2 3 4 5 6 7 8 NOTICE NOTICE is hereby given that the 31st Annual General Meeting 3. To declare dividend of ` 21.84 Crore on equity shares of the Members of Indian Renewable Energy Development of the Company for the financial year 2017-18. Agency Limited (IREDA) will be held on Wednesday, BY ORDER OF THE BOARD OF DIRECTORS September 5, 2018 at 12.30 P.M. at The Grand Ball Room, The Leela Palace, Chanakyapuri, New Delhi-110 023 to transact sd/- the following businesses: Place: New Delhi (Surender Suyal) Date: August 13, 2018 Company Secretary ORDINARY BUSINESS Membership No. A11900 Notes: 1. To receive, consider and adopt the audited standalone and consolidated financial statements of the Company 1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TO ATTEND for the financial year ended on March 31, 2018, along AND VOTE ON A POLL INSTEAD OF HIMSELF/HERSELF AND with the Reports of the Board of Directors and the THE PROXY NEED NOT BE A MEMBER OF THE COMPANY. Auditors thereon. PROXIES IN ORDER TO BE EFFECTIVE MUST BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS 2. To confirm the payment of interim dividend of ₹105 THAN 48 HOURS BEFORE THE MEETING. A BLANK PROXY FORM IS ANNEXED. Crore for the financial year ended on March 31, 2018. 2. Attendance Slip and Route Map to the venue of AGM are annexed hereto. IREDA funded 46 MW and 24 MW Wind project at Kadappa, Andhra Pradesh 9 INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LTD. (A Government of India Enterprise) CIN: U65100DL1987GOI027265 Regd. Office : Core-4 'A' First Floor, East Court, India Habitat Centre, Lodi Road, New Delhi – 110 003 Telephone: 011-24682206-19/Fax:91-11-24682202. Website: www.ireda.in Email: cmd@ireda.in ATTENDANCE SLIP 31st Annual General Meeting to be held on Wednesday, September 5, 2018 at 12.30 P.M. NAME OF THE ATTENDING MEMBER (IN BLOCK LETTERS) *Folio No. DP ID No.-Client ID NO. NO. OF SHARES HELD NAME OF PROXY (IN BLOCK LETTERS, TO BE FILLED IN IF THE PROXY ATTENDS INSTEAD OF THE MEMBER) I, hereby record my presence at 31st Annual General Meeting of the Company be held on Wednesday, September 5, 2018 at 12.30 P.M. Signature of Member/Proxy *Applicable in case of shares held in Physical Form. 10 PROXY FORM [Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies Management and Administration) Rules, 2014] INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LTD. (A Government of India Enterprise) CIN: U65100DL1987GOI027265 Regd. Office : Core-4 'A', First Floor, East Court, India Habitat Centre, Lodi Road, New Delhi – 110 003 Telephone: 011-24682206-19/Fax:91-11-24682202. Website: www.ireda.in Email: cmd@ireda.in Name of the member (s) : Registered address : E-mail Id: Folio No. and DP Id-Client Id: I/We__________________ being the member (s) of ……………………….. Shares of the above named company, hereby appoint 1. Name : ............................................................................ E-mail id : .......................................................................................... Address : ............................................................................ Signature : ................................................................. or failing him 2. Name : ............................................................................ E-mail id : .......................................................................................... Address : ............................................................................ Signature : ................................................................. or failing him 3. Name : ............................................................................ E-mail id : .......................................................................................... Address : ............................................................................ Signature : .......................................................................................... as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the Annual General Meeting of the Company, to be held on Wednesday, September 5, 2018 at 12.30 P.M. and at any adjournment thereof in respect of such resolution as are indicated below: Item No. Subject For Against 1. To receive, consider and adopt the audited standalone and consolidated financial statements of the Company for the financial year ended on March 31, 2018, along with the Reports of the Board of Directors and the Auditors thereon. 2. To confirm the payment of interim dividend of ₹105 Crore for the financial year ended on March 31, 2018. 3. To declare dividend on equity shares of the Company for the financial year 2017-18 Signed this ______ day of__________, 2018. Affix Revenue 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. 11 CHAIRMAN’S SPEECH ECONOMY According to the IMF World Economic Outlook Report, India has made progress on structural reforms in the recent past and the implementation of the Goods and Services Tax (GST) will help reduce internal barriers to trade, increase efficiency and improve tax compliance. While the Medium-Term Growth outlook for India is strong, an important challenge is to enhance inclusiveness, as per the report. Indian GDP growth is expected to remain robust at 7.3% for the current fiscal year and is forecasted to grow at 7.5% for 2019-20. The gross investment as a percentage of GDP is projected to increase from 30.6% in FY18 to 32.2% this year. This makes us believe that the long-awaited turnaround in investment demand is bound to happen. RENEWABLE ENERGY SCENARIO Dear Shareholders, As per India Brand Equity Foundation (IBEF), India accounts for approximately 4% of the total global electricity generation It gives me immense pleasure to welcome you all to the 31st and contributes 4.43% to the global renewable generation Annual General Meeting of your Company. Your Company capacity. The Indian Renewable Energy Sector is the second continues to be the leading financier in Indian Renewable most attractive renewable energy market in the world as per Energy Sector. This year the sector has gone through various the Renewable Energy Attractiveness Index 2017. The current changes (1) Advent of auction route in case of wind energy year showed a record generation of more than 100 billion units against the prevalent FIT, (2) Solar sector becoming more coming from RE capacities, representing 7.5% of the total organized , (3) Consolidation amongst the IPP segment (4) generation of electricity in India. New Players both in the IPP and manufacturing space (5) Further, considering commitment made at the COP-21 Strengthening of lending rates and commodity prices (6) summit, Renewable Energy & Energy Efficiency is set to play Move towards creation of off-shore wind energy projects an important role; as in the coming period, country would see & wind – solar hybrid, (7) Renewed interests in Waste to closure of old thermal power plants, leading to demand for Energy Segment, this is a great advantage for IREDA, as we RE sources. With advent of better technologies, we will also have always been at the forefront of newer technologies & see better capacity utilization factor, which is utility friendly expansion of RE sector. The Director’s Report and the Audited as the intermittency would get reduced; this would also get Financial Statement for the year ended March 31, 2018, duly complemented with hybrid options, storage/ancillary options certified by the Comptroller and Auditor General of India are too. Currently competitive tariffs registered by wind & solar also available with you, and with your consent, I shall take it are turning the main drivers in the RE space. as read. Solar Sector in India commissioned projects worth USD Your Company has been proactive in all facets of its activities 10 billion in 2017 alone. During January-March 2018, solar and continues to deliver a strong, uptrend financial and installations increased by 34% quarter-on-quarter. Also operational performance with growth on key fronts of world’s largest solar park named ‘Shakti Sthala’ was launched sanctions, disbursements and profits. At IREDA, in spite in Karnataka in March 2018 and will attract an investment of of major changes in the RE space, we have not lost focus approximately ₹16,500 Crore (US$ 2.55 billion). Further solar on our growth rate. Loans disbursal during the year stood installation in India is expected to threefold by 2020. at ₹8328.38 crore, registering an increase of 26.31% over the The major developments in the sector are highlighted previous year`s disbursement of ₹6593.49 crore; also IREDA below: sanctioned highest ever loans of ₹12130.01 crore, registering an increase of 18.93% over the previous year`s loan sanctions RE Capacity additions of ₹10199.01 crore. We as a team will strive to continue the India’s installed Capacity is 330.8 GW with generation mix path of the growth in the future also. of Thermal (66.2%), Hydro (13.6%), Renewable (18.2%) and 12 Nuclear (2.0%). Also the country’s installed Renewable Power clearance and a tax holiday of 10 years for offshore wind energy (grid interactive) generation capacity (including hydropower) generation is being offered to incentivize the private players. increased from 42.4 GW in FY07 to 116.7 GW in June 2018, Wind and solar are almost complementary to each other and which is 33.72% of the total installed capacity of 346.2 GW. hybridizing of two technologies would help in minimizing the India added record 11,788 MW of Renewable Energy capacity variability apart from optimally utilizing the infrastructure, in 2017-18 and 1,607.66 MW (grid interactive and off-grid) in including land and transmission system. Further increasing April-June 2018. A total of around 69,784 MW of renewable competition and increasing FDI players particularly in the solar energy capacity has been installed in the country as on sector have started bidding at lower prices with solar tariffs 31.03.2018 from all renewable energy sources which includes reaching record law. Therefore, Power Purchase Agreements 34,145 MW from Wind, 21,651 MW from solar, 4,486 MW already signed with the states have become an important part from Small Hydro Power and 9,502 MW from Bio-power, for the commissioned projects. The renegotiation of existing approximately. PPA may adversely affect the future investments. Power generation from renewable energy sources in India OUTLOOK AND CONCERNS reached 101.84 billion units in FY18 and 8.45 billion units in The Renewable Energy sector in India has huge potential April 2018. India has the fourth largest installed capacity of both for grid and off-grid solutions. While the former seeks wind power. Installed renewable power generation capacity to reduce the reliance of the grid on fossil fuels, the latter has has increased steadily over the years, posting a CAGR of 9.29% the potential to provide energy access to rural, far flung areas over FY 08 to 18. unserved and under-served by the grid. The success of the The Indian Renewable Energy Programme has received reverse auction-based bidding mechanism in lowering the increased recognition internationally in recent years with wind power tariffs has prompted the state-owned discoms to many countries evincing interest in cooperation with India for also move towards the auction route. promotion of new and renewable energy. Considering interest However, higher penetration of RE in the coming period, shown by Indian OEMs & IPPs in the RE space overseas, would lead to higher level of intermittency which also needs to IREDA is also getting geared up to look at funding projects be addressed through smart grid management, shifting of load in overseas geographies (viz. South Asia, South East Asia & pattern, better forecasting & scheduling mechanisms, creation certain countries that are signatories of International Solar of ancillary services, storage etc; Alliance (ISA) IREDA’S OPERATIONS IN 2017-18 Fresh investments in clean and renewable energy in the country reached US$11 billion in 2017. In the first half of PERFORMANCE HIGHLIGHTS 2018, investments in clean energy increased 22% year-on-year. I am delighted to share with you that your Company has India’s power demand has been rising at a fast pace. In the shown progress in various facets during the year and the same Union Budget 2018-19, `3,762 crore (US$ 581.09 million) may be perceived from the following performance parameters has been allocated for grid-interactive renewable energy that substantiates the operational and functional excellence: - schemes and projects. In addition to this, the import duty The Gross Income of your Company increased to ₹1,780.02 on components used in making solar panel has been done Crore registering a growth of 20.14% over the previous year away with. In India 60 solar cities will be developed as part of gross income of ₹1481.67 Crore. The Profit Before Tax (PBT) Ministry of New and Renewable Energy’s Solar Cities program increased to ₹560.75 crore at the end of the financial year 2017- which is expected to give a boost to Renewable Sector in the 18 registering an increase of 6.17% over the previous year PBT country. of ₹528.18 crore. Profit after tax (PAT) increased to ₹393.20 The Scheme for Development of Solar Parks and Ultra Mega crore at the end of the financial year 2017-18 registering an Solar Power Projects has enhanced its target of capacity from increase of 7.72% over the previous year PAT of ₹365.02 crore. 20,000 MW to 40,000 MW with aim to set up 50 solar parks by Loans sanctioned during the year by way of sole, co-financing 2019-20 with Central Government financial support of ₹8,100 and consortium financing arrangements are expected to result Crore. The total capacity when operational will generate 64 in a capacity addition of 3007.13 MW against 2477.60 MW in billion units of electricity per year which will lead to abatement last year. of around 55 million tonnes of CO2 per year. During the year, your company has successfully raised ₹1950 To promote deployment of Offshore Wind Farms, the National Crore (equivalent to USD 300 Million) from Off-Shore Market Offshore Wind Energy Policy has been framed. To fasten the in the form of Green Masala Bonds. Your Company’s Green process of implementation of the projects single window Bonds are listed on the London Stock Exchange and Singapore 13 Stock Exchange. The issue was oversubscribed of MTN set up which has resulted in lower tariff on account of mitigation of i.e. equivalent to USD 300 Million and Masala Bonds were payment risk from the power offtakers. In case of any delay allotted to highest ever 49 number of investors. I am proud to in payment to SPDs from power offtaker, three tier Payment inform that your company’s Masala Bonds are the first which Security Mechanism will trigger which has the options to make were listed at International Security Market, London. The issue payments to SPDs through a) Letter of Credit b) Payment was in accordance with ‘Green Bond framework’ formulated Security Fund i.e. IREDA guarantee facility and 3) Payment by IREDA and has been verified by approved verifier. from Govt. of Madhya Pradesh. So, in case of any delay in payments, if SPD fails to recover its dues from Letter of Credit Your Company also raised resources aggregating to ₹203.10 option under the first tier of Payment Security Mechanism as Crore through drawls under the lines of credit signed with per Power Purchase Agreement, it subsequently triggers the multilateral and bilateral agencies viz. World Bank (IBRD) option of payment from Payment Security Fund(PSF) i.e. the second line of credit and ADB second line of credit. facility extended by IREDA to RUMSL so as to clear dues of IREDA signed a new Line of Credit (LoC) of USD 100 Million SPDs. RUMSL has to pay back to IREDA within 30 days of with World Bank which includes USD 75 Million-IBRD trigger of PSF, from the payment deposited by offtaker or else Loan and USD 23 Million-Clean Technology Fund (CTF) RUMS will have to raise demand for payment to GoMP (viz. Loan and USD 2 Million CTF Grant. Another, Line of Credit the third tier) within a period of next 15 days. This facility (LoC) of EUR 150 Million with European Investment Bank provided by IREDA may also be utilised voluntarily to avail as EIB Second Line of Credit for a period of 15 years on Non- benefit of early payment rebate or to avoid late payment Sovereign Basis was signed. surcharge. In this case, RUMSL has to pay back to IREDA within 9 months of trigger of PSF or else RUMS will have to New Initiatives raise demand for payment to GoMP within a period of next I would like to share with you, some of the initiatives your 15 days. Thus IREDA facility will play an important role in Company undertook during the year to meet the growth providing payment risk mitigation to the project developers. aspirations in our business operations. CORPORATE SOCIAL RESPONSIBILITY New Financial Products/Schemes: Various Fund and Non- fund based instruments to supplement project financing and Your Company has a dedicated CSR unit in compliance with to add more business avenues have been introduced. The new the Department of Public Enterprises (DPE) guidelines to schemes introduced/modified during the year are: undertake CSR activities of the company. During the FY 2017- 18, your company made a provision of ₹10.33 crore towards a. Scheme for financing of Transmission projects with an CSR activities at the rate of 2% of the average net profit of exposure cap of 20% of the project cost to any single the company earned during the three immediately preceding transmission project, and IREDA sanctioned Rs 500 Cr financial years. of such projects in FY18; b. Loan Repayment and Moratorium Period under During the FY 2017-18, projects worth of ₹11.35 Crore were “Securitization of Future Cash Flows”, shall be approved and your Company spent ₹3.61 crore during the maximum of 10 years for all sectors provided repayment FY 2017-18 on CSR activities for the projects which were period shall not be more than balance life of PPA less 5 completed/ongoing during the year (including 1.36 Crore paid years. for the projects which were sanctioned during the year 2017- c. Repayment period for Hydro Projects has been 18). extended upto 20 years (excluding construction and During the year, your Company has undertaken CSR initiatives Grace period) in the fields of community development, empowerment of d. Line of credit for establishing roof-top solar projects communities through education, health care & sanitation, Collaborating with other Institutions: Your Company has environment protection, promotion of green and energy signed an agreement with Rewa Ultra Mega Solar Limited efficient technologies and development of backward regions. (RUMSL) for development of Shared Infrastructure of 750 MW Rewa Solar Park and 250 MW Mandsaur Solar Park in MOU RATINGS AND AWARDS Madhya Pradesh under World Bank LOC of USD 100 million I am happy to share with you that your Company is expected to available with IREDA and provided financial assistance of be rated as “Excellent” by Government of India (GoI) based on ₹210.62 crore. In addition, Guarantee facility of Rs.144 Crore your Company’s performance against the MoU targets signed has been sanctioned to Rewa Ultra Mega Solar Limited for with the Ministry of New & Renewable Energy (MNRE) for providing payment security to the Solar Power Developers in fiscal 2017-18 by GoI. I would like to share that your company Rewa Solar Park under three tier Payment Security Mechanism has been conferred with: 14 ➢ Golden Peacock Award for Corporate Ethics for the ACKNOWLEDGEMENTS year 2017 I would like to place on record my personal gratitude and ➢ MSME Banking Excellence Awards 2016 your Company’s grateful appreciation for the Government ➢ CBIP Award for outstanding contribution for of India particularly Honourable Prime Minister of India, Development in Renewable Energy Honourable Minister of State for Power and New & Renewable ➢ Hindustan Ratna PSU award-2017 in the category of Energy, Secretary MNRE, Additional Secretary, Joint Secretary, Best financial performance (Mini Ratna Company) Financial Advisor and the other officials of the Ministry of New ➢ India Pride Award 2017-18 under Mini Ratna Category & Renewable Energy, Niti Ayog, Ministry of Finance & other by Dainik Bhaskar Ministries / Departments of the Government of India, Office of ➢ Best Overall Performance (Financial) Award by the Comptroller & Auditor General of India, Statutory Auditors, Governance Now Reserve Bank of India and other Regulatory Authorities for the ➢ Infosec Maestros Award for the year 2018 for excellence continued guidance, co-operation and assistance. in IT space. I am thankful to Japan International Cooperation Agency HUMAN RESOURCES DEVELOPMENT (JICA), Kreditanstalt fur Wiederaufbau (KfW), Asian The Company gives utmost importance to capacity-building and Development Bank (ADB), Agence Francaise de Development well-being of its employees. In this direction, Training and Human (AFD), European Investment Bank (EIB), International Finance Resource Policy of the Company aims to strengthen the business Corporation (IFC), USAID, World Bank and other financial skills and competence of the employees for better performance and institutions, agencies and investors for the continued support productivity. Further, trainings and workshops directed towards and co-operation of international financial institutions. spiritual, health and attitudinal development of employees are also My very special thanks go to the bankers, bond-holders, regularly conducted. Your company is complying 100% online domestic financial institutions, investors and clients for Appraisal Reports in respect of their employees. reposing the continued confidence and trust in your Company. CORPORATE GOVERNANCE Every meeting of the Board of Directors is an evidence of the Your Company’s philosophy of Corporate Governance stems valuable insights my colleagues provide, helping me to take the from its belief that the spirit of good governance lies in adherence important and critical decisions. They are and will continue to be to highest standards of transparency, accountability, ethical a guiding force for me and your Company. I would like to place business practices, compliance of law in true letter and spirit, on record the valuable contribution made by my colleagues on adequate disclosures, corporate fairness, social responsiveness the Board, past and present, in the growth of your Company. and commitment to the organization to meet stakeholder’s The heights that your Company has achieved is largely aspirations and societal expectations. The Company has been the result of the complete commitment, faith, loyalty and adopting and adapting the best practices that are followed in excellent teamwork shown by employees. They have skillfully the area of Corporate Governance. Your Company has been shouldered responsibilities, worked hard and produced timely complying with the requirements of Corporate Governance as results that are seen in the financial results. I, on behalf of the stipulated by the Department of Public Enterprises (DPE) for Board and on your behalf, place on record our appreciation for Central Public Sector Enterprises (CPSEs). contribution of the employees to the growth of the company FUTURE STRATEGIES and look forward to their continued commitment and support towards the progress of the Company. IREDA will continue its trajectory of registering growth, through innovation and repositioning in the ever changing space. May I now request that the Directors’ Report, the Audited Balance Sheet, the Profit and Loss Account and Auditors’ As part of providing its support, your Company to make Report for the year ended 31st March 2018, be adopted. available adequate and affordable resources for the sector. Your Company will continue its efforts with various international Thank you, and multilateral lenders for new Lines of Credit to meet the resource needs of the sector and also shall make further issue of Green Bonds in the International and Domestic Market to KULJIT SINGH POPLI garner capital for onward lending. Chairman and Managing Director Your Company would develop new products and schemes that DIN:- 01976135 address the needs of the market. This would, I am sure, lead Dated: 30th August 2018 to significant increase in the market share of your Company. Place: New Delhi 15 DIRECTORS’ REPORT To the Members, 1.1 Financial Highlights Your Directors are pleased to present the 31st Annual Report  During the Financial Year 2017-18, Gross Income on the performance of your Company for the Financial Year of your Company increased to ₹1,780.02 Crore, (FY) ended March 31, 2018 along with the Audited Financial registering a growth of 20.14% over the previous year’s Statements including Consolidated Financial Statements, Gross Income of ₹1,481.67 Crore. Auditor’s Report, Secretarial Auditor’s Report & Comments of Comptroller and Auditor General of India.  Profit Before Tax (PBT) increased to ₹560.75 Crore at the end of the financial year 2017-18, registering 1. FINANCIAL PERFORMANCE an increase of 6.17% over the previous year’s PBT of ₹528.18 Crore. The highlights of the financial performance (standalone) of the Company for the FY 2017-18 together with comparative  Profit After Tax (PAT) increased to ₹393.20 Crore position of the previous financial year, are as under: at the end of the financial year 2017-18, registering an increase of 7.72% over the previous year’s PAT of (₹ in Crore) ₹365.02 Crore. Sl. Particulars 2016-17 2017-18 No.  Net Worth of the Company increased to ₹2536.58 Crore (including Capital Grant of ₹106.77 Crore) at 1. Loans Sanctioned 10199.01 12130.01 the end of the financial year 2017-18, registering an 2. Loans Disbursed 6593.49 8328.38 increase of 1.06% over the previous year’s Net Worth of ₹2510.01 Crore. 3. Net Worth 2510.01 2536.58  Company’s Capital Risk Adequacy Ratio (CRAR) stood 4. Gross Income 1481.67 1780.02 at 18.05% as at the end of the year under report which 5. Finance Cost 725.94 1025.22 is above the permissible limit of 15% prescribed under RBI Norms. 6. Profit before Tax 528.18 560.75 7. Less: Current Tax 155.58 105.19  During the financial year under review, IREDA disbursed 81.07% of total funds available. 8. Deferred Tax 7.58 62.36 1.2 Fund Mobilization 9. Profit after Tax (6-7-8) 365.02 393.20 10. Add: Balance in Profit & loss 0.15 0.37  During the financial year, your Company raised a sum account of ₹1950 Crore (equivalent to USD 300 Million) by way of IREDA Green Masala Bonds from the International 11. Net Profit Available for 365.17 393.57 Debt Market for a period of 5 years. appropriation (9+10)  During the financial year, your Company raised Less : Appropriation resources aggregating to ₹203.10 Crore through various 12. Proposed Dividend and 125.50 126.84 Lines of Credit from overseas sources, viz. World Bank Interim Dividend (IBRD) and ADB-II. 13. Corporate Dividend Tax 25.55 25.82  IREDA signed Line of Credit (LoC) of USD 100 Million from World Bank, which includes USD 75 14. Transfer to Debenture 46.29 46.29 Million-IBRD Loan for a period of 19 years, USD 23 Redemption Reserve (DRR) Million-CTF Loan for a period of 40 years and USD 2 15. Transfer to Special Reserve 116.96 78.19 Million-CTF grant on Sovereign basis. 16. Transfer to General Reserve 50.50 116.00  IREDA signed Line of Credit (LoC) of EUR 150 Million from European Investment Bank as EIB Second Line of 17. Balance carried over to 0.37 0.43 Credit for a period of 15 years (w.e.f date of drawl of Balance Sheet loan) on Non-Sovereign Basis. 16 IREDA and Rewa Ultra Mega Solar Limited (RUMSL) signed an agreement on 31.01.2018 for financing the shared infrastructure of two large Solar Parks in Madhya Pradesh. The agreement was signed by Shri S K Bhargava (R), Director (Finance), IREDA and Shri Avaneesh Shukla(L), Executive Engineer, RUMSL in the presence of Shri Upendra Tripathy, Interim Director General, International Solar Alliance (ISA), Shri K.S. Popli, CMD, IREDA, Shri Dilip Nigam, Advisor, MNRE. 1.3 Other Highlights an increase of 18.93% over the previous year’s amount of ₹10,199.01 Crore. Loans disbursals during  In pursuance to Cabinet Committee on Economic the financial year 2017-18 were ₹8,328.38 Crore, Affairs approval for the issuance of 13.90 Crore fresh registering an increase of 26.31% over the previous Equity Shares of ₹10 each through an Initial Public year’s disbursement of ₹6593.49 Crore. The sector-wise Offer (IPO), Draft Red Herring Prospectus (DRHP) details of sanctions and disbursements during the FY has been filed by your Company with SEBI and Stock 2017-18 are as under: Exchanges on December 22, 2017 and the In-Principle (₹ in Crore) approval of the SEBI has also been received. Sectors Sanctions % Disbursements* %  Projects sanctioned by your Company by way of sole, Wind Power 3369.13 27.78 2823.49 33.90 co-financing and consortium financing during the year, Solar Energy 4630.91 38.18 2746.31 32.98 are expected to result in Renewable Energy capacity Short Term Loan 2780.00 22.92 2250.00 27.02 addition of 3007.13 MW. Hydro Power 510.49 4.20 330.20** 3.96 (including SHP)  IREDA has signed an agreement with Rewa Ultra Mega Biomass & Co- 164.00 1.35 59.25 0.71 Solar Limited (RUMSL) for development of Shared Generation Infrastructure of 750 MW Rewa Solar Park and 250 MW Waste to Energy 317.60 2.62 0 0 Mandsaur Solar Park in Madhya Pradesh under World Guarantee Assistance 284.00 2.34 0 0 Bank LOC of USD 100 million available with IREDA Scheme and provided financial assistance of ₹210.62 Crore. Bridge Loan against 72.58 0.59 49.11 0.59 GBI/Capital Subsidy to In addition, Guarantee Facility to RUMSL amounting channel partners and to ₹144 Crore towards 750MW Rewa Solar Park as a loan against pending part of Three Tier Payment Security Mechanism was energy bills provided to the Solar Project Developers by RUMSL. Miscellaneous 1.30 0.02 70.02 0.84 (Biomass Gasification + 2. LENDING OPERATIONS NCEF+Manufacturing) Total 12130.01 100.00 8328.38 100.00 2.1 Sanctions and Disbursements *Amount of disbursements includes the projects sanctioned during the financial year 2017-18 and previous years. During the financial year 2017-18 your Company sanctioned loans of ₹12,130.01 Crore, registering **Inclusive of ₹ 291.06 Crore disbursed for Small Hydro Projects. 17 IREDA funded 14.5 MW Canal Bank Solar PV Project in District Dehradun, Uttarakhand Cumulative sanctions and disbursements as on March 31, 2018 2.2 Capacity Sanctioned stood at ₹60,961.90 Crore and ₹36,118.58 Crore respectively. The details of cumulative state-wise and sector-wise sanctions The loans sanctioned during the year 2017-18, and disbursements, are provided in Annexures I to IV. including co-financed projects/take over loans would support capacity addition of 3007.13 MW. Sector During the year, your Company has introduced new schemes wise projected addition of Capacity through IREDA and modified existing schemes also, to sustain growth of financed & co-financed projects is indicated below: IREDA’s market share in Renewable Energy Financing. These include: Sectors Capacity (MW) a. Scheme for financing of Transmission projects with an Solar Energy 1426.98 exposure cap of 20% of the project cost to any single Wind Power 1426.10 transmission project; Co-generation 72.00 b. Loan Repayment and Moratorium Period under Hydro Power 40.55 “Securitization of Future Cash Flows”, shall be Waste to Energy 41.50 maximum of 10 years for all sectors provided repayment Total 3007.13 period shall not be more than balance life of PPA less 5 years. 2.3 Capacity Commissioned c. Modified scheme with respect to Prepayment premium During the FY 2017-18, IREDA financed projects at the time of reset (including reset on COD) shall not resulted in total capacity addition of 2105.70 MW, as be charged for prepayment amount up to 25% of the indicated below: Loan Outstanding or ₹50 Crore, whichever is lower. Sectors Capacity (MW) d. Additional interest of 0.25% p.a. over and above applicable rate of interest rate on total loan for the Solar Energy 1546.00 project whose repayments periods are more than 12 Wind Power 381.30 years upto 15 years, has been removed. Hydro Power 72.50 e. Repayment period for Hydro Projects has been Cogeneration 105.90 extended upto 20 years (excluding construction and Total 2105.70 Grace period) 18 3. SOLAR POWER PROJECT Assets through, follow up meetings, TRA Monitoring, one-time settlement (OTS), Reschedulement, action The company entered into an MOU with Solar Energy under the SARFAESI Act 2002, and recovery through Corporation of India (SECI) in the year 2014-15 for Debt Recovery Tribunal (DRT) etc. continued during implementation of 50 MW Solar Project of IREDA the year and resulted in recovery of an aggregate situated at Kasargod, in the state of Kerala. The amount of ₹45.79 Crore from Non-Performing Assets complete 50MW plant was commissioned in the (NPAs) including amount recovered from written-off month of September 2017 and is generating energy. assets amounting to ₹ 6.93 Crore. The PPA has been signed between IREDA and Kerala State Electricity Board on 31.03.2017 @ ₹4.95 per The operation of renewable energy projects is seasonal unit and the same is awaiting approval from Kerala in nature and also due to financial health of DISCOMS State Electricity Regulatory Commission (KSERC). to whom the power generated from the project is being However, KSERC has ordered an interim tariff of sold by the project developers, there has been delay ₹3.90/unit for billing purpose. The plant is expected in payments of IREDA’s dues by some of the project to be handed over by the developer till September developers classified as standard assets. The overdue 2018. Accordingly, income from Generation activity loans to total loans due as on 31st March, 2018 stood at amounting to ₹20,03,36,920 has been accounted 1.05%. for during the year in respect of 49,685,952 units of energy generated upto March 2018. During the year, 13 loan accounts were rescheduled and 7 One Time settlement Proposals were sanctioned 4. RECOVERY & STRESSED ASSETS MANAGEMENT by IREDA, out of which 3 accounts were settled as per OTS sanctioned and remaining accounts will be settled As part of the Company`s mandate and developmental during next financial year. focus, your Company finances Renewable Energy projects which have inherent technological and other Your company has already identified the cases in which risks. As a result, the Net Non-Performing Assets suitable actions through National Company Law (NNPAs) was 3.84% as against the previous year’s figure Tribunal (NCLT) are to be taken for their resolutions of 3.77%. Recovery action against Non-Performing and also filed two applications in NCLT. European Investment Bank (EIB) and Indian Renewable Energy Development Agency Ltd. (IREDA) signed a loan agreement on 10.03.2018 for a 2nd Line of Credit (LoC) of Euro 150 million on non-sovereign basis. The agreement was signed by Shri K S Popli, CMD, IREDA and Mr. W. Hoyer, President, EIB in the presence of Shri R.K.Singh, Hon’ble MOS (I/C) for Power and New & Renewable Energy, Shri. Anand Kumar, Secretary, MNRE. 19 5. RESOURCE MOBILIZATION 5.2 IREDA Green Masala Bonds The long term Borrowings of your Company stood During the year, IREDA has successfully raised USD at ₹14,960.41 Crore as on March 31, 2018 as against 300 Million from Off-Shore Market in the form of ₹13,048.83 Crore in the previous year. Green Masala Bonds. The Bonds have been issued at a coupon rate of 7.1250 per cent and yield of 7.23 5.1 External Resources per cent which was lower than FIMMDA bench mark During the year, external sources (Lines of Credit) of rate of 7.4013% applicable for similar rated CPSEs ₹203.10 Crore (USD 31.19 Million) was raised from on the date of issue in the domestic market. Your World Bank (IBRD) and Asian Development Bank Company’s Green Bonds are listed on the London (ADB II). Stock Exchange and Singapore Stock Exchange. The issue was oversubscribed of MTN set up i.e. equivalent Further, during the year, two Foreign Currency Loan to USD 300 Million and Masala Bonds were allotted to Agreements were executed for Fresh Lines of Credits highest ever 49 number of investors. IREDA is proud (LOC); to inform that your company’s Masala Bonds are the • IREDA signed Line of Credit (LoC) of USD 100 first which were listed at International Security Market, Million with World Bank on 20th September London. The issue was in accordance with ‘Green 2017, which includes USD 75 Million-IBRD Bond framework’ formulated by IREDA and has been Loan for a period of 19 years, USD 23 Million- verified by approved verifier. CTF Loan for a period of 40 years and USD 2 Your company’s Green Bonds have been certified by Million-CTF grant on Sovereign basis; the Climate Bond Initiative, London. The Standard • IREDA Signed LoC of EUR 150 Million with Chartered Bank, HSBC, Barclays Bank, Axis Bank, European Investment Bank on 10th March 2018 as ICICI Bank and YES Bank were the Joint Lead EIB Second Line of Credit for a period of 15 years Managers to the issue. The proceeds from the Bonds (w.e.f date of drawl of loan) on Non-Sovereign have been allocated for financing RE projects including Basis. re-financing in eligible projects. Mr.K. S. Popli, CMD, IREDA together with Mr. Anand Kumar, Secretary, MNRE, and Mr. Jo Johnson, Minister of State for Universities, Science, Research and Innovation of United Kingdom, and Mr.Xavier R. Rolet, CEO of London Stock Exchange Group along with senior dignitaries at opening of trading of IREDA Masala Bonds, London on 29.09.2017. 20 in the FY 2016-17 on private placement basis in the domestic market. During the financial year 2017-18 Cabinet Committee on Economic Affairs has given approval to IREDA to raise Bonds for the balance amount of ₹2360 Crore however, MNRE decided not to raise fund considering the prevalent market conditions. 6. SHARE CAPITAL The authorized and paid-up share capital of your Company as on 31st March 2018 stood at ₹6000 Crore and ₹784.60 Crore respectively. The entire paid- up share capital is held by the Government of India. There is no change in the paid up share capital of your Company during the year. 6.1 Initial Public Offer (IPO) Presently, the entire paid up equity share capital of the Mr. K. S. Popli, CMD, IREDA addressing at the time of Listing of Company amounting to ₹784.60 Crore is held by the Masala Bonds at London Stock Exchange on 29.09.2017. Government of India and its Nominees. During the FY 5.3 GOI Fully Serviced Bonds 2017-18, the Cabinet Committee on Economic Affairs approved issue of 13.90 Crore fresh equity shares of Your Company was allocated by the Government of ₹10 each through an Initial Public Offer (IPO). In this India, an additional fund raising of ₹4000 Crore for regard, Draft Red Herring Prospectus (DRHP) was filed the FY 2016-17 on behalf of Ministry of New and on December 22, 2017 with SEBI and Stock Exchanges Renewable Energy (MNRE). The fund was to be raised and the In-Principle approval of the SEBI has also been from the bond market as “GOI Fully Serviced Taxable received. Yes Securities (India) Limited, SBI Capital bonds”. Out of said allocation ₹1640 Crore were raised Markets Ltd., IDBI Capital Markets & Securities Limited Group Photograph of Secretary, MNRE, Minister of State for Universities, Science, Research and Innovation of United Kingdom, CMD, IREDA, other senior officials of IREDA, London Stock Exchange and Merchant Bankers of Masala Bonds. 21 Shri K.S. Popli, CMD IREDA participated in 4th OECD Green Investment Financing Forum on 24-25th October, 2017 at Paris, France. and Elara Capital Markets Limited were appointed as ₹105 Crore was approved by the Board of Directors the Book Running Lead Managers (BRLMs) for the of the Company and paid to its shareholder, viz., the said issue. Further, M/s. Cyril Amarchand & Mangaldas Government of India through the MNRE. Further your was appointed as Domestic Legal Counsel and an Directors have recommended a dividend of ₹21.84 International Legal Counsel was also appointed by Crore for the financial year 2017-18, aggregating Domestic Legal Counsel for the issue. dividend equivalent to 5% of the net worth, subject to the approval/confirmation of the shareholders in its 6.2 Sub-Division of Equity Shares 31st Annual General Meeting. Pursuant to the resolution passed by the Shareholders The dividend paid in the last two years are as under: in the 16th Extra Ordinary General Meeting of the Company held on November 28, 2017, the authorized (₹ In Crore) and paid up share capital of the Company was FY 2017 FY 2018 restructured by way of sub‐dividing the face value of Interim Dividend 100.00 105.00 equity shares from ₹1000/‐ (Rupees One Thousand only) each to 100 (Hundred) Equity Shares having face Final Dividend 25.50 21.84 value of ₹10/- (Rupees Ten) each fully paid up. Total Dividend 125.50 126.84 Consequent upon the sub-division, new Share 8. CREDIT RATING Certificates have been issued to the shareholders of your Company. During the Financial Year 2017-18, M/s. ICRA Ltd. and M/s Credit Analysis and Research Ltd have accorded 7. DIVIDEND a long-term Credit Rating of “AA+” while M/s India Ratings and Research Private Limited assigned “AAA” During the year 2017-18, an Interim Dividend of on standalone basis for the Taxable Bonds. 22 For the rating of existing Bonds, the rating of ‘AAA (SO)’  Credit Risk and ‘AA+’ was retained by the respective rating agencies who had assigned the original rating at the time of issue of Credit risk is the inherent risk in the lending Bonds. However, M/s India Ratings and Research Private operation and arises from lowering of the credit Limited upgraded the rating from “AA+” to “AAA”. For quality of the borrowers and the risk of default the rating of GoI Fully Serviced Bonds, the rating of ‘AAA in repayments by the borrowers. A robust credit (Stable)’ was retained by the respective rating agencies appraisal system is in place for the appraisal of the viz. India Ratings, ICRA & CARE who had assigned the projects in order to assess the credit risk. The process original rating at the time of issue of Bonds. involves appraisal of the projects, rating by external agencies and assessment of credit risk, appropriate Your Company enjoys “Baa3” International structuring to mitigate the risk along with other Credit Rating from Moody’s Investors Service and credit risk mitigation measures. “BBB-” from Fitch Ratings Inc., which is equivalent to sovereign rating of India.  Market Risk 9. ISO CERTIFICATION Market risk is the possibility of loss majorly due to fluctuation in the interest rate and foreign currency IREDA is an ISO 27001:2013 based Information exchange rates. In order to mitigate the interest rate Security Management System Certified Company. The risk, the company periodically reviews its lending rates implementation of these standards enable compliance of based on market conditions and incremental cost of various laws, regulations and contractual requirements borrowing. related to information security, as required under the IT Act. The compliances of various security measures  Liquidity Risk as required under the above Standards enables the Liquidity Risk is the inability to meet short term and Company to put in place a robust secured network for long term liabilities as and when they become due. data processing and information flow. Liquidity is monitored by Liquidity gap analysis. The The Company is also IS/ISO: 9001:2015 Certified by Liquidity risk is managed by a number of strategies the Bureau of Indian Standards (BIS) and is committed such as long term resource raising, resource raising to continuous improvement in its Quality Management based on projected disbursement and maturity profile. System encompassing various procedures and 10.2 Asset Liability Management processes. Your Company has constituted an Asset Liability To familiarize the employee on IT Infrastructure, Management Committee (ALCO) chaired by the a booklet on IT Infrastructure was launched. IT CMD for monitoring various risks such as Liquidity Department, over the last few years, has created risk, Interest rate risk and the Currency risk. The state-of-the-art IT infrastructure and has taken up ALCO takes/reviews major decisions affecting the digitization on a considerable scale to automate the business and working results, ALM mismatches, business processes, online processing of various budgeting, resources etc. Operational processes have requests and to enable efficient and timely sharing of been streamlined and critical processes are being information. monitored at senior level to ensure consistency, 10. RISK MANAGEMENT control and oversight. Your Company follows a reporting system of Asset Liability Management 10.1 Enterprise-Wide Integrated Risk Management to review the mismatches, accordingly remedial measures are taken. Your Company has adopted an Integrated Risk Management Policy and all the business activities 10.3 Foreign Currency Risk Management undertaken in your company, fall within the said policy framework. Your Company has in place a process to Exchange rate movements may adversely impact identify and mitigate various risks associated with the the value of foreign currency borrowings. A Foreign business and documents them in Standard Operating Exchange and Derivatives Risk Management Policy, Procedures. These are periodically reviewed to ensure a Forex Management Committee is in place in your that the key risks are well identified and controls are Company and hedging instruments are used to lower/ put in place. Brief description of the risks is as follows: mitigate the currency and interest rate risks. 23 11. PERFORMANCE OF JOINT VENTURE COMPANY sanctions, loan executions and on 1st disbursement. The & CONSOLIDATED FINANCIAL STATEMENTS application enables the customers to provide their feedback through Mobiles and Emails as well. M/s. M.P. Wind Farms Limited (MPWL), a Joint Venture Company, was incorporated in collaboration A Booklet on IT Infrastructure at IREDA has also with IREDA, M.P. Urja Vikas Nigam Ltd (Government been launched during the year comprising information of Madhya Pradesh Enterprises) and Consolidated across all modules developed in-house, hardware Energy Consultants (P) Limited, a private sector created, networking arrangements, outsourced Company with present shareholdings of 24%, 25% and applications etc., to familiarize the employees on the IT 49.5% respectively and balance by others. The paid-up infrastructure created at IREDA and provide an insight capital of MPWL stood at ₹70 Lakh which includes into the IT initiatives and developments taken up. your Company’s initial subscription of ₹12.00 lakh and bonus share of ₹4.80 Lakh against the authorized share 12.1 Dissemination of Information capital of ₹100 Lakh. MPWL has reported Profit after Your Company continued to create awareness of Renewable tax of ₹14.21 Lakh for the year. No dividend was paid Energy technologies, Energy Efficiency and Conservation for the financial year 2017-18. The performance of the (EEC) and also its financial assistance schemes by hosting M/s MPWL does not affect the performance of your all its publications on its website. A monthly journal company being very small magnitude of revenue and “Energy Next” exclusively dedicated to Clean Energy is profitability of M/s. M.P. Wind Farms Limited. continued to be supported by your Company. Pursuant to Section 129 of the Companies Act, 12.2 Customer Relations 2013 and Accounting Standard-21 on Consolidated financial statements read with Accounting Standard-23 Your Company underlines customer satisfaction as on accounting for investment in associates and an important role for significant growth of business. Accounting Standard-27 on financial reporting of The Company continued with its customer-friendly interest in joint ventures, the Company has prepared approach in day-to-day dealings. Your Company has Consolidated Financial Statements, which shall be separate grievance redressal systems for dealing with laid before the ensuing 31st Annual General Meeting the problems of the customers and the public at large. along with the Standalone Financial Statements of the The systems are duly notified and are easily accessible. Company. Pursuant to sub-section (3) of Section 129 The company also has a notified Citizen’s Charter to of the Act, a statement containing the salient features ensure transparency in its work activities. Besides that, of the financial statements of joint venture in Form the problems of Borrowers are redressed by a response AOC-1 forms part of this Annual Report. The Audited mechanism of prompt hearing by the senior executives. Financial Statements including the consolidated An Online Customer Portal is available on the website financial statements are available on the website of the to enable borrowers & vendors to interact with IREDA Company at www.ireda.in. and to provide them real-time information with respect to their application status/ disbursements/ repayments/ 12. RESEARCH AND BUSINESS DEVELOPMENT bill payments etc. The Portal covers all aspects related ACTIVITIES to customers and acts as a single-point source for up- Your Company continued its efforts for various to-date real-time information to the customers with research/development activities in renewable energy respect to their various requests. and for its business development. For business 13. SOCIAL COMMITMENT development, your Company has now taken a step further towards digitization and is now accepting Loan 13.1 Conservation of Energy: Ecology & Environment Applications in the Online mode only to facilitate the customers to apply for the loan assistance conveniently Your Company continued to be committed to and at the same time, make the process transparent and Renewable Energy development in the country. It is system driven. engaged in financing of Renewable Energy and Energy Efficiency projects only which have a positive impact As a step towards facilitating the customers to provide their on environment besides reducing pollution. IREDA feedback on their experience while interacting with IREDA ensures that the clients comply with the relevant for various processes, an Online Feedback Application environmental and social policies, laws and regulations has also been developed to seek their feedback on loan of the Government of India and state governments 24 A Guest lecture and discussion on the topic “Women Empowerment through Spirituality” by Rajyogini Pushpa Behn, eminent Spiritual Guide & Mentor, was organized on the occasion of Women’s Day on 08.03.2018. and remain responsive to environmental and social Management System (ESMS) that is applicable to all the requirements of international lenders wherever IREDA funded projects. The ESMS manual has been International Lines of Credit are involved. hosted on IREDA’s website. The objective of ESMS is to ensure the environmental and social sustainability 13.2 Technology Absorption of the projects and to mitigate any negative impacts Your Company is engaged in financing of Renewable that the projects might have. The environmental and Energy and Energy Efficiency projects and does not own social screening of the projects is being conducted any manufacturing facility as on the date of this report, at the time of project appraisal. To ensure smooth hence, the subject matter is not applicable. However, implementation of the system, a common ESMS the Company continued to use technology intensively training was conducted for all the technical staff. This in its operations during the year under review and there was followed by sector specific hands on trainings. are no significant particulars relating to technology Environmental & Social Safeguard Unit (ESSU) of the absorption under the Companies (Accounts) Rules, Company ensures compliance with E&S requirements 2014 regarding disclosure of particulars in the Report of all its international lenders such as EIB, KfW, ADB, of Board of Directors. AFD, JICA, etc. With the enhanced environmental and social safeguards, some of the investment risks can be 13.3 Foreign Exchange Earnings and Outgo mitigated. At the same time, it helps in building the During the year there were earnings to the tune of credibility of the projects amongst the local, national ₹1.61 Crore on account of Foreign Currency deposits, and international community. as against Foreign Exchange outgo aggregating to 14. CORPORATE SOCIAL RESPONSIBILITY ₹123.51 Crore on account of travelling, bond issue expenses, interest and commitment expenses. In Your Company strongly believes in an all-inclusive addition to this, hedging cost of ₹322.71 Crore paid in economic growth and thus, implemented its CSR and Indian currency. During the period under review, the Sustainability Policy with all its earnest and zeal. The Company has mobilized (inflows) ₹203.10 Crore from Company’s CSR initiatives are based on this principle various multilateral and bilateral financial institutions and resonate with Government of India Goals as well and the Company also mobilized ₹1950 Crore from the as the Sustainable Development Goals outlined in international market in the form of Masala Bond. its policy. Over the years, your Company has been focusing on sustainable development encompassing 13.4 Environment Sustainability economic, environmental and social imperatives that IREDA, being a responsible financing institution, has cover businesses as well as communities around us. developed a comprehensive Environmental and Social The thrust of CSR and Sustainability is on community 25 development, empowerment of communities through education, health care & sanitation, environment protection, promotion of green and energy efficient technologies and development of backward regions as per the provisions of Section 135 of the Companies Act 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014. To oversee the activities of CSR, the Company has in place a Board level CSR Committee. The Committee is responsible for formulating and monitoring the CSR policy of the Company. The CSR Policy is available on the Company’s website at www.ireda.in. IREDA also has a dedicated CSR unit in compliance with Shri Trivendra Singh Rawat, Hon’ble Chief Minister Uttarakhand Department of Public Enterprises (DPE) guidelines to facilitated IREDA for providing 75 KWP SPV Plant at War Memorial undertake the CSR activities of the Company. Boys, Girls Hostel (Garhwal Rifles) in Dehradun. During the year, your Company has strategically in India’s sustainable development by embedding wider chosen the company’s CSR initiatives with a focus on economic, social and environmental objectives. improving the quality of life, Rural Transformation, Health, Education and Urban Renewal. During 15. DIRECTORS FY 2017-18, IREDA has spent ₹3.61 Crore on CSR initiatives under these focus areas. The key philosophy 15.1 Board & Committees of the Board of all the social development initiatives of IREDA was The details of the composition, terms of reference and based on commitments of Impact and Environmental number of meetings of the Board and its committees Sustainability. The Company’s initiatives registered held during the financial year 2017-18 are provided an impressive reach across India. The Company has in the Corporate Governance Report annexed to this also undertaken CSR initiatives in the fields of rural Report. 15 (Fifteen) Meetings of the Board of Directors development including contribution to Swachh Bharat were held during the FY 2017-18. The recommendations Kosh, skill development, Electrification of Community made by the Audit Committee during the year were Areas. Annual Report on the activities of Corporate accepted by the Board. Social Responsibility (CSR) and expenditure incurred against each CSR activity is given at Annexure-V of 15.2 Directors and Key Managerial Personnel (KMP) this Report. During the year 2017-18, following changes took Your Company has created a provision of ₹10.33 Crore place in the composition of Board of Directors of your for the financial year 2017-18 towards CSR activities company; which is 2% of the average net profit for previous three financial years. During the FY 2017-18, projects worth S. Name of the Director Date of Appointment of ₹11.35 Crore were sanctioned. As against this, the No. Appointment/ / Cessation Company has spent ₹3.61 Crore during the FY 2017- Cessation 18 on CSR activities for the projects which were 1 Dr. A.K. Tripathi 23.05.2017 Cessation (DIN 07242743) completed/ongoing during the year (including ₹1.36 Crore paid for the projects which were sanctioned 2 Shri B. P. Yadav 29.05.2017 Appointment (DIN 07835275) during the year 2017-18). Projects aggregating to ₹11.35 Crore were sanctioned during the year and 3 Shri Abhishek Mahawar 14.09.2017 Appointment (DIN 02192597) in progress of completion at the end of the year. The unspent amount on CSR initiative shall be spent upon 4 Shri C. M. Bhatla 29.09.2017 Cessation (DIN 06966330) the completion of the project. 