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You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
NTPC Ltd(Industry :   Power Generation And Supply)
 
BSE Code:532555NSE Symbol: NTPCP/E  (TTM): 14.28
ISIN Demat:INE733E01010Div Yield %:2.72EPS   (TTM) :12.31
Book Value (Rs):120.2713754Market Cap (RsCr):144914.04Face Value (Rs) :10
  Change Company 

Note 1. Company Information and Significant Accounting Policies

A. Reporting entity

NTPC Limited (the “Company”) is a Company domiciled in India and limited by shares (CIN: L40101DL1975GOI007966). The shares of the Company are publicly traded on the National Stock Exchange of India Limited and BSE Limited. The address of the Company's registered office is NTPC Bhawan, SCOPE Complex, 7 Institutional Area, Lodi Road, New Delhi - 110003. The Company is primarily involved in the generation and sale of bulk power to State Power Utilities. Other business includes providing consultancy, project management & supervision, oil & gas exploration and coal mining.

B. Basis of preparation

1. Statement of Compliance

These standalone financial statements are prepared on accrual basis of accounting and comply with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and subsequent amendments thereto, the Companies Act, 2013 (to the extent notified and applicable), applicable provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to the extent applicable. These are the Company's first Ind AS compliant financial statements and Ind AS 101 ‘First Time Adoption of Indian Accounting Standards' has been applied.

For all the periods upto and including 31 March 2016, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India, accounting standards specified under Section 133 of the Companies Act, 2013, the Companies Act, 2013 (to the extent notified and applicable), applicable provisions of the Companies Act, 1956, and the provisions of the Electricity Act, 2003 to the extent applicable. The Company followed the provisions of Ind AS 101 in preparing its opening Ind AS Balance Sheet as of the date of transition, viz. 1 April 2015. Some of the Company's Ind AS accounting policies used in the opening Balance Sheet are different from its previous GAAP policies applied as at 31 March 2015, and accordingly the adjustments were made to restate the opening balances as per Ind AS. The resulting adjustments arose from events and transactions before the date of transition to Ind AS. Therefore, as required by Ind AS 101, those adjustments were recognized directly through retained earnings as at 1 April 2015. This is the effect of the general rule of Ind AS 101 which is to apply Ind AS retrospectively.

An explanation of how the transition to Ind AS has affected the reported financial position, financial performance and cash flows of the Company is provided in Note 62.

These financial statements were authorized for issue by Board of Directors on 29 May 2017.

2. Basis of measurement

The financial statements have been prepared on the historical cost basis except for certain financial assets and liabilities (including derivative instruments) that are measured at fair value (refer accounting policy regarding financial instruments). The methods used to measure fair values are discussed further in notes to financial statements.

3. Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is the Company's functional currency. All financial information presented in INR has been rounded to the nearest crore (upto two decimals), except as stated otherwise.

4. Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is current when it is:

Expected to be realized or intended to be sold or consumed in normal operating cycle;

Held primarily for the purpose of trading;

Expected to be realized within twelve months after the reporting period; or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

It is expected to be settled in normal operating cycle;

It is held primarily for the purpose of trading;

It is due to be settled within twelve months after the reporting period; or

There is no unconditional right to defer settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets/liabilities are classified as non-current.

C. Significant accounting policies

A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all periods presented in the financial statements. The Company has elected to utilize the option under Ind AS 101 by not applying the provisions of Ind AS 16 & Ind AS 38 retrospectively and continue to use the previous GAAP carrying amount as a deemed cost under Ind AS at the date of transition to Ind AS. Therefore, the carrying amount of property, plant and equipment and intangible assets as per the previous GAAP as at 1 April 2015, i.e; the Company's date of transition to Ind AS, were maintained on transition to

Ind AS.

1. Property, plant and equipment

1.1. Initial recognition and measurement

Items of property, plant and equipment are initially recognized at cost. Subsequent measurement is done at cost less accumulated depreciation/amortization and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. When parts of an item of property, plant and equipment have different useful lives, they are recognized separately.

Deposits, payments/liabilities made provisionally towards compensation, rehabilitation and other expenses relatable to land in possession are treated as cost of land.

In the case of assets put to use, where final settlement of bills with contractors is yet to be effected, capitalization is done on provisional basis subject to necessary adjustment in the year of final settlement. Assets and systems common to more than one generating unit are capitalized on the basis of engineering estimates/assessments.

Expenditure on major inspection and overhauls of generating unit is capitalized, when it meets the asset recognition criteria. Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption.

1.2. Subsequent costs

Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.

The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is derecognized. The costs of the day-to-day servicing of property, plant and equipment are recognized in profit or loss as incurred.

1.3. Decommissioning costs

The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.

1.4. Derecognition

Property, plant and equipment is derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized in the statement of profit and loss.

1.5. Depreciation/amortization

Depreciation is recognized in statement of profit and loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation on the assets of the generation of electricity business and on the assets of Corporate & other offices is charged on straight line method following the rates and methodology notified by the CERC Tariff Regulations in accordance with Schedule II of the Companies Act, 2013.

Depreciation on the assets of the coal mining, oil & gas exploration and consultancy business is charged on straight line method following the useful life specified in Schedule II of the Companies Act, 2013 except for the assets referred in policy no. C.6.

Depreciation on the following assets is provided on their estimated useful life ascertained on technical evaluation:

a) Kutcha roads 02 years
b) Enabling works
- residential buildings 15 years
- internal electrification of residential buildings 10 years
- non-residential buildings including their internal electrification, water supply, sewerage & drainage works, railway sidings, aerodromes, helipads and airstrips. 05 years
c) Personal computers & laptops including peripherals 03 years
d) Photocopiers, fax machines, water coolers and refrigerators 05 years
e) Temporary erections including wooden structures 01 year
f) Telephone exchange 15 years
g) Wireless systems, VSAT equipments, display devices viz. projectors, screens, CCTV, audio video conferencing systems and other communication equipments 06 years

Major overhaul and inspection costs which have been capitalized are depreciated over the period until the next scheduled outage or actual major inspection/overhaul, whichever is earlier.

Leasehold land and buildings relating to generation of electricity business are fully amortized over lease period or life of the related plant whichever is lower following the rates and methodology notified by the CERC Tariff Regulations.

Leasehold land and buildings relating to Corporate and other offices are fully amortized over lease period or twenty-five years whichever is lower following the rates and methodology notified by the CERC Tariff Regulations. Land acquired for mining business under Coal Bearing Areas (Acquisition & Development) Act, 1957 is amortized on the basis of balance useful life of the project. Other leasehold land acquired for mining business is amortized over the lease period or balance life of the project whichever is less.

Depreciation on additions to/deductions from property, plant & equipment during the year is charged on pro-rata basis from/up to the month in which the asset is available for use/disposed.

Where the cost of depreciable assets has undergone a change during the year due to increase/decrease in long term liabilities on account of exchange fluctuation, price adjustment, change in duties or similar factors, the unamortized balance of such asset is charged off prospectively over the remaining useful life determined following the applicable accounting policies relating to depreciation/ amortization.

Where it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably, subsequent expenditure on a PPE along-with its unamortized depreciable amount is charged off prospectively over the revised useful life determined by technical assessment.

In circumstance, where a property is abandoned, the cumulative capitalized costs relating to the property are written off in the same period.

2. Capital work-in-progress

The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and borrowing costs.

Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost of related assets.

Deposit works/cost plus contracts are accounted for on the basis of statements of account received from the contractors.

Unsettled liabilities for price variation/exchange rate variation in case of contracts are accounted for on estimated basis as per terms of the contracts.

3. Intangible assets and intangible assets under development

3.1. Initial recognition and measurement

Intangible assets that are acquired by the Company, which have finite useful lives, are recognized at cost. Subsequent measurement is done at cost less accumulated amortization and accumulated impairment losses. Cost includes any directly attributable incidental expenses necessary to make the assets ready for its intended use.

Expenditure incurred which are eligible for capitalizations under intangible assets are carried as intangible assets under development till they are ready for their intended use.

3.2. Derecognition

An intangible asset is derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on disposal of an item of intangible assets are determined by comparing the proceeds from disposal with the carrying amount of intangible assets and are recognized in the statement of profit and loss.

3.3. Amortisation

Cost of software recognized as intangible asset, is amortized on straight line method over a period of legal right to use or 3 years, whichever is less. Other intangible assets are amortized on straight line method over the period of legal right to use or life of the related plant, whichever is less.

4. Regulatory deferral account balances

Expense/income recognized in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized as ‘Regulatory deferral account balances'.

Regulatory deferral accounts balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries.

5. Oil and gas exploration costs

5.1. Interest in Joint Operations

The Company has entered into joint arrangements with others for operations in the nature of joint operations. The Company recognizes, on a line-by-line basis its share of the assets, liabilities and expenses of these joint operations as per the arrangement which are accounted based on the respective accounting policies of the Company.

5.2. Intangible assets under development – Exploratory wells in progress

All exploration costs incurred in drilling and equipping exploratory and appraisal wells, cost of drilling exploratory type stratigraphic test wells are initially capitalized as ‘Exploratory wells-in-progress' till the time these are either transferred to Oil and Gas Assets on completion or expensed as exploration cost (including allocated depreciation) as and when determined to be dry or of no further use, as the case may be.

Costs of exploratory wells are not carried over unless it could be reasonably demonstrated that there are indications of sufficient quantity of reserves and sufficient progress is being made in assessing the reserves and the economic & operating viability of the project. All such carried over costs are subject to review for impairment as per the policy of the Company.

Survey costs - Cost of surveys and prospecting activities conducted in the search of oil and gas are expensed in the year in which these are incurred.

6. Development of coal mines

The costs of mining properties, which include the costs of acquiring and developing mining properties and mineral rights, are capitalized as ‘Mining properties' in the year in which they are incurred.

6.1. Mine development expenditure

Pre-production primary development expenditure (including stripping costs as mentioned below) other than land, buildings, plant & equipment is capitalized as capital work-in-progress as and when incurred until the mining property is capable of commercial production and then capitalised as part of the cost of the mining property. Development costs incurred after the commencement of production are capitalised to the extent they are expected to give rise to a future economic benefit. Mines under development are capitalised on occurrence of earliest of the following milestones except when commercial readiness is stated in the project report -a) From the beginning of the financial year immediately after the year in which the project achieves physical output of 25% of rated capacity as per approved project report; or b) From the beginning of the financial year in which the value of production is more than total expenses: or c) 2 years of touching of coal.

6.2. Stripping costs

Expenditure incurred on removal of overburden and other waste material necessary to extract the coal reserves is referred to as stripping cost.

6.3. Decommissioning costs

Decommissioning costs – Costs to decommission the mines are estimated at their present value based on approved mine closure plan of the Company and included in ‘Tangible assets - Mining properties'.

6.4. Amortisation

Mining properties are amortized over the life of the mine on a unit of production basis on stripping ratio. The stripping ratio for the life of the mine is obtained by dividing the estimated quantity of overburden by the estimated quantity of mineable coal reserve to be extracted over the life of the mine. This ratio is periodically reviewed and changes, if any, are accounted for prospectively.

7. Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction/exploration/ development or erection of qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready for their intended use. Qualifying assets are assets which take a substantial period of time to get ready for their intended use or sale.

When the Company borrows funds specifically for the purpose of obtaining a qualifying asset, the borrowing costs incurred are capitalized. When Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the capitalization of the borrowing costs is computed based on the weighted average cost of general borrowing that are outstanding during the period and used for the acquisition, construction/exploration or erection of the qualifying asset. Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs eligible for capitalization. Borrowing costs include exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

Other borrowing costs are recognized as an expense in the year in which they are incurred.

8. Inventories

Inventories are valued at the lower of cost and net realizable value. Cost includes cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis. Costs of purchased inventory are determined after deducting rebates and discounts. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

The diminution in the value of obsolete, unserviceable and surplus stores & spares is ascertained on review and provided for.

9. Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

10. Government grants

Government grants are recognized initially as deferred income when there is reasonable assurance that they will be received and the Company will comply with the conditions associated with the grant. Grants that compensate the Company for the cost of an asset are recognized in profit or loss on a systematic basis over the useful life of the related asset. Grants that compensate the Company for expenses incurred are recognized over the period in which the related costs are incurred and deducted from the related expenses.

11. Fly ash utilization reserve fund

Proceeds from sale of ash/ash products along-with income on investment of such proceeds are transferred to ‘Fly ash utilization reserve fund' in terms of provisions of gazette notification dated 3 November 2009 issued by Ministry of Environment and Forests, Government of India. The fund is utilized towards expenditure on development of infrastructure/facilities, promotion & facilitation activities for use of fly ash.

12. Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.

13. Foreign currency transactions and translation

Transactions in foreign currencies are initially recorded at the functional currency spot rates at the date the transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss in the year in which it arises with the exception that exchange differences on long term monetary items related to acquisition of property, plant & equipment recognized upto 31 March 2016 are adjusted to carrying cost of property, plant & equipment. Non-monetary items are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

14. Revenue

Company's revenues arise from sale of energy, consultancy, project management & supervision services and other income. Revenue from sale of energy is mostly regulated and governed by the applicable CERC Tariff Regulations under Electricity Act, 2003. Certain revenue from sale of energy is recognized based on the rates & terms and conditions mutually agreed with the beneficiaries and trading of power through power exchanges. Revenue from other income comprises interest from banks, employees, contractors etc., dividend from investments in joint venture and subsidiary companies, dividend from mutual fund investments, surcharge received from customers for delayed payments, sale of scrap, other miscellaneous income, etc.

14.1. Revenue from sale of energy

The majority of the Company's operations in India are regulated under the Electricity Act, 2003. Accordingly, the CERC determines the tariff for the Company's power plants based on the norms prescribed in the tariff regulations as applicable from time to time. Tariff is based on the capital cost incurred for a specific power plant and primarily comprises two components: capacity charge i.e. a fixed charge, that includes depreciation, return on equity, interest on working capital, operating & maintenance expenses, interest on loan and energy charge i.e. a variable charge primarily based on fuel costs.

Revenue from the sale of energy is measured at the fair value of the consideration received or receivable. Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement, and the amount of revenue can be measured reliably.

Revenue from sale of energy is accounted for based on tariff rates approved by the CERC (except items indicated as provisional) as modified by the orders of Appellate Tribunal for Electricity to the extent applicable. In case of power stations where the tariff rates are yet to be approved/items indicated provisional by the CERC in their orders, provisional rates are adopted considering the applicable CERC Tariff Regulations. Revenue from sale of energy is recognized once the electricity has been delivered to the customer and is measured through a regular review of usage meters. Customers are billed on a periodic and regular basis. As at each reporting date, revenue from sale of energy includes an accrual for sales delivered to customers but not yet billed i.e. unbilled revenue. The incentives/disincentives are accounted for based on the norms notified/approved by the CERC as per principles enunciated in Ind AS 18. In cases of power stations where the same have not been notified/ approved, incentives/disincentives are accounted for on provisional basis.

Part of revenue from sale of energy is recognized based on the rates & terms and conditions mutually agreed with the beneficiaries and trading of power through power exchanges.

Rebates allowed to beneficiaries as early payment incentives are deducted from the amount of revenue. Advance against depreciation considered as deferred revenue in earlier years is included in sales, to the extent depreciation recovered in tariff during the year is lower than the corresponding depreciation charged. Exchange differences arising from settlement/translation of monetary items denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per the CERC Tariff Regulations are accounted as ‘Regulatory deferred account balances' and adjusted from the year in which the same becomes recoverable/payable.

Exchange differences on account of translation of foreign currency borrowings recognized upto 31 March 2016, recoverable from or payable to the beneficiaries in subsequent periods as per the CERC Tariff Regulations are accounted as ‘Deferred foreign currency fluctuation asset'. The increase or decrease in depreciation for the year due to the accounting of such exchange differences as mentioned above is adjusted in depreciation. Fair value changes in respect of forward exchange contracts of derivative contracts recoverable from/payable to the beneficiaries as per the CERC Tariff Regulations, are recognized in sales.

14.2. Revenue from services

Revenue from consultancy, project management and supervision services rendered is recognized in profit or loss in proportion to the stage of completion of the transaction at the reporting date. The stage of completion is assessed by reference to actual progress/technical assessment of work executed, in line with the terms of the respective consultancy contracts. Claims for reimbursement of expenses are recognized as other income, as per the terms of the consultancy service contracts.

14.3.Other income

Interest income is recognized, when no significant uncertainty as to measurability or collectability exists, on a time proportion basis taking into account the amount outstanding and the applicable interest rate, using the effective interest rate method (EIR).

Scrap other than steel scrap is accounted for as and when sold.

Insurance claims for loss of profit are accounted for in the year of acceptance. Other insurance claims are accounted for based on certainty of realization.

Revenue from rentals and operating leases is recognized on an accrual basis in accordance with the substance of the relevant agreement.

For debt instruments measured either at amortized cost or at fair value through other comprehensive income (OCI), interest income is recorded using the EIR. EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset or to the amortized cost of a financial liability. When calculating the EIR, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses. Interest income is included in other income in the statement of profit and loss. The interest/surcharge on late payment/overdue sundry debtors for sale of energy is recognized when no significant uncertainty as to measurability or collectability exists.

Interest/surcharge recoverable on advances to suppliers as well as warranty claims wherever there is uncertainty of realization/acceptance are not treated as accrued and are therefore, accounted for on receipt/acceptance.

Dividend income is recognized in profit or loss on the date that the Company's right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

15. Employee benefits

15.1. Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into separate entities and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an employee benefits expense in profit or loss in the period during which services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan that are due after more than 12 months after the end of the period in which the employees render the service are discounted to their present value.

The Company has a defined contribution pension scheme which is administered through a separate trust. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer's contribution towards provident fund, gratuity, post retirement medical facility (PRMF) or any other retirement benefits. The contributions to the fund for the year are recognized as an expense and charged to the statement of profit and loss.

15.2. Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company's liability towards gratuity, pension scheme at two of the stations in respect of taken over employees from the erstwhile State Government Power Utility, post-retirement medical facility, baggage allowance for settlement at home town after retirement, farewell gift on retirement and provident fund scheme to the extent of interest liability on provident fund contribution are in the nature of defined benefit plans.

The Company pays fixed contribution to Provident Fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The contributions to the fund for the year are recognized as expense and are charged to the profit or loss. The obligation of the Company is to make such fixed contributions and to ensure a minimum rate of return to the members as specified by the Government of India (GoI).

The gratuity is funded by the Company and is managed by separate trust. Pension scheme at one of the taken over projects is also funded by the Company and is managed by separate trust. The Company has Post-Retirement Medical Facility (PRMF), under which retired employee and the spouse 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.

The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Company's obligations and that are denominated in the same currency in which the benefits are expected to be paid.

The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the total of any unrecognized past service costs and the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. An economic benefit is available to the Company if it is realizable during the life of the plan, or on settlement of the plan liabilities. Any actuarial gains or losses are recognized in OCI in the period in which they arise.

When the benefits of a plan are improved, the portion of the increased benefit relating to past service by employees is recognized in profit or loss on a straight-line basis over the average period until the benefits become vested. To the extent that the benefits vest immediately, the expense is recognized immediately in profit or loss.

15.3. Other long-term employee benefits

Benefits under the Company's leave encashment, long-service award and economic rehabilitation scheme constitute other long term employee benefits.

The Company's net obligation in respect of leave encashment is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Company's obligations. The calculation is performed using the projected unit credit method. Any actuarial gains or losses are recognized in profit or loss in the period in which they arise. As per the Company's economic rehabilitation scheme which is optional, the nominee of the deceased employee is paid a fixed amount based on the last salary drawn by the employee till the date of superannuation of the employee by depositing the final provident fund and gratuity amount which will be interest free.

15.4. Short-term benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under performance related pay if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

16. Other expenses

Expenses on ex-gratia payments under voluntary retirement scheme, training & recruitment and research & development are charged to the Statement of Profit and Loss in the year incurred.

Preliminary expenses on account of new projects incurred prior to approval of feasibility report/techno economic clearance are charged to Statement of Profit and Loss.

Net pre-commissioning income/expenditure is adjusted directly in the cost of related assets and systems. Transit and handling losses of coal as per Company's norms are included in cost of coal.

Voluntary community development expenditure is charged to Statement of Profit & Loss in the year incurred.

17. Income tax

Income tax expense comprises current and deferred tax. Current tax expense is recognized in profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. 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 have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority. Deferred tax is recognized in profit or loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Additional income taxes that arise from the distribution of dividends are recognized at the same time that the liability to pay the related dividend is recognized.

18. Leases

18.1. As lessee

Accounting for finance leases

Leases of property, plant and equipment where the Company, as lessee has substantially all risks and rewards of ownership are classified as finance lease. On initial recognition, assets held under finance leases are recorded as property, plant and equipment and the related liability is recognized under borrowings. At inception of the lease, finance leases are recorded at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments. Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability.

The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Accounting for operating leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating lease. Payments made under operating leases are recognized as an expense over the lease term. Lease incentives received are recognized as an integral part of the total lease expense, over the term of the lease.

18.2. As lessor

At inception of an arrangement, the Company determines whether such an arrangement is or contains a lease. A specific asset is subject of a lease if fulfillment of the arrangement is dependent on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement conveys to the customer the right to control the use of the underlying asset. Arrangements that do not take the legal form of a lease but convey rights to customers/suppliers to use an asset in return for a payment or a series of payments are identified as either finance leases or operating leases.

Accounting for finance leases

Where the Company determines a long term PPA to be or to contain a lease and where the off taker has the principal risk and rewards of ownership of the power plant through its contractual arrangements with the Company, the arrangement is considered a finance lease. Capacity payments are apportioned between capital repayments relating to the provision of the plant, finance income and service income. The finance income element of the capacity payment is recognized as revenue, using a rate of return specific to the plant to give a constant periodic rate of return on the net investment in each period. The service income element of the capacity payment is the difference between the total capacity payment and the amount recognized as finance income and capital repayments and recognized as revenue as it is earned. The amounts due from lessees under finance leases are recorded in the balance sheet as financial assets, classified as finance lease receivables, at the amount of the net investment in the lease.

Accounting for operating leases

Where the Company determines a long term PPA to be or to contain a lease and where the Company retains the principal risks and rewards of ownership of the power plant, the arrangement is considered an operating lease.

For operating leases, the power plant is capitalized as property, plant and equipment and depreciated over its economic life. Rental income from operating leases is recognized on a straight line basis over the term of the arrangement.

19. Impairment of non-financial assets

The carrying amounts of the Company's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets'. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”, or “CGU”). An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are reduced from the carrying amounts of the assets of the CGU. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

20. Operating segments

In accordance with Ind AS 108, the operating segments used to present segment information are identified on the basis of internal reports used by the Company's Management to allocate resources to the segments and assess their performance. The Board of Directors is collectively the Company's ‘Chief Operating Decision Maker' or ‘CODM' within the meaning of Ind AS 108. The indicators used for internal reporting purposes may evolve in connection with performance assessment measures put in place.

Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate expenses, finance expenses and income tax expenses. Revenue directly attributable to the segments is considered as segment revenue. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as segment expenses. Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill. Segment assets comprise property, plant and equipment, intangible assets, trade and other receivables, inventories and other assets that can be directly or reasonably allocated to segments. For the purpose of segment reporting for the year, property, plant and equipment have been allocated to segments based on the extent of usage of assets for operations attributable to the respective segments. Segment assets do not include investments, income tax assets, capital work in progress, capital advances, corporate assets and other current assets that cannot reasonably be allocated to segments.

Segment liabilities include all operating liabilities in respect of a segment and consist principally of trade and other payables, employee benefits and provisions. Segment liabilities do not include equity, income tax liabilities, loans and borrowings and other liabilities and provisions that cannot reasonably be allocated to segments.

21. Dividends

Dividends and interim dividends payable to a Company's shareholders are recognized as changes in equity in the period in which they are approved by the shareholders' meeting and the Board of Directors respectively.

22. Material prior period errors

Material prior period errors are corrected retrospectively by restating the comparative amounts for the prior periods presented in which the error occurred. If the error occurred before the earliest period presented, the opening balances of assets, liabilities and equity for the earliest period presented, are restated.

23. Earnings per share

Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

Basic and diluted earnings per equity share are also computed using the earnings amounts excluding the movements in regulatory deferral account balances.

24. Cash flow statement

Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS 7 ‘Statement of Cash Flows'.

25. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

25.1.Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition or issue of the financial asset.

Subsequent measurement

Debt instruments at amortized cost

A ‘debt instrument' is measured at the amortized cost if both the following conditions are met:

(a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and (b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss. This category generally applies to trade and other receivables.

Debt instrument at FVTOCI (Fair Value through OCI)

A ‘debt instrument' is classified as at the FVTOCI if both of the following criteria are met:

(a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

(b) The asset's contractual cash flows represent SPPI

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the OCI. However, the Company recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On derecognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Debt instrument at FVTPL (Fair value through profit or loss)

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization as at amortized cost or as FVTOCI, is classified as at FVTPL. In addition, the Company may elect to classify a debt instrument, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as ‘accounting mismatch'). Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Equity investments

All equity investments in entities other than subsidiaries and joint ventures are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the profit and loss.

Equity investments in subsidiaries and joint ventures are measured at cost.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily derecognised (i.e. removed from the Company's balance sheet) when:

The rights to receive cash flows from the asset have expired, or

The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through' arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

(a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

(b) Financial assets that are debt instruments and are measured as at FVTOCI.

(c) Lease receivables under Ind AS 17.

(d) Trade receivables under Ind AS 18.

(e) Loan commitments which are not measured as at FVTPL.

(f) Financial guarantee contracts which are not measured as at FVTPL.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

25.2. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs. The Company's financial liabilities include trade and other payables, borrowings including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at amortized cost

After initial measurement, such financial liabilities are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance costs in the profit or loss. This category generally applies to borrowings, trade payables and other contractual liabilities.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/losses attributable to changes in own credit risk are recognized in OCI. These gains/losses are not subsequently transferred to profit and loss. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognized in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Derivative financial instruments

Initial recognition and subsequent measurement.

The Company uses derivative financial instruments, such as forward currency contracts and interest rate swaps to hedge its foreign currency risks and interest rate risks of foreign currency loans. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken to statement of profit and loss.

D. Use of estimates and management judgments

The preparation of financial statements requires management to make judgments, estimates and assumptions that may impact the application of accounting policies and the reported value of assets, liabilities, income, expenses and related disclosures concerning the items involved as well as contingent assets and liabilities at the balance sheet date. The estimates and management's judgments are based on previous experience and other factors considered reasonable and prudent in the circumstances. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

In order to enhance understanding of the financial statements, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is as under:

1. Useful life of property, plant and equipment

The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

Useful life of the assets of the generation of electricity business is determined by the CERC Tariff Regulations in accordance with Schedule II of the Companies Act, 2013. The Company reviews at the end of each reporting date the useful life of property, plant and equipment, other than the assets of generation of electricity business which are governed by CERC Regulations, and are adjusted prospectively, if appropriate.

2. Recoverable amount of property, plant and equipment

The recoverable amount of plant and equipment is based on estimates and assumptions regarding in particular the expected market outlook and future cash flows associated with the power plants. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

3. Post-employment benefit plans

Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations.

4. Revenues

The Company records revenue from sale of energy based on tariff rates approved by the CERC as modified by the orders of Appellate Tribunal for Electricity, as per principles enunciated under Ind AS 18. However, in cases where tariff rates are yet to be approved, provisional rates are adopted considering the applicable CERC Tariff Regulations.

5. Leases not in legal form of lease

Significant judgment is required to apply lease accounting rules under Appendix C to Ind AS 17 ‘Determining whether an arrangement contains a lease'. In assessing the applicability to arrangements entered into by the

Company, management has exercised judgment to evaluate the right to use the underlying asset, substance of the transactions including legally enforceable agreements and other significant terms and conditions of the arrangements to conclude whether the arrangement needs the criteria under Appendix C to Ind AS 17.

6. Assets held for sale

Significant judgment is required to apply the accounting of non-current assets held for sale under Ind AS 105 ‘Non-current Assets Held for Sale and Discontinued Operations'. In assessing the applicability, management has exercised judgment to evaluate the availability of the asset for immediate sale, management's commitment for the sale and probability of sale within one year to conclude if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.

7. Provisions and contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets'. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter.

8. Impairment test of non-financial assets

The recoverable amount of investment in joint ventures is based on estimates and assumptions regarding in particular the future cash flows associated with the operations of the investee company. Any changes in these assumptions may have a material impact on the measurement of the recoverable amount and could result in impairment.

