THE DURGAPUR PROJECTS LIMITED(A GOVERNMENT OF WEST BENGAL ENTERPRISE)
CIN U40102WB1961SGC025250ADMINISTRATIVE BUILDING,P.O. DURGAPUR-713201.
1st April,2019 to 31st March 2020
Chairman : Shri Sunil Kumar Gupta, I.A.S., [ w.e.f. 14.09.2017 to 06.12.2019]
: Shri Suresh Kumar Sepuri, IAS [w.e.f 20.01.2020]
Managing Director : Shri Ashis Saha [w.e.f. 01.09.2018 expired on 19.09.2020]
: Shri Goutam Biswas, Director [w.e.f. 01.11.2018 and appointed as MD w.e.f. 06.10.2020]
Director : Shri Rajesh Pandey, I.A.S. [w.e.f. 29.01.2016 to 28.06.2019]
: Shri Santanu Basu, IAS, Director {w.e.f 09.07.2019]
: Dr. A. N. Biswas, IAS, Director [w.e.f 21.06.2017 to 09.04.2020]
: Smt. Saswati Banerjee, I.A.S. (Retd) Independent Director [w.e.f. 21.06.2017]
: Shri Pranab Kumar Das Sharma, Independent Director [w.e.f. 06.05.2017]
: Shri Srikumar Banerjee Independent Director [w.e.f. 01.06.2019]
: Shri Saurabh Majumdar, Director [w.e.f. 25.06.2020]
Government Representative : Dr. P. B. Salim, IAS & CMD, WBPDCL [w.e.f 09.07.2019]
Statutory Auditor : M/S M. C. Bhandari & Co. (CA0049)
4, Synagogue Street Suit No. 205 2nd Floor Behind Central Bank of India, Kolkata - 700001
Cost Auditor : DGM & Associates
64, B. B. Ganguly Street (2nd Floor) Kolkata - 700012
Secretarial Auditor : D. Dutt & Co.
Swastic Centre 3rd Floor, Room No. 3E, P-8 Chowringhee Square, Kolkata - 700069
Bankers :UNITED BANK OF INDIA, Rajdanga Branch, KolkataUNITED BANK OF INDIA, Chowringhee Branch, KolkataSTATE BANK OF INDIA, station Road, DurgapurAXIX BANK, DurgapurINDIAN BANK, DurgapurTHE WEST BENGAL STATE CO OPERATIVE BANK, Kolkata
Registered Office : Administrative Building, P.O.-Durgapur, Dist. - Paschim Bardhaman, Pin - 713201Kolkata Office : 1593 Rajdanga Main Road, Kasba, Kolkata - 700107
UNITED BANK OF INDIA, Coke Oven Branch, Durgapur
INDEX
1. NOTICE 01
2. EXPLANATORY STATEMENT 02
3. DIRECTOR`S REPORT 03-26
4. COMMENTS OF CAGI UNDER SECTION 143(6) COMPANIES ACT, 2013 ON THE ACCOUNTS OF THE COMPANY AND REPLIES THE COMMENTS THE COMPANY 27-28
5. AUDITORS` REPORT AND COMPANY`S REPLY TO THE AUDITORS` REPORT 29-58
6. BALANCE SHEET 59
7. STATEMENT OF PROFIT & LOSS 60
8. CASH FLOW STATEMENT 61
9. NOTES FORMING PART OF FINANCIAL STATEMENTS 62-91
10. PROXY FORM 92-93
THE DURGAPUR PROJECTS LIMITED(A Government of West Bengal Enterprise)Registered Office: Administrative Building
P.O. Durgapur-713201, Dist.-Burdwan
thNotice is hereby given that the 59 Annual General Meeting of the SHAREHOLDERS of The Durgapur Projects thLimited will be held on Wednesday, 30 of December, 2020 at 3.00 P.M. at the Registered Office of the Company at
the Administrative Building, P.O. Durgapur-713201, Dist.- Paschim Bardhaman to transact the following business :
i) To receive, consider and adopt the Report of the Board of Directors on the workings of the company for stthe financial year ended on 31 March, 2020.
stii) To receive, consider and adopt the audited Balance Sheet of the Company as at 31 March, 2020 and the
Profit & Loss Accounts for the year ended on that date along with the Statutory Auditors' Report and the
Supplementary Comments of the Comptroller and Auditor General of India under section 139(5) of the
Companies Act, 2013 and the replies thereto.
iii) To approve the retirement/appointment of the Directors of the Company by the Hon'ble Governor of West thBengal from the Office on conclusion of the 58 Annual General Meeting of the Company.
iv) To note the reappointment of M/s Bhandari & Co, Chartered Accountants as the Statutory Auditor of the
company for the financial year 2020-21 appointed by the Comptroller & Auditor General of India at a
remuneration of Rs.3,50,000/-.
i) To consider the following resolution and to pass the same as an Ordinary Resolution, if thought fit, with or
without modification:
“RESOLVED THAT pursuant to Section 148(3) of the Companies Act, 2013 read with Rule 14 of the
Companies (Audit and Auditors ) Rules, 2014 as amended approval be and is hereby accorded to the
appointment of M/s. DGM & Associates, Cost Accountants, Kolkata-12 as Cost Auditor for the year 2020-
21 for Power Station only for a remuneration of Rs. 42,000/- only, all inclusive plus GST, as applicable, as
recommended by the Audit Committee of Directors in its meeting held on 06.10.2020.
BY ORDER OF THE BOARD OF DIRECTORS
Place : Durgapur
Date: 10.12.2020
( Goutam Biswas )
Managing Director
The Durgapur Projects Ltd.
.......................................................................................................................................................................Note : 1. A Member of the Company entitled to attend and vote at the meeting is entitled to appoint a Proxy to attend and
vote on a poll instead of himself and the proxy need not be a member of the Company. Proxies in order to be effective must be deposited at the Registered Office of the Company by not less than forty eight hours before the time for holding the meeting.
2. The Explanatory Statement relating to Special Business mentioned in the Notice as required by the Section
102(1) of the Companies Act, 2013 is annexed to the Notice.
N O T I C E
I. AS ORDINARY BUSINESS :
II AS SPECIAL BUSINESS:
1
EXPLANATORY STATEMENT PURSUANT TO SECTION 102(1)
OF THE COMPANIES ACT, 2013 FOR
ITEM NO. 1 UNDER THE HEAD SPECIAL BUSINESS
Section 148 (3) of the Companies Act, 2013 states that the Cost Audit shall be conducted by a
Cost Accountant in Practice who shall be appointed by the Board on such remuneration as may be
determined by the members in such manner as may be prescribed. Rule 14(a) (ii) of the Companies
(Audit and Auditors) Rules, 2014 as amended states that the remuneration recommended by the
Audit Committee shall be considered and approved by the Board of Directors and ratified
subsequently by the shareholders.
th The Audit Committee of Directors in its 45 meeting held on 06.10.2020 recommended the
proposal of re-appointment of M/s DGM & Associates, Cost Accountants having its Office at 64,
ndB.B.Ganguly Street, 2 Floor, Kolkata-700012 as Cost Auditor of the company for the financial year
2020-21 at a remuneration of Rs. 42,000/- all inclusive plus GST, as applicable, for approval of the
Board.
ndThe said recommendation was approved by the Board in its 622 meeting held on 15.10.2020.
Now, the said re-engagement of M/s DGM & Associates, Cost Accountants as the Cost Auditor of
the Company for the financial year 2020-21 is placed before the shareholders for their consent and
ratification.
The Board hereby recommends the said resolution for the approval of the shareholders of the
company as an Ordinary Resolution.
None of the Directors and Key Managerial Personnel and their relatives are interested or
concerned in the said resolution except as a Director and KMP of the Company
2
THE DURGAPUR PROJECTS LIMITED
DIRECTORS' REPORT FOR THE YEAR 2019-20
1.0: Financial Performance:
1.1: Unit-wise Profit/Loss:
2019-20 2018-19
To The Shareholders, The Durgapur Projects Ltd.
Gentlemen,
thThe 59 Annual Report of the Board of Directors on the performance of the Company together with audited Financial Statements for the year ended on 31st March, 2020, Report of the Statutory Auditors on those Financial Statements, other Statutory disclosures and Reports are placed for your perusal.
The financial year 2019-20 was ended with a net loss of Rs 392.24 Crore as against a net loss of Rs. 164.30
Crore incurred in the previous year. The profit or loss with and without the impact of Interest and Depreciation for
the year under report and those of the previous year are furnished below:
Profit /(Loss) before interest and depreciation 6778.39 31458.35
Less : Interest 33079.09 33704.03
Profit / (Loss) after interest but before depreciation (26300.7) (2245.68)
Less : Depreciation/Impairment and amortization 12922.89 14184.37
Net Profit / (Loss ) (39223.59) (16430.04)
N.B.: Figures within bracket indicate loss or negative figures.
The Durgapur Projects Limited as a Power Generating Company has tried to supply power to its only
consumer WBSEDCL unhindered. Although COGP Plant is under suspension since 03.07.2015 and
subsequently closed down as per decision of the State Cabinet, unit wise segmental Accounts have been
compiled as the related manpower are still being carried pending their redeployment in Govt.
Departments, as contemplated in the order for restructuring of the Company. Accordingly, as per
Company's Accounting Policy followed consistently, separate Financial Statements comprising Profit &
Loss Statement and Balance Sheet have been prepared for the business segments for the year 2019-20
as before and the net financial results for the years 2019-20 and 2018-19 are furnished below:
Name of Unit Net Profit / (Loss) (Rs in lakhs) Net Profit / (Loss) (Rs in lakhs)
Coke Oven Group of Plants (2348.82) (4568.46)
Power Plant (36399.53) (10124.29)
Water Works (475.23) (1737.29)
Total (39223.59) (16430.04)
N.B.: Figures within bracket indicate loss or negative figures.
Particulars 2019 – 20 (Rs. in lakhs) (Rs. in lakhs)
2018 – 19
3
1.2: Salient points having impact on the financial results of the year 2019-20:
2.0: Restructuring of DPL:
3.0: Share Capital & Plan Outlay:
3.1: Share Capital:
3.2: Plan Outlay:
3.3: Non Plan assistance:
3.4: Dividend :
3.5: Employee Stock Options:
` i) The financial results of the Company for the year under report has been worked out after taking into
consideration the effect of the anticipated income the Company likely to receive through regulatory
assets by way of additional Tariff that may be allowed for realization as arrears from the consumers
against the Annual Performance Review (APR) Petition for the year 2018-19. Thus the regulatory
assets as of 31.03.2020 are for the years from 2014-15 to 2018-19 for which the APR Orders have not
been issued by WBERC till preparation of the Accounts for the year under report. The anticipated
income on such regulatory assets for the year 2018-19 has been conservatively self-assessed like
previous years although the APR petition for the said year of 2018-19 is yet to be submitted, to be
considered as being for Discom for 9 months and Genco for 3 months.
ii) The year under review has seen relatively higher losses over last year mainly due to lower capacity
utilization for inadequacy of working capital availability, higher incidence of employee benefit cost on
account of higher load of actuarial gratuity and leave salaries as a result of implementation of ROPA -
2020 as well as related effect of restructuring exercise involving transfer of Distribution and
Transmission activities in the previous year.
Relevant information in respect of each business segment has been given in the “ Management
Discussion and Analysis” which forms part of this Report as Annexure-I.
Pursuant to the decision of the Government of West Bengal for restructuring of The Durgapur Projects Limited
(DPL) vide its Notification No.319-PO/O/C-IV/1E-60/13 (Part-VA) dated 08.12.2017, DPL is operating as a
Power Generating Company only w.e.f 01.01.2019. The Transmission and Distribution activities have been
transferred to WBSETCL and WBSEDCL and Slump Transaction Agreements with the aforesaid Companies
have been executed on 11.04.2019 and 30.09.2019 respectively. The transfer of share of DPL currently owned
by Hon'ble Governor of West Bengal to WBPDCL is, however, yet to be completed.
The Authorized Share Capital of the Company as on 31.03.2020 was Rs.3000.00 Crore out
of which Rs.1815.29.00 Crore has been issued and paid-up. The entire share capital is held by the Hon'ble
Governor of West Bengal and six other shareholders hold one share of Rs. 1000.00 each as Nominees of the
Government of West Bengal.
The Government of West Bengal has not allocated any plan outlay during the year 2019-20 as
equity.
The State Government has not provided any financial assistance during the period
under review as Non Plan assistance.
No dividend has been declared by the Company. Further, no dividend was received by the
Company during the year on investments in Shares made by the Company.
The Company had not declared any scheme for Employee Stock Option
pursuant to the relevant section of the Companies Act, 2013 and related Rules of the Companies (Share Capital
& Debenture Rules, 2014) as amended.
4
4.0: Deposits & Loans taken and Investments made:
4.1: Deposits:
4.2: Loans:
4.2.1 The Company had taken loan from Government of West Bengal, M/s Power Finance Corporation Ltd (PFCL)
4.2.2: Grant:
4.3: Investments:
4.3.1.
4.3.2.
4.3.3.
5.0: Management Discussion and Analysis:
6.0: Pollution Control:
6.1: Power Plant:
6.1.1: Decommissioning of Old Units:
The Company did not take any deposit.
and Central Electricity Authority (CEA). The major part of the loan was taken from M/s. Power Finance Corporation
Ltd for 300 MW Unit No.7, 250 MW Unit No.8 and Augmentation of T&D Net Work. However, all the loans from
PFCL were effectively subsumed into a single Term Loan of Rs. 2660.00 Crore on 15 February 2018, later
increased to Rs. 2690 Crores out of a sanction of Rs. 2700 Crores for the purpose. The outstanding State
Government Loan as on 31.3.2020 was about Rs 391.69 Crore with accumulated interest of about Rs.421.90
Crore. The loan and outstanding interest from CEA stood at Rs.11.81 Crore and Rs.47.27 Crore respectively.
An amount of Rs. 1.34 Crores was received as grant from Govt. of West Bengal during the year for
the purpose of erecting fences in certain parcels of land in Piyala and Township areas for preventing
encroachment.
The Company had invested Rs.30.15 lakhs in 8,30,000 shares of Rs. 10/- each including bonus shares in
M/s. Bengal EMTA Coal Mines Ltd., a Joint Venture Company of DPL, WBPDCL and EMTA Coal Ltd formed for
the purpose of operation of captive coal mines for onward supply of coal to the power stations of WBPDCL and
DPL. The share of DPL was 6% of the paid up equity capital of that Company. The said investment has been shown
at “Nil” value after considering diminution of entire value, being of unquoted shares in the current year as well as
considering the fact that the very purpose of forming the said Joint Venture Company has ceased to exist
consequent upon de-allocation of the coal blocks by the Hon'ble Supreme Court of India with effect from
31.03.2015 which included the coal blocks mined by M/s. Bengal Emta Coal Mine Ltd. It is to be noted that all the
Directors representing the State Government, WBPDCL and DPL resigned from the directorship of the said
Company during August to September, 2015.
The Company holds equity in Share Capital of Rs.7,500.00 in the Durgapur Projects Employees
Multipurpose Co-Operative Society Ltd., constituted by its employees.
The Company did not make any investment or had not given any Loan and Guarantees to any company
pursuant to the provisions of Section 186 of the Companies Act, 2013.
The Annual Report also contains a separate section on
Management Discussion and Analysis which forms part of this Report as an Annexure-I.
In order to comply with the environmental laws and rules, the company undertook actions
at different areas of Power Plant as enumerated herein under:
Following Pollution control measures were taken for Power Station:
th The Board in its 615 meeting held on 05.10.2018 accorded its in
principle approval for decommissioning of Unit No.6 of 110 MW capacity subject to intimation to CEA and WBERC.
thThe State Government in its 54 Cabinet meeting held on 01.02.2019 decided to decommission and dismantle
5
Unit No.6. W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in favour of m-junction Services Ltd has
been issued w.r.t valuation of COGP Plants. The duration of the contract is 18 months from the date of Work Order
starting from valuation to its ultimate disposal. M/s m-junction has submitted a fresh evaluation report in sealed
envelope considering our request for revision. Accordingly, a high level Committee has been constituted by the
Managing Director which would open the sealed envelopes and recommendation of the Committee and its
subsequent endorsement by the Managing Director would be placed before the Board in its next meeting for
obtaining final acceptance.
Emissions from the stacks of Units no 7 & 8 are being monitored on regular basis by The
West Bengal Pollution Control Board as well as its recognized Laboratories and results of which are quite
satisfactory and generally comply with the specified norms.
Water sprinkle system has been adopted in Coal Crusher as well as in storage area of coal
for controlling the fugitive dust. DPL has also made arrangement for sprinkling of water in the Ash Handling area
and its adjacent road for arresting the fugitive dust emission. Job of covering Ash Bed with soil has already been
completed and had installed Water Sprinkling System at dust prone areas. Further action has been taken by Coal
Handling Plant (CHP) of DPPS for renovation of Dust Extraction System of Coal Crusher House.
Installation and commissioning of Continuous
Ambient Air Quality Monitoring System has been done by M/s Environment SA. This system is successfully
commissioned in the month of June, 2018 and the same is functioning round the clock.
Water is used for Power Plant as well as drinking purpose which is obtained from the river Damodar
after requisite treatment in DPL's captive water treatment plant. DPL have also undertaken a project for recycling
of water from the Ash pond and arranged for preliminary treatment for reuse.
Construction jobs in Plant as well as Colony area are being carried out with
Fly Ash products like Bricks and Blocks etc which promotes the use of Fly Ash products. Dry Fly Ash is being
supplied to cement industries others after supplying to Fly Ash Brick Fields free of cost as per their
requirement. A considerable quantity of ash has been utilized in development of low land also.
Installation and commissioning of Effluent Quality Monitoring
System has been done by M/s Axis Nano Technology Private Limited and connected with CPCB portal. This
system is successfully commissioned in the month of February, 2020 and the same is functioning round the clock.
In accordance with the prescribed regulations of WBERC, a
“Consumer Grievance Cell” has been constituted comprising Officers of appropriate level and the said Cell is
functioning for redressal of grievances of the consumers. Further, no Grievance was received during the year.
However, the said functions have gone over to WBSEDCL after 01.01.2019 after transfer of distribution activities
to them.
The Company complies with the requirements of Right to Information
Act, 2005. The names of State Public Information Officer (SPIO), DPL and Assistant Public Information Officers
(APIO) for various specified areas of the Company have been notified. The information sought for under the said
6.1.2 Stack & Emission:
6.1.3 Fugitive Dust:
6.1.4: Continuous Ambient Air Quality Monitoring System:
6.2: Water:
6.3: Disposal and Utilization of Ash:
6.4: Effluent Quality Monitoring System :
7.0: Statutory & Regulatory Compliance and Disclosures:
7.1: Redressal of Consumer Grievance :
7.2: Right to Information Act (RTI), 2005:
and
6
Act is being furnished in prescribed manner. During the period from January, 2019 to December, 2019, a total of 19
letters asking for various information were received and the replies to the same were forwarded in all the cases
barring 03, cases of which were disposed of as per order of the State Chief Information Commissioner.
The Company as provider of essential services like power and water has certain degree of security threats and
accordingly security arrangements are made to protect plants, offices and other establishments of the Company
spread over a large area in Durgapur and other locations. The strength of available permanent Officers and Staff
of Security Department is as under out of 424 sanctioned strength of 1972:
` a) CSO – 01
b) Manager (Security) – Nil
c) Inspector – 04
d) Sub Inspectors – 01(Contractual)
e) Asst.Sub Inspectors – 05(including 02 contractual)
f) Havildars – 00
g) Security Guards – 00
Total – 11(including 03 contractual)
However, we are engaging 230 heads of Security Personnel from Ex-Servicemen/Ex-Paramilitary category to
guard our several installations through e-tendering basis. Additional 58 heads of un-skilled casual labourers were
engaged in Security Department with the approval of the Board of Directors to assist the Departmental Security
staff and 36 nos. of personnel from Police/SAP/JC.
Consequent upon long suspension of the operation of the entire Coke Oven and existing Power Station area
(Unit1 to 6) and withdrawal of operation staff from there, Security Department is facing uphill task of guarding this
entire idle plants with its scanty manpower. Due to the deficiency of departmental staff and Officers, the 10 nos. of
DBBL Guns and 02 nos. of Revolvers available with the Security Department cannot be properly utilized. There are
immediate needs for induction of some Officer with requisite backgrounds as per the companies laid down policy in
Security Department for managing the security affairs of the company.
a) One employee namely Shri Zalim Majhi (Employee No.10498), designation – SOA of Coke Oven was
apprehended at Main Gate while he was taking out Steel materials and handed over to the Police for
taking appropriate legal action. A case no.295 dated 07.10.2019 under Section 41 CRPC and 379/411
IPC has been started against him as well as separate domestic enquiry has also been initiated against
him.
b) There was a report of theft (i) from Power Plant Store and a complaint to this effect lodged with local
thPolice Station case No.40/2018 dated 20.03.2018 u/s 379 IPC and (ii) 8 Unit cable trench vide case
no.206/19 dated 23.11.2019 for which Section 379/411 IPC have been started.
c) Apart from the above, it has been observed that there are sporadic movement of miscreants in the idle
plants, the operation of which remain suspended since long period of time. Security department
nabbed few miscreants of such area on different times and handed them over to the Police Authorities
for taking legal action
7.3: Report on the Security Department:
7.3.1 Crime:
7
8.0: Conservation of Energy / Technology, Absorption:
8.1: Energy Conservation measures:
8.2: Technology Absorption:
8.3: Particulars of Employees' u/s 134 of the Companies Act, 2013:
8.4: Particulars of Contracts or Arrangements with Related Parties:
8.5: Foreign Exchange Earnings and Outgo:
9.0: Directors' Responsibility Statement:
As energy conservation measures, certain actions are required to be
carried out by the designated consumers as per relevant provisions of the Energy Conservation Act, 2001. The
actions thus required have been termed as “Perform, Achieve and Trade”. DPL is required to comply with this
requirement. An Energy Auditor accredited by BEE (Bureau of Energy Efficiency), Government of India was
appointed on 2017-18.
Among the various ENCON points suggested by them, following actions have been undertaken in FY 2019-20.
Overhauling of both Unit No.7 (Boiler & Auxiliary) & Unit No.8 was undertaken during the year under review as
energy efficient measure. Following energy efficient improvement measures are undertaken:
i) Checking of Condenser tubes for fouling or air ingression during the OH of both Unit 7 & Unit 8 to improve
vacuum.
ii) Checking & Replacement of the APH internals like worn out baskets of both Unit 7 & Unit 8 to improve gas
efficiency.
No agreement has been executed by the Company with any Overseas Organization
for technology absorption.
Since the Company is an unlisted Public
Company, the provisions of Section 134 of the Companies Act, 2013 read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Amendment Rules, 2016, is not applicable. Besides,
there is no such employee who draws any remuneration exceeding the stipulated limit.
The Company did not enter into any
Contract or Arrangement with Related Parties as required under Section 188 (1) of the Companies Act, 2013 for the
financial year 2019-20.
The details of foreign exchange earnings and outgo etc. during
2019-20 were as follows:
a) Foreign Exchange Earnings : NIL
b) Foreign Exchange Outgo (In terms of rupee) :
(i) Import of Spares : NIL
(ii) Expenditure in Foreign Tour : NIL
According to the provisions of clause I of Sub section (3) & Sub Section
(5) of Section 134 of the Companies Act, 2013, this is to state:
i) That in preparation of the Annual Accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures;
ii) That the Directors had selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company at the end of the financial year 2019-20 and of the Profit and Loss of the Company
for that period;
iiii) That the Directors had taken proper and sufficient care for the maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities;
iv) That the Directors had prepared the Annual Accounts on a going concern basis.
v) That the Directors had devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.
8
10.0: Statutory and other Auditors:
11.1: Statutory Auditor:
11.2: Cost Auditor:
11.3: Secretarial Auditor:
11.4: Internal Auditor:
12.0: Vigilance Mechanism:
13.0: Internal Financial Control:
14.0: Fraud Reporting:
The Company has complied with the requirements of the Companies Act,
2013 in respect of requirements with regard to various Audit and Audit Committee of Directors as detailed below:-
M/s M.C Bhandari & Co, Chartered Accountants, was re-appointed as Statutory
Auditors of the Company by the Comptroller & Auditor General of India under Section 141 of the Companies Act,
2013, for auditing the Accounts of the Company for the financial year 2019-20 at an Audit fee of Rs.3,50,000/- plus
GST and reimbursement of such out of pocket expenses, as may be actually incurred for the purpose and
Transport facility or reimbursement of actual conveyance charges to the partners and Staff for travelling in
connection with the Audit. The said appointment was approved by the Audit Committee of Directors and by the thBoard of Directors and subsequently ratified by the Shareholders of the company in the 58 AGM held on
30.12.2019. The Statutory Auditors has submitted their report which along with observation of the Management
would be annexed to the Annual Report. The Report of CAGI on the Annual Accounts on its receipt shall also be
made a part of the Annual Report.
M/s. DGM & Associates, Kolkata, Cost Accountants were appointed as Cost Auditor under
section 148 of the Companies Act, 2013 to audit the Cost Accounting records of the Company for Power Plant for
the financial year 2019-20.
Your Company falls under the ambit of the threshold limit prescribed in the Companies
Act, 2013 and related Rules made there under for “Secretarial Audit” in the Company by a whole time Company
Secretary in practice. Accordingly, M/s D.Dutt & Co, Company Secretaries were appointed through Expression of
Interest as the Secretarial Auditor of the Company for the financial year 2019-20 at a remuneration of Rs.40,000/-
plus applicable taxes, if any, and reimbursement of actual travelling expenses as proposed by the Audit
Committee of Directors and approved by the Board of Directors. The Report submitted by Secretarial Auditor was
noted by the Audit Committee and Board of Directors. It has been attached as Annexure “II”.