5 Ms. Indu Bala 04.10.2017* Appointment As a socially responsible corporate, your Company is (DIN 07956450) committed to increase its CSR impact and spend over 6 Shri J.B. Mohapatra 21.11.2017 Appointment the coming years, with its aim of playing a larger role (DIN 06659525) 30.11.2017 Cessation 26 7 Ms. Gargi Kaul 27.12.2017 Appointment by the Company. During the FY 2017-18, a total of ₹6 (DIN 07173427) Lakhs was paid by way of siting fees to the Independent 8 Shri Chintan N. Shah 05.03.2018 Appointment Director. Your Directors draw the attention of the (DIN 07795952) members to NOTE – 23 of other expenses of the 9 Ms. Madhusri M Swamy 19.03.2018 Appointment financial statement which sets out the amount paid (DIN 07539535) during the year to the Independent Director towards 10 Dr. Gangidi Manohar Reddy 19.03.2018 Appointment sitting fee. (DIN 07028036) 11 Shri Sanjay Jain 12.04.2018* Appointment As per Clause (e) of sub-section (3) of Section 134 of (DIN 08103209) the Companies Act, 2013, the requirement of disclosure *DIN Allotment date of policy on director’s appointment and remuneration criteria for determining qualifications, positive Dr. A.K. Tripathi, Director (Government Nominee) attributes, independence of a Director and other matters ceased to be a Director of the Company w.e.f. 23.05.2017 provided under sub-section (3) of Section 178 of the in pursuance of the letter received from MNRE. Shri Act has been exempted for government companies C.M. Bhatla, Director (Government Nominee) ceased vide Ministry of Corporate Affairs notification dated to be a Director of the Company w.e.f. 29.09.2017 due 5th June 2015. to attaining the age of his superannuation. Further, Shri J.B. Mohapatra, Director (Government Nominee) 17. HUMAN RESOURCE DEVELOPMENT ceased to be Director of the Company with effect from 17.1 Human Resources 30.11.2017 in pursuance to the Office Memorandum of Ministry of Finance. The Board places on record “Human Resource” is the most important asset of its deep appreciation of the valuable contributions the organization. Knowledge of employees and drive made by them in the growth of the Company during to change can transform the organization for future their tenure as a Member on the Board of Directors of growth. It is always a challenge that to remain updated IREDA. with latest technological advancement in the industry and equip the human capital for future. IREDA has As per the provisions of the Companies Act, 2013, achieved 929 training man-days for this financial the Chairman and Managing Director (CMD), year, which includes one-week training programme Director (Finance) and Company Secretary are the at Premier Institutes for more than 14% employees. Key Managerial Personnel (KMPs) of the Company. Your company is organizing “Monthly Lecture Series” The role of CFO is being performed by the Director for IREDA employees with eminent personalities of (Finance) of the Company. None of the Key Managerial different walks of life to harness the knowledge and Personnel (KMP) has resigned or appointed, during to create awareness on concepts for development. the year under review. “Succession Planning” an effective process for 16. POLICY ON DIRECTORS APPOINTMENT & recognizing, developing and retaining top leadership REMUNERATION & talent, has been introduced in your company with the approval of the Board. Your company conducted The process for selection, appointment and induction Departmental Promotion Committee in June, 2017 of Functional Directors vests with the President of and 27 personnel have been elevated to higher posts. India acting through the MNRE and the Department Your company is complying 100% online Appraisal of Public Enterprises (DPE). The Government Reports in respect of their employees. Nominee Directors are appointed by the MNRE (concerned administrative ministry). Independent Employees of IREDA celebrated the festival of Directors are appointed on the Board of the Company colours on the eve of Holi on 1st March, 2018 with a by the Government of India through its administrative commitment that this united colour will demonstrate ministry (MNRE) in consultation with the DPE. the same spirit in action and thoughts. As a part of women celebration, your company hosted Guest The Independent Director are entitled for sitting fees Lecture and Discussion on the topic “Women for attending the Board and Committee meetings Empowerment through Spirituality” emphasizing that as approved by Board within the limits prescribed women first believe in themselves and take decision in under the Companies Act. The Government Nominee life with calm and composed approach. Your company Directors are not paid any remuneration/sitting fee celebrated International Day of “Yoga” with “Yoga” and 27 “Lecture”. Yoga Classes are also being conducted for training programme at Premier Institutes for the employees on regular basis. Children of employees more than 14% employees. performed Music, Dance and other activities on the occasion of “Vigilance Awareness Week” and the event 17.2 Personnel and Industrial Relations created bondage among the employees. Total number Employee relations continued to be cordial and of employees at the end of the Financial Year was 147 harmonious during the financial year. An agreement excluding 3 Board Level Executives. was signed with the employees and the pay revision In addition to the above, 17 personnel were selected has been implemented for the employees effective from through Campus recruitment in the discipline of 01.01.2017 for a period of 10 years. There was no loss Technical, Finance & Law from Premier Institutes in of man-days on account of industrial unrest during the the month of March, 2018. Executive Trainees are financial year. likely to join in the month of June, 2018. 17.3 Particulars of Employees & related disclosure During the financial year under review following are The Ministry of Corporate Affairs (MCA) vide the achievements of HRM parameters in accordance Notification dated June 5, 2015 has exempted with MOU: Government companies from the disclosure 1. Your company is complying 100% online requirement of the provisions of Section-197 of the Appraisal Reports in respect of their employees. Companies Act hence, no disclosure is required to be Total number of employees at the end of the made. Financial Year was 147. 17.4 Reservations for SC/ST/OBCs/PWDs 2. Your company is complying 100% Online quarterly vigilance clearance updation for Your Company strictly observes the reservation senior Executives (AGM & Above). Total policy of the Government of India as applicable in the number of senior executives at the end of the categories belonging to Scheduled Castes/ Scheduled Financial Year was 21. Tribes/ Other Backward Communities/ Person with Disabilities. Your Company is following the reservation 3. “Succession Plan” has been approved by the rosters prescribed by the Government. Board of Directors on September 22, 2017. 17.5 Awards & Recognitions 4. Departmental Promotion Committee was conducted in June, 2017 and 27 personnel have During the financial year 2017-18, the efforts of your been elevated to higher posts. Company in financing and supporting Renewable 5. IREDA has achieved 929 training man-days Energy projects have been recognized by the sector. for this financial year, which includes one-week Your Company has received the following Awards in recognition of the same:  In the category of best financial performance (Mini Ratna Company) at Hindustan Ratna PSU award-2017.  Golden Peacock Award for Corporate Ethics for the year 2017.  CBIP Award for outstanding contribution for Development in Renewable Energy.  Best Overall Performance (Financial) Award by Governance Now.  India Pride Award 2017-18 under Mini Ratna Category by Dainik Bhaskar.  “Special Incentive Award and Shield” for the Shri Sanket Kumar Jain, AM (IT) won the Best Young Presenter (Male) year 2017 in the field of Official Language for in Power HR Forum Quest for Excellence on September 29th, 2017 excellent implementation of Hindi by Town 28 Official Language implementation committee critical to be left vacant and at the same time should (Undertaking), Delhi. have a strategic plan to fill them with the best qualified and capable person. Succession planning is critical to  MSME Banking Excellence Awards-2016. mission success and creates an effective process for recognizing, developing and retaining top leadership In addition to the above, efforts of Chairman & talent. Succession planning policy will facilitate the Managing Director of your Company has also been Company in identification of current and potential recognized and awarded by various Institutions/Bodies critical positions to reduce the business continuity during the FY 2017-18. Particulars of the awards are as risk and provide a transparent approach for selection under: of best suitable candidates for sanctioned positions.  Scope Award for excellence and outstanding The Succession Planning Policy is essential to ensure contribution to the Public Sector Management- IREDA’s productivity, growth and progress. The Individual Leadership Category III (Other effective succession planning process will enable Profit Making PSEs) 2014-15. IREDA to plan for successors to replace business critical and leadership roles within the organization. The  Conscious Capitalist for the year by First View company shall examine the necessary competencies Group. required for the position and also examine whether the competencies required are aligned with Company’s  “Mahatma Gandhi Samman” by the NRI vision, mission and objectives. The potential successors Welfare Society of India. shall be evaluated on Behavioral Competencies and 17.6 Succession Planning Functional Competencies parameters. During the year, Board of Directors of your Company 17.7 Disclosure under the Sexual Harassment of approved a succession plan for identification of jobs Women at Workplace (Prevention, Prohibition and considered to be at the core of the business and too Redressal) Act, 2013. IREDA has been conferred with CBIP award for ‘Outstanding Contribution for Development in Renewable Energy’. The award was presented by Dr. Satya Pal Singh, Hon’ble Union Minister of State for HRD, Water Resources, River Development and Ganga Rejuvenation to Mr. K.S. Popli, CMD, IREDA on 03.01.2018 at New Delhi. 29 IREDA has been conferred with ‘India Pride Award 2017‐18’ under the Mini Ratna category by Dainik Bhaskar Group. Shri K.S. Popli, CMD & Shri Chintan Shah, Director (Technical), IREDA from Shri Dharmendra Pradhan, (2nd from L) Hon’ble Minister of Petroleum & Natural Gas and Skill Development & Entrepreneurship and Shri Shivraj Singh Chouhan, (C) Hon’ble Chief Minister of Madhya Pradesh at an award ceremony in New Delhi on 28th March, 2018 To foster a positive workplace environment, free Company in the prescribed format is attached herewith from harassment of any nature, your Company in at Annexure-VI to the Directors’ Report. line with the provisions of Sexual Harassment of Women at Workplace (Prevention, Prohibition & 19. STATUTORY DISCLOSURES Redressal) Act, 2013, has constituted an ‘Complaints a) There was no major change in the nature of Committee’ for redressal of complaint(s) relating Business of the Company during the Financial to sexual harassment of women employees. The Year, 2017-18. However, 50 MW Solar Power committee is headed by a senior woman official of Project has been set up in Solar Park in Kerala the Company and includes a representative from an State has been fully synchronized with the grid NGO as one of its members. and generating power. During the financial year 2017-18, no complaint of b) The Company has not accepted any public sexual harassment was received in the Company. deposits during the financial year 2017-18. 18. EXTRACTS OF ANNUAL RETURN c) No significant and material orders were passed by the regulators or Courts or tribunals In accordance with Section 134 (3) (a) of the Companies impacting the going concern status and Act, 2013, an extract of the Annual Return of your Company’s operations in future. 30 IREDA has been awarded for ‘Best Overall Performance (Financial)’ by ‘Governance Now’ at 5th PSU Awards on 27th February, 2018 in Delhi. The award was presented by Shri Mansukh Lal Mandaviya, Hon’ble Minister of State for Road Transport & Highways, Shipping, Chemicals & Fertilizers and Smt. Krishna Raj, Hon’ble Minister of State for Agriculture & Farmers Welfare to Shri S. K. Bhargava, Director (Finance) and Dr. P. Sreenivasan, GM (HR) Brand Ambassador of Swachh Bharat Abhiyan Shri Raju Srivastava was also present. d) Section-186(11) of the Companies Act, 2013, Auditor General of India, as Statutory Auditors of pertaining to loans made, guarantees given or the Company for the FY 2017-18. The Statutory securities provided by the Company(s) engaged Auditors’ Report to the Members does not contain any in the business of financing of Companies or of qualification. providing infrastructure facilities in the ordinary course of its business, are not applicable to the 20.2 Audit Review Company. Hence, no disclosure is required to There are no comments on the Accounts from the be made. Comptroller and Auditor General (C&AG) of India. e) The Company has not issued any stock options 20.3 Internal Audit to the Directors or any employee of the Company. The Company’s internal control system is designed to ensure operational efficiency protection, accuracy 20. AUDITS & INSPECTION OF ACCOUNTS and promptness in financial reporting and compliance 20.1 Statutory Audit with laws and regulations. M/s. Ravi Rajan & Co., Chartered Accountants, New Delhi were appointed M/s. Jain Chopra & Company, Chartered Accountants, Company’s Internal Auditors for the financial year New Delhi, were appointed by the Comptroller and 2017-18 for reviewing the adequacy and efficacy of 31 the Company’s internal controls including its systems seeks to promote and follow highest level of Ethical and procedures and compliance with regulations and Standards in all their business transactions. The SEBI procedures. Internal Audit Reports were discussed (Listing Obligations and Disclosure Requirements) with the Management and were reviewed by the Audit Regulations, 2015 has mandated the formation of Committee of the Board. The Audit function also certain policies for all listed companies adhering proactively recommends improvement in operational to which the following new policies on Corporate process and service quality to mitigate various risks. Governance were formulated during the financial year. No personnel of the company have been denied access 20.4 Secretarial Audit to the audit committee. All the policies on Corporate Governance of the company are available on the M/s. S. C. Baluja & Associates, Practicing Company website at http://www.ireda.in/forms/contentpage. Secretaries (PCS), were appointed by the Board of aspx?lid=1868. Directors to conduct the Secretarial Audit of the Company for the financial year 2017-18, as required New compliance key policies that have been adopted under section 204 of the Companies Act, 2013 and are as follows; Rules thereunder. The Secretarial Audit Report for the FY ended 31st March, 2018 is attached herewith a. Familiarisation programme for Independent at Annexure-VII of this Report and the same is self- Directors explanatory. b. Policy on Vigil Mechanism/ Whistle Blower 20.5 Compliance Audit Policy Your Company engaged the services of M/s Nityanand c. Code of Conduct for Regulating and Reporting & Co. Practicing Company Secretaries to conduct Trading by Insiders and for Fair disclosure Compliance Audit for the third quarter of Financial d. Policy on Determination on Materiality of Year 2017-18 on the behest of Board as an additional Disclosures vigilant step towards the compliances done by the Company. e. Policy on Related Party Transactions The Compliance Audit was duly conducted and was 21.3 Particulars of Contracts or arrangements with completed in time and there has been no adverse related parties remark by the auditor. During the financial year 2017-18, the Company has 21. CORPORATE GOVERNANCE not entered into any material contracts/ arrangements/ transactions with related parties. Your Directors draw 21.1 IREDA is committed to taking ethical business decisions attention of the members to para 13 of Note 24 to and conducting business with a firm commitment to ‘Notes to Accounts’ of the Financial Statements which values, while meeting stakeholders’ expectations. This sets out Related Party disclosures. is vital to retain the trust of all stakeholders of the Company. 22. MATERIAL CHANGES & COMMITMENTS (IF ANY) AFFECTING THE FINANCIAL POSITION Your Company has undertaken the Corporate OF THE COMPANY WHICH HAVE OCCURRED Governance Audit by M/s. B. Mathur & Co., Practicing BETWEEN THE END OF THE FINANCIAL YEAR Company Secretaries. A detailed Report on Corporate AND THE DATE OF THE SIGNING OF ANNUAL Governance and certificate issued by the said firm REPORT regarding compliance of Corporate Governance guidelines forming part of Directors’ Report are attached There are no material changes and commitments, as Annexures-VIII & Annexure-IX respectively. affecting the financial position of the Company which has occurred between the end of the financial year i.e. 21.2 Board Policy March 31, 2018 and the date of this report. The Company constantly reviews its policies/ 23. VIGILANCE procedures from time to time, to suitably align with market requirements, with its corporate objectives Vigilance Department has been entrusted with the and applicable statutory requirements. Your Company role of ensuring that all the instructions/ guidelines 32 issued by the Central Vigilance Commission (CVC) are purpose to end the Vigilance Awareness Week with being complied within IREDA. Vigilance Department a memorable note that right and effective message of also conduct preventive checks to find out about the the corruption and its ill effect had been efficaciously wrong doings committed / likely to be committed; communicated to the employees of the IREDA and investigate complaints, process investigation report, their family members and also students of two schools for further necessary action, refer the matter to Central of NDMC. The “Employee Handbook on Vigilance” Vigilance Commission and suggest/ recommend for was also released by Chairman & Managing Director of system improvements to bring about greater equity and your Company in the presence of august gathering on fairness in IREDA’s procedure and systems. the concluding day of the Vigilance Awareness Week, 2017. Vigilance Department of IREDA has also been emphasizing on greater use of information technology During the year policy on “Vigil Mechanism/ Whistle to bring more fairness and transparency in the system Blower Policy’ has been implemented in IREDA to build and procedure of IREDA. The focus is more on and strengthen a culture of transparency. Further, the preventive vigilance and system improvement while at integrity pact has been implemented for all contracts the same time going for punitive vigilance, wherever having value exceeding ₹50.00 lakhs. IREDA is having required. In order to spread vigilance awareness, an “Independent External Monitor (IEM)’, approved promote culture of honesty & integrity, clean business by the Central Vigilance Commission, to oversee the environment, promptness and ethical practices, a implementation of the Integrity Pact. programme on “Preventive & Punitive Vigilance” was organized for the employees of IREDA on 16th August, As per the directions of the Central Vigilance 2017. Commission, Vigilance Department had studied the “Non-Performing Assets (NPA) and Written Off Bad IREDA had also taken an initiative to organize essay Loans” for the last 05 years and the reports have been and debate competitions in two schools run by the submitted to the Commission. New Delhi Municipal Council located at Moti Bagh and Lodhi Road, New Delhi on 11th and 12th October, 24. OFFICIAL LANGUAGE IMPLEMENTATION 2017 with a view for creation of awareness on the ill effects of corruption and to fight against it among the Your Company is committed to implement the students as a part of Vigilance Awareness Week, 2017. directives and guidelines issued by Government of India. Use of Hindi continued to be encouraged as In accordance with the guidelines of the Central the Official Language in your Company. During the Vigilance Commission, the Vigilance Awareness Week, 2017 was observed from 30th October to 4th November, 2017. The theme of the Vigilance Awareness Week was “My Vision – Corruption Free India”. In the inaugural function, integrity was taken by all the employees of IREDA. Seminars on various subject such as Preventive Vigilance/Punitive Vigilance, Purchase/ Tender for the officials of IREDA to sensitize them relating to corruption and its consequences in the country and the society were conducted during the period of Vigilance Awareness Week. Also organized debate competition for the employees of IREDA. Participation in Hindi language was promoted. As a part of Vigilance Awareness week, IREDA had observed “Customer Grievance Redressal Day” on 2nd November, 2017 at its offices located at New Delhi, Hyderabad, Chennai and Ahmedabad. In addition, an “OPEN FORUM” for As a part of “Vigilance Awareness Week, 2017”, IREDA had organized redressal of employee grievance was also organized. A Essay and Debate Competition at NP Co-Edu Sr. Secondary Schools, Moti Bagh and Lodhi Road, New Delhi, Shri K.S Popli, CMD, Shri small play for short period in Hindi – “Kuch Gahree Phillip Bara, CVO and Shri S.K. Bhargava, Director (Finance), IREDA Baatein” on the theme “Corruption” for the official distributing Awards in the valedictory function held on 4.11.2017 at of IREDA and its family was organized with a sole SCOPE Complex, New Delhi. 33 Shri K.S Popli, CMD, Shri Phillip Bara, CVO and Shri S.K. Bhargava, Director (Finance), IREDA distributing the awards to the winners of the competitions during the valedictory function of “Vigilance Awareness Week, 2017” held on 4.11.2017 at SCOPE Complex, New Delhi. year, Official Language Implementation Committee corporate as well as in registered office to promote use and Hindi Advisory Committee of MNRE Meetings of Hindi in day to day official work. were held to review the work done in Hindi in which In addition, during the month of September-2017, IREDA had also participated and the decision taken in the grand festival of Hindi Pakhwada and Hindi Day the meeting were implemented. was organized. On the closing ceremony of Hindi Employees were also provided training regarding Pakhwada, prize winners of Hindi competitions Hindi language/knowledge, Hindi Typing & Hindi were awarded. In order to increase the use of Hindi, Stenography. Further, in order to create a favorable E-Magazine in Hindi “Akshay Kranti” is published environment for the promotion of Hindi in the regularly and same is also available on IREDA’s website company, Hindi Books and Software were purchased www.ireda.in. In addition, Company`s internal monthly journal “Odyssey” is published in bilingual for the use of IREDA's employees. All computers are form, in which Hindi activities are also covered. enabled with Unicode Hindi. Hindi software, Unicode facility, Hindi glossary, SMS services in Hindi language On 13th July, 2017 IREDA successfully organized on IREDA’s Intranet Portal and IREDA`s website “NagarStariya Rajbhasha Sammelan” under the aegis of in bilingual language with constant update etc. are NARAKAS, Delhi, in which Shri Prabhas Kumar Jha, available as a tool to accelerate the use of Hindi on IAS, Secretary, Department of Official Language, Govt. computer. On daily basis, one word and one quote of India was invited as the chief guest. More than 90 both in Hindi and English are sent through SMS and officers from different government CPSEs were present through e-mail to all employees of the company. in this conference. During the FY 2017-18, various Hindi competitions, In the 46th meeting organized by the NARAKAS Hindi workshops were organized in Company’s Delhi on March 16, 2018, Shri Prabhas Kumar Jha 34 IREDA has been conferred with the "Special Incentive Award & Shield" for the year 2017 for excellent implementation of Official Language by Town implementation Committee of Official Language (Enterprises) in its 46th Meeting on 16th March, 2018 New Delhi. Shri Prakash Kumar Jha, IAS Secretary Department of Official Language, GOI and Mr. P.K. Singh, CMD, SAIL presented the Award to DR. P. Sreenivasan, GM (HR) and Mrs. Sangeeta Srivastava, Manager (OL), IREDA. (IAS), Secretary, Department of Official Language, and hosted on IREDA’s website. Your Company has Government of India and Chairman and Managing also designated a nodal officer/transparency officer Director of Steel Authority of India, Shri P.K. Singh for proper compliance of the proactive disclosure honored IREDA with the “Special Protsahan Puraskar guidelines. Besides, Company insures that information with Shield” for the year 2017 in the field of Official is widely disseminated in such form and manner which Language for excellent implementation of Hindi. is easily accessible to the public. 25. RIGHT TO INFORMATION (RTI) ACT 26. MOU WITH GOVERNMENT OF INDIA (GOI) Your Company has implemented the Right to Based on the achievements made by your Company Information (RTI) Act, 2005 to provide information against the agreed targets in the Memorandum of to the citizens of India and to maintain accountability Understanding (MoU) signed with the Ministry of and transparency in the working of the Company. New & Renewable Energy (MNRE), Government of The Company has designated a Public Information India for the financial year 2017-18, the performance Officer (PIO) and Appellate Authority for effective of your Company is expected to be rated as implementation of the RTI Act. “Excellent”. During the FY 2017-18, 103 applications were received 27. DIRECTORS’ RESPONSIBILITY STATEMENT under the RTI Act out of which 87 applications were disposed off by the end of March, 2018. However, Pursuant to the requirement under Section 134(3) (c) of remaining sixteen applications were disposed of the Companies Act, 2013 with respect to the Directors’ subsequently. In compliance with section 4 of the Responsibility Statement, the Board of Directors of the RTI Act, requisite disclosures have been updated Company hereby state that 35 a) in the preparation of the annual accounts for India, Reserve Bank of India, Department of Public the financial year ended on 31st March, 2018, Enterprises, Securities and Exchange Board of India, the applicable accounting standards have been National Stock Exchange of India & Bombay Stock followed and there are no material departures Exchange Ltd. and other regulators. Your Directors from the same; also place on record their appreciation for the support and co-operation of international financial institutions b) the Directors have selected such accounting namely Japan International Cooperation Agency policies and applied them consistently and made (JICA), Kreditanstalt fur Wiederaufbau (KfW), judgments and estimates that were reasonable Asian Development Bank (ADB), Agence Francaise and prudent, so as to give a true and fair view de Development (AFD), European Investment Bank of the state of affairs of the Company as at the (EIB), Nordic Investment Bank (NIB), International end of the financial year and of the Profit of the Finance Corporation (IFC), USAID and The World Company for the year ended 31st March, 2018; Bank. c) the Directors have taken proper and sufficient Your directors are thankful to the Comptroller and care for the maintenance of adequate accounting Auditor General (C&AG) of India, the Statutory records in accordance with the provisions of Auditors, Secretarial Auditors and the Internal the Companies Act, 2013 for safeguarding the Auditors for their valued support and guidance. assets of the Company and for preventing and detecting fraud and other irregularities; The Board also extends its special thanks to the bankers, financial institutions, all joint lead managers of the d) the Directors have prepared the annual accounts Masala Bond issue, investors and clients for reposing for the financial year ended on 31st March, 2018, their confidence and trust in your Company. on a going concern basis; Your Directors take this opportunity to express their e) the Directors have laid down internal financial appreciation for contribution of the employees to the controls to be followed by the Company and that growth of the Company and look forward to their such internal financial controls are adequate continued commitment and support towards the and were operating effectively; and progress of the Company. The Directors also place on record their gratitude to the Shareholders for reposing f) the Directors have devised proper systems their continued trust and confidence in the Company. to ensure compliance with the provisions of all applicable laws & that such systems were adequate and operating effectively. For and on behalf of the Board of Directors 28. ACKNOWLEDGEMENTS Sd/- Your Directors acknowledge and would like to place (KULJIT SINGH POPLI) on record their gratitude for the continued guidance, Chairman & Managing Director co-operation, support and encouragement extended (DIN: 01976135) to the Company by the Government of India, Ministry of New & Renewable Energy, Niti Aayog, Ministry Place : New Delhi of Finance, Ministry of Corporate Affairs and other Dated: July 20, 2018 Ministries / Departments of the Government of 36 Annexure-I STATE -WISE SANCTIONS DURING THE LAST FIVE YEARS (₹ in Crore) Sl. Name of State/ 2013-14 2014-15 2015-16 2016-17 2017-18 Cumulative since 1987 No. Union Territory No. of Loan No. of Loan No. of Loan No. of Loan No. of Loan No. of Loan Projects Amount Projects Amount Projects Amount Projects Amount Projects Amount Projects Amount A States 1 Andhra Pradesh 4 309.90 5 219.29 8 1090.44 11 2025 17 3231.81 301 8635.32 2 Arunachal Pradesh 0 0.00 2 178.50 0 0.00 0 0.00 2 98.92 7 1082.42 3 Assam 0 0.00 0 0.00 0 0.00 0 0.00 1 300.00 4 309.40 4 Bihar 1 25.00 0 0.00 0 0.00 0 0.00 0 0.00 10 36.67 5 Chhattisgarh 0 0.00 0 0.00 0 0.00 0 0.00 2 271.15 9 437.96 6 Gujarat 3 290.85 4 108.98 5 394.11 5 660 6 274.62 143 3501.01 7 Goa 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 8 0.62 8 Haryana 0 0.00 1 1.18 3 11.82 0 0.00 0 0.00 28 149.33 9 Himachal Pradesh 3 221.31 3 77.97 6 188.32 5 74.05 4 68.77 89 2691.44 10 Jammu & Kashmir 0 0.00 1 15.00 0 0.00 0 0.00 1 6.25 4 21.93 11 Jharkhand 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 7 139.89 12 Karnataka 4 248.51 3 293.00 7 1247.82 18 645.56 24 2602.28 347 8897.71 13 Kerala 1 95.00 0 0.00 1 36.00 0 0.00 0 0.00 33 256.11 14 Madhya Pradesh 1 60.00 3 327.76 5 654.35 1 328 4 441.62 90 2177.53 15 Maharashtra 9 930.68 7 428.66 6 902.06 5 1477.17 7 1705.00 383 8669.85 16 Manipur 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 3 0.46 17 Mizoram 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.16 18 Nagaland 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 1 0.82 19 NCT of Delhi 0 0.00 0 0.00 3 1125.00 2 422.50 2 900.00 68 2495.13 20 Orissa 0 0.00 2 182.00 3 147.00 2 80.60 3 208.10 24 964.87 21 Punjab 3 326.59 7 174.31 11 632.67 4 517.95 1 3.20 58 1748.91 22 Rajasthan 7 489.92 16 2324.21 1 25.66 9 1508 1 5.00 116 5584.31 23 Sikkim 2 297.05 1 25.00 0 0.00 1 43.59 0 0.00 4 365.64 24 Tamil Nadu 1 80.00 0 0.00 2 292.15 4 481.63 6 1428.19 453 4632.21 25 Telangana 0 0.00 1 9.00 10 629.10 8 898.79 2 94.21 21 1631.10 26 Uttar Pradesh 2 259.44 2 115.67 2 291.91 4 521.67 1 4.39 94 1764.28 27 Uttarakhand 1 84.15 2 15.00 0 0.00 6 365.50 2 153.75 30 1301.71 28 West Bengal 0 0.00 0 0.00 0 0.00 0 0.00 0 0.00 56 265.34 29 NCEF 2 100.00 0 0.00 3 16.91 8 38.36 1 1.29 14 156.56 30 Bridge Loan 0 0.00 0 48.23 27 61.48 15 35.22 5 26.06 47 170.99 31 Multistate Project 0 0.00 0 0.00 1 50.00 1 51.97 2 258.88 16 2777.94 32 Bill Discounting 0 0.00 0 0.00 4 9.66 3 23.45 4 46.52 11 79.63 Total ‘A’ 44 3818.40 60 4543.76 108 7806.46 112 10199.01 98 12130.01 2480 60947.25 B Union Territory 1 Andaman Nicobar 0 0.00 0 0.00 0 0.00 0 0 0 0 1 0.11 2 Daman 0 0.00 0 0.00 0 0.00 0 0 0 0 2 8.13 3 Pondicherry 0 0.00 1 5.03 0 0.00 0 0 0 0 3 6.41 Total ‘B’ 0 0.00 1 5.03 0 0.00 0 0 0 0 6 14.65 C Total ‘A’ + ‘B’ 44 3818.40 61 4548.79 108 7806.46 112 10199.01 98 12130.01 2486 60961.90 37 ANNEXURE-II SECTOR-WISE SANCTIONS DURING LAST FIVE YEARS (₹ in Crore) Sl. Sector 2013-14 2014-15 2015-16 2016-17 2017-18 Cumulative No. since 1987 1 Wind Power 1801.30 2556.76 2738.51 2460.50 3369.13 23001.73 2 Hydro Power 724.52 461.26 395.92 329.74 510.49 8015.84 3 Biomass Power & Cogeneration 402.17 189.91 310.63 146.38 164.00 5271.89 4 Energy Efficiency & Conservation 0 0 0 295.00 0.00 1271.10 5 Solar Energy 787.41 1291.45 2684.68 4778.39 4630.91 15702.89 6 Waste to Energy 3.00 1.18 13.67 0.00 317.60 422.76 7 Biomethanation from Industrial Effluents 0 0 0.00 0.00 0.00 19.47 8 Biomass Briquetting 0 0 0.00 0.00 0.00 12.43 9 Biomass Gasification 0 0 0.00 0.00 0.00 72.47 10 National Clean Energy Fund (NCEF) 100.00 0 16.92 38.36 1.29 156.57 11 Bill Discounting 0 0 9.65 23.45 46.52 79.62 12 Bridge Loan 0 0 61.48 35.22 26.06 122.76 13 Short Term Loan 0 48.23 1575.00 2040.00 2780.00 6476.39 14 Miscellaneous (Guarantee Scheme) 0 0 0.00 51.97 284.00 335.97 Total 3818.40 4548.79 7806.46 10199.01 12130.01 60961.90 IREDA funded 226.80 MW project in the state of Andhra Pradesh. 38 Annexure-III STATE-WISE DISBURSEMENT DURING LAST FIVE YEARS (₹ in Crore) Sl. Name of State/ Union 2013-14 2014-15 2015-16 2016-17 2017-18 Cumulative No. Territory since 1987 A States 1 Andhra Pradesh 291.03 228.44 272.61 1858.45 2560.75 6442.01 2 Arunachal Pradesh 0 0 18.76 50.89 49.08 118.73 3 Assam 0 0 0 0 0.00 0.21 4 Bihar 0 12.92 10.83 1.25 0.00 25.62 5 Chandigarh 0 0 0 0 1.19 1.19 6 Chhattisgarh 5.65 6.69 10.17 0 42.70 187.08 7 Dadar & Nagar Haveli 0 0 0 0 21.82 21.82 8 Gujarat 23.03 40.06 401.77 36.19 276.25 1940.00 9 Goa 0 0 0 0 0.00 0.22 10 Haryana 37.09 42.15 8.73 16.38 9.46 120.58 11 Himachal Pradesh 454.58 167.73 111.52 123.21 110.09 1851.87 12 Jammu & Kasmir 0 0 5.86 5.39 3.75 15.00 13 Jharkhand 0 0 0 0 0.00 68.25 14 Karnataka 229.9 254.29 471.08 462.39 1079.45 5345.86 15 Kerala 0 90.25 19.9 10.7 4.75 170.03 16 Madhya Pradesh 0 46.45 131.03 533.58 52.95 1018.45 17 Maharashtra 333.96 391.7 124.65 1601.76 1433.29 6028.70 18 NCT of Delhi 0 0 1125 400 921.38 2458.93 19 Nagaland 0 0 0 0 0.00 0.65 20 Orissa 0 0 148.02 63.69 40.12 483.06 21 Punjab 0 155.37 565.32 213.45 145.48 1170.97 22 Rajasthan 604.98 930.99 440.55 30.62 457.52 3197.87 23 Sikkim 178.87 112.33 5.84 13.79 6.86 317.69 24 Tamil Nadu 99.87 0 50.08 70.79 340.94 2126.52 25 Telangana 0 0 162.78 393.92 576.16 1132.86 26 Uttar Pradesh 31 140.09 167.87 382.54 161.61 1143.10 27 Uttarakhand 81.12 0 0 317.1 32.78 566.55 28 West Bengal 0 0 0 0 0.00 49.73 29 Additional Loan 100 0 0 7.4 0.00 107.40 Total ‘A’ 2471.08 2619.45 4252.37 6593.49 8328.38 36110.94 B Union Territory 1 Daman 0 0 0 0 0 1.49 2 Pondicherry 0 0 5.02 0 0 6.15 Total ‘B’ 0 0 5.02 0 0 7.64 C Total ‘A’ + ‘B’ 2471.08 2619.45 4257.39 6593.49 8328.38 36118.58 39 Annexure-IV SECTOR-WISE DISBURSEMENT DURING LAST FIVE YEARS (₹ in Crore) Sl. Sector 2013-14 2014-15 2015-16 2016-17 2017-18 Cumulative No. since 1987 1 Wind Power 1,173.55 1,354.93 873.50 2,535.59 2,823.49 14,843.75 2 Hydro Power 724.50 388.70 340.87 340.87 330.20 4,313.29 3 Biomass Power & Cogeneration 198.17 259.61 305.32 86.84 59.25 3,338.13 4 Energy Efficiency & Conservation 0.00 0.00 0.00 6.63 0.44 340.03 5 Solar Energy 274.86 576.10 1,519.18 1,524.03 2,746.31 7,354.20 6 Waste to Energy 0.00 2.19 0.85 2.59 0.00 64.29 7 Biomethanation from Industrial Effluents 0.00 0.00 0.00 0.00 0.00 57.60 8 Biomass Briquetting 0.00 0.00 0.00 0.00 0.00 9.99 9 Biomass Gasification 0.00 0.00 0.00 0.00 0.00 5.12 10 National Clean Energy Fund (NCEF) 100.00 0.00 0.00 15.11 12.03 127.14 11 Bill Discounting 0.00 0.00 9.66 23.45 26.52 59.63 12 Lines of Credit and short term loan 0.00 0.00 1,125.00 2,005.00 2,250.00 5,380.00 13 Bridge Loan 0.00 37.92 50.73 27.05 22.59 141.53 14 Miscellaneous (Manufacturing) 0.00 0.00 0.00 26.33 57.55 83.88 Total 2,471.08 2,619.45 4,257.39 6,593.49 8,328.38 36,118.58 IREDA funded 9.00 MW Balargha Small Hydro Project located at Village Balargha, Tehsil – Phati Manikaran, Dist-Kullu, Himachal Pradesh. 40 IREDA has been awarded ‘Golden Peacock Corporate Ethics Award’ for the year 2017. The award was presented by Justice (Dr.) Arijit Pasayat, former Judge, Supreme Court of India to Mr. K.S. Popli, CMD, IREDA on 14.12.2017. IREDA conferred with ‘Hindustan Ratna PSU Award‐2017’ under the category 'Best Financial Performance (Mini Ratna Company)'. The award was presented by Shri Nitin Gadkari, Hon’ble Union Minister for Road Transport & Highways, Shipping and Water Resources, Shri Piyush Goyal, then Hon'ble MoS (IC) for Power, Coal, New & Renewable Energy and Mines. Shri Manoj Sinha, Hon’ble Minister of Communication (IC) & Minister of State for Railways. Dr. P. Sreenivasan, General Manager (HR) and Shri Abhilakh Singh, General Manager (Technical) received the award on behalf of IREDA. 41 ANNEXURE-V ANNUAL REPORT ON CSR ACTIVITIES Sl. Particulars Remarks No. 1 A Brief outline of the Company’s CSR IREDA shall continue to enhance value creation in society through its primary business policy, including overview of projects of promoting self‐sustaining investment in projects related to renewable energy, energy or programs proposed to be undertaken efficiency and clean technologies for sustainable development. The aim of CSR activities and a reference to the web- link to the shall be to complement the primary business of the company with the overall social and CSR policy and project or programs environmental concerns related to its primary business. The CSR Policy may be accessed on the Company’s website at the link www.ireda.in Overview of the projects undertaken or proposed to be undertaken: IREDA has undertaken or proposed to be undertaken projects which will- ➢ Directly or indirectly benefit communities and results, over a period of time, in energy efficiency/ conservation and enhancing the quality of life & economic well‐ being of the local populace. ➢ Ensure an increased commitment at all levels in the organization to operate its business in an economically, socially & environmentally sustainable manner. ➢ Generate a community goodwill for IREDA and help reinforce a positive & socially responsible image of IREDA as a corporate entity. ➢ Encourage alignment with millennium development goals related to gender sensitivity, skill enhancement, entrepreneurship development etc. ➢ Encourage partnerships with National Disaster Management Authority (NDMAs) and other organizations at state and national levels to ensure preparedness of communities towards disaster resilience. The Projects undertaken during the year 2017-18 are provided in this report. 2 The Composition of the CSR As on March 31, 2018, the CSR Committee comprises of the following members: Committee. 1. Shri K. S Popli : Chairman 2. Shri S. K. Bhargava : Member 3. Shri Chintan N. Shah : Member 4. Shri B.P. Yadav : Member 5. Ms. Indu Bala : Member 3 Average net profit of the Company for ₹516.51 Crore last three financial years. 4 Prescribed CSR Expenditure (two per ₹10.33 Crore cent of the amount as in item 3 above). 5 Details of CSR spent during the financial year: a) Total amount to be spent for a) ₹10.33 Crore the financial year b) Amount unspent, if any; b) ₹6.72 Crore c) Manner in which the amount c) Manner in which the amount is spent during the financial year is detailed spent during the financial year below. 42 DETAILS OF EXPENDITURE ON CSR PROJECTS SANCTIONED DURING THE FY 2017-18 Sl. CSR Project or activity identified Sector in which the project is covered Projects or programmes Amount outlay Amount spent on the projects Cumulative Amount spent: Direct or No. (budget) project or programmes Sub-Head; expenditure through implementing agency. 1) Local area or other or programme- Direct expenditure on (A) up to the 2) other Specify the state wise (In ₹ Lakhs) projects or programmes (B) reporting and district where projects Overheads (In ₹ Lakhs) period. or programmes was undertaken. (A) (B) (In ₹ Lakhs) 1 Enviornmental Sustainability - Solar PV Environment Sustainability, Ecological Pali, Rajasthan 44.56 40.11 1.97 42.07 Implementing Agency Street Lighting Systems in Rural areas of Balance and Conservation of Natural (Rajasthan Electronics and Pali Constituency Resources Instruments Limited) 2 Enviornmental Sustainability - Solar PV Environment Sustainability, Ecological Chittorgarh, Rajasthan 10.02 9.02 1.28 10.31 Implementing Agency Street Lighting Systems in Sainik School Balance and Conservation of Natural (Rajasthan Electronics and Chittorgarh Resources Instruments Limited) 3 Enviornmental Sustainability - 3 X 25 kWp Environment Sustainability, Ecological Asansol, West Bengal 23.44 0 1.15 1.15 Implementing Agency Solar PV Systems at Ramakrishna Mission Balance and Conservation of Natural Bluearth Solar Pvt. Ltd. (SECI Ashram, Asansol, West Bengal Resources Empanelled Agency) 4 Enviornmental Sustainability - 3 X 25 kWp Environment Sustainability, Ecological Dehradun, Uttarakhand 13.50* 5.40 0.48 5.88 Directly By IREDA Solar PV Systems at War Memorial Boys Balance and Conservation of Natural (Installation Agency - Zivah and Girls Hostel, Dehradun, Uttarakhand Resources International Limited) 5 Enviornmental Sustainability - Solar PV Environment Sustainability, Ecological New Delhi, New Delhi 4.17 0 0 0 Directly By IREDA System at Saathi NGO Balance and Conservation of Natural (Installation Agency - Sunrator Resources Technologies LLP) 6 Enviornmental Sustainability - 100 Solar Environment Sustainability, Ecological Sitamarhi, Bihar 16.70 0 0.33 0.33 Implementing Agency (Uttar PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Pradesh Small Industries of Sitamarhi Parliamentary Constituency Resources Corporation) 7 Enviornmental Sustainability - 100 Solar Environment Sustainability, Ecological Koderma, Jharkhand 16.70 0 0.07 0.07 Implementing Agency (Uttar PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Pradesh Small Industries of Koderma Parliamentary Constituency Resources Corporation) 8 Enviornmental Sustainability - 200 Solar Environment Sustainability, Ecological Sirsa, Haryana 33.39 0 0.09 0.09 Implementing Agency (Uttar PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Pradesh Small Industries of Sirsa Parliamentary Constituency Resources Corporation) 9 Enviornmental Sustainability - 100 Solar Environment Sustainability, Ecological Bijnor, Uttar Pradesh 16.70 0 0.05 0.05 Implementing Agency (Uttar PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Pradesh Small Industries of Bijnor Parliamentary Constituency Resources Corporation) 10 Enviornmental Sustainability - 45 Solar Environment Sustainability, Ecological Almora, Uttarakhand 10.02 0 1.55 1.55 Implementing Agency (Central PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Electronics Limited) of Almora Resources 11 Enviornmental Sustainability - 150 Solar Environment Sustainability, Ecological Delhi, Bhopal, Delhi, MP 33.42 0 0 0 Implementing Agency Street Lights in 5 identified Villages of SoS Balance and Conservation of Natural (Rajasthan Electronics and Childrens Villages of India Resources Instruments Limited) 12 Enviornmental Sustainability - 10 kWp Environment Sustainability, Ecological Jhadol, Udaipur, Rajasthan 4.17 0 0 0 Directly By IREDA Solar PV System at Girls Sr. Sec. School, Balance and Conservation of Natural (Installation Agency - HIQ Jhadol Resources Power Associates Pvt. Ltd.) 13 Promoting Education & Yoga: Providing Promoting Education Giridih, Jharkhand 13.10 10.48 0 10.48 Implementing Agency 150 Desk Bench, Sports and Musical Items (Krishna Murari Foundation) at 5 Schools in Giridih Parliamentary Constituency 43 44 Sl. CSR Project or activity identified Sector in which the project is covered Projects or programmes Amount outlay Amount spent on the projects Cumulative Amount spent: Direct or No. (budget) project or programmes Sub-Head; expenditure through implementing agency. 1) Local area or other or programme- Direct expenditure on (A) up to the 2) other Specify the state wise (In ₹ Lakhs) projects or programmes (B) reporting and district where projects Overheads (In ₹ Lakhs) period. or programmes was undertaken. (A) (B) (In ₹ Lakhs) 14 Promoting Education -Providing Salary Promoting Education Delhi 10.20 7.65 0 7.65 Directly by IREDA support for Staff at Community Education Development Foundation 15 Promoting Health and Sanitation - Promoting Education Delhi 2.15 1.85 0 1.85 Directly by IREDA Providing 50 Yoga Mats, 1 LED TV and 1 Split AC at Indraprastha Girls Sr. Sec. School 16 Rural Development -Providing 2 High Rural Development Giridih, Jharkhand 7.85 3.14 0 3.14 Implementing Agency Mast Lights in Giridih Parliamentary (Krishna Murari Foundation) Constituency 17 Rural Development - Construction of Rural Development Kasargod, Kerala 20.20 0 0 0 Implementing Agency 2 football grounds in Madikkai Grama (Renewable Power Panchayath, Kasaragod, Kerala Corporation Kerala Ltd.) 18 Promoting Health and Sanitation - Health, Sanitation and Drinking Water Bhubaneswar, Odisha 23.27 23.27 1.54 24.81 Directly by IREDA Providing 2 Dialysis Units in Sai Saburi Hospital, Balakati, Bhubaneswar, Odisha 19 Promoting Health and Sanitation - Health, Sanitation and Drinking Water Baghmara, Jharkhand 7.90 7.88 0.18 8.06 Directly by IREDA Providing 250 LPH RO Based Water Vending Machine with Chiller at Baghmara 20 Donation: Donation to Health Minister Health, Sanitation and Drinking Water Pan India 10.00 10.00 0 10.00 Directly by IREDA Cancer Patient Fund 21 250 LPH Water Vending Machine and 400 Health, Sanitation and Drinking Water Gurugram, Haryana 10.11 0 0 0 Directly by IREDA Blankets at The Earth Saviours Foundation, NGO, Gurugram 22 Financial Support for knee surgery of 1 Health, Sanitation and Drinking Water Mumbai, Maharashtra 3.00 0 0 0 Directly by IREDA Child 23 Donation: Contribution to Swachh Bharat Health, Sanitation and Drinking Water Pan India 200.00 0 0 0 Directly by IREDA Kosh 24 IREDA CARES Model for providing Basic Health, Sanitation and Drinking In BRGF Districts across 600.00 0 0 0 Directly by IREDA Amenities in Rural Areas Water and Environment Sustainability, Various States Ecological Balance and Conservation of Natural Resources Other Overhead Costs for Carrying Out Health, Sanitation & Drinking Across Various States 0 0 9.27 9.27 By IREDA as well as Need Assessment of CSR Proposals Water, Education and Environment implementing agency Sustainability, Ecological Balance and Conservation of Natural Resources Total 1134.57 118.80 17.96 136.76 DETAILS OF EXPENDITURE ON CSR PROJECTS SANCTIONED IN EARLIER YEARS HOWEVER EXPENDITURE INCURRED IN FY 2017-18 Sl. CSR Project or activity identified Sector in which the project is covered Projects or programmes Amount outlay Amount spent on the Cumulative Amount spent: Direct or through No. (budget) project projects or programmes Sub- expenditure implementing agency. 1) Local area or other or programme- Head; Direct expenditure on up to the 2) other Specify the wise (In ₹ (A) projects or programmes reporting state and district where Lakhs) (B) Overheads period. projects or programmes was undertaken. (A) (B) 1 Promoting Education - Skill Development: Promoting Education Jaipur, Rajasthan 31.46 12.58 0.02 12.60 Implementing Agency Training and Skill Development of War (Command - CSR Cell - Indian Widows, their dependents and jawans Army) 2 Impact Assessment of 3 CSR projects in Environment Sustainability, Ecological Uttar Pradesh 2.79 0 0 0 Assessment Agency (Ircon Uttar Pradesh Balance and Conservation of Natural Infrastructure Services Limited) Resources -Monitoring & Evaluation 3 Promoting Education & Livelihood Promoting Education Sohna, Haryana 44.72 6.20 0.03 28.57 Implementing Agency (Skill Generation - Intervention of RE & Skilling Council for Green Jobs) for Smart Model Villages 4 Enviornmental Sustainability - 120 High Environment Sustainability, Ecological Varansi, Uttar Pradesh 210.24 65.47 0.31 65.78 Implementing Agency (Energy Mast and 300 Solar PV Street Lighting Balance and Conservation of Natural Efficiency Services Limited) Systems in Rural areas of Varanasi (North), Resources Varanasi (South) and Varanasi (Cantt.) Legislative Assembly Constituency 5 Enviornmental Sustainability - 200 Solar Environment Sustainability, Ecological Gautambudh Nagar, 43.00 0 0 38.90 Implementing Agency (Central PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Uttar Pradesh Electronics Limited) of Gautambudh Nagar Constituency. U.P. Resources 6 Enviornmental Sustainability - 200 Solar Environment Sustainability, Ecological Pilibhit, Uttar Pradesh 43.00 0 0.18 39.08 Implementing Agency (Central PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Electronics Limited) of Pilibhit Constituency. U.P. Resources 7 Enviornmental Sustainability - 150 Solar Environment Sustainability, Ecological Bhadohi, Uttar Pradesh 32.70 3.27 0 32.70 Implementing Agency (Rajasthan PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Electronics and Instruments of Bhadohi Constituency. U.P. Resources Limited) 8 Enviornmental Sustainability - 50 Solar PV Environment Sustainability, Ecological Shravasti, Uttar Pradesh 10.90 1.09 0.04 10.94 Implementing Agency (Rajasthan Street Lighting Systems in Rural areas of Balance and Conservation of Natural Electronics and Instruments Shravasti Constituency. U.P. Resources Limited) 9 Promoting Education & Yoga - Signing of Promoting Education Delhi / NCR 7.67 7.67 0 7.67 Implementing Agency (Delhi MoU with DPSRU and Collaboration for Pharmacutical Science and conducting Certificate Courses in Yoga Research University) Therapy 10 Promoting Education - Setting up 14 Promoting Education Kaushambi, Uttar 40.59 40.59 0.18 40.77 Implementing Agency Smart Classes in Kaushambi Public School, Pradesh (Kamdhenu Charitable Trust Kaushambi, U.P. - NGO) 11 Enviornmental Sustainability - 200 Solar Environment Sustainability, Ecological Barabanki, Uttar Pradesh 32.25 0 0 0 Implementing Agency (Central PV Street Lighting Systems in Rural areas Balance and Conservation of Natural Electronics Limited) of Barabanki Constituency. U.P. Resources 45 46 Sl. CSR Project or activity identified Sector in which the project is covered Projects or programmes Amount outlay Amount spent on the Cumulative Amount spent: Direct or through No. (budget) project projects or programmes Sub- expenditure implementing agency. 1) Local area or other or programme- Head; Direct expenditure on up to the 2) other Specify the wise (In ₹ (A) projects or programmes reporting state and district where Lakhs) (B) Overheads period. projects or programmes was undertaken. (A) (B) 12 Enviornmental Sustainability - 60 Solar Environment Sustainability, Ecological Akbarpur, Uttar Pradesh 36.59 32.93 0 32.93 Implementing Agency (Central PV Street Lighting Systems and 60 India Balance and Conservation of Natural Electronics Limited) Marka Hand Pumps in Rural areas of Resources Akbarpur Constituency. U.P. 13 10 KWp Solar PV power plant with batter Providing financial support Gurugram, Haryana 15.05 0 0 0 Implementing Agency (Central back up in the earth services foundation Electronics Limited) NGO, Gurugram (Haryana) 14 Electrification of Community Areas / Environment Sustainability, Ecological Giridih, Jharkhand 34.10 3.41 0.15 30.69 Implementing Agency (Deep Streets: Installation of 350 Nos. CFL Balance and Conservation of Natural Welfare NGO) streetlights in backward villages in 6 blocks Resources of Gireedh Parliamentary Constituency 15 **Electrification of Hospital & Environment Sustainability, Ecological Bardhman, West Bengal 20.71 3.91 0.05 20.00 Implementing Agency (Indian Skill Development: Installation of Solar Balance and Conservation of Natural Institute of Social Welfare and Power Plants of 5 kWp capacity on the Resources Business Management, Kolkata) rooftop of Sewagram hospital and creating a roadmap of solar electrification of Bhatar Block, Bardhaman, West Bengal 16 Swatch Bharath Abhiyan - Construction Swatch Bharath Abhiyan Haryana, Chhatisgarh 600.00 45.71 0.00 475.04 Implementing Agency (IRCON) of toilets and Rajasthan * An amount of ₹15.12 Lakh was sanctioned by the Board of Directors on the recommendation of CSR Commitee however the Least Bid amount was considered in Budget outlay. ** Financial Figure of last financial year has been regrouped. During the year, your Company has spent ₹3.61 Crore on CSR Activities (i..e around 0.69% of the average Net Profit of last three financial yeras). Few Projects undertaken by your company under CSR activities are in progress which shall be completed in the next financial year and payment shall be released as and when demanded by the Implementing Agencies based on the progress of the work / as per terms of agreement with these agencies. However, it may be mentioned that as per DPE guidelines, the CSR provision is non-lapsable and is carried over to the next year and hence the provisions made will be utilized in the subsequent years. The implementation and monitoring of CSR and sustainability Policy is in compliance with CSR objectives and Policy of the Company. Sd/- Sd/- K.S.Popli Indu Bala Chairman and Managing Director Member of the CSR Committee DIN: 01976135 DIN : 07956450 ANNEXURE-VI FORM NO. MGT- 9 EXTRACT OF ANNUAL RETURN as on the financial year ended on 31-Mar-18 [Pursuant to Section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management &Administration) Rules, 2014] I REGISTRATION & OTHER DETAILS: i CIN U65100DL1987GOI027265 ii Registration Date March 11, 1987 iii Name of the Company Indian Renewable Energy Development Agency Limited iv Category/Sub-category of the Company Company Limited by Shares-Union Govt. Company v Address of the Registered office & India Habitat Centre, 1st Floor, East, Court, Core 4A, contact details Lodhi Road, New Delhi-110003 Tel : 011-24682206-19, Fax: 011-24682202 Web-site: www.ireda.in vi Whether listed company Yes (Only Bonds of the Company are listed on BSE and NSE) vii Name, Address & contact details of the Link Intime India Pvt. Limited Registrar & Transfer Agent, if any. C-101, 247 Park, LBS Marg, Vikhroli (West),Mumbai- 400083 Tel : 022-49186270 Karvy Computershare Pvt. Limited Karvy Selenium Tower B, Plot No. 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad-500 032, India Tel : 040-67162222 II PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY All the business activities contributing 10% or more of the total turnover of the company shall be stated SL Name & Description of main products/ NIC Code of the Product /service % to total turnover of the No services company 1 Financial Intermediation, except insurance and 65923 100% pension funding Note: The Company is a Non-Banking Financial Company (NBFC) registered with the Reserve Bank of India (RBI) to commence/carry on the business of non- banking financial institution without accepting public deposits. The Company is engaged in the business of providing finance for Renewable Energy Sector. III PARTICULARS OF HOLDING , SUBSIDIARY & ASSOCIATE COMPANIES Sl Name & Address of the Company CIN/GLN HOLDING/ % OF APPLICABLE No SUBSIDIARY/ SHARES SECTION ASSOCIATE HELD 1 M/s M.P. Wind Farms Ltd. U40107MP1994PLC008737 Joint Venture 24% 2(6) Regd. Off: “Energy Tower”, 64, B-Sector Kasturba Nagar, Near Chetak Bridge, Bhopal, Madhya Pradesh-462023. 