1 34th Annual General Meeting of THDC India Ltd. held on 20th September, 2022 at New Delhi 2 CONTENT THDCIL ANNUAL REPORT 2021-22 Corporate Overview • Board of Directors 5 • Corporate Information 7 • Project Portfolio 8 • Chairman’s Speech 9 • Our nationwide Presence 24 • Key Financial Performance Highlights 26 • Director’s Brief Profile 30 • Business Sustainability Report – Capital Creation in Sustainable way 2021-22 32 • Financial Capital 33 • Social and Relationship Capital 35 • Natural Capital 37 • Intellectual Capital 39 • Tangible Capital 40 • Human Capital 44 Directors’ Report 2021-22 and its Annexures • Directors’ Report 2021-22 48 Annual Return Link • Report on Corporate Governance (Annexure – I) 71 • CEO/CFO Certification 86 • Certificate on Corporate Governance 87 • Corporate Social Responsibility Report (Annexure – II) 88 • Management Discussion and Analysis Report (Annexure – III) 101 • Energy conservation measures, Technology Innovation, Adaptation, Absorption 114 and foreign exchange earnings and outgo (Annexure – IV) • Business Responsibility Report (Annexure – V) 122 • Secretarial Audit Report (Annexure – VI) 145 Financial Statements 2021-22 Standalone 1. Financial Statement 2021-22 149 2. Independent Auditors’ Report 211 3. Comments of the C&AG of India & Management Reply 222 Consolidated 4. Financial Statement 2021-22 225 5. Independent Auditors’ Report 293 6. Comments of the C&AG of India & Management Reply 299 3 CORPORATE OVERVIEW BOARD OF DIRECTORS CORPORATE INFORMATION KEY FINANCIAL PERFORMANCE HIGHLIGHTS PROJECT PORTFOLIO CHAIRMAN'S SPEECH OUR NATIONWIDE PRESENCE DIRECTOR'S BRIEF PROFILE 4 BOARD OF DIRECTORS CHAIRMAN & MANAGING DIRECTOR Shri Rajeev Kumar Vishnoi Chairman & Managing Director (From 06.08.2021) FUNCTIONAL DIRECTOR Shri J. Behera Director (Finance) NOMINEE DIRECTORS Shri Jithesh John Shri Anil Garg Shri Ujjwal Kanti Shri Jaikumar Econominc Adviser, MoP Principal Secretary (Irrigation Bhattacharya Srinivasan GoI Nominee Director & Water Resources Deptt.) Nominee Director Nominee Director GoUP Nominee Director (From NTPC Ltd. NTPC Ltd. 26.04.2022) (from 17.08.2022) 5 INDEPENDENT DIRECTORS Dr. JayaPrakash Naik B. Smt. Sajal Jha Shri Kesridevsingh D. Jhala Independent Director Independent Director Independent Director From 10.11.2021 From 10.11.2021 From 28.03.2022 BOARD OF DIRECTORS-SUPERANNUATED Shri D.V. Singh Shri Rajpal Shri Vijay Goel Chairman & Managing Senior Adviser, MoP Director (Personnel) Director GoI Nominee Director (Till 31.10.2021) (Till 30.04.2021) (Till 30.04.2021) Shri T. Venkatesh Shri Anil Kumar Gautam Add. Chief Secretary (Irrigation, Nominee Director Water Resource & Waste Land Deptt.) NTPC Limited GoUP Nominee Director (Till 31.05.2022) (Till 31.01.2022) 6 CORPORATE INFORMATION Registered Office Company Secretary & Compliance Officer THDC India Limited Ms. Rashmi Sharma CIN:U45203UR1988GOI009822 Ganga Bhawan, Pragatipuram, Bhagirathi Bhawan (Top Terrace) By-Pass Road, Rishikesh-249201 Bhagirathipuram, Tehri Garhwal – 249001 Contact No. (0135) 2439309 & 2473403 Contact No. (0135) 2473403, 2439309 Email: csrksh@thdc.co.in Website: www.thdc.co.in Corporate Office Registrar & Share Transfer Agent THDC India Limited KFin Technologies Ltd. Ganga Bhawan, Pragatipuram, Selenium Building, Tower – B, By-Pass Road Rishikesh 249201 Plot 31-32, Financial District, Uttarakhand Nanakramguda, Serilingampally Mandal, Hyderabad - 500 032, Telangana. Tel: +91-40-33211000, Email: venu.sp@kfintech.com Statutory Auditors Cost Auditors M/s S.N Kapur & Associates. M/s K.G. Goel & Associates, New Delhi Ajay Seth,1 MaitriVihar, M/s K.B. Saxena & Associates, New Delhi Haridwar Bypass Road, Dehradun M/s S.C. Mohanty & Associates, New Delhi Debenture Trustee Bonds Listed at VISTRA ITCL INDIA LIMITED National Stock Exchange of India Limited 6TH Floor, The IL&FS Financial Centre, Plot C-22, Bombay Stock Exchange G-Block, Bandra Kurla Complex, Bandra East, Mumbai-400013 Depositories Bankers/Financial Institutions Central Depository Service(India) Limited 1. Punjab National Bank Regd. Office: Marathon Futurex, 2. State Bank of India 25th Floor, NM Joshi Marg, Lower Parel 3. World Bank (East) Mumbai-400013 4. Jammu and Kashmir Bank National Securities Depository Limited 5. Power Finance Corporation Limited Trade World, A wing, 4th Floor, 6. REC Limited Kamala Mills Compound, 7. Axis Bank Senapati Bapat Marg, 8. HDFC Bank Ltd Lower Parel, Mumbai - 400013 9. Union Bank of India 10. Bank of Baroda Credit Rating Agencies Secretarial Auditor Care Ratings Limited M/s P.S.R. Murthy India Ratings & Research Pvt Limited 178 RPS Flats, Sheik Sarai Phase-1, ICRA Limited New Delhi-110017. 7 PROJECT PORTFOLIO THDCIL OPERATIONAL PROJECTS (1587 MW) HYDRO POWER • 1000 MW Tehri HPP in Uttarakhand • 400 MW Koteshwar HEP in Uttarakhand • 24 MW Dhukwan Small HEP in U.P. WIND POWER • 50 MW Patan in Gujarat • 63 MW Dwarka in Gujarat SOLAR POWER • 50 MW Solar Power Project, Kasaragod in Kerala THDCIL UNDER CONSTRUCTION PROJECTS (2764 MW) HYDRO POWER (1444 MW) • 1000 MW Tehri PSP in Uttarakhand • 444 MW Vishnugad Pipalkoti HEP in Uttarakhand THERMAL POWER (1320 MW) • 1320 MW Khurja STPP in U.P. • Amelia Coal Mine in M.P. (Coal Linkage for Khurja STPP) DEVELOPMENT OF SOLAR POWER PARKS THROUGH JV COMPANY Solar Parks (12000 MW) through JVs • 600 MW Solar Power Park in Jhansi • 600 MW Solar Power Park in Lalitpur • 800 MW Solar Power Park in Chitrakoot • MoU has been signed for development of 10000 MW with RRECL 8 CHAIRMAN’S SPEECH In line with India’s Nationally Determined Contributions (NDC), we have furthered our vision for a sustainable tomorrow with our commitment for achieving Carbon Neutrality before 2050. We are increasing our efforts in this direction with our commitment to set emission reduction targets. I am delighted to state that your Company has signed MoU with RRECL (Rajasthan Renewable Energy Corporation Limited) on 15th Apr’ 2022 for development of 10,000 MW Ultra Mega Renewable Energy Parks in the Rajasthan state. The RE parks will be developed through a SPV in the form of a JV company between ‘THDCIL’ and ‘RRECL’. The development of 10,000 MW Ultra Mega Renewable Energy Parks is planned to be completed within 5 years with an estimated expenditure of about ` 40,000 Cr. On completion of this project about 17,000 crore units of electricity shall be generated. I am glad to announce here that the Ministry of Power, GoI has allotted 02 Nos. Hydro-Electric Projects (Kalai-II 1200 MW and Demwe Lower 1750 MW) in Lohit Basin of Arunachal Pradesh to THDCIL to pursue with the State Govt. for carrying suitable analysis and preparation of evaluation report. THDCIL has already initiated the process. Further with an objective to explore future possibilities of energy generation from Renewable Sources, Energy Efficiency and Environmental Technologies an MoU has already been signed between THDCIL and IREDA on 3rd Dec, 2021 to collaborate in the field of renewable energy for a period of 5 years. We have a good experience during the construction of Tehri Pump Storage Plant and therefore your company can play a significant role in the construction of Pumped Storage Plants. Accordingly, THDCIL is also exploring the possibility of Pumped Storage Plant in different states. For a cleaner tomorrow, we aim to capitalise opportunities across hybrid, floating solar, hydrogen fuel projects and strengthen EV Dear Shareholders, charging stations. In line with THDCIL have plan to install a pilot project for Green Hydrogen production and Hydrogen fuel cell based micro- I consider it as an honor to place before you the Annual Report for the grid at THDCIL office complex, Rishikesh, Uttrakhand. Electrolyser Financial Year ending 31st March 2022. I am happy to present Auditor’s will run in the day using solar power from 1 MW capacity Roof top and Directors’ Report for the year 2021-22 along with Annual Audited solar plant and produce enough Green Hydrogen and then provide Accounts of the Company. electricity through the fuel cell in the night. Experience gained from With your whole-hearted support, your company is strengthening its successful implementation and operation of this pilot project shall be fundamentals continuously and is emerging as one of the fast growing utilized in implementing Green Hydrogen production and storage Plant organization. at Commercial Scale. GROWTH OUTLOOK PERFORMANCE HIGHLIGHTS IN FY 2021-22 The Government of India has set a target to increase its generation I am glad to announce here that your Company has performed capacity from non–fossil resources to 40% of the total generation consistently and improved its robust fundamentals during the financial capacity and reduce the carbon intensity by the year 2030. The year 2021-22. This gives us tremendous confidence to achieve higher commitment regarding non-fossil fuel capacity is proposed to be met objectives in the future. mainly from installation of Solar and Wind power capacities. The targets • With efforts of team THDCIL, your company achieved 118% of is to add 175 GW of solar and wind power by the year 2022 and 450 CAPEX during the financial year 2021-22, which is ` 3231.51 GW by the year 2030. Integrating such large scale intermittent solar Cr. against a target of ` 2730 Cr. It is highest achievement and wind power may cause problem in maintaining grid stability. Thus, in terms of percentage in the all power sector CPSE during FY hydropower can play a very useful role in complementing renewable 2021-22. source of power and in stabilizing/ balancing the grid. The Government has targeted to add 30,000 MW of hydropower (including about 8,700 • In its principal operating segment of energy generation, all MW from Pump Storage Projects) by the year 2030. Operational Plants performed exceptionally well. Total cumulative 9 generation achieved from all plants was 4670.81 MU during THDCIL is in process of implementing a Pilot Project for carbon capture 2021-22 which is more than previous year i.e. 4565.38 MU. at Khurja STPP (2x660 MW) with a newly emerging cost-effective carbon capture technology. This shall help in removing majority of • Plant Availability Factor (PAF) of 83.728% and 68.567% was carbon-based emission (CO2, Methane etc) from exhaust gases. achieved for Tehri HPP and Koteshwar HEP respectively, against the normative figures of 80% and 68% respectively. Flue Gas Desulphurization system is also being installed in Khurja based on Wet Lime Stone Forced Oxidation process technology to reduce the • Forced outages during FY 2021-22 for Tehri HPP and KHEP were emissions of Sulphur Dioxide in flue gas produced by coal being fired 0.02% and 0.01% respectively. It is evident from forced outages in boiler to the limits well below that specified in the Environmental that reliability of plant and equipment were not compromised Clearance. during Covid -19 Pandemic. Green Energy will dominate the Indian Electricity Market for next 10 • Gross sales during the year 2021-22 is ` 1921.49 Cr. The net years. Shri Narendra Modi has set an ambitious target of producing a Profit is ` 896.92 Cr. MoU rating of your company for the year capacity of 500 GW of green energy by 2030, and THDCIL is all set to 2021-22 is expected to be ‘Very Good’. take a lead role in achieving the target. In pursuit to the goal, THDCIL has already started to develop solar plants of 2000 MW. The company • The company has successfully raised the funds through issue of has also signed the MoU for development of 10000 MW of Solar Power Secured Corporate Bonds Series -VI of total issue size amounting Park in Rajasthan. In next 3 years, THDCIL has a set a ambitious target to ` 800 Cr. having a tenor of 10 years. The issue was over of 25000 MW green energy. THDCIL is expected to start projects of subscribed to about 10 times of base issue size. The company 6000 MW Hydro Power in next 2 years. received Bids for ` 2969 Cr. against total issue size of ` 800 Cr. which shows investors confidence in the Company. THDCIL endeavours to become the largest green power resource of the country, in public sector, which would not only have the green ON GOING PROJECTS power generation capacity but also huge storage capacities. THDCIL acknowledges that transformation will be an immense challenge in the Power is a critical input for any economic activity. Its sufficiency is a very competitive power sector, as it is one of the biggest challenge pre-requisite for speeding up India’s economic growth and improving to stay afloat while transition in green energy dominated era, from an the living standards of all our citizens. Without power, we cannot era where we were dominated mostly by coal fired or jet-fired power empower our people in the economic dimension of their lives. It is plants. Further, retaining outside talent is also one of the challenge in a major determinant of the quality of life. THDCIL envisages to have the power sector. installed capacity of 4351 MW by 2025. In Tehri PSP, works in all fronts are in advance stage of commissioning. SYSTEMS FOR SOCIAL SUSTAINABILITY The 1st Unit is likely to be commissioned by Dec’2022. Your Company continued extensive activities towards Corporate After implementation of different measures in the interest of the project Social Responsibility (CSR) in Company’s operational areas through (VPHEP), the project is on track and 1st unit is likely to be commissioned company sponsored society ‘SEWA-THDC’. THDCIL’s operational area by Oct’ 2024. is quite large and mandatory CSR fund of the company is not adequate to address even the basic necessary requirements of the stakeholders. In Khurja STPP, Major Plant Packages have already been awarded To overcome the situation, your company entered into the partnership and work progress is in full swing at all fronts. 1st unit is likely to be projects with various State / Central Govt. Deptts. / agencies and commissioned by Feb’ 2024. successfully mobilized additional funds amounting to more than 2.35 Cr. available in agriculture, horticulture, watershed development, rural I’m happy to convey that as per the current progress of work, THDCIL’s development, health and irrigation fields etc. for overall and sustainable coal fired power plant in Khurja is going to be the fastest coal fired plant improvement in the lives of the targeted communities. ever implemented in the Country. At Amelia, Coal Mining Agreement (CMA) has been signed with MDO, M/s BCML and Consortium on Your company, also took a pioneering step in mitigating the challenges 30.08.2022. Anticipated grant of opening permission of Amelia Coal of climate change due to excessive carbon emission by fossil fuel Mine is Sept 2022. dependent vehicles, by establishing Uttarakhand’s first public Electric Vehicle Charging Stations at Dist. Haridwar. In continuation to above Your Company made significant achievements during this period and intent of protecting the environment & plant earth, induction stove and took several new initiatives for transforming THDC into a more multi- cookware were distributed to villagers of local area to discourage the project organization. Your Company strengthened its fundamentals dependency on forest fuel for cooking need. further and laid significant steps for spearheading energy transition to make THDC a “Sustainable Integrated Energy Company”. In the past THDCIL also strongly stood by with the Central Govt. in fighting against year, your Company improved its realization, established JVs for solar the COVID-19 pandemic & other welfare initiatives. Your company projects, continued capacity addition and met capex targets. has made a contribution of ` 4.05 Cr. in PM Care Fund from the CSR Budget of 2021-22. In addition, THDCIL’s staff actively participated THE ROAD AHEAD in protection & relief operations in Rishikesh & nearby localities of Projects by distribution of food material, sanitizers, masks, pulse THDCIL has entered into other power sources such as wind energy, oximeter, digital thermometer, etc. solar energy, coal fired power and now new technologies like carbon capture and hydrogen storage. 10 Despite COVID-19 pandemic, your company has moved ahead Guidelines issued by Department of Public Enterprises, GoI and all smoothly to achieve its goal. The second wave of the pandemic had other applicable provisions of Companies Act, 2013. I am delighted a significant impact on lives, livelihoods, and the businesses. The to share with you that your Company has been continuously achieving coronavirus pandemic has challenged the entire humanity. To contain “Excellent” rating for compliance with ‘DPE Guidelines on Corporate the spread of the virus and keeping in view the safety, health and Governance’. wellbeing of our employees, their families, and other stakeholders as our first priority, we have ensured all precautions/ remedial measures The Company is committed to conducting its business in accordance and arranged vaccination also for employees and their families. We with applicable laws, rules and regulations and the highest standards have also extended help to State Govts. by way of strengthening their of business ethics, honesty, integrity and ethical conduct. Accordingly, healthcare infrastructure and providing essential medical equipment. the Board has established a vigil mechanism by adopting a ‘Whistle Even when many employees were affected by the virus, your company Blower Policy’ for stakeholders including Employees and Directors and has ensured 24X7 power supply to meet the power requirement of the their representatives to freely communicate their concerns about illegal country. or unethical practices. In such a difficult time, the commitment of employees and cooperation To redress the grievances of Investors, your company uses web based of the stakeholders has helped in ensuring the growth of the company. centralized grievance redressal system of SEBI, SCORES. I am glad to share with you that your Company has not received any investor THDCIL gives the highest priority to the safety and health of customers, grievances during the financial year. business partners, and other related parties, as well as employees and their families. Having taken adequate measures to prevent the spread of the infection, such as thorough enforcement of remote work, and COMMITMENT TO SELF-RELIANCE – securing social distance in generation, construction and service related AATMANIRBHAR BHARAT departments, we will continue business that are necessary for fulfilling Government of India (GoI) has come up with Aatma Nirbhar Bharat our responsibilities to society as a Corporation in order to maintain Abhiyan with the vision to promote local economy. Under this Abhiyan, people’s lives, provide a stable supply of electricity, provide services, an emphasis has been given with the vision to replace the import and support our customers. content with the products made in India to promote employment In addition to above, THDCIL also stood with the Uttarakhand State and manufacturing in India. The various PSUs along with other Govt. in rehabilitation and reconstruction activities of the infrastructure Govt. Departments which are implementing various infrastructure destroyed during the unprecedented rainfall experienced in different development activities within the country are the major consumers of part of the State during the month of Oct’ 2021 by contributing CSR the various high value products and thus can play an important role funds to the Uttarakhand State Disaster & Management Authority. in fulfillment of the objective in association with the private sector/ upcoming MSMEs. CORPORATE GOVERNANCE PRACTICES THDCIL, is making all efforts in alignment with Government’s initiatives for increasing procurement from Local Suppliers viz., providing Your Company’s philosophy on Corporate Governance is based on relaxation to MSEs in procurement, procurement of mandatory items the principles of integrity, fairness, equity, transparency, accountability specified by the Ministry exclusively from MSEs only, compliance of and commitment to values. Your Company is committed to highest Public Procurement (Preference to Make in India) Policy of GoI etc. corporate governance standards by applying the best management practices, compliance of law in true letter and spirit and adherence to ethical standards for effective management. The Company’s Corporate BROADENING HORIZONS: THDCIL OF TOMORROW Governance structure ensures timely implementations of plans and As the economy has gathered pace, the electricity demand is expected adequate disclosures as well as fair dealings with stakeholders’ to grow this financial year. The under-construction projects that interests thereby ensuring highest standards of business ethics and suffered the delay in commissioning, I am sure that dedicated and integrity. experienced employee force of our Company would put in their best Your Company’s Board of Directors comprises of an optimum efforts to achieve the above feet. combination of professionals with expertise, diversity and Your company is fully concentrated to take more Hydro Projects in the Independence. Your Board guided by the mission statement, Uttarakhand as well as in other hydro rich states of the country. The continuously endeavors to improve and adopts innovative approaches renewable energy projects are also on the prime agenda for Sustainable for leveraging resources, converting opportunities into achievements economic growth of the company. through proper empowerment and motivation, fostering a healthy growth and development of company. The Company and its Board of Green Hydrogen is expected to be the future of energy and the Directors firmly believe that strong governance is primary to creating momentum for “Green Hydrogen” is gaining traction across the globe. value on a sustainable basis. Good corporate governance practices Your Company believes that Green Hydrogen is going to occupy have enabled the Company to have better access to external finance, significant energy space in future. Accordingly, your Company is also lower interest rates, improved performance and compliance of laws planning to start Research and development for Hydrogen production. and regulations. We have adopted robust Environmental, Social and Governance THDCIL has been complying with the requirements of SEBI (Listing practices and remain fully committed to the environment and society. Obligations and Disclosure Requirements) Regulations, 2015 and We continue to foster the creation of an ecologically sensitive, 11 Board of Directors-THDCIL at 34th Annual General Meeting held on 20th Sept., 2022 value based and empowered society through our purposeful CSR My special thanks and appreciation for the valuable contribution and engagements and initiatives. Your Management’s highest priority would suggestions of the members of the Board and the Senior Management be to execute the projects in hand with special focus on projects under team, in improving the performance of the Company. I would like to construction within the planned schedule. specially acknowledge the efforts and dedication of the entire THDC team for making the company a reckoning force in the Power Sector. As a part of plan for accomplishing our cherished vision of achieving more than 4300MW installed capacity by 2025 and 6000 MW by 2030, I also thank you for your continued trust, confidence and support. the Management has formulated aggressive strategies which include both organic as well as inorganic modes for growth. The Status of Operational Plants and other ongoing Projects has been With best wishes, amply covered in the Directors’ Report and hence, I would only like to mention that in addition to the Operational Plants having combined installed capacity of 1587 MW, the other projects namely Tehri PSP , Sd/- VPHEP in Uttarakhand, Khurja STPP in Uttar Pradesh; totalling up to (Rajeev Kumar Vishnoi) 2764 MW of capacity are under advanced stages of construction. Chairman & Managing Director DIN: 08534217 ENDORSEMENT Date: 20.09.2022 On behalf of the Board of Directors of THDC India Limited, I would Place: New Delhi like to convey my gratitude to all our stakeholders, business partners, customers, NTPC, CERC, CEA, CWC, DPE, SEBI, BSE, NSE, State Governments and various Ministries of Govt. of India, especially Ministry of Power for providing valuable guidance and support in our endeavors. 12 Date : 20.09.2022 NOTICE NOTICE is hereby given that the 34th Annual General Meeting of the Members of THDC India Limited is scheduled on Tuesday, 20th September, 2022 at 12:30 P.M at THDCIL, New Delhi Office, to transact the following business: ORDINARY BUSINESS 1. To receive, consider and adopt audited standalone and consolidated financial statements of the Company for the year ended March 31, 2022, the reports of the Board of Directors and Auditors thereon. “RESOLVED THAT the standalone and consolidated annual accounts of the Company for the year ended March 31, 2022 together with all schedules and annexure forming part of the Annual accounts and accounting policies of the Corporation, Cash Flow Statement, including the Report of Statutory Auditor’s and Comments’ of Comptroller & Auditor General of India under Section 143(6) of the Companies Act 2013 on the standalone and consolidated financial statements and the Directors’ Report along with all annexure laid before the meeting, be and are hereby approved and adopted.” 2. To fix the remuneration of the Statutory Auditors for the Financial Year 2022-23. “RESOLVED THAT the remuneration of M/s S. N. KAPUR & ASSOCIATES, Chartered Accountants, C/O AJAY SETH, 1 MAITRI VIHAR, HARIDWAR BY PASS ROAD, DEHRADUN-248001 for the Financial year 2022-23 be fixed as under: I. Statutory Audit fees ` 13,10,000/- (Rupees Thirteen Lakh Ten Thousand Only). II. The remuneration for all other works including review of quarterly accounts, Fees for Tax Audit, other Statutory Certificates etc. should not exceed fees payable for carrying out Statutory Audit. III. TA/DA and out of pocket expenses shall be regulated as per extant terms. IV. GST as payable shall be reimbursed. 3. To confirm payment of interim dividend and declare Final Dividend for the year 2021-22, as recommended by the Board. “RESOLVED TO APPROVE the final Dividend of `197.94 Crore for the FY 2021-22 on equity shares, paid to Equity Shareholders, i.e NTPC Ltd. and Govt. of UP in proportion to their Equity Share Holdings as on 31.03.2022.” “RESOLVE TO CONFIRM the payment of interim dividend of ` 317.36 Crore for the FY 2021-22 to Equity Shareholders i.e. NTPC Ltd. and Govt. of UP in proportion to their Equity Share Holdings as on 31.12.2021” 13 SPECIAL BUSINESS 4. To appoint Dr. Jayaprakash Naik B. (DIN:09423574), as an Independent Director of the Company and in this regard to consider and if thought fit, to pass the following resolution as Special Resolution: “RESOLVED THAT pursuant to the provisions of Section 149,152 and other applicable provisions, if any, of the Companies Act, 2013 rules made thereunder, Regulation 17 (1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Dr. Jayaprakash Naik B. (DIN:09423574) who was appointed as an Independent Director, by President of India vide Ministry of Power Order No. 14-37/43/2021- H.I (259063) dated 10th November, 2021 for a period of three years w.e.f the date of notification of their appointment or until further orders, be and is hereby appointed as an Independent Director of the Company on terms & conditions fixed by Government of India.” 5. To appoint Smt. Sajal Jha (DIN:09402663), as an Independent Director of the Company and in this regard to consider and if thought fit, to pass the following resolution as Special Resolution: “RESOLVED THAT pursuant to the provisions of Section 149,152 and other applicable provisions, if any, of the Companies Act, 2013 rules made thereunder, Regulation 17 (1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Smt. Sajal Jha (DIN:09402663) who was appointed as an Independent Director, by President of India vide Ministry of Power Order No. 14-37/43/2021- H.I (259063) dated 10th November, 2021 for a period of three years w.e.f the date of notification of their appointment or until further orders, be and is hereby appointed as an Independent Director of the Company on terms & conditions fixed by Government of India.” 6. To appoint Shri Kesridevsingh Digvijaysingh Jhala (DIN:09101303), as an Independent Director of the Company and in this regard to consider and if thought fit, to pass the following resolution as Special Resolution: “RESOLVED THAT pursuant to the provisions of Section 149,152 and other applicable provisions, if any, of the Companies Act, 2013 rules made thereunder, Regulation 17 (1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Shri Kesridevsingh Digvijaysingh Jhala (DIN:09101303), who was appointed as an Independent Director, by President of India vide Ministry of Power Order No. 14-37/43/2021- H.I (259063) dated 28th March, 2022 for a period of three years w.e.f the date of notification of their appointment or until further orders, be and is hereby appointed as an Independent Director of the Company on terms & conditions fixed by Government.” 7. To appoint Shri Anil Garg (DIN:00768222), as Part Time Director (GoUP Nominee Director) of the Company and in this regard to consider and if thought fit, to pass the following resolution as Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Section 149,152 and other applicable provisions, if any, of the Companies Act, 2013 rules made thereunder, Regulation 17 (1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Shri Anil Garg (DIN:00768222), who was appointed as GoUP Nominee Director vide Government of UP order dated 26th April, 2022, be and is hereby appointed as an GoUP Nominee Director of the Company on terms & conditions fixed by Government.” 8. To appoint Shri Jaikumar Srinivasan (DIN:01220828), as Nominee Director NTPC Limited in the Company and in this regard to consider and if thought fit, to pass the following resolution as Ordinary Resolution: “RESOLVED THAT pursuant to the provisions of Section 149,152 and other applicable provisions, if any, of the Companies Act, 2013 rules made thereunder, Regulation 17 (1C) and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Shri Jaikumar Srinivasan (DIN:01220828), who was appointed as Nominee Director NTPC Limited, vide Ministry of Power Order No. 14-7/14/2020- H.I (252539) dated 17th August, 2022, be and is hereby appointed as an Nominee Director of the Company on terms & conditions fixed by Government of India.” 9. To ratify the remuneration of the Cost Auditors for the financial year 2022-23 and in this regard to consider and if thought fit, to pass, with or without modification(s), the following resolution as an Ordinary Resolution: 14 “RESOLVED TO RATIFY the remuneration of Cost Auditors as approved by the Board of Directors in its 226th Meeting for the F.Y. 2022-23 pursuant to the provisions of section 148(3) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2016 as amended and other applicable provisions as follows: - S. No. Name of Auditor (M/s) Fees 01 R. M. Bansal & Co, Cost Accountants, Kanpur. as the Cost Auditor of Tehri ` 75,000 Plus applicable taxes HPP for the F.Y. 2022-23. 02 Balwinder & Associates, Cost Accountants, Chandigarh, as the Cost ` 75,000/- Plus applicable taxes. Auditor of Koteshwar HEP for the F.Y. 2022-23. 03 Ramanath Iyer & Co., Cost Accountants, New Delhi, as the Cost Auditor of ` 70,000/- plus applicable taxes Wind Power Projects for the F.Y. 2022-23. 04 Sanjay Gupta Associates, Cost Accountants, New Delhi, as the Cost ` 40,000/- plus applicable taxes. Auditor of Dhukwan SHP for the F.Y. 2022-23. 05 Dhananjay V. Joshi & Associates, Cost Accountants, Pune, as the Cost ` 40,000/- plus applicable taxes. Auditor of Solar Power Plants for the F.Y. 2022-23. 06 R. J. Goel & Co., Cost Accountants, New Delhi – 110034, as the Lead ` 75,000/- plus applicable taxes. Cost Auditor to consolidate all the cost audit reports for the F.Y. 2022-23. In addition to above, GST is payable as applicable and Travelling, Boarding & Lodging expenses will be reimbursed as per EoI. 10. To approve the issue of Corporate Bonds upto ` 3000 Crore on Private Placement Basis to be issued in suitable tranches and in this regard to consider and if thought fit, to pass, with or without modification(s), following resolution as a Special Resolution: “RESOLVED THAT pursuant to Section 42,71 and other applicable provisions of the Companies Act, 2013 read with Rule 14 (1) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 and any other applicable statutory provisions (including any statutory modification or re-enactments thereof), and subject to the provisions of the Articles of Association of the Company, approval of the members be and are hereby accorded to authorize the Board of Directors of the Company for raising funds upto ` 3000 Crore through issuance of Secured / Unsecured Corporate Bonds on Private Placement Basis on such terms and conditions as the Board of Directors of the Company may, from time to time, determine and in the beneficial interest of the Company including time, consideration for the issue, utilization of issue proceeds and all other matter connected with or incidental thereto. RESOLVED FURTHER THAT the Board be and is hereby authorized to do or delegate from time to time, all such acts, deeds and things as may be deemed necessary to give effect to private placement of such Bonds including but not limited to determining the face value, issue price, issue size, tenor, timing, amount, security, coupon/interest rate, yield, listing, allotment and other terms and conditions of issue of Bonds as it may, in its absolute discretion, consider necessary.” By order of the Board of Directors of THDCIL THDC INDIA LIMITED Sd/- Rashmi Sharma (Company Secretary) M-8266098898 To : • All Shareholders of THDCIL • All Directors of THDCIL • Statutory Auditors – M/s S.N Kapur & Associates, Chartered Accountants • Secretarial Auditor- M/s PSR Murthy. • Debenture Trustee- Vistra ITCL (India) Ltd. 15 PROXY FORM Name of the Company : THDC India Limited Registered Office : Bhagirathi Bhawan (Top Terrace), Bhagirathi Puram, Tehri (Garhwal) 249001, Uttarkhand Name of the Member Registered Address E-Mail I ............................................................................................................................ a member of THDC India Ltd. do hereby Appoint Shri ............................................................................................. of ...................................................................(failing him) of as my proxy to attend and vote for me and on my behalf at the 34th Annual General Meeting of the Company to be held on the 20th day of September, 2022 at 12:00 Noon and at any adjournment thereof in respect of such resolutions as indicated Below: ORDINARY BUSINESS 1. To receive, consider and adopt audited standalone and consolidated financial statement of the Company for the year ended March 31, 2022, the reports of the Board of Directors and Auditors thereon. 2. To fix the remuneration of the Statutory Auditors for the Financial Year 2022-23. 3. To confirm payment of interim dividend and declare Final Dividend for the year 2021-22, as recommended by the Board. SPECIAL BUSINESS 4. To appoint Dr. Jayaprakash Naik B. (DIN:09423574), as an Independent Director of the Company. 5. To appoint Smt. Sajal Jha (DIN:09402663), as an Independent Director of the Company. 6. To appoint Shri Kesridevsingh Digvijaysingh Jhala (DIN:09101303), as an Independent Director of the Company 7. To appoint Shri Anil Garg (DIN:00768222), as Nominee Director of GoUP in the Company 8. To appoint Shri Jaikumar Srinivasan (DIN:01220828), as Nominee Director NTPC Limited in the Company 9. To ratify the remuneration of the Cost Auditors for the financial year 2022-23. 10. To approve the issue of Corporate Bonds upto ` 3000 Crore on Private Placement basis to be issued in suitable tranches. As witness my hand this...........................................................day of........................................................................,2022 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. 16 Notes: 1. The relevant explanatory statement pursuant to Section 102 of the Companies Act, 2013, in respect of Special Business, as set out above is annexed hereto. 2. Notice and Annual Report 2021-22 will also be available on the Company’s website www.thdc.co.in. 3. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote instead of himself/ herself and the proxy need not be a member of the company. In order to be effective, the proxy form duly completed should be deposited at the registered office of the company not less than forty eight hours before the scheduled time of the annual general meeting. Blank proxy form is enclosed. 4. Every member entitled to vote at a meeting of the company or on any resolution to be moved there at, shall be entitled during the period beginning twenty four hours before the time fixed for the commencement of the meeting and ending with the conclusion of the meeting, to inspect the proxies lodged, at any time during the business hours of the company, provided not less than three days’ notice in writing of the intention to inspect is given to the company. 5. The Board of Directors, in its meeting held on February 14, 2022 had declared an interim dividend 80% of 4% of Net worth as on 31.03.2021 i.e. 3.2% of Net worth of ` 9917.43 Crore as on 31.03.2021 which comes to ` 317.36 Crore to Equity Shareholders in proportion to their Equity Share Holdings as on 31.12.2021. 6. Annual listing fee for the year 2022-23 has been paid to all Stock Exchanges. Also, the Annual Custodian Fee for the year 2022-23 was paid to both Depositories i.e. Central Depository Services (India) Limited and National Securities Depository Limited. 7. None of the Directors of the Company is in any way related with each other. Tehri HPP Power House 17 EXPLANATORY STATEMENT UNDER SECTION 102 (1) OF COMPANIES ACT, 2013 The following statement sets out all material facts relating to Special Businesses mentioned in the accompanying notice: ITEM NO. 4 : To appoint Dr. Jayaprakash Naik B. (DIN:09423574), as an Independent Director of the Company. Dr. Jayaprakash Naik B. (DIN: 09423574), was appointed as an Independent Director, by President of India vide Ministry of Power, Govt. of India vide its letter No. 14-37/43/2021- H.I (259063) dated 10th November, 2021 for a period of three years w.e.f. the date of notification of their appointment or until further orders. Dr. Jayaprakash Naik B. has completed his PhD in Agriculture Science from University of Agriculture Sciences, Banglore. He has given a declaration to the effect that he meets the criteria of Independence as prescribed under Section 149 of the Companies Act, 2013, read with the Companies (Appointment & Qualification) Rules, 2014 & Regulation 16 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. None of the Directors, Key Managerial Personnel of the Company or their relatives except Dr.Jayaprakash Naik B., is in any way, concerned or interested, financially or otherwise, in the resolution except as may be deemed to be concerned or interested in the proposed resolution to the extent of their shareholding in the Company, if any. ITEM NO. 5 : To appoint Smt. Sajal Jha (DIN: 09402663) as an Independent Director of the Company. Smt. Sajal Jha (DIN:09402663), was appointed as an Independent Director, by President of India vide Ministry of Power, Govt. of India vide its letter No. 14-37/43/2021- H.I(259063) dated 10th November, 2021 for a period of three years w.e.f the date of notification of their appointment or until further orders. Smt. Sajal Jha is a law graduate from Magadh University, Bihar. She has given a declaration to the effect that she meets the criteria of Independence as prescribed under Section 149 of the Companies Act, 2013, read with the Companies (Appointment & Qualification) Rules, 2014 & Regulation 16 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. None of the Directors, Key Managerial Personnel of the Company or their relatives except Smt Sajal Jha, is in any way, concerned or interested, financially or otherwise, in the resolution except as may be deemed to be concerned or interested in the proposed resolution to the extent of their shareholding in the Company, if any. ITEM NO.6 : To appoint Shri Kesridevsingh Digvijaysingh Jhala (DIN:09101303), as an Independent Director of the Company. Shri Kesridevsingh Digvijaysingh Jhala (DIN:09101303), was appointed as an Independent Director, by President of India vide Ministry of Power Order No. 14-37/43/2021- H.I(259063) dated 28th March, 2022 for a period of three years w.e.f the date of notification of their appointment or until further orders. Shri Kesridevsingh Digvijaysingh Jhala is graduate in Tourism and Leisure Management from the University of Huddersfield Yorkshire, U.K. He has given a declaration to the effect that he meets the criteria of Independence as prescribed under Section 149 of the Companies Act, 2013, read with the Companies (Appointment & Qualification) Rules, 2014 & Regulation 16 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. None of the Directors, Key Managerial Personnel of the Company or their relatives except Shri Kesridevsingh Digvijaysingh Jhala, is in any way, concerned or interested, financially or otherwise, in the resolution except as may be deemed to be concerned or interested in the proposed resolution to the extent of their shareholding in the Company, if any. ITEM NO.7 : To appoint Shri Anil Garg (DIN:00768222), as Part Time Director (GoUP Nominee Director) of the Company. Shri Anil Garg (DIN:00768222), was appointed as GoUP Nominee Director vide Government of UP order dated 26th April, 2022. Shri Anil Garg belongs to 1996 Indian Administrative Services. He is a graduate in Electronics and Communication Engineering from Thappar University, Patiala and LLM from National Law University, Delhi. None of the Directors, Key Managerial Personnel of the Company or their relatives except Shri Anil Garg, is in any way, concerned or interested, financially or otherwise, in the resolution except as may be deemed to be concerned or interested in the proposed resolution to the extent of their shareholding in the Company, if any. 18 ITEM NO. 8: To appoint Shri Jaikumar Srinivasan (DIN:01220828), as Nominee Director NTPC Limited in the Company. Shri Jaikumar Srinivasan (DIN:01220828), was appointed as Nominee Director of NTPC Limited on Board of THDC India Ltd., vide Ministry of Power Order No. 14-7/14/2020- H.I(252539) dated 17th August, 2022. Shri Jaikumar Srinivasan is a Commerce graduate and an Associate Member of Institute of Cost Accountants of India. None of the Directors, Key Managerial Personnel of the Company or their relatives except Shri Jaikumar Srinivasan, is in any way, concerned or interested, financially or otherwise, in the resolution except as may be deemed to be concerned or interested in the proposed resolution to the extent of their shareholding in the Company, if any. ITEM NO. 9: To ratify the remuneration of the Cost Auditors for the financial year 2022-23. The appointment of cost auditor for the F.Y. 2022-23 was approved by the Board in 226th meeting of Board of Directors which was held on 10th August, 2022. As per Rule 14 of Companies (Audit and Auditors) Rules, 2014 read with section 148(3) of the Companies Act, 2013, the remuneration recommended by the Audit Committee shall be considered and approved by the Board of Directors and ratified subsequently by the shareholders. The Audit Committee in its 86th Meeting held on 10th August, 2022 recommended the Appointment of Cost Auditors for the F.Y. 2022-23 for approval of the Board and subsequently by the shareholders. The Board of Directors of the Company in its 226th meeting held on 10th August, 2022 has approved the above proposal and recommended to ratify the remuneration payable to the Cost Auditors for the financial year 2022-23. The Directors or Key Managerial Personnel or their relatives do not have any concern or interest, financial or otherwise, in passing of the said Resolution. The Board recommended the remuneration of cost auditors as under: S. No. Name of Auditor (M/s) Unit to be audited / Role Fees 01 R. M. Bansal & Co, Tehri HPP ` 75,000/- plus applicable taxes Cost Accountants, Kanpur. 02 Balwinder & Associates, Koteshwar HEP ` 75,000/- plus applicable taxes Cost Accountants, Chandigarh 03 Ramanath Iyer & Co., Wind Power Projects ` 70,000/- plus applicable taxes. Cost Accountants, New Delhi. 04 Sanjay Gupta Associates, Dhukwan SHP ` 40,000/- plus applicable taxes Cost Accountants, New Delhi 05 Dhananjay V. Joshi & Solar Power Plants ` 40,000/- plus applicable taxes Associates, Cost Accountants, Pune. 06 R. J. Goel & Co., Lead Cost Auditor to consolidate all the cost ` 75,000/- plus applicable taxes Cost Accountants, audit reports. New Delhi–110034. It is also proposed to appoint, M/s R. J. Goel & Co., Cost Accountants, New Delhi as Lead Cost Auditor to consolidate all the cost audit reports and submit the consolidated Cost Audit Report for the Company for the year 2022-23. Keeping above in view, Members are requested to fix the remuneration of the Cost Auditors for the year 2022-23 by passing following resolutions: “RESOLVED TO RATIFY the remuneration of Cost Auditors for the F.Y. 2022-23 as approved by the Board in its 226th meeting pursuant to the provisions of section 148(3) of the Companies Act, 2013 read with the Companies (Cost Records and Audit) Amendment Rules, 2016 as amended and other applicable provisions as follows: - 19 S. No. Name of Auditor (M/s) Fees 01 R. M. Bansal & Co, Cost Accountants, Kanpur, as the Cost Auditor of Tehri HPP for ` 75,000/- plus applicable taxes. the F.Y. 2022-23. 02 Balwinder & Associates, Cost Accountants, Chandigarh, as the Cost Auditor of ` 75,000/- plus applicable taxes. Koteshwar HEP for the F.Y. 2022-23. 03 Ramanath Iyer & Co., Cost Accountants, New Delhi, as the Cost Auditor of Wind ` 70,000/- plus applicable taxes. Power Projects for the F.Y. 2022-23. 04 Sanjay Gupta Associates, Cost Accountants, New Delhi, as the Cost Auditor of ` 40,000/- plus applicable taxes. Dhukwan SHP for the F.Y. 2022-23. 05 Dhananjay V. Joshi & Associates, Cost Accountants, Pune, as the Cost Auditor of ` 40,000/- plus applicable taxes. Solar Power Plants for the F.Y. 2022-23. 06 R. J. Goel & Co., Cost Accountants, New Delhi – 110034, as the Lead Cost Auditor to ` 75,000/- plus applicable taxes consolidate all the cost audit reports for the F.Y. 2022-23. In addition to above, GST is payable as applicable and Travelling, Boarding & Lodging expenses will be reimbursed as per EoI. ITEM NO.10 : To approve the issue of Corporate Bonds upto ` 3000 Crore on Private Placement Basis to be issued in suitable tranches. 1. The Board of Directors of the Company in its 227th Meeting held on 20th September, 2022 had approved the proposal to raise funds up to ` 3000 Crore through issue of Secured/ Unsecured, Redeemable, Non-Convertible bonds for tenure of ten to fifteen years in suitable tranches. 2. The approval of the Shareholders of the Company is being sought to authorize the Board of Directors to raise funds up to ` 3000 Crore through issue of Secured/ Unsecured, Redeemable, Non-Convertible bonds for tenure of ten to fifteen years in suitable tranches during the period commencing from the date of passing of Special Resolution till completion of one year thereof or the date of next Annual General Meeting for the financial year 2022-23 whichever is earlier, subject to ceiling approved by the shareholders under Section 180 (1) (c) of Companies Act, 2013. 3. The Directors or key managerial personnel or their relatives do not have concern or interest, financial or otherwise, in passing of the said Special Resolution, except to the extent of their shareholding in the Company. As an integrated business plan, the company has been exploring all avenues for capacity addition in Hydro, Thermal and Renewable Power sectors. Various projects of the company are under operation, construction and investigation stage. The financial arrangements are as under: 1. Operating Projects - Company has six operating projects such as Hydro projects - Tehri Stage-I 1000 MW, Koteshwar HEP 400MW, Dhukwan SHEP , Wind projects - Patan 50MW, Dwarka 63MW and 50 MW Kasargod Solar Project. The project wise outstanding loans of operating projects are as under: (` in Crore) Sl. No. Name of Project Name of Financial Institution Amount outstanding Scheduled repayment As on 31.07.2022 1. Tehri Stage-I PFC Ltd 90.26 Quarterly, Upto 15.07.2023 2. Patan Bond Series-I 180.00 Bullet payment on 03.10.2026 3. Dwarka Bond Series-I 290.00 Bullet payment on 03.10.2026 4. Dhukwan Bond Series-I 130.00 Bullet payment on 03.10.2026 Bond Series-II 80.00 Bullet payment on 05.09.2029 5. Kasargod Solar Project Bond Series-IV 125.00 Bullet payment on 20.01.2031 The cash generated from the operation is being utilized to service above outstanding existing loans as well as funding towards equity for the ongoing projects. Around ` 700 Crore approx. is being repaid annually towards principal and interest on long-term loans. Further in order to meet out working capital requirements, company has availed OD limit / WCL from PNB / SBI / HDFC bank. 20 2. Construction Projects – a. Tehri PSP- The revised cost of Tehri PSP is ` 4825.60 Crore at Feb. 2019 PL and to be funded in debt equity ratio of 70:30. The company had received equity contribution of ` 372.95 Crore from GoI (now M/s NTPC Ltd.) and ` 124.32 Crore from GoUP in line with investment approval. Balance equity is being financed through internal accrual. For debt portion,the domestic loan was initially tied up with SBI led consortium for ` 1500 Crore which was repaid during 2017-18 & 2018-19, out of internal accrual, availing OD and Short-Term Loan. During 2018-19 the company has also availed Medium Term Loan of ` 700 Crore from PNB to part finance PSP project and recoupment of expenditure already incurred. The outstanding balance of PNB loan as on 31.07.2022 is ` 244.58 Crore. Beside this, out of fund realized from bond issue series II, III, IV & V, total amounting ` 2420.00 Crore have been utilized for Tehri PSP project. b. VPHEP Project – The revised cost of VPHEP is ` 3860.36 Crore at Feb. 2019 PL and to be funded in debt equity ratio of 70:30. The Company had received equity from GoI (now M/s NTPC Ltd.) ` 188.00 Crore and ` 71.63 Crore from GoUP in line with investment approval. Balance equity is being financed through internal accrual. For debt portion of the project, a loan agreement has been signed with World Bank for financing of USD 648 million. Due to higher dollar conversion rate THDCIL has surrendered USD 100 million during 2019-20, and also further surrendered USD 100 million during 2021-22, which were accepted by World Bank. The outstanding balance of World Bank Loan as on 31.07.2022 is USD 144.5 Million. c. Khurja STPP & Amelia Coal Mine - Investment approval of 2x660 MW of Khurja STPP and Amelia Coal mine was accorded and communicated vide letter dated 08.03.2019 for incurring expenditure of ` 12676.58 Crore at December 2017 PL which includes ` 11089.42 Crore for implementation of Khurja STPP and ` 1587.16 Crore for development of Amelia Coal Mine with scheduled operation during 2023-24. Equity portion is being financed through internal accrual. Long term financing arrangement for Khurja Project including Amelia Coal Mine has been planned by raising 50% of debt portion through bond and balance 50% through project financing from scheduled banks/Financial institutions. Accordingly, out of fund realized from bond issue series III, IV & V, total amount of ` 1625.00 Crore has been utilized for Khurja Project and Amelia Coal Mine. Beside this, THDCIL has also tied up with Bank of Baroda for financing of ` 2500.00 Crore towards CAPEX requirement of Company. The fund of this loan shall be used for Khurja STPP & Amelia Coal Mine. An amount of ` 1520.00 Crore has been drawn from BOB till 31.07.2022 against sanctioned amount of ` 2500.00 Crore. 3. Bond Borrowings – The company has issued series I, series II, series III, series IV and series V of bonds of ` 600 Crore, ` 1500 Crore, ` 800 Crore ` 750 Crore and ` 1200 Crore during 2016-17, 2019-20, 2020-21(series III & IV) and 2021-22 respectively. The utilization of fund against above bond series are as under:- (` In Crore) Bond Bond Utilization of bond proceeds series Size Wind Dukwan Tehri Khurja Amelia Kasargod projects Project PSP STPP Coal mines Solar Project I 600.00 470.00 130.00 II 1500.00 80.00 1420.00 III 800.00 200.00 600.00 IV 750.00 500.00 125.00 125.00 V 1200.00 300.00 900.00 TOTAL 4850.00 470.00 210.00 2420.00 1500.00 125.00 125.00 21 4. CAPEX Requirement– CAPEX of ` 3315.02 Crore has been estimated for the FY 2022-23 in RBE & ` 3900.40 Crore for 2023-24 in BE which consists of CAPEX requirement of Tehri PSP, VPHEP, Khurja STPP and Amelia coal mines. The details are as under: CAPEX Requirement (` In Crore) Year PSP VPHEP Khurja Amelia Others Total CAPEX other Debt than VPHEP requirement 70% of Col No. 8 1 2 3 4 5 6 7 8= (7-3) 9 2022-23 569.62 525.00 2000.51 212.00 7.89 3315.02 2790.02 1953.01 2023-24 508.38 659.94 2341.17 379.83 11.08 3900.40 3240.46 2268.32 Total 7215.42 6030.48 4221.33 Financing of VPHEP Project is tied up with World Bank. Therefore, it has not been considered in assessing debt requirements for these projects. Further, as per Column no. 9 of above table, the debt requirement in respect of projects other than VPHEP (70% of CAPEX) for the year 2022-23 and 2023-24 is estimated to ` 1953.01 Crore and ` 2268.32 Crore respectively, totaling to ` 4221.33 Crore. Besides above, an amount of ` 1341.36 Crore already incurred through IR shall be recouped as detailed below: (` In Crore) Name of Project Expenditure upto Debt Component Debt availed (31.03.2022) Expenditure due for 31.03.2022 (70% as per CERC recoupment Norms) 1 2 3 4 5=3-4 PSP 4519.48 3163.63 Bond Series 2420.00 499.05 II, III, IV & V PNB 244.58 Total 2664.58 Khurja 3991.24 2793.87 Bond Series III & V 1500.00 493.87 BOB 800.00 Total 2300.00 Amelia 676.34 473.44 Bond Series IV 125.00 348.44 Total 1341.36 Thus, the total debt requirement for 2022-23 and 2023-24 is estimated for ` 5562.69 Crore. In order to meet out above debt requirement, THDC has issued Bond Series VI of ` 300 Crore with Green Shoe option of ` 500 Crore aggregating to ` 800 Crore. Besides this loan financing from Bank/ Financial Institution of ` 2500 Cr is also under tendering process. The proceeds of same shall be utilized towards recoupment of expenditure already incurred and debt requirement of under construction projects. 22 Proposal 1. Considering the facts explained above and to meet out fund requirement of ongoing under construction projects and taking consideration of loan of ` 2500 Crore and Bond series VI of ` 800 Crore, which was issued on 12.09.2022, it is proposed to raise funds up to ` 3000 Crore through issue of Secured/ Unsecured, Redeemable, Non-Convertible bonds for tenure of ten to fifteen years with or without put/call option in suitable tranches. The nature of bond i.e. secured/ unsecured shall be decided based on availability of security at the time of issue. The tentative term sheet of proposed Bond issue is as below : Tentative Term Sheet for proposed Bond Issue of THDC India Ltd. Issuer THDC India Ltd. Type of Instrument Secured/Unsecured Redeemable, Non-convertible, Non-cumulative, Taxable bond in the nature of debentures. Nature of Instrument Secured/Unsecured Mode of Issue Private Placement Listing (including name of Stock Exchange(s) where it will Proposed on the Wholesale Debt Market (WDM) Segment of National Stock be listed and timeline for listing) Exchange (NSE) / Bombay Stock Exchange (BSE) Limited. Issue Size Upto ` 3000 Crore in suitable tranches Option to retain oversubscription (Amount) Yes with Green Shoe Option Objects of the Issue To partly meet debt requirements of ongoing Projects under Construction including Recoupment of expenditure already incurred and to refinance the Existing loans. Put Call Option Based on requirement Coupon Rate To Be discovered Coupon Payment Frequency Annual Coupon payment dates Anniversary date of the date of allotment Coupon Type Fixed Coupon Reset Process (including rates, spread, effective None date, interest rate cap and floor etc.) Day Count Basis Actual Issue Price At face value ` 10,00,000 each Tenor 10 to 15 Years Redemption Amount At par ` 10 Lakh each Redemption Premium / Discount Nil Issuance mode of the instrument Demat Trading mode of the instrument Demat 2. The funds raised through bonds shall be utilized to partly meet debt requirements of ongoing Projects under Construction including Recoupment of expenditure already incurred and to refinance the Existing loans. To consider the proposal for the issue of bonds aggregating up to ` 3000 Cr in suitable tranches through Private Placement and if thought fit, to pass the following resolution as a special resolution: “RESOLVED THAT pursuant to Section 42, 71 and other applicable provisions of the Companies Act, 2013 read with Rule 14 (1) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 and any other applicable statutory provisions (including any statutory modification or re- enactments thereof), and subject to the provisions of the Articles of Association of the Company, approval of the members be and are hereby accorded to authorize the Board of Directors of the Company for raising funds upto ` 3000 Crore through issuance of Secured / Unsecured Corporate Bonds on Private Placement Basis on such terms and conditions as the Board of Directors of the Company may, from time to time, determine and in the beneficial interest of the Company including time, consideration for the issue, utilization of issue proceeds and all other matter connected with or incidental thereto. RESOLVED FURTHER THAT the Board be and is hereby authorized to do or delegate from time to time, all such acts, deeds and things as may be deemed necessary to give effect to private placement of such Bonds including but not limited to determining the face value, issue price, issue size, tenor, timing, amount, security, coupon/interest rate, yield, listing, allotment and other terms and conditions of issue of Bonds as it may, in its absolute discretion, consider necessary.” 23 OUR NATIONWIDE PRESENCE THDCIL has expanded its presence from a single project organisation to nationwide company in last two decades. Our well-envisioned planning process, complemented with a committed work force, supports seamless implementation of our strategic roadmap, and reinforces sustainable outcomes. UTTARAKHAND 1. Tehri HPP 1000 MW 2. Koteshwar HEP 400MW 3. Tehri PSP 1000 MW 4. Vishnugad Pipalkoti hep 444 mw 5. Jhelum Tamak hep 108 mw 6. Bokang Bailing 165 mw 7. Jaspalgarh psp 1935 mw is being pursued with Government of Uttarakhand RAJASTHAN Development of 10000 MW Solar Power Parks through JV Company with RRECL ARUNANCHAL PRADESH 1. Kalai – II HEP 1200 MW 2. Demwe Lower HEP 1750 MW GUJARAT 1. Patan Wind Power Project 50 MW 2. Devbhumi Dwarka Wind Power Project 63 MW MAHARASHTRA Total 6 psps namely - Malshej Ghat pss 700 mw, Humbarli pss 400 mw, Gadgadi 600 mw, Aruna 1950 mw, Kharari 1050 mw, Morawadi 2320 mw, are being pursued. UTTAR PRADESH 1. Dhukwan Shp 24 MW 2. Khurja Super Thermal Power Project 1320 MW 3. Development of 2000 Mw Solar Power Parks through JV Company MADHYA PRADESH 1. Amelia Coal Mine, Singrauli In line with the strategic intent to have a nationwide presence, THDCIL is under process to sign MoUs (Memorandum of TAMIL NADU Understanding) with PSUs, State Government Agencies and other government organizations to develop Hydro, Renewable Energy and 1. Nallar 2700 MW is being pursued in state of Tamil Nadu Thermal Projects nationwide. KERALA 1. Solar Power Project, Kasargod 50 MW 2. Two PSPs namely Idduki 300 MW and Pallivasal 600 MW are being pursued. 24 DIVERSIFICATION IN POWER GENERATION In line with the objective of growing the share of Renewable Energy, THDCIL has focus on energy diversification driven by clean, green and affordable power for future generations. THDCIL is the only PSU in the country, which has Hydro, Thermal, Solar, Wind Energy and Pumped Storage Projects in its portfolio. THDCIL realizes its responsibility towards providing 24X7 power at affordable prices. Over the years, THDCIL has made conscious efforts to steadily increase renewables in energy mix. During the year, THDCIL has signed an MoU with RRECL for developing Renewable Energy Parks of 10000 MW capacity in the state of Rajasthan. Ministry of Power, GOI has allotted 02 Nos Hydro-Electric Projects (Kalai-II 1200 MW and Demwe Lower 1750 MW) in Lohit Basin of Arunachal Pradesh to THDCIL to pursue with the State Govt. for carrying suitable analysis and preparation of evaluation report. THDCIL is also exploring possibilities for development of Energy Storage Schemes through Pumped Storage Projects in Maharashtra and Kerela. THDCIL is in process of signing MoU for development of hydro projects in the state of Uttarakhand through Joint Venture Company between THDCIL and UJVNL, which is to be incorporated shortly. Hydro Electric Plant Green Hydrogen Pump Storage Plant Plant DIVERSIFICAITON Wind OF THDCIL IN Power Solar Power NEW ENERGY AREAS Carbon Capture Thermal Power Development Solar Power Parks Hydro Electric Plants Tehri HPP 1000 MW, Koteshwar HEP 400 MW & Dhukwan SHP 24 MW are operational Hydro Projects. First unit of Vishnuagad Pipalkoti (444 MW) is anticipated to be commissioned by Oct-2024. Pump Storage Plant First unit of Tehri PSP (1000 MW) is anticipated to be commissioned by April 2023. Wind Power 63 MW Dwarka & 50 MW Patan, Gujarat are operational Wind Power Plants Development of Solar Power Parks Solar Power parks of 2000 MW in the state of Uttar Pradesh are under construction through JV Company TUSCO Limited. Incorporation of JVC between THDCIL & RRECL is under process for development of Renewable Energy Park of 10000 MW in Rajasthan. Thermal Power First unit of Khurja STPP (1320 MW) is anticipated to be commissioned by Feb-2024. Solar Power 50 MW Kasargod Solar Plant is operational Solar Project Green Hydrogen Plant THDCIL has planned to install Green Hydrogen production and Hydrogen fuel cell based micro-grid as a pilot project. Carbon Capture THDCIL is in process of implementing a Pilot Project for carbon capture at Khurja STPP (2x660 MW) with a newly emerging cost-effective carbon capture technology. This shall help in removing majority of carbon-based emission (CO2, Methane etc) from exhaust gases. 25 KEY FINANCIAL PERFORMANCE HIGHLIGHTS KEY FINANCIAL INFORMATION Amount in ` Crore 2021-22 2020-21 2019-20 2018-19* 2017-18 A. Revenue 1 Revenue from Operations 1921.49 1796.01 2123.10 2449.26 2185.10 2 Other Income 305.85 705.92 282.26 394.09 38.09 3 Deferred Revenue on account of Irrigation Component 16.24 18.80 63.74 69.15 68.22 4 Less: Depreciation on Irrigation Component 16.24 18.80 63.74 69.15 68.22 5 TOTAL REVENUE 2227.34 2501.93 2405.36 2843.35 2223.19 B. Expenses 6 Employees Benefits Expense 354.11 388.78 360.30 411.83 306.49 7 Generation, Administration & Other Expenses 287.06 230.33 239.33 209.78 203.42 8 Provisions 0.00 0.25 0.00 49.85 0.00 9 Extraordinary items 0.00 35.65 0.00 0.00 0.00 10 TOTAL EXPENDITURE 641.17 655.01 599.63 671.46 509.91 11 GROSS MARGIN(PBDIT) (5-10) 1586.17 1846.92 1805.73 2171.89 1713.28 12 Depreciation & Amortisation 302.65 317.33 576.10 555.00 574.52 13 GROSS PROFIT(PBIT) (11-12) 1283.52 1529.59 1229.63 1616.89 1138.76 14 Finance Cost 134.11 181.93 240.34 199.54 227.87 15 Profit before Tax and net movement in regulatory deferral 1149.41 1347.66 989.29 1417.35 910.89 account balance (13-14) 16 Income Tax 189.34 229.60 163.12 306.59 190.56 17 Deferred Tax Asset 35.57 68.48 (53.02) (66.76) (50.83) 18 Profit for the period before net movement in regulatory 924.50 1049.58 879.19 1177.52 771.16 deferral account balances (15-16-17) 19 Net Movement in Regulatory Deferral Account Balance (29.72) 42.83 41.06 12.39 Income/ (Expense) 20 Profit for the period from continuing operations (18+19) 894.78 1092.41 920.25 1189.91 771.16 21 Other Comprehensive income 1.59 0.23 (12.47) (2.99) 5.63 22 Income Tax on OCI- Deferred Tax Assets/ Liability 0.55 0.08 (4.35) (1.04) 1.95 23 Total Comprehensive Income (20+21+22) 896.92 1092.72 903.43 1185.88 778.74 C. Assets 24 Tangible and Intangible Assets (Net Block) 6343.72 6562.21 6592.19 6830.99 7328.01 25 Capital Work In Progress 9447.39 6414.30 4989.80 4544.34 3950.27 26 Right of Use Assets 411.72 410.50 380.71 0.00 0.00 27 Long term Loans and Advances 36.12 39.25 38.90 40.79 44.83 28 Deferred Tax Assets (Net) 836.29 871.31 939.71 891.04 825.32 29 Non Current Tax Assets (Net) 43.21 32.49 24.55 67.85 0.00 30 Other Non- Current Assets 2042.24 1906.22 1582.89 1209.42 715.47 31 Current Assets 1823.72 2303.52 2813.65 1905.59 1596.40 32 Regulatory Deferral Account Debit Balance 98.69 169.72 186.22 87.81 33 Investment in subsidiary co. 14.80 7.40 34 Total Assets 21097.90 18716.92 17548.62 15577.83 14460.30 26 2021-22 2020-21 2019-20 2018-19* 2017-18 D. Liabilities 35 Equity Share Capital 3665.88 3665.88 3665.88 3654.88 3627.43 Other Equity 36 Reserves and Surplus 6655.77 6269.19 5884.53 5120.18 4880.93 37 Other Comprehensive Income (15.50) (17.64) (17.94) (1.12) 2.91 38 Total Other Equity 6640.27 6251.55 5866.59 5119.06 4883.84 39 Long Term Borrowings 6653.98 5014.22 3946.70 2652.01 2415.30 40 Non Current Lease Liabilities 29.99 9.19 10.26 0.00 0.00 41 Other Long Term Liabilities and Provisions 1155.09 1015.01 1038.20 1325.17 1354.78 42 Short term Borrowings 926.10 700.00 1115.06 1218.40 646.63 43 Current Maturity of Long Term Debt 426.63 533.51 595.15 544.37 1012.83 44 Current Maturity of Lease Liabilities 4.17 4.06 5.62 0.00 0.00 45 Other Current Liabilities 1080.59 973.27 686.53 493.97 456.36 46 Regulatory Deferral Account Credit Balance 515.20 550.23 618.63 569.97 63.13 47 Total Liabilities 21097.90 18716.92 17548.62 15577.83 14460.30 48 Net Worth (35+38) 10306.15 9917.43 9532.47 8773.94 8511.27 49 Capital Employed (48+43+42+39-28) 17476.57 15293.85 14249.67 12297.68 11760.71 50 Dividend 508.20 707.75 126.00 423.12 335.21 51 Value added (11) 1586.17 1846.92 1805.73 2171.89 1713.28 52 Number of Employees 1644 1736 1835 1891 1922 53 Number of share (in Crore) (Par value of ` 1000/- share) 3.67 3.67 3.67 3.65 3.63 E Ratios Earning per share including net movement in regulatory 244.08 297.99 251.22 326.35 213.14 deferral account balance (Par value of ` 1000/- share) (in `) Current Ratio [31 / (42+43+44+45)] 0.75 1.04 1.17 0.84 0.75 Debt to Equity ((39+42+43) / 48) 0.78 0.63 0.59 0.50 0.48 Return On capital Employed (PBIT/ Capital Employed) 7.34% 10.23% 8.63% 13.15% 9.68% [(13+9) / 49] Return on Average Net Worth 8.85% 11.23% 10.05% 13.77% 9.28% Total Comprehensive Income to Revenue from Operations 46.68% 60.84% 42.55% 48.42% 35.64% (23 / 1) Book value per share (in `) (48/53) 2811.37 2705.33 2600.32 2400.61 2346.36 Value added per employee (` in Crore) (51/52) 0.97 1.06 0.98 1.15 0.89 Dividend Per Share (in `) (Share of `1000/- each) 138.63 193.06 34.37 115.77 92.41 F Operating Performance Generation (M.U.) 4670.80 4565.36 4526.85 4687.18 4540.94 * Data is on the basis of restated financial statements. 27 KEY FINANCIAL PERFORMANCE CHARTS NET WORTH v/s BORROWINGS Amount in ` Crore 20000 NET WORTH V/S BORROWINGS 18000 Amount in Crore 16000 7080.61 NET WORTH V/S 5547.73 14000 BORROWINGS 4541.85 12000 3428.13 3196.38 10000 8000 10306.15 Borrowings (Long Term Borrowings 9532.47 6000 9917.43 + Current Maturity of long Term 8773.94 8511.27 4000 Borrowings 2000 Net Worth (Share Capital + Other Equity) 0 2017-18 2018-19 2019-20 2020-21 2021-22 TOTAL REVENUE v/s TOTAL COMPREHENSIVE INCOME Amount in ` Crore Total Revenue V/S TOTAL COMPREHENSIVE INCOME Amount in Crore 3000 TOTAL REVENUE V/S TOTAL COMPREHENSIVE INCOME 2500 2843.35 2000 2501.93 2405.36 2227.34 1500 2223.19 TOTAL REVENUE 1000 Total comprehensive income 1092.72 1185.88 896.92 500 903.43 778.74 0 2017-18 2018-19 2019-20 2020-21 2021-22 28 DIVIDEND PAYOUT 25 20 % Dividend to Share 19.31 15 Capital 13.86 10 11.58 9.24 5 0 3.44 2017-18 2018-19 2019-20 2020-21 2021-22 BREAK UP OF REVENUE FROM OPERATIONS Renewable Energy Project and Consultancy 9% Koteshwar HPP Tehri HPP 30% 61% DISTRIBUTION OF REVENUE Employees Total Bene ts Expensive Comprehensive 16% Income Generation 40% Administration & Other Expenses 14% Depreciation & Amortisation Income Tax 14% 10% Finance Cost 6% 29 DIRECTORS’ BRIEF PROFILES SHRI RAJEEV KUMAR VISHNOI SHRI JITHESH JOHN Sh. R. K. Vishnoi has assumed the charge of Shri Jithesh John, Economic Adviser, Chairman and Managing Director of THDC Ministry of Power has been appointed as India Limited on 06.08.2021. Prior to this, Sh. Nominee Director, Govt. of India in THDC Vishnoi was discharging the responsibilities India Limited w.e.f. June 21, 2021. He of Director (Technical) w.e.f. 01.09.2019 belongs to the Indian Economic Service in THDCIL. He outlined that his first and (2001 batch). In the Ministry of Power, he foremost priority will be to transform THDC as a seasoned power handles matters relating to planning, project monitoring, training sector company in dynamic contemporary power scenario. He and research. Prior to this assignment he has worked in the also stressed on boosting in-house innovative interventions in Planning Commission, Ministry of MSME and Ministry of Finance operational as well as under-construction projects. and has worked on areas like PPP in Infrastructure, promotion of small businesses and development of financial markets. Shri He has been entrusted the additional charge of Director Jithesh has done his post-graduation (MA) in Economics from (Technical) and Director (Personnel) in THDCIL w.e.f 06.08.2021 Loyola College, Chennai. He has also undergone professional and 01.11.2021 respectively. Further, he is also been entrusted training at IIM Ahmedabad, IIM Bangalore, RMIT University, with Additional charge of Chairman and Managing Director and Australia and University of Maryland, USA. Director (Technical) of NEEPCO w.e.f. 01.06.2022. SHRI ANIL GARG Sh. R.K. Vishnoi has more than 35 years of vast and rich experience in Design, Engineering and construction of hydro Shri Anil Garg, Principal Secretary, Irrigation project structures. He joined THDCIL in year 1989 at the level & Water Resources Deptt, GoUP has of Engineer and worked in different capacities and rose to the been appointed as Nominee Director of level of General Manager in year 2013 and thereafter elevated as Government of UP on the Board of THDC Executive Director in year 2016. Apart from heading the Design India Limited w.e.f. 26.04.2022. He belongs Department, he also held the additional charge of Executive to the 1996 batch of India Administrative Director, Vishnugad-Pipalkoti Hydro Electric Project (VPHEP) Services and prior to his appointment as Principal Secretary, 444MW.He has various prestigious achievements to his credit Irrigation & Water Resources Deptt. He was serving as CEO of while working with the Tehri, Koteshwar and Vishnugad-Pipalkoti UPSIDC. hydro projects. Shri Garg is a graduate in electronics and communication from Sh. Vishnoi is an Hons. Graduate in Civil Engineering from BITS Thappar University, Patiala. After becoming IAS officer in the Pilani and he has also attained the qualification of MBA and has year 1996, He has served as Joint Magistrate, District Magistrate undergone Professional Up-gradation Programme in Design , Excise Commissioner in Allahabad, CEO in Highway Deptt., and Construction of Hydraulic Structures and Hydropower Gautam Budh Nagar, Additional Chief Electoral Officer, Lucknow Constructions from State University of Moscow, Russia. and Commissioner, Revenue Deptt, Lucknow and other offices of repute. Shri Anil Garg has been awarded by Ministry Of He is also currently representing India in international Science, Technology, Government Of India in India International Commission on Large Dams for Technical Committee on Science Festival. Further, he is also conferred with other awards Seismic Safety of Dams. for Manarega works, International Yoga Day, Ground Breaking He has delivered notable keynote lectures in several countries Ceremony And One District One Product, Revenue Collection such as Spokane(US), Washington DC (US), St. Petersburg etc. Shri Anil Garg has also been conferred various awards in (Russia), Chengdu (China), Beijing (China), Porto Carras state level, national and international level. (Greece), Antalya (Turkey), Ottawa (Canada), Singapore and SHRI J. BEHERA Nepal. Shri J. Behera is Director (Finance) of THDC India Limited since16.08.2019. He is a graduate in commerce and a Member of The Institute of Cost Accountants of India. He has a vast experience of more than 32 30 years in various areas of Finance and Accounts department of served as Director (Finance) of NLC India Limited. He has also THDC. He has the experience of working at Project site as well served as Director (Finance) of Maharashtra State Electricity as Corporate Office. He also holds the position of Chief Financial and Distribution Company Limited, prior to which he was the Officer and Key managerial personnel (KMP)of the company Director (Finance) of Maharashtra State Power Generation since last four years. He was instrumental in computerising Company (MAHAGENCO), Govt of Maharashtra entities. He activities of Finance and Accounts department by developing also served as part time Director in Mahaguj Colliery Company and implementing Financial Management System (FMS) as Limited, UCM Coal Company Ltd. and other subsidiary company project leader. He also played a key role in THDCIL bond issue of MAHAGENCO and foray in to Wind Power sector. DR. JAYAPRAKSH NAIK B. SHRI UJJWAL KANTI BHATTACHARYA Dr. Jayaprakash Naik B has been appointed Shri Ujjwal Kanti Bhattacharya has been as an Independent Director in THDC India appointed as Nominee Director of NTPC Limited w.e.f. 10th November 2021 for a Limited on the Board of THDC India Limited period of 3 Years. He has completed his w.e.f. 26.08.2020. He is an Electrical PhD in Agriculture Science from University Engineering Graduate from Jadavpur of agricultural sciences, Bangalore. He has University, Kolkata. He has also completed a vast experience of more than 30 years in the field of Genetics his PG Diploma in Management from MDI, Gurgaon. Shri and Plant breeding.He retired as an Associate Director and Bhattacharya joined NTPC in the year 1984 as Ninth Batch of Head of Regional Agricultural Research Station from Kerala Engineering Executive Trainees and was initially posted at NTPC Agricultural University. He also worked as Associate Director Korba. He started his career in Green Field Project Construction, Research Coconut Mission & Head of the Department of Plant followed by working in the areas of Power Plant Operation Breeding at Kerela Agriculture University. His contributions in the & Maintenance, Renovation & Modernization, Environment field of Agricultural sciences are exemplary. Management, and Technical Services at 1600 MW Farakka STPP . He has significantly contributed for NTPC’s vertical & horizontal SMT. SAJAL JHA business diversification as well as growth through inorganic Smt. Sajal Jha has been appointed as an route. He had illustrious career in Business Development Independent Director in THDC India Limited function of NTPC in Domestic as well as International Arena with w.e.f. 10th November 2021 for a period of 3 special focus on NTPCs diversification into hydroelectricity with Years. She is a law graduate from Magadh acquisition of Koldam and setting up of subsidiary company University, Bihar. She is a practicing lawyer NESCL for electricity distribution business. He has been at the in Patna High Court since the year 2010. forefront of JV formulation & Project conceptualization for 1320 She is also a social worker and committed to empowerment MW Maitree Power Project at Bangladesh. Before appointment of women in the state of Bihar. She has contributed in various as Director (Projects), NTPC he has worked as MD and CEO areas of women empowerment through skill development (Bangladesh India Friendship Power Company Limited), ED training programes. She is also associated with various NGOs (Business Development) and ED(Projects), NTPC. in Patna for Social Work and Women Empowerment. She is BJP SHRI JAIKUMAR SRINIVASAN State Secretary in Bihar. Shri Jaikumar Srinivasan has been SHRI KESRIDEVSINGH D. JHALA appointed as Nominee Director of NTPC Shri Kesridevsingh D. Jhala has been Limited on the Board of THDCIL w.e.f. appointed as an Independent Director in 17.08.2022. He is a Commerce Graduate THDC India Limited w.e.f. 28.03.2022. and an Associate Member of the Institute He is a Graduate in Tourism and Leisure of Cost Accountants of India. Shri Management from the University of Jaikumar Srinivasan has more than 30 years of experience Huddersfield, Yorkshire, U.K. He is Active in Power and Mining sector in State and Central PSUs in the in social forestry since 2013 through various local institutions. field of Finance, Accounts, Taxation, Commercial, Electricity The latest project in 2021 being of planting 45000 indigenous regulation, Renewables, IT, Project development etc. with 8 trees locally. He is also a sportsperson and played cricket at years Board level exposure. Shri Jaikumar Srinivasan has taken important formats at National and International Level. He also charge as Director (Finance), NTPC on 21.07.2022. Before holds key positions in some social institutions active in India. his appointment as Director (Finance), NTPC Limited, he has 31 BUSINESS SUSTAINABILITY REPORT 2021-22 CAPITAL CREATION IN SUSTAINABLE WAY 32 Financial Capital THDCIL values financial interest of all its stake holders and always thrives to optimize value addition to its financial capital by earning profit along with discharging its social responsibility not just restricting itself to statutory minimum but consistently surpassing the targets. Gross Income Total Comprehensive Income Net Worth ` 2227.34 Crore ` 896.92 Crore `10306.15 Crore Paid up Equity capital of THDCIL as on 31.03.2022 is ` 3665.88 crore, reserves upto 31.03.2022 is ` 6640.27 crore and long term borrowing is ` 7080.61 crore. Financial Capital (` in crore) 3665.88 7080.61 Equity Reserve Long Term Borrowings 6640.27 Financial capital generated after commercial operation through accumulation of profit up to 31.03.2022 works out to ` 10,295.63 crore, out of which, the dividend distributed including tax up to 31.03.2022 is ` 3655.36 crore, and reserved for plough back is ` 6640.27 crore. 33 Balance Sheet Size Amount in crore Balance Sheet Size Amount in Crore 25000.00 20000.00 15000.00 21097.90 25% 18716.92 10000.00 17548.62 15577.83 14460.30 % % 25% 25% 25 25 5000.00 0.00 2017-18 2018-19 2019-20 2020-21 2021-22 Balance Sheet Size DIVIDEND PAYMENT The company is consistently paying dividends to its shareholders in form of interim and Final Dividend. DIVIDEND PAYMENT Dividend Declared for the Year 450 400 350 300 423.12 250 402.71 200 305.04 317.36 150 256.1 197.94 190.84 100 126 50 0 2017-18 2018-19 2019-20 2020-21 2021-22 Interim (In Cr) Final (In Cr) 34 Credit Rating and Annual Surveillance Credit rating agencies viz. M/s Care Ratings Limited, M/s India Ratings and M/s ICRA have assigned credit rating of THDCIL as AA (Stable). It indicates high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low risk. The Company’s financial discipline, efficient capital structure and prudence is reflected in the strong and stable credit ratings ascribed by these rating agencies. The Company continues to enjoy stable credit ratings for its bonds programme and borrowings from banks, There has not been any revision in credit rating during the relevant financial year. SERIES RATING AGENCY RATINGS RATINGS LAST REVIEWED CORPORATE BOND SERIES I India Ratings AA (Stable) 04th July, 2022 CARE AA (Stable) 27th June, 2022 CORPORATE BOND SERIES II India Ratings AA(Stable) 04th July, 2022 ICRA AA (Stable) 11th January, 2022 CORPORATE BOND SERIES III ICRA AA (Stable) 11th January, 2022 CARE AA (Stable) 27th June, 2022 CORPORATE BOND SERIES IV ICRA AA (Stable) 11th January, 2022 CARE AA (Stable) 27th June, 2022 CORPORATE BOND SERIES V India Ratings AA (Stable) 04th July, 2022 CARE AA (Stable) 27th June, 2022 NEW INITIATIVES-2021-22 Social And Relationship THDCIL has successfully issued the THDCIL Bond Series V amounting ` 1200 Crore with a coupon rate of 7.39% p.a. The company received Capital an overwhelming response from the investors which shows the faith and trust of our stakeholders in the company. As a socially responsible organisation, THDCIL has always adopted CSR During Financial Year 2021-22, THDC India Limited has signed an programs on holistic development agreement with Bank of Baroda for term Loan of ` 2500 Crore to meet approach rather than addressing the the CAPEX requirement of the company. The interest rate is one month needs of the stakeholders in piecemeal MCLR without any strategic premium. The above fund shall be utilized by implementing long term Holistic to meet out the CAPEX requirement of Khurja STP and Amelia Coal Development Programme involving Mine. activities for Ecological Restoration and Socio-Economic Empowerment EXPEDITIOUS REALISATION OF DUES FROM DISCOMS: of Rural Communities for Sustainable Livelihood. All the CSR interventions The company had realised ` 2523.03 Crores during FY 2021-22. were made considering all three spheres i.e. social, economic and The amount of realization is on the higher side due to disbursement environment development and sustainable change in the lives of of major outstanding amount by most of the beneficiaries against the targeted communities, which is evident from THDCIL’s CSR identified Atamnirbhar Bharat Special Economic and Comprehensive Package domains named by the objective they seek to achieve under its CSR & disbursement of Late Payment Surcharge outstanding amount Programme titled “THDC Sahridaya” (Corporate with a Human Heart) against the Ministry of Powers notification for Electricity (Late Payment in its CSR & Sustainability Policy 2021 itself formulated in compliance Surcharge) Rules, 2021, which in turn resulted in substantial reduction of Section 135 (1) of the Companies Act 2013 and subsequent in outstanding amount. Companies (Corporate Social Responsibility) Rules, 2014. The 9 CSR identified domains broadly encompassing the activities enlisted in Further, in compliance to Payment Security Mechanism almost all the Schedule VII of the Act are as under: beneficiaries had disbursed the monthly Energy bills payment within the scheduled time which soared the amount of realisation from DISCOMs i. THDC Niramaya (Health) - Nutrition, Health and Sanitation and during FY 2021-22. Drinking Water projects 35 ii. THDC Jagriti (Initiatives for a Bright future) – Education initiatives 1. THDCIL in association with Shaheed Bhagat Singh (Evening) College, Delhi University, runs one Allopathic Dispensary at village iii. THDC Daksh (Skill) - Livelihood Generation and Skill development Deengaon, which is located in the remotest area of district Tehri. initiatives Medical consultation on nominal rates and free of cost medicines iv. THDC Utthan (Progress)- Rural Development are provided. This allopathic dispensary caters around 15000 population of surrounding approx. 40 villages. Annual Expenditure v. THDC Samarth (Empowerment)- Empowerment initiatives of this dispensary is apporx. ` 30 lakh. vi. THDC Saksham (Capable) - Care of the aged and differently abled 2. THDCIL runs 1 Homeopathy Dispensary at Rishikesh, 2 vii. THDC Prakriti (Environment) - Environment protection initiatives viii. THDC Virasat (Culture) – Art & Culture protection & promotion initiatives. ix. THDC Krida (Sports) – Sports promotion initiative. THDCIL also has a Board approved CSR Communication strategy in place for regular dialogue and communication with stakeholders regarding the selection and implementation of CSR and sustainability activities. Our CSR Spending THDCIL integrates its CSR and Sustainability planning with its business plans and strategies. The activities are planned well in advance, targets are fixed at different milestones, with pre-estimation of quantum Homeopathy clinic at Rishikesh of resources required within the allocated budget and having a definite time span for achieving desired outcomes. As per statutory compliance, total amount Dispensaries in Dist. Tehri and 1 dispensary in Dist. Uttarkashi to be spent during the financial year is two percent of average net profit which provides consultation and medicine at nominal charges. (PBT) of the last three financial years calculated as per Companies Homeopathic system has very effective treatment regimen for Act,2013. ailments found commonly in the hills including skin disease, joint pains, corn (due to walking on uneven terrain), breathing issues, • Average Net Profit of three immediate preceding financial years : and gynaecological problems amongst others. The treatment is ` 1311.66 Cr much cheaper than the allopathic treatment and has proven track • CSR Budget for FY 2021-22 : ` 26.23 Cr. record for chronic ailments. • Actual CSR expenditure during FY 2021-22 : ` 27.21 Cr. 3. Multi-Speciality Medical Camps: Every year SEWA-THDC also PROMINENT INITIATIVES conducts different multispecialty medical camps at various location A. HEALTH of project affected areas and rehabilitation sites. THDCIL, continuously strives to come up with solutions and health services facilities through EDUCATION B. & LIVELIHOOD various health camps and awareness drive DEVELOPMENT with reputed hospitals and institutions. Some major community oriented efforts of THDC in Effective interventions have been made for the area of health are as under- providing education to deprived/under privileged communities, establishment of centre for higher & technical education, vocational education and infrastructural support. One of the prominent interventions under education domain as under: 1. Running Schools for deprived/under-privileged communities: THDCIL is running two schools at Bhagirathipuram and Koteshwar in district Tehri and one school at Rishikesh in district Dehradun for deprived/weaker section communities having collective strength of about 950 plus students including approx. 50% girls with free of cost uniform, books & stationary, bus service etc. and Mid Day Meal under “Naivedyam” scheme Community hospital at VPHEP 2. Sponsoring skill development courses: THDCIL for promotion of livelihood and employability among the youths & residents 36 of local area implements numerous activities like (i) sponsoring and community at large as well as actions we take to promote skill development courses namely ITI, ANM, GNM, Diploma in natural resource preservation / environmental mitigation. Plastic Technology, Diploma in Computer Application, Diploma in Professional Accounting, Post Graduate Diploma in Computer “THDCIL, since inception, has placed Natural Capital as one of its key Application, Surya Mitra, etc. (ii) vocational training to women focus areas. The efforts by the company have focussed on all aspects / farmers on Mushroom Cultivation, Beautician, Tailoring, etc. of reducing environmental impacts, includes Reduction of atmospheric (iii) promotion & establishment of Poly houses, Farm Machinery emissions (especially greenhouse gases), Adoption of measures Banks, SHGs, vermin compost, etc. (iv) training of SC artisans on for soil and water conservation, biodiversity conservation, Wildlife Ringal, etc. protection, Reduction of waste at source, reuse and recycling of waste and Green Belt development.” A. CONTRIBUTION IN ECONOMIC DEVELOPMENT OF COUNTRY ALONG WITH SAVING VARIOUS NATURAL RESOURCES • Since 2006-07 till 2021-22, THDCIL is continuously powering the nation and has generated 62374.893 MU of Clean Energy through its hydro, wind and solar power plants which are clean and green source of power. This power has helped in Environment, Social and Economic development of the country. • THDCIL has been instrumental in helping the country by way of generating electricity through its RE projects, which otherwise could be produced by burning considerable amount of coal, natural gas, and petroleum to produce the same amount of Establishment of Electric Vehicle charging station electricity. If above savings is compared with the data published at Distt. Haridwar by the U.S. Energy Information Administration for quantity (annual average) required to produce one kilowatt-hour (kWh) of C. ENVIRONMENT & CLEAN ENERGY electricity through coal, natural gas, and petroleum fuels, THDCIL has been able to save approximately 32434944.72 Metric Tonnes THDCIL also implements numerous CSR activities for promotion of coal or 630610175 Mcf of Natural Gas or 107908566.1 barrels of environment and clean energy. To complement the efforts of petroleum till 2021-22 through power generation of its RE of Govt. of India for mitigation of climate change, THDC has projects. established Uttarakhand’s First Public Electric Vehicle Charging Station in Dist. Haridwar. In addition, THDCIL installed Solar based B. Creation of Carbon Sink: Green Belt Street Lights & LED Street Lights. To promote use of electricity in cooking and to discourage fuel wood in cooking, Induction The main natural carbon sinks are plants, the ocean and Cook Top along with utensils were distributed in the hilly villages soil. Trees grab carbon dioxide from the atmosphere to use in of Dist. Tehri Garhwal, etc. THDCIL also promotes development photosynthesis, delivering useful life-giving air “the oxygen”. of cluster based fruit farms like Kiwi Some of this carbon is transferred to the soil environment, as & Apple. For the promotion of water plants die and decomposes. conservation THDCIL has constructed more than 500 rain water harvesting • Acknowledging the importance of trees in natural system, tanks in hill areas of Tehri Garhwal. THDCIL is committed to protect the forest and trees and wherever In convergence with Govt. Dept. cutting of forest is necessary for project activity, THDCIL strictly THDCIL has supported community follows the Compensatory Afforestation guidelines as per Forest in development of LDPE Tanks, Chal Protection (Conservation) Act 1980. Khal, Ponds, Water check dams, etc. • Green Belt Development: The Green Belt has so far been developed over 1138 ha land at Tehri HEP and over 450 ha land at Natural Capital KHEP . • Compensatory Afforestation: Against Tehri power complex, Natural Capital can be defined as the compensatory afforestation has been done in 3959 ha in district world’s stocks of natural assets which Lalitpur, UP, 638.22 ha land in Jhansi, UP and 2716.40 ha of include geology, soil, air, water and degraded forest land in Khanpur Forest Range in Haridwar, all living things. It refers to the natural Uttarakhand. resources we use or save to create values for our external and internal stakeholders • Catchment Area Treatment: CAT plan has been implemented in 52204 ha. (44157 ha forest land + 8047 ha. Agriculture land). • Green Belt will be developed over 400-acre land across the KSTPP with around 2000-2500 trees per hectare in multi layer and plant 37 height will be 6-10 ft at the time of plantation. This will play an Aloe Vera etc. have been planted. An expenditure of ` 19.61 important role in pollutant trapping as well as in the carbon sink. lakhs have been incurred upto March 2022 for development and maintenance works in the Herbal Garden. BIODIVERSITY CONSERVATION & ECOLOGICAL C. BALANCE: Herbal Garden, Fish Management, Wild Life • As per the recommendations of the Directorate of Coldwater Protection. Fisheries Research (DCFR), Bhimtal, a Fish Hatchery for conservation of the Snow Trout Fishes is being constructed at With a Commitment for Biodiversity Conservation & Ecological VPHEP . Already Hatchery for Mahasheer fish is functioning at Balance THDCIL has carried out following activities: Koteshwar project. • In addition to already existing herbal • The entire project site of THDCIL has the Environmental garden at Tehri project, Herbal Garden Management plan, to protect and conserve the nearby natural has been developed in the VPHEP over resources, wild life and the archaeological assets. an area of 1800 sqm approx. The herbal garden has been developed and is being • Green Belt Development at Khurja STPP: Green Belt Development maintained by THDCIL in consultation Plan is proposed in an area of 400 acres. Proposal/estimate has with Herbal Research and Development been finalized through State Forest Deptt., UP. The plantation work Institute, Mandal Gopeshwar. Various under GBD is in progress and has completed approximately in medicinal plants like Harad (Terminalia chebula), Lemon Grass 20 ha (~ 60 acres) of land at the outer periphery of the project (Cymbopogon felxuosus), Sarpgandha (Rauvolfia serpentiina), boundary. • THDCIL has empanelled third party e-waste handlers authorized by Central Pollution Waste Control Board (CPCB) for disposal of e-waste. Management • The canteen and horticultural waste being generated at Rishikesh Township are being Practices utilized in a Biogas plant, developed based on the TERI’s patented technology-TEAM (TERI’s Enhanced Acidification and Methanation) process. • Dumping of muck is being done at identified area & well above the high flood level. Muck Engineering measures and Biological measures are adopted at sites for muck Management handling in environment friendly manner. • Work of plantation of Vetivar (Chrysopogon Zizanioides) grass as slope stabilization measure at Dumping yards at VPHEP has been started from September 2018. Environment • Periodic monitoring of air, water and noise quality is being done. As of now, all the Monitoring parameters of air, water and noise quality are under permissible limits guided by Central Pollution Control Board. • THDCIL is committed to safe gaurd all the nearby ecosystem. VPHEP Environment Management Plan has a separate head for wild life protection. THDCIL also provides Wild life LPG gases and mess facility to all the labour camps, to reduce their dependacy over Protection the forest for the fuel wood and poaching of the wild animal. Also a regular awareness programme related to wild life protection conduct at project site. D. ENVIRONMENT MANAGEMENT AT KHURJA STPP emission of hazardous gases and particles into the atmosphere. Some of these techniques are listed below; THDCIL has also been entrusted with a coal based 1320 MW Khurja Super Thermal Power Station at Khurja in the State of Uttar Pradesh, • Electrostatic precipitators (ESP) with 99.89% efficiency would wherein various Environment Management and Protection Activities be installed to control the emission of fly ash particles. The envisaged under the EIA-EMP report are to be executed pari-passu with precipitators would be designed to limit the particulate matter the construction activity. concentrations below 30 mg/Nm3. SAFEGUARD AGAINST ATMOSPHERIC POLLUTION • The boilers will be provided with Low NOx Burners and the flue gases shall be passed through Selective Catalytic NOx Reduction By using some advance tools and techniques at Khurja STPP , (Part and Flue gas desulphurization systems to limit NOx and SO2 of Environmental management plan) THDCIL is protecting the direct concentrations below 100 mg/Nm3. 38 • The flue gases will be re-heated and discharged through a stack of carried out by M/s Central Power Research Institute, Bangalore 150 m height. since 2011-12. E. THE SOLID WASTE MANAGEMENT PLAN In F.Y. 2021-22, Condition monitoring work of EM-equipment of Tehri HPP and Koteshwar HEP was carried out and test results Khurja STPP: have confirmed the healthiness of equipment. Ash will be the major solid waste generated from the power project. • Technical Audit of Tehri HPP and Koteshwar HEP by Central An ash management scheme shall be implemented consisting of dry Board of Irrigation and Power(CBIP) collection of fly ash, supply of ash to entrepreneurs for utilization and promoting ash utilization to maximum extent and safe disposal of Tehri HPP and Koteshwar HEP are flagship plants of THDCIL and unused ash. To implement this, THDCIL has a FLY Ash Management regarded as engineering marvel in the country, both projects are in Plan for Khurja EMP . commercial operation since 2006-07 and 2011-12 respectively. Both plants are managed and operated by dedicated, committed VPHEP: and competent fleet of O&M. In order to validate O&M practices, statutory requirement etc. at plants. Technical audit of both plants Domestic/Municipal Solid waste : Approximately less than 30 kg of were carried out for independent assessment and analysis of waste per day is being generated at labor camp. The segregation of O&M activities being practiced, technical audit were conducted by waste is done at source. The solid waste is being collected in 300 Nos. of CBIP and nothing adverse reported. Collection bins which have been placed at labor camp and construction sites out of which 250 nos. are for collection of biodegradable waste RESEARCH AND DEVELOPMENT and 50 nos are for Non-biodegradable waste collection. The waste is afterwards handed over to Nagar Palika for final disposal. In-house R&D activities carried out for technology absorption, state of the art Biomedical Waste: solution to recurring problems of projects and to enhance linkage with other national The safe and sustainable management of biomedical waste (BMW) organizations, academic institutions is social and legal responsibility of all people related to health-care for efficient and reliable operation and activities. Bio-medical Waste Management Rules, 2016 is being maintenance of hydro power stations. A separate R&D Department implemented for healthy humans and cleaner environment. The basic was established at Corporate Office, Rishikesh for implementation of principle of Bio-medical waste Management is segregation at source R&D activities. On-going R&D activities are as follows: and waste reduction is being followed for a greener and cleaner environment. For this purpose Biomedical waste are being placed in A. Assessment of Sediment Yield from the Catchment Area of Tehri colour coding bins.The waste is then handed over to expert agency M/s Reservoir. Medical Pollution Control Committee for final disposal. B. Operation and maintenance of 18-station seismological network Hazardous waste: deployed in region around Tehri dam and 13-station strong motion network installed in Tehri and Koteshwar dam. The Hazardous waste is being dealt as per Hazardous Waste Management rules, 2016 at VPHEP . The waste generated includes used C. Expansion & updation of Micro Seismic Network around Tehri Tyres and Tubes, Waste oil, Hydraulic oil, Gear oil, Grease, Batteries region (long Term). Comprehensive solution for slope stability of and other residue containing oil. All the waste is collected in leak proof road between Zero bridge to Koteshwar. closed vessels(Drum).Hydraulic oil and other waste oils are collected in closed containers and stored at hazardous waste collection area. Finally D. Consultancy for improvement in real time inflow forecasting waste is handed over to authorized recycler M/s Shruti Chemical. system for Tehri Dam reservoir: Intellectual Capital 1. For consultancy services and 2. For installation and commissioning Condition Monitoring of EM Intellectual capital is the group of knowledge assets equipment of Tehri & KHEP (For FY 2021-22). that are attributed to an organization and most significantly contribute to an improved competitive E. Analysis and mitigation of oscillations in Hydro Generator fed position of the organization by adding value to key Transmission lines. stakeholders. F. Study of structural integrity of submerged intake structures with NEW MEASURES FOR TECHNOGICAL UPGRADATION variation in Tehri reservoir water head with a particular reference to construction and lift joints. • Condition Monitoring of EM Equipment of Tehri HPP & Koteshwar HEP Reservoir Operation & Flood Mitigation Measures in THDCIL To improve availability, reliability, life of machines and performance Tehri reservoir filling normally begins every year from 21st June, of plant, condition monitoring and diagnostic testing of Electro- accumulating the excess inflow during the monsoon period in order mechanical equipment of Tehri and Koteshwar HEP is being to attain full reservoir level. Reservoir filling is done as per reservoir rule curve provided in the Operation & Maintenance manual of Tehri 39 Dam. The rule curve helps in filling the reservoir at pre-determined Tehri Power Complex (2400 MW) rate and keeping reasonable storage space for incoming floods during active monsoon period so that, most of the time, regulated / To achieve the maximum benefits from Tehri Dam, Koteshwar HEP has controlled discharge is passed to minimize the direct consequences been constructed downstream of Tehri Dam and is under operation. of floods downstream of the dam. The water stored in the reservoir Tehri Pump Storage Plant for which Tehri and Koteshwar reservoirs during the monsoon period is utilized to meet the peaking power/ acts as upstream and downstream reservoirs is under construction. irrigation demand during the low inflow period. The live storage of Tehri Integrated Operation of all three projects of Tehri Complex is nothing Reservoir is utilized based on dynamic reservoir operation module, so less than tight rope walking between protecting social & religious as to optimize the power generation over the year, while releasing the interests and commitment to feed Grid with high reliability and security. water as per irrigation requirement, which in-turn is governed by the Tehri HPP (4*250 MW) cropping pattern. In-priciple, the live storage, in combination with the river inflow, is expected to fulfill the irrigation requirement till the onset on monsoon of next year. Since its commissioning, the reservoir has been able to fulfill this requirement, every year. Tehri reservoir was filled up to FRL (EL 830 m), for the first time on 29th September, 2021 after the permission for filling above EL 828 m was accorded by the Government of Uttarakhand. The inflow forecasting system for Tehri reservoir having its control room at Tehri dam is operational since 2016 and presently issuing forecasts with 6 hours and 24 hours lead time which is also helping in better management of the reservoir from energy generation as well as flood management perspective. An Early Warning System (EWS) consisting of speakers/sirens at eight locations, downstream of Koteshwar Dam to Rishikesh has also been established which is operated from control rooms at Koteshwar Dam and State Emergency Operation Centre, View of Tehri Reservoir Dehradun. EWS helps to alert / warn downstream population along the river through voice massages and sirens when water is released • Tehri HPP, 260.5 m high Earth and rock fill dam being the highest from the dam. dam in India is located on the confluence of river Bhagirathi and Bhilangana. COLLABORATIVE KNOWLEDGE DESK The Tehri Project is a multipurpose Project providing power benefits to the Northern Region, Irrigation benefits to Uttar Pradesh, and Knowledge management is an important area to capture, preserve and Drinking Water benefits to NCR Delhi and U.P . disseminate in-house knowledge that is generated. Without effective knowledge management platform very often knowledge generated • Being a storage projects Tehri Dam helped in mitigation of floods, in the course of construction and operation is not captured for future which has been demonstrated during 2010, 2011 & 2013 floods. reference. In order to facilitate internal exchange of knowledge, information, key learning, success stories etc. THDCIL has started a • In addition to this, Tehri machines have the provisions to be Collaborative Knowledge Desk on its web portal in which employees operated under synchronous condenser mode, so that reactive can log in and share their experiences which can help in process power (for the improvement of Voltage) could be supplied to the improvement and knowledge up gradation of employees. grid, if required. Quality Circle • In FY 2021-22, Tehri HPP generated 3098.11 MU against its set target of 3000MU. THDCIL has been encouraging its employees and engaging them in quality circle. It is a concept where the employees identify the problems of their respective fields and TEHRI propose the solution by their own and HPP implement them as well. It enhances the skill development, confidence, morale and values of team work among the employees. Annual Quality Circle Meet is organized and selected Quality TANGIBLE WIND Circles represent the Corporation in KOTESHWAR HEP ASSET POWER many national events. PLANTS Tangible Capital THDC India Ltd has an installed capacity of 1587 MW SOLAR comprising of 1424 MW from Hydro (1000 MW Tehri POWER PARKS HPP, 400 MW Koteshwar HEP , Dhukwan SHEP), 113 MW Wind (50 MW Patan 63 MW Dwarka project) and 50 MW from Kasaragod Solar Park. 40 Tehri HPP : Generation (MU) Target vs Achievement 3172 3146 3106 3098 3081 3050 3042 3042 3015 3014 3000 2965 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Target Achievment KOTESHWAR HEP (4*100 MW) Upstream view of Koteshwar HPP 400 MW Koteshwar power house located in the downstream of Tehri reservoir, was declared under commercial operation in April 2012 with the synchronization of 4th unit to the grid. Koteshwar Power Plant also have provision for black start capability and plays an important role in the restoration of grid in the event of grid failure. Generation of Koteshwar HEP Koteshwar HEP : Generation (MU) Target vs Achievement 1224 1225 1230 1224 1225 1220 1221 1203 1186 1185 1191 1160 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Target Achievment 41 DHUKWAN SHEP (3x8 MW) DIVERSIFICATION INTO OTHER FORMS OF ENERGY View of Dhukwan SHEP Power House building Dhukwan Small Hydro - Electric Project is envisaged to be constructed at the toe of existing Dhukwan masonry cum earthen dam across Betwa River in District Jhansi, U.P. The project with an installed capacity of 24 MW (3 x 8 MW) is a part of overall development of the power potential of the Betwa River. Project is under operation and all three units were commissioned in Dec-2019. • There are many firsts in Dhukwan Project: a. THDC’s first Canal based Project b. THDC’s first completely in-house civil design. c. THDC’s first maiden foray into small hydro Project. 120 Mts High Hybrid Wind Tower at 63 MW WPP Distt. Devbhoomi Dwarka, Gujarat d. THDC’s first Project with Kaplan Turbine. e. THDC’s first hydro project outside Uttarakhand. • WIND ENERGY Dhukwan SHEP : Generation With the commercial operation of 25 numbers of wind turbines of Performance 2 MW each on June 29, 2016, contributing 50 MW of renewable power to the national Grid, THDC India Limited has added another 86 72.25 feather to its crown. The wind turbines are installed in the Patan 60 58.25 district of Gujarat and have been commissioned by M/s Gamesa, a leading wind power producer remarkably 2 months ahead of the 10 0 scheduled date of commissioning and are fully operational. 