2. Non-current assets - Property, plant & equipment

As at 31 March 2017 Rs Crore

Particulars Gross block Depreciation/amortisation and impairment Net block
As at 01.04.2016 Additions Deductions/ adjustments As at 31.03.2017 Upto 01.04.2016 For the year Deductions/ adjustments Upto 31.03.2017 As at 31.03.2017 As at 31.03.2016
Land (including development expenses)
Freehold 6,793.98 188.86 (31.07) 7,013.91 - - - - 7,013.91 6,793.98
Leasehold 4,450.70 284.51 (173.54) 4,908.75 61.14 140.89 1.89 200.14 4,708.61 4,389.56
Under submergence (refer footnote e) 719.69 56.15 43.01 732.83 25.10 27.94 3.78 49.26 683.57 694.59
Roads, bridges, culverts & helipads 749.68 77.48 (51.74) 878.90 33.55 38.37 2.38 69.54 809.36 716.13
Building Freehold
Main plant 3,901.92 195.65 (18.59) 4,116.16 155.32 168.40 - 323.72 3,792.44 3,746.60
Others 2,439.73 337.65 (71.52) 2,848.90 128.58 147.06 3.18 272.46 2,576.44 2,311.15
Leasehold 18.91 - - 18.91 1.85 1.85 - 3.70 15.21 17.06
Temporary erection 2.54 5.45 (0.84) 8.83 2.38 5.72 - 8.10 0.73 0.16
Water supply, drainage & sewerage system 379.22 88.50 (5.58) 473.30 23.46 25.93 - 49.39 423.91 355.76
Hydraulic works, barrages, dams, tunnels and power channel 4,120.98 - (9.93) 4,130.91 163.19 218.52 - 381.71 3,749.20 3,957.79
MGR track and signalling system 946.57 27.12 (53.61) 1,027.30 58.55 65.28 - 123.83 903.47 888.02
Railway siding 649.75 64.97 (42.86) 757.58 34.99 45.15 - 80.14 677.44 614.76
Earth dam reservoir 161.68 44.76 (4.92) 211.36 10.28 12.11 - 22.39 188.97 151.40
Plant and equipment
Owned 70,742.09 11,237.96 (683.34) 82,663.39 4,952.15 5,523.07 32.37 10,442.85 72,220.54 65,789.94
Leased 85.77 - - 85.77 4.62 4.75 - 9.37 76.40 81.15
Furniture and fixtures 265.57 52.06 (21.49) 339.12 21.98 25.31 0.07 47.22 291.90 243.59
Vehicles including speedboats
Owned 7.45 3.39 0.26 10.58 0.92 1.04 0.07 1.89 8.69 6.53
Leased 2.19 1.23 0.17 3.25 0.33 0.75 0.08 1.00 2.25 1.86
Office equipment 130.68 32.98 1.31 162.35 24.52 19.69 0.32 43.89 118.46 106.16
EDP, WP machines and satcom equipment 141.88 135.21 4.05 273.04 74.19 47.33 5.24 116.28 156.76 67.69
Construction equipments 110.74 24.02 0.53 134.23 11.64 11.99 0.54 23.09 111.14 99.10
Electrical installations 356.66 69.60 (8.16) 434.42 21.82 24.35 0.72 45.45 388.97 334.84
Communication equipments 58.55 10.01 0.29 68.27 16.85 7.94 0.15 24.64 43.63 41.70
Hospital equipments 24.26 1.74 0.10 25.90 1.52 1.61 0.01 3.12 22.78 22.74
Laboratory and workshop equipments 70.81 15.38 (0.45) 86.64 3.71 5.01 - 8.72 77.92 67.10
Assets for ash utilisation 22.56 3.66 - 26.22 - - - - 26.22 22.56
Less: Adjusted from fly ash utilisation reserve fund 22.56 3.66 - 26.22 - - - - 26.22 22.56
Total 97,332.00 12,954.68 (1,127.92) 111,414.60 5,832.64 6,570.06 50.80 12,351.90 99,062.70 91,499.36

As at 31 March 2016

Particulars Gross block Depreciation/amortisation and impairment Net block
As at 01.04.2015 Additions Deductions/ adjustments As at 31.03.2016 Upto 01.04.2015 For the year Deductions/ adjustments Upto 31.03.2016 As at 31.03.2016 As at 01.04.2015
Land (including development expenses)
Freehold 6,523.21 527.69 256.92 6,793.98 - - - - 6,793.98 6,523.21
Leasehold 2,666.35 1,639.20 (145.15) 4,450.70 - 63.49 2.35 61.14 4,389.56 2,666.35
Under submergence (refer footnote e) - - (719.69) 719.69 - 22.65 (2.45) 25.10 694.59 -
Roads, bridges, culverts & helipads 591.62 125.11 (32.95) 749.68 - 32.89 (0.66) 33.55 716.13 591.62
Building
Freehold
Main plant 3,390.26 417.20 (94.46) 3,901.92 - 158.42 3.10 155.32 3,746.60 3,390.26
Others 1,961.51 404.25 (73.97) 2,439.73 - 127.51 (1.07) 128.58 2,311.15 1,961.51
Leasehold 18.91 - - 18.91 - 1.85 - 1.85 17.06 18.91
Temporary erection 1.12 4.35 2.93 2.54 - 3.13 0.75 2.38 0.16 1.12
Water supply, drainage & sewerage system 356.94 21.39 (0.89) 379.22 - 23.45 (0.01) 23.46 355.76 356.94
Hydraulic works, barrages, dams, tunnels and power channel - 4,103.50 (17.48) 4,120.98 - 163.22 0.03 163.19 3,957.79 -
MGR track and signalling 818.82 75.17 (52.58) 946.57 - 58.55 - 58.55 888.02 818.82
system
Railway siding 513.12 110.07 (26.56) 649.75 - 34.99 - 34.99 614.76 513.12
Earth dam reservoir 151.02 10.40 (0.26) 161.68 - 10.28 - 10.28 151.40 151.02
Plant and equipment
Owned 60,112.68 8,181.45 (2,447.96) 70,742.09 - 4,805.38 (146.77) 4,952.15 65,789.94 60,112.68
Leased 55.77 30.00 - 85.77 - 4.62 - 4.62 81.15 55.77
Furniture and fixtures 206.66 56.19 (2.72) 265.57 - 21.74 (0.24) 21.98 243.59 206.66
Vehicles including speedboats
Owned 6.82 0.99 0.36 7.45 - 0.95 0.03 0.92 6.53 6.82
Leased - 2.13 (0.06) 2.19 - 0.33 - 0.33 1.86 -
Office equipment 99.48 31.65 0.45 130.68 - 24.37 (0.15) 24.52 106.16 99.48
EDP, WP machines and satcom equipment 108.72 36.18 3.02 141.88 - 76.25 2.06 74.19 67.69 108.72
Construction equipments 90.63 28.30 8.19 110.74 - 11.90 0.26 11.64 99.10 90.63
Electrical installations 291.43 52.39 (12.84) 356.66 - 21.09 (0.73) 21.82 334.84 291.43
Communication equipments 45.51 12.50 (0.54) 58.55 - 16.85 - 16.85 41.70 45.51
Hospital Equipments 21.17 3.24 0.15 24.26 - 1.53 0.01 1.52 22.74 21.17
Laboratory and workshop equipments 50.87 20.05 0.11 70.81 - 3.71 - 3.71 67.10 50.87
Assets under 5 KM scheme of the GOI 70.76 - 70.76 - - - - - - 70.76
Assets for ash utilisation 17.30 4.29 (0.97) 22.56 - - - - 22.56 17.30
Less: Adjusted from fly ash utilisation reserve fund 17.30 5.26 - 22.56 - - - - 22.56 17.30
Total 78,153.38 15,892.43 (3,286.19) 97,332.00 - 5,689.15 (143.49) 5,832.64 91,499.36 78,153.38

a) The conveyancing of the title to 9,235 acres of freehold land of value Rs 1,940.44 crore (31 March 2016: 10,753 acres of value Rs 2,217.27 crore, 1 April 2015: 9,719 acres of value Rs 1,969.68 crore), buildings & structures of value Rs 4.97 crore (31 March 2016: Rs 4.97 crore, 1 April 2015: Rs 4.97 crore) and also execution of lease agreements for 12,570 acres of land of value Rs 1,869.67 crore (31 March 2016: 15,717 acres of value Rs 2,917.00 crore, 1 April 2015: 13,716 acres of value Rs 1,390.08 crore) in favour of the Company are awaiting completion of legal formalities.

b) Land does not include value of 34 acres (31 March 2016: 33 acres, 1 April 2015: 33 acres) of land in possession of the Company. This will be accounted for on settlement of the price thereof by the State Government Authorities.

c) Land includes 1,295 acres of value Rs 155.37 crore (31 March 2016: 1,306 acres of value Rs 234.94 crore, 1 April 2015: 1,302 acres of value Rs 72.36 crore) not in possession of the Company. The Company is taking appropriate steps for repossession of the same.

d) Land includes an amount of Rs 262.91 crore (31 March 2016: Rs 262.91 crore, 1 April 2015: Rs 179.65 crore) deposited with various authorities in respect of land in possession which is subject to adjustment on final determination of price.

e) Gross block of land under submergence represents Rs 552.52 crore (31 March 2016: Rs 496.37 crore, 1 April 2015: Rs Nil) of freehold land and Rs 180.31 crore (31 March 2016: Rs 223.32 crore, 1 April 2015: Rs Nil) of leasehold land. The land 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.

f) Possession of land measuring 98 acres (31 March 2016: 98 acres, 1 April 2015: 98 acres) consisting of 79 acres of freehold land (31 March 2016: 79 acres, 1 April 2015: 79 acres) and 19 acres of lease hold land (31 March 2016: 19 acres, 1 April 2015: 19 acres) of value Rs 0.21 crore (31 March 2016: Rs 0.21 crore, 1 April 2015: Rs 0.21 crore) was transferred to Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd. (erstwhile UPSEB) for a consideration of Rs 0.21 crore. Pending approval for transfer of the said land, the area and value of this land has been included in the total land of the Company. The consideration received from erstwhile UPSEB is disclosed under Note -31 - Current liabilities - other financial liabilities.

g) Ministry of Power, GOI vide letter dated 27 April 2010 notified the Scheme for providing electricity in 5 KM area of all existing and upcoming power plants by CPSUs. The Scheme provided that expenditure incurred under this scheme will be booked by the CPSU under project cost and will be included in the tariff by the appropriate commission. Keeping in view the above, the expenditure incurred by the Company under the scheme was capitalised as a separate asset and was being depreciated over the remaining useful life of the related plant. The CERC while giving the tariff orders for some of the stations has directed that the actual expenditure should be reimbursed by the beneficiaries w.e.f. 1 April 2016 in equal monthly installments in the remaining three years of tariff period till March 2019 along-with interest instead of servicing the same as part of the capital cost. Consequently, cost of such tangible assets of Rs 116.87 crore was charged off as expenditure for the year ended 31 March 2016 and corresponding depreciation of Rs 46.11 crore charged till 31 March 2015 was written back. Consequently, revenue from operations of Rs 108.19 crore (including interest of Rs 3.05 crore) was recognised during the year 2015-16.

h) In line with Para D13AA of Ind AS 101, the Company has adopted the existing policy for capitalisation of exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP i.e. the year 2015-16. Refer Note 62 also.

i) Refer Note 55 (b) regarding property, plant and equipment under finance lease.

j) Based on assessment, reversal of an impairment loss of Rs 0.73 crore (31 March 2016: Rs Nil) has been done during the year in respect of plant and equipment of a Solar PV Station of the Company. The impairment loss of Rs 4.48 crore was recognised in 31 March 2016. Refer Note 60.

k) Refer Note 23 for information on property, plant and equipment pledged as security by the Company.

l) Refer Note 71 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

m) Deduction/adjustments from gross block and depreciation/amortisation/impairment for the year includes:

Rs Crore

Gross block Depreciation/ amortisation/impairment
31.03.2017 31.03.2016 31.03.2017 31.03.2016
Disposal of assets 76.36 26.59 10.34 24.65
Retirement of assets 102.99 519.93 24.42 256.83
Cost adjustments including exchange differences (1,200.64) (3,225.79) - -
Assets capitalised with retrospective effect/write back of excess capitalisation (139.81) (200.45) (8.95) 57.93
Others incl. Ind AS Adjustments 33.18 (406.47) 24.99 (482.90)
(1,127.92) (3,286.19) 50.80 (143.49)

n) Exchange differences capitalised are disclosed in the ‘Addition' column of CWIP and allocated to various heads of CWIP in the year of capitalisation through ‘Deductions/Adjustment' column of CWIP. Exchange differences in respect of assets already capitalised are disclosed in the ‘Deductions/Adjustments' column of PPE. Asset-wise details of exchange differences and borrowing costs included in the cost of major heads of PPE and CWIP through ‘Addition' or ‘Deductions/Adjustments' column are given below: Rs Crore

For the year ended 31 March 2017 For the year ended 31 March 2016
Exchange Difference included in PPE/ CWIP Borrowing costs incl in PPE/ CWIP Exchange Difference included in PPE/ CWIP Borrowing costs incl in PPE/ CWIP
Building
Main plant (4.52) 197.09 25.45 164.47
Others (0.25) 83.35 3.23 49.33
Hydraulic works, barrages, dams, tunnels and power channel (5.62) 183.06 22.99 202.71
MGR track and signalling system - 2.89 0.21 14.62
Railway siding (0.06) 45.16 0.01 19.13
Plant and equipment (172.18) 3,121.72 1,466.46 2,752.04
Others including pending allocation (232.66) 491.81 438.26 495.66
Total (415.29) 4,125.08 1,956.61 3,697.96

o) Information regarding gross block of Property, plant and equipments and accumulated depreciation/amortisation under previous GAAP is as follows: Rs Crore

Particulars Gross block as at 01.04.2015 Accumulated depreciation as at 01.04.2015 Net block as at 01.04.2015 (Deemed Cost) Ind AS adjustments as at 01.04.2015 Opening balance as at 01.04.2015
Land
(including development expenses)
Freehold 6,523.21 - 6,523.21 - 6,523.21
Leasehold 3,166.04 499.69 2,666.35 - 2,666.35
Roads, bridges, culverts & helipads 852.00 257.73 594.27 2.65 591.62
Building
Freehold
Main plant 5,000.69 1,602.33 3,398.36 8.10 3,390.26
Others 3,180.50 1,183.39 1,997.11 35.60 1,961.51
Leasehold 50.00 31.09 18.91 - 18.91
Temporary erection 39.35 38.23 1.12 - 1.12
Water supply, drainage & sewerage system 720.54 357.02 363.52 6.58 356.94
MGR track and signalling system 1,542.01 723.19 818.82 - 818.82
Railway siding 750.73 231.46 519.27 6.15 513.12
Earth dam reservoir 290.10 136.22 153.88 2.86 151.02
Plant and equipment
Owned 103,754.88 43,270.61 60,484.27 371.59 60,112.68
Leased 60.00 4.23 55.77 - 55.77
Furniture and fixtures 484.73 278.07 206.66 - 206.66
Vehicles including speedboats
Owned 12.77 5.95 6.82 - 6.82
Office equipment 196.25 96.77 99.48 - 99.48
EDP, WP machines and satcom equipment 423.43 314.71 108.72 - 108.72
Construction equipments 193.35 102.72 90.63 - 90.63
Electrical installations 487.21 195.78 291.43 - 291.43
Communication equipments 106.96 61.45 45.51 - 45.51
Hospital Equipments 39.78 18.61 21.17 - 21.17
Laboratory and workshop equipments 70.10 19.23 50.87 - 50.87
Assets under 5 KM scheme of the GOI 116.87 46.11 70.76 - 70.76
Assets for ash utilisation 17.30 - 17.30 - 17.30
Less: Adjusted from fly ash utilisation reserve fund 17.30 - 17.30 - 17.30
Total 128,061.50 49,474.59 78,586.91 433.53 78,153.38

3. Non-current assets - Intangible assets

As at 31 March 2017

Particulars Gross block Amortisation Net block
As at 01.04.2016 Additions Deductions/ adjustments As at 31.03.2017 Upto 01.04.2016 For the year Deductions/ adjustments Upto 31.03.2017 As at 31.03.2017 As at 31.03.2016
Software 16.39 9.97 (0.54) 26.90 6.31 7.94 (0.42) 14.67 12.23 10.08
Right of use - Land 73.20 28.36 (3.05) 104.61 2.78 4.11 - 6.89 97.72 70.42
- Others 203.71 - - 203.71 10.32 10.32 - 20.64 183.07 193.39
Total 293.30 38.33 (3.59) 335.22 19.41 22.37 (0.42) 42.20 293.02 273.89

As at 31 March 2016

Particulars Gross block Amortisation Net block
As at 01.04.2015 Additions Deductions/ adjustments As at 31.03.2016 Upto 01.04.2015 For the year Deductions/ adjustments Upto 31.03.2016 As at 31.03.2016 As at 01.04.2015
Software 12.78 3.50 (0.11) 16.39 - 6.21 (0.10) 6.31 10.08 12.78
Right of use - Land 45.67 14.33 (13.20) 73.20 - 2.78 - 2.78 70.42 45.67
- Others 203.71 - - 203.71 - 10.32 - 10.32 193.39 203.71
Total 262.16 17.83 (13.31) 293.30 - 19.31 (0.10) 19.41 273.89 262.16

a) The right of use of land & others are amortized over the period of legal right to use or life of the related plant, whichever is less.

b) Cost of acquisition of the right for drawl of water amounting to Rs 203.71 crore (31 March 2016: Rs 203.71 crore, 1 April 2015: Rs 203.71 crore) is included under intangible assets – Right of use - Others.

c) Deduction/adjustments from gross block and amortisation for the year includes:

Rs Crore
Gross Block Amortisation
31.03.2017 31.03.2016 31.03.2017 31.03.2016
Cost adjustments (3.16) (13.20) - -
Others (0.43) (0.11) (0.42) (0.10)
Total (3.59) (13.31) (0.42) (0.10)

d) Information regarding gross block of intangible assets and accumulated amortisation under previous GAAP is as follows:

Rs Crore
Particulars Gross block as at 01.04.2015 Accumulated amortisation as at 01.04.2015 Net Block as at 01.04.2015 (Deemed cost) Ind AS adjustments as at 01.04.2015 Opening balance as at 01.04.2015
Software 111.55 98.77 12.78 - 12.78
Right of use - Land 56.46 10.79 45.67 - 45.67
- Others 248.08 44.37 203.71 - 203.71
416.09 153.93 262.16 - 262.16

4. Non-current assets - Capital work-in-progress

As at 31 March 2017 Rs Crore
Particulars As at 01.04.2016 Additions Deductions/ adjustments Capitalised As at 31.03.2017
Development of land 734.44 184.40 40.33 - 878.51
Roads, bridges, culverts & helipads 75.12 106.05 4.48 77.48 99.21
Piling and foundation 675.70 31.84 51.61 - 655.93
Buildings
Main plant 3,155.65 1,370.65 732.62 195.65 3,598.03
Others 1,439.01 803.31 205.32 337.65 1,699.35
Temporary erection 36.58 10.36 5.53 5.45 35.96
Water supply, drainage and sewerage system 77.58 46.37 (19.08) 81.81 61.22
Hydraulic works, barrages, dams, tunnels and power channel 1,982.10 341.31 3.64 - 2,319.77
MGR track and signalling system 231.56 77.28 244.10 27.12 37.62
Railway siding 454.92 809.66 57.38 64.97 1,142.23
Earth dam reservoir 106.79 9.53 (17.69) 44.76 89.25
Plant and equipment 48,356.68 23,612.18 351.08 10,098.95 61,518.83
Furniture and fixtures 12.85 29.53 1.33 17.90 23.15
Office equipment 2.03 5.60 0.19 1.93 5.51
EDP/WP machines & satcom equipment 28.27 2.04 (0.77) 29.52 1.56
Construction equipments - 0.03 - - 0.03
Electrical installations 368.88 175.83 (31.47) 59.49 516.69
Communication equipments 2.35 1.23 0.01 0.62 2.95
Hospital equipments 0.07 0.47 0.01 0.03 0.50
Laboratory and workshop equipments 2.96 11.34 0.32 8.07 5.91
Development of coal mines 1,301.30 383.51 0.18 - 1,684.63
59,044.84 28,012.52 1,629.12 11,051.40 74,376.84
Expenditure pending allocation
Survey, investigation, consultancy and supervision charges 92.88 - 5.49 - 87.39
Difference in exchange on foreign currency loans 1,920.69 35.13 457.69 - 1,498.13
Pre-commisioning expenses (net) 99.39 341.81 167.61 - 273.59
Expenditure during construction period (net)* 1,037.44 5,273.17 13.78 - 6,296.83
Other expenditure directly attributable to project construction 469.92 99.79 66.99 - 502.72
Less: Allocated to related works - 5,914.10 - - 5,914.10
62,665.16 27,848.32 2,340.68 11,051.40 77,121.40
Less: Provision for unserviceable works 99.39 - 0.66 - 98.73
Construction stores (net of provision) 3,639.82 (139.94) - - 3,499.88
Total 66,205.59 27,708.38 2,340.02 11,051.40 80,522.55

As at 31 March 2016

Particulars
Deemed cost as at 01.04.2015 Additions Deductions/ adjustments Capitalised As at 31.03.2016
Development of land 662.17 264.85 192.58 - 734.44
Roads, bridges, culverts & helipads 116.45 62.33 (21.45) 125.11 75.12
Piling and foundation 641.51 34.82 0.63 - 675.70
Buildings -
Main plant 2,728.88 1,213.40 369.43 417.20 3,155.65
Others 1,126.02 771.79 54.55 404.25 1,439.01
Temporary erection 44.84 65.87 70.23 3.90 36.58
Water supply, drainage and sewerage system 68.02 33.22 2.81 20.85 77.58
Hydraulic works, barrages, dams, tunnels and power channel 5,268.97 797.68 (1.01) 4,085.56 1,982.10
MGR track and signalling system 213.72 145.60 52.59 75.17 231.56
Railway siding 324.54 291.88 51.43 110.07 454.92
Earth dam reservoir 76.60 40.86 0.27 10.40 106.79
Plant and equipment 37,508.74 19,242.09 756.07 7,638.08 48,356.68
Furniture and fixtures 23.16 15.75 (9.48) 35.54 12.85
Office equipment 1.61 5.90 0.44 5.04 2.03
EDP/WP machines & satcom equipment 2.06 29.46 0.33 2.92 28.27
Construction equipments 1.82 - 0.01 1.81 -
Electrical installations 264.97 294.48 145.21 45.36 368.88
Communication equipments 2.19 2.40 0.71 1.53 2.35
Hospital equipments 0.13 0.07 - 0.13 0.07
Laboratory and workshop equipments 0.06 2.94 0.01 0.03 2.96
Development of coal mines 1,086.49 214.81 - - 1,301.30
50,162.95 23,530.20 1,665.36 12,982.95 59,044.84
Expenditure pending allocation -
Survey, investigation, consultancy and supervision charges 166.26 12.83 86.21 - 92.88
Difference in exchange on foreign currency loans 1,528.42 893.96 501.69 - 1,920.69
Pre-commisioning expenses (net) 49.32 173.20 123.13 - 99.39
Expenditure during construction period (net)* 725.88 4,698.23 126.74 5,297.37
Other expenditure directly attributable to project construction 76.37 447.01 53.06 0.40 469.92
Less: Allocated to related works - 4,259.93 - - 4,259.93
52,709.20 25,495.50 2,556.19 12,983.35 62,665.16
Less: Provision for unserviceable works 105.99 4.22 10.82 - 99.39
Construction stores (net of provision) 3,859.90 (220.08) - - 3,639.82
Total 56,463.11 25,271.20 2,545.37 12,983.35 66,205.59

* Brought from expenditure during construction period (net) - Note 43 a) Construction stores are net of provision for shortages pending investigation amounting to Rs 14.06 crore (31 March 2016: Rs 7.40 crore, 1 April 2015: Rs 4.69 crore).

b) Pre-commissioning expenses for the year amount to Rs 384.87 crore (31 March 2016: Rs 328.16 crore, 1 April 2015: 292.74 crore) and after adjustment of pre-commissioning sales of Rs 43.06 crore (31 March 2016: Rs 154.96 crore, 1 April 2015: Rs 50.04 crore) resulted in net pre-commissioning expenditure of Rs 341.81 crore (31 March 2016: Rs 173.20 crore, 1 April 2015: Rs 242.70 crore).

c) Additions to the development of coal mines include expenditure during construction period (net) of Rs 353.95 crore (31 March 2016: Rs 214.75 crore, 1 April 2015: Rs 153.90 crore).

5. Non-current assets - Intangible assets under development

As at 31 March 2017 Rs Crore
Particulars As at 01.04.2016 Additions Deductions/ Adjustments Capitalised As at 31.03.2017
Right of use - others 140.19 - (74.34) - 214.53
Exploratory wells-in-progress 85.06 20.45 97.86 - 7.65
225.25 20.45 23.52 - 222.18
Less: Provision for unserviceable works 7.64 - - - 7.64
Total 217.61 20.45 23.52 - 214.54
As at 31 March 2016 Rs Crore
Particulars Deemed cost as at 01.04.2015 Additions Deductions/ Adjustments Capitalised As at 31.03.2016
Software 0.10 - - 0.10 -
Right of use - others - 140.19 - 140.19
Exploratory wells-in-progress 37.92 69.24 22.10 - 85.06
38.02 209.43 22.10 0.10 225.25
Less: Provision for unserviceable works 7.64 - - - 7.64
Total 30.38 209.43 22.10 0.10 217.61

6. Non-current assets - Investments in subsidiaries & joint ventures

Rs Crore
Particulars Number of shares/ bonds/ securities Current year/ (previous year)/ [date of transition] Face value per share/ bond/ security Current year/ (previous year)/ [date of transition] As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
(Rs)
Equity instruments - Unquoted (fully paid up - unless otherwise stated, at cost)
Subsidiary companies
NTPC Electric Supply Company Ltd. 80910 10 0.08 0.08 0.08
(80910) (10)
[80910] [10]
NTPC Vidyut Vyapar Nigam Ltd. 20000000 10 20.00 20.00 20.00
(20000000) (10)
[20000000] [10]
Kanti Bijlee Utpadan Nigam Ltd. 729457976 10 729.46 689.98 650.00
(689979992) (10)
[650000000] [10]
Bhartiya Rail Bijlee Company Ltd. 1172613850 10 1,172.61 1,172.61 1,172.61
(1172613850) (10)
[1172613850] [10]
Patratu Vidyut Utpadan Nigam Ltd. 74000 10 0.08 0.08 -
(74000) (10)
[-] [-]
1,922.23 1,882.75 1,842.69
Share application money pending allotment in
Kanti Bijlee Utpadan Nigam Ltd. 233.43 31.04 -
Bhartiya Rail Bijlee Company Ltd. 247.93 15.64 -
Patratu Vidyut Utpadan Nigam Ltd. 34.50 1.00 -
515.86 47.68 -
Joint venture companies
Utility Powertech Ltd. (includes 1000000 bonus shares) 2000000 10 1.00 1.00 1.00
(2000000) (10)
[2000000] [10]
NTPC-GE Power Services Private Ltd. (formerly NTPC-Alstom Power Services Private Ltd.) 3000000 10 3.00 3.00 3.00
(3000000) (10)
[3000000] [10]
NTPC-SAIL Power Company Ltd. (formerly NTPC-SAIL Power Company Private Ltd.) 490250050 10 490.25 490.25 490.25
(490250050) (10)
[490250050] [10]
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
NTPC-Tamil Nadu Energy Company Ltd. 1385606112 10 1,385.61 1,345.61 1,325.61
(1345606112) (10)
[1325606112] [10]
Ratnagiri Gas & Power Private Ltd. 974308300 10 974.30 974.30 974.30
(974308300) (10)
[974308300] [10]
Less: Provision for impairment 782.95 - -
191.35 974.30 974.30
Aravali Power Company Private Ltd. 1398508200 10 1,398.51 1,332.00 1,257.51
(1332008200) (10)
[1257508200] [10]
NTPC BHEL Power Projects Private 50000000 10 50.00 50.00 50.00
Ltd. (50000000) (10)
[50000000] [10]
Less: Provision for impairment 28.68 6.61 -
21.32 43.39 50.00
Meja Urja Nigam Private Ltd. 1166439800 10 1,166.44 841.44 412.43
(841439800) (10)
[412429800] [10]
BF-NTPC Energy Systems Ltd. 6570900 10 6.57 5.88 5.88
(5880000) (10)
[5880000] [10]
Less: Provision for impairment 3.75 3.63 3.35
2.82 2.25 2.53
Nabinagar Power Generating Company Private Ltd. 1189300000 10 1,189.30 713.30 511.13
(713300000) (10)
[511125000] [10]
Transformers and Electricals Kerala Ltd. 19163438 10 31.34 31.34 31.34
(19163438) (10)
[19163438] [10]
National High Power Test Laboratory Private Ltd. 30400000 10 30.40 23.90 23.90
(23900000) (10)
[23900000] [10]
Energy Efficiency Services Ltd. 146500000 10 146.50 47.50 22.50
(47500000) (10)
[22500000] [10]
CIL NTPC Urja Private Ltd. 76900 10 0.08 0.08 0.03
(76900) (10)
[25000] [10]
Anushakti Vidhyut Nigam Ltd. 49000 10 0.05 0.05 0.05
(49000) (10)
[49000] [10]
NTPC-SCCL Global Ventures Private Ltd. - - - - 0.05
(-) (-)
[50000] [10]
Rs Crore
Particulars As at As at As at
31.03.2017 31.03.2016 01.04.2015
National Power Exchange Ltd. - - - - 2.19
(-) (-)
[2188325] [10]
Less: Provision for impairment - - 1.06
- - 1.13
Pan-Asian Renewables Private Ltd. - - - - 1.50
(-) (-)
[1500000] [10]
Less: Provision for impairment - - 1.28
- - 0.22
Hindustan Urvarak and Rasayan 5025000 10 5.03 - -
Ltd. (-) (-)
[-] [-]
Trincomalee Power Company Ltd. 3286061 100* 15.20 15.20 9.26
(* Srilankan rupees) (3286061) (100)*
[2036061] [100]*
Bangladesh-India Friendship Power Company Pvt.Ltd. 16250000 100* 134.20 69.68 15.53
(8750000) (100)*
(* Bangladeshi Taka) [2000000] [100]*
6,212.40 5,934.29 5,131.77
Share application money pending allotment in
NTPC-Tamil Nadu Energy Company Ltd. 24.39 20.00 -
Nabinagar Power Generating Company Private Ltd. 164.00 50.00 -
Aravali Power Company Private Ltd. - - 21.34
Meja Urja Nigam Private Ltd. - - 128.92
CIL NTPC Urja Private Ltd. - - 0.05
Bangladesh-India Friendship Power Company Pvt. Ltd. - - 15.90
188.39 70.00 166.21
Total 8,838.88 7,934.72 7,140.67
Aggregate amount of unquoted investments 8,838.88 7,934.72 7,140.67
Aggregate amount of impairment in the value of investments 815.38 10.24 5.69

a) Investments have been valued as per accounting policy no. C.25.1 (Note 1). b) The Board of Directors of NTPC Limited in its meeting held on 25 March 2015 accorded in principle approval for voluntary winding up of NTPC-SCCL Global Ventures Pvt. Ltd. (NTPC-SCCL). On 8 September 2015, the Company received the approval from the shareholders of NTPC-SCCL. Pending liquidation, the Company had lost the joint control over the entity and accordingly, has classified the investment in NTPC SCCL as ‘Investment in unquoted equity instruments' as at 31 March 2016 and 31 March 2017 in Note 7 (Non-current financial assets - Investments).

The liquidator has distributed winding up proceeds to the shareholders. Accordingly, the Company has received 0.04 crore out of the total investment of Rs 0.05 crore as final settlement during the year. The final general meeting of NTPC-SCCL was held on 15 November 2016 after which the documents and books of liquidation were filed to the Official Liquidator. The Official Liquidator, after scrutiny of documents, filed the report to the Hon'ble Delhi High Court. The order from the Hon'ble High Court for dissolution of NTPC-SCCL is awaited.

c) The Board of Directors of NTPC Limited in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from NTPC BHEL Power Projects Private Ltd. (NTPC-BHEL), a Joint Venture of the Company. As NTPC-BHEL was formed by a directive from the GOI, approval of exit from GOI is awaited. Pending withdrawal, provision of 28.68 crore (31 March 2016: Rs 6.61 crore, 1 April 2015: Nil) for impairment in the value of investment has been made based on the unaudited accounts of NTPC-BHEL as at 31 March 2017.

d) The Board of Directors of NTPC Limited in its meeting held on 19 June 2014 accorded in principle approval for withdrawal from BF-NTPC Energy Systems Ltd. (BF-NTPC), a joint venture of the Company. As BF-NTPC was formed by a directive from the GOI, approval of the GOI was sought for exit by NTPC Limited. GOI has suggested to wind up BF-NTPC. NTPC Limited has given its consent for winding up. Approval from the GOI is awaited to start winding up process. Pending winding-up, provision of Rs 3.75 crore (31 March 2016: Rs 3.63 crore, 1 April 2015: Rs 3.35 crore) for impairment in the value of investment has been made based on the unaudited accounts of BF-NTPC as at 31 March 2017.

e) The Board of Directors of NTPC Limited in its meeting held on 7 November 2012 accorded in principle approval for withdrawal from National Power Exchange Ltd. (NPEX). On 28 October 2014, the shareholders of NPEX approved the proposal for voluntary winding up of NPEX. Pending liquidation, company had lost the joint control over the entity and accordingly, has classified the investment in NPEX as ‘Investment in unquoted equity instruments' as at 31 March 2016 and 31 March 2017 in Note 7 (Non-current financial assets - Investments). The liquidator has distributed winding up proceeds to the Shareholders. Accordingly, the Company has received Rs 1.21 crore out of the total investment of Rs 2.19 crore as final settlement during the year. The final general meeting of NPEX was held on 14 October 2016 after which the documents and books of liquidation were filed to the Official Liquidator. The Official Liquidator, after scrutiny of documents, filed the report to the Hon'ble Delhi High Court. The order from the Hon'ble High Court for dissolution of NPEX is awaited.

f) The Board of Directors of NTPC Limited in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from Transformers and Electricals Kerala Ltd. (TELK) (a Joint Venture of the Company). The decision of the Board of Directors of NTPC Limited has been conveyed to the Government of Kerala (JV Partner) & TELK and response on the same is awaited. Pending withdrawal, no provision for impairment in the value of investment in TELK is required to be made.

g) The Board of Directors of NTPC Limited in its meeting held on 31 October 2014 approved the proposal for voluntary winding up of Pan-Asian Renewables Private Ltd. (Pan-Asian). On 22 January 2015, the shareholders of Pan-Asian approved the proposal for voluntary winding up of Pan-Asian. Pending liquidation, the Company had lost the joint control over the entity and accordingly, has classified the investment in Pan-Asian as ‘Investment in unquoted equity instruments' as at 31 March 2016 and 31 March 2017 in Note 7 (Non-current financial assets - Investments). The liquidator has distributed winding up proceeds to the Shareholders. Accordingly, the Company has received Rs 0.19 crore out of the total investment of Rs 1.50 crore as final settlement during the year. The final general meeting of Pan-Asian was held on 21 September 2016 after which the documents and books of liquidation were filed to the Official Liquidator. The Official Liquidator, after scrutiny of documents, filed the report to the Hon'ble Delhi High Court. The order from the Hon'ble High Court for dissolution of Pan-Asian is awaited. h) As required by Ind AS 36, an assessment of impairment of the investment in Ratnagiri Gas and Power Private Ltd. (RGPPL) was carried out by an independent expert. Consequently, impairment loss on the investment in RGPPL amounting to Rs 782.95 Crore (31 March 2016: Rs Nil, 1 April 2015: Rs Nil) has been provided and disclosed as ‘Exceptional items - Impairment loss on investments' in the statement of profit and loss. Also refer Note No.60.

i) Restrictions for the disposal of investments held by the Company and commitments towards certain Subsidiary & Joint Venture entities are disclosed in Note 71.

7. Non-current financial assets - Investments

Rs Crore
Particulars Number of shares/ bonds/ securities Current year/ (previous year)/ [date of transition] Face value per share/bond/ security Current year/ (previous year)/ [date of transition] As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
(Rs)
Equity instruments (fully paid up - unless otherwise stated)
Quoted (designated at fair value through other comprehensive income)
PTC India Ltd. 12000000 10 112.08 76.80 97.08
(12000000) (10)
[12000000] [10]
112.08 76.80 97.08
Unquoted (measured at fair value through profit or loss)
NTPC-SCCL Global Ventures Private Ltd. - - - 0.05 -
(50000) (10)
[-] [-]
National Power Exchange Ltd. - - - 1.13 -
(2188325) (10)
[-] [-]
Pan-Asian Renewables Private Ltd. - - - 0.22 -
(1500000) (10)
[-] [-]
International Coal Ventures Private Ltd. 1400000 10 1.40 1.40 1.40
(1400000) (10)
[1400000] [10]
1.40 2.80 1.40
Cooperative societies # # #
Total 113.48 79.60 98.48
Aggregate amount of quoted investments and market value thereof 112.08 76.80 97.08
Aggregate amount of unquoted investments 1.40 2.80 1.40

# Equity shares of Rs 30,200/- (31 March 2016: Rs 30,200/-, 1 April 2015: Rs 30,200/-) held in various employee cooperative societies.

a) Investments have been valued as per accounting policy no. C.25.1 (Note 1).

b) The Board of Directors of NTPC Limited in its meeting held on 28 April 2016 accorded in principle approval for withdrawal from PTC India Ltd. (PTC). As the Company was formed by a directive from the GOI, approval of the GOI is awaited for exit by NTPC Limited.

c) The Board of Directors of NTPC Limited in its meeting held on 27 January 2012 accorded in principle approval for withdrawal from International Coal Ventures Private Ltd. (ICVPL). As the Company was formed by a directive from the GOI, approval of the GOI is awaited for exit by NTPC Limited. Pending withdrawal, the Company had lost the joint control over the entity and accordingly, has classified the investment in ICVPL as ‘Investment in unquoted equity instruments'. Pending withdrawal, no provision for impairment in the value of investment in ICVPL is required to be made.

d) No strategic investments in equity instruments measured at FVTOCI were disposed during 2016-17, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

8. Non-current financial assets - Trade receivables

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Trade receivables
Unsecured, considered good 35.59 71.18 -

9. Non-current financial assets - Loans

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Loans
Related parties
Unsecured 129.92 1.48 3.17
Employees (including accrued interest)
Secured 252.52 236.88 234.73
Unsecured 97.81 149.34 127.08
Loan to state government in settlement of dues from customers
Unsecured - - 47.86
Others
Secured 50.34 53.23 55.62
Total 530.59 440.93 468.46
a) Due from directors and officers of the Company
Directors 0.06 0.02 -
Officers (# Rs 3,728/- * 49,873/-) 0.01 # *
b) Loans to related parties include:
Key management personnel (* Rs 49,873/-) 0.07 0.02 *
Kanti Bijli Utapadan Nigam Ltd. (Subsidiary) 121.00 0.86 2.57
Patratu Vidyut Utpadan Nigam Ltd. (Subsidiary) 8.25 - -
NTPC Education and Research Society 0.60 0.60 0.60

c) Other loans represent loan of Rs 50.34 crore (31 March 2016: Rs 53.23 crore, 1 April 2015: Rs 55.62 crore) given to Andhra Pradesh Industrial Infrastructure Corporation Ltd. (APIIC). d) Details of collateral held as security:

- Loans to the employee are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company.