47 IV SHAREHOLDING PATTERN (Equity Share capital Break up as % of total Equity) (i) Category-wise Share Holdings Category of Shareholders No. of Shares held at the beginning of the year No. of Shares held at the end of the year* % change Demat Physical Total % of Total Demat Physical Total % of Total during the Shares Shares year A. Promoters (1) Indian a) Individual/HUF - - - b) Central Govt. - 7,846,000 7,846,000 100% - 784,600,000 784,600,000 100% No Change c) State Govt. - - - - - - - - - d) Bodies Corporates - - - - - - - - - e) Bank/FI - - - - - - - - - SUB TOTAL:(A) (1) - - - - - - - - - (2) Foreign - - - - - - - - a) NRI- Individuals - - - - - - - - - b) Other Individuals - - - - - - - - - c) Bodies Corp. - - - - - - - - - d) Banks/FI - - - - - - - - - e) Any other… - - - - - - - - - SUB TOTAL (A) (2) - - Total Shareholding of Promoter - 7,846,000 7,846,000 100% - 784,600,000 784,600,000 100% No Change (A)= (A)(1)+(A)(2) B. PUBLIC SHAREHOLDING - (1) Institutions - a) Mutual Funds - - - - - - - - - b) Banks/FI - - - - - - - - - C) Central govt - - - - - - - - - d) State Govt. - - - - - - - - - e) Venture Capital Fund - - - - - - - - - f) Insurance Companies - - - - - - - - - g) FIIs - - - - - - - - - h) Foreign Venture - - - - - - - - - Capital Funds i) Others (specify) - - - - - - - - - SUB TOTAL (B)(1): - - - - - - - - - (2) Non Institutions - a) Bodies corporates - - - - - - - - - i) Indian - - - - - - - - - ii) Overseas - - - - - - - - - b) Individuals - - - - - - - - - i) Individual shareholders - - - - - - - - - holding nominal share capital upto ₹ 1 lakhs ii) Individuals shareholders - - - - - - - - - holding nominal share capital in excess of ₹ 1 lakhs c) Others (specify) - - - - - - - - - SUB TOTAL (B)(2): - - - - - - - - - Total Public Shareholding - - - - - - - - - (B)= (B)(1)+(B)(2) C. Shares held by Custodian for - - - - - - - - - GDRs & ADRs Grand Total (A+B+C) - 7,846,000 7,846,000 100% - 784,600,000 784,600,000 100% No Change *Note: During the FY 2017-18, Share capital of the company has been sub-divided from 78,46,000 equity shares of ₹ 1000 each to 784,600,000 equity shares of ₹ 10 each in pursuance to the Shareholders meeting held on November 28, 2017. 48 (ii) SHARE HOLDING OF PROMOTERS Sl Shareholders Name Shareholding at the beginning of the year Shareholding at the end of the year % change in No. share holding No of shares % of total % of shares No of shares % of total % of shares during the year shares pledged shares pledged/ of the encumbered to of the encumbered to company total shares company total shares 1 President of India 7,846,000 100% 0 784,600,000 100% 0 No Change Total 7,846,000 100% 0 784,600,000 100% (iii) CHANGE IN PROMOTERS’ SHAREHOLDING ( SPECIFY IF THERE IS NO CHANGE) Sl. Share holding at the beginning of the Cumulative Share holding during the No. Year year No. of Shares % of total shares of No of shares % of total shares of the company the company 1 President of India At the beginning of the year 7,846,000 100% At the end of the Year 784,600,000 100% (iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters & Holders of GDRs & ADRs) NIL (v) Shareholding of Directors & key Managerial Personnel NIL V INDEBTEDNESS Indebtedness of the Company including interest outstanding/accrued but not due for payment Secured Loans Unsecured Deposits Total excluding deposits Loans Indebtedness Indebtness at the beginning of the financial year i) Principal Amount 52,592,733,856 77,895,596,169 - 130,488,330,025 ii) Interest due but not paid - iii) Interest accrued but not due 1,244,850,780 775,692,291 - 2,020,543,071 Total (i+ii+iii) 53,837,584,636 78,671,288,460 - 132,508,873,096 Change in Indebtedness during the financial year Additions 63,830,210 21,530,980,463 - 21,594,810,673 Reduction (870,411,675) (1,608,671,334) - (2,479,083,009) Net Change (806,581,465) 19,922,309,129 - 19,115,727,663 Indebtedness at the end of the financial year i) Principal Amount 51,786,152,391 97,817,905,298 - 149,604,057,688 ii) Interest due but not paid - - - - iii) Interest accrued but not due 1,900,157,980 858,223,850 - 2,758,381,830 Total (i+ii+iii) 53,686,310,371 98,676,129,147 - 152,362,439,518 49 VI REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL A. Remuneration to Managing Director, Whole time director and/or Manager: Sl. Particulars of Remuneration Name of the MD/WTD/Manager Total No Shri K S Shri S K Shri Chintan Amount Popli Bhargava Shah (CMD) D(F) D(T)* 1 Gross salary (a) Salary as per provisions contained in section 17(1) of the Income 4,673,259 4,779,062 198,442 9,650,763 Tax. 1961. (b) Value of perquisites u/s 17(2) of the Income tax Act, 1961 956,001 655,304 25,671 1,636,976 (c ) Profits in lieu of salary under section 17(3) of the Income Tax - - - - Act, 1961 2 Stock option - - - - 3 Sweat Equity - - - - 4 Commission - - - - as % of profit - - - - others (specify) - - - - 5 Others, please specify Employer PF Contribution 270,352 239,571 17,291 527,214 Employer Superannuation Contribution 202,764 179,679 12,968 395,411 Total (A) 6,102,376 5,853,616 254,372 12,210,364 Ceiling as per the Act Exempt for Government Companies as per MCA Notification dated June 5, 2015 * Appointed on the Board of IREDA w.e.f. March 5, 2018 B. Remuneration to other directors: Sl. Particulars of Remuneration Name of the Directors Total No Shri Ms. Indu Shri Smt. Shri Amount Abhishek Bala G.M. Madhusri M Sanjay Mahawar Reddy Swamy Jain 1 Independent Directors (a) Fee for attending Board/ committee meetings 380,000 220,000 - - - 600,000 (b) Commission - - - - - 0 (c ) Others, please specify - - - - - 0 Total (1) 380,000 220,000 - - - 600,000 Shri A.K. Shri Shri B.P. Shri J.B. Ms. Tripathi C.M. Yadav Mohapatra Gargi Bhatla Kaul 2 Other Non Executive Directors (a) Fee for attending board committees meetings - - - - - 0 (b) Commission - - - - - 0 (c ) Others, please specify. - - - - - 0 Total (2) - - - - - 0 Total (1+2) 380,000 220,000 - - - 600,000 Total Managerial Remuneration (Total A+B) 12,810,364 Overall Cieling as per the Act. Exempt for Government Companies as per MCA Notification dated June 5, 2015 50 C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD: Sl. Particulars of Remuneration Key Managerial Personnel No. 1 Gross Salary CEO Company CFO Total Secretary (a) Salary as per provisions contained in section 17(1) of the Income Tax 3,158,954 3,158,954 Act, 1961. (b) Value of perquisites u/s 17(2) of the Income Tax Act, 1961 232,936 232,936 (c ) Profits in lieu of salary under section 17(3) of the Income Tax Act, 1961 - - 2 Stock Option - - 3 Sweat Equity - - 4 Commission - - as % of profit - - others, specify - - 5 Others, please specify Employer PF Contribution 204,024 204,024 Employer Superannuation Contribution 153,016 153,016 Total 3,748,930 3,748,930 Note: Being a Government Company, the role of CEO is being performed by “CMD,” and the role of CFO is being performed by “Director (Finance)”. VII PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES Type Section of the Brief Details of Penalty/ Authority Appeal Companies Act Description Punishment/ (RD/NCLT/ made if Compounding fees Court) any (give imposed details) A. COMPANY Penalty None Punishment Compounding B. DIRECTORS Penalty None Punishment Compounding C. OTHER OFFICERS IN DEFAULT Penalty None Punishment Compounding 51 150 Solar PV Street Lights were provided to SOS Children Villages under CSR Fund of IREDA. International Yoga Day was celebrated by IREDA on 21st June, 2017 at India Habitat Centre. 52 ANNEXURE VII S. C. BALUJA & ASSOCIATES (Company Secretaries) A-105, Tarang Apartment, Plot 19, I.P. Extension S. C. Baluja F.C.S. Delhi-110092, Phone : 22725714, Mobile : 9811940854 Company Secretary E-mail : balujasc@rediffmail.com Form No. MR-3 SECRETARIAL AUDIT REPORT FOR THE FINANCIAL YEAR ENDED MARCH 31, 2018 [Pursuant to section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rule, 2014] To, The Members, M/s Indian Renewable Energy Development Agency Limited New Delhi We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate practices by M/s Indian Renewable Energy Development Agency 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 our opinion thereon. Based on our verification of the Company’s 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, we hereby report that in our opinion, the Company has, during the audit period covering the financial year ended on March 31, 2018 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: We have examined the books, papers, minute books, forms and returns filed and other records maintained by the Company for the financial year ended on March 31, 2018 according to the provisions of: (i) The Companies Act, 2013 (the Act) and the rules made thereunder; (ii) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder; Not Applicable (iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder; (iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings; Foreign Direct Investment and Overseas Direct Investment are not applicable on the Company (v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):- 53 a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; Not Applicable b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992; Not Applicable c. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009; d. The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999; Not Applicable e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the Companies Act and dealing with client; g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; and Not Applicable h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; Not Applicable (vi) Reserve Bank of India Act, 1934 to the extent applicable on non- deposit taking Non-Banking Financial Companies (NBFCs- ND-SI); (vii) Guidelines on Corporate Governance for Central Public Sector Enterprises; (viii) Employee Provident Fund Act, Employee State Insurance Act, Payment of Gratuity Act, Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Weekly Holiday Act, Industrial Dispute Act, Workmen Compensation Act, Contract Labour Regulation & Abolition Act and notification issued by Labour department from time to time under above acts. We have also examined compliance with the applicable clauses of the following: (i) Secretarial Standards issued by The Institute of Company Secretaries of India; (ii) The Listing Agreements entered into by the Company with Stock Exchange(s); During the period under review, the Company has duly complied with the various applicable provisions of the Acts, Rules, Regulations, Guidelines, Standards, etc. as mentioned above subject to the following observations: (i) The composition of the Board, Audit Committee, Corporate Social Responsibility Committee and Nomination and Remuneration Committee of the Company was not in accordance with the provisions of the Companies Act, 2013 till 01st November, 2017 and the Company does not have any Independent Director and Woman Director on its Board till 13th September, 2017 and 03rd October, 2017 respectively. We further report that; The Board of Directors of the Company is not duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent Directors as the Company does not have any Independent Director and Woman Director on its Board till 13th September, 2017 and 03rd October, 2017 respectively. 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 along with 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. The decisions in the meetings were passed unanimously hence, no dissenting members’ views have been recorded as part of the minutes. We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. 54 We further report that: (i) During the year, Mr. Arun Kumar Tripathi (DIN-07242743), Mr. Chander Mohan Bhatla (DIN-06966330) and Mr. Jagannath Bidyadhar Mohapatra (DIN- 06659525) Government Nominee Directors, ceased from the position of directorship. (ii) The Company has appointed Mr. Bhanu Pratap Yadav (DIN-07835275), Ms. Gargi Kaul (DIN-07173427) and Mr. Jagannath Bidyadhar Mohapatra (DIN- 06659525) as a Government Nominee Directors. The appointment of directors have been made on the basis of letter received from the Ministry of New and Renewable Energy (MNRE). (iii) The Company has appointed Mr. Abhishek Mahawar (DIN-02192597), Ms. Indu Bala (DIN-07956450), Ms. Madhushree M. Swamy (DIN-07539535), Mr. Manohar Reddy Gangidi (DIN-07028036) as Independent Directors. The appointment of directors have been made on the basis of letter received from the Ministry of New and Renewable Energy (MNRE). (iv) The Company has appointed Sh. Chintan Navinbhai Shah (DIN-07795952) as Director (Technical). The appointment of directors have been made on the basis of letter received from the Ministry of New and Renewable Energy (MNRE). (v) The Company has noted the circular resolutions in the subsequent board meetings and placed the same in the agenda papers as the part of the minutes. (vi) The Company has raised a sum of ₹1950 Crore (equivalent to USD 300 Million) by way of IREDA Green Masala Bonds from the International Debt Market. (vii) The Company has made Modification in existing borrowing limit approved under section 180(1) (c) of the Companies Act, 2013. (viii) The Company has restructured its capital by way of sub-division of nominal value of equity shares from Rs. 1,000/- (Rupees One Thousand only) to Rs. 10 (Rupees Ten only) per equity share. For S.C. Baluja & Associates Company Secretaries Date: 12-07-2018 FCS: 2721 Place: New Delhi CP-7475 55 ANNEXURE VIII REPORT ON CORPORATE GOVERNANCE The Company is committed to sound corporate practices 2.1 Composition of the Board of Directors based on conscience, openness, fairness, professionalism and accountability for achieving sustainable long term growth The Company is a Government Company within the and profitability. meaning of Section 2(45) of the Companies Act, 2013 as 100% of the paid up share capital is owned by the President As a Government Company- Guidelines on Corporate of India (Govt. of India). IREDA being a Government Company, the power to appoint Directors on the Board vests Governance for Central Public Sector Enterprises issued with the President of India acting through Administrative by Department of Public Enterprises (DPE), Ministry of Ministry viz. Ministry of New and Renewable Energy. Heavy Industries and Public Enterprises, Government of Further, as per the Articles of Association of the Company, India, are followed by the Company. A report in line with the the number of Directors of the Company shall not be less requirements of the DPE Guidelines is given below as a part of than 3 and not more than 15. the Director’s Report along with a Certificate (Annexure- IX) issued by a Practicing Company Secretaries M/s B. Mathur & During the year 2017-18, the following changes took Co. regarding compliance with the provisions of Corporate place in the Composition of the Board of Directors of Governance. the Company: 1. COMPANY’S PHILOSOPHY ON CODE OF Sl. Name of Director Date of Appointment/ CORPORATE GOVERNANCE No. Appointment/ Cessation Cessation The Company firmly believes and consistently practice 1. Dr. A.K. Tripathi 23.05.2017 Cessation good corporate governance. The Company’s policy is (DIN: 07242743) reflected by the values of transparency, professionalism 2. Shri B. P. Yadav 29.05.2017 Appointment and accountability. The Company constantly strives (DIN: 07835275) towards betterment of these aspects and thereby 3. Shri Abhishek Mahawar 14.09.2017 Appointment generating long term economic value for its customers, (DIN: 02192597) employees, stakeholders and the society as a whole. 4. Shri C. M. Bhatla 29.09.2017 Cessation (DIN: 06966330) IREDA is committed to be a competitive, client- 5. Ms. Indu Bala 04.10.2017 Appointment friendly and development-oriented organization, (DIN: 07956450) financing and promoting renewable energy and energy efficiency projects. The Company’s corporate structure, 6. Shri J.B. Mohapatra 21.11.2017 Appointment (DIN: 06659525) 30.11.2017 Cessation conduct of business and disclosure practices have been aligned to its Corporate Governance Philosophy. 7. Ms. Gargi Kaul 27.12.2017 Appointment (DIN: 07173427) 2. BOARD OF DIRECTORS 8. Shri Chintan N. Shah 05.03.2018 Appointment (DIN: 07795952) The Board of Directors of IREDA provides leadership, 9. Smt. Madhusri M Swamy 19.03.2018 Appointment objective judgment, strategic guidance and exercises (DIN: 07539535) control over the Company while remaining at all times 10. Dr. Gangidi Manohar Reddy 19.03.2018 Appointment accountable to all stakeholders. The Board draws upon (DIN: 07028036) its powers and manages the affairs of the Company 11. Shri Sanjay Jain 12.04.2018* Appointment within the framework set out in the Companies Act, (DIN: 08103209) Memorandum of Association, Articles of Association * Appointed as Part Time Non-Official Director (Independent Director) of the Company, listing agreement with the Stock on the Board of IREDA by MNRE in pursuance to MNRE letter no Exchanges and internal codes / procedures of the 1/19/1995-IREDA dated 19.03.2018 however DIN was allotted to him Company etc. on 12.04.2018. 56 As on March 31, 2018 the Company’s Board Directors well in advance for the Meeting of the Board comprised of 10 Directors which includes 3 Whole in compliance of the statutory provisions. To address Time Functional Directors, 2 Part-Time Government specific urgent needs, Meetings are called at shorter Nominee Directors and 5 Part-Time Non-Official notice with the consent of all the Directors. In some Director (Independent Directors). A brief profile of all instances, resolutions are passed by circulation which the Directors are provided in this report. is confirmed in the next Board Meeting. The Chairman & Managing Director with the consent of other Board The composition of the Board as on March 31, 2018 members decides inclusion of any matter in the agenda is as follows: for discussion in the Meeting of the Board. Head of Department (HoDs)/Senior Management Officials Functional Directors (Whole-time Director) are also called to provide additional inputs on the 1. Shri K. S. Popli Chairman & Managing matters being discussed in the meetings of the Board, if DIN: 01976135 Director and KMP required. The Board is also given detailed presentation 2. Shri S. K. Bhargava Director (Finance), Chief on certain agenda items, if required. The Company is DIN: 01430006 Financial Officer and KMP also complying with the Secretarial Standards issued by the Institute of Company Secretaries of India, effective 3. Shri Chintan N. Shah Director (Technical) from July 1, 2015, in respect of Board Meetings and DIN: 07795952 General Meetings. Post meeting, a copy of the signed Ex-officio Part-Time Directors (Government Nominee minutes is circulated to the Directors within the Directors) prescribed time. 4. Ms. Gargi Kaul Director (Government DIN: 07173427 Nominee) To keep pace with the changing environment IREDA has taken an initiative towards the paperless meetings 5. Shri B.P. Yadav Director (Government DIN: 07835275 Nominee) by refraining to circulate Meeting Agenda in hard. IREDA has Digitalized the Agenda for the Meeting of Part-Time Non-Official Directors (Independent Directors) the Board and Committee Meetings so as to avoid the 6. Shri Abhishek Mahawar Independent Director use of paper. DIN: 02192597 During the Financial Year 2017-18, 15 (Fifteen) Board 7. Ms. Indu Bala Independent Director DIN: 07956450 Meetings were held viz. on 10/04/2017, 14/05/2017, 26/05/2017, 22/06/2017, 27/07/2017, 06/09/2017, 8. Ms. Madhusri M. Swamy Independent Director 22/09/2017, 11/11/2017, 29/11/2017, 06/12/2017, DIN: 07539535 21/12/2017, 29/01/2018, 07/02/2018, 07/03/2018 and 9. Dr. Gangidi Manohar Reddy Independent Director 26/03/2018. The minimum and maximum interval DIN: 07028036 between any two Board Meetings was 7 days and 50 10. Shri Sanjay Jain* Independent Director days respectively. DIN: 08103209 The Board has complete access to all the relevant * Appointed as Part-Time Non-Official Director (Independent Director) information within the Company including those on the Board of IREDA by MNRE in pursuance to MNRE letter no 1/19/1995-IREDA dated 19.03.2018 however DIN was allotted to him prescribed in the DPE Guidelines on Corporate on 12.04.2018. Governance. 2.2 Number of Board Meetings held during the Financial 2.3 Attendance record of Directors at Board Meetings Year 2017-18 and last Annual General Meeting and number of other Directorships/Committee Memberships/ The Company follows a methodized process of decision Chairmanships. making by the Board. The meetings of the Board are generally held at the registered office of the Company Attendance of each Director at the Board Meetings during office hours and are scheduled well in advance. held during the Financial Year 2017-18 and at the The meeting dates are usually finalized in consultation last Annual General Meeting held on 22.09.2017 with all Directors in order to ensure presence of all and number of other Directorships / Committee Board Members in its Meeting. Detailed agenda papers Memberships/ Chairmanships of each Director is including explanatory notes are circulated to all the given below: 57 Name and Designation of the Director Board Meetings No. of Membership in the Attendance other Committees of other at the Director- Companies as on last AGM ship as on 31.03.2018** (22.09.2017) 31.03.2018 Held Attended As As during (as per Member Chairman the year tenure) (as per tenure) Shri K. S. Popli 15 15 Nil Nil Nil Attended (Chairman & Managing Director) Shri S. K. Bhargava 15 15 Nil Nil Nil Attended Director (Finance) Shri Chintan N. Shah 2 2 Nil Nil Nil NA Director(Technical) Dr. A. K. Tripathi 2 2 Nil Nil Nil NA Director (Government Nominee) Shri C. M. Bhatla 7 7 Nil Nil Nil Attended Director (Government Nominee) Shri J. B. Mohapatra 1 1 Nil Nil Nil N.A Director (Government Nominee) Shri B. P. Yadav 12 10 Nil Nil Nil Attended Director (Government Nominee) Ms. Gargi Kaul 4 3 8 2 3 N.A Director(Government Nominee) *Ms. Indu Bala 8 4 Nil Nil Nil N.A Independent Director *Shri Abhishek Mahawar 8 8 Nil Nil Nil N.A Independent Director *Dr. Gangidi Manohar Reddy 1 - 1 1 Nil N.A Independent Director *Smt. Madhusri M Swamy 1 - 1 Nil Nil N.A. Independent Director Shri Sanjay Jain Nil Nil Nil Nil Nil N.A. Independent Director Notes: 1. *Appointed as part time non-official directors (Independent Director) on the Board of IREDA w.e.f. MNRE letter of even dated however the meeting held during their tenure was counted from the date of their joining on the Board of IREDA. 2. **Does not include Chairmanship/Membership in Board Committees other than Audit Committee and Shareholders’/Investors’ Grievance Committee. 3. N.A indicates that concerned person was not a member on IREDA’s Board on the relevant date. 4. None of the Directors of the Company is in any way related to each other. 58 2.4 Information available to the Board appraisal and financing of power projects in generation, transmission, distribution and renewable energy and The Board has complete access to all relevant energy efficiency projects. He has been associated with information within the Company. The information the Company for more than ten years. Prior to joining regularly supplied to the Board specifically includes: the Company, he has been associated with Power Finance Corporation Limited, National Hydroelectric • Annual operating plans, budgets and any Power Corporation Limited and Mather and Platt updates therein. (India) Limited. • Capital budgets and any updates therein. Shri Satish Kumar Bhargava, is the Director (Finance) • Quarterly MoU achievements/ results for the and CFO of the Company. He holds a Bachelor’s Company. Degree in Commerce from University of Delhi. He is a fellow member of the Institute of Cost Accountants • Minutes of meetings of Audit Committee and of India and the Institute of Company Secretaries of other Committees of the Board. India. He has been associated with the Company since 2000 and have over 33 years of experience. In the past, • Information on recruitment/remuneration of he has been associated with National Thermal Power senior officers just below the Board level. Corporation Limited, HMT Limited and Central • Material show cause, demand, prosecution Electronics Limited. notices and penalty notices, if any. Shri Chintan N. Shah, is the Director (Technical) of • Any material default in financial obligations the Company. Prior to joining IREDA, he was serving to and by the Company or substantial non- as President with SUZLON Group of Companies. In payment for services provided by the Company. the past he has worked with The Energy and Resource Institute (TERI). He is working in the renewable • Details of any joint venture or collaboration energy field for the last 22 years covering various agreement. activities including manufacturing of RE Systems/ Products, project execution, project consultancy, • Investments. project financing, policy planning etc. • Quarterly foreign exchange exposures and the Ms. Gargi Kaul, is the Director (Government steps taken by management to limit the risks of Nominee) of the Company. She is a civil servant with adverse exchange rate movement, if material. the Government of India, working at present as the • Report on compliance/non-compliance of Financial adviser to the Ministries of Civil Aviation, regulatory or statutory provisions applicable on Food Processing Industries and New and Renewable the Company. Energy. She holds a Ph.D. in Political Science having specialised in the field of Governance. She joined the • Action Taken Report on decision taken by the Indian Audit and Accounts Service in 1984 and in a Board which provides an updated status on all career spanning over 30 years she has worked in various such pending matters. capacities nationally and internationally, including assignments with the United Nations. She was very • Any other information required to be presented closely associated with the preparation of the National to the Board for information and/or approval. Civil Aviation Policy of the Government of India Brief Profile of Directors released in 2016. In the past, she was the Principal Accountant General of Odisha, where she was actively Shri Kuljit Singh Popli, is the Chairman & Managing involved and implemented several IT related Initiatives Director of the Company. He holds a Bachelor’s Degree in the field of Government Accounts. Her field of in science (electrical engineering) from Birla Institute experience is financial management and auditing and of Technology, Mesra, Ranchi and Bachelor’s Degree has written several articles and reports related to her in Law from University of Delhi. He has completed a sphere of work. diploma course in Project Management from Punjabi University. He has more than 35 years of diversified Shri Bhanu Pratap Yadav, is the Director (Government experience in the field of design, engineering, erection, Nominee) of the Company. He holds a Bachelor’s 59 Degree in civil engineering and a master’s Degree 2.5 Code of Conduct in behavioural and social sciences from the Indian Institute of Technology, Delhi. He has completed The Board of Directors has laid down a code of conduct the post graduate programme in management for for the Board members and Senior Management senior executives from the Indian School of Business, Personnel in alignment with Company’s mission Hyderabad and a certified internal auditor from the and objectives and aims at enhancing ethical and Institute of Internal Auditors. He has been associated transparent process in managing the affairs of the with the Company since May, 2017. He has over 20 years Company. A copy of the Code of Conduct is available of experience in the field of Internal as well as External on the website of the Company i.e. www.ireda.in audit. He is presently working as Joint Secretary in the Ministry of New and Renewable Energy, Government Declaration as required under DPE Guidelines on of India. Corporate Governance Ms. Indu Bala, is an Independent Director of the Company. She holds Bachelor’s Degree in Arts from All the Members of the Board and Senior Himachal Pradesh University, Shimla. She has been Management Personnel have affirmed compliance of associated with the Company since October, 2017. the Code of Conduct for the Financial year ended on She is also associated as Director with Parmarth March 31, 2018. International School, Kangra. (K. S. Popli) Shri Abhishek Mahawar, is an Independent Director Chairman & Managing Director of the Company. He holds Bachelor’s Degree in Electronics Engineering from Pandit Ravishankar COMMITTEES OF THE BOARD OF DIRECTORS Shukla University, Raipur. He has been associated with the Company since September, 2017. He is a member The Board functions either as full Board or through of the Institute of Chartered Accountants of India and various committees constituted to oversee specific has over 18 years of experience in the fields of auditing, operational areas. Each Committee of the Board is taxation and ERP consulting. He is partner in APAS & guided by its terms of reference, which defines the Co. Chartered Accountants since 2005. Prior to joining composition, scope and powers of the Committee. The APAS & Co., he was associated for approximately six Committees meet at regular intervals and focus on years with Infosys Limited as senior consultant. specific areas and make decisions within the authority delegated to them. Dr. Gangidi Manohar Reddy, is an Independent Director of the Company. He holds a Master’s Degree As on March 31, 2018, Committees of the Board are as in Chemistry and Doctorate in Physical Chemistry follows: from Osmania University, Hyderabad. He has been associated with the Company since March, 2018. He 1. Audit Committee; is a visionary educationalist and is a life member of 2. Loan Committee of Directors; many educational institutions. He was a Lecturer in Hyderabad. He is a Social Activist and is associated 3. Nomination & Remuneration Committee with many service organizations. He is having rich experience in Educational and Management fields. 4. Corporate Social Responsibility Committee of Directors Ms. Madhusri M Swamy, is an Independent Director of the Company. She holds a Bachelor’s Degree in Law and 5. Investment Committee of Directors the Master’s Degree in Political Science. She has been 6. Stakeholders Relationship Committee associated with the Company since March, 2018. She is a Advocate by Profession and is also a Social Activist. The Minutes of the Meetings of the Committees are placed before the Board for information. Shri Sanjay Jain, is an Independent Director of the Company. He is a member of the Institute of Chartered 3. AUDIT COMMITTEE Accountants of India and has over 25 years of experience in the field of taxation, auditing, corporate IREDA had constituted a Committee of the Board affairs, insurance and management consultancy. known as “Audit Committee”. During the Financial Year 60 2017-18, the Audit committee was last reconstituted (e) Compliance with listing and other by the Board of Directors in its 297th meeting held on legal requirements relating Financial November 11, 2017. Statements; As on March 31, 2018, the Audit Committee comprises (f) Disclosure of any Related Party of the following members: Transactions; and 1. Shri Abhishek Mahawar : Chairman of the (g) Modified opinion(s) in the draft Audit Independent Director Committee Report. 2. Ms. Indu Bala : Member 6. Reviewing with the management, the quarterly/ Independent Director half-yearly Financial Statements before submission to the Board for approval. 3. Shri B.P. Yadav : Member Director (Government 7. Reviewing with the management, performance Nominee) of Statutory and Internal Auditors and adequacy of the internal control systems. 3.1 Terms of Reference of the Audit Committee 8. Reviewing the adequacy of internal audit 1. Oversight of the Company’s financial reporting function, if any including the structure of the process and the disclosure of its financial internal audit department, staffing and seniority information to ensure that the financial of the official heading the department, reporting statement is correct, sufficient and credible. structure coverage and frequency of internal audit. 2. To take note for the appointment, and terms of appointment of the auditors of the Company. 9. Discussion with Internal Auditors and / or Auditors of any significant findings and follow 3. To recommend to the Board on the fixation of up there on. audit fees. 10. Reviewing the findings of any internal 4. Approval of payment to the Statutory Auditors investigations by the Internal Auditors / for any other services rendered by the Statutory Auditors / agencies into matters where there Auditors. is suspected fraud or irregularity or a failure 5. Reviewing and examining with the management, of internal control systems of a material nature the annual financial statements and the and reporting the matter to the Board. Auditors’ Report thereon before submission to 11. Discussion with Statutory Auditors before the the Board for approval with particular reference audit commences, about the nature and scope to: of audit as well as post-audit discussion to (a) Matters required to be included in the ascertain any area of concern. Directors’ Responsibility Statement to be 12. To look into the reasons for substantial defaults included in the Board’s Report in terms in the payment to the depositors, debenture of clause (c) of sub-section 3 of Section holders, shareholders (in case of non-payment 134 of the Companies Act, 2013; of declared dividends) and creditors. (b) Changes, if any, in accounting policies 13. To review and monitor the function of the and practices and reasons for the same; whistle blower mechanism. (c) Major accounting entries involving 14. Approving appointment of chief financial officer estimates based on the exercise of after assessing the qualifications, experience judgment by management; and background, etc. of the candidate; provided (d) Significant adjustments made in the where Director (Finance) is appointed by the financial statements arising out of audit administrative ministry he will act as the Chief findings; Financial Officer; 61 15. To review the follow up action on the audit I. Management discussion and analysis observations of CAG Audit. of financial condition and results of operations. 16. To review the follow up action taken on the recommendations of Committee on Public II. Statement of significant Related Undertakings (COPU) of the Parliament. Party Transactions (as defined by the Audit Committee), submitted by 17. Provide an open avenue of communication management. between the independent auditor, internal auditor and the Board of Directors. III. Management letters / letter of internal control weaknesses issued by the 18. Approval or any subsequent modification Statutory Auditors. of transactions of the Company with related parties. IV. Internal audit reports relating to internal control weaknesses. 19. To make omnibus approval for related party transactions proposed to be entered into by V. The appointment, removal and transfer the Company subject to such conditions as of the Chief of the internal / systems may be prescribed. audit shall be placed before the Audit Committee. 20. Review with the independent auditor the co-ordination of audit efforts to assure VI. Certification / declaration of financial completeness of coverage reduction of statements by the Chief Executive / redundant efforts, and the effective use of all Chief Finance Officer to be designated audit resources. by the Board. 21. Consider and review the following with the VII. Statement of deviations: Independent Auditor and the management: (i) Quarterly statement of deviation(s) • The adequacy of internal controls including report of monitoring agency, including computerized information if applicable, submitted to stock system controls and security, and exchange(s) in terms of Regulation • Related findings and recommendations 32(1) of Securities and Exchange & the independent auditor and internal Board of India (Listing Obligations and auditor, together with the management Disclosure Requirements) Regulations, responses. 2015 (“Listing Regulations”); and 22. Consider and review the following with (ii) Annual statement of funds utilized for the management, internal auditor and the purposes other than those stated in the Independent Auditor: offer document/ prospectus/ notice in terms of Regulation 32(7) of Listing • Significant findings during the year, Regulations. including the status of previous audit recommendations; and 24. Review and monitor the Statutory Auditor’s Independence and performance, and • Any difficulties encountered during effectiveness of audit process. audit work including any restrictions on the scope of activities or access to 25. Scrutiny of inter-corporate loans and required information. investments. 23. The Audit Committee shall mandatorily 26. Valuation of undertakings or assets of the review the following information: Company, wherever it is necessary. 62 27. Evaluation of internal financial controls and any other such executives of the Company to risk management systems. be present at the meetings of the committee. Provided that occasionally the audit 28. Reviewing, with the management, the committee may meet without the presence of statement of uses / application of funds raised any executives of the Company. through an issue (public issue, rights issue, preferential issue, etc.), the statement of funds (b) The Committee may call for the comments utilized for purposes other than those stated of the auditors about the internal control in the offer document / prospectus / notice systems, the scope of audit, including the and the report submitted by the monitoring observations of auditors and review of agency monitoring the utilisation of proceeds financial statement before their submission of a public or rights issue, and making to the Board and may also discuss any related appropriate recommendations to the board to issues with the internal and statutory auditors take up steps in this matter. and management of the Company. 29. Carrying out any other function as prescribed (c) The auditors of the Company and the key under the DPE Guidelines, Companies Act management personnel shall have a right and Listing Regulations, as applicable to to be heard in the meetings of the Audit the Company from time to time and any Committee when it considers the Auditor’s other function as deemed appropriate or Report but shall not have the right to vote. determined by the Board from time to time in the best interest of the Company and other (d) The Board’s report under section 134(3) stakeholders of the Company. of the Companies Act, 2013, shall disclose the composition of an Audit Committee 30. The powers of the Audit Committee include and where the Board had not accepted any the following: recommendation of the Audit Committee, the same shall be disclosed in such report (a) To investigate into the matters of any along with the reasons therefor. activity specified within its terms of reference; Unless otherwise defined, for the purposes of the definition of auditor above, shall include (b) To seek information from any Statutory Auditors, Secretarial Auditors, Cost employee of the Company; Auditors and Internal Auditors. (c) To obtain legal or other professional 3.2 Number of Meetings of Audit Committee advice from external sources, if necessary; As per the statutory requirement, the Audit Committee is required to meet at least four times (d) To secure attendance of outsiders with in a year and not more than four months should relevant expertise, if necessary; and elapse between two meetings in that year. During the Financial Year 2017-18, 7 (Seven) Audit Committee (e) To have full access to the information Meetings were held on viz. 14/05/2017, 22/06/2017, contained in the records of the 06/09/2017, 11/11/2017, 29/11/2017, 06/12/2017 Company. and 26/03/2018. Detailed agendas along with explanatory statement were circulated in advance to For the purpose of above Terms of Reference: the Committee members. (a) The Committee may invite the Director The members’ attendance at the Audit Committee (Finance) or head of the finance function and meetings held during the Financial Year 2017-18 are a representative of the Statutory Auditor and as under: 63 SL. Name of the Member and Designation Designation/ No. of Meetings No. of Meetings Attendance No. Position in the held during the Attended at last AGM Committee tenure 1. *Shri C. M. Bhatla Chairman 3 3 Attended Director (Government Nominee) 2. *Dr. A.K. Tripathi Member 1 1 ------ Director (Government Nominee) 3. Shri. S. K. Bhargava Member 3 3 Attended Director (Finance) 4. Shri B. P. Yadav Chairman/ 6 5 Attended Director (Government Nominee) Member 5. Ms. Indu Bala Member 4 1 N.A Independent Director 6. Shri Abhishek Mahawar Chairman 4 4 N.A Independent Director The Company Secretary is the Secretary of the 4. Shri B.P. Yadav : Member Committee. Director (Government Notes: Nominee) 1. N.A indicates that concerned person was not a member on IREDA’s Board on the relevant date. 5. Shri Abhishek Mahawar : Member Independent Director 2. *Dr. A.K. Tripathi & Shri C.M. Bhatla, Directors (Government Nominee) ceased to be Director on the 4.1 Terms of Reference of Loan Committee of Directors Board of IREDA w.e.f. May 23, 2017 & September 29, 2017 (LCOD) respectively. (a) To consider sanction of loans for projects as per The Chairman of the Audit Committee possesses delegation. (Presently more than ₹20 Crore and up to accounting and financial management expertise. The ₹125 Crore for individual projects). minutes of the Audit Committee were placed before the Board for information. (b) To consider reschedulement proposals and other issues relating thereto for projects carrying IREDA’s loan as 4 LOAN COMMITTEE OF DIRECTORS per delegation. (Presently more than ₹20 Crore and up In terms of provisions contained in IREDA’s Articles to ₹125 Crore for individual projects). of Association, the Board of Directors had constituted (c) To consider One Time Settlement (OTS) proposals the Loan Committee of Directors (LCOD) keeping and other issues relating thereto for projects carrying in view the delegation structure and the work IREDA’s loan as per delegation (Presently more than 20 requirement. During the Financial Year 2017-18, the Crore and up to ₹125 Crore for individual projects). Loan Committee of Directors was last reconstituted by the Board of Directors in its 297th meeting held on (d) To consider changes in means of finance, site, November 11, 2017. guarantee(s), validity and other terms & conditions of loan in respect of projects which are within the ambit As on March 31, 2018, the Loan Committee of Directors of LCOD. comprises of the following members: 4.2 Number of Meetings of Loan Committee of Directors 1. Shri K.S. Popli : Chairman of the Chairman & Managing Committee During the Financial Year 2017-18, 9 (Nine) meetings Director of the Loan Committee of Directors (LCOD) were 2. Shri S.K. Bhargava : Member held on i.e. 10/04/2017, 26/05/2017, 27/07/2017, Director (Finance) 22/09/2017, 29/11/2017, 06/12/2017, 13/02/2018, 07/03/2018 and 27/03/2018. Detailed agenda along 3. Shri Chintan N. Shah : Member with explanatory notes were circulated in advance to Director (Technical) the Committee. The Members’ attendance at LCOD 64 meetings held during the Financial Year 2017-18 are as of Directors was last reconstituted by the Board of under: Directors in its 300th meeting held on December 21, 2017. Sl. Name of the Member Designation/ No. of No. No. and Designation Position in the Meeting of the As on March 31, 2018, the Nomination and Committee held during meeting the Tenure Attended Remuneration Committee of Directors comprises of the following members: 1. Shri K.S. Popli Chairman 9 9 (Chairman & Managing Director) 1. Ms. Indu Bala : Chairperson of the Independent Director Committee 2. Shri S.K. Bhargava Member 9 9 Director (Finance) 2. Shri Abhishek Mahawar : Member 3. *Dr. A.K. Tripathi Member 1 1 Independent Director Director (Government Nominee) 3. Shri B.P. Yadav : Member 4. *Shri C.M. Bhatla Member 3 3 Director Director (Government Nominee) (Government Nominee) 5. Shri B.P. Yadav Member 5 5 Director (Government 5.1 Terms of Reference of Nomination & Remuneration Nominee) Committee 6. Shri Abhishek Member 5 5 Mahawar The Terms of Reference, to the extent applicable to Independent Director IREDA, are as under: 7. Shri Chintan N. Shah Member 2 2 Director (Technical) 1. To review the shortlisted candidates for the post of one level below the Board and make The Company Secretary is the Secretary of the recommendations; Committee. 2. To identify suitable candidates for promotion to Note: the posts of one level below the Board; *Dr. A.K. Tripathi & Shri C.M. Bhatla, Directors (Government Nominee) ceased to be Director on the Board of IREDA w.e.f. May 3. To recommend to the Board Annual Bonus 23, 2017 & September 29, 2017 respectively. and policy for its distribution to the executives, within the limits as prescribed by the applicable The Minutes of the LCOD is placed before the Board of law/Guidelines. Directors for information. 4. To frame suitable policies, procedure and 5. NOMINATION & REMUNERATION COMMITTEE systems to ensure that there is no violation of securities law as amended from time to time The Department of Public Enterprises (DPE) vide Office Memorandum dated 26.11.2008, has notified 5. To ensure that the Company has formal and the revision of pay scales for Board level and below transparent procedures for the selection and Board level executives and Non-Unionized Supervisors appointment of Key Management Personnel w.e.f. 01.01.2007. DPE vide the aforesaid Office (excluding Directors) and senior management Memorandum has also directed that each CPSE shall personnel at the level of General Manager and constitute a Remuneration Committee comprising of above in accordance with the criteria laid down; Part-Time Directors or Independent Directors which will decide the annual bonus/variable pool and policy 6. To consider and recommend to the Board for for its distribution across the executives and Non- appointment and removal of Key Management Unionized Supervisors within the prescribed limits. Personnel (excluding Directors) and senior management personnel at the level of General In accordance with the section 178 of the Companies Manager and above in accordance with the Act, 2013, the Board of IREDA had constituted a criteria laid down; Remuneration Committee, known as Nomination & Remuneration Committee. During the Year 2017- 7. to take on record the appointment and removal 18, the Nomination and Remuneration Committee of directors, including independent directors, 65 by the President of India, acting through Name of the Member and Designation/ No. of No. of the administrative ministries; Designation Position Meeting meeting in the held Attended Committee during the 8. to take on record the extension, if any, of Tenure the term of the independent directors of our *Shri A.K. Tripathi Chairman 1 1 Company, as may be directed by the President of Director (Government India, acting through the respective ministries; Nominee) *Shri C.M. Bhatla Member 1 1 9. To ensure that the Company has in place Director (Government Nominee) programmes for the effective induction of new Shri S.K. Bhargava Member 1 1 directors; Director (Finance) Shri B.P. Yadav Member 1 1 10. To take on record the various policies, if any, Director (Government promulgated by the GoI including, inter alia, Nominee) policy on diversity of board of the directors and Shri Abhishek Mahawar Member 1 1 Independent Director criteria for evaluation of performance of the Ms. Indu Bala Chairperson 1 1 directors; Independent Director 11. To attend to any other responsibility as may The Company Secretary is the Secretary of the be entrusted by the Board within the Terms of Committee. Reference; Note: *Dr. A.K. Tripathi & Shri C.M. Bhatla, Directors (Government 12. To carry out any other function contained in the Nominee) ceased to be Director on the Board of IREDA w.e.f. May SEBI Listing Regulations and the Companies 23, 2017 & September 29, 2017 respectively. Act, 2013 as and when amended from time to time; The minutes of the Nomination & Remuneration Committee of Directors (NRC) were placed before the 13. To periodically review the Terms of Reference Board for information. and make recommendations to the Board for changes; 6 CORPORATE SOCIAL RESPONSIBILITY (CSR) COMMITTEE OF DIRECTORS Further, Ministry of Corporate Affairs (MCA) vide notification dated June 5, 2015, has exempted In accordance with the requirement of Companies Act Government Companies from the requirements 2013 and DPE Guidelines, Board Level CSR Committee related to formulation of criteria for determining of Directors was constituted by the Board of Directors. qualifications, positive attributes and independence of Directors and policy relating to remuneration of During the Financial Year 2017-18, CSR Committee Directors. of Directors was last reconstituted by the Board of Directors in its 297th meeting held on November 11, 5.2 Number of Meetings of Nomination & Remuneration 2017. Committee As on March 31, 2018, the Corporate Social During the Financial Year 2017-18, Two meetings Responsibility Committee of Directors comprises of of Nomination & Remuneration Committee were the following members: held on May 16, 2017 & March 27, 2018 wherein the 1. Shri K.S. Popli, : Chairman of the Nomination & Remuneration Committee accorded Chairman & Managing Committee its approval for distribution of Performance Related Director Pay (PRP) for the financial year 2015-16 & 2016-17 as 2. Shri S.K. Bhargava, : Member per the Scheme already approved and in accordance Director (Finance) with DPE guidelines. Detailed agenda along with explanatory statement were circulated in advance to 3. Shri Chintan N. Shah : Member the committee members. The Members’ attendance Director (Technical) at the Nomination and Remuneration Committee’s 4. Shri B.P. Yadav : Member meetings held during the Financial Year 2017-18 are as Director (Government under: Nominee) 66 5. Ms. Indu Bala : Member The Company Secretary is the Secretary of the Independent Director Committee. 6.1 Terms of Reference Note: *Shri C.M. Bhatla, Director (Government Nominee) ceased to be Main tasks / responsibilities of the CSR Committee are Director on the Board of IREDA w.e.f. September 29, 2017. as under: The minutes of the CSR Committee of Directors were I. To assist Board of Directors to formulate placed before the Board for information. suitable policies and strategies to take CSR & Sustainability agenda forward in the desired direction; 7 INVESTMENT COMMITTEE OF DIRECTORS II. To monitor the Corporate Social Responsibility The Investment Committee was last reconstituted Policy of the Company from time to time; by the Board of Directors in its 302nd meeting held on February 7, 2018. The Investment Committee of III. To oversee the implementation of the CSR Directors is informed about the investment proposal activities; and and the availability of surplus funds. IV. To comply with the other requirements on As on March 31, 2018, the Investment Committee of Corporate Social Responsibility Policy as Directors comprises of the following members: amended from time to time. 6.2 Number of Meetings of CSR Committee 1. Shri. K. S. Popli : Chairman of the During the Financial Year 2017-18, 8 (Eight) meetings Chairman and Managing Committee of the Corporate Social Responsibility Committee Director were held viz. on 22/06/2017, 27/07/2017, 06/09/2017, 11/11/2017, 29/11/2017, 07/02/2018, 07/03/2018 and 2. Shri. S.K. Bhargava : Member 26/03/2018. Detailed agendas along with explanatory Director (Finance) statement were circulated in advance to the committee 3. Shri Chintan N. Shah : Member members. Director (Technical) The Members’ attendance at meetings of CSR Committee held during the Financial Year 2017-18 are as under: 7.1 Terms of Reference: Sl. Name of the Member Designation/ No. of No. No. and Designation Position Meeting of the The main tasks / responsibilities of Investment in the held meeting Committee are to make investment of surplus funds Committee during Attended upto 1-year maturity period for investment upto the Tenure ₹1500.00 Crore on each occasion in accordance with IREDA’s investment Guidelines. The decision of 1 Shri K.S. Popli Chairman 8 8 (Chairman and Investment Committee is placed before the Board of Managing Director) Directors in the next Board Meeting. 2 Shri S.K. Bhargava Member 8 8 Director (Finance) 7.2 Number of Meetings of Investment Committee 3 *Shri C.M.Bhatla Member 3 3 Director (Government Nominee) During the Financial Year 2017-18, 3 (Three) meetings 4 Shri B.P. Yadav Member 5 4 of the Investment committee of Directors were held viz. Director (Government on 17th April 2017, 20th July 2017 and 22nd February Nominee) 2018. 5 Ms. Indu Bala Member 5 3 Independent Director The Members’ attendance at meetings of Investment 6 Shri Chintan N. Shah Member 2 2 Committee held during the Financial Year 2017-18 are Director (Technical) as under: 67 Sl. Name of the Member and Designation/ No. of No. of the without the intervention of Committee shall be No. Designation Position Meeting meeting brought before the committee for its resolution. in the held during Attended Committee the Tenure 3. To review and carry out such other matters as 1. Shri K.S. Popli Chairman 3 3 per the directions of the Board of Directors (Chairman and Managing Director) and/or as required under Securities and Exchange Board of India (Listing Obligations 2. Shri S.K. Bhargava Member 3 3 Director (Finance) and Disclosure Requirements) Regulations, 3. Shri C.M. Bhatla Member 2 2 2015 (“SEBI Listing Regulations”) relating to Director (Government corporate governance, as amended, from time Nominee) to time as well as under any other applicable 4. Shri Chintan N. Shah Member NIL NIL statutory rules and regulations. Director (Technical) 8.2 Number of Meetings of Stakeholder Relationship 8 STAKEHOLDERS' RELATIONSHIP COMMITTEE Committee The Company had constituted the Stakeholders' During the Financial Year 2017-18, 3 (Three) meetings Relationship Committee in accordance with the of the Stakeholder Relationship Committee were requirement of the Companies Act, 2013, and the Rules held viz on 14.05.2017, 11.11.2017 and 07.02.2018. made thereunder. The Members’ attendance at meetings of Stakeholder Relationship Committee held during the Financial The Stakeholders' Relationship Committee of Directors Year 2017-18 are as under: was last reconstituted by the Board of Directors in its 297th meeting held on November 11, 2017. Sl. Name of the Member and Designation/ No. of No. No. Designation Position Meeting of the As on March 31, 2018, Stakeholders' Relationship in the held meeting Committee of Directors comprises of the following Committee during the Attended members: Tenure 1. Shri B.P. Yadav : Chairman of the 1. *Dr. A.K. Tripathi Chairman 1 1 Director (Government Director (Government Committee Nominee) Nominee) 2. *Shri C.M. Bhatla Member 1 1 2. Shri S.K. Bhargava : Member Director (Government Director (Finance) Nominee) 3. Shri Chintan N. Shah : Member 3. Shri S.K. Bhargava Member 3 3 Director (Technical) Director (Finance) 4. Ms. Indu Bala : Member Independent Director 4. Shri Chintan N. Shah Member N.A. N.A. Director (Technical) 8.1 Terms of Reference 5. Shri B.P. Yadav Director Chairman 2 2 (Government Nominee) The main tasks / responsibilities of the Stakeholders’ Relationship Committee; 6. Ms. Indu Bala Member 2 1 Independent Director 1. To review the mechanism adopted for redressal of shareholders, debenture holders and other The Company Secretary is the Secretary of the security holder’s complaints; Committee. Note: 2. Consider and resolve the grievances of the *Dr. A.K. Tripathi & Shri C.M. Bhatla, Directors (Government security holders of the Company including Nominee) ceased to be Director on the Board of IREDA w.e.f. May complaints related to non-receipt of declared 23, 2017 & September 29, 2017 respectively. dividend, non-receipt of Annual Report, transfer of shares and transfer of balance sheet The minutes of the Stakeholders' Relationship which has not been resolved within a reasonable Committee of Directors (SRC) were placed before the period or grievance and cannot be resolved Board for information. 