depositing undisputedstatutory dues, including Provident Fund, Employees' State Insurance,Income-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty, ExciseDuty, Value Added Tax, Cess and other material statutory dues applicableto the respective company with the appropriate authorities.

(b) As at 31st March, 2015, the following are the particulars of dues onaccount oflncome-tax, Sales Tax, Wealth Tax, Service Tax, Customs Duty,Excise Duty, Value Added Tax and Cess matters that have not beendeposited on account of any disputes by the Holding company In respect of

statutory dues:

Name of the Nature of the Amount of tax Period to Forum of

Statute dues involved (in which the dispute

crore Rs) amount relates

Income tax Act, Income tax 12.56 AY 2004-05 CIT, Appeals

1961(I), Bangalore

Income tax Act, Income tax 61.07 AY 2005-06 High Court of

1961Karnataka

Karnataka Electricity tax 9.63 F Y 2008-09 Chief

ElectricityElectrical

(Taxation onInspector to

Consumption)Government

Act 1959(CEIG),

-Bangalore

Income tax Act, Income tax (7.52 clf loss) AY 2009-10 CIT, Appeals

1961(1), Bangalore

Income tax Act, Income Tax 17.52 AY2010-11 CIT,

1961Appeals(I),Bangalore

-- -- -- -----------------------

Q/.!J( dVltan;an & Cle.CharteredAccountants

340

viii) The Holding company has accumulated losses at the end of the financial yearand the Group and its associate company have not incurred cash losses on aconsolidated basis during the f1l1ancial year covered by our audit and in the

immediately preceding f1l1ancial year

ix) In our opinion and the opinion of the other auditors and according to theinformation and explanations given to us and to other auditors, the HoldingCompany and associate company incorporated in India have not defaulted inrepayment of dues to financial institutions, banks and debenture holders during

the year

x) In our opinion and the OplOlOn of the other auditors and according to theinformation and explanations given to us and the other auditors, the terms andconditions of the guarantees given by the Holding Company and associatecompany incorporated in India for loans taken by others outside of the Groupand its associate company from banks and financial institutions are not, prima

facie, prejudicial to the interests of the Group and its associate company.

xi) In our opinion and the opinion of the other auditors and according to theinformation and explanations given to us and the other auditors, the term loanshave been applied by the Holding Company and, associate company

incorporated in India during the year for the purposes for which they were

obtained.

xii) To the best of 0ur kno wi edge and according to th e informati on and ex pianati0

nsgiven to us and the other auditors, no fraud by the Holding Company and itsassociate company incorporated in India no significant fraud on the HoldingCompany and associate company incorporated in India has been noticed or

reported during the year.For V K Niranjan and Co.,

Chartered Accountants

Firrn~o. 002468S

C A Niranjan V KPartner

Membership No.021432BENGALURU18/09/2015

341

BEseOM



CONSOLIDATED SIGNIFICANT ACCOUNTING POLICIES

1. Company overview

Bangalore Electricity Supply Company Limited CBESCOM' or 'the company') is a

company registered under the Companies Act, 1956 incorporated on 30th April, 2002

.. and commenced its operations from !Y June, 2002. BESCOM is responsible for power

distribution in eight districts of Karnataka (namely Bangalore Urban, Bangalore Rural,

Ramanagara, Chickkaballapura, Kolar, Tumkur, Chitradurga and Davanagere).

The KERC vide letter dated 30th Sep 2008 has intimated that as per first provision of

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::l period of 25 years from 1_0th J11ne 2004.

The Government of Karnataka published vide their order No. DE 14 PSR 2002 dated 31-

05-2002, the 2nd Transfer Scheme called Karnataka Electricity Reform (transfer of

undertakings of KPTCL and its personnel to electricity distribution and retail supply

Companies Rules, 2002) giving effect to the approval of distribution undertakings,

assets and liabilities and provisional opening Balance Sheet of KPTCL and BESCOM

based on the Annual Accounts of KPTCL as on 31-03-2001. As per the provisions of 2nd

Transfer Scheme, after the stipulated period of one year i.e., by 31-05-2003, the same

became final. Opening Balance Sheet earlier approved and published vide G.O. and

Government notification dated 31-05-2002 read above were provisional and thereafter

Government had approved and issued final opening Balance Sheet of BESCOM as at 01-

06-2002 vide their order No. DE 48 PSR 2003 dated 31-05-2003/No.DE 48 PSR 2003,

dated 07 -10-2004.This has been notified and published as final. The changes effected

after the audit by KPTCL in the "transfer scheme" have been incorporated in the

accounts of the Company as per Annexure - 2 to Government Order NO.DE48 PSR 2003

dated 07-10-2004.

342

2 Basis of preparation

The Consolidated financial statements of the BESCOM (Parent) and PCKL

(Associate) are prepared on accrual basis of accounting under historical cost

convention in accordance with generally accepted accounting principles in' India

and the relevant provisions of the revised Schedule III of Companies Act, 2013

including accounting standards notified thereunder and also in accordance with the

provisions of Electricity (Supply) Act, 1948/ Electricity Act, 2003 where ever they

are applicable to the company.