- Loan to APIIC is secured by a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

10. Non-current assets - Other financial assets

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Claims recoverable 638.97 510.99 466.28
Finance lease receivables {Refer Note 55(b)} 525.29 511.20 515.20
Total 1,164.26 1,022.19 981.48

a) Claims recoverable includes Rs 619.34 crore (31 March 2016: Rs 469.73 crore, 1 April 2015: Rs 466.28 crore) towards the cost incurred upto 31 March 2017 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI which includes Rs 332.38 crore (31 March 2016: Rs 185.41 crore, 1 April 2015: Rs 214.34 crore) in respect of arbitration awards challenged by the Company before Hon'ble High Court. In the event the High Court grants relief to the Company, the amount would be adjusted against Current liabilities - Provisions - Provision for Others (Note 33). Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

b) Keeping in view the provisions of Appendix C to Ind AS-17 on ‘Leases' w.r.t. determining whether an arrangement contains a lease, the Company has ascertained that the Power Purchase Agreement (PPA) entered into for Stage I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets has been derecognized from PPE and accounted for as Finance Lease Receivable (FLR). Recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiary are adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are recognised as ‘Interest income on Assets under finance lease' under ‘Revenue from operations' (Note - 37).

11. Other non-current assets

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Capital advances
Secured 16.23 17.34 16.48
Unsecured
Covered by bank guarantee 3,296.66 3,623.71 4,050.18
Others 3,077.33 3,267.22 3,654.03
Considered doubtful 5.74 1.92 2.06
Less: Allowance for bad & doubtful advances 5.74 1.92 2.06
6,390.22 6,908.27 7,720.69
Advances other than capital advances
Security deposits 85.67 81.75 90.26
Advances to related parties 20.95 20.95 20.95
Advances to contractors & suppliers 2,296.71 2,273.47 2,257.53
Advance tax & tax deducted at source 11,423.36 16,210.46 11,692.79
Less: Provision for tax 4,517.16 9,384.10 6,879.31
6,906.20 6,826.36 4,813.48
Deferred foreign currency fluctuation asset 1,032.68 1,368.79 1,280.49
Deferred payroll expenditure 146.72 157.21 160.45
Total 16,879.15 17,636.80 16,343.85

a) In line with accounting policy no. 14 (Note 1), deferred foreign currency fluctuation asset has been accounted and (-) Rs 233.80 crore (31 March 2016: (-) Rs 709.35 crore) being exchange fluctuations on account of foreign currency loans has been recognised in energy sales in Note-37 ‘Revenue from operations'.

b) Capital advances include amounts given as advance against works to the following private companies (related parties) in which one or more directors of the Company are directors:

NTPC-GE Power Services Private Ltd. (Previously NTPC-Alstom Power Services Private Ltd.) 48.42 5.11 17.96
NTPC BHEL Power Projects Private Ltd. 117.03 154.10 162.24

c) Capital advances include Rs 224.29 crore (31 March 2016: Rs 224.48 crore, 1 April 2015: Rs 268.72 crore), paid to a contractor pending settlement of certain claims which are under arbitration. The amount will be adjusted in the cost of related work or recovered from the party, depending upon the outcome of the arbitration proceedings.

d) Advances to contractors & suppliers include payments to Railways amounting to Rs 2,226.22 crore (31 March 2016: 2,226.16 crore, 1 April 2015 Rs 2,210.22 crore) under Customer funding model as per policy on ‘Participative model for rail-connectivity and capacity augmentation projects' issued by Ministry of Railways, GOI. As per the policy, an agreement has been signed between the Company and the Ministry of Railways, GOI on 6 June 2016. As per the agreement, railway projects agreed between the Company and Railways will be constructed, maintained and operated by Railways and ownership of the line and its operations & maintenance will always remain with them. Railways will pay upto 7% of the amount invested through freight rebate on freight volumes every year till the funds provided by the Company are recovered along-with 5% interest on the fund provided by the Company after COD of the railway projects. The railway projects as per the agreement are yet to achieve the COD.

e) Capital advance are secured against the hypothecation of the construction equipment/material supplied by the contractors/parties.

f) Loans given to employees are measured at amortised cost. The deferred payroll expenditure represents the benefits accruing to employees. The same is amortised on a straight line basis over the remaining period of the loan.

12. Current assets - Inventories

Rs Crore

Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Coal 2,627.38 3,490.12 3,827.37
Fuel oil 270.30 249.24 344.06
Naphtha 112.64 118.54 139.81
Stores & spares 2,890.96 2,593.53 2,475.37
Chemicals & consumables 97.87 78.32 66.21
Loose tools 7.41 7.89 7.22
Steel scrap 18.68 24.88 20.59
Others 582.43 540.75 502.21
6,607.67 7,103.27 7,382.84
Less: Provision for shortages 5.10 5.63 4.48
Provision for obsolete/unserviceable items/diminution in value of surplus inventory 97.76 87.27 81.30
Total 6,504.81 7,010.37 7,297.06
Inventories include material-in-transit
Coal 183.92 323.71 421.24
Stores & spares 46.50 37.88 35.59
Chemicals & consumables 0.78 1.16 0.38
Loose tools 0.08 0.07 0.04
Others 0.91 0.63 0.84

a) Inventory items, other than steel scrap have been valued as per accounting policy no. C.8 (Note 1). Steel scrap has been valued at estimated realisable value.

b) Inventories - Others includes steel, cement, ash bricks etc.

13. Current financial assets - Investments

Rs Crore
Particulars Number of shares/ bonds/ securities Current year/ (previous year)/ [date of transition] Face value per share/bond/ security Current year/ (previous year)/ [date of transition] As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
(Rs)
Current maturities of long term investments
Bonds (fully-paid up) (measured at amortised cost)
Unquoted
8.50 % Tax-Free State Government Special Bonds of the Government of Andhra Pradesh - - - 2.68 134.11
(-) (-)
[1260650] [1000]
Assam - - - 0.11 5.48
(-) (-)
[51464] [1000]
Bihar - - - 4.03 201.52
(-) (-)
[1894400] [1000]
Chattisgarh - - - 1.03 51.40
(-) (-)
[483220] [1000]
Gujarat - - - 1.78 89.07
(-) (-)
[837240] [1000]
Haryana - - - 2.28 114.35
(-) (-)
[1075000] [1000]
Himachal Pradesh - - - 0.07 3.55
(-) (-)
[33388] [1000]
Jammu and Kashmir - - - 0.78 39.08
(-) (-)
[367360] [1000]
Jharkhand - - - 2.04 102.13
(-) (-)
[960136] [1000]
Kerala - - - 2.13 106.63
(-) (-)
[1002400] [1000]
Madhya Pradesh - - - 1.77 88.38
(-) (-)
[830840] [1000]
Rs Crore
Particulars Number of shares/ bonds/ securities Current year/ (previous year)/ [date of transition] Face value per share/bond/ security Current year/ (previous year)/ [date of transition] As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
(Rs)
Maharashtra - - - 0.81 40.57
(-) (-)
[381400] [1000]
Orissa - - - 2.34 117.32
(-) (-)
[1102874] [1000]
Punjab - - - 0.73 36.83
(-) (-)
[346230] [1000]
Rajasthan - - - 0.62 30.85
(-) (-)
[290000] [1000]
Sikkim - - - 0.07 3.64
(-) (-)
[34196] [1000]
Uttar Pradesh - - - 8.48 424.42
(-) (-)
[3989900] [1000]
Uttaranchal - - - 0.85 42.51
(-) (-)
[399650] [1000]
West Bengal - - - 2.49 124.90
(-) (-)
[1174248] [1000]
- 35.09 1,756.74
Investment in mutual funds (measured at fair value through profit or loss)
UTI Liquid Cash Plan-IP-Direct-DDR* - 159.58 151.36
IDBI Liquid Fund-Direct-DDR* - 79.30 75.24
SBI Premier Liquid Fund - Direct - - 104.75 -
DDR*
- 343.63 226.60
Total - 378.72 1,983.34
Aggregate amount of unquoted investments - 378.72 1,983.34

* Investments out of fly ash utilization reserve fund.

a) Investments have been valued as per accounting policy no. C.25.1 (Note 1).

b) The above investments are unquoted and hence market value is not applicable.

c) Investments in 8.50 % Tax-Free State Government Special Bonds of the Government of various states as at 31 March 2016 represent accrued interest amount as these bonds have been redeemed during the financial year 2015-16.

14. Current financial assets - Trade receivables

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Trade receivables
Unsecured, considered good 8,137.92 7,732.22 7,604.37
Considered doubtful 0.20 0.20 0.20
8,138.12 7,732.42 7,604.57
Less: Allowance for bad & doubtful receivables 0.20 0.20 0.20
Total 8,137.92 7,732.22 7,604.37

15. Current financial assets - Cash and cash equivalents

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Balances with banks
Current accounts 150.60 61.75 189.41
Deposits with original maturity upto three months (including interest accrued) 3.35 1,310.24 -
Cheques & drafts on hand 3.10 0.32 59.66
Balance with Reserve Bank of India (including interest accrued) - - 31.46
Others (stamps on hand) 0.07 0.09 0.12
Total 157.12 1,372.40 280.65

16. Current financial assets - Bank balances other than cash and cash equivalents

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Deposits with original maturity of more than three months and maturing within one year (including interest accrued)* 1,287.97 2,286.98 12,821.55
Earmarked balances with banks # 1,485.40 801.40 172.80
Total 2,773.37 3,088.38 12,994.35
# Earmarked balances with banks towards:
Redemption of bonds due for repayment within one year 101.04 107.49 108.32
Fly ash utilisation reserve fund** 556.68 136.77 36.73
DDUGJY Scheme of the GOI*** 802.05 527.52 -
Public deposit repayment reserve - - 0.08
Unpaid dividend account balance 17.61 15.05 14.95
Amount deposited as per court orders 5.00 12.38 12.37
Unpaid interest/refund account balance - Bonds 2.97 2.15 0.30
Unpaid interest on public deposit 0.03 0.03 0.03
Security with government authorities 0.02 0.01 0.02
Total 1,485.40 801.40 172.80

* Includes deposits of Rs Nil (31 March 2016: Rs Nil, 1 April 2015: Rs 2,750 crore) with more than twelve months maturity from the date of deposit.

** Refer Note 22 regarding fly ash utilization reserve fund.

*** Out of advance for DDUGJY Scheme of the GOI. Refer Note 32 (a).

17. Current financial assets - Loans

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Loans (including interest accrued)
Related parties
Unsecured 25.05 0.94 0.87
Employees
Secured 72.55 75.99 76.41
Unsecured 134.32 121.98 94.62
State Government in settlement of dues from customers
Unsecured - 47.87 95.73
Others
Secured 5.00 5.00 5.00
Total 236.92 251.78 272.63
a) Due from Directors and Officers of the Company
Directors 0.04 0.08 -
Officers (* Rs 8260/-) 0.01 * 0.01
b) Loans to related parties include:
Key management personnel 0.05 0.08 0.01
Kanti Bijli Utapadan Nigam Ltd. (Subsidiary) - 0.86 0.86
Patratu Vidyut Utpadan Nigam Ltd. (Subsidiary) 25.00 - -

c) Other loans represent loans of Rs 5.00 crore (31 March 2016: Rs 5.00 crore, 1 April 2015: Rs 5.00 crore) given to APIIC. d) Details of collateral held as security:

- Loans to the employee are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company.

- Loan to APIIC is secured by a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

18. Current assets - Other financial assets

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Advances
Related parties
Unsecured 179.44 179.27 311.06
Employees
Unsecured 5.78 6.04 6.95
Considered doubtful 0.04 0.04 0.04
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Others
Unsecured 14.72 11.34 1.22
Less: Allowance for bad & doubtful advances 0.04 0.04 0.04
199.94 196.65 319.23
Claims recoverable
Unsecured, considered good 94.63 58.03 64.25
Considered doubtful 0.12 0.54 0.62
Less: Allowance for doubtful claims 0.12 0.54 0.62
94.63 58.03 64.25
Unbilled revenue 5,718.67 4,953.50 2,502.34
Hedging cost recoverable from beneficiaries 1.60 0.04 4.59
Derivative MTM asset - 3.66 -
Finance lease receivables 29.77 29.12 24.72
Others 8.71 5.03 15.25
Total 6,053.32 5,246.03 2,930.38

a) Unbilled revenue is net of credits to be passed to beneficiaries at the time of billing and includes Rs 7,496.34 crore (31 March 2016: Rs 6,579.06 crore, 1 April 2015: Rs 6,384.00 crore) billed to the beneficiaries after 31 March for energy sales.

b) Advance to related parties include:
Subsidiary companies 125.96 98.06 239.84
Joint venture companies 45.55 52.70 38.96
c) Advances include amounts due from the following private companies in which one or more directors of the Company are directors:
NTPC-GE Power Services Private Ltd. (Previously NTPC-Alstom Power Services Private Ltd.) 0.37 0.44 0.53
NTPC-SAIL Power Company Ltd. (Previously NTPC-SAIL Power Company Private Ltd.) - 1.74 1.96
Aravali Power Company Private Ltd. 9.03 4.24 1.98
NTPC BHEL Power Projects Private Ltd. 4.80 3.77 2.62
Meja Urja Nigam Private Ltd. 3.50 3.25 8.54
Nabinagar Power Generating Company Private Ltd. 2.61 3.04 0.71
Pan-Asian Renewables Private Ltd. - - 0.04
Bangladesh India Friendship Power Company Pvt.Ltd. 9.34 8.97 4.58

d) Other financial assets - Others include amount recoverable from contractors and other parties towards hire charges, rent/electricity etc.

19. Current assets - Other current assets

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Security deposits (unsecured) 950.81 903.03 756.78
Advances
Related parties
Unsecured 79.70 410.85 672.25
Employees
Unsecured 4.74 5.85 4.57
Contractors & suppliers
Secured 1.51 1.38 -
Unsecured 943.90 668.85 312.31
Considered doubtful 1.90 1.66 1.59
Others
Unsecured 110.51 84.58 69.83
Less: Allowance for bad & doubtful advances 1.90 1.66 1.59
1,140.36 1,171.51 1,058.96
Interest accrued on
Advance to contractors 41.76 30.69 15.15
Claims recoverable
Unsecured, considered good 2,367.47 2,543.11 2,010.21
Considered doubtful 11.96 12.59 12.78
Less: Allowance for doubtful claims 11.96 12.59 12.78
2,367.47 2,543.11 2,010.21
Assets held for disposal 1.72 1.93 2.12
Deferred payroll expenses 21.53 21.35 17.18
Others 12.79 4.93 5.11
Total 4,536.44 4,676.55 3,865.51

a) Security deposits (unsecured) include Rs 63.31 crore (31 March 2016: Rs 32.60 crore, 1 April 2015: Rs 224.15 crore) towards sales tax deposited with sales/commercial tax authorities, Rs 346.30 crore (31 March 2016: Rs 346.30 crore, 1 April 2015: Rs 306.30 crore) deposited with Courts, Rs 177.06 crore (31 March 2016: Rs 165.51 crore, 1 April 2015: 160.97 crore) deposited with LIC for making annuity payments to the land oustees and Rs 275.05 crore (31 March 2016: Rs 275.05 crore, 1 April 2015: Rs Nil) towards the amount deposited with the Water Resource Department, Govt. of Chhattisgarh for drawl of water.

b) Advances - Others include prepaid expenses amounting to Rs 88.43 crore (31 March 2016: Rs 84.52 crore, 1 April 2015: Rs 69.55 crore) and unamortized discount on commercial paper amounting to Rs 21.89 crore (31 March 2016: Rs Nil, 1 April 2015: Rs Nil).

c) Advances - Related parties include amounts due from the following private companies in which one or more directors of the Company are directors:

NTPC-GE Power Services Private Ltd. (Previously NTPC-Alstom Power Services Private Ltd.) 0.07 0.09 -
NTPC BHEL Power Projects Private Ltd. 0.22 - -

d) Loans given to employees are measured at amortised cost. The deferred payroll expenditure represents the benefits accruing to employees. The same is amortised on a straight line basis over the remaining period of the loan.

20. Regulatory deferral account debit balances

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
On account of employee benefits expense 522.83 - -

Regulatory deferral account balances have been accounted in line with Accounting policy no. C.4. Refer Note 68 for detailed disclosures.

21. Equity share capital

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Equity share capital
Authorised
10,00,00,00,000 shares of par value 10/- each (10,00,00,00,000 shares of par value 10/- each as at 31 March 2016 and 1 April 2015) 10,000.00 10,000.00 10,000.00
Issued, subscribed and fully paid up
8,24,54,64,400 shares of par value Rs 10/- each (8,24,54,64,400 shares of par value 10/- each as at 31 March 2016 and 1 April 2015) 8,245.46 8,245.46 8,245.46

a) Movements in equity share capital:

During the year, the Company has neither issued nor bought back any shares.

b) Terms and rights attached to equity shares:

The Company has only one class of equity shares having a par value 10/- 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.

c) Dividends:

Rs Crore
Particulars 2016-17 2015-16
(i) Equity shares - Dividend paid during the year
Final dividend for the year ended 31 March 2016 of Rs 1.75 (31 March 2015: 1.75) per fully paid share 1,442.96 1,442.96
Interim dividend for the year ended 31 March 2017 of Rs 2.61 (31 March 2016: 1.60) per fully paid share 2,152.07 1,319.28
(ii) Equity shares - Dividends not recognised at the end of the reporting period
In addition to the above dividends, since year end the directors have recommended the payment of a final dividend of Rs 2.17 (31 March 2016: 1.75) per fully paid equity share. This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting. 1,789.27 1,442.96

d) Details of shareholders holding more than 5% shares in the Company:

Particulars 31.03.2017 31.03.2016 01.04.2015
Nos. % age Nos. % age Nos. % age
- President of India 5,750,759,170 69.74 5,768,341,760 69.96 6,180,614,980 74.96
- Life Insurance Corporation of India (including shares held in various Funds/Schemes) 998,258,968 12.11 1,070,530,189 12.98 817,585,952 9.92

22. Other equity

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Capital reserve 50.08 50.08 50.08
Securities premium account 2,228.46 2,228.46 2,228.34
Bonds/debentures redemption reserve 5,961.81 4,608.73 3,624.60
Fly ash utilisation reserve fund 556.68 478.21 401.14
Corporate social responsibility (CSR) reserve - - 78.30
General reserve 76,831.63 72,331.63 66,331.63
Retained earnings 2,342.11 3,371.41 2,870.55
Other reserves- FVTOCI reserve 15.00 (20.28) -
Total 87,985.77 83,048.24 75,584.64
Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
(a) Capital reserve
Opening balance 50.08 50.08
Less: Adjustments during the year - -
Closing balance 50.08 50.08
Capital reserve represents amount received by the Company during 2001-02 as consideration under settlement for withdrawal from a erstwhile JV project.
(b) Securities premium account
Opening balance 2,228.46 2,228.34
Add : Received during the year - 0.12
Closing balance 2,228.46 2,228.46
Securities premium account is used to record the premium on issue of shares/securities. This amount is utilised in accordance with the provisions of the Companies Act, 2013.
(c) Bonds/Debentures redemption reserve
Opening balance 4,608.73 3,624.60
Add : Transfer from retained earnings 1,667.08 1,284.13
Less : Transfer to retained earnings 314.00 300.00
Closing balance 5,961.81 4,608.73

In accordance with applicable provisions of the Companies Act, 2013 read with Rules and as per decision of Board of Directors, the Company has created Debenture Redemption Reserve (DRR) out of profits of the Company @ 50% of the value of debentures on a prudent basis, every year in equal installments till the year prior to the year of redemption of debentures/bonds for the purpose of redemption of bonds/debentures.

(d) Fly ash utilisation reserve fund
Opening balance 478.21 401.14
Add: Transfer from
NTPC Vidyut Vyapar Nigam Ltd. (NVVN) - 1.67
Revenue from operations 108.42 113.37
Other income 27.63 24.60
Less: Utilised during the year
Capital expenditure 3.66 5.26
Employee benefits expense 20.80 16.87
Other administration expenses 33.12 40.44
Closing balance 556.68 478.21

Pursuant to gazette notification dated 3 November 2009, issued by the Ministry of Environment and Forest (MOEF), Government of India (GOI), the amount collected from sale of fly ash and fly ash based products should be kept in a separate account head and shall be utilized only for the development of infrastructure or facility, promotion & facilitation activities for use of fly ash until 100 percent fly ash utilization level is achieved.

During the year, proceeds of Rs 108.42 crore (31 March 2016: Rs 113.37 crore) from sale of ash/ash products, 27.63 crore (31 March 2016: Rs 24.60 crore) towards income on investment have been transferred to fly ash utilisation reserve fund. Further, interest on investments of Rs 1.67 crore (31 March 2016) maintained by NVVN Ltd. has been transferred to fly ash utilisation reserve fund. An amount of Rs 57.58 crore (31 March 2016: Rs 62.57 crore) has been utilized from the fly ash utilisation reserve fund on expenses incurred for activities as specified in the aforesaid notification of MOEF.

Out of fund balance of Rs 556.68 crore (31 March 2016: Rs 478.21 crore), Rs Nil (31 March 2016: Rs 343.63 crore) is invested in mutual funds - Note 13. Further, the balance amount has been kept in ‘Bank balances other than cash & cash equivalents' (Note 16).

(e) Corporate social responsibility (CSR) reserve
Opening balance - 78.30
Less: Transfer to retained earnings - 78.30
Closing balance - -

In terms of Section 135 of the Companies Act, 2013 read with guidelines on corporate social responsibility issued by Department of Public Enterprises (DPE), GOI, the Company is required to spend, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial years in accordance with its CSR Policy. The Company has spent an amount of Rs 277.81 crore during the year (31 March 2016: Rs 491.42 crore). The amount equivalent to unspent CSR expenditure of Rs 78.30 crore transferred in 2014-15 to CSR reserve from retained earnings, has been transferred back to retained earnings during the year 2015-16 on actual expenditure.

(f) General reserve
Opening balance 72,331.63 66,331.63
Add : Transfer from retained earnings 4,500.00 6,000.00
Closing balance 76,831.63 72,331.63
(g) Retained earnings
Opening balance 3,371.41 2,870.55
Add: Profit for the year as per Statement of Profit and Loss 9,385.26 10,769.60
Transfer from bonds/debentures redemption reserve 314.00 300.00
Transfer from CSR reserve - 78.30
Less: Transfer to bonds/debentures redemption reserve 1,667.08 1,284.13
Transfer to general reserve 4,500.00 6,000.00
Final dividend paid 1,442.96 1,442.96
Tax on final dividend paid 289.68 293.75
Interim dividend paid 2,152.07 1,319.28
Tax on interim dividend paid 438.11 268.57
2,580.77 3,409.76
Items of other comprehensive income recognised directly in retained earnings:
- Net actuarial gains/(losses) on defined benefit plans, net of tax (238.66) (38.35)
Closing balance 2,342.11 3,371.41
Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
(h) Other reserves- FVTOCI reserve
Opening balance (20.28) -
Add: Fair value gain/(loss) on equity instruments for the year 35.28 (20.28)
Closing balance 15.00 (20.28)

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within FVTOCI reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

23. Non-current financial liabilities -Borrowings

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Bonds/debentures
Secured
7.37% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2035 (Fifty Sixth Issue - Public Issue - Series 3A)XI 188.94 188.96 -
7.62% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2035 (Fifty Sixth Issue - Public Issue - Series 3B)XI 171.71 171.72 -
8.61% Tax free secured non-cumulative non-convertible redeemable bonds of Rs 10,00,000/- each redeemable at par in full on 4 March 2034 (Fifty First Issue C - Private Placement)III 322.11 322.11 322.11
8.66% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2033 (Fiftieth Issue - Public Issue - Series 3A)VII 319.87 319.93 319.87
8.91% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2033 (Fiftieth Issue - Public Issue - Series 3B)VII 410.32 410.39 410.32
7.37% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 14 December 2031 (Sixty Sixth Issue - Private Placement)XIII 4,010.34 - -
7.49% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 7 November 2031 (Sixty Fourth Issue - Private Placement)XII 720.58 - -
7.28% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2030 (Fifty Sixth Issue - Public Issue - Series 2A)XI 133.44 133.45 -
7.53% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2030 (Fifty Sixth Issue - Public Issue - Series 2B)XI 49.88 49.88 -
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
8.63% Tax free secured non-cumulative non-convertible redeemable bonds of Rs 10,00,000/- each redeemable at par in full on 4 March 2029 (Fifty First Issue B - Private Placement)III 105.70 105.70 105.69
8.48% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2028 (Fiftieth Issue - Public Issue - Series 2A)VII 256.10 256.14 256.10
8.73% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2028 (Fiftieth Issue - Public Issue - Series 2B)VII 93.71 93.73 93.71
7.47% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 16 September 2026 (Sixty Third Issue - Private Placement)XII 696.77 - -
7.58% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 23 August 2026 (Sixty Second Issue - Private Placement)XII 836.47 - -
8.05% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 5 May 2026 (Sixtieth Issue - Private Placement)XII 1,072.76 - -
8.19% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 10,00,000/- each redeemable at par in full on 15 December 2025 (Fifty Seventh Issue - Private Placement)XII 511.77 511.83 -
7.11% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2025 (Fifty Sixth Issue - Public Issue - Series 1A)XI 111.96 111.95 -
7.36% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 1,000/- each redeemable at par in full on 5 October 2025 (Fifty Sixth Issue - Public Issue - Series 1B)XI 68.15 68.15 -
7.15% Tax free secured non-cumulative non-convertible redeemable bonds - 2015 of Rs 10,00,000/- each redeemable at par in full on 21 August 2025 (Fifty Fifth Issue - Private Placement)IX 313.05 313.13 -
9.17% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 22 September 2024 (Fifty Third Issue - Private Placement)IX 1,047.99 1,048.10 1,047.99
9.34% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 24 March 2024 (Fifty Second Issue - Private Placement)III 751.54 751.54 751.53
8.19% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 10,00,000/- each redeemable at par in full on 4 March 2024 (Fifty First Issue A - Private Placement)III 75.47 75.47 75.47
8.41% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2023 (Fiftieth Issue - Public Issue - Series 1A)VII 499.95 500.03 499.95
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
8.66% Tax free secured non-cumulative non-convertible redeemable bonds - 2013 of Rs 1,000/- each redeemable at par in full on 16 December 2023 (Fiftieth Issue - Public Issue - Series 1B)VII 213.89 213.92 213.89
9.25% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each with five equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 11 year and in annual installments thereafter upto the end of 15 year respectively commencing from 04 May 2023 and ending on 04 May 2027 (Forty Fourth Issue - Private Placement)VII 542.07 542.07 542.07
8.48% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 1 May 2023 (Seventeenth Issue - Private Placement)I 50.01 50.01 50.01
8.80% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 4 April 2023 (Forty Ninth Issue - Private Placement)VII 217.46 217.46 217.46
8.49% Secured non-cumulative non-convertible redeemable taxable fully paid-up bonus debentures of Rs 12.50 each redeemable at par in three annual installments of Rs 2.50, Rs 5.00 and Rs 5.00 at the end of 8th year, 9th year and 10th year on 25 March 2023, 25 March 2024 and 25 March 2025 respectively (Fifty Fourth Issue -Bonus Debentures)X 10,318.82 10,316.42 10,323.57
8.73% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 7 March 2023 (Forty Eighth Issue - Private Placement)VII 301.79 301.79 301.79
9.00% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each with five equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 11th year and in annual installments thereafter upto the end of 15th year respectively commencing from 25 January 2023 and ending on 25 January 2027 (Forty Second Issue - Private Placement)III 508.14 508.24 508.14
8.84% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 4 October 2022 (Forty Seventh Issue - Private Placement)VII 406.91 406.96 406.91
6.72% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 24 November 2021 (Sixty Fifth Issue - Private Placement)XII 716.26 - -
8.10% Secured non-cumulative non-convertible redeemable taxable bonds of 30,00,000/- each redeemable at par in three equal separately transferable redeemable principal parts (STRPP) at the end of 5th year, 10th year & 15th year on 27 May 2021, 27 May 2026 and 27 May 2031 respectively (Sixty First Issue - Private Placement)XI 1,145.94 - -
8.33% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 24 February 2021 (Fifty Ninth Issue - Private Placement)XII 660.18 660.27 -
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
8.93% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 19 January 2021 (Thirty Seventh Issue - Private placement)III 317.17 317.17 317.17
8.18% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 31 December 2020 (Fifty Eighth Issue - Private Placement)XII 305.92 305.92 -
8.73% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 31 March 2020 (Thirty Third Issue- Private Placement)III 209.97 209.97 209.97
8.78% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 9 March 2020 (Thirty First Issue- Private Placement)III 531.27 531.27 531.27
11.25% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in five equal annual installments commencing from 6 November 2019 and ending on 6 November 2023 (Twenty Seventh Issue - Private Placement)III 368.12 368.12 368.12
7.89% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 5 May 2019 (Thirtieth Issue - Private Placement)III 701.82 701.82 701.82
8.65% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 4 February 2019 (Twenty Ninth Issue - Private Placement)III 552.87 552.87 552.87
7.50% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 12 January 2019 (Nineteenth Issue - Private Placement)II 50.92 50.92 50.92
11.00% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 21 November 2018 (Twenty Eighth Issue - Private Placement)III 1,027.42 1,027.42 1,027.42
9.3473% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 20 July 2018 and ending on 20 July 2032 (Forty Sixth Issue - Private Placement)VII 80.07 80.10 80.09
9.4376% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 16 May 2018 and ending on 16 May 2032 (Forty Fifth Issue - Private Placement)VII 80.12 80.14 80.14
8.00% Secured non-cumulative non-convertible redeemable taxable bonds of 10,00,000/- each redeemable at par in full on 10 April 2018 (Sixteenth Issue -Private Placement)I 103.33 103.33 103.33
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
9.2573% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 2 March 2018 and ending on 2 March 2032 (Forty Third Issue - Private Placement)III 80.02 80.05 80.04
9.6713% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6 year and in annual installments thereafter upto the end of 20th year respectively commencing from 23 December 2017 and ending on 23 December 2031 (Forty First Issue - Private Placement)III 80.25 80.27 80.27
9.558% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 29 July 2017 and ending on 29 July 2031 (Fortieth Issue - Private Placement)III 80.18 80.20 80.20
9.3896% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 9 June 2017 and ending on 9 June 2031 (Thirty Ninth Issue - Private Placement)III 112.13 112.16 112.16
9.17% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 22 March 2017 and ending on 22 March 2031 (Thirty Eighth Issue - Private Placement)III 74.64 79.99 79.99
8.8086% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 15 December 2016 and ending on 15 December 2030 (Thirty Sixth Issue - Private Placement)III 74.46 79.80 79.80
8.785% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 15 September 2016 and ending on 15 September 2030 (Thirty Fifth Issue - Private Placement)III 119.12 127.65 127.65
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
8.71% Secured non-cumulative non-convertible redeemable taxable bonds of 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 10 June 2016 and ending on 10 June 2030 (Thirty Fourth Issue - Private Placement)III 148.82 159.49 159.49
8.8493% Secured non-cumulative non-convertible redeemable taxable bonds of Rs 15,00,000/- each with fifteen equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of 6th year and in annual installments thereafter upto the end of 20th year respectively commencing from 25 March 2016 and ending on 25 March 2030 (Thirty Second Issue - Private Placement)III 96.82 104.30 111.75
9.37% Secured non-cumulative non-convertible redeemable taxable bonds of 70,00,000/- each with fourteen separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 4 June 2012 and ending on 4 December 2018 (Twenty Fifth Issue - Private Placement)III 146.78 220.43 294.07
9.06% Secured non-cumulative non-convertible redeemable taxable bonds of 70,00,000/- each with fourteen separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 4 June 2012 and ending on 4 December 2018 (Twenty Sixth Issue - Private Placement)III 146.64 220.21 293.79
8.6077% Secured non-cumulative non-convertible redeemable taxable bonds of 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 9 September 2011 and ending on 9 March 2021 (Twenty Fourth Issue - Private Placement)IV 204.24 255.31 306.37
8.3796% Secured non-cumulative non-convertible redeemable taxable bonds of 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 5 August 2011 and ending on 5 February 2021 (Twenty Third Issue - Private Placement)IV 204.13 255.16 306.20
8.1771% Secured non-cumulative non-convertible redeemable taxable bonds of 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 2 July 2011 and ending on 2 January 2021 (Twenty Second Issue - Private Placement)IV 204.03 255.04 306.05
7.7125% Secured non-cumulative non-convertible redeemable taxable bonds of 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 2 August 2010 and ending on 2 February 2020 (Twenty First Issue - Private Placement)V 305.71 407.61 509.51
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
7.552% Secured non-cumulative non-convertible redeemable taxable bonds of 20,00,000/- each with twenty equal separately transferable redeemable principal parts (STRPP) redeemable at par semi-annually commencing from 23 September 2009 and ending on 23 March 2019 (Twentieth Issue - Private Placement)VI 101.86 152.79 203.72
9.55% Secured non-cumulative non-convertible taxable redeemable bonds of 10,00,000/- each with ten equal separately transferable redeemable principal parts (STRPP) redeemable at par at the end of the 6th year and in annual installments thereafter upto the end of 15th year respectively from 30 April 2002 (Thirteenth Issue - Part B - Private Placement)VIII 77.37 154.75 232.12
9.55% Secured non-cumulative non-convertible taxable redeemable bonds of 10,00,000/- each redeemable at par in ten equal annual installments commencing from the end of 6th year and upto the end of 15th year respectively from 18 April 2002 (Thirteenth Issue -Part A - Private Placement)VIII 77.38 154.75 232.12
34,513.63 25,958.36 24,065.00
Foreign currency notes
Unsecured
2.750 % Fixed rate notes due for repayment on 1 February 2027 3,529.38 - -
4.250 % Fixed rate notes due for repayment on 26 February 2026 3,274.75 3,331.41 -
4.375 % Fixed rate notes due for repayment on 26 November 2024 3,336.43 3,395.81 3,207.50
4.750 % Fixed rate notes due for repayment on 3 October 2022 3,286.50 3,345.00 3,159.50
7.375 % Fixed green global INR denominated bonds due on 10 August 2021 2,066.05 - -
5.625 % Fixed rate notes due for repayment on 14 July 2021 3,326.04 3,385.24 3,197.51
5.875 % Fixed rate notes due for repayment on 2 March 2016 - - 1,904.67
Term loans
From Banks
Unsecured
Foreign currency loans 7,782.47 9,068.32 8,679.23
Rupee loans 29,979.46 28,313.44 23,418.16
From Others
Unsecured
Foreign currency loans (guaranteed by GOI) 2,102.96 2,309.97 2,193.77
Other foreign currency loans 3,516.85 3,660.51 3,232.07
Rupee loans 8,141.03 9,694.58 13,597.10
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Finance lease obligations
Secured 2.40 1.94 -
Unsecured 142.62 138.43 103.46
105,000.57 92,603.01 86,757.97
Less:
Current maturities of
Bonds-secured 650.00 628.00 600.00
5.875 % Fixed rate notes - - 1,895.70
Foreign currency loans from banks - unsecured 1,681.74 1,328.91 281.82
Rupee loans from banks - unsecured 2,111.00 2,573.75 2,540.48
Foreign currency loans from other - unsecured (guaranteed by GOI) 172.58 175.16 154.61
Other foreign currency loans from others - unsecured 507.52 474.99 406.03
Rupee loans from others - unsecured 1,359.38 1,534.38 1,584.38
Finance lease obligations - secured 0.78 0.48 -
Finance lease obligations - unsecured 17.37 15.12 3.15
Interest accrued but not due on borrowings 1,160.92 775.27 727.29
Total 97,339.28 85,096.95 78,564.51

a) Details of terms of repayment and rate of interest i) Unsecured foreign currency loans (guaranteed by GOI) - Others carry fixed rate of interest ranging from 1.80% p.a. to 2.30% p.a. and are repayable in 19 to 28 semi annual installments as of 31 March 2017.

