9th Annual report-English Final.indd - hescom

9th Annual Report2010-2011Hubli Electricity SupplyCompany Limited1 9th Annual Report 2010-11

Table of Contents1. Director’s Report .............................................................................................52. Auditor’s Report ............................................................................................473. Annexures to Audit Report and Replies ........................................................514. Comments of the C & AG of India.................................................................595. Balance Sheet ..............................................................................................606. Profi t and Loss Account ................................................................................627. Schedules Forming part of Balance Sheet ...................................................648. Schedules Forming part of Profi t and Loss Account ....................................929. Signifi cant Accounting Policies andNotes Forming part of Accounts .................................................................11410. Cash Flow Statment ..................................................................................12811. Balance Sheet Abstract &Company’s General Business Profi le .........................................................12912. Details of Subsidy received from Government of Karnataka ......................13013. Average Realisation ....................................................................................131Hubli Electricity Supply Company Limited 2

Board of DirectorsList of Directors (as on the date of AGM)Sl. No. Name of the Directors ParticularsSriyuths/Smt.1. Shamim Banu. M, I.A.S. Chairperson2. Pankaj Kumar Pandey, I.A.S. Managing Director3. P.K. Garg, I.P.S. Director4. M. Naveen Kumar, IA & AS Director5. B.S. Ramaprasad, I.A.S. Director6. D. Randeep, I.A.S. Director7. Dr. P. Boregouda, K.A.S. Director8. Chikkananjappa Director (Technical)9. H.R. Nagendra Director10. M.A. Hussain Director11. L. Ravi Director12. M. Nagaraju DirectorStatutory AuditorsCost AuditorsM/s Vijayapanchappa & CompanyChartered AccountantsM/s G.N.V & Associates,Cost Accountants,Bangalore3 9th Annual Report 2010-11

DIRECTORS’ REPORTDear Members,The Board of Directors of HESCOM is pleased to present the Ninth Annual Reporton the business and operations of the Company together with the Audited Statement ofAccounts for the year ended 31 st March 2011.Hubli Electricity Supply Company Limited was incorporated on 30 th April 2002 underthe Companies Act, 1956 and commenced its operations with effect from 1 st June 2002.During the year 2010-11, the Company embarked on various actions for deliveringbetter services in line with the Government objectives and policies.Following are some of the highlights:1. PERSPECTIVEAs on 31.03.2011• Area• Districts• Population• Consumers• No. of 33 S/S• No. of DTCs• HT line length• LT line length• Employee Strength• Sanctioned• Working• Vacant• Total Assets54513 sq.km7 Nos.1.48 Crs35.59 Lakhs1769099454607.95 ckt kms106494.41 ckt kms12856 nos.7515 nos.5341 nos.Rs. 2540 Crs5 9th Annual Report 2010-11

2. FINANCIAL PERFORMANCEThe fi nancial performance of the Company during the Financial Year 2010-11 ishighlighted as below:Sl NoParticularsFY- 2010-11(Rs/Crs)FY- 2009-10(Rs/Crs)1Net Sales/ Income from Operations3102.162277.592Revenue Subsidies and Grants0.000.003Total Operating Expenditure2859.942093.294Operating Profit/(Loss)242.22184.295Add :Other income17.8813.106Profit/(Loss) before Interest, Depreciationand Tax260.10197.407Less: Interest and Finance Charges289.54270.188Profi t/(Loss) before Depreciation,Extraordinary items and Tax(29.44)(72.79)9Less: Depreciation89.4982.2710Add: Prior Period credits54.22(18.58)11Profi t before Tax/(Loss)(64.70)(173.64)12Less: Provision for Taxes0.000.0013Net Profi t After Tax/(Loss)(64.70)(173.64)3. FINANCIAL HIGHLIGHTSDuring the year the revenue from operations has increased by 36% from Rs.2277.59Crs to Rs.3102.16 Crs. The Company has displayed a good performance by reducing itslosses by 63%. This has been possible because of receipt of additional subsidy of Rs.202.92 Crs from GoK pertaining to the previous years.The Company has purchased 8677.21 M.Us (at Generating Point) of power during theyear.The Power purchase cost has increased by 37% as compared to the previous year.During the year the Company has purchased High Cost Energy of 1400.10 M.U. at aHubli Electricity Supply Company Limited 6

cost of Rs.698.92 Crores as per the GOK’s decision. During the year, the Company haspaid Rs.1040.96 crores by cash and Rs.1107.13 crores by way of subsidy adjustmenttowards power purchase payments to KPCL/IPPs. The outstanding power purchaseliability of the Company as on 31.03.2011 is Rs.1586.22 crores.1. Financial PositionThe following table summarises the Financial Position of the Company at the end ofeach of the three years ending 2010-11.(Rs. in Lakhs)Particulars 2008-09 2009-10 2010-11a)b)c)d)e)LiabilitiesPaid-up capital (including sharedeposit/ share application moneypending allotment/ share suspense/share advance)Reserves and SurplusService lines and security depositsBorrowingsCurrent Liabilities and Provisions(including interest accrued and dueon loans)23333.61(1109.58)29772.36160780.48155676.8556324.92(600.70)34766.67171724.34182193.4363367.92(682.15)37562.61153743.56228662.05f)g)h)i)j)k)l)m)n)TOTALGross BlockLess : DepreciationLess:Consumer Contibution towardsCapital GrantsNet BlockCapital work-in-progressInvestmentsCurrent Assets, Loans and AdvancesMiscellaneous ExpenditureAccumulated LossTotalCapital EmployedNet Worth368453.72234261.3262403.7452003.85119853.724769.831.00195268.5916.3948544.18368453.72168682.58(26336.54)444408.67263315.3370032.1157905.65135377.573332.89251.00239523.9215.1865908.10444408.67199319.66(10199.06)482653.98276573.3277141.9262155.82137275.582584.79251.00270162.341.7072378.57482653.98186039.65(9694.50)NOTE:Capital employed represents net fi xed Assets plus capital work-in-progress plus working capital.Net worth represents paid up capital plus reserves and surplus less intangible assets.7 9th Annual Report 2010-11

2 CAPITAL STRUCTUREThe debt equity ratio of the Company was 6.89:1 in 2008-09, 3.05:1 in 2009-10 and2.43:1 in 2010-11.3 RESERVES AND SURPLUSThe reserves and surplus accumulated up to 31 March 2011 was Rs.(682.15) lakhas against Rs.(600.70) lakh as on 31 March 2010 and Rs.(1109.58) lakh as on31 March 2009. The reserves represented (0.14) per cent of total liabilities during2010-11 as against (0.14) per cent during 2009-10 and (0.30) percent during2008-09. The reserves and surplus was equivalent to (1.08) percent of equity capitalduring 2010-11 as against (1.07) percent during 2009-10 and (4.76) percent during2008-09.4 LIQUIDITY AND SOLVENCYa) The percentage of current assets, loans and advances to total net assets increasedfrom 53.00 percent in 2008-09 to 53.90 percent in 2009-10 and 55.97 percent in2010-11.b) The percentage of current assets, loans and advances to current liabilities(including provisions) varied from 125.89 percent in 2008-09 to 131.47 percentin 2009-10 and 118.15 percent in 2010-11.c) The percentage of quick assets (sundry debtors, loans and advances(excluding prepaid expenses and advance income tax) and cash and bankbalances) to current liabilities (excluding provisions) varied from 126.65percent in 2008-09 to 131.95 percent in 2009-10 and 119.06 percent in2010-11.5 WORKING CAPITALThe working capital of the Company at the close of the three years up to 2010-11 stoodat Rs.46179.28 lakh and Rs.60609.20 lakh and Rs.44059.03 lakhs respectively.Hubli Electricity Supply Company Limited 8

6 WORKING RESULTSThe working results of the Company for the three years up to 2010-11 are tabulatedbelow:(Rs. in Lakhs)2008-09 2009-10 2010-11Profi t (+)/Loss (-) for the year(57623.49)(15506.31)(11892.42)Prior period adjustments (Net)1572.88(1857.61)5421.95Profi t (+)/Loss (-) before Tax(56050.61)(17363.92)(6470.47)Tax Provision(25.78)0.000.00Profi t (+)/Loss (-) after Tax(56024.84)(17363.92)(6470.47)Percentage of Profit before Tax toSales(29.99)(7.62)(2.09)Gross Fixed Assets(23.93)(6.59)(2.34)Capital Employed(33.23)(8.71)(3.48)Percentage of Profit after Tax toNet Worth(212.73)(170.25)(66.74)Equity Capital(240.10)(30.83)(10.21)Capital Employed(33.21)(8.71)(3.48)7. COST TRENDSThe table below indicates the percentage of cost of sales to sales for the three years upto 2010-11.(Rs. in lakhs)Cost Trend 2008-09 2009-10 2010-11SalesLess Profi t/Add Loss for the year beforeprior period adjustmentCost of SalesPercentage of Cost of Sales to Sales(in %)186894.96(57623.49)244518.45130.83227758.74(15506.31)243265.05106.81310216.48(11892.42)322108.89103.839 9th Annual Report 2010-11

8. SUNDRY DEBTORS AND TURNOVERThe following table indicates the value of book debts and sales for the three years up to2010-11.(Rs. in lakhs)Ason 31MarchDebts consideredGoodDoubtfulTotal bookdebtsSalesPercentageof Debtorsto SalesSundrydebtors interms ofmonths’ sales2009120621.0710738.10131359.17186894.9670.38.432010136463.4110004.97146468.39227758.7464.37.722011156556.4010136.84166693.24310216.4853.76.454. STRATEGIES AND VISION OF THE COMPANYThe Company has the following strategies:1.2.3.4.5.6.Enhancement of revenue generation.Strengthening and refurbishing distribution network to reduce losses and cost ofoperation.Enhancing employee productivity.Providing best services to its consumers.Energy Audit at 33 KV / 11 KV DTC level to bring down avoidable losses.Enhancement of vigilance activities to reduce power theft and pilferage.HESCOM’s VISIONThe Company has set the following as its vision and is committed to work in thatdirection:1.2.100% Rural Electrifi cationReduce T&D Losses gradually to below 15%Hubli Electricity Supply Company Limited 10

3.4.5.6.7.8.9.100% Metering at all levels right from feeder end to consumer installationsElimination of Low Voltage Pockets by reorganizing the existing feedersconsequent to establishment of new Sub-stations by HESCOM and KPTCL.Reduction in interruptionPower Supply on DemandEliminate commercial losses by increased vigilance activitiesApplication of Information Technology in more and more activitiesIncreasing business effi ciency by reducing AT & C Losses.5. COLLECTION EFFICIENCYDuring the year, collection effi ciency of the Company has increased to 97% from 92%as compared to previous fi scal year. The Category wise collection effi ciency can beseen from the following table and graph:CategoryCollection Efficiency(in %)2010-11 2009-10LT1 BJ/KJ80.1471.12Collection Efficiency (%) - FY-11 V FY-10LT2101.22101.93120.00LT3LT4 IPLT598.1396.87100.66102.6983.24100.74Percentage100.0080.0060.0040.002010-112009-10LT6 W/S &P/LLT7HT68.12106.33100.8071.05105.8097.9120.000.00LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT Misc. TotalCategoryMisc.100.2497.91Total 96.73 92.3611 9th Annual Report 2010-11

6. METERED AND UN-METERED ENERGYThe Category-wise metered and un-metered energy sales during FY-11 & FY-10 areas noted below:CategoryLT1 BJ/KJLT2LT3LT4 IPLT5LT6 W/S &P/LLT7HTMeteredCategory wise Energy Sales in.MU2010-11 2009-10Total% ofEnergySalesMeteredUnmeteredUnmeteredTotal% ofEnergySales1 2 3 4 5 6 7 8 9113.34968.89280.90123.05282.85266.0515.051102.9736.800.000.003489.660.000.00150.14968.89280.903612.71282.85266.0515.051102.972.2514.514.2154.094.233.980.2316.51110.35894.71241.09128.58269.92231.5513.67979.0038.842950.33149.19894.71241.093078.91269.92231.5513.67979.00Total 3153.10 3526.46 6679.56 100.00 2868.86 2989.17 5858.03 100.002.5515.274.1252.564.613.950.2316.717. CUSTOMER PROFILEThe Company had a customer base of 34.40 lakhs at the beginning of the year. Withthe addition of 1.19 lakhs new consumers during the year, the customer base hasincreased to 35.59 lakhs as at the end of 31 03.2011.PROFILE- Customers profi le with respect to Consumption, Demand and Collection ishighlighted in the following graphs:Customer BaseCategory2010-11 2009-10LT1 BJ/KJLT2LT3LT4 IPLT5LT6 W/S & P/LLT7Installationsin Nos.7523661913737254634504005765113911916796%21.1453.787.1614.162.151.100.47Installationsin Nos.7315231850018242765492737718773706312179%21.2753.797.0614.322.091.080.35No. of Customers22000002000000180000016000001400000120000010000008000006000004000002000000Customer Base FY-11 V FY-10LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT2010-112009-10HT15280.0413850.04CategoryTotal 3558696 100.00 3439547 100.00Hubli Electricity Supply Company Limited 12

Revenue Demand as per DCBCategoryLT1 BJ/KJLT2LT3LT4 IPLT5LT6 W/S &P/L2010-11 2009-10Rs. in Lakhs %6795.7931820.0519231.54144965.2913637.4913413.342.3511.026.6650.224.724.65Rs. inLakhs6231.6928283.8615750.5853475.512683.9310502.62%3.5716.189.0130.607.266.01Rupees in Lakhs160000140000120000100000800006000040000200000Revenue Demand FY-11 V FY-10LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT Misc.2010-112009-10LT72076.350.721515.180.87CategoryHT54587.8618.9144004.1725.18Misc.2158.210.752309.851.32Total 288685.92 100.00 174757.38 100.00Revenue Collection as per DCBCategoryRs. inLakhs2010-11 2009-10% Rs. in Lakhs %LT1 BJ/KJ5423.091.944467.592.77LT232235.9011.5428876.7717.91LT318860.786.7516225.8410.06LT4 IP140462.5850.3044518.9627.61LT513743.964.9212783.677.93LT6 W/S &P/L9080.713.257400.234.59LT72253.050.811604.150.99HT55017.2419.7043094.5326.73Misc.2163.450.772262.001.40Total 279240.76 100.00 161233.74 100.0013 9th Annual Report 2010-11

Receivables from Consumers as perDCB (CB)Category2010-11 2009-10Rs. inLakhs%Rs. inLakhs%LT1 BJ/KJ6406.214.355033.533.66Receivable From Consumers FY-11 V FY-10LT2LT3LT4 IPLT5LT6 W/S& P/LLT7HT6111.13419.70103601.231462.2624226.84-513.845369.894.150.2970.430.9916.47-0.353.656526.9748.9399098.551568.7219894.18-337.125799.274.740.0471.991.1414.45-0.244.21Rupees in Lakhs160000.00140000.00120000.00100000.0080000.0060000.0040000.0020000.000.00-20000.00LT1 LT2 LT3 LT4 LT5 LT6 LT7 HT Misc. TotalCategory2010-112009-10Misc.18.150.0123.400.02Total 147101.57 100.00 137656.43 100.008 Bulk Power Purchase in HESCOMAs per Government of Karnataka Notifi cation Dtd: 06.07.2005, the allocation of powerfrom conventional energy sources was 20.3598% (Including HRECS 0.5009%) from10.06.2005 upto Oct-2009 and 18% was allocated to the HESCOM from November2009 to March 2010 vide letter No: EN 70 EMC 2009 dtd: 10.11.2009 of EnergyDepartment, Government of Karnataka. Non conventional energy projects areallocated based on geographical area from HESCOM.The Share of Major IPPs, KPCL RTPS-4 and Yalahanka DGS had been removedfrom HESCOM & share of Sharavathy Generating Station was increased to 25.6700%and the allocations of RTPS of M/s KPCL in respect of HESCOM was revised by theGOK vide its notifi cation dtd: 22.04.2006.GOK vide its notifi cation No. EN 69 PSR 2008 dtd 15.09.2008 has allocated 20.3598%of Bellary Thermal Power Station Stage-I power to the HESCOM and the same hasbeen continued for FY-2011Hubli Electricity Supply Company Limited 14

Based on the daily energy availability and requirements by ESCOMs, the energyallocation was revised and 18.18% was allocated to the HESCOM from 01.04.2010vide letter G.O No: EN 126 EMC 2010 dtd: 24.03.2010 of Energy Department,Government of Karnataka. The revised allocation is as noted below.SourceSharavathyOtherHydro EnergyRTPS 1 & 2RTPS 3RTPS 4RTPS 5 & 6RTPS 7HESCOM Share23.9200%18.1800%18.1800%10.3400%4.0000%18.1800%18.1800%Hydro Energy is billed for 341MUs per month for the period Jan-11 to March-11 as perG.O No. EN 35 NCE 2011 dtd 24.01.2011.HESCOM has purchased the power based on the Government of Karnataka Orderdtd : 24.03.2010 and 24.01.2011 for FY-2011.The total energy purchased, the actualenergy drawn at interface point and cost thereon are as follows.Total EnergyPurchased inMUs (ExcludingHRECS)Total Energydrawn at IFPoints inMUsPowerPurchase Costin CroresAverage Power Purchase Cost( Rs. Per Unit)AtGenerationPointAtInterface Point8677.21 8505.95 2478.35 2.86 2.91During FY 2010-11, due to acute shortage of power in Karnataka, GOK decided topurchase power from Co-generation Sugar Plants at the rate of Rs.5.50/- per unit for themonths of April 2010 & May 2010 and Rs. 5.00/- for the month of June-2010. Based onHon’ble KERC Order in OP No: 16/2010 dtd 24.03.2011, GOK revised and Rs. 5.00 perunit is fi xed in case of Co-generation Sugar Plants for the months of April- & May 2010.High Cost energy is also purchased from other generators (M/s JSW, M/s PTC, M/sNTPC VVNL, M/s LANCO, M/s IEX) and Captive energy (J.K.Cement, M/s Falcon Tyres,M/s Himatsingeka, M/s HareKrishana, M/s Shatvahan) for the FY 2010-11. The total high15 9th Annual Report 2010-11

cost energy purchased from these Generators (Co-gen) & others for the current FY is1400.10 MU, at the total power purchase cost of Rs. 698.91 crore, at an average cost ofRs. 4.99 / unit.For prompt and early payments, as per rebate scheme in PPA and CERC order,HESCOM has availed rebate of Rs. 4.92 crores during FY-11 from Central Generatingincluding PGCIL. 114.27 MU energy has been purchased under Unscheduled InterchangeMechanism under ABT and paid Rs. 37.51 crores.HESCOM purchases power from KPCL and IPPs at the tariff fi xed by the KarnatakaElectricity Regulatory Commission (KERC) from time to time. The average cost of energypurchase is Rs. 2.86/- unit during FY-11.As per Government of Karnataka Order dtd: 10.05.05, HESCOM has paid PCKLadministrative expenses amounting to Rs. 0.14 Crores for the FY-2011.STATEMENT SHOWING THE DETAILS OF PURCHASE COST DURING 2010-11SlNoMonthEnergyin MUs atGen PointEnergyin MUs atInterfacePointCost ofPowerPuchasein CrCostPowerPurchasedRs./UnitEnergyfromNCESin MU’sRebatein Cr123456789101112Apr-10May-10Jun-10Jul-10Aug-10Sep-10Oct-10Nov-10Dec-10Jan-11Feb-11Mar-11734.88708.44615.24593.92556.08557.40593.09637.03786.82991.71961.43114710741.96736.21584.53582.49585.93572.34602.81612.76813.23903.50831.12939.07196.76201.96184.38159.40161.86177.30193.05213.17228.82237.87253.32325.222.682.853.002.682.913.183.263.352.912.402.632.8370.9699.4699.2272.6565.8642.2234.5460.8684.8978.7172.2955.90Total 8883.14 8505.95 2533.11 2.85 837.56 4.92Less HRECS 205.93 49.84 2.42Less Rebatefrom powerGenerators4.92Net Total 8677.21 8505.95 2478.35 2.86Hubli Electricity Supply Company Limited 16

DETAILS OF POWER PURCHASE BY HESCOM FROM APR- 2010 TOMarch-2011 FROM ALL SOURCESSLNoName of TheCompanyEnergy inMUCost of PowerPurchased in CrCost PowerPurchasedRs./UnitRebate inCr1234567(a(b)891011CGSKPCL-HYDELKPCL-SOLARKPCL-THERMALMINI HYDELWIND MILLCO-GENERATIONCo-Generation(Regular)Co-Generation (HighCost)BIO-MASS (HighCost)HIGH COST (Others)UPCLInter-ESCOM EnergyExchange2003.752474.883.791730.0850.26428.22316.6142.490.781356.83325.24150.21516.68167.482.27504.3515.83145.75112.9422.390.39676.1485.2042.912.580.686.002.923.153.403.575.275.004.982.622.864.9212131415TotalKPTCL TR.CHRAGESSLDC O &MExpensesSPCC/PCKL Adm.ExpLC Charges Relatedto Purchase of Power8883.142292.33236.902.700.141.042.584.92Total 8883.14 2533.11 2.85Less: HRECS 205.93 49.84 2.42Less: Rebate from powerGenerators4.92GRAND TOTAL 8677.21 2478.35 2.86 4.9217 9th Annual Report 2010-11

9. METER READING / BILLING EFFICIENCYThe Company aims at 100% achievement in metering of all its consumers. It couldachieve 86.59% overall effi ciency in Metering and 99.94% in Billing during the year.LT-2, LT-3, LT-5, LT-6, LT-7 and HT categories recorded almost 100% metering.However, LT-1 (BJ/KJ) records 83.41% where as LT-4 IP sets recorded only 30.10%.The Company is committed to achieve 100% metering in LT-1 & LT-4 category also.This can be possible only after installing meters to all the IP sets and BJ/KJ installations.The metering programme that is currently under progress for these categories is beingpursued.10. DEMAND SIDE MANAGEMENT (DSM)KPTCL is transmitting energy to HESCOM through the following Transmission Network& Electrical Sub stations:Voltage class of Stations No. of Stations400 KV1220 KV22110 KV15366 KV133 KV176Total 35311. ENERGY INFLOW / OUT FLOWDuring the year, the Company had an infl ow of 8407.44 M.Us and an outfl ow of 6679.56M.U. The Company suffered losses to the extent of 1727.88 M.U., which works out to20.55%.12. DISTRIBUTION LOSSESDuring the year, the Distribution loss of the Company stood at 20.55% as against20.86% in the preceding year. The details are as noted below:Hubli Electricity Supply Company Limited 18

Sl. No.abcdefParticularsEnergy Sales:Total energy available for saleTotal metered salesTotal un-metered salesTotal salesDistribution lossesPercentage of Distribution lossesEnergy in M.U2010-11 2009-108407.44 7401.893153.10 2868.863526.46 2989.176679.56 5858.031727.88 1543.8520.55% 20.86%13. REDUCTION OF DISTRIBUTION LOSSESHESCOM has taken up various extensions and improvement works in order to reducedistribution losses. Under the action plan for reduction of losses in HESCOM area, thedetails of initiatives are as follows:• 240 Nos. of 11KV feeders were identifi ed for re-conductoring, out of which 82Nos of feeders were completed during 2008-09, 41 feeders have been completedduring 2009-10. No feeder has been completed during 2010-11.• The company has so far metered 39341 DTCs as at the end of March-2011 outof 90994 existing DTCs. Energy audit is being done for almost all urban DTCs toanalyze loss levels.• HESCOM has undertaken “Niranthara Jyoti Yojana” prestigious project ofGovernment of Karnataka and completed works on pilot project basis for 22feeders in 3 Taluks namely; Bailhongal, Shiggaon and Savanur.• NJY under phase-1 in 20 Taluks was taken and out of 20 Taluks in 16 Taluks workis under progress. (Number of Feeders = 252 Nos).• NJY under phase-2 in 14 Taluks was taken and tendering process is under progress(Number of feeders = 214 Nos).• This will enable for bifurcation of IP sets and rural loads. Thus, proper assessmentfor IP sets consumption pattern and other rural consumption is possible.19 9th Annual Report 2010-11