The strength of the Departmental Internal Audit not being adequate and commensurate
with size of the Organization, external support has been taken by engaging a Practicing Chartered Accountants
Firm to carry out internal audit on a regular basis. During the year under report, M/s Ghosh & Associates,
Chartered Accountants, Durgapur-713216 were appointed as the Internal Auditor of the Company for a period of
one year with effect from 01.10.2019 and therefore, they had carried out the internal audit for the last two quarters
of the financial year 2019-20. The first two quarters of the FY 2019-20 was conducted by the earlier Auditor i.e M/s
S.K.Chowdhury & Associates. Reports submitted by the said Firm for the year 2019-20 were also reviewed by
Audit Committee of Directors.
The Company has a Vigilance Cell. Further, in line with the instruction from the
State Government, a decision was taken by the Board to subject the Company under the coverage of the State
Vigilance Commission. Actions were taken to strengthen Vigilance Cell through placement of Services of
experienced Officials from other departments. Attempts are made to ensure proper vigilance particularly over risk
prone areas requiring attention.
The internal control system of the Company is commensurate with its size and
nature of business. The internal control system is designed to safeguard and protect the Company from loss,
unauthorized use or dispossession of its assets etc. All the transactions are properly authorized, recorded and
reported to the Management. The Company is following all the applicable Accounting Standards for properly
maintaining the Books of Accounts and reporting in financial statements. The Internal Auditor of the company
checks and verifies the internal control and monitors them in accordance with policies adopted by the company.
According to information available, no fraud has been reported by or against the Company
during the year under report.
9
15.0: Risk Management Policy:
16.1: Disclosures under Sexual Harassment of Women at workplace (Prevention, Prohibition & Redressal) Act,
2013:
17.0: Composition of Board and Report on Corporate Governance:
18.0: Acknowledgement:
The Board of Directors has adopted a Comprehensive Risk Management Policy
which was recommended by the Audit Committee of Directors. The said Risk Management Policy is in place since
September, 2015. The Risk Management Policy has given focus on various aspects of Risk Management Strategy
comprising Identification, Assessment, Estimation, Evaluation, Control and Reporting of all vulnerable and risk prone
areas and activities. The Internal Audit Department makes review of the risk areas accordingly.
The Company has complied with the applicable provisions of the Sexual Harassment of Women at Workplace
(Prevention, Prohibition & Redressal) Act, 2013 and during the financial year 2019-20, no such incident has been
reported.
A report on Corporate Governance practices
adopted by the Company and relevant information thereto including composition of the Board of Directors has been
furnished separately as Annexure-III to this report.
The Board of Directors takes this opportunity to express its sincere thanks to the
Company's Consumers, Customers, Suppliers, Service Providers and all the Stakeholders for their continued
patronage. It would also like to place on record its gratitude for the guidance and support provided by various
Departments of the Government of West Bengal, concerned Ministries of the Government of India and particularly
Central Electricity Authority, West Bengal Pollution Control Board, West Bengal Electricity Regulatory Commission,
Durgapur Municipal Corporation, Asansol Durgapur Development Authority, Bankers, Power Finance Corporation Ltd,
West Bengal Power Development Corporation Ltd., West Bengal State Electricity Distribution Co. Ltd., West Bengal
State Electricity Transmission Co. Ltd., Coal India Limited and its subsidiaries, all the Railways, BHEL, WBMDTCL
and all other persons and organizations associated with the Company.
The Directors acknowledge and place on record its appreciation for the co-operation extended by the Statutory
Auditor, Cost Auditors, Secretarial Auditors and the Office of the Comptroller and Auditor General of India.
The Directors also acknowledge the contribution of the employees and various representative bodies of the
employees and expect that they will strive to improve the performance of the Company in the years to come.
The Directors would like to express their gratitude for the support and encouragement received from the Department
of Power, Government of West Bengal.
Sd/-(Shri S.Suresh Kumar, IAS)
Chairman
Dated:27.11.2020
10
ANNEXURE – I
MANAGEMENT DISCUSSIONS AND ANALYSIS
The report is placed with forward looking approach. All the observations, assumptions and
projections are based on the trend in the industry as envisaged from recent developments. This report
should be read in conjunction with the financial statements and other information included herein.
The business of the Company was affected in the year under review due rdto reduced demand from WBSEDCL. The State Government in its 53 Cabinet meeting held on 16.01.2019
approved the proposal of closure of Coke Oven Group of Plants, dismantling of the redundant plants which
are non-functional and have no commercial viability. It was further decided for engagement of a Valuer from
amongst the Empanelled Valuers of the Government of West Bengal through limited tendering for valuation
of assets and plants to be dismantled and disposed of through e-auction. The said Valuer has been selected
and they have commenced their job from June 2020. The Water business was less affected.
Indian power sector is undergoing a significant change that has redefined the industry
outlook. Sustained economic growth continues to drive electricity demand in India. The share of thermal
energy in the power generation segment remains identical to the global average, at just over 60% of total
installed capacity. However, while renewable account for more than 20% of energy generation in India, this
figure stands at just 15% for the rest of the world. In other segments such as hydro and nuclear power, India
remains largely at par with the global energy landscape. For the foreseeable future, growth in India's energy
generation capacity is expected to be driven by renewable, although the power generation sector still has
immediate challenges to overcome. As mentioned, Covid-19 has not had much of an impact on energy
demand, although a small blip was recorded owing to broader economic issues. It is expected that demand
should recover within half a year. However, pressure on incomes and revenues has led to large scale
payment delays, leaving energy generation companies with significant receivables in the near future.
W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in favour of m-
junction Services Ltd has been issued w.r.t valuation of COGP Plants. The duration of the contract is 18
months from the date of Work Order starting from valuation to its ultimate disposal. M/s m-junction has
submitted a fresh evaluation report in sealed envelope considering our request for revision. Accordingly, a
high level Committee has been constituted by the Managing Director which would open the sealed
envelopes and recommendation of the Committee and its subsequent endorsement by the Managing
Director would be placed before the Board in its next meeting for obtaining final acceptance.
Water Works is also one of the important business segments though not that large in terms of
volume. It is primarily used for the purpose of captive requirement of water for Plant and Township. The water is
also supplied to other industries and residential areas either directly or through ADDA or DMC. During the financial
year 2019-20, the performance of Water Works was satisfactory. New domestic connection for water is
discontinued since past many years. The details of sales of water to various consumers during 2019-20 are given
as under:
i) Industrial consumers – 2677225 KL for Rs.4,82,29,747/-
ii) Drinking Water – 10560663 KL for Rs.4,85,56,530/-
iii) IPT for both industrial and drinking – 14598568 KL for Rs.21,89,78,520/-
1. Approach:
2. General overview of the business:
3. Power Business:
4. Coke Oven Group of Plants:
5. Water Works:
11
6. Physical Performance of different Business Segments:
6.1 Generation of Power and processing of water:
6.2 Sales:
6.3 Sale of Power to WBSEDCL:
7.0: New & Ongoing Projects:
The performance of the Plants in terms of Generation and
Production etc., for the year 2019-20 and that of the previous year are furnished below:
Sale of Power, Coke, Water etc, during 2019-20 and that in the previous year are furnished
below:
Amount - Rs. in Crore
Residual COGP product MT – 17.07 – – & Coke conversion charges
Tar & By-Products MT – – – –
*Water KL 27,836.456 31.57 28,490.071 32.49
Ash MT 475822.39 10.71 – –
*Sale of water includes Inter Plant Transfer.
During FY: 2018-19, DPL functioned as distribution licensee along with embedded generation upto 31.12.2018
and thereafter as per Notification No 328/PO/C-IV/1E-60/13 (Pt-VA) dated 26.12.2018 of the Department of
Power & NES, Government of West Bengal, the entire distribution business and transmission business presently
undertaken by DPL along with all associated assets and liabilities have been transferred to WBSEDCL and
WBSETCL respectively with effect from 01.01.2019 and DPL started to function as generating company from
01.01.2019.
As GENCO, w.e.f 01.01.2019, DPL sale its entire ex-bus energy to WBSEDCL. Details of sale of ex-bus energy to
WBSEDCL during the period from Jan'19 to Mar'19, F.Y 2019-20 and from Apr'20 to Aug'20 are presented below
MU MU MU
507.28 1982.69 899.896
It is informed that in addition to setting up of 200 KWp Solar Power Plant in the first phase and 300 KWp Solar
PV Plant in second phase on the roof of utility buildings, another project of setting up of ground mounted
Solar PV Power Plant of array capacity 7 MWp plant at Durgapur has been envisaged. M/s Exide Industries
Limited has been entrusted by WBREDA for setting up of a ground-mounted Grid connected Solar PV Power
Plant of array capacity of 7MWp in DPL, Durgapur. The site was handed over to the Party in the month of
December, 2019. Installation job of this project is yet to commence.
Item Unit 2019-20 2018-19
Power MU 2231.728 2343.22
Water MLtr. 28,726.95 29,903
Unit Sale for the year 2019-20 2018-19
Quantity Amount Quantity Amount
Power MU 1982.688 798.24 2287.473 1060.44
From Jan 2019 to Mar 2019 F.Y. 2019-20 From Apr. 2020 to Aug. 2020
.
12
8.0: Other Plnt related information:
8.1 Coal Purchase Agreement for Power Plant:
8.2 Performance of Water Works:
9.0 Land Survey:
10: Captive Coal Block:
Coal required for the Power Station is purchased from
Eastern Coalfields Ltd., Mahanadi Coalfields Ltd and Bharat Coking Coal Ltd. in terms of respective Fuel
Supply Agreements (FSA). Initially, the total quantity was 22 lakhs MT per year from ECL, BCCL and
MCL together. It was reduced to 18.40 Lakhs MT per year after decommissioning of Units 1 to 5 and
considering power plant capacity of 410 MW, comprising 110MW Unit No 6 and 300MW Unit No7.
However, ACQ for Eastern Coalfields Ltd. and Mahanadi Coalfields Ltd had been revised by swapping
2,00,000 MT from Mahanadi Coalfields Ltd to Eastern Coalfields Ltd., and consequently the ACQ for
Eastern Coalfields Ltd., Mahanadi Coalfields Ltd and Bharat Coking Coal Ltd. became 5,00,000 MT,
5,00,000 MT and 8,40,000 MT, respectively. No provision of coal linkage is available for Unit No.8.
Hence, the coal available as per FSA not being adequate, aDPL obtained the captive coal mine in
respect of which details have been given at Sl.10. However, through an intimation in the month of
January 2020 from Coal India Limited (CIL), the above ACQ has again been revised for a total quantity of
17,66,000 MT, consisting of 4,57,000 MT of ECL, 7,86,000 MT of BCCL and 5,23,000 MT of MCL.
During the year under review, although Water Works continued to
remain a profitable business, the segmental results reflected a loss due to an accounting provision for
unrealized debts since 2004 from MAMC. The tariff for IPT and industrial water was not revised during
the year under report.
In order to make a complete assessment of land available with DPL and proper
documentation of the same, comprehensive action was taken. Based on available records, the total land
area of the Company is 3107.673 acres out of which, freehold area is 3103.634 acres and leasehold
area is 4.039 acres. A special exercise was undertaken for survey, identification, ascertainment of
present status and documentation of the Land owned by DPL and considerable progress has been
made in this regard. Land survey and assessment of available land has been completed for entire land.
The total freehold area of DPL is 3103.634 acres which include 1067.040 acres at Bidhannagar, a part of
which has been allotted by ADDA to different Allottees of which 115 acres are vacant which has been
marked with barbed wires. Process for Mutation for the entire 3103.634 acres land was started and has
been completed except for 209.29 acres at Bidhannagar out of 1067.04 acres in respect of which
hearing by BLRO, Faridpur, Durgapur is in process.
In the meantime, DPL is continuing its efforts for completion of mutation of residual portion of 209.29
acres of land out of 1067.04 acres of land at Mouza Gopinathpur, JL No.85. Meanwhile, Land & Land
Revenue Department has put up a demand notice for land revenue, which is yet to be deposited by the
Durgapur Projects Ltd.
The following developments w.r.t Trans-Damodar Coal Mine at Barjora, Bankura is
reported to the Shareholders of the Company:
a) YES Bank Ltd., the banker of MDO has renewed the Bank Guarantee (BG no. 190BG07191770001) of
Rs. 100 Crore on 25.06.2020 valid upto 25.10.2020 with claim period upto 25.10.2021 and the same has thbeen submitted by MDO on 10.07.2020. MDO has been instructed to renew the BG before 25 October
2020 as per terms and conditions of CMSA.
b) Mine Closure Plan for Trans Damodar Coal Mine has been approved by Ministry of Coal, Govt. of India
on 10.07.2019 vide order no. 34011/3/2019-CPAM. In this regard DPL has deposited an amount of
13
Rs.71,18,678/- towards first installment of Mine Closure of the coal mine to the Escrow Account on
behalf of MDO. The said amount will be realized from the bills of Mining charge payable to MDO.
c) DPL deposited an amount of Rs. 42,23,284/- on 26.08.2019 to the dedicated account of BDO, Barjora for
releasing crop compensation for the period of four years (FY 2015-16 to FY 2018-19) for 32.994 acre of
affected land due to sliding of OB materials and water logging. As per utilization report of BDO, Barjora, stRs.6,52,101/- has been disbursed to the land owners till 31 August 2020. The matter of Crop
thCompensation was further discussed in the District Committee Meeting held on 10 Sept 2020 and rate
of crop compensation was further revised to Rs.64,000/- per acre per year for five years for FY 2015-
2020. Total cost involvement will be Rs.1,05,58,210/- as per the revised rate. BDO Barjora has submitted
a demand note of Rs.50,98,657/- for deposition in addition to previous fund.
d) Rehabilitation and Resettlement Packages for the projects affected people (PAP) of Trans Damodar
Coal Mine was approved in the District Committee Meeting, chaired by the District Magistrate, Bankura
held on 04.09.2019.
e) As per Clause no. 25.1 of CMSA, M/s Indian Mine Planners and Consultant has been selected and
appointed as Independent Engineer through e-tendering process for the period of three years. The LOA
has been issued on 22.06.2020. The total cost involvement for three years is Rs. 38,23,200/- including
GST.MDO will bear 50% of the total cost as per CMSA and the said amount will be realized from the bills
of Mining Charge payable to MDO.
f) DPL owned 12.48 acre of land along with vesting order from MOC and 367.70 acre (282.46 acre + 85.24
acre) from WBMDTCL. Further, DPL has purchased 3.7498 acre from raiyats and the partners of ex-
MDO as per decided rate per acre (through District Committee) with agreed terms for payment of
difference amount for any revision of rate in future. However, DPL has to purchase more than 580 acre of
land from raiyats and partners of ex-MDO.
g) DPL has given “In-principal Approval” to West Bengal Highway Development Corporation Limited
(WBHDCL) vide letter dated 04.12.2019 for bearing the total expenditure of the construction work along
with the cost of DPR for shifting of a portion of SH-9 passing through mine boundary. Representatives of
WBHDCL have visited the coal mine on 04.03.2020 made survey of the shifting project. On the same day
representatives of PHE, GoWB and WBSEDCL has also visited the coal mine to inspect the shifting job
of water pipe line and 11 kv overhead electrical line respectively. Accordingly, WBHDCL has engaged
M/s Xplorer Consultancy Pvt Ltd, the Successful Bidder for preparation of DPR with a total cost
involvement of Rs.18,40,800/- including GST and submitted a fund request vide Memo no.
1049/WBHDCL dated 01.10.2020 as consultancy fees for preparation of DPR amounting
Rs.18,40,800/- (Rupees Eighteen lakh forty thousand and eight hundred) only in favour of West Bengal
Highway Development Corporation Limited.
h) DPL has terminated the service contract of WBMDTCL as Advisor-cum-Mining Agent of DPL for its Trans
Damodar Coal Mine w.e.f. 01.05.2020 as per advice of the Board of DPL held on 27.04.2020.
i) DPL has engaged Sri A.K. Sengupta as General Manager (Mining), Sri S.P. Dutta Majumdar as Advisor
(Mining), Sri K. Chakraborty as Agent, Sri P. Banerjee as Mine Manager, Sri D. Mandal as Asst. Mine
Manager, Sri S. Ghosh as Mine surveyor.
14
j) 446 ex-employees of ex-MDO of the coal mine have been enrolled by MDO in its payroll w.e.f.
01.06.2020. Accordingly, MDO has disbursed monthly salary of their employees w.e.f. June 2020.
k) DPL submitted a proposal to the Department of Power, Govt. of WB for reimbursement of salary of ex-
employees of ex-MDO from January 2020 to May 2020 as per request of MDO. Accordingly, approval of
GoWB has been received through Dept of Power for disbursement of salary to ex-employees from
January to May 2020. DPL have already disbursed the salaries to the ex-employees through WBMDTCL
for the month of January 2020 to April 2020 on urgent basis with the approval of MD, DPL. Payment for
the month of May is required to be released.
In terms of the Govt. of West Bengal letters no 09-PO/O/C-
VI/5S-33/15 dated 31.01.2019 WBSEDCL shall purchase total generation quantum of DPL at a pool
power cost of 389 p/kWh of WBPDCL for FY 2018-19 w.e.f 01.01.2019 as an interim measure subject to
the final adjustment of actual pool cost of WBPDCL for FY 2016-17 & FY 2017-18 and pending final tariff
determination by WBERC under section 62 of the EA of 2003. Further in terms of the Govt. of West
Bengal letter no 43(2)-PO/O/C-VI/5S-33/15(Pt.-I) dated 19.06.2019 DPL and WBSEDCL mutually
agreed that the provisional power purchase cost of WBSEDCL from DPL shall be ? 4.07/KWH comprising
capacity charge (? 1.43/KWH) and energy charge (? 2.64/KWH) w.e.f. 01.06.2019 as an interim measure
subject to further revision from time to time mutually agreed by and between DPL & WBSEDCL till tariff
determination for DPL by WBERC under section 62 of the EA of 2003.
PPA in this regard is under process of
finalization. Both the parties agreed that the tariffs for supply of electricity to WBSEDCL from the
generating stations of DPL under this agreement shall be determined by the Commission from time to
time. The tariffs for supply of electricity from this generating station of DPL to WBSEDCL under this
agreement shall be determined in accordance with the Tariff Regulation. Jointly signed PPA shall be
placed by WBSEDCL to WBERC for approval.
As on date, a considerable part of
the work force became surplus. At the same time, the company, as a matter of policy, did not go for any
recruitment for several years except in unavoidable situation. There has also been reduction in workforce
over the years due to separation on account of retirement, resignation or otherwise. The existing system
of deputation of employees under WBSEDCL and WBSETCL is continuing. However, the employees
shall be utilized by WBSEDCL and WBSETCL within 100 Kms of radius. Regarding the redeployment of
COGP employees under different Govt Offices, the matter has been taken up with respective
Departments. We are yet to receive any communication from their end.
The number of regular employees as on 31.3.2020 was 2326 consisting of 584
Officers and 1742 staff & workers as against 2507 as on 31.3.2019 comprising 466 officers and 2041 staff &
workers. There had been no fresh induction during the year. Further, total number of employees separated
from the Company on account of superannuation, resignation and death during 2019-20 was 201.
Industrial harmony had been maintained during the year with support and co-
operation of Unions and Associations. Your Directors expect that it would be so maintained in the days to
come and with the concerted support of all concerned the challenges ahead could be met.
11.0: Tariff and Consumer profile:
11.1: Tariff for sale of power to WBSEDCL :
11.2: Status of PPA for purchase of power by WBSEDCL from DPL:
12. Human Resources, Personnel & Welfare and Industrial Relations:
12.1: Employees Strength:
12.3: Industrial Relation:
15
12.4: Safety:
12.5: Training:
12.6: Township:
13.0: Corporate Social Responsibility:
14.0: Other Information:
14.1: Disposal of Unit No.6 of DPPS:
15.0: The Year Ahead :
The Safety Department takes care of the safety measures to provide safe and risk free work
environment to the employees including that for the workers engaged by Contractors and also to ensure
compliance of safety requirements as per statutory requirements. In order to bring safety awareness
amongst all categories of employees, every year 'National Safety Day' is observed to disseminate safety
awareness amongst all classes of employees including workmen engaged by Contractors. Classes for
Officers in general awareness on Safety, disaster management were held during the year under review.
There is a Training Department to arrange Training Programmes for employees of the
Company throughout the year. During the year 2019-20 also training was imparted to various categories
of employees organized by other Institutions as well as in-house. The Company also provides
opportunity for training of the students undergoing the courses like Graduation in Engineering and other
professional courses according to the prescribed guidelines of those Institutes. During the year 2019-20,
1233 students were provided vocational training in the Company.
The Company has its own township with residential units of various categories to provide
accommodation to its employees. There are basic civic facilities like Hospital, shopping centers,
Schools, Clubs etc in the Township which is spread over three Zones.
DPL comes under the relevant provisions of the Companies Act,
2013 for constitution of Corporate Social Responsibility Committee. Accordingly, the Board has
constituted a Corporate Social Responsibility (CSR) Committee with required number of Directors and a
Corporate Social Responsibility Policy has been framed and adopted by the CSR Committee of
Directors though due to financial loss the Company is not under mandatory obligation to spend any
money for this purpose. However, as a part of Community and Welfare Services the Company extended
financial and other assistance through various means within its ability and resources to Schools, Clubs
and Social Organizations mostly located within the Company's Township.
W.O bearing no.PUR/CORP/60/19-20/291 dated 19.06.2020 in
favour of m-junction Services Ltd has been issued w.r.t valuation of Unit No.6, DPPS and COGP. The
duration of the contract is 18 months from the date of Work Order starting from valuation to its ultimate
disposal.
It is expected, upon completion of Organizational and Financial Restructuring of the
Company, the situation would brighten and the future business of the Company as a Wholly Owned
Subsidiary Company of WBPDCL will improve.
Sd/-(Shri S.Suresh Kumar, IAS)
Chairman
Dated:27.11.2020
16
D. DUTT & CO.
Company Secretaries
Swastic Centre, 3rd Floor, Room No. 3EP-8 Chowringhee Square, Kolkata - 700 069( : (033) 2213-5482, : : (033) 2248-5482
È: 94330 35482, 9831110275e-mail : [email protected]
Annexure - II
Form No. MR - 3
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2020[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
ToThe MembersThe Durgapur Projects Limited
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the
adherence to good corporate practices by The Durgapur Projects Limited (hereinafter called ' the Company')
having CIN : U40102WB1961SG025250. Secretarial Audit was Conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts / statutory compliance and expressing our opinion
thereon.
Based on our verification of the Durgapur Projects Limited's books papers, minute books, forms and returns
filed and other records maintained by the Company and also the information provied by the Company, its
officers, agents and authorized representatives during the conduct of secretarial audit, we hereby report that
stin our opinion, the Company has, during the audit period covering the financial year ended on 31 March,
2020 subject to our observations made below, complied with the statutory provisions listed hereunder and
also that the company has proper Board processes and compliance mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter.
We have examined the books, papers, minute books, forms and returns filed and other records maintained
stby the Company for the financial year ended on 31 March, 2020 according to the provisions of :
(i) The Companies Act, 2013 (the Act) and the Rules made there under :
(ii) Following other laws, as identified and confirmed by the management, as specifically applicable to the
company:
?Mines Act, 1952 and Rules / Regulations made there under :
?Electricity Act, 2003
we have also examined compliance with the applicable clauses of Secretarial Standards issued by the
Institute of Company Secretaries of India and approved by the Central Government under Section 118 (10) of
the Companies Act, 2013.
SECRETARIAL AUDIT REPORT
Date : .................... 14.08.2020
17
D. DUTT & CO.
Company Secretaries Continuation Sheet No.
The management has made written representation and we have also checked that the Company being an unlisted
Public Limited Company the Following Acts. Regulations, Guidelines, Agreements etc. as specified in the
prescribed Form MR-3 were not applicable :
i) Foreign Exchange Managements Act, 1999 and the rules and regulations made there under to the extent
applicable for Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings.
ii) The Securities Contracts (Regulation) Act, 1956, ('SCRA') and the rules made there under;
iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under.
iv) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act,
1992 ('SEBI Act') :
a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
c) The Securities and Exchange Board of India (Issue off Capital and Disclosure Requirements)
Regulations, 2018;
d) The Securities and Exchange Board of India (Employee Stock Option Scheme nd Employee Stock
Purchase Scheme) Guidelines, 1999 and / or The Securities and Exchange Board of India (Share Based
Employee Benefits) Regulations, 2014;
e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents)
Regulations, 1993 regarding the Companies Act and Dealing with client;
g) The Seurities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, and
h) The Securities and Exchange Board of India (Buybak of Securities Regulations, 2018;
v) Listing Agreements with Stock Exchanges read with the securities and Exchange Board of India (Listing
Obligations and Disclosure Requirement) Regulations, 2015. During the year under review the Company has
complied with the provisions of the Acts, Rules Regulations , Guidelines etc. mentioned above and has
generally adhered to the Secretarial standards, except that :
– Only three meetings of the Board of Directors were convened and held during the financial year contrary to the
requirements of Section 173(1) of the Act;
– The Company is having paid - up equity share capital exceeding Rs. 10 Crore, but does not have a whole -
time Company Secretary contrary to the requirements of Rule 8A off the companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014.
18
– Text of Resolutions passed by circulation by the Board of Directors have not been recorded in the Minutes of
the Meetings. Contrary to the requirements of Secretarial standards SS - 1
– Appointment of Independent Directors have not been approved at the meeting of the shareholders as
required by para IV(2) of schedule IV to the Act, but noted by them.
