To the Members of NHPC Limited,
The Directors have immense pleasure in presenting the 36th Annual
Report on the performance of your Company, along with the Audited
Statement of Accounts, Auditors'' Report and the Review of Accounts by
the Comptroller & Auditor General of India for the financial year ended
31st March 2012.
1. FINANCIAL RESULTS
The financial results for the year ended 31st March 2012 are summarized
in Table 1.
Table 1 FINANCIAL HIGHLIGHTS
(Rs. in crore)
Particulars 2011-12 2010-11
Sales 5509.65 4046.59
Profit before Depreciation,
Interest and Tax 4752.02 4160.75
Depreciation 892.74 916.74
Profit after Depreciation but
before Interest and Tax 3859.28 3244.01
Interest and Finance Charges 342.24 366.60
Profit after Depreciation and
Interest but before Tax 3517.04 2877.41
Tax 745.27 710.74
Profit after Depreciation,
Interest and Tax 2771.77 2166.67
Surplus of Profit and Loss Account
of earlier years 4336.18 3150.50
Amount written back from Bond
Redemption Reserve 14.25 14.25
Amount written back from Self-
Insurance Reserve - 0.04
Tax on Dividend—written back 3.25 1.80
Balance available for appropriation 7125.45 5333.26
Transfer to Bond Redemption Reserve 129.13 100.00
Transfer to Self-Insurance Fund 32.48 39.31
Proposed Final Dividend 861.06* 738.04
Tax on Proposed Dividend 139.68 119.73
Balance carried over to Reserves
and Surplus 5963.10 4336.18
* including rounding off difference of Rs. 0.01 crore of last year.
2. POWER GENERATION
NHPC''s 12 operating power stations, located in different parts of the
country generated 18,683 MUs of power during 2011-12 exceeding the
annual MoU target of 18,500 MUs for an ''Excellent'' rating by 183 MUs.
The power generation in 2011-12 was higher by 0.42 per cent as compared
to the previous year.
In addition to above, all the three units of Chamera-III, H.E Project
231 MW (77x3) in Himachal Pradesh have started commercial operations
w.e.f. 4th July, 2012. With the commissioning of Chamera-III Project,
the installed capacity of NHPC has gone up to 5526 MW including 1520 MW
through our subsidiary i.e. NHDC Limited.
3. PROPOSED DIVIDEND
Your Directors have recommended a highest ever dividend of Re. 0.70 per
share (excluding dividend tax) for the year 2011-12. The dividend will
be paid after your approval at the forthcoming Annual General meeting.
The total dividend payout for the year amounts to Rs. 861.05 crore
representing 31.06 per cent of profits after tax.
4. CAPITAL STRUCTURE
Your Company''s paid up capital remained at Rs. 12,300.74 crore during the
year. The net-worth of the Company has increased to Rs. 26,353.53 crore
as on 31st March 2012 as compared to Rs. 24,583.89 crore at the end of
5. STATUS OF ONGOING PROJECTS
During the year under report, your Company had to face many challenges
like geological obstacles, natural calamities and loca problems. But
despite all these challenges construction continued at a brisk pace and
the projects are in various stages of completion. During the year
2011-12, your Company was engaged in the construction of 10
hydroelectric projects with an installed capacity of 4,502 MW as per
the details given in Table 2. Five projects viz. — Teesta Low Dam-III,
Nimoo Bazgo, Chutak, Uri-II and Parbati-III are in advanced stages of
completion and are likely to be commissioned in the year 2012-13. The
work at Subansiri Lower HE Project (2000MW) in Arunachal Pradesh has
suffered due to local agitation w.e.f. December, 2011. However at
present the pace of work is gearing up and contractors have started
Table 2: Details of hydroelectric projects under construction during
Project State Proposed Installed
Teesta Low Dam-III West Bengal 132
Uri-II Jammu and Kashmir 240
Chamera-III Himachal Pradesh 231**
Teesta Low Dam-IV West Bengal 160
Nimmo Bazgo Jammu and Kashmir 45
Parbati-III Himachal Pradesh 520
Parbati–II Himachal Pradesh 800
Chutak Jammu and Kashmir 44*
Subansiri Lower Assam/ Arunachal
Kishanganga Jammu and Kashmir 330
Note: * Two units (22 MW) of Chutak HEP (44 MW) in J&K were
synchronized during financial year 2011-12.