3 Use of estimates

The preparation of Consolidated financial statements requires estimates and

_____ _ assumptions__tha_La_ffu~_t_the_r_eporred.amounr.ntassets, .Jiabili tLe_S,_Le_'ienu.e__& _

expenses during the reporting period. Although such estimates and assumptions

are made on a reasonable and prudent basis taking into account all available

information, actual results could differ from these estimates and assumptions and

such differences are recognized in the period in which the results are crystallized.

Accounting estimates could change from period to period. The management

reviews its estimates and assumptions periodically and appropriate changes in

estimates are made as the management becomes aware of the changes in

circumstances surrounding the estimates.

3.1 Consolidation procedure

CFSof the group comprising one associate have been prepared on the basis of

(a) Audited Accounts of BESCOM (Parent)

(b) Long investment in associates are accounted for under the Equity Method

as per Accounting Standard (AS -23 - Accounting for Investment in Associates in

Consolidated Financial Statement). The Investors share of results of operation of

the Associates is reflected separately in consolidated Profit & Loss Account.

343

4 Fixed assets and capital work-in-progress

A. TANGIBLE ASSETS

4.1 Fixed assets are carried at cost of acquisition or construction less

accumulated depreciation and impairment loss, if any. All costs, including

finance charges, foreign currency fluctuations till commencement of

commercial production/intended use attributable to fixed assets are

capitalized.

Expenditure on renovation and modernization of fixed assets resulting in

increased life and/or efficiency of an existing asset is added to the cost of

related assets.

4.3 Released assets are accounted on withdrawal/capitalization at written-down

..._._._._. .__._._._.__ _._._.__._yalll.e_(W.D !l}.- ---.__..--.-..-.-_._-..- --- - -.- ---.----..-..- -_ -..--_.-..- -. .--..--.---.- - -.- -- --.-

B .Intangible assets

4.4 Intangible assets are recorded at the consideration paid/incurred for

acquisition of such assets and are carried at cost less accumulated

amortization and impairment, if any.

4.5 Impairment of Fixed Assets;

An impairment loss is recognised wherever the carrying amount of an asset

exceeds its recoverable amount. The recoverable amount is greater of the

asset's net selling price and value in use.

344

5. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) -before

extraordinary items and tax is adjusted for the effects of transactions of non-cash

nature and any deferrals or accruals of past or future cash receipts or payments.

Cash comprises cash on hand and demand deposits with banks. Cash equivalents

are short-term balances (with an original maturity of three months or less from the

date of acquisition), highly liquid investments that are readily convertible into

known" amounts of cash and which are subject to insignificant risk of changes ill

value.

6. Revenue recognition

Revenue from Operations:

--_ ..__ .-- -_._. - .- -- ..._._ .._-- -_.- ,._--,-_._, .._----_._-_._........ -_.__ .._-_. _-----_._--_. ,._-------_._---._----_. ----_--_-_"_._-_.--_- __ ._--_.,.._--- ..---.-_---------------- .__ .,-------- -- ----

6.1 Sale of power is accounted vii.accrual basis at the tariff rates approved by' the

Karnataka Electricity Regulatory Commission (KERC). Revenue dues from

consumers whose ledger accounts are yet to be opened are accounted on an

estimated basis. The company accounts/discloses revenues net off electricity

taxes in its statement of profit and loss.

6.2 Revenue for the year is adjusted by estimating un-billed revenue demand for sale

of power to HT category on actual basis and a specified % on LT category for

the current year.

Other Incomes:

6.3 Income from services rendered is accounted based on the

agreements/arrangements with the concerned parties.

6.4 Cash discounts on Power Purchases prompt payments are accounted as and

when the related dues are settled.

345

6.5 Interest income is recognized on a time proportion basis taking into account

the amount outstanding and rate applicable.

6.6 Revenue grants and subsidies are accounted as stated in para 4.2 above.

7 BESCOM is having share of 100100 No. of Rs.l000j face value amounting toRs.10.Olcrs as investment made in PCKL which amounts to 49.92% of Shareinvestment existing in PCKL and considered as Associate to BESCOM as perCompanies Act 2013.

8 The Financial impact of Associate PCKLis as under:

r--:- I I

SI.No. Particulars Details

Power Company of Karnataka Limited,

i a) Description of Associate Bangalore

b) Proportion of Ownership Interest 49.92%

c) Proportion of Voting power 49.92%-- _._------- ._ ..__ ._- --d)-Bate Acquisitiondate----- ------- --------- - -_._------------ ----------11-;01;-201-2------- -------------