ii) Unsecured foreign currency loans – Banks include loans of Rs 463.02 crore (31 March 2016: Rs 590.36 crore, 1 April 2015: Rs 645.70 crore) which carry fixed rate of interest of 1.88% p.a. to 4.31% p.a. and loans of Rs 7,319.45 crore (31 March 2016: Rs 8,477.96 crore, 1 April 2015: Rs 8,033.53 crore) which carry floating rate of interest linked to 6M LIBOR. These loans are repayable in 2 to 23 semi annual installments as of 31 March 2017, commencing after moratorium period if any, as per the terms of the respective loan agreements.

iii) Unsecured foreign currency loans – Others include loans of Rs 3,300.64 crore (31 March 2016: Rs 3,165.62 crore, 1 April 2015: Rs 2,526.24 crore) which carry fixed rate of interest ranging from 1.88% p.a. to 4.31% p.a and loans of Rs 216.21 crore (31 March 2016: Rs 494.89 crore, 1 April 2015: Rs 705.83 crore) which carry floating rate of interest linked to 6M LIBOR/6M EURIBOR. These loans are repayable in 1 to 24 semi annual installments as of 31 March 2017, commencing after moratorium period if any, as per the terms of the respective loan agreements. iv) Unsecured rupee term loans carry interest rate ranging from 6.571% p.a. to 11.00% p.a. with monthly/half-yearly rests. These loans are repayable in quarterly/half-yearly/yearly installments as per the terms of the respective loan agreements. The repayment period extends from a period of seven years to sixteen years after a moratorium period of two years to six years.

b) The finance lease obligations are repayable in installments as per the terms of the respective lease agreements generally over a period of four to ninety-nine years. c) There has been no default in repayment of any of the loans or interest thereon as at the end of the year.

Details of securities

I Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage, by way of first charge, by deposit of title deeds of the immovable properties pertaining to National Capital Power Station.

II Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Hypothecation of all the present and future movable assets (excluding receivables) of Singrauli Super Thermal Power Station, Anta Gas Power Station, Auraiya Gas Power Station, Barh Super Thermal Power Project, Farakka Super Thermal Power Station, Kahalgaon Super Thermal Power Station, Koldam Hydel Power Project, Simhadri Super Thermal Power Project, Sipat Super Thermal Power Project, Talcher Thermal Power Station, Talcher Super Thermal Power Project, Tanda Thermal Power Station, Vindhyachal Super Thermal Power Station, National Capital Power Station, Dadri Gas Power Station, Feroze Gandhi Unchahar Power Station and Tapovan-Vishnugad Hydro Power Project as first charge, ranking pari-passu with charge, if any, already created in favour of the Company's Bankers on such movable assets hypothecated to them for working capital requirement.

III Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Sipat Super Thermal Power Project by extension of charge already created.

IV Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage, by way of first charge, by deposit of the title deeds of the immovable properties pertaining to Sipat Super Thermal Power Project.

V Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai,

(II) Hypothecation of all the present and future movable assets (excluding receivables) of Barh Super Thermal Power Project on first pari-passu charge basis, ranking pari-passu with charge already created in favour of Trustee for other Series of Bonds and

(III) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Ramagundam Super Thermal Power Station by extension of charge already created.

VI Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage, by way of first charge, by deposit of title deeds of the immovable properties pertaining to Ramagundam Super Thermal Power Station.

VII Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai and (II) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to National Capital Power Station by extension of charge already created.

VIII Secured by (I) English mortgage, on first pari-passu charge basis, of the office premises of the Company at Mumbai,

(II) Hypothecation of all the present and future movable assets (excluding receivables) of Singrauli Super Thermal

Power Station, Anta Gas Power Station, Auraiya Gas Power Station, Barh Super Thermal Power Project, Farakka

Super Thermal Power Station, Kahalgaon Super Thermal Power Station, Koldam Hydel Power Project, Simhadri

Super Thermal Power Project, Sipat Super Thermal Power Project, Talcher Thermal Power Station, Talcher Super Thermal Power Project, Tanda Thermal Power Station, Vindhyachal Super Thermal Power Station, National Capital

Power Station, Dadri Gas Power Station, Feroze Gandhi Unchahar Power Station and Tapovan-Vishnugad Hydro

Power Project as first charge, ranking pari-passu with charge, if any, already created in favour of the Company's Bankers on such movable assets hypothecated to them for working capital requirement and (III) Equitable mortgage of the immovable properties, on first pari-passu charge basis, pertaining to Singrauli Super Thermal Power Station by extension of charge already created.

IX Secured by English mortgage of the immovable properties pertaining to Solapur Super Thermal Power Project on first charge basis.

X Secured by Equitable mortgage of the immovable properties pertaining to Barh Super Thermal Power Project on first charge basis.

XI Secured by English mortgage, on pari-passu charge basis, of the immovable properties pertaining to Solapur Super Thermal Power Project.

XII Secured by Equitable mortgage, on pari-passu charge basis, of the immovable properties pertaining to Barh Super Thermal Power Project.

XIII Secured by Equitable mortgage of the immovable properties pertaining to Vindhyachal Super Thermal Power Station on first charge basis.

XIV Security cover mentioned at Sl. No. I to XIII is above 100% of the debt securities outstanding.

24. Non-current financial liabilities - Trade payables

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Trade payable 13.17 8.37 3.47

25. Non-current liabilities - Other financial liabilities

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Other liabilities
Payable for capital expenditure 1,999.77 2,634.51 2,211.69
Deposits from contractors and others 1.72 1.79 2.03
Others 245.64 362.97 -
Total 2247.13 2999.27 2213.72

Other liabilities - others mainly include amount payable to the Department of Water Resource, Government of Odisha pursuant to the Resolution No. 11011 dated 18 May 2015.

26. Non-current liabilities - Provisions

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Provision for employee benefits 463.15 436.41 1,115.71

Disclosure as per Ind AS 19 on ‘Employee benefits' is made in Note 56.

27. Non-current liabilities - Deferred tax liabilities (net)

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Deferred tax liability
Difference in book depreciation and tax depreciation 10,065.74 8,153.37 7,761.51
Less: Deferred tax assets
Provisions 1,025.09 713.01 544.32
Statutory dues 492.37 174.44 129.64
Leave encashment 430.69 342.45 332.41
Others 93.08 107.86 156.30
8,024.51 6,815.61 6,598.84
Less: Deferred asset for deferred tax liability 6,539.67 5,663.40 5,619.77
Total 1,484.84 1,152.21 979.07

a) Deferred tax assets and deferred tax liabilities have been offset as they relate to the same governing laws.

b) CERC Regulations, 2014 provide for recovery of deferred tax liability as on 31 March 2009 from the beneficiaries. Accordingly, deferred tax liability as on 31 March 2009 is recoverable on materialisation from the beneficiaries. For the period commencing from 1 April 2014, Regulations, 2014 provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. Deferred asset for deferred tax liability for the year will be reversed in future years when the related deferred tax liability forms part of current tax.

Movement in deferred tax balances

31 March 2017 Rs Crore
Particulars Net balance 1 April 2016 Recognised in profit or loss Recognised in OCI Other Net balance 31 March 2017
Difference in book depreciation and tax depreciation 8,153.37 1,912.37 - - 10,065.74
Provisions 713.01 312.08 - - 1,025.09
Statutory dues 174.44 317.93 - - 492.37
Leave encashment 342.45 88.24 - - 430.69
Others 107.86 (14.78) - - 93.08
Tax assets/(liabilities) 6,815.61 1,208.90 - - 8,024.51
Less: Deferred asset for deferred tax liability 5,663.40 876.27 - - 6,539.67
Net tax assets/(liabilities) 1,152.21 332.63 - - 1,484.84
31 March 2016 Rs Crore
Particulars Net balance 1 April 2015 Recognised in profit or loss Recognised in OCI Other Net balance 31 March 2016
Difference in book depreciation and tax depreciation 7,761.51 391.86 - - 8,153.37
Provisions 544.32 168.69 - - 713.01
Statutory dues 129.64 44.80 - - 174.44
Leave encashment 332.41 10.04 - - 342.45
Others 156.30 (48.44) - - 107.86
Tax assets/(liabilities) 6,598.84 216.77 - - 6,815.61
Less: Deferred asset for deferred tax liability 5,619.77 43.63 - - 5,663.40
Net tax assets/(liabilities) 979.07 173.14 - - 1,152.21

28 Non-current liabilities - Other non-current liabilities

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Advance from customers and others 17.49 49.68 0.01

Represents deposits received from the contractors, customers and other parties for Deen Dayal Upadhayay Gram Jyoti Yojna. Refer Note 32.

29. Current financial liabilities -Borrowings

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Loans repayable on demand
From banks
Unsecured
Cash credit 0.56 1,299.50 -
Other loans
Unsecured
Commercial paper 3,000.00 - -
Total 3,000.56 1,299.50 -

There has been no default in servicing of loan as at the end of the year.

30. Current financial liabilities - Trade payables

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
For goods and services 4,876.08 5,311.64 5,953.15

31. Current liabilities - Other financial liabilities

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Current maturities of long term borrowings
Bonds - Secured 650.00 628.00 600.00
5.875% Foreign currency fixed rate notes - Unsecured - - 1,895.70
From Banks
Unsecured
Foreign currency loans 1,681.74 1,328.91 281.82
Rupee term loans 2,111.00 2,573.75 2,540.48
From Others
Unsecured
Foreign currency loans (guaranteed by GOI) 172.58 175.16 154.61
Other foreign currency loans 507.52 474.99 406.03
Rupee term loans 1,359.38 1,534.38 1,584.38
6,482.22 6,715.19 7,463.02
Current maturities of finance lease obligations - Secured 0.78 0.48 -
Current maturities of finance lease obligations - Unsecured 17.37 15.12 3.15
Interest accrued but not due on borrowings 1,160.92 775.27 727.29
Unpaid dividends 17.61 15.05 14.95
Unpaid matured deposits and interest accrued thereon 0.19 0.19 0.21
Unpaid matured bonds and interest accrued thereon 3.29 2.28 0.72
Unpaid bond refund money-Tax free bonds 0.26 0.45 0.16
Payable to customers 802.95 763.99 374.45
Book overdraft - 400.00 546.01
Payable for capital expenditure 9,578.24 7,926.23 6,421.73
Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Hedging cost payable to beneficiaries - 3.66 -
Derivative MTM liability 1.60 0.04 4.59
Other payables
Deposits from contractors and others 124.69 140.04 124.86
Payable to employees 516.88 269.17 318.74
Others 472.40 417.86 437.44
Total 19,179.40 17,445.02 16,437.32

a) Details in respect of rate of interest and terms of repayment of current maturities of secured and unsecured long term borrowings indicated above are disclosed in Note 23.

b) Unpaid dividends, matured deposits, bonds and interest include the amounts which have either not been claimed by the investors/holders of the equity shares/bonds/fixed deposits or are on hold pending legal formalities etc. Out of the above, the amount required to be transferred to Investor Education and Protection Fund has been transferred.

c) The Company had obtained exemption from the Ministry of Corporate Affairs (MCA), GOI in respect of applicability of Section 58A from the erstwhile Companies Act, 1956 in respect of deposits held from the dependants of employees who die or suffer permanent total disability under the ‘Employees Rehabilitation Scheme' (said amount is included in Other payable - Others). Consequent upon enactment of the Companies Act, 2013, the Company has written to the MCA for clarification on continuation of above exemption granted earlier, which is still awaited. The Company has been advised that the amount accepted under the Scheme is not a deposit under the Companies Act, 2013.

d) Other payables - Others mainly include amount payable to the Department of Water Resource, Government of Odisha, payable to hospitals, parties for stale cheques etc.

32. Current liabilities - Other current liabilities

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Advances from customers and others 690.10 476.55 87.26
Other payables
Statutory dues 391.06 298.95 286.11
Others - 0.09 0.08
Total 1,081.16 775.59 373.45

Implementation of Deen Dayal Upadhyay Gram Jyoti Yojana (DDUGJY) Scheme of GOI is being carried out by the Company. The funds for the implementation of these schemes are provided by the agencies nominated by the GOI in this regards. Advance received for the DDUGJY (including interest thereon) of Rs 597.75 crores (31 March 2016: 388.87 crores, 1 April 2015: Rs Nil) is included in ‘Advance from customers and others'.

33. Current liabilities - Provisions

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Provision for
Employee benefits 2,388.05 1,240.78 1,174.66
Obligations incidental to land acquisition 3,695.78 3,736.84 3,098.72
Tariff adjustment 1,170.79 1,234.41 1,243.64
Others 710.30 563.66 505.02
Total 7,964.92 6,775.69 6,022.04

a) Disclosures required by Ind AS 19 ‘Employee Benefits' is made in Note 56.

b) Disclosure required by Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets' is made in Note 61.

c) The pay revision of the employees of the Company is due w.e.f 1 January 2017. Department of Public Enterprises, GOI (DPE) has constituted the 3rd Pay Revision Committee to review the structure of pay scales and allowances/ benefits of various categories of Central Public Sector Enterprises and suggest changes after taking in to account 7th Central Pay Commission recommendations applicable to central government employees. The recommendations of the committee have been submitted and guidelines are yet to be issued by DPE. Pending issuance of the same, provision for the year amounting to Rs 260.24 crore has been made towards pay revision on an estimated basis having regard to the recommendations of the 3rd Pay Revision Committee.

Further, the 3rd Pay Revision Committee appointed by the GOI has enhanced the ceiling of gratuity limit from Rs 0.10 crore to Rs 0.20 crore. Accordingly, provision for gratuity as at 31 March 2017 has been made for Rs 614.25 crore considering the enhanced ceiling based on the actuarial report. d) The Company aggrieved over many of the issues considered by the CERC in the tariff orders for its stations for the period 2004-09 had filed appeals with the Appellate Tribunal for Electricity (APTEL). The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per directions and methodology given. Some of the issues decided in favour of the Company by the APTEL were challenged by the CERC in the Hon'ble Supreme Court of India. Subsequently, the CERC has issued revised tariff orders for all the stations except one for the period 2004-09, considering the judgment of APTEL subject to disposal of appeals pending before the Hon'ble Supreme Court of India. Towards the above and other anticipated tariff adjustments, provision of Rs 98.88 crore(31 March 2016: 145.28 crore, 1 April 2015: Rs 148.10 crore) has been made during the year and in respect of some of the stations, an amount of 162.49 crore (31 March 2016: Rs 154.51 crore, 1 April 2015: Rs 180.16 crore) has been written back.

e) Provision for others comprise Rs 68.24 crore (31 March 2016: Rs 65.35 crore, 1 April 2015: Rs 58.64 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to block AA-ONN-2003/2 [Refer Note 63], Rs 640.25 crore (31 March 2016: 496.44 crore, 1 April 2015: 440.35 crore) towards provision for cases under litigation and Rs 1.81 crore (31 March 2016: Rs 1.87 crore, 1 April 2015: Rs 6.03 crore) towards provision for shortage in fixed assets on physical verification pending investigation.

34. Current liabilities - current tax liabilities (net)

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Current tax (net of advance tax) 75.20 151.30 -

35. Deferred revenue

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
On account of advance against depreciation 247.02 279.94 409.20
On account of income from foreign currency fluctuation 1,376.67 1,642.07 960.46
On account of government grants 497.45 125.33 0.31
Total 2,121.14 2,047.34 1,369.97

a) Advance against depreciation (AAD) was an element of tariff provided under the Tariff Regulations for 2001-04 and 2004-09 to facilitate debt servicing by the generators since it was considered that depreciation recovered in the tariff considering a useful life of 25 years is not adequate for debt servicing. Though this amount is not repayable to the beneficiaries, keeping in view the matching principle, and in line with the opinion of the Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India (ICAI), this was treated as deferred revenue to the extent depreciation chargeable in the accounts is considered to be higher than the depreciation recoverable in tariff in future years. Since AAD is in the nature of deferred revenue and does not constitute a liability, it has been disclosed in this note separately from shareholders' funds and liabilities.

b) In line with significant accounting policy no. C.14 (Note 1), an amount of Rs 32.92 crore (31 March 2016: Rs 129.26 crore, 1 April 2015: Rs 75.03 crore) has been recognized during the year from the AAD and included in energy sales (Note 37).

c) Foreign exchange rate variation (FERV) on foreign currency loans and interest thereon is recoverable from/payable to the customers in line with the Tariff Regulations. Keeping in view the opinion of the EAC of ICAI, the Company is recognizing deferred foreign currency fluctuation asset by corresponding credit to deferred income from foreign currency fluctuation in respect of the FERV on foreign currency loans adjusted in the cost of fixed assets, which is recoverable from the customers in future years as provided in accounting policy no. C.14 (Note 1). This amount will be recognized as revenue corresponding to the depreciation charge in future years. The amount does not constitute a liability to be discharged in future periods and hence, it has been disclosed separately from shareholder's funds and liabilities.

d) Government grants include Rs 497.14 crore (31 March 2016: Rs 125.00 crore, 1 April 2015: Rs Nil) received from Solar Energy Corporation of India under MNRE Scheme for setting up 1,000 MW of grid connected solar PV power projects.

36. Regulatory deferral account credit balances

Rs Crore
Particulars As at 31.03.2017 As at 31.03.2016 As at 01.04.2015
Exchange differences 482.74 295.65 307.74

Regulatory deferral account balances have been accounted in line with Accounting policy no. C.4. Refer Note 68 for detailed disclosures.

37. Revenue from operations

Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Energy sales (including electricity duty) 77,071.11 69,961.62
Consultancy, project management and supervision fee 163.71 117.04
Lease rentals on assets on operating lease 240.42 223.25
77,475.24 70,301.91
Sale of fly ash/ash products 108.42 113.37
Less: Transferred to fly ash utilisation reserve fund 108.42 113.37
- -
Other operating revenues
Interest from beneficiaries 397.09 221.29
Energy internally consumed 68.93 81.82
Interest income on assets under finance lease 154.31 84.25
Recognised from deferred revenue - government grant 15.38 0.03
Provisions for tariff adjustments written back 162.49 154.51
798.20 541.90
Total 78,273.44 70,843.81

a) The CERC notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). The CERC has issued tariff orders for some of the stations for the period 2014-19 under Regulations 2014, and beneficiaries are billed based on such tariff orders issued by the CERC. For other stations, beneficiaries are billed in accordance with the principles given in the Regulations 2014. The energy charges in respect of the coal based stations are provisionally billed based on the GCV of coal ‘as received', measured after the secondary crusher till 30 September 2016 and on wagon top w.e.f. 1 October 2016 in respect of most of the stations barring a few on the grounds of safety issues, for the quantity supplied through conveyors/road and other difficulties. The amount provisionally billed is Rs 74,710.65 crore (31 March 2016: 69,616.43 crore).

b) The Company has filed a writ petition before the Hon'ble Delhi High Court contesting certain provisions of the Regulations, 2014. As per directions from the Hon'ble High Court on the issue of point of sampling for measurement of GCV of coal on ‘as received' basis, CERC has issued an order dated 25 January 2016 (subject to final decision of the Hon'ble High Court) that samples for measurement of coal on ‘as received' basis should be collected from wagon top at the generating stations. The Company's review petition before the CERC in respect of the above order was dismissed vide their order dated 30 June 2016. Vide order dated 10 November 2016, the Hon'ble Delhi High Court has permitted the company to approach the CERC with the difficulties being faced in implementation of the order of CERC in this regard. Accordingly, the Company has filed a petition with CERC, hearing of the same was held on 31 January 2017. Pending disposal of the petition by CERC and ratification by the Hon'ble Delhi High Court, measurement of GCV of coal from wagon top samples at the unloading point has started with effect from 1 October 2016 in respect of most of the stations barring a few on the grounds of safety issues, for the quantity supplied through conveyors/road and other diffculties. Sales has been provisionally recognized at Rs 75,800.54 crore (31 March 2016: Rs 71,355.67 crore) on the basis of said Regulations 2014, wherein energy charges included in sales, in respect of the coal based stations have been recognized based on the GCV of coal ‘as received' measured after secondary crusher till 30 September, 2016 and GCV measured on wagon top w.e.f. 1 October, 2016 in respect of most of the stations barring a few on the grounds of safety issues, for the quantity supplied through conveyors/road and other difficulties.

c) Sales include Rs 995.59 crore (31 March 2016: Rs 50.74 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL). d) Sales include Rs Nil (31 March 2016: (-) Rs 1,693.65 crore) on account of income-tax refundable to the beneficiaries as per Regulations, 2004. Sales also include Rs 46.04 crore (31 March 2016: Rs 28.12 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.

e) Energy sales include electricity duty amounting to Rs 697.99 crore (31 March 2016: 729.20 crore).

f) Energy sales are net of rebate to beneficiaries amounting to Rs 469.05 crore (31 March 2016: 508.46 crore).

g) Other operating revenue includes Rs 68.93 crore (31 March 2016: Rs 81.82 crore) towards energy internally consumed, valued at variable cost of generation and the corresponding amount is included in power charges in Note 42.

h) CERC Regulations provides that where after the truing-up, the tariff recovered is less/more than the tariff approved by the Commission, the generating Company shall recover/pay from/to the beneficiaries the under/over recovered amount along-with simple interest. Accordingly, the interest recoverable from the beneficiaries amounting to Rs 397.09 crore (31 March 2016: Rs 221.29 crore) has been accounted as ‘Interest from beneficiaries'. Further, the amount payable to the beneficiaries has been accounted as ‘Interest to beneficiaries' in Note 42.

i) One of the power stations of the Company, having 3 units of 95 MW each and two units of 210 MW each, was issued consent to operate (Renewal) order by Delhi Pollution Control Committee (DPCC) on 2 January 2014 which was valid till 31 January 2018 with a condition that particulate emission level shall not exceed 150 mg/Nm3. In a volte-face on 8 July 2015, DPCC issued a show cause notice to the station as to why four units out of five units of plant ought not to be closed down for failing to bring down its particulate emission level below 50 mg/Nm3. Further, vide order dated 31 December 2015, DPCC directed that four units out of five units of plant shall not operate. On 11 February 2016, DPCC modified the norms for particulate emission level of the consent to operate from 150 mg/Nm3 to 50 mg/ Nm3. Further, vide order dated 21 March 2016, DPCC allowed operation of 2 units of 210 MW subject to meeting the SPM of 50 mg/Nm3. Company's petition to direct beneficiaries for payment of fixed charges from 31 December 2015 under change in law is pending disposal before the CERC. Further, in view of severe pollution level in Delhi, DPCC vide order dated 6 November 2016, directed not to operate all units of station for 10 days which was subsequently extended till further orders. DPCC, vide order dated 14 March 2017 has allowed operation of two units of 210 MW each for the period from 15 March 2017 to 15 October 2017. NTPC filed a fresh petition before CERC to direct beneficiaries for payment of fixed charges for the closure from 7 November 2016 under change in law which is pending disposal before the CERC.

j) Keeping in view the provisions of Appendix C to Ind AS-17 on Leases w.r.t. determining whether an arrangement contains a lease, the Company has ascertained that the PPA entered into for two of the power stations of the Company fall under operating lease. Recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiaries are considered as lease rentals on the assets which are on operating lease.

k) Keeping in view the provisions of Appendix C to Ind AS-17 on Leases w.r.t. determining whether an arrangement contains a lease, the Company has ascertained that the PPA entered into for Stage-I of a power station with the beneficiary falls under the definition of finance lease. Accordingly, the written down value of the specified assets has been derecognized from PPE and accounted as Finance Lease Receivable (FLR). Recovery of capacity charges towards depreciation (including AAD), interest on loan capital & return on equity (pre-tax) components from the beneficiary are adjusted against FLR. The interest component of the FLR and amount received on account of revision of tariff of previous periods in respect of the above three elements are recognised as ‘Interest income on Assets under finance lease'.

38. Other income

Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Interest from
Financial assets at amortized cost
Long-term investments - Government securities (8.5% tax free bonds) - 105.28
Loan to state government in settlement of dues from customers (8.5% tax free) 2.03 10.17
Loan to subsidiary companies 5.07 0.45
Loan to employees 58.88 51.31
Deposits with banks/Reserve Bank of India 72.49 428.91
Deposits with banks out of fly ash utilisation reserve fund 23.92 7.57
Less : Transferred to fly ash utilisation reserve fund 23.92 7.57
- -
Deposits with banks - DDUGJY funds 36.27 29.40
Less : Transferred to DDUGJY advance from customers 36.27 29.40
Advance to contractors 44.69 49.48
Others 23.81 20.00
Dividend from
Long-term investments in
Subsidiaries 20.00 -
Joint ventures 143.09 131.76
Equity instruments designated at fair value through OCI 3.00 2.64
Current investments in
Mutual funds measured at fair value through profit or loss - 49.80
Current investments in mutual funds out of fly ash utilisation reserve fund 3.71 17.03
Less : Transferred to fly ash utilisation reserve fund 3.71 17.03
Other non-operating income
Surcharge received from beneficiaries 439.39 142.28
Hire charges for equipment 3.38 2.09
Gain on option contract - 5.07
Derivative MTM Gain - 8.22
Sale of scrap 83.13 58.17
Profit on redemption of current investments 24.81 16.34
Miscellaneous income 200.28 145.60
Profit on disposal of PPE 10.36 1.66
Provisions written back
Unservicable capital works 4.62 10.69
Others 7.76 10.23
1,146.79 1,250.15
Less: Transferred to expenditure during construction period (net) - Note 43 76.33 74.72
Transferred to development of coal mines - Note 4 1.60 1.86
Transferred to hedging cost recoverable/(payable) from/to beneficiaries - 8.22
Total 1,068.86 1,165.35

a) Interest from others includes interest on advance to APIIC for drawal of water and deposits with LIC towards annuity to the land losers. b) Miscellaneous income includes income from township recoveries and receipts towards insurance claims. c) Provisions written back - Others include provision for doubtful loans, advances, claims, debts and provision for shortage/obsolescence in stores and shortage in fixed assets.

39. Employee benefits expense

Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Salaries and wages 4,037.01 3,583.09
Contribution to provident and other funds 1,077.82 596.09
Staff welfare expenses 441.24 441.78
5,556.07 4,620.96
Less: Allocated to fuel cost 262.77 216.81
Transferred to development of coal mines - Note 4 57.26 46.99
Transferred to fly ash utilisation reserve fund 20.80 16.87
Transferred to CSR expenses 54.90 50.23
Reimbursements for employees on deputation 73.91 65.95
Transferred to expenditure during construction period (net)- Note 43 761.83 642.46
Total 4,324.60 3,581.65

a) Disclosures as per Ind AS 19 in respect of provision made towards various employee benefits are made in Note 56.

b) Salaries and wages include special allowance paid by the Company to eligible employees serving in difficult and far flung areas w.e.f. 26 November 2008. As per the Office Memorandum dated 26 November 2008 of DPE relating to revision of pay scales w.e.f 1 January 2007, special allowance can be paid to such employees upto 10% of basic pay as approved by concerned administrative ministry. In line with the office memorandum dated 22 June 2010 of

DPE, Board of Directors has approved the special allowance (Difficult and Far Flung Areas) to eligible employees. The approval of MOP for the same is awaited. c) The pay revision of the employees of the Company is due w.e.f 1 January 2017. The required provision towards revision of pay scales and gratuity has been made during the year. Refer Note 33 (c).

40. Finance costs

Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Finance charges on financial liabilities measured at amortised cost
Bonds 2,492.45 1,963.21
Foreign currency term loans 354.19 315.69
Rupee term loans 3,507.37 3,609.66
Foreign currency bonds/notes 763.41 701.61
Cash credit 7.30 1.95
Unwinding of discount on vendor liabilities 487.60 350.57
Discount on commercial papers 63.00 -
Others 0.47 2.26
7,675.79 6,944.95
Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Other borrowing costs
Guarantee fee 31.68 26.28
Management/arrangers fee - 5.81
Foreign currency bonds/notes expenses 0.57 0.04
Others 14.24 17.29
46.49 49.42
Sub-Total 7,722.28 6,994.37
Less: Transferred to expenditure during construction period (net) - Note 43 4,005.33 3,584.80
Transferred to development of coal mines - Note 4 119.75 113.16
Total 3,597.20 3,296.41

a) Other borrowing costs - Others include bond issue & service expenses, commitment charges, exposure premium and insurance premium & legal expenses on foreign currency loans.

