Sri Kalvakuntla Chandrashekar Rao

Hon’ble Chief Minister of Telangana

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CONTENTS
S.No. Particulars Page No.

1. Notices 04
 Notice of Annual General Meeting
 Notice of Extra Ordinary General Meeting 08

2. Board of Directors 13

3. CMD’s Letter to Stake Holders 17

4. Director’s Report 25
 MGT9 42

 Independent Auditor’s Report along with Management Replies 51

 Secretarial Auditor’s Report along with Management Replies 72
 Conservation of Energy Report 76
 C&AG. Audit Report along with Management Replies 78

5. Financial Statements 85
 Balance Sheet 86
 Statement of Profit & Loss 88
 Cash Flow Statement 90
 Significant Accounting Policies & Notes Forming
Part of Accounts 92

6. Independent Auditors Report 143

7. C & AG Report 159

8. Proxy Form 164

9. Average Realisation from Sale of Power 165

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Sri Guntakandla Jagadish Reddy

Hon’ble Minister for Energy of Telangana
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NOTICES

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SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

(A Govt. of Telangana Undertaking)
(Formerly Central Power Distribution Company of Andhra Pradesh Ltd)
Corporate office: 6-1-50, Mint Compound, Hyderabad 500063, Telangana State, India
CIN U40109TG2000SGC034116, Website: www.tssouthernpower.com

NOTICE OF THE ANNUAL GENERAL MEETING

To
The Members of the Company
Southern Power Distribution Company of Telangana Limited

NOTICE IS HEREBY GIVEN THAT THE 21ST ANNUAL GENERAL MEETING OF THE
COMPANY WILL BE HELD AT SHORTER NOTICE ON MONDAY, 29TH DAY OF NOVEMBER,
2021 STARTS AT 12:00 NOON AT THE REGISTERED OFFICE OF THE COMPANY AT 6-1-50,
MINT COMPOUND, HYDERABAD TO TRANSACT THE FOLLOWING BUSINESS:

ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet, Profit & Loss Account and Cash flow Statement
as at 31st March, 2021 along with Statutory Auditors Report, Secretarial Audit Report, Director’s Report
and along with the comments of the Comptroller and Auditor General of India thereon.
2. To take note on re-appointment of M/s. Ramanatham & Rao (HY0142), Chartered Accountants, as Statutory
Auditors of the Company appointed by the Comptroller and Auditor General of India for the Financial
Year 2021-22 and authorize the Board of Directors to fix the remuneration of Statutory Auditors

The Office of the Comptroller and Auditor General of India vide No. CA.V/ COY / TELANGANA, CENPOW
(1) / 1757, Dated 27.08.2021 appointed M/s. Ramanatham & Rao, (HY0142), Chartered Accountants as
Statutory Auditors of the Company for the financial year 2021-22.

Draft resolution
To consider and, if thought fit, to pass with or without modification, the following resolution as an Ordinary
Resolution:

“RESOLVED THAT the re-appointment of M/s. Ramanatham & Rao (HY0142), Chartered Accountants
as Statutory Auditors of the Company for the Financial Year 2021-22 by the Office of the Comptroller and
Auditor General of India vide their letter No. CA.V/COY/TELANGANA, CENPOW(1) / 1757,
Dated 27.08.2021 be noted.”

“FURTHER RESOLVED THAT the pursuant to the provisions of Section 142 and other applicable
provisions, if any, of the Companies act, 2013, the Board of Directors of the Company be and are hereby
authorized to fix the remuneration payable to Statutory Auditors M/s. Ramanatham & Rao (HY0142),
Chartered Accountants and to provide for reimbursement of their actual out-of-pocket expenses for the
Financial Year 2021-22 if any.”

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SPECIAL BUSINESS:
3. RATIFICATION OF THE REMUNERATION OF THE COST AUDITOR FOR THE
F.Y. 2021-22
The Board considered the recommendation of Audit Committee in regard to the appointment of
M/s. B.V.S. & Co., Cost Accountants, Hyderabad, as Cost Auditor for the F.Y.2021-22 and it was decided
to pay the remuneration of Rs.60,000 (all inclusive).”

Draft resolution:
To consider and, if thought fit, to pass with or without modification, the following resolution as an Ordinary
Resolution:

“RESOLVED THAT pursuant to the provisions of Section 148(3) and other applicable provisions, if any,
of the Companies Act, 2013 (including any statutory modification or re-enactment thereof for the time
being in force) and the Companies (Audit and Auditors) Rules, 2014, as amended from time to time, the
Company hereby ratifies the remuneration of Rs.60,000/- (all inclusive) payable to M/s. B.V.S. & Co., who
are appointed as Cost Auditors to conduct the audit of cost records maintained by the Company for the
financial year 2021-22.”

4. APPOINTMENT OF SRI G. RAGHUMA REDDY, CHAIRMAN AND MANAGING

DIRECTOR OF THE COMPANY WHO ATTAINED THE AGE OF 70 YEARS AS ON
08.11.2021.
To consider and, if thought fit, to pass with or without modification(s), the following resolution as Special
Resolution:

“RESOLVED THAT in pursuant to the provisions of Sections 196, and other applicable provisions of the
Companies Act, 2013, and the rules made thereunder (including any statutory modification or re-enactment
thereof) read with Schedule-V of the Companies Act, 2013, the approval of the members of the Company be
and is hereby accorded to the re-appointment of Sri G. Raghuma Reddy (DIN-02943771) as Managing
Director of the Company, who attained the age of 70 years w.e.f 08.11.2021 on such terms and conditions
of the orders issued by the Government of Telangana.”

5. ANY OTHER BUSINESS WITH THE PERMISSION OF THE CHAIRMAN

BY THE ORDER OF THE BOARD OF DIRECTORS OF

SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

Sd/-
Date: 22.11.2021 ANIL KUMAR VORUGANTI
Place: Hyderabad COMPANY SECRETARY

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NOTE:
1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote
instead of himself/herself and the proxy need not be a member of the company.
2. Proxy form (MGT-11) is enclosed. Instrument appointing proxy shall be deposited at the registered
office of the company by not less than 48 hours before the commencement of the meeting.
3. Pursuant to section 139 of the Companies Act, 2013 the Auditors of the Company are appointed by the
Comptroller and Auditor General of India (C&AG). In terms of Sub-Section (1) of the Section 142 of
the Companies Act, 2013 remuneration of Auditors has to be fixed by the Company in the Annual
General Meeting or in such manner as the Company in Annual General Meeting may determine.
4. The Comments of the Comptroller and Auditor General of India (C&AG) on the Annual Accounts for
the F.Y 2020-21 will be placed at the Annual General Meeting of the Company.

STATEMENT OF MATERIAL FACTS OF SPECIAL BUSINESSES REQUIRED

UNDER SECTION 102 OF THE COMPANIES ACT, 2013:
RATIFICATION OF THE REMUNERATION OF THE COST AUDITOR FOR THE F.Y. 2021-22
The Board considered the recommendation of Audit Committee in regard to the appointment of M/s. B.V.S.
& Co., Cost Accountants, Hyderabad, as Cost Auditor for the F.Y.2021-22 and it was decided to pay the
remuneration of Rs.60,000 (all inclusive).
Pursuant to the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit and
Auditors) Rules 2014 the remuneration of the Cost auditors to be ratified by the shareholders at the annual
general meeting of the company.
The Directors recommend for ratification of Item No.3 of the notice.

APPOINTMENT OF SRI G. RAGHUMA REDDY AS CHAIRMAN AND MANAGING DIRECTOR

OF THE COMPANY– WHO ATTAINED THE AGE OF 70 YEARS AS ON 08.11.2021.
The Government of Andhra Pradesh (Now Telangana) in the orders vide G.O.Ms. No. 3, dated 28.01.2010
was appointed Sri. G. Raghuma Reddy as a Director and has been extended on the Board of APCPDCL (Now
TSSPDCL) vide C.O.O.(CGM-HRD) MS.No.566, dated17.02.2012 until further orders and vide G.O.Ms.No.44,
Energy (Power-III) Department, dated 31.07.2013 for extension of tenure of Sri G. Raghuma Reddy, as a
Director (Comml), APCPDCL (Now TSSPDCL) for a period of two years & further the Government of
Telangana issued orders vide G.O. Rt. No. 15 Energy (HR) Department, dated 19.07.2014 appointed as a full
additional charge of the post of Chairman & Managing Director / TSSPDCL and was extension orders were
issued vide G.O. Rt. No. 29, Energy (HR.A1) Department, dated 29.05.2019 until further orders.
Sri G. Raghuma Reddy has attained the age of 70 years on 08.11.2021.
Section 196(3) of the Companies Act, 2013, inter alia, provides that no company shall appoint or continue
the employment of any person who has attained the age of 70 years, as Managing Director, Whole time
director or Manager unless it is approved by the members by passing a special resolution. Part 1 of
Schedule V to the Companies Act 2013.

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Sri G. Raghuma Reddy has joined as an Engineering Post Graduate from Osmania University College of
Engineering joined in erstwhile APSEB as Assistant Engineer in the year 1978 and rose to the position of
Chief General Manager in TSSPDCL and has assumed charge as Chairman & Managing Director of the
company on 19.7.2014 and APCPDCL now TSSPDCL.
As Sri G. Raghuma Reddy has attained age of 70 years, the Board of Directors recommends the resolution
in relation to his appointment as Chairman and Managing Director as per the terms and conditions of orders
issued by the Government of Telangana, for the approval of the shareholders of the Company as required
under section 196(3) of the Companies Act, 2013 and Part 1 of Schedule V to the Companies Act 2013. This
statement may be treated as justification of above appointment.
Except Sri G. Raghuma Reddy, none of the Directors and Key Managerial Personnel of the Company and
their relatives are concerned or interested, financially or otherwise in this resolution set out at item. No. 4.
The Board recommends the Resolution for your approval as Special Resolution.
None of the Promoters, Directors, Key Managerial Personnel and the relatives of the Directors & Key
Managerial Personnel of the Company is in any way concerned or interested financially or otherwise in the
above resolution.

BY THE ORDER OF THE BOARD OF DIRECTORS OF

SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

Sd/-
Date: 22.11.2021 ANIL KUMAR VORUGANTI
Place: Hyderabad COMPANY SECRETARY

Route Map

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SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

(A Govt. of Telangana Undertaking)
(Formerly Central Power Distribution Company of Andhra Pradesh Ltd)
Corporate office: 6-1-50, Mint Compound, Hyderabad 500063, Telangana State, India
CIN U40109TG2000SGC034116, Website: www.tssouthernpower.com

NOTICE OF THE EXTRA ORDINARY GENERAL MEETING

To
The Members of the Company
Southern Power Distribution Company of Telangana Limited.

NOTICE IS HEREBY GIVEN THAT THE EXTRA ORDINARY GENERAL MEETING OF THE
COMPANY WILL BE HELD AT SHORTER NOTICE ON SATURDAY THE 30th DAY OF MAY,
2020 AT 03.00 P.M AT THE REGISTERED OFFICE OF THE COMPANY AT 6-1-50, MINT
COMPOUND, HYDERABAD TO TRANSACT THE FOLLOWING BUSINESS:

SPECIAL BUSINESS:
1. TO AUTHORISE THE BOARD TO BORROW MONIES UNDER SECTION 180(1)(C) OF
THE COMPANIES ACT, 2013
To consider and, if thought fit, to pass with or without modification(s), the following resolution as Special
Resolution:

“RESOLVED THAT in supersession of the Resolution passed by the Shareholders of the Company at the
Extra Ordinary General Meeting held on 20.03.2019 and pursuant to Section 180 (1)(c) of the Companies
Act, 2013, the Board of Directors of the Company be and are hereby authorized to borrow money, from time
to time at its discretion either from the Company’s bank or any other bank, financial institutions or any other
lending institutions or persons on such terms and conditions as may be considered suitable by the Board of
Directors up to a limit not exceeding in the aggregate Rs.30,000 Crore [Rupees Thirty Thousand Crore
only] notwithstanding that the moneys to be borrowed together with the money already borrowed by the
Company (apart from temporary loans obtained from the Company’s Bankers in the ordinary course of
business) will exceed the aggregate of the paid up capital of the Company and its free reserves that it is to
say, reserves not set apart for any specific purpose.”

“FURTHER RESOLVED THAT the Board be and is hereby authorized to do all such acts, deeds and
things, to execute all such documents, instruments and writings as may be required to give effect to this
Resolution.”

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2. TO AUTHORISE THE BOARD TO CREATE CHARGE / MORTGAGE PROPERTIES OF

THE COMPANY UNDER SECTION 180(1)(A) OF THE COMPANIES ACT, 2013
To consider and, if thought fit, to pass with or without modification, the following resolution as Special
Resolution:

“RESOLVED THAT the consent of the Company be and is hereby accorded in terms of Section 180(1)(a)
and other provisions, if any, of the Companies Act, 2013, to mortgaging and/or charging by the Board of
Directors of the Company of all or any part of the immovable properties of the Company whatsoever situate
both present and future of every nature and kind whatsoever and creating a floating charge on all or any of
the movable properties of the Company and the whole of undertaking of the company to or in favour of
financial institutions for borrowing from time to time such sums of money as they deem requisite for the
purpose of the business of the Company notwithstanding that the money(s) to be borrowed together with the
money (s) already borrowed by the Company (apart from temporary loans obtained from the Company’s
bankers in the ordinary course of business ) shall not exceed the sum of rupees Rs.30,000 Crore [Rupees
Thirty Thousand Crore only] at any time.”

“FURTHER RESOLVED THAT the Board of Directors be and is hereby authorized to decide all terms
and conditions in relation to such mortgage, hypothecation, pledge and creation of charge/security, at their
absolute discretion and to do all such acts, deeds and things and to execute all such documents, instruments
and writings as may be required to give effect to this resolution”.

3. ANY OTHER BUSINESS WITH THE PERMISSION OF THE CHAIRMAN

BY THE ORDER OF THE BOARD OF DIRECTORS OF

SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

Sd/-
Date: 28.05.2020. ANIL KUMAR VORUGANTI
Place: Hyderabad COMPANY SECRETARY

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NOTE:
1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote
instead of himself/herself and the proxy need not be a member of the company.
2. Proxy form (MGT-11) is enclosed. Instrument appointing proxy shall be deposited at the registered
office of the company by not less than 48 hours before the commencement of the meeting.

STATEMENT OF MATERIAL FACTS OF SPECIAL BUSINESSES

REQUIRED UNDER SECTION 102 OF THE COMPANIES ACT, 2013:

1. TO AUTHORISE THE BOARD TO BORROW MONIES UNDER SECTION 180(1)(C) OF

THE COMPANIES ACT, 2013
Section 180(1)(C) of the Companies Act, 2013 provides that a Company shall not borrow funds in excess of
its paid up share capital and free reserves, except with the approval of the Shareholders by a Special Resolution
passed in a General Meeting. Earlier, in the Extra Ordinary General Meeting held on 20.03.2019, consent of
the Members has been obtained by the Directors to borrow up to maximum amount of Rs. 15,000 Crore
exceeding paid-up share capital and free reserves of the Company. The Company would need substantial
amount of funds to meet its various requirements. In view of the above, the borrowing limit may exceed the
permissible limits under section 180(1)(c) of the Companies Act, 2013. It is therefore proposed to increase
the borrowing limits up to Rs. 30,000 Crore.
The Directors recommends the resolution for your approval as Special Resolution.
None of the Promoters, Directors, Key Managerial Personnel and the relatives of the Directors & Key
Managerial Personnel of the Company is in any way concerned or interested financially or otherwise in the
above resolution.
2. TO AUTHORISE THE BOARD TO CREATE CHARGE / MORTGAGE PROPERTIES OF
THE COMPANY UNDER SECTION 180(1)(A) OF THE COMPANIES ACT, 2013
The borrowings of the Company are in general required to be secured by mortgages/ Charges/hypothecation or
encumbrances on all or any of the movable or immovable properties of the Company. Consent of the Members
is being sought in terms of Section 180(1)(a) of the Companies Act, 2013, to enable the Company to create
charge, hypothecate, mortgage, pledge on any movable, immovable properties of the Company, both present
and future and on the whole or substantially the whole of the undertaking or undertakings of the Company and
wherever situated and to authorize the Board to take necessary action in this regard shall not exceed the sum of
Rupees Rs. 30,000 Crore [Rupees Thirty Thousand Crores only] at any time.
The Directors recommends the resolution for your approval as Special Resolution.
None of the Promoters, Directors, Key Managerial Personnel and the relatives of the Directors & Key Managerial
Personnel of the Company is in any way concerned or interested financially or otherwise in the above resolution.

BY THE ORDER OF THE BOARD OF DIRECTORS OF

SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

Sd/-
Date: 28.05.2020. ANIL KUMAR VORUGANTI
Place: Hyderabad COMPANY SECRETARY

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Sri G. Raghuma Reddy, CMD, TSSPDCL with Hon’ble C.M. Sri K. Chandrashekar Rao
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BOARD OF
DIRECTORS

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BOARD OF DIRECTORS

SRI G. RAGHUMA REDDY

Chairman & Managing Director

SRI SANDEEP KUMAR SRI C. SRINIVAS RAO SRI G.S. RAM MOHAN RAO
SULTANIA, IAS Joint Managing Director Addl. Secretary to Govt.
Secretary to Govt. of TS, HRD, Finance, Comml. & Vigilance Finance Dept.
(FAC), Energy Dept. Director (Non-whole time) Director (Non-whole time)
Director (Non-whole time)

SRI T. SRINIVAS SRI J. SRINIVASA REDDY SRI P. NARASIMHA RAO

Director (Projects & IT) Director (Operations) Director (Finance)

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SRI G. PARVATHAM SRI K. RAMULU

Director (HR & IR) Director (Comml, DPE,
Assessment
and Energy Audit)

SRI CH. MADAN MOHAN RAO SRI S. SWAMY REDDY

Director (P & MM) Director (IPC & RAC)

COMPANY SECRETARY SRI. ANIL KUMAR VORUGANTI

STATUTORY AUDITORS M/S. RAMANATHAM & RAO., CHARTERED ACCOUNTANTS
BANKERS STATE BANK OF INDIA
FINANCIAL INSTITUTIONS RURAL ELECTRIFICATION CORPORATION LIMITED
POWER FINANCE CORPORATION LIMITED (PFC)
PTC INDIA FINANCIAL SERVICES LTD.
INDIAN RENEWABLE ENERGY DEVELOPEMENT AGENCY LTD.
REGISTERED OFFICE: 6-1-50, MINT COMPOUND, HYDERABAD 500063,
TELANGANA STATE, INDIA.
WWW.TSSOUTHERNPOWER.COM
CIN - U40109TG2000SGC034116

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21st Annual

Sri G. Raghuma Reddy, CMD, TSSPDCL with Hon’ble Sri G. Jagadish Reddy, Minister for Energy TS.
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and Sri D. Prabhakar Rao, CMD, TS TRANSCO & TS GENCO and Sri C. Srinivas Rao, JMD, HRD, Finance Comml. & Vigilance
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CMD’S LETTER
TO STAKE
HOLDERS

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About TSSPDCL:
 F.Y. 2020-21 was our 7 th continuous year of
Dear Stakeholders, operation after the formation of state of Telangana.
I am glad to present the 21st (Twenty First) Being the largest DISCOM, we served 102 Lakh
Annual Report of Southern Power Distribution consumers including 12.93 agricultural consumers.
Company of Telangana Limited, Hyderabad for  We clocked a maximum demand of 8,474 MW and
the Financial Year 2020-21. handled 44,493 MUs of energy purchased in F.Y.
2020-21 to cater to the demand of the consumers.

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 TSSPDCL is one of the best performers in the country in several operational parameters such as having
low Distribution losses and high collection efficiency i.e., Distribution losses maintaining it below 10%.
 Per-capita consumption of TS for F.Y. 2020-21 is 2,071 units as against a national average of 1,208units.

Providing Reliable and uninterrupted Power:

 The Discoms in Telangana have been successfully meeting the demand in the State without any load
shedding since 20.11.2014, as we believe that availability of quality, un-interrupted power is a key pre-
requisite for ensuring the desired economic growth in the state.
 The Peak (Maximum) Demand met by TSSPDCL in 2020-21was 8,474MW as compared to 7,284MW
in the previous year with an increase of 16.33%.
 The only Telangana Discom in India is supplying 24*7 power to all consumers including agriculture.

Providing 24 Hrs Power supply to Agl. sector:

 We have been supplying 24*7 power to agricultural consumers since 1st January, 2018. The success of
this motivated us to take on the mammoth task of 24*7 power to agricultural consumers. Due to our
tireless efforts, we have successfully completed 3 years of this endeavor on 1st January 2021.
 TSSPDCL has pro-actively undertaken network strengthening activities to deliver on this task. We have
taken various measures to strengthen the power distribution system.
 As a part of works undertaken for the Development of infrastructure, TSSPDCL have spent an amount
of Rs.11,301.5 Crore in the last 7 years after Telangana formation.
Major infrastructure developments after Telangana formation till 31st March, 2021 in TSSPDCL:
 There are 1,675 Nos. of 33/11 KV substations as on 31st March, 2021, out of which 529 Nos. of substations
were charged after Telangana formation.
 There are 16,196 km of 33 kV lines as on 31st March, 2021, out of which 5,325 km of 33KV (UG+OH)
line were commissioned after Telangana formation.
 There are 1,06,936 km of 11 kV (UG+OH) lines as on 31st March, 2021, out of which 34,542 km lines
length were charged after Telangana formation.
 There are 3,161 Nos. of PTRs as on 31st March, 2021, out of which 1,256 Nos. PTRs were commissioned
after Telangana formation.
 There are 4,57,384 Nos. of DTRs as on 31st March, 2021, out of which 1,95,450 Nos. DTRs were
erected and charged after Telangana formation.
 There are 12,63,706 Nos. of AGL services as on 31st March, 2021, out of which 3,65,314 agricultural
services were released after Telangana formation.

Flagship Programs Implemented in TSSPDCL:

Palle Pragathi Programme:
 The Hon’ble Chief Minister of Telangana State has instructed that the defects in the electrical distribution
system in the Gram Panchayats to be set right and instructed to conduct Power week for carrying out the
rectification works.
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 Power Week programme first phase commenced on 06.09.2019 and completed on 31.01.2020.
 TSSPDCL has made an expenditure of Rs. 135.30 Crore for carrying out the rectification works in all
8562 Nos. villages under TSSPDCL jurisdiction.
 Further 4th phase was commenced on dated 01.07.2021 and Rs.53.64 Crore was allotted to complete the
balance works which are under progress.
Pattana Pragathi Programme:
 The Hon’ble Chief Minister of Telangana State has instructed that the defects in the electrical distribution
system in the Municipalities/ Urban Local Bodies (ULBs) to be set right and instructed to conduct
“PATTANA PRAGATHI PROGRAMME” for carrying out the rectification works.
 Pattana Pragathi Programme commenced on 24.02.2020.
 TSSPDCL has made an expenditure of Rs. 31.82 Crore for carrying out the works under Pattana Pragathi
Programme in 87 Nos. ULBs.
 Further 3rd phase was commenced on dated 01.07.2021 and Rs.38.60 Crore was allotted to complete the
balance works which are under progress.
SC / ST Sub Plan:
 Under SC sub plan, the Govt. of Telangana is reimbursing against the electricity consumption who are
consuming (i.e 78,517consumers) up-to 50 units per month till August, 2018. Later the benefit has been
extended to 3,03,116 consumers as on 31st March, 2021 who are consuming electricity up to 101 units
per month with an amount of Rs. 175.90 Crore.
 Under ST sub plan, the Govt. of Telangana is reimbursing against the electricity consumption who are
consuming (i.e 26,769 consumers) up-to 50 units per month till August, 2018. Later the benefit has
been extended to 1,31,081 consumers as on 31st March, 2021 who are consuming electricity up to 101
units per month with an amount of Rs. 59.51 Crore.
Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) Scheme:
 REC vide letter dated 10.5.2016 has approved the DDUGJY Scheme for an amount of Rs. 336.66 Crore
+ 1.68 Crore (PMA cost) to extend the supply to Below Poverty Line (BPL) households with free of
cost for 4 Rural districts of TSSPDCL i.e. Mahabubnagar, Nalgonda, Rangareddy and Medak and
permitted to execute the works on partial turnkey/departmental basis, with scheme completion period
up to dated 30.09.2019.
 All the works are completed within completion period with an expenditure of Rs.440.86 Crore against
the scheme cost of Rs.336.65 Crore with total 48 substations charged, 6,203 Nos. DTRs erected and
3,90,453 Nos. BPL House hold services released.
Integrated Power Development Scheme (IPDS):
 Power Finance Corporation (PFC) vide letters dated 16.03.2016, dated 20.07.2017 & 28.03.2018 has
communicated the approval of 6 No’s Detailed Project Reports (DPRs) covering Distribution network
strengthening works in 35 Nos. Towns of TSSPDCL. The declaration of completion of IPDS scheme
was addressed to the ED/IPDS on dated 30.03.2019 stating that 100% works were completed and scheme
closed for an amount of Rs. 582.43 Crore against the scheme cost of Rs.472.84 Crore to maintain
uninterrupted supply in the towns.

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RT-DAS (Real Time Data Acquisition System):

 M/s.PFC sanctioned Real Time Data Acquisition System (RT-DAS) scheme on 13.12.2018 to measure
SAIFI, SAIDI and AT&C loss for 11KV feeders in 34 Nos. Non SCADA Urban towns comprising of
259 No.s 11KV feeders and shall be completed within 30 months from the date of sanction i.e. by
12.06.2021.
 Sanctioned scheme cost is Rs.3.20 Crore with 60% grant, 30% counterpart loan and 10% Discom share.
 Work awarded to M/s.SCOPE T&M Pvt Ltd, Mumbai and Out of 62 substations, material installation
completed in 12 substations and work under progress in 10 substations.
Smart Grid Pilot Project in TSSPDCL:
 TSSPDCL has formulated Smart Grid Pilot Project in Jeedimetla and Shapur Nagar sections in Jeedimetla
industrial Area, Rangareddy North circle on pilot basis. Ministry of Power has sanctioned the scheme
for Rs.41.82 Crore with 50% grants and balance 50% from internal resources of utility, with project
completion period of 18 months.
 The scheme covers 11,904 consumers including all categories.
 The functionalities of Smart Grid Pilot are Advanced Metering Insfrastructure (AMI) for residential
consumers, AMI for industrial consumers, Peak load management, Outage management and Power quantity.
 The Smart Grid Pilot Project was completed within the time frame and declared “Go Live” on
30th March, 2019 and the same was addressed to the Director, NSGM-NPMU with deployment of Single
Phase Smart Meters, Distribution Management System (DMS) equipment (ARs, Sectionalizers, RMUs
& FPIs), Transformer Monitoring Units (TMUs), Consumer Display Units (CDUs) along with hardware
and software.
Rural feeder Monitoring Scheme:
 Main objective of the scheme is to have an access to real time rural feeder-wise information on key
parameters of power supply hours, Energy, Voltage, Current, power Outages etc.,.
 Rural feeder monitoring projects are awarded covering 2,989 11kV & 33kV feeders in TSSPDCL, out
of which a total of 2,673 no.s modems were commissioned.

Ujwal DISCOM Assurance Yojana (UDAY):

 MOU was entered between Ministry of Power, Central Government, Government of Telangana State
and TS DISCOMs on 4th January, 2017. According to the MOU the total debts taken over under UDAY
Scheme was Rs.8,923 Crore (being 75% of total outstanding loans as on 30th September, 2015 of
TSSPDCL and TSNPDCL put together).
 The Government of Telangana taken over the Loans for an amount of Rs.5,550.21 Crore of TSSPDCL
under UDAY Scheme.
Operations Improvement:
 TSSPDCL is one of the best performing DISCOM in the country in terms of operational efficiency and
has continued its improvement in Key Performance Indicator’s.
 TSSPDCL has reduced the energy losses from 9.41 % in F.Y. 2019-20 to 9.36% in F.Y. 2020-21
 Total 48,154 Nos. of Agl. Connections were released during 2020-21.
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 Total existing LT consumers were increased from 94,95,626 in F.Y.2019-20 to 98,86,911 in F.Y.2020-21
 Total existing HT consumers were increased from 9,675 in F.Y.2019-20 to 10,010 in F.Y.2020-21.
 Duration of interruptions i.e. SAIDI has been reduced from 1890.97 in F.Y.2019-20 to 1500.32 in
F.Y.2020-21.
 Percentage of complaints resolved within the Standard Operating Procedure (SOP) timelines has increased
from 83% in F.Y. 2014-15 to 90% in F.Y.2020-21.
 Percentage of new services released within the SOP stipulated timeline is 90% in F.Y. 2020-21as against
a level of 76% in F.Y. 2014-15.
 Revenue Demand has increased from 15,324 Crore in F.Y.2013-14 to 20778.12 Crore in F.Y.2020-21.

Promotion of Solar Energy:

 TSSPDCL has taken proactive measures in harnessing the solar potential in the state including the
notification of forward looking solar policy in June, 2015. This has created a stable and a conductive
environment for expedited addition of solar capacities in the state.
 Telangana has a total installed RE Capacity of 4230.51MW by the end of March, 2021, spanning across
Solar, Wind, Mini - Hydel etc.
 We have been actively encouraging solar rooftop addition through a transparent and user-friendly
application process enabled by online tracking and monitoring of applications. This has helped the
DISCOM achieve 157.07MW of solar rooftop capacity by end of March, 2021.
 I am happy to note that in a short span, TSSPDCL has been able to show substantial progress in adding
solar capacities. This is one of the highest in the country.

Key Initiatives in Operations:

IRDA port meters:
 Telangana State DISCOMs have also installed IRDA Meters, the DISCOMs have realized substantial
benefits upon installing IRDA port meters due improvement in the billing efficiency. This has greatly
reduced cases of reading suppression.
 TSSPDCL has installed IRDA Meters for 69,93,990 consumers as on 31st March, 2021 which is 76.85%
of the total metered consumers.
Prepaid Meters:
 Telangana Discoms has Prepayment mechanism using special type of energy meter which can be installed
with a prepayment or pay as you go tariff. As on 31st March, 2021, 14,686 No’s of Prepaid meters were
installed across Government offices in which 4,344 services were declared as Go-live from 01.07.2019
and are running successfully.
SCADA/DMS Project:
 SCADA was implemented in TSSPDCL in Hyderabad city with the aim to monitor and control every
network element in the sub transmission network remotely.

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 Under SCADA control all 228 Nos. of 33/11KV Sub-Stations, under DMS operation of all the 156 Nos.
11KV feeders were commissioned in core city of Hyderabad and Communication System under SCADA
DMS project has been successfully completed and declared Go-live.
New Technologies in TSSPDCL:
Digitization of consumer services:
 TSSPDCL is adopted digitization of consumer service transactions. New service connection applications,
load addition, commercial complaints received in Integrated Consumer Service Centre (ICSC/CSCs)
will be verified in the portals like CSC, SAS by the authorities in a paperless mode. Communication
with consumers will be done through email/SMS to reduce manual intervention.
Leveraged the use of SASA mobile app for field work management:
The mobile App Section Automation System Application (SASA) is developed for providing section-wise
reports pertaining to various IT Applications such as Energy Billing System (EBS), CSC, MATS, MMS,
Net Metering on both Android and iOS platforms. This App provides the facility to monitor the section-wise
Fuse of Call (FOC) complaints registered, resolved and pending.
E-Payment:
TSSPDCL has promoted digital payment of bills through various payment channels. Online payment can be
done by the consumers through web-portal and mobile application. At present, about 77% of Revenue
collection is obtained through online mode from the consumers in entire jurisdiction of TSSPDCL.
New facility of bill payment option to the consumer at any ERO Counter in TSSPDCL:
TSSPDCL has provided a new facility of bill payment option to the consumers at any Electricy Revenue
Office (ERO) Counter against their Unique Service Connection Number (USC Nos.) for improved convenience
to the consumers. Presently, the Company has 71 Nos. EROs, which are integrated together. Now, the consumers
have the facility to pay the Electricity Bills at any nearby ERO Counters, without delay.

Ease of doing business (TS-iPASS):

For entrepreneurs setting up new industries, Telangana Discoms have tied up with TS-iPASS, which acts as
a single window cell for providing all necessary clearances in a time bound & transparent manner with no
hassles. This has ensured that the state becomes a preferred destination for investors and helped in the
economic growth of the state.
As a key intervention in the release of new service connection, the Forms required have been limited to two
documents and new connection services are released within 15 days.

URJA Mitra app:

On this application, the consumer can get relevant information and updates on the scheduled outages in the
DISCOM area in advance.

Ease in HT Consumer billing:

High Tension (HT) CC Bills are also being sent to the HT Consumers through e-mails, apart from sending
by post. The CC bills are also posted at TSSPDCL website which can be downloaded by the HT Consumers
and the bill details are informed through short messages. Virtual bank accounts have been opened in the
name each and every HT Consumer and the account number and IFSC code details are displayed on individual
HT CC Bill to facilitate the consumer to pay directly in the bank account.

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Implementation of E-office:
E-office procedure was successfully implemented in TSSPDCL and all the files are being routed through
E-office only at Corporate office level. This has increased better accountably with the ultimate aim towards
better governance and timely compliance to all consumer processes.

Implementation of ERP S/4 HANA:

For improving operational efficiency of DISCOM, TSSPDCL has successfully upgraded its existing SAP ECC
6.0 ERP system to the latest SAP S/4 HANA system, and the system was Go-Live from 8th March, 2021.

TSSPDCL has been adopting technology and has designed the consumer process in a manner which provides
the consumer a lot of convenience and highest levels of transparency. Going forward, I would like to assure
you that TSSPDCL would be taking all the necessary initiatives to make it one of the most customer centric
DISCOM across India.
Awards/Recognition for TSSPDCL Initiatives during F.Y.2020-21:
The various awards and recognitions received by the TSSPDCL at multiple forums are a testament to the
continued excellence and effort that is being shown by each and every employee in the organization. In the
last five years TSSPDCL has been conferred with the following awards.
ICC- 8th Innovation with Impact Award 2020":
 Southern Power Distribution Company of Telangana Limited (TSSPDCL) was awarded as the 2 different
category like the overall winner of the 8th edition of prestigious ICC Innovation with Impact Award.
And also bagged Quality of Service & Customer Empowerment Award at the 14th India Energy Summit
2020-2021on Zoom Platform.
IPPAI Awards 2020:
 Southern Power Distribution Company of Telangana Limited (TSSPDCL) is awarded under the Category
“Best Distribution Company to promote consumer awareness “at 20th Regulators & Policy makers retreat 2020.
To conclude, I congratulate all the employees for their efforts towards achieving the goals of the company,
improved sales performance, in accomplishing the Directives of Regulatory authority, other statutory
authorities and initiated steps for institutional strengthening.
Further, I sincerely acknowledge the invaluable support and co-operation of the Spl. Chief Secretary, Energy
Department, Government of Telangana, Chairman & Managing Director, TSTRANSCO & TSGENCO and
Chairman & Managing Director of TSNPDCL, and The Secretary, TSERC and other officials of the Govt.
of Telangana, the Office of the Comptroller & Auditor General of India, the Bankers and Financial Institutions
and look forward to their continued support in the future.
Thank You,

Sd/-
Raghuma Reddy Gauravaram
Chairman and Managing Director/TSSPDCL

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DIRECTOR’S
REPORT

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DIRECTOR’S REPORT
To
The Members
Southern Power Distribution Company of Telangana Limited.

The Directors are pleased to present the Twenty First Annual Report on the business and operations of your
company together with the Audited Statements of Accounts for the year ended on 31st March, 2021.

1. FINANCIAL RESULTS:
The financial results of the Company for the year ended 31st March 2021 the Company could earn an aggregate
income of Rs. 24,144.01 Crore. The financial performance of the Company is as follows:

S.No Particulars 2020-21 2019-20

(Rs. in Crore) (Rs. in Crore)
1. Revenue from Operations 24073.41 24600.86
2. Other Income 70.60 46.78
Total Income 24144.01 24647.65
3. Power Purchase Cost 23703.06 24907.26
4. Employee Benefit expense 2240.77 2314.44
5. Operation and Other Expenses 288.47 261.68
6. Interest and Finance Charges 1905.46 1489.50
7. Depreciation 1066.58 986.56
8. Exceptional items (437.74) 148.66
9. FSA Written off - -
10. Fixed Assets RESCOs- Write Off - -
11. FSA and Other Provisions - -
12. Provision for Govt. Receivables - -
Total Expenses 28766.61 30108.10
13. Profit/(Loss) Before Tax (4622.60) (5460.45)
14. Provision for Income Tax - -
15. Deferred Tax Income Provision 376.64 520.20
Net Profit/(Loss) (4245.96) (4940.25)

2. UDAY SCHEME
Ujwal Discom Assurance Yojana (UDAY), a Scheme for the financial turnaround of the Power Distribution
Companies (DISCOMs), was announced / approved vide Ministry of Power, Government of India, Office
Memorandum No. 06/02/2015-NEF/FRP, Dated 20th November, 2015, with an objective to improve the
operational and financial efficiency of the State DISCOMs.

