GSECL Annual Report

GUJARAT STATE ELECTRICITY CORPORATION LIMITED
16th Annual Report 2008-09
CONTENTS
PAGE NO.
ORGANISATION 3
POWER PLANTS 4
BOARD OF DIRECTORS 5
CORE TEAM 6
FINANCIAL INSTITUTIONS & BANKERS 7
AUDITORS AND COMPANY SECRETARY 8
NOTICE 9
DIRECTORS’ REPORT 13
AUDITORS’ REPORT 29
BALANCE SHEET 34
PROFIT AND LOSS ACCOUNT 35
CASH FLOW STATEMENT 36
SCHEDULES FORMING PART OF THE BALANCE SHEET 37
SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT 44
SIGNIFICANT ACCOUNTING POLICIES 47
NOTES FORMING PART OF FINANCIAL STATEMENTS 54
BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE 63
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(A wholly owned Subsidiary of Gujarat Urja Vikas Nigam Ltd.)
GSE CL
REGISTERED OFFICE
“VIDYUT BHAVAN”, RACE COURSE, VADODARA – 390 007
WEBSITE : www.gsecl.in EMAIL : gsecl@gebmail.com
SIXTEENTH ANNUAL REPORT

2008-2009

POWER PLANTS
THERMAL POWER STATIONS

GANDHINAGAR
WANAKBORI
SIKKA
UKAI
KUTCH
HYDRO POWER STATIONS

KADANA
PANAM
UKAI
GAS BASED POWER STATIONS

UTRAN
DHUVARAN
OIL BASED POWER STATIONS

DHUVARAN

BOARD OF DIRECTORS
SHRI D. J. PANDIAN, IAS CHAIRMAN

(W.E.F. 8 DECEMBER, 2009)
TH
SHRI S. JAGADEESAN, IAS CHAIRMAN

(UPTO 8 DECEMBER, 2009)
TH
SHRI C. L. MEENA, IAS DIRECTOR

(W.E.F. 8 OCTOBER,2009)
TH
SHRI I. P. GAUTAM, IAS DIRECTOR

SHRI L. CHUAUNGO, IAS DIRECTOR
PROF. N. VENKITESWARAN DIRECTOR
(UPTO 20 NOVEMBER, 2008)
TH
SHRI H. P. DESAI DIRECTOR

SHRI M. A. BHATT DIRECTOR
(UPTO 7 OCTOBER,2009)
TH
SHRI B. S. REUBEN DIRECTOR

SHRI P. H. RANA MANAGING DIRECTOR

CORE TEAM
CORPORATE OFFICE
v SHRI B. N. CHUDASAMA EXECUTIVE DIRECTOR
v SHRI A. D. KARPE I/C. CHIEF GENERAL MANAGER (HR&A)
v SHRI M. B. KAKA GENERAL MANAGER (F&A)
v SHRI R. C. SHAH CHIEF ENGINEER (P&P)
v SHRI P. M. PARMAR CHIEF ENGINEER, (GENERATION)
v SHRI M. N. PATEL CHIEF ENGINEER (CIVIL)
v SHRI V. P. JANI COMPANY SECRETARY
POWER PLANTS
v SHRI D. N. DHOLAKIYA CHIEF ENGINEER, WANAKBORI
v SHRI J. N. DOSHI CHIEF ENGINEER, GANDHINAGAR
v SHRI R. J. REVAR CHIEF ENGINEER, UKAI
v SHRI M. D. DAVE CHIEF ENGINEER, KLTPS
v SHRI M. D. VYAS CHIEF ENGINEER, SIKKA
v SHRI P. C. PATEL CHIEF ENGINEER, UTRAN
v SHRI D. C. SOLANKI CHIEF ENGINEER, DHUVARAN
v SHRI R. V. PATEL I/C CHIEF ENGINEER, KEVADIA, SSNNL
v SHRI U. H. TRIVEDI ENGINEER IN-CHARGE

FINANCIAL INSTITUTIONS
AND
BANKERS
FINANCIAL INSTITUTIONS / GOVERNMENT COMPANY

POWER FINANCE CORPORATION LIMITED
RURAL ELECTRIFICATION CORPORATION LIMITED
GUJARAT STATE FINANCIAL SERVICES LIMITED
BANKERS
STATE BANK OF INDIA
CENTRAL BANK OF INDIA
DENA BANK
VIJAYA BANK
BANK OF BARODA
UNION BANK OF INDIA
ALLAHABAD BANK
CANARA BANK
KARUR VYSYA BANK
ORIENTAL BANK OF COMMERCE
KALUPUR COMMERCIAL CO-OPERATIVE BANK

AUDITORS
AND
COMPANY SECRETARY
STATUTORY AUDITORS
G. K. CHOKSI & CO.

CHARTERED ACCOUNTANTS
AHMEDABAD
COST AUDITORS
K. SANKLECHA & ASSOCIATES

COST ACCOUNTANTS
VADODARA
COMPANY SECRETARY
VIJAY P. JANI

NOTICE OF SIXTEENTH ADJOURNED ANNUAL GENERAL MEETING

TO SHAREHOLDERS.
NOTICE is hereby given that the SIXTEENTH ADJOURNED ANNUAL GENERAL MEETING of
the Members of Gujarat State Electricity Corporation Limited will be held on Saturday 30th January,
2010 at 10.00 a.m. at the Registered Office of the Company situated at Vidyut Bhavan, Race
Course, Vadodara-390007 to transact the following business of original Annual General Meeting held
on 23rd December, 2009: -
ORDINARY BUSINESS:
To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2009 and the Profit &
Loss Account for the year ended on that date and the reports of Directors and Auditors along with
the comments of the Comptroller and Auditor General of India thereon.
By Order of the Board

Registered Office : For Gujarat State Electricity Corporation Ltd.
Vidyut Bhavan,
Race Course,
Vadodara-390 V. P. Jani
Date: 19-01-2010 Company Secretary
NOTES:
A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A

PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED NOT BE A MEM-
BER OF THE COMPANY. Proxy in order to be effective must be received by the Company not less
than 48 hours before the meeting.

NOTICE
NOTICE is hereby given that the SIXTEENTH ANNUAL GENERAL MEETING of the Members of
Gujarat State Electricity Corporation Limited will be held on Wednesday, the 23rd December, 2009 at
12.30 p.m. at the Registered Office of the Company situated at Vidyut Bhavan, Race Course,
Vadodara-390007 to transact the following business: -
ORDINARY BUSINESS:
1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2009 and the
Profit & Loss Account for the year ended on that date and the reports of Directors and
Auditors along with the comments of the Comptroller and Auditor General of India thereon.
2. To appoint a Director in place of Shri I.P. Gautam, IAS who retires by rotation and being
eligible offers himself for re-appointment.
3. To appoint a Director in place of Shri H.P. Desai who retires by rotation and being eligible
offers himself for re-appointment.
4. To fix the remuneration of M/s. P. Parikh & Associates, Chartered Accountants, Vadodara,
appointed as Statutory Auditors of the Company for the F.Y. 2009-10, by the Comptroller
And Auditor General of India, New Delhi (C & A G).
SPECIAL BUSINESS:
5. To consider and, if thought fit, to pass the following resolution with or without modification,
as an Ordinary Resolution.
“RESOLVED THAT Shri D.J. Pandian, IAS, appointed as an Additional Director of the Company
on 08.12.2009 under Section 260 of the Companies Act, 1956, and who holds such office till
the conclusion of this Annual General Meeting and is eligible for re- appointment, be and is
hereby appointed as a Director of the Company.”

For Gujarat State Electricity Corporation Ltd.
Registered Office:
Vidyut Bhavan,
Race Course,
Vadodara-390 007.
V. P. Jani
Date: 16/12/2009. Company Secretary
10

NOTES:
1 A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO AP-

POINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND THE PROXY NEED
NOT BE A MEMBER OF THE COMPANY. Proxy in order to be effective must be received by
the Company not less than 48 hours before the meeting.
2 The Statutory Auditors, M/s. G.K. Choksi & Co., Chartered Accountants, Ahmedabad, have
been appointed by the Office of the Comptroller & Auditor General of India (CAG) i.e. Central
Government for the current financial year 2008-09, as the Company continues to attract
provisions of Section 617 read with the provisions of Section 619 (2) of the Companies Act,
1956.
3 The Ministry of Corporate Affairs, Government of India, New Delhi has granted the extension of
time for three months i.e. up to 31st December, 2009, to the Company for holding the Sixteenth
Annual General Meeting of the Company, vide its letter No. 9/54/2008-C.L.-V dated 29.09.2009.
11

ANNEXURE TO NOTICE
EXPLANATORY STATEMENT PURSUANT TO SECTION 173 OF THE COMPANIES ACT,

1956.
In conformity with the provisions of Section 173 of the Companies Act, 1956, the following Explanatory
Statement sets out all the material facts relating to the Special Business mentioned in the accompanying
Notice and should be taken as forming part of this Notice.
Item No. 5
As per the Article 17 of the Articles of Association of the Company, the GUVNL i.e. the Holding
Company has a right, in consultation with Government of Gujarat to appoint Chairman of the
Company. Accordingly, the Company has received a letter dated 10th December, 2009, of GUVNL
along with the letter No. GUV-1108-1336-K dated 10th December, 2009 of Government of Gujarat
nominating Shri D.J. Pandian, IAS, the Principal Secretary, Government of Gujarat, Energy &
Petrochemicals Department, as Chairman of the Company in place of Shri S. Jagadeesan, IAS.
Shri D.J. Pandian, IAS, was appointed as an Additional Director in terms of Section 260 of the
Companies Act, 1956 and holds the office of Director till the conclusion of this Annual General
Meeting. Shri D.J. Pandian is a MBA from Madras University. He is a senior IAS Officer having
Administrative and Corporate experience spanning 25 years. Shri Pandian was the Managing
Director of Gujarat State Petroleum Corporation (GSPC) from 2001 to 2009. Earlier Shri Pandian
was working on deputation with the World Bank in Washington, D.C. He was Director, External
Commercial Borrowing, Ministry of Finance, Government of India during 1995-97.
The Board recommends the appointment as Director.
None of the Directors, except Shri D.J. Pandian, IAS, is interested or concerned in the said Resolution.

For Gujarat State Electricity Corporation Ltd.
Registered Office:
Vidyut Bhavan,
Race Course,
Vadodara-390 007.
V. P. Jani
Date: 16/12/2009. Company Secretary
12

DIRECTORS’ REPORT
To,
The Members,
Your Directors are pleased to present their SIXTEENTH ANNUAL REPORT together with the Audited
Statement of Accounts of the Company for the financial year ended 31st March 2009.
(A) FINANCIAL RESULTS
(Rs. in Lacs)
Particulars 31.03.2009 31.03.2008
Sales 710123 620474
Other Income 22229 12914
Total Income 732352 633388
Total Expenditure 662979 568237
Gross Profit 69373 65151
Interest 27859 28044
Provision for depreciation 33372 27764
Profit before extraordinary items 8142 9343
Prior period adjustment and tax
Prior period adjustment / Extra-Ordinary items (59) 2508
Profit Before Tax 8201 6835
Less: Provision for current Income Tax 1148 911
Provision for Deferred Tax Liability — —
Net Profit after Tax 7053 5924
Add: Balance brought forward from earlier year 40978 35054
Balance carried to Balance Sheet 48031 40978
(B) DIVIDEND
Your Directors have decided not to recommend any dividend on the Equity Shares of the
Company for the F.Y. 2008-09.
(C) INDUSTRY OVERVIEW
Energy is an important input required for economic and social development. India ranks the
world’s sixth largest energy consumer accounting to about 3.5 % of the world’s total annual
energy consumption, but per capita consumption of energy is very low at 631 kwh as
compared to world consumption of 2873 kwh which needs to be increased to meet the goals
of economic and social development. India has been one of the fastest growing economies in
emerging markets. Indian economy has posted more than 9% growth for three years
consecutively and has seen a decade of more than 7% growth. One of the key factors
behind any growing country is the energy requirement and supply in that country. As energy
plays a very important role in industrial production and common man’s life, it has become
extremely important to boost the growth in energy segment for the growth of the country.
13

The demand of electricity in India is enormous and is growing steadily.

Since independence the Indian electricity sector has grown many folds in size and capacity.
The generating capacity under utilities has increased from a meager 1362 MW in 1947 to
147965 MW as on 31.03.2009. The capacity addition during 2008-09 was 3454 MW which is
31.2 % of target of 11061.2 MW.
The breakup of installed capacity as on 31.03.2009 is as under:
All
Thermal Nuclear Hydro RES Total
India
Coal Gas Diesel Total
MW 77648.88 14876.61 1199.75 93725.34 4120.00 36877.76 13242.41 147965.41
% age 52.5 10.1 0.8 63.3 2.8 24.9 8.9 100
Installed Capacity of India (31-03-2009)
The all India Region wise generating installed capacity (MW) of Power Utilities including
allocated shares in joint & Central Sector Utilities is given hereunder:
Sr. Thermal
Region Nuclear Hydro RES Total
No.
Coal Gas Diesel Total
01 Northern 18807.5 3531.2 12.99 22351.7 1180.0 13425.2 1766.4 38723.2
02 Western 25652.5 6983.2 17.48 32653.2 1840.0 7448.5 4023.6 45965.3
03 Southern 16882.5 3406.2 939.32 21028.0 1100.0 10954.2 7047.9 40130.0
04 Eastern 16446.4 190.0 17.20 16653.6 0.00 3933.9 227.4 20814.9
05 N. Eastern 60.0 766.0 142.7 968.7 0.00 1116.0 171.0 2255.7
06 Islands 0.0 0.0 70.0 70.0 0.0 0.0 6.1 76.1
07 All India 77648.9 14876.6 1199.8 93725.2 4120 36877.8 13242.4 147965.4
14

The total electricity generation in the country increased from 704.5 Billion Units (BU) during
2007-08 to 723.8 BU during 2008-09. The electricity generation during 2008-09 was 93.44 %
of the target of 774.34 BU. During 2008-09, there was 11.1 % energy shortage and 11.9 %
peak shortage.
The region wise & overall Power Supply Position during 2008-09 was as under:
Energy Peak Demand

Region Deficit (%) Deficit (%)
Requirement (MUs) (MW)
Northern 224218 - 10. 8 33034 -10.7
Western 254486 -16.0 37240 -19.0
Southern 204086 -7.5 28340 -7.4
Eastern 82127 -4.6 12901 -9.4
North Eastern 9407 -13.5 1820 -25.4
Overall 774324 -11.0 109809 -11.9
The Plant Load factor in the country has been steadily increasing over the years representing
higher Utilisation of installed capacity. The average PLF of TPSs of Power Utilities during
2008-09 was 77.22 %. The sector wise and overall PLF during 2007-08 & 2008-09 is as
under:
Year Central State Private Overall

2007-08 86.7 71.9 90.8 78.6
2008-09 84.3 71.2 91.0 77.2
The National Electricity Policy envisages “Power for all by 2012” and per capita availability of
Power to be increased to over 1000 units by 2011-12. To achieve this, a total capacity
addition of about 1,00,000 MW is required during 10th & 11th Plan period. To meet the energy
generation requirement of 1038 BU and a peak load of 1,52,746 MW with diversity and 5%
spinning reserve, a capacity addition of about 82,500 MW is required during 11th Plan. Based
on the 10th Plan and actual capacity addition of 21,180 MW, a capacity addition of 78,577 MW
comprising of 39865 MW (50.7%) in Central Sector, 27,952 MW (35.6%) in state sector and
10,760 MW (13.7%) in private sector has been proposed during the 11th Plan.
(Source: www.powermin.nic.in, www.cea.nic.in, www.businesswire.com)
Gujarat has been progressing as one of the leading power generating state in India. As on
31.03.2009, Gujarat had total installed capacity of 10427 MW constituting 7.05 % of all India
Generating capacity. The sector wise distribution of installed capacity of Gujarat is – GSECL
(4776 MW), Central Sector (3233 MW) and IPPs (2418 MW).
15