• 56 Nos. of new 33KV sub-stations are taken up and the works are under progress.25 Nos. of substations are commissioned during the 2008-09 and 12 stationscommissioned during 2009-10 and 7 sub-stations are commissioned during2010-11.• Action is taken to replace MNR meters at the earliest. All efforts are being madeto ensure that DC or MNR installations are within 1%. Out of 85897 MNR metersfound during 2010-11, 46,118 MNR meters have been replaced during the year.• It is proposed to replace Electro-mechanical meters by static meters.• Efforts are being made to meter all the un-metered installations in IP and BJ/KJcategories.• Raids are being conducted by vigilance squads to detect and curb theft ofelectricity.• Regular rating of HT and LT installations are being monitored and the meteringsystem is kept in good condition.• All the 465 interface points between KPTCL & HESCOM are metered and theenergy received at all these points are measured and recorded.14. ENERGY AUDIT:Division wise Energy audit of HESCOM is being conducted every month to calculatedistribution loss energy audit of all the 19 Divisions is being monitored every monthin HESCOM. Energy audit of 73 major cities / towns is also being conducted everymonth. Energy Audit of 11KV feeder level is also monitored. There are about 1869feeders in HESCOM distribution system.15. REDUCTION OF SYSTEM LOSSESThe following measures taken up by the Company are being monitored to reduce theAT& C Losses:a.To remove rural loads on town /city feeders so that Towns/ Cities to be fed fromseparate urban feeders, with input Energy meters kept always in good workingconditions.Hubli Electricity Supply Company Limited 20

.c.d.e.f.g.h.i.j.k.l.m.n.Arranging to provide metering equipment to DTCs in the towns & analyzingHT & LT Losses after the synchronization of individual DTC & its connected LTinstallations.Load balancing on the DTCs.Replacement of MNR meters by good Energy meters.Achieving 100% reading and billing of LT installations.Minimizing the Door Lock & unread installations (i.e., By taking readings onsubsequent dates).Proper metering of Street Light and water supply (LT –6) installations formonitoring the consumption.Metering monthly billing of IP Set installations coming on town feeders.To continue all out-efforts in increasing the metered consumption & issuing of100% bills.To increase the revenue collection by rigorous disconnection drives & continuousmonitoring thereby increasing the collection effi ciency & over all businesseffi ciency (to reduce ATC Losses)To sort out & dismantle long disconnected installations to avoid possible theftof Energy by unauthorized reconnection and for judicious use of released idlemeters etc., in the system.To pool up vigilance & MT batches to create mass raids to detect theft of Energy& to arrest possible theft.To bring up customer awareness by chalking out programmes for propereducation about electricity.Study of category wise consumption pattern of LT3 and LT5 installations andthereby taking measures like rating, sealing of terminal covers with numberedpoly carbonate seals etc.21 9th Annual Report 2010-11

16. DISTRIBUTION TRANSFORMER FAILUREThe failure rate of Distribution Transformers during 2010-11 stood at 14.54% in Ruraland 4.80% in urban areas. Totally, 11983 Distribution Transformers have failed andabout 12057 Transformers are replaced during the year. These failed transformers arebeing repaired and put back to use. The no. of transformers repaired during the yearis 10170 as against 11585 during the previous year. The Company is committed toreduce the failure rate of transformers by way of various Extension and Improvementworks and by removing of load on the over loaded transformers by adding new T.Cs.17. CAPITAL EXPENDITUREDuring the year the Company has incurred Rs.159.95 crores towards capital expenditureas against Rs.323.93 crores in the previous year. The details of expenditure underMajor heads are as noted below:Service ConnectionGanga KalyanExtension and ImprovementReplacement of Failed Distribution TransformersReplacement of ConductorsProviding Infrastructure to UAIPMeteringRural Electrifi cation works (RGGVY, NJY, RLMS,Hamlets etc)RAPDRPALDC/SCADAStationsCivil WorksFlood Affected WorksOthersTotalRs. in crores10.1413.3111.4150.498.702.102.5119.620.671.9725.162.378.552.95159.95Hubli Electricity Supply Company Limited 22

18. HT / LT LINESThe Company has drawn 1503.669 kms of HT lines and 1464.581 kms of LT linesduring the year. The Total HT and LT Lines as at 31-3-2011 stood at 54607.9514 kmsand 106494.411 kms, respectively.19. METERINGUnder the metering programme of the Company, 35017 new meters have been fi xedduring the year as against 73087 during 2009-10. The expenditure incurred for thispurpose during the year is Rs. 2.51 crs.About 296 DTCs have been metered during the current year. As against 90994 DTCs,39341 DTCs have been metered as at the end of 31.3.2011 and the remaining 51653DTCs are to be metered in a phased manner.20. ESTABLISHMENT OF 33 / 11 KV SUB-STATIONSSl.No.12345ParticularsNo. of stations underprogress including spill overworks and works awardedduring the year 2010-11(Including augmentationworks)Award Cost (Rs. in Crores)No. of stations commissionedduring the year 2010-11including Augmentation.Expenditure incurred for theyear 2010-11 (Rs. in Crores)No. of stations underprogress for the year2011-121637.461025.16623 9th Annual Report 2010-11

The Company has commissioned the following 7 new sub-stations during the year:Sl.No.Name District Taluk Name Capacity Date of Commissioning1234567BidariLondaKalkeriSidenurNandikurliShedbalArvatagiBagalkotBelgaumHaveriHaveriBelgaumBelgaumDharwadJamakhandiKhanapurHangalHangalRaibagAthaniDharwad2X5MVA2X5MVA2X5MVA2X5MVA2X5MVA2X5MVA2X5MVA28-08-201013-10-201030-10-201030-10-201031-10-201021-01-201129-01-2011The following 3 stations were augmented during 2010-11Sl. No. Name District Taluk Name Capacity Date of Commissioning1HulkundBelgaumRamdurg1X5MVA07-05-20102BatkurkiBelgaumRamdurg1X5MVA24-07-20103YellapurUttarKannadaYellapur1X5MVA24-09-201021. R-APDRP1.2.Ministry of Power, Government of India has launched Restructured AcceleratedPower Development and Reforms Programme (R-APDRP) in XI fi ve year plan.The programme is proposed to be implemented on all India basis covering Town/Cities with a population of more than 30,000 as per population data of 2001 census.As per the above guideline, 31 towns are selected from HESCOM.Projects under the Scheme shall be taken up in two parts. Part-A shall includethe projects for establishment of base line data and IT applications for energyAccounting & Auditing and IT enabled Consumer Service Center. Part-B shallinclude regular distribution strengthening projects.Hubli Electricity Supply Company Limited 24

3.Projects under Part-A includes Establishment of Data Center at Bangalore city,Establishment of Disaster Recovery Center at Hubli and IT applications whichincludes the following modules.i.ii.iii.iv.v.vi.vii.viii.ix.x.xi.xii.xiii.xiv.xv.xvi.xvii.xviii.Meter Data AcquisitionEnergy AuditNew ConnectionDisconnection & DismantlingDevelopment of Commercial Database of ConsumersMeteringBillingCollectionsCentralized Customer Case ServicesWeb Self ServiceAsset ManagementAsset MaintenanceGIS based customer Indexing and asset mappingGIS based integrated network analysis moduleManagement Information System(MIS)System Security RequirementIdentity and Access Management SystemDGPS based GIS survey in the identifi ed towns, AMR implementation andEstablishment of LAN, MPLS VPN and other Networking in the identifi edtowns.4.5.6.Detailed Project Report (DPRs) covering all 31 towns were submitted to PowerFinance Corporation Ltd., Delhi on 09.02.2009 and the same was approved on13-02-2009 and loan to an extent of Rs.52.62 Cr has been sanctioned.DPRs under Part-B were submitted to Power Finance Corporation (PFC), Delhion 26.03.2010 and the same was approved on 08.06.2010 and loan to an extentof Rs. 278.36 Cr has also been sanctioned. MOA is signed with M/s PFC Ltd.,New Delhi on 29.03.2011.M/s Reliance Infrastructure Ltd., Mumbai is appointed as IT Consultant andthey have studied AS-IS process of the HESCOM and proposed Roadmap forHESCOM.25 9th Annual Report 2010-11

7. BESCOM fl oated request for Proposal (RFP) for appointment of IT implementationAgency (ITIA) on behalf of all ESCOMs of Karnataka on 19.08.09.8.9.10.M/s. Infosys Technologies Ltd., Bangalore were appointed as IT ImplementationAgency and their letter of Acceptance for the same has been received on 17.12.2009.Contract Agreement signed on 31-12-2009 and introduction meeting appraisingthe scope of ITIA in R-APDRP was held on 20-01-2010. They have completedstudy of AS-IS process and held To-Be workshop on 22 & 23-03-2010.Detailed Work Award for ITIA was issued to M/s Infosys Technologies on 19.05.2010and the software & hardware installation works are under progress.Ring fencing for all the selected 31 towns is completed and after three billingcycles accurate baseline data with due verifi cation by TPIEA has been furnishedto M/s PFC Ltd., New Delhi.22. BACHAT LAMP YOJANADeveloping and Implementing CDM Project Activities (CPA) under CDM Programmeof Activities (POA) CFL-Lighting Scheme “Bachat Lamp Yojana” in HESCOMJurisdiction.HESCOM intends to promote energy effi ciency in lighting system of the residentialhousehold consumers in its area based on the scheme parameters laid down byBureau of Energy Effi ciency, Ministry of Power , Govt. of India under the CDM basedCFL Lighting Scheme- “Bachat Lamp Yojana” (BLY).PROJECT DETAILSThe Cost of the Project is Rs. 1157 Lakhs. There is no fi nancial assistance fromHESCOM. The cost involved in execution of the project will be borned by the investorsand the same will reimbursed by UNFCCC (the United Nations Framework Conventionon Climate Change) after successful completion of the project as per guidelines.In this scheme it is proposed to replace 77,11,023 nos of ICL bulbs by CFL bulbs. Byexecuting this scheme Peak load will be reduced by 362 MW approximately23. SCADAIE SCADA stands for Integrated Extended Supervisory Control And Data Acquisition.This project in Karnataka is awarded to M/s ABB Ltd, Bangalore on total turnkey byHubli Electricity Supply Company Limited 26

the CEE T&P, KPTCL, Bangalore collectively for KPTCL and its constituents ESCOMsat Rs.220 Crores of which HESCOM share is Rs.22.93 Crores. This project helps toobtain and monitor real time data of all generating stations, all substations of variousvoltage levels, all IPPs and all EHT consumers in the state. In HESCOM 136 numbersof 33kV substations are included under SCADA in 1 st phase. Progress of SCADA iscategorized under two parts.1. Establishment of Distribution Control Center at Corporate OfficeAt Distribution Control Center (DCC), works such as erection of Large VideoScreen, installation of 2 x 10 KVA UPS, networking cabling etc., has beencompleted. Supply, erection and commissioning of VSAT for DCC is pending andcommunication is achieved through 2 Mbps Leased Line. DCC is operational atcorporate offi ce, HESCOM and load monitoring is being exercised.2. Field progressIn HESCOM 136 numbers of 33/11kV substations are included in IE SCADAproject out of which 128 substations have been validated as on August 2011, workwith balance 8 nos of stations is pending due to fi eld problems which will be takenup shortly.2 nd PHASE32 nos. of 33/11KV stations are recognized for 2 nd Phase SCADA, which will beawarded on rate contract.24. ENERGISATION OF DRINKING WATER SUPPLY SCHEMEThe Company has serviced 789 drinking water installations during April-2010 to March2011 under Drinking Water Supply Scheme both in rural and urban areas.25. ELECTRIFICATION OF HB / JCs / TANDASThe Company has electrifi ed 17 Habitations and 1 village during the year. Apart fromthis, the Company has also electrifi ed 8686 nos. of BPL houses during the year underRGGVY Scheme.26. ENERGISATION OF IP SETSThe Company has serviced 11823 IP Sets during 2010-11.27 9th Annual Report 2010-11

27. ENERGISATION OF GANGA KALYAN INSTALLATIONSThe Company has serviced 4001 Ganga Kalyan installations during 2010-11.28. ELECTRIFICATION OF HOUSES UNDER RGGVY SCHEMEThe Government of India has introduced a scheme for creation of Rural ElectricityInfrastructure and Household Electrifi cation known as Rajeev Gandhi GrameenaVidyutikarana Yojna (RGGVY) through Rural Electrifi cation Corporation Ltd. Underthis Scheme infrastructure facilities are being provided for electrifi cation of housesbelonging to the people Below Poverty Line. The benefi ciaries of this scheme are tobe identifi ed by concerned Panchayats.1 Award Cost for Seven Districts (Rs/Crs). 263.612 No. of BPL House holds awarded. 2537393 No. of BPL Households Completed as on 31-03-2011 2157284 Expenditure incurred up to March-2011 (Rs/Crs). 227.10The project fi nancing is made through REC, which includes 90% capital subsidy and10% loan.29. REGULATORY AFFAIRSHESCOM fi led its application before the Honorable KERC, Bangalore, in respect ofAnnual Performance Review for FY-10 and approval of ERC for the Second ControlPeriod FY-11 to FY-13 and Tariff Application for FY-11, on 13.08.2010 under Multi YearTariff frame work.The Honorable Commission issued the order on HESCOM’s Annual PerformanceReview for FY-10 and approval of ERC for the Second Control Period FY-11 to FY-13under Multi Year Tariff frame work and Distribution & Retail Supply Tariff for FY-11, on07.12.2010.The salient features of the Order are as followsThe Commission has appro• ved an ARR of Rs. 3030.27 Crores as against theHESCOM’s proposal of ARR of Rs.3285.29 Crores.Hubli Electricity Supply Company Limited 28

• The revenue gap as worked out by the Commission before subsidy is Rs. 1628.61Crores as against HESCOM’s estimated gap of Rs. 1883.29 Crores.• The Commission has allowed additional revenue of Rs.85.11 Crores on TariffRevision as against the proposed additional revenue of Rs. 222.60 Crores.• The approved increase in revenue is 6.75% against HESCOM’s proposed increaseof 17.66%.• Commission has allowed an average increase of 28.64 paisa for categories otherthan BJ/KJ & IP sets as against 75 paisa sought by HESCOM for categories ofconsumers.• The Commission has set aside Rs.145.62 Crores as Regulatory Assets to berecovered by HESCOM in the remaining years of the control period 2011-13.• The Commission has issued new directives to ESCOM’s to provide 12 hours ofsingle phase power supply to rural areas between 6.00 PM and 6.00 AM.• The Commission has provided a separate fund for facilitating a better consumerrelation/ consumer education programmes.• Procurement of short term power is capped at Rs. 4/- per unit to meet short fall insupply if any.Sales for FY-10Financial Performance of HESCOM for FY-10The Commission considered the actual sales of 5858.03 MU for the approval of theARR for FY-10.Distribution Loss: - The Commission has approved distribution losses of 22.50% asper the Tariff Order 2009 dated 25.11.2009. The approved range of the distributionlosses is from 21.50% at the lower limit to 23.50%. The actual distribution lossesof 20.86% falls below the approved lower limit of 21.50%. HESCOM is allowed anincentive of 6.35 Crores on account of reduction of distribution losses below targetedlevels.29 9th Annual Report 2010-11

Approved ARR for FY-10(Rs. in crores)Sl.No.ParticularsApproved asper Order25.11.2009As appd inAPR1Power Purchase Cost1951.511775.782O&M Expenses276.44280.103Depreciation106.1782.114Interest & Finance Charges5Interest on Loan Capital136.05156.866Interest on Working Capital42.0350.097Interest on Consumer Deposits17.2117.218910Interest on belated payment of powerpurchase costOther Interest & Finance ChargesTotal0.000.002529.410.000.522362.6611Less: Interest & other expensescapitalized0.002.4612Other Debits (incl. Prov for Bad debts)0.009.3913Other (Misc.)-net prior period credit0.0020.6614Total2529.412390.2515ROE0.000.0016Other Income14.8214.1017Provision for taxes0.000.0018Penalty/ Incentive on account of DistributionLosses0.006.3519NET ARR2514.592382.51Hubli Electricity Supply Company Limited 30

Gap in Revenue for FY-10The cumulative gap for FY-10 as per the approved ARR is as follows(Rs. Crores)ParticularsFY10Net Approved ARRRevenue as per actual including subsidyGap for FY102382.512277.07105.44The Commission notes that, even after considering the revenue demand & subsidyof Rs.1033.85 Crores accounted towards free power to BJ/KJ and subsidized/free power toIP sets, there is a defi cit of Rs.105.44 Crores for FY-10.Tariff Subsidy for FY10Sl.NoPARTICULARS(Rs. Crores)FY1012345678910111213141516Net ARR (Trued Up)Total Energy Sale for all categories during the year MUAverage cost of supply in Rs. per unitEnergy Sale for IP Sets (LT-4a) & BJ/KJ during the year MUEnergy Sale to other categories other than IP sets during theyear –MUTotal Revenue demand for the year in respect of IP sets & BJ/KJTotal Revenue demand for the year in respect of all categoriesother than IP & BJ/KJRevenue estimation of IP Sets based on average cost of SupplyRevenue estimation of all Categories other than IP setsRevenue estimation based on average cost of SupplyGross Revenue subsidyCross subsidy contribution from other categoriesBalance of committed subsidy to be accountedBalance of revenue Subsidy to be allocated by GoK for the yearRs. CrsTotal subsidy due including carrying costAdditional subsidy for FY102382.515858.034.073104.902753.131033.851243.221262.791119.722382.51228.94123.50---105.4431 9th Annual Report 2010-11

As per the above computation, a balance of Rs.105.44 Crores has to be paid by GOKas additional subsidy for FY-10. Accordingly there will be no gap in the revenue requirementof HESCOM for FY-10.Annual Revenue Requirement for FY11-FY13The Commission has considered the growth rate of 23.13% for FY12 and 10.05%for FY13 as proposed by HESCOM for projecting the sales fi gures over the approved basefi gures of 6331 MU for FY11.The approved sales for the control period are indicated below:-( In MU)Particulars FY11 FY12 FY13Proposed by HESCOM635378238610Approved by the Commission633177968580The approved distribution loss for the control period are indicated belowParticulars FY11 FY12 FY13Energy at Interface Points in MU7914.329684.5810592.57Total sales in MU6331.457796.088579.98Distribution loss as a percentage ofinput energy at IF points in %20.0019.5019.00The approved range of distribution loss for the control period are indicated belowRange FY11 FY12 FY13Upper limit21.0020.5020.00Average20.0019.5019.00Lower Limit19.0018.5018.00Hubli Electricity Supply Company Limited 32

The approved Power Purchase Quantum & Cost for the control period are indicatedbelowSourceFY11 FY12 FY13Energy Cost Energy Cost Energy CostKPCL Hydel2212.03142.722059.74139.142063.34141.92KPCL Thermal2048.21558.623134.09828.943259.43877.86CGS1787.08487.252259.47657.182815.51851.95Major IPP315.1889.401366.95390.841366.95398.19NCE805.89272.63976.59337.61168.00410.26Others401.24203.6049.6311.0049.6311.00Short-term674.45329.13239.5383.84306.47107.26TOTAL 8244.08 2083.35 10086.00 2448.54 11029.33 2798.44The approved Total Power Purchase Cost for the control period are indicated belowYear Power Purchase Cost Transmission Charge TotalFY112083.35249.642332.99FY122448.54294.422742.96FY132798.44343.493141.93The approved Total Consolidated ARR for the control period are indicated below:-Sl.No1Particulars FY11 FY12 FY13Power Purchase Cost2334.91 2744.98 3144.052O&M Expenses331.04358.32387.883Depreciation122.57137.60161.584Interest & Finance Charges---5Interest on Loan Capital187.22217.04238.6033 9th Annual Report 2010-11

Sl. No Particulars FY11 FY12 FY136Interest on Working Capital51.1459.6865.857Interest on Consumer Deposits18.0218.8719.758Interest on belated payment of powerpurchase cost0.000.000.009Other Debits (incl. Prov for Bad debts)0.000.000.0010Other (Misc.)-net prior period credit0.000.000.0011Total3044.913536.494017.7212ROE0.000.000.0013Other Income15.1416.6518.3214Provision for taxes0.000.000.0015Fund towards Consumer Relations /Consumer Education0.500.500.5016NET ARR3030.273520.343999.90The approved Average Cost of Supply for the control period are indicated belowSl.NoParticulars FY11 FY12 FY131.Net ARR (Rs. Crores)3030.273520.343999.902.Energy Sales in MU6331.457796.088579.983.Average Cost Rs. Per unit4.794.524.66The Commission, having regard to the unavoidable and extraordinary situation ofbuying the high cost short term power to meet the defi cit power situation in the State forFY11, decides to pass on only a part of the increased average cost of supply to the electricityconsumers of the State in order to minimize the effect of tariff increase. Accordingly, theCommission decides to pass on 28 paisa per unit out of the increased average cost of 51paisa per unit in the case of HESCOM in the tariff determined for FY11. The remaining 23paisa per unit is being treated as ‘Regulatory Asset’ (Deferred Revenue Expenditure) forFY11 and an amount of Rs.145.62Crores, will be adjusted in the remaining years of thecontrol period.Hubli Electricity Supply Company Limited 34

Revised ARR for FY11-13 after Regulatory AssetSl.NoParticulars FY11 FY12 FY131Net ARR Rs Crs3030.273520.343999.902Energy Sales in MU6331.457796.088579.983Average Cost (Rs. per unit)4.794.524.664Regulatory Asset paise per unit-0.23+0.12+0.115Average cost after apportioning RegulatoryAsset Rs/Unit4.564.614.746ARR after Regulatory Asset Rs Crs2884.643596.314069.54HESCOM has also fi led its application on 15.06.2011 before KERC for approval ofAnnual Performance Review for FY-11 & Tariff revision application for FY-12 as per therevised projections of FY-12 calculated on the basis of actual for FY-11 as per provisionalaccounts of FY-11.The salient features are as fallowsProjected sales and distribution lossSlNo.ParticularsFY-11ProvisionalFY-12ApprovedFY-12Revised1Energy Purchase (MU)8748.4710086.009769.272Transmission loss %4.003.983.983Transmission loss in units349.94401.42388.824Energy at IF point8398.539684.589380.455Energy to Hukkeri Society205.93-226.526Energy at IF point for HESCOM only8192.609684.589153.937Distribution loss %19.8519.5019.358Distribution loss units1626.231888.491771.299Energy Sales6566.377796.087382.6535 9th Annual Report 2010-11

Projected ARR & ERCSlNo.ParticularsFY-11ProvisionalFY-12ApprovedFY-12Revised1ARR3208.243520.343170.882Regulatory Asset-145.6275.9775.973ARR after Regulatory Asset3062.623596.313246.854Revenue2877.681642.561642.565Subsidy--1508.501508.506Defi cit184.94445.2595.79Cumulative Gap :-Gap for FY-11 :- Rs. 184.94 CroresGap for FY-12 :- Rs. 95.79 CroresTotal Gap :- Rs. 280.73 CroresCost of SupplySlNo.ParticularsFY-11ProvisionalFY-12ApprovedFY-12Revised1ARR (Rs in Crores)3062.623596.313246.852Sales (in MU)6566.377796.087382.653Average cost of Supply(Rs per Unit)4.6644.6134.648HESCOM has proposed Tariff hike of 88 paisa per unit on all categories except BJ/KJand LT-4(a) categories which are subsidized by the Government of Karnataka.The Honorable Commission is considering the same and further procedures areunder process.Hubli Electricity Supply Company Limited 36