41. Depreciation, amortization and impairment expense

Particulars Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
On property, plant and equipment - Note 2 6,570.06 5,689.15
On intangible assets - Note 3 22.37 19.31
6,592.43 5,708.46
Less:
Allocated to fuel cost 345.93 326.74
Transferred to expenditure during construction period (net) - Note 43 148.38 90.73
Transferred to development of coal mines - Note 4 14.20 2.60
Adjustment with deferred revenue from deferred foreign currency fluctuation 163.10 116.05
Total 5,920.82 5,172.34

42. Other expenses

Particulars Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
Power charges 238.60 223.95
Less: Recovered from contractors & employees 27.55 23.89
211.05 200.06
Water charges 553.45 515.12
Cost of captive coal 33.72 -
Contribution to water conservation fund - 303.72
Stores consumed 57.48 53.89
Rent 35.91 38.07
Less: Recoveries 11.50 10.50
24.41 27.57
Load dispatch centre charges 28.74 3.09
Repairs & maintenance
Buildings 244.14 237.28
Plant & machinery 1,826.68 1,656.02
Others 238.89 213.11
2,309.71 2,106.41
Particulars Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
Insurance 117.19 115.30
Interest to beneficiaries 101.72 49.91
Rates and taxes 46.84 36.85
Water cess & environment protection cess 25.93 29.98
Training & recruitment expenses 33.64 32.48
Less: Receipts 0.98 1.34
32.66 31.14
Communication expenses 59.03 59.17
Travelling expenses 200.76 208.86
Tender expenses 25.12 33.35
Less: Receipt from sale of tenders 1.83 2.03
23.29 31.32
Payment to auditors 5.36 4.36
Advertisement and publicity 18.88 17.32
Electricity duty 699.59 729.20
Security expenses 595.31 500.68
Entertainment expenses 26.95 24.81
Expenses for guest house 27.77 25.08
Less: Recoveries 2.74 2.78
25.03 22.30
Education expenses 42.97 39.51
Donation - 0.05
Ash utilisation & marketing expenses 21.78 27.44
Directors sitting fee 0.21 0.18
Professional charges and consultancy fee 112.75 37.89
Legal expenses 40.45 47.14
EDP hire and other charges 18.42 20.36
Printing and stationery 15.59 14.88
Oil & gas exploration expenses 110.58 32.77
Hiring of vehicles 87.14 80.39
Reimbursement of LC charges on sales realization 1.08 0.29
Net loss/(gain) in foreign currency transactions & translations (199.04) 34.09
Cost of hedging 5.27 6.26
Derivatives MTM loss/(gain) (net) 5.22 -
Horticulture expenses 39.79 33.94
Hire charges of helicopter/aircraft 17.02 14.93
Hire charges of construction equipments 9.42 9.58
Transport vehicle running expenses 7.01 6.76
Demurrage charges - 2.81
Loss on disposal/write-off of fixed assets 82.94 143.85
Miscellaneous expenses 99.96 223.95
5,715.66 5,848.13
Less: Allocated to fuel cost 421.65 388.60
Transferred to development of coal mines - Note 4 144.01 34.52
Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Transferred to hedging cost recoverable/(payable) from/to beneficiaries 5.22 -
Transferred to Corporate Social Responsibility (CSR) expense 42.17 33.36
Transferred to fly ash utilisation reserve fund 33.12 40.44
Transferred to expenditure during construction period (net) - Note 43 411.56 453.30
4,657.93 4,897.91
Corporate Social Responsibility (CSR) expense* 273.35 489.46
Provisions for
Tariff adjustments 98.88 145.28
Impairment in investments in joint venture 22.19 6.89
Obsolescence in stores 12.04 8.88
Unserviceable capital works 4.75 4.22
Unfinished minimum work programme for oil and gas exploration 2.89 6.71
Others 20.35 17.14
161.10 189.12
Total 5,092.38 5,576.49

a) During the development stage of mine, transfer price of coal extracted from Company's captive mine has been determined considering the notified price of Coal India Ltd. for equivalent grade of coal. The same has been netted from the cost of captive coal and carried to ‘Development of coal mines' (Note 4) through ‘Transferred to development of coal mines'.

b) Contribution to water conservation fund represents the amount paid/payable by the Company pursuant to the Resolution No. 11011 dated 18 May 2015 of Department of Water Resource, Government of Odisha. c) Details in respect of payment to auditors:

As auditor
Audit fee 1.68 1.17
Tax audit fee 0.59 0.41
Limited review 0.95 0.70
In other capacity
Other services (certification fee) 0.70 0.70
Reimbursement of expenses 0.85 0.95
Reimbursement of service tax 0.59 0.43
Total 5.36 4.36

Payment to the auditors includes Rs 0.67 crore (31 March 2016: Rs 0.50 crore) relating to earlier year.

d) CERC Regulations provides that where after the truing-up, the tariff recovered is more than the tariff approved by the Commission, the generating Company shall pay to the beneficiaries the over recovered amount along-with simple interest. Accordingly, the interest payable to the beneficiaries amounting to Rs 101.72 crore (31 March 2016: 49.91 crore) has been accounted and disclosed as ‘Interest to beneficiaries'.

e) Miscellaneous expenses include expenditure on books & periodicals, workshops, operating expenses of DG sets, brokerage & commission, bank charges, furnishing expenses etc. f) Provisions - Others include provision for doubtful loans, advances & claims, debts, arbitration cases and shortage in stores & property, plant and equipment.

g) * Refer Note 72.

43. Expenditure during construction period (net)

Rs Crore
Particulars
For the year ended 31.03.2017 For the year ended 31.03.2016
A. Employee benefits expense
Salaries and wages 582.22 522.17
Contribution to provident and other funds 131.61 71.53
Staff welfare expenses 48.00 48.76
Total (A) 761.83 642.46
B. Finance costs
Finance charges on financial liabilities measured at amortised cost
Bonds 1,335.26 1,066.58
Foreign currency term loans 191.67 151.95
Rupee term loans 1,634.14 1,768.97
Foreign currency bonds/notes 434.08 309.31
Unwinding of discount on vendor liabilities 405.73 278.07
Other borrowing costs
Management/arrangers fee - 5.81
Foreign currency bonds/notes expenses 0.57 0.04
Others 3.88 4.07
Total (B) 4,005.33 3,584.80
C. Depreciation and amortisation 148.38 90.73
D. Generation, administration & other expenses
Power charges 138.38 131.34
Less: Recovered from contractors & employees 3.33 2.92
135.05 128.42
Water charges 8.55 10.14
Rent 3.78 4.68
Repairs & maintenance
Buildings 6.44 10.96
Plant and machinery 0.75 0.74
Others 33.02 46.72
40.21 58.42
Insurance 0.72 1.33
Rates and taxes 13.16 12.91
Communication expenses 7.57 8.00
Travelling expenses 42.77 45.89
Tender expenses 3.88 5.79
Advertisement and publicity 1.94 2.29
Rs Crore
Particulars For the year ended 31.03.2017 For the year ended 31.03.2016
Security expenses 64.93 70.14
Entertainment expenses 5.42 5.70
Expenses for guest house 3.16 4.48
Professional charges and consultancy fee 6.87 4.66
Legal expenses 8.10 10.32
EDP hire and other charges 2.06 2.49
Printing and stationery 1.81 2.34
Miscellaneous expenses 61.58 75.30
Total (D) 411.56 453.30
E. Less: Other income
Interest from contractors 33.05 37.19
Interest others 14.83 15.58
Hire charges for equipment 2.67 1.31
Sale of scrap 2.57 0.73
Miscellaneous income 23.21 19.91
Total (E) 76.33 74.72
F. Net actuarial gain/loss - OCI 22.40 1.66
Grand total (A+B+C+D-E+F) 5,273.17 * 4,698.23 *

* Carried to Capital work-in-progress - (Note 4)

44. Amount in the financial statements are presented in Rs Crore (upto two decimals) except for per share data and as other-wise stated. Certain amounts, which do not appear due to rounding off, are disclosed separately. Previous years' figures have been regrouped/rearranged wherever considered necessary.

45. 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 sale of energy, 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 receipt of subsequent payment from such beneficiaries. In addition, reconciliation with beneficiaries and other customers is generally done on quarterly basis. So far as trade/other payables and loans and advances are concerned, the balance confirmation letters with the negative assertion as referred in the Standard on Auditing (SA) 505 (Revised) ‘External Confirmations', were sent to the parties. Some of such balances are subject to confirmation/ reconciliation. Adjustments, 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 and 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.

46. The levy of transit fee/entry tax on supplies of fuel to some of the power stations has been paid under protest as the matters are subjudice at various courts. In case the Company gets refund/demand from fuel suppliers/tax authorities on settlement of these cases, the same will be passed on to respective beneficiaries.

47. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's ongoing project was challenged before the National Green Tribunal (NGT). The NGT disposed the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgment of the NGT and for referring the matter to the Expert Appraisal Committee (“Committee”) for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon'ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. Aggregate cost incurred on the project upto 31 March 2017 is Rs 14,461.58 crore (31 March 2016: Rs 11,748.50 crore, 1 April 2015: Rs 8,728.42 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

48. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded.

A case was filed in Hon'ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon'ble Supreme Court of India on 7 May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon'ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31 March 2017 is Rs 160.75 crore (31 March 2016: Rs 157.19 crore, 1 April 2015: Rs 157.47 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

49. Disclosure as per Ind AS 2 ‘Inventories'

Amount of inventories recognised as expense during the year is as under:

Particulars Rs Crore
For the year ended 31.03.2017 For the year ended 31.03.2016
Fuel 47,572.19 43,798.59
Others (included in Note 42 - Other expenses) 1,080.69 1,059.75
Total 48,652.88 44,858.34

50. Disclosure as per Ind AS 21 ‘The Effects of Changes in Foreign Exchange Rates'

The amount of exchange differences (net) debited to the Statement of Profit & Loss is (-) Rs 5.66 crore (31 March 2016: debit of 22.55 crore).

51. Disclosure as per Ind AS 23 ‘Borrowing Costs'

Borrowing costs capitalised during the year is Rs 4,125.08 crore (31 March 2016: Rs 3,697.96 crore).

52. Disclosure as per Ind AS 38 ‘Intangible Assets'

Research expenditure charged to revenue during the year is Rs 80.40 crore (31 March 2016: Rs 108.00 crore).

53. Disclosure as per Ind AS 11 - ‘Construction contracts'

The net balance sheet position for ongoing construction contracts is as follows:

Rs Crore
Particulars For the year ended
31 March 2017 31 March 2016
Contract revenue recognised during the year 117.42 79.13
Aggregate amount of contract costs incurred and recognised profits (less recognised losses, if any) upto the Balance Sheet date for all contracts in progress as at that date 768.35 472.60
Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Amount of customers' advances outstanding for contracts in progress as at Balance Sheet date 637.58 468.78 306.64
Retention amounts by customer for contract work in progress as at the end of the financial year 1.21 1.50 -
Gross amount due from customer for contract work- presented as an assets 56.28 40.60 42.13
Gross amount due to customer for contract work - presented as liability 23.56 31.73 43.76

54. Disclosure as per Ind AS 12 ‘Income taxes'

(a) Income tax expense

i) Income tax recognised in Statement of Profit and Loss

Rs Crore
Particulars 31 March 2017 31 March 2016
Current tax expense
Current year 2,705.75 2,103.92
Adjustment for earlier years (107.56) (2,453.48)
Pertaining to regulatory deferral account balances 71.82 2.58
Total current tax expense 2,670.01 (346.98)
Deferred tax expense
Origination and reversal of temporary differences 1,287.31 226.88
Less: Deferred asset for deferred tax liability 954.68 53.73
Total deferred tax expense 332.63 173.15
Total income tax expense 3,002.64 (173.83)

ii) Income tax recognised in other comprehensive income

Rs Crore
Particulars 31 March 2017 31 March 2016
Before tax Tax expense/ (benefit) Net of tax Before tax Tax expense/ (benefit) Net of tax
- Net actuarial gains/ (losses) on defined benefit plans (303.42) (64.76) (238.66) (48.76) (10.41) (38.35)
- Net gains/(losses) on fair value of equity instruments 35.28 - 35.28 (20.28) - (20.28)
(268.14) (64.76) (203.38) (69.04) (10.41) (58.63)

iii) Reconciliation of tax expense and the accounting profit multiplied by India's domestic tax rate

Rs Crore
Particulars 31 March 2017 31 March 2016
Profit before tax 12,387.90 10,595.77
Tax using the Company's domestic tax rate of 34.6081% (31 March 2016 - 34.6081%) 4,287.20 3,666.99
Tax effect of:
Non-deductible tax expenses 169.55 (91.30)
Tax-exempt income (35.88) (63.95)
Foreign exchange differences 0.13 0.44
Previous year tax liability (107.56) (2,453.48)
Minimum alternate tax adjustments (1,310.80) (1,232.53)
Total tax expense in the Statement of Profit and Loss 3,002.64 (173.83)

(b) Tax losses carried forward

Rs Crore
Particulars 31 March 2017 Expiry date 31 March 2016 Expiry date
Unused tax losses for which no deferred tax asset has been recognised - - 39.01 31.03.2017

Deferred tax assets have not been recognised in respect of the tax losses incurred by the Company that is not likely to generate taxable income in the foreseeable future.

(c) Dividend distribution tax on proposed dividend not recognised at the end of the reporting period

Since year end, the directors have recommended the payment of final dividend amounting to Rs 1,789.27 crore (31 March 2016: Rs 1,442.96 crore). The dividend distribution tax on this proposed dividend amounting to Rs 364.25 crore (31 March 2016: Rs 289.68 crore) has not been recognised since this proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

(d) MAT Credit available to the Company in future but not recognised in the books:

Rs Crore
Financial years 31 March 2017 Expiry date 31 March 2016 Expiry date
For the year 2016-17 1,864.23 31.03.2027 - -
For the year 2015-16 1,708.82 31.03.2026 1,708.82 31.03.2026
For the year 2014-15 883.58 31.03.2025 883.58 31.03.2025

55. Disclosure as per Ind AS 17 ‘Leases'

A) Operating leases

i. Leases as lessee

a) The Company's significant leasing arrangements are in respect of operating leases of premises for residential use of employees, offices and guest houses/transit camps for a period of one to two years. These leasing arrangements are usually renewable on mutually agreed terms but are not non-cancellable. An amount of 29.69 crore (31 March 2016: Rs 35.10 crore) towards lease payments (net of recoveries) in respect of premises for residential use of employees is included under ‘Salaries and wages' in Note 39. Lease payments in respect of premises for offices and guest house/transit camps amounting Rs 24.41 crore (net of recoveries) (31 March 2016: Rs 27.57 crore) are included under ‘Rent' in Note 42.

b) The Company has taken a helicopter on wet lease basis for a period of eleven years and the amount of lease charges of Rs 17.02 crore (31 March 2016: Rs 14.93 crore) is included under ‘Hire charges of helicopter/aircraft' in Note 42. The lease is renewable on mutually agreed terms but not non-cancellable.

c) Ministry of Power, Government of India vide its notification no. 2/38/99-BTPS (Volume VII) dated 22 September 2006 transferred land of a power station to the Company on operating lease of 50 years. Lease rent for the year amounting to Rs 6.26 crore (31 March 2016: Rs 6.25 crore) has been charged to the Statement of Profit and Loss and included under ‘Rates and taxes' in Note 42.

ii. Leases as lessor

The Company has classified the arrangement with its customer for two power stations (one thermal and one gas) as lease based on the principles enunciated in Appendix C of Ind AS 17 and accounted for as operating lease in accordance with those principles. The future minimum lease payments (MLPs) under non-cancellable leases in respect of the same are as follows: (i) Thermal Power Station PPA signed with the beneficiary was operative for a period of five years from the date of take over of the plant and the agreement may be mutually extended, renewed or replaced by another agreement on such terms and conditions for such further period as the parties may mutually agree.

(ii) Gas Power Station

PPA signed with the beneficiary on 6 January 1995 was operative for five years from the date of commercial operation of last unit of the station and may be mutually extended, renewed or replaced by another agreement on such terms and on such further period of time as the parties may mutually agree. As per the supplementary agreement dated 15 February 2013 the validity period is extended for a further period of 12 years from 1 March 2013.

Rs Crore
31 March 2017 31 March 2016 1 April 2015
Less than one year 229.91 222.82 117.32
Between one and five years 667.67 782.57 381.17
More than five years 263.27 355.32 461.53
1,160.85 1,360.71 960.02

B) Finance leases

i) Leases as lessee

a) The Company has taken on lease certain vehicles as per terms of the lease agreements, details of which are as under:

Rs Crore
31 March 2017 31 March 2016 1 April 2015
MLPs Present value of MLP MLPs Present value of MLP MLPs Present value of MLP
Less than one year 1.05 0.78 0.71 0.48 - -
Between one and five years 1.83 1.62 1.71 1.46 - -
More than five years - - - - - -
Total minimum lease payments 2.88 2.40 2.42 1.94 - -
Less amounts representing finance charges 0.48 - 0.48 - - -
Present value of minimum lease payments 2.40 2.40 1.94 1.94 - -

b) The Company has entered into a lease agreement for coal movement through inland waterways transport. As per the agreement, the operator shall design, build, operate and maintain the unloading infrastructure and material handling system (“facility”), and transfer the same to the Company after expiry of 7 years at Rs 1/-. The facility has been completed and is under operation. Fair value of the entire facility is Rs 90.00 crore (31 March 2016: Rs 90.00 crore). The total contingent rents recognised as expense during the year is Rs 0.82 crore (31 March 2016: Rs 9.52 crore).

Rs Crore
31 March 2017 31 March 2016 1 April 2015
MLPs Present value of MLP MLPs Present value of MLP MLPs Present value of MLP
Less than one year 18.89 12.12 20.60 10.83 15.45 7.83
Between one and five years 82.41 64.79 82.41 57.88 82.41 52.31
More than five years 5.15 3.39 24.04 22.42 46.36 39.51
Total minimum lease payments 106.45 80.30 127.05 91.13 144.22 99.65
Less amounts representing finance charges 26.15 - 35.92 - 44.57 -
Present value of minimum lease payments 80.30 80.30 91.13 91.13 99.65 99.65

c) The Comapny acquires land on leasehold basis for a period generally ranging from 25 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 capitalised at the present value of the total minimum lease payments to be paid over the lease term. Future lease rentals are recognised as ‘Finance lease obligation' at their present values. The leasehold land is amortised considering the significant accounting policies of the Company.

Rs Crore
31 March 2017 31 March 2016 1 April 2015
MLPs Present value of MLP MLPs Present value of MLP MLPs Present value of MLP
Less than one year 5.66 5.19 4.72 4.32 3.46 3.15
Between one and five years 21.42 15.69 18.01 13.14 13.84 10.04
More than five years 425.06 40.06 383.72 29.85 292.37 22.15
Total minimum lease payments 452.14 60.94 406.45 47.31 309.67 35.34
Less amounts representing finance charges 391.20 - 359.14 - 274.33 -
Present value of minimum lease payments 60.94 60.94 47.31 47.31 35.34 35.34

ii) Leases as lessor

The Company has classified the arrangement with its customer for Stage I of a power station in the nature of lease based on the principles enunciated in Appendix C of Ind AS 17, ‘Leases' and accounted for as finance lease in accordance with those principles. The PPA with the beneficiary is for a period of twenty five years from the date of transfer and the agreement may be mutually extended, renewed or replaced by another agreement on such terms and for such further period of time as the parties may mutually agree.

Rs Crore
31 March 2017 31 March 2016 1 April 2015
MLPs Present value of MLP MLPs Present value of MLP MLPs Present value of MLP
Less than one year 119.42 29.77 99.67 29.12 94.73 24.72
Between one and five 477.70 182.65 388.61 151.24 369.35 126.77
years
More than five years 456.72 342.64 489.96 360.46 560.79 388.43
Total minimum lease 1,053.84 555.06 978.24 540.82 1,024.87 539.92
payments
Less amounts representing 498.78 - 437.42 - 484.95 -
unearned finance income
Present value of minimum 555.06 555.06 540.82 540.82 539.92 539.92
lease payments

56. Disclosure as per Ind AS 19 ‘Employee benefits'

(i) Defined contribution plans: Pension

The defined contribution pension scheme of the Company for its employees which is effective from 1 January 2007, is administered through a separate trust. The obligation of the Company is to contribute to the trust to the extent of amount not exceeding 30% of basic pay and dearness allowance less employer's contribution towards provident fund, gratuity, post retirement medical facility (PRMF) or any other retirement benefits. An amount of Rs 237.34 crore (31 March 2016: Rs 223.24 crore) for the year is recognized as expense on this account and charged to the Statement of Profit and Loss.

(ii) Defined benefit plans: A. Provident fund

The Company pays fixed contribution to provident fund at predetermined rates to a separate trust, which invests the funds in permitted securities. The Company has an obligation to ensure minimum rate of return to the members as specified by GOI. Accordingly, the Company has obtained report of the actuary, based on which overall interest earnings and cumulative surplus is more than the statutory interest payment requirement for all the periods presented. Further, contribution to employees pension scheme is paid to the appropriate authorities.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the provident fund plan as at balance sheet date:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Net defined benefit (asset)/liability (53.17) (59.48) (54.26)
Non-current - - -
Current (53.17) (59.48) (54.26)

Movement in net defined benefit (asset)/liability

Rs Crore
Particulars Defined benefit obligation Fair value of plan assets Net defined benefit (asset)/liability
31 March 31 March 31 March 31 March 31 March 31 March
2017 2016 2017 2016 2017 2016
Opening balance 6,832.89 6,143.59 6,892.37 6,197.85 (59.48) (54.26)
Current service cost recognised in statement of profit & loss 252.12 242.04 - - 252.12 242.04
Interest cost/(income) 546.63 491.49 (551.39) (495.83) (4.76) (4.34)
Total 798.75 733.53 (551.39) (495.83) 247.36 237.70
Remeasurement loss (gain):
Actuarial loss (gain) arising from:
Financial assumptions 0.62 - - - 0.62 -
Experience adjustment 71.22 69.00 - - 71.22 69.00
Return on plan assets excluding interest income - - (60.77) (69.88) (60.77) (69.88)
Total 71.84 69.00 (60.77) (69.88) 11.07 (0.88)
Other
Contribution by participants 485.54 474.81 485.54 474.81 - -
Contribution by employer - - 252.12 242.04 (252.12) (242.04)
Benefits paid 653.39 588.04 653.39 588.04 - -
Closing balance 7,535.63 6,832.89 7,588.80 6,892.37 (53.17) (59.48)

Pursuant to paragraph 57 of Ind AS 19, accounting by an entity for defined benefit plans, inter-alia, involves determining the amount of the net defined benefit liability (asset) which shall be adjusted for any effect of limiting a net defined benefit asset to the asset ceiling prescribed in paragraph 64. As per Para 64 of Ind AS 19. In case of surplus in a defined benefit plan, an entity shall measure the net defined benefit asset at the lower of actual surplus or the value of the assets ceiling determined using the discount rate. The asset ceiling is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. Further, Paragraph 65 provides that a net defined benefit asset may arise where a defined benefit plan has been overfunded or where actuarial gains have arisen.

As per the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, the Company has no right to the benefits either in the form of refund from the plan or lower future contribution to the plan towards the net surplus of Rs 53.17 crore determined through actuarial valuation. Accordingly, Company has not recognised the surplus as an asset, and the actuarial gains in Other Comprehensive Income, as these pertain to the Provident Fund Trust and not to the company.

B. Gratuity & pension

a) The Company has a defined benefit gratuity plan. Every employee who has rendered continuous service of five years or more is entitled to gratuity at 15 days salary (15/26 X last drawn basic salary plus dearness allowance) for each completed year of service subject to a maximum of Rs 0.10 crore on superannuation, resignation, termination, disablement or on death. The maximum ceiling of Rs 0.10 crore has been recommended for enhancement to Rs 0.20 crore by the Report of the 3rd Pay Revision Committee appointed by the GOI. The Company has carried out acturial valuation of gratuity benefit considering the enhanced ceiling.

b) The Company has pension schemes at two of its stations in respect of employees taken over from erstwhile state government power utilities The existing schemes stated at (a) and at one of the power stations at (b) above are funded by the Company and are managed by separate trusts. Pension scheme of another power station in respect of employees taken from erstwhile State Government Power Utility is unfunded. The liability for gratuity and the pension schemes as above is recognised on the basis of actuarial valuation.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity and pension plan and the amounts recognised in the Company's financial statements as at balance sheet date:

Rs Crore
31 March 2017 31 March 2016 1 April 2015
Net defined benefit (asset)/liability :
Gratuity (funded) 627.71 (19.27) (16.09)
Pension (funded) 125.13 118.93 108.28
Pension (non-funded) 271.71 258.18 242.04
1,024.55 357.84 334.23
Non-current 19.83 17.93 16.47
Current 1,004.72 339.91 317.76

Movement in net defined benefit (asset)/liability Rs Crore

Particulars Defined benefit obligation Fair value of plan assets Net defined benefit (asset) liability
31 March 31 March 31 March 31 March 31 March 31 March
2017 2016 2017 2016 2017 2016
Opening balance 1,823.53 1,783.65 1,465.69 1,449.42 357.84 334.23
Included in profit or loss:
Current service cost 96.29 72.07 - - 96.29 72.07
Past service cost 433.24 - - - 433.24 -
Interest cost (income) 145.88 142.69 (117.26) (115.96) 28.62 26.73
Total amount recognised in profit or loss 675.41 214.76 (117.26) (115.96) 558.15 98.80
Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arising from:
Financial assumptions 85.23 - - - 85.23 -
Experience adjustment 57.14 (40.58) - - 57.14 (40.58)
Return on plan assets excluding interest income - - (10.10) (11.79) (10.10) (11.79)
Total amount recognised in other comprehensive income 142.37 (40.58) (10.10) (11.79) 132.27 (52.37)
Other
Benefits paid 135.41 134.30 111.70 111.48 23.71 22.82
Closing balance 2,505.90 1,823.53 1,481.35 1,465.69 1,024.55 357.84

C. Post-Retirement Medical Facility (PRMF)

The Company has Post-Retirement Medical Facility (PRMF), under which the retired employees and their spouses 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. The liability for the same is recognised annually on the basis of actuarial valuation. A trust has been constituted during 2015-16 for its employees superannuated on or after 1

January 2007, for the sole purpose of providing post retirement medical facility to them.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the PRMF and the amounts recognised in the Company's financial statements as at balance sheet date:

Rs Crore
31 March 2017 31 March 2016 1 April 2015
Net defined benefit (asset)/liability 97.44 (0.22) 727.49
Non-current - - -
Current 97.44 (0.22) 727.49

Movement in net defined benefit (asset)/liability Rs Crore

Particulars Defined benefit obligation Fair value of plan assets Net defined benefit (asset) liability
31 March 31 March 31 March 31 March 31 March 31 March
2017 2016 2017 2016 2017 2016
Opening balance 889.78 727.49 890.00 - (0.22) 727.49
Included in profit or loss:
Current service cost 29.41 21.93 - - 29.41 21.93
Past service cost - - - - - -
Interest cost (income) 71.18 58.20 (71.20) - (0.02) 58.20
Total amount recognised in profit or loss 100.59 80.13 (71.20) - 29.39 80.13
Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arising from:
Demographic assumptions - - - - - -
Financial assumptions 86.06 - - - 86.06 -
Experience adjustment 119.03 110.00 - - 119.03 110.00
Return on plan assets excluding interest income - - (9.18) - (9.18) -
Total amount recognised in other comprehensive income 205.09 110.00 (9.18) - 195.91 110.00
Other
Contribution by participants - - 5.81 - (5.81) -
Contribution by employer - - 121.83 890.00 (121.83) (890.00)
Benefits paid 36.06 27.84 36.06 - - 27.84
Closing balance 1,159.40 889.78 1,061.96 890.00 97.44 (0.22)

D. Other retirement benefit plans

Other retirement benefit plans include baggage allowance for settlement at home town for employees & dependents and farewell gift to the superannuating employees. The scheme above is unfunded and liability for the same is recognised on the basis of actuarial valuation.

Rs Crore
31 March 2017 31 March 2016 1 April 2015
Net defined benefit (asset)/liability : 138.18 126.49 120.97
Non-current 125.11 113.79 109.71
Current 13.07 12.70 11.26

Movement in net defined benefit (asset)/liability

Rs Crore
Defined benefit obligation
31 March 2017 31 March 2016
Opening balance 126.49 120.97
Included in profit or loss:
Current service cost 6.36 5.58
Past service cost - -
Interest cost (income) 10.11 9.68
Total amount recognised in profit or loss 16.47 15.26
Included in OCI:
Remeasurement loss (gain):
Actuarial loss (gain) arising from:
Financial assumptions 4.25 -
Experience adjustment (6.59) (7.07)
Return on plan assets excluding interest income - -
Total amount recognised in other comprehensive income (2.34) (7.07)
Other
Contributions paid by the employer - -
Benefits paid 2.44 2.67
Closing balance 138.18 126.49

E. Plan assets

Plan assets comprise the following Rs Crore

31 March 2017 31 March 2016 1 April 2015
Quoted Unquoted Total Quoted Unquoted Total Quoted Unquoted Total
State government securities 2,144.63 - 2,144.63 1,666.50 - 1,666.50 1,284.23 - 1,284.23
Central government securities 1,884.84 - 1,884.84 1,906.60 - 1,906.60 1,931.19 - 1,931.19
Corporate bonds/ debentures 3,281.34 94.95 3,376.29 3,135.36 94.95 3,230.31 3,124.53 94.95 3,219.48
Money market instruments/liquid mutual fund - 39.33 39.33 - 17.72 17.72 2.50 - 2.50
Equity & equity linked investments 115.32 - 115.32 47.52 - 47.52 - - -
Investments with insurance companies - 2,382.65 2,382.65 - 1,306.32 1,306.32 - 1,051.92 1,051.92
Total (excluding accrued interest) 7,426.13 2,516.93 9,943.06 6,755.98 1,418.99 8,174.97 6,342.45 1,146.87 7,489.32

Plan assets of Rs 890.00 crore towards the post retirement medical benefit trust has been invested after 31 March 2016.

No amount is included in the value of plan assets in respect of the reporting enterprise's own financial instruments for the year ended 31 March 2017 & 31 March 2016.

Actual return on plan assets is Rs 819.90 crore (31 March 2016: Rs 693.45 crore).

F. Defined benefit obligations i. Actuarial assumptions

The following were the principal actuarial assumptions at the reporting date:

31 March 2017 31 March 2016 1 April 2015
Discount rate 7.50% 8.00% 8.00%
Expected return on plan assets
Gratuity 7.50% 8.00% 8.00%
Pension 7.50% 8.00% 7.50%
PRMF - - -
Annual increase in costs 6.00% 6.00% 6.00%
Salary escalation rate 6.00% 6.00% 6.00%

The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Further, the expected return on plan assets is determined considering several applicable factors mainly the composition of plan assets held, assessed risk of asset management and historical returns from plan assets.

ii. Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

31 March 2017 31 March 2016
Increase Decrease Increase Decrease
Discount rate (0.5% movement) (167.12) 176.25 (130.80) 137.92
Annual increase in costs (0.5% movement) 86.49 (84.46) 67.04 (66.11)
Salary escalation rate (0.5% movement) 90.96 (84.38) 71.26 (66.06)

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown. The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. This analysis may not be representative of the actual change in the defined benefit obligations as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

G. Risk exposure

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below:

a) Asset volatility

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments are in fixed income securities with high grades and in government securities. These are subject to interest rate risk and the fund manages interest rate risk with derivatives to minimise risk to an acceptable level. A portion of the funds are invested in equity securities and in alternative investments which have low correlation with equity securities.

The equity securities are expected to earn a return in excess of the discount rate and contribute to the plan deficit. The Company has a risk management strategy where the aggregate amount of risk exposure on a portfolio level is maintained at a fixed range. Any deviations from the range are corrected by rebalancing the portfolio. The Company intends to maintain the above investment mix in the continuing years.

b) Changes in discount rate

A decrease in discount rate will increase plan liabilities, although this will be partially offset by an increase in the value of the plans' bond holdings.

c) Inflation risks

In the pension plans, the pensions in payment are not linked to inflation, so this is a less material risk.

d) Life expectancy

The pension plan obligations are to provide benefits for the life of the member, so increases in life expectancy will result in an increase in the plans' liabilities. This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans. Within this framework, the Company's ALM objective is to match assets to the pension obligations by investing in long-term fixed interest securities with maturities that match the benefit payments as they fall due and in the appropriate currency.

The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations. The Company has not changed the processes used to manage its risks from previous periods. The Company uses derivatives to manage some of its risk. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets in 2017 consists of government and corporate bonds. The plan asset mix is in compliance with the requirements of the respective local regulations.

H. Expected maturity analysis of the defined benefit plans in future years

Rs Crore
Less than 1 year Between 1-2 years Between 2-5 years Over 5 years Total
31 March 2017
Gratuity & pension 248.81 304.77 713.17 1,239.15 2,505.90
Post-retirement medical facility (PRMF) 36.23 40.89 151.37 930.91 1,159.40
Provident fund 683.19 2,516.99 2,299.17 2,036.28 7,535.63
Other post-employment benefit plans 13.07 10.48 38.64 75.99 138.18
Total 981.30 2,873.13 3,202.35 4,282.33 11,339.11
31 March 2016
Gratuity & Pension 154.99 148.43 456.44 1,063.67 1,823.53
Post-retirement medical facility (PRMF) 30.62 31.38 116.16 711.62 889.78
Provident fund 530.71 2,184.85 2,021.13 2,096.20 6,832.89
Other post-employment benefit plans 12.70 12.73 34.06 67.00 126.49
Total 729.02 2,377.39 2,627.79 3,938.49 9,672.69
1 April 2015
Gratuity & Pension 143.41 140.27 425.33 1,074.64 1,783.65
Post-retirement medical facility (PRMF) 26.12 25.66 94.98 580.73 727.49
Provident fund 439.88 1,792.89 1,629.08 2,281.74 6,143.59
Other post-employment benefit plans 11.25 11.69 35.81 62.22 120.97
Total 620.66 1,970.51 2,185.20 3,999.33 8,775.70

Expected contributions to post-employment benefit plans for the year ending 31 March 2018 are Rs 500.70 crore. The weighted average duration of the defined benefit plan obligation at the end of the reporting period is15.08 years (31 March 2016: 15.26 years, 1 April 2015: 15.37 years).