Growth of installed capacity of Gujarat (in MW) since 6th plan
Year GSECL Central Private Total

Sector Sector
31.03.1985 2692 247 381 3320
31.03.1990 3742 550 410 4702
23.03.1992 4082 780 655 5517
31.03.1997 4414 1293 847 6554
31.03.2002 4927 1532 2156 8615
31.03.2003 4888 1532 2156 8576
31.03.2004 4995 1532 2156 8683
31.03.2005 4995 1532 2156 8683
31.03.2006 4968 1840 2166 8974
31.03.2007 4968 2839 2416 10223
31.03.2008 4766 3001 2418 10185
31.03.2009 4766 3233 2418 10427
The Gujarat State Electricity Corporation Limited (GSECL) is the Prominent Power
Generating Company in Gujarat and dedicated to supply electricity with high reliability for
development and Industrial Growth of Gujarat State throughout its inception in 1960. Today
GSECL owns total installed capacity of 4776 MW (as on 31.03.2009) comprising of 4219 MW
Thermal, 547 MW Hydro & 10 MW Wind. The Thermal capacity comprises of 3430 MW Coal
based, 215 MW Lignite based, 220 MW Oil based & 354 MW Gas based Power Stations. The
GSECL operates seven Thermal & two Hydal Power Plants varying unit from 1 MW to 210
MW in Gujarat which consists of a biggest Thermal Power Station (at Wanakbori) consisting of
seven units each of 210 MW capacity.
The year 2008-09 was another excellent year of performance for GSECL. Total generation
from GSECL Power stations during 2008-09 was 28387.766 MUs.
The generation of electricity (MUs) in Gujarat during 2008-09 is as under:
GSECL : 28387.766 MUs

Central Sector Share : 20376.353 MUs
Private Sector : 20172.375 MUs
Total : 68936.494 MUs
16

(D) PERFORMANCE OF THE COMPANY:

(1) Financial:
The total revenue for the year is Rs. 7323.52 Crores, while total operating expenditure
for the year ended 31st March, 2009 is Rs.6629.79 Crores. The profit before interest
and tax is Rs.693.73 Crores. Depreciation and interest are Rs.333.72 Crores and
Rs.278.59 Crores respectively. The profit is Rs.82.01Crores.
(2) Operational:
The generation of electricity (MUs) in Gujarat during 2008-09 is as under:
GSECL : 28387.766 MUs

Central Sector Share : 20376.353 MUs
Private Sector : 20172.375 MUs
Total : 68936.494 MUs
Power station wise generation of the company is as under :
Deemed
Power Station Generation Total PLF (%)
Generation MUs
Ukai (Thermal) 4835.07 23.35 4858.43 65.25
Gandhinagar 5966.42 71.21 6037.63 79.22
Wanakbori 11112.78 104.82 11217.59 87.11
Sikka 1409.93 23.18 1433.11 68.17
KLTPS 1270.62 4.55 1275.18 67.71
Dhuvaran (oil) 1187.87 204.19 1392.06 72.23
Dhuvaran (Gas) 1185.51 236.31 1421.82 74.09
Utran (Gas) 869.76 202.72 1072.48 90.69
Ukai (Hy) 466.74 - - -
Kadana (Hy) 83.05 - - -
Total 28387.77 870.36 28708.30 77.68
Note: Hydro generation is not considered in PLF calculation.
(3) The achievements of GSECL during 2008-09 are as under:
§ UTRAN GBPS has been awarded “IEEMA Award” first prize (trophy) at National
level for “Excellence in Gas based Power Generation”.
§ Wanakbori TPS has achieved ever highest yearly generation of 11112.775 MUs
with 86.30 % PLF crossing the previous record of 85.34 % (2006-07).
§ Wanakbori TPS (Station) has achieved maximum continuous running days from
14.02.09 to 29.03.09 (42 days) crossing previous record of 30 days.
§ Wanakbori TPS has achieved ever lowest yearly DM Make up water consumption
17

of 1.80 % during Mar 09.

§ Wanakbori TPS has achieved ever lowest demurrage hours of 604 hours during
2008-09.
§ Wanakbori TPS has achieved ever lowest sp. Oil consumption 0.49 ml/kwh during
2008-09.
§ Gandhinagar TPS has achieved ever highest yearly generation of 5966.424 MUs
with 78.29 % PLF.
§ Gandhinagar TPS has achieved ever lowest FO consumption of 6409 MT during
2008-09.
§ KLTPS (Station) has achieved maximum continuous running days from 14.10.08
to 29.10.09 (16 days).
§ Dhuvaran CCPP (I & II) CDM Project has been issued 21526 CERs for the initial &
first verification for the period from 10.02.2008 to 30.04.2008
(E) FUEL:
Coal :
As you are aware that the Fuel is the most important and critical part of the Company
operations and therefore the Company is continuously making efforts for improvement in fuel
procurement, management and cost. In the present regulatory regime, Company committed
to reduce its fuel cost and perform with better efficiency. During the year, various steps have
been taken for improvement in availability of coal, its quantity and reduction in cost. This
includes better coal linkages, increased use of washed coal and blending of imported coal.
Company aimed at 100% beneficiation of low-grade, high-ash indigenous coal as per its long-
term fuel strategy and achieved almost 100% beneficiation and supply of washed coal to its
Power Stations in the year 2008-09. To overcome the demand-supply gap of domestic coal,
the Ministry of Power, Govt. of India issued targets of import of coal by the SEB’s/ Power
Utilities. In spite of very high prices in the International Coal Market, GSECL imported 1 million
tonnes of coal in the year 2008-09 as against the target of 1.38 million tonnes given by MoP.
Thus, by blending of @ 17% of imported coal at Gandhinagar and Sikka Power Stations and
a small at quantity at Wanakbori TPS; the Company had met with the directive of MoP,
shortages of the domestic coal and also availed the technical benefits with the use of imported
coal.
The Company executed Coal Supply Agreements with South Eastern Coalfields Ltd. and
Western Coalfields Limited for GSECL Power Stations. Due to execution of the Agreements,
the fuel security for the existing coal-based Power Stations has been ensured to the great
extent.
All these steps have contributed to improve the present fuel procurements to ensure regular
supply of quality fuel. This will lead to reduction in cost and better plant performance.
Captive Mining:
Your Directors are pleased to inform you that to have a fuel security for the future generation
expansion plans, the Company had joined hands together with Mahagenco and incorporated
a JVC in the name of “Mahaguj Collieries Ltd.” (MGCL) and MGCL appointed a Mine Developer-
cum-Operator for the development of the allotted coal blocks.
Gas & Oil :
18

For GSECL gas based power stations, company executed gas supply and transportation
agreements with GAIL, RIL, NIKO, RGTIL & GSPL to ensure required quantity of gas for
existing units of Dhuvaran and Utran as well as Utran new gas base unit. The Company
executed the Gas Supply and Transportation Agreement with RIL-Niko, RGTIL & GSPL for
quantities of 4.8 Lacs SCMD for Dhuvaran CCPP-II, 4.1 Lacs SCMD for Utran CCPP-I and 17
Lacs SCMD for Utran CCPP-II so as to meet the gas requirement from newly explored KG-D6
fields of Reliance.
For Dhuvaran LSHS and FO/LDO for other power stations is made available by IOCL as per
our requirements during the year.
(F) ASH HANDLING AND UTILISATION:
As a part of its continuing efforts towards environment protection and pollution control, the
Company in consultation with TERI (The Energy and Resources Institutes) has developed a
comprehensive ash management plan for its gainful utilization.
The Company is exploring the possibility/feasibility of enhancing the infrastructure facilities for
dry fly ash extraction, collection and evacuation capacity for achieving 100 % fly ash utilization
at its various power stations. Construction of additional dry ash collection facilities is under
progress at Gandhinagar and Ukai power stations.
With proper implementation of ash management plan, the off-take of both dry and pond ash
has increased to 32.7% in the year 2008-09 & 35.5% from April 2009 to October 2009 in the
year 2009-10 (from a low of only 5.7% in the year 2001). Gandhinagar TPS has achieved
the highest dispatches 77% followed by Ukai TPS 31%, Sikka TPS 27% and Wanakbori TPS
20% (from April 2009 to October 2009 in the year 2009-10).
(G) NEW PROJECTS:
Your Directors are pleased to brief you on the New Projects of the Company as under:
1.0 370 MW Gas Based Combined Cycle Power Plant at Utran:
The Company is setting up a 370 MW Gas Based Combined Cycle Power Project in the
existing premises. The contract for its installation is awarded to M/s. ALSTOM (Switzerland)
Ltd. by inviting Global Competitive Bids. Unit is commissioned in open cycle mode on
10.07.2009 and in combined cycle mode on 10.09.2009. The unit has entered into
Commercial Operation since 7th November 2009.
2.0 350+ MW Gas Based Combined Cycle Power Plant at Dhuvaran:
The Company has initiated all actions for execution of 350+ MW Gas Based Combined
Cycle Power Plant at Dhuvaran in the existing premises. The offer for selection of EPC
Contractor is invited on Global Competitive Bid (ICB) basis.
3.0 75MW Lignite based Extension Unit – IV at KLTPS, Panandhro:
The unit was synchronized on 28.12.2008. All efforts are made by the Company with
M/s. BHEL and other Agencies to achieve Commercial Operation Date by December
2009.
4.0 2 x 250 MW Coal Based Extension Unit 3 & 4 at Sikka:
The Company is in the process of setting up of 2 x 250MW Coal Based Thermal Power
Project as an extension to the existing 2 x 120 MW Thermal Power Station at Sikka. All
the statutory clearances are obtained. M/s.TCE Consulting Engineers Ltd., Bangalore
are retained as Project consultant. EPC contract with BHEL is executed and 22.5.2007
is achieved as Zero date. Design and engineering is commenced. Material supply is
19

started. The work could not be started due to additional clearance from MoEF.
5.0 500 MW Coal based extension unit No. 6 at Ukai TPS:
To augment generation capacity of the Company, Ukai extension project unit 6 of 500
MW capacities has been taken up in available land. EPC contract with BHEL is executed
and 06.10.2007 is achieved as Zero date. All statutory clearances have been received.
Design and Engineering of the project is commenced, and site works are in progress.
The scheduled commissioning of unit 6 is by February 2011.
6.0 10 MW Wind Energy Farm near Village Bayath in Kachchh:
As a part of power generation through non conventional resources, the Company has
set up 8 wind mills each of 1.25 MW totaling 10 MW wind energy farm at village Bayath
in Kachchh & commissioned in March / May 2008. The Wind farm is operational.
7.0 800 / 600 MW Coal Based Extension unit No. 8 at Wanakbori TPS:
The project is identified for execution in 12th FYP. Process for obtaining Environment
Clearance is in advance stage. Offers for consultant’s appointment are invited.
8.0 Other Power Projects planned by the Company:
As part of continually augmenting generating capacity, the Company has approved for
carrying out Feasibility Study Report and preparation of Detailed Project Report for the
following projects.
a. 2x800 MW Coal Based Projects at Sinor, Dist. Vadodara.
b. 4x800 MW Coal Based Projects at Sarakhadi, Dist. Junagadh (expandable to 6x800
MW units).
c. 2x800 MW Coal Based Projects at Dahej, Dist. Bharuch.
d. 1000 MW Gas Based Combined Cycle Project at Dudhva, Dist. Banaskanta.
e. 1000 MW Gas Based Combined Cycle Project at Chandrumana, Dist. Patan.
(H) MAJOR R & M WORKS
a. 2 x 120 MW Units 1 & 2 of Ukai TPS:
RLA, CA, LE Study and PET of Ukai Unit 1 & 2 is completed and necessary orders have
been placed on M/s. BHEL for execution of R&M and LE works. Unit No. 1 R&M and LE
works started in the working of September 2006 and unit – 1 is recommissioned in the
month of May 2008. Unit No. 2 is under shut down since August 2008 for execution of
R & M and LE works by BHEL. Work in all area is under progress.
b. 2 x 120 MW Units 1 & 2 of Gandhinagar TPS:
Based on RLA study done by BHEL, works necessary for R&M and LE works were
identified and order was placed on BHEL. Due to dismal performance in R&M works by
BHEL at Ukai, a definite view is being taken whether to go ahead in these works or
otherwise.
(I) PROJECT FINANCE:
As a part of fund requirements for the new projects of the Company as already mentioned in
para (G&H), the Company is able to successfully tie up the debt requirements for the
following new projects at a very competitive rate of interest and other terms and conditions.
i) Term loan of Rs. 947.00 Crores sanctioned by M/s. Rural Electrification Corporation
Limited for 370 MW Gas Based CCPP at Utran, Dist. Surat.
20

ii) The debt requirement will be firmed up after finalization of project cost for 350 MW Gas
Based CCPP – III at Dhuvaran, Dist Anand.
iii) Term Loan of Rs. 288.73 Crores has been sanctioned by M/s. Power Finance Corporation
Ltd., for 75 MW Lignite based Power Plant at Panandhro, Kutchh; Dist. Bhuj.
iv) Term loan of Rs. 1775.00 Crores sanctioned by M/s. Power Finance Corporation for
500 MW Coal Based Power Plant at Ukai, Dist. Surat.
v) Term loan of Rs. 1815.00 Crores sanctioned by various Banks for 500 MW Imported
Coal Based Power Plant at Sikka, Dist. Jamnagar.
vi) The Company obtained Term Loan from M/s. Kalupur Commercial Co-Operative Bank
Ltd., Vadodara for Rs. 38.52 Crores for its 10 MW Wind Mills located at Bayed, Kutchh.
vii) Regarding major R&M works at Ukai TPS (Unit 1&2) and Gandhinagar TPS (Unit 1 & 2),
the term loan for Rs.208.00 Crores and Rs. 320.00 Crores has been sanctioned by M/
s. PFC, respectively.
During the year under review the Company has also made arrangements with various
Banks for Working Capital requirements of the Company.
(J) ENERGY CONSERVATION:
1. The Energy Audit of 5 No. of units i.e. Gandhinagar TPS Unit#4, Wanakbori TPS
Unit#6 & Unit#7, KLTPS Unit#2 and Dhuvaran CCPP - II has been carried out during
the year 2008-09. The final energy audit report of Wanakbori TPS Unit#6 & Unit#7 is
already received and for balance units, the final report is pending for submission from
energy audit agency.
The implementation of recommendations suggested by energy audit agency in the
energy audit report of 10 No. of units for which energy audit had been carried out
during the year 2007-08 are implemented and due to which saving of approx. 24461730
KWH and 51027 MT Coal per annum is observed.
For the year 2009-10, the energy audit of 8 No. of units is planned and for which the
work is in progress.
2. Standardization:
Company has achieved ISO 9001 & ISO 14001 certification for all the Thermal Power
stations. The Company is in process of achieving the OHSAS- 18001:2007 for all
Thermal and Hydro Power stations.
3. Clean Development Mechanism:
The Company owns Gas Based Combined Cycle Power Plant of Capacity 219.067 MW
(Unit I – 106.617 MW & Unit II – 112.45 MW) at Dhuvaran and 374.57 MW capacity
at Utran. Also the Wind Energy Project of 10 MW capacity near Mandvi (Kutch) has
been commissioned by Company to provide clean power.
To mitigate the impact of climate change, the Company has got registered the Dhuvaran
CCPP as CDM project on 4.2.2008 and taken up CDM Project Development of Utran
CCPP with UNFCCC under Kyoto Protocol.
The crediting period for Dhuvaran starts from 10.02.2008. The initial & first periodic
verification for the period from 10.02.2008 to 30.04.2008 has been completed. The
second periodic verification for the period 1.5.2008 to 31.10.2008 is under progress.
The CDM Project development of Wind Energy Project at 10 MW capacity is taken up
by Gujarat Urban Development Corporation (GUDC), Gandhinagar.
21