" ~\ I ~-" "''''P'''' investments 10.01 CiS

====1" YI .'-VI15 l,.\,;;,; lit III "-..J H.CI

b) Share of Profits or loss of such

investments

I Up to FY14 1.22 crs

For FY15 0.52 crs,

Total 1.74 CrsI--

iii Capital reserve arising on the acquisition 0.29 crs

346

9 Earnings per Share

Particulars Current Year Previous Year

Net Profit /Loss after tax ( In Rupees) 113 96 76 814 761031342

Weighted average no. of equity shares 546915 100 546915100

Basic Earnings per Share (In Rupees) 2.08 1.39

Diluted Earnings per Share (In Rupees)

for & on behalf of the board/company

CA.Niranjan.V.KPartner

ruprasad.B.L Pankaj Kumar PandeyFO&Director (Finance) Managing Director

Place: Bangalore

Date: t 25 ' CA . 20 1~

347BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDConsolidated Balance Sheet as at 31 March, 2015

1 Shareholders' funds(a) Share capital 1 54691 51 000(b) Reserves and surplus 2

(A) Capital Reserve 17118986085 142628 07 003(S) Others 1510800000 1330800000(C) Profit/(Loss) -4752411 162 -58920 87 978(D) Revenue Reserve 1 2223978

Sub Total (b) 138895 9701519025

A

2 Non-current liabilities(a) Long-term borrowings 3(b) Deferred tax liabilities (net) 4(c) Other long-term liabilities 5(d) Long-term provisions 6

B3 Current liabilities

(a) Short-term borrowings 7(b) Trade payables 8(c) Other current liabilities 9(d) Short-term provisions 10

C

TOTAL (A+B+C)

B ASSETS

Non-current assets(a) Fixed assets

(i) Tangible assets 11 505749 89 101 383241 16703(ii) Intangible assets 11 48653306 27557336(iii) Capital work-in-progress 12 14240748981 128624 09 702(iv) Intangible assets under development 13(v) Fixed assets held for sale

(b) Non-current investments 14 117564496 1001 00000(c) Deferred tax assets (net) 4(d) Long-term loans and advances 15 6244503225 677 79 71013(e) Other non-current assets 16- A

2 Current assets(a) Current investments 17(b) Inventories 18 2014244852(e) Trade receivables 19 667206 53 843(d) Cash and cash equivalents 20 1701568735(e) Short-term loans and advances 21 396541 739(f) Other current assets 22

S

For V.K.Niranjan & Co.CharteredA~cc_",tants

FRN~/

J~njan.v.KPartnerM.No: 21432

/~AvV"-~1 L ~~(Pankaj Kumar Pandey)Managing Director

Place:Date:

Place:Date:


12

Revenue from operationsOther IncomeTOTAL REVENUE

3 ExpensesPurchase of Power

er operating expensesEmployee Benefits ExpenseOther expensesFinance costsTOTAL EXPENSES

4 Profits before Depreciation, Prior period items, exceptional items,extraordinary items, Income Tax (1+2-3)

5 Depreciation

6 Profit I (Loss) before Prior period items, exceptional and extraordinaryitems and Income Tax (4-5)

7 Exceptional items (Expenses(+)lIncome(-)}

8 Profit I (Loss) before Prior period items, extraordinary items and Tax

7\9 Prior period Items - {Expenses (+) I Income (-)}10 Extraordinary & Prior period items {Expenses (+) I Income (-)}

11 Profit I (Loss) before Tax (8-9-10)

12 Income Tax Expense:(a) Current tax expense(b) Less: MAT credit(c) Deferred tax(d) Tax expenses relating to prior years

13 Profit! (Loss) from continuing operations (11-12)

14 Profit I (Loss) from discontinuing operations

15 Profit I (Loss) for the year (13+14)

16 Earnings per equity share of Rs. 10 each.

(1) Basic(2) Diluted

General note (Note No.30) form an Integral part of the•• financial statements

Place:

Date:

2323A

2425262728

29

30

3132

34631 69039 -3,044,688,760

Place

Date:

1997851796 1261825520

1465317243 -4,306,514,280

-4,741,507,

61 0531

257500000 49500

1139676 761031342

1139676814 761031

2.08 1.39

r:

------------------~------------------------~~~--------------------.BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

SI.No Particulars

CONSOLIDATEDCASH FLOW STATEMENTFORTHE YEARENDED31ST MARCH 2015

Previous Year 2013-14Amount in Rs. 349

Current Year 2014-2015A Cash Flow from Operating Activities

Net Profit before TaxAdjustments for:DepreciationFinancecostExtraordinaryitems- TrueupSubsidyChangein Provision for DebtorsChangein Provision for EmployeeadvancesChangeIn Provision for DismantledAssetsReversalof Deprecianon on GrantsAsset (Other Income)Other IncomePriorperiod charges(+)or credits(-)IncomeTax

13971 76812

1997851 7963976620444

77481 224

·1105038514

·59261598·257500000

81 0531 342

126182552032345436185245300000

261105558

9204649·1226509587

306738538·49500000

98532 39638

·654764070·11652129021

·1 8308920·25117 40 235

·81407477

589344391965646763343541588

·29672844522178916533449506263-306738538

·524 53 00 000

·73581 67 663·2827513468

355800000

1277 04 27 756·212 38 54 698

403417 940·3234543618

2733428751

·2102532275

·10185681 t31

10904676132

For aJ on behalfof ~e Boardof Directors

/~ AL~ ,~'L~:l" I' ''''