30. QUALITY OF POWER SUPPLYHESCOM will continue its efforts to improve quality of service in rural as well as urbanareas by undertaking the following works in the year 2011-12.Sl No.Proposed works forimproving the quality ofserviceUnitPhysicalquantitiesFinancialquantities Rs inCrores.1Construction of New 33KVStations & LinesNos/Kms10/153.353281.772Augmentation of StationsNos131337.743Nirantara Jyothi YojanaNos43649636.004Replacement of Rabbitconductor by Coyote of 33KV lineKms3742871.625Replacement of Weaselconductor by Rabbitconductor of 11 KV lineKms63132.506Replacement of age oldLT-conductor by RabbitconductorKms400583.00In addition to above, HESCOM has planned to take up the following extensive maintenanceworks to improve the quality of service i.e. reduction of interruptions in rural areas:1.2.3.4.5.Providing Intermediate poles to reduce sagging in HT & LT lines.Providing Additional distributional transformers to reduce over loading of existingtransformers.Extensive maintenance of equipments of 33KV Stations as per the maintenanceschedule prescribed by equipment manufactures.Conversion of lengthy single phase line into three phase lines.Increasing H T-line length to reduce HT to LT line ratio.37 9th Annual Report 2010-11

31. INSTITUTIONAL STRENGTHENING:Industrial training Centre is established in the year 2002 at Vidyutnagar, Hubli. Duringthe Financial Year 2010-11, training has been imparted to 2874 no. of various cadresof HESCOM offi cers/employees and training details are as given below:1.2.3.4.5.6.As per Karnataka Govt. Apprenticeship Act-1961, one year Apprenticeship trainingprovided to 60 nos. ITI candidates.543 Micro Feeder Franchisees and 1420 C&D Employees have been trainedunder National Training Programme.A training programme on DCB and other revenue related matters is given to 765nos. of Asst. Accounts Offi cers / Senior Assistants / Assistants.Pre-promotional training provided to 28 nos. of Meter Readers / Operators /Overseers / Asst. Store Keepers.Induction Training Programme for Newly recruited Junior Engineer – 81 Nos.Pre-Promotion Training for S.S.L.C Passed line staff – 37 Nos.32. LATEST IT-INITIATIVES IN HESCOM:The following latest IT initiatives will be implemented in HESCOMa) Website:- The HESCOM website designed, hosted and maintained by IT Sectionof HESCOM and hescom.co.in is running successfully from July 2011. Websiteis updated instantly. HESCOM website provides all the basic information regardingthe Company profi le and activities.b) E- Procurement: - Government of Karnataka through its implementing agencyCentre for e-Governance has implemented single unifi ed end-to-end e-Procurementplatform in Karnataka. The e-procurement system has been adapted in HESCOMon 19.07.2010 to procure works, goods and services.c) Video conferencing facility in HESCOM: Video conferencing facility to HESCOMis provided by M/s Webex Communications Pvt. Ltd.,. Managing Director willconduct meeting through this video conferencing with offi cers.d) HESCOM has proposed to implement the following customer friendly ITinitiatives for enabling the consumer to access the billing details online.Hubli Electricity Supply Company Limited 38

• ERP package includes Finance and Accounts, HRMS, store inventory andmaterial management, project monitoring and legal activity monitoring, tendermonitoring and transformer failure and replacement monitoring. Under thisproject, these modules are covered. Some features of this solution can alsobe accessible through mobile.33. HUMAN RESOURCE INITIATIVES:The employee training and development is being organized so that greater thrust isgiven to build competency for meeting the new emerging business challenges. 99nos. of HESCOM offi cials of various cadres are trained in different reputed traininginstitutions on deputation basis during the Financial Year 2010-11 Some of thetraining institutions are listed below:1.2.3.4.5.6.7.8.9.10.11.Training Institute, Gunghargatti, DharwadInfosys at MysoreNational Productivity Council at MussooriESCI Campus, Hyderabad.The Institute of Cost & Works Accountants of India Lodhi Road, New DelhiKarnataka Employers, Association, Vanivilas Road, BengaluruPublic Services, SAP India Pvt. Ltd Capital Raj Bhavan Road, Bangalore.Shanthala Power Limited, HubliCentral Institure for Rural Electrifi cation of Rural Electrifi cation CorporationLtd., (REC), Shivarampaly, HyderabadCPRI, Bangaloree-Governance, Room No.1, Ground Floor, 2nd Gate, M.S. Building,Dr. Ambedkar Veedhi, Bangalore34. CUSTOMER CARE:The Company is committed to the best care of its Customers. 24X7. Towards this endCustomer Care Centre has been opened at Corporate Offi ce of HESCOM for propermonitoring of Customer Care activity such as registration of consumer complaintsand speedy redressal of consumer grievances. Public meetings are being conductedto redress the Consumer grievances. Consumer complaints are being heard andredressed by Executive Engineers El., at Divisional Level on every fi rst Saturday ofeach month.39 9th Annual Report 2010-11

The Company is offering the following consumer friendly measures for theirbenefi ts:Sl. NoConsumer Friendly Measures initiated1. TOD-Tariff2. Soujanya Counters in all Sub-Divisions3. 24Hrs. Customer care centers with Toll free telephone numbers functioning in9 Divisions of HESCOM.4. Janasamparka Sabhas are being conducted regularly in all Divisions.5. Phone-In-Programmes in All India Radio and Doordarshan6. Creating awareness among school children about electricity usage, safetymeasures and conservation.7. Providing Cheque drop boxes in all Sub-Divisions/Accounting sections.35. CONSUMER FRIENDLY GRIEVANCE REDRESSAL MECHANISMProtection of consumer’s interest is the main motive of the Company. Following arethe steps initiated by the Company for accomplishment of this goal:‣ System of regular interaction meetings with customer welfare associationsat Sub-Division/ Division has been put in place.‣ Interaction meetings to redress grievances of the consumers are heldregularly with consumers’ associations like Chamber of Commerceand Industries, Nagarika Vedike, Kolache Nivasigala DevelopmentService Sangh, Karanataka Dalit Sangarsh samiti and Farmer’s WelfareAssociations.‣ Vidyut Adalats are headed by the Deputy Commissioner of the District inall the Districts for redressal of consumer grievance.‣ Senior Offi cers of the rank of Executive Engineer (El.), are made availableduring the peak hours between 6.30 P.M. to 7.30. P.M. for proper monitoringof costumer complaints and speedy redressal of complaints. Similarly,the services of AE/JE are spared at the service stations for attendingto customer complaints. Special efforts are also being made to bring inattitudinal change in fi eld staff attending to the costumer complaints. TheStaff is advised to show courtesy, politeness and responsiveness whiledealing with consumers.Hubli Electricity Supply Company Limited 40

‣ The Company has arranged Interaction Programme to redress consumergrievances by inviting complaints through leading News Papers andredress the same in co-ordination with Nagarika Vedike. Many complaintswere redressed.‣ System has been put in place for attending to consumer complaints quickly.This is possible with a newly opened active 24x7 Customer Care Centreat the Corporate Offi ce of HESCOM which monitors the Customer Careactivity, such as registration of consumer complaints and speedy redressalof consumer grievances. Customers can even approach Managing Directordirectly over phone (Mobile/Land Phone) with their complaints or in person.The landline and Mobile phone numbers have been published in NewsPapers; Executive Engineer (Ele), HRD, at Corporate offi ce is constantlymonitoring the complaints.‣ Mobile Phones have been provided to AEEs , EEEs, SEEs and CEEs.Hence, customers can directly contact any of the fi eld offi cers to getcomplaints attended immediately.‣ In each Assembly Constituency, a Vidyut Salaha Samithi is being constitutedon the basis of approved list received from GOK for redressal of consumergrievances. So far 10 such Samithies were constituted.36. MICRO FEEDER FRANCHISEES (GRAM VIDYUT PRATINIDHIS)Totally 1191 Micro Feeder Franchisees working in HESCOM to improve the RuralRevenue Collection by carrying out various activities such as :- Meter reading, billdistribution and Revenue Collection, Depositing the collection with utility, Registeringcomplaints and forwarding to utility, Facilitating utility in attending the grievance of lowtension consumers [LT-1, LT-2, LT-3, LT-4, and LT-5 up to 40 HP] & Giving feedbackabout fi eld realities to the utility on regular basis.Total No. of Gram Panchyats 1242No. of MFF working 1191Total Base Line Target for the F.Y 2010-11Total Revenue CollectionRs. 145.50 Crs.Rs. 130.06 Crs.Collection Effi ciency (Collection v/s baseline*100) 89.38%41 9th Annual Report 2010-11

37. CORPORATE GOVERNANCEThe Board of HESCOM believes and supports Corporate Governance practicesensuring observance of these principles in all its dealings.As on the date of AGM, the Board of Directors comprised of 12 members. All theDirectors take active part in the proceedings of Board and Sub- Committee meetingswhich add value to the decision making process. The non-functional directors receivesitting fees for Board/Sub-committee meetings attended by them.(a) Board Meetings:The meetings of the Board of Directors are scheduled in advance,for which notice is given to each Director in writing. The agenda andother relevant notes are circulated to the Directors in advance. During2010-11 a total number of 3 Board meetings took place as follows:Sl.No. Meeting No. Held on1 41 st Meeting 4 th August 20102 42 nd Meeting 3 th October 20103 43 rd Meeting 19 th February 2011Following is the list of Directors on the Board of HESCOM as on the date of AGMSl. Name of the Directors DesignationNo. Sriyuths:1. Shamim Banu.M, I.A.S. Chairperson2. Pankaj Kumar Pandey, I.A.S. Managing Director3. P K Garg, I.P.S. Director4. M.Naveen Kumar, IA & AS. Director5. B.S.Ramaprasad, I.A.S. Director6. D.Randeep, I.A.S. Director7. Dr. P.Boregowda, K.A.S. Director8. Chikkananjappa Director (Technical)9. H.R.Nagendra Director10. M.A.Hussain Director11. L.Ravi Director12. M.Nagaraju DirectorHubli Electricity Supply Company Limited 42

(b) Board Sub-Committees:The Sub-Committees of the Board were constituted to give more focused attention onimportant issues.1. Central Purchases Committee:Central purchases Committee was formed to consider all cases of purchaseswhether for Projects or award of Station/Line works or any other works andall matters relating to such purchases which are beyond the powers delegatedto the Managing Director.The composition of Central Purchases Committee as on the date of AGM is asfollows:1 Managing Director, HESCOM Chairman2 Director (Technical), HESCOM Member3 Dr.P. Boregowda Member4 Sri.H.R.Nagendra MemberDuring 2010-11 a total number of four CPC meetings took place, the details ofwhich are as follows:Sl.No. Meeting No. Held on123428 th Meeting29 th Meeting30 th Meeting31 st Meeting28 th May 201030 th November 201017 th January 20113 rd February 20112. Borrowings Sub Committee:The Borrowings Sub-Committee was constituted to borrow long-term loans fromBanks/Financial Institutions on behalf of the Board from time to time.The Sub-Committee consists of the following members:1. Chairperson, HESCOM2. Managing Director, HESCOM3. Director (Technical), HESCOM43 9th Annual Report 2010-11

3. Audit CommitteeAudit Committee was formed on 6 th June 2005 in accordance with the provisionsof the Companies Act. The composition of Audit Committee as on the date of AGM isas below1 M. Naveen Kumar, Director, HESCOM : Chairman2 Director (Technical), HESCOM : Member3 Dr.P.Boregowda, Director, HESCOM : MemberDuring the year under report, the Audit Committee met twice as follows.Meeting No.14 th Meeting15 th MeetingHeld on7 th August 201015 th September 2010The Audit Committee has adequate powers and Terms of Reference to play aneffective role as mentioned in Companies Act, 1956 which includes:1.2.3.4.5.6.7.8.9.Discussions with the Auditors periodically about internal control system and thescope of audit including observations of the auditors.Review of the half-yearly and Annual Financial statements before submission tothe Board.Review of annual capital, revenue and store budgets before being placed beforethe Board for approval.Review of programmes of fi nalization of annual accounts for timely completion ofaudit and approvalsReview of adequacy of internal controls – to review reports on inventory, completionreports of capital works, standards and specifi cations wherever applicable.Review of Internal Audit parasReview of AG Audit parasReview of disciplinary casesReview of Vigilance activities. MRT, TAQC Wings and write offs10. Review of power purchase cost11. Review of borrowings12. Discussions with Statutory Auditors and Cost Auditors regarding their reports.Hubli Electricity Supply Company Limited 44

38.39.40.41.13.14.15.Ensure compliance of internal control systems.Financial and Risk Management Policies and Fraud and Fraudulent RisksAny other matters as may be referred to by the Board.Meetings are scheduled well in advance. The Audit Committee considersand recommends the fi nancial results to the Board. The Statutory Auditors,Financial Adviser and Controller (Internal Audit) are invited to attend themeeting.DIRECTORS’ RESPONSIBILITY STATEMENT :Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956 theDirectors based on the information received from the Operating management, confi rmthat:a)b)c)d)In the preparation of the annual accounts, the applicable accounting standardshave been followed along with proper explanation relating to material departures.Accounting policies have been selected and applied consistently and judgmentsand estimates are made that are reasonable and prudent so as to give a true andfair view of the state of affairs of the company at the end of the fi nancial year andof the profi t or loss of the company for the period;Proper and suffi cient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of this Act for safeguardingthe assets of the company and for preventing and detecting frauds and otherirregularities; andAnnual accounts have been prepared on a going concern basis.AUDITORS:The C & AG of India, New Delhi have appointed M/s Vijay Panchappa & Co., Dharwadas Statutory Auditors of HESCOM for the year 2010-11.M/s. GNV & Associates, Bangalore are the Cost Auditors of HESCOM for the year2010-11.PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A):The information under section 217(2A) of Companies Act 1956, read with Company(Particulars of Employee) Rules, 1976 may be taken as NIL.ACKNOWLEDGEMENTS:The Board would like to place on record its earnest gratitude towards the Company’sesteemed consumers for the support and confi dence displayed by them in theorganization and anticipate the same relationship in the years to come.45 9th Annual Report 2010-11

The Board also gratefully acknowledges the support and guidance extended by Ministryof Power, Govt. of India, Energy Department, GoK, Karnataka Power TransmissionCorporation Limited, PCKL, other ESCOMs, KERC & CERC in Company’s operationsand developmental plans.The Board also expresses its gratitude to Comptroller and Auditor General of India,Statutory Auditors, Cost Auditors, State Bank of India, Canara Bank, Syndicate Bank,State Bank of Mysore, Vijaya Bank, Bank of India, Corporation Bank, REC Ltd., PFCLtd., Ministry of Corporate Affairs, Registrar of Companies for their co-operation andactive support to HESCOM in our endeavor to serve the public. The Board wouldalso like to place on record its appreciation for the dedicated and committed servicerendered by the employees of the company and co-operation extended by the Union /Associations.For & on behalf of the Board of Directors,Sd/-CHAIRMAN (Elected)Hubli Electricity Supply Company Limited 46

Auditors’ ReportAuditors’ Report to theThe Members of HUBLI ELECTRICITY SUPPLY COMPANY LIMITED, HUBLI.1] We have audited the attached Balance Sheet of Hubli Electricity Supply CompanyLimited, as at March 31, 2011 and also the Profi t and Loss Account and the CashFlow Statement for the year ended on that date annexed thereto. These FinancialStatements are the responsibility of the Company’s Management. Our responsibility isto express an opinion on these Financial Statements based on our audit. The BalanceSheet and Profi t & Loss Account approved by the Board of Directors on 11 th August,2011 and reported by us on 11 th August, 2011 have been revised in the light of theobservations arising from the audit by the Comptroller and Auditor General of India.This report supersedes our report dated 11 th August, 2011.2] We have conducted our audit in accordance with the auditing standards generallyaccepted in India. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the fi nancial statements are free of materialmisstatement. An audit includes examining, on a test basis, evidences supporting theamounts and disclosures in the fi nancial statement. An audit also includes assessingthe accounting principles used and signifi cant estimates made by management, aswell as evaluating the overall fi nancial statement presentation. We believe that ouraudit provides a reasonable basis for our opinion.3] As required by the Companies (Auditor’s Report) Order, 2003 issued by the CentralGovernment of India in terms of sub-section (4A) of section 227 of the Companies Act,1956, we enclose in the Annexure a statement on the matters specifi ed in paragraphs4 and 5 of the said Order.4] Further to our comments in the Annexure referred to above, we report that:(i)we have obtained all the information and explanations, which to the best of ourknowledge and belief were necessary for the purpose of our audit;47 9th Annual Report 2010-11

(ii)(iii)(iv)in our opinion, proper books of account as required by law have been kept by theCompany so for as appears from our examination of those books.the Balance Sheet, Profi t and Loss account and Cash Flow Statement dealt with bythis report are in agreement with the books of account.in our opinion, the Balance Sheet and Profi t & Loss account dealt with by this reportcomply with the Accounting Standards referred to in sub-section (3C) of section211 of the Companies Act, 1956 except the following:a. Basis of Accounting: Attention is called to clause No. 1 of the Signifi cantAccount Policies and Notes to Accounts, wherein the Company hasstated that all incomes and expenditures having a material bearing on thefi nancial statements have been recognized on accrual basis, except in respectof provision of interest on belated payments to private power suppliers,where interest would be recognized on payment basis. The effect of thispolicy has resulted in loss of the Company being understated by Rs.26.22 Crores and liability being understated by Rs. 26.22 Crores.b. Valuation of Inventories: Attention is called to clause No.5 of the Signifi cantAccounting Policies and Notes to Accounts, wherein the Company has statedthat it has followed the Standard rate, determined by the Company, based onthe previous purchase price and prevailing market rates in valuing inventories,which is not in accordance with Accounting Standard 2. The accountingstandard prescribes that the inventories should be valued at the lower of thecost or net realizable value. We are unable to quantify the difference in thelower of the cost price or net realizable value and the standard rate adoptedby the Company and its effect on the fi nancial performance and position of theCompany.c. Fixed Assets Accounting: Attention is called to clause 2 of the Signifi cantAccounting policies forming part of the Notes to Accounts and the BalanceSheet, wherein the policy states that the fi xed assets are shown at theirhistorical costs with corresponding accumulated depreciation. Also clause4 is called to attention for the valuation of Capital Work-in-progress. TheCompany-generated assets are accounted through Capital Work-in-progress,which is valued at standard rate, which is not in accordance with AccountingHubli Electricity Supply Company Limited 48

Standard 10. Hence in our opinion the accounting for valuation of CapitalWork-in-progress and fi xed assets by the Company is not in accordance withAS 10. We are unable to quantify the difference in the value of fi xed assets dueto this and its effect on the fi nancial statements.Further in clause 2.5 of the Signifi cant Accounting Policies forming part ofthe Notes to Accounts and the Balance Sheet, it is stated that releasedassets are valued at W.D.V, scrapped assets are valued at scrap rate,which is not in accordance with Accounting Standard -10.d. The Company has been providing depreciation on its depreciable assets atthe rates prescribed by the KERC/CERC, as more specifi cally stated atclause 3.1 of the Signifi cant Accounting Policies and Notes Forming Part ofthe Accounts. These rates are in variation with the rates prescribed under theCompanies Act and also as per AS-6. We are unable to quantify the fi nancialeffect, on this account on the fi nancial statement of the Company for the yearunder audit.e. In few of the cases loan sanction letters in respect of loans obtained bythe Company through KPTCL, which stand classifi ed as ‘Unsecured Loans’in the Balance Sheet. All these loans were originally availed by the KPTCL,Bangalore and subsequently transferred to HESCOM. But interest and loanrepayment obligations are borne by KPTCL and corresponding journal entriesare passed by the Company in receivable / payables. An amount of Rs. 14.79Crores has been accounted during the year towards interest.(v)(vi)According to the Notifi cation No: 2/5/2001-CL.V Dated: 22.03.2002 of Departmentof Company Affairs, the provisions of Section 274(i)(g) of the Companies Act, 1956are not applicable to the Company.The transactions between accounting units within the Company are accounted asInter Unit Accounts (IUA). The Inter Unit Accounts shows net balance of Rs.5.33Crores (debit) as on 31/03/2011, which is yet to be reconciled and are subjectto review / reconciliation / confi rmation and consequential adjustments thereof, ifany.49 9th Annual Report 2010-11

(vii)Attention is invited to clause 6 of the Notes to accounts, wherein the Companyhas stated that the balances in respect of Sundry Debtors, Sundry Creditors andLoans and Advances to suppliers and others are subject to confi rmation since theCompany is having large customer base. In the absence of these confi rmations,we are unable to comment on the accuracy of the amounts payable / receivablefrom these Institutions / Parties.Subject to the above:In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts give the information required by the Companies Act, 1956,in the manner so required and give a true and a fair view, in conformity with the AccountingPrinciples generally accepted in India,(a) in the case of the Balance Sheet, of the State of Affairs of the Company as at 31 stMarch, 2011 ;(b) in the case of the Profi t and Loss Account, of the Loss for the year ended on that date;and(c) in the case of Cash Flow Statement, of the Cash fl ows for the period ended on thatdate.Place : HubliDate : 20.09.2011For Vijay Panchappa & Co.Chartered AccountantsSd/-(CA. P.M. Mudigoudar)PartnerMembership No. 204096Firm Regn. No. 004693SHubli Electricity Supply Company Limited 50

ANNEXURE TO AUDITOR’S REPORT OFHUBLI ELECTRICITY SUPPLY COMPANY LIMITEDREFERRED TO PARAGRAPH 3 OF OUR REPORT OF EVEN DATE:(i)(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fi xed assets. Title Deeds of the propertiestransferred by KPTCL are reported to have been obtained.(b)(c)According to information given to us, assets have not been physically verifi ed bythe management during the year and there is no regular program of verifi cation.Hence, we are unable to comment on the physical existence of all the fi xed assetsshown in Financial Statements.The Company has not disposed of any substantial part of its fi xed assetsso as to affect its going concern status.(ii)(a) As explained to us, inventories have been physically verifi ed during the yearby the management. In our opinion, the system of verifi cation followed by themanagement needs to be strengthened with respect to frequency and coverage.(iii)(iv)(b)(c)(a)(a)Subject to (a) above, the procedures of physical verifi cation of inventories followedby the management are reasonable and adequate in relation to the size of theCompany and the nature of its business.As informed to us physical verifi cation of the Inventories have been carried out atthe Divisional level where the inventories are located. The respective Divisionshave maintained proper records of inventories. The discrepancies noticed onsuch physical verifi cation have been properly dealt with in the books of accounts.The procedures followed at the Divisional levels for such physical verifi cation are,in our opinion, reasonable in relation to the size of the Company and the natureof its business.The Company has not granted any loans, secured or unsecured, to Companies,Firms or Other parties listed in the registered maintained under Section 301 ofthe Act. Accordingly, paragraphs 4(iii)(b), (c) and (d) of the Order are notapplicable.The Company has not taken any loans, secured or unsecured from Companies,Firms or other parties listed in the register maintained under section 301 of the Act.Accordingly, paragraphs 4(iii)(b), (c) and (d) of the Order are not applicable.51 9th Annual Report 2010-11