** All the three units of Chamera-III, H.E Project 231 MW (77x3) in
Himachal Pradesh have started commercial operations w.e.f. 4th July,
6. COMMERCIAL PERFORMANCE
Your Company''s commercial performance during the year 2011-12 was
highly satisfactory. The sales realization during the year was Rs. 4,415
crore as against Rs. 3,619 crore in the previous year. The bills
amounting to Rs. 6,101crore (including arrear bills ofRs. 2605.40 crore
against revision of tariff, tax etc. for the previous years) were
raised as against the bills of Rs. 3,553 crore in the previous year.
Tariff orders for the period 2009-14 have been issued by CERC in
respect of 12 Power Stations.
The outstanding dues pending for more than 60 days as on 31st March,
2012 were Rs. 1176.02 crores. Your company has made all out efforts to
recover the outstanding dues, including regulation of power supply to
the defaulting utilities. Most of the beneficiary states are now
liquidating their dues in installments.
7. PROJECT MANAGEMENT
An online Project Monitoring Centre has been set up at the Corporate
Office to support video conferencing and to provide live video feeds
from cameras installed at strategic locations in projects under
construction. This will facilitate an analysis of physical progress.
8. NEW SCHEMES
Details of projects which are under clearance/approval stages are given
in Table 3.
As a part of its future expansion programme, five projects of your
Company with a capacity of 5,115 MW are under various stages of
approval. In addition to these five projects, new projects with a
capacity of 3,686 MW are to be executed through JVCs with State
Table 3: Projects under Clearance/Approval UNDER NHPC STAND ALONE
No. Name of the Project Capacity (MW)
1 Kotli Bhel I-A, Uttarakhand 195
2 Teesta-IV, Sikkim 520
3 Dibang, Arunachal Pradesh 3,000
4 Tawang-I, Arunachal Pradesh 600
5 Tawang-II, Arunachal Pradesh 800
Total 5,115 MW
PROJECTS TO BE EXECUTED THROUGH JOINT VENTURES
6 Loktak Downstream, Manipur 66
7 Pakal Dul and others, Jammu & Kashmir 2,120
8 Tipaimukh, Manipur 1,500
Total 3,686 MW
Grand Total 8,801 MW
Detailed Project Reports (DPRs) for all these projects have been
prepared and a majority of them have also been approved by the
competent authorities. Environmental and Forest Clearances are awaited
for some of these projects. Construction activity will start once
NHPC/JVCs get these approvals.
A promoter''s agreement for setting up a Joint Venture Company (JVC)
involving NHPC Limited, SJVN Limited and the Government of Manipur for
implementing the Tipaimukh hydroelectric project in Manipur was signed
in October 2011, in the presence of Shri Sushil Kumar Shinde, Hon''ble
Union Minister of Power, Government of India (GoI) and Shri Okram Ibobi
Singh, Hon''ble Chief Minister of Manipur.
JVCs for Loktak Downstream HE Project in Manipur and Pakul Dul HE
Project in J&K have already been incorporated.
Ministry of Environment and Forests (MoEF) has declined permission for
diversion of forest land to two projects viz. Kotli Bhel Stage- 1B (320
MW) and Kotli Bhel Stage-II (530 MW) in Uttarakhand (not in table).
Further, environment clearance accorded to Kotli
Bhel-IB was also withdrawn by MoEF subsequent to which NHPC has filed a
civil appeal before the Hon''ble Supreme Court of India.
9. PROJECTS UNDER DPR/FR PREPARATION
Your Company is in the process of preparing DPRs, Feasibility Reports
(FRs) and Survey & Investigation for projects which are presently under
various stages of clearance. The details are given in Table 4.
Table 4: DPRs, FRs and Survey & Investigation
No. Projects Capacity (MW)
1 Bursar, J&K 1,020
2 Chungar Chal, Uttarakhand 240
3 Garba Tawaghat, Uttarakhand 630
4 Karmoli Lumti Tulli,
5 Lachen, Sikkim 210
Total 2,155 MW
10. CONSULTANCY & BUSINESS DEVELOPMENT SERVICES
NHPC''s major consultancy assignments include those from Central and
State Government agencies in India and in neighboring countries like
Bhutan, Myanmar and Tajikistan. These consultancy services are in
various hydropower fields like river basin studies, survey work, design
and engineering, geological studies, geotechnical studies, hydraulic
transient studies, hydrological studies, contract management,
construction management, equipment planning, underground construction,
testing and commissioning and operation & maintenance. So far your
Company has completed 84 consultancy assignments while another 18
assignments are under progress. Your Company is registered with the
World Bank, the Asian Development Bank, the African Development Bank,
Kuwait Fund for Arab Economic Development and the Central Water
Commission as a consultant in the area of hydropower.