(K) ENVIRONMENT, SAFETY AND TRAINING:

The Company is committed towards preservation of environment in and around surrounding
regions of the power plants. To look after the environment related activities, the Company
has formed Environment cell at corporate office and also at all thermal power stations. As a
part of corporate responsibility towards environment preservation, the Company is committed
for implementation of various statutory requirements.
For the control of various sources of pollution generated from the power plant the Company
has installed pollution control systems since commissioning of the power plants. High efficiency
Electro Static Precipitators are provided for control of particulate matter (PM) generated due
to burning of coal in boiler in all the power generating units. ESPs are the best available
technology at present to control ash particles from the gas. The Company has also installed
flue gas conditioning system at some of the units of Ukai TPS, Wanakbori TPS and Gandhinagar
TPS. This system includes conditioning of flue gas with the help of NH3 before the ESPs to
improve the collection of fine ash particles in ESPs. This has helped in reduction of particulate
matter emission into atmosphere. However, for future reduction of PM at these TPSs,
Company has published note as expression of interest. For control of Nitrogen Oxides Coal
based thermal power stations are provided with low NOx burners and Gas turbines are
provided with DM water injection and OFA. Opacity meters are installed at all the units for
continuous measurement of Particulate matters emitted into atmosphere.
All the Thermal Power Stations of the Company are ISO 9001 and ISO 14001 certified. The
Company is in the process of obtaining OHSAS 18001:2007 certification for maintaining the
Occupational Health and Safety Systems for all the thermal and hydro power stations.
Greenbelt is designed properly around the emission source, serving thereby a second line of
pollution control. The trees having dense spreading canopy are selected among the locally
known indigenous varieties for sufficient width. A massive plantation work has been done in
the premises of power stations and residential colony. Plantation is also carried out on
abandoned ash dyke area to prevent fugitive dust emission.
The Company has identified the possibility of recirculation and reutilization of liquid waste
generated for the power plants and implemented interconnection of various effluent drains
thereby reducing numbers of effluent discharge points and also reutilization of waste water in
plant uses thereby reduction of fresh water requirements. In new power projects the
Company is planning for high concentration ash slurry disposal system which requires less
quantity of water.
SAFETY
The Company is in the process of carrying out safety audit of all the Power Stations through
competent auditors like National Safety Council etc.
TRAINING
To enhance employee productivity and in house skills, intensive thrust is given to impart
training to maximum number of employees in all the cadres i. e. class I to class IV. Total 3763
employees imparted training during the year.
(L) e-URJA SYSTEM:
e-Urja system is the IT based system for Effective Enterprise Resource Management by
integration of different resources of an organisation. Different modules are designed based
on functional requirement in all areas of organisation. The main modules are HR module,
Account & Payable module, Purchase module, Inventory Management module, Oracle Process
22

Manufacturing module, Enterprise Asset Management module, Project module, Fuel

Management module etc. The e urja system is implemented across the company.
All the modules are made functional and the progress of all the modules is continuously
reviewed and monitored. The usage of e-Urja system has contributed to overall improvement
in all the areas of Company by saving time, reducing duplication, availability of data of all
Stations at finger tips. The implementation of e-Urja results in increase in employee productivity
and the streamlining of processes help in timely procurement of materials & effective decision
making.
(M) JOINT VENTURE PROJECTS:
As you are aware that the Company has joined hands together with the Generation Company
of the State of Maharashtra i.e. Mahagenco for joint allocation of coal blocks for development
and sharing of coal. The Ministry of Coal, Government of India has approved allotment of
two coal blocks viz. (i) Mahanadi and (ii) Machhakata jointly to the Company and MAHAGENCO
for the Captive Mining which would hold the mining lease from the Government of India and
to undertake all the activities for the development of allotted coal mining blocks. The Company
called “Mahaguj Collieries Ltd.” (MGCL) is formed as a joint venture Company and incorporated
and registered with the Registrar of Companies, Mumbai. The development activities of the
mining blocks at Mahanadi and Machhakata blocks have been undertaken by MGCL with a
target to provide required fuel linkage for the new project of Ukai Extension (1x500 MW) and
Wanakbori Extension (1x800 MW). MGCL had invited tender for appointment of Mine
Development Operator (MDO). Accordingly the necessary LoI has already been issued to
the Mine Development Operator and the required work has already been started at site.
(N) INSURANCE:
The Company has covered the assets of Five Power Plants viz. Gandhinagar Unit-V, Wanakbori
Unit-VII, Dhuvaran GBCCPP I & II and Utran GBCCPP-I under Industrial All Risk Policy since
their inception. The Company has also covered the assets of the transferred Power Plants of
erstwhile GEB under appropriate insurance coverage as per the policy followed by erstwhile
GEB.
(O) CHAIRMAN:
Pursuant to Notification No. GUV-1108-1336-K dated 10.12.2009 of Government of Gujarat
and letter No. GSECL/CHAIRMAN/2009/269 dated 10.12.2009 of GUVNL, Shri D.J. Pandian,
IAS was appointed as Chairman of the Company in place of Shri S. Jagadeesan, IAS, who
has tendered his resignation.
(P) DIRECTORS:
As per the provisions of the Companies Act and the Articles of Association of the Company,
Shri I.P. Gautam, IAS and Shri H.P. Desai shall retire by rotation at the forthcoming Annual
General Meeting and are eligible for re-appointment as Directors of the Company. The
Company has received a letter No. GUV-102009-4653-K-I dated 05.10.2009 of Government
of Gujarat nominating Shri C.L. Meena, IAS, Secretary (Expenditure) as Director on the
Board of the Company in place of Shri M.A. Bhatt.
(Q) AUDITORS:
The Company is a Government Company under the provisions of Section 617 of the Companies
Act, 1956. The Comptroller and Auditor General of India, New Delhi, vide their letter No. CA.
V/COY/GUJARAT-GSECL (1) / 519 dated 09.09.2009 has appointed M/s. P. Parikh & Associates,
23

Chartered Accountants, Vadodara as Statutory Auditors of the Company to audit the accounts
for the current financial year i.e. 2009-10.
(R) AUDITOR’S REPORT:
The notes to the accounts referred to in the Auditor’s Report are self-explanatory and
therefore, do not call for any further comments. The Report/Comments of the Comptroller
and Auditor General of India pursuant to Section 619(u) of the Companies Act, 1956 are
awaited and the same shall be sent as such as received alongwith management replies to
each comment as an Addendum forming part of this Report.
(S) COST AUDIT:
Subsequent to Department of Company Affairs notifying Cost accounting Records (Electricity
Industry) Rules, 2001 in December 2001, the Cost Audit Branch of the Ministry of Company
Affairs issued orders dated 23rd December 2005 directing audit of the cost accounts maintained
at the Company’s power stations, from the financial year 2005-06 onwards.
M/s. Kailash Sankhlecha & Associates, Vadodara, were appointed as the Cost Auditors for the
financial year 2008-09 with the approval of the Central Government for conduct of cost audit
and have submitted the Cost Audit Report in the terms of the said orders and Cost Audit
(Report) Rules, 2001.
(T) AUDIT COMMITTEE:
Pursuant to the provisions of 292A of the Companies Act, 1956, the Audit Committee reviewed
the present Internal Control System, Internal Audit Report of the Internal Auditors of the
Company, their observations and Company’s response thereto and Action Taken Report, for
the year under review.
The Audit Committee of the Board of Directors of the Company comprises of the Directors
namely, Shri I.P. Gautam, IAS, the Chairman of the Committee, appointed in place of Prof. N.
Venkiteswaran who has tendered his resignation and other Directors are Shri L. Chuaungo,
IAS, Shri H.P. Desai & Shri P.H. Rana.
The meetings of the Audit Committee were held on 25.06.2008, 18.08.2008, 29.11.2008 &
07.10.2009 to review Internal Control System and Internal Audit Report of the Internal
Auditors of the Company. The Audit Committee considered and reviewed the Audited Annual
Accounts of the Company for the financial year 2008-09 along with the Audit Report on the
same by the Statutory Auditors of the Company, for submission to the Board of Directors for
its consideration and approval, in their meeting held on 8th October, 2009.
(U) DISCLOSURES:
[a] Particulars of Employees:
There was no employee earning an aggregate remuneration of Rs.2,00,000/- per
month or Rs.24,00,000/- per annum and hence the information in this regard be
treated as NIL.
[b] Technology Absorption:
The disclosure of particulars as per Form - B is given in the Annexure.
[c] Foreign Exchange Earning and Outgo:
During the year under review, there was no foreign exchange earning and the outgo
was of Rs.468.72 Crores.
24

[d] Directors’ Responsibility Statement:

Pursuant to Provisions of amended Section 217 (2AA) of the Companies Act, 1956 the
Directors hereby confirm as under: -
1 that in the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material departures.
2 that the Directors have selected such accounting policies and applied them
consistently and made judgments and estimates that are reasonable and prudent
so as to give a true and fair view of the state of the affairs of the Company at the
end of the financial year and of the Balance Sheet as at 31st March, 2009 and of
the Profit & Loss account for the same period.
3 that the Directors have taken proper and sufficient care for the maintenance of
adequate accounting records in accordance with the provision of the Act, for
safeguarding the assets of the Company and for preventing and detecting fraud
and other irregularities.
4 that the Directors have prepared the annual accounts on a going concern basis.
(V) ACKNOWLEDGEMENT:
Your Directors place on record their grateful appreciation of the guidance, support and assistance
extended by the Government of Gujarat and the erstwhile Gujarat Electricity Board. The
Board records with appreciation the unstinted support received from the Government of India
in particular the Central Electricity Authority, Government of Gujarat, Financial Institutions and
Banks like IDBI, IFCI and IIBI, Power Finance Corporation Ltd., State Bank of India, Central
Bank of India, Bank of Baroda, Bank of India, Union Bank, Indian Overseas Bank, Oriental
Bank of India and Vijaya Bank for their valuable support in respect of the Projects under
implementation and other facilities. The Board also appreciates the efforts and dedication to
duties by officers and staff at all levels of the Company.
For and on behalf of the Board

Registered Office:
Vidyut Bhavan,
Race Course,
Vadodara-390 007. Sd/-
(D. J. Pandian, IAS)
Date: 08/12/2009. Chairman
25

ANNEXURE TO DIRECTORS’ REPORT
FORM – B
Disclosure under the Companies (Disclosure of particulars in the Report of Board of
Directors) Rules, 1988.
Disclosure of particulars with respect to Technology Absorption.
[a] Research & Development (R&D)
1. Specific area in which R&D carried : ----

out by the Company.
2. Benefits derived as a result of the : ----
above R&D.
3. Future plan of action. : ----
4. Recurring Expenditure. : ----
[b] Technology absorption, adoption & innovation
1. Efforts, in brief, made towards : The Company is making continuous efforts

technology absorption, adaptation and for absorption of latest technology in the
innovation. field of Operation and Maintenance of
Thermal Power Plants. Frequent visits to
operating thermal power plants are arranged
for enhancement of technical knowledge.
Latest WS-POSE system has been adopted
for Control & Instrumentation of the plant.
In this system, all controls are made through
Micro Processor based computerized system
resulting in maximised efficiency. This
system also includes SOE & DAS by which a
computerized analysis can be obtained for
any occurrence in the plant.
2. Benefits derived as a result of the : a.) Reduction in total shutdown time of the
above efforts. plant, which results in higher PLF and
availability of the plant, leading to better
performance.
b.) Enables the Company to carry out plant
maintenance with in-house expertise in
maintenance.
3. Imported Technology : ----
26

ADDENDUM TO DIRECTORS’ REPORT

Comments of the Comptroller & Auditor General of India under Section 619(4) of the
Companies Act, 1956 on the Accounts of Gujarat State Electricity Corporation Limited,
Vadodara for the year ended 31 March 2009 and Replies of the Company.
Comments of C & AG Reply by Company
(A) Profit & Loss Account

1.Employee cost (Schedule-15)
Discount for prompt payment of bills
(Rs.174.55 crores).
The above balance represents rebate given to The Company receives payment towards day to day
Gujarat Urja Vikas Nigam Limited, Vadodara (the expenditure from GUVNL ( the Holding Company) in
Holding Company) for payment of bills raised addition to payment directly made for GSECL, to banks,
during 2008-09. Rebate was payable if payment Financial Institutions and other agencies.
is made within seven days of raising the bill as
per cl ause 7.5 of the power purchase The net effect of both the transaction is the amount
agreement(s) (PPA). However, during review of payable by Company to GUVNL at the end of every
the payments received by the Company, it was month. Thus, rebate extended by the company is in
observed that neither the whole nor the part order.
payments for the bills raised were received within
the said period of seven days. Therefore, as per
PPA terms the Company has incorrectly
recognized rebate of Rs.174.55 crore for prompt
payment. This has resulted in understatement
of profit and understatement of debtors by
Rs.174.55 crore.
2. Unsecured Loan (Schedule 5 )
Term Loan from Financial Institutions
(Rs.2546.61 crore)
The Company has disclosed interest accrued and Though it has no effect on profit & loss or
due Rs. 2.68 crore on the above loan along with liabilities of the Company, it is noted for
interest accrued and due on secured loan. This implementation in future.
has resulted in understatement of interest
accrued and due for unsecured loans and
overstatement of interest accrued and due of
secured loan by Rs. 2.68 crore.
For and on behalf of For and on behalf of the Board of Directors

Comptroller & Auditor General of India Gujarat State Electricity Corporation Limited
(D. J. Pandian)
Accountant General Chairman
27

Comments of the Comptroller and Auditor General of India under section 619(4) of the
Companies Act, 1956 on the accounts of Gujarat State Electricity Corporation Limited
for the year ended on 31 March 2009.
The preparation of financial statements of Gujarat State Electricity Corporation Limited for the year
ended 2009 in accordance with the financial reporting framework prescribed under the Companies
Act. 1956 is the responsibility of the management of the company. The statutory auditor appointed
by the Comptroller and Auditor General of India under Section 619(2) of the Companies Act. 1956 is
responsible for expressing opinion on these financial statement under section 227 of the Companies
Act, 1956 based on independent audit in accordance with the auditing and assurance standards
prescribed by their professional body the Institute of Chartered Accountants of India. This is stated
to have been done them vide their Auditor Report dated 08 October 2009.
I, on the behalf of the Comptroller and Auditor General of India, have conducted a supplementary
audit under section 619(3) (b) of the Companies Act, 1956 of the financial statements of Gujarat
State Electricity Corporation Limited for the year ended 2009. This supplementary audit has been
carried out independently without access to the working papers of the statutory auditors and is
limited primanly to inquiries of the statutory auditors and company personnel and a selective
examination of some of the accounting records. Based on my supplementary audit, I would like to
highlight the following significant matters under section 619(4) of the Companies Act, 1956 which
have come to my attention and which in my view are necessary for enabling a better understanding
of the financial statements and the related Audit Report.
Comments on Profitability
Profit & Loss Account
Expenditure
Employees cost (Schedule 15)
Discount for prompt payment of bills (Rs. 174.55 Crore)
The above balance represents rebate given to Gujarat Urja Vikas Nigam Limited, Vadodara (the
Holding Company) for payment of bills raised during 2008-09. Rebate was payable if payment is
made within seven days of raising the bill as per clause 7.5 of the power purchase agreement(s)
(PPA). However, during review of the payments received by the Company, it was observed that
neither the whole nor the part payments for the bills raised were received within the said period of
seven days. Therefore, as per PPA terms the Company has incorrectly recognised rebate of Rs.
174.55 crore for prompt payment. This has resulted in understatement of profit and understatement
of debotors by Rs. 174.55 crore.
Comments on Disclosure
2. Unsecured Loan (Schedule 5)
Term Loan from Financial Institution (Rs.2,546.61 Crore)
The Company has disclosed Interest accrued and due Rs. 2.68 crore on the above loan along
with interest accrued and due on secured loan. This has resulted in understatement of interest
accrued and due for unsecured loans and overstatement of interest accrued and due of
secured loan by Rs. 2.68 crore.
For and on behalf of the
Comptroller & Auditor General of India
Dated : 31/12/2009
Place : Ahmedabad Accountant General
28