In respect of other laws specifically applicable to the Company we have broadly reviewed the same, without
carrying out detailed examination of all the relevant records / documents with a view to determine accuracy
and completeness of periodical compliance. During the course of our audit, we have relied on information
placed before the Board at its meetings and written representations made by the management in this regard
and the reporting is limited to that extent.
a) The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-
Executive Directors [ Government Nominee Directors ] and Independent directors [ appointed by
Government of West Bengal ]. Subject to our observations above relating to appointment of independent
directors, the changes in the composition of the Board of Directors that took place during the financial year
under review were carried out in compliance with the provisions of the Act.
b) Adequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance for meetings other that those held at shorter notices and a
system exists for seeking and obtaining further information and clarifications on the agenda items the
meeting and for meaningful participation at the meeting.
c) Majority decision is carried through while the dissenting members' views are captured and recorded as part
of the minutes.
that based on review of compliance mechanism established by the Company, we are of
the opinion that, there are adequate systems and processes in place in the Company which is
commensurate with the size and operations of the company to monitor and ensure compliance with
applicable laws, rules, regulations and guidelines.
the Company has appropriately responded to notices for show causes,
claims, dues demands, fines penalties etc. received from various statutory / regulatory authorities and
initiated actions for corrective measures, where necessary. The independent directors at their separate
meeting have observed that there should be improvement in implementation of corrective measures
suggested by various Committee of Directors from time to time.
the following specific events / actions having a major bearing on the Company's
affairs in pursuance of the above referred laws, rules, regulations guidelines, standards etc. referred to
above :
a) Article 2 of the Articles of Association defines the company as a Private Limited Company whereas the Class
of the Company is 'Public Limited' as per Company Master Data on MCA Portal. Further Article 100 of the
Articles of Association stipulates that the number of directors shall not be less that Two. The combined effect
We further report that :
We further report
We have been informed that
We further report that
D. DUTT & CO.
Company Secretaries Continuation Sheet No.
19
of Article 2 read with Article 100 resembles the Company as 'Private Limited Company' only. We have,
however, been served with a written opinion of a Practicing Company Secretary dated 19.05.2014 obtained by
the Company to the effect that since ' the Company opted to continue as a 'Public Company' and has been
continuing as such, it is a Public Company and a Government Company as well as per the Companies Act,
2013 and all the provisions of the Companies Act, 2013 and the Rules made thereunder or as amended from
time to time, as applicable to Public Companies will be applicable to this Company.'
b) A decision was taken by the Government of West Bengal for restructuring of the Company vide Notification No.
319-PO/O/C/C-IV/1E-60/13 (Part - V A) dated 08.12.2017. In continuation of the said notification issued by the
State Government, the Department of Power & NES, Government of West Bengal, issued another notification
bearing No. 328 /PO/O/C-IV /1E - 60/13 (Pt. V A) dated 26.12.2018 whereupon w.e.f. 01.01.2019 the entire
electricity transmission activities along with all associated assets and liabilities would be transferred to
WBSETCL and the entire electricity distribution activities along with all associated assets and liabilities would
the transferred to WBSEDCL. These transfers were to be effected by way of slump Transaction Agreements.
Accordingly, the Slump Transaction Agreements with WBSETCL. These transfers were to be effected by way
of Slump Transaction Agreements. Accordingly, the Slump Transaction Agreements with WBSETCL had
been executed on 11.04.2019 and that with WBSEDCL on 30.09.2019 in accordance with the approval of
Members accorded by Special Resolution under section 180 (1) (a) of the Companies Act, 2013 at its Annual
General Meeting held on 21.12.2018.
Place : Kolkata For D. Dutt & Co
Company SecretariesUNIQUE CODE NUMBER : 12001WB209400
Dated : 14.08.2020
(DEBABRATA DUTT)
Proprietor
FCS - 5401
C.P. No. : 3824
UDIN No. : F005401B000582725
This report is to be read with our letter of even date which is annexed as Annexure- A and forms an integral part of this report
20
D. DUTT & CO.
Company Secretaries Continuation Sheet No.
Annexure - ATo,The MembersThe Durgapur Projects Limited
Our Secretarial Audit Report for the Financial year ended 31st March, 2020 of even date is to be read along with this letter.
1. It is the responsibility of the management of the Company to maintain proper secretarial records, devise
proper systems to endure compliance with the provisions of all Corporate and other applicable laws, rules,
regulations standards and also to ensure that the systems are adequate and operate effectively.
2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by
the Company with respect to secretarial compliance based on our audit.
3. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records.
4. We believe that the audit evidence and information obtained from the Company's management is is adequate
and appropriate for us to provide us a basis of our opinion.
5. We have not verified the correctness and appropriateness of financial records, books of accounts, compliance
of applicable direct and indirect tax laws of the company.
6. Wherever required, we have obtained the management representation about the compliance of laws, rules,
regulations, guidelines, standards and happening of events etc.
7. The Secretarial Audit report is neither and assurance as to the future viability of the Company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the company.
8. This report has been prepared upon receipt / exchange of requisite information and documents mostly through
electronic mail during the periods of sporadic lockdown due to Covid-19 pndemic as notified by Government of
West Bengal.
9. Due to partial and sporadic lockdown and consequent restrictions on movement we could not verify all the
original records of minutes of meetings of the Board of Directors and its various Committees and / or other
relevant papers.
Place : Kolkat For D. Dutt & Co.Company Secretaries
UNIQUE CODE NUMBER : 12001WB209400
Date : 14.08.2020
(DEBABRATA DUTT)Proprietor
FCS - 5401C.P.No. 3824
UDIN No. : F005401B000582725
Management's Responsibility :
Auditor's Responsibility :
Disclaimer :
21
Comments of the Secretarial Auditor Replies to the CommentsSl.No.
1. Only three meetings of the Board of
Directors were convened and held during
the financial year contrary to the
requirements of section 173(1) of the Act.
The Company is having a paid up equity
share capital exceeding Rs. 10 Crore but
does not have a whole-time Company
Secretary Contrary to the requirements of
Rule 8A of the Companies (Appointment
and Remuneration of Managerial
Personnel) Rules, 2014.
Text of Resolutions passed by circulation
by the Board off Directors has not been
recorded in the Minutes of the Meetings,
contrary to the requirements of
Secretarial Standards SS - 1.
Appointment of Independent Directors
have not been approved at the meeting of
the shareholders as required by Para
IV(2) of schedule IV to the Act, but noted
by them.
It was decided to convene a Board meeting on
25.03.2020 for which Notice was also given to all the
members of the Board of Directors. However, due to
sudden Nationwide Lockdown announced by the
Hon'ble Prime Minister of India w.e.f. intervening
night 24th / 25th of March, 2020 the meeting could
not be held and was postponed.
DPL in order to appoint a whole time Company
Secretary has published an advertisement in reputed
dailies on 26.09.2019. However, since the response
to the said advertisement was poor, another
advertisement for selection of whole time Company
Secretary was published in reputed dailies on
28.01.2020. However, subsequent Lockdown
announced by the Government of India slowed down
the process. The Company is in the process of short
listing of candidates and the candidates would be
called for interview very soon.
It is submitted that the text of Explanatory notes and
relevant Resolution passed by circulation by the
Board of Directors of DPL are placed for ratification in
the subsequent meeting of the Board.
However, as advised, henceforth for better proedural
compliance, the text of Resolutions passed by
circulation by the Board would be recorded in the
minutes also from subsequent meetings.
The Independent Directors are appointed by the
Hon'ble Governor of WB through Dept. of Power,
which along with his nominees hold the entire share
capital of DPL. Hence the appointment of
Independent Directors is being placed for noting of
the Shareholders of DPL at the AGM wherein the
Shareholders are the Authorised Representative of
Hon'ble Governor of WB and his nominees.However, as advised, henceforth the word 'approved'
would be used instead of 'noting ' from subsequent
AGM.
2.
3.
4.
COMMENTS OF THE SECRETARIAL AUDITOR FOR THE FY 2019-2020 AND REPLIES THERETO
22
ANNEXURE-III
The Company endeavors to ensure good corporate practices based on transparency, fairness,
professionalism and accountability to build confidence among all stakeholders and improving performance with
sustainable growth and profitability. A brief report on Corporate Governance is given below:
The composition of Board of Directors of the company during the year under report was as under:
i) Shri Sunil Kumar Gupta, I.A.S, Additional Chief Secretary, Department of Power, Govt. of West
Bengal resigned from the Chairmanship of the Company w.e.f 06.12.2019 consequent upon his
transfer of Department of Agriculture, GoWB.
ii) Shri Suresh Kumar Sepuri, IAS, Additional Chief Secretary, Department of Power, Govt of West
Bengal was appointed as the Chairman, DPL w.e.f 20.01.2020.
iii) Shri Ashis Saha, Managing Director w.e.f. 01.09.2018.[ Expired on 19.09.2020]
iv) Shri Goutam Biswas, Director w.e.f 01.11.2018.[ Appointed as MD, DPL w.e.f 06.10.2020]
v) Shri Rajesh Pandey, I.A.S, CMD WBSEDCL and Director, DPL, w.e.f. 29.01.2016 to 28.06.2019
vi) Shri Santanu Basu, IAS & CMD, WBSEDCL was appointed as Director of DPL w.e.f 09.07.2019.
vii) Dr. A.N.Biswas, IAS, Director & Commissioner, Department of Power & NES, Govt. of West Bengal
has been appointed as a Director w.e.f 21.06.2017 who ceased his Office vide resignation dated
09.04.2020 consequent upon his transfer to Dept. of Education, GoWB.
viii) Smt Saswati Banerjee, I.A.S (Retd), was appointed as woman Director and Independent Director
w.e.f. 21.06.2017. After completion of her tenure, she was re-appointed for a further period of one
year w.e.f 28.07.2020 subject to validity of registration with IICA beyond February, 2021.
ix) Shri Pranab Kumar Das Sharma, former Chief Engineer WBSETCL, has been appointed as
Independent Director w.e.f. 06.05.2017. After completion of his tenure, he was re-appointed for a
further period of one year w.e.f 28.07.2020 subject to validity of registration with IICA beyond
February, 2021 .
x) Shri Srikumar Banerjee was appointed as Director of DPL w.e.f 01.06.2019.
xi) Dr. P.B.Salim, IAS & CMD, WBPDCL was appointed as Government representative in every Board
meeting of DPL w.e.f 09.07.2019.
xii) Shri Saurabh Majumdar, Dy. Financial Advisor & E.O.Dy.Secretary, Dept of Power, GoWB was
appointed as Director of DPL w.e.f 25.06.2020 pursuant to Notification No.245-PO/O/C-IV/3E-
05/2002 dated 25.06.2020.
The Key Managerial Personnel in the company are as under:
i) Shri Ashis Saha - Managing Director w .e. f 01.09.2018 to 18.09.2020.
ii) Shri P.K Mitra - GM (F&A) & CFO upto 14.11.2019. Advisor (F&A) & CFO w.e.f 15.11.2019
iii) Shri Goutam Biswas - Managing Director w.e.f 06.10.2020
Composition of Board and Report on Corporate Governance
1: Composition of Board of Directors during the Year under Report and subsequent changes thereof:
2. Details of Key Managerial Personnel:
23
Name of the Directors Meeting held during Meetings Remarks
Relevant period attended
Shri S.K Gupta I.A.S 3 2 Ceased as Chairman w.e.f Chairman 06.12.2019
Shri Suresh Kumar Sepuri, IAS, 3 0 Appointed as Chairman w.e.f Chairman 20.01.2020.
ShriAshis Saha 3 3 Appointed as MD w.e.fManaging Director 01.09.2018
Shri. Rajesh Pandey, I.A.S 3 0 Ceased to be the Director w.e.fDirector 28.06.2019
Shri Santanu Basu, IAS, Director 3 2 Appointed w.e.f 09.07.2019
Smt Saswati Banerjee, IAS(Retd) 3 2 Appointed w.e.f 21.06.2017Director
Dr. A.N Biswas, IAS, Director 3 3 Ceased as Director w.e.f
09.04.2020
Shri Goutam Biswas, Director 3 3 Appointed as Director w.e.f
01.11.2018
Shri Pranab Kumar Dassharma, 3 3 Appointed on 06.05.2017Director
Shri Srikumar Banerjee, Director 3 3 Appointed as Director w.e.f
01.06.2019.
Three Committees of Directors, viz., Audit Committee, Procurement committee and Operation Committee were
constituted or re-constituted as the case may be, by the Board for better monitoring of the activities of the
Company, corporate governance, and improvement in organizational efficiency, transparency and internal
control. DPL also have CSR Committee and Nomination and Remuneration Committee of Directors also. The
Audit Committee was also advised to function taking into consideration the provisions of the new Companies
Act, 2013. One Independent Directors Committee comprising only independent directors has been constituted
for complying with the Clause 2.3 of the Secretarial Standard-1 issued by the Institute of Company Secretaries
of India (ICSI). The Composition of the said six Committees, number of meetings held during 2019-20 and the
number of meetings attended by the members of the Committees are furnished below:
Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20
1. Sri Srikumar Banerjee, Director & Chairman 5 5
2. Shri Pranab Kumar Dassharma, Director 5 5
3. Smt. Saswati Banerjee, Director 5 5
As per the Companies Act, 2013, the Audit Committee of Directors should comprise of independent Directors in
majority, Audit Committee of Directors has been reconstituted accordingly, and hence the said Committee has
adequate representation of the independent directors.
4: Committees of the Board:
a) The Audit Committee of Directors:
3: Meetings of the Board of Directors:
The Board meetings are held regularly. During the year 2019-20 all together 3(Three) meetings were held. A
statement is furnished below indicating the number of meetings held during the year 2019-20 and the number of
meetings attended by the said Directors:
24
b) The Procurement Committee :
c. Independent Directors :
d) Operation Committee :
e) Nomination & Remuneration Committee :
f) CSR Committee:
6. Directorship in other Company as Nominee of the Durgapur Projects Limited:
Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20
1. Shri Ashis Saha -Managing Director & 1 1Chairman w. e. f. 01.09.2018
2. Dr. A.N.Biswas, IAS & Director 1 1
3. Shri Pranab Kumar Dassharma, Director 1 1
Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20
1. Smt.Saswati Banerjee, Director & Chairman 1 1
2. Shri Srikumar Banerjee, Director 1 1
3. Shri Pranab Kumar Dassharma, Director 1 1
Sl. Name of the MemberNo.
1. Shri Ashis Saha - Managing Director & Chairman
2. Dr. A. N. Biswas, Director
3. Shri Pranab Kumar Dassharma, Director
Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20
1. Shri Srikumar Banerjee, Director 3 3
2. Dr. A.N. Biswas, IAS, Director 3 3
3. Shri Pranab Kumar Das Sharma, Director 3 3
4. Smt. Saswati Banerjee, Director 3 3
Sl. Name of the Member No. Meeting held No. Meetings attendedNo. during 2019-20 during 2019-20
1. Shri Srikumar Banerjee, Director Nil Nil
2. Shri Ashis Saha, Managing Director Nil Nil
3. Smt. Saswati Banerjee, Director Nil Nil
There had been no meeting of the Operation Committee of Directors during the period under review.
The Managing Director used to be the nominee Director of DPL to the Board of Directors of Bengal Emta Coal
Mines Limited (BECML) in which the Company had invested for 6% of the total paid up share capital. In view of the
cessation of the mining operation by the said Joint Venture Company after 31.03.2015 due to de-allocation of coal
25
blocks by the Hon'ble Supreme Court of India, the then nominee of DPL, Shri Mrinal Kanti Mitra, ex-Managing
Director, DPL, was directed by the Board of Directors of the company to submit resignation from the Board of
Directors of BECML with effect from 24.9.2015. Accordingly, resigned from the Board of BECML and also
submitted “Form No. DIR-11” to the Registrar of Companies confirming his resignation from the Board of
Bengal Emta Coal Mines Limited from that date.
Thereafter, DPL has not sent any nominee Director to the Board of BECML even after joining of Shri Ashis Saha
as the Managing Director of the company.
Your Company being a State Government Company has been exempted from complying with this requirement
vide Notification dated 05.06.2015 issued by the Ministry of Corporate Affairs (MCA), Government of India
whereby certain exemption from complying with certain provisions of the Companies Act, 2013 were granted to
the Government Companies.
The Secretarial Auditor of the company in its Annual Audit Report for the FY 2019-20 had stated that “there are
adequate systems and processes in the Company commensurate with the size and operations of the company
to monitor and ensure compliance with applicable laws, rules, regulations and guidelines except for few
observations.” The replies to such observations have been given to the Secretarial Auditor. Any non
compliance or an area which requires urgent attention for necessary action is brought to the notice of the Board
wherever necessary.
The Board constituted CSR Committee of Directors comprising of Smt Saswati Banerjee, IAS (Retd), Shri
Srikumar Banerjee and Shri Ashis Saha. Since DPL has been incurring loss, no amount is to be spent
statutorily for the purpose of CSR. However, CSR Policy has been framed by the CSR Committee of Directors.
Sd/-
(Shri S.Suresh Kumar, IAS)
Chairman
Dated: 27.11.2020
7. Statement indicating the manner in which Formal Annual Evaluation has been made by the Board
of its own performance, its Directors, and that of its Committees:
8. Compliance Certificate:
9. CSR Committee:
26
=+FÜFFaáFÜF ÒÍFFÎF ÛFùFáFW&FF=+FÞ(áFW&FFÑFÞU‡FF II)ÑFPè˜FÛF ÙFk;FFáF
OFFICE OF THEPRINCIPAL ACCOUNTANT GENERAL
(Audit - II)West Bengal
No. : OA (ESA-II) Accounts / DPL / 2019-20 / 498Date : 24.12.2020
To,The Managing Director,The Durgapur Projects Limited,Administrative BuildingDurgapur 713201
Sub : Comments of the Comptroller and Auditor General of India under Section 143(6)(b) of the
Companies Act, 2013 on the Financial Statements of the Durgapur Projects Limited for the year ended 31
March 2020
Sir,
I am to forward herewith the Comments of the Comptroller and Auditor General of India Under
Section 143(6) (b) of the Companies Act, 2013 on the Financial Statements of The Durgapur Projects
Limited for the year ended 31 March 2020.
Yours Faithfully,
Encl. As stated Deputy Accountant General (ESA -II)
West Bengal
õFU. ¡FU. EX. =+ÛÑáFWƒõF, °U. J×+. ÙáFFc=+, õFFá© áFW=+, =+XáF=+F¶FF - 700 064
27
COMMENTS OF THE COMTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION
143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF THE
DURGAPUR PROJECTS LIMITED FOR THE YEAR ENDED 31 MARCH 2020.
The preparation of Financial statements of the Durgapur Projects Limited for the year ended 31
March 2020, in accordance with the financial reporting framework prescribed under the Companies
Act, 2013 (Act), is the responsibility of the Management of the Company., The Statutory auditors
appointed by the Comptroller and Auditor General of India under Section 139(5) of the Act are
responsible for expressing opinion on the financial statements under section 143 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 27.11.2020.
I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary
audit of the financial statements of The Durgapur Projects Limited for the year ended 31 March 2020
under section 143(6) (a) of the Act. 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.
On the basis of my supplementary audit nothing significant has come to my knowledge which
would give rise to any comment upon or supplement to statutory auditors' report under section
143(6)(b) of the Act.
For and on the behalf of the
Comptroller & Auditor General of India
Dated at Kolkata (Reena Saha)24 Dec. 2020 Principal Accountant General (Audit-II)
West Bengal
28
M. C. Bhandari & Co.Chartered Accountants
4, Synagogue StreetSuite # 205, 2nd FloorKolkata - 700 001Phone : 033 2242 6077E: [email protected]@mcb.net.inweb : mcb.net.in
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Statements
Opinion
Basis for Opinion
Material Uncertainty related to Going Concern
ToThe MembersThe Durgapur Projects Limited
We have audited the financial statements of The Durgapur Projects Limited ('the company'), which
comprises the Balance sheet as at 31st March, 2020, and the statement or profit and loss, and statement of
cash flows for the year then ended, and notes to the financial statements, including summary of significant
accounting policies and other explanatory information (' the statement').
In our opinion and to the best of our information and according to the explanations give to us, the aforesaid
financial statements along with the notes thereon, give the information required by the companies act, 2013
in the manner so required and give a true and fair fiew in conformity with the accounting principles generally
accepted in India, of the state of affairs (financial position) of the company as at 31st March, 2020, and its
losses (financial performance) and its cash flows for the year ended on that date.
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs)
specified under section 143(10) of the companies Act, 2013. Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of he Company in accordance with the code of Ethics issued by the Institute of
Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Companies Act, 2013 and the Rules thereunder, and we
have fulfilled our other ethical responsibilities in accordance with these requirements and the code of Ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
We draw attention to Note no. 23B(3) (i) of the Financial Statements which indicates that the company's net
worth has got eroded as of March 31, 2020 and the company;s current liabilities exceeded its current assets
and negative cash flows along with ensuing commitment for repayment of Long Term loans. These
conditions, along with other matters as stated in said note, indicate that a material uncertainty exists that
may cast doubt on the company's ability to continue as a going concern.
Our report is not modified in respect of this matter.
29
Emphasis of Matter
Without modifying our opinion, attention is drawn to following matters :-
a) Reference is invited to Note no. 23B3 9ii) to the financial statements, wherein the company has initiated a
restructuring process, whereby the transmission and distribution business along with its related assets,
liabilities & claims of the Company have been transferred at book value on slump sale basis to WBSETCL &
WBSEDCL ( transferee companies) by way of slump sale transaction agreement with transferee
companies with effect from 1st January, 2019
b) Reference is invited to Note No. 20(i), the company has credited Rs. 15318.84 lakhs (FY 2018-19 Rs.
17422.00 Lakhs) to the Profit and Loss account and a balance of regulatory assets in respect of financial
years from 2014-15 to 2018-19 amounting to Rs. 74765.84 lakhs (FY 2018-19 Rs. 59447.00 lakhs), as
shown under exceptional items and Regulatory Assets respectively and realisable through Regulatory
Mechanism as per regulation off West Bengal Electricity Regulatory Commission (WBERC). However, the
relevant orders facilitating the credit have not yet been received from WBERC. In case of any variations in
the order of WRERC as against the amount estimated by the Company, there may be change in the
balances of accumulated losses and regulatory assets, but effect not ascertained.
c) Reference is invited to Note No. 3(a) (ii) to the financial statements, wherein pending finalisation of
repayment terms the loans from Government of West Bengal amounting to Rs. 39169.32 lakhs and from
Central Electricity Authority amounting to Rs. 1181.00 lakhs have been considered to be of long term in
nature.
d) Reference is invited to Note No. 2(ii) and 10(c) (i) to the financial Statements, wherein compliance with
regulation No. 48 on Terms and conditions of Tariff Order, 2011 issued by West Bengal Electricity
Regulatory Commission, the Company has created Reserve for Unforeseen Exigencies amounting to Rs.
9002.75 lakhs against which investment amounting to Rs. 728.97 lakhs only has been made in Term
deposit with Banks.
e) Reference in invited to Note No. 10 (a) (ii) to the financial statements, wherein pending physical verification
of stores and spares, the discrepancy between book balance and physical stock, if any, has not been
identified and adjusted in the Financial statements, whose effect is not ascertained.
f) Reference is invited to Note No. 4 (b) (ii) and 23B (3) (iii) to financial statements, Balances of Coal
Companies, Security Deposit, Advance received / paid, claims recoverable, Advance to contractors /
suppliers / others, Trade Receivable, Trade payables are subject to the exercise of reconciliation and
confirmation. Necessary accounting adjustment, required if any, will be post completion of the said
exercise.
g) As more fully described in Note No. 24 to the Statement, to assess the recover ability of certain assets, the
Company has considered internal and external information up to the date of this report in respect of the
current indicators of future economic conditions consequent to the global health pandemic COVID - 19.
h) Reference is invited to Note 23B (6) in respect of un - reconciled balances of WBSEDCL and consequently
was not netted off he debit balance with liabilities.
M. C. Bhandari & Co.Chartered Accountants
30
M. C. Bhandari & Co. Chartered Accountants
Other Information
Responsibilities of Management and Those Charged with Governance for the Financial Statements.
Auditor's Responsibilities for the Audit of the Financial Statements
The Company's management and Board of Directors are responsible for the other information. The other
information comprises the information the information included in the Directors' report Management
Discussion & Analysis etc, but does not include the financial statements and our auditor's report thereson.
Such other information's are expected to be made available to us after the date of this auditor's report. Our
opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above when it becomes available and , in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
When we read the other information, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to those charge with governance and take appropirate actions necessitate
by the Circumstances and the appllicable laws and regulations.
The Company's Board of Directors is responsible for the matters stated in section 134 (5) of the Companies
Act, 2013 ("the Act|) with respect to the preparation of these financial statements that give a true and fair view of
the financial position, financial performance, and cash flows of the company in accordance with the accounting
principles generally accepted in India, specified under section 133 of the Act. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors is responsible for assessing the Company's ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease
operations or has no realistic alternative but to do so. Board of Directors are also responsible for overseing the
Company's financial reporting process.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee, that an audit conducted in
accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also :
31
?Identity and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may invlove collusion, forgery, intentional omissions,
misrepresentations, o the override or internal control.
?Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances. Under Sectio. 143(3)(i) of the Companies Act, 2013, we are also responsible
for expressing our opinion on whether the company has adequate internal financial controls system in place
and the operating effectiveness of such controls.
?Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
?Conclude on the appropriateness of management's use of the going concern basis, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a going concern. It we conclude that a material
uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may
cause the company to cease to continue as a going concern.
?Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions events in a manner that achieves
fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit. We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our independence, and where applicable related
safeguards.
i) As required by the Companies (Auditor's Report) Order, 2016 ('the Order') issued by the Central Government
of India in terms of Sub - Section (11) of Section 143 of the companies Act, 2013, and on the basis of such
checks of the books and records of the company as we considered appropriate and according to the
information and explanations given to us, we give in 'Annexure A' a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
ii) As required by the section 143 (5) of the Act, we give in ' Annexure B' a statement on the matters specified by
the office of the Principal Accountant General for the Company.
iii) As required by Section 143(3) of the Act, we report that :
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 company so far as it
appears from our examination of those books.
c) The Balance sheet, the statement of Profit and loss and the cash flow statement dealt with by this report are
in agreement with the books of account.
Report on other Legal and Regulatory Requirements
32
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
e) In terms of notification on G. S. R 463 (E) dated 5th June 2015 issued by the Ministry of Corporate Affairs, the
provisions of Section 164 (2) of the Act regarding disqualification of Directors are not applicable to a
Government company.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and
the operating effectiveness of such controls, refer to our separate report in 'Annexure - C'.
g) The matter described under material uncertainty related t Going concern paragraph may have an adverse
effect on the functioning of the company.
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the
companies (Audit and Auditors) Rules, 2014 in our opinion and to the best of our knowledge and belief and
the information and according to the explanations given to us :
i) The company has disclosed the impact of pending litigations on its financial position in its financial
statements Refer Note no. 22 to the financial statements.
ii) The company did not have any long - term contracts including derivative contracts for which there are no
material foreseeable losses.
iii) There were no amounts which were required to be transferred to the investor Education and protection
Fund by the Company.
For M. C. Bhandari & Co.Chartered AcountantsFirm Registration No. 303002E
CA. Neeraj- Jain(Partner)(Membership No. 064393)UDIN 20064393AAAABDU6195
Place: KolkataDate : 27th November, 2020
M. C. Bhandari & Co.Chartered Accountants
33
M. C. Bhandari & Co.Chartered Accountants
Annexure A to the independent Auditor's Report
Referred to in paragraph (i) under the heading '' Report on Other Legal and Regulatory Requirements'' of our Report.
1. a) The Company is maintaining records of Fixed Assets showing particulars but not showing quantitative
details, situation of fixe assets and identification marks which need to be updated in Fixed Assets
Register
b) As informed to us, the fixed Assets in respect of Furniture / fixture and Office equipment only elating to
its Administrative office and Plant Offices have been physically verified by the management and same
is under the process of reconciliation. Pending such reconciliation, discrepancies, if any are not
identified and adjusted. In Our opinion, all he fixed assets should be verified by the management ove a
reasonable period of time.
c) In our opinion and according to the information and explanations given to us, the total area of freehold
land in the possession of the Company as on 31.03.2020 was 2977.585 acres. Out of total Land
measuring 3103.634 acres as on 31.03.2019, 126.049 acres were transferred to WBSEDCL &
WBSECTCL. The land record updation is still in process. Mutation of land measuring 857.16 acres was
completed out of total unmuted land measuring 1067.04 acres. Mutation of balance land at Mouza
Gopinathpur (JL-85) is under process. The leasehold Land as on 31.03.2019 is 4.039 acres, out of
which 3.449 acres were transferred to WBSEDCL. However the relevant lease transfer is pending.
Deeds off conveyance in respect of Land transferred to WBSEDCL and WBSETCL are yet to be
executed.
The deeds of freehold land measuring 36.65 acres have been mortgaged with the lenders and as such
not made available to us for verification.
2. a) During the period under audit, Physical verification of Raw Materials (Coal) only has been conducted by
the management. Inventory of Stores & Spares and finished goods have not been physically verified by
management during the year. Stores and Spares of plants other than Power Plant were last physically
verified on 31st March 2015. Those for Power Plant have been carried out on 31st March 2018.
b) Since Stores & Spares, Finished goods etc remains physically unverified during the year, the
discrepancies, if any, remains unidentified and adjusted.
3. According to the information and explanations given to us, the Company has not granted any loan, secured
or unsecured to companies, firms, limited liability partnerships or other parties covered in the register
required under section 189 of the Companies Act, 2013. Accordingly, Paragraph 3 (iii) (a), (iii) (b) and (iii) (c)
of the Order is not applicable.
4. In our opinion and according to the information and explanations given to us, the company has not given
any loans, made any investments provided any guarantees, and given any security to which the provisions
of section 185 and 186 of the Companies Act, 2013 are applicable.
5. In our opinion and according to the information and explanations given to us, the Company has not
accepted any deposits and accordingly paragraph 3(V) of the Order is not applicable.
7. The maintenance of cost records has been prescribed for Electricity Industry (Power Plant) for this
company by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, We
34
M. C. Bhandari & Co.Chartered Accountants
have broadly reviewed the cost records maintained by the company pursuant to the above rules and we are
of the opinion that prima facie, the prescribed accounts and records are maintained.
7. a) According to information and explanations given to us and the records of the Company examined by us,
the Company is generally regular in depositing undisputed statutory dues including provident fund
Income-Tax, Goods & Service Tax, Duty of Customs and any other statutory dues as applicable, with
the appropriate authorities. The Company has provided liability on account of additional Dearness
Allowance (DA) for the period from January 2014 to August 2019 arises on account of promotion given
to employees under Carrier Progression Scheme (CPS). Since such DA has not been paid,
consequent provident fund liability has not been deposited with relevant authority. Further, an amount
of Rs. 5332.23 lacs on account of interest for payment of electricity duty is pending for payment for
more than six months.According to the information and explanations given to us, no undisputed amount except for interest on
electricity duty as referred above is payable in respect of the aforesaid statutory dues, for a period of six
months from the date they become payable.
b) According to the information and explanations given to us, the following dues of Sales Tax, CST,
Service Tax, Duty of Excise and Value Added Tax have not been deposited by the Company on account
of disputes :(Rs in lakhs)
Name of Nature of Amount Period Forum where pendingstatute Dues
Central Excise Demand of 2620.89 03/2011 to 12/2015 CESTAT, KolkataAct 1944 Excise Duty
Central Excise Demand of 355.26 2013-14 to 2016-17 Commissioner (Appeals)Act 1944 Excise Duty CGST, Siliguri, And
Adjudicating Authority
Service Tax Demand of 694.97 2006-07 to 2016-17 Commissioner (Appeals)Service Tax CGST, Siliguri, and
Adjudicating Authority
Service Tax Demand of 98.53 2005-06 to 2012-13 CESTAT, KolkataService Tax
WB Value Demand of 74.68 2000-01 to 2003-04 Asst. Commissioner of Added Tax Value Added Commercial Taxes
Tax (Appeals) / Durgapur
Central Sales Demand of 36.14 2003-04 Asst. Commissioner of Tax Central Sales Commercial Taxes
Tax (Appeals) / Durgapur
8. In our opinion and according to the information and explanations given to us, the company has not
defaulted in repayment of dues to any financial institutions , bankers, and government or debenture holders
during the year other than the following amounts :
35
M. C. Bhandari & Co.Chartered Accountants
Sl. Name of the Body Nature of Principal Interest PeriodNo. Loan
1. Government of West Bengal Term Loan 39169.32 41809.50 1985 to 2020
2. Central Electricity Authority Term Loan 1181.00 4727.09 1985 to 2020
Total 40350.32 46536.59
9. Based upon the audit procedures performed and the information and explanations given by the management,
the company has not raised any moneys by way o initial public offer or further public offer including debt
instruments . On the basis of review of utilization of funds pertaining to term loans taken by the Company we are
of the opinion that the funds have been applied for the purpose for which they were obtained.
10. According to the information and explanations given to us and as represented by the management and based
on our examination of the books and records of the Company carried out in accordance with the generally
accepted auditing practices in India, we have not come across any instances of fraud by the company or on the
company by its officers orr employees, notices or reported during the year, nor we have been informed of any
such case by the management.
11. According to the information and explanations given to us, requirement o the provisions of section 197 read with
Schedule V to the Companies Act with respect to managerial remuneration is not applicable to Government
company vide Notification dated 5th Jue 2015 of Ministry off corporate affairs.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi
Company. Accordingly, paragraph (xii) off the order is not applicable.
13. According to the information and explanations given to us and based on our examination o the records of the
Company, transactions with the related parties are in compliance with section 188 of the Companies Act, 2013
and the details of such transactions have been disclosed in the financial statements of the Company as required
by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination fo the records of the
company, the company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures during the year. Accordingly, paragraph (xiv) of the Order is not applicable.
15. According to the information and explanations given to us and based on our examination of the records of the
Company, the company has not entered into non-cash transaction with directors or persons connected with
them. Accordingly, paragraph (xv) of the order is not applicable.
16. According to the information and explanations given to us and based on our examination of the records of the
company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act,
1934.
For M. C. Bhandari & Co.Chartered AccountantsFirm registration No. 303002E
CA Neeraj Jain(Partner)(Membership No. 064393)UdIN : 20064393AAAABDO6195
Place : KolkataDate : 27th November, 2020
36
M. C. Bhandari & Co.Chartered Accountants
Annexure B
Referred to in paragraph (ii) under the heading '' Report on Other Legal and Regulatory Requirements'' of ourr Report of even date.
General directions under section 143(5) of the companies act, 2013 for the year ended 31st March 2020.
SlNo.
Questionnaires Remarks
1. Whether the Company has system in place to process all the accounting transactions through IT system ? If yes, the implications of precessing of accounting transactions outside IT system on the integrity of accounts along with the f inancial implications, if any, may be stated.
Presently the company has old information technology application system comprising of different modules / software applicable to different business process, and none of those modules / software are integrated and interfaced, which could potentially result into errors / omissions in financial data processing.However, it is informed that the company has undertaken the implementation of a linked system through new modules of software and same is yet to be commissioned and operationalised.
2. Whether there is any restructurring of an existing loan or cases of walver / write off of debts / loans / interest etc. made by a lender to the company due to the company's inability to repay the loan ? If yes, the financial Impact may be stated.
Whether funds received / receivable for specific schemes from central / state agencies were properly accounted for / utilized as per the terms and conditions ? List the case of deviation
During the period under audit, no restructuring off existing loan or waiver / write off of loans or interest by the lenders has been done for the company.
Pursuant to restructuring scheme, the company has receive an amount of Rs. 134.00 lakhs from Government of West Bengal for fencing around the land of the company. Out of the said amount, no money was utilized during current FY 2019-20
3.
For M. C. Bhandari & Co.Chartered AccountantsFirm registration No. 303002E
CA Neeraj Jain(Partner)(Membership No. 064393)UdIN : 20064393AAAABDO6195
Place : KolkataDate : 27th November, 2020
37
M. C. Bhandari & Co.Chartered Accountants
Sector specific sub-directions under section 143(5) of the Companies Act, 2013 for the year 2019-20
SlNo.
Questionnaires Remarks
1. Adequacy of steps to prevent encroachment of idle land owned by the company may be examined. In case land of the company is encroached, under litigation, not put to use of declared surplus, details may be provied
On the basis of information and explanation given to us we noted that around 44 acres of land are under unauthorized occupation refer not no. 5(a) 9i)
For M. C. Bhandari & Co.Chartered AccountantsFirm registration No. 303002E
CA Neeraj Jain(Partner)(Membership No. 064393)UdIN : 20064393AAAABDO6195
Place : KolkataDate : 27th November, 2020
38
M. C. Bhandari & Co. Chartered Accountants
Annexure C
Referred to in paragraph (iii)(f) under the heading '' Report on Other Legal and Regulatory
Requirements'' of our Report of even date of member, of the Durgapur Projects Limited :-
Management's Responsibility for Internal Financial Controls
Auditors' Responsibility
Meaning of Internal Financial Controls over Financial Reporting
Report on the Internal Financial Controls under Clause (i) of Sub-Section 3 of Section 143 of the
Companies Act, 2013, ('the Act')
We have audited the internal controls over financial reporting of the Durgapur Projects Limited ('the company')
as of 31st March, 2020 in conjunction with our audit of the financial statements of the Company for the year
ended on that date.
The company's management is responsible for establishing and maintaining internal financial controls based on
the internal control over financial reporting criteria established by the company considering the essential
components of internal control stated in the guidance note on audit of internal financial controls over financial
reporting issued by the Institute off Chartered Accountants of India ('ICAI'). These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were operating effectively
for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the
safeguarding of its assets the prevention and detection o frauds and errors, the accuracy and completeness of
the accounting records, and the timely preparation of reliable financial information, as required under the
companies Act, 2013.
Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting
based on our audit. We conducted our audit in accordance with the guidance note on audit off internal financial
controls over financial reporting ( the 'Guidance Note') and the standards on auditing (the 'Standards') issued by
ICAI and deemed to be prescribed under section 143 (10) of the Companies Act, 2013, to the extent applicable to
an audit of internal financial controls. Those standards and the Guidance Note require that we comply with
ethical requirements and plan an perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial
controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls
over financial reporting included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and
operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the
auditor's judgement, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and apporopriate to provide a basis for our
audit opinion on the company's internal financial controls over financial reporting.
A Company's internal financial control over financial reporting is a process designed to provide reasonable
39
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. A company's internal financial control
over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transaction are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of management and directors off the
company; and (iii) provide reasonable assurance regarding prevention or timely election of unauthorized
acquisition , use of disposition of the company's assets that could have a material effect on the financial
statements.
Because of the inherent of internal financial controls over financial reporting, including the possibility of collusion
or impreper management override. Also projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial control over financial reporting
may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
i) The company have documented manual for the different components of the established internal control
but those required updating and implementation commensurate with the present needs and objectives of
financial reporting :
ii) Presently the company has old information technology application system comprising of different
modules / software applicable to different business process, and none of those modules / software are
integrated / interfaced with each other, which could potentially result into errors / omissions in financial
data processing however, the financial effect, if any not ascertained.
iii) Stock of Stores and spares, finished goods and that of fixed assets, were not physically verified since long
time entailing the internal control risk;
iv) The company has not updated and also reconciled party wise subsidiary / sectional ledger under
Receivable and payable, stores Ledger, Advances & claims recoverable, Security Deposit and Liabilities
for Expenses, as such the financial effect, if any not ascertained.
A 'material weakness' is a deficiency, or a combination of deficiencies, in internal financial control over financial
reporting , such that there is a reasonable possibility that a material misstatement of the company's annual or
interim financial statements will not be prevented or detected on a timely basis.
In our opinion, the company has maintained in all material respects adequate internal financial control systems
over financial reporting and such internal financial controls over financial reporting were operating effectively as
at 31st March, 2020 on criteria based on or considering the essential components of internal control stated in the
Guidance Note on Audit of internal Financial Controls Over Financial Reporting issued by the institute of
Chartered Accountants of India except for the possible effects of the material weaknesses described above on
Inherent Limitations of Internal Financial Controls over Financial Reporting
Qualified Opinion
According to information and explanation given to us and based on our audit, the following material
weaknesses have been identified as at 31st March 2020:
M. C. Bhandari & Co.Chartered Accountants
40
the achievement of the objectives of the control criteria.
We have consiered the material weaknesses identified and reported above in determining the nature, timing, and
extent of audit tests applied in our audit of the financial statements of the company and these material
weaknesses does not affect our opinion on the financial statements of the Company.
For M. C. Bhandari & Co.Chartered AccountantsFirm registration No. 303002E
CA Neeraj Jain(Partner)(Membership No. 064393)UdIN : 20064393AAAABDO6195
Place : KolkataDate : 27th November, 2020
M. C. Bhandari & Co.Chartered Accountants
41
REPLIES TO THE INDEPENDENT AUDITOR'S REPORT ON THE ACCOUNTSFOR THE YEAR ENDED 31st MARCH, 2020
INDEPENDENT AUDITORS' REPORT TO THE MEMBERSMANAGEMENT REPLIES TO
THE COMMENTS
Report on the Audit of the Financial Statements Opinion
We have audited the financial statements of the Durgapur
Projects Limited ('the company') which comprises the
Balance Sheet as at 31st March, 2020, and the Statement of
Profit and Loss, and Statement of Cash Flows for the year
then ended, an notes to the financial statements, including
summary of significant accounting policies and other
explanatory information ('the statement')
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements along with the notes thereon, give the information required by the companies Act, 2013 in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the company as at 31st March 2020, and its losses ( financial performance) and its cash flows for the year ended on that date.)
General Observation, nothing to comment
Basis for Opinion
We conducted our audit of the financial statements in accordance with the standards on auditing (SAs) specified under section 143(10) of the companies Act, 2013. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are inepenent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the finanial statements under the provisions of the Companies Act, 2013 and the Rules there under , and we have requirements and code of Ethics. We believe that the audit evidence we have obtained is sufficient an appropriate to provide a basis for our opinion.
General Observation, nothing to comment
Material Uncertainty related to Going Concern
We draw attention to Note no. 23B(3) (i) of the financial statements which indicates that the company's net worth has got eroded as of March 31, 2020 and the company's current liabilities exceeded its current assets and negative cash flows along with ensuring commitment for repayment of Long Term loans, These conditions, along with other matters as stated in said note, indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern.
Our report is not modified in respect of this matter
As referred to in the Auditors' Report, Note 23B(3)(i) explains as to why the management considers that the company's continuation on sustainable going concern basis will not be affected.
42
Emphasis of Matter
Without modifying our opinion, attention is drawn to following matters :
a) Reference is invited to Note no. 23B3 (ii) to the financial statements, wherein the company has initiated a restructuring process, whereby the transmission and distribution business along with its related assets, liabilities & claims of the company have been transferred at book value on slump sale basis to WBSETCL & WBSEDCL ( transferee companies) by way of slump sale transaction agreement with transferee companies with effect from 1st January 2019.
b) Reference is invited to Note No, 20(i), the company has credited Rs. 15318.84 lakhs (FY 2018-19 Rs. 17422.00 lakhs) to the profit and loss account an a balance of regulatory assets in respect of financial years from 2014-15 to 2018-19 amounting to Rs. 74765.84 lakhs (FY 2018-19 Rs. 59447.00 lakhs) as shown under exceptional items an Regulatory Assets respectively and realisable through Regulatory Mechanism as per regulation of West Bengal Electricity Regulatory Commission (WBERC). However, the relevant orders facilitating the credit have not yet been received from WBERC. In case of any variations in the order of WRERC as against the amount estimated by the company, there may be change in the balances of accumulated losses an regulatory assets, but effect not ascertained.
c) Reference is invited to Note No. 3(a) (ii) to the financial statements, wherein pending finalisation of repayment terms the loans from Government off West Bengal amounting to Rs. 39169.32 lakhs and from Central Electricity Authority amounting to Rs. 1181.00 lakhs have been considered to be of long term in nature.
d) Reference is invited to Note 2 (ii) an 10(c) (i) to the financial Statements, wherein compliance with regulation No 48 on Terms an Conditions of Tariff Otder, 2011 issued by West Bengal Electricity Regulatory Commission, the Company has create Reserve for Unforeseen Exigencies amounting to Rs. 9002.75 lakhs against which investment amounting to Rs. 728.97 lakhs only has been made in Term deposit with Banks.
e) Reference is invited to Note No. 10(a) (ii) to the financial statements, wherein pending physical verification of stores and spares, the discrepancy between book balance and physical stock, if any, has not been identified and adjusted in the financial statements, whose effect is not ascertained.
f) Reference is invited to Note No. 4(b) (ii) and 23B (3) (iii) to financial statements, Balances of Coal Companies, Security Deposit, Advance receive / Paid claims recoverable, Advance to contractors / suppliers / others, Trade Receivable, Trade payables are subject to the exercise of reconciliation and confirmation. Necessary accounting adjustment require if any, will be post completion of the said exercise.
Whereas, the Slump Transaction Agreement with WBSETCL was conclued on 11 Aprril 2019, that with WSEDCL was one on 30 Sept. 2019
No further comment than what has been already stated in the referred note.
No further comment than what has been already stated in the referred note.
No further comment than what has been already stated in the referred note.
No further comment than what has been already stated in the referred note.
No further comment than what has been already stated in the referred note.
43
g) As more fully described in Note no. 24 to the statement, to assess the recoverability of certain assets, the Company has considered internal and external information up to the date of this report in respect of the current indicators of future economic conditions consequent to the global health Pandemic COVID 19.
h) Reference is invite to Note 23B (6) in respect of un-reconciled balances of WBSEDCL and consequently was not netted off the debit balance with liabilities.
No further comment than what has been already stated in the referred note.
General Observation nothing to comment
No further comment than what has been already stated in the referred note.
General Observation nothing to comment
Other Information
The Company's management an Board of Directors are
responsible for the other information. The other information
comprises the information included in the Director's report,
Management Discussion & Analysis etc, but does not
include the financial statements and our auditors report
thereon. Such other Information's are expected to be made
available to us after the date of this auditor's report. Our
opinion on the financial statements does not cover the other
information and we do not express any form assurance
conclusion thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified
above when it becomes available and, in doing so, consier
whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
When we read the other information, if we conclude that
there is a material misstatement therein, we are required to
communicate the matter to those charged with governance
and take appropriate actions necessitate by the
circumstances and the applicable laws an regulations.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
The Company's Board of Directors is responsible for the
matters stated in section 134(5) of the Companies Act, 2013
(the Act) with respect to the preparation of these financial
statements that give a true and fair view of the financial
position, financial performance, an cash flows of the
Company in accordance with the accounting principles
generally accepted in India, specified under section 133 of
The Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the
company and for preventing an detecting frauds and other
irregularities; selection an application of appropriate
44
accounting policies; making judgments and estimates that
are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls,
that were operating effectively for ensuring the accuracy
and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements
that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements the Board of Directors
is responsible for assessing the Company's ability to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the Board off Directors
either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so. Board
off directors are also responsible for overseeing the
Company's financial reporting process.
Auitor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level off assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably by expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional scepticism through out the audit We also:
?Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
?Obtain an unerstanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143 (3)(i) of the Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
General Observation, nothing to comment
45
?Evaluate the appropriateness of accounting policies use and the reasonableness of accounting estimates and related disclosures made by management.
?Conclude on the appropriateness of management's use of the going concern basis, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
?Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied wi th relevant ethical requirements regarding independence, an to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
i) As required by the Companies ( Auditor's Report) Order, 2016 ('the Order') issued by the Central Government of India in terms off sub -section (11) of section 143 of the Companies Act, 2013, and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we given in 'Annexure A' a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
ii) As required by the Section 143 (5) of the Act, we give in 'Annexure B' a statement on the matters specified by the Office of the Principal Accountant General for the Company.
iii) As required by Section 143(3) of the Act, we report that :
a) We have sought an obtained all the information and explanations which to the best off 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 Company so far as it appears from our examination of those books.
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
46
c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books off account.
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.
e) In terms of notification on G.S. R. 463 (E) date 5th June 2015 issued by the Ministry off Corporate Affairs the provisions of Section 164(2) of the Act regarding disqualification of Directors are not applicable to a Government Company.
f) With respect to the adequacy of the internal financial controls over financial reporting of the company and the operating effectiveness of such controls, refer to our separate Report in ' Annexure C'.
g) The matter described under material uncertainty related to Going Concern paragraph may have an adverse effect on the functioning of the Company
h) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 in our opinion an to the v8ubest of our knowledge and belief an the information and according to the explanations given to us :
i) The Company has disclose the impact of pending litigations on its financial position in its financial statements Refer Note no . 22 to the financial Statements :
ii) The Company did not have any long - term contracts including derivative contracts for which there are no material foreseeable losses.
iii) There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
Dated : 27th November, 2020Place : Kolkata
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
CA. N. Jain(Partner)
(Membership No. 064393)
(Goutam Biswas)Managing Director
(Pranab Kumar Das Sharma)Director
(P. K. Mitra)Advisor (F & A) & CFO
47
Annexure - A to the Independent Auditor's ReportReferred to in paragraph 1 under the heading 'Report on Other Legal and Regulatory
Requirements' of our Report
SlNo.
INDEPENDENT AUDITORS' REPORT TO THEMEMBERS
MANAGEMENT REPLIES TOTHE COMMENTS
1 The Company is maintaining records of Fixed Assets Showing particulars but not showing quantitative details situation of fixed assets and identification marks which need to be updated in Fixed Assets Register.
(b) As informed to us, the Fixed Assets in respect to Furniture / Fixture an Office equipment only relating to its Administrative office and plant offices have been physically verified by the management and same is under the process of reconciliation. Pending such reconciliation, discrepancies, if any are not identified a adjusted. In our opinion, all the fixed assets should be verified by the Management over a reasonable period of time.
(c) In our opinion and according to the information and explanations given to us, the total area of freehold land in the possession of the Company as on 31.03.2020 was 2977.585 acres. Out of total Land measuring 3103.634 acres as on 31.03.2019, 126.049 acres were transferred to WBSEDCL & WBSECTCL. The land record updation is still in process. Mutation of land measuring 857.16 acres was completed out of total unmuted land measuring 1067.04 acres. Mutation of balance land at Mouza Gopinathpur (JL - 85) is under process. The leasehold land as on 31.03.2019 is 4.039 acres, out of which 3.449 acres were transferred to WBSEDCL. However, the relevant lease transfer is pending. Deeds of conveyance in respect of Land Transferred to WBSEDCL and WBSETCL are yet to be executed.
The deeds of freehold land measuring 36.65 acres have been mortgaged with the lenders and as such not made available to us for verification.
2 During the period under audit, Physical verification of Raw Materials (Coal) only has been conducted by the management. Inventory of Stores & Spares and finished goods have not been physically verified by management during the year. Stores and Spares of plants other than Power Plant were last physically verified on 31st March 2015, Those for Power Plant have been carried out on 31st March 2018.