Your Company is also making efforts to start unallocated hydro projects
with state governments through joint ventures.
11. GLOBAL INITIATIVES
Under the ''Action Plan'' on India-Bhutan cooperation for hydropower
development of 10,000 MW by 2020, NHPC has been entrusted with the
preparation of DPRs for Chamkharchhu-I H.E. Project (770 MW) and for
preparing PFRs of Kuri Gongri Reservoir projects in Bhutan. The draft
DPR for Chamkharchhu-I H.E. Project (770 MW) was submitted to the Royal
Government of Bhutan (RGoB) and Government of India (GoI) in March
2012. The draft PFR for the Kuri Gongri Basin projects was also
submitted to RGoB/ GoI in May 2012.
Your Company has also signed an agreement with the Mangdechhu
Hydroelectric Project Authority for providing engineering and design
consultancy services for the construction of the Mangdechhu H.E.
Project (720 MW) in Bhutan. It also undertook the following assignments
to provide consultancy services:
- Investigations and preparation of updated DPRs for the 1,200 MW
Tamanthi and 642 MW Shwezaye, Hydropower & Multipurpose projects in
Myanmar, as a consultancy assignment from the Ministry of External
Affairs (MEA), Government of ndia. The final report for the Tamanthi
Hydropower & Multipurpose Project was submitted to the Ministry of
External Affairs, Government of India and to the Government of Myanmar.
- RMU works of Varzob-I H.E. Project in Tajikistan has been entrusted
to NHPC under a tripartite agreement signed amongst MEA, BHEL and NHPC.
- Technical due diligence study of the Shiroro Hydroelectric Power
Station in Nigeria for M/s Dangote Industries Limited.
12. RGGVY - RURAL ELECTRIFICATION (RE) PROJECTS
Your Company is implementing Rural Electrification Projects under the
Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) in 27 districts spread
over five states of West Bengal, Bihar, Jammu & Kashmir, Chhattisgarh
and Odisha at an estimated cost of Rs. 2,900 crore. The scope of work
includes electrification of Unelectrified/De-electrified (UE/DE)
villages, Partially Electrified (PE) villages and service connections
to Below Poverty Line (BPL) households.
During 2011-12, NHPC electrified 460 UE/DE villages and provided
connections to 1.9 lakh BPL households. In addition to above
electrification of 2,020 PE villages were also completed.
As on 31st March 2012, the cumulative achievements for UE/DE villages,
PE villages and BPL connections were 9,092, 16,439 and 18.2 lakh
13. RURAL ROADS PROJECT
Your Company has signed a MoU with the Ministry of Rural Development,
Government of India and the Government of Bihar for constructing rural
roads in six districts in the state under the Pradhan Mantri Gram Sadak
Yojana (PMGSY) in the year 2004. These roads will be maintained by NHPC
for five years.
Under the scheme, 762 roads of 3,242.58 km at a cost ofRs. 1,763.49 crore
have been cleared by the Ministry of Rural Development, Government of
India. As on 31st March 2012, 566 roads of 2,701.24 km had been
14. INFORMATION TECHNOLOGY & COMMUNICATION (IT & C)
After implementation of all modules of ERP, the key functions of the
organization have now been totally IT enabled and seamlessly integrated
with a major focus on the management of projects under construction and
also the operation and maintenance of power stations.
The IT & C infrastructure was upgraded at over 50 locations to support
increased dependence on information technology. All the locations are
connected with the Corporate Office through multi-mode, fail-safe
communication links using MPLS-VPN (OFC) and the VSAT based satellite
network. Applications such as Intranet, Internet, e-mail and ERP are
being run to leverage this network.
Your Company also launched e-procurement initiatives at all locations
to bring about efficiency, transparency and cost reduction in
procurement of works, goods and services as per Government of India
guidelines. Necessary IT security measures have also been put in place
to ensure security of all information assets of the organization.
