1 a) Cash credit limit from banks aggregating to Rs. 5000 crore
(previous year Rs. 5000 crore) and Company''s counter guarantee /
indemnity obligations in regard to bank guarantee / letters of credit
limit aggregating to Rs. 55000 Crore (previous year Rs. 55000 Crore)
sanctioned by the consortium banks are secured by first charge by way
of hypothecation of raw materials, components, work in progress,
finished goods, stores, trade receivables and other current assets both
present and future. The outstanding bank guarantees as at 31.03.2016 is
Rs. 45834 Crore (previous year Rs. 44915 Crore).
b) Corporate Guarantees outstanding as on 31.03.2016 is Rs. 3028.33
Crore (Previous year Rs. 2752.27 Crore).
2 Other payable/ liabilities include a sum of Rs. 100.51 Crore
(previous year Rs. 100.51 Crore) towards guarantee fee demanded by the
Government of India in respect of foreign currency loans taken by the
Company at the instance of the Government upto 1990-91. The matter for
its waiver has been taken up with the Government since there was no
stipulation for payment of such guarantee fee at the time the loans
(guaranteed by Government) were taken by the company. The Company vide
letter dated 09.02.2015 has again requested Department of Heavy
Industries (DHI) for waiver of the guarantee fee.
3 Amorphous Silicon Solar Cell Plant (ASSCP), Gurgaon was taken on
April 1, 1999 from Ministry of New and Renewable Energy (MNRE) on lease
for a period of 30 years The formal lease agreement with the Ministry
of New and Renewable Energy (MNRE) is yet to be finalised.
4 Balances shown under Trade Receivables, Long term Trade receivable,
Trade payables, contractors advances, deposits and stock/ materials
lying with sub-contractors/ fabricators are subject to confirmation,
reconciliation & consequential adjustment, if any. As the Company is in
the business of long term construction contracts, bills are raised on
the customers as per contract by the units located at various places as
per the approved billing schedule by the customer and the
reconciliation is carried out on ongoing basis & provisions made,
wherever considered necessary. Final reconciliation with customer is
being done on completion of project (Trial Operation and/ or PG Test
completed). The total receivables (including long term) are Rs. 42886
crs (including deferred debts & other debts of Rs. 20750 crs presently
not due for payment and Rs. 6002 crs outstanding in respect of
completed projects), out of which, the projects reconciled with
customers have outstanding debts of Rs. 3998 crs in respect of
5 The details of Research & Development Expenditure incurred during
the year which is eligible (other than land or building) of deduction
under section 35 (2AB) of the Income Tax Act. 1961.
6 The disclosure relating to derivative instruments:
a) The derivative instruments that are hedged and outstanding as on
31.03.2016 is Nil (previous year Nil).
b) The foreign currency exposures that are not hedged by a derivative
instrument or otherwise are as under :
7 The disclosure relating to AS-15 (R) – Employee Benefits
a) Gratuity Plan
The gratuity liability arises on account of future payments, which are
required to be made in the event of retirement, death in service or
withdrawal. The liability has been assessed using projected unit credit
Assumptions- Discounting rate 8.00% (prev. year 8.00%), Future salary
increase 8.25% for 1st four years & then 6% p.a. (prev. year 6.00%).,
Expected rate of return on plan assets 8.50% (prev. year 8.50%).
c) Long Term Leave Liability (EL/HPL)
The company provides for earned leave benefit and half pay leave to the
employees of the company which accrue half yearly at 15 days (maximum)
and 10 days respectively. The earned leave is encashable while in
service and upto a maximum of 300 days on retirement. Half pay leave is
encashable within 3 months prior to superannuation or on separation
beyond the age of 50 years subject to the overall ceiling of 480
days.The leave liability has been treated as other long term benefits
and has been assessed using projected unit credit actuarial method.
8 Related Party Transactions:
i) Related Parties where control exists (Joint Ventures):
Powerplant Performance Improvement Ltd. BHEL-GE Gas Turbine Services
Pvt. Ltd. NTPC-BHEL Power Projects Pvt. Ltd. Latur Power company Ltd.
Raichur Power Corporation Ltd. Dada Dhuniwale Khandwa Power Ltd.
ii) Other related parties (Key Management Personnel- Functional
Directors: existing & retired and Company Secretary):
CMD : Shri Atul Sobti (w.e.f. 01.01.2016) , Shri B.P.Rao (upto
31.12.2015) Functional Directors : S/Shri P. K. Bajpai (upto
31.05.2015) , R Krishnan (upto 31.07.2015) , W V K krishnashankar (upto
31.08.2015), T.N.Veeraraghavan (upto 30.06.2015), D. Bandyopadhyay
(w.e.f. 01.08.2015), Amitabh Mathur (w.e.f. 01.09.2015), S. Biswas
(w.e.f. 24.09.2015), T. Chockalingam (w.e.f. 11.02.2016) & Company
Secretary : Shri IP Singh
9 Joint Ventures
Pursuant to compliance of Accounting Standard-27 issued by the
Institute of Chartered Accountants of India, relevant disclosures
relating to Joint ventures are as follows:
10 Assets and Liabilities are classified between Current and
Non-current considering 12 months period as operating Cycle.
11 Item of expense and income less than Rs. one Lakh are not considered
for booking under Prior Period Items.
12 There are net outstanding debts of Rs. 2139 crs (after adjustment of
advances) pertaining to 31 projects on hold due to various reasons like
environment clearance, fuel linkage, land acquisition, fund
constraints, force majeure, hold imposed by BHEL due to strategic
reasons etc. FG/ WIP of Rs. 967 crs is also lying in these projects.
Provision of Rs. 1069 crs for outstanding debts and Rs. 120 crs for
inventory has been made during the year for these projects in line with
the guidelines formulated in this regard.
13 Previous year''s figures have been regrouped/ rearranged wherever