(EI.l Guru prasad) (Pankaj K ar Pandey)CFO&r irector (Finance) Managing Director

·1383537274

28184486061434911 332

Operating Profit before working capital changesAdjustmentsfor

Changesin InventoriesChangesin Sundry DebtorsChangesin Short term Loans and AdvancesChangesin Long term Loansand AdvancesChangesin Other CurrentAssetsChangesin Current Liabilities

Trade PayableOthercurrent liabilities

Changesin Short term ProvisionsChangesin Long term ProvisionsChangesin Other Long·Term Liabilities

Operating Profit after working capital changesPriorperiod charges(+)or credits(-)Extraordinaryitems- Trueup Subsidy

Net Cash inflow from Operating Activities

8 Cash Flow from Investment Activities

Changesin Fixed Assets (Net)Changesin Capital Work in ProgressInvestments

Net Cash Outflow from Investment Activities

C Cash Flow from Financing Activities

Changesin Capital/ShareDepositAccountChangesin Secured LoansChangesin UnsecuredLoansChangesIn l.onqt-Terrn BorrowingsChangesin Short-TermBorrowingsChange In Current maturities of long term

debts/Current liabilitiesFinancecost

Contributionsfrom Consumers/Reversalof DepreciationonGrantsAsset (Other Income)

RevenueReserve

Net Cash available from Financing Activities

D Net Change in Cash and Cash equlvalentsSurplus Cash [(A) + (8) +( C)]Add: OpeningCash and Cashequivalents

E Closing Cash and Cash equivalent:

6027330164

·456717173·786 93 02033

·84112449533467788

141 2934353

4429001602·250 31 28 964

26825580073826724

44658467266297402538

59261598

6356664136

·14269820164·137 83 39 279

·1 7464496·15665623939

1434911 332ForV.K.Nlranjan& Co.CharteredAccountantsFRN:24 fI

iranjan. V.KPartnerM.No: 21432

Place: B~galo::_("\ ~~~Date I~ ..U'i ,~O Ir /JtY \-:>..<-...\

180000000

13873059768011490100

·397 66 20 444

3961217 59612223978

9575617206

266657403

143491133217015687351701568735

Place: BangaloreDate I ~ ·nc, , ~Ol~

z.!I'::>"'onuBISCOM

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 350NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Nott> 1B -R':1concilation

Note 1C -Percentage of .Holding

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 351

NOTESTO THE CONSOLlDHED FINANCIALSTATEMENTS

Less: Reversal of depreciation

Closing Balance

Subsidies received from REC towards RGGVY scheme 55.210

14888095736 11987568695

1102470618

580745321044396086981105683 1044396086

1370411

13956812308421249784666 123084222.

1426280700417118986085

-589 20 87 9761139676' 814


NOTESTO THE CONSOLIDATEDFINANCIAL STATEMENTS

2469 35 58457

B UNSECURED LOANSTerm Loans From

-Banks (Refer Note 3B below)-Others (Refer Note 3B below)

Sub-Total

Bank of IndiaIn 28 Quarters, 27 quarterly installments ofRs.7.15Crore per quarter commencing from 3 years from thedate of first disbursement. 28th Instalment will be ofRs.6.95 Crores. Interest to be serviced monthly. ROI atbase rate +0.15% P.A.Presently 10.35% P.A. Secured

way of hypothecation of assets financed by the Bank8.11 Crs) First instalment will be due on

53.500

53.500

53.500

crs Repayment in 40 quarterlyeach tnterc.st to be paid as when due.

Rs.370crs base rate +1% presently 11.10%installment due on 24.01.2017. Hypotecation ofassets of the Company valued at Rs.417.09 crs.

4 Bank of MaharastraFor RS.125Cr The term of repayment in 28quaterty installment of Rs.4.47 Crs per quarterRS.4.31 crs in 28th quarter after initial moratoudum

ROI at B.R+0.10% & for Rs.27S.00 crsof Rs.9.28 crs per quarter &for 28th

after initial moratoirum period ROI

Repayment within 13 years (including moratorium periodof three years) payble in 33 quarterly instalment of Rs.3.3 Crore each. at the end of 30 th instalment will beRS.3.43 Crs Interest to be paid as & when due. ROIRs 100crs base rate + 0.25% pa (floting withoutresell.Sub-Total 11

3053200

:000000

352

1205 27 54 7774466120

22797

1428000000

3624800000

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITEDe81SCOM

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

353

53.3327

B Term Loans from Others1 Loans from Rural Electrification Corporation Limited.

New Delhi. -APDRP Counter part funding(Secured by Hypothecation of all existing

unencumbered moveable properties includingmachinery. equipments. machinery spares. tools.implements. and accessories installed I created Ierected and all future moveable including machinery,equipmelns, machinery spares. tools. implements, andaccessories installed I created I erected in future and itsstock of materials equipments bought or 10 be boughtout of Ihe loan amount at 8.5% & 11.70% interest rates.