68 8.3 Status of Investors Grievances 9. Separate Meeting of Independent Directors The Company has been attending to all investor A separate Meeting of the Independent Directors was grievances expeditiously and promptly. Investor’s held on March 27, 2018 in terms of Schedule IV of grievances have been redressed instantly in Companies Act, 2013 and as per the Guidelines issued coordination with the Registrar and Transfer Agent by DPE on Role & Responsibilities of Non-Official of IREDA. Status of Investors’ Complaints etc. for the Directors (Independent Directors) of CPSEs. period from April 1, 2017 to March 31, 2018 relating to listed Debt Securities are as follows: 10. Remuneration of Functional Directors and Company Secretary Pending at the beginning of the financial year NIL As required under the Corporate Governance Code, Received during the financial year 119 details of remuneration of Functional Directors and Disposed during the financial year 119 Company Secretary of the Company during the Financial Year 2017-18 are as under: Remaining unresolved as on March 31, 2018 NIL Sl. Name Salary & Other Employer PF Employer Total No. Allowances Benefits Contribution Superannuation Contribution 1. Shri K.S. Popli 46,73,259 9,56,001 2,70,352 2,02,764 61,02,376 Chairman and Managing Director 2. Shri S.K. Bhargava 47,79,062 6,55,304 2,39,571 1,79,679 58,53,616 Director (Finance) 3. Shri Chintan N. Shah 1,98,442 25,671 17,291 12,968 2,54,372 Director (Technical) 4. Shri Surender Suyal 31,58,954 2,32,936 2,04,024 1,53,016 37,48,930 Company Secretary 10.1 Sitting Fees to Part-Time Non-Official Director 11 COMPLIANCE WITH APPLICABLE LAWS (Independent Director) The Company has a robust system in place for Sitting fees paid to Part-time Non-Official Directors monitoring of various statutory & procedural (Independent Directors during the Financial Year compliance. The Board periodically reviews the status 2017-18, are as under: of statutory and other procedural compliances to ensure proper compliances of all laws applicable to the Name of the Director Amount(₹) Company. Shri Abhishek Mahawar 3,80,000 Independent Director 12 GENERAL BODY MEETINGS Ms. Indu Bala 2,20,000 1. The details of Date, Time and Location of the last three Independent Director Annual General Meetings held are as under: 69 Financial Day and Date Time Location Whether any Year Special Resolution was passed 2014-15 Tuesday, 29.09.2015 12.30 P.M. The Tamarind Hall, India Habitat Centre, No New Delhi. 2015-16 Wednesday, 19.10.2016 12:30 P.M. Desire Hall, Le Meridien Hotel, 8 Windsor Yes Place, Janpath, New Delhi- 110001 2016-17 Friday 22.09.2017 2.30 P.M. Silver Oak 1, Habitat World, India Habitat Yes Centre, Lodi Road New Delhi-110003 2. There is no special business proposed to be transacted on behalf of President of India acting through in the 31st Annual General meeting. Ministry of New and Renewable Energy. 3. 31st Annual General Meeting for the Financial Year • There were no instances of non-compliance 2017-18 shall be on: by the Company. During the last 03 years, no penalties, strictures imposed on the Company Date : September 5, 2018 by Stock Exchanges or SEBI or any statutory or regulatory authority, on any matter related to Time : 12:30 P.M. capital markets. Venue : The Leela Palace, New Delhi • The Balance Sheet, Statement of Profit and 13 SECRETARIAL AUDIT Loss and Cash Flow Statement for the financial year 2017-18 have been prepared as per the The Secretarial audit for the Financial Year 2017-18 Accounting Standards as applicable under has been conducted by M/s S. C. Baluja & Associates, Section 133 of the Companies Act, 2013. Practicing Company Secretaries, Delhi and they have submitted their Secretarial Report to the Company. • During the financial year 2017-18, no Copy of Secretarial Audit Report forms part of the Presidential Directive was issued by the Central annual report. Government to the Company; 14 DISCLOSURES • The Company has adopted all suggested items to be included in the Report on Corporate • A disclosure on transactions entered into with Governance. the related parties as required by the Accounting Standards (AS) 18 issued by the Institute of • There is no inter-se relationship between Chartered Accountants of India is given at Para Directors of the Company, as per declarations 14 of Note 24 to the accounts in the Annual received. Report. • The Company has not incurred any expenditure, • There were no transactions by the Company of which is not for the purpose of the business. material nature with Promoters, Directors or • Administrative and office expenses as a the Management, their relatives etc. that may percentage of total expenses for the year 2017- have potential conflict with the interests of 18 is 2.44% (Previous year 2.27%) and as a Company at large. The Non-Executive Director percentage of financial expenses for the year had no pecuniary relationships or transactions 2017-18 is 2.90% (Previous year 2.95 %). vis-à-vis the Company during the year in their tenure. None of the Non-Executive Director • During the Financial Year 2017-18, 1 (one) hold any share of the Company except Ms separate meeting of Independent Directors was Gargi Kaul and Shri B.P. Yadav who hold shares held on March 27, 2018. 70 • In pursuance of Guidelines on Corporate 17 TRAINING TO BOARD MEMBERS Governance for Central Public Sector Enterprises (CPSEs), 2010, issued by DPE, It is need based. The Board members based on their compliance reports were submitted to requirement, attended various seminars, conferences, MNRE within 15 days from the close of the training programmes from time to time. During the quarter. Also the Report containing Annual Financial Year, two training programmes have been Score (consolidated score of four quarters) conducted for the Directors of the Company. On was submitted to MNRE with in prescribed appointment, the Board Members are provided with time. necessary documents, reports and internal policies to enable them to familiarize with the Company’s 15 MEANS OF COMMUNICATION procedures and practices. Further, presentations on the business and performance of the Company, are The Company recognizes communication as a made at the Board Meetings. Training programmes key element in the overall Corporate Governance are conducted in order to familiarize the Independent Framework and therefore recognizes continuous, Directors with the working of the Company. The efficient and relevant communication to all external details of the same are available at http://www.ireda. constituencies. The Company communicates through in/writereaddata/Policy_1_Familiarisation%20 its Annual Report, General Meetings and disclosures programme%20of%20Independent%20Director.pdf. through website. The half yearly and annual financial Periodic presentations are made at the Board and results are published in Newspapers. The same is also Committee Meetings to update them on all business- available on the website of the Company, viz. www. related issues and new initiatives undertaken. ireda.in and are submitted to the stock exchange for wider dissemination. 18 WHISTLE BLOWER POLICY Important information pertaining to the Company is Pursuant to the SEBI Regulations Policy on Vigil mentioned in the Annual Report for each Financial Mechanism/Whistle Blower Policy was formulated by Year containing inter alia Audited Accounts, Directors the Board and the same is in place. Report, Auditors Report, Report on Corporate Governance and Non-Banking Financial Companies 19 DETAILS OF DEBENTURE TRUSTEES Auditors’ Report which is circulated to the members The Company has issued Debenture/Bonds from and others entitled thereto. time to time. The Details of the present series of the Half yearly results have been published in prominent Debenture Trustee are mentioned below: daily newspapers as per requirements on the following a. For series I to VI and XIV, GOI Fully Serviced dates: Bonds-MNRE Half year Date of Name of the Business M/s. Vistra ITCL (India) Limited ending Publication Newspapers Plot No. C-22, G Block, 7th Floor (Hindi & Bandra Kurla Complex English) Bandra (East), Mumbai-400051 b. For series XIII 30.09.2017 13.11.2017 The Indian Express (English) and Jansatta M/s. SBICAP Trustee Company Ltd. (Hindi) Apeejay House, 6th Floor, West Wing, 3, Dinshaw Wachha Road, Churchgate, 31.03.2018 28.05.2018 Hindustan Times Mumbai- 400 020 (Final) (English) and Hindustan (Hindi) ****** 16 AUDIT QUALIFICATION There are no Audit Qualification pertaining to Financial Year 2017-18. 71 Annexure-IX Corporate Governance Compliance Certificate Cin : U65100DL1987GOI027265 Nominal Capital : Rs. 60,00,00,00,000/- (Rupees Six Thousand Crores Only) To The Members Indian Renewable Energy Development Agency Limited We have examined all relevant records of Indian Renewable Energy Development Agency Limited (“the Company”) for the purpose of certifying compliance of the conditions of Corporate Governance Guidelines (“guidelines”) issued by the Department of Public Enterprises (DPE) for CPESs, Ministry of Heavy Industries and Public Enterprises, Government of India for the financial year ended on 31st March 2018. The compliance of the conditions of Corporate Governance in accordance with the Guidelines issued by the Department of Public Enterprises (DPE) for CPSEs is the responsibility of the management. Our examination was limited to the procedure and implementation thereof. This certificate is neither an assurance as the the future viability of the Company nor of the efficacy or effectiveness with which the management has conducted the affairs of the Company. On the basis of our examination of the records produced, explanations and information furnished, we certify that the Company has complied with the DPE Guidelines. However, the Company does not have any Independent Director and Woman Director on its Board till 13th September, 2017 and 03rd October, 2017 respectively. Date: 12-07-2018 Place: New Delhi For B Mathur & Co. Companies Secretaries SD/- Naina Goyal Company Secretary C.P. No. 15360 Corporate Office: 63/12, First Floor, Main Rama Road, New Delhi - 110015, India Ph. : +91 11 25101016-17, Mob: +91 9971666825, E-mail: info@bmathurco.in, Web: www.bmathurco.in 72 MANAGEMENT DISCUSSION & ANALYSIS REPORT The Management of IREDA is pleased to present its report India’s total power generation installed capacity reached 346.2 on the Company’s performance during the Financial Year GW by June, 2018 with coal-fired plants accounting for 196.95 2017-18. GW of this installed capacity, followed by renewables that come in at over 71.32 GW. Hydropower projects, gas-based, 1. INDUSTRY STRUCTURE AND DEVELOPMENT nuclear and diesel projects make up the remaining capacity in decreasing order of installed capacity. The renewable energy sector in the country witnessed transformational growth in last few years, in terms of *As on 30.06.2018: 346.2 GW both installed capacity and increasing share of RE in total power generation of the country. The growth is driven by Some of the significant developments in the recent years are the government’s efforts to create a conducive policy and tabulated below: regulatory environment. Also, the developments in power sector such as modernization of transmission capacity and 1. Recent Developments / Achievements in the Power / distribution networks, electrifying villages and extending RE Sector power to all households, have resulted in improvements in • 100 GW total power generation capacity added energy consumption, fiscal discipline in utilities. in last 4 FYs, out of which more than 37.3 GW were India is witnessing a radical change on account of the through RE Sources. RE installed capacity has already government’s move towards power generation via renewable reached over 71 GW as on June, 2018, which is more energy resources, Government has set a target to achieve than 20% of the overall installed power generation 175 GW RE installed capacity by 2022. This includes 60 GW capacity of India. India is aiming for 500 GW with RE 20.60% from wind power, 100 GW from solar power, 10 GW from 350 GW Solar, 140 GW Wind and 10 GW biomass biomass power and 5 GW from small hydro power. Further, power) of RE Power by 2030, based on renewable with increased focus on offshore wind power, floating solar energy technologies. parks and hybrid parks etc., it is expected to overachieve the target by 50 GW i.e. total of 225 GW by 2022. The increased focus of GoI towards renewable energy has created attractive • The Government has set the trajectory of bidding 60 opportunities for investments in this sector. GoI has rightly GW capacity of solar energy and 20 GW capacity recognized RE to be seen not only as sources of energy, but also a tool to address many other pressing needs, including: of Wind energy till 31.03.2020. Projects worth improving energy security and access; reducing the health each 30 GW Solar Power and 10 GW Wind Power and environmental impacts and mitigating greenhouse gas capacity would be bid out each in the year 2018-19 & emissions. 2019-20. 73 • Free Intra State transmission for Solar/ Wind Power Bidding Trajectory (GW) during FYs 2018-19 & in line with interstate transmission etc.:- The interstate 2019-20 transmission system charges and losses for interstate Technology FY 2018-19 FY 2019-20 sale of power of Solar and Wind power for projects to be commissioned by March, 2022, have been waived. Solar Power 34 30 Some of the states, namely Andhra Pradesh and Wind Power 10 10 Telangana, have exempted intra state transmission charges on RE. Whereas, Rajasthan & UP have Manufacturing linked 10 10 exempted the cross-subsidy surcharge. Other states & Solar SERC have been advised to consider the same. Solar - Wind Hybrid 4 3 • Speedy provision of power evacuation facility where Off Shore 1 1 STUs are providing evacuation. The Intra State Transmission system project of Green Energy Corridor Others ( Floating Solar, 2 2 phase-I, is under implementation in 8 RE rich States Biomass, Small Hydro) & expected to be completed by 2019-2022. It is aimed Total 61 56 to complete over 8500 circuit kilometers transmission lines, 48 substations with aggregate capacity of about • In addition, MNRE is also planning to come out with 19000 MVA, which would facilitate evacuation of over bid for setting up of 50 GW grid connected solar power 20 GW RE Power. projects, which would come up over two year period 2020-21 (25 GW) and 2021-22 (25 GW). It shall be • Floating Solar PV (FSPV) Power Plants: In order to coupled with setting up of energy storage systems, conserve the land availability, Floating Solar Plants setting up solar PV manufacturing facilities etc. on Dams; / reservoirs are being encouraged. SECI has invited EoI to install 10 GW of floating solar power • Till date, 41 Solar Parks of aggregate capacity 26,155 plants capacity in phased manner in next three years. MW have been approved in 21 states. The scheme for Recently, UP has floated tenders for setting up of 150 “Development of Solar Parks and Ultra Mega Solar MW of floating Solar PV Projects at Rihand dam in UP. Power Projects” was started on 12.12.2014, it was proposed to set up at least 25 Solar Parks and Ultra • Off-Shore Wind: The global expression of interest (EoI) Mega Solar Park Power Projects targeting over 20,000 for 1000 MW offshore wind energy development in Gulf MW of Solar Power, within a period of 5 years starting of Khambat, Gujarat floated by GoI has been floated. As from 2014-15. Considering the demand for more solar per the meso-scale mapping studies, there is a potential parks in states, the capacity of the scheme has been of 75 GW in Gujarat and 60 GW in Tamil Nadu. enhanced from 20,000 MW to 40,000 MW and these • Wind Solar Hybrid: MNRE has recently issued “Wind projects are proposed to be set up by 2019-20. Under Solar Hybrid Policy” to provide a framework for the scheme, the MNRE provides CFA of 25 lakh per promoting large scale grid connected Wind Solar PV solar park for preparation of DPR, conducting surveys Hybrid systems for optimal and efficient utilization etc. Beside this, CFA of upto 20 lakh per MW or 30% of transmission infrastructure and land, reducing the of the project cost including grid connectivity cost, variability in RE power generation and achieving better whichever is lower, is also provided on achieving the grid stability. The scheme for setting up of 2500 MW prescribed milestone in the scheme. ISTS connected Wind Solar Hybrid projects has been • Automatic Exemption from Land Ceiling Act for approved for bidding through SECI. RE Power Projects: The Ministry has requested the • Government is also coming up with “New Manufacturing States that since both wind and solar projects require Policy” and is planning ₹ 11,000 Crore aid to the solar large area of land, these be exempted from provision of manufacturing sector. Express of interest for setting up Land usage and Land ceiling Act. Further, the Ministry of Solar PV manufacturing linked with assured off - take has issued the advisory to states to allow land to be of 20,000 MW invited by the government. permitted to add solar PV Plants in existing Wind Plants and vice versa, land use change is not required • Small Hydro Power: From a capacity of 63 MW in again for enhancing the efficiency by hybridizing it 1989, the sector has shown an average of 200 MW with other sources. capacity every year since then to reach 4493 MW 74 from 1102 Projects by May 2018 against identified • Other reforms: All states in India onboard for 24x7 potential of about 21 GW. ‘Power for All’ a joint initiative of Government of India and State Governments to provide round the clock • Biomass Power: GoI has advised States for honoring electricity to all; Revised tariff policy for enhanced of PPAs and must run status for projects below 10 MW. ease of doing business and ensuring electricity for all; Further, advised to formulate Biomass policy including Mega Power Policy facilitating competitive bidding for use of Biomass pellets in the existing thermal plants. future Power Purchase Agreements (PPAs), ensuring long term project viability, SHAKTI (Scheme for • The Government of India is coming up with new Harnessing and Allocating Koyala Transparently Scheme ‘Kisan Urja Suraksha evam Utthaan in India), a transformational policy introduced for Mahabhiyan (KUSUM)’ with more focus on rural auction and allotment of coal linkages. areas, farmers interest & solarization of existing grid- connected agriculture pumps etc., • Energy Storage for Grid integration of renewables: MNRE has constituted an Expert Committee with a mandate of proposing Energy Storage mission. Energy storage can act as a capacity in the entire energy value chain - generation, transmission, distribution and loads. • 100 per cent of village electrification achieved under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGKY). • SAUBHAGYA Scheme has been launched during 2017-18 for electrification of all households in the country, through creation of last mile connectivity to all Households in rural and urban areas. Since the launch of the scheme in October 2017, around 74.49 lakh households have been electrified as on 22.6.2018. • From a net importer of electricity to net exporter of electricity: Exported electricity to Nepal, Bangladesh and Myanmar in 2017-18. • Rapid expansion in transmission network: Highest ever transformation capacity addition of 86,193 MVA in FY 2017-18. Inter-regional transfer capacity addition more than tripled (16,000 MW in FY 2010-14 and 50,500 MW in FY 2014-18) • Under UDAY Scheme, during last 4 years, more than Rs 20,000 Crore interest cost saved by DISCOMs, there has been reduction in AT&C losses in 17 states within one year of operation, the revenue gaps have also been bridged by 33 per cent. • Enhanced transparency: Vidyut pravah portal/app with real time information of power availability and electricity price; DEEP (Discovery of Efficient Electricity Prices) portal/app for short and medium term power procurement through transparent e-bidding and e-reverse auction for super price discovery; TARANG app for tracking upcoming transmission projects and progress of ongoing projects; 75 2. Sustainability / Policy Reforms • Policy reforms: Solar power tariff reduced by more than 75% in 3 years using plug and play model Solar India has seen accelerated growth in renewable energy park scheme; National wind-solar hybrid policy landscape during last 4 years. Renewable power installed formulation for promotion of large grid connected capacity has reached over 70 GW. Globally, India stands 4th wind-solar PV system, enhanced grid stability and in wind power 5th in renewable power and 6th in solar power optimal utilization of transmission network. installed capacity. • R&D in Renewable Energy Technology • Solar energy capacity increased by over 8 times from 2.63 GW in 2014 to 22 GW in 2018. Biggest ever Solar • National Lab Policy on Testing, Standardization Power capacity addition in a single year i.e. 9.36 GW and Certification Notified. added during 2017-18 • Quality control order for Solar PV Systems/ components under BIS Act Notified. • Wind energy capacity increased by 1.6 times from 21 GW in 2014 to 34 GW as on March 2018. • Launched New Scheme “Abhinav Soch – Nayi Sambhawanayen” for awarding Innovative Ideas in New and Renewable Energy Sector. In the last two decades, renewable energy sector in India has emerged as a significant player in the grid connected power generation capacity. It supports the government agenda of sustainable growth, while, emerging as an integral part of the solution to meet the nation’s energy needs and an essential player for energy access. It has been realized that renewable energy has to play a much deeper role in achieving energy security in the years ahead and be an integral part of the energy planning process. India has made fast strides in Renewable Energy deployment with the installed capacity increasing from 3.5 GW in 2002 to approximately 70 GW (excluding large hydro) as of April 2018. The government has formulated various policies at the state as well as at the national level to foster investments in the sector. UN Environment Program’s (UNEP) ‘Global Trends in Renewable Energy Investment 2017’ • Falling prices of Renewable energy: A favourable report ranks India among the top 10 countries in the world investment climate supported by global fall in prices, investing in renewable energy. Private sector investments, conducive policies, reverse auction mechanism and primarily driven by various government measures such as large scale of projects has resulted in the tariffs for solar fiscal incentives, Indirect tax benefits and 100% FDI allowance power falling in the range of ₹ 2.5 - 3/ KWh. In certain have been the major drivers of the renewable sector in India states the tariff for solar and wind is below the Average so far. Over US$ 42 billion investment was made in renewable Pooled Power Purchase Cost (APPC) and now offers energy in India during last 4 years. New opportunities have distribution companies a very economical proposition emerged- altogether new business space has been created. for green power. Indian companies have begun to explore foreign stock 76 exchanges as a source of funds. India is progressively becoming 2016, the total global RE capacity has reached 2195 GW* as on a most favored destination for investment in renewables. Dec’ 2017. Overall, renewables accounted for an estimated 70% of net additions to global power capacity in 2017, due in large There have been equity infusion in major Renewable energy part to continued improvements in the cost-competitiveness developer through IPO and foreign investments. More and of solar PV and wind power. Solar PV led the way, accounting more companies are going for consolidations through mergers/ for nearly 55% of newly installed renewable power capacity in demergers & attracting larger investments in the RE Sector. 2017. More solar PV capacity was added than the net additions Indian Renewable Energy market is matured & developers of fossil fuels and nuclear power combined. Wind (29%) and are able to raise funds from international investors, pension hydropower (11%) accounted for most of the remaining funds etc. at very competitive rates. Several Multi-Lateral / Bi capacity additions. Several countries are successfully integrating lateral Agencies like World Bank, KfW, Germany, ADB, the increasingly larger shares of variable renewable power into New Development Bank (NDB), JICA, EIB have also been electricity systems. Renewable-based stand-alone and off-grid extending Lines of Credit in funding Indian RE Sector. single home or mini-grid systems represented about 6% of new electricity connections worldwide between 2012 and 2016. India has committed to revamp its fuel mix in the sector to achieve 175 GW of renewable installed capacity by 2022. Solar PV was the top source of new power generating capacity Though wind energy has predominantly been the largest in 2017, due largely to strong growth in China, with more solar contributor of installed RE capacity, with its contribution PV installed globally than the net additions of fossil fuels and a little below 50%, the share of solar PV has increased nuclear power combined. Global capacity increased nearly considerably from almost 1% to 32% during the last 5-6 years. one-third, to approximately 402 GW. With change in tariff regime from FIT to auctions, Wind power The year 2017 brought tumbling bid prices for both onshore tariff dropped to an all-time low of Rs 2.43 per unit in an and offshore wind power capacity in auctions around the auction conducted by Gujarat Urja Vikas Nigam Ltd (GUVNL) world. Bid prices were down due to technology innovation during December, 2017, boosting clean energy initiatives of and scale, expectations of continued technology advances, the country. Earlier, Solar Energy Corporation of India (SECI) reduced financing costs due to lower perceived risk, and fierce floated a tender to setup 1000 MW ISTS connected wind power, competition in the industry. Electric utilities and large oil and which was oversubscribed 2.6 times and witnessed the tariffs gas companies continued to move further into the industry. dropping to ₹ 3.46 per unit under competitive bidding route. The Wind power had its third strongest year ever, with more than 52 bid was the first of its kind wherein the PPAs have been signed GW added (about 4% less than in 2016) for a total of 539 GW. with an entity that has better credit rating than the distribution companies, contributing to lower pricing. Recently, auctions Top 10 Countries - Solar PV Capacity* of wind power contracts saw tariffs firming up i.e. ₹2.8/-unit –₹3/- unit from recently seen low level of ₹ 2.43/- unit, breaking S. No. Countries Added- 2017 Cumulative a streak of plummeting prices for electricity generated from the (GW) as on- Dec, renewable energy source. This may be seen as a positive sign 2017 (GW) from lender’s perspective, this will instill more confidence in 1. China 53.1 131.1 financing of RE Projects. At present, India has an installed wind capacity of 34 GW. The government has planned to auction 10 2. United States 10.6 51 GW each in 2018- 19 and 2019-20. 3. Japan 7 49 India’s rooftop solar market has crossed 1 GW mark last year. 4. Germany 1.7 42.4 However, at present installation of Roof top solar requires 5. Italy 0.4 19.7 multiple approval and there is no timelines prescribed for providing approvals. In absence of provisions for time bound 6. India 9.1 18.3 approvals, consumers may lose interest on installation of RTS 7. United Kingdom 0.9 12.7 plants even though these are economically viable and giving payback within short periods, the processes for approvals and 8. France 0.9 8 implement of rooftop solar needs to be swifter. 9. Australia 1.3 7.2 Global Status - Renewable Energy 10. Spain 0.1 5.6 Renewable power generating capacity saw its largest annual World total 98 402 increase ever in 2017, raising total capacity by almost 9% over *As per REN 21 Global Status Report for 2018 77 Top 10 Countries - Wind Power Capacity* Global Investment Flows in the RE Sector S. No. Countries Added- 2017 Cumulative Global new investment in renewable power and fuels exceeded (GW) as on- Dec, USD 200 billion annually for the eighth year running. The 2017 (GW) investment total of USD 279.8 billion* in 2017 was up 2% over 1. China 19.7 188.4 2016, despite further cost reductions for wind and solar power 2. United States 7 89 technologies. Investment in new renewable power capacity 3. Germany 6.1 56.1 (including all hydropower) was three times the investment in fossil fuel generating capacity, and more than double 4. India 4.1 32.8 the investment in fossil fuel and nuclear power generation 5. Spain 0.1 23.2 combined. 6. United Kingdom 4.3 18.9 7. France 1.7 13.8 Investment in renewable energy continued to focus on solar power, particularly solar PV, which increased its lead over 8. Brazil 2 12.8 wind power in 2017. Asset finance of utility-scale projects, 9. Canada 0.3 12.2 such as wind farms and solar parks, dominated investment 10. Italy 0.3 9.5 during the year at USD 216.1 billion. Small-scale solar PV World total 52 539 installations (less than 1 MW) saw an investment increase of 15%, to USD 49.4 billion. *As per REN 21 Global Status Report for 2018 Global Investment in New Power Capacity, 2017* Developing and emerging economies overtook developed countries in renewable energy investment for the first time in 2015 and extended their lead in 2017, accounting for a record 63% of the global total, due largely to China. Investment in developing and emerging Hydro power countries increased 20% to USD 177 billion, while that (>50 MW) 10% of developed countries fell 19% to USD 103 billion. China accounted for a record 45% of global investment in renewables (excluding hydropower larger than 50 MW), up from 35% in 2016, followed by Europe (15%), the United States (14%) and Asia-Oceania (excluding China and India; 11%). Smaller shares were seen in the Americas (excluding Brazil and the United States, 5%), Renewables 58% India (4%), the Middle East and Africa (4%) and Brazil (2%). 78 * As per REN21 Global Status Report 2018 In 2017, global issuance of green bonds jumped 67% to a Job Creation / Skill Development in RE Sector record USD 163.1 billion. The strong growth in green bonds was related to a leap in the volume of asset-backed securities The RE Sector has created direct/ indirect employment for issued (mostly linked to residential solar PV systems in the 10.3 million people globally in 2017 only. The prime reason United States), to growth in green bond issuance by sovereign behind this huge scale proliferation in job domain is because governments. IREDA has successfully raised $ 300 million of many factors viz. enhanced domestic inputs, improved through a 5 year rupee-denominated green bond. technology, rising skills in labor, industrial policies, schemes and development in markets. Solar sector continued its mark to provide the maximum amount of jobs (3.4 million jobs), followed by biofuels (1.9 million jobs) large-scale hydropower, wind energy (1.1 million jobs), and solar thermal heating and cooling (807,000 jobs). The RE sector created around 4, 32,000 direct/ indirect jobs in India. The breakneck capacity growth in India created 164,000 jobs in solar PV alone which was up to 36% more jobs as compared to 2016 because of expeditious growth in installation and in operations and maintenance. Followed by solar sector, the wind is the second largest job contributing sector which created approximately 60,500 jobs in India in 2017 alone. As part of skill development, 18,000 Surya Mitra’s have Investment by Type (2017) USD Bn been trained in last 4 years in India. Training of various domains were provided like online training for expediting Global Research and Development 9.9 project, approval, report submission, and monitoring of Asset Finance 216 RTS projects. Small Scale distributed Capacity investment 49.4 2. OUTLOOK Public Market investment 5.7 Electricity demand supply deficit in India has reduced Venture Capital and Private Equity 1.8 significantly from 8.71% energy deficit (MUs) and 8.98% peak demand (MW) deficit during 2012-13 to 0.70% and 2%, Acquisition Activity 114 respectively during 2017-18. 79 India’s Intended Nationally Determined Contribution GW and by 2027 the non-fossil based installed capacity will (INDC) targets 40% of cumulative electric power installed outnumber the fossil based capacity. This assumes that India capacity from non-fossil fuel based energy resource by 2030 will achieve 175 GW of installed renewable capacity by March creates huge Investment Opportunities for Renewable Energy 2022 and subsequently 100 GW of renewable capacity will be Development. As per the 3rd National electricity plan, CEA, added by March 2027. Thus, the renewable energy installed India’s installed capacity of generation in 2022 will be 523 capacity is likely to surpass conventional capacity before 2027. Energy’ in India is at the cusp of disruption, transitioning from • India is spearheading a number of engagements rapid reforms in the sector, that is, enhanced energy availability, on the global platform to address the challenges accessibility and reliability to leapfrogging towards sustainable pertaining to adoption of renewable energy, which energy transformation. Intense implementation and rapid include the International Solar Alliance (ISA), the transformation are key enablers towards this inflection point Mission Innovation, global engagements on rapid that India is witnessing in its renewable energy sector today. de-carbonization of the energy space, the African Some of the positive sectorial changes and developments by Renewable Energy Initiative, the G20 Energy Ministers the Government of India to boost the Indian RE sector are as getting together to see what can be done to look at a under: better future for the world, inter alia. • New Guidelines for Tariff Based Competitive Bidding Renewables being intermittent and variable in nature there are Process to reduce risk, enhance transparency and lot of segments where global technology and service providers increase affordability of Solar Power are planning to penetrate. The country’s clean energy share is • Ministry of New & Renewable Energy (MNRE), World dominated by Solar and Wind, due to ease of scale and rapid Bank & IREDA have been able to work out a proposal transformation in technology and cost. With the projected to channelize US$ 100 Million for creating common pace and mammoth installations in Solar and Wind power infrastructure for ultra-mega solar parks in India to plants happening at GW scale, there is a huge scope for new achieve the 100 GW solar capacity addition target by entrants across the supply chain for smooth transition from 2022. low to high clean energy mix. India can become a hub for 80 advanced energy storage developments coupled to the Completion of IREDA’s Solar Power Project: mega-scale solar PV parks as well as in off-grid systems and residential applications. The installation of 50 MW Solar plant located at Kasargod in the state of Kerala, owned by IREDA is completed and the Largely, Renewable energy is seen as the next big technology project was commissioned on 14.09.2017. The PPA has been industry, with the potential to transform the trillion dollar signed between IREDA & Kerala State Electricity Board on energy industry across the world. Investing in renewable 31.03.2017 and the same is awaiting approval from Kerala energy would enable India to develop globally competitive State Electricity Regulatory Commission. However, KSERC industries and technologies that can provide new opportunities has ordered an interim tariff of ₹3.90/- unit for billing purpose. for growth and leadership by corporate India. The renewable The plant is expected to be handed over by the developer till energy sector in India that is full of opportunities and merits, is September 2018. Accordingly, income from generation activity becoming increasingly attractive for investment. In addition to amounting to ₹20,03,36,920 has been accounted for during the increasing share of renewable energy in India’s energy supply year in respect of 49,685,952 units of energy generated upto mix, India could become a manufacturing hub for renewables. March 2018. The Solar plant has been synchronized with the grid and has started generating power and feeding the same Renewable Energy sector has consistently been on the rise to the grid. both in terms of adding generation capacity and budgetary allocation, meanwhile the tendering trajectory for solar and 4. STRENGTHS, WEAKNESSES & OPPORTUNITIES wind power projects has been formulated to achieve renewable energy revised goal of 175 GW. 30 GW solar projects and Strengths: During the last four years or so, IREDA has taken 10 GW wind projects shall be bid out in 2018-19 and equal rapid strides in the operational performance which resulted numbers in 2019-20. 12.5 GW of wind power projects and in improvement in financial performance. The country has 20 GW solar power projects already bid out in financial year been rapidly adding capacity over last few years, out of which 2017-2018 shall be completed during next two years i.e. 2018- renewable power generation portfolio constitutes more than 19 & 2019-20. 20% of the total power generation installed capacity. Further, in order to meet the target set by Government of India, debt 3. FINANCIAL AND OPERATIONAL funds at a reasonable cost are required to make the investment PERFORMANCE fruitful. Over a period of 30 years, IREDA has acquired unique insights into financing of the RE sector and provides a During the financial year there has been all round growth in comprehensive range of financial services and products from Company’s operations & financial performance. project conceptualization to the post commissioning stage for its clients. These include fund and non-fund based facilities Total Income: During the Financial Year 2017-18, Total for project finance, short terms loans, debt refinancing, bridge Income of your Company grew to ₹1780.02 Crore showing a loans, performance guarantees, long term letters of comfort, growth of 20.14% over ₹ 1481.67 Crore. Credit Enhancement Guarantee Scheme, Scheme for “Access to Energy Projects, Financing of transmission projects, scheme Profit After Tax (PAT): Profit After Tax (PAT) of your on Concentrated Solar Thermal Projects, Top up Loan scheme, Company grew to ₹393.20 Crore during the financial year, Line of credit to Large scale Roof-top solar projects etc.. thereby registering an increase of 7.72% over the previous year’s figure of ₹365.02 Crore. IREDA has successfully raised ₹19.5 billion ( US$ 300 million) through a five-year rupee-denominated Green Bond at an Net Worth: The Net Worth of the Company at the end of annualized coupon rate of 7.125% p.a. which has been the the financial year 2017-18 increased to ₹2,536.58 Crore from lowest among all the green masala bonds issuances so far by ₹2510.01 Crore in the previous financial year. the Indian companies. This is a major milestone for IREDA as it continues to enhance its position in financing of renewable Sanctions: During the financial year 2017-18, your Company energy projects in the country. The overwhelming response sanctioned loans amounting to ₹12,130.01 crore registering to IREDA’s Masala Bond is a testimony of strong investors’ an increase of 18.93 % over the loans of ₹ 10,199.01 Crore confidence in Indian economy and RE sector in particular. sanctioned during the previous financial year. The Cabinet Committee on Economic Affairs (CCEA) has Disbursements: During the financial year 2017-18, your approved IPO issue of 13.90 Crore fresh equity shares of Company disbursed loans amounting to ₹8328.38 crore IREDA of ₹10 each to the public on book-building basis. The registering an increase of 26.31% over the previous year’s IPO will enable IREDA to increase its equity base which will disbursement of ₹6593.49 Crore. help in raising more debt resources for funding Renewable 81 Energy (RE) projects. Such public issue will also enable it to strong backing from the government. Ambitious plans of India unlock its true value and increase its visibility in domestic to ensure 60 GW ground mounted solar and 40 GW supported and international financial markets. The Draft Red Herring by conducive policy framework presents an opportunity Prospectus (DRHP) has already been filed with SEBI and in PV manufacturing. Govt. is also coming up with New obtained In Principle approval. Manufacturing policy to encourage domestic manufacturers. Upgradation to “Schedule A” Category PSU: PESB has One of the biggest developments in the renewable energy already recommended the upgradation proposal of IREDA to marketplace in the last 3-4 years has been the rapid growth Schedule-A Company and Notification by DPE is awaited. in corporate renewables purchases. Some leading commercial and industrial companies are now playing an increasingly Weaknesses: For faster and easier implementation of projects important role in the evolution of the renewable energy sector. and for unlocking economies of scale, projects have been Sale to distribution companies has traditionally been the allocated in higher capacities of as high as 500 MW. Such preferable mode, however the share of corporate procurement projects require large capital outlay and a proportionate debt; is growing, the availability of providers is rising, and the however IREDA finds itself constrained by the size of its own approaches to energy procurement are becoming more capital and net worth, in meeting the funding requirements streamlined. Broad based Renewable Energy financing from of these projects within the framework of prudent financial traditional funding to contemporary RE financing such as discipline. In order to continue to make a significant manufacturing, vendor financing, EVs financing Environment contribution to financing these RE sector projects, it is Efficiency Projects are the new areas which would be looked imperative that IREDA’s net worth be increased commensurate into as new business opportunity. with the financial needs of the sector. However, the IPO issue of 13.90 Crore fresh equity shares of IREDA will enable IREDA The Government has brought new system to avert future NPA to increase its equity base to some extent, which will help in crises i.e., The Insolvency and Bankruptcy Code, 2016. The raising more debt resources for funding Renewable Energy Code seeks to achieve certainty for recovery and enforcement (RE) projects. proceedings and to this extent, it could prove to be useful tool for IREDA to recover from NPA accounts. Renewable energy projects are more prone to technological risks and nature associated risk, rather the risks are high as the Threats, Risks and Concerns: The growth of RE Sector is time horizon associated are long and some of the technologies dependent on encouraging policy framework and the related are in nascent stage . The failure of the entities in meeting their fiscal and financial incentives available thereunder. Reduction power purchase related obligations may adversely impact the or withdrawal of these benefits and adverse fluctuation of profitability of the Company and necessitate the Company foreign currency in which the company has exposure, may to focus on the management of stressed assets and adoption impact the Company adversely. of effective strategies to bring overall improvement in asset quality. The week financial health of DISCOMs poses a major Issues relating to tariffs, grid evacuation, open access, change risk to the growth of power sector. However, the UDAY in applicability of RBI prudential norms, prolonged project scheme launched by the Central Govt. is likely to mitigate the commissioning periods on account of delay in approvals from risk and ensure that the utility operators become profitable by state governments due to lack of single window clearances, 2019 onwards thereby providing major comfort to the lenders. large capital outlay, frequent policy changes and macro- economic conditions, can affect project viability during the Opportunities: The Government has declared the trajectory implementation and operational stages, with negative impact of bidding 60 GW capacity of solar energy and 20 GW capacity on debt servicing capability of the borrowers. of Wind energy till 31.03.2020. Projects worth each 30 GW Solar Power and 10 GW Wind Power capacity would be bid Since renewables are penetrating at a rapid pace in the country, out each in the year 2018-19 & 2019-20. In addition, MNRE there is need for ancillary markets to support scheduling, is planning to come out with bid for setting up of 50 GW grid forecasting and optimal dispatch of electricity. Some states connected solar power projects, which would come up over have raised concerns about safer levels of RE penetration and two year period 2020-21 (25 GW) and 2021-22 (25 GW), this market is picking up and identifying balancing reserves such creates huge business opportunity for IREDA. as batteries, super capacitors, and pumped hydro systems. Current domestic manufacturing is not sufficient to meet The Company’s operations are mandated to be restricted to a the current targets and majority of the project modules are single sector, viz. Renewable Energy only, thereby increasing imported predominantly from China. There are many fiscal its sectoral concentration risk. Therefore, judicious raising incentives in place to boost domestic manufacturing with of resources at a low cost and ensuring most productive 82 deployment of these funds is the key factor for the Company’s The internal audit group monitors and evaluates the efficacy profitability and growth. and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures 5. RISK MANAGEMENT FRAMEWORK and policies of the Company. The Statutory Auditors, during the process of financial audit, also check the internal control Based on the operations of the Company, potential risks are efficacy. identified by the Asset Liability Management Committee and steps are taken to mitigate them. Since major part of the The Audit Committee of the Board periodically reviews key Company’s borrowings in foreign currencies are larger than findings and provides strategic guidance. The Company’s domestic borrowings (loans from bilateral and multilateral Operating Management closely monitors the internal control agencies) the Company has put in place a forex risk environment and ensures that the recommendations are management system and a Forex Management Committee effectively implemented. (FMC) to proactively manage and monitor all the Forex Risk and Derivative-related transactions. Based on the risk appetite 7. HUMAN RESOURCES/ INDUSTRIAL RELATIONS and tolerance limit of the Company, the Board appropriately modified foreign exchange and derivative risk management Your company recognizes people as its most valuable asset limit. The Company is exposed to interest risk in the dynamic and it has built an open and transparent culture to nurture this financial market which shows considerable movement. The asset. Employees are integral as well as critical to the company Company has put in place a Committee to monitor the interest as they are the real assets of the organization. The company rate and fix the lending rates of IREDA based on the market believes in retaining high caliber employees while engaging conditions in comparison to the other peer organizations. and nurturing them to achieve great heights in the area of The company has a system of internal credit rating, besides operations. Attracting, developing and retaining the right independent credit rating for the loan financing to determine talent will continue to be a key strategic imperative and the the interest rate of term loan. organization continues its undivided attention towards that. The Company has been laying string emphasis on attracting Apart from the above specific risk, the Company recognizes and acquiring best talent and also on efficient deployment of various risk inherent to the nature of business such as recovery manpower on the right roles as per business requirements of and threat of becoming NPA. The Company has a robust the Company. During the financial year 2017-18, 17 personnel policy in place to counter these risks to the extent possible. The were selected through campus recruitment in the discipline of Company has a separate Recovery & Monitoring Group which Technical, Finance and Law from premier Institutes. follows up on recovery from stressed and non-performing assets. The employee relationship with the company remained harmonious throughout the year. IREDA, has achieved 929 6. INTERNAL CONTROL SYSTEMS AND THEIR training man days for this financial year, which includes one ADEQUACY week training programme at premier Institutes for more than 15% employees. Your company conducted Departmental IREDA believes that internal control is a necessary prerequisite Promotion Committee in June, 2017 and 27 personnel have of the principle of Governance and that freedom should be been elevated to higher posts. Your company is complying exercised within a framework of checks and balances. The 100% online Appraisal Reports in respect of their employees. Company has an established internal control framework, Total number of employees at the end of the financial year was which is designed to continuously assess the adequacy, 147 excluding 3 Board Level Executives. effectiveness and efficiency of financial and operational controls. The management is committed to ensure an effective 8. ENVIRONMENT PROTECTION AND internal control environment, commensurate with the size and CONSERVATION complexity of its operation, which provides an assurance on compliance with internal policies, applicable laws, regulations The Company’s entire operations are aimed towards sustainable and protection of resources and assets. Testing of such control development. Renewable energy is an environment friendly system forms a part of internal audit functions and same are and sustainable energy alternative. The Company’s primary conducted by M/s Ravi Rajan & Co., Chartered Accountants. mandate is to promote energy generation from renewable The Internal Audit function also proactively recommends sources, in alignment with the country’s and global concerns improvement in operational processes and service quality to on climate change, environment conservation, substitution mitigate various risks. Based on the report of the internal audit of fossil fuels, energy efficiency and sustainable development function, process group head undertake corrective actions, if through environment friendly technologies. The Company any in their respective areas and thereby strengthen the control. not only finances to promote RE Sector but also encourage 83 its borrowers to install efficient equipment and adopt Companies Act 2013 read with Companies (Corporate Social environment friendly practices. The Company has a Policy Responsibility Policy) Rules, 2014. The Company has in place on Environmental and Social Management Systems (ESMS) a separate CSR unit to undertake the CSR programs of the confirming with the national standard and various lenders Company. Further, to oversee the activities of CSR, a CSR requirements with respect to environment and social aspects Committee of Directors has also in place. and has a separate cell for this. During the FY 2017-18, projects worth of ₹11.35 Crore were 9. CORPORATE SOCIAL RESPONSIBILITY sanctioned. The Company has spent ₹3.61 crore during the FY 2017-18 on CSR activities including projects sanctioned in the The Company has in place, a Policy on Corporate Social earlier years. Responsibility based on the DPE Guidelines on CSR & Sustainability for Central Public Sector Enterprises and the 10. SEGMENT-WISE OR PRODUCT-WISE Companies Act, 2013, to ensure that the Company remains a PERFORMANCE socially responsible corporate entity, focusing on sustainable development in encompassing economic, environmental and The Company operates in India, hence it is considered to social imperatives that covers business as well as communities operate only in domestic segment. All operations of the around us. Company are considered as single business segment therefore, the Company does not have any separate reportable segment. The Company discharges its social responsibility obligations as a part of its growth philosophy. It has been your Company’s CAUTIONARY STATEMENT endeavor to act as a responsible corporate citizen committed to improving the quality of life of the society at large. The thrust Statements in Management Discussion and Analysis of CSR and Sustainability is on community development, describing the Company’s objectives, projections, expectations empowerment of communities through education, health and estimates are based on the current business environment. care & sanitation, environment protection, promotion of Actual results could differ from those expressed or implied, green and energy efficient technologies and development of based upon the future economic and other developments, backward regions as per the provisions of Section 135 of the both in India and abroad. 