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As per the Scheme the State shall take over 75% of DISCOM debts as on 30th September, 2015 including
DISCOM bonds which were committed to be taken over by the State as part of Financial Restructuring Plan
2012 (FRP 2012).
MOU was entered between Ministry of Power, Central Government, Government of Telangana State and
TS DISCOMs on 4th January, 2017. According to the MOU the total debts taken over under UDAY Scheme
was Rs. 8,923 Crore (being 75% of total outstanding loans as on 30th September, 2015 of TSSPDCL and
TSNPDCL put together).
The Govt. of Telangana taken over the Loans for an amount of Rs. 5,550.21 Crore of TSSPDCL under
UDAY Scheme and out of which an amount of Rs. 4876.83 Crore were released.

3. STATE OF COMPANY’S AFFAIRS – Section 134(3)(i) OF COMPANIES ACT, 2013

Introduction
In exercise of the powers conferred under section 3 of the Telangana Districts (Formation) Act, 1974, the
Governor of Telangana, in the interests of better administration and development of the area concerned,
after taking into consideration of the objections and suggestions received from various people and public
representatives, by altering the boundaries of existing Districts as specified in Section 3 of the Central Act
No. 6 of 2014.

With a vision to fulfill the expectation of the Telangana Government Southern Power Distribution Company
of Telangana Limited, which came into being on 2nd June, 2014, with an objective of providing Electricity
to the people at an affordable prices. TSSPDCL having its headquarters at Hyderabad and encompasses an
area of 15 districts viz., Hyderabad, Mahabubnagar, Nalgonda, Yadadri Bhuvanagiri, Suryapet, Siddipet,
Medchal, Wanaparthy, Nagarkurnool, Jogulamba Gadwal, Narayanpet, Sangareddy, Medak, Vikarabad and
Rangareddy Catering to the power requirements of 9.75 million consumers.

The philosophy of TSSPDCL is to enhance its performance and emerge stronger by the day to offer its
customers the best and value for money.

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TELANGANA STATE TSSPDCL

DISTRICTS
 Hyderabad
 Sangareddy
 Medak
 Siddipet
 Mahabubnagar
 Wanaparthy
 Nagarkurnool
 Gadwal
 Nalgonda
 Suryapet
 Yadadri
 Rangareddy
 Vikarabad
 Medchal
 Narayanpet

OPERATIONAL PERFORMANCE
Significant achievements during F.Y.2020-21 are given below
 The Company achieved metered sales of 28585.10 MU in F.Y.2020-21 as against 30162.87 recorded
during F.Y.2019-20. The metered sales percentage to energy input was at 64.25% in F.Y.2020-21 as
compared to 66.66% in F.Y.2019-20.
 Energy input was at 44492.99 MU in during 2020-21 as against 45247.02 MU in the Previous Year
2019-20.
 The peak period demand met in Current Financial Year (CFY) is 8474 MW as against the Previous
Financial Year (PFY) 7284 MW.
 The Company has supplied 11744.84 MU Energy to the Agriculture Sector as against 10818.40 MU
against previous year. The energy supplied to agricultural sector constitutes 26.40% of total energy
input in F.Y.2020-21. Assessment of agricultural energy is being done by ISI methodology approved by
Electricity Regulatory Commission (ERC) from F.Y.2013-14.
 The maximum consumption on a day was 180.51MU as against 152.38 MU in the previous year.

Reduction of Energy Losses:

During F.Y.2020-21, a number of measures were adopted that contributed to the on-going efforts to reduce
energy losses. The initiatives include:

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 Energy Audit of 70 Towns and 157 Mandal Head Quarters.

 Impact of above measures is apparent. The energy losses in F.Y.2020-21 are lower than the previous
year. The Energy Losses percentage decreases to 9.36% in 2020-21 as against 9.43% in F.Y.2019-20.
 Arrested the theft of power by regular Detection of Pilfereage of Energy (DPE) wings by conducting
inspections and special intensive inspections with the DPE & Operation Wings of all circles. During the
F.Y.2020-21, In both HT & LT connections Total 121291 no. of cases were booked for theft, Unauthorized
usage, Back billing/Short billing and non payment of Development Charges.

PROJECTS DATA
During F.Y.2020-21 the following works have been completed to strengthen the distribution system and the
infrastructure of the Company is as follows:

S.No. Particulars Total as on Achievement in Total as on

31.03.2020 F.Y. 2020-21 31.03.2021
1 No. of 33 / 11 KV Substations 1644 31 1675
2 Lines (in KM)
33KV 16054.93 141.43 16196.36
11KV 103353.34 3582.62 106935.96
Low Tension 227660.86 4820.15 232481.01
3 High Voltage Distribution System 32669 0 32669
(HVDS) for (DTRs)
High Voltage Distribution System 95219 0 95219
(HVDS) for Agriculture Pump Sets
Note: Last year Lines data was reconciled and updated figures were taken into consideration

ON GOING PROJECTS & SCHEMES STATUS AS ON 30.08.2021

I. Integrated Power Development Scheme (IPDS)
 Power Finance Corporation (PFC) vide letters dated 16.03.2016, dated 20.07.2017 & 28.03.2018 has
communicated the approval of 6 Nos. Detailed Project Reports (DPRs) covering Distribution network
strengthening works in 35 Nos. Towns of TSSPDCL for an amount of Rs.472.84 Crore and permission
to execute the works on Partial turnkey/departmental basis, with scheme completion period up to
dated 31.03.2019.
 The declaration of completion of IPDS scheme was addressed to the ED/IPDS on dated 30.03.2019
stating that 100% works were completed.
 Works completed as on 31.03.2019 are as detailed below:
Out of 33 Nos. SS, 33 Nos. SS charged, 106.0 km of 33 KV line, 218.96 km of UG cable, 6470 Nos. DTRs,
599.40 km of new 11 KV line, 325.45 km of Augmentation of 11 KV line 1167.52 km new LT line, 1681.40
km of Bifurcation/Augmentation of LT line, 422.7 km of AB Cable and 159 Nos. RMUs are erected.

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 IPDS scheme is closed for Rs.582.43 crore and the same was approved by State Level Distribution
Reforms Committee (SLDRC).
 The closure report along with final claims of Rs.484.96 crore against scheme cost of Rs.472.84 crore
was sent to M/s.PFC/MoP and the same was approved by M/s.PFC/MoP.
 So far, GoI Grant released from MoP is Rs. 277.46 crore against 60% GoI grant of Rs.283.70 crore.
Release of balance grant amount of Rs.6.24 crore is under process by MoP/GoI.

II. Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

 REC vide letter dated 10.05.2016 has approved the DDUGJY Scheme for an amount of Rs. 336.66
crore + 1.68 crore (PMA cost) for 4 Rural Districts of TSSPDCL i.e., Mahabubnagar, Nalgonda,
Rangareddy and Medak and permission to execute the works on Partial turnkey/departmental basis,
with scheme completion period up to dated 30.09.2019.
 Works completed as on 31.03.2019 are as detailed below:
 Out of 48 Nos. SS, 48 Nos. SS Charged 1087 km 6.3/11 KV line, 204 km, 33 KV line, 6155 Nos.
DTRs are erected. 3,90,252 Nos. BPL HHs services released against target of 2,85,240 Nos. BPL
services. Infra works under the scheme are completed.
 DDUGJY scheme is closed for Rs.444 crore (without overheads) and the same was approved by State
Level Standing Committee (SLSC).
 The closure report along with final claims of Rs.440.86 crore against scheme cost of Rs.336.65 crore
was sent to M/s.REC/MoP.
 So far, grants released from MoP are Rs. 154.85 crore against 60% GoI grant of Rs. 201.99 crore and
Release of balance grant amount of Rs.47.14 crore is under process by MoP/GoI.

III. Smart Grid Pilot Project in TSSPDCL

 TSSPDCL has formulated Smart Grid Pilot Project in Jeedimetla and Shapur Nagar sections in Jeedimetla
industrial Area, Rangareddy North circle. Ministry of Power (MoP) has sanctioned the scheme for
Rs.41.82 crore with 50% grants and balance 50% from internal resources of utility, with project completion
period of 18 months.
 An agreement was concluded with M/s. ECIL vide Agreement No. 01/2015-16, dated 17.03.2016. The
project completion period as per agreement is 18 months i.e., dated 16.09.2017 from the date of issue of
Notice to proceed dated 17.03.2016. As per the 13th MCM of IPDS and SGPP held in October, 2018, the
completion period of Smart Grid Pilot Projects is extended up to 31st December, 2018.
 M/s. ECIL have supplied and commissioned all Hardware & Software in respect of DMS components
and Single Phase Smart Meters.
 A letter was addressed to the Director, NSGM – NPMU regarding declaration of the Smart Grid Pilot
Project as Go Live on 30th March, 2019 with deployment of single Phase Smart Meters, DMS equipment
(ARs, Sectionalizers, RMUs & FPIs), Transformer Monitoring Units (TMUs), Consumer Display Units
(CDUs) along with hardware and software.

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IV. RT-DAS (Real Time Data Acquisition System)

 M/s.PFC sanctioned Real Time Data Acquisition System (RT-DAS) scheme on 13.12.2018 to measure
SAIFI, SAIDI and AT&C loss for 11 KV feeders in 34 Nos. Non SCADA Urban towns comprising of
62 Nos. substations and 259 Nos. 11 KV feeders.
 Sanctioned scheme cost is Rs.3.20 crore with 60% grant, 30% counterpart loan and 10% Discom share.
 Work awarded to M/s. SCOPE T&M Pvt. Ltd, Mumbai on 10.12.2019 for Rs. 2.95 crore.
 Agreement concluded with M/s Scope T&M(P) Ltd. vide Agt. No.01/2020-21, dated 08.09.2020.
 M/s. SCOPE T&M Pvt. Ltd. has completed material installation at all 62 Nos. substations as per sanctioned
quantity. Further installed Servers, Server panels, Routers, Switches at Control Centre/SCADA. Software
integration with substations is under progress.

V. Mission Bhagiratha:
 The Water Grid Programme aimed at supplying drinking water to all households in the State has been
named Telangana Drinking Water Project. For executing the project, the state government has decided
to set up Telangana Drinking Water Supply Corporation Limited.
 The RWS officials and DISCOM officials were conducted joint inspection and identified 16 Nos. 33
KV locations (33 KV level) and 60 Nos. 11 KV locations (11 KV Level).
 All the estimates have been prepared and sanctioned for Water Grid locations in various Circles of
TSSPDCL.

 33/11 KV New Substations:-

Total No. of Substations proposed Completed Balance to be completed
14 14.00 0

 33 KV Line Works:-
Total Length of line proposed (in Km) Completed Balance to be completed
249.94 249.94 0

 11 KV Line Works:-

Total Length of line proposed (in Km) Completed Balance to be completed

254.94 254.94 0

 Distribution Transformers:-
Total No. of DTRs proposed Completed Balance to be completed
126 126.00 0

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 The Chief Secretary has instructed the RWS & S Officials that Rs. 100 crore may be deposited to
Distribution Companies based on the prorata basis.
 An amount of Rs. 96.09 crore (33.00 + 13.09 + 50.00) have been received in TSSPDCL B&R Account
towards Telangana State Water Grid Works in 1st, 2nd & 3rd Phases.
 The Circle wise abstract of utilization particulars of Mission Bhagiratha works is as given below and the
same was communicated to the Engineer-in-Chief, RWS & S Department, SRTGN Bhavan, Vth Floor,
Errum-Manzil Colony, Hyderabad.

S. No. Name of the Circle No. of Works (Rupees

in Crore)
1. Mahabubnagar 39 19.28
2. Wanaparthy 16 14.83
3. Gadwal 2 7.99
4. Nagarkurnool 11 10.63
5. Nalgonda 41 30.48
6. Suryapet 11 7.96
7. Yadadri 11 1.73
8. Medak 11 2.71
9. Siddipet 10 3.58
10. Sangareddy 18 17.88
11. Cybercity 1 1.27
12. Rajendranagar 10 18.78
13. Vikarabad 15 8.32
14. Medchal 2 2.02
Total 198 147.45
Amount received 96.09 crore (33.00+13.09+50.00) crore 96.09
Balance Amount to be received 51.36

4. Telangana Solar Power Policy 2015:

In the last decade, due to increasing thrust of Governments across the world towards fuel conservation and
clean energy, solar power capacity has increased by over 45 times and stands at about 184 GW in 2014. In
India, capacity additions in solar power have been even more remarkable. The total solar capacity in Telangana
has grown to nearly 3912.56 MW as on 28.08.2021.
This policy of GoTS on solar has provisions which aims at creating an enabling environment for prospective
solar power developers to harness substantial quantum of solar power in the best possible manner. This in
turn is expected to meet the objective of GoTS to provide competitive, reliable power supply to its consumers
and also to ensure a sustainable fuel mix in the long run.

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Some of the key benefits of the Policy are as mentioned below:

 Single window clearance
 Deemed conversion to Non-agricultural land status
 Exemption from Land ceiling Act
 Transmission and Distribution charges for wheeling of power
 Power scheduling and Energy Banking
 Electricity Duty (ED)
 Cross subsidy Surcharge (CSS)
 Grid Connectivity and Evacuation facility
 Payment of Development Charges and Layout fee
 Refund of VAT
 Refund of Stamp Duty
 PCB clearances
 Provisions under the Factories Act
 Solar Rooftop Projects
This policy shall come into operation with effect from the date of issue and shall remain applicable for a
period of 5 years. All Solar Projects that are commissioned during the operative period shall be eligible for
the incentives declared under this policy, for a period of ten (10) years from the date of commissioning.

ABSTRACT OF INSTALLED CAPACITIES

S.No. Type of Power/Generating Total Installed Telangana Share TSSPDCL allocation
Station Capacity in MW in MW in MW
1 TS GENCO Thermal 3772.50 3772.50 2661.50
Hydel 2572.20 2389.91 1686.08
2 Central Sector 16575.00 2691.66 1917.87
3* Joint Sector/ IPPs 0 0 0
4** Non Conventional (Sale to Discoms) 3759.30 3759.30 2656.55
5 Others 3820.00 3589.45 2532.36
Total 30499.00 16202.82 11454.36
*Power Share from APGPCL (Joint Sector) is not being availed from February, 2020.
** Synchronized to grid values.

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Solar and Wind Power Projects Synchronized to the grid

Solar Power Sale to DISCOM in MW Third Party & Solar Net Meter Total (MW)
Projects Solar Wind Captive in MW in MW

3290.00 100.80 371.29 173.08 3935.17

ROOF TOP SOLAR (RTS)

In order to promote investments and encourage the renewable energy generation in the state, the Government
of Telangana has issued the Telangana solar power policy, 2015, wherein it provides attractive incentives
and provisions to encourage solar roof top projects(SRP) adoption. Accordingly, the TSERC has issued
regulation no.06 of 2016 for Roof top solar photovoltaic systems.
The Roof top solar systems installed capacity up to F.Y.2018-19 is 70.004 MW.
Phase II of Grid connected Rooftop (GCRT) Solar programme
 Under the phase II of GCRT Solar programme, The MNRE has allocated 10.78MW for F.Y.2019-20
and 20 MW for F.Y.2020-21 for RTS system implementation in residential sector.
 Accordingly, TSSPDCL has entered Memorandum of Understandings (MoU’s) with TSREDCO to
take assistance of TSREDCO (State Nodal Agency for the State of Telangana) for implementation of
Rooftop solar in residential sector.
 So far, the phase II programme is under implementation which in turn facilitate for deployment of
Rooftop solar systems of 179.61 MW capacity as on 31.08.2021 in TSSPDCL.
 The following table depicts the progress made in residential sector under Phase II of GCRT solar
programme:

Financial Allocation in Released capacity Validity

Year residential sector (in MW) as on 31.08.2021
2019-20 10.78 MW 9.187 MW 19.08.2021
2020-21 20.00 MW 0.748 MW 25.02.2022

5. DIVIDEND
As there are no Profits from operations, the Directors do not recommend any dividend in the F.Y.2020-21.
6. Details of the Deposits as per the Chapter V Section 73 of the Companies act, 2013
The Company has not accepted any public deposits within the meaning of Section 73 of the Companies act,
2013 and as such no amount on account of principal or interest on public deposits was outstanding as on
31st March, 2021.
7. EXTRACT OF THE ANNUAL RETURN AS PER 92(3), RULE 12 IN FORM MGT
9-134(3)(A)
Form MGT 9 is enclosed as Annexure – A. Page No. 42
8. NUMBER OF MEETINGS OF THE BOARD – 134(3)(B)
The Number of Board Meeting held during the Financial Year and as on 31.03.2021 are as mentioned below:

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S. No. Date of meeting Total No. of Directors No. of Directors % of

on the Date of Meeting attended Attendance
1. 16.09.2020 11 11 100%
2. 03.11.2020 11 11 100%
3. 31.12.2020 11 11 100%
4. 30.03.2021 11 10 90.9%

9. DIRECTORS’ RESPONSIBILITY STATEMENT AS PER 134(5) - 134(3)(C)

Pursuant to section 134(5) of the Companies Act, 2013, your directors confirm and report that:
a) In the preparation of the annual accounts, the applicable accounting standards had been followed along
with proper explanation relating to material departures.
b) The directors had selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of
the company at the end of the financial year and of the profit and loss of the company for that period.
c) The directors had taken proper and sufficient care for the maintenance of adequate accounting records
in accordance with the provisions of this Act for safeguarding the assets of the company and for preventing
and detecting fraud and other irregularities.
d) The directors had prepared the annual accounts for the F.Y.2020-21 on a going concern basis.
e) The directors had devised proper systems to ensure compliance with the provisions of all applicable
laws and that such systems were adequate and operating effectively.

10. EXPLANATION / COMMENTS BY THE BOARD ON EVERY QUALIFICATIONS,

RESERVATIONS, ADVERSE REMARKS OR DISCLAIMERS MADE BY THE
STATUTORY AUDITORS & THE PRACTICING COMPANY SECRETARY IN THEIR
REPORTS – 134(3)(F)
Statutory Auditor Report along with Management Reply is enclosed at Annexure – B. Page No. 67
Secretarial Auditor Report along with Management Reply is enclosed at Annexure – C. Page No. 75

11. PARTICULARS OF THE LOANS, GUARANTEES, SECURITY OR INVESTMENTS AND

THE PURPOSE FOR WHICH THE LOAN, GUARANTEE OR SECURITY IS PROPOSED
TO BE UTILISED BY THE RECIPIENT AS PER 186 – 134(3)(G)
The complete financial details are available in the Balance sheet.

12. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH THE RELATED

PARTIES ALONG WITH THE JUSTIFICATION FOR ENTERING INTO SUCH
TRANSACTIONS AS PER 188(1) – 134(3)(H) & RULE 8(2) - FORM AOC 2
The Ministry of Corporate Affairs (MCA) vide Notification dated 5th June, 2015, has exempted the government
companies from Related Party Transactions under Section 188(1) & 188(2).

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13. AMOUNT PROPOSED TO BE CARRIED TO RESERVES – 134(3)(J)

Rs. (4,245.95) crore was carried to Reserves for the F.Y.2020-21.

14. MATERIAL CHANGES & COMMITMENTS, IF ANY AFFECTING THE FINANCIAL

POSITION OF THE COMPANY, OCCURRED BETWEEN THE END OF THE FINANCIAL
YEAR TO WHICH THIS FINANCIAL STATEMENTS RELATE AND THE DATE OF THE
REPORT – 134(3)(L)
1. Consequent on Formation of Telangana State w.e.f. 02.06.2014, the APCPDCL has been renamed as
TSSPDCL duly excluding the Kurnool and Ananthapur circles which have become part of Residuary
State of Andhra Pradesh and merged with the Existing APSPDCL.
2. Since for bifurcation of Assets and Liabilities as on 01.06.2014 in respect of Kurnool and Ananthapur
circles between the TSSPDCL and APSPDCL, the Expert Committee was formed and as per the
instructions of the Committee and guidelines of G.O.Ms. No. 24 issued by the Government and also as
per the AP Reorganization Act, 2014. The statement of bifurcation of Assets and Liabilities have been
prepared and approved by the TSSPDCL Board on 20.04.2015 and submitted to the Expert Committee
for its approval. The Expert Committee Approved it on 27.02.2018 and the same was communicated to
Government of Telangana for further instructions and implementation.
3. During the Financial Year 2016-17, State Government of Telangana vide G.O.Ms. No. 225, 234 and
240 Dated 11.10.2016, has issued orders for reorganization of districts and formation of new districts in
the state of Telangana. Accordingly 7 Revenue Mandals under the territorial jurisdiction of TSNPDCL
have been merged with Siddipet district of TSSPDCL, Gundala Mandal of Nalgonda which is under the
territorial jurisdiction of TSSPDCL has been Demerged/Hived off and merged with Jangaon District
under the territorial jurisdiction of TSNPDCL.
4. The Govt of Telangana vide G.O.Ms. No. 20 Dated 23.02.2019 has re-transferred the Gundala Mandal from
TSNPDCL Jurisdiction to TSSPDCL and with regard to the transfer of assets and liabilities, the TSSPDCL
has taken over the Network of Gundala Mandal w.e.f. 02.04.2019 which was during the F.Y.2019-20.
Accordingly, the assets and liabilities of Gundala are incorporated in the Financial Year 2019-20.
5. AP GENCO has filed the petition before the Hon’ble National Company Law Tribunal (NCLT) for
initiating Corporate insolvency process against the company for non- payment of dues. The petition is
withdrawn by APGENCO.

15. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE

EARNINGS AND OUTGO – 134(3)(M) & RULE 8(3)
Statement is enclosed at Annexure–D. Page No. 76.
16. DEVELOPMENT AND IMPLEMENTATION OF A RISK MANAGEMENT POLICY,
INCLUDING THE IDENTIFICATION THEREIN OF THE ELEMENTS OF RISK, WHICH
IN THE OPINION OF THE BOARD MAY THREATEN THE EXISTENCE OF THE
COMPANY – 134(3)(N)
The Company is faced with risks of different types, all of which need different approaches for mitigation.
Various risks associated with the business of the Company are given below:

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Operational risk: To mitigate operational risks associated with distribution network, the company invests
significant resources in the maintenance and protection of its critical equipments, details of which were
mentioned above.
Regulatory risk: Electricity is a highly regulated sector. This exposes the company to risks with respect to
changes in policies and regulations which are similar to all players in the sector.
Financial risk: Company is having a loss of Rs. 4245.96 crore and Total Indebtedness of the company
Rs.18,917 crore. Ujwal Discom Assurance Yojana (UDAY), a Scheme for the Financial Turnaround of the
Power Distribution Companies (DISCOMs), whose details are mentioned above in item no.2 of the Directors
Report in detail.
The Board of Directors of the Company are competent to take decisions on the Risk mitigation and take
appropriate measures for risk management.

17. DETAILS OF THE POLICY DEVELOPED AND IMPLEMENTED ON THE CSR AND THE
INITIATIVES TAKEN, COMPOSITION OF CSR COMMITTEE – 134(3)(O), RULE 9 &
ANNEXURE TO THE CSR RULES
The Present Corporate Social Responsibility (CSR) Committee Consisting of the following members:

SL. No Name Designation

1 Sri Sandeep Kumar Sultania, IAS Secretary to Government [FAC], Energy Dept
2 Sri C. Srinivasa Rao, IRAS JMD/TSTRANSCO
3 Sri G.S.Ram Mohan Rao Additional Secretary to Govt., Finance Dept.
4 Sri P. Narasimha Rao, IRS Director/Finance/TSSPDCL

The reconstitution of Corporate Social Responsibility (CSR) committee was approved by the board in its
162nd Board Meeting held on 03.11.2020.
The Company shall take the necessary Corporate Social Responsibility (CSR) Activities as and when required
according to the company policy and CSR Committee shall monitor the same.
18. IF THE COMPANY FAILS TO SPEND THE REQUIRED AMOUNT ON CSR, THE
REASONS THEREOF – 135(5)
Reasons for failure to spend the required amount on CSR
Since the company is not having any profits and having a loss Rs. 4,245.95 crore the company couldn’t
spend any amount on CSR. Hence this clause is not applicable.
However, the Company shall take the necessary Corporate Social Responsibility (CSR) Activities as and
when required according to the company policy and CSR Committee shall monitor the same.

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19. DETAILS OF THE DIRECTORS/ KMP – APPOINTED AND RESIGNED – RULE 8(5)(III)

Name of the Director Nominee Director Date of Date of cessation,

appointment if applicable
Sri G. Raghuma Reddy Chairman and Managing Director 26.11.2014 NA
Sri P. Narasimha Rao, IRS Director/Finance 06.09.2018 NA
Sri T. Srinivas Director/Projects & IT 31.07.2013 NA
Sri J. Srinivas Reddy Director/Operations 26.11.2014 NA
Sri G. Parvatham Director/HR & IR 01.09.2018 NA
Sri K. Ramulu Director/(Commercial), DPE, 01.09.2018 NA
Assessment and Energy Audit)
Sri Ch. Madan Mohan Rao Director/P&MM 01.09.2018 NA
Sri S. Swamy Reddy Director/IPC & RAC 01.09.2018 NA
Sri Sandeep Kumar Sultania, Secretary to Government [FAC], 28.08.2020 NA
IAS Energy Dept
Sri Ajay Misra, IAS Director /(Non-Whole Time) 20.12.2016 31.07.2020
Sri C. Srinivasa Rao, IRAS Director /(Non-Whole Time) 04.03.2017 NA
Sri G.S.Ram Mohan Rao Director /(Non-Whole Time) 02.07.2014 NA
Sri V. Anil Kumar Company Secretary 21.07.2015 NA

20. THE FACT OF RESIGNATION OF ANY DIRECTOR – 168(1)

Sri. Ajay Misra, IAS was retired from service on superannuation on dated 31.7.2020 by government of
Telangana vide G.O.Ms.No. 9, Energy (HR-A1) Department, dated 28.08.2020 and Sri Sandeep Kumar
Sultania, IAS was appointed as Non whole Time Director on the Board of TSSPDCL on dated 28.08.2020.

21. APPOINTMENT, QUALIFICATIONS & REMUNERATION & EVOLUTION OF THE

BOARD OF DIRECTORS SECTION 134(3)(E) & SECTION 134(3)(P)
The Ministry of Corporate Affairs (MCA) vide Notification dated 5th June, 2015, has exempted the government
companies from the Policy on appointment and remuneration including criteria for determining qualifications,
positive attributes, independence of a directors etc.,

22. DETAILS OF THE SIGNIFICANT & MATERIAL ORDERS PASSED BY THE

REGULATORS/ COURTS/ TRIBUNALS AND LITIGATION SUMMARY
Statement showing the service wise details of court cases amount pending as on dated 31.03.2021.

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(Rs. in Crore)
S.No. Circle LT HT TOTAL
No. of Amount No. of Amount No. of Amount
Services Services Services
1 BANJARA HILLS 17 -0.06 80 57.67 97 57.60
2 CYBERCITY 0 0 74 21.14 74 21.14
3 GADWAL 0 0 4 0.01 4 0.01
4 HABSIGUDA 36 0.34 125 9.40 161 9.74
5 HYDERABAD CENTRAL 29 0.17 66 22.10 95 22.28
6 HYDERABAD SOUTH 55 0.26 26 2.80 81 3.06
7 MAHABOOBNAGAR 0 0 67 32.37 67 32.37
8 MEDAK 0 0 41 46.83 41 46.83
9 MEDCHAL 22 0.02 177 64.26 199 64.28
10 NAGARKURNOOL 0 0 8 2.92 8 2.92
11 NALGONDA 73 0.49 168 75.31 241 75.80
12 RAJENDRA NAGAR 374 3.99 218 131.23 592 135.22
13 SANGAREDDY 0 0 218 137.89 218 137.89
14 SAROORNAGAR 69 0.07 28 8.32 97 8.40
15 SECUNDERABAD 37 -0.01 75 12.41 112 12.40
16 SIDDIPET 0 0 19 14.63 19 14.63
17 SURYAPET 15 0.02 108 54.55 123 54.57
18 VIKARABAD 0 0 10 85.64 10 85.64
19 WANAPARTHY 0 0 5 0.02 5 0.02
20 YADADRI 15 0.07 69 25.77 84 25.84
Total 742 5.37 1586 805.27 2328 810.64

23. DISCLOSURE OF THE COMPOSITION OF AUDIT COMMITTEE AND WHERE THE

BOARD HAS NOT ACCEPTED ANY RECOMMENDATION OF THE AUDIT COMMITTEE,
THE REASONS FOR NOT ACCEPTING SUCH RECOMMENDATIONS – 177(8)
Present Audit Committee composition is as follows:

SL. No Name Designation

1 Sri Sandeep Kumar Sultania, IAS Secretary to Government [FAC], Energy Dept
2 Sri C. Srinivasa Rao, IRAS JMD/TSTRANSCO
3 Sri G.S.Ram Mohan Rao Additional Secretary to Govt., Finance Dept.
4 Sri P. Narasimha Rao, IRS Director/Finance/TSSPDCL
The reconstitution of Audit committee was approved by the board in its 162nd Board Meeting held on
03.11.2020.
The board has considered and accepted all the recommendations of the Audit Committee and there are no
recommendations which were not accepted during the F.Y.2020-21.

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24. PARTICULARS OF THE EMPLOYEES & EMPLOYEE WELFARE

1. Manpower: The manpower (officers and staff) stood at 20,056 for the F.Y.2020-21 when compared
to the 19,125 for the F.Y.2019-20.
The category wise employee’s filled is indicated below:
Sl. No Name of the Category F.Y. 2020-21 F.Y. 2019-20
1 Engineering service 2328 2,280
2 Accounts and P&G service 1,709 1,729
3 O&M and construction service 6,484 5,007
4 Others (including deputations) 85 77
5 Artisans 9,450 10,032
Total 20,056 19,125

2. Training to Employees: During F.Y.2020-21 training has been imparted to 4,482 employees on new
technologies in Power sector, IT initiative, HR activities.
3. Employees welfare: Total 114 (57 are Regular Employees + 57 are Artisans) dependents of deceased
employees have been provided employment in the company under compassionate grounds.
Artisans were regularised with effect from 18.09.2019 and Benefits of Pay Revision (PRC),Annual Grade
Increments(AGI) with all other allowances, Leaves, TA,DA and medical facilities were extended to them.

25. DETAILS OF ESTABLISHMENT OF VIGIL MECHANISM – 177(9) & (10)

Board approved the Vigil Mechanism Policy -2015 pursuant to Section 177 (9) of the Companies Act, 2013
and Rule 7 of the Companies (Meetings of the Board and its Powers) Rules, 2014 at its board meeting held
on 06th August, 2015 for directors and employees to report to the management instances of irregularity,
unethical practices and /or misconduct in line with the above policy. The details of such policy were
communicated to all offices apart from disclosing in the Company’s website www.tssouthernpower.com.
Vigil Mechanism was constituted Vide: S.O.O. (CS) Ms.No.638, dated 18.08.2015 with the following
members to provide the adequate safeguards against the victimization of employees and directors.

SL. No Name Designation

1 Sri Sandeep Kumar Sultania, IAS Secretary to Government [FAC], Energy Dept
2 Sri C. Srinivasa Rao, IRAS JMD/TSTRANSCO
3 Sri G.S.Ram Mohan Rao Additional Secretary to Govt., Finance Dept.
4 Sri P. Narasimha Rao, IRS Director/Finance/TSSPDCL
The reconstitution of Vigil Mechanism committee was approved by the board in its 162nd Board Meeting
held on 03.11.2020.
26. DISCLOSURE AS PER THE SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
A Complaints Committee was constituted with the members indicated therein to prevent or deter the
commission of acts of Sexual harassment on women employees in APCPDCL (Now TSSPDCL) for holding
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the office for a period of one year. Consequently, on completion of one year period, the committee was re-
constituted vide reference SP.O.O.CGM (HRD) Rt.No.365, dated 17.04.2019 with the members as indicated
therein to hold office. Further, complaints committee was re-constituted Vide: SP.O.O.CGM (HRD)
Rt.No.561, dated 21.08.2020 shall hold office till 31.12.2020.
The following officers were nominated for the Complaints Committee:

SI. No Name Designation

1. Smt. K. Sudha Madhuri, Chief General Manager/Revenue/ TSSPDCL Chairperson
2. Smt. G. Satyamma, DE/O/Habsiguda Member
3. Sri P Srinath Reddy, DE/O/ Medchal Member
4. Sri K. Satish Kumar, DE/RAC&IPC Member
5. Smt. C. Rama Sree, DE/Planning/HVDS Member
6. Kum. P.A. Jyothirmayi, DE/IT Wing/Corp. Office Member

27. INTERNAL AUDIT

The Board approved the following firms as Internal Auditors for the F.Y.2020-21 at the Board Meeting held
on 30.03.2021.
S.No Circles/set Charted Accountant L1 Per Vide SP.O.O Tenure
of Circles Firm Month Order No.
1 Medak, Sangareddy M/s. Nagabhirava & 42,500/- SP. O.O. (CGM-HRD) 2years
& Siddipet Associates. Rt. No. 361,
Chartered Accountants dated 04.05.2021
2 Nalgonda, Suryapet M/s. Y. Tirupathaiah 42,500/- SP. O.O. (CGM-HRD) 2years
& Yadadri & Co., Rt. No. 360,
Chartered Accountants dated 04.05.2021
3 Mahabubnagar, M/s. SEV & Associates, 42,500/- SP. O.O. (CGM-HRD) 2years
Nagarkurnool Chartered Accountants Rt. No. 359,
Wanaparthy & Gadwal dated 04.05.2021
4 Rangareddy- I (Cybercity, M/s. Komandoor & Co. 35,000/- SP. O.O. (CGM-HRD) 2years
Vikarabad & LLP, Chartered Rt. No. 409,
Rajendranagar) Accountants dated 28.05.2021
5 Rangareddy –II I. M/s. Komandoor & Co. 32,000/- SP. O.O. (CGM-HRD) 2years
(Habsiguda, Medchal LLP, Chartered Accountants Rt. No. 761,
& Saroornagar) II. M/s. PSSB & Associates dated 25.08.2021
& Co., Chartered Accountants
III. M/s. SEV & Associates,
Chartered Accountants
6 Banjarahills, M/s. C Ramachandram 35,000/- SP. O.O. (CGM-HRD) 2years
Secunderabad & & Co., Chartered Rt. No. 357,
Hyderabad South Accountants dated 04.05.2021

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7 Hyderabad Central, M/s. PSSB & Associates 30,000/- SP. O.O. (CGM-HRD) 2years
SCADA, Master Plan, & Co., Chartered Rt. No. 356,
Corporate Office, Metro Accountants dated 04.05.2021
Zone, RR Zone, Rural
Zone & Medchal Zone.

28. Legal Entity Identifier (LEI)

As per the Reserve Bank of India guidelines, TSSPDCL has obtained Legal Entity Identifier(LEI) application
with number 19057 for issuance of new LEI Number has been processed and that the legal entity has been
issued an LEI number: 335800B6M6WMCGW6UV29.

29. STATUTORY AUDITORS

Statutory Auditor
M/s. Ramanatham & Rao (HY0142), Chartered Accountants, were appointed by the Comptroller and Auditor
General of India (CAG) as Statutory Auditors of the Company for the F.Y.2020 -21.
Secretarial Auditor:
M/s. KCC & Associates, Company Secretaries was appointed as Secretarial Auditors of the Company for
the F.Y.2020-21.
Cost Auditor:
M/s. B.V.S. & Co, Cost Accountants was appointed as Cost Auditors of the Company for the F.Y.2020-21.

30. ACKNOWLEDGEMENTS
We thank and acknowledge the invaluable support and co-operation of the Chairman & Managing Director,
TS TRANSCO and Chairman & Managing Directors of TS GENCO, TS NPDCL, AP TRANSCO,
APGENCO & AP DISCOMS.
We take this opportunity to thank the Secretary, Energy Department, Government of Telangana, The Secretary,
TSERC and other officials of the Govt. of Telangana, Auditors of the company & the Office of the Comptroller
& Auditor General of India, the Bankers and Financial Institutions & all the Stakeholders and look forward
to their continued support in the future.
We also wish to congratulate all the employees and staff of TSSPDCL, for their invaluable services.