)

220774100 41 7398490

14664809002 PFC - RAPDRP (Part A)

The tenure of loan will be 10 years from the date ofdisbursement including moratorium period of 3 years forboth Principal and interest. Interest to be paid as notifiedby Minislery of Finance from lime ·10time. 'Secured byway of hypotecalion on the newly financed assestsunder Ihe project as securities for loan. Firstinstalment due on 19.07.2012

53.347 1466480900

3(a) RAPORP PFC (8) (Counter part Funding)The loan shall be repaid in 60(SIXTY) equal quaterlyinstallments. The first installments become due on 15thday of october 2015 the subsequent installments willbecome due for payment on Ihe 151hday of January,15th day of April, 15th day of July, 15th day of October

~'!l1!Y.1~'!L . ..__---- ....---1--.'---------+------------ -.--.------ -.----.--.--..4 PFC DRUM PROJECT 53.337· 41065742 61598619

I53.340

2769727679 2609249302

I53.335 2301064644

I1663319810

3 RAPDRP PFC (B)

period of 5 years. The interest and interest lax on thesaid loan shall be borne by the Utility and shall begin toaccrue from the date of release of loan by Ministry ofPower .'Secured by way of hypotecalion on the newlyfinanced assests under the project as securities forloan.First Instalment falls due in the month of July-

2015

The Loan shall be repaid by the Disribution Company in40 equal quarterly instalments. The first instalment willbecome due on 151hday of April 2008 Interest on Ihesaid loan at the rate of interest prevailing on the date ofeach olst.ursernent. 'Secured by way of hypotecation ofall assets created under the loan.Repayment due :The first instalment will becomedue on 15th day of April 2008

53.347

53.347

435420000 1974522979 I

1509597409

5 JICA (Japan International Co-Operative Agency)

The bank agrees to lend the company an amount notexceeding YEN 10643000000 as Principal fur DASunder relavence laws & RegulaUon of Japan.TheCompany repay prinicipal amount in accordance withamortization schedule setforth in Ihe agreement.TheCompany shall· pay Ihe interest semiannuallyat the rateof thi6c- fviJiU' of one iiaicG,tt (O.75%)p.,6

e REC (TL) NJY Phase 2RepaY·'lp.ntwith in 13years (including moratorium periodof 3 years) principle installment is payable in equalannual installments and on 15 l~of the month in whichthe first disbusement was made.the rate of interest @11.5% PA'Secured by way of hypotecation of all assets crealedunder the loan.

7 REC (TL) OlC MeteringRepayment with in 13years (including moratorium periodof 3 years) principle installment is payable in equalannual installments and on 15 Ih of the month in whichthe first disbusemenl was made.the rate of interest @

11.5% PA'Secured by way of hypolecation of all assets createdunder the loan.

53.335 1364934209 1181896020


53.335

NOTES ;'0 THE CONSOLIDATEDFINANCIALSTATEMENTS

934114HVDS

53.335

53.335

354

74865901

1106719413

77 17 630

-1-·--·---·-----·--1------- ------.-.-----..-

9409719

89778752

6615110

291960383 333669010

9409719

from Government (tllrough REG) - RGGVYTotal repayment period will be 15 years .

5years moratorium period 10gether with interest5% • 12.25% with quarterly interest)Repayment beg;:" frorn 15/03/2012.

53.3357 106318898


i5"-IBEseOM

Loan tram GoK tor Power Sector AutomationLoan torperiod of ten years at the rate at 9% p.a.No specific

& Conditions Given However as per GO No FD01BLA 2002 dated:10.07.2003 Loan tor a period at tenyears & (irs( instalment begun in the month at

at the rate of 9% o.atram GoK Ganga Kalyana.

NOTESTO THE CONSOLIDATEDFINANCIALSTATEMENTS

53.3367

294053.3417

6

53.960

toan amount is accounted as per the adviseL and it comprising at various loans with .and conditions. Interest varies trom 10.75%

11%)Sub-Total

i Deposit Wor1<sDeposit Contribution Work

Other Deposits tram ConsumersSecurity Deposit from consumers:

47.301 to47.303,47.305,

47.307 to47.317,47.321,47.306

47

47.648.1+48.2+4

8.3

1844947383

355

4410000

5410 000

1812800 291

1159772671

BAN GALORE ELECTRICITY SUPPLY COMPANY LIMITED


356

':;1 L Tora penoa at -:'uOaays_10 oe repayea on fl1day of first drawal and interest to be serviced as

debited at 10.45% p.a(floting) i.e.. base rate ofSecurities: Floating charge on Book debts of

with 10'10Margin for 150 Crs.due starts on 13/06/2012

53.500

53.500

53.500

53.500

53.5007

24.42021.40924.41424.41524.428

11

500 00 00 000

200 00 00 000

1499938176

-----1---------------------- ----.-- -1----------

125 00 00 000

100 00 00 000

499999999

250 00 00 000

140 53 55 812196 02 66 7185030119192

Ii~BISCOM


42.1 to 42.5,42.6

40.30\)+46.301+46.441

. for Expenses

3 Payable to other ESCOMs

. -_ ..._-_._ ..- .---_ ..----_ .._------_._------._-----_._---_. ------------- ---- ----------- ..---------------