84 Jain Chopra & Company Chartered Accountants F-12, IInd Floor, Bhagat Singh Market, New Delhi-110001 1960, Ist Floor, Outram Line, Delhi-110009 Ph.: 011-23340155, 27652776, Mob.: +91-9810247478 E-mail : jainchopra.company@gmail.com Independent Auditor’s Report To Auditor’s Responsibility The Members of Indian Renewable Energy Development Agency Limited Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into Report on the Standalone Financial Statements account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in We have audited the accompanying standalone financial the audit report under the provisions of the Act and the Rules statements of Indian Renewable Energy Development made thereunder. Agency Limited, (“the Company”), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit We conducted our audit in accordance with the Standards on and Loss and the Cash Flow Statement for the year then Auditing specified under Section 143(10) of the Act. Those ended, and a summary of the significant accounting policies Standards require that we comply with ethical requirements and other explanatory information. and plan and perform the audit to obtain reasonable assurance about whether the standalone financial statements are free Management’s Responsibility for the Standalone Financial from material misstatement. Statements An audit involves performing procedures to obtain audit The Company’s Board of Directors is responsible for the evidence about the amounts and the disclosures in the matters stated in Section 134(5) of the Companies Act, 2013 standalone financial statements. The procedures selected (“the Act”) with respect to the preparation and presentation depend on the auditor’s judgment, including the assessment of these standalone financial statements that give a true and of the risks of material misstatement of the standalone fair view of the financial position, financial performance and financial statements, whether due to fraud or error. In cash flows of the Company in accordance with the accounting making those risk assessments, the auditor considers internal principles generally accepted in India, including the financial control relevant to the Company’s preparation of Accounting Standards specified under Section 133 of the Act, the standalone financial statements that give a true and fair read with Rule 7 of the Companies (Accounts) Rules, 2014. view in order to design audit procedures that are appropriate This responsibility also includes maintenance of adequate in the circumstances. An audit also includes evaluating accounting records in accordance with the provisions of the appropriateness of the accounting policies used and the Act for safeguarding the assets of the Company and for the reasonableness of the accounting estimates made by preventing and detecting frauds and other irregularities; the Company’s Directors, as well as evaluating the overall selection and application of appropriate accounting policies; presentation of the standalone financial statements. making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of We believe that the audit evidence we have obtained is sufficient adequate internal financial controls, that were operating and appropriate to provide a basis for our audit opinion on the effectively for ensuring the accuracy and completeness standalone financial statements. of the accounting records, relevant to the preparation and Opinion presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, In our opinion and to the best of our information and whether due to fraud or error. according to the explanations given to us, the aforesaid 85 standalone financial statements give the information required Report on Other Legal and Regulatory Requirement by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally 1. As required by the Companies (Auditor’s Report) Order, accepted in India, of the state of affairs of the Company as at 2016 (“the Order”) issued by the Central Government 31st March, 2018, and its profit and its cash flows for the year of India in terms of sub-section (11) of section 143 of ended on that date. the Act, we give in the Annexure-A, a statement on the matters specified in the paragraph 3 and 4 of the Order, Emphasis of Matter to the extent applicable and in terms of sub-section (5) of section 143 of the Act we give in the Annexure-B We draw attention to the following matters on the standalone information in respect of the directions issued by the financial statements Comptroller and Auditor-General of India. Refer Note: 2. As required by Section 143 (3) of the Act, we report i. No. 24(30): The company has changed its accounting that: policy on recognition of foreign exchange profit/loss a) we have sought and obtained all the information on translation of unhedged foreign exchange long term and explanations which to the best of our monetary items. The company was hitherto charging knowledge and belief were necessary for the all such profits/losses to the statement of profit & loss. purposes of our audit; The company has now started amortizing such forex gains/losses over the residual period of respective b) in our opinion, proper books of account as maturities of such forex items by opting the option required by law have been kept by the Company available in Accounting Standard 11 on ‘The Effects of so far as it appears from our examination of changes in Foreign Exchange Rates’. Consequently, the those books; profit before tax and after tax for the year is higher by Rs. 21,391.95 lacs and Rs.15,145.13 lacs respectively. c) the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow Statement dealt with by ii. No. 24(32): M/s Wind World India a company that has this Report are in agreement with the books of stood as Corporate Guarantor to loans amounting to account; Rs. 17,924.03 lacs given by the company to the entities, which are subsidiaries of the said company, has been d) in our opinion, the aforesaid financial statements referred to National Company Law Tribunal (NCLT). comply with the Accounting Standards specified Further loans amounting to Rs 11,630.15 lacs to one of under Section 133 of the Act, read with Rule 7 such entities has become Non Performing Asset during of the Companies (Accounts) Rules, 2014; the year. The effect of such action on other loans cannot e) the company being a Government Company, the be stated. provisions of Section 164(2) are not applicable iii. No. 24(9) regarding the obligation under section 135 to the company; of The Companies Act, 2013 on Corporate Social f) with respect to the adequacy of the internal Responsibility (CSR) having not been discharged financial controls over financial reporting of during the year. the company and the operating effectiveness iv. No. 24(21) which states that specific audit of accounts of such controls, refer to our separate report in of Generation Based Incentive funds has not been “Annexure C’’; and done. g) with respect to the other matters to be included v. General Provision for Standard Assets amounting to Rs. in the Auditor’s Report in accordance with Rule 1,759.65 lacs made in the accounts include Rs.719.19 11 of the Companies (Audit and Auditors) lacs for restructured account. Rules, 2014, in our opinion and to the best of our information and according to the explanations Our opinion is not modified in respect of these matters. given to us: 86 i. the Company has disclosed the impact iii. there is no amount, required, to be of pending litigations on its financial transferred by the Company to the position in its standalone financial Investor Education and Protection Fund. statements – Refer Note 24(3) to the standalone financial statements; For JAIN CHOPRA & COMPANY Chartered Accountants ii. the Company did not have any long- Firm’s Registration No. 002198N term contracts including derivative contracts for which there were any Sd/- material foreseeable losses; Place: New Delhi Ashok Chopra Dated: 26.05.2018 Partner (Membership No.017199) 87 Annexure-A to the Independent Auditors’ Report i) a) The company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets; b) We are informed that the management had physically verified the fixed assets during the year and no discrepancies were noticed on such verification. c) On the basis of information and explanations provided, the properties have been allotted in the name of the company but in the case of its office premises at India Habitat Centre and at August Kranti Bhawan, New Delhi, and its residential flat at Jangpura, New Delhi, the title deeds have yet to be executed. ii) The company does not hold any inventories as such the provisions are not applicable. iii) According to the information and explanations provided, the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act. iv) In respect of loans given to its whole time directors the same are covered under the exclusion as stated in the proviso to sub-section 1 of section 185. The provision of section 186 is not applicable to the company as the company is engaged in the business of financing companies. Further the provision of sub-section 1 of section 186 is not applicable as the company does not have any subsidiary company. v) The company has not accepted any deposits to which the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed thereunder apply. vi) According to the information and explanations provided, The Central Government has not prescribed the maintenance of cost records under sub-section (1) of section 148 of the Companies Act, and the rules made thereunder, in the case of the Company. vii) a) As per the records, the company is generally regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax/Goods & Service Tax, cess and other statutory dues with the appropriate authorities. b) The Company is in appeal in the following cases: Name of the Statute Subject Ass. Yr. Amount in Rs. Crore Forum Income Tax Act, 1961 Income Tax 2010-11 13.44 CIT(Appeals) Income Tax Act, 1961 Income Tax 2011-12 14.96 CIT(Appeals) Income Tax Act, 1961 Income Tax 2012-13 15.19 CIT(Appeals) Income Tax Act, 1961 Income Tax 2013-14 22.16 CIT(Appeals) Income Tax Act, 1961 Income Tax 2014-15 15.47 CIT(Appeals) Income Tax Act, 1961 Income Tax 2015-16 23.11 CIT(Appeals) viii) The company has not defaulted in repayment of dues to a financial institution or bank or debenture holders during the financial year. ix) The company has raised moneys through Bonds and were applied for the purposes for which those are raised. x) According to the information explanations provided, no fraud committed on or by the company has been noticed or reported during the course of our audit. xi) The company being a Government Company, the provisions relating to Managerial Remuneration do not apply to the company in terms of MCA Notification issued dated 5th June 2015. xii) The company is not a Nidhi Company. 88 xiii) On the basis of information and explanations provided, the transactions with related parties are in compliance with Section 177 and 188, wherever applicable, and have been disclosed in the Financial Statements etc., as required by the applicable accounting standards. xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the period under review. xv) On the basis of information and explanations provided, the company has not entered into any non-cash transactions with the Directors or persons connected with them. xvi) Yes. The company is required and is registered with Reserve Bank of India under Section 45-IA of The Reserve Bank of India Act, 1934. For JAIN CHOPRA & COMPANY Chartered Accountants Firm’s Registration No. 002198N Sd/- Place: New Delhi Ashok Chopra Dated: 26.05.2018 Partner (Membership No.017199) 89 Annexure- B to the Independent Auditors’ Report Directions under section 143(5) of the Companies Act, 2. Whether there are any cases of waiver/write off of 2013 issued by the Comptroller & Auditor General of India. debts/loans/interest etc., if yes, the reasons there for and amount involved. 1. Whether the company has clear title/lease deeds for freehold and leasehold respectively? If not please state Answer:- During the year the company had sanctioned the area of freehold and leasehold land for which title/ settlements of seven of its borrowers under its One lease deeds are not available? Time Settlement Scheme. Out of these, six accounts had already been technically written off in earlier years. Answer:- On the basis of information and explanations In the seventh case, which was considered doubtful of provided, the company holds clear title to the recovery and full provision had been made for, there properties, which have been allotted/purchased in is no waiver of principal outstanding at Rs. 552.65 the name of the company. The title deeds/lease deeds lacs. However unrealized amount of interest and other have yet to be executed in the case of its office premises charges amounting to Rs. 335.32 lacs has been waived in New Delhi at India Habitat Centre (Area 1048.79 by way of sacrifice. sqmtr) and at August Kranti Bhawan, (Area 1813.175 sqmtr), and its residential flat in New Delhi at Jangpura, 3. Whether proper records are maintained for inventories (170.40sqmtr). lying with third parties & assets received as gift/grant(s) from the Govt. or other authorities. Further, on the basis of information provided, in respect of the solar plant, the land is owned by Kerala State Answer:- The Company does not have any inventories. Electricity Board (KSEBL), Govt. of Kerala who will Further as per information and explanations provided lease out the same to Renewable Power Corporation of the Company has not received any Grants from the Kerala Ltd.(RPCKL). Govt. or other authorities during the year. The Company has been informed that no lease money will be payable for the first five years. However, the For JAIN CHOPRA & COMPANY terms of the lease for the remaining period is not Chartered Accountants known as on date. The company does not acquire any Firm’s Registration No.002198N title to the land. Sd/- Place: New Delhi Ashok Chopra Dated: 26.05.2018 Partner (Membership No. 017199) 90 ANNEXURE-C TO THE INDEPENDENT AUDITOR’S REPORT Report on the Internal Financial Controls under Clause (i) Our audit involves performing procedures to obtain audit of Sub-section 3 of Section 143 of the Companies Act, 2013 evidence about the adequacy of the internal financial (“the Act”) controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over We have audited the internal financial controls over financial financial reporting includes obtaining an understanding of reporting of Indian Renewable Energy Development internal financial controls over financial reporting, assessing Agency Limited, (“the Company”) as of March 31, 2018 in the risk that a material weakness exists, and testing and conjunction with our audit of the financial statements of the evaluating the design and operating effectiveness of internal Company for the year ended on that date. control based on the assessed risk. The procedures selected Management’s Responsibility for Internal Financial depend on the auditor’s judgement, including the assessment of Controls the risks of material misstatement of the financial statements, whether due to fraud or error. The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal We believe that the audit evidence we have obtained is control over financial reporting criteria established by the sufficient and appropriate to provide a basis for my /our audit company considering the essential components of internal opinion on the Company’s internal financial controls system control stated in the Guidance Note on Audit of Internal Financial over financial reporting. Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include Meaning of Internal Financial Controls over Financial the design, implementation and maintenance of adequate Reporting internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, A company’s internal financial control over financial reporting including adherence to company’s policies, the safeguarding of is a process designed to provide reasonable assurance regarding its assets, the prevention and detection of frauds and errors, the the reliability of financial reporting and the preparation of accuracy and completeness of the accounting records, and the financial statements for external purposes in accordance timely preparation of reliable financial information, as required with generally accepted accounting principles. A company’s under the Companies Act, 2013. internal financial control over financial reporting includes those policies and procedures that Auditors’ Responsibility (1) pertain to the maintenance of records that, in reasonable Our responsibility is to express an opinion on the Company’s detail, accurately and fairly reflect the transactions and internal financial controls over financial reporting based on dispositions of the assets of the company; our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over (2) provide reasonable assurance that transactions are Financial Reporting (the “Guidance Note”) and the Standards recorded as necessary to permit preparation of on Auditing, issued by ICAI and deemed to be prescribed financial statements in accordance with generally under section 143(10) of the Companies Act, 2013, to the accepted accounting principles, and that receipts and extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls expenditures of the company are being made only in and, both issued by the Institute of Chartered Accountants of accordance with authorisations of management and India. Those Standards and the Guidance Note require that directors of the company; and we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether (3) provide reasonable assurance regarding prevention or adequate internal financial controls over financial reporting timely detection of unauthorised acquisition, use, or was established and maintained and if such controls operated disposition of the company’s assets that could have a effectively in all material respects. material effect on the financial statements. 91 Inherent Limitations of Internal Financial Controls over the essential components of internal control stated in the Financial Reporting Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Because of the inherent limitations of internal financial Accountants of India. controls over financial reporting, including the possibility of collusion or improper management override of controls, a. Delegation of authority at various levels to be reviewed material misstatements due to error or fraud may occur and and is pending for a number of years. not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future b. Information technology system for maintenance of periods are subject to the risk that the internal financial control records to be updated. over financial reporting may become inadequate because of c. Preparation of IT enabled process in respect of income changes in conditions, or that the degree of compliance with under miscellaneous heads is in progress. the policies or procedures may deteriorate. Opinion For JAIN CHOPRA & COMPANY In our opinion, subject to the following, the Company has, in Chartered Accountants all material respects, an adequate internal financial controls Firm’s Registration No. 002198N system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial Sd/- reporting criteria established by the Company considering Place: New Delhi Ashok Chopra Dated: 26.05.2018 Partner (Membership No.017199) 92 Jain Chopra & Company Chartered Accountants F-12, IInd Floor, Bhagat Singh Market, New Delhi-110001 1960, Ist Floor, Outram Line, Delhi-110009 Ph.: 011-23340155, 27652776, Mob.: +91-9810247478 E-mail : jainchopra.company@gmail.com NON BANKING FINANCIAL COMPANIES AUDITOR’S REPORT The Board of Directors, Indian Renewable Energy Development Agency Limited New Delhi – 110066. Dear Members , As required by the Non-Banking Financial Companies Auditor’s Report (Reserve Bank) Directions, 2016 issued by the Reserve Bank of India on the matters specified therein to the extent applicable to the Company, we report that: 1. The company is engaged in the business of non-banking financial institution, having a valid certificate No. 14.000012 issued on 23rd January, 2008 in lieu of the earlier Certificate No.-14.000012 dated 10th February, 1998 pursuant to the company’s application for registration as per provisions of Section 45-1A of the Reserve Bank of India Act, 1934. 2. The company is entitled to continue to hold such COR in terms of its Principal Business Criteria (Financial asset/income pattern) as on March 31, 2018. 3. The company is meeting the required net owned fund requirement as laid down in Master Direction - Non-Banking Financial Company - Systemically Important Non-Deposit Taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 . 4. The Board of Directors , in a resolution passed by through circulation on 23rd April, 2018, have resolved that the company will not accept public deposit during the financial year 2018-19 without prior approval of the Reserve Bank of India. The same was ratified in the 305th meeting of the Board of Directors held on 14th May, 2018. 5. The company has not accepted any public deposits during the financial year 2017-18. 6. In respect of Systemically Important Non-deposit taking NBFCs as defined in Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016: a) The capital adequacy ratio as disclosed in the annual return submitted to the Bank has been correctly arrived at and such ratio is in compliance with the minimum CRAR prescribed by the Bank. b) The company has furnished to the Bank the annual statement of capital funds, risk assets/exposures and risk asset ratio within the stipulated period. 7. The Non-Banking Finance Company has been correctly classified as systemically important Non-Deposit Taking Company. 8. The company has complied with the prudential norms relating to income recognition, asset classification and provisioning for the bad and doubtful debts as approved by the Board of Directors of IREDA in terms of Article of Association. The company has also complied with the Accounting Standards as per the Companies (Accounting Standard) rules, 2006. For JAIN CHOPRA & COMPANY Chartered Accountants Firm’s Registration No. 002198N Sd/- Place: New Delhi Ashok Chopra Dated: 05.06.2018 Partner (Membership No.017199) 93 COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) OF THE COMPANIES ACT, 2013 ON THE FINANCIAL STATEMENTS OF INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED FOR THE YEAR ENDED 31 MARCH 2018 The preparation of financial statements of the Indian Renewable Energy Development Agency Limited for the year ended 31 March 2018 in accordance with the financial reporting framework prescribed under the Companies Act, 2013(Act) is the responsibility of the management of the Company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under section 139(5) of the Act is/are responsible for expressing opinion on the financial statements under section 143 of the Act based on independent audit in accordance with 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 26th May 2018. I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6) (a) of the Act of the financial statements of Indian Renewable Energy Development Agency Limited for the year ended 31 March 2018. 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 personnel and a selective examination of some of the accounting records. On the basis of my audit nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors’ report. For and on the behalf of the Comptroller & Auditor General of India Place: New Delhi Date: 18.07.2018 Sd/- (L. Siddhartha Singh) Principal Director of Commercial Audit & Ex-Officio Member, Audit Board-IV 94 INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED Balance Sheet as at 31.03.2018 Particulars Note As at 31.03.2018 As at 31.03.2017 No. ( Rs. / Lakhs ) ( Rs. / Lakhs ) I. EQUITY AND LIABILITIES (1) Shareholders’ Funds (a) Share Capital 2 78,460.00 78,460.00 (b) Reserves and Surplus 3 1,75,198.47 1,72,541.11 (2) Share Application Money pending allotment - - (3) Non-current liabilities (a) Long-term borrowing 4 14,39,471.76 12,63,109.93 (b) Deferred tax liabilities (Net) 24(16) 773.87 - (c) Other long-term liabilities 5 1,90,394.60 1,87,685.43 (d) Long-term provisions 6 6,803.48 5,628.20 (4) Current liabilities (a) Short-term borrowing 7 - - (b) Trade payables 8 13,868.41 13,776.82 (Includes balance payable to MSME - Nil (Previous year Nil)) (c) Other current liabilities 9 1,11,292.54 1,38,922.72 (d) Short-term provisions 10 11,466.69 10,295.14 TOTAL 20,27,729.82 18,70,419.34 II. ASSETS (1) Non-current assets (a) Fixed Assets 11 (i) Tangible assets 31,371.92 31,728.73 (ii) Intangible assets 25.21 21.68 (iii) Capital work-in-progress 303.19 - (iv) Intangible assets under development 5.59 21.40 31,705.91 31,771.80 (b) Non-current investments 12 12.00 12.00 (c) Deferred tax assets (Net) 24(16) - 5,462.15 (d) Long-term loans and advances 13 12,52,675.78 10,43,632.85 (e) Other non-current assets 14 1,85,112.68 1,59,368.51 (2) Current assets (a) Trade Receivable 15 2,191.62 239.62 (b) Cash and bank balances 16 2,31,816.94 3,13,896.28 (c) Short-term loans and advances 17 3,08,372.48 2,99,052.33 (d) Other current assets 18 15,842.41 16,984.81 TOTAL 20,27,729.82 18,70,419.34 Significant Accounting Policies 1 Notes on Financial Statements 2 to 24 As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 95 INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED Statement of Profit and Loss for the year ended on 31.03.2018 Particulars Note For the year For the year No. ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) I. Revenue from operations 19 1,77,912.99 1,47,926.80 II. Other Income 20 89.11 240.36 III. Total Revenue (I+II) 1,78,002.10 1,48,167.16 IV. Expenses: Employee Benefit Expenses 21 4,444.87 2,807.18 Finance Cost 22 1,02,522.49 72,593.85 Depreciation and Amortisation Expenses 11 2,132.82 731.96 Other Expenses 23 2,971.74 2,143.62 Bad Debts Written Off - - Less: Provision for Bad and Doubtful Debts - - created in earlier years written back Provision for Bad and Doubtful Debts 8,087.87 12,390.93 General Provision for Standard Assets 1,759.65 3,894.07 Prior Period Adjustments (Net) 24(17) 7.71 (181.80) 1,21,927.1 6 94,379.82 V. Profit before Exceptional & Extraordinary items and tax (III-IV) 56,074.94 53,787.34 VI. Exceptional items - 969.40 VII. Profit before Extraordinary items and tax (V-VI) 56,074.94 52,817.94 VIII. Extraordinary items - - IX. Profit before tax (VII-VIII) 56,074.94 52,817.94 X. Tax Expenses (1) Current Tax 10,519.00 15,558.11 (2) Income Tax- Earlier Years - - (3) Deferred Tax 6,236.02 758.31 XI. Profit for the period (IX-X) 39,319.92 36,501.52 XII. Earning per Equity Share: (1) Basic & Diluted (Annualised) (Rs.) 501.15 465.22 (Due to subdivision of shares (of F.V. Rs. 10/-), the previous year (ending 31.03.17) is 24(11) 5.01 4.65 not comparable. However the same has been re-grouped for matching & comparison.) (On F.V. Rs. 10/-) Significant Accounting Policies 1 Notes on Financial Statements 2 to 24 As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 96 NOTE ‘1’ SIGNIFICANT ACCOUNTING POLICIES 1) General The financial statements are prepared on accrual basis of accounting under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India as per section 129, the Accounting Standards referred to in Section 2 clause II of The Companies Act, 2013 and other relevant provisions of the said Act. 2) Revenue and Expense Recognition (i) Income and expenses are accounted for on accrual basis with the exception of : (a) Income on Non- Performing Assets where interest and/or principal has remained overdue for a period of more than two quarters at the end of financial year, is recognized as and when actually realized. (b) The interest income – funded interest/ overdue interest in respect of Non Performing Assets (NPAs) which are partly refinanced on the basis of National Clean Energy Fund (NCEF) Scheme approved by MNRE - in this regard the interest income is recognized as and when such accounts are eligible under the scheme and 100% provision in respect of such income recognized is made . (ii) (a) Loan/Bond issue expenses such as Front-end fee/Arranger’s fee, Stamp duty, etc., are charged to Statement of Profit and Loss in the year of issue of such loan/bond after utilization of security premium amount , if available and (b) Discount on bond issuance or any excess in amount payable on redemption of bonds over issue price are amortised over the tenor of bond and same shall be charged to Statement of Profit and Loss during the tenor of bond after utilization of security premium amount , if any . (iii) Prepaid expenses and prior period expenses/income upto Rs. 20,000/- per item are charged to Statement of Profit & Loss as and when incurred/adjusted/received. (iv) Insurance claims are accounted for as and when admitted by the insurance company. (v) Asset Classification and Provisioning with respect of Loans : • Assets classification a) Standard Asset: - An asset is classified as Standard Asset if it is not a Non-Performing Asset (NPA). b) Non performing Asset: A non-performing asset (NPA) is a loan where: ➢ An asset, in respect of which, interest and/ or principal has remained overdue for a period of more than two quarters. ➢ The company classifies NPAs at the end of the financial year. c) The Non-performing Asset is further classified as below:- I. Sub-standard Assets A sub-standard asset is one, which has remained NPA for a period of upto 18 months. 97 II. Doubtful Assets A doubtful asset is one, which has remained in the substandard category for a period exceeding 18 months. III. Loss assets A Loss asset is one which is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value and where loss has been identified by the company or internal or external auditors or any other relevant Government authority but the amount has not been written off wholly or the asset remains doubtful asset for a period exceeding 5 years. Provisioning against loans The provisioning in respect of loans & advances is made as under: (i) Standard Assets: provision in respect of Standard Assets is made @ 0.40% in respect of the outstanding standard assets. In addition, the Board of Directors may decide to create floating provision on Standard Asset. The floating provision can not be reversed by credit to statement of P&L Account. It can only be utilised for making specific provisions in respect of impaired accounts. (ii) Sub-standard Assets: A provision of 10% of loan outstanding is made. (iii) Doubtful Assets: 100% of the extent to which the loan is not covered by the realisable value of the security to which IREDA has a valid recourse. With regard to secured portion of loan, provision as follows is made:- Period for which the asset has been % of provision considered as doubtful Upto one year 20% 1 to 3 year 30% More than 3 years Between 50% to 100% of loan outstanding depending upon risk perception. (iv) Loss Assets: 100% of the loan outstanding is provided for. 3) Foreign Currency Transactions (i) Transactions in foreign currency (except the foreign currency loans where derivative transactions have been made with banks), are recorded at the exchange rate prevailing at the date of the transaction. The exchange differences arising on reporting of long-term foreign currency monetary items, other than the hedged items, at RBI reference rates prevailing at the end of each reporting period, different from those at which they were initially recorded during the period, or reported in previous financial statements, are accumulated in a “Foreign Currency Monetary Item Translation Difference Account” and amortized over the balance period of such long term monetary item, by recognition as income or expense in each of such periods. Long-term foreign currency monetary items are those which have a term of twelve months or more at the date of origination. Short-term foreign currency monetary items (having a term of less than twelve months at the date of origination) are translated at RBI reference rates prevailing at the end of each reporting period. The resultant exchange fluctuation is recognized as income or expense in each of such periods. (ii) The transaction in foreign currency loans, where Derivative transaction take place, are recorded at the contracted exchange rate on deal date till the Period of maturity of derivative deals. The difference between the exchange rate at the date of transaction and derivatives rate is recognized as income or expense in the Statement of Profit and Loss. 98 (iii) Derivative transactions includes principal swap, Currency & Interest Rate Swap (CIRS), forwards, interest rate swaps, cross currency swaps, currency and cross currency options etc. to hedge foreign currency assets and liabilities. (iv) These derivative transactions are done for hedging purpose and not for trading or speculative purpose. These are accounted for on accrual basis and are not marked to market. 4) Fixed Assets Fixed assets are stated at historical cost less accumulated depreciation. 5) Intangible Assets Intangible assets are recognized when it is probable that future economic benefit attributable to the assets will flow to the company and the cost of the assets can be measured reliably. Such assets are stated at cost less accumulated amortization. 6) Depreciation/Amortization (i) Depreciation on fixed assets (including leasehold properties, Roads and Leaseholds land of Solar Power Project) other than on library books, intangible assets and assets of solar power plant, is provided as per the useful life mentioned and in the manner prescribed in Schedule II of The Companies Act, 2013 on written down value method. (ii) Depreciation on Library books is provided @ 100% in the year of purchase. (iii) Intangible assets are amortized over their estimated useful life. The estimated useful life does not exceed 10 years. (iv) Depreciation on assets excluding Roads and Leaseholds land of Solar Power Project has been provided on Straight Line Method at rates/methodology prescribed under the relevant Central Electricity Regulatory Commission (CERC) and relevant state Commission Tariff Orders. (v) Depreciation is provided @100% in the financial year of purchase in respect of assets of Rs. 5000 or less. 7) Investments Long term investments are carried at cost. Provision for diminution in the value of such investments is made to recognize the decline other than temporary, in the value of the investments. 8) Loans Loans secured against Hypothecation, English Mortgage, Equitable Mortgage and Joint Equitable Mortgage and guaranteed by Banks/Financial Institution/Central Government/State Government as the case may be, are classified as fully secured. 9) Grants (i) Grants for acquisition of eligible fixed assets are accounted for as capital grants. Such grants are allocated to income over the periods and in the proportions in which the depreciation on those assets is charged. (ii) Grant-in-aid for financing projects in specified sectors of New and Renewable Sources of Energy (NRSE) is treated and accounted for as Capital Reserve/Grant. (iii) The expenditure incurred under Technical Assistance Programme (TAP) is accounted for as recoverable and shown under the head ‘Current Assets’. The assistance reimbursed from Multilateral/Bilateral Agencies is credited to the said account. 99 10) Employee Benefits (A) Short Term Employee Benefits Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the Statement of Profit and Loss of the year in which the related service is rendered. (B) Retirement Benefits 1. The liability for retirement of employees in respect of provident fund, benevolent fund, superannuation fund and Gratuity, which is ascertained annually on actuarial valuation at the year end, are accrued and funded separately. 2. The liabilities for leave encashment, sick leave and post retirement medical benefits and baggage allowance to employees are accounted for on accrual basis based on actuarial valuation at the year end. 11) Borrowing Cost Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets . All other borrowing costs are recognized as an expense in the period they are incurred . 12) Provisions and Contingent Liabilities (i) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:- (a) the Company has a present obligation as a result of a past event; (b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and (c) the amount of the obligation can be reliably estimated. (ii) Contingent liability is disclosed in the case of:- (a) a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or; (b) a possible obligation, unless the probability of outflow in settlement is remote. (iii) Reimbursement expected in respect of expenditure required to settle any liability is recognized only when it is virtually certain that the reimbursement will be received. 100 Notes on Standalone Financial Statements for the year ended 31.03.2018 NOTE-‘2’ SHARE CAPITAL PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Authorised 6,00,00,00,000 Equity Shares of Rs. 10 each. 6,00,000.00 6,00,000.00 (Previous year 6,00,00,000 Equity Shares of Rs. 1,000 each.) Issued, Subscribed & Fully Paid up 78,46,00,000 Equity Shares of Rs. 10 each fully paid up 78,460.00 78,460.00 (Previous Year 78,46,000 Equity Shares of Rs. 1,000 each). Total 78,460.00 78,460.00 Reconciliation of Equity Shares PARTICULARS Equity Shares Equity Shares Number ( Rs. / Lakhs ) Number ( Rs. / Lakhs ) 2017-18 2016-17 Shares outstanding -Opening 78,46,00,000.00 78,460.00 78,46,000.00 78,460.00 Shares issued during the period - - - - Shares bought back during the period - - - - Shares outstanding -Closing 78,46,00,000.00 78,460.00 78,46,000.00 78,460.00 Foot Notes: (i) 100% Equity Shares are held by Government of India. (ii) Equity Shareholders have full voting rights with no restrictions. (iii) All the Equity Shares are fully paid up in cash. 101 NOTE-‘3’ RESERVES & SURPLUS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) a. Capital Reserves i. Capital Grant from world bank for purchase of Fixed Assets Opening Balance 1.99 4.15 (+) Received During the year - - (-) Transferred to Miscellaneous Income - 2.16 Closing Balance 1.99 1.99 ii. Grant-in-aid from Government of Netherlands 1,678.59 1,678.59 iii. Grant-in-aid from World Bank 8,394.84 8,394.84 iv. Other Capital Grant 601.44 601.44 v. Securities Premium Opening Balance 5.04 5.04 (+) Addition during the year - - (-) Written Back in Current Year 5.04 - Closing Balance - 5.04 10,676.86 10,681.90 b. Special Reserve (under Section 36(1)(viii) of the Income Tax Act, 1961) Opening Balance 65,831.99 54,136.09 (+) Addition during the year 7,819.15 11,695.90 (-) Written Back in Current Year - - Closing Balance 73,651.13 65,831.99 c. Debenture Redemption Reserve Opening Balance 12,022.82 7,393.71 (+) Addition during the year 4,629.11 4,629.11 (-) Written Back in Current Year - - Closing Balance 16,651.93 12,022.82 d. General Reserve Opening Balance 83,967.70 78,917.70 (+) Addition during the year 11,600.00 5,050.00 (-)/(+) Transfer to / from Profit & Loss Account - - Closing Balance 95,567.70 83,967.70 e. Foreign Currency Monetary Item Translation Difference Account Opening Balance - - (+) Foreign Currency Gains/ Loss on Long term monetary items during the year (23,581.56) - (-) Amortisation during the year 2,189.61 - Closing Balance (21,391.95) - f. Profit & Loss Account Opening Balance 36.70 15.15 (+) Net Profit for the current year 39,319.92 36,501.52 (-) Interim Dividend 10,500.00 10,000.00 (-) Corporate Dividend Tax on Interim Dividend 2,137.55 2,035.76 (-) Proposed Dividend 2,183.50 2,550.06 (-) Corporate Dividend Tax on Proposed Dividend 444.51 519.14 (-) Transfer to Special Reserve 7,819.15 11,695.90 (-) Transfer to Debenture Redemption Reserve 4,629.11 4,629.11 (-)/+ Transfer to / from General Reserve (11,600.00) (5,050.00) Closing Balance 42.80 36.70 Total 1,75,198.47 1,72,541.11 102 NOTE-‘4’ LONG TERM BORROWINGS PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. Bonds I) Taxfree Bonds - Non Convertible Redeemable Debentures (Secured by paripassu charge on Loans and Advances (book debts) of the company.) (i) 7.68 % Tax free Bonds Redeemable at par on 21-01-2036 7,499.88 7,499.88 (Series XIV Tranche-I-IIIB- 2015-16) (ii) 7.43 % Tax free Bonds Redeemable at par on 21-01-2036 3,644.42 3,644.42 (Series XIV Tranche-I-IIIA- 2015-16) (iii) 8.80% Tax free Bonds Redeemable at par on 13-03-2034 14,416.42 14,416.42 (Series XIII Tranche-I-IIIB- 2013-14) (iv) 8.55% Tax free Bonds Redeemable at par on 13-03-2034 3,881.23 3,881.23 (Series XIII Tranche-I-IIIA- 2013-14) (v) 7.74 % Tax free Bonds Redeemable at par on 21-01-2031 48,351.53 48,351.53 (Series XIV Tranche-I-IIB- 2015-16) (vi) 7.49 % Tax free Bonds Redeemable at par on 21-01-2031 88,426.52 88,426.52 (Series XIV Tranche-I-IIA- 2015-16) (vii) 8.56% Tax free Bonds Redeemable at par on 27-03-2029 3,600.00 3,600.00 (Series XIII Tranche-I-IC- 2013-14) (viii) 8.80% Tax free Bonds Redeemable at par on 13-03-2029 23,455.08 23,455.08 (Series XIII Tranche-I-IIB- 2013-14) (ix) 8.55% Tax free Bonds Redeemable at par on 13-03-2029 12,307.69 12,307.69 (Series XIII Tranche-I-IIA- 2013-14) (x) 7.53 % Tax free Bonds Redeemable at par on 21-01-2026 12,788.59 12,788.59 (Series XIV Tranche-I-IB- 2015-16) (xi) 7.28 % Tax free Bonds Redeemable at par on 21-01-2026 10,889.06 10,889.06 (Series XIV Tranche-I-IA- 2015-16) (xii) 7.17% Tax free Bonds Redeemable at par on 01-10-2025 28,400.00 28,400.00 (Series XIV Private IC- 2015-16) (xiii) 8.41% Tax free Bonds Redeemable at par on 13-03-2024 10,529.14 10,529.14 (Series XIII Tranche-I-IB- 2013-14) (xiv) 8.16% Tax free Bonds Redeemable at par on 13-03-2024 7,575.90 7,575.90 (Series XIII Tranche-I-IA- 2013-14) 103 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) II) Taxable Bonds - Non Convertible Redeemable Debentures (Secured by negative lien on Loans and Advances (Book Debts) of the company .) (i) 8.49% Taxable Bonds Redeemable at par on 10-05-2028 20,000.00 20,000.00 (Series VB- 2013-14) (ii) 8.05% Taxable Green Bonds Redeemable at par on 29-03-2027 50,000.00 50,000.00 (Series VI B - 2016-17) (iii) 8.12% Taxable Green Bonds Redeemable at par on 24-03-2027 20,000.00 20,000.00 (Series VI A - 2016-17) (iv) 9.02% Taxable Bonds Redeemable at par on 24-09-2025 25,000.00 25,000.00 (Series III- 2010-11 - Tranche-II) (v) 8.44% Taxable Bonds Redeemable at par on 10-05-2023 30,000.00 30,000.00 (Series VA- 2013-14) (vi) 9.49% Taxable Bonds Redeemable at par on 04-06-2022 30,000.00 30,000.00 (Series IV- 2012-13 ) (vii) 8.87% Taxable Bonds Redeemable at par on 24-09-2020 15,000.00 15,000.00 (Series III- 2010-11 - Tranche-I) (viii) 8.85% Taxable Bonds Redeemable at par on 13-01-2020 15,000.00 15,000.00 (Series II- 2009-10) (ix) 9.60% Taxable Bonds Redeemable at par on 24-02-2019 10,000.00 10,000.00 (Series I- 2008-09) Less: Current Maturity 10,000.00 - - 10,000.00 III) Masala Bonds (Unsecured ) (i) 7.125% Green Masala Bond Redeemable at par on 10-10-2022 1,95,000.00 - (Series I- 2017-18) Total of Bonds 6,75,765.46 4,90,765.46 B. Term Loans - Secured a. From Banks (i) Bank of Baroda (INR Loan) Repayment on half yearly basis starting 4,493.11 6,016.63 from 15.01.2003 till 15.07.2021. Installments ranging between Rs. 1,91,47,506 to Rs. 9,61,26,342 . Less: Current Maturity 1,679.84 1,523.52 (Secured by US$ deposit with BOB London) 2,813.27 4,493.11 104 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (ii) Union Bank of India Term Loan-II Interest @ base rate (Floating), 714.10 3,571.30 Less: Current Maturity Repayment on quarterly basis starting 714.10 2,857.20 (Secured by pari-passu charge on the Loans from 09.09.14. Balance repayable in 8 - 714.10 and Advances (Book Debts)) Installments of Rs. 7,14,30,000 each and 1 installment of Rs 7,14,10,000 . (iii) Loan I from Asian Development Bank (ADB) Repayment on half yearly basis starting 6,682.12 8,205.52 Less: Current Maturity from 15.01.2003 till 15.07.2021 in 1,682.91 1,525.77 (Secured by pari-passu charge on the Loans installments ranging between US$ 4,999.21 6,679.75 and Advances (Book Debts) and Further 398,900 to US$ 2,428,269 . Guaranteed by the Government of India) (iv) KFW Loan-V Repayment on half yearly basis starting 4,524.98 3,886.68 Less: Current Maturity from 30.12.2018 till 30.12.2027 in 16 - - (Secured by pari-passu charge on the Loans installments of Euro 5,263,000 each 4,524.98 3,886.68 and Advances (Book Debts)) and 3 installments of Euro 5,264,000 each . b. From Others (i) Small Industrial Development Bank of India Interest @ 9.35% (Fixed upto 28.12.17), 4,400.00 7,200.00 Less: Current Maturity repayable on quarterly basis starting 2,800.00 2,800.00 (Secured by pari-passu charge on the Loans from 10.06.2016 in 14 installments of 1,600.00 4,400.00 and Advances (Book Debts)) Rs. 7,00,00,000 each and 1 installment of Rs. 2,00,00,000 . C. Term Loans - Unsecured a. From Banks (i) Nordic Investment Bank (NIB) Repayment on half yearly basis starting 6,064.01 10,096.34 Less: Current Maturity from 17.12.2012 till 17.06.2019 in 8 4,042.67 4,038.54 installments of US$ 3,571,428.58 each 2,021.34 6,057.81 and 6 installments of US$ 3,571,428.56 each . (ii) KFW Loan-I Repayment on half yearly basis starting 21,259.99 19,171.19 Less: Current Maturity from 30.12.2009 till 30.12.2039 in 28 965.73 833.01 (Guaranteed by the Government of India) installments of Euro 586,451.79 each, 20,294.26 18,338.18 32 installments of Euro 586,963.08 each and 1 installment of Euro 586,963 . (iii) KFW Loan-II Repayment on half yearly basis starting 12,320.61 14,316.68 Less: Current Maturity from 30.09.2012 till 30.09.2020 in 16 4,484.50 3,820.45 (Guaranteed by the Government of India) installments of Euro 2,858,000 each & 7,836.11 10,496.22 1 installment of Euro 4,272,000 . (iv) KFW Loan-III Repayment on half yearly basis starting 16,511.08 14,399.19 Less: Current Maturity from 30.06.2020 till 30.12.2049 in 9 - - (Guaranteed by the Government of India) installments of Euro 332,000 each & 16,511.08 14,399.19 51 installments of Euro 333,000 each . 105 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (v) KFW Loan-IV Repayment on half yearly basis starting 87,064.17 97,819.93 Less: Current Maturity from 30.06.2014 till 30.12.2022 in 16 17,412.52 16,303.08 (Guaranteed by the Government of India) installments of Euro 11,111,000 each 69,651.65 81,516.85 and 2 installments of Euro 11,112,000 each . (vi) Loan II from International Bank for Repayment on half yearly basis starting 8,378.87 11,398.83 Reconstruction and Development (IBRD) from 15.12.2005 till 15.06.2020 3,202.01 3,019.95 Less: Current Maturity in installments ranging from US$ 5,176.87 8,378.87 (Guaranteed by the Government of India) 1,309,700 to US$ 2,651,500 . (vii) Loan II from Asian Development Bank (ADB) Repayment on half yearly basis starting 91,881.30 72,771.58 Less: Current Maturity from 15.04.2020 till 15.10.2034 in 29 4,243.03 - (Guaranteed by the Government of India) equal installments of US$ 3,667,665.54 87,638.27 72,771.58 each and 30th installment of US$ 3,667,676.55 (viii) Loan III from International Bank for Repayment on half yearly basis starting 609.75 - Reconstruction and Development (IBRD) from 15.04.2022 till 15.10.2035 in - - Less: Current Maturity 27 installments of US$ 2,677,500.00 609.75 - (Guaranteed by the Government of India) each and 28th installment of US$ 2,707,500.00. (ix) Loan III from International Bank for Repayment on half yearly basis starting 162.60 - Reconstruction and Development (IBRD)-CTF from 15.04.2027 till 15.10.2056 in 20 - - Less: Current Maturity installments of US$ 230,000.00 each 162.60 - (Guaranteed by the Government of India) and 40 installments of US$ 460,000.00 each. b. From Others (i) Loan from NCEF- IREDA Repayable in 33 - 40 structured 9,409.97 10,168.43 Less: Current Maturity quaterly instalments . 795.16 505.81 8,614.81 9,662.62 (ii) Agence Francaise De Developpement (AFD) Repayment on half yearly basis starting 48,936.08 52,695.40 Less: Current Maturity from 31.07.2016 till 31.01.2031 in 3,764.31 3,763.96 (Guaranteed by the Government of India) 30 installments of Euro 2,333,333.33 45,171.77 48,931.44 each. (iii) Agence Francaise De Developpement (AFD)-II Repayment on half yearly basis starting 48,611.30 45,109.49 Less: Current Maturity from 30.11.2019 till 30.05.2029 in 20 - - installments of Euro 5,000,000 each . 48,611.30 45,109.49 (iv) Japan International Cooperation Agency Repayment on half yearly basis starting 1,87,712.23 1,88,265.49 (JICA) from 20.06.2021 to 20.06.2041 in 1 - - Less: Current Maturity installment of JPY 731,720,000 and 40 1,87,712.23 1,88,265.49 (Guaranteed by the Government of India) Installments of JPY 731,707,000 each . (v) Japan International Cooperation Agency Repayment on half yearly basis starting 82,031.64 79,733.91 (JICA)-II from 20.03.2024 to 20.03.2044 in 1 - - Less: Current Maturity installment of JPY 731,720,000 and 40 82,031.64 79,733.91 (Guaranteed by the Government of India) Installments of JPY 731,707,000 each . 106 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (vi) European Investment Bank (EIB) Tranche I - Repayment on half yearly 1,43,091.20 1,43,091.20 Less: Current Maturity basis starting from 26.09.2019 to - - (Guaranteed by the Government of India) 26.03.2035 in 32 installments of US$ 1,43,091.20 1,43,091.20 662,000 each . Tranche II - Repayment on half yearly basis starting from 15.07.2020 to 15.07.2036 in 32 installments of US$ 19,99,636.36 each and 1 installment of US$ 19,99,636.48 . Tranche III - Repayment on half yearly basis starting from 16.02.2021 to 15.08.2036 in 32 installments of US$ 4,005,375 each . (vii) Government of India Repayment on half yearly basis 25,416.00 26,200.05 Against International Development Agency starting from 15.10.2010 to 15.04.2035 782.03 782.09 (IDA) - Second Renewable Energy Project in 20 installments of US$ 625,000 each 24,633.97 25,417.96 (INR Loan) and 30 installments of US$ 1,250,000 Less: Current Maturity each payable in INR . Total 14,39,471.76 12,63,109.93 Foot Notes: All foreign currency borrowings from various multilateral / bilateral agencies (hedged) viz. ADB, IBRD, NIB, KfW, AFD,JICA and EIB have been converted into INR loan by way of plain vanilla swap transaction /currency, interest rate swap / principal only swap etc. entered into with various banks with whom IREDA has signed International Swaps and Derivative Association (ISDA) Master Agreement. These swap/derivative transactions have been entered into with the participating bank for a different maturity period for each transaction which is shorter from the maturity period of the loan. The hedging of the foreign currency loan has been carried out at various intervals and in multiple tranches of drawl against the lines of credit. Due to SWAP / hedging of foreign currency loans, in addition to the interest cost, these loans carry, hedging/derivative cost, commitment fee, government guarantee fee and other financial charges and due to multiplicity of the tranches of drawl against the line of credit , the applicable rate of interest on these lines of credit has not been disclosed above. 107 NOTE-‘5’ OTHER LONG TERM LIABILITIES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Trade Payable - - (b) IREDA-National Clean Energy Fund (NCEF) 24,923.68 23,100.49 (c) GOI Fully Service Bonds (Refer Note 24(22)) 1,64,000.00 1,64,000.00 (i) 7.85% GOI Bonds - Rs. 8,10,00,00,000 - Redeemable at Par on 06.03.2027 (ii) 7.60% GOI Bonds - Rs. 2,20,00,00,000 - Redeemable at Par on 23.02.2027 (iii) 7.22% GOI Bonds - Rs. 6,10,00,00,000 - Redeemable at Par on 06.02.2027 (d) Others 1,470.91 584.94 Total 1,90,394.60 1,87,685.43 NOTE-‘6’ LONG TERM PROVISIONS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Provision for Employees’ Benefits 1,276.63 1,141.79 (b) Others Provision for Standard Assets 5,526.85 4,486.41 Total 6,803.48 5,628.20 NOTE-‘7’ SHORT TERM BORROWING PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (i) Vijaya Bank - - (ii) Union Bank of India - - (iii) Bank of India - - Total - - 108 NOTE-‘8’ TRADE PAYABLE PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Trade Payable 13,868.41 13,776.82 Total 13,868.41 13,776.82 NOTE-‘9’ OTHER CURRENT LIABILITIES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Current Maturity of Long Term Debts 56,568.82 41,773.37 (b) Interest accrued but not due on borrowings 27,583.82 20,217.61 (c) Others Payable Provident Fund Payable 37.39 28.94 MNRE Programme Funds 944.85 944.85 MNRE Co Generation Specific Grant 30.83 28.90 National Hydrogen Energy Board 5.24 4.95 MNRE GBI Fund 12,097.54 61,493.82 Roof Top and other Small Scale Solar Project 3,961.73 6,223.56 MNRE Capital Subsidy For Channel Patners 6,081.09 5,892.11 MNRE UNDP Funds 695.41 708.33 MNRE SWHS 341.32 326.75 Interest on MIBOR Deposit payable to MNRE (Refer Note No. 24(22)) 1,206.99 864.97 Unclaimed Bond Interest 21.52 13.39 Other Liabilities 1,715.98 401.18 Total 1,11,292.54 1,38,922.72 109 NOTE-‘10’ SHORT TERM PROVISIONS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Provision for Employees’ Benefits 78.50 69.08 (b) Others Provision Income-tax (Net) - 93.44 Proposed Dividend 2,183.50 2,550.06 Corporate Dividend Tax 444.51 519.14 Provision for Standard Assets (Floating provision) 5,733.43 5,014.23 Provision for Corporate Social Responsibility Fund 2,053.77 1,381.30 Other Provisions 972.97 668.88 Total 11,466.69 10,295.14 110 NOTE-11 FIXED ASSETS ( Rs. / Lakhs ) Particulars GROSS BLOCK DEPRECIATION NET BLOCK Op. Bal. as at Additions Disposals Adjustments As at Op. Bal. as For the Disposals Adjustments As at As at As at 01.04.17 31.03.18 at 01.04.17 period 31.03.18 31.03.18 31.03.17 (i) Tangible Assets Buildings-Residential 41.43 - - - 41.43 32.68 1.44 - - 34.13 7.30 8.75 Leasehold Buildings-Office Leasehold-IHC 439.57 - - - 439.57 267.22 20.71 - - 287.93 151.64 172.34 Leasehold-AKB 4,227.58 - - - 4,227.58 2,117.47 227.87 - - 2,345.34 1,882.24 2,110.10 Office Space at Chennai 156.68 - - - 156.68 26.75 12.34 - - 39.09 117.59 129.93 Furniture and Fittings 327.91 5.53 - - 333.43 253.00 21.86 - - 274.86 58.57 74.91 Vehicles 74.39 - - - 74.39 35.14 12.31 - - 47.44 26.94 39.25 Office Equipments 322.52 4.33 - - 326.85 298.38 5.59 - - 303.97 22.89 24.14 Computers 538.38 28.51 -1.39 - 565.50 462.16 48.94 -1.32 - 509.78 55.72 76.22 Library 18.58 - - - 18.58 18.58 - - - 18.58 - - Sub Total (A1) 6,147.04 38.37 -1.39 - 6,184.02 3,511.38 351.06 -1.32 - 3,861.13 2,322.89 2,635.65 Solar Plant Building 2,096.36 123.01 - - 2,219.37 37.84 126.15 - - 163.98 2,055.39 2,058.53 Plant & Equipment 27,302.13 1,601.99 - - 28,904.12 267.58 1,642.89 - - 1,910.47 26,993.65 27,034.55 Sub Total (A2) 29,398.49 1,725.00 - - 31,123.49 305.42 1,769.04 - - 2,074.46 29,049.03 29,093.07 Total A (A1 +A2) 35,545.53 1,763.37 -1.39 - 37,307.51 3,816.80 2,120.10 -1.32 - 5,935.59 31,371.92 31,728.73 Previous year 6,055.91 29,542.29 -52.67 - 35,545.53 3,149.94 714.87 -48.00 - 3,816.80 31,728.73 2,905.97 (ii) Intangible Assets Internally Generated - - - - - - - - - - - - Purchased Software 155.70 16.26 - - 171.96 134.03 12.72 - - 146.75 25.21 21.68 Total B 155.70 16.26 - - 171.96 134.03 12.72 - - 146.75 25.21 21.68 Previous year 145.86 9.84 - - 155.70 116.94 17.09 - - 134.03 21.68 28.92 Total A+B 35,701.23 1,779.62 -1.39 - 37,479.47 3,950.83 2,132.82 -1.32 - 6,082.33 31,397.13 31,750.40 Previous year 6,201.77 29,552.13 -52.67 - 35,701.23 3,266.87 731.96 -48.00 - 3,950.83 31,750.40 2,934.90 (iii) Capital Work In Progress Data Centre - 303.19 - - 303.19 - - - - - 303.19 - Total C - 303.19 - - 303.19 - - - - - 303.19 - Previous year 0.08 20.37 - -20.45 - - - - - - - 0.08 (iv) Intangible Assets under development Software under 21.40 0.45 - -16.26 5.59 - - - - - 5.59 21.40 Development Total D 21.40 0.45 - -16.26 5.59 - - - - - 5.59 21.40 Previous year 5.59 25.65 - -9.84 21.40 - - - - - 21.40 5.59 (v) Capital Work in Progress 50 MW Solar Project - - - - - - - - - - - Total E - - - - - - - - - - - - Previous year 1,403.20 27,982.37 - -29,385.57 - - - - - - - 1,403.20 Total A+B+C+D+E 35,722.63 2,083.26 -1.39 -16.26 37,788.25 3,950.83 2,132.82 -1.32 - 6,082.33 31,705.91 31,771.80 Previous year 7,610.64 57,580.52 -52.67 -29,415.86 35,722.63 3,266.87 731.96 -48.00 - 3,950.83 31,771.80 4,343.76 111 NOTE-‘12’ NON CURRENT INVESTMENT PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (i) Trade Investment - - (ii) Other Investments Investment in Equity Instruments (unquoted)(at cost) 1,68,000 (Previous year 1,68,000) fully paid up Equity shares of Rs.10/- each, 12.00 12.00 including 48,000 equity shares allotted as bonus shares, in MP Wind Farms Ltd, a Joint Sector Company of IREDA (having 24% equity), M. P. Urja Vikas Nigam Ltd (having 25% equity), Consolidated Energy Consultants Limited (having 49.5% equity) and balance shares by Others . Less: Provision for diminution in the value of Investment - - 12.00 12.00 Total 12.00 12.00 NOTE-‘13’ LONG TERM LOANS & ADVANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Capital Advances - For purchase of Office & Residence premises (including parking) at NBCC Complex. 9,923.77 7,277.43 (b) Security Deposits 20.45 15.34 (c) Loans & Advances to Related Parties - Loans 3.07 - - Advances (Not bearing interest) - - (d) Term Loans - Onlending 12,64,302.17 10,48,901.19 - Refinancing (N.C.E.F.-I) 2,154.00 3,355.25 - Refinancing (N.C.E.F.-II) 10,872.70 10,568.11 Less: Allowance for bad and doubtful Loans 34,879.09 26,791.22 12,42,449.78 10,36,033.33 (e) Loans to Employees 273.33 305.79 (f) Staff Advances (Not bearing interest) 5.17 0.74 112 (g) Others 0.20 0.21 Total Loans & Advances of IREDA 12,52,675.78 10,43,632.85 Sub-classification of above : Secured (Considered good) - Term Loans 11,58,654.15 9,56,657.35 - Term Loans Refinancing (N.C.E.F.-I) - 442.25 - Term Loans Refinancing (N.C.E.F.-II) 9,046.55 9,220.37 - Loans to Employees including related parties 276.40 305.79 - Term Loans Secured by Bank Guarantee 298.20 379.40 Secured (Considered doubtful) - Term Loans (Substandard, Doubtful & Loss) 99,736.96 81,757.01 Unsecured (Considered good) - Term Loans 5,612.86 10,107.43 - Term Loans Refinancing (N.C.E.F.-I) 2,154.00 2,913.00 - Term Loans Refinancing (N.C.E.F.-II) 1,826.15 1,347.74 - Capital Advances 9,923.77 7,277.43 - Security Deposits 20.45 15.34 - Staff Advances (Not bearing interest) 5.17 0.74 - Others 0.20 0.21 12,87,554.86 10,70,424.07 Less: Allowance for bad and doubtful/Substandard Loans 34,879.09 26,791.22 GRAND TOTAL 12,52,675.78 10,43,632.85 - Due from Directors of the Company. 