KPTCL Annual Report Highlights

Karnataka Power Transmission Corporation Limited
Table of Contents
1. Directors Report ................................................ 4
2. Comments of the C & AG of India ................... 45
3. Auditors Report and Replies .......................... 46
4. Balance Sheet ................................................... 78
5. Profit & Loss Account ...................................... 80
6. Notes .................................................................. 82
Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 2

BOARD OF DIRECTORS
List of Directors (As on the date of AGM)
Sl.No. Name Particulars

1 Kum. Shobha Karandlaje Chairperson, KPTCL
2 Sri S. Selvakumar Managing Director
3 Sri L.V. Nagarajan Director
4 Sri D.N. Narasimha Raju Director
5 Sri M.N. Vidyashankar Director
6 Sri Pradeep Singh Kharola Director
7 Sri K. Shivaram Director
8 Sri M.R. Kamble Director
9 Sri P. Manivannan Director
10 Dr. Aditi Raja Director (Finance)
11 Sri S. Sumanth Director (Transmission)
12 Sri Muddu Mohan Director (Adm & HR)
13 Sri S. Shivamallu Director
14 Sri Venkatasiva Reddy Director
15 Sri M. Nagaraju Director
COMPANY SECRETARY
Sri R. Sridhara
FINANCIAL ADVISER
Sri C. Sreenivasan
STATUTORY AUDITORS
M/s. Rao & Swami
Chartered Accountants, Bangalore
COST AUDITORS
M/s. K.P.R. & Associates
Bangalore
3 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

DIRECTORS REPORT
Dear Members,
The Board of Directors of Karnataka Power Transmission Corporation Limited (KPTCL)

have immense pleasure in presenting the 13th Annual Report for the year 2011-12 and the
Audited Accounts of the Company for the year ended 31st March 2012.
FINANCIAL POSITION:
The Financial position of the Company for the three years ending 31st March 2012 is
as follows:
(Rs. In Lakhs)
Sl. No. Particulars 2009-10 2010-11 2011-12

Liabilities
Paid-up capital (including Share
a) 117532.25 157532.25 167532.25
deposit)
b) Reserves & Surplus 34593.18 42213.82 49952.05
c) Borrowings
Government of Karnataka 772.29 712.89 594.07
Public Bonds 0 0 0
Private Bonds 0 0 0
Financial Institutions & Banks 519104.01 549953.76 523350.49
Cash Credit from Banks 0 0
Other Funds 34122.82 37491.00
Other long term, Other Current

Liabilities, Short term, Long term
d) 421886.09 434130.46 463266.56
Provisions & other liabilities
(Including interest accrued & due)
Total 1128010.64 1222034.18 1204695.42
Assets
e) Gross Block 780859.28 902550.99 995921.43

f) Less: Depreciation 230591.43 269601.34 313094.42

Sl. No. Particulars 2009-10 2010-11 2011-12
g) Net Block 550267.85 632949.65 682827.01
h) Capital Work in Progress 292222.93 259129.42 178953.07
Other Current, Non-Current Assets,
Short term, Long term Loans &
i) 283801.41 328225.00 342915.34
Advances, Trade Receivables & Cash
equivalents
j) Miscellaneous Expenditure 1718.45 1730.11
Total 1128010.64 1222034.18 1204695.42
Capital Employed 704406.10 786173.61 556389.24
Net Worth 150406.98 198015.96 217484.30
Note:
1) Capital Employed represents net fixed assets including capital work-in-progress plus
working capital
2) Net worth represents paid up capital plus reserves & surplus less intangible assets
WORKING RESULTS:
The working results of the Company for the three years ending 31st March 2012 are as
follows:
(Rs. in Lakhs)
Sl.
Particulars 2009-10 2010-11 2011-12
No.
i) Profit (+) / Loss (-) for the year 1626.99 1886.51 1376.97
ii) Prior Period Adjustments -1030.64 -1723.03 -506.38
iii) Profit (+) / Loss (-) before Tax 596.35 163.48 870.59
iv) Tax Provision -251.57 76.56 104.00
v) Profit (+) / Loss (-) after Tax 847.92 86.92 766.59
Percentage of Profit before tax to:
a) Sales 0.64 0.13 0.52

vi)
b) Gross Fixed Assets 0.08 0.02 0.09
c) Capital Employed 0.08 0.02 0.16

Sl.
Particulars 2009-10 2010-11 2011-12
No.
Percentage of Profit after tax to:
a) Net worth 0.56 0.04 0.35
vii)
b) Equity Capital 0.72 0.06 0.46
c) Capital Employed 0.12 0.01 0.14
ADDITION/CHANGES TO THE EXISTING SIGNIFICANT ACCOUNTING POLICIES
During the year under report the following additions /Modifications are made to the
existing Accounting Policies for the Financial Year 2011-12 and onwards:
i) Operating Cycle:
The Assets are classified as Current Assets & Non-Current Assets and Liabilities are
classified as Current Liabilities and Non-Current Liabilities assuming the operating cycle of
the corporation as duration of 12 months.
ii) Revenue Recognition:
Following modifications are made in the Policy with regard to Recognition of the
Revenue from Inter State Wheeling charges:
Existing Modified
Revenue from Transmission & a) Revenue from Transmission is recognized
Wheeling is recognized on accrual on accrual basis at the tariff as notified by
basis at the tariff as notified by Karnataka Electricity Regulatory Commission
Karnataka Electricity Regulatory (KERC) from time to time in its Multi Year Tariff
Commission (KERC) from time to time (MYT) which is arrived on the basis of estimated
in its Multi Year Tariff (MYT) which Return on Equity and relevant aspects.
is arrived on the basis of estimated b) Revenue from Inter State Wheeling Charges is
Return on Equity and relevant aspects. recognized on accrual basis based on Regional
Revenue from Other Sources is also Energy Account (REA) published by Southern
accounted on accrual basis. Region Power Committee (SRPC).
c) Revenue from Other Sources is also accounted
on accrual basis.

iii) Employee Benefits:
Existing Modified
Expenditure towards Gratuity, a) Expenditure towards defined benefit scheme
Pension and Leave Encashment is Gratuity and Pension which covers employees who
provided on the basis of Actuarial have joined service upto 31.03.2006 is provided on
valuation at the end of each financial the basis of Actuarial valuation using Projected Unit
year in conformity with the revised Credit Method (PUCM) in conformity with Accounting
Accounting Standard - 15. Actuarial Standard - 15. Actuarial gains or losses are recognized
gains or losses are recognized in in the Profit and Loss Account.
the Profit and Loss account.
b) Employees who have joined the Corporation on
or after 01.04.2006 are covered under New Defined
Contributory Pension Scheme (NDCPS) and
Companys Contribution at fixed percentage of salary
is ascertained and paid/provided accordingly.
c) Long term benefit Leave Encashment is

ascertained on the basis of Actuarial valuation using
Projected Unit Credit Method (PUCM) and provided
at the end of each Financial Year as required by
Accounting Standard 15. Actuarial gains or losses
are recognized in the Profit and Loss Account.
iv) Depreciation on Transformers and other Assets issued for repairs:

Existing Modified
Depreciation is not charged on transformers Depreciation on released Assets (Assets
and other assets issued for repairs. not in use) and released Assets issued for
Depreciation charge is resumed after the repairs have been charged at normal rates
asset is put back to use after repairs. on Written Down Value of Assets.
PERFORMANCE DURING LAST THREE YEARS
Year 2009-10 2010-11 2011-12

Energy Handled in MUs 47783 50516 56928
Maximum Energy recorded /Day in MUs 148 172 186
Maximum Peak recorded in MWs 6897 7815 8549

CAPEX
EQUITY
Particulars As at 31.03.2011 As at 31.03.2012

Equity Share Capital (Rs. in lakhs) 690.32 1123.26
Debt (Rs. in lakhs) 5506.66 5587.77
Debt Equity Ratio 7.98 : 1 4.97 : 1
SOURCE WISE INSTALLED GENERATION CAPACITY AS ON 31-03-2012:

Source Inst. Cap. (MW)
Hydro 3657
Thermal 2328
CGS 1700
NCE 3638
IPPs & Others 708

Total 12031
KPTCL STATIONS & TRANSMISSION LINES AS ON 31.03.2012:
Voltage Number of Transmission

Level Stations line in Ckms
400 kV 4 +(*) 1978.18
220 kV 89 9760.46
110kV 331 9063.03
66kV 542 9737.70

Total 966 30539.7

*- 8 Sub-station of M/s PGCIL
Transmission Loss 3.907% (11-12) (without SR
loss: From KPTCL boundary point to IF point of
ESCOMs i.e., excluding SR loss) -4.4898% (with
SR Loss: Considering CGS generation and power
purchase from their respective at Ex-bus)
ESCOM WISE INSTALLED TRANSMISSION CAPACITY-

2011-12 (220KV SUB-STATIONS)
Transformers Number of Sub- Transmission

Company
Capacity in MVA Stations Capacity in MWs
BESCOM 8195 35 6966
MESCOM 1600 7 1360
CESC 2450 12 2082
GESCOM 2300 13 1955
HESCOM 4060 22 3451
TOTAL 18605 89 15814
ENERGY & DEMAND FORECAST:
Energy and Demand Forecast as per draft 18th EPS for the State of Karnataka is as
follows:
Year Energy in MUs Demand in MWs

2012-13 57947 9317
2013-14 62980 10198
2014-15 68208 11123
2015-16 73278 12036
2016-17 78637 13010
DETAILS OF NEW STATIONS AND TRANSMISSION LINES COMMISSIONED AND

AUGMENTATION WORKS CARRIED OUT DURING 2011-12
KPTCL, being the State Transmission Utility has been planning to put in place the best
System. KPTCL has planned construction of several new stations and augmenting the existing

sub-stations during the next couple of years. Year on year, in addition to augmentation, several
new stations and lines are commissioned. Following list gives details for the current year on
this count:
a. Zone-wise details of New Substations Commissioned during the year under report:
Sl. Name of the MVA Total Voltage Date of

District
No. Station added MVA class in MVA Commissioning
Bangalore Transmission Zone

1 Bangalore Urban Shobha Apartments 2 X 31.5 63.00 66/11 KV 21-01-2012
2 C B pura Pathapalya 1 X 12.5 12.50 66/11 KV 30-03-2012

Bagalkot Transmission Zone
Katakola
1 Belgaum (one transformer 2X10 10.00 110/33 KV 20-04-2011
commissioned)
2 Gadag Sambapur 1X10 10.00 110/11 KV 26-04-2011
3 Belgaum Shirgaon(Kotabagi) 2X10 20.00 110/11 KV 27-06-2011
4 Belgaum Boregaon 2X10 20.00 110/11 KV 25-07-2011
5 Bijapur Almel 2X10 20.00 110/11 KV 30-09-2011
6 Uttara Kannada Mundagoda 2X10 10.00 110/11 KV 05-12-2011
7 Belgaum Mamadapur 1X10 10.00 110/11 KV 28-03-2012
8 Belgaum Bidi 2X10 20.00 110/33 KV 30-03-2012
Gulbarga Transmission Zone
Ananthpur Road
1 Bellary 2X10 20.00 110/11 KV 17-08-2011
(Bislehally)
1X10 110/11 KV
2 Gulbarga Wadagera 20.00 03-10-2011
1X10 110/33 KV
2X10 110/11 KV
3 Bidar Hallikhed 40.00 12-01-2012
1X20 110/33 KV
1X10 110/11 KV
4 Bidar Dongaragoan 30.00 13-01-2012
1X20 110/33 KV
5 Raichur Maski 1X10 10.00 110/11 KV 14-03-2012
6 Raichur Byagwat 1X10 10.00 110/11 KV 24-03-2012
Hassan Transmission Zone
1X10 110/11 KV
1 Udupi Navunda 20.00 17-08-2011
1X10 110/33 KV

Sl. Name of the MVA Total Voltage Date of
District
No. Station added MVA class in MVA Commissioning
2 Shimoga Chandragutti 1X10 10.00 110/11 KV 17-10-2011

2X100 220/66 KV
3 Chikkamagalur Chikkamagalur 208.00 28-10-2011
1X8 66/11 KV
Mysore Transmission Zone
Gamanahalli
1 Mandya 1X8 8.00 66/11 KV 29-07-2011
(Kodukothanahalli)
2 Mandya Hadli 1X8 8.00 66/11 KV 29-07-2011
3 Mandya Shivalli (V.C. farm) 2X8 16.00 66/11 KV 25-08-2011
4 Mandya Kadaballi 1X8 8.00 66/11 KV 29-03-2012
5 Mysore Hullahalli 2X8 16.00 66/11 KV 30-03-2012
Tumkur Transmission Zone
1 Davanagere Harihara town 2 X 12.5 25.00 66/11 KV 13-01-2012
2 Tumkur Dasudi 1X8 8.00 66/11 KV 13-02-2012
Total MVA 652.50
b. Zone-wise details of Transmission Lines Commissioned during the year under

report:
Voltage Length
Sl. Date of
District Name of the Line class in of line
No. Commissioning
KV CKMs.
BANGALORE TRANSMISSION ZONE

Construction of 66 KV SC line
from Yennigadale-Chakavelu
1 CB Pura 66 KV 6.87 18-07-2011
to Somanathapura Station
(Yennigadale-Chakavelu_line)
67 KV 1C-1000 Sq mm UG cable
Bangalore
2 from HSR Layout Station (Shobha 66 KV 5.24 22-01-2012
urban
Apartments _line)
Repl of existing rabbit ACSR
conductor & RCC poles by Coyote
ASCR conductor & towers in the
3 CB Pura existing 66 KV SC tap line from 66 KV 0.00 17-01-2012
66 KV DC Gowribidanur-Bagepalli
Circuit-l line 66 KV Vatadahosahalli
S/s. (Gowribidanur-Bagepalli_Line)

Voltage Length
Sl. Date of
No. Commissioning
KV CKMs.
66KV SC line tapping from

4 CB Pura Bagepalli-Somanathapura line 66 KV 0.20 30-03-2012
(Pathapalya_Line)
BAGALKOT TRANSMISSION ZONE
Construction of 110 kv SC line on
DC towers for a distance of 13.51
1 Belgaum Kms from 110 KV S/s at Yaragati to 110 KV 13.51 20-04-2011
the proposed 110 KV S/s at Katakol
with TB (Katakola_line)
Construction of 110 KV LILO
line from 110 KV Gadag-Dambal
2 Gadag 110 KV 6.12 26-04-2011
DC line for a distance of 3.06
Kms(Sambapur_line)
Converting 110 KV SC line with
Lynx to 110 KV DC line with Drake
3 Dharwad with TBs (Narendra-Lakamanahalli- 110 KV 42.31 24-05-2011
Navanagar-Tarihal-Hubli-SRS_
line)
Construction of 110 KV SC line
on DC towers from proposed
4 Belgaum 110 KV 14.11 27-06-2011
220 KV Ghataprabha R/s
(Shirgaon_line)
110 KV SC line on DC towers from
5 Belgaum 110 KV Sadalga S/s and aTB at 110 KV 8.21 25-07-2011
Sadalga s/s (Boregaon_line)
Construction of 110 KV SC line on
DC towers from 110 KV sindagi s/s
6 Bijapur 110 KV 21.32 30-09-2011
to proposed 110 KV s/s at Almel
(Almel_line)
110 KV SC tap line on Dc towers
Uttara
7 from Hubli - Haveri line (Mundagod_ 110 KV 17.93 05-12-2011
Kannada
line)
220 KV DC line from 400 KV
Narendra to Mahalingapur with
8 Dharwad 220 KV 246.8 09-02-2012
TBs at Mahalingapur (Narendra-
Mahalingapur 220 KV _line)

Voltage Length
Sl. Date of
No. Commissioning
KV CKMs.
Const. of 110KV DC line from

tapping point of 110KV B.Bagewadi-
Bagalkot line to 110KV Nidagundi
S/s for making LILO arrangement at
9 Bagalkot 110 KV 1.54 27-03-2012
110KV Nidagundi S/s for a distance
of 0.77kms with TB at Nidagundi
S/s (Nidagundi-B. Bagewadi-
Bagalkot_line)
Const of 110KV SC line on DC
towers for a distance of 12kms
10 Belgaum from 110KV S/s at Gokak to the 110 KV 12.00 28-03-2012
proposed S/s at Mamadapur with
TB (Mamadapur_line)
110KV SC line on DC towers from
11 Belgaum Proposed 220 KV MK Hubli R/s 110 KV 16.15 30-03-2012
(Bidi_Line)
110KV SC line on DC towers
from 110kv Hattaragi S/s to Link
existing Hidkal Dam (GDPH)-
12 Belgaum 110 KV 21.54 31-03-2012
Ghataprabha line with TB at
Hattaragai S/s (Hattaragi-Hidkal
dam-Ghataprabha-Link line)
GULBARGA TRANSMISSION ZONE
Providing intermediate 220 KV DC
1 Bidar tower b/w 189 & 190 to 220 KV DC 220 KV 0.82 13-08-2011
line (Humnabad-Sedam_line)
Ananthpur Road(Bislehally_Line)
2 Bellary 110 KV 3.72 17-08-2011
110KV LILO line
110 KV SC line on DC towers
3 Gulbarga from Khanapur S/s with a TB at 110 KV 15.50 03-10-2011
Khanapura S/s (Wadagera_line)
110 KV LILO line from existing
4 Bidar 110 KV Humnabad_Bidar line 110 KV 1.34 12-01-2012
(Hallikhed_line)

Voltage Length
Sl. Date of
No. Commissioning
KV CKMs.
110 KV SC line from 110 KV

Santhapur S/s to proposed
5 Bidar Dongaragoan S/s for a distance of 110 KV 18.90 13-01-2012
18.895 kms with TB at Santhpur
(Dongaragaon_line)
a) Const. of 110KV link line

from Sindhanur to Siraguppa,
Kavithal, Raichur (6.897 kms)
6 Raichur 110 KV 10.92 09-02-2012
b) 110KV link line from Siraguppa,
Kavithal, Raichur (4.032 kms)
(Sindhanur evacuation_line1)
Const. of 110KV LILO line on DC

towers for a distance of 3.25kms
7 Raichur from 110 kv Sindhanur Hatti SC line 110 KV 6.50 14-03-2012
to the proposed 110KV S/s at Maski
(Maski_line)
110KV SC line tapping from existing

8 Raichur Raichur Sindhnur line (Byagwat_ 110 KV 9.30 24-03-2012
line)
HASSAN TRANSMISSION ZONE
Navunda_Line 110 KV SC tap line on

1 Udupi DC towers from existing Hiriyadka- 110 KV 25.00 17-08-2011
Kundapura line (Navunda_line)
110 KV SC line from Siddapura-

2 Shimoga 110 KV 10.56 17-10-2011
Sirsi line, (Chandragutti_line)
Construction of 220 KV Shimoga-

3 Chikkamagalur Mysore line(Chikkamagalur 220 KV 220 KV 57.10 28-10-2011
_ line)
Construction of 66 KV DC line
in the existing corridor of MBT
4 Hassan 66 KV 80.78 02-01-2012
line from Uddurhalli (Hassan-
Chikkamagalur_line)

Voltage Length
Sl. Date of
No. Commissioning
KV CKMs.
MYSORE TRANSMISSION ZONE

DC towers from Maddur S/s to K
1 Mandya 66 KV 8.09 02-06-2011
Honnalagere S/s with TB at both
ends(K-Honnalagere-Maddur_line)
Reconstruction of 66 KV Cu line to
coyote conductor on Dc towers in
2 Mysore the existing corridor, 10.6 Kms. With 66 KV 0.00 14-06-2011
a TB at Hootagalli S/s (Hootagalli-
Vijayanagar-FTS_line)
Stringing 66 kV SC line on existing
DC towers b/w 66 KV Gundlupet
S/s & 66 KV Hangala S/s tap point
3 C.R. Nagar 66 KV 9.42 22-06-2011
for a distance of 9.415 Kms with TB
at Gundlupet (Gundlupet-Hangala_
line)
4 Mandya Dc towers from Tubinakere-Arakere 66 KV 7.88 29-07-2011
line (Gamanahalli_line)
66 KV SC tap line on DC towers
5 Mandya from 66 KV TK halli- Mandya line 66 KV 0.20 29-07-2011
(Hadli_line)
66 KV SC tap line on DC towers
with coyote from Tubinakere-
6 Mandya 66 KV 6.92 25-08-2011
Nagamangala line (Shivalli/ V.C.
farm_Line)
Const. of 66 KV SC line on DC
towers from MHS at KRS North
7 Mandya bank to existing 66 KV Belagola 66 KV 7.65 25-01-2012
S/s with TB at both ends.(Belagola-
Atria _Line)
Providing 66 KV LILO arrangement
to the existing Sathegala S/s from
8 Chamarajanagar 66 KV 2.06 31-01-2012
tapping point of 66 KV SFC_Kollegal
SC line (Sathegala_Line)