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 358eBaSCOM

Note 9 - Other Current Liabilities

NOTES TO THE CONSOLIDATEDFINANCIALSTATEMENTS

consumption charges LT & HT23.181&23.293

46.710

46.101

46.102

Revenue Suspense Account & Anywhere payment

Other PayablesStale ChequesRetention Money - Bill amount relained

Other ESCC~.~SESe

Excess credit under reconcilialion with Bank

Draught relief fund.Miscellaneous Deposits/Other liabilitiesAmount withheld from employees against recoverables

7746.978

46.966,46.9

28

I,,'JlIlIIUU'UUIl received by BESeOM againstIcomnensaucn to the victims of Electrical accidents.

47.323

296542981

9225519

351912

8974671623003271

·1915

459073

727200

28.105

44.21044.22044.31044.32044.330

46.800Provision for Income-Tax & Fringe Benefit Tax

380119757

13599611

351912140 669724497

2044695075

!... ·COM

iI

BANGALORE ELECTRICITY SU~PL Y COMPANY L1l'v•.. zo

NOTES TO THE CONSOLIDATED IAL STATEMENTS

e I eI::3ANGALORE ELECTRICITY SU~PLY COMPANY LlMII en

NOTESTO THE CONSOLIDATED FINANCIAL STATEMENTS!!

Note 11 - Tangible I Intangible Assets

1. Buildings includes shared assets as per KPTCL's intimation2. Addition includes released assets after reconditioning3. Deduction includes transfer of assets for reconditioning.4. Additions I deletions of assets and depreciation thereon include:

a) Items -penQjngreconcillation relating to inter unit transfers andb) Prior pe'rio~ adjustments.

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED361

NOTESTO THE CONSOLIDATEDFINANCIAL STATEMENTS

B DEPOSITSa) Security Deposits with Railways and Othersb) Security Deposit from Suppliers & Contractors otherthan cash.c) Deposit with Jurala Hydro Electric Project

28.9

28.930

20.251

5741413985 6267406224Loans and Advances - Others

a) Material Stock Account

Less :Excess IShortaqeMateterial imprest AccountOther Material Account

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED 362


22.610 197 95 53 04822.810-22.820 :- - =.23=91=89~2

22.64122.700

ii~B!SCOM



23.1

23.228.625

28.627

23.7

23.8

47.607,47.609,47.6117.612

27365

-52954241 9780797289

28.626

23.423.4

3884 58 60 897

le\ Amounts Receivable from GoK towards Free PowerSupply to IP sets upto 10HPd).Tariff subsidy Receivable from GOK towards BJ/KJinslallalion

. Unbilled Revenue - LT

12273157 10646021 185

Dues from Penmanentlydisconnected installations 23.5

12798451\ 498

23.9 12330561491

28.826,831,36,841

28.8

28.8281

23.:


NOTESTO THE CONSOLIDATEDFINANCIALSTATEMENTS

Cheques. drafts on handBalances with Banks:(l) in current accounts

(a) OperaUve Accounts with scheduled banks(b) Non-Operative Accounts with scheduled banks

24.40024.300 5896982381- -1

9195804271- -4(ii) in deposit accounts'

Siamps on Hand

20.2

24.120.24.13

28.850 27549421 27487860

28.821 135194590 77615299

28.821 7338842

recoverable from current employees 28.4 141305 9944228.402 30579

ex- 28.899 61856 61856 62677700

------_,-_ ..

Loans and Advances to Staff - Interest free 27.2 137309589

Remltlance to Head Office -Transit Account 24.5Transfers from Head Office In Transit Account 24.6 81258135

3 Amount paid to IT under protest 28.821 737933607

4 Other Receivables 28.72.28.74 10212735 102 127355 Receivables from Pension I Gratuity Trust 28.9 87321354 87321

6 Cash Receivables from Associates KPTCL 28.9ESCOMS

4526439995

7from GOK refund of rnetereqaiprnent

28.710deposit

8accured but not due on deposits (including Bank

28.2& 3 120595Deposits)

9 Prepaid expenses 28.820 1025Preliminary expenses to the extent not written off

Unit Accounts- Materials 31 -82723

32 24635

36 -15146437 -94012833 2334 49

10

Fa.IISCO,"


BJ/KJ Up To 18 Units Metered installations 61.101 31,05,38,974

BJ/KJ Up To 18 Units Un Meteredinstallations 61.102 76,975

BJ/KJ Above 18 Units having more than oneoutlet 61.103 23,16,50,788 30,13,33,816

Lighting/combined lighting, heating & motiveinstallations BBMP (Urban) - LT 2(a)1 61.111 24,73,59,34,302 21,54,05,55,828

lighting, heating & motiveinstallations (Urban Local Bodis other

LT 2(a)i - LT2 (a)ii 61.112 2,06,67.,20,610 1,18,50,15,794

Lighting/combined lighting, heating & motivepower installations (Village Panchayats) - LT

