1 249,448,986 equity shares (249,322,865 equity shares as at 31st
March, 2011) of Rs. 10/- each fully paid up are held by holding company -
Torrent Private Limited.
2 Terms/ Rights attached to equity shares :
The Company has only one class of equity shares having par value of Rs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividends in Indian rupees. The
dividend proposed by the Board of Directors is subject to the approval
of the shareholders in the ensuing Annual General Meeting. Dividend
amount per share recognized as distributions to equity shareholders is
Rs. 6.50 per equity share during the year ended 31st March, 2012
(Previous year Rs. 5.50 per equity share).
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after distribution of preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders.
(Rs. in crores)
As at As at
31st March, 2012 31st March, 2011
3. Contingent liabilities not
provided for in respect of:
(i) Letters of credit established
and guarantees given by banks on
behalf of the Company 121.08 60.46
(ii) Disputed income-tax matters 21.04 23.45
(iii) Disputed sales-tax matters 0.02 0.21
(iv) Disputed custom duty matters 0.44 0.44
(v) Disputed stamp duty matters 0.37 0.26
4. Accounting policy concerning depreciation in respect of assets of
Ahmedabad Generation, Ahmedabad Distribution and Surat Distribution has
been changed during the year from higher of rates as per Appendix III
of CERC Regulation 2009 or rates prescribed under Schedule XIV to the
Companies Act 1956 to rates applicable in the year of addition as per
CERC Tariff Regulations in context of circular no. 51/23/2011-CL-III
dated 31st May, 2011issued by Ministry of Corporate Affairs with effect
from 1st April, 2011. Depreciation for the year is lower by Rs. 60.12
crores and profit for the year is higher by Rs. 60.12 crores on account
of such changes.
5. The Company has given loans and advances to its subsidiary
companies and associate company as under
(a) Other than above, the Company has not given any loans or advances
in the nature of loan to any of its subsidiaries and associates or
firms / companies, in which Directors are interested.
(b) There are no loans where either repayment schedule is not
prescribed or repayment is scheduled beyond seven years. Loans given to
above companies are interest free.
6. (i) The Company uses forward contracts to hedge its certain risk
associated with foreign currency fluctuation relating to firm
commitments. The Company does not use forward contracts for speculative
purposes. Outstanding foreign exchange contract as at 31st March, 2012
is Rs. Nil (Previous year Rs. 7.68 crores).
7. Based on the information available with the Company, the balance
due to Micro and Small Enterprises as defined under MSMED Act, 2006 is
Rs. 2.73 crores (Previous year Rs. 1.49 crores). Interest paid or payable
under MSMED Act, 2006 during the year is Rs. 0.03 crores (Previous year Rs.
8. Assets taken on lease under which all risks and rewards of
ownership are effectively retained by the lessor are classified as
operating lease. Lease payments under operating leases are recognised
as expenses on straight-line basis.
The Company''s significant leasing arrangements are in respect of
residential flats, office premises, plant and machinery and equipments
taken on lease. The arrangements range between 11 months and 10 years
generally and are usually renewable by mutual consent on mutually
agreeable terms. Under these arrangements, generally refundable
interest free deposits have been given. The Company has not entered
into any material financial lease. The Company does not have any
9. Employee benefits
The accounting liability on account of gratuity and leave is accounted
as per AS 15 (revised) dealing with Employee benefits.
The Company operates a defined benefit plan (the Gratuity Plan)
covering eligible employees, which provides a lump sum payment to
vested employees at retirement, death, incapacitation or termination of
employment, of an amount based on the respective employee''s salary and
tenure of employment.
10. The Company''s primary business segment is Generation and
Distribution of Electricity. Based on the guiding principles given in
Accounting Standard on Segment Reporting (AS-17), this activity falls
within a single primary business segment and accordingly the disclosure
requirements of AS-17 in this regard are not applicable.
11. Capitalization of exchange differences
The Ministry of Corporate Affairs (MCA) has issued the amendment dated
29th December 2011 to AS 11 The Effects of Changes in Foreign Exchange
Rates, to allow companies deferral / capitalization of exchange
differences arising on long-term foreign currency monetary items.
In accordance with the amendment to AS 11, the company has capitalized
exchange loss, arising on long-term foreign currency loan, amounting to
Rs. 23.07 crores (Previous year Rs. Nil) to the cost of Capital work in
progress / plant and equipments.
12. Previous year figures
The Company prepares and presents its financial statements as per
Schedule VI to the Companies Act, 1956, as applicable to it from time
to time. In view of revision to the Schedule VI as per a notification
issued during the year by the Central Government, the financial
statements for the financial year ended 31st March, 2012 have been
prepared as per the requirements of the Revised Schedule VI to the
Companies Act, 1956. The previous year figures have been accordingly
regrouped / re-classified to conform to the current year''s
classification. Figures are rounded off to nearest lakh. Figures below
Rs. 50000 are denoted by.