(iii) Other long term employee benefit plans

A. Leave

The Company provides for earned leave benefit (including compensated absences) and half-pay leave to the employees of the Company which accrue annually at 30 days and 20 days respectively. Earned leave (EL) is en-cashable while in service. Half-pay leaves (HPL) are en-cashable only on separation beyond the age of 50 years up to the maximum of 300 days. However, total number of leave (i.e. EL & HPL combined) that can be encashed on superannuation shall be restricted to 300 days and no commutation of half-pay leave shall be permissible. The scheme is unfunded and liability for the same is recognised on the basis of actuarial valuation. A provision of Rs 260.32 crore (31 March 2016: Rs 76.50 crore) for the year have been made on the basis of actuarial valuation at the year end and debited to the Statement of Profit and Loss.

B. Other employee benefits

Provision for long service award and family economic rehabilitation scheme amounting to Rs 7.73 crore (31 March 2016: Rs 5.05 crore) for the year have been made on the basis of actuarial valuation at the year end and debited to the Statement of Profit and Loss.

57. Disclosure as per Ind AS 24 ‘Related Party Disclosures'

a) List of Related parties: i) Subsidiaries:

1. Bhartiya Rail Bijlee Company Ltd.

2. Kanti Bijlee Utpadan Nigam Ltd.

3. NTPC Vidyut Vyapar Nigam Ltd.

4. NTPC Electric Supply Company Ltd.

5. Patratu Vidyut Utpadan Nigam Ltd.

ii) Joint ventures:

1. Utility Powertech Ltd.

2. NTPC-GE Power Services Private Ltd. (Previously NTPC-Alstom Power Services Private Ltd.)

3. NTPC-SAIL Power Company Ltd. (Previously NTPC-SAIL Power Company Private Ltd.)

4. NTPC-Tamil Nadu Energy Company Ltd.

5. Ratnagiri Gas & Power Private Ltd.

6. Aravali Power Company Private Ltd.

7. NTPC BHEL Power Projects Private Ltd.

8. Meja Urja Nigam Private Ltd.

9. BF-NTPC Energy Systems Ltd.

10. Nabinagar Power Generating Company Private Ltd.

11. Transformers and Electricals Kerala Ltd.

12. National High Power Test Laboratory Private Ltd.

13. Energy Efficiency Services Ltd.

14. CIL NTPC Urja Private Ltd.

15. Anushakti Vidhyut Nigam Ltd.

16. Hindustan Urvarak & Rasayan Ltd.

17. Trincomalee Power Company Ltd.

18. Bangladesh-India Friendship Power Company Pvt.Ltd.

iii) Key Managerial Personnel (KMP):

Shri Gurdeep Singh Chairman and Managing Director
Shri A.K.Jha Director (Technical)
Shri S.C.Pandey Director (Projects)
Shri K.Biswal Director (Finance)
Shri K.K.Sharma Director (Operations)
Shri Saptarishi Roy1 Director (Human Resources)
Shri A.K.Gupta2 Director (Commercial)
Shri U.P.Pani3 Director (Human Resources)
Dr.Pradeep Kumar Non-executive Director
Shri Aniruddha Kumar Non-executive Director
Dr.Gauri Trivedi Non-executive Director
Shri Rajesh Jain Non-executive Director
Shri Seethapathy Chander4 Non-executive Director
Shri Prashant Mehta5 Non-executive Director
Shri K.P.Gupta6 Company Secretary
Shri A.K.Rastogi7 Company Secretary

1. W.e.f. 1 November 2016, 2. W.e.f. 3 February 2017, 3. Upto 31 October 2016, 4. W.e.f. 22 June 2016, 5. Upto 29 July 2016, 6. W.e.f. 22 March 2017 and 7. Upto 28 February 2017

iv) Post Employment Benefit Plans:

1. NTPC Limited Employees Provident Fund

2. NTPC Employees Gratuity Fund

3. NTPC Post Retirement Employees Medical Benefit Fund

4. NTPC Limited Defined Contribution Pension Trust

v) Entities under the control of the same government:

The Company is a Central Public Sector Undertaking (CPSU) controlled by Central Government by holding majority of shares (refer Note 21). 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. Such entities with which the Company has significant transactions include but not limited to Coal India Limited, Singareni Coalfields Ltd., GAIL (India)

Ltd., BHEL Ltd., SAIL Ltd., Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd.

vi) Others:

1. NTPC Education and Research Society

2. NTPC Foundation

b) Transactions with the related parties are as follows:

Rs Crore
Subsidiaries and Joint Venture Companies Subsidiaries Joint Venture Companies
Particulars 2016-17 2015-16 2016-17 2015-16
i) Sales/purchase of goods and services during the year
- Contracts for works/services for services received by the Company - - 1,091.97 1,190.93
- Contracts for works/services for services provided by the Company 150.87 2.64 52.68 36.45
- Sale/purchase of goods 2,073.67 1,812.91 10.55 0.26
ii) Deputation of employees 30.21 16.41 72.09 70.64
iii) Dividend received 20.00 - 143.09 131.76
iv) Equity contributions made 507.66 87.73 1,201.63 714.61
v) Loans granted 154.25 - - -
vi) Guarantees received - - 28.16 27.75

Note:- Refer Note 71 for other commitments with Subsidiaries and Joint Venture Companies

Rs Crore
2016-17 2015-16
Transactions with post employment benefit plans
- Contributions made during the year 827.76 628.12
Compensation to Key management personnel
- Short term employee benefits 3.89 3.18
- Post employment benefits 0.49 0.47
- Other long term benefits 0.35 0.47
- Termination benefits - -
- Sitting fee 0.19 0.14
Total Compensation to Key management personnel 4.92 4.26

Rs Crore Transactions with the related parties under the control of the same government

Sl. No. Name of the Company Nature of transaction 2016-17 2015-16
1 Bharat Coking Coal Ltd. Purchase of coal 739.67 472.16
2 Central Coalfields Ltd 2,642.61 2,355.76
3 Eastern Coalfields Ltd 7,839.67 6,716.15
4 Mahanadi Coalfields Ltd 3,780.12 2,856.86
5 Northern Coalfields Ltd. 8,134.83 7,611.72
6 South Eastern Coalfields Ltd 5,638.30 4,481.23
7 Western Coalfields Ltd. 273.39 77.47
8 Singareni Coalfields Ltd 4,404.41 3,351.76
9 Bharat Heavy Electricals Ltd. Purchase of equipments & erection services 4,661.92 4,660.38
Purchase of spares 579.37 568.57
Maintenance services 1,075.29 739.84

Transactions with the related parties under the control of the same government

Sl. No. Name of the Company Nature of transaction 2016-17 2015-16
10 GAIL (I) Ltd. Supply of natural gas 1,173.64 1,310.07
11 Indian Oil Corporation Ltd. Supply of oil products 465.95 521.33
12 Bharat Petroleum Corporation Ltd. Supply of natural gas and oil products 96.26 139.61
13 Steel Authority of India Ltd. Supply of steel and iron products 409.30 641.94
14 Rural Electrification Corporation Ltd. Consultancy assignments 510.96 234.04
15 Other entities Purchase of equipments & erection services 105.38 46.98
Purchase of spares 15.26 13.03
Maintenance services 714.58 584.04
Rs Crore
Transactions with others listed at (a)(vi) above 2016-17 2015-16
Transactions during the year
- Contracts for works/services for services received by the Company 2.94 5.67

c) Outstanding balances with related parties are as follows:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Amount recoverable towards loans
- From Subsidiaries 154.25 1.71 3.43
- From Key Managerial personnel 0.12 0.10 0.15
- From Others 0.60 0.60 0.60
Amount recoverable other than loans
- From Subsidiaries 398.54 438.56 447.18
- From Joint Ventures 43.54 70.84 60.20
- From post employment benefit plans 22.40 39.31 33.45
Amount payable
- To Joint Ventures 308.30 250.96 184.68
- To post employment benefit plans 154.94 67.23 63.73

d) Individually significant transactions

Rs Crore
Amount
Particulars Nature of relationship 2016-17 2015-16
Contracts for works/services for services received by
the Company
Utility Powertech Ltd. Joint Venture 659.64 592.18
NTPC BHEL Power Projects Private Ltd. Joint Venture 387.34 542.42
NTPC-GE Power Services Private Ltd. (Previously NTPC- Alstom Power Services Private Ltd.) Joint Venture 42.21 55.10
Rs Crore
Particulars Nature of relationship Amount
2016-17 2015-16
Contracts for works/services for services provided by the Company
Patratu Vidyut Utpadan Nigam Ltd. Subsidiary 41.37 -
Nabinagar Power Generating Company Private Ltd. Joint Venture 27.99 12.78
Dividend received
NTPC-SAIL Power Company Ltd. (Previously NTPC-SAIL Power Company Private Ltd.) Joint Venture 70.00 60.00
Aravali Power Company Private Ltd. Joint Venture 66.60 63.48
NTPC Vidyut Vyapar Nigam Ltd. Subsidiary 20.00 -
Energy Efficiency Services Ltd. Joint Venture 3.39 0.68
Utility Powertech Ltd. Joint Venture 2.50 7.00
NTPC-GE Power Services Private Ltd. (Previously NTPC- Alstom Power Services Private Ltd.) Joint Venture 0.60 0.60
Equity contributions made
Bhartiya Rail Bijlee Company Ltd. Subsidiary 232.29 15.64
Kanti Bijlee Utpadan Nigam Ltd. Subsidiary 241.87 71.02
Patratu Vidyut Utpadan Nigam Ltd. Subsidiary 33.50 1.08
Nabinagar Power Generating Company Private Ltd. Joint Venture 590.00 252.17
Meja Urja Nigam Private Ltd. Joint Venture 325.00 300.09
Energy Efficiency Services Ltd. Joint Venture 99.00 25.00
Aravali Power Company Private Ltd. Joint Venture 66.51 53.15
Bangladesh-India Friendship Power Company Pvt.Ltd. Joint Venture 64.52 38.25
NTPC-Tamil Nadu Energy Company Ltd. Joint Venture 44.39 40.00
National High Power Test Laboratory Private Ltd. Joint Venture 6.50 -
Hindustan Urvarak & Rasayan Ltd. Joint Venture 5.03 -
BF-NTPC Energy Systems Ltd. Joint Venture 0.69 -
Trincomalee Power Company Ltd. Joint Venture - 5.94
Loans granted
Kanti Bijlee Utpadan Nigam Ltd. Subsidiary 121.00 -
Patratu Vidyut Utpadan Nigam Ltd. Subsidiary 33.25 -
Guarantees received
Utility Powertech Ltd. Joint Venture 12.05 12.67
NTPC-GE Power Services Private Ltd. (Previously NTPC- Alstom Power Services Private Ltd.) Joint Venture 16.11 15.09

e) Terms and conditions of transactions with the related parties

i) Transactions with the related parties are made on normal commercial terms and conditions and at market rates.

ii) The Company is assigning jobs on contract basis, for sundry works in plants/stations/offices to M/s Utility Powertech Ltd (UPL), a 50:50 joint venture between the Company and Reliance Infrastructure Ltd. UPL inter-alia undertakes jobs such as overhauling, repair, refurbishment of various mechanical and electrical equipments of power stations. The Company has entered into Power Station Maintenance Agreement with UPL from time to time. The rates are fixed on cost plus basis after mutual discussion and after taking into account the prevailing market conditions.

iii) The Company is seconding its personnel to Subsidiaries and Joint Venture Companies as per the terms and conditions agreed between the companies, which are similar to those applicable for secondment of employees to other companies and institutions. The cost incurred by the Company towards superannuation and employee benefits are recovered from these companies.

iv) The loan given to Kanti Bijlee Utpadan Nigam Ltd., a subsidiary of the Company, is at SBAR (State Bank Advance Rate) adjusted to half yearly rest presently 14.41 % repayable in 14 half-yearly installments starting from 3 April 2010 and last installment repaid on 31 March 2017. The loan of Rs 33.25 crore given to PVUNL, a subsidiary of the Company, is at 10 % p.a. (quarterly rest) repayable in two installments on 30 September 2017 and 30 September 2018. Another loan to Kanti Bijlee Utpadan Nigam Ltd. has been given during the year amounting to Rs 121.00 crore at 10 % p.a. (quarterly rest) repayable in two installments on 30 June 2019 and 31 December 2019. v) Consultancy services provided by the Company to Subsidiaries and Joint Ventures are generally on nomination basis at the terms, conditions and principles applicable for consultancy services provided to other parties.

vi) Outstanding balances of subsidiaries and joint ventures at the year-end are unsecured and settlement occurs through banking transaction. These balances other than loans are interest free. For the year ended 31 March 2017 and 31 March 2016, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

vii) Refer Note 60 in respect of impairment loss on investment in Ratnagiri Gas & Power Private Ltd.(a JV Company).

58. Disclosure as per Ind AS 27 ‘Separate financial statements'

a) Investment in Subsidiaries:*

Company Name Country of incorporation Proportion of ownership interest
31 March 31 March 1 April
2017 2016 2015
NTPC Electric Supply Company Ltd. India 100.00 100.00 100.00
NTPC Vidyut Vyapar Nigam Ltd. India 100.00 100.00 100.00
Kanti Bijlee Utpadan Nigam Ltd. India 65.00 65.00 65.00
Bhartiya Rail Bijlee Company Ltd. India 74.00 74.00 74.00
Patratu Vidyut Utpadan Nigam Ltd. India 74.00 74.00 -

b) Investment in Joint Venture Entities:*

Company Name Country of incorporation Proportion of ownership interest
31 March 31 March 1 April
2017 2016 2015
Utility Powertech Ltd. India 50.00 50.00 50.00
NTPC-GE Power Services Private Ltd. (Previously NTPC- Alstom Power Services Private Ltd.) India 50.00 50.00 50.00
NTPC-SAIL Power Company Ltd. (Previously NTPC-SAIL Power Company Private Ltd.) India 50.00 50.00 50.00
NTPC-Tamil Nadu Energy Company Ltd. India 50.00 50.00 50.00
Ratnagiri Gas & Power Private Ltd. India 25.51 25.51 28.91
Aravali Power Company Private Ltd. India 50.00 50.00 50.00
NTPC-SCCL Global Ventures Private Ltd.** India - - 50.00
NTPC BHEL Power Projects Private Ltd. India 50.00 50.00 50.00
Meja Urja Nigam Private Ltd. India 50.00 50.00 50.00
BF-NTPC Energy Systems Ltd. India 49.00 49.00 49.00
National Power Exchange Ltd.** India - - 16.67
Company Name Country of incorporation Proportion of ownership interest
31 March 31 March 1 April
2017 2016 2015
Nabinagar Power Generating Company Private Ltd. India 50.00 50.00 50.00
Transformers and Electricals Kerala Ltd. India 44.60 44.60 44.60
National High Power Test Laboratory Private Ltd. India 20.00 21.63 21.63
Energy Efficiency Services Ltd. India 31.70 28.80 25.00
CIL NTPC Urja Private Ltd. India 50.00 50.00 50.00
Anushakti Vidhyut Nigam Ltd. India 49.00 49.00 49.00
Pan-Asian Renewables Private Ltd.** India - - 50.00
Hindustan Urvarak and Rasayan Ltd. India 33.28 - -
Trincomalee Power Company Ltd. Srilanka 50.00 50.00 50.00
Bangladesh-India Friendship Power Company Pvt.Ltd. Bangladesh 50.00 50.00 50.00

* Equity investments in subsidiaries and joint ventures are measured at cost as per the provisions of Ind AS 27 on ‘Separate Financial Statements'.

** Not considered as JV as at 31 March 2017 and 31 March 2016 due to non existence of control and accounted for as equity instruments in the financial statements of 31 March 2017 & 31 March 2016 (Refer Note 7).

59. Disclosure as per Ind AS 33 ‘Earnings per Share'

(i) Basic and diluted earnings per share (in )

31 March 2017 31 March 2016
From operations including regulatory deferral account balances (a) 11.38 13.06
From regulatory deferral account balances (b) 0.32 0.01
From operations excluding regulatory deferral account balances (a)-(b) 11.06 13.05
Nominal value per share 10.00 10.00

(ii) Profit attributable to equity shareholders (used as numerator) (Rs Crore)

31 March 2017 31 March 2016
From operations including regulatory deferral account balances (a) 9,385.26 10,769.60
From regulatory deferral account balances (b) 263.92 9.51
From operations excluding regulatory deferral account balances (a)-(b) 9,121.34 10,760.09

(iii) Weighted average number of equity shares (used as denominator) (Nos.)

31 March 2017 31 March 2016
Opening balance of issued equity shares 8,245,464,400 8,245,464,400
Effect of shares issued during the year, if any - -
Weighted average number of equity shares for Basic and Diluted EPS 8,245,464,400 8,245,464,400

60. Disclosure as per Ind AS 36 ‘Impairment of Assets'

As required by Ind AS 36, an assessment of impairment of assets was carried out and based on such assessment, the Company has accounted impairment losses as under:

a) Due to decrease in value in use in respect of plant and equipment of a Solar PV Station of the Company which is under ‘Generation of energy Segment', an impairment loss of Rs Nil (31 March 2016: Rs 4.48 crore) was recognised in ‘Depreciation/amortisation and impairment expense' in the Statement of Profit and Loss. Also Refer Note 2 (j) in this regard.

During the year ended 31 March 2017, an amount of Rs 0.73 crore towards the impairment loss has been reversed due to increase in the value in use as compared to the carrying value of the Solar PV station.

For the Company, the recoverable amount of the PPE & intangible assets of the CGUs is value in use and amounts to 1,42,042.78 crore (31 March 2016: Rs 1,40,717.96 crore). The discount rate used for the computation of value in use for the generating plant is 9.13% (31 March 2016: 8.98%) and for solar plant is 7.95% (31 March 2016: 7.83%).

b) The Company has an investment of Rs 974.30 crore (31 March 2016 and 1 April 2015: Rs 974.30 crore) in the equity shares of M/s Ratnagiri Gas & Power Pvt.Ltd. (RGPPL), a joint venture of the Company. RGPPL has incurred losses during last few years which has resulted in erosion of net worth of the Company. Also, value of RGPPL's assets has declined during the period significantly more than would be expected as a result of the passage of time or normal use. Further, neither Power Block nor LNG Terminal (CGUs) of RGPPL are operating at their installed capacity from last many years. The recoverable amount of this investment has been assessed at Rs 191.35 crore and accordingly the Company has recognized an impairment loss of Rs 782.95 crore in respect of such investment and disclosed the same as ‘Exceptional items - Impairment loss on investments' in the Statement of Profit and Loss.

Recoverable amount is based on the value in use as its fair value less cost of disposals cannot be estimated. Value in use of RGPPL has been arrived at by an independent expert after considering the proposed demerger scheme of LNG Terminal and Power Block which has been approved by its Board of Directors with effective date of 1 January 2016 and awaiting approval of NCLT, New Delhi. RGPPL is committed for implementing the plan pursuant to receipt of necessary approvals and has communicated the restructuring scheme to all stake holders.

The recoverable amount is based on the present value of future cash flows expected to be derived from the LNG terminal till 31 March 2037 and Power block till 31 March 2039. These periods has been considered based on the estimated useful lives of the respective CGU's.

For LNG Terminal, following are the key assumptions which are based on the past experience and expected completion of breakwater facility in 2021 : Capacity : FY 2018 till 2021 30 ships/year; FY 2022 onwards: 80 ships per year

Utilisation : FY 2018-21 - 80%
FY 2022-25 55%
FY 2026 65%
FY 2027 and beyond 70%
Annual escalation of tariff - 5%

For Power Plant, no growth rates has been assumed and the past experience has been considered for future cash flows which are expected to be derived from this CGU

The post tax discount rates used for the future cash flows are in the range of 9.4% to 11%. Also Refer Note 6(h) in this regard.

61. Disclosure as per Ind AS 37 ‘Provisions, Contingent Liabilities and Contingent Assets'

Movements in provisions: Rs Crore

Particulars Provision for obligations incidental to land acquisition Provision for tariff adjustment Others Total
31 March 2017 31 March 2016 31 March 2017 31 March 2016 31 March 2017 31 March 2016 31 March 2017 31 March 2016
Carrying amount at the beginning of the year 3,736.84 3,098.72 1,234.41 1,243.64 563.66 505.02 5,534.91 4,847.38
Additions during the year 429.68 965.37 98.88 145.28 156.03 259.12 684.59 1,369.77
Amounts used during the year (440.19) (274.14) - - (6.69) (48.86) (446.88) (323.00)
Reversal/adjustments during the year (30.55) (53.11) (162.50) (154.51) (2.70) (151.62) (195.75) (359.24)
Carrying amount at the end of the year 3,695.78 3,736.84 1,170.79 1,234.41 710.30 563.66 5,576.87 5,534.91

i) Provision for obligations incidental to land acquisition

Provision for obligations incidental to land acquisition includes expenditure on rehabilitation & resettlement (R&R) including the amounts payable to the project affected persons (PAPs) towards land, expenditure for providing community facilities and expenditure in connection with environmental aspects of the project. The Company has estimated the provision based on the Rehabilitation Action Plan (RAP) approved by the board/competent authority or agreements/directions/demand letters of the local/government authorities. The outflow of said provision is expected to be incurred immediately on fulfilment of conditions by the land oustees/receipts of directions of the local/government authorities.

ii) Provision for tariff adjustment

The Company aggrieved over many of the issues considered by the CERC in the tariff orders for its stations for the period 2004-09 had filed appeals with the Appellate Tribunal for Electricity (APTEL). The APTEL disposed off the appeals favourably directing the CERC to revise the tariff orders as per directions and methodology given. Some of the issues decided in favour of the Company by the APTEL were challenged by the CERC in the Hon'ble Supreme Court of India. Subsequently, the CERC has issued revised tariff orders for all the stations except one for the period 2004-09, considering the judgment of APTEL subject to disposal of appeals pending before the Hon'ble Supreme Court of India. Towards the above and other anticipated tariff adjustments, provision of 98.88 crore(31 March 2016: Rs 145.28 crore, 1 April 2015: 148.10 crore) has been made during the year and in respect of some of the stations, an amount of 162.49 crore (31 March 2016: Rs 154.51 crore, 1 April 2015: Rs 180.16 crore) has been written back.

iii) Others

Provision for others comprise 68.24 crore (31 March 2016: Rs 65.35 crore, 1 April 2015: Rs 58.64 crore) towards cost of unfinished minimum work programme demanded by the Ministry of Petroleum and Natural Gas (MoP&NG) including interest thereon in relation to block AA-ONN-2003/2 [Refer Note 63 (b)], Rs 640.25 crore (31 March 2016: Rs 496.44 crore, 1 April 2015: Rs 440.35 crore) towards provision for cases under litigation and Rs 1.81 crore (31 March 2016: 1.87 crore, 1 April 2015: Rs 6.03 crore) towards provision for shortage in property, plant and equipment on physical verification pending investigation.

iv) In respect of provision for cases under litigation, outflow of economic benefits is dependent upon the final outcome of such cases.

v) In all these cases, outflow of economic benefits is expected within next one year.

vi) Sensitivity of estimates on provisions:

The assumptions made for provisions relating to current period are consistent with those in the earlier years. The assumptions and estimates used for recognition of such provisions are qualitative in nature and their likelihood could alter in next financial year. It is impracticable for the Company to compute the possible effect of assumptions and estimates made in recognizing these provisions.

vii) Contingent liabilities and contingent assets

Disclosure with respect to claims against the Company not acknowledged as debts and contingent assets are made in Note 71.

62. First-time adoption of Ind AS

These are the Company's first financial statements in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, the Company prepared its financial statements in accordance with previous GAAP, including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Company's Ind AS Opening Balance Sheet is 1 April 2015 (the date of transition to Ind AS).

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS Balance Sheet at 1 April 2015 (the Company's date of transition). According to Ind AS 101, the first Ind AS financial statements must use recognition and measurement principles that are based on standards and interpretations that are effective at 31 March 2017, the date of first-time preparation of financial statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS financial statements.

Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1 April 2015 compared with those presented in the previous GAAP Balance Sheet as of 31 March 2015, were recognized in equity under retained earnings within the Ind AS Balance Sheet.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company's financial position, financial performance and cash flows is set out in the following tables and notes.

Optional exemptions availed and mandatory exceptions

In the Ind AS Opening Balance Sheet as at 1 April 2015, the carrying amounts of assets and liabilities from the previous GAAP as at 31 March 2015 are generally recognized and measured according to Ind AS in effect as on 31 March 2017.

However for certain individual cases, Ind AS 101 provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and exceptions in preparing its Ind AS Opening Balance Sheet:

i) Property, plant and equipment & Intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

ii) Borrowings

Ind AS 101 permits that if it is impracticable for an entity to apply retrospectively the effective interest method in Ind AS 109 ‘Financial Instruments', the fair value of the financial liability at the date of transition to Ind AS shall be the new amortised cost of that financial liability at the date of transition to Ind AS.

The borrowings outstanding as at the transition date, consists of loans drawn more than fifteen years back, some drawls with multiple tranches in different financial years with varying interest rates. In some cases, the rate of interest on the loans was both fixed and floating in nature and drawl of the loans have been made in multiple installments with each drawl to be treated as a separate transaction for the purpose of computing the amortised cost. In case of some loans the drawl period stretches beyond 3-4 years and in case of loans with floating interest rate, the rates have been reset at frequent intervals and reset rates are also applicable for previous drawls from that date onwards. Implementing the requirement of amortised cost retrospectively is impracticable and also the amount is expected to be immaterial and hence the Company has amortised the transaction costs as an adjustment of interest expense of the term of the related loan w.e.f. the transition date to Ind AS i.e. 1 April 2015.

iii) Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date.

Accordingly, the Company has elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

iv) Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS.

The Company has elected to apply this exemption for its investment in equity instruments in PTC (India) Limited .

v) Arrangements containing a lease

Appendix C, Ind AS 17 requires an entity to assess whether an arrangement contains a lease at its inception.

However, Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS. The Company has elected to apply this exemption for such contracts/ arrangements.

vi) Long term foreign currency monetary items

The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

vii) Estimates

An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTPL or FVTOCI;

- Investment in debt instruments carried at FVTPL; and

- Impairment of financial assets based on expected credit loss model.

viii) Classification and measurement of financial assets

The Company has also elected the option under Ind AS 101 by not applying the requirement of Ind AS 109 in case of employee loans which requires that these shall be recognized initially at fair value and subsequently at amortized cost. As per the exemption, if an entity finds impracticable to apply retrospectively effective interest method, the fair value of the financial asset at the date of transition to Ind AS shall be the new amortized cost of that financial asset at the date of transition to Ind AS.

Reconciliation of equity as at 1 April 2015 and as at 31 March 2016

Rs Crore

Particulars Note 1 April 2015 31 March 2016
Previous GAAP* Adjustments Ind AS Previous GAAP* Adjustments Ind AS
ASSETS
Non-current assets
Property, plant and equipment a,c,d,e 78,586.91 (433.53) 78,153.38 91,355.82 143.54 91,499.36
Capital work in progress a,b,d 56,463.11 - 56,463.11 66,216.04 (10.45) 66,205.59
Other Intangible assets 262.16 - 262.16 273.99 (0.10) 273.89
Intangible assets under development 30.38 - 30.38 217.61 - 217.61
Financial assets
Investments f 7,154.07 85.08 7,239.15 7,949.52 64.80 8,014.32
Trade Receivable - - - 71.18 - 71.18
Loans g 646.09 (177.63) 468.46 619.46 (178.53) 440.93
Other financial assets c 466.29 515.19 981.48 510.99 511.20 1,022.19
Other non-current assets g 16,183.39 160.46 16,343.85 17,479.58 157.22 17,636.80
Current Assets
Inventories a 7,453.00 (155.94) 7,297.06 7,192.53 (182.16) 7,010.37
Financial assets
Investments 1,983.34 - 1,983.34 378.72 - 378.72
Trade receivables n 7,604.37 - 7,604.37 7,772.81 (40.59) 7,732.22
Cash and cash equivalents 280.65 - 280.65 1,372.40 - 1,372.40
Particulars Note 1 April 2015

31 March 2016

Previous GAAP* Adjustments Ind AS Previous GAAP* Adjustments Ind AS
Other bank balances 12,994.35 - 12,994.35 3,088.38 - 3,088.38
Loans 272.63 - 272.63 251.78 - 251.78
Other financial assets c 2,905.66 24.72 2,930.38 5,213.24 32.79 5,246.03
Other current assets g 3,848.33 17.18 3,865.51 4,655.21 21.34 4,676.55
Total Assets 197,134.73 35.53 197,170.26 214,619.26 519.06 215,138.32
EQUITY & LIABILITIES
Equity
Equity Share capital 8,245.46 - 8,245.46 8,245.46 - 8,245.46
Other equity l 73,411.89 2,172.75 75,584.64 80,536.54 2,511.70 83,048.24
Liabilities
Non-current liabilities
Financial liabilities
Borrowings b,e 78,532.33 32.18 78,564.51 85,083.26 13.69 85,096.95
Trade payables 3.47 - 3.47 8.37 - 8.37
Other financial liabilities d 2,625.37 (411.65) 2,213.72 3,381.65 (382.38) 2,999.27
Provisions 1,115.71 - 1,115.71 436.41 - 436.41
Deferred tax liabilities (Net) 979.07 - 979.07 1,152.21 - 1,152.21
Other non-current liabilities 0.01 - 0.01 49.68 - 49.68
Current liabilities
Financial liabilities
Borrowings - - - 1,299.50 - 1,299.50
Trade payables 5,953.15 - 5,953.15 5,311.64 - 5,311.64
Other financial liabilities e 16,434.18 3.14 16,437.32 17,437.06 7.96 17,445.02
Other current liabilities 373.45 - 373.45 775.59 - 775.59
Provisions i 7,758.75 (1,736.71) 6,022.04 8,508.32 (1,732.63) 6,775.69
Current Tax Liabilities (Net) - - - 151.30 - 151.30
Deferred revenue c, o 1,394.15 (24.18) 1,369.97 1,946.62 100.72 2,047.34
Rate regulated liabilities 307.74 - 307.74 295.65 - 295.65
Total equity and liabilities 197,134.73 35.53 197,170.26 214,619.26 519.06 215,138.32

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

Reconciliation of total comprehensive income for the year ended 31 March 2016

Rs Crore

Particulars Note Previous GAAP* Adjustments Ind AS
INCOME
Revenue a,c,j 70,506.80 337.01 70,843.81
Other income g 1,189.27 (23.92) 1,165.35
Total Income 71,696.07 313.09 72,009.16
EXPENDITURE
Fuel cost 43,793.25 5.34 43,798.59
Employee benefits expense g,k 3,609.32 (27.67) 3,581.65
Finance expenses b,d 3,230.36 66.05 3,296.41
Depreciation and amortization a,b,c,d,e 5,425.32 (252.98) 5,172.34
Other expenses a,d,j 5,591.24 (14.75) 5,576.49
Total Expenses 61,649.49 (224.01) 61,425.48
Profit before tax and Rate Regulated Activities(RRA) 10,046.58 537.10 10,583.68
Add: Movements in regulatory deferral account balances 12.09 - 12.09
Profit before tax 10,058.67 537.10 10,595.77
Current tax
Current year 2,093.51 10.41 2,103.92
Earlier years (2,453.48) - (2,453.48)
Tax expense/(saving) pertaining to RRA 2.58 - 2.58
Deferred tax 226.88 - 226.88
Less: Deferred asset for deferred tax liability 53.73 - 53.73
(184.24) 10.41 (173.83)
Profit after tax 10,242.91 526.69 10,769.60
Other comprehensive income Items that will not be reclassified to profit or loss (net of tax)
- Net actuarial gains/(losses) on defined benefit plans k - (38.35) (38.35)
- Net gains/(losses) on fair value of equity instruments through other comprehensive income f - (20.28) (20.28)
Other comprehensive income for the year, net of income tax - (58.63) (58.63)
Total comprehensive income for the year 10,242.91 468.06 10,710.97

* The previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purposes of this note.