AUDITORS’ REPORT TO MEMBERS OF GUJARAT STATE ELECTRICITY

CORPORATION LIMITED
1. We have audited the attached Balance Sheet of Gujarat State Electricity Corporation Limited as
at 31st March, 2009 the Profit and Loss Account and the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with the auditing standards generally accepted in India.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
3 As required by the Companies (Auditor’s Report) Order, 2003 as amended by the Companies
(Auditor’s Report) (Amendment) Order, 2004, issued by the Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said Order.
4. Without qualifying our opinion, attention is invited to the following:
(a) As a part of efforts towards restructure of power sector, the Company has been promoted
by erstwhile Gujarat Electricity Board (GEB) (now known as Gujarat Urja Vikas Nigam
Limited (GUVNL) with effect from 1/4/2005) in August, 1993, GUVNL held 100% equity
shares of the Company throughout the year under consideration. The Company has
entered into Inter Company Agreements and Facility Sharing Agreements with GUVNL and
its subsidiary companies for working capital and Term Loans and sharing of certain common
facilities viz. Group Gratuity Contribution to LIC. All such arrangements results into multifaceted
relation of the Company with GUVNL and other successor entities of holding company.
The financial statements are prepared on Going Concern principles and performance of
the Company for the year under consideration has been determined after reviewing
several long term arrangements of the Company with GUVNL and its subsidiary Companies.
(b) The Government of Gujarat in pursuance to the scheme called “Gujarat Electricity Industry
Reorganization Transfer of Gandhinagar Thermal Power Station Scheme 2003” and “Gujarat
Electricity Industry Reorganization and Comprehensive Transfer Scheme, 2003” has
transferred and vested all the assets & liabilities and preceedings of the specified existing
and under implementation power stations of GEB to the Company with effect from 1st
April 2005.
In accordance with the above referred schemes, the State Government has notified the
values of the assets and liabilities at which these undertakings are transferred to and
vested in the Company.
(c) Upon reconciliation of balances in the accounts of GUVNL, the company has identified and
matched the receipt of funds during the year under review against the invoices of sale of
electricity. In response to demand of GUVNL and in pursuance of power purchase agreement
the company has allowed discount for prompt payments of bills to the tune of Rs. 17455.10
lacs to GUVNL
29

5. Particular attention is drawn to the following:

(a) Note No. 1(a) of Schedule 20 to the financial statements regarding the non registration of
charge on the transferred assets of the Company.
(b) Note No. 1(b) of Schedule 20 to the financial statements regarding classification of Loans
transferred by GUVNL under FRP on 1st April 2005 which has been considered and
classified as unsecured loans in financial statements.
(c) Note No. 4(a) of Schedule 20 regarding provision for depreciation for the year at the rates
specified by the Central Electricity Regulatory Commission (CERC) as against the rates as
per Schedule XIV to the Companies Act, 1956 resulting in to provision of depreciation lower
by Rs. 78.68 crores and over statement of profit by like amount.
(d) Note No. 12 of Schedule 20 to the financial statements in respect of Balances due to /
from suppliers, railways, contractors, collieries, creditors, advances & receivables / payable
being subject to confirmation and / or reconciliation with the parties.
6. Further to our comments in the Annexure referred to above, we report that :
(a) we have obtained all the information and explanations which, to the best of our knowledge
and belief, were necessary for the purposes of our audit;
(b) in our opinion, proper books of account as required by law have been kept by the Company
so far as appears from our examination of those books;
(c) the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement dealt with
by this report are in agreement with the books of account;
(d) in our opinion, the Balance Sheet, the Profit and Loss Account and the Cash Flow Statement
dealt with by this report comply with the Accounting Standards referred to in sub-section
(3C) of Section 211 of the Companies Act, 1956;.
(e) The Company, being a Government Company, in view of the Notification No.GSR 829(E)
dated 21st October 2003 issued by the Government of India, the provisions of clause (g)
of sub- section (1) of section 274 of the Companies Act, 1956, are not applicable to the
Company.
(f) in our opinion and to the best of our information and according to the explanations given to
us, the said accounts, subject to para 5 above, read together with notes thereon give the
information required by the Companies Act, 1956 in the manner so required and give a true
and fair view in conformity with the accounting principles generally accepted in India :
(i) in the case of the Balance Sheet, of the state of affairs of the Company as at 31st
March 2009;
(ii) in the case of the Profit and Loss Account, of the profit of the Company for the year
ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
For G. K. Chokshi & Co.,
Chartered Accountants
sd/-
(Sandip A. Parikh)
PLACE : Ahmedabad Partner
DATE : 08th October, 2009 M. No. 40727
30

ANNEXURE TO THE AUDITORS REPORT

[Referred to in paragraph 3 of the Auditors’ Report of even date to the members of Gujarat State
Electricity Corporation Limited on the financial statements for the year ended 31st March, 2009]
i. (a) The Company has maintained proper records showing full particulars including quantitative
details and situation of Fixed Assets.
(b) The Company has a programme of physical verification of its Fixed Assets over a period
of three years; which in our opinion is reasonable having regard to the size of the Company
and nature of its assets. In accordance with this programme, certain Fixed Assets have
been physically verified by the management through firm of Chartered accountants specially
appointed for the purpose at power stations during the year under review and according
to information and explanation given to us, no material discrepancies have been noticed
on such verification.
(c) As per the information and explanation given to us, during the year the Company has not
disposed off any substantial part of Fixed Assets that would affect the going concern
assumption.
i (a) The inventory comprises of coal, oil and stores and spares has been physically verified by
the management at reasonable intervals except inventory of stores and spares at Ukai
Thermal Power Station. In our opinion, the frequency of verification is reasonable, looking
to the size of the Company.
(b) In our opinion and according to information and explanation given, the procedure of
physical verification of inventory followed by the management is reasonable and adequate
in relation to the size of the Company and nature of its business.
(c) In our opinion and according to explanation given to us, the Company has maintained
proper records of inventory, except at Wanakbori and Kutchh Lignite Thermal Power
Stations where maintenance of inventory records needs to be strengthened. The
discrepancies noticed on physical verification of inventory have been properly dealt with by
the Company in the Books of Accounts.
iii. (a) In our opinion and according to the information and explanation given to us, the company
has not granted any loans secured or unsecured to companies, firms or other parties
covered in the register maintained under section 301 of the Companies act, 1956.
In view of (a) above, sub-clauses (b), (c) and (d) are not applicable.
(e) In our opinion and according to the information and explanation given to us, the company
has not taken any loans, secured or unsecured from companies, firms or other parties
covered in the register maintained under section 301 of the Companies act, 1956.
In view of (e) above, sub-clauses (f) and (g) are not applicable.
On the strength of a legal opinion obtained by the Company, it has represented that the
provisions of section 299, 300 and 301 of the Companies act, 1956 are not attracted to
the transactions entered in to by the company with GUVNL and its subsidiaries and are
not liable to be listed in the register maintained under section 301 of the Companies act,
1956.
iv. In our opinion and according to the information and explanation given to us, there are adequate
internal control procedures / system commensurate with the size of the Company and the
nature of its business with regard to purchase of inventory, fixed assets and with regard to sale
of electricity and services. However, the controls regarding maintenance of inventory records,
prompt recording of inventory and financial transactions and settlement of advance payments
31

to contractor / suppliers needs to be strengthened.

Further, on the basis of our examination of the books and records of the Company carried out
in accordance with the auditing standards generally accepted in India, we have neither come
across nor have been informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
v. (a) The Company has entered into contract / arrangements with GUVNL being the holding
Company. As per the information and explanations given to us and based on the legal
opinion obtained by the Company, the transactions pursuant to these contracts and / or
arrangement are not falling under the provisions of section 301 of the Companies Act,
1956 and accordingly these transactions are not entered into the Register maintained
under section 301 of the Companies Act, 1956.
In view of (a) above, sub-clause (b) is not applicable.
vi. In our opinion and according to the information and explanations given to us, the Company
has not accepted any deposits within the meaning of Section 58A, 58AA or any other relevant
provision of the Companies act, 1956, and the rules framed there under.
vii. The Company has an in house Internal Audit System and it has also assigned internal audit
assignments to practicing firms of Chartered Accountants and this arrangement in conjunction
with the existing internal control and checks is in our opinion commensurate with the size of the
Company and the nature of its business.
viii. We have reviewed the books of account maintained by the Company, pursuant to the Rules
made by the Central Government of India, for the maintenance of cost records under clause
(d) of sub section (1) of section 209 of the Companies act, 1956 and are of the opinion that
prima facie, the prescribed accounts and records have been made and maintained.
We have not, however, made a detailed examination of the records with a view to determine
whether they are accurate or complete.
ix. According to the information and explanation given to us in respect of statutory and other
dues:
(a) The Company is generally regular in depositing undisputed statutory dues, including Provident
Fund, investor Education and Protection Fund, Income Tax, Wealth Tax, Service Tax,
Custom Duty, Cess and other statutory dues with the appropriate authority during the
year. According to the information and explanations given to us, there are no undisputed
amounts payable in respect of such statutory dues which have remained outstanding as
at 31st March, 2009 for a period more than six months from the date they became
payable.
(b) According to the information and explanation given to us, there are no dues of Income
Tax, Customs Duty, Wealth Tax, Service Tax and Cess, which have not been deposited
on account of any dispute.
x. The Company does not have any accumulated losses as at the end of the financial year. The
company has not incurred cash losses during the current year and the immediately preceding
financial year.
xi. Based on our audit procedures and on the information and explanation given by the
management, we are of the opinion that the Company has not defaulted in repayment of
dues to financial institutions and banks in respect of the existing loans, which were originally
raised by the Company. As regards the loans transferred from GUVNL, we have been informed
that the same have been serviced by GUVNL on behalf of the Company and in view of the
32

above we are not in a position to opine whether the Company has defaulted in repayment in
dues to Financial Institutions and Banks.
xii. Based on our examination of documents and records and according to the information and
explanations given to us, we are of the opinion that the Company has not granted any loans
and / or advances on the basis of security by way of pledge of shares, debentures and other
securities.
xiii. The provisions of any special statues applicable to chit fund, nidhi and mutual benefit funds/
societies are not applicable to the Company.
xiv. Based on examination of the accounts and as per the information and explanation given to us,
the Company is not dealing or trading in shares, securities, debentures and other investments.
xv. In our opinion and according to the information and explanation given to us, the company has
not given any guarantee in respect of loans taken by others from banks or financial institutions.
xvi. (a) Term loans raised by GUVNL on behalf of the company have been accounted in the books
of the Company by debit to GUVNL Account and the repayments and interest thereon are
reimbursed by the company to GUVNL by crediting GUVNL Account without any actual
cash inflow or outflow. In view of the above and in absence of the relevant information as
regards the purpose and other terms and conditions of loans availed through GUVNL, we
are unable to comment on the application of such loans for the purpose for which they
were obtained.
(b) In case of loans directly raised by the Company during the year, on the basis of records
examined by us, and relying on the information compiled by the Company for Co-relating
funds raised for the end use of the term loan, the Company has, prima facie, applied the
loans for the purpose for which they were obtained.
xvii. The Company has raised its allocated term loans through GUVNL and for the reasons given in
clause xvi above, it is not possible for us to ascertain whether funds raised on short term basis
have been used for long term investment. However, funds raised by the Company on long
term basis have been applied for long term investment.
xviii. Based on a legal opinion obtained by the company, the provisions of section 301 of the
Companies Act, 1956 are not applicable to the company. In view of the above, this clause is
not applicable.
xix. The liabilities under the bonds issued by the erstwhile GEB transferred to the Company are
secured either by a charge over the assets and / or by a guarantee by Government of
Gujarat.
xx. The Company has not raised any money by public issue during the year.
xxi. We have informed that the vigilance department of the company is regularly investigating
frauds and other irregularities involved in the company’s transaction. To the best of our knowledge
and belief and according to the information and explanation given to us, no fraud on or by the
Company has been noticed or reported during the year.
For G. K. Chokshi & Co.,
(Sandip A. Parikh)
PLACE : Ahmedabad Partner
DATE : 08th October, 2009 M. No. 40727
33

BALANCE SHEET AS AT 31ST MARCH , 2009

[ RS. IN LAKHS]
PARTICULARS SCHEDULE
AS AT 31ST
AS AT 31ST MARCH, 2009
MARCH, 2008
SOURCES OF FUNDS
Shareholders’ Funds
Share Capital 1 91 297.24 57 330.01
Equity Pending Allotment 2 36 956.60 1 43 168.94
Reserves and Surplus 3 1 53 661.18 47 933.57
2 81 915.02 2 48 432.52
Loan Funds
Secured Loans 4 2 35 432.44 1 34 488.75
Unsecured Loans 5 2 54 661.49 2 23 105.20
4 90 093.93 3 57 593.95
Total 7 72 008.95 6 06 026.47
APPLICATION OF FUNDS
Fixed Assets 6
Gross Block 7 89 545.95 7 43 612.42
Less: Accumlated Depreciation 2 67 426.23 2 31 468.37
Net Block 5 22 119.72 5 12 144.05
Capital Work in Progress 3 13 746.81 1 45 210.86
8 35 866.53 6 57 354.91
Investments 7 2 052.00 2 052.00
Current Assets, Loans and Advances
Inventories 8 39 940.05 34 154.90
Sundry Debtors 9 1 17 381.99 62 930.49
Cash and Bank Balances 10 120.83 569.23
Loans and Advances 11 42 321.32 73 018.63
1 99 764.19 1 70 673.25
Less:Current Liabilities and Provisions 12
Current Liabilities 2 53 381.83 2 15 780.14
Provisions 12 291.94 8 273.54
2 65 673.77 2 24 053.68
Net Current Assets (65 909.58) ( 53 380.44)
Total 7 72 008.95 6 06 026.47
Significant Accounting Policies 19
Notes to the Financial Statements 20
Schedules referred to above and notes attached thereto form an integral part of Balance Sheet
As per attach report of even date
FOR G. K. CHOKSI & CO. FOR AND ON BEHALF OF THE BOARD
SANDIP A. PARIKH S. JAGADEESAN P. H. RANA L. CHUAUNGO
Partner Chairman Managing Director Director
Mem. No. 40727
R.G. SHETH V. P. JANI
Sr. Chief General Manager (F & A) Company Secretary
Place: Ahmedabad Place: Vadodara
Date: 08-10-2009 Date: 08-10-2009
34