(a)
The Observation is an per the existing status coming down since long past. A programme will be undertaken in future to suitably address the situation.
Physical verification of fixed assets has already been carried out for Water W o r k s , C e n t r a l W o r k s h o p , Administrative Building and Plant Offices during 2016-17 & 2017-18. The same have been carried out during 2018-19 for water Works, Administrative office and plant offices in respect of Furn i ture , F ix tures and off ice Equipments. During the year 2019-20 physical verification of Fixed Assets have been carried out in respect of Furniture / Fixture and office Equipment relating Administrative office and plant Off ice a lso. These are under r e c o n c i l i a t i o n , a n d n e c e s s a r y adjustments, if any, will be made accordingly.
The observations are statement of facts only.
The observations are statement of facts only.(a)
48
(b) Since Stores & Spares, Finished goods etc remains physically unverified during the year, the discrepancies if any, remains unidentified and adjusted.
3. According to the information and explanations given to us, the company has not granted any loan, secured or unsecured to companies, firms, limited liability partnerships or other parties covered in the register required under section 189 of the Companies Act, 2013. Accordingly, paragraph 3 (iii) (a), (iii) (b) and (iii) (c) of the Order is not applicable.
4. In our opinion and according to the information and explanations given to us, the Company has not given any loans, made any investments, provide any guarantees, and given any security to which the provisions of section 185 and 186 of the Companies Act, 2013 are applicable.
5 In our opinion and according to the information and explanations given to us, the company has not accepted any deposits and accordingly paragraph 3 (v) of the Order is not applicable.
6. The maintenance of cost records has been prescribed for Electricity Industry (Power Plant) for this company by the Central Government under sub-section (1) of section 148 of the Companies Act, 2013, we have broadly reviewed the cost records maintained by the company pursuant to the above rules and we are of the opinion that prima facie, the prescribed accounts and records are maintained.
7. According to information and explanations given to us and the records of the Company examined by us, the company is generally regular in depositing undisputed statutory dues including Provident Fund, Income-Tax, Goods & Service Tax, Duty of Customs and any other statutory dues as applicable, with the appropriate authorities. The company has provided liability on account of additional Dearness Allowance (DA) for the period from January 2014 to August 2019 arises on account of promotion given to employees under Carrier Progression Scheme (CPS). Since such DA has not deposited with relevant authority. Further, an amount of Rs. 5332.23 lacs on account of interest for delay payment of electricity duty is pending for payment for more than six months.
According to the information and explanations given to us, no undisputed amount except for interest on electricity duty as referred above is payable in respect of the aforesaid statutory dues, for a period of six months from the date they become payable.
The Observations are statement of facts only.
General Observation nothing to comment
General Observation nothing to comment
General Observation nothing to comment
(a)
General Observation nothing to comment
General Observation nothing to comment
49
b) According to the information and explanations given to us, the following dues of Sales Tax, CST, Service Tax, Duty of Excise and Value Added Tax have not been deposited by the Company on account of disputes :
Nature Nature of Amount Period Forum Whereof Statute Dues Pending
Central Demand 2620.89 03/2011 CESTATExcise of Excise to KolkataAct 1944 Duty 12/2015
Central Demand 355.26 2013-14 CommissionerExcise of Excise to (Appeals) CGSTAct 1944 Duty 2016-17 Siliguri and
AdjudicationAuthority
Service Demand 694.97 2006-07 CommissionerTax of Service to (Appeals) CGST
Tax 2016-17 Siliguri andAdjudicatingAuthority
Service Demand 98.53 2005-06 CESTATTax of Service to Kolkata
Tax 2012-13
WB Value Demand 74.68 2000-01 Asst.Added of Value to CommissionerTax Added 2003-04 Taxes (Appeals) /
Tax Durgapur
Central Demand 36.14 2003-04 Asst.Sales of Central CommissionerTax Sales Tax of Commercial
Taxes(Appeals) /Durgapur
8. In our opinion and according to the information and explanations given to us, the company has not defaulted in repayment of dues to any financial institutions, bankers, and government or debenture holders during the year other than the following amounts :
Sl. Name of the Nature of Principal Interest PeriodNo. Body the Loan
1. Government of Term 39169.32 41809.50 1985 toWest Bengal Loan 2020
2. Central Electricity Term 1181.00 4727.09 1985 toAuthority Loan 2020
Total 40350.32 46536.59
It has been disclosed in the Notes to the Accounts as Contingent Liability at Note - 22
General Observation, nothing to comment
50
9. Based upon the audit procedures performed and the information and explanations given by the management, he company has not raised any moneys by way of initial public offer or further public offer including debt instruments. On the basis of review of utilization of funds pertaining to term loans taken by the company we are of the opinion that the funds have been applied for the purpose for which they were obtained.
10. According to the information and explanations given to us and as represented by the management and based on our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have not come across any instances of fraud by the Company or on the Company by its officers or employees, notices or reported during the year, nor we have been informed of any such case by the management.
11. According to the information and explanations given to us, requirement of the provisions of section 197 read with schedule V to the Companies Act with respect to managerial remuneration is not applicable to Government company vide Notification dated 5th June 2015 of Ministry of corporate affairs.
12. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph (xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with section 188 of the Companies Act, 2013 and the details of such transactions have been disclosed in the financial statements of the company as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or patly convertible debentures during the year. Accordingly, paragraph (xiv) of the Order is not Applicable.
15. According to the information and explanations given to us and based on our examination of the records of the company, the company has not entered into non-cash transactions with directors or persons connected with them. Accordingly paragraph (xv) of the Order is not applicable.
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
General Observation, nothing to comment
51
16. According to the information and explanations given to us and based on our examination of the records of the company, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
General Observation nothing to comment
Dated : 27th November, 2020
Place : Kolkata
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
CA. N. Jain(Partner)
(Membership No. 064393)UDIN : 20064393AAAABDU6195
(Goutam Biswas)Managing Director
(Pranab Kumar Das Sharma)Director
(P. K. Mitra)Advisor (F & A) & CFO
52
ANNEXURE - B
Referred to in paragraph (ii) under the heading 'Report on Other Legel and Regulatory Requirements'of our Report of even date
General directions under section 143(5) of the companies act, 2013 for the year ended 31st March 2020
SlNo.
Questionnaires Remarks
1. Whether the company has system in place to process all the accounting transactions through IT system? If yes, the implications of processing of accounting transactions outside IT system on the integrity of accounts along with the financial implications, if any, may be stated.
Presently the company has old information technology
application system comprising of different modules /
software applicable to different business process, and
none of those modules / software are integrated and
interfaced, which could potentially result into errors /
omissions in financial data processing.However, it is informed that the company has undertaken
the implementation of a linked system through new
modules off software and same is yet to be commissioned
and operationalised.
During the period under audit, no restructuring of existing
loan or waiver / write off of loans or interest by the lenders
has been done for the company.
Pursuant to restructuring scheme, the company has
received an amount of Rs. 134.00 lakhs from Government
of West Bengal for fencing around the land of the
Company. Out of the said amount, no money was utilized
during current FY 2019-20
2. Whether there is my restructuring of an existing loan cases of waiver / write off off debts / loans / interest etc. made by a lender to the company due to the company's inability to repay the loan ? If yes, the Financial Impact may be stated.
3. Whether funds received / receivable for specific schemes from central / state agencies were properly accounted for / utilized as per the terms and conditions ? List the cases off deviation.
Dated : 27th November, 2020
Place : Kolkata
For M C Bhandari & Co.Chartered Accountants(FRN - 303002E)
CA. N. Jain(Partner)(Membership No. 064393)UDIN : 20064393AAAABDU6195
53
Sector Specific Sub-directions under Section 143(5) of the Companies Act, 2013 for the Year 2019-20
SlNo.
Questionnaires Remarks
1. Adequacy of steps to prevent encroachment of idle land owned by the company may be examined. In case land of the Company is encroached, under litigation, not put to use or declared surplus, details may be provided.
On the basis of information and explanation given to us we
noted that around 44 acres of land are under unauthorized
occupation. Refer Note no 5 (a) (i)
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
CA. N. Jain(Partner)
(Membership No. 064393)UDIN : 20064393AAAABDU6195
Dated : 27th November, 2020
Place : Kolkata
54
1.
The Company's management is responsible for
establishing and maintaining internal controls based on the
internal control over financial reporting criteria established
by the Company considering the essential components of
internal control stated in the guidance note on audit of
internal financial controls over financial reporting issued by
the Institute of Chartered Accountants of India ('ICAI').
These responsibilities include the design, implementation
and maintenance off adequate internal financial controls
that were operating effectively for ensuring the orderly and
efficient conduct of its business, including adherence to
company's policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy
and completeness of the accounting records, and the timely
preparation off reliable financial information, as required
under the Companies Act, 2013.
2.
Our responsibility is to express an opinion on the
Company's internal financial controls over financial
reporting based on our audit. We conducted our audit in
accordance with the guidance note on audit off internal
financial controls over financial reporting ( the 'Guidance
Note') and the standards on auditing (the 'Standards')
issued by ICAI and deemed to be prescribed under section
143 (10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls., Those
Standards and the Guidance Note require that we comply
with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether adequate
Management's Responsibility for Internal Financial
Controls
Auditor's Responsibility
ANNEXURE - C
Referred to in paragraph (iii) (f) under the heading ' Report on Other Legal and Regulatory Requirements' of our Report of even data to the member of the Durgapur Projects Limited.
Report on the Internal Financial controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ('the act')
We have audited the internal financial controls over financial reporting of The Durgapur Projects Limited ('the company') as of March 31, 2020 in conjunction with our audit of the standalone financial statements off the Company for the year ended on that date.
SlNo.
Independent Auditors Report to the Members Management Replies to the comments
We have audited the internal financial controls over financial reporting of the Durgapur Projects Limited ('The Company as of 31st March, 2020 in conjunction with our audit of the financial statements of the Company for the year ended on the date.
General Observation nothing to comment
General Observation nothing to comment
General Observation nothing to comment
55
internal financial controls over financial reporting was
established and maintained and if such controls operated
effectively in all material respects.
Our audit involves performing procedures to obtain audit
evidence about the adequacy of the internal financial
controls system over financial reporting and their operating
effectiveness. Our audit of internal financial controls over
financial reporting included obtaining an understanding of
internal financial controls over financial reporting, assessing
the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of
internal control based on the assessed risk. The procedures
selected depend on the auditor's judgement, including the
assessment of the risks off material misstatement of the
financial statement, whether due to fraud or error.
We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit
opinion on the Company's internal financial controls over
financial reporting.
3.
A Company's internal financial control over financial
reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles. A Company's internal financial control over
financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company,
(ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statement in accordance with generally accepted
accounting principles, and that receipts and expenditures of
the company are being made only in accordance with
authorizations of management and directors of the
company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition
use, or disposition of the company's assets that could have
a material effect on the financial statements.
4.
Because of the inherent limitations of internal financial
controls over financial reporting, including the possibility of
collusion or improper management override of controls,
material misstatements due to error or fraud may occur and
not be detected. Also, projections of any evaluation of the
Meaning of Internal Financial Controls over Financial
Reporting
Interent Limitations of Internal Financial Controls over
Financial Reporting
General Observation, nothing to comment
General Observation, nothing to comment
56
internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial
control over financial reporting may become inadequate
because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate
5.
i) The Company have documented manual for the
different components of the established internal control
but those required updation and implementation
commensurate with the present needs and objectives of
financial reporting.
ii) Presently the company has old information technology
application system comprising of different modules /
software applicable to different business process. and
none of those modules / software are integrated /
interfaced with each other, which could potentially result
into errors / omissions in financial data processing
However. However, the financial effect, if any not
ascertained.
iii) Stock of Stores and Spares, finished goods and that of
fixed assets, were not physically verified since long time
entailing the internal control risk;
Qualified Opinion
According to information and explanations given to us
and based on our audit, the following material
weaknesses have been identified as at 31st March 2020 :
The Procurement Manual for
Purchase and Works Orders
approved by the Board of Directors in n di ts 622 Meet ing he ld ono
15.10.2020 has been promulgated.
The existing Delegation of Power is
under modification process and will
be issued during the current year.
Stocks of Stores & Spares in respect
of Power Plant were last physically
verified as on 31/03/2018 and the
same for Water Works had also been
completed during 2018-19. The
required accounting provisions have
been made in the years 2017-18 and
2018-19, as necessary, pending
adjustments in the respective Stores
Ledgers. Those of other plant areas
were last physically verified as off
31.03.2015. The physical verification
of Fixed Assets are carried out on
rotational basis . The Physical
verification in respect of Water Works
and Furniture, Fixture and Office
Equipments at Administrative office
and plant offices has been completed
during 2018-19. During the current
year off 2019-20, Such verification has
also been done in respect of Furniture
/ Fixture in the Administration and
plant offices.
57
iv) The company has not updated and also reconciled
party wise Subsidiary / Sectional ledger under
Receivable and Payables, Store Ledger, Advances
& Claims Recoverable, Security Deposit and
Liabilities for Expenses;
A ' material weakness' is a deficiency, of a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.
In our opinion, the Company has maintained in all
material respects, adequate internal financial control
systems over financial reporting and such internal
financial controls over financial reporting were operating
effectively as at 31st March, 2020 on criteria based on or
considering the essential components of internal control
stated in the Guidance Note on Audit of Internal
Financial Controls Over Financial Reporting issued by
the Institute of Chartered Accountants off India except
for the possible effects of the material weaknesses
described above on the achievement of the objectives of
the control criteria.
We have considered the material weaknesses identified and reported above in determining the nature, timing, and extent of audit tests applied in our audit of the financial statements of the company, and these material weaknesses does not affect our opinion on the financial statements of the Company.
The subsidiary ledgers in respect of Stores & Spares have been reconciled in respect of Stores based on physical verification reports as on 31/03/2018 for Power Plant and for other cases based on such verification as of 31/03/2015. Adjustments as necessary have also been made in the year 2017-18.The Differences obtained in respect of advances are at present under reconciliation between the control ledgers and Subsidiary Ledgers.The details regarding liabilities for expenses are booked through liability register maintained manually at present which are being upstaged to Oracle based System.
General Observation nothing to comment
Dated : 27th November, 2020
Place : KolkataFor M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
CA. N. Jain(Partner)
(Membership No. 064393)UDIN : 20064393AAAABDU6195
(Goutam Biswas)Managing Director
(Pranab Kumar Das Sharma)Director
(P. K. Mitra)Advisor (F & A) & CFO
58
THE DURGAPUR PROJECTS LIMITED
BALANCE SHEET AS AT 31st March' 2020
(Rupees in Lakhs)
ParticularsNoteNo.
Figures as at the end of theCurrent reporting period
Figures as at the end of thePrevisous reporting period
I. EQUITY & LIABILITIES(i) Share holder's Funds :
(a) Share Capital 1 181,529.00 130,100.00(b) Reserve & Surplus 2 (344,926.11) (163,397.11) (303,948.76) (173,848.76)
(ii) Share Application Money PendingAllotment [Refer Note -1(IV)] 51,429.00
2. Non-Current Liabilities(a) Long-Term Borrowing 3(a) 276,655.88 306,579.49(b) Other Long Term Liabilities 3(b) 40,402.67 40,396.45(c) Long Term Provision 3(c) 15,471.06 332,529.62 12,146.42 359,122.36
3. Current Liabilities :(a) Short-Term Borrowing 4(a) 10,797.62 3,921.49(b) Trade Payables 4(b) 44,060.06 44,926.05(c) Other-Current Liabilities 4(c) 133,487.55 78,629.75(d) Short-Term Provisions 4(d) 10,724.75 199,069.98 12,922.47 1,40,400.18
Total 368,202.49 3,77,102.78
II. ASSETS1. Non-Current Assets :
(a) Fixed Assets(i) Tangible Assets 5(a) 245,514.19 270,207.18(ii) Intangible Assets 5(b) 20.06 23.85(ii) Capital Work-in-Progress 5(c) 6,418.88 6,919.83
(b) Non-Current Investments 6 0.08 30.23(c) Deferred Tax Assets 7 - -(d) Long-Term Loans & Advance 8 - -(e) Other Non-current Assets 9 45.79 251,999.00 227.82 277,408.91
(2) Current Assets :(a) Inventories 10(a) 12,690.84 7,335.94(b) Trade Receivables 10(b) 15,434.36 17,142.72(c) Cash and Cash Equivalents 10(c) 4,471.26 6,591.91(d) Short-term loans and advances 10(d) 7,933.88 8.296.31(e) Other Current assets 10(e) 75,673.16 116,203.49 60,326.99 99,693.87
Total 368,202.49 377,102.78
31st March' 2020 31st March' 2019
Contingent Liabilities are disclosed at Note - 22Significant Accounting Policies & Other Disclosures are furnished at Notes : 23A, 23B, 23C, 24, 25 & 26
(Goutam Biswas)Managing Director
(Pranab Kumar Das Sharma)Director
(P. K. Mitra)Advisor (F & A) & CFO CA. N. Jain
(Partner)(Membership No. 064393)
UDIN : 20064393AAAABDU6195Dated : 27th November, 2020Place : Kolkata
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
In Terms of our Report of Even Date
59
THE DURGAPUR PROJECTS LIMITED
STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31st MARCH 2020
(Rupees in Lakhs)
Particulars Note No. Figures for the
Current ReportingPeriod
Figures for thePrevious Reporting
Period
2019-20 2018-19
I. Revenue From Operations 11 83,581.16 108,547.42II. Other Income 12 480.99 2,965.38III. Total Revenue ( I + II) 84,062.15 111,512.80IV. Expenses
Cost of Materials Consumed 13 62,384.38 58,568.40Purchase of Stock-in-Trade (Energy) -- 3,857.42Changes in Inventories of finished goodsWork-in-progress and Stock-in-Trade 14 -- --Employee benefits Expense 15 18,756.06 16,392.03Finance Costs 16 33,079.09 33,704.03Deprecition/Impairment and amortization 17 12,922.89 14,184.37expenseOther Expenses 18 11,394.43 19,201.22Prior Period Adjustments (net) 19 67.73 (542.63)
Total Expenses 138,604.58 145,364.84
V. PROFIT BEFORE EXCEPTIONAL &EXTRA ORDINARY ITEMS & TAX (III-IV) (54,542.43) (33,852.04)
VI Exceptional Items 20 15,318.84 17,422.00
VII. Profit Before Extra-Ordinary Items & Tax
(V- VI) (39,223.59) (16,430.04)
VIII Extraordinary Items
IX. Profit Before Tax (VII - VIII) (39,223.59) (16,430.04)
X. Tax Expense :
(1) Current Period -- --
(2) Deferred Tax -- --
XI Profit /( Loss ) For the Period (IX - X) (39,223.59) (16,430.04)
XII Net Profit / (Loss) Transferred to Reserve (39,223.59) (16,430.04)
& Surplus
Basic Earnings Per Share 21 (257.06) (126.29)
Diluted Earnings Per Share 21 (257.06) (126.29)
Contingent Liabilities are disclose at Note - 22
Significant Accounting Policies & Other Disclosures are furnished at Notes 23A, 23B, 23C, 24, 25 & 26
(Goutam Biswas)Managing Director (Pranab Kumar Das Sharma)
Director
(P. K. Mitra)Advisor (F & A) & CFO CA. N. Jain
(Partner)(Membership No. 064393)
UDIN : 20064393AAAABDU6195Dated : 27th November, 2020Place : Kolkata
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
In Terms of our Report of Even Date
60
Cash Flow Form Operating ActivitiesProfit / (Loss) after Extraordinary Items and Tax : (39,223.59) (16,430.04)Adjustment for :Depreciation 12,922.89 14,185.00Interest Income (290.91) (543.69)Bad Debits & Provisions 42.40 7,649.62Interest Expenses 33,079.09 45,753.47 33,704.03 54,994.96
Operating Profit / Loss before Working Capital Changes: 6,529.88 38,564.92Adjustment for :Trade Receivables 1,665.97 (2,548.74)Other Receivables (14,801.70) (24,222.15)Inventories (5,354.91) 683.71Change-in-provisions 1,126.93 (402.80)Trade & Other Payables 16,211.50 (1,152.21) (45,867.51) – 72,357.48
Net Cash Flow from Investing Activities : 5,377.67 – 33,792.56
Cash Flow from Investing ActivitiesAddition to Fixed Assets (Including CWIP) (1,726.34) (3,154.17)Proceeds from Sale of Assets 14,001.18 --Diminution in Value of Investment 30.15 --Investment matured during the year -- 422.35Interest Income 290.91 543.69Net Cash Flow from Investing Activities : 12,595.90 (2,188.13)
Cash Flow From Financing ActivitiesProceeds from issue of Equity Share (Pending Allotment) - 51,429.00Proceeds from Consumers contribution & Capital Grant (1,887.77) 539.71Grant From Govt. of WB for Fencing in Land off DPL 134.00Proceeds from Loans 14,546.55 12,168.23Repayment of Loans (2,770.83) --Interest on Loan Paid (30,216.17) (29,768.00)Net Cash Glow from Financing Activities : (20,094.22) 34,368.94
NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS (2,120.65) (1,611.76)
Cash and Cash Equivalents at the Beginning of the year 6,591.91 8,203.67
Cash and Cash Equivalents at the End off the year 4,471.26 6,591.91
Note : (i) The above Cash Flow Statement has been prepare under the 'Indirect Method' as set out in the Accounting Standard - 3 (AS - 3) on Cash flow Statement issued by Institute of Chartered Accountant of India.
Note : (ii) Cash Equivalents comprises of following balance sheet amount as per Note 10 (c) :
2019-20 2018-19
Cash & Cash EquivalentsImprest Cash, Cheques in hand and postage stamps 1.43 1.46Balance with Banks :In Current Account 55.97 984.63In other earmarked balance 3.50 1.59Other Bank Balance :Recurring Deposit with Scheduled Bank - 36.00Fixed Deposits with Original Maturity upto 3 months 516.27 1,451.51Fixed Deposits with Bank under IPDS 31.99 647.40Fixed Deposits with Original Maturity more than 3 months 212.70 1,253.69Fixed Deposits given as lien 2,025.74 1,916.28Margin Money 1,623.66 299.36
4,471.26 6,591.91
THE DURGAPUR PROJECTS LIMITED
CASH FLOW STATEMENT
Particulars 2019-20 2018-19
(Goutam Biswas)Managing Director (Pranab Kumar Das Sharma)
Director
(P. K. Mitra)Advisor (F & A) & CFO CA. N. Jain
(Partner)(Membership No. 064393)
UDIN : 20064393AAAABDU6195
Dated : 27th November, 2020Place : Kolkata
For M C Bhandari & Co.Chartered Accountants
(FRN - 303002E)
In Terms of our Report of Even Date
(Rupees in Lakhs)
61
INDEX TO NOTES
Note 1 Share Capital 62
Note 2 Reserve & Surplus 63
Note 3(a) Long Term Borrowings 64
Note 3(a)(i)(ii) Worksheet to Note 64
Note 3(b) Other Long Term Liabilities 64
Note 3(c) Long Term Liabilities 64
Note 3(c) Long Term Provisions 64
Note 4(a) Short Term Borrowing 66
Note 4(b) Trade Payable 66
Note 4(c) Other Current Liabilities 67
Note 4(d) Short Term Provisions 67
Note 5(a) Fixed Assets(Tangible) 69
Note 5(b) Capital Work-in-Progress 70
Note 5(c) Capital during Construction 70
Note 6 Non Current Investments 71
Note 7 Deferred Tax Assets 71
Note 8 Long Term Loans & Advances 71
Note 9 Other Non Current Assets 71
Note 10(a) Inventories 72
Note 10(b) Trade Receivables 72
Note 10(c) Cash & Bank Balance 72
Note 10(d) Short Terms Loans & Advances 73
Note 10(e) Other Current Assets 73
Note 11 Revenue from Operation 74
Note 11(a) Particulars of Sale of Products 74
Note 11(b) Particulars of other Operating Income 74
Note 12 Other Income 74
Note 13 Consumption of Raw Materials 75
Note 14 Increase/ Decrease Stock 75
Note 15 Employee Benefit Expenses 75
Note 16 Finance Cost 75
Note 17 Depreciation & Amortization Expenses 76
Annexure of Note 15
Note 18 Other Expenses 78
Note 19 Prior Period Adjustments 78
Note 20 Exceptional Items 79
Note 21 Earnings per Share 79
Note 22 Contingent Liabilities for claim against the company not 79
acknowledged as debts . Worksheet to Note 13
Note 23 A 82-86
Note 23 B 87-89
Note 23 C Segment Report 90
Authorised Share Capital
300,00,000 (P.Y. 150,00,000) Equity Shares off Rs. 1000/- each 300,000.00 150,000.00
Total Authorised Capital 300,000.00 150,000.00
Issued, Subscribed & Fully-Paid up
a) 1,49,999(P.Y. 1,49,999)Equity Shares of Rs. 1000/- Each 1,499.99 1,499.99fully paid-up for a consideration other than cash
b) 1,80,02,901 (P.Y. 1,28,60,001) Equity Shares of Rs. 1000/- each 80,029.01 128,600.01fully paid-up in cash
Total Issued, Subscribed & fully-paid up 181,529.00 130,100.00
Reconciliation of Shares Outstanding at the Beginning and at the End of the Reporting Period.