2019-20 2020-21 2021-22 • Another 30 Number of Machines of 2.1 MW each i.e. 63 MW was added to the national GRID on 31st March 2017. This project MoU Target (MUs)-Very Good was commissioned by M/s Suzlon and the turbines are located at Generation (MUs) Devbhoomi Dwarka. Year Patan Wind Power Project Devbhumi Dwarka Wind Power Project Energy Generation (MU) CUF (%) Energy Generation (MU) CUF (%) 2017-18 90.2219 20.60% 149.45 27.08% 2018-19 108.318 24.73% 182.89 33.14% 2019-20 104.073 23.70% 177.83 32.22% 2020-21 75.642 17.27% 136.436 24.72% 2021-22 77.74 17.75% 156.90 28.43% 42 SOLAR ENERGY HYDRO PROJECTS UNDER CONSTRUCTION THDC forayed into solar energy generation by commissioning of 50 MW 1. Tehri Pumped storage plant (4*250 MW) Solar Power Plant in District Kasaragod, Kerala on 31.12.2020. Hon’ble Prime Minister dedicated the project to the nation on 19.02.2021. Year wise Generation of Kasargod SPP are as under: FY Kasaragod Solar Power Project Energy Generation (MU) CUF (%) 2020-21 17.36 15.90% 2021-22 89.11 20.34% Thermal Energy (Khurja Super Thermal Power station (1320 MW) Erection of runner of first unit of Tehri PSP • The 4X250 MW Tehri Pumped storage plant, biggest PSP in India on completion shall add a generating capacity of 1000 MW peaking power to the Northern Region. It is based on the concept of recycling of water discharged between upper reservoir and lower reservoir. The Tehri Dam reservoir shall function as the upper reservoir and Koteshwar reservoir as the lower balancing reservoir. Presently Civil, HM and EM works are in full swing, and 1st Unit of this project is expected to be commissioned by Erection of Boiler-1 & 2, MPH-1 & 2 and CCR Building in progress Apr’ 2023. at 1320 MW KSTPP Vishnugad Pipalkoti HEP (VPHEP) (4*111 MW) 2 X 660 MW Khurja Super Thermal Power Project in District Bulandshahar (U.P) is being implemented by THDCIL. Total annual generation from the Plant would be 9828 MU corresponding to 85% PLF. CCEA had approved the investment approval for Khurja Super Thermal Power Plant (STPP) in District Bulandshahar of Uttar Pradesh and Amelia Coal Mine in District Singraulli, Madhya Pradesh at an estimated cost of ` 11,089.42 crore and ` 1587.16 crore respectively. Hon’ble Prime Minister has laid foundation stone of the Khurja STPP on 09.03.2019. Physical possession of total 1200.843 Acres land had been obtained. Statutory Clearances including Environmental Clearance. All Plant Packages have been awarded and work is progressing in full swing on all fronts. 1st Unit is anticipated to be commissioned by Feb-2024. Amelia Coal Mine In order to meet the fuel requirement of the Khurja STPP; Ministry of Dam excavation in progress at VPHEP Coal, Govt. of India has allocated Amelia Coal Mine in District Singrauli, Madhya Pradesh to THDCIL. CCEA had approved the investment • The VPHEP is a run–of-the-river project. The project is located approval for Amelia Coal Mine at an estimated cost of ` 1587.16 crore in district Chamoli in the state of Uttarakhand. It envisages (Dec-17 PL). Net Geological Reserve in Amelia Coal Mine is 162.05 construction of a 65 M high concrete dam harnessing a gross Million tonne (OC) out of this Extractable Coal Reserve is 139.48 head of 237 M on River Alaknanda. It will generate 1674 MU Million tonne. Coal to be supplied from Amelia Coal Mine as per peak units (90% dependable year). World Bank is funding debt portion requirement of Khurja STPP is 5.6 MTPA. Coal Mining Agreement of the project. On dovetailing the Civil & HM Works and EM (CMA) has been signed with MDO on 30.08.22. All efforts are being Works, the 1st Unit of the project is likely to be commissioned by made to open coal mine in Sep-22 and start of extraction of coal from Oct’ 2024. Nov-22. 43 Human Capital Technical to Non - Technical Manpower Ratio 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 The success of every organization is critically predicated on the competency and 1.06 1.10 1.02 motivation of its workforce. The significance 0.89 0.91 0.99 of ‘human capital’ is even more pronounced in a sector that is inherently high risk, capital intensive and technology-led. Human Capital is basically the skills, knowledge, and experience possessed by an individual or population, viewed in terms TECH / NON TECH of their value or cost to an organization. THDCIL inducts fresh blood 3. Manpower Trend: As stated above, it not only resulted in skewed to its human pool to ensure perpetuity and continuity in competence. ratios but also contributed to the high human resource cost. THDCIL has adopted scientific recruitment strategy to improve its man- THDCIL planned its recruitment strategy in such a way to address megawatt ratio and technical to non-technical manpower ratio. The the excess manpower and ensure effective succession planning Company hires executives in various specialized disciplines viz HR, for the future. A downward trend in manpower can be observed Engineering, Finance, Legal, Mass Communication, Environment etc. below: through All India Test, GATE, UGC-NET, Campus Interviews. ‘Strengthen Manpower Trend capabilities’ has been the focus area all along in the Company’s 2000 pursuits towards structured Human Resource Development. COVID-19 1950 1936 1922 1900 1891 has brought with it a different technology driven world where more can 1850 1835 be generated through less. The new scenario offers efficient discharge 1800 1750 1736 responsibilities with least movement with technology offering additional 1700 1650 1644 advantage of implementing tools to ensure transparency and objectivity 1600 of decision making. 1550 1500 1450 Our Human Capital and their strengthening 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 THDCIL has a human capital of 1644 personnel as on 31.03.2022 comprising of 813 Executives, 67 Supervisors, 764 Workmen. A high Training and Learning quality, motivated workforce is a key enabler for achieving strategic objectives; therefore THDC is making all efforts to take all possible THDC firmly believes investing steps to enable its employees to perform to their fullest of ability. in learning initiatives and for Following graphs shows the output of the strategic manpower planning this it has a well articulated being practiced at THDCIL for last few years. learning development system. THDC’s endeavor is to unleash 1. Man/Megawatt Ratio: There has been persistent fall in the man the potentials of its employees megawatt ratio which depicts the effective engagement of through strategic HRD manpower. interventions by aligning with the business. The Company has been able to link the MAN/MW RATIO Development Plans of employees as per the business requirement, 1.28 1.27 which helps the organization to keep updating the competencies 1.25 of employees to meet current and future requirements. A dedicated 1.19 state of the art HRD centre at Rishikesh caters to the training needs 1.09 1.04 of the company. Various skill trainings, behaviour trainings and paper presentations are conducted at THDCIL by in-house experts as well as external trainers, to improve the potential, capability and skill set of our employees. Talent replenishment and bridging competency gap 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 become crucial aspect for human resource development. Structured training programmes have been developed to impart required skills to the people in identified critical areas. In the post COVID-19 landscape, the Company has seamlessly moved most of its training programs on 2. Technical to Non-Technical Manpower Ratio: THDCIL has been digital platforms, thereby minimizing any disruption to the knowledge consistently working to improve its Technical to Non-Technical upgradation of its workforce. Our Company has in-house expertise in Manpower ratio. During the construction phase of Tehri – HPP a range of related engineering disciplines, viz. hydrology, electrical, (1000 MW) mass recruitment of the locals was done and large civil, geotechnical design and HR. This year 2813 mandays achieved chunk of UPID staff was immersed with the THDCIL, resulted into against the target of 2000 mandays by organizing 49 In-house Training low technical to non-technical manpower ratio. Programs besides external floated nominations to reputed Institution(s) / Agencies(s). 44 MoU with NTPC School of Business Employee Engagement through Social Media and Social Interaction Platforms MoU Signing ceremony of THDCIL and NTPC School of Business THDC India Limited inked a MoU (Memorandum of Understanding) with NTPC School of Business (NSB) on 21st July, 2022 for enhancing 10 KM Marathon Walk organized for the health and fitness the Competencies and Skill sets of THDCIL employees by undertaking of the employees various Capacity Building Initiatives with special focus on broad techno-managerial domains. NSB is an Institute having a qualified multi-disciplinary team of academicians & researchers and imparts To enhance Corporate Branding and ensure engagement of education and carries out research & teaching in the field of energy stakeholders, THDC has a dedicated Corporate Communication management through AICTE approved programmes. NSB will also Department handling day to day Public Relation issues with all leverage the facility of THDCIL’s HRD Centre namely Takshashila professionalism and responsibility. THDCIL acknowledges the power of Sustainable Livelihood and Community Development Centre, Rishikesh. Social Media in reaching out to masses and stakeholders through this The MOU will be valid for the period of 02 years . medium. THDCIL has an active and verified facebook page & twitter handle which are also linked to facebook page and twitter handle of Training of Board Members Ministry of Power & PMO. These platforms are used to disseminate information to our stakeholders and employees also constantly share THDCIL firmly believes the importance their views and feedback on these digital platforms, thus these social of leadership and development media handles provide a two way communication and gateway for of leadership pipeline. To cater knowledge and information sharing. specific training needs of Board Members for building leadership Employee Welfare Activities qualities, Corporate Governance etc. Independent Directors are also nominated for external training THDC also took structured initiatives to provide a desirable work- programmes organised on Corporate Governance, Company Law and life balance to the employees as well as improving the living and new enactments in force. working conditions. Employee Welfare is a considered a sacrosanct Training to Independent Directors by THDCIL responsibility by THDC and during pandemic times THDC has demonstrated its commitment towards Employee Welfare and During the year following capacity building programs were conducted Wellness. The company through various initiatives has always aimed for Independent Director at increasing the Happiness and Wellness quotient of its employees. THDC organized several welfare activities during the year ranging from • Board Governance: Concept & Emerging Trends, Board organizing inter CPSU sports etc and won medals in sports events Governance & Dynamics, Board Effectiveness & Role of organized under the aegis of ICPSU including Badminton where Independent Directors, Effective Decision making through Women Team bagged 2nd prize. THDCIL firmly affirms the importance Board Committees, Understanding Finance for Effective Internal of physical, emotional and social wellness. Therefore, the company Controls, Integrated Thinking and ESG, Related Party Transaction, has established various platforms of social interaction, maintaining its concept, Corporate Governance Framework: National & Global work life balance and to strengthen the internal communication. Perspectives. THDC organizes Cultural Programmes regularly for promoting healthy • Corporate Governance: Concept & Emerging Trends, community living. Various festivals like Diwali, Holi, Durga Puja, New Focusing Companies Act, 2013, Focusing SEBI LODR, Roles & Year, Raising Day etc. are celebrated collectively by organizing cultural Responsibilities of Independent Directors: Gatekeepers of Good activities etc. THDC realizes the holistic importance of Yoga for better Governance, Regulatory Framework & Case Discussion on UPSI living and therefore has deputed trained and qualified Yoga instructors (Unpublished Price Sensitive Information), Governance through for imparting continuous yoga training to employees and their families. Board Committees, Effectiveness of Audit Committee, Aligning Celebration of Yoga Day, arrangement of workshops on several health Corporate Sustainability & ESG, Appreciating Financial Insights related issues, Medical Check –up camps at different units and blood for better board decisions, Laying foundations of Responsible donation, vaccination camps etc. were also an additional feature Business. throughout the year. • Capacity Building of Independent Directors by DPE 45 AZADI KA AMRIT MAHOTSAV as a responsible Corporate Citizen believes in transparent corporate behaviour and therefore is a firm believer of free flow of information amongst its stakeholders. There is a vibrant transparent and diverse HR policy framework in place. SAHYOG Corporate Whistle Ethics Policy Blower Policy Good Gevernance Glimpse of a program organized on the occasion of Azadi Carnival Practices Grievance EXIT THDCIL has celebrated Azadi Ka Amrit Mahotsav as well as 35th Redressal Interview Mechanism Foundation Day in 2022. In this regard, month long celebrations were planned from 12th July 2022 to 15th August 2022 called “Azaadi Carnival”. Under this, various cultural programs, sports activities, Suggesstion Scheme Inhouse talent show and quiz was organized in THDCIL. Moreover, Independence day is celebrated with great enthusiasm across all units/ offices of THDCIL. Following is the list of major activities conducted under Azaadi Carnival. HR PRACTICES FOLLOWED IN THDCIL • Unfurling and inauguration of 100 feet Indian National Flag in Corporate office of THDCIL. • Garnering of employee’s feedback through Suggestion Scheme. • Football matches was organized in Rishikesh in which approx. 50 • Launch of Post Retired Medical Benefit Portal. employees participated. • Inhouse talent program was organized in Rishikesh office in which • Incentive Scheme for Acquiring Higher/ Additional Qualifications. employees, family members and contractual staff showcased various talents like Dancing, singing, playing musical instruments • Scheme of Mentoring of ETs. etc. • Training & Learning Calendar. • A quiz competition was organized on the theme of “Glorious Past and present of THDCIL and India”. • Policy of Exit Interview • Cycling competition for the wards of employees was organized in Rishikesh Office to engage them under the umbrella of Azadi • Digitization of Management systems Carnival. • Sahyog is an initiative to promote sense of mutual help amongst • Theatre performance was organized through Naya Theatre on the employees. story of Chattrapati Shivaji Maharaj called “Sarja Shivaji”. • Award & Reward Scheme to encourage employees to realize full • Vaccination camp was organized to vaccinate the employees, potential. their family members, contractual staff and community at large with the precaution/booster dose. 500+ people were vaccinated • Quality circle to resolve problem with mutual consensus. in Rishikesh. Vaccination camps were also organized across different units/projects of THDCIL. • Succession planning model to train future leader of the organization. • HR Audit to ensure compliance of HR processes with the • 2500 nos. of flags were distributed to the employees and predefined parameters. contractual staff under “Har Ghar Tiranga” campaign. Flags were also separately provided to the administration and the community • Skip Level Meeting to foster a sense of leadership & team work. at large. • New awards for “Swift Decision Making” & “Innovation award” is HR POLICY Framework being incorporated in the existing list of rewards under the THDCIL Award & Reward Scheme in order to motivate employees. THDCIL acknowledges the importance of Policy framework for regulating corporate affairs and ensure responsible behaviour. THDCIL 46 47 DIRECTORS’ REPORT 2021-22 Annexures to the Director’s Report Annexure-I Corporate Governance Report Annexure-II Corporate Social Responsibility Report Annexure-III Management Discussion and Analysis Report Annexure-IV Energy Conservation Measures, Technology Adaptation and Foreign Exchange Earnings and Outgo Annexure-V Business Responsibility Report Annexure-VI Secretarial Audit Report 48 DIRECTORS’ REPORT 2021-22 Dear Members, • Ministry of Power, Government of India vide letter dated 22.12.2021 has identified the State of Uttarakhand to be Your directors are pleased to present the 34th Annual Report on the pursued for Development of Hydro Power Projects by THDCIL. performance of your Company along with audited financial statements, Accordingly, three off-stream Pumped Storage Projects of total Auditors’ Report, Report of Secretarial Auditor and review of financial installed capacity 1600 MW has been identified and Pre-feasibility statements by the Comptroller and Auditor General of India for the Report of the same is in progress in-house by THDCIL. Financial Year ended on 31st March 2022. • THDCIL has expressed its interest to develop Suusamyr- KEY PERFORMANCE HIGHLIGHTS Kokomeren HPP (1305 MW) and further requested Kyrgyz Authorities to provide specific data and details for enabling • THDCIL has generated 4670.81 MU energy during the year THDCIL to prepare plan for site specific studies and preparation of 2021-22 against a target of 4520 MU. cost estimate for preparation of DPR of the project. • The total Capital expenditure (CAPEX) of THDCIL during the • THDCIL has expressed its interest to Ghanaian Government for Financial Year 2021-22 is ` 3232.51 Cr. against a target of ` 2730 development of 50 MW Ground Mounted Solar Power Project in Cr. It is 118% of MoU target of 2021-22. Ghana on 22.04.2022. Response from Ghanaian side is awaited. • THDCIL has successfully raised ` 1200 Cr. Bond Series-V at a • THDCIL is endeavoring to grab implementation of RE Projects annual interest rate of 7.39% from Debt Market during the year through Tariff based Competitive bidding. For this, 14 Nos. Solar 2021-22. Power EPC Contractors has been empanelled with THDCIL and looking for suitable opportunity to participate in the bidding • Ministry of Power, GoI, has entrusted THDCIL, the development of process. Lohit Basin in Arunachal Pradesh also which includes development of Kalai-II HEP (1200 MW) and Demwe (Lower) HEP (1750 MW). • Profit (Total Comprehensive Income) for the year 2021-22 stood at ` 896.92 Cr. • THDCIL has signed MoU with RRECL (Rajasthan Renewable Energy Corporation Limited) on 15.04.2022 for development of 10000 MW Solar Power Parks in Rajasthan through SPV in the form of JV company with RRECL. Signing ceremony of loan agreement of THDCIL and Bank of Baroda 49 FINANCIAL RESULTS The Financial Results of the operations during the year ending 31st March 2022 are summarized as under : (` in Crore) Particulars 2021-22 2020-21 Income (a) Revenue from Continuing Operations 1,921.49 1,796.01 (b) Other Income 305.85 705.92 Deferred Revenue on account of Irrigation Component 16.24 18.80 Less: Depreciation on Irrigation Component (16.24) (18.80) Total Revenue (a+b) 2,227.34 2,501.93 Expenses (a) Employee Benefits Expense 354.11 388.78 (b) Finance Costs 134.11 181.93 (c) Depreciation & Amortisation 302.65 317.33 (d) Generation Administration and Other Expenses 287.06 230.33 (e) Provision for Bad Doubtful Debts, CWIP and Stores & Spares - 0.25 Total Expenses (a+b+c+d+e) 1,077.93 1,118.62 Profit before Regulatory Deferral Account Balances, 1,149.41 1,383.31 Exceptional items and Tax Exceptional items- (Income)/Expenses-Net - 35.65 Profit before Tax and Regulatory Deferral Account Balances 1,149.41 1,347.66 Tax Expenses: (a) Current Tax (Income Tax) 189.34 229.60 (b) Deferred Tax - (Asset)/Liability 35.57 68.48 Profit after Tax before Regulatory Deferral Account Balances 924.50 1,049.58 Net Movement in Regulatory Deferral Account Balances (29.72) 42.83 Income/(Expense)-Net of Tax Profit for the Period from Continuing Operations 894.78 1,092.41 Other Comprehensive Income/(expense) (net of Tax) 2.14 0.31 Total Comprehensive Income 896.92 1,092.72 50 FINANCIAL PERFORMANCE Gross Revenue & Profit Revenue from Operations, Gross Revenue, Total Comprehensive Income and % change in Total Comprehensive Income to Gross Revenue are tabulated below: (` in Crore) Particulars 2021-22 2020-21 Increase/ (Decrease) Revenue from operations 1921.49 1796.01 125.48 Gross Revenue 2227.34 2501.93 (274.59) Total Comprehensive Income 896.92 1092.72 (195.80) Total Comprehensive Income % to 40.27% 43.68% Gross Revenue The above increase in revenue from operations is mainly due to billing amounting to ` 90.19 crore during FY 2021-22, against recovery of impact of wage revision of employees, impact of GST etc vide CERC order dated 23.10.2021. However there is decrease in gross revenue by ` 274.59 crore mainly due to decrease in Late Payment Surcharge. TOTAL COMPREHENSIVE INCOME OF LAST FIVE YEARS Total Comprehensive Income (in crore) 1400.00 1200.00 1000.00 800.00 1185.88 1092.72 600.00 903.43 896.92 778.74 400.00 200.00 0.00 2017-18 2018-19 2019-20 2020-21 2021-22 DIVIDEND The Authorised Share Capital of the Company is ` 4000 crore. The paid up share capital and net worth of the company as on 31.03.2022 is Your Directors have paid Dividend of ` 508.20 crore during the FY ` 3665.88 crore and ` 10306.15 crore respectively. 2021-22, which includes ` 317.36 crore as Interim Dividend for the FY 2021-22 and ` 190.84 crore as Final Dividend for the FY 2020- OPERATIONAL PERFORMANCE 2021-22 21. Thus the total Dividend payout of ` 508.20 crore is ` 138.63 per Equity Share of par value ` 1000/- each, and represents 56.66% of POWER GENERATION Total Comprehensive Income & 13.86% of Paid Up Capital. The Board Total installed capacity of your Company is 1587 MW. During the of Directors of the Company have proposed a final dividend of ` 197.94 year 2021-22, total power generation from Hydro, Wind and Solar crore for the FY 2021-22. Thus the total dividend for the FY 2021-22 power plants was 4670.81 Million Units (MUs) against MoU target of comes to ` 515.30 crore @ ` 140.56 per Equity Share of par value ` 4520 MUs. Further, it has also increased from last year generation of 1000/- each and it is 5% of net worth. 4565.38 MU. CAPITAL STRUCTURE AND NET WORTH Share capital:- 51 During the financial year 2021-22, total power generation from Hydro, Wind and Solar power plants are as under: S. Name of the Plant Generation (MUs) PAF/CUF No. Target Achievement Target Achievement 1. Tehri HPP (1000 MW) 3000 3098.12 80.00% 83.728 % 2. Koteshwar HEP (400 MW) 1160 1190.69 68.00% 68.567 % 3. Dhukwan SHP (24 MW) 60 58.24 - 27.704 % 4. Patan Wind Power Plant (50 MW) 80 77.74 25.30% 17.75% 5. Dwarka Wind Power Plant (63 MW) 150 156.91 27.08% 28.43% 6. Kasargod Solar Power Plant (50 MW) 70 89.11 - - Total 4520 4670.81 THDCIL’s Operational Performance (Generation & PAF) Generation (MU) Contribution Plant wise Annual Generation (MU) Target Achievment 157 58 89 1% 3% 2% 78 2% 1191 4671 26% 4687 4590 4565 4541 4527 4530 4520 4500 4450 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 Tehri Power Complex Cumm PAF (%) 3098 66% 79.82% 81.5% 79.01% 80.9% 79.8% 77.89% 78.07% 79.4% 76.57% 76.2% DSHEP DWPP Kasargod Patan WPP KHEP Tehri HPP 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 FY : 2021-22 Target Achievment CAPEX PERFORMANCE In FY 2021-22, THDC India Ltd has achieved the highest ever CAPEX since its inception in 1988. Total CAPEX in FY 2021-22 has been ` 3232.51 Cr. which is 118% of its set MoU Target of ` 2730 Cr. This is a result of accelerated pace of work on all its under-construction projects due to close monitoring by its visionary leadership, administrative Ministry and hard work of its dedicated employees. 52 Capex Performance 3232.51 3500 3000 2500 1990.14 2000 1480.19 1132.47 1500 698.57 1000 500 0 2017-18 2018-19 2019-20 2020-21 2021-22 Project-wise Financing COMMERCIAL PERFORMANCE TEHRI PSP PROJECT: Your Company believes in rendering best services to the beneficiaries/ DISCOMs. This has been acknowledged by the beneficiaries expressing 1. The Company had made financial tie up with SBI led consortium in their satisfaction with ‘Excellent’ rating in the Annual Feedback Form. the year 2012 for availing ` 1500 Crore long Term Loan for funding The Commercial Performance in terms of Revenue from operations of Tehri PSP . As against above sanctioned amount ` 1227.65 Crore your company is as under : was availed till 31st March 2018. The Company has repaid entire amount of ` 1227.65 Crore by May 2018. Description 2021-22 2020-21 2. The Company has availed a medium term loan of ` 700 Crore Revenue from Operations 1921.49 1796.01 from PNB in the Financial Year 2018-19 for funding of Tehri PSP (` in Cr) Project. The term loan shall be repaid in 20 quarterly installment Revenue Realisation (%) 100* 100 upto March 2024. The net loan outstanding as on 31st March 2022 is ` 279.58 Crores. *Realization of 100% also includes realization from dues of previous year. 3. THDC has issued Bond Series-II, III, IV & V and out of fund raised Hon’ble CERC vide order dated 23.10.2021 has allowed additional through these bonds, following amount has been utilized for Tehri O&M expenses amounting to ` 90.19 Crs on account of impact of PSP project: pay revision and security expenses for the period from 01-01-2016 to 31-03-2019 for Tehri HPP . The impact of the above order has been ` in Crore considered in the Balance Sheet for FY 2021-22. Particulars Amount Utilized Interest Rate (p.a) PROJECT FINANCING Bond Series-II 1420.00 8.75% CORPORATE BONDS Bond Series-III 200.00 7.19% During the financial year 2021-22, company had issued secured Bond Series-IV 500.00 7.45% redeemable non convertible bonds series-V of ` 1200 Crore with coupon Bond Series-V 300.00 7.39% interest rate of 7.39% to meet out the capital expenditure requirement of ongoing projects under construction including recoupment of VPHEP PROJECT expenditure already incurred on Private Placement Basis. Bonds shall be redeemed after 10 years from the date of issue and interest is The Company had made financial tie up of US$ 648 million with the payable on annual basis. Out of bonds series-V of ` 1200 Crore, an World Bank for VPHEP project. However, on request of THDCIL, the amount of ` 300 Crore has been utilized for Tehri PSP project and world Bank has cancelled partial loan proceeds of US$ 100 million ` 900 Crore has been utilized for Khurja Super Thermal Power project. each on 27.06.2019 and 07.04.2021.The loan amount for this project These bonds were rated AA (stable) by M/s Care Ratings Limited and is now US$ 448 million. by M/s India Ratings and Research Private Limited. 53 During the year 2021-22, an amount of US$ 6.55 million has been Khurja STP Project & Amelia Coal Mine. drawn and total drawl upto 31.03.2022 is US$ 157.75 million. Further, an amount of US$ 6.85 million has been repaid and total repayment ` in Crore upto 31.03.2022 is US$ 24.51 million. Thus net loan outstanding as on 31.03.2022 is US$ 133.24 million equivalent to ` 998.09 Crore. Projects Particulars Amount Interest Utilized Rate (p.a) KHURJA STP PROJECT AND AMELIA COAL MINE Khurja STP Project Bond Series-III 600.00 7.19% 1. The Company has plan for financing of debt component i.e. 70% Amelia Coal Mine Bond Series-IV 125.00 7.45% of approved cost amounting to ` 8873.61 Crore of Khurja STP Khurja STP Project Bond Series-V 900.00 7.39% Project & Amelia Coal Mine (i) 50% of debt through Bonds on private placement basis and (ii) balance 50% through Project 3. Long Term Loan: The Company had signed Loan agreement with financing from schedule Banks/Financial Institutions etc. with Bank of Baroda during financial year 2021-22 for financing of interchange option considering market scenario and fund ` 2500 Crore Term Loan to meet out CAPEX requirement of under requirement. commissioned projects. The Fund from BoB shall be utilized for these projects, against above sanctioned amount of ` 800 Crore 2. THDC has issued Bond Series-III, IV & V and out of fund raised was availed till 31st March 2022. through these bonds, following amount has been utilized for Project financing for the FY 2021-22 : Lender Name Loan Opening balance of Amount Drawn Loan Repaid Loan outstanding as Amount loan as on 01.04.2021 during the Year on 31.03.2022 2021-22 IBRD loan from World Bank US $ 648 million** ` 981.52 Crore ` 67.39 Crore* ` 50.83 Crore ` 998.09 Crore Term Loan from PNB ` 700 Crore ` 420 Crore NIL ` 140.42 ` 279.58 Crore Crore Corporate Bonds – Series-I ` 600 Crore ` 600 Crore NIL NIL ` 600 Crore Corporate Bonds – Series-II ` 1500 Crore ` 1500 Crore NIL NIL ` 1500 Crore Corporate Bonds – Series-III ` 800 Crore ` 800 Crore NIL NIL ` 800 Crore Corporate Bonds – Series-IV ` 750 Crore ` 750 Crore NIL NIL ` 750 Crore Corporate Bonds – Series-V ` 1200 Crore NIL ` 1200 Crore NIL ` 1200 Crore Bank of Baroda ` 2500 Crore NIL ` 800 Crore NIL ` 800 Crore *Includes exchange rate variation of `18.47 Cr. ** includes USD 200 million surrendered by THDC due to change in dollar conversion rate. PROGRESS AND STATUS OF PROJECTS UNDER Tehri Pumped Storage Plant (1000 MW) comprising of four reversible CONSTRUCTION pump turbine units of 250 MW each shall be the biggest PSP in India on completion. The operation of Tehri PSP is based on the concept TEHRI PSP (4 X 250 MW): of recycling of water discharged between upper reservoir to lower reservoir. The project on commissioning shall provide 1000 MW peaking power with annual generation of 2208.04 MU considering Multiple Pumping Cycle (11/12 hrs of pumping). For pumping operation of reversible units, the annual off-peak energy requirement will be of the order of 2729.94 MU. In Machine Hall, erection of EM equipment in all 4 Units is in progress. In Unit-5, after lowering of Stator, turbine erection in progress and rotor lowering is planned by 15.10.2022. In Unit-6, stator has been successfully lowered in generator pit on 20.08.22. In Unit-7, casting of Generator foundation is in progress. In Unit-8, Reinforcement of TG foundation concrete is in progress. Erection of GSU transformers, GIS and GIB completed. View of Concrete lning in all limbs from the outer side of 1000 MW Tehri PSP 54 Widening of USSS-3 & 4 completed and work for installation of mono KHURJA SUPER THERMAL POWER PROJECT rails for operation of jump forms to take up lining work is in progress. (1320 MW): After completion of widening of DSSS-3 & 4, Monorail installation is also complete. Concreting of liner erection in transition with TRT & D/s Penstock below both the surge shafts is also near completion. Now, work of orifice concerting and shaft lining is being taken up. Widening of all Vertical Penstocks has been completed. Liner erection in Vertical Penstock-5, 7 & 8 is in progress and Step concreting in bend portion in VP-6 is near completion. Excavation completed in both TRTs (total length: 2406 m) and concrete Invert & Overt lining also completed up to 1871 m and 1821 m respectively. Lining in all four TRT limbs from outlet side is also in progress. Concreting work in outlet structure is also in progress. In HM works, fabrication of all Penstock steel liners is complete. Supply Aerial View of 1320 MW Khurja Super Thermal Power Project of almost 97% EM equipment worth `1056.53 Cr. has reached site. Expenditure incurred on Tehri PSP Project till July-22 is ` 4695.12 Cr. CCEA accorded Investment approval for Khurja STPP at an estimated against RCE-II of ` 4825.60 Cr. (Feb’ 2019 PL) and first unit of the cost of ` 11,089.42 Cr. (Dec-17 PL) on 07.03.19. Hon’ble Prime project is anticipated to be commissioned by April-2023. Minister laid the foundation stone of Khurja STPP on 09.03.2019. Plant shall generate 9264 MU of energy at 85% PLF. VISHNUGAD PIPALKOTI HEP (VPHEP) (4 X 111 MW): All packages namely Steam Generator, Turbine Generator, Switchyard, Vishnugad Pipalkoti HEP with an installed capacity of 444 MW is runoff Cooling Towers and Railway Siding, Coal Handling Plant, CW System the river scheme, located on river Alaknanda, a major tributary of Equipment Package, CW System Civil Works, Water Treatment Plant, river Ganga, in district Chamoli, Uttarakhand having design energy of Ash Dyke package and Misc. Buildings worth ` 7,724 Cr. have been 1657.09 MU (95% dependable year). Project envisages construction of awarded and work is in progress in full swing in all fronts. a 65 m high concrete diversion dam harnessing a gross head of 237 m. In Boiler-1 after CG Jack-up on 11.02.22, erection of pressure parts is River Diversion after construction of U/S Coffer Dam has been in progress. Hydro test for Boiler-1 is scheduled in Dec-22. completed. Dam excavation around 57% completed. Benching and CG Jack-up of Boiler-2 has commenced on 21.08.22. concrete lining of all 3 De-silting Chambers is in advance stage. Heading of HRT by DBM completed in 1214 m length and Benching Erection of Main Power House-1 is near completion. EOT crane-1 has has been completed in 217 m length. been commissioned. Erection of Condenser and Turbine Generator is in progress. TG Deck-2 casting completed on 23.07.22 and erection of At TBM front, TBM has been commissioned. Construction of TBM Entry MPH-2 is in progress. CCR Structure erection work is also in advance Adit through DBM in U/S and D/S of Bypass Adit is in progress and stage. after completion of treatment of cavity formed in D/S, balance length of 25 m towards TBM Cutter Head is likely to be completed by end of Switchyard Control Room Building has been completed and balance Sept’ 2022. After completion of Heading upto Ch. 55m, benching from works are in advance stage of completion. Erection of ESP-1 & FGD-1, 55m to 80m and advancement of TBM including casting of Cradle will Aux. Boiler, casting of Chimney-1 & 2, Cooling Towers, Railway Siding, be taken up from Oct’ 2022. Ash Dyke & Water Treatment Plant package works are also in progress. In Transformer Hall; benching is in progress. Due to the sequence of In CHP , for commissioning of Unit-1 by Feb-24, coal feeding is required excavation of Caverns, first we have to lower the machine hall followed to be ready by Sep-23 for this Coal Path-1 is planned to be given priority. by benching of Transformer hall. In Machine Hall; installation of cable As on date, work for the coal path system readiness is progressing as anchors in side walls has been completed. Stressing/ locking of cable per schedule. anchors and benching is in progress. Excavation up to crane beam level has been completed. In Make-up water package, laying of pipeline, construction of sedimentation tanks, intake chambers, pump house etc. is in progress. In TRT, 35% heading excavation completed and balance is in progress. Work of head regulator & cross regulator by IWRD UP scheduled to At TRT outlet area, 95% slope stabilization work has been completed. start after canal closure in Oct-22. 47.27% supply of EM equipment/ material has been completed. For Power evacuation; Civil works and electrical equipment erection Expenditure incurred on the Project till July-22 is ` 2612.15 Cr. against have been completed in Sub-Station. Whereas in 400 kV Double Ckt RCE of ` 3860.35 Cr. (Feb’2019 PL). transmission line from Khurja Project to Aligarh Sub-Station, all 113 towers erected and 32 kms stringing completed out of total length of First unit of the project is anticipated to be commissioned by Oct’ 2024. 36 kms. Re-routing of NH-91 passing through plant land is in advance stage of diversion. 55 Expenditure incurred on Khurja STPP till July-22 is ` 4805.77 Cr. is completed. Solar Power Park is anticipated to be developed by against approved cost of ` 11,089.42 Cr. (Dec-17 PL) and 1st Unit is Mar-24. anticipated to be commissioned by Feb-2024. For the development of 600 MW Solar Power Park in Lalitpur, AMELIA COAL MINE: acquisition of required 3000 acre land in process. Approx 31% lease agreements signed. DPR for ` 449.23 Cr. submitted to Amelia Coal Mine located in District Singraulli of Madhya Pradesh was SECI and MNRE for approval. Solar Power Park development is allotted to THDCIL in January 2017 to meet fuel requirement of 1320 anticipated by Jun-24. MW Khurja STPP . CCEA accorded Investment approval for Amelia Coal For the development of 800 MW Solar Power Park in Chitrakoot, Mine at an estimated cost of ` 1,587.16 Cr. (Dec-17 PL) on 07.03.19. 4000 acre land has been identified. Signing of Lease agreements Net Geological Reserve in Amelia Coal Mine is 162.05 Million Ton (OC) has commenced and approx. 10% signed. Estimated Park out of this Extractable Coal Reserve is 139.48 Million Ton. development cost is approx. ` 550 Cr. Solar Power Park Coal Mining Agreement (CMA) has been signed with M/s BCML & development expected by Dec-24. Consortium on 30.08.22 and all efforts are being made to open coal II. Rajasthan: mine in Sep-22 and start of extraction of coal from Nov-22. Though as per approved coal production schedule, THDCIL has a target of 1.33 MTPA coal production in the year 2023-24 and will achieve PRC of 5.6 MTPA in the year 2026-27. All necessary clearances FC, EC, Mining Lease, CTE, Mine Opening permission etc. accorded except CTO. • For CTO, matter is being pursued with Member Secretary, MPPCB. • Out of total 1412.37 Ha. Land entire 843.76 Ha. forest land, 178.13 Ha. Lease Hold land, 53.13 Ha. Revenue land (for R&R) and 221 Ha. out of total 337.35 Ha. Private land has been handed over to THDCIL. For possession of remaining 116.35 Ha. Private land matter is being pursued with DM, Singrauli. • Tree felling in 80 Ha. Forest Land out of 139 Ha. Priority-I Forest MoU signing ceremony with RRECL at Corporate Office Rishikesh Land completed. 60 Ha. forest land already cleared for mining. THDCIL is regularly pursuing with DFO, Singrauli to start tree felling on Govt. land and Private land. MoU has been signed between THDCIL and RRECL on 15.04.22 for development of 10,000 MW RE Parks/ Projects in the State • Shifting of PAFs and dismantling of houses has also started. of Rajasthan. Approval for formation of JV with THDCIL has been accorded by board of RRECL on 29.06.2022. Approval for • In R&R Colony, 491 plots to PAFs who have opted for plots out of formation of JV with RRECL has been accorded to THDCIL by NITI 574 PAFs have already been allotted by DM, Singrauli. Ayog on 04.07.2022. MD(RRECL) has issued letter to Principal Secretary (Revenue) with copy to DMs of Bikaner, Jaisalmer & Expenditure incurred on Amelia Coal Mine till Jul-22 is ` 738.70 Jodhpur for providing Land status in their respective districts. A Cr. against approved cost of ` 1587.16 Cr. (Dec-17 PL). note for approval of JV is continuously being expedited currently ULTRA-MEGA RENEWABLE ENERGY POWER PARKS with Energy minister after recommendation of Principal Secretary (Energy). (UMREPPS) I. Uttar Pradesh: PROJECTS UNDER DEVELOPMENT: 1. Bokang Bailing HEP (165 MW): A Joint Venture Company namely TUSCO Limited between THDCIL and UPNEDA was incorporated on 12.09.2020. In-principle DPR preparation is in progress and Draft DPR is expected to be approval for setting up of two UMREPPs of 600MW each in the submitted in CEA by Aug’23. The work of preparation of DPR districts of Lalitpur and Jhansi and 800 MW UMREPP in Distt. (Drilling, drifting etc) at site is in progress. Chitrakoot in UP has also been accorded by MNRE. EIA/EMP studies is underway through WAPCOS and Draft EIA/ Foundation stone of 600 MW Solar Power Park in Jhansi has been EMP Report is pending due to unavailability of approved FRL and laid by Hon’ble PM on 19.11.21. TWL of Bokang Bailing HEP, which is pending from GoUK. Acquisition of required 3000 acre land in process. Approx 81% In continuation to our earlier request letters, ‘Additional Secretary’, Lease agreements signed. IFC, a member of the World Bank GoUK has been again requested vide letter dated 20.06.2022 for Group is engaged to support TUSCO in the development of solar issuance of confirmation letter of FRL and TWL at the earliest. power parks. MNRE has approved the DPR for ` 429.92 Cr on Response from GoUK is still awaited. 20.06.2022. Fencing of Park in 4.8 Km reach out of 55 Km reach 2. Kalai-II (1200 MW) and Demwe-Lower (1750 MW) in Arunachal Pradesh: 56 MoP vide letter dated 22.12.21 has directed THDCIL to pursue on Clearance. The FGD system shall have an independent absorber for 2 Hydroelectric projects (Kalai-II 1200 MW and Demwe-Lower each unit, common limestone milling systems for the two units and 1750 MW) in Lohit Basin with the State of Arunachal Pradesh common gypsum dewatering system for the two units. Clean gas for carrying suitable analysis and preparation of evaluation report. from the absorber shall be taken to the GGH through two stage mist eliminators. Treated and reheated flue gas from the absorber shall be Demwe-Lower HEP (1750 MW): discharged through a 150 m high stack. • Demwe-Lower 1750 MW is in NCLT. THDCIL has e-filed application FUTURE PLAN FOR BUSINESS EXPANSION in NCLT on 12.05.22 and further matter was listed on 29.08.22. I. Hydro Projects in Uttarakhand • During the hearing on 29.08.22, the Bench enquired from THDC counsel whether a resolution plan has been submitted by THDC in • For faster implementation, JV formation with UJVNL is in this connection and for consideration whereof directions/prayers advance stage. are sought in the IA. The matter has been now fixed for 12.09.22 for in person hearing. II. Development of Pumped Storage Plants • Due diligence report has been finalized and subsequently • MoP has allotted 10 PSPs (Probable IC: 12555 MW) to submitted to CEA on 22.08.2022 for further evaluation by high THDCIL to take up the matter with the State authorities, carry level committee. out suitable analysis and prepare evaluation reports. • The comprehensive proposal is yet to be submitted to Resolution III. Development of floating Solar Power Plants Professional (RP) & Committee of Creditors (CoC) based on the board resolution of the board meeting held on 26.07.2022. • THDCIL endeavors to undertake development of floating Solar In this regard a committee has been constituted. Based on the Power Plants on existing reservoirs & canals of irrigation & recommendation of the committee, the comprehensive proposal hydro projects in India. in line with board resolution shall be submitted to CoC. IV. Green Hydrogen Project Kalai-II HEP (1200 MW): • THDCIL is planning to implement ‘Green Hydrogen’ project • Due diligence report has been finalized and subsequently of 1 MW capacity (Electrolyser & Fuel-cell based micro-grid submitted to CEA on 12.08.2022 for further evaluation by high system) at THDCIL Office Complex, Rishikesh (Uttarakhand). level committee. IMPLEMENTATION OF SAFETY MEASURES IN THDCIL • The report is under evaluation by committee. • Dam Safety Measures in THDCIL Developing future technology of Carbon Capture in Khurja The Dam Safety Programme of THDCIL focuses on evaluating and STPP implementing actions to resolve safety concerns of Dams and increases As to venture into the business the overall safety of dams.Dam safety monitoring is being carried out of providing carbon capture through instrumentation and visual inspections. For assessment & services across the country as monitoring the behavior of Tehri and Koteshwar Projects and to verify an EPC contractor through joint the assumptions made during the design phase, an elaborated scheme ventures or technology transfer of instrumentation has been provided in the body of the demand its license, THDCIL is in process of appurtenant structures. Further, inspection galleries have also been implementing a Pilot Project for provided to visually inspect the behavior of body of dam. In addition carbon capture at Khurja STPP to above, seismic instrumentation network for studying the strong (2x660MW) with a newly emerging cost-effective carbon capture motion and micro seismic events of the Tehri region before and after technology. This shall help in removing majority of carbon-based impoundment of reservoir has also been deployed. emission (CO2, Methane etc) from exhaust gases. The periodical (Pre-monsoon, Post-monsoon) visual inspections / In view of above, Consultancy work has been assigned to IIT Roorkee. monitoring of dams and appurtenant structures are being carried out Four parties have submitted EOI proposing their technology for by THDCIL to ensure the safety of structures, as per the guidelines of carbon capture. Technical specifications are under finalization and Central Water Commission (CWC), New Delhi and prevailing practices commissioning of carbon capture Pilot Project shall be ensured with in other organization for carrying out the visual inspection. Central the commissioning schedule of Khurja Thermal plant. Water Commission (CWC), New Delhi, has conducted the annual dam safety inspection of Tehri HPP during the year 2009 & 2013 and for Flue Gas Desulphurization (FGD) System in Khurja STPP KHEP in the year 2013. In addition to above, a comprehensive review of Tehri Project for verifying existing safety dam practices was conducted Flue Gas Desulphurization system and its auxiliaries for two (2) number through a renowned international recognized agency viz. USBR. steam generators of 660 MW nominal rating is being installed based Furthermore, to evaluate the safety of Koteshwar HEP and acquiring on Wet Lime Stone Forced Oxidation process technology to reduce the professional advice on improvements in existing safety practices a emissions of Sulphur Dioxide in flue gas produced by coal being fired comprehensive review of Koteshwar HEP through HPI, Moscow was in boiler to the limits well below that specified in the Environmental also carried-out . 57 • Establishment of Safety Park and Training Center Your company has always been committed to take up the Rehabilitation & Resettlement (R&R) of affected families with humane face. Rehabilitation & Resettlement is being taken up in such a manner that after a reasonable transition period, the affected families improve or at least regain their previous standard of living, earning capacity and production levels. THDCIL believes in building harmonious relationship with Project Affected Families (PAF) through mutual cooperation and regular consultations. Compensation against acquisition of assets and R&R benefits being extended are at par with the applicable norms / guidelines. Besides compensation towards loss of assets, emphasis is also being given on economic upliftment of project affected families by way of various initiatives such as skill development programs, income generation activities etc. Monitoring & Evaluation of RAP was carried out through a third party independent agency on periodic basis to ensure its smooth implementation. Also, to evaluate whether the outcome of the R & R Policy / RAP objectives are being achieved with Inauguration of safety park and training center at Rishikesh respect to those who have physically resettled, re-establishing their income, lost their land, reconstructed common property resources etc. THDC India Limited established a Safety Park and Training Centre under the ambit of Azadi Ka Amrit Mahotsav at the Corporate Office, • Rehabilitation at VPHEP Rishikesh. As for the VPHEP project, the Policy is based on the National The motto for the development of the safety park and training centre is Rehabilitation & Resettlement Policy 2007 (NRRP-2007) assimilating ‘Zero Accident’ at the project sites and unit offices. Through this training the World Bank Guidelines for better features. Compensation against centre, training pertaining to safety measures and safety instruments acquisition of assets and R&R benefits being extended are at par will be provided to all the executives, supervisors, and workmen of with the applicable norms / guidelines along the World Bank’s Social the corporation along with workers related to the construction and Safe Guard Policies, as VPHEP is World Bank financed project. maintenance works at all projects. Around 95% of Compensation amount has been disbursed by Special Land Acquisition Officer (SLAO) and approx. 93% R&R grant has In the safety park, a display hall has been set up displaying all types been disbursed by your company. Various activities such as Dairy of safety equipment and items like safety belts, ear protectors, work Development, Poultry, Tailoring & Stitching, Wool Knitting, Bee at height training, etc in order to create awareness and acquaint the Keeping, Mushroom cultivation benefitting around 500 PAP also been employees with safety gear and equipment. promoted to create livelihood opportunities, scholarship to meritorious/ In the training centre, the training will be provided to the employees by poor/ girls students, construction of additional class rooms & toilets various prestigious institutions like National Safety Council, Nainital, etc. to promote education and sponsored around 300 project affected Safety Circle, Chandigarh, Institution of Engineers Safety Circle, unemployed youths for vocational Trainings like hotel management, Calcutta, etc. Excavator operator, Electrician, Fitter, Refrigerating & Air Conditioning etc. through GMR Foundation, Dr. Reddy Foundation, and Industrial • Safety Audit Training Institutes in nearby areas. As part of the employment, around External and internal safety audits of all projects are being conducted 20 Project Affected Persons have so far provided job in Company’s roll. to identify the area for improvement and deviation from standards i.e. • Rehabilitation at Amelia Coal Block applicable statutory Acts, CEA (Safety Requirements for Construction, Operation and Maintenance of Electrical Plants and Electric Lines) To meet the fuel requirement of Super Thermal Power Project at Regulations, 2011, IS-14489:1998 and THDCIL SHE (safety Health & Khurja, UP , your company has been developing Amelia coal block in Environment) manual and other applicable Act as per project safety Distt.- Singaruli, Madhya Pradesh, allotted to THDCIL by Govt. of India, requirements. Ministry of Coal. R&R policy for resettlement and rehabilitation of PAF’s of Amelia Coal Mine has already been approved by the Commissioner, REHABILITATION & RESETTLEMENT Rewa on 24.12.2019. Allotment of plots in R&R colony is near completion. Disbursement of compensation and shifting of PAFs is in progress. ENGINEERING CONSULTANCY A dedicated consultancy wing has been set up within Design & Engg. Deptt. of THDCIL, capable of providing consultancy services to its esteemed clients in an integrated manner from concept to commissioning of hydro electric projects & other associated tasks to National and International repute. THDC India Limited has been extending its professional expertise to Central/ State Govt. & other government statutory bodies and providing complete engineering solutions in the field of water resource engineering & high end engineering jobs. In Panoramic View of New Tehri Town 58 reference, several MoU’s in consultancy services across the associate 2. Condition Monitoring of EM equipments of Tehri HPP & KHEP for engineering field has been signed by Design Deptt. of THDCIL with FY 2022-23 other govt. bodies/ agencies. Further, during year 2021-22, following two R&D projects have been In consultancy projects, more than 120 DPRs on landslide mitigation completed: measures have been prepared from concept to commissioning of projects for the State Govt. Deptt. of Uttarakhand, Shrine Board of 1. Assessment of Sediment Yield from the Catchment Area of Tehri Shri Mata Vaishno Deviji, J&K and Ministry of Road Transport & Reservoir. Highway (MoRTH) in India. The following consultancy assignments are in progress; 2. Consultancy for Issuing Inflow Forecasts for Tehri Dam Reservoir Using Operational Inflow Forecasting System. 1. Design and Engineering Services for stabilization of vulnerable zones between Katra and Shri Mata Vaishno Deviji Shrine”. Assessment of Sediment Yield from the Catchment Area of Tehri Reservoir: Considering the limitations of the sediment data availability 2. Engineering Consultancy for the Stabilization of Chronic Slide and inconsistency among the hydrographic surveys, THDCIL Zones on 20 various Road locations in Uttarakhand. recommended to model different scenarios. Five scenarios were considered, and their results were presented in the 25th meeting of 3. Engineering Consultancy for the Stabilization of Chronic Slip zone AAC held on 12.11.2021. The AAC, during the 25th meeting, accepted on slope adjoining Rajbhawan, Nainital for immediate measures the findings and appreciated the approach adopted for the study. The (Phase-I), and comprehensive scheme (Phase-II). recommendations were given as following: 4. Detailed Project Report for protection/ treatment and Slope 1. For exceptional year of 2014, which cannot be modelled with the Stabilization works Near Holy Cave for Shri Amarnathji Shrine present set of data, a new study may be undertaken in future. Board, Srinagar, J&K. 2. To resolve all doubts regarding capacity survey of 2019, it is 5. MoU with PWD, Uttarakhand for renovation work of the damaged highly recommended to conduct hydrographic survey of full tunnel lining at Rudraprayag-Gaurikund motor marg, Uttarakhand: reservoir area at close intervals in near future. 6. Consultancy Assignment from Ministry of Road Transport and AAC also accepted the recommendation for further study on Highways (MoRTH), R.O., Arunachal Pradesh: Hydrographic survey of Tehri reservoir at the earliest and also 7. Consultancy Assignment from Ministry of Road Transport and suggested to plan another study for modeling extraordinary events like Highways (MoRTH), R.O., Dehradun: that of the year 2013. 8. MoU with PWD, Uttarakhand for Consultancy Assignment for Consultancy for Issuing Inflow Forecasts for Tehri Dam Reservoir development of 12 nos. Multilevel/ Underground parking in Using Operational Inflow Forecasting System Uttarakhand The catchment area of Tehri Dam is 7511 sq. km., out of which 9. Consultancy Assignment from PWD, Nainital on restoration of approximately 2323 sq. km. is snow bound. The inflow forecast helps sinking stretch of Lower Mall Road, Nainital Lake in safety of Dam by giving advance information regarding inflow into reservoir from catchment and increases flood warning time to ensure RESEARCH AND DEVELOPMENT safety of downstream population. An inflow forecasting system was established by THDCIL under guidance of Department of Hydrology, THDCIL had established its Research and Development Centre at IIT, Roorkee, which is operational since June-2016. The real time inflow Rishikesh in year 2011. Presently, various R&D projects are under forecasting system consists of 11 meteorological stations and 4 G&D progress by R&D Department in association with reputed institutions, stations viz; Earth quake monitoring stations established around Tehri Region, Annual Condition Monitoring of EM equipment of Tehri & KHEP , Expenditure on R&D Activities during 2021-22 Comprehensive solutions for slope stability of road between Zero bridge to Koteshwar, Study of structural integrity of submerged Intake The R&D budget of ` 2.89 Cr. for the year 2021-22 was approved by structures with variation in Tehri reservoir water head with a particular the Board in its 220th Board Meeting held on 23.10.2021. reference to construction and lift joints and Analysis & Mitigation of Oscillations in Hydro Generator fed Transmission Lines. As per MOU signed between THDCIL and NTPC Ltd the Target Expenditure on R&D /innovations initiatives as percentage of PBT was In addition to above ongoing projects, during year 2021-22, following 2% for F.Y 21-22, which could not be achieved for F.Y 21-22 two new R&D projects have been identified and being taken up: 1. Development of program for Real time Simulation of Integrated Operation of Tehri Hydropower Complex comprising of Tehri HPP, Koteshwar HEP and variable speed Tehri Pumped Storage Plant. 59 Details of R&D expenditure in Financial Year 2021-22 Amount in Lakh ` Sl. Name of R&D Project Approved budget Expenditure No. 1 Assessment of Sediment Yield from the Catchment Area of Tehri Reservoir. 1.50 0.00 2 Operation and maintenance of a 18-station seismological network deployed in 200.60 182.67 the region around Tehri dam and 13-station strong motion network installed in Tehri dam & Koteshwar dam. 3 Comprehensive solution for slope stability of road between Zero bridge to 1.50 0.00 Koteshwar. 4 Consultancy for Issuing Inflow Forecasts for Tehri Dam Reservoir Using 11.63 48.28 Operational Inflow Forecasting System 5 Condition Monitoring of EM equipments of Tehri HPP & KHEP for FY 2020-21) 47.20 22.88 6 Analysis and Mitigation of Oscillations in Hydro Generator fed Transmission 7.50 7.50 Lines. 7 Study of structural integrity of submerged Intake structures with variation in 15.00 14.94 Tehri reservoir water head with a particular reference to construction and lift joints. 8 Other Miscellaneous works (Payment of consultancy charges to AAC members 5.00 3.59 and other special invitees) 289.93 279.86 Note: Total R&D expenditure in terms of percentage of approved R&D b. Consultancy for Issuing Inflow Forecasts For Tehri Dam budget for FY: 2021-22 is 96.53%. Expenditure on R&D works/ Reservoir Using Operational Inflow Forecasting System: activities, as per R&D policy of corporation, could not be incurred more than 0.243% of PBT during FY: 2021-22. QUALITY ASSURANCE & INSPECTION Sustainable Development THDC India Limited has an established centralized Corporate Quality Assurance (CQA) Department for achieving a better performance of 1. Economic sustainability: Efforts made for achieving self plant equipment. In this regard, a Model Quality Management System dependency or to improve the quality of the product. In this is in force to carry out quality assurance and inspection activities of direction, THDCIL is executing following R&D projects for Hydro Power Projects under implementation, for ensuring the quality Economic Sustainability: of each and every equipment in regard to all the generating units and its auxiliaries including plant auxiliaries being supplied at site of the a. Comprehensive Solutions for Slope Stability of Road ongoing Projects (Tehri-PSP , VPHEP) in accordance with the Model between Zero Bridge to Koteshwar: Quality Management System. b. Condition monitoring of Electro-Mechanical equipment in The quality management system has its role at every stage of equipment Tehri and Koteshwar HEP: i.e. Preparation of Quality Assurance & Inspection (QA&I) requirements for tender document, Bid evaluation for QA&I aspect, Finalization of Social sustainability: Following research activities to Quality Co-ordination Procedure, Sub-vendor approvals, Approval of ensure safety of Structures and general welfare of the entire Quality Assurance Plans (QAP), Conducting stage and final Inspections, population of the region are being carried out: recommendation of Material Dispatch Clearance Certificate (MDCC). a. Operation and maintenance of a 18-station seismological Further, Corporate Quality Assurance Department ensures the quality network deployed in the region around Tehri dam and 13-station of the work being carried out during the installation of equipment at strong motion network installed in Tehri dam & Koteshwar dam. site by regular/periodical inspections at different stages of erection and 60 commissioning of the plants. Till 31.03.2022, Project wise details for Controlled Blasting techniques are being practiced and the same is vendor approval, QAPs, inspections, and MDDCs recommendations being monitored by construction contractor through CIMFR, Roorkee are mentioned below: Herbal Garden is being developed in the VPHEP colony over an area of 1800 sq.m. approx., under the consultancy of HRDI, Mandal Project Sub- Quality Pre-dispatch MDCCs Gopeshwar. Various medicinal plants have been planted. vendors Plans inspections Tehri-PSP 674 129 317 414 The development of the Green Belt at VPHEP is being undertaken under the supervision of noted Environmentalist Sh. Jagat Singh Chaudhary VPHEP 1631 60 255 145 alias “Junglee”. ISO CERTIFICATIONS 2. Khurja STPP: THDCIL has obtained certification of ISO 9001:2015 for Quality Your company is implementing the 1320 MW Khurja Super Thermal Management System, ISO 14001:2015 for Environment Management Power Plant, wherein various Environment Management and Protection System and ISO 45001:2018 for Occupational Health & Safety activities envisaged under the EIA –EMP report are to be executed pari- Management System (OH&S) in Corporate Office, Tehri HPP , Tehri passu with the construction activity. PSP, Koteshwar HEP , Vishnugad Pipalkoti HEP and Dhukwan Small By using some advance tools and techniques at Khurja STPP , your Hydro Electric Plant. The validity of ISO 9001:2015, ISO 14001:2015 Company has planned to protect the direct emission of hazardous and ISO 45001:2018 certificates of Corporate Office, Tehri HPP, Tehri gases and particles into the atmosphere. Some of these techniques PSP, Koteshwar HEP & Vishnugad Pipalkoti HEP are upto March are listed below; 2024. Validity of ISO 9001:2015 certificate of Dhukwan Small HEP is up to March 2023. Validity of ISO 14001:2015 and ISO 45001:2018 1. Electrostatic precipitators (ESP) with 99.89% efficiency would certificate of Dhukwan Small HEP is up to September 2023. be installed to control the emission of fly ash particles. The precipitators would be designed to limit the particulate matter THDCIL has acquired the certification of ISMS (Information Security concentrations below 30 mg/Nm3. Management System) ISO 27001:2013 in October 2015 through STQC (Standardization, Testing and Quality Certification), New Delhi. 2. The boilers will be provided with Low Nox Burners and the flue gases shall be passed through Selective Catalytic NOx Reduction ENVIRONMENT MANAGEMENT and Flue gas desulphurization systems to limit NOx and SO2 concentrations below100 mg/Nm3. Your Company has always adopted the appropriate Environment safeguard measures to avoid, minimize and mitigate the negative 3. An ash management scheme shall be implemented consisting of a impacts on the Environment due to its activities at various offices and dry collection of fly ash, supply of ash to entrepreneurs as already project fronts. being identified for utilization and promoting ash utilization to the maximum extent, and safe disposal of unused ash. The plant shall Your company is committed to conserve the natural resources, have two different systems for ash disposal –Conventional wet to protect and conserve the flora and fauna and to implement best slurry disposal with ash water re-circulation for bottom ash and practices at all of its workplaces. Your company aims to proper High Concentration Slurry Disposal (HCSD) for fly ash. implementation of the Environment Management Plan for each of its projects. Various measures taken in this regard are as follows: In order to sensitize people, World Environment Day (WED) is celebrated on June, 5th of every year at the corporate office as well as at project 1. VPHEP: locations. A five-member Environment and Social Panel of internationally recognized experts have been engaged for monitoring and appraisal of IMPLEMENTATION OF RISK MANAGEMENT Environment and Social issues involved in the development of 444 MW The Management of risk in an integral part of good management Vishnugad Pipalkoti Hydro Electric Project (VPHEP). Practice. These in a direct relationship between risk and opportunity, WAPCOS Ltd., Gurgaon, and the Indian Council of Forestry Research in all business activities and, as such, an agency needs to be able to and Education (ICFRE), Dehradun have been engaged for independent identity, measure and manage its risk and opportunity in all business Third-party monitoring of the implementation of the Environment activity, in order to be able to capitalize on these opportunities and Management Plan (EMP) and Catchment Area Treatment (CAT) Plan achieve its goals and objectives. of VPHEP respectively. Since, majority of Hydro Power Projects of THDC India Ltd are located Directorate of Coldwater Fisheries Research (DCFR), Bhimtal has in the Himalayan region, the landform of Hydro Power Projects areas been engaged for the development and implementation of the Fishery represents mega folds, faults, thrusted structures etc. which are Management Plan at VPEHP . related to the Himalayan tectonic activities. Various risks arouse during construction of different Projects due to these geological features. The For Wildlife Protection at VPHEP , Camera Traps have been provided Company has implemented ‘Risk Management Manual’ in June 2012, to the Forest Department for installation and monitoring at appropriate duly approved by the Board. The Manual intends to maintain a uniform forest locations nearby the project sites. 02 Watch Towers have been & structured Risk Management System in the Organization at various installed at identified locations at Powerhouse and Tunnel Boring Power Projects during different stages of execution. Machine site nearby the boundary of Kedarnath Wildlife Sanctuary. 61 Risk Management Committees are in place for ongoing construction operations, explanations, Delays, difficulties, utility damages, Projects. Each committee comprises of members from Project Site Local issues, Dharana, traffic disruptions, other unusual (as Risk Officer), Project Finance and Corporate Design (Civil & HM). conditions etc.) A Corporate Risk Management Officer has also been nominated to monitor the Risk Management Plans being implemented in well- 6. Safety issue organized way at ongoing as well as commissioned Projects. Paperless Office : In order to move gradually towards paperless office Detailed information on Implementation of Risk Management is for improving the efficiency, consistency and effectiveness in the enclosed separately in the Corporate Governance Report (Annexure-I). responses from individual / section / department in handling the letters, Major elements of risk are given in the Management Discussion and notes and files, THDCIL has successfully implemented e-OFFICE Analysis Report enclosed as Annexure-III of this Report. (DEVELOPED BY NIC). It has reduced the turnaround time / processing delays and shall establish transparency and accountability. Now the INFORMATION TECHNOLOGY AND COMMUNICATION proposals, notes etc are being process through E-office. In THDCIL Information Technology is used as strategic tool to Other IT related Achievements during the year improve our overall productivity and efficiency. We have successfully • Development of application & Implementation of online recruitment implemented various software solutions to help in optimum utilization of Executive Trainees (HR/Finance). of generating assets, accelerated development of construction projects thereby improving quality, productivity and profitability of • Development of application software for online submittal of the organization. THDCIL has latest Information Technology and “Quarterly Vigilance clearance reports of executives”. Communication infrastructure. All key business functions viz. Finance, HR, Procurement & Contracts, Inventory, Project Management, Power • To secure the IT system and software applications, regular audit Plant Operation and Maintenance, Energy Sales and Accounting, Quality of software application and IT infrastructure are being audited by Assurance etc. have computerized Systems. These applications are CERT-In empanelled Security Auditors and also cyber security web based and are being accessed over internet. awareness workshops are conducted regularly to sensitize employees about cyber security. A session on Cyber security has All locations have dual high speed internet lease lines for uninterrupted been organized for new graduate engineer trainee to make them access to internet and software applications. Further for the aware of the various aspect of Cyber Security. transparency of payments, we have also implemented web based Bill Tracking Software to track the status of bills submitted by vendors/ • The Company has well established multi-point Video Conferencing contractors. Contractors / vendors also know the status of their bills, system for conducting VC among the different project offices and shortcomings are also known to them. Grievance Tracking System Corporate office. is for the public to register their complaint and get the status of their • The new software module in HRMS for Talent management and grievances. Exit procedure has been developed and implemented. Information Technology initiatives in F.Y. 2021-22 • In order to get the advisories on vulnerabilities / malicious traffic Financial Management System: The FMS application Software was on the internet facing devices, THDCIL onboarded on Cyber made Indian Accounting Standard (Ind-AS) compliant. Budget system Swachhata Kendra to get the regular advisories. has been developed for Capital and revenue budget. The works contract module has been developed and made operational. This deals with the AWARDS AND RECOGNITIONS contract creation, BOQ, online measurement book and bills. Now the Your Company has been recognized and appreciated by the Government site engineers will be able to enter the measurement in near realtime. of India and other prestigious organizations and institutions in the form of various awards/accolades in various categories from time to time. Retired Employee Portal: A portal for retired employee has been developed where the retired employee will be able to see the latest It is a matter of great pride for all of us that alike previous years, your office orders related to them, PF/ Pension data. They can also submit company has been conferred with various awards during FY 2021-22 their medical bills and life certificate online and get their status also. under different domains: Project e-diary system : A web based Application software known as Project e-diary system have been developed and operational at under construction site e.g. VPHEP. In this application data against six category is being entered which is accessible over internet. These six categories are 1. Description of major activities (works executed during the day QTY, Unit and remarks) 2. Shortfall of Resources (resource details) 3. Significant instructions (major decisions for work execution (Target Dates) 4. Quality related issues (Issues and measures) Sh. R. K. Vishnoi Chairman & Managing Director, THDC India Limited receiving the award of CEO with HR Orientation by World HRD Congress 5. Daily Hindrances (Suspensions, resumptions of contractor 62 1. Chairman and Managing Director of your company, Sh. Rajeev therefore it has always recognized its employees as its core strength and Vishnoi has been conferred CEO with HR Orientation Award considers human resource as vital resource to manage and get results by World HRD Congress in March, 2022. The award is an therefore it enables its employees to deliver on business requirements acknowledgement of exemplary HR initiatives taken by CMD, while meeting their career aspirations. Our people practices are aimed THDCIL in the field of Human Resource Management. at developing a culture of care, commitment, engagement and harmony across the workforce. Your company has a human capital of 1644 as 2. Tehri Dam project (1000 MW) of your company was conferred on 31.03.2022 comprising of 813 Executives, 67 Supervisors, 764 with ‘Dam Safety Project of the Year’ award during XV World Workmen. A high quality, motivated workforce is a key enabler for Aqua Congress & International Dam Safety Conclave, 2021. achieving strategic objectives; therefore your company is making all efforts to take all possible steps to enable its employees to perform to their fullest of ability. TRAINING AND DEVELOPMENT Your company firmly believes in investing in learning initiatives and for this it has a well articulated learning development system. Your Company’s endeavor is to unleash the potentials of its employees through strategic HRD interventions by aligning with the business. The Company has been able to link the Development Plans of employees as per the business requirement, which helps the organization to keep updating the competencies of employees to meet current and future requirements. Even during pandemic times, the learning and Award ceremony during XV world Aqua Congress & development initiatives of your company continued uninterrupted International dam safety conclave 2021 and your company has organized 49 dedicated training on Technical, Managerial & Behavioral domains besides, external floated nominations 3. Your company was conferred with Public Relations Society of for 2813 Mandays achieved during the period against the target of India (PRSI) National Awards, 2021 under the category ‘Social 2000 mandays by organizing 49 In-house Training Programs besides Media for PR and Branding’ (Second Position). The award external floated nominations to reputed Institution(s) / Agencies(s). was conferred at 43rd All India Public Relations Conference held virtually at digital platform organized by PRSI. Training Programs have been organized on wide gamut of topic in the various areas viz. Leadership & Management Development, Enhancing Cross functional Competencies in addition to Technical & Domain specific and Skill up-gradation Programs. Several initiatives were taken for Women Employees for achieving Work life Balance as well as Leadership Development by way of organizing various training programs for Overall growth of Women Professionals. The training was imparted to freshly recruited trainees and their final assessment was done. Your Company practices equal opportunity for Women employees with the best opportunities and equal representation in T&D activities. International Women’s Day was also celebrated across the locations of the Company and initiatives were taken for empowerment of Women Employees. Your company is investing in the Skill Development of its employees as well as various vocational training initiatives under CSR for the youths THDCIL being awarded Consolation prize under from the nearby areas. NTPC Rajbhasha Shield Scheme EMPLOYEE RELATIONS AND WELFARE 4. Your company was conferred 1st Prize under Narakas Rajbhasha Vaijyanti for the year 2020-21. The award was announced in the 33rd Half Yearly Meeting of Nagar Rajbhasha Karyanavan Smiti, Haridwar held online on 21st Jan’2022. HUMAN RESOURCE MANAGEMENT People are the primary resource and this resource has helped your company to develop resilience amid challenges in the pandemic times. In meeting the challenges posed by the pandemic, new learning’s have been made and greater self-reliance has been developed. Human Resource contributes immensely in achieving vital organizational targets and creating and improving brand image of the company. Your Company firmly believes that employees are greatest strength COVID-19 vaccination camp organized at Corporate Office, Rishikesh and employee’s growth and organizational growth are interdependent, 63 Employee Relation is essential for industrial harmony and is important easy accessibility by way of erecting ramps in most buildings of for sustainable growth of the company. It drives sustained stellar the Corporation. Your company has been making all efforts towards performance and helps in ensuring mutual efforts leading to overall creation of barrier free environment for differently abled by following the organizational prosperity. The Employee Relation in your company is guidelines laid down under Sugamya Bharat Abhiyan. Your company founded on justice, equity, mutual respect and your company engages has been nominating employees belonging to Physically Handicapped its employees in dialogue process through participative forums and category to attend special training programmes. Your company has system of holding periodical meetings with unions/association to nominated Liaison Officers to identify the issues pertaining to differently discuss employee issues. This has helped in ensuring overall harmony abled employees and implementation of various welfare activities for and cordial employee relations. them. Your company has Equal Opportunity Policy and is implemented in letter and spirit. Employee relations were cordial and harmonious at all THDCIL projects/ stations/units during the year. There was continuous dialogue and IMPLEMENTATION OF OFFICIAL LANGUAGE interaction between the management and the union and association of workmen and executives. Structured meetings were organized during Your Company has made sustained efforts to enhance the progressive the year wherein issues relating to performance and productivity were use of Hindi in day to day official working. Your company believes that extensively discussed. Representatives of workmen were allowed Hindi language has the power to create bonding and national spirit to participate in joint management council where equal number of therefore, your company made vigorous efforts for the propagation employees and Management representatives participated in objective and successful implementation of the official Language Policy of the and constructive discussion. Government of India. Several Hindi workshops and competitions were conducted at projects and corporate office during the year to encourage Employee Welfare is a considered a sacrosanct responsibility by your the employees to maximize the use of Hindi in official work. All office company and during pandemic times your company has demonstrated orders, formats and circulars were issued in Hindi. The Contents its commitment towards Employee Welfare and Wellness. The are also being displayed in the official website bilingually. Important company through various initiatives has always aimed at increasing advertisements and house journals were released in bilingual form- in the Happiness and Wellness quotient of its employees. Your company Hindi and in English. organized several welfare activities during the year ranging from organizing inter CPSU sports etc. and won medals in sports events During the year 28 numbers of workshops were organized by Rajbhasa organized under the aegis of ICPSU including Badminton where section where 526 numbers of employees were imparted training. Women Team bagged 2nd prize. The activities of clubs were hit due to To provide bi-lingual working facility in Computers/Laptops, Hindi Covid-19 however, several initiatives were undertaken by these clubs Software/Fonts have been installed. To encourage the employees to aware the employees about Covid-19 and fight the pandemic by to perform their work in Hindi, a Hindi typing/Stenography Incentive distribution of masks, sanitizers etc. Your company organizes Cultural Scheme has also been introduced. Quarterly meetings of Official Programmes regularly for promoting healthy community living. Various Language Implementation Committee were organized in subordinate festivals like Diwali, Holi, Durga Puja, New Year, Raising Day etc. are offices/ units. Attractive incentive schemes for employees working in celebrated collectively by organizing cultural activities etc. Hindi have been implemented as per the government guidelines. Your company realizes the holistic importance of Yoga for better living Also, various awards and reward schemes have been introduced to and therefore has deputed trained and qualified Yoga instructors for encourage employees to actively participate in promotion of Hindi, by imparting continuous yoga training to employees and their families. contributing articles/write-ups for in-house magazines, participating in Celebration of Yoga Day, arrangement of workshops on several health events organized throughout the year including Hindi Pakhwada. related issues, Medical Check –up camps at different units and blood donation, vaccination camps etc. were also an additional feature Your Company has established one of the best Hindi libraries throughout the year. at Corporate Centre along with other Hindi Libraries at various establishments of the Company, where popular/literary Magazines and INITIATIVES FOR SC/ST AND PHYSICALLY CHALLENGED News Papers have been made available for the employees. Hindi house journal “PAHAL” is also being published and issues were uploaded on PERSONS THDC Website in Media Tab and in E-Patrika Pustakalya on the website Your company endeavors to comply with the guidelines issued by of Rajbhasha Vibhag. Govt. of India from time to time on implementation of reservation Your company is also discharging the responsibility of chairmanship of policy on Direct Recruitment, promotion etc. for SC/ST and Physically TOLIC (Town Official Language Implementation Committee) Haridwar challenged candidates. Your company implemented Govt. guidelines & Tehri. Various activities/ programs of Town Official Language on welfare of SC/ST personnel and redressal of their grievances in letter Implementation Committee were organized at regular intervals during and spirits. Your company has a dedicated grievance cell for SC/ST/ the year such as half yearly meetings. All activities and programs have OBC and minorities. Continuous Efforts are made to fill up backlog been uploaded on the website of Town Official Language Implementation vacancies through the process of internal promotion & recruitment Committee, prepared by the Department of Official Language. through Special recruitment drive. Your Company recruited 10 Nos. of candidates in Group- “A” out of which 07 belonged to General category, Your company was conferred Consolation Prize Under NTPC Rajbhasha 01 from OBC (NCL), 01 from OBC & 01 from SC category. Shield Scheme for the year 2020-21. The Corporate Office of THDC India Ltd. was also conferred 1st Prize under Rajbhasha Vajyanti Scheme In compliance of implementation of United Nations Convention on of TOLIC for the year 2020-21 which was announced in January the Rights of Persons with Disabilities, the Corporation has provided 2022. 64 RIGHT TO INFORMATION ACT, 2005 to disseminate relevant information for awareness of internal and external stakeholders during pandemic. THDCIL as a responsible Your company has taken concrete actions to provide information to Corporate Citizen has channelized its Social Media Platforms viz. the citizens of the country in accordance with the Right to Information facebook page, twitter handle, You Tube Channel and Instagram Profile Act, 2005. for prudent COVID Communication Response. THDCIL’s official website contains information as required to be Your Company firmly believes in constructive communication and published under Section 4(1)(b) of the Act. Particulars of Appellate follows innovative and diversified means for engagement of various Authority, CPIO, PIOs of the Corporation, and all related formats for stakeholders. The key areas of productive interventions of during F.Y. seeking information, submission of appeal to the first Appellate 2021-22 are: Authority are available on the THDCIL website. • Regularly promoting and sharing the initiatives taken by All the applications received from the information seekers are dealt with Government of India on its Social Media Platforms along with as per provisions contained in the RTI Act, 2005 and prompt action is the steps taken by THDCIL. It also monitors important updates/ taken on them. During the year 2021-22, total 237 applications were announcements of PMO, My.Gov, Ministry of Health and PIB etc. received from the citizens across the country seeking information of together with showcasing Infographics, Short Videos/Animation various nature and information was made available to them on time. to spread awareness. During the year 24 appeals have been received by First Appellate • Forming What’s app/facebook groups for better communication to Authority, all the appeals have been disposed off by the Appellate ensure necessary help for COVID infected/suspects in case of any Authority. Besides, during the year 21-22, 03 appeals were filed before emergency. Central Information Commission (CIC), New Delhi and the same were disposed off by the Commission. Your corporation is a true practitioner of innovative & diversified means of engagement for stakeholders outreach. Your company has developed WOMEN EMPLOYEE WELFARE Social Media Centre (SMC)-One Stop Destination for carrying out prudent Social Media Interventions and to ensure its implementation Your Company formed “Internal Complaints Committees” as per Sexual and centralized effective monitoring at THDCIL Corporate office Harassment of Women at Workplace (Prevention, Prohibition and Rishikesh. Corporation has developed active and diverse Social Redressal) Act, 2013 reflecting its commitment to provide a safe and Media Assets viz. facebook page, twitter handle, You Tube Channel, caring environment to female employees. One complaint was received Instagram Business Profile, Bulk Message and Voice Call Service. by ICC in FY 21-22 and has been disposed off. Your company has Your company acknowledges the power of disseminating information also constituted WIPS (Women in Public Sector) committee and is for greater transparency, accountability and therefore it used every a life time member of WIPS. Your company nominates members of possible platform to share information and ensure engagement of WIPS to attend National conferences, webinars etc. Several training stakeholders. Your company acknowledges the power of information programmes, health and wellness workshops were organized for and therefore uses several methods including audio/video contents women employees. to e-magazines to reach out all stakeholders and keep them informed about CSR, Welfare initiatives, corporate achievements etc. PR INITIATIVES AND ACTIVITIES AZADI KA AMRIT MAHOTSAV Your company is partnering Government of India in Azadi ka Amrit Mahotsava initiative and has conducted 23 major activities assigned by MOP to date which have also been uploaded on the Ministry of Culture Portal like Fit India Freedom Run for school students, Webinars, Workshops, Marathons, Plantation drives, Street plays, Press visits, press conferences, and many more. VIGILANCE ACTIVITIES Vigilance in THDCIL is a key management tool that takes organization forward in higher growth trajectory. Its function should not be viewed as impediment in achieving the objective of the company rather it should be viewed as facilitator in accomplishing its objective. Its function emphasize more on sensitizing employees of the organization to bring awareness among the employees towards transparency in day to day activity keeping in mind the Rules & Regulations. THDCIL is committed THDCIL being awarded second prize for the social media for for fostering the ethical and corruption free business environment and PR and Branding values its relationship with all its stakeholders and deals with them in fair and transparent manner. The global pandemic has posed challenges to different fronts The functions performed by Vigilance department are wide in and in fighting the war against Covid-19 the potency of effective scope and include collecting information/ intelligence about corrupt communication strategy cannot be undermined. You company made practices committed, or likely to be committed by the employees of effective and robust use of all communication channels and platforms 65 the organization, investigating or causing an investigation to be made • Bringing fairness, competitiveness and accountability in the into verifiable allegations reported, processing investigation reports for organization further consideration of the disciplinary authority concerned, referring the matters to the Commission for advice wherever necessary, taking • Strengthening of Departmental Action Mechanism steps to prevent commission of improper practices/ misconduct, etc. • Curtailing discretions The main motive of Vigilance department is to help the organization to be routed to sound system and procedures so that employees can be • Promoting awareness amongst contractors guided by them and be focused on continual improvement of business practices. The vigilant workforce helps to prevent lapses, ensure • Educating/sensitizing the officials transparency at workplace, prevent leakages, which adversely affects • Monitoring of rotation of officials in sensitive posts productivity and profitability of organization. The onus therefore lies on each one of employees in imbibing these values in behaviour and (2) Punitive Vigilance:- demonstrating them in dealings and interactions. Punitive vigilance is aimed at deterring the occurrence of a lapse. This VIGILANCE FUNCTIONS deals with the verifiable allegations/ complaints reported to Vigilance unit. It includes investigation and collection of evidence and speedy The Vigilance Department of THDC India Limited has been doing departmental inquiries. On a preliminary investigation, if the complaint leveraging work in aligning the function with all processes of the is found to have vigilance angle, an enquiry for imposing punishment Organization and bridging the gap in employee’s understanding to delinquent employee is initiated in accordance with the laid down on the critical role of Vigilance function in internal process and its conduct rules & procedure. Absence of vigilance angle in various improvement. The Vigilance Functions can broadly be divided into three acts of omission and commission does not mean that the concerned parts. official is not liable to face the consequences of his actions. All such lapses not attracting vigilance angle would, indeed, have to be dealt (1) Preventive Vigilance with appropriately as per the disciplinary procedure under the conduct (2) Punitive Vigilance rules. The disciplinary authority, with the help of the Vigilance unit, carefully studies & investigates the case and weighs the circumstances (3) Surveillance & detection to come to a conclusion whether there is reasonable ground to doubt the integrity of the officer concerned. Under punitive vigilance, swift (1) Preventive Vigilance:- and deterrent action is taken against the real culprits. One of the thrust areas in ensuring integrity in public governance is (3) Surveillance & detection:- through the tool of Preventive Vigilance. Through Preventive Vigilance measures, THDCIL seeks to enable higher levels of transparency Detective vigilance is aimed at identifying and verifying the occurrence and efficiency in public governance across the organization. As part of a lapse. This deals with collection of intelligence about the corrupt of this endeavour, Vigilance Department has encouraged all units/ practices committed, or likely to be committed by the employees of projects to develop a preventive vigilance framework which will be an the organization. This could be done through surprise and regular enabler in the fight towards corruption by assessing the corruption inspections, scrutiny/ examinations in the sensitive areas of the prone areas, taking steps to correct policies, procedures and systems organization or through different reports such as Audit Reports, and strengthening of internal controls. Preventive vigilance is aimed Departmental Inspection Reports, etc. Reviewing & follow up of all at reducing the occurrence of a lapse (violation of a law, a norm, or, pending matters, such as investigation reports, disciplinary cases and broadly speaking, a governance requirement). other vigilance complaints/ cases for expediting action. This thrust on preventive vigilance has led to review and modification E-GOVERNANCE of the existing systems and procedures in keeping with the changing times and has also led to new initiatives and innovations. Therefore, The E-Governance is an application of information and communication to bring awareness, educate and sensitize employees on vigilance & technology for delivering Govt. services, exchange of information, allied matters, various awareness and training programs are conducted communicating transactions, integration of various stand alone periodically. systems and services between Govt. to citizen, Govt. to business, Govt. to Govt., Govt. to employees and interaction with in the entire Some of the preventive measures implemented/ adopted by the Government frame works. Leveraging of Information Technology can Company to eradicate corruption/ malpractices are as below: bring in efficiency and thereby strengthen the system by ensuring fair • Preventive – Precautionary play, transparency and equity. THDCIL in its endeavour to eradicate/ mitigate corruption has adhered to utilize leveraging various IT • Periodic surprise checks packages as effective tools in its administration. • Inspections, audit etc. In THDCIL, E-Governance enables good governance making the best policy decisions and implementing them in the major effective • Indentify loopholes in the system and measure to plug them manner. Good Governance simply means the process of making • Improving Transparency good decisions and their effective implementation. The key attributes of good governance as identified are Transparency, Responsibility, • Simplification of rules & procedures Accountability, Participation and Responsiveness. It is the best way to ensure that public funds are actually and effectively utilized for its • Developing checks within the system purpose for which they are sanctioned and what it actually meant for 66 the public welfare. CVC “Independent India@75: Self Reliance with Integrity”. Covid-19 prevention guidelines were adhered to & followed in all projects/ units As E-Governance, following services in respect of preventive vigilance during the observance of Vigilance Awareness Week -2021. On the are made available to stakeholders of organization in a convenient, efficient and transparent manner. occasion, the Vigilance department published a booklet “Integrity: A Way to Self Reliance” covering the Case Studies, CVC Circulars, • Online complaint management system, a major step to extend Systemic Improvements and Write-ups to create awareness amongst transparency has been developed and deployed. Vigilance MIS the officials. Pledge was administrated by CMD to all employees in system and Grievance Tracking System (GTS) through URL http:// Rishikesh and by HOPs in other Projects, in which Executives/ Staff www.thdc.co.in are in operation from March 2015 onwards. participated enthusiastically. THDCIL provided hyperlink for E-Pledge • Online submission of Annual Property Return (APR) through for Integrity Pledge on THDCIL website and Intranet to enable wider HRMS portal is being done by the employees. participation. Posters/Banners on Anti Corruption & Vigilance awareness were displayed at prominent locations in Projects/ Offices • E-payment practice has been introduced. 100% contractual payments are being made electronically. Conditions are and Townships of THDCIL. One day Training Programme on ‘Preventive accordingly being put in tender documents. Vigilance’ was organized for executives in Rishikesh & Tehri. Various vigilance awareness activities/ programs such as Digital painting for SYSTEMIC IMPROVEMENTS children and Essay Writing, Slogan Writing, Quiz Competition etc. were conducted for employees within the organization during the Vigilance Vigilance department carries Routine/ CTE type/ Surprise inspections Awareness Week. regularly. During the course of inquiry/ investigation, certain issues come to notice. Based on the observations/ learning from inspections & feedbacks, various system improvements are initiated & shared PROCUREMENT FROM MICRO AND SMALL with management. Such issues/ matters are brought to the notice of ENTERPRISES all concerned as a Systemic Improvement, so that mistakes are not During the financial year 2021-22, THDCIL has procured goods and repeated in future. During the period, Vigilance department issued 10 (Ten) numbers of Systemic Improvement relating to various cases. services from MSEs constituting 66.40% of total annual procurement value after excluding the value of items/ equipment/services which are VIGILANCE AWARENESS WEEK, 2021 either Original Equipment Manufacturers (OEMs) proprietary equipment and/ or not manufactured/provided by MSEs. Vigilance Awareness Week- 2021 was observed by THDC India Limited from 26.10.2021 to 01.11.2021 with the theme specified by Vigilance awareness week-2021 celebration at Corporate Office, Rishikesh 67 The details of the procurements made from Micro and Small Enterprises (MSEs) during the FY 2021-22 as required to be disclosed under Micro, Small and Medium Enterprises Development Act,2006 is as under: SI. No. Particular ` in Cr. I Total Annual procurement including GeM (in value)* (excluding insurance services) 32.7929 II Total value of goods and services procured including GeM from MSEs (including MSEs owned by 21.7739 SC/ST entrepreneurs). III Total value of goods and services procured including GeM from only MSEs owned by SC/ST entrepreneurs. 0.00 IV Total value of goods and services procured including GeM from only MSEs owned by Women entrepreneurs. 1.4296 V % of procurement from MSEs including GeM (including MSEs owned by SC/ST entrepreneurs) out of total 66.40% procurement VI % of procurement from MSEs including GeM owned by SC/ST entrepreneurs out of total procurement 0.00 VII % of procurement from MSEs including GeM owned by Women entrepreneurs out of total procurement 4.36% VIII Total number of Vendor development programme for MSEs - IX Whether Annual Procurement Plan for purchases from Micro and Small Enterprises are uploaded on the official Yes website. *This includes procurement of goods and services only. CONTRACTS AND ARRANGEMENTS WITH RELATED In compliance to “Securities and Exchange Board of India (LODR) PARTIES Regulations, 2015” and Guidelines on Corporate Governance for Central Public Sector Enterprises issued by Department of Public During the financial year 2021-22, the Company has not entered into Enterprises, a detailed report on the Corporate Governance is annexed any material transaction with any of its related party in terms of Section as per Annexure–I. 188 of Companies Act 2013. A certificate from practicing company secretary regarding compliance Disclosures of particulars of contracts/arrangements referred to in of conditions of corporate governance according to DPE guidelines sub-section (1) of section 188 of the Companies Act, 2013,Pursuant is also obtained from PCS and is enclosed as part of Corporate to clause (h) of sub-section (3) of section 134 of the Act and Rule 8 (2) Governance Report. of the Companies (Accounts) Rules,2014 is as under : CORPORATE SOCIAL RESPONSIBILITY (CSR) AND • Details of contracts or arrangements or transactions not at SUSTAINABLE DEVELOPMENT (SD) arm’s length basis. Nil Your Company is committed to the National and International goals • Details of material contracts or arrangement or transactions and has greater concern for social and environment sustainability. As at arm’s length basis: There was no material contract or required under Companies Act, 2013 and CSR Rules, 2% of average arrangement or transaction at arm’s length basis during the net profit of the company for 03 preceding years has been allocated for period under review : implementation of CSR. All CSR Projects are considered by the Below Board Level Committee (BBLC) and recommended by the Board Level a. Name(s) of the related party and nature of relationship - NA CSR and Sustainability Committee (BLC) to Board for approval. Before b. Nature of contracts/arrangements/transactions - NA implementation of CSR Projects preferably, Baseline Survey / Need Assessment is done to prioritize the activities. During the Financial c. Duration of the contracts / arrangements/transactions– NA year 2021-22 total expenditure to be incurred on CSR activities was ` d. Salient terms of the contracts or arrangements or transactions 26.23 Cr. which is 2% of net average profit of last three years. However, including the value, if any – NA the actual expenditure during the year on CSR activities is ` 27.21 Cr. Detailed Report on CSR is attached at Annexure-II. e. Date(s) of approval by the Board, if any - NA f. Amount paid as advances, if any - NA MANAGEMENT DISCUSSION AND ANALYSIS REPORT In compliance with DPE Guidelines on Corporate Governance a • Related Party Disclosure under Ind-AS – 24 are made in Note separate Report on Management Discussion and Analysis is attached No.42 (8) of Financial Statements. as Annexure-III to the Directors’ Report. CORPORATE GOVERNANCE CONSERVATION OF ENERGY, TECHNOLOGY Your Company’s philosophy on Corporate Governance is based on ABSORPTION AND FOREIGN EXCHANGE EARNINGS the principles of integrity, fairness, equity, transparency, accountability AND OUTGO and commitment to values. Your Company is committed to highest The particulars relating to conservation of energy, technology corporate governance standards by applying the best management absorption, foreign exchange earnings and outgo, as required to be practices, compliance of law in true letter and spirit and adherence to disclosed under section 134(3)(m) of the Companies Act, 2013 read ethical standards for effective management. with Rule 8 of the Companies (Accounts) Rules, 2014 are attached as Annexure-IV. 68 BUSINESS RESPONSIBILITY REPORT Companies Act, DPE Guidelines and SEBI (LODR) Regulations, 2015, as amended from time to time, which forms part of the As a part of Good Corporate Governance Practice Business Annual Report. Responsibility Report, regarding the disclosures of initiatives taken by the Company on environmental, social and governance issues is d. Since the provisions of Section 197 of the Companies Act, 2013 attached at Annexure-V. and Rules made thereunder, related to Managerial Remuneration, are not applicable to Government Companies, no disclosure is ANNUAL RETURN required to be made. Annual return (draft MGT-7) of the Company in accordance to section e. There are no material changes and commitments, affecting the 92(3) of the Companies Act, 2013 read with Rule 12 of the Companies financial position of the Company which has occurred between (Management and Administration) Rules, 2014 is provided at the the end of the financial year i.e. March 31, 2022 and the date of website of THDC India Limited. this report. (The weblink to access Annual Return for FY 2021-22 is f. The Company has not issued any stock options to the Directors https://thdc.co.in/en/annual-return) or any employee of the Company. DIRECTORS’ RESPONSIBILITY STATEMENT g. The details related to vigilance cases, replies to audit objections and RTI matters, etc. are duly incorporated in this report. In compliance to section 134(3)(c) of the Companies Act, 2013, the Directors hereby confirm the following: h. No application has been made or no proceeding is pending under the Insolvency and Bankruptcy Code. (a) in the preparation of the annual accounts, the applicable accounting standards have been followed along with proper OTHER DISCLOSURES explanation relating to material departures; INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY (b) the Directors have selected such accounting policies and applied them consistently and made judgments and estimates that are The Company has adequate internal financial controls with reference to reasonable and prudent so as to give a true and fair view of the financial statements. During the year, such controls were tested and no state of affairs of the Company at the end of the Financial Year reportable material weakness in the design or operation was observed. and of the profit of the Company for that period; The Statutory Auditor of the Company i.e. M/s S.N. Kapur & Associates, (c) the Directors have taken proper and sufficient care for the Chartered Accountants have in their report stated that the Company has maintenance of adequate accounting records in accordance with in all material respects, an adequate internal financial control system the provisions of the Companies Act, 2013 for safeguarding the with reference to financial reporting. assets of the Company and for preventing and detecting fraud and other irregularities; PARTICULARS OF LOANS AND GUARANTEES GIVEN, INVESTMENTS MADE AND SECURITIES PROVIDED (d) the Directors have prepared the annual accounts on a going concern basis; Pursuant to Section 186(11) of the Companies Act, 2013, loans made, guarantees given or securities provided by a company engaged in (e) the Directors have laid down internal financial controls to be the business of financing of companies or of providing infrastructural followed by the Company and that such internal financial controls facilities in the ordinary course of its business are not applicable to the are adequate and were operating effectively; and Company, hence no disclosure is required to be made. (f) the Directors have devised proper systems to ensure compliance During the Financial Year 2021-22, THDCIL made an investment with the provisions of all applicable laws and that such systems of ` 7.40 Cr. in subscribing to the shares of TUSCO Limited (A were adequate and operating effectively. Joint Venture Company of THDCIL and UPNEDA). As on 31st March STATUTORY DISCLOSURES 2022 investment made by THDCIL in its subsidiary TUSCO Ltd is ` 14.80 Cr. a. There was no change in the nature of business of the Company during the financial year 2021-22. DETAILS OF SIGNIFICANT AND MATERIAL, ORDERS PASSED BY THE REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE GOING b. The Company has not accepted any public deposits during the CONCERN STATUS AND COMPANY’S OPERATIONS IN FUTURE financial year 2021-22. No significant and material orders were passed by any regulator or c. Information on composition, terms of reference and number of court or tribunal impacting the going concern status and company’s meetings of the Board and its Committees held during the year, operations during the FY 2021-22. establishment of vigil mechanism/whistle blower policy and web-links for familiarization/training policy of Directors, Policy on MAINTENANCE OF COST RECORDS Materiality of Related Party Transactions and Dealing with Related Your Company has maintained cost records as specified by the Central Party Transactions, Compensation to Key Managerial Personnel, Government under sub-section (1) of section 148 of the Companies Sitting fees to Independent Directors, etc. have been provided in Act, 2013 for the year 2021-22. the Report on Corporate Governance, prepared in compliance of 69 Declaration by Independent Directors Management Accountants, New Delhi, have been appointed by the company as Cost Auditors to conduct the Audit of Cost Accounting Your Company has received declarations from all the Independent Records for Tehri HPP, Dhukwan SHP and Kasargod Solar Power Plant, Directors confirming that they meet the criteria of independence Koteshwar HEP and wind power projects respectively for the Financial as provided under Section 149(6) of the Companies Act, 2013 and Year 2021-22 under Section 148 of the Companies Act, 2013. Out of Securities and Exchange Board of India (Listing Obligations and the above appointed Cost Auditors, M/s K G Goel & Associates, Cost & Disclosure Requirements) Regulations, 2015. Management Accountants, New Delhi is lead Cost Auditor. AUDITOR AND AUDITORS’ REPORT The Cost Auditor has not given any reservations or Qualifications in his Report for the F.Y 2021-22. Statutory Auditors SECRETARIAL AUDIT Your Company being a Government Company, the appointment of Statutory Auditors is made by Comptroller and Auditor General of Secretarial Audit for the FY 2021-22 has been done by M/s PSR India under Section 139 of the Companies Act, 2013. M/s S N Kapur Murthy, a Practicing Company Secretary in compliance of Section & Associates, Chartered Accountants, 1 Maitri Vihar, Haridwar By 204(1) of the Companies Act, 2013. The Company has complied with Pass Road, Opp. Nageswati Chikitsa Kendra, Dehradun-248001, were all the Secretarial Provisions and no case of default is reported. The appointed as Statutory Auditor of the Company by C&AG vide their Report of the Secretarial Auditor is attached as Annexure VI. letter no. CA.V/COY/CENTRAL GOVERNMENT, TEHRIH (1)/52 dated 18/08/2021 under Section 139 of the Companies Act, 2013. DEBENTURE TRUSTEES Management Comments on the Statutory Auditor’s report The details of Debenture Trustees appointed for the Corporate Bonds issued by your company are as under: The Statutory Auditors of the Company have given an unqualified report on the Accounts of the Company for the financial year 2021-22. Hence Name and Address of Trustee comments of the Company is “NIL”. Vistra ITCL (India) Ltd. Review of Accounts by Comptroller & Auditor General of India. 