Voltage Length
Sl. Date of
No. Commissioning
KV CKMs.
Const. of 66KV SC Coyote ACSR

line for a route length of 10.03 kms
between Shimsha and T.K.Halli
9 Mandya 66 KV 0.00 21-03-2012
in the existing 66 KV SC CAT
conductor line corridor (Shimsha-
TK_Halli line)
66KV SC tap line on DC towers
10 Mandya from 66kv Hirisave-BG Nagar line 66 KV 1.05 29-03-2012
(Kadaballi_Line)
66KV line tapping from Kadakola -

11 Mysore 66 KV 1.36 30-03-2012
Saragur line (Hullahalli_Line)
Const. of 220 KV DC line for a
length of 41.557 kms along with TBs
12 Chamarajanagar 220 KV 83.12 30-03-2012
(Madhuvanahalli _ Chamarajanagar
Line)
TUMKUR TRANSMISSION ZONE
66 kv DC towers from 220 KV DVG

1 Davanagere to 400 KV Guttur (Davanagere- 66 KV 45.24 30-10-2011
Guttur 66 KV SC_ line)
66 KV SC tapping line from 66 KV
2 Davanagere SRS Davanagere Harihara-Hospet 66 KV 0.24 13-01-2012
SC line (Harihara Town_Line)
66 KV Sc line on DC towers from
3 Tumkur Hiriyur Javagondanahalli-Sira 66 KV 28.42 13-02-2012
line(Dasudi_line)
TOTAL LENGTH IN CKMs 875.92
c. Zone-wise details of AUGMENTATION OF STATIONS during the year under report:

Name Voltage
Sl. MVA Nature of Date of
District of the Capacity class in
No. Added work Commissioning
Station KV
BANGALORE TRANSMISSION ZONE
Replacement of 1X12.5
1 Kolar Malur MVA by 20 MVA 66/11 7.50 66 KV Replacement 21-05-2011

KV transformer

Name Voltage
Station KV
Replacement of 8 MVA
2 Kolar Lakkur by 12.5 MVA 66/11 KV 4.50 66 KV Replacement 31-05-2011
transformer
3 Kolar Tekal by 12.5 MVA 66/11 KV 4.50 66 KV Replacement 02-06-2011
transformer
4 CB Pura Peresandra by 12.5 MVA 66/11 KV 4.50 66 KV Replacement 02-06-2011
transformer
Replacement of 12.5
5 Kolar Kyasamballi MVA by 20 MVA 66/11 7.50 66 KV Replacement 16-06-2011
KV transformer
Providing additional
Bangalore
6 EPIP 1X31.5 MVA, 66/11 KV 31.50 66 KV Additional 01-10-2011
Urban
Tr.
7 Ramanagar Bevoor MVA by 1X12.5 MVA 6.20 66 KV Replacement 28-11-2011
66/11 KV Tr
Replacing 1 X 12.5
Bangalore
8 Attibele MVA by 1x20 MVA 7.50 66 KV Replacement 15-12-2011
Urban
transformer
Additional 1 X 8 MVA
9 Ramanagar Agalakote 8.00 66 KV Additional 17-01-2012
66/11 KV Transformer
Replacement of 1 X 20
Bangalore St.Johns
10 MVA,66/12.1 KV by 1 X - 66 KV Replacement 21-01-2012
Urban wood
20 MVA 66/11 KV Tr.
Replacing 1 X 12.5
11 Kolar Mulbagal MVA by 1 X 20 MVA 7.50 66 KV Replacement 07-02-2012
transformer
Addnl. 1 X 8 MVA, 66/11

12 Kolar Avani 8.00 66 KV Additional 30-03-2012
KV Tr.
Addnl. 1 X 8 MVA, 66/11
13 Kolar H Gollahalli 8.00 66 KV Additional 31-03-2012
KV Tr.
BAGALKOT TRANSMISSION ZONE
Providing 10 MVA,
Uttara 110/11 KV Transformer 220/110
1 Sirsi 10.00 Additional 21-05-2011
Kannada at 220 KV Switching KV
station at Sirsi

Name Voltage
Station KV
Replacement of 1X5
2 Gadag Naregal MVA by 1X10 MVA, 5.00 110 KV Replacement 21-05-2011
110/11 KV Tr.
Replacement of 1X10
MVA, 110/11 KV
3 Belgaum Gokak 10.00 110 KV Replacement 17-06-2011
Transformer by 1X20
MVA, 110/11 KV Tr.
Replacement of
2X10 MVA by
2X20MVA,110/33 KV Tr.
4 Gadag Gadag 10.00 110 KV Replacement 05-07-2011
(1 Transformer replaced
during previous financial
year)
Creating 33 KV
reference at existing
5 Bagalkot Rampura 110 KV Rampura S/s by 10.00 110 KV Additional 22-08-2011
providing 1X10 MVA,
110/33 KV Transformer
Addl. 20 MVA, 110 / 33
6 Belgaum Ankali_aug 20.00 110 KV Additional 27-12-2011
KV tr.
Creating 33 KV
reference and installing
Nippani_
7 Belgaum 1 X 20 MVA, 110/33 KV 20.00 110 KV Additional 09-01-2012
aug
Transformer at Nippani
110kv S/s
Navanagar
Addnl 1 X 10 MVA
8 Dharwad (Hubli)_ 10.00 110 KV Additional 04-02-2012
110/11 KV Tr
aug
Gopanakoppa Addnl 1 X 10 MVA
9 Dharwad 10.00 110 KV Additional 28-02-2012
_aug 110/11 KV Tr
Replacing 1 X 10 MVA
Mache_
10 Belgaum 110/11 KV Tr by 1 X 20 10.00 110 KV Replacement 18-03-2012
aug
MVA 110/11 KV Tr
Repl of 1 X 10 MVA
Hanagal_
11 Haveri 110/33 KV Tr by 1 X 20 10.00 110 KV Replacement 20-03-2012
aug
MVA Tr.
Creating 33 kv reference
Mruthyunjayanagar
12 Dharwad by installing 1 X 20 MVA 20.00 110 KV Additional 29-03-2012
_aug
110/33 kv Tr.
Addnl. 1 X 10 MVA,
13 Dharwad Belur_aug 10.00 110 KV Additional 31-03-2012
110/11 KV Tr.

Name Voltage
Station KV
GULBARGA TRANSMISSION ZONE
Replacement of 1X 6.3
MVA, 66/11 KV Tr. By
1 Bellary UP Halli 6.20 66 KV Replacement 13-04-2011
1x12.5 MVA, 66/11 KV
Tr.
Raichur_ Repl 1X10MVA Tr by
2 Raichur 10.00 110 KV Replacement 30-09-2011
aug 1X20 MVA 110/11 KV Tr
Repl. 1X10MVA,
Thorangal_
3 Bellary 110/33KV by 1X20MVA, 10.00 110 KV Replacement 16-11-2011
aug2
110/33KV Transformer.
Sriram Addl 1 X 10 MVA 110/11

4 Koppal 10.00 110 KV Additional 05-01-2012
Nagar_aug KV tr.
Venkatagiri_ Addl 1 X 10 MVA 110/11

5 Koppal 10.00 110 KV Additional 05-01-2012
aug KV tr.
Providing Additional
Kampli_
6 Bellary 1X10 MVA, 110/11 KV 10.00 110 KV Additional 12-01-2012
aug
Tr.
Replacement of 1 X
Donimalai_ 10 MVA, 110/33 KV
7 Bellary 10.00 110 KV Replacement 24-01-2012
aug Transformer by 1 X 20
MVA 110/33 KV Tr
Repl. 1 X 8 MVA,
C.J.Halli_ 66/11KV by 1 X
8 Bellary 4.50 66 KV Replacement 28-02-2012
aug 12.5 MVA, 66/11 KV
Transformer.
Hampasagar Addnl. 8 MVA, 66/11 KV

9 Bellary 8.00 66 KV Additional 29-02-2012
_aug Tr.
Kavital_ Providing addnl 20 MVA,

10 Raichur 20.00 110 KV Additional 20-03-2012
aug 110/33 KV Tr
Providing additional
Tekkalkote_
11 Bellary 1X10 MVA, 110/11 KV 10.00 110 KV Additional 21-03-2012
aug
Tr.
Chikkasugar_
12 Raichur 1X20 MVA, 110/11 KV & 40.00 110 KV Additional 24-03-2012
aug
1X20 MVA,110/33 kV Tr.
HASSAN TRANSMISSION ZONE
Chikkama Lakkavalli_ Additional 1 X 8 MVA

1 8.00 66 KV Additional 03-10-2011
galur aug 66/11 KV Transformer

Name Voltage
Station KV
Addln. 1X10 MVA,
2 Shimoga Kumsi_aug 10.00 110 KV Additional 13-10-2011
110/33-11 KV Tr
3 Shimoga Alkola_aug 1X10 MVA, 110/11 KV 10.00 110 KV Additional 10-11-2011
Tr.
Replacement of 1 X 10
Chick Tarikere_
4 MVA by 1 X 20 MVA 10.00 110 KV Replacement 25-01-2012
magalur aug
110/11 KV Tr
Mandli_ Repl of 1 X 10 MVA by 1

5 Shimoga 10.00 110 KV Replacement 03-02-2012
aug X 20 MVA 110/11 KV Tr.
MYSORE TRANSMISSION ZONE
Additional 6.3/8 MVA

66/11 KV transformer
1 Kodagu Ponnampet 6.30 66 KV Replacement 14-06-2011
and releasing 5 MVA
33/11 KV transformer
TUMKUR TRANSMISSION ZONE
Providing additional 1X8

1 Chitradurga Garaga 8.00 66 KV Additional 23-04-2011
MVA, 66/11 KV Tr.
Davanagere_ Additional 1X20 MVA

2 Davanagere 20.00 66 KV Additional 20-06-2011
aug 66/11 KV Transformer
11-07-2011
3 Tumkur Mallasandra MVA by 2X12.5 MVA 12.40 66 KV Replacement
transformer
Additional 8 MVA 66/11

4 Davanagere Anagodu 8.00 66 KV Additional 11-08-2011
KV transformer
Addnl. 8 MVA, 66/11 KV

5 Davanagere Kukkawada 8.00 66 KV Additional 12-08-2011
Tr.
Addnl. 8 MVA, 66/11 KV

6 Davanagere Pallaghutta 8.00 66 KV Replacement 18-08-2011
Tr.
Bellavi_ Repl of 2 X 8 MVA 66/11

7 Tumkur 9.00 66 KV Replacement 03-10-2011
aug KV Tr by 2X12.5 MVA Tr
Honnavalli_ Addl 10 MVA 110/11

8 Tumkur 10.00 110 KV Additional 01-12-2011
aug KV tr.
Turuvanur_ Providing additional 1 X

9 Chitradurga 8.00 66 KV Additional 13-02-2012
aug 8 MVA, 66/11 KV Tr.

Name Voltage
Station KV
Halvagilu_ Addnl. 8 MVA, 66/11 KV
10 Davanagere 8.00 66 KV Additional 17-02-2012
aug Tr.
Replacement of existing
Myalanahalli_ 1X 6.3 MVA,66/11 KV

11 Chitradurga 6.20 66 KV Replacement 14-03-2012
aug Transformer by 1 X 12.5
MVA Tr
Replacement of 2 X 12.5
MVA by 2 X 20 MVA
Yaragunta_
12 Davanagere 66/11 KV transformer 7.50 66 KV Replacement 29-03-2012
aug
(1 Transformer
augmented)
TOTAL MVA ADDED 576.3
ABSTRACT
(a) NEW STATIONS COMMISSIONED:
Programme upto the Progress achieved upto the

Sl.
Voltage end of March 2012 end of March 2012
No.
NOs. MVA NOs. MVA
1 400 KV - - - -
2 220 KV 6 1593.5 1 208
3 110 KV 25 460 16 280.00
4 66 KV 20 314.3 9 164.5
TOTAL 51 2367.8 26 652.50
(b) TRANSMISSION LINES COMMISSIONED:-

Sl.
No.
NOs. CKMS NOs. CKMS
1 400 KV 2 664 - -
2 220 KV 6 283.127 4 387.84
3 110 KV 25 258.202 20 276.47
4 66 KV 20 131.915 19 211.61
TOTAL 53 1337.244 43 875.92

(c) AUGMENTATION OF STATIONS :-

Sl.
No.
NOs. MVA NOs. MVA
1 400 KV 2 1000 - -
2 220 KV - - 1 10.00
3 110 KV 31 405.00 26 325.00
4 66 KV 14 121.5 29 241.30
TOTAL 47 1526.5 56 576.30
SUPERVISION CONTROL & DATA ACQUISITION FOR LOAD

AND ENERGY MANAGEMENT
KPTCL is a pioneer in establishing:
The largest SCADA network in the country with respect to coverage and number
of Control centres.
The largest individually owned VSAT network
The first in the country among the State Utilities to provide Control Centres to all
ESCOMs and Chief Engineers
The first utility in the country to integrate multiple automations systems.
The first State Utility to envisage a Disaster Recovery Hub for the SCADA Master
Control Centre
Integrated Extended SCADA Features:
Covers all receiving stations ranging from 33kV to 400kV
Real time data acquired from all Major Generating stations.
Real time data acquired from all IPP and NCEP injections
Data and control of all feeders from 11 kV to 400 kV.
Real time support for Load Dispatch and control
Area Load Despatch Centre for Six Transmission Zones
Distribution Control Centre for Five ESCOMs
Upgradation of State Load Despatch Centre.
Voice communication to all stations on VSAT

Availability Based Tariff displays and functions.
Monitoring of Open Access Generations.
Real time Energy Data Acquisition from all Interface points.

Energy Management System and Distribution Management System
Owned VSAT Hub and network with leased bandwidth from INSAT 3A for
communication for the entire network
Disaster Recovery Hub for the Main Control Centre
First step towards total remote operation of Sub-stations

Disturbance analysis by playback of Grid operation.
Utilization for Special protection scheme at Generation corridors
Integrated Extended SCADA Stations covered:
ZONE STATIONS
PHASE-I PHASE-2
BANGALORE 153 58
TUMKUR 111 54
MYSORE 67 42
HASSAN 87 52
GULBARGA 63 55
BAGALKOT 107 65
TOTAL 588 326
914
KPTCL has provided SCADA systems for 9 Nos of IPPs in addition to the above.
Following balance works are to be undertaken:
Phase II works SCADA, RTU and VSAT at 55 Nos of Stations
Intra State ABT system (Customisation in progress)
Energy Management Functions
Energy Audit and Energy billing Functions
Operator Training Simulator
TENDERING AND PROCUREMENT
During the year 2011-12, KPTCL has procured various equipments like, Power
Transformers, switchgears, Circuit Breakers, Current Transformers, Isolators, Potential

Transformers CVTs, Insulators, Transformer oil required for augmenting the installed capacities
in sub stations, besides other associated equipment like Battery Chargers, Battery Sets for
replacement of deteriorated batteries in stations. In addition to this, testing and measuring
equipments like flash point apparatus, on line DC Earth fault locators, Interface tension meter,
transformer winding resistance meter etc., required for meeting day to day needs of Relay
Testing and R&D Wings have also been procured.
Further, 11 KV Switchgears especially required for implementation of Niranthara Jyothi
Schemes in ESCOMs for putting up independent and dedicated 11 KV feeders for catering
the loads of both lighting and motive power installations of the villages on 24 hrs basis, is being
procured from MEI.
During the year 2011-12 KPTCL has awarded works covering 37 stations related to
construction of new Stations and Lines of 66 KV, 110KV & 220 KV & 400KV voltage class and
413.81 Kms of 66/110/220 KV Over Head including UG cable lines valued at Rs.75585.64
lakhs.
Amongst the works awarded, some of the specialized works included are:
a) Establishing 400KV GIS Sub-Station at Mylasandra and 66/11KV GIS Station at
National College & Jayanagar.
b) Renovation and Modernization works at 220KV substations at Hubli, Ambewadi
and Somanahalli.
c) Providing 3rd 100MVA Transformers at 220KV substations at Gowribidanur,
Gadag and Karwar.
d) 220KV evacuation lines from the 400KV substation of PGCIL at Bidadi.
e) Laying of 66KV 1000 sqmm UG cable in Bangalore city from
1) Vrushabhavathi Sir. M.V. Layout.
2) Vikastech Park Shobha Developers.
f) Laying of 110kV UG Cable from Kavoor Bejai.
Following is an abstract of award of works & Procurement during the financial year
2011-12.
1. WORKS:-
Tendered works for the year 2011-12
No. of Tenders Amount in
Works involving
floated Rs. Lakhs
66kV Air Insulated Stations - 15Nos.
66kV O.H Lines - 206.6Kms (6Nos.)
66kV UG Cable - 3.04Kms (1No.)
66kV TBs - 3Nos.
110kV and
51 35114.94 110kV Air insulated Stations - 17Nos.
below works
110kV OH Lines-254.7Kms (3Nos).
110kV UG Cable - 10.68Kms (2Nos).
110kV TBs -4Nos.
66kV HTLS - 6Nos (37.62Kms).

No. of Tenders Amount in
Works involving
floated Rs. Lakhs
400kV, 500MVA Additional Transformers - NIL.
220kV Air insulated Stations - 5Nos.
400kV GIS station - 1No.
220kV GIS station - NIL.
220kV R&M Works - 4Nos.
220kV O.H Lines - 159.71Kms.
220kV &
21 51987.95 110kV O.H Lines - 14.999Kms.
above works
220kV TBs - 15Nos.
110kV TBs - 5Nos.
66kV TBs - NIL.
Augmentation works (Addnl 100MVA Trfs) - 5Nos.
Dismantling 220kV line - 42Kms.
66kV GIS Station - 2Nos.
66kV Air Insulated Stations - 14Nos.
66kV O.H Lines - 119.73Kms(3Nos.)
66kV UG Cable - 9.1Kms(2Nos.)
110kV and
44 28085.34 66kV TBs - 6Nos.
below works
110kV Air insulated Stations - 20Nos.
110kV OH Lines-274.06Kms(2Nos).
110kV UG Cable - 5.85Kms(1No).
110kV TBs - 7Nos.
400kV, 500MVA Additional Transformers - NIL.
220kV Air insulated Stations - NIL.
400kV GIS station - 1No.
220kV GIS station - NIL.
220kV R&M Works - 3Nos.
220kV &
10 23750.15 110kV O.H Lines - NIL.
above works
66kV O.H Lines - NIL.
220kV TBs - 5Nos.
110kV TBs - NIL.
66kV TBs - NIL.
Augmentation works (Addnl 100MVA Trfs) - 3Nos.
Dismantling 220kV line - 42Kms.

2. GOODS:-
Procurement of Goods for the year 2011-12

Amount in Works involving
Descriptions
Rs. Lakhs
Power Transformers, Circuit Breakers, Current

Transformers, Battery Sets, Battery Chargers,
11 KV Switchgears, Isolators, PTs, CVTs, Station capacity
Insulators, Transformer oil, NFES, uniforms, augmentation, replacements
10750.72
LA, Aluminum ladder, Protection couplers, and testing and measuring
wave Traps, furniture, Printer, Laptop, Services activities etc.,
like canteen attender, security services and
Vehicles.
The total cost towards award of works, goods and services during the year 2011-2012 is
Rs. 77665.52 lakhs.
NEW INITIATIVES TAKEN UP BY THE UTILITY DURING THE YEAR UNDER REPORT:
1. GIS SUB-STATIONS
GIS Sub-station is a good option in cities where availability of large extent of land for AIS
station is difficult and land cost is high.
Gas Insulated Sub-station(GIS) is a compact, multicomponent assembly enclosed

in a ground metallic housing in which primary insulating medium is compressed Suplhur
Hexafloried (SF6) gas.
Advantages of GIS Sub-stations:
1. GIS has small ground space requirements (about 10 to 25 percent of space required
for AIS)
2. Gas Insulated Sub-station have easy maintenance (nearly Zero maintenance).
3. Less field erection time and less erection cost.
2. HYBRID SWITCH GEAR
With the advent of GIS a number of manufacturers have come out with interface modules
which are in between AIS and GIS. The sub-station capacity expansion by compaction of
space occupied by AIS equipment is therefore possible with the use of Hybrid Switchgear.