Reconciliation of total equity as at 31 March 2016 and 1 April 2015

Rs Crore

Particulars Note 31 March 1 April 2015
2016
Total equity (shareholder's funds) as per previous GAAP 88,782.00 81,657.35
Adjustments:
Proposed dividend and tax i 1,732.64 1,736.71
Capitalisation of major overhaul & spares a 468.54 -
Recognition of financial assets/liabilities at amortised cost d,g 349.20 411.65
Depreciation and amortization a,b,c,d,e 99.28 (49.55)
Fair valuation of investments f 64.80 85.08
Recognition of government grant as deferred revenue o (125.33) (0.30)
Provision of rebate to customers n (40.59) -
Impact of embedded leases c (1.52) 24.48
Recognition of liabilities on leasehold land (35.32) (35.32)
Total adjustments 2,511.70 2,172.75
Total equity as per Ind AS 91,293.70 83,830.10

Reconciliation of total comprehensive income for the year ended 31 March 2016

Rs Crore

Particulars Note 31 March 2016
Profit after tax as per previous GAAP 10,242.91
Adjustments:
Capitalisation of major overhaul & spares a 468.54
Depreciation and amortization a,b,c,d,e 148.83
Actuarial loss on defined benefit plans recognised in OCI (net of tax) k 38.35
Recognition of financial assets/liabilities at amortised cost d,g (62.44)
Provision of rebate to customers (40.59)
Impact of embedded leases c (26.00)
Total adjustments 526.69
Profit after tax as per Ind AS 10,769.60
Other comprehensive income (net of tax):
Actuarial loss on defined benefit plans k (38.35)
Fair valuation of investments f (20.28)
Total comprehensive income as per Ind AS 10,710.97

Notes to first-time adoption:

(a) Property, plant & equipment

On the transition date, the Company has capitalised certain items of spare parts which are meeting definition of property, plant & equipment as per Ind AS 16 as PPE. Under previous GAAP, these spare parts were recognised as Inventories. As a result, Company has recognised an amount of Rs 155.94 crore from inventories to PPE as at the transition date on which an amount of Rs 49.55 crore has bee n charged as depreciation with corresponding adjustment in retained earnings. For the year ended 31 March 2016, an amount of Rs 79.79 crore has been recognised from inventories to PPE. During the year ended 31 March 2016, value of inventory has increased by an amount of Rs 53.57 crore with corresponding increase in profit due to reversal of repair and maintenance expenses.

In addition to above, Ind AS 16 requires significant component parts of an item of property, plant and equipment to be depreciated separately. As explained in Note 1.C.1, the cost of major inspections/overhauls is capitalised and depreciated separately over the period to the next major inspection/overhaul. For the year ended on 31 March 2016, an amount of Rs 404.81 crore and Rs 10.17 crore has been capitalised under PPE and CWIP respectively, resulting in corresponding increase in profit due to reversal of repair and maintenance expenses. Depreciation on this asset was charged in the statement of profit and loss of Rs 106.04 crore.

Further, there was increase in net block as on 31 March 2016 to the extent of Rs 264.46 crore and decrease of 0.10 crore in intangible assets due to capitalisation of spares & providing depreciation thereon with revised life, depreciation on spares capitalised from inventory, transaction cost adjustment, unwinding of discount on vendor liabilities, amortisation of leased land treated as finance lease, etc.

(b) Borrowings

Under previous GAAP, the Company has followed the policy of charging the transaction costs to the income statement or capitalized to property, plant and equipment as and when incurred. Under Ind AS, transaction costs are amortized as an adjustment of interest expense over the term of the related loan using effective interest rate method. The Company has raised foreign currency bonds/Notes, secured and unsecured loans from banks and financial institutions and other foreign currency term loans on which it has incurred transaction costs. The above resulted in reduction in borrowings as at 31 March 2016 by Rs 29.33 crore with corresponding reduction in profit or loss and CWIP by Rs 1.36 crore and Rs 27.97 crores respectively.

(c) Application of Appendix C, Ind AS 17

The Company has entered into power purchase agreements (PPAs or arrangements) with beneficiaries for generation and supply of electricity. Under the arrangements, beneficiaries pay fixed capacity charges primarily for recovery of capital cost, return on investment, fixed operations and maintenance expense and interest on working capital and variable energy charge primarily for recovery of fuel cost.

Under Ind AS, the amounts receivable under these arrangements have the substance of a lease under the provisions of Appendix C to Ind AS 17 as these arrangements are dependent on use of specific assets and convey the right to use those assets. The evaluation of the arrangements is based on the facts and circumstances existing at the date of transition of the lease. Based on these evaluations, the Company has identified that the arrangements entered into with its customer for one of the station (Stage I) and two stations are to be treated as leases, and analyzed with reference to Ind AS 17 for classification as either finance or operating leases. Accordingly, the arrangement in case of one of the Stage of a station is classified as finance lease and of two stations as operating lease. Under previous GAAP, the respective power plants were capitalized as fixed assets and the amounts receivable from the beneficiaries were recognized as revenue from sale of electricity.

Under Ind AS, one stage of a station is treated as assets given on finance lease and the amounts receivable from beneficiary has been segregated into finance income, repayment of principal and service income and accounted for accordingly.

On transition date the carrying value of property, plant and equipment has been reduced by Rs 539.92 crore with corresponding increase in other non-current financial assets (finance lease receivable) by 515.19 crore & other current financial assets by Rs 24.72 crore. Further, an amount of Rs 24.48 crore has been transferred from deferred revenue to retained earnings. During the year ended 31 March 2016, property, plant and equipment has been reduced by Rs 27.03 crore with corresponding increase in other current & non current financial assets (finance lease receivable). Further, revenue from sale of energy was reduced by Rs 110.38 crore with corresponding recognition of interest income on assets on finance lease under ‘Other operating income' by Rs 84.25 crore and reduction in value of finance lease receivable by 26.13 crore.

For stations treated as assets given on operating lease, the amount receivable from beneficiary has been segregated into lease income and service income and lease income is to be recognized in income on a straight line basis over the lease term.

During the year ending 31 March 2016, this adjustment has resulted in a decrease in revenue from sale of electricity by Rs 223.25 crore and corresponding recognition of Lease rentals on assets on operating lease under ‘Other operating revenue'.

(d) Financial liabilities

Under previous GAAP, liabilities such as payable for capital expenditure, retention money etc. are recorded at cost.

However, under Ind AS, liabilities in which the Company has a contractual obligation to deliver cash are classified as financial liabilities and recorded at amortized cost. Therefore, such financial liabilities have been discounted to present value since they do not carry any interest. The upfront benefit on transition date due to the discounting has been adjusted against the retained earnings. Further, interest cost on unwinding of discount has been capitalized to the cost of property, plant and equipment where such interest cost can be capitalized in accordance with Ind AS 23 ‘Borrowing cost' otherwise charged off to statement of profit or loss.

The effect of the adjustments resulted in reduction of the value of other non current financial liabilities by Rs 411.65 crore along with corresponding increase in retained earnings as on the transition date. During the year ended 31 March 2016, value of financial liabilities was increased by Rs 29.27 crore by corresponding increase/(reduction) in statement of profit and loss, property, plant and equipment and CWIP by Rs 72.80 crore, (-) Rs 52.08 crore and Rs 8.55 crore respectively.

(e) Land under finance lease

Under previous GAAP, leasehold land was capitalized at an amount equal to the upfront payments made at the time of lease. However, under Ind AS, such leases are capitalised at the present value of the total minimum lease payments to be paid over the lease term. Accordingly, future lease rentals have now been recognised as ‘finance lease obligation' at their present values. The effect of the adjustment has resulted in reduction in retained earnings by Rs 35.32 crore with corresponding increase innon current financial liabilities by 32.18 crore and current financial liabilities by Rs 3.14 crore towards finance lease obligation as at 1 April 2015. During financial year 2015-16 there was increase in PPE by 13.16 crore, reduction in CWIP by Rs 1.19 crore and increase in non current financial liabilities by Rs 7.68 crore and current financial liabilities by Rs 4.29 crore towards finance lease obligations. There was insignificant impact on profits.

(f) Fair valuation of Investments

Under previous GAAP, the company accounted for long term investments in unquoted and quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind-AS, the Company has designated quoted investments as FVTOCI investments. Ind-AS requires FVTOCI investments to be measured at fair value. The resulting fair value changes in these investments have been recognised in a separate component of equity (FVTOCI reserve) as at the date of transition and subsequently in other comprehensive income.

This has resulted in increase in retained earnings by Rs 85.08 crore with corresponding increase in value of financial assets - investments as at the date of transition. As at 31 March 2016, other comprehensive has decreased by Rs 20.28 crore with corresponding decrease in financial assets - Investments.

(g) Financial assets

Under previous GAAP, employee loans and other long term advances to be settled in cash or another financial asset are recorded at cost.

However, under Ind AS, certain assets covered under Ind AS 32 meet the definition of financial assets which include employee loans and long term advances to be settled in cash or another financial asset are classified as financial assets at amortized cost. Thus in case interest rate on such financial assets is lower than market rate, these financial assets have been discounted to present value.

The effect of the adjustments resulted in reduction in the value of financial assets - loans by Rs 177.63 crore and increase in value of other non-current assets by Rs 160.46 crore & other current assets by Rs 17.18 crore (towards the deferred payroll expenses) on transition date. During the year ended 31 March 2016, the value of financial assets - loans reduced by Rs 0.90 crore with corresponding increase in other non-current and current assets by Rs 0.92 crore and credited the statement of Profit and Loss by Rs 0.02 crore.

(h) Deferred taxes

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 - Income taxes requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in insignificant amount of deferred tax on new temporary differences and accordingly not recognised.

(i) Proposed Dividend

Under previous GAAP, the Company had accounted for proposed dividends relating to year ended 31 March 2015 in that year, though the approval of that dividend took place after the reporting date. Under Ind AS, proposed dividends do not meet the definition of liability until they have been approved by shareholders at the Annual General Meeting. Therefore, the Company has not recognized a liability for dividend that has been proposed but will not be approved until after the reporting date.

The effect of the adjustment is to increase the retained earnings by Rs 1,736.71 crores with corresponding decrease in provisions as at 1 April 2015 and Rs 1,732.63 crore as at 31 March 2016.

(j) Electricity duty

Under previous GAAP, sale of electricity was presented as net of electricity duty. Electricity duty was separately presented on the face of statement of profit and loss. However, under Ind AS, sale of electricity is presented inclusive of electricity duty. Thus sale of electricity under Ind AS has increased by Rs 729.20 crore with a corresponding increase in other expenses due to this change.

(k) Employee benefits

Both under previous GAAP and Ind-AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind-AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised in Other Comprehensive Income.

As a result, profit for the year ended 31 March 2016 increased by Rs 38.35 crore (net of tax) with corresponding decrease in Other comprehensive income during the year.

(l) Other equity

Retained earnings as at 1 April 2015 has been adjusted consequent to the above Ind AS transition adjustments. Refer ‘Reconciliation of total equity as at 31 March 2016 and 1 April 2015' as given above for details.

(m) Other comprehensive income

Under previous GAAP, the Company has not presented other comprehensive income (OCI) separately. Items that have been reclassified from statement of profit and loss to other comprehensive income includes remeasurement of defined benefit plans and fair value gain/loss on FVTOCI equity instruments. Hence, previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

(n) Rebate to customers

During the year ending 31 March 2016, Trade receivable has been reduced to the extent of Rs 508.46 crores towards rebate to customers.

(o) Deferred Revenue

On transition date an amount of Rs 24.48 crore has been transferred from deferred revenue to retained earnings and 0.30 crore has been transferred from capital reserve to deferred revenue towards Government grant received. Further during the year ending 31 March 2016 an amount of 125.03 crore has been transfered from capital reserve to deferred revenue towards Government grants received and Rs 0.13 crore transferred from deferred revenue to retained earnings. (p) Impact of Ind AS adoption on the Statement of Cash Flows for the year ended 31 March 2016:

Rs Crore

Particulars Previous GAAP Adjustments Ind AS
Net cash flow from operating activities 14,503.53 9,483.85 23,987.38
Net cash flow from investing activities (18,422.65) 76.56 (18,346.09)
Net cash flow from financing activities (4,436.38) (113.24) (4,549.62)
Net increase/ (decrease) in cash and cash equivalents during the year (8,355.50) 9,447.17 1,091.67
Cash and cash equivalents at the beginning of the year 13,105.41 (12,824.76) 280.65
Effect of exchange rate changes on cash and cash equivalent held in foreign currency 0.08 - 0.08
Cash and cash equivalent at the end of the year 4,749.99 (3,377.59) 1,372.40

Cash flow from operating activities under Ind AS has increased mainly due to reclassification of other bank balances from cash and cash equivalents to working capital changes and reclassification of cash flow from investing activities as a result of recognition of certain property, plant & equipment as finance lease receivables, capitalisation of overhauling cost and capital spares as property, plant & equipment and reclassification of certain capital advances to other advances. Further, cash flow from financing activities increased mainly due to reclassification of grants received to deferred revenue.

63. Disclosure as per Ind AS 106, ‘Exploration for and Evaluation of Mineral Resources'

a) The Company along-with some public sector undertakings has entered into Production Sharing Contracts (PSCs) with GOI for three oil exploration blocks namely KG-OSN-2009/1, KG-OSN-2009/4 and AN-DWN-2009/13 under VIII round of New Exploration Licensing Policy (NELP VIII) with 10% participating interest (PI) in each of the blocks.

In the case of Block KG-OSN-2009/1 & AN-DWN-2009/13, the Company along-with the consortium partners has decided to relinquish both the blocks and Oil and Natural Gas Commission (ONGC), the operator has submitted an application to Directorate General of Hydrocarbons (DGH) in this regard.

Based on the un-audited statement of the accounts for the above blocks forwarded by ONGC, the operator, the Company's share in the assets and liabilities as at 31 March 2017 and income and expenses for the year is as under:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
(Unaudited) (Unaudited) (Unaudited)
Assets 0.02 0.03 0.62
Liabilities 1.35 3.15 2.41
Capital commitments [Unfinished Minimum Work Programme (MWP)] 0.29 30.69 92.54
Rs Crore
Particulars 31 March 2017 31 March 2016
(Unaudited) (Unaudited)
Expenses 14.81 7.05

For the year 31 March 2017 and 31 March 2016, there are no income and operating/investing cash flow from exploration activities.

The exploration activities in block KG-OSN-2009/4 were suspended w.e.f. 11 January 2012 due to non-clearance by the Ministry of Defence, GOI. Subsequently, DGH vide letter dated 29 April 2013 has informed ONGC that the block is cleared conditionally wherein block area is segregated between No Go zone, High-risk zone and

Permitted zone. As the permitted area is only 38% of the total block area the consortium has submitted proposal to DGH for downward revision of MWP of initial exploration period. DGH has agreed for drilling of one well and have instructed to carry out airborne Full Tensor Gravity Gradiometer (FTG) survery in conditionally and partial cleared area in lieu of MoD proportionate reduced 317 Sq KM 3D survey, 589 LKM of 2D survey and drilling of two wells.

ONGC has completed drilling of one well. Airborne Full Tensor Gravity Gradiometer (FTG) survery work is under progress. b) Exploration activities in the block AA-ONN-2003/2 were abandoned in January 2011 due to unforeseen geological conditions & withdrawal of the operator. Attempts to reconstitute the consortium to accomplish the residual exploratory activities did not yield result. In the meanwhile, Ministry of Petroleum & Natural Gas demanded in

January 2011 the cost of unfinished minimum work programme from the consortium with NTPC's share being USD 7.516 million. During the year, provision in this respect has been updated to Rs 68.24 crore from Rs 65.35 crore along-with interest. The Company has sought waiver of the claim citing force majeure conditions at site leading to discontinuation of exploratory activities. The Company has accounted for expenditure of Rs 0.07 crore (previous year Rs 0.06 crore) towards the establishment expenses of M/s Geopetrol International, the operator to complete the winding up activities of the Block. The Company's share in the assets and liabilities as at 31 March 2017 and income and expenses for the year is as under:

Particulars 31 March 2017 31 March 2016 1 April 2015
(Unaudited) (Unaudited) (Unaudited)
Assets 9.19 9.19 9.19
Liabilities 70.19 67.73 59.25
Rs Crore
Particulars 31 March 2017 31 March 2016
(Unaudited) (Unaudited)
Expenses 0.07 0.06

For the year 31 March 2017 and 31 March 2016, there are no income and operating/investing cash flow from exploration activities. c) The Company has entered into production sharing contracts (PSC) with GOI for exploration block namely CB-ONN-2009/5 VIII round of New Exploration Licensing Policy (NELP VIII) with 100% participating interest (PI) in the block.

Minimum Work Program (MWP) for the block has been completed. No oil or gas of commercial value was observed in any of the wells. Accordingly, proposal for relinquishment of the block has been submitted to GOI.

Based on the audited statement of the account for the above block, Company's assets and liabilities as at 31 March 2017 and expenditure for the year are given below:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Assets 6.17 83.92 46.40
Liabilities 9.70 16.95 23.43
Capital commitments (Unfinished MWP) - 35.94 140.27
Rs Crore
Particulars 31 March 2017 31 March 2016
Expenses 99.53 30.02
Operating cash flows from exploration activities 28.97 74.02

Expenses charged off during the year ended 31 March 2017 include opening capital work-in-progress of Rs 74.40 crore as at 1 April 2016. For the year 31 March 2017 and 31 March 2016, there are no income and investing cash flow from exploration activities.

64. Disclosure as per Ind AS 108 ‘Operating segments'

A. General Information

The Company has two reportable segments, as described below, which are the Company's strategic business units. The strategic business units offer different products and services, and are managed separately because they require different technology and marketing strategies. For each of the strategic business units, the Chief operating decision maker (CODM) reviews internal management reports on at least a quarterly basis.

The following summary describes the operations in each of the Company's reportable segments:

Generation of energy : Generation and sale of bulk power to State Power Utilities.
Other operations : It includes providing consultancy, project management & supervision, oil and gas exploration and coal mining.

Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before income tax, as included in the internal management reports that are reviewed by the Company's Board. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.

B. Information about reportable segments and reconciliation to amounts reflected in the financial statements:

Rs Crore

Particulars Generation of energy Others Total
31 March 2017 31 March 2016 31 March 2017 31 March 2016 31 March 2017 31 March 2016
Segment revenue
Sale of energy/ consultancy, project management and supervision fee * 77,311.54 70,184.87 163.70 117.04 77,475.24 70,301.91
Other income 1,550.38 902.28 2.27 3.35 1,552.65 905.63
78,861.92 71,087.15 165.97 120.39 79,027.89 71,207.54
Unallocated corporate interest and other income 314.41 801.62
Total 78,861.92 71,087.15 165.97 120.39 79,342.30 72,009.16
Segment result** 17,765.47 14,212.77 (64.51) (16.43) 17,700.96 14,196.34
Unallocated corporate interest and other income 314.41 801.62
Unallocated corporate expenses, interest and finance charges 5,627.47 4,402.19
Profit before tax 12,387.90 10,595.77
Income tax (net) 3,002.64 (173.83)
Profit after tax 9,385.26 10,769.60
Depreciation/ amortisation/ impairment*** 5,868.38 5,108.06 0.26 0.32 5,868.64 5,108.38
Non-cash expenses other than depreciation 136.00 174.45 2.96 6.71 138.96 181.16
Capital expenditure 27,040.16 27,864.61 1,220.97 1,166.98 28,261.13 29,031.59
Rs Crore
Particulars Generation of energy Others Total
31 March 2017 31 March 2016 1 April 2015 31 March 2017 31 March 2016 1 April 2015 31 March 2017 31 March 2016 1 April 2015
Segment assets 126,728.63 118,667.36 102,743.68 3,518.96 2,501.19 1,530.67 130,247.59 121,168.55 104,274.35
Unallocated corporate and other assets 106,329.90 93,969.77 92,895.91
Total assets 126,728.63 118,667.36 102,743.68 3,518.96 2,501.19 1,530.67 236,577.49 215,138.32 197,170.26
Segment liabilities 14,531.36 14,154.98 13,621.38 2,159.92 1,577.65 710.58 16,691.28 15,732.63 14,331.96
Unallocated corporate and other liabilities 123,654.98 108,111.99 99,008.20
Total liabilities 14,531.36 14,154.98 13,621.38 2,159.92 1,577.65 710.58 140,346.26 123,844.62 113,340.16

* Includes Rs 995.59 crore (31 March 2016: (-) Rs 1,642.91 crore) for sales related to earlier years.

** Generation segment result would have been Rs 16,769.88 crore (31 March 2016: Rs 15,855.68 crore) without including the sales related to earlier years.

*** Includes (-) Rs 0.73 crore (31 March 2016: Rs 4.48 crore) towards impairment loss/(reversal) recognised in the profit or loss, in generation of energy segment.

The Company has not disclosed geographical segments as operations of the Company are mainly carried out within the country.

C. Information about major customers

Revenue from two major customers under ‘generation of energy' segment is Rs 8,556.66 crore (31 March 2016: Rs 8,631.32 crore) and Rs 8,214.91 crore (31 March 2016: Rs 6,632.01 crore) which is more than 10% of the Company's total revenues.

65. Financial Risk Management

The Company's principal financial liabilities comprise loans and borrowings in foreign as well as domestic currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include borrowings, trade & other receivables, and cash and short-term deposits that derive directly from its operations. The Company also holds equity investments and enter into derivative contracts such as forward contracts, options and swaps. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

The Company is exposed to the following risks from its use of financial instruments: - Credit risk - Liquidity risk - Market risk

This note presents information about the Company's exposure to each of the above risks, the Company's objectives, policies and processes for measuring and managing risk.

Risk Exposure arising from Measurement Management
Credit Risk Trade receivables, derivative financial instruments, financial assets measured at amortised cost and cash & cash equivalents. Ageing analysis Credit ratings Credit limits, letters of credit and diversification of bank deposits.
Liquidity risk Borrowings and other liabilities Rolling cash flows forecast Availability of committed credit lines and borrowing facilities
Market risk - Future commercial transactions Cash flow forecasting Forward foreign exchange contracts
– foreign currency risk - Recognised financial assets and liabilities not denominated in Indian rupee (Rs) Foreign currency options
Currency & interest rate swaps and principal only swaps
Market risk –interest rate risk Long-term borrowings at variable rates Sensitivity analysis Different kinds of loan arrangements with varied terms (eg. fixed, floating, rupee, foreign currency, etc.)

Risk management framework

The Company's activities make it susceptible to various risks. The Company has taken adequate measures to address such concerns by developing adequate systems and practices.

In order to institutionalize the risk manag ement in the Company, an elaborate Enterprise Risk Management (ERM) framework has been developed. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. As a part of the implementation of ERM framework, a ‘Risk Management Committee (RMC)' with functional directors as its members has been entrusted with the responsibility to identify and review the risks, formulate action plans and strategies to mitigate risks on short term as well as long term basis. The RMC meets every quarter to deliberate on strategies. Risks are regularly monitored through reporting of key performance indicators. Outcomes of RMC are submitted for information of the Board of Directors.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade receivables

The Company primarily sells electricity to bulk customers comprising mainly state utilities owned by State Governments. The Company has a robust payment security mechanism in the form of Letters of Credit (LC) backed by the Tri-Partite Agreement (TPA). The TPA were signed among the Govt. of India, RBI and the individual State Governments subsequent to the issuance of the One Time Settlement Scheme of SEBs dues during 2001-02 by the GOI, which was valid till October 2016. Govt of India has approved the extension of these TPAs for another period of 10 years. Most of the States have signed these TPAs and signing is in progress for the balance states.

CERC Tariff Regulations allow payment against monthly bill towards energy charges within a period of sixty days from the date of bill and levy of surcharge @ 18% p.a. on delayed payment beyond sixty days.

A default occurs when in the view of management there is no significant possibility of recovery of receivables after considering all available options for recovery.

As per the provisions of the TPA, the customers are required to establish LC covering 105% of the average monthly billing of the Company for last 12 months. The TPA also provided that if there is any default in payment of current dues by any State Utility the outstanding dues can be deducted from the State's RBI account and paid to the concerned CPSU. There is also provision of regulation of power by the Company in case of non payment of dues and non-establishment of LC.

These payment security mechanisms have served the Company well over the years. The Company has not experienced any significant impairment losses in respect of trade receivables in the past years. Since the Company has its power stations as well as customers spread over various states of India, geographically there is no concentration of credit risk.

Investments

The Company limits its exposure to credit risk by investing in only Government of India Securities, State Government Securities and other counterparties have a high credit rating. The management actively monitors the interest rate and maturity period of these investments. The Company does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Loans

The Company has given loans to employees, subsidiaries and other parties. Loans to the employee are secured against the mortgage of the house properties and hypothecation of vehicles for which such loans have been given in line with the policies of the Company. The loan provided to group companies are collectible in full and risk of default is negligible. Loan to APIIC is secured by a guarantee given by the Government of Andhra Pradesh vide GO dated 3 April 2003.

Cash and cash equivalents

The Company held cash and cash equivalents of Rs 157.12 crore (31 March 2016: Rs 1,372.40 crore, 1 April 2015: 280.65 crore). The cash and cash equivalents are held with banks with high rating.

Deposits with banks and financial institutions

The Company held deposits with banks and financial institutions of Rs 2,773.37 crore (31 March 2016: Rs 3,088.38 crore, 1 April 2015: Rs 12,994.35 crore). In order to manage the risk, Company places deposits with only high rated banks/ institutions.

(i) Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Financial assets for which loss allowance is measured using 12 months Expected Credit Losses (ECL)
Non-current investments 113.48 79.60 98.48
Non-current loans 530.59 440.93 468.46
Other non-current financial assets 1,164.26 1,022.19 981.48
Current investments - 378.72 1,983.34
Cash and cash equivalents 157.12 1,372.40 280.65
Bank balances other than cash and cash equivallents 2,773.37 3,088.38 12,994.35
Current loans 236.92 251.78 272.63
Other current financial assets 6,053.32 5,246.03 2,930.38
11,029.06 11,880.03 20,009.77
Financial assets for which loss allowance is measured using Life time Expected Credit Losses (ECL)
Trade receivables 8,173.51 7,803.40 7,604.37
Total 19,202.57 19,683.43 27,614.14

(ii) Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Accordingly, no loss allowance for impairment has been recognised.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers (State government utilities) with capacity to meet the obligations and therefore the risk of default is negligible or nil. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in respect of trade receivables.

(iii) Ageing analysis of trade receivables

The ageing analysis of the trade receivables is as below:

Rs Crore
Ageing Not due 0-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due More than 120 days past due Total
Gross carrying amount as 31.3.2017 6,620.03 600.79 244.61 386.85 160.11 161.12 8,173.51
Gross carrying amount as 31.3.2016 6,581.25 806.24 164.22 108.44 126.59 16.66 7,803.40
Gross carrying amount as 01.4.2015 7,002.36 246.40 137.65 128.02 3.90 86.04 7,604.37

(iv) Reconciliation of impairment loss provisions

The movement in the allowance for impairment in respect of financial assets during the year was as follows:

Rs Crore
Particulars Trade receivables Advances Claims recoverable Total
Balance as at 1 April 2015 0.20 0.04 0.62 0.86
Impairment loss recognised - - - -
Amounts written off - - 0.08 0.08
Balance as at 31 March 2016 0.20 0.04 0.54 0.78
Impairment loss recognised - - - -
Amounts written off - - 0.42 0.42
Balance as at 31 March, 2017 0.20 0.04 0.12 0.36

Based on historic default rates, the Company believes that no impairment allowance is necessary in respect of any other assets as the amounts are insignificant.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The Company has an appropriate liquidity risk management framework for the management of short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company's treasury department is responsible for managing the short term and long term liquidity requirements of the Company. Short term liquidity situation is reviewed daily by Treasury Department. The Board of Directors has established policies to manage liquidity risk and the Company's treasury department operates in line with such policies. Any breaches of these policies are reported to the Board of Directors. Long term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

Typically, the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a month, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

As part of the CERC regulations, tariff inter-alia includes recovery of capital cost. The tariff regulations also provide for recovery of fuel cost, operations and maintenance expenses and interest on normative working capital requirements. Since billing to the customers are generally on a monthly basis, the Company maintains sufficient liquidity to service financial obligations and to meet its operational requirements.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Fixed-rate borrowings
Bank overdraft - 1,000.00 -
Foreign currency loans 297.74 918.85 1,404.42
Floating-rate borrowings
Bank overdraft 2,000.00 875.00 200.00
Term loans 8,615.00 17,160.00 21,110.00
Foreign currency loans 88.84 338.92 456.58
Total 11,001.58 20,292.77 23,171.00

(ii) Maturities of financial liabilities

The following are the contractual maturities of derivative and non-derivative financial liabilities, based on contractual cash flows:

31 March 2017 Rs Crore
Contractual maturities of financial liabilities Contractual cash flows
3 months or less 3-12 months 1-2 years 2-5 years More than 5 years Total
Non-derivative financial liabilities
Secured bonds 496.03 958.60 2,209.00 4,518.50 26,334.83 34,516.96
Rupee term loans from banks 218.48 1,919.57 2,009.89 7,135.72 18,695.80 29,979.46
Rupee term loans from others 460.94 947.70 1,183.38 2,695.57 2,853.44 8,141.03
Finance lease obligations 5.02 20.57 25.59 80.07 430.21 561.46
Foreign currency notes 49.93 163.92 - 5,286.50 13,384.50 18,884.85
Unsecured foreign currency loans from banks and financial institutions 656.17 1,581.40 1,154.21 5,279.17 2,586.08 11,257.03
Unsecured foreign currency loans (guaranteed by GOI) - 173.78 171.32 517.75 1,236.32 2,099.17
Commercial paper & cash credit 3,000.56 - - - - 3,000.56
Trade and other payables 14,207.07 2,187.11 1,846.07 664.44 4.06 18,908.75
Derivative financial liabilities
Full currency swaps - 16.62 15.36 14.10 - 46.08
31 March 2016 Rs Crore
Contractual maturities of financial liabilities Contractual cash flows
3 months or less 3-12 months 1-2 years 2-5 years More than 5 years Total
Non-derivative financial liabilities
Secured bonds 357.40 758.04 650.00 5,533.00 18,661.83 25,960.27
Rupee term loans from banks 197.46 2,426.61 2,675.78 7,016.85 15,996.73 28,313.43
Rupee term loans from others 477.86 1,124.95 1,359.38 2,980.42 3,751.98 9,694.59
Finance lease obligations 5.37 20.66 26.03 76.10 407.76 535.92
Foreign currency notes 50.81 54.07 - - 13,380.00 13,484.88
Unsecured foreign currency loans from banks and financial institutions 652.43 1,196.30 2,143.47 5,311.59 3,364.30 12,668.09
Unsecured foreign currency loans (guaranteed by GOI) - 176.80 172.61 524.21 1,429.96 2,303.58
Cash credit 1,299.50 - - - - 1,299.50
Trade and other payables 14,268.53 982.06 1,964.58 1,418.91 5.02 18,639.10
Derivative financial liabilities
Full currency swaps - 17.74 17.74 31.65 - 67.13
1 April 2015 Rs Crore
Contractual maturities of financial liabilities Contractual cash flows
3 months or less 3-12 months 1-2 years 2-5 years More than 5 years Total
Non-derivative financial liabilities
Secured bonds 362.30 684.87 628.00 4,641.00 17,748.83 24,065.00
Rupee term loans from banks 180.05 2,402.27 2,523.89 7,280.87 11,031.08 23,418.16
Rupee term loans from others 513.98 1,164.46 1,584.38 3,591.28 6,742.99 13,597.09
Finance lease obligations 3.87 15.04 18.91 77.34 338.73 453.89
Foreign currency notes 48.00 1,942.68 - - 9,478.50 11,469.18
Unsecured foreign currency loans from banks and financial institutions 134.65 584.84 1,666.58 5,525.19 3,931.49 11,842.75
Unsecured foreign currency loans (guaranteed by GOI) - 156.26 152.36 460.45 1,416.81 2,185.88
Trade and other payables 13,548.95 648.06 152.77 2,465.52 10.56 16,825.86
Derivative financial liabilities
Full currency swaps - 15.96 15.96 44.52 - 76.44

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. All such transactions are carried out within the guidelines set by the risk management committee.

Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other than entity's functional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates.

The currency profile of financial assets and financial liabilities as at 31 March 2017, 31 March 2016 and 1 April 2015 are as below:

31 March 2017 Rs Crore
Particulars USD EURO JPY Others Total
Financial assets
Trade and other receivables 0.18 - - 0.32 0.50
Cash and cash equivalents 1.45 - - 0.44 1.89
Other financial assets 4.49 1.81 0.10 0.62 7.02
6.12 1.81 0.10 1.38 9.41
Financial liabilities
Foreign currency bonds 13,249.05 3,541.16 - 2,094.64* 18,884.85
Unsecured foreign currency loans from banks and financial institutions 9,096.54 1,808.42 2,497.32 - 13,402.28
Trade payables and other financial liabilities 2,163.43 845.61 69.12 10.02 3,088.18
24,509.02 6,195.19 2,566.44 2,104.66 35,375.31

* Rs 2,000.00 crore - Rs denominated USD settled Green Masala Bonds.

31 March 2016 Rs Crore
Particulars USD EURO JPY Others Total
Financial assets
Trade and other receivables 1.75 - - 0.83 2.58
Cash and cash equivalents 1.55 - - 0.01 1.56
Other financial assets - - - 0.05 0.05
3.30 - - 0.89 4.19
Financial liabilities
Foreign currency bonds 13,484.88 - - - 13,484.88
Unsecured foreign currency loans from banks and financial institutions 10,470.74 1,817.78 2,750.28 - 15,038.80
Trade payables and other financial liabilities 1,833.73 811.69 31.12 16.50 2,693.04
25,789.35 2,629.47 2,781.40 16.50 31,216.72
1 April 2015 Rs Crore
Particulars USD EURO JPY Others Total
Financial assets
Trade and other receivables 1.70 - - 0.73 2.43
Cash and cash equivalents 1.41 - - 0.03 1.44
3.11 - - 0.76 3.87
Financial liabilities
Foreign currency bonds 11,469.18 - - - 11,469.18
Unsecured foreign currency loans from banks and financial institutions 10,100.88 1,418.58 2,585.61 - 14,105.07
Trade payables and other financial liabilities 2,388.58 629.38 67.65 17.48 3,103.09
23,958.64 2,047.96 2,653.26 17.48 28,677.34

Sensitivity analysis

As per the CERC regulations, the gain/loss on account of exchange rate variations on all long term and short term foreign currency monetary items (up to COD) is recoverable from beneficiaries. Hence, the impact of strengthening or weakening of Indian rupee against USD, Euro, JPY and other currencies on the statement of profit and loss would not be very significant. Therefore, sensitivity analysis for currency risk is not disclosed.