0.22 0.64 - Due from other officers of the Company i.e. Company Secretary as per the 8.45 10.30 Companies Act, 2013 113 NOTE-‘14’ OTHER NON CURRENT ASSETS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) OTHER BANK BALANCES (Refer Note No. 16) Foreign Currency Deposits - Dollar Deposit More than 12 months original maturity 4,962.39 6,642.23 (earmarked against bank loan from BOB) Interest Accrued but not due on Loans 169.75 157.18 Advance Tax & Other Tax Recoverable (Net) 13,879.46 13,908.24 Others - GOI Fully Service Bonds Money Receivable (Refer Note No. 24(22)) 1,63,879.20 1,38,075.91 - FDRs - Borrowers 1,470.91 584.94 - Miscellaneous Expenses not written off (Discount on Masala Bond) 750.97 - Total 1,85,112.68 1,59,368.51 NOTE-‘15’ TRADE RECEIVABLE PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (A) Outstanding for a period exceeding six months from the date they are due for payment (i) Secured, Considered good - - (ii) Unsecured, Considered good - - (iii) Doubtful - - Less: Allowance for bad and doubtful debts - - Sub Total - A - - (B) Others (i) Secured, Considered good - - (ii) Unsecured, Considered good 2,191.62 239.62 (iii) Doubtful - - Less: Allowance for bad and doubtful debts - - Sub Total - B 2,191.62 239.62 Total (A+B) 2,191.62 239.62 114 NOTE-‘16’ CASH AND BANK BALANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A) CASH AND CASH EQUIVALENTS (a) Balances with Banks A) In Current Account with Schedule Banks - IREDA i) In Indian Branches 60,559.43 46,168.42 ii) In Foreign Branches - In USD 20,162.40 38,904.51 - In Euro - 14,630.13 - In JPY - 17,461.88 B) In Deposit Account i) INR-Short term Deposit - IREDA 1,05,591.00 88,973.11 (Includes deposits of Rs. 77,500.00 Lakhs having original maturity of more than 90 days .) (b) Cheques Under Collection/DD In hand - 0.50 (c) In Overdraft Accounts 6.25 0.24 (d) Postage Imprest 0.50 0.25 Sub Total 1,86,319.57 2,06,139.02 B) OTHER BANK BALANCES (a) Balances with Banks A) In Current Account - IREDA 21.52 13.39 - MNRE 2.15 2.15 - MNRE GOI Fully Service Bond Bank a/c 350.00 350.00 B) In Saving Account - UNDP 0.05 0.05 - MNRE UNDP Account 695.41 708.33 - National Hydrogen Energy Board 0.06 0.06 - IREDA (MNRE GBI Fund) 2,759.54 48,291.32 - Rooftop & Other Small Solar Power Plant 3,961.73 6,223.56 - MNRE Capital Subsidy for Channel Partners 6,081.09 5,892.11 - IREDA National Clean Energy Fund 292.70 2,545.10 - Association of Renewable Energy Agencies of State-MNRE Share 0.01 0.01 C) In Deposit Account - IREDA 31.94 29.78 - MNRE 17.25 17.25 115 - MNRE Implementation of SWHS 341.32 326.75 - STD - National Hydrogen Energy Board 5.18 4.89 - STD - IREDA Co Generation 31.17 29.25 - IREDA National Clean Energy Fund 18,248.60 15,360.69 - MNRE GOI Fully Service Bond Bank a/c 977.79 26,439.06 - IREDA (MNRE GBI Fund) 10,000.00 - b) Foreign Currency Deposits - Dollar Deposit Less than 12 months original maturity 1,679.84 1,523.52 More than 12 months original maturity 4,962.39 6,642.23 50,459.76 1,14,399.49 Less: Amount disclosed under non-current assets (4,962.39) (6,642.23) (Refer Note No. 14) Sub Total 45,497.37 1,07,757.26 Total 2,31,816.94 3,13,896.28 NOTE-‘17’ SHORT TERM LOANS & ADVANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Total Loans & Advances A. (a) Security Deposits 0.92 307.72 (b) Loan & Advances to Related Parties - Loans 2.40 - - Advances (Not bearing interest) 1.05 - (c) Term Loans - Onlending 3,02,878.20 2,96,213.61 - Refinancing (N.C.E.F.-I) 759.00 820.00 - Refinancing (N.C.E.F.-II) 1,072.95 608.17 Less: Allowance for bad and doubtful Loans - - 3,04,710.14 2,97,641.78 (d) Loans to Employees 55.43 63.37 (e) Staff Advances (Not bearing interest) 31.93 42.57 (f) Others 2,651.15 78.43 Sub Total - A 3,07,453.02 2,98,133.87 B. Total Loans to constituents of MNRE (a) Loans to constituents of MNRE 254.77 254.77 (b) Interest Accrued and due on MNRE Loans 664.69 664.69 Sub Total - B 919.46 919.46 Total (A+B) 3,08,372.48 2,99,052.33 116 Sub-classification of above : IREDA Secured (Considered good) - Term Loans 2,70,819.96 1,18,394.66 - Term Loans Refinancing (N.C.E.F.-I) - 61.00 - Term Loans Refinancing (N.C.E.F.-II) 437.71 444.81 - Loans to Employees including related parties 57.83 63.37 - Term Loans Secured by Bank Guarantee 135.50 188.79 Unsecured (Considered good) - Term Loans 31,922.73 1,77,630.16 - Term Loans Refinancing (N.C.E.F.-I) 759.00 759.00 - Term Loans Refinancing (N.C.E.F.-II) 635.23 163.36 - Security Deposits 0.92 307.72 - Staff Advances (Not bearing interest) including related parties 32.98 42.57 - Others 2,651.15 78.43 3,07,453.02 2,98,133.87 MNRE Doubtful - Term Loans to Constituents of MNRE 919.46 919.46 GRAND TOTAL 3,08,372.48 2,99,052.33 - Due from Directors of the Company. 0.43 2.04 - Due from other officers of the Company i.e. Company Secretary as per the 3.45 3.17 Companies Act, 2013 Note-‘18’ OTHER CURRENT ASSETS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Interest accrued but not due on deposits with banks 1,306.94 162.89 (b) Interest Accrued and due on Loans - Interest Accrued and due 10,906.68 15,292.44 - Liquidated Damaged Accrued and due 123.04 159.41 (c) Interest Accrued but not due on Loans 748.00 1,123.56 (d) Advance Tax & Other Tax Recoverable (Net) 2,553.56 - (e) Others 204.20 245.50 Total 15,842.41 16,984.81 117 NOTE-‘19’ REVENUE FROM OPERATIONS PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. INTEREST (i) Interest on Lending Operations 1,55,333.36 1,34,207.97 Less : Rebate on Prompt Payment 495.47 543.80 1,54,837.88 1,33,664.18 (ii) Differential Interest 3,976.13 1,483.25 Less: Service Tax / G.S.T 599.67 193.47 3,376.46 1,289.78 (iii) Interest on Deposits with Banks -Short Term Deposit-INR 9,809.10 5,075.77 -Short Term Deposit-Foreign Currency 160.99 123.98 9,970.08 5,199.75 Total “INTEREST” (A= i+ii+iii) 1,68,184.43 1,40,153.71 B. OTHER FINANCIAL SERVICES (a) Business Service Fees Front end Fee 3,641.79 3,992.46 Less: Service Tax / G.S.T 499.59 505.60 3,142.20 3,486.86 Application Fee on Loans 1,126.21 991.37 Less: Service Tax / G.S.T 165.85 128.95 960.36 862.42 Application Fee - Accelerated Depreciation 1.42 0.12 Less: Service Tax / G.S.T 0.22 0.02 1.20 0.10 Application Fee - Generation Based Incentive 2,259.36 2,667.52 Less: Service Tax / G.S.T 301.26 345.02 1,958.10 2,322.50 Total Business Service Fees (a) 6,061.86 6,671.88 (b) Business Service Charges Service Charges - UNDP Programme Fund 7.45 10.43 Less: Service Tax / G.S.T 1.14 1.36 6.31 9.07 118 PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Service Charges - Generation Based Incentive 760.44 453.94 Less: Service Tax / G.S.T 114.19 59.19 646.26 394.75 Service Charges - Biogas Feed Fertilizer Plant - 0.34 Less: Service Tax / G.S.T - 0.04 - 0.30 Service Charges - Roof Top and Other Small Solar Power Project 263.55 331.71 Less: Service Tax / G.S.T 38.76 43.12 224.79 288.58 Service Charges - MNRE Capital Subsidy for CPs, SNAs and PA 1.60 114.10 Less: Service Tax / G.S.T 0.21 14.84 1.39 99.26 Total Business Service Charges (b) 878.75 791.95 (c) Amount received in respect of Bad Debts written off 610.02 80.24 (d) Gurantee Commission 205.99 - Less: Service Tax / G.S.T 31.42 - 174.56 - Total “OTHER FINANCIAL SERVICES” (B=a+b+c+d) 7,725.19 7,544.07 C. SOLAR OPERATIONS Revenue from Solar Plant Operations 2,003.37 229.02 Total (A+B+C) 1,77,912.99 1,47,926.80 119 NOTE-‘20’ OTHER INCOME PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Interest on Staff Loan 28.65 26.77 Interest on Income Tax Refund - 154.85 Provision Written Back 43.88 - Profit on Sale of Fixed Assets - 5.16 Rental Income 6.15 4.00 Miscellaneous income - Transferred from Capital Grant - 2.16 - Others 10.43 47.42 Total 89.11 240.36 NOTE-‘21’ EMPLOYEE BENEFIT EXPENSES PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Salaries, Wages and Other Amenities 3,699.51 2,332.64 (b) Contribution to Provident and Other Funds - Contribution to Provident Fund 166.19 129.95 - Provident Fund Administrative Charges 2.29 1.96 - Contribution to Benevolent Fund 0.84 0.76 - Contribution to Superannuation fund 126.03 97.08 - Contribution to Gratuity Fund 185.55 61.21 (c) Staff Welfare Expenses 240.30 167.62 (d) Human Resource Development 24.15 15.95 Total 4,444.87 2,807.18 120 NOTE-‘22’ FINANCE COST PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. Interest Expense Interest on Borrowings - on Bonds 46,686.81 34,526.18 - on Loans 44,765.73 40,204.50 Sub total (A) 91,452.54 74,730.68 B. Other Borrowing Costs (i) Commitment fee 357.04 278.66 (ii) Guarantee Fee 8,105.93 6,006.51 Sub total (B) 8,462.97 6,285.17 C. Others (i) Bond Trusteeship fee 2.60 0.50 (ii) Bank Charges 1.63 2.17 (iii) Bond Issue Expenses 264.70 294.54 (iv) IPO Issue Expenses 27.99 - (v) Front end fees 119.41 - (vi) Management Fee (KFW) 37.30 - (vii) Discount on Bonds 78.59 - (viii) Withholding Tax 346.59 - (ix) Others 15.33 15.41 Sub total (C) 894.16 312.61 Sub Total : (A+B+C) 1,00,809.67 81,328.47 Add : Amortisation of Foreign Currency Translations Loss on long term 2,189.61 - monetary items Less : Net Gain on Foreign Currency Transactions 476.79 Less : Net Gain on Foreign Currency Translations and Transactions - 8,721.69 Less : Interest Capitalised - 12.92 Total 1,02,522.49 72,593.85 121 NOTE-‘23’ OTHER EXPENSES PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Electricity and Water Charges 75.38 78.27 Office rent 10.41 11.91 Office Maintenance 52.88 54.99 Repairs and Maintenance-Others 128.20 123.16 Insurance 7.18 7.09 Rates and Taxes 161.97 126.37 Business Promotion 367.76 218.17 Travelling and Conveyance 272.32 169.51 Information and Dissemination 94.02 97.64 Payment to Auditor 46.06 17.80 Legal and Professional 379.73 232.56 Newspapers and Periodicals 1.81 1.18 Postage, Telegram and Telephone 33.64 28.92 Printing and Stationery 38.68 58.49 Recruitment Expenses 5.71 10.97 Credit Rating Expenses - Surveillance included 153.44 91.61 Filing Fees 0.46 0.36 Corporate Social Responsibility 1,033.03 750.74 Director Sitting Fees 6.00 - Loss on Sale of Assets 0.03 0.39 Sponsorship 2.00 1.00 Interest on Service Tax 3.44 15.46 Discount on Sale of Power (Solar Project) 44.65 - Miscellaneous Expenses 52.95 47.02 Total 2,971.74 2,143.62 122 NOTE ‘24’ NOTES ON ACCOUNTS 1. (a) The company is registered with the Reserve Bank of India (RBI) as a Non- Banking Financial Company (NBFC) vide order dated 10.02.1998. As per notification No. DNBS(PD).CC.No. 12/02.01/99-2000 dated 13.01.2000 of RBI , Government companies as defined under Section 2(45) of The Companies Act, 2013 have been exempted from applicability of the provisions of Reserve Bank of India Act, 1934 relating to maintenance of liquid assets and creating of Reserve funds and the Directions relating to acceptance of public deposits and prudential norms. The said notification is also applicable to IREDA, being Govt. Company conforming to Section 2(45) of The Companies Act, 2013. Further, as per para No. 1(3) (iv) of RBI’s Master Circular No. DNBS(PD) CC No. 333/03.02.001/2013- 14 dated July 1, 2013, IREDA being a Government Company as defined under section 2(45) of The Companies Act, 2013 continues to be exempted from the applicability of non-banking financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. Moreover in view of the non-applicability of the provisions of Section 45(I) C of the RBI Act, 1934 regarding creation of Reserve Fund, the Reserve Fund is not created. In terms of the exemption vide notification No. DNBS(PD).CC.No. 12/02.01/99-2000 dated 13.01.2000 as explained above, the Board of Directors of IREDA approved company’s prudential norms relating to income recognition , assets classification and provisioning including restructuring / reschedulement of borrower’s account which are being followed consistently. Some important features of these prudential norms are given in significant accounting policy No. 2 (v). These norms have been approved by the Board of Directors in terms of the Articles of Association of the Company. (b) MNRE has communicated approval for amendment in the article to cover the asset classification / provisioning for restructured / rescheduled accounts. After the approval by shareholders, the articles have been suitably amended. 2. a) In addition to the security held by way of assets etc , of the borrowing entities , the Company held FDRs & Guarantees issued by Banks amounting to Rs. 2,599.33 Lakhs and Rs. 16,678.68 Lakhs (Previous year Rs. 1,793.00 Lakhs and Rs. 15,110.28 Lakhs ) respectively as additional securities for loans granted. b) While making provision for Non Performing Assets, the value of security and provision for doubtful cases has been derived from the balance sheet of the borrower(s) by applying the depreciation as per rates prescribed under Schedule II of the Companies Act, 2013. However, if the balance sheet of the borrower(s) is older than 5 years from the financial year for which the shortfall is worked out, the same is ignored. c) The provision for Standard Assets as per the statutory requirement of 0.40% (Previous year 0.35%) amounting to Rs. 5,526.85 Lakhs (Previous year: Rs 4,486.41 Lakhs ) has been shown under Note No. 6 – Long Term Provisions, while Floating provision of Rs 5,733.43 Lakhs (Previous year: Rs. 5,014.23 Lakhs) has been shown under Note No. 10 – Short Term Provisions. 3. Details of Contingent Liabilities and Commitments As per Accounting Standard (AS) – 29 on Provisions, Contingent Liabilities and Contingent Assets, movement in Provisions as on 31st March , 2018 are disclosed as under:- 123 a) Details of Provisions ( Rupees in Lakhs) Sl. No. Nature of the liability for which Opening Additions made Payment / Closing balance provision is made balance at the during the year adjustment at the end of the beginning of the made during the year year year 1 Standard assets including Floating 9,500.64 1,759.65 - 11,260.28 (5,606.57) (3,894.07) (-) (9,500.64) 2 Income tax 67,370.39 10,519.00 - 77,889.39 (51,812.28) (15,558.11) (-) (67,370.39) 3 Proposed dividend 2,550.06 2,183.50 2,550.06 2,183.50 (-) (2,550.06) (-) (2,550.06) 4 Dividend tax 519.14 444.51 519.14 441.51 (-) (519.14) (-) (519.14) 5 Leave encashment 401.55 160.18 356.04 205.69 (318.05) (106.39) (22.90) (401.55) 6 Gratuity 165.68 185.55 12.26 338.97 (123.09) (61.21) (18.63) (165.68) 7 Post retirement medical benefit 404.11 132.47 19.25 517.33 (355.15) (51.63) (2.67) (404.11) 8 Sick leave 230.15 57.35 5.13 282.37 (212.32) (33.11) (15.28) (230.15) 9 Baggage Allowance 9.39 1.39 - 10.78 (7.82) (1.57) (-) (9.39) 10 Corporate Social Responsibility 1,381.30 1,033.03 360.55 2,053.77 (1,091.31) (750.74) (460.76) (1,381.30) Previous year figures shown within brackets . 124 b) Details of Contingent Liabilities & Capital Commitments (Rupees in Lakhs) Particulars As at 31.03.2018 As at 31.03.2017 Contingent Liabilities The contingent liability is in respect of cases for the Assessment Years 2010-11, 2011- 10,434.78 7,444.48 12, 2012-13, 2013-14, 2014-15 and 2015-16 which are pending with CIT(A) (Previous year – liability in respect of Assessment Years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15) . The cases from AY 1998-99 to 2009-10 have been referred back by ITAT vide order dated 21.11.14 for fresh assessments and are in progress with the Assessing Officer. Bank Guarantee issued in favour of BSE ltd. as a security for receiving subscription of - 1,416.00 Public issue of Tax Free Bonds by Indusind Bank and secured by way of Lien on Fixed Deposit Receipts (FDR) . Guarantee issued under IREDA’s “Guarantee Assistance to RE Suppliers / Manufacturers 1,000.00 - / EPC Contractors” Scheme for Bid Security . Guarantee- Unconditional and recoverable partial credit guarantee under IREDA’s 9,000.00 - Credit Enhancement Scheme. Total of Contingent Liabilities 20,434.78 8,860.48 COMMITMENTS Estimated value of contract to be executed on Capital Account for 50MW Solar Project - 1,500.00 Estimated value of capital contract in reference to the acquisition of new office space at 3,496.15 6,142.49 NBCC Plaza (inclusive of residential , commercial and parking space) . Letter of comfort issued and outstanding 58,099.92 67,969.21 4. SOLAR POWER PROJECT The company entered into an MOU with Solar Energy Corporation of India (SECI) in the year 2014‐15 for implementation of 50 MW Solar Project of IREDA situated at Kasargod, in the state of Kerala, has been capitalized in the books in the FY 2016-17 at Rs. 29,398.48 Lakhs . In turn, a tripartite agreement has been entered alongwith SECI with Jakson Engineer Limited (Jakson) for designing, engineering, supply, construction, erection, testing, commissioning of Solar PV Power Plant at a fixed price of Rs. 26,929.25 Lakhs plus 8% management charges (including Taxes) of Rs 2,456.32 Lakhs payable to SECI and Rs. 12.92 Lakhs being interest capitalized. Further, an amount of Rs. 1,500.00 Lakhs (excluding taxes) which was paid as advance towards evacuation charges to Solar Park Developer has been capitalized during the year. The Solar Project has been set up “The execution of lease agreement with respect to the land is still pending as at the year end. 125 As on 13 September 2017, the whole 50 MW solar plant has been synchronized with the grid and started generating power and feeding the same to grid. The PPA has been signed between IREDA and Kerala State Electricity Board Limited (KSEBL) on 31.03.2017 @ Rs. 4.95 which was subject to approval of Kerala State Electricity Regulatory Commission (KSERC). Accordingly IREDA, filed a petition for approval of the Power Purchase Agreement with KSERC, which in its interim order dated 14.02.18 has approved an interim tariff of Rs. 3.90 per unit. Accordingly, the generation income has been accounted for @ Rs. 3.90 per unit till final approval of tariff by KERC. The Plant is expected to be handed over by the developer by September 2018. The Operation and Maintenance of the plant has further been contracted by the developer , which shall accrue from the handing over of the project . Thus no operation expenses have been provided for in the current year with respect to the Solar Plant. 5. Conveyance deeds in respect of leasehold buildings - a residential flat costing Rs 41.43 Lakhs (Previous year: Rs. 41.43 Lakhs), office premises-IHC costing Rs. 439.57 Lakhs (Previous year: Rs. 439.57 Lakhs ) and office premises-AKB costing Rs 4,227.58 Lakhs (Previous year : Rs. 4,227.58 Lakhs ) are yet to be executed in favor of the Company. The cost includes proportionate value of land which has not been separately determined and accounted for. As such, depreciation has been charged on composite cost at the rates prescribed in Schedule II to The Companies Act, 2013. 6. The property tax demand raised upto 31 March 2018 in respect of all the residential and office premises have been paid. The property tax in respect of office building at India Habitat Centre has been paid as per the demand of India Habitat Centre , which was based on cost of the building. Municipal Corporation of Delhi has raised an issue with India Habitat Centre to include license fee received for the facilities area for the purpose of calculating ratable value. This matter is now pending with the Hon’ble Delhi High Court. In case the Hon’ble Delhi High Court decides against the company, the liability on account of municipal tax will have to be reworked which is not ascertainable at this stage. 7. The amount payable to enterprises falling under The Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous year : Rs. Nil). 8. In pursuance of the approval of the Cabinet Committee on Economic Affairs (CCEA) to issue fresh equity shares of Rs.10 each to the public on book building basis through the IPO, the authorized share capital of the Company was restructured by way of sub-dividing the nominal value of equity shares from Rs. 1000/- (Rupees One Thousand only) to Rs. 10 (Rupees Ten only) per equity share by the Shareholders of IREDA in the Extra-ordinary general meeting (EGM) held on November 28, 2017. 9. In terms of Section 135 of The Companies Act, 2013, IREDA is required to constitute a corporate social responsibility (CSR) Committee of the Board of Directors and the Company has to spend 2% of the average net profits of the Company’s three immediately preceding financial year calculated as per section 198 of The Companies Act 2013. Accordingly, CSR Committee of the Board of Directors consisting of 5 Directors, out of which one is an Independent Director with another being a Government Nominee Director, has been re-constituted by the Board through circular resolution dated 1st November 2017 and notified by the Board in its 297th meeting held on 11th November 2017. During the year, the Company has made a provision of Rs. 1,033.03 Lakhs (Previous year : Rs. 750.74 Lakhs) towards CSR. During the year, the following new projects, with a total outlay of Rs. 1,134.57 Lakhs (Previous year : Rs. 704.99 Lakhs) were approved to be financed by IREDA under CSR : 126 Sl. CSR Project or activity identified Outlay Implementing Agency Status - (Rs./Lakhs) 31.03.18 Promoting Healthcare, Sanitation and Drinking Water 1 Providing Dialysis unit with 2 Dialysis Machines and rest 23.28 Directly by IREDA Completed of the systems supporting the Dialysis unit at Nilanchal Education Trust in Sai Saburi Hospital, Bhubaneswar, Odisha. 2 250 LPH Water RO Vending Machine with Chiller at 7.90 Directly by IREDA Completed Baghmara, Jharkhand. 3 Donation to Health Minister’s Cancer Patient Fund. 10.00 Directly by IREDA Completed 4 250 LPH Water Vending Machine with chiller and 10.12 Directly by IREDA In Progress 400 Blankets to The Earth Saviours Foundation, NGO, Gurugram , Haryana . 5 Financial Support for knee surgery of 1 Child. 3.00 Directly by IREDA Sanction Letter Issued 6 Donation: Contribution to Swachh Bharat Kosh. 200.00 Directly by IREDA In Progress Promoting Healthcare, Sanitation , Drinking Water , Environment Sustainability, Ecological Balance and Conservation of Natural Resources 1 CSR Flagship Program IREDA-CARES (Clean Amenities 600.00 Directly by IREDA In Progress with Renewable Energy Systems) Model for providing Basic Amenities in Rural Areas. Environment Sustainability, Ecological Balance and Conservation of Natural Resources 1 200 Solar PV Street Lighting Systems in Rural areas of Pali 44.56 Rajasthan Electronics and Completed Constituency , Rajasthan. Instruments Limited 2 45 Solar PV Street Lighting Systems in Sainik School 10.02 Rajasthan Electronics and Completed Chittorgarh, Rajasthan. Instruments Limited 3 75 kWp Grid Connected Rooftop Solar PV System at 23.44 Bluearth Solar Pvt. Ltd. In Progress Ramakrishna Mission Ashrama, Asansol. 4 75 kWp Grid Connected Rooftop Solar PV System at 15.12 Directly by IREDA In Progress Garhwal Rifles War Memorial Boys and Girls Hostel, Dehradun. 5 Implementing Rooftop Solar PV System at SAATHI 4.17 Directly by IREDA In Progress Vridhashram (Old Age Home), New Delhi. 127 Sl. CSR Project or activity identified Outlay Implementing Agency Status - (Rs./Lakhs) 31.03.18 6 100 Solar PV Street Lighting Systems in Rural areas of 16.70 Uttar Pradesh Small In Progress Sitamarhi Parliamentary Constituency, Bihar . Industries Corporation 7 100 Solar PV Street Lighting Systems in Rural areas of 16.70 Uttar Pradesh Small In Progress Koderma Parliamentary Constituency, Jharkhand . Industries Corporation 8 200 Solar PV Street Lighting Systems in Rural areas of Sirsa 33.39 Uttar Pradesh Small In Progress Parliamentary Constituency, Haryana. Industries Corporation 9 100 Solar PV Street Lighting Systems in Rural areas of 16.70 Uttar Pradesh Small In Progress Bijnor Parliamentary Constituency, U.P. Industries Corporation 10 45 Solar PV Street Lighting Systems in 2 non grid connected 10.02 Central Electronics Limited In Progress villages in Almora , U.P. 11 150 Solar Street Lights in 5 identified villages of SoS 33.42 Rajasthan Electronics and In Progress Children’s Villages of India. Instruments Limited 12 Roof Top Solar PV System at Girls Sr. Sec. School cum 4.17 Directly By IREDA In Progress Hostel, Jhadol Block , Udaipur District , Rajasthan . Promoting Education 1 Providing 150 Bench Desk, Sports & Musical Items at 5 13.10 KM Foundation In Progress Schools & Colleges in Giridih Parliamentary Constituency, Jharkhand. 2 Providing Financial Support to Community Education 10.20 Directly by IREDA In Progress Development Foundation, Ekta Vihar , New Delhi . 3 Providing 50 Yoga Mats, 1 LED TV 50”, 1 AC for setting 2.15 Directly by IREDA Completed up Yoga Room at Indraparastha Girls Sr. Sec. School, New Delhi. Rural Development 1 2 High Mast Lights in Giridih Parliamentary Constituency, 7.85 KM Foundation In Progress Jharkhand . 2 Construction of 2 football grounds in Madikkai Grama 20.20 Renewable Power Sanction Panchayatha, Kasargod, Kerala. Corporation Kerala Ltd Letter Issued Total Outlay : 1,134.57 During the year, an amount of Rs. 360.55 Lakhs (Previous Year: Rs. 460.76 Lakhs) has been paid to the implementing agencies against the CSR projects based on the progress of the projects. 128 10. As per the Board approved Foreign Exchange and Derivative Risk Management Policy of IREDA, an open exposure on foreign currency loans (40% of outstanding forex borrowing) is permissible. The open exposure as at 31.03.18 is Rs. 2,72,389.51 Lakhs (Previous year : Rs. 2,07,218.68 Lakhs ) which is 34.42% (Previous year : 26.32 % ) of outstanding forex borrowing and is within the permissible limits . Out of the said open exposure part hedging has been done for Rs. 46,196.78 Lakhs equivalent Euro 55,382,785 (Previous year: Rs. 40,022.24 Lakhs equivalent to Euro 55,382,785 ) by taking principal only swap (USD/INR) for EURO currency loan, Rs. Nil (Previous year: Rs. 74,347.15 Lakhs) by taking principal only swap (JPY/USD) for JPY currency loan. 11. EARNING PER SHARE In terms of Accounting Standard (AS) 20 on Earnings Per Share, the Earnings Per Share (Basic & Diluted) is worked out as under:- Particulars As at 31.03.2018 As at 31.03.20171 Nominal value of Equity share (Rs. per share) 10 10 Numerator Profit after Tax as per Statement of Profit & Loss (Rs. in Lakhs) 39,319.92 36,501.52 Denominator ➢ Number of equity shares 78,46,00,000 78,46,00,000 ➢ Weighted average number of Equity shares for calculating Basic and 78,46,00,000* 78,46,00,000** Diluted Earnings per share ➢ Basic & Diluted Earnings per share (Annualised) (in Rs.) 5.01 4.65 1 Due to subdivision of shares (from F.V of Rs. 1000/- per share to Rs. 10/- per share), the previous year figures were not comparable. However the same has been re-stated at Rs. 10/- per share for making them comparable (Refer Note No. (24(8)). * weighted average (78,46,00,000 x 365/365 ) = 78,46,00,000 ** weighted average (78,46,00,000 x 365/365 ) = 78,46,00,000 12. EMPLOYEE BENEFITS The summarized position of Post-employment benefits and long term employee benefits recognized in the Statement of Profit & Loss and Balance Sheet as required in accordance with Accounting Standard – 15 (Revised) are as under:- 129 (a) Change in the present value of the obligation (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Present value of obligation as at the 615.71 401.55 230.15 9.39 404.11 beginning (560.47) (318.05) (212.32) (7.82) (355.15) Interest cost 46.18 30.12 17.26 2.11 30.31 (44.84) (25.44) (16.99) (0.63) (28.41) Current service cost 45.96 30.97 19.01 2.21 26.86 (39.94) (48.60) (15.74) (0.62) (17.91) Past Service Cost - - - - - - - - - - Benefits paid (-)34.70 (-)356.04 (-)5.13 - (-)19.25 (-)(36.54) (-)(22.90) (-)(15.28) - (-)(2.67) Actuarial loss/(gain) on obligations 129.25 97.88 20.92 (-)2.93 75.30 (7.00) (32.35) (0.38) (0.32) (5.31) Acquisition Adjustment - 1.21 0.16 - - - - - - - Present value of obligation at the end 802.39 205.69 282.37 10.78 517.33 (615.71) (401.55) (230.15) (9.39) (404.11) Previous year figures are shown within brackets. 130 (b) Change in fair value of plan asset (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post (Funded) Encashment (Un funded) Allowance Retirement (Un funded) (Un funded) Medical Benefit (Un funded) Fair value of plan assets at the 450.03 - - - - beginning (437.38) - - - - Expected return on plan assets 37.13 - - - - (34.99) - - - - Employer’s contribution 13.81 - - - - (14.02) - - - - Fund Management Charges - - - - - - - - - - Benefits paid (-)34.70 - - - - (-)(36.54) - - - - Actuarial loss/(gain) on obligations (-)2.85 - - - - (0.18) - - - - Fair value of plan asset at the end 463.43 - - - - (450.03) - - - - Previous year figures are shown within brackets . (c) Amount recognized in Balance Sheet (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Estimated present value of 802.39 205.69 282.37 10.78 517.33 obligations as at the end (615.71) (401.55) (230.15) (9.39) (404.11) Fair value of plan assets as at the end 463.43 - - - - (450.03) - - - - Net liability recognized in balance (-)338.97 (-)205.69 (-)282.37 (-)10.78 (-)517.33 sheet (-)(165.68) (-)(401.55) (-)(230.15) (-)(9.39) (-)(404.11) Previous year figures are shown within brackets . 131 (d) Expense recognized in the Statement of Profit & Loss. (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Current service cost 45.96 30.97 19.01 2.21 26.86 (39.94) (48.60) (15.74) (0.62) (17.91) Past service cost - - - - - - - - - - Interest cost 46.18 30.12 17.26 2.11 30.31 (44.84) (25.44) (16.99) (0.63) (28.41) Expected return on plan asset (-)37.13 - - - - (-)(34.99) - - - - Net actuarial (Gain)/Loss recognized 132.09 97.88 20.92 (-)2.93 75.30 (6.82) (32.35) (0.38) (0.32) (5.31) Total expenses recognized in 187.10 158.97 57.19 1.39 132.47 Statement of Profit & Loss (56.61) (106.39) (33.11) (1.57) (51.63) Previous year figures are shown within brackets. (e) Principal actuarial assumption as expressed as weighted average (Rate per annum) Particulars Gratuity Leave Sick Leave Baggage Post-Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Discount rate 7.60% 7.60% 7.60% 7.60% 7.60% (7.16%) (7.16%) (7.16%) (7.16%) (7.16%) Expected rate of return 7.51% - - - - on plan assets (8.00%) - - - - Expected rate of salary 6.50% 6.50% 6.50% 6.50% 6.50% increase (6.50%) (6.50%) (6.50%) (6.50%) (6.50%) Method used Projected Unit Projected Unit Projected Unit Projected Unit Projected Unit Credit (PUC) Credit (PUC) Credit (PUC) Credit (PUC) Credit (PUC) 132 (f) Defined Contribution Plan During the year , the company has recognized an expense of Rs. 166.19 Lakhs (Previous year : Rs 129.95 Lakhs ) in respect of contribution to Provident Fund, Rs. 0.84 Lakhs (Previous year: Rs. 0.76 Lakhs) in respect of contribution to Benevolent Fund and Rs. 126.03 Lakhs (Previous year: Rs. 97.08 Lakhs) in respect of contribution to Superannuation Fund. The estimates of future salary increase, considered in the actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in employee market. 13. RELATED PARTY DISCLOSURE (i) Details of transactions entered into with the related parties during the year as required by Accounting Standard (AS) – 18 on “Related Party Disclosures” are as under:- (Rupees in Lakhs) Particulars Key Management Personnel (KMP) Managerial remuneration 159.59 (163.73) Previous year figures are shown within brackets. (ii) Disclosure of Related Parties with whom Business transactions took place during the year :- Name Designation Period Shri K. S. Popli Chairman & Managing Director 01.04.2017 to 31.03.2018 Shri S. K. Bhargava Director- Finance 01.04.2017 to 31.03.2018 Shri Chintan Navinbhai Shah Director- Technical 05.03.2018 to 31.03.2018 Shri Surender Suyal Company Secretary 01.04.2017 to 31.03.2018 M/s M.P. Windfarms Limited A joint venture company in collaboration with M.P. No dividend received from the Urja Vikas Nigam Limited (25%), Consolidated Energy company during the current Consultants Limited (49.5%), IREDA (24%) and Others period as well as in the previous (1.5%) . year. 133 14. REMUNERATION OF DIRECTORS a) Remuneration paid to the Chairman and Managing Director, Director (Finance) and Director (Technical) and Company Secretary are as under:- (Rupees in Lakhs) Particulars Chairman & Director (Finance) Director Company Secretary Managing Director (Technical)* Salary & allowances 45.42 46.66 1.98 30.02 (40.16) (33.74) (24.27) (21.01) Medical allowance 1.31 1.13 - 1.56 (0.92) (0.84) (0.74) (0.68) Provident Fund 2.70 2.40 0.17 2.04 (2.71) (2.45) (2.14) (1.87) Superannuation Contribution 2.03 1.80 0.13 1.53 (1.92) (1.72) (1.61) (1.29) Value of perquisites as per 9.56 6.55 0.26 2.33 Income Tax Act, 1961 (8.99) (7.57) (5.35) (3.75) Total 61.02 58.54 2.54 37.49 (54.70) (46.33) (34.11) (28.60) Previous year figures are shown within brackets. * The Director Technical , Mr. Chintan Navinbhai Shah was appointed on 05.03.18 . Previous Year figures relate to Mr. B.V.Rao , who superannuated on 28.02.17 . b) The Chairman and Managing Director, Director (Finance) and Director (Technical) have also been allowed staff car including private journey upto a ceiling of 1000 Kms. per month on payment of monthly charges as per Department of Public Enterprises guidelines. c) Contribution towards Gratuity Fund for Directors is not ascertainable separately as the contribution to LIC is not made employee wise. d) Sitting Fees paid to Independent Directors Rs 6.00 Lakhs (Previous year: Rs. Nil ). 134 15. REMUNERATION TO AUDITOR (Rupees in Lakhs) Particulars Amount Annual Audit Fees 4.65 (5.00)1 Audit Fees for Interim Accounts 9.30 (4.00) Limited Review Audit 4.402 (1.00) Tax Audit 1.86 (2.00)3 Certification Fee for Consolidation of the accounts 0.654 (1.30) Certification & Other Service 1.20 (1.50) Fee as Auditor to Tax Free /Masala Bonds / IFCS Audit 24.005 (16.50) Total 46.06 (31.30) Previous year figures are shown within brackets . 1 Including Rs. 1.00 Lakhs relating to FY 2015-16 . 2 Including Rs. 0.35 Lakhs relating to FY 2016-17 . 3 Including Rs. 0.40 Lakhs relating to FY 2015-16 . 4 Including Rs. 0.65 Lakhs relating to FY 2016-17 . 5 Including Rs. 2.00 Lakhs relating to FY 2016-17 . 16. DEFERRED TAXES a) In compliance with the Accounting Standard relating to “Accounting for Taxes on Income” (AS-22), the company has taken credit in the Statement of Profit & Loss towards deferred tax asset (net) on account of timing differences. After giving due consideration, deferred tax assets/liabilities are measured using the applicable current rates of Income Tax. b) Since the Company has resolved that it will not make any withdrawal from the Special Reserve created and being maintained under section 36(1)(viii) of the Income Tax Act, 1961, hence the special reserve created and maintained is not capable of being reversed. Thus it becomes a permanent difference as per AS 22. Accordingly, the company has not recognized any deferred tax liability on this account. 135 c) The details of deferred tax assets / Liabilities (net) as on 31st March , 2018 is given below:- (Rupees in Lakhs) A Deferred Tax Assets (+) Arising on account of timing differences:- As at 31.03.18 As at 31.03.17 ➢ Provision for Leave Salary, Gratuity, Sick Leave, Baggage Allowance, 802.46 476.62 Post Retirement Medical Benefit, Performance Incentive, Pay Revision and Withholding Tax . ➢ Provision for Bad & Doubtful Debts & Standard Assets (Floating 9,850.55 7,778.25 provision ) Total – A 10,653.01 8,254.87 B Deferred Tax Liabilities (-) ➢ Depreciation 5,180.05 2,792.73 ➢ Foreign Currency Monetary Item Translation Difference Account 6,246.83 - Total – B 11,426.88 2,792.73 C Deferred Tax Asset (+)/Liability (-) (A-B) -773.87 5,462.15 Deferred Tax Asset (+)/ Liability(-) (Net) -773.87 5,462.15 17. DISCLOSURE OF PRIOR-PERIOD ITEMS (Rupees in Lakhs) Particulars 2017-18 2016-17 Debits Credits Debits Credits Legal and Professional 4.07 - 5.37 - Miscellaneous Expenses - - 11.73 - Travelling and Conveyance 9.26 - - - Information and Dissemination - - 1.50 - Rent - 2.00 - - Interest on Lending Operations 106.20 110.19 173.28 373.68 Postage Telegram and Telephone 0.38 - - - Total 119.90 112.19 191.88 373.68 136 18. Disclosure Under Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’ During the year , the company has opted towards an irrevocable option for amortising the foreign exchange fluctuation loss/(gain) on the long term foreign currency monetary items over the balance period of such items in accordance with Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’ . Accordingly, an amount of Rs. 2,189.61 Lakhs has been recognized in the statement of Profit and Loss during the year. The remaining amount to be amortised in ‘Foreign Currency Monetary Item Translation Difference Account’ is Rs. 21,391.95 Lakhs. 19. ADDITIONAL INFORMATION a) Expenditure in Foreign Currency: • On Travelling Rs. 14.07 Lakhs (Previous year: Rs. 14.80 Lakhs ) • Bond issue expenses Rs. 351.04 Lakhs (Previous year: Nil ) • Interest & Commitment expenses: Rs. 11,985.58 Lakhs (Previous year : Rs. 8,001.85 Lakhs) . In addition, hedging cost of Rs. 32,271.37 Lakhs (Previous year : Rs. 31,099.74 Lakhs) has been paid in Indian Currency. b) Earnings in Foreign Exchange: • Interest in Rs. 160.99 Lakhs (Previous year : Rs. 137.33 Lakhs) c) M/s KfW paid Rs.54.41 Lakhs (Previous year: Rs. 207.69 Lakhs) directly to consultants (abroad) hired under TA programme under Direct Disbursement Procedures against Technical Assistance Programme (TAP) of EURO 1.5 Million sanctioned to IREDA in respect of KFW II & KFW IV lines of credit for expert services /assignments, capacity building and training programme etc. Further travel expense of Rs. Nil (Previous year: Rs 8.14 Lakhs ) was reimbursed to IREDA by KfW under the TA programme. d) M/s KfW paid Rs. 51.95 Lakhs (Previous year: Rs. NIL) directly to consultant hired under TA programme under Direct Disbursement Procedures against TAP of EURO 1 Million sanctioned to IREDA in respect of KFW VI line of credit for expert services for capacity building measures and costs for related goods and services for IREDA. 20. MNRE PROGRAMME FUNDS The Company besides its own activities implements Programmes on behalf of Ministry for New and Renewable Energy on the basis of Memorandum of Understanding entered into with the said Ministry. In terms of stipulations of each of the MoUs, MNRE has placed an agreed sum in respect of each Programme with the company for programme implementation. Interest on MNRE loans are accounted on due basis. As the income generated by the MNRE programme loans is not the income of the company and also the loan assets belong to MNRE, the same is not considered for asset classification and provisioning purposes. On closure of the respective Programmes, the company is required to transfer the amount standing to the credit of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the service charges, irrecoverable defaults and other dues as stipulated in the MoU. The amount due to MNRE on account of the above at the close of the period, along with interest on unutilized funds kept in separate bank account with Nationalized Banks as short-term deposits, is shown under the head Current Liabilities in the Balance Sheet. 21. Generation Based Incentives (GBI) and Capital Subsidy Scheme, MNRE IREDA is a Fund Administrator on behalf of MNRE for distribution of Generation Based Incentive and Capital Subsidy for Wind and Solar Sectors. Under these schemes, specific fund amount is provided by MNRE to IREDA for the purpose of disbursement 137 of the same to the GBI claimants as per the scheme of MNRE. Therefore, essentially, the activity is receipt and utilization of funds. For any further release of GBI funds, IREDA is required to submit the Utilization Certificate along with audited statement of expenditure duly certified by a Chartered Accountants. The said requirement is fully complied with by IREDA and nothing further has been required by MNRE so far. The statutory auditors have not audited the accounts of Scheme. 22. MNRE FULLY SERVICE BONDS In terms of O.M. No. F.15(4)-B(CDN)/2015 dated 03.10.16 issued by Department of Economic Affairs , Ministry of Finance, Government of India , IREDA had been asked to raise an amount of Rs. 4,00,000.00 Lakhs through GOI fully serviced bonds for utilization of the proceeds by them for MNRE Schemes / Programs relating to Grid Interactive Renewable Power, off-Grid/Distributed & Decentralized Renewable Power and Investment in Corporations & Autonomous Bodies. An MoU between MNRE and IREDA has also been signed on 25.01.17 defining the role and responsibilities of both. Para No (c) of General Clauses at page 5 of the MoU specifically defines that the borrowings of MNRE bonds shall not be considered as assets/liability for any financial calculation by the Company . This implies that the amount raised by way of MNRE bonds while shall be reflected in the borrowing as well as assets however, there will be no impact of the same on IREDAs borrowings/ Assets or Income / Expenses. IREDA had raised Rs. 1,64,000.00 Lakhs GOI Fully Service Bonds on behalf of MNRE during the year 2016-17 and the same has been shown under Note No. 5 - Other long-term liabilities. Against this an amount of Rs. 1,63,879.20 Lakhs (Previous Year: 1,38,075.91 Lakhs) has been disbursed up to 31st March, 2018 as per the instructions of the MNRE for various plans/schemes. The said amount has been shown under Note No. 14 - Other Non-Current Assets - as amount recoverable from MNRE. The amount was kept in MIBOR Linked deposit on which the accrued interest of Rs. 1,206.99 Lakhs (Previous Year: 864.97 Lakhs) has been shown under Note No. 9 - Other Current liabilities . The balance cumulative amount (inclusive of interest accrued / earned ) of Rs. 977.79 Lakhs (Previous Year: 26,439.06 Lakhs) is kept in MIBOR Linked Term Deposit and Rs. 350.00 Lakhs (Previous Year: 350.00 Lakhs) in Current Account with Indusind Bank , which are shown under Note No. 16- Cash & Bank Balances in respective sub heads . All other MNRE funds, except the MNRE Fully Service Bonds, have been shown under the current assets- Cash and Bank Balances under Current / Saving Bank /Short Term Deposit account and corresponding liability shown under Other Current liabilities. 23. SUBSIDY (a) Interest Subsidy As per the Government policy, MNRE is providing interest subsidy. The interest subsidy is released to borrowers implementing MNRE programmes of Co-generation, Small Hydro, Briquetting, Biomass, Solar Thermal and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is passed on to the borrowers on quarterly basis subject to complying with the terms and conditions of the sanction by these borrowers. The programme-wise details of interest subsidy received, passed, refunded during the year and the balance as on 31.03.2018 are as under:- (i) Interest subsidy on NPV basis:- 138 (Rupees in Lakhs) Sl. Name of the sector Opening Balance Interest Subsidy Amount Interest Subsidy Closing Balance No. as at the beginning received during refunded passed on as at the closing of the year the year during the year during the year of the year 1 Bio-mass Co- 215.01 0 0 0 215.01 generation (215.01) (0) (0) (0) (215.01) 2 Small Hydro 1.83 0 0 0 1.83 (1.83) (0) (0) (0) (1.83) Sub Total….A 216.84 0 0 0 216.84 (216.84) (0) (0) (0) (216.84) Previous year figures are shown within brackets. (ii) Interest subsidy on actual basis:- (Rupees in Lakhs) Sl. Name of the sector Opening Interest Subsidy Amount Interest Interest Closing No. Balance as at received during refunded received Subsidy passed Balance as at the beginning the year during on FDR on during the the closing of of the year the year year the year 1 Solar Thermal Sector 0.04 0 0 0 0 0.04 (0.04) (0) (0) (0) (0) (0.04) 2 SPV WP 2000-01 (-)51.35 0 0 0 0 (-)51.35 (-)(51.35) (0) (0) (0) (0) (-)(51.35) 3 SPV WP 2001-02 (-)136.03 0 0 0 0 (-)136.03 (-)(136.03 ) (0) (0) (0) (0) (-)(136.03 ) 4 SPV WP 1999-00 (-)6.85 0 0 0 0 (-)6.85 (-)(6.85) (0) (0) (0) (0) (-)(6.85) 5 SPV WP (-)2.97 0 0 0 0 (-)2.97 Manufacturing (-)(2.97) (0) (0) (0) (0) (-)(2.97) 6 SPV WP 2002-03 (-)41.39 0 0 0 0 (-)41.39 (-)(41.39) (0) (0) (0) (0) (-)(41.39) 7 Accelerated SWH 0.10 0 0 0 0 0.10 System (0.10) (0) (0) (0) (0) (0.10) Sub Total…..B (-)238.45 0 0 0 0 (-)238.45 (-)(238.45) (0) (0) (0) (0) (-)(238.45) Grand Total (A + B) (-) 21.61 0 0 0 0 (-) 21.61 (-)(21.61) (0) (0) (0) (0) (-)(21.61) Previous year figures are shown within brackets . 139 (b) Capital subsidy During the period an amount of Rs. 45.50 Lakhs (Previous year: Rs. 1,067.09 Lakhs ) was received from MNRE towards Capital Subsidy. Out of the total capital subsidy amount available, Rs. 45.50 Lakhs (Previous year: Rs. 1,067.09 Lakhs ) was passed on to the borrowers on compliance of the terms and conditions of the capital subsidy scheme. 24. NCEF FUNDS In respect of NCEF assets, an amount of Rs. 42.74 Lakhs (Previous year: Rs. 64.44 Lakhs) representing 2% interest as per the Scheme , has been recognized and against the same Floating provision of Rs. 7.48 Lakhs (Previous year: Rs. 40.40 Lakhs) has been created in respect of income which has not been realized . 25. Debenture Redemption Reserve In terms of Rule 18 (7) (b) (ii) of The Companies Act 2013, the company is required to create a Debenture Redemption Reserve (DRR) upto 25% of the bonds issued through public issue. The Company has made a provision for DRR, so as to achieve the required amount over the respective tenure of the Tax Free Bonds . Accordingly a sum of Rs. 4,629.11 Lakhs (Previous Year: Rs. 4,629.11 Lakhs ) has been provided . 26. IMPAIRMENT OF ASSETS The Company, at each balance sheet date, assesses whether there is any indication of impairment of any asset and/or cash generating unit. If such indication exists, assets are impaired by comparing carrying amount of each asset and/or cash generating unit to the recoverable amount being higher of the net selling price or value in use. Value in use is determined from the present value of the estimated future cash flows from the continuing use of the assets. The Company’s solar project at Kasargod, Kerala is in the process of handing over and achieving its full generation during the year 31.03.2019. Further , the fixed tariff is also likely to be finalized during the year . Accordingly , in the opinion of the Management, no impairment is required to be provided for during the year. 27. SEGMENT ACCOUNTING The Company operates in 2 segments - Financing activities in the Renewable Energy (RE) & Energy Efficiency (EE) sector and Generation of power through Solar Plant operations at Kasargod , Kerala. Major revenue for the company comes from the segment of financing activities in the RE & EE sector. The other operating segment -Generation of power through Solar Plant is not a reportable segment in terms of the Accounting Standard (AS) -17 on “Segment Reporting”. The company operates in India, hence it is considered to operate only in domestic segment. As such considered as a single business/geographical segment for the purpose of Accounting Standard (AS) -17 on “Segment Reporting”. 28. The Company has paid an Interim Dividend of Rs. 10,500.00 Lakhs on 19.02.18 as approved in the 302nd meeting of the Board of Directors held on 07.02.18 . 29. Raising of Funds through IREDA GREEN MASALA BONDS : During the year, the Company has raised a sum of Rs. 1,95,000.00 Lakhs through “Ireda Green Masala Bonds“ in the international debt market at a coupon rate 7.125% for a tenure of 5 years (repayable at par on 10.10.2022) where yield for 140 these bonds is 7.23%, thereby resulting into a discount of 0.4280 % of the total sum issued amounting to Rs. 834.60 Lakhs. The said amount of discount is being amortised over the tenor of the Bond, i.e. 5 years after utilisation of security premium. The charge during the period ended 31.03.18 to the Profit and Loss account is Rs. 78.59 Lakhs. The Unamortised amount carried forward is Rs. 750.97 Lakhs. Further the Company has to bear the charge of withholding tax, which is presently 5%, on the interest so paid annually. 30. Effect of Change in Accounting Policy The Company has been recording the transactions in foreign currency (except the foreign currency loans where derivative transactions have been made with banks), at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities were re-stated at the exchange rate prevailing at the year end. The difference between the year-end rate and the exchange rate at the date of transaction was recognized as income or expense in the Statement of Profit and Loss. During the year, the company has changed its Significant Accounting Policy No. 3 relating to the Foreign Currency Transactions w.e.f. 01.04.2017, so as to make it in accordance with the option available in Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’, whereby the foreign exchange fluctuation loss/(gain) on the long term foreign currency monetary items , at each reporting period , is amortised over the balance period of such items. Accordingly, the amortisation of foreign exchange fluctuation loss of Rs. 2,189.61 Lakhs is included under the head ‘Foreign Currency Exchange Fluctuation Loss’ in the Statement of Profit and Loss and the Unamortised Foreign Currency Monetary Items Translation Difference taken to Reserve & Surplus. Due to this change in accounting policy, the profit for the year ended 31.03.2018 is higher by Rs. 21,391.95 Lakhs (before Taxes ) and Rs. 15,145.13 Lakhs (after taxes). 31. In the opinion of the management, the value of Current Asset, Loans & Advances on realization in the ordinary course of the business, will not be less than the value at which these are stated in the Balance Sheet. 32. Wind World India Ltd. has been referred to NCLT and Insolvency Resolution Professional has been appointed by NCLT. The said company stands as Corporate Guarantor to the loan amounting to Rs. 17,924.03 Lakhs to entities which are its subsidiaries. One of the said subsidiaries M/s Wind World India Infrastructure Ltd. (WWIIL) having an outstanding of Rs. 11,630.15 Lakhs has turned to a Non Performing Asset. 33. The figures are rounded off to the nearest Rupees in Lakhs. Previous year’s figures have been re-arranged/re-grouped wherever considered necessary to make them comparable with the current year’s figures. 34. THE DISCLOSURES UNDER RBI GUIDELINES ARE AS UNDER (IREDA ONLY) a. Capital to Risk Assets Ratio (CRAR) 18.05% (19.17%) b. Exposure to Real Estate Sector (Direct and Indirect) 0 (0) 141 c. Maturity Pattern of Assets & Liabilities : (Rupees in Lakhs) Items Less than or equal to 1 More than a year upto 3 More than 3 years upto 5 year years years Loan Assets including accrued 3,16,483.93 2,23,761.25 2,15,152.80 interest (A) (3,14,212.11) (2,23,740.47) (2,52,425.84) Foreign currency assets (B) 21,842.24 3,893.96 1,068.43 (72,520.03) (3,531.84) (3,110.39) Total Assets (A+B) 3,38,326.17 2,27,655.21 2,16,221.23 (3,86,732.14) (2,27,272.32) (2,55,536.23) Rupee liabilities (C) 96,047.31 36,285.15 2,26,977.13 (1,28,908.83) (33,143.06) (19,432.33) Foreign currency liabilities (D) 40,579.72 90,745.56 1,13,967.78 (34,086.84) (75,498.23) (1,01,559.46) Total liabilities (C + D) 1,36,627.03 1,27,030.71 3,40,944.91 (1,62,995.68) (1,08,641.29) (1,20,991.79) Items More than 5 years upto 7 More than 7 years Total years Loan Assets including accrued 1,99,651.49 6,03,884.24 15,58,933.72 interest (A) (1,96,247.67) (3,63,619.35) (13,50,245.44) Foreign currency assets (B) - - 26,804.63 (-) (-) (79,162.26) Total Assets (A+B) 1,99,651.49 6,03,884.24 15,85,738.35 (1,96,247.67) (3,63,619.35) (14,29,407.70) Rupee liabilities (C) 50,328.98 8,26,823.31 12,36,461.88 (78,931.26) (8,22,843.37) (10,83,258.86) Foreign currency liabilities (D) 90,145.98 4,55,818.91 7,91,257.94 (93,842.05) (4,82,174.89) (7,87,161.48) Total liabilities (C + D) 1,40,474.95 12,82,642.22 20,27,719.82 (1,72,773.31) (13,05,018.27) (18,70,420.34) As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 142 Cash Flow Statement for the year ended 31.03.2018 ( Rs. / Lakhs ) Particulars For the year ended For the year ended 31.03.18 31.03.17 A Cash Flow from Operating Activities: Profit Before Tax 56,074.94 52,817.94 Adjustment for: Depreciation 2,132.82 731.96 Provision for Non Performing Assets 8,087.87 12,390.93 Provision for Standard Assets 1,759.65 3,894.07 Foreign Exchange Fluctuations/Underlying exchange 2,189.61 -8,721.69 fluctuation Amortization of Capital Grant - -2.16 Loss on sale of Fixed Assets/Adjustment 0.03 0.39 Profit on Sale of Fixed Assets - -5.16 Operating profit before Working Capital Changes 70,244.92 61,106.27 Increase / Decrease in Loans and Advances - IREDA -2,26,449.96 -3,28,574.00 Other Non Current Assets -25,772.95 -1,36,601.63 Other Bank Balances 62,259.89 39,798.06 Other Current Assets 3,694.95 -1,367.48 Trade Receivable -1,952.00 -223.48 Foreign Currency Monetary Item Translation Difference a/c -21,391.95 - Other Long Term Liabilities 2,709.17 1,55,492.13 Other Current Liabilities -42,425.63 48,231.16 Trade Payable 719.47 329.59 Provisions 1,120.83 625.85 -2,47,488.18 -2,22,289.80 Cash Generated from Operations -1,77,243.26 -1,61,183.53 Income Tax -13,137.22 -16,411.87 Net Cash Generated from Operations -1,90,380.48 -1,77,595.40 B Cash Flow From Investing Activities Purchase of Fixed Assets -2,694.88 -15,408.69 Sale of Fixed Assets 0.04 9.44 Net Cash flow from Investing Activities -2,694.85 -15,399.25 C Cash Flow from Financial Activities Securities Premuim -5.04 - Dividend paid -2,550.06 - Dividend Tax paid -519.13 - Interim Dividend paid -10,500.00 -10,000.00 Dividend Tax on Interim Dividend paid -2,137.55 -2,035.76 Increase /Decrease in Short term Debts - -26.98 Increase /Decrease in Long term Debts 1,88,967.67 3,13,158.54 143 Particulars For the year ended For the year ended 31.03.18 31.03.17 Net Cash flow from Financing Activities 1,73,255.88 3,01,095.80 Net Increase in Cash and Cash Equivalents -19,819.45 1,08,101.16 Cash and Cash Equivalents at the beginning of the year 2,06,139.02 98,037.86 Cash and Cash Equivalents at the end of the year 1,86,319.57 2,06,139.02 Net Increase in Cash and Cash Equivalents -19,819.45 1,08,101.16 COMPONENTS OF CASH AND CASH EQUIVALENTS AS AT THE END OF THE PERIOD Postage Imprest 0.50 0.25 In Current Accounts with Banks 60,559.43 1,17,164.93 In Overdraft Accounts with Banks 6.25 0.24 In Deposit Accounts with Banks 1,25,753.40 88,973.11 Cheques under Collection/DD in hand - 0.50 1,86,319.57 2,06,139.02 Notes to the Cash Flow statement. 1 Previous years figures have been rearranged and regrouped wherever necessary. 2 Cash and cash equivalent includes foreign currency deposits which are available to meet the foreign currency loans only. 3 There is no such cash and cash equivalent balance held by IREDA that are not available for use for IREDA. 4 Total Deposits includes deposits of Rs. 77,500.00 Lakhs having original maturity of more than 90 days . As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 144 FORM AOC – 1 Statement Pursuant to Section 129(3) of the Companies Act , 2013 related to Associate Companies and Joint Ventures (Rupees in Lakhs) S. No. Particulars Remarks 1 Name of the Associate/Joint Venture M/s M. P. Wind Farms Limited . 2 Latest Audited Balance Sheet Date 31.03.2018 3 Share of Associate /Joint Venture held by the Company on the year end a) No. 1,68,000 shares (including 48,000 shares allotted as Bonus Shares ) b) Amount of investment in Associate /Joint Venture Rs. 12.00 Lakhs c) Extent of Holding 24% 4 Reason why the Associate /Joint Venture is not consolidated - 5 Net Worth attributable to shareholding Rs. 53.30 Lakhs 6 Profit / Loss for the year a) Considered in Consolidation Rs. 3.41 Lakhs b) Not Considered in Consolidation Rs. 10.80 Lakhs As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 145 Jain Chopra & Company Chartered Accountants F-12, IInd Floor, Bhagat Singh Market, New Delhi-110001 1960, Ist Floor, Outram Line, Delhi-110009 Ph.: 011-23340155, 27652776, Mob.: +91-9810247478 E-mail : jainchopra.company@gmail.com Independent Auditor’s Report To fair view and are free from material misstatement, whether The Members of due to fraud or error, which have been used for the purpose Indian Renewable Energy Development Agency Limited of preparation of the consolidated financial statements by the Directors of the Company, as aforesaid. Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial Auditor’s Responsibility statements of Indian Renewable Energy Development Our responsibility is to express an opinion on these Agency Limited, (the Company) and its joint venture company consolidated financial statements based on our audit. We have in which the company holds 24% equity share capital, which taken into account the provisions of the Act, the accounting comprise the Consolidated Balance Sheet as at March 31, and auditing standards and matters which are required to be 2018, the Consolidated Statement of Profit and Loss and the included in the audit report under the provisions of the Act Cash Flow Statement for the year then ended and a summary and the Rules made thereunder. of the significant accounting policies and other explanatory information. We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Management’s Responsibility for the Financial Statements Standards require that we comply with ethical requirements The Company’s Board of Directors is responsible for the and plan and perform the audit to obtain reasonable assurance matters stated in Section 134(5) of the Companies Act, 2013 about whether the financial statements are free from material (“the Act”) with respect to the preparation and presentation misstatement. of these consolidated financial statements that give a true and An audit involves performing procedures to obtain audit fair view of the consolidated financial position, consolidated evidence about the amounts and the disclosures in the financial financial performance and cash flows of the Company statements. The procedures selected depend on the auditor’s including its joint venture company in accordance with the judgment, including the assessment of the risks of material accounting principles generally accepted in India, including misstatement of the consolidated financial statements, whether the Accounting Standards specified under Section 133 of due to fraud or error. In making those risk assessments, the Act, read with Rule 7 of the Companies (Accounts) the auditor considers internal financial control relevant to Rules, 2014. This responsibility also includes maintenance of the Company’s preparation of the consolidated financial adequate accounting records in accordance with the provisions statements that give a true and fair view in order to design of the Act for safeguarding of the assets of the Company and audit procedures that are appropriate in the circumstances. for preventing and detecting frauds and other irregularities; An audit also includes evaluating the appropriateness of selection and application of appropriate accounting policies; the accounting policies used and the reasonableness of the making judgments and estimates that are reasonable and accounting estimates made by the Company’s Board of prudent; and design, implementation and maintenance of Directors, as well as evaluating the overall presentation of the adequate internal financial controls, that were operating consolidated financial statements. effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and We believe that the audit evidence obtained by us and the presentation of the financial statements that give a true and management information referred to in other matters paragraph 146 below, is sufficient and appropriate to provide a basis for our v. General Provision for Standard Assets amounting to Rs. audit opinion on the consolidated financial statements. 