For and on behalf of the Board of Directors

Southern Power Distribution Company Of Telangana Limited
CIN - U40109TG2000SGC034116

Sd/- Sd/-
Place : Hyderabad Sri P Narasimha Rao Sri G. Raghuma Reddy
Date : 06.09.2021 Director Finance/CFO Chairman and Managing Director
DIN: 08242557 DIN: 02943771

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ANNEXURE A
Form No. MGT-9
EXTRACT OF ANNUAL RETURN as on the financial year ended on 31.03.2021
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies
(Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i) CIN: U40109TG2000SGC034116
Registration Date [DDMMYYYY] 30.03.2000
ii) Category of the Company [Pl. tick] A Government of Telangana Undertaking
(State Govt. Company) Unlisted Public Company
Whether shares listed on recognized No
Stock
vi) NAME AND REGISTERED OFFICE ADDRESS OF COMPANY:
Company Name Southern Power Distribution Company of
Telangana Limited.
Address Corporate office, # 6-1-50, Mint Compound,
Lakdikapool
Town / City Hyderabad
State Telangana State
Pin Code: 500063
Country Name : India
Country Code +91
Telephone (With STD Area Code Number) 040-23431011
Fax Number : NA
Email Address [email protected]
Website www.tssouthernpower.com
Name of the Police Station having
jurisdiction where the registered office Saifabad Police Station
is situated

I. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

(All the business activities contributing 10 % or more of the total turnover of the company shall be stated)

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S.No Name and Description of NIC Code of the % to total turnover

main products / services Product/service of the company
Distribution and Retail supply of 35109 / Collection and
Electricity in the licensed area of the distribution of electric
1
company i.e, Hyderabad, Mahabubnagar, energy to households, 100%
Nalgonda, Yadadri Bhuvanagiri, Suryapet, industrial, commercial
Siddipet, Medchal, Wanaparthy, and other users n.e.c
Nagarkurnool, Jogulamba Gadwal,
Narayanpet, Sangareddy, Medak,
Vikarabad and Rangareddy

II. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

S.No Name And Address Of CIN/GLN Holding Company/
The Company Subsidiary /Associate
1 Andhra Pradesh Power Development
Company Limited. Registered
U40105TG2006SGC049354 Associate
Address: Vidyut Soudha, Khairatabad,
Hyderabad. TG-500082. INDIA.

III. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i) Category-wise Share Holding
Category of No. of Shares held at the beginning No. of Shares held at the end % Change
Shareholders of the year [As on 1-April-2020] of the year[As on 31-March-2021] during
the year
% of % of
Demat Physical Total Total Demat Physical Total Total
A. Promoter s
(1) Indian
a) Individual/ HUF 0 0 0 0 0 0 0 0 0
c) State Govt(s) 0 12,01,79,30,297 1,20,17,93,02,970 99.99 0 12,01,79,30,297 1,20,17,93,02,970 99.99 NIL
d) Bodies Corp. 0 0 0 0 0 0 0 0 0
e) Banks / FI 0 0 0 0 0 0 0 0 0
f) Any other 0 9 90 0.01 0 9 90 0.01 0
Total shareholding of 0 12,01,79,30,306 1,20,17,93,03,060 99.99 0 12,01,79,30,306 1,20,17,93,03,060 99.99 NIL
Promoter (A)
B. Public Shareholding 0 0 0 0 0 0 0 0 0
C. Shares held by Custodian 0 0 0 0 0 0 0 0 0
for GDRs & ADRs
Grand Total (A+B+C) 0 12,01,79,30,306 1,20,17,93,03,060 100 0 12,01,79,30,306 1,20,17,93,03,060 100 NIL

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B) Shareholding of Promoter -
Shareholding at the beginning of the year Shareholding at the end of the year % change
% of total % of Shares % of total % of Shares in share
No. of Shares of Pledged No. of Shares of Pledged holding
S.No. Shareholder’s Name
Shares the / encumbered Shares the /encumbered during the
company to total shares company to total shares year
1 Governor of 12,01,79,30,297 100 0 12,01,79,30,297 100 0 100
Telangana
Total 12,01,79,30,297 100 0 12,01,79,30,297 100 0 100
The Government of Telangana issued orders for the allotment vide G.O.Ms. No. 20, Energy (Budget-A1)
Department, dated 17.12.2020.

C) Change in Promoters’ Shareholding (please specify, if there is no change)

Shareholding at the beginning of the year Shareholding at the end of the year
% change
(01.04.2020 (31.03.2021)
in share
% of total % of Shares % of total % of Shares
S.No. Shareholder’s Name holding
No. of Shares of Pledged No. of Shares of Pledged
during the
Shares the / encumbered Shares the /encumbered
year
company to total shares company to total shares
1. Sri Ajay Misra, IAS
Spl. Chief Secretary to 2 0 0 0 0 0 0
Energy Dept, Govt of Telangana
2. Sri Sandeep Kumar Sultania,
IAS, Secretary to Government 0 0 0 2 0 0 0
[FAC], Energy Dept.,
3. Sri D. Prabhakara Rao,
Chairman and Managing 1 0 0 1 0 0 0
Director/TSTRANSCO
4. Sri C. Srinivasa Rao, IRAS 1 0 0 1 0 0 0
JMD/TSTRANSCO
5. Sri G. Raghuma Reddy
Chairman and Managing 2 0 0 2 0 0 0
Director /TSSPDCL
6. Sri J. Srinivasa Reddy,
Director /Operations / 1 0 0 1 0 0 0
TSSPDCL
7. Sri T. Srinivas Director 1 0 0 1 0 0 0
(Projects & IT ) /TSSPDCL
8. Sri P. Narasimha Rao
Director/Finance/ TSSPDCL 1 0 0 1 0 0 0

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9. Assistant Secretary to
Govt., Energy Department,
Government of Telangana, 12,01,79,30,297 0 0 12,01,79,30,297 0 0 0
Representative on behalf
of Governor of Telangana)
Total 12,01,79,30,306 100% 0 12,01,79,30,306 100% 0 0

D) Shareholding Pattern of top ten Shareholders: 31.03.2021

(Other than Directors, Promoters and Holders of GDRs and ADRs):
S. No Share Holders Name Shareholding at the Cumulative Shareholding
beginning of the year during the year
No. of % of total shares No. of % of total shares
shares of the company shares of the company
For Each of the Directors
1. Assistant Secretary to Govt., Energy
Department, Government of Telangana,
Representative on behalf of Governor
of Telangana)
A At the beginning of the year 12,01,79,30,297 99.99% 12,01,79,30,297 99.99%
B Date wise Increase / Decrease in
Promoters Shareholding during the
year specifying the reasons for 0 0 0
increase / decrease (e.g. allotment /
transfer / bonus/ sweat equity etc):
C At the end of the year 12,01,79,30,297 99.99% 12,01,79,30,297 99.99%

E) Shareholding of Directors and Key Managerial Personnel: 31.03.2021

S. No Share Holders Name Shareholding at the Cumulative Shareholding
beginning of the year during the year
No. of % of total No. of % of total
shares shares of shares shares of
the company the company
1. Sri G. Raghuma Reddy,
Chairman & Managing Director
TSSPDCL
A At the beginning of the year 2 0 2 0
Date wise Increase / Decrease in
Promoters Shareholding during the year
B specifying the reasons for increase / 0 0 0 0
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):

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C At the end of the year 2 0 2 0

2. Sri T. Srinivas
Director / Projects & IT / TSSPDCL
A At the beginning of the year 1 0 1 0
Date wise Increase / Decrease in
Promoters Shareholding during the year
B specifying the reasons for increase / 0 0 0 0
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
C At the end of the year 1 0 1 0
3. Sri J. Srinivasa Reddy,
Director / Operations / TSSPDCL
A At the beginning of the year 1 0 1 0
Date wise Increase / Decrease in
Promoters Shareholding during the year
B specifying the reasons for increase / 0 0 0 0
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
C At the end of the year 1 0 1 0
4. Sri P. Narasimha Rao,
Director / Finance / TSSPDCL
A At the beginning of the year 1 0 1 0
Date wise Increase / Decrease in
Promoters Shareholding during the year
B specifying the reasons for increase / 0 0 0 0
decrease (e.g. allotment / transfer /
bonus/ sweat equity etc):
C At the end of the year 1 0 1 0

F) INDEBTEDNESS - Indebtedness of the Company including interest outstanding/accrued but

not due for payment:
Particulars Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the
financial year
i) Principal Amount 1,12,37,89,98,419 29,29,59,12,704 - 1,41,67,49,11,123
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - - - -
Total (i+ ii+ iii) 1,12,37,89,98,419 29,29,59,12,704 - 1,41,67,49,11,123

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Particulars Secured Loans Unsecured Deposits Total

excluding deposits Loans Indebtedness
Change in Indebtedness during the financial year
* Addition 90,03,72,49,763 3,04,82,97,820 - 93,08,55,47,583
* Reduction 30,19,31,44,581 5,25,47,78,246 - 35,44,79,22,827
Net Change 59,84,41,05,182 (2,20,64,80,426) - 57,63,76,24,756
Indebtedness at the end of the financial year
i) Principal Amount 1,72,22,31,03,601 27,08,94,32,278 - 19,93,12,53,5879
ii) Interest due but not paid - - - -
iii)Interest accrued but not due - - - -
Total (i+ ii+ iii) 1,72,22,31,03,601 27,08,94,32,278 - 1,99,31,25,35,879

Note: Includes the balances of Anantapur and Kurnool

IV. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and Manager:

S. Particulars of G. Raghuma T. Srinivas J. Srinivas G. Parvatham K. Ramulu Swamy Reddy Ch. Madan P. Narasimha
No Remuneration Reddy (CMD) (D/P) Reddy, D(O) (Dir/HR&IR) (Dir/Comm.) Singireddy(Dir/ Mohan Rao Rao, Dir/Fin
IPC & RAC) Dir/(P&MM)
1 Gross salary
(a) Salary as per
provisions
contained in
section 17(1)
of the Income-tax
Act,1961 (b) Value 38,54,800 35,24,639 33,55,540 24,06,000 54,18,307.91 23,10,000 24,39,000 26,24,222.45
of perquisites u/s
17(2)Income-tax
Act, 1961 (c)
Profits in lieu of
salary under section
17(3) Income–tax
Act, 1961
2. Stock Option NA NA NA NA NA NA NA NA
3. Sweat Equity NA NA NA NA NA NA NA NA
4. Commission - as NA NA NA NA NA NA NA NA
% of profit -
others, specify…

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5. Others, please
specify (Total
deductions 16,82,192 13,59,393 13,20,173 9,58,673 18,80,326 8,63,464 10,87,543 10,59,983
Professional Tax
& Income Tax)
Total(A) 21,72,608 21,65,246 20,35,367 14,47,327 35,37,982 14,46,536 13,51,457 15,64,240
Ceiling as per The Ministry of Corporate Affairs (MCA) vide notification dated 5th June, 2015, has exempted the
the Act Government Companies from ceiling on remuneration under Section 197 of the Companies Act, 2013.

B. Remuneration to other Directors (Non Whole Time Directors)

Name of the Director Name of the Director Name of the Director
Sri Sandeep Kumar Sultania, Sri G.S.Ram Mohan Rao, Sri C. Srinivasa Rao,
Particulars of IAS, Secretary to Govt., Additional Secretary to IRAS, JMD/
S.No.
Remuneration Energy Dept., Director Govt., Finance Dept, TSTRANSCO/
(Non-Whole Time)/ Director (Non-Whole (Non-whole time)
TSSPDCL of Telangana Time)/ TSSPDCL /TSSPDCL
2. Non whole time Directors
- Fee for attending board
and committee meetings NA NA NA
- Commission
- Others, please specify
Amount 20,000/- 35,000/- 35,000/-
Overall Ceiling as per the Act The Ministry of Corporate Affairs(MCA) vide notification dated
5th June, 2015, has exempted the Government Companies from ceiling
on remuneration under Section 197 of the Companies Act, 2013.

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C. Remuneration To Key Managerial Personnel Other Than MD/Manager/WTD

S.No. Particulars of Remuneration Key Managerial Personnel

CEO Company Secretary CFO Total
1. Gross salary
(a) Salary as per provisions contained in
section17(1)of the Income-tax Act,1961
(b) Value of perquisites u/s 17(2) Income-tax NA 17,62,867 NA NA
Act, 1961
(c)Profits in lieu of salary
under section 17(3) Income-tax Act,1961
2. Stock Option NA NA NA NA
3. Sweat Equity NA NA NA NA
4. Commission-as % of profit-others, specify NA NA NA NA
5. Others, please specify (deductions Provident
Fund & Professional tax) NA 3,08,897 NA NA
Total 14,53,970

VI. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES:

Details of Authority Appeal made,

Type Section of the Brief Penalty / Punishment [RD / NCLT/ if any (give
Companies Act Description / Compounding fees COURT] Details)
imposed
A. COMPANY
Penalty NA NA NA NA NA
Punishment NA NA NA NA NA
Compounding NA NA NA NA NA
B. DIRECTORS
Penalty NA NA NA NA NA
Punishment NA NA NA NA NA
Compounding NA NA NA NA NA
C. OTHER OFFICERS IN DEFAULT
Penalty NA NA NA NA NA
Punishment NA NA NA NA NA
Compounding NA NA NA NA NA

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INDEPENDENT
AUDITOR’S REPORT
AND COMPANY
REPLIES

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INDEPENDENT AUDITOR’S QUALIFICATIONS / REMARKS

AND REPLIES OF THE TSSPDCL FOR F.Y. 2020-21
To
The Members of
Southern Power Distribution Company of Telangana Limited,
Hyderabad.

Report on the Audit of Financial Statements:

We have audited the accompanying financial statements of Southern Power Distribution Company of Telangana
Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh Limited)(“the
company”), Hyderabad, which comprise the Balance Sheet as at March 31, 2021 and the Statement of Profit
and Loss and the Cash Flow Statement for the year then ended, and a summary of the significant accounting
policies and other explanatory information (hereinafter referred to as “the financial statements”).
In our opinion and to the best of our information and according to the explanations given to us, except for
the possible effect of the matters described in the Basis for Qualified Opinion paragraphs, the aforesaid
financial statements given the information required by the Companies Act, 2013 (“the Act”) in the manner
so required and give a true and fair view in conformity with the Accounting Standards prescribed under
section 133 of the Act read with the Companies (Accounts) Rules, 2014, of the state of affairs of the Company
as at 31st March, 2021, its losses and its cash flows for the year ended on that date.

Basis for Qualified Opinion:

STATUTORY AUDITOR’S REPORT COMPANY’S REPLY
1. We are informed that the Company is governed by the Electricity Act, 2003 and accordingly the
provisions of the said Act would prevail, wherever the same are inconsistent with the provisions of
the Companies Act, 2013 in terms of section 174 of the Electricity Act. Accordingly, in terms of
section 185(2)(d) of the Electricity Act, the Annual accounts of the Company have been prepared as
per the rules prescribed under “Electricity (Supply) (Annual Accounts) Rules 1985. Accordingly, the
Company has not complied with some of the mandatory Accounting Standards, as specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the requirements
of Schedule – III to the companies Act, 2013, details of which are given here under:
a) Capitalization of administrative overheads Ten percent of the cost of capital works is
(including staff cost) at 10% of the direct cost of capitalized towards Employees Cost and
the assets capitalized during the year as per the Administrative & General Expenses, as the
company’s Accounting Policy No.1.5(c), operation circles are executing both capital
amounting to Rs.82,14,79,357/-, is not in works and operation & maintenance works,
accordance with Accounting Standard-10: and it is not practicable to maintain records
“Property Plant and Equipment”, as the same is to identify the man hours spent by the staff
not attributable as expenditure incurred directly on capital works.
to bring the said assets to working condition.

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b) As stated in Accounting Policy No.1.8, The construction of assets take places on a large
recognition of the contributions received from scale on a continuation basis with the different
consumers and specific grants from the State/ sources of finance ( ie.) Borrowings, Government
Central Governments or their agencies for Grants and Internal sources. Hence creation of
creation of tangible assets as “Reserves” on tangible assets on receipts basis and providing of
receipt basis, even before the creation of the said deprecation on the proportionate value basis with
assets and adjustment of the same against reference to Consumer Contribution, Government
depreciation on the proportionate value of the grants, Loans and internal sources is not feasible.
assets built out of the said contributions and
grants, instead of the specific assets created with
the said contributions/grants, which is contrary
to Accounting Standard 12 “Accounting for
Government Grants”.

c) Non-recognition of the “parcels of land” The Land and parcels available at various field units
received at free of cost from State Government has been received, however some of the land and
and its agencies in the books of account, as parcels of land are yet to be received. The records
required by Accounting Standard 12 pertaining to these are being maintained at
“Accounting for Government Grants”. respective division and circle level.

2. Consequent to the creation of the State of The Expert committee appointed by the
Telangana, in accordance with the Andhra Government of India has finalized the bifurcation
Pradesh Reorganization Act, 2014, the of Assets and Liabilities between the APSPDCL
Ananthapur and Kurnool operating business and TSSPDCL and approved the same on
circles of the company have been reassigned to 15.03.2018 duly signed by the CMD of the both
APSPDCL with effect from 2nd June, 2014 in the DISCOMs, the Chairperson and Members of
accordance with G.O.Ms.No.24 dated 29th May the Expert Committee. The bifurcation of Assets
2014 issued by State of Andhra Pradesh. The and Liabilities was independently audited and
company has recognized the transfer of assets certified by M/s. Sharad & Associates. Post
and liabilities in the financial year 2015-16 of bifurcation issues are still pending between Andhra
these two Circles in its books of account, as per Pradesh and Telangana and moreover as on today
the “Basis of Apportionment” mentioned in the employees bifurcation is under subjudice.
said G.O. which is approved by the Expert
Committee constituted by the Government of
India, which is computed under the “pooling of
interest” method. The company instead of
recognizing the share of the said two Circles in
the “Share Capital” of Rs.325,27,89,980/- as a
reduction in the share capital, recognized
Rs.723,00,74,154/- as “Capital Reserve”
resulting in understatement of its negative net-
worth by Rs.1,048,28,64,134/- and
consequential overstatement of “Receivables.”

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3) The Company has not recognized the revenue It is to submit that as per the UDAY Scheme, the
receivable under UDAY scheme (As per Telangana State Government shall take over the
Tripartite Memorandum of Understanding) as future losses of the DISCOMs in a graded manner
detailed below: from 2017-18. Accordingly Govt. of Telangana has
issued the G.O. No. 17 dated16.11.2017 for the
Financial Year Rupees in Crore Revenue Grant under UDAY Scheme and the same
2018-19 392.48 has taken as Revenue from Operations of Rs.235.00
crore for the year 2017-18 towards 5% of previous
2019-20 1241.81 year loss (i.e. Rs.4700.22 Crore * 5%). Further The
2020-21 2470.13 Govt. of TS has issued GO.No.57 dated 24.08.2018
and 87 dated 20.12.2018 for Rs.392.48 crore
Total 4104.42
towards 10% of previous year loss (i.e. Rs. 3924.78
crore * 10%), under “Investments in Discoms”
instead of Revenue Grant. In the year 2018-19 the
same was recognized and recorded as if Grant from
This has resulted in understatement of Revenue
the Government of Telangana. For the year
from Operations and Other Current Assets –
2019-20 the Govt. of TS has issued G.O. No.13
Receivable for government by Rs.4,104.42 Crore.
dated 08.08.2019 for 25% of previous year loss (i.e.
Rs.4967.27 crore * 25%) duly mentioning the same
as “Investment in Discoms”. For the year 2020-21
the Govt. of TS has issued G.O. No.15
dated16.11.2020 for 50% of previous year loss
Rs.2470.13 crore (i.e. Rs.4940.25 * 50%) duly
mentioning the same as “Investment in Discoms”.
As the G.Os for the years from 2018-19 to 2020-21
were issued towards “Investment in Discoms” and
pending receipt of the said funds, the same may not
be treated as Grant. Since the pending receipt of
funds, the same has not been accounted for the year
2018-19 to 2020-21, to present a true and fair view
of books of accounts. The same has been disclosed
in Note.No.21 of the Financials of 2020-21.

4) The Company has made provision for Pension The Company is making the Provision for Pension
& Gratuity in respect of employees who were & Gratuity in respect of employees who were on
on rolls on 31.01.1999 and retired thereafter to rolls as on 31.01.1999 and retired thereafter in the
the extent of 26% only of the total amount as ratio of 26 % and providing the balance 74% is the
arrived as per actuarial valuation. This has responsibility of the TSGENCO Master Trust.
resulted in understatement of Provision for Accordingly, the TSSPDCL is making the payment
employee liabilities and understatement of Loss of 74 % Pension & Gratuity and claiming the
for the year to the extent of Rs. 7,967.35 crore. reimbursement of same on monthly basis from the
TSGENCO Master Trust and the TSGENCO
Master Trust is reimbursing the same and as such

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the Provision of maintaining 74 % of Pension &

Liability is not required to be provided in the books
of accounts of TSSPDCL as this is happening from
the very inception of formation of the Companies
and the Unit Trusts across all the Companies in the
United State of Andhra Pradesh.

5) Amount of Rs.959,54,56,027/- towards The Discom has taken up the issue with SCCL
surcharge on late payment payable to Singareni through TSPCC to waive the late payment
Thermal Power Plant (STPP) upto 31st March, surcharge in order to avoid the burden on the
2020 is neither paid nor provided in the books consumer as the same is not covered in ARR Tariff
of account resulting in understatement of Order. However the SCCL has not raised any
Finance Cost/loss for the year and Trade surcharge during the year ie, 2020-21.
Payables to the same extent.
Late payment surcharge payable to STPP for
the current financial year 2020-21 is not
provided and the impact could not be quantified.

6) The Company has applied depreciation rates It is to submit that, in the Significant Accounting
notified by the Ministry of Power (MoP) vide Policies of the Company which are form part of the
S.O.266 (E) dated 29th March, 1994 in respect Financials for the respective years, at Note No.1.6,
of the Tangible Assets instead of adopting the it is mentioned that the depreciation on Plant and
depreciation rates notified by CERC vide its Equipment is provided under the “Straight Line
notification No.L-1/236/2018/CERC dated Method” up to 90% of the Original Cost of Assets,
7th March, 2019 as required by Schedule II Part at the rates notified by the Ministry of Power (MoP)
B, Para 4 of the Company Act, 2013. This has Government of Indian vide Notification No.
resulted in overstatement of depreciation and S.O.266 (E) dated 29th March, 1994. Accordingly,
amortization expenses and understatement of the said accounting policy is being followed
Tangible Assets as at 31st March, 2021 by consistently for all the years.
Rs.374.06 crore. Consequently, loss for the year
is also overstated by same amount. Further it is to submit that, the Company has filed
the MYT for the 4th Control period for F.Y. from
2019-20 to F.Y.2023-24 with the Hon’ble
Telangana State Electricity Regulatory Commission
as the TSERC is the concerned business regulatory
and in the MYT filings that the method of
computation of Depreciation and the rates of
Depreciations followed as per the MoP are
mentioned. However the Hon’ble TSERC has
considered the depreciation rates as per the Hon’ble
Central Electricity Regulatory Commission
(CERC) Rates and issued the Tariff Order dated
29th April, 2020 for 4th Control period.

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Further it is to submit that, since the major portion

of the Assets consists of Plant and Machinery,
Meters, Battery Charges and Furniture & Fittings,
the rate of Depreciation Notified by CERC for these
classes of Assets are having the less Depreciation
rates, in which it takes more than 15 years to
depreciate 90% of original cost of the Asset. But in
general, the Electronic or Digital Meters and Battery
Charges etc., are having the less life of Assets (3 to
8 years approximately).
Further, in the CERC Notification of guidelines,
there are no specific rate of depreciation for
Distribution Licensees, only common rates were
issued for Assets of Generating Stations and
Transmission Units.
Under the above circumstances, it is to submit that
the deprecation rates applied for the financial year
2020-21 are appears to be appropriate and correct.
Hence there is no overstatement of Depreciation
and Amortization expenses (Note No.11) by
Rs. 374.06 crore. However, a view will be taken
for the next financial years in regard to
implementation of CERC Rates.

7) During the Financial Year 2018-19 the It is to submit that out of forfeited Bank Guarantee
company has forfeited Bank Guarantees of of Rs. 52.13 Crore, the share of Ananthapur and
Rs. 52.13 crore and recoginsed the same as Kurnool circles is Rs. 9.10 Crore which is to be
income for that Year. Of which Rs.9.13 crore payable to APSPDCL as the said two circles are
pertains to Kurnool and Anthapur districts under merged with APSPDCL consequent on Bifurcation
Andhra Pradesh Southern Power Distribution of State from 02.06.2014 and to this effect a letter
Company Limited (APSPDCL). This has dated 7th June, 2019 has received from APSPDCL
resulted in Understatement of Provisions and requesting to transfer the said amount.
overstatement of Reserves & Surplus by Rs.9.1
Further, it is to submit that, as the subject matter
crore for the Year ended 31st March, 2021
falls within the bifurcation issue and Apportionment
of Assets and Liabilities in respect of Ananthapur
and Kurnool circles is not yet finalized, this element
will be considered while arriving the net settlement
of Assets and Liabilities.

8) We report that the following accounts have not been reconciled as at 31st March, 2021 and accordingly
we are unable to express an opinion on the effect of said un-reconciled amounts on the financials of
the company for the year:

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a) Inter units accounts with a credit balance of The Company is making all out efforts in clearing
Rs.8,85,11,972/-. the balance in this account. During the year the
company has reconciled to certain extent duly
brought down the amount to Rs. 8.85 Crore
(Previous year Rs. 14.70 Crore), out of which an
amount o Rs. 2.04 Crore were reconciled and
cleared during the current financial year. However,
there are few legacy transactions involved in
balance. The Company is doing the reconciliation
continuously on priority basis.

b) Amount appearing under loan clearing During the year under review, the balance in this
(CPDCL) account with a debit balance of account has been made Zero. However certain
Rs.3,67,53,367/-. items of previous year still exists efforts will be
made to clear the same.

9) Overall impact of the above Qualifications

which are quantifiable is as follows:
a) Understatement of Current year losses –
Informative only
Rs. 4,457.51 Crore.
b) Understatement of Negative Net worth –
Rs. 5,505.79 Crore.
Emphasis of Matters:
1) Consequent to the amendment brought in vide
G.O.Ms.396 dated 09.06.2005 to the second
transfer scheme notified vide G.O.Ms. 142
dated 29.09.2001, the Company has
incorporated in its books of account as on
01.04.2010, various assets, including fixed
assets and liabilities towards power purchase,
supplies & services received and balances
outstanding in respect of the loans, representing Informative only
term loans, cash credits, working capital loans
received from various banks and financial
institutions, other receivables from the State
Government of AP, of the amounts mentioned
in the two notifications referred to above. We
understand that the above amounts, at which
the various assets and liabilities are recognized
in the books of account as on that date, are
provisional and accordingly are subject to
further adjustments as may be determined by
the State Government.

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2) We draw your attention to Note No. 1.16 (a)

(ii) wherein, the State Government of Andhra
Pradesh amended retrospectively with effect
from 09.06.2005, the share of each DISCOM
in various bulk supply power purchase
agreements vide its notification No.53 Energy
(Power III) dated 28.04.2008. We are informed
Informative only
that the company has made a representation to
give effect to the said revised sharing
prospectively. Pending disposal of the
company’s representation, the contingent
liability/receivables, if any, due to the said
retrospective amendment of the share of the
company in various bulk supply of power
purchase agreements has not been disclosed
in the books of account.
3) We draw your attention to Note No. 27 where
in Exceptional Items includes Prior period
income which pertains to Reversal of Interest
on Loans amounting to Rs.598.29 Crore Informative only
pertaining to Anathapur and Kurnool form
2014-15 to 2019-20 and transferring the same
to Receivables from APSPDCL.

4) Current accounts maintained with various All efforts are being made continuously for clearing
banks have Board excess, being cheques/cash for pending Board and Bank excess. Further it is to
deposited in banks and not appearing in banks’ stated that, an amount of Rs. 18.79 Crore have been
statements of account for Rs.19,89,34,882/- cleared against Rs. 19.89 Crore of Board excess and
(of which Rs.1,10,15,115/- is outstanding for an amount of Rs. 12.30 Crore have been cleared
more than three months) and Bank excess, against Rs. 31.45 Crore of bank excess during the
representing amounts credited by banks but not current financial year.
appearing in the books of account of the
company of Rs.31,44,54,023/- as on
31.03.2021.
5) Letters of confirmation of balances have not been provided for our verification in respect of the
following, the impact that may result on reconciliation and review of the same cannot be ascertained:

a) Balances due to/from various vendors for Closing balance confirmation from various vendors/
supplies and services, EMDs, SDs, other power supplies towards EMD, SD and other power
distribution companies. distribution companies, is practically equivalent to
impossible as they are very large in no and widely
scattered the balance appearing in SAP may be
treated as final.

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b) Balances due from/to various consumers/ Necessary steps will be taken for the confirmation
customers. from power purchases creditors and consumer/
customers during the next financial year.

Our opinion is not modified in respect of the aforesaid matters.

Material Uncertainty related to Going Concern

We draw attention to Note No. 38 & Note No. 39 in
the financial statements, the events or conditions
mentioned in the said notes indicate that material
Informative only
uncertainties exist that may cast significant doubt on
the Company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.

Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board of
Directors’ Report including Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed, we conclude that there is material misstatement therein; we are
required to report that fact, we have nothing to report in this regard.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the financial
position, financial performance, changes in equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the Accounting Standards specified in Section
133 of the Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and
application of appropriate accounting policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to
the preparation and presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.

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In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless management either intends to liquidate the Company or to
cease operations, or has no realistic alternative but to do so. The Board of Directors is responsible for
overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Responsible assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with SA’s will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are
also responsible for expressing our opinion on whether the Company has adequate internal financial
controls system in place and the operating effectiveness of such controls.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
 Conclude on the appropriateness of Management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures and whether the financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial
statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning
the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of
any identified misstatements in the financial statements.

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We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements:

1) As required by the Companies (Auditor’s
Report) Order, 2016 (“the Order”) issued by
the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we Informative only
give in the Annexure A, a statement on the
matters specified in paragraphs 3 and 4 of the
Order, to the extent applicable.
2) As required by Section 143(5) of the Act, we
have considered the directions / sub-directions
issued by the Comptroller and Auditor General Informative only
of India, the action taken thereon and its impact
on the financial statements of the Company are
given in the Annexure B.

3) As required by Section 143 (3) of the Act, we report that:

a) We have sought and obtained all the information
and explanations which to the best of knowledge Informative only
and belief were necessary for the purpose of our
audit.
b) In our opinion, proper books of account as
required by law have been kept by the
Informative only
Company so far as it appears from our
examination of those books.
c) The Balance Sheet, the Statement of Profit and
Loss and Cash Flow statement dealt with by
Informative only
this Report are in agreement with the books
of account.
d) Except for the matters described in the Basis for
Qualified Opinion Paragraphs, in our opinion,
the aforesaid financial statements comply with
Noted
the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.

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e) The matters described in the Basis for Qualified

Opinion above, in our opinion, may have an Informative only
adverse effect on the functioning of the
Company.
f) Being a Government company, the company
is exempted from the provisions of section 164
(2) of the Act regarding disqualification of Informative only
Directors vide Notification GSR- 463 (E),
dated 5th June, 2015 issued by Government of
India, Ministry of Corporate Affairs.

g) With respect to the adequacy of the internal

financial controls over financial reporting of
the Company and the operating effectiveness Informative only
of such controls, refer to our separate Report
in “Annexure C” to this report.

h) With respect to the other matters to be included

in the Auditor’s Report in accordance with the
requirements of section 197 (16) of the Act,
as amended:
Being a Government company, the company
Informative only
is exempted from the provisions of section 197
(16) of the Act regarding remuneration to
Directors vide Notification GSR- 463 (E),
dated 5th June, 2015 issued by Government of
India, Ministry of Corporate Affairs.
i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information
and according to the explanations given to us:
i) The Company has disclosed the impact of
pending litigations on its financial position in Informative only
its financial statements.
ii) The Company has made provision, as required
under the applicable law or accounting
Informative only
standards for material foreseeable losses, if
any, on long term contracts including
derivative contracts.
iii) There were no amounts which were required
to be transferred to the Investor Education and Informative only
Protection Fund by the Company.

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REPLY TO ANNEXURE A TO THE INDEPENDENT

AUDITOR’S REPORT:
The Annexure A referred to in “Report on Other Legal and Regulatory Requirements” paragraph of our
Independent Auditor’s Report of even date, to the members of Southern Power Distribution Company of
Telangana Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh
Limited) (“the company”), Hyderabad for the year ended 31st March, 2021.

We report that:

i) a) The Company has maintained proper records

showing full particulars, including quantitative Informative only
details and situation of fixed assets.

b) We are informed by the Company that no physical To the extent possible at least for the major
verification of fixed assets has been carried-out assets such as PTR/33Kv lines are proposed
during the year under report. Accordingly, we to be taken up for physical verification.
are unable to comment regarding any material
discrepancies between the fixed assets register
and the assets physically available.

c) We are informed by the company that purchase/ The Land and parcels available at various field
gift/lease deeds are generally executed in respect units have been received, however some of the
of “parcels of land” purchased/gifted/given on records pertaining to lands and parcels of land
long term lease upto 99 years to the company by are yet to be received. The records pertaining
private parties, which are generally kept at to these assets are being maintained at
various field offices of the company and respective division level.
accordingly complete details along with the said
deeds could not be provided to us, except a very
few deeds executed during the year under audit.
We are also informed by the company that in
respect of the “parcels of land” alienated to it by
the Statement Government or its agencies other
than the letters of alienation/allotment/physical
handing over, no other legal documents are
generally executed and that the said letters are
available with various field offices of the
company and accordingly complete details along
with the said letters could not be provided to us,
except a few letters executed. Accordingly, we
are unable to report whether appropriate legal
documents evidencing the title of the company
in respect of all the immovable properties owned
by the company are available with the company.

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ii) Physical verification of inventory has been

conducted during the year by the management
at reasonable intervals. The discrepancies Informative only
noticed on such verification between the
physical stocks and the book records were not
material.

iii) The Company has not granted any loans,

secured or unsecured, to Companies, Firms,
Limited liability partnerships or other parties
covered in the register maintained under Informative only
section 189 of the Companies Act, 2013,
Consequently, clauses 3 (iii) (a), (b) and (c)
of the Order are not applicable.

iv) The company has neither given any loans to

the directors or any other persons in whom the
director is interested nor given/provided any
guarantee/security in connection with any loan Informative only
taken by directors or such other persons as per
the provisions of section 185 of the Companies
Act, 2013.

v) The Company has not accepted any deposits

from public. Consequently, the clause 3(v) of Informative only
the order is not applicable to the Company.

vi) We have broadly reviewed the books of

account relating to materials, labour and other
items of cost maintained by the Company
pursuant to the Rules made by the Central
Government for the maintenance of cost
records under sub-section (1) of section 148
of the Companies Act, 2013 and we are of the Informative only
opinion that prima facie the prescribed
accounts and records have been made and
maintained. However, we have not made a
detailed examination of the records.

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vii) According to the information and explanations

given to us and on the basis of examination of
the records of the Company, amounts deducted/
accrued in the books of account in respect of
undisputed statutory dues including provident
fund, income-tax, sales-tax, service tax, duty
of customs, duty of excise, value added tax, Informative only
cess, Goods & Services Tax and other material
statutory dues have been regularly deposited
during the year by the Company with the
appropriate authorities, except for Goods &
Service Tax and Electricity Duty which is not
paid regularly.

Accordingly to the information and explanations given to us, no undisputed amounts are payable in
respect of Income Tax, Sales Tax, Service Tax, Duty of Customs, Duty of Excise, Value added Tax or
Cess, Goods & Services Tax and other statutory dues which were in arrears as at 31st March, 2021 for a
period of more than six months from the date they became payable, except the following:

Name of the Nature of Dues Period to which the Amount

Statute/Authority amount relates (Rs. In Lakhs)
Central Sales Tax Act, 1956 Central Sales Tax From F.Y. 2012-13 to 0.97
2015-16
Goods and Services Act, Goods & Service Tax F.Y. 2019-20 113.87
2017 F.Y. 2020-21 59.88
Electricity Duty Act/ Electricity Duty F.Y. 2018-19 1344.36
State Government F.Y. 2019-20 17370.67
F.Y. 2020-21 7,770.13

b) As 31 st March, 2021, there have been no

disputed dues, which have not been deposited
with the respective of Income Tax, Service Informative only
Tax, Duty of Customs, Duty of Excise, Value
Added Tax, Goods & Services Tax and Cess
except the following:

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S.No. Name of the Nature of Amount Period to which the Forum where
Statute the Dues (Rs. In Crore) amount relates dispute is pending
A.P. Tax on entry of Entry tax on For the financial year from Hon’ble High Court
1. goods in local area goods purchased 206.72* 2002-03 to 2016-17 of Telangana
Act, 2001 fromoutside state
A.P. General Sales For the financial year from Hon’ble A.P Sales
2. Tax Act, 1956 Sales Tax 1.34 2001-02 to 2004-05 Tax Appellate
Tribunal, Hyderabad
86.48* For the financial year from Hon’ble High
2008-09 to 2012-13 Court of Telangana
3. A.P.VAT Act, 2005 VAT Appellate Deputy
Financial Years Commissioner,
0.44 2008-09 & 2009-10 Commercial Taxes
Hyderabad.
4. Finance Act, 1994 Service Tax 194.53 From July, 2012 Hon’ble High Court
to June, 2017 of Telangana
11.73 From 2012-13 to Customs, Excise and
2015-16 Service Tax Appellate
Tribunal
14.88 Financial Year Hon’ble High Court
5. Income Tax Act, 1961 TDS 2006-07 of Telangana
78.37 For the Financial Years Hon’ble Supreme
2007-08 & 2008-09 Court of India
Central Government
6. EPF Act EPF 0.14 2017-18 Industrial Tribunal,
Hyderabad
14.16 From 2014-15 to Hon’ble High Court
2016-17 of Telangana
* Net of deposits made

viii) According to the information and explanations

given to us, the Company has not defaulted in
repayment of any loan installments in respect Informative only
of term loans from financial institutions and
banks.

ix) In our opinion and according to the information

and explanations given to us, the Term Loans
obtained during the financial year under report Informative only
and in earlier years have been applied for the
purposes for which they were raised.

