annual report 2010-2011 - Mahagenco

Annual Report 2010-2011
(viii) As stated in note no.16(a) of Schedule 15, the
balances in Sundry Debtors, Loans and Advances,
Deposits, Materials with subcontractors, Sundry
Creditors including retention money, liability for
supply of material, Intra group Companies
balances, ,Advances from customers, and advances
given to Coal Companies and provisions made
there against are subject to confirmation from
respective parties and / or reconciliation with
subsidiary records, as the case may be. Pending
such confirmation and completion of reconciliation,
the consequential adjustments could not be made.
In view of the same, we are unable to comment on
the consequential impact, if any, on the status of
these balances and the profits of the Company.
(ix) As stated in note no 16(b) of Schedule 15 the loans
and advances include `2793.06 Crores towards
advance paid to coal suppliers. Against the said
advance the Company has provided a liability
towards supply of coal amounting to Rs. 2659.05
Crores. Pending final passing of the bills, the
Company has not set off the said liability against
the advance paid. This has resulted in overstatement
of the respective assets and liabilities of the
Company. The impact of the above overstatement
and on the profit of the Company is not ascertained.
(x) The Company is in the process of identifying
suppliers under the provisions of Micro, Small and
Medium Enterprise Development Act, 2006.
Accordingly no disclosures as required therein have
been made.
The preparation of subsidiary ledgers in
respect of Sundry Debtors, Loans and
Advances, Deposits, Materials with
subcontractors, Sundry Creditors including
retention money, liability for supply of
material, Intra group Companies balances,
Advances from customers, and advances
given to Coal Companies, is in progress. At
certain accounting Units, the balance
confirmation letters have also been issued in
the name of concerned confirming parties.
Wherever despite diligent efforts the
balances are un-linkable being too old,
suitable action of write off / write back
would be taken so as to arrive at the clean
balances in respect of above.
The payment of advances to coal company
and their clearance is a regular phenomenon.
During previous year, the balance of coal
advance and liability were appearing inflated
due to non-clearance of Coal Stores receipt
note. However the exercise of clearance of
coal stores receipt notes has been undertaken
rigorously in FY 2010-11 and has resulted
in settlement of coal advances and coal
liabilities thereby bringing down the
advances and liabilities from the level of
`5500 Crs. to the level of `2700 Crs.
Maharashtra State Power Generation Co. Ltd.
(xi) Subject to our comments in Para 4(vii to x) above,
in our opinion and to the best of our information
and according to the explanations given to us, the
said accounts, read together with the notes thereon,
give the information required by the Companies
Act, 1956, in the manner so required and give a
true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of
affairs of the Company as at 31st March, 2011;
(b)
in the case of the Profit & Loss Account, of the
Profit for the year ended on that date; and
(c) in the case of the Cash Flow Statement, of the
Cash flows for the year ended on that date.
Factual.
Factual.
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