A policy framework has been created for managing the IT systems and
assets so that these are optimally used in a secure manner.
15. TRAINING & HUMAN RESOURCE DEVELOPMENT
As a part of its commitment to training and development, your Company
has set up training centres at various power stations. The training
programmes are designed and conducted on existing and upcoming
technologies in the power sector. It has also developed learning
ventures with leading educational institutions in the country for skill
and knowledge enrichment of all sections of its employees. Strategic
alliances have been made with IIMs/XLRI/IITs etc. for advance
management and leadership development programmes for NHPC employees.
16. EMPLOYEE RELATIONS
During the year, industrial relations were cordial and harmonious at
all NHPC projects/stations/units. However, at some locations workmen
participated in a one day nationwide token strike called by the Central
Trade Workers Union to raise their demands though no power generation
17. RESEARCH & DEVELOPMENT
Your Company attaches special attention to Research and Development
(R&D) activities to bring in innovations and improvements in its areas
of operation. Specific areas in which R&D was carried out include:
- Techniques to stop seepage in reservoirs/structures.
- Development of a hard coating facility for which the DPR has been
- Computational fluid dynamics analysis of fluid flowing through the
surge and pressure shafts of the Teesta-V Power Station and
Dam-Spillway of Subansiri H.E. Project.
- A National Perspective Plan (NPP) for R&D projects—''Development of
Silt erosion resistant material for turbine of hydro generators''.
- Undertaking NPP projects sponsored by CPRI for R&D in ''Tunneling in
water charged zones under high hydrostatic pressure''.
18. CLEAN DEVELOPMENT MECHANISM (CDM) BENEFITS
Carbon credits are expected from NHPCs registered projects under CDM
Nimoo Bazgo (3X15 MW) and Chutak (4X11 MW) projects located in Jammu &
Kashmir have been registered with the CDM Executive Board of the United
Nations Framework Convention on Climate Change (UNFCCC). These projects
will annually reduce emissions of 1,87,893 and 1,66,831 Metric Tons of
CO2 equivalent respectively on their commissioning.
Carbon credits are also expected under the Verified Emission Reductions
(VERs) scheme from projects/power stations like Teesta-V.
19. REHABILITATION & RESETTLEMENT
NHPC formulated its own Rehabilitation & Resettlement (R&R) policy-2007
in line with the National Rehabilitation and Resettlement Policy
(NRRP), 2007 in consultation with various stakeholders. The Company''s
policy provides for certain additional benefits over and above those
proposed in NRRP, 2007. Your Company''s policy aims to address issues
like loss of land, houses, other resources and means of livelihood or
social support systems, which Project Affected Families (PAFs) are
likely to suffer due to the construction of a project. Major emphasis
is laid on economic sustenance of PAFs. As per NHPCs R&R policy, up to
0.75 per cent of the hard cost of a project is earmarked towards
Community and Social Development Plan (CSDP) for implementation in the
resettlement zone and affected areas.
Further, to implement NHPCs R&R policy in its true spirit, an
operational manual for effective implementation of various R&R
activities has also been formulated.
20. STRATEGIC DIVERSIFICATION
NHPC Limited, a leading company in the Indian hydropower sector, has 14
per cent of the total hydro installed capacity to its credit. During
2011-12, NHPC generated 18,683 MUs of power, which is the highest ever
generation since the Company''s inception. Apart from hydro, NHPC also
has plans to expand in the areas of thermal and renewable energy.
21. FINANCING OF NEW PROJECTS
As per the Central Electricity Regularity Commission''s guidelines,
projects need to be financed with a debt to equity ratio of 70:30 for
the purposes of tariff fixation. Your Directors believe that internal
accruals of your Company will be sufficient to finance the equity
component of new projects. Due to its low gearing and strong credit
ratings, It is well positioned to raise the required borrowings.
The equity component is being funded through IPO proceeds/internal
Company is exploring domestic as well as international borrowing
options including overseas development assistance provided by bilateral
agencies to mobilize the debt required for the planned capacity
22. SUSTAINABLE DEVELOPMENT POLICY
From 2010-11, the Department of Public Enterprises (DPE) has included
Sustainable Development (SD) as a compulsory element for CPSEs under
''Non-Financial Parameters'' in MOU for evaluation of performance of the
Company. DPE had issued Guidelines on Sustainable Development in
September 2011. The main purpose of this policy is to remove any
ambiguities and bring in uniformity in the process of sustainable
development by specifying the mandate and scope of activities to be
performed by CPSEs. NHPC has formulated its own SD policy in line with
DPE''s guidelines on Sustainable Development.