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x) According to the information and explanations

given to us, no fraud by the company or on the Informative only
Company by its officers or employees has been
noticed or reported during the course of our
audit.

xi) According to the information and explanations

given to us and based on our examination of
the records of the Company, the Company has
paid/provided for managerial remuneration in Informative only
accordance with the requisite approvals
mandated by the provisions of section 197 read
with Schedule V to the Act.

xii) In our opinion, the company is not a Nidhi

Company, Consequently, the clause 3 (xii) of Informative only
the order is not applicable.

xiii) According to the information and explanations

given to us and on overall examination of the
records of the Company, we report that all
transactions with related parties are in
compliance with the provisions of sections 177 Informative only
and 188 of the Companies Act, 2013 and the
related party disclosures as required by relevant
Accounting Standards are disclosed in the
financial statements.

xiv)The Company during the year has not made

preferred allotment of shares. The Company has
not issued fully/partly convertible debentures Informative only
during the year under review. Consequently, the
clause 3 (xiv) of the order is not applicable.

xv) The Company has not entered into any non cash
transactions with the directors or persons
connected with them during the year under Informative only
report. Consequently, the clause 3 (xv) of the
order is not applicable.

xvi) The Company is not required to be registered

under section 45-IA of the Reserve Bank of
Informative only
India Act, 1934. Consequently, the clause 3
(xvi) of the order is not applicable.

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REPLY TO ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

ON THE SPECIFIC INSTRUCTIONS OF C&AG
The Annexure B referred to in “Report on Other Legal and Regulatory Requirements” paragraphs of our
Independent Auditor’s report of even date on the financial statements of members Southern Power
Distribution Company of Telangana Limited (Formerly known as Central Power Distribution
Company of Andhra Pradesh Limited)(“the company”), Hyderabad.
We report that:
Management
S.NO. Questions Replies
Reply
1 Whether the Company Yes, the Company has a system in
has system in place to place to process all the accounting
process all the transactions through SAP IT system.
accounting transactions During Financial Year 2020-21, all
through IT system? If the accounting transactions have been
yes, the implications of processed through IT system.
processing of
accounting transactions However, for preparation of financial
outside IT system on statements some manual interventions
the integrity of the are carried out.
accounts along with the
financial implications, Major discrepancies in certain areas
if any, may be stated. are given hereunder:
1. Payroll system module is not fully Payroll module has been
integrated with finance system operational since 2012. The
module, resulting in a difference of legacy data is yet to be taken
Rs.0.10 Crore excess in finance into payroll module steps will
module, when compared to payroll be taken to reconcile the
module for employee loans. same.

2. Inter units’ balances were not The company is making all out
properly processed through IT efforts in clearing the balance
system, which has resulted in in this account. During the year
the company has reconciled to
uncleared credit balance of Rs.8.85
certain extent duly brought
Crore.
down the amount to Rs. 8.85
Crore (Previous year Rs.14.70
Crore), out of which 2.04 crore
were reconciled and cleared
currant financial year.
However, there are few legacy
transactions involved balance
amount. reconciliation
continuously on priority basis.

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3. Revenue module is not fully All efforts are made to

integrated with FICO module and integrate revenue module
variances are duly adjusted. with FICO Module.

2 Whether there is any During the year under consideration,

restructuring of an there is no case of restructuring of any
existing loan or cases of existing loan or case of waiver/write off
waiver/write off of of debts/loans/interest etc. by a lender
debts/loans/interest etc. to the Company.
made by a lender to the Informative only
company due to the
company’s inability to
repay the loan? If yes,
the financial impact
may be stated. Whether
such cases are properly
accounted for. (In case,
lender is a Government
company, then this
direction is also
applicable for statutory
auditor of lender
company).

3 Whether funds (grants/ According to the information and

subsidy etc.) received/ explanation given to us and on the basis
receivable for specific of our verification of the records funds
schemes from Central/ received/receivable from Central/State
State Government or its Governments under various projects/
agencies were properly schemes have been properly accounted
accounted for/utilized for and released to the beneficiaries/ Informative only
as per its term and spent/utilized as per guidelines and
conditions. List the terms & conditions as mentioned in the
cases of deviation. relevant sanction letters.

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REPLY TO ANNEXURE C TO THE INDEPENDENT AUDITOR’S REPORT ON INTERNAL

FINANCIAL CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OF
SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013.

The Annexure C referred to in “Report on Other Legal and Regulatory Requirements” paragraph of our
Independent Auditor’s report of even date on the financial statements of Southern Power Distribution
Company of Telangana Limited (Formerly known as Central Power Distribution Company of Andhra
Pradesh Limited), Hyderabad.

Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of Southern Power Distribution
Company of Telangana Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh
Limited) (“the Company”), Hyderabad, as of 31st March, 2021 in conjunction with our audit of the financial
statements of the Company for the year ended on that date.

A. Management’s Responsibility for Internal Financial Controls

1. The Company’s management is responsible for establishing and maintaining internal financial controls
based on “the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.” These
responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.

B. Auditors’ Responsibility
2. Our responsibility is to express an opinion on the Company’s internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all material respects.

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3. An audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
4. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal controls system over financial reporting.

C. Meaning of Internal Financial Controls over Financial Reporting

5. A company’s internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
financial control over financial reporting includes those policies and procedures that:
i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and
iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company’s assets that could have a material effect on the financial
statements.

D. Internal Limitations of Internal Financial Controls over Financial Reporting

6. Because of the inherent limitation of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal control
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

E. Qualified Opinion
7. According to the information and explanations given to us and based on our audit, the following material
weaknesses have been identified in the operating effectiveness of the company’s internal controls over
financial reporting as at 31st March, 2021;

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8. Absence of control in respect of:

a) Seeking balance confirmations and

performing periodical reconciliations of Reconciliation is the continuation activity and the same
various receivables, payables, deposits, is being carried out periodically.
advances etc.

b) Capitalization of capital work orders Works are capitalized only upon submission of work
without work order completion completion certificate exceptionally where substantial
certificates and non-closure of work (Around 90%) expenditure is incurred and assets put to
orders. use, such work orders are closed on partial basis. The
same are regularized subsequently.

c) Reconciliation of various modules Efforts will be made to integrate various modules into
information with Finance module in finance module in SAP.
SAP.

9. A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over

financial reporting, such that there is reasonable possibility that a material misstatement/(s) of the
company’s annual financial statements will not be prevented or detected on a timely basis.
10. In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March, 2021, based on “the internal control over financial reporting criteria
established by the Company considering the essential components of internal controls stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India” and except for the possible effect of the material weaknesses described
above on the achievement of the objectives of the control criteria, the company’s internal financial
controls over financial reporting were operating effectively as at 31st March, 2021.

For and on behalf of the Company TSSPDCL

Sd/-
For RAMANATHAM & RAO Sri G. Raghuma Reddy
Chartered Accountants Chairman & Managing Director
Firm Registration Number: S-2934 DIN : 02943771

Sd/-
L. MAHESH KUMAR
Partner
Membership Number: 212851
UDIN:

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KALYANA CHAKRAVARTHI CH.
B.Com, LLB, ACS KCC & Associates
Company Secretary Company Secretaries

Form No. MR-3

SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2021
[Pursuant to section 204(1) of the Companies Act, 2013 and rule No.9 of the Companies
(Appointment and Remuneration Personnel) Rules, 2014]

To,
THE MEMBERS,
SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED,
CORPORATE OFFICE, 6-1-50, MINT COMPOUND,
HYDERABAD-500063.

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence
to good corporate practices by Southern Power Distribution Company of Telangana Limited (hereinafter
called the company). Secretarial Audit was conducted in a manner that provided us a reasonable basis for
evaluating the corporate conducts/statutory compliances and expressing my opinion thereon.
Based on my verification of the Southern Power Distribution Company of Telangana Limited books,
papers, minute books, forms and returns filed and other records maintained by the company and also the
information provided by the Company, its officers, agents and authorized representatives during the conduct
of secretarial audit, I hereby report that in my opinion, the company has, during the audit period covering
the financial year ended on 31st March, 2021 complied with the statutory provisions listed hereunder and
also that the Company has proper Board processes and compliance-mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter:
I have examined the books, papers, minute books, forms and returns filed and other records maintained by
Southern Power Distribution Company of Telangana Limited (“the Company”) for the financial year ended
on 31st March, 2021 according to the provisions of:
i. The Companies Act, 2013 (the Act) and the rules made there under;
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’), Securities and Exchange Board of India
Act, 1992 (SEBI) and SEBI Guidelines and Regulations to the extent they are applicable.
iii. The Electricity Act, 2003 read with the Electricity Rules, 2005 and Regulations of the appropriate
Commission issued from time to time.
iv. The Environment (Protection) Act, 1986

I have also examined compliance with the applicable clauses of the Secretarial standards issued by the
Institute of Company Secretaries of India.

Plot No. 101, 1st Floor, Upstairs State Bank of Mysore, Chaitanya Chamber, Chaitanyapuri, Hyderabad - 500 034.
21st
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KALYANA CHAKRAVARTHI CH.
B.Com, LLB, ACS KCC & Associates
Company Secretary Company Secretaries

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,
Guidelines, Standards, etc., mentioned above subject to the following observations:

1. The Company is yet to comply with the provisions of Section 149(4) of the Companies Act, 2013
relating to appointment of Independent Directors and women Director on its Board. Consequently,
company yet to comply with the constitution of committees with independent director as per the provisions
of the Companies Act, 2013.

I further report that

Subject to the Paragraph No. 1 above of the Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors and Independent Directors. The changes
in the composition of the Board of Directors that took place during the period under review were carried out
in compliance with the provisions of the Act.
Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on
agenda were sent at least seven days in advance, and a system exists for seeking and obtaining further
information and clarifications on the agenda items before the meeting and for meaningful participation at
the meeting.

Sd/-
Name: KALYANA CHAKRAVARTHI CH.
FCS. No: 10770
Place: Hyderabad CP No. : 15103
Date: 04.09.2021 UDIN: F010770C000900241

This report is to be read with my letter of even date which is annexed as’ Annexure 1A’ and forms an integral part of this report.

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KALYANA CHAKRAVARTHI CH.
B.Com, LLB, ACS KCC & Associates
Company Secretary Company Secretaries

To, ANNEXURE-1A
The Members
Southern Power Distribution Company of Telangana Limited
Corporate Office, 6-1-50, Mint Compound,
Hyderabad -500063.

My report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. My

responsibility is to express an opinion on these secretarial records based on my audit.
2. I have followed the audit practices and processes as were appropriate to obtain reasonable assurance
about the correctness of the contents of the secretarial records. The verification was done on test basis to
ensure that correct facts are reflected in secretarial records. I believe that the processes and practices, I
followed provide a reasonable basis for my opinion.
3. I have not verified the correctness and appropriateness of financial records and Books of Accounts of
the company.
4. Wherever required, I have obtained the Management representation about the compliance of laws, rules
and regulations and happening of events etc.
5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards
is the responsibility of management. My examination was limited to the verification of procedures on
test basis.
6. The Secretarial Audit report is neither an assurance as to future viability of the company nor of the
efficacy or effectiveness with which the management has conducted the affairs of the company.

Sd/-
Name: KALYANA CHAKRAVARTHI CH.
Place: Hyderabad FCS. No: 10770
Date: 04.09.2021 CP No. : 15103

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ANNEXURE ‘C’ TO DIRECTORS REPORT

Management Reply to the Secretarial Auditor Observations

Management Reply to the Observations of the

Observations of the Secretarial Auditor
Secretarial Auditor

1. The Company is yet to comply with the TSSPDCL is a State Government Company within
provisions of Section 149(4) of the the meaning of section 2(45) of the Companies Act,
Companies act, 2013 relating to 2013 and as per Article 30(d) of Articles of
appointment of Independent Directors and Association of the Company, Powers to appoint
Woman Director on its Board. Directors vests with Government of Telangana (acting
Consequently, company yet to comply through Energy Department).
with the constitution of committees with
The Company or its Board is not vested with any
independent directors as per the
powers in the said matter and hence the matter is being
provisions of the companies act, 2013.
followed up rigorously with the Energy Department
and Several Letters were addressed to Energy
Department, Government of Telangana to expedite
the process of Appointment of Independent directors
& Women Director on the Board to comply with
Section 149 of the Companies act, 2013 and awaiting
for the orders.

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ANNEXURE ‘D’ TO THE DIRECTORS’ REPORT

Particulars relating to Energy Conservation, Technology Absorption and Foreign Exchange Earnings and
Outgo as per Companies (Disclosure of particulars in the report of Board of Directors) Rules 1988 & 2014;

A. Conservation of Energy: 1. 100KW roof top solar power plant at corporate office,
a) Energy conservation measures. Hyderabad. The plant generating an average 500 -
520(KWh) units per day.
2. 95,448 Nos High Voltage Distribution System (HVDS) for
Agriculture Pump Sets were set up.
3. TSSPDCL has proposed to distribute 1,00,000 Nos. LED
bulbs by C- Quest and the status of distribution of LED
bulbs as on 31.10.2018 is as follows.

Proposed Distributed Balance

1,00,000 78,110 21,890

b) Additional investment and

proposals, if any, being NA
implemented for reduction of
consumption of energy;

c) Impact of the measures at (a) and The energy losses in F.Y.2020-21 are significantly lower than
(b) above for reduction of energy the previous year. The Energy Losses to Energy Input
consumption and consequent percentage decreases to 9.36% in F.Y.2020-21 as against
impact on the cost of production 9.43% in F.Y.2019-20.
of goods;

d) Total energy consumption and

energy consumption per unit of
production as per Form A of the
Not Applicable
Annexure in respect of industries
specified in the Schedule thereto.

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B. Technology absorption : 1. 31 Nos. substations works are completed and charged,

191.13Km of 33 KV OH Line, 3550.46 km 11KV OH line
e) Efforts made in technology & 4832.95 km LT Line, 22.30 km, 33KV UG cable and
absorption 38.75 km 11 KV UG cable is erected.
2. Implementing AMR for HT Services and monitoring 11 KV
Feeders.
3. Meter Data Acquisition System (MDAS) is being
implemented.
4. SCADA control for all 228 Nos. of 33/ 11KV Sub-Stations,
DMS (Distribution Management System) for operation of
156 Nos.11KV feeders in core city of Hyderabad &
Communication System.

C. Foreign exchange
earnings and outgo:

f) Activities relating to exports;

initiatives taken to increase
exports; development of new Not Applicable
export markets for products and
services; and export plans.

g) Total foreign exchange used and NIL

earned.

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C&AG OF INDIA FINAL COMMENTS AND THE REPLIES

OF TSSPDCL FOR THE YEAR 2020-21

Sl.
Gist of the Final Comment Reply of the Company
No

1 Statement of Profit and Loss The Government of India has announced Special
Expenses Economic Package Covid-19, policy for offering
Finance Costs (Note 26): Rs.1905.46 crore financial assistance under the liquidity infusion
scheme. The purpose of financial assistance under
1. The above does not include Rs. 142.63 this package is for clearance of outstanding dues
crore being guarantee commission of CPSE/GENCOs /TRANSCO, IPPs and RE
payable to the GoT for the year generators.
2020-21 towards Government Guarantee TSDISCOMS have opted for Special Economic
in respect of loans availed by the Package – Covid-19 wherein TSDISCOMs have
Company. This resulted in to provide un-conditional and irrevocable State
understatement of Finance Cost, Current Government Guarantee for availing Special Long
Liabilities and loss for the year by Term Transition Loan for COVID-19 from M/s
Rs.142.63 crore. PFC, New Delhi & M/s. REC, New Delhi.
As per the request of TSDISCOMS, the
Government of Telangana has accorded approval
providing Government Guarantee for
Rs.12,600.00 crore to the TSSPDCL and
TSNPDCL as security towards the loan
sanctioned by PFC, New Delhi and M/s. REC,
New Delhi.
Due to prevailing COVID-19 pandemic
throughout the State of Telangana, TSDISCOMS
have witnessed drastic reduction in Revenue
collections due to non-payment of Electricity
Bills by its customers. The fiscal position of
TSDISCOMS does not leave any scope for
surplus funds.
However, as advised by the Audit, TSSPDCL will
address a Letter to the State Government for
making the adjustment of Rs.142.63 Crore
towards Guarantee Commission from the
amounts receivable by TSSPDCL.

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Sl.
Gist of the Final Comment Reply of the Company
No

2 B. Comments on Disclosure It is to submit that, the difference of Wheeling

The levy of wheeling charges on the non- Charges and Transmission Charges between the
conventional energy sources and mini-power MOUs entered with various Third party / Captive
plants set up by private sector for captive Generators and Retail Tariff Orders have been
consumption were governed by MoUs / calculated starting from the F.Y.2002-03 as per the
Orders issued by the Government. Based on Hon’ble Supreme Court of India Final Judgement
Aggregate Revenue Requirement (ARR) filed Dated 29.11.2019.
by the then APTRANSCO before the State
Further, it is to submit that the Hon’ble Supreme
Electricity Regulatory Commission (the
Court of India has upheld that the State Electricity
Commission) for the year 2002-03 seeking
Regulatory Commission is the authority to
revision in wheeling charges, the Commission
determine the Wheeling Charges Tariff from time
determined that the wheeling charges for the
to time.
year 2002-03 would be Rs.0.50 paiseper unit
(KWH) for energy transmitted and Accordingly, the demand notices for collection of
compensation in kind for system losses of difference of Wheeling Charges are prepared and
28.4 per centof energy input by the project issued in the month of June, 2020 to all the
developer. The project developers challenged respective HT Consumers who have availed
the said order in the Hon’ble High Court of captive/ third party sources in addition to DISCOM
Andhra Pradesh, which set aside the power starting from the April, 2002-03. Various
Commission’s order in May 2003. Power petitioners who approached the Hon’ble High court
utilities (DISCOMs) challenged the Court of Telangana and obtained the stay Order, have
order in the Hon’ble Supreme Court, which not questioned the levy of wheeling charges but
stated (29 November 2019) that the have raised the question as who should discharge
Commission constituted under the
the liability i.e., either Generator or Consumers.
ElectricityReforms Act, 1998 has the powers
Therefore, there is absolute certainty of recovery
to determine the wheeling charges.
of dues as per the judgement of Hon’ble Supreme
Based on the judgment of the Hon’ble Supreme Court of India and hence the same is recognized.
Court, the Company issued demand notices for
Rs.369.49 crore and Rs.1060.50 crore towards In obedience to the Hon’ble Supreme Court of India
principal for the period from 2002-03 to orders dated: 29.11.2019 the revenue amounting
2014-15 and delayed payment surchargeup to to Rs.1429.99 Crore towards actual difference of
January 2020 respectively on the scheduled Wheeling Charges of Rs. 369.49 Crore and
consumers and generators and recognised entire Surcharge for delay in payment amounting to
amount (Rs.1429.99 crore) as revenue during Rs. 1060.50 Crore were recognized as Revenue in
2020-21 (Revenue from Operations-Note 21). the books of accounts for the F.Y.2020-21 as per
Most of the scheduled consumers and the provisions of the Electricity Act, 2003 and
generators approached the Hon’ble High Court Tariff Orders approved by the TSERC.
of Telangana against the demand notices issued
by the Company and obtained stay orders.
However, these facts were not disclosed in the
Financial Statements.

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Sl.
Gist of the Final Comment Reply of the Company
No

3 The Company accounted for retirement It is to submit that, the defined benefit obligations
gratuity liability of Rs.221.89 crore during on account of post employment benefits and other
the year in respect of the employees long term employee benefits are evaluated through
appointed before and after 01.02.1999 as per an Actuary viz. Sri I. Sambhasiva Rao, FIAI for the
actuarial valuation, which considered year ending 31.3.2021. The Actuary has carried
maximum limit of Rs.12 lakh in respect of out the Actuarial valuation using the Projected Unit
employees appointed before 01.02.1999 and Credit Method as per AS 15 (Revised 2005) to
Rs.10.00 lakh in respect of employees determine the Present Value of Defined Benefit
appointed after 01.02.1999. As per orders Obligation and the related Service Costs in its report
issued by GoT in June 2021, maximum limit dated 28.06.2021, wherein the Gratuity liability
of retirement gratuity was enhanced from considered the existing maximum limit of
Rs.12 lakh to Rs.16 lakh, which is Rs.12,00,000/- and Rs.10,00,000 separately in
applicable to all State Government respect of employees appointed before 01.02.1999
employees from 01.04.2020. Further, as per and after 01.02.1999 respectively. The Government
the Gratuity Act, 1972 (amended) the of Telangana has enhanced the maximum limit of
maximum limit of retirement gratuity was Retirement Gratuity from Rs.12.00 lakh to Rs.16.00
enhanced to Rs. 20.00 lakh with effect from lakh to State Government employees vide G.O.
29.03.2018. However, the Company did not Ms.No.56 dated 11.06.2021 with retrospective effect
adopt the orders of GoT and Gratuity Act from 01.04.2020. Since the same was not adopted
to recalculate gratuity liability based on by TSSPDCL so far, the defined benefit obligation
enhanced limit of Rs.16 lakh and Rs.20.00 in respect of Gratuity was considered as 12.00 Lakhs
lakh. Although the Company adopted while carrying out actuarial valuation as per the
gratuity limit different from orders of GoT prevailing orders issued by the company vide
and Gratuity Act, financial impact could not SP.O.O.No. (CGM - HRD) Ms.No. 786, dated:
be quantified as it requires valuation by an 09.10.2015.
expert (Actuary). Accordingly, the Company has provided the
Further, as per disclosure at Note-24 under provision for defined benefit obligation towards
Employee Benefit Expenses read with Gratuity for an amount of Rs. 21.24 Crore in
significant accounting policy at 1.11(b) respect of employees recruited on or after
(Employee Benefits), the Company did not 01.02.1999 and an amount of Rs. 272.48 Crore in
disclose the significant accounting respect of employee recruited before 01.02.1999
assumptions adopted for calculating which included pension benefit obligation too.
retirement gratuity liability of different Hence, there is no understatement of employee
category of employees, applicable gratuity benefit expenses (Note No.24) and Gratuity
rules, and impact of deviations in Financial Liability (Note No.10) as the said G.O. has not
Statements. been adopted. It is assured that the maximum
ceiling of Rs. 16.00 Lakhs and 20.00 Lakhs will
be considered while arriving the defined benefit
obligations for the next financial year subject to
adoption of said G.Os.

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Sl.
Gist of the Final Comment Reply of the Company
No

4 Company extends various medical benefits It is to submit that, the Company has extended
to its employees and pensioners under four various medical benefits to its employees and
different medical schemes. Accounting pensioners. The medical benefits includes
Standard 15 – Employee benefits prescribes a) Existing Scheme of Rs.5 Lakh for life time,
that Medical care/benefits needs to be b) Modified medical Scheme for each spell Rs.4
valuated and should be provided in books of lakh limited to Rs.12 lakh, c) Additional modified
accounts by carrying out actuarial valuation. scheme limited to Rs.6 lakh and d) Self-funding
However, the Company has neither carried scheme limited to Rs.6 lakh per family per annum.
out the actuarial valuation nor accounted for
liability for medical benefits extended to its Further it is to submit that the company has neither
employees and pensioners. Further, the carried out Actuarial Valuation nor accounted for
Company did not disclose the fact of non- liability for medical benefits to the employees and
provision of the liability towards Medical pensioners so far. It is assured that the same will
care/benefits. be bring to the notice of the Management for
carrying out the Actuarial Valuation from the
financial year 2021-22.

5 Singareni Thermal Power Plant (STPP) It is submit that the TSERC (Terms & Conditions
claimed an amount of Rs. 31.46 crore towards of Generation tariff) Regulation No. 1 of 2019
variation of Gross Calorific Value (GCV) for issued on 04.01.2019. wherein, a formula has been
the year 2019-20 and 2020-21 through prescribed at Clause 21.6 to compute ECR for coal
monthly energy supply charges bills on ‘as based generating stations in which the GCV of coal
fired GCV’ basis as per Clause 21.10 of (primary fuel) CVPF should be considered on “as
SERC tariff order. However, the Company received” basis, which means the GCV of coal
contested the claims while regulating the coal measured at the unloading point of the thermal
bills ‘as received GCV’ basis in the variable generating stations (as received) shall be
cost (energy charges). The matter was taken considered as extracted below:
up with Telangana State Electricity TSERC Regulation No. 1 of 2019
Regulatory Commission (TSERC) for
clarification, which was pending. Hence, the Further the Clause-21.6: Energy Charge Rate
facts should have been disclosed in Financial (ECR) in Rupees per kWh on ex-power plant basis
Statements. shall be determined to three decimal places in
accordance with the following formulae
21.6.1.For Coal based stations
ECR = {(GSHR - SFC x CVSF) x LPPF /
CVPF+SFCxLPSFi+LC x LPL} x 100 / (100 -
AUX).
21.6.2 For gas and liquid fuel based stations
ECR = GSHR x LPPF x 100 / {CVPF x (100 –
AUS)}

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Sl.
Gist of the Final Comment Reply of the Company
No
Where,
AUX = Normative Auxiliary Energy Consumption
in percentage
CVPF= Weighted Average Gross Calorific Value
of Coal as received in kCal per kg for coal based
stations.
Whereas at Clause 21.10 of the said Regulation, it
has been stipulated that any variation in fuel price
on account of change in GCV of coal shall be
adjusted on a monthly basis on the basis of average
GCV of coal ‘as fired’ for a station, which is
measured at Bunker level before coal is fed into the
Boiler and the stipulation is intended to take into
account the quantum of coal fired (burnt) during a
month but certainly not intended to consider the GCV
of coal on “as fired” basis, which runs contrary to
Clause 21.6. As such a difficulty has arisen in
implementing the said Regulation, since there would
be a loss of GCV from Received basis to fired basis
due to several factors such as stacking and storage
losses in the coal yard etc., and to compensate such
GCV loss, additional coal has to be burnt, which
translates into higher ECR and consequent burden
on DISCOMs/Consumer. Further, even the CERC
Tariff Regulations also prescribed to consider GCV
of coal on “as received” basis only, which have been
adopted the Hon’ble TSERC.
In view of the above, a letter has been addressed
to, the Hon’ble Commission by CGM (IPC&RAC)/
TSSPDCL vide Lr.No:1046/20 dt:16.02.21 being
a lead procurer and requested to address/removal
of the aforesaid difficulty in terms of Clause 26.3
of the said Tariff Regulation by issuing necessary
amendment to the Regulation under the power to
amend provision at clause 26.8.
The request of TSSPDCL/TSDISCOMs is under
active consideration by Hon’ble TSERC.
Hence, there is no understatement of PP cost of
and current liabilities (Rs.31.46 Crore).

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Gist of the Final Comment Reply of the Company
No

6 STPP submitted (June 2019) power bills for It is to submit that the Hon’ble TSERC vide its
the period from 2016-17 to 2018-19 towards Order Dt: 28.08.2020 has approved True-Up for
additional coal bills, incentive, water charges F.Y.2016-17 to 2018-19 and Multi Year Tariff
and other charges to the Telangana State for F.Y.2019-20 to F.Y.2023-24. However, in
Power Coordination Committee (TSPCC), para No. 4.24 with regard to billing items
which decided to defer the claim till STPP mentioned in the Provisional Comment. TSERC
obtains the approval of the TSERC for has stated that the commission is not inclined to
additional claims amounting to Rs.121.92 take up the issues of these billing items in the
crore, being the Company’s share of 70.55 present proceedings. Further, the Commission
per cent of total Rs. 172.81 crore. The facts directed SCCL to file separate Petition on the said
should have been disclosed in Financial billing items.
Statements.
As such, TSPCC/TSDISCOMS have not admitted
the above bills and decided to defer the claim till
Singareni Thermal Power Project (STPP) obtains
the approval for the additional items from TSERC.
Till date no direction/order is received from
Hon’ble TSERC to consider the above claims.
In view of the above and stating the factual
position, providing of contingent liability at this
stage, without ascertaining the actual liability and
Hon’ble TSERC approval, may not be warranted.
However, the action as per accounting practice
will be considered based on the disposal of petition
filed by M/s Singareni Collieries Company Ltd -
(STPP)

For and on behalf of the company TSSPDCL

Sd/-
Sri G. Raghuma Reddy
Chairman & Managing Director
DIN : 02943771

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84
TSSPDCL Report 2020-21

Sri G. Raghuma Reddy, CMD, TSSPDCL with Sri D. Prabhakar Rao, CMD,
TS TRANSCO & TS GENCO
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FINANCIAL
STATEMENTS

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SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

CIN U40109TG2000SGC034116
(Formerly Central Power Distribution Company of Andhra Pradesh Limited)
BALANCE SHEET AS AT 31ST MARCH, 2021 (Amount in Rs.)
PARTICULARS Note No. As at March 31, 2021 As at March 31, 2020
I EQUITY AND LIABILITIES
áøÏ«{° eT]j·TT n|ü⁄Œ\T
1 Shareholders’ Funds
yê{≤<ës¡T\ ì~Û
(a) Share Capital 2 1,20,17,93,03,060 1,20,17,93,03,060
yê{≤ eT÷\<ÛäqeTT
(b) Reserves and Surplus 3 (2,90,49,42,53,229) (2,50,73,75,26,429)
ì~Û eT]j·TT $T>∑T\T
(c) Money received against share
warrants - -
2 Share application money
pending allotment
i. Funds by Government of Telangana 3.1
3 Non-Current Liabilities - -
Á|üdüTÔ‘˚‘·s¡ n|ü⁄Œ\T
(a) Long-term Borrowings 4 1,56,93,37,23,686 95,87,52,33,480
Bs¡Èø±*ø£ n|ü⁄Œ\T
(b) Deferred tax liabilties (Net) - -
yêsTT<ë y˚j·Tã&çq |üqTï
(c) Other Long term liabilities 5 3,29,64,59,489 3,23,20,12,904
Ç‘·s¡ Bs¡Èø±*ø£ n|ü⁄Œ\T
(d) Long-term Provisions 6 23,60,02,24,563 20,79,21,04,130
Bs¡Èø±*ø£ πø{≤sTT+|ü⁄\T
4 Current Liabilities
Á|üdüTÔ‘· n|ü⁄Œ\T
(a) Short-term Borrowings 7 6,27,10,37,363 17,18,13,62,053
dü«\Œø±*ø£ s¡TDeTT\T
(b) Trade Payables 8 1,98,80,67,41,933 1,97,84,92,47,895
yê´bÕs¡ ì$T‘·Ô+ #Ó*¢+|ü⁄\T
(c) Other Current Liabilites 9 86,62,45,59,463 67,69,90,63,436
Ç‘·s¡ Á|üdüTÔ‘· n|ü⁄Œ\T
(d) Short-term Provisions 10 4,24,68,93,696 5,94,48,81,447
dü«\Œø±*ø£ πø{≤sTT+|ü⁄\T
TOTAL (yÓTT‘·ÔeTT) 3,09,46,46,90,025 2,78,01,56,81,976

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II ASSETS (ÄdüTÔ\T)
1 Non-Current Assets
Á|üdüTÔ‘˚‘·s¡ ÄdüTÔ\T
(a) Property, Plant And Equipment dæús¡ ÄdüTÔ\T
i) Tangible Assets 11 91,06,14,78,700 89,73,62,47,324
düŒs¡Ù #·s¡yÓTÆq ÄdüTÔ\T
ii) Intangible Assets 2,73,50,354 4,41,85,557
ndüTŒèX¯´ ÄdüTÔ\T
iii) Capital Work in Progress 10,36,76,86,742 10,26,41,39,504
»s¡T>∑T#·Tqï |üqT\ô|’ ô|≥Tºã&ÉT\T
(b) Non-Current Investments 12 4,56,97,00,000 4,57,43,00,000
Á|üdüTÔ‘˚‘·s¡ ô|≥Tºã&ÉT\T
(c) Deferred Tax Assets (Net) 13 20,11,57,88,320 16,34,93,49,486
yêsTT<ë y˚j·Tã&çq |üqTï
(d) Long-term loans and advances 14 1,76,24,12,089 1,80,13,52,201
Bs¡Èø±*ø£ n|ü⁄Œ\T eT]j·TT ãj·÷Hê\T
(e) Other Non-current Assets 15 6,43,70,550 7,04,66,529
Ç‘·s¡ Á|üdüTÔ‘˚‘·s¡ ÄdüTÔ\T
2 Current Assets (Á|üdüTÔ‘· ÄdüTÔ\T)
(a) Current Investments - -
Á|üdüTÔ‘· ô|≥Tºã&ÉT\T
(b) Inventories 16 1,65,48,98,557 2,22,51,63,553
düs¡≈£î ì\«
(c) Trade Receivables 17 1,09,89,61,80,858 86,57,65,05,478
yê´bÕs¡ ì$T‘·Ô+ sêã&ÉT\T
(d) Cash and cash equivalents 18 3,36,21,77,140 3,49,19,57,352
q>∑<äT ì\«
(e) Short-term Loans and Advances 19 15,10,51,01,933 14,10,76,39,810
dü«\Œø±*ø£ n|ü⁄Œ\T eT]j·TT ãj·÷Hê\T
(f) Other Current Assets 20 51,47,75,44,782 48,77,43,75,182
Ç‘·s¡ Á|üdüTÔ‘· ÄdüTÔ\T
TOTAL (yÓTT‘·ÔeTT) 3,09,46,46,90,025 2,78,01,56,81,976
Summary of significant 1
Accounting Policies
The Accompanying notes are the integral part of the Financial Statements
As per our report of even date For and on behalf of the Board of Directors of
Southern Power Distribution Company of Telangana Limited

For M/s. Ramanatham & Rao Sd/- Sd/-

Chartered Accountants Sri P. Narasimha Rao Sri G. Raghuma Reddy
FR No. 002934 S Director Finance / CFO Chairman & Managing Director
DIN : 08242557 DIN : 02943771
Sd/-
L. Mahesh Kumar
Partner Sd/- Sd/-
M. No 212851 P. Krishna Reddy Anil Kumar Voruganti
Date : 06-09-2021 Chief General Manager Company Secretary
Place: Hyderabad (Finance) F.No. 9521

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SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

CIN U40109TG2000SGC034116
(Formerly Central Power Distribution Company of Andhra Pradesh Limited)
STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED 31ST MARCH, 2021 (Amount in Rs.)
PARTICULARS Note No. 2020-21 2019-20

I Revenue from Operations 21 2,40,73,40,71,668 2,46,00,86,91,343

ìs¡«Vü≤D <ë«sê ¬s$q÷´
II Other Income 22 70,60,40,532 46,78,45,825
Ç‘·s¡ Ä<ëj·TeTT
III Total Revenue yÓTT‘·Ô+ ¬s$q÷´ 2,41,44,01,12,200 2,46,47,65,37,168
IV Expenses (e´j·TeTT)
Power Purchase Expense 23 2,37,03,06,25,418 2,49,07,26,01,112
$<äT´‘·TÔ ø=qT>√\T
Employee Benefit expense 24 22,40,77,03,974 23,14,43,88,541
ñ<√´>∑T\ J‘·uÛÑ‘ê´\T
Operation and Other Expenses 25 2,88,47,50,479 2,61,67,83,492
ìs¡«Vü≤D eT]j·TT Ç‘·s¡ Ks¡TÃ\T
Finance Costs 26 19,05,46,28,896 14,89,50,74,407
Ä]úø£ e´j·TeTT\T
Depreciation and amortisation 11 10,66,58,09,531 9,86,56,00,467
expense (‘·s¡T>∑T<ä\)
Total Expenses yÓTT‘·Ô+ e´j·T+ 2,92,04,35,18,298 2,99,59,44,48,019
V Profit /(Loss) before exceptional &
extraordinary items and tax (III-IV) (50,60,34,06,098) (53,11,79,10,851)
|üqTï, mø˘‡|ü¸q˝Ÿ eT]j·TT nr‘·eTT\≈£î eTT+<äT ˝≤uÛÑeTT
VI Exceptional Items mø˘‡|ü¸q˝Ÿ ◊≥yéT‡ 27 (4,37,73,76,070) 1,48,66,44,573
VII Profit /(Loss) before extraordinary
items and tax (V-VI) (46,22,60,30,028) (54,60,45,55,424)
VIII Extraordinary Items nr‘·eTT\T - -
IX Profit /(Loss) before tax (VII-VIII) (46,22,60,30,028) (54,60,45,55,424)
|üqTï≈£î eTT+<äT ˝≤uÛÑeTT
X Tax Expense: |üqTï e´j·TeTT
(1) Current Tax Á|üdüTÔ‘· |üqTï - -
(2) Deferred Tax yêsTT<ë y˚j·Tã&çq|üqTï 3,76,64,38,834 5,20,20,70,714

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PARTICULARS Note No. 2020-21 2019-18

XI Profit/(Loss) for the period from

continuing operations (IX-X) (42,45,95,91,194) (49,40,24,84,710)
ìø£s¡ ˝≤uÛÑeTT
XII Profit/(Loss) from discontinuing
operations - -
XIII Tax expense of discontinuing
operations - -
XIV Profit/(loss) from discontinuing
operations (after tax) (XII-XIII) - -
XV Profit /(Loss) for the period
(XI +XIV) ìø£s¡ ˝≤uÛÑeTT (42,45,95,91,194) (49,40,24,84,710)
XVI Earnings per equity share:
(1) Basic (3.53) (4.65)
(2) Diluted (3.53) (4.65)
Summary of significant
Accounting Policies 1