6 LT 2A III 2(a)iii 61.113 11,02,964

i lighting, heating & motive

7 T 2A FL power installations (Free Lighting) 61.114 6,43,75,703 6,45,28,300

including aided educational institutionsUrban Local Bodies including City

8 LT 2B I LT 2 (B)i 61.115 25,32,64,497 21,50,10:172

Lighting/combined lighting, heating & motivepower installations of Pvt.Professionalincluding aided educational institutionsVPs -LT2(b)ii 61.116 2,97,90,779 3,28,12,938

Commercial Lighting, heating & motivepower installations of ULBs including City

61.131 12,45,33,62,303 11,30,65,98,459

1,21,04,23,229 84,80,65,44061.132_----_._--- I

_------- .- _. - .._---- .. _ ..-----

power installations - Office Lighting 61.133 1,66,30,090 2,37,60,565

Revenue trom saie of power- commercial-applicable to Areas coming under VillagePanchayats- LT3(iii) 61.135·

IPSets upto and inclusive of 10HP-Unmetered installations till such time, metersare fixed-Rural feeders-LT4(a)i-Free power-Unmetered 61.141 13,58,79,09,389 7,81,7".45,348

IPSets upto and inclusive of 10HP-wheremeters are fixed-Rural feeders-LT4(a)i-Freepower-Metered 61.142 3,34,655

IPSets upto and inclusive of 10HP-Urbanmetered'LT4(a)ii-Free power-

61.143 69,368 8,56,340

61.146 25.18061.144 6,00,00:3461

1,26,72,199

20 LT 4C 61.145 10,66,03,792 1,09,81,150

21 61.147 26,76,597 2,85,326

& motive power (including lighting)LT 5A area upto & below 5HP - LT5(a)i 61.151 56,51,19,295 -54,79,69,630

& motive power (including lighting)Bangalore Metropolitan area for above

5HP & below 40HP (inclulding demand23 based tariff) - LT 5(a)ii 61.152 1,73,58,30,620 1,56,23,11,447

Heating & motive power (including lighting)of BBMP area for 40HP & above but below

(inclulding demand based tariff) - LT61.153


Heating & motive power (including lighting)-BBMP area for 67HP & above (inclulding

25 demand based tariff) - LT 5(a)iv 61.154 53,64,79,333 48,96,92,523

Heating & motive power (including lighting)of other than BBMP area upto and below

26 LT 58 5HP - LT 5(b)i 61.155 37,19,32,802 31,68,07,760

Heating & motive power (including lighting)of other than BBMP area for above 5HP &below 40HP (including demand based tariff)-

?.7 I.T Sln)ii Pi1 11ij:\ 9?1'\7 RS.~96 ~:'\ 2?,R77'lR

Heating & motive power (including lighting)of other than B8MP area for above 40HP &below 67HP (including demand based tariff)-

28 LT 5(b)iii 61.157 94,72,05,340 87,46,47,008

Heating & motive power (including lighting)other than BBMP area for 67HP and above

29 (including demand based tariff)- LT 5(b)iv 61.158 10,80,20,134 15,06,82,171

Water supply installations of VPslTP's and

30LT6BI TMC/CMCs - LT 6 61.171 3,59,35,52,605 3,17,72,03,418

Public Lighting installations of VPs / TP's

31 LT 68 II and TMC/CMCs - LT 6 61.172 2,94,74,72.349

\

2.71.09,62.997

Temporary Power Supply - LT installations -

32 LT 7 LT7 . 51.\.lJj- 2.?5.18,42,573 l,76,65,sn,13B

I Sale of Power L T category71252777931 5859 11 20 413

Drainage/Sewerage 8WSSB & Localbodies/KUWS & S8 -Water supply

33 HT 1 installations -HT 1 61250 2874894771 2694347684

34 HT 2A I Industires in BBMP area - HT 2(a)i 61.260 15952399837 14703842886

Industires in areas other than BBMP area -

35 HT 2A II HT2(a)ii 61.261 1717 77 04 142 15197909396

Revenue from sale of power - Govt.hospitals & Hospitals run by charitable

HT2C I institution, Educational institution 61.263 586944908 2517 79 882

Revenue from sale of power - Govt.hospitals & Hospitals run by charitableinstitution. Educational institution other than

------ _._- HlZ'CI, thbs-e-Cbvere<funderflT20-'--- -.-------- "-6T264' ---,a--rS-70726!-----._---_._- 1-----42"01'2'2'427 --,-,_- --'_'--