6TH Floor, The IL&FS Financial Centre, Plot C-22, G-Block, Bandra Comments of the C&AG Kurla Complex, Bandra East, Mumbai-400051 The Comments of Comptroller & Auditor General of India as supplement ACKNOWLEDGEMENT to the Statutory Auditors’ Report under Section 143(6)(b) of the Companies Act, 2013 on the Accounts of the Company for the year The Board of Directors of your Company are highly thankful for the ended March 31, 2022 and management explanation on the comments enormous support and guidance extended by the Ministry of Power, are enclosed . Govt. of India, NTPC Ltd, Central Electricity Regulatory Commission, State Governments and their Ministries, Departments/Boards, Bankers, PERFORMANCE EVALUATION OF DIRECTORS & BOARD Financial Institutions, Lenders and Investors. The Board places Ministry of Corporate Affairs (MCA), through General Circular dated its special appreciation to our valued customers, State Electricity 5th June, 2015, has exempted Government Companies from the Boards and Discoms and other valuable clients of our consultancy provisions of Section 178(2) of the Companies Act, 2013 which assignments. requires performance evaluation of every director by the Nomination The Directors hereby wish to place on record their appreciation of the & Remuneration Committee. The aforesaid circular of MCA further efficient and loyal services rendered by each and every employee, exempted Govt. Companies from provisions of Section 134(3)(p) of without whose whole-hearted efforts, the overall satisfactory the Companies Act, 2013 which requires mentioning the manner of performance would not have been possible. The Board also formal evaluation of its own performance by the Board and that of its appreciates the contribution of contractors, vendors and consultants in Committees and Individual Director in Board’s Report, if directors are the implementation of various projects of the Company. evaluated by the Ministry or Department of the Central Government which is administratively in charge of the Company, or, as the case Your directors acknowledge the constructive suggestions received may be, the State Government as per its own evaluation methodology. from Statutory Auditors and Comptroller and Auditor General of India Deptt. of Public Enterprises (DPE) has laid down a mechanism for and are grateful for their continued support and cooperation. performance appraisal of all functional directors and evaluation of Independent Directors. In terms of Regulation 25 of SEBI LODR, 2015, the performance of the For and on behalf of Board of Directors Board as a whole and non independent directors including Chairman & Managing Director were evaluated by the Independent Directors in a Sd/- separate Meeting held on 31st March 2022. Rajeev Kumar Vishnoi Chairman and Managing Director Cost Auditors and Cost Auditors’ Report DIN: 08534217 M/s K G Goel & Associates, Cost & Management Accountants, Date : 20.09.2022 New Delhi and M/s K B Saxena & Associates, Cost & Management Place: New Delhi Accountants, New Delhi, M/s S.C Mohanty & Associates, Cost & 70 Annexure – I to Directors’ Report REPORT ON CORPORATE GOVERNANCE To Management, the Board and committees thereof ensure that THDC India Limited continues to remain a company of uncompromised The Members integrity, excellence and is driven towards responsible growth. THDC India Limited (“THDCIL” or “the Company”), believes in good Corporate Governance practices, ethics, fairness, professionalism, 2. BOARD OF DIRECTORS and accountability to enhance stakeholders’ value and interest on The Board of Directors have the responsibility of ensuring sustainable basis and to build an environment of trust and confidence effective management, long term business strategy, general of its Stakeholders. At THDCIL, we follow systematic processes, affairs, performance and monitoring the effectiveness of the policies, rules, regulations, and laws by which companies are directed, Company’s corporate governance practices. The Chairman and controlled, and administered by the management in meeting the Managing Director is in charge of the management of the affairs stakeholder’s aspirations and societal expectations. of the Company, executing business strategy in consultation with the Board and achieving annual and long-term business goals. In compliance with Companies Act, 2013, Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) 2.1. SIZE OF THE BOARD Regulations, 2015, DPE Guidelines on Corporate Governance for Central Public Sector Enterprises, 2010 and Secretarial Standards Your Company is a Government Company within the issued by the Institute of Company Secretaries of India, your company meaning of Section 2(45) of Companies Act, 2013 with adheres to all applicable corporate governance requirements. Equity Share Holding of 74.496% by NTPC Limited and 25.504% by Governor of Uttar Pradesh. The business of Your directors are pleased to present the Company’s Report on the company is superintended by the Board of Directors. Corporate Governance for the Financial Year 2021-22 followed by As per Share Purchase Agreement signed between NTPC Certificate on Corporate Governance by the Secretarial Auditor. It is Limited and Govt. of India, NTPC Limited will have the our pleasure to share with you that the Company has got ‘Excellent’ by right to nominate two nominee Directors in the company. DPE for Compliance with Guidelines on Corporate Governance for the However, as per the Articles of Association of the Company, year 2021-2022. the power of appointment of Director rests with the President of India except two nominee Directors who are appointed 1. Brief statement on company’s philosophy by the Governor of Uttar Pradesh. As per the articles of the on Corporate Governance company, the President of India determine the number of Directors of the Company, which shall not be less than seven Your Company believes that Corporate Governance involves a and not more than fifteen. set of rules and controls that promote transparency, integrity, and accountability within which all stakeholders of the Company 2.2. COMPOSITION OF THE BOARD viz., its shareholders, directors and management, society and environment at large have aligned incentives. It provides the The Board of Directors has an ideal combination of framework for attaining a company’s objectives while balancing executive and non-executive Directors and is in conformity the interests of all its stakeholders and ensuring that the with the provisions of Companies Act, 2013 which inter Company’s businesses are being conducted in an accountable alia stipulates that the Board should have an optimum and fair manner. While the philosophy of your Company on combination of Executive and Non-Executive Directors with governance has been set out since the early days, the framework at least one woman Director. Presently, the Board comprises is flexible enough to allow the Company to cater to various needs of the Chairman and Managing Director, Functional Directors, of the society in the current time. Nominee Directors of NTPC Ltd., Nominee Directors of Government of India and Government of Uttar Pradesh and The Company believes that Corporate Governance is also about Independent Directors. what the Board does and how it sets the values of the Company and drives the Company’s business with its principles. The As on 31st March, 2022 THDCIL Board comprises of two Board strongly agrees that good governance is not merely an Functional Directors including Chairman and Managing objective, but only means to achieve the objective of operating Director, one nominee Director of Govt. of India, two NTPC as a corporate citizen. It is distinguished from the day-to-day Ltd. Nominee Directors and three Independent Directors operational engagement of the Company by full-time executives. including one women Director. The Directors of THDCIL have The responsibilities of your Board thus include implementing the requisite qualification, expertise and experience that allow the principles of Corporate Governance in the Company, setting them to efficiently manage the business of the Company and the Company’s strategic aims, guiding the management with make effective contribution to the Board. their leadership, and reporting to shareholders. Together, the 71 The details of the Board of Directors viz. their names, designation, the number of Directorships and Committee Chairmanships / Memberships held by them in other companies and names of other listed entities in which the Director is a Director as on March 31, 2022 are given herein below: S. Name of the Directors Designation No. of other Directorship held in No. of other committee No. Directorship other Listed Entities memberships and Category of Directorships As Chairman As Member 1. Sh. R.K. Vishnoi Chairperson & Managing 1 - - - Director 2. Sh. J. Behera Director (Finance) 1 - - 2 3. Shri A.K. Gautam * NTPC Ltd. 4 1 0 6 Nominee Director NTPC Limited Executive Director 4. Sh. U. K. Bhattacharya NTPC Ltd. 6 1 2 3 Nominee Director NTPC Limited Executive Director 5. Sh. Jithesh John Nominee Director, GoI 1 - - 3 6. Smt. Sajal Jha Independent Director - - 1 3 7. Dr. Jayaprakash Naik B. Independent Director - - 3 4 8. Shri Kesridevsingh D. Jhala Independent Director 1 - - - *Ceased to be Director on 31.05.2022 Changes in the composition of Board of Directors 1. Due to attaining the age of superannuation Shri D.V Singh and 6. The Ministry of Power, Government of India vide its Order No. Shri Raj Pal have ceased to be Chairman and Managing Director 14-11/18/2021-H.I (259305) dated 6th October, 2021 conveyed and Nominee Director of Government of India respectively in the for entrustment of additional charge of the post of Director Board of THDCIL w.e.f. 30.04.2021. (Personnel), THDCIL to Shri R.K. Vishnoi, CMD THDCIL w.e.f. 01.11.2021. The additional charge was further extended by 2. The Ministry of Power, Government of India vide its Order No. Ministry of Power. 14-11/30/2020-H.I (255493) dated 12 April, 2021 assigned the additional charge of the post of Chairman & Managing Director, 7. Due to attaining the age of superannuation Shri T. Venkatesh, has THDCIL to Shri Vijay Goel, Director (Personnel), THDCIL for ceased to be Nominee Director of GoUP w.e.f. 31.01.2022 and a period of three months w.e.f. 01/05/2021. Ministry of Power Shri Anil Garg was appointed as Nominee Director of Government further extended the additional charge assigned to Shri Vijay Goel of Uttar Pradesh w.e.f. 26.04.2022. w.e.f. 01.08.2021. Due to attaining the age of superannuation Shri 8. The Ministry of Power, Government of India vide its Order No. Vijay Goel has ceased to be Director in the Board of THDCIL w.e.f. 14-37/43/2021-H.I (259063) dated November 10, 2021 has 31.10.2021. appointed Dr. Jayaprakash Naik B.(DIN:09423574) and Smt. Sajal 3. The Ministry of Power, Government of India vide its Order No. Jha (DIN: 09402663) as Non-official Independent Director on 14-11/4/2020-H.I (251966) dated 6th August, 2021 conveyed the Board of THDCIL for a period of three years from the date of the appointment of Shri R.K. Vishnoi as Chairman and Managing notification of his appointment or till further orders. Director w.e.f. 06.08.2021. 9. The Ministry of Power, Government of India vide its Order No.14 4. The Ministry of Power, Government of India vide its Order No. -37/43/2021-H.I (259063) dated March 28, 2022 has appointed 14-11/10/2021-H.I (258704) dated 3rd September, 2021 Shri Kesridevsingh D. Jhala (DIN: 09101303) as Non-official conveyed for entrustment of additional charge of the post of Independent Director on the Board of THDCIL for a period of three Director (Technical), THDCIL to Shri R.K. Vishnoi, CMD THDCIL years from the date of notification of his appointment or till further w.e.f. 06.08.2021. The additional charge was further extended orders. by Ministry of Power till 05.08.2022 or till the appointment of a 10. Due to attaining the age of superannuation Shri A.K Gautam has regular incumbent or till further orders, whichever is earlier. ceased to be Nominee Director, NTPC Limited on the Board of 5. Ministry of Power vide its letter No. 14-37/22/2017-H.I (238665) THDCIL w.e.f. 31.05.2022. conveyed the appointment of Shri Jithesh John, Economic 11. Ministry of Power vide its letter F. No. 14-7/1/2022-H.I(260878) Adviser, MoP as Government of India Nominee Director on the dated 2nd June, 2022 conveyed the entrustment of additional Board of THDCIL w.e.f. 21.06.2021. charge of the post of CMD-NEEPCO & Director (Technical), NEEPCO to Shri R.K. Vishnoi, CMD THDCIL w.e.f. 01.06.2022. 72 None of the Directors on the Board is a member of more than 10 2.5. Core competencies of Directors Committees or Chairperson of more than 5 Committees across all the public companies in which they are a Director as prescribed The Board comprises of qualified members who bring in the required under Regulation 26 of SEBI (LODR), 2015. None of Directors of the skills, competence and expertise to effectively contribute in deliberations Company is inter-se related to other Directors of the Company. at Board and Committee meetings. The matrix given at Annex-I summarizes a mix of skills, expertise and competencies possessed 2.3. AGE LIMIT AND TENURE OF DIRECTORS by Directors. It is pertinent to mention that being a Government Company, appointment of Director is made by the Government of India The age limit of Chairman & Managing Director and Whole Time in accordance with the DPE Guidelines. Directors is 60 years. The Chairman & Managing Director and other Whole Time Directors are appointed for a period of five years from the 2.6. TRAINING PROGRAMMES OF DIRECTORS date of assumption of the charge or till the date of superannuation, whichever event occurs earlier. At the time of induction of a new Director, a welcome letter is addressed to them along with details of duties and responsibilities Non- Executive Directors serving in Ex-officio capacity as representatives required to be performed as a Director. The Board members based of Administrative Department of Govt. of India/Govt. of Uttar Pradesh on their requirement, attend various seminars, conferences, training will retire on ceasing to be an official of that Administrative Department. programmes from time to time. Directors are being imparted training The directorship of Nominee Directors appointed by NTPC Limited in organised from time to time by the Company and other agencies/ THDCIL shall be coterminous with directorship in NTPC Limited. institutions with a view to augment leadership qualities, knowledge, Independent Directors are appointed by Government of India usually and skills. The training also enables them to get a better understanding for tenure of three years. of sector as well as the Company. Directors are also briefed from time to time about changes/ developments in Indian as well as 2.4. Profile of Directors international corporate and economic scenario including Legislative/ Regulatory changes. At the time of induction, Independent Directors Brief profile of Directors including their educational background, area undergo a familiarization programme which highlights organisation of experience etc. is given in under Corporate Overview Section– structure, subsidiaries/ joint ventures, business model of the company, Directors’ Brief Profile in the Annual Report. risk profile of the business, role and responsibilities of Independent Directors etc. Web link of details of familiarization programme imparted to Independent Directors is as under: https://thdc.co.in/sites/default/ files/FAMILIARIZATION_PROGRAMME.pdf. 2.7. APPOINTMENT AND CESSATION OF DIRECTORSHIPS DURING THE YEAR 2021-22 The details of appointment and cessation of directorship in THDCIL for the Financial Year 2021-22 are given below: Name of the Director Change in Designation Effective Date Shri D.V. Singh Cessation 30.04.2021 Ex-Chairman & Managing Director Shri Raj Pal Cessation 30.04.2021 Ex- Nominee Director, GoI Shri Vijay Goel Entrustment of Additional 01.05.2021 Charge of CMD Shri R.K. Vishnoi Appointment Chairman & Managing Director 06.08.2021 Entrustment of Additional Charge of Director (Technical) 06.08.2021 Entrustment of Additional Charge of Director (Personnel) 01.11.2021 Shri Jithesh John Appointment 21.06.2021 GoI Nominee Director Shri Vijay Goel Cessation 31.10.2021 Ex-Director (Personnel) Shri T. Venkatesh Cessation 31.01.2022 Ex-Nominee Director, GoUP Dr. Jayaprakash Naik B. Appointment 10.11.2021 Independent Director Smt. Sajal Jha Appointment 10.11.2021 Independent Director Shri Kesridevsingh D. Jhala Appointment 28.03.2022 Independent Director 73 2.8. BOARD MEETINGS AND ATTENDANCE meaningful, informed, and focused discussions in the meeting. Eight (8) meetings of the Board of Directors were held during the year under The meetings of the Board of Directors are convened by giving review and gap between two meetings did not exceed one hundred appropriate advance notices. To address any urgent needs, sometimes and twenty days. The said meetings were held on 10th April, 2021 and Board meetings are also called at a shorter notice subject to 24th April, 2021, 9th June, 2021, 28th July, 2021, 21st August, 2021, observance of statutory provisions. In case of urgency, resolutions 15th September 2021, 23rd October 2021, 23rd December 2021 and are also passed through circulation, if permitted under the statute. 14th February 2022. The necessary quorum was present for all Detailed agenda notes, management reports and other explanatory meetings. The table below shows attendance of the Board members in statements are normally circulated at least a week before the Board Board meetings held during the FY 2021-22 and their attendance at the Meeting in a defined format amongst the Board Members for facilitating last Annual General Meeting: Name of Directors Meeting held Board Meetings Attendance of last AGM during the tenure (held on September 15, 2021) Attended Percentage of Attendance FUNCTIONAL DIRECTORS Shri R. K. Vishnoi* 8 8 100% Attended (Chairman & Managing Director from 06.08.2021) Shri J. Behera 8 8 100% Attended Director (Finance) Shri D. V. Singh 1 1 100% Not Attended (Chairman & Managing Director till 30.04.2021) Shri Vijay Goel 6 6 100% Attended (Additional Charge of CMD from 01.05.2021- 05.08.2021) Director(Personnel) till 31.10.2021) Nominee Directors Shri A.K. Gautam ** 8 8 100% Attended NTPC Nominee Director Shri U. K. Bhattacharya 8 7 87.5% Attended NTPC Nominee Director Shri Jithesh John 6 6 100% Attended GoI Nominee Director from 21.06.2021 Smt. Sajal Jha 2 2 100% Not Attended Independent Director from 10.11.2021 Dr. Jayaprakash Naik B. 2 2 100% Not Attended Independent Director from 10.11.2021 Shri Raj Pal 1 1 100% Not Attended GoI Nominee Director till 30.04.2021 Shri T. Venkatesh 7 1 14.28% Not Attended GoUP Nominee Director till 31.01.2022 Shri Kesridevsingh D. Jhala*** 0 0 - Not Attended Independent Director from 28.03.2022 *Entrusted with Additional Charge of Director (Personnel), THDCIL & Director (Technical), THDCIL **Ceased to be Director w.e.f. 31.05.2022. ***Appointed as Independent Director w.e.f. 28.03.2022 74 2.9. DIRECTORS’ COMPENSATION & DISCLOSURES Further, the Part time Non-Official Independent Directors are paid sitting fees@` 30,000 per sitting for meetings of Board as well as Committee Your Company, being a Government Company under the administrative meetings (sitting fee is fixed by Board) as per Rule 4 of Companies control of Ministry of Power, Govt. of India, thus the appointment, (Appointment and Remuneration of Managerial Personnel) Rules, 2014 tenure and remuneration of Chairman & Managing Director, Whole read with section 197 of Companies Act, 2013. Part-time Directors Time Functional Directors and other Directors are decided by the nominated by Government & NTPC Limited in Ex-officio capacity are President of India as per the Articles of Association of the Company not paid any kind of remuneration/sitting fee from the Company. and the same are communicated by the Administrative Ministry. The remuneration of Functional Directors and employees of the Company Details of payments towards sitting fees (excluding GST) for attending is fixed as per extant guidelines issued by DPE, from time to time. The Board/ Committee meetings to Independent Directors during the Board in its 222nd meeting held on 14.02.2022 increased the sitting fee financial year 2020-21 are given below: of Independent Directors from ` 20,000 to ` 30,000. S. No. Name of Independent Director Sitting fees Total Board Meetings Committee Independent Directors Meetings Meeting 1. Smt. Sajal Jha 40,000 40,000 30,000 1,10,000 2. Dr. Jayaprakash Naik B. 40,000 70,000 30,0000 1,40,000 3. Shri Kesridevsingh D. Jhala* - - - - *Appointed on 28.03.2022 Details of remuneration of Whole-time Functional Directors, Chief Financial Officer and Company Secretary of the company paid for F.Y. 2021-22 are given below: Remuneration of Whole-time Directors and Key Managerial Personnel (Amount in `) S. Name of Directors Designation Salary & Bonus/ Performance Related Gross Total No. Allowances # Commission* Pay (PRP) 1. Sh. Rajeev K. Vishnoi C&MD 4648291 NA 2481139 7129430 2. Sh. J. Behera Director(Finance) 4183728 NA 2225836 6409564 3. Sh. D.V. Singh Ex-Chairman & 1282008 NA 0 1282008 Managing Director 4. Sh. Vijay Goel Ex -Director(Personnel) 2909149 NA 1767019 4676168 5. Ms. Rashmi Sharma Company Secretary 1643675 NA 458652 2102327 #: Salary and allowances include leave encashments. 2.10. Board Independence 3. Ms. Rashmi Sharma, Company Secretary All the Independent Directors have given the declaration that they 2.12. PERFORMANCE EVALUATION OF BOARD meet the criteria of independence to the Board of Directors as per the MEMBERS provisions of the Companies Act, 2013 and SEBI (LODR). Terms and conditions of appointment of Independent Directors are hosted on MCA vide Notification dated July 5, 2017 prescribed that the provisions the website of the Company at https://thdc.co.in/sites/default/files/ relating to review of performance of Independent Directors and Appointment_Independent_Directors.pdf evaluation mechanism, prescribed in Schedule IV of the Companies Act, 2013, is also not applicable to Government Companies. During 2.11. KMP (KEY MANAGERIAL PERSONNEL) the financial year 2021-22, the performance evaluation of the Non- Executive Independent Directors of the Company was carried out As per the Section 203(1) of Companies Act, 2013, and Rule 8 of by the Administrative Ministry/Department of Public Enterprises as Companies (Appointment and Remuneration of Managerial Personnel) per their internal guidelines. Functional Directors are evaluated by Rules, 2014 every company belonging to prescribed class or classes the Administrative Ministry as per its own evaluation methodology. of companies shall have the whole-time Key Managerial Personnel Deptt. of Public Enterprises (DPE) has laid down a mechanism for (KMP). Accordingly, THDCIL has designated following key managerial performance appraisal of all Functional Directors and evaluation of personnel. Independent Directors which is used for evaluation of Board members. 1. Shri Sh. R.K Vishnoi, Chairman & Managing Director 2.13. SEPARATE MEETINGS OF INDEPENDENT 2. Shri J. Behera, Director (Finance) & Chief Financial Officer DIRECTORS 75 A separate meeting of Independent Directors was held on March concerned Departments and an action-taken on the decisions of 31, 2022, in compliance of Companies Act, 2013, SEBI (LODR) and the Board is regularly placed before the Board in form of Action Guidelines on Corporate Governance for CPSEs, 2010 issued by DPE, Taken Report which helps in effective reporting on follow-up and which was attended by the Independent Directors of THDC India Limited. review of decisions. In terms of Regulation 25 of SEBI LODR, 2015, the performance of the Board as a whole and Non Independent Directors including Chairman v. Compliance : & Managing Director were evaluated by the Independent Directors in a It is our endeavor to ensure compliance of all applicable provisions separate Meeting held on 31st March 2022. of law, rules and guidelines. The company ensures compliance of all applicable provisions of the Companies Act, 2013 (to the extent 2.14. BOARD MEETING PROCEDURES these are applicable), SEBI Regulations & Guidelines, Listing i. Decision making Process: Agreement and other statutory requirements under different laws. The Company is also complying with the Secretarial Standards The Company has laid down a set of guidelines and follows issued by the Institute of Company Secretaries of India in respect secretarial standards for the meetings of the Board of Directors of Meetings of Board and Shareholders. The Board of Directors with a view to professionalizing all corporate affairs. These review the legal compliance report placed before it from time to guidelines seek to systematize the decision making process in time. Board meetings in an informed and efficient manner. vi. Information to be placed before Board of Directors : ii. Scheduling and selection of agenda items for Board meetings: • All technical matters for approval and information belong to all 1. The meeting dates are usually finalized after consultation with projects of THDC India Limited. all Directors, in order to ensure presence of all Board Members. The meetings are convened by giving appropriate notice after • Annual operating plans, budgets and related updates. obtaining the approval of the Chairman of the Board. Detailed • Capital budgets and related updates. agenda notes, management reports are circulated in advance, to the Directors to facilitate meaningful, informed and focused • Proposals relating to raising of funds. decisions during the meeting. • Proposals for sanction of financial assistance. 2. To address specific urgent business needs, sometimes meetings are also called at shorter notice in compliance of the applicable • Quarterly, Half Yearly and Annual Financial Results. statutory provisions and utmost efforts are made to adhere to the • Minutes of Previous Board Meetings, committee meetings of the minimum notice & agenda period. In some instances, resolutions company and Board meeting of Subsidiary Companies. are passed by circulations which are noted in the next Board Meeting. • The information of appointment or cessation of Directors and Key Managerial personnel including the information on recruitment of 3. Wherever it is not practical to attach voluminous documents to senior officers just below the level of Board of Directors. the agenda, such papers are placed on the table in the meeting. The agenda papers are circulated after obtaining the approval of • Minutes of meetings of Audit Committee and other Committees of the concerned Functional Director and CMD. the Board. 4. Presentations are given in the Board meetings on certain Agenda • General Business issues as per powers of Board. matters to enable members to take informed decisions. • Major investments, formation of subsidiaries, joint ventures and 5. The members of the Board have complete access to all information strategic alliances. of the Company. The Board is also free to recommend any issue that it may consider important for inclusion in the agenda. Senior • Quarterly information with respect to purchases/works/contracts Management officials are called to provide additional inputs to the awarded on nomination basis. matters being discussed by the Board, as and when necessary. • Status of Progress report of projects. iii. Recording of minutes of the Board/Committee meetings: • Quarterly report on compliance of various laws. The draft Minutes of the proceedings of each Board/Committee • Disclosure of interest by Directors about their directorships. Meeting are duly circulated to all members for their comments within fifteen days from the conclusion of the Meeting. The • Significant capital investment proposals or award of large Directors communicate their comments on the draft Minutes contracts. within seven days from the date of circulation thereof. A comparative sheet of all comments received from Directors are • Status of arbitration cases. placed before the Chairman & Managing Director/Chairman of respective Committees for consideration and approval thereof. • Significant labour problems and their proposed solutions. Any The approved minutes of proceedings of each Board/Committee significant development in Human Resources/Industrial Relations Meeting are duly recorded in the minutes book. front like signing of wage agreement, implementation of Voluntary Retirement Scheme, etc. iv. Follow-up mechanism : • Show cause, demand, prosecution notices and penalty notices, if Directions issued by the Board are regularly communicated to any, which are materially important. 76 • Fatal or serious accidents, dangerous occurrences, any material members: effluent or pollution problems, if any. S. No. Name of Member Designation • Any issue, which involves possible public or product liability claims of substantial nature, including any judgment or order which, may 1. Dr. Jayaprakash Naik B., Chairperson have passed strictures on the conduct of the Company or taken an Independent Director adverse view regarding another enterprise that can have negative 2. Smt. Sajal Jha, Member implications on the Company. Independent Director • Changes in significant accounting policies and practices along 3. Smt. A.K. Gautam, Member with reasons thereof. NTPC Nominee Director • Quarterly results for the listed entity and its operating divisions or Director (Finance) /CFO invariably attends the meeting as Special business segments. Invitee. Functional Directors, Internal Auditor, Statutory Auditors, and concerned GMs are specifically invited as and when required to be • Any material default in financial obligations to and by the listed present in the meetings of the Audit Committee, as may be decided by entity, or substantial non-payment for goods sold by the listed the Chairperson of the Audit Committee. The Company Secretary acts entity. as Secretary to the Audit Committee. • Transactions that involve substantial payment towards goodwill, 3.1.2. Terms of Reference brand equity, or intellectual property. The Terms of Reference of Audit Committee are as under: • Sale of investments, subsidiaries, assets which are material in nature and not in normal course of business. i. The recommendation for appointment, remuneration and terms of appointment of auditors of the company; • Any other information required to be presented to the Board either for information or approval as per the requirement of applicable ii. Review and monitor the auditor’s independence and performance, laws. and effectiveness of audit process; 3. COMMITTEES OF BOARD OF DIRECTORS iii. Examination of the financial statement and the auditors’ report thereon; The Board functions either as full Board or through various Committees constituted to oversee specific operational areas. Each Committee iv. Approval or any subsequent modification of transactions of the of the Board is guided by its terms of reference, which defines the company with related Parties; composition, scope and powers of the Committee as prescribed under v. Scrutiny of inter-corporate loans and investments; Companies Act, 2013 and SEBI (LODR), 2015. The Committees meet at regular intervals and focus on specific areas and make informed vi. Valuation of undertakings or assets of the company, wherever it decisions within the authority delegated to them. The company has five is necessary; Board Level Committees which are as under: vii. Evaluation of internal financial controls and risk management a. Audit Committee systems; b. Nomination And Remuneration Committee viii. Monitoring the end use of funds raised through public offers and related matters; c. Stakeholders’ Relationship Committee ix. To review the follow up action on the audit observations of d. Risk Management Committee the C&AG Audit. Review the follow up action taken on the e. CSR & Sustainability Committee recommendations of Committee on Public Undertakings (COPU) of the Parliament; The Company Secretary serves as the Secretary to Board Level Committees. x. Oversee financial reporting process of company and the disclosure of its financial information to ensure that the financial 3.1. AUDIT COMMITTEE statement is correct, sufficient and credible; The composition, scope, etc. of the Audit Committee are in line with xi. Approval of payment to statutory auditors for any other services the Companies Act, 2013, SEBI (LODR), 2015 and DPE Guidelines on rendered by the statutory auditors; Corporate Governance. xii. Reviewing, with the management, the annual financial statements 3.1.1. Composition of Audit Committee and auditor’s report thereon before submission to the Board for approval, with particular reference to: As on 31st March 2022, the Audit Committee comprised of the following 77 (a) matters required to be included in the Directors’ responsibility xxi. to look into the reasons for substantial defaults in the payment to Statement to be included in the Board’s report in terms of clause the depositors, debenture holders, shareholders (in case of non- (c) of sub-section (3) of Section 134 of the Companies Act, payment of declared dividends) and creditors; 2013; xxii. to review the functioning of the whistle blower mechanism; (b) changes, if any, in accounting policies and practices and reasons for the same; xxiii. approval of appointment of chief financial officer after assessing the qualifications, experience and background, etc. of the (c) major accounting entries involving estimates based on the candidate; exercise of judgment by management; xxiv. to consider and comment on rationale, cost-benefits and impact (d) significant adjustments made in the financial statements of schemes involving merger, demerger, amalgamation etc., on arising out of audit findings; the listed entity and its shareholders. (e) compliance with listing and other legal requirements relating xxv. any matter referred to it by the Board or any other terms of to financial statements; reference as amended by the Companies Act, 2013 & rule made thereunder, Sebi (LODR) and DPE Guidelines. (f) disclosure of any related party transactions; 3.1.3. POWERS OF AUDIT COMMITTEE: (g) modified opinion(s) in the draft audit report; Commensurate with its role, the Audit Committee shall exercise xiii. reviewing, with the management, the quarterly financial powers, which include the following: statements before submission to the Board for approval; • The Audit Committee shall have authority to investigate into any xiv. reviewing, with the management, the statement of uses / matter specified above or referred to it by the Board and for this application of funds raised through an issue (public issue, rights purpose, shall have full access to information contained in the issue, preferential issue, etc.), the statement of funds utilized records of the Company. for purposes other than those stated in the offer document / prospectus / notice and the report submitted by the monitoring • To seek information on and from any employee. agency monitoring the utilisation of proceeds of a public or rights issue, and making appropriate recommendations to the Board to • To obtain outside legal or other professional advice, if necessary. take up steps in this matter; • To secure attendance of outsiders with relevant expertise, if it xv. reviewing and monitoring the auditor’s independence and considers necessary. performance, and effectiveness of audit process; • The recommendations of the Audit Committee on any matter xvi. reviewing, with the management, performance of statutory and shall be considered by the Board. internal auditors, adequacy of the internal control systems; 3.1.4. REVIEW OF INFORMATION BY AUDIT COMMITTEE xvii. reviewing the adequacy of internal audit function, if any, The Audit Committee shall review the following information: including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting • Management discussion and analysis of financial condition and structure coverage and frequency of internal audit; results of operations; xviii. discussion with internal auditors of any significant findings and • Management letters / letters of internal control weaknesses follow up there on; issued by the statutory auditors; xix. reviewing the findings of any internal investigations by the • Internal audit reports relating to internal control weaknesses; and internal auditors into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material • the appointment, removal and terms of remuneration of the chief nature and reporting the matter to the Board; internal auditor shall be subject to review by the audit committee. xx. discussion with statutory auditors before the audit commences, 3.1.5. MEETINGS AND ATTENDANCE about the nature and scope of audit as well as post-audit During the year 2021-22, one meetings of Audit committee was held discussion to ascertain any area of concern; and details including attendance of members of the committee are as follows: Name of Member Meeting Date Total Meetings held No. of Meetings % of 14-02-2022 during the tenure Attended Attendance Dr. Jayaprakash Naik B. Attended 1 1 100 Smt. Sajal Jha Attended 1 1 100 Smt. A.K. Gautam Attended 1 1 100 Note: Director (Finance), THDCIL is permanent special invitee to all Audit Committee Meetings. 78 3.2. NOMINATION AND REMUNERATION COMMITTEE As per the requirements of Section 178 of the Companies Act, 2013, Regulation 19 of SEBI (LODR) and DPE Guidelines, a Nomination & Remuneration Committee (NRC) has been constituted. Being a Government Company, as per the Articles of Association, all Directors including the Chairman & Managing Director except nominee Director of GoUP are appointed by the President of India. Their tenure and remuneration are also fixed by the Government of India. As appointment of Directors are made by the Government of India, accordingly, evaluation of Directors is done by the Government of India. It may also be noted that Ministry of Corporate Affairs (MCA) vide notification dated 5th June 2015, has exempted Government Companies from the provisions of section 178(2), (3) and (4) which requires formulation of criteria for determining qualifications, positive attributes, independence and annual evaluation of Directors & policy relating to remuneration of Directors. 3.2.1. Composition of Nomination and Remuneration Committee As on 31st March, 2022 the Nomination and Remuneration committee comprised of the following members: S. Name of the Members Designation No. 1. Smt. Sajal Jha, Independent Director Chairperson 2. Dr. Jayaprakash Naik B., Independent Director Member 3. Shri Jithesh John, Nominee Director, MoP, GoI Member 4. Shri U.K. Bhattacharya, Nominee Director, NTPC Ltd. Member 3.2.2. MEETING AND ATTENDANCE During the financial year 2021-22, one (1) meeting of Nomination and Remuneration Committee was held. Details of the meeting including the attendance of the committee are as follows: Name of Member Meeting Date Total Meetings held No. of Meetings % of Attendance 14-02-2022 during the tenure Attended Smt. Sajal Jha 1 1 1 100% Dr. Jayaprakash Naik B. 1 1 1 100% Shri Jithesh John 1 1 1 100% Shri U.K. Bhattacharya 1 1 1 100% 3.3. Stakeholders’ Relationship Committee 3.3.2. Name and designation of Compliance Officer This Committee has been constituted in line with the provisions of The Board of Directors has appointed Ms. Rashmi Sharma, Company SEBI (LODR) and Companies Act, 2013. It considers and resolves Secretary as the Company Secretary & Compliance Officer of THDC the grievances of security holders of the Company inter-alia including India Limited in terms of Regulation 6 of SEBI (LODR). grievances related to transfer of shares, non-receipt of Annual Report, 3.3.3. Centralized Web Based Redressal System-Scores non receipt of dividend etc. The Committee also reviews measures taken for effective exercise of voting rights by shareholders, adherence The centralized web based Complaint Redressal System of SEBI i.e. to the service standards adopted by the listed entity in respect of SCORES is used in the Company. Through SCORES, Bondholders can various services being rendered by the Registrar & Share Transfer register their complaints against the Company for redressal. Status of Agent and measures and initiatives taken by the listed entity. every complaint lodged can also be viewed online. SEBI disposes off the complaints if it is satisfied that the complaints have been redressed 3.3.1. Composition of Stakeholder Relationship Committee adequately. As on 31st March, 2022 the Stakeholder Relationship Committee 3.3.4. Investor Grievances comprised of the following members: To resolve the investor grievances, your company has registered itself S.No. Name of the Members Designation in SEBI web based complaints redressal system namely SCORES (SEBI 1. Dr. Jayaprakash Naik B., Chairperson Complaints Redressal System). During the financial year ended on Independent Director 31st March 2022, Company has not received any investors grievances. 2. Shri A.K. Gautam, Member 3.4. Risk Management Committee Nominee Director, NTPC Ltd. 3. Shri J. Behera, Director (Finance) Member Pursuant to Regulation 21 of the SEBI (LODR), Risk Management Committee has been constituted to: 79 • Finalise risk assessment including cyber security under the Risk Sustainability Policy to the Board along with the amount of expenditure Management to be incurred on the activities specified in the CSR & Sustainability Policy and monitors the CSR & Sustainability Policy of the Company • Framework; Monitor and review risk management plan/ framework apart from looking into such matter as the Board may delegate from as approved by the Board; time to time. THDCIL’s Policy on CSR & Sustainability Policy can be • Informing the Board about the risk assessed and action required viewed at the web link: https://thdc.co.in/sites/default/files/CSR_ to be taken/ already taken for mitigating the risks and Policy2021.pdf. • Take up any other matter as directed by the Board from time to 3.5.1. Composition of CSR & Sustainability Committee time. As per Section 135 of the Companies Act Corporate Social 3.4.1. Composition of Risk Management Committee Responsibility Committee of the Board shall be consisting of three or more Directors, out of which at least one Director shall be Independent As on 31st March, 2022 the Risk Management Committee comprised Director. As on 31st March, 2022, the CSR & Sustainability Committee of the following members: comprised of the following members: S. No. Name of the Members Designation S. No. Name of the Members Designation 1. Shri U.K. Bhattacharya, Chairperson a) Dr. Jayaprakash Naik B., Chairperson Nominee Director, NTPC Ltd. Independent Director 2. Shri J. Behera, Director (Finance) Member b) Shri U.K. Bhattacharya, Member Nominee Director, NTPC Ltd. 3. Smt. Sajal Jha, Independent Director Member c) Shri Jithesh John, Member 3.5. CSR & SUSTAINABILITY COMMITTEE Nominee Director, MoP , GoI The CSR & Sustainability Committee has been constituted as per the 3.5.2. Meeting and Attendance requirements of Section135 of the Companies Act, 2013 and DPE guidelines on sustainability (SD). CSR & Sustainability Committee During the financial year 2021-22, one (1) meeting of CSR & formulates and recommends the Corporate Social Responsibility & Sustainability Committee was held. Details of the meeting including the attendance of the committee are as follows: Name of Member Meeting Date Total Meetings held No. of Meetings % of Attendance 31-03-2022 during the tenure Attended Dr. Jayaprakash Naik B. 1 1 1 100% Shri Jithesh John 1 1 1 100% Shri U.K. Bhattacharya 1 1 1 100% 3.5.3. Functions of CSR & Sustainability Committee The constitution and the roles and responsibilities of the Board Level Standing Committee are given below: The Board Level CSR & Sustainability Committee steers the Implementation and Monitoring of the CSR & Sustainability Programs/ 3.6.1. Constitution of Standing Committee Activities of the Company, which include the following: As on 31st March, 2022, the Standing Committee comprised of the • Consideration of CSR & Sustainability Projects / Activities and following members: Annual Plan/Budget. S. No. Name of the Members • Consideration of Periodical CSR & Sustainability Progress Report / Status Report. 1. Shri J. Behera, Director (Finance) 2. Shri U.K. Bhattacharya, NTPC Nominee Director • Monitoring of CSR & Sustainability Activities. 3. Shri Jithesh John, GoI Nominee Director • Consideration of Impact Assessment Report of CSR & Sustainability Projects. The Company Secretary acts as the Secretary of the Board Level Standing Committee. • Any other tasks deemed necessary etc. 3.6.2. Roles and Responsibilities of the Committee 3.6. STANDING COMMITTEE The roles and responsibilities of the Standing Committee are as follows: In line with MoP order No. 11/51/2021-NHPC dated 20.10.2021, a Standing Committee was constituted for ensuring compliance of the a) Review the national level missions from time to time and rules and regulations of Government of India along with the directions government directions in respect of same and what can be done and guidelines issued expressing the priorities of the Government. to contribute towards them as a PSU. b) Ensuring the compliance of the rules and regulations of the Government of India along with the directions and guidelines 80 c) To review the half yearly compliance report and give Suggestions/ Directions for implementation of national missions. d) To look into issues like compliance with Make in India norms, GeM related directions and directives related to various national Missions like Swachh Bharat Mission etc. 4. GENERAL BODY MEETINGS 4.1 Annual General Meeting Date, time and location where the last three Annual General Meetings along with details of Special Resolutions passed are as under: Annual General 33rd Annual General Meeting held on 32nd Annual General Meeting 31st Annual General Meeting Meetings 15th September, 2021 held on 22nd September, 2020 held on 27th September, 2019 Time 3:00 P.M 12:00 Noon 6:00 P.M Venue THDCIL, NCR Office, Plot No. 20, Through Video Conferencing THDC INDIA LIMITED, Sector-14, Kaushambi, Ghaziabad – 1st Floor, East Tower, NBCC 201010 (U.P), Place, Bhishma Pitamah Marg, New Delhi Special Business • To ratify the remuneration of the Cost • To fix Remuneration of Cost • To fix Remuneration of Cost Auditors for the financial year 2021-22. Auditors for the F.Y. 2020-21. Auditors for the F.Y. 2019-20. • To approve the issue of Corporate Bonds • To issue secured, Non- • To issue secured, up to ` 3000 Crore on Private Placement Convertible, Non-Cumulative Non-Convertible, Basis Bonds on Private Placement Non-Cumulative Bonds on Basis. Private Placement Basis. 4.2. Special Resolution passed through Postal Ballot d) WHISTLE BLOWER POLICY No special resolution was passed during last year through postal ballot. The Company has a Board approved ‘Whistle Blower Policy’ for Directors There is no immediate proposal for passing any special resolution and employees which enables Directors/ Employees of THDCIL and/ or through Postal Ballot. its subsidiaries to raise concerns regarding unethical behavior, actual or suspected fraud or violation of the Company’s code of conduct 5. DISCLOSURES or ethics policy, which could affect the business or reputation of the Company. The complaint can be made to the Competent Authority in a) SUBSIDIARY COMPANIES the manner prescribed under the Policy. It also provides safeguards TUSCO Limited, a joint venture company of THDCIL and UPNEDA is against victimization of employees, who avail the mechanism and for incorporated on 12.09.2020 to develop, operate and maintain Ultra Mega direct access to the Chairman of the Audit Committee. The mechanism Solar Power Park(s)/Projects in the State of Uttar Pradesh under Solar for prevention of frauds is also included in the policy. Park Scheme of Ministry of New and Renewable Energy, Government • It provides necessary safeguards for protection of employees of India. The equity shareholding in Joint Venture Company is shared from victimization, for whistle blowing in good faith. between THDCIL and UPNEDA in the ratio of 74:26 respectively. The Minutes of Board Meetings of Subsidiary Company are placed before • An employee who knowingly makes false allegations shall be the Board of Directors of the Company for information. subject to Disciplinary Action. b) SECRETARIAL AUDIT • Facilitate highest possible standards of ethical, moral and legal business conduct in the Company. M/s PSR Murthy, Practicing Company Secretary, New Delhi has conducted Secretarial Audit for the Financial Year 2021-22 and The Company has a defined and established Whistle Blower Policy has submitted their report to the Company. A copy of Secretarial (Vigil Mechanism) for reporting instances of unethical/improper Audit Report is annexed in this Annual Report for information of the conduct and for taking suitable steps to investigate and correct the shareholders. same. The whistle blower policy is available on the Company’s website at https://thdc.co.in/sites/default/files/WhistleBlowerPolicyNew.pdf c) Disclosure under the Sexual Harassment of Women The provisions of this policy are in line with the provisions of section at Workplace (Prevention, Prohibition and Redressal) 177(9) of the Companies Act, 2013 and Regulation 22 of SEBI (LODR), Act, 2013: 2015. No. of No. of cases No. of cases No. of During the year 2021-22, no complaint has been reported under cases under reported disposed-off cases under Whistle Blower Policy. process/ during the during the process/ investigation year 2021-22 2021-22 investigation as on end as on end of of the year the 2021-22 2020-21 0 1 1 0 81 e) SEBI (LISTING OBLIGATIONS AND DISCLOSURE 8. MEANS OF COMMUNICATION REQUIREMENTS) REGULATIONS, 2015 AND DPE GUIDELINES ON CORPORATE GOVERNANCE The Company recognizes the rights of shareholders/investors & communications as key elements of the overall Corporate Governance The Company has broadly complied with the requirements of the framework and therefore emphasizes on continuous, efficient and SEBI (Listing Obligations and Disclosure Requirements) Regulations, relevant communication with shareholders and other stakeholders. 2015 & Guidelines on Corporate Governance for Central Public Sector The Company communicates with its shareholders through its Annual Enterprises issued by Department of Public Enterprises. There were no Reports, General Meetings and disclosures on its website and through penalties or strictures imposed on the Company by Stock Exchange(s) Stock Exchanges. All important information pertaining to the Company or the Board or any statutory authority for non-compliance during the is also mentioned in the Annual Report for each financial year, which last three years. is circulated to the members and others entitled thereto. Investor’s related information, announcements and latest updates regarding the f) ACCOUNTING TREATMENT Company can be accessed at Company’s website at www.thdc.co.in In the view of management, all applicable accounting standards are which inter-alia includes the following: being followed for preparation of Financial Statements. – Corporate Disclosures made from time to time to the Stock g) RELATED PARTY TRANSACTIONs Exchanges The Company has formulated a Related Party Transaction (RPT) – Financial Results Policy containing criterion of deciding Materiality of Related Party – Official news releases, presentations made to institutional Transactions and dealing with Related Party Transactions. The RPT investors or to the analysts Policy is available at the web link: https://thdc.co.in/sites/default/files/ Policy_10Jun22.pdf. The details of Related Party Transactions are – Bondholder information given in form AOC-2 forming part of Board’s Report. – Quarterly Corporate Governance Report h) MATERIAL SUBSIDIARY The extracts of quarterly Financial Results of the Company are The Company had no ‘Material Subsidiary’ as defined under Regulation communicated to the Stock Exchanges and published in national daily 16(1)(c) of SEBI (LODR). newspapers. The Company also makes press releases and corporate presentations on important corporate developments, from time to time 6. RISK MANAGEMENT and the same are also displayed on its website at www.thdc.co.in. During 2021-22, Quarterly Results have been published as per details The Company has adopted ‘Risk Management Manual’ in June, 2012. given below: The Manual intends to maintain a uniform & structured Risk Management System in the Company at various Power Projects at different stages of implementation. As per the Manual, the Risk Management Committee Quarter Date of Publication Newspaper comprising of members from Project, Finance, Planning, and Design II 26.10.2021 The Indian Express etc. was constituted to develop and implement a ‘Risk Management III 16.02.2022 The Indian Express Plan’. Committee meetings are being held regularly with suggestions to improve the effectiveness of Risk Management Plan. IV 15.05.2022 The Indian Express In line with the Manual, risk management plan is being implemented. No publication was made for the quarter ended June 2021 since the Each Project has opened a Risk Register and nominated their Nodal Risk requirement of publication of quarterly financial results came into effect Officer for coordinating activities as mentioned in Risk Management from 07.09.2021. Plan & ‘Risk Management Manual’. In case of occurrence of any risk the same is being recorded in ‘Risk Experience Register’ and action 9. COMPTROLLER AND AUDITOR GENERAL OF INDIA is being taken to mitigate it for future. The Risk Management of the Your Company being a PSU comes under jurisdiction of Comptroller Company is being reviewed periodically by the management. Board and Auditor General of India and is also subject to parliamentary also reviews the Risk Management on a regular basis. oversight under Section 139 of Companies Act, 2013. 7. RECORD MANAGEMENT SYSTEM The Statutory Auditors of the Company are appointed by the Comptroller and Auditor General of India, who gives the directions to the Auditors THDC has adopted Record Management Manual in line with guidelines on the manner in which the audit should be conducted by them. of National Archives of India. Chief Record Officer has been appointed The Comptroller and Auditor General of India are also empowered to to oversee the Record Management System of the Company. Separate Comment upon the Audit Reports of the Statutory Auditors. In addition, Record Office has been created in Rishikesh with all required facilities the Comptroller and Auditor General of India conduct a test audit of the as per the Guidelines of National Archives of India. accounts of your Company and submit reports. The Audited Accounts of the Company are placed before both the Houses of Parliament within a prescribed time limit. 82 10. CORPORATE ETHICS POLICY compliance with the Code of Conduct for the year under review. A declaration signed by Chairman & Managing Director is given below: The Board of Directors of your Company has adopted ‘Corporate Ethics Policy’ as a part of Corporate Governance initiative. The Policy Declaration as required under clause 3.4.2 of DPE Guidelines serves to guide the Employees of the Company to observe highest standard of Professional Ethics, Good Governance, Probity, Integrity ‘All the members of the Board have affirmed the compliance of the and Impartiality while discharging official duties. Code of Conduct for the Financial Year ended on March 31, 2022.’ 11. CODE OF CONDUCT FOR BOARD MEMBERS AND (R.K. Vishnoi) Chairman & Managing Director SENIOR MANAGEMENT The Company is committed towards conducting business in 12. CERTIFICATE ON CORPORATE GOVERNANCE accordance with the highest standards of business ethics and complying with applicable laws, rules and regulations. The Company The Certificate on Corporate Governance has been obtained from has placed Code of Conduct for Directors and Senior Management practicing Company Secretary as per DPE Guidelines which forms part Personnel with a view to enhance ethical and transparent process in of this report. managing the affairs of the Board Members including Govt. Nominee(s) & Independent Directors and Senior Management Personnel of the 13. CEO/CFO CERTIFICATION Company. The Board of Directors has laid down Code of Conduct As required under Regulation 17(8) of SEBI (LODR), the certificate duly & Ethics for Board Members and Senior Management in alignment signed by Chairman & Managing Director and Director (Finance) is with Company’s mission and objectives to enhance transparency in annexed to the Corporate Governance Report . managing the affairs of the Company. A copy of the Code of Conduct is available at the website of the Company at the https://thdc.co.in/sites/ 14. INFORMATION FOR INVESTORS default/files/CodeBusinessConduct&Ethics.pdf. 14.1. LISTING ON STOCK EXCHANGES Annual Affirmation is obtained regarding Compliance of Code of Business Conduct and Ethics from Board Members and Senior THDC INDIA LIMITED Corporate Bonds are listed on the following stock Management of the Company up to the level of AGM. All members of exchanges: the Board and Senior Management i.e. ‘Key Executives’ have confirmed BSE Limited NSE Limited Address: Phiroze Jeejeebhoy Towers, Address: Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Mumbai – 400001 Bandra (East), Mumbai – 400051 Credit Rating CORPORATE BONDS SERIES ISIN CREDIT RATING Corporate Bonds Series-I INE812V07013 India ratings: AA stable Care Ratings Limited .:AA stable Corporate Bonds Series-II INE812V07021 India Ratings: AA stable ICRA: AA stable Corporate Bonds Series-III INE812V07039 Care Ratings: AA stable ICRA: AA stable Corporate Bonds Series-IV INE812V07047 ICRA:AA stable Care Ratings Limited: AA stable Corporate Bonds Series-V INE812V07054 India Ratings: AA stable Care Ratings Limited: AA stable Corporate Bonds Series-VI INE812V07062 India Ratings : AA stable Care Ratings Limited: AA stable 83 The annual listing fee for the Financial Year 2021-22 has been paid to 14.6. Number of Shares held by the Directors : both Stock Exchange before due date. Directors (As on 31.03.2022) No. of Shares 14.2. REGISTRAR AND TRANSFER AGENTS Shri R.K. Vishnoi NIL KFin Technologies Limited Shri J. Behera NIL Selenium Building, Tower-B, Plot No. 31 & 32, Financial District, Nanakramguda, Serilingampally, Shri A.K. Gautam* NIL Hyderabad, Rangareddi, Telangana India - 500 032. Shri U. K. Bhattacharya NIL Email: gopalkrishna.kvs@karvy.com Shri Jithesh John NIL 14.3. DEBENTURE TRUSTEE Smt. Sajal Jha NIL VISTRA ITCL (INDIA) LIMITED Dr. Jayaprakash Naik B. NIL 6th Floor, The IL&FS Financial Centre, Plot C-22, G-Block, Bandra Kurla Complex, Shri Kesridevsingh D. Jhala NIL Bandra East, Mumbai *Ceased to be Director on 31.05.2022 14.4. PAYMENT OF DIVIDEND: Year Total Amount Date of AGM in which dividend 15. ADDRESS FOR CORRESPONDENCE of Dividend was declared (in Crore) THDC INDIA LIMITED Ganga Bhawan, Pragatipuram, 2019-20 402.71 22 September 2020 nd Bypass Road, 2020-21 305.04 Interim Dividend Rishikesh-249201, 20th February, 2021 Uttarakhand 2020-21 190.84 Final Dividend The phone numbers and e-mail reference for communication are 15th September, 2021 given below: 2021-22 317.36 Interim Dividend 14th February, 2022 Company Secretary & Compliance Officer 2021-22 197.94 Final Dividend to be declared Name Ms. Rashmi Sharma in upcoming AGM on 20th Sept 2022. Office Contact Nos. 0135-2473403/2439309, Fax- 0135-2439442 14.5. SHAREHOLDING PATTERN: E-Mail rashmi@thdc.co.in S. No. Category Total Shares % To Equity For Public Grievances 1 NTPC Limited 27309406 74.496 Name Sh. Sandeep Singhal, CGM 2 Governor of U.P 9349401 25.504 (In-charge, NCR) 3 Other Nominee 10 - Director -Public Grievances, THDCIL shareholders Contact 0120-2816800-6900 Total 36658817 100 E-Mail ssinghal@thdc.co.in Shareholding NTPC Limited Governor of UP Nominee Shareholder 0% 25.504 74.496 84 Annex - I Skill/Competence matrix of Directors: S. No. Names of Directors Designation Technical Energy Power Sector Finance & Accounting Economics Human Resource Management Regulatory Framework& Law Management Environment Academics Research and Development 1. Sh. R. K. Vishnoi Chairman & Managing Director ü ü ü ü ü ü ü 2. Sh. J. Behera Director (Finance) ü ü ü ü 3. Sh. A.K. Gautam * NTPC Ltd. Nominee Director ü ü ü ü ü 4. Sh. U. K. Bhattacharya NTPC Ltd. Nominee Director ü ü ü ü ü ü 5. Sh. Jithesh John Nominee Director, GoI ü ü ü ü ü 6. Smt. Sajal Jha Independent Director ü ü 7. Dr. Jayaprakash Naik B. Independent Director ü ü 8. Shri Kesridevsingh D. Jhala Independent Director ü ü ü *Ceased to be Director w.e.f 31.05.2022 Annex - II Schedule of Compliance with Presidential Directives issued during the financial year 2021-22 and during last three years preceding the financial year 2021-22: Year Content of Presidential Directives Compliance 2018-19 Presidential Directive for Wage Revision Complied 2019-20 NIL NIL 2020-21 NIL NIL 2021-22 NIL NIL 85 Chief Executive Officer (CEO) & Chief Financial Officer (CFO) Certification To, The Board of Directors THDC India Limited a) We hereby certify that on the basis of the review of the financial statements and the cash flow statement for the financial year ended 31st March, 2022 and that to the best of our knowledge and belief: 1. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; and 2. these statements together present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations. b) We hereby certify that, to the best of our knowledge and belief, no transactions entered into by the Company during the financial year ended 31st March, 2022 are fraudulent, illegal or violative of the Company’s Code of Conduct. c) We accept responsibility for establishing and maintaining internal controls for financial reporting and have evaluated the effectiveness of internal control systems pertaining to financial reporting and have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of such internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. d) We have indicated to the Auditors and the Audit Committee: i. Significant changes, in internal control over financial year ended 31st March, 2022; ii. Significant changes, in accounting policies during the financial year ended 31st March, 2022 and that the same have been disclosed in the notes to the financial statements; and iii. Instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company’s internal control system over financial reporting. Sd/- Sd/- (J. Behera) (R.K. Vishnoi) Director (Finance) Chairman & Managing Director Date: 15.09.2022 Place: Rishikesh 86 CORPORATE GOVERNANCE CERTIFICATE FOR 2021-22 To, The Members, THDC India Limited Tehri – 249 001 THDC India Limited (the “company”) CIN.U45203UR1988GOI009822 is a Government Company. The equity of the Company is held by NTPC Limited to the extent of 74.496% and by Government of Uttar Pradesh to the extent of 25.504%. Therefore, the Company is a Subsidiary Company of NTPC Limited. The Company is a Debt-listed Company. I have examined the compliance conditions of Corporate Governance by THDC India Limited for the Financial Year 2021-22 in accordance with the provisions of the Companies Act 2013 and Guidelines issued by the Department of Public Enterprises for Central Public Sector Undertakings in May 2010. 1. The compliance of conditions of Corporate Governance is the responsibility of the Management. My examination was limited to procedures and implementations thereof, adopted by the company for ensuring the compliance of the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial statement of the Company. 2. In my opinion and to the best of my information and according to the explanations and assurance given to me, I certify that the Company generally complied with the conditions of Corporate Governance excepting the following: a) The Board of the Company does not have optimum combination of Functional, Nominee and Independent Directors as per DPE Guidelines. b) As per the Articles of Association, the powers to appoint a Director vests with the Government of India. The Government of India appointed two Independent Directors including woman Director on 10th November 2021 and one Independent Director on 28th March 2022. c) During the Financial Year 2021-22, Audit Committee was reconstituted on 23.12.2021 after the appointment of Independent Directors. Thereafter, one Audit Committee was held in Quarter ended March, 2022. d) As a result of formation of Audit Committee on 23.12.2021, the financial statements of the subsidiary company for the quarter and nine months ended December, 2021 and for the year ended March, 2022 was reviewed by the Audit Committee in its meeting held on 14.02.2022 and 13.05.2022 respectively in the form of consolidated Financial Statements. 3. I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or the effectiveness with which the management has conducted the affairs of the Company. Sd/- (P.S.R. Murthy) PR No.1134/2021 UDIN A005880D000517050 Place: New Delhi Dated: 22nd June 2022 87 Annexure-II to the Directors’ Report CORPORATE SOCIAL RESPONSIBILITY REPORT As a socially responsible organization, THDCIL started its CSR journey departments. Independent outside Experts in the field of prior to DPE Guidelines in the year 2008 with philanthropic activities like CSR, Sustainable development and others areas are also distribution of Sweaters, items of community utility such as utensils, members of the BBLC. chairs and tents etc. in Tehri Project affected villages. Gradually, it B. PLANNING took structured shape with learning by experience and subsequent CSR related guidelines and charitable activities turned into sustainable Resources : livelihood activities to make villagers self sustained in a long run. Now, At least 2% of the average net profit of the Company made THDCIL has a well structured system for implementation of its CSR during the three immediate preceding financial years is Programmes. THDCIL has always adopted CSR programs on holistic spent in pursuance of its CSR & Sustainability Policy 2021. development approach than addressing the needs of the stakeholders in The Budget and Annual CSR and Sustainability Plan is piecemeal by implementing long term Holistic Development Programme approved by the Board on the recommendation of the CSR & involving activities for Ecological Restoration and Socio-Economic Sustainability Committee. Empowerment of Rural Communities for Sustainable Livelihood. All the CSR interventions were made considering all three spheres i.e. social, Selection of CSR Programmes : economic and environment development and sustainable change in the Selection of CSR programmes is related to the activities as lives of targeted communities. specified in Schedule VII of the Companies Act , 2013. THDCIL 1. Brief outline of the Company’s CSR and Sustainability CSR initiatives are titled ‘THDC Sahridaya’ (Corporate with a Policy Human heart). Focus areas where THDCIL undertakes CSR programmes is titled by the objective they seek to achieve as The Company has its own Board approved ‘CSR and Sustainability under: Policy-2021’ in place in compliance of Section 135 (1) of the Companies Act-2013, subsequent CSR rules and guidelines • THDC Niramaya (Health) - Nutrition, Health and Sanitation issued by Ministry of Corporate Affairs/DPE. and Drinking Water projects A. INSTITUTIONAL MECHANISM: • THDC Jagriti (Initiatives for a Bright future) – Education initiatives Board Level CSR & Sustainability Committee: • THDC Daksh (Skill) - Livelihood Generation and Skill In compliance of Section 135 (1) of the Companies Act, development initiatives 2013, a three member Board Level CSR & Sustainability Committee (BLC) is in place under the chairmanship of • THDC Utthan (Progress)- Rural Development an Independent Director. Other members are one NTPC • THDC Samarth (Empowerment)- Empowerment initiatives Ltd. Nominee Director and one Govt. Nominee Director. Company Secretary is Secretary to the CSR & Sustainability • THDC Saksham (Capable) - Care of the aged and differently- Committee. abled The CSR & Sustainability Committee acts as per the roles & • THDC Prakriti (Environment) - Environment protection responsibilities defined in the Companies Act/ new guidelines initiatives issued by GoI and meets regularly to review the progress of • THDC Virasat (Culture) – Art & Culture protection & CSR works & to discuss the related issues. promotion initiatives. Below Board Level Committee: • THDC Krida (Sports) – Sports promotion initiatives. An officer, heading the CSR and Sustainability functions at Selection of location and beneficiaries : Corporate Office shall be the designated Nodal Officer and is head of the Below Board Level Committee (BBLC). The Preference of CSR and Sustainability projects is given other members of the BBLC are from various functional to the local area. The local area is defined in the CSR & Sustainability Policy 2021 as below: Sr. No. Category Local Area a. Establishment & Offices Area within the radius of 10 Km. b. Hydro Projects All the development blocks being touched by the project components. c. Thermal Projects Area within the radius of 50 Km. d. Wind / Solar Projects Area within the radius of 10 Km. e. Resettled / Rehabilitated Sites Geographical boundaries of such sites f. Coal Mines All the development blocks being touched by Coal Mines / Sites including appurtenant works. 88 C. IMPLEMENTATION : i. Monthly Progress Report The CSR and Sustainability programs are mainly implemented ii. Quarterly Progress Report through SEWA-THDC and THDC Education Society (TES), the two Company sponsored / established registered Societies. iii. Video Conferencing a. SEWA-THDC : THDC INDIA LTD has formed a Company iv. Site Visits sponsored Non-Government Organization, “SEWA-THDC” v. Documentary evidence including photographs, films and under Society Registration Act, 1860 for the implementation videos of the CSR & Sustainable activities of the Company. SEWA- THDC has started working since 2009-10. Aims and vi. In–house monitoring mechanisms, as determined by the objectives of the society are charitable and non-profitable. CSR & Sustainability Committee. The Managing Committee has 07 members designated employees of THDCIL & nominated by THDCIL. CMD THDCIL E. REPORTING : is the ex- officio Patron of the society. The Annual Report includes report on CSR & Sustainability b. THDC Education Society (TES) : THDC started to impart containing particulars as specified in the Act/ Policy and education to the children of Project affected population as the same is displayed on the THDCIL’s website. Annual well as nearby marginalized and under privileged society in Sustainability Report is also published and displayed on district Tehri in the year 1992 through Education Management Company’s website. Board. It was renamed as THDC Education Society in the year 2010 on registration under Society Registration Act CSR Communication Strategy: THDCIL has a Board 1860. At present, the society is running two schools under approved CSR communication strategy in place for regular the auspices of TES-one at Bhagirathipuram, Tehri offering dialogue and communication with stakeholder regarding education from 6th to 12th standards and another school at the selection and implementation of CSR and sustainability Pragatipuram, Rishikesh offering education from 1st to 10th activities. standards. F. IMPACT ASSESSMENT : D. MONITORING : As per CSR & Sustainability Policy 2021, Impact To ensure transparency and effective implementation of the assessment, within one year, of all the completed CSR & CSR programs undertaken, a robust monitoring mechanism Sustainability projects having outlays of one crore rupees is instituted by the Company using the following indicative or more will be done through an independent agency. The medium: impact assessment reports shall be placed before the Board and shall be annexed to the annual report on CSR. 2. Composition of CSR & Sustainability Committee: Sl. No. Name of Director Designation / Nature of Directorship Number of meetings of CSR & Number of meetings of CSR Sustainability Committee held Committee attended during during the year the year 1. Dr. Jaya Prakash Naik B. Chairperson / Independent Director 01 01 2. Sh. U.K. Bhattacharya Member / Nominee Director, NTPC Ltd. 01 01 3. Sh. Jithesh John Member / Nominee Director, MoP, GoI 01 01 Company Secretary is Secretary to the CSR & Sustainability Committee. 3. Provide the web-link where Composition of CSR & Sustainability committee, CSR Policy and CSR projects approved by the Board are disclosed on the website of the Company. Board CSR & Sustainability Committee: https://thdc.co.in/content/board-level-committeesblcs CSR Policy: https://thdc.co.in/sites/default/files/CSR_Policy2021.pdf Approved CSR Projects: https://thdc.co.in/csr/approved-project 89 4. Provide the details of Impact assessment of CSR projects carried out in pursuance of sub-rule (3) of rule 8 of the Companies (Corporate Social Responsibility Policy) Rules, 2014, if applicable (attach the report). In compliance to the Govt. Guidelines/Rules and THDC CSR & Sustainability Policy 2021, process for impact assessment of CSR Projects with budget outlay of ` 1.00 Cr. or more and completed in F.Y. 2021-22, has been initiated. The impact assessment of CSR projects / activities completed in F.Y. 2019-20 was conducted by the third party i.e. Department of Sociology & Social Work, HNB Garhwal University, Srinagar in the F.Y. 2021-22 & 2022-23. 5. Details of the amount available for set off in pursuance of sub-rule (3) of rule 7 of the Companies (Corporate Social Responsibility Policy) Rules, 2014 and amount required for set off for the financial year, if any NOT APPLICABLE 6. Average net profit of the company as per section 135 (5). : ` 1311.66 Cr. 7. (a) Two percent of average net profit of the Company as per section 135(5) : ` 26.23 Cr. (b) Surplus arising out of the CSR projects or programmes or activities of the previous financial years.: NIL (c) Amount required to be set off for the financial year, if any: NIL (d) Total CSR obligation for the financial year (7a+7b-7c).: ` 26.23 Cr. 8. (a) CSR amount spent or unspent for the financial year 2021-22: Total Amount Spent Amount Unspent (in `) for the Financial Year Total Amount transferred to Amount transferred to any fund specified Unspent CSR Account as per section under Schedule VII as per second proviso to section 135(5) Amount Date of transfer Name of the Fund Amount Date of transfer ` 2720.55 Lakh NIL Not Applicable Not Applicable NIL Not Applicable (b) Details of CSR amount spent against ongoing projects for the financial year: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) Sl. Name Item Local Location of the Project Amount Amount Amount Mode of Mode of No. of the from the area project duration allocated spent transferred to Implementation Implementation - Project list of (Yes/ for the in the Unspent CSR - Through activities No) project current Account for Direct Implementing in (in `) financial the project as (Yes/No) Agency Schedule Year per Section State District Name CSR VII to the (in `) 135(6) Registration Act (in `) number NIL 90 (c) Details of CSR amount spent against other than ongoing projects for the financial year: 1 2 3 4 5 6 7 8 Sl. Name of the Project Item from the list Local Location of the project. Amount Mode of Mode of implementation - No. of activities in area spent implementation Through implementing agency schedule VII to (Yes/ for the - Direct State District Name CSR registration the Act No) project (Yes/No) number (` In Lakh) 1 (i) Running of 01 Item Number (i) Yes Uttarakhand Tehri 49.11 No SEWA- CSR00016241 Allopathic Dispensary of Schedule VII THDC Uttarkashi 2.91 No & 05 no. Homeopathy of the Companies (Company Dispensaries Act, 2013 Dehradun 8.24 No Sponsored i.e. Registered (ii) Health interventions Eradicating Yes Uttarakhand Tehri 78.73 No Society) through medical camps Hunger, Poverty Haridwar 2.49 No / support for medical & Malnutrition, treatment etc. No Uttar Bijnor 3.93 No Promoting health Pradesh care including (iii) Support towards preventive health Yes Uttarakhand Tehri 52.82 No Medical Equipment’s Care & Sanitation Dehradun 17.15 No and making available Safe Haridwar 10.81 No Drinking Water. No Uttarakhand Pauri 20.72 No Garhwal Yes Madhya Singrauli 4.96 No Pradesh (iv) Cold Chain No Uttarakhand All 95.53 No Equipment’s for Uttarakhand COVID-19 Vaccination Programmes for Govt. of Uttarakhand (v) Contribution towards No Uttarakhand All 50.00 No Uttarakhand State Uttarakhand Disaster Management Fund to support State Govt. Relief & Rehabilitation Measure (vi) Infrastructure support Yes Uttarakhand Tehri 24.56 No to Distt. Authorities and Dehradun 6.54 No welfare agencies for public services. Haridwar 1.99 No Yes Madhya Amelia 2.35 No Pradesh (vii) Distribution of Mask, Yes Uttarakhand Tehri 34.76 No Sanitizer, Food items etc. Dehradun 21.65 No under COVID-19 Yes Madhya Amelia 8.04 No Pradesh 91 (viii) Drinking Water Yes Uttarakhand Tehri 11.94 No Facility & Water Supply scheme/ water tanker etc. (ix) Deployment of “For- Yes Uttarakhand Tehri 21.33 No ever” drinking water- Meghdoot-Atmospheric Water Generation (AWG) (xi) Swachhta Action Plan Yes Uttarakhand Tehri 14.11 No and Swachhta Pakhwaras Uttarkashi 18.03 No Dehradun 27.93 No Haridwar 14.47 No No Uttar Mau 7.75 No Pradesh 2 (i) Short term skill Item Number (ii) Yes Uttarakhand Tehri 6.90 No SEWA- CSR00016241 training like Computer of Schedule VII THDC Dehradun 2.91 No training etc. of the Companies (Company Act, 2013 Sponsored (ii) Long term skill Yes Uttarakhand Tehri 66.16 No i.e. Registered training like GNM/ Dehradun 109.10 No Society) ANM/ITI/Diploma etc. Promoting Yes Madhya Amelia 4.00 No & support towards Education, Pradesh professional courses. including special (iii) Development of education and Yes Uttarakhand Tehri 33.48 No infrastructure by new Employment Uttarkashi 7.45 No construction / repair in Enhancing educational institution/ vocation Skills Dehradun 25.71 No schools especially among Haridwar 25.05 No Children, Women, Elderly, and the No Uttar Chitrakoot 8.92 No Differently Abled Pradesh (iv) Strengthening and Livelihood Yes Uttarakhand Tehri 11.82 No of infrastructure by Enhancement Projects Dehradun 3.65 No extending, lab equipment, books, library material, DG Sets, fans and other utilities/Computer sets etc. (v) Running of 3 Schools Yes Uttarakhand Tehri 205.43 No to support children of poor society by providing uniform/books/ etc. Dehradun 301.77 No (vi) Livelihood promotion Yes Uttarakhand Tehri 156.51 No / Income generation/ Uttarkashi 0.50 No Agriculture intervention/ training program through Dehradun 20.21 No NGOs/ Govt. Institution Haridwar 19.64 No including Convergence programs. 92 3 (i) Women specific Item Number (iii) Yes Uttarakhand Tehri 5.84 No SEWA- CSR00016241 skill program such of Schedule VII THDC Dehradun 4.04 No as tailoring/Jute / of the Companies (Company Beautician/ other women Act, 2013 Sponsored empowerment program. i.e. Registered Society) Promoting Gender Equality, Empowering women, Setting up Homes & Haridwar 0.90 No (ii) Support for studies/ Hostels for Yes Uttarakhand Tehri 14.30 No income generation Women & activities/ Infrastructure Orphans, Setting Works for Orphans girls/ up Old Age POCSO victims. Homes, Day Care centres and Such other facilities for Senior Citizens and Measures for reducing Inequalities faced by specially and Economically Backward groups. 4 (i) Promotion and Item Number (iv) Yes Uttarakhand Dehradun 5.09 No SEWA- CSR00016241 protection of plantation of Schedule VII THDC of the Companies (Company (ii) Promotion of Yes Uttarakhand Tehri 5.92 No Act, 2013 i.e. Sponsored alternative /effective / Dehradun 2.65 No Registered clean energy projects. Ensuring Haridwar 4.54 No Society) Environmental (iii) Awareness & Nukkad Sustainability, No Uttarakhand Haridwar 5.44 No Natak Program on PM- Ecological No Uttarakhand Udham 2.13 No Kusum Yojana balance, Singh Nagar Protection of (iv) Establishment of Flora & Fauna, No Uttarakhand Haridwar 92.54 No Electric Vehicle Charging Animal Welfare, Yes Uttarakhand Dehradun 15.00 No Stations Agro forestry, (iv) Animal Welfare (Kanji Conservation No Uttarakhand Udham 35.29 No House) of Natural Singh Nagar Resources and Maintaining Quality of Soil, Air & Water “including contribution to the Clean Ganga Fund setup by the Central Government for rejuvenation of river Ganga”. 93 5 (i) Support for promoting Item Number (v) Yes Uttarakhand Tehri 17.46 No SEWA- CSR00016241 cultural heritage etc. of Schedule VII Dehradun No THDC of the Companies (Company (ii) Strengthening of Act, 2013 i.e. Yes Uttarakhand Dehradun 63.75 No Sponsored lighting arrangements & Registered highlighting important Protection Society) structures with Façade/ of National decorative lights in Ganga Heritage, Art & Ghat area at Rishikesh. Culture including restoration of buildings & sites (iii) Organized “Azadi Ka of historical Yes Uttarakhand Tehri 2.66 No Amrut Mahotsav” importance and works of Dehradun No Art, Setting up No Tripura Tripura 2.00 No Public Libraries, (iv) Promotion of Promotion and Yes Uttarakhand Tehri 4.89 No traditional art and Development of handicrafts such as Traditional Arts & Ringal etc. Handicrafts (v) Construction and No Uttarakhand Chamoli 130.00 No re-development of Shri Badrinath Spiritual Smart hill town 6 Measures for the benefit Item Number (vi) No All India All India 10.00 No SEWA- CSR00016241 of armed forces veterans, of Schedule VII THDC war widows and their of the Companies (Company veterans Act, 2013 i.e. Sponsored Registered Measures for the Society) benefit of armed forces veterans, war widows and their veterans 7 (i) Distribution of sports Item Number (vii) Yes Uttarakhand Tehri 6.15 No SEWA- CSR00016241 kit/Sports activities of Schedule VII THDC Uttarkashi 1.28 No of the Companies (Company Act, 2013 i.e. Dehradun No Sponsored Yes Madhya Amelia 2.16 No Registered Training to Pradesh Society) promote Rural sports, Nationally Yes uttar Jhansi No Recognized Pradesh (ii) Infrastructure for Sports, Paralymic No Uttarakhand Pauri 22.83 No promotion of sports for Sports, Olympic Garhwal rural youth Sports 94 8 Contribution to centrally Item Number (viii) No All India All India 405.00 No SEWA- CSR00016241 recognized funds like PM of Schedule VII THDC CARES Fund. of the Companies (Company Act, 2013 i.e. Sponsored Registered Contribution to the Society) Prime Minister’s National Relief Fund or any other fund set up by the Central Government for Socio-Economic Development and Relief and Welfare of the Scheduled Castes, The Scheduled Tribes, Other Backward Classes, Minorities & Women 9 Infrastructure Item Number (x) Yes Uttarakhand Tehri 39.72 No SEWA- CSR00016241 construction/ repair of of Schedule VII THDC Dehradun 36.78 No community building/ of the Companies (Company Shamshan ghat/pathway Act, 2013 Haridwar 7.06 No Sponsored etc for rural development. Rural No Uttarakhand Pauri 5.00 No Registered Development Garhwal Society) Projects Yes Madhya Amelia 7.27 No Pradesh No Uttar Hapur 7.50 No Pradesh 10 (i) Contribution to Item Number (xi) No Uttarakhand Dehradun 48.79 No SEWA- CSR00016241 Uttarakhand Disaster of Schedule VII THDC Management Authority of the Companies (Company (USDMA) to fight against Act, 2013 Sponsored COVID-19 Disaster & Registered Calamity Society) (ii) Relief measures Protection work Yes Uttarakhand Tehri 10.36 No & support to Distt. Dehradun 0.20 No Admin w.r.t disaster and calamity Total 2646.60 95 (d) Amount spent in Administrative Overheads : ` 73.95 Lakh (e) Amount spent on Impact Assessment, if applicable : NIL (f) Total amount spent for the Financial Year (8b+8c+8d+8e) : ` 2720.55 Lakh (g) Excess amount for set off, if any. Sl. No. Particular Amount (i) Two percent of average net profit of the Company as per section 135(5) 2623.32 Lakh (ii) Total amount spent for the Financial Year 2720.55 Lakh (iii) Excess amount spent for the financial year [(ii)-(i)] 97.23 Lakh (iv) Surplus arising out of the CSR projects or programmes or activities of the previous financial years, if any NIL (v) Amount available for set off in succeeding financial years [(iii)-(iv)] 97.23 Lakh 9. (a) Details of Unspent CSR amount for the preceding three financial years: Sl. Preceding Amount transferred to Amount spent in the Amount transferred to any fund Amount remaining to No. Financial Unspent CSR Account reporting Financial specified under Schedule VII as per be spent in Year under section 135 (6) Year (in `) section 135(6), if any succeeding financial (in `) years. (in `) Name of Amount Date of the Fund (in `) Transfer NIL (b) Details of CSR amount spent in the financial year for ongoing projects of the preceding financial year(s): (1) (2) (3) (4) (5) (6) (7) (8) (9) Sl. Project Name of Financial Project Total amount Amount spent on Cumulative amount Status of the No. ID the Project Year in duration allocated for the project in the spent at the end of project - Completed which the the project reporting reporting Financial /Ongoing project was (in `) Financial Year Year (in `) commenced NIL 10. In case of creation or acquisition of capital asset, furnish the details relating to the asset so created or acquired through CSR spent in the financial year (asset-wise details). Sl. Date of Creation Amount of CSR Details of the entity or public Provide details of the capital asset (s) Created or No. or acquisition spent for Creation authority or beneficiary under acquired (including Complete address and location of of the Capital or acquisition of whose name such capital asset the capital assets) asset (s) the Capital is registered, their address etc. asset (s) 1 24.05.2021 9,550,000.00 District Hospitals of Govt. 100 no. ILR (Large) COVID-19 Vaccination Uttarakhand Govt. of U.K. 2 27.05.2021 748,000.00 CMO, Haridwar, Uttarakhand 01 no. Mortuary Van Chief Medical Officer,(CMO) Haridwar Uttarakhand. 3 03.07.2021 340,786.00 Vidhya Mandir Inter College 01 no. 25 KVA DG set Dhalwala, Tehri Smt. Pushpa Vadera Sarswati Vidhya Mandir Inter College, Dhalwala, Narendranagar, Tehri, Uttarakhand 96 Sl. Date of Creation Amount of CSR Details of the entity or public Provide details of the capital asset (S) Created or No. or acquisition spent for Creation authority or beneficiary under acquired (including Complete address and location of of the Capital or acquisition of whose name such capital asset the capital assets) asset (S) the Capital is registered, their address etc. asset (S) 4 14.07.2021 549,983.00 State Institute of Hotel 01 no. 62.5 KVA DG set Management Catering Technology State Institute of Hotel Management Catering Technology & Applied Nutrition, New Tehri & Applied Nutrition, New Tehri Uttarakhand Uttarakhand 5 18.07.2021 192,750.00 Headquarter Auditorium, Block 75 nos. Visiting Chairs Pratapnagar, Distt. Tehri, Headquarter Auditorium, Block Pratapnagar, Uttarakhand Distt. Tehri, Uttarakhand 6 10.09.2021 2,071,989.00 CHC Satpuli, Chaubattakhal Distt. 01 no. Colour Doppler Ultrasound Scanner Machine Pauri Garhwal, Uttarakhand Community Health Centre (CHC) Satpuli, Chaubattakhal Distt. Pauri Garhwal, Uttarakhand 7 21.09.2021 144,000.00 Tuberculosis Clinics at Civil 03 no. Binocular Microscope Hospital Tehri Distt. Tuberculosis Clinics, Civil Hospital New Tehri Block Chamba, Uttarakhand 8 18.10.2021 2,18,300.00 AIIMS, Rishikesh Distt. Dehradun 01 no. PRP Ultra - Next Generation Uttarakhand refrigerated Centrifuge AIIMS, Rishikesh Distt. Dehradun, Uttarakhand 9 18.10.2021 93,987.00 AIIMS, Rishikesh, Distt. 01 no. Gynae Chair Dehradun, Uttarakhand AIIMS, Rishikesh Distt. Dehradun, Uttarakhand 10 02.11.2021 270,000.00 Sh. Dhruv Charitable Trust 50 no. Hospital Beds Hospital, Haridwar, Uttarakhand Shri Dhurv Charitable Trust Hospital, Gram Sajanpur Pili, Thana Shyampur, Najibabad Road, Haridwar, Uttarakhand 11 01.12.2021 765,000.00 Nirmal Ashram Eye Institute (NEI) 01 no. Anaesthesia Machine Khairi-Kalan P.O. Satyanarayan Nirmal, Ashram Eye Institute (NEI) Khairi-Kalan P.O. Rishikesh Distt. Dehradun Satyanarayan Rishikesh Distt. Dehradun, Uttarakhand 12 06.12.2021 718,000.00 Various Location of Rishikesh, 237 nos. LED Street Light Tehri, Haridwar, Uttarakhand Various Location of Rishikesh, Pashulok, Khandgaon Raiwala, Nagar Nigam Rishikesh Haridwar, Adarsh Nagar Pathri Uttarakhand 13 16.12.2021 26,87,978.00 Sub Distt. Hospital Naren- 01 no. Mortuary Van, dranagar, Tehri Sub Distt. Hospital Narendranagar Tehri, Uttarakhand 14 16.12.2021 785,586.00 Sub Distt. Hospital Narendranagar 01 no. Ultrasound Machine, Tehri, Uttarakhand Sub Distt. Hospital Narendranagar Tehri, Uttarakhand 15 16.12.2021 492,060.00 Sub Distt. Hospital Narendranagar 01 no. Laundry Machine Tehri, Uttarakhand Sub Distt. Hospital Narendranagar Tehri, Uttarakhand 16 31.12.2021 299,250.00 150 Families of PAA in Block 150 Families of PAA in Block Thaouldhar, Jakhnidhar, Thaouldhar, Jakhnidhar, Bhilangana & Pratapnagar of Distt.Tehri Uttarakhand Bhilangana & Pratapnagar of Distt. Tehri Uttarakhand 17 31.12.2021 2,47,483.00 150 Families of PAA in Block 150 Families of PAA in Block Thaouldhar, Jakhnidhar, Thaouldhar, Jakhnidhar, Bhilangana & Pratapnagar of Distt.Tehri, Uttarakhand Bhilangana & Pratapnagar of Distt. Tehri, Uttarakhand 18 31.01.2022 8,607,479.00 SEWA-THDC, Rishikesh 01 no. Combo Charger (122-150) kW E-Charger Deen Dayal Uphadhya Parking, Distt. Haridwar, Uttarakhand 97 Sl. Date of Creation Amount of CSR Details of the entity or public Provide details of the capital asset (S) Created or No. or acquisition spent for Creation authority or beneficiary under acquired (including Complete address and location of the Capital or acquisition of whose name such capital asset of the capital assets) asset (S) the Capital is registered, their address etc. asset (S) SEWA-THDC, Rishikesh 01 no. Combo Charger (122-150) kW E-Charger Char Dham Registration Cum Transit Camp, Dist. Dehradun, Uttarakhand SEWA-THDC, Rishikesh 01 no. Combo Charger (122-150) kW E-Charger Dehradun Secretariat, Dist. Dehradun, Uttarakhand SEWA-THDC, Rishikesh 01 no. Combo Charger (122-150) kW E-Charger Kincraig, Dist. Dehradun, Uttarakhand 19 09.01.2022 422,000.00 Rajkiya Uchchatar Madhyamik 02 nos. School Toilet Vidhyaalya Kanpolkhal Block Rajkiya Uchchatar Madhyamik Vidhyalya Kanpolkhal Devprayag Distt. Tehri Garhwal, Block Devprayag Distt. Tehri Garhwal, Uttarakhand Uttarakhand 20 25.02.2022 133,000.00 Various School of PAA Distt. 05 no. Multimedia Projector (MMP) Tehri, Uttarakhand Various School of PAA Distt. Tehri, Uttarakhand 21 10.03.2022 240,000.00 Govt. Hospital Rishikesh, 08 nos. U.V. Base AIR Purifier Distt. Dehradun, Uttarakhand Govt. Hospital Rishikesh, Distt. Dehradun Uttarakhand 22 26.03.2022 400,000.00 Sarswati Shishu Mandir (Chham), 2 nos. School Toilet Kandisour, Block Thouldhar Distt. Sarswati Shishu Mandir (Chham), Kandisour, Block Tehri, Uttarakhand Thouldhar Distt. Tehri, Uttarakhand 22 29.03.2022 2,132,745.00 Various School of Distt. Tehri ‘For Ever’ drinking water-MEGHDOOT-AWG and Dehradun (1) 6 No. Meghdoot Classic 60 Ltr. Various School i.e. Goharmafi, THDC Education Society School Rishikesh, Pokhal, Gewali (Deval), Gadugad, Bharetidhar (Distt. Tehri and Dehradun) (2) 02 No. Meghdoot Classic 150 Ltr. at Tehsheeldar Office Gaja, Degree College Devparyag (Distt. Tehri and Dehradun) 23 31.03.2022 389,000.00 Saraswati Vidhya Mandir Inter 02 nos. School Toilet College Koti, Bhaniyawala Block Saraswati Vidhya Mandir Inter College Koti, Doiwala Distt. Dehradun, Bhaniyawala Block Doiwala, Distt. Dehradun Uttarakhand 24 31.03.2022 734,873.00 Nagar Nigam Rishikesh Distt. 01 no. Tractor Dehradun, Uttarakhand Nagar Nigam Rishikesh, Distt. Dehradun, Uttarakhand 11. Specify the reason(s), if the Company has failed to spend two percent of the average net profit as per section 135(5). NOT APPLICABLE Sd/- Sd/- Chairman & Managing Director (Chairman - CSR & Sustainability Committee) 98 CSR ACTIVITIES DURING F.Y. 2021-22 Skill Program organized under THDCIL Computer Skill Program organized under Corporate Social Responsibility program THDCIL Corporate Social Responsibility program THDCIL integrates its CSR and Sustainability planning with its business International. During the financial year, total 4239 villagers were plans and strategies. The activities are planned well in advance, targets benefited from the project. are fixed at different milestones, with pre-estimation of quantum of resources required within the allocated budget and having a definite Medical Health Infrastructure: To strengthen the public health time span for achieving desired outcomes. For effective implementation, services, support toward improvement in medical infrastructure was CSR and Sustainability plans are categorized into long-term, medium- provided by distribution of 01 Utrasound Machine, 01 Laundry Machine, term and short-term projects. 02 Mortuary Vans, 01 Anaesthesia Machine, 01 Colour Doppler Ultra sound Machine, 03 Binocular Microscopes, etc. to different health THDC NIRAMAYA - HEALTH & SANITATION INITIATIVES units / hospitals. In Uttarakhand, health system is mostly affected among villagers living Water & Sanitation initiatives: To support the Govt. of India mission in the hills due to long time in travel apart from limited available means. of better sanitation facilities & awareness toward hygiene, Swachhta Tehri distt. of Uttarakhand with a total area of 4421 sq. km, is so far Pakhwadas were organised at all units of the Company. Municipal major functional area of THDC. The lack of pathological, radiological Bodies of Rishikesh were supported through supply of Tractor for & expert facilities etc. also forces the public to travel distant cities to effective delivery of public services. To promote the Menstrual Hygiene get diagnosed and avail treatment, which in turn puts pressure on city Management among the adolescent girls and women 2700 nos. of health care facilities, infrastructure & patient kitty. Keeping in view of Sanitary pads were distributed at different locations. A pilot project this, THDCIL being a socially responsible organization, continuously in partnership with CSIR IICT, Hyderabad was also implemented by strives to come up with solutions and health services facilities through installation of Atmospheric Water Generation (AWG) Technology various health camps and awareness drive with reputed hospitals and enabled ‘Meghdoot’ Water Kiosk at different schools / locations. The institutions. Some major community-oriented efforts of THDC in the pilot project ensures clean drinking water for students & staff without area of health are: any dependency on ground water or surface water sources. Allopathic dispensary at Deengaon, Tehri: It is located in the remotest Initiatives in wake of COVID-19: THDC also support the State Govt. area of distt. Tehri and caters around 15000 population of surrounding and Central Govt. in their measures to control and mitigate the spread approx. 40 villages. The dispensary is equipped with all basic facilities of COVID-19 by providing financial assistance to Uttarakhand State including MBBS Doctor, Paramedical Staff, and basic pathological tests Disaster Management Authority for relief measures for COVID-19. like X-Ray, ECG, on call ambulance facility, minor OT & free medicine. In addition to this, THDC itself took initiatives in distribution of mask, Total OPD registered during the financial year were 5039 nos. sanitizers, pulse oximeters, digital thermometer and rations bags to community through Dist. Administration. Multi-speciality Medical Camps: Every year SEWA-THDC also conducts 10-15 multi-specialty medical camps in different districts THDC JAGRITI – EDUCATION INITIATIVES through THDC doctors posted at Tehri, Koteshwar projects, Rishikesh etc.. Total 24 Medical Camps were conducted during the F.Y. 2021-22 The Sustainable Development Goals (SDG) Number 4 i.e. ‘Ensure with 4841 OPDs. Total 235 beneficiaries were sponsored for successful Inclusive And Equitable Quality Education And Promote Lifelong cataract surgery and 322 denture changes. Learning Opportunities For All’ of United Nations 2030 agenda embraces this idea and envisages that by 2030, all girls and Homeopathic Dispensaries : Total 5 Homeopathy dispensary were boys complete free, equitable and quality primary and secondary operational during the financial year. education leading to relevant and effective learning outcomes. As a responsible power sector CPSU, for providing good education to the Mobile Health Van: THDC with the aim to provide comprehensive door children belonging to nearby villages and project affected area, THDC step health care facility to villagers of project affected area, runs two out of its Corporate Social Responsibility budget is running schools mobile health vans in partnership with AIIMS, Rishikesh and Rotary since 1992. Total 3 schools, one at Rishikesh and two in District Tehri 99 at Bhagirathipuram and Koteshwar are functional for providing quality development of society. The major activities implemented under the education to poor and needy students of the local area. These schools three long term projects were Awareness Programmes under “Swachh provide nearly free of cost education with additional support in form Bharat Abhiyan” for Cleanliness, distribution of Sanitary Napkins, Carrier of free uniforms, shoes, bags, books, stationary, sweater. Total 878 Counseling programs, Construction of Rain water harvesting tanks, children have benefited from the above 3 schools. Mushroom production training for livelihood generation, Establishment of Kissan Clubs, etc. In addition to above, for strengthening of educational infrastructure, THDC also supports various Govt. Schools and educational institutions THDC SAMARTH - WOMEN EMPOWERMENT INITIATIVES providing subsidized education by distribution of educational assets. During the financial year THDC under its CSR program has distributed 01 As an innovative pilot initiative, THDC established a Women Credit nos. 25 KVA DG Set & 5 Multimedia Projectors to different educational Cooperative Society in the remotest part of Distt. Tehri in the year 2016 institutes / Schools. with initial seed money of ` 10 Lakh for enabling hill women to meet their small credit needs w.r.t livelihood options of their own choice. The To promote digital literacy among the youths of project affected areas, society is solely managed by the women and is running successfully THDC regularly conducts computer training programs at different areas with initial handholding by THDC in terms of guidance in financial & of local area. During FY 2021-22, total 9 centers were operational and administrative matters, logistic help and rural based livelihood trainings 253 youths benefited from the program. through expert agencies. During the financial year, the society benefited 97 members. Further to empower & generate livelihood opportunity THDC DAKSH - SKILL DEVELOPMENT INITIATIVES for POCSO victims, orphan girls, survivor of domestic violence of Dist. Tehri, support had been granted to Dist. Administration in development Various vocational trainings such as Hotel Management, ANM, ITI, of PRIDE Café & Restaurant at Dist. Probation Office, Tehri Garhwal. Hospitality, Food Production, Fitter & Plumber, Welder, Electrical & In order to provide additional source of income, girls & women were Electronics, Excavator Operator, AC & Refrigeration etc. were provided also trained with tailoring / stitching & beautician skills through 11 skill to youths belonging to weaker sections since inception of CSR centres being facilitated during the Financial Year. initiatives. During the financial year total 110 youths were sponsored skill development courses like ANM, GNM, Hotel management, Diploma THDC PRAKRITI- ENVIRONMENT MANAGEMENT in Plastic Technology, Diploma in Professional Accounting, Diploma in computer application & post graduate diploma in computer application. Environement sustainaibility is one of the core dimensions of In addition to above, THDC has also supported apprenticeship program Sustainable Development Goals 2030 as out of total 244 indicators - 93 of 109 youths through CSR funds during the FY 2021-22. are environment related. To achieve Environmental Sustainability and to promote Ecological Balance under CSR thematic domain of Prakriti, THDC UTTHAN - RURAL DEVELOPMENT INITIATIVES following activities had been taken up with three objectives Soil & Water Conservation, Green Energy Generation & Technology Promotions Sustainable Development Goal No. 2 calls specifically to : ‘end and Environment Protection & Promotion. Environment has been core hunger, achieve food security and improve nutrition and promote consideration of THDCIL’s CSR, hence, under all the long term livelihood sustainable agriculture.’ THDCIL strives to come up with solutions CSR project of THDC Utthan theme, water conservation activities were for rural development and agriculture promotion activities through incorporated to promote community participation and link enhance various interventions like providing poly-houses, high yielding seeds, livelihood opportunity with conserved water resource. Major water vermin compost pits, LDEP tanks, drip irrigation, sprinklers, rain conserving assests developed were Water Harvesting Tanks (capacity water harvesting for irrigation, and tech. counselling by experts etc. 3000 litres each), LDPE (Low density polyethylene) tanks, chal khal, One of the major intervention of THDC during the financial year in were installed in the project affected villages for rain water harvesting. promotion of sustainable agriculture in villages of Dist. Tehri Garhwal, In addition to this to promote the use of Electric Vehicle & to protect the Uttarakhand viz, fragmentation of land holding, unaffordability of environment from CO2 emission, in line with the focused campaign of farm technology, a large presence of small & marginal farmers ; by Govt. of India, THDC took initiatives to develop 5 E-V Charging Units at promoting custom hiring centres / farm machinery banks to help different location of Dist. Haridwar & Dehradun. To discourage the use of easy farming, more produce, save time and check migration. Each forest fuel and promote healthy cooking environment, THDC distributed farm machinery bank is established in convergence mode with state 150 induction stove along with induction cookware sets to villagers agriculture / horticulture deptt. by sharing the cost of the equipment of project affected area of Dist. Tehri. In continuation to above efforts, between govt. funds and CSR funds along with certain contribution by THDC for the promotion of welfare of stray animals have supported the beneficiaries. These banks are being run by the local community in Dist. Administration of Udham Singh Nagar and Dehradun to establish SHG mode. During the FY total 34 Farm Machinery Banks were formed. and run Kanji House / Cattel Shed. To promote the Solar based irrigation In addition to above for holistic development of the project affected system in villages of Dist. Haridwar, Dehradun & Udham Singh Nagar, villages Shaheed Bhagat Singh Evening College under Delhi university mass awareness campaign was conducted in line with the Govt. of India was engaged to cover nearly 20 villages for endowing sustainable efforts to engage the stakeholders. livelihood opportunity to community, empowering women and overall 100 ANNEXURE-III to the Directors’ Report MANAGEMENT DISCUSSION AND ANALYSIS REPORT INDUSTRY ANALYSIS AND OUTLOOK GW of thermal, 151 GW of renewable (wind, solar, hydro and biomass) and 6.78 GW of nuclear power. India saw its peak electricity demand Electricity features as one of the essential and pioneering sources of surpass 200 GW in 2021. As per a study done by the Central Electricity energy in India. The country envisions to furnish affordable, suitable, Authority (CEA), our storage requirement by 2030 is forecast at 41 GW renewable, and sustainable sources of power for every citizen. In other and this aim is getting much-awaited attention in the country. words, the key objective of the power sector is to accomplish the parameters of a nation’s growth and development. It also emphasizes There is a paradigm change in our power system operations. In the the growing need for the Power Sector in India. past, fully-controllable power generation followed non-controllable load demand. Now with renewable energy (RE) sources, generation is no The power sector which is crucial to push growth and achieve the longer fully controllable. The variability of RE resources due to weather targets will become even more important in the coming years to facilitate fluctuations means uncertainty in generation output. This requires the economic recovery. Indian power sector will have to find solutions for adoption of grid-scale energy storage technologies to complement the problems like power cuts, financial losses, swift technological up- these sources. Pumped storage hydro (PSH) plants are highly useful gradation and cost cuts. The advent of state-of-the-art technologies has options for the integration of RE power with the power system. PSH empowered all sectors to realise their potentials while enhancing the plants are storage systems based on hydropower operations between comfort of the end consumers. two or more reservoirs (upper and lower) with an elevation difference. The power sector will have to upgrade itself with state-of-the-art At the time of demand, downward water flow generates electricity with technology to ensure decarbonisation, boost digitalisation, and a hydraulic turbine, and water is pumped back to the upper reservoir decentralisation. using power from grid or RE sources, with an overall efficiency of 75-80%. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing Pumped storage schemes use domestically produced material/ demand for electricity in the country, massive addition to the installed equipment and even the Electrical/ Mechanical parts are made in India, generating capacity is required. The Indian power sector is forecasted so PSH plants can serve the aims of Atmanirbhar Bharat. The Ministry to attract huge investments in coming years. of Power (MoP) has clarified that energy storage systems shall be an integral part of our power system under the Electricity Act, and that The power sector outlook for the year 2022 looks bright despite the setting up a standalone energy storage system in the form of PSH, COVID-19 disruptions. The sector is currently on the path to recovery shall not require a licence. At present, a conventional model approach with a steady improvement in power demand and recovery in economic is being taken to PSH plants and given the declining tariffs of solar activities. The power sector which is crucial to push growth and achieve energy, beneficiaries and users like DISCOMS find them less attractive the targets will become even more important in the current year to as a storage option. As a result of the high investment cost for a PSH facilitate economic recovery. After successfully dealing with numerous project, private participation has been low. challenges, the sectors have shown positive signs of recovery and they are on the path of continuous rise. The need to harness the power of Hydro and PSH projects are a state government legislative subject, technologies has been underlined by the pandemic. and require the support of many policymakers, including the MoP , MoEF&CC and electricity regulators, apart from state governments. In India’s total installed capacity was 399 GW as on 31.03.2022, out of March 2019, the MoP announced several policy measures to promote which 236 GW was fossil fuel based (Coal/Gas etc.) and 163 GW was investment in large hydro projects (above 25 MW) accorded RE status, non-fossil fuel (Renewable Energy + Nuclear) based. Government of including the introduction of hydro purchase obligation and budgetary India has set a target of 500 GW Renewable Energy capacity by the support for flood moderation and enabling infrastructure. year 2030. This is backed up with a commitment to achieve net-zero emissions by 2070, implemented at the global climate meet in Glasgow. In 2022, ancillary service regulations for secondary and tertiary reserve Further, to meet the future demand of electricity as projected in 19th ancillary services and the bundling of hydro with solar and wind power EPS, by 31.03.2030, the installed generation capacity is planned to be were notified. The benefits of PSPs can be shared across state and around 817 GW. national boundaries. An appropriate policy framework that lets costs and benefits be shared can increase the overall value for primary and end Energy Storage consumers. Some recent studies indicate that PSH projects would be a India is the third largest producer and consumer of electricity globally, more viable alternative for storage requirements over longer durations with annual electricity production of around 1,200-1,300 TWh and (that is, about 8-10 hours). For shorter-duration needs, existing PSH one of the largest synchronous power grids. With an ambitious units can be deployed with multiple-cycle operations. decarbonization target announced at last year’s CoP-26 climate summit GROWTH IN ENERGY REQUIREMEMTS IN THE COUNTRY in Glasgow, Prime Minister Narendra Modi raised India’s nationally determined contribution (NDC) goal of non-fossil energy capacity to Power demand in the country is expected to grow at an annual rate 500 GW by 2030, from 450 GW earlier, to help us achieve net zero of 6.5% between 2022 and 2024 backed by rising consumption from carbon emissions by 2070. As of December 2021, the installed residential and industrial segments, as projected by International Energy generation capacity of the country stood at 393 GW, comprising 235 Agency (IEA). Power consumption in India declined by more than 2% 101 during 2020 as the country faced the Covid-19 pandemic. However, the reliable power access to all citizens. The draft National Electricity following year, demand witnessed a rebound with growth of estimated Policy (NEP) under the Electricity Act, 2003 is a guiding policy for 10 percent. This took demand to higher than pre-pandemic levels, planning power generation, supply and investment, has emphasised despite the outbreak of new Covid-19 variants during March-June 2021. on increasing private participation, especially in power distribution in Demand in India declined by 7 percent between April and May 2021 its latest revision. The NEP has also introduced power quality, micro due to surging Covid-19 cases. Power consumption recovered quickly grids, pump hydro storage, real time power markets in the draft policy in June and reached new all-time high in July and August. Temporary statement as key focus areas. coal supply shortages, peaking at the beginning of the fourth quarter The NEP has introduced several new concepts starting from the need of 2021, did not prevent strong annual growth, which is estimated at of micro grids in remote areas to having a real time power market and 10% year-on-year. need for investment in pump hydro generation. With the rising capacity Per Capita Consumption in kWh of renewable energy generation and lack of balancing sources of energy 1400 such as gas and large hydro, the NEP has batted for realising the potential of pump hydro storage. The NEP noted that the country has a 1200 potential of 96,524 MW of pump hydro storage and of that barely 4,785 1000 MW has been out up. 800 For utilising power generation at the source end and reducing power supply wastage, the NEP has suggested that power distribution 600 companies (DISCOMS) should explore the possibility of micro grids, especially in areas prone to natural disasters. 400 Union Budget: 200 • The Union Budget 2022-23 pushed energy transition by 0 FY2017 FY 2018 FY 2019 FY 2020 FY 2021 encouraging domestic production of solar power equipment and batteries, in line with India’s commitments on climate change THE MAJOR REFORMS IN THE ELECTRICITY SECTOR ARE actions. • Revision of National Electricity Policy 2021, with a focus on • Allocations for energy efficiency, electric mobility, building improving DISCOMs’ financial viability, promotion of clean and efficiency, grid-connected energy storage and green bonds was sustainable power and development of an efficient electricity announced in this budget. market. Emphasis has also been put on ‘Make in India’ and ‘ATMANIRBHAR Bharat’. • Green bonds will be used to finance projects that reduce the economy‘s carbon intensity. Clean development institutions will • National Electricity Plan 2022, for integrated planning of generation be set up to mobilise finance. capacity, transmission, fuel management, human resources and fund requirements with detailed plan until 2027 and perspective • The government has plan to boost high-efficiency modules, until 2032. prioritising fully integrating manufacturing units into solar photovoltaic (PV) modules under the government’s flagship PLI • 20th Electric Power Survey (EPS), for projection of electricity scheme. demand from the financial year 2021-22 to 2031-32 (yearwise) and for terminal years 2036-37 and 2041-42. • Options to leverage India’s comparative labour advantage to produce solar power equipment and batteries could have been • Amendment of Electricity Act, with proposed elements such as explored by setting a national target of manufacturing capacity formulation of National Renewable Energy Policy, setting up of by 2030; the Centre could also enable micro, small and medium Electricity Contract Enforcement Authority, Tariff determination enterprises (MSME) to produce other non-cell components like with direct benefit transfer (DBT) of subsidy by State Governments. glass, ribbons, ethylene-vinyl acetate sheet and others. These • Implementation of Payment Security Mechanism through LC and account for around 30 percent of the total cost of a PV module to Smart Metering. challenge China’s leadership in the solar PV value chain. • Electricity (Late Payment Surcharge) rules 2021, to support the • There is a good chance that another 40 GW of solar module DISCOMs financially and for timely payment to Generators. manufacturing may occur under the PV module manufacturing scheme. The PLI scheme could allow companies to reach global • Electricity (Right of Consumers) Rules 2020, for integration of the scale or be among the top five producers. distributed renewable generation. • The Budget 2022-23 pointed out the government’s intent to These reforms are likely to help the sector’s growth in terms of launch a policy that enables the setting up of electric vehicle renewable capacity, increase in investment in the sector, improvement charging stations at scale. Private companies will be encouraged in the health of DISCOMs, reduction in pending receivables of the to model the swapping and land will be made available. generating companies etc. • Some have cheered the budget’s financial assistance to border villages to establish decentralised RE projects under the Vibrant DRAFT NATIONAL ELECTRICITY POLICY 2021– MAKING INDIA Village Programme. Youth and women can be lifted out of poverty FUTURE READY and into employment through this intervention. It is important to The National Electricity Policy (NEP) entailed provision of adequate explore the challenges faced in scaling Distributed Renewable 102 Energy (DRE) and mini-grid projects in remote areas, along with Energy Storage System (BESS). innovative financing options and community involvement in order 2. Govt. permitted the generation companies to bundle Renewable to achieve sustainability. Energy with Thermal Energy and supply power under the existing • In the transition to a greener economy, DRE may be a crucial PPA. As renewable energy is cheaper, this reduces the power catalyst in the empowerment of MSMEs, job creation and costs. The resulting saving in cost will be shared between GENCOs agricultural reforms. New initiatives to encourage productive use and DISCOMS / consumers. of clean energy in rural areas driven by DRE may be of great value 3. Distribution Companies have been provided an opportunity to exit to the rural as well as the national economy. from Power Purchase Agreement with Thermal Power Plants after • Budgetary allocations for Saksham Anganwadis development with 25 years so that they are not tied to high cost of power indefinitely. clean energy facilities is also a positive announcement. This is an 4. Tariff Based Competitive Bidding is increasingly being adopted for impressive step by the government towards its commitment for new projects in Transmission Sector instead of Regulated Tariff. Net Zero by 2070. Clean energy will reduce pollution levels even This has reduced transmission tariff by 30-40%. as villages become self-sustainable with its use of clean energy. 5. Another major step Govt have taken is to strengthen the power • Saksham Anganwadis are new generation anganwadis that exchanges so that competition takes place. provide improved infrastructure, audiovisual aids and clean energy to provide a more conducive environment for early 6. Two new products have been launched in Power Exchanges - Real childhood development. Time Market (RTM) and Green Term Ahead Market (GTAM). The Real Time Market (RTM) enables DISCOMs to buy power at the • In a positive move for both circularity and efficiency, Budget 2022- last moment and avoid load shedding. It also helps manage the 23 provides financial support to enable coal-fired power plants to variability of RE. co-fire biomass pellets at a rate of 5-7 percent. It is an attempt to boost farmers’ income and mitigate air pollution and curb stubble 7. MoP launched a web-portal called PRAAPTI (Payment Ratification burning, which reduces greenhouse gas emissions by 38 million and Analysis in Power procurement for bringing Transparency in tonnes a year. Invoicing of generators) for transparency in monitoring of dues to GENCOs at the national level. The portal provides updated CONSUMPTION monthly information to all stakeholders regarding power purchase dues of DISCOMs towards Central Generation Stations, IPPs and Total electricity consumption in India increased from 1,271 BUs in RE providers. The PRAAPTI portal is immensely helpful for all the financial year 2020-21 to 1,370 BUs in the financial year 2021- stakeholders and also for monitoring performance on DISCOMs 22 growing by 7.8%, due to economic recovery post pandemic. Major end-users of power are broadly classified into 6 categories: Agricultural, THDCIL initiative to implement Government Plan/Initiatives Commercial, Domestic, Industrial, Traction & Railways, and others. Following steps have been taken by THDCIL to support Govt. plan: During the financial year 2021-22, absolute consumption of all the sectors has increased. In this context, Pradhan Mantri Sahaj Bijli Har • THDCIL is endeavoring to grab implementation of RE Projects Ghar Yojana (SAUBHAGYA) launched with the objective to provide through Tariff based Competitive bidding. energy access to all by providing last-mile connectivity, has played an • Solar Power Parks of 2000 MW are under development in the important role. Under this scheme, about 99.99% of households have state of Uttar Pradesh through a Joint Venture Company. been electrified. Out of the remaining 17,301 un-electrified & partially electrified villages, infrastructure work has been completed in 17,297 • THDCIL has signed an MoU with RRECL (Rajasthan Renewable Villages (97%) while physical work has been completed in 14 out of Energy Corporation Limited) on 15th Apr’2022 for development of 15 districts 10,000 MW Ultra Mega Renewable Energy Parks in the Rajasthan state. Major Government Initiatives: • THDCIL is exploring the possibility of Pumped Storage Plants in 1. RENEWABLE ENERGY PROMOTION different states. • Electricity (Promotion of generation of Electricity from Must- • All procurements are being made generally through Govt. Run Power Plant) Rules, 2021 notified by MoP on 22 October e- Market portal (GeM) to encourage local venders. 2021, for promotion of the generation from renewable sources. This will ensure that the consumers get green and clean power • THDCIL have plan to install a pilot project for Green Hydrogen and secure a healthy environment for the future generations. production and Hydrogen fuel cell based micro-grid at THDCIL office complex, Rishikesh, Uttarakhand. • Introduction of Green Day Ahead Market (GDAM) which facilitates the accomplishment of green targets as well as • THDCIL endeavors to undertake development of floating Solar supports the integration of green energy in a most efficient, Power Plants on existing reservoirs & canals of irrigation & hydro competitive, and transparent manner. It brings transparency to projects in India. the purchase of green power as well as facilitates the obligated • As to venture into the business of providing carbon capture entities to meet their Renewable Purchase Obligation (RPO). services across the country as an EPC contractor through joint • The waiver of ISTS charges for transmission of the electricity ventures or technology transfer license, THDCIL is in process of generated from solar and wind projects commissioned up to implementing a Pilot Project for carbon capture at Khurja STPP 30 June 2025. Moreover, the waiver of ISTS charges shall also (2x660 MW) with a newly emerging cost-effective carbon capture be allowed for Hydro Pumped Storage Plant (PSP) and Battery technology. 103 • Under the ‘Make in India’ program, THDCIL is encouraging Electricity Regulatory Commission (CERC) has notified the Tariff ‘local suppliers’ by making the suitable provisions in the tender Regulations, 2019 containing inter-alia the terms & conditions documents. for determination of tariff, applicable for a period of five years with effect from 01.04.2019. Tariff is determined with reference • For promotion of livelihood and employability among the youths & to Annual Fixed Cost (AFC) which comprises of Return on Equity residents of local area, numerous activities are being implemented (ROE), Depreciation, Interest on Loan, Interest on Working Capital by THDCIL. and Operation & Maintenance Expenses. ROE is grossed up with • In additional to above, numerous other CSR activities for promotion effective income tax rate of the respective financial year so as to of environment and clean energy are being implemented by recover the income tax incidence. For the purpose of recovery, AFC THDCIL. is bifurcated into two equal parts i.e. Energy Charge and Capacity Charge. Recovery of Energy Charge is dependent upon scheduled • To complement the efforts of Govt. of India for mitigation of saleable energy and full recovery is ensured when saleable design climate change, THDC has established Uttarakhand’s First Public energy level is achieved. Generation over and above saleable design Electric Vehicle Charging Station at Dist. Haridwar. In addition energy is billed for additional revenue in the form of energy charge for to this THDCIL distributes Solar based Street Lights, LED Street energy in excess of saleable design energy at ` 1.20/kWh. Recovery Lights, Induction Cook Top along with utensils, etc. of capacity charge is dependent on the actual availability factor of FINANCIAL DISCUSSION AND ANALYSIS: plant for generating power with reference to Normative Annual Plant Availability Factor (NAPAF), which has been fixed by Hon’ble CERC The Company is mainly engaged in the business of generation of at 80% for Tehri HPP and 68% for Koteshwar HEP for the fiscal 2022. electricity through hydro & non conventional renewable energy projects. Company is entitled to receive incentives for achieving higher Plant The tariff for the electricity generation of hydro projects is regulated in Availability Factor (PAF) against NAPAF. terms of the CERC Tariff Regulations. Revenue from operations also includes: A detailed financial discussion and analysis is furnished below on the Audited Financial Statements of the company for the fiscal 2022 vis-à- i. Sale of Wind Power from the Patan Wind Project in Gujarat is vis fiscal 2021. regulated as per the Power Purchase Agreement (PPA) signed with Gujarat Urja Vikas Nigam Limited (GUVNL). Reference to Note(s) in the following paragraphs refers to the Notes to the Standalone financial statements for the financial year 2021-22 ii Sale of Wind Power from the Dwaraka Wind Project in Gujarat placed elsewhere in this report. is regulated as per the Power Purchase Agreement (PPA) signed with Gujarat Urja Vikas Nigam Limited (GUVNL). Figures of previous years have been regrouped/ rearranged wherever necessary. iii. Sale of Small Hydro Power from the Dhukwan SHP in Uttar Pradesh is regulated as per the Power Purchase Agreement A. RESULT OF OPERATIONS (PPA) signed with Uttar Pradesh Power Corporation Limited (UPPCL). Units of Electricity Generated (MU) FY 2021-22 FY 2020-21 iv. Sale of Solar power from Kasaragod Solar Project in Kerala is Generation 4670.80 4565.36 regulated as per the Power Purchase Agreement (PPA) signed Sales 4128.76 4029.62 with Kerala State Electricity Board Limited (KSEBL). INCOME ` In Crore Revenue from Operations (Note 33) 1. Revenue from Continuing 1921.49 1796.01 Hon’ble CERC notified the Central Electricity Regulatory Commission Operations (Note 33) (Terms and Conditions of Tariff) Regulations, 2019 vide Order dated 2. Other Income (Note 34) 7th March 2019 for determination of tariff for the control period 2019-2024. THDCIL has filed tariff petitions before the Hon’ble a) Late Payment Surcharge from 225.46 660.94 CERC for Tehri HEP & Koteshwar HEP for determination of Tariff for Beneficiaries the period 2019-24. Pending tariff determination for 2019-24, sales b) Others 80.39 44.98 revenue for current financial year has been provisionally recognized Total Income 2227.34 2501.93 based on Audited & Certified AFCs of FY 2021-22 worked out as per the principles enunciated in CERC Tariff Regulations, 2019 applicable 1. INCOME for the period 2019-24. Increase in Revenue from operation is mainly due to recovery of impact of wage revision of employees, impact of The income of the Company comprises of income from sale GST etc. vide CERC order dated 23.10.2021. of electricity, interest & surcharge received from beneficiaries, consultancy, etc. The gross income for fiscal year 2022 is ` 2227.34 Sales include an amount of ` 26.17crore (previous year ` 46.86 crore as compared to ` 2501.93 crore in the previous year registering crore) on account of capacity incentive in respect of hydro power a decrease of 10.98%.The decrease in gross income is mainly due stations mainly due to achievement of higher plant availability factor to decrease in Late Payment Surcharge from Beneficiaries. as compared to Normative Plant Availability Factor. Tariff Sales also include an amount of ` 33.99 crore (previous year ` 33.40 crore) on account of energy charges beyond saleable design The sale of Hydro Power by the Company is governed by the tariff energy in respect of hydro power stations mainly due to achievement fixed by the Central Electricity Regulatory Commission (CERC) of higher energy as compared to Design Energy of power stations. pursuant to the tariff policy issued by the Govt. of India. The Central 104 Hon’ble CERC has issued tariff order for the period 2014-19 dated Other Income (Note 34) 10.05.2022 and 2019-24 dated 13.05.2022 having an impact of Other income mainly comprises the following: (-) ` 3.49 crore (including Interest) and (-) `46.47 crore (including Interest) for the period upto 31.03.2022 respectively. The impact of (` in Cr.) these orders shall be accounted for during the FY 2022-23 as these Income Financial Financial orders were received beyond the window kept open for accountal of Year 2021-22 Year 2020-21 liabilities, provisions etc. and it’s Audit. Interest from Banks 0.34 0.20 Sales Revenue for Wind, Small Hydro and Solar Projects has been Late Payment Surcharge from 225.46 660.94 recognized based on tariff as per PPAs. Beneficiaries Company sells electricity to bulk customers comprising mainly, Other Miscellaneous Income 80.05 44.78 Electricity Utilities owned by State/UT Governments and private (Including Machine Hire charges, distribution companies. Sale of electricity is generally based on rent receipt, sundry receipt, long term Power Purchase Agreements (PPAs) entered with such excess provisionwritten back, Utilities. profit on sale of asset, Interest from Employees, Others and The details of Generation & Plant Availability Factor (PAF) are foreign currency fluctuation given below: adjustment) Total Income 305.85 705.92 Particulars Tehri HPP Koteshwar HEP (1000 MW) (400 MW) Other income for the year has been decreased to ` 305.85 crore 2021-22 2020-21 2021-22 2020-21 as compared to ` 705.92 crore during previous year registering an decrease of 56.67%. This is mainly due to the reason that during FY Design Energy 2797 2797 1154.84 1154.84 2020-21, Co. received ` 660.94 crore as Late Payment Surcharge (MUs) under Atam Nirbhar Bharat Scheme. Besides there is increase in excess Gross Generation 3098.11 3042.24 1190.69 1221.45 provision written back & others by ` 35.41 crore related to BYPL. (MUs) 2. Expenditure Normative PAF 80 80 68 68 Expenditure comprises the following: (%) (` in Cr.) Actual PAF (%) 83.728 86.092 68.614 70.132 Expenditure Financial Financial Sales also includes Deviation Settlement Charges amounting to Year 2021-22 Year 2020-21 ` 14.47 Cr. (previous year ` 11.19 crore) at the rates notified by CERC Employee Benefits Expense 354.11 388.78 from time to time. (Note 35) Revenue from Wind, Small Hydro Power & Solar Power Projects: Finance Costs (Note 36) 134.11 181.93 Depreciation and 302.65 317.33 The revenue from sale of Renewal Energy Projects (Wind, Small Amortisation(Note 2) Hydro and Solar Power) in fiscal 2022 has been increased by ` 24.18 crore from previous year due to commencement of generation from Generation, Administration and 287.06 230.33 Kasaragod Solar Project. Dhukwan SHEP and Kasaragod Solar Project Other Expenses (Note 37) have contributed ` 27.66 crore & ` 26.72 crore respectively. There is Provision for Bad and Doubtful 0.00 0.25 increase in revenue from Wind Projects amounting to ` 9.05 crore. debts, CWIP and Stores & Spares The company is also availing Generation Based Incentive on its Wind (Note 38) Projects which is ` 10.88 crore (PY ` 10.16 crore). Total Expenditure 1077.93 1118.62 The details of Generation & Sales in MU from Wind, Small Hydro Power Net movements in regulatory & Solar Power Projects are as under: deferral account Balance- (29.72) 42.83 income/ (expense) Particulars Wind (113 MW) Dhukwan Kasargod Solar Patan-50 MW, Dwarika 63 MW (24 MW) (50 MW)* CY PY CY PY CY PY Generation (MU) 234.64 212.07 58.25 72.24 89.11 17.36 Sales (MU) 224.99 203.28 56.94 70.85 88.20 17.30 (*) COD- 31.12.2020 (FY 2020-21) 105 Employee Benefits Expense (Note 35) fiscal 2020-21. In absolute terms the expenses were ` 287.06 crore in fiscal 2021-22 as compared to ` 230.33 crore during previous year The Employee Benefits Expense includes Salaries and Wages, i.e. increase of ` 56.73 crore. Mainly due to increase in expenses on Allowances & Benefits, Contribution to Provident Funds & Other repairs & maintenance by ` 19.09 crore, security expenses by ` 10.10 Funds, Welfare Expenses and Amortisation Expenses of Deferred crore, consultancy expense by ` 7.95 crore, CSR expenses by ` 4.92 Employee Cost. These Expenses accounted for 32.85% of total crore, increase in other general expenses such as professional fee, expenditure in Fiscal 2021-22 as compared to 34.76% in Fiscal 2020- stipend, and others by ` 14.67 crore. 21. The Employee Benefits Expense during the year was ` 354.11 crore (previous year ` 388.78 crore) i.e. decrease of ` 34.67 crore Provision for Bad and Doubtful Debts, CWIP and Stores & Spares in comparison to the previous year. The decrease is mainly due to (Note 38) decrease in employee strength and decrease in expenses related to PRP etc. There is no expenditure on Provision for Bad and Doubtful Debts, CWIP and Stores & Spares during fiscal 2021-22 in comparison to 0.02% of Finance Costs (Note 36) total expenditure during fiscal 2020-21. In absolute terms the expenses were Nil in fiscal 2021-22 as compared to ` 0.25 crore during previous The Finance Cost mainly consists of interest on Bonds, Domestic Loans, year i.e. decrease of ` 0.25 crore. Decrease is related to provision for Foreign Loans, Cash Credit etc. During the F.Y. 2021-22, finance costs non-moving stores and spares in Tehri unit. decreased by ` 47.82 crore (current year ` 134.11 crore, previous year ` 181.93 crore). Decrease in finance cost is mainly on account Net Movement in Regulatory Deferral Account Balance (Note 40) of decrease in interest on domestic loan by ` 35.44 crore due to net decrease in long term domestic loans by ` 343.28 crore, decrease in The Company is mainly engaged in generation and sale of electricity. The interest on STL and cash credit by ` 46.53 crore due to decrease in price to be charged by the company for electricity sold from hydro power interest rate and decrease in others by ` 2.60 crore. However there projects to its customers is determined by the CERC which provides is increase in FERV charged to P&L account (FERV charged to P&L guidance on the principles and methodologies for determination of the for the period 01.04.2021 to 31.03.2022 is ` 12.70 crore whereas tariff. The tariff is based on allowable costs like interest, depreciation, for the period 01.04.2020 to 31.03.2021 was ` (-16.50 crore), net operation & maintenance expenses, etc. with a stipulated return on increase of ` 29.20 crore) and increase in interest on bonds by ` 7.55 equity. As per the CERC Tariff regulations any gain or loss on account Crore charged to P&L after COD of Solar Projects. Besides there is net of exchange rate variation during the construction period shall form decrease in others by ` 2.60 Crore. part of the capital cost till the declaration of commercial operation date. Impact of pay revision, Deferred tax differences, Exchange differences Depreciation and Amortization Expenses (Note 2) arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to As per the Accounting Policy of the Company, depreciation is charged beneficiaries in subsequent periods as per CERC Tariff Regulations are on straight line method following the rates & methodology notified by recognized on an undiscounted basis as regulatory deferral account Central Electricity Regulatory Commission (CERC) for the purpose of debit / credit balance in Balance sheet and net impact is recognized fixation of tariff in accordance with Schedule-II of the Companies Act, in profit and loss account as Net movement in Regulatory Deferral 2013 except for some items for which depreciation is charged at the Account Balance. The same are adjusted on their materialization as rates assessed by the Company. part of tariff. This is accounted for as per Ind AS-114. The depreciation cost has decreased by `14.68 crore (C.Y. ` 302.65 Net movement in Regulatory Deferral Account Balance Income/ crore; P .Y. ` 317.33 crore). Decrease of ` 19.10 crore is mainly (Expense) amounts to ` (-29.72) crore for the F.Y. 2021-22 and due to change in depreciation methodology i.e. from “accelerated ` 42.83 crore for the F.Y. 2020-21. depreciation to be charged in initial 12 years” to “depreciation to be charged evenly on entire project life” in case of Non-CERC projects i.e. Reasons for decrease of ` 72.55 crore: Patan & Dwarka Wind Power, Solar Power and Dhukwan HEP . Besides there is increase in depreciation of ` 6.00 crore on Solar Power Plant 1. Reduction in regulatory deferral account debit balance on due to commissioning of the plant w.e.f. 01.01.2021 and decrease in account of pay revision by ` 83.73 crore in view of CERC order others by ` 1.58 Crores. dated 23.10.2021 (Previous Year Nil). Depreciation represents 28.08% of our total expenditure during fiscal 2. Increase in regulatory deferral account debit balance due to 2021-22 in comparison to 28.37% during fiscal 2020-21. exchange rate variation loss on account of appreciation of Dollar against Rupee by ` 12.70 Crore. (Previous Year decrease in General, Administration and Other Expenses (Note 37) deferral account debit balance by ` 16.50 crore due to exchange rate variation gain). General, Administration and Other Expenses comprises mainly of Rent, Repair & Maintenance of Buildings, Roads and Plant & Machinery, 3. Reduction in regulatory deferral account credit balance by Vehicle hire & running, Security, Payment to Auditors, Survey ` 35.02 crore due to recognition of deferred Tax Liability. and Investigation, Expenditure on CSR & S.D. Activities and other (Previous Year reduction of ` 68.40 Crore). administrative expenses. 4. Tax benefit due of ` 6.29 crore accounted for in the current year General, Administration and Other Expenses represents 26.63% of total due to above. (During previous year tax expense of ` 9.07 crore expenditure during fiscal 2021-22 in comparison to 20.59% during was accounted for). 106 Profit before Tax (Previous year ` 13958.64 crore). The increase is due to capitalisaton of various assets mainly related to Coal bearing land of Amelia unit by Profit before tax decreased by ` 198.25 crore (` 1149.41 crore during ` 60.60 crore, capitalization of various assets such as building, Roads F.Y. 2021-22 as against ` 1347.66 crore during F.Y. 2020-21) due to & Bridges, Drainage, Water supply etc. of ` 33.10 crore in VPHEP unit, the reasons explained above. ` 53.52 crore in Tehri unit. However there is Decrease in Tehri unit by ` 49.04 crore relating to Right of Use Land. However, Net Block of PPE Tax Expenses (Note 39): at the end of current year is ` 6755.44 crore (Previous year ` 6972.71 i) Current Tax Expenses: The Company recognises tax on income crore), with cumulative impact of decrease due to depreciation of in accordance with provisions of the Income Tax Act. The Current ` 347.75 crore charged during the period ended 31.03.2022 and Tax for the year is ` 189.34 crore as compared to ` 229.60 crore increase in gross block. during previous year. Capital Work-in-progress & intangible assets under development (Note 3) B. FINANCIAL POSITION Capital Work-in-progress during Current year registered an increase Assets and Liabilities in the Balance Sheet have been classified as of ` 3033.09 crore (from ` 6414.30 crore to ` 9447.39 crore) mainly ‘Non-Current’ and ‘Current’ which have been further classified as due to: financial and other categories as per the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015 and 1. Increase in capital works of Khurja unit by ` 2183.85 crore. Schedule III to the Companies Act, 2013 & subsequent amendments thereto. 2. Increase in capital works of Tehri PSP Unit by ` 545.41 crore. The items of the Balance Sheet are as under: 3. Increase in Amelia unit by ` 173.42 crore. ASSETS: 4. Increase in capital works of VPHEP Unit by ` 133.64 crore. 1. Non-Current Assets 5. Decrease in capital works of Tehri O&M unit by ` 8.53 crore. (` in Cr.) 6. Net increase in others by ` 5.30 crore. Financial Assets As of March As of March 31, 2022 31, 2021 All financial assets except trade receivables and investments in Property, Plant and Equipment 6343.47 6561.85 subsidiaries & Joint Ventures are recognised initially at fair value plus (Note 2) or minus transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair Right-of-use Assets (Note 2) 411.72 410.50 value through profit or loss are expensed in statement of profit or loss. Other Intangible Assets (Note 2) 0.25 0.36 Non Current Assets-Investments in Subsidiary Co.-(Note 4) Capital Work-in-progress (Note 3) 9447.39 6414.30 Investment in Subsidiary Company 14.80 7.40 Investments are intended for long term and carried at cost which (Note 4) consists of investments in Subsidiaries. Total Investments at the Financial Assets year end is ` 14.80 crore, which has been made in M/s TUSCO Ltd., subsidiary JV company with UPNEDA. - Loans (Note 5) 36.12 39.24 - Advances (Note 6) 0.00 0.01 Non Current Financial Assets -Loans (Note 5) Deferred Tax Assets(Net) (Note 7) 836.29 871.31 Non Current Loans are those loans which are expected to be realised Non-Current Tax Assets (Net) 43.21 32.49 after 12 months from the balance sheets date. These loans mainly (Note 8) include, loans and advances given to employees at concessional rates and have been fair valued at reporting date. Loans at the end of current Other Non-Current Assets (Note 9) 2042.24 1906.22 year is ` 36.12 crore (Previous year ` 39.24 crore). Total 19175.49 16243.68 Deferred Tax Assets (Net) (Note 7) Non-Current Assets has increased by 18.05% to ` 19175.49 crore (Previous year ` 16243.68 crore). Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that Property, Plant and Equipment (PPE) (Note 2) have been enacted or substantively enacted by the reporting date. The net deferred tax assets decreased by ` 35.02 crore (current year PPE includes Net Block after depreciation in respect of Land, Buildings, ` 836.29 crore, previous year ` 871.31 crore). The decrease is mainly Roads & Bridges, Plant & Machinery, Generating Plant & Machinery, due to decrease in book depreciation, decrease in DTL on right of use Electrical Works, Hydraulic Works (Dams, Tunnels etc.), Vehicles, assets, increase in excess provision written back, decrease in actuarial Electrical / Office Equipments, Furniture/Fixtures etc. Gross Block of and other provisions. PPE during the year increased by ` 125.89 crore to ` 14084.53 crore 107 Non Current Tax Assets (Note 8) Cash and Cash Equivalents (Note 12) It represents the amount deposited with income tax deptt. for which Cash and Cash Equivalents & Bank Balances other than cash and assessment has not yet been completed. It has registered an increase cash equivalents include mainly balances with Banks. Cash and Cash of ` 10.72 crore from PY ` 32.49 crore to ` 43.21 crore. Equivalents during the current year has decreased to ` 87.77 crore as compared to Previous year ` 225.08 crore. Thus there is decrease of Other Non Current Assets (Note 9) ` 137.31 crore. Other non-current assets mainly consist of Deferred Employee Cost Current Financial Assets -Loans (Note 13) due to Fair Valuation, Capital Advances given to Contractors, Govt. Deptt. / organizations, Interest accrued on advances to contractors etc. Current loans as at 31.03.2022 is ` 9.59 crore (Previous year ` 9.43 It has increased to ` 2042.24 crore as compared to PY ` 1906.22 crore). Thus there is increase of ` 0.16 crore mainly due to increase crore mainly on account of addition to Advances to Contractors ` 91.75 in employee loans. crore, Government Agencies ` 18.32 crore and increase in accrued interest by ` 62.75 crore. Besides there is adjustment of advance of Current Financial Assets -Advances (Note 14) ` 32.49 crore related to Government Agencies and net decrease in Advances mainly include advances to Employees and others. Advances others by ` 4.31crore. during the Current year has decreased to ` 8.89 crore as compared to 2. Current Assets Previous year ` 10.33 crore. Thus there is decrease of ` 1.44 crore. (` in Cr.) Current Financial Assets -Others (Note 15) Other financial assets represents Unbilled Revenue on account of As of March As of March balances of beneficiaries against pending tariff petition, security 31, 2022 31, 2021 deposit, deposits with Govt./ Court and other deposits. Other financial Inventories (Note 10) 40.94 34.94 assets increased to ` 849.21 crore during current year as compared to Previous year ` 746.57 crore. Thus there is an increase of ` 102.64 Financial Assets crore mainly due to increase in balances of beneficiaries against - Trade Receivables (Note 11) 723.72 1162.03 pending tariff petition. - Cash and Cash Equivalents (Note12) 87.77 225.08 Current Tax Assets (Net) (Note 16) - Loans (Note 13) 9.59 9.43 This is the amount which is ultimately due from Income Tax Authorities -Advances (Note 14) 8.89 10.33 as refund on account of completion of Assessment. It includes refunds - Others( Note 15) 849.21 746.57 due against AY 2016-17 & 2017-18. Current Tax Assets (Net) (Note 16) 60.82 60.79 Other Current Assets (Note 17) Other Current Assets (Note 17) 42.78 54.35 Other Current Assets mainly include prepaid expenses, interest accrued Total 1823.72 2303.52 etc. Other Current Assets decreased by ` 11.57 crore during current year mainly due to decrease in prepaid expenses. Current Assets as on March 31, 2022 has decreased by ` 479.80 crore to ` 1823.72 crore (Previous year ` 2303.52 crore). The item Regulatory Deferral Account Debit Balance (Note 18) wise analysis is as under: Expense/Income recognised in the Statement of Profit & Loss to the Inventories (Note 10) extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC tariff regulations are recognised as “Regulatory Inventories mainly comprise stores & spares which are maintained deferral account balances” in line with the Guidance Note on for operating plants. Inventories are valued at lower of cost arrived at “Accounting for Rate Regulated Activities” issued by the Institute of on weighted average basis and net realizable value. Inventories were Chartered Accountants of India and also keeping in view the provisions valued at ` 40.94 crore as on 31 March, 2022 (Previous year ` 34.94 of Ind AS-114 Regulatory Deferral Accounts. Regulatory deferral crore). account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries. Regulatory Financial Assets deferral account balances include foreign exchange rate variation on foreign currency loans regarded as borrowing cost and employee Trade Receivables (Note 11) benefit expense on account of pay revision w.e.f. 01.01.2017, to the Trade Receivables mainly consists of receivables on account of Sale of extent recoverable from beneficiaries in subsequent period. Energy. Trade receivable does not include unbilled revenue on account Regulatory Deferral account debit balance at the year-end is 98.69 crore of balances of beneficiaries against pending tariff petition, which has (Previous year ` 169.72 crore). Decrease of ` 71.03 crore is due to been shown separately under other current financial assets (Note 15). reduction on account of pay revision by ` 83.73 crore as the same was Trade Receivables during the Current year has decreased by ` 438.31 adjusted in view of recovery of impact of wage revision of employees, crore to ` 723.72 crore (Previous year ` 1162.03 crore). Net decrease impact of GST etc allowed vide CERC order dated 23.10.2021 is mainly due to realization from beneficiaries. whereas Regulatory deferral account debit balance of ` 12.70 Crore 108 was recognised during the current period ended 31.03.2022 due Lease Liabilities (Note 22) to exchange rate variation loss on account of appreciation of Dollar against Rupee. The Company’s significant leasing arrangements in which the lease is non-cancellable and are usually renewable on mutually agreeable 3. Equity and Liabilities terms, such leases are capitalized at the present value of the total minimum lease payments to be paid over the lease term. Future lease Total Equity rentals are recognized as ‘Lease Liabilities’ at their present values. Lease liabilities as on March 31, 2022 were ` 29.99 crore as against Total Equity of the Company at the end of the financial year 2021-22 ` 9.19 crore as on March 31, 2021 and registered increase of ` 20.80 and 2020-21 is as below: crore. Increase is mainly due to capitalization of right of use of coal bearing land. (` in Cr.) Other Financial Liabilities (Note 23) Particulars As of March As of March 31, 2022 31, 2021 Other financial liabilities comprises of Deposits and Retention Money from Contractors. Other financial liabilities for the current year is Equity Share Capital (Note 19) 3665.88 3665.88 ` 162.40 crore (Previous year ` 28.11 crore).Thus there is increase Other Equity (Note 20) 6640.27 6251.55 of ` 134.29 crore mainly due to increase in deposits, retention money Total Equity 10306.15 9917.43 from contractors. Other Equity (Note 20) Other Non-current Liabilities (Note 24) The break-up of Other Equity includes Retained Earnings ` 6527.77 Other non-current liabilities include Advance against Depreciation crore (PY ` 6189.69 crore), Debenture Redemption Reserve ` 128.00 (AAD), Contribution Received from GoUP towards irrigation component crore (PY ` 79.50 crore) and OCI `-15.50 crore (PY `-17.64 crore). It and deferred fair valuation gain on Security Deposit/Retention Money. is worth to mention that company has paid dividend of ` 508.20 crore Other non-current liabilities have registered a increase of ` 19.70 crore during the year and adjusted with retained earnings. as compared to previous year figures mainly due to increase in deferred fair valuation gain and adjustment of AAD and irrigation component. LIABILITIES Non-current Provisions (Note 25) Non-Current Liabilities Non - current Provisions are on account of employee benefits provided (` in Cr.) on the basis of Actuarial Valuation and Other Retirement Benefits which are expected to be settled beyond a period of twelve months from the Particulars As of March As of March balance sheet date. Non-current provisions decreased by `13.91 crore 31, 2022 31, 2021 to ` 176.46 crore during current year (previous year ` 190.37 crore). Disclosures as per Ind AS-19 “Employee Benefits” are given in Note Financial Liabilities No. 43.24 to the Standalone Financial Statements. -Borrowings (Note 21) 6653.98 5014.22 4. Current Liabilities -Lease Liabilities (Note 22) 29.99 9.19 -Non-Current Financial Liabilities 162.40 28.11 (` in Cr.) (Note 23) Particulars As of March As of March Other Non-current Liabilities 816.23 796.53 31, 2022 31, 2021 (Note 24) Financial Liabilities Provisions (Note 25) 176.46 190.37 -Borrowings (Note 26) 1352.73 1233.51 Total 7839.06 6038.42 -Lease Liabilities (Note 27) 4.17 4.06 Non Current-Financial Liabilities -Borrowings (Note 21) -Trade Payables 27.94 25.07 Borrowings as on March 31, 2022 were ` 6653.98 crore as against -Others (Note 28) 616.44 463.62 ` 5014.22 crore as on March 31, 2021 and registered increase of ` 1639.76 crore. During FY 2021-22, Borrowings has increased due to Other Current Liabilities (Note 29) 87.59 142.95 issuance of Bond Series V of ` 1200 crore, term loan of Bank of Baroda Provisions (Note 30) 348.62 341.63 by ` 675 crore and World Bank Loan by ` 12.97 crore. However there is decrease in long term loans of PFC, REC by ` 107.79 crore and PNB Total 2437.49 2210.84 by ` 140.42 crore. 109 The Current Liabilities as at March 31, 2022 and 2021 are ` 2437.49 Contingent liabilities has increased by ` 307.90 crore mainly due to crore and ` 2210.84 crore respectively. The Current Liabilities have increase in claims amount relating to Water Tax & Green Energy Cess increased by 10.25% and items wise analysis has been given as under: levied by State Govt., contractors claims and interest thereon. Current - Financial Liabilities -Borrowings (Note 26) D.Consolidated Financial Statements of It includes Secured & Unsecured Short Term Loans from Bank & FIs, THDC India Ltd. Overdraft facility availed from banks and current maturities of Long Term Borrowings. It has increased by ` 119.22 crore to ` 1352.73 The consolidated financial statements have been prepared in accordance crore (Previous Year ` 1233.51 crore) mainly due to increase in with Indian Accounting Standard (Ind AS-110) - ‘Consolidated financial overdraft/ cash credit facility from banks. Statements’ Ind AS-28 -Investments in Associates & Joint Venture, Current - Financial Liabilities -Lease (Note 27) Ind AS-112 ‘Disclosure of Interests in other entities’ and are included It includes current maturities of finance lease obligations and has in the Annual Report. The Financial Statements of the Company and registered a nominal increase of ` 0.11 crore its subsidiaries are combined on line by line basis by adding together of the like items of assets, liabilities, income and expenses after Current - Financial Liabilities -Others (Note 28) eliminating intra-group balances, intra-group transactions, unrealized Other Financial Liabilities mainly includes Liabilities for Employees profit or losses. Remuneration and Benefits, Liabilities for Purchase /Construction of Fixed Assets, Deposits, Retention Money from Contractors and interest SWOT ANALYSIS: accrued but not due. Other Current Financial Liabilities have increased by ` 152.82 crore to ` 616.44 crore (Previous year ` 463.62 crore) Analytical study of Opportunities and Threats vs. Strength and mainly due to increase in deposit & retention money from Contractors Weaknesses of your Company is as under: and interest accrued but not due. Other Current Liabilities (Note 29) 1. STRENGTHS Other Current Liabilities mainly includes current portion of Advance • Strong technical skill base: against Depreciation, Other recoveries deposited in subsequent period and adjustment of Irrigation component. Other Current Liabilities at the With two operational Mega Hydro Power Plants, two Wind Power year-end was ` 87.59 crore (Previous year ` 142.95 crore).Thus there Plants in same financial year and 24 MW Dukhwan SHP & 50 is decrease of ` 55.36 crore mainly due to adjustment of liability related MW Solar Power Plant in Kerala and with successful resolution to civil soyam land. of enormous challenges one after another, THDCIL has proven its presence and expertise in power sector well ahead of others. This Current Provisions (Note 30) enormous experience has created gems of technical expertise Short Term Provisions include Unfunded Employees Benefits payable and established THDCIL as a Company full of exceptionally within Twelve Months as per Actuarial Valuation, Performance Related strong technical knowledge base among its competitors in Power Pay and Works related provisions. Current Provisions have increased Sector. by ` 6.99 crore in the fiscal 2022 to ` 348.62 crore (Previous year ` 341.63 crore) mainly due to employees related provision. • Capable in handling complex Environmental and R&R issues involved in the implementation of Hydro Electric Projects: Regulatory Deferral Account Credit Balance (Note 32) Deferral account credit balance at the year-end is ` 515.20 crore THDCIL has adopted best practices to minimize the environmental (Previous year ` 550.23 crore). During the current year ended impact due to the activities pertaining to implementation of power 31.03.2022, the regulatory deferral account credit balance was projects. Company’s strategy on environmental sustainability is reduced by ` 35.03 crore due to recognition of deferred tax liability. to optimize the use of water & energy, reducing Carbon footprint and protecting / reconstructing biodiversity. As a responsible C. Contingent Liabilities corporate citizen, THDCIL is carefully handling e-waste, The following are the components of claims against the Company not Household waste and muck disposal at the project locations. acknowledged as debt: Further, in the direction ahead, a bio gas plant, sewerage (` in Cr.) treatment plants and water conservation measures are already in place. Particulars As at 31.03.2022 31.03.2021 THDCIL had carried out massive R&R while implementing Capital Works (A) 1010.57 860.93 Tehri Hydro Power Complex. The experience and learning is presently being applied in VPHEP & Khurja STPP . THDCIL has Land Compensation cases (B) 67.99 65.03 proven record of helping local communities by developing State/Central Govt. deptt/Authorities (C) 1235.32 1106.88 infrastructure and taking various initiatives in the field of health, Others (D) 2823.21 2789.17 education, women empowerment, rural development, etc. during implementation phase of projects and beyond that. THDCIL’s Possible reimbursement in respect of A commitment to Project Affected Families is to provide them Nil Nil to D of above. better socio-economic status by minimizing financial damage by Disputed Tax Matters 1.72 8.90 offering suitable compensation and alternative sources of income generation. Total 5138.81 4830.91 110 • Exceptional Engineering and construction skills in underground • Hydro Power Projects have high gestation period in general. works in complex Himalayan Geology: • Delay in tapping potential opportunities. Himalayan region is well known for its complex Geology. Exceptional Engineering and constructional skills applied • Power generation is a highly regulated business. The allocation during Construction of huge mesh of underground structures of projects as well as the sale price of energy is governed by associated to Tehri HPP has been consistently appreciated by regulators. the Engineering community. The experience of Tehri HPP proved immensely useful in construction of Koteshwar HEP . The rich • The Solar and Wind Power Stations are faced with the uncertainty experience and expertise developed within the company is being pertaining to availability of generating resources. used presently in under-implementation hydro projects. • Company’s core business i.e. generation of hydro power also • Efficient Operation and Maintenance: faces the challenges of availability of flow in the rivers. THDCIL has gathered best in the class experience in operation • Rising contingent liabilities. and maintenance of its operational Power Plants. THDCIL has developed enormous expertise and progressively looking • Procedural constraints associated with Public Sector ownership. towards maximising plant performance, effective monitoring, minimising accidents and working efficiently. This resulted in • Low utilization levels of existing and innovative technologies. uninterrupted high quality power generation and achievement of plant availability well beyond normative values. • Natural Attrition- Major chunk of experienced work force shall retire by 2023-24. Lacking in timely & adequate recruitment may • Automated Plant Monitoring: cause the knowledge drain due to natural attrition. Plants are being monitored through SCADA (Supervisory Control 2. OPPORTUNITIES and Data Acquisition) system, which uses computers, network data communication supported by graphical user interface, • Enormous untapped Hydro Power Potential and Rising Share which results in high-level supervisory management of power of infirm renewable injection: Enormous hydro power potential plants. is available in India but major share of it is still untapped. Current thrust towards renewable energy is itself putting thrust • Competent and Committed Workforce: to implement more Hydro/Pumped Storage Plant for peaking support in order to stabilize the grid. THDCIL has exceedingly strong asset of highly technical, professional Management team and excellent team of Support • Renewable Energy (RE) Staff consisting of 1644 employees (as on 31st March- 22). As India targets to achieve 500 GW of RE capacity by 2030, • Strong Financial Management: some of the key opportunities in the renewable energy sector are evolving. MNRE issued the UMREPP scheme on 15th June 2020 THDCIL is a profit making Company, ever since commissioning to provide land, upfront to the project developers and facilitate of its maiden project, Tehri HPP. With Reserves and Surplus more transmission infrastructure for adding RE capacities with solar/ than Paid-up Capital, the company has robust platform to invest wind/hybrid mode and with storage system if required and in area its resources for future expansion / capacity addition programs. of Energy Storage CEA has a projected Battery Energy Storage (BES) capacity of 132 GWh as a part of the installed capacity • High employee retention rate: in 2032. The storage requirement for grid balancing and grid support activities is an opportunity for RE deployment. THDCIL has exceedingly high retention rate of exceptionally skilled, highly experienced, dedicated and motivated manpower. • Opportunities in other Countries: With multi Trade Corporation The retention rate of employees on fixed term basis is also very / expansion policy of Govt. of India among various countries in high as the facilities given to them are one of the best in the force, huge potential for growth of the business outside India has industry. emerged, particularly in countries, where Government of India provides bilateral support, such as Nepal and Bhutan. To harness WEAKNESSES same, THDCIL is looking forward to utilize its power generation skills and focuses itself in developing potential markets through • Despite of opening of LC by DISCOMs as per mandate given collaborations with other firms to strengthen its business by GoI, outstanding dues of DISCOMS adversely affecting the development activities in other geographies as well. financial health of the Company. • Strategic Diversification : • Company’s Hydro projects in complex Himalayan Region are vulnerable to Geological surprises, resulting in delay leading to THDCIL has already diversified into conventional (Thermal) and time and cost overrun which has adverse impact on normative non-conventional (Wind & Solar) sources in India and looking tariff. 111 ahead for similar opportunities abroad. • Increasing Natural Calamities: The Hydro projects are mainly located in hilly terrains. The hilly terrains are posed to • Thermal Power: Khurja Super Thermal Power Plant of 1320 MW threats of Natural calamities like landslides, frequent hill slope having annual generation of 9828 MU would be ready by 2024- failures resulting in road blockades, increasing phenomenon of 25. cloud bursts in monsoon. These results in severe setbacks in construction schedules, leading to huge time & cost overruns • Wind Power: Already commissioned two Wind Projects totaling and tariff. 113 MW capacity. Looking forward for other projects. • Skilled Labour Problem : Due to Covid-19 Lockdown, entire • Solar Power: THDCIL has commissioned 50 MW Solar PV labour force employed at Projects, is moving towards their native Project with 10 year O&M in Kasaragod, Kerala on 31.12.2020 places / home town, posing a severe threat to pace of work and dedicated to the Nation by Hon’ble Prime Minister on progress at sites even after ease in Covid-19 Lockdown. 19.02.2021. • Deteriorating Financial Health of State DISCOMs: Inability • Development of Ultra Mega Solar Parks: THDCIL is in the for realization for power procurement, especially costly process to develop UMREPPs through SPV in the state of Uttar tied-up power. However, Govt. has taken some steps/ initiatives Pradesh. Formation of JV Company with equity participation in this matter during Covid-19 Lockdown. of THDCIL and UPNEDA in the ratio of 74:26 is under Cabinet approval of Govt. of UP . Total capacity of UMREPPs to be • Poor financial health of the Civil Contractors of Hydro Sector: developed is around 2000 MW. The experienced Contractors of Hydro Sector in India are striving with huge cash crunch. In addition, THDCIL is in the process of formation of JVC with Rajasthan Renewable Energy Corporation Ltd. (RRECL) for • Changing Market Scenario: Availability of cheaper Power in development of 1500 MW UMREPP in the state of Rajasthan. short term market. • Diversified in other emerging area: With enormous expertise • Regulatory Risks: One of the major risks is that Regulatory available and experience in treatment of chronic hill slope Authority may not consider the total incurred cost of the Project stabilization, THDCIL has completed various consultancy for tariff. Additionally, time to time changes in tariff regulations, projects and engineering solutions for other Govt. Organizations may also affect cash flows & operational profits. and more are in pipeline. • Climate Change Scenario: Global warming and Climate Change 3. THREATS are real time threats. There is definitive and predictable impact of the climate change phenomenon on the water availability in the • Cumbersome Procedure & Delay in Clearances: Capacity years to come. There is embedded threat of retreating glaciers, addition program of Hydro Projects gets badly affected due to change in precipitation pattern and change in sedimentation delay in obtaining environmental, forest and Wild Life clearances pattern, having adverse impact on the hydro power projects. for projects, due to existing stringent norms and cumbersome procedures of GoI. The opposition of Hydro Power Projects • Stringent Targets for Generation & PAF for Hydro Sector: on environmental, religious grounds and vested interests of Availability of monsoon inflow and Snow cover to some extent local communities, NGO’s and other agencies, delays Project decides the overall Performance of Hydro plants every year. Clearances and implementation. For speedy growth of Power Further, setting up stringent MoU targets every year, based on Sector, GoI should implement introduction of Single Window for higher than best in last 5 years, dilutes performance of Hydro various Statutory Clearances. CPSUs. This hurdles severely into the balance sheet as well as growth of Company. In addition, the big and hidden risk of increase in e-flow norms by enforcing agencies, is also leading risk of abandoning the Future Perspective: project, even after incurring huge project expenditure. The Government of India has identified power sector as a key • Geological uncertainties: Geological surprises in complex and sector of focus, to promote sustained industrial growth. The young Himalayan region create hindrances, which result in huge future outlook of the Company is on the Sustainable Development time and cost over-runs in Hydro Projects, viz-a-viz; increase in focused on: tariff. • Generation of Green, Renewable Power to protect the environment • Cumbersome Land acquisition process: Present land acquisition and safeguard the future. process for infrastructure work as well as project’s components including submergence is quite cumbrance and time consuming. • Innovation to promote the emergence of efficient, environmentally In fact, Project should be awarded, when all statutory clearances friendly technologies. and more than 80% of land acquisition is in place. 112 1. Expeditious completion of under construction projects without to mitigate risks on a short-term as well as long-term basis. Our any further time and cost overrun. assessment of risk considers both short and long-term risks, including how these risks are changing, together with emerging risk areas. The 2. Diversify company’s overall business development activities in risks are regularly monitored through reporting of key risk indicators of all source of energy. identified risks. The risk assessment and the action required to be taken are reported regularly to the Board of Directors. 3. Focused immensely to minimize outstanding dues of DISCOMs. INTERNAL CONTROL 4. To put on fast track, the Development of Mega Solar Parks in Uttar pradesh and Rajasthan. Additionally, to explore development of To ensure regulatory and statutory compliances as well to provide Solar Parks in other States. highest level of corporate governance, your Company has robust internal systems and processes in place for smooth and efficient 5. Explore green and untapped Hydro Power sources in Uttarakhand conduct of business and complies with relevant laws and regulations. A as well as different parts of country. comprehensive delegation of power exists for smooth decision making which is periodically reviewed to align it with changing business 6. In line with emphasis of Govt. of India for Geo-Strategic reach, environment and for speedier decision making. Elaborate guidelines explore business possibilities in rest of the World. for preparation of accounts are followed consistently for uniform compliance. To ensure that all checks and balances are in place and RISK MANAGEMENT all internal control systems are in order, regular and exhaustive internal audits are conducted by experienced firms in close co-ordination with The growing opportunities in the power sector possess certain the Company’s own Internal Audit Department. Besides, the Company strategic, functional, and operational risks for the Company as it has a committee of the Board viz. Audit Committee to keep a close expands and diversifies. The company continues to focus on a system- watch on compliance with Internal Control Systems. based approach to Risk Management. To build a business portfolio that matches market opportunities and achieves the long-term objectives, CAUTIONARY STATEMENT A robust Risk Management has been embedded in the business Statements in the Management Discussion and Analysis and in the processes of your Company by setting up in compliance with provisions Directors’ Report, are “forward-looking” and progressive within the of the Companies Act and SEBI regulations Risk Management meaning of applicable laws and regulations. Actual results may vary Committee (RMC). The RMC is responsible for identifying, accessing, materially from those expressed or implied by the forward-looking and reviewing the risks and formulating action plans and strategies statements due to risks or uncertainties associated therewith. 113 Annexure–IV to the Directors’ Report ENERGY CONSERVATIONS MEASURES, TECHNOLOGY INNOVATION, ADAPTATION, ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO A. Energy Conservations Measures Energy conservation and energy management measures can reduce peak and average demand of energy. Conserve energy is important because it helps to safe guard the environment and its resources. Investment in energy conservation at the margin provides a better return than investment in energy supply. THDCIL believes in efficient use of electricity as a way to reduce demand. THDCIL is focusing on energy efficiency programs, within the Company. The Company is engaged in the continuous process of further energy conservation through improved operational and maintenance practices and also undertaken effective measures to minimize energy consumption and the measures have resulted/ will result in the consumption of power, fuel and coal, ultimately resulting in savings in energy. The following actions have been taken towards conservation of energy during last year:- The steps (i) Work of replacement of non-energy efficient light fixture (i.e. Old bulbs with LED bulbs including street light) taken for in all office buildings complex of THDCIL, Rishikesh has been completed. impact (ii) Operation and Maintenance of the 500 KW roof top solar power plant has been done successfully and conservation of energy amounting to ` 2.39 lakhs has been saved by UPCL towards export of supply to the grid for 12 energy. months besides own consumption for the FY 21-22. (iii) All new buildings have already provision of LED Lights. (iv) Maintenance/renovation work of electrical distribution system for non-residential buildings has been taken up with LED lights. (v) Non-residential buildings have been provided with five star rated Air conditioners were replaced from non- star rated to five star rated. The steps Park area lighting and fencing of office and residential area has been done through Solar System. taken by the All the new buildings are equipped with day light provision to use day light properly. Automatic Company Power factor controller has been installed to improve Power supply system and to reduce the for utilizing losses. Implementation of above measures has reduced the Consumption of units by 12-14%. alternate The company is using and promoting use of LED Lamps and efficient use of energy in all its future sources of Installations energy. The capital investment on energy conservation equipment. During the year the Company has not made any major investment on the energy conservation equipment. 114 B. TECHNOLOGY INNOVATION, ADAPTATION AND Performance Properties Test Units Typical Roll Value ABSORPTION Method 1. Application of 3D Net & Hydro seeding on Soil Slopes Flume kN/ 0.16 Unvegetated test m2 3D Net Flume --- 0.022 - 0.042 Manning’s n Range test (i) Abstract (iii) Methodology for Installation 3D Net is a lightweight three-dimensional turf reinforcement mat (TRM) made of continuous monofilaments used at their a) Site Preparation: Whether slope or channel, the applicator intersections. 3D nets are made of polyamide (nylon) filaments has the responsibility that site must be shaped to the design thermally fused at their intersections to create a homogeneous specifications (grade, geometry, density of soil, etc.) and then matrix. 3D nets are used for following stabilization works; dressed to be free of soil clods, clumps, rocks, or vehicle imprints of any significant size that would prevent the TRM from i) Permanent erosion control for vegetated channels and banks lying flush to surface contours. with expected shear stresses ≤ 3.3 psf. b) Anchor Trench: Anchor trenches shall be required to securely ii) Permanent erosion control for moderate to steep slopes fasten the 3D Net to the ground surface. In channel applications, (≤1H:1V). the initial anchor trench shall be installed at the beginning iii) Support and enhance performance of ecosystem plants. of the channel and intermediate check slots are spaced at approximately 25 feet intervals downstream depending on flow It is designed in such a way that the 95% percent of its matrix conditions and whether the soil filled or not. 3D net should be remains as open space, which is further supplemented with installed into the bottom of the trench and fastened with pins nature’s own erosion control system by reinforcing plant root spaced 3 feet apart. The anchor trench / intermediate check systems. The system when fully vegetated shall withstand water slots shall be then backfilled and compacted in a manner as to velocities greater than 20 feet per second and shear stresses of not damage the 3D Net. 10 pounds per square foot. (ii) Technical Parameters of 3D Net The applicator shall ensure that the 3D Nets shall meet following technical parameters. Mechanical Properties Test Units Roll Value Method Typical MARV ASTM kN/m 2.5 2.2 Tensile Strength D6818 ASTM mm 10 7.5 Thickness D6525 ASTM g/m2 270 220 Mass/Unit Area D6566 ASTM % 80 @ 2000 hours UV Stability D4355 Resiliency ASTM % 80 Fig.-1-Typical Layout of 3D Net D6524 (iv) 3D Net Installation Procedures: Roll the 3D Net down the slope Performance Properties Test Units Typical Roll Value or channel. The overlap between rolls should be 3 to 4 inches. Method The splice between rolls shall be between 2 and 3 feet. Shingle Permissible Velocity the roll in the direction of water flow. Install pins down the center of each mat (mat is 3.25 feet wide) staggering them between the Flume m/s 3.7 outside pins with a spacing interval of 3 to 5 feet. Pins patterns will Unvegetated test vary depending upon application, soil type, slope or channel slope, Permissible Shear Stress 115 geometry, etc. A rule of thumb for estimating the amount of pins hydroseeder. A hydroseeder is a machine that attaches a nozzle, required for a project is as below which the applicator shall follow:- pump and hose to a holding truck. The thick slurry is sprayed using a hydroseeder saves both time and money when repeated ü For 1:1 to 2:1 slopes, 3-4 pins per sq. yd. applications are needed in the same area. The application should ü For 3:1 and lesser slopes 2-3 pins per sq. yd. be such that the end product must form a blanket within 2 hours of application, and soil erosion must be controlled after 2 hours ü High flow channel, 3-4 pins per sq. yd. of application. ü Low flow channel, 2-3 pins per sq. yd. (iii) Right Mix Always install two rows of pins spaced 1.5 x 1.5 feet apart at all roll It is important to have a right mixture of compatible seeds, splice locations. mulch, fertilizers, activators and water in a hydroseeder tank to form thick slurry. This should be later applied with pressure using (v) Anchoring Devices: Typically 8 gauge of a 6” x 1” x 6” metal pins a Hydroseeder to the slope surface by a 100psi pressure pump. shall be used. When surface soil conditions are loose, use 8” x 1” x 8” or 12” x 1.5” x 12” metal pins, 8” - 18” pins with 1.5” diameter (iv) Methodology for Installation washer, or 12-30” J-Shape pins (bent rebar) having a ¼” diameter. a) Site Inspection: before commencing the hydroseeding, it is Drive pins or pins flush with the ground surface. essential to inspect the site to collect following information by the executing agency;- • Erosion potential and soil types • Slope condition: Measurements, condition and elevation etc. • Availability of water, local seeds etc. • Plans regarding permanent vegetation and total area calculation b) Slope preparation: the applicator has the responsibility to follow laid down steps in order to ensure maximum effectiveness of application;- • Remove all stones, rocks or other debris from site. Fig.-2- Installation Profile View • Filling low-lying areas. • Addition of topsoil or the modification of existing soil. HYDRO SEEDING • Surface contouring and smoothing. (i) Abstract • Stabilize the slopes using reinforcements such as wire-mesh, Hydroseeding is an accelerated planting process that uses anchors, coconut fibre, geo mats etc. mix of right seeds, mulch, fertilizers and activators mixed with water in a hydroseeder tank to form a thick slurry. Hydroseeding c) Maintenance : for three months (watering 2-3 times a day after has become increasing popular, over shadowing both hand 24 hours of hydroseeding) or till propagation of grasses and seeding and sod, for a wide array of job sites and applications. shrubs shall be the responsibility of the applicator. It is very helpful in places like hill slopes for erosion control and (v) Environment Performance quick plantation. This shall be applied with pressure using a hydroseeder to the slope surfaces. It can be completed in very The applied hydroseeds on the slopes should not only lead to short time period. Besides above, hydroseeding could be laid sustainable vegetation, but also enhance the natural environment. down faster and has lower installation cost, it also minimizes soil In order to maintain the ecosystem, the hydroseeds must meet loss and turbidity of effluent runoff. the following tests. In order to restore the natural slope and stabilize soil slopes, • Should be 100% biodegradable as verified by ASTM test method Hydroseeding provides a wholesome slope treatment. D5338. Hydroseeding is suitable for soil disturbed areas requiring • Product should be 100% recycled (verified via ISO 14021), temporary protection until permanent stabilization are established phyto-sanitized wood fibres which are heated to 3800 during naturally. Hydraulically applied mulch has following properties thermally refined processing, making them weed and pathogen after its application; free. - Should be immediately effective upon application-bonds directly • Should be non-toxic to aquatic. to soil • Should not contain excessive heavy metals. - Should have superior erosion control • Should not have nets or threads to endanger wildlife. - Faster vegetation establishment and greater biomass production (vi) Technical Parameters of Hydroseeds (ii) Application The applicator shall be ensure that the flexible growth medium Spraying of the mixture shall be done with the help of a (Hydroseeds/Mulch) shall meet following technical parameters. 116 TECHNICAL DATA FOR HYDROSEED/MULCH 1 PHYSICAL PROPERTIES* TEST METHOD UNITS MINIMUM VALUE Mass/Unit Area ASTM D65661 g/m2 407 Thickness ASTM D65251 mm 5.6 Wet Bond Strength ASTM D68181 N/m 131 Ground Cover ASTM D65671 % 99 Water-Holding Capacity ASTM D7367 % 1700 Material Color Observed n/a Green 2 ENVIRONMENTAL ROPERTIES* TEST METHOD UNITS TYPICAL VALUE Biodegradability ASTM D5338 % 100 Functional Longevity ASTM D5338 n/a Up to18 months Eco-toxicity EPA 20021.0 % 96-hr LC50>100% Effluent Turbidity Large Scale NTU <100 (vii) Application & Adaption 2. Concrete Canvas (CC)/(Geosynthetic Cementitious Composite Mats) The system was proposed for the treatment of overburden slope on the stretch of slide no. 5A lies on Karnprayag-Gwaldam- (i) Functions: Concrete canvas (CC), is a flexible, concrete Jauljivirajya Motor Marg No -11(Km 166) – Hardiyanala which is impregnated fabric that hardens when hydrated to form a thin, located @ 1 km away from Nachani Village towards Munsiyari durable, water proof and fire-resistant concrete layer. Concrete over Bageshwar - Munsiyari Road in district Pithoragarh of canvas concrete does not require plant or mixing equipment as it Uttrakhand. The system was proposed on the terraced slope is positioned on surface and added with water. Concrete canvas after off-loading of the overburden mass in 2-5 m depth & 3.0 m consists of a 3-dimensional fibre matrix containing a specially wide berms/benches created on the mid-stretch above the road, formulated dry concrete mix. A PVC backing on one surface where there is loss of shear strength because of large shear of the Canvas ensures the material is completely water proof. deformations or even flow failure under moderate to high shear The material can be hydrated either by spraying or by being fully stresses beneath the surface and on sloping ground. The DPR immersed in water. Once set, the fibres reinforce the concrete, was concurred & financed by NDMA. preventing crack propagation and providing safe plastic failure The slope has been stabilised with provisions of 8m deep, mode. 24 mm dia soil nails of 10 MT capacity at a spacing of 3.0 m c/c. Thereafter, provisions of 3D Net & application of hydroseeds (ii) Applications: Concrete canvas is typically used to replace along with drainage channel by horizontal drains along benches conventional concrete (in-situ, precast or sprayed) for erosion was done. The photographs of stabilised slope is shown below control, remediation and construction applications. Concrete in pictures; Canvas is available in 3 thicknesses: CC 5, CC 8 and CC 13, which are 5, 8 and 13 mm thick respectively. Concrete Canvas Hydro, which includes a PVC backing membrane, is also available for hydrocarbon applications. It is also available in three formats, man portable Batched Rolls, Bulk Rolls and Wide Rolls. Stabilised Slope with Soil Nail, 3D Net & Hydroseeding 117 Concrete Canvas is used in a variety of civil infrastructure applications, i.e. Channel/Ditch Lining, Slope Protection and stabilization, Bund Lining, Concrete Remediation, Weed Suppression, Culvert Lining, Outfall/Spillway Protection, Gabion Protection, Mining Vent Walls, Pipe Protection etc. (iii) Properties/ Type of Concrete Canvas: Concrete Canvas of various thicknesses is available as under. Product Thickness Roll Width Dry Weight Bulk Roll Bulk Roll Density (unset) Density (set) (mm) (m) (kg/m2) Coverage (m2) Length (m) (kg/m3) (kg/m3) 5 1.0 7 200 200 1500 +30-35% 8 1.1 12 125 114 1500 +30-35% 13 1.1 19 80 73 1500 +30-35% (iv) Selection of Concrete Canvas: • Culvert Lining: 8 mm thick Concrete canvas is recommended for normal conditions. 13 mm thick may be used for high flow • Ditch Lining: 8 mm thick Concrete canvas is generally conditions or with high levels of debris. 5 mm thick may be used recommended, unless either of the following conditions prevail: for low flow conditions and low levels of debris. - 5 mm thick Concrete canvas may be used for relining • Bund Lining: 5 mm thick Concrete canvas is recommended. existing concrete channels, hard substrates such as rock, or for 8 mm or 13 mm thick Concrete canvas may be used for heavy temporary works. traffic areas. - 13 mm thick Concrete canvas may be used where flow (v) Installation Procedures: speeds are in excess of 8.6m/s, the ground is trafficked or is particularly unstable or steep. Concrete Canvas is available in man portable rolls eliminating the need for plant on site and allowing concrete installation in • Slope Protection: 5 mm thick Concrete canvas is recommended, areas with limited access. Prior to hydration, Concrete Canvas unless ground is unstable or high flow conditions exist. In such layers can be cut to length using basic hand tools eliminating cases, 8 mm thick Concrete canvas may be used. the hazards associated with using power tools in high risk environments. The concrete is pre-mixed so there is no need • Outfalls/ Spillways: 8 mm thick Concrete canvas is for mixing, measuring or compacting. Just add water. Once recommended in general. However in case of outfalls with a high hydrated, CC remains workable for approximately 1-2 hours in level of debris or with high flow conditions, 13 mm thick oncrete cold climate. In warm climates, working time may be reduced. canvas may be used. CC will harden to 80% of its 28 day strength in 24 hours and is • Concrete Remediation: 5 mm thick Concrete canvas is ready for use. recommended in general conditions. However, 8 mm thick (vi) Adaption Concrete canvas may be used where voids are large or end use involves high flow rates. The system has been proposed to be installed on the vertical slopes of Chinyalisaur- Priority-IV works. • Weed Suppression: 5 mm thick Concrete canvas can be used. 118 3. Adoption of time and cost-effective techniques RE wall have many advantages such as, flexibility, very high resistance to sliding, ease of construction, better appearance compared to In order to save time and cost, THDCIL is using many new innovative concrete walls, faster construction and considerable cost saving when methods for Civil Construction at its projects. One such method is compared with concrete (cast-in-place) wall. The flexibility of wall currently being used at VPHEP for construction of a retaining structure makes it a good choice for earthquake prone areas. It is also very i.e. using Reinforced Earth (RE) Wall. suitable for the locations where the height of the structure is very high. And where the requirement of additional space is there. A reinforced earth wall is designed and constructed to resist the lateral pressure of the soil and supports the soil laterally. The lateral pressure The slope between CISF colony and TBM road in VPHEP is very could be due to earth filling, water pressure, sand, and granular unstable having slope wash material with very less shear strength. The materials. The walls are used to bound soils between two different height of the slope is around 50 m. There is also a requirement of elevations often in areas of terrain possessing undesirable slopes. creation of additional space for Parade ground and other activities. To protect the CISF colony and to create additional space there, a RE wall Reinforced Earth wall is a simple structure formed by select backfill, has been designed. The typical section of the RE wall designed for this galvanized steel wire mesh, Geosyntetic reinforcement (Geogrid) slope is shown at used as reinforcement to generate friction on the soil. Proper drainage system is provided to help avoid built up of hydrostatic pressure behind the wall. The facia of a RE wall help to prevent the erosion of the backfill and give it a pleasing appearance. Fig. 1. At present the RE wall construction is in progress at site (Image 1). The total height of designed RE wall is 49.2 m, consisting of 4 tiers environment friendly look. of RE walls of 10.8 m each with. The length is 180 m. The facia for RE wall at VPHEP consists of geotextile wrap around vegetative soil Thus, this innovative design solution is stable, faster, cost effective, which will enable growth of grass in the face of wall, giving it a pleasing environment friendly and has aesthetic value. 119 Fig:1 – Cross Section of RE Wall Image: 1 – Present Status of RE Wall Early Warning System for VPHEP Phase will include meteorological forecast system (based on Automatic In the wake of flash floods that took place in the Chamoli District of Weather Stations (AWS) input) as well as inflow-based forecasting Uttarakhand on 7th Feb’ 2021, a committee was constituted by Ministry system. This will include installing real time flood forecasting system of Power for Short Term & Long-Term Weather Forecast and Early with the help of Automatic Weather Stations (AWS)/ G&D Sites/Radar Warning System (EWS) to be put in place in the Hilly Regions for based level sensors in the upstream of the project sites with SCADA mitigating the effects of Natural Calamities. The committee submitted based monitoring system, to provide flood forecast/early warning with its report in the month of July’2021 and recommended wide array of sufficient lead time through fail-proof communication mechanism suggestions to implement the EWS in all operational as well as under- (GSM/VSAT etc.) to the Control Room at dam site and Central Control construction hydro projects. and Command Centre at project headquarter. The system will be capable to observe real time meteorological and hydrological data and Accordingly, an Early Warning System for VPHEP has been conceived transmits the same to Control room and Central Control and Command and work is going on at the project to implement the same. The EWS at Station (CCCS) for further processing/ forecasting the inflow using the project shall be implemented in two phases. In phase-I short term some mathematical models. The system will issue forecasts with measures shall be implemented and in Phase-II, long term measures minimum 6 hours lead time, based on observed data and day ahead shall be implemented. forecasts based on IMD forecasts. The lead time for the early warning Phase I – Short Term Measures based on inflow data will be at least 50 minutes. The Control Room (CR) and CCCS will have the ability to sound the alert at the touch Tapovan Vishnugad Hydro Electric Project (TVHEP) is located on of a button, in the project area along the length of the river and also river Dhauliganga and Vishnuprayag Hydro Electric Project (VHEP) is other vulnerable underground and over-ground sites using hooters located on river Alaknanda in the upstream of VPHEP . The Barrage of and sirens. CR and CCCS will have live connectivity with design TVHEP is approximately 21 km upstream of VPHEP Dam site while headquarters, other nearby upstream/downstream Hydro Projects and the barrage of VHEP is 27 Km upstream of the VPHEP Dam site. If with the emergency operational control room of the respective District/ any flood event occurs in Dhauliganga or Alaknanda valleys, VPHEP State administration. will have at least 50 minutes lead time (considering the time taken in 7th Feb. 2021 event). To observe real time meteorological and hydrological data installation of Data Collection Platform (DCP) consisting of Automated Weather The EWS in Phase-I, will essentially be based mainly on the inflow- Station (AWS), G&D sites and Radar based level and velocity sensors, based forecasting system. A 24 x 7 surveillance system will be created will be taken up to cover the river valleys in the entire catchment area for the Project. This will be both manual and technologically assisted to of the project. In case of VPHEP , the upstream projects will be installing acquire information of any development in the upstream of the project the AWS and G&Ds in their catchment area, VPHEP will only required and in the Birahi Ganga valley which may threaten human elements to be in live connectivity with the control rooms of upstream projects working at the project or in the nearby villages in the downstream. The of TVHPP and VHEP for data collection. Establishment of Automatic system will possess a fail proof way of communicating the acquired water level recorder (AWLR) and gauge station in Birahi Ganga will, information with the Control Room of the Project through satellite however, be done by VPHEP . The transmission of data from DCPs phone or any other means like mobile phones. will be done through an all-weather, reliable, fail-proof and robust The Control Room set up at the Dam site will have the ability to sound communication system in real-time through GSM or VSAT connectivity and alert at the touch of a button, to all the construction site of the to the designated control room. project nearby riverbanks. A Central Control and Command Station Installation of GSM/VSAT based alarm/siren/hooter system along the will be established at project headquarter for further processing and river up to downstream project at Srinagar will also be done by the dissemination of information to downstream projects, District Disaster project to safeguard the downstream areas. Control Room and State Disaster Control Room. Mapping/digitization of the entire catchment area is also planned at Phase II – Long Term Measures later stage in collaboration with all upstream and downstream projects In phase-II, long term measures will be implemented at the project. This and with the help of CWC. 120 Satellite Based Inflow Forecasting C. FOREIGN EXCHANGE EARNINGS AND OUTGO (` in crore) PARTICULARS 2021-22 2020-21 A Expenditure in Foreign Currency (on cash basis) Travelling 0.01 0.01 Consultancy & Professional Expenditures 1.83 2.11 Repayment of loan & Interest 50.83 48.67 Import of goods 8.34 46.78 Nomination for Conference - - Others ( Payment to contractors against works & supplies) 260.98 62.63 TOTAL 321.99 160.20 B Earnings in Foreign Currency (on cash Basis) - - C Value of Imports calculated on CIF basis i) Capital Goods 7.29 49.31 ii) Spare parts - - Total 7.29 49.31 D Value of Components, Stores & Spare parts Consumed i) Imported (in crores) 0.14 0.10 (%) 2.35% 2.46% ii) Indigenous (in crores) 5.81 3.97 (%) 97.65% 97.54% E Value of Export - - 121 Annexure–V to the Directors’ Report BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT 2021-22 122 BUSINESS RESPONSIBILITY & SUSTAINABILITY REPORT-2021-22 OVERVIEW The top 1,000 listed companies in India are required to furnish initiatives taken by them from an Environmental, Social and Governance (ESG) perspective, in the format as specified by the Securities and Exchange Board of India (SEBI) in Business Responsibility Report (BRR). As a Good Corporate Governance practice, THDC India Limited, has adopted the new reporting template as recommended by SEBI to report Business Responsibility and Sustainability practices. THDCIL has set the right processes and systems across functions and has prioritised the key metrics based on BRSR that are relevant and useful to measure their sustainability score, so as to gather, compile and report on the relevant indicators. THDCIL is driven by solution centric approach and powered by knowledge. Our endeavour is to bring the right balance of the head-heart-hand to our work. It is our belief that age-old problems need new-age thinking and rigorous hard work, with empathy at the core. And that’s what THDCIL deliver for its stakeholders. Our carbon footprint has a negative impact on the environment in multiple ways: It is the main cause of human-induced climate change, it contributes to urban air pollution, it leads to toxic acid rain, it adds to coastal and ocean acidification, and it worsens the melting of glaciers and polar ice. Reaching sustainable emissions in the future can be viewed as a need to systematically reduce the carbon intensity of energy production. Capital markets are starting to reward companies making systematic investments in climate change and sustainability efforts by pushing their stock prices higher. Investors are increasingly using non-financial disclosures to make investment decisions, which in turn is the reason many companies have moved towards integrated financial reports. The Business Responsibility & Sustainability Report-2021-22 of THDCIL showcases the interdependence of the Company’s business activities with the environment and community. SECTION - A: GENERAL DISCLOSURES I. Details of the listed entity 1. Corporate Identity Number(CIN) of the Entity U45203UR1988GOI009822 2. Name of the Listed Entity THDC INDIA LIMITED (not Listed till date) 3. Year of incorporation 1988 4. Registered office address THDC India Limited, Bhagirathi Bhawan, Bhagirathipuram, Top Terrace, Tehri Garhwal-249 001 (Uttarakhand) 5. Corporate address THDC India Limited, Ganga Bhawan, Bypass Road, Pragatipuram, Rishikesh-249201 (Uttarakhand) 6. E-mail cmd@thdc.co.in 7. Telephone 0135-2473311 8. Website www.thdc.co.in 9. Financial year for which reporting is being done 2021-22 10. Name of the Stock Exchange(s) where shares are listed NA 11. Paid-up Capital ` 3665.88 Cr. (as on 31.03.2022) 12. Name and contact details (telephone, email address) of Shri. B.K. Garg, AGM (Plg.), the person who may be contacted in case of any queries THDC India Limited, on the BRSR report NCR Office, Plot No. 20, Sector 14, Kaushambi, Ghaziabad-201010 (U.P) (email- bkgarg@thdc.co.in, Tel - 0120 - 2776491) 13. Reporting boundary - Are the disclosures under this report made on a standalone basis (i.e. only for the entity) or on a consolidated basis (i.e. for the entity and all the entities which form a part of its consolidated financial statements, taken together) : Consolidated 123 II. PRODUCTS / SERVICES 1 Permanent 813 762 93.73% 51 6.27% 14. Details of business activities (accounting for 90% of the (D) turnover): 2 Other than 14 9 64.29% 5 35.71 S. No. Description of Description of % of Turnover Permanent Main Activity Business Activity of the entity (E) 1. Power Generation and Sale of 100 3 Total 827 771 93.23% 56 6.77% Generation Electricity from Hydro, employees Wind and Solar Power (D + E) Plants WORKERS 4 Permanent 831 775 93.26% 56 6.74% 15. Products/Services sold by the entity (accounting for 90% of (F) the entity’s Turnover): 5 Other than 5990 5737 95.78% 170 2.84% S. No. Product/Service NIC Code % of total Permanent Turnover (G) contributed 6 Total 6821 6512 95.47% 226 3.31% 1. Electric Power 3510 100 workers (F+G) III. OPERATIONS 16. Number of locations where plants and/or operations/offices of b. Differently abled Employees and workers: the entity are situated: Location Number of plants / Under Number Total S. Particulars Total Male Female Construction / Development of No. (A) Projects offices National 14 11 (other 25 No. (B) % (B/A) No. %(C/A) than (C) project DIFFERENTLY ABLED EMPLOYEES offices) 1 Permanent 09 08 88.89% 01 11.11% International Nil Nil Nil (D) 17. Markets served by the entity: 2 Other than Not Available Permanent THDCIL is engaged in generation of electricity. Electricity is (E) supplied to States Distribution Companies (DISCOMs). 3 Total 09 08 01 a. Number of locations: differently abled Locations Number employees National (No. of States) 11 (D+E International (No. of Countries) Nil DIFFERENTLY ABLED WORKERS 4. Permanent 18 15 83.33% 03 16.67% b. What is the contribution of exports as a percentage of the total (F) turnover of the entity? NIL 5. Other than Not Available c. A brief on types of customers–Electricity is supplied to Nine permanent States of Northern Region, Gujarat and Kerala. (G) 6. Total 18 15 83.33% 03 16.67% IV. EMPLOYEES differently 18. Details as at the end of Financial Year: abled workers a. Employees and workers (including differently abled): (F + G) S. Particulars Total Male Female No. (A) 19. Participation / Inclusion / Representation of women : No. and percentage No. % No. (C) %(C/A) Total (A) of Females (B) (B/A) No. (B) % (B / A) EMPLOYEES Board of Directors 2 Nil Nil Key Management Personnel 3 1 33.33% 124 20. Turnover rate for permanent employees and workers (Disclose trends for the past 3 years) FY 2021-22 FY 2020-21 FY 2019-20 (Turnover rate in current FY) (Turnover rate in previous FY) (Turnover rate in the year prior to the previous FY) Male Female Total Male Female Total Male Female Total Permanent Employees Retired 42 1 43 22 0 22 15 1 16 Resigned 5 - 5 5 1 6 8 3 11 Retired 40 1 41 59 7 66 35 7 42 Resigned 2 - 2 0 0 0 0 0 0 V. HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES (INCLUDING JOINT VENTURES) 21. (a) Names of holding / subsidiary / associate companies / joint ventures S. Name of the holding / Indicate whether holding/ % of shares held Does the entity indicated at column A, No. subsidiary / associate Subsidiary/ Associate/ by listed entity participate in the Business Responsibility companies / joint ventures (A) Joint Venture initiatives of the listed entity? (Yes/No) 1. NTPC Limited Holding Company 74.49 Yes 2. TUSCO Limited Joint Venture 74.00 No VI. CSR DETAILS 22. (i) Whether CSR is applicable as per section 135 of Companies Act, 2013:(Yes) (ii) Turnover (in `):- (Total Revenue)- ` 1921.49 Cr. (iii) Net worth (in `):- ` 10306.15 Cr. VII. TRANSPARENCY AND DISCLOSURES COMPLIANCES 23. Complaints/Grievances on any of the principles (Principles 1 to 9) under the National Guidelines on Responsible Business Conduct: Stakeholder Grievance Redressal FY 2021-22 FY 2020-21 group from Mechanism in Place Current Financial Year Previous Financial Year whom (Yes/No)(If Yes, then complaint is provide web-link for Number of Number of Remarks Number of Number of Remarks received grievance redress policy) complaints complaints complaints complaints filed pending filed during pending resolution during the resolution at the year at year close of the year close of the year Communities Yes Nil Nil - 04 04 - www.thdc.co.in Investors Yes NA NA - NA NA - (other than https://scores.gov.in/ shareholders) admin/Chk_login.html Shareholders Yes NIL NIL - NIL NIL - https://scores.gov.in/ admin/Chk_login.html Employees Yes 01 NIL - NIL NIL - and workers www.thdc.co.in Customers Through Annual Feedback NIL NIL NIL NIL NIL - form and one to one meeting with DISCOMs Value Chain Through interaction with NIL NIL NIL NIL NIL - Partner contractors & Suppliers 125 24. Overview of the entity’s material responsible business conduct issues Please indicate material responsible business conduct and sustainability issues pertaining to environmental and social matters that present a risk or an opportunity to your business, rationale for identifying the same, approach to adapt or mitigate the risk along-with its financial implications, as per the following format: S. Material issue Indicate Rationale for In case of risk, approach to adapt or mitigate Financial implications No. identified whether identifying the risk of the risk or risk or / opportunity opportunity (Indicate opportunity positive or negative (R/O) implications) 1 Disposal of Ash Opportunity Opportunity Fly ash is a by-product of Thermal Power Plant. As per the market current Now, fly ash is Therefore, opportunity to its 100% utilization in trend considering the fly being used in manufacturing industries can be realized as a revenue ash rate as ` 500 per cement industries potential. During the operation of Khurja Plant about MT (which may vary at and other 56.8 million cum ash is expected to be produced in 25 the time of actual sale), construction years. Since the project is in construction phase and the tentative financial material with regard to the present status of market demand implication comes to manufacturing in the F.Y. 2024-25 an EOI was invited by THDCIL. the tune of ` 120 Cr. per industries as a According to the preliminary assessment, around annum. main raw material. 24 Lac MT plus per annum requirement has been envisaged from the two industries. 2 Instability/ Risk Based on previous/ Providing stabilization measures, dumping of muck in Delay in construction Improper working experience planned manner and utilization of space in optimum resulting increase in disposal of way as per contarct conditions and technical completion cost of muck and non specifications. project. availability of space in dump yard SECTION- B: MANAGEMENT AND PROCESS DISCLOSURES This section is aimed at helping businesses demonstrate the structures, policies and processes put in place towards adopting the NGRBC Principles and Core Elements. Disclosure Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 Policy and management processes 1a Whether your entity’s policy/ Y Y Y Y Y Y Y Y N policies cover each principle and its core elements of the NGRBCs. (Yes/No) 1b Has the policy been approved by Y Y Y Y Y Y Y Y N the Board? (Yes/No) 1c Web Link of the Policies, if * * Not * * * Not * - available on on Web Web 2. Whether the entity has translated Y Y Y Y Y Y Y Y N the policy into procedures. (Yes / No) 3 Do the enlisted policies extend to your value chain partners? (Yes/No) 4 Name of the national and international codes/certifications/labels/ standards (e.g. Forest Stewardship Council, Fairtrade, Rainforest Alliance, Trusteea) standards (e.g. SA 8000, Please refer Table-1 below OHSAS, ISO, BIS) adopted by your entity and mapped to each principle. 5 Specific commitments, goals and targets set by the entity with defined timelines, if any. 126 6 Performance of the entity against All the statutory guidelines are complied with. Responsibilities are fixed as per Table-1. the specific commitments, goals and targets along-with reasons in case the same are not met. Governance, leadership and oversight 7 Statement by Director responsible for the business responsibility report, highlighting ESG related challenges, targets and achievements (listed entity has flexibility regarding the placement of this disclosure) 8 Details of the highest authority responsible for implementation NA and oversight of the Business Responsibility policy (ies). 9 Does the entity have a specified Committee of the Board/ CSR and sustainability Committee which is operating at Board Director responsible for decision making on sustainability level is also reviewing sustainability issues related issues? (Yes / No). If yes, provide details. 10 Details of Review of NGRBCs by the Company: Subject for Review Indicate whether review was undertaken Frequency (Annually/ Half yearly/ by Director / Committee of the Board/ Any Quarterly/ Any other – other Committee please specify) P1 P2 P3 P4 P5 P6 P7 P8 P9 P1 P2 P3 P4 P5 P6 P7 P8 P9 Performance against above Satisfactory. Performance is measured by As and when required. policies and follow up action way of submission of compliance report. Compliance with statutory Y Y Y Y Y Y Y Y As and when required. requirements of relevance to the principles, and, rectification of any non-compliances 11 Has the entity carried out independent assessment/ evaluation of the working of its No policies by an external agency? (Yes/No). If yes, provide name of the agency. 12. If answer to question (1) above is “No” i.e. not all Principles are covered by a policy, reasons to be stated: Questions The entity does not consider the Principles material to its business THDCIL does not have any policy for Principle-9. The policy seems (Yes/No) not to be required. The entity is not at a stage where it is in a position to formulate and Detailed description placed at Table-1 below. implement the policies on specified principles (Yes/No) The entity does not have the financial or/human and technical resources available for the task (Yes/No) It is planned to be done in the next financial year (Yes/No) Any other reason (please specify) * Environment Policy is available on: * Corporate Ethics Policy is available on: https://thdc.co.in/content/environment-policy https://thdc.co.in/sites/default/files/Corporate_Ethics_Policy.pdf * R&R Policy is available on: * Whistle Blower Policy is available on: https://thdc.co.in/content/rr-policy https://thdc.co.in/sites/default/files/WhistleBlowerPolicy.pdf * CSR & Sustainability Policy is available on: https://thdc.co.in/sites/default/files/CSR_Policy2021.pdf * Code of Business Conduct and Ethics is available on: https://thdc.co.in/sites/default/files CodeBusinessConduct& * CSR Communication strategy of THDCIL is available on: Ethics.pdf https://thdc.co.in/sites/default/files/CSR_CommuStrategy.pdf * Vision, Mission and values of THDCIL are available on: https://thdc.co.in/content/visionmissionvalues 127 Table -1 Principle Description Policy / Policies Director(s) No. Responsible Principle 1 Businesses should conduct and govern themselves • Vision, Mission and Values Director (Finance) (P1) with integrity, and in a manner that is ethical, • Conduct Discipline and Appeal Rules Director (Personnel) transparent, and Accountable. • Standing orders for workmen Director (Technical) • Corporate Ethics Policy • Code of Business Conduct and Ethics • CDA Rules • Whistle Blower Policy • Integrity Pact • Record Management Manual of THDCIL • Training Policy for Directors of THDCIL. Principle 2 Businesses should provide goods and services in a Safety Policy Director (Technical) (P2) manner that is sustainable and safe. CSR & Sustainability Policy ISO 45001:2018 Principle 3 Businesses should respect and promote the well- HR Policies Director (Personnel) (P3) being of all employees, including those in their Placement and transfer Policy value chains. Principle 4 Businesses should respect the interests of and be R & R Policy Director (Technical) (P4) responsive towards all its stakeholders. Vision & Mission Principle 5 Businesses should respect and promote human Vision, Mission & Values HR Policies Director (Personnel) (P5) rights. Principle 6 Business should respect and make efforts to Environment Policy Director (Technical) (P6) protect and restore the environment. ISO 14001:2015 (EMS) Principle 7 Businesses, when engaged in influencing public • Code of Conduct Director (Technical) (P7) and regulatory policy, should do so in a manner • Core Value Director (Personnel) that is responsible and transparent Director (Finance) Principle 8 Businesses should promote inclusive growth and CSR & Sustainability Policy Director (Technical) (P8) equitable development. CSR Communication Strategy Principle 9 Businesses should engage with and provide value All the core elements identified under Principle-9 are duly followed by (P9) to their consumers in a responsible manner. THDCIL through its commercial procedures. However, THDCIL feels that a separate policy on Principle 9 is not required because: • THDCIL supplies electricity to the beneficiaries (bulk customers), majority of which are owned by respective State Government. • Allocation of Power is made by Ministry of Power, Govt. of India based on certain policies and guidelines. • Power Tariff for Hydro Power Projects of THDCIL is determined by Central Electricity Regulatory Commission (CERC) engaging all stakeholders. • Tariff for Renewable Energy Projects is decided as per the mutual agreement between THDCIL and individual beneficiary State. • Issues, if any, are discussed and resolved at common forums like Northern Regional Power Committee (NRPC), where Bulk Customers and generators are members. • Separate feedback is obtained from customers (beneficiaries) to understand their needs and expectations. SECTION - C: PRINCIPLE WISE PERFORMANCE DISCLOSURE This section is aimed at helping entities demonstrate their performance in integrating the Principles and Core Elements with key processes and decisions. The information sought is categorized as “Essential” and “Leadership”. While the essential indicators are expected to be disclosed by every entity that is mandated to file this report, the leadership indicators may be voluntarily disclosed by entities which aspire to progress to a higher level in their quest to be socially, environmentally and ethically responsible. 128 PRINCIPLE 1 Businesses should conduct and govern themselves with integrity, and in a manner that is Ethical, Transparent and Accountable. 