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH , 2009
[ RS. IN LAKHS]
PARTICULARS SCHEDULE
NUMBER Year ended Year ended
31st March, 2009 31st March, 2008
INCOME
Sale of Electrical Energy 7 10 122.63 6 20 473.87
Other Income 13 22 229.02 12 913.64
7 32 351.65 6 33 387.51
EXPENDITURE
Generation and Other cost 14 6 13 054.40 5 24 025.68
Employees Cost 15 28 342.51 36 789.60
Administrative and Other Expenses 16 21 582.15 7 422.05
6 62 979.06 5 68 237.33
Profit before depreciation and interest 69 372.59 65 150.18
Interest 17 27 859.07 28 043.62
Depreciation and impairment 33 371.68 27 764.00
61 230.75 55 807.62
Profit before prior period adjustments 8 141.84 9 342.55
Prior Period Adjustments 18 (59.53) 2 507.88
Profit before tax 8 201.37 6 834.67
Provision for Taxation
Current 1 013.78 785.00
[Net of excess provision of earlier years
Rs. 11.29 lacs (P.Y. Rs. NIL)]
Wealth Tax 0.00 0.06
Fringe Benefit Tax 134.23 125.49
1 148.01 910.55
Profit after tax 7 053.36 5 924.12
Balance brought forward from earlier year 40 978.17 35 054.05
Balance carried to balance sheet 48 031.53 40 978.17
Earnings Per Share - Basic 0.77 1.03
Earnings Per Share - Diluted 0.59 0.88
Significant Accounting Policies 19
Notes to the Financial Statements 20
Schedules referred to above and notes attached thereto form an integral part of Profit and Loss Account
Mem. No. 40727
Date: 08-10-2009 Date: 08-10-2009
35

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2009
[ RS. IN LAKHS]
PARTICULARS YEAR ENDED YEAR ENDED
31ST MARCH, 2009 31ST MARCH, 2008
A. CASH FLOW FROM OPERATING ACTIVITIES
Net Profit/(Loss) before Tax 8201.37 6834.67
Add/(Less) : Adjustments for
Profit on sale of Fixed Asset (1876.99) (0.19)
Depreciation 33371.68 27764.00
Interest and Guarantee Fees 27859.07 28043.62
Interest/Dividend received (141.96) (79.25)
Prior period adjustments related to Investing 1249.41 1888.31
& Financing Activities
Operating Profit before Working Capital Changes 68662.58 64451.16
Add/(Less) : Adjustments for working capital changes
Trade & Other Receivables (54241.41) (35958.09)
Inventories (5785.15) 1620.83
Trade Payables and other liabilities 39845.48 28326.54
Loans and Advances 31450.57 13363.63
Cash Generated from operations 79932.07 71804.07
Direct taxes paid (Net of netfunds) (952.13) (1708.81)
Net cash generated from operations : 78979.94 70095.26
B NET CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Fixed Assets (including interest cost) (213716.92) (104024.03)
Proceeds from Sale of Fixed Asset 1948.36 528.21
Interest/Dividend received 141.96 79.25
Investment 0.00 0.00
Net cash used in investing activities : (211626.60) (103416.57)
C CASH FLOW FROM FINANCING ACTIVITIES
(Repayment)/Proceeds from borrowings 132499.98 44432.26
Increase / (Decrease) in Equity 26956.60 10000.00
Capital Grant received from Government of Gujarat 0.00 3817.62
Interest and Guarantee Fees paid (27258.32) (28945.04)
Net cash generated from financing activities : 132198.26 29304.84
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (448.40) (4016.47)
CASH AND CASH EQUIVALENTS AS AT APRIL 1, 2008 569.23 4585.69
CASH AND CASH EQUIVALENTS AS AT MARCH 31, 2009 120.83 569.23
Notes 1. Purchase of Fixed Assets includes the movement in Capital Work-in-progress.
2. Previous year figures have been regrouped, reclassified and reworked wherever necessary for comparative purpose.
Mem. No. 40727
Date: 08-10-2009 Date: 08-10-2009
36

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH , 2009
SCHEDULE: 1
SHARE CAPITAL
[ RS. IN LAKHS]
PARTICULARS As at 31st As at 31st
March, 2009 March, 2008
Authorised
350,00,00,000 (P.Y. : 350,00,00,000) Equity Share of Rs.10/- each 3 50 000.00 3 50 000.00
Issued, Subscribed and Paid up
912,972,424 (P.Y. : 573,300,070) Equity Shares of Rs 10/- each 91 297.24 57 330.01
Total 91 297.24 57 330.01
Note:
1 Of the above, 912,972,424 (P.Y.573,300,070) Equity Shares are held by
“Gujarat Urja Vikas Nigam Ltd.”, the holding Company (GUVNL).
2 Of the above 330,672,354 Equity Shares of Rs. 10/- each have been
issued at premium in consideration for transfer of genaration undertakings
of erstwhile GEB (now GUVNL) as referred to in Note no. 2 of Schedule - ‘20’.
3 Of the above 44,40,00,070 Equity Shares of Rs. 10/- each were allotted at
par to erstwhile GEB (now GUVNL) on conversion of Unsecured Loan
amounting to Rs. 44,400.01 Lacs.
SCHEDULE: 2
EQUITY PENDING ALLOTTMENT
[ RS. IN LAKHS]
(Refer Note no. 2 of Schedule no. 20)
Equity Share Pending Allocation 0.00 1 32 268.94
Equity Share Application Money 36 956.60 10 900.00
Total 36 956.60 1 43 168.94
SCHEDULE: 3
RESERVES AND SURPLUS
[ RS. IN LAKHS]
PARTICULARS As at 31st
As at 31st March, 2009 March, 2008
Capital Reserve (Capital Grant under FRP)
Opening Balance 6 955.40 3 137.78
Add : Addition during the Year 0.00 3 817.62
6 955.40 6 955.40
Less : Transfer / Adjusted during the year 527.46 0.00
6 427.94 6 955.40
Share Premium 99 201.71 0.00
(Refer note no. 2(a) of schedule No. 20)
Balance in Profit and Loss Account 48 031.53 40 978.17
Total 1 53 661.18 47 933.57
37


SCHEDULE: 4
SECURED LOANS
[ RS. IN LAKHS]
As at 31st March, 2009
March, 2008
(Refer Note No. 1 (a) of Schedule 20)
Term Loan from Financial Institution
Power Finance Corporation Limited 1 12 217.37 87 206.85
Rural Electrification Corporation Limited 81 519.72 38 443.88
1 93 737.09 1 25 650.73
Term Loan from Banks
Oriental Bank of Commerce 29 370.89 0.00
Kalupur Commercial Co. Op. Bank Ltd. 3 362.58 0.00
32 733.47 0.00
Working capital loans from Banks 8 414.22 8 486.74
Interest accrued and due 547.66 351.28
Total 2 35 432.44 1 34 488.75
NOTE:
1 The above term loans are secured by first charge by way of hypothication on the whole of the movable
properties of the company including its movable plant and machinery, machinery spares, tools and accessories
and other movables both present and future (save and except book debts) for following power generating
units namely :
(a) Ukai R & M Unit I & II
(b) Gandhinagar Unit I & II
(c) KLTPS Unit I & II
(d) Ukai Unit VI
(e) Sikka TPS Unit III & IV
(f) Utran CCPP - 374 MW
(g) Wind Mill 10 MW at Bayth
(h) Minor R & M Scheme of REC
The above term loans are further secured by way of mortgage on all immovable properities, both present
and future for the following power generating units namely :
(a) Gandhinagar Unit I, II, & IV
(b) Wanakbori Unit VII
(c) Utran
(d) Dhuvaran Unit I & II
(e) KLTPS Unit IV
(f) Ukai TPS Unit I & II
(g) Utran 370 MW
The loans for Gandhinagar Unit V, Wanakbori Unit VII & Utran are further guarenteed by the Guarantee of
Government of Gujarat.
2 The working capital loans from banks are secured by way of hypothication of all current assets of the
company viz. Coal, Oil, Comsumbale Spares and Stores, Bills receivables and Book debts.
3 Repayable within a year Rs.16,320.41 lacs (Previous year Rs. 13,388.09 lacs)
38


SCHEDULE: 5
UNSECURED LOANS
[ RS. IN LAKHS]
Power Finance Corporation Limited 19 545.82 25120.64
Gujarat State Financial Services 30 000.00 0.00
(Refer note no. 1 (a) of Schedule no. 20)
Loans transferred from GUVNL
(Refer note no. 1 (b) of Schedule no. 20)
Term Loan from Financial Institution :
Power Finance Corporation Limited 0.00 0.00
Bonds 74 185.46 88 374.66
Central Electricity Authority 9.46 9.46
Rural Electrification Corporation Limited 3 712.10 7 079.84
Gujarat State Financial Services 48 180.28 22 478.81
Gujarat Industries Power Company Limited 0.00 914.00
1 26 087.30 1 18 856.77
Term Loan from Banks :
Central Bank of India 895.26 2 266.34
Dena Bank 7 548.83 5 606.71
Union Bank of India 4 168.82 2 285.00
Allhabad Bank 3 656.00 4 341.50
Karnataka Bank 3 188.14 1 142.50
Indian Overseas Bank 4 905.20 6 498.19
Oriental Bank of Commerce 1 158.12 1 889.57
State Bank of India 20 641.99 23 718.49
State Bank of Saurastara 1 266.32 1 688.42
Bank of Baroda 21 596.30 21 274.10
Canara Bank 5 138.65 0.00
Karur Vysya Bank 1 284.66 0.00
75 448.29 70 710.82
2 01 535.59 1 89 567.59
Deferred payment Guarantee 3 580.08 8 416.97
Total 2 54 661.49 2 23 105.20
Note :
Amount repayable within a year Rs. 82,324.95 lacs (Previous year Rs. 54,862.00 lacs).
39

40
Schedules forming part of the Balance Sheet as at March 31, 2009
SCHEDULE - 6 : FIXED ASSETS
[ RS. IN LAKHS]
GROSS BLOCK (AT COST) DEPRECIATION & IMPAIRMENT NET BLOCK
Sr. PARTICULARS Deduction/ Up to Deduction/ Up to As at
As at As at As at
No. Additions Adjustment for the year Adjustment Impairment
01- 0 4- 08 (Refer note no. 31- 0 3- 09 31- 0 3- 08 (Refer note no. 31- 0 3- 09 31- 0 3- 09 31- 0 3- 08
1 below) 2 below)
1 Land 1 412.91 331.77 0.00 1 744.68 0.00 1.98 0.00 0.00 1.98 1 742.70 1 412.91
2 Buildings 33 571.92 23.32 47.87 33 547.37 9 080.63 931.12 (21.38) 0.00 9 990.37 23 557.00 24 491.29
3 Hydraulik Works 43 587.72 1 099.67 0.00 44 687.39 11 477.46 1 371.17 0.00 0.00 12 848.63 31 838.76 32 110.26
4 Other Civil Works 25 071.19 3 023.77 2.15 28 092.81 2 430.97 517.03 11.27 0.00 2 959.27 25 133.54 22 640.22
5 Plant and Machinery 4 86 795.70 20 238.50 966.43 5 06 067.77 1 76 491.10 20 024.60 2 604.03 0.05 1 99 119.78 3 06 947.99 3 10 304.60
6 Lines and Cable Net Works 4 357.23 139.66 0.00 4 496.89 931.45 143.50 ( 12.95) 0.43 1 062.43 3 434.46 3 425.78
7 Furniture and Fixtures 1 902.22 33.40 0.13 1 935.49 803.19 114.79 1.73 0.02 919.73 1 015.76 1 099.03
8 Office Equipments 1 399.41 132.19 13.68 1 517.92 314.97 86.08 ( 4.37) 13.90 410.58 1 107.34 1 084.44
9 Vehicles 616.68 30.03 20.89 625.82 426.97 70.18 7.85 0.00 505.00 120.82 189.71

10 Capital Spares at 1 35 888.50 26 304.66 0.00 1 62 193.16 29 511.63 10 096.83 0.00 0.00 39 608.46 1 22 584.70 1 06 376.87
Genaration Stations
7 34 603.48 51 356.97 1 051.15 7 84 909.30 2 31 468.37 33 357.28 2 586.18 14.40 2 67 426.23 5 17 483.07 5 03 135.11
11 Assets retired from 9 008.94 257.66 4 629.95 4 636.65 0.00 0.00 0.00 0.00 0.00 4 636.65 9 008.94
active use
Total : 7 43 612.42 51 614.63 5 681.10 7 89 545.95 2 31 468.37 33 357.28 2 586.18 14.40 2 67 426.23 5 22 119.72 5 12 144.05
Previous Year : 6 87 348.50 66 183.64 9 919.72 7 43 612.42 2 07 869.02 27 764.00 4 164.65 0.00 2 31 468.37 5 12 144.05
Note :
1 It includes cost of asstes sold, retired from active use and discarded assets.
2 It includes the amount of depreciation related to prior period resulted due to error in application of depreciation rates in earlier years for
certain class of assets.

SCHEDULE: 7
INVESMENTS (LOAG TERM, NON TRADE)
[ RS. IN LAKHS]
Quoted
Gujarat State Petronet Ltd. 550.00 550.00
55,00,000 Equity Shares of Rs. 10/- each fully paid
Gujarat Industries Power Company Limited 1 500.00 1 500.00
22,05,882 Equity Shares of Rs. 10/- each fully paid
at premium of Rs. 58/- per share
Unquoted
Mahaguj Collieries Ltd. (Joint Venture Company) 2.00 2.00
20,000 Equity Shahres of Rs. 10/- each fully paid Total 2 052.00 2 052.00
Note :
Aggregate Market value Rs.2980.88 lacs (Previous year Rs. 5,077.95 lacs)
SCHEDULE: 8
INVENTORIES
[ RS. IN LAKHS]
As valued and certified by the Management
(Refer para 9 of Schedule no. 19 for valuation)
Fuel 19 700.79 20 073.81
Store and Spares 13 557.28 11 249.92
Scrap Materials 2 176.63 2 078.46
Materials in Transit 4 505.35 752.71
[Including materials pending inspection Rs. 746.24 lacs (P.Y. Rs. 616.07 lacs)] -- --
Total 39 940.05 34 154.90
SCHEDULE: 9
SUNDRY DEBTORS
[ RS. IN LAKHS]
Unsecured, Considered good
Debts outstanding for the period exceeding six months 0.00 0.00
Others 1 17 381.99 64 618.16
1 17 381.99 64 618.16
Less :Provision for loss on dispute 0.00 1 687.67
Total 1 17 381.99 62 930.49
Note :
Due from holding company Rs.117171.90 lacs (Previous year Rs. 64308.48 lacs)
41


SCHEDULE: 10
CASH AND BANK BALANCES
[ RS. IN LAKHS]
Cash and Stamp on hand 3.11 26.10
Balance with Scheduled Banks
- In Current Accounts 49.97 220.16
Remittance in Transit 67.75 322.97
Total 120.83 569.23
SCHEDULE: 11
LOANS AND ADVANCES
[ RS. IN LAKHS]
(Unsecured, considered good unless otherwise stated)
Loan to Joint Venture Company 879.10 0.00
Advances recoverable in cash or in kind or for value to be received
Claims and receivables
Fuel related (Refer note no. 3 of Schedul-‘20’) 9 656.70 34 905.33
Others 0.72 5.84
Advances to / for and recoverable from
O & M Supplies and Works 22 116.11 27 764.66
Staff (including interest receivable) 4 322.66 4 076.29
Other (Including Employees) 36.16 7.44
Deposits / Balances with
Government and Local Bodies 159.28 451.44
Others 2 571.93 3 223.53
Advance Tax, TDS and FBT 3 438.96 2 475.61
Prepaid Expenses 199.36 305.60
Inter Company Receivable 10.64 61.25
Other Receivable 129.70 198.69
43 521.32 73 475.68
Less :Provision for doubtful advances 1 200.00 457.05
Total 42 321.32 73 018.63
Note :
Housing and Vehicle advances to staff are secured against respective assets
42