Particulars As at 31st March 2020 As at 31st March 2019
No. of Shares Value No. of Shares Value
Shares at the beginning of the year 1,30,10,000 130,100.00 1,30,10,000 1,30,100.00Addition during the year 5,142,900 51,429.00 -- --Shares at the closing of the year 1,81,52,900 181,529.00 1,30,10,000 130,100.00
Terms / Rights attached to the Equity Shares :1.(i) The Company has only one class of Equity Shares having face value of Rs. 1000/- per share . Each
holder of Equity Shares, present in person or proxy, is entitled to one vote for each share held. The Dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the next General Meeting.In the event of Liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the Capital paid up at the commencement of winding up.
1 (ii) Out of 1,30,10,000 Shares of Rs. 1000/- each, 5(five) shares of Rs. 1000/- each are held by the Additional Chief Secretary and four other officers of the Department of Power & NES, Government of West Bengal and 1(one) share of Rs. 1000/- each is held by the MD, DPL, while the remaining Shares stand in the name of the Hon'ble Governor of West Bengal.
1(iii) 1,49,999 Equity Shares of Rs. 1000/- each were issued in 1961 to the Hon'ble Governor of West Bengal as fully paid up on acquisition of the undertaking of the Durgapur Projects Ltd other than in Cash.
1(iv) There has been fresh infusion of Rs. 514.29 crores towards equity on 28th March, 2019, from the Government of West Bengal vide their Memo No. 100 (sanc.) POW.-13012(12)/16/2019-SECTION (POWER). Accordingly, 5142900 Equity Shares of Rs. 1000/- each was alloted during the FY 2019-20 on 24.10.2019
1(v) Details of Shareholders holding more than 5% shares in the Company
PercentageEquity Shares of Rs. 1000/- each, fully paid up As at 31st March 2020 As at 31st March 2019
Governor of West Bengal 99.9999 18,152,894 13,009,994
1(vi) As a measure to turnaround the Company the Authorised Share Capital of the Company has been raised to Rs. 300000 Lakhs Comprising of 30000000 nos. of Equity Shares of Rs. 1000 each on 28.07.2019 vide Extra ordinary General Meeting held on 12.07.2019 as approved by WB State Government Vide its order bearing no. 104-POW-13012(11)/16/2019- SECTION (POWER) dated 28.06.2019.
Notes on Financial Statements for the Year Ended 31st March 2020
THE DURGAPUR PROJECTS LIMITED
(Rs. in Lakhs)
Note 1Share Capital
Particulars As at 31st March 2020 As at 31st March 2019
62
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the year Ended 31st March 2020
(Rs. in Lakhs)Note 2Reserves & Surplus
Particulars As at 31st March 2020 As at 31st March 2019
i) Capital Reserve : 0.56 0.65
Less : Transferred to Profit & Loss A/C [Note 2(i)] 0.09 0.47 0.09 0.56
ii) Government Grant :
From Government of India 1,138.50 1,138.50
Less : Transfer to WBSEDCL [Note 23B(3)(ii)(a)] (1,038.50 --
Balance as on date 100.00 1,138.50
From Government of West Bengal 147.00 147.00
Grant From Govt. of WB for Fencing in Land of DPL [Note-2(iii)] 134.00 -
Less: Transfer to WBSEDCL [Note-23B(3)(ii)(a)] (146.00) -
Balance as on date 135.00 235.00 147.00 1,235.50
iii) Consumer's Contribution : 3,645.75 3,497.04
Less: Transfer to WBSECL [Note-23B(3)(ii)(a)] (434.50) 148.71
Less Refund to Consumer (0.22)
Balance as on date 3,211.03 3,646.75
iv. Reserve for Unforeseen Exigencies : [Note 2(ii)] 8,249.61 7,090.05
Less : Transfer to WBSEDCL (Note 23B(3)(ii)(a)] (268.54)
Add: Transfer from Profit & Loss A/c During the year 79.88 227.87
Add : Transfer from Profit & Loss A/C during the year 941.80 931.69
Balance as on date 9,002.75 8,249.61
v) Profit and Loss Account: (317,130.19) (299,540.67)
Add : Transfer from Capital Reserve 0.09 0.09
(317,130.10) (299,540.58)
Add/(Less) : Profit for the year (39,223.59)) (16,430,04)
(365,353,69) (315,970.63)
Less : Appropriation
Transfer to Reserve for Unforeseen Exigencies 79.88 227.87
Transfer to Reserve for Unforeseen Exigencies 941.80 931.69
Balance as on date (357,375,36) (317,130.19)
344,926.11 303,948.76
2(i) In accordance with teh Accounting Policy [Note 23A (2) (h)], Subsidy received from Housing Department, Govt. of West Bengal amounting to Rs. 5.15 lakhs for creation of fixed assets during 1986-87, originally transferred to Capital Reserve, is adjusted by transferring Rs. 0.99 lakhs annually to Profit & Loss Account.
2(ii) Reserve for Unforseen Exigencies : In accordance with Regulation No. -48 framed by Hon'ble West Bengal Electricity Regulatory Commission (WBERC), an amount Rs. 941.80 lakhs(PY- Rs. 931.69 lakhs) has been transferred to the Reserve during the year.
In addition, interest on term deposit against unforeseen exigencies amounting to Rs. 75.88 lakhs (PY Rs. 227.87 Lakhs) earned during the year has also been transferred to the Reserve.
2(iii) An Amount of Rs. 134.00 Lakhs has been received from the Government of West Bengal as Grant for setting up of Barbed wire
fencing with concrete pillars, Ms Gates and Sign Boards in the plots of Land owned by the DPL vide G.O. (Memo) No. 53.POW-
13012(11)/34/2019 SECTION (POWER); dated 23.12.2019
63
Particulars As at 32st March 2020 As at 31st March 2019
(A) Secure Loan(i) Term Loan from Power Finance Corporations Ltd. 232,833.33 266,229.17
Note-3(a)(i)](ii) Term Loan from West Bengal State Co-Operative Bank Ltd. 3,472.23 --
236,305.56 266,229.17
(B) Unsecured Loan(i) Loan from Government of West Bengal [Note-3(a)(ii)] 39,169.32 39,169.32(ii) Loan from Central Electricity Authority 1,181.00 1,181.00
276,655.88 306,579.49
3(a) (i) The said Term Loan of Rs. 269000 Lakhs is guaranteed by Govt. of West Bengal to the tune of Rs. 216000 Lakhs (i.e. 80% of Loan Amount) as per Term & Conditions.
3(a)(ii) Pending finalisation of repayment terms, in respect of Govt of West Bengal and Central Electricity Authority the outstanding balance are considered to be of Long Term nature by the Management.
Note 3 (b)Other Long Term Liabilities
Particulars As at 31st March 2020 As at 31st March 2019
Securities and Other Deposits 1,123.57 3,559.26Interest on Security deposits from consumers 281.22 643.57Interest Accrue and due on loan from Govt. of West Bengal 38,997.88 36,193.62
40,402,67 40,396.45
Note 3 (c)Long Term Provisions
Particulars As at 31st March 2020 As at 31st March 2019
Provision for Gratuity 9,342.58 7,432.35Provision for Leave Encasement 6,128.49 4.714.07
15,471.05 12,146.42
3(c) The Computation of Liability on account of Gratuity, Leave Encasement and Leave Travel Concession as on 31.03.2020 has been done as per AS-15 and (i) detailed computation has been shown at Note -15. The total liability was Rs. 18,073.26 lakhs out of which Rs. 15,471.06 lakhs has been shown as long term provisions and Rs. 2602.20 Lakhs has been shown as short-term provisions (refer to 4(d) as per Acturial Valuation.
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the year Ended 31st March 2020
(Rs. in Lakhs)Note 3(a)Long Term Borrrowings
64
TH
E D
UR
GA
PU
R P
RO
JE
CT
S L
IMIT
ED
NO
TE
S T
O F
INA
NC
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TE
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S F
OR
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ND
ED
31
ST
MA
RC
H, 2
02
0
No
te 3
(a)
(i)
Term
s o
f R
ep
aym
en
ts a
re a
s fo
llow
s :
Sl.
No.
Par
ticul
ars
Sec
urity
Inte
rest
Rat
eR
epay
men
t Ter
ms/
Mat
urity
Ter
ms
Cur
rent
M
atur
ities
Non
-Cur
rent
Mat
uriti
es
(A)
Fro
m P
ower
Fin
ance
Cor
pora
tion
Lim
ited
(PF
CL)
(i)
Term
Loa
n of
Rs.
269
0.C
rs fo
rdi
scha
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g va
rious
liab
ilitie
s an
dm
eetin
g th
e re
quire
men
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ario
usop
erat
iona
l exp
ense
s.
Ple
ase
See
Not
e be
low
[N
ote-
3(a)
(ii)
]10
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. pay
able
mon
thly
on
Rs.
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0 C
rore
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.a. p
ayab
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et o
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ith th
ree
year
rese
t)
To b
e re
paid
in 9
6 E
qual
Mon
thly
Inst
allm
ents
afte
r 24
mon
ths
ofm
orat
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m p
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oan
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0 ye
ars.
33,3
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1,52
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34,9
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1
232,
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33
3,47
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236,
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55
(ii)
Term
Loa
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Rs.
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Crs
for
mee
ting
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ses
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itabl
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ortg
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otal
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ompa
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mon
thly
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tere
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will
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on
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ult
To b
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qual
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orat
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FC
Lc)
Gua
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t Ben
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or S
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s pe
r te
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Not
e-3(
a) (
iii) T
erm
s of
Rep
aym
ents
are
as
follo
ws
:
Sl.
No.
Par
ticul
ars
Sec
urity
Inte
rest
Rat
eR
epay
men
t Ter
ms/
Mat
urity
Ter
ms
Cur
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atur
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-Cur
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uriti
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over
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est B
enga
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ovt.
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B)
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to 1
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rep
aym
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inal
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--39
,169
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m C
entr
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lect
ricity
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horit
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rm L
oan
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AU
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ured
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9.0
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paym
ent n
ot fi
naliz
ed--
1,18
1
1,18
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TAL
--
GR
AN
D T
OTA
L34
,923
.61
276,
656
Tota
l
(Rs.
in L
akh
s)
266,
229.
17
5,00
0.00
271,
229.
17
Rs.
in L
akh
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Tota
l
39,1
69
1,18
1
1,18
1
311,
579
65
Particulars As at 31st March 2020 As at 31st March 2019
SecuredCash Credit from United Bank of India -- 2,517.35
Overdraft Facility from State Bank of India [Note-4(a) (ii) 322.98 313.32Cash Credit From West Bengal State Co-operative Bank Ltd.[Note-4(a) (i)] 9,276.27 --Overdraft Facility from Indian Bank [Note-4(a) (ii)] 1,198.38 1,091.23
10,797.63 3,921.91
4(a)(i) Cash Credit arrangement with West Bengal State Co-operative Bank Ltd. bearing interest @ 10.75% interest p.a. is secured by first charges over Current Assets of the Company Comprising Stock & Debtors, both present & future and Equitable mortgage of Total Land of 21.650 acres in the name of Company at Mouza- Birbhanpur, JL NO. 91, Khatian No. 4859 and Dag No. 2016
(ii) Overdraft facilities from banks are secure against fixed Deposits.
Note 4(b)
Trade Payables :
Particulars As at 31st March 2020 As at 31st March 2019
For Goods & Services :
- MSME (Refer Note - 23B (3) (vi) -- --
- Others 44,060.06 44,926.05
44,060.06 44,926.05
4(b) i) Trade payable (Others) includes the following major item FY 2019-20 FY 2018-19
a) Purchase of coal [Note 4(b) (ii)] 18,534.89` 8.585.64
b) Fuel Oil 5.58 5.58
c) Stores and Spare Parts 1,783.13 1,128.71
d) Purchase of Power (Old Pre-restructered Balance as of
31.12.2018) Note - 23B(6)] 15,317.94 27,349.76
e) Purchase of Raw Water 5,826.66 5,230.02
f) Short lifting Compensation on coal 2,531.43 2,531.43
g) Other Misc Liabilities60.42 94.91
Total 44,060.06 44,926.05
4(b)(ii) The Company is having large number of transactions with various Coal Companies under Linkage / Non Linkage arrangements. The outstanding balances.Comprises off certain Debit and Credit entries with the coal companies, which are subject matter of reconciliation & confirmation. Adjustment to outstanding balance will be made as and when the said reconciliation and confirmation exercise is complete. However, management does not expect such adjustments to be material
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the year ended 31st March 2020
(Rs. in Lakhs)Note 4(a)Long Term Borrowings
66
Particulars As at 31st March 2020 As at 31st March 2019
Current maturities of Long Term Borrowing :
(Payable within 12 months from the reporting date)
(i) Term Loan from Power Finance Corporation Ltd. 33,395.83 --
ii) Term Loan From West Bengal State Co-operative Bank Ltd. 1,527.78 34,923.61 -- 2,770.83
Income Received in Advance :
Advance received against Sale of Scrap 0.81 0.81
Advance from customers 163.03 167.53
Advance from customers for coke and by-products 648.35 812.19 545.43 713.77
Advance Received from Power Sector Co's (WBSETCL) [ Note
23B(3) (ii) (a)] -- 4,500.00
Interest on Advance taken from WBSETCL [ Note 23B(3)(ii)(a)] -- 1,250.91
Interest Accrued & Date on Loan :
- From Govt. of West Bengal2,811.62 2,804.26
- From Central Electricity Authority 4,727.09 7,538.71 4,534.55 7,383.82
Interest Accrued But Not Due on Loan :
- From Govt. of West Bengal380.93 374.23
- From Power Finance Corporation Ltd. 1,220.22 1,601.15 1,397.31 1,771.54
Interest Payable on IPDS Funds 45.19 64.53
Securities and Other Deposits 1,701.23 1,769.97
Statutory Liabilities [Note-4(c) (i) ] 6,031.46 6,134.81
Other Liabilities [Note-4(c)(ii)] 80,834.01 52,314.58
133,487.55 78,629.75
4(C) (I) Statutory Liabilities includes the following: FY 2019-20 FY 2018-19
a) Interest on Electricity Duty 5,323.23 5.,332.23
b) Employee's Contribution of Provident Fund 219.33 231.99
c) Employers' Contribution to PF, Pension Fund PMGKY Scheme 210.59 258.87
d) Others 269.31 311.72
TOTAL 6,031.46 6,134.81
4C(ii) Other Liabilities includes the following
a) Railway Freights 1,089.92 956.54
b) Salaries & Wages 1,689.89 1,586.59
c) Gratuity & Leave Encasement 3,876.00 4,025.66
d) Liabilities for Capital Expenditure 10,384.44 10,771.61
e) Liabilities for Dongfang Electric Corporation [Note-4 (c) (iii) 13,090.97 12,209.72
f) Liabilities for Guarantee Fees payable to Govt. of West Bengal 4,509.28 2,254.73
g) Liabilities for Doubtful Energy Tariff Refund {Note-4 (c) (iv)} 2,126.30 2,126.30
h) Other {Note- 4(c) (v)} 44,067.20 18,401.42
TOTAL 80,834.01 52,314.57
4(c) (iii) Since the Contract with M/s Dongfang Electric Corporation has not been closed as yet due to certain unsettled claim for unresolved issues, the work done and capitalised has been considered for providing liability notwithstanding DPL's claim on account of liquidated damages and other claims as per provision of the contract.
4(c) (iv) Liabilities for Doubtful Energy Tariff Refund was created for the amcunt billed in excess over the tariff prescribed in tariff orders for the year 2000-01 & 2001-02 as the matter is still sub-judice.
4(c) (v) Other Liabilities includes Rs. 28106.87 Lakhs to M/s. WBSEDCL being Balance on Current Account an is under reconciliation [Refer Note - 23B (6)].
Notes on Financial Statements for the year Ended 31st March 2020
(Rs. in Lakhs)Note 4(c)Other Current Liabilities
THE DURGAPUR PROJECTS LIMITED
67
Notes on Financial Statements for the Year Ended 31st March 2020
THE DURGAPUR PROJECTS LIMITED
(Rs. in Lakhs)Note 4(d)Other Current Liabilities
Particulars As at 31st March 2020 As at 31st March 2019
Provision for Gratuity 1,644.73 2,942.22Provision for Leave Encashment 907.36 1,761.17Provision for Leave Travel Concession 50.12 96.53Others-short Lifting Compensation on Coal 8,122.55 8122.55
10,724.75 12,922.47
4(d) (i) Gratuity Leave encashment and Leave Travel Concession due and payable to the employees during the year 2020-21 have been shown as short term provision as per As15 (Refer Note - 15).
68
Land
[Not
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--(5
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----
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as
on 3
1.03
.202
0 w
as29
77.5
85 a
cres
. Out
of T
otal
Lan
d as
on
31.0
3.20
19 i.
e. 3
103.
634
acre
s, 1
26.0
49 a
cres
wer
e tr
ansf
erre
d to
W
BS
ED
CL
& W
BS
ET
CL,
How
ever
Dee
ds o
f Con
veya
nce
in r
espe
ct o
f Lan
d tr
ansf
erre
d of
WB
SE
DC
L an
d W
BS
ET
CL
are
yet t
o be
exe
cute
d .L
and
reco
rds
have
bee
n re
view
ed in
tota
lity
for
com
plet
ion
of
docu
men
tatio
n in
resp
ect o
f the
ent
ire la
nd in
pos
sess
ion
of th
e co
mpa
ny w
ith th
e he
lp o
f Lan
d &
Lan
d re
venu
e de
part
men
t of t
he S
tate
Gov
ernm
ent.
The
Lan
d re
cord
upd
atin
g is
stil
l in
proc
ess.
Mut
atio
n of
land
m
easu
ring
857.
10 a
cres
was
com
plet
ed o
ut o
f lan
d m
easu
ring
1067
.04
acre
s. M
entio
n of
bal
ance
land
out
of 1
067.
04 a
cres
of l
and
at M
ouza
Gop
inat
hpur
(JL-
85) i
s be
ing
purs
ued.
The
leas
eold
Lan
d as
on
31.0
3.20
19 is
4.0
39 a
cres
, out
of w
hich
3.4
49 a
cres
wer
e tr
ansf
erre
d to
WB
SE
DC
L. A
s th
ere
was
no
spec
ific
Boo
k Va
lue
of s
uch
Leas
ehol
d La
nd, t
he tr
ansf
er w
as d
eem
ed to
hav
e be
en a
t 'Z
ero'
Boo
k Va
lue.
H
owev
er, t
he re
leva
nt L
ease
tran
sfer
is p
endi
ng.
Out
of t
he e
ntire
land
of t
he C
ompa
ny, a
roun
d 44
acr
es a
re u
nder
un-
auth
oris
ed o
ccup
atio
n. T
he C
ompa
ny ta
kes
adm
inis
trat
ive
mea
sure
s w
ith th
e he
lp o
f loc
al a
dmin
istr
atio
n to
cle
ar e
ncoa
chem
ent f
rom
tim
e to
tim
e.
5(a)
(ii)
Ope
ratio
n of
By-
prod
uct a
nd B
enzo
l Pla
nt o
f CO
GP,
a s
egm
ent d
ivis
ion
as p
er A
S 1
7( S
egm
ent r
epor
ting)
has
bee
n di
scon
tinue
d or
sev
eral
yea
rs. T
he n
et v
alue
of t
he A
sset
s as
per
WD
V is
Rs.
26.
64
lakh
s T
hese
ass
ets
have
bee
n ke
pt a
t res
idua
l val
uc a
nd s
how
n se
para
tely
as
Ass
et h
eld
for s
ale
vide
ord
er N
0. 2
4(2)
-PC
/O/C
-III/
3R-0
1/20
18, d
t. 01
.02.
2019
. The
net
val
ue o
f the
sai
d as
sets
has
bee
n sh
own
at
Res
idua
l Val
ue.
* Prim
arly
Com
pris
es o
ff tr
ansf
er o
f ass
ets
with
cor
resp
ondi
ng p
rovi
sion
to W
BS
ED
CL
and
WB
SE
TC
L in
pur
suan
ce o
f res
truc
turin
g ar
rang
emen
t as
deta
iled
in N
ote
23B
(3) (
ii) (a
)
No
tes
on
Fin
an
cia
l S
tate
me
nts
fo
r th
e y
ea
r E
nd
ee
31
st
Ma
rch
20
20
TH
E D
UR
GA
PU
R P
RO
JE
CT
S L
IMIT
ED
(Rs.
in L
akhs
)
Orig
inal
Cos
tP
rovi
sion
for
Dep
reci
atio
n /
Am
ortis
atio
n / I
mpa
irmen
tN
et B
lock
Bal
ance
as
on 1
st A
pril
2019
Add
ition
durin
g th
eye
ar
Adj
ustm
ent
durin
g th
eye
ar*
Bala
nce
as o
n31
st M
arch
2020
Bala
nce
as o
n1s
t Apr
il20
19
Pro
vide
ddu
ring
the
year
Adj
ustm
ent
durin
g th
eye
ar*
Bala
nce
as o
n31
st M
arch
2020
As a
t31s
tM
arch
202
0As
at3
1st
Mar
ch 2
019
2 3
45
67
89
1911
Not
e 5(
a)F
IXE
D A
SS
ET
S (
Tan
gibl
e)
Type
of A
sset
s
1
69
Pow
er P
lant
Ele
ctrif
icat
ion
of d
iff. Z
ones
Und
er D
PL
com
man
d ar
ea (
IPD
S)
953.
63--
–953
.63
----
----
CW
IP-E
lec.
Inst
alla
tion
Pow
er S
uppl
y U
nder
WB
IDC
, C
/ CT
R11
2.32
--–1
12.3
2--
----
--D
ev. o
f inf
rast
ruct
ure
of P
ower
Sup
ply
of B
asti
Are
a10
7.57
--–1
07.5
7--
----
--C
WIP
- D
evel
opm
ent o
f Coa
l Min
es [
Not
e-5(
c) (
i)]5,
552.
4074
1.26
--6,
293.
66--
3.52
6,29
0.14
CW
IP-C
onsu
ltanc
y C
harg
es (
2nd
Fly
Ash
)/S
ILO
-(8t
h U
nit)
5.90
----
5.90
----
5.90
CW
IP -
Ann
ual C
ontr
act f
or E
xt. A
ugm
ent o
f HT
& L
T N
etw
ork
90.5
5--
–90.
55--
----
--S
ub T
otal
6,82
2.37
741.
26–1
,264
.07
6,29
9.56
--3.
526,
296.
04S
ervi
ce D
epar
tmen
tC
WIP
Tow
nshi
p R
oads
Etc
.--
----
----
----
CW
IP S
oftw
are
Dev
elop
men
t39
.94
25.3
8--
65.3
2--
--65
.32
Sub
Tot
al39
.94
25.3
8--
65.3
2--
--65
.32
Exp
endi
ture
Dur
ing
Con
stru
ctio
nN
ote
5 (d
)57
.53
----
57.5
3--
--57
.53
Gra
nd T
otal
6,91
9.83
766.
64(1
,264
.07)
6,42
2.40
--3,
526,
418.
88F
igur
es fo
r th
e P
revi
ous
Year
7,84
2.39
2,56
9.29
(0.0
6)7,
897.
57(5
1.58
)3.
607,
842.
395(
c)(i)
Tra
ns-D
amod
ar C
oal M
ine
at B
arjo
ra, D
ist-
Ban
kura
, Wes
t Ben
gal h
as b
een
vest
ed to
DP
L by
Nom
inat
ed A
utho
rity,
Min
istr
y of
Coa
l, G
ovt o
f Ind
ia w
.e.f.
1st
Apr
ril 2
015
vide
coa
l Min
e D
evel
opm
ent &
P
rodu
ctio
n A
gree
men
t (C
MD
PA) e
xecu
ted
on 0
2nd
Mar
ch 2
015
by &
bet
wee
n D
PL
and
The
Pre
side
nt o
f Ind
ia re
pres
ente
d by
Nom
inat
ed A
utho
rity.
M/s
Tra
ns-D
amod
ar M
inin
g P
vt. L
td. h
as b
een
sele
cted
as
Min
e D
evel
oper
and
Ope
rato
r (M
DO
) of t
he M
ine
and
Lette
r of A
war
d ha
s be
en is
sued
on
03rd
Mar
ch 2
016.
How
ever
Coa
l Min
ing
Ser
vice
s A
gree
men
t (C
MS
A) h
as b
een
exec
uted
on
14th
Dec
embe
r 201
8.
Pre
sent
ly, M
inin
g ac
tiviti
es li
ke D
ewat
erin
g, O
verb
urde
n ex
cava
tion,
Con
stru
ctio
n of
Dra
ins,
etc
are
bei
ng c
arrie
d ou
t thr
ough
the
MD
O in
the
Min
e. T
he e
xpen
ses
incu
rred
incl
udin
g up
fron
t pay
men
t in
resp
ect o
f Te
rms
& C
ondi
tions
of t
he C
MD
PA h
ave
been
sho
wn
as C
WIP
.* P
rimar
ily C
ompr
ises
of t
rans
fer o
f ass
ets
corr
espo
ndin
g pr
ovis
ion
to W
BS
ED
CL
and
WB
SE
TC
L in
pur
suan
ce o
f res
truc
turin
g ar
rang
emen
t as
deta
iled
in N
ote
23B
(3)(
ii) (a
).
Inta
ngib
le A
sset
s (C
ompu
ter S
oftw
are)
29.2
2--
--29
.22
5.36
3.79
--9.
1520
.06
23.8
5To
tal
29.2
2--
--29
.22
5.36
3.79
--9.
1520
.06
23.8
5F
igur
es fo
r the
Pre
viou
s Ye
ar27
.69
1.53
--27
.69
2.20
3.16
--5.