(v)a) In our opinion and according to the information and explanations given to us,there are adequate internal control procedures commensurate with the size ofthe Company and the nature of its business with regard to purchases of inventoryand fi xed assets. As with regard to the revenue from sale of power and itscollection etc., the internal control procedures needs, system’s streamlining andstrengthening and proper accountability at all levels.b) As per the provisional energy audit report, conducted by the System ImprovementCell, Distribution loss is @ 20.55% as per the notes to Accounts vide noteNo.15.(vi) (a)According to the information and explanations given to us, we are of the opinionthat the transactions that need to be entered into the register maintained undersection 301 of the Companies Act, 1956 have been so entered.(b) In our opinion and according to the information and explanations given to us,the transactions made in pursuance of contracts or arrangements entered in theregister maintained under section 301 of the Companies Act, 1956 and exceedingthe value of rupees fi ve lakhs in respect of any party during the year have beenmade at prices which are reasonable having regard to prevailing market prices atthe relevant time.(vii)(viii)(ix)(x)The Company has not accepted any deposits from public.The Company has an in-house Internal Audit Department, which conducts InternalAudit at all levels. However, the nature and scope of the Internal Audit needs tobe identifi ed and expanded to commensurate with the nature and size of thebusiness of the Company. Accordingly, the manpower has to be increased tostrengthen the Internal Audit Department to commensurate with the nature andsize of the business of the Company.Maintenance of cost records has been prescribed by the Central Government tothe Company under Section 209 (1)(d) of the Companies Act, 1956 and are ofthe opinion that prima facie the prescribed accounts and records have beenmade and maintained. However we have not made a detailed examinationof the records.(a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund, Income tax, Value Added tax, ServiceTax, Wealth tax, Custom duty, Excise duty, Cess and other material statutorydues applicable to it..Hubli Electricity Supply Company Limited 52

(b)According to the information and explanations given to us, no undisputed amountspayable in respect of Provident Fund, Income tax, Wealth tax, Fringe Benefi tTax, Value Added tax, Service tax, Customs duty, Excise duty and other materialstatutory dues were in arrears, as at 31 st March 2011 for a period of more than sixmonths from the date they became payable.(xi)(xii)(xiii)(xiv)(xv)(xvi)(xvii)(xviii)(xix)The Company had accumulated losses of Rs. 723.79 Crores as at the end of thefi nancial year ending on 31.03.2011.According to the records of the Company examined by us and information andexplanations given to us, the Company has not defaulted in repayment of dues tofi nancial institutions and banks as at the Balance Sheet date.The Company has not granted loans and advances on the basis of security byway of pledge of shares, debentures and other securities.The Company is not a Chit fund or a Nidhi mutual benefi t fund / society. Therefore,the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003are not applicable to the Company.The Company is not dealing in or trading in shares, securities, debentures andother investments. Accordingly, the provisions of clause 4(xiv) of the Companies(Auditor’s Report) Order, 2003 are not applicable to the Company.The Company has not given any guarantee for loans taken by others from bankor Financial Institutions, the terms and conditions whereof are prejudicial to theinterest of the Company.In our opinion and according to the information and explanations given to us, onan overall basis, the term loans have been applied for the purpose for which theywere raised.On the basis of overall examination of the Balance Sheet of the Company in ouropinion and according to the information and explanations given to us, fundsraised on short-term basis have not been used for long-term investment and nolong-term funds have been used to fi nance short-term assets.According to the information and explanations given to us, the Company has notmade preferential allotment of shares to parties and companies covered in theregister maintained under section 301 of the Act.53 9th Annual Report 2010-11

(xx)(xxi)(xxii)According to the information and explanations given to us, during the periodcovered by our audit report, the Company has not issued any debentures.The Company has not raised any money by Public issue, during the year.With respect to misappropriation of Rs.1.2 crores pertaining to RGGVY worksin Indi Division reported during previous year report has been increased toRs.4.06 crores as per the latest assessment by the investigation team. Thecomplete investigation is under process. However, we observe that the processof investigation and fi xing of the responsibility and taking the requisite recovery/punitive action needs to be speeded up.We are unable to comment on the nature and the quantum of the amount to beprovided in the accounts at this stage pending investigation in regard to therecoverability of the amounts involved.For and behalf ofVijay Panchappa & Co.,Chartered AccountantsPlace: HubliDate: 20.09.2011Sd/-(CA. P.M. Mudigoudar )PartnerMembership No. 204096Firm Regn. No. 004693SHubli Electricity Supply Company Limited 54

ADDENDUM TO DIRECTORS REPORT FOR THE YEAR ENDED31ST MARCH -2011FOLLOWING REMARKS ARE OFFERED ON THE OBSERVATIONS/COMMENTS OF THE STATUTORY AUDITORS ON THEACCOUNTS FOR 2010-11.Observations of Statutory Auditors4(iv) a) Basis of Accounting: Attention is calledto clause No. 1 of the Signifi cant AccountPolicies and Notes to Accounts, wherein theCompany has stated that all incomes andexpenditures having a material bearing on thefi nancial statements have been recognized onaccrual basis, except in respect of provisionof interest on belated payments to privatepower suppliers, where interest would berecognized on payment basis. The effectof this policy has resulted in loss of theCompany being understated by Rs. 26.22Crores and liability being understated byRs.26.22 Crores.b) Valuation of Inventories: Attention is calledto clause No.5 of the Signifi cant AccountingPolicies and Notes to Accounts, whereinthe Company has stated that it has followedthe Standard rate, determined by theCompany, based on the previous purchaseprice and prevailing market rates in valuinginventories, which is not in accordance withAccounting Standard 2. The AccountingStandard prescribes that the inventoriesshould be valued at lower of the cost priceor net realizable value and the standardrate adopted by the Company and its effecton the fi nancial performance and position ofthe Company.Management’s ReplyFactual. However, Provisionfor accrued interest on belatedpayments to private powersuppliers have been accountedwherever the Company hasrecognized such claims.The Generation and consumption ofElectricity have to be simultaneousand instantaneous. Therefore,there would be no inventory offi nished and work in progress. Theinventories generally comprisematerials, stores and supplies.Inventories are valued at standardrate, which is determined fromtime to time based on previouspurchase rate and prevailingmarket rates. The standard raterepresents approximately theactual cost. Hence, there would beno greater fi nancial implication dueto non-compliance of AS-2.55 9th Annual Report 2010-11

Observations of Statutory Auditorsc) Fixed Assets Accounting: Attention is calledto clause 2 of the Signifi cant Accountingpolicies forming part of the Notes to Accountsand the Balance Sheet, wherein the policystates that the fi xed assets are stated atcost of acquisition or construction lessaccumulated depreciation. Also clause 4 iscalled to attention for the valuation of CapitalWork-in-progress. The Company-generatedassets are accounted through Capital Workin-progress,which is valued at standard rate,which is not in accordance with AccountingStandard 10. Hence in our opinion theaccounting for valuation of Capital Work-inprogressand fi xed assets by the Companyis not in accordance with AS 10. We areunable to quantify the difference in the valueof fi xed assets due to this and its effect onthe fi nancial statements.Further, in clause 2.5 of the Signifi cantAccounting Policies forming part of theNotes to Accounts and the BalanceSheet, it is stated that released assetsare valued at W.D.V , scrapped assetsare valued at scrap rate, which isnot in accordance with AccountingStandard -10.Management’s ReplyHowever, efforts are being madeto comply with the AccountingStandards in consultation with theDirector (F), KPTCL, B’lore.All the provisions enunciated inAS-10 are being followed by thecompany except valuation ofCapital work in progress, which isaccounted at standard cost. Sincethe standard rate representsapproximately the actual costthere would be meager fi nancialimplication as far as value of CWIPand fi xed assets are concerned.The provision of ESAAR 1985is being followed for valuation ofCWIP/ Fixed/Released/ScrappedAssets.Hubli Electricity Supply Company Limited 56

Observations of Statutory Auditorsd) The Company has been providing depreciationon its depreciable assets at the ratesprescribed by the KERC/CERC, as morespecifi cally stated at clause 3.1 of theSignifi cant Accounting Policies and NotesForming Part of the Accounts. These ratesare in variation with the rates prescribedunder the Companies Act and the rulesmade there under. We are unable to quantifythe fi nancial effect, on this account on thefi nancial statement of the Company for theyear under audit.e) In few of the cases loan sanction letters inrespect of loans obtained by the Companythrough KPTCL, which stand classifi ed as‘Unsecured Loans’ in the Balance Sheet.All these loans were originally availed bythe KPTCL, Bangalore and subsequentlytransferred to HESCOM. But interest andloan repayment obligations are borne byKPTCL and corresponding journal entriesare passed by the Company in receivable /payables. An amount of Rs. 14.79 Croreshas been accounted during the year towardsinterest.Management’s Reply1. Section 616 (c) of the Companiesact,1956 prescribes that whereCompanies are governed by specialActs, the provisions of CompaniesAct shall apply except in so far assaid provisions are inconsistent withthe provisions of Special Act.2. Electricity Act, 2003 is a SpecialAct promulgated for the electricitysector.3. With the promulgation of ElectricityAct, 2003, Electricity (Supply) Act of1948 was repealed while the ESAARhas been saved by virtue of Sec.185of the new Act of 2003. As such, theprovisions of ESAAR are applicable.4. HESCOM is required to followthe provisions of Electricity(Supply) Annual Accounts Rules,1985(ESAAR) issued under Sec.69(1) of the Electricity (Supply) Act,1948.5. Hence, the action of the Companyis in order as per Section 616 (c) ofthe Companies Act, 1956.Factual57 9th Annual Report 2010-11

Observations of Statutory Auditors4(v) According to the Notifi cation No: 2/5/2001-CL.V Dated: 22.03.2002 of Department ofCompany Affairs, the provisions of Section274(i)(g) of the Companies Act, 1956 are notapplicable to the Company.Management’s ReplyFactual4(vi)4(vii)The transactions between accountingunits within the Company are accounted asInter Unit Accounts (IUA). The Inter UnitAccounts shows net balance of Rs.5.33Crores (debit) as on 31/03/2011 whichis yet to be reconciled and are subject toreview / reconciliation / confi rmation andconsequential adjustments thereof, if any.The attention is invited to clause 6 of theNotes to accounts, wherein the Company hasstated that the balances in respect of SundryDebtors, Creditors, Loans and advancesetc., are subject to confi rmation since theCompany is having large customer base. Inthe absence of these confi rmations, we areunable to comment on the accuracy of theamounts payable / receivable from theseInstitutions / Parties.FactualFactualFor & on behalf of the Board of Directors,Sd/-CHAIRMAN (Elected)Hubli Electricity Supply Company Limited 58

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIAUNDER SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OFHUBLI ELECTRICITY SUPPLY COMPANY LIMITED, HUBLI FOR THE YEAR ENDED 31MARCH 2011.The Preparation of fi nancial statements of HUBLI ELECTRICITY SUPPLYCOMPANY LIMITED, HUBLI, for the year ended 31 March 2011 in accordance with thefi nancial reporting framework prescribed under Comapnies Act, 1956 is the responsibility ofthe management of the Company. The statutory auditors appointed by the Controller andAuditor General of India under Section 619(2) of the Companies Act, 1956 are responsiblefor expressing opinion on these fi nancial statements under section 227 of the ComapniesAct, 1956 based on independent audit in accordance with the auditing and assurance standardsprescribed by their professional body the Institute of Chartered Accountants of India.This is stated to have been done by them vide their Audit Report dated 20 SEPTEMBER2011.I, on behalf of the Comptroller and Auditor General of India, have conducted asupplementary audit, under section 619(3)(b) of the Companies Act, 1956, of the fi nancialstatements of HUBLI ELECTRICITY SUPPLY COMPANY LIMITED, HUBLI, for theyear ended 31 March 2011. This supplementary audit has been carried out independentlywithout access to the working papers of the statutory auditors and is limited primarily toinquiries of the statutory auditors and company personnel and a selective examination ofsome of the accounting records. In view of the revisions made in the fi nancial statementsby the management, as a result of my audit observations highlighted during supplementaryaudit as indicated in the Note No. 48 of the Notes forming part of Accounts (Schedule 25),I have no further comments to offer upon or supplement to the Statutory Auditor’s ReportSection 619(4) of the Companies Act, 1956.BANGALOREDATED: 22 September 201159 9th Annual Report 2010-11

BALANCE SHEET AS AT MARCH 31ST 2011Sl.No.ParticularsSchNo.A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)ISOURCES OF FUNDS:-1Share holders FundsShare Capital152.3012,33,33,61,0002,33,33,61,000Share Deposit1A52.302 ,52.3074,00,34,31,3783,29,91,31,3782Reserves and SurplusLoans Funds255 to 58(6,82,14,821)6,26,85,77,557(6,00,69,662)5,57,24,22,716Unsecured Loans351 to 54.42,10,89,15,9032,45,91,23,807secured LoansOther Funds3A53.307&54.20013,26,54,39,62415,37,43,55,52714,71,33,10,24717,17,24,34,0543Service Line andSecurity Deposits447 & 483,75,62,60,85434,76,66,72,09TOTAL25,39,91,93,93826,22,15,23,979IIAPPLICATION OF FUNDS :-1Fixed Assets510 to 13(a) Gross Block27,65,73,32,13826,33,15,33,032(b) Less: Capital Grantsand ConsumerContributions towardscost of Capital Assets2A556,21,55,82,0995,79,05,65,092(c) Accumalated Depreciation5(7,71,41,92,101)7,00,32,11,072)(d) Net Block13,72,75,57,93813,53,77,56,868(d) Increase in foreigncurrency liabilities (Net)2(e) Capital Work in ProgressInvestments66A142025,84,78,7412,51,00,00013,98,60,36,6792,51,00,00033,32,89,2722,51,00,00013,87,10,46,1402,51,00,000Hubli Electricity Supply Company Limited 60

BALANCE SHEET AS AT MARCH 31ST 2011Sl.No.ParticularsSchNo.A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)3Current Assets, Loans andAdvances(a) Inventories, Stores & Spares& Work in progress72234,85,67,96934,41,52,966(b) Sundry Debtors823 & 28.115,65,56,40,43313,64,63,41,359(c) Cash and Bank balances924.110 -24.60533,36,90,17432,39,55,337(d) Loans and Advances1025 to 27and 2876,24,77,43463,73,10,566(e)Less:Other Assets1128.4 to28.825 &30 to 379,91,58,58,16227,01,62,34,1729,00,06,31,74023,95,23,91,9684Current Liabilities &Provisions1240, 41,42, 43,44, 46 &5022,86,62,04,51218,21,93,42,8035Net Current Assets4,15,00,29,6605,73,30,49,1656MiscellaneousExpenditure to the extent notwritten off / or adjusted23171,70,42715,18,2567Profi t and Loss Account27,23,78,57,1726,59,08,10,419TOTAL 25,39,91,93,938 26,22,15,23,979NOTES TO ACCOUNTS 25Note: Schedules 1 to 25 are forming part of Balance Sheet and Profi t & Loss A/c.Note:Estimated amount of contracts remaining to be executed on capital account and not providedfor as at 31.03.2011 is Rs.71.28 Crores.As per our report of even dateFor Vijay Panchappa & Co.Chartered AccountantsSd/- Sd/- Sd/- Sd/-(CA. P.M. Mudigoudar) (Pankaj Kumar Pandey, IAS) (Chikkananjappa) (R.R.Joshi)Partner Managing Director Director (Technical) Financial AdviserM.No.204096Place: HubliDate : 20.09.201161 9th Annual Report 2010-11

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED31ST MARCH 2011Sl.No.ParticularsSch.No.A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)AINCOMERevenue from sale ofpower136131,02,16,47,56622,77,58,74,291Other Income146217,87,50,66513,09,76,647TOTAL31,20,03,98,23122,90,68,50,938BEXPENDITUREPurchase of power157024,78,34,90,62517,90,51,32,175Repairs and maintenance167422,08,53,66123,38,58,336Employee Costs17753,06,01,17,2362,23,84,41,901Administrative and otherexpenses187645,39,96,18446,16,95,250Other Debits1977 & 798,09,61,3209,37,99,862TOTAL28,59,94,19,02620,93,29,27,525CPROFIT BEFOREDEPRECIATION ANDINTEREST(A-B)2,60,09,79,2051,97,39,23,413DDepreciation (Net)207789,48,57,96782,27,33,020EProfit BeforeInterest and Taxes1,70,61,21,2381,15,11,90,393FInterest and otherCharges(Net)21782,89,53,62,9002,70,18,21,576Add / Less:GPrior period credits /(debits)2465 & 8354,21,94,909(18,57,60,944)Hubli Electricity Supply Company Limited 62

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED31ST MARCH 2011Sl.No.ParticularsSch.No.A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)HProfit / (Loss) beforeTaxation(64,70,46,753)(1,73,63,92,127)Provision for Taxation228100Provision for Deferred Tax228100Fringe Benefi t Tax227600Total Provision forIncome Tax00INET PROFIT / (LOSS)(64,70,46,753)(1,73,63,92,127)Balance of profi t / (Loss)brought over from Previousyears(6,59,08,10,419)(6,59,08,10,419)(4,85,44,18,292)(4,85,44,18,292)Balance Carried toBalance Sheet(7,23,78,57,172)(6,59,08,10,419)NOTES TO ACCOUNTS: 25Note: Schedules 1 to 25 are forming part of Balance Sheet and Profi t & Loss A/c.As per our report of even dateFor Vijay Panchappa & Co.Chartered AccountantsSd/- Sd/- Sd/- Sd/-(CA. P.M. Mudigoudar) (Pankaj Kumar Pandey, IAS) (Chikkananjappa) (R.R.Joshi)Partner Managing Director Director (Technical) Financial AdviserM.No.204096Place: HubliDate : 20.09.201163 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 01 SHARE CAPITALSL.NOParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Authorised Capital25,00,00,000/-Equity shares ofRs. 10/- each2,50,00,00,0002,50,00,00,0002Issued, Subscribedand Paid upShares issued for considerationother than cash23,33,36,100/- EquityShares of Rs. 10/- eachFully paid-up.52.3012,33,33,61,0002,33,33,61,0002,33,33,61,0002,33,33,61,000Total 2,33,33,61,000 2,33,33,61,000SCHEDULE: 1A SHARE DEPOSITSL.NOParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Share Deposit52.3024,00,49,84,0803,30,06,84,0802Proposed adjustment toNetworth52.307(15,52,702)(15,52,702)4,00,34,31,3783,29,91,31,378Total 4,00,34,31,378 3,29,91,31,378Hubli Electricity Supply Company Limited 64

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 02 RESERVES AND SURPLUSSL.NO12Particulars A/c Code Current Year 2010-11(Amount in Rs.)Capital Reserve:Other Reserves56.20Previous Year 2009-10(Amount in Rs.)0a) Reserve forMaterials CostVariance56.6104,55,99,7935,08,88,666b) ProposedAdjustments toNetworth - Others52.308(11,38,14,614)(11,09,58,328)3SurplusProfi t and LossAccount00Total (6,82,14,821) (6,00,69,662)SCHEDULE: 02A CONTRIBUTIONS, GRANTS ANDSUBSIDIES TOWARDS COST OF CAPITAL ASSETSSL.NOParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1 Contributions, grantsand subsidies towardscost of Capital assetsa) Consumers contributiontowards cost of capital55.13,21,42,71,4682,57,78,84,561b) Grants towards Cost ofCapital assets55.33,00,13,10,6313,21,26,80,531Total 6,21,55,82,099 5,79,05,65,09265 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 03 UN-SECURED LOANSSl.No.ParticularsLoans FromFinancial Institutions:Avg.ROI (%)A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year2009-10(Amount in Rs.)1Loans from Banks-Energisation of IP sets10%53.303002Loans Released from GoKthrough KPTCL towardsPMGY works12%53.3074,62,31,0244,96,20,5903APDRP - GOK Loan Payableto KPTCL12%53.35065,26,81,82270,70,71,9744APDRP - REC Loan Payableto KPTCL9%53.3511,29,49,62,5581,54,48,73,9585Loan from Power FinanceCorporation Ltd., - KPTCL10%53.9607,96,55,49911,30,07,2856Loan from GOK towardsEnergisation of IP sets underGanga Kalyana Scheme.11%53.9802,62,50,0003,15,00,0007Loan from GOK towardsCentral Additional Assistanceto Power SectorAutomation9%53.98391,35,0001,30,50,0008Interest Free Loan fromGOK50.40100Total Un- Secured Loans 2,10,89,15,903 2,45,91,23,807Note: The above loans are drawn by KPTCL and transferred by adjustments and are repayable through KPTCL only and the details ofthe loan wise securities offered are not provided by KPTCL.Hubli Electricity Supply Company Limited 66

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 03A SECURED LOANSSl.No.AParticularsLoans FromFinancial Institutionsand BanksAvg.ROI (%)A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year2009-10(Amount in Rs.)1Loan from Syndicate Bank11%53.97721,61,00,00031,63,00,0002Loan drawn from State Bankof India Hubli by HESCOM11%53.9782,99,26,00,0003,54,70,00,0003Loan from Canara Bank,Hubli by HESCOM11%53.9813,25,43,00,0003,75,61,00,0004Loan from Corporation Bank11%53.98281,93,90,00097,49,98,0005Loan from Power FinanceCorporation LTD - R-APDRPScheme.11.5%53.96115,78,46,50015,78,46,5006Loans drawn from RECin respect of ongoing SPAScheme works by KPTCL forHESCOM.10%53.3144,60,90,31,1654,74,58,50,751BBorrowings for workingcapital :12,04,92,67,66513,49,80,95,2511Cash Credit from Banks(SBI Hubli)11%50.11,21,61,71,9591,21,61,71,9591,21,52,14,9961,21,52,14,996Total 13,26,54,39,624 14,71,33,10,247Note: The Company has offered Securities of its fi xed assets & Sundry debtors against the aboveloans.67 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 04 SERVICE LINE AND SECURITY DEPOSITSSl.No.ParticularsDeposits for:A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year2009-10(Amount in Rs.)1Electrifi cation / ServiceConnection47.35,47,32,8355,42,64,8962Other Deposits fromConsumers47.644,76,09,67941,94,05,3083Security Deposit fromconsumers:48.1 + 48.2 +48.33,25,39,18,3403,00,29,97,005Total 3,75,62,60,854 3,47,66,67,209Hubli Electricity Supply Company Limited 68

SCHEDULE : 05 FIXED ASSETSSchedule - 5 Gross Block (Amount in Rs.) Depreciation (Amount in Rs.) Net Block (Amount in Rs.)Asset Group A/cCodeAs at01/04/2010Additions Deductions As at31/03/2011A/cCodeAs at01/04/2010Additions Deductions As at31/03/2011As at01/04/2010As at31/03/2011Land & Rights 10.18,76,41,121 59,43,9151,87,200 9,33,97,836 12.10000 8,76,41,121 9,33,97,836Buildings10.2 58,86,39,227 5,32,96,70494,02,748 63,25,33,183 12.2 8,99,26,550 2,14,64,509 17,13,267 10,96,77,792 49,87,12,677 52,28,55,391Hydraulic Works 10.32,10,61,2797,63,10452,662 2,17,71,721 12.339,58,878 12,10,58713,49051,55,974 1,71,02,401 1,66,15,746Other Civil Works 10.41,83,05,257 13,45,9611,96,004 1,94,55,214 12.425,94,8348,30,12393,43033,31,527 1,57,10,423 1,61,23,687Plant & Machinery 10.5 5,72,58,37,325 96,04,18,647 75,68,91,460 5,92,93,64,512 12.5 1,38,99,91,588 31,97,81,890 17,28,29,622 1,53,69,43,856 4,33,58,45,737 4,39,24,20,655Lines CableNetworks10.619,78,65,66,0371,57,98,51,11850,69,80,17520,85,94,36,98012.65,44,81,59,41475,41,22,05521,24,90,1775,98,97,91,29214,33,84,06,62414,86,96,45,689Vehicles10.75,73,99,237 20,59,47536,09,702 5,58,49,010 12.7 4,58,91,474 25,22,758 32,47,767 4,51,66,465 1,15,07,763 1,06,82,545Furniture &Fixtures10.82,99,61,96236,82,01922,27,4253,14,16,55612.81,69,55,90022,38,71510,01,6421,81,92,9731,30,06,0611,32,23,583Offi ce Equipments 10.91,61,21,5879,67,61729,82,078 1,41,07,126 12.957,32,4345,26,664 3,26,87759,32,221 1,03,89,15381,74,905Total 26,33,15,33,032 2,60,83,28,560 1,28,25,29,454 27,65,73,32,138 7,00,32,11,072 1,10,26,97,301 39,17,16,272 7,71,41,92,101 19,32,83,21,960 19,94,31,40,038Previous Year 23,42,61,32,011 4,20,39,38,317 1,29,85,37,296 26,33,15,33,032 6,24,03,73,834 1,09,54,53,998 33,26,16,760 7,00,32,11,072 17,18,57,58,177 19,32,83,21,96069 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 06 CAPITAL WORKS IN PROGRESSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Capital Work in Progress14.110 To14.1506,13,61,36013,17,08,00014.151 To14.4014,60,90,4965,80,87,767Sub Total14.450 to14.8101,24,92,72611,99,44,5821,50,76,97020,48,72,7372Completed works(to be categorised).15.50013,85,34,15912,84,16,535Sub Total13,85,34,15912,84,16,535Grand Total 25,84,78,741 33,32,89,272SCHEDULE: 06 A INVESTMENTSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1OtherInvestmentsa)Investment, towards ShareCapital of M/s. PowerCompany of Karnataka Ltd.(PCKL) 20.271 2,51,00,000 2,51,00,000Grand Total 2,51,00,000 2,51,00,000Hubli Electricity Supply Company Limited 70