Interest rate risk

The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (eg. fixed, floating, rupee, foreign currency, etc.).

At the reporting date the interest rate profile of the Company's interest-bearing financial instruments is as follows:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Financial Assets:
Investments - Bonds - 35.09 1,756.74
Loans to related parties 154.97 2.42 4.04
Loans to others 55.34 106.10 156.35
Bank deposits 2,751.09 4,369.00 12,998.06
Total 2,961.40 4,512.61 14,915.19
Financial Liabilities:
Fixed-rate instruments
Bonds 34,513.63 25,958.36 24,065.00
Foreign currency loans/notes 24,685.77* 19,523.41 16,834.89
Rupee term loans 983.15 1,666.50 2,349.00
Commercial paper and cash credit 3,000.56 1,299.50 -
Finance lease obligations 145.02 140.37 103.46
63,328.13 48,588.14 43,352.35
Variable-rate instruments
Foreign currency loans/notes 7,535.66 8,972.85 8,739.36
Rupee term loans 37,137.34 36,341.52 34,666.25
44,673.00 45,314.37 43,405.61
Total 108,001.13 93,902.51 86,757.96

* Includes Rs 2000.00 crore - Rs denominated USD settled Green Masala Bonds

Fair value sensitivity analysis for fixed-rate instruments

The Company's fixed rate instruments are carried at amortised cost. They are therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A change of 50 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed on the same basis for the previous year.

Rs Crore
Particulars Profit or loss
50 bp increase 50 bp decrease
31 March 2017
Foreign currency loans/notes (36.89) 36.89
Rupee term loans (158.89) 158.89
(195.78) 195.78
31 March 2016
Foreign currency loans/notes (44.35) 44.35
Rupee term loans (165.80) 165.80
(210.15) 210.15

Of the above mentioned increase in the interest expense, an amount of Rs 111.69 crore (31 March 2016: Rs 118.07 crore) is expected to be capitalised and recovered from beneficiaries.

66. Fair Value Measurements

a) Financial instruments by category

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
FVTPL FVTOCI Amortised FVTPL FVTOCI Amortised FVTPL FVTOCI Amortised
Cost Cost Cost
Financial assets
Investments
- Equity instruments 1.40 112.08 - 2.80 76.80 - 1.40 97.08 -
- Bonds - - - - - 35.09 - - 1,756.74
- Mutual funds - - - 343.63 - - 226.60 - -
Trade Receivables - - 8,173.51 - - 7,803.40 - - 7,604.37
Loans - - 767.51 - - 692.71 - - 741.09
Cash and cash equivalents - - 157.12 - - 1,372.40 - - 280.65
Other bank balances - - 2,773.37 - - 3,088.38 - - 12,994.35
Finance lease receivables - - 555.06 - - 540.32 - - 539.92
Derivative financial assets - - - 3.66 - - - - -
Other financial assets - - 6,662.52 - - 5,724.24 - - 3,371.94
1.40 112.08 19,089.09 350.09 76.80 19,256.54 228.00 97.08 27,289.06
Financial liabilities
Borrowings - - 104,855.55 - - 92,462.64 - - 86,654.51
Commercial paper and cash credit - - 3,000.56 - - 1,299.50 - - -
Finance lease obligations - - 145.02 - - 140.37 - - 103.46
Trade payables - - 4,889.25 - - 5,320.01 - - 5,956.62
Payable for capital expenditure - - 11,578.01 - - 10,560.74 - - 8,633.42
Derivative financial liabilities 1.60 - - 0.04 - - 4.59 - -
Other financial liabilities - - 2,185.63 - - 2,377.45 - - 1,819.58
1.60 - 126,654.02 0.04 - 112,160.71 4.59 - 103,167.59

b) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Rs Crore
Financial assets and liabilities measured at fair value- recurring fair value measurement Level 1 Level 2 Level 3 Total
As at 31 March 2017
Financial assets:
Investments in quoted equity instruments - PTC India Ltd. 112.08 - - 112.08
Investments in unquoted equity instruments - - 1.40 1.40
112.08 - 1.40 113.48
Financial liabilities:
Derivative financial liabilities:
- Currency and interest rate swaps - - 0.12 0.12
- Principal only swaps - - 1.48 1.48
- - 1.60 1.60
Rs Crore
Financial assets and liabilities measured at fair value Level 1 Level 2 Level 3 Total
As at 31 March 2016
Financial assets:
Investments in quoted equity instruments - PTC India Ltd. 76.80 - - 76.80
Investments in unquoted equity instruments - - 2.80 2.80
Investments in mutual funds - 343.63 - 343.63
Derivative financial assets:
- Currency and interest rate swaps - - - -
- Principal only swaps - - 3.66 3.66
76.80 343.63 6.46 426.89
Financial liabilities:
Derivative financial liabilities:
- Currency and interest rate swaps - - 0.04 0.04
- Principal only swaps - - - -
- - 0.04 0.04
Rs Crore
Financial assets and liabilities measured at fair value Level 1 Level 2 Level 3 Total
As at 1 April 2015
Financial assets:
Investments in quoted equity instruments - PTC India Ltd. 97.08 - - 97.08
Investments in unquoted equity instruments - - 1.40 1.40
Investments in mutual funds - 226.60 - 226.60
Derivative financial assets:
- Currency and interest rate swaps - - - -
- Principal only swaps - - - -
97.08 226.60 1.40 325.08
Financial liabilities:
Derivative financial liabilities:
- Currency and interest rate swaps - - 1.15 1.15
- Principal only swaps - - 3.44 3.44
- - 4.59 4.59

The Company has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for overseeing all significant fair value measurements and reports directly to the Director (Finance). The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified. Significant valuation issues are reported to the Company's Audit Committee. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes investments in quoted equity instruments. Quoted equity instruments are valued using quoted prices on national stock exchange.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. This level includes mutual funds which are valued using the closing NAV.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments. This level includes derivative MTM assets/liabilities. Fair value of derivative assets/liabilities such as Interest rate swaps and foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models & present value calculations.

There have been no transfers in either direction for the years ended 31 March 2017, 2016 and 2015.

c) Valuation technique used to determine fair value:

Specific valuation techniques used to fair value of financial instruments include:

i) For financial instruments other than at ii), iii) and iv) - the use of quoted market prices

ii) For investments in mutual funds - Closing NAV is used.

iii) For financial liabilities (vendor liabilities, debentures, foreign currency notes, domestic/foreign currency loans):- Discounted cash flow; appropriate market borrowing rate of the entity as of each balance sheet date used for discounting.

iv) For financial assets (employee loans) - Discounted cash flow; appropriate market rate (SBI lending rate) as of each balance sheet date used for discounting.

d) Fair value of financial assets and liabilities measured at amortised cost

Rs Crore
Particulars Level 31 March 2017 31 March 2016 1 April 2015
Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value
Financial assets
Loans 3 767.51 670.74 692.71 574.96 741.09 618.57
Finance lease receivables 3 555.06 555.06 540.32 540.32 539.92 539.92
Claims recoverable 3 638.97 638.97 510.99 510.99 466.28 466.28
Trade receivables 3 35.59 35.59 71.18 71.18 - -
1,997.13 1,900.36 1,815.20 1,697.45 1,747.29 1,624.77
Financial liabilities
Bonds/Debentures 1 4,727.09 4,735.64 - - 11,556.65 11,785.21
2 22,655.40 24,510.07 25,571.53 27,102.13 12,508.35 13,707.95
3 7,131.14 7,797.27 386.83 400.38 - -
Foreign currency notes 1 - - - - 3,197.51 3,651.74
2 13,223.72 14,152.08 13,457.46 14,540.79 6,367.00 6,827.73
3 5,595.43 5,848.55 - - 1,904.67 1,985.15
Foreign currency loans 3 13,402.28 13,646.82 15,038.80 15,362.60 14,105.07 14,332.05
Rupee term loans 3 38,120.49 38,137.70 38,008.02 38,031.14 37,015.26 37,056.35
Trade payables & payable for capital expenditure 3 2,012.94 1,812.03 2,642.88 2,337.51 2,215.16 1,885.67
Other financial liabilities 3 247.36 247.36 364.76 364.76 2.03 2.03
107,115.85 110,887.52 95,470.28 98,139.31 88,871.70 91,233.88

The carrying amounts of short term trade receivables, trade payables, capital creditors, investment in bonds, cash and cash equivalents and other financial assets and liabilities are considered to be the same as their fair values, due to their short-term nature.

The carrying values for finance lease receivables approximates the fair value as these are periodically evaluated based on credit worthiness of customer and allowance for estimated losses is recorded based on this evaluation. Also, carrying amount of claims recoverable approximates its fair value as these are recoverable immediately. The fair values for loans, borrowings, non-current trade payables and capital creditors were calculated based on cash flows discounted using a current discount rate. They are classified at respective levels based on availability of quoted prices and inclusion of observable/non observable inputs.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

67. Capital Management

The Company's objectives when managing capital are to:

- safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and

- maintain an appropriate capital structure of debt and equity.

The Board of Directors has the primary responsibility to maintain a strong capital base and reduce the cost of capital through prudent management in deployment of funds and sourcing by leveraging opportunities in domestic and international financial markets so as to maintain investors, creditors & markets' confidence and to sustain future development of the business. The Board of Directors monitors the return on capital, which the Company defines as result from operating activities divided by total shareholders' equity. The Board of Directors also monitors the level of dividends to equity shareholders.

Under the terms of major borrowing facilities, the Company is required to comply with the following financial covenants:

(i) Total liability to networth ranges between 2:1 to 3:1.

(ii) Ratio of EBITDA to interest expense shall not at any time be less than 1.75 : 1

(iii) Debt service coverage ratio not less than 1.25:1 and account receivable ratio not exceeding 3:1 (in case of foreign currency borrowings) There have been no breaches in the financial covenants of any interest bearing borrowings.

The Company monitors capital, using a medium term view of three to five years, on the basis of a number of financial ratios generally used by industry and by the rating agencies. The Company is not subject to externally imposed capital requirements.

The Company monitors capital using gearing ratio which is net debt divided by total equity. Net debt comprises of long term and short term borrowings less cash and cash equivalent. Equity includes equity share capital and reserves that are managed as capital. The gearing ratio at the end of the reporting period was as follows:

Rs Crore
Particulars 31 March 2017 31 March 2016 1 April 2015
Borrowings 108,001.13 93,902.51 86,757.97
Less: Cash and cash equivalent 157.12 1,372.40 280.65
Net Debt 107,844.01 92,530.11 86,477.32
Total Equity 96,231.23 91,293.70 83,830.10
Net Debt to Equity ratio 1.12 1.01 1.03

68. Disclosure as per Ind AS 114, ‘Regulatory Deferral Accounts' (i) Nature of rate regulated activities

The Company is mainly engaged in generation and sale of electricity. The price to be charged by the Company for electricity sold to its customers is determined by the CERC which provides extensive guidance on the principles and methodologies for determination of the tariff for the purpose of sale of electricity. The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return. This form of rate regulation is known as cost-of-service regulations which provide the Company to recover its costs of providing the goods or services plus a fair return.

The Company is eligible to apply Ind AS 114, Regulatory Deferral Accounts. The standard permits an eligible entity to continue previous GAAP (Guidance Note on accounting for Rate Regulated Activities) accounting policy for its regulatory deferral account balances. Hence, Company has opted to continue with its previous GAAP accounting policy for such balances.

(ii) Recognition and measurement

As per the CERC Tariff Regulations, any gain or loss on account of exchange risk variation during the construction period shall form part of the capital cost till the declaration of Commercial Operation Date (COD) to be considered for calculation of tariff. The CERC during the past period in tariff orders for various stations has allowed exchange differences incurred during the construction period in the capital cost. Accordingly, exchange difference arising during the construction period is within the scope of Ind AS 114.

In view of the above, exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as ‘Regulatory deferral account debit/credit balance' by credit/debit to ‘Movements in Regulatory deferral account balances' during construction period and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries.

Revision of pay scales of employees of PSEs are due w.e.f. 1 January 2017 (Refer Note 33). The recommendations of the constituted committee to the Government inter-alia includes superannuation benefits @ 30% of basic + DA to be provided to the employees of CPSEs which includes gratuity at the enhanced ceiling of Rs 0.20 crore and the enhanced amount from Rs 0.10 crore to 0.20 crore will be borne by the Company. As per Proviso 8(3) of Terms and Conditions of Tariff Regulations 2014 applicable for the period 2014-19, truing up exercise in respect of Change in Law or compliance of existing law will be taken up by CERC. The proposed increase in gratuity from Rs 0.10 crore to Rs 0.20 crore falls under the category of ‘Change in law'.

CERC Tariff Regulations provide truing up of capital expenditure, subject to prudence check, considering inter-alia change in laws. Considering the methodology followed by the CERC in the previous pay revision and the provisions of CERC Tariff Regulations, 2014, a regulatory asset has been created (Regulatory deferral account debit balance) towards the increase in O&M expenditure due to the pay revision. This will be claimed upon implementation of revision of pay scales and discharge of related liabilities.

(iii) Risks associated with future recovery/reversal of regulatory deferral account balances:

(i) demand risk due to changes in consumer attitudes, the availability of alternative sources of supply

(ii) regulatory risk on account of submission or approval of a rate-setting application or the entity's assessment of the expected future regulatory actions (iii) other risks including currency or other market risks, if any

(iv) Reconciliation of the carrying amounts:

The regulated assets/liability recognized in the books to be recovered from or payable to beneficiaries in future periods are as follows:

a) Regulatory deferral account credit balance - Note 36

Rs Crore
Particulars 31 March 2017 31 March 2016
A. Opening balance 295.65 307.74
B. Addition during the year 193.38 (8.45)
C. Amount collected/refunded during the year 6.29 3.64
D. Regulatory deferral account balances recognized in the Statement of Profit & Loss (B-C) 187.09 (12.09)
E. Closing balance (A+D) 482.74 295.65

b) Regulatory deferral account debit balance - Note 20

The regulated assets/liability recognized in the books to be recovered from or payable to beneficiaries in future periods are as follows:

Rs Crore
Particulars 31 March 2017 31 March 2016
A. Opening balance - -
B. Addition during the year 522.83 -
C. Amount collected/refunded during the year - -
D. Regulatory deferral account balances recognized in the Statement of Profit & Loss (B-C) 522.83 -
E. Closing balance (A+D) 522.83 -
c) Total amount recognized in the Statement of Profit & Loss during the year 335.74 12.09

The Company expects to recover the carrying amount of regulatory deferral account debit balance over a period of 4-5 years.

69. Information in respect of micro and small enterprises as at 31 March 2017 as required by Micro, Small and Medium Enterprises Development Act, 2006

Rs Crore
Particulars 31 March 31 March 1 April 2015
2017 2016
a) Amount remaining unpaid to any supplier:
Principal amount 347.87 174.77 89.06
Interest due thereon 0.11 0.09 0.13
b) Amount of interest paid in terms of Section 16 of the MSMED Act along-with the amount paid to the suppliers beyond the appointed day. - 0.01 0.02
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 the MSMED Act. 0.01 0.09 0.01
d) Amount of interest accrued and remaining unpaid 0.01 0.05 0.07
e) Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues as above are actually paid to the small enterprises, for the purpose of disallowances as a deductible expenditure under Section 23 of MSMED Act - - -

70. Disclosure as required by Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015:

A. Loans and advances in the nature of loans:

1. To Subsidiary Companies

Rs Crore
Name of the company Outstanding balance as at Maximum amount outstanding during
31 March 2017 31 March 2016 1 April 2015 31 March 2017 31 March 2016 1 April 2015
Kanti Bijlee Utpadan Nigam Ltd. 121.00 1.71 3.43 121.86 3.43 8.00
Patratu Vidyut Utpadan Nigam Ltd. 33.25 - - 33.25 - -

2. To Firms/companies in which directors are interested : Nil

B. Investment by the loanee (as detailed above) in the shares of NTPC : Nil

71. Contingent liabilities and commitments

A. Contingent liabilities a. Claims against the company not acknowledged as debts

(i) Capital works

Some of the contractors for supply and installation of equipments and execution of works at our projects have lodged claims on the Company for Rs 12,753.91 crore (31 March 2016: Rs 8,768.55 crore, 1 April 2015: Rs 7,660.88 crore) seeking enhancement of the contract price, revision of work schedule with price escalation, compensation for the extended period of work, idle charges etc. These claims are being contested by the Company as being not admissible in terms of the provisions of the respective contracts. The Company is pursuing various options under the dispute resolution mechanism available in the contracts for settlement of these claims. It is not practicable to make a realistic estimate of the outflow of resources if any, for settlement of such claims pending resolution.

(ii) Land compensation cases

In respect of land acquired for the projects, the erstwhile land owners have claimed higher compensation before various authorities/courts which are yet to be settled. Against such cases, contingent liability of

349.31 crore (31 March 2016: Rs 332.34 crore & 1 April 2015: Rs 312.37 crore) has been estimated.

(iii) Fuel suppliers

a) Pending resolution of the issues with the coal companies, an amount of Rs 2,570.55 crore (31 March 2016: Rs 1,646.17 crore, 1 April 2015: Rs Nil) towards grade slippage pursuant to third party sampling has been estimated by the Company as contingent liability. Further, an amount of Rs 661.50 crore (31 March 2016: Rs 209.89 crore, 1 April 2015: Rs 567.22 crore) towards surface transportation charges, custom duty on service margin on imported coal etc. has been estimated by the Company as contingent liability. b) Pending resolution of the issues with a fuel company for supply of RLNG, an amount of Rs 4,173.57 crore (31 March 2016: Rs 323.87 crore, 1 April 2015: Rs Nil) towards the take or pay claim has been estimated by the Company as contingent liability.

The Company is pursuing with the fuel companies, related ministries and other options under the dispute resolution mechanism available for settlement of these claims.

(iv) Others

In respect of claims made by various State/Central Government departments/Authorities towards building permission fee, penalty on diversion of agricultural land to non-agricultural use, non agricultural land assessment tax, water royalty, other claims, etc. and by others, contingent liability of Rs 253.15 crore (31 March 2016: Rs 312.94 crore, 1 April 2015: Rs 896.34 crore) has been estimated.

(v) Possible reimbursement

The contingent liabilities referred to in (i) above, include an amount of Rs 919.33 crore (31 March 2016: 1,298.80 crore, 1 April 2015: Rs 1,172.56 crore) relating to the hydro power project stated in Note 10 (a) - Other financial assets, for which Company envisages possible reimbursement from the GOI in full. In respect of balance claims included in (i) and in respect of the claims mentioned at (ii) above, payments, if any, by the Company on settlement of the claims would be eligible for inclusion in the capital cost for the purpose of determination of tariff as per CERC Tariff Regulations subject to prudence check by the CERC. In case of (iii), the estimated possible reimbursement by way of recovery through tariff as per Regulations is Rs 7,373.54 crore (31 March 2016: Rs 2,051.77 crore, 1 April 2015: Rs 423.36 crore).

b. Disputed tax matters

Disputed income tax/Sales tax/Excise and other tax matters pending before various Appellate Authorities amount to Rs 6,934.90 crore (31 March 2016: Rs 7,499.37 crore, 1 April 2015: Rs 4,161.87 crore). Many of these matters were adjudicated in favour of the Company but are disputed before higher authorities by the concerned departments. In respect of these disputed cases, the Company estimate possible reimbursement of Rs 3,302.47 crore (31 March 2016: Rs 3,602.24 crore, 1 April 2015: Rs 1,508.46 crore). The amount paid under dispute/adjusted by the authorities in respect of the cases amounts to Rs 6,499.22 crore (31 March 2016: 6,548.66 crore, 1 April 2015: Rs 3,254.52 crore).

c. Others

Other contingent liabilities amount to Rs 213.92 crore (31 March 2016: Rs 164.55 crore, 1 April 2015: Rs 309.36 crore).

Some of the beneficiaries have filed appeals against the tariff orders of the CERC. The amount of contingent liability in this regard is not ascertainable.

B. Contingent assets

While determining the tariff for some of the Company's power stations, CERC has disallowed certain capital expenditure incurred by the Company. The Company aggrieved over such issues has filed appeals with the Appellate Tribunal for Electricity (APTEL)/Hon'ble Supreme Court against the tariff orders issued by the CERC. Based on past experience, the Company believes that a favourable outcome is probable. However, it is impracticable to estimate the financial effect of the same as its receipt is dependent on the outcome of the judgement.

C. Commitments

a) Estimated amount of contracts remaining to be executed on capital account (property, plant & equipment and intangible assets) and not provided for as at 31 March 2017 is Rs 48,607.62 crore (31 March 2016: 55,449.01 crore, 1 April 2015: Rs 58,398.91 crore). Details of the same are as under:

Rs Crore
31.03.2017 31.03.2016 01.04.2015
Property, plant & equipment 48,401.83 55,109.78 58,158.71
Intangible assets 205.79 339.23 240.20

b) In respect of investments of Rs 2,418.01 crore (31 March 2016: Rs 1,910.35 crore, 1 April 2015: Rs 1,822.61 crore) in subsidiary Companies, the Company has restrictions for their disposal as at 31 March 2017 as under:

Rs Crore
Amount invested
Name of the Subsidiary Period of restrictions for disposal of investments as per related agreements 31 March 2017 31 March 2016 1 April 2015
Bhartiya Rail Bijlee Company Ltd. 5 years from the date of commercial operation. 1,420.54 1,188.25 1,172.61
Kanti Bijlee Utpadan Nigam Ltd. 5 years from the date of commercial operation. Further, as per loan agreement, minimum equity of 51% shall be maintained at all times untill final settlement of loan i.e., 4 years moratorium period and subsequently 11 years for repayment. 962.89 721.02 650.00
Patratu Vidyut Utpadan Nigam Ltd. 5 years from the date of signing of agreement or till the date of commercial operation of the last new unit of Phase-I, whichever is later. 34.58 1.08 -
Total 2,418.01 1,910.35 1,822.61

c) In respect of investments of Rs 2,785.99 crore (31 March 2016: Rs 1,794.94 crore, 1 April 2015: Rs 1,692.48 crore) in the joint venture entities, the Company has restrictions for their disposal as at 31 March 2017 as under:

Rs Crore
Name of the Joint Venture Company Period of restrictions for disposal of investments as per related agreements Amount invested
31 March 2017 31 March 2016 1 April 2015
Pan-Asian Renewables Private Ltd. 2 years from the date of commercial operation of the project having minimum capacity of 100 MW of renewable energy project or 5 years from the date of incorporation (i.e.14.10.2011) whichever is earlier. Also refer Note 6 (g). - - 1.50
Name of the Joint Venture Company Period of restrictions for disposal of investments as per related agreements Amount invested
31 March 2017 31 March 2016 1 April 2015
NTPC-SCCL Global Ventures Private Ltd. 5 years from the date of incorporation (i.e. 31.07.2007) or commercial operation whichever is later. Also refer Note 6 (b). - - 0.05
National Power Exchange Ltd. 5 years from the date of commencement of business i.e trading operation or Company issues shares to public at large (IPO) whichever is earlier. Also refer Note 6 (e). - - 2.19
Transformers and Electricals Kerala Ltd. 3 years from the date of acquisition (i.e.19.06.2009) or upgradation capacity enhancement scheme whichever is later. Also refer Note 6 (f). 31.34 31.34 31.34
NTPC BHEL Power Projects Private Ltd. 3 years from the date of completion of first EPC contract of single order value of not less than 500 crore or till further such time as mutually agreed. Also refer Note 6 (c). 50.00 50.00 50.00
National High Power Test Laboratory Private Ltd. 5 years from the date of incorporation (i.e. 22.05.2009) or completion of project whichever is later. 30.40 23.90 23.90
CIL NTPC Urja Private Ltd. 5 years from the date of incorporation (i.e. 27.04.2010) or commercial operation whichever is later. 0.08 0.08 0.08
Trincomalee Power Company Ltd. 12 years from the initial operation date. 15.20 15.20 9.26
Bangladesh- India Friendship Power Company Private Ltd. 15 years from the date of commercial operation date. 134.20 69.68 31.43
Meja Urja Nigam Private Ltd. 5 years from the date of incorporation (i.e. 02.04.2008) or commercial operation whichever is later. Further, NTPC shall hold atleast 50% of equity and voting rights until final settlement of loan i.e., 5 years moratorium period and subsequently 10 years for repayment. 1,166.44 841.44 541.35
Name of the Joint Venture Company Period of restrictions for disposal of investments as per related agreements Amount invested
31 March 2017 31 March 2016 1 April 2015
Nabinagar Power Generating Company Private Ltd. 5 years from the date of incorporation (09.09.2008) or commercial operation whichever is later. Further, NTPC shall not transfer/assign or pledge shares of the JV until final settlement of loan i.e. 5 years moratorium and subsequently 15 years for repayment. 1,353.30 763.30 511.13
NTPC-SAIL Power Company Ltd. (formerly NTPC-SAIL Power Company Private Ltd.) 3 years from the date of allotment (last allotment made on 30.09.2012) - - 490.25
Hindustan Urvarak and Rasayan Ltd. 5 years from the date of incorporation or 2 years from commercial operation date of any one of the proposed projects at Sindri, Gorakhpur and Barauni or date of allottment of shares for first time, whichever is later. 5.03 - -
Total 2,785.99 1,794.94 1,692.48

d) In respect of other investments of Rs 1.40 crore (31 March 2016: Rs 5.14 crore, 1 April 2015: Rs 1.40 crore), the Company has restrictions for their disposal as at 31 March 2017 as under:

Rs Crore

Name of the Company Period of restrictions for disposal of investments as per related agreements Amount invested
31 March 2017 31 March 2016 1 April 2015
Pan-Asian Renewables Private Ltd. 2 years from the date of commercial operation of the project having minimum capacity of 100 MW of renewable energy project or 5 years from the date of incorporation (i.e.14.10.2011) whichever is earlier. Also refer Note 6 (g). - 1.50 -
NTPC-SCCL Global Ventures Private Ltd. 5 years from the date of incorporation (i.e. 31.07.2007) or commercial operation whichever is later. Also refer Note 6 (b). - 0.05 -
National Power Exchange Ltd. 5 years from the date of commencement of business i.e trading operation or Company issues shares to public at large (IPO) whichever is earlier. Also refer Note 6 (e). - 2.19 -
Name of the Company Period of restrictions for disposal of investments as per related agreements Amount invested
31 March 2017 31 March 2016 1 April 2015
International Coal Ventures Private Ltd. 5 years from the date of incorporation (i.e. 20.05.2009) or till such time an undertaking for non-disposal of such share is given to FI/Banks for their assistance to the Company. Also refer Note 7(c). 1.40 1.40 1.40
Total 1.40 5.14 1.40

e) The Company has commitments of Rs 1,162.56 crore (31 March 2016: Rs 1,145.14 crore, 1 April 2015: Rs 131.82 crore) towards further investment in the subsidiary companies as at 31 March 2017.

f) The Company has commitments of Rs 3,082.90 crore (31 March 2016: Rs 2,759.91 crore, 1 April 2015: Rs 3,139.80 crore) towards further investment in the joint venture entities as at 31 March 2017.

g) The Company has commitments of Rs 498.60 crore (31 March 2016: Rs 498.60 crore, 1 April 2015: Rs 498.60 crore) towards further investment in other investments as at 31 March 2017.

h) The Company has commitments of bank guarantee of 0.50 % of total contract price to be undertaken by NTPC-BHEL Power Projects Private Ltd. to a cumulative amount of Rs 75.00 crore (31 March 2016: Rs 75.00 crore, 1 April: 2015: Rs 75.00 crore).

i) Company's commitment towards the minimum work programme in respect of oil exploration activity of Cambay Block (100% owned by the Company) is Rs Nil (31 March 2016: Rs 35.94 crore (USD 5.42 million), 1 April 2015: 140.27 crore (USD 22.41 million).

j) Company's commitment towards the minimum work programme in respect of oil exploration activities of joint venture operations has been disclosed in Note 63. k) S.O. 254 (E) dated 25 January 2016 issued by the Ministry of Environment, Forest and Climate Change (MOEF), GOI provides that the cost of transportation of ash for road construction projects or for manufacturing of ash based products or use as soil conditioner in agricultural activity within a radius of hundred kilometres from a coal based thermal power plant shall be borne by such coal based thermal power plant and the cost of transportation beyond the radius of hundred kilometres and up to three hundred kilometres shall be shared equally between the user and the coal based thermal power plant. Further, the coal or lignite based thermal power plants shall within a radius of three hundred kilometres bear the entire cost of transportation of ash to the site of road construction projects under Pradhan Mantri Gramin Sadak Yojna and asset creation programmes of the Government involving construction of buildings, road, dams and embankments. Accordingly, the Company has commitment to bear/share the cost of transportation of fly ash from its coal based stations on lifting of the fly ash by the users. Based on an independent expert opinion, the Company's obligation towards the transportation cost of fly ash will arise only on lifting & transportation of the fly ash. Further, the Company's liability on this account, if any shall be first met from the ‘Fly Ash Utilization Reserve Fund' maintained by the Company in terms of MOEF Notification dated 3 November 2009.

l) Company's commitment in respect of lease agreements has been disclosed in Note 55.

72. Corporate Social Responsibility Expenses (CSR)

As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, GOI, the Company is required to spend, in every financial year, at least two per cent of the average net profits of the Company made during the three immediately preceding financial years in accordance with its CSR Policy. The details of CSR expenses for the year are as under:

Particulars 31 March 2017 31 March 2016
A. Amount required to be spent during the year 227.85 271.35
B. Shortfall amount of previous year - 78.30
C. Total (A+B) 227.85 349.65
D. Amount spent during the year on:
- Construction/acquisition of any asset 4.46 1.96
- On purposes other than above 273.35 489.46
Total 277.81 491.42
Shortfall amount appropriated to CSR reserve - -

a) Amount spent during the year ended 31 March 2017:

Rs Crore
Particulars In cash Yet to be paid in cash Total
Construction/acquisition of any asset 4.44 0.02 4.46
On purposes other than above 250.31 23.04 273.35

b) Amount spent during the year ended 31 March 2016:

Rs Crore
Particulars In cash Yet to be paid in cash Total
Construction/acquisition of any asset 1.96 - 1.96
On purposes other than above 457.46 32.00 489.46

E. Break-up of the CSR expenses under major heads is as under:

Rs Crore
Particulars 31 March 2017 31 March 2016
1. Swachh vidyalaya abhiyan 35.73 278.32
2. Healthcare and sanitation 55.52 39.76
3. Education and skill development 60.45 54.49
4. Rural development 51.30 44.21
5. Environment 35.33 33.85
6. Drinking water 9.36 9.27
7. Sports 1.90 1.89
8. Capacity building 11.39 13.57
9. Protection of national heritage, art and culture 0.82 3.17
10. Other CSR activities 16.01 12.89
Total 277.81 491.42

73. Details of Specified Bank Notes (SBN) held and transacted during the period 8 November 2016 to 30 December 2016: Pursuant to MCA Notification No. GSR 308(E) dated 30 March 2017.

Particulars Specified Bank Notes Other denomination notes Total
Closing cash in hand as on 08.11.2016* 374,500.00 72,754.00 447,254.00
Add: Permitted receipts * - 9,222,260.00 9,222,260.00
Non permitted receipts** 3,944,500.00 - 3,944,500.00
Less: Permitted payments - - -
Less: Amount deposited in Banks 4,319,000.00 9,146,921.00 13,465,921.00
Closing cash in hand as on 30.12.2016* - 148,093.00 148,093.00

* Balance available and receipts at hospitals, guest houses etc. of the Company, as per separate records maintained at the respective projects/stations/offices.

** Includes an amount of Rs 30,99,500/- collected at hospitals & guest houses etc. situated at projects/stations of the Company which are mostly located in remote areas. The Company's hospitals usually have all modern health care facilities and there are no other good hospitals near the Company's projects/stations. The local residents, mostly villagers, vendors and executing contractors, avail health care facilities from these hospitals by paying nominal charges. Similarly, vendors visiting project/stations of the Company from outside places, use the guest house/ transit camp facilities of the Company for stay on payment. Further, employees of the Company have drawn imprest/staff advance prior to 8 November 2016 total amounting to Rs 8,45,000/- for meeting official expenditure, subsequently deposited the same in the Company's bank accounts. This disclosure has been added so as to arrive at the closing cash in hand as on 30 December 2016.

74. Recent accounting pronouncements Standards issued but not yet effective:

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'. The amendments are applicable to the Company from 1 April 2017.

The amendment to Ind AS 7 requires the entities to provide disclosures that 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.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

   

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