SCHEDULE: 12
CURRENT LIABILITIES & PROVISIONS
[ RS. IN LAKHS]
Current Liabilities
Liabilities for / related to
Fuel 29 886.46 66 296.02
Capital Supplies / Works 440.41 1 054.59
O & M Supplies / Works 6 030.50 4 066.77
Staff (inclusive of welfare schemes) 2 821.86 2 757.35
Expenses 17 275.85 16 309.41
Deposit and Retention from Supplier/Contractor 36 906.46 13 645.94
Interest accrued but not due 8 433.44 7 818.06
Inter Company Payable 1 23 171.12 79 286.24
Provision for Expenses 28 247.11 24 281.34
Other Liabilites 168.62 264.42
2 53 381.83 2 15 780.14
Provisions
Leave Encashment Liability 9 367.59 6 508.42
Taxation
Income Tax 2 789.91 1 764.91
Fringe Benefit Tax 134.23 0.00
Wealth Tax 0.21 0.21
12 291.94 8 273.54
Total 2 65 673.77 2 24 053.68
43

SCHEDULES FORMING PART OF PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED MARCH 31, 2009
SCHEDULE: 13
OTHER INCOME
[ RS. IN LAKHS]
PARTICULARS Year ended
Year ended March 31, 2009 March,31 2008
Interest (Tax deducted at Source Rs. 12.22 lacs)

On Fixed Deposit 59.31 40.53
On Advances to Staff 225.05 237.32
Others 1.17 0.00
285.53 277.85
Dividend 82.65 38.72
Operation and Maintenance 1 457.02 1 013.55
Penalties recovered from Suppliers / Contractors 647.45 454.68
Insurance Claims / Refunds 0.00 3 217.06
Income from sale of scrap / stores 119.11 464.32
Profit on sale of assets 1 876.99 0.19
Provisions no longer required 9 581.02 825.90
Miscellaneous Receipts 8 179.25 6 621.37
Total 22 229.02 12 913.64
SCHEDULE: 14
GENERATION AND OTHER COST
[ RS. IN LAKHS]
Materials/ Fuel consumed

Coal 4 27 292.08 3 86 933.37
Oil 72 137.35 53 902.06
Gas 75 309.84 52 537.68
Water 9 689.89 6 409.36
5 84 429.16 4 99 782.47
Other Fuel related cost (Refer note no.3(b) of Schedule ‘20’) 8 155.53 9 880.20
Lubricants and Consumables 1 272.36 677.20
Station Supplies 342.33 9770.22 137.41
Repair and Maintenance
Plant and Machinery 14 244.70 9 813.17
Building and Civil Works 4 334.45 3 650.31
Others 275.87 84.92
18 855.02 13 548.40
Total 6 13 054.40 5 24 025.68
44


SCHEDULE: 15
EMPLOYEES COST
[ RS. IN LAKHS]
PARTICULARS Year ended Year ended
March,31 2009 March,31 2008
Salary, Wages and Bonus 26 766.02 35 598.13

Contribution to Provident and Other Funds 1 855.18 1 812.91
Retirement and other benefits 6 062.32 2 987.90
Staff Welfare 1 075.12 857.32
35 758.64 41 256.26
Less: Allocated to Capital Works 7 416.13 4 466.66
Total 28 342.51 36 789.60
SCHEDULE: 16
ADMINISTRATION & OTHER EXPENSES
[ RS. IN LAKHS]
PARTICULARS Year ended Year ended
March,31 2009 March,31 2008
Rent, Rates and Taxes 209.43 267.63

Insurance 328.80 529.26
Communication 146.95 104.50
Fees and Legal 409.93 1 666.58
Auditor’s Remuneration 17.65 17.98
Travelling and Conveyance 161.50 166.51
Other Expenses 2 584.00 2 966.09
Discount for prompt payment of bills 17 455.10 0.00
Provision for bad advances / loss on dispute 742.95 2 144.72
22 056.31 7 863.27
Less: Allocated to Capital Works 474.16 441.22
Total 21 582.15 7 422.05
45


SCHEDULE: 17
INTEREST & FINANCIAL CHARGES
[ RS. IN LAKHS]
Interest
On Bonds and Other Fixed Loans 40 631.38 27 077.60
Others 200.73 5 415.31
40 832.11 32 492.91
Financial Charges
Guarantee Fees / Charges 998.22 1 302.35
Bank Charges and Commission 560.92 424.56
Others 135.63 0.00
1 694.77 1 726.91
42 526.88 34 219.82
Less:- Allocated to Capital Works 14 667.81 6 176.20
Total 27 859.07 28 043.62
SCHEDULE: 18
PRIOR PERIOD ADJUSTMENTS
[ RS. IN LAKHS]
Income
Other Income 600.04 107.49
Interest 863.58 1 196.45
Excess provision written back
Depreciation 80.85 1 313.36
Others 133.57 23.22
1 678.04 2 640.52
Expenses
Other generation cost 93.11 0.00
Material related cost 77.57 0.00
Employee cost 111.71 0.00
Head Office Supervision Charges 0.00 1 865.63
Miscellenous 0.00 129.58
Depreciation 1 315.63 2 408.92
Interest 14.63 123.47
Others 5.86 620.80
1 618.51 5 148.40
Net Expenses / (Income) : (59.53) 2 507.88
46

SCHEDULE – 19 SIGNIFICANT ACCOUNTING POLICIES
1. Basis Preparation of Financial Statements

(a) The Company is a Public Limited Company registered under the Provisions of Companies
Act, 1956 and has applied provision of the said act for preparation of its financial
statements, unless otherwise stated. The financial statements are prepared and presented
under the historical cost convention on accrual basis of accounting as going concern, in
accordance with the accounting principles generally accepted in India and comply with
the mandatory Accounting Standards issued by the Institute of Chartered Accountants
of India. Accounting policies have been followed consistently except stated specifically.
(b) The Government of Gujarat, under the provisions of the Gujarat Electricity Industry
(Reorganization and Regulation) Act, 2003 had framed the “Gujarat Electricity Industry
Reorganization and transfer of Gandhinagar Thermal Power Station Scheme, 2003” and
“ The Gujarat Electricity Industry Reorganization and Comprehensive Transfer Scheme,
2003” for the purpose of providing and giving effect to the comprehensive transfer and
vesting of all Assets, Liabilities and Proceedings of all the power stations of erstwhile
Gujarat Electricity Board in the Government and revesting the same in the Company.
The Government of Gujarat vide Notification No.GEB-1105-1749-K dated March 31,
2005, has declared the date of transfer under the schemes referred to above as final
with effect from 01/04/2005. In pursuance of the above Government notification and
the final transfer of functions and activities relating to, generation of power to the
Company, the entire operations have been undertaken by the Company (GSECL) with
effect from 01/04/2005.
The Government of Gujarat issued notification No.GHU-2006-91-GUV-1106-590-K dated
3rd October, 2006 notifying the Final opening balance sheet of the Company as on 01/
04/2005 containing the values of the assets and liabilities of the generation activities
which stood transferred from erstwhile Gujarat Electricity Board to the Company as
specified in Schedule ‘A’ appended to the said notification and the existing company’s
own undertaking as on 31/03/2005 as per the Financial Restructuring Plan (FRP) approved
by the Government of Gujarat. This opening balance sheet of the Company has been
accordingly incorporated as on 01/04/2005 in the books of accounts of the Company.
In accordance with the above notification, aggregate values, as on 01/04/2005, of the
blocks of Fixed Assets (gross values, accumulated depreciation and net value)
Investments, Current Assets, Long term and Short term loans and Current Liabilities of
generation undertaking (of eight Power Stations) of erstwhile Gujarat Electricity Board
stands transferred to company. The values of various assets and liabilities belonging to
the company (existing undertaking) as on 31/03/2005 have also been incorporated in
the books of accounts of the Company.
The Notification dated 03/10/2006 issued by the Government of Gujarat has not specified
the values of individual items of these Assets and Liabilities. The management has
therefore adopted following procedures for assigning values to individual items.
47

(i) The individual items of Fixed Assets have been assigned gross value as per the
Fixed Assets registers maintained at the Power Stations. The reduced amounts of
accumulated depreciation and the consequent enhanced net values under Transfer
Scheme vide Government Notification dated 3rd October, 2006 referred to above
have been allocated in accordance with the exercise carried out and the report
submitted by a firm of Chartered Accountants to the Company.
(ii) Long term and short term borrowings, which are directly identifiable with the
generation undertaking, have been transferred to the Company as such. However
the borrowings of erstwhile Gujarat Electricity Board that were common for generation,
transmission and distribution functions and not identifiable with any specific
undertaking have been apportioned by the Government of Gujarat and the total
amounts of long term and short term loans including the identifiable loans have
been transferred to the company at aggregate values respectively vide the
notification dated 03/10/2006 referred to above. In absence of specific Government
order for apportionment of Secured Loans under clause 3(2) of Gujarat Electricity
Industries (Reorganization and Regulation Act, 2003) or the Multilateral Facility and
Securities Sharing Agreement between Gujarat Urja Vikas Nigam Limited transferee
companies and Lenders, these loans have been considered as Unsecured allocated
Loans from Gujarat Urja Vikas Nigam Limited.
(iii) The investments held by erstwhile Gujarat Electricity Board pertaining to Company
have been identified and transferred to the Company at book values as on 31/03/
2005 as per erstwhile Gujarat Electricity Board’s Books of Accounts.
(iv) The aggregate values of Current Assets and Current Liabilities as per notification
dated 3rd October’06 have been divided and allocated to individual items of Current
Assets and Current Liabilities by the management on the basis of their respective
values (balances) on 31/03/2005 in the plant wise books of accounts / registers
of erstwhile Gujarat Electricity Board maintained at their Power Stations.
(v) The consideration specified in FRP notification dated 03/10/2006 for the transfer of
undertaking comprising of the values of Assets and Liabilities and the proceeding
relating to generation activities of erstwhile Gujarat Electricity Board as specified in
the transfer schemes is to be discharged by the company in the form of Equity
Shares of Rs.10/- each fully paid for consideration other than cash to Gujarat Urja
Vikas Nigam Limited, the successor (holding) company as may be directed by the
Government of Gujarat under the Transfer schemes. The Company has already
made a reference to Gujarat Urja Vikas Nigam Limited who has already approached
Government of Gujarat in this regard. Decision from Government is awaited.
(vi) The opening values of Assets and Liabilities of existing undertaking of the company
as on 31/03/2005 have been incorporated as such, except that all the equity
shares held by erstwhile Gujarat Electricity Board in the company stood transferred
in the name of Gujarat Urja Vikas Nigam Limited as per the notification dated 03/
10/2006.
(vii) In accordance with provisions of Clause 4.5 and the notification No. GEB-1104-
7318-K dated 31/12/2004 issued by the Government of Gujarat, Services of all
the employees of erstwhile Gujarat Electricity Board were transferred on “as is
48

where is” basis with the same salary structure and service conditions to the transferee
companies pending the exercise of option by the employee and the issue of final
absorption orders by the Government of Gujarat.
The Government of Gujarat issued final absorption orders vide Notification No.
GUV-1105-5163-K dated 29/09/2005 and accordingly concerned employees were
finally transferred to and absorbed in the Company w.e.f. 01/10/2005
(c) The material known liabilities are provided for on the basis of available information estimates
unless otherwise stated.
2. Use of Estimates
The presentation of financial statements requires certain estimates and assumptions. These
estimates and assumptions affect the reported amount of assets and liabilities on the date of
the financial statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual result and estimates are recognized in the
period in which the results are known / materialized.
3. Fixed Assets
(a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation.
The Fixed Assets of transferred generating undertaking of erstwhile Gujarat Electricity
Board are stated as specified in Para 1(b)(i) above.
In case of Fixed Assets for new projects / extensions / renovation and modernization,
the related expenses and interest cost up to the date of commissioning attributable to
such projects / expansions / renovation and modernization are capitalized.
Recoveries of liquidated damages for construction delays are recorded as a reduction in
the related project’s construction costs as and when accepted/settled.
(b) Fixed Assets of the Utran Power Station, acquired during 2002 for a lump sum purchase
consideration, have been stated at such cost of acquisition. The total Cost of acquisition
of such Fixed Assets has been apportioned to various items of Assets, comprised in
such total Assets acquired as a whole, on the basis of apportionment done by an
independent valuer as provided in and in compliance with Accounting Standard 10
“Accounting for Fixed Assets” issued by the Institute of Chartered Accountants of India.
The incidental expenditure incurred by the Company for acquisition of the Utran Power
Station has also been allocated to various assets in the ratio of apportioned cost of
individual assets.
(c) The amounts contributed towards the cost of Dam and Canal in respect of Ukai Power
station transferred to the Company as per the scheme of restructuring of erstwhile
Gujarat Electricity Board is treated as Capital Expenditure and is depreciated as “Hydrolic
work dam slipway etc.”
(d) The Company is capitalizing the capital spares purchased initially with the equipment or
purchased subsequently in accordance with the provisions of Accounting Standard 10
read with Accounting Standard Interpretation 2 issued by the Institute of Chartered
Accountants of India.
49

4. Capital Work In Progress

(a) Cost of material consumed, erection charges and the incidental expenses incurred for
the project, pending for capitalization are shown as capital work in progress till the
capitalization of assets / project.
(b) In case of Capital Work in Progress for work against Deposits / work contract where the
final settlement of bills with contractor is yet to be effected; capitalization is done on
provisional basis subject to necessary adjustment in the year of final settlement.
(c) Claims for price variation / exchange rate variation in case of capital contracts are
accounted for on acceptance thereof by the Company.
(d) A portion of overhead expenses of Corporate Office and Plant office determined on
rational basis are allocated to the project pro-rata to their capital expenditure for the
year and the same are apportioned to respective capital work in progress accounts on
the basis of accretion thereto.
(e) Capital expenditure on assets not owned by the Company are reflected in fixed assets
and the same are depreciated at relevant rates.
(f) The cost incurred and revenue generated during the Trial Runs Stage of the Project /
Power Station are capitalized.
5. Borrowing Cost
Borrowing cost including interest, guarantee fees commitment charges etc., that is directly
attributable to the acquisition, construction or production of a qualifying asset is capitalized as
part of the cost of that asset up to period the project is commissioned or asset is put to use.
The borrowing cost incurred on common funds borrowed generally and used for the purpose
of obtaining a qualifying asset, is apportioned on rational basis, the remaining borrowing cost is
charged to revenue.
6. Impairment of Assets
The impairment of Assets i.e. “The cash generating unit” as defined in accounting standard-28
issued by Institute of Chartered Accountants of India on “Impairment of Assets” are identified
at the balance sheet date with respect to carrying amount of the asset vis-à-vis its estimated
revenue generation during balance useful life of that asset and the loss, if any, is recognized in
profit & loss account. Impairment loss, if any to be reversed subsequently is accounted for in
the year of reversal.
The company has adopted the policy of carrying out impairment test once in the span of
every three financial years.
7. Depreciation and Amortisation
(a) Depreciation is provided on straight line method on pro rata basis at the rates specified
by the Central Electricity Regulatory Commission (CERC), the statutory authority established
under the Electricity Act, 2003, in terms of notification No. 23.2 / 2205 R & R (Vol. III)
dated 6th January, 2006 issued by the Ministry of Power, Government of India.
(b) Up to the financial year 2003-04, Company had provided depreciation on straight line
method as per the provision of Electricity (Supply) Act 1948 and the rules there under as
50

per the notification F.O.266 (3) dated 29/03/1994 issued by Ministry of Power, Government
of India. The Electricity Act 2003; replaced and repealed the Electricity (Supply) Act
1948 and this new Act does not prescribe rates of depreciation on fixed assets. The
Company therefore provided the depreciation on straight-line basis at rates as per
Schedule XIV of the Companies Act, 1956 for the year 2004-2005.
(c) Capital spares with the company are mostly capable of being used in the group of power
stations with near identical or similar technology using similar plants and machineries and
are expected to be used during more than one accounting period. These spares are,
therefore, depreciated over the residual useful life of the plant in accordance with Accounting
Standard 10 issued by Institute of Chartered Accountants of India.
(d) Plant & Machinery, loose tools and items of any appliances included under different head
of assets costing Rs.5000/- or less are charged off to the revenue account.
8. Investment
Investments are classified in to current and long term investments. Current investments are
stated at the lower of cost and fair value. Long term investments are stated at cost price.
Provision for diminution in the value of Long Term Investment is made only if; such decline is
not temporary in nature in the opinion of the management.
9. Inventories
(a) The Inventories of Coal and Oil are valued at lower of grade based purchase cost plus
freight and other fuel related cost on monthly weight average basis or net realisable
value (NRV).
(b) Stores and spares are valued at lower of the weighted average cost inclusive of freight
and other allocable overheads or net realisable value.
(c) Scrap / obsolete assets are valued at estimated cost or net realisable value whichever is
less.
(d) Coal, Oil and Stores and spares in Transit are valued at Cost plus Freight and other
Incidental expense.
10. Retirement Benefits
(a) The Company has Defined Contribution Plan for its employees’ retirement benefit
comprising of provident fund (administered through trust and funded separately through
Life Insurance Corporation of India), Employees’ Pension Scheme and Employees Death
Linked Insurance.
(i) The company and eligible employees make monthly contributions to provident
fund trust equal to specified percentage of the covered employees’ salary.
(ii) The amounts towards accrued liabilities for pension to employees are deposited
with the Regional Provident Fund Commissioner office as per provision of Employee
Pension Act.
The company has no further obligations to the above referred plans beyond its monthly
contributions.
(b) The Defined Benefit Plan comprising of Gratuity (administered through trust), and Leave
51