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE - 7 INVENTORIES, STORES AND SPARESSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Materials Transferred withinthe Division22.4504,27,21511,32,8042Materials Stock Account22.61021,46,86,20316,79,62,6563Material imprest Account22.6415,92,9629,87,8514Materials pending Inspection22.66070,58,44551,11,2726Other Materials Account22.7(5,48,67,150)(3,06,11,823)Materials stockExcess / ShortagePendingInvestigation.7Stock Excess pendingInvestigation.22.810(20,25,351)(18,13,552)8Stock Shortagepending investigation.22.82021,87,71516,80,60,03925,46,23014,53,15,437Assets not in use9Written down value (WDV) ofobsolete / scrapped assets.16.14,86,63,7084,80,03,87510Written down value (WDV) ofFaulty / Dismantled Assets.16.213,18,44,22218,05,07,93015,08,33,65419,88,37,529TOTAL 34,85,67,969 34,41,52,96671 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE: 8 SUNDRY DEBTORSSl.No.ParticularsRECEIVABLESAGAINST SUPPLYOF POWER.SecuredConsidered GoodA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Sundry Debtors for sale ofPower – LT23.19,09,24,29,7818,93,85,17,0452Sundry Debtors for sale ofPower - HT23.249,59,41,96652,60,38,9683Sundry Debtors forElectricity Tax23.317,62,36,64015,43,79,5924Provision for UnbilledRevenue23.41,21,56,14,64431,02,15,1345Provision for UnbilledRevenue23.457,64,59,08642,55,45,468Total UBR23.41,79,20,73,73073,57,60,6026Dues from Permanentlydisconnected consumers23.529,47,34,44742,14,92,2047Sundry debtors -miscellaneous dues fromconsumers (Interest onRevenue Arrears)23.74,81,79,07,8963,87,06,50,109Sub Total16,66,93,24,46014,64,68,38,5218Provision for withdrawal ofRevenue demand23.8(4,68,87,017)(3,58,95,655)9Provision for Doubtful Duesfrom consumers (CreditAccount)23.9(96,67,97,010)(1,01,36,84,027)(96,46,01,507)(1,00,04,97,162)Total (Net Receivables against Supplyof Power) 15,65,56,40,433 13,64,63,41,359Hubli Electricity Supply Company Limited 72

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 09 : CASH AND BANK BALANCESSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)ICash Accounts1) Cash, Cheques & DDs on Hand24.115,70,29,1693,38,76,2772) Postage stamps on hand24.122,86,3142,98,022Sub-Total5,73,15,4833,41,74,299IICash Imprest with Staff –AccountsImprest with Staff24.218,50,6008,50,6007,77,1507,77,150IIICollecting Bank Accounts(Non-Operative)24.34,45,04,6064,45,04,6064,69,11,2264,69,11,226IVDisbursement Bank Account(Operative)1) State Bank of Mysore24.40158,57,9251,41,98,5852) State Bank of India24.4022,12,42,0382,72,91,8553) Canara Bank24.4043,74,80,74226,75,3514) Syndicate Bank24.40511,40,10,9707,93,54,7855) Vijaya Bank24.4091,68,64,1796,82,59,5666) Bank of India24.42315,35,64210,24,1247) Corporation Bank24.4245,63,4645,63,4648) Axis Bank24.4252,93,16,1671,54,04,4269) ING Vysya Bank Ltd.24.42618,38,4250Sub-Total22,87,09,55220,87,72,156VRemittance to Head Office-Transit Account24.522,79,27022,79,2703,33,20,5063,33,20,506VITransfers from Head OfficeIn Transit Account24.630,66330,66300TOTAL 33,36,90,174 32,39,55,33773 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 10 : LOANS AND ADVANCES INCLUDING DEPOSITSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)ILOANS AND ADVANCES1) Advances to Suppliers(considered good & FullySecured)25.1 To 25.52,64,3347,09,9882) Advances to Contractors26.635,21,89,78943,49,44,333IIa) Loans and advances toStaff - Interest bearing1) Marriage27.1032,7204,4802) Computer Advance27.1060780b) Loans and Advances to Staff -Interest free27.22,62,70,1452,52,16,441IIIAdvance Income Tax andTax deductions at source27.420,56,39211,66,849IVLoans and advances –Others27.815,69,95825,10,68338,23,53,33846,45,53,554VIDeposits28.9 38,01,24,09617,27,57,01238,01,24,09617,27,57,012Total 76,24,77,434 63,73,10,566Hubli Electricity Supply Company Limited 74

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 11 : OTHER ASSETSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Amounts Recoverable fromEmployees & deposit withothers28.1 &28.46,50,95,6986,50,95,6986,66,78,8826,66,78,8822Income Accrued (Interest)28.277,60,72577,60,72516,50,35116,50,3513Subsidy / Grants ReceivableAmount receivable from Govermentagainst waiver of IP sets dues inrespet of IP sets Consumers who havepaid the IP sets Dues during the year2001-02 and 2002-03.28.628.61439,39,99,5930Amount Receivable from GOK towardswaiver of BJ/KJ Arrears as on31-12-2004.28.615(9,72,75,000)(9,72,75,000)Subsidy Receivable from GOK fi xedcharges concession to 10HP & belowIP sets.28.6177,5527,552R.E. Subsidy Receivable from Govt.towards Hukkeri Co-operative Society.28.62127,02,37,21327,02,37,213R.E. Subsidy/Grant Receivable fromGovt. towards R.E. Loss28.6203,41,98,85,7073,41,98,85,707Tariff Subsidy Recievble from Governmentof Karnataka towards IP sets.28.625(2,88,29,582)0Subsidy Recievble fromGovernment of Karnataka towards BJ/KJ Consumers (up to 18 units).28.626004Subsidy Recievble from Governmentof Karnataka towards Free PowerSupply to IP Sets up to 10 HP.Other ClaimsClaims for Loss / Damage toMaterials28.62728.723,92,23,16,2899,45,4227,88,03,41,7723,49,49,51,0529,45,4227,08,78,06,524Claims for Loss / Damage to CapitalAssets28.7480,32,98989,78,41176,47,15785,92,57975 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 11 : OTHER ASSETSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)5Other Receivables28.81,91,10,95,6521,91,10,95,6521,55,46,67,9011,55,46,67,901Cash Recievable from KPTCL andOther ESCOMs for Inter CompanyTransactions28.99,87,71,06315,40,59,393Amounts Receivable from GOIthrough RECL & LEC/Taluk Boardtowards KJ Works28.941 &28.942(5,82,41,711)(5,87,25,211)Advance paid to SPPCC towards UICharges/Administrative charges28.945 &28.9464,02,34,6468,07,63,9982,07,12,11411,60,46,29667Electrification of GangaKalyan Works - RecievableInter Unit Accounts :47.307to47.310(9,15,15,141)(9,15,15,141)11,34.99,41011,34,99,410Inter Unit Accounts Materials31.10 To31.30(4,43,56,762)(4,43,56,762)(4,84,95,360)(4,84,95,360)Inter Unit Account - CapitalExpenditure & Fixed Assets32.10 To32.501,08,30,0251,08,30,0252,76,45,6182,76,45,618Inter Unit Accounts -Remittances to Head Offi ce33.00035,05,69535,05,6951,02,9251,02,925Inter Unit Accounts - Funds transferfrom Head Offi ce34.00 To34.2600Inter Unit Accounts - Funds transferfrom Head Offi ce34.4 To34.688,24,77,66,953(61,89,88,200)Inter Unit Accounts - Funds transferfrom Head Offi ce34.7(88,24,77,67,053)(100)61,89,88,100(100)Second Transfer Scheme - KPTCL35.0000000Inter Unit Accounts -Personnel36.100 +36.200 +36.300(4,31,11,356)(4,31,11,356)(3,96,14,786)(3,96,14,786)Inter Unit Accounts - Othertransactions / adjustments37.100 +37.200 +37.30012,64,69,54512,64,69,54511,20,51,50011,20,51,5009,91,58,58,1629,00,06,31,740Note: The amount shown against Account Codes 28.941 & 28.942 are pending adjustments.Hubli Electricity Supply Company Limited 76

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)ILIABILITY FOR PURCHASE OFPOWERaSundry Creditors for purchase ofpower1Sundry Creditors for purchase of power -KPC41.1085,98,16,02,0044,40,79,18,2942Sundry Creditors for purchase of power-VVNL41.109003Sundry Creditors for purchase of power -NTPC-RSTP41.11015,03,0364,68,93,4624Sundry Creditors for purchase of power-MAPS41.111035,69,5945Sundry Creditors for purchase of power - NLC41.11230,01,02,10731,31,81,9576Sundry Creditors for purchase of power(Transmission Charges)- PGCIL41.113(80,83,080)3,29,88,3247Sundry Creditors for purchase of power-KAIGA41.11418,55,39,11828,28,36,8148Sundry Creditors for purchase of power-PGCIL41.11735,81,19,96113,60,36,9359Sundry Creditors for purchase of power -NTPC41.1191,92,04,489010Sundry Creditors for purchase of power MU-RUDESHWAR41.1232,37,25,0121,67,92,41811Sundry Creditors for Purchase of Power fromJTPCL41.12544,33,76,9376,25,60,10712Sundry creditors for purchase of power-Renuka Sagar41.1269,45,88,9612,53,15,03713Sundry Creditors for purchase of Power-Prabhulingeshwar41.130066,33,25014Sundry creditors for purchase of power-TannirBhavi Company ltd.,41.13313,06,5304,17,73,62077 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)15Sundry creditors for purchase of power- RSSKN.41.139016Sundry creditors for purchase of power-Vishwanath Sugurs Ltd.41.1401,89,11,1611,44,52,12317Sundry creditors for purchase of power- DhoodhGanga Krishna Sahakari Sakkare KarkhaneNiyamita.41.1417,00,36,45610,18,33,94018Sundry creditors for purchase of power-Tungabhadra Steel Product Ltd.41.14887,92,60052,13,72919Sundry Creditors for purchase of power-Jamkhandi Sugurs Ltd.,41.15333,30,058020Sundry Creditors for purchase of power- GEMSugurs Ltd.,41.1607,40,75,9497,79,48,28621Sundry Creditors for Transmission Charges -KPTCL41.1616,54,08,784(6,75,236)22Sundry Creditors for O&M Expenditure of SLDC.41.165(3,33,892)(3,33,892)23Sundry Creditors for purchase of power from M/sGodavari Sugurs Ltd.41.166(2,10,87,964)024Sundry Creditors for purchase of powerfrom M/s Venkateshwar Power Projects Ltd.,Kholapur41.1677,35,80,5522,67,67,12225Sundry Creditors for Purchase of PowerM/s Nandi sahakari sakkare karkhane NiyamitBijapur41.169010,09,67,69326Sundry Creditors for Purchase of PowerM/s MRP Wind Farms41.17011,45,0946,89,60027Sundry Creditors for Purchase of PowerM/s Bhagyanagar India Ltd.41.17151,23,18031,43,32528Sundry Creditors for Purchase of Power M/sSuresh Kumar (HUF)41.1728,74,2045,98,517Hubli Electricity Supply Company Limited 78

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)29Sundry Creditors for Purchase of PowerM/s Happy Valley Developers.41.17312,08,8836,93,68330Sundry Creditors for Purchase of PowerM/s VRL Logistics limited41.1743,71,00,6162,42,21,04931Sundry Creditors for Purchase of PowerM/s Revati Raju41.17530,41,35618,66,98932Sundry Creditors for Purchase of PowerM/s Nuziveedu Seeds41.17611,09,58930,95,82333Sundry Creditors for Purchase of PowerM/s VSL Mining Componay (P) Ltd.41.17754,05,13433,50,42534Sundry Creditors for Purchase of PowerM/s VSL Mining Projects(P) Ltd41.17821,55,58212,65,18635Sundry Creditors for Purchase of PowerM/s V S Lad & Sons41.17969,68,40541,34,06236Sundry Creditors for purchase of PowerM/s Shakhambhari Enterprises Banglore41.18011,43,3497,54,21037Sundry Creditors for Purchase of powerM/s BSK Trading Inc41.1819,95,0096,46,86338Sundry Creditors for Purchase of PowerM/s. Jindal Steels41.18211,52,0777,55,97039Sundry Creditors for Purchse of PowerM/s. Kashyap.J.Majethia41.18311,38,3326,93,05240Sundry Creditors for Purchse of PowerM/s.Vikram Traders41.18449,95,67244,33,80941Sundry Creditors for Purchse of PowerM/s.Rahul Dravid41.18517,29,24310,35,82142Sundry Creditors for Purchse of PowerM/s. Protectron Electromech Pvt. Ltd.41.1868,81,7615,55,64743Sundry Creditors for Purchse of PowerM/s.Kaleesuwari Refi nery Private Ltd41.1878,33,0045,30,58479 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)44Sundry Creditors for Purchse of PowerM/s. M.K.Agrotech Pvt Ltd41.1887,00,0163,95,29545Sundry Creditors for Purchse of PowerM/s. Cauvery Coffee Traders41.1897,28,1284,73,94146Sundry Creditors for Purchse of PowerM/s. Siddaganga Oil extraction Ltd41.1908,21,4645,15,29947Sundry Creditors for Purchse of PowerM/s.Compu Com Software Pvt Ltd41.192010,69,37248Sundry Creditors for Purchse of PowerM/s. Chandulal Surajlal41.193010,69,18449Sundry Creditors for Purchse of PowerM/s. G.Shoe Exports41.194010,86,98450Sundry Creditors for Purchse of PowerM/s. International Conveyors41.1956,79,1826,39,32751Sundry Creditors for Purchse of PowerM/s. Arts & Crafts Exports41.196013,65,90652Sundry Creditors for Purchse of PowerM/s. IGE India Ltd41.1978,40,7157,49,21953Sundry Creditors for Purchse of PowerM/s. Mayura Steels Pvt Ltd41.198013,65,92954Sundry Creditors for Purchse of PowerM/s. Shilpa Medicate Ltd Provision forLiability for Purchase of Power41.1997,74,28613,47,42955Provisions for Liability for purchase ofpower41.2007,74,02,14,2085,32,96,26,99456Sundry Creditors for Purchse of PowerM/s. S.Kumar41.2017113,06,14857Sundry Creditors for Purchse of PowerM/s. Shreem Capacitor41.20201,48,77058Sundry Creditors for Purchase of PowerM/s. Saptagiri Distilleries Pvt. Ltd.,41.20540,93,73618,79,42859Sundry Creditors for Purchase of PowerM/s.Pragathi Aroma Oil Distillers Pvt. Ltd.,41.20635,60,1395,36,618Hubli Electricity Supply Company Limited 80

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)60Sundry Creditors for Purchase ofPower M/s.Sanjay D. Ghodawat41.2071,53,40,5015,50,27561Sundry Creditors for Purchase ofPower M/s. MMTC Limited41.2082,17,51,9011,36,83,47062Sundry Creditors for Purchase ofPower M/s.Lovely Fragrance41.20911,71,367063Sundry Creditors for Purchase ofPower M/s. Bhoruka PowerCorporation Ltd.,41.2111,30,64,43278,05,95864Sundry Creditors for Purchase ofPower M/s. Bharat PetroleumCorporation Ltd.,41.21270,25,38931,86,50265Sundry Creditors for Purchase ofPower M/s.Indian Designs.41.21323,43,52413,95,98866Sundry Creditors for Purchase ofPower M/s.B.D.Patil & Co.,41.21415,24,3768,96,12967Sundry Creditors for Purchase ofPower M/s. Hindustan Zinc Ltd.,41.2153,93,97,1802,45,94,04668Sundry Creditors for Purchase ofPower M/s.Generacion Eolica IndiaPvt. Ltd.,41.2163,79,83,0512,38,64,72069Sundry Creditors for Purchase ofPower M/s.R.B.Seth ShreeramNarsingdas.41.2176,75,2916,09,27970Sundry Creditors for Purchase ofPower Shri. Suresh C Angadi41.2182,48,1881,64,53571Sundry Creditors for Purchase ofPower Smt. Mangala S Angadi.41.2192,29,0761,40,80672Sundry Creditors for Purchase ofPower M/s. Swani Corporation Ltd.,41.2202,23,2821,39,62581 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)73Sundry Creditors for Purchase of PowerM/s. Fastners & Allied Products (P) Ltd.,41.22101,23,38874Sundry Creditors for Purchase of PowerM/s. Mysore Engineers (India) (P) Ltd.,41.2223,80,4592,35,72875Sundry Creditors for Purchase of PowerM/s. C.R.Rajesh Nair.41.2235,91,0283,74,23776Sundry Creditors for Purchase of PowerM/s.Bharat Earth Mover41.22551,15,15734,62,42477Sundry Creditors for Purchase of PowerM/s. S.C.Shettar & Sons41.2268,71,0266,32,07978Sundry Creditors for Purchase of PowerM/s. KMMI Steels Pvt Ltd41.22722,17,12413,76,19479Sundry Creditors for Purchase of PowerM/s. Sai Krishna Minerals Pvt Ltd.41.22837,57,83523,19,41980Sundry Creditors for Purchase of PowerM/s. ILC Industries Ltd.41.22933,76,74323,88,65481Sundry Creditors for Purchase of PowerM/s. B.S.C Textils41.2302,48,5291,08,75282Sundry Creditors for Purchase of PowerM/s.Sridevi Trading Company.41.2311,34,35292,81483Sundry Creditors for Purchase of PowerM/s. B.S.Channabasappa & Sons41.2328,33,0533,94,14284Sundry Creditors for Purchase of PowerM/s.BC & Sons41.2331,22,40157,63085Sundry Creditors for Purchase of PowerM/s.Shri Channeshwar Rice Industries.41.2341,15,74853,11086Sundry Creditors for Purchase of PowerM/s.Channeshwar Drier41.2351,42,49379,889Hubli Electricity Supply Company Limited 82

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)87Sundry Creditors for Purchase ofPower M/s. Associated Stones41.2367,31,6754,29,82888Sundry Creditors for Purchase ofPower M/s.Ranjeet Bullion.41.2371,22,16638,93389Sundry Creditors for Purchase ofPower M/s.Bedmutha Wire Comp.41.2381,58,66474,49290Sundry Creditors for Purchase ofPower M/s.S.K.Shridhar41.2391,27,64653,22191Sundry Creditors for Purchase ofPower M/s. SK.Shashidhar.41.24096,85248,79392Sundry Creditors for Purchase ofPower M/s.DLF Ltd.41.2411,61,06,71298,31,16093Sundry Creditors for Purchase ofPower M/s.Swarna Properties41.24222,24,01415,33,20294Sundry Creditors for Purchase ofPower M/s.Swarna Constuction41.2432,38,7967,27,93495Sundry Creditors for Purchase ofPower M/s.Dakash Minerals & MarinePvt Ltd.41.2442,34,1751,42,27896Sundry Creditors for Purchase ofPower M/s. JSW Trading Company Ltd.41.2450097Sundry Creditors for Purchase ofPower M/s. Sadashiv Sugars Ltd.41.246034,18,10098Sundry Creditors for Purchase ofPower M/s. Hiranyakeshi SahakariSakkare Karkhane Niyamit41.24703,39,87,85099Sundry Creditors for Purchase ofPower M/s. Nirani Sugars Limited41.2484,11,78,6646,14,92,530100Sundry Creditors for Purchase ofPower M/s. Indian Cane Power Limited.41.24905,55,01,68083 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)101Sundry Creditors for Purchase ofPower M/s. Bilagi Sugars Limited.41.2501,83,66,7520102Sundry Creditors for Purchase ofPower M/s. Satish Sugars Limited.41.25100103Sundry Creditors for Purchase ofPower M/s. Global Energy Pvt. Ltd.41.25200104Sundry Creditors for Purchase ofPower M/s. GMR Industries Ltd.41.2537,80,39,3665,82,06,707105Sundry Creditors for Purchase ofPower M/s. Bhanwardeep CopperStrips Pvt. Ltd.41.2541,35,28275,496106Sundry Creditors for Purchase ofPower M/s. Kedia Enterprises.41.2553,12,9431,64,391107Sundry Creditors for Purchase ofPower M/s. JBM Industries.41.2561,43,94613,138108Sundry Creditors for Purchase ofPower M/s. Nagashanthi Enterprises.41.2571,41,98133,620109Sundry Creditors for Purchase ofPower M/s. Rachana Construc tions.41.2581,12,48733,446110Sundry Creditors for Purchase ofPower M/s.Skytech Engineering.41.25980,93738,980111Sundry Creditors for Purchase ofPower M/s. Basavaraj N.Patil41.2601,49,64076,721112Sundry Creditors for Purchase ofPower M/s. Prasanna K. Giriyapur.41.26157,74697,066113Sundry Creditors for Purchase ofPower M/s. G. N. Chandu (HUF)41.2623,82,3151,08,963114Sundry Creditors for Purchase ofPower M/s. Dr. G.N. Chandu41.263094,150115Sundry Creditors for Purchase ofPower M/s. Madhura C.41.26401,03,002Hubli Electricity Supply Company Limited 84

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)116Sundry Creditors for Purchase ofPower M/s. Shri. Krishna Minirals.41.2653,43,3981,94,321117Sundry Creditors for Purchase ofPower M/s. Ercon Composites.41.2663,47,3581,98,373118Sundry Creditors for Purchase ofPower M/s. ESMO Industries41.2671,05,85885,256119Sundry Creditors for Purchase ofPower M/s. A. MA Traders41.2681,22,30095,077120Sundry Creditors for Purchase ofPower M/s. K. E. Kantesh41.2691,40,65372,424121Sundry Creditors for Purchase ofPower M/s. G.S. Gayathri.41.2701,39,12995,895122Sundry Creditors for Purchase ofPower M/s. G.M. Prasannakumar41.2711,34,59070,945123Sundry Creditors for Purchase ofPower M/s. G.M. Lingaraju41.2721,29,30387,935124Sundry Creditors for Purchase ofPower M/s. AAA & Sons EnterprisesPvt. Ltd.41.2736,20,4393,71,275125Sundry creditors for Purchase ofpower M/s.Mac Charles (India) Ltd.41.27416,10,71510,40,573126Sundry creditors for purchase ofpower M/s Lanco Electric UtilityLimited.41.27512,78,45226,58,57,600127Sundry creditors for Purchase PowerM/s. Super Wind Project.41.27783,75,73053,64,090128Purchase of Power from SepcoIndustries Pvt Ltd.41.27833,53,63920,32,851129Sundry creditor for purchase ofpower M/s.Swamy SamarthEngineers.41.2791,13,6388,61,40385 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)130Sundry creditors for purchase ofpower M/s.Indian Energy Exchange.41.281(1,15,95,969)0131Sundry creditors for purchase ofpower M/s.NTPC Vidyut VyaparaNigama Limited.41.2822,14,05,4652,21,02,507132Sundry creditors for purchase ofpower M/s.V V Subbareddy41.2881,35,8580133Sundry creditors for purchase ofpower M/s.Ravi Nursing Home.41.2891,24,8940134Sundry creditors for purchase ofpower M/s.Orient steel &Industries Limited.41.2907,44,2590135Sundry creditors for purchase ofpower M/s.Orient Abrasives Limited.41.2918,27,7990136Sundry creditors for purchase ofpower M/s.V Doddappa.41.2927,64,0770137Sundry creditors for purchase ofpower M/s.Three M Papermanufacturing co pvt ltd.41.2937,14,9780138Sundry creditors for purchase ofpower M/s.Vishwa Vinayak Minerals.41.2947,57,2260139Sundry creditors for purchase ofpower M/s.RLB Energy Limited.41.2956,99,7940140Sundry Creditors for Purchase ofPower M/s Sri Kedamath Sugars41.296(48,34,241)0141Sundry Creditors for Purchase ofPower M/s.Energy Development CoLimited.41.30130,41,2600142Sundry Creditors for Purchase ofPower M/s.U P C L41.302(84,96,331)0Total Power PurchaseLiability15,86,22,41,75011,71,23,00,034Hubli Electricity Supply Company Limited 86