1,759.65 lacs made in the accounts include Rs.719.19 lacs for restructured account. Opinion Our opinion is not modified in respect of these In our opinion and to the best of our information and according matters. to the explanations given to us, the aforesaid consolidated financial statements give the information required by the Act Other Matters in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted We did not audit the financial statements of the joint in India, of the state of affairs of the Company as at March 31, venture company whose financial statements reflect total 2018, and its profit for the period ended on that date. assets of Rs. 2,67,44,807/- as at March, 31, 2018 and total revenue of Rs. 34,90,936/- for the year ended on that Emphasis of Matter date, the company’s share of 24% whereof, as considered in the consolidated financial statements. These financial We draw attention to the following matters on the consolidated statements have not been audited by us and our opinion on financial statements the consolidated financial statements, in so far as it relates Refer Note to the amounts and disclosures included in respect of joint venture company and our report in terms of sub-sections i. No. 24(30): The company has changed its accounting (3) and (11) of Section 143 of the Act, in so far as it relates policy on recognition of foreign exchange profit/loss to the joint venture company is based solely on the reports on translation of unhedged foreign exchange long term of the other auditors. monetary items. The company was hitherto charging all such profits/losses to the statement of profit & loss. Our opinion on the consolidated financial statements, and our The company has now started amortizing such forex report on other legal and regulatory requirements below, is not gains/losses over the residual period of respective modified in respect of the above matters with respect to our maturities of such forex items by opting the option reliance on the work done and the reports of the other auditors available in Accounting Standard 11 on ‘The Effects of and the financial statements. changes in Foreign Exchange Rates’. Consequently, the Report on Other Legal and Regulatory Requirement profit before tax and after tax for the year is higher by Rs. 21,391.95 lacs and Rs.15,145.13 lacs respectively. 1. As required by sub-section (5) of section 143 of the Act we give information in respect of the directions issued ii. No. 24(32): M/s Wind World India a company that has by the Comptroller and Auditor-General of India in stood as Corporate Guarantor to loans amounting to the Annexure-A. Rs. 17,924.03 lacs given by the company to the entities, which are subsidiaries of the said company, has been 2. As required by Section 143 (3) of the Act, we report referred to National Company Law Tribunal (NCLT). that: Further loans amounting to Rs 11,630.15 lacs to one of such entities has become Non Performing Asset during a) we have sought and obtained all the the year. The effect of such action on other loans cannot information and explanations which to the best be stated. of our knowledge and belief were necessary for the purposes of our audit of the aforesaid iii. No. 24(9) regarding the obligation under section 135 consolidated financial statements; of The Companies Act, 2013 on Corporate Social Responsibility (CSR) having not been discharged b) in our opinion, proper books of account as during the year. required by law relating to preparation of the aforesaid consolidated financial statements have iv. No. 24(21) which states that specific audit of accounts been kept by the Company so far as it appears of Generation Based Incentive funds has not been from our examination of those books and the done. management information; 147 c) the consolidated Balance Sheet and the Rules, 2014, in our opinion and to the best of our consolidated Statement of Profit and Loss dealt information and according to the explanations with by this Report are in agreement with the given to us: relevant books of account maintained for the purpose of preparation of the consolidated i. the Company has disclosed the impact financial statements; of pending litigations on its financial position in its consolidated financial d) in our opinion, the aforesaid consolidated statements – Refer Note 24(3) to the financial statements comply with the Accounting consolidated financial statements; Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) ii. the Company did not have any long- Rules, 2014; term contracts including derivative contracts for which there were any e) On the basis of written representations obtained material foreseeable losses; from the directors none of the directors are disqualified from being appointed as a director iii. there is no amounts, required, to be in terms of Section 164(2) of the Act as on transferred by the Company to the March 31, 2018, however in the case of the Investor Education and Protection Fund. company the said provisions do not apply as it is a Govt. Company; For JAIN CHOPRA & COMPANY f) with respect to the adequacy of the internal Chartered Accountants financial controls over financial reporting of Firm’s Registration No.002198N the company and the operating effectiveness of such controls, refer to our separate report in “Annexure B’’, and Sd/- Place: New Delhi Ashok Chopra g) with respect to the other matters to be included Dated: 31.05.2018 Partner in the Auditor’s Report in accordance with Rule (Membership No.017199) 11 of the Companies (Audit and Auditors) 148 Annexure- A to the Independent Auditors’ Report Directions under section 143(5) of the Companies Act, Answer:- During the year the company had 2013 issued by the Comptroller & Auditor General of India. sanctioned settlements of seven of its borrowers under its One Time Settlement Scheme. Out of these, 1. Whether the company has clear title/lease deeds for six accounts had already been technically written freehold and leasehold respectively? If not please state off in earlier years. In the seventh case, which was the area of freehold and leasehold land for which title/ considered doubtful of recovery and full provision lease deeds are not available? had been made for, there is no waiver of principal Answer:- On the basis of information and outstanding at Rs. 552.65 lacs. However unrealized explanations provided, the company holds clear title amount of interest and other charges amounting to to the properties, which have been allotted/purchased Rs. 335.32 lacs has been waived by way of sacrifice. in the name of the company. The title deeds/lease 3. Whether proper records are maintained for deeds have yet to be executed in the case of its office inventories lying with third parties & assets received premises in New Delhi at India Habitat Centre (Area as gift/grant(s) from the Govt. or other authorities. 1048.79 sqmtr) and at August Kranti Bhawan, (Area 1813.175 sqmtr), and its residential flat in New Delhi Answer: - The Company does not have any inventories. at Jangpura, (170.40sqmtr). Further as per information and explanations provided the Company has not received any Grants from the Further, on the basis of information provided, in Govt. or other authorities during the year. respect of the solar plant, the land is owned by Kerala State Electricity Board (KSEBL), Govt. of Kerala who will lease out the same to Renewable Power For JAIN CHOPRA & COMPANY Corporation of Kerala Ltd.(RPCKL) Chartered Accountants Firm’s Registration No.002198N The Company has been informed that no lease money will be payable for the first five years. However, the terms of the lease for the remaining period is not Sd/- known as on date. The company does not acquire any Place: New Delhi Ashok Chopra title to the land. Dated: 31.05.2018 Partner 2. Whether there are any cases of waiver/write off of (Membership No.017199) debts/loans/interest etc., if yes, the reasons there for and amount involved. 149 Annexure-B to the Independent Auditor’s Report of even date on the Consolidated Financial Statements of Indian Renewable Energy Development Agency Limited. Report on the Internal Financial Controls under Clause (i) of India. Those Standards and the Guidance Note require that of Sub-section 3 of Section 143 of the Companies Act, 2013 we comply with ethical requirements and plan and perform (“the Act”) the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting In conjunction with our audit of the consolidated financial was established and maintained and if such controls operated statements of the Company as of and for the year ended on March effectively in all material respects. 31, 2018. We have audited the internal financial controls over financial reporting of Indian Renewable Energy Development Our audit involves performing procedures to obtain audit Agency limited (hereinafter referred to as “the Company”). We evidence about the adequacy of the internal financial have not audited the joint venture Company incorporated in controls system over financial reporting and their operating India in which the company holds 24% equity share capital. effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of Management’s Responsibility for Internal Financial internal financial controls over financial reporting, assessing Controls the risk that a material weakness exists, and testing and The respective Board of Directors of the Company and its evaluating the design and operating effectiveness of internal joint venture company are responsible for establishing and control based on the assessed risk. The procedures selected maintaining internal financial controls based on the internal depend on the auditor’s judgement, including the assessment of control over financial reporting criteria established by the the risks of material misstatement of the financial statements, Company considering the essential components of internal whether due to fraud or error. control stated in the Guidance Note on Audit of Internal We believe that the audit evidence we have obtained is Financial Controls Over Financial Reporting issued by the sufficient and appropriate to provide a basis for our audit Institute of Chartered Accountants of India (ICAI). These opinion on the Company’s internal financial controls system responsibilities include the design, implementation and over financial reporting. maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient Meaning of Internal Financial Controls over Financial conduct of its business, including adherence to the respective Reporting company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy A company’s internal financial control over financial reporting and completeness of the accounting records, and the timely is a process designed to provide reasonable assurance regarding preparation of reliable financial information, as required the reliability of financial reporting and the preparation of under the Companies Act, 2013. financial statements for external purposes in accordance with generally accepted accounting principles. A company’s Auditor’s Responsibility internal financial control over financial reporting includes Our responsibility is to express an opinion on the Company’s those policies and procedures that internal financial controls over financial reporting based on 1) pertain to the maintenance of records that, in reasonable our audit. We conducted our audit in accordance with the detail, accurately and fairly reflect the transactions and Guidance Note on Audit of Internal Financial Controls Over dispositions of the assets of the company; Financial Reporting (the “Guidance Note”) issued by the ICAI and the Standards on Auditing, issued by ICAI and deemed 2) provide reasonable assurance that transactions are to be prescribed under section 143(10) of the Companies Act, recorded as necessary to permit preparation of 2013, to the extent applicable to an audit of internal financial financial statements in accordance with generally controls, both issued by the Institute of Chartered Accountants accepted accounting principles, and that receipts and 150 expenditures of the company are being made only in reporting criteria established by the Company considering accordance with authorisations of management and the essential components of internal control stated in the directors of the company; and Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered 3) provide reasonable assurance regarding prevention or Accountants of India. However in case of its joint venture, timely detection of unauthorised acquisition, use, or being small company, no separate reporting is required on disposition of the company’s assets that could have a Internal Financial Control as such we cannot comment on the material effect on the financial statements. same. Inherent Limitations of Internal Financial Controls over a. Delegation of authority at various levels to be Financial Reporting reviewed and is pending for a number of years Because of the inherent limitations of internal financial b. Information technology system for maintenance controls over financial reporting, including the possibility of records to be updated. of collusion or improper management override of controls, material misstatements due to error or fraud may occur and c. Preparation of IT enabled process in respect of not be detected. Also, projections of any evaluation of the income under miscellaneous heads is in progress. internal financial controls 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 For JAIN CHOPRA & COMPANY the policies or procedures may deteriorate. Chartered Accountants Firm’s Registration No.002198N Opinion In our opinion, subject to the following, the Company have in Sd/- all material respects, an adequate internal financial controls Place: New Delhi Ashok Chopra system over financial reporting and such internal financial Dated: 31.05.2018 Partner controls over financial reporting were operating effectively as (Membership No.017199) at March 31, 2018, based on the internal control over financial 151 COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 143(6)(b) READ WITH SECTION 129(4) OF THE COMPANIES ACT, 2013 ON THE CONSOLIDATED FINANCIAL STATEMENTS OF INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED FOR THE YEAR ENDED 31 MARCH 2018 The preparation of consolidated financial statements of the Indian Renewable Energy Development Agency Limited for the year ended 31 March 2018 in accordance with the financial reporting framework prescribed under the Companies Act, 2013(Act) is the responsibility of the management of the Company. The statutory auditor/auditors appointed by the Comptroller and Auditor General of India under section 139(5) read with section 129(4) of the Act is/are responsible for expressing opinion on the financial statements under section 143 read with section 129(4) of the Act based on independent audit in accordance with 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 31st May 2018. I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary audit under section 143(6) (a) read with section 129(4) of the Act of the consolidated financial statements of Indian Renewable Energy Development Agency Limited for the year ended 31 March 2018. Further, section 139(5) and 143(6)(b) of the Act are not applicable to MP Windfarms Limited being private entity, for appointment of their Statutory Auditor nor for conduct of supplementary audit. Accordingly, C&AG has neither appointed the Statutory Auditors nor conducted the supplementary audit of this entity. 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 personnel and a selective examination of some of the accounting records. On the basis of my supplementary audit, nothing significant has come to my knowledge which would give rise to any comment upon or supplement to statutory auditors’ report. For and on the behalf of the Comptroller & Auditor General of India Place: New Delhi Date: 18.07.2018 Sd/- (L. Siddhartha Singh) Principal Director of Commercial Audit & Ex-Officio Member, Audit Board-IV 152 INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED Consolidated Balance Sheet as at 31.03.2018 Particulars Note No. As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) I. EQUITY AND LIABILITIES (1) Shareholders’ Funds (a) Share Capital 2 78,460.00 78,460.00 (b) Reserves and Surplus 3 1,75,239.77 1,72,578.99 (2) Share Application Money pending allotment - - (3) Non-current liabilities (a) Long-term borrowing 4 14,39,471.76 12,63,109.93 (b) Deferred tax liabilities (Net) 24(16) 773.87 - (c) Other long-term liabilities 5 1,90,396.63 1,87,691.75 (d) Long-term provisions 6 6,807.67 5,632.74 (4) Current liabilities (a) Short-term borrowing 7 0.06 - (b) Trade payables 8 13,868.53 13,778.44 (Includes balance payable to MSME - Nil (Previous year Nil)) (c) Other current liabilities 9 1,11,295.50 1,38,924.13 (d) Short-term provisions 10 11,468.21 10,299.23 TOTAL 20,27,782.01 18,70,475.22 II. ASSETS (1) Non-current assets (a) Fixed Assets 11 (i) Tangible assets 31,372.87 31,732.03 (ii) Intangible assets 25.21 21.68 (iii) Capital work-in-progress 303.19 - (iv) Intangible assets under development 5.59 21.40 31,706.86 31,775.11 (b) Non-current investments 12 - - (c) Deferred tax assets (Net) 24(16) - 5,462.15 (d) Long-term loans and advances 13 12,52,676.47 10,43,633.55 (e) Other non-current assets 14 1,85,112.68 1,59,368.51 (2) Current assets (a) Trade Receivable 15 2,195.64 247.40 (b) Cash and bank balances 16 2,31,873.29 3,13,950.31 (c) Short-term loans and advances 17 3,08,373.01 2,99,052.33 (d) Other current assets 18 15,844.05 16,985.86 TOTAL 20,27,782.01 18,70,475.22 Significant Accounting Policies 1 Notes on Financial Statements 2 to 24 As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 153 INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED Consolidated Statement of Profit and Loss for the year ended on 31.03.2018 Particulars Note No. For the year For the year ended ended 31.03.18 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) I. Revenue from operations 19 1,77,921.37 1,47,950.05 II. Other Income 20 107.46 247.88 III. Total Revenue (I+II) 1,78,028.83 1,48,197.94 IV. Expenses: Employee Benefit Expenses 21 4,462.23 2,825.54 Finance Cost 22 1,02,522.50 72,594.08 Depreciation and Amortisation Expenses 11 2,133.10 733.09 Other Expenses 23 2,979.14 2,156.08 Bad Debts Written Off - - Less Provision for Bad and Doubtful Debts created in - - earlier years written back Provision for Bad and Doubtful Debts 8,087.87 12,390.93 General Provision for Standard Assets 1,759.65 3,894.07 Prior Period Adjustments (Net) 24(17) 7.71 (181.80 ) 1,21,952.20 94,411.99 V. Profit before Exceptional & Extraordinary items and tax (III-IV) 56,076.63 53,785.94 VI. Exceptional items - 970.64 VII. Profit before Extraordinary items and tax (V-VI) 56,076.63 52,815.30 VIII. Extraordinary items - - IX. Profit before tax (VII-VIII) 56,076.63 52,815.30 X. Tax Expenses (1) Current Tax 10,519.65 15,558.68 (2) Income Tax- Earlier Years - - (3) Deferred Tax 6,236.02 758.31 XI. Profit for the period (IX-X) 39,320.96 36,498.31 XII. Earning per Equity Share: (1) Basic & Diluted (Annualised) (Rs.) 501.19 465.22 (Due to subdivision of shares (of F.V. Rs. 10/-), the previous year (ending 31.03.17) is 24(11) 5.01 4.65 not comparable. However the same has been re-grouped for matching & comparison.) (On F.V. Rs. 10/-) Significant Accounting Policies 1 Notes on Financial Statements 2 to 24 As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 154 NOTE ‘1’ SIGNIFICANT ACCOUNTING POLICIES 1) General The financial statements are prepared on accrual basis of accounting under the historical cost convention in accordance with the Generally Accepted Accounting Principles in India as per section 129, the Accounting Standards referred to in Section 2 clause II of The Companies Act, 2013 and other relevant provisions of the said Act. 2) Revenue and Expense Recognition (i) Income and expenses are accounted for on accrual basis with the exception of : (a) Income on Non- Performing Assets where interest and/or principal has remained overdue for a period of more than two quarters at the end of financial year, is recognized as and when actually realized. (b) The interest income – funded interest/ overdue interest in respect of Non Performing Assets (NPAs) which are partly refinanced on the basis of National Clean Energy Fund (NCEF) Scheme approved by MNRE - in this regard the interest income is recognized as and when such accounts are eligible under the scheme and 100% provision in respect of such income recognized is made . (ii) (a) Loan/Bond issue expenses such as Front-end fee/Arranger’s fee, Stamp duty, etc., are charged to Statement of Profit and Loss in the year of issue of such loan/bond after utilization of security premium amount , if available and (b) Discount on bond issuance or any excess in amount payable on redemption of bonds over issue price are amortised over the tenor of bond and same shall be charged to Statement of Profit and Loss during the tenor of bond after utilization of security premium amount , if any . (iii) Prepaid expenses and prior period expenses/income upto Rs. 20,000/- per item are charged to Statement of Profit & Loss as and when incurred/adjusted/received. (iv) Insurance claims are accounted for as and when admitted by the insurance company. (v) Asset Classification and Provisioning with respect of Loans : • Assets classification a) Standard Asset: - An asset is classified as Standard Asset if it is not a Non-Performing Asset (NPA). b) Non performing Asset: A non-performing asset (NPA) is a loan where: ➢ An asset, in respect of which, interest and/ or principal has remained overdue for a period of more than two quarters. ➢ The company classifies NPAs at the end of the financial year. c) The Non-performing Asset is further classified as below:- I. Sub-standard Assets A sub-standard asset is one, which has remained NPA for a period of upto 18 months. 155 II. Doubtful Assets A doubtful asset is one, which has remained in the substandard category for a period exceeding 18 months. III. Loss assets A Loss asset is one which is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted although there may be some salvage or recovery value and where loss has been identified by the company or internal or external auditors or any other relevant Government authority but the amount has not been written off wholly or the asset remains doubtful asset for a period exceeding 5 years. Provisioning against loans The provisioning in respect of loans & advances is made as under: (i) Standard Assets: provision in respect of Standard Assets is made @ 0.40% in respect of the outstanding standard assets. In addition, the Board of Directors may decide to create floating provision on Standard Asset. The floating provision can not be reversed by credit to statement of P&L Account. It can only be utilised for making specific provisions in respect of impaired accounts. (ii) Sub-standard Assets: A provision of 10% of loan outstanding is made. (iii) Doubtful Assets: 100% of the extent to which the loan is not covered by the realisable value of the security to which IREDA has a valid recourse. With regard to secured portion of loan, provision as follows is made:- Period for which the asset has been % of provision considered as doubtful Upto one year 20% 1 to 3 year 30% More than 3 years Between 50% to 100% of loan outstanding depending upon risk perception. (iv) Loss Assets: 100% of the loan outstanding is provided for. (v) In joint venture company, the revenue from sales and /or services are recognized when requirements as to performance is satisfied, which represents transfer of significant risks and rewards to the customers as per terms of relevant contracts and no significant uncertainty remains regarding the consideration. Sales & Income are shown exclusive of taxes, if any, applicable on sales/services. Applicable taxes are accounted for separately. 3) Foreign Currency Transactions (i) Transactions in foreign currency (except the foreign currency loans where derivative transactions have been made with banks), are recorded at the exchange rate prevailing at the date of the transaction. The exchange differences arising on reporting of long-term foreign currency monetary items, other than the hedged items, at RBI reference rates prevailing at the end of each reporting period, different from those at which they were initially recorded during the period, or reported in previous financial statements, are accumulated in a “Foreign Currency Monetary Item Translation Difference Account” and amortized over the balance period of such long term monetary item, by recognition as income or expense in each of such periods. 156 Long-term foreign currency monetary items are those which have a term of twelve months or more at the date of origination. Short-term foreign currency monetary items (having a term of less than twelve months at the date of origination) are translated at RBI reference rates prevailing at the end of each reporting period. The resultant exchange fluctuation is recognized as income or expense in each of such periods. (ii) The transaction in foreign currency loans, where Derivative transaction take place, are recorded at the contracted exchange rate on deal date till the Period of maturity of derivative deals. The difference between the exchange rate at the date of transaction and derivatives rate is recognized as income or expense in the Statement of Profit and Loss. (iii) Derivative transactions includes principal swap, Currency & Interest Rate Swap (CIRS), forwards, interest rate swaps, cross currency swaps, currency and cross currency options etc. to hedge foreign currency assets and liabilities. (iv) These derivative transactions are done for hedging purpose and not for trading or speculative purpose. These are accounted for on accrual basis and are not marked to market. 4) Fixed Assets Fixed assets are stated at historical cost less accumulated depreciation. 5) Intangible Assets Intangible assets are recognized when it is probable that future economic benefit attributable to the assets will flow to the company and the cost of the assets can be measured reliably. Such assets are stated at cost less accumulated amortization. 6) Depreciation/Amortization (i) Depreciation on fixed assets (including leasehold properties, Roads and Leaseholds land of Solar Power Project) other than on library books, intangible assets and assets of solar power plant, is provided as per the useful life mentioned and in the manner prescribed in Schedule II of The Companies Act, 2013 on written down value method. (ii) Depreciation on Library books is provided @ 100% in the year of purchase. (iii) Intangible assets are amortized over their estimated useful life. The estimated useful life does not exceed 10 years. (iv) Depreciation on assets excluding Roads and Leaseholds land of Solar Power Project has been provided on Straight Line Method at rates/methodology prescribed under the relevant Central Electricity Regulatory Commission (CERC) and relevant state Commission Tariff Orders. (v) Depreciation is provided @100% in the financial year of purchase in respect of assets of Rs. 5000 or less. 7) Investments Long term investments are carried at cost. Provision for diminution in the value of such investments is made to recognize the decline other than temporary, in the value of the investments. 8) Loans Loans secured against Hypothecation, English Mortgage, Equitable Mortgage and Joint Equitable Mortgage and guaranteed by Banks/Financial Institution/Central Government/State Government as the case may be, are classified as fully secured. 9) Grants (i) Grants for acquisition of eligible fixed assets are accounted for as capital grants. Such grants are allocated to income over the periods and in the proportions in which the depreciation on those assets is charged. 157 (ii) Grant-in-aid for financing projects in specified sectors of New and Renewable Sources of Energy (NRSE) is treated and accounted for as Capital Reserve/Grant. (iii) The expenditure incurred under Technical Assistance Programme (TAP) is accounted for as recoverable and shown under the head ‘Current Assets’. The assistance reimbursed from Multilateral/Bilateral Agencies is credited to the said account. 10) Employee Benefits (A) Short Term Employee Benefits Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the Statement of Profit and Loss of the year in which the related service is rendered. (B) Retirement Benefits 1. The liability for retirement of employees in respect of provident fund, benevolent fund, superannuation fund and Gratuity, which is ascertained annually on actuarial valuation at the year end, are accrued and funded separately. 2. The liabilities for leave encashment, sick leave and post retirement medical benefits and baggage allowance to employees are accounted for on accrual basis based on actuarial valuation at the year end. 11) Borrowing Cost Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets . All other borrowing costs are recognized as an expense in the period they are incurred . 12) Provisions and Contingent Liabilities (i) Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:- (a) the Company has a present obligation as a result of a past event; (b) a probable outflow of resources embodying economic benefits is expected to settle the obligation; and (c) the amount of the obligation can be reliably estimated. (ii) Contingent liability is disclosed in the case of:- (a) a present obligation arising from a past event when it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or; (b) a possible obligation, unless the probability of outflow in settlement is remote. (iii) Reimbursement expected in respect of expenditure required to settle any liability is recognized only when it is virtually certain that the reimbursement will be received. 158 Notes on Consolidated Financial Statements for the year ended 31.03.2018 NOTE-‘2’ SHARE CAPITAL PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Authorised 6,00,00,00,000 Equity Shares of Rs. 10 each. 6,00,000.00 6,00,000.00 (Previous year 6,00,00,000 Equity Shares of Rs. 1,000 each.) Issued, Subscribed & Fully Paid up 78,46,00,000 Equity Shares of Rs. 10 each fully paid up 78,460.00 78,460.00 (Previous Year 78,46,000 Equity Shares of Rs. 1,000 each). Total 78,460.00 78,460.00 Reconciliation of Equity Shares PARTICULARS Equity Shares Equity Shares Number ( Rs. / Lakhs ) Number ( Rs. / Lakhs ) 2017-18 2016-17 Shares outstanding -Opening 78,46,00,000.00 78,460.00 78,46,000.00 78,460.00 Shares issued during the period - - - - Shares bought back during the period - - - - Shares outstanding -Closing 78,46,00,000.00 78,460.00 78,46,000.00 78,460.00 Foot Notes: (i) 100% Equity Shares are held by Government of India. (ii) Equity Shareholders have full voting rights with no restrictions. (iii) All the Equity Shares are fully paid up in cash. 159 NOTE-‘3’ RESERVES & SURPLUS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) a. Capital Reserves i. Capital Grant from world bank for purchase of Fixed Assets Opening Balance 1.99 4.15 (+) Received During the year - - (-) Transferred to Miscellaneous Income - 2.16 Closing Balance 1.99 1.99 ii. Grant-in-aid from Government of Netherlands 1,678.59 1,678.59 iii. Grant-in-aid from World Bank 8,394.84 8,394.84 iv. Other Capital Grant 601.44 601.44 v. Securities Premium Opening Balance 5.04 5.04 (+) Addition during the year - - (-) Written Back in Current Year 5.04 - Closing Balance - 5.04 vi. 24% share in Bonus Shares in M.P.Wind Farms 4.80 4.80 10,681.66 10,686.70 b. Special Reserve (under Section 36(1)(viii) of the Income Tax Act, 1961) Opening Balance 65,831.99 54,136.09 (+) Addition during the year 7,817.28 11,695.90 (-) Written Back in Current Year - - Closing Balance 73,649.26 65,831.99 c. Debenture Redemption Reserve Opening Balance 12,022.82 7,393.71 (+) Addition during the year 4,629.11 4,629.11 (-) Written Back in Current Year - - Closing Balance 16,651.93 12,022.82 d. General Reserve Opening Balance 83,967.70 78,917.70 (+) Addition during the year 11,600.00 5,050.00 (-) /(+) Transfer to / from Profit & Loss Account - - Closing Balance 95,567.70 83,967.70 24% Share in MP Wind Farms 5.94 5.94 Closing Balance 95,573.64 83,973.64 160 e. Foreign Currency Monetary Item Translation Difference Account Opening Balance - - (+) Foreign Currency Gains/ Loss on Long term monetary items during the (23,581.56) year (-) Amortisation during the year 2,189.61 - Closing Balance (21,391.95) - f. Profit & Loss Account Opening Balance 33.49 15.15 (+) Net Profit for the current year 39,320.96 36,498.31 (-) Interim Dividend 10,500.00 10,000.00 (-) Corporate Dividend Tax on Interim Dividend 2,137.55 2,035.76 (-) Proposed Dividend 2,183.50 2,550.06 (-) Corporate Dividend Tax on Proposed Dividend 444.51 519.14 (-) Transfer to Special Reserve 7,817.28 11,695.90 (-) Transfer to Debenture Redemption Reserve 4,629.11 4,629.11 (-)/+ Transfer to / from General Reserve (11,600.00) (5,050.00) Closing Balance 42.50 33.49 24% Share in MP Wind Farms 30.36 30.36 Closing Balance 75.23 63.85 Total 1,75,239.77 1,72,578.99 161 NOTE-‘4’ LONG TERM BORROWINGS PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. Bonds I) Taxfree Bonds - Non Convertible Redeemable Debentures (Secured by paripassu charge on Loans and Advances (book debts) of the company.) (i) 7.68 % Tax free Bonds Redeemable at par on 21-01-2036 7,499.88 7,499.88 (Series XIV Tranche-I-IIIB- 2015-16) (ii) 7.43 % Tax free Bonds Redeemable at par on 21-01-2036 3,644.42 3,644.42 (Series XIV Tranche-I-IIIA- 2015-16) (iii) 8.80% Tax free Bonds Redeemable at par on 13-03-2034 14,416.42 14,416.42 (Series XIII Tranche-I-IIIB- 2013-14) (iv) 8.55% Tax free Bonds Redeemable at par on 13-03-2034 3,881.23 3,881.23 (Series XIII Tranche-I-IIIA- 2013-14) (v) 7.74 % Tax free Bonds Redeemable at par on 21-01-2031 48,351.53 48,351.53 (Series XIV Tranche-I-IIB- 2015-16) (vi) 7.49 % Tax free Bonds Redeemable at par on 21-01-2031 88,426.52 88,426.52 (Series XIV Tranche-I-IIA- 2015-16) (vii) 8.56% Tax free Bonds Redeemable at par on 27-03-2029 3,600.00 3,600.00 (Series XIII Tranche-I-IC- 2013-14) (viii) 8.80% Tax free Bonds Redeemable at par on 13-03-2029 23,455.08 23,455.08 (Series XIII Tranche-I-IIB- 2013-14) (ix) 8.55% Tax free Bonds Redeemable at par on 13-03-2029 12,307.69 12,307.69 (Series XIII Tranche-I-IIA- 2013-14) (x) 7.53 % Tax free Bonds Redeemable at par on 21-01-2026 12,788.59 12,788.59 (Series XIV Tranche-I-IB- 2015-16) (xi) 7.28 % Tax free Bonds Redeemable at par on 21-01-2026 10,889.06 10,889.06 (Series XIV Tranche-I-IA- 2015-16) (xii) 7.17% Tax free Bonds Redeemable at par on 01-10-2025 28,400.00 28,400.00 (Series XIV Private IC- 2015-16) (xiii) 8.41% Tax free Bonds Redeemable at par on 13-03-2024 10,529.14 10,529.14 (Series XIII Tranche-I-IB- 2013-14) (xiv) 8.16% Tax free Bonds Redeemable at par on 13-03-2024 7,575.90 7,575.90 (Series XIII Tranche-I-IA- 2013-14) 162 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) II) Taxable Bonds - Non Convertible Redeemable Debentures (Secured by negative lien on Loans and Advances (Book Debts) of the company .) (i) 8.49% Taxable Bonds Redeemable at par on 10-05-2028 20,000.00 20,000.00 (Series VB- 2013-14) (ii) 8.05% Taxable Green Bonds Redeemable at par on 29-03-2027 50,000.00 50,000.00 (Series VI B - 2016-17) (iii) 8.12% Taxable Green Bonds Redeemable at par on 24-03-2027 20,000.00 20,000.00 (Series VI A - 2016-17) (iv) 9.02% Taxable Bonds Redeemable at par on 24-09-2025 25,000.00 25,000.00 (Series III- 2010-11 - Tranche-II) (v) 8.44% Taxable Bonds Redeemable at par on 10-05-2023 30,000.00 30,000.00 (Series VA- 2013-14) (vi) 9.49% Taxable Bonds Redeemable at par on 04-06-2022 30,000.00 30,000.00 (Series IV- 2012-13 ) (vii) 8.87% Taxable Bonds Redeemable at par on 24-09-2020 15,000.00 15,000.00 (Series III- 2010-11 - Tranche-I) (viii) 8.85% Taxable Bonds Redeemable at par on 13-01-2020 15,000.00 15,000.00 (Series II- 2009-10) (ix) 9.60% Taxable Bonds Redeemable at par on 24-02-2019 10,000.00 10,000.00 (Series I- 2008-09) Less: Current Maturity 10,000.00 - - 10,000.00 III) Masala Bonds (Unsecured ) (i) 7.125% Green Masala Bond Redeemable at par on 10-10-2022 1,95,000.00 - (Series I- 2017-18) Total of Bonds 6,75,765.46 4,90,765.46 B. Term Loans - Secured a. From Banks (i) Bank of Baroda (INR Loan) Repayment on half yearly basis 4,493.11 6,016.63 Less: Current Maturity starting from 15.01.2003 till 1,679.84 1,523.52 (Secured by US$ deposit with BOB 15.07.2021. Installments ranging 2,813.27 4,493.11 London) between Rs. 1,91,47,506 to Rs. 9,61,26,342 . (ii) Union Bank of India Term Loan-II Interest @ base rate (Floating), 714.10 3,571.30 Less: Current Maturity Repayment on quarterly basis 714.10 2,857.20 (Secured by pari-passu charge on the starting from 09.09.14. Balance - 714.10 Loans and Advances (Book Debts)) repayable in 8 Installments of Rs. 7,14,30,000 each and 1 installment of Rs 7,14,10,000 . 163 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (iii) Loan I from Asian Development Bank Repayment on half yearly basis 6,682.12 8,205.52 (ADB) starting from 15.01.2003 till 1,682.91 1,525.77 Less: Current Maturity 15.07.2021 in installments ranging 4,999.21 6,679.75 (Secured by pari-passu charge on the between US$ 398,900 to US$ Loans and Advances (Book Debts) and 2,428,269 . Further Guaranteed by the Government of India) (iv) KFW Loan-V Repayment on half yearly basis 4,524.98 3,886.68 Less: Current Maturity starting from 30.12.2018 till - - (Secured by pari-passu charge on the 30.12.2027 in 16 installments 4,524.98 3,886.68 Loans and Advances (Book Debts)) of Euro 5,263,000 each and 3 installments of Euro 5,264,000 each. b. From Others (i) Small Industrial Development Bank of Interest @ 9.35% (Fixed upto 4,400.00 7,200.00 India 28.12.17), repayable on quarterly 2,800.00 2,800.00 Less: Current Maturity basis starting from 10.06.2016 in 1,600.00 4,400.00 (Secured by pari-passu charge on the 14 installments of Rs. 7,00,00,000 Loans and Advances (Book Debts)) each and 1 installment of Rs. 2,00,00,000 . C. Term Loans - Unsecured a. From Banks (i) Nordic Investment Bank (NIB) Repayment on half yearly basis 6,064.01 10,096.34 Less: Current Maturity starting from 17.12.2012 till 4,042.67 4,038.54 17.06.2019 in 8 installments of 2,021.34 6,057.81 US$ 3,571,428.58 each and 6 installments of US$ 3,571,428.56 each . (ii) KFW Loan-I Repayment on half yearly basis 21,259.99 19,171.19 Less: Current Maturity starting from 30.12.2009 till 965.73 833.01 (Guaranteed by the Government of India) 30.12.2039 in 28 installments 20,294.26 18,338.18 of Euro 586,451.79 each, 32 installments of Euro 586,963.08 each and 1 installment of Euro 586,963 . (iii) KFW Loan-II Repayment on half yearly basis 12,320.61 14,316.68 Less: Current Maturity starting from 30.09.2012 till 4,484.50 3,820.45 (Guaranteed by the Government of India) 30.09.2020 in 16 installments 7,836.11 10,496.22 of Euro 2,858,000 each & 1 installment of Euro 4,272,000 . (iv) KFW Loan-III Repayment on half yearly basis 16,511.08 14,399.19 Less: Current Maturity starting from 30.06.2020 till - - (Guaranteed by the Government of India) 30.12.2049 in 9 installments 16,511.08 14,399.19 of Euro 332,000 each & 51 installments of Euro 333,000 each . 164 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (v) KFW Loan-IV Repayment on half yearly basis 87,064.17 97,819.93 Less: Current Maturity starting from 30.06.2014 till 17,412.52 16,303.08 (Guaranteed by the Government of India) 30.12.2022 in 16 installments 69,651.65 81,516.85 of Euro 11,111,000 each and 2 installments of Euro 11,112,000 each . (vi) Loan II from International Bank for Repayment on half yearly basis 8,378.87 11,398.83 Reconstruction and Development (IBRD) starting from 15.12.2005 till 3,202.01 3,019.95 Less: Current Maturity 15.06.2020 in installments ranging 5,176.87 8,378.87 (Guaranteed by the Government of India) from US$ 1,309,700 to US$ 2,651,500 . (vii) Loan II from Asian Development Bank Repayment on half yearly basis 91,881.30 72,771.58 (ADB) starting from 15.04.2020 till 4,243.03 - Less: Current Maturity 15.10.2034 in 29 equal installments 87,638.27 72,771.58 (Guaranteed by the Government of India) of US$ 3,667,665.54 each and 30th installment of US$ 3,667,676.55 . (viii) Loan III from International Bank for Repayment on half yearly basis 609.75 - Reconstruction and Development (IBRD) starting from 15.04.2022 till - - Less: Current Maturity 15.10.2035 in 27 installments of 609.75 - (Guaranteed by the Government of India) US$ 2,677,500.00 each and 28th installment of US$ 2,707,500.00. (ix) Loan III from International Bank for Repayment on half yearly basis 162.60 - Reconstruction and Development starting from 15.04.2027 till - - (IBRD)-CTF 15.10.2056 in 20 installments 162.60 - Less: Current Maturity of US$ 230,000.00 each and 40 (Guaranteed by the Government of India) installments of US$ 460,000.00 each. b. From Others (i) Loan from NCEF- IREDA Repayable in 33 - 40 structured 9,409.97 10,168.43 Less: Current Maturity quaterly instalments . 795.16 505.81 8,614.81 9,662.62 (ii) Agence Francaise De Developpement Repayment on half yearly basis 48,936.08 52,695.40 (AFD) starting from 31.07.2016 till 3,764.31 3,763.96 Less: Current Maturity 31.01.2031 in 30 installments of 45,171.77 48,931.44 (Guaranteed by the Government of India) Euro 2,333,333.33 each . (iii) Agence Francaise De Developpement Repayment on half yearly basis 48,611.30 45,109.49 (AFD)-II starting from 30.11.2019 till - - Less: Current Maturity 30.05.2029 in 20 installments of 48,611.30 45,109.49 Euro 5,000,000 each . (iv) Japan International Cooperation Agency Repayment on half yearly basis 1,87,712.23 1,88,265.49 (JICA) starting from 20.6.2021 to - - Less: Current Maturity 20.06.2041 in 1 installment of JPY 1,87,712.23 1,88,265.49 (Guaranteed by the Government of India) 731,720,000 and 40 Installments of JPY 731,707,000 each . 165 PARTICULARS Terms of Repayment As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (v) Japan International Cooperation Agency Repayment on half yearly basis 82,031.64 79,733.91 (JICA)-II starting from 20.03.2024 to - - Less: Current Maturity 20.03.2044 in 1 installment of JPY 82,031.64 79,733.91 (Guaranteed by the Government of India) 731,720,000 and 40 Installments of JPY 731,707,000 each . (vi) European Investment Bank (EIB) Tranche I - Repayment on 1,43,091.20 1,43,091.20 Less: Current Maturity half yearly basis starting from - - (Guaranteed by the Government of India) 26.09.2019 to 26.03.2035 in 32 1,43,091.20 1,43,091.20 installments of US$ 662,000 each . Tranche II - Repayment on half yearly basis starting from 15.07.2020 to 15.07.2036 in 32 installments of US$ 1,999636.36 each and 1 installment of US$ 1,999,636.48 . Tranche III - Repayment on half yearly basis starting from 16.02.2021 to 15.08.2036 in 32 installments of US$ 4,005,375 each . (vii) Government of India Repayment on half yearly basis 25,416.00 26,200.05 Against International Development starting from 15.10.2010 to 782.03 782.09 Agency (IDA) - Second Renewable Energy 15.04.2035 in 20 installments 24,633.97 25,417.96 Project (INR Loan) of US$ 625,000 each and 30 Less: Current Maturity installments of US$ 1,250,000 each payable in INR. Total 14,39,471.76 12,63,109.93 Foot Notes: All foreign currency borrowings from various multilateral / bilateral agencies (hedged) viz. ADB, IBRD, NIB, KfW, AFD,JICA and EIB have been converted into INR loan by way of plain vanilla swap transaction /currency, interest rate swap / principal only swap etc. entered into with various banks with whom IREDA has signed International Swaps and Derivative Association (ISDA) Master Agreement. These swap/derivative transactions have been entered into with the participating bank for a different maturity period for each transaction which is shorter from the maturity period of the loan. The hedging of the foreign currency loan has been carried out at various intervals and in multiple tranches of drawl against the lines of credit. Due to SWAP / hedging of foreign currency loans, in addition to the interest cost, these loans carry, hedging/derivative cost, commitment fee, government guarantee fee and other financial charges and due to multiplicity of the tranches of drawl against the line of credit , the applicable rate of interest on these lines of credit has not been disclosed above. 166 NOTE-‘5’ OTHER LONG TERM LIABILITIES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Trade Payable - - (b) IREDA-National Clean Energy Fund (NCEF) 24,923.68 23,100.49 (c) GOI Fully Service Bonds (Refer Note 24(22)) 1,64,000.00 1,64,000.00 (i) 7.85% GOI Bonds - Rs. 8,10,00,00,000 - Redeemable at Par on 06.03.2027 (ii) 7.60% GOI Bonds - Rs. 2,20,00,00,000 - Redeemable at Par on 23.02.2027 (iii) 7.22% GOI Bonds - Rs. 6,10,00,00,000 - Redeemable at Par on 06.02.2027 (d) Others 1,470.91 584.94 24% Share in MP Wind Farms 2.03 6.32 Total 1,90,396.63 1,87,691.75 NOTE-‘6’ LONG TERM PROVISIONS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Provision for Employees’ Benefits 1,276.63 1,141.79 (b) Others Provision for Standard Assets 5,526.85 4,486.41 24% Share in MP Wind Farms 4.19 4.55 Total 6,807.67 5,632.74 NOTE-‘7’ SHORT TERM BORROWING PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (i) Vijaya Bank - - (ii) Union Bank of India - - (iii) Bank of India - - 24% Share in MP Wind Farms 0.06 - Total 0.06 - 167 NOTE-‘8’ TRADE PAYABLE PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Trade Payable 13,868.41 13,776.82 24% Share in MP Wind Farms 0.12 1.62 Total 13,868.53 13,778.44 NOTE-‘9’ OTHER CURRENT LIABILITIES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Current Maturity of Long Term Debts 56,568.82 41,773.37 (b) Interest accrued but not due on borrowings 27,583.82 20,217.61 (c) Others Payable Provident Fund Payable 37.39 28.94 MNRE Programme Funds 944.85 944.85 MNRE Co Generation Specific Grant 30.83 28.90 National Hydrogen Energy Board 5.24 4.95 MNRE GBI Fund 12,097.54 61,493.82 Roof Top and other Small Scale Solar Project 3,961.73 6,223.56 MNRE Capital Subsidy For Channel Patners 6,081.09 5,892.11 MNRE UNDP Funds 695.41 708.33 MNRE SWHS 341.32 326.75 Interest on MIBOR Deposit payable to MNRE (Refer Note No. 24(22)) 1,206.99 864.97 Unclaimed Bond Interest 21.52 13.39 Other Liabilities 1,715.98 401.18 24% Share in MP Wind Farms 2.96 1.41 Total 1,11,295.50 1,38,924.13 168 NOTE-‘10’ SHORT TERM PROVISIONS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Provision for Employees’ Benefits 78.50 69.08 (b) Others Provision Income-tax (Net) - 93.44 Proposed Dividend 2,183.50 2,550.06 Corporate Dividend Tax 444.51 519.14 Provision for Standard Assets (Floating provision) 5,733.43 5,014.23 Provision for Corporate Social Responsibility Fund 2,053.77 1,381.30 Other Provisions 972.97 668.88 24% Share in MP Wind Farms 1.52 3.09 Total 11,468.21 10,299.23 169 170 NOTE-11 FIXED ASSETS ( Rs. / Lakhs ) Particulars GROSS BLOCK DEPRECIATION NET BLOCK Op. Bal. as at Additions Disposals Adjustments As at Op. Bal. as at For the year Disposals Adjustments As at As at As at 01.04.17 31.03.18 01.04.17 31.03.18 31.03.18 31.03.17 (i) Tangible Assets Land 24% Share in MP Wind Farms 0.66 - - - 0.66 - - - - - 0.66 0.66 Buildings-Residential 41.43 - - - 41.43 32.68 1.44 - - 34.13 7.30 8.75 Leasehold Buildings-Office Leasehold-IHC 439.57 - - - 439.57 267.22 20.71 - - 287.93 151.64 172.34 Leasehold-AKB 4,227.58 - - - 4,227.58 2,117.47 227.87 - - 2,345.34 1,882.24 2,110.10 Office Space at Chennai 156.68 - - - 156.68 26.75 12.34 - - 39.09 117.59 129.93 Furniture and Fittings 327.91 5.53 - - 333.43 253.00 21.86 - - 274.86 58.57 74.91 24% Share in MP Wind Farms 0.71 - - - 0.71 0.64 0.02 - - 0.66 0.05 0.06 Vehicles 74.39 - - - 74.39 35.14 12.31 - - 47.44 26.94 39.25 24% Share in MP Wind Farms 4.30 - -3.03 - 1.27 3.95 0.18 -2.93 - 1.20 0.06 0.35 Office Equipments 322.52 4.33 - - 326.85 298.38 5.59 - - 303.97 22.89 24.14 24% Share in MP Wind Farms 0.19 - - - 0.19 0.19 - - - 0.19 0.00 0.00 Computers 538.38 28.51 -1.39 - 565.50 462.16 48.94 -1.32 - 509.78 55.72 76.22 24% Share in MP Wind Farms 0.41 - - - 0.41 0.40 0.01 - - 0.41 0.00 0.01 Library 18.58 - - - 18.58 18.58 - - - 18.58 - - 24% Share in MP Wind Farms - - - - - - - - Electrical Equipments - - - - - - - - 24% Share in MP Wind Farms 0.77 - - - 0.77 0.52 0.08 - - 0.60 0.17 0.25 Wind Electricity Generators - - - - - - - - 24% Share in MP Wind Farms 25.32 - -25.32 - - 23.35 - -23.35 - - - 1.97 Sub Total (A1) 6,179.40 38.37 -29.74 - 6,188.03 3,540.44 351.34 -27.59 - 3,864.19 2,323.84 2,638.96 Solar Plant Building 2,096.36 123.01 - - 2,219.37 37.84 126.15 - - 163.98 2,055.39 2,058.53 Plant & Equipment 27,302.13 1,601.99 - - 28,904.12 267.58 1,642.89 - - 1,910.47 26,993.65 27,034.55 Sub Total (A2) 29,398.49 1,725.00 - - 31,123.49 305.42 1,769.04 - - 2,074.46 29,049.03 29,093.07 Total A (A1 +A2) 35,577.89 1,763.37 -29.74 - 37,311.52 3,845.86 2,120.38 -27.59 - 5,938.64 31,372.87 31,732.03 Previous year 6,140.83 29,542.29 -105.23 - 35,577.89 3,226.61 717.25 -98.00 - 3,845.86 31,732.03 2,914.23 (ii) Intangible Assets Internally Generated - - - - - - - - - - - - Purchased Software 155.70 16.26 - - 171.96 134.03 12.72 - - 146.75 25.21 21.68 Total B 155.70 16.26 - - 171.96 134.03 12.72 - - 146.75 25.21 21.68 Previous year 145.86 9.84 - - 155.70 116.94 17.09 - - 134.03 21.68 28.92 Total A+B 35,733.59 1,779.62 -29.74 - 37,483.48 3,979.88 2,133.10 -27.59 - 6,085.39 31,398.08 31,753.71 Previous year 6,286.70 29,552.13 -105.23 - 35,733.59 3,343.54 734.34 -98.00 - 3,979.88 31,753.71 2,943.15 (iii) Capital Work In Progress Data Centre - 303.19 - - 303.19 - - - - - 303.19 - Total C - 303.19 - - 303.19 - - - - - 303.19 - Previous year 0.08 20.37 - -20.45 - - - - - - - 0.08 (iv) Intangible Assets under development Software under Development 21.40 0.45 - -16.26 5.59 - - - - - 5.59 21.40 Total D 21.40 0.45 - -16.26 5.59 - - - - - 5.59 21.40 Previous year 5.59 25.65 - -9.84 21.40 - - - - - 21.40 5.59 (v) Capital Work in Progress 50 MW Solar Project - - - - - - - - - - - - Total E - - - - - - - - - - - - Previous year 1,403.20 29,482.37 - -30,885.57 - - - - - - - 1,403.20 Total A+B+C+D+E 35,754.99 2,083.26 -29.74 -16.26 37,792.26 3,979.88 2,133.10 -27.59 - 6,085.39 31,706.86 31,775.11 Previous year 7,695.56 59,080.52 -105.23 -30,915.86 35,754.99 3,343.54 734.34 -98.00 - 3,979.88 31,775.11 4,352.02 NOTE-‘12’ NON CURRENT INVESTMENT PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (i) Trade Investment - - (ii) Other Investments Investment in Equity Instruments (unquoted)(at cost) - - Less: Provision for diminution in the value of Investment - - Total - - 171 NOTE-‘13’ LONG TERM LOANS & ADVANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Capital Advances - For purchase of Office & Residence premises (including parking) at NBCC 9,923.77 7,277.43 Complex . (b) Security Deposits 20.45 15.34 (c) - Loan & Advances to Related Parties - Loans 3.07 - Advances (Not bearing interest) - - (d) Term Loans - Onlending 12,64,302.17 10,48,901.19 - Refinancing (N.C.E.F.-I) 2,154.00 3,355.25 - Refinancing (N.C.E.F.-II) 10,872.70 10,568.11 Less: Allowance for bad and doubtful Loans 34,879.09 26,791.22 12,42,449.78 10,36,033.33 (e) Loans to Employees 273.33 305.79 (f) Staff Advances (Not bearing interest) 5.17 0.74 (g) Others 0.20 0.21 Total Loans & Advances of IREDA 12,52,675.78 10,43,632.85 24% Share in MP Wind Farms 0.69 0.69 Total Loans & Advances 12,52,676.47 10,43,633.55 Sub-classification of above : Secured (Considered good) - Term Loans 11,58,654.15 9,56,657.35 - Term Loans Refinancing (N.C.E.F.-I) - 442.25 - Term Loans Refinancing (N.C.E.F.-II) 9,046.55 9,220.37 - Loans to Employees including related parties 276.40 305.79 - Term Loans Secured by Bank Guarantee 298.20 379.40 Secured (Considered doubtful) - Term Loans (Substandard, Doubtful & Loss) 99,736.96 81,757.01 Unsecured (Considered good) - Term Loans 5,612.86 10,107.43 - Term Loans Refinancing (N.C.E.F.-I) 2,154.00 2,913.00 - Term Loans Refinancing (N.C.E.F.-II) 1,826.15 1,347.74 - Capital Advances 9,923.77 7,277.43 - Security Deposits 20.45 15.34 - Staff Advances (Not bearing interest) 5.17 0.74 - Others 0.20 0.21 24% Share in MP Wind Farms 0.69 0.69 12,87,555.56 10,70,424.76 Less: Allowance for bad and doubtful/Substandard Loans 34,879.09 26,791.22 GRAND TOTAL 12,52,676.47 10,43,633.55 - Due from Directors of the Company. 0.22 0.64 - Due from other officers of the Company i.e. Company Secretary as per the 8.45 10.30 Companies Act, 2013 172 NOTE-‘14’ OTHER NON CURRENT ASSETS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) OTHER BANK BALANCES (Refer Note No. 16) Foreign Currency Deposits - Dollar Deposit More than 12 months original maturity 4,962.39 6,642.23 (earmarked against bank loan from BOB) Interest Accrued but not due on Loans 169.75 157.18 Advance Tax & Other Tax Recoverable (Net) 13,879.46 13,908.24 Others - GOI Fully Service Bonds Money Receivable (Refer Note No. 24(22)) 1,63,879.20 1,38,075.91 - FDRs - Borrowers 1,470.91 584.94 - Miscellaneous Expenses not written off (Discount on Masala Bond) 750.97 - Total 1,85,112.68 1,59,368.51 NOTE-‘15’ TRADE RECEIVABLE PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (A) Outstanding for a period exceeding six months from the date they are due for payment (i) Secured, Considered good - - (ii) Unsecured, Considered good - - (iii) Doubtful - - Less: Allowance for bad and doubtful debts - - Sub Total - A - - (B) Others (i) Secured, Considered good - - (ii) Unsecured, Considered good 2,191.62 239.62 (iii) Doubtful - - Less: Allowance for bad and doubtful debts - - Sub Total - B 2,191.62 239.62 24% Share in MP Wind Farms (C ) 4.02 7.78 Total (A+B+C) 2,195.64 247.40 173 NOTE-‘16’ CASH AND BANK BALANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A) CASH AND CASH EQUIVALENTS (a) Balances with Banks A) In Current Account with Schedule Banks - IREDA i) In Indian Branches 60,559.43 46,168.42 ii) In Foreign Branches In USD 20,162.40 38,904.51 In Euro - 14,630.13 In JPY - 17,461.88 B) In Deposit Account i) INR-Short term Deposit - IREDA 1,05,591.00 88,973.11 (Includes deposits of Rs. 77,500.00 Lakhs having original maturity of more than 90 days .) (b) Cheques Under Collection/DD In hand - 0.50 (c) In Overdraft Accounts 6.25 0.24 (d) Postage Imprest 0.50 0.25 Sub Total 1,86,319.57 2,06,139.02 B) OTHER BANK BALANCES (a) Balances with Banks A) In Current Account - IREDA 21.52 13.39 - MNRE 2.15 2.15 - MNRE GOI Fully Service Bond Bank a/c 350.00 350.00 B) In Saving Account - UNDP 0.05 0.05 - MNRE UNDP Account 695.41 708.33 - National Hydrogen Energy Board 0.06 0.06 - IREDA (MNRE GBI Fund) 2,759.54 48,291.32 - Rooftop & Other Small Solar Power Plant 3,961.73 6,223.56 - MNRE Capital Subsidy for Channel Partners 6,081.09 5,892.11 - IREDA National Clean Energy Fund 292.70 2,545.10 - Association of Renewable Energy Agencies of State-MNRE Share 0.01 0.01 174 PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) C) In Deposit Account - IREDA 31.94 29.78 - MNRE 17.25 17.25 - MNRE Implementation of SWHS 341.32 326.75 - STD - National Hydrogen Energy Board 5.18 4.89 - STD - IREDA Co Generation 31.17 29.25 - IREDA National Clean Energy Fund 18,248.60 15,360.69 - MNRE GOI Fully Service Bond Bank a/c 977.79 26,439.06 - IREDA (MNRE GBI Fund) 10,000.00 - b) Foreign Currency Deposits - Dollar Deposit Less than 12 months original maturity 1,679.84 1,523.52 More than 12 months original maturity 4,962.39 6,642.23 50,459.76 1,14,399.49 Less: Amount disclosed under non-current assets (Refer Note No. 14) (4,962.39) (6,642.23) Sub Total 45,497.37 1,07,757.26 24% Share in MP Wind Farms 56.35 54.03 Total 2,31,873.29 3,13,950.31 175 NOTE-‘17’ SHORT TERM LOANS & ADVANCES PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. Total Loans & Advances (a) Security Deposits 0.92 307.72 (b) Loan & Advances to Related Parties - Loans 2.40 - - Advances (Not bearing interest) 1.05 - (c) Term Loans - Onlending 3,02,878.20 2,96,213.61 - Refinancing (N.C.E.F.