3623
.85
25.4
9
No
tes
on
Fin
an
cia
l S
tate
me
nts
fo
r th
e Y
ea
r E
nd
ed
31
st
Ma
rch
20
20
(Rs.
in L
akhs
)
Orig
inal
Cos
tP
rovi
sion
for
Dep
reci
atio
n / A
mor
tisat
ion
Net
Blo
ck
Bala
nce
as o
n1s
t Apr
il 201
9Ad
ditio
n du
ring
the
year
Adju
stm
ent
durin
g th
e ye
arBa
lance
as on
31st
March
2020
Balan
ce a
s on
1st A
pril 2
019
Prov
ided
durin
g th
e ye
arAd
justm
ent
durin
g th
e ye
arBa
lance
as on
31st
March
2020
As at
31st
March
2020
As at
31st
March
2019
23
45
67
89
1011
Balan
ce as
on1s
t Apr
il 201
9Ad
dition
s du
ring t
he ye
arAd
justm
ents
durin
g the
year
*To
tal as
on 31
st Ma
rch 20
20Ad
justm
ents
Tran
sferre
d to
Fixed
Ass
etsBa
lance
as on
31st
March
2020
Desc
riptio
n
Not
e 5(
d)E
xpen
ditu
re D
urin
g C
onst
ruct
ion
Pow
er P
lant
Ren
ovat
ion
& A
ugm
enta
tion
of T
& D
Sys
tem
57.5
3--
--57
.53
----
57.5
3
Sub
Tot
al57
.53
----
57.5
3--
--57
.53
Tota
l57
.53
----
57.5
3--
--57
.53
Fig
ures
for
the
prev
ious
yea
r29
6.64
30.5
526
9.66
57.5
3--
--57
.53
Desc
riptio
nBa
lance
as on
1st Ap
ril 2019
Addit
ions d
uring
the y
ear
Adjus
tments
during
the ye
arTot
al as o
n 31st
March
2020
Adjus
tmen
tsTra
nsfer
red to
Fixe
d Asse
tsBa
lance
as on
31st M
arch 2
020
Not
e 5(
b)F
ixed
Ass
ets
(Int
angi
ble)
Type
of A
sset
s
1
Not
e 5©
Cap
ital W
ork
in P
rogr
ess
70
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the year Ended 31st March 2020
(Rs. in Lakhs)Note 6Non - Current Investment
Investment in Equity Instruments of Joint Venture :
830000 Shares of Bengal EMTA Coal Mines Ltd. of Rs. 10/- each
fully paid up including Registration fees - Rs. 15,000/- 30.15 -- 30.15
Less Diminution in Value of Investment (30.15)
Investment in Equity Instruments of Others :
750 Shares of DP Employee' Multi Purpose 0.08 0.08
Co-Operative Society of Rs. 10/- each fully paid up.
0.08 30.23
Particulars As at 31st March 2020 As at 31st March 2019
Deferred Tax [Note 23B(5)] -- --
Particulars As at 31st March 2020 As at 31st March 2019
Rs. in LakhsNote 7DEFERRED TAX ASSETS
Note 8Long Term Loans & Advances
i) Capital Advances : -- --a) Secured considered good ( against Bank Guarantee) -- --b) Unsecured considered good : -- --
ii) Others : -- ---- --
Particulars As at 31st March 2020 As at 31st March 2019
Note 9Other Non-Current Assets
(A) Security Deposits 4.66 4.66
(B) Claims Recoverable- Unsecured considered good -- 12.25- Unsecured considered doubtful 192.00 179.95Less : Provision for Bad & Doubtful Debts 192.20 179.95
(C) Dues from Government of West Bengal- Unsecured considered good 10.89 10.89
(D) Non Current Bank Balance (Fixed Deposit) -- 200.02
(E) Input Tax Credit 30.24
45.79 227.82
Particulars As at 31st March 2020 As at 31st March 2019
71
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 10(a)INVENTORIES
(Rs. in Lakhs)
a) Raw Materials 7,841.67 3,119,24b) Raw Materials in Transit 955.26 546.83c) Finished Stock 177.44 177.44d) Stores & Spare Parts 7,229.24 7,131.97e) Stock of Capital Goods 20.27 20.27
16,223.87 10,995.75Less : Provision for slow-moving / obsolescence / theft of stores 3,540.22 12,683.65 3,682.62 7,313.13
f) Store materials under inspection 20.91 20.91 Less : Provision for rejections 20.91 -- 20.91 --g) Printing & Stationary 3.26 3.60 Less: Provision for obsolescence 0.99 2.27 0.31 3.29h) Medical Stores and Medicine 4.93 20.21 Less : Provision for obsolescence -- 4.93 0.68 19.53
12,690.85 7,335.94
10(a) (i) Provision made for Rs. 3540.22 lakhs including the stock of Coke Oven Group of Plants and Power Plant has been considered to be adequate.
10(a) (ii) The Physical verification of Stores & Spares are under process. Discrepancies if any, between Book & Physical Stock will be identified and adjusted as and when the said exercise of Physical verification will be completed. Management does not expects the adjustments to be material.
Particulars As at 31st March 2020 As at 31st March 2019
Note 10(b)Trade Receivables
Particulars As at 31st March 2020 As at 31st March 2019
Unsecured considered goodUpto Six Months 11,432.67 12,302.94Above Six Months 4,001.69 15,434.36 4,839.77 17,142.71
-Unsecured considered doubtful 5,430.99 -- 14,897.90Less : Provision for Bad & Doubtful Debts 5,430.99 -- 14,897.90 --
15,434.36 17,142.72
Note 10(C)Cash & Cash Equivalents
Particulars As at 31st March 2020 As at 31st March 2019
Cash & Cash Equivalents :Imprest Cash, Cheques in hand and Postage Stamps 1.43 1.46Balance with BanksIn Current Accounts 55.97 984.63In other earmarked balance 3.50 1.59Recurring Deposit with Schedule Bank -- 36.00Fixed Deposits with Original Maturity upto 3 months [ Note 10(c)(i)] 516.27 1,451.51Fixed Deposits with Bank underr IPDS 31.99 647.40Other Bank Balances:Fixed Deposits with Original Maturity more than 3 months [Note-10(c)(i)] 212.00 1,253.69Fixed Deposits given as lien 2,025.74 1,916.28Margin Money 1,623.66 299.36
4,471.26 6,591.91
10(c)(i) In Compliance with Regulation No. 48 namely West Bengal Electricity Regulatory Commission (Term & Conditions o Traiff) Regulation, 2011 dated 24.04.2011 issued by WBERC, the investment in STD / LTD in connection with Reserve for unforeseen Exigencies amounts to Rs. 728.97 lakhs (PY Rs. 1692.42 lakhs) are held in the form of fixed Deposits with Bank.
72
Regulatory - Assets [Note-10(e)(i)] 74,765.84 59,447.00Deposits :- Deposits with Central Excise Authority 0.24 0.24- Deposits with Port Trust & Others Govt. Authorities 0.11 0.11- Deposits with Railways - Weight Privilege 27.61 27.61- Deposits with Others 3.00 3.00Interest accrued on Short Term Deposit 79.98 99.99Rebate recei8vable on PFCL Loan 112.39 31.32UI Charges of S.L.D.C. receivable 56.77 35.35Miscellaneous balances 55.96 55.91Pre-paid Expenses 116.39 119.49Input Tax Credit under GST 20.21 30.24Materials issued in advance to V.A.Tech as loan 186.28 186.28
Interest accrued on Short Term Deposit on :IPDS Fund received from PFCL 10.71 10.71Recevable from Govt. Account 25.10 --Receivable form WBSETCL* 212.57 213.62Receivable from WBMDTCL* -- 66.12
75.673.16 60,326.99
10(e) (i) Regulatory Assets is recognized on the expectation that future economic benefits associated with it will flow to the Company as a result of actual or expected actions of the Regulator under the applicable regulatory frame work and the amount is measured reliably
The method of accounting was followed consistently as per Guidance Note of the ICAI on 'Accounting for Rate Regulated Activities.'
In Absence of Tariff order orr WBERC for financial year 2014-15 to 2018-19 the amount of claims have been accounted for on a conservative basis and worked out from actual claims preferred.
Total amount of Regulatory Assets as at the end of the financial year 2019-20 comes to Rs. 74765.84 Lakhs (PY-Rs. 59447.00 lakhs) which will be realizable through regulatory mechanism from the financial year 2020-21 & onwards.
* Pending Confirmation from the respective counter parties, the balances are taken as per the Books of the Company.
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 10(d)Short Term Loans & Advances
(Rs. in Lakhs)
Particulars
Particulars
As at 31st March 2020
As at 31st March 2020
As at 31st March 2019
As at 31st March 2019
Short-terms loans & advances (Unsecured)a) Advance to Contractors & Suppliers
- Unsecured considered good 7,465.76 7,821.92- Unsecured Considered doubtful 713.56 -- 713.56 Less : Provision for doubtful recovery 713.56 -- 713.56 --
b) Advance to Employees 117.71 140.06c) Advance to Othersd) Claims recoverable
- Unsecured considered good 350.40 354.33- Unsecured considered doubtful 7.55 7.55Less : Provision for doubtful recovery 7.55 -- 7.55 --
7,933.88 8,296.31
Note 10(e)Other Current Assets
73
Sale of Products 80,792.36 106,571.63Other operating Income [Note -11(b)] 2,788.80 1,975.79
83,581.16 108,547.42
83,581.16 108,547.42
Sale of Energy [Note -11(a) (i)] 79,823.57 105,598.44
Sale of Water [Note-11(a)(ii)] 968.79 973.19
80,792.36 106,571.63
11(a)(i) Sale of Energy represent Sale to a WBSEDCL only.
11(a)(ii) The Water Works of the Company suppliers processed and drinking water for domestic and industrial use, part of which is sold to vatious consumers also and has been shown as sale of water.
Coke conversion charges 13.02 --Sale of Residual COGP Product [Note-11(b) (i)] 1,694.32 --Sale proceeds of Fly Ash 1,071.02 345.08Misc. Revenue from Consumers of energy (Meter rent) -- 96.70Income from Wheeling Charges for Power Supply -- 201.63Meter Testing Charges -- 0.12Sale of Application Forms for Electricity Connection -- 0.01Rebate on Purchase of Power -- 1.77Penalty & Delay Fine 4.21 1,223.25Water connection Charges 1.77 1.51Other Miscellaneous Income -- 99.39On account off Adv., & Publicity 4.46 6.32
2,788.80 1,975.79
11 (b)(I) Sale of Residual COGP Product has arisen out of unaccounted stocks excavated, the corresponding production cost which had been absorbed during the years the COGP was in operation before its closure on 03.07.2015
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 11REVENUE FROM OPERATIONS
Note 11 (a)PARTICULARS OF SALE OF PRODUCTS
Note 11 (b)PARTICULARS OF OTHER OPERATING REVENUE
(Rs. in Lakhs)
Particulars
Particulars
Current Year 2019-2020
Current Year 2019-2020
Previous Year 2018-19
Previous Year 2018-19
Particulars Current Year 2019-2020 Previous Year 2018-19
Particulars Current Year 2019-2020 Previous Year 2018-19
Note 12Other Income
Interest on deposits 290.91 315.82
Vehicle Receipts 17.88 21.68
Hospital Receipts 1.39 2.61
Rent & Allied Charges [Note-12(i)] 95.04 131.01
Sale of Scraps / Stores / Render Papers 4.71 0.93
Training Fees 18.46 19.25
Excess Provision Written Back 18.83 --
Other Income [Note-12(ii)] 30.19 112.43
Old Liabilities Written Back 3.59 2,361.65
480.99 2,965.38
12(i) Rent & allied charges include license fees realised by the Company against letting out of its residential units and stalls in the township required for
providing community facilities to residents in its township.
12(ii) Other income comprises majorly receipts towards Liquidated Damages recovered from Contractor's & Supplier's Bill.
74
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 13Consumption of Raw Materials
Note 14(Increase) / Decrease in Stock
(Rs. in Lakhs)
Particulars
Particulars
Current Year 2019-2020
Current Year 2019-2020
Previous Year 2018-19
Previous Year 2018-19
Total Consumptions with adjustment for Shortage / Surplus 62,384.38 58,568.40
62,384.38 58,568.40
Opening Stock in trade - Finished goods * 177.44 177.44
Closing Stock in trade- Finished goods* 177.44 177.44
-- --
* The entire Balance of Finished Goods Stands fully provided.
Particulars Current Year 2019-2020 Previous Year 2018-19
Salaries & Wages 11,264.46 12,377.92Elctricity Allowance 224.20 277.57Leave Travel Concession –1.15 –33.53Leave Salary [Note 15(a)] 2,175.47 705.22Exgratia and Statutory Bonus 247.70 184.97Gratuity [Note 15(a)] 3,382.42 1,378.49Service Contribution (For Employees on Deputation) 1.68 2.46Company's Contribution to Provident Fund 939.01 1,017.99Company's Contribution to Pension Scheme 262.32 324.54Workmen and Staff Welfare Expenses 224.98 143.35Consumption of Medicine 34.97 13.05
18,756.06 16,392.03
15(a) Gratuity & Leave Encashment amounting to Rs. 2630.66 Lakhs & Rs. 1245.34 lakhs respectively on account of Ex-Employees of the Company retired during the year and remaining unpaid as on the closing date off the current year is included in the respective expenses over and above the actuarial valuation. Corresponding liability for the same has been disclosed under Note 4(c)as Other Liabilities.
Particulars Current Year 2019-2020 Previous Year 2018-19
Interest on Loan / Advance from :Government of West Bengal 2,818.32 2,804.26Central Electicity Authority 192.53 189.71Power Finance Corporation Ltd. 29,343.44 29,147.51United Bank of India 132.69 243.60Indian Bank 83.21 68.04West Bengal State Co-operative Bank 508.91 --West Bengal State Electricity Transmission Co. Ltd. -- 1,250.91
33,079.09 33,704.03
Note 15Employee Benefit Expenses
Note 16Finance Cost
75
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 17Depreciation / Impairment and Amortisation Expenses
(Rs. in Lakhs)
Particulars Current Year 2019-2020 Previous Year 2018-19
Depreciation / Impairment [Note 17(a)] 12,922.89 14,184.37
12,922.89 14,184.37
17(a) Depreciation in respect of Power Plant has been provided in compliance with Part B of Schedule II of Companies Act, 2013. For the remaining assets,
depreciation has been provided in accordance with Part C of the Said schedule.
76
i) Opening Balance as of 01.04.2019 : 10,374.57 6.475.23 -- 10,649.58 6,551.18 --ii) Fair Value off plan assets as of 01.04.2019 : -- -- -- -- -- --iii) Difference : 10,374.57 6,475.23 -- 10,649.58 6,551.18 --iv) Closing Balance as of 31.02.2020 : 10.374.57 `6,475.23 -- 10,649.58 6,551.18 --
B Reconciliation of Opening and Closing Balances of Obligationi) Opening Balance as of 01.04.2019 : 10,374.57 6,475.23 -- 10.649.58 6,551.18 --
ii) Past Service Cost : -- -- -- -- -- --iii) Current Service Cost : 435.84 338.57 -- 371.09 278.68 --iv) Interest Cost : 650.01 400.80 -- 809.37 497.89 --v) Actuarial Losses / (Gains) : 997.23 806.09 -- (1.455.46) (852.52) --i) Benefits Paid : -- -- -- -- -- --i) Obligation as of 31.03.2020 : 10,987.30 7,035.85 50.12 10,374.58 6,475.23 96.53
C. Reconciliation of Fair value of plan and present value of defined benefit obligation and Closing Balance of obligation
i) Present Value of obligation as of 31.03.2020 : 10,987.30 7,035.85 50.12 10,374.58 6,374.23 96.53ii) Fair Value of Plan assets : -- -- -- -- -- --
iii) Amount recognised in the Balance Sheet (i)-(ii) : 10,987.30 7,035.85 50.12 10,374.58 6,475.23 96.53
D. Expenses recognised in the period
i) Current Service Cost : 435.84 338.57 -- 371.09 278.68 --ii) Past Service Cost : -- -- -- -- -- --iii) Interest Cost : 650.01 400.80 -- 809.37 497.89 --iv) Expected return on plan assets (Gain)/Loss : -- -- -- -- -- --v) Actuarial Losses / (Gains) : 997.23 806.09 -- (1,455.46) (852.52) --iv) Expenses recognised in the period in revenue
account (i+ii+iii+iv+v) : 2,083.08 1,545.45 -- (275.00) (75.95) --
E. Assumptions
i) Discount p.a. (%) : 6.50% 6.50% 6.50% 7.30% 7.60% 7.30%
ii) Estimated rate of return on plan assets p.a. (%) : N.A. N.A. N.A. N.A. N.A. N.A.iii) Inflation rate (%) : 5.00% 5.00% 6.50% 5.00% 5.00% 7.30%
iv) Method Used : Projected Unit Credit Method Present Value Projected Unit Credit Present Value(UPC) of defined Method (PUC) of Defined
Benefit BenefitObligation Obligation
v) Mortality : 100% of IALM 2012-14 Ultimate 100% of IALM 2012-14 Ultimate
vi) Superannuation aghe : 60 years 60 years
vii) Basis of determination of expected rate of return : Market Yield on Govt. Bonds Market Yield on Govt. Bonds
F. Since there is no plan assets under both the obligations of defined benefits, the information as to reconciliation in change in plan asstes and
investment details off plan assets is not relevant.
Note : Gratuity 518.81 Lakhs transferred to WBSETCL & Rs. 951.54 lakhs transferred to WBSEDCL.
.
Particulars For the year ended on 31.03.2020 For the year ended on 31.03.2019
Provident Fund -- 939.01 1,017.99Employees Family Pension -- 262.32 324.54
Total -- 1201.34 1,342.53
Annexure to Note 15
Information pursuant to AS-15 of ICAIThe following adjustment relating to Employee Benefits have been made in the Accounts in line with Accounting Standard - 15 (revised) issued by ICAIa) Expenses under defined contribution plan have been recognised during the year as per details.
b) Particulars in respect of Post Retirement Benefit under defined Benefit Plans as per details given below:
FY 2019-20 FY 2018-19
DescriptionGratuity
(unfunded)(Rs. in Lakhs)
Leave Encashment(unfunded) (Rs.
in Lakhs)
Leave TravelConcession
(unfunded)(Rs.in Lakhs)
Gratuity(Unfunded) (Rs.
in Lakhs)
Leave Encashment(unfunded) (Rs.
in Lakhs)
Leave TravelConcession
(unfunded) (Rs.in Lakhs)
A.
77
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 18Other Expenses (Rs. in Lakhs)
Manufacturing ExpensesStock & Spares Sonsumed 2,410.72 1,747.07Freight & Handling Charges on Stores & Spares 11.22 3.19Misc. Expenses - UI Transaction of SLDC 55.56 --Repairs & Maintenance Expenses :- Buildings 72.09 132.91- Plant & Machinery 3,092.49 3,819.54- Other Assets 398.54 286.13
6,040.71 5,988.84Administrative, Selling and Other Expenses
Guarantee Fees on Loan 2,254.55 2,254.55Ash Disposal Expenses 279.89 294.69Security Staff Hired Expenses 296.94 322.99Khajana with surcharge for Land 200.50 2.10Interest on Khajana for Land 11.98 0.90Hired car charges 111.67 108.48Miscellaneous Expenses 1,022.28 1,057.07Electricity Charges 1,008.76 194.22Consumption of medical stores & theft of stores 1.21 2.03Rates & Taxes 52.75 44.57Rebate on Electricity Bills (inl. Duties) -- 1090.17Insurance 28.63 11.70Director's Remuneration & Fees :- Salary 19.55 33.44- Fees 4.25 3.93Auditor's Remuneration :i) Statutory Audit - Fees 4.48 4.40ii) Tax Audit - Fees 0.71 0.35iii) Others - Fees including Certificate 7.26 8.63Interest on Security deposit from consumers -- 125.94Handling charges on Coke 5.87 --Service Tax on behalf of Party -- 0.10Interest paid to Bright Security Services -- 2.50Obsolescence off Store & Spares provided for -- 198.38Provision for Claim Recoverable written off 12.25 --Diminution in Value off Investment 30.15 --Bad & Doubtful Debts / advances provided for -- 7,451.24
5,353.72 13,212.3811,394.43 19,201.22
Particulars Current Year 2019-20 Previous Year 2018-19
DebitEmployees' Remuneration & Benefits 0.22 --Legal Expenses 0.69 0.82General Charges 0.01 --Repairs to plant & Machinery (0.94) --Depreciation -- 0.63Workmen & Staff Welfare Expenses 0.07 --Consumption of Stores & Spare Parts (0.01) --Consumption of Raw Materials 44.44 --Miscellaneous Expenses (Incl. Ash. Disposal) (0.09) 196.79Printing & Stationary 3.60 --
Total 48.00 198.24Credit
Income from U.I.T. Transactions (24.36) --Interests cn ST 8..03 --Miscellaneous Income (3.40) (25.60)Employee's Remuneration & Benefits -- 8.08General Charges -- 30.52Repair to Plant & Machinery -- 22.32Consumption of Stores & Spare Parts -- 1.10P & L Adjustment (Purchase of Raw material) -- 704.45
Total (19.73) 740.87
Net Total Dr. / (Cr.) 67.73 (542.63)
Particulars Current Year 2019-20 Previous Year 2018-19
Note 19PRIOR PERIOD ADJUSTMENTS
78
i) Claims under Different Pending Suits 100.97 383.18 3 different cases pending with Suppliers/ Bankers
ii) Sales Tax & CST demand pending in Appeal 110.83 110.83 Pending with Asstt. Comm. Of Commercial Taxes(Appeal) / Durgapur
iii) Service Tax 793.51 272.93 Appeal Pending with Central Excise Authority
iv) Central Excise Duty 2,976.15 2,837.85 Pending with CESTAT, Kolkata
v) Dong Fang Electric Corporation 10,972.56 10,481.18 Refer Note Below
Total 14,954.01 14,085.96
.There is a Claim on the Company from M/s Dong Fang Electric Co. Ltd. China amounting to Rs. 10972.56 Lakhs on account of Construction of 1x300 MW..7 which is outside the scope of contract and hence has not been acknowledged by the Company. This amount includes a claim in Foreign Currency Dollars also which has been converted in Indian Rupees while arriving at the amount as stated above. At present the Company is in the process of ..ssions with the Turnkey Contractor where in the above claims have been contested by the Company.
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note 20Ceptional Items
(Rs. in Lakhs)
Particulars Current Year 2019-2020 Previous Year 2018-19
Particulars Current Year 2019-2020 Previous Year 2018-19
Amount Realizable through Tariff & APR 74,765.84 59,447.00
Less Existing Regulatory Assets Crystallised in Tariff
for FY 2018 - 19 59,447.00 42,025.00
Regulatory Income [Note-20(i)] 15,318.84 17,422.00
i) A sum of Rs. 15318.84 Lakhs (PY - Rs. 17,422.00 Lakhs) has been considered as per WBERC regulation in the accounts of FY 2019-20 as Income
Receivable through Regulatory Mechanism on account of Fuel & Power Purchase Cost Adjustment (FPPCA) and Annual performance Review (APF)
for the FY 2018-19 for which necessary petition has to be submitted to WBERC.
Profit After Tax (39,223.59) (16,430.04)
Weighted Average Number of Shares 15,258.262 13,010.000
Basic Earnings per share (257.06) (126.29)
Note 21EARNINGS PER SHARE
Note 22Contingent Liabilities for Claims Against the Company not Acknowledged as Debts
Sl.No.
ParticularsCurrent Year
2019-20Previous Year
2018-19Remarks
79
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
(Value's in Lakh)Worksheet to Note - 13(i) Quantity & Value of Raw Materials Consumed
Power PlantCoal 15,48,848.51 MT Rs.60,195.59 16,20,374.00MT Rs.56,660.92Oil 1858.783 KL Rs. 913.45 2141.941 KL Rs. 925.76Less (Surplus) / ShortageCoal 17,459.70MT Rs. 678.60 9837.96MT Rs. 344.01Oil 0.0050 KL Rs. 0.00 0.0050 KL –0.00
ConsumptionCoal 15,66,308.21MT Rs. 60874.29 16,30,211.96 MT Rs. 57,004.93Oil 1858.788 KL Rs. 913.46 2141.936 KL Rs. 925.76
Consumption (combined) Rs.61,787.74 Rs.57,930.69
Water Works
Raw Water 29,911.437 Mltr Rs. 596.64 30,512.899 Mltr Rs. 637.71
Total Value Rs. 62,384.38 Rs. 58,568.40
Particulars As at 31st March 2020 As at 31st March 2019
Quantity Value Quantity Value
Stock at the Beginning of the Year 3,119.24 3,779.16
Add : Purchases 56988.23 47,928.44Freight 8,990.84 9.134.53Handling Charges 1,127.75 67,106.81 845.51 57,908.48
70,226.05 61,687.64Consumption 52,384.38 58,568.40
Stock at the End of the Year 7,841.67 3,119.24
Particulars As at 31st March 2020 As at 31st March 2019
(II) Consumption of Raw Materials
80
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
(Value's in Lakh)Worksheet
(I) Consumption of Stores & Spares
Stock at the Beginning of the Year\Add / (Less) Adjustments (272.90) (26.88)
6,854.50 7,481.80
Add : Purchases 2,953.83 1,524.81Foreign Spares -- -- -- --Customs & Clearing Charges -- 2,953.83 -- 1,524.81
Less : Consumption 2,410.72 1,747.07Less : Consumption (Ash Disposal) 173.91 132.14
Stock at the end of the Year 7,223.70 7,127.40
7,127.40 7,508.68
Particulars As at 31st March 2020 As at 31st March 2019
Postage, Telegram & Telephone 8.93 23.45Printing & Stationary 8.88 16.80Travailing Expenses 7.40 8.64Motor Vehicle Expenses (Including Vehicle Insurance) 5.09 8.83Advertisement & Publicity 32.50 16.69Legal Expenses 14.68 47.58Bank Charges (Including Remittance Charges) 29.45 16.77General Charges 915.35 918.32
Total 1,022.28 1,057.07
* In Terms of Notification issued by Ministry of Environment & Forests dated 3rd Novemeber, 2009 in respect of Utilization of Fly Ash it is stated that for unit No. 7 & 8 the dry Ash produced during generation is entirely disposed of to the Bricks and Cement industries. The wet ash produced from Unit No. 7 is Collected in Ash Pond and later disposed of free of cost for use in road construction by NHAI.