During 2011-12, NHPC carried out rehabilitation/rejuvenation of dumping
sites at Parbati-III HE project and Parbati–II HE project in Himachal
Pradesh by way of slope stabilization and plantation, as an initiative
towards Sustainable Development. A DPR for the development of a wind
power project in Bidda area near the Salal Power Station in J&K was
carried out and a feasibility report also prepared for the installation
of wind power monitoring stations at Parbati–II, Parbati-III and
Chamera-I projects in Himacha Pradesh and the Nimmo Bazgo Project in
During 2011-12, more than one lakh saplings were planted at NHPCs
various project sites under the afforestation drive.
23. VIGILANCE ACTIVITIES
Regular and surprise inspections were conducted by the vigilance
department at regular intervals. Actionable points identified by
Project Vigilance Officers were conveyed to the heads of the projects
from time to time for implementing necessary corrections. An intensive
examination of the works under progress was also carried out by CVC''s
Chief Technical Examiner (CTE) from time to time. An integrity pact
was implemented successfully for all procurement works which have a
value of more than Rs. 15 crore and for procurement of goods and services
which have a value of more than Rs. 25 lakh as per CVC guidelines.
Emphasis is laid on preventive vigilance by issuing circulars and
guidelines based on inspections/intensive examinations. Various
vigilance awareness programmes and vigilance awareness week were also
organized to promote transparency and ethics in the working system. Two
workshops for Vigilance Officers were organized during the year under
report in order to review and improve their functioning.
24. IMPLEMENTATION OF THE FRAUD PREVENTION POLICY
The fraud prevention policy has been formulated and implemented in your
25. OFFICIAL LANGUAGE IMPLEMENTATION
Your Company complied with the provisions and rules of the Official
Language Act. During the year, sincere efforts were made to increase
the progressive use of the official language in accordance with the
policy of the Government of India.
The Parliament sub-committee on official language carried out
inspections in Andaman & Nicobar Islands and Salal and has appreciated
its implementation. Rajbhasha inspections were conducted in the
departments of the Corporate Office and at power
Regular quarterly meetings of the Official Language Implementation
Committee were organized at the Corporate Office. During 2011-12, the
All India Official Language Conference was inaugurated by a renowned
writer, Dr. Narender Mohan. An All India Kavi Sammelan was also
organized in the NCUI auditorium in which renowned Hindi poets
including Padambhushan Dr. Gopal Das Neeraj, recited poems.
Various incentive schemes were introduced to encourage the use of Hindi
in the Company.
Your Company has been conferred with the highest award Indira Gandhi
Rajbhasha Shield Yojna by the Government of India for the second
consecutive year. The award for the year was received from Hon''ble
President of India, Smt. Pratibha Devi Singh Patil. First prize for
the award Rajbhasha shield and Citation for the year 2010-11 under
the NTPC Rajbhasha shield yojna for outstanding work in implementation
of Rajbhasha among Power Sector was also received from Hon''ble Union
Minister of Power, Shri. Sushilkumar Shinde.
26. PR INITIATIVES/AWARENESS ACTIVITIES
Your Company''s achievements were appropriately highlighted through
print and electronic media throughout the country, creating awareness
among the public about the strengths and capabilities of NHPC in
Your Company has been participating in various exhibitions both in
India and abroad and also in sports related activities under the aegis
of the Power Sports Control Board, Ministry of Power. During 2011-12,
NHPC successfully hosted the 16th Inter-CPSU Bridge and 17th Inter-CPSU
Chess tournaments at Faridabad.
Corporate films on NHPC and a film on environment were screened on a
number of platforms.
The bi-monthly ''NHPC NEWS'' and the monthly communiqué continued to be
effective tools for internal communication.
As a part of its attempts for propagating ''Energy Conservation Day
2011'', NHPC coordinated a painting competition for school children
organized by the Bureau of Energy Efficiency (BEE), Ministry of Power
at the national and state levels.