The Accompanying notes are the integral part of the Financial Statements

As per our report of even date For and on behalf of the Board of Directors of
Southern Power Distribution Company of Telangana Limited

Sd/- Sd/-
For M/s. Ramanatham & Rao Sri P. Narasimha Rao Sri G. Raghuma Reddy
Chartered Accountants Director Finance / CFO Chairman & Managing Director
FR No. 002934 S DIN : 08242557 DIN : 02943771

Sd/- Sd/- Sd/-

L. Mahesh Kumar P. Krishna Reddy Anil Kumar Voruganti
Partner Chief General Manager Company Secretary
M. No 212851 (Finance) F.No. 9521
Date : 06-09-2021
Place: Hyderabad

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SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED

CIN U40109TG2000SGC034116
(Formerly Central Power Distribution Company of Andhra Pradesh Limited)
CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH, 2021 (Amount in Rs.)
Year Ended 31st Year Ended 31st
PARTICULARS
March, 2021 March, 2020
A . Cash flows from operating activities:
Net Profit before tax (46,22,60,30,028) (54,60,45,55,424)
Adjustments :
Add: Depreciation 10,66,58,09,531 9,86,56,00,467
Add: Interest on Long Term Borrowings 4,49,79,61,811 3,11,69,94,399
Less: Interest on Investments (5,62,18,297) (5,88,92,222)
Add: Loss on Sale of Property Plant and Equipment
Add: Non Cash Expenditure
Less: Withdrawal of Depreciation on Consumer (3,75,44,76,223) (3,43,74,32,493)
Contributed Assets
Operating profit before working capital changes (34,87,29,53,206) (45,11,82,85,273)
Changes in Working Capital
Increase/(Decrease) in Non-Current Liabilities
Other Long Term Liabilities (35,36,42,025) 29,50,36,097
Long Term Provisions 2,80,81,20,433 2,29,58,58,117
(Increase)/Decrease in Non-Current Assets
Long-tem Loans & Advances 5,74,83,188 (16,90,84,220)
Other Non-current Assets 60,95,979 62,38,143
Increase/(Decrease) in Current Liabilities
Short Term Borrowings (10,91,03,24,690) 1,61,90,10,126
Trade Payables 95,74,94,038 27,25,34,29,702
Other Current Liabilities 18,92,54,96,027 8,78,46,68,014
Short Term Provisions (1,69,79,87,751) (10,67,75,770)
Increase/(Decrease) in Employee Liability - -
(Increase)/Decrease in Current Assets
Inventories 57,02,64,996 12,97,66,195
Trade Receivables (23,31,96,75,380) (17,57,58,03,859)
Short-term Loans & Advances (99,74,62,123) (2,42,66,47,385)
Other Current Assets (2,70,31,69,600) 6,35,81,69,977
Cash generated from operations (51,53,02,60,114) (18,65,44,20,136)
Net Cash flow from Operating Activities (51,53,02,60,114) (18,65,44,20,136)
B. Cash flows from investing activities:
Purchases/Investments of Property Plant (11,97,42,05,704) (22,24,70,89,122)
and Equipment

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Year Ended 31st Year Ended 31st

PARTICULARS
March, 2021 March, 2020
Purchases/Investments in Capital Work in Progress (10,35,47,238) 6,03,31,42,160
(Purchase of Investments)/Redemption 46,00,000 4,30,35,149
Interest on Investments 5,62,18,297 5,88,92,222
Investment in Capital Advances (1,85,43,076) 66,39,87,894
Increase in Other Long Term Liabilities 43,47,61,836 62,94,58,780
Net cash flow from investing activities (11,60,07,15,885) (14,81,85,72,917)
C. Cash flows from financing activities:
Consumer Contributions Received 6,43,57,75,177 7,66,52,35,484
Increase (Decrease) in Long Term Borrowings 61,05,84,90,206 13,84,82,57,155
Interest paid on Long Term Borrowings (4,49,79,61,811) (3,11,69,94,399)
Increase in Contingency Reserve 2,15,65,433 3,52,11,630
Increase in GIS Saving Fund (7,55,899) 15,97,573
Increase in Self Funding Medical Scheme (1,59,17,320) 11,49,33,507
Funds received in UDAY Scheme - -
Investment by Government of Telangana in DISCOM’s - 14,00,00,00,000
Decrease (Increase) in Surplus /retained Earnings - (6,83,12,305)
Decrease in Surplus /retained Earnings - (27,64,479)
Net cash flow from financing activities 63,00,11,95,786 32,47,71,64,166
Net Increase/ (Decrease) in cash and cash (12,97,80,212) (99,58,28,887)
equivalents during the year
Cash and cash equivalents at the beginning 3,49,19,57,352 4,48,77,86,239
of the year
Cash and cash equivalents at the end of the year 3,36,21,77,140 3,49,19,57,352

As per our report of even date For and on behalf of the Board of Directors of
Southern Power Distribution Company of Telangana Limited

Sd/- Sd/-
For M/s. Ramanatham & Rao Sri P. Narasimha Rao Sri G. Raghuma Reddy
Chartered Accountants Director Finance / CFO Chairman & Managing Director
FR No. 002934 S DIN : 08242557 DIN : 02943771

Sd/- Sd/- Sd/-

L. Mahesh Kumar P. Krishna Reddy Anil Kumar Voruganti
Partner Chief General Manager Company Secretary
M. No 212851 (Finance) F.No. 9521
Date : 06-09-2021
Place: Hyderabad

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NOTES TO FINANCIAL STATEMENTS FOR THE YEAR

ENDED 31ST MARCH, 2021
1 Company Overview
Southern Power Distribution Company of Telangana Limited (Formerly Central Power Distribution Company
of Andhra Pradesh Limited)[The Company] was incorporated under the Companies Act ,1956 as a public
limited company under the second transfer scheme notified by the Government of Andhra Pradesh (GoAP)
(vide G.O.Ms.No.35, Energy (Power-II) dated 31-03-2000), 30-03-2000 to carry on the business of distribution
and retail supply of power in the geographical spread of districts in Telangana and commenced commercial
operations from 01-04-2000. Company is a government company as defined under section 2(45) of the
Companies Act, 2013 and company is not listed under in any stock exchange.
During the Financial year 2014-15, State of Andhra Pradesh was bifurcated as States of Telangana and
residual State of Andhra Pradesh. Vide AP Reorganisation Act, 2014 [APR Act] w.e.f. 02.06.2014. In terms
of Schedule XII to the APR Act, two operating business circles of the Company, namely, Ananthpur and
Kurnool, were de-merged and Assets and Liabilities were transferred in terms of GO Ms. No.24
dated 29.05.2014 issued by Government of Andhra Pradesh.
Significant accounting policies
1.1 Basis of preparation
The financial statements are prepared under the historical cost convention on accrual basis , in accordance with
Indian Generally Accepted Accounting Principles (“GAAP”) and mandatory accounting standards specified
under Section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.
Accounting policies have been consistently applied except where a newly issued accounting standard, if initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto is
use. Management evaluates all recently issued or revised accounting standards on an ongoing basis.
1.2 Use of estimates
In preparation of the financial statements in conformity with GAAP, the Company is required to make
judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily
apparent from other sources. The estimates and the associated assumptions are based on historical experience
and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised and future periods affected. Significant
judgments and estimates about the carrying amount of assets and liabilities include useful lives of tangible
and intangible assets, impairment of tangible assets, intangible assets including goodwill, investments, contract
costs to be incurred to complete contracts, provision for doubtful debts, employee benefits and other provisions
and recoverability of deferred tax assets.
1.3 Cash flow statement
Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and any deferrals of accruals of past of future
cash receipts of payment. The cash flows from operating, investing and financing activities of the company
are segregated based on the available information.

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1.4 Revenue recognition

a) Sale of Power:
i) Revenue from Sale of Power is accounted for based on demand raised on consumers. Tariff rates
for sale of power are as per Tariff Order of The Telangana Electricity Regulatory Commission as
approved for the reporting period.
ii) Unbilled Revenue is recognised in the books of accounts on ‘Actual basis’, considering the events
occurring after balance sheet date.
iii) Bills raised for theft of energy, whether on a consumer or an outsider are not recognized in full until
the final assessment order is received from the competent authority of the Company. The amount
received against initial assessment is treated as “Other Deposits”.
iv) Sale of Power under open access mechanism is entered into by TSPCC on behalf of the company in
terms of SWAP arrangements with other traders/developers. The terms of SWAP transactions are
to get back/return the power @ 105% of the power lent/borrowed.
b) Other Income
i) Miscellaneous receipts are accounted on accrual basis.
ii) Recoveries whether from employees or outsiders are accounted as and when collected.
iii) Interest accrued on long term investment during the reporting period is credited to ‘Contingency
Reserve’.
1.5 Property, Plant And Equipment
a) Tangible Assets
Property, Plant And Equipment of the Company are stated in the books of accounts and disclosed in annual
accounts at Historical Cost, which includes incidental cost related to acquisition and installation less
accumulated depreciation. Borrowing costs during the period of construction/installation is added to the
cost of the eligible qualifying Assets. And specific useful lives have been adopted for significant components
of fixed assets for computation of depreciation. Lands which are received in the form of gifts were accounted
at stamp duty value.

b) Intangible Assets
Intangible assets are stated at cost less accumulated amortization and net of impairments, if any. An intangible
asset is recognised if it is probable that the expected future economic benefits that are attributable to the
asset will flow to the Company and its cost can be measured reliably. Intangible assets having finite useful
lives are amortised on a straight-line basis over their estimated useful lives.

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c) Capital work in progress

Fixed asset under construction, advance paid towards acquisition and cost of asset not put to use before the
year end, are disclosed as capital work in progress, which further includes
 Ten percent of the Cost of Capital Works capitalized to Capital Works towards Employee Cost and
Administration & General Expenses (8.5% on Employees cost and 1.5% on Administration &
General Expenses), as the Operation Circles are executing both Capital Works and Operation &
Maintenance Works and it is not practicable to maintain records to identify the man hours spent by
the staff on Capital Works.
 Interest relating to construction period is calculated based on the average interest rate of loans
drawn under a Scheme and capitalized. The interest is calculated from the date of expenditure
incurred on respective Work Orders of the Scheme.

1.6 Depreciation
a) Depreciation on Property Plant and Equipment is provided under the ‘Straight Line Method’ up to
90% of the original cost of assets, at the rates notified by the Ministry of Power, Government of
India vide Notification No. S.O.266 (E) dated 29th March, 1994. In view of this the management
opined that Schedule II to the Companies Act,2013 is not mandatorily applicable to the Company.
b) Depreciation is calculated from the date of capitalization or procurement of the asset.
c) With respect to the following Assets the rates applied during the previous reporting period ,as per
MoP are different from rates prescribed under Schedule II of Companies Act, 2013.

Description of Asset and Rates of Depreciation as per MoP

Buildings and Other Civil Works 3.02%
Capacitor Banks 5.27%
Plant & Machinery and Lines, Cables & Network 7.84%
Material Handling Equipments 7.84%
Meters / Meter Equipments 12.77 %
Office Equipments and Air Conditioners 12.77%
Furniture & Fixtures 12.77%
Computers and IT Equipments 12.77%
Vehicle – Car / Jeep / Scooter / Motor Cycle 33.40%
Vehicle – Lorry / Truck 33.40%
Battery Chargers 33.40%

Management has not carried out an assessment of effective rates as per Schedule-II to the Companies Act,
2013 and thus such information is not furnished for the reporting period.

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1.7 Impairment
Property Plant and Equipment are reviewed for impairment whenever events or changes in circumstances
indicate that their carrying amount may not be recoverable.

An impairment loss is recognised in the Statement of Profit and Loss if the carrying amount of an asset exceeds
its recoverable amount. Recoverable amount is the higher of an asset’s net selling price or value in use.

An impairment loss recognised on asset will be reversed when the conditions warranting impairment provision
no longer exists.

1.8 Consumers contributions, Grants and Subsidies

Consumer contributions are collected as per Tariff Order for the year towards Deposit works .These are
recognized in the Statement of Profit or Loss by allocating them over the periods and in proportion in which
depreciation on assets concerned is charged.

Grants and subsidies received from State Government towards expensive power purchase and other
government sponsored schemes are recognized in the Statement of Profit or Loss on accrual basis.

1.9 Investments
Investments are classified as long term based on intent of the management at the time of acquisition. Long
term investments are stated at cost and provision is made to recognize any decline, other than temporary, in
the value of the investments.

On the date of Balance Sheet the investments made with the AP Government, AP Transco, AP Genco and
APPDCL ,the status of these Investments were yet to be finalized as these entities were undergone demergers
on the event of State Bifurcation and settlement between the Telangana Government and Andhra Pradesh
Government is yet to settled.

1.10 Inventories
Inventories includes materials and supplies purchased to be consumed in rendering of services and work in
progress and also includes machinery spares and stores items which are to be used in connection with
Property Plant and Equipment and are valued at cost. Cost is determined on weighted average basis. Cost
includes insurance, freight, taxes and all other incidental expenses incurred to bring the inventories up to the
Stores.

1.11 Employee benefits

a) Short Term Employee Benefits
All employee benefits payable wholly within twelve months of rendering the service are classified as short
term employee benefits. Benefits such as salaries, wages and bonus etc. are recognized in the statement of
profit and loss in the period in which the employee renders the related service.

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b) Long Term Employee Benefits

Defined Contribution Plans
The company deposits the contributions for provident fund scheme to appropriate authorities and these
contributions are recognized in the statement of profit and loss in the financial year to which they relate.

Defined Benefit Plans

The company’s gratuity and pension plans are the defined benefit plans. The present value of gratuity and
pension obligation under such defined benefit plans are determined based on actuarial valuation carried out
by an independent actuary using the projected unit credit method, which recognizes each period of service
as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation is measured at the present value of the estimated future cash flows.
The discount rate used for determining the present valuation of the obligation under defined benefit plans, is
based on the market yield on government securities as at the valuation date having maturity periods
approximating to the terms of related obligations. Actuarial gains and losses are recognized immediately in
the statement of Profit and Loss.

Other Employee Benefits

Benefits under the company’s leave encashment scheme constitute other employee benefits. The liability in
respect of leave encashment is incorporated on the basis of actuarial valuation carried out by an independent
actuary at the year end.

1.12 Taxes on Income

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to
be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to
compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting
income originating during the current year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.
Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the
statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized
for deductible timing differences only to the extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets can be realized. In situations where
the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized
only if there is virtual certainty supported by convincing evidence that they can be realized against future
taxable profits.

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The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down
the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually
certain, as the case may be, that sufficient future taxable income will be available against which deferred tax
asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or
virtually certain, as the case may be, that sufficient future taxable income will be available.

1.13 Provision and contingencies

a) The company recognizes a provision when there is a present obligation as a result of a past event
and it is probable that it would involve an outflow of resources and a reliable estimate can be made
of the amount of such obligation. Such provisions are not discounted to their present value and are
determined based on the management’s estimation of the obligation required to settle the obligation
at the balance sheet date and adjusted to reflect management’s current estimates.
b) The policy for providing provision for bad and doubtful debts up to F.Y.2015-16 was based on non
litigated receivables outstanding for more than 60 months and w.e.f F.Y.2016-17 the accounting
policy has been changed i.e., based on LT Private bill stopped services arrears and HT Private bill
stopped (including court cases) outstanding arrears for more than 24 months.
1.14 Accounting for Demerger
Consequent to bifurcation of the State of Andhra Pradesh, two operating Circles of the Company were
demerged effectively on the appointed date, i.e., 02.06.2014 in terms with Schedule XII to the Andhra
Pradesh Re-organisation Act 2014. Accordingly, Assets and Liabilities of the Company were bifurcated
based on G.O.Ms. No.24 issued by united State of Andhra Pradesh. Financial Statements relating to this
bifurcation were adopted by the Board of the Company and Certified by Independent Chartered Accountants
and submitted to Expert Committee constituted under the APR Act. However in the case of Employees
related assets and liabilities, certain Long Term Liabilities, Long Term Loans and Advances, Cash and
Cash Equivalents and Long Term Receivables, the basis of bifurcation as specified in the GO mentioned
above could not followed and another basis was used for bifurcation of Assets and Liabilities and the
bifurcation proposals were approved by the Expert committee vide D.O. Lr.No. 5614/Expert committee/
2014 dated 15.03.2018. But the net settlement of assets receivable/liabilities payment was not taken place
and to that extent balances shared based on the other than geographical basis will be reflected in Financial
statements under the various heads namely, in Note No. 3 Capital Reserve for an amount of Rs. 723
Crore, in Note No. 4 Long Term Borrowings for an amount of Rs. 1683.60 Crore and the net receivable
on account of Demerger of assets and liabilities shared(both viz., Geographical basis and other than
Geographical basis was resulted into) for an amount of Rs. 2096.60 Crore have been shown in Note No.
20 under the head other current assets.

Accounting for Merger (Re-organisation of Districts in Telangana)

i) Consequent to Re-organisation of Districts and formation of new districts of Telangana w.e.f 11.10.2016
7 revenue mandals from jurisdiction of Karimnagar and Warangal which are under the jurisdiction of
TSNPDCL were now re-organised to Siddipet District.
ii) During the financial year 2019-20 all the entries relating to acquisition of Assets and taken over of
liabilities in respect of Husnabad are settled through Inter Corporate Dues from the TSNPDCL.

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iii) In the notes forming part of the financial statements, wherever there is no feasibility to present the
balances acquired in respect of Gundala Mandal as per classification of respective schedules, it is presented
as an direct addition to the balances forming part of schedules before bifurcation.
iv) The Govt of Telangana vide GO Ms No. 20 Dated: 23.02.2019 has re-transferred the Gundala Mandal
from the TSNPDCL Jurisdiction to TSSPDCL and the said Mandal was earlier transferred from the
TSSPDCL to TSNPDCL and with regard to the transfer of assets and liabilities, the TSSPDCL has
taken over the Network of Gundala Mandal w.e.f.01.04.2019, accordingly the assets and liabilities of
Gundala have been incorporated in the Financial Year 2019-20.
1.15 Earnings per Share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders
and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

1.16 Third Transfer Scheme Balances

(a) (i) The then Government of Andhra Pradesh (GoAP) vide G.O.Ms. No.58, Energy (Power-III), dated:
07-06-2005 notified the transfer of Bulk Supply Undertaking and Power Purchase Agreements
from Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) to the four Distribution
Companies (DISCOMs), in specified ratios, as on 09-06-2005. The share of the Company in
generation capacities of all generating stations allocated to the four DISCOMS is 43.48%.
(ii) The GOAP has, vide G.O. Ms No.53, Energy (Power-III), dated: 28.04.2008, amended the share of
four DISCOMs in the Generating Stations as per which the revised share of APCPDL is 46.06%.
This G.O. shall be deemed to have come into force with retrospective effect from 09.06.2005. The
retrospective implementation of the G.O. involves many calculations, revisions, etc. The Andhra
Pradesh Power Co-ordination Committee (APPCC) has requested the GoAP to amend the date of
implementation from April, 2008 onwards.
(iii) The Accounting of Purchase of Power as disclosed in the Note No. 23 is based on the revised share
of 46.06% and consequent to enactment of AP Reorganisation Bill, 2014 the Power Purchase ratio
has been further revised vide G O Ms. No.20 dated 08.05.2014 w.e.f. 02/06/2014 viz., 38.02%,
15.87 %, 15.80 % and 30.31% in respect of TSSPDCL, TSNPDCL, APEPDCL and APSPDCL
respective. And considering (38.02 Plus 15.87 %) as equal to 100 % of Both Discoms TSSPDCL
and TSNPDCL, the proportionate percentage of TSSPDCL comes to (38.02/53.89)*100 is equal to
70.55 % and similarly in respect of TSNPDCL (15.87/53.89)*100 is equal to 29.45 %. Accordingly,
TSPCC has allocated power purchase cost between the TSSPDCL and TSNPDCL in the ratio of
70.55 % and 29.45%.
(b) The cost of Power Purchase, Inter-State Sale of power and its accounting are being carried out by the
TSPCC and are intimated to the DISCOMs, which are adopted in the Company’s books.

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2 Share Capital
The Authorised, issued, subscribed and fully paid up share capital comprises of equity shares having par
value of Rs.10 each as follows

Particulars As at March 31, 2021 As at March 31, 2020

` `
Authorised
2000,00,00,000 Equity shares of `10 each 2,00,00,00,00,000 2,00,00,00,00,000
Issued, Subscribed And Paid-up

12,01,79,30,306 Equity shares of `10 each

1,20,17,93,03,060 1,20,17,93,03,060
fully paid up

TOTAL 1,20,17,93,03,060 1,20,17,93,03,060

A. Reconciliation of Shares Outstanding at the beginning and at the end of the year

Particulars As at 31st March 2021

(As at 31st March 2020)
Number `
Outstanding at the beginning of the year 12,01,79,30,306 1,20,17,93,03,060
(10,61,79,30,306) (1,06,17,93,03,060)
Issued during the year - -
(1,40,00,00,000) (14,00,00,00,000)
Bought back during the year - -
Outstanding at the end of the year 12,01,79,30,306 1,20,17,93,03,060
(12,01,79,30,306) (1,20,17,93,03,060)

B. Details of Share Holders holding more than 5% shares in the company

Name of Shareholder As at 31st March 2021

(As at 31st March 2020)
Equity Shares No.of Shares held % of Holding
Governor of Telangana 12,01,79,30,306 100%*
(12,01,79,30,306) (100%)
TOTAL 12,01,79,30,306
* Includes 9 shares held by Nominees of Govt. of Telangana.

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C. Terms/rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Entire equity shares
are held by the Governor of Telangana. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.
The Govt. of Telangana taken over the Loans for an amount of Rs. 5,550.21 Crore of TSSPDCL under
UDAY Scheme and out of which an amount of Rs. 4876.83 Crore released and the balance amount of
Rs. 673.38 Crore are not received as on 31.03.2021.

3 RESERVES & SURPLUS

Particulars As at March 31, 2021 As at March 31, 2020
` `

a. Consumer Contribution towards capital assets

Opening Balance 52,61,81,76,835 45,42,60,64,258
(+) Current year Receipts 5,82,82,61,805 7,19,21,12,577
Closing Balance 58,44,64,38,640 52,61,81,76,835
b. Subsidies towards cost of capital assets
Opening Balance 73,39,97,146 73,22,15,367
(+) Current year Receipts - -
Transfer on Merger -Gundala - 17,81,779
Closing Balance 73,39,97,146 73,39,97,146
c. Grants/Donations towards cost of capital assets
Opening Balance 6,78,63,75,152 6,31,50,34,024
(+) Current year Receipts 60,75,13,372 47,13,41,128
Closing Balance 7,39,38,88,524 6,78,63,75,152
Total (Closing balance of a+b+c) 66,57,43,24,310 60,13,85,49,133
Less: Withdrawal towards cost of Capital Assets
Opening Balance (25,54,32,47,474) (22,10,58,14,981)
(+) Current year Amortization to Statement of Profit and Loss (3,75,44,76,223) (3,43,74,32,492)
Closing Balance (29,29,77,23,697) (25,54,32,47,474)
Total 37,27,66,00,613 34,59,53,01,659
d. Statutory Reserves:
Contingency Reserve Fund
Opening Balance 53,09,14,478 49,57,02,848
(+) Current year Receipts 2,15,65,433 3,52,11,630
Closing Balance 55,24,79,911 53,09,14,478

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e. Capital Reserve on Demerger

Opening Balance 7,23,00,74,154 7,23,00,74,154
(+) Transfer on Demerger
Closing Balance 7,23,00,74,154 7,23,00,74,154
f. Surplus
Opening Balance (2,93,02,55,04,408) (2,43,62,30,19,705)
(+) Transfers on merger of Gundala (6,83,12,305) (6,83,12,305)
(+) Net Profit/(Net Loss) For the Current Year (42,45,95,91,194) (49,40,24,84,710)
Closing Balance (3,35,55,34,07,907) (2,93,09,38,16,720)

GRAND TOTAL (2,90,49,42,53,229) (2,50,73,75,26,429)

g. During the year 2020-21, the Company has received Consumer Contributions (including Subsidies, Grants
and Donations towards Cost of Capital Assets and Grants) amounting to Rs. 643.57 Crore (Previous year
Rs.766.34 Crore). In proportion in which depreciation on the concerned assets have been charged during
the year 2020-21, for an amount of Rs.375.45 Crore (Previous year Rs.343.74 Crore) have been treated as
withdrawal from consumer contribution and credited to Statement of Profit and Loss. And the Depreciation
on the Consumer Contributed assets have been restricted to 90 % of the value.

3.1 Share Application Money Pending For Allotment

Particulars As at March 31, 2021 As at March 31, 2020

Investment in Discoms by Govt. of Telangana - -
Funds received under the UDAY Scheme - -
TOTAL - -

4. Long Term Borrowings

S.No Particulars As at March 31, 2021 As at March 31,2020
` `
1. Bonds 20,24,65,00,000 20,24,65,00,000
2. Term Loans
i) From Banks 1,82,25,83,533 1,82,31,86,898
ii) From Other Parties 1,34,86,46,40,153 73,80,55,46,582
TOTAL 1,56,93,37,23,686 95,87,52,33,480

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Further Classification into Party Wise

LENDOR No. LENDOR NAME Non Current Non Current
BONDS (under FRP Scheme)
11224 APCPDCL PF TRUST 57,40,00,000 57,40,00,000
11225 APGENCO 1,76,60,00,000 1,76,60,00,000
11226 APTRANSCO PF TRUST 21,40,00,000 21,40,00,000
11227 SINGARENI COLLERIES 8,00,00,00,000 8,00,00,00,000
11228 APTRANSCO 92,10,00,000 92,10,00,000
11229 UNION BANK OF INDIA 2,62,50,00,000 2,62,50,00,000
11231 THE FEDERAL BANK 6,50,00,000 6,50,00,000
11232 STATE BANK OF INDIA 10,80,00,000 10,80,00,000
11233 STATE BANK OF INDIA 13,10,00,000 13,10,00,000
11234 BANK OF BARODA 59,00,00,000 59,00,00,000
11235 INDIAN OVERSEAS BANK 21,80,00,000 21,80,00,000
11236 CENTRAL BANK OF INDIA 21,80,00,000 21,80,00,000
11237 INDIAN BANK 1,75,00,00,000 1,75,00,00,000
11238 PUNJAB & SINDH BANK 17,40,00,000 17,40,00,000
11239 BANK OF INDIA 30,50,00,000 30,50,00,000
11248 APTRANSCO TRANCH-2 1,78,25,00,000 1,78,25,00,000
11276 HPGCL Employees Pension Fund Trust 10,00,00,000 10,00,00,000
11277 HPVPNL Employees Pension Fund Trust 12,00,00,000 12,00,00,000
11278 HPVPNL Employees Provident Fund Trust 3,00,00,000 3,00,00,000
11279 HPSEBL - General Provident Fund 5,50,00,000 5,50,00,000
11280 APGENCO Pension & Gratuity Trust 21,00,00,000 21,00,00,000
11281 TSGENCO Pension & Gratuity Trust 29,00,00,000 29,00,00,000
SUB-TOTAL 20,24,65,00,000 20,24,65,00,000
LONG TERM LOANS FROM BANKS (Under FRP Scheme)
11240 UNION BANK OF INDIA 41,32,77,129 41,36,09,043
11241 BANK OF INDIA 27,62,97,912 27,62,40,636
11242 CENTRAL BANK OF INDIA 19,73,24,462 19,73,11,924
11243 THE FEDERAL BANK 5,83,22,505 5,83,21,064
11244 INDIAN OVERSEAS BANK 20,65,06,215 20,65,57,483
11245 INDIAN BANK 27,62,42,055 27,63,70,338
11246 PUNJAB & SINDH BANK 15,79,37,434 15,79,33,554
11247 BANK OF BARODA 23,66,75,821 23,68,42,856
SUB-TOTAL 1,82,25,83,533 1,82,31,86,898

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LONG TERM LOANS FROM OTHERS

11001 12689055 SPA:PE REC 1,38,44,86,830 1,38,44,86,830
11002 13127123 P:SI REC (35,33,26,480) (35,33,26,480)
11003 REC - DDUGJY SCHEME 80,86,48,411 80,86,48,411
11007 RURAL ELECTRICAL CORPORATION 8,08,97,43,720 11,36,44,13,900
11008 POWER FINANCE CORPORATION 4,34,04,30,000 4,23,90,30,000
11011 GOVT. LOANS 20,55,53,775 20,55,53,775
11128 IE:DISTRIBUTION & RENOVATION 1,27,52,63,800 1,27,52,63,800
11251 REC-MEDIUM TERM LOAN 1,33,95,83,335 5,63,75,00,000
11252 Japan International Cooperation Agency (JICA) 3,72,11,33,869 3,16,98,74,000
11253 REC - 9 HRS POWER SUPPLY 2,29,94,66,469 2,78,20,85,575
11254 REC - BULK 2015-16 3,69,35,92,382 4,47,83,91,998
11255 REC - SPA:PE 2015-16 1,47,37,68,628 1,68,95,62,836
11257 PFS LIMITED 3,18,34,31,965 3,47,75,00,031
11258 PFC-IPDS Scheme 1,07,42,83,659 1,15,98,50,582
11259 REC - IE:DISTRIBUTION 2016-17 2,58,53,70,624 2,77,17,65,813
11266 REC - IE:DISTRIBUTION & BULK 6,49,21,86,261 6,87,89,88,201
11267 REC - SPECIAL LOAN 3,79,79,16,675 9,32,50,00,006
11268 PFC - MEDIUM TERM LOAN 5,95,52,25,872 10,85,26,68,647
11269 PFC - Term Loan 4,89,22,77,759 8,05,55,55,556
11270 IE:Distribution & Bulk (F.Y.2018-19) 1,44,64,01,500 1,44,64,01,500
11272 REC - IE:DISTRIBUTION (F.Y.2019-20) 56,05,90,800 56,05,90,800
11273 REC - BULK SCHEME (F.Y.2019-20) 4,42,94,63,000 4,42,94,63,000
11274 REC - BULK SCHEME (F.Y.2019-20) 1,00,18,03,700 50,17,91,500
11275 M/S. IREDA LIMITED 3,92,50,00,000 4,50,00,00,000
11282 Moratorium Loan - Capitalization - Capex 3,39,10,58,259 -
11283 Moratorium Loan - Capitalization - WC 2,66,68,38,116 -
11284 REC - SLTTL - Covid 19 35,46,50,00,000 -
11285 PFC - SLTTL - Covid 19 35,85,43,43,840 -
SUB-TOTAL 1,44,99,95,36,769 90,64,10,60,281
LESS Kurnool and Anantapur circles 10,13,48,96,616 16,83,55,13,699
Net off Kurnool and Anantapur 1,34,86,46,40,153 73,80,55,46,582
GRAND TOTAL 1,56,93,37,23,686 95,87,52,33,480

An amount of Rs.670.06 Crore were repaid against Loans pertains to Anantapur and Kurnool by the
TSSPDCL from 2014-15, the same was transferred as receivable from APSPDCL.

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Further Classification into Secured and Unsecured

LENDOR No. LENDOR NAME 31.03.2021 31.03.2020
Secured
i) From Banks
11240 UNION BANK OF INDIA 41,32,77,129 41,36,09,043
11241 BANK OF INDIA 27,62,97,912 27,62,40,636
11242 CENTRAL BANK OF INDIA 19,73,24,462 19,73,11,924
11243 THE FEDERAL BANK 5,83,22,505 5,83,21,064
11244 INDIAN OVERSEAS BANK 20,65,06,215 20,65,57,483
11245 INDIAN BANK 27,62,42,055 27,63,70,338
11246 PUNJAB & SINDH BANK 15,79,37,434 15,79,33,554
11247 BANK OF BARODA 23,66,75,821 23,68,42,856
Banks Sub-Total 1,82,25,83,533 1,82,31,86,898
ii) From Others
11001 12689055 SPA:PE REC 1,38,44,86,830 1,38,44,86,830
11002 13127123 P:SI REC (35,33,26,480) (35,33,26,480)
11003 REC - DDUGJY SCHEME 80,86,48,411 80,86,48,411
11007 RURAL ELECTRICAL CORPORATION 8,08,97,43,720 11,36,44,13,900
11008 POWER FINANCE CORPORATION 4,34,04,30,000 4,23,90,30,000
11128 IE:DISTRIBUTION & RENOVATION 1,27,52,63,800 1,27,52,63,800
11251 REC-MEDIUM TERM LOAN 1,33,95,83,335 5,63,75,00,000
11253 REC - 9 HRS POWER SUPPLY 2,29,94,66,469 2,78,20,85,575
11254 REC - BULK 2015-16 3,69,35,92,382 4,47,83,91,998
11255 REC - SPA:PE 2015-16 1,47,37,68,628 1,68,95,62,836
11257 PFS LIMITED 3,18,34,31,965 3,47,75,00,031
11258 PFC - IPDS 1,07,42,83,659 1,15,98,50,582
11259 REC - IE:DISTRIBUTION 2016-17 2,58,53,70,624 2,77,17,65,813
11266 REC - IE:DISTRIBUTION & BULK 6,49,21,86,261 6,87,89,88,201
11267 REC - SPECIAL LOAN 3,79,79,16,675 9,32,50,00,006
11268 PFC - MEDIUM TERM LOAN 5,95,52,25,872 10,85,26,68,647
11269 PFC - Term Loan 4,89,22,77,759 8,05,55,55,556
11270 IE:Distribution & Bulk (F.Y.2018-19) 1,44,64,01,500 1,44,64,01,500
11272 REC - IE:DISTRIBUTION (F.Y.2019-20) 56,05,90,800 56,05,90,800
11273 REC - BULK SCHEME (F.Y.2019-20) 4,42,94,63,000 4,42,94,63,000

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11274 REC - BULK SCHEME (FY2019-20) 1,00,18,03,700 50,17,91,500

11275 M/S. IREDA LIMITED 3,92,50,00,000 4,50,00,00,000
11282 Moratorium Loan - Capitalization - Capex 3,39,10,58,259 -
11283 Moratorium Loan - Capitalization - WC 2,66,68,38,116 -
Others Sub - Total 69,75,35,05,285 87,26,56,32,507
Total Secured Loans 71,57,60,88,818 89,08,88,19,405
LESS Kurnool and Anantapur 10,13,48,96,616 16,83,55,13,699
Net Off Kurnool and Anantapur 61,44,11,92,202 72,25,33,05,706

Unsecured - Bonds
LENDOR No. LENDOR NAME 31.03.2021 31.03.2020
11224 APCPDCL PF TRUST 57,40,00,000 57,40,00,000
11225 APGENCO 1,76,60,00,000 1,76,60,00,000
11226 APTRANSCO PF TRUST 21,40,00,000 21,40,00,000
11227 SINGARENI COLLERIES 8,00,00,00,000 8,00,00,00,000
11228 APTRANSCO 92,10,00,000 92,10,00,000
11229 UNION BANK OF INDIA 2,62,50,00,000 2,62,50,00,000
11231 THE FEDERAL BANK 6,50,00,000 6,50,00,000
11232 STATE BANK OF INDIA 10,80,00,000 10,80,00,000
11233 STATE BANK OF INDIA 13,10,00,000 13,10,00,000
11234 BANK OF BARODA 59,00,00,000 59,00,00,000
11235 INDIAN OVERSEAS BANK 21,80,00,000 21,80,00,000
11236 CENTRAL BANK OF INDIA 21,80,00,000 21,80,00,000
11237 INDIAN BANK 1,75,00,00,000 1,75,00,00,000
11238 PUNJAB & SINDH BANK 17,40,00,000 17,40,00,000
11239 BANK OF INDIA 30,50,00,000 30,50,00,000
11248 APTRANSCO TRANCH-2 1,78,25,00,000 1,78,25,00,000
11276 HPGCL Employees Pension Fund Trust 10,00,00,000 10,00,00,000
11277 HPVPNL Employees Pension Fund Trust 12,00,00,000 12,00,00,000
11278 HPVPNL Employees Provident Fund Trust 3,00,00,000 3,00,00,000
11279 HPSEBL - General Provident Fund 5,50,00,000 5,50,00,000
11280 APGENCO Pension & Gratuity Trust 21,00,00,000 21,00,00,000
11281 TSGENCO Pension & Gratuity Trust 29,00,00,000 29,00,00,000
SUB-TOTAL 20,24,65,00,000 20,24,65,00,000

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UNSECURED - OTHERS
11252 Japan International Cooperation Agency (JICA) 3,72,11,33,869 3,16,98,74,000
11011 GOVT. LOANS 20,55,53,775 20,55,53,775
11284 REC - SLTTL - Covid 19 35,46,50,00,000 -
11285 PFC - SLTTL - Covid 19 35,85,43,43,840 -
SUB-TOTAL 75,24,60,31,484 3,37,54,27,775
GRAND TOTAL OF SECURED AND UNSECURED LOANS 1,56,93,37,23,686 95,87,52,33,481

Securities charged for the Loans

a. Term Loans on FRP Scheme are guaranteed by Government vide G.O.Ms. 11 Dated 18.02.2014.