1. Percentage coverage by training and awareness programmes on any of the Principles during the financial year: Segment Total number Topics / principles covered under the %age of persons of training and training and its impact in respective awareness category programmes covered by held the awareness programmes Board of Directors 02 • Leadership Management & Wellness 57.13% • Familiarization Program for Independent Directors Key Managerial Personnel 01 • MDP on Industry 4.0 33.33% • Women Development Training • Transformational Leadership Employees other than 14 • Visioning the future Organizational effectiveness 19.21% BoD and KMPs • Visionary Leadership • Vigilance Administration for vigilance officer • Preventive vigilance for non-vigilance officers • Certified trainers’ program on POSH • Public procurement thru GeM portal • Improving personal & professional Excellence • Leadership Management & Wellness • Symposium on RTI Act • Preventive vigilance • EDP-The career journey to personal effectiveness & leadership • Leadership excellence • Provision & principle of Natural Justice • Standing order & disciplinary proceedings Workers 03 • Ethics & Values 10.22% 2. Details of fines / penalties /punishment/ award/ compounding fees/ settlement amount paid in proceedings (by the entity or by directors / KMPs) with regulators/ law enforcement agencies/ judicial institutions, in the financial year, in the following format (Note: the entity shall make disclosures on the basis of materiality as specified in Regulation 30 of SEBI (Listing Obligations and Disclosure Obligations) Regulations, 2015 and as disclosed on the entity’s website): Monetary NGRBC Principle Name of the Amount (In INR) Brief of the Case Has an appeal been regulatory/ preferred? enforcement (Yes/No) agencies/ judicial institutions Penalty/ Fine Settlement Nil Compounding fee Non-Monetary NGRBC Principle Name of the Brief of the Case Has an appeal been regulatory/ preferred? (Yes/No) enforcement agencies/ judicial institutions Imprisonment Nil Punishment 129 3. No. of the instances disclosed in Question 2 above, details of approach. It is done by adopting the highest standards of the Appeal/ Revision preferred in cases where monetary or professionalism, honesty, integrity, and ethical behavior in all non-monetary action has been appealed. its business processes and transactions. THDCIL is committed -NA to follow the principles of fair practice and business ethics and adopted the Corporate Ethics Policy, which lays down the 4. Does the entity have an anti-corruption or anti-bribery policy? principles and standards that govern the actions of the Company If yes, provide details in brief and if available, provide a web- and the employees. link to the policy. This Ethics Policy statement shall apply to members of the The Corporation does not have any specific and notified anti- Board of Directors, employees including those on deputation/ corruption or anti-bribery Policy. However, all the employees lien except those in casual employment, contracting agencies, are governed by Prevention of Corruption Act, 1988 and Central consultants, suppliers associated in business relationship and Vigilance Commission Act, 2003. other stakeholders. All concerned are expected to observe the The employees of the Organization are bound by the enforceable highest standards of ethical conduct, consistent with the values policies with the Code of Conduct of the organization. Codes of of integrity, impartiality and discretion. In the performance of conduct are the set of specific rules designed to outline specific duties, employees are expected to act with exclusive loyalty to practices and behaviors that are to be encouraged or prohibited. THDCIL, and to its objectives, purposes and principles. Code of Conduct also lays down guidelines and procedures to be (E) Code of Business Conduct and Ethics used to determine whether violations of the code occurred and what penalties would be imposed for specific infractions. The Codes of Business Conduct & Ethics are for Board Members and Senior Management of THDC India Limited. The purpose The brief of attributes of the laid down code of conduct in form of of this Code is to enhance ethical and transparent process various rules/polices/codes/regulations are as under: in managing the affairs of the Company. This Code for Board (A) Vision, Mission and Values Members and Senior Management has been framed specially in compliance of the provisions of Clause 49 of the Listing Every employee should strive to accomplish Company’s Vision Agreement with Stock Exchanges, whenever applicable, and as & Mission in a professional manner. It is the duty of employees per the Guidelines of DPE. to serve with respect, concern, courtesy, and responsiveness in carrying out the Organization’s mission. Employee should This code is intended to serve as a basis for ethical decision- strive for personal and professional excellence and encourage making in the conduct of professional work. It may also serve as the professional development of others. The Vision and Mission a basis for judging the merit of a formal complaint pertaining to of the Corporation are being diligently pursued and endeavor is violation of professional ethical standards. being made to realize the same through utmost devotion to duty. (F) Whistle Blower Policy (B) Conduct, Discipline and Appeal Rules For ensuring higher level of transparency by CPSEs, the These rules are called the THDCIL’s Conduct, Discipline, and Government decided to make “Guidelines on Corporate Appeal Rules, 1990. These rules are applied to all employees Governance for CPSEs” mandatory and applicable to all of the Company including those on deputation/contract service CPSEs. except in casual employment or paid from contingencies and As per the Guidelines, Whistle Blower Policy states that “The governed by the Standing Orders of the Company under Industrial Company may establish a mechanism for employees to report Employment (Standing Orders) Act, 1946. to the management, concerns about unethical behavior, actual or The purpose of this rule is to enhance ethical and transparent suspected fraud, or violation of the company’s General Guidelines process in managing the affairs of the Company, and thus on conduct or ethics policy. This mechanism could also provide to sustain the trust and confidence reposed in the Officers for adequate safeguards against victimization of employees by the stakeholders of the Company. Officers are expected who avail of the mechanism and also provide for direct access to understand, adhere to, comply with, and uphold the laid to the Chairman of the Audit Committee in exceptional cases. down provisions of this code & standards in their day-to-day Once established, the existence of the mechanism may be functioning. The principles prescribed in this Code are general in appropriately communicated within the organization.” nature and lay down broad standards of compliance and ethics. This policy is formulated to facilitate highest possible standards (C) Standing Orders for Workmen of ethical, moral, and legal business conduct in the Company. This act is to require employers in industrial establishments to The objective of the Policy is to formally define conditions of employment under them in the • provide opportunity to employees to access in good faith, form of Standing orders after certifying authority. It applies to to the Management or in exceptional cases, to the Chairman every industrial establishment wherein 100 (reduced to 50 by the of the Audit Committee, in case they observe unethical and Central Government in respect of the establishments for which it improper practices or any other wrongful conduct in the is the Appropriate Government) or more workmen are employed. Company. The purpose of having Standing Orders is to regulate industrial relations. These Orders regulate the conditions of employment, • provide necessary safeguards for protection of employees grievances, misconduct etc. of the workers employed in industrial from victimization, for whistle blowing in good faith. undertakings. • prohibit managerial personnel from taking any adverse (D) Corporate Ethics Policy personnel action against those employees. THDCIL upholds the importance of a fair and transparent 130 (G) Integrity pact Only those vendors/bidders who have entered into such an THDCIL in its endeavor to eradicate/ mitigate corruption has Integrity Pact with the buyer would be competent to participate adhered to utilizing or leveraging various packages as effective in the bidding. In other words, entering into this Pact would be tools in THDCIL administration. In order to achieve these a preliminary qualification. The Integrity Pact in respect of a goals, THDCIL has implemented Integrity Pact in line with the particular contract would be effective from the stage of invitation requirement of Central Vigilance Commission. It has established of bids till the complete execution of the contract. mutual contractual rights and obligations to reduce the high The Integrity Pact envisages a panel of Independent External cost and effects of corruption. The Pact essentially envisages Monitors (IEMs) approved for the organization. The IEM is to an agreement between the prospective vendors/bidders and the review independently and objectively, whether and to what extent buyer committing the persons/officials of both the parties, not parties have complied with their obligations under the Pact. to exercise any corrupt influence on any aspect of the contract. 5. Number of Directors/KMPs/employees/workers against whom disciplinary action was taken by any law enforcement agency for the charges of bribery/ corruption: FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Directors Nil Nil KMPs Nil Nil Employees Nil Nil Workers Nil Nil 6. Details of complaints with regard to conflict of interest: FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Number Remarks Number Remarks Number of complaints received in relation to issues of Conflict of Interest of the Directors Nil Number of complaints received in relation to issues of Conflict of Interest of the KMPs 7. Provide details of any corrective action taken or underway on issues related to fines / penalties / action taken by regulators/ law enforcement agencies/ judicial institutions, on cases of corruption and conflicts of interest. -Not Applicable PRINCIPLE 2 Businesses should provide goods and services in a manner that is sustainable and safe. 1. Percentage of R&D investments in specific technologies to improve the environmental and social impacts of product and processes to total R&D and investments made by the entity, respectively. R&D Expenditures against approved R&D Plan & Budget (FY 2021-22) Sl. Particulars of the Project Expenditure incurred Impact of the study Outcome of the No. during F.Y. 2021-22 study (` in Lakh) 1. Condition Monitoring of EM 22.88 Periodic condition monitoring and health assessment The equipment of Tehri & KHEP . of critical electro-mechanical equipment to detect recommendations (For FY 2020-21) early signs of deterioration, malfunctioning and given by M/s inception faults and thus ensure reliability and CPRI has been stability of the projects. implemented at site. 131 2. Operation and maintenance 182.67 Collection of long term data on micro earthquake Study under of a 18-station activity of the region around Tehri dam before, during progress seismological network and after impounding of water in Tehri reservoir. deployed in the region around Tehri dam and 13-station strong motion network installed in Tehri dam & Koteshwar dam. 3. Consultancy for 48.28 Observation of real time meteorological and Study under improvement in real time hydrological data and transmission of the same progress inflow forecasting system to earth station established at Tehri for further for Tehri Dam reservoir. processing of data for forecasting the inflow for Tehri reservoir. 4. Analysis and mitigation 7.50 The study will identify the oscillations with reasons Study under of oscillations in Hydro incurred in generating units of Tehri HPP and progress Generator fed Transmission Koteshwar HPP and develop solutions for damping lines. out the oscillations. 5. Study of structural integrity 14.94 Study under progress Study under of submerged Intake progress structures with variation in Tehri reservoir water head with a particular reference to construction and lift joints. 6. Other miscellaneous works 3.59 – Total 279.86 2. a. Does the entity have procedures in place for sustainable sourcing? (Yes/No) -Yes b . If yes, what percentage of inputs were sourced sustainably? Almost all the procurements are made through sustainable sourcing methods viz GeM Portal, e-Tendering etc. 3. Describe the processes in place to safely reclaim your products for reusing, recycling and disposing at the end of life, for (a) Plastics (including packaging) (b) E-waste (c) Hazardous waste and (d) other waste. (a) Plastics (including packaging)-A solid waste management plant has been established in Rishikesh. The segregated inorganic waste collected from all houses, Guest Houses, and offices in THDCIL premises is being utilized by making the Plastic Bales. There are two sheds constructed for this purpose, one for plastic baling machine (compactor) and other for segregation of plastic material from other type of inorganic waste like broken glasses, lather material and Metallic material. Similar practices are followed at other project locations. (b) E-waste: THDCIL have very minimal E-Waste. The E-Waste is disposed as per Govt. Norms. (c) Hazardous waste: No hazardous waste. (d) Other waste: Same as point (a) above. Similar practices are followed at other project locations 4. Whether Extended Producer Responsibility (EPR) is applicable to the entity’s activities (Yes / No). If yes, whether the waste collection plan is in line with the Extended Producer Responsibility (EPR) plan submitted to Pollution Control Boards? If not, provide steps taken to address the same. -Not Applicable PRINCIPLE 3 Businesses should respect and promote the well-being of all employees, including those in their value chains 1. a. Details of measures for the well-being of employees: Category % of employees covered by Total (A) Health insurance Accident insurance Paternity Benefits Maternity benefits Day Care facilities % (B Number % (C / Number % (D / Number % (E / Number % (F / Number (B) / A) (C) A) (D) A) (E) A) (F) A) 132 Permanent employees Male 762 NA NA 762 100% NA NA 05 0.65% NA NA Female 51 NA NA 51 100% NIL NIL NA NA NA NA Total 813 NA NA 813 100% NIL NIL 05 0.65% NA NA Other than Permanent employees Male 9 NA NA NA NA NA NA NA NA NA NA Female 5 NA NA NA NA NA NA NA NA NA NA Total 14 NA NA NA NA NA NA NA NA NA NA b. Details of measures for the well-being of workers: Category % of workers covered by Total (A) Health insurance Accident Paternity Benefits Maternity benefits Day Care facilities insurance Number % Number % Number % (D/A) Number (E) % (E/A) Number (F) % (F / A) (B) (B/A) (C) (C/A) (D) Permanent employees Male 775 NA NA 775 100% NA NA 02 0.25% NA NA Female 56 NA NA 56 100% NIL NIL NA NA NA NA Total 831 NA NA 831 100% NIL NIL 02 0.25% NA NA Other than Permanent workers Male 5737 1205 21% NA NA NA NA NA NA NA NA Female 170 87 51% NA NA NA NA NA NA NA NA Total 5990 1292 22% NA NA NA NA NA NA NA NA 2. Details of retirement benefits, for Current FY and Previous Financial Year: Benefits FY 2021-22 FY 2020-21 Current Financial Year Previous Financial Year No. of No. of Deducted and No. of No. of workers Deducted and employees workers deposited with employees covered as deposited with covered as covered as the authority covered as a % of total the authority a % of total a % of total (Y/N/N.A.) a % of total workers (Y/N/N.A.) employees workers employees PF 100% 100% Y 100% 100% Y Gratuity 100% 100% Y 100% 100% Y ESI NA NA NA NA NA NA 1) GSLI: 84.9% 91.86% Yes 86.22% 92.17 % Yes A). Maturity B). Accidental Claim 15.08% 8.13% Yes 13.78% 7.83% Yes 2) In lieu of GSLI A) GI Scheme for new employee B) Accidental Insurance for new employee 3. Accessibility of workplaces Are the premises / offices of the entity accessible to differently abled employees and workers, as per the requirements of the Rights of Persons with Disabilities Act, 2016? If not, whether any steps are being taken by the entity in this regard. In compliance of implementation of United Nations Convention on the Rights of Persons with Disabilities, the Corporation has provided easy accessibility by way of erecting ramps in most buildings of the Corporation. The Company has been making all efforts towards creation of barrier free environment for differently abled by following the guidelines laid down under Sugamya Bharat Abhiyan. The Company has been nominating employees belonging to Physically Handicapped category to attend special training programmes. The Company has nominated Liaison Officers to identify the issues pertaining to differently abled employees and implementation of various welfare activities for them. The Company has Equal Opportunity Policy and is implemented in letter and spirit. 133 4. Does the entity have an equal opportunity policy as per the Rights of Persons with Disabilities Act, 2016? If so, provide a web-link to the policy. Yes, https://thdc.co.in/sites/default/files/EQUAL_OPPORTUNITY_POLICY_0.pdf 5. Return to work and Retention rates of permanent employees and workers that took parental leave. Permanent employees Permanent workers Gender Return to work rate Retention rate Return to work rate Retention rate Male 100% (5 Employees) 100% 100% (2 Employees) 100% Female NIL NIL Nil Nil Total 100% (5 Employees) 100% 100% (2 Employees) 100% 6. Is there a mechanism available to receive and redress grievances for the following categories of employees and worker? If yes, give details of the mechanism in brief. Yes/No (If Yes, then give details of the mechanism in brief) Permanent Workers Yes Other than Permanent Workers - Permanent Employees Yes Other than Permanent Employees - 7. A brief write up on mechanism available to receive and redress grievances PROCEDURE FOR GRIEVANCE REDRESSAL: Stage I: Aggrieved employee may present his grievance in writing (Form No.1) to his Controlling Officer (not below the rank of Deputy Manager) within 15 days from the date the said grievance arose. The grievance shall be entered in the grievance register maintained for the purpose in the office of the Controlling Officer. An acknowledgment indicating the number of the grievance will be issued to the employee. The controlling officer will make necessary enquiries and give a reply (Form no. II) to the employee within 30 days from the date of receipt of the grievance. The grievance of routine nature should not normally take more than 15 days for making the reply to the employee. Stage II: If the aggrieved employee is not satisfied with the reply made to him by the Controlling Officer, he may present his grievance to his HOD/ General manager (in Form No.1) indicating the original grievance number given by the Controlling Officer, within 10 working days of the receipt of the reply at stage-1. At his stage, Form No.1 will be addressed to his General Manager/Head of Project in case of Unit/Project and HOD in case of Corporate Office (as notified by Corporate HR Deptt.). On receipt of the grievance, GM/HOP/HOD will process the case further, give a personnel hearing to the employee concerned and make reply (Form No. II) in the matter, within a reasonable time. Normally, grievance at stage-II should not take more than 30 days to give a reply to the employee. Stage III: If the employee is still not satisfied with the reply he got at stage-II, he may present his grievance to the Chairman-GRC (Form No.1) indicating the original grievance number within seven days of receipt of reply at stage-II, stating the reasons why he is not satisfied with the reply received at Stage-II. 8. Membership of employees and worker in association(s) or Unions recognised by the listed entity: Category FY 2021-22(Current Financial Year) FY 2020-21 (Previous Financial Year) Total employees No. of employees / % Total employees No. of employees / % / workers in workers in respective (B / A) / workers in workers in respective (D / C) respective category, who are part respective category category, who are part category (A) of association(s) or (C) of association(s) or Union (B) Union (D) Total Permanent 813 256 31.48% 842 303 35.98% Employees Male 762 246 32.28% 793 303 38.20% Female 51 10 19.61% 49 0 0% Total Permanent 831 786 94.58% 894 786 87.91% Workers Male 775 736 94.96% 837 786 93.9% Female 56 50 89.29% 57 0 0% 134 8. Details of training given to employees and workers: Category FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Total (A) On Health and safety On Skill upgradation Total On Health and safety On Skill upgradation measures (D) measures No. (B) % (B/A) No. (C) % (C/A) No. (E) % (E/D) No. (F) % (F/D) Employees Male 762 166 21.78% 66 8.66% 793 152 19.17% 238 30.01% Female 51 51 100% 3 5.88% 49 39 79.59% 45 91.83% Total 813 217 26.69% 69 8.48% 842 191 22.68% 283 33.61% Workers Male 775 147 18.96% 48 6.19% 837 188 22.46% 04 0.48% Female 56 06 10.71% 0 - 57 36 63.16% 0 NIL Total 831 153 18.41% 48 5.78% 894 224 25.06% 04 0.45% 9. Details of performance and career development reviews of employees and worker: Category FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year Total (A) No. (B) % (B / A) Total (C) No. (D) % (D / C) Employees Male 813 813 100% 793 793 100% Female 762 762 100% 49 49 100% Total 51 51 100% 842 842 100% Workers Male 831 831 100% 837 837 100% Female 775 775 100% 57 57 100% Total 56 56 100% 894 894 100% 10. Health and safety management system: a. Whether an occupational health and safety management system has been implemented by the entity? (Yes/ No). If yes, the coverage such system? Yes, there is an established occupational health & Safety Management System in place in THDCIL. This system is providing coverage through Designated Officer(s) & Qualified Safety officers, Site Engineers and Management Information System. b. What are the processes used to identify work-related hazards and assess risks on a routine and non-routine basis by the entity? The workrelated hazards and assessment of risks are being identified through Safety Inspections /site visits by Site Engineers/Qualified Safety Officers and also by higher Officials time–to–time as per the need of hour. c. Whether you have processes for workers to report the workrelated hazards and to remove themselves from such risks. (Y/N) -Yes d. Do the employees/ worker of the entity have access to non-occupational medical and healthcare services? (Yes/ No). -Yes 135 11. Details of safety related incidents, in the following format: Safety Incident/Number Category FY 2021-22 FY 2020-21 (Current Financial (Previous Financial Year) Year) Lost Time Injury Frequency Rate (LTIFR) (per one million-person hours Employees Nil Nil worked) Workers Nil Nil Total recordable work-related injuries Employees Nil Nil Workers 01 Nil No. of fatalities Employees Nil Nil Workers Nil Nil High consequence work-related injury or ill-health (excluding fatalities) Employees Nil Nil Workers Nil Nil 12. Describe the measures taken by the entity to ensure a safe and healthy work place. THDCIL is an OHSAS-45001:2018 Management System certified company and is committed to ensure Health and Safety of its Employees, Contractors, Sub contractors and community by strict adherence to the norms of Occupational Health and Safety. Following measures adopted in THDCIL are worth highlighting here: • Site Inspection: - Regular Site Inspections by the Safety Officers of concerned Projects. • Safety Health and Environment Manual:- Circulation of “Safety Health and Environment(SHE)” Manual to all the Projects. This manual is also accessible by all the employees of THDCIL at THDCIL`s website(thdc.co.in). • Implementation of Legal Requirements:- Ensuring implementation of all legal and other requirements viz. Factory Act-1948, BoCW Act- 1996 and CEA Regulation-2011 etc. at the projects. • Safety Committee:- Formation of Safety Committees in the projects to promote co-operation between workers and management in maintaining proper safety and health at work places and periodical review of the measures taken for that. • Safety Awareness Program:- Organizing Safety Awareness Programs for workers from time to time at the projects. • Mock Drills:- Organizing mock drills for analyzing the action & response time to mitigate the emergency situations. 13. Number of Complaints on the following made by employees and workers: FY 2021-22 (Current Financial Year) FY 2020-21 (Previous Financial Year) Filed during Pending resolution at Remarks Filed during Pending resolution Remarks the year the end of year the year at the end of year Working Conditions Nil Nil Nil Nil Nil Nil Health & Safety Nil Nil Nil Nil Nil Nil 14. Assessments for the year. % of your plants and offices that were assessed (by entity or statutory authorities or third parties) Health and safety practices Yes, External Audit through Third Party (M/s National Safety Council,Uttarakhand) Working Conditions Checked the working conditions through External Safety Audits and Internal Safety Audits every year through external Safety Auditor, Safety Officers and Site Engineer’s continuously to check the working condition at the respective work places. 15. Provide details of any corrective action taken or underway to address safety-related incidents (if any) and on significant risks / concerns arising from assessments of health & safety practices and working conditions. • OHS Awareness Programmes to had been /are being organised time to time impart training to Employees & Officers of Plants and under Construction Projects in respect of Fire Safety, PPE`s, In plant Safety awareness etc. THDCIL Safety Officers are imparting training/awareness on different topics of Safety Awareness Programme from time to time to all workers on construction sites & Power House Plant. Besides Safety awareness through Mock drill programme had been /are being organised regularly. • Safety Audit is being done by Govt. External Agency every year. • Internal Safety Audits are being done by THDCIL Qualified Safety Officers. 136 • In case of happening of any accident/incident all statutory/ legal requirements are being fulfilled by THDCIL. • Safety inspections, Visits and Tool Box Talks are being done by THDCIL employees/officers on daily basis. • In compliance to provisions laid under Act & Rules monthly and quarterly OH&S Safety Committee Meetings are being conducted with workers and Management. OH&S related significant risks & concerns arising from assessments of health & safety practices and working conditions are being discussed & rectified from time to time. PRINCIPLE 4: Businesses should respect the interests of and be responsive to all its stakeholders 1. Describe the processes for identifying key stakeholder groups of the entity. We define our stakeholders as individuals and groups who are impacted by our activities, or those who can have an impact on our future development. Due to the diverse interests of each stakeholder group, which varies in each of our area of operation, we adapt our approach, communication channels and engagement activities as appropriate. Through this tailored approach, we continuously seek to understand our stakeholders’ expectations and demands and reflect these in our sustainability strategy, report and overall business activities. Stakeholder engagement takes into account the varying perspectives, priorities and limitations of different stakeholders. To ensure proper identification, Stakeholders Identification is kept as an integral part of THDCIL’s CSR Communication Strategy. Communication strengthens trust between the Organization and its Stakeholders. Communication is critical to keep all the Stakeholders well informed, especially the employees so as to ensure that not only all the business processes are in tune with the globally accepted ethical systems and Sustainable Management practices, but also their engagement with the external Stakeholders is based on these values. 2. List stakeholder groups identified as key for your entity and the frequency of engagement with each stakeholder group. Stakeholder Whether identified Channels of communication Frequency of Purpose and scope of engagement Group as Vulnerable & (Email, SMS, Newspaper, engagement (Annually/ including key topics and concerns Marginalized Group Pamphlets, Advertisement, Half yearly/ Quarterly / raised during such engagement (Yes/No) Community Meetings, others – please specify) Notice Board, Website), Other Government and No v Signing of MoU v Annually Being PSU, equity is held by NTPC and Statutory bodies v Correspondence v Round the year Govt. of UP . All project approvals and / NTPC clearances. Performance MoU and other v Annual Report v Annually statutory requirements for running the v Meetings v As and when required business. v Presentations v As and when required v Website Visits v As and when required Employees No v Publication of Magazines v Quarterly, Annually, Employees are engaged in day to day v Grievance Redressal Half-yearly activities and periodical dialogues are Mechanism v Round the Year held to understand their needs and expectations. v Circulars and Office v Round the Year Orders v Round the Year v Communal Programmes v Round the Year v Feedbacks v Annually v Suggestion Mela Customers No v Signing of PPAs v Well before THDCIL takes prompt measures v Feedback survey commissioning of and offers assistance to its valuable any Project Customers by synchronising its v Meetings v Annually activities with other concerned v Correspondence Organizations/ Agencies v As and when required v Round the Year Suppliers & No v Tenders v As and when required THDCIL believes that Contractors, Contractors v Open Bid Discussions v With every award Suppliers, Consultants and their employees are key Stakeholders in v Policy and Procedures v Round the year Project Implementation. Concerns of v Meetings v Regular basis the Contractors/Suppliers/Consultants v Joint Discussions v Regular basis are regularly being addressed. 137 Project Affected Yes v CSR Programmes v Round the Year THDCIL has a mission “To undertake Persons/ Local v Meetings v As and when required Rehabilitation and Resettlement of and Indigenous Project Affected Persons with human v Grievance Redresseal v Round the Year communities face”. v Magazines v Quarterly, Annually, Half-yearly THDCIL is committed towards social v Pamphlets/Website upliftment of Rehabilitees. THDCIL is Disclosures v Round the Year spending approx. 90% of its CSR Fund v Public Information Centres v Opened at project in Project Affected Region. sites-Operational Plants Media No v Press Briefings v Round the Year THDCIL has formulated structured v Invitations to events v Round the Year communications tools and established a separate Communication Department at Corporate Level for interaction with media (both print and electronic media) Society at a large No v Press News v Round the year Being a public limited company, it is our v Notice v Round the year responsibility to engage society as our stakeholder. v Publicity v Round the year v CSR Programmes v Round the year v Display on website v Round the year v Facebook and Twitter v Round the year Page PRINCIPLE 5 Businesses should respect and promote human rights. 1. Employees and workers who have been provided training on human rights issues and policy(ies) of the entity, in the following format: Category FY 2021-22 FY2020-21 Current Financial Year Previous Financial Year Total (A) No. of employees / % (B/A) Total (C) No. of employees / % (D/C) workers covered (B) workers covered (D) Employees Permanent 813 39 4.79% 842 25 2.97% Other than permanent 14 - - 6 - - Total Employees 827 39 4.79% 848 25 2.95% Workers Permanent 831 15 1.8% 894 - - Other than permanent 5990 33 0.55% 4030 - - Total Employees 6821 48 0.70% 4924 - - 2. Details of minimum wages paid to employees and workers, in the following format: Category FY 2021-22 FY2020-21 Current Financial Year Previous Financial Year Total (A) Equal to Minimum Wage More than Minimum Total (D) Equal to Minimum Previous Financial Wage Wage Year No. (B) % (B / A) No. (C) % (C / A) No. (E) % (E / D) No. (F) % (F / D) Employees Permanent 813 813 100% 842 - - 842 100% Male 762 762 100% 49 - - 49 100% Female 51 51 100% 793 - - 793 100% 138 Other than 14 14 100% 6 - - 6 100% Permanent Male 9 9 100% 4 - - 4 100% Female 5 5 100% 2 - - 2 100% Workers Permanent 831 831 100% 894 - - 894 100% Male 775 775 100% 837 - - 837 100% Female 56 56 100% 57 - - 57 100% Other than 5990 5990 100% 4030 4030 100% - - Permanent Male 5820 5820 100% 3819 3819 100% - - Female 170 170 100% 211 211 100% - - 3. Details of remuneration/salary/wages Amount in ` Male Female Number Median remuneration/ salary/ Number Median remuneration/ salary/ wages of respective category wages of respective category Board of Directors (BoD) 4 5565366 - - Key Managerial Personnel* 02 - 01 2248409 Employees other than BoD and KMP 877 2947809 43 2446911 Workers 779 1842802 52 1666520 *Median remuneration of 2 Male KMPs is included in Board of Directors. 4. Do you have a focal point (Individual/ Committee) responsible for addressing human rights impacts or issues caused or contributed to by the business? (Yes/No) - No 5. Describe the internal mechanisms in place to redress grievances related to human rights issues. There is no specific mechanism to redress grievances related to human rights however, company has a mechanism of redressal of public grievances which enumerates the steps that are required to be taken to ensure that the internal public grievance redressal machinery is in order for prompt redressal of grievances of citizens. Wide publicity of the grievance mechanism available in the Corporation is made and the name, designation and address of Director of Public Grievances are given on the official website under Grievances menu. 6. Number of Complaints on the following made by employees and workers: FY 2021-22 Current Financial Year FY2020-21 Previous Financial Year Filed during Pending resolution at Remarks Filed during Pending resolution at Remarks the year the end of year the year the end of year Sexual Harassment 01 NIL NIL NIL NIL NIL Discrimination at NIL NIL NIL NIL NIL NIL workplace Child Labour NIL NIL NIL NIL NIL NIL Forced Labour/ NIL NIL NIL NIL NIL NIL Involuntary Labour Wages NIL NIL NIL NIL NIL NIL Other human rights NIL NIL NIL NIL NIL NIL related issues 139 7. Mechanisms to prevent adverse consequences to the complainant in discrimination and harassment cases. Internal Complaints Committee (ICC) is working to protect the interest of the complainant in case of harassment. Moreover THDCIL complies with Article 12 of Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. 8. Do human rights requirements form part of your business agreements and contracts? - Yes 9. Assessments for the year: % of your plants and offices that were assessed (by entity or statutory authorities or third parties) Child labour No external/third party audit has been carried out. Although there is a robust mechanism of internal audits Forced/involuntary labour which are conducted on regular basis. Sexual harassment Discrimination at workplace Wages Others – please specify 10. Provide details of any corrective actions taken or underway to address significant risks / concerns arising from the assessments at Question 9 above. -Any issues related to wages identified in the internal inspection are flagged to higher authorities for speedy resolution. PRINCIPLE 6 Businesses should respect and make efforts to protect and restore the environment. 1. Details of total energy consumption (in MU) and energy intensity, in the following format. Parameter FY 2021-22 FY 2020-21 Remarks (Current Financial Year) (Previous Financial Year) Total electricity consumption (A) 26.75 MU 26.56MU Includes Corporate Office Total fuel consumption (B) 68,649.47 Ltr 81,445 Ltr. and Plants / Projects above Energy consumption through other sources (C) 6.79 MU 7.97 MU Total energy consumption (A+C) 33.54 MU 34.54 MU 100 MW Energy intensity per rupee of turnover (Total energy 0.142 kwh/` 0.162 kwh/` Corporate Office consumption/ turnover in rupees) 2. Does the entity have any sites / facilities identified as designated consumers (DCs) under the Performance, Achieve and Trade (PAT) Scheme of the Government of India? (Y/N) If yes, disclose whether targets set under the PAT scheme have been achieved. In case targets have not been achieved, provide the remedial action taken, if any. No. However, THDCIL has taken Energy Efficiency Measures like replacement of old ACs with 5 star rated ACs, installation of LED lights, installation of solar street lights, Solar Geysers, Roof top solar etc. at Corporate Office and all major project locations. 3. Provide details of the following disclosures related to water, in the following format: Parameter FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Water withdrawal by source (in kilolitres) (i) Surface water 1425320 1457550 (ii) Groundwater 94850 98550 (iii) Third party water - - (iv) Seawater / desalinated water - - (v) Others (WTP & STP Plant) 2880 2880 Total volume of water withdrawal (in kilolitres) (i + ii + iii + iv + v) 1523050 1558980 Total volume of water consumption (in kilolitres) 1520170 1556100 Water intensity per rupee of turnover (Water consumed / turnover) - - Water intensity (optional) – the relevant metric may be selected by the entity - - 140 4. Has the entity implemented a mechanism for Zero Liquid Discharge ? If yes, provide details of its coverage and implementation. -No 5. Please provide details of air emissions (other than GHG emissions) by the entity, in the following format: Parameter Please specify unit FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) NOx µg/m3 Sox µg/m3 Particulate Matter (PM) µg/m3 Presently, THDCIL is generating power through renewable sources viz. Hydro, Persistent Organic Pollutants (POP) µg/m3 Wind and Solar. Therefore, emissions are negligible in THDCIL’s business. Volatile Organic Compounds(VOC) µg/m3 Hazardous Air Pollutants (HAP) µg/m3 6. Provide details of greenhouse gas emissions (Scope 1 and Scope 2 emissions) & its intensity, in the following format: Parameter FY 2021-22 FY 2020-21 Unit (Current Financial Year) (Previous Financial Year) Total Scope 1 emissions(Break-up of the GHG into CO2, Metric ton of CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent Total Scope 2 emissions (Break-up of the GHG into CO2, Metric ton of Presently, THDCIL is generating power through CH4, N2O, HFCs, PFCs, SF6, NF3, if available) CO2 equivalent renewable sources viz. Hydro, Wind and Solar. Therefore, Total Scope 1 and Scope 2 emissions per rupee of turnover emissions are negligible in THDCIL’s business. Total Scope 1 and Scope 2 emission intensity (optional) –the relevant metric may be selected by the entity 7. Does the entity have any project related to reducing Green House Gas emission? If Yes, then provide details. -NA 8. Provide details related to waste management by the entity, in the following format: Parameter FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Total Waste generated (in metric ton) Plasticwaste (A) 0.467 1.81 E-waste (B) 0.722 0.254 Bio-medicalwaste (C) 0.572 1.3915 Construction and demolition waste (D) 852000 679200 Battery waste (E) 4.7 3.4 Radioactive waste (F) NIL NIL Other Hazardous waste. (Burnt Oil, used tyres, lubricants, transformer oils 8.45 MT 59.837 etc.) (G) Other Non-hazardous waste generated (office / plant non-saleable scrap) (H). 0.73 MT 8.894 Total (A+B+C+D+E+F+G+H) 852015.64 679275.5865 For each category of waste generated, total waste recovered through recycling, re-using or Other recovery operations (in metric tonnes) Category of waste (i) Recycled NIL 1.46 141 (ii) Re-used 595241.73 88853.9 (iii) Other recovery operations 21.767 6.42 Total 595263.497 88861.78 For each category of waste generated, total waste disposed by nature of disposal method (in metric tonnes) Category of waste (i) Incineration 0.257 0.5 (ii) Landfilling 256800.31 590401.6715 (iii) Other disposal operations 0.825 0.944 Total 256801.39 590403.1155 9. Briefly describe the waste management practices adopted in your establishments. Describe the strategy adopted by your company to reduce usage of hazardous and toxic chemicals in your products and processes and the practices adopted to manage such wastes. The waste management practices followed at Corporate Office/ Township, Rishikesh is as under: 1. Door to Door collection of organic and dry garbage in colony One tempo carrier runs on all colony and office roads from 07:30 AM to 11:30 AM in all week days for collection of organic and inorganic garbage. A separation / partition space exists for organic garbage, inorganic garbage and mix garbage space in the Tempo carrier. 2. Segregation of dry and organic garbage from mix garbage at Bio-gas plant After collection of garbage from all houses and offices in THDCIL premises, tempo carrier gets unloaded on the platform of Bio-gas plant where two labours segregate the organic garbage and inorganic garbage from the garbage mix obtained from all sources. Organic garbage is processed in the Bio-gas plant to produce the Bio-cooking gas which is supplied to the local Aahar canteen. 3. Plastic waste disposal at solid waste management plant A solid waste management plant has been established on 07.07.2019 under the guidance of solid waste management consultant. The segregated inorganic waste collected from all houses, Guest Houses, and offices in THDCIL premises is being utilized by making the Plastic Bales. There are two sheds constructed for this purpose, one for plastic baling machine (compactor) and other for segregation of plastic material from other type of inorganic waste like broken glasses, lather material and Metallic material. 4. Disposal of unused Inorganic waste After segregation of organic waste and usable plastic waste from total garbage collected, the remaining waste material is disposed off in the ground behind old storage area. This waste is buried under the ground so that no bad smell is spread in the nearby area. The pits are covered with earth after complete filling with un-useful garbage. Similar practices are followed at project locations. 10. If the entity has operations/offices in/around ecologically sensitive areas (such as national parks, wildlife sanctuaries, biosphere reserves, wetlands, biodiversity hotspots, forests, coastal regulation zones etc.) where environmental approvals / clearances are required, please specify details in the following format: S. No. Location of operations / offices Type of operations Whether the conditions of environmental approval / clearance are being complied with?(Y/N) If no, the reasons thereof and Corrective action taken, if any. 1. Vishnugad Pipalkoti HEP , Pipalkoti with Dam Under Construction Vishnugad Pipalkoti HEP does not fall inside the ecologically site at Helong and Power House site at Hat HEP (444 MW) sensitive areas but is located within 10 KM radius of Kedarnath village, Chamoli District Wild Life Sanctuary, therefore necessary clearance has been obtained and conditions complied. 11. Details of environmental impact assessments of projects undertaken by the entity based on applicable laws, in the current financial year: Name and brief EIA Date Whether conducted by Results Relevant Weblink details of project Notification No. independent external communicated in agency (Yes/No) public domain (Yes/No) VPHEP (444 MW) EIA Notification 2006 and Nov-2020 Yes EIA study is in parivesh.nic.in its various amendments Progress Bokang Baling (200 MW) Sep-2020 Yes 142 12. Is the entity compliant with the applicable environmental law/ regulations/ guidelines in India; such as the Water (Prevention and Control of Pollution) Act, Air (Prevention and Control of Pollution) Act, Environment protection act and rules thereunder (Y/N). If not, provide details of all such non-compliances, in the following format: Yes, the entity compliant with the applicable environmental law/ regulations/ guidelines in India. S.No. Specify the law / regulation Provide details of the Any fines/penalities action taken by Corrective action taken, / guidelines which was not non-compliance regulatory agencies such as pollution if any complied with control Boards or by courts NA PRINCIPLE 7 Businesses, when engaging in influencing public and regulatory policy, should do so in a manner that is responsible and transparent 1. a. Number of affiliations with trade and industry chambers/ associations. THDCIL is member of two associations. b. List the top 10 trade and industry chambers/ associations (determined based on the total members of such body) the entity is a member of/ affiliated to. S.No. Name of the trade and industry chambers / Reach of trade and industry chambers/ associations associations (State/National) 1 All India Management Association (AIMA) National 2 Standing Conference of Public Enterprises (SCOPE) National 2. Provide details of corrective action taken or underway on any issues related to anti-competitive conduct by the entity, based on adverse orders from regulatory authorities. -NA PRINCIPLE 8 Businesses should promote inclusive growth and equitable development 1. Details of Social Impact Assessments (SIA) of projects undertaken by the entity based on applicable laws, in the current financial year. Name and brief SIA Date of notification Whether conducted by Results communicated Relevant Web link details of project Notification independent external agency in public domain No. (Yes/ no) (Yes / No) NIL 2. Provide information on project(s) for which ongoing Rehabilitation and Resettlement (R&R) is being undertaken by your entity, in the following format: S.N. Name of Project for State District No. of Project Affected % of PAFs Amounts paid to PAFs in the which R&R is ongoing Families (PAFs) covered by FY (In INR) R&R 1 Khurja Super Thermal UP Bulandshahar 76 families of Nagla NA 76 families of Nagla Rukanpur Power Project Rukanpur Village as Were paid against their property per Abadi Recorded in totalling to ` 5.69 Cr. as per Revenue Records have valuation made by UPPWD/ been shifted. Dist Admn. 2 Vishnugad Pipalkoti Uttarakhand Chamoli 559 94% 3.26 Cr. Hydro Electric Project 3. Describe the mechanisms to receive and redress grievances of the community. Feed back form is available in public domain that can be easily accessible at https://www.thdc.co.in/content/feedback-form. All the queries are being resolved in compliance to Communication strategies finalized by THDCIL and same can be referred at https://www.thdc.co.in/content/ communication-strategy. In addition, THDC has set up a Grievance Redress Cell (GRC) for Project affected Persons at the project level. All the grievances registered are being put for the resolution of GRC during its meeting organized from time to time as per the requirement. 143 VPHEP: GRIEVANCE REDRESSAL CELL. • THDC has set up a Grievance Redress Cell (GRC) at the project level. The cell is headed by a Gazzetted Officer. The other members of the cell are representative of PAPs (one from each directly affected village), Head of Project level Social Department. THDC as member secretary, and representative of NGO. • All the grievances registered are being put for the resolution of GRC during its meeting to be organize from time to time as per the requirement. 4. Percentage of input material (inputs to total inputs by value) sourced from suppliers: FY 2021-22 FY 2020-21 (Current Financial Year) (Previous Financial Year) Directly sourced from MSMEs/ small producers 66.39% 61.38% Sourced directly from within the district and neighbouring districts NA PRINCIPLE 9 Businesses should engage with and provide value to their consumers in a responsible manner 1. Describe the mechanisms in place to receive and respond to consumer complaints and feedback. Complained and feedback are received annually from beneficiaries on standard feedback format through mail. 2. Turnover of products and/ services as a percentage of turnover from all products/service that carry information about: As a percentage to total turnover Environmental and social parameters relevant to the product THDCIL is producing electricity and is suppling to distribution Safe and responsible usage companies of respective States. Therefore, not applicable. Recycling and/or safe disposal 3. Number of consumer complaints in respect of the following: FY 2020-21 Remarks FY 2019-20 Remarks (Current Financial Year) (Previous Financial Year) Received during Pending resolution Received during Pending resolution the year at end of year the year at end of year Data privacy Advertising Cyber-security Delivery of essential services NIL Restrictive Trade Practices Unfair Trade Practices Other 4. Details of instances of product recalls on account of safety issues: Number Reasons for recall Voluntary recalls NA Forced recalls 5. Does the entity have a framework/ policy on cyber security and risks related to data privacy? (Yes/No) If available, provide a web-link of the policy. THDCIL has IT & Cyber security guidelines available in employee section of its website. THDCIL does not have framework / policy on Cybersecurity and Risk related to Data privacy. The software application having data of its employees and contractors are audited by CERT-in empaneled agencies and vulnerabilities reported by the auditors are closed. 6. Provide details of any corrective actions taken or underway on issues relating to advertising, and delivery of essential services; cyber security and data privacy of customers; re-occurrence of instances of product recalls; penalty / action taken by regulatory authorities on safety of products / services. -NA 144 Annexure -VI to Directors Report SECRETARIAL AUDIT REPORT 2021-22 P.S.R. MURTHY PRACTICING COMPANY SECRETARY C.P. 13090 Form No. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2022 [Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies (Appointment and Remuneration Personnel) Rules, 2014] The Members, THDC India Limited, Tehri Garhwal, Tehri – 249 001 I have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by THDC India Limited (the “company”) CIN U45203UR1988GOI009822. The Company is a Government of India Enterprise and is listed on Bombay Stock Exchange and National Stock Exchange for its Debt Securities issued on Private Placement. So far, the Company issued V series of bonds. The equity of THDC is held by NTPC to the extent of 74.496% and 25.504% by Government of Uttar Pradesh. Therefore, the Company is a Subsidiary Company of NTPC Limited. Secretarial Audit was conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/ statutory compliances and expressing my opinion thereon. Based on my verification of the books, papers, minute books, forms and returns filed and other records maintained by the company and also the information provided by the Company, its officers, agents and authorized representatives during the conduct of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering the financial year ended on 31st March 2022 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: I have examined the books, papers, minute books, forms and returns filed and other records maintained by THDC India Limited for the financial year ended on 31st March 2022 according to the provisions of: (i) The Companies Act, 2013 (the Act) and the rules there under (ii) Depositories Act 1996 and the Regulations and Bye-Laws framed thereunder; (iii) Foreign Exchange Management Act 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings (The Company has only outstanding external borrowings during the period under review); (iv) Implementation and Monitoring of Micro, Small and Medium Enterprises transactions and Returns filing with MCA as notified The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’): (a) Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015; (b) Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (Not applicable to the listed entity during the Review Period); (c) Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (Not applicable to the listed entity during the Review Period); (d) Securities and Exchange Board of India (Buyback of Securities) Regulations, 2018 (Not applicable to the listed entity during the Review Period); 145 (e) Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not applicable to the listed entity during the Review Period); (f) Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations 2021; (g) Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (During the Review Period, the Company listed only debt securities); (v) The Securities and Exchange Bank of India (Registrars to an Issue and Share Transfer Agents) Regulations 1993; (vi) The Debenture Trust Deed dated 23rd August, 2021 for corporate Bonds Series V executed between the Company and Debenture Trustee M/s Vistra ITCL India Limited; (vii) Sector Specific laws – The Electricity Act 2003 and Rules and Regulations made thereunder. I have also examined compliance with the applicable clauses of the Secretarial Standards issued by The Institute of Company Secretaries of India and Corporate Governance Guidelines 2010 issued by the Department of Public Enterprises, Government of India. During the period under review and based on the assurances, the Company has generally complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards, etc. mentioned above subject to the following observations: 1. As per the Articles of Association, the powers to appoint a Director vests with the Government of India. The Government of India appointed two Independent Directors including woman Director on 10th November 2021 and one Independent Director on 28th March 2022. 2. Due to non-availability of Independent Directors, the compliances relating to holding of Audit Committee Meetings, Stake Holders Meetings and Risk Management Committee Meetings as required under the Regulation 18 (2) and 20 (3A) and 21 (3A) of SEBI (LODR) Regulations 2015 were not in place. The Company submitted that till March 2023, the above regulations are applicable on the company on comply or explain basis. I further report that The Board of Directors of the Company, at the end of the financial year stands constituted with Executive Directors, Non-Executive Directors subject to the para-1 above. The changes in the composition of the Board of Directors that took place during the period under review were carried out in compliance with the provisions of the Act. Adequate notice is given to all directors to schedule the Board Meetings. However, Agenda and detailed notes on agenda were sent less than seven days in advance in few meetings. System exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for meaningful participation at the meeting. The decisions in the Board are unanimous and there were no dissenting views in the Minutes of the Board Meeting during the period under Report. I further report that based on the compliance mechanism followed by the Company and on the basis of compliance report placed before the Board periodically which has been taken on record by the Board, I am of the opinion that there are 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. I further report that during the audit period the Board of Directors in their 221st Meeting held on 23rd December 2021 approved term loan of ` 2,500 crore from Bank of Baroda to meet Project funding. Further the Company had passed special resolution in its 33rd Annual General Meeting held on 15th September 2021 approving the issue of Secured/Unsecured Non-convertible non-cumulative bonds on private placement to the extent of ` 3,000 crore to meet the funding needs of the on-going Projects etc. Against this sanction, no issue was made so far. However, the bonds issued till the date of Report is ` 4,850 crore. Except the above, there were no other specific events/actions having a major bearing on the company’s affairs. Sd/- (P.S.R. Murthy) PR No.1134/2021 UDIN A005880D000499439 Place: New Delhi Date: 16th June 2022 146 This Report is to be read with our letter of even date which is annexed as Annexure A and forms integral part of this Report. P.S.R MURTHY PRACTICING COMPANY SECRETARY C.P. 13090 Annexure-A The Members THDC India Limited Tehri Garhwal – 249 001 My Report of even date is to be read along with this letter. 1. Maintenance of secretarial record is the responsibility of the management of the company. My responsibility is to express an opinion on these secretarial records based on my audit. 2. I 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. I believe that the processes and practices, I followed provide a reasonable basis for my opinion. 3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of the company. 4. Wherever required, I have obtained the management representation about the compliance of laws, rules and regulations and happening of events etc. 5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is the responsibility of the management. My examination was limited to the verification of procedures on test basis. 6. The Secretarial Audit Report is neither an 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. Sd/- (P.S.R. Murthy) PR No.1134/2021 UDIN A005880D000499439 Place: New Delhi Date: 16th June 2022 147 STANDALONE FINANCIAL STATEMENTS 2021-22 Financial StatementS 2021-22 Independent Auditors’ Report Comments of the C&AG of India AND MANAGEMENT REPLY 148 Standalone Financial Statements STANDALONE BALANCE SHEET AS AT 31-March-2022 Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    ASSETS Non-Current Assets        (a) Property, Plant and Equipment 2 6,343.47 6,561.85        (b) Right of Use Assets 2 411.72 410.50        (c) Other Intangible Assets 2 0.25 0.36        (d) Capital work-in- progress 3 9,447.39 6,414.30        (e) Investment in Subsidiary Co. 4 14.80 7.40        (f) Financial Assets             (i) Loans 5 36.12 39.24             (ii) Advances 6 0.00 36.12 0.01 39.25        (g) Deferred Tax Assets (Net) 7 836.29 871.31        (h) Non Current Tax Assets Net 8 43.21 32.49        (i) Other Non-Current Assets 9 2,042.24 1,906.22    Current Assets    (a) Inventories 10 40.94 34.94    (b) Financial Assets         (i) Trade Receivables 11 723.72 1,162.03         (ii) Cash and Cash Equivalents 12 87.77 225.08         (iii) Loans 13 9.59 9.43         (iv) Advances 14 8.89 10.33         (v) Others 15 849.21 1,679.18 746.57 2,153.44    (c) Current Tax Assets (Net) 16 60.82 60.79    (d) Other Current Assets 17 42.78 54.35    Regulatory Deferral Account Debit Balance 18 98.69 169.72 Total 21,097.90 18,716.92    EQUITY AND LIABILITIES    Equity        (a) Equity Share Capital 19 3,665.88 3,665.88        (b) Other Equity 20 6,640.27 6,251.55        Total Equity 10,306.15 9,917.43    Non-Current Liabilities    (a) Financial Liabilities         (i) Borrowings 21 6,653.98 5,014.22         (ia) Lease Liabilities 22 29.99 9.19         (ii) Non current Financial Liabilities 23 162.4 6,846.37 28.11 5,051.52    (b) Other Non Current Liabilities 24 816.23 796.53    (c) Provisions 25 176.46 190.37 149 Standalone Financial Statements    Current Liabilities    (a) Financial Liabilities         (i) Borrowings 26 1,352.73 1,233.51         (ia) Lease Liabilities 27 4.17 4.06         (ii) Trade Payables         A. Total outstanding dues of micro 0.60 0.42 enterprises and small enterprises         B. Total outstanding dues of creditors 27.34 24.65 other than micro enterprises and small enterprises         (iii) Others 28 616.44 2,001.28 463.62 1,726.26    (b) Other Current Liabilites 29 87.59 142.95    (c) Provisions 30 348.62 341.63    (d) Current Tax Liabilities (Net) 31 0.00 0.00    Regulatory Deferral Account Credit Balance 32 515.2 550.23    TOTAL 21,097.90 18,716.92 1  Significant Accounting Policies    Disclosures on Financial Instruments and 42 Risk Management    Other Explanatory Notes to Accounts 43    Note 1 to 43 form integral part of the Accounts For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 150 Standalone Financial Statements STANDALONE STATEMENT OF PROFIT & LOSS FOR THE PERIOD ENDED 31-March-2022 Amount in Crore ` Particulars Note No. For the Period For the Period Ended 31-Mar-2022 Ended 31-Mar-2021 INCOME Revenue from Continuing Operations 33 1,921.49 1,796.01 Other Income 34 305.85 705.92 Deferred Revenue on account of Irrigation 16.24 18.8 Component Less: Depreciation on Irrigation Component 2 16.24 0.00 18.8 0.00 Total Income 2227.34 2501.93 EXPENSES Employee Benefits Expense 35 354.11 388.78 Finance Costs 36 134.11 181.93 Depreciation & Amortisation 2 302.65 317.33 Generation Administration and Other Expenses 37 287.06 230.33 Provision for Bad & Doubtful Debts, CWIP and 38 0.00 0.25 Stores & Spares Total Expenses 1,077.93 1,118.62 Profit Before Regulatory Deferral Account 1,149.41 1,383.31 Balances, Exceptional Items and Tax Exceptional Items- (Income)/ Expenses- Net 0.00 35.65 Profit Before Tax and Regulatory Deferral 1,149.41 1,347.66 Account Balances Tax Expenses Current Tax Income Tax 39 189.34 229.60 Deferred tax- (Asset)/ Liability 35.57 68.48 Profit For The Period before regulatory 924.5 1,049.58 deferral account balances Net Movement in Regulatory Deferral Account 40 (29.72) 42.83 Balance Income/ (Expense)- Net of Tax I Profit For The Period from continuing 894.78 1,092.41 operations II OTHER COMPREHENSIVE INCOME (i) Items that will not be classified to Profit or Loss: Re-measurements of the Defined Benefit Plans 41 1.59 0.23 151 Standalone Financial Statements Deferred tax on Re-measurements of the 0.55 0.08 Defined Benefit Plans- Deferred Tax Asset (Liability) Other Comprehensive Income 2.14 0.31 Total Comprehensive Income (I+II) 896.92 1,092.72 Earning per Equity Share (including net movement in regulatory deferral account) Basic (`) 244.08 297.99 Diluted (`) 244.08 297.99 Earning per Equity Share (excluding net movement in regulatory deferral account) Basic (`) 252.19 286.31 Diluted (`) 252.19 286.31 Significant Accounting Policies 1 Disclosures on Financial Instruments and 42 Risk Management Other Explanatory Notes to Accounts 43 Note 1 to 43 form integral part of the Accounts For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 152 Standalone Financial Statements STANDALONE STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31-March-2022 Amount In Crore ` (Figures In Parenthesis Represent Deduction) Particulars For the Period For the Period Ended 31-Mar-2022 Ended 31-Mar-2021    A. CASH FLOW FROM OPERATING ACTIVITIES    Profit Before Exceptional items and Tax 1,149.41 1,383.31    Adjustments for:-            Depreciation 302.65 317.33            Depreciation- Irrigation Component 16.24 18.80            Provisions -        0.25            Advance Against Depreciation (7.60) (7.60)            Late Payment Surcharge (225.46) (660.94)            Finance Cost 134.11 181.93            (Profit)/ Loss on Sale of Assets 0.33 0.23            Other Comprehensive Income (OCI) 1.59 0.23            Prior Period Adjustments through SOCIE -        -                   Net Movement in Regulatory Deferal Account Balance 29.72 (42.83)            Exceptional Items 0.00 (35.65)            Tax on Net Movement in Regulatory Deferal Account 6.29 257.87 (9.07) (237.32) Balance    Cash Flow from Operating profit activities Before Working 1,407.28 1,145.99 Capital Changes    Adjustment For :-            Inventories (6.00) (2.77)            Trade Receivables (including unbilled revenue) 335.67 713.26            Other Assets 13.52 4.01            Loans and Advances ( Current + Non Current) (8.08) (9.78)            Minority Interest -        -                   Trade Payable and Liabilities 261.91 209.47            Provisions (Current + Non Current) (6.92) 61.68            Net Movement in Regulatory Deferal Account Balance (29.72) 560.38 42.83 1,018.70 Cash Flow From Operative Activities Before Taxes 1,967.66 2,164.69     Corporate Tax (189.34) (229.60)  Net Cash From Operations (A) 1,778.32 1,935.09    B. CASH FLOW FROM INVESTING ACTIVITIES    Change in:-            Property, Plant & Equipment and CWIP (3,134.42) (1,760.45)            Profit/ (Loss) on sale of Assets (0.33) (0.23)            Capital Advances (136.52) (327.16)            Investment in Subsidiary Co. (7.40) (7.40)    Net Cash Flow From Investing Activities (B) (3,278.67) (2,095.24) 153 Standalone Financial Statements Particulars For the Period For the Period Ended 31-Mar-2022 Ended 31-Mar-2021    C. CASH FLOW FROM FINANCING ACTIVITIES            Share Capital (Including Pending Allotment) - -                   Borrowings- Non Current 1,639.76 1,067.52            Borrowings- Current (806.88) 243.36            Lease Liability 20.91 (2.63)            Interest and Finance Charges (134.11) (181.93)            Grants -        -                   Late Payment Surcharge 225.46 660.94            Dividend & Tax on Dividend (508.2) (707.75)    Net Cash Flow From Financing Activities ( C) 436.94 1,079.51    D. NET CASH FLOW DURING THE YEAR (A+B+C) (1,063.41) 919.36    E. OPENING CASH & CASH EQUIVALENTS 225.08 (694.28)    F. CLOSING CASH & CASH EQUIVALENTS(D+E) (838.33) 225.08 Note: 1. Previous year’s figures have been Regrouped / Rearranged / Recast wherever necessary. 2. Reconcilation of Cash & cash Equivalents has been made in Note No 43.27 (a) For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 154 STATEMENT OF CHANGES IN EQUITY A. Equity Share Capital (1) Current Reporting Period Ended 31-March-2022 Amount In Crore ` Particulars Note No. As at 31-Mar-2022 Standalone Financial Statements Amount    Balance at the beginning of reporting period 3,665.88    Changes in equity share capital during the period 0.00    Closing Balance at the end of the reporting period 3,665.88 (2) Previous Reporting Period Ended 31-March-2021 Amount In Crore ` Particulars Note No. As at 31-Mar-2021 Amount    Balance at the beginning of reporting period 3,665.88    Changes in equity share capital during the period 0.00    Closing Balance at the end of the reporting period 3,665.88 B. Other Equity- (1) Current Reporting Period Ended 31-March-2022 Amount In Crore ` Reserve & Surplus 01-Apr-2021 To 31-Mar-2022 Other Comprehensive Income Particulars Note Share Application Retained Earnings Debenture Redemption Acturial Gain/ (Loss) Total Non- Total No. Money Pending Reserve & Others controlling Allottment Interests Opening Balance (I) 0.00 6,189.69 79.50 (17.64) 6,251.55 0.00 6,251.55 Profit For The period 894.78 894.78 0.00 894.78 Other Comprehensive Income 2.14 2.14 2.14 Total Comprehensive Income 894.78 2.14 896.92 0.00 896.92 Equity Contribution by 0.00 0.00 Non-Controlling Interest Dividend 508.2 508.2 508.2 155 Tax On Dividend 0.00 0.00 0.00 Amount In Crore ` 156 Reserve & Surplus 01-Apr-2021 To 31-Mar-2022 Other Comprehensive Income Particulars Note Share Application Retained Earnings Debenture Redemption Acturial Gain/ (Loss) Total Non- Total No. Money Pending Reserve & Others controlling Allottment Interests Transfer to Retained Earnings (II) 386.58 388.72 388.72 Transferred/ Adjustment to/from (48.50) (48.50) (48.50) Debenture Redemption Resreve (III) Debenture Redemption Reserve 48.50 48.50 48.50 Addition/ (Utilised/ Adjusted) during the period (IV) Closing Balance (I+II+III+IV) 0.00 6,527.77 128.00 (15.50) 6,640.27 0.00 6,640.27 For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 Standalone Financial Statements (2) Previous Reporting Period Ended 31-March-2021 Amount In Crore ` Reserve & Surplus 01-Apr-2020 To 31-Mar-2021 Other Comprehensive Income Particulars Note Share Application Retained Earnings Debenture Redemption Acturial Gain/ (Loss) Total Non- Total No. Money Pending Reserve & Others controlling Allottment Interests Standalone Financial Statements Opening Balance (I) 0.00 5,845.53 39.00 (17.95) 5,866.58 0.00 5,866.58 Profit For The Year 1,092.41 1,092.41 0.00 1,092.41 Other Comprehensive Income 0.31 0.31 0.31 Total Comprehensive Income 1,092.41 0.31 1,092.72 0.00 1,092.72 Equity Contribution by Non- 0.00 0.00 Controlling Interest Dividend 707.75 707.75 707.75 Tax On Dividend 0.00 0.00 0.00 Transfer to Retained Earnings (II) 384.66 384.97 384.97 Transferred to Debenture (40.50) (40.50) (40.50) Redemption Resreve (III) Debenture Redemption Reserve 40.50 40.50 40.50 Addition/ (Utilised) during the year (IV) Closing Balance (I+II+III+IV+V) 6,189.69 79.50 (17.64) 6,251.55 0.00 6,251.55 For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- 157 (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 Standalone Financial Statements Note -1 Company Information and Significant Accounting Policies A. Reporting entity Company has elected to avail exemption as granted by the Ind AS 101- First time adoption of Ind AS to regard these amounts THDC India Limited (the “Company”) is a company domiciled in as deemed cost at the date of the transition to Ind AS (i.e. as on India and limited by shares (CIN: U45203UR1988GOI009822) April 1, 2015) for the purpose of fair value as prescribed in the and is a Subsidiary of NTPC Limited. The shares of the Company Ind AS. are held by NTPC Limited (74.496%) and Government of Uttar Pradesh (25.504%). The Bonds of the Company are listed on 2.2 PPE are initially measured at cost of acquisition / construction National Stock Exchange of India Limited (NSE) and BSE Limited including decommissioning or restoration cost wherever required. in India. The address of the Company’s registered office is Assets and systems common to more than one generating Bhagirathi Bhawan (Top Terrace) Bhagirathipuram, Tehri, Tehri unit are capitalized on the basis of engineering estimates/ Garhwal -249001, Uttarakhand. The Company is primarily assessments. The cost includes expenditure that is directly involved in the generation and sale of bulk power to State Power attributable to the acquisition/construction of the asset. In cases Utilities. Other business includes providing consultancy services. where final settlement of bills with contractors is pending, but the asset is complete and ready for use, capitalization is done on B. Basis of preparation provisional basis subject to necessary adjustments, in the year of final settlement. 1. These Standalone financial statements have been prepared on going concern basis following accrual system of accounting 2.3 Spares parts, stand-by equipment and servicing equipment and comply with the Indian Accounting Standards (Ind AS) meeting the recognition criteria are capitalized. The carrying prescribed under Section 133 of the Companies Act, 2013 read amount of those spare parts that are replaced is derecognized with the Companies (Indian Accounting Standards) Rules, 2015 when no future economic benefits are expected from their use as amended, and other provisions of the Companies Act, 2013 or upon disposal. Other spare parts are carried as inventory and (to the extent notified and applicable) and the provisions of the recognized in the statement of profit and loss on consumption. Electricity Act, 2003 to the extent applicable. These Standalone financial statements were authorized for issue by the Board of 2.4 Expenditure on major inspection and overhauls of generating unit Directors in its meeting held on 13.05.2022. is capitalized, when it meets the asset recognition criteria. Any remaining carrying amount of the cost of the previous inspection 2. These financial statements are presented in Indian Rupees and overhaul is derecognized. (`) which is the Company’s functional currency. All financial information presented in (`) has been rounded to the nearest crore If the cost of the replaced part or earlier major inspection / (up to two decimals), except when indicated otherwise. overhaul is not available, the estimated cost of similar new parts/ major inspection /overhaul is used as an indication to arrive at C. Significant accounting policies cost of the existing part/inspection /overhaul component at the time it was acquired or inspection carried out. A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These 2.5 An item of PPE is derecognized upon disposal or when no future accounting policies have been applied consistently to all periods economic benefits are expected from its use or disposal. Any presented in the financial statements. gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the 1. Estimates & Assumptions carrying amount of the asset) is included in the Statement of Profit and Loss for the year in which the asset is derecognized. The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets, liabilities, 2.6 PPE created on land not belonging to the Company, but under the revenue and expenses during the reporting period. Although control and possession of the Company, are included in PPE. such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual 2.7 In respect of land acquired through Special Land Acquisition Officer results could differ from these estimates and assumptions. Such (SLAO)/on right to use, those portions of land are capitalized differences are recognized in the year in which the actual results which are utilized/intended to be utilized for construction of are crystallized. buildings and infrastructural facilities of the Company. Other lands acquired including lands under submergence are accounted for 2. Property Plant & Equipment (PPE) as per their use. 2.1 Property, Plant and Equipment (PPE) up to March 31, 2015 were Cost of land acquired through SLAO is capitalized on the basis of carried in the Balance Sheet in accordance with Indian GAAP. The 158 Standalone Financial Statements compensation paid through SLAO or directly by the Company. Date of commercial operation of integrated coal mines shall be determined on the occurring of earliest of following milestones as Payments made/liabilities created provisionally towards provided in CERC tariff regulations: compensation, rehabilitation of the outsees and other expenses relatable to land in possession are treated as cost of land. 1) The first date of the year succeeding the year in which 25 % of the peak rated capacity as per the mining plan is 3. Capital work in progress achieved; or 3.1 Expenditure incurred on assets under construction (including 2) The first date of the year succeeding the year in which the a project) is carried at cost under Capital work in Progress. value of production exceeds the total expenditure in that Such costs comprise purchase price of asset including import year; or duties, non-refundable taxes (after deducting trade discounts and rebates) and costs that are directly attributable to bring the asset 3) The date of two years from the date of commencement of to the location and condition necessary for it to be capable of production; operating in the manner intended by management. On the date of commercial operation, the assets under capital 3.2 Cost incurred towards lease amount and rent on right-of-use work-in-progress are classified as a component of property, land and compensation for land and properties etc. used for plant and equipment under ‘Mining property’. submergence and other purposes (such as re- settlement of oustees, construction of new Township, afforestation, expenses Gains and losses on de-recognition of assets referred above, are on maintenance and other facilities in there-settlement colonies determined as the difference between the net disposal proceeds, until takeover of the same by the local authorities etc.) and if any, and the carrying amount of respective assets and are where construction of such alternative facilities is a specific recognized in the statement of profit and loss. pre-condition for the acquisition of the land for the purpose of the project, is carried forward in the Capital Work in Progress 4.2 Stripping activity expense/adjustment (Rehabilitation). The said asset is capitalized as Land under submergence from the date of commercial operation. Expenditure incurred on removal of mine waste materials (overburden) necessary to extract the coal reserves isreferredto 3.3 Deposit works are accounted for on the basis of statements of asstripping cost. TheCompanyhas to incur suchexpensesover account received from the Agencies concerned. the life of the mine as technically estimated. 3.4 In respect of supply-cum-erection contracts, the value of supplies Cost of stripping is charged on technically evaluated average received at site is treated as Capital-Work-in-Progress. stripping ratio at each mine with due adjustment for stripping activity asset and ratio-variance account after the mines are 3.5 Claims for price variation in case of contracts are accounted for brought to revenue. on acceptance. Net of the balances of stripping activity asset and ratio variance at 3.6 Cost directly attributable to projects under construction the Balance Sheet date is shown as ‘Stripping activity adjustment’ include costs of employee benefits, expenditure in relation to under the head‘Non-current assets/Non-current provisions’ as survey and investigation activities of the projects, cost of site the case may be, and adjusted as provided in the CERC Tariff preparation, initial delivery and handling charges, installation Regulations and assembly costs, professional fees, depreciation on assets used in construction of project, and other costs attributable to 4.3 Mines closure, site restoration and decommissioning construction of projects. Such costs are allocated on systematic obligations basis over Construction projects/Capital Work in Progress. The Company’s obligations for land reclamation and 4. Development expenditure on coalmines decommissioning of structure consist of spending at mines in accordance with the guidelines from Ministry of Coal, 4.1 Once proved reserves are determined and development of mines/ Government of India. The Company estimates its obligations for project is sanctioned, exploration and evaluation assets are mine closure, site restoration and decommissioning based on the transferred to ‘Development of coal mines’ under Capital work-in detailed calculation and technical assessment of the amount and progress. timing of future cash spending for the required work and provided for as per approved mine closure plan. The estimate of expenses Subsequent expenditure is capitalized only where it either is escalated for inflation and then discounted at a pre-tax discount enhances the economic benefits of the development/producing rate that reflects current market assessment of the time value asset or replaces part of the existing development/producing of money and risk, such that the amount of provision reflects asset. Any remaining costs associated with the part replaced are the present value of expenditure required to settle the obligation. expensed. The Company recognizes a corresponding asset under property, plant and equipment as a separate item for the cost associated The development expenditure capitalized is net of value of coal with such obligation. On being brought to revenue, the mines extracted during development phase. closure, site restoration and decommissioning obligations are amortized on straight line method over the balance life of the mine. 159 Standalone Financial Statements The value of the obligation is progressively increased over time 7.2 However, when the Company determines that transaction price as the effect of discounting unwinds and the same is recognized does not represent the fair value, it uses inter-alia valuation as finance costs. techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, Further, a specific escrow account is maintained for this purpose maximizing the use of relevant observable inputs and minimizing as per approved mine closure plan. The progressive mine closure the use of unobservable inputs. expenses incurred on year to year basis, forming part of the total mine closure obligation, are initially recognized as receivable 7.3 All financial assets and financial liabilities for which fair value is from escrow account and thereafter adjusted with the obligation measured or disclosed in the financial statements are categorized in the year in which the amount is withdrawn from escrow within the fair value hierarchy. This categorization is based on the account after concurrence of the certifying agency. lowest level input that is significant to the fair value measurement as a whole: 5. Intangible Assets Level 1 - Quoted (unadjusted) market prices in active markets for 5.1 Upto March 31, 2015, Intangible assets were carried in the identical assets or liabilities. Balance Sheet in accordance with Indian GAAP . The Company has elected to avail the exemption granted under Ind AS 101, Level 2 - Valuation techniques for which the lowest level input “First time adoption of Ind AS” to regard those amounts as that is significant to the fair value measurement is directly or deemed cost at the date of the transition to Ind AS (i.e. as on indirectly observable. April 1, 2015). Level 3 - Valuation techniques for which the lowest level input 5.2 Intangible assets acquired separately are measured on initial that is significant to the fair value measurement is unobservable. recognition at cost. After initial recognition, intangible assets are carried at cost less any accumulated amortization and 7.4 Financial assets and financial liabilities are recognized at fair accumulated impairment losses. value on a recurring basis. The Company reviews the fair value techniques as to be adopted at the end of each reporting period 5.3 Software (not being an integral part of the related hardware) and determines the fair value accordingly applying any of the acquired for internal use, is stated at cost of acquisition less levels specified above deemed suitable. accumulated amortization and impairment losses if any. 8. Financial assets other than investment in subsidiaries and 5.4 An item of Intangible asset is derecognized upon disposal or joint ventures. when no future economic benefits are expected from its use or disposal. Gains or losses arising from de-recognition of an 8.1 A financial asset includes inter-alia any asset that is cash, intangible asset are recognized in the Statement of Profit and contractual obligation to receive cash or another financial asset Loss of the year in when the asset is derecognized. or to exchange financial asset or financial liability under condition that are potentially favorable to the Company. A financial asset 6. Foreign Currency Transactions is recognized under the circumstances when the Company becomes a party to the contractual provisions of the instrument. 6.1 The Company has elected to avail the exemption available under Ind AS 101, First time adoption of Ind AS with regard to 8.2 Financial assets of the Company comprise cash and cash continuation of policy for accounting of exchange differences equivalents, Bank Balances, Advances to employees, security arising from translation of long-term foreign currency monetary deposit, claims recoverable etc. liabilities. Accordingly, exchange differences arising on settlement or translation of monetary items are recognized in the statement 8.3 Based on existing business model of the company and contractual of profit and loss in the year in which it arises with the exception cash flow characteristics of the financial assets, classifications that exchange differences on long term monetary items related to have been made as follows: acquisition of property, plant and equipment recognized up to 31 March 2016 are adjusted to the carrying cost of PPE. 1.) Financial Assets at amortized cost, 6.2 Transactions in foreign currency are initially recorded at exchange 2.) Financial Assets at fair value through other comprehensive rate prevailing on the date of transaction. At the balance sheet income, and date, foreign currency monetary items are reported using the closing rate. Non-monetary items denominated in foreign 3.) Financial Assets at fair value through Profit / Loss currency are reported at the exchange rate ruling at the date of transaction. 8.4 Initial recognition and measurement:- All financial assets except trade receivables are recognized initially at fair value including 7. Fair Value Measurement the transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair 7.1 Fair value is the price that would be received to sell an asset value through profit or loss are expensed in Statement of Profit or paid to transfer a liability in an orderly transaction between and Loss. Where transaction price is not the measure of fair value market participants at the measurement date. Normally at initial and fair value is determined using a valuation method that uses recognition, the transaction price is the best evidence of fair data from observable market, the difference between transaction value. 160 Standalone Financial Statements price and fair value is recognized in Statement of Profit and Loss financial liabilities and subsequently measured at amortized cost. and in other cases spread over life of the financial instrument Difference arising if any, between the proceeds (net of transaction using EIR (Effective Interest Rate) method.EIR is calculated at the costs) and the fair value at initial recognition is recognized in the end of every reporting period. Statement of Profit and Loss or in the “Expenditure Attributable to Construction” if another standard permits inclusion of such 8.5 The company measures the trade receivables at their transaction cost in the carrying amount of an asset over the period of the price as it does not contain a significant financing component. borrowings using the effective rate of interest. 8.6 Subsequent measurement:- After initial measurement, financial 11.3.2 Borrowings are classified as current liabilities unless the assets classified at amortized cost are subsequently measured company has an unconditional right to defer settlement of the at amortized cost using EIR method. Amortized cost is calculated liability for at least 12 months after the reporting period. by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR 11.4 Subsequent measurement amortization is included in finance income in the profit or loss. 11.4.1After initial recognition, financial liabilities are subsequently 8.7 De-recognition:- A financial asset is derecognized when all the measured at amortized cost using the EIR method. EIR is cash flows associated with the said financial asset has been calculated at the end of every reporting period Gains and losses realized or such rights have expired. are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. 9. Cash and cash equivalents 11.4.2Amortized cost is calculated by taking into account any discount Cash and cash equivalents in the balance sheet comprise or premium on acquisition and fees or costs that are an integral cash at banks, cash on hand and short-term deposits with an part of the EIR. The EIR amortization is included as finance costs original maturity of three months or less, which are subject to an in the statement of profit and loss. insignificant risk of changes in value. 11.5 De-recognition A financial liability is derecognized when the 10. Inventories obligation under the liability is discharged or cancelled or expires. 10.1 Inventories mainly comprise stores and spare parts to be used 12. Government Grants for maintenance of Property, Plant and Equipment’s and are valued at costs or net realizable value (NRV) whichever is lower. Grants-in-Aid received from the Central/State Government/ 12.1 The cost is determined using weighted average cost formula other authorities towards capital expenditure is treated initially and NRV is the estimated selling price in the ordinary course of as non-operating deferred income under noncurrent liability and business, less the selling costs necessary to make the sale. subsequently adjusted as income in the same proportion as the depreciation written off on the assets acquired out of such 10.2 Carrying amount of inventory is assessed on each reporting contribution/grants-in-aid. date to reflect the same at NRV (Net Realizable Value). Incase reduction of the carrying amount, suitable adjustment is made 13. Provisions, Contingent Liabilities and Contingent Assets by reducing the carrying amount of the inventory to recognize at NRV and such amount reduced is also recognized as expenses 13.1 Provisions are recognized when the Company has a present in the Statement of Profit and Loss. Subsequent to reduction in legal or constructive obligation as a result of a past event and the inventory value in case the NRV increases (upto the original it is probable that an outflow of resources embodying economic cost), value of inventory is enhanced to recognize at NRV and benefits will be required to settle the obligation and a reliable incremental amount is recognized as income in the Statement of estimate can be made of the amount of the obligation. Such Profit and Loss. All inventory losses occur in natural course of provisions are determined based on management estimate of the business is recognized as expenses in the Statement of Profit and amount required to settle the obligation at the balance sheet date. Loss. 13.2 Contingent liabilities are disclosed on the basis of judgment of 11. Financial liabilities management/ independent experts. These are reviewed at each balance sheet date and reflected in the financial statements using Financial liabilities of the Company are contractual obligation 11.1 current estimates made by the management. to deliver cash or another financial asset to another entity or to exchange financial assets or financial liabilities with another entity 13.3 Contingent assets are disclosed in the financial statements when under conditions that are potentially unfavorable to the Company. inflow of economic benefits is probable. 11.2 The Company’s financial liabilities include loans & borrowings, 14. Revenue Recognition and Other Income trade and other payables. 14.1 Under Ind AS 115, revenue is recognized when the entity satisfies 11.3 Classification, initial recognition and measurement a performance obligation by transferring promised goods or services to a customer. An asset is transferred when control is 11.3.1 Financial liabilities are recognized initially at fair value minus transferred that is either over time or at a point in time. The transaction costs that are directly attributable to the issue of company recognizes revenue in respect of amounts to which it has a right to invoice. 161 Standalone Financial Statements 14.2 Sale of energy is accounted for as per final tariff notified by in which error occurred. If the error occurred before the earliest Central Electricity Regulatory Commission (CERC). In case of period presented, opening balances of assets, liabilities and Power Station where final tariff is not notified, recognition of equity for the earliest period presented, are restated. revenue is based on the parameters and method provided in the applicable Regulations framed by the appropriate authority i.e. 15.3 Net income/expenditure prior to Commercial operation is adjusted CERC. The recognition of Revenue would be independent of the directly in the cost of related assets and systems. Provisional Rate adopted for the purpose of collection pending notification of ‘Annual Fixed Charges’ by CERC. 15.4 Preliminary expenses on account of new projects incurred prior to approval of feasibility report are charged to revenue. Recovery/refund towards foreign currency variation in respect of foreign currency loans are accounted for on year to year basis. 15.5 Expenditure on R & D are incurred as per approved R & D Plan of the Company. 14.3 Amount realized from sale of power as generated from Wind Power Projects has been recognized as Revenue from operation 15.6 Expenditure on CSR activities shall be made as per the provisions in compliance with Ind AS 115 and Assets have been recognized of Section 135 of the Companies Act 2013. as owned assets of the company in compliance with Ind AS16. 15.7 Provision for doubtful debts / advances / claims outstanding 14.4 Adjustments arising out of finalization of Regional Energy over three years (except Government dues) is made unless the Account (REA), which may not be material, are effected in the amount is considered recoverable as per management estimate. year of respective finalization. However, Debts / advances / claims shall be written off on case to case basis when unreliability is finally established. 14.5 Incentive/disincentives are accounted for based on the applicable norms notified/approved by the Central Electricity Regulatory 16. Employee benefits Commission or agreements with the beneficiaries. In case of Power Stations where the same have not been notified / 16.1 The company has established a separate Trust for administration approved / agreed with beneficiaries, incentives/disincentives are of Provident Fund, employees defined contribution superannuation accounted for on provisional basis. scheme for providing pension and post retirement medical benefit. The company’s contribution to the Funds is charged to 14.6 Advance against depreciation being considered as deferred expenditure. The liability of the company in respect of shortfall (if income up to 31March 2009 is recognised as sales on straight any) in interest on investments made by PF Trust is ascertained line basis over balance useful life of 28 years after completion of and provided annually on actuarial valuation at the yearend. 12 years from the date of commercial operation of the project, considering the total useful life of the project as 40 years. 16.2 Liability for employee benefits in respect of gratuity, leave encashment and post retirement medical benefits, baggage 14.7 Income from consultancy work is accounted for on the basis allowance, financial package for dependent of deceased of actual progress/technical assessment of work executed or employees etc. as defined in Ind AS-19 is accounted for on cost reimbursable in line with terms of respective consultancy accrual basis based on actuarial valuation determined as at the contracts. year end. 14.8 Late Payment Surcharge recoverable from trade receivables 16.3 Re-measurements comprising of actuarial gains and losses, the for sale of energy and liquidated damages/warranty claims are effect of the asset ceiling, excluding amounts included in net recognized when no significant uncertainty as to measurability or interest on the net defined benefit liability and the return on plan collectivity exists. assets (excluding amounts included in net interest on the net defined benefit liability), are recognized immediately in the OCI 14.9 Interest earned on advances to contractors as per the terms of in the period in which they occur. Re-measurements are not contract, are reduced from the cost incurred on construction of reclassified to profit or loss in subsequent periods. the respective asset by credit to related Capital Work-in-Progress Account. 17. Borrowing Cost 14.10 Value of scrap is accounted for at the time of sale. 17.1 Borrowing costs that are directly attributable to the acquisition, construction/exploration/ development or erection of qualifying 14.11 Insurance claims for loss of profit are accounted for in the year assets are capitalized as part of cost of such asset until such of acceptance. Other insurance claims are accounted for based time the assets are substantially ready for their intended use. on certainty of realization. Qualifying assets are assets which necessarily take substantial period of time to get ready for their intended use or sale. 15. Expenditure 17.2 When the Company borrows funds specifically for the purpose 15.1 Prepaid expenses of ` 5,00,000/- or below in each case, are of obtaining a qualifying asset, the borrowing costs incurred accounted for in their natural heads of accounts. are capitalized. When Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the 15.2 Material prior period errors are corrected retrospectively by capitalization of the borrowing costs is computed based on the restating the comparative amounts for the prior periods presented weighted average cost of all borrowings that are outstanding 162 Standalone Financial Statements during the period and used for the acquisition, construction/ exceeds its recoverable amount. An impaired loss is charged to exploration or erection of the qualifying asset. However, Statement of Profit and Loss in the year in which an asset is borrowing costs applicable to borrowings made specifically for identified as impaired. The impairment loss recognized in prior the purpose of obtaining a qualifying asset, are excluded from accounting periods is reversed if there is a change in the estimate this calculation, until substantially all the activities necessary to of the recoverable amount. prepare that asset for its intended use or sale are complete. 20. Leases Such borrowing costs are apportioned on the average balance of capital work in progress for the year. Other borrowing costs are 20.1 The Company assesses whether a contract contains a lease, at recognized as expenses in the period in which they are incurred. inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset 18. Depreciation & Amortization for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an 18.1 Depreciation on additions to /deductions from Property, Plant & identified asset, the Company assesses whether: Equipment during the year is charged on pro-rata basis from / up to the date on which the asset is ready for use /disposal. (1) the contact involves the use of an identified asset Depreciation is charged on straight-line method following 18.2 (2) the Company has substantially all of the economic benefits the rates & useful life of the projects notified by the Central from use of the asset through the period of the lease and Electricity Regulatory Commission (CERC) for the purpose of fixation of tariff. In case of addition and change in cost of asset (3) the Company has the right to direct the use of the asset. due to increase/decrease in long-term liability on account of exchange fluctuations, award of Courts, etc, revised unamortized At the date of commencement of the lease, the Company depreciable amount is provided prospectively over the residual recognizes a right-of-use asset and a corresponding lease useful life of the asset. liability for all lease arrangements in which it is a lessee, except for: Further, the life of the projects for Solar and Wind Power Plants which are not governed by CERC Tariff Regulations has been a) leases with a term of twelve months or less (short-term considered as 25 years and the depreciation rates have been leases) and worked out accordingly. b) low value leases. For these short-term and low value 18.3 Laptops provided to employees under Laptop scheme for official leases, the Company recognizes the lease payments as an purpose are being written off over a period of four year with nil operating expense on a straight line basis over the term of salvage value.The Depreciation on these items is charged @25% the lease. pa on straight line basis. Certain lease arrangements include the options to extend or 18.4 Temporary erections are depreciated fully (100%) in the terminate the lease before the end of the lease term. Right-of year of acquisition /capitalization by retaining 1/- as WDV use assets and lease liabilities include these options when it is reasonably certain that they will be exercised. In respect of Assets costing up to ` 5000/- but more than 18.5 ` 1500/- (excluding immovable assets) 100% depreciation is The right-of-use assets are initially recognized at cost, which provided in the year of purchase. comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of 18.6 Low value items costing up to ` 1500/-, which are in the nature the lease plus any initial direct costs less any lease incentives. of assets are not capitalized and charged to revenue They are subsequently measured at cost less accumulated depreciation and impairment losses. 18.7 Cost of Right-of-use Land is amortized over the lease period or life of related project, whichever is less. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term 18.8 Cost of computer Software is recognized as intangible asset and and useful life of the underlying asset, if the lease transfers amortized on straight line method over a period of legal right to ownership of the underlying asset by the end of lease term or if use or 3 years, whichever is earlier. the cost of right-of-use assets reflects that the purchase option will be exercised. Otherwise, Right-of-use assets are depreciated Spares parts procured along with the Plant & Machinery or 18.9 /amortized from the commencement date on a straight-line basis subsequently which are capitalized and added in the carrying over the shorter of the lease term and useful life of the underlying amount of such item are depreciated over the residual useful life asset. of the related plant and machinery at the rates and methodology notified by CERC. Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying 19. Impairment of non-financial assets other than inventories amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value 19.1 The asset is treated as impaired, when carrying cost of assets less cost to sell and the value-in-use) is determined on an 163 Standalone Financial Statements individual asset basis unless the asset does not generate cash 21.2.3 Deferred tax is recognized in the Statement of Profit and Loss flows that are largely independent of those from other assets. In except to the extent that it relates to items recognized directly such cases, the recoverable amount is determined for the Cash in other comprehensive income or equity, in which case it is Generating Unit (CGU) to which the asset belongs. recognized in other comprehensive income or equity. Deferred tax assets and liabilities are offset when there is a legally The lease liability is initially measured at amortized cost at the enforceable right to offset current tax assets against current tax present value of the future lease payments. The lease payments liabilities, and when the deferred income tax assets and liabilities are discounted using the interest rate implicit in the lease or, if not relate to income taxes levied by the same taxation authority on readily determinable, using the incremental borrowing rate. Lease either the taxable entity or different taxable entities where there is liabilities are re-measured with a corresponding adjustment to the an intention to settle the balances on a net basis. related right of use asset if the Company changes its assessment whether it will exercise an extension or a termination option. The deferred tax for the current period to the extent it forms part of current tax in the future years and affects the computation 21. Income taxes of return on equity (ROE), an element of tariff computation as per CERC Regulation is debited / credited to regulatory deferral Income tax expense comprises of current and deferred tax. Tax account balance. is recognized in the Statement of Profit and Loss, except to the extent that it relates to items recognized directly in equity or other 21.2.4 When there is uncertainty regarding income tax treatments, comprehensive income. In this case the tax is also recognized the Company assesses whether a tax authority is likely to directly in equity or in other comprehensive income. accept an uncertain tax treatment. If it concludes that the tax authority is unlikely to accept an uncertain tax treatment, the 21.1 Current Income Tax effect of the uncertainty on taxable income, tax bases and unused tax losses and unused tax credits is recognized. The The current tax is based on taxable profit for the year under effect of the uncertainty is recognized using the method that, the Income Tax Act, 1961. The current income tax charge is in each case, best reflects the outcome of the uncertainty: the calculated on the basis of the tax laws enacted or substantively most likely outcome or the expected value. For each case, the enacted at the balance sheet date in India where the Company Company evaluates whether to consider each uncertain tax operates and generates taxable income. treatment separately, or in conjunction with another or several other uncertain tax treatments, based on the approach that best 21.2 Deferred Tax prefixes the resolution of uncertainty. 21.2.1 Deferred tax is recognized based upon balance sheet approach. 22. Statement of Cash Flows Differences between the carrying amounts of assets and liabilities in the company’s financial statements and the corresponding tax 22.1 Statement of cash flows is prepared in accordance with the indirect bases used in the computation of taxable profit are accounted method prescribed in the Ind AS 7. Cash and cash equivalents for for using the balance sheet method. Deferred tax liabilities are the purpose of Statement of cash flows is inclusive of cash on generally recognized for all taxable temporary differences, and hand, deposits held at call with financial institutions, other short- deferred tax assets are generally recognized for all deductible term, highly liquid investments with original maturities of three temporary differences, unused tax losses and unused tax credits months or less that are readily convertible to known amounts of to the extent that it is probable that future taxable profits will be cash and which are subject to an insignificant risk of changes available against which those deductible temporary differences, in value, and bank overdrafts. However, for Balance Sheet unused tax losses and unused tax credits can be utilized. presentation, Bank overdrafts are shown within borrowings in Such assets and liabilities are not recognized if the temporary current liabilities in the balance sheet. difference arises from the initial recognition of an asset or liability in the instances where the transaction affects neither the taxable 23. Current versus non-current classification- profit or loss nor the accounting profit or loss. The Company presents assets and liabilities in the Balance Sheet 21.2.2 The carrying amount of deferred tax assets is reviewed at each based on current/non-current classification. balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available against 23.1 An asset is classified as current when it is: which the temporary differences can be utilized. • Expected to be realized or intended to be sold or consumed Deferred tax assets and liabilities are measured at the tax rates in the normal operating cycle that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) • Held primarily for the purpose of trading that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets • Expected to be realized within twelve months after the reflects the tax consequences that would follow from the manner reporting period, or in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve 164 Standalone Financial Statements months after the reporting period. in which they are approved by the shareholders and the Board of Directors respectively. All other assets are classified as non-current. 27. OperatingSegments 23.2 A liability is classified as current when it is 27.1 In accordance with Ind AS 108, the operating segments used • Expected to be settled in the normal operating cycle to present segment information are identified on the basis of internal reports used by the Company’s management to allocate • Held primarily for the purpose of trading resources to the segments and assess their performance. The Board of Directors is collectively the Company’s ‘Chief Operating • Due to be settled within twelve months after the reporting Decision Maker’ or ‘CODM’ within the meaning of Ind AS 108. period, or The indicators used for internal reporting purposes may evolve in connection with performance assessment measures put in • Having no unconditional right to defer the settlement of the place. liability for at least twelve months after the reporting period. Segment results that are reported to the CODM include items All other liabilities are classified as non-current. directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise 23.3 Deferred tax assets and liabilities are classified as non-current. mainly corporate expenses, finance costs, income tax expenses and corporate income. 24. Regulatory deferral account balances Revenue directly attributable to the segments is considered as 24.1 Expense/Income recognized in the statement of Profit and Loss segment revenue. Expenses directly attributable to the segments to the extent recoverable from or payable to the beneficiaries in and common expenses allocated on a reasonable basis are subsequent periods as per CERC Tariff regulations are recognized considered as segment expenses. as “Regulatory Deferral Account Balances”. Segment capital expenditure is the total cost incurred during the 24.2 These Regulatory Deferral Account Balances are adjusted from period to acquire property, plant and equipment, and intangible the year in which the same become recoverable from or payable assets other than goodwill. to the beneficiaries. Segment assets comprise property, plant and equipment, Regulatory Deferral Account Balances are evaluated at each 24.3 intangible assets, trade and other receivables, inventories and balance sheet date to ensure that the underlying activities meet other assets that can be directly or reasonably allocated to the recognition criteria and it is probable that future economic segments. For the purpose of segment reporting, property, benefits associated with such balances will flow to the entity. plant and equipment have been allocated to segments based If these criteria are not met, the Regulatory Deferral Account on the extent of usage of assets for operations attributable Balances are derecognized. to the respective segments. Segment assets do not include investments, income tax assets, capital work in progress, capital 25. Earnings per share advances, corporate assets and other current assets that cannot reasonably be allocated to segments. 