-I) 759.00 820.00 - Refinancing (N.C.E.F.-II) 1,072.95 608.17 Less: Allowance for bad and doubtful Loans - - 3,04,710.14 2,97,641.78 (d) Loans to Employees 55.43 63.37 (e) Staff Advances (Not bearing interest) 31.93 42.57 (f) Others 2,651.15 78.43 24% Share in MP Wind Farms 0.53 - Sub Total - A 3,07,453.55 2,98,133.87 B. Total Loans to constituents of MNRE (a) Loans to constituents of MNRE 254.77 254.77 (b) Interest Accrued and due on MNRE Loans 664.69 664.69 Sub Total - B 919.46 919.46 Total (A+B) 3,08,373.01 2,99,052.33 Sub-classification of above : IREDA Secured (Considered good) - Term Loans 2,70,819.96 1,18,394.66 - Term Loans Refinancing (N.C.E.F.-I) - 61.00 - Term Loans Refinancing (N.C.E.F.-II) 437.71 444.81 - Loans to Employees including related parties 57.83 63.37 - Term Loans Secured by Bank Guarantee 135.50 188.79 Unsecured (Considered good) - Term Loans 31,922.73 1,77,630.16 - Term Loans Refinancing (N.C.E.F.-I) 759.00 759.00 - Term Loans Refinancing (N.C.E.F.-II) 635.23 163.36 - Security Deposits 0.92 307.72 - Staff Advances (Not bearing interest) including related parties 32.98 42.57 - Others 2,651.15 78.43 24% Share in MP Wind Farms 0.53 - 3,07,453.55 2,98,133.87 MNRE Doubtful - Term Loans to Constituents of MNRE 919.46 919.46 GRAND TOTAL 3,08,373.01 2,99,052.33 - Due from Directors of the Company. 0.43 2.04 - Due from other officers of the Company i.e. Company Secretary as per the Companies Act, 2013 3.45 3.17 176 Note-‘18’ OTHER CURRENT ASSETS PARTICULARS As at 31.03.2018 As at 31.03.2017 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Interest accrued but not due on deposits with banks 1,306.94 162.89 (b) Interest Accrued and due on Loans - Interest Accrued and due 10,906.68 15,292.44 - Liquidated Damaged Accrued and due 123.04 159.41 (c) Interest Accrued but not due on Loans 748.00 1,123.56 (d) Advance Tax & Other Tax Recoverable (Net) 2,553.56 - (e) Others 204.20 245.50 24% Share in MP Wind Farms 1.64 1.06 Total 15,844.05 16,985.86 NOTE-‘19’ REVENUE FROM OPERATIONS PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. INTEREST (i) Interest on Lending Operations 1,55,333.36 1,34,207.97 Less : Rebate on Prompt Payment 495.47 543.80 1,54,837.88 1,33,664.18 (ii) Differential Interest 3,976.13 1,483.25 Less: Service Tax / G.S.T. 599.67 193.47 3,376.46 1,289.78 (iii) Interest on Deposits with Banks -Short Term Deposit-INR 9,809.10 5,075.77 -Short Term Deposit-Foreign Currency 160.99 123.98 9,970.08 5,199.75 Total “INTEREST” (A= i+ii+iii) 1,68,184.43 1,40,153.71 B. OTHER FINANCIAL SERVICES (a) Business Service Fees Front end Fee 3,641.79 3,992.46 Less : Service Tax / G.S.T 499.59 505.60 3,142.20 3,486.86 177 PARTICULARS For the year For the year ended 31.03.18 ended 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Application Fee on Loans 1,126.21 991.37 Less : Service Tax / G.S.T 165.85 128.95 960.36 862.42 Application Fee - Accelerated Depreciation 1.42 0.12 Less : Service Tax / G.S.T 0.22 0.02 1.20 0.10 Application Fee - Generation Based Incentive 2,259.36 2,667.52 Less : Service Tax / G.S.T 301.26 345.02 1,958.10 2,322.50 Total Business Service Fees (a) 6,061.86 6,671.88 (b) Business Service Charges Service Charges - UNDP Programme Fund 7.45 10.43 Less : Service Tax / G.S.T 1.14 1.36 6.31 9.07 Service Charges - Generation Based Incentive 760.44 453.94 Less : Service Tax / G.S.T 114.19 59.19 646.26 394.75 Service Charges - Biogas Feed Fertilizer Plant - 0.34 Less : Service Tax / G.S.T - 0.04 - 0.30 Service Charges - Roof Top and Other Small Solar Power Project 263.55 331.71 Less : Service Tax / G.S.T 38.76 43.12 224.79 288.58 Service Charges - MNRE Capital Subsidy for CPs, SNAs and PA 1.60 114.10 Less : Service Tax / G.S.T 0.21 14.84 1.39 99.26 Total Business Service Charges (b) 878.75 791.95 (c) Amount received in respect of Bad Debts written off 610.02 80.24 (d) Gurantee Commission 205.99 - Less : Service Tax / G.S.T 31.42 - 174.56 - Total “OTHER FINANCIAL SERVICES” (B=a+b+c+d) 7,725.19 7,544.07 C. SOLAR OPERATIONS Revenue from Solar Plant Operations 2,003.37 229.02 D. 24% Share in MP Wind Farms 8.38 23.26 Total (A+B+C+D) 1,77,921.37 1,47,950.05 178 NOTE-‘20’ OTHER INCOME PARTICULARS For the year ended For the year ended 31.03.18 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Interest on Staff Loan 28.65 26.77 Interest on Income Tax Refund - 154.85 Provision Written Back 43.88 - Profit on Sale of Fixed Assets - 5.16 Rental Income 6.15 4.00 Miscellaneous income - Transferred from Capital Grant - 2.16 - Others 10.43 47.42 24% Share in MP Wind Farms 18.35 7.53 Total 107.46 247.88 NOTE-‘21’ EMPLOYEE BENEFIT EXPENSES PARTICULARS For the year ended For the year ended 31.03.18 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) (a) Salaries, Wages and Other Amenities 3,699.51 2,332.64 (b) Contribution to Provident and Other Funds - Contribution to Provident Fund 166.19 129.95 - Provident Fund Administrative Charges 2.29 1.96 - Contribution to Benevolent Fund 0.84 0.76 - Contribution to Superannuation fund 126.03 97.08 - Contribution to Gratuity Fund 185.55 61.21 (c) Staff Welfare Expenses 240.30 167.62 (d) Human Resource Development 24.15 15.95 24% Share in MP Wind Farms 17.35 18.36 Total 4,462.23 2,825.54 179 NOTE-‘22’ FINANCE COST PARTICULARS For the year ended For the year ended 31.03.18 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) A. Interest Expense Interest on Borrowings - on Bonds 46,686.81 34,526.18 - on Loans 44,765.73 40,204.50 Sub Total (A) 91,452.54 74,730.68 B. Other Borrowing Costs (i) Commitment fee 357.04 278.66 (ii) Guarantee Fee 8,105.93 6,006.51 Sub Total (B) 8,462.97 6,285.17 C. Others (i) Bond Trusteeship fee 2.60 0.50 (ii) Bank Charges 1.63 2.17 (iii) Bond Issue Expenses 264.70 294.54 (iv) IPO Issue Expenses 27.99 - (v) Front end fees 119.41 - (vi) Management Fee (KFW) 37.30 - (vii) Discount on Bonds 78.59 - (viii) Withholding Tax 346.59 - (ix) Others 15.33 15.41 Sub Total (C) 894.16 312.61 Sub Total (A+B+C) 1,00,809.67 81,328.47 Add : Amortisation of Foreign Currency Translations Loss on long 2,189.61 - term monetary items Less : Net Gain on Foreign Currency Transactions 476.79 Less : Net Gain on Foreign Currency Translations and Transactions - 8,721.69 Less : Interest Capitalised - 12.92 24% Share in MP Wind Farms 0.01 0.23 Total 1,02,522.50 72,594.08 180 NOTE-‘23’ OTHER EXPENSES PARTICULARS For the year ended For the year ended 31.03.18 31.03.17 ( Rs. / Lakhs ) ( Rs. / Lakhs ) Electricity and Water Charges 75.38 78.27 Office rent 10.41 11.91 Office Maintenance 52.88 54.99 Repairs and Maintenance-Others 128.20 123.16 Insurance 7.18 7.09 Rates and Taxes 161.97 126.37 Business Promotion 367.76 218.17 Travelling and Conveyance 272.32 169.51 Information and Dissemination 94.02 97.64 Payment to Auditor 46.06 17.80 Legal and Professional 379.73 232.56 Newspapers and Periodicals 1.81 1.18 Postage, Telegram and Telephone 33.64 28.92 Printing and Stationery 38.68 58.49 Recruitment Expenses 5.71 10.97 Credit Rating Expenses - Surveillance included 153.44 91.61 Filing Fees 0.46 0.36 Corporate Social Responsibility 1,033.03 750.74 Director Sitting Fees 6.00 - Loss on Sale of Assets 0.03 0.39 Sponsorship 2.00 1.00 Interest on Service Tax 3.44 15.46 Discount on Sale of Power (Solar Project) 44.65 - Miscellaneous Expenses 52.95 47.02 24% Share in MP Wind Farms in project expenses 0.47 3.74 24% Share in MP Wind Farms in other expenses 6.93 8.72 Total 2,979.14 2,156.08 181 NOTE ‘24’ NOTES ON ACCOUNTS 1. (a) The company is registered with the Reserve Bank of India (RBI) as a Non- Banking Financial Company (NBFC) vide order dated 10.02.1998. As per notification No. DNBS (PD).CC.No. 12/02.01/99-2000 dated 13.01.2000 of RBI, Government companies as defined under Section 2(45) of The Companies Act, 2013 have been exempted from applicability of the provisions of Reserve Bank of India Act, 1934 relating to maintenance of liquid assets and creating of Reserve funds and the Directions relating to acceptance of public deposits and prudential norms. The said notification is also applicable to IREDA, being Govt. Company conforming to Section 2(45) of The Companies Act, 2013. Further, as per para No. 1(3) (iv) of RBI’s Master Circular No. DNBS(PD) CC No. 333/03.02.001/2013- 14 dated July 1, 2013, IREDA being a Government Company as defined under section 2(45) of The Companies Act, 2013 continues to be exempted from the applicability of non-banking financial (Non Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007. Moreover in view of the non-applicability of the provisions of Section 45(I) C of the RBI Act, 1934 regarding creation of Reserve Fund, the Reserve Fund is not created. In terms of the exemption vide notification No. DNBS(PD).CC.No. 12/02.01/99-2000 dated 13.01.2000 as explained above, the Board of Directors of IREDA approved company’s prudential norms relating to income recognition , assets classification and provisioning including restructuring / reschedulement of borrower’s account which are being followed consistently. Some important features of these prudential norms are given in significant accounting policy No. 2 (v). These norms have been approved by the Board of Directors in terms of the Articles of Association of the Company. (b) MNRE has communicated approval for amendment in the article to cover the asset classification / provisioning for restructured / rescheduled accounts. After the approval by shareholders, the articles have been suitably amended. (c) M/s M.P. Wind Farms Ltd. (MPWL) is a joint sector company in collaboration with IREDA, M.P.Urja Vikas Nigam Limited and Consolidated Energy Consultants Pvt. Ltd., a private Ltd. Co., with share holding of 24%, 25% and 49.5% respectively and balance shares held by Others. The paid up capital of MPWL stood at Rs. 70.00 Lakhs which includes IREDA’s initial subscription of Rs. 12.00 Lakhs and bonus shares of Rs. 4.80 Lakhs against the authorized share capital of Rs. 100.00 Lakhs. In accordance with The Companies Act 2013 and accounting standard AS-21 on consolidated financial statement read with AS-23 on accounting for investment in associates and AS-27 on financial reporting of interest in joint ventures, the consolidated financial statement is prepared based on the audited annual accounts provided by M/s M.P. Wind Farms Ltd. 2. a) In addition to the security held by way of assets etc , of the borrowing entities , the Company held FDRs & Guarantees issued by Banks amounting to Rs. 2,599.33 Lakhs and Rs. 16,678.68 Lakhs (Previous year Rs. 1,793.00 Lakhs and Rs. 15,110.28 Lakhs ) respectively as additional securities for loans granted. b) While making provision for Non Performing Assets, the value of security and provision for doubtful cases has been derived from the balance sheet of the borrower(s) by applying the depreciation as per rates prescribed under Schedule II of the Companies Act, 2013. However, if the balance sheet of the borrower(s) is older than 5 years from the financial year for which the shortfall is worked out, the same is ignored. c) The provision for Standard Assets as per the statutory requirement of 0.40% (Previous year 0.35%) amounting to Rs. 5,526.85 Lakhs (Previous year: Rs 4,486.41 Lakhs ) has been shown under Note No. 6 – Long Term Provisions, while Floating provision of Rs 5,733.43 Lakhs (Previous year: Rs. 5,014.23 Lakhs) has been shown under Note No. 10 – Short Term Provisions. 182 3. Details of Contingent Liabilities and Commitments As per Accounting Standard (AS) – 29 on Provisions, Contingent Liabilities and Contingent Assets, the movement in Provisions as on 31st March , 2018 are disclosed as under:- a) Details of Provisions (Rupees in Lakhs) Sl. Nature of the Opening balance at Additions made Payment / Closing balance at No. liability for which the beginning of the during the year adjustment made the end of the year provision is made year during the year 1 Standard assets 9,500.64 1,759.65 - 11,260.28 including Floating (5,606.57) (3,894.07) (-) (9,500.64) 2 Income tax 67,370.39 10,519.00 - 77,889.39 (51,812.28) (15,558.11) (-) (67,370.39) 3 Proposed dividend 2,550.06 2,183.50 2,550.06 2,183.50 (-) (2,550.06) (-) (2,550.06) 4 Dividend tax 519.14 444.51 519.14 441.51 (-) (519.14) (-) (519.14) 5 Leave encashment 401.55 160.18 356.04 205.69 (318.05) (106.39) (22.90) (401.55) 6 Gratuity 165.68 185.55 12.26 338.97 (123.09) (61.21) (18.63) (165.68) 7 Post retirement 404.11 132.47 19.25 517.33 medical benefit (355.15) (51.63) (2.67) (404.11) 8 Sick leave 230.15 57.35 5.13 282.37 (212.32) (33.11) (15.28) (230.15) 9 Baggage Allowance 9.39 1.39 - 10.78 (7.82) (1.57) (-) (9.39) 10 Corporate Social 1,381.30 1,033.03 360.55 2,053.77 Responsibility (1,091.31) (750.74) (460.76) (1,381.30) Previous year figures shown within brackets. 183 b) Details of Contingent Liabilities & Capital Commitments (Rupees in Lakhs) Particulars As at 31.03.2018 As at 31.03.2017 Contingent Liabilities The contingent liability is in respect of cases for the Assessment Years 2010-11, 10,434.78 7,444.48 2011-12, 2012-13, 2013-14, 2014-15 and 2015-16) which are pending with CIT(A) (Previous year – liability in respect of Assessment Years 2010-11, 2011-12, 2012-13, 2013-14 and 2014-15). The cases from AY 1998-99 to 2009-10 have been referred back by ITAT vide order dated 21.11.14 for fresh assessments and are in progress with the Assessing Officer. Bank Guarantee issued in favour of BSE ltd. as a security for receiving subscription of - 1,416.00 Public issue of Tax Free Bonds by Indusind Bank and secured by way of Lien on Fixed Deposit Receipts (FDR) . Guarantee issued under IREDA’s “Guarantee Assistance to RE Suppliers / 1,000.00 - Manufacturers / EPC Contractors” Scheme for Bid Security . Guarantee- Unconditional and recoverable partial credit guarantee under IREDA’s 9,000.00 - Credit Enhancement Scheme. Total of Contingent Liabilities 20,434.78 8,860.48 COMMITMENTS Estimated value of contract to be executed on Capital Account for 50MW Solar - 1,500.00 Project Estimated value of capital contract in reference to the acquisition of new office space 3,496.15 6,142.49 at NBCC Plaza (inclusive of residential, commercial and parking space) . Letter of comfort issued and outstanding 58,099.92 67,969.21 In case of JV – Nil 4. SOLAR POWER PROJECT The company entered into an MOU with Solar Energy Corporation of India (SECI) in the year 2014‐15 for implementation of 50 MW Solar Project of IREDA situated at Kasargod, in the state of Kerala, has been capitalized in the books in the FY 2016-17 at Rs. 29,398.48 Lakhs . In turn, a tripartite agreement has been entered alongwith SECI with Jakson Engineer Limited (Jakson) for designing, engineering, supply, construction, erection, testing, commissioning of Solar PV Power Plant at a fixed price of Rs. 26,929.25 Lakhs plus 8% management charges (including Taxes) of Rs 2,456.32 Lakhs payable to SECI and Rs. 12.92 Lakhs being interest capitalized. Further, an amount of Rs. 1,500.00 Lakhs (excluding taxes) which was paid as advance towards evacuation charges to Solar Park Developer has been capitalized during the year. The Solar 184 Project has been set up on Leasehold land, for which no lease rentals are payable as of date. The execution of leave agreement with respect to the land is still pending as at the year end. As on 13 September 2017, the whole 50 MW solar plant has been synchronized with the grid and started generating power and feeding the same to grid. The PPA has been signed between IREDA and Kerala State Electricity Board Limited (KSEBL) on 31.03.2017 @ Rs. 4.95 which was subject to approval of Kerala State Electricity Regulatory Commission (KSERC). Accordingly IREDA, filed a petition for approval of the Power Purchase Agreement with KSERC, which in its interim order dated 14.02.18 has approved an interim tariff of Rs. 3.90 per unit. Accordingly, the generation income has been accounted for @ Rs. 3.90 per unit till final approval of tariff by KERC. The Plant is expected to be handed over by the developer by September 2018. The Operation and Maintenance of the plant has further been contracted by the developer , which shall accrue from the handing over of the project . Thus no operation expenses have been provided for in the current year with respect to the Solar Plant. 5. Conveyance deeds in respect of leasehold buildings - a residential flat costing Rs 41.43 Lakhs (Previous year: Rs. 41.43 Lakhs), office premises-IHC costing Rs. 439.57 Lakhs (Previous year: Rs. 439.57 Lakhs ) and office premises-AKB costing Rs 4,227.58 Lakhs (Previous year : Rs. 4,227.58 Lakhs) are yet to be executed in favor of the Company. The cost includes proportionate value of land which has not been separately determined and accounted for. As such, depreciation has been charged on composite cost at the rates prescribed in Schedule II to The Companies Act, 2013. 6. The property tax demand raised upto 31 March 2018 in respect of all the residential and office premises have been paid. The property tax in respect of office building at India Habitat Centre has been paid as per the demand of India Habitat Centre , which was based on cost of the building. Municipal Corporation of Delhi has raised an issue with India Habitat Centre to include license fee received for the facilities area for the purpose of calculating ratable value. This matter is now pending with the Hon’ble Delhi High Court. In case the Hon’ble Delhi High Court decides against the company, the liability on account of municipal tax will have to be reworked which is not ascertainable at this stage. 7. The amount payable to enterprises falling under The Micro, Small and Medium Enterprises Development Act, 2006 is Rs. Nil (Previous year : Rs. Nil). In case of JV – No records of the SSI units have been maintained separately and hence amount outstanding to small scale undertakings for more than 30 days could not be ascertained .The Company has not received information from Vendors regarding their status under Micro , Small and Medium Enterprises Development Act 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this act have not been given . 8. In pursuance of the approval of the Cabinet Committee on Economic Affairs (CCEA) to issue fresh equity shares of Rs.10 each to the public on book building basis through the IPO, the authorized share capital of the Company was restructured by way of sub-dividing the nominal value of equity shares from Rs. 1000/- (Rupees One Thousand only) to Rs. 10 (Rupees Ten only) per equity share by the Shareholders of IREDA in the Extra-ordinary general meeting (EGM) held on November 28, 2017. 9. In terms of Section 135 of The Companies Act, 2013, IREDA is required to constitute a corporate social responsibility (CSR) Committee of the Board of Directors and the Company has to spend 2% of the average net profits of the Company’s three immediately preceding financial year calculated as per section 198 of The Companies Act 2013. Accordingly, CSR Committee of the Board of Directors consisting of 5 Directors, out of which one is an Independent Director with another being a Government Nominee Director, has been re-constituted by the Board through circular resolution dated 1st November 2017 and notified by the Board in its 297th meeting held on 11th November 2017. During the year, the Company has made a provision of Rs. 1,033.03 Lakhs (Previous year : Rs. 750.74 Lakhs) towards CSR. During the year, the following new projects, with a total outlay of Rs. 1,134.57 Lakhs (Previous year : Rs. 704.99 Lakhs) were approved to be financed by IREDA under CSR : 185 Sl. CSR Project or activity identified Outlay Implementing Agency Status -31.03.18 (Rs. / Lakhs) Promoting Healthcare, Sanitation and Drinking Water 1 Providing Dialysis unit with 2 Dialysis Machines and rest of 23.28 Directly by IREDA Completed the systems supporting the Dialysis unit at Nilanchal Education Trust in Sai Saburi Hospital, Bhubaneswar, Odisha. 2 250 LPH Water RO Vending Machine with Chiller at Baghmara, 7.90 Directly by IREDA Completed Jharkhand. 3 Donation to Health Minister’s Cancer Patient Fund. 10.00 Directly by IREDA Completed 4 250 LPH Water Vending Machine with chiller and 400 Blankets 10.12 Directly by IREDA In Progress to The Earth Saviours Foundation, NGO, Gurugram , Haryana . 5 Financial Support for knee surgery of 1 Child. 3.00 Directly by IREDA Sanction Letter Issued 6 Donation: Contribution to Swachh Bharat Kosh. 200.00 Directly by IREDA In Progress Promoting Healthcare, Sanitation , Drinking Water , Environment Sustainability, Ecological Balance and Conservation of Natural Resources 1 CSR Flagship Program IREDA-CARES (Clean Amenities 600.00 Directly by IREDA In Progress with Renewable Energy Systems) Model for providing Basic Amenities in Rural Areas. Environment Sustainability, Ecological Balance and Conservation of Natural Resources 1 200 Solar PV Street Lighting Systems in Rural areas of Pali 44.56 Rajasthan Electronics Completed Constituency , Rajasthan. and Instruments Limited 2 45 Solar PV Street Lighting Systems in Sainik School Chittorgarh, 10.02 Rajasthan Electronics Completed Rajasthan. and Instruments Limited 3 75 kWp Grid Connected Rooftop Solar PV System at 23.44 Bluearth Solar Pvt. Ltd. In Progress Ramakrishna Mission Ashrama, Asansol. 4 75 kWp Grid Connected Rooftop Solar PV System at Garhwal 15.12 Directly by IREDA In Progress Rifles War Memorial Boys and Girls Hostel, Dehradun. 5 Implementing Rooftop Solar PV System at SAATHI 4.17 Directly by IREDA In Progress Vridhashram (Old Age Home), New Delhi. 186 6 100 Solar PV Street Lighting Systems in Rural areas of Sitamarhi 16.70 Uttar Pradesh Small In Progress Parliamentary Constituency, Bihar . Industries Corporation 7 100 Solar PV Street Lighting Systems in Rural areas of Koderma 16.70 Uttar Pradesh Small In Progress Parliamentary Constituency, Jharkhand . Industries Corporation 8 200 Solar PV Street Lighting Systems in Rural areas of Sirsa 33.39 Uttar Pradesh Small In Progress Parliamentary Constituency, Haryana. Industries Corporation 9 100 Solar PV Street Lighting Systems in Rural areas of Bijnor 16.70 Uttar Pradesh Small In Progress Parliamentary Constituency, U.P. Industries Corporation 10 45 Solar PV Street Lighting Systems in 2 non grid connected 10.02 Central Electronics In Progress villages in Almora , U.P. Limited 11 150 Solar Street Lights in 5 identified villages of SoS Children’s 33.42 Rajasthan Electronics In Progress Villages of India. and Instruments Limited 12 Roof Top Solar PV System at Girls Sr. Sec. School cum Hostel, 4.17 Directly By IREDA In Progress Jhadol Block , Udaipur District , Rajasthan . Promoting Education 1 Providing 150 Bench Desk, Sports & Musical Items at 5 Schools 13.10 KM Foundation In Progress & Colleges in Giridih Parliamentary Constituency, Jharkhand. 2 Providing Financial Support to Community Education 10.20 Directly by IREDA In Progress Development Foundation, Ekta Vihar , New Delhi . 3 Providing 50 Yoga Mats, 1 LED TV 50”, 1 AC for setting up Yoga 2.15 Directly by IREDA Completed Room at Indraparastha Girls Sr. Sec. School, New Delhi. Rural Development 1 2 High Mast Lights in Giridih Parliamentary Constituency, 7.85 KM Foundation In Progress Jharkhand . 2 Construction of 2 football grounds in Madikkai Grama 20.20 Renewable Power Sanction Letter Panchayatha, Kasargod, Kerala. Corporation Kerala Ltd Issued Total Outlay : 1,134.57 During the year, an amount of Rs. 360.55 Lakhs (Previous Year: Rs. 460.76 Lakhs) has been paid to the implementing agencies against the CSR projects based on the progress of the projects. 187 10. As per the Board approved Foreign Exchange and Derivative Risk Management Policy of IREDA, an open exposure on foreign currency loans (40% of outstanding forex borrowing) is permissible. The open exposure as at 31.03.18 is Rs. 2,72,389.51 Lakhs (Previous year : Rs. 2,07,218.68 Lakhs ) which is 34.42% (Previous year : 26.32 % ) of outstanding forex borrowing and is within the permissible limits . Out of the said open exposure part hedging has been done for Rs. 46,196.78 Lakhs equivalent Euro 55,382,785 (Previous year: Rs. 40,022.24 Lakhs equivalent to Euro 55,382,785 ) by taking principal only swap (USD/INR) for EURO currency loan, Rs. Nil (Previous year: Rs. 74,347.15 Lakhs) by taking principal only swap (JPY/USD) for JPY currency loan. 11. EARNING PER SHARE In terms of Accounting Standard (AS) 20 on Earnings Per Share, the Earnings Per Share (Basic & Diluted) is worked out as under:- Particulars As at 31.03.2018 As at 31.03.20171 Nominal value of Equity share 10 10 (Rs. per share) Numerator 39,320.96 36,498.31 Profit after Tax as per Statement of Profit & Loss (Rs. in Lakhs) Denominator ➢ Number of equity shares 78,46,00,000 78,46,00,000 ➢ Weighted average number of Equity shares for calculating Basic and Diluted 78,46,00,000* 78,46,00,000** Earnings per share ➢ Basic & Diluted Earnings per share (Annualised) (in Rs.) 5.01 4.65 1 Due to subdivision of shares (from F.V. of Rs. 1000/- per share to Rs. 10/- per share), the previous year figures were not comparable. However the same has been re-stated at Rs. 10/- per share for making them comparable (Refer Note No. (24(8)). * weighted average (78,46,00,000 x 365/365 ) = 78,46,00,000 ** weighted average (78,46,00,000 x 365/365 ) = 78,46,00,000 12. EMPLOYEE BENEFITS The summarized position of Post-employment benefits and long term employee benefits recognized in the Statement of Profit & Loss and Balance Sheet as required in accordance with Accounting Standard – 15 (Revised) are as under:- 188 (a) Change in the present value of the obligation (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post (Funded) Encashment (Un funded) Allowance Retirement (Un funded) (Un funded) Medical Benefit (Un funded) Present value of obligation as at the 615.71 401.55 230.15 9.39 404.11 beginning (560.47) (318.05) (212.32) (7.82) (355.15) Interest cost 46.18 30.12 17.26 2.11 30.31 (44.84) (25.44) (16.99) (0.63) (28.41) Current service cost 45.96 30.97 19.01 2.21 26.86 (39.94) (48.60) (15.74) (0.62) (17.91) Past Service Cost - - - - - - - - - - Benefits paid (-)34.70 (-)356.04 (-)5.13 - (-)19.25 (-)(36.54) (-)(22.90) (-)(15.28) - (-)(2.67) Actuarial loss/(gain) on obligations 129.25 97.88 20.92 (-)2.93 75.30 (7.00) (32.35) (0.38) (0.32) (5.31) Acquisition Adjustment - 1.21 0.16 - - - - - - - Present value of obligation at the end 802.39 205.69 282.37 10.78 517.33 (615.71) (401.55) (230.15) (9.39) (404.11) Previous year figures are shown within brackets. 189 (b) Change in fair value of plan asset (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Fair value of plan assets at the beginning 450.03 - - - - (437.38) - - - - Expected return on plan assets 37.13 - - - - (34.99) - - - - Employer’s contribution 13.81 - - - - (14.02) - - - - Fund Management Charges - - - - - - - - - - Benefits paid (-)34.70 - - - - (-)(36.54) - - - - Actuarial loss/(gain) on obligations (-)2.85 - - - - (0.18) - - - - Fair value of plan asset at the end 463.43 - - - - (450.03) - - - - Previous year figures are shown within brackets . (c) Amount recognized in Balance Sheet (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Estimated present value of obligations as 802.39 205.69 282.37 10.78 517.33 at the end (615.71) (401.55) (230.15) (9.39) (404.11) Fair value of plan assets as at the end 463.43 - - - - (450.03) - - - - Net liability recognized in balance sheet (-)338.97 (-)205.69 (-)282.37 (-)10.78 (-)517.33 (-)(165.68) (-)(401.55) (-)(230.15) (-)(9.39) (-)(404.11) Previous year figures are shown within brackets . 190 (d) Expense recognized in the Statement of Profit & Loss. (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Current service cost 45.96 30.97 19.01 2.21 26.86 (39.94) (48.60) (15.74) (0.62) (17.91) Past service cost - - - - - - - - - - Interest cost 46.18 30.12 17.26 2.11 30.31 (44.84) (25.44) (16.99) (0.63) (28.41) Expected return on plan asset (-)37.13 - - - - (-)(34.99) - - - - Net actuarial (Gain)/Loss recognized 132.09 97.88 20.92 (-)2.93 75.30 (6.82) (32.35) (0.38) (0.32) (5.31) Total expenses recognized in Statement 187.10 158.97 57.19 1.39 132.47 of Profit & Loss (56.61) (106.39) (33.11) (1.57) (51.63) Previous year figures are shown within brackets. (e) Principal actuarial assumption as expressed as weighted average (Rupees in Lakhs) Particulars Gratuity Leave Sick Leave Baggage Post Retirement (Funded) Encashment (Un funded) Allowance Medical Benefit (Un funded) (Un funded) (Un funded) Discount rate 7.60% 7.60% 7.60% 7.60% 7.60% (7.16%) (7.16%) (7.16%) (7.16%) (7.16%) Expected rate of return on plan assets 7.51% - - - - (8.00%) - - - - Expected rate of salary increase 6.50% 6.50% 6.50% 6.50% 6.50% (6.50%) (6.50%) (6.50%) (6.50%) (6.50%) Method used Projected Unit Projected Projected Projected Projected Unit Credit (PUC) Unit Credit Unit Credit Unit Credit Credit (PUC) (PUC) (PUC) (PUC) 191 In case of JV – The retirement benefits viz. Gratuity, Leave encashment & other benefits as applicable at the time of retirement or discontinuance from services are charged to the Profit and Loss Account as and when payable . Liability for gratuity payable up to the year end (31.03.18) has been worked out to be Rs. 8.48 Lakhs (Previous year Rs. 26.32 Lakhs ). Provision for the same has been made as required by AS -15. (f) Defined Contribution Plan During the year , the company has recognized an expense of Rs. 166.19 Lakhs (Previous year : Rs 129.95 Lakhs ) in respect of contribution to Provident Fund, Rs. 0.84 Lakhs (Previous year: Rs. 0.76 Lakhs) in respect of contribution to Benevolent Fund and Rs. 126.03 Lakhs (Previous year: Rs. 97.08 Lakhs) in respect of contribution to Superannuation Fund. The estimates of future salary increase, considered in the actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors such as supply and demand in employee market. 13. RELATED PARTY DISCLOSURE (i) Details of transactions entered into with the related parties during the year as required by Accounting Standard (AS) – 18 on “Related Party Disclosures” are as under:- (Rupees in Lakhs) Particulars Key Management Personnel (KMP) Managerial remuneration 159.59 (163.73) Previous year figures are shown within brackets . (ii) Disclosure of Related Parties with whom Business transactions took place during the year :- Name Designation Period Shri K. S. Popli Chairman & Managing Director 01.04.2017 to 31.03.2018 Shri S. K. Bhargava Director- Finance 01.04.2017 to 31.03.2018 Shri Chintan Navinbhai Shah Director- Technical 05.03.2018 to 31.03.2018 Shri Surender Suyal Company Secretary 01.04.2017 to 31.03.2018 M/s M.P. Windfarms Limited A joint venture company in collaboration with M.P. No dividend received from the Urja Vikas Nigam Limited (25%), Consolidated Energy company during the current Consultants Limited (49.5%), IREDA (24%) and Others period as well as in the previous (1.5%) . year. 192 14. REMUNERATION OF DIRECTORS a) Remuneration paid to the Chairman and Managing Director, Director (Finance) and Director (Technical) and Company Secretary are as under:- (Rupees in Lakhs) Particulars Chairman & Director (Finance) Director Company Secretary Managing Director (Technical)* Salary & allowances 45.42 46.66 1.98 30.02 (40.16) (33.74) (24.27) (21.01) Medical allowance 1.31 1.13 - 1.56 (0.92) (0.84) (0.74) (0.68) Provident Fund 2.70 2.40 0.17 2.04 (2.71) (2.45) (2.14) (1.87) Superannuation Contribution 2.03 1.80 0.13 1.53 (1.92) (1.72) (1.61) (1.29) Value of perquisites as per 9.56 6.55 0.26 2.33 Income Tax Act, 1961 (8.99) (7.57) (5.35) (3.75) Total 61.02 58.54 2.54 37.49 (54.70) (46.33) (34.11) (28.60) Previous year figures are shown within brackets. * The Director Technical , Mr. Chintan Navinbhai Shah was appointed on 05.03.18 . Previous Year figures relate to Mr. B.V.Rao , who superannuated on 28.02.17 . b) The Chairman and Managing Director, Director (Finance) and Director (Technical) have also been allowed staff car including private journey upto a ceiling of 1000 Kms. per month on payment of monthly charges as per Department of Public Enterprises guidelines. c) Contribution towards Gratuity Fund for Directors is not ascertainable separately as the contribution to LIC is not made employee wise. d) Sitting Fees paid to Independent Directors Rs 6.00 Lakhs (Previous year: Rs. Nil ). 193 15. REMUNERATION TO AUDITOR (Rupees in Lakhs) Particulars Amount Annual Audit Fees 4.65 (5.00)1 Audit Fees for Interim Accounts 9.30 (4.00) Limited Review Audit 4.402 (1.00) Tax Audit 1.86 (2.00)3 Certification fee for Consolidation of the accounts 0.654 (1.30) Certification & Other Service 1.20 (1.50) Fee as Auditor to Tax Free /Masala Bonds / IFCS Audit 24.005 (16.50) Total 46.06 (31.30) Previous year figures are shown within brackets . 1 Including Rs. 1.00 Lakhs relating to FY 2015-16 . 2 Including Rs. 0.35 Lakhs relating to FY 2016-17 . 3 Including Rs. 0.40 Lakhs relating to FY 2015-16 . 4 Including Rs. 0.65 Lakhs relating to FY 2016-17 . 5 Including Rs. 2.00 Lakhs relating to FY 2016-17 . 16. DEFERRED TAXES a) In compliance with the Accounting Standard relating to “Accounting for Taxes on Income” (AS-22), the company has taken credit in the Statement of Profit & Loss towards deferred tax asset (net) on account of timing differences. After giving due consideration, deferred tax assets/liabilities are measured using the applicable current rates of Income Tax. b) Since the Company has resolved that it will not make any withdrawal from the Special Reserve created and being maintained under section 36(1)(viii) of the Income Tax Act, 1961, hence the special reserve created and maintained is not capable of being reversed. Thus it becomes a permanent difference as per AS 22. Accordingly, the company has not recognized any deferred tax liability on this account. 194 c) The details of deferred tax assets / Liabilities (net) as on 31st March , 2018 is given below:- (Rupees in Lakhs) A Deferred Tax Assets (+) Arising on account of timing differences:- As at 31.03.18 As at 31.03.17 ➢ Provision for Leave Salary, Gratuity, Sick Leave, Baggage Allowance, 802.46 476.62 Post Retirement Medical Benefit, Performance Incentive, Pay Revision and Withholding Tax . ➢ Provision for Bad & Doubtful Debts & Standard Assets (Floating 9,850.55 7,778.25 provision ) Total – A 10,653.01 8,254.87 B Deferred Tax Liabilities (-) ➢ Depreciation 5,180.05 2,792.73 ➢ Foreign Currency Monetary Item Translation Difference Account 6,246.83 - Total – B 11,426.88 2,792.73 C Deferred Tax Asset (+)/Liability (-) (A-B) -773.87 5,462.15 Deferred Tax Asset (+) / Liability(-) (Net) -773.87 5,462.15 In case of JV – As required by the Accounting Standard 22 on accounting for Taxes on Income, Deferred Tax assets / liabilities have not been recognized , since in the opinion of the management there is no reasonable certainty that sufficient future income will be available against which these can be realized 195 17. DISCLOSURE OF PRIOR-PERIOD ITEMS (Rupees in Lakhs) Particulars 2017-18 2016-17 Debits Credits Debits Credits Legal and Professional 4.07 - 5.37 - Miscellaneous Expenses - - 11.73 - Travelling and Conveyance 9.26 - - - Information and Dissemination - - 1.50 - Rent - 2.00 - - Interest on Lending Operations 106.20 110.19 173.28 373.68 Postage Telegram and Telephone 0.38 - - - Total 119.90 112.19 191.88 373.68 18. Disclosure Under Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’ During the year , the company has opted towards an irrevocable option for amortising the foreign exchange fluctuation loss/(gain) on the long term foreign currency monetary items over the balance period of such items in accordance with Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’ . Accordingly, an amount of Rs. 2,189.61 Lakhs has been recognized in the statement of Profit and Loss during the year. The remaining amount to be amortised in ‘Foreign Currency Monetary Item Translation Difference Account’ is Rs. 21,391.95 Lakhs. 19. ADDITIONAL INFORMATION a) Expenditure in Foreign Currency: • On Travelling Rs. 14.07 Lakhs (Previous year: Rs. 14.80 Lakhs ) • Bond issue expenses Rs. 351.04 Lakhs (Previous year: Nil ) • Interest & Commitment expenses: Rs. 11,985.58 Lakhs (Previous year : Rs. 8,001.85 Lakhs) . In addition, hedging cost of Rs. 32,271.37 Lakhs (Previous year : Rs. 31,099.74 Lakhs) has been paid in Indian Currency. b) Earnings in Foreign Exchange: • Interest in Rs. 160.99 Lakhs (Previous year : Rs. 137.33 Lakhs) c) M/s KfW paid Rs.54.41 Lakhs (Previous year: Rs. 207.69 Lakhs) directly to consultants (abroad) hired under TA programme under Direct Disbursement Procedures against Technical Assistance Programme (TAP) of EURO 1.5 Million sanctioned to IREDA in respect of KFW II & KFW IV lines of credit for expert services /assignments, capacity building and training programme etc. Further travel expense of Rs. Nil (Previous year: Rs 8.14 Lakhs ) was reimbursed to IREDA by KfW under the TA programme. 196 d) M/s KfW paid Rs. 51.95 Lakhs (Previous year: Rs. NIL) directly to consultant hired under TA programme under Direct Disbursement Procedures against TAP of EURO 1 Million sanctioned to IREDA in respect of KFW VI line of credit for expert services for capacity building measures and costs for related goods and services for IREDA. 20. MNRE PROGRAMME FUNDS The Company besides its own activities implements Programmes on behalf of Ministry for New and Renewable Energy on the basis of Memorandum of Understanding entered into with the said Ministry. In terms of stipulations of each of the MoUs, MNRE has placed an agreed sum in respect of each Programme with the company for programme implementation. Interest on MNRE loans are accounted on due basis. As the income generated by the MNRE programme loans is not the income of the company and also the loan assets belong to MNRE, the same is not considered for asset classification and provisioning purposes. On closure of the respective Programmes, the company is required to transfer the amount standing to the credit of MNRE (inclusive of interest accrued thereon) to MNRE after deducting the service charges, irrecoverable defaults and other dues as stipulated in the MoU. The amount due to MNRE on account of the above at the close of the period, along with interest on unutilized funds kept in separate bank account with Nationalized Banks as short-term deposits, is shown under the head Current Liabilities in the Balance Sheet. 21. Generation Based Incentives (GBI) and Capital Subsidy Scheme, MNRE IREDA is a Fund Administrator on behalf of MNRE for distribution of Generation Based Incentive and Capital Subsidy for Wind and Solar Sectors. Under these schemes, specific fund amount is provided by MNRE to IREDA for the purpose of disbursement of the same to the GBI claimants as per the scheme of MNRE. Therefore, essentially, the activity is receipt and utilization of funds. For any further release of GBI funds, IREDA is required to submit the Utilization Certificate along with audited statement of expenditure duly certified by a Chartered Accountants. The said requirement is fully complied with by IREDA and nothing further has been required by MNRE so far. The statutory auditors have not audited the accounts of Scheme. 22. MNRE FULLY SERVICE BONDS In terms of O.M. No. F.15(4)-B(CDN)/2015 dated 03.10.16 issued by Department of Economic Affairs , Ministry of Finance, Government of India , IREDA had been asked to raise an amount of Rs. 4,00,000.00 Lakhs through GOI fully serviced bonds for utilization of the proceeds by them for MNRE Schemes / Programs relating to Grid Interactive Renewable Power, off-Grid/Distributed & Decentralized Renewable Power and Investment in Corporations & Autonomous Bodies. An MoU between MNRE and IREDA has also been signed on 25.01.17 defining the role and responsibilities of both. Para No (c) of General Clauses at page 5 of the MoU specifically defines that the borrowings of MNRE bonds shall not be considered as assets/liability for any financial calculation by the Company . This implies that the amount raised by way of MNRE bonds while shall be reflected in the borrowing as well as assets however, there will be no impact of the same on IREDAs borrowings/ Assets or Income / Expenses. IREDA had raised Rs. 1,64,000.00 Lakhs GOI Fully Service Bonds on behalf of MNRE during the year 2016-17 and the same has been shown under Note No. 5 - Other long-term liabilities. Against this an amount of Rs. 1,63,879.20 Lakhs (Previous Year: 1,38,075.91 Lakhs) has been disbursed up to 31st March, 2018 as per the instructions of the MNRE for various plans/schemes. The said amount has been shown under Note No. 14 - Other Non-Current Assets - as amount recoverable from MNRE. The amount was kept in MIBOR Linked deposit on which the accrued interest of Rs. 1,206.99 Lakhs (Previous Year: 864.97 Lakhs) has been shown under Note No. 9 - Other Current liabilities . The balance cumulative amount (inclusive of interest accrued / earned ) of Rs. 977.79 Lakhs (Previous Year: 26,439.06 Lakhs) is kept in MIBOR Linked Term Deposit and Rs. 350.00 Lakhs (Previous Year: 350.00 Lakhs) in Current Account with Indusind Bank , which are shown under Note No. 16- Cash & Bank Balances in respective sub heads . All other MNRE funds, except the MNRE Fully Service Bonds, have been shown under the current assets- Cash and Bank Balances under Current / Saving Bank /Short Term Deposit account and corresponding liability shown under Other Current liabilities. 197 23. SUBSIDY (a) Interest Subsidy As per the Government policy, MNRE is providing interest subsidy. The interest subsidy is released to borrowers implementing MNRE programmes of Co-generation, Small Hydro, Briquetting, Biomass, Solar Thermal and Waste to Energy on NPV basis and for Solar and SPV programmes on actual basis. The interest subsidy is passed on to the borrowers on quarterly basis subject to complying with the terms and conditions of the sanction by these borrowers. The programme-wise details of interest subsidy received, passed, refunded during the year and the balance as on 31.03.2018 are as under:- (i) Interest subsidy on NPV basis:- (Rupees in Lakhs) Sl. Name of the sector Opening Balance Interest Subsidy Amount Interest Subsidy Closing Balance No. as at the beginning received during refunded passed on as at the closing of the year the year during the year during the year of the year 1 Bio-mass Co- 215.01 0 0 0 215.01 generation (215.01) (0) (0) (0) (215.01) 2 Small Hydro 1.83 0 0 0 1.83 (1.83) (0) (0) (0) (1.83) Sub Total….A 216.84 0 0 0 216.84 (216.84) (0) (0) (0) (216.84) Previous year figures are shown within brackets. 198 (ii) Interest subsidy on actual basis:- (Rupees in Lakhs) Sl. Name of the Opening Interest Amount Interest Interest Closing No. sector Balance as at Subsidy refunded received on Subsidy Balance as at the beginning received during the FDR passed on the closing of of the year during the year during the the year year year 1 Solar Thermal 0.04 0 0 0 0 0.04 Sector (0.04) (0) (0) (0) (0) (0.04) 2 SPV WP 2000- (-)51.35 0 0 0 0 (-)51.35 01 (-)(51.35) (0) (0) (0) (0) (-)(51.35) 3 SPV WP 2001- (-)136.03 0 0 0 0 (-)136.03 02 (-)(136.03 ) (0) (0) (0) (0) (-)(136.03 ) 4 SPV WP 1999- (-)6.85 0 0 0 0 (-)6.85 00 (-)(6.85) (0) (0) (0) (0) (-)(6.85) 5 SPV WP (-)2.97 0 0 0 0 (-)2.97 Manufacturing (-)(2.97) (0) (0) (0) (0) (-)(2.97) 6 SPV WP 2002- (-)41.39 0 0 0 0 (-)41.39 03 (-)(41.39) (0) (0) (0) (0) (-)(41.39) 7 Accelerated 0.10 0 0 0 0 0.10 SWH System (0.10) (0) (0) (0) (0) (0.10) Sub Total…..B (-)238.45 0 0 0 0 (-)238.45 (-)(238.45) (0) (0) (0) (0) (-)(238.45) Grand Total (-) 21.61 0 0 0 0 (-) 21.61 (A + B) (-)(21.61) (0) (0) (0) (0) (-)(21.61) Previous year figures are shown within brackets . (b) Capital subsidy During the period an amount of Rs. 45.50 Lakhs (Previous year: Rs. 1,067.09 Lakhs ) was received from MNRE towards Capital Subsidy. Out of the total capital subsidy amount available, Rs. 45.50 Lakhs (Previous year: Rs. 1,067.09 Lakhs ) was passed on to the borrowers on compliance of the terms and conditions of the capital subsidy scheme. 24. NCEF FUNDS In respect of NCEF assets, an amount of Rs. 42.74 Lakhs (Previous year: Rs. 64.44 Lakhs) representing 2% interest as per the Scheme , has been recognized and against the same Floating provision of Rs. 7.48 Lakhs (Previous year: Rs. 40.40 Lakhs) has been created in respect of income which has not been realized . 25. Debenture Redemption Reserve In terms of Rule 18 (7) (b) (ii) of The Companies Act 2013, the company is required to create a Debenture Redemption Reserve (DRR) upto 25% of the bonds issued through public issue. The Company has made a provision for DRR, so as to achieve the required amount over the respective tenure of the Tax Free Bonds . Accordingly a sum of Rs. 4,629.11 Lakhs (Previous Year: Rs. 4,629.11 Lakhs ) has been provided . 199 26. IMPAIRMENT OF ASSETS The Company, at each balance sheet date, assesses whether there is any indication of impairment of any asset and/or cash generating unit. If such indication exists, assets are impaired by comparing carrying amount of each asset and/or cash generating unit to the recoverable amount being higher of the net selling price or value in use. Value in use is determined from the present value of the estimated future cash flows from the continuing use of the assets. The Company’s solar project at Kasargod, Kerala is in the process of handing over and achieving its full generation during the year 31.03.2019. Further , the fixed tariff is also likely to be finalized during the year . Accordingly , in the opinion of the Management , no impairment is required to be provided for during the year . 27. SEGMENT ACCOUNTING The Company operates in 2 segments - Financing activities in the Renewable Energy (RE) & Energy Efficiency (EE) sector and Generation of power through Solar Plant operations at Kasargod , Kerala. Major revenue for the company comes from the segment of financing activities in the RE & EE sector. The other operating segment -Generation of power through Solar Plant is not a reportable segment in terms of the Accounting Standard (AS) -17 on “Segment Reporting”. The company operates in India, hence it is considered to operate only in domestic segment. As such considered as a single business/geographical segment for the purpose of Accounting Standard (AS) -17 on “Segment Reporting”. 28. The Company has paid an Interim Dividend of Rs. 10,500.00 Lakhs on 19.02.18 as approved in the 302nd meeting of the Board of Directors held on 07.02.18 . 29. Raising of Funds through IREDA GREEN MASALA BONDS : During the year, the Company has raised a sum of Rs. 1,95,000.00 Lakhs through “Ireda Green Masala Bonds“ in the international debt market at a coupon rate 7.125% for a tenure of 5 years (repayable at par on 10.10.2022) where yield for these bonds is 7.23%, thereby resulting into a discount of 0.4280 % of the total sum issued amounting to Rs. 834.60 Lakhs. The said amount of discount is being amortised over the tenor of the Bond, i.e. 5 years after utilisation of security premium. The charge during the period ended 31.03.18 to the Profit and Loss account is Rs. 78.59 Lakhs . The Unamortised amount carried forward is Rs. 750.97 Lakhs. Further the Company has to bear the charge of withholding tax, which is presently 5%, on the interest so paid annually. 30. Effect of Change in Accounting Policy The Company has been recording the transactions in foreign currency (except the foreign currency loans where derivative transactions have been made with banks), at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities were re-stated at the exchange rate prevailing at the year end. The difference between the year-end rate and the exchange rate at the date of transaction was recognized as income or expense in the Statement of Profit and Loss. During the year, the company has changed its Significant Accounting Policy No. 3 relating to the Foreign Currency Transactions w.e.f. 01.04.2017, so as to make it in accordance with the option available in Para 46A of Accounting Standard 11 ‘The Effects of Changes in Foreign Exchange Rates’, whereby the foreign exchange fluctuation loss/(gain) on the long term foreign currency monetary items , at each reporting period , is amortised over the balance period of such items. Accordingly, the amortisation of foreign exchange fluctuation loss of Rs. 2,189.61 Lakhs is included under the head ‘Foreign Currency Exchange Fluctuation Loss’ in the Statement of Profit and Loss and the Unamortised Foreign Currency Monetary Items Translation Difference taken to Reserve & Surplus. Due to this change in accounting policy, the profit for the year ended 31.03.2018 is higher by Rs. 21,391.95 Lakhs (before Taxes ) and Rs. 15,145.13 Lakhs (after taxes). 200 31. In the opinion of the management, the value of Current Asset, Loans & Advances on realization in the ordinary course of the business, will not be less than the value at which these are stated in the Balance Sheet. In case of J.V. – The Board of the Company is of the opinion that the Current Asset, Loans & Advances have value atleast equal to the amount stated , on realization in the ordinary course of the business. 32. Wind World India Ltd. has been referred to NCLT and Insolvency Resolution Professional has been appointed by NCLT. The said company stands as Corporate Guarantor to the loan amounting to Rs. 17,924.03 Lakhs to entities which are its subsidiaries. One of the said subsidiaries M/s Wind World India Infrastructure Ltd. (WWIIL) having an outstanding of Rs. 11,630.15 Lakhs has turned to a Non Performing Asset. 33. In case of JV – The windfarms at Nagda hills is only operational wherein company’s activity is only for infrastructure , operation and management. Windfarm site at Jamgodrani hills Dewas is not operational . 34. The figures are rounded off to the nearest Rupees in Lakhs. Previous year’s figures have been re-arranged/re-grouped wherever considered necessary to make them comparable with the current year’s figures. 35. THE DISCLOSURES UNDER RBI GUIDELINES ARE AS UNDER (IREDA ONLY) a. Capital to Risk Assets Ratio (CRAR) 18.05% (19.17%) b. Exposure to Real Estate Sector (Direct and Indirect) 0 (0) c. Maturity Pattern of Assets & Liabilities : (Rupees in Lakhs) Items Less than or equal to 1 More than a year upto 3 More than 3 years upto 5 year years years Loan Assets including accrued 3,16,483.93 2,23,761.25 2,15,152.80 interest (A) (3,14,212.11) (2,23,740.47) (2,52,425.84) Foreign currency assets (B) 21,842.24 3,893.96 1,068.43 (72,520.03) (3,531.84) (3,110.39) Total Assets (A+B) 3,38,326.17 2,27,655.21 2,16,221.23 (3,86,732.14) (2,27,272.32) (2,55,536.23) Rupee liabilities (C) 96,047.31 36,285.15 2,26,977.13 (1,28,908.83) (33,143.06) (19,432.33) Foreign currency liabilities (D) 40,579.72 90,745.56 1,13,967.78 (34,086.84) (75,498.23) (1,01,559.46) Total liabilities (C + D) 1,36,627.03 1,27,030.71 3,40,944.91 (1,62,995.68) (1,08,641.29) (1,20,991.79) 201 Items More than 5 years upto 7 More than 7 years Total years Loan Assets including accrued 1,99,651.49 6,03,884.24 15,58,933.72 interest (A) (1,96,247.67) (3,63,619.35) (13,50,245.44) Foreign currency assets (B) - - 26,804.63 (-) (-) (79,162.26) Total Assets (A+B) 1,99,651.49 6,03,884.24 15,85,738.35 (1,96,247.67) (3,63,619.35) (14,29,407.70) Rupee liabilities (C) 50,328.98 8,26,823.31 12,36,461.88 (78,931.26) (8,22,843.37) (10,83,258.86) Foreign currency liabilities (D) 90,145.98 4,55,818.91 7,91,257.94 (93,842.05) (4,82,174.89) (7,87,161.48) Total liabilities (C + D) 1,40,474.95 12,82,642.22 20,27,719.82 (1,72,773.31) (13,05,018.27) (18,70,420.34) As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 202 Consolidated Cash Flow Statement for the year ended 31.03.2018 ( Rs. / Lakhs ) Particulars For the year ended For the year ended 31.03.18 31.03.17 A Cash Flow from Operating Activities: Profit Before Exceptional & Extraordinary items and Tax 56,076.63 53,785.94 Adjustment for: 1 Depreciation 2,133.10 733.09 2 Provision for Non Performing Assets 8,087.87 12,390.93 3 Provision for Standard Assets 1,759.65 3,894.07 4 Foreign Exchange Fluctuations/Underlying exchange fluctuation 2,189.61 -8,721.69 5 Amortization of Capital Grant - -2.16 6 Loss on sale of Fixed Assets/Adjustment 0.03 0.39 7 Profit on Sale of Fixed Assets -2.19 -7.87 8 Gratuity Paid -4.88 - 9 Prior Period adjustment ( 24% Share in MP Wind Farms) - 0.00 Operating profit before Working Capital Changes 70,242.43 61,102.94 1 Loans and Advances - IREDA -2,26,449.96 -3,28,574.00 2 Loans and Advances - MNRE - - 3 Other Non Current Assets -25,772.95 -1,36,601.63 4 Other Bank Balances 62,259.89 39,798.06 5 Other Current Assets 3,694.95 -1,367.48 6 Trade Receivable -1,952.00 -223.48 7 Foreign Currency Monetary Item Translation Difference a/c -21,391.95 - 8 Other Long Term Liabilities 2,709.17 1,55,492.13 9 Other Current Liabilities -42,425.63 48,231.16 10 Trade Payable 719.47 329.59 11 Provisions 1,120.83 625.85 12 24% Share in MP Wind Farms - - 13 Decrease/ (Increase) in Current Liabilities -2.10 -6.46 14 Decrease/ (Increase) in Current Assets 2.04 8.91 -2,47,488.24 -2,22,287.35 Cash Generated from Operations -1,77,245.81 -1,61,184.40 Income Tax -13,137.22 -16,411.87 24% Share in MP Wind Farms - - Net Cash Generated from Operations -1,90,383.03 -1,77,596.28 B Cash Flow From Investing Activities 1 Purchase of Fixed Assets -2,694.88 -15,408.69 2 Sale of Fixed Assets 0.04 9.44 3 Dividend on Investment - - 4 24% Share in MP Wind Farms 4.27 5.28 Net Cash flow from Investing Activities -2,690.58 -15,393.97 203 Particulars For the year ended For the year ended 31.03.18 31.03.17 C Cash Flow from Financial Activities 1 Securities Premuim -5.04 - 2 Dividend paid -2,550.06 - 3 Dividend Tax paid -519.13 - 4 Interim Dividend paid -10,500.00 -10,000.00 5 Dividend Tax on Interim Dividend paid -2,137.55 -2,035.76 6 Increase /Decrease in Short term Debts - -26.98 7 Increase /Decrease in Long term Debts 1,88,967.67 3,13,158.54 Net Cash flow from Financing Activities 1,73,255.88 3,01,095.80 Net Increase in Cash and Cash Equivalents -19,817.73 1,08,105.56 Cash and Cash Equivalents at the beginning of the year 2,06,139.02 98,037.86 24% Share in MP Wind Farms 51.60 47.19 Total Cash and Cash Equivalents at the beginning of the year 2,06,190.62 98,085.06 Cash and Cash Equivalents at the end of the year 1,86,319.57 2,06,139.02 24% Share in MP Wind Farms 53.31 51.60 Total Cash and Cash Equivalents at the end of the year 1,86,372.89 2,06,190.62 Net Increase in Cash and Cash Equivalents -19,817.73 1,08,105.56 Components of cash and cash equivalents as at the end of the period Postage Imprest 0.50 0.25 In Current Accounts with Banks 60,559.43 1,17,164.93 In Overdraft Accounts with Banks 6.25 0.24 In Deposit Accounts with Banks 1,25,753.40 88,973.11 Cheques under Collection/DD in hand - 0.50 1,86,319.57 2,06,139.02 Notes to the Cash Flow statement. 1 Previous years figures have been rearranged and regrouped wherever necessary. 2 Cash and cash equivalent includes foreign currency deposits which are available to meet the foreign currency loans only. 3 There is no such cash and cash equivalent balance held by IREDA that are not available for use for IREDA. 4 Total Deposits includes deposits of Rs. 77,500.00 Lakhs having original maturity of more than 90 days . As per our report of even date For Jain Chopra & Company For and on Behalf of the Board of Directors Chartered Accountants ICAI Regn. No. 002198N Sd- Sd- Sd- Ashok Chopra S K Bhargava K S Popli Partner Director (Finance) Chairman and Managing Director Membership No.017199 DIN No. 01430006 DIN No. 01976135 Sd- Surender Suyal Place: New Delhi Company Secretary Date: 26.05.2018 Membership No. A11900 204