27. AWARDS AND RECOGNITION
NHPC received various prestigious awards. Some of these are:
- The AMITY Corporate Excellence Award for Innovative Training & HR
Practices'' by AMITY International Business School, NOIDA.
- The ''India Power Award 2011'' for the ''largest Hydropower Developer
(Public Sector)'' at the India Power Awards held on 24th November, 2011.
- ''Prashansa Patra'' at the ''NSCI Safety Awards - 2010'' instituted by
the National Safety Council on 19th October 2011.
- The ''PSE Excellence Award 2011'' in the Miniratna and other category
for ''Best Human Resource Management''.
- The Best Performing Generation Company (Hydro) in Power Line Awards
2012 from Shri Sushil Kumar Shinde, Hon''ble Union Minister of Power.
28. CORPORATE SOCIAL RESPONSIBILITY
The focus of NHPC''s Corporate Social Responsibility (CSR) initiative
was on rural India and backward districts of hill states like J&K,
Himachal Pradesh, Sikkim, Uttarakhand, Arunachal Pradesh and Assam.
With its continued commitment towards CSR and ethical behaviour, NHPC
contributed to the economic development and improvements in the quality
of life of internal as well as external stakeholders and of society at
large. NHPC through its expansive CSR initiatives strives to develop
mutual trust with the communities that surround its power
stations/projects across the country. NHPC has adopted a structured
scheme on CSR in line with DPE guidelines w.e.f. 2010-11. During
2011-12, a budget of 0.5 per cent of PAT was allocated to CSR
activities which was subsequently increased to 1% of PAT and the target
for the activities will be set accordingly. NHPC undertook a number of
community development Initiatives and spent about Rs. 10 crore in the
Various skill developments/vocational training and other programmes
were organized during financial year 2011-12 to improve the skills and
employment opportunities of the people in areas surrounding
More than 800 SC/ST students studying in schools near power
stations/projects/townships in the states of J&K, Himachal Pradesh,
Uttarakhand and Sikkim and in the north-eastern region of our country
were provided scholarships during 2011-12 with the vision that this
financial support will light up the lives of these young scholars and
play an important part in realizing their dreams. Study material like
books, stationery, school bags and school uniforms/sweaters/shoes were
distributed among poor and needy students around the Dulhasti Power
Station, the Tanakpur Power Station and the Teesta-V Power Station.
Bicycles were also given to a number of girl students studying in
colleges and schools in the vicinity of the Subansiri Lower Project
amounting to Rs. 4.39 lakh.
A large number of immunization programmes and medical check-ups were
organized for children studying in schools near NHPC''s projects and
power stations. Besides these, regular health camps focusing women,
children, disabled and old age persons were also organized across the
northern and eastern regions.
NHPC has always been in the forefront in times of national emergencies.
It has helped the victims of natural calamities and contributed to
various relief and rehabilitation measures. Your Company had organized
relief and rehabilitation work in the areas devastated by earthquake in
Sikkim. It also promoted rural sports and organized annual sports meets
in the villages by providing both equipment and other facilities. It
also organized a veterinary camp for cattle stock. As part of its
environment protection initiatives, special thrust was placed on
community plantation and forestry programmes around all its
29. CORPORATE GOVERNANCE
A separate statement on Corporate Governance is enclosed as a part of
the Directors'' Report along with the Certificate for Compliance as
Annexure–I and the Management Discussion and Analysis Report as
Annexure–II to this Report.
30. RIGHT TO INFORMATION ACT, 2005
In compliance with the provisions of the Right to Information Act,
2005, NHPC provided various information on its website during the year
under review. To enable nationwide access to this information,
Assistant Public Information Officers were appointed at each of the
power stations/projects/regional offices/units. All the applications
received under this Act were attended to and information furnished to
the applicants. Mr. S.K. Dubey, Chief Engineer, is designated as the
Central Public Information Officer.
31. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE
EARNINGS AND OUTGO
The information pertaining to conservation of energy, technology
absorption and foreign exchange earnings and outgo as required under
Section 217(1)(e) of the Companies Act, 1956 read with the Companies
(Disclosure of Particulars in the Report of the Board of Directors)
Rules, 1988 is given in Annexure-III and forms part of the Directors''
32. PARTICULARS OF EMPLOYEES
Under Section 217(2A) of the Companies Act, 1956 read with the
Companies (Particulars of Employees) Rules, 1975 as amended from time
to time, the information is set out in Annexure – IV to the Directors''
Report. The Company (excluding JVs and Subsidiaries) had 11,037
employees as on 31st March, 2012. No employee employed throughout the
year was in receipt of remuneration of more than Rs. 60 lakh per annum
and 167 employees employed for a part of the year were in receipt of
remuneration of more than Rs. 5 lakh per month.