25.1 Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company Segment liabilities include all operating liabilities in respect of by the weighted average number of equity shares outstanding a segment and consist principally of trade and other payables, during the financial year. Diluted earnings per equity share is employee benefits and provisions. Segment liabilities do not computed by dividing the net profit or loss attributable to equity include equity, income tax liabilities, loans and borrowings shareholders of the Company by the weighted average number and other liabilities and provisions that cannot reasonably be of equity shares considered for deriving basic earnings per equity allocated to segments. share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive Electricity generation is the principal business activity of the potential equity shares. company. Project Management and Consultancy works do not form a reportable segment as per the Ind AS -108 - ‘Operating The number of equity shares and potentially dilutive equity shares Segments’. are adjusted retrospectively for all periods presented for any bonus shares issued during the financial year. Basic and diluted 28. Miscellaneous earnings per equity share are also computed using the earnings amounts excluding the movements in regulatory deferral account 28.1 Each material class of similar items is presented separately in the balances. financial statements. Items of a dissimilar nature or function are presented separately unless they are immaterial. 26. Dividends Dividends and interim dividends payable to the Company’s 26.1 shareholders are recognized as changes in equity in the period 165 Note :-2 166 PROPERTY PLANT & EQUIPMENT & INTANGIBLE ASSETS AS AT 31-March-2022 Amount in Crore ` Particulars Gross Block Depreciation Net Block As at 01- Addition Sales / As at 31- As at 01- For The Period Sales/ As at 31- As at 31- As at 31- Apr-2021 During the Adjustment Mar-2022 Apr-2021 01-Apr-2021 To Adjustment Mar-2022 Mar-2022 Mar-2021 Period During the 31-Mar-2022 During the Period Period A. Prpoerty Plant & Equipment Other Assets 1. Land Free Hold 39.83 3.96 -        43.79 -        -        -        -        43.79 39.83 2. Land Under Submergence 1,698.23 25.13 (0.01) 1,723.35 708.48 39.39 -        747.87 975.48 989.75 3. Buildings 1,069.34 43.38 (1.14) 1,111.58 321.50 37.25 -        358.75 752.83 747.84 4. Building Temp. Structures 24.64 1.99 (0.08) 26.55 24.50 2.05 -        26.55 -        0.14 5. Road, Bridge & Culverts 186.68 4.01 -        190.69 51.71 7.46 -        59.17 131.52 134.97 6. Drainage, Sewerage & Water Supply 22.67 4.22 -        26.89 10.24 1.06 -        11.30 15.59 12.43 7. Construction Plant & Machinery 24.47 -        -        24.47 16.10 1.33 -        17.43 7.04 8.37 8. Generation Plant & Machinery 3,418.64 14.47 -        3,433.11 1,607.83 92.3 -        1,700.13 1,732.98 1,810.81 9. EDP Machines 19.20 4.43 (0.69) 22.94 13.46 2.67 (0.59) 15.54 7.40 5.74 10. Electrical Installations 46.55 1.21 (1.20) 46.56 11.55 1.26 -        12.81 33.75 35.00 11. Transmission Lines 32.21 -        (0.01) 32.20 17.44 1.37 -        18.81 13.39 14.77 12. Office & Other Equipment 69.86 4.84 (0.09) 74.61 52.3 3.94 (0.04) 56.2 18.41 17.56 13. Furniture & Fixtures 34.05 4.61 (0.26) 38.40 19.37 2.38 (0.19) 21.56 16.84 14.68 14. Vehicles 23.32 1.54 (1.12) 23.74 12.49 1.67 (0.67) 13.49 10.25 10.83  15. Railway Sidings 1.22 -        -        1.22 0.59 0.08 -        0.67 0.55 0.63 16. Hydraulic Works- Dam & Spillways 5,190.62 -        -        5,190.62 3,168.59 105.29 -        3,273.88 1,916.74 2,022.03 17. Hydraulic Works- Tunnel,Penstock,Canals etc 1,606.20 0.12 (0.11) 1,606.21 909.73 29.57 -        939.3 666.91 696.47 Sub Total 13,507.73 113.91 (4.71) 13,616.93 6,945.88 329.07 (1.49) 7,273.46 6,343.47 6,561.85 Figures For Previous Period 13,199.32 308.93 (0.52) 13,507.73 6,607.33 338.92 (0.37) 6,945.88 6,561.85 6,591.99 Standalone Financial Statements Amount in Crore ` Particulars Gross Block Depreciation Net Block As at 01- Addition Sales / As at 31- As at 01- For The Period Sales/ As at 31- As at 31- As at 31- Apr-2021 During the Adjustment Mar-2022 Apr-2021 01-Apr-2021 To Adjustment Mar-2022 Mar-2022 Mar-2021 Period During the 31-Mar-2022 During the Standalone Financial Statements Period Period B. Intagible Assets 1. Intangible Assets-Software 5.10 0.08 -        5.18 4.74 0.19 -        4.93 0.25 0.36 Sub Total 5.10 0.08 -        5.18 4.74 0.19 -        4.93 0.25 0.36 Figures For Previous Period 4.71 0.39 -        5.10 4.51 0.23 -        4.74 0.36 0.20 C. Right of Use Assets 1. Right of Use - Land 433.05 0.02 (49.04) 384.03 28.22 12.25 -        40.47 343.56 404.83 2. Right of Use - Coal Bearing Land -        60.60 -        60.60 -        1.04 -        1.04 59.56 -        3. Right of Use - Building 3.99 8.43 (3.35) 9.07 2.40 1.59 (2.94) 1.05 8.02 1.59 4. Right of Use - Vehicle 8.77 0.10 (0.15) 8.72 4.69 3.61 (0.16) 8.14 0.58 4.08 Sub Total 445.81 69.15 (52.54) 462.42 35.31 18.49 (3.1) 50.70 411.72 410.5 Figures For Previous Period 395.21 50.76 (0.16) 445.81 14.50 20.93 (0.12) 35.31 410.50 380.71 Detail of Depreciation Current Previous Year Year Depreciation transferred to EDC 28.86 23.95 Depreciation transferred to statement of P&L 302.65 317.33 Depreciation transferred to statement of P&L 16.24 347.75 18.80 360.08 -Irrigation Contribution from GOUP Fixed Assets Costing More Than ` 1500.00 But 0.14 0.16 Less Than ` 5000.00 Procured and Depreciated Fully During The Year 2.1 The Land measuring 14.37 acres transferred free of cost by Govt. of Uttarakhand for construction of Koteshwar Hydro Electric Project (4x100 MW) to the Company has been accounted for at notional value of ` 1/-. 2.2 The land under submergence has been amortised considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials. 2.3 Details regarding title deeds of the immovable properties not held in the name of the Company are disclosed vide Note No. 43.5 2.4 During the year the Company has not revalued any of it’s Property, Plant & Equipment and Intangible Assets. 2.5 The Comany is not holding any benami property. 167 2.6 Details regarding unauthorized occupants on the land owned by the Company is disclosed vide Note No. 43.6 Note :-2 168 PROPERTY PLANT & EQUIPMENT & INTANGIBLE ASSETS AS AT 31-March-2021 Amount in Crore ` Particulars Gross Block Depreciation Net Block As at 01- Addition Sales / As at 31- As at 01- For The Sales/ As at 31- As at 31- As at Apr-2020 During the Adjustment Mar-2021 Apr-2020 Period 01- Adjustment Mar-2021 Mar-2021 31-Mar- Period During the Apr-2020 To During the 2020 Period 31-Mar-2021 Period A. Prpoerty Plant & Equipment Other Assets 1. Land Free Hold 38.25 1.58 -        39.83 -        -        -        -        39.83 38.25 2. Land Under Submergence 1,687.50 10.73 -        1,698.23 669.62 38.86 -        708.48 989.75 1,017.88 3. Buildings 1,049.38 19.96 -        1,069.34 287.09 34.41 -        321.50 747.84 762.29 4. Building Temp. Structures 24.39 0.25 -        24.64 24.39 0.11 -        24.50 0.14 -        5. Road, Bridge & Culverts 173.65 13.05 (0.02) 186.68 44.39 7.32 -        51.71 134.97 129.26 6. Drainage, Sewerage & Water Supply 22.35 0.32 -        22.67 9.14 1.10 -        10.24 12.43 13.21 7. Construction Plant & Machinery 24.46 0.01 -        24.47 14.70 1.40 -        16.10 8.37 9.76 8. Generation Plant & Machinery 3,177.93 240.73 (0.02) 3,418.64 1,501.82 106.01 -        1,607.83 1,810.81 1,676.11 9. EDP Machines 18.17 1.41 (0.38) 19.20 11.31 2.47 (0.32) 13.46 5.74 6.86 10. Electrical Installations 45.77 0.78 -        46.55 10.42 1.13 -        11.55 35.00 35.35 11. Transmission Lines 26.66 5.55 -        32.21 16.12 1.32 -        17.44 14.77 10.54 12. Office & Other Equipment 61.17 8.75 (0.06) 69.86 46.98 5.37 (0.05) 52.30 17.56 14.19 13. Furniture & Fixtures 29.07 5.02 (0.04) 34.05 16.61 2.76 -        19.37 14.68 12.46 14. Vehicles 22.53 0.79 -        23.32 10.77 1.72 -        12.49 10.83 11.76 15. Railway Sidings 1.22 -        -        1.22 0.52 0.07 -        0.59 0.63 0.70 16. Hydraulic Works-Dam & Spillways 5,190.62 -        -        5,190.62 3,063.29 105.3 -        3,168.59 2,022.03 2,127.33 17. Hydraulic Works- Tunnel, Penstock, Canals etc. 1,606.20 -        -        1,606.20 880.16 29.57 -        909.73 696.47 726.04 Sub Total 13,199.32 308.93 (0.52) 13,507.73 6,607.33 338.92 (0.37) 6,945.88 6,561.85 6,591.99 B. Intagible Assets 1. Intangible Assets-Software 4.71 0.39 -        5.10 4.51 0.23 -        4.74 0.36 0.20 Sub Total 4.71 0.39 -        5.10 4.51 0.23 -        4.74 0.36 0.20 Standalone Financial Statements Amount in Crore ` Particulars Gross Block Depreciation Net Block As at 01- Addition Sales / As at 31- As at 01- For The Sales/ As at 31- As at 31- As at Apr-2020 During the Adjustment Mar-2021 Apr-2020 Period 01- Adjustment Mar-2021 Mar-2021 31-Mar- Period During the Apr-2020 To During the 2020 Period 31-Mar-2021 Period Standalone Financial Statements C. Right of Use Assets 1. Right of Use - Land 384.01 49.04 -        433.05 12.45 15.77 -        28.22 404.83 371.56 1. Right of Use - Coal Bearing Land -        -        -        -        -        -        -        -        -        -        2. Right of Use - Building 3.85 0.21 (0.07) 3.99 1.21 1.22 (0.03) 2.40 1.59 2.64 3. Right of Use - Vehicle 7.35 1.51 (0.09) 8.77 0.84 3.94 (0.09) 4.69 4.08 6.51 Sub Total 395.21 50.76 (0.16) 445.81 14.50 20.93 (0.12) 35.31 410.50 380.71 Detail of Depreciation Previous -        Year Depreciation transferred to EDC 23.95 18.89 Depreciation transferred to statement of P&L 317.33 576.1 Depreciation transferred to statement of P&L-Irrigation 18.8 360.08 63.74 658.73 Contribution from GOUP Fixed Assets Costing More Than ` 1500.00 But Less 0.16 0.21 Than ` 5000.00 Procured and Depreciated Fully During The Year 2.1 The Land measuring 14.37 acres transferred free of cost by Govt. of Uttarakhand for construction of Koteshwar Hydro Electric Project (4x100 MW) to the Company has been accounted for at notional value of `1/-. 2.2 The land under submergence has been amortised considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials. 2.3 Details regarding title deeds of the immovable properties not held in the name of the Company are disclosed vide Note No. 43.5 2.4 During the year the Company has not revalued any of it’s Property, Plant & Equipment and Intangible Assets. 2.5 The Comany is not holding any benami property. 2.6 Details regarding unauthorized occupants on the land owned by the Company is disclosed vide Note No. 43.6 169 Standalone Financial Statements Note :-3 CAPITAL WORK IN PROGRESS & INTANGIBLE ASSETS UNDER DEVELOPMENT Amount in Crore ` Particulars For the Period Ended 31-Mar-2022 Note As at Addition During Adjustment Capitalisation As at No. 01-Apr- The Period During the During The 31-Mar-2022 2021 01-Apr-2021 To Period Period 01- 31-Mar-2022 01-Apr-2021 To Apr-2021 To 31-Mar-2022 31-Mar-2022 A. Construction Work In Progress Building & Other Civil Works 135.63 34.31 (2.50) (44.14) 123.30 Roads, Bridges & Culverts 34.96 194.25 (2.90) (3.98) 222.33 Water Supply,Sewerage & Drainage 6.11 20.97 (0.17) (3.90) 23.01 Generation Plant And Machinery 2,429.18 2,036.88 (10.29) (14.25) 4,441.52 Hydraulic Works,Dam,Spillway, Water 3,318.69 520.27 (0.83) (0.12) 3,838.01 Channels,Weirs,Service Gate & Other Hydraulic Works Afforestation Catchment Area 88.00 18.77 -        -        106.77 Electrical Installation & Sub-Station 0.92 77.12 4.66 (0.59) 82.11 Equipments Other expenditure directly attributable to 149.17 85.01 (0.35) 0.00 233.83 project construction Development of Coal Mine 39.36 179.15 0.00 0.00 218.51 Others 2.95 4.57 -        (5.85) 1.67 Expenditure Pending Allocation Survey & Development Expenses 98.22 0.08 (21.08) -        77.22 Expenditure During Construction 32.1 70.66 294.83 365.49 Less: Expenditure During Construction 32.1 362.79 362.79 allocated/ charged to P&L Rehabilitation Rehabilitation Expenses 75.28 32.59 (6.29) (25.17) 76.41 Less: Provision for CWIP 34.83 0.00 (34.83) 0.00 0.00 Total 6,414.30 3,136.01 (4.92) (98.00) 9,447.39 Figures For Previous Period 4,989.80 1,714.59 (5.31) (284.78) 6,414.30 3.1 CWIP mainly constitutes value of ongoing projects under construction such as Tehri PSP, VPHEP & Khurja etc. as the construction work is under process, no impairment arises. 3.2 Ageing of CWIP has been disclosed vide Note No.43.9 (i) 3.3 Completion shedule for projects overdue or cost overruns has been disclosed vide Note No.43.9 (ii) 3.4 Provision against CWIP written off has been disclosed vide Note. No. 43.8 170 Standalone Financial Statements Note :-4 NON CURRENT ASSETS- INVESTMENT IN SUBSIDIARY CO. Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Investment in Subsidiary Co. TUSCO 14.80 7.40    TOTAL 14.80 7.40 Note :-5 NON CURRENT- FINANCIAL ASSETS- LOANS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Loans To Employees Considered Good- Secured 14.82 17.79 Considered Good- Unsecured 8.82 6.99 Interest Accrued On Loans To Employees Considered Good- Secured 21.01 23.04 Considered Good- Un secured 1.63 2.06 Total Loans to Employees 46.28 49.88 Less: Fair valuation Adjustment of secured 8.17 8.90 loans Less: Fair valuation Adjustment of 2.03 36.08 1.80 39.18 unsecured loans Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.03 0.05 Interest Accrued On Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.02 0.02 Total Loans to Directors 0.05 0.07 Less: Fair valuation Adjustment of secured 0.00 0.00 loans Less: Fair valuation Adjustment of unsecured 0.01 0.04 0.01 0.06 loans SUB-TOTAL 36.12 39.24 LESS:- Provision For Bad & Doubtful Advances 0.00 0.00 TOTAL - LOANS 36.12 39.24 171 Standalone Financial Statements Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Note :- Due From Directors Principal 0.03 0.05 Interest 0.02 0.02 TOTAL 0.05 0.07 Less: Fair Valuation Adjustment 0.01 0.04 0.01 0.06 Note :- Due From Officers Principal 0.16 0.01 Interest 0.02 0.01 TOTAL 0.18 0.02 Less: Fair Valuation Adjustment 0.03 0.15 0.00 0.02 5.1 The Company has not granted any loans or advances to promoters, directors, KMP’s and the related parties that are repayble on demand or without specifying any terms or period of repayment. 5.2 The Comapny has not provided any loan to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-6 NON CURRENT- FINANCIAL ASSETS-ADVANCES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Advances Other Advances ( Un Secured) (Advances Recoverable In Cash or In Kind or For Value To Be Received) To Employees 0.00 0.01 To Others 0.00 0.00 0.00 0.01 Deposits Other Deposit 0.00 0.00 0.00 0.00 TOTAL 0.00 0.01 6.1 The Comapny has not provided any advance to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-7 DEFERRED TAX ASSET Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Tax Asset 836.29 871.31 Total 836.29 871.31 172 Standalone Financial Statements Note :-8 NON CURRENT TAX ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    Tax Deposited 43.21 32.49    TOTAL 43.21 32.49 Note :-9 OTHER NON CURRENT ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Employee Cost due to Fair Valuation 10.20 10.70 Sub Total 10.20 10.70 Capital Advances Unsecured i) Against Bank Guarantee (Bank Guarantee of 823.75 858.38 ` 903.75 Crore ) ii) Rehabilitation & Resettlement and payment 455.58 423.88 to various Government agencies iii) Others 654.06 579.26 iv) Accrued Interest On Advances 221.52 2154.91 157.39 2018.91 Less: Provision for Doubtful Advances 122.87 123.39 SUB TOTAL - CAPITAL ADVANCES 2,032.04 1,895.52 TOTAL 2,042.24 1,906.22 Note :-10 INVENTORIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Inventories (At Cost Determined On Weighted Average Basis or Net Realizable Value Whichever is Lower) Other Civil And Building Material 1.62 1.68 Mechanical and Electrical Stores & Spares 33.63 28.92 Others (including Stores & Spares) 3.77 4.44 Material Under Inspection (Valued At Cost) 1.92 40.94 0.17 35.21 Less: Provision For other stores 0.00 0.27 TOTAL 40.94 34.94 173 Standalone Financial Statements Note :-11 TRADE RECEIVABLES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 (i) Debts Outstanding Over Six Months (Net) Unsecured, Considered Good 229.46 448.92 Credit Impaired 0.00 229.46 67.39 516.31 Less:- Provision For Bad And Doubtful Debts 0.00 67.39 (ii) Other Debts (Net) Unsecured, Considered Good 321.69 606.56 Credit Impaired 0.00 321.69 0.00 606.56 (iii) Unbilled Debtors 172.57 106.55 TOTAL 723.72 1,162.03 11.1 Agewise analysis of trade receivables has been disclosed vide Note No. 43.10 Note :-12 CASH AND CASH EQUIVALENTS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Cash & Cash Equivalents Balances With Banks (Including Auto sweep, 87.76 225.07 Deposit with Banks) Cheques,Drafts on hand 0.01 0.01 TOTAL 87.77 225.08 174 Standalone Financial Statements Note :-13 CURRENT- FINANCIAL ASSETS- LOANS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Loans To Employees Considered Good- Secured 6.18 6.54 Considered Good- Unsecured 3.16 2.53 Interest Accrued On Loans To Employees Considered Good- Secured 1.99 1.87 Considered Good- Un secured 0.07 0.08 Total loan to Employees 11.40 11.02 Less: Fair valuation Adjustment of Secured 1.28 1.21 Loans Less: Fair valuation Adjustment of Unsecured 0.47 9.65 0.32 9.49 Loans Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.02 0.02 Interest Accrued On Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.00 0.00 Total loan to Directors 0.02 0.02 Less: Fair valuation Adjustment of Secured 0.00 0.00 Loans Less: Fair valuation Adjustment of Unsecured 0.00 0.02 0.00 0.02 Loans SUB-TOTAL 9.67 9.51 LESS:- Provision For Bad & Doubtful Advances 0.08 0.08 TOTAL LOANS 9.59 9.43 Note :- Due From Directors Principal 0.02 0.02 Interest 0.00 0.00 TOTAL 0.02 0.02 Less: fair Valuation Adjustment 0.00 0.02 0.00 0.02 Note :- Due From Officers Principal 0.04 0.00 Interest 0.00 0.00 TOTAL 0.04 0.00 Less: fair Valuation Adjustment 0.00 0.04 0.00 0.00 13.1 The Company has not granted any loans or advances to promoters, directors, KMP’s and the related parties that are repayble on demand or without specifying any terms or period of repayment. 13.2 The Comapny has not provided any loan to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. 175 Standalone Financial Statements Note :-14 CURRENT- FINANCIAL ASSETS- ADVANCES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Other Advances (Un Secured) (Advances Recoverable In Cash or In Kind or For Value To Be Received) To Employees 6.44 6.42 To Others 2.45 8.89 3.91 10.33 TOTAL 8.89 10.33 14.1 The Comapny has not provided any advance to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-15 CURRENT- FINANCIAL ASSETS- OTHERS Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deposits Security Deposit 15.19 14.65 Deposit with Govt/Court 480.16 480.88 Other Deposit 0.07 495.42 0.02 495.55 Others Unbilled Revenue 353.79 251.02 TOTAL 849.21 746.57 15.1 Unbilled revenue includes balances of beneficiaries against pending tariff petition of ` 353.79 Crore (Recoverable ` 370.27 Crore and Payable ` 16.48 Crore) [Previous Period ` 251.02 Crore (Recoverable `267.50 Crore and Payable ` 16.48 Crore)]. Note :-16 CURRENT TAX ASSETS (NET) Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    Tax Deposited 60.82 60.79    TOTAL 60.82 60.79 176 Standalone Financial Statements Note :-17 OTHER CURRENT ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Prepaid Expenses 31.12 42.44 Interest Accrued 0.03 0.04 BER Assets held for disposal 0.33 0.23 Deferred Employee Cost due to Fair Valuation 1.75 1.53 SUB-TOTAL 33.23 44.24 Other Advances (Un Secured) To Employees 0.52 0.49 For Purchases 3.74 5.66 To Others 19.70 18.37 23.96 24.52 Less: Provision for Misc. Recoveries 14.41 14.41 SUB TOTAL -OTHER ADVANCES 9.55 10.11 TOTAL 42.78 54.35 Note :-18 REGULATORY DEFERRAL ACCOUNT DEBIT BALANCE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Opening Balance 169.72 186.22 Net movement during the period (71.03) (16.50) Closing Balance 98.69 169.72 18.1 Regulatory deferral account debit balance is due to impact of pay arrears due to pay revision w.e.f. 01.01.2017 of ` 42.26 Crore, Exchange Rate Variation of ` 54.91 Crore and others of ` 1.52 Crore 177 Standalone Financial Statements Note :-19 SHARE CAPITAL Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of Amount Number of Amount Shares Shares Authorised Equity Shares of ` 1000/- each 4,00,00,000 4,000.00 4,00,00,000 4,000.00 Issued Subscribed & Paid-up Equity Shares of ` 1000/- each fully paid up 3,66,58,817 3,665.88 3,66,58,817 3,665.88       TOTAL 3,66,58,817 3,665.88 3,66,58,817 3,665.88 During the year, the Company has paid final dividend of ` 190.84 crore for the FY 2020-21 @ ` 52.06 (P.Y. ` 109.85) per equity share of par value ` 1000/- each. The Company has paid Interim Dividend of ` 317.36 crore during the year for the F.Y. 2021-22 and the Board of Directors of the Company has proposed a final dividend of ` 197.94 crore for the F.Y. 2021-22. Thus the total Dividend for the F.Y. 2021-22 comes to ` 515.30 crore @ ` 140.56 (P.Y. @ ` 135.27) per equity share of par value `1000/- each. This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting. Note :-19.1 DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of % Number of % Shares Shares Share holding more than 5% I. NTPC Ltd. (Including Nominee Shares) 2,73,09,412 74.496 2,73,09,412 74.496 II. GOUP (Including Nominee Shares) 93,49,405 25.504 93,49,405 25.504 TOTAL 3,66,58,817 100 3,66,58,817 100 Note :-19.2 RECONCILIATION OF NO. OF SHARES & SHARE CAPITAL OUTSTANDING Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of Amount Number of Amount Shares Shares    Opening 3,66,58,817 3,665.88 3,66,58,817 3,665.88    Issued 0.00 0.00 0.00 0.00    Closing 3,66,58,817 3,665.88 3,66,58,817 3,665.88 19.2A. The Company has only one class of shares having a par value of ` 1000/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meetings of shareholders. 178 Standalone Financial Statements Note :-19.3 Shareholding of Promoters Amount in Crore ` Particulars Note No. As at 31-Mar-2022 Number % Number % % Change of Shares of Shares during the year (Opening) (Closing) I. NTPC Ltd. (Including Nominee Shares) 2,73,09,412 74.496 2,73,09,412 74.496 0 II. GOUP (Including Nominee Shares) 93,49,405 25.504 93,49,405 25.504 0 TOTAL 3,66,58,817 100 3,66,58,817 100 Note :-20 OTHER EQUITY Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Share Application Money Pending Allottment 0.00 0.00 Retained Earnings 6,527.77 6,189.69 Debenture Redemption Reserve 128.00 79.50 Other Comprehensive Income (15.50) (17.64) TOTAL 6,640.27 6,251.55 20.1 In accordance with the applicable provisions of the Companies Act 2013 read with rules and in line with MCA Notification No. G.S.R. 574 (E) dated 18.08.2019, the Company has created Debenture Redemption Reserve out of profits of the Company @ 10% value of bonds on a prudent basis, every year in equal installments till the prior to the year of redemption of bonds for the purpose of redemption of bonds. Note :-21 NON CURRENT- FINANCIAL LIABILITIES- BORROWINGS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 A.BONDS ^ BOND ISSUE SERIES-V- SECURED 7.39% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 1,253.21 0.00 of ` 1000000/- each). (Date of redemption 25.08.2031) ^ BOND ISSUE SERIES-IV- SECURED 7.45% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 760.87 760.87 of ` 1000000/- each). (Date of redemption 20.01.2031) ***BOND ISSUE SERIES-III- SECURED 7.19% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 839.55 839.55 of ` 1000000/- each). (Date of redemption 24.07.2030) **BOND ISSUE SERIES-II- SECURED (8.75% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 1,574.44 1,574.08 of ` 1000000/- each). (Date of redemption 05.09.2029) *BOND ISSUE SERIES-I- SECURED (7.59% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 622.33 622.46 of ` 1000000/- each). (Date of redemption 03.10.2026) TOTAL (A) 5,050.40 3,796.96 179 Standalone Financial Statements Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 B. SECURED Term Loan from Financial Institutions ****POWER FINANCE CORPORATION Ltd. (PFC)-78302003 (For Tehri HPP) (Repayable within 15 years on Quarterly installment from 15th october 2008 138.17 230.27 to 15th July 2023, presently carrying floating interest rate @9.75%) #POWER FINANCE CORPORATION Ltd. (PFC) -78302002 (For KHEP) 0.00 89.53 (Repayable within 10 years on Quarterly installment from 15th January 2012 to 15th october 2021, presently carrying floating interest rate @9.75%) #Rural Electrification Corporation Ltd. (REC) (For KHEP) (UA-GE-PSU-033-2010-3754) (Repayable within 10 years on Quarterly installment from 30th September 17.52 87.62 2012 to 30th June 2022, presently carrying floating interest rate @ 10.10%) ****Rural Electrification Corporation Ltd. (REC)-330001- (For Tehri HPP) (Repayable within 15 years on Quarterly installment from September 2007 to 0.00 95.21 March 2022, presently carrying floating interest rate @ 10.10%) @Punjab National Bank (For PSP) PNB (Repayable within 5 years on Quarterly Installments from 30.06.2019 281.38 422.66 to 31.03.2024 Carrying Floating Interest rate @ 3 month MCLR presently 6.75%) @@Bank of Baroda Bank of Baroda (Repayment shall be first 20 quarterly installment of 1.25%, next 20 quarterly installment of 3.75% Carrying Floating Interest rate @ 800.15 0.00 1 month MCLR presently 6.9%) TOTAL (B) 1,237.22 925.29 C. UNSECURED Foreign currency Loans (Guaranteed by Govt. of India ) $World Bank Loan -8078-IN (For VPHEP) (Repayable within 23 years on half yearly installment from 15th Nov. 2017 1,001.65 985.06 to 15th May 2040, carrying interest rate @LIBOR + variable spread i.e. presently 0.96%) TOTAL (C) 1,001.65 985.06 TOTAL (A+B+C) 7,289.27 5,707.31 Less: Current Maturities: Term Loans from Financial Institutions- Secured 372.80 483.28 Foreign Currency Loans- Unsecured 53.83 50.23 Interest Accrued but not due on borrowings 208.66 159.58 TOTAL 6,653.98 5,014.22 180 Standalone Financial Statements * The Bonds series I are secured by first charge on paripassu basis on movable assets of Tehri HPP Stage-I ** The Bonds Series II are secured by first charge on paripassu basis on movable assets of Tehri HPP Stage-I including book debts. *** The Bonds Series III are secured by first charge on paripassu basis on movable assets of Koteshwar HEP & Wind Power Projects of Patan & Dwarka. ^ The Bonds Series IV & V are secured by first charge on paripassu basis on the movable CWIP and future movable assets of Pumped Storage Plant located at Tehri . **** Long Term Loan Secured by first Charge on Pari Passu basis on Assets of Tehri Stage-I i.e. Dam, Power House Civil Construction, Power House Electrical & Mechanical equipments not covered under other borrowings and Project township of Tehri Dam and HPP together with all rights and interest appertaining there to. # Long Term Loan secured by first charge on Pari Passu basis on assets of Koteshwar HEP. @ Medium Term Loan secured against first charge on Pari Passu basis on assets of Tehri PSP. @@ Term Loan secured by first charge on Pari Passu basis on movable fixed assets (including plant & machinery and CWIP) both existing and future with respect to Kasargod solar power plant, Khurja STTP and Amelia Coal mine. $ With negative lien on the equipments financed under the respective loan ranking pari-passu. 21.1 There has been no default in repayment of any of the Loans or interest thereon during the period. 21.2 The Company has no cases of any charges or satisfaction yet to be registered with ROC beyond the Statutory time limits. 21.3 The Comapny has not been declared wilful defaulter by any bank or financial institution or other lender. 21.4 The Comapny has not taken any loan or advance from any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-22 NON CURRENT- FINANCIAL LIABILITIES- LEASE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 LEASE LIABILITIES Unsecured 34.16 13.25 Less: Current Maturities of Lease Liabilities- 4.17 4.06 Unsecured TOTAL 29.99 9.19 Note :-23 NON CURRENT FINANCIAL LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities Deposits, Retention Money From Contractor 206.52 31.26 etc. Less: Fair Value Adjustment- Security Deposit/ 44.12 162.40 3.15 28.11 Retention Money TOTAL 162.40 28.11 181 Standalone Financial Statements Note :-24 OTHER NON CURRENT LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Revenue On Account of Advance 189.92 197.51 Against Depreciation Contribution Received From Government of 582.19 595.87 Uttar Pradesh Towards Irrigation Sector Grant from MNRE Opening Balance 0.00 0.00 Deferred Fair Valuation Gain- Security Deposit/ 44.12 3.15 Retention Money TOTAL 816.23 796.53 Note :-25 NON CURRENT PROVISIONS Amount in Crore ` Particulars As at 31-Mar-2022 As at 31-Mar-2022 Note No. As at 01-Apr-2021 Addition Adjustment Utilisation I. Employee Related 183.71 3.46 (6.51) (6.75) 173.91 II. Others 6.66 0.13 (4.24) 0.00 2.55 TOTAL 190.37 3.59 (10.75) (6.75) 176.46 Figure for Previous 190.85 5.47 (1.05) (4.90) 190.37 Period 25.1 Disclosure required by Ind AS-19 on employee benefit has been made in Note No . 43.24 25.2 Provision for others mainly includes provision for rehabilitation expenses. 182 Standalone Financial Statements Note :-26 CURRENT- FINANCIAL LIABILITIES- BORROWINGS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Short term Loan From Banks and Financial Institutions A. Secured loans: *State Bank of India (Carrying floating Interest 0.00 250.00 Rate linked with 90 days T Bill rate, presently @ 4.5%) Over Draft (OD)/ Cash Credit Facility From Banks **Punjab National Bank (Carrying Floating Interest Rate @ 3 month MCLR presently 6.75% 650.33 0.00 for overdraft & for WCDL at intrest rate 4.35% linked with TBLR) ***HDFC Bank (Carrying Floating Interest Rate @ 3 month Repo Rate + variable 195.92 0.00 spread presently 6% for CC limit & 4.35% for WCDL) ****Bank of Baroda (Carrying Floating Interest 0.10 0.00 Rate at overnight MCLR presently 6.5%) *State Bank of India (Carrying Floating Interest Rate@3 month MCLR+variable spread 79.75 0.00 presently 6.80% for CC limit & for WCDL 4.35%) TOTAL (A) 926.10 250.00 B.Unsecured loans: Axis Bank Ltd. (Carrying Floating Interest Rate linked with Repo Rate +1%, presently 5%) 0.00 100.00 HDFC Bank Ltd. (Carrying Floating Interest Rate linked with Repo Rate plus spread, presently 4.45%) 0.00 350.00 TOTAL (B) 0.00 450.00 C. Current Maturities of Long Term Debt SECURED ^ 372.80 483.28 UNSECURED ^ 53.83 50.23    TOTAL (C) 426.63 533.51    TOTAL (A+B+C) 1,352.73 1,233.51 * Secured by way of Trade Receivables of Koteshwar HEP. The balance is inclusive of WCDL. ** Secured by way of 2nd Charge on Assets of Tehri Stage-1 and immovable properties/ other assets of Koteshwar HEP including movable machinery and machinery spares, tools & accsesories, fuel stock, spares & material at project site. The balance is inclusive of WCDL ***Secured by way of exclusive charge on debtors of Comapny Plant- Patan Wind Power Project, Dev Bhoomi Dwarka wind Power Project, Dhukuwan Project and Solar Power Plant Kerla. The balance is inclusive of WCDL. ****Secured by extension of charge on term loan from Bank of Baroda and the security of term loan is stated in Note No. 21 under @@. ^ Detail in respect of Rate of Interest and Terms of repayment of Current Maturity of Secured and unsecured Long Term Debt indicated above are disclosed in Note-21. 26.1 There has been no default in repayment of any of the Loans or interest thereon during the period. 26.2 The Company has no cases of any charges or satisfaction yet to be registered with ROC beyond the Statutory time limits. 26.3 The Comapny has not been declared wilful defaulter by any bank or financial institution or other lender. 26.4 The Comapny has not taken any loan or advance from any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. 26.5 Additional disclosure of borrowings on security of current assets disclosed vide Note No. 43.14 183 Standalone Financial Statements Note :-27 CURRENT- FINANCIAL LIABILITIES- LEASE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Current Maturities of Finance Lease Obligations Unsecured 4.17 4.06 TOTAL 4.17 4.06 Note :-28 CURRENT- FINANCIAL LIABILITIES- OTHERS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities For Expenditure For Micro And Small Enterprises. 2.03 0.02 For Others 131.5 133.53 142.71 142.73 Deposits, Retention Money From Contractors 273.59 160.27 etc. Less: Fair Value Adjustment- Security Deposit/ 0.00 273.59 0.00 160.27 Retention Money Deferred Fair Valuation Gain- Security Deposit/ 0.00 0.00 Retention Money Interest Accrued But Not Due Bondholders and Financial Institutions 209.32 160.62 Other Liabilities 0.00 209.32 0.00 160.62 TOTAL 616.44 463.62 Note :-29 OTHER CURRENT LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities Deferred revenue on Account of Advance 7.60 7.60 Against Depreciation Other Liabilities 63.75 116.55 Contribution Towards Irrigation Component Contribution Received From Government of 858.99 845.31 Uttar Pradesh Towards Irrigation Sector LESS:- Adjustment Towards Depreciation 842.75 16.24 826.51 18.80 TOTAL 87.59 142.95 184 Standalone Financial Statements Note :-30 CURRENT PROVISIONS Amount in Crore ` (Figures In Parenthesis Represent Deduction) Particulars For the Period Ended 31 Mar-2022 As at 31-Mar-2022 Note No. As at Addition Adjustment Utilisation 01-Apr-2021 I. Works 19.51 25.68 (3.36) (17.3) 24.53 II. Employee Related 302.15 156.55 (6.61) (140.33) 311.76 III. Others 19.97 2.52 (7.77) (2.39) 12.33 TOTAL 341.63 184.75 (17.74) (160.02) 348.62 Figure for Previous Period 279.47 159.56 (7.12) (90.28) 341.63 30.1 Disclosure required by Ind AS-19 on employee benefit has been made in Note No. 43.24 30.2 Provision for others mainly includes provision for rehabilitation expenses and works. Note :-31 CURRENT TAX LIABILITIES (NET) Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 INCOME TAX Opening Balance 0.00 0.00 Addition during the period 207.42 243.05 Adjustment during the period (7.16) 0.00 Utilised during the period (200.26) (243.05) Closing Balance 0.00 0.00 Note :-32 REGULATORY DEFERRAL ACCOUNT CREDIT BALANCE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Opening Balance 550.22 618.63 Net movement during the period (35.02) (68.40) Closing Balance 515.20 550.23 32.A. Regulatory deferral account credit balance is due to deferred tax adjustment recoverable from beneficiaries. 185 Standalone Financial Statements Note :-32.1 EXPENDITURE DURING CONSTRUCTION Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 EXPENDITURE EMPLOYEE BENEFITS EXPENSES 35 Salaries, Wages, Allowances & Benefits 168.66 140.77 Contribution to Provident & Other Funds 11.80 9.66 Pension Fund 13.11 8.42 Gratuity 6.46 4.15 Welfare 5.35 3.39 Amortisation Expenses of Deferred 0.03 205.41 0.67 167.06 Employee Cost OTHER EXPENSES 36 Rent Rent for office 0.26 0.13 Rent for Employee Residence 0.83 1.09 0.89 1.02 Rate and taxes 0.01 0.00 Power & Fuel 10.15 7.77 Insurance 0.15 0.11 Communication 1.57 0.71 Repair & Maintenance Plant & Machinery 0.00 0.04 Consumption of Stores & Spare Parts 0.00 0.00 Buildings 0.75 1.06 Others 3.58 4.33 2.58 3.68 Travelling & Conveyance 1.34 0.56 Vehicle Hire & Running 6.37 4.73 Security 9.20 11.5 Publicity & Public relation 0.49 0.70 Other General Expenses 17.45 8.82 Loss on sale of assets 0.01 0.01 Survey And Investigation Expenses 12.84 7.70 Expenses on Consultancy Project/ Contract 0.11 14.68 Interest others 3.08 3.12 Provisions For Bad And Doubtful Debts, 0.29 0.00 Loans & Advances Provisions For Stores & Spares 0.00 0.29 0.00 0.00 DEPRECIATION 2 28.86 23.95 TOTAL EXPENDITURE (A) 302.75 256.12 RECEIPTS OTHER INCOME 34 Interest 186 Standalone Financial Statements Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 From Bank Deposit 0.00 0.04 From Employees 0.74 0.62 Employee Loans & Advances- 0.03 0.67 Adjustment on Account of Effective Interest From Others 0.20 0.97 0.15 1.48 Machine Hire Charges 0.06 0.06 Rent Receipts 0.95 0.97 Sundry Receipts 3.83 3.48 Excess Provision Written Back 0.35 0.00 Fair Value Gain- Security Deposit/ 1.55 2.84 Retention Money TOTAL RECEIPTS (B) 7.71 8.83 NET EXPENDITURE BEFORE TAXATION 295.04 247.29 PROVISION FOR TAXATION 39 NET EXPENDITURE INCLUDING TAXATION 295.04 247.29 Acturial Gain/(Loss) through OCI 41 0.21 0.05 Balance Brought Forward From Last Year 70.66 41.99 TOTAL EDC 365.49 289.23 Less:- EDC Allocated To CWIP / Asset 362.79 218.57 EDC of Projects Under Approval Charged 0.00 362.79 0.00 218.57 To Profit & Loss Account Balance Carried Forward To CWIP 2.70 70.66 Note :-33 REVENUE FROM CONTINUING OPERATIONS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar- 31-Mar-2022 2021 Income from Beneficiaries against Sale of 1,880.62 1,770.33 Power Add: Advance Against Depreciation 7.60 7.60 Less : Rebate to Customers 6.31 1,881.91 3.61 1,774.32 Deviation Settlement/ Congestion Charges 25.35 21.35 Consultancy Income 14.23 0.34 TOTAL 1,921.49 1,796.01 187 Standalone Financial Statements 33.1 The Company has filed tariff petitions before the Hon’ble CERC for Tehri HEP & Koteshwar HEP for determination of Tariff for the period 2019-24. Pending tariff determination for 2019-24, sales revenue for current financial year has been provisionally recognized based on Audited & Certified AFCs of FY 2021-22 worked out as per the principles enunciated in CERC Tariff Regulations, 2019 applicable for the period 2019-24. 33.2 Due to completion of 12 years of commercial operation of Tehri Satge 1 project, AAD allowed and considered as deferred income earlier, has now been recognised as income in proportion to balance useful life of the project i.e. 28 years. 33.3 Hon’ble CERC has issued order dtd. 23.10.2021 for recovery of impact of wage revision of employees, Impact of GST, Minimum Wages and Security expenses (CISF) in Tehri HPP (1000MW) during the period from 01.01.2016 to 31.03.2019 amounting to ` 90.19 Crore to be recovered in 12 monthly installment from the beneficiaries. Against the aforesaid amount, Regulatory Deferral Account of ` 83.72 Crore was created which has now been adjusted. Note :-34 OTHER INCOME Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Interest On Bank Deposits (Includes TDS ` 255756.00 0.34 0.24 Previous period 101865.00 ) From Employees 1.94 2.05 Employee Loans & Advances- Adjustment on 2.06 4.93 Account of Effective Interest Others 0.23 4.57 0.38 7.60 Machine Hire Charges 0.06 0.06 Rent Receipts 1.97 1.73 Sundry Receipts 6.18 7.18 Excess Provision Written Back 73.88 34.38 Profit on Sale of Assets 0.03 0.01 Late Payment Surcharge 225.46 660.94 Fair Value Gain- Security Deposit/ Retention 1.74 3.05 Money TOTAL 313.89 714.95 Less : Non Tariff income shared with beneficiaries 0.33 0.2 Transferred To EDC 32.1 7.71 8.83 TOTAL 305.85 705.92 188 Standalone Financial Statements Note :-35 EMPLOYEE BENEFITS EXPENSES Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Salaries, Wages, Allowances & Benefits 432.41 468.26 Contribution to Provident & Other Funds 29.24 29.10 Pension Fund 38.68 23.18 Gratuity 16.65 17.86 Welfare Expense 40.48 12.51 Amortisation Expenses of Deferred Employee 2.06 4.93 Cost TOTAL 559.52 555.84 Less : Transferred To EDC 32.1 205.41 167.06 TOTAL 354.11 388.78 Note :-36 FINANCE COSTS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Finance Costs Interest On Bonds 343.75 226.7 Interest On Domestic Loans 100.25 146.24 Interest On Foreign Loans 9.25 13.57 Interest On Cash Credit 13.5 36.02 FERV 18.47 (24.92) Payment as per Income Tax Act 0.00 2.67 Interest Others 4.62 4.58 TOTAL 489.84 404.86 LESS:- Transferred And Capitalised With CWIP Account 352.65 219.81 Interest others transferred to EDC 3.08 3.12 TOTAL 134.11 181.93 189 Standalone Financial Statements Note :-37 GENERATION ADMINISTRATION AND OTHER EXPENSES Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021    Rent         Rent for office 0.35 0.28         Rent for Employees Residence 1.59 1.94 2.16 2.44    Rate and taxes 2.35 3.00    Power & Fuel 21.39 16.94    Insurance 31.07 29.11    Communication 6.05 3.83    Repair & Maintenance         Plant & Machinery 55.16 43.98        Consumption of Stores & Spare Parts 5.95 4.07         Buildings 22.57 18.41         Others 25.16 108.84 20.74 87.20    Travelling & Conveyance 3.50 1.89    Vehicle Hire & Running 10.84 7.91    Security 62.61 54.82    Publicity & Public relation 1.52 1.66    Other General Expenses 49.84 33.15    Payment to Auditors 0.30 0.26    Loss on sale of assets 0.36 0.26    Survey And Investigation Expenses 12.84 7.70    Research & Development 3.46 4.52    Expenses on Consultancy Project/ Contract 8.06 14.62    Expenditure On CSR & S.D. Activities 27.20 23.01    TOTAL 352.17 292.32    LESS:-        Transferred To EDC 32.1 65.11 61.99    TOTAL 287.06 230.33 37.1 Detailed information with respect to CSR has been disclosed vide Note No. 43.20 (i) 190 Standalone Financial Statements Note :-38 PROVISIONS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Provisions For Doubtful Debts, CWIP and Loans 0.29 0.00 & Advances Provisions For Stores & Spares 0.00 0.25 TOTAL 0.29 0.25 LESS:- Transferred To EDC 32.1 0.29 0.00 TOTAL 0.00 0.25 38.1 Provision of stores is mainly due to obsolescence. Note :-39 PROVISION FOR TAXATION Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 INCOME TAX Current Year 189.34 229.6 Sub Total 189.34 229.6 TOTAL 189.34 229.6 Note :-40 NET MOVEMENT IN REGULATORY DEFERRAL ACCOUNT BALANCE Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Net Movement in Regulatory Deferral Account (36.01) 51.90 Balances Tax on Net Movement in Regulatory Deferral 6.29 (9.07) Account Balances TOTAL (29.72) 42.83 Note :-41 RE- MEASUREMENTS OF THE DEFINED BENEFIT PLANS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Acturial Gain/ (Loss) through OCI 1.80 0.28 Sub Total 1.80 0.28 LESS:- Transferred To EDC 32.1 0.21 0.05 TOTAL 1.59 0.23 191 Standalone Financial Statements 42.1 Disclosures on Financial Instruments and Risk Management: Management of those Risks (mitigation)- Ind AS 107 is applicable on Financial instruments. The 1. The Company extends credit to customers in normal course of definition of Financial instruments is inclusive and cover business. The Company monitors the payment track record of financial assets and financial liabilities. Explained below are the the customers. Outstanding customer receivables are regularly nature and extent of risks arising from financial instruments to monitored and any expected losses are provided for as well. which THDCIL is exposed during the period and at the end of 2. The Company has used ECL (expected credit loss) model while the reporting period, and also how THDCIL is managing these provision of any bad debt cases or expected provisions. risks. 3. The Company evaluates the concentration of risk with respect i) Credit risk to trade receivables as low, as its customers are mainly state Credit risk is the risk that a counter party will not meet its owned PSU DISCOM’s. obligations under a financial instrument or customer contract, 4. CERC tariff regulations 2019-24 allows the Company to leading to a financial loss. The company is exposed to credit raise bills on beneficiaries for late-payment surcharge, which risk from its operating activities (primarily trade receivables) adequately compensates the Company for time value of money and from its financing activities including loans etc given to arising due to delay in payment. employees. 5. Further, the fact that beneficiaries are primarily State ii) Liquidity risk Governments/ State DISCOM’s and considering the historical Liquidity risk is the risk that the Company may not be able credit loss experience for trade receivables, the Company does to meet its present and future cash and collateral obligations not envisage either impairment in the value of receivables from without incurring unacceptable losses. beneficiaries or loss due to time value of money due to delay in realization of trade receivables. iii) Market risk 6. The Company assesses outstanding trade receivables on an Market risk is the risk that the fair value or future cash flows of a ongoing basis considering changes in operating results and financial instrument will fluctuate because of changes in market payment behavior and provides for expected credit loss on prices. Market prices comprise three types of risk: case-to-case basis. 1. Currency rate risk, 7. As at the reporting date, company does not envisage any 2. Interest rate risk and default risk on account of non-realization of trade receivables due to holding of Letters of Credit & TPA. 3. Other price risks, such as equity price risk and commodity risk. 42.2 Impairment of financial assets: Financial instruments affected by market risk include loans and In accordance with Ind AS-109,the Company has applied borrowings, deposits and investments. Expected Credit Loss (ECL) model in the FY 2021-22 (previously it was carried out in the FY 2018-19) for measurement and Foreign currency risk is the risk that the fair value or future recognition of impairment loss on the following financial assets: cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. a) Financial assets that are debt instruments and are measured at amortized cost. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes b) Financial assets that are debt instruments and are measured as in market interest rates. at FVTOCI. Financial environment :- The company operates in a regulated c) Trade Receivables under Ind AS 115, Revenue Recognition. environment. Tariff of the company is fixed by the Central d) Lease Receivable under Ind AS 116, Leases. Electricity Regulatory Commission (CERC) through Annual Fixed Charges (AFC) comprising the following five components: The ECL model allows either of the 2 approaches- General approach or the Simplified approach. The company has 1. Return on Equity (RoE), followed “simplified approach” for the above cases. This 2. Depreciation, required the expected life time losses to be recognized from initial recognition of the receivables. 3. Interest on Loans, For recognition of impairment loss on other financial assets, the 4. Operation & Maintenance Expenses and company assess whether there has been a significant increase 5. Interest on Working Capital Loans. in the credit risk since initial recognition. If credit risk is not increased significantly, Lifetime ECL is used. For assessing In addition to the above, Foreign Currency Exchange variations increase in credit risk and impairment loss, the Company and Taxes are also recoverable from Beneficiaries in terms of assesses the credit risk characteristics on item by item basis. the Tariff Regulations. Hence variation in interest rate, currency If, in a subsequent period, credit quality of the instrument/item exchange rate variations and other price risk variations are improves such that there is no longer a significant increase recoverable from tariff and do not impact the profitability of the in credit risk since initial recognition, then the entity reverts company. to recognizing the impairment loss allowance based on the 192 Standalone Financial Statements 12-month ECL. Based on such assessment further ECL as the “value in use” of both the projects exceeds the “carrying provision is not required amount” of fixed assets. 42.3 Impairment of assets: 43. Other explanatory notes on accounts: As required by Ind AS 36, an asessement of impairment of 1. Estimated amount of contracts remaining to be executed on assets was carried out for the projects Tehri Stage-1 (1000 capital account including R & R and environment demands, not MW) & Koteshwar (400 MW) having CODs of Projects provided for (net of advances) is ` 5720.92 Cr. (PY ` 6297.31 09.07.2007 and 01.04.2012 resepectively during FY 2020-21. Cr.). Based on such assessement, there is no impairment of assets 2. Contingent Liabilities – Amount in Crore ` Particulars As at 31.03.2022 31.03.2021 A. Capital Works 1010.57 860.93 B Land Compensation cases 67.99 65.03 C State/Central Govt. deptt/Authorities 1235.32 1106.88 D Others 2823.21 2789.17 E Possible reimbursement in respect of A to D of above. NIL NIL F Disputed Tax Matters 1.72 8.90 G Total 5138.81 4830.91 H Amount deposited by the Company in different Arbitration / Court cases / Income Tax/ Trade 460.06 460.77 Tax against the above 3. Company has been receiving FDRs/ CDRs with right to present of MoEF, Govt of India with directives to the Principal Secretary before bank / financial institutions for claiming face value only of Forest, Govt. of Uttarakhand for declaring the non forest land against EMD/ SD. The company has FDRs/ CDRs amounting cleared for submergence as Reserve Forest / Protected Forest to ` 1.17 Cr. and ` 3.53 Cr. (PY ` 1.72 Cr. and ` 3.63 Cr.) U/s.4 or Sec 29 of the Indian Forest Act, 1927 or the State towards EMD and security deposit respectively besides this Forest Act. In view of the above facts the aforesaid land cannot deposits money from contractors amounting to ` 480.11 Cr. be mutated in the name of the company. The said land remains (PY ` 191.53 Cr.) as disclosed in Note 23 & Note 28 The same the property of the State Govt. as Reserved Forest/ Protected have been fair valued on the basis of effective interest rate and Forest. Relying upon clearance of the MoEF, dam reservoir the same are accounted as well. water has been allowed to submerge the said area which has been declared as Reserved Forest. 4. The amount of borrowing cost capitalized and transferred to EDC pending for allocation during the year ` 352.65 Cr. & ` Besides above 44.429 ha of Civil Soyam land subject to Forest 3.08 Cr. respectively as per note 36 (PY ` 219.81 Cr. & ` 3.12 Conservation Act on which stores, workshop, staff quarters Cr.) after adjustment of an amount of ` 0.40 Cr. (PY ` 0.16 and other utilities etc were constructed by the Irrigation Dept. Cr.) towards interest earned on short term deposit of surplus of the then UP Govt as basic requirement forming integral borrowed funds during the year. Further as per the provisions part of the Tehri Hydro Project. Relying upon office order vide of Ind AS 21, Deferral Account Balances- Debit balance have No. 585/Tehri Dam Project/23-C-4/T-18 dated 29.05.1989 been recognised ` 12.70 Cr. (PY Credit - `.16.50 Cr.). issued by the Irrigation Dept of the then UP Govt. (issued for transferring assets of Irrigation Dept in favour of THDC India (i) Construction of Tehri Hydro Complex was commenced by 5. Ltd) the company has taken possession of the said assets. the Irrigation Dept. of the then Uttar Pradesh State Govt in mid seventies. As the project area is inclusive of forest area, (ii) Initially land was acquired by the then UP Irrigation Dept. and clearance for diversion of forest land for non forest use was land records were in the name of Tehri Dam. Oustees handed sought from the MoEF, Govt. of India. The MoEF, GoI has over the land to the then UP Irrigation Department as mutation conveyed clearance for diversion of 2582.9 ha of forest was not completed. Subsequent to formation of Tehri Hydro land (2311.4 ha Civil Soyam Land and 271.50 ha reserve Development Corporation of India Ltd, land was acquired in the forest land) vide their letter No. 8-32/06-FC dated 09th June name of the company. Consequent upon change in the name of 1987 addressed to Secretary Forest, Govt of Uttar Pradesh the company as THDC India Ltd, process of converting few of for construction of Tehri Dam. The said order was partially the land records in the present name of the company is under modified vide letter No. 8-32/86-FC, dated 24/25th June 2004 process. 193 Standalone Financial Statements Details of title deeds of immovable properties not held in the name of the Company are as under: As on 31.03.2022 Relevant Description Area (Hac.) Gross Title deeds Whether title Property Reason for not being held in line item in of item of carrying held in the deed holder held since the name of the company the Balance property value name of is a promoter, date Sheet (` in director or Cr.) relative of 1 2 3 4 5 6 7 8 Property, Plant Land 53.5 Private land No Acquired Transfer of title deed in the & Equipment Freehold in the name in between name of corporation is still of different 1976 to under process villagers 2006 Property, Plant Land 0.48 0.78 Government No Inception Non-transferable & Equipment Freehold / Forest from the Dept formation of the company Property, Plant Land 2.068 1.21 Private land No Acquired Out of total land of 5.974 & Equipment Freehold in the name in the year hac., title deeds of 3.974 of different 2012 hac. has already been villagers transferred and for balance land of 2.068 hac is under process. Property, Plant Land 7.28 0.50 Govt.Land No 31.10.2006 This land is not in the & Equipment Freehold name of THDCIL, it was handed over to THDCIL on adhoc basis by Director Rehabilitation on 31.10.2006. Property, Plant Land 34.648 0 .01 Government No Jul 1988 Transfer from UP Irrigation & Equipment Freehold / Forest Dept as asset transfer Dept Property, Plant Land under 411.78 38.63 Private land No Acquired Transfer of title deed in the & Equipment submergence in the name in between name of corporation is still of different 1976 to under process villagers 2006 Property, Plant RoU Assets 44.429 (*) Government No Acquired in Lease deed is yet to be & Equipment / Forest 1989 signed Dept Property, Plant RoU Assets 485.96 309.49 GoUP/ No 14.12.2013 Under process & Equipment UPSIDC Property, Plant RoU Assets 178.13 48.85 Govt.Land No 13.09.2021 Non-transferable CBA Land & Equipment Property, Plant RoU Assets 14.28 1.99 Govt.Land No 20.12.2021 Non-transferable & Equipment Property, Plant RoU Assets 11.54 9.77 Pvt. No 20.12.2021 Non-transferable & Equipment (*) Provision for ` 49.03 Cr. made in the FY 2020-21 reversed. 194 Standalone Financial Statements As on 31.03.2021 Relevant Description Area Gross Title deeds Whether title Property held Reason for not being line item in of item of (Hac.) carrying held in the deed holder since date held in the name of the the Balance property value name of is a promoter, company Sheet (` in Cr.) director or relative of 1 2 3 4 5 6 7 8 Property, Plant Land 53.5 Private land No Acquired in Transfer of title deed in the & Equipment Freehold in the name between 1976 name of corporation is of different to 2006 still under process 0.78 villagers Property, Plant Land 0.48 Government / No Acquired in Non-transferable & Equipment Freehold Forest Dept between 1976 to 2006 Property, Plant Land 2.068 1.21 Private land No Acquired in the Out of total land of 5.974 & Equipment Freehold in the name year 2012 hac., title deeds of of different 3.974 hac. has already villagers been transferred and for balance land of 2.068 hac is under process. Property, Plant Land 7.28 0.50 Govt.Land No 31.10.2006 This land is not in the & Equipment Freehold name of THDCIL, it was handed over to THDCIL on adhoc basis by Director Rehabilitation on 31.10.2006. Property, Plant Land 34.648 0 .01 Government / No Jul 1988 Transfer from UP Irrigation & Equipment Freehold Forest Dept Dept as asset transfer Property, Plant Land under 411.78 38.63 Private land No Acquired in Transfer of title deed in the & Equipment submergence in the name between 1976 name of corporation is of different to 2006 still under process villagers Property, Plant RoU Assets 44.429 49.038 Government / No Acquired in Lease deed is yet to be & Equipment Forest Dept 1989 signed Property, Plant RoU Assets 485.96 309.49 GoUP/UPSIDC No 14.12.2013 Under process & Equipment 18 Flats (PY 21 Flats,) net valued ` 0.04 Cr. (PY `. 0.05 Cr.) on 6. debt servicing has been made as per original loan agreement. the land acquired by the company are in unauthorized occupation (ii) Due to slow progress of Tehri PSP project owing the various factors of various persons. Freehold land includes 0.458 Hectares beyond control of company i.e. adverse geological conditions, costing ` 0.001 Cr. located at Sautiyal village encroached by delay in permission for mining of aggregate from Asena Quarry, unauthorized occupants. obstruction in dumping of muck, financial crisis of civil work 7. (i) Due to slow progress of VPHEP project owing the various factors contractor M/s HCC the work progress could not achieved at beyond control of company i.e. adverse geological conditions, required level. Considering the acute financial crises of contractor. stoppage of work by local and financial crisis of civil work THDC’s Board has approved arrangement for financial regulation contractor M/s HCC the work progress could not achieved at of gap funding to M/s HCC for expeditious completion of PSP required level. Considering the acute financial crisis of contractor project. THDC’s Board has approved arrangement for financial regulation 65 MW Maleri Jhelam and 108 MW Jhelam Tamak Hydro Electric 8. of gap funding to M/s HCC for expeditious completion of VPHEP Projects in Chamoli District of Uttarakhand were being affected by project. the Hon’ble Supreme Court order dated 13th August 2013 directing A loan of US$ 157.755 million has been drawn as on 31st March MoEF and State of Uttarakhand not to grant any Environment or 2022 from the World Bank as against original loan sanction Forest Clearance for any new hydro electric project of Uttarakhand amount to US$ 648 million. Due to change in dollar conversion until further orders. Considering the fact as above and uncertainty rate, an amount of US$ 200 million has been cancelled by World involved with respect to execution of the projects, a provision of Bank on the request of the company. Therefore amount availabe ` 12.51 Cr. and ` 22.32 Cr. in respect of expenditure incurred on for disbursement is US$ 448 million. The disbursement schedule Maleri Jhelam and Jhelam Tamak projects was made during the has been extended by World Bank upto June 2022. However the FY 2018-19 and the same has been written off in the current year. 195 Standalone Financial Statements 9. (i) Ageing Schedules of CWIP as at 31.03.2022 & 31.03.2021 are as under : Project Amount in CWIP for a period of Total (` in Cr.) Less than 1 year 1-2 years 2-3 years More than 3 years As at 31.03.2022 Project in progress 3,161.54 1,427.06 965.95 3,892.83 9,447.39 Project temporarily suspended As at 31.03.2021 Project in progress 1,505.55 983.91 519.72 3,405.13 6,414.30 Project temporarily suspended (ii) The Completion schedules for the projects which have exceeded their original cost & completion schedule as on 31.03.2022 & 31.03.2021 are as under: Project To be completed in Total (` in Cr.) Less than 1 year 1-2 years 2-3 years More than 3 years As at 31.03.2022 PSP (1000 MW) 569.61 153.20 - - 722.81 VPHEP (444 MW) 500.00 500.00 406.00 - 1406.00 As at 31.03.2021 PSP (1000 MW) 546.22 210.00 112.24 - 868.46 VPHEP (444 MW) 413.30 430.00 425.00 371.77 1640.07 10. Trade Receivables ageing schedule as at 31.03.2022 & 31.03.2021 As on 31.03.2022 Particulars Total Unbilled Billed but Not Due Billed and Due (E) Total (A) Outstanding (C) (upto 45 days) (F)= (C+ D+E) (B) (D) Less 6 1-2 2-3 More than 6 months years years than 3 months -1 year years (i) Undisputed Trade receivables – 669.69 172.57 130.76 143.54 57.59 140.97 4.29 19.98 669.69 considered good (ii)Undisputed Trade Receivables – which have significant increase in credit risk (iii) Undisputed Trade Receivables – credit impaired (iv) Disputed Trade 54.03 - - 54.03 - - - - 54.03 Receivables– considered good (v) Disputed Trade Receivables – which have significant increase in credit risk (vi) Disputed Trade Receivables – credit impaired Total 723.72 172.57 130.76 197.57 57.59 140.97 4.29 19.98 723.72 196 Standalone Financial Statements As on 31.03.2021 (` in Cr.) Particulars Total Unbilled Billed but Not Due Billed and Due (E) Total (A) Outstanding (C) (upto 45 days) (F)= (C+ D+E) (B) (D) Less than 6 months 1-2 2-3 More 6 months -1 year years years than 3 years (i) Undisputed 1,162.03 106.56 168.16 538.07 193.77 131.66 18.76 5.05 1,162.03 Trade receivables – considered good (ii)Undisputed Trade Receivables – which have significant increase in credit risk (iii) Undisputed Trade Receivables – credit impaired (iv) Disputed Trade Receivables– considered good (v) Disputed Trade Receivables – which have significant increase in credit risk (vi) Disputed Trade Receivables – credit impaired Total 1,162.04 106.56 168.16 538.07 193.77 131.66 18.76 5.05 1,162.03 11. Trade Payables ageing schedule as at 31.03.2022 & 31.03.2021 As on 31.03.2022 Particulars Outstanding for following periods from due date (date of transaction) of payment Total Less than 1 year 1-2 years 2-3 years More than 3 years (i) MSME 0.60 0.00 0.00 0.00 0.60 (ii) Others 25.19 1.42 0.60 0.12 27.34 (iii) Disputed dues – MSME (iv) Disputed dues - Others As on 31.03.2021 Particulars Outstanding for following periods from due date (date of transaction) of payment Total Less than 1 year 1-2 years 2-3 years More than 3 years (i) MSME 0.42 0.00 0.00 0.00 0.60 (ii) Others 22.90 1.24 0.11 0.40 24.65 (iii) Disputed dues – MSME (iv) Disputed dues - Others 197 Standalone Financial Statements 12. Detail of transactions with the struck-off companies : Name of Struck off company (PAN) Nature of transactions Balance outstanding Relationship with Struck off with Struck off company ` in Cr. company, if any, to be disclosed 31-03-2022 31-03-2021 IMPERIA TECHSOLUTIONS PRIVATE LIMITED Payables 0.01 Trade Payable (AAECI0751K) - ANANTSHRI INDUSTRIAL SECURITY (OPC) Payables 0.04 - Trade Payable PRIVATE LIMITED (AAPCA3824J) 13. Being a Government Company as per the provison of Sec.2(45) of the Companies Act, 2013, the provisons of clause (87) of Section 2 of the Act read with the Companies (Restrictions on number of Layers) Rules 2017 are not applicable. 14. Additional disclosures w.r.t. borrowings on security of current assets : (` in Cr.) Name Amount of FY 2021-22 Particulars of Securities provided Reason for Material discrepancies of Bank Difference Amount as Amount reported as per Description of Securities in the books of quarterly / accounts statement Difference is on account of Deviation Trade Receivables of Koteshwar Jun-21 SBI 329.92 0.33 and Liability for TCS accounted for at Project 329.59 later stage. Difference is on account of Deviation Trade Receivables of Koteshwar Sep-21 SBI 256.58 0.28 and Liability for TCS accounted for at Project 256.30 later stage. Difference is on account of Deviation, Trade Receivables of Koteshwar SBI 163.21 0.62 FRAS and Liability for TCS accounted Project 162.58 for at later stage Dec-21 Trade Receivables of Patan & HDFC Dwarka Wind Project, Dhukwan 6.55 - Nil 6.55 SHP and Kasargod Solar Project Difference is on account of Liability Trade Receivables of Koteshwar SBI 164.97 0.34 for TCS and POSCO receivables, Project 164.63 accounted for at later stage Mar-22 Trade Receivables of Patan & HDFC Dwarka Wind Project, Dhukwan 3.42 3.42 - Nil SHP and Kasargod Solar Project 15. Disclosures under Ind AS-24 “Related Party Disclosures”:- (A) List of Related Parties: (i) Parent: Name of Companies/entity Principle place of operation NTPC Limited India Govt. of Uttar Pradesh India (ii) Subsidiary company : TUSCO Limited (iii) Key Managerial Personnel: 198 Standalone Financial Statements Sl. Name Position held Period A. Whole Time Directors 1 Shri R.K. Vishnoi Chairman & Managing Director* W.e.f. 06.08.2021 2 Shri J. Behera Director (Finance) Continue 3 Shri Vijay Goel Director (Personnel) Upto 31.10.2021 4 Shri D.V. Singh Chairman & Managing Director Upto 30.04.2021 B. Nominee Directors 1 Shri U.K.Bhattacharya Non-executive Director W.e.f. 26.08.2020 2 Shri A.K.Gautam Non-executive Director W.e.f. 23.04.2020 3 Shri Jitesh John Non-executive Director W.e.f. 21.06.2021 4 Shri T.Venkatesh Non-executive Director Upto 31.01.2022 5 Shri Raj Pal Non-executive Director Upto 30.04.2021 C. Independent Directors 1 Smt. Sajal Jha Independent Director W.e.f. 10.11.2021 2 Dr. Bajalakaria JayaPrakash Naik Independent Director W.e.f. 10.11.2021 3 Shri Kesridevsingh Digvijaysingh Jhala Independent Director W.e.f. 28.03.2022 D. Chief Financial Officer and Company Secretary 1 Shri J.Behera Chief Financial Officer Continue 2 Ms. Rashmi Sharma Company Secretary Continue (*) Also holding additional charge of Director (Technical) w.e.f. 06.08.2021 and of Director (Personnel) w.e.f. 01.11.2021. (iv) Post Employment Benefit Plans: Name of Related Parties Principal place of operation THDC Employees Provident Fund Trust India THDCIL Employees Defined Contribution Superannuation Pension India Trust THDCIL Post Retirement Medical Benefit Fund Trust India (v) Other SEWA-THDC, a Company Sponsored Not for Proft Society, registered under Socities Act 1860, to undertake THDCIL’s CSR obligation U/s 135 of Companies Act 2013. Summary of transactions with related parties (other than for contractual obligations) - ` 27.20 Cr. disbursed to SEWA-THDC for CSR activities. thers entities with joint control or significant influence over the Company. (vi) O The Company is a subsidiary of Central Public Sector Undertaking (CPSU) w.e.f. 27.03.2020 controlled by Central Government by holding majority of shares. Pursuant to Paragraph 25 & 26 of Ind AS 24, entities over which the same government has control or joint control of, or significant influence, then the reporting entity and other entities shall be regarded as related parties. The Company has applied the exemption available for government related entities and have made limited disclosures in the financial statements. Name and nature of relationship with Government Sl. Name of Related Parties Nature of Relationship 1. Government of India Shareholder in Holding Company having control over company 2. NTPC Limited Holding Company (74.496%) 3. Govt. of Uttar Pradesh Shareholder (25.504%) 199 Standalone Financial Statements Transactions with the related parties: (i) Transactions with the related parties (Subsidiary Co.) are as follows: (` in Cr.) Particulars Subsidiary Company 31-Mar-2022 31-Mar-2021 Deputation of employees & trf. Of assets 0.78 3.56 Equity contribution made 7.40 7.40 Others 2.22 0.40 Remittance agst.CPF,Pension etc. 0.56 0.31 (ii) Transactions with the related parties (Post Employment Benefit Plans.) are as follows : (` in Cr.) Name of Related Parties 2021-22 2020-21 THDC Employees Provident Fund Trust 29.43 26.93 THDCIL Employees Defined Contribution Superannuation Pension Trust 24.04 32.32 THDCIL Post Retirement Medical Benefit Fund Trust 4.36 5.83 (iii) Compensation to Functional Directors & Key Managerial Personnel: Remuneration and allowances, other benefits and expenses to key managerial personnel including Independent director’s fees & expenses are ` 2.76 Cr. (Previous period ` 3.42 Cr.). (` in Cr.) Sl. Description Year ended 31.03.2022 Year ended 31.03.2021 Compensation to Key Management Personnel 1 Short Term Employee Benefits 2.40 2.93 2 Post Retirement & Other Long Term Employee Benefits 0.36 0.49 3 Termination Benefits 4 Share-Based Payment Total 2.76 3.42 (iv) Transactions with related parties under the control of the same government are as follows: (` in Cr.) Name of the Company Nature of Transactions by the Company For the period ended 31.03.2022 31.03.2021 NTPC Ltd. Consultancy Service 18.47 27.35 BHEL Purchase of Equipments & Spares with service contract 255.41 163.65 IOCL Purchase of Fuel 2.37 1.67 BPCL Purchase of Fuel 0.62 0.94 PGCIL Shifting of HT lines, Consultancy charges, Power Line 84.88 53.79 Diversion CMPDIL Consultancy 12.14 6.64 Utility Powertech Ltd. JV of NTPC & Reliance Manpower Supply 0.94 0.50 RITES Consultancy Service 15.48 4.27 NTPC Payment of dividend 378.59 527.25 NTPC VIDYUT VYAPAR NIGAM LIMITED Subscription Fees 0.01 - Solar Energy Corporation of India (SECI) Consultancy 5.61 1.09 Others Misc. 2.34 1.08 200 Standalone Financial Statements (v) Outstanding balances with related parties are as follows: (` in Cr.) Particulars 31-Mar-2022 31-Mar-2021 A. Amount Recoverable for sale/purchase of goods and services -NTPC Ltd. (Parent company) Nil Nil -TUSCO Ltd.(Subsidiary co.) Nil Nil B. Amount recoverbale -KMP 0.29 0.11 -Subsidiary company 2.11 3.56 (vi) Terms and conditions of transactions with the related parties: (a) Transactions with the related parties are made on normal commercial terms and condition and at market rates. (b) The company has assigned consultancy jobs to parent company prior to strategic sale of GoI Equity to M/s NTPC Ltd. on 27.03.2020, for Khurja Super Thermal Power Project on cost plus basis after mutual discussion and after taking into account the prevailing market condition. 16. Disclosure as per Ind As 27 ‘Separate financial Statements’ (` in Cr.) Company name Country of Incorporation Proportion of ownership interest As at 31.03.2022 As at 31.03.2021 TUSCO Ltd. India 74% 74% (incorporated on 12.09.2020) 17. Disclosures as per Ind AS 33 ‘Earnings per share’ The elements considered for calculation of earnings per share (Basic & Diluted) are as under 2021-22 2020-21 Net Profit after Tax but excluding Regulatory Income used as numerator (` Cr.) 924.50 1049.58 Net Profit after Tax including Regulatory Income used as numerator (` Cr.) 894.78 1092.41 Weighted average no. of equity shares used as denominator Basic : 36658817 Basic : 36658817 Diluted : 36658817 Diluted : 36658817 Earnings per Share excluding Regulatory Income ` Basic 252.19 286.31 ` Diluted 252.19 286.31 Earnings per Share including Regulatory Income ` Basic 244.08 297.99 ` Diluted 244.08 297.99 Nominal Value per share ` `1000 ` 1000 201 Standalone Financial Statements 18. (a) Income tax expense (i) Income tax recognized in the statement of profit and loss ` In Cr. Particulars For the year ended 31 March 2022 31 March 2021 Current tax expense Current year 183.05 238.66 Adjustment of earlier years 0.00 Pertaining to regulatory deferral account balances (A) 6.29 (9.06) Total current tax expenses (B) 189.34 229.60 (b) MAT credit available to the company in future but not recognized: MAT credit available to the Company in future but not recognized as at 31 March 2022 is ` 487.72 Cr. (31 March 2021 ` 580.97 Cr.) (ii) In compliance to the Ind AS 12 “Income Taxes” issued by the Ministry of Company Affairs.The net increase in the deferred tax liability of ` 35.02 Cr. (PY- ` 68.40 Cr.) has been booked to Statement of Profit & Loss. 19. The Company has Input Tax Credit under the provision of Goods & Service Tax lying in different locations. The said input tax credit(ITC) has been claimed over the GST Portal which will be utilised in future suject to the applicable provisons of GST and same has not been recognised as ITC available for utilisation in the books of accounts. 20. (i) Disclosure related to Corporate Social Responsibility (CSR) a. The company has spent an amount of ` 27.20 Cr. (PY ` 23.01 Cr.) towards CSR expenditure during the current financial year 2021-22 as against stipulated amount of ` 26.23 Cr. (PY ` 23.01 Cr.) equivalent to 2% of average net profit of preceding three financial years in terms of Section 135 of the Companies Act 2013 resulting in excess expenditure of ` 0.97 Cr. and the same excess expenditure shall be set-off against the requirment to spend under sub-section (5) of section 135 up to immediate succeeding three financial years i.e.upto FY 2024-25. b. Details of expenditure during FY 2021-22 in cash and yet to be paid along with the nature of expenditure (capital or revenue) is as under: (` in Cr.) In cash Yet to be paid Total (i) Const./Acquistion of any assets (ii) On purpose other than (i) 27.20 0.00 27.20 202 Standalone Financial Statements . The breakup of CSR expenditure incurred through SEWA-THDC, a Company Sponsored Not for Profit Society, registered under Societies c Act 1860, to undertake THDCIL’s CSR obligation U/s 135 of Companies Act 2013 is as under : Sl. No. Nature of CSR activities ` in Cr. 1 Sanitation, Health Care & Drinking Water 6.13 2 Education & Livelihood Programme 10.09 3 Women Empowering & Setting up old Age Homes etc. 0.25 4 Forest & Envionment, Animal Welfare etc. 1.68 5 Art & Culture, Public Libraries 2.21 6 Measuers for the benefit of Armed forces Veterans, War widow etc 0.10 7 Promotion of Sports 0.32 8 Prime Minister's National Relief fund etc. 4.05 9 Welfare of SC 0.00 10 Rural Development Projects 1.03 11 Calamity/Disaster 0.60 CSR Administrative Exps 0.74 Total 27.20 Disclosure related to Research & Development Expenditure (ii) The Company has incurred an amount of ` 3.46 Cr. (Revenue ` 3.46 Cr.) PY ` 4.52 Cr. (Revenue ` 4.52 Cr.)] towards Research & Development expenditure during the current financial year 2021-22 as per the R&D plan . 21. Information in respect of micro and small enterprises as at 31st March 2022 as required by Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) and the said outstanding is less than 45 days. Amount in Crore ` 2021-22 2020-21 a. Amount remaining unpaid to any supplier: i) Principal amount 2.63 0.45 ii) Interest due thereon 0.00 b. Amount of interest paid in terms of Section 16 of the MSMED Act along-with the amount paid to 0.00 the suppliers beyond the appointed day c. Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under 0.00 the MSMED Act. d. Amount of Interest accrued and remaining unpaid 0.00 e. Amount of further interest remaining due and payable even in the succeeding years, untill such date when the interest dues as above are actually paid to the small enterprises, for the purpose of 0.00 disallowances as a deductable expenditure under Section 23 of MSMED Act 22. Impact of changes in Significant Accounting Policy Sl. No. Policy Modifications Impact / Remark 1. Policy No. 4 - Development expenditure The Policy has been modified to improve the disclosure and considering the mining activities on Coal Mines has been modified by expected to commence in the Amelia Coal Mines and align the policy with the policy of the adding Policy No. 4.1, 4.2. & 4.3. holding company. No financial impact due to this change. 203 Standalone Financial Statements Disclosure as per Ind AS 116 ‘Leases’ 23. (c) The Company acquires land on leasehold basis for a period generally ranging from 05 years to 99 years from the government Effective from 1 April 2019, THDCIL has adopted Ind AS 116 st authorities which can be renewed further based on mutually ‘Leases’ and applied the standard to all lease contracts existing agreed terms and conditions. The leases are non cancellable. on 1 April 2019, using the modified retrospective method. The These leases are capitalized at the present value of the total same are adhered in the current fiscal year. minimum lease payments to be paid over the lease term. Future i. The Company’s significant leasing arrangements are in respect lease rentals are recognised as ‘Lease liabilities’ at their present of the following assets: values. The Right-of-use land is amortized considering the significant accounting policies of the Company. (a) Premises for residential use of employees. Offices and guest houses/ transit camps are on lease which are not non-cancellable In respect of leases at (b) & (c) above, the carrying amount of and are usually renewable on mutually agreeable terms. the right-of-use asset and the lease liability at the date of initial application is the carrying amount of the lease asset and lease (b) The Company has taken certain vehicles (other than electrical) on liability immediately before that date measured applying Ind AS lease for a period of three years, which can be further extended 17. at mutually agreed terms. There are no escalations in the lease rentals as per terms of the agreement. However, the Company ii. The following are the carrying amounts of lease liabilities has purchase option for such vehicles at the end of the lease recognised and the movements during the period: term. (` in Cr.) Particulars For the Year ended 31 March 2022 For the Year ended 31 March 2021 Opening Balance 13.25 15.88 - Additions in lease liabilities 25.35 1.72 - Interest cost during the year 2.89 1.52 - Payment of lease liabilities 7.33 5.87 Closing Balance 34.16 13.25 Current 4.17 4.06 Non Current 29.99 9.19 iii. Maturity Analysis of the lease liabilities: (` in Cr.) Contractual undiscounted cash flows As at 31 March 2022 As at 31 March 2021 3 months or less 1.65 1.13 3-12 Months 4.98 3.42 1-2 Years 7.88 5.21 2-5 Years 10.52 2.05 More than 5 Years 40.80 7.22 Lease liabilities 65.82 19.04 iv. The following are the amounts recognized in profit or loss: (` in Cr.) Particulars As at 31 March 2022 As at 31 March 2021 Depreciation expense for right-of-use assets 17.27 17.19 Interest expense on lease liabilities 2.89 1.53 Expense relating to short-term leases 1.94 2.44 v. The following are the amounts of cash flow against leases: (` in Cr.) Particulars For 31 March 2022 For 31 March 2021 Cash Outlow from leases 7.33 5.87 Cash outflow relating to short-term leases 1.94 2.43 204 Standalone Financial Statements 24. Disclosures under the provisions of IND AS 19–Employee leave encashment is recognised on the basis of actuarial Benefits are as under: valuation. a. Defined contribution Plan: -Pension (iv) Post Retirement Medical Benefit (PRMB): The company has Defined Contribution Pension Scheme as approved by Ministry of Power (MoP). The liability for the The Company has Post Retirement Medical Benefit Scheme, same is recognised on accrual basis.The scheme is funded under which retired employee, spouse of retired employee and managed by a separate trust formed for this purpose. are provided medical facilities in the Company hospitals/ empanelled hospitals. They can also avail treatment as Out- b. Defined benefit plans: Patient subject to a ceiling fixed by the Company. Further, (i) Employers contribution to Provident Fund: a trust has been created to manage the scheme and fully functional . The liability towards the same is recognised on The Company pays fixed contribution to Provident Fund at the basis of actuarial valuation. The obligation of the company predetermined rates to a separate trust, which invests the is limited to the payment of the shortfall of Present Value of fund in permitted securities. The obligation of the company is Plan Assets over the Present Value of Obligation as ascertained limited to such fixed contribution and to ensure a minimum rate through Actuarial Valuation. Based on the actuarial valuation ` of return to the members as specified by GOI. Based on the 5.91 Cr. (PY ` 4.29 Cr.) as the Present Value of Obligations actuarial valuation ` 25.56 Cr. (PY Nil) as the Present Value of exceeds the Fair Value of Plan Assets by ` 5.91 Cr. (PY ` 4.29 Obligations exceeds the Fair Value of Plan Assets by ` 25.56 Cr.) has been provided in the books Cr. (PY ` 0.21 Cr. as the Fair value of plan assets exceeds the present value of obligations) has been provided in the books (v) Other benefit (Baggage/LSA/FBS) plans: Further, contribution to employee pension scheme is paid to the appropriate authorities.. Other retirement benefit plans include baggage allowance for settlement at any other place where he / she may like, (ii) Gratuity: memento at the time of retirement and monetary assistance The Company has a defined benefit Gratuity Plan, which is to the legal heir(s) in the event of death and Total Permanent regulated as per the provisions of Payment of Gratuity Act, Disablement leading to separation of employee as a Social 1972. The liability for the same is recognized on the basis of Security Measure .These schemes are unfunded and liability actuarial valuation. for the same is recognised on the basis of actuarial valuation. (iii) Leave encashment: Provision for employee benefits has been made for the current period using the Actuarial Valuation done as at 31.03.2022. The Company has a defined benefit leave encashment plan for Accordingly, disclosure under the provision of Ind AS 19 on its Employees. Under this plan they are entitled to encashment “Employee Benefits” for the Financial Year ended 31.03.2022 of earned leaves and medical leaves subject to limits and is given below: other conditions specified for the same. The liability towards Table- 1: Key Actuarial assumption & Risk exposures for Actuarial Valuation as at: Particular 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Mortality Table IALM (2012-14) IALM (2012-14) IALM (2012-14) IALM (2006-08) IALM (2006-08) Discount Rate 7.00% 6.75% 6.75% 7.75% 7.60% Future Salary Increase 6.50% 6.50% 6.50% 8.00% 8.00% escription of Risk Exposures: Valuations are based on certain D Discount Rate : Reduction in discount rate in subsequent valuations C) assumptions, which are dynamic in nature and vary over time. As such can increase the plan’s liability. company is exposed to various risks as follow - Mortality & disability : Actual deaths & disability cases proving D) A) Salary Increases: Actual salary increases will increase the Plan’s lower or higher than assumed in the valuation can impact the liabilities. liability. Increase in salary increase rate assumption in future valuations will also increase the liability. E) Withdrawals : Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent B) Investment Risk : If Plan is funded then assets liabilities mismatch valuations can impact Plan’s liability. & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability. 205 Standalone Financial Statements Table – 2: Change in Present Value of Obligations (PVO) (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Leave (EL) Sick Leave (HPL) Post Retirement Others-Baggage Medical Benefit Allowance/ (PRMB) Long Service Award/FBS 189.99 66.18 116.13 87.30 14.29 PVO at the beginning of the year {191.01} {56.07} {109.06} {79.85} {12.63} 12.82 4.47 7.84 5.89 0.96 Interest cost {12.89} {3.78} {7.36} {5.39} {0.85} 0.00 Past service cost {1.18} 3.95 13.66 4.23 2.61 1.13 Current service cost {5.08} {13.38} {4.69} {2.56} {1.15} (20.49) (15.59) (6.34) (4.71) (2.34) Benefit paid {(17.94)} {(13.31)} {(4.11)} {(3.42)} {(1.33)} (2.89) 8.15 (3.21) 4.42 0.22 Actuarial (Gain)/loss {(1.05)} {6.26} {(0.88)} {2.93} {(0.20)} 183.38 76.88 118.64 95.51 14.26 PVO at the end of the year {189.99} {66.18} {116.13} {87.30} {14.29} Table – 3: Amount recognized in Balance Sheet (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Leave (EL) Sick Leave (HPL) Post Retirement Others-Baggage Medical Benefit Allowance/ (PRMB) Long Service Award/FBS 183.38 76.88 118.64 95.51 14.26 PVO at the end of the year {189.99} {66.18} {116.13} {87.30} {14.29} Fair Value of Plan Assets at the end 89.61 NA NA NA NA of year {83.01} 89.61 Funded Liab./Prov Nil Nil Nil Nil {83.01} 183.38 76.88 118.64 5.91 14.26 Unfunded Liab./Prov {189.99} {66.18} {116.13} {4.29} {14.29} Unrecognised actuarial gain/loss Net liability recognized in the Balance 183.38 76.88 118.64 5.91 14.26 Sheet {189.99} {66.18} {116.13} {4.29} {14.29} 206 Standalone Financial Statements Table – 4: Amount recognized in Statement of Profit & Loss, OCI & EDC . (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Leave (EL) Sick Leave (HPL) Post Retirement Others-Baggage Medical Benefit Allowance/ (PRMB) Long Service Award/FBS 3.95 13.66 4.23 2.61 1.13 Current Service Cost {5.08} {13.38} {4.69} {2.56} {1.15} 0.00 Past Service Cost - - - - {1.18} 12.82 4.47 7.83 - 0.96 Interest Cost {12.89} {3.78} {7.36} {0.39} {0.85} Net Actuarial (gain)/loss recognized (2.89) 8.15 (3.21) 4.42 0.22 for the year in OCI {(1.05)} {6.26} {(0.88)} {2.93} {(0.20)} Expense recognized Statement in 16.77 26.28 8.85 2.61 2.09 Profit & Loss/EDC for the year. {17.97} {23.42} {11.18} {2.95} {3.19} Table – 5: Sensitivity analysis (` in Cr.) Impact due to Gratuity Earned Leave (EL) Sick Leave (HPL) PRMB Others 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 Discount rate Increase of (4.62) (5.09) (2.27) (2.09) (3.00) (3.20) (12.32) (10.17) (0.36) (0.38) 0.50% Decrease of 4.86 5.36 2.41 2.23 3.14 3.37 12.54 10.34 0.37 0.39 0.50% Salary rate Increase of 1.02 1.24 2.41 2.22 3.14 3.36 NA NA NA NA 0.50% Decrease of (1.09) (1.34) (2.29) (2.10) (3.02) (3.22) NA NA NA NA 0.50% Medical cost /settlement cost rate Increase of NA NA NA NA NA NA 12.62 10.37 0.16 0.18 0.50% Decrease of NA NA NA NA NA NA (12.38) (10.21) (0.16) (0.17) 0.50% 207 Standalone Financial Statements Other disclosures: (` in Cr.) Gratuity 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the 183.38 189.99 191.01 178.93 174.87 end of the year Actuarial (Gain)/loss (2.89) (1.05) 8.74 (0.12) (7.85) Actuarial (Gain)/loss recognized (2.89) (1.05) 8.74 (0.12) (7.85) through Statement of OCI Expense recognized in Statement 16.77 17.97 19.68 19.35 19.59 of Profit & Loss/EDC for the year Earned Leave (EL) 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the 76.88 66.18 56.07 43.04 27.72 end of the year Actuarial (Gain)/loss 8.15 6.26 11.60 11.38 4.52 Expense recognized in Statement 26.28 23.42 27.71 25.85 10.03 of Profit & Loss/EDC for the year Sick Leave (HPL) 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the 118.64 116.13 109.06 98.83 88.81 end of the year Actuarial (Gain)/loss (3.21) (0.88) 0.83 1.78 (46.16) Expense recognized in Statement 8.85 11.18 13.00 12.79 (32.84) of Profit & Loss/EDC for the year Post Retirement Medical Benefit 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 (PRMB) Present value of obligation at the 95.51 87.30 79.85 70.02 62.70 end of the year Unrecognised Actuarial (Gain)/ 3.29 1.34 2.76 3.85 1.22 loss Expense recognized in Statement 2.61 2.95 3.07 6.94 6.44 of Profit & Loss/EDC for the year Others-Baggage Allowance/ 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Long Service Award/FBS Present value of obligation at the 14.26 14.29 12.63 12.43 8.92 end of the year Actuarial (Gain)/loss 0.22 (0.20) 0.43 (0.29) (0.28) Actuarial (Gain)/loss recognized 0.22 (0.20) 0.43 (0.29) (0.28) through Statement of OCI Expense recognized in Statement 2.09 3.19 2.14 5.16 1.38 of Profit & Loss/EDC for the year a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances 25. in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables for energy sales, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipts of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers are generally done on 31st December. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters with the negative assertion as referred in the Standarad on Auditing (SA) 505 (Revised) “External Confirmatios”, were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustment, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact. b) In the opinion of the management, the value of assets, other than property, plant & equipment and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet. 208 Standalone Financial Statements 26. Payment to Auditors (including GST) (` in Cr.) Sl. Description 2021-22 2020-21 I. Statutory Audit Fees 0.15 0.15 II. For Taxation matter (Tax Audit) 0.03 0.03 III. For Company Law matter IV. For Management services V. For other Services(Certification) 0.07 0.06 VI. For Reimbursement of expenditure 0.05 0.03 Payment to the Auditors includes ` 0.01 Cr. (` 0.02 Cr.) relating to earlier year. 27. a) Reconciliation of Cash & Cash Equivalents between Cash Flow Statement and Balance Sheet is as under: (` in Cr.) Particulars Note No 31.03.2022 31.03.2021 Cash And Cash Equivalents 12 87.77 225.08 Add: Bank Balances under Lien 13 0.00 0.00 Less: Over Draft Balance incl.STL 26 926.10 0.00 Cash & Cash Equivalent as per Cash Flow Statement (838.33) 225.08 In March 2017 the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules 2017 notifying amendments to Ind AS 7 ‘Statement of cash flows’. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7 ‘Statement of cash flows’. The amendments are applicable to the company from April 1 2017 and they introduce additional disclosures that will enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes arising from cash flows and non-cash changes suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities to meet the disclosure requirement. (` in Cr.) Cash flow from Financing Opening Current Closing Change Remarks Activities (2021-22) Year Share Capital Issued 3665.88 3665.88 (Including pending allotment) Borrowings-Non Current 5014.22 6653.98 1639.76 Addition-Bonds ` 1200.00 Cr.,Term Loan (BOB) ` 675.00 (Bonds & other secured Loans) Cr., World Bank (Net) ` 12.96 Cr., Repayment – Term Loan ` 107.80 Cr., Term Loan (PNB) ` 140.40 Cr. Borrowings-Current 1233.51 426.63 (806.88) Addition-,Term Loan (BOB) ` 125.00 Cr., World Bank (Net) ` 3.61 Cr., Repayment – STL (SBI, Axis Bank & HDFC Bank) ` 700.00 Cr., Term Loan (REC/PFC) ` 235.49 Cr. Lease Liability 13.25 34.16 20.91 Net addition in Lease Liab. ` 20.91 Cr. Interest on Loans Finance costs paid 489.84 Less capitalized – CWIP (355.73) (134.11) Charged to Statament of P&L Late Payment Surcharge 225.46 225.46 Other income Dividend paid (508.20) (508.20) Payment of Dividend Net Cash flow from financing 436.94 209 Standalone Financial Statements 28. Ratios Sl. Particulars Numerator Denominator Year ended % Variance Reason for Variance* No. 31.03.2022 31.03.2021 1 2 3 4 5 6 7 8 a Current Ratio Current Assets Current 0.75 1.04 (27.88%) Due to decrease in Trade Liabilities Receivables from ` 1162.03 Cr. to ` 723.72 Cr. b Debt Equity Total debt Networth 0.78 0.63 23.81% Ratio c Debt Service (Net Profit After Taxes (Interest on 1.98 2.08 (4.81%) Coverage Ratio + Interest on debt debt + Lease + Depreciation & Payments Amortisation Exp + + Principal Exceptional Items) repayments of long term debt) d Return on Net profit after taxes Average 8.85% 11.23% (21.19%) Equity Ratio Stakeholder's Equity e Inventory Revenue from Average 50.65 53.33 (5.03%) turnover ratio Operations Inventory f Debtors Revenue from Average trade 2.04 1.19 71.43% Due to decrease in Trade turnover ratio Operations receivables Receivables from ` 1162.03 (Net Credit Sales) Cr. to ` 723.72 Cr. g Trade Payables Net Credit Purchases Average Trade 2.19 2.14 2.34% Turnover Ratio Payables h Net Capital Revenue from Working Capital (10.27) 2.87 (457.84%) Due to decrease in Current Turnover Ratio Operations + Current Assets & increase in Current Maturities of Long Term Liab. Borrowings i Net profit Net profit after taxes Net Sales 46.57% 60.82% (23.43%) margin j Return on Earning before Interest Capital 7.34% 10.23% (28.25%) Due to decrease in Net Profit. Capital & Taxes Employed Employed k Return on Income from Investment Investment (8.41%) (8.04%) 4.60% Investment (*) Resaon for variance is required for any change in the ratio by more than 25% as comapred to preceding year. 29. PY figures have been regrouped/ reclassified wherever necessary to make the figures comparable with the figures of the current year. For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 210 Standalone Financial Statements INDEPENDENT AUDITORS’ REPORT To, Basis for Opinion The Members of THDC INDIA LIMITED We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under Report on the Audit of the Standalone Financial section 143(10) of the Act. Our responsibilities under those Standards Statements are further described in the Auditor’s Responsibilities for the Audit of the Standalone Financial Statements section of our report. We are Opinion independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) We have audited the accompanying Standalone Financial Statements together with the ethical requirements that are relevant to our audit of THDC India Limited (“the Company”), which comprise the Balance of the standalone financial statements under the provisions of the Act Sheet as at 31st March 2022, the Statement of Profit and Loss (including and the Rules made there under, and we have fulfilled our other ethical Other Comprehensive Income), the Statement of Changes in Equity and responsibilities in accordance with these requirements and the ICAI’s the Statement of Cash Flows for the year then ended, and a summary Code of Ethics. We believe that the audit evidence we have obtained is of significant accounting policies and other explanatory information. sufficient and appropriate to provide a basis for our audit opinion on the (hereinafter referred to as “Standalone Financial Statements”) standalone financial statements. In our opinion and to the best of our information and according to the Key Audit Matters explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (“the Act”) Key audit matters are those matters that, in our professional judgment, in the manner so required and give a true and fair view in conformity were of most significance in our audit of the Standalone Financial with the Indian Accounting Standards prescribed under section 133 Statements of the current period. These matters were addressed in the of the Act read with the Companies (Indian Accounting Standards) context of our audit of the Standalone Financial Statements as a whole, Rules, 2015, as amended, (“Ind AS”) and other accounting principles and in forming our opinion thereon, and we do not provide a separate generally accepted in India, of the state of affairs of the Company as at opinion on these matters. For each matter below, description of how March 31, 2022, and its profit & total comprehensive income, changes our audit addressed the matter is provided in that context. We have in equity and its cash flows for the year ended on that date. determined the matters described below to be the key audit matters to be communicated in our report:- Sl. No. Key Audit Matters Addressing the Key Audit Matters 1. Recognition and Measurement of Revenue for Sale of Energy We have obtained an understanding of the CERC Tariff Regulations, orders, circulars, guidelines and the Company’s The company records revenue from sale of energy as per the internal circulars and procedures in respect of recognition and principles enunciated under Ind AS 115, based on tariff rates measurement of revenue from sale of energy comprising of approved by the Central Electricity Regulatory Commission (CERC). capacity and energy charges and adopted the following audit However, in cases where tariff rates are yet to be approved, procedures: provisional rates are adopted considering the applicable CERC Tariff Regulations. - Evaluated and tested the effectiveness of the Company’s design of internal controls relating to recognition and measurement of This is considered as key audit matter due to the nature and extent of revenue from sale of energy. estimates made as per the CERC Tariff Regulations, which leads to recognition and measurement of revenue from sale of energy being - Verified the accounting of revenue from sale of energy based complex and judgmental. on tariff rates approved by the CERC. (Refer Note No. 33 to the Standalone Financial Statements, read with Based on the above procedure performed, the recognition and the Significant Accounting Policy No. 14) measurement of revenue from sale of energy are considered to be adequate and reasonable. 211 Standalone Financial Statements Sl. No. Key Audit Matters Addressing the Key Audit Matters 2. Contingent Liabilities There are a number of litigations pending before various forums We have obtained an understanding of the Company’s internal against the Company and the management’s judgment is required instructions and procedures in respect of estimation and for estimating the amount to be disclosed as contingent liability. disclosure of contingent liabilities and adopted the following audit procedures: We identified this as a key audit matter because the estimates on which these amounts are based involve a significant degree - understood and tested the design and operating effectiveness of management judgment in interpreting the cases and it may be of controls as established by the management for obtaining all subject to management bias. relevant information for pending litigation cases; (Refer Note No. 43.2 to the Standalone Financial Statements, read - discussed with the management any material developments with the Significant Accounting Policy No. 13) and latest status of legal matters; - read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities; - examined management’s judgements and assessments whether provisions are required; - considered the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote; - reviewed the adequacy and completeness of disclosures; Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable. Emphasis of Matter Responsibility Report and other company related information, but does not include the Standalone Financial Statements and our Auditors We draw attention to the following matters in the Notes to the Report thereon. The Other information’s as stated above are expected Standalone Financial Statements: to be made available to us after the date of this auditor’s report. a. Para 7 (i) and (ii) of Note No. 43 of the Standalone Financial Our opinion on the Standalone Financial Statements does not cover Statements regarding delay in completion of VPHEP and Tehri the other information and we do not and will not express any form of PSP projects owing to factors beyond control of company. assurance conclusion thereon. Further, considering the acute financial crisis of M/s HCC, Board of Directors of the Company have approved arrangement of gap In connection with our audit of the Standalone Financial Statements, funding to contractor for expeditious completion of projects with our responsibility is to read the other information identified above when financial regulation. it becomes available and, in doing so, consider whether the other information is materially inconsistent with the Standalone Financial b. Para 5 (ii) of Note No. 43 of the Standalone Financial Statements Statements or our knowledge obtained in the audit, or otherwise regarding 1244.095 Hac land acquired for various projects is appears to be materially misstated. being used for project works by THDCIL. The title deed of such land is yet to be executed. When we read the ‘Other Information’ as stated above, if we conclude that there is a material misstatement therein, we are required to Further, out of the above land, 44.429 Hac of Civil Soyam Land communicate the matter to those charged with governance and amounting to ` 49.03 crore recognised in the FY 2020-21 has describe necessary actions required as per applicable laws and been reversed during the current financial year. regulations. Our opinion is not modified in respect of these matters. Responsibility of Management and Those Charged with Governance for the Standalone Financial Statements Information Other than the Standalone Financial Statements and Auditor’s Report Thereon The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act, with respect to the preparation of these The Company’s Board of Directors is responsible for the preparation of Standalone Financial Statements that give a true and fair view of the the other information. The other information comprises the information financial position, financial performance, including comprehensive included in the Corporate Governance Report, Director’s Report income, changes in equity and cash flows of the Company in including Annexures, Management Discussion and Analysis, Business 212 Standalone Financial Statements accordance with the accounting principles generally accepted in India, • Conclude on the appropriateness of management’s use of the including the Indian Accounting Standards (Ind AS) prescribed under going concern basis of accounting and, based on the audit Section 133 of the Act, read with relevant rules issued there under. evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt This responsibility also includes the maintenance of adequate on the Company’s ability to continue as a going concern. If we accounting records in accordance with the provision of the Act for conclude that a material uncertainty exists, we are required to safeguarding of the assets of the Company and for preventing and draw attention in our auditor’s report to the related disclosures detecting the frauds and other irregularities; selection and application in the Standalone Financial Statements or, if such disclosures are of appropriate accounting policies; making judgments and estimates inadequate, to modify our opinion. Our conclusions are based on that are reasonable and prudent; and design, implementation and the audit evidence obtained up to the date of our auditor’s report. maintenance of adequate internal financial control, that were operating However, future events or conditions may cause the Company to effectively for ensuring the accuracy and completeness of the cease to continue as a going concern. accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are • Evaluate the overall presentation, structure and content of the free from material misstatement, whether due to fraud or error. Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the In preparing the Standalone Financial Statements, management is underlying transactions and events in a manner that achieves fair responsible for assessing the Company’s ability to continue as a going presentation. concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management Materiality is the magnitude of misstatements in the Standalone either intends to liquidate the Company or to cease operations, or has Financial Statements that, individually or in aggregate, makes it no realistic alternative but to do so. probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. We The Board of Directors is also responsible for overseeing the Company’s consider quantitative materiality and qualitative factors in (i) planning financial reporting process. the scope of our audit work and in evaluating the results of our work; Auditor’s Responsibilities for the Audit of the Standalone Financial and (ii) to evaluate the effect of any identified misstatements in the Statements Standalone Financial Statements. Our objectives are to obtain reasonable assurance about whether the We communicate with those charged with governance regarding, Standalone Financial Statements as a whole are free from material among other matters, the planned scope and timing of the audit and misstatement, whether due to fraud or error, and to issue an auditor’s significant audit findings, including any significant deficiencies in report that includes our opinion. Reasonable assurance is a high internal control that we identify during our audit. level of assurance, but is not a guarantee that an audit conducted We also provide those charged with governance with a statement in accordance with SAs will always detect a material misstatement that we have complied with relevant ethical requirements regarding when it exists. Misstatements can arise from fraud or error and are independence, and to communicate with them all relationships considered material if, individually or in the aggregate, they could and other matters that may reasonably be thought to bear on our reasonably be expected to influence the economic decisions of users independence, and where applicable, related safeguards. taken on the basis of these Standalone Financial Statements. From the matters communicated with those charged with governance, As part of an audit in accordance with SAs, we exercise professional we determine those matters that were of most significance in the audit judgment and maintain professional skepticism throughout the audit. of the Standalone Financial Statements of the current period and are We also: therefore the key audit matters. We describe these matters in our • Identify and assess the risks of material misstatement of the auditor’s report unless law or regulation precludes public disclosure Standalone Financial Statements, whether due to fraud or error, about the matter or when, in extremely rare circumstances, we determine design and perform audit procedures responsive to those risks, that a matter should not be communicated in our report because the and obtain audit evidence that is sufficient and appropriate adverse consequences of doing so would reasonably be expected to to provide a basis for our opinion. The risk of not detecting a outweigh the public interest benefits of such communication. material misstatement resulting from fraud is higher than for Report on Other Legal and Regulatory Requirements one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of 1. As required by the Companies (Auditor’s Report) Order, 2020 internal control. (“the Order”) issued by the Central Government of India in term of sub-section (11) of section 143 of the Companies Act, 2013, • Obtain an understanding of internal control relevant to the audit we give in the Annexure ‘A’ a statement on the matters specified in order to design audit procedures that are appropriate in the in the paragraphs 3 and 4 of the Order, to the extent applicable. circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company 2. The Comptroller & Auditor-General of India has issued directions has adequate Internal Financial Controls with reference to indicating the areas to be examined in terms of sub-section (5) Financial Statements in place and the operating effectiveness of of section 143 of the Companies Act 2013, the compliance of such controls. which is set out in Annexure ‘B’. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management. 213 Standalone Financial Statements 3. As required by section 143(3) of the Act, we report that: lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company a) We have sought and obtained all the information and (“Ultimate Beneficiaries”) or provide any guarantee, explanations which to the best of our knowledge and belief security or the like on behalf of the Ultimate Beneficiaries; were necessary for the purposes of our audit. b. The Management has represented that, to the best of b) In our opinion proper books of account as required by law its knowledge and belief, no funds (which are material have been kept by the Company so far as it appears from our either individually or in aggregate) have been received examination of those books. by the company from any person(s) or entity(ies), c) The Balance Sheet, the Statement of Profit and Loss including foreign entities (“Funding Parties”), with the (including Other Comprehensive Income), Statement of Cash understanding, whether recorded in writing or otherwise, Flows and Statement of Changes in Equity dealt with by this that the company shall, whether, directly or indirectly, Report are in agreement with the books of account. lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party d) In our opinion, the aforesaid Standalone Financial Statements (“Ultimate Beneficiaries”) or provide any guarantee, comply with the Indian Accounting Standards (Ind AS) security or the like on behalf of the Ultimate Beneficiaries; specified under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015 as amended. c. Based on the audit procedures performed that have been considered reasonable and appropriate in the e) In terms of Notification No. G.S.R. 463(E) dated 05th circumstances, nothing has come to our notice that June, 2015 issued by the Ministry of Corporate Affairs, has caused us to believe that the representations under the provisions of Section 164 (2) of the Act regarding sub-clause (i) and (ii) of Rule 11 (e),as provided under disqualification of directors, are not applicable to the (a) and (b) above, contain any material mis-statement. Company. v. As stated Note 19 in the standalone financial statements:- f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating (a) The final dividend of the previous year, declared and paid effectiveness of such controls, refer to our separate Report by the company during the year is in accordance with section in Annexure ‘C’. 