Hybrid solutions combine five functions of traditional AIS Sub-station, namely Circuit Breaker,
Disconnector, Earth Switch, current Transformer and Voltage Transformer into one SF6
encapsulated module. It has following advantages:
1. Space saving upto 50-60% can be achieved compared to an AIS station in low
voltage system
2. It has high reliability due to usage of GIS components and technology.
3. Installation is fast and easy.
4. It allows flexibility in application of design and layout.
3. HTLS (HIGH TEMPERATURE LOW SAG) CONDUCTORS
The HTLS ACCR (Aluminium Conductor Composite Reinforced) conductor is newly

developed and consists of the core of Aluminium Composite wires surrounded by temperature
resistant Aluminium Zirconium wires. These conductors are used for the existing towers
(of short lines) to uprate the current carrying capacity without altering the Sag. For same sag
the thermal rating of the HTLS Conductor is almost twice that of ACSR Conductor (Aluminum
Conductor with Steel reinforcement).
KPTCL has already prepared the specification and tenders have been floated for
existing line, in and around Bangalore city.
4. SUBSTATION AUTOMATION SYSTEM (SAS)
The Substation Automation System (SAS) is installed in Sub-Station to control and

monitor all the substation equipments from Remote Control Centre i.e. from LDC as well
as from local control centre (from station Control Room). 24 numbers of 220kV Stations are
provided with SAS.
5. POST PROJECT ANALYSIS STUDY ENTRUSTED TO M/S ABB LIMITED.
Out of 300 Sub-stations commissioned during 2007 to 2010 it was decided to

conduct an analysis of Post Project benefits of 20% of the commissioned Sub-stations i.e 60
Sub-stations. The firm has analysed the various parameters like energy savings, cost to benefit
ratio, Voltage regulation, spare capacity available for future load growth etc., of 30 Stations
and the findings of the study is that tail end voltages have improved, the energy savings are
validated , the cost to benefit ratio is 3.49 justifying the investments made.

6. LOAD FORECAST STUDY FOR 12TH AND 13TH PLAN PERIOD AND LONG TERM
PERSPECTIVE PLAN
KPTCL has independently selected consultancy firm through tendering process and
awarded the work of Energy/Demand forecast to M/s PRDCL. The scope also includes
Generation planning, Perspective plan for 12th & 13th Plan period.
RELAY AND TESTING:
1. Details of total number of Power Transformers existing as on 31.3.2012:
Capacity of the
Sl. RT Circle RT Circle RT Circle RT Circle
Transformer (in Total
No. Bangalore Hassan Hubli Gulbarga
MVA)
1 315 2 3 - - 5
2 167 14 - - - 14
3 150 13 - - - 13
4 100 61 39 39 23 162
5 75 - 2 - - 2
6 67.5 2 - - - 2
7 60 1 - - - 1
8 55 - - 2 - 2
9 50 1 - 1 - 2
10 31.5 58 - - - 58
11 20 191 52 114 69 426
12 15 2 - - - 2
13 12.5 154 97 3 9 263
14 10 44 93 300 163 600
15 8 215 149 1 17 382
16 6.3 69 52 - 12 133
17 5 2 9 3 5 19
18 1 - - 2 - 2
TOTAL 829 496 465 298 2088

2. Details of Power Transformers repaired during the year 2011-12:
Voltage
Power
Sl. class of Capacity
Transformer Make Repaired by Remarks
No. Transformer in MVA
failed at
in KV
I RT Circle, Bangalore
Commissioned at
1 66kV BMTC 66/11 20 BB BB
Kanakapura S/s on 26.09.11.
220kV Commissioned at EPIP S/s
2 66/11 31.5 BB BB
Hoody on 01.10.11.
66kV Commissioned at Vicoria S/s

3 66/11 20 NGEF SVS
Victoria on 29.07.2011.
Commissioned at
66kV
4 66/11 20 Apex SPEC Bannerghatta S/s. on
Banneraghatta
14.09.11
220kV Commissioned at HSR
5 220/66/11 100 NGEF KK Rao
Hoody Layout R/s on 25.02.2012.
DI issued to 220kV
220kV Gowribidanur R/s. vide no.
6 220/66/11 100 Apex KK Rao
Malur 8259-65 on 31.10.11 erection
work is under progress
66kV Commissioned at Madhugiri
7 66/11 12.5 BBL TTL, Mumbai
Tumkur on 17.11.11
66kV
Volt Commissioned at
8 Sahakari 66/11 20 TTL, Mumbai
Amp Gowribidnur R/s on 12.01.12
nagar
Vidyuth Transformer commissioned
220kV
9 220/66/11 100 BHEL Transformers, at Somanahalli R/s on
Somanahalli
Gujarat 02.03.2012.
Standard Transformer alloted to

Volt
10 66kV Anekal 66/11 20 Transformers, Electronic City S/s on
Amp
Udupi 13.03.12.
Blaze
66kV Final inspection conducted
11 66/11 12.5 Apex Electricals,
Challakere on 29.02.12 and 01.03.12.
Hospet

Voltage
Power
failed at
in KV
66kV RR TTL, Allotted to Adugodi on
12 66/11 20 EMCO
Nagar Mumbai 29.03.2012
II RT Circle, Hassan
110kV Put back to service after

1 110/11 10 SPEC Departmentally
Kallusadarahalli repairs at site by RT staff
66kV Hally Put back to service after

2 66/11 5 Kirloskar Departmentally
mysore repairs at site by RT staff
110kV Commissioned at Salettur

3 110/11 10 Apex Departmentally
Konaje MUSS on 5.3.2012
Repaired at Kavoor repair
bay, drying process taken
110kV Indo at Standard Tr. Manipal
4 110/33 20 Departmentally
Guruvayankere tech & tested on 07.07.2011
& commissioned on
18.07.2011
Repair works completed and
220kV
5 66/11 8 SPEC Departmentally shifted to Doddabyadarahally
Huygonahalli
on 24-04-2012
Repaired and put back to

66kV
6 66/11 12.5 EMCO Departmentally service at Honnally on 23-
Honnalli
01-2012.
III RT Circle, Hubli

110kV GEC
1 110/11kV 10 Departmentally 110kV Hangal on 19.10.2011
Hirekerur Alstom
110kV GEC 110kV Gopanakoppa on
2 110/11kV 10 Departmentally
Moratagi Alstom 28.02.2012
110KV Volt 110KV Navanagar on
3 110/11KV 10MVA Departmentally
Navanagar Amp 04.02.12
110KV 10
4 110/11 KV SPEC SPEC & ER Udakeri on 19.03.12
Udakeri MVA

Voltage
Power
failed at
in KV
Peninsula
110KV 10
5 110/36.3 KV NGEF Heavy Elec. Mudhol on 17.02.12
Bagalkot MVA
Pvt.Ltd
220KV
6 220/110 KV 100 EMCO EMCO & ER 220KV Bagalkot on 07.06.11
Bagalkot
IV RT Circle, Gulbarga
220kV Commissioned on
1 110/11 10 APEX Departmentally
Sedam 28.06.2011
2 110/11 10 SPEC Departmentally
Chitaguppa 24.01.2012
3 110/11 10 NGEF Departmentally
Kapanoor 12.03.2012
110/11 kV NGEF
Repaired and charged on
4 Manna-E- 110/11 kV 10 280005 Departmentally
04.06.2011
Khelli 5761
M/s Precision
NGEF
110/11 kV Engineering
5 110/11 kV 10 280004 Shifted the Trf. to Shahapur.
Humnabad Works,
6879
Bangalore
EMCO
110/33-11 kV LT- EMCO Commissioned On
6 110/33-11kV 10
Rajeshwar 1153/1 WGP 22.07.2011
3039
EMCO
M/s K.K.Rao
110/33-11 kV HT- Repaired & delivered at 220
7 110/33-11kV 20 Eng Works,
Kustagi 1391/1 kV R/S Raichur Aug-2011
Hyderabad
178
NGEF
110/33-11 kV M/s Tarapur, Repaired received at
8 110/33-11kV 10 28000
Manvi Mumbai Gulbarga (South) 21.10.2011
46881
EMCO
110/11 kV HT- EMCO Commissioned On
9 110/11kV 20
Manvi 1712/1 WGP 10.11.2011
2721

Voltage
Power
failed at
in KV
EMCO
110/11 kV LT- EMCO Commissioned On
10 110/11kV 10
Khanapur 1153/1 (FWGP) 26.11.2011
3035
NGEF M/s K.K.Rao
110/11 kV Commissioned at Munirabad
11 110/11kV 100 68000 Eng. Works,
Lingasugur power house on 17.02.2012
00185 Hyderabad
FOREST WING
During the year 2011-12 State Government Orders were issued for handing over the
corridor in forest areas for four Transmission Lines viz., 1) Vajramatti Mantur Line, 2) Malur
Somanahalli Line, 3) Shantigrama (Hassan) Nandikur (Udupi) Line and 4) BTPS to Hiriyur
Line. During the year, the Ministry of Environment and Forests, Government of India issued
Stage-I approval to 1) Kodihalli Hunasanahalli Line, 2) Hassan Melagodu Transmission
Lines and 3) and Madavu Sub-Station.
The diversion proposals of following Transmission Lines seeking forest land are
at various stages of processing by the State and Central Governments. These cases are
being monitored constantly and pursued effectively for expeditious approval under Forest
(Conservation) Act 1980:
1. Kodihally to Hunsanahally Line
2. Madavu to Sulya
3. Hulical to Varahi
4. Guruvayanakere to Netlamadanur
5. Hassan to Melagodul Line
6. Konanadur Line
7. Substaion at Madavu
8. Mulibetta to Siddakatte
9. Virajpet to Madikery
10. Lingadahally to Hemmedoddy
11. Substation at Kansur Village
12. 110/11 Kv Substation at Bilalkanda Village
13. 110 Kv Substation at Hattaragi
14. 110/11 Kv Substation at Banavasi

15. Gunjur Palya Line
16. Temporary Diversion of 0.837 HA in Belur SF(Hassan-Nandikur Line)
REGULATORY AFFAIRS
1. Transmission Tariff: KPTCL filed its Annual Performance review application for
FY 2010-11 on 25.11.2011 based on Audited Annual Accounts.
2. In the Annual Performance Review, an ARR of Rs. 1452.60 Crores was filed
against a Revenue of Rs. 1215.22 Crores.
3. Revised ARR for FY-12 and Revised Transmission Tariff Application for FY-13
was filed on 02.03.2012. Revised ARR of Rs. 1918.61 Crores was filed against
an approved ARR of Rs. 1542.13 Corers for FY -12.
4. Revised Transmission Application was filed with Revised ARR of Rs. 2266.82
Crores against approved ARR of Rs. 1769.74 Crores for FY-13.
5. Petitions: 33 petitions were filed before KERC during FY 2011-12 and KERC
passed 13 Orders during the year.
HUMAN RESOURCES AND DEVELOPMENT
Details of training conducted during the year under report are as under:
a. Training programme for women officers/ officials.
b. Training on first aid and fire fighting.
c. Training on maintenance of Sub-station as well as maintenance of battery.
d. Deputation of employees/ officers to external training programmes.
e. Training on Pre- retirement counseling for all cadres of employees of ESCOMs

and KPTCL.
f. Induction training programme for newly recruited AEs and JEs 2010 batch (left
out batch) and NGEF employees after confirmation.
g. Personality Development Programme for all Officers and employees of

KPTCL.
h. Pre-employment training programme for Junior Meter Readers of CESC.
i. Refresher training programme for all technical staff of KPTCL
j. Orientation training programme for SA1 & 2 and SM 1&2 of KPTCL.
k. Pre-employment training programmee for newly recruited AE/JEs on transfer

from JE to AE.

Staff Pattern of Officers/Employees in KPTCL is as follows:
Group Sanctioned (2007) Working Vacant

A 1174 929 245
B 1436 964 472
C 5572 3529 1943
D 6218 3861 2357
Total 14400 9383 5017
Important Administrative orders issued during 2011-12 are as follows:
1. Order No: KPTCL/B16/18239/2010-11 dated: 12.05.2011 adopting Government

Order with regard to enhancement of rates of Pension/Family Pension w.e.f
01.04.2006 for those of employees who had retired prior to 01.07.1993 and who
are 80 years of age and above.
2. Notification for amending the method of recruitment prescribed in Sl.No.12 A(i)

Junior Engineer (Ele)/ Store keeper GR-II under Chapter VI of the Karnataka
Electricity Board Recruitment and Promotion Regulations, Employees (Probation)
Regulations and Employees (Seniority) Regulations vide no. KPTCL/B16/B5/
BGM/11836/2009-10 dated: 23.05.2011 duly including Information Science and
Mechanical Engineering disciplines.
3. Notification for amending the Regulation (5)-Application for appointment of KEB

Recruitment (Appointment on Compassionate Grounds) Regulations, 1997
vide no. KPTCL/B5/721/MYR/14768/ 10-11 dated: 23.05.2011 where in the
dependent son/ daughter of the deceased employee if a minor he/she must
have attained the age of 18 years within one year from the date of death of an
employee and he/she must make an application for appointment within one year
there after.
4. Order No. KPTCL/B16/B14/4977/05-06 dated: 29.08.2011 for sanction of lump

sum compensation to the dependents of deceased employees (based on
their length of service) covered under the New Defined Contributory Pension
Scheme.
5. Order No. KPTCL/B16/23050/11-12 dated: 09.09.2011 for revising the pay

scales of workmen w.e.f. 01.04.2010.
6. Order No. KPTCL/B16/23051/11-12 dated: 09.09.2011 for revising the pay

scales of officers w.e.f. 01.04.2010.
7. Notification for amending the Regulation 6(1)-Appointment by the Competent

Authority of KEB Recruitment (Appointment on Compassionate Grounds)

Regulations 1997, where in the Appointing Authority (SEE of O & M Circles
of ESCOMs) is delegated the powers of processing of compassionate ground
appointment claims vide no. KPTCL/B5/721/80-81 dated: 17.09.2011.
8. Notification was issued amending the cut -off marks prescribed for the post of
Assistant Lineman under Direct Recruitment quota in Note(1) of Regulation 6(a)
(iii) under Chapter I of KEB Recruitment and Promotion Regulations Employees
(Probation) Regulations and Employees (Seniority) Regulations vide No: KPTCL/
B16/7962/09-10 dated: 24.09.2011.
9. Circular instructions/ guidelines for processing of compassionate grounds
appointment claims at O & M Circle level vide No: KPTCL/B5/721/80-81 dated:
23.09.2011.
10. Consequent to revision of pay scales Order No. KPTCL/B16/23050/11-12 dated:

24.11.2011 was issued duly modifying the relevant provisions of Classification
of Appointments in KEB Recruitment and Promotion Regulations, Classification
of employees, regulating the payment of TA and payment of Advances to
employees.
11. Order No. KPTCL/B16/4677/06-07 dated: 31.12.2011 was issued adopting the
Government Order with regard to payment of Interim relief to pensioners and
family pensioners.
INTERNAL AUDIT
Internal Audit is being conducted with reference to the Sanctions, Rules/Regulations

and orders issued by the KPTCL or other Competent Authority, instructions contained in the
KEB Accounts Manuals, BESR and other Regulations / Instructions issued from time to time.
STATEMENT SHOWING THE DETAILS OF EXCESS / PAYMENTS / IRREGULAR

EXPENDITURE AND AUDIT PARAS ISSUED DURING THE YEAR 2011-12.
(April-2011 to March-2012)
(Rs. In Lakhs)
Opening Pointed Recovery / Closing
Particulars Total
Balance Out Regularized Balance
Excess Payments 165.58 73.85 239.43 139.25 100.18
Irregular expenditure 865.69 322.79 1188.48 219.08 969.40
Audit Reports (in Nos) 928 1382 2310 1553 757

CORPORATE GOVERNANCE
KPTCL believes transparency, responsibility, accountability and fairness in all aspects

of its operations.
Board of KPTCL believes and supports Corporate Governance Practices ensuring

observance of best practices in all its dealings.
The Governance process in the company includes an effective post- meeting follow-
up, review and reporting process for Action Taken/pending on decisions of the Board & Board
Sub-committees.
As on 31st March 2012, the Board of Directors comprised of 15 members. All the
Directors take active part in the proceedings of Board and Sub- Committee meetings which
add value to the decision making process.
Board Meetings:
The meetings of the Board of Directors are scheduled in advance for which notice is
given to each Director in writing. The Agenda and other relevant Notes are circulated to the
Directors well in advance.
During 2011-12, the following Board meetings were held on the dates as mentioned
below:
Sl. No. Meeting No. Held on

1 78th Meeting 26.04.2011
2 79th Meeting 24.08.2011
3 80th Meeting 28.09.2011
4 81st Meeting 16.01.2012
Board Sub-Committees:
The Sub-Committees of the Board were constituted not only to give more focused
attention on important issues but also to expedite decisions on such issues. The Board
has delegated certain specific powers to some of the Sub-committees towards expediting
decisions.
1. Central Purchases Committee:
Central purchases Committee was formed to consider all cases of purchases whether
for Transmission Zone, Projects & Award of Station/Line Works or any other works and all
matters relating to purchases which are beyond the powers delegated to the Chief Engineers,
Electricity upto a financial implication of Rs. 20 Crores.

The composition of the Central Purchases Committee is as follows:
Sl. No. Members Designation

1 Managing Director, KPTCL Chairman
2 Director (Finance) , KPTCL Member
3 Director (Transmission), KPTCL Member
Company Secretary, KPTCL Convener
The concerned Zonal Chief Engineer will be the Coordinating Officer.
During the year under report, CPC meetings were held as follows:
Sl.No. Meeting No. Held on

th
a) 115 Tendering & Procurement
b) 96th Transmission Zone, Bangalore
1 11-05-2011.
c) 56th Transmission Zone, Bagalkote
d) 39th Transmission Zone, Gulbarga
a) 116th Tendering & Procurement
2. c) 57th Transmission Zone, Bagalkote 31-05-2011.
e) 30th Transmission Zone, Tumkur
c) 58th Transmission Zone, Bagalkote 30-07-2011 & adjourned
st
3. d) 41 Transmission Zone, Gulbarga to 04-08-2011, 05-08-
e) 31st Transmission Zone, Tumkur 2011 & 18-08-2011.
f) 62nd Transmission Zone, Mysore

g) 30th Transmission Zone, Hassan
a) 118th Tendering & Procurement 20.09.2011.
4.
b) 31st Transmission Zone, Hassan
c) 59th Transmission Zone, Bagalkote
5. d) 42nd Transmission Zone, Gulbarga 09.11.2011.
e) 32nd Transmission Zone, Tumkur
f) 63rd Transmission Zone, Mysore
g) 32nd Transmission Zone, Hassan

Sl.No. Meeting No. Held on
th
a) 120 Tendering & Procurement
b) 60th Transmission Zone, Bagalkote
c) 43rd Transmission Zone, Gulbarga
6. 14.12.2011.
d) 33rd Transmission Zone, Tumkur
e) 64th Transmission Zone, Mysore
f) 33rd Transmission Zone, Hassan
a) 121st Tendering & Procurement
b) 100th Transmission Zone, Bangalore 27.12.2011 & adjourned
7. c) 44th Transmission Zone, Gulbarga to 28.12.2011&
d) 34th Transmission Zone, Tumkur 30.12.2011
e) 65th Transmission Zone, Mysore
a) 35th Transmission Zone, Tumkur

8. 04.02.2012.
b) 66th Transmission Zone, Mysore
a) 122nd Tendering & Procurement
b) 101st Transmission Zone, Bangalore
21.02.2012 & adjourned
c) 61st Transmission Zone, Bagalkote
9. to 5.03.2012, 21.03.2012
& 30.03.2012
e) 36th Transmission Zone, Tumkur
f) 34th Transmission Zone, Hassan
2. Borrowings Sub Committee:
The Borrowings Sub-Committee has been delegated powers to borrow Long Term
Loans from Banks/Financial Institutions on behalf of the Board from time to time upto the limit
of Long Term Borrowings authorized by the shareholders at the General Meeting from time to
time.
The sub-committee consists of the following members:
1. Principal Secretary to Govt., Energy Department, GoK,
2. Principal Secretary to GoK, Finance Department
3. Managing Director, KPTCL
4. Director (Finance), KPTCL

During the year under report, the Borrowing Sub-Committee held its meeting as below:
Sl.No. For Availing Finance from Amount Rs. in Crores Held on

1 M/s Punjab & Sind Bank 200.00 03.02.2012
3. Audit Committee:
In accordance with the new section 292(A) of Companies Act, 1956, KPTCL has
constituted an Audit Committee in the interest of good corporate governance.
The composition of the Audit Committee is as follows:
Sl. No. Members Designation
1 Principal Secretary, GoK, Energy Dept. Chairman/ Chairperson

2 Principal Secretary, GoK, Finance Dept. Member
3 Sri P. Manivannan Member
4 Director (Transmission), KPTCL. Member
Company Secretary, KPTCL Convener
During the year under report, the Audit Committee held its meeting as below:
Sl. No. Meeting No. Held on

th
1 15 Meeting 30.03.2012
The following Terms of Reference are prescribed to Audit Committee to play an effective
role as mentioned in the Companies Act:
1. Discussions with the Auditors periodically about Internal Control System and the scope
of audit including observations of the auditors.
2. Review of the half-yearly and Annual Financial statements before submission to the
Board.
3. Ensure compliance of Internal Control Systems.
4. Financial and Risk Management Policies and Fraud and Fraudulent Risks
5. Any other matters as may be referred to by the Board.
Audit Committee considers and recommends the financial results to the Board.
Statutory Auditors are invited to attend the meeting. The committee also invites the Director
(Finance), Financial Adviser (Accounts & Resources) and Financial Adviser (Internal Audit) to
be present at the meeting.