Encashment. The liability for the gratuity and leave encashment is determined and
accrued on the basis of independent acturial valuation done at year end.
11. Revenue Recognition
(a) Energy sales are recognised on the basis of amounts of invoices for supply of energy
determined in accordance with the Techno-Commercial parameters approved in the
relevant Power Purchase Agreement / Tariff orders by Gujarat Electricity Regulatory
Commission. Revenue is recognised when no significant uncertainty as to the measurability
and ultimate collection.
(b) Income from scrap, administration charges of fly ash and Interest income are accounted
on accrual basis and insurance claims and dividend are accounted on their receipt.
(c) Income on O & M contract and carbon emission reduction (CERs) is accounted on
accrual basis.
12. Expenditure
All expenses are reflected in revenue accounts under their natural heads. Expenses shown
under the generation of power, repair & maintenance, the employee cost, depreciation,
administration and general expenses and interest and finance charges, which are disclosed
separately.
13. Grant from the Government
(a) In accordance with the Accounting Standard 12 on ‘Accounting for government Grants
issued by the Institute of Chartered Accountants of India, Grants and Subsidies received
from Government are recognised on reasonable certainty of its realisability.
(b) Grant and subsidies received for the specific assets are reduced from the cost of
concerned specific assets.
(c) Capital Grants received (Capital support Under FRP) as promoters Contributions are
treated as Capital Reserve forming part of “ Shareholders Fund “
(d) Grants & Subsidies on Revenue account are disclosed separately as Income in the Profit
& Loss Account.
14. Taxation
(a) Current Tax provision determined on the basis of estimated taxable income under the
Income Tax Act, 1961 after considering permissible tax exemption, reduction / disallowance.
In the absence of any prospective taxable income for the year, the tax liability is
calculated at the minimum alternate tax rate under section 115JB of the Income Tax
Act, 1961.
(b) The Deferred Tax is recognised, subject to the consideration of prudence, on timing
differences, being the difference between taxable incomes and accounting income
that originate in one period and are capable of reversal in one or more subsequent
period using the tax rates and laws that have been enacted or substantively enacted
as at the balance sheet date.
Deferred tax assets are recognised on unabsorbed depreciation and carry forward of
losses based on virtual certainty that sufficient future taxable income will be available
52

against which such deferred tax assets can be realised. Deferred tax on timing differences
other than those referred above is recognised and carried forward only to the extent
that there is reasonable certainty that sufficient future taxable income will be available
against which such assets can be realised.
(c) Provision for fringe benefit tax is made on the basis of estimated taxable liabilities for the
year.
15. Transactions in Foreign Currency
(a) Transactions denominated in foreign currencies are normally recorded at the exchange
rate prevailing at the time of the transaction.
(b) Monetary items denominated in foreign currencies at the year end are restated at the
year end rates.
(c) Any income or expense on account of exchange difference either on settlement or on
transaction is recognised in the profit and loss account.
16. Prior Period Items and Extra - Ordinary Items
Adjustments arising due to errors or omission in the financial statements of earlier years are
accounted under “Prior Period”. Items of Income & Expenditure, which are not of recurring
nature viz., damages due to floods, earth quakes etc. are disclosed as extra ordinary items.
17. Provision, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when
there is a present obligation as a result of past events and it is probable that there will be an
outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial statements.
53

SCHEDULE - ‘20’ NOTES TO THE FINANCIAL STATEMETNS

FORMING PART OF ACCOUNTS
1. Secured and Unsecured Loans

(a) Loans directly raised by company:
The company has raised loans, secured and unsecured, from the financial institutions
namely Power Finance Corporation Limited, Rural Electrification Corporation Limited and
Gujarat State Financial Services Limited. Out of such outstanding loans as at year end
aggregating to Rs. 2132.82 crores, the loans of Rs. 1937.37 crores are secured against
the charge / security of fixed assets more particularly described under schedule 4
“Secured Loans”. The charge in respect thereof has been registered with Registrar of
Companies. The balance amount of Rs. 195.45 crores received from PFC has been
classified as Unsecured Loans though guaranteed by Government of Gujarat as the
company is yet to issue Indemnity Bond to Government of Gujarat and / or still in the
process of offering security of its own assets against the aforesaid Unsecured Loans.
The Company has also raised long term finance from Oriental Bank of Commerce and
Kalupur Commercial Co-op. Bank Ltd. amounting to Rs. 293.71 Crores and Rs. 33.63
crores respectively, aggregating to Rs. 327.34 crores, which have been secured against
charge / security of fixed assets, more particularly described under schedule-4 “Secured
Loans”. The Company has also raised short term finance amounting to Rs.300.00
crores from Gujarat State Financial Services Limited., which has been classified as
“Unsecured Loans”, under Schedule-5.
(b) Loan transferred under the FRP Scheme as on 01/04/2005:
The outstanding balances as on 31/03/2009, in respect of loans transferred under FRP
Scheme have been considered as unsecured allocated loans from Gujarat Urja Vikas
Nigam Limited in the absence of specific Government order for apportionment of secured
loans under Clause 3(2) of the Gujarat Electricity Industrial (Re-organisation & Regulation)
Act and Comprehensive Transfer Scheme, 2003 or Multilateral Facility and Securities
Sharing Agreement between Gujarat Urja Vikas Nigam Limited, transferee companies
and Lenders. Out of several loans raised by Gujarat Urja Vikas Nigam Limited during the
year under review for common usage of transferee companies, the loan amounting to
Rs.838.61 crores have been apportioned to the company as per intimation received
from Gujarat Urja Vikas Nigam Limited.
2. Equity pending allotment
(a) In pursuance to Notification No. GHU-(203)-GUV-1106-590-K dated 12th December
2008, the consideration amounting to Rs. 1322.69 crores payable by the Company to
Gujarat Urja Vikas Nigam Ltd. (as per FRP Notification dtd. 3rd October 2006) for
transfer of generation undertakings of erstwhile GEB, which was hitherto appeared under
the equity share capital Suspense Account, has now been adjusted in accordance with
the Resolution passed by the Board of Directors in the Board Meeting held on 30th
January 2009, by crediting the sum of Rs. 330.67 crores to equity share capital and Rs.
992.02 crores to share premium account.
(b) On receipt of approval from competent authority and in accordance with the Resolution
54

passed by Board of Directors in its meeting held on 30th January 2009, out of the sum
of Rs. 109 Crores received from Gujarat Urja Vikas Nigam Ltd., which was hitherto
classified as share application money, the sum of Rs.9 crores has been credited to share
capital account. Further, pending approval for allotment of issuance of shares from
Govt. of Gujarat, the sum of Rs. 369.57 crores received from Gujarat Urja Vikas Nigam
Ltd. towards equity has been classified as share application money.
3. Claim Settlement / Pending Reconciliation
(a) Subsequent to year end, the balances in the accounts of coal suppliers namely South
Eastern Coalfield Limited and Western Coalfield Limited, which were hitherto pending for
reconciliation and necessary adjustments, have been reconciled for the period ended up
to March 2009. The necessary adjustments upon reconciliation, if any, would be made
in the year of reconciliation.
(b) The grade difference for coal purchased on the basis of unilateral sample by coal
suppliers at the time of loading or by erstwhile Gujarat Electricity Board at the time of
receipt of coal during the past several years had resulted into claims and counter claims
between erstwhile Gujarat Electricity Board, the company and coal suppliers. Such grade
difference claims together with coal related claims and other recoveries from the collieries
have been settled pursuant to the final settlement with Western Coalfield Limited arrived
at during the year. Consequent to such settlement, the sum to the tune of Rs. 7.78
crores has been credited to Profit and Loss account for the year. Further, necessary
provisions in respect of claims against companies, pending final settlement, have also
been appropriately made in the Books of Accounts.
(c) During the year under review, the company has booked net loss of Rs. 25.20 crores
due to inter unit adjustment of 13220 wagons given by Railways for pending missing
wagon claims of the company for the period from December 2005 to March 2008
towards coal cost and freight, which were hitherto shown as receivables on the account.
4. Fixed Assets and Depreciation
(a) Adhering to significant accounting policy, the depreciation on assets is provided at rates
prescribed by Central Electricity Regulatory Commission (CERC), which are lower than
the rates as referred to in Schedule-XIV to the Companies Act, 1956 and as a result,
depreciation provided for the year is lower by Rs. 78.68 crores. The company is yet to
receive the permission of Company Law Board sought by the company in respect of
charging depreciation at the rates lower than rates referred to in schedule XIV to the
Companies Act, 1956.
(b) In response to appointment of external agency to carry out technical evaluation of
assets to estimate the remaining useful life of its power generating plants, the Company
has received the report substantiating the fact that depreciation charged on Company’s
assets is adequate, in view of ongoing renovation and modernisation schemes implemented
for various plants.
(c) Adhering to significant Accounting Policy on impairment of assets and based on reports
by independent consultant on impairment of various assets of the Company, the loss on
impairment to the tune of Rs.14.40 lacs has been recognized in the Profit & Loss
Account for the year under review.
55

5. Employee Benefits
(a) Defined contribution to provident fund, employee pension scheme and Employees Death
Linked Insurance.
The company makes contribution towards Employees’ Provident Fund, Employees’ Pension
Scheme and Employees Death Linked Insurance. In accordance with the provisions of
these schemes, the Company is required to contribute a specified percentage of payroll
costs. The Company has, during the year, recognized the sum of Rs. 18.55 crores (P.Y.
Rs. 17.94 crores) as expense towards contributions to these plans.
(b) Defined contribution towards retirement benefits:
The following table sets out the status of the gratuity and leave encashment scheme
plans as at 31st March, 2009.
(Rs. In Lakhs)
Gratuity Leave Encashment
Particulars 2008-09 2007-08 2008-09 2007-08
Changes in the present value of obligation
Present value of obligation (Opening) 9831.76 8413.38 6508.42 6693.68
Interest cost 786.54 673.07 520.67 535.49
Past service cost NIL NI L NIL NI L
Current service cost 187.81 228.39 298.56 207.43
Curtailment Cost / (Gain) NIL NI L NIL NI L
Settlement Cost / (Gain) NIL NI L NIL NI L
Benefits paid (639.10) (697.99) (399.99) (393.47)
Actuarial (Gain) / Loss 1437.63 1214.90 2439.93 (534.71)
Present value of obligation (Closing) 11604.64 9831.76 9367.59 6508.42
Changes in the fair value of plan assets
Present value of plan assets (Opening) 3918.18 2554.84 NIL NI L
Expected return on plan assets 402.79 280.42 NIL NI L
Actuarial Gain / (Loss) (40.64) (39.08) NIL NI L
Employers Contributions 1275.63 1819.98 NIL NI L
Employees Contributions NIL NI L NIL NI L
Benefits paid (639.10) (697.99) NIL NI L
Fair Value of Plan Assets (Closing) 4916.85 3918.18 NIL NI L
Percentage of each category of plan
assets to total fair value of plan assets
at the year end
Bank Deposits (Special Deposit Scheme,1975) NIL NI L NIL NI L
Debt Instruments NIL NI L NIL NI L
Administered by Life Insurance 100% 100% - -
Corporation of India
Others NIL NI L NIL NI L
Reconciliation of the present value of
defined benefit obligation and
the fair value of assets
Present value of funded obligation 4916.85 3918.18 NIL NI L
as at the year end
56

(Rs. In Lakhs)
Particulars 2008-09 2007-08 2008-09 2007-08
Fair value of plan assets as at year end 4916.85 3918.18 NIL NI L
Funded (Asset)/ Liability recognised NIL NI L NIL NI L
in the balance sheet
Present value of unfunded 6687.79 5913.58 9367.59 6508.42
obligation as at the year end
Unrecognised past service cost NIL NI L NIL NI L
Unrecognised Actuarial (Gains) / Losses NIL NI L NIL NI L
Unfunded net liability recognised 6687.79 5913.58 9367.59 6508.42
Amount recognised in the balance sheet
(Through holding company GUVNL)
Present value of obligation as at the year end 11604.64 9831.76 9367.59 6508.42
Fair value of plan assets as at the year end 4916.85 3918.18 NIL NI L
(Asset) / Liability recognized (6687.79) (5913.58) (9367.59) (6508.42)
Expenses recognised in the
profit & loss account
Current service cost 187.81 228.39 298.56 207.43
Past service cost NIL NI L NIL NI L
Interest cost 786.54 673.07 520.67 535.49
Expected return on plan assets (402.79) (280.42) NIL NI L
Curtailment Cost / (Credit) NIL NI L NIL NI L
Settlement Cost / (Credit) NIL NI L NIL NI L
Net Actuarial (Gain) / Loss 1478.27 1253.98 2434.93 (534.71)
Employee’s Contribution NIL NI L NIL NI L
Total expenses recognised in the ($) 2049.84 1875.02 (*) 3259.16 (@) 208.21
profit and loss account
Principal actuarial assumption
(Rate of Discounting)
Rate of discounting 8.00% 8.00% 8.00% 8.00%
Expected return on plan assets 9.50% 9.00% - -
Rate of increase in salaries 5.00% 5.00% 5.00% 5.00%
Attrition Rate 3% to 1% 3% to 1% - 3% to 1%
(Employees opting for early retirement)
($) Actual debit to Profit & Loss A/c. is lower by Rs. 1.73 lacs due to credit of
gratuity contribution received of Rs. 1.89 lacs from SSNNL for employees of the
Company on deputation and gratuity paid by Company for uncovered employees
for Rs. 0.16 lacs.
(à) Actual debit to Profit & Loss A/c. is lower by Rs. 0.95 lacs due to contribution
received from employees on deputation at SSNNL.
(@) Actual debit to Profit & Loss A/c. is higher by Rs. 185 lacs due to reversal of
excess provision for the previous year.
57