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)bLIABILITY FORSUPPLIES / WORKS42.101,42.201,42.301,42.401&42.50160,72,48,73952,99,96,792cLaibility for InterCompany Transactions42.214 to42.2823,72,93,82,4384,33,66,31,1773,74,89,79,4914,27,89,76,283IIStaff Related Liabilitiesand Provisions1Pension provision in respect ofemployees existing as on31/03/200044.121(8,000)(8,000)2Provision for payment toPension trust44.12283,41,35,91952,82,65,2023Provision for Family Benefi t Fund44.140(77,068)(77,068)4FBF as on 31/03/200044.141(2,64,26,551)(2,47,36,137)5Provision for FBF w.e.f 01/04/2000& onwards44.1427,37,22,3177,40,70,1126Provision for Family Benefi t Fundw.e.f 01.10.200744.1436,39,55,2904,77,35,4337Provision for HESCOMContribution to new defi nedcontributory pension scheme w.e.f.,01.04.200644.1505,40,4913,92,9598Unpaid Salaries44.21013,14,61612,21,2379Unpaid Bonus44.22064,59945,97010Salary payable44.31024,33,57583,86,26587 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)11Salary payable to contractRevenue Asst. (PhysicallyChallenged Candidates)44.31219,6064,12,05612Bonus payable44.32033,50,77954,09,71513Ex-gratia payable44.3302,57,43,4962,36,76,500Sub Total97,87,69,06966,47,94,244IIIOther Liabilities and Provisions1Security Deposits in cash from Suppliers/ Contractors46.10112,54,69,34514,66,33,7432Security deposit other than in cash fromsuppliers / contractors (Contra)46.102003Retention Money - Bill amountretained as per terms of Purchase order/turnkey Contract46.10418,55,54,28325,85,89,2934Funds Received from KPTCL - Payable/Adjustible.46.10610,06,62,11710,06,38,2345Security deposit ,EMD,Retention Money-GVP46.10765,01,92765,95,9276Retension money -RGGVY Scheme46.108+46.1094,51,16,5906,69,34,0607Payable to GOK - BRP II fromConsumers46.204 to46.20840,19,64740,19,6478Electricity tax and other levies payable toGovernment.46.300(20,15,603)8,94,92,2559Compounding Fee payable to Govt.46.3013,87,74,2214,54,73,93710Provision for Income-Tax46.8000011Liability for Expenses46.41 To46.4788,72,46,53153,12,03,612Hubli Electricity Supply Company Limited 88

SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 12 : CURRENT LIABILITIES & PROVISIONSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)IVAccrued / Unclaimed AmountsRelating toBorrowings46.710 +46.720 +46.7302,36,41,4812,51,55,696VTaxes such as Sales Tax,Income Tax etc., deducted atsource and payable toGovernment.46.923+46.924+46.925+6.926+46.927+46.9513,65,64,8184,24,14,759VIVIICheques etc., in TransitOthers46.910 +46.911 +46.913 +46.920 +46.922 +46.928to46.94946.950 +46.954to 46.9781,37,90,7052,54,02,14247,36,7105,19,22,653VIIIInterest payable to consumerson security deposits.48.340+48.35019,78,34,31318,94,61,7171,68,85,62,5161,56,32,72,242Total 22,86,62,04,512 18,21,93,42,80389 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 13REVENUE FROM SALE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)IUNITS SOLD INMILLIONS6679.5605858.030IIREVENUE FROM SALEOF POWER – LT1Bhagya jyothi Scheme.61.10117,91,51,77817,39,97,0312Lighting, Combined Lighting,Heating & Motive Power -HDMC.61.1021,75,69,28,45491,64,08,6133Areas under Urban LocalBodies other than those under LT2aii category.61.10352,56,97,9421,09,13,65,7894Lighting, Combined Lighting,Heating & Motive Power -Areas under Village Panchayats.61.10484,51,02,13074,69,53,3415Private Professional & otherEducational Institutions -Areas under U L B's includingCity Corporations61.1135,19,21,6254,40,41,5446Areas under Village Panchayats.61.1141,12,11,22791,81,5277Commercial Lighting, Heating &MP. Areas under U L B's includingCity Corporations.61.1161,47,34,07,6681,23,48,74,7378Areas under Village Panchayats.61.11747,13,11,08735,12,18,0389Irrigation Pump sets (above 10HP)/Water Lifting.61.1211,03,73,29461,13,29410IP Sets upto & inclusive of 10 HP- General - Till such time metersare fi xed.61.12213,82,04,78,1144,30,08,30,01211IP Sets upto & inclusive of 10HP - General - Where metersare fi xed.61.123011,85,70,518Hubli Electricity Supply Company Limited 90

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 13REVENUE FROM SALE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1213IP Sets upto & inclusive of 10 HP -Urban Feeders..Private Horticultural Nurseries,Coffee, Tea, Cocoanut and Areca nutPlantations.61.12461.127 +61.12802,82,2362,28,43,0391,45,88414Industrial, Non-Industrial, Heating andMotive Power including Lighting61.129 To61.1331,36,54,41,7421,26,55,91,51915Water Supply and Seweragepumping installations, PublicLighting / Park Lights.61.1441,14,52,07,27388,80,99,09216Temporary Power Supply - Noncommerciallights and fans and othersmall appliances.61.14520,59,02,38315,05,60,30817Revenue from sale of power- BRP-II -Arrears recovered fromPermanently Disc. Instns.61.1520018Revenue from saleof poweraccounted through BJ/KJ Subsidy(up to 18 units).61.30056,16,00,00046,19,00,00019Revenue from saleof power accountedthrough IP Sets Tarif Subsidy.61.3012,02,92,00,0005,26,30,42,435Revenue from Sale of power-LT24,45,32,16,95317,04,57,36,720IIIRevenue from Sale of Power-HT1Public Water Supply & SeweragePumping61.25061,05,18,07352,55,04,3382Industrial, Non-industrial andCommercial purposes & RailwayTractionCommercial.61.255&61.2754,14,17,45,2223,20,98,78,8263Commercial61.25660,03,75,72150,27,53,9414Lift Irrigation Scheme underGovt Departments / Govt. ownedCorporations61.26211,64,78,2709,17,52,53891 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 13REVENUE FROM SALE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)5Revenue from sale of power - LISschemes and LI societies.61.26317,17,23945,78,1076Irrigation & Agricultural Farms, Govt& Horticultural Farms, Coffee, Tea &Coconut Plantations.61.264007LI Schemes and Lift Irrigation Societiesother than those covered underHT2(a)(ii).61.26595,06,00731,69,3968Residential Apartments and Colonies- HDMC.61.27296,08,92991,11,1289Residential Apartments andColonies -Areas under U L B's otherthan those under HT-4a Category.61.2734,23,23,2945,78,89,83510Residential Apartments and Colonies -Areas under Village Panchayats.61.27402,48,70,117Revenue from Sale of Power– HT5,53,22,72,7544,42,95,08,226IVWheeling charges recoveries61.800VMiscellaneous charges fromConsumers.1Reconnection Fee (D & R)61.9021,45,65,7173,14,42,3072Service Connection (Supervisioncharges)61.90411,59,70,1938,80,11,1623Delayed payment charges fromconsumers.61.9051,17,97,19,8041,22,14,80,5644VIOther Receipts from consumersGross Revenue from sale ofPower61.9062,35,05,8091,33,37,61,52331,31,92,51,2312,04,84,9861,36,14,19,01922,83,66,63,965Hubli Electricity Supply Company Limited 92

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 13REVENUE FROM SALE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)Less Rebates & Withdrawals:1Solar Rebate allowed to consumers78.822(71,43,549)(47,30,232)2Incentives for prompt payment78.823(15,33,719)(2,54,957)3Time of day (TOD) Tariff Incentive78.826(23,22,593)(6,41,223)4Withdrawal of Revenue Demand83.8(28,66,03,803)(5,51,63,262)VIIWithdrawal of RevenueDemand and Rebates(29,76,03,665)(6,07,89,674)VIIINET REVENUE31,02,16,47,56622,77,58,74,291Note: 1. The Tariff Subsidy shown under A/c code 61.300 & 61.301 are considered as salesin view of G.O.Order No:EN 48/PSR/2006 Dtd 13.06.2007.93 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 14 OTHER INCOMESl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)IIncome from InvestmentsInterest on Bank Fixed Deposits62.2221,20,90,94267,56,065Sub-Total1,20,90,94267,56,065IIMiscellaneous ReceiptsProfi t on sale of stores62.3302,64,08940,32,054Sale of scrap62.3409,52,68766,83,585Other Miscellaneous receiptsfrom Trading62.36011,02,76148,70,223Meter Readings and Calibrationof meter - charges of Wind MillProject.62.36333,50,90018,99,900Sub-Total56,70,4371,74,85,762Rental from Staff Quarters62.90155,90,91044,41,161Rental from others62.90248,4002,51,125Excess found on physicalverifi cation of Cash62.904010,717Excess found on physicalverifi cation of Materials Stock.62.90524,2227,25,904Excess found on physicalverifi cation of Fixed Assets.62.90601,14,138Rebate for collection of ElectricityDuty.62.91632,51,95466,57,655Miscellaneous Recoveries.62.91715,20,73,7999,45,34,120Sub-Total16,09,89,28510,67,34,821Total 17,87,50,665 13,09,76,647Hubli Electricity Supply Company Limited 94

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsPurchase of Power:A/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1M/s Western Region ElectricityBoard, Mumbai70.1036,71,3174,74,4302Power purchased from KPCL70.1086,74,10,02,0146,73,72,92,2843Power purchased from NTPC -RSTP70.1102,71,55,99,6162,58,26,89,7614Power purchased from MAPS70.1114,99,62,4774,74,38,6705Power purchased from NLC70.1121,06,45,37,9831,07,83,37,3446Power purchased from PGCIL(Transmission Charges)70.11356,22,01,10051,84,24,3227Power purchased from KAIGA70.11456,13,72,87248,31,89,1588Power purchased from PTC70.1172,01,18,33,39052,13,00,6719Power purchased from Ugar Sugars.70.1190010Power purchased from Murdeshwar70.12310,64,81,57815,22,44,32811Power purchased from JTPCL70.1253,90,77,53,89763,82,28,47812Power purchased from RenukaSugar70.12617,69,18,30910,63,06,98713Power purchased fromPrabhulingeshwar70.13059,55,28980,41,80014Power purchased from Tannir BhaviCompany Ltd.,70.133011,39,35,99715Power purchased from R.S.S.K.N70.13910,01,570016Power purchased fromVishwanath Sugars Ltd.,70.1403,27,12,1005,90,64,31217Power purchased from DoodhGanga Krishna Ltd.70.14130,28,52,32723,92,23,23918Power purchased fromTungabhadra Steel Product Ltd.70.1481,27,39,3521,62,32,05595 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)19Power purchased from Jamkhandi SugarsLtd.70.1531,49,39,52454,05,10820Power purchased from M/s GEM SugarsLtd.70.16020,29,45,46411,62,28,62521Power Transmission Charges to KPTCL70.1612,36,90,02,6531,69,34,25,23722SPPCC Administrative Expenses.70.16213,73,86515,00,96823U I Charges to SPPCC.70.16321,31,50,52626,73,57,25924O & M Expenses to SLDC.70.1652,69,96,860025Power purchase fromM/s Godavari Sugar Ltd, Samarawadi70.166(2,10,87,964)3,40,33,35026Power purchase fromM/s Venkateshwara Power Project.70.16713,50,14,5764,06,86,63127Power Purchase from M/s Nandisahakari sakkare karkhane niyamit Bijapur70.1694,15,91,11110,09,67,69328Power purchased from M/s MRP WindFarms70.17079,59,95889,25,97029Power purchase from M/s BhagyanagarIndia Ltd70.1713,37,18,8513,70,36,15930Power Purchase from M/s Suresh Kumar(HUF)70.17264,48,39175,78,66731Power Purchase from M/s Happy ValleyDevelopers70.17381,51,67090,72,48832Power Purchase from M/s VRL LogisticsLimited70.17423,47,48,72226,37,03,52333Power Purchase from M/s Revati Raju70.1752,03,02,6102,11,25,82834Power Purchase from M/s NuziveeduSeeds70.1763,49,74,4543,87,23,50035Power Purchase from M/s VSL miningCompany (P) Ltd.70.1772,92,17,7103,19,41,891Hubli Electricity Supply Company Limited 96

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)36Power Purchase from M/s VSL MiningProjects (P) Ltd.70.1781,24,68,9891,40,23,26937Power Purchase from M/s V S Lad &Sons70.1793,78,74,7184,13,64,11338Power Purchased from M/s ShakhambhariEnterprises Banglore70.18071,47,46882,12,35739Power Purchased from M/s BSK TradingInc70.18172,52,97583,65,04940Power Purchase from M/s. Jindal Steels70.18278,89,61988,,82,46541Power Purchase fromM/s. Kashyap .J, Majethai70.18382,44,22990,09,77742Power Purchase fromM/s. Vikram Traders70.1842,69,78,8923,16,67,75843Power Purchase fromM/s.Rahul Dravid70.18585,23,17198,06,27644Power Purchase fromM/s.Protectron Electromech Pvt. Ltd.70.18641,09,72847,99,34345Power Purchase fromM/s. Kaleesuwari Refi nery Private Ltd.70.18740,20,56747,12,53846Power Purchase from M/s. M.K.AgrotechPvt. Ltd70.18837,84,41342,16,58347Power Purchase from M/s. CauveryCoffee Traders70.18943,73,51549,59,77348Power Purchase fromM/s.Siddaganga Oil extraction Ltd.70.19049,25,91655,56,05949L.C. Charges / Other Bank commissionpaid for purchase of power70.19197,39,21283,72,20050Power Purchase from M/s. Compu ComSoftware Pvt Ltd70.192026,00,04851Power Purchase from M/s. ChandulalSurajlal70.193025,85,95197 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)52Power Purchase from M/s. G.ShoeExports70.194026,28,17753Power Purchase from M/s.. InternationalConveyors70.19527,46,78534,69,39454Power Purchase from M/s. Arts & CraftsExports70.196031,04,53555Power Purchase from M/s. IGE India Ltd70.19733,54,51338,44,18456Power Purchase from M/s. MayuraSteels Pvt. Ltd.70.198030,85,72257Power Purchase from M/s. ShilpaMedicate Ltd70.19942,14,42274,57,87958Power Purchase from M/s.S.Kumar70.201028,98,15159Power Purchase from M/s. ShreemCapacitor70.202064,90,96560Open Access Charges70.2030061Power Purchase from -M/s. Saptagiri Distilleries (P) Ltd.,70.2051,71,23,2681,44,98,27962Power Purchase from M/s. PragathiAroma Oil Distillers Pvt. Ltd.,70.2061,60,87,3341,53,02,97963Power Purchase from M/s. Sanjay D.Ghodawat70.2076,85,67,2376,37,89,42064Power Purchase from M/s. MMTCLimited.70.2088,10,53,7779,29,94,68065Power Purchase from M/s. LovelyFragrance70.20938,20,34232,70,62066Power Purchase from M/s. BhorukaPower Corporation Ltd.,70.2115,24,66,9645,77,89,22267Power Purchase from M/s. BharatPetroleum Corporation Ltd.,70.2123,11,25,7412,45,96,581Hubli Electricity Supply Company Limited 98

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)68Power Purchase from M/s. Indian Designs.70.21397,01,13894,58,81869Power Purchase from M/s. B.D.Patil & Co.,70.21474,96,65183,63,99770Power Purchase from M/s. Hindustan ZincLtd.,70.21518,41,20,06120,20,69,85971Power Purchase fromM/s. Generacion Eolica India Pvt. Ltd.,70.21616,51,89,59518,49,97,04072Power Purchase fromM/s. R.B.Seth Shreeram Narsingdas.70.21727,92,18334,93,44573Power Purchase from Shri. Suresh CAngadi.70.21811,61,98013,10,73074Power Purchase from - Smt. Mangala SAngadi70.21910,83,63011,50,95675Power Purchase from M/s. SwaniCorporation Ltd.,70.22010,54,91411,49,58776Power Purchase from M/s. Fastners &Allied Products (P) Ltd.,70.2214,08,21510,28,13677Power Purchase fromM/s. Mysore Engineers (India) (P) Ltd.,70.22218,69,74021,11,89178Power Purchase from M/s. C.R.RajeshNair.70.22329,57,32832,69,47379Power Purchase from M/s.Bharat EarthMover70.2252,95,65,7163,45,15,16180Power Purchase from M/s.S.C.Shettar &Sons.70.22658,63,44069,30,72481Power Purchase from M/s.KMMI SteelsPvt Ltd.70.22793,91,8141,08,97,75482Power Purchase fromM/s.Sai Krishna Minerals Pvt Ltd .70.2281,90,06,2152,09,86,91683Power Purchase from M/s.ILC IndustriesLtd.70.2291,70,20,8611,87,19,52199 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)84Power Purchase from M/s.B.S.C Textiles70.23013,00,67415,22,47985Power Purchase fromM/s.Sridevi Trading Company.70.2316,64,4757,94,41386Power Purchase from M/s.B.S.Channabasappa & Sons70.23240,09,75844,93,24987Power Purchase from M/s.BC & Sons70.2336,57,2478,38,39988Power Purchase fromM/s.Shri Channeshwar Drier70.2346,03,8506,78,78389Power Purchase fromM/s.Channeshwar Drier70.2357,06,8708,35,71990Power Purchase from M/s.AssociatedStones70.23625,80,11735,13,69191Power Purchase from M/s.Ranjeet Bullion70.2376,27,5838,91,10092Power Purchase from M/s.Bedmutha WireComp.70.2387,94,6368,17,58593Power Purchase from M/s.S.K.Shridhar70.2396,18,6315,24,04894Power Purchase from M/s S.K.Shashidhar70.2406,48,0897,47,17195Power Purchase from M/s.DLF Ltd.70.2416,56,93,9706,84,88,87496Power Purchase from M/s.SwarnaProperties.70.2421,05,20,7651,33,13,56497Power Purchase from M/s.SwarnaConstruction.70.24361,23,40871,33,26498Power Purchase from M/s.DakashMinerals & marine Pvt Ltd.70.24412,22,08315,35,97099Power purchase from M/s. JSW TradingCompany Ltd.70.24500100Power purchase from M/s. SadashivSugars Ltd.70.24648,67,4071,30,72,127Hubli Electricity Supply Company Limited 100

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)101102Power purchase from M/s. HiranyakeshiSahakari Sakkare Karkhane Niyamit.Power purchase from M/s. Nirani SugarsLtd.70.24770.24807,26,98,1107,36,48,2506,14,92,530103Power purchase from M/s. Indian CanePower Ltd.70.2494,25,08,72120,47,92,120104Power purchase from M/s. BilagiSugars Ltd.70.2505,42,86,9810105Power purchase from M/s. Satish SugarsLtd.70.25124,64,3543,77,000106Power purchase fromM/s. Global Energy Pvt. Ltd.70.25239,18,36020,05,218107Power purchase fromM/s. GMR Industries Ltd.70.25316,13,06,94524,34,37,852108Power purchase fromM/s. BhanwardeepCopper Strips Pvt. Ltd.70.2546,78,6448,21,241109Power purchase from M/s. Kedia Enterprises.70.25515,52,11418,26,640110Power purchase from M/s. JBMIndustries.70.2566,82,7157,42,646111Power purchase fromM/s. Nagashanti Enterprises.70.2576,22,2977,11,935112Power purchase fromM/s. Rachana Constructions70.2581,71,7376,88,666113Power purchase fromM/s. Skytech Engineering.70.2595,16,8676,74,916114Power purchase from M/s. Basavaraj N.Patil70.2606,84,4617,69,288115Power purchase from M/s. Prasanna K.Giriyapur.70.2616,72,2489,76,415101 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)116Power purchase from M/s. G.N. Chandu(HUF)70.26210,55,26310,58,682117Power purchase from M/s. Dr. G.N. Chandu70.2635,73,2769,97,987118Power purchase from M/s. Madhura C.70.2646,60,95010,48,163119Power purchase from M/s. Shri. KrishnaMinirals.70.26519,17,18921,28,098120Power purchase from M/s. Ercon Composites.70.26619,88,06822,81,366121Power purchase from M/s. ESMO Industries.70.2676,63,2598,78,649122Power purchase from M/s.A. MA Traders.70.2687,42,2879,08,808123Power purchase from M/s. K.E. Kantesh70.2696,67,7738,20,886124Power purchase from M/s. G.S. Gayathri70.2707,23,6198,83,821125Power purchase from M/s. G. M. Prasannakumar70.2716,39,4898,19,811126Power purchase from M/s. G.M. Lingaraju70.2727,26,63684,04,15127Power purchase fromM/s. AAA & Sons Enterprises Pvt. Ltd.70.27331,38,32633,55,742128Power purchase from M/s.Mac Charles(India) ltd70.27485,79,4781,02,05,916129Power purchase from M/s. Lanco ElectricCompany Limited.70.2751,54,78,45249,83,45,600130Power purchase from M/s. Super Wind Project70.2774,31,08,1564,49,80,676131Power purchase from M/s. Sepco IndustriesPvt Ltd.70.2781,37,27,16763,93,468132Power purcchase from M/s.Swamy SamarthEngineers.70.2791,77,4457,85,971Hubli Electricity Supply Company Limited 102