123 of the Companies Act, 2013. g) In terms of Notification No. G.S.R. 463 (E) dated 05th June, (b) The interim dividend declared and paid by the company 2015 issued by the Ministry of Corporate Affairs, Government during the year and until the date of this report is in of India, Section 197 of the Act as regards the managerial accordance with section 123 of the Companies Act, 2013. remuneration is not applicable to the Company; and (c) The Board of Directors of the Company have proposed h) With respect to the other matters included in the Auditor’s final dividend for the year which is subject to the approval Report in accordance with Rule 11 of the Companies (Audit of the members at the ensuing Annual General Meeting. The and Auditors) Rules, 2014, in our opinion and to the best of amount of dividend proposed is in accordance with Section our information and according to the explanations given to 123 of the Act , as applicable. us:- i. The Company has disclosed the impact of pending For S.N. KAPUR & ASSOCIATES litigations on its financial position in its Standalone Chartered Accountants Financial Statements – Refer Note 43.2 to the Standalone Firm’s ICAI Reg. No. 001545C Financial Statements; Sd/- ii. The Company did not have any long term contracts (CA. S. N. KAPUR) including derivative contracts for which there were any Partner material foreseeable losses; M.No.: 014335 iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund Place: Lucknow by the Company. Date: 13.05.2022 iv. a. The Management has represented that, to the best of UDIN: 22014335AIYDBN8799 its knowledge and belief, no funds(which are material either individually or in aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity (ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly 214 Standalone Financial Statements ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT (Annexure “A” referred to in paragraph 1 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date to the members of THDC India Limited on the Standalone Financial Statements for the year ended 31st March, 2022) We report that:- though not material, noticed on such verification, have been dealt properly in the books of accounts. In our opinion, i. (a) (A) The Company has generally maintained records of frequency of verification is reasonable having regard to the Property, Plant and Equipment showing full particulars size of the Company and the nature of its business. It is including quantitative details and situation of Property, further informed that physical verification of Generation Plant Plant and Equipment. The records for movement of the & Machinery, irrespective of their location (Tehri/Koteshwar/ assets have been properly maintained. Patan/Devbhoomi/Dhukwan/Kasargod) is not done due to (B) The company is maintaining proper records showing their immovable nature. full particulars of intangible assets. (c) The title deeds of all the immovable properties disclosed in (b) The Property, Plant and Equipment have been physically the financial statements are held in the name of the Company verified by Independent Firms of Chartered Accountants/Cost except as follows: Management Accountants during the year and discrepancies, Description Gross Held in the name of Whether title deed Period held- Reason for not being of property carrying holder is a promoter, indicate range, held in the name value director or their where appropriate of the company (` in Cr.) relative or employee 1 2 3 4 5 6 Land Freehold 0.78 Private land in the name of No Acquired in Transfer of title deed in the name of different villagers between corporation is still under process 1976 to 2006 Land Freehold Government / Forest Dept No Inception from the Non-transferable formation of the company Land Freehold 1.21 Private land in the name of No Acquired in the Out of total land of 5.974 hac., title different villagers year 2012 deeds of 3.974 hac. has already been transferred and for balance land of 2.068 hac is under process. Land Freehold 0.50 Govt. Land No 31.10.2006 This land is not in the name of THDCIL, it was handed over to THDCIL on adhoc basis by Director Rehabilitation on 31.10.2006. Land Freehold 0 .01 Government / Forest Dept No Jul 1988 Transfer from UP Irrigation Dept as asset transfer Land under 38.63 Private land in the name No Acquired in Transfer of title deed in the name of submergence of different villagers between 1976 corporation is still under process to 2006 RoU Assets (*) Government / Forest Dept No Acquired in 1989 Lease deed is yet to be signed RoU Assets 309.49 GoUP/UPSIDC No 14.12.2013 Under process RoU Assets 48.85 Govt. Land No 13.09.2021 Non-transferable CBA Land RoU Assets 1.99 Govt. Land No 20.12.2021 Non-transferable RoU Assets 9.77 Pvt. No 20.12.2021 Non-transferable (*) Provision for ` 49.03 Cr. made in the FY 2020-21 reversed. 215 Standalone Financial Statements (d) The company has not revalued its Property, Plant and no material discrepancies were noticed during physical Equipment (including Right of Use assets) or intangible verification. assets or both during the year. (b) The company has been sanctioned working capital limits (e) No proceedings have been initiated during the year in excess of five crore rupees, in aggregate, from banks or are pending against the company as at 31st March or financial institutions on the basis of security of current 2022 for holding any benami property under the Benami assets. The quarterly returns or statements filed by the Transactions (Prohibition) Act, 1988 (as amended in company with such banks or financial institutions, were not 2016) and rules made there under. in agreement with the books of account of the Company. The details are as follows:- ii. (a) The Management has conducted the physical verification of inventory at reasonable interval during the year and Amount in Crore ` Particulars of Securities provided Amount of Reason for Material Difference discrepancies Name of Description of Securities Amount as Amount as FY 2021-22 Bank per books reported in of accounts the quarterly / statement Jun-21 SBI Trade Receivables of 329.92 329.59 0.33 Difference is on account of Koteshwar Project Deviation and Liability for TCS accounted for at later stage. Sep-21 SBI Trade Receivables of 256.58 256.30 0.28 Difference is on account of Koteshwar Project Deviation and Liability for TCS accounted for at later stage. Dec-21 SBI Trade Receivables of 163.21 162.58 0.62 Difference is on account of Koteshwar Project Deviation, FRAS and Liability for TCS accounted for at later stage. Mar-22 SBI Trade Receivables of 164.97 164.63 0.34 Difference is on account of Koteshwar Project Liability for TCS and POSCO receivables, accounted for at later stage. (iii) The company has made investment of ` 7.40 Crores in its (vi) The Central Government has prescribed maintenance of Cost subsidiary “TUSCO Ltd” during the year which is not prejudicial to Records under Section 148(1) of the Act read with Companies the company’s interest. However, the company has not provided (Cost Records & Audit) Rules, 2014, as amended and we are of any guarantee or security or granted any loans or advances, the opinion that prima facie the prescribed accounts and records secured or unsecured to Companies, Firms, Limited Liability have been made and maintained. We have not, however, made Partnerships or other parties covered in the register maintained detailed examination of the records with a view to determine under Section 189 of the Companies Act, 2013. Accordingly, whether they are accurate and complete. Cost Audit for the F.Y. clause (iii) (a),(b),(c),(d),(e)& (f) of paragraph 3 of the Order is 2021-22 is under process. not applicable. (vii) (a) According to the information and explanation given to us, the (iv) In our opinion and according to information and explanation Company has been generally regular in depositing undisputed given to us the company has in respect of loans, investments, statutory dues with appropriate authorities including Goods guarantees, and security, complied with the provision of section and Services Tax, provident fund, employees’ state insurance, 185 and 186 of the Companies Act, 2013. income tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues to the (v) Since the Company has not accepted any deposits from the appropriate authorities applicable to the company and that there public, the question of compliance with the directives issued by are no undisputed statutory dues were outstanding as at March the Reserve Bank of India and the provisions of section 73 to 76 31, 2022 for a period of more than six months from the date of of Companies Act 2013, and rules framed there under, does not becoming payable. As informed, the provisions of the Employees arise. State Insurance Act are not applicable to the Company. 216 Standalone Financial Statements (b) According to the information and explanation given to us, details of disputed dues of sales tax, income tax, custom duty, excise duty, service tax and value added tax and any other statutory dues, if any as at March 31, 2022 are as follows: Name of Statute Nature of Duties Amount Financial year to Deposit under Forum at which, (` In Cr.) which it pertains protest case is pending (` in Cr.) Uttarakhand Water Tax on Water Cess 751.82 2015-16 to 2021-22 Nil High Court of Electricity Generation Act, Uttarakhand, Nainital 2012 Uttarakhand Green Energy Green Energy Cess 231.77 2015-16 to 2021-22 Nil High Court of Cess Act, 2014 Uttarakhand, Nainital Building & Other Construction Labour Cess 2.80 2004-05 to 2014-15 Nil High Court of Worker Welfare Cess Act,1996 Uttarakhand, Nainital Income Tax Act.1961 Int u/s 234 B,C 1.72 2006-07 1.72 ACIT, Dehradun Employees Pension Pension 3.53 July 1991 to 2010 Nil CGIT, Lucknow Scheme 1995 Contribution Employees Pension Late Payment/ 14.84 July 1991 to 2010 Nil CGIT, Lucknow Scheme 1995 & amp; EDLI Inspection Scheme 1976 Charges (viii) There were no transactions relating to previously unrecorded 3(ix)(f) is not applicable. income that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, (x) (a) As per the information and explanation given to us by 1961 (43 of 1961). the management, the Company has applied the money raised during the year by way of equity, debt instruments (ix) (a) On the basis of audit procedures adopted by us and i.e. Corporate Bonds (Series V) on Private Placement according to the records and as per the information and Basis to meet out the Capital expenditure requirements of explanation given to us by the management, the company ongoing projects under construction including recoupment has not defaulted in repayment of loans and borrowings of expenditure already incurred and term loans for the or in the payment of interest thereon to any lender. Hence purposes for which they were raised. reporting under the clause 3(ix)(a) of the order is not applicable. (b) During the year, the company has not made any preferential allotment or private placement of shares or convertible (b) The company has not been declared willful defaulter by any debentures (fully, partially or optionally convertible) and bank or financial institution or government or government hence reporting on clause 3(x) (b) of the order is not authority or other lender. applicable. (c) As per the information and explanation provided to us, the (xi) (a) During the course of our examination of books and records term loans were applied for the purpose for which the loans of the company for the year, carried out in accordance were obtained. with the generally accepted auditing practices in India, we have neither come across any instances of fraud by the (d) On overall examination of the financial statements of the company or on the company by its officers or employees, Company, funds raised on short term basis have, prima nor any such case have been noticed or reported by the facie, not been utilized during the year for long term management during the year. purposes. (b) No report under sub-section (12) of section 143 of the (e) The Company has not taken any funds from any entity Companies Act has been filed by the auditors in Form ADT- or person on account of or to meet the obligations of its 4 as prescribed under rule 13 of Companies (Audit and subsidiaries, associates or joint ventures. Auditors) Rules, 2014 with the Central Government, during the year and upto the date of this report. (f) The company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures (c) As per the explanation and information provided to us, or associate companies and hence reporting under clause there were no whistle-blower complaints received by the company during the year. 217 Standalone Financial Statements (xii) In our opinion, the Company is not a Nidhi Company. Therefore, (xx) During the course of examination of books and records of the the provisions of clause 3 (xii) of the Order are not applicable to company, it was observed that there is no unspent amount lying the Company. with the Company with respect to Corporate Social Responsibility (CSR) in any projects, therefore clause (xx) of the order is not (xiii) In our opinion and as per the information and explanation given to applicable. The same has been disclosed in the notes to the us, all transactions with the related parties are in compliance with Financial Statements. section 177 and 188 of Companies Act, 2013 and the details of such transactions have been disclosed in the Notes to the Financial Statements as required by the applicable accounting For S.N. KAPUR & ASSOCIATES standards. Chartered Accountants Firm’s ICAI Reg. No. 001545C (xiv) (a) In our opinion, the company has an adequate internal audit Sd/- system which commensurate with the size and nature of its (CA. S. N. KAPUR) business. Partner (b) We have considered the reports of the Internal Auditors for M.No.: 014335 the period under audit, issued to the company during the Place: Lucknow year, in determining the nature, timing and extent of our Date: 13.05.2022 audit procedure. UDIN: 22014335AIYDBN8799 (xv) In our opinion and as per the information and explanations given by the management, the company has not entered into any non- cash transactions with directors or persons connected with them and hence the provisions of section 192 of the Companies Act 2013 are not applicable to the Company. (xvi) In our opinion, the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of clause 3 (xvi) of the Order are not applicable to the Company. (xvii) The company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. There has been no resignation of the Statutory Auditor of the (xviii) Company during the year. (xix) On the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, and our knowledge of the Board of Directors and Management plans, and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating that company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts upto the date of the audit report and we neither give any guarantee or any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. 218 Standalone Financial Statements ANNEXURE “B” FORMING PART OF THE INDEPENDENT AUDITORS’ REPORT Directions issued by the Comptroller & Auditor General of India in Term of Section 143(5) of the Companies Act, 2013 (Annexure-B referred to in paragraph 2 under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date) Sl. Directions Reply 1. Whether the Company has system in place to process all the According to the information and explanation given to us and based accounting transactions through IT system? If yes, the implications on our audit all accounting transactions are routed through FMS of processing of accounting transactions outside IT system on the System implemented by the Company. integrity of the accounts along with the financial implications, if any, may be stated. 2. Whether there is any restructuring of an existing loan or cases of According to the information and explanation given to us and based waiver/write off of debts/loans/interest etc. made by a lender to the on our audit, there is no case of restructuring of an existing loan or company due to the company’s inability to repay the loan? If yes, case of waiver/ write off of debts/loan/interest etc. made by a lender the financial impact may be stated. to the company due to the company’s inability to repay the loan. Whether such cases are properly accounted for? 3. Whether funds received/receivable for specific schemes from Based on the audit procedures carried out and as per the information Central/State govt. or its agencies were properly accounted for/ and explanations given to us, the funds received/receivable for utilized as per its term and conditions? specific schemes from Central/State govt. or its agencies were properly accounted for/utilized as per the respective terms and List the cases of deviation. conditions. For S.N. KAPUR & ASSOCIATES Chartered Accountants Firm’s ICAI Reg. No. 001545C Sd/- (CA. S. N. KAPUR) Partner M.No.: 014335 Place: Lucknow Date: 13.05.2022 219 Standalone Financial Statements ANNEXURE “C” TO THE INDEPENDENT AUDITORS’ REPORT (Annexure-C referred to in paragraph 3(f) under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date) Report on the Internal Financial Controls under Clause(i) of sub Meaning of Internal Financial Controls over Financial Reporting section 3 of Section 143 of the Companies Act, 2013(“the Act”) A company’s internal financial control over financial reporting is We have audited the internal financial controls with reference to a process designed to provide reasonable assurance regarding financial reporting of THDC INDIA LTD.(“the Company”) as of 31st the reliability of financial reporting and the preparation of financial March, 2022 in conjunction with our audit of the Standalone IND AS statements for external purposes in accordance with generally Financial Statements of the Company for the year ended on that date. accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures that Management’s Responsibility for Internal Financial Controls (1) pertain to the maintenance of records that in reasonable detail, The Company’s management is responsible for establishing and accurately and fairly reflect the transactions and dispositions of maintaining internal financial controls based on the internal control over the assets of the company (2) provide reasonable assurance that financial reporting criteria established by the Company considering the transactions are recorded as necessary to permit preparation of essential components if internal control stated in the Guidance Note Standalone Financial Statements in accordance with generally accepted on Audit of Internal Financial Controls over Internal Financial Reporting accounting principles and that receipts expenditures of the company issued by the Institute of Chartered Accountants of India (“ICAI”). These are being made only in accordance with authorizations on management responsibilities include the design, implementation and maintenance of and directors of the company and (3) provide reasonable assurance adequate internal financial controls that were operating effectively for regarding prevention or timely detection of unauthorized acquisition, ensuring the orderly and efficient conduct of its business, including use, or disposition of the company’s assets that could have a material adherence to company’s policies, the safeguarding of its assets, effect on Standalone Financial Statements. the prevention and detection of frauds and errors, the accuracy and Inherent Limitations of Internal Controls over Financial Reporting completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, Because of the inherent limitations of internal financial controls over 2013. financial reporting including the possibility of collusion or improper management override of controls material misstatements due to error Auditor’s Responsibility or fraud may occur and not to be detected. Also, projections of any Our responsibility is to express an opinion on the Company’s internal evaluation of the internal financial controls over financial reporting to financial controls with reference to financial reporting based on our future periods are subject to the risk that the internal financial control audit. We conducted our audit in accordance with the Guidance Note over financial reporting may become inadequate because of changes on Audit of Internal Financial Controls over Financial Reporting (the in conditions or that the degree of compliance with the policies or “Guidance Note”) and the Standards on Auditing, issued by ICAI and procedures may deteriorate. deemed to be prescribed under section 143(10) of the Companies Act Opinion 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both In our opinion, the company has in all material respects an adequate issued by the ICAI. Those Standards and the Guidance Note require that internal financial controls system over financial reporting and such we comply with ethical requirements and plan and perform the audit to internal financial controls over financial reporting were operating obtain reasonable assurance about whether adequate internal financial effectively as at 31st March 2022, based on the internal control over controls over financial reporting was established and maintained and if financial reporting criteria established by the Company considering the such controls operated effectively in all material respects. essential components of internal control stated in the Guidance Note on Audit of Internal Financial Reporting issued by the ICAI. 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 For S.N. KAPUR & ASSOCIATES an understanding of internal financial controls over financial reporting, Chartered Accountants assessing the risk that a material weakness exists, and testing and Firm’s ICAI Reg. No. 001545C evaluating the design and operating effectiveness of internal control Sd/- based on the assessed risk. The procedures selected depend on the (CA. S. N. KAPUR) auditor’s judgment, including the assessment of the risks of material Partner misstatement of the financial statements, whether due to fraud or error. M.No.: 014335 We believe that the audit evidence we have obtained is sufficient and Place: Lucknow appropriate to provide a basis for our audit opinion on the Company’s Date: 13.05.2022 internal financial controls system over financial reporting. 220 Standalone Financial Statements Compliance Certificate TO WHOMSOEVER IT MAY CONCERN We have conducted the audit of Standalone Financial Statements of M/s THDC India Limited for the year ended 31st March, 2022 in accordance with the directions/sub-directions issued by the C&AG of India under Section 143(5) of the Companies Act, 2013 and certify that we have complied with all the Directions/Sub-directions issued to us. For S.N. KAPUR & ASSOCIATES Chartered Accountants Firm’s ICAI Reg. No. 001545C Sd/- (CA. S. N. KAPUR) Partner M.No.: 014335 Place: Lucknow Date: 13.05.2022 The Director Office of the Principal Director of Commercial Audit & Ex-Officio, Member Audit Board –III, Office of CAG of India, New Delhi – 110 002 221 Standalone Financial Statements COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6) (b) OF THE COMPANIES ACT, 2013 ON THE STANDALONE FINANCIAL STATEMENTS OF THDC INDIA LIMITED FOR THE YEAR ENDED 31 MARCH 2022 The preparation of financial statements of THDC India Limited for the year ended 31 March 2022 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 auditor appointed by the Comptroller and Auditor General of India under section 139(5) of the Act is 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 13.05.2022. I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the financial statements of THDC India Limited for the year ended 31 March 2022 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 auditor and is limited primarily to inquiries of the statutory auditor and company personnel and a selective examination of some of the accounting records. Based on my supplementary audit, I would like to highlight the following significant matters under section 143(6)(b) of the Act which have come to my attention and which in my view are necessary for enabling a better understanding of the financial statements and the related audit report: Comment on Financial Position Balance Sheet Other Current Liabilities ` 87.59 crore (Note 29) Capital work-in-progress ` 9447.39 crore (Note 3) Para 10 and 23 of lnd AS 37 stipulated to recognize a liability based on the present obligation which also involves the probability of an outflow of resources embodying economic benefits to settle that obligation. The Company did not recognize the liability of ` 19.53 Crore as upfront amount, which the Company was required to deposit within 15 business days from the date of grant of mine opening permission from the Ministry of Coal, which was given to the Company on 15.02.2022. This resulted in understatement of both, Other Current Liabilities and Capital work-in-progress by ` 19.53 Crore each. For and on behalf of the Comptroller & Auditor General of India Sd/- Place: New Delhi (D.K. Sekar) Dated: 15.07.2022 Director General of Audit (Energy), Delhi 222 Standalone Financial Statements Management Explanation to Comment of the Comptroller and Auditor General of India under section 143 (6) (b) of The Companies Act ,2013 on the Standalone Financial Statements of THDC India Limited for the year ended 31st March 2022 C&AG Comment Management Explanation Comment on Standalone Financial Position It is to submit that the Coal Controller’s Organization, MoC had granted mine opening permission of Amelia Coal Mine on 15.02.2022 and District Mining Balance Sheet Officer, Singrauli informed vide letter dated 13.04.2022 that THDCIL has to Other Current Liabilities ` 87.59 crore (Note 29) deposit the Upfront amount in head “0853-00-102-0999 Concession, Fees, Rents& Royalties for Mining/Other Receipts” of MP Treasury. Considering Capital work-in-progress ` 9447.39 crore (Note 3) the fact that district mining officer has provided the details on 13.04.2022, i.e. during FY 2022-23 the liability for the same has not been provided. Para 10 and 23 of Ind AS 37 stipulated to recognize a liability based Since the Amelia coal mine is under development stage and all expenditure on the present obligation which also involves the probability of an incurred are carried forward as CWIP , therefore profitability of the Company outflow of resources embodying economic benefits to settle that is not affected. Further it is to submit that the amount under consideration obligation. is not material looking at the size of the Co. The Company did not recognize the liability of `19.53 crore as Further it is assured that in future, necessary care shall be taken to provide upfront amount, which the Company was required to deposit the liabilities in time. within 15 business days from the date of grant of mine opening permission from the Ministry of Coal, which was given to the Company on 15.02.2022. This resulted in understatement of both, Other Current Liabilities and Capital work-in-progress by `19.53 crore each. 223 Standalone Financial Statements CONSOLIDATED FINANCIAL STATEMENTS 2021-22 Financial Statement 2021-22 Independent Auditors’ Report Comments of the C&AG of India & Management Reply 224 Consolidated Financial Statements Consolidated BALANCE SHEET AS AT 31-March-2022 Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 ASSETS Non-Current Assets (a) Property, Plant and Equipment 2 6,343.91 6,562.04 (b) Right of Use Assets 2 461.53 410.83 (c) Other Intangible Assets 2 0.28 0.39 (d) Capital work-in- progress 3 9,467.50 6,420.71 (e) Investment in Subsidiary Co. 4 0.00 0.00 (f) Financial Assets    (i) Loans 5 36.12 39.24    (ii) Advances 6 0.00 36.12 0.01 39.25 (g) Deferred Tax Assets (Net) 7 836.80 871.39 (h) Non Current Tax Assets Net 8 43.22 32.49 (i) Other Non-Current Assets 9 2,042.24 1,906.22    Current Assets    (a) Inventories 10 40.94 34.94    (b) Financial Assets         (i) Trade Receivables 11 723.72 1,162.03         (ii) Cash and Cash Equivalents 12 90.33 232.30         (iii) Loans 13 9.59 9.43         (iv) Advances 14 6.78 6.77         (v) Others 15 849.21 1,679.63 746.57 2,157.10    (c) Current Tax Assets (Net) 16 60.83 60.81    (d) Other Current Assets 17 42.84 54.35    Regulatory Deferral Account Debit Balance 18 98.69 169.72    Total 21,154.53 18,720.24    EQUITY AND LIABILITIES    Equity    (a) Equity Share Capital 19 3,665.88 3,665.88     (b) Other Equity 20 6,639.31 6,251.36 Total equity attributable to the 10,305.19 9,917.24 owners of the parent Non-controlling interests 4.87 2.53  Total Equity 10,310.06 9,919.77 225 Consolidated Financial Statements Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021   Non-Current Liabilities   (a) Financial Liabilities (i) Borrowings 21 6,653.98 5,014.22 (ia) Lease Liabilities 22 77.77 9.47 (ii) Non current Financial Liabilities 23 162.40 6,894.15 28.11 5,051.80  b) Other Non Current Liabilities 24 816.73 796.53 (c) Provisions 25 176.46 190.37    Current Liabilities  (a) Financial Liabilities (i) Borrowings 26 1,352.73 1,233.51   (ia) Lease Liabilities 27 7.91 4.13 (ii) Trade Payables A. Total outstanding dues of micro enterprises 0.60 0.42 and small enterprises B. Total outstanding dues of creditors other than 27.34 24.65 micro enterprises and small enterprises    (iii) Others 28 616.96 2,005.54 464.15 1,726.86  (b) Other Current Liabilites 29 87.75 143.03  (c) Provisions 30 348.64 341.65  (d) Current Tax Liabilities (Net) 31 0.00 0.00  Regulatory Deferral Account Credit Balance 32 515.20 550.23 TOTAL 21,154.53 18,720.24 Significant Accounting Policies 1 Disclosures on Financial Instruments 42 and Risk Management Other Explanatory Notes to Accounts 43 Note 1 to 43 form integral part of the Accounts For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 226 Consolidated Financial Statements Consolidated STATEMENT OF PROFIT & LOSS FOR THE PERIOD ENDED 31-March-2022 Amount in Crore ` Particulars Note No. For the Period For the Period Ended 31-Mar-2022 Ended 31-Mar-2021 INCOME Revenue from Continuing Operations 33 1,921.49 1,796.01    Other Income 34 305.95 705.99    Deferred Revenue on account of Irrigation Component 16.24 18.80    Less: Depreciation on Irrigation Component 2 16.24 0.00 18.80 0.00 Total Income 2,227.44 2,502.00 EXPENSES        Employee Benefits Expense 35 355.65 388.77        Finance Costs 36 134.11 181.93        Depreciation & Amortisation 2 302.65 317.33        Generation Administration and Other Expenses 37 287.09 230.75 Provision for Bad & Doubtful Debts, CWIP and Stores 38 0.00 0.25 & Spares Total Expenses 1,079.50 1,119.03 Profit Before Regulatory Deferral Account Balances, 1,147.94 1,382.97 Exceptional Items and Tax Exceptional Items- (Income)/ Expenses- Net 0.00 35.65 Profit Before Tax and Regulatory Deferral Account 1,147.94 1,347.32 Balances    Tax Expenses    Current Tax    Income Tax 39 189.34 229.6 Deferred tax- (Asset)/ Liability 35.14 68.4 Profit For The Period before regulatory deferral 923.46 1,049.32 account balances Net Movement in Regulatory Deferral Account Balance 40 (29.72) 42.83 Income/ (Expense)- Net of Tax I Profit For The Period from continuing operations 893.74 1,092.15 II OTHER COMPREHENSIVE INCOME (i) Items that will not be classified to Profit or Loss: Re-measurements of the Defined Benefit Plans 41 1.59 0.23 Deferred tax on Re-measurements of the Defined Benefit 0.55 0.08 Plans- Deferred Tax Asset/ (Liability) 227 Consolidated Financial Statements Particulars Note No. For the Period For the Period Ended 31-Mar-2022 Ended 31-Mar-2021 Other Comprehensive Income 2.14 0.31 Total Comprehensive Income (I+II) 895.88 1,092.46 Profit attributable to : Owners of the parent 894.01 1,092.22 Non-controlling interests (0.27) (0.07)  Total 893.74 1,092.15  Other Comprehensive Inocme attributable to :    Owners of the parent 2.14 0.31    Total 2.14 0.31    Total Comprehensive Inocme attributable to :      Owners of the parent 896.15 1,092.53      Non-controlling interests (0.27) (0.07) Total 895.88 1,092.46 Earning per Equity Share (including net movement in regulatory deferral account)        Basic (`) 243.88 297.94        Diluted (`) 243.88 297.94    Earning per Equity Share (excluding net movement in regulatory deferral account)        Basic (`) 251.98 286.26        Diluted (`) 251.98 286.26    Significant Accounting Policies 1 Disclosures on Financial Instruments and Risk 42 Management Other Explanatory Notes to Accounts 43 Note 1 to 43 form integral part of the Accounts For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 228 Consolidated Financial Statements Consolidated STATEMENT OF CASH FLOW FOR THE YEAR ENDED 31-March-2022 Amount in Crore ` (Figures In Parenthesis Represent Deduction) PARTICULARS For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 A. CASH FLOW FROM OPERATING ACTIVITIES Profit Before Exceptional items and Tax 1,147.94 1,382.97 Adjustments for:- Depreciation 302.65 317.33 Depreciation- Irrigation Component 16.24 18.80 Provisions -        0.25 Advance Against Depreciation (7.60) (7.60) Late Payment Surcharge (225.46) (660.94) Finance Cost 134.11 181.93 (Profit)/ Loss on Sale of Assets 0.33 0.23 Other Comprehensive Income (OCI) 1.59 0.23 Prior Period Adjustments through SOCIE -        -        Net Movement in Regulatory Deferal Account Balance 29.72 (42.83) Exceptional Items 0.00 (35.65) Tax on Net Movement in Regulatory Deferal 6.29 257.87 (9.07) (237.32) Account Balance Cash Flow from Operating profit activities Before 1,405.81 1,145.65 Working Capital Changes Adjustment For :- Inventories (6.00) (2.77) Trade Receivables (including unbilled revenue) 335.67 713.26 Other Assets 12.01 7.57 Loans and Advances ( Current + Non Current) (8.08) (9.80) Minority Interest 0.27 0.07 Trade Payable and Liabilities 261.98 210.08 Provisions (Current + Non Current) (6.92) 61.70 Net Movement in Regulatory Deferal Account Balance (29.72) 559.21 42.83 1,022.94 Cash Flow From Operative Activities Before Taxes 1,965.02 2,168.59 Corporate Tax (189.34) (229.60) Net Cash From Operations (A) 1,775.68 1,938.99 B. CASH FLOW FROM INVESTING ACTIVITIES Change in:- Property, Plant & Equipment and CWIP (3,197.85) (1,767.41) 229 Consolidated Financial Statements Profit/ (Loss) on sale of Assets (0.33) (0.23) Capital Advances (136.52) (327.16) Net Cash Flow From Investing Activities (B) (3,334.70) (2,094.80) C. CASH FLOW FROM FINANCING ACTIVITIES            Share Capital (Including Pending Allotment) -        -                   Borrowings- Non Current 1,639.76 1,067.52            Borrowings- Current (806.88) 243.36            Lease Liability 72.08 (2.28)            Interest and Finance Charges (134.11) (181.93)            Grants 0.50 -                   Late Payment Surcharge 225.46 660.94            Capital Contribution from Non Controlling Interest 2.34 2.53            Dividend & Tax on Dividend (508.2) (707.75) Net Cash Flow From Financing Activities (C) 490.95 1,082.39 D. NET CASH FLOW DURING THE YEAR (A+B+C) (1,068.07) 926.58 E. OPENING CASH & CASH EQUIVALENTS 232.3 (694.28) F. CLOSING CASH & CASH EQUIVALENTS(D+E) (835.77) 232.30 Note: 1. Previous year’s figures have been Regrouped / Rearranged / Recast wherever necessary. 2. Reconcilation of Cash & cash Equivalents has been made in Note No 43.28 (a) For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 230 STATEMENT OF CHANGES IN EQUITY A. Equity Share Capital (1) Current Reporting Period Ended 31-March-2022 Amount in Crore ` Particulars Note No. As at 31-Mar-2022 Consolidated Financial Statements Amount    Balance at the beginning of reporting period 3,665.88    Changes in equity share capital during the period 0.00    Closing Balance at the end of the reporting period 3,665.88 (2) Previous Reporting Period Ended 31-March-2021 Amount in Crore ` Particulars Note No. As at 31-Mar-2021 Amount  Balance at the beginning of reporting period 3,665.88  Changes in equity share capital during the period 0.00  Closing Balance at the end of the reporting period 3,665.88 B. Other Equity- (1) Current Reporting Period Ended 31-March-2022 Amount in Crore ` Particulars Note Share Reserve & Surplus Other No. Application 01-Apr-2021 To Comprehensive Money 31-Mar-2022 Income Pending Retained Debenture Acturial Gain/ Total Non- Total Allottment Earnings Redemption (Loss) controlling Reserve & Others Interests Opening Balance (I) 0.00 6,189.50 79.50 (17.64) 6,251.36 2.53 6,253.89 Profit For The period 894.01 894.01 (0.27) 893.74 Other Comprehensive Income 2.14 2.14 2.14 Total Comprehensive Income 894.01 2.14 896.15 2.26 895.88 Equity Contribution by Non- 2.60 2.60 Controlling Interest 231 Dividend 508.20 508.20 508.20 Tax On Dividend 0.00 0.00 0.00 Particulars Note Share Reserve & Surplus Other 232 No. Application 01-Apr-2021 To Comprehensive Money 31-Mar-2022 Income Pending Allottment Retained Debenture Acturial Gain/ Total Non- Total Earnings Redemption (Loss) controlling Reserve & Others Interests Transfer to Retained Earnings (II) 385.81 387.95 390.28 Transferred/ Adjustment to/from (48.50) (48.50) (48.5) Debenture Redemption Resreve (III) Debenture Redemption Reserve 48.50 48.50 48.50 Addition/ (Utilised/ Adjusted) during the period (IV) Share Capital Pending Allotment 0.00 0.00 0.00 Deposited during the period (VI) Closing Balance (I+II+III+IV) 0.00 6,526.81 128.00 (15.50) 6,639.31 4.86 6,644.17 For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 Consolidated Financial Statements (2) Previous Reporting Period Ended 31-March-2021 Amount in Crore ` Particulars Note Share Application Reserve & Surplus Other Comprehensive No. Money Pending 01-Apr-2020 To Income Allottment 31-Mar-2021 Retained Debenture Acturial Gain/ Total Non- Total Earnings Redemption (Loss) controlling Reserve & Others Interests Consolidated Financial Statements Opening Balance (I) 0.00 5,845.53 39.00 (17.95) 5,866.58 0.00 5,866.58 Profit For The Year 1,092.22 1,092.22 (0.07) 1,092.15 Other Comprehensive Income 0.31 0.31 0.31 Total Comprehensive Income 1,092.22 0.31 1,092.53 (0.07) 1,092.46 Equity Contribution by Non- 2.60 2.60 Controlling Interest Dividend 707.75 707.75 707.75 Tax On Dividend 0.00 0.00 0.00 Transfer to Retained Earnings (II) 384.47 384.78 387.31 Transferred to Debenture Redemption (40.50) (40.5) (40.50) Resreve (III) Debenture Redemption Reserve 40.50 40.5 40.50 Addition/ (Utilised) during the year (IV) Share Capital Pending Allotment 0.00 0.00 0.00 Deposited/ (Allotted) during the Year (V) (Net) Closing Balance (I+II+III+IV+V) 0.00 6,189.50 79.50 (17.64) 6,251.36 2.53 6,253.89 For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) 233 Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 Consolidated Financial Statements Note -1 Company Information and Significant Accounting Policies A. Group Information and Significant Accounting 2. Basis of consolidation Policies The financial statements of subsidiary company is drawn up THDC Limited (the ‘Company’ or ‘Parent Company’) is a to the same reporting date as of the Company for the purpose Company domiciled in India and limited by shares (CIN: of consolidation. U45203UR1988GOI009822) and is a Subsidiary of NTPC Subsidiary Limited. The shares of the Company are held by NTPC Limited (74.496%) and Government of Uttar Pradesh (25.504%). The Subsidiarityis entity over which the Group has control. The Bonds of the Company are listed on National Stock Exchange Group controls an entity when the Group is exposed to, or has of India Limited (NSE) and BSE Limited in India. The address rights to, variable returns from its involvement with the entity of the Company’s registered office is Bhagirathi Bhawan and has the ability to affect those returns through its power to (Top Terrace) Bhagirathipuram, Tehri, Tehri Garhwal-249001, direct the relevant activities of the investee. Subsidiary is fully Uttarakhand. The Group is primarily involved in the generation consolidated from the date on which control is acquired by and sale of bulk power to State Power Utilities. Other business the Group and are continued to be consolidated until the date includes providing consultancy services. that such control ceases. B. Basis of preparation The Group combines the financial statements of the parent and its subsidiary line by line adding together like items of 1.1 These Consolidated financial statements have been prepared assets, liabilities, equity, income and expenses. Intercompany on going concern basis following accrual system of transactions, balances and unrealized gains on transactions accounting and comply with the Indian Accounting Standards between Group companies are eliminated. Unrealized (Ind AS) prescribed under Section 133 of the Companies Act, losses are also eliminated unless the transaction provides 2013 read with the Companies (Indian Accounting Standards) evidence of an impairment of the transferred asset. When Rules, 2015 as amended, and other provisions of the necessary, adjustments are made to the financial statements Companies Act, 2013 (to the extent notified and applicable) of subsidiaries to bring their accounting policies in line with and the provisions of the Electricity Act, 2003 to the extent Group’s accounting policies. applicable. Non-controlling interests (NCI) in the results and equity of These Consolidated financial statements were authorized subsidiary is shown separately in the consolidated statement for issue by the Board of Directors on in its meeting held on of profit and loss, consolidated statement of changes in equity 13.05.2022. and consolidated balance sheet respectively. 1.2 These Consolidated financial statements are presented in Changes in the Group’s equity interest in a subsidiary that Indian Rupees (INR), which is the Company’s functional do not result in a loss of control are accounted for as equity currency. All financial information presented in INR been transactions. rounded to the nearest crore (up to two decimals), except when indicated otherwise. When the Group loses control over a subsidiary, it derecognizes the assets and liabilities of the subsidiary, and C. Significant Accounting Policies any related NCI and other components of equity. Any interest retained in the former subsidiary is measured at fair value 1. Estimates & Assumptions at the date the control is lost. Any resulting gain or loss is recognized in statement of profit and loss. All amounts The preparation of financial statements requires estimates previously recognized in other comprehensive income in and assumptions that affect the reported amount of assets, relation to that subsidiary are accounted for as if the Group liabilities, revenue and expenses during the reporting period. had directly disposed of the related assets and liabilities of the Although such estimates and assumptions are made on a subsidiary i.e. reclassified to consolidated statement of profit reasonable and prudent basis taking into account all available and loss or transferred to equity as specified by applicable Ind information, actual results could differ from these estimates AS. This fair value becomes the initial carrying amount for the and assumptions. Such differences are recognized in the year purposes of subsequently accounting for the retained interest in which the actual results are crystallized. as an associate, joint venture or financial asset. 234 Consolidated Financial Statements 3. Property Plant & Equipment (PPE) Cost of land acquired through SLAO is capitalized on the basis of compensation paid through SLAO or directly by the 3.1 Property, Plant and Equipment (PPE) up to March 31, 2015 Company. were carried in the Balance Sheet in accordance with Indian GAAP . The Company has elected to avail exemption as granted Payments made/liabilities created provisionally towards by the Ind AS 101- First time adoption of Ind AS to regard compensation, rehabilitation of the outsees and other these amounts as deemed cost at the date of the transition to expenses relatable to land in possession are treated as cost Ind AS (i.e. as on April 1, 2015) for the purpose of fair value of land. as prescribed in the Ind AS. 4. Capital work in progress 3.2 PPE are initially measured at cost of acquisition/ construction including decommissioning or restoration cost wherever 4.1 Expenditure incurred on assets under construction (including required. Assets and systems common to more than one a project) is carried at cost under Capital work in Progress. generating unit are capitalized on the basis of engineering Such costs comprise purchase price of asset including import estimates/ assessments. The cost includes expenditure duties, non-refundable taxes (after deducting trade discounts that is directly attributable to the acquisition/construction and rebates) and costs that are directly attributable to bring of the asset. In cases where final settlement of bills with the asset to the location and condition necessary for it to be contractors is pending, but the asset is complete and ready capable of operating in the manner intended by management. for use, capitalization is done on provisional basis subject to necessary adjustments, in the year of final settlement. 4.2 Cost incurred towards lease amount and rent on right-of-use land and compensation for land and properties etc. used for 3.3 Spares parts, stand-by equipment and servicing equipment submergence and other purposes (such as re-settlement meeting the recognition criteria are capitalized. The carrying of oustees, construction of new Township, afforestation, amount of those spare parts that are replaced is derecognized expenses on maintenance and other facilities in there- when no future economic benefits are expected from their settlement colonies until takeover of the same by the local use or upon disposal. Other spare parts are carried as authorities etc.) and where construction of such alternative inventory and recognized in the statement of profit and loss facilities is a specific pre-condition for the acquisition of the on consumption. land for the purpose of the project, is carried forward in the Capital Work in Progress (Rehabilitation). The said asset is 3.4 Expenditure on major inspection and overhauls of generating capitalized as Land under submergence from the date of unit is capitalized, when it meets the asset recognition criteria. commercial operation. Any remaining carrying amount of the cost of the previous inspection and overhaul is derecognized. 4.3 Deposit works are accounted for on the basis of statements of account received from the Agencies concerned. If the cost of the replaced part or earlier major inspection / overhaul is not available, the estimated cost of similar new 4.4 In respect of supply-cum-erection contracts, the value parts/major inspection /overhaul is used as an indication of supplies received at site is treated as Capital-Work-in- to arrive at cost of the existing part/inspection /overhaul Progress. component at the time it was acquired or inspection carried out. 4.5 Claims for price variation in case of contracts are accounted for on acceptance. 3.5 An item of PPE is derecognized upon disposal or when no future economic benefits are expected from its use or 4.6 Cost directly attributable to projects under construction disposal. Any gain or loss arising on de-recognition of the include costs of employee benefits, expenditure in relation to asset (calculated as the difference between the net disposal survey and investigation activities of the projects, cost of site proceeds and the carrying amount of the asset) is included preparation, initial delivery and handling charges, installation in the Statement of Profit and Loss for the year in which the and assembly costs, professional fees, depreciation on assets asset is derecognized. used in construction of project, and other costs attributable to construction of projects. Such costs are allocated on 3.6 PPE created on land not belonging to the Company, but under systematic basis over Construction projects/Capital Work in the control and possession of the Company, are included in Progress. PPE. 5. Development expenditure on coalmines 3.7 In respect of land acquired through Special Land Acquisition Officer (SLAO)/on right to use, those portions of land are 5.1 Once proved reserves are determined and development capitalized which are utilized/intended to be utilized for of mines/project is sanctioned, exploration and evaluation construction of buildings and infrastructural facilities of assets are transferred to ‘Development of coal mines’ under the Company. Other lands acquired including lands under Capital work-in progress. submergence are accounted for as per their use. 235 Consolidated Financial Statements Subsequent expenditure is capitalized only where it either amount and timing of future cash spending for the required enhances the economic benefits of the development/ work and provided for as per approved mine closure plan. producing asset or replaces part of the existing development/ The estimate of expenses is escalated for inflation and then producing asset. Any remaining costs associated with the discounted at a pre-tax discount rate that reflects current part replaced are expensed. market assessment of the time value of money and risk, such that the amount of provision reflects the present value The development expenditure capitalized is net of value of of expenditure required to settle the obligation. The Company coal extracted during development phase. recognizes a corresponding asset under property, plant and equipment as a separate item for the cost associated with Date of commercial operation of integrated coal mines such obligation. On being brought to revenue, the mines shall be determined on the occurring of earliest of following closure, site restoration and decommissioning obligations are milestones as provided in CERC tariff regulations: amortized on straight line method over the balance life of the mine. 1) The first date of the year succeeding the year in which 25% of the peak rated capacity as per the mining plan is The value of the obligation is progressively increased over achieved; or time as the effect of discounting unwinds and the same is recognized as finance costs. 2) The first date of the year succeeding the year in which the value of production exceeds the total expenditure in Further, a specific escrow account is maintained for this that year; or purpose as per approved mine closure plan. The progressive mine closure expenses incurred on year to year basis, 3) The date of two years from the date of commencement forming part of the total mine closure obligation, are initially of production; recognized as receivable from escrow account and thereafter On the date of commercial operation, the assets under capital adjusted with the obligation in the year in which the amount work-in-progress are classified as a component of property, is withdrawn from escrow account after concurrence of the plant and equipment under ‘Mining property’. certifying agency. Gains and losses on de-recognition of assets referred above, 6. Intangible Assets are determined as the difference between the net disposal 6.1 Upto March 31, 2015, Intangible assets were carried in the proceeds, if any, and the carrying amount of respective Balance Sheet in accordance with Indian GAAP . The Company assets and are recognized in the statement of profit and loss. has elected to avail the exemption granted under Ind AS 101, 5.2 Stripping activity expense/adjustment “First time adoption of Ind AS” to regard those amounts as deemed cost at the date of the transition to Ind AS (i.e. as on Expenditure incurred on removal of mine waste materials April 1, 2015). (overburden) necessary to extract the coal reserves is referred to as stripping cost. The Company has to incur such 6.2 Intangible assets acquired separately are measured on initial expenses over the life of the mine as technically estimated. recognition at cost. After initial recognition, intangible assets are carried at cost less any accumulated amortization and Cost of stripping is charged on technically evaluated average accumulated impairment losses. stripping ratio at each mine with due adjustment for stripping activity asset and ratio-variance account after the mines are 6.3 Software (not being an integral part of the related hardware) brought to revenue. acquired for internal use, is stated at cost of acquisition less accumulated amortization and impairment losses if any. Net of the balances of stripping activity asset and ratio variance at the Balance Sheet date is shown as ‘Stripping 6.4 An item of Intangible asset is derecognized upon disposal or activity adjustment’ under the head ‘Non-current assets/ when no future economic benefits are expected from its use Non-current provisions’ as the case may be, and adjusted as or disposal. Gains or losses arising from de-recognition of an provided in the CERC Tariff Regulations intangible asset are recognized in the Statement of Profit and Loss of the year in when the asset is derecognized. 5.3 Mines closure, site restoration and decommissioning 7. Foreign Currency Transactions obligations 7.1 The Company has elected to avail the exemption available The Company’s obligations for land reclamation and under Ind AS 101, First time adoption of Ind AS with regard to decommissioning of structure consist of spending at mines continuation of policy for accounting of exchange differences in accordance with the guidelines from Ministry of Coal, arising from translation of long-term foreign currency Government of India. The Company estimates its obligations monetary liabilities. Accordingly, exchange differences arising for mine closure, site restoration and decommissioning based on settlement or translation of monetary items are recognized on the detailed calculation and technical assessment of the 236 Consolidated Financial Statements in the statement of profit and loss in the year in which it arises the Company becomes a party to the contractual provisions with the exception that exchange differences on long term of the instrument. monetary items related to acquisition of property, plant and equipment recognized up to 31 March 2016 are adjusted to 9.2 Financial assets of the Company comprise cash and cash the carrying cost of PPE. equivalents, Bank Balances, Advances to employees, security deposit, claims recoverable etc. 7.2 Transactions in foreign currency are initially recorded at exchange rate prevailing on the date of transaction. At 9.3 Based on existing business model of the company and the balance sheet date, foreign currency monetary items contractual cash flow characteristics of the financial assets, are reported using the closing rate. Non-monetary items classifications have been made as follows: denominated in foreign currency are reported at the exchange rate ruling at the date of transaction. 1.) Financial Assets at amortized cost, 8. Fair Value Measurement 2.) Financial Assets at fair value through other comprehensive income, and 8.1 Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between 3.) Financial Assets at fair value through Profit / Loss market participants at the measurement date. Normally at 9.4 Initial recognition and measurement:- All financial assets initial recognition, the transaction price is the best evidence except trade receivables are recognized initially at fair value of fair value. including the transaction costs that are attributable to the 8.2 However, when the Company determines that transaction acquisition of the financial asset. Transaction costs of financial price does not represent the fair value, it uses inter-alia assets carried at fair value through profit or loss are expensed valuation techniques that are appropriate in the circumstances in Statement of Profit and Loss. Where transaction price is not and for which sufficient data are available to measure fair the measure of fair value and fair value is determined using value, maximizing the use of relevant observable inputs and a valuation method that uses data from observable market, minimizing the use of unobservable inputs. the difference between transaction price and fair value is recognized in Statement of Profit and Loss and in other cases 8.3 All financial assets and financial liabilities for which fair value spread over life of the financial instrument using EIR (Effective is measured or disclosed in the financial statements are Interest Rate) method. EIR is calculated at the end of every categorized within the fair value hierarchy. This categorization reporting period. is based on the lowest level input that is significant to the fair value measurement as a whole: 9.5 The company measures the trade receivables at their transaction price as it does not contain a significant financing Level 1- Quoted (unadjusted) market prices in active markets component. for identical assets or liabilities. 9.6 Subsequent measurement:- After initial measurement, Level 2- Valuation techniques for which the lowest level input financial assets classified at amortized cost are subsequently that is significant to the fair value measurement is directly or measured at amortized cost using EIR method. Amortized indirectly observable. cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral Level 3- Valuation techniques for which the lowest level part of the EIR. The EIR amortization is included in finance input that is significant to the fair value measurement is income in the profit or loss. unobservable. 9.7 De-recognition:- A financial asset is derecognized when all 8.4 Financial assets and financial liabilities are recognized at fair the cash flows associated with the said financial asset has value on a recurring basis. The Company reviews the fair been realized or such rightshave expired. value techniques as to be adopted at the end of each reporting period and determines the fair value accordingly applying any 10. Cash and cash equivalents of the levels specified above deemed suitable. Cash and cash equivalents in the balance sheet comprise 9. Financial assets other than investment in subsidiaries cash at banks, cash on hand and short-term deposits with an and joint ventures original maturity of three months or less, which are subject to an insignificant risk of changes in value. 9.1 A financial asset includes inter-alia any asset that is cash, contractual obligation to receive cash or another financial 11. Inventories asset or to exchange financial asset or financial liability under condition that are potentially favorable to the Company. A 11.1 Inventories mainly comprise stores and spare parts to be financial asset is recognized under the circumstances when used for maintenance of Property, Plant and Equipments and are valued at costs or net realizable value (NRV) whichever is 237 Consolidated Financial Statements lower. The cost is determined using weighted average cost 12.5 De-recognition A financial liability is derecognized when the formula and NRV is the estimated selling price in the ordinary obligation under the liability is discharged or cancelled or course of business, less the selling costs necessary to make expires. the sale. 13. Government Grants 11.2 Carrying amount of inventory is assessed on each reporting date to reflect the same at NRV (Net Realizable Value). Incase 13.1 Grants-in-Aid received from the Central/State Government/ reduction of the carrying amount, suitable adjustment is made other authorities towards capital expenditure is treated initially by reducing the carrying amount of the inventory to recognize as non-operating deferred income under noncurrent liability at NRV and such amount reduced is also recognized as and subsequently adjusted as income in the same proportion expenses in the Statement of Profit and Loss. Subsequent to as the depreciation written off on the assets acquired out of reduction in the inventory value in case the NRV increases such contribution/grants-in-aid. (upto the original cost), value of inventory is enhanced to recognize at NRV and incremental amount is recognized as 14. Provisions, Contingent Liabilities and Contingent income in the Statement of Profit and Loss. All inventory Assets losses occur in natural course of business is recognized as expenses in the Statement of Profit and Loss. 14.1 Provisions are recognized when the Company has a present legal or constructive obligation as a result of a past event and it 12. Financial liabilities is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable 12.1 Financial liabilities of the Company are contractual obligation estimate can be made of the amount of the obligation. Such to deliver cash or another financial asset to another entity or provisions are determined based on management estimate to exchange financial assets or financial liabilities with another of the amount required to settle the obligation at the balance entity under conditions that are potentially unfavorable to the sheet date. Company. 14.2 Contingent liabilities are disclosed on the basis of judgment 12.2 The Company’s financial liabilities include loans & borrowings, of management/ independent experts. These are reviewed trade and other payables. at each balance sheet date and reflected in the financial statements using current estimates made by the management. 12.3 Classification, initial recognition and measurement 14.3 Contingent assets are disclosed in the financial statements 12.3.1 Financial liabilities are recognized initially at fair value minus when inflow of economic benefits is probable. transaction costs that are directly attributable to the issue of financial liabilities and subsequently measured at amortized 15. Revenue Recognition and Other Income cost. Difference arising if any, between the proceeds (net 15.1 Under Ind AS 115, revenue is recognized when the entity of transaction costs) and the fair value at initial recognition satisfies a performance obligation by transferring promised is recognized in the Statement of Profit and Loss or in the goods or services to a customer. An asset is transferred when “Expenditure Attributable to Construction” if another standard control is transferred that is either over time or at a point in permits inclusion of such cost in the carrying amount of an time. The company recognizes revenue in respect of amounts asset over the period of the borrowings using the effective to which it has a right to invoice. rate of interest. 15.2 Sale of energy is accounted for as per final tariff notified by 12.3.2 Borrowings are classified as current liabilities unless the Central Electricity Regulatory Commission (CERC). In case of company has an unconditional right to defer settlement of the Power Station where final tariff is not notified, recognition of liability for at least 12 months after the reporting period. revenue is based on the parameters and method provided in the applicable Regulations framed by the appropriate authority 12.4 Subsequent measurement i.e. CERC. The recognition of Revenue would be independent 12.4.1 After initial recognition, financial liabilities are subsequently of the Provisional Rate adopted for the purpose of collection measured at amortized cost using the EIR method. EIR is pending notification of ‘Annual Fixed Charges’ by CERC. calculated at the end of every reporting period Gains and Recovery/refund towards foreign currency variation in respect losses are recognized in Statement of Profit and Loss when of foreign currency loans are accounted for on year to year the liabilities are derecognized as well as through the EIR basis. amortization process. 15.3 Amount realized from sale of power as generated from 12.4.2 Amortized cost is calculated by taking into account any Wind Power Projects has been recognized as Revenue discount or premium on acquisition and fees or costs that are from operation in compliance with Ind AS 115 and Assets an integral part of the EIR. The EIR amortization is included as have been recognized as owned assets of the company in finance costs in the statement of profit and loss. compliance with Ind AS16. 238 Consolidated Financial Statements 15.4 Adjustments arising out of finalization of Regional Energy 16.6 Expenditure on CSR activities shall be made as per the Account (REA), which may not be material, are effected in the provisions of Section 135 of the Companies Act 2013. year of respective finalization. 16.7 Provision for doubtful debts / advances / claims outstanding 15.5 Incentive/disincentives are accounted for based on the over three years (except Government dues) is made unless applicable norms notified/approved by the Central Electricity the amount is considered recoverable as per management Regulatory Commission or agreements with the beneficiaries. estimate. However, Debts/advances/claims shall be written off In case of Power Stations where the same have not been on case to case basis when unreliability is finally established. notified / approved / agreed with beneficiaries, incentives/ disincentives are accounted for on provisional basis. 17. Employee benefits 15.6 Advance against depreciation being considered as deferred The company has established a separate Trust for 17.1 income up to 31 March 2009 is recognised as sales on administration of Provident Fund, employees defined straight line basis over balance useful life of 28 years after contribution superannuation scheme for providing pension completion of 12 years from the date of commercial operation and post retirement medical benefit. The company’s of the project, considering the total useful life of the project as contribution to the Funds is charged to expenditure. The 40 years. liability of the company in respect of shortfall (if any) in interest on investments made by PF Trust is ascertained and 15.7 Income from consultancy work is accounted for on the basis provided annually on actuarial valuation at the yearend. of actual progress/technical assessment of work executed or cost reimbursable in line with terms of respective consultancy 17.2 Liability for employee benefits in respect of gratuity, leave contracts. encashment and post retirement medical benefits, baggage allowance, financial package for dependent of deceased 15.8 Late Payment Surcharge recoverable from trade receivables employees etc. as defined in Ind AS-19 is accounted for on for sale of energy and liquidated damages/warranty claims accrual basis based on actuarial valuation determined as at are recognized when no significant uncertainty as to the year end. measurability or collectivity exists. 17.3 Re-measurements comprising of actuarial gains and losses, 15.9 Interest earned on advances to contractors as per the terms of the effect of the asset ceiling, excluding amounts included in contract, are reduced from the cost incurred on construction net interest on the net defined benefit liability and the return of the respective asset by credit to related Capital Work-in- on plan assets (excluding amounts included in net interest on Progress Account. the net defined benefit liability), are recognized immediately in the OCI in the period in which they occur. Re-measurements 15.10 Value of scrap is accounted for at the time of sale. are not reclassified to profit or loss in subsequent periods. 15.11 Insurance claims for loss of profit are accounted for in the 18. Borrowing Cost year of acceptance. Other insurance claims are accounted for based on certainty of realization. 18.1 Borrowing costs that are directly attributable to the acquisition, construction / exploration / development or erection of 16. Expenditure qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready for their 16.1 Prepaid expenses of ` 5,00,000/- or below in each case, are intended use. Qualifying assets are assets which necessarily accounted for in their natural heads of accounts. take substantial period of time to get ready for their intended use or sale. 16.2 Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods 18.2 When the Company borrows funds specifically for the purpose presented in which error occurred. If the error occurred of obtaining a qualifying asset, the borrowing costs incurred before the earliest period presented, opening balances of are capitalized. When Company borrows funds generally and assets, liabilities and equity for the earliest period presented, uses them for the purpose of obtaining a qualifying asset, are restated. the capitalization of the borrowing costs is computed based on the weighted average cost of all borrowings that are 16.3 Net income/expenditure prior to Commercial operation is outstanding during the period and used for the acquisition, adjusted directly in the cost of related assets and systems. construction/exploration or erection of the qualifying asset. 16.4 Preliminary expenses on account of new projects incurred However, borrowing costs applicable to borrowings made prior to approval of feasibility report are charged to revenue. specifically for the purpose of obtaining a qualifying asset, are excluded from this calculation, until substantially all the 16.5 Expenditure on R & D are incurred as per approved R & D Plan activities necessary to prepare that asset for its intended use of the Company. or sale are complete. 239 Consolidated Financial Statements Such borrowing costs are apportioned on the average balance prior accounting periods is reversed if there is a change in the of capital work in progress for the year. Other borrowing costs estimate of the recoverable amount. are recognized as expenses in the period in which they are incurred. 21. Leases 19. Depreciation & Amortization 21.1 The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if 19.1 Depreciation on additions to /deductions from Property, Plant the contract conveys the right to control the use of an identified & Equipment during the year is charged on pro-rata basis asset for a period of time in exchange for consideration. To from / up to the date on which the asset is ready for use / assess whether a contract conveys the right to control the use disposal. of an identified asset, the Company assesses whether: 19.2 Depreciation is charged on straight-line method following (1) the contact involves the use of an identified asset the rates & useful life of the projects notified by the Central Electricity Regulatory Commission (CERC) for the purpose of (2) the Company has substantially all of the economic fixation of tariff. In case of addition and change in cost of asset benefits from use of the asset through the period of the due to increase/decrease in long-term liability on account lease and of exchange fluctuations, award of Courts, etc, revised (3) the Company has the right to direct the use of the asset. unamortized depreciable amount is provided prospectively over the residual useful life of the asset. At the date of commencement of the lease, the Company recognizes a right-of-use asset and a corresponding lease Further, the life of the projects for Solar and Wind Power liability for all lease arrangements in which it is a lessee, Plants which are not governed by CERC Tariff Regulations has except for: been considered as 25 years and the depreciation rates have been worked out accordingly a) leases with a term of twelve months or less (short-term leases) and 19.3 Laptops provided to employees under Laptop scheme for official purpose are being written off over a period of four b) low value leases. For these short-term and low value year with nil salvage value. The Depreciation on these items is leases, the Company recognizes the lease payments as charged @25% pa on straight line basis. an operating expense on a straight line basis over the term of the lease. 19.4 Temporary erections are depreciated fully (100%) in the year of acquisition /capitalization by retaining 1/- as WDV. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. Right-of 19.5 In respect of Assets costing up to ` 5000/- but more than use assets and lease liabilities include these options when it ` 1500/- (excluding immovable assets) 100% depreciation is is reasonably certain that they will be exercised. provided in the year of purchase. The right-of-use assets are initially recognized at cost, which 19.6 Low value items costing up to ` 1500/-, which are in the comprises the initial amount of the lease liability adjusted for nature of assets are not capitalized and charged to revenue any lease payments made at or prior to the commencement 19.7 Cost of Right-of-use Land is amortized over the lease period date of the lease plus any initial direct costs less any lease or life of related project, whichever is less. incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. 19.8 Cost of computer Software is recognized as intangible asset and amortized on straight line method over a period of legal Right-of-use assets are depreciated from the commencement right to use or 3 years, whichever is earlier. date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset, if the lease transfers 19.9 Spares parts procured along with the Plant & Machinery or ownership of the underlying asset by the end of lease term subsequently which are capitalized and added in the carrying or if the cost of right-of-use assets reflects that the purchase amount of such item are depreciated over the residual useful option will be exercised. Otherwise, Right-of-use assets are life of the related plant and machinery at the rates and depreciated/amortized from the commencement date on methodology notified by CERC. a straight-line basis over the shorter of the lease term and useful life of the underlying asset. 20. Impairment of non-financial assets other than inventories Right of use assets are evaluated for recoverability whenever events or changes in circumstances indicate 20.1 The asset is treated as impaired, when carrying cost of assets that their carrying amounts may not be recoverable. For exceeds its recoverable amount. An impaired loss is charged the purpose of impairment testing, the recoverable amount to Statement of Profit and Loss in the year in which an asset (i.e. the higher of the fair value less cost to sell and the value- is identified as impaired. The impairment loss recognized in in-use) is determined on an individual asset basis unless 240 Consolidated Financial Statements the asset does not generate cash flows that are largely follow from the manner in which the Company expects, at the independent of those from other assets. In such cases, the reporting date, to recover or settle the carrying amount of its recoverable amount is determined for the Cash Generating assets and liabilities. Unit (CGU) to which the asset belongs. 22.2.3 Deferred tax is recognized in the Statement of Profit and The lease liability is initially measured at amortized cost at Loss except to the extent that it relates to items recognized the present value of the future lease payments. The lease directly in other comprehensive income or equity, in which payments are discounted using the interest rate implicit in case it is recognized in other comprehensive income or the lease or, if not readily determinable, using the incremental equity. Deferred tax assets and liabilities are offset when borrowing rate. Lease liabilities are re-measured with a there is a legally enforceable right to offset current tax assets corresponding adjustment to the related right of use asset if against current tax liabilities, and when the deferred income the Company changes its assessment whether it will exercise tax assets and liabilities relate to income taxes levied by the an extension or a termination option. same taxation authority on either the taxable entity or different taxable entities where there is an intention to settle the 22. Income tax balances on a net basis. Income tax expense comprises of current and deferred tax. The deferred tax for the current period to the extent it Tax is recognized in the Statement of Profit and Loss, except forms part of current tax in the future years and affects the to the extent that it relates to items recognized directly in computation of return on equity (ROE), an element of tariff equity or other comprehensive income. In this case the tax is computation as per CERC Regulation is debited / credited to also recognized directly in equity or in other comprehensive regulatory deferral account balance. income. 22.2.4 When there is uncertainty regarding income tax treatments, 22.1 Current Income Tax the Company assesses whether a tax authority is likely to accept an uncertain tax treatment. If it concludes that the tax The current tax is based on taxable profit for the year under authority is unlikely to accept an uncertain tax treatment, the the Income Tax Act, 1961. The current income tax charge is effect of the uncertainty on taxable income, tax bases and calculated on the basis of the tax laws enacted or substantively unused tax losses and unused tax credits is recognized. The enacted at the balance sheet date in India where the Company effect of the uncertainty is recognized using the method that, operates and generates taxable income. in each case, best reflects the outcome of the uncertainty: the 22.2 Deferred Tax most likely outcome or the expected value. For each case, the Company evaluates whether to consider each uncertain tax 22.2.1Deferred tax is recognized based upon balance sheet treatment separately, or in conjunction with another or several approach. Differences between the carrying amounts of other uncertain tax treatments, based on the approach that assets and liabilities in the company’s financial statements best prefixes the resolution of uncertainty. and the corresponding tax bases used in the computation of taxable profit are accounted for using the balance sheet 23. Statement of Cash Flows method. Deferred tax liabilities are generally recognized for 23.1 Statement of cash flows is prepared in accordance with the all taxable temporary differences, and deferred tax assets are indirect method prescribed in the Ind AS 7. Cash and cash generally recognized for all deductible temporary differences, equivalents for the purpose of Statement of cash flows is unused tax losses and unused tax credits to the extent that it inclusive of cash on hand, deposits held at call with financial is probable that future taxable profits will be available against institutions, other short-term, highly liquid investments with which those deductible temporary differences, unused tax original maturities of three months or less that are readily losses and unused tax credits can be utilized. Such assets convertible to known amounts of cash and which are and liabilities are not recognized if the temporary difference subject to an insignificant risk of changes in value, and bank arises from the initial recognition of an asset or liability in the overdrafts. However, for Balance Sheet presentation, Bank instances where the transaction affects neither the taxable overdrafts are shown within borrowings in current liabilities profit or loss nor the accounting profit or loss. in the balance sheet. 22.2.2 The carrying amount of deferred tax assets is reviewed at 24. Current versus non-current classification each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available The Company presents assets and liabilities in the Balance against which the temporary differences can be utilized. Sheet based on current/non-current classification. Deferred tax assets and liabilities are measured at the tax 24.1 An asset is classified as current when it is: rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and • Expected to be realized or intended to be sold or tax laws) that have been enacted or substantively enacted consumed in the normal operating cycle by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would • Held primarily for the purpose of trading 241 Consolidated Financial Statements • Expected to be realised within twelve months after the 27. Dividends reporting period, or 27.1 Dividends and interim dividends payable to the Group’s • Cash or cash equivalent unless restricted from being shareholders are recognized as changes in equity in the exchanged or used to settle a liability for at least twelve period in which they are approved by the shareholders and months after the reporting period. the Board of Directors respectively. All other assets are classified as non-current. 28. Operating Segments 24.2 A liability is classified as current when it is 28.1 In accordance with Ind AS 108, the operating segments used to present segment information are identified on the basis of • Expected to be settled in the normal operating cycle internal reports used by the Group’s management to allocate • Held primarily for the purpose of trading resources to the segments and assess their performance. The Board of Directors is collectively the Group’s ‘Chief Operating • Due to be settled within twelve months after the reporting Decision Maker’ or ‘CODM’ within the meaning of Ind AS period, or 108. The indicators used for internal reporting purposes may • Having no unconditional right to defer the settlement evolve in connection with performance assessment measures of the liability for at least twelve months after the reporting put in place. period. Segment results that are reported to the CODM include All other liabilities are classified as non-current. items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items 24.3 Deferred tax assets and liabilities are classified as non- comprise mainly corporate expenses, finance costs, income current. tax expenses and corporate income. 25. Regulatory deferral account balances Revenue directly attributable to the segments is considered as segment revenue. Expenses directly attributable to the 25.1 Expense/Income recognized in the statement of Profit and Loss segments and common expenses allocated on a reasonable to the extent recoverable from or payable to the beneficiaries basis are considered as segment expenses. in subsequent periods as per CERC Tariff regulations are recognized as “Regulatory Deferral Account Balances”. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and 25.2 These Regulatory Deferral Account Balances are adjusted intangible assets other than goodwill. from the year in which the same become recoverable from or Segment assets comprise property, plant and equipment, payable to the beneficiaries. intangible assets, trade and other receivables, inventories and 25.3 Regulatory Deferral Account Balances are evaluated at each other assets that can be directly or reasonably allocated to balance sheet date to ensure that the underlying activities segments. For the purpose of segment reporting, property, meet the recognition criteria and it is probable that future plant and equipment have been allocated to segments based economic benefits associated with such balances will flow to on the extent of usage of assets for operations attributable the entity. If these criteria are not met, the Regulatory Deferral to the respective segments. Segment assets do not include Account Balances are derecognized. investments, income tax assets, capital work in progress, capital advances, corporate assets and other current assets 26. Earnings per share that cannot reasonably be allocated to segments. Basic earnings per equity share is computed by dividing the 26.1 Segment liabilities include all operating liabilities in respect of net profit or loss attributable to equity shareholders of the a segment and consist principally of trade and other payables, Company by the weighted average number of equity shares employee benefits and provisions. Segment liabilities do not outstanding during the financial year. Diluted earnings per include equity, income tax liabilities, loans and borrowings equity share is computed by dividing the net profit or loss and other liabilities and provisions that cannot reasonably be attributable to equity shareholders of the Company by the allocated to segments. weighted average number of equity shares considered for Electricity generation is the principal business activity of the deriving basic earnings per equity share and also the weighted Group. Project Management and Consultancy works do not average number of equity shares that could have been issued form a reportable segment as per the Ind AS-108- ‘Operating upon conversion of all dilutive potential equity shares. Segments’. The number of equity shares and potentially dilutive equity 29. Miscellaneous shares are adjusted retrospectively for all periods presented for any bonus shares issued during the financial year. Basic 29.1 Each material class of similar items is presented separately and diluted earnings per equity share are also computed using in the financial statements. Items of a dissimilar nature or the earnings amounts excluding the movements in regulatory function are presented separately unless they are immaterial. deferral account balances. 242 Note :-2 PROPERTY PLANT & EQUIPMENT & INTANGIBLE ASSETS AS AT 31-March-2022 Amount in Crore ` Particulars Gross Block Depreciation Net Block As at Addition Sales / As at As at 01- For The Sales/ As at As at As at 01-Apr-2021 During the Adjustment 31-Mar- Apr-2021 Period 01- Adjustment 31-Mar- 31-Mar- 31-Mar- Consolidated Financial Statements Period During the 2022 Apr-2021 During the 2022 2022 2021 Period To 31-Mar- Period 2022    A. Prpoerty Plant & Equipment    Other Assets 1. Land Free Hold 39.83 3.96 -        43.79 -        -        -        -        43.79 39.83 2. Land Under Submergence 1,698.23 25.13 (0.01) 1,723.35 708.48 39.39 -        747.87 975.48 989.75 3. Buildings 1,069.34 43.38 (1.14) 1,111.58 321.50 37.25 -        358.75 752.83 747.84 4. Building Temp. Structures 24.64 1.99 (0.08) 26.55 24.50 2.05 -        26.55 -        0.14 5. Road, Bridge & Culverts 186.68 4.01 -        190.69 51.71 7.46 -        59.17 131.52 134.97 6. Drainage, Sewerage & Water Supply 22.67 4.22 -        26.89 10.24 1.06 -        11.30 15.59 12.43 7. Construction Plant & Machinery 24.47 -        -        24.47 16.10 1.33 -        17.43 7.04 8.37 8. Generation Plant & Machinery 3,418.64 14.47 -        3,433.11 1,607.83 92.30 -        1,700.13 1,732.98 1,810.81 9. EDP Machines 19.30 4.55 (0.70) 23.15 13.48 2.70 (0.57) 15.61 7.54 5.82 10. Electrical Installations 46.55 1.21 (1.20) 46.56 11.55 1.26 -        12.81 33.75 35.00 11. Transmission Lines 32.21 -        (0.01) 32.20 17.44 1.37 -        18.81 13.39 14.77 12. Office & Other Equipment 69.87 4.95 (0.09) 74.73 52.30 3.94 (0.04) 56.20 18.53 17.57 13. Furniture & Fixtures 34.15 4.71 (0.27) 38.59 19.37 2.40 (0.19) 21.58 17.01 14.78 14. Vehicles 23.32 1.55 (1.12) 23.75 12.49 1.67 (0.67) 13.49 10.26 10.83 15. Railway Sidings 1.22 -        -        1.22 0.59 0.08 -        0.67 0.55 0.63 16. Hydraulic Works- Dam & Spillways 5,190.62 -        -        5,190.62 3,168.59 105.29 -        3,273.88 1,916.74 2,022.03 17.Hydraulic Works- Tunnel,Penstock, 1,606.20 0.12 (0.11) 1,606.21 909.73 29.57 -        939.30 666.91 696.47 Canals etc Sub Total 13,507.94 114.25 (4.73) 13,617.46 6,945.90 329.12 (1.47) 7,273.55 6,343.91 6,562.04 Figures For Previous Period 13,199.32 309.14 (0.52) 13,507.94 6,607.33 338.92 (0.35) 6,945.90 6,562.04 6,591.99 B. Intagible Assets 1. Intangible Assets-Software 5.13 0.09 -        5.22 4.74 0.20 -        4.94 0.28 0.39    Sub Total 5.13 0.09 -        5.22 4.74 0.20 -        4.94 0.28 0.39 243 Particulars Gross Block Depreciation Net Block 244 As at Addition Sales / As at As at 01- For The Sales/ As at As at As at 01-Apr-2021 During the Adjustment 31-Mar- Apr-2021 Period 01- Adjustment 31-Mar- 31-Mar- 31-Mar- Period During the 2022 Apr-2021 During the 2022 2022 2021 Period To 31-Mar- Period 2022 Figures For Previous Period 4.71 0.42 -        5.13 4.51 0.23 -        4.74 0.39 0.2    C. Right of Use Assets       1. Right of Use - Land 433.05 50.72 (49.04) 434.73 28.22 13.39 -        41.61 393.12 404.83       2. Right of Use - Coal Bearing Land -        60.60 -        60.60 -        1.04 -        1.04 59.56 -              3. Right of Use - Building 4.37 8.43 (3.35) 9.45 2.45 1.67 (2.94) 1.18 8.27 1.92       4. Right of Use - Vehicle 8.77 0.1 (0.15) 8.72 4.69 3.61 (0.16) 8.14 0.58 4.08 Sub Total 446.19 119.85 (52.54) 513.50 35.36 19.71 (3.10) 51.97 461.53 410.83 Figures For Previous Period 395.21 51.14 (0.16) 446.19 14.50 20.98 (0.12) 35.36 410.83 380.71 Detail of Depreciation Current Previous Year Year Depreciation transferred to EDC 30.14 24.00 Depreciation transferred to statement of P&L 302.65 317.33 349.03 360.13 Depreciation transferred to statement of P&L 16.24 18.80 -Irrigation Contribution from GOUP 0.14 0.16 Fixed Assets Costing More Than ` 1500.00 But Less Than ` 5000.00 Procured and Depreciated Fully During The Year 2.1 The Land measuring 14.37 acres transferred free of cost by Govt. of Uttarakhand for construction of Koteshwar Hydro Electric Project (4x100 MW) to the Company has been accounted for at notional value of ` 1/-. 2.2 The land under submergence has been amortised considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials. 2.3 Details regarding title deeds of the immovable properties not held in the name of the Company are disclosed vide Note No. 43.5 2.4 During the year the Company has not revalued any of it’s Property, Plant & Equipment and Intangible Assets. 2.5 The Comany is not holding any benami property. 2.6 Details regarding unauthorized occupants on the land owned by the Company is disclosed vide Note No.43.6 Consolidated Financial Statements Note :-2 PROPERTY PLANT & EQUIPMENT & INTANGIBLE ASSETS AS AT 31-March-2021 Amount in Crore ` Particulars Gross Block Depreciation Net Block Consolidated Financial Statements As at Addition Sales / As at 31- As at 01- For The Sales/ As at As at As at 31- 01-Apr-2020 During the Adjustment Mar-2021 Apr-2020 Period 01- Adjustment 31-Mar- 31-Mar- Mar-2020 Period During the Apr-2020 During the 2021 2021 Period To 31-Mar- Period 2021 A. Prpoerty Plant & Equipment Other Assets 1. Land Free Hold 38.25 1.58 -        39.83 -        -        -        -        39.83 38.25 2. Land Under Submergence 1,687.50 10.73 -        1,698.23 669.62 38.86 -        708.48 989.75 1,017.88 3. Buildings 1,049.38 19.96 -        1,069.34 287.09 34.41 -        321.50 747.84 762.29 4. Building Temp. Structures 24.39 0.25 -        24.64 24.39 0.11 -        24.50 0.14 -        5. Road, Bridge & Culverts 173.65 13.05 (0.02) 186.68 44.39 7.32 -        51.71 134.97 129.26 6. Drainage, Sewerage & Water Supply 22.35 0.32 -        22.67 9.14 1.10 -        10.24 12.43 13.21 7. Construction Plant & Machinery 24.46 0.01 -        24.47 14.70 1.40 -        16.10 8.37 9.76 8. Generation Plant & Machinery 3,177.93 240.73 (0.02) 3,418.64 1,501.82 106.01 -        1,607.83 1,810.81 1,676.11 9. EDP Machines 18.17 1.51 (0.38) 19.30 11.31 2.47 (0.30) 13.48 5.82 6.86 10. Electrical Installations 45.77 0.78 -        46.55 10.42 1.13 -        11.55 35.00 35.35 11. Transmission Lines 26.66 5.55 -        32.21 16.12 1.32 -        17.44 14.77 10.54 12. Office & Other Equipment 61.17 8.76 (0.06) 69.87 46.98 5.37 (0.05) 52.3 17.57 14.19 13. Furniture & Fixtures 29.07 5.12 (0.04) 34.15 16.61 2.76 -        19.37 14.78 12.46 14. Vehicles 22.53 0.79 -        23.32 10.77 1.72 -        12.49 10.83 11.76 15. Railway Sidings 1.22 -        -        1.22 0.52 0.07 -        0.59 0.63 0.70 16. Hydraulic Works- Dam & Spillways 5,190.62 -        -        5,190.62 3,063.29 105.3 -        3,168.59 2,022.03 2,127.33 17. Hydraulic Works-Tunnel,Penstock, 1,606.20 -        -        1,606.20 880.16 29.57 -        909.73 696.47 726.04 Canals etc    Sub Total 13,199.32 309.14 (0.52) 13,507.94 6,607.33 338.92 (0.35) 6,945.90 6,562.04 6,591.99 245 Particulars Gross Block Depreciation Net Block 246 As at Addition Sales / As at 31- As at 01-Apr- For The Sales/ As at As at As at 31- 01-Apr-2020 During the Adjustment Mar-2021 2020 Period 01- Adjustment 31-Mar- 31-Mar- Mar-2020 Period During the Apr-2020 During the 2021 2021 Period To 31-Mar- Period 2021 B. Intagible Assets 1. Intangible Assets-Software 4.71 0.42 -        5.13 4.51 0.23 -        4.74 0.39 0.20 Sub Total 4.71 0.42 -        5.13 4.51 0.23 -        4.74 0.39 0.20 C. Right of Use Assets     1. Right of Use - Land 384.01 49.04 -        433.05 12.45 15.77 -        28.22 404.83 371.56     1. Right of Use - Coal Bearing Land -        -        -        -        -        -        -        -        -        -            2. Right of Use - Building 3.85 0.59 (0.07) 4.37 1.21 1.27 (0.03) 2.45 1.92 2.64     3. Right of Use - Vehicle 7.35 1.51 (0.09) 8.77 0.84 3.94 (0.09) 4.69 4.08 6.51    Sub Total 395.21 51.14 (0.16) 446.19 14.50 20.98 (0.12) 35.36 410.83 380.71 Detail of Depreciation Previous -        Year Depreciation transferred to EDC 24.00 18.89 Depreciation transferred to statement of P&L 317.33 576.10 Depreciation transferred to statement of P&L 18.80 63.74 360.13 658.73 -Irrigation Contribution from GOUP Fixed Assets Costing More Than ` 1500.00 But Less Than ` 5000.00 Procured and Depreciated 0.16 0.21 Fully During The Year 2.1 The Land measuring 14.37 acres transferred free of cost by Govt. of Uttarakhand for construction of Koteshwar Hydro Electric Project (4x100 MW) to the Company has been accounted for at notional value of ` 1/-. 2.2 The land under submergence has been amortised considering the rate of depreciation provided by the CERC in the tariff regulations and the fact that it will not have any economic value due to deposit of silt and other foreign materials. 2.3 Details regarding title deeds of the immovable properties not held in the name of the Company are disclosed vide Note No. 43.5 2.4 During the year the Company has not revalued any of it’s Property, Plant & Equipment and Intangible Assets. 2.5 The Comany is not holding any benami property. 2.6 Details regarding unauthorized occupants on the land owned by the Company is disclosed vide Note No. 43.6 Consolidated Financial Statements Consolidated Financial Statements Note :-3 CAPITAL WORK IN PROGRESS & INTANGIBLE ASSETS UNDER DEVELOPMENT Amount in Crore ` For the Period Ended 31-Mar-2022 As at 31-Mar-2022 As at Addition During Adjustment Capitalisation Note The Period During the During The Particulars 01-Apr- No. 01-Apr-2021 To Period Period 2021 31-Mar-2022 01-Apr-2021 To 01-Apr-2021 To 31-Mar-2022 31-Mar-2022 A. Construction Work In Progress Building & Other Civil Works 135.63 34.74 (2.49) (44.14) 123.74 Roads, Bridges & Culverts 34.96 194.25 (2.90) (3.98) 222.33 Water Supply, Sewerage & Drainage 6.11 20.97 (0.17) (3.9) 23.01 Generation Plant And Machinery 2,429.18 2,036.88 (10.29) (14.25) 4,441.52 Hydraulic Works, Dam, Spillway, 3,318.69 520.27 (0.83) (0.12) 3,838.01 Water Channels, Weirs, Service Gate & Other Hydraulic Works Afforestation Catchment Area 88.00 18.77 -        -        106.77 Electrical Installation & Sub-Station 0.92 77.12 4.66 (0.59) 82.11 Equipments Other expenditure directly attributable to 149.17 85.01 (0.35) 0.00 233.83 project construction Development of Coal Mine 39.36 179.15 0.00 0.00 218.51 Others 2.95 4.57 -        (5.85) 1.67   Expenditure Pending Allocation Survey & Development Expenses 100.05 0.34 (21.08) -        79.31 Expenditure During Construction 32.1 75.24 307.83 383.07 Less: Expenditure During Construction 32.1 362.79 362.79 allocated/ charged to P&L Rehabilitation Rehabilitation Expenses 75.28 32.59 (6.29) (25.17) 76.41 Less: Provision for CWIP 34.83 0.00 (34.83) 0.00 0.00 Total 6,420.71 3,149.70 (4.91) (98.00) 9,467.50 Figures For Previous Period 4,989.80 1,721.00 (5.31) (284.78) 6,420.71 3.1 CWIP mainly constitutes value of ongoing projects under construction such as Tehri PSP, VPHEP & Khurja etc. as the construction work is under process, no impairment arises. 3.2 Ageing of CWIP has been disclosed vide Note No. 43.9 (i) 3.3 Completion shedule for projects overdue or cost overruns has been disclosed vide Note No. 43.9 (ii) 3.4 Provision against CWIP written off has been disclosed vide Note. No. 43.8 247 Consolidated Financial Statements Note :-4 NON CURRENT ASSETS- INVESTMENT IN SUBSIDIARY CO. Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Investment in Subsidiary 14.80 7.40 Co. TUSCO Less: Share Capital alloted by subsidiary 14.80 7.40    Co.-TUSCO TOTAL 0.00 0.00 Note :-5 NON CURRENT- FINANCIAL ASSETS- LOANS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Loans To Employees Considered Good- Secured 14.82 17.79 Considered Good- Unsecured 8.82 6.99 Interest Accrued On Loans To Employees Considered Good- Secured 21.01 23.04 Considered Good- Un secured 1.63 2.06 Total Loans to Employees 46.28 49.88 Less: Fair valuation Adjustment of 8.17 8.90 secured loans Less: Fair valuation Adjustment of 2.03 36.08 1.80 39.18 unsecured loans Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.03 0.05 Interest Accrued On Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.02 0.02 Total Loans to Directors 0.05 0.07 Less: Fair valuation Adjustment of 0.00 0.00 secured loans Less: Fair valuation Adjustment of 0.01 0.04 0.01 0.06 unsecured loans SUB-TOTAL 36.12 39.24 LESS:- Provision For Bad & 0.00 0.00 Doubtful Advances TOTAL - LOANS 36.12 39.24 248 Consolidated Financial Statements Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Note :- Due From Directors Principal 0.03 0.05 Interest 0.02 0.02 TOTAL 0.05 0.07 Less: Fair Valuation Adjustment 0.01 0.04 0.01 0.06 Note :- Due From Officers Principal 0.16 0.01 Interest 0.02 0.01 TOTAL 0.18 0.02 Less: Fair Valuation Adjustment 0.03 0.15 0.00 0.02 5.1 The Company has not granted any loans or advances to promoters, directors, KMP’s and the related parties that are repayble on demand or without specifying any terms or period of repayment. 5.2 The Comapny has not provided any loan to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-6 NON CURRENT- FINANCIAL ASSETS-ADVANCES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Advances Other Advances (Un Secured) (Advances Recoverable In Cash or In Kind or For Value To Be Received) To Employees 0.00 0.01 To Others 0.00 0.00 0.00 0.01 Deposits Other Deposit 0.00 0.00 0.00 0.00 TOTAL 0.00 0.01 6.1 The Comapny has not provided any advance to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-7 DEFERRED TAX ASSET Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Tax Asset 836.80 871.39        Total 836.80 871.39 249 Consolidated Financial Statements Note :-8 NON CURRENT TAX ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Tax Deposited 43.22 32.49 Total 43.22 32.49 Note :-9 OTHER NON CURRENT ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Employee Cost due to Fair 10.20 10.70  Valuation Sub Total 10.20 10.70 Capital Advances Unsecured i) Against Bank Guarantee 823.75 858.38 (Bank Guarantee of ` 903.75 Crore ) ii) Rehabilitation & Resettlement and 455.58 423.88 payment to various Government agencies iii) Others 654.06 579.26 iv) Accrued Interest On Advances 221.52 2,154.91 157.39 2,018.91 Less: Provision for Doubtful Advances 122.87 123.39 SUB TOTAL - CAPITAL ADVANCES 2,032.04 1,895.52 TOTAL 2,042.24 1,906.22 Note :-10 INVENTORIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Inventories (At Cost Determined On Weighted Average Basis or Net Realizable Value Whichever is Lower) Other Civil And Building Material 1.62 1.68 Mechanical and Electrical Stores & Spares 33.63 28.92 Others (including Stores & Spares) 3.77 4.44 Material Under Inspection (Valued At Cost) 1.92 40.94 0.17 35.21 Less: Provision For other stores 0.00 0.27 TOTAL 40.94 34.94 250 Consolidated Financial Statements Note :-11 TRADE RECEIVABLES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 (i) Debts Outstanding Over Six Months (Net) Unsecured, Considered Good 229.46 448.92 Credit Impaired 0.00 229.46 67.39 516.31 Less:- Provision For Bad And Doubtful Debts 0.00 67.39 (ii) Other Debts (Net) Unsecured, Considered Good 321.69 606.56 Credit Impaired 0.00 321.69 0.00 606.56 (iii) Unbilled Debtors 172.57 106.55 TOTAL 723.72 1,162.03 11.1 Agewise analysis of trade receivables has been disclosed vide Note No. 43.10 Note :-12 CASH AND CASH EQUIVALENTS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Cash & Cash Equivalents Balances With Banks (Including Auto sweep, 90.32 232.29 Deposit with Banks) Cheques,Drafts on hand 0.01 0.01 TOTAL 90.33 232.3 251 Consolidated Financial Statements Note :-13 CURRENT- FINANCIAL ASSETS- LOANS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Loans To Employees Considered Good- Secured 6.18 6.54 Considered Good- Unsecured 3.16 2.53 Interest Accrued On Loans To Employees Considered Good- Secured 1.99 1.87 Considered Good- Un secured 0.07 0.08 Total loan to Employees 11.40 11.02 Less: Fair valuation Adjustment of Secured 1.28 1.21 Loans Less: Fair valuation Adjustment of Unsecured 0.47 9.65 0.32 9.49 Loans Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.02 0.02 Interest Accrued On Loans To Directors Considered Good- Secured 0.00 0.00 Considered Good- Unsecured 0.00 0.00 Total loan to Directors 0.02 0.02 Less: Fair valuation Adjustment of Secured 0.00 0.00 Loans Less: Fair valuation Adjustment of Unsecured 0.00 0.02 0.00 0.02 Loans SUB-TOTAL 9.67 9.51 LESS:- Provision For Bad & Doubtful Advances 0.08 0.08 TOTAL LOANS 9.59 9.43 Note :- Due From Directors Principal 0.02 0.02 Interest 0.00 0.00 TOTAL 0.02 0.02 Less: fair Valuation Adjustment 0.00 0.02 0.00 0.02 Note :- Due From Officers Principal 0.04 0.00 Interest 0.00 0.00 TOTAL 0.04 0.00   Less: fair Valuation Adjustment 0.00 0.04 0.00 0.00 13.1 The Company has not granted any loans or advances to promoters, directors, KMP’s and the related parties that are repayble on demand or without specifying any terms or period of repayment. 13.2 The Comapny has not provided any loan to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. 252 Consolidated Financial Statements Note :-14 CURRENT- FINANCIAL ASSETS- ADVANCES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Other Advances (Un Secured) (Advances Recoverable In Cash or In Kind or For Value To Be Received) To Employees 6.44 6.42 To Others 0.34 6.78 0.35 6.77 TOTAL 6.78 6.77 14.1 The Comapny has not provided any advance to any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-15 CURRENT- FINANCIAL ASSETS- OTHERS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    Deposits    Security Deposit 15.19 14.65    Deposit with Govt/Court 480.16 480.88    Other Deposit 0.07 495.42 0.02 495.55    Others    Unbilled Revenue 353.79 251.02    TOTAL 849.21 746.57 15.1 Unbilled revenue includes balances of beneficiaries against pending tariff petition of ` 353.79 Crore (Recoverable ` 370.27 Crore and Payable `16.48 Crore) [Previous Period ` 251.02 Crore (Recoverable ` 267.50 Crore and Payable ` 16.48 Crore)]. Note :-16 CURRENT TAX ASSETS (NET) Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    Tax Deposited 60.83 60.81    TOTAL 60.83 60.81 253 Consolidated Financial Statements Note :-17 OTHER CURRENT ASSETS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Prepaid Expenses 31.12 42.44    Interest Accrued 0.03 0.04    BER Assets held for disposal 0.33 0.23    Deferred Employee Cost due to Fair Valuation 1.75 1.53       SUB-TOTAL 33.23 44.24    Other Advances (Un Secured)        To Employees 0.58 0.49        For Purchases 3.74 5.66        To Others 19.70 18.37     24.02 24.52        Less: Provision for Misc. Recoveries 14.41 14.41    SUB TOTAL -OTHER ADVANCES 9.61 10.11       TOTAL 42.84 54.35 Note :-18 REGULATORY DEFERRAL ACCOUNT DEBIT BALANCE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021    Opening Balance 169.72 186.22    Net movement during the period (71.03) (16.5)    Closing Balance 98.69 169.72 18.1 Regulatory deferral account debit balance is due to impact of pay arrears due to pay revision w.e.f. 01.01.2017 of ` 42.26 Crore, Exchange Rate Variation of ` 54.91 Crore and others of ` 1.52 Crore. 254 Consolidated Financial Statements Note :-19 SHARE CAPITAL Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of Amount Number of Amount Shares Shares Authorised Equity Shares of ` 1000/- each 4,00,00,000 4,000.00 4,00,00,000 4,000.00 Issued Subscribed & Paid-up 3,66,58,817 3,665.88 3,66,58,817 3,665.88 Equity Shares of ` 1000/- each fully paid up TOTAL 3,66,58,817 3,665.88 3,66,58,817 3,665.88 During the year, the Company has paid final dividend of ` 190.84 crore for the FY 2020-21 @ ` 52.06 (P.Y. ` 109.85) per equity share of par value ` 1000/- each. The Company has paid Interim Dividend of ` 317.36 crore during the year for the F.Y. 2021-22 and the Board of Directors of the Company has proposed a final dividend of ` 197.94 crore for the F.Y. 2021-22. Thus the total Dividend for the F.Y. 2021-22 comes to ` 515.30 crore @ ` 140.56 (P.Y. @ ` 135.27) per equity share of par value ` 1000/- each.This proposed dividend is subject to the approval of shareholders in the ensuing Annual General Meeting. Note :-19.1 DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% SHARES IN THE COMPANY Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of % Number of % Shares Shares Share holding more than 5%       I. NTPC Ltd. (Including Nominee Shares) 2,73,09,412 74.496 2,73,09,412 74.496       II. GOUP (Including Nominee Shares) 93,49,405 25.504 93,49,405 25.504    TOTAL 3,66,58,817 100 3,66,58,817 100 Note :-19.2 RECONCILIATION OF NO. OF SHARES & SHARE CAPITAL OUTSTANDING Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Number of Amount Number of Amount Shares Shares    Opening 3,66,58,817 3,665.88 3,66,58,817 3,665.88    Issued 0.00 0.00 0.00 0.00    Closing 3,66,58,817 3,665.88 3,66,58,817 3,665.88 19.2 A. The Company has only one class of shares having a par value of ` 1000/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time and are entitled to voting rights proportionate to their share holding at the meetings of shareholders. 