33. STATUTORY AUDITORS
The Statutory Auditors of your Company are appointed by the Comptroller
& Auditor General of India. M/s S. N. Nanda & Co., M/s Singhi & Co.,
M/s Baweja and Kaul and M/s Tiwari & Associates were appointed as Joint
Statutory Auditors for financial year 2011-12.
34. AUDITORS'' REPORT
The Auditors'' Report refers to various notes incorporated by the
Company in note no. 14.1 and 35, which are self-explanatory. The report
of the Statutory Auditors with comments of the Comptroller & Auditor
General of India is enclosed as Annexure - V and VI respectively. The
consolidated Financial Statement of the Company along with the
Auditor''s Report is given in Annexure - VII.
35. COST AUDITORS
As prescribed under the Cost Accounting Records (Electricity Industry)
Rules, 2001, cost accounts are being maintained by all Stations of the
Company since 2002-03. The cost audit for 2011-12 is under process. The
following firms of Cost Auditors were appointed to conduct an audit of
cost accounting records of power stations indicated against each firm
for the financial year 2011- 12 under Section 233-B of the Companies
Name of the Firm Name of Power Station
M/s Ramnath Iyer & Co.,
New Delhi Uri-I Power Station & Dulhasti
M/s R.M. Bansal & Co.,
Kanpur(Uttar Pradesh) Sewa-II Power Station &
Chamera-I Power Station
M/s Chandra Wadhwa & Co.,
New Delhi Dhauliganga Power Station &
Tanakpur Power Station
M/s Krishan Singh Berk,
Faridabad (Haryana) Bairasiul Power Station &
Chamera- II Power Station
M/s D. Dutt & Associates,
Kolkata (West Bengal) Rangit Power Station &
Teesta-V Power Station
M/s R.J. Goel & Co., New Delhi Salal Power Station & Loktak
The Cost Audit report for which due date was 27.09.11 were filed for
the financial year 2010-11 as per details below.
S. Power Name of Cost Membership
No. Station Auditor No.
1. Uri-I K. L. Jaisingh and Co. 1222
2. Dulhasti K. L. Jaisingh and Co. 1222
3. Salal R. M. Bansal and Co. 3323
4. Chamera-I K. G. Goyal and 10884
5. Bairasiul Jugal K. Puri and 3703
6. Chamera-II Jugal K. Puri and 3703
7. Loktak D. Dutta & Associates 11633
8. Rangit D. Dutta & Associates 11633
9. Teesta-V R. M. Bansal and Co. 3323
10. Dhauliganga S. K. Adya & Co. 765
11. Tanakpur S. K. Adya & Co. 765
12. Sewa-II K. G. Goyal and 10884
S. Power Address Actual Date of filing
No. Station of Cost Audit Report
1. Uri-I J-7, Sector-XI,
2. Dulhasti J-7, Sector-XI,
3. Salal A-201, Twin Towers,
LakhanPur, Kanpur, 26/08/2011
4. Chamera-I 4-A, Pocket 2,Mix
Housing, New Kondli, 26/08/2011
Mayur Vihar III,
New Delhi – 110096
5. Bairasiul K 19 (GF), South
New Delhi 29/08/2011
6. Chamera-II K 19 (GF), South
New Delhi 29/08/2011
7. Loktak 58, Creek Row,
Kolkata – 700014 29/08/2011
8. Rangit 58, Creek Row,
Kolkata – 700014 29/08/2011
9. Teesta-V A-201, Twin Towers,
Lakhan Pur, Kanpur, 26/08/2011
10. Dhauliganga 1158/Sector-14,
11. Tanakpur 1158/Sector-14,
12. Sewa-II 4-A, Pocket 2,Mix
Housing, New Kondli, 26/08/2011
Mayur Vihar III, New
Delhi – 110096
36. CONSOLIDATED FINANCIAL STATEMENTS
In accordance with the Accounting Standard AS-21 on Consolidated
Financial Statements read with Accounting Standard AS-23 on Accounting
for Investments in Associates and AS-27 on Financial Reporting of
Interest in Joint Ventures, the Audited Consolidated Financial
Statements are provided in the Annual Report. A statement of the
Holding Company''s interest in the Subsidiary Company is annexed to the
37. SUBSIDIARY COMPANIES
Your Company has two Subsidiary Companies – NHDC Limited and Loktak
Downstream Hydroelectric Corporation Limited. Detailed information
about these Companies is given in the Management Discussion and
Analysis Report. The Annual Accounts along with the Auditors'' Report
and the Directors'' Report of NHDC Limited and Loktak Downstream
Hydroelectric Corporation Limited are not being attached with the
Balance Sheet of the Company. In accordance to the general circular
issued by the Ministry of Corporate Affairs, Government of India, any
shareholder interested in obtaining a copy of these reports related to
Subsidiary Companies may write to the Company Secretary at the
Company''s registered office. The information is also available on the
NHPC website www.nhpcindia.com.