SPORTS:
KPTCL Sports Organisation has conducted Inter Company Sports activities for the
year 2011-12 by conducting the events at 3 (Three) Centers namely at Gulbarga, Surathkal
(Mangalore) and Haveri.
Our Teams participated in the AIESCB Tournaments in the following events:
Bodybuilding, Powerlifting, Athletics, Kabaddi, Basketball, Hockey, Cricket, Football,

Volleyball, Carrom, and Women Sports.
KPTCL SPORTS ORGANISATION has secured 2nd Place in over all championship
for the first time in the All India Electricity Sports Control Board Tournaments and has made
our organization proud.
KPTCL Athletes have secured 5 Gold, 5 Silver and 5 Bronze medals and have
secured 2nd place in the over all championship in the AIESCB athletics meet held at Mumbai
during the month of May 2011.
BODYBUILDING: INTERNATIONAL LEVEL
Sri Roshan Ferrao, MESCOM represented India in the
Mr. Universe Bodybuilding Championships-2011 held at Hamburg
(Germany) during the month of Nov. 2011 and secured 7th place.
NATIONAL LEVEL:
Sri Roshan Ferrao, MESCOM secured 1st Place (8TH TIME IN
SUCCESSION) in the AIESCB Bodybuilding Championships held at
Jabalpur and got VIDHYUTH SHREE Title.
Sri R. Nagaraj, KPTCL secured Ist Place in Super tall Category in the
AIESCB Bodybuilding Championships held at Jabalpur.
STATE LEVEL:
Sri Ananth Kumar, BESCOM has secured 1st Place in the State
Level Body Building Championship held at Bangalore.
Sri R. Nagraj, KPTCL secured 2nd Place in the 59th Karnataka State
Amateur Body Building Championship held at Bangalore during the
month of Feb 2012.
POWERLIFTING: Sri Kishore, MESCOM has secured 3rd Place in National Dead
Lift Power Lifting Championship held at Kangra (Himachal Pradesh)
during the month of April 2011.

KABADDI : KPTCL Kabaddi Team secured 1st Place for the fourth time in
succession in the 37th All India Electricity Sports Control Board
Championship held at Darmashala (Himachal Pradesh) during the
month of Sept. 2011.
KPTCL Kabaddi Team has secured 1st Place in the All India Invitational
Kabaddi Championship held at Mangalore during the month of May
2011.
ATHLETICS : KPTCL Athletes have secured 5 Gold, 5 Silver and 5 Bronze medals
and have secured 2nd place in the over all championship in the AIESCB
athletics meet held at Mumbai during the month of May 2011.
VOLLEY BALL KPTCL Team has secured Fourth Place for the first time in All India
Electricity Sports Control Board Volleyball Championships held at
Kurukshetra during the month of April 2011.
HOCKEY : KPTCL Team has reached Quarter Final in All India Electricity Sports
Control Board Hockey Championship held at Patiala during the month
of April 2011.
CRICKET : KPTCL Cricket team participated and performed very well and have
Qualified to play the Group II I-Division League tournaments of
Karnataka State Cricket Association held at Bangalore during the
month of June 2011.
KPTCL Cricket team have secured 1st Place in the KPC Foundation
Day Cricket Tournament organized by KPCL at Bangalore.
BALL Sri D.Mallesh, CESC has participated in the Ball Badminton National
BADMINTON Championship held at Chennai by representing Karnataka State Ball
Badminton Association during the month of April 2011.
BASKETBALL : KPTCL Team has participated in All India Electricity Sports Control
Board Basket Ball Championship held at Patiala during the month of
April 2011.
BILLIARDS & National Level :
SNOOKER : Sri D Rajkumar, KPTCL has represented Karnataka State in
Billiards and Snooker National championship held at Chennai
during the month of June 2011 and at Pune during the month
of Jan 2012.
State Level :
Sri D Rajkumar, KPTCL has been ranked State No 1 in 9 Ball Pool
State Ranking Tournament held at Bangalore.
CARROM KPTCL Team has participated in the 37th All India Electricity Sports
Control Board Carrom Championship held at New Delhi during the
month of Aug. 2011.

FOOTBALL KPTCL Team has participated in the 37th All India Electricity Sports
Control Board Football Championship held at Chandigarh during the
month of Dec 2011.
WOMEN KPTCL Women Team has secured 1st Place in Shuttle
SPORTS Badminton Team Championship, Ist Place in Table Tennis team
Championship, 2nd Place in Tenni-Koit Team Championship, 2nd
Place in Chess Team Championships and 2nd Place in Over All
Team Championship in All India Electricity Sports Control Board
Women Sports Tournament held at Nellur (A.P.) during the month of
Dec. 2011.
YOGA : Yoga coaching classes was organized at Kaveri Bhavan. Many
employees and officers attended and have benefited out of it.
KPTCL Sports Organization is motivating young sports persons to participate in
various sports activities through which the quality and competition in sports has improved.
The Management of KPTCL and all zonal sports committees are encouraging promotion of
Sports in the organization coming under their respective Zone. All the sports persons are
taking lot of interest in participating in the International, National and State level tournaments
and many have brought laurels to our organisation.
CHALLENGES FACED BY THE UTILITY:
Drawing of Power from the distant Generating Stations and maintenance of
Transmission system to achieve reliability factor of 99.85%
Grid management at High Voltage & High frequency with increase in Wind
& Hydro Power and drastic reduction in Demand to an extent of 40% during
Monsoon period
Load management during Summer due to infirm Wind Power & sudden outages
of Thermal Units
RoW Right of way problems while execution of Transmission lines, stiff
resistance from farmers/ land owners, resolving disputes pending at various
courts.
Delay in getting Statutory clearances from Forest, Railway departments, delay
in acquisition of Private/Government land due to cumbersome procedure.
Time and cost over run of projects due to delay in completion of projects caused
by RoW and other problems as stated above.
Stations could not be commissioned for non completing of incoming lines due
to RoW and other problems
220kV Jigani Sub-Station- RoW for line works
220kv Kotipura Sub-Station- RoW for line works
220kV VT Park Sub-Station- RoW for line work
110kV Kammaradi Sub-Station Forest clearance for lines
110kV Konandur Sub-Station- Forest clearance for lines

Link lines could not be commissioned due to RoW and other problems
400kV DC line between UPCL-Shantigrama- Forest clearance & RoW
220kV DC line between Malur- Somanahalli- Forest clearance & RoW
220kv DC line between Hiriyur- Gowribidnur- RoW problems
220kV DC line between Tallak-Hiriyur- RoW problems
220kV DC line between Bidadi- 400kV Bidadi Station- RoW
110kV DC line Shimoga- Sagar RoW problems
STATUTORY AUDITORS
C & AG of India have appointed M/s. Rao & Swamy, Bangalore as Statutory Auditors
for auditing the Accounts of KPTCL for the Financial Year 2011-2012.
COST AUDITORS
Ministry of Corporate Affairs, Govt. of India have approved appointment of M/s KPR
& Associates as Cost Auditors for auditing the cost accounts of KPTCL for the Financial Year
2011-2012.
PARTICULARS OF EMPLOYEES UNDER SECTION 217(2A)
The information under section 217(2A) of Companies Act, 1956 read with Company
(Particulars of Employees) Rules, 197 may be taken as NIL.
DIRECTORS RESPONSIBILITY STATEMENT
Pursuant to the requirement under section 217(2A) of the Companies Act, 1956 with
respect of Directors Responsibility Statement, it is hereby confirmed that:
1. In the preparation of the annual accounts, the applicable accounting standards

have been followed along with proper explanation relating to material
departures;
2. Accounting policies have been selected and applied consistently and judgments
and estimates are made that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the company at the end of the financial year
and of the profit or loss of the company for that period;
3. Proper and sufficient care has been taken for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding
the assets of the company and for preventing and detecting frauds and other
irregularities; and
4. Annual accounts have been prepared on a going concern basis.

ACKNOWLEDGEMENTS
The Board of Directors would like to place on record its appreciation for all the support
and guidance extended by the Government of Karnataka, Government of India, Karnataka
Electricity Regulatory Commission, Central Electricity Authority, Central Electricity Regulatory
Commission, Power Finance Corporation Ltd., Rural Electrification Corporation, Karnataka
Renewable Energy Development Ltd., Commercial Banks & other Financial Institutions,
Ministry of Corporate Affairs, Registrar of Companies and the General Public for their Co-
operation and active support to KPTCL.
The Board of Directors would also like to place on record its appreciation for the untiring
efforts and contributions made by the employees at all levels to ensure that the company
continues to grow and excel.
For & on behalf of the Board
Sd/-
CHAIRPERSON

COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL
OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT, 1956
ON THE ACCOUNTS OF KARNATAKA POWER TRANSMISSION
CORPORATION LIMITED, BANGALORE, FOR THE YEAR ENDED
31st MARCH 2012.
The preparation of financial statement of Karnataka Power Transmission Corporation

Limited, Bangalore, for the year ended 31st March 2012 in accordance with the financial
reporting framework prescribed under Companies Act, 1956 is the responsibility of the
management of the Company. The statutory auditors appointed by the Comptroller and
Auditor General of India under Section 619(2) of the Companies Act, 1956 are responsible
for expressing opinion on these financial statements 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 by them vide their Audit Report dated 17th September 2012.
I, on 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
Karnataka Power Transmission Corporation Limited, Bangalore for the year ended
31st March 2012. This supplementary audit has been carried out independently without
access to the working papers of the statutory auditors and is limited primarily to inquiries of
the statutory auditors and company personnel and a selective examination of some of the
accounting records. On the basis of my audit nothing significant has come to my knowledge
which would give rise to any comment upon or supplement to Statutory Auditors report under
section 619(4) of the Companies Act, 1956.
For and on behalf of the

Comptroller & Auditor General of India
Sd/-
(D.J. BHADRA)
PR. ACCOUNTANT GENERAL
(ECONOMIC & REVENUE SECTOR AUDIT)
KARNATAKA, BANGALORE
BANGALORE
Dated: 28 September 2012

Rao & Swami No. 2/1, Connaught Road
Chartered Accountants Bangalore 560 001
Fax : 91(080) - 22260230
AUDITORS REPORT
TO THE MEMBERS OF KARNATAKA POWER TRANSMISSION

CORPORATION LIMITED
We have audited the attached Balance Sheet of Karnataka Power Transmission

Corporation Limited (the Corporation), as at 31st March 2012, the Statement of Profit and
Loss and also the Cash Flow Statement for the year ended on that date, annexed thereto.
These financial statements are the responsibility of the Corporations Management. Our
responsibility is to express an opinion on these financial statements based on our audit.
The Corporation is governed by the provisions of The Electricity Act, 2003 read
with the related rules and regulations. The application of the said Act is in consonance with
the provisions of Section 616(c) of The Companies Act, 1956 (the Act). Accordingly, the
Corporation has compiled the accounts, adopting the principles and policies as enunciated in
the Electricity Supply Annual Accounts Rules, 1985 (ESAAR).
1. We have conducted our audit in accordance with 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 misstatement. 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 the Management, as well as evaluating the overall financial statements
presentation. We believe that our audit provides a reasonable basis for our
opinion.
2. Our Notes on Accounts are detailed in Annexure-1
3. As required by the Companies (Auditors Report) Order, 2003 issued by the
Central Government of India in terms of section 227(4A) of the Companies
Act, 1956, we enclose in Annexure-II a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
4. Further to our comments in Annexure-II referred to in paragraph 3 and subject to

our comments in Annexure-I referred to in paragraph 2 above, we report that:
(i) We have obtained all the information and explanations, which to the best of
our knowledge and belief were necessary for the purpose of our audit;

(ii) In our opinion, proper books of account as required by law have been
kept by the Corporation so far as appears from our examination of those
books;
(iii) The Balance Sheet the Statement of Profit & Loss and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account;
(iv) In our opinion, the Balance Sheet, the Statement of Profit & Loss 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, to the extent they are not inconsistent with the provisions of
ESAAR,1985 adopted by the Corporation, except as stated in Note 1 in
Annexure-I to this report.
(v) Without qualifying our report we draw your attention to the following Notes
on Accounts:
(a) Note 6.3 regarding difference in transmission charges billed and

accounted in earlier year and approved by KERC in its order dated
31.12.07, which matter has been taken before Honble Supreme Court
by KERC.
(b) Note 12.3 regarding Rs. 112.50 lakh demanded by lessor (including Rs.
59.60 lakh relating to assets held by ESCOMS) for transfer of title over
the assets earlier obtained on lease, not provided for in the accounts,
as negotiation to terminate the lease agreement and repossession of
assets are stated to be in progress.
(c) Note 13.1 that Capital Work in Progress includes a balance of

Rs. 2276. lakh under reconciliation, pending identification with correct
work order.
(d) Note 14.1 regarding amount of Rs. 454.06 lakh withheld by Incometax
department (out of refunds due) against disputed TDS claims stated in
Note 36.1 (i) on Accounts.
(e) Note 36.6 (a) that balance confirmations have been obtained only in
respect of borrowings from Banks and financial Institutions and for bank
balances.
(vi) In our opinion and to the best of our information and according to the
explanations given to us, subject to the effect on the financial statements of

the matters referred to in Annexure-I to this report, to the extent ascertainable,
as detailed in Note 5 therein (viz disclosed profit before tax of Rs. 870.59
lakh would have resulted in loss of Rs.19910.75 lakh), the said accounts
read together with accounting policies and notes forming part thereof, 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 Corporation
as at March 31st 2012.
(ii) in the case of the Statement of Profit and Loss, of the profit for the year
ended on that date;
(iii) in the case of the Cash Flow Statement, of the cash flows for the year
ended on that date;
5. The Corporation being a Government Company, the provision of Section 274(1)

(g) of the Companies Act ,1956 regarding disqualification of Directors do not
apply in terms of Notification No.GSR 829(E) dt.21.10.2003.
For RAO & SWAMI

CHARTERED ACCOUNTANTS
FRN : 003105S
Place: Bangalore
Sd/-
th
Date: 17 September 2012
(N. RAMESH)
PARTNER
Membership No. 016153

ANNEXURE-I TO THE AUDITORS REPORT
OUR NOTES ON ACCOUNTS
(Referred to in Paragraph 2 of our report of even date to the members of Karnataka Power
Transmission Corporation Limited. on the financial statements for the year ended 31st March,
2012)
1. Non compliance of the Balance Sheet, Statement of Profit & Loss and the Cash
Flow Statement dealt with by this report with the provisions of ESAAR, 1985
and / or Accounting Standards referred to in subsection 3C of Section 211 of the
Companies Act, 1956 (to the extent they are not inconsistent with the provisions
of ESAAR 1985), observed by us are listed hereunder.
1.1 a) Valuation of items of material stock of Rs. 82.60 lakh identified as obsolete
(referred to in Note 16.1on Accounts) and in respect of certain inventories not
held for consumption like scrap and nonmoving / surplus items, (including items
of Rs. 1864.52 lakh identified as nonmoving stores for more than 3 years as
on 31.3.2012) made at standard rate or cost instead of lower of cost or net
realizable value as per Accounting Standard (AS) 2 on Valuation of Inventories
and paragraphs 1.32 and 4.5 of ESAAR 1985, the effect of which is not
ascertainable in the absence of details.
b) Loss on shortage in material stock has not been provided for in the period in
which the shortage was observed, as required by para 2.20 (12) in Annexure-V
to ESAAR 1985, but taken under Stores and Spares (Note 18 on Accounts) as
Stock shortage pending investigation. Hence Stores and Spares and profit for
the year is over stated by Rs.0.87 lakhs.
1.2 Nondisclosure of Pension & Gratuity contribution relating to pay arrears which
had been provided as on 31.3.2011 without considering such contribution, is
not in conformity with Accounting Standard (AS) 5 on Net Profit for the Period,
Prior Period Items and Changes in Accounting Policies amount not quantified/
ascertained.
1.3 Charging depreciation on assets constructed on leasehold land at normal rate,

as stated in Accounting Policy Note 35.4 (g) on Accounts which is also not in
conformity with Accounting Standard (AS) 6 on Depreciation Accounting and
paragraph 2.42 of Annexure-III of ESAAR, 1985.The effect of the above is not
ascertainable in the absence of necessary details.
1.4 Recognition of incentive of Rs. 932 lakh (included in Miscellaneous Recoveries
shown in Note 21 on Accounts) relating to earlier financial year 2010-11

recoverable from ESCOMS as per Tariff Order 2012 notified by KERC on
30.4.2012, as income for the current financial year, which is not in conformity
with Accounting Standard (AS) 9 on Revenue Recognition or Accounting
Standard (AS) 4 Contingencies and Events Occurring After the Balance
Sheet Date. Accordingly Revenue from Operations and Other Current Assets
are overstated by Rs.932 lakhs.
1.5 (a)(i) Non recognition of companys contribution as expense (except to the
extent of death benefit) and also not providing for liability towards companys
contribution based on actuarial valuation in respect of Long term liability relating
to Family Benefit Fund. [The amount of Rs. 4294.10 disclosed under Note 6
on Accounts, represents amount collected from employees net of disbursement
made (including Companys contribution) on retirement/death as stated in Note
6.1 on Accounts]. This is not in conformity with Accounting Standard (AS) 15 on
Employee Benefits, the effect of which could not be ascertained.
(ii) The company has also not deposited the amount collected from employees
in separate bank account in terms of provisions of Sec 417 of Companies Act
1956.
(b)(i) Provision for long term employee benefit like leave encashment
and pension & gratuity being made on adhoc basis as stated in Note 24.2 and
Note 11.2 on Accounts respectively, without ascertaining (incremental) liability
based on actuarial valuation as on 31.3.12 using Projected Unit Credit Method,
which is not in conformity with Accounting Standard (AS) 15 on Employee
Benefits, the effect of which could not be ascertained except as stated in
(ii) hereunder.
(ii) As per the Actuarial Report as on 31.3.2011 obtained by the Company,

in respect of Pension Scheme and Gratuity Scheme unprovided liability works
out to Rs. 19,265.81 lakh as under.
Rs. Lakhs
- Liability to be recognized
as per Report Pension 22,470.88

- Gratuity 3,822.51
26,239.39
Less: Liability recognized
In Balance Sheet as on 31.3.2011 7,027.58
19,265.81

Accordingly, as on 31.3.2011 the provision towards pension and gratuity liability
was understated and the Surplus was overstated by Rs. 19,265.61 lakh. This
shortfall ought to have been provided pending receipt of the actuarial valuation
report as on 31-03-2012.
(iii) Consequential effect of non-reconciliation of balance due to/from

Pension Trust and Gratuity Trust as stated in Note 10.4 and Note 11.3 on
Accounts is also not ascertainable.
(c) Additional disclosure required to be made in terms of the said Accounting

Standard AS-15 has also not been made.
1.6 Non ascertainment and non provision for anticipated loss arising from the
obsolescence of capital assets in service and of capital spares as also stores
in stock and assets under construction in terms of para 1.32 and para 4.5
in Annexure-V to ESAAR 1985. Non ascertainment and non provision for
impairment loss in the manner required in terms of Accounting Standard -28
and Accounting Policy No 35.13.
2. Attention is drawn to following Notes on Accounts consequential effect of which

could not be ascertained.
2.1 Note 5.1 regarding Deferred Tax Liability provided in earlier years considered as
sufficient, the correctness of which could not be ascertained in the absence of
necessary details of working of the position as on 31-03-2012..
2.2 Note 10.2 regarding there being no dues to MSMEs under MSME Development
Act, 2006 as per information available with the Company and accordingly
no disclosure as required under the said Act has been made. However your
attention is drawn to para 2.4 (ii) herein below in respect of interest awarded to
three MSMEs by the Rajasthan Industry Facilitation Council under dispute.
2.3 Note 15.3 regarding un reconciled net credit balances of Rs.2551.12 lakh (Debit
Rs.101,82,659 lakh and credit Rs.101,85,210 lakh) under Inter Unit Accounts,
which include several old transactions. The net credit balance of Rs.2551.12
lakh has been grouped under Other Noncurrent Assets.
2.4 Note 36.1 regarding Contingent liabilities and Commitments to the extent not
provided for- Claims against the company not acknowledged as debt others
Rs.1838 lakh, which includes.
i. Rs.853 lakh relating to amount awarded by West Bengal Industries Facilitation