Note 4A: Securities offered for the Long Term Loans

Particulars As at March As at March

31, 2021 31, 2020
Term Loans from Others ` `

1. Loans from Rural Electrification Corporation Limited,

New Delhi. 38,57,85,17,904 40,01,85,27,685
i. Secured by the hypothecation of all the future Movables and
Stocks to be created under respective schemes of the project
out of the loan amount.
ii. Secured by way of (a) Creation of exclusive first charge by
way of Hypothecation of unencumbered existing assets and 7,80,43,38,126 14,96,25,00,006
(b) Hypothecation of receivables of Tariff Subsidy from Govt.
of Telangana.

2. Power Finance Corporation (PFC)

i. If the company achieves the target as stipulated in the agreement
and also if the project completes in time schedule, the loan 4,34,04,30,000 4,23,90,30,000
will be converted into grant.
ii. Charge is created on company movable assets (unencumbered
assets) including PTR Augmentation, Addl PTRs/DTRs/Addl
bays/LT/HT AB Cable/Reconductoring/Capacitor Bank/VCB/
R&C Works/Renovation & Modernisation works etc.. to be
10,84,75,03,631 18,90,82,24,203
created in following areas of utility located at Nalgonda, Hyd
Central, Master Plan, Hyd East, Hyd West towns of TSSPDCL
in the state of Telangana.
iii. Secured by the hypothecation of all the future Movables and
Stocks to be created under respective schemes of the project 1,07,42,83,659 1,15,98,50,582
out of the loan amount.

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3. Loans from Power Trading Corporation - Financial

Services Limited (PFS), New Delhi.
(Secured by Hypothecation of all Current assets (Present and
future) with the minimum coverage of 1.25 times of the
facility, including book-debts, receivables, outstanding
3,18,34,31,965 3,47,75,00,031
moneys, claims, demands, bills, guarantees, letters of credit,
contracts, engagements, stocks, shares, notes, bonds, warrants,
all stocks of raw materials, semi-finished goods, finished
goods, consumable stores, accounts receivable, operating cash
flows, treasury income, deposits of company with the third
parties and any other revenues.)
4. Loans from Indian Renewable Energy Development Agency
Limited (IREDA), New Delhi.
3,92,50,00,000 4,50,00,00,000
Secured by default escrow mechanism for entire IREDA loan
amount of Rs.450.00 Crores to the satisfaction of IREDA.
TOTAL 69,75,35,05,285 87,26,56,32,507

Total Long Term, Short Term Loans and Current Maturities of Long Term Debts for the year ended
LENDOR No. LENDOR NAME 31.03.2021 31.03.2020
BONDS
11224 APCPDCL PF TRUST 57,40,00,000 57,40,00,000
11225 APGENCO 1,76,60,00,000 1,76,60,00,000
11226 APTRANSCO PF TRUST 21,40,00,000 21,40,00,000
11227 SINGARENI COLLERIES 8,00,00,00,000 8,00,00,00,000
11228 APTRANSCO 92,10,00,000 92,10,00,000
11229 UNION BANK OF INDIA 2,62,50,00,000 2,62,50,00,000
11231 THE FEDERAL BANK 6,50,00,000 6,50,00,000
11232 STATE BANK OF INDIA 10,80,00,000 10,80,00,000
11233 STATE BANK OF INDIA 13,10,00,000 13,10,00,000
11234 BANK OF BARODA 59,00,00,000 59,00,00,000
11235 INDIAN OVERSEAS BANK 21,80,00,000 21,80,00,000
11236 CENTRAL BANK OF INDIA 21,80,00,000 21,80,00,000
11237 INDIAN BANK 1,75,00,00,000 1,75,00,00,000
11238 PUNJAB & SINDH BANK 17,40,00,000 17,40,00,000
11239 BANK OF INDIA 30,50,00,000 30,50,00,000
11248 APTRANSCO TRANCH-2 1,78,25,00,000 1,78,25,00,000
11276 HPGCL Employees Pension Fund Trust 10,00,00,000 10,00,00,000
11277 HPVPNL Employees Pension Fund Trust 12,00,00,000 12,00,00,000

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11278 HPVPNL Employees Provident Fund Trust 3,00,00,000 3,00,00,000

11279 HPSEBL - General Provident Fund 5,50,00,000 5,50,00,000
11280 APGENCO Pension & Gratuity Trust 21,00,00,000 21,00,00,000
11281 TSGENCO Pension & Gratuity Trust 29,00,00,000 29,00,00,000
Bonds Sub-Total 20,24,65,00,000 20,24,65,00,000
BANKS
11013 STATE BANK OF INDIA 98,09,32,861 2,73,92,26,447
11240 UNION BANK OF INDIA 41,69,15,717 41,72,47,631
11241 BANK OF INDIA 27,88,15,196 27,87,57,920
11242 CENTRAL BANK OF INDIA 19,92,55,869 19,92,43,331
11243 THE FEDERAL BANK 5,88,67,757 5,88,66,316
11244 INDIAN OVERSEAS BANK 20,84,79,541 20,85,30,809
11245 INDIAN BANK 27,88,48,447 27,89,25,578
11246 PUNJAB & SINDH BANK 15,94,09,933 15,94,06,053
11247 BANK OF BARODA 23,87,42,540 23,89,09,575
Banks Sub-Total 2,82,02,67,861 4,57,91,13,660
OTHERS
11001 12689055 SPA:PE REC 1,38,44,86,830 1,38,44,86,830
11002 13127123 P:SI REC (35,33,26,480) (35,33,26,480)
11003 REC - DDUGJY SCHEME 80,86,48,411 80,86,48,411
11007 RURAL ELECTRICAL CORPORAT 10,38,21,74,580 12,74,26,85,025
11008 POWER FINANCE CORPORATION 4,34,04,30,000 4,23,90,30,000
11011 GOVT. LOANS 20,55,53,775 20,55,53,775
11014 SHORT TERM LOANS ALL BANK & FIs 2,79,01,04,502 5,67,39,84,929
11128 IE:DISTRIBUTION & RENOVATION 1,27,52,63,800 1,27,52,63,800
11251 REC-MEDIUM TERM LOAN 3,88,95,83,335 7,56,25,00,000
11252 Japan International Cooperation Agency (JICA) 3,84,72,74,000 3,16,98,74,000
11253 REC - 9 HRS POWER SUPPLY 2,64,01,38,765 2,98,08,11,081
11254 REC - BULK 2015-16 4,24,75,68,566 4,80,15,44,772
11255 REC - SPA:PE 2015-16 1,62,53,16,160 1,76,64,29,766
11257 PFS LIMITED 3,61,34,31,949 3,72,83,33,355
11258 PFC - IPDS 1,16,00,79,751 1,24,58,75,842
11259 REC - IE:DISTRIBUTION 2016-17 2,71,44,58,068 2,83,47,42,237
11264 PFC - SHORT TERM LOAN 2,50,00,00,000 3,76,81,50,677
11265 PFC - FLEXI LINE OF CREDIT - 5,00,00,00,000
11266 REC - IE:DISTRIBUTION & BULK 6,75,00,54,225 6,87,89,88,201
11267 REC - SPECIAL LOAN 7,52,29,16,679 11,49,79,16,675

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11268 PFC - MEDIUM TERM LOAN 11,77,90,59,860 14,16,79,46,425

11269 PFC - Term Loan 8,22,56,11,095 10,00,00,00,000
11270 IE:Distribution & Bulk (F.Y. 2018-19) 1,44,64,01,500 1,44,64,01,500
11271 PFC - SGPP Scheme 57,78,567 45,69,342
11272 REC - IE:DISTRIBUTION (F.Y.2019-20) 56,05,90,800 56,05,90,800
11273 REC - BULK SCHEME (F.Y.2019-20) 4,42,94,63,000 4,42,94,63,000
11274 REC - BULK SCHEME (F.Y.2019-20) 1,00,18,03,700 50,17,91,500
11275 M/S. IREDA LIMITED 8,42,50,00,000 4,50,00,00,000
11282 Moratorium Loan - Capitalization - Capex 3,39,10,58,259 -
11283 Moratorium Loan - Capitalization - WC 4,31,75,00,480 -
11284 REC - SLTTL - Covid 19 35,46,50,00,000 -
11285 PFC - SLTTL - Covid 19 35,85,43,43,840 -
Others Sub-Total 1,76,24,57,68,017 1,16,82,22,55,464
LESS Kurnool and Anantapur 10,13,48,96,616 16,83,55,13,699
NET OFF OTHERS 1,66,11,08,71,401 99,98,67,41,765
Net Off Of Kurnool and Anantapur 1,89,17,76,39,262 1,24,81,23,55,425

5 Other Long Term Liabilities

Particulars As at March 31, 2021 As at March 31, 2020
` `
Vendor Deposits 1,54,41,61,307 1,84,03,71,427
Contribution Works 35,06,67,232 40,80,99,137
Other Liabilities 1,17,91,79,863 74,44,18,027
GIS - Insurance & Saving Fund 4,91,35,554 4,98,91,450
Self Funding Medical Scheme 17,19,77,963 18,92,32,863
Accidental Risk Self Funding Scheme 13,37,570 -
TOTAL 3,29,64,59,489 3,23,20,12,904

a. GIS Insurance & Savings Fund: With effect from 01.07.1985 Employees Group Insurance Scheme was
introduced in the place of erstwhile Family Benefit Fund Scheme. As per the said Scheme the contributions
of the Employees consists of two portions, the Insurance portion and the Savings portion. The future
liability of the Company as per the said Scheme could not be ascertained. The closing balance of the
Savings Fund held as on 31.03.2021 is Rs. 4.45 Crore (Previous Year Rs.4.53 Crore). The Closing
balance of GIS Insurance Fund as at 31.03.2021 is Rs. 0.46 Crore (Previous year Rs.0.46 Crore). During
the year the Interest on Savings Fund for an amount of Rs. 0.31 Crore (Previous Year Rs. 0.35 Crore)
have been debited and is shown under the Head ‘Interest and Finance Charges’.
b. The TSSPDCL has introduced the Self Funding Scheme towards coverage of accidental risk for a
maximum amount of Rs.5.00 lakhs in case of accidents occurred to the employees working in TSSPDCL
for a period of one year with contribution of Rs.155/- per employee.

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6 Long Term Provisions

Particulars As at March 31, 2021 As at March 31, 2020
` `
Provision for employee benefits
Gratuity (unfunded) 2,14,36,73,950 1,49,98,86,726
Leave Encashment (unfunded) 9,94,36,27,395 8,02,42,76,468
TSSPDCL Pension and Gratuity Trust(Funded) 11,51,29,23,218 11,26,79,40,936
TOTAL 23,60,02,24,563 20,79,21,04,130

a. Employees who have joined on or after 01.02.1999:

The employees who joined the Company after 01.02.1999 are covered under Employees Provident Fund
& Miscellaneous Provisions Act 1952, Employees Provident Fund Scheme, 1952 and The Payment of
Gratuity Act, 1972. The Company has carried out the actuarial valuation as at 31.03.2021 to arrive at the
present value of future obligations of the company and provided for current year provision. As per the said
valuation reports, the required provision for Gratuity for the year ended 31.03.2021 is Rs. 173.18 Crore
(Previous Year Rs. 156.20 Crore). Expenditure recognised under the head “Employee Benefit Expense” to
the extent of Rs. 21.24 Crore after paying benefits during the year to the extent of Rs. 4.26 Crore. The
funding status of the same is unfunded. As per the actuarial valuation report the current liability portion for
an amount of RS. 0.79 Crore was shown under the head of Short term Provisions of Note No. 10 and the
non current portion of liability for an amount of Rs. 172.39 Crore was shown under this head of Long
Term provisions.
b. Artisans who have joined in the Company
The Artisans who joined the Company are covered under Employees Provident Fund & Miscellaneous
Provisions Act 1952,Employees Provident Fund Scheme, 1952 and The Payment of Gratuity Act,1972.
The Company has carried out the actuarial valuation as at 31.03.2021 for the fisrt time as per Accounting
Standard 15 to arrive at the present value of future obligations of the company and provided for current
year provision. As per the said valuation reports, the required provision for Gratuity for the year ended
31.03.2021 is Rs.42.03 Crore. The same is recognised as Expenditure under the head “Employee Benefit
Expense “to the extent of Rs.42.03 Crore. The funding status of the same is unfunded. As per the
actuarial valuation report the current liability portion for an amount of RS.0.05 Crore was shown under
the head of Short term Provisions of Note No. 10 and the non current portion of liability for an amount
of Rs.41.98 Crore was shown under this head of Long Term provisions.
c. The Company has carried out actuarial valuation as at 31.03.2021 to arrive at present value of future
obligations of the Earned Leaves of the employees . The Balance in the provision for the year ended as
required by the actuarial valuation report is Rs.1048.47 Crore (Previous Year Rs.913.99 Crore) and
During the Year Rs.59.51 Crore was paid towards the Final Encashment. Therefore as per the said
valuation differential amount arrived after deducting the payments made towards earned leave resulted
in to short of by Rs.193.98 Crore which is debited to statement of Profit and Loss under the head of
“Employee Benefit Expenses”. The funding status of the same is unfunded. As per the Actuarial valuation
report the current portion of liability for an amount of Rs.54.10 Crore was shown under the head of
Short term Provisions note no. 10 and non current portion liability for an amount of Rs. 994.36 Crore
was shown under this head of Long term provision.
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d. The Company has carried out actuarial valuation as at 31.03.2021 to arrive at present value of future
obligations of the Pension and Gratuity in respect of employees recruited prior to 01.02.1999 and on roll
as on 31.03.2021 the actuarial valuation report given for providing the liability for the year ended
31.03.2021 is Rs 2799.34 Crore and of which, the existing plan assets for an amount of Rs.1648.05 the
existing liability in the books of account before making new provision is for an amount of Rs.878.81
Crore and for the balance amount of Rs.272.48 Crore is debited to statement of Profit and Loss under
the head of “Employee Benefit Expenses”. As per the actuarial valuations, the current liability is nil and
the total amount of Rs.1151.29 Crore is shown under this head of Long term provision.

7 Short Term Borrowings

S.No Particulars As at March 31, 2021 As at March 31, 2020
` `
1 Loans Repayable on Demand
i) From Banks 98,09,32,861 2,73,92,26,447
ii) From Other Parties 5,29,01,04,502 14,44,21,35,606
Total 6,27,10,37,363 17,18,13,62,053
Further Classification into Party Wise
11013 i) From SBI Banks 98,09,32,861 2,73,92,26,447
ii) From Other Parties
11264 PFC - SHORT TERM LOAN 2,50,00,00,000 3,76,81,50,677
11265 PFC - FLEXI LINE OF CREDIT - 5,00,00,00,000
11014 SHORT TERM LOANS FROM TS TRANSCO 2,79,01,04,502 5,67,39,84,929
Total 6,27,10,37,363 17,18,13,62,053
Further Classification into Secured and Unsecured
1 Secured
(a) Loans repayable on demand
i) From Banks
11013 STATE BANK OF INDIA 98,09,32,861 2,73,92,26,447
ii) From Others
11264 PFC - SHORT TERM LOAN 2,50,00,00,000 3,76,81,50,677
11265 PFC - FLEXI LINE OF CREDIT - 5,00,00,00,000
Sub-Total 2,50,00,00,000 8,76,81,50,677
Secured Total 3,48,09,32,861 11,50,73,77,124
2 Unsecured
(a) Loans repayable on demand
From banks - -
From other parties - -
11014 SHORT TERM LOANS FROM TS TRANSCO 2,79,01,04,502 5,67,39,84,929
TOTAL 6,27,10,37,363 17,18,13,62,053

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Note 7A Securities offered for the above secured Loans

Particulars As at March 31, 2021 As at March 31, 2020
` `
Short Term Loan
1. Banks 98,09,32,861 2,73,92,26,447
STATE BANK OF INDIA
(Secured by receivables specifically Hypothecated)
2. Power Finance Corporation Short Term Loan
Secured by creating a first charge by way of 2,50,00,00,000 3,76,81,50,677
hypothecation of Movable assets (except book debts)
3. Power Finance Corporation Flexi Line of Credit
Secured by creating a first charge by way of - 5,00,00,00,000
hypothecation of Movable assets (except book debts)
TOTAL 3,48,09,32,861 11,50,73,77,124

8 Trade Payables
Particulars As at March 31, 2021 As at March 31, 2020
` `
Unsecured
A. Micro, Small and Medium Enterprises (MSMEs) 6,18,42,973 8,55,95,953
B. Other than MSME
APEPDCL 9,91,12,89,138 9,92,60,69,849
APSPDCL (12,53,68,37,751) 1,11,34,51,901
TSNPDCL (8,83,05,81,898) (34,98,57,46,638)
TSGENCO (14,77,28,47,678) (21,59,75,21,785)
APGENCO 88,45,72,36,694 88,45,72,36,694
APTRANSCO 5,76,71,132 5,76,71,132
TSTRANSCO 9,86,52,06,341 4,80,20,83,808
Other Power Purchase Creditors 1,21,81,81,33,847 1,44,69,51,23,715
Other Payables 4,74,78,72,392 5,26,75,26,523
Trade Payables transfer on Merger- Gundala 2,77,56,743 2,77,56,743
TOTAL 1,98,80,67,41,933 1,97,84,92,47,895

a. Balances from other Discoms’, GENCOs’ & TRANSCOs’ are subject to confirmation and reconciliations.
b. Balances from other power purchase creditors and other payables are subject to confirmations and
reconciliation.
c. Trade payable other than acceptances include certain dues to Micro and Small Enterprises, under the
Micro, Small and Medium Enterprises Development Act, 2006 that have been determined based on the
information available with the company and the required disclosures are given below:

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d. Since the provision for Power Purchase cost is short term in nature, the same has been shown in Note
no.10 under Short Term Provisions. Accordingly last year’s provision of Rs.53.46 Crore is also regrouped
and disclosed in Schedule No.10 under Provision for Power Purchase Cost.

Particulars As at March 31, 2021 As at March 31, 2020

` `
Principle and amount remaining unpaid 6,18,42,973 8,55,95,953
Interest Due thereon - -
Interest paid by the company in terms of
Section 16 of Micro, Small and Medium
Enterprises Development Act, 2006, along with
the amount of the payment made to the supplier
beyond the appointed day during the year. - -
Interest due and payable for the period of delay
in making payment (which have been paid but
beyond the appointed day during the year)
but without adding the interest specified under
Micro, Small and Medium Enterprises
Development Act, 2006. - -
Interest accrued and remaining unpaid - -
Further Interest remaining due and payable even
in the succeeding years, until such date when
the interest dues as above are actually paid to
the small enterprise. - -

9 Other Current Liabilities

Particulars As at March 31, 2021 As at March 31, 2020
` `
Current maturities of long-term debt 25,97,28,78,213 11,75,57,59,891
Employee related liabilities 1,57,18,00,629 1,57,46,99,871
Statutory Liability 4,05,33,03,800 2,29,01,49,041
Advance from Customers 78,25,09,810 64,54,70,301
Consumer Deposits 37,41,47,47,178 35,02,66,99,209
Gov. of AP SC/ST Payable 3,47,35,553 3,47,35,553
Inter Unit Accounts 8,85,11,972 14,70,35,738
Interest Payable on Consumer Deposit 1,42,98,07,943 1,70,62,72,048
Interest Accrued and due 3,44,87,73,331 2,54,58,51,400
Other Liabilities 11,51,46,82,260 11,52,93,73,784
Artisans Salaries Payable 23,36,99,958 21,30,30,640
GST Liabilities 7,91,08,816 22,99,85,960
TOTAL 86,62,45,59,463 67,69,90,63,436

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Statement showing the Current Maturities of Long Term Debts

Lender No. NAME OF LENDOR 31.03.2021 31.03.2020

11007 RURAL ELECTRICAL CORPORATION 2,29,24,30,860 1,37,82,71,125
11240 UNION BANK OF INDIA 36,38,588 36,38,588
11241 BANK OF INDIA 25,17,284 25,17,284
11242 CENTRAL BANK OF INDIA 19,31,407 19,31,407
11243 THE FEDERAL BANK 5,45,252 5,45,252
11244 INDIAN OVERSEAS BANK 19,73,326 19,73,326
11245 INDIAN BANK 26,06,392 25,55,240
11246 PUNJAB & SINDH BANK 14,72,499 14,72,499
11247 BANK OF BARODA 20,66,719 20,66,719
11251 REC-MEDIUM TERM LOAN 2,55,00,00,000 1,92,50,00,000
11252 Loan from Govt. of Telangana - JICA Funding 12,61,40,131 -
11253 REC - 9 HRS POWER SUPPLY 34,06,72,296 19,87,25,506
11254 REC - BULK 2015-16 55,39,76,184 32,31,52,774
11255 REC - SPA:PE 2015-16 15,15,47,532 7,68,66,930
11257 PFS LIMITED 42,99,99,984 25,08,33,324
11258 PFC-IPDS Scheme 8,57,96,092 8,60,25,260
11259 REC - IE:DISTRIBUTION 2016-17 12,90,87,444 6,29,76,424
11266 IE:Distribution & Bulk (F.Y.2017-18) 25,78,67,964 -
11267 REC - SPECIAL LOAN 3,72,50,00,004 2,17,29,16,669
11268 PFC - MEDIUM TERM LOAN 5,82,38,33,988 3,31,52,77,778
11269 PFC - TERM LOAN 3,33,33,33,336 1,94,44,44,444
11271 PFC - SGPP Scheme 57,78,567 45,69,342
11275 Term Loans -IREDA 4,50,00,00,000 -
11283 Moratorium Loan - Capitalization - WC 1,65,06,62,364 -
GRAND TOTAL 25,97,28,78,213 11,75,57,59,891

a. The interest accrued and due is relating to the interest payable on bonds issued to the various trusts viz.,
APCPDCL PF Trust, AP TRANSCO PF Trust, AP GENCO PF Trust .
b. Inter Unit Accounts shows a credit balance of Rs.8.85 Crore (Previous Year - Rs. 14.70 Crore).
c. Other Liabilities includes an amount of Rs.773.74 Crore (Previous Year 771.22 Crore) from
TSTRANSCO which was taken on emergency basis and Unspent Specific Grant of Rs.5.24 Crore which
was shown in Current maturities of long-term debt in 2019-20 for Rs.15.34 Crore.

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10 Short Term Provisions

Particulars As at March 31, 2021 As at March 31, 2020
` `
Provision for Employee cost 29,62,10,165 28,89,84,676
RPF Fund 64,506 64,506
Provision for Admin Expenses 14,02,11,317 16,03,23,324
Provision for CWIP 82,18,502 4,47,90,532
Provision for Interest 2,69,83,08,052 2,91,95,28,600
Provision for O&M works 1,51,28,211 1,39,15,992
Provision for R & C Penalties 10,21,595 10,21,595
Provision for Power Purchase Cost 53,82,73,311 53,45,51,568
Gratuity (unfunded) 84,31,097 6,21,27,850
Leave Encashment (unfunded) 54,10,26,940 1,11,56,48,130
TSSPDCL Pension & Gratuity Trust - 80,39,24,674
TOTAL 4,24,68,93,696 5,94,48,81,447

It is to state that Provision for Interest includes interest payable on FRP bonds Rs.100.87 Crore, Working
Capital Loans Rs.30.37 Crore, Japan International Cooperation Agency (JICA) loan Rs.2.11 Crore and PFC
loan Rs. 2.47 Crore.

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Note No.11 - Property Plant and Equipment

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Annual Report
Annual

Gross Carrying Values Depreciation & Amortisation Net Carrying Values

Report

Acquired Additions
As at 1st April, Deletions/ As at 31st March As at 1st April Depreciation Deletions/
S.No. Particulars Additions through through As at 31st As at 31st March As at 31st
2020 Adjustments 2021 2020 charge for the Adjustments
business business March 2021 2021 March 2020
year
Combinations combinations

116
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` ` ` ` ` ` ` ` ` ` ` `

a TANGIBLE ASSETS

Land 8,63,51,009 - 8,63,51,009 - - - 8,63,51,009 8,63,51,009

Buildings 3,26,55,54,508 21,84,42,937 3,48,39,97,445 85,84,20,937 10,09,77,654 95,93,98,591 2,52,45,98,854 2,40,71,33,571

Other Civil Works 1,88,05,08,313 9,17,80,358 1,97,22,88,671 25,17,30,784 5,81,78,655 30,99,09,439 1,66,23,79,232 1,62,87,77,529
TSSPDCL

Plant and Machinery 74,41,48,95,088 4,02,16,50,712 74,60,243.86 78,42,90,85,556 33,98,28,36,741 4,84,24,56,371 47,71,488 38,82,05,21,624 39,60,85,63,932 40,43,20,58,347

Lines and Cable Network 67,31,89,76,132 6,11,97,23,763 73,43,86,99,895 28,79,00,51,433 4,30,44,74,353 33,09,45,25,786 40,34,41,74,109 38,52,89,24,699

Meters and Metering equipment 14,53,14,01,621 1,42,68,64,279 1,73,25,758.61 15,94,09,40,141 8,70,76,15,774 1,18,13,66,537 1,47,97,066 9,87,41,85,245 6,06,67,54,896 5,82,37,85,847

Vehicles 7,08,84,833 - 1,04,826.00 7,07,80,007 6,35,80,438 1,76,196 94,343 6,36,62,291 71,17,716 73,04,395

Furniture and Fixtures 14,34,96,100 84,30,495 15,19,26,595 8,87,60,774 1,02,20,089 9,89,80,863 5,29,45,732 5,47,35,326

Office Equipment 42,18,45,801 1,75,84,948 43,94,30,749 24,20,82,124 3,35,16,144 27,55,98,268 16,38,32,481 17,97,63,677

Air Conditioners 2,13,29,258 7,29,318 2,20,58,576 1,41,52,321 11,00,364 1,52,52,685 68,05,891 71,76,937

Computer & IT Equipment 1,57,58,87,873 7,42,26,825 1,65,01,14,698 99,56,51,886 11,65,07,964 1,11,21,59,850 53,79,54,848 58,02,35,987

Sub Total 1,63,73,11,30,536 11,97,94,33,634 2,48,90,828 - 1,75,68,56,73,342 73,99,48,83,212 10,64,89,74,328 1,96,62,898 - 84,62,41,94,642 91,06,14,78,700 89,73,62,47,324

b INTANGIBLE ASSETS

Computer Software 44,25,65,006 - 44,25,65,006 39,83,79,449 1,68,35,203 41,52,14,652 2,73,50,354 4,41,85,557

Sub Total 44,25,65,006 - - - 44,25,65,006 39,83,79,449 1,68,35,203 - - 41,52,14,652 2,73,50,354 4,41,85,557

c Capital Work in Progress 10,26,41,39,504 12,44,05,93,769 12,33,70,46,531 10,36,76,86,742 - - - 10,36,76,86,742 10,26,41,39,504

Sub Total 10,26,41,39,504 12,44,05,93,769 12,33,70,46,531 - 10,36,76,86,742 - - - - - 10,36,76,86,742 10,26,41,39,504

d GRAND TOTAL (a+b+c) 1,74,43,78,35,046 24,42,00,27,403 12,36,19,37,359 - 1,86,49,59,25,090 74,39,32,62,661 10,66,58,09,531 1,96,62,898 - 85,03,94,09,294 1,01,45,65,15,796 1,00,04,45,72,385

Grand Total of Previous Year 1,58,21,84,15,670 38,34,37,62,834 22,33,38,03,192 20,94,59,734 1,74,43,78,35,046 64,52,21,89,780 9,86,56,00,467 9,87,80,876 10,42,53,290 74,39,32,62,661 1,00,04,45,72,385 93,69,62,25,890
 Note No. 12 Non Current Investments (At Cost)

A. Details of Trade Investments

Subsidiary / Associate / No. of Shares / Units Amount ( `)
Quoted / Partly Paid /
S. No. Name of the Body Corporate JV/ Controlled Entity / As at 31st March As at 31st March
Unquoted Fully paid
Others 2021 2020 As at 31st March 2021 As at 31st March 2020

(1) (2) (3) (4) (5) (6) (7) (8) (9)

a) Andhra Pradesh Power Development Company Ltd. (APPDCL) Others 42,60,10,000 42,60,10,000 Unquoted Fully Paid 4,26,01,00,000 4,26,01,00,000
Total 4,26,01,00,000 4,26,01,00,000

B. Details of Other Investments

Subsidiary / Associate / No. of Shares / Units Amount ( `)
Quoted / Partly Paid /
S.No. Name of the Body Corporate JV/ Controlled Entity / As at 31st March As at 31st March
Unquoted Fully paid
Others 2021 2020 As at 31st March 2021 As at 31st March 2020

1 Investments in Government or Trust securities

200021 AP TRANSCO - VIDYUT BONDS Others 132 132 Quoted Fully Paid 13,20,00,000 13,20,00,000
(Face Value Rs.10,00,000/- per Bond)
200013 8.74% APPFC Bonds (Face Value Rs.10,00,000/- per Bond) Others 47 47 Quoted Fully Paid 4,70,00,000 4,70,00,000
200013 9.97% APPFC Bonds (Face Value Rs.10,00,000/- per Bond) Others 24 24 Quoted Fully Paid 2,40,00,000 2,40,00,000
200013 9.64% APPFC Bonds (Face Value Rs.10,00,000/- per Bond) Others 22 22 Quoted Fully Paid 2,20,00,000 2,20,00,000
200011 5.64% Govt of India Securities Others 200000 200000 Unquoted Fully Paid - -
200014 8.35% Govt of India Securities Others 172000 172000 Unquoted Fully Paid 1,72,00,000 1,72,00,000
200030 9.15% APSFC - Unsecured, Redeemable, Others 14 14 Unquoted Fully Paid 56,00,000 84,00,000
TSSPDCL

Non Convertible, Non SLR Bonds Series VI-2013

(Face Value Rs.10,00,000/- per Bond)
200036 MAH SLD @ 9.25% Others 180 180 Unquoted Fully Paid 1,80,00,000 1,80,00,000
200030 APSFC SERIES VII/2014 FRO Others 9 9 Unquoted Fully Paid 54,00,000 72,00,000

117
(Face Value Rs.1,00,000/- per Bond)
200038 9.2% GOVERNMENT OF INDIA - 2030 SECURITIES Others 194 194 Unquoted Fully Paid 1,94,00,000 1,94,00,000
21st Annual

200037 8.4% GOVERNMENT OF INDIA - 2024 SECURITIES Others 190 190 Unquoted Fully Paid 1,90,00,000 1,90,00,000
Sub Total (B) 30,96,00,000 31,42,00,000
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GRAND TOTAL ( A+B) 4,56,97,00,000 4,57,43,00,000

* During the year an amount of Rs.46.00 Lakhs has matured in 9.15% APSFC - Non SLR Bonds Series VI-2013 and APSFC SERIES VII/2014 FRO.
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13 Deferred Tax
Particulars As at March 31, 2021 As at March 31, 2020
` `
Deferred Tax Liabilities
A i) Opening Balance 7,62,45,42,989 9,98,10,42,251
Less : Adjustment against Merger of Husnabad - 27,64,483
ii) Fixed Assets : Impact of difference between tax
depreciation and depreciation / amortization 6,64,92,244 (2,35,64,99,262)
charged for the financial reporting
iii) Gross deferred tax liability (i+ii) 7,69,10,35,233 7,62,45,42,989
Deferred Tax Asset
B i) Opening Balance 23,97,38,92,475 21,12,55,56,541
ii) Deferred tax asset on timing difference 3,83,29,31,078 2,84,83,35,934
iii) Gross deferred tax asset (i+ii) 27,80,68,23,553 23,97,38,92,475
iv) Net Deferred Tax Asset/ (Liability) (Biii-Aiii) 20,11,57,88,320 16,34,93,49,486
The Deferred Tax Liability assumed on merger of Husnabad is net settled and adjusted in previous year i.e. 2019-20

13 A - Deferred Tax Calculations

1. Deferred Tax Liability

Particulars As at March 31, 2021 As at March 31, 2020

` `
i) WDV as per Companies Act 2013 91,08,88,29,054 89,78,04,32,881
ii) WDV as per Income Tax Act 65,45,20,44,944 64,36,52,89,584
iii) WDV Timing Differences (i-ii) 25,63,67,84,110 25,41,51,43,297
iv) Deferred Tax Liability (iii *30%) 7,69,10,35,233 7,62,45,42,989

2. Deferred Tax Asset

Particulars As at March 31, 2021 As at March 31, 2020
` `
Deferred Tax Assets on Timing Differences
i. Unabsorbed Depreciation 64,43,27,77,917 53,56,94,10,803
ii. 43B Disallowances
a. Provision for gratuity [Sec. 43B(b)] 11,66,15,00,042 12,12,07,56,550
b. Provision for leave encashment [Sec. 43B(f)] 10,44,80,52,502 8,75,74,27,565
c. Interest [Sec. 43B(d) & (e)] 6,14,70,81,383 5,46,53,80,000
Total Timing Difference 92,68,94,11,844 79,91,29,74,918
Deferred Tax Assets 27,80,68,23,553 23,97,38,92,475

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Deferred Tax arising on carry forward of business loss has not been considered as Timing difference, since
as per the provisions of Income Tax Act business loss could not be set off after 8 Assessment Years. However,
timings difference on unabsorbed depreciation has been considered, as the same can be carried forward
without any limit.

13 B. Deferred Tax Income Calculation

Particulars As at March 31, 2021 As at March 31, 2020

` `
1. Deferred Tax Liability 7,69,10,35,233 7,62,45,42,989
2. Deferred Tax Asset 27,80,68,23,553 23,97,38,92,475
3. Net Deferred Tax Asset of Current year (2-1) 20,11,57,88,320 16,34,93,49,487
4. Net Deferred Tax Asset of Previous year 16,34,93,49,487 11,14,45,14,290
5. Deferrred Tax on account of Merger - Husnabad - 27,64,483
6. Net Deferred Tax Income credit to P&L A/c (3-(4+5)) 3,76,64,38,833 5,20,20,70,714

14 Long Term Loans & Advances

Particulars As at March 31, 2021 As at March 31, 2020

` `
a. Secured, Considered good
Loans & Advances to employees 36,15,82,686 42,41,89,560
b. Unsecured, Considered good
Loans & Advances to employees 2,99,99,123 4,15,00,973
Deposits with Courts, Telecom and Local Authorities 94,66,10,846 92,99,85,310
Capital Advances 42,42,19,434 40,56,76,358
Total 1,76,24,12,089 1,80,13,52,201

c. Secured Long Term Loans & Advances to employees includes

Particulars As at March 31,2021 As at March 31,2020
` `
Housing Loan - Secured against House 16,90,59,106 18,74,32,575
Four Wheeler Loan - Hypothecation of Four Wheeler 19,25,23,580 23,67,56,985
TOTAL 36,15,82,686 42,41,89,560

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d. Unsecured Long term Loans & Advances to employees includes

Particulars As at March 31, 2021 As at March 31, 2020

` `
Two Wheeler Loan 1,38,09,600 1,89,08,682
Computer Loans 1,41,92,024 1,92,69,530
Marriage Advance 19,97,499 33,22,761
TOTAL 2,99,99,123 4,15,00,973

e. Pending reconciliation of HR module with FICO module, the current portion of the long term loans &
advances to employees (Secured & Unsecured) is not ascertainable.

f. Unsecured Deposits Includes

Particulars As at March 31, 2021 As at March 31, 2020

` `
Court Authorities 70,22,07,223 69,01,69,625
Telephone Authorities 7,71,761 7,71,761
Deposits with Local Authorities and Resco 24,36,31,862 23,90,43,924
TOTAL 94,66,10,846 92,99,85,310

g. Deposits with Court Authorities includes Rs.63.08 Crore (Previous Year Rs.62.13 Crore) towards disputed
Entry tax and Sales tax deposited by the company with the Commercial Tax Officer as per the orders of
APSTAT and Hon’ble High Court.

15 Other Non Current Assets

Particulars As at March 31, 2021 As at March 31, 2020
` `
(a) Secured, considered good
Long Term Receivables from Employees 5,95,10,102 6,57,03,185
(b) Unsecured, considered good
Receivable from ITI, Chennai 48,60,448 47,63,344
TOTAL 6,43,70,550 7,04,66,529

a. Receivable from ITI represents 50% apprentice salaries paid by the company.
b. Long Term Receivables from Employees includes amount recoverable on account of Work Orders and
Excess Medical Bills.

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16 Inventories
Particulars As at March 31,2021 As at March 31,2020
` `
Stores and Spares 1,69,31,05,449 2,25,03,88,416
Less: Provision for Recovery/Write Off of Cost Materials 3,82,06,892 2,52,24,863
TOTAL 1,65,48,98,557 2,22,51,63,553

Provision for Obsolete Items:

As per the physical verification report for the year ended 31st March, 2021 an amount of Rs. 3,82,06,892 is
noticed as obsolete stock, but the provision for obsolete stock is available for an amount of Rs. 2,52,24,863
is existing and the Provision for Obsolete Stock is restated to Rs. 3,82,06,892.