6. Borrowing and other cost related to project

During the year under consideration the Company has capitalized borrowing costs amounting
to Rs. 146.68 crores in accordance with the Accounting Standard 16 “Borrowing Costs” issued
by the Institute of Chartered Accountants of India.
The Company has also capitalized Rs. 78.90 crores being the aggregate of the employee cost
and administration cost of Projects Department and other general administration costs which
are apportioned to the ongoing projects and renovation and modernization schemes.
7. Segment Reporting
The company’s primary business segment is Generation and Distribution of Electricity. Based
on the guiding principles given in Accounting Standard 17 on “Segment Reporting” issued by the
Institute of Chartered Accountants of India, this activity falls within a single primary business
segment and accordingly the disclosure requirements of Accounting Standard 17 in this regard
are not applicable.
8. Related party disclosures
Based on opinion obtained from eminent consultant and in accordance with the Accounting
Standard 18 “Related Party Disclosures” issued by the Institute of Chartered Accountants of
India, the disclosure related to the transactions with the related parties is not required and
therefore such disclosures are not made.
9. Earning per share
Earning per share is calculated by dividing the profit attributable to the equity shareholders by
the weighted average number of equity shares outstanding during the year. Numbers used for
calculating basic and diluted earnings per equity share does not include the amount of Equity
Suspense Account are as stated below:
Particulars 2008-09 2007-08

1. Profit after tax, prior period adjustments and 7053.36 5924.12
Extra-ordinary Items (Rupees in lacs)
2. Number of equity shares 912972424 573300070
3. Face value per share (Rs.) 10.00 10.00
4. Earnings per Share (Basic) 0.77 1.03
5. Number of dilutive potential equity shares 1201173268 670738426
6. Earnings per Share (Diluted) 0.59 0.88
10. Taxation
(i) According to the legal opinion of an eminent tax consultant, the Company is eligible for
the benefit of carry forward of business losses and unabsorbed depreciation of the
erstwhile Gujarat Electricity Board under section 72(A) of the Income Tax Act, 1961
read with Central Government Gazette Notification No. SO-1159(E) dated 26/12/2000.
58

The apportioned amount of Rs. 65474.83 lacs and Rs. 52193.00 lacs being carry forward
of losses and unabsorbed depreciation respectively for the Company interalia have been
applied to work out the current tax liabilities as well as deferred tax for the year.
(ii) Current Taxation
In the absence of any taxable income for the year, the tax liability is calculated at
Minimum Alternate Tax under Section 115JB of Income Tax 1961 and provision of
Rs.1025.00 lacs has been made for the same.
(iii) Deferred Taxation
The company is entitled to setoff of carried forwarded losses and unabsorbed depreciation
against the future taxable income under the Income-tax Act. As a matter of prudence
and in the absence of virtual certainty, company is not recognizing the deferred tax
assets in respect of carried forward losses and unabsorbed depreciation as provided by
Accounting Standard 22 “Accounting for Taxes on Income”, issued by the Institute of
Chartered Accountants of India. Deferred tax assets in respect of other timing differences
is also not recognised as in the opinion of the management there will be no future
sufficient income to recover such deferred tax asset.
11. Contingent Liabilities and Capital Commitments
(Rs. In Crores)
Particulars 2008-09 2007-08
(A) Contingent Liabilities not provided for in respect of :
(i) Claim against the company not acknowledged as debt. 207.85 173.94
(employees related matters)
(ii) Disputed Income-tax Matters 7.17 1.00
(iii) Claims from lessor for disallowance of 173.97 173.97
depreciation on leased assets
(iv) Revision in rates of water supplies 94.30 98.86
(v) Stamp duty on share certificates to - 1.63
be issued to Gujarat Urja Vikas Nigam Ltd.
(vi) Claims against Company pending Court Orders. 0.42 2.55
(B) Capital Commitments
Estimated amount of contract remaining to the 310.41 1294.11
executed on capital accounts (Net of Advances)
12. The amounts receivable (Dr.) from and payable (Cr.) to various parties, suppliers, contractors
etc. on various accounts, which are carried in various Suspense Accounts / Registers at plants,
more particularly, those transferred to Company under transfer scheme as on 1-4-2005,
required thorough scrutiny to ascertain the precise break up and supporting documents to
59

establish the claims by and / or against the Company of these parties. Though, the Company
has adopted practice of circulating and obtaining confirmation from the parties concerned at
the year end, the Company has received the response from few of them; whereas, many
parties have not yet responded. Pending such confirmations and aforesaid reconciliations, the
Company has identified long outstanding debits and credits, neither recoverable nor payable,
to the tune of Rs.742.95 lacs. The Company is in the process of obtaining approval of
competent authority to write off such identified balances. Pending approval, the Company has
made the provision for bad advances amounting to Rs.742.95 lacs during the year under
review.
13. (a) Subsequent to year end, the Company has arrived at the settlement with recognized
employees’ unions on chartered of demands submitted by them for wage revision,
effective from 1st January 2006. Pursuant to such settlement, the additional liability in
respect of wage arrears has been ascertained to the tune of Rs. 14395.23 lacs; which
has been adjusted against the provisions made in earlier years. The excess provision to
the tune of Rs. 5246.97 lacs has been written back under the Head “Provision no longer
required” to profit & loss account for the current year.
(b) Subsequent to year end, the cooling tower at Kutchh Lignite Thermal Power Station
collapsed which has resulted into a loss amounting to Rs. 1075.59 lacs. The necessary
adjustments in respect thereof shall be made in the books of accounts in the year of
event.
14. Pursuant to discussions held at the meeting on 13th May 2008 between GMDC, GUVNL and
the Company, as agreed upon, the rate of lignite supplied by GMDC was revised and re-fixed
at Rs. 475/- per MT plus royalty and VAT as applicable; as against Rs. 780/- per MT, duly
approved by GERC vide its order No. 896/2006 dated 13th March’07. This pre-revised rate of
Rs. 780 per MT was taken into consideration while raising the invoices for sale of electrical
energy by KLTPS unit of the Company for the financial year 2007-2008. Consequent to such
revision and in response to demand of GUVNL vide its letter No. CFM (IPP)/ 1349 dated 29-9-
’08, the Company had reversed sales to the extent of Rs. 24.14 Crores in the financial
year 2007-08. During the year under review, on receipt of approval vide letter No. MCR-
342007-1125 dated 29-12-2008 from Govt. of Gujarat, the Company has adjusted its fuel
cost to the tune of Rs. 24.14 Crores by corresponding debit to GMDC account.
15. The company is in the process of reconciling bank collection account maintained at Kutchh
Lignite Thermal Power Station and remittance in transit for Kadana and Wanakbori Tharmal
Power Stations. In the opinion of the management the impact on financial statements for the
year under review will not be material.
16. The company has reconciled the balances in the accounts of GUVNL during the year under
review which was hitherto under reconciliation and final adjustments in respect thereof. Consequent
upon reconciliation the company has identified the receipt of funds, within the time frame
referred to in Power Purchase Agreement and matched such receipts against invoices for sale
of electricity raised by the company. Therefore in response to demand of GUVNL and in
pursuance of Power Purchase Agreement, the company has allowed the discount/rebate to
the tune of Rs. 17455.10 lacs to GUVNL.
60

17. Remuneration to Managing Director

(Rs. In Lakhs)
Sr. Particulars 2008-09 2007-08
No.
1. Salaries & Allowances 5.10 10.71
2. Contribution to P.F. & Other Funds 0.53 1.29
3. Value of Perquisites 0.50 1.41
Total: 6.13 13.41
18. Statutory Auditor Remuneration

(Rs. In Lakhs)
No.
1. Statutory Audit Fees 17.65 17.98
2. Out of Pocket Expenses 0.82 —
Total: 18.47 17.98
Note : Inclusive of Service Tax
19. The particulars in respect of generation of electricity, units sold and consumption of fuel are
as under:
A. Generation of Electricity and Units Sold
Sr. Power Plants 2008-09 2007-08

No.
1. Installed Capacity (MW) 4776 4766
2. Gross Generation ( in MUs) 28387 29241
3. Auxiliary Consumption (in MUs) 2523 2609
4. Units Sold (in MUs) 25937 26669
Note:-Installed capacity is as certified by the Management and has not been verified by the
Auditors, this being a technical matter.
B. Consumption of Fuel
(Rs. In Cores)
No. Qty. Amount Qty. Amount
1. Consumption of Coal & Lignite ( in ‘000 MT) 18046.29 4279.15 17796.32 3869.33
2. Consumption of Gas (Lacs SCM) 4353.83 753.09 4688.15 525.38
3. Consumption of LSHS (in ‘000 Liters) 402.64 547.54 383.71 539.02
61

20. Expenditure in foreign currency

(Rs. In Cores)
No.
1. Earnings in Foreign Currency NIL NIL
2. Remittances in Foreign Currency 468.72 2.71
3. CIF Value of Imports 437.22 2.71
4. Foreign Traveling NIL NIL
21. The company has initiated the process of obtaining the confirmation from suppliers who have
registered themselves under the Micro, Small and Medium Enterprises Development Act,
2006 (MSMED Act, 2006). However, in the absence of relevant information relating to the
suppliers registered under the Micro, Small and Medium Enterprises (Development) Act,
2006, the balance due to Micro, Small and Medium Enterprises at year end and interest paid
or payable under MSMED Act, 2006 during the year could not be compiled and disclosed.
22. Statement of Management
(a) The current assets, loans and advances are good and recoverable and are
approximately of the values, if realized in the ordinary courses of business unless and
to the extent stated other wise in the Accounts. Subject to the notes regarding
depreciation, other notes and the method of accounting followed by the Company,
provision for all known liabilities is adequate and not in excess of amount reasonably
necessary. There are no contingent liabilities except those stated in the notes.
(b) Balance Sheet, Profit & Loss Account and Cash Flow statement read together with
the schedules to the accounts and notes thereon, are drawn up so as to disclose the
information required under the Companies Act, 1956 as well as give a true and fair
view of the statement of affairs of the Company as at the end of the year and
results of the Company for the year under review.
23. Previous year figures have been regrouped, reclassified and reworked wherever necessary
for comparative purpose.

SANDIP A. PARIKH S. JAGDEESAN P. H. RANA L. CHUAUNGO
Mem. No. 40727
Date: 08-10-2009 Date: 08-10-2009
62

BALANCE SHEET ABSTRACTS AND COMPANY’S GENERAL BUSINESS PROFILE AS

REQUIRED PURSUANT TO PART IV OF SCHEDULE VI TO THE COMPANIES ACT, 1956
I. Registration Details:
Registration No. 19988, State Code 04
Balance Sheet Date 31st March, 2009
II. Capital Raised during the year (Amount in Rs. Lacs)
Public Issue: — Right Issue: —
Bonus Issue: — Private Placement : 33967.23
III. Position of mobilisation and Deployment of Funds (Amount in Rs. lacs)

Total Liabilities 7 72 008.95 Total Assets 7 72 008.95
Sources of Funds Application of Funds
Paid-up Capital 91 297.24 Net Fixed Assets 8 35 866.53
Equity Pending Allotment 36 956.60 Investments 2 052.00
Reserve and Surplus 1 53 661.18 Net Current Assets (65 909.58)
Secured Loan 2 35 432.44 Misc. Expenditure —
Unsecured Loan 2 54 661.49 Accumulated Losses —
IV. Performance of Company (Amount in Rs. lacs)
Turnover and Other Income 7 32 351.65 Total Expenditure 7 24 150.28
(+) Profit/(Loss) before tax 8 201.37 (+) Profit/(Loss) after tax 7 053.36
Earning per share (Rs.) 0.77 Dividend Rate —
V. Generic names of principal products services of company (as per monetary terms)
Product/Service Description Item code No.
Generation of Electricity Not Applicable
FOR AND ON BEHALF OF THE BOARD
S. JAGADEESAN P. H. RANA L. CHUAUNGO

Chairman Managing Director Director
Place: Vadodara
Date: 08-10-2009
63

PROXY FORM
Regd. Office: Vidyut Bhavan, Race Course, Vadodara - 390007.
I We
of
being a member/members of the above named Company hereby appoint
of
or failing him of
as my/our proxy to attend and vote for me/us on my/our behalf at
the Fourteenth Annual General Meeting of the Company to be held on Wednesday, the 23rd December,
2009 at 12.30 P.M. and at any adjournment thereof.
Signed Revenue Stamp
Note : Proxy Forms must reach the Company’s Registered Office not less than 48 hours before the meeting.
ATTENDANCE SLIP
GUJARAT STATE ELECCTRICITY CORPORATION LIMITED
Regd. Office : Vidyut Bhavan, Race Course, Vadodara - 390007.
(To be handed over at the entrance of the Meeting Hall)
Name of the Shareholder Folio Number

(in Block Letters)
Name of the Proxy

(In Block Letters, to be filled in if the Proxy attends instead of the Member)
No. of Shares held :
I hereby record my presence at the Fourteenth Annual General Meeting held on Thursday, the 23rd December,
2009 at 12.30 P.M. at the Regd. Office at Vadodara and at any adjournment thereof.
Member / Proxy Signature
NOTES :
1. To be signed at the time of handing over this slip.
2. Members intending to require information about accounts to be explained in the Meeting are requested
to inform the Company in writing, at least seven days in advance of their intention to do so, so that
the papers relating thereto may be made available.
3. Shareholders are requested to advise, indicating their folio numbers, the changes in their address, if
any, to the Company.
64


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GUJARAT STATE ELECTRICITY CORPORATION LIMITED

16th Annual Report 2008-09

FINANCIAL INSTITUTIONS & BANKERS 7

AUDITORS AND COMPANY SECRETARY 8

PROFIT AND LOSS ACCOUNT 35

CASH FLOW STATEMENT 36

SCHEDULES FORMING PART OF THE BALANCE SHEET 37

SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT 44

SIGNIFICANT ACCOUNTING POLICIES 47

NOTES FORMING PART OF FINANCIAL STATEMENTS 54

BALANCE SHEET ABSTRACT AND COMPANY’S GENERAL BUSINESS PROFILE 63

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GUJARAT STATE ELECTRICITY CORPORATION LIMITED

SIXTEENTH ANNUAL REPORT

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THERMAL POWER STATIONS

HYDRO POWER STATIONS

GAS BASED POWER STATIONS

OIL BASED POWER STATIONS

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SHRI D. J. PANDIAN, IAS CHAIRMAN

SHRI S. JAGADEESAN, IAS CHAIRMAN

SHRI C. L. MEENA, IAS DIRECTOR

SHRI I. P. GAUTAM, IAS DIRECTOR

SHRI H. P. DESAI DIRECTOR

SHRI B. S. REUBEN DIRECTOR

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FINANCIAL INSTITUTIONS / GOVERNMENT COMPANY

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G. K. CHOKSI & CO.

K. SANKLECHA & ASSOCIATES

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NOTICE OF SIXTEENTH ADJOURNED ANNUAL GENERAL MEETING

on 23rd December, 2009: -

By Order of the Board

A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A

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By Order of the Board

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1 A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO AP-

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EXPLANATORY STATEMENT PURSUANT TO SECTION 173 OF THE COMPANIES ACT,

The Board recommends the appointment as Director.

By Order of the Board

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The demand of electricity in India is enormous and is growing steadily.

Installed Capacity of India (31-03-2009)

02 Western 25652.5 6983.2 17.48 32653.2 1840.0 7448.5 4023.6 45965.3

03 Southern 16882.5 3406.2 939.32 21028.0 1100.0 10954.2 7047.9 40130.0

04 Eastern 16446.4 190.0 17.20 16653.6 0.00 3933.9 227.4 20814.9

05 N. Eastern 60.0 766.0 142.7 968.7 0.00 1116.0 171.0 2255.7

06 Islands 0.0 0.0 70.0 70.0 0.0 0.0 6.1 76.1

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Energy Peak Demand

Year Central State Private Overall

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Growth of installed capacity of Gujarat (in MW) since 6th plan