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)133Power purchase from M/s.Reliance EnergyLimited.70.28002,78,25,748134Power purcchase from M/s.Indian EnergyExchange.70.28114,74,84,0311,10,72,095135Power purchase from M/s.NTPC VidyutVyapara Nigam Limited.70.28257,98,02,9586,09,33,601136Power Purchase from M/s.Vijaynagar SugarsPvt Ltd.70.2835,57,02,6860137Power Purchase from M/s.Shamanur SugarsLtd.70.28475,36,0810138Power Purchase fromM/s.J K CementWorks.70.2857,10,36,6500139Power Purchase from M/s.DavangereSugars Ltd.70.2862,82,10,5590140Power Purchase from M/s.Chandama Farms& Horticulture Research centre Pvt Ltd.70.28714,42,1200141Power Purchase from M/s.V V Subbareddy.70.28819,65,5070142Power Purchase from M/s.Ravi NursingHome.70.28915,86,5860143Power Purchase from M/s.Orient Steel &Industries Ltd.70.29026,59,9010144Power Purchase from M/s.Orient Abrasives.70.29133,71,1600145Power Purchase from M/s.V Doddappa70.29231,73,3190146Power Purchase from M/s.Three M Papermfg Co Pvt Ltd.70.29331,94,5580147Power Purchase from M/s.Vishwa VinayakMinerals70.29432,45,5220148Power Purchase from M/s.RRB Energy Ltd70.29530,14,6220149Power Purchase from M/s.Sri KedarnathSugars.70.296(39,94,512)0103 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 15 PURCHASE OF POWERSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)150Power Purchase from M/s.HarekrishnaSugars70.2971,03,49,0740151Power Purchase from M/s.Falcon TyresLimited.70.29827,53,5430152Power Purchase from M/s.SathvahanIspat Limited.70.2991,05,45,4450153Power Purchase from M/s.HimatsingkaSeida Ltd.70.30043,66,6260154Power Purchase from M/s.EnergyDevelopment Co Limited70.30130,41,2600155Power Purchase fromM/s.Udupi Power Corporation Limited70.30285,20,17,8060156Power Purchase fromM/s.Jaspar Energy Pvt Ltd.70.3033,60,00,1480157Power Purchase from M/s GokakSugars Ltd.,70.3043,48,37,2850158Power Purchase Cost inrespect of InterESCOM Energy Exchange.Sub Total70.80142,91,00,00025,33,10,35,333018,35,36,75,744159Cost of Power Purchase of HukkeriRural Electricity Co-operative Societies.70.800(49,83,61,882)(38,41,57,769)160Rebate from Power Generators.62.919(4,91,82,826)(6,43,85,800)Sub Total(54,75,44,708)(44,85,43,569)TOTAL 24,78,34,90,625 17,90,51,32,175Hubli Electricity Supply Company Limited 104

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 16 REPAIRS AND MAINTENANCESl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)Repairs &Maintenance to1Plant and Machinery74.119,89,69,62219,48,71,5252Buildings74.239,58,65337,59,6083Civil Works74.35,60,4839,29,3864Lines, Cable Net Work Etc.74.51,41,83,7973,04,43,7425Vehicles74.623,32,52630,58,9016Furniture and Fixtures74.73,7858,8127Offi ce Equipments.74.88,44,7957,86,362Total 22,08,53,661 23,38,58,336105 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 17 EMPLOYEE COSTSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Salaries75.11,40,44,76,3221,09,30,85,8342Over Time75.212,35,60,4443,20,89,6183Dearness Allowance75.365,83,17,91342,35,85,1214Other Allowances75.413,84,08,08911,12,63,1635Bonus75.52,90,96,3152,90,99,085Sub-Total2,35,38,59,0831,68,91,22,8226Medical Expensesreimbursement75.6111,59,54,8401,48,81,3917Earned Leave Enchashments -Regular Employees- Employeescovered under Contributory PensionScheme75.61673,82,19808Earned leave encashment75.6178,95,19,5049,41,90,0819Earned leave encashment - Retired/ Deceased Employees75.6189,82,33,3602,87,55,38610Payment under workmenscompensation Act75.6293,51,080011Payment to helpers/employees of Monsoon gang75.6301,26,40,5813,11,95,164Sub-Total22,40,81,56316,90,22,02312Staff Welfare expenses75.74,11,78,9014,14,91,53413Terminal Benefi ts75.844,09,97,68933,88,05,523Sub-Total48,21,76,59038,02,97,056GRAND TOTAL 3,06,01,17,236 2,23,84,41,901Hubli Electricity Supply Company Limited 106

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 18 ADMINISTRATION AND OTHER EXPENSESSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Rent, Rates & Taxes76.101 +76.10298,81,22992,44,5612Expenses incurred towards securityarrangments76.103003Insurance76.104 + 6.105+76.10652,79136,2864Pagers cellular phones E-mail,Telephone, Trunk call, Telegramsand Telex Charges76.111 +76.11274,83,6611,12,84,0175Postage76.11321,50,56116,72,0286Mobile phone76.11424,26,83125,69,7067Revenue Receipts Stamps76.115008Legal Charges76.12116,03,95116,09,8189Payment to Auditors:Audit Feesincluding taxes.76.1225,65,0013,18,81210Consultancy charges76.12310,66,5318,19,93311Other Professional Charges76.125 +76.126+76.127+ 76.128+ 76.12911,08,17,48611,83,88,6321213Conveyance & Travel expensesRemuneration Paid to ContractAgencies engaged inComputerisation activities.76.130 To76.13976.14015,15,66,34910,68,07,68614,90,25,64710,12,25,26014Credit Rating Fee76.14101,40,03415Sub - Total39,44,22,07739,63,34,73316OTHER EXPENSES17Fees & Subscriptions76.15173,72842,55,28618Books, periodicals and dairies76.15297,6051,44,869107 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 18 ADMINISTRATION AND OTHER EXPENSESSL.NO19Printing & StationeryPARTICULARSA/CCODE76.153CURRENT YEAR 2010 -11(Amount in Rs.)80,32,416PREVIOUS YEAR 2009 -10(Amount in Rs.)83,94,15120Factory License Fees76.1540021Advertisement Expenses76.15518,53,17066,78,01522Computer stationary and fl oppies76.1565,83,4426,85,21223Contributions76.15755,62,42593,87,91424Electricity Charges76.1581,60,66,0501,43,63,60325Water Charges76.16021,36,45216,79,66826Entertainment76.16262,79683,12727Secret Service grant76.1642,40,0001,23,65128Karnataka State Building & Other ConstuctionWorkers Welfare Board CESS76.1660029Shared Administrative expenditure of theO/O the IGP(V&E) for KPTCL &ESCOMS76.17209,63,77930Miscellaneous expenses76.190 +76.19158,86,95370,44,71431Demand Side Management (DSM)Expenses76.19335,755032Freight & other material related expenses76.201 To+76.2821,89,43,3151,15,56,528Sub - Total5,95,74,1076,53,60,517TOTAL 45,39,96,184 46,16,95,250Hubli Electricity Supply Company Limited 108

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 19 OTHER DEBITSSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Asset DecommissioningCosts77.526,97,96246,51,0372Small & Low value itemsWritten off3Computer softwareLosses relating to FixedAssets77.61177.702,79,17169,4397,59,71529,77,13354,80,19045Gain on Sale of AssetsMaterial Cost Variance62.40079.110(1,96,184)027,80,949(26,72,568)028,07,6226Bad & Doubtful Debts Written off /provided for79.43,00,06,6755,36,94,5147Miscellaneous losses and Write offs79.54,81,73,6963,72,97,7267,81,80,3719,09,92,240TOTAL 8,09,61,320 9,37,99,862109 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 20 DEPRECIATIONSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Depreciation on Buildings77.1201,97,65,6251,78,40,4752Depreciation on Hydraulic Works77.13011,97,09810,55,5983Depreciation on Civil Works77.1406,10,4314,89,2704Depreciation on Plant andMachinery77.150 +77.15129,50,65,41026,21,78,5255Depreciation on lines, cable,network etc.,77.160 +77.16157,54,17,75653,85,59,5636Depreciation on Vehicles77.170 +77.1716,81,7796,81,7807Depreciation on furniture, fi xtures77.18012,33,54210,65,29489Depreciation on Offi ceequipmentsSmall & Low value itemsWritten off77.190 +77.19177.6003,20,2685,66,05889,42,91,9093,51,2235,11,29282,22,21,728Depreciation (Net) 89,48,57,967 82,27,33,020Hubli Electricity Supply Company Limited 110

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 21 - INTEREST AND OTHER CHARGESSl.No.1ParticularsIntrest on Loan from RECA/cCode78.540Current Year 2010-11(Amount in Rs.)53,83,67,971Previous Year 2009-10(Amount in Rs.)56,66,61,9592Intrest on Loan from Banks78.542 to78.54959,54,47163,42,8443Intrest on Loan from Commercial Banks forSPA Scheme78.560029,25,7684Payment of Interest on loan drawn by HESCOMfrom Syndicate Bank, Hubli78.5631,92,27,2054,11,09,0645Payment of Interest on loan drawn by HESCOMfrom SBI, Hubli78.56433,45,42,39429,74,31,1816Interest on loan from Canara Bank78.56735,87,64,70331,95,81,5857Interest on shortterm loan/ Interest on workingcapital C.C78.56813,30,61,11712,66,63,9568Payment of interest on PFC loan drawn byKPTCL on behalf of HESCOM78.58485,97,2191,16,79,9989Interest on APDRP - GOK Loan78.5917,65,57,5348,75,68,14510Interest on APDRP - REC78.59214,14,85,20012,90,49,50511Payment of interest on Loan drawn from Govttowards Ganga Kalyan Scheme.78.59439,04,95040,42,50012Interest on loan from Corporation Bank.78.5958,99,23,37610,00,38,0601314Interest on loan from GOK towards Central AdditionalAssistance to Power Sector Automation.Interest on Security Deposits to Consumers78.59678.613,85,88220,72,89,1911,71,17,72,02220,72,89,19111,74,50019,73,72,3941,69,42,69,06519,73,72,394151617Other Intrest and Finance ChargesLess : Interest and finance chargescapitalisedCapitalisation of interest on funds used duringconstructionInterest on belated paymnets to IPPs78.820 To78.87178.90080.108 To80.16769,57,580(1,25,44,725)98,18,88,83269,57,580(1,25,44,725)52,27,846(2,45,82,440)82,95,34,71152,27,846(2,45,82,440)98,18,88,83282,95,34,711Net Interest and other Charges 2,89,53,62,900 2,70,18,21,576111 9th Annual Report 2010-11

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 22 PROVISION FOR TAXATIONSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)1Provision for Income Tax81.1000023Provision for Deferred TaxFringe Benefi t Tax81.1010076.194 00Total 0 0SCHEDULE FORMING PART OF THE BALANCE SHEETSCHEDULE 23 : MISCELLANEOUS EXPENDITURETO THE EXTENT NOT WRITTEN OFF / OR ADJUSTEDSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)1 Preliminary expenditure onsurvey / feasability studies ofprojects not yet sanctioned 17.301 1,70,427 15,18,256Previous Year 2009-10(Amount in Rs.)Grand Total 1,70,427 15,18,256Hubli Electricity Supply Company Limited 112

SCHEDULE FORMING PART OF THE PROFIT AND LOSS ACCOUNTSCHEDULE: 24 PRIOR PERIOD CREDITS / CHARGESSl.No.ParticularsA/cCodeCurrent Year 2010-11(Amount in Rs.)Previous Year 2009-10(Amount in Rs.)A)Income relating toprevious years :1Receipts from Consumers Relating toprior periods65.20000.002Excess provision for Depreciation in priorperiods65.6002,68,67,1802,69,01,8843Excess provision for Interest andFinance Charges in prior periods65.70045,50,86715,43,6164Other Excess provision in prior periods65.80010,14,26,22028,19,61,2885Other Income relating to prior periods65.90082,23,64,23116,24,87,3986Prior Period Tariff/RE Subsidy65.91000B)Prior Period Expenses / losses :95,52,08,49847,28,94,1861Short provision for power purchased inprevious years83.100(30,96,27,519)(45,92,23,754)2Operating Expenses of previous years.83.300(2,35,154)(44,11,986)3Employee costs relating to previous years83.500(6,77,84,852)(63,21,516)4Depreciation under provided in previousyears.83.600(2,28,04,414)(17,02,43,057)5Interest and other Finance chargesrelating to previous years83.700(72,59,824)(1,23,24,249)6Short Provision for Income tax - previousyears83.810(1,73,354)07Administrative Expenses - previous years.83.8200(1,00,000)8Administrative Expenses - previous years.Materials related expenses - previousyears.83.84009 Other Expenses relating to prior periods 83.850 (51,28,472)(60,30,568)(41,30,13,589)(65,86,55,130)Net Prior Period credits/charges (A-B) 54,21,94,909 (18,57,60,944)113 9th Annual Report 2010-11

SCHEDULE: 25SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THEACCOUNTSI. SIGNIFICANT ACCOUNTING POLICIES1. BASIS OF ACCOUNTINGThe fi nancial statements have been prepared under historical cost convention, in accordancewith the provisions of the Companies Act, 1956 as adopted by the Company.All income and expenditure having a material bearing on the fi nancial statements havebeen recognized on accrual basis, except in respect of interest on belated paymentsto private power suppliers, where interest would be recognized on payment basis.However, the same is quantifi ed and disclosed as contingent liability.2. FIXED ASSETS2.1 Fixed assets are shown at their historical costs with corresponding accumulateddepreciation. Fixed assets acquired /constructed are valued at actual cost of acquisition/ construction. Materials issued to works from stores and becoming theassets are valued at standard rates. Interest and fi nance charges up to the stageof commissioning of fi xed assets are being capitalized.2.2 Assets transferred by Karnataka Power Transmission Corporation Ltd., (KPTCL)have been stated at the cost of transfer indicated by KPTCL in the transfer document.2.3 In respect of Assets shared with KPTCL, the ownership and title vests with KPTCLand as such, they are not refl ected in the books of accounts of the Company. Butthe share of maintenance expenditure in respect of such assets is charged to Profi t& Loss Account.2.4 Consumer contribution, grants and subsidies received towards cost of capital assetsare treated as reduction in the cost of Gross Fixed Assets in the BalanceSheet as per AS-12.2.5 Released assets are valued at W.D.V., Scrapped assets are valued at scrap rateindicated in the Schedule of rates.Hubli Electricity Supply Company Limited 114

3. DEPRECIATION3.1 Depreciation on all assets (except lease hold land) is provided on straight line methodas per the guidelines prescribed in notifi cation No. B/12/01 dated 29.03.2006issued by KERC, which is the adaptation of notifi cation No.L-7/25(5)/2003-KVN dated 26.03.2004 issued by CERC & the CERC Tariff Regulations 2009,Annexure III.3.2 Depreciation on released assets and re-issued to works and categorized asassets is charged at rates as per the rates as prescribed in notifi cation No.B/12/01 dated 29.03.2006 issued by KERC, which is the adaptation of notifi cationNo.L-7/25(5)/2003-KVN dated 26.03.2004 issued by CERC & the CERC TariffRegulations 2009, Annexure III.3.3 Depreciation on leasehold land is provided for the years on amortization ratesarrived at on the basis of lease period.3.4 Depreciation on fi xed assets is provided up to 90% of the original cost of theasset.3.5 Plant and Machinery costing Rs.500/- or less individually, is depreciated at 100%in the year in which they are installed and put to use.3.6 Depreciation is not provided on the assets created through capital grants.3.7 Depreciation is provided from the month of commissioning of the assets.i) Depreciation on newly commissioned assets is charged for the whole monthirrespective of the date of commissioning in that month.ii)Depreciation on released/de-commissioned assets is provided up to the end ofthe previous month immediately preceding the month of decommissioning of theasset.4. CAPITAL WORK-IN-PROGRESSMaterials issued to Capital Work-in-progress are valued at Standard Rate, which isdetermined by the Company from time to time based on previous purchase price andprevailing market rates (published as O&M Schedule of Rates).115 9th Annual Report 2010-11

5. INVENTORYInventories are valued at Standard Rate, which is determined by the Company fromtime to time based on previous purchase price and prevailing market rates (publishedas O&M Schedule of Rates).6. SUBSIDY FROM GOVT.OF KARNATAKAThe Revenue Subsidy is treated as Tariff Subsidy and accounted in Revenue from saleof Power and the Capital subsidy/grants are treated as reduction from cost of fi xed assets.7. RETIREMENT BENEFITSIn respect of Pension and Gratuity, contribution to KPTCL/ ESCOM’s , Pension & GratuityTrust is made based on the Actuarial Valuation.The pension and gratuity payment is taken care of by the Trust to eligible employeesas and when they retire, as per Government notifi cation No: DE 14 PSR2002/31.05.2002.8. REVENUE RECOGNITIONRevenue from sale of energy is accounted on accrual basis. Revenue is reducedby unbilled revenue of previous year included in this year’s revenue. Revenue is increasedby the unbilled revenue of the current year and revenue due from consumerswhose ledger accounts are yet to be opened. Rebate to consumers and Incentive forprompt payment are shown as deduction from Revenue.The revenue from sale of energy of HESCOM is as per the tariff fi xed by KarnatakaElectricity Regulatory Commission (KERC) from time to time.9. PROVISIONS FOR BAD & DOUBTFUL DEBTSProvision for bad and doubtful debts is made on the actual amount of arrears consideredas bad & doubtful on case-to-case basis.10. ACCOUNTING OF GRANTSThe Capital Grants received from Government and consumer contribution towardscost of capital assets are treated as per AS-12.Hubli Electricity Supply Company Limited 116

11. TAXES ON INCOMETax on income for the current period is determined on the basis of taxableincome and tax credits computed in accordance with the provisions of theIncome Tax Act, 1961. The Company is eligible for deduction under section 80IAof the Income Tax Act but however is covered under the MAT provisions.Deferred tax is recognized on timing differences between the accounting incomeand the taxable income for the period up to 31-03-2011 and quantifi ed using thenormal tax rates as on the Balance Sheet date.13. BORROWING COST:Borrowing costs that are attributable to the acquisition, construction of aqualifying asset are capitalized as part of cost of such asset, till such timethe asset is commissioned. A qualifying asset is an asset that necessarilyrequires a substantial period of time to get ready for its intended use. All otherborrowing costs are recognized as a revenue expense in the period in whichthey are incurred.14. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETProvisions are recognized for liabilities that can be measured only by using asubstantial degree of estimation, ifa) The Company has a present obligation as a result of a past event.b) A probable outfl ow of resources is expected to settle the obligation; andc) The amount of the obligation can be reliably estimated.Contingent liability is disclosed in case of;a) a present obligation arising from past events, when it is not probable that an outfl owof resources will be required to settle the obligationb) a present obligation when no reliable estimate is possiblec) a possible obligation arising from past events where the probability of outfl ow ofresources is not remote.117 9th Annual Report 2010-11

Contingent Assets are neither recognized, nor disclosed.Provisions, Contingent Liabilities and Contingent Assets are reviewed atBalance Sheet date.15. Loans initially taken by KPTCL and transferred to HESCOM are treated asunsecured loans in the absence of information as to securities offered. Repaymentthereof is being made through KPTCL.16. Bank Commission/charges etc., for operating LC’s opened for making payment forpower purchases are treated as cost of power purchase.17. The un-availed portion of Leave Encashment is assessed and provided on the basisof the Actuarial Valuation Report.II. NOTES TO ACCOUNTS:1. The Company operates only in one sector viz., distribution of powersupply. Accordingly, accounts are compiled for this segment. Hence, Segmentalreporting is not applicable to the Company.2. Transactions with KPTCL / ESCOM’s are accounted as receivables/payables.3. The Capital Grants received from Government and consumer contributiontowards cost of capital assets aggregating to Rs.621.56 Crores is reduced fromGross Block and shown in Balance Sheet. The Consumer contributions andGovernment grants towards cost of capital assets cannot be identifi ed torelevant fi xed assets. Hence, the same is treated as related to the Lines, Cables &Networks Assets group and deducted directly from the total Gross Fixed Assetsin the Balance Sheet.4. The Company has spent Rs.10.68 crores and Rs.10.12 crores in FY10-11 andFY09-10, respectively towards Computerized Billing and Collection Activities.The Billing and Collection Activities are aggressively pursued by the Company torender effi cient, effective and consumer friendly services to the consumers.5. The transactions between accounting units within the Company are accountedas Inter Unit Accounts (IUA).Hubli Electricity Supply Company Limited 118

6. The balances in respect of Sundry Debtors, Sundry Creditors and Loans andAdvances to suppliers and others are subject to confi rmation since the Companyis having large customer base.7. All the employees of the Company are on deputation from KPTCL.8. Leave encashment and F.B.F has been provided for the period on the basisof Actuarial Valuation Report. Whereas, since beginning, the Company is nothaving investment policy for the provision made during each fi nancial year.9. Estimated amount of contract remaining to be executed on Capital Account isdisclosed in the Balance Sheet.10. Free lighting: Difference between Tariff rate and subsidized rate on free lightingconsumption provided to the employees of KPTCL including employees ondeputations to HESCOM in the service area of the Company is recognized asexpenditure in the books of the Company. The energy consumption under subsidizedrate is 8.85 M.U. and the cost booked is Rs.2.72 crs.11. Electricity Consumption of Company Offices:Electricity consumption of Company Offi ces and the auxiliary consumption of MUSSare treated as revenue expenditure. The total energy consumed on this count is 2.92M.U. and the cost booked is Rs.1.61 crs.12. Power PurchaseAs per the Government of Karnataka Order No. EN 45 PSR 2006 Dtd.22.04.2006 and EN 70 EMC 2009, dated 10.11.2009 the allocation of power fromconventional energy sources are at 20.3598% from 1.4.2009 to 31.10.2009 &18% from 1.11.2009 to 31.03.2010. GOK vide its Order No. EN126 EMC2010dtd 24.03.2010 has allocated conventional energy of 18.18% to the HESCOMfrom 01.04.2010 and onwards. Non-conventional project are allocated based ongeographical area of HESCOM.The supply of energy to the Company includes EHT supply at more than 33 KVvoltages at the interconnection points for transfer of power for billing by theCompany.The Company accounts the power purchase from 10.06.2005 directly from PowerGenerators Pool Account as per the energy allocation / assigned by the Governmentof Karnataka as per the Government order issued from time to time. The rates119 9th Annual Report 2010-11

followed for the allocated/assigned power purchase is based on the commercialrates/predetermined rates as approved by the PPA/ KERC/ Government of Karnataka.During the year the Company has purchased High Cost Energy of 1400.10M.U. at a cost of Rs.698.92 Crores as per the GOK’s decision.The Transmission losses on account of Power Purchase from Generation Point tillinterface point of Transmission are accounted by the Company as per the powerpurchase bills based on the proportionate allocated energy and adjusted afterenergy balancing among ESCOMs.The Company accounts the import /export of energy among ESCOMs as net energyeither as a sale/purchase.13. Electricity Taxes:Electricity tax of Rs. 65.76 Crores collected from consumers from April 10 - March 11is adjusted against the Tariff subsidy received / receivable from GOK vide G.O. No.EN /18/PSR/2010/P1, Bangalore Dated 31.03.2011.14. Prior period credits/charges are the omissions/errors occurred during the previousyears and noticed in the current year. Rs.95.52 crores is accounted towards priorperiod income and Rs.41.30 crores is accounted towards prior period expenses. Thenet prior period credits/charges has resulted in net prior period credits of Rs.54.22crores.15. The details of sale of energy and distribution losses during the current year are asfollows (as certifi ed by the management):Sl.No. Particulars Energy in M.U2010-11 2009-10abcdefEnergy Sales:Total energy available for saleTotal metered salesTotal un-metered salesTotal salesDistribution lossesPercentage of Distribution losses8407.443153.103526.466679.561727.8820.55%7401.892868.862989.175858.031543.8520.86%Hubli Electricity Supply Company Limited 120