17 Trade Receivables
Particulars As at March 31,2021 As at March 31,2020
` `
i) Trade Receivables outstanding for a period less than
six months from the date they are due for payment
Secured, considered good 12,86,05,43,312 15,51,17,08,547
Unsecured, considered good 24,15,72,10,427 8,99,95,89,467
Sub Total 37,01,77,53,739 24,51,12,98,014
ii) Trade receivables outstanding for a period exceeding
six months from the date they are due for payment
Secured, considered good 16,79,16,22,547 14,92,75,36,951
Unsecured, considered good 56,34,70,53,539 47,39,79,19,480
Unsecured, considered doubtful 7,65,94,33,073 6,15,05,88,776
Less: Provision for doubtful debts (7,65,94,33,073) (6,15,05,88,776)
Less: Provision for doubtful debts FSA (26,02,48,967) (26,02,48,967)
Sub Total 72,87,84,27,119 62,06,52,07,464
Total ( i + ii) 1,09,89,61,80,858 86,57,65,05,478

a. The above trade receivables includes, Court Cases of Rs.887.85 Crore (Previous Year Rs.685.62 Crore),
R.R.Act Cases Rs.4.57 Crore (Previous Year Rs.0.05 Crore), Bill Stopped/Disconnected Services
Rs.972.87 Crore (Previous Year Rs.794.50 Crore).
b. The Above trade receivables includes Debtors balances received on Merger of Gundala Mandal is for
an amount of Rs.0.03 Crore.

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18 Cash & Cash Equivalents

Particulars As at March 31,2021 As at March 31,2020
` `
Cash and Cash Equivalents
a. Balances with banks
In Current Accounts 2,41,78,50,306 3,03,80,44,751
Remittance in Transit 21,42,73,037 (2,52,68,615)
In Deposits with Original Maturity less than 3 Months 51,21,95,615 39,77,56,396
b. Cash on hand 21,78,58,182 8,14,24,820
TOTAL 3,36,21,77,140 3,49,19,57,352

19 Short Term Loans & Advances

Particulars As at March 31,2021 As at March 31,2020
` `
a. Secured, considered good
Recoverable from employees (Cell phone) 6,09,049 7,93,041
b. Unsecured, considered good
Loans & Advances to employees 4,86,18,048 8,46,07,510
Income Tax Refunds 3,64,58,633 4,38,00,100
Advance to O&M Suppliers 2,18,65,646 2,18,65,646
Government Receivables 53,77,20,54,297 52,72,92,56,951
Provision for Government Receivables - Additional Power (38,77,87,39,156) (38,77,87,39,156)
Other Loans & Advances 42,35,416 60,55,718
TOTAL 15,10,51,01,933 14,10,76,39,810

20 Other Current Assets

Particulars As at March 31,2021 As at March 31,2020
` `
Fixed asset retired from active use and held for disposal 6,72,296 6,72,296
Interest Accrued on Fixed Deposits 26,525 26,524
Interest Accrued on Investments 5,62,18,297 5,88,92,222
Unbilled Revenue - Trade Receivables 23,39,66,29,000 20,14,52,63,525
FSA Revenue - Receivables 5,51,36,41,199 5,51,36,41,199
TSGENCO Master P & G Trust 85,11,77,693 77,91,68,311
Receivable on Demerger of Kurnool and Anantapur 20,96,57,28,272 20,96,57,28,272
TSSPDCL GPF Trust 49,45,782 5,50,24,560
Other Receivables 66,65,06,446 1,23,39,59,001
Net Receivable on Merger - Gundala 2,19,99,272 2,19,99,272
TOTAL 51,47,75,44,782 48,77,43,75,182
TSGENCO Master P & G Trust owes to the company to the tune of Rs.85.12 Crore (Previous year Rs.77.92 Crore).

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21 Revenue From Operations

Particulars 2020-21 2019-20
(a)Sale of energy
LT Supply 73,17,18,45,260 78,03,51,87,637
HT Supply 1,17,23,15,88,419 1,26,98,40,78,968
Interstate Sales 1,91,95,06,631 12,42,76,87,801
Fuel Surcharge Adjustment 1,57,71,723 2,11,88,079
Tariff Subsidy 13,97,50,00,000 13,97,50,00,000
Revenue grant under UDAY Scheme - (3,92,48,00,000)
Customer Charges 4,56,26,99,882 4,47,16,61,193
Theft of Power 22,52,41,106 34,86,36,861
Delayed Payment Surcharge - Income 12,51,77,92,876 11,35,73,50,822
R & C Penalties (16,46,855) 84,46,768
(b) Other Operating Revenues
Amortization of Consumer Contribution, Subsidies &
Grants towards Property Plant and Equipment 3,75,44,76,223 3,43,74,32,493
Others - Wheeling, Unscheduled Interchange,
Capacitor Surcharge etc.. 14,91,92,68,673 60,38,88,008
Less: Electricity Duty (1,55,74,72,270) (1,73,70,67,288)
TOTAL 2,40,73,40,71,668 2,46,00,86,91,343

21 (a) The Tariff Subsidy is determined as the difference between the full cost recovery approved by the Hon’ble
Electricity Regulatory Commission (ERC) and the Retail Supply rates approved by the Hon’ble ERC is
treated as Subsidy to the consumers. So for the current financial year 2020-21 the Tariff Subsidy is accounted
for Rs.1397.50 Crore out of which an amount of Rs.1397.50 Crore received from Govt. of Telangana.
21 (b) (i) Depreciation on Property Plant and Equipment is provided under the ‘Straight Line Method’
up to 90% of the original cost of assets, at the rates notified by the Ministry of Power, Government of
India vide Notification No. S.O.266 (E) dated 29th March, 1994. In view of this, Management is opined
that Schedule II to the Companies Act,2013 is not mandatorily applicable to the Company. For the
ARR filing, the company is claiming depreciation as per rates notified by the Hon’ble TSERC.
ii) The Depreciation on Consumer Contributions have been withdrawn on 90 % of the values.
For the F.Y.2016-17, losses of the company is for an amount of Rs.4700.22 Crore and as per the clauses
under the UDAY scheme the Government of Telangana has sanctioned and released the funds @5% of
Losses i.e., Rs.235 Crore (Rs.4700.22*5%) and the same is accounted as Revenue grant under UDAY
scheme during the F.Y.2017-18.
For the F.Y.2017-18, losses of the company is for an amount of Rs. 3924.78 Crore and as per the clauses under
the UDAY scheme, the Government of Telangana has issued the G.O.No. 57, dated 24.08.2018 and 87, dated
20.12.2018 towards the take over of 10% of Losses 392.48 (Rs.3924.78*10%) and the same is accounted as
per the accounting policy of the company i.e., mercantile/accrual system of accounting as Revenue Grant
under UDAY scheme during the F.Y.2018-19. But the said funds sanctioned under “Investments in the Discoms”
and not been received up to the year ending of 2019-20. So the revenue recognised under “Grants Receivable
from Government under UDAY Scheme” in 2018-19 is reversed in 2019-20.

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For the F.Y.2018-19, losses of the company is for an amount of Rs.4967.27 Crore and as per the clauses
under the UDAY scheme, the Government of Telangana has issued the G.O.No. 13, dated 08.08.2019 towards
the take over of 25% of Losses 1241.81 (Rs.4967.27*25%). Since the pending receipt of funds, the same has
not been accounted during the F.Y.2019-20.
For the F.Y.2019-20, losses of the company is for an amount of Rs.4940.25 Crore and as per the clauses
under the UDAY scheme, the Government of Telangana has issued the G.O.No. 15, dated 16.11.2020 towards
the take over of 50% of Losses 2470.13 (Rs.4940.25*50%). Since the pending receipt of funds, the same has
not been accounted during the F.Y.2020-21.

22 Other Income
Particulars 2020-21 2019-20
` `
Interest Income
Bank 8,17,51,222 7,50,12,681
Staff 58,59,317 43,82,237
Others 5,65,93,489 8,04,29,841
Rent from Company’s Property Plant and Equipment 44,26,671 34,27,546
Sale of Scrap 4,45,36,400 1,90,72,117
Penalties from Suppliers 3,65,05,382 5,78,02,699
Other Income 47,63,68,051 22,77,18,704
TOTAL 70,60,40,532 46,78,45,825

a. As per the Company’s Policy, interest on loans given to employees is recovered after repayment of the
principal loan amount.
b. Other Income includes prior period CC Charges of Rs. (-) 4.57 Crores, income in respect of Incidental
charges for an amount of Rs. 44.68 Crores and forfeiture of Bank Guarantees of Rs. 1.33 Crores.

23 Power Purchase Cost

Particulars 2020-21 2019-20
` `
Purchase of Power - Fixed Cost 80,35,47,46,558 76,05,42,85,615
Purchase of Power - Variable Cost 1,36,62,47,07,751 1,43,16,75,11,812
Transmission Charges 25,65,35,73,271 19,93,99,31,388
Other Power Purchase Costs (5,60,24,02,162) 9,91,08,72,297
TOTAL 2,37,03,06,25,418 2,49,07,26,01,112

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24 Employee Benefit Expense

Particulars 2020-21 2019-20
` `
Salaries and incentives 13,47,98,23,522 13,00,86,50,903
Artisans Remuneration 3,02,92,27,427 3,13,27,78,689
Contributions to Employees Provident Fund 1952 68,57,14,298 59,85,25,443
Artisans EPF and ESI Contributions 19,99,55,078 22,59,62,320
Pension Benefits 5,42,68,37,341 6,82,52,80,969
Director’s Remuneration & Allowances 2,60,89,421 2,45,68,301
Director’s Sitting Fees 1,01,800 1,06,890
Staff welfare expenses 25,87,21,564 22,36,53,350
Less: Employee Cost Capitalised (69,87,66,477) (89,51,38,324)
TOTAL 22,40,77,03,974 23,14,43,88,541

The Company is making the Provision for Pension & Gratuity in respect of employees who were on rolls as
on 31.01.1999 and retired thereafter in the ratio of 26 % and providing the balance 74 % is the responsibility
of the TSGENCO Master Trust. Accordingly, the TSSPDCL is making the payment of 74 % Pension &
Gratuity and claiming the reimbursement of same on monthly basis from the TSGENCO Master Trust and
the TS GENCO Master Trust is reimbursing the same and as such the Provision of maintaining 74 % of
Pension & Liability is not required to provide in the books of accounts.

Disclosures for the DISCOM P & G Trust

(Employees recruited prior to 01.02.1999 and on roll as on 31.03.2021)

Annexure 1: Funded status of the plan

Particulars As at March 31,2021 As at March 31,2020
` `
Present value of unfunded obligations - -
Present value of funded obligations 27,99,34,14,674 25,60,76,11,977
Fair value of plan assets 16,48,04,91,456 13,53,57,46,367
Net Liability (Asset) 11,51,29,23,218 12,07,18,65,610

Annexure 2: Profit and loss account for current period

Particulars As at March 31,2021 As at March 31,2020
` `
Current service cost 69,81,70,358 13,39,47,559
Interest on obligation 1,64,16,52,661 1,78,89,29,375
Expected return on plan assets (99,72,23,649) (78,15,95,851)
Net actuarial loss/(gain) 3,13,22,17,632 1,95,37,52,047
Contributions to the Fund 1,75,00,00,000 -

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Past service cost - (38,59,01,286)

Adjustment to the Opening Fund - -
Loss/(gain) on curtailments and settlement -
Total included in ‘Employee Benefit Expense’ 2,72,48,17,002 2,70,91,31,844
Expenses deducted from the fund
Total Charge to P&L 2,72,48,17,002 2,70,91,31,844
Loss/(Gain) on obligation as per Annexure 3 3,32,97,39,073 1,99,37,46,627
Loss/(Gain) on assets as per Annexure 4 (19,75,21,440) (3,99,94,577)
Net actuarial Loss/(Gain) 3,13,22,17,632 1,95,37,52,047

Annexure 3: Reconciliation of defined benefit obligation

Particulars As at March 31,2021 As at March 31,2020
` `
Opening Defined Benefit Obligation 25,60,76,11,977 23,38,46,97,709
Current service cost 69,81,70,358 13,39,47,559
Interest cost 1,64,16,52,661 1,78,89,29,375
Actuarial loss (gain) 3,32,97,39,073 1,99,37,46,624
Past service cost - (38,59,01,286)
Loss (gain) on curtailments
Liabilities extinguished on settlements
Liabilities assumed in an amalgamation in the nature of purchase
Exchange differences on foreign plans
Benefits paid (3,28,37,59,395) (1,30,78,08,004)
Benefits payable
Closing Defined Benefit Obligation 27,99,34,14,674 25,60,76,11,977

Annexure 4: Reconciliation of plan assets

Particulars As at March 31,2021 As at March 31,2020
` `
Opening value of plan assets 13,53,57,46,367 10,28,41,55,939
Transfer in/(out) plan assets
Expenses deducted from the fund
Expected return 99,72,23,649 78,15,95,851
Actuarial gain and (loss) 5,03,37,59,395 3,99,94,577
Assets distributed on settlements
Contributions by employer 19,75,21,440 2,43,00,00,000
Assets acquired in an amalgamation in the nature of purchase
Exchange differences on foreign plans
Benefits paid (3,28,37,59,395)
Adjustment to the Opening Fund
Closing value of plan assets 16,48,04,91,456 13,53,57,46,367

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Annexure 5: Reconciliation of net defined benefit liability

Particulars As at March 31,2021 As at March 31,2020
` `
Net opening provision in books of accounts 12,07,18,65,610 13,10,05,41,770
To be Transferred in/(out) obligation in respect of
pensioners & Family pensioners of Unit code: 9100
Transfer in/(out) plan assets
Employee benefit expense as per Annexure 2 2,72,48,17,002 2,70,91,31,844
Sub- Total 14,79,66,82,612 15,80,96,73,614
Benefits paid by the Company (3,28,37,59,395) (1,30,78,08,004)
Amounts transferred to ‘payable account’
Contributions to plan assets 19,75,21,440 (2,43,00,00,000)
Closing provision in books of accounts 11,51,29,23,218 12,07,18,65,610

Annexure 6: Composition of the plan assets

Particulars As at March 31,2021 As at March 31,2020
% %
Government of India Securities - -
State Government Securities - -
High quality corporate bonds - -
Equity shares of listed companies - -
Property - -
Special Deposit Scheme - -
Policy of insurance 100% 100%
Bank Balance - -
Other Investments - -
TOTAL 100% 100%

Annexure 7: Bifurcation of liability as per schedule III

Particulars As at March 31,2021 As at March 31,2020
` `
Current Liability* - 80,39,24,674
Non-Current Liability 11,51,29,23,218 11,26,79,40,936
Net Liability 11,51,29,23,218 12,07,18,65,610

* The current liability is calculated as expected contributions for the next 12 months.

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Annexure 8: Table of experience adjustments

Particulars As at March 31,2021 As at March 31,2020

` `
Defined Benefit Obligation 27,99,34,14,674 25,60,76,11,977
Plan Assets 16,48,04,91,456 13,53,57,46,367
Surplus/(Deficit) (11,51,29,23,218) (12,07,18,65,610)
Experience adjustments on plan liabilities 2,92,22,38,739 (33,40,34,358)
Actuarial loss/ (gain) due to change in
demographic assumption (9,85,50,177) (15,04,02,744)
Actuarial loss/(gain) due to change in
financial assumptions (91,77,423) 2,47,81,83,726
Experience adjustments on plan assets (19,75,21,440) (3,99,94,577)
Net actuarial loss/ (gain) for the year 2,61,69,89,699 1,95,37,52,047

Annexure 9: Principle Actuarial Assumptions

Particulars As at March 31,2021 As at March 31,2020
Discount Rate for Gratuity and Pension 6.91% - Gratuity 6.85 %
& 6.41%
Expected Return on Plan Assets Not available 7.60 %
Salary Growth Rate 9.00% 9.00%
Pension Growth Rate 4.00% 4.00%

Earned Leave Encashment for all Employees on roll as on 31.03.2021

Annexure 1: Funded status of the plan

Particulars As at March 31,2021 As at March 31,2020
Present value of unfunded obligations 10,48,46,54,335 9,13,99,24,598
Present value of funded obligations
Fair value of plan assets
Net Liability (Asset) 10,48,46,54,335 9,13,99,24,598

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Annexure 2: Profit and loss account for current period

Particulars As at March 31,2021 As at March 31,2020
Current service cost 30,68,20,778 41,64,61,186
Interest on obligation 60,57,04,214 62,21,92,417
Expected return on plan assets - -
Net actuarial loss/(gain) 1,02,72,59,383 (17,26,97,007)
Past service cost
Losses/(gains) on curtailments and settlement
Total included in ‘Employee Benefit Expense’ 1,93,97,84,374 86,59,56,596
Expenses deducted from the fund
Total Charge to P&L 1,93,97,84,374 86,59,56,596
Loss/(Gain) on obligation as per annexure 3 (17,26,97,007)
Loss/(Gain) on assets as per annexure 4 -
Net actuarial Loss/(Gain) (17,26,97,007)
Annexure 3: Reconciliation of defined benefit obligation
Particulars As at March 31,2021 As at March 31,2020
Opening Defined Benefit Obligation 9,13,99,24,598 8,71,84,79,966
Transfer in/(out) obligation - -
Current service cost 30,68,20,778 41,64,61,186
Interest cost 60,57,04,214 62,21,92,417
Actuarial losses/ (gains) 1,02,72,59,383 (17,26,97,007)
Past service cost - -
Losses (gains) on curtailments - -
Liabilities extinguished on settlements - -
Liabilities assumed in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits Paid 59,50,54,637 (44,45,11,964)
Closing Defined Benefit Obligation 10,48,46,54,336 9,13,99,24,598
* Actuarial loss/ (gain) has been adjusted to the extent of leave availed during the year.
Annexure 4: Reconciliation of plan assets
Particulars As at March 31,2021 As at March 31,2020
Opening value of plan assets - -
Transfer in/(out) plan assets - -
Expenses incurred in the fund - -
Expected return - -
Actuarial gains and (losses) - -
Assets distributed on settlements - -
Contributions by employer - -
Assets acquired in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits paid - -
Closing Value of Plan Assets - -

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Annexure 5: Reconciliation of net defined benefit liability

Particulars As at March 31,2021 As at March 31,2020
Net opening provision in books of accounts 9,13,99,24,598 8,71,84,79,966
Transfer in/(out) obligation - -
Transfer (in)/out plan assets - -
Employee benefit expense as per annexure 2 1,93,97,84,374 86,59,56,596
11,07,97,08,972 9,58,44,36,562
Benefits paid by the company (59,50,54,637) (44,45,11,964)
Contributions to plan assets - -
Closing provision in books of accounts 10,48,46,54,335 9,13,99,24,598

Annexure 6: Composition of the plan assets

Particulars As at March 31,2021 As at March 31,2020

Government of India Securities - -
State Government Securities - -
High quality corporate bonds - -
Equity shares of listed companies - -
Property - -
Special Deposit Scheme - -
Policy of insurance - -
Bank Balance - -
Other Investments - -
TOTAL - -

Annexure 7: Bifurcation of liability as per schedule III

Particulars As at March 31,2021 As at March 31,2020

Current Liability* 54,10,26,940 1,11,56,48,130

Non-Current Liability 9,94,36,27,396 8,02,42,76,468
Net Liability 10,48,46,54,336 9,13,99,24,598
* The current liability is calculated as expected benefits for the next 12 months.

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Annexure 8: Table of experience adjustments

Particulars As at March 31,2021 As at March 31,2020

Defined Benefit Obligation 10,48,46,54,335 9,13,99,24,598

Plan Assets - -
Surplus/(Deficit) (10,48,46,54,335) (9,13,99,24,598)
Experience adjustments on plan liabilities 91,40,22,757 (72,42,36,209)
Actuarial loss/(gain) due to change in
financial assumptions (6,16,34,649) 54,99,40,854
Actuarial loss/ (gain) due to change in
demographic assumption 17,48,71,274 15,98,348
Experience adjustments on plan assets
Net actuarial loss/ (gain) for the year 1,02,72,59,383 (17,26,97,007)

Annexure 9: Principle Actuarial Assumptions

Particulars As at March 31,2021 As at March 31,2020

Discount Rate 6.91% 6.85%

Expected Return on Plan Assets Not Applicable Not Applicable
Salary Growth Rate 9.00% 9.00%
Withdrawal Rates 0% 1% at younger ages
reducing to 0% at older ages
Leave Availment Rate 5% p.a. 5% p.a.
Leave Encashment Rate 0% p.a. 0% p.a.

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Gratuity for Employees Recruited after 01.02.1999

Annexure 1: Funded status of the plan
Particulars As at March 31,2021 As at March 31,2020
Present value of unfunded obligations 1,73,17,84,501 1,56,20,14,576
Present value of funded obligations
Fair value of plan assets
Net Liability (Asset) 1,73,17,84,501 1,56,20,14,576

Annexure 2: Profit and loss account for current period

Particulars As at March 31,2021 As at March 31,2020
Current service cost 3,52,40,609 11,63,68,025
Interest on obligation 10,55,37,436 8,96,87,542
Expected return on plan assets - -
Net actuarial loss/(gain) 7,16,36,030 19,75,78,058
Recognised Past Service Cost - -
Recognised Past Service Cost-Unvested - -
Loss/(gain) on curtailments and settlement - -
Total included in ‘Employee Benefit Expense’ 21,24,14,075 40,36,33,625
Expenses deducted from the fund
Total Charge to P&L
Loss/(gain) on obligation as per Annexure 3 7,16,36,030 19,75,78,058
Loss/(gain) on assets as per Annexure 4 - -
Net actuarial loss/(gain) 7,16,36,030 19,75,78,058

Annexure 3: Reconciliation of defined benefit obligation

Particulars As at March 31,2021 As at March 31,2020
Opening Defined Benefit Obligation 1,56,20,14,576 1,19,81,42,412
Transfer in/(out) obligation - -
Current service cost 3,52,40,609 11,63,68,025
Interest cost 10,55,37,436 8,96,87,542
Actuarial loss (gain) 7,16,36,030 19,75,78,058
Past service cost - -
Loss (gain) on curtailments - -
Liabilities extinguished on settlements - -
Liabilities assumed in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits paid - (3,97,61,461)
Closing Defined Benefit Obligation 1,73,17,84,501 1,56,20,14,576

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Annexure 4: Reconciliation of plan assets

Particulars As at March 31,2021 As at March 31,2020
Opening value of plan assets - -
Transfer in/(out) plan assets - -
Expenses deducted from the fund - -
Expected return - -
Actuarial gain/(loss) - -
Assets distributed on settlements - -
Contributions by employer - -
Assets acquired in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits paid - -
Closing value of plan assets - -

Annexure 5: Reconciliation of net defined benefit liability

Particulars As at March 31,2021 As at March 31,2020
Net opening provision in books of accounts 1,56,20,14,576 1,19,81,42,412
Transfer in/(out) obligation - -
Transfer (in)/out plan assets - -
Employee Benefit Expense as per Annexure 2 21,24,14,075 40,36,33,625
1,73,17,84,501 1,60,17,76,037
Benefits paid by the Company - (3,97,61,461)
Contributions to plan assets - -
Closing provision in books of accounts 1,73,17,84,501 1,56,20,14,576

Annexure 6: Composition of the plan assets

Particulars As at March 31,2021 As at March 31,2020
% %
Government of India Securities - -
State Government Securities - -
High quality corporate bonds - -
Equity shares of listed companies - -
Property - -
Special Deposit Scheme - -
Policy of insurance - -
Bank Balance - -
Other Investments - -
TOTAL - -

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Annexure 7: Bifurcation of liability as per schedule III

Particulars As at March 31,2021 As at March 31,2020
Current Liability* 79,28,746 6,21,27,850
Non-Current Liability 1,72,38,55,755 1,49,98,86,726
Net Liability 1,73,17,84,501 1,56,20,14,576
* The current liability is calculated as expected benefits for the next 12 months.

Annexure 8: Table of experience adjustments

Particulars As at March 31,2021 As at March 31,2020

Defined Benefit Obligation 1,73,17,84,501 1,56,20,14,576

Plan Assets - -
Surplus/(Deficit) (1,73,17,84,501) (1,56,20,14,576)
Experience adjustments on plan liabilities 22,71,70,132 6,81,15,958
Actuarial loss/(gain) due to change in
financial assumptions (1,84,00,507) 13,32,04,993
Actuarial loss/ (gain) due to change in
demographic assumption (13,71,33,595) (37,42,893)
Experience adjustments on plan assets - -
Net actuarial loss/ (gain) for the year 7,16,36,030 19,75,78,058

Annexure 9: Principle actuarial assumptions

Particulars As at March 31,2021 As at March 31,2020
Discount Rate 0 6.85%
Expected Return on Plan Assets Not Applicable Not Applicable
Salary Growth Rate 9.00% 9.00%
Withdrawal Rates 0% 1% at younger ages reducing
to 2% at older ages

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Gratuity for Artisans Recruited after 01.02.1999

Annexure 1: Funded status of the plan
Particulars As at March 31,2021 As at March 31,2020
Present value of unfunded obligations 42,03,20,546 -
Present value of funded obligations - -
Fair value of plan assets - -
Net Liability (Asset) 42,03,20,546 -

Annexure 2: Profit and loss account for current period

Particulars As at March 31,2021 As at March 31,2020
Current service cost 10,53,07,158 -
Interest on obligation - -
Expected return on plan assets - -
Net actuarial loss/(gain) - -
Recognised Past Service Cost 31,50,13,388 -
Recognised Past Service Cost-Unvested - -
Loss/(gain) on curtailments and settlement - -
Total included in ‘Employee Benefit Expense’ - -
Expenses deducted from the fund
Total Charge to P&L 42,03,20,546
Loss/(gain) on obligation as per Annexure 3 - -
Loss/(gain) on assets as per Annexure 4 - -
Net actuarial loss/(gain) 42,03,20,546 -

Annexure 3: Reconciliation of defined benefit obligation

Particulars As at March 31,2021 As at March 31,2020
Opening Defined Benefit Obligation - -
Transfer in/(out) obligation - -
Current service cost 10,53,07,158 -
Interest cost - -
Actuarial loss (gain) - -
Past service cost 31,50,13,388 -
Loss (gain) on curtailments - -
Liabilities extinguished on settlements - -
Liabilities assumed in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits paid - -
Closing Defined Benefit Obligation 42,03,20,546 -

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Annexure 4: Reconciliation of plan assets

Particulars As at March 31,2021 As at March 31,2020
Opening value of plan assets - -
Transfer in/(out) plan assets - -
Expenses deducted from the fund - -
Expected return - -
Actuarial gain/(loss) - -
Assets distributed on settlements - -
Contributions by employer - -
Assets acquired in an amalgamation in the nature of purchase - -
Exchange differences on foreign plans - -
Benefits paid - -
Closing value of plan assets - -

Annexure 5: Reconciliation of net defined benefit liability

Particulars As at March 31,2021 As at March 31,2020
Net opening provision in books of accounts - -
Transfer in/(out) obligation - -
Transfer (in)/out plan assets - -
Employee Benefit Expense as per Annexure 2 42,03,20,546 -
- -
Benefits paid by the Company - -
Contributions to plan assets - -
Closing provision in books of accounts 42,03,20,546 -

Annexure 6: Composition of the plan assets

Particulars As at March 31,2021 As at March 31,2020
% %
Government of India Securities - -
State Government Securities - -
High quality corporate bonds - -
Equity shares of listed companies - -
Property - -
Special Deposit Scheme - -
Policy of insurance - -
Bank Balance - -
Other Investments - -
TOTAL - -

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Annexure 7: Bifurcation of liability as per schedule III

Particulars As at March 31,2021 As at March 31,2020

Current Liability* 5,02,351 -

Non-Current Liability 41,98,18,195 -
Net Liability 42,03,20,546 -
* The current liability is calculated as expected benefits for the next 12 months.

Annexure 8: Table of experience adjustments

Particulars As at March 31,2021 As at March 31,2020

Defined Benefit Obligation 42,03,20,546 -

Plan Assets - -
Surplus/(Deficit) (42,03,20,546) -
Experience adjustments on plan liabilities - -
Actuarial loss/(gain) due to change in
financial assumptions - -
Actuarial loss/ (gain) due to change in
demographic assumption - -
Experience adjustments on plan assets - -
Net actuarial loss/ (gain) for the year 42,03,20,546 -

Annexure 9: Principle actuarial assumptions

Particulars As at March 31,2021 As at March 31,2020
Discount Rate 6.91% -
Expected Return on Plan Assets Not Applicable -
Salary Growth Rate 9.00% -
Withdrawal Rates 0% -

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25 Operation & Other Expenses

Particulars 2020-21 2019-20

` `
Advertisement 45,58,137 1,75,69,117
Consultancy Charges 3,50,99,970 5,93,85,467
Contract Labour Charges 16,11,19,042 13,18,80,313
Electricity Charges 7,65,70,782 8,19,06,836
Insurance 21,88,383 4,04,141
Inventories Handling Charges 67,86,396 1,67,87,782
Legal Charges 1,76,64,308 1,91,38,010
License fees - TSERC 5,93,20,710 5,93,20,710
Office Maintenance 1,65,57,552 1,45,97,945
Other Expenses 10,50,32,311 10,35,13,474
Postage & Telegrams 12,51,470 17,36,330
Printing & Stationery 4,76,28,501 6,75,57,033
Professional Charges 28,64,04,938 31,31,50,213
R&M - Others 5,35,74,370 6,67,87,591
Rates & taxes 3,62,71,305 4,81,10,159
Rent 37,54,016 43,88,406
Repairs to Buildings & Civil works 5,44,29,924 4,36,02,073
Repairs to Plant and Machinery 1,34,29,90,536 1,01,13,59,084
Repairs to Vehicles 2,26,13,328 2,71,98,217
Telephone & Communication 6,31,59,209 4,58,46,133
Training Exp 18,01,550 17,69,550
Travelling Expense 17,65,03,200 20,11,64,301
Vehicle Hire charges 39,56,72,665 38,12,58,092
Vidyut Ombudsman Exp 52,20,500 51,93,092
Payments to the auditor 16,35,480 16,35,480
Office Maintenance Tea Snacks 1,00,19,228 1,75,23,861
Office Maintenance Other expenses 1,88,45,739 3,11,67,024
Office Maintenance Cleaning expenses 7,89,809 3,11,110
Less: Administration & General Exp Capitalised (12,27,12,880) (15,74,78,052)
TOTAL 2,88,47,50,479 2,61,67,83,492
Payments to the Auditor includes an amount of Rs.1.20 Lakhs towards out of pocket expenses and GST
there on.

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26 Finance Costs
Particulars 2020-21 2019-20
` `
Interest expense
Long Term Loans 4,61,06,38,775 3,27,85,29,954
Short Term Loans 10,65,57,27,838 7,45,90,19,425
Consumption Deposits 1,48,06,02,278 1,69,34,83,052
Others
On FRP Bonds 1,52,83,22,475 2,01,73,50,000
On Other Liabilities 41,01,309 36,55,784
Bank Charges 88,79,13,185 60,45,71,747
Less: Interest Capitalised (11,26,76,964) (16,15,35,555)
TOTAL 19,05,46,28,896 14,89,50,74,407

27 Exceptional Items

Particulars 2020-21 2019-20

` `

Assets Scrapped 52,27,930 2,25,82,815

Provision for Bad Debts 1,50,88,19,027 1,30,24,76,535
Compensation Paid to Electrical Accidents 11,52,74,805 13,50,06,615
Others (2,39,72,946) (1,37,36,834)
Price Variation 1,52,406 4,03,15,442
Prior Period Items (5,98,28,77,292) -
TOTAL (4,37,73,76,070) 1,48,66,44,573

The payment of Interest of Rs.598.29 Crore against loans transferred to APSPDCL on account of bifurcation
of Anantapur and Kurnol from 2014-15 to 2019-20 is transferred as receivables from APSPDCL and shown
in prior period items.

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28 Contingent Liabilities (to the extent not provided in the books)

Particulars As at March 31,2021 As at March 31,2020
(Rs. in crore) (Rs. in crore)
(i) Contingent Liabilities
(a) Entry Tax 207.70 203.78
(b) Sales tax Penalty against G Form (Cement purchases) 1.34 1.34
(c) Liability under AP VAT Act 2005 (April 2005
to 2009-10) 86.92 86.92
(d) Income Tax (TDS) 93.25 93.25
(e) Service Tax 206.26 195.00
(f) Employee Provident Fund 14.30 0.00
Sub Total (i) 609.77 580.29
(ii) Commitments
(a) Estimated amount of contracts remaining to be
executed on capital account and not provided for 304.21 195.40
Sub Total (ii) 304.21 195.40
GRAND TOTAL (i+ii) 913.98 775.69

29. The Entry Tax demand is amounting to 286.68 Crore was raised by the Commercial Tax Department
and the same was challenged before the Hon’ble High Court of Telangana. As per the directions of the
Court, 25 % of Disputed Tax was deposited under protest with the tax Authorities and the same was not
charged to the Profit and Loss account.
30. Income-tax assessments for the Assessment Year 2019-20 is pending. There is a dispute on TDS deduction
under section 194C vs 194J for the assessment year 2007-08, in the Hon’ble High Court of Telangana
and for the A.Y. 2008-09 and 2009-10 at the Hon’ble Supreme Court of India and all the disputed
amount put together is for Rs. 93.25 Crore and the Company is of the opinion that no provision is
necessary in respect of disputed amounts and the case status as on date is pending in the respective
Courts. Any further provision required in respect of disputed addition will be considered on completion
of Appellate Proceedings.
31. The Director General of GST Intelligence, Hyderabad zonal unit has raised the Service Tax demand for
Rs.97.26 Crore and the penalty for an amount of Rs.97.26 Crore and aggrieved by the order, the TSSPDCL
has preferred appeal before the Hon’ble High Court of Telangana and the case is still pending in the
Court. Further an amount of Rs.12.68 Crore raised against 2012-13 to 2015-16 out of which Rs.0.95
Crore deposited and petetion filed in Customs Excise and Service Tax Tribunal (CESTAT).
32. An amount of Rs.14.30 Crore was raised by the EPFO towards Employee Provident Fund for the periods
from April, 2014 to August, 2018 and the same was challenged before the Hon’ble High Court of
Telangana.

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33. APTRANSCO claimed Transmission Charges, SLDC Operating Charges and Annual Fee for the period
from 01st June, 2014 to 30th October, 2016. As decided by management of TSPCC, APTRANSCO
claims are not accounted in the books. In view of this, there is no mandate to APTRANSCO to claim
any Transmission and SLDC charges beyond the direction of Hon’ble Commission.
34. The company has identified the vendors under “The Micro, Small and Medium Enterprises Development
Act, 2006” and disclosed trade payables under MSME’s. However, confirmation of balances are pending
from the above vendors.
35. With regard to the FCA claimed by the Chhattisgarh State Power Distribution Company Limited,
TSDISCOMS filed a petition before the Hon’ble Appellate Tribunal for Electricity (APTEL) contending
that the completed Capital cost approved by CSERC is on high side and pleaded before the APTEL to
consider the reasonable cost. The provision and expenditure accounted by TSDISCOMS is well within
the limits proposed in CSERC orders. Therefore, there is no understatement of the Power Purchase cost.
36. VAT audit completed up to 06/2017. Sales Tax assessment for the Financial Year 2017-18 is in progress.
37. The company has appointed Cost auditor and Cost Audit is completed up to the financial year 2019-20.
38. AP Genco has filed the petition before the Honorable National Company Law Tribunal for initiating
corporate insolvency process against the company for non-payment of dues. The petition is still pending
with the Hon’ble National Company Law Tribunal for Disposal.
39. Though the Company has negative net worth as at 31.03.2021, the State Government of Telangana is
implementing UDAY scheme which consists of infusion of equity capital and taking over a part of
losses and infusion of additional investments in the form of equity, the company expects that in future
years the negative net worth will become positive net worth. Accordingly the books of accounts are
being maintained on going concern basis.
40. In respect of provision for surcharge of M/s. Singareni Collieries Company Ltd. (SCCL), as the DISCOM
and SCCL are Government companies, the DISCOM is taking up the issue with SCCL to waive late
payment surcharge. To avoid the burdening the consumers, TS DISCOMS have requested to waive the
late payment surcharge as it is not covered in ARR order. The late payment surcharge levied as at
31.03.2020 is Rs.959.55 Crore and for the F.Y.2020-21 no surcharge has been raised.

41. Quantitaive Information

Particulars 2020-21 2019-20
Energy Input ( Discom ) ( KWH in MU ) 44,492.99 45,247.02
Sale of Energy (KWH in MUs) 40,329.94 40,981.27

42. The requirements of the following Accounting Standards issued by the ICAI are not applicable to the
Company-
AS 7 Construction Contracts
AS 17 Segment Reporting since Distribution and Retail Supply of Power comprises the only primary &
reportable segment.