Council, Kolkata on 31.01.2002, representing Rs.172 lakh on account of

outstanding amount for goods supplied by small scale industries (through
NSIC) and Rs.681 lakh interest on delayed payment under Small Scale and
Auxiliary Industrial Undertaking Act, 1993. The Corporations writ petition
has been dismissed by the Honourable High Court of Karnataka during the
year and we are informed that matter has since been taken up before the
Honble Supreme Court. Pending decision of Honble Supreme Court and
as the relevant records are not readily available, liability if any could not be
ascertained.
ii. Rs.121.88 lakh pertaining to award of interest to three suppliers under

the MSME Development Act, 2006 by the Rajasthan Industry Facilitation
Council in respect of which the Corporation has filed an arbitration suit at
Bangalore and matter is pending.
2.5 Note 36.6 (b) regarding receivables from and Payable to ESCOMs referred
(aggregating to Rs. 6579.34 lakh and Rs.6956.07 lakh respectively) being
subject to reconciliation and confirmation. The balances now being reflected in
the accounts are after adjusting certain receivables against payables which are
pending confirmation (including Rs. 6,651.79 lakh relating to differential cost of
power debited to ESCOMs as on 31.3.2011 commented upon by us in Para 1.4
(ii) in Annexure to our Auditors Report dated 5.9.2011.
Attention is also drawn to para 3.2(b) and para 3.7 (b) herein below also
1.6 Note 36.8 regarding non provision of unpaid property tax and land cess (amount
not ascertainable)
3. Our other observations / comments on the accounts are as under
3.1 Equity infusion of Rs. 88500 lakh made during 2008-09 to 2010-11 by
Government of Karnataka (shown as Equity Infusion-Shares pending allotment
in Notes on Accounts) and the utilization thereof is subject to certain terms viz.
the Corporation is required amongst others to prepare the design and monitoring
framework for each project with investments above Rs.5 crore (of respective
financial years during which funds were released) as per Government guidelines
dated 01.08.2008. Further in respect of funds of Rs.200 crores released on
31.03.2011 the Corporation to take Cabinet approval for the works to be taken
up by leveraging the equity infusion as per monitoring / measurable parameters
and as per pre determined time schedule. Though shares for Rs. 43,294 lakh
have been issued during the year, the Corporation is yet to comply with terms

of capital infusion and the funds already utilized (amount not ascertainable) is
subject to ratification by Government of Karnataka).
3.2 We are unable to ascertain either the correctness of liability or the additional
liability the Corporation may have to bear in respect of following amounts:
(a) Liability for expenses Rs. 713.39 lakh shown in Note 06 on accounts which
pertains to share of revenue expenditure payable to TBHES and outstanding for
over three years.
(b) Sundry liabilities Rs. 3669.55 lakh shown in Note 06 on Accounts, stated to
be amount released in earlier years by Energy Dept payable to ESCOMs (which
is also not included in amount disclosed in Note 36.6 (b) on Accounts).
(c) Sundry Creditors for purchase of power Rs. 168806 lakh (shown in Note 09
on Accounts) stated to be balance amount payable relating to purchase made up
to 09.06.2005 (substantial portion of it outstanding for over three years) together
with interest of Rs.10,821 lakh per annum provided only in respect of principal
amount due to KPCL.
3.3 (a) Adjustment pending renotification by GOK Rs.4328.77 lakh shown in

Note 06 on Accounts represents adjustments made after final notification dt.
07.10.2004 (of Opening Balance Sheet of the Corporation as at 01.06.2002)
pertaining to period prior to 01.06.2002 and having effect on the networth of
the Corporation as at .01.06.2002. The Corporation has on 16.03.2012 sought
approval of Energy Department for transfer of Rs.4323.95 lakh as at 31.03.2011
to Share Capital Account, in terms of authorization accorded vide GO dated
07.10.2004. The Corporation is yet to seek such approval for Rs.4.82 lakh (net)
credited to the account during the year.
(b) Further, the amount now disclosed in the accounts is also subject to
i) effect of auditors qualification on the accounts for 2009-10 and earlier

years as also qualification Para 3.6 in Annexure 1 to our Auditors Report on
accounts for 2010-11.
ii) effect of reconciliation of balances with ESCOMs as stated in Para 2.5 herein
above.
3.4 Others Payable - Sundry liabilities Rs. 12815.69 lakh shown in Note 10 on
Accounts include
a) Rs. 11524.78 lakh being reversal of cheque issued but not presented relating
to bank accounts with adverse credit balance as per books.

b) Rs. 118.19 lakh being amount recovered from employees in earlier years,
pending payment to Employees Welfare Trust, which as informed to us, is yet
to be formed. Nondepositing of the accounts also contravenes Section 417 of
Companies Act 1956.
3.5 Fixed assets (Note 12 on Accounts) and Capital work in Progress (Note 13
on Accounts) includes value of materials relating to works pending dismantling
and/or short closed, which are yet to be removed and /or transferred to stores.
In the absence of necessary details of amounts relating to such works,

consequential effect could not be ascertained.
3.6 Advance Recoverable from Employees Rs. 329.37 lakh shown in Note 15 on
Accounts and Rs. 118.77 lakh shown in Note 20 on Accounts includes Rs. 248.32
lakh relating to shortage etc proposed to be recovered from future salaries/
terminal benefits. In the absence of necessary details, amount required to be
provided towards irrecoverable balance could not be ascertained.
3.7 Trade Receivables Rs. 202,99.05 lakh (Note 17 on Accounts)
(a) Includes:
(i) Sundry Debtors for Sale of Power- Interstate: Rs. 26.38 lakh, claim in respect
of which has since been revised downward to Rs. 5.83 lakh.
(ii) Wheeling charges receivable (net of payable) Rs. 1011.68 lakh of which Rs.
562.11 is outstanding for over three years and not realised till date.
The above dues are in our opinion doubtful of recovery and had the provision
been made profit for the year would have been lower by Rs. 582.66 lakh.
(b) Sundry debtors transmission charges of Rs. 19,260.99 lakh due from
ESCOMs are subject to reconciliation consequential effect of which is not
ascertainable.
3.8 (a) The Corporation has been providing for bonus to eligible employees
for the year only to the extent of minimum bonus, without ascertaining allocable
surplus and set on available., as per Payment of Bonus Act. Consequently
additional liability under the said Act could not be ascertained. Attention is also
drawn to Note 10.3 on Accounts- Ex-gratia paid is subject to post facto approval/
ratification of the Government of Karnataka.

(b) No provision in the account has been made for employees contribution
towards provident fund relating to the period August 1999 to March 2006
amounting to Rs. 97.23 lakh. The contribution Rs. 89.60 lakh recovered by PF
authorities has been included in Deposits with Others in Note 14 on Accounts.
We are informed that management is pursuing for recovery and some recovery
having been effected after the Balance Sheet date, the amount which will be
ultimately borne by the company cannot be ascertained at this stage.
3.9 Other Operating Income Miscellaneous Recoveries Rs. 13,592.24 lakh shown
in Note 21 include penalty / liquidated damages relating to Capital Works
(amount not readily ascertainable). In light of the Corporation capitalizing extra
cost (including interest) on account of re-tendering , such penalty/ liquidated
damages, in our opinion, are not in the nature of income referred to in ESAAR,
1985 (para2.15 of Annexure III) but are in the nature of receipts in mitigation of
extra cost incurred on account of delay and hence to be adjusted against cost
of corresponding asset, as per the opinion of the Expert Advisory Committee of
ICAI and para 2.16 of Annexure-III of ESAAR,1985. In the absence of necessary
details, consequential effect on the accounts could not be ascertained.
3.10 Expenses shared by ESCOMS deducted from Repairs and Maintenance (Note
25) Rs. 217.35 lakh, Employee Cost (Note 24) Rs. 1177.89 lakh and Administration
and General expenses (Note 26) Rs. 373.15 lakh includes Rs. 1518.79 lakh
claimed from ESCOMs as SLDC charges which is subject to deduction from
Annual Revenue Requirement (ARR) in the filing with and approval of KERC.
3.11 Finance Cost (Note 27) is net of interest of Rs. 199.05 Lakh recovered from a
contractor in respect of advance referred to in para 4 (a) below.
3.12 Contingent Liabilities and Commitments not provided for (Note 36.1 on Accounts)
does not include claims made in terms of CERC orders and which are required
to be collected from ESCOMs and remitted by the Corporation as per the
Regulation but outstanding as on 31.3.2012 amount not ascertained.
3.13 Attention is drawn to Note 36.11 c that previous years figures are not strictly
comparable.

4. In our opinion the following actions require the approval of the Board:
(a) Advance of Rs. 3717.05 lakh made to a contractor included under Advance
to Suppliers and Contractors Rs. 5636.39 lakh shown in Note 14 on
Accounts (paid out of term loan taken by the Corporation) and proposed to
be recovered from retention amount,.
(b) Extension of time limit for completion of project permitted during the year
resulting in refund of Rs.7915..9 lakh penalty/liquidated damages;
(c) Refunds/Withdrawal of Miscellaneous income Rs. 7724.09 lakh shown as

deduction in Note 21 includes Rs. 6961.14 lakh being reduction in power
charges earlier treated as income receivable form ESCOMS and reversed
during the year,
(d) Withdrawal of Rs. 262.95 lakh claim for delayed payment charges made in
earlier year from Hukkeri Electricity Coop Society, written off and included
in Miscellaneous losses and Write off Rs.868.08 lakh shown in Note 29 on
Accounts
5. The consequential effect of the above comments to the extent ascertainable is

as under
(Rs. in lakhs)
Profit before tax for the year overstated by 20781.34
Inventories overstated by . 87
Trade Receivables overstated by 582.66
Other Current Assets overstated by 932.00
Long Term Provision under stated by 19265.81
For Rao & Swami

Chartered Accountants
FRN : 003105 S
N. Ramesh
Partner
Place: Bangalore M No.16153
Date: 17th September 2012

ANNEXURE-II TO THE AUDITORS REPORT
(Referred to in Paragraph 3 of our report of even date to the members of Karnataka Power
Transmission Corporation Limited. on the financial statements for the year ended 31st March,
2012)
1. (a) The Corporation has been maintaining records showing particulars including
quantitative details of fixed assets, except for land, assets transferred from
division to division. Details of the situation of Fixed assets has not been
mentioned in all the cases.
(b) According to information and explanation given to us,
(i) the assets/installations put to use in electricity supply and transmission

functions are considered as physically available so long as the functions
are continued to be discharged and are not subject to periodical physical
verification, as assets like lines run through forest area and are spread
over the State.
(ii) the Corporation has a system of physical verification of tools and

furniture (T&P counting) every year.
However, the procedure of physical verification where conducted and

details of discrepancies found on such verification have not been
documented.
Also, asset records at divisions relating to land requires to be reconciled

with documents held at Corporate Office.
Further, in our opinion, the Corporation should evolve suitable system

of periodic physical verification covering all types of fixed assets, capital
work in progress (including material procured under turn key contracts),
assets not in use and deferred cost.
(c) Company has not disposed off substantial part of fixed assets during the year
so as to affect its going concern status.
2. (a) According to the information and explanation given to us, the Corporation has
a system of physical verification of inventories every year and at the time of
handing over of charge. Materials in transit have been taken as per records.
In our opinion, the frequency of verification is reasonable considering the size
of the company and nature of its business.
(b) In our opinion, the procedure of physical verification of inventory needs to

be properly documented, in the absence of which we are unable to express

our opinion on its reasonableness and adequacy in relation to the size of the
Corporation and its nature of business.
(c) According to the information and explanations furnished to us, the Corporation
has a system of maintaining proper records of inventory and discrepancies
found or noticed on physical verification have been properly dealt in the
accounts except excess of Rs. 11.07 lakh and shortage of Rs.0.87 lakh which
are under investigation as on 31st March 2012. However, in our opinion,
discrepancy found on physical verification and adjustment thereof needs to
be properly documented and also maintenance of stores ledger / records
needs to be strengthened.
(d) According to the information and explanations given to us, the Corporation has
during the year not granted any loans, secured or unsecured to companies,
firms and other parties covered in the register maintained under section 301
of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(a),
(b) (c) and (d) of the Order are not applicable.
(e) According to the information and explanations given to us, the Corporation has
during the year not taken any loans, secured or unsecured from companies,
firms and other parties covered in the register maintained under section 301
of the Companies Act, 1956. Accordingly, the provisions of clause 4 (iii)(e), (f)
and (g) of the Order, are not applicable.
4. According to the information and explanations furnished to us, there are
prima facie adequate internal control procedures commensurate with the
size of the Corporation and nature of its business, for purchase of inventory
and fixed assets and for service / transmission of power except in respect
of Accounts Transfer (Interunit Accounts),accounting for takeover of assets
on short closure, asset categorization, accounting for completed works and
review of balances for adjustment / recovery, which in our opinion needs to
be strengthened.
Further, in our opinion, suitable financial limits should be fixed for withdrawal
of revenue and/or for write off.
5. According to information and explanation given to us, there are no transactions
made in pursuance of contracts or arrangements that need to be entered in
the register maintained under section 301 of the Companies Act, 1956.
6. The Corporation has not accepted any deposits from the public. Therefore
provisions of clause 4 (vi) of the Order are not applicable.

7. The Corporation has an internal audit division. In our opinion the system
requires to be strengthened with regard to manpower (including professionally
qualified personnel), scope and extent of coverage of transactions (including
compliance of Accounting Standards, categorization of assets, review of old
balances and presence during physical verification) and reporting and follow
up, in order to be commensurate with the size of the Corporation and nature
of its business.
8. The maintenance of cost records in respect of electricity / transmission of

power has been prescribed by the Government under clause (d) of subsection
(1) of Section 209 of the Companies Act, 1956. However we are informed that
the Corporation does not keep separate set of registers and books for cost
records and cost statements are prepared based on the financial accounting
books and records.
9. (a) Based on our examination of books of account and according to the information
and explanations given to us, in our opinion, during the year the Corporation
is regular in depositing undisputed statutory dues with the appropriate
authorities and there were no arrears of such dues at the year end which have
remained outstanding for a period of more than six months from the date they
became payable except provident fund contribution relating to earlier year of
Rs. 7.63 lakh referred to in para 3.8 8(b) in Annexure I. However as informed
to us, property tax is paid and accounted as and when demand is raised
from the Revenue authorities and there are no dues required to be provided/
paid for. Also, provisions of service tax are not applicable to the Corporation.
Further applicability of wealth tax on motor cars and urban land has not been
ascertained and paid.
(b) According to the information and explanations furnished, there are no due of
income tax, sales tax, wealth tax, service tax, customs duty and excise duty
which have not been deposited on account of any dispute.
10. The Corporation has no accumulated losses as at March 31, 2012 and subject
to effect of qualification in the audit reports, has not incurred cash loss in the
financial year ended on that date or in the immediately preceding previous
year.
11. Based on our examination of books of account and according to the information
and explanations given to us, the Corporation has not defaulted in repayment
of dues to a financial institution or Bank or Debenture holders.

12. According to the information and explanation given to us, the Corporation has
not granted any loans & advances on the basis of security by way of pledge
of shares, debentures and other securities. As such, provisions of clause
4(xii) of the Order are not applicable.
13. The Corporation is not a Chit fund Corporation, Nidhi Corporation or mutual
benefit Society. Therefore the provisions of paragraph 4(xiii) of the Order are
not applicable to the Corporation.
14. The Corporation is not dealing or trading in shares, securities, debentures and
other investment and as such clause 4(xiv) of the Order is not applicable.
15. According to the information and explanation given to us the Corporation

has not given guarantees for loan taken by others from banks or financial
institutions. However, attention is drawn to Note - on Accounts regarding
loans parked with GOK!
16. According to the information and explanations given to us, though the loan
funds and utilization thereof cannot be matched one to one as the funds
are pooled, on an overall basis, the term loans have been applied or in the
process of being applied for the purposes for which they were obtained.
17. According to the Cash flow statement and other records examined by us and
according to the information and explanation given to us, on an overall basis,
funds raised on short term basis have prima facie, not been used during
the year for long term investment other than temporary deployment pending
receipt of long term loans.
18. The Corporation has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of the
Act.
19. The Corporation has not issued any debentures; accordingly the provisions
of clause 4(xix) of the Order are not applicable.
20. The Corporation has not raised money by public issue, as such provisions of
clause 4(xx) of the Order are not applicable.
21. According to the information and explanation given to us and to the best of
our knowledge and belief, no fraud on or by the Corporation has been noticed
or reported during the year under audit. In respect of departmental enquiry

initiated against a few employees relating to alleged serious irregularities, we
are informed that the same are not in the nature of fraud and / or its nature
can be determined only on completion of enquiry.
For Rao & Swami

FRN : 003105 S
N. Ramesh
Partner
Place: Bangalore M No.16153
Date: 17th September 2012

ADDENDUM TO DIRECTORS REPORT FOR
THE YEAR ENDED 31ST MARCH 2012
FOLLOWING REMARKS ARE OFFERED ON THE OBSERVATION / COMMENTS OF THE

STATUTORY AUDITOR ON THE ACCOUNTS FOR 2011-12
Sl. No. Observation of Statutory Auditors Management Reply

1 Noncompliance of the Balance Sheet,
Statement of Profit & Loss and the Cash
Flow Statement dealt with by this report
with the provisions of ESAAR, 1985
and/ or Accounting Standards referred
to in subsection 3C of Section 211 of the
Companies Act, 1956 (to the extent they
are not inconsistent with the provisions of
ESAAR 1985), observed by us are listed
hereunder
1.1 a) Valuation of items of material stock of The materials which are identified as
Rs. 82.60 lakh identified as obsolete obsolete are removed from Material
(referred to in Note 16.1on Accounts) Stock Account and kept under a
and in respect of certain inventories separate Account Obsolete material
not held for consumption like scrap and stock till the disposal of obsolete
nonmoving / surplus items, (including materials through Auction. Loss or gain
items of Rs. 1864.52 lakh identified as as the case may be will be accounted
nonmoving stores for more than 3 years after the auction of such materials.
as on 31.3.2012) made at standard Hitherto, no provision for obsolescence
rate or cost instead of lower of cost or was being made for materials under
net realizable value as per Accounting Obsolete Material Stock, However,
Standard (AS) 2 on Valuation of necessary action will be taken to make
Inventories and paragraphs 1.32 and provision for obsolescence if any, in
4.5 of ESAAR 1985, the effect of which 2012-13 Accounts and onwards.
is not ascertainable in the absence of With regard to non-moving stores for
details. more than 3 years, majority of the
materials procured by KPTCL are
made of Copper or Aluminium, existing
market rates of which are much higher
when compared to the rates at the time
of procurement. As such, accounting
of non-moving stores for more than
3 years at Standard Rate is in order.

b) Loss on shortage in material stock has As per the procedure followed by
not been provided for in the period in KPTCL and as per the provisions of
which the shortage was observed, as Electricity Supply Annual Accounts
required by para 2.20 (12) in Annexure Rules, 1985 (ESSAR 1985), the stock
V to ESAAR 1985, but taken under shortages found on physical verification
Stores and Spares (Note 18 on are initially accounted under Stock
Accounts) as Stock shortage pending Shortage Pending Investigation
investigation. Hence Stores and Account. On the outcome of the
Spares and profit for the year is over departmental enquiry, the responsibility
stated by Rs.0.87 lakhs. is fixed on the concerned and action
taken to recover the amount. If the
responsibility cannot be fixed on any
one , the amount will be written off in
the books of Accounts. However, action
will be taken to make provision for
loss towards Stock shortage pending
investigation from 2012-13 Accounts
and onwards.
1.2 Nondisclosure of Pension & Gratuity The Pay arrears were disbursed to
contribution relating to pay arrears which the employees during 2011-12 which
had been provided as on 31.3.2011 without includes the arrears from April 2011 to
considering such contribution, is not in Sept 2011 and the same is accounted
conformity with Accounting Standard (AS) under Pay,DP,DA and other allowance
5 on Net Profit for the Period, Prior Period of current Year. Pension and Gratuity
Items and Changes in Accounting Policies Contribution is calculated and provided
amount not quantified/ascertained. on the Actual amount paid towards Pay,
DP and DA of current year including pay
arrears, at the percentage intimated
by KPTCL Employees Pension
and Gratuity Trust vide Order
No. KEPGT/P7/2011-12 Bangalore
Dated 23.01.2012. The current year
expenditure towards Pay, DP and
DA includes arrears of Pay. As such,
provision towards Pension & Gratuity
contribution for the previous year
could not be distinguished separately.
However , there is no impact on the
Profit & Loss Account for 2011-12 due
to such accounting.