Particulars As at 31st March 2020 As at 31st March 2019
(II) Miscellaneous Expenses
81
NOTE - 23A
Notes Forming parrt of Financial Statements for the year ended 31st March, 2020
1. CORPORATE INFORMATION
2. SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Preparation of Financial Statements :
b. Use of Estimates :
c. Fixed Assets :
The Durgapur Project Limited (The Company) is a multi - unit, multi-product West Bengal State Govt.
Enterprise and incorporated under the provisions of the Companies Act, 1956. The Company comprises
of Power Station, Coke Oven Group of Plants (COGP) and Water Works, all three being different profit
centers located at Durgapur, West Bengal.
The operation of the Company are government by the Companies Act, 2013 and the Electricity Act, 2003
and various regulations and / or policies framed thereon by the appropriate authorities. Accordingly, the
financial statenet have been prepared in terms thereof and the Electricity Act, 2003 have been followed
and complied with wherever they are inconsistent with the provisions of Companies Act, 2013
The Financial statements are prepared under the historical cost convention on accrual basis of accounting
unless otherwise stated, in accordance with the Generally, Accepted Accounting Principles in India, and
the relevant provisions of the Companies Act, 2013 including accounting standards notified there under.
The preparation of the financial statements in conformity with Generally Accepted Accounting Principles in
India requires the management to make estimates and assumptions that affect the reported balances of
assets and liabilities and disclosures relating to contingent liabilities as at the date of financial statements
and reported amounts of revenue and expenses during the reported period. The difference between the
actual results and estimates are recognized in the period in which the results are known or materialized.
a) Fixed assets are stated at cost of acquisition less depreciation.
b) Land is valued at cost of acquisition and subsequent development thereon.
c) In the case of commissioned assets, where final settlement of bills with Contractors are pending,
capitalization is made on the basis of provisional liabilities subject to necessary adjustment in the year of
final settlement.
d) Cost off Meters is capitalized to the extent off Credit raised to the Consumers for electricity in case off
meters purchased by consumers.
82
d) Borrowing Costs :
e) Depreciation / Amortization :
f. Capital Work - in Progress :
g. Impairment off Assets :
h. Reserve :
i. Investment :
j. Inventories :
To the extent that the funds are borrowed specifically for the purpose of acquisition of qualifying asset, the
identified amount of borrowing cost reduced by any income on temporary investment of those borrowing is
capitalized as part of the cost of the qualifying asset. Capitalization of borrowing costs ceases when
substantially all the activities necessary for the preparation of the Tangible Assets for its intended use are
complete.
a) The assets used at Power Plant are depreciated under Straight Line Method (Pro-rata basis) in compliance
with part B of Schedule II to the Companies Act, 2013 whereby the provisions of Clause 5.6.2 (ii) of
Regulation No. - 48 dated 29/04/2011 published by the WBERC under the Electricity Act, 2003 are
applicable.
b) Other Tangible Assets except Land and Developments there on, are depreciated on Straight Line Method at
the rates prescribed in Part C of Schedule 'II' to the Companies Act, 2013.
a) Capital Work-in-prrogress is stated at cost, incurred during pre-operative / pre-commissioning period.
b) Transfer to Fixed Assets from Capital Work -in Progress is made on the basis of completion certificates and
/ or 'Put' to use' certificates issued by the competent officials.
c) Materials which are issued for construction works at sites are fully charged to Capital Work-in-progress.
d) Interest on Loan from Financial Institutions utilized for Capital Works is capitalized up to the stage of
capitalization. Once the Work is capitalized, subsequent related interest is charged to Revenue A/c.
Expenses common to operation and construction activities are charged to statement of Profit and Loss.
The Carrying cost of Assets of Cash Generating Units is reviewed at each Balance Sheet date. An asset is
considered as Impaired when the carrying cost of Asset exceeds its recoverable value. An impairment loss
is charged when the asset is identified as impaired. Accordingly, such computation is made for discounted
cash flow generation for five years for Water Works and for ten years for Coke Oven Group of Plants &
Power Plant.
a) Subsidy received on account of fixed assets is transferred to Capital Reserve. Adjustment is made by
transferring to Profit & Loss account annually over the the lives of the respective assets.
b) Amount is credited to 'Reserve for Unforeseen Exigencies' every year in terms of WBERC norms.
Long term investments in shares are reflected at carrying cost unless there is diminution in value thereof.
i) Stock of Raw Materials (Coal & Fuel Oil) is valued at Landed Cost on Weighted Average Basis.
ii) Stock of Finished Goods is valued in the following manner :
i) Valuation is made at lower of cost or net realizable value for Hard Coke only.
ii) Stocks of Tar and Mixed Coke are valued at net realizable value.
iii) Closing Stock of Stores and Spare Parts etc. are value at Weighted Average Cost.
83
iv) Coal in ovens for processing Coke as at the end of the year is not taken into consideration.
v) In respect of Coal & Oil, the value of year end stock is derived after taking into consideration the aggregate
cost of opening stock and materials purchased during the year and after adjustment of consumption and
shortage.
vi) Quantity of closing stocks of Coal & Coke is based on Contour Survey Method.
vii) Stock of Printing & Stationery and Medicine are taken on the basis of year -end Physical Verification at last
purchase price.
i) The foreign currency transactions are accounted for at the equivalent rupee realized / incurred as per advice
from bankers.
ii) The foreign currency transactions remaining unsettled at the year -end are translated at the rates prevailing
at the end of the year and the difference is duly adjusted.
iii) Fixed assets acquired / constructed for payment in foreign currency is capitalized considering loss or gain
due to exchange rate fluctuation till the date of bringing the assets in use / capitalized. However fluctuation
in foreign exchange rate subsequent to use / capitalization of the assets having impact on residual payable
amount has been adjusted with value of assets in terms of notification no. G.S.R. 913(E) dt. 29.12.2011 of
Ministry of Corporate Affairs.
I) Sale of Electricity is recognized on the basis of bills raised for the energy supplied to the consumers.
II) It also includes the amount expected to be receivable against DPL's claim for APR for the preceding year
computed in a realistic manner based on the provisions of relevant regulations and operating norms
prescribed by the Hon'ble WBERC . In absence of APR order for the specific year, a provision on the
lower side is booked to revenue in each year.
III) It also includes amount receivable in installment towards arrear dues from consumers due to increase in
tariff rates as per order issued by WBERC.
IV) Delay payment surcharge is accounted for on realization basis.
I) Sale of Coke and by-prroducts are accounted for on the basis of bills raised on clearance from Factory
premises.
II) Sale of Coke oven gas is accounted for on the basis of bills raised for consumption of gas as recorded in
the respective meters installed for the purpose.
III) Revenue from operation in respect of Coke Oven includes conversion charges billed for dispatch of
Coke produced under Conversion agreement with major steel plants and other organizations as per
terms and conditions of the respective agreements.
I) Sale of water (both process & drinking) is accounted for on the basis of bills raised for the quantity
actually supplied during the year.
II) Delay payment surcharge is accounted for on realization basis
k. Foreign Currency Transaction :
I. Revenue Recognition :
i) Sale of Electricity :
ii) Sale off Coke Oven Products :
iii) Sale of Water :
84
m) Other Income :
n) Claims for Liquidated Damage / Price Escalation :
o. Other Claims :
p. Retirement & Employees' Benefit :
Defined Contribution Plan
Defined Benefit Plan
q. Prior Period, Extra - Ordinary Items & Write Back of Liability :
r. Miscellaneous Expenditure to the extent not written off or Adjusted :
s. Segment Information :
i) Sale of Scrap is recognized on the basis off realization.
ii) Interests on bank deposits are recognized on accrual basis.
iii) Dividend received is accounted for when the right to receive such dividend is established.
iv) Amount realized on account of other misc. income is recognized on realization basis.
Claims for liquidated damages are accounted for as and when these are deducted and / or considered
recoverable by the Company. These are adjusted to the capital cost or recognized in Statement of Profit and
Loss ( as the case may be) on final settlement. Suppliers' / Contractors' claims for price escalation are
accounted for to the extent such claims are accepted by the Company.
i) Claims with the Railway for missing / misdirected Wagons and those with Transport contractors and suppliers
are accounted for as and when the claims are preferred.
ii) Claims lodged with the Insurance and Customs Authorities are accounted for on settlement / realization
basis.
Retirement liabilities are in the nature of defined contribution plan and defined benefit plan.
Provident Fund and Employees' Family Pension belong to this category where the Enterprise has no other
obligation to pay except for the annual contribution made to concerned Trustees. These are accounted for in
terms of accrual basis.
Gratuity, Leave Salary & Leave Travel Concession relate to this plan. Under such scheme, employees are
entitled to defined benefit which is based on actuarial calculation under Projected Unit Credit Method in due
cognizance of various factors of uncertainties i.e. death probability, inflationary consequences,premature
retirement and other unforeseen predicaments.
a) Adjustments which arise due to omissions and errors in booking income and expenditure i.e. non-adjustment
of rebate in power bills, delay in raising / waiving annual guarantee / surcharge bills etc., in the respective
previous years are passed through Prior Period Adjustment Account. Income & Expenses relating to Prior
Period less than Rs. 5.00 lakhs is being charged to th Current Year Income & Expenses accordingly.
b) Income & Expenditure of extra - ordinary nature are booked in the current year as per pronouncement of the
relevant accounting standard.
c) Stale Cheque Liability existing in the books for more than 10 years is written back on yearly basis unless other
wise decided.
Share Issue Expenditure is amortized over a period of 10 (ten) Years..
a) The Company's primary segments consist of activities of Power Generation, Manufacture of Coke & By-
products and Processing of Raw Water.
85
b) Inter-Segment transfers are valued at rates approved by the Board of Directors.
c) The Company also maintains common service and central workshop units for which apportionment of
common expenses and depreciation to the various segments have been done at pre-determined rates as
approved by the management.
d) Unallocated interest on Govt. Loans is apportioned to various segments on the basis of gross average fixed
assets.
The amount received from consumers of power at the time of providing new connections or augmentation of
load towards the cost of service connection including supervision charge as per the regulatory provisions in
the terms of Notification No - 53 / WBERC st-02/04/2013 issued by WBERC is shown as Consumers
Contribution
Liabilities for purchase and other expenses are considered in the accounts on the basis of :
a) Goods Received Notes.
b) Certificate Bills of Contracts for goods or services as available.
c) Certificates from executing authorities for services rendered by various agencies received within 15th June
of the succeeding accounting year.
Under circumstances of any present obligation arising as a result of a past event with a probable outflow of
resources to settle the obligation for which a reliable estimate can be made, provision is made in the
accounts towards such obligation.
Provisions are made in respect of debtors and advances to the extent considered doubtful Receivable from a
Government Company or Department is not considered doubtful. Adequate provisions are also made
against non-moving and obsolete inventories.
Contingent liability represents financial liability which would arise only on the happening off a future event
that cannot be assessed at present. Accordingly such liabilities are not recognized but disclosed in the notes.
Contingent Assets are not recognized in the Financial Statement.
Deferred Tax is recognized on timing differences being the differences between the taxable income and the
accounting income that originate in one period and capable or reversal in one or more subsequent periods.
Deferred tax is measured using the tax rates and the tax laws enacted as at the Balance Sheet Date.
Plant & machineries and other assets including Stores which are prone to pilferage and fire are covered
under insurance for such amount as the management deems proper.
t. Consumers' Contribution :
u. Liability :
v. Provisions, Contingent Liabilities & Contingent Assets :
w. Deferred Taxation :
x. Insurance :
86
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note -23BOther Disclosures(1) Related Party Disclosure
(Rs. in Lakhs)
a) Key Management Personnel
b) Bengal EMTA Coal Mines Ltd. (Jointly Controlled Entity)
c) Investment in subsidiary company - 500 Shares of Rs. 1000/- each in DPL Coke Oven Ltd.
(2) Capital Commitments
(3) (i)
(3) (ii)
Name Designation Nature of Transaction Transaction Value
Shri Ashis Saha Managing Director Remuneration 19.55
Shri P. K. Mitra Advisor (F & A) & CFO Remuneration 8.40
There has been no transaction with the key Management Personal except payment of Salary & Other Emoluments as per terms of employment.
i) Purchase of Coal for Power Plant - Nil (PY - Nil)
ii) Investment - Opening holding (8,30,000 shares)
- Previous year (8,30,000 shares)
- Closing holding (8,30,000 shares)
An Amount of Rs. 9.49 lakhs and Rs. 5.00 lakhs has been written of in respect off Advance given to and Investment made in DPL Coke Oven Ltd. respectively.
There are no pending Capital Commitment at the year end.
The Company has accumulated losses and its Net Worth has been negative. However, all round
efforts including running of Unit No 7 &8 simultaneously to its full potential are being made to turn the
negative net worth into positive. The management is optimistic about the conversion of loan received
from GoWB and accrued interest thereon into equity by the State Government. In the opinion of the
management, the existence of the company on a going concern basis will not at all be affected in the
foreseeable future. DPL is currently under a Restructuring process in terms of Notification vide no.
319/PO/O/C-IV/1E-60/13 (Part VA) dated 08.12.2017 followed up by a subsequent notification no.
328/PO/O/C-IV/1E-60/13 (Part VA) dated 26.12.2018 issued by Govt. of West Bengal. While part of
restructuring i.e. Distribution and Transmission activities have been transferred to WBSEDCL &
WESETCL as Contemplated, operational restructuring and financial restructuring are in process.
Hence, the management does not envisage any issues on the 'Going Concern ' assumptions in
application and preparation of its financial statements.
DPL has been restructured where upon inter alla :
(a) The Distribution and Transmission functions alongwith its associated assets liabilities and human
87
resources have been transferred to West Bengal State Electricity Distribution Company Limited (WBSEDCL)
and West Bengal State Electricity Transmission Company Limited (WBSETCL) respectively w.e.f.
01.01.2019. Accordingly the Assets and Liabilities at book values as on 31.12.2018 in respect of Distribution
and Transmission activities had been identified and held in trust under the respective applicable natural
heads and classification as on 31.03.2019. These Assets & liabilities were transferred subsequently on
mutual consent basis to respective Transferee Companies, by way of Slump Transaction Agreement with
WBSETCL executed on 11.04.2019 and that with WBSEDCL on 30th September 2019 with purchase
consideration of 28.99 Crores and Rs. 101.53 Crores respectively.
The Company will become a wholly Owned Subsidiary of West Bengal Power Development Corporation
Limited (WBPDCL)
Balances under Capital Advances, Advances to Contractors & Suppliers, Trade Receivables, Deposits &
Other Receivables . Trade payables, Security Deposits are under reconciliation / confirmation & respective
consequential adjustment.
The Company has bifurcated its assets & liabilities into Current & Non - Current based on the judgement made
by the management and expected realisation / payment of the relevant asset & liabilities.
In the opinion of the Board of Directors and best of their knowledge and belief the assets other than Fixed
Assets & Non-current Investments have a value on realisation in the ordinary course of business not less than
the amount at which they are stated in the Balance Sheet.
The Company has not received information from vendors regarding their status under Micro, Small & Medium
Enterprise Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year and
together with interest paid / payable under this Act Could not be given. However , Identification of vendors
falling under MSME Act is under process.
During the financial yearr 2019-20 Missing and Misdirected Coal Wagons have been accounted for on the
basis of Bill / Railway Receipt. The amount of claim on account of Missing Coal wagons on Railway as on
31.03.2020 was Rs. 8847.32 lakhs and the amount of Railway's Claim on DPL for Misdirected Wagons as on
31.03.2020 was Rs. 18490.75 lakhs . Accounting Adjustment (if any) will be made on completion of final
reconciliation and confirmation of balances. Claim on account of Grade Sllipage ( including Stones &
Boulders) on Coal Companies as on 31.03.2020 considered through joint sampling to the extent of Rs. 37.06
lakhs is in the process of settlement.
The short lifting compensation, if any under Fuel Supply Agreement for 2019-20 is yet to be determined
through a process of reconciliation and confirmation between the Durgapur Projects Limited and Coal
Companies. The necessary accounting adjustments willl be made as and when the said process of
reconciliation and confirmation is completed. Management does not expects the same to be material in value.
(b)
3(iii)
3(iv)
3(v)
3(vi)
4(a)
4(b)
88
5.
6.
7. Quantitative Information
Considering the accumulated losses and absence of reasonable certainty as regards the future taxable
profits, no deffered tax arises.
Pending reconcillation with WBSEDCL with regard to transactions both in the past as well as current and
amount received from WBSEDCL on adhoc basis, the amount shown under 'Trade Receivables' has not been
netted off with Liabilities.
Particulars Actual Production Actual Sales
2) Power Planti) Energy 2231.728 Mkwh 2343.22Mkwh 1982.728Mkwh 2287.473Mkwh
3) Water Worksi) Process Water 10596.36 Mltr 11184.13 Mltr 10833.44 Mltr. 11302.27Mltr.ii) Drinking Water 18130.59 Mltr 18718.52.Mltr 17003.016 Mltr 17187.79 Mltr
N.B.Sale of Water includes Inter Plant Transfer
31st March 2020 31st March 2019 31st March 2020 31st March 2019
89
1.S
egm
ent R
even
uei)
Ext
erna
l Tum
over
(Inc
ludi
ng O
ther
Ope
ratin
g In
com
e80
,899
.06
107,
561.
931,
707.
33--
974.
7698
5.49
83,5
81.1
610
8,54
7.41
ii) In
ter
Seg
men
t Sal
es--
446.
76--
--2,
189.
792,
275.
92(2
,189
.79)
(272
2.68
)--
--
Tota
l80
,899
.06
108,
008.
681,
707.
33--
3,16
4.55
3,26
1.41
(2,1
89.7
9)(2
,722
.68)
83,5
81.1
610
8,54
7.41
2. S
egm
ent R
esul
t :
Pro
fit (
Loss
) be
fore
Inte
rest
and
Tax
es(2
0,36
0,76
)4,
810.
05(1
,515
.95)
(3,7
37.9
5)(4
75.2
3)(1
,737
.29)
----
----
(22,
351.
94)
(665
.19)
Less
Inte
rest
Exp
ense
31,3
75.6
132
,365
.34
832.
8883
0.51
----
----
----
32,1
90.4
933
,186
.85
Add
: In
tere
st In
com
e--
----
----
----
----
----
Add
: E
xcep
tiona
l Ite
m15
,318
.84
17,4
22.0
0--
----
----
----
--15
,318
.84
17,4
22.0
0
Tax
Exp
ense
:
(1)
Cur
rent
Tax
----
----
----
----
----
----
(2)
Def
erre
d Ta
x--
----
----
----
----
----
--
Pro
fit (
Loss
) af
ter T
axes
(36,
399.
53)
(10,
124.
29)
(2,3
48.8
2)(4
,568
.46)
(475
.23)
(1,7
37.2
9)--
----
--(3
9,22
3.59
)(1
6,43
0.04
)
3.S
egm
ent C
apita
l Em
ploy
ed
Seg
men
t Ass
ets
335,
603.
0836
8.59
5.95
2,06
8.21
2,34
4.68
1,21
7.72
673.
34--
--29
,313
5,48
8.81
368,
202.
5037
7,10
2.77
Seg
men
t Lia
bilit
ies
384,
102.
7839
0,28
9.10
5,71
1.79
5,24
0.30
8,28
2.93
7,15
7.88
----
133,
502.
0996
,835
.28
531,
599.
6049
9,52
2.54
Cap
ital E
xpen
ditu
re1,
759.
413,
595.
15--
----
----
--25
.48
57.6
81,
784.
893,
652.
83
Dep
reci
atio
ns a
nd A
mor
tisat
ion
12,5
99.7
413
,483
.81
260.
7163
4.16
4.71
4.31
----
57.7
462
.08
12,9
22.8
914
,184
.37
Non
-ca
sh e
xpen
ses
othe
r th
an
----
----
----
----
----
----
Dep
reci
atio
n a
nd A
mor
tisat
ion
Not
e : T
here
ae
no g
eogr
aphi
cal
segm
ents
off
the
com
pany
as
the
com
pany
ope
rate
s in
one
geo
grap
hica
l loc
atio
n
TH
E D
UR
GA
PU
R P
RO
JE
CT
S L
IMIT
ED
SE
GM
EN
T R
EP
OR
T2
3C
. In
form
atio
n g
ive
n in
acc
ord
an
ce w
ith th
e re
qu
ire
me
nts
of a
cco
un
ting
Sta
nd
ard
17
on
Se
gm
en
t re
po
rtin
g
A.
Th
e C
om
pa
ny
ha
s th
ree
Prim
ary
Bu
sin
ess
Se
gm
en
ts V
iz :
i)
Po
we
r Pla
nt r
ep
rese
ntin
g g
en
era
tion
of P
ow
er
B. U
na
lloca
ble
re
pre
sen
ts a
ll ite
ms
of i
nco
me
an
d e
xpe
nd
iture
wh
ich
ca
nn
ot b
e a
lloca
ted
to a
ny
pa
rtic
ula
r se
gm
en
ts.
ii)
Co
ke O
ven
Gro
up
of P
lan
ts re
pre
sen
ting
Co
ke O
ven
ba
tte
rie
s b
usi
ne
ssiii
)W
ate
r Wo
rks
rep
rese
ntin
g p
urific
atio
n a
nd
su
pp
ly o
f wa
ter t
o o
the
r pla
nts
& to
wn
ship
Po
we
r P
lan
t
31st
Mar
ch
2020
31st
Mar
ch
2019
Co
ke O
ver
Gro
up
o
f P
lan
ts
31st
Mar
ch
2020
31st
Mar
ch
2019
Wa
ter
Wo
rks
31st
Mar
ch
2020
31st
Mar
ch
2019
Inte
r S
eg
me
nt
Elim
ina
tion
s
31st
Mar
ch
2020
31st
Mar
ch
2019
Un
-Allo
cab
le
31st
Mar
ch
2020
31st
Mar
ch
2019
Co
nso
lida
tes
Tota
l
31st
Mar
ch
2020
31st
Mar
ch
2019
Pa
rtic
ula
rs
90
THE DURGAPUR PROJECTS LIMITED
Notes on Financial Statements for the Year Ended 31st March 2020
Note : 24
Note - 25
Note - 26
The outbreak of Coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance
and slowdown of economic activity. Measures taken to contain the spread off the virus, Including travel
bans, quarantines, social distancing and closure of non-essential services have triggered significant
disruptions of business worldwide, resulting in an economic slowdown. On 24th March 2020 the
Government of India had ordered a nationwide lockdown for 21days which got further extended
subsequently.
In assessing the recover ability of Company's assets such as Loans, Trade Receivable, Inventories etc. the
Company has considered internal and external information up to the date off approval of these financial
results. The company had evaluated impact of this pandemic on its business operations and based on its
review and current indicators of future economic conditions, expects to recover the carrying amount of the
assets.
Pursuant to the execution of slump sale agreement wherin the transmission and distributions business of
the company and its related assets, liabilities, earning capacity and related expense has been transferred
to WBSEDCL and WBSETCL and as such the current year figures are not comparable with that of previous
year.
Previous Year's Figures have been re-grouped / re-arranged, wherever considered necessary.
(Goutam Biswas) (Pranb Kumar Das Sharma) In Terms of our Report of Even Date
(Managing Directorr Director For M C Bhandari & Co.
Chartered Accountants
(FRN- 303002E)
(P. K. Mitra) (Neeraj Jain)
Advisorr (F&A) & CFO Partner
Membership No. 064393
UDIN : 20064393AAAABDU6195
Dated : 27th November , 2020
Place : Kolkata
91
Form No. MGT-11Proxy Form
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014 as amended]
CIN : U40102WB1961SGC025250
Name of the Company: THE DURGAPUR PROJECTS LIMITED
Registered office: ADMINISTRATIVE BUILDING, DURGAPUR-713 201
_____________________________________________________________________________________
Name of the member (s) :
Registered address:
E-mail Id:
Folio No/ Client Id:
OP ID:
_______________________________________________________________________
I/We, being the member (s) of …………….. shares of the above named company, hereby appoint
1. Name : ………...............................................................................................………..
Address:
E-mail Id:
Signature:……………….. , or failing him
2. Name : ……...............................................................................................…………..
Address:
E-mail Id:
Signature:……………….. , or failing him
92
3. Name: …………................................................................................................................................……..
Address:
E-mail Id:
Signature:……………….. or failing him
As my / our proxy to attend and vote (on a poll) for me / us and on my/our behalf at the ….................……..
Annual general meeting / Extraordinary general meeting of the company, to be held on the ……..........…………
day of …………....… at ……….....…… a.m. / p.m. at …………........…. (Place) and at any adjournment thereof in
respect of such resolutions as are indicated below:
Resolution No.
1………...................................………………..
2 ………....................................……………….
3……....................................…………………..
Signed this …………….........……………………day of ………...........…………………. ….20…………
Signature of shareholder
Signature of Proxy holder(s)
Note: This form of proxy in order to be effective should be duly completed and deposited at the
Registered Office of the Company, not less than 48 hours before the commencement of the
Meeting.
AffixRevenue
Stamp
93
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