HT Commercial applicable to BBMP area -

~O\t-n<t> i Hr~lb)i 01.270 ziee 85 8u J04 I zi 1"106:JL .::90

Water Supply installations of VP'sITP's &

\TMC/CMC's - LT6 61.271 295203781 307817384

HT Commercial applicable to areas other

37 HT 2B II than BBMP area - HT2(b)ii '-1.273 1485830614 15177 68163

Lift Irrigation Schemes-Govt Dept & Govt

38 HT 3A I ownd Corporalions - HT3(a)i 61.260 38258365 40703067

Lift irrigation Schemes - Pvt LI Schemes and

39 HT3AII LI societies HT 3 a (iI) 61.261 135190 -1051 37960

Lift irrigation Govt Horticulture, Coffee, Tea,coconut. Arecant Etc Agricultural farms HT 3

40 HT 3B b 61.282 2731111 814113

61.269 664776 355232

Residential apartments and colonies of

41 HT 404. BBMP Area HT 4 (a) 61.290 7577 13 634 6071 23092

\

Residential apartments and colonies Urban

42 HT 4B Local Bodies other than HT 4 (a) - HT 4 (b) 61.291 25069685 982933

Residential apartments and colonies of VPs -

43 HT 4C HT 4 (c) 61.292 6076112 43008168

Temporary Power Supply - HT installations - ,44 HT 5 HT5 61.293 747910398 21 9600361

II Sale of Power HT category62601806554 5701 71 39 124

Total LT+HT13385 45 84 485 115608909537

III Other - Operating revenues

1 Fuse charges 61.901 66152 45399

2 Reconnection Fee (D&R) 61.902 10309711 619135

3 Public Lighting Maintenance Charges 61.9035788

4 Service Connection 61.904 471466126 398782078

5 Delayed payment charges from consumers. 61.905714315

6 Other Receipts from consumers 61.906 525188271 235908704

7 Registration fee towards SRTPV connection (Solar 61.907 1683515' 21452

8 Facilitation fee towards SRTPV connection (Solar 61.906 11000

9 ReCoveries for theft of power 61.710 51 15073.1013839848 S:i'60 91i 871

5 Provision for withdrawal of Revenue Demand 83.8 72377591 714 71 442

TOTAL 134796046742 11617 3S 34966


B••sea....



62.917

62.916

61.122

62.330 -79.573

62.901RentIncentives received 62.907+62.3

61+62.911+62.922+92+92

918

Excess provision made in prior period which is no longerrequired

of matenals found excess duimg physical verification

62.325

62.905

61.314

61.315

61.316 14087965

173304161.317

61.3

367

131438243

1288769722

2702

262332

26692

98478

1289665313

212593

632095381


NOTES TO THf.: CONSOLIDATED FINANCIAL STA fEMENTS

74.2 & 3

74.5

74.6

74.2

Civil works (Pipeline, Seweage, drainage and water supply) 74.3

Repairs and maintenance - buildingsLines, Cable Net Work Etc.

Vehicles

Office Equipments.

R & M charged to Capital Works (Credit account)

i and maintenance· others

Rentals/maintenance cnarqes

74.8

74.974.3 to 74.8

77.611

20312704

--_~--------I

13051 79T erminal Benefits 75.6 13431 75427 13431 75427

4 S tall Welfare

Medical Expenses reimbursement 75.611 10126494075.612 7698

Leave Encashment - For employees covered under 75.616 98361 98275_617

5

6 75.900

t 05 647451



;":

76.131.135.13710139.

352085414

76.136 29750318

76.151 3636061810,10"' 26518093

76.155.76.260

24653768

76.156 5936125

76.157 2610

76.15B 24915283

76.2011076.2B~

12241046

76.102 6875907

76.104.105.106.103

76.103

76.160

76.193

76.15476.152:162.1

190.191.1

19731 28358

22 S3

2205668735

10

11

12

13 & other material related expenses

14

15

76.194

Expenses charged to capitalworks (Credit Account) 76.900

18 & Low value items Written off 77.610

19 77.5

20 7B.B20 107B.B90

21 7B.600

22 7B.861

23 79.4BO

24 79.110

25 79.5

26 ;S.410g.79.430

22 79.511

23 for Loss on obsolescence of stores, etc in stock 79.561

24 tnterest on betated payment for power PurchaseSO.102 to

BO.149

369

370

B•• seo"",,



Interest capitalised on capital borrowings

78.868

78.810to78.815

78.900

1.ExcessprovisionforDepreciationinpriorperiod 65.6002. Excess/short provision for Interest & Financecharges 65.7003.0ther excess provision in prior period 65.800

401530388

B Debits relating to earlier years :1. Employeecosts relating to previousyear2. Depreciationunder providedin previousperiod3.lnterest and other finance chargesrelating to previous

83.50083.600

83.700

83.840

83.85083.300 11,60,893

164002782

.R FOR FY 2014-15LIMITED

============B=A=N~RE ELECTRICITY SUPPLY CAVERAGE RE:,....t..lSATIONRATE FROM SALE OF

Amount in Rupees & Consumption in Units

AverageRealisation

OpeningBalance

RevenueCollection

HOAdjustments

& withdrawals

ClosingBalance

DESCRIPTION TARIFFNoot

Financial details of BESCOM(13th Annual Report)

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