The total energy available at Generating Point for FY-11 is 8677.21 M.U., the totalenergy available for sale at inter face point is 8407.44 M.U and the Transmission Loss is269.77 M.U. which is 3.11%.16. Managerial remuneration paid during the fi nancial year 2010-11 & 2009-10 to thedirectors are as follows: -Sl. No Particulars 2010-11(In Rs.)2009-10(In Rs.)MANAGING DIRECTOR & DIRECTORS:(Whole Time Directors)1 Salary and allowance 1382670.00 1188610.002 Ex-gratia 5590.00 7440.003 Medical Expenses 3084.00 9392.004 Traveling Expenses 1409288.00 714258.00OTHER DIRECTORS:1 Sitting fees 18500.00 15500.002 Traveling Expenses 279478.00 181918.0017. The details of the Pension and leave salary contribution in respect of Managing Directorand other Directors / Offi cers remitted to Accountant General (Accounts of Entitlement)Bangalore is as noted below:Sl. No. Particulars Amount inRs.Designation of the Officerto whom the contributionpertains.1 Pension Contribution Nil Managing Director &Directors2 Leave Salary Contribution Managing Director &DirectorsTotal18. The Company has received total subsidy of Rs.1575.20 crores from GOK during theyear which includes Rs.1316.12 crores towards subsidy for free power supply to IPsets and Rs.56.16 crores towards BJ/KJ subsidy and Rs.202.92 crores towards TariffSubsidy for FY-10.19. The Other Assets amongst others comprises RE Subsidy / Grant receivable from GoK121 9th Annual Report 2010-11

towards RE Loss of an amount of Rs.341.99 Crs for the period 2002-03 to 2004-05.The Company has been pursuing for recovery of the same. As the amount representsreceivable from the Government of Karnataka no provision for the same has beenmade.20. The title deeds of the immoveable properties transferred by KPTCL to HESCOMhave been obtained.21. Consequent to unbundling of transmission and distribution activities and formationof Electricity Distribution Companies, KPTCL has transferred certain loans to theCompany, as a part of transfer of assets and liabilities. The specifi c details of theloans, scheme-wise and institution-wise with its terms and conditions are yet to bereceived from KPTCL. In the absence of these details, the interest payment asintimated by KPTCL has been refl ected in the books of accounts. Loan transferredby the GOK institution wise have been accounted.Consequent to transfer of Loan from KPTCL, the components of Interest, guaranteecommission and principal amount payable to fi nancial institutions in respect of thesaid loans during the years 2010-11 & 2009-10 has been made by KPTCL on behalfof the Company. The details of which are as here under:Particulars 2010-11 (Rs. In Crores) 2009-10 (Rs. In Crores)InterestGuarantee CommissionPrincipal repayment14.790.0330.7928.950.1343.19The above amounts have been recorded in the books of accounts and adjustedthrough KPTCL accounts.22. Interest on borrowed funds amounting to Rs.1.25 crores utilized during constructionperiod is capitalized during the year.23. Dues to MSME (SSI) units outstanding for more than six months are reported to beNIL.24. Material accounting is at standard cost basis. All variation accounted for throughthe material variance account resulting in credit value is transferred to Material CostVariance Reserve Account, in order to set off against the future debits if any. Thematerial cost variance for FY 10-11 has resulted in debit balance of Rs.0.53 Croresand the same is transferred to Material Cost Variance Reserve Account.Hubli Electricity Supply Company Limited 122

25. Sundry Debtors for sale of power includes Rs.595.38 lakhs pertaining to disputes raised byconsumers and which are pending before various authorities and courts, as detailedbelow:Sl.No1234567Name of Appellate AuthorityCorporate Offi ce, GESCOM.Chief Engineer (Ele), GESCOM.Superintending Engineer (Ele), O&MCircles, GESCOM.Zilla Vidyuth Adalat, KarwarCourtsNational Consumer Disputes RedressalCommission (NCDRC),DelhiKarnataka Electricity RegulatoryCommissionNumber of Cases13717818411Amount( in lakhs )42.9813.1193.690.15439.683.941.83Total 285 595.3826. The Company’s borrowings include Secured loan of Rs.1326.54 Crores andUn-secured loan of Rs.210.89 Crores as at the end of the year 2010-11. Theamount of Rs.210.89 Crores outstanding borrowings as on 31.03.2011 is treated asunsecured, since the entire amount is drawn by KPTCL and transferred to HESCOMthrough transfer documents and The specifi c details of the loans, scheme-wise andinstitution-wise with its terms and conditions are yet to be received from KPTCL.27. The previous fi gures are regrouped and recast wherever required to make themcomparable with current year fi gures.28. The debit balance appearing against Account Code 44.141 (FBF) under Schedule 12is subject to reconciliation.29. The Power Purchase cost is net off of Import and Export and Incentives. The actualinterest on belated power purchase payments as per Power Purchase agreement isincluded in the Interest and Other Charges (Sch.21).30. Bad and doubtful debts are being made on the actual amount of arrears consideredas bad & doubtful on case-to-case basis. During the fi nancial year 2010-11 provisiontowards Bad and Doubtful debts is Rs.96.68 crores which is inclusive of additional badand doubtful debts provision of Rs.59.15 crores transferred by KPTCL at the time ofbifurcation of KPTCL into ESCOMs i.e., as on 1-6-2002.123 9th Annual Report 2010-11

31. The Company has regarded the following as Contingent Liabilities as on BalanceSheet date:Sl No.1234ParticularsAmount(Rs. In Crs)Additional fi xed cost paid by the KPTCL for supply of power byThannir Bhavi Power Corporation Limited (TBPCL) 127.25The Claim of Interest on belated payments by IndependentPrivate Power Producers (IPPs) which is not yet accepted bythe Company as its liability. 26.22Interest on belated payments pertaining to erstwhile VVNL, asthere was no PPA with VVNL. 2.25KPTCL intimated (July 2009) to HESCOM to raise the loanliability to the extent of Rs.20.45 crore being the HESCOMportion of APDRP-REC loan releases of Rs.39.28 crore. TheCompany has disputed the same as the periodicity of the liabilityis not tenable with the G.O. 20.455 Interest on delayed payment of Electricity Tax to Government. 6.666Being the surcharge claim of M/s NLC Ltd., for the period prior to2008-09 not accepted by the Company for want of confi rmationfrom PCKL. 15.3832. Sundry creditors for Purchase of Power-KPTCL includes Rs. 30.06 Crores towardsdifference in transmission charges of 26.23 paise per unit billed by KPTCL during2006-07 and transmission charges of 19.42 paise to be charged as per KERC order,which was contested by KPTCL before Appellate Tribunal for Electricity (ATE). TheKPTCL has appealed before the Hon’ble Supreme Court against the orders of theATE which is pending as on the date. Transmission charges have been accounted at19.42 paise per unit up to 30.11.2009 and at Rs.102,427/- per M.W. of installed capacityfrom 01.12.2009 to 31.12.2010 and Rs.95646/- per M.W. of installed capacity from01.01.2011 to 31.03.2011.33. The KPTCL in their circular letter No. FA(A&R)/C(AP&A)/DC(A&C)/AAO-I/CYS-104/Dtd.15.3.2007 have requested to account an amount of Rs.127.25 Crores towardsthe Additional fi xed cost paid by the KPTCL for supply of power by Thannir BhaviPower Corporation Limited (TBPCL) as Regulatory Assets and Liabilities in the books ofaccounts. The amount is to be passed on to the consumers through the Tariff approvalfrom the KERC and the amount collected from the consumers be passed on to KPTCL.Hubli Electricity Supply Company Limited 124

The Hon’ble KERC has not yet approved this. In view of this, the Company has treatedthis as contingent and thus not recognized the Regulatory Assets and Liabilities ofRs.127.25 crores in the current year Accounts.34. Deferred Tax Assets and Liabilities are computed on the timing differences on theBalance Sheet date between the carrying amount of Assets and Liabilities and theirrespective tax basis. Accordingly, the Company has arrived Deferred Tax Asset as onthe date of Balance Sheet and the same has not been recognized in the accounts onreasons of prudent accounting practice.35. The fi gures given in Balance Sheet, Profi t & Loss Account and Schedules thereto havebeen rounded off to the nearest rupee.36. The Energy Balancing under inter ESCOM energy exchange up to 66KV for the periodApril 2008 to March 2011 is done by State Load Dispatch Centre and same has beenAccounted.37. The Insurance Claim of Rs.45.72 lakhs towards loss of 276 distribution Transformersare pending as on 31.03.2011 before the Insurance Companies.38. The Company pays Pension Contribution to KPTCL/ ESCOM’s. Pension & GratuityTrust @ 26.13% of the salary and Gratuity contribution @ 2.24% of basic pay and D.A.on monthly basis as intimated by the Trust. As on 31-03-2011, the outstanding liabilityof Pension & Gratuity Contribution to the Trust isRs.81.83 crores.39. The KERC has issued orders on the review petition fi led by the GoK against KERCTariff Order 2009-10 dated 25.11.2009 for the Additional RE Subsidy receivablefrom GOK for FY-08 & FY-09 amounting to Rs.1224.44 crs and the same has beenconfi rmed by the Hon’ble Commission as per its ordered dated 06.01.2011. As per thesaid orders the GoK has to release the said subsidy amount in 36 months instead of12 months as ordered earlier. The same is not provided in the books of accounts as thesubsidy is to be accounted on the basis of receipt of the same.40. The Company has received Rs. 70.43 crores including adjustments from GOK towardsEquity and the same has been accounted under Share Deposit pending issue of EquityShares to GOK.41. The Company has fi led an appeal before the Commissioner of Income tax (Appeals),Hubli against the Assessment Order for AY-2007-08 of Joint Commissioner of Income125 9th Annual Report 2010-11

Tax , Range – 3, Hubli for the tax demand of Rs.2,53,74,071/- on the Miscellaneousrecoveries of the Company.42. The Company has fi led an appeal before the Joint Commissioner of Commercial Taxes(Appeals), Hubli against the orders of Assistant Commissioner of Commercial Taxes(Enf-1), Hubli for payment of disputed tax of Rs.9.89 crores for the years 2005-06 to2009-10.43. The Company has fi led an appeal before the Commissioner of Income tax (Appeals),Hubli against the Assessment Order for AY-2008-09 of Deputy Commissioner ofIncome Tax , Circle1(1), Hubli for the Income Tax demand of Rs.72,78,730/- on theMiscellaneous recoveries of the Company.44. The Company has fi led an appeal before the Commissioner of Income Tax (Appeals),Hubli against the Assessment Order passed by the Income Tax Offi cer(TDS), WardHubli for AY-2007-08 to 2010-11 for the Tax Demand of Rs.65,18,10,369/- on the nondeduction of TDS under section 194J under section 201(1).Transmission Charges 64,92,42,295.00SLDC Charges 25,68,074.00TOTAL 65,18,10,369.00The Commissioner of Income Tax (Appeals), Hubli has passed the Appeal Orderson 29.07.2011. As per the said Appellate order, the Company’s appeal on TDS ontransmission charges of Rs.64.92 crs is upheld while the interest on TDS amount ofSLDC charges is not allowed for which the Company is preparing to fi le further appealbefore the Appellate Tribunal.45. The Company has accounted certain transactions pertaining to the period prior tounbundling of the KPTCL which have been accounted as ‘Proposed Adjustment to NetWorth’ pending approval of the GoK. A sum of Rs.11.54 crs has been accounted underProposed Adjustment to Net Worth, the proposal for which is under preparation andas such the approval of the same is pending as on the date of closure of the fi nancialstatements.46. The employees/offi cers who have joined/joining on or after 1.4.2006 are coveredunder New Defi ned Contributory Pension Scheme (NDCPS). As per this scheme, theemployees/offi cers have to contribute 10% of the Basic Pay & Dearness AllowanceHubli Electricity Supply Company Limited 126

with a matching contribution from the Company. The said contribution is being remittedwith the KPTCL/ESCOMs P&G Trust for the time being pending appointment of CentralRecord Keeping Agency & Pension Fund Managers. The contribution and returnsthereon shall be deposited in a non-withdrawable Pension Tier-I Account.The normal exit is at the age of superannuation for Tier-I of the Pension system. Atexit, the employee shall be mandatorily required to invest 40% of pension wealth topurchase the annuity. In case of employees, the annuity shall provide for pension forthe life time of the employee and his dependent parents & his spouse at the time ofretirement. The individual shall receive a lump sum of the remaining pension wealthwhich he would be free to utilize in any manner. In the case of employees who leavethe scheme before attaining the age of superannuation, the mandatory annuitisationshall be 80% of the pension wealth.47. The Company has accounted Rs.85.64 crs towards Un-billed Revenue on accrual basisas the portion of the March-11 consumption gets billed in the Month of April-11 asper our billing system and the same is included in the current year’s revenue fromsale of power. The provision for Un-billed Revenue of Rs.64.08 crs towards IP Setspertaining to previous year i.e., 2009-10 which was included in the current year’srevenue is withdrawn and accounted as prior period income.48. The Company’s Accounts approved by the Board on 11-08-2011 and reported upon bythe Statutory Auditors on 11.08.2011 have been revised in the light of the observationsmade by the Comptroller and Auditor General of India during their supplementary auditu/s 619 (4) of the Companies Act, 1956. The said revision has resulted in decreaseof Total Income of the Company by Rs.124.06 crs while the total net expenditureincluding Interest and other charges have increased by Rs.0.88 crs, & the PriorPeriod credits have increased by Rs.63.85 crs, resulting in an increase in Net Loss byRs.61.09 crs.As per our report of even dateFor Vijay Panchappa & Co.Chartered AccountantsSd/- Sd/- Sd/- Sd/-(CA. P.M. Mudigoudar) (Pankaj Kumar Pandey, IAS) (Chikkananjappa) (R.R.Joshi)Partner Managing Director Director (Technical) Financial AdviserM.No.204096Place: HubliDate : 20.09.2011127 9th Annual Report 2010-11

CASH FLOW STATEMENT FOR THE PERIOD 01-04-2010 TO 31-03-2011A. Cash Flow from Operating activitiesProfi t before taxationRs in Crores(64.70)(64.70)Add: Adjustments forDepreciationInterest & Finance ChargesProvision for Leave Encashment & FBFBonus/Exgratia payableProvision for Retirement Benefi tsDeferred tax written offMaterial cost Variance CreditOperating Profi t before Working Capital ChangesAdjustments forTrade receivablesOther ReceivablesInventoriesTrade/ current payablesNet Cash from operating activitiesB. Cash Flow from Investing ActivitiesPurchase/ Acquisition of Fixed Assets ( Net of Sales/withdrwal)Loans, Deposits & Advances (Non Trade)InvestmentsNet Cash used in Investing ActivitiesC. Cash Flow from Financing ActivitiesProceeds from BorrowingsShares/Share DepositsRepayment of BorrowingsDeposits and contributions from consumersGrants received towards Capital ExpenditureService Line & Security DepositsInterest & Finance ChargesPreliminary ExpensesNet Cash used in Financing ActivitiesIncrease in Cash & Cash Equivalents ( A + B + C)Add : Cash and cash equivalents as at the commencementCash and cash equivalents as at the end of the periodAs per our report of even dateFor Vijay Panchappa & Co.Chartered Accountants89.49289.547.502.9139.420.00(0.53)(200.93)(91.52)(0.44)414.87(143.49)(12.52)0.0099.8170.14(279.63)63.64(21.14)27.96(289.54)0.13428.32363.63121.98485.59(156.00)(328.62)0.9732.4033.37Sd/- Sd/- Sd/- Sd/-(CA. P.M. Mudigoudar) (Pankaj Kumar Pandey, IAS) (Chikkananjappa) (R.R.Joshi)Partner Managing Director Director (Technical) Financial AdviserM.No.204096Place: HubliDate : 20.09.2011Hubli Electricity Supply Company Limited 128

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE(PURSUANT TO PART - IV OF SCHEDULE-VI TO THE COMPANIES ACT, 1956)I Registration Details :Registration No : 0 8 / 3 0 4 3 7 State Code: 0 8Balance Sheet Date 3 1 0 3 1 1II Capital Raised during the year (Amount in Rs. Thousands)Public Issue : Nil Rights Issue : NilBonus Issue : Nil Private placement : NilIII Position of Mobilisation and Deployment of Funds(Amount in Rs. Thousands)Total liabilities : 25399194 Total Assets : 25399194Source of FundsPaid-up Capital : 2333361 Reserves & Surplus : (68215)Share Deposit : 4003431Secured loans : 13265440 Unsecured loans : 5865177Application of fundsNet Fixed Assets : 13986037 Investment : 25100Net Current Assets : 4150030Accumulated losses : 7237857 Misc. Expenditure : 170IV Performance of Company ( Amount in Rs. Thousands )Turnover : 31200398 Total Expenditure : 31847445Profi t Before Tax : (647047) Profi t After Tax : (647047)Earnings per share in Rs. :(3) Dividend rate % : —V General Names of Three Principal Products / Services of CompanyItem Code No : —Product Description : Distribution of PowerAs per our report of even dateFor Vijay Panchappa & Co.Chartered AccountantsSd/- Sd/- Sd/- Sd/-(CA. P.M. Mudigoudar) (Pankaj Kumar Pandey, IAS) (Chikkananjappa) (R.R.Joshi)Partner Managing Director Director (Technical) Financial AdviserM.No.204096Place: HubliDate : 20.09.2011129 9th Annual Report 2010-11

"Subsidy received from GOK in 2010-11 against the demand for 2010-11 towards power supply toIP set of upto 10HP electrical installations and to BJ/KJ consumers upto 18 units per Kwh per month."(Rs. in Crores)SlNo.12ParticularsPower supplyto IP sets ofupto 10 HPPower supplyto BJ/KJ upto18 units permonth perinstallationMeteredNo. of Installations Consumption in MUTotalUn-MeteredMeteredUn-Metered"Demand(Principal portion only)"Total Metered Un-Metered TotalSubsidyreleasedfor 2010-11151688 351780 503468 120.08 3489.46 3609.54 47.98 1317.71 1365.69 1316.14627571 124795 752366 113.34 36.80 150.14 49.38 12.76 62.14 56.163 Total 779259 476575 1255834 233.42 3526.26 3759.68 97.36 1330.47 1427.83 1372.30Statement showing the details of Subsidy released in 2010-11ESCOMsSubsidy released forFY 2010-11Balance Subsidy for2009-10 as per KERCorders released in2010-11GPs' Electrical arrearsof 31.03.2004 releasedin 2010-11Grand TotalHESCOM 1372.30 202.92 12.34 1587.56TOTAL 1372.30 202.92 12.34 1587.56Hubli Electricity Supply Company Limited 130

AVERAGE REALIZATION RATE FROM SALE OF POWERAccountHead LTCategoryTariffDemandSeriesA/c Code No ofConsumersClosingBalanceSeriesUnits Sold RevenueDemandUnits % ofUnitsSoldTariffSubsidyTotal Revenue AverageRealisationRate Paiseper UnitwithoutSubsidyAverageRealisationRate Paiseper Unit withSubsidy1 2 3 4 5 6 7 8 9 10 11=(8/6)*100 12=(10/6)*100 13ClosingBalanceBhagya Jyoti &Kutir JyotiLT-161.101/61.30023.1017,52,36615,01,43,1002.2517,91,51,778.0056,16,00,000.0074,07,51,778.00119.32493.3649,10,62,266.00Lighting andAEHLT -2a&b61.102, 61.103,61.104, 61.113& 61.11423.102, 23.103,23.104, 23.113& 23.11419,13,73796,88,88,84414.513,19,08,61,378.003,19,08,61,378.00329.33329.3350,94,41,708.00CommercialLightingLT-361.116 &61.11723.116 &23.1172,54,63428,08,98,9324.211,94,47,18,755.001,94,47,18,755.00692.32692.323,61,47,199.00IP-Sets (10 HP& below)LT-4a61.122 / 61.30123.1225,03,4683,60,95,43,83154.0413,82,04,78,114.002,02,92,00,000.0015,84,96,78,114.00382.89439.1063,14,33,8071.00IP-Sets (above10 HP)LT-4b61.12123.12147329,89,3040.041,03,73,294.001,03,73,294.00347.01347.013,23,73,797.00PrivateHorticulturalLT-4c61.127,61.12823.127, 23.128641,82,5790.002,82,236.002,82,236.00154.58154.588,29,079.00LT IndustrialWater supply/Public streetlightsLT-5LT-661.129 to61.13361.14423.129 to23.13323.14476,51139,11928,28,49,03526,60,60,9594.233.981,36,54,41,742.001,14,52,07,273.001,36,54,41,742.001,14,52,07,273.00482.75430.43482.75430.4314,18,93,289.001,91,31,49,140.00Tempararypower supplyLT-761.14523.14516,7961,50,48,5510.2320,59,02,383.0020,59,02,383.001,368.251,368.25(5,24,80,948.00)TOTAL - LT 35,57,168.00 5,57,66,05,136 83.49 21,86,24,16,953.00 2,59,08,000,00.00 24,45,32,16,953.00 392.04 438.50 9,38,67,53,603.00131 9th Annual Report 2010-11

AVERAGE REALIZATION RATE FROM SALE OF POWERAccountHead LTCategoryTariffDemandSeriesA/c Code No ofConsumersClosingBalanceSeriesUnits Sold RevenueDemandUnits % ofUnitsSoldTariffSubsidyTotal Revenue AverageRealisationRatePaiseper UnitwithoutSubsidyAverageRealisationRatePaise perUnit withSubsidy1 2 3 4 5 6 7 8 9 10 11=(8/6)*100 12=(10/6)*100 13ClosingBalanceWater Supply HT-1 61.250 23.250 15214,65,18,538 2.1961,05,18,073.0061,05,18,073.00 416.68416.6819,64,32,447.00HT IndustrialHT-2a61.25523.25582176,54,54,77711.464,14,17,45,222.004,14,17,45,222.00541.08541.0819,08,43,960.00CommercialinstallationHT-2b61.25623.2563908,91,45,7641.3360,03,75,721.0060,03,75,721.00673.48673.483,43,58,583.00Lift irrigationsocietiesPrivateHorticulturalHT-3aHT-3b61.262,61.263& 61.26561.26423.262,23.263 &23.26523.2641138,20,82,0571.230.0012,77,01,515.0012,77,01,515.000.00155.580.00155.580.0071,70,6022.000.00Residen.Apartments- Hubli /DharwadMunciplecorporationHT-4a61.27223.272621,56,4800.0396,08,929.0096,08,929.00445.58445.581,94,565.00Residen.Apartments -U L B's otherthan HT-4(a)HT-4b61.27323.273461,76,08,1360.264,23,23,294.004,23,23,294.00TOTAL - HT 1528 1,10,29,65,752 16.51 5,53,22,72,754.00 0.00 5,53,22,72,754.00 501.58 501.58 49,63,52,591.00240.36240.3628,17,014.00TOTAL (LT+HT) 3558696 6,67,95,70,887 100.00 27,39,46,89,707.00 2,59,08,00,000.00 29,98,54,89,707.00 410.13 448.91 9,88,31,06,194.00Hubli Electricity Supply Company Limited 132

AVERAGE REALIZATION RATE FROM SALE OF POWERAccountHead LTCategoryTariffDemandSeriesA/c Code No ofConsumersClosingBalanceSeriesUnits Sold RevenueDemandUnits % ofUnitsSoldTariffSubsidyTotal RevenueAverageRealisationRate Paiseper UnitwithoutSubsidyAverageRealisationRatePaise perUnit withSubsidy1 2 3 4 5 6 7 8 9 10 11=(8/6)*100 12=(10/6)*100 13ClosingBalanceElectricity TaxLT+HT23.301,23.3020.0017,62,36,640.00BRP-II Arrearsrecovered fromRevenue fromsale of power61.1520.00Wheelingchargesrecoveries61.8000.00MiscellaneousReciepts fromconsumers61.90023.7001,33,37,61,523.001,33,37,61,523.004,81,79,07,896.00Provision forUBR23.4000.001,79,20,73,730Less: Withdrawalof RevenueDemand83.83023.800(28,66,03,803.00)(28,66,03,803.00)(4,68,87,017.00)Provision forDoutful dues23.9000.00(96,67,97,010.00)Solar Rebateallowed toconsumers78.822(71,43,549.00)(71,43,549.00)Incentivre forpromt payment78.823(15,33,719.00)(15,33,719.00)Time of day(TOD) TariffIncentive78.826(23,22,593.00)(23,22,593.00)GRAND TOTAL 35,58,696 6,67,95,70,887 100 28,43,08,47,566.00 2,59,08,00,000.00 31,02,16,47,566.00 410.13 448.91 15,65,56,40,433.00133 9th Annual Report 2010-11¸ÀPÁðj ªÀÄÄzÀæuÁ®AiÀÄ, «PÁ¸À ¸ËzsÀ WÀlPÀ, ¨ÉAUÀ¼ÀÆgÀÄ, PÁ¸ÀÆ ¦071-¦1-500 ¥ÀæwUÀ¼ÀÄ