The annual accounts of the Subsidiary will also be kept open for
inspection at the Registered Office of the Company and that of the
respective of Subsidiary Companies. The Consolidated Financial
Statements presented by the Company include the financial results of
The statement under Section 212 of the Companies Act, 1956 is annexed
to this report.
38. DIRECTORS'' RESPONSIBILITY STATEMENT
As required under Section 217 (2AA) of the Companies Act, 1956, the
Directors hereby confirm the following:
(i) In the preparation of the annual accounts, applicable accounting
standards were followed along with proper explanation relating to
(ii) The Directors selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and
prudent, so as to give a true and fair view of the state of affairs of
the Company at the end of the financial year and of the profit of the
Company for that period;
(iii) The Directors took proper and sufficient care for the maintenance
of adequate accounting records in accordance with the provisions of the
Companies Act, 1956 for safeguarding the assets of the Company and for
preventing and detecting fraud and other irregularities to the best of
their knowledge and ability; and
(iv) The Directors prepared the annual accounts on a going concern
39. BOARD OF DIRECTORS
The present composition of Directors is given in the Corporate
Since the last report the following Directors completed their tenures:
No. Name of the
Director Category of
Director Date of
1. Shri K.
Dharmarajan Independent Director 03.09.2011
2. Shri Sudhir Kumar Government Nominee
3. Shri Rakesh Jain Government Nominee
Since the last report following Directors joined the Board:
No. Name of the
Director Category of
Director Date of joining
1. Shri G. S. Vedi Independent Director 08.11.2011
2. Shri A. K. Mago Independent Director 09.11.2011
3. Shri R. Jeyaseelan Independent Director 12.11.2011
4. Shri G. Sai Prasad Government Nominee
5. Shri A. S. Bakshi Government Nominee
6. Shri Ashoke Kumar
Dutta Independent Director 30.03.2012
7. Shri Atul Kumar
Garg Independent Director 30.03.2012
8. Shri Shantikam
Hazarika Independent Director 24.05.2012
Your Directors would like to express their gratitude for the continued
support and guidance received from the different wings of the
Government of India, particularly from the Ministry of Power, the
Ministry of Finance, the Planning Commission, Ministry of Environment
and Forests, Department of Public Enterprises, Ministry of Corporate
Affairs, the CEA and CWC as well as State Governments, the Regional and
State Electricity Board, the beneficiaries drawing power from our power
stations as also our other valuable clients for consultancy
assignments. Thanks are also due to various international financing
institutions as well as Indian financial institutions, bankers, SEBI,
stock exchanges, lenders and investors at large for the confidence
reposed by them in NHPC. The Board also acknowledges and appreciates
the contributions made by contactors, vendors, consultants and others
for achieving the desired goals of the Company.
Your Directors acknowledge the suggestions received from Statutory
Auditors, Cost Auditors and the office of the Comptroller & Auditor
General of India and are grateful for their consistent support and
Your Directors would also like to place on record their deep and
sincere appreciation for the hard work, dedication and unstinting
efforts of your Company''s employees to ensure that your Company reaches
the pinnacle of success.
For and On behalf of the Board of Directors
(G. Sai Prasad)
Place: New Delhi Chairman and Managing Director
Date : 30.07.2012 DIN No.: 00325308