1.3 Charging depreciation on assets KPTCL is holding Land Under Lease
constructed on leasehold land at normal which is subject to renewal. As the
rate, as stated in Accounting Policy Note lease agreement will be renewed at
35.4 (g) on Accounts which is also not the end of the lease period, charging
in conformity with Accounting Standard depreciation at normal rates is in order.
(AS) 6 on Depreciation Accounting However, Accounting Policy-Note
and paragraph 2.42 of Annexure-III of 35.4(g) will be suitably modified during
ESAAR, 1985.The effect of the above 2012-13.
is not ascertainable in the absence of
necessary details.
1.4 Recognition of incentive of Rs. 932 lakh KERC in its Tariff Order-2012 Dated
(included in Miscellaneous Recoveries 30.04.2012, directed KPTCL to
shown in Note 21 on Accounts) relating to recover Rs. 932 Lakhs from ESCOMs
earlier financial year 2010-11 recoverable as incentive towards better system
from ESCOMS as per Tariff Order 2012 availability pertaining to the Financial
notified by KEBC on 30.4.2012, as income Year 2010-11. As per paragraph 1.17
for the current financial year, which is not of Annexure-III to ESSAR 1985, the
in conformity with Accounting Standard said amount has been accounted as
(AS) 9 on Revenue Recognition incentive during 2011-12.
or Accounting Standard (AS) 4
Contingencies and Events Occurring After
the Balance Sheet Date. Accordingly
Revenue from Operations and Other
Current Assets are overstated by Rs.932
lakhs.

1.5 (a)(i) Non recognition of companys This scheme has been evolved under
contribution as expense (except to the Employee welfare programme at the
extent of death benefit) and also not request of Employee Union way back in
providing for liability towards companys 1978. The liability towards companys
contribution based on actuarial valuation contribution will be provided based on
in respect of Long term liability relating the actuarial valuation during 2012-13
to Family Benefit Fund. [The amount of and onwards.
Rs. 4294.10 disclosed under Note 6 on
Accounts, represents amount collected
from employees net of disbursement
made (including Companys contribution)
on retirement/death as stated in Note 6.1
on Accounts]. This is not in conformity
with Accounting Standard (AS) 15 on
Employee Benefits, the effect of which
(ii) The company has also not deposited Action will be taken to open a separate
the amount collected from employees Bank Account during 2012-13.
in separate bank account in terms of
provisions of Sec 417 of Companies
Act 1956.
(b)(i) Provision for long term employee It is the responsibility of P&G Trust to
benefit like leave encashment and get the Actuarial Valuation done based
pension & gratuity being made on adhoc on the information provided by KPTCL
basis as stated in Note 24.2 and Note / ESCOMs. During the year 2010-
11.2 on Accounts respectively, without 11, the P&G Trust has got done the
ascertaining (incremental) liability based Actuarial valuation and intimated the
on actuarial valuation as on 31.3.12 using average rates of Pension and Gratuity
Projected Unit Credit Method, which is not contribution payable by KPTCL &
in conformity with Accounting Standard ESCOMs with effect from 01/04/2011
(AS) 15 on Employee Benefits, the effect vide letter No. KEPT/P7/2011-12/790-
of which could not be ascertained except 791 DATED 13-01-2012. Accordingly,
as stated in (ii) hereunder. KPTCL has provided for Pension
& Gratuity Contribution in 2011-12
Accounts.

ii) As per the Actuarial Report as on KPTCL has provided towards Pension
31.3.2011 obtained by the Company, in & Gratuity Contribution in accordance
respect of Pension Scheme and Gratuity with the intimation from P&G Trust in
Scheme unprovided liability works out to the letter dated 13/01/2012 above said
Rs. 19,265.81 lakh as under letter. The average rates indicated in
the above letter have been arrived at,
by the Actuary considering unprovided
Rs.Lakhs
liability also. Audit has reckoned entire
Liability to be recognized as
unprovided liability as the liability
per Report of KPTCL ignoring the Government
portion of Liability which is not correct.
Pension 22,470.88
Gratuity 3,822.51
26,239.39
Less: Liability recognized
In Balance Sheet as on 31.3.2011

7,027.58 19,265.81
Accordingly, as on 31.3.2011 the

provision towards pension and gratuity
liability was understated and the Surplus
was overstated by Rs. 19,265.61 lakh.
This shortfall ought to have been provided
pending receipt of the actuarial valuation
report as on 31-03-2012.
(iii) Consequential effect of non- Reconciliation will be carried out
reconciliation of balance due to/from during 2012-13.
Pension Trust and Gratuity Trust as stated
in Note 10.4 and Note 11.3 on Accounts is
also not ascertainable.
(c) Additional disclosure required to be Actuarial valuation Report for 2011-12
made in terms of the said Accounting is yet to be received.
Standard AS-15 has also not been made.

1.6 Non ascertainment and non-provision The Corporation has not noticed any
for anticipated loss arising from the loss arising from the obsolescence
obsolescence of capital assets in service of Capital Assets in service, Capital
and of capital spares as also stores in stock Spares and Assets under construction.
and assets under construction in terms of As such, no provision has been made
para 1.32 and para 4.5 in Annexure-V to during 2011-12. Losses arising from
ESAAR 1985. Non ascertainment and the obsolescence noticed if any, during
non-provision for impairment loss in the 2012-13 will be provided accordingly.
manner required in terms of Accounting
Standard -28 and Accounting Policy No
35.13.
2 3. Attention is drawn to following Notes on
Accounts consequential effect of which
could not be ascertained
2.1 Note 5.1 regarding Deferred Tax Liability The Deferred Tax Liability has been
provided in earlier years considered worked out and it is found that, Deferred
as sufficient, the correctness of which Tax Liability provided in earlier years is
could not be ascertained in the absence considered as sufficient.
of necessary details of working of the
position as on 31-03-2012..
2.2 Note 10.2 regarding there being no dues As per the information furnished by
to MSMEs under MSME Development Act, the Units, there are no dues to MSME
2006 as per information available with the under MSME Development Act, 2006
Company and accordingly no disclosure during 2011-12/as at 31/03/2012.
as required under the said Act has been
made. However your attention is drawn
to para 2.4 (ii) herein below in respect of
interest awarded to three MSMEs by the
Rajasthan Industry Facilitation Council
under dispute.
2.3 Note 15.3 regarding un reconciled net Factual. Efforts will be made to
credit balances of Rs.2551.12 lakh reconcile the balance under IUA during
(Debit Rs.101,82,659 lakh and credit the year 2012-13.
Rs.101,852,10 lakh) under Inter Unit
Accounts, which include several old
transactions. The net credit balance of
Rs.2551.12 lakh has been grouped under
Other Noncurrent Assets.

2.4 Note 36.1 regarding Contingent liabilities Factual. The said case is before
and Commitments to the extent not Honble Supreme Court of India.
provided for- Claims against the company On the outcome of the case, proper
not acknowledged as debt others Accounting Treatment will be given in
Rs.1838 lakh, which includes KPTCLs books of Accounts.
i. Rs.853 lakh relating to amount awarded

by West Bengal Industries Facilitation
Council, Kolkata on 31.01.2002,
representing Rs.172 lakh on account of
outstanding amount for goods supplied
by small scale industries (through NSIC)
and Rs.681 lakh interest on delayed
payment under Small Scale and Auxiliary
Industrial Undertaking Act, 1993. The
Corporations writ petition has been
dismissed by the Honourable High Court
of Karnataka during the year and we are
informed that matter has since been taken
up before the Honble Supreme Court.
Pending decision of Honble Supreme
Court and as the relevant records are not
readily available, liability if any could not
be ascertained.
ii. Rs.121.88 lakh pertaining to award Factual. The said case is before
of interest to three suppliers under the Honble Supreme Court of India.
MSME Development Act, 2006 by the On the outcome of the case, proper
Rajasthan Industry Facilitation Council Accounting Treatment will be given in
in respect of which the Corporation has KPTCLs books of Accounts.
filed an arbitration suit at Bangalore and
matter is pending.

2.5 Note 36.6 (b) regarding receivables Factual.
from and Payable to ESCOMs referred
(aggregating to Rs. 6579.34 lakh and
Rs.6956.07 lakh respectively) being
subject to reconciliation and confirmation.
The balances now being reflected in
the accounts are after adjusting certain
receivables against payables which
are pending confirmation (including Rs.
6,651.79 lakh relating to differential cost
of power debited to ESCOMs as on
31.3.2011 commented upon by us in Para
1.4 (ii) in Annexure to our Auditors Report
dated 5.9.2011.
Attention is also drawn to para 3.2(b)

and para 3.7 (b) herein below also
2.6 Note 36.8 regarding non provision of Property Tax is being paid / necessary
unpaid property tax and land cess (amount provision in the Accounts has been
not ascertainable) made on receipt of demand Notices
or on estimates obtained from the
concerned Authorities.
3 Our other observations / comments on
the accounts are as under
3.1 Equity infusion of Rs. 88500 lakh Factual
made during 2008-09 to 2010-11 by
Government of Karnataka (shown as
Equity Infusion-Shares pending allotment
in Notes on Accounts) and the utilization
thereof is subject to certain terms viz. the
Corporation is required amongst others
to prepare the design and monitoring

framework for each project with
investments above Rs.5 crore (of
respective financial years during which
funds were released) as per Government
guidelines dated 01.08.2008. Further
in respect of funds of Rs.200 crores
released on 31.03.2011 the Corporation
to take Cabinet approval for the works
to be taken up by leveraging the equity
infusion as per monitoring / measurable
parameters and as per pre-determined
time schedule. Though shares for Rs.
43,294 lakh have been issued during the
year, the Corporation is yet to comply with
terms of capital infusion and the funds
already utilized (amount not ascertainable)
is subject to ratification by Government of
Karnataka).
3.2 We are unable to ascertain either the
correctness of liability or the additional
liability the Corporation may have to bear
in respect of following amounts
(a) Liability for expenses Rs. 713.39 lakh Liability for expenses - Rs.713.39
shown in Note 06 on accounts which lakh pertaining to share of revenue
pertains to share of revenue expenditure expenditure payable to TBHES will
payable to TBHES and outstanding for be reconciled as to know whether the
over three years amount is actually payable.
(b) Sundry liabilities Rs. 3669.55 lakh Factual.
shown in Note 06 on Accounts, stated to
be amount released in earlier years by
Energy Dept. payable to ESCOMs (which
is also not included in amount disclosed
in Note 36.6 (b) on Accounts).

(c) Sundry Creditors for purchase of Factual.
power Rs. 168806 lakh (shown in Note 09
on Accounts) stated to be balance amount
payable relating to purchase made up
to 09.06.2005 (substantial portion of it
outstanding for over three years) together
with interest of Rs.10,821 lakh per annum
provided only in respect of principal
amount due to KPCL.
3.3 Adjustment pending renotification by Letter will be addressed to GOK seeking
(a) GOK Rs.4328.77 lakh shown in Note approval for Adjustment to Networth
06 on Accounts represents adjustments for Rs. 4.82 Lakhs (net) credited to the
made after final notification dt. 07.10.2004 Account during 2011-12.
(of Opening Balance Sheet of the
Corporation as at 01.06.2002) pertaining
to period prior to 01.06.2002 and having
effect on the networth of the Corporation
as at .01.06.2002. The Corporation has
on 16.03.2012 sought approval of Energy
Department for transfer of Rs.4323.95 lakh
as at 31.03.2011 to Share Capital Account,
in terms of authorization accorded vide
GO dated 07.10.2004. The Corporation
is yet to seek such approval for Rs.4.82
lakh (net) credited to the account during
the year.
(b) Further, the amount now disclosed in the The undischarged liabilities of very
accounts is also subject to old period for which details are not
i) Effect of auditors qualification on the available are continued in the books
accounts for 2009-10 and earlier years of accounts of KPTCL. Such liabilities
as also qualification Para 3.6 in Annexure existed in KPTCL Accounting Units
1 to our Auditors Report on accounts for which are the constituents of KPTCL
2010-11. before and after the restructuring of
KPTCL in to KPTCL & ESCOMs.. As
such, undischarged liabilities existed
in such KPTCL Units were written back,
as was done in previous years.

ii) Effect of reconciliation of balances with
ESCOMs as stated in Para 2.5 herein
above.
3.4 Others Payable - Sundry liabilities Rs.
12815.69 lakh shown in Note 10 on
Accounts include
(a) Rs. 11524.78 lakh being reversal of Necessary reversal entry has been
cheque issued but not presented relating passed during April 2012.
to bank accounts with adverse credit
balance as per books.
(b) Rs. 118.19 lakh being amount recovered Rs.118.19 lakh pertains to the amount
from employees in earlier years, pending recovered from the employees from
payment to Employees Welfare Trust, the pay arrears bills consequent to
which was informed to us, is yet to be revision of Pay w.e.f 01/04/2003 and
formed. Non-depositing of the accounts disbursed to employees during 2009-
also contravenes Section 417 of 10. The amount was recovered with
Companies Act 1956. an intention to utilise the same for
employee welfare activities and not for
refund. The amount recovered from the
employees is not in pursuance of his
contract of service as stated in Sec.417
of the Companies Act 1956. As such,
Sec. 417 of Companies Act 1956 does
not apply. However, an expert opinion
will be obtained and action taken
accordingly in future.
3.5 Fixed assets (Note 12 on Accounts) and The value of material at construction
Capital work in Progress (Note 13 on site for the works pending dismantling
Accounts) includes value of materials and/or short closed is accounted in the
relating to works pending dismantling store only when it is returned to Stores.
and/or short closed, which are yet to be Unless the materials are returned to
removed and /or transferred to stores. stores, it is not possible to account the
In the absence of necessary details value of materials in the Accounts.
of amounts relating to such works,
consequential effect could not be
ascertained

3.6 Advance Recoverable from Employees The amount is recoverable out of the
Rs. 329.37 lakh shown in Note 15 on monthly salary / Terminal benefits of
Accounts and Rs. 118.77 lakh shown in the employees / retired employees as
Note 20 on Accounts includes Rs. 248.32 the case may be. Since the amount
lakh relating to shortage etc., proposed to will be recovered from employees /
be recovered from future salaries/terminal retired employees making provision for
benefits. In the absence of necessary irrecoverable balance does not arise.
details, amount required to be provided
towards irrecoverable balance could not
be ascertained.
3.7 Trade Receivables Rs. 202,99.05 lakh

(Note 17 on Accounts)
(a) Includes:
(i) Sundry Debtors for Sale of Power- Reconciliation has been done with
Interstate: Rs. 26.38 lakh, claim in respect to allocation of energy,
respect of which has since been revised accordingly energy bills of MPSEP were
downward to Rs. 5.83 lakh. revised from Rs.26.38 lakh to Rs.5.83
lakh during July 2012. Necessary
accounting entries will be incorporated
during 2012-2013.
(ii) Wheeling charges receivable (net of Out of Rs.1011.68 Lakh, Rs. 87.94
payable) Rs. 1011.68 lakh of which Rs. Lakh has already been recovered
562.11 is outstanding for over three years during 2012-2013. Balance amount
and not realised till date. is to be recovered from KSEB
The above dues are in our opinion doubtful and TNEB, recovery was being
of recovery and had the provision been pursued in Southern Regional Power
made profit for the year would have been Committee(SRPC) meeting. KSEB &
lower by Rs. 582.66 lakh. TNEB are Government Organisations
of respective States & recovery of the
amount is very much certain. As such,
making provision for doubtful debts is
not necessary.

(b) Sundry debtors transmission charges Rs. 19,260.99 lakh is the amount
of Rs. 19,260.99 lakh due from ESCOMs outstanding against the Transmission
are subject to reconciliation consequential charges to be collected from ESCOMs.
effect of which is not ascertainable There is no dispute from any of the
ESCOMs regarding the claim, as the
bills are being issued based on the rate
and capacity allocation as prescribed
by KERC from time to time.
3.8 (a) The Corporation has been providing As the minimum Bonus is being paid,
for bonus to eligible employees for the there is no additional liability in this
year only to the extent of minimum bonus, regard. However, allocable surplus will
without ascertaining allocable surplus be considered and taken into account
and set on available., as per Payment as per the Bonus Act, in future.
of Bonus Act. Consequently additional
liability under the said Act could not be
ascertained. Attention is also drawn to
Note 10.3 on Accounts- Ex-gratia paid is
subject to post facto approval/ ratification
of the Government of Karnataka.
(b) No provision in the account has been The management is pursuing
made for employees contribution towards for recovery from the concerned
provident fund relating to the period employees and some of the employees
August 1999 to March 2006 amounting have given consent for recovery from
to Rs. 97.23 lakh. The contribution Rs. the salary. Rs. 8.32 Lakhs has already
89.60 lakh recovered by PF authorities been recovered during 2012-2013.
has been included in Deposits with Employees Union has been requested
Others in Note 14 on Accounts. We are to pursue recovery from the concerned
informed that management is pursuing for employees. All the efforts will be made
recovery and some recovery having been to recover the amount in full.
effected after the Balance Sheet date, the
amount which will be ultimately borne by
the company cannot be ascertained at
this stage.

3.9 Other Operating Income Miscellaneous Action taken is as per Para. 2.15 of
Recoveries Rs. 13,592.24 lakh shown Annexure-III of ESAAR 1985
in Note 21 include penalty / liquidated
damages relating to Capital Works
(amount not readily ascertainable). In
light of the Corporation capitalizing extra
cost (including interest) on account of
re-tendering , such penalty/ liquidated
damages, in our opinion, are not in the
nature of income referred to in ESAAR,
1985 (para2.15 of Annexure-III) but are
in the nature of receipts in mitigation of
extra cost incurred on account of delay
and hence to be adjusted against cost of
corresponding asset, as per the opinion of
the Expert Advisory Committee of ICAI and
para 2.16 of Annexure-III of ESAAR,1985.
In the absence of necessary details,
consequential effect on the accounts
3.10 Expenses shared by ESCOMS deducted Noted
from Repairs and Maintenance (Note 25)
Rs. 217.35 lakh, Employee Cost (Note
24) Rs. 1177.89 lakh and Administration
and General expenses (Note 26) Rs.
373.15 lakh includes Rs. 1518.79 lakh
claimed from ESCOMs as SLDC charges
which is subject to deduction from Annual
Revenue Requirement (ARR) in the filing
with and approval of KERC.
3.11 Finance Cost (Note 27) is net of interest Factual.
of Rs. 199.05 Lakh recovered from a
contractor in respect of advance referred
to in para 4 (a) below.