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AS 18 Related Party Disclosures since the Company is a State Government Company and falls within
the designation of ‘State Controlled Enterprise’
AS 21 Consolidated Financial Statements, since the Company does not have any Subsidiary Company.
AS 23 Accounting for Investments in Associates in Consolidated Financial Statements
AS 25 Interim Financial Reporting
AS 27 Financial Reporting of Interest in Joint Ventures

43. Previous year figures have been regrouped wherever necessary.

44. Amounts represented in the financial statements have been rounded off to the nearest rupee.

As per our report of even date For and on behalf of the Board of Directors of
Southern Power Distribution Company of Telangana Limited

Sd/- Sd/-
For M/s. Ramanatham & Rao Sri P. Narasimha Rao Sri G. Raghuma Reddy
Chartered Accountants Director Finance / CFO Chairman & Managing Director
FR No. 002934 S DIN : 08242557 DIN : 02943771

Sd/- Sd/- Sd/-

L. Mahesh Kumar P. Krishna Reddy Anil Kumar Voruganti
Partner Chief General Manager Company Secretary
M. No 212851 (Finance) F.No. 9521
Date : 06.09.2021
Place: Hyderabad

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Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.

Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

INDEPENDENT AUDITOR’S REPORT

To
The Members of
Southern Power Distribution Company of Telangana Limited,
Hyderabad.

Report on the Audit of Financial Statements

Qualified Opinion:
We have audited the accompanying financial statements of Southern Power Distribution Company of
Telangana Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh
Limited)(“the company”), Hyderabad, which comprise the Balance Sheet as at 31stMarch, 2021 and the
Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information (hereinafter referred to as “the financial
statements”).

In our opinion and to the best of our information and according to the explanations given to us, except for
the possible effect of the matters described in the Basis for Qualified Opinion paragraphs, the aforesaid
financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so
required and give a true and fair view in conformity with the Accounting Standards prescribed under section
133 of the Act read with the Companies (Accounts) Rules, 2014, of the state of affairs of the Company as at
31stMarch, 2021, its losses and its cash flows for the year ended on that date.

Basis for Qualified Opinion:

1. We are informed that the Company is governed by the Electricity Act, 2003 and accordingly the provisions
of the said Act would prevail, wherever the same are inconsistent with the provisions of the Companies
Act, 2013 in terms of section 174 of the Electricity Act. Accordingly, in terms of section 185(2)(d) of
the Electricity Act, the Annual Accounts of the Company have been prepared as per the rules prescribed
under “Electricity (Supply) (Annual Accounts) Rules 1985. Accordingly, the Company has not complied
with some of the mandatory Accounting Standards, as specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014 and the requirements of Schedule – III to the Companies
Act, 2013, details of which are given here under:
a) Capitalization of administrative overheads (including staff cost) at 10% of the direct cost of the
assets capitalized during the year as per the company’s Accounting Policy No.1.5(c), amounting to
Rs.82.15 Crore is not in accordance with Accounting Standard-10: “Property Plant and Equipment”,
as the same is not attributable as expenditure incurred directly to bring the said assets to working
condition.

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Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

b) As stated in Accounting Policy No.1.8, recognition of the contributions received from consumers
and specific grants from the State/Central Governments or their Agencies for creation of tangible
assets as “Reserves” on receipt basis, even before the creation of the said assets and adjustment of
the same against depreciation on the proportionate value of the assets built out of the said
Contributions and Grants, instead of the specific assets created with the said contributions/grants,
which is contrary to Accounting Standard 12 “Accounting for Government Grants”.
c) Non-recognition of the “parcels of land” received at free of cost from State Government and its
agencies in the books of account, as required by Accounting Standard 12 “Accounting for
Government Grants”.
2. Consequent to the creation of the State of Telangana, in accordance with the Andhra Pradesh Reorganization
Act, 2014, the Anantapur and Kurnool operating business circles of the company have been reassigned to
APSPDCL with effect from 2nd June, 2014 in accordance with G.O.Ms.No.24 dated 29th May, 2014 issued
by State of Andhra Pradesh. The company has recognized the transfer of assets and liabilities in the
financial year 2015-16 of these two Circles in its books of account, as per the “Basis of Apportionment”
mentioned in the said G.O. which is approved by the Expert Committee constituted by the Government of
India, which is computed under the “pooling of interest” method. The company instead of recognizing the
share of the said two Circles in the “Share Capital” of Rs.325.28 Crore as a reduction in the share capital,
recognized Rs.723.01 Crore as “Capital Reserve” resulting in understatement of its negative net-worth by
Rs.1,048.29 Crore and consequential overstatement of “Receivables.”
3. The Company has not recognized the revenue receivable under UDAY scheme (As per Tripartite
Memorandum of Understanding) as detailed below:
Financial Year Amount (Rs. Crores)
2018-19 392.48
2019-20 1,241.81
2020-21 2,470.13
Total 4,104.42
This has resulted in understatement of Revenue from Operations and Other Current Assets – Receivable for
government by Rs.4,104.42 Crore.
4. The Company has made provision for Pension & Gratuity in respect of employees who were on rolls on
31.01.1999 and retired thereafter to the extent of 26% only of the total amount as arrived as per actuarial
valuation. This has resulted in understatement of Provision for employee liabilities and understatement
of Loss for the year to the extent of Rs.7,967.35 Crore.
5. (a) Amount of Rs.959.55 Crore towards surcharge on late payment payable to Singareni Thermal Power
Plant (STPP) upto 31st March, 2020 is neither paid nor provided in the books of account resulting in
understatement of Reserves & Surplus and Trade Payables to the same extent.
(b) The company has neither quantified nor provided late payment surcharge payable to STPP for the
financial year 2020-21. Hence, the impact of the same on the financial statements could not be
ascertained.

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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

6. The Company has applied depreciation rates notified by the Ministry of Power (MoP) vide S.O.266 (E)
dated 29th March, 1994 in respect of the Tangible Assets instead of adopting the depreciation rates
notified by CERC vide its notification No.L-1/236/2018/CERC dated 7th March, 2019 as required by
Schedule II of the Company Act, 2013. This has resulted in overstatement of depreciation and amortization
expenses and understatement of Tangible Assets as at 31st March, 2021 by Rs.374.06 Crore. Consequently,
loss for the year is also overstated by the same amount.
7. During the Financial Year 2018-19 the company has forfeited Bank Guarantees of Rs.52.13 Crore and
recoginsed the same as income for that year. This amount includes Rs.9.13 Crore pertaining to Kurnool
and Anantapur districts under Andhra Pradesh Southern Power Distribution Company Limited
(APSPDCL). This has resulted in understatement of Provisions and overstatement of Reserves & Surplus
by Rs.9.13 Crore for the Year ended 31st March, 2021.
8. We report that the following accounts have not been reconciled as at 31st March, 2021 and accordingly
we are unable to express an opinion on the effect of said un-reconciled amounts on the financials of the
company for the year:
a) Inter units’ accounts with a credit balance of Rs.8,85,11,972/-.
b) Amount appearing under loan clearing (CPDCL) account with a debit balance of Rs.3,67,53,367/.
9. Overall impact of the above Qualifications which are quantifiable is as follows:
a) Understatement of Net loss for the year – Rs. 4,457.55 Crore.
b) Understatement of Negative Net worth – Rs. 5,505.84 Crore.

Emphasis of Matters:
1. Consequent to the amendment brought in vide G.O.Ms.396 dated 09.06.2005 to the second transfer
scheme notified vide G.O.Ms. 142 dated 29.09.2001, the Company has incorporated in its books of
account as on 01.04.2010, various assets, including fixed assets and liabilities towards power purchase,
supplies & services received and balances outstanding in respect of the loans, representing term loans,
cash credits, working capital loans received from various banks and financial institutions, other receivables
from the State Government of AP, of the amounts mentioned in the two notifications referred to above.
We understand that the above amounts, at which the various assets and liabilities are recognized in the
books of account as on that date, are provisional and accordingly are subject to further adjustments as
may be determined by the State Government.
2. We draw your attention to Note No. 1.16 (a) (ii) wherein, the State Government of Andhra Pradesh
amended retrospectively with effect from 09.06.2005, the share of each DISCOM in various bulk supply
power purchase agreements vide its notification No.53 Energy (Power III) dated 28.04.2008. We are
informed that the company has made a representation to give effect to the said revised sharing
prospectively. Pending disposal of the company’s representation, the contingent liability/receivables,
if any, due to the said retrospective amendment of the share of the company in various bulk supply of
power purchase agreements has not been disclosed in the books of account.

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Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

3. We draw your attention to Note No. 27 where in Exceptional Items includes Prior period income which
pertains to Reversal of Interest on Loans amounting to Rs.598.29 Crore pertaining to Anantapur and
Kurnool from F.Y.2014-15 to F.Y.2019-20 and transferring the same to Receivables from APSPDCL.
4. Current accounts maintained with various banks have Board excess, being cheques/cash deposited in banks
and not appearing in banks’ statements of account for Rs.19,89,34,882/- (of which Rs.1,10,15,115/- is
outstanding for more than three months) and Bank excess, representing amounts credited by banks but not
appearing in the books of account of the company of Rs.31,44,54,023/- as on 31.03.2021.
5. Letters of confirmation of balances have not been provided for our verification in respect of the following,
the impact that may result on reconciliation and review of the same cannot be ascertained:
a. Balances due to/from various vendors for supplies and services, EMDs, SDs, other power distribution
companies.
b. Balances due from/to various consumers/customers.
Our opinion is not modified in respect of the aforesaid matters.

Material Uncertainty related to Going Concern

We draw attention to Note No. 38 & Note No. 39 in the financial statements, the events or conditions
mentioned in the said notes indicate that material uncertainties exist that may cast significant doubt on the
Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
Information Other than the Financial Statements and Auditor’s Report Thereon
The Company’s Board of Directors is responsible for the preparation of the other information. The other
information comprises the information included in the Management Discussion and Analysis, Board of
Directors’ Report including Annexures to Board’s Report, Business Responsibility Report, Corporate
Governance and Shareholder’s Information, but does not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial statements
or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed, we conclude that there is material misstatement therein; we are
required to report that fact, we have nothing to report in this regard.
Management’s Responsibility for the Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section 134(5) of the Act with
respect to the preparation of these financial statements that give a true and fair view of the financial position,
financial performance, changes in equity and cash flows of the Company in accordance with the accounting

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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

principles generally accepted in India, including the Accounting Standards specified in Section 133 of the
Act, read with Rule 7 of Companies (Accounts) Rules, 2014. This responsibility also includes maintenance
of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of
the Company and for preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation
of the financial statements that give a true and fair view and are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so. The Board of Directors is responsible for overseeing the Company’s
financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Responsible assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with SA’s will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
 Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 Obtain an understanding of internal financial controls relevant to the audit in order to design audit
procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also
responsible for expressing our opinion on whether the Company has adequate internal financial controls
system in place and the operating effectiveness of such controls.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude

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Report TSSPDCL P.B. No. 2102, Flat # 302, Kala Mansion,
Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the financial statements or if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Company to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,
makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements
may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of
our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified
misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on Other Legal and Regulatory Requirements:

1) As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Government
of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement
on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2) As required by Section 143(5) of the Act, we have considered the directions/ sub-directions issued by
the Comptroller and Auditor General of India, the action taken thereon and its impact on the financial
statements of the Company are given in the Annexure B.
3) As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of knowledge
and belief were necessary for the purpose of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far
as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow statement dealt with by this
Report are in agreement with the books of account.
d) Except for the matters described in the Basis for Qualified Opinion Paragraphs, in our opinion, the
aforesaid financial statements comply with the Accounting Standards specified under Section 133
of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

e) The matters described in the Basis for Qualified Opinion above, in our opinion, may have an
adverse effect on the functioning of the Company.
f) Being a Government company, the company is exempted from the provisions of section 164 (2) of
the Act regarding disqualification of Directors vide Notification GSR- 463 (E), dated 5thJune, 2015
issued by Government of India, Ministry of Corporate Affairs.
g) With respect to the adequacy of the internal financial controls over financial reporting of the Company
and the operating effectiveness of such controls, refer to our separate Report in “Annexure C” to
this report.
h) With respect to the other matters to be included in the Auditor’s Report in accordance with the
requirements of section 197 (16) of the Act, as amended:
Being a Government company, the company is exempted from the provisions of section 197 (16)
of the Act regarding remuneration to Directors vide Notification GSR- 463 (E), dated 5thJune, 2015
issued by Government of India, Ministry of Corporate Affairs.
i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11
of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information
and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its
financial statements.
ii. The Company has made provision, as required under the applicable law or accounting
standards for material foreseeable losses, if any, on long term contracts including derivative
contracts.
iii. There were no amounts which were required to be transferred to the Investor Education and
Protection Fund by the Company.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration Number: S-2934

Sd/-
L. MAHESH KUMAR
Place: Hyderabad Partner
Date: 06.09.2021 Membership Number: 212851
UDIN: 21212851AAAACU5454

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Report TSSPDCL P.B. No. 2102, Flat # 302, Kala Mansion,
Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

ANNEXURE A TO THE INDEPENDENT AUDITOR’S REPORT:

The Annexure A referred to in “Report on Other Legal and Regulatory Requirements” paragraph of our
Independent Auditor’s Report of even date, to the members of Southern Power Distribution Company of
Telangana Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh
Limited) (“the company”), Hyderabad for the year ended 31stMarch, 2021.
We report that:
i) a) The Company has maintained proper records showing full particulars, including quantitative details
and situation of fixed assets.
b) We are informed by the Company that no physical verification of fixed assets has been carried-out
during the year under report. Accordingly, we are unable to comment regarding any material
discrepancies between the fixed assets register and the assets physically available.
c) We are informed by the company that purchase/gift/lease deeds are generally executed in respect of
“parcels of land” purchased/gifted/given on long term lease upto 99 years to the company by private
parties, which are generally kept at various field offices of the company and accordingly complete
details along with the said deeds could not be provided to us, except a very few deeds executed during
the year under audit. We are also informed by the company that in respect of the “parcels of land”
alienated to it by the Statement Government or its agencies other than the letters of alienation/allotment/
physical handing over, no other legal documents are generally executed and that the said letters are
available with various field offices of the company and accordingly complete details along with the
said letters could not be provided to us, except a few letters executed. Accordingly, we are unable to
report whether appropriate legal documents evidencing the title of the company in respect of all the
immovable properties owned by the company are available with the company.
ii) Physical verification of inventory has been conducted during the year by the management at reasonable
intervals. The discrepancies noticed on such verification between the physical stocks and the book
records were not material.
iii) The Company has not granted any loans, secured or unsecured, to Companies, Firms, Limited liability
partnerships or other parties covered in the register maintained under section 189 of the Companies Act,
2013, Consequently, clauses 3 (iii) (a), (b) and (c) of the Order are not applicable.
iv) The company has neither given any loans to the directors or any other persons in whom the director is
interested nor given/provided any guarantee/security in connection with any loan taken by directors or
such other persons as per the provisions of section 185 of the Companies Act, 2013.
v) The Company has not accepted any deposits from public. Consequently, the clause 3(v) of the order is
not applicable to the Company.
vi) We have broadly reviewed the books of account relating to materials, labour and other items of cost
maintained by the Company pursuant to the Rules made by the Central Government for the maintenance
of cost records under sub-section (1) of section 148 of the Companies Act, 2013 and we are of the
opinion that prima facie the prescribed accounts and records have been made and maintained. However,
we have not made a detailed examination of the records.
vii) a) According to the information and explanations given to us and on the basis of examination of the
records of the Company, amounts deducted/accrued in the books of account in respect of undisputed

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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

statutory dues including provident fund, income-tax, sales-tax, service tax, duty of customs, duty
of excise, value added tax, cess, Goods & Services Tax and other material statutory dues have been
regularly deposited during the year by the Company with the appropriate authorities, except for
Goods & Service Tax and Electricity Duty which are not paid regularly.
Accordingly to the information and explanations given to us, no undisputed amounts are payable in respect
of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax or cess, Goods &
Services tax and other statutory dues which were in arrears as at 31st March, 2021 for a period of more than
six months from the date they became payable, except the following:
Name of the Nature of dues Period to which the Amount
statute/Authority amount relates (Rs. In Lakhs)
Central Sales Tax Act, 1956 Central Sales Tax From F.Y. 2012-13 to 2015-16 0.97
Goods and Services Goods & Service Tax FY 2019-20 113.87
Act, 2017 FY 2020-21 59.88
Electricity Duty Act/ Electricity Duty FY 2018-19 1,344.36
State Government FY 2019-20 17,370.67
FY 2020-21 7,770.13
b) As on 31stMarch, 2021, there have been no disputed dues, which have not been deposited with the
respective of income tax, service tax, duty of customs, and duty of excise, value added tax, Goods
& Services tax and Cess except the following:
S.No. Name of the Nature of Amount Period to which the Forum where
Statute the Dues (Rs. In Crore) amount relates dispute is pending
A.P. Tax on entry of Entry tax on For the financial year from Hon’ble High Court
1. goods in local area goods purchased 207.7* 2002-03 to 2016-17 of Telangana
Act, 2001 from outside state
A.P. General Sales For the financial year from Hon’ble A.P Sales
2. Tax Act, 1956 Sales Tax 1.34 2001-02 to 2004-05 Tax Appellate
Tribunal, Hyderabad
86.48* For the financial year from Hon’ble High
2008-09 to 2012-13 Court of Telangana
3. A.P.VAT Act, 2005 VAT Appellate Deputy
(including Financial Years Commissioner,
penalty) 0.44 2008-09 & 2009-10 Commercial Taxes
Hyderabad.
4. Finance Act, 1994 194.53 From July, 2012 Hon’ble High Court
Service Tax to June, 2017 of Telangana
(including 11.73 From 2012-13 to Customs, Excise and
penalty) 2015-16 Service Tax Appellate
Tribunal

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Report TSSPDCL P.B. No. 2102, Flat # 302, Kala Mansion,
Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

14.88 Financial Year Hon’ble High Court

5. Income Tax Act, 1961 TDS 2006-07 of Telangana
78.37 For the Financial Years Hon’ble Supreme
2007-08 & 2008-09 Court of India
Central Government
6. EPF Act EPF 0.14 2017-18 Industrial Tribunal,
Hyderabad
14.16 From 2014-15 to Hon’ble High Court
2016-17 of Telangana
* Net of deposits made

viii) According to the information and explanations given to us, the Company has not defaulted in
repayment of any loan installments in respect of term loans from financial institutions and banks.
ix) In our opinion and according to the information and explanations given to us, the Term Loans
obtained during the financial year under report and in earlier years have been applied for the
purposes for which they were raised.
x) According to the information and explanations given to us, no fraud by the company or on the
Company by its officers or employees has been noticed or reported during the course of our audit.
xi) According to the information and explanations given to us and based on our examination of the records
of the Company, the Company has paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii) In our opinion, the company is not a Nidhi Company, Consequently, the clause 3 (xii) of the order
is not applicable.
xiii) According to the information and explanations given to us and on overall examination of the
records of the Company, we report that all transactions with related parties are in compliance with
the provisions of sections 177 and 188 of the Companies Act, 2013 and the related party disclosures
as required by relevant Accounting Standards are disclosed in the financial statements.
xiv) During the year the Company has not made preferred allotment of shares. The Company has not
issued fully/partly convertible debentures during the year under review. Consequently, the clause
3 (xiv) of the order is not applicable.
xv) The Company has not entered into any non-cash transactions with the directors or persons connected
with them during the year under report. Consequently, the clause 3 (xv) of the order is not applicable.
xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India
Act, 1934. Consequently, the clause 3 (xvi) of the order is not applicable.
For RAMANATHAM & RAO
Chartered Accountants
Firm Registration Number: S-2934

Place: Hyderabad Sd/-

L. MAHESH KUMAR
Date: 06.09.2021 Partner
Membership Number: 212851
UDIN: 21212851AAAACU5454
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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

The Annexure B referred to in “Report on Other Legal and Regulatory Requirements” paragraphs of our
Independent Auditor’s report of even date on the financial statements of members Southern Power
Distribution Company of Telangana Limited (Formerly known as Central Power Distribution
Company of Andhra Pradesh Limited)(“the company”), Hyderabad.
We report that:

S.No Questions Replies

1 Whether the Company has system Yes, the Company has a system in place to process all the
in place to process all the accounting accounting transactions through SAP IT system. During
transactions through IT system? If Financial Year 2020-21, all the accounting transactions
yes, the implications of processing have been processed through IT system.
of accounting transactions outside However, for preparation of financial statements some
IT system on the integrity of the manual interventions are carried out.
accounts along with the financial
Major discrepancies in certain areas are given here
implications, if any, may be stated.
under:
1. Payroll system module is not fully integrated with
finance system module, resulting in a difference of
Rs.0.10 Crore excess in finance module, when
compared to payroll module for employee loans.
2. Inter units’ balances were not properly processed
through IT system, which has resulted in uncleared
credit balance of Rs.8.85 Crore.
3. Revenue module is not fully integrated with FICO
module and variances are duly adjusted.

2 Whether there is any restructuring of During the year under consideration, there is no case of
an existing loan or cases of waiver/ restructuring of any existing loan or case of waiver/write
write off of debts/loans/interest etc. off of debts/loans/interest etc. by a lender to the Company.
made by a lender to the company due
to the company’s inability to repay
the loan? If yes, the financial impact
may be stated. Whether such cases
are properly accounted for. (In case,
lender is a Government company,
then this direction is also applicable
for statutory auditor of lender
company).

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Report TSSPDCL P.B. No. 2102, Flat # 302, Kala Mansion,
Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

3 Whether funds (grants/subsidy According to the information and explanation given to

etc.) received/receivable for us and on the basis of our verification of the records
specific schemes from Central/ funds received/receivable from Central/State
State Government or its agencies Governments under various projects/schemes have been
were properly accounted for/ properly accounted for and released to the beneficiaries/
utilized as per its term and spent/utilized as per guidelines and terms & conditions
conditions. List the cases of as mentioned in the relevant sanction letters.
deviation.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration Number: S-2934
Place: Hyderabad
Date: 06.09.2021
Sd/-
L. MAHESH KUMAR
Partner
Membership Number: 212851
UDIN: 21212851AAAACU5454

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Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

The Annexure C referred to in “Report on Other Legal and Regulatory Requirements” paragraph of our
Independent Auditor’s report of even date on the financial statements of Southern Power Distribution
Company of Telangana Limited (Formerly known as Central Power Distribution Company of Andhra
Pradesh Limited) (“the company”), Hyderabad.
Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of
Section 143 of the Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Southern Power Distribution
Company of Telangana Limited (Formerly known as Central Power Distribution Company of Andhra Pradesh
Limited) (“the Company”), Hyderabad, as of 31stMarch, 2021in conjunction with our audit of the financial
statements of the Company for the year ended on that date.

A. Management’s Responsibility for Internal Financial Controls

1. The Company’s management is responsible for establishing and maintaining internal financial controls
based on “the internal control over financial reporting criteria established by the Company considering
the essential components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.” These
responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including
adherence to company’s policies, the safeguarding of its assets, the prevention and detection of frauds
and errors, the accuracy and completeness of the accounting records, and the timely preparation of
reliable financial information, as required under the Companies Act, 2013.

B. Auditors’ Responsibility
2. Our responsibility is to express an opinion on the Company’s internal financial controls over financial
reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit
of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on
Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act,
2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those
Standards and the Guidance Note require that we comply with ethical requirements and plan and perform
the audit to obtain reasonable assurance about whether adequate internal financial controls over financial
reporting was established and maintained and if such controls operated effectively in all material respects.
3. An audit involves performing procedures to obtain audit evidence about the adequacy of the internal
financial controls system over financial reporting and their operating effectiveness. Our audit of internal
financial controls over financial reporting included obtaining an understanding of internal financial
controls over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error.
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Report TSSPDCL P.B. No. 2102, Flat # 302, Kala Mansion,
Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.
Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

4. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion on the Company’s internal controls system over financial reporting.

C. Meaning of Internal Financial Controls over Financial Reporting

5. A company’s internal financial control over financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles. A company’s internal
financial control over financial reporting includes those policies and procedures that:
i) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
ii) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorizations of
management and directors of the company; and
iii) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition,
use, or disposition of the company’s assets that could have a material effect on the financial
statements.

D. Inherent Limitations of Internal Financial Controls over Financial Reporting

6. Because of the inherent limitation of internal financial controls over financial reporting, including the
possibility of collusion or improper management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of any evaluation of the internal control
over financial reporting to future periods are subject to the risk that the internal financial control over
financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.

E. Qualified Opinion
7. According to the information and explanations given to us and based on our audit, the following material
weaknesses have been identified in the operating effectiveness of the company’s internal controls over
financial reporting as at 31stMarch, 2021;
8. Absence of control in respect of:
a. Seeking balance confirmations and performing periodical reconciliations of various receivables,
payables, deposits, advances etc.
b. Capitalization of capital work orders without work order completion certificates and non-closure
of work orders.
c. Reconciliation of various modules information with Finance module in SAP.

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Ramanatham & Rao Sarojini Devi Road, Secunderabad-500003.

Ph: +91-40-27814147. Fax: +91-40-27840307
Chartered Accountants E-mail: [email protected]

9. A material weakness is a deficiency, or a combination of deficiencies, in internal financial control over

financial reporting, such that there is reasonable possibility that a material misstatement/(s) of the
company’s annual financial statements will not be prevented or detected on a timely basis.
10. In our opinion, the Company has, in all material respects, an adequate internal financial controls system
over financial reporting and such internal financial controls over financial reporting were operating
effectively as at 31st March, 2021, based on “the internal control over financial reporting criteria
established by the Company considering the essential components of internal controls stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute
of Chartered Accountants of India” and except for the possible effect of the material weaknesses described
above on the achievement of the objectives of the control criteria, the company’s internal financial
controls over financial reporting were operating effectively as at 31st March, 2021.

For RAMANATHAM & RAO

Chartered Accountants
Firm Registration Number: S-2934
Place: Hyderabad
Date: 06.09.2021

Sd/-
L. MAHESH KUMAR
Partner
Membership Number: 212851
UDIN: 21212851AAAACU5454

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C & AG
REPORT

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OFFICE OF THE ACCOUNTANT GENERAL (Audit)

Telangana, Hyderabad

Lr.No.AG (Audit)/TSC/AA/TSSPDCL/2020-21/140 Dated: 24.11.2021.

To
The Chairman and Managing Director,
Southern Power Distribution Company of Telangana Limited,
6-1-150, Mint Compound,
Hyderabad - 500063.

Sub:- Comments of the Comptroller and Auditor General of India under Section 143 (6) (b) of
the Companies Act, 2013 on the Financial Statements of the Southern Power Distribution
Company of Telangana Limited for the year ended 31 March 2021.



Sir,
I am to forwarding herewith Comments of the Comptroller and Auditor General of India under
Section 143 (6) (b) of the Companies Act, 2013 on the Financial Statements of your Company for the year
ended 31 March 2021 for necessary action.
2. The date of placing of Comments along with Financial Statements and Auditors’ Report before the
shareholders of the Company may please be intimated and a copy of the proceedings of the meeting
furnished.
3. The date of forwarding the annual report and financial statements of the Company together with the
Auditors’ Report and Comments of the Comptroller and Auditor General of India to the State Government
for the year 2020-21 for being placed before the Legislature may also be intimated. The date on which
Annual Report is tabled in the Legislature may also be intimated.
4. Ten copies of the annual report for the year 2020-21 are to be furnished in due course without fail.

Yours faithfully,
Encl: As above
Sd/-
(Rohit M. Gutte)
Deputy Accountant General/AMG-II

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COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER

SECTION 143 (6) (b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF
THE SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED FOR THE
YEAR ENDED 31 MARCH 2021.
The preparation of the financial statements of Southern Power Distribution Company of Telangana Limited
for the year ended 31 March, 2021 in accordance with the financial reporting framework prescribed under
Companies Act, 2013 (Act) is the responsibility of the management of the Company. The Statutory auditors
appointed by the Comptroller and Auditor General of India under section 139 (5) of the Act are responsible
for expressing an opinion on the financial statements under section 143 of the Act based on Independent
audit in accordance with the standards on auditing prescribed under section 143(10) of the Act. This is
stated to have been done by them vide their Audit Report dated 06.09.2021.

I, on behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit of the
financial statements of the Southern Power Distribution Company of Telangana Limited for the year ended
31 March, 2021 under section 143(6)(a) of the Act. This supplementary audit has been carried out
independently without access to the working papers of the Statutory Auditors and is limited primarily to
inquiries of the Statutory Auditors and Company’s personnel and a selective examination of some of the
accounting records.

Based on my supplementary audit, I would like to highlight the following significant matters under Section
143(6)(b) of the Act which have come to my attention and which in my view are necessary for enabling a
better understanding of the financial statements and the related audit report.

A. Comments on Profitability:
Statement of Profit & Loss
Expenses
Finance Costs (Note 26): Rs.1905.46 crore
1. The above does not include Rs.142.63 crore being guarantee commission payable to the GoT for the year
2020-21 towards Government Guarantee in respect of loans availed by the Company. This resulted in
understatement of Finance Cost, Current Liabilities and loss for the year by Rs.142.63 crore.

B. Comments on Disclosure:
2 The levy of wheeling charges on the non-conventional energy sources and mini-power plants set up by
private sector for captive consumption were governed by MoUs / Orders issued by the Government.
Based on Aggregate Revenue Requirement (ARR) filed by the then APTRANSCO before the State
Electricity Regulatory Commission (the Commission) for the year 2002-03 seeking revision in wheeling
charges, the Commission determined that the wheeling charges for the year 2002-03 would be Rs.0.50
paise per unit (KWH) for energy transmitted and compensation in kind for system losses of 28.4 per

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cent of energy input by the project developer. The project developers challenged the said order in the
Hon’ble High Court of Andhra Pradesh, which set aside the Commission’s order in May 2003. Power
utilities (DISCOMs) challenged the Court order in the Hon’ble Supreme Court, which stated (29
November 2019) that the Commission constituted under the Electricity Reforms Act, 1998 has the
powers to determine the wheeling charges.
Based on the judgment of the Hon’ble Supreme Court, the Company issued demand notices for Rs.369.49
crore and Rs.1060.50 crore towards principal for the period from 2002-03 to 2014-15 and delayed
payment surcharge up to January 2020 respectively on the scheduled consumers and generators and
recognised entire amount (Rs.1429.99 crore) as revenue during 2020-21 (Revenue from Operations-
Note 21). Most of the scheduled consumers and generators approached the Hon’ble High Court of
Telangana against the demand notices issued by the Company and obtained stay orders. However, these
facts were not disclosed in the Financial Statements.
3. The Company accounted for retirement gratuity liability of Rs.221.89 crore during the year in respect of
the employees appointed before and after 01.02.1999 as per actuarial valuation, which considered
maximum limit of Rs.12 lakh in respect of employees appointed before 01.02.1999 and Rs.10.00 lakh in
respect of employees appointed after 01.02.1999. As per orders issued by GoT in June 2021, maximum
limit of retirement gratuity was enhanced from Rs.12 lakh to Rs.16 lakh, which is applicable to all State
Government employees from 01.04.2020. Further, as per the Gratuity Act, 1972 (amended) the maximum
limit of retirement gratuity was enhanced to Rs. 20.00 lakh with effect from 29.03.2018. However, the
Company did not adopt the orders of GoT and Gratuity Act to recalculate gratuity liability based on
enhanced limit of Rs.16 lakh and Rs.20.00 lakh. Although the Company adopted gratuity limit different
from orders of GoT and Gratuity Act, financial impact could not be quantified as it requires valuation
by an expert (Actuary).
Further, as per disclosure at Note-24 under Employee Benefit Expenses read with significant accounting
policy at 1.11 (b) (Employee Benefits), the Company did not disclose the significant accounting
assumptions adopted for calculating retirement gratuity liability of different category of employees,
applicable gratuity rules, and impact of deviations in Financial Statements.
4. Company extends various medical benefits to its employees and pensioners under four different medical
schemes. Accounting Standard 15 – Employee benefits prescribes that Medical care/benefits needs to
be valuated and should be provided in books of accounts by carrying out actuarial valuation. However,
the Company has neither carried out the actuarial valuation nor accounted for liability for medical
benefits extended to its employees and pensioners. Further, the Company did not disclose the fact of
non-provision of the liability towards Medical care/benefits.
5. Singareni Thermal Power Plant (STPP) claimed an amount of Rs. 31.46 crore towards variation of
Gross Calorific Value (GCV) for the year 2019-20 and 2020-21 through monthly energy supply charges
bills on ‘as fired GCV’ basis as per Clause 21.10 of SERC tariff order. However, the Company contested
the claims while regulating the coal bills ‘as received GCV’ basis in the variable cost (energy charges).
The matter was taken up with Telangana State Electricity Regulatory Commission (TSERC) for
clarification, which was pending. Hence, the facts should have been disclosed in Financial Statements.
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6. STPP submitted (June 2019) power bills for the period from 2016-17 to 2018-19 towards additional
coal bills, incentive, water charges and other charges to the Telangana State Power Coordination
Committee (TSPCC), which decided to defer the claim till STPP obtains the approval of the TSERC for
additional claims amounting to Rs.121.92 crore, being the Company’s share of 70.55 per cent of total
Rs. 172.81 crore. The facts should have been disclosed in Financial Statements.

For and on the behalf of the

Comptroller and Auditor General of India

Sd/-
Place: Hyderabad. (CHANDA PANDIT)
Date: 24.11.2021 Prl. Accountant General (Audit)

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PROXY FORM

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PROXY FORM
SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED
(Formerly Central Power Distribution Company of Andhra Pradesh Ltd)
Form No. MGT -11
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies
(Management and Administration) Rules, 2014]
CIN : : U40109TG2000SGC034116
Name of the Company : SOUTHERN POWER DISTRIBUTION COMPANY OF TELANGANA LIMITED
Registered Office : 6-1-50, Mint Compound, Hyderabad – 63
Name of the Member(s) :
Registered Address :
E-Mail Id :
Folio. No/Client Id :
DP ID :
I/We, being the member(s) of …………. Shares of the above named Company, hereby appoint
1. Name : ………………..
Address :
E-Mail Id :
Signature : …………., or failing him
2. Name :
Address :
E-Mail Id :
Signature : …………., or failing him
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the .......Annual General
Meeting/extra ordinary general meeting of the Company, to be held on the.....................the...................at
............. the Registered office of the company at 6-1-50, Mint Compound, Hyderabad -63 and at any
adjournment thereof in respect of such resolutions as are indicated below:
Resolution No.
1. …………………….
2. …………………….
3. …………………….
Affix
Revenue
Signed this …………… day of .......... .......... Stamp

Signature of shareholder

Signature of Proxy holder(s)

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the
Company, not less than 48 hours before the commencement of the Meeting.

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AVERAGE REALISATION FROM SALE OF POWER

Average Realisation from sale of power Schedule - 3 for F.Y. 2020-21

No. of 2019-20

Consumers KVAH Average Average

Consumer Category (Excluding KWH Sales Sales Revenue % of Units Realisation Realisation

Bill (MU) (MU) (Rs.Crore) Sold on kvah (Rs/Unit) (Rs/Unit)

Stopped) kvah (kvah)

L.T. Cat.-I Domestic 6817306 8911.84 8912.15 4,210.03 23.10 4.72 4.78

L.T. Cat.-II Non-Domestic 904559 2160.57 2194.70 2,285.20 5.69 10.41 10.43

L..T.Cat-III Industrial 44492 880.01 926.89 732.38 2.40 7.90 8.05

L.T. Cat-IV Cottage Industries 4354 9.58 9.58 4.36 0.02 4.55 4.69

L.T. Cat-V Agriculture 1190930 11744.84 11744.84 43.07 30.44 0.04 0.04

L.T. Cat-VI Street Lights 104891 478.23 478.12 304.80 1.24 6.37 6.48

L.T. Cat-VII General Purpose 23176 47.69 47.69 37.13 0.12 7.79 7.74

L.T. Cat-VIII Temporary Supply 7589 53.43 53.51 64.80 0.14 12.11 12.44

L.T. Cat-IX EVC 19 0.02 0.02 0.01 0.00 7.60

L.T. Total 9097316 24286.21 24367.50 7681.78 63.15 3.15 3.44

H.T. Cat.I Industrial 5435 9403.82 9512.39 7,707.28 24.65 8.10 7.47

H.T. Cat.II Others 3748 1844.96 1892.77 1,934.63 4.91 10.22 9.09

H.T. Cat.III Aviation 11 52.73 52.66 40.15 0.14 7.62 7.22

H.T. Cat.IV Agricultural 315 2129.38 2191.59 1,501.88 5.68 6.85 6.42

H.T. Cat.V Railway Traction 13 239.37 241.51 164.14 0.63 6.80 6.29

H.T. Cat.VI Residential 187 212.75 214.46 141.31 0.56 6.59 6.36

H.T. Temp. 298 103.85 113.36 168.69 0.29 14.88 13.49

H.T. Cat-IX EVC 3 1.60 1.61 1.01 0.00 6.25 2.02

H.T. Total 10010 13988.46 14220.35 11659.08 36.85 8.20 7.59

L.T. + H.T. Total 9107326 38274.67 38587.85 19,340.87 100.00 5.01 5.15

Add: Electricity Duty 155.75

Gross Revenue 19,496.61

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Sales of Energy (Kwh MU)

Revenue from Sale of Power (In Crore)

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TELANGANA STATE

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Sri G. Raghuma Reddy, CMD, TSSPDCL received

“8th Innovation with Impact Awards for Discoms 2020”
Sri Kalvakuntla Chandrashekar Rao
Hon’ble Chief Minister of Telangana