255 Consolidated Financial Statements Note :-19.3 Shareholding of Promoters Amount in Crore ` Particulars Note No. As at 31-Mar-2022 Number % Number % % Change of Shares of Shares during the year (Opening) (Closing) I. NTPC Ltd. (Including 2,73,09,412 74.496 2,73,09,412 74.496 0.000 Nominee Shares) II. GOUP (Including 93,49,405 25.504 93,49,405 25.504 0.000 Nominee Shares)    TOTAL 3,66,58,817 100.000 3,66,58,817 100.000 Note :-20 OTHER EQUITY Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Share Application Money Pending Allottment 0.00 0.00 Retained Earnings 6,526.81 6,189.50 Debenture Redemption Reserve 128.00 79.50 Other Comprehensive Income (15.50) (17.64) TOTAL 6,639.31 6,251.36 20.1 In accordance with the applicable provisions of the Companies Act, 2013 read with rules and in line with MCA Notification No. G S R 574 (E) dated 15.08.2019, the Company has created Debenture Redemption Reserve out of profits of the Company @10% of the value of bonds on a prudent basis every year in equal installments till the year prior to the year of reemption of bonds for the purpose of reemption of bonds. Note :-21 NON CURRENT- FINANCIAL LIABILITIES- BORROWINGS Amount in Crore ` Particulars Note As at 31-Mar-2022 As at 31-Mar-2021 No. A. BONDS ^ BOND ISSUE SERIES-V- SECURED 7.39% p.a. 10 Years Secured Redeemable Non-Convertible Bonds of 1,253.21 0.00 ` 1000000/- each). (Date of redemption 25.08.2031) ^ BOND ISSUE SERIES-IV- SECURED 7.45% p.a. 10 Years Secured Redeemable Non- Convertible Bonds of 760.87 760.87 ` 1000000/- each). (Date of redemption 20.01.2031)    ***BOND ISSUE SERIES-III- SECURED 7.19% p.a. 10 Years Secured Redeemable Non- Convertible Bonds of 839.55 839.55 ` 1000000/- each). (Date of redemption 24.07.2030) **BOND ISSUE SERIES-II- SECURED (8.75% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 1,574.44 1,574.08 of ` 1000000/- each). (Date of redemption 05.09.2029) 256 Consolidated Financial Statements Amount in Crore ` Particulars Note As at 31-Mar-2022 As at 31-Mar-2021 No. *BOND ISSUE SERIES-I- SECURED (7.59% p.a. 10 Years Secured Redeemable Non- Convertible Bonds 622.33 622.46 of ` 1000000/- each). (Date of redemption 03.10.2026)    TOTAL (A) 5,050.40 3,796.96 B. SECURED Term Loan from Financial Institutions ****POWER FINANCE CORPORATION Ltd. (PFC)-78302003 (For Tehri HPP) (Repayable within 15 years on Quarterly installment from 15th october 138.17 230.27 2008 to 15th July 2023, presently carrying floating interest rate @9.75%) #POWER FINANCE CORPORATION Ltd. (PFC) -78302002 (For KHEP) (Repayable within 10 years on Quarterly installment from 15th January 0.00 89.53 2012 to 15th october 2021, presently carrying floating interest rate @9.75%) #Rural Electrification Corporation Ltd. (REC) (For KHEP) (UA-GE-PSU-033-2010-3754) (Repayable within 10 years on Quarterly installment from 30th 17.52 87.62 September 2012 to 30 June 2022, presently carrying floating interest rate @ 10.10%)  ****Rural Electrification Corporation Ltd. (REC)-330001- (For Tehri HPP) (Repayable within 15 years on Quarterly installment from September 0.00 95.21 2007 to March 2022, presently carrying floating interest rate @ 10.10%) @Punjab National Bank (For PSP) PNB (Repayable within 5 years on Quarterly Installments from 281.38 422.66 30.06.2019 to 31.03.2024 Carrying Floating Interest rate @ 3 month MCLR presently 6.75%) @@Bank of Baroda Bank of Baroda (Repayment shall be first 20 quarterly installment 800.15 0.00 of 1.25%, next 20 quarterly installment of 3.75% Carrying Floating Interest rate @ 1 month MCLR presently 6.9%) TOTAL (B) 1,237.22 925.29 257 Consolidated Financial Statements Amount in Crore ` Particulars Note As at 31-Mar-2022 As at 31-Mar-2021 No. C. UNSECURED Foreign currency Loans (Guaranteed by Govt. of India) $World Bank Loan -8078-IN (For VPHEP) (Repayable within 23 years on half yearly installment from 15th Nov. 1,001.65 985.06 2017 to 15th May 2040, carrying interest rate @LIBOR+variable spread i.e. presently 0.96%) TOTAL (C) 1,001.65 985.06 TOTAL (A+B+C) 7,289.27 5,707.31 Less: Current Maturities: Term Loans from Financial Institutions-Secured 372.80 483.28 Foreign Currency Loans- Unsecured 53.83 50.23 Interest Accrued but not due on borrowings 208.66 159.58 TOTAL 6,653.98 5,014.22 * The Bonds series I are secured by first charge on paripassu basis on movable assets of Tehri HPP Stage-I. ** The Bonds Series II are secured by first charge on paripassu basis on movable assets of Tehri HPP Stage-I including book debts. *** The Bonds Series III are secured by first charge on paripassu basis on movable assets of Koteshwar HEP & Wind Power Projects of Patan & Dwarka. ^ The Bonds Series IV & V are secured by first charge on paripassu basis on the movable CWIP and future movable assets of Pumped Storage Plant located at Tehri. **** Long Term Loan Secured by first Charge on Pari Passu basis on Assets of Tehri Stage-I i.e. Dam, Power House Civil Construction, Power House Electrical & Mechanical equipments not covered under other borrowings and Project township of Tehri Dam and HPP together with all rights and interest appertaining there to. # Long Term Loan secured by first charge on Pari Passu basis on assets of Koteshwar HEP. @ Medium Term Loan secured against first charge on Pari Passu basis on assets of Tehri PSP. @@ Term Loan secured by first charge on Pari Passu basis on movable fixed assets (including plant & machinery and CWIP) both existing and future with respect to Kasargod solar power plant, Khurja STTP and Amelia Coal mine. $ With negative lien on the equipments financed under the respective loan ranking pari-passu. 21.1 There has been no default in repayment of any of the Loans or interest thereon during the period. 21.2 The Company has no cases of any charges or satisfaction yet to be registered with ROC beyond the Statutory time limits. 21.3 The Comapny has not been declared wilful defaulter by any bank or financial institution or other lender. 21.4 The Comapny has not taken any loan or advance from any other person or entity with the understanding that benefit of the transaction will go to a third party, the ultimate beneficiary. Note :-22 NON CURRENT- FINANCIAL LIABILITIES- LEASE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 LEASE LIABILITIES Unsecured 85.68 13.60 Less: Current Maturities of Lease Liabilities- 7.91 4.13 Unsecured TOTAL 77.77 9.47 258 Consolidated Financial Statements Note :-23 NON CURRENT FINANCIAL LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities     Deposits, Retention Money From Contractor etc. 206.52 31.26 Less: Fair Value Adjustment- Security Deposit/ 44.12 162.40 3.15 28.11 Retention Money        TOTAL 162.40 28.11 Note :-24 OTHER NON CURRENT LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Deferred Revenue On Account of Advance 189.92 197.51 Against Depreciation Contribution Received From Government of 582.19 595.87 Uttar Pradesh Towards Irrigation Sector Grant from MNRE Opening Balance 0.00 0.00 Add: Received during the year 0.50 0.00 Less: Utilised during the year 0.00 0.50 0.00 0.00 Deferred Fair Valuation Gain- Security Deposit/ 44.12 3.15 Retention Money TOTAL 816.73 796.53 Note :-25 NON CURRENT PROVISIONS Amount in Crore ` (Figures In Parenthesis Represent Deduction) Particulars Note No. As at For the Period Ended 31-Mar-2022 As at 01-Apr-2021 Addition Adjustment Utilisation 31-Mar-2022 I. Employee Related 183.71 3.46 (6.51) (6.75) 173.91 II. Others 6.66 0.13 (4.24) 0.00 2.55 TOTAL 190.37 3.59 (10.75) (6.75) 176.46 Figure for Previous Period 190.85 5.47 (1.05) (4.90) 190.37 25.1 Disclosure required by Ind AS-19 on employee benefit has been made in Note No. 43.25 25.2 Provision for others mainly includes provision for rehabilitation expenses 259 Consolidated Financial Statements Note :-26 CURRENT- FINANCIAL LIABILITIES- BORROWINGS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Short term Loan From Banks and Financial Institutions A. Secured loans: *State Bank of India (Carrying floating Interest Rate 0.00 250.00 linked with 90 days T Bill rate, presently @ 4.5%) Over Draft (OD)/ Cash Credit Facilit y From Banks **Punjab National Bank (Carrying Floating Interest Rate 650.33 0.00 @ 3 month MCLR presently 6.75% for overdraft & for WCDL at intrest rate 4.35% linked with TBLR) ***HDFC Bank (Carrying Floating Interest Rate @ 195.92 0.00 3 month Repo Rate + variable spread presently 6% for CC limit & 4.35% for WCDL) ****Bank of Baroda (Carrying Floating Interest Rate at 0.10 0.00 overnight MCLR presently 6.5%) *State Bank of India (Carrying Floating Interest Rate @ 79.75 0.00 3 month MCLR + variable spread presently 6.80% for CC limit & for WCDL 4.35%) TOTAL (A) 926.10 250.00 B.Unsecured loans: Axis Bank Ltd. (Carrying Floating Interest Rate linked 0.00 100.00 with Repo Rate +1%, presently 5%) HDFC Bank Ltd. (Carrying Floating Interest Rate linked 0.00 350.00 with Repo Rate plus spread, presently 4.45%) TOTAL (B) 0.00 450.00    C. Current Maturities of Long Term Debt SECURED ^ 372.80 483.28 UNSECURED ^ 53.83 50.23 TOTAL (C) 426.63 533.51 TOTAL (A+B+C) 1,352.73 1,233.51 *Secured by way of Trade Receivables of Koteshwar HEP. The balance is inclusive of WCDL. **Secured by way of 2nd Charge on Assets of Tehri Stage-1 and immovable properties/ other assets of Koteshwar HEP including movable machinery and machinery spares, tools & accsesories, fuel stock, spares & material at project site. The balance is inclusive of WCDL. ***Secured by way of exclusive charge on debtors of Comapny Plant- Patan Wind Power Project, Dev Bhoomi Dwarka wind Power Project, Dhukuwan Project and Solar Power Plant Kerla. The balance is inclusive of WCDL. ****Secured by extension of charge on term loan from Bank of Baroda and the security of term loan is stated in Note No. 21 under @@. ^Detail in respect of Rate of Interest and Terms of repayment of Current Maturity of Secured and unsecured Long Term Debt indicated above are disclosed in Note-21. 26.1 There has been no default in repayment of any of the Loans or interest thereon during the period. 26.2 The Company has no cases of any charges or satisfaction yet to be registered with ROC beyond the Statutory time limits. 26.3 The Comapny has not been declared wilful defaulter by any bank or financial institution or other lender. 26.5 Additional disclosure of borrowings on security of current assets disclosed vide Note No. 43.14 260 Consolidated Financial Statements Note :-27 CURRENT- FINANCIAL LIABILITIES- LEASE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Current Maturities of Finance Lease Obligations Unsecured 7.91 4.13 TOTAL 7.91 4.13 Note :-28 CURRENT- FINANCIAL LIABILITIES- OTHERS Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities For Expenditure For Micro And Small Enterprises. 2.07 0.14 For Others 131.83 133.90 142.95 143.09 Deposits, Retention Money From Contractors 273.74 160.44 etc. Less: Fair Value Adjustment- Security Deposit/ 0.00 273.74 0.00 160.44 Retention Money Deferred Fair Valuation Gain- Security Deposit/ 0.00 0.00 Retention Money Interest Accrued But Not Due Bondholders and Financial Institutions 209.32 160.62 Other Liabilities 0.00 209.32 0.00 160.62 TOTAL 616.96 464.15 Note :-29 OTHER CURRENT LIABILITIES Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Liabilities Deferred revenue on Account of Advance 7.60 7.60 Against Depreciation Other Liabilities 63.91 116.63 Contribution Towards Irrigation Component Contribution Received From Government of 858.99 845.31 Uttar Pradesh Towards Irrigation Sector LESS:- Adjustment Towards Depreciation 842.75 16.24 826.51 18.80 TOTAL 87.75 143.03 261 Consolidated Financial Statements Note :-30 CURRENT PROVISIONS Amount in Crore ` (Figures In Parenthesis Represent Deduction) Particulars Note No. As at Addition Adjustment Utilisation As at 01-Apr-2021 31-Mar-2022 I. Works 19.51 25.68 (3.36) (17.30 24.53 II. Employee Related 302.15 156.55 (6.61) (140.33) 311.76 III. Others 19.99 2.54 (7.77) (2.41) 12.35 TOTAL 341.65 184.77 (17.74) (160.04) 348.64 Figure for Previous Period 279.47 159.58 (7.12) (90.28) 341.65 30.1 Disclosure required by Ind AS-19 on employee benefit has been made in Note No. 43.25 30.2 Provision for others mainly includes provision for rehabilitation expenses and works. Note :-31 CURRENT TAX LIABILITIES (NET) Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 INCOME TAX Opening Balance 0.00 0.00 Addition during the period 207.42 243.05 Adjustment during the period (7.16) 0.00 Utilised during the period (200.26) (243.05) Closing Balance 0.00 0.00 Note :-32 REGULATORY DEFERRAL ACCOUNT CREDIT BALANCE Amount in Crore ` Particulars Note No. As at 31-Mar-2022 As at 31-Mar-2021 Opening Balance 550.22 618.63 Net movement during the period (35.02) (68.40) Closing Balance 515.20 550.23 32.A. Regulatory deferral account credit balance is due to deferred tax adjustment recoverable from beneficiaries. 262 Consolidated Financial Statements Note :-32.1 EXPENDITURE DURING CONSTRUCTION Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 EXPENDITURE EMPLOYEE BENEFITS EXPENSES 35 Salaries, Wages, Allowances & Benefits 172.89 144.13 Contribution to Provident & Other Funds 12.13 9.81 Pension Fund 13.56 8.53 Gratuity 6.59 4.25 Welfare 5.46 3.51 Amortisation Expenses of Deferred Employee 0.03 210.66 0.67 170.90 Cost OTHER EXPENSES 36 Rent Rent for office 0.26 0.13 Rent for Employee Residence 0.83 1.09 0.94 1.07 Rate and taxes 0.01 0.00 Power & Fuel 10.16 7.78 Insurance 0.15 0.11 Communication 1.62 0.73 Repair & Maintenance Plant & Machinery 0.00 0.04 Consumption of Stores & Spare Parts 0.00 0.00 Buildings 0.97 1.06 Others 3.63 4.60 2.58 3.68 Travelling & Conveyance 1.47 0.63 Vehicle Hire & Running 6.76 4.91 Security 9.20 11.50 Publicity & Public relation 0.49 0.70 Other General Expenses 18.64 9.15 Loss on sale of assets 0.01 0.01 Survey And Investigation Expenses 12.84 7.70 Expenses on Consultancy Project/ Contract 0.11 14.68 Interest others 7.51 3.15 Provisions For Bad And Doubtful Debts, 0.29 0.00 Loans & Advances Provisions For Stores & Spares 0.00 0.29 0.00 0.00    DEPRECIATION 2 30.14 24.00 TOTAL EXPENDITURE (A) 315.75 260.70 RECEIPTS OTHER INCOME 34 Interest From Bank Deposit 0.00 0.04 263 Consolidated Financial Statements Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 From Employees 0.74 0.62 Employee Loans & Advances- Adjustment on 0.03 0.67 Account of Effective Interest From Others 0.20 0.97 0.15 1.48 Machine Hire Charges 0.06 0.06 Rent Receipts 0.95 0.97 Sundry Receipts 3.83 3.48 Excess Provision Written Back 0.35 0.00 Fair Value Gain- Security Deposit/ Retention 1.55 2.84       Money TOTAL RECEIPTS (B) 7.71 8.83 NET EXPENDITURE BEFORE TAXATION 308.04 251.87 PROVISION FOR TAXATION 39 NET EXPENDITURE INCLUDING TAXATION 308.04 251.87 Acturial Gain/ (Loss) through OCI 41 0.21 0.05 Balance Brought Forward From Last Year 75.24 41.99 TOTAL EDC 383.07 293.81 Less:- EDC Allocated To CWIP / Asset 362.79 218.57 EDC Of Projects Under Approval Charged To 0.00 362.79 0.00 218.57    Profit & Loss Account Balance Carried Forward To CWIP 20.28 75.24 Note :-33 REVENUE FROM CONTINUING OPERATIONS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Income from Beneficiaries against 1,880.62 1,770.33 Sale of Power Add: Advance Against Depreciation 7.60 7.60 Less : Rebate to Customers 6.31 1,881.91 3.61 1,774.32 Deviation Settlement/ Congestion Charges 25.35 21.35 Consultancy Income 14.23 0.34 TOTAL 1,921.49 1,796.01 33.1 The Company has filed tariff petitions before the Hon’ble CERC for Tehri HEP & Koteshwar HEP for determination of Tariff for the period 2019-24. Pending tariff determination for 2019-24, sales revenue for current financial year has been provisionally recognized based on Audited & Certified AFCs of FY 2021-22 worked out as per the principles enunciated in CERC Tariff Regulations, 2019 applicable for the period 2019-24. 33.2 Due to completion of 12 years of commercial operation of Tehri Satge 1 project, AAD allowed and considered as deferred income earlier, has now been recognised as income in proportion to balance useful life of the project i.e. 28 years. 33.3 Hon’ble CERC has issued order dtd. 23.10.2021 for recovery of impact of wage revision of employees, Impact of GST, Minimum Wages and Security expenses (CISF) in Tehri HPP (1000MW) during the period from 01.01.2016 to 31.03.2019 amounting to ` 90.19 Crore to be recovered in 12 monthly installment from the beneficiaries. Against the aforesaid amount, Regulatory Deferral Account of ` 83.72 Crore was created which has now been adjusted. 264 Consolidated Financial Statements Note :-34 OTHER INCOME Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Interest On Bank Deposits (Includes TDS 0.44 0.31 ` 417640.00 Previous period ` 160808.00) From Employees 1.94 2.05 Employee Loans & Advances- Adjustment 2.06 4.93 on Account of Effective Interest Others 0.23 4.67 0.38 7.67 Machine Hire Charges 0.06 0.06 Rent Receipts 1.97 1.73 Sundry Receipts 6.18 7.18 Excess Provision Written Back 73.88 34.38 Profit on Sale of Assets 0.03 0.01 Late Payment Surcharge 225.46 660.94 Fair Value Gain- Security Deposit/ 1.74 3.05 Retention Money TOTAL 313.99 715.02 Less : Non Tariff income shared with beneficiaries 0.33 0.20 Transferred To EDC 32.1 7.71 8.83 TOTAL 305.95 705.99 Note :-35 EMPLOYEE BENEFITS EXPENSES Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Salaries, Wages, Allowances & Benefits 438.19 471.61 Contribution to Provident & Other Funds 29.57 29.25 Pension Fund 39.12 23.28 Gratuity 16.78 17.97 Welfare Expense 40.59 12.63 Amortisation Expenses of Deferred 2.06 4.93 Employee Cost TOTAL 566.31 559.67 Less : Transferred To EDC 32.1 210.66 170.9 TOTAL 355.65 388.77 265 Consolidated Financial Statements Note :-36 FINANCE COSTS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Finance Costs Interest On Bonds 343.75 226.70 Interest On Domestic Loans 100.25 146.24 Interest On Foreign Loans 9.25 13.57 Interest On Cash Credit 13.50 36.02 FERV 18.47 (24.92) Payment as per Income Tax Act 0.00 2.67 Interest Others 9.05 4.61 TOTAL 494.27 404.89 LESS:- Transferred And Capitalised With CWIP Account 352.65 219.81 Interest others transferred to EDC 7.51 3.15 TOTAL 134.11 181.93 Note :-37 GENERATION ADMINISTRATION AND OTHER EXPENSES Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Rent Rent for office 0.35 0.28 Rent for Employees Residence 1.59 1.94 2.21 2.49 Rate and taxes 2.35 3.00 Power & Fuel 21.41 16.95 Insurance 31.07 29.11 Communication 6.11 3.85 Repair & Maintenance Plant & Machinery 55.16 43.98 Consumption of Stores & Spare Parts 5.95 4.07 Buildings 22.79 18.41 Others 25.20 109.1 20.74 87.2 Travelling & Conveyance 3.63 1.96 Vehicle Hire & Running 11.23 8.09 Security 62.61 54.82 Publicity & Public relation 1.52 1.66 Other General Expenses 51.03 33.48 Payment to Auditors 0.32 0.28 266 Consolidated Financial Statements Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Loss on sale of assets 0.36 0.26 Survey And Investigation Expenses 12.84 7.7 Research & Development 3.46 4.52 Expenses on Consultancy Project/ Contract 8.06 14.62 Preliminary Expenses Written Off 0.00 0.40 Expenditure On CSR & S.D. Activities 27.20 23.01 TOTAL 354.24 293.40 LESS:- Transferred To EDC 32.1 67.15 62.65 TOTAL 287.09 230.75 37.1 Detailed information with respect to CSR has been disclosed vide Note No. 43.21 (i) Note :-38 PROVISIONS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Provisions For Doubtful Debts, CWIP and 0.29 0.00 Loans & Advances Provisions For Stores & Spares 0.00 0.25 TOTAL 0.29 0.25 LESS:- Transferred To EDC 32.1 0.29 0.00 TOTAL 0.00 0.25 38.1 Provision of stores is mainly due to obsolescence Note :-39 PROVISION FOR TAXATION Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 INCOME TAX Current Year 189.34 229.60 Sub Total 189.34 229.60 TOTAL 189.34 229.60 267 Consolidated Financial Statements Note :-40 NET MOVEMENT IN REGULATORY DEFERRAL ACCOUNT BALANCE Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Net Movement in Regulatory Deferral Account (36.01) 51.90   Balances Tax on Net Movement in Regulatory Deferral 6.29 (9.07) Account Balances TOTAL (29.72) 42.83 Note :-41 RE- MEASUREMENTS OF THE DEFINED BENEFIT PLANS Amount in Crore ` Particulars Note No. For the Period Ended For the Period Ended 31-Mar-2022 31-Mar-2021 Acturial Gain/ (Loss) through OCI 1.80 0.28 Sub Total 1.80 0.28 LESS:- Transferred To EDC 32.1 0.21 0.05 TOTAL 1.59 0.23 268 Consolidated Financial Statements 42.1 Disclosures on Financial Instruments and Risk Management: and Taxes are also recoverable from Beneficiaries in terms of the Tariff Regulations. Hence variation in interest rate, currency Ind AS 107 is applicable on Financial instruments. The exchange rate variations and other price risk variations are definition of Financial instruments is inclusive and cover recoverable from tariff and do not impact the profitability of the financial assets and financial liabilities. Explained below are the company. nature and extent of risks arising from financial instruments to which THDCIL is exposed during the period and at the end of Management of those Risks (mitigation)- the reporting period, and also how THDCIL is managing these risks. 1. The Company extends credit to customers in normal course of business. The Company monitors the payment i) Credit risk track record of the customers. Outstanding customer receivables are regularly monitored and any expected Credit risk is the risk that a counter party will not meet its losses are provided for as well. obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit 2. The Company has used ECL (expected credit loss) risk from its operating activities (primarily trade receivables) model while provision of any bad debt cases or expected and from its financing activities including loans etc given to provisions. employees. 3. The Company evaluates the concentration of risk with ii) Liquidity risk respect to trade receivables as low, as its customers are mainly state owned PSU DISCOM’s. Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations 4. CERC tariff regulations 2019-24 allows the Company to without incurring unacceptable losses. raise bills on beneficiaries for late-payment surcharge, which adequately compensates the Company for time iii) Market risk value of money arising due to delay in payment. Market risk is the risk that the fair value or future cash flows of a 5. Further, the fact that beneficiaries are primarily State financial instrument will fluctuate because of changes in market Governments/State DISCOM’s and considering the prices. Market prices comprise three types of risk: historical credit loss experience for trade receivables, the Company does not envisage either impairment in 1. Currency rate risk, the value of receivables from beneficiaries or loss due to time value of money due to delay in realization of trade 2. Interest rate risk and receivables. 3. Other price risks, such as equity price risk and commodity 6. The Company assesses outstanding trade receivables risk. on an ongoing basis considering changes in operating Financial instruments affected by market risk include loans and results and payment behavior and provides for expected borrowings, deposits and investments. credit loss on case-to-case basis. Foreign currency risk is the risk that the fair value or future 7. As at the reporting date, company does not envisage cash flows of a financial instrument will fluctuate because of any default risk on account of non-realization of trade changes in foreign exchange rates. receivables due to holding of Letters of Credit & TPA. Interest rate risk is the risk that the fair value or future cash 42.2 Impairment of financial assets: flows of a financial instrument will fluctuate because of changes In accordance with Ind AS-109, the Company has applied in market interest rates. Expected Credit Loss (ECL) model in the FY 2021-22 (previously Financial environment:- The company operates in a regulated it was carried out in the FY 2018-19) for measurement and environment. Tariff of the company is fixed by the Central recognition of impairment loss on the following financial assets: Electricity Regulatory Commission (CERC) through Annual a) Financial assets that are debt instruments and are measured Fixed Charges (AFC) comprising the following five components: at amortized cost. 1. Return on Equity (RoE), b) Financial assets that are debt instruments and are measured 2. Depreciation, as at FVTOCI. 3. Interest on Loans, c) Trade Receivables under Ind AS 115, Revenue Recognition. 4. Operation & Maintenance Expenses and d) Lease Receivable under Ind AS 116, Leases. 5. Interest on Working Capital Loans. The ECL model allows either of the 2 approaches- General approach or the Simplified approach. The company has In addition to the above, Foreign Currency Exchange variations followed “simplified approach” for the above cases. This 269 Consolidated Financial Statements required the expected life time losses to be recognized from 42.3 Impairment of assets: initial recognition of the receivables. As required by Ind AS 36, an asessement of impairment of For recognition of impairment loss on other financial assets, the assets was carried out for the projects Tehri Stage-1 (1000 company assess whether there has been a significant increase MW) & Koteshwar (400 MW) having CODs of Projects in the credit risk since initial recognition. If credit risk is not 09.07.2007 and 01.04.2012 resepectively during FY 2020-21. increased significantly, Lifetime ECL is used. For assessing Based on such assessement, there is no impairment of assets increase in credit risk and impairment loss, the Company as the “value in use” of both the projects exceeds the “carrying assesses the credit risk characteristics on item by item basis. amount” of fixed assets. If, in a subsequent period, credit quality of the instrument/item improves such that there is no longer a significant increase 43. Other explanatory notes on accounts: in credit risk since initial recognition, then the entity reverts 1. Estimated amount of contracts remaining to be executed on to recognizing the impairment loss allowance based on the capital account including R & R and environment demands, not 12-month ECL. Based on such assessment further ECL provided for (net of advances) is ` 5724.92 Cr. (PY ` 6297.31 provision is not required. Cr.). 2. Contingent Liabilities – (` Cr.) Particulars As at 31.03.2022 31.03.2021 A. Capital Works 1010.57 860.93 B Land Compensation cases 67.99 65.03 C State/Central Govt. deptt/Authorities 1235.32 1106.88 D Others 2823.21 2789.17 E Possible reimbursement in respect of A to D of above Nil Nil F Disputed Tax Matters 1.72 8.90 G Total 5138.81 4830.91 H Amount deposited by the Company in different Arbitration /Court cases / 460.06 460.77 Income Tax/ Trade Tax against the above 3. Company has been receiving FDRs/ CDRs with right to present 24/25th June 2004 of MoEF, Govt of India with directives to the before bank / financial institutions for claiming face value only Principal Secretary of Forest, Govt. of Uttarakhand for declaring against EMD/ SD. The company has FDRs/ CDRs amounting to the non forest land cleared for submergence as Reserve Forest / ` 1.17 Cr. and ` 3.53 Cr. (PY ` 1.72 Cr. and ` 3.63 Cr.) towards Protected Forest U/s.4 or Sec 29 of the Indian Forest Act, 1927 EMD and security deposit respectively besides this deposits or the State Forest Act. In view of the above facts the aforesaid money from contractors amounting to ` 480.26 Cr. (PY ` 191.70 land cannot be mutated in the name of the company. The said Cr.) as disclosed in Note 23 & Note 28 The same have been fair land remains the property of the State Govt. as Reserved Forest/ valued on the basis of effective interest rate and the same are Protected Forest. Relying upon clearance of the MoEF, dam accounted as well. reservoir water has been allowed to submerge the said area which has been declared as Reserved Forest. 4. The amount of borrowing cost capitalized and transferred to EDC pending for allocation during the year ` 352.65 Cr. & ` 7.51 Cr. Besides above 44.429 ha of Civil Soyam land subject to Forest respectively as per note 36 (PY ` 219.81 Cr. & ` 3.15 Cr.) after Conservation Act on which stores, workshop, staff quarters and adjustment of an amount of ` 0.40 Cr. (PY ` 0.16 Cr.) towards other utilities etc were constructed by the Irrigation Dept. of the interest earned on short term deposit of surplus borrowed funds then UP Govt as basic requirement forming integral part of the during the year. Further as per the provisions of Ind AS 21, Tehri Hydro Project. Relying upon office order vide No. 585/ Deferral Account Balances- Debit balance have been recognised Tehri Dam Project/23-C -4/T-18 dated 29.05.1989 issued by the ` 12.70 Cr. (PY Credit - `.16.50 Cr.). Irrigation Dept of the then UP Govt. (issued for transferring assets of Irrigation Dept in favour of THDC India Ltd) the company has 5. (i) Construction of Tehri Hydro Complex was commenced by taken possession of the said assets. the Irrigation Dept. of the then Uttar Pradesh State Govt in mid seventies. As the project area is inclusive of forest area, clearance (ii) Initially land was acquired by the then UP Irrigation Dept. and land for diversion of forest land for non forest use was sought from records were in the name of Tehri Dam. Oustees handed over the the MoEF, Govt. of India. The MoEF, GoI has conveyed clearance land to the then UP Irrigation Department as mutation was not for diversion of 2582.9 ha of forest land (2311.4 ha Civil Soyam completed. Subsequent to formation of Tehri Hydro Development Land and 271.50 ha reserve forest land) vide their letter No. Corporation of India Ltd, land was acquired in the name of the 8-32/06-FC dated 09th June 1987 addressed to Secretary Forest, company. Consequent upon change in the name of the company Govt of Uttar Pradesh for construction of Tehri Dam. The said as THDC India Ltd, process of converting few of the land records order was partially modified vide letter No. 8-32/86-FC, dated in the present name of the company is under process. 270 Consolidated Financial Statements Details of title deeds of immovable properties not held in the name of the Company are as under: As on 31.03.2022 Relevant line Description Area Gross Title deeds held Whether title Property held Reason for not item in the of item of (Hac.) carrying value in the name of deed holder since date being held in Balance Sheet property (` in Cr.) is a promoter, the name of the director or company relative of 1 2 3 4 5 6 7 8 Property, Plant & Land Freehold 53.5 0.78 Private land in No Acquired in Transfer of title Equipment the name of between 1976 deed in the name of different villagers to 2006 corporation is still under process Property, Plant & Land Freehold 0.48 Government / No Inception from Non-transferable Equipment Forest Dept the formation of the company Property, Plant & Land Freehold 2.068 1.21 Private land in No Acquired in the Out of total land Equipment the name of year 2012 of 5.974 hac., title different villagers deeds of 3.974 hac. has already been transferred and for balance land of 2.068 hac is under process. Property, Plant & Land Freehold 7.28 0.50 Govt. No 31.10.2006 This land is not in Equipment the name of THDCIL, it was handed over to THDCIL on adhoc basis by Director Rehabilitation on 31.10.2006. Property, Plant & Land Freehold 34.648 0 .01 Govt. / Forest No Jul 1988 Transfer from UP Equipment Dept Irrigation Dept as asset transfer Property, Plant & Land under 411.78 38.63 Private land in No Acquired in Transfer of title Equipment submergence the name of between 1976 deed in the name of different villagers to 2006 corporation is still under process Property, Plant & RoU Assets 44.429 (*) Government / No Acquired in Lease deed is yet to Equipment Forest Dept 1989 be signed Property, Plant & RoU Assets 485.96 309.49 UPSIDC No 14.12.2013 Under process Equipment Property, Plant & RoU Assets 178.13 48.85 Govt. No 13.09.2021 Non-transferable Equipment CBA Land Property, Plant & RoU Assets 14.28 1.99 Govt. No 20.12.2021 Non-transferable Equipment Property, Plant & RoU Assets 11.54 9.77 Pvt. No 20.12.2021 Non-transferable Equipment (*) Provision for ` 49.03 Cr. made in the FY 2020-21 reversed. 271 Consolidated Financial Statements As on 31.03.2021 Relevant line Description Area Gross Title deeds held Whether title Property held Reason for not item in the of item of (Hac.) carrying value in the name of deed holder since date being held in Balance Sheet property (` in Cr.) is a promoter, the name of the director or company relative of 1 2 3 4 5 6 7 8 Property, Plant & Land Freehold 53.5 0.78 Private land in No Acquired in Transfer of title Equipment the name of between 1976 deed in the name of different villagers to 2006 corporation is still under process Property, Plant & Land Freehold 0.48 Government / No Acquired in Non-transferable Equipment Forest Dept between 1976 to 2006 Property, Plant & Land Freehold 2.068 1.21 Private land in No Acquired in Out of total land Equipment the name of the year 2012 of 5.974 hac., title different villagers deeds of 3.974 hac. has already been transferred and for balance land of 2.068 hac is under process. Property, Plant & Land Freehold 7.28 0.50 Govt. Land No 31.10.2006 This land is not Equipment in the name of THDCIL, it was handed over to THDCIL on adhoc basis by Director Rehabilitation on 31.10.2006. Property, Plant & Land Freehold 34.648 0 .01 Government / No Jul 1988 Transfer from UP Equipment Forest Dept Irrigation Dept as asset transfer Property, Plant & Land under 411.78 38.63 Private land in No Acquired in Transfer of title Equipment submergence the name of between 1976 deed in the name of different villagers to 2006 corporation is still under process Property, Plant & RoU Assets 44.429 49.03 Government / No Acquired in Lease deed is yet to Equipment Forest Dept 1989 be signed Property, Plant & RoU Assets 485.96 309.49 GoUP/UPSIDC No 14.12.2013 Under process Equipment 6. 18 Flats (PY 21 Flats,) net valued ` 0.04 Cr. (PY `. 0.05 Cr.) on the land acquired by the company are in unauthorized occupation of various persons. Freehold land includes 0.458 Hectares costing ` 0.001 Cr. located at Sautiyal village encroached by unauthorized occupants. 7. (i) Due to slow progress of VPHEP project owing the various factors beyond control of company i.e. adverse geological conditions, stoppage of work by local and financial crisis of civil work contractor M/s HCC the work progress could not achieved at required level. Considering the acute financial crisis of contractor THDC’s Board has approved arrangement for financial regulation of gap funding to M/s HCC for expeditious completion of VPHEP project. A loan of US$ 157.755 million has been drawn as on 31st March 2022 from the World Bank as against original loan sanction amount to US$ 648 million. Due to change in dollar conversion rate, an amount of US$ 200 million has been cancelled by World Bank on the request of the company. Therefore amount availabe for disbursement is US$ 448 million .The disbursement schedule has been extended by World Bank upto June 2022.However the debt servicing has been made as per original loan agreement. 272 Consolidated Financial Statements (ii) Due to slow progress of Tehri PSP project owing the various factors beyond control of company i.e. adverse geological conditions, delay in permission for mining of aggregate from Asena Quarry, obstruction in dumping of muck, financial crisis of civil work contractor M/s HCC the work progress could not achieved at required level. Considering the acute financial crises of contractor. THDC’s Board has approved arrangement for financial regulation of gap funding to M/s HCC for expeditious completion of PSP project. 8. 65 MW Maleri Jhelam and 108 MW Jhelam Tamak Hydro Electric Projects in Chamoli District of Uttarakhand were being affected by the Hon’ble Supreme Court order dated 13th August 2013 directing MoEF and State of Uttarakhand not to grant any Environment or Forest Clearance for any new hydro electric project of Uttarakhand until further orders. Considering the fact as above and uncertainty involved with respect to execution of the projects, a provision of ` 12.51 Cr. and ` 22.32 Cr. in respect of expenditure incurred on Maleri Jhelam and Jhelam Tamak projects was made during the FY 2018-19 and the same has been written off in the current year. 9. (i) Ageing Schedules of CWIP as at 31.03.2022 & 31.03.2021 are as under: Project Amount in CWIP for a period of Total (` in Cr.) Less than 1 year 1-2 years 2-3 years More than 3 years As at 31.03.2022 Project in progress 3,175.24 1,433.47 965.95 3,892.84 9,467.50 Project temporarily suspended As at 31.03.2021 Project in progress 1,511.96 983.91 519.72 3,405.13 6,420.71 Project temporarily suspended (ii) The Completion schedules for the projects which have exceeded their original cost & completion schedule as on 31.03.2022 & 31.03.2021 are as under: Project To be completed in Total (` in Cr.) Less than 1 year 1-2 years 2-3 years More than 3 years As at 31.03.2022 PSP (1000 MW) 569.61 153.20 - - 722.81 VPHEP (444 MW) 500.00 500.00 406.00 - 1406.00 As at 31.03.2021 PSP (1000 MW) 546.22 210.00 112.24 - 868.46 VPHEP (444 MW) 413.30 430.00 425.00 371.77 1640.07 273 Consolidated Financial Statements 10. Trade Receivables ageing schedule as at 31.03.2022 & 31.03.2021 As on 31.03.2022 (` in Cr.) Particulars (A) Total Unbilled Billed but Billed and Due (E) Total (F) Outstanding (C) Not Due Less 6 1-2 2-3 More = (B) (upto 45 than 6 months years years than (C+D+E) days) months -1 year 3 years (D) (i) Undisputed Trade receivables – 669.69 172.57 130.76 143.54 57.59 140.97 4.29 19.98 669.69 considered good (ii) Undisputed Trade Receivables – which have significant increase in credit risk (iii) Undisputed Trade Receivables – credit impaired (iv) Disputed Trade Receivables 54.03 - - 54.03 - - - - 54.03 considered good (v) Disputed Trade Receivables – which have significant increase in credit risk (vi) Disputed Trade Receivables – credit impaired Total 723.72 172.57 130.76 197.57 57.59 140.97 4.29 19.98 723.72 As on 31.03.2021 (` in Cr.) Particulars (A) Total Unbilled Billed but Billed and Due (E) Total (F) Outstanding (C) Not Due = (B) (upto 45 (C+D+E) days) (D) Less 6 1-2 2-3 More than 6 months years years than months -1 year 3 years (i) Undisputed Trade receivables – 1,162.04 106.56 168.16 538.07 193.77 131.66 18.76 5.05 1,162.03 considered good (ii) Undisputed Trade Receivables – which have significant increase in credit risk (iii) Undisputed Trade Receivables – credit impaired (iv) Disputed Trade Receivables considered good (v) Disputed Trade Receivables – which have significant increase in credit risk (vi) Disputed Trade Receivables – credit impaired Total 1,162.04 106.56 168.16 538.07 193.77 131.66 18.76 5.05 1,162.03 274 Consolidated Financial Statements 11. Trade Payables ageing schedule as at 31.03.2022 & 31.03.2021 As on 31.03.2022 Particulars Outstanding for following periods from due date of payment# Total Less than 1 year 1-2 years 2-3 years More than 3 years (i) MSME 0.60 0.00 0.00 0.00 0.60 (ii) Others 25.19 1.42 0.60 0.12 27.34 (iii) Disputed dues – MSME (iv) Disputed dues - Others As on 31.03.2021 Particulars Outstanding for following periods from due date of payment# Total Less than 1 year 1-2 years 2-3 years More than 3 years (i) MSME 0.42 0.00 0.00 0.00 0.42 (ii) Others 22.90 1.24 0.11 0.40 24.65 (iii) Disputed dues – MSME (iv) Disputed dues - Others 12. Detail of transactions with the struck-off companies : Name of Struck off Nature of transactions Balance outstanding ` in Cr. Relationship with Struck company (PAN) with Struck off 31-03-2022 31-03-2021 off company, if any, to be company disclosed IMPERIA TECHSOLUTIONS Payables - 0.01 Trade Payable PRIVATE LIMITED (AAECI0751K) ANANTSHRI INDUSTRIAL Payables 0.04 - Trade Payable SECURITY (OPC) PRIVATE LIMITED (AAPCA3824J) 13. Being a Governemnt Company as per the provison of Sec.2(45) of the Companies Act, 2013, the provisons of clause (87) of Section 2 of the Act read with the Companies (Restrictions on number of Layers) Rules 2017 are not applicable to the company. 275 Consolidated Financial Statements 14. Additional disclosures w.r.t. borrowings on security of current assets : (` in Cr.) FY 2021-22 Name of Bank Particulars of Securities provided Amount Reason for Material Description of Amount as per Amount as of discrepancies Securities books of reported in Difference accounts the quarterly / statement SBI Trade Receivables of 329.92 329.59 0.33 Difference is on account Koteshwar Project of Deviation and Liability Jun-21 for TCS accounted for at later stage. SBI Trade Receivables of 256.58 256.30 0.28 Difference is on account Koteshwar Project of Deviation and Liability Sep-21 for TCS accounted for at later stage. SBI Trade Receivables of 163.21 162.58 0.62 Difference is on account Koteshwar Project of Deviation ,FRAS and Liability for TCS accounted for at later stage. Dec-21 HDFC Trade Receibles of 6.55 6.55 – Nil Patan & Dwarka Wind Project, Dhukwan SHP and Kasargod Solar Project SBI Trade Receivables of 164.97 164.63 0.34 Difference is on account Koteshwar Project of Liability for TCS and POSCO receivables, accounted for at later stage. Mar-22 HDFC Trade Receibles of 3.42 3.42 – Nil Patan & Dwarka Wind Project, Dhukwan SHP and Kasargod Solar Project 15. Disclosures under Ind AS-24 “Related Party Disclosures”:- (A) List of Related Parties: (i) Parent: Name of Companies/entity Principle place of operation NTPC Limited India Govt. of Uttar Pradesh India 276 Consolidated Financial Statements (ii) Subsidiary company : TUSCO Limited (iii) Key Managerial Personnel: Sl. Name Position held Period A. Whole Time Directors 1 Shri R.K. Vishnoi Chairman & Managing Director* W.e.f. 06.08.2021 2 Shri Vijay Goel Director (Personnel) Upto 31.10.2021 3 Shri D.V. Singh Chairman & Managing Director Upto 30.04.2021 4 Shri J. Behera Director (Finance) Continue B. Nominee Directors 1 Shri U. K. Bhattacharya Non-executive Director W.e.f. 26.08.2020 2 Shri A. K. Gautam Non-executive Director W.e.f. 23.04.2020 3 Shri T. Venkatesh Non-executive Director Upto 31.01.2022 4 Shri Raj Pal Non-executive Director Upto 30.04.2021 5 Shri Jitesh John Non-executive Director W.e.f. 21.06.2021 C. Independent Directors 1 Smt. Sajal Jha Independent Director W.e.f. 10.11.2021 2 Dr. Bajalakaria JayaPrakash Naik Independent Director W.e.f. 10.11.2021 D. Chief Financial Officer and Company Secretary 1 Shri J. Behera Chief Financial Officer Continue 2 Ms. Rashmi Sharma Company Secretary Continue Subsidiary Company-TUSCO Ltd. 1 Shri R.K. Vishnoi Chairman W.e.f. 06.08.2021 2 Shri Vijay Goel Chairman From 01.05.2021 to 05.08.2021 3 Shri D.V. Singh Chairman Upto 30.04.2021 4 Shri J. Behera Nominee Director-THDCIL Continue 5 Shri Bhawani Singh Khangarot Nominee Director-UPNEDA Continue 6 Shri Shailendra Singh CEO Continue 7 Shri K. K. Srivastava CFO Continue 8 Shri H. Bajpai Company Secretary Continue (*) Also holding additional charge of Director (Technical) w.e.f. 06.08.2021 and of Director (Personnel) w.e.f. 01.11.2021. (iv) Post Employment Benefit Plans: Name of Related Parties Principal place of operation THDC Employees Provident Fund Trust India THDCIL Employees Defined Contribution Superannuation Pension Trust India THDCIL Post Retirement Medical Benefit Fund Trust India (v) Others SEWA-THDC, a Company Sponsored Not for Proft Society, registered under Socities Act 1860, to undertake THDCIL’s CSR obligation U/s 135 of Companies Act 2013. Summary of transactions with related parties (other than for contractual obligations) - ` 27.20 Cr. disbursed to SEWA-THDC for CSR activities. (vi) Others entities with joint control or significant influence over the Company. The Company is a subsidiary of Central Public Sector Undertaking (CPSU) w.e.f. 27.03.2020 controlled by Central Government by holding majority of shares. Pursuant to Paragraph 25 & 26 of Ind AS 24, entities over which the same government has control or joint control of, or 277 Consolidated Financial Statements significant influence, then the reporting entity and other entities shall be regarded as related parties. The Company has applied the exemption available for government related entities and have made limited disclosures in the financial statements. Name and nature of relationship with Government Sl. Name of Related Parties Nature of Relationship 1. Government of India Shareholder in Holding Company having control over company 2. NTPC Limited Holding Company (74.496%) 3. Govt. of Uttar Pradesh Shareholder (25.504%) (B) Transactions with the related parties: (i) Transactions with the related parties (Post Employment Benefit Plans.) are as follows : (` in Cr.) Name of Related Parties 2021-22 2020-21 THDC Employees Provident Fund Trust 29.43 26.93 THDCIL Employees Defined Contribution 24.04 32.32 Superannuation Pension Trust THDCIL Post Retirement Medical Benefit Fund Trust 4.36 5.83 (ii) Compensation to Functional Directors & Key Managerial Personnel: Remuneration and allowances, other benefits and expenses to key managerial personnel including Independent director’s fees & expenses are ` 4.30 Cr. (Previous period ` 4.63 Cr.). (` in Cr.) Sl. Description Year ended 31.03.2022 Year ended 31.03.2021 Compensation to Key Management Personnel 1 Short Term Employee Benefits 3.67 4.05 2 Post Retirement & Other Long Term Employee Benefits 0.63 0.58 3 Termination Benefits 4 Share-Based Payment Total 4.30 4.63 (iii) Transactions with related parties under the control of the same government are as follows: (` in Cr.) Name of the Company Nature of Transactions by the Company For the period ended 31.03.2022 31.03.2021 NTPC Ltd. Consultancy Service 18.47 27.35 BHEL Purchase of Equipments & Spares with service 255.41 163.65 contract IOCL Purchase of Fuel 2.37 1.67 BPCL Purchase of Fuel 0.62 0.94 PGCIL Shifting of HT lines, Consultancy charges, 84.88 53.79 Power Line Diversion CMPDIL Consultancy 12.14 6.64 Utility Powertech Ltd. JV of NTPC & Reliance Manpower Supply 0.94 0.50 RITES Consultancy Service 15.48 4.27 NTPC Limited Payment of dividend 378.59 527.25 NTPC VIDYUT VYAPAR NIGAM LIMITED Subscription Fees 0.01 - Solar Energy Corporation of India (SECI) Consultancy 5.61 1.09 NTPC Limited Consultancy-DPR for TUSCO - 1.12 Others Misc. 2.34 1.08 278 Consolidated Financial Statements (C) Outstanding balances with related parties are as follows: (` in Cr.) Particulars 31-Mar-2022 31-Mar-2021 A. Amount Recoverable for sale/purchase of goods and services -NTPC Ltd. (Parent company) Nil Nil -TUSCO Ltd.(Subsidiary co.) Nil Nil B. Amount recoverbale other than loans & advances -KMP 0.29 0.11 C. Amount payable for sale/purchae of goods & services NTPC (by TUSCO) 0.11 0.11 (D) Terms and conditions of transactions with the related parties: (a) Transactions with the related parties are made on normal commercial terms and condition and at market rates. (b) The company has assigned consultancy jobs to parent company prior to strategic sale of GoI Equity to M/s NTPC Ltd. on 27.03.2020, for Khurja Super Thermal Power Project on cost plus basis after mutual discussion and after taking into account the prevailing market condition. 16. Disclosure as per Ind As 110 ‘Consolidated Financial Statements’ During the year 2020-21, M/s TUSCO Limited has been promoted on 12.09.2020 as JV with UPNEDA with the Equity participation in the ratio 74:26 with 74% held by THDC and 26% held by UPNEDA. Complying the provisions of Ind AS 110 and Companies Act 2013, THDC has complied Consolidated Financial Statements(CFS) during the year. The CFS includes: Consolidated Balance Sheet; Consolidated Statement of Profit & Loss, Consolidated Cash Flow Statement; Statement of changes in equity; and Notes on Accounts. 17. Disclosure as per Ind As 112 ‘Disclosure of Interest in Other Entities’ (a) M/s TUSCO Limited, a subsdiary of THDC India Ltd., has been promoted with UPNEDA with the Equity participation in the ratio 74:26 between the Company & UPNEDA. The country of incorportion or registration is also its principal place of business. (b) Non-controlling interest (NCI) The following is summarised financial information for subsidiary that has non-controlling interest. The amounts disclosed for M/s TUSCO Limited are before intere-company eliminations: Summarised Balance Sheet (` in Cr.) Particulars TUSCO Ltd As at 31.03.2022 As at 31.03.2021 Current Assets 2.62 7.24 Current Liabilities 6.55 4.26 Net Current Assets/(Liabilities) (3.93) 2.99 Non-current assets 70.92 7.03 Non-current liabilities 48.28 0.28 Net assets 18.71 9.74 Accumulated NCI 4.86 2.53 279 Consolidated Financial Statements Summarised Statement of Profit & Loss Particulars FY 2021-22 FY 2020-21 Total income 0.10 0.08 Profit/(loss) for the year (1.03) (0.26) Other comprehensive income/(expense) - Profit/(loss) allocated to NCI (0.27) (0.07) Dividends paid to NCI - - Summarised cash flow for the period ended Particulars TUSCO Ltd As at 31.03.2022 As at 31.03.2021 Cash flows from/(used in) operating activities (2.90) 3.82 Cash flows from/(used in) investing activities (63.43) (6.95) Cash flows from/(used in) financing activities 61.67 10.34 Net increase/(decrease) in cash and cash equivalents (4.66) 7.22 (c) Details of significant restrications Save and except as agreed through mutual consultation with UPNEDA, THDCIL shall not take any action that may result in shareholding in the subsidiary falling below 51%. (d) Changes in parent’s ownership interest in Susidiary – (` in Cr.) Particulars Owners interest Minority interest Total Share capital Other equity Share capital Other equity Share capital Other equity including (other including (other including (other than share share than share share than share share appliation money application appliation application appliation application pending allotment money money money money money pending pending pending pending pending allotment allotment allotment allotment allotment As at 1 April 2021 7.21 0 2.53 0 9.74 Equity investment 7.40 2.60 10.00 during the period Share in statement of (0.76) (0.27) (1.03) profit and loss for the period Impact of change in ownership interest As at 31 Mar. 2022 13.85 0 4.86 0 18.71 280 Consolidated Financial Statements 18. Disclosures as per Ind AS 33 ‘Earnings per share’ The elements considered for calculation of earnings per share (Basic & Diluted) are as under: 2021-22 2020-21 Net Profit after Tax but excluding Regulatory Income used as numerator (` Cr.) 923.73 1049.39 Net Profit after Tax including Regulatory Income used as numerator (` Cr.) 894.01 1092.22 Weighted average no. of equity shares used as denominator Basic : 36658817 Basic : 36658817 Diluted : 36658817 Diluted : 36658817 Earnings per Share excluding Regulatory Income ` Basic 251.98 286.26 ` Diluted 251.98 286.26 Earnings per Share including Regulatory Income ` Basic 243.88 297.94 ` Diluted 243.88 297.94 Nominal Value per share ` `1000 ` 1000 19. (a) Income tax expense (i) Income tax recognized in the statement of profit and loss (` in Cr.) Particulars For the year ended 31 March 2022 31 March 2021 Current tax expense Current year 183.05 238.66 Adjustment of earlier years 0.00 Pertaining to regulatory deferral account balances (A) 6.29 (9.06) Total current tax expenses (B) 189.34 229.60 (b) MAT credit available to the company in future but not recognized: (i) MAT credit available to the Company in future but not recognized as at 31 March 2022 is ` 487.72 Cr. (31 March 2021 ` 580.97 Cr.) (ii) In compliance to the Ind AS 12 “Income Taxes” issued by the Ministry of Company Affairs. The net increase in the deferred tax liability of ` 34.59 Cr. (PY- ` 68.32 Cr.) has been booked to Statement of Profit & Loss. 20. The Company has Input Tax Credit under the provision of Goods & Service Tax lying in different locations. The said input tax credit (ITC) has been claimed over the GST Portal which will be utilised in future suject to the applicable provisons of GST and same has not been recognised as ITC available for utilisation in the books of accounts. 21. (i) Disclosure related to Corporate Social Responsibility (CSR) a. The company has spent an amount of ` 27.20 Cr. (PY ` 23.01 Cr.) towards CSR expenditure during the current financial year 2021-22 as against stipulated amount of ` Cr. 26.23 (PY ` 23.01 Cr.) equivalent to 2% of average net profit of preceding three financial years in terms of Section 135 of the Companies Act 2013 resulting in excess expenditure of ` 0.97 Cr. and the same excess expenditure shall be set-off against the requirment to spend under sub-section (5) of section 135 up to immediate succeeding three financial year i.e.upto FY 2024-25. 281 Consolidated Financial Statements b. Details of expenditure during FY 2021-22 in cash and yet to be paid in cash along with the nature of expenditure (capital or revenue) is as under: (` in Cr.) In cash Yet to be paid Total (i) Const./Acquistion of any assets (ii) On purpose other than (i) 27.20 0.00 27.20 c. The breakup of CSR expenditure incurred through SEWA-THDC, a Company Sponsored Not for Profit Society, registered under Societies Act 1860, to undertake THDCIL’s CSR obligation U/s 135 of Companies Act 2013 is as under : Sl.No. Nature of CSR activities ` in Cr. 1 Sanitation, Health Care & Drinking Water 6.13 2 Education & Livelihood Programme 10.09 3 Women Empowering & Setting up old Age Homes etc. 0.25 4 Forest & Envionment, Animal Welfare etc. 1.68 5 Art & Culture, Public labaries 2.21 6 Measuers for the benefit of Armed forces Veterans, War window etc. 0.10 7 Promotion of Sports 0.32 8 Prime Minister’s National Relief fund etc. 4.05 9 Welfare of SC 0.00 10 Rural Development Projects 1.03 11 Calamity/Disaster 0.60 CSR Administrative Exps 0.74 Total 27.20 ii Disclosure related to Research & Development Expenditure The Company has incurred an amount of ` 3.46 Cr. (Revenue ` 3.46 Cr.) [PY ` 4.52 Cr. (Revenue ` 4.52 Cr.)] towards Research & Development expenditure during the current financial year 2021-22 as per the R&D plan. 22. Information in respect of micro and small enterprises as at 31st March 2022 as required by Micro, Small & Medium Enterprises Development Act, 2006 (MSMED Act) and the said outstanding is less than 45 days. (` in Cr.) 2021-22 2020-21 a. Amount remaining unpaid to any supplier: i) Principal amount 2.67 0.56 ii) Interest due thereon 0.00 b. Amount of interest paid in terms of Section 16 of the MSMED Act along-with 0.00 the amount paid to the suppliers beyond the appointed day c. Amount of interest due and payable for the period of delay in making payment 0.00 (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act. d. Amount of Interest accrued and remaining unpaid 0.00 e. Amount of further interest remaining due and payable even in the succeeding 0.00 years, untill such date when the interest dues as above are actually paid to the small enterprises, for the purpose of disallowances as a deductable expenditure under Section 23 of MSMED Act 282 Consolidated Financial Statements 23. Impact of changes in Significant Accounting Policy Sl. No. Policy Modifications Impact / Remark 1. Policy No. 4 - Development expenditure on Coal Mines has The Policy has been modified to improve the disclosure and been modified by adding Policy No. 4.1, 4.2. & 4.3 . considering the mining activities expected to commence in the Amelia Coal Mines and align the policy with the policy of the holding company. No financial impact due to this change. 24. Disclosure as per Ind AS 116 ‘Leases’ Effective from 1st April 2019, THDCIL has adopted Ind AS 116 ‘Leases’ and applied the standard to all lease contracts existing on 1 April 2019, using the modified retrospective method. The same are adhered in the current fiscal year. i. The Company’s significant leasing arrangements are in respect of the following assets: (a) Premises for residential use of employees. Offices and guest houses/ transit camps are on lease which are not non-cancellable and are usually renewable on mutually agreeable terms. (b) The Company has taken certain vehicles (other than electrical) on lease for a period of three years, which can be further extended at mutually agreed terms. There are no escalations in the lease rentals as per terms of the agreement. However, the Company has purchase option for such vehicles at the end of the lease term. (c) The Company acquires land on leasehold basis for a period generally ranging from 05 years to 99 years from the government authorities which can be renewed further based on mutually agreed terms and conditions. The leases are non cancellable. These leases are capitalized at the present value of the total minimum lease payments to be paid over the lease term. Future lease rentals are recognised as ‘Lease liabilities’ at their present values. The Right-of-use land is amortized considering the significant accounting policies of the Company. In respect of leases at (b) & (c) above, the carrying amount of the right-of-use asset and the lease liability at the date of initial application is the carrying amount of the lease asset and lease liability immediately before that date measured applying Ind AS 17. ii. The following are the carrying amounts of lease liabilities recognised and the movements during the period: (` in Cr.) Particulars For the Year ended For the Year ended 31 March 2022 31 March 2021 Opening Balance 13.59 15.88 - Additions in lease liabilities 74.36 2.10 - Interest cost during the year 7.32 1.56 - Payment of lease liabilities 9.59 5.94 Closing Balance 85.68 13.60 Current 7.91 4.13 Non Current 77.77 9.47 iii. Maturity Analysis of the lease liabilities: Contractual undiscounted cash flows As at 31 March 2022 As at 31 March 2021 3 months or less 2.76 1.15 3-12 Months 8.31 3.48 1-2 Years 12.31 5.36 2-5 Years 24.27 2.17 More than 5 Years 178.01 7.22 Lease liabilities 225.84 19.38 283 Consolidated Financial Statements iv. The following are the amounts recognized in profit or loss: Particulars As at 31 March 2022 As at 31 March 2021 Depreciation expense for right-of-use assets 18.49 17.24 Interest expense on lease liabilities 7.32 1.56 Expense relating to short-term leases 1.94 2.49 v. The following are the amounts of cash flow against leases: Particulars For 31st March 2022 For 31st March 2021 Cash Outlow from leases 9.59 5.94 Cash outflow relating to short-term leases 1.94 2.49 25. Disclosures under the provisions of IND AS 19 –Employee Benefits are as under: a. Defined contribution Plan: - Pension The company has Defined Contribution Pension Scheme as approved by Ministry of Power (MoP). The liability for the same is recognised on accrual basis.The scheme is funded and managed by separate trust formed for this purpose. b. Defined benefit plans: (i) Employers contribution to Provident Fund: The Company pays fixed contribution to Provident Fund at predetermined rates to a separate trust, which invests the fund in permitted securities. The obligation of the company is limited to such fixed contribution and to ensure a minimum rate of return to the members as specified by GOI. Based on the actuarial valuation ` 25.56 Cr. (PY Nil) as the Present Value of Obligations exceeds the Fair Value of Plan Assets by ` 25.56 Cr. (PY ` 0.21 Cr. as the Fair value of plan assets exceeds the present value of obligations) has been provided in the books Further, contribution to employee pension scheme is paid to the appropriate authorities. (ii) Gratuity: The Company has a defined benefit Gratuity Plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The liability for the same is recognized on the basis of actuarial valuation. (iii) Leave encashment: The Company has a defined benefit leave encashment plan for its Employees. Under this plan they are entitled to encashment of earned leaves and medical leaves subject to limits and other conditions specified for the same. The liability towards leave encashment is recognised on the basis of actuarial valuation. (iv) Post Retirement Medical Benefit (PRMB): The Company has Post Retirement Medical Benefit Scheme, under which retired employee, spouse of retired employee are provided medical facilities in the Company hospitals/empanelled hospitals. They can also avail treatment as Out-Patient subject to a ceiling fixed by the Company. Further, a trust has been created to manage the scheme and fully functional. The liability towards the same is recognised on the basis of actuarial valuation. The obligation of the company is limited to the payment of the shortfall of Present Value of Plan Assets over the Present Value of Obligation as ascertained through Actuarial Valuation. Based on the actuarial valuation ` 5.91 Cr. (PY ` 4.29 Cr.) as the Present Value of Obligations exceeds the Fair Value of Plan Assets by ` 5.91 Cr. (PY ` 4.29 Cr.) has been provided in the books. 284 Consolidated Financial Statements (v) Other benefit (Baggage/LSA/FBS) plans: Other retirement benefit plans include baggage allowance for settlement at any other place where he / she may like, memento at the time of retirement and monetary assistance to the legal heir(s) in the event of death and Total Permanent Disablement leading to separation of employee as a Social Security Measure. These schemes are unfunded and liability for the same is recognised on the basis of actuarial valuation. Provision for employee benefits has been made for the current period using the Actuarial Valuation done as at 31.03.2022. Accordingly, disclosure under the provision of Ind AS 19 on “Employee Benefits” for the Financial Year ended 31.03.2022 is given below: Table - 1: Key Actuarial assumption & Risk exposures for Actuarial Valuation as at: Particular 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Mortality Table IALM IALM IALM IALM IALM (2012-14) (2012-14) (2012-14) (2006-08) (2006-08) Discount Rate 7.00% 6.75% 6.75% 7.75% 7.60% Future Salary Increase 6.50% 6.50% 6.50% 8.00% 8.00% Description of Risk Exposures: Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow - A) Salary Increases- Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability. B) Investment Risk - If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability. C) Discount Rate- Reduction in discount rate in subsequent valuations can increase the plan’s liability. D) Mortality & disability- Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities. E) Withdrawals – Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability. Table – 2: Change in Present Value of Obligations (PVO) (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Sick Leave Post Others- Leave (EL) (HPL) Retirement Baggage Medical Allowance/ Benefit Long Service (PRMB) Award/FBS PVO at the beginning of the year 189.99 66.18 116.13 87.30 14.29 {191.01} {56.07} {109.06} {79.85} {12.63} Interest cost 12.82 4.47 7.84 5.89 0.96 {12.89} {3.78} {7.36} {5.39} {0.85} Past service cost 0.00 {1.18} Current service cost 3.95 13.66 4.23 2.61 1.13 {5.08} {13.38} {4.69} {2.56} {1.15} Benefit paid (20.49) (15.59) (6.34) (4.71) (2.34) {(17.94)} {(13.31)} {(4.11)} {(3.42)} {(1.33)} Actuarial (Gain)/loss (2.89) 8.15 (3.21) 4.42 0.22 {(1.05)} {6.26} {(0.88)} {2.93} {(0.20)} PVO at the end of the year 183.38 76.88 118.64 95.51 14.26 {189.99} {66.18} {116.13} {87.30} {14.29} 285 Consolidated Financial Statements Table – 3: Amount recognized in Balance Sheet (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Sick Leave Post Others- Leave (EL) (HPL) Retirement Baggage Medical Allowance/ Benefit Long Service (PRMB) Award/FBS PVO at the end of the year 183.38 76.88 118.64 95.51 14.26 {189.99} {66.18} {116.13} {87.30} {14.29} Fair Value of Plan NA NA NA 89.61 NA Assets at the end of year {83.01} Funded Laib./Prov Nil Nil Nil 89.61 Nil {83.01} Unfunded Laib./Prov 183.38 76.88 118.64 5.91 14.26 {189.99} {66.18} {116.13} {4.29} {14.29} Unrecognised actuarial gain/loss Net liability recognized in the Balance 183.38 76.88 118.64 5.91 14.26 Sheet {189.99} {66.18} {116.13} {4.29} {14.29} Table – 4: Amount recognized in Statement of Profit & Loss, OCI & EDC . (Figures in Parenthesis represent Previous Year Balances) (` in Cr.) Particular Gratuity Earned Sick Leave Post Others- Leave (EL) (HPL) Retirement Baggage Medical Allowance/ Benefit Long Service (PRMB) Award/FBS Current Service Cost 3.95 13.66 4.23 2.61 1.13 {5.08} {13.38} {4.69} {2.56} {1.15} Past Service Cost - - - - 0.00 {1.18} Interest Cost 12.82 4.47 7.83 - 0.96 {12.89} {3.78} {7.36} {0.39} {0.85} Net Actuarial (gain)/loss recognized (2.89) 8.15 (3.21) 4.42 0.22 for the year in OCI {(1.05)} {6.26} {(0.88)} {2.93} {(0.20)} Expense recognized Statement in 16.77 26.28 8.85 2.61 2.09 Profit & Loss/EDC for the year. {17.97} {23.42} {11.18} {2.95} {3.19} 286 Table – 5: Sensitivity analysis (` in Cr.) Impact due to Gratuity Earned Leave (EL) Sick Leave (HPL) PRMB Others 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 31.03.22 31.03.21 Discount rate Consolidated Financial Statements Increase of (4.62) (5.09) (2.27) (2.09) (3.00) (3.20) (12.32) (10.17) (0.36) (0.38) 0.50% Decrease of 4.86 5.36 2.41 2.23 3.14 3.37 12.54 10.34 0.37 0.39 0.50% Salary rate Increase of 1.02 1.24 2.41 2.22 3.14 3.36 NA NA NA NA 0.50% Decrease of (1.09) (1.34) (2.29) (2.10) (3.02) (3.22) NA NA NA NA 0.50% Medical cost /settlement cost rate Increase of NA NA NA NA NA NA 12.62 10.37 0.16 0.18 0.50% Decrease of NA NA NA NA NA NA (12.38) (10.21) (0.16) (0.17) 0.50% Other disclosures: (` in Cr.) Gratuity 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the end of the year 183.38 189.99 191.01 178.93 174.87 Actuarial (Gain)/loss (2.89) (1.05) 8.74 (0.12) (7.85) Actuarial (Gain)/loss recognized through (2.89) (1.05) 8.74 (0.12) (7.85) Statement of OCI Expense recognized in Statement of Profit & 16.77 17.97 19.68 19.35 19.59 Loss/EDC for the year 287 Earned Leave (EL) 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 288 Present value of obligation at the end of the year 76.88 66.18 56.07 43.04 27.72 Actuarial (Gain)/loss 8.15 6.26 11.60 11.38 4.52 Expense recognized in Statement of Profit & Loss/ 26.28 23.42 27.71 25.85 10.03 EDC for the year Sick Leave (HPL) 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the end of the year 118.64 116.13 109.06 98.83 88.81 Actuarial (Gain)/loss (3.21) (0.88) 0.83 1.78 (46.16) Expense recognized in Statement of Profit & Loss/ 8.85 11.18 13.00 12.79 (32.84) EDC for the year Post Retirement Medical Benefit (PRMB) 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Present value of obligation at the end of the year 95.51 87.30 79.85 70.02 62.70 Unrecognised Actuarial (Gain)/loss 3.29 1.34 2.76 3.85 1.22 Expense recognized in Statement of Profit & Loss/ 2.61 2.95 3.07 6.94 6.44 EDC for the year Others-Baggage Allowance/ 31.03.2022 31.03.2021 31.03.2020 31.03.2019 31.03.2018 Long Service Award/FBS Present value of obligation at the end of the year 14.26 14.29 12.63 12.43 8.92 Actuarial (Gain)/loss 0.22 (0.20) 0.43 (0.29) (0.28) Actuarial (Gain)/loss recognized through 0.22 (0.20) 0.43 (0.29) (0.28) Statement of OCI Expense recognized in Statement of Profit & Loss/ 2.09 3.19 2.14 5.16 1.38 EDC for the year Consolidated Financial Statements Consolidated Financial Statements 26. a) The Company has a system of obtaining periodic confirmation of balances from banks and other parties. There are no unconfirmed balances in respect of bank accounts and borrowings from banks & financial institutions. With regard to receivables for energy sales, the Company sends demand intimations to the beneficiaries with details of amount paid and balance outstanding which can be said to be automatically confirmed on receipts of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers are generally done on 31st December. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters with the negative assertion as referred in the Standarad on Auditing (SA) 505 (Revised) “External Confirmatios”, were sent to the parties. Some of such balances are subject to confirmation/reconciliation. Adjustment, if any will be accounted for on confirmation/reconciliation of the same, which in the opinion of the management will not have a material impact. b) In the opinion of the management, the value of assets, other than property, plant & equipment and non-current investments, on realisation in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet. 27. Payment to Auditors (including GST) (` in Cr.) Sl. Description 2021-22 2020-21 I. Statutory Audit Fees* 0.17 0.17 II. For Taxation matter (Tax Audit) 0.03 0.03 III. For Company Law matter IV. For Management services V. For other Services (Certification) 0.07 0.06 VI. For Reimbursement of expenditure 0.05 0.03 Payments to the Auditors includes ` 0.01 Cr. (` 0.02 Cr.) relating to earlier year. *Subject to approval in Annual General Meeting. Sl. Description 2021-22 2020-21 THDC TUSCO Total THDC TUSCO Total I. Statutory Audit Fees 0.15 0.02 0.17 0.15 0.02 0.17 II. For Taxation matter (Tax Audit) 0.03 0.00 0.03 0.03 0.00 0.03 III. For Company Law matter 0.00 0.00 0.00 0.00 0.00 0.00 IV. For Management services 0.00 0.00 0.00 0.00 0.00 0.00 V. For other Services(Certification) 0.07 0.00 0.07 0.06 0.00 0.06 VI. For Reimbursement of exp. 0.05 0.00 0.05 0.03 0.00 0.03 Total (` in Lakhs) 0.30 0.02 0.32 0.27 0.02 0.29 28. a) Reconciliation of Cash & Cash Equivalents between Cash Flow Statement and Balance Sheet is as under: (` in Cr.) Particulars Note No 31.03.2022 31.03.2021 Cash And Cash Equivalents 12 90.33 232.30 Add: Bank Balances under Lien 13 0.00 Less: Over Draft Balance incl.STL 26 926.10 0.00 Cash & Cash Equivalent as per (835.77) 232.30 Cash Flow Statement In March 2017 the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules 2017 notifying amendments to Ind AS 7 ‘Statement of cash flows’. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7 ‘Statement of cash flows’. The amendments are applicable to the company from April 1 2017 and they introduce additional disclosures that will enable users of financial statements to evaluate changes in liabilities arising from financing activities including both changes arising from cash flows and non-cash changes suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities to meet the disclosure requirement. 289 Consolidated Financial Statements (` in Cr.) Cash flow from Financing Opening Current Year Closing Change Remarks Activities (2021-22) Share Capital Issued 3665.88 3665.88 (Including pending allotment) Non controlling int. 2.53 2.33 4.86 2.33 Borrowings-Non Current 5014.22 1639.76 6653.98 1639.76 Addition- Bonds – ` 1200.00 (Bonds & other secured Cr.,Term Loan (BOB) ` 675.00 Loans) Cr., World Bank (Net ) ` 12.96 Cr., Repayment – Term Loan – ` 107.80 Cr., Term Loan (PNB) ` 140.40 Cr. Borrowings- Current 1233.51 (806.88) 426.63 (806.88) Addition-,Term Loan (BOB) ` 125.00 Cr., World Bank (Net) ` 3.61 Cr., Repayment- STL (SBI,Axis Bank & HDFC Bank) ` 700.00 Cr., Term Loan (REC/PFC) ` 235.49 Cr. Lease Liability 13.59 72.09 85.68 72.09 Net addition in Lease Liab ` 72.09 Cr. Interest on Loans Finance costs paid 494.27 (360.16) (134.11) Charged to Statament of P&L Less capitalized –CWIP Grant 0.50 0.50 Late Payment Surcharge 225.46 225.46 Other income Dividend paid (508.20) (508.20) Payment of Dividend Net Cash flow from financing 490.95 29. Disclosure as per Schedule III to the Companies Act,2013 Name of the entity Net Assets, i.e., total Share in profit or loss for Share in other Share in total in the Group assets minus total the year ended comprehensive income for comprehensive income for liabilities as at the year ended the year ended As % age of (` in As % age of (` in Cr.) As % age of (` in Cr.) As % age (` in Cr.) consolidated Cr.) consolidated consolidated of total net assets profit or loss other comprehensive comprehensive income income THDC India Limited 31-Mar-22 99.95% 10305.20 100.03% 894.01 100% 2.14 100.05% 896.15 31-Mar-21 99.97% 9917.24 100.01% 1092.22 100% 0.31 100.01% 1092.53 Subsidiary TUSCO Ltd. 31-Mar-22 0.05% 4.86 (0.03%) (0.26) (0.05%) (0.26) 31-Mar-21 0.026% 2.53 (0.01%) (0.07) (0.01%) (0.07) Total 31-Mar-22 100% 10310.06 100% 893.75 100% 2.14 100% 895.89 31-Mar-21 100% 9919.77 100% 1092.15 100% 0.31 100% 1092.46 290 Consolidated Financial Statements 30. PY figures have been regrouped/ reclassified wherever necessary to make the figures comparable with the figures of the current year. For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 291 Consolidated Financial Statements FORM NO. AOC.1 Statement containing salient features of the financial statements of Subsidiaries/Associate Companies/Joint Ventures of THDC India Ltd. (Pursuant to first proviso to sub-section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014) Part “A”: Subsidiaries ` in Cr. 1 Name of the Subsidiary TUSCO Ltd. 2 The date since when subsidiary was acquired 12.09.2020* 3 Reporting period for the subsidiary concerned, if different Same as that of Holding Company from the holding company’s reporting period (01.04.2021- 31.03.2022) 4 Reporting currency and exchange rate as on the NA last date of the relevant financial year in the case of foreign subsidiaries. 5 Share capital 20.00 6 Reserves & surplus/(Accumulated losses) (1.29) 7 Total assets 73.54 8 Total liabilities 54.83 9 Investments 0.00 10 Turnover/Other income 0.10 11 Total Expenses 1.56 12 Profit /(loss)before taxation (1.46) 13 Provision for taxation 0.43 14 Profit /(loss)after taxation (1.03) 15 Proposed dividend 0.00 16 % of Shareholding 0.74 (*) Date of incorporation Part ”B” : Associates and Joint Ventures Nil For and on Behalf of Board of Directors Sd/- Sd/- Sd/- (Rashmi Sharma) (J. Behera) (R. K. Vishnoi) Company Secretary Director (Finance)/ CFO Chairman & Managing Director Membership No.: 26692 DIN:08536589 DIN:08534217 Date: 13.05.2022 Place: Rishikesh As Per Our Report Of Even Date Attached FOR S.N. Kapur & Associates Chartered Accountants FRN 001545C of ICAI Sd/- (CA. S.N. Kapur) Date: 13.05.2022 Partner Place: Lucknow Membership No.:-014335 292 Consolidated Financial Statements INDEPENDENT AUDITORS’ REPORT To, consolidated cash flows for the year ended on that date. The Members of THDC INDIA LIMITED Basis for Opinion Report on the Audit of the Consolidated Financial Statements We conducted our audit of the Consolidated Financial Statements in accordance with the Standards on Auditing (SAs) specified under Opinion section 143(10) of the Act. Our responsibilities under those Standards We have audited the accompanying Consolidated Financial are further described in the Auditor’s Responsibilities for the Audit of Statements of THDC India Limited (hereinafter referred to as “the the Consolidated Financial Statements section of our report. We are Holding Company”) and its subsidiary (the Holding Company and its independent of the Group in accordance with the ‘Code of Ethics’ subsidiary together referred to as “the Group”), which comprise the issued by the Institute of Chartered Accountants of India (ICAI) Consolidated Balance Sheet as at 31 March, 2022, the Consolidated together with the ethical requirements that are relevant to our audit of Statement of Profit and Loss (including Other Comprehensive the Consolidated Financial Statements under the provisions of the Act Income), the Consolidated Statement of Changes in Equity and the and the Rules made thereunder, and we have fulfilled our other ethical Consolidated Statement of Cash Flows for the year then ended, and responsibilities in accordance with these requirements and the ICAI’s notes to the Consolidated Financial Statements, including a summary Code of Ethics. We believe that the audit evidence we have obtained is of the significant accounting policies and other explanatory information sufficient and appropriate to provide a basis for our audit opinion on the (hereinafter referred to as “Consolidated Financial Statements”). Consolidated Financial Statements. In our opinion and to the best of our information and according to Key Audit Matters the explanations given to us, the aforesaid Consolidated Financial Key audit matters are those matters that, in our professional judgment, Statements give the information required by the Companies Act, 2013 were of most significance in our audit of the consolidated financial (“the Act”) in the manner so required and give a true and fair view statements of the current period. These matters were addressed in in conformity with the Indian Accounting Standards prescribed under the context of our audit of the consolidated financial statements as a section 133 of the Act read with the Companies (Indian Accounting whole, and in forming our opinion thereon, and we do not provide a Standards) Rules, 2015, as amended, (“Ind AS”) and the accounting separate opinion on these matters. For each matter below, description principles generally accepted in India, of the consolidated state of of how our audit addressed the matter is provided in that context. The affairs (financial position) of the Group as at March 31, 2022, and below mentioned key audit matters pertains to Holding Company as their consolidated net profit (financial performance including other the other auditor of the component has not given any key audit matters comprehensive income), their consolidated changes in equity and in their report :- Sl. No. Key Audit Matters Addressing the Key Audit Matters 1. Recognition and Measurement of Revenue for Sale of Energy We have obtained an understanding of the CERC Tariff Regulations, orders, circulars, guidelines and the Company’s The Company records revenue from sale of energy as per the internal circulars and procedures in respect of recognition and principles enunciated under Ind AS 115, based on tariff rates measurement of revenue from sale of energy comprising of approved by the Central Electricity Regulatory Commission (CERC). capacity and energy charges and adopted the following audit However, in cases where tariff rates are yet to be approved, procedures: provisional rates are adopted considering the applicable CERC Tariff Regulations. - Evaluated and tested the effectiveness of the Company’s design of internal controls relating to recognition and measurement of This is considered as key audit matter due to the nature and extent of revenue from sale of energy. estimates made as per the CERC Tariff Regulations, which leads to recognition and measurement of revenue from sale of energy being - Verified the accounting of revenue from sale of energy based complex and judgmental. on tariff rates approved by the CERC. (Refer Note No. 33 to the Consolidated Financial Statements, read Based on the above procedure performed, the recognition and with the Significant Accounting Policy No. 15) measurement of revenue from sale of energy are considered to be adequate and reasonable. 293 Consolidated Financial Statements Sl. No. Key Audit Matters Addressing the Key Audit Matters 2. Contingent Liabilities There are a number of litigations pending before various forums We have obtained an understanding of the Holding Company’s against the company and the management’s judgment is required internal instructions and procedures in respect of estimation for estimating the amount to be disclosed as contingent liability. and disclosure of contingent liabilities and adopted the following We identified this as a key audit matter because the estimates audit procedures: on which these amounts are based involve a significant degree - understood and tested the design and operating effectiveness of management judgment in interpreting the cases and it may be of controls as established by the management for obtaining all subject to management bias. relevant information for pending litigation cases; (Refer Note No. 43.2 to the Consolidated Financial Statements, read - discussed with the management any material developments with the Significant Accounting Policy No. 14) and latest status of legal matters; - read various correspondences and related documents pertaining to litigation cases and relevant external legal opinions obtained by the management and performed substantive procedures on calculations supporting the disclosure of contingent liabilities; - examined management’s judgements and assessments whether provisions are required; - considered the management assessments of those matters that are not disclosed as the probability of material outflow is considered to be remote; - reviewed the adequacy and completeness of disclosures; Based on the above procedures performed, the estimation and disclosures of contingent liabilities are considered to be adequate and reasonable. Emphasis of Matter have been audited by its respective independent auditor whose report Considering the requirement of Standard on Auditing (SA 600) on has been furnished to us by the management and our opinion on the ‘Using the work of Another Auditor’ including materiality, we draw Consolidated Financial Statement, in so far as it relates to the aforesaid attention to the following matters in the notes to the Consolidated subsidiary is based solely on the report of the other auditor and the Financial Statements: procedures performed by us are as stated in Auditors’ Responsibility section after considering the requirement of Standard on Auditing (SA a) Para 7 (i) and (ii) of Note No. 43 of the Consolidated Financial 600) on ‘Using the work of Another Auditor’ including materiality. Statements regarding delay in completion of VPHEP and Tehri PSP projects of the Holding Company owing to factors beyond Our opinion is not modified in respect of this matter. control of company. Further, considering the acute financial crisis Information Other than the Consolidated Financial Statements and of M/s HCC, Board of Directors of the Company have approved Auditors’ Report Thereon arrangement of gap funding to contractor for expeditious The Holding Company’s Board of Directors is responsible for the completion of projects with financial regulation. preparation of the other information. The other information comprises b) Para 5 (ii) of Note No. 43 of the Consolidated Financial the information included in the Annual Report related to the Consolidated Statements regarding 1244.095 Hac land acquired for various Financial Statements, but does not include the Consolidated Financial projects is being used for project works by THDCIL. The title deed Statements and our auditor’s report thereon. The other information is of such land is yet to be executed. expected to be made available to us after the date of this auditor’s Further, out of the above land, 44.429 Hac of Civil Soyam Land report. amounting to ` 49.03 crore recognised in the FY 2020-21 has Our opinion on the Consolidated Financial Statements does not cover been reversed during the current financial year. the other information and we do not express any form of assurance c) Note 43.26 (a) of the Consolidated Financial Statements regarding conclusion thereon. the balances in accounts of trade/ other payables and loans and In connection with our audit of the Consolidated Financial Statements, advances etc. including those balances appearing under current our responsibility is to read the other information and, in doing so, assets, loans and advances and current liabilities are subject to consider whether the other information is materially inconsistent with confirmation and reconciliation. The financial statements do not the Consolidated Financial Statements or our knowledge obtained include the impact of adjustment, if any, which may arise out of during the course of our audit or otherwise appears to be materially the confirmation and reconciliation process. misstated. Our opinion is not modified in respect of these matters. When we read the other information, if we conclude that there is a Other Matter material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions, We did not audit the financial statements/ financial information of if required. subsidiary company included in the Consolidated Financial Statement, whose financial statements reflects total Assets of ` 73.54 crore; total Responsibility of Management and Those Charged with Governance Revenues of ` 0.10 crore and Net Cash Inflows amounting to ` 2.56 for the Consolidated Financial Statements crore for the year ended on that date, as considered in the Consolidated The Holding Company’s Board of Directors is responsible for Financial Statements. The financial statements of subsidiary company the preparation and presentation of these Consolidated Financial 294 Consolidated Financial Statements Statements in terms of the requirements of the Act, that give a true and Financial Control system in place and the operating effectiveness fair view of the consolidated financial position, consolidated financial of such controls. performance including other comprehensive income, consolidated • Evaluate the appropriateness of accounting policies used and the Statement of Changes in Equity and consolidated cash flows of the reasonableness of accounting estimates and related disclosures Group in accordance with the accounting principles generally accepted made by management. in India, including the Ind AS Accounting Standards specified under • Conclude on the appropriateness of Holding Company’s section 133 of the Act read with the Companies (Indian Accounting management’s use of the going concern basis of accounting Standards) Rules, 2015 as amended. The respective Board of Directors and, based on the audit evidence obtained, whether a material of the companies included in the Group are responsible for maintenance uncertainty exists related to events or conditions that may cast of adequate accounting records in accordance with the provisions of significant doubt on the ability of the Group to continue as a the Act for safeguarding the assets of the Group & for preventing and going concern. If we conclude that a material uncertainty exists, detecting frauds and other irregularities; the selection and application we are required to draw attention in our auditor’s report to the of appropriate accounting policies; making judgments and estimates related disclosures in the Consolidated Financial Statements or, that are reasonable and prudent; and the design, implementation if such disclosures are inadequate, to modify our opinion. Our and maintenance of adequate internal financial controls, that were conclusions are based on the audit evidence obtained up to the operating effectively for ensuring accuracy and completeness of the date of our auditor’s report. However, future events or conditions accounting records, relevant to the preparation and presentation of the may cause the Group to cease to continue as a going concern. Consolidated Financial Statements that give a true and fair view and are • Evaluate the overall presentation, structure and content of the free from material misstatement, whether due to fraud or error, which Consolidated Financial Statements, including the disclosures, have been used for the purpose of preparation of the Consolidated and whether the Consolidated Financial Statements represent the Financial Statements by the Directors of the Holding Company, as underlying transactions and events in a manner that achieves fair aforesaid. presentation. In preparing the Consolidated Financial Statements, the respective • Obtain sufficient appropriate audit evidence regarding the Board of Directors of the companies included in the Group are financial information of the entities or business activities within responsible for assessing the ability of the Group to continue as a going the Group to express an opinion on the consolidated financial concern, disclosing, as applicable, matters related to going concern statements. We are responsible for the direction, supervision and using the going concern basis of accounting unless management and performance of the audit of the financial statements of such either intends to liquidate the Group or to cease operations, or has no entities included in the consolidated financial statements of which realistic alternative but to do so. we are the independent auditors. For the other entity included in The respective Board of Directors of the companies included in the the consolidated financial statements, which have been audited Group are responsible for overseeing the financial reporting process by other auditor, such other auditor remain responsible for the of the Group. direction, supervision and performance of the audits carried out Auditor’s Responsibilities for the Audit of the Consolidated Financial by them. We remain solely responsible for our audit opinion. Statements We communicate with those charged with governance of the Holding Our objectives are to obtain reasonable assurance about whether the Company and such other entities included in the Consolidated Financial Consolidated Financial Statements as a whole are free from material Statements of which we are the independent auditors regarding, among misstatement, whether due to fraud or error, and to issue an auditor’s other matters, the planned scope and timing of the audit and significant report that includes our opinion. Reasonable assurance is a high audit findings, including any significant deficiencies in internal control level of assurance, but is not a guarantee that an audit conducted that we identify during our audit. in accordance with SAs will always detect a material misstatement We also provide those charged with governance with a statement when it exists. Misstatements can arise from fraud or error and are that we have complied with relevant ethical requirements regarding considered material if, individually or in the aggregate, they could independence, and to communicate with them all relationships reasonably be expected to influence the economic decisions of users and other matters that may reasonably be thought to bear on our taken on the basis of these Consolidated Financial Statements. independence, and where applicable, related safeguards. As part of an audit in accordance with SAs, we exercise professional From the matters communicated with those charged with governance, judgment and maintain professional skepticism throughout the audit. we determine those matters that were of most significance in the audit We also: of the Consolidated Financial Statements of the current period and • Identify and assess the risks of material misstatement of the are therefore the key audit matters. We describe these matters in our Consolidated Financial Statements, whether due to fraud or auditor’s report unless law or regulation precludes public disclosure error, design and perform audit procedures responsive to those about the matter or when, in extremely rare circumstances, we determine risks, and obtain audit evidence that is sufficient and appropriate that a matter should not be communicated in our report because the to provide a basis for our opinion. The risk of not detecting a adverse consequences of doing so would reasonably be expected to material misstatement resulting from fraud is higher than for outweigh the public interest benefits of such communication. one resulting from error, as fraud may involve collusion, forgery, Report on Other Legal and Regulatory Requirements intentional omissions, misrepresentations, or the override of 1. As required by Section 143(3) of the Act, based on our audit and internal control. on the consideration of report of the other auditor on separate • Obtain an understanding of internal control relevant to the audit financial statements, we report, to the extent applicable, that:. in order to design audit procedures that are appropriate in the a) We have sought and obtained all the information and circumstances. Under section 143(3)(i) of the Act, we are also explanations which to the best of our knowledge and belief responsible for expressing our opinion on whether the holding were necessary for the purposes of our audit of the aforesaid company and its subsidiary company have adequate Internal Consolidated Financial Statements. 295 Consolidated Financial Statements b) In our opinion, proper books of account as required by law any guarantee, security or the like on behalf of the Ultimate relating to preparation of the aforesaid Consolidated Financial Beneficiaries. Statements have been kept so far as it appears from our (b) The respective managements of the Company and its examination of those books and the reports of the other subsidiary which is company incorporated in India, whose auditors. financial statements have been audited under the Act have c) The Consolidated Balance Sheet, the Consolidated Statement represented to us and the other auditor of such subsidiary of Profit and Loss (including Other Comprehensive Income), that, to the best of their knowledge and belief, no funds have the Consolidated Statement of Changes in Equity and the been received by the company or any of such subsidiary Consolidated Statement of Cash Flows dealt with by this from any person(s) or entity(ies), including foreign entities Report are in agreement with the relevant books of account (“Funding Parties”), with the understanding, whether maintained for the purpose of preparation of the Consolidated recorded in writing or otherwise, that the company or any of Financial Statements. such subsidiary shall, directly or indirectly, lend or invest in d) In our opinion, the aforesaid Consolidated Financial other persons or entities identified in any manner whatsoever Statements comply with the Indian Accounting Standards by or on behalf of the Funding Party (“Ultimate Beneficiaries”) specified under Section 133 of the Act read with the or provide any guarantee, security or the like on behalf of the Companies (Indian Accounting Standards) Rules, 2015 as Ultimate Beneficiaries. amended. (c) Based on the audit procedures that have been considered e) In terms of Notification No. G.S.R. 463(E) dated 05th reasonable and appropriate in the circumstances performed June, 2015 issued by the Ministry of Corporate Affairs, by us and that performed by the auditor of subsidiary, which the provisions of Section 164 (2) of the Act regarding is company incorporated in India whose financial statements disqualification of directors, are not applicable to the Holding have been audited under the Act, nothing has come to our or company and its subsidiary Company. other auditor’s notice that has caused us or the other auditor f) With respect to the adequacy of the Internal Financial to believe that the representations under sub-clause (i) and Controls with reference to consolidated financial statements (ii) of Rule 11 (e) contain any material mis-statement. of the Holding Company and its subsidiary and the operating v. As stated in Note 19 to the consolidated financial statements, effectiveness of such controls, refer to our separate report in a) The final dividend of previous year, declared and paid during Annexure A; the year by the company is in compliance with section 123 g) As per Notification No. GSR 463(E) dated 5 June 2015 issued of the Companies Act, 2013. by the Ministry of Corporate Affairs, Government of India, b) The interim dividend declared and paid during the year Section 197 of the Act is not applicable to the Government by the company is in compliance with section 123 of the Companies. Accordingly, reporting in accordance with Companies Act, 2013. requirement of provisions of section 197(16) of the Act is c) The Board of Directors of the company have proposed final not applicable to the Holding company and its subsidiary. dividend for the year which is subject to the approval of the h) With respect to the other matters to be included in the Auditor’s shareholders at the ensuing Annual General Meeting. The Report in accordance with Rule 11 of the Companies (Audit amount of dividend proposed is in accordance with section and Auditors) Rules, 2014, as amended in our opinion and to 123 of the Act, as applicable. the best of our information and according to the explanations 2. With respect to the matters specified in paragraph 3(xxi) given to us:- of the Companies (Auditor’s Report) Order, 2020 (the i. The Consolidated Financial Statements disclose the impact “Order”/”CARO”) issued by the Central Government in terms of pending litigations on the consolidated financial position of Section 143 (11) of the Act, to be included in the Auditor’s of the Group – Refer Note 43.2 to the Consolidated Financial report, according to the information and explanation given Statements; to us, and based on the CARO reports issued by us for the ii. The Group did not have any material foreseeable losses on Company and its subsidiary included in the consolidated long term contracts including derivative contracts; financial statements of the Company, to which reporting iii. There were no amounts which were required to be transferred under CARO is applicable, we report that there are no to the Investor Education and Protection Fund by the Holding qualifications or adverse remarks in these CARO reports. company and its subsidiary. iv. (a) The respective managements of the Company and its For S.N. KAPUR & ASSOCIATES subsidiary which is company incorporated in India, whose Chartered Accountants financial statements have been audited under the Act have Firm’s ICAI Reg. No. 001545C represented to us and the other auditor of such subsidiary that, to the best of their knowledge and belief, no funds have Sd/- been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of (CA. S. N. KAPUR) funds) by the company or any of such subsidiary to or in Partner any other person(s) or entity (ies), including foreign entities M.No.:014335 (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or Date: 13.05.2022 indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or Place: Lucknow any of such subsidiary (“Ultimate Beneficiaries”) or provide UDIN: 22014335AIYDGP1592 296 Consolidated Financial Statements ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT (Referred to in paragraph 1(f) under the heading “Report on Other Legal and Regulatory Requirements” of our report of even date to the member of THDC India Ltd. on the Consolidated Financial Statements for the year ended 31.03.2022) Report on the Internal Financial Controls with reference to Consolidated Financial Statements under Clause(i) of sub section 3 of Section 143 of the Companies Act, 2013(“the Act”) In conjunction with our audit of the Consolidated Financial Statements Financial Statements included obtaining an understanding of internal of the Group as of and for the year ended 31 March 2022, we have financial controls with reference to Consolidated Financial Statements, audited the internal financial controls with reference to Consolidated assessing the risk that a material weakness exists, and testing and Financial Statements of THDC India Limited (hereinafter referred to as evaluating the design and operating effectiveness of internal control “the Holding Company”) and its subsidiary (the Holding Company and based on the assessed risk. The procedures selected depend on the its subsidiary together referred to as “the Group”), as of that date. auditor’s judgment, including the assessment of the risks of material misstatement of the Consolidated Financial Statements, whether due Management’s Responsibility for Internal Financial Controls to fraud or error. The respective Board of Directors of the Holding Company and its We believe that the audit evidence we have obtained and the audit subsidiary are responsible for establishing and maintaining internal evidence obtained by the other auditors of the subsidiary incorporated financial controls based on the internal control over financial reporting in India, in terms of their reports referred to in the ‘Other Matters’ criteria established by the Holding Company considering the essential paragraph is sufficient and appropriate to provide a basis for our audit components of internal control stated in the Guidance Note on opinion on the Company’s internal financial controls system with Audit of Internal Financial controls over Financial Reporting issued reference to Consolidated Financial Statements. by the Institute of Chartered Accountants of India (“ICAI”). These responsibilities include the design, implementation and maintenance Meaning of Internal Financial Controls with reference to Consolidated of adequate internal financial controls that were operating effectively Financial Statements for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies, the safeguarding of its assets, A company’s internal financial control with reference to Consolidated the prevention and detection of frauds and errors, the accuracy and Financial Statements is a process designed to provide reasonable completeness of the accounting records, and the timely preparation of assurance regarding the reliability of financial reporting and the reliable financial information, as required under the Act. preparation of Consolidated Financial Statements for external purposes in accordance with generally accepted accounting principles. A Auditor’s Responsibility company’s internal financial control with reference to Consolidated Financial Statements includes those policies and procedures that Our responsibility is to express an opinion on the Company’s internal (1) pertain to the maintenance of records that, in reasonable detail, financial controls with reference to Consolidated Financial Statement accurately and fairly reflect the transactions and dispositions of based on our audit. We conducted our audit in accordance with the the assets of the company; (2) provide reasonable assurance that Guidance Note on Audit of Internal Financial Controls over Financial transactions are recorded as necessary to permit preparation of Reporting (the “Guidance Note”) and the Standards on Auditing, both Consolidated Financial Statements in accordance with generally issued by ICAI and deemed to be prescribed under section 143(10) accepted accounting principles, and that receipts and expenditures of of the Companies Act 2013, to the extent applicable to an audit of the company are being made only in accordance with authorizations of internal financial controls, with reference to Consolidated Financial management and directors of the company; and (3) provide reasonable Statements. Those Standards and the Guidance Note require that we assurance regarding prevention or timely detection of unauthorized comply with ethical requirements and plan and perform the audit to acquisition, use, or disposition of the company’s assets that could obtain reasonable assurance about whether adequate internal financial have a material effect on the Consolidated Financial Statements. controls over consolidated financial reporting was established and maintained and if such controls operated effectively in all material Inherent Limitations of Internal Controls with reference to respects. Consolidated Financial Statements Our audit involves performing procedures to obtain audit evidence Because of the inherent limitations of internal financial controls with about the adequacy of the internal financial control with reference to reference to Consolidated Financial Statements, including the possibility Consolidated Financial Statements and their operating effectiveness. of collusion or improper management override of controls, material Our audit of internal financial controls with reference to Consolidated misstatements due to error or fraud may occur and not be detected. 297 Consolidated Financial Statements Also, projections of any evaluation of the internal financial controls with financial reporting criteria established by the Company considering the reference to Consolidated Financial Statements to future periods are essential components of internal control stated in the Guidance Note subject to the risk that the internal financial control with reference to on Audit of Internal Financial Controls Over Financial Reporting issued Consolidated Financial Statements may become inadequate because by ICAI. of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Other Matters Opinion Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls In our opinion and to the best of our information and according to the with reference to Consolidated Financial Statements of the Holding explanations given to us, the Holding Company and its subsidiary which company, in so far as it related to the subsidiary, is based on the are companies incorporated in India, have, in all material respects, an corresponding report of the auditor of such company incorporated in adequate internal financial controls with reference to Consolidated India. Financial Statements in place and such internal financial controls with reference to Consolidated Financial Statements were operating Our report is not modified in respect of above matter. effectively as at 31 March 2022, based on the internal controls over For S.N. KAPUR & ASSOCIATES Chartered Accountants Firm’s ICAI Reg. No. 001545C Sd/- (CA. S. N. KAPUR) Partner M.No.: 014335 Date: 13.05.2022 Place: Lucknow 298 Consolidated Financial Statements COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF THDC INDIA LIMITED FOR THE YEAR ENDED 31 MARCH 2022 The preparation of consolidated financial statements of THDC India Limited for the year ended 31 March 2022 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 auditor appointed by the Comptroller and Auditor General of India under sec 139 (5) read with section 129 (4) of the Act is responsible for expressing opinion on the financial statements under section 143 read with section 129 (4) of the Act based on independent audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is stated to have been done by them vide their Audit Report dated 13.05.2022. I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the consolidated financial statements of THDC India Limited for the year ended 31 March 2022 under section 143(6)(a) read with section 129 (4) of the Act. We conducted a supplementary audit of the financial statements of THDC India Limited and TUSCO Limited for the year ended on that date. This supplementary audit has been carried out independently without access to the working papers of the statutory auditor and is limited primarily to inquiries of the statutory auditor and company personnel and a selective examination of some of the accounting records. Based on my supplementary audit, I would like to highlight the following significant matters under section 143(6)(b) read with section 129 (4) of the Act which have come to my attention and which in my view are necessary for enabling a better understanding of the financial statements and the related audit report: Comment on Consolidated Financial Position Balance Sheet Other Current Liabilities ` 87.75 crore (Note 29) Capital work-in-progress ` 9467.50 crore (Note 3) Para 10 and 23 of Ind AS 37 stipulated to recognize a liability based on the present obligation which also involves the probability of an outflow of resources embodying economic benefits to settle that obligation. The Company did not recognize the liability of `19.53 crore as upfront amount, which the Company was required to deposit within 15 business days from the date of grant of mine opening permission from the Ministry of Coal, which was given to the Company on 15.02.2022. This resulted in understatement of both, Other Current Liabilities and Capital work-in-progress by ` 19.53 crore each. For and on behalf of the Comptroller & Auditor General of India Sd/- Place: New Delhi (D.K. Sekar) Dated: 15.07.2022 Director General of Audit (Energy), Delhi 299 Consolidated Financial Statements Management Explanation to Comment of the Comptroller and Auditor General of India under section 143 (6) (b) of The Companies Act, 2013 on the Consolidated Financial Statements of THDC India Limited for the year ended 31st March 2022 C&AG Comment Management Explanation Comment on Consolidated Financial Position It is to submit that the Coal Controller’s Organization, MoC had granted mine opening permission of Amelia Coal Mine on 15.02.2022 and District Mining Balance Sheet Officer, Singrauli informed vide letter dated 13.04.2022 that THDCIL has to deposit the Upfront amount in head “0853-00-102-0999 Concession, Fees, Other Current Liabilities ` 87.75 crore (Note 29) Rents& Royalties for Mining/Other Receipts” of MP Treasury. Considering Capital work-in-progress ` 9467.50 crore (Note 3) the fact that district mining officer has provided the details on 13.04.2022, i.e. during FY 2022-23 the liability for the same has not been provided. Para 10 and 23 of Ind AS 37 stipulated to recognize a liability based Since the Amelia coal mine is under development stage and all expenditure on the present obligation which also involves the probability of an incurred are carried forward as CWIP , therefore profitability of the Company outflow of resources embodying economic benefits to settle that is not affected. Further it is to submit that the amount under consideration obligation. is not material looking at the size of the Co. The Company did not recognize the liability of ` 19.53 crore as Further it is assured that in future, necessary care shall be taken to provide upfront amount, which the Company was required to deposit the liabilities in time. within 15 business days from the date of grant of mine opening permission from the Ministry of Coal, which was given to the Company on 15.02.2022. This resulted in understatement of both, Other Current Liabilities and Capital work-in-progress by ` 19.53 Crore each. 300