3.12 Contingent Liabilities and Commitments Payments are being made from
not provided for (Note 36.1 on Accounts) ESCOMs directly to the concerned
does not include claims made in terms of Organisations and KPTCL is
CERC orders and which are required to discharging its portion of Liability only.
be collected from ESCOMs and remitted As such, no disclosure has been made
by the Corporation as per the Regulation in Note 36.1.
but outstanding as on 31.3.2012 amount
not ascertained.
3.13 Attention is drawn to Note 36.11c that Consequent to revision of Schedule-

previous years figures are not strictly VI of Companies Act 1956, Annual
comparable. Accounts of 2011-12 has been
prepared and presented as per the
requirements of revised Schedule-VI.
As such, figures in the printed Annual
Report for the year 2010-11 cannot be
compared with the figures indicated
under 2010-11 in the Annual Report for
the year 2011-12.
4 In our opinion the following actions require

the approval of the Board:
a) Advance of Rs. 3717.05 lakh Board approval will be obtained during
made to a contractor included under 2012-13
Advance to Suppliers and Contractors
Rs. 5636.39 lakh shown in Note 14 on
Accounts (paid out of term loan taken
by the Corporation) and proposed to be
recovered from retention amount.
b) Extension of time limit for completion of Board approval will be obtained during
project permitted during the year resulting 2012-13
in refund of Rs.7915..9 lakh penalty/
liquidated damages;

c) Refunds/Withdrawal of Miscellaneous Approved vide Board resolution
income Rs. 7724.09 lakh shown KPTCL/B37/4437/2001-02/721 dated
as deduction in Note 21 includes 15/09/2012
Rs. 6961.14 lakh being reduction in
power charges earlier treated as income
receivable form ESCOMS and reversed
during the year
d) Withdrawal of Rs. 262.95 lakh claim for Approved vide Board resolution
delayed payment charges made in earlier KPTCL/B37/4437/2001-02/721 dated
year from Hukkeri Electricity Coop Society, 15/09/2012
written off and included in Miscellaneous
losses and Write off Rs.868.08 lakh shown
in Note 29 on Accounts
5. The consequential effect of the above
comments to the extent ascertainable is
as under
(Rs. in lakhs)
Profit before tax for the

20781.34
year Overstated by
Inventories overstated by 0. 87
Trade Receivables
582.66
overstated by
Other Current Assets
932.00
overstated by
Long Term Provision

understated by 19265.81

BALANCE SHEET AS AT 31st MARCH 2012
(Amount in Rs.)
Sl. Note Account
Particulars AS AT 31-03-2012 AS AT 31-03-2011
No. No. Code
EQUITY AND
I
LIABILITIES
(1) Shareholders Funds
a) Share Capital 1 52.301 1123 26 25 000 690 32 25 000
b) Reserves and Surplus 2 55 to 58 499 52 05 246 422 13 82 406
52.302
Equity Infusion (Shares
(2) 3 & 552 06 00 000 885 00 00 000
pending Allotment)
52.303
2174 84 30 246 1997 46 07 406
(3) Non-Current Liabilities
a) Long-term borrowings 4 51 to 54 4539 44 55 429 4537 30 44 058
Deferred Tax Liability

b) 5 46.802 274 28 98 876 274 28 98 876
(Net)
c) Other long term liabilities 6 42 to 53 1351 77 50 080 2126 18 21 688
d) Long-term Provisions 7 44 33 41 21 014 25 86 20 728
6198 92 25 399 6963 63 85 350
(4) Current Liabilities
a) Short-term borrowings 8 51 to 54 700 00 00 000 522 00 00 000
b) Trade payables 9 41 1688 05 70 904 1588 91 66 999
c) Other current liabilities 10 42 to 46 1201 12 27 153 946 18 04 348
d) Short-term provisions 11 42,44,46 84 00 88 890 3673 18 86 947 116 90 47 271 3174 00 18 618
TOTAL 12046 95 42 592 12135 10 11 374
II ASSETS
1 Non-Current assets
(a) Fixed assets
(i) Tangible Assets 12 10 & 12 6828 27 01 147 6329 49 65 155
(ii) Intangible assets 12 A
(iii) Capital work-in-

13 14 & 15 1789 53 07 240 1771 72 87 768
progress

BALANCE SHEET AS AT 31st MARCH 2012
(Amount in Rs.)
Sl. Note Account
Particulars AS AT 31-03-2012 AS AT 31-03-2011
No. No. Code
Long term loans and 25 to 27

(b) 14 123 15 24 680 195 47 01 598
advances & 28
16, 17,
26, 28.4
(c) Other non-current assets 15 2686 72 06 814 2958 38 15 650
to 28.9 &
31 to 37
2 Current assets
(a) Inventories 16 22 108 20 71 452 106 08 75 689
23 &
(b) Trade receivables 17 202 99 05 493 244 84 21 769
28.1
Cash and cash

(c) 18 20 & 24 173 81 18 620 393 04 24 985
equivalents
Short-term loans and

(d) 19 25 & 27 2 82 41 605 3 88 60 193
advances
16,28.1
(e) Other current assets 20 131 44 65 541 132 16 58 567
to 28.9
619 28 02 711 880 02 41 203
12046 95 42 592 12135 10 11 374
12046 95 42 592 12135 10 11 374
TOTAL 12046 95 42 592 12135 10 11 374

Significant Accounting
35
Polices
36
Other Notes on Accounts
Sd/-
(C.SREENIVASAN)
Financial Adviser (A&R)
Sd/- Sd/- Sd/-

(R.SRIDHARA) (ADITI RAJA) (S.SELVAKUMAR)
Company Secretary Director (Finance) Managing Director
Refer our report of even date

For RAO & SWAMI
Place: Bangalore. (N.Ramesh)
Date : 17.09.2012 PARTNER

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2012
(Amount in Rs.)
Sl. Note Account Current Year Previous Year
Particulars
No No. Code 2011-12 2010-11
Revenue from operations
I 21 61 & 62 1663 00 83 890 1426 81 41 212
(Transmission of Power)
II Other Income 22 62 22 98 09 525 28 02 73 799
III Total Revenue (I+II) 1685 98 93 415 1454 84 15 011
IV Expenses (Net)
1 Power Purchase & Wheeling Charges 23 70 53 70 512 1 15 36 701
2 Employee Costs 24 75 489 27 12 459 386 79 26 079
3 Repairs and Maintenance 25 74 85 64 77 209 70 90 89 536
4 Administrative and Other Expenses 26 76 36 95 98 135 31 07 44 427
5 Finance Costs 27 78 496 82 16 621 428 90 14 992
Depreciation and Amortization
6 28 77 449 53 26 995 406 98 89 290
expenses
77, 79 &
7 Others 29 118 51 17 171 110 15 62 236
80
Total Expenses 1677 28 19 102 1435 97 63 261
Add/(Less) : Prior period credits/
V 30 65 & 83 -5 06 38 130 -17 23 03 260
(charges)
PROFIT BEFORE EXCEPTIONAL
VI AND EXTRAORDINARY ITEMS AND 3 64 36 183 1 63 48 490
TAX
VII Exceptional Items 31 62 5 06 22 898
PROFIT BEFORE EXTRA
VIII 8 70 59 081 1 63 48 490
ORDINARY ITEMS AND TAX
IX Extraordinary items 32 63 & 79
X PROFIT BEFORE TAX 8 70 59 081 1 63 48 490
XI TAX EXPENSE
1 Current Tax 33 81.1 2 01 71 289 76 55 921
2 Fringe Benefit Tax 81.101 - 97 71 350
3 Deferred Tax 34 81.201

Profit / (Loss) for the period from
XII 7 66 59 142 86 92 569
continuing operations

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31st MARCH 2012
(Amount in Rs.)
Sl. Note Account Current Year Previous Year
Particulars
No No. Code 2011-12 2010-11
XIII Earning per equity share 36.10
(1) Basic 9.84 1.26
(2) Diluted 4.82 .58
Significant Accounting Polices 35

Other Notes on Accounts 36
Sd/-
(C.SREENIVASAN)
Financial Adviser (A&R)
Sd/- Sd/- Sd/-
For RAO & SWAMI

NOTE: 01 SHARE CAPITAL
(Amount in Rs.)
Sl. Account
Particulars As at 31-03-2012 As at 31-03-2011
No Code
1 Authorised
2,00,00,000 2000 00 00 000 1000 00 00 000
(Previous Year -
1,00,00,000) Equity
shares of Rs. 1000/-
each
2 Issued,
Subscribed and
Paid up
11232625 (Previous 52.301 1123 26 25 000 690 32 25 000
Year - 6903225)
Equity Shares of
Rs1000/- each )
1123 26 25 000 690 32 25 000

TOTAL 1123 26 25 000 690 32 25 000
Note : 1.1.The reconciliation of the number of shares outstanding is set out below :
As at 31st March 2012 As at 31st March 2011
Particulars
No. of Shares No. of Shares
Equity Shares at the beginning of the
69 03 225 69 03 225
year
Add : Shares issued 43 29 400
Equity Shares at the end of the year 1 12 32 625 69 03 225
Note : 1.2. Details of share holders holding more than 5% shares

As at As at
Name of the Share holder
31st March 2012 31st March 2011
No. of Shares % held No. of Shares % held
Honble Governor, State of
1 12 32 625 100.00 69 03 225 100
Karnataka
Note : 1.3 Refer Note 3.1 regarding Equity infusion

NOTE: 2 RESERVES AND SURPLUS
(Amount in Rs.)
Sl. Account
No Code
Capital Reserve
Capital Reserve 56.2 7 45 46 563 2 39 23 665
Other Reserves
Reserve for Materials
56.610 6 74 593
Cost Variance
Contribution towards cost
55.1 286 26 57 133 219 06 18 846
of capital assets
Special Grant received

from GOK towards flood 55.309 10 00 00 000 10 00 00 000
relief works
Special Grant towards
55.500 13 64 74 999 11 06 74 999
Capital Works
Surplus in Profit and
58 182 15 26 551 179 54 90 303
Loss Account
TOTAL 499 52 05 246 422 13 82 406
Note 2.1 - Movement in Reserves & Surplus

Account Opening Balance as at
Particulars Additions Deductions
Code Balance 31-03-2012
Capital Reserve 56.2 2 39 23 665 5 06 22 898 7 45 46 563
Other Reserves
Reserve for Material
56.610 6 74 593 6 74 593
Cost Variance
Contribution towards cost
55.1 219 06 18 846 72 67 99 287 5 47 61 000* 286 26 57 133
of capital assets
Special Grant received
from GOK towards Flood 55.309 10 00 00 000 10 00 00 000
relief works
Special Grant Towards
55.500 11 06 74 999 2 58 00 000 13 64 74 999
Capital works
Surplus in Profit and
58 179 54 90 303 7 66 59 144 5 06 22 896** 182 15 26 551
Loss Account
Total 422 13 82 406 87 98 81 329 10 60 58 499 499 52 05 246

* Advance for sale of Asset wrongly credited to this account in earlier years withdrawn
and adjusted on sale.
** Transfer to Capital Reserve(See Note 2.3)
Note : 2.2 Contribution towards cost of Capital Assets Rs. 286,26,57,133/- includes
amount collected towards Network Augmentation Charges Rs.180,59,78,270/- (for the
year Rs.49,93,01,907) pending orders of KERC.
Note : 2.3 Additions to Capital Reserve Rs. 5,06,22,896 represents gain on sale of
Land transferred from Profit for the period.
NOTE: 3 EQUITY INFUSION (Shares pending allotment)
(Amount in Rs.)
Sl. Account
No. Code
From Government of 52.302 &

552 06 00 000 885 00 00 000
Karnataka 52.303
TOTAL 552 06 00 000 885 00 00 000
Note : 3.1. Amount received from Government of Karnataka towards Equity Capital.
Shares to the extent of Rs.452,06,00,000/- were allotted on 23-06-2012

NOTE: 04 LONG-TERM BORROWINGS
(Amount in Rs.)
Sl. Account
No. Code
SECURED LOANS
Term Loans
53 &
From Banks 3543 62 22 341 3385 60 56 346
54
Other Financial
978 58 29 439 1124 78 22 895
Institutions
SUB-TOTAL 4522 20 51 780 4510 38 79 241
UNSECURED
LOANS
Term Loans
53 &
From Banks
54
From Others 17 24 03 649 26 91 64 817
SUB-TOTAL 17 24 03 649 26 91 64 817
TOTAL 4539 44 55 429 4537 30 44 058

Note 4.1 Particulars of terms of Repayment and Nature of Security
Balance Outstanding
Sl.
Name of the Bank Term Security Current Year Previous
No.
2011-12 Year 2010-11
1 Loans obtained from UCO Bank 10 Years Hypothecation 503 00 00 000 503 00 00 000
of Plant and
machinery
2 Loans obtained from Vijaya Bank 13 Years Hypothecation 1148 53 89 003 989 60 31 003
of Plant and
machinery
3 Loan drawn from Punjab National 13 Years Guaranteed by 189 75 00 000 189 75 00 000
Bank default Escrow and
Hypothecation of
Assets
4 Loan drawn from Oriental Bank of 13 Years Hypothecation of 47 50 00 000 57 50 00 000
Commerce Assets
5 Loan drawn from Corporation Bank 7 Years Hypothecation of 202 50 00 000 212 50 00 000
(12.5 Cr), Assets
13 Years
(200 Cr)
6 Loan drawn from Bank of 7 Years Hypothecation of 101 42 00 000 125 00 00 000
Maharashtra (25 Cr), Assets
10 Years
(100 Cr)
7 Loan from Bank of India 7 Years Hypothecation of 322 08 00 000 366 56 00 000
(66.56 Cr), Assets
13 Years
(300 Cr)
8 Loans drawn from Bank of Baroda 8.5 Years Hypothecation of 83 33 33 338 116 66 66 670
Assets
9 Loan drawn from Indian Bank 13 Years Hypothecation of 280 00 00 000 290 00 00 000
Assets
10 Loan drawn from Punjab & Sindh 13 Years Hypothecation of 165 50 00 000 35 00 00 000
Bank Assets
11 Loan drawn from Canara Bank 13 Years Hypothecation of 500 00 00 000 500 00 00 000
Assets
12 Loans drawn from HDFC Bank Title deed 2 58 673

Note 4.1 Particulars of terms of Repayment and Nature of Security
Balance Outstanding
Sl.
Name of the Bank Term Security Current Year Previous
No.
2011-12 Year 2010-11
Secured Loans from Others

1 Loans from REC 13 Years Guaranteed by 12 80 53 107 14 71 98 828
State Govt. and
Escrow
2 Loans drawn from Power Finance 10 Years Guaranteed 965 77 76 332 1110 06 24 067
Corporation Ltd., by GOK and
Mortgage of
assetsTerm-10
Years
UNSECURED LOANS
Others
1 Loans from REC - Rationalised Guaranteed by 24 55 820 36 93 185
REC-Loans (Guaranteed by GOK) GOK
2 APDRP - REC Loan Account 13 Years 4 38 86 349 5 48 57 937

Term-13 years
3 State Govt. loans 20 Years 5 94 07 217 6 53 47 939
Term-20 Years
4 Loans of KPTCL parked with GOK 13 Years 6 66 54 263 14 52 65 756
(Ref Note 4.4)
4539 44 55 429 4537 30 44 058
Note : 4.2-There is no continuing default in repayment of any of the above loans or payment
of interest as on 31-03.2012
Note: 4.3 Loans guaranteed by GOK Secured Term Loans 9785829439 11247822895
from Financial Institutions Unsecured Term loans from 2455820 3693185
others
Note : 4.4. Balance loan taken over by GoK & agreed to be serviced by GoK vide Notification
dated: DE 8 PSR 2002 dated: 31.5.2012.

NOTE: 5 DEFERRED TAX LIABILITY
(Amount in Rs.)
Sl. Account
No. Code
Deferred Tax
46.802 274 28 98 876 274 28 98 876
Liability
TOTAL 274 28 98 876 274 28 98 876
Note 5.1
Company has already provided Deferred Tax Liability to an extent of Rs.274,28,98,876/-

upto previous year 2007-08. The Company is of the view that the DTL provided is
sufficient and hence not provided during the current year.

NOTE 06 : OTHER LONG TERM LIABILITIES
(Amount in Rs.)
Sl. Account
No Code
EMPLOYEE BENEFITS
1 Family Benefit Fund 44.140 42 94 10 032 41 70 78 058
to
44.143
OTHERS
2 Transmission charges collected 46.989 1 26 18 427 1 26 18 427
pending Refixation of Tariff-
Hukkeri
3 Transmission charges collected 46.984 261 17 65 715 261 17 65 715
pending Refixation of Tariff- to
ESCOMS (See Note 6.3) 46.988
4 Payables - ESCOMS 42 & 46 16 52 406 16 52 406

5 Security Deposits in cash from 46.101 19 88 95 036 54 53 86 662
Suppliers / Contractors
6 KPTCL Pensioners / Family 46.103 3 58 83 414 4 56 63 742
Pensioners Family Benefit /
Security Fund
7 Retention Money - Bill amount 46.104 321 43 26 235 483 32 41 454
retained as per terms of P.O /
Turnkey Contract
8 Penalty recovered pending 46.109 66 86 50 941 346 10 27 001
decision for refund

(See Note 6.2)
9 Encashment of Bank Gaurantee 56.202 3 49 24 683 2 54 48 076

pending decision for adjustment
to Capital works
10 Liability for Expenses 46.4 7 13 38 910 7 13 38 910
11 Sundry Liabilities 46.9 36 69 55 316 219 23 55 317

12 UI Charges payable- Intra state 46.990 117 33 98 431
ABT to
46.994
13 Security Deposit from 46.920 51 875 52 800
Employees

NOTE 06 : OTHER LONG TERM LIABILITIES
(Amount in Rs.)
Sl. Account
No Code
14 Additional Fixed cost of TBPCL 46.983 543 84 00 000 543 84 00 000
recoverable from ESCOMS
pending adjustment to subsidy
15 Adjustments pending re- 52.304 43 28 77 090 43 23 94 689

notification by GOK to
52.309
Sub-Total 1351 77 50 080 2126 18 21 688
TOTAL 1351 77 50 080 2126 18 21 688
Note 6.1 : Family Benefit Fund represents amount collected from employees and
is net of disbursement made (including Companys Contribution) on retirement /
death
Note 6.2 :Recoveries from Suppliers / Contractors, including amounts recovered by
way of encashment of Bank Guarantees, for delay in supply / execution of work is
retained in Penalty Recovered pending decision for Refund. Upon resolution of the
dispute, the amount in excess of the Refund made to the Suppliers / Contractors, if
any, is suitably adjusted.
Note 6.3 : Rs.261,17,65,715/- is the difference between Transmission charges

approved by KERC (19.42 paise per unit) & Transmission charges already billed by
KPTCL (26.23 paise per Unit). The Transmission Tariff as determined by KERC in
its order dated 31.12.2007 was appealed by KPTCL before the Appellate Tribunal
for Electricity (ATE), New Delhi. The Honble ATE passed an Interim Order staying
the operation of the KERC Order and directed the Company to collect Transmission
Charges @ 19.42 Ps./Unit, which rate has been reckoned for Accounting Revenue for
the year. Subsequently, the ATE in its Order Dated 09.05.2008 allowing the Appeal
of the Company has passed Orders requiring KERC to carry out certain modifications
in the Transmission Tariff. The KERC has preferred an Appeal against the Order of
the ATE to the Honble Supreme Court. The decision of the APEX Court would have
an impact on the Profit reported, the extent of which is not determinable.

NOTE 07 : LONG TERM PROVISIONS
(Amount in Rs.)
Sl. Account
No. Code
Provision for
Employee Benefits
44.130, 33 41 21 014 25 86 20 728
Provision for Leave
44.131
encashment
TOTAL 33 41 21 014 25 86 20 728
Note 7.1 : Movement in Provision

Movement in provision
Opening Provision made Received from Payment made Closing
Balance during the year the Units during the year* Balance
25 86 20 728 35 13 23 975 63 52 422 28 21 76 111 33 41 21 014

* Refer Note 24.3 for details
NOTE : 08 SHORT-TERM BORROWINGS

(Amount in Rs.)
Sl. Account
No. Code
Borrowings for
working capital :
UNSECURED
LOANS
Short term Loans

53.324 700 00 00 000 522 00 00 000
from Banks
TOTAL 700 00 00 000 522 00 00 000
Note 8.1
There is no continuing default in repayment of any of the above loans or payment of interest
as on 31-03.2012

NOTE 09 : TRADE PAYABLES
(Amount in Rs.)
Sl. Account
No. Code
I LIABILITIES
Sundry
Creditors for
purchase of
power
Tamilnadu 41.101 26 44 50 757 26 44 50 757
Electricity Board
Andhra Pradesh 41.104 3 85 04 127 3 85 04 127
Transmission
Corp.
Karnataka Power 41.108 1615 36 77 045 1507 15 55 675
Corporation Ltd.
Visvesvaraya 41.109 27 28 35 035 27 28 35 035
Vidyuth Nigama
Limited
P.G.C.I.L. 41.113 88 54 274

JTPCL 41.125 9 97 40 936 9 97 40 936
Royalaseema 41.129 2 23 50 948 2 23 50 948
Alkalies
Tata Company 41.131 1 90 96 055 1 90 96 055
Ltd.
Thanneerbhavi 41.133 43 69 663
Co. Ltd.
Chathisghar State 41.156 83 32 195 83 32 195
Electricity Board
Mysore Paper 41.301 7 74 93 528
Mills Ltd
Provision for 41.500 15 83 806 15 83 806
Liability for
Purchase of
Power
1688 05 70 904 1588 91 66 999
TOTAL 1688 05 70 904 1588 91 66 999

NOTE 10 : OTHER CURRENT LIABILITIES
(Amount in Rs.)
Sl. Account
No. Code
Current Maturities of Long
Term Debts.
From Banks 206 98 34 005 298 31 80 600
From Others 155 87 54 622 178 00 97 045
Sub-Total 362 85 88 627 476 32 77 645

Interest accrued but not due on 46.710 33 81 63 455 33 81 63 455 33 47 98 948 33 47 98 948
borrowings
Other Payables
Sundry Liabilities 46.9 128 15 69 381 18 84 45 192
Miscellaneous Deposit 46.966 18 61 81 490 13 71 24 346

UI charges collected from short 46.937 21 93 60 296 40 73 29 951
term open access customers
and payable / adjustable to

ESCOMS
Sub-Total 168 71 11 167 73 28 99 489

Security Deposits in cash from 46.101 11 37 77 950
Suppliers / Contractors
KPTCL Pensioners / Family 46.103 2 05 80 000
Pensioners Family Benefit /
Security Fund
Retention Money - Bill amount 46.104 162 42 62 252
retained as per terms of P.O /
Turnkey Contract
Penalty recovered pending 46.109 131 02 04 026
decision for refund

Deposit Contribution works 47.3 61 92 18 424 100 62 02 258
Liability for Suppliers/Works 42 128 07 12 828 97 72 53 568
Payables - BESCOM 42 35 83 45 138 69 38 04 222

Payables - MESCOM 42 10 07 54 208 9 08 42 685
Payables - HESCOM 42 12 04 81 483 27 67 06 576
Payables - GESCOM 42 4 87 588 3 85 38 763
Payables - CESCO 42 2 81 89 897 9 57 93 517
Sub-Total 557 70 13 794 317 91 41 589

(Amount in Rs.)
Sl. Account
No. Code
Staff Related Liabilities

Pension & Leave contribution 44.275 7 21 15 770 4 36 66 042
remitted by other Department
payable to P&G Trust
Receivables - P & G Trust 28.907 5 87 27 621 -15 43 25 117

Provision for KPTCL 44.150 11 255 9 69 848
Contribution to Pension Scheme
with effect from 01/4/2006
Salary payable 44.310 24 44 871 20 95 023
&
44.311
Unpaid Salaries 44.210 37 852 77 535
Unpaid Bonus 44.220 27 086 26 289
Bonus payable 44.320 20 89 324 58 08 519
Ex-gratia payable 44.330 3 32 01 781 2 96 23 184
Sub-Total 16 86 55 560 -7 20 58 679

Funds received from Resources 46.108 3 29 57 362 31 60 71 135
Section, KPTCL to SLDC
Liability for Expenses 46.410 47 35 49 318 84 91 92 006
To
46.470
Credit balance in Receivable
towards payment of Prinicipal,
Int & Gurantee commission on

borrowings and others
BESCOM 28.853 46 00 974 34 14 004
MESCOM 28.854 4 84 945 4 07 219
HESCOM 28.855 1 06 26 295 82 27 515
GESCOM 28.856 11 45 756 9 47 223
Receivable from GOK towards 28.859 1 78 39 558 1 73 07 798
payment of Prinicipal, Int &
Gurantee commission on loans

parked with GOK
CESCOM 28.860 46 50 659 36 14 381

(Amount in Rs.)
Sl. Account
No. Code
Amount recoverable in cash 28.926 6 32 65 678 -57 61 80 434
from BESCOM Units in respect
of other transaction
Amount recoverable in cash 28.927 25 74 005 -9 92 55 491
from MESCOM Units in respect

of other transaction
Sub-Total 61 16 94 550 52 37 45 356
TOTAL 1201 12 27 153 946 18 04 348
Note 10.1
Details of Current maturities of long term debts
Sl. Current Year Previous Year
Name of the Bank From Banks
No. 2011-12 2010-11
1 Loans obtained from Vijaya Bank 41 06 42 000 35 81 42 000
(Hypothication of assets) Term-13 Years
2 Loan drawn from Punjab and Sindh Bank 34 50 00 000 34 50 00 000
(Guaranteed by default Escrow and
Hypothication of Assets)
Term-13 Years
3 Loan drawn from Oriental Bank of Commerce 10 00 00 000 10 00 00 000
(Hypothication of assets)
Term-13 Years
4 Loan drawn from Corporation Bank 10 00 00 000 10 00 00 000
Term-7 Years (12.5 Cr),13 Years (200 Cr)
5 Loan drawn from Bank of Maharashtra 23 58 00 000 20 00 00 000
Term-7 Years (25 Cr),10 Years(100 Cr)
6 Loan from Bank Of India(Hypothication of 44 48 00 000 44 48 00 000
assets)
Term-7 Years(66.56 Cr),13 Years(300 Cr)

Note 10.1
Details of Current maturities of long term debts
Name of the Bank From Banks
No. 2011-12 2010-11
7 Loans drawn from Bank of Baroda 33 33 33 332 33 33 33 332
(Hypothecation of Assets)
Term-8.5 Years
8 Loan drawn from Indian Bank (Hypothication 10 00 00 000 10 00 00 000
of assets)
Term-13 Years
9 Loan drawn from Bank of Rajasthan 100 00 00 000
Term-13 Years
10 Loans drawn from HDFC (Title deed) 2 58 673 19 05 268

Sub-Total 206 98 34 005 298 31 80 600
From Others
1 Loans from REC (Guaranteed by State Govt. 1 91 45 719 1 91 45 719
and Escrow)
Term-13 years
2 Loans drawn from Power Finance Corporation 144 28 47 735 159 54 04 059
Ltd., (Guaranteed by GOK and Mortgage of
assets)
Term-10 Years
UNSECURED LOANS
Others
1 Loans from REC - Rationalised REC-Loans 12 37 365 42 44 154
(Guaranteed by GOK)
2 APDRP - REC Loan Account 1 09 71 588 1 09 71 588
Term-13 years
3 State Govt. loans 59 40 722 59 40 722
Term-20 Years
4 Loans of KPTCL parked with GOK 7 86 11 493 14 43 90 803
(Ref Note 4.4)
Sub-Total 155 87 54 622 178 00 97 045

Grand Total 362 85 88 627 476 32 77 645

Note 10.2 : As per information available with the Company, there are no dues to Micro,
Small and Medium Enterprises as defined under Micro, Small and Medium Enterprises
Development Act, 2006.
Note 10.3 : Exgratia paid to employees in lieu of Bonus for the years 2000-01 to 2010-11 is
subject to post facto approval/ratification of the Government of Karnataka.
Note 10.4 : Balances due to/due from P&G Trust is under reconciliation
Note :10.5 : There is no continuing default in repayment of any one of the above loan or
payment of interest as on the date of 31-03.2012
NOTE 11 : SHORT TERM PROVISIONS

(Amount in Rs.)
Sl. Account
No. Code
Provision for Employee
Benefits
Provision for Pension 44.122, 52 14 67 168 70 27 57 809
and Gratuity payable to 44.274
P & G Trust
Other Provisions
Provision for Income-Tax 46.800 1 74 18 570 35 95 19 018
Provision for FBT 46.801 1 66 86 000
Adhoc Provision for work 42.601 30 12 03 152 9 00 84 444
completed in the field but
bills not received
TOTAL 84 00 88 890 116 90 47 271
Note 11.1 : Liability for pension and gratuity for service up to 31.5.2002 is met by the
Government of Karnataka and liability for the subsequent period arising from 1.6.2002,
is met by the Corporation by contribution to the Trust, based on Actuarial valuation.
Note : 11.2 :Pending Receipt of report of actuarial valuation as on 31/03/2012,
monthly Pension/Gratuity contribution for the year is accounted as per rates indicated
in report of actuarial valuation report as on 31/03/2011 (previous year report as on
31/03/2009) as under
2011-12 2010-2011 Remarks
Pension 29.11% 26.13% Percentage of Basic+ Dearness Pay+DA
Gratuity 3.34% 2.24% Percentage of Basic+DA

Note : 11.3: Balances due to the Pension Trust and the Gratuity Trust is under
reconciliation with the balance as per the books of the respective trusts.
Note : 11.4 Movement in Provision for Pension & Gratuity
Movement in provision
Opening Provision made during Payment made during Closing
Balance the year the year Balance
70 27 57 809 82 99 98 629 101 12 89 270 52 14 67 168

99
NOTE-12 FIXED ASSETS AND ACCUMULATED DEPRECIATION - TANGIBLE ASSETS
Gross Block Depreciation Net Block
As at Deductions/ As at A/c As at Deductions/ As at As at

Asset Group A/c Code Additions Additions As at 31/03/2012
01/04/2011 Adjustments 31/03/2012 Code 01/04/2011 Adjustments 31/03/2012 01/04/2011
Land & Rights 10.1 139 01 37 881 24 79 67 396 80 48 305 164 61 53 582 12.1 139 01 37 881 164 61 53 582
Land held under 10.102

4 34 69 773 - 8 47 571 4 26 22 202 4 34 69 773 4 26 22 202
Lease & 10.103
Buildings 10.2 360 32 55 472 26 77 17 225 1 05 24 239 388 14 96 936 12.2 80 08 51 232 12 41 82 975 59 967 92 50 94 174 280 24 04 240 295 64 02 762
Hydraulic Works 10.3 35 64 91 588 6 24 62 096 84 84 113 42 74 37 797 12.3 5 19 89 996 2 09 08 196 79 324 7 29 77 516 30 45 01 592 35 44 60 281
Other Civil Works 10.4 32 53 41 955 2 42 13 955 18 62 594 35 14 18 504 12.4 4 65 97 733 1 14 68 510 17 709 5 80 83 952 27 87 44 222 29 33 34 552
Plant & Machinery 10.5 5281 06 72 377 542 37 41 401 -76 53 51 737 5746 90 62 041 12.5 15 91 71 78 192 283 43 92 629 -29 52 15 113 18 45 63 55 708 3689 34 94 185 3901 27 06 333
Lines Cable
10.6 3151 09 69 677 388 27 05 501 14 92 74 339 3554 29 49 517 12.6 10 03 38 73 983 168 03 44 032 -3 18 17 298 11 68 24 00 717 2147 70 95 694 2386 05 48 800
Networks
Vehicles 10.7 6 75 32 244 1 20 32 156 - 48 13 795 7 47 50 605 12.7 5 20 31 867 24 50 007 - 51 51 356 4 93 30 518 1 55 00 377 2 54 20 087
Furniture & Fixtures 10.8 11 39 06 346 1 07 45 039 - 35 21 126 12 11 30 259 12.8 4 04 14 949 65 84 979 - 1 91 840 4 68 08 088 7 34 91 397 7 43 22 171
Office Equipments 10.9 3 33 22 174 16 35 296 1 64 160 3 51 21 630 12.9 1 71 96 380 13 96 247 - 2 01 374 1 83 91 253 1 61 25 794 1 67 30 377
Total 9025 50 99 487 993 32 20 065 -59 61 76 479 9959 21 43 073 2696 01 34 332 468 17 27 575 -33 24 19 981 3130 94 41 926 6329 49 65 155 6828 27 01 147
Previous Year
Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

7808 59 28 283 1287 85 19 108 -70 93 47 904 9025 50 99 487 2305 91 43 330 421 83 95 055 -31 74 04 054 2696 01 34 331 5502 67 84 953 6329 49 65 156
figures
Fixed Assets
Note 12.1 - Land and Title Deeds
a) Corporation is in possession of lands aggregating 6809 Acres 39 Guntas consisting
of 6257 Acres 24 Guntas under full ownership, 173 A 13 G of Forest land and 379 A 2 G
of Government & Private Lands on lease. Further, process of updating the land records
including title is in progress.
b) Land Rs. 164,61,53,582/- includes Rs.12,12,000/- given on lease. Refer Note 21.1
Note 12.2 - Land and Buildings
Land and Buildings (including Powerhouses) but excluding installations have been
accounted on the basis of Balance Sheet Restructuring Program issued by the Government
of Karnataka. Formalities for transfer of title of certain assets in favor of the Corporation are
pending.
Note 12.3 - Plant & Machinery
Plant & Machinery does not include cost of assetss obtained on lease from IDBI are
retained by the Corporation after expiry of the Primary lease period pending agreement on
the price. The lessor has demanded Rs.1,12,50,000 (including Rs.59,60,000 of assets held
by ESCOMs) which is not accepted by the Corporation. Necessary entry for capitalisation
of the asset and depreciation from 31/12/2003, date of expiry of Primary lease period, will
be provided in the Accounts after settlement on the price.
NOTE 12A : INTANGIBLE ASSETS

(Amount in Rs.)
Sl. Account
No. code
Custom built 18 84 65 472 84 65 472 84 65 472 84 65 472
Application software
for internal use
Less : Depreciation 84 65 472 84 65 472 84 65 472 84 65 472
to date
Written down value

Sub Total
TOTAL

NOTE: 13 CAPITAL WORKS IN PROGRESS
(Amount in Rs.)
Sl. Account
No. Code
Capital Work in 14 1789 53 07 240 1771 65 36 285
Progress
Sub Total 1789 53 07 240 1771 65 36 285

Revenue 15.201 7 51 483
expenses to
pending 15.206
allocation over
Capital Works
Sub Total 7 51 483
TOTAL 1789 53 07 240 1771 72 87 768

Note 13.1 :Balance includes Rs.22,76,01,956/- in respect of CWIP(14 Series) under
reconciliation to be identified with correct Work Order. Same will be reconciled
during 2012-13

NOTE 14 : LONG TERM LOANS AND ADVANCES
(Amount in Rs.)
Sl. Account
No. Code
1 Capital Advances
Unsecured
(Considered Good)
Advances to 28.411 1 06 577 76 20 94 975
Contractors
1 06 577 76 20 94 975
2 Security Deposits
Unsecured
(Considered Good)
Security Deposit made 28.936, 3 42 140 3 42 140 2 61 220 2 61 220
with ESCOMS for 28.937
obtaining power supply
to KPTCL Installations
Other Loans and

3
Advances
Secured (Considered
Good)
Advances to Staff - 27.101 16 91 547 16 91 547 33 25 256 33 25 256
Interest Bearing to
27.106
Unsecured
(Considered Good)
Deposits with Others 28.935 55 59 96 610 55 59 96 610 49 07 96 400 49 07 96 400
Advance to Suppliers 25 & 26 56 36 38 923 23 90 39 602
and Contractors
Advance Income Tax, 27.4 & 10 97 48 883 45 91 84 145
Tax deducted at source, 28.821
other tax payment (Net
of Provision) (Refer
Note No.14.1)
67 33 87 806 69 82 23 747
TOTAL 123 15 24 680 195 47 01 598
Note 14.1 : Includes Rs.4,54,06,442 withheld by department against demand disputed
by the Company refered to in Note No.36.1

NOTE 15 : OTHER NON CURRENT ASSETS
(Amount in Rs.)
Sl. Account
No. Code
ASSETS NOT IN USE

WDV of Faulty / 16.2 5 05 63 980 9 44 10 760
Dismantled Assets
Transformers issued to 26.604 18 29 33 713 15 51 74 914
Contarctors / Suppliers for
repairs
Deferred Costs
Preliminary expenditure 17.301 3 12 73 816 1 84 77 566
on survey / feasability
studies of projects not yet

sanctioned
Turnkey Contractors 26.605 733 22 30 709 819 56 55 001

Control Account
Amounts Recoverable 28.401 3 29 37 577 4 69 58 764

from Employees
Subsidy / Grants 28.620 1396 91 88 716 1398 42 11 876
receivable from GOK
Claims for Loss / Damage 28.72

to Materials
Claims for Loss / Damage 28.74 3 00 848 2 82 478

to Capital Assets
Other Receivables 28.8 & 35 61 704 61 76 32 737

28.9
UI Charges pertaining to 28.976 to 117 33 98 431
Intra state ABT 28.980
Prepaid Expenses 28.820 1 20 55 683 1 63 74 691

Regulatory Asset- 28.968 to 543 84 00 000 543 84 00 000
Receivable towards 28.973
additional fixed cost of
TBPCL from ESCOMS

NOTE 15 : OTHER NON CURRENT ASSETS
(Amount in Rs.)
Sl. Account
No. Code
Electricity Tax and 46.300 22 17 411 -540140
Other levies payable to

Government
Pooled Loan Account 53.999 6 66 54 263 14 52 65 756

(Refer Note 4.4)
Inter Unit Accounts 31 to 37 -25 51 11 606 -30 18 87 184
TOTAL 2686 49 89 403 2958 38 15 650
Note 15.1- WDV of Faulty/ Dismantled Asset aggregating Rs. 5,05,63,980/- is net of
depreciation which has been charged at normal rates on WDV as on date of dismantling.
Note 15.2 - Transformers with book value of Rs. 18,29,33,713/- sent for repairs is net of
depreciation charged on such assets during the period of repair on WDV as on date of
dismantling.
Note 15.3- Inter Unit Account - Rs. 25,51,11,606/- represents net credit balance under
reconciliation

NOTE - 16 INVENTORIES
(Amount in Rs.)
Sl. Account
No. Code
I Stores & Spares
Materials Stock Account 22.610 108 30 92 236 105 48 87 361

Materials in Transit 22.680 3 75 677
Account.
Sub-Total 108 30 92 236 105 52 63 038

II Materials stock Excess/
Shortage Pending
Investigation.
Stock Excess pending 22.810 - 11 07 443 - 2 89 398

Investigation.
Stock Shortage pending 22.820 86 659 59 02 049
investigation.
Sub-Total - 10 20 784 56 12 651
TOTAL 108 20 71 452 106 08 75 689
Note 16.1 - Material stock includes Rs. 82,60,329/- value of items identified as obsolete.

NOTE : 17 TRADE RECEIVABLES
(Amount in Rs.)
Sl. Account
No. Code
(Un-secured and
considered good)
Sundry Debtors for
Transmission Charges
BESCOM 23.101 19 72 52 311 22 75 44 367
MESCOM 23.102 17 77 61 635 16 80 49 810
HESCOM 23.103 70 05 90 457 107 34 99 604
GESCOM 23.104 46 88 24 478 23 98 26 867
CESCO 23.107 38 16 70 404 62 60 17 125

Sundry Debtors for 23.109 2 27 354
Transmission charges-
Hukkeri Co-op Soceity.
Sundry Debtors for 23.6 26 38 440 26 38 440
sale of Power Inter
State
Sundry debtors - 23.7 2 62 95 130
Delayed payment
charges
Sub-Total 192 87 37 725 236 40 98 697
Sundry debtors - 28.120 10 11 67 768 10 11 67 768 8 43 23 072 8 43 23 072
Wheeling charges-
Other states
Sub-Total 202 99 05 493 244 84 21 769
(Un-secured and
considered doubtful)
GESCOM 92 35 580 92 35 580

Sub-Total 203 91 41 073 244 84 21 769
Provision for Doubtful
23.8 92 35 580 92 35 580 92 35 580 92 35 580
Debts
TOTAL 202 99 05 493 243 91 86 189

Note 17.1 - Sundry Debtors
This Year Previous Year
1) Outstanding Over 6 months 8 17 01 487 9 42 47 810
2) Others 194 82 04 006 234 49 38 379
NOTE 18 : CASH AND CASH EQUIVALANTS

(Amount in Rs.)
Sl. Account
No. Code
Balance with Banks 20 & 24 167 42 51 920 167 42 51 920 392 72 13 860 392 72 13 860
Cash Accounts
Cash on Hand 24.110 8 43 070 8 43 070 4 79 839 4 79 839
Others
Govt. Treasury 24.850 81 976 81 976
Postage stamps on
24.120 1 82 155 1 28 522
hand
Imprest 24.210 24 26 481 21 90 500
24.5,
Funds in Transit 6 03 33 018 6 30 23 630 3 30 288 27 31 286
24.6
TOTAL 173 81 18 620 393 04 24 985
Note : 18.1 : One Bank Account with Book Balance of Rs.2,16,323/- is under attachment
of the PF Authorities
Note : 18.2 : The Book Balance in ESCROW Bank Accounts - Rs. 3,21,58,022/-

NOTE 19 : SHORT TERM LOANS AND ADVANCES
(Amount in Rs.)
Sl. Account
No. Code
Advances
Recoverable in cash
or in kind or for value
to be received
Secured Considered
good
Advances to Staff - 27.101 14 77 810 22 12 301
Interest Bearing to
27.106
Unsecured
Considered good
Advances to Staff - 27.201 2 07 02 525 2 93 88 209
Interest Free to
27.210
Amount Recoverable 25.502 60 61 270 72 59 683
from Suppliers and
Contractors towards
TDS remitted by
KPTCL on their behalf
TOTAL 2 82 41 605 3 88 60 193

NOTE 20 : OTHER CURRENT ASSETS
(Amount in Rs.)
Sl. Account
No. Code
WDV of Obsolete/
Scrapped Assets 16.1 12 44 82 977 6 01 23 460
meant for disposal
Less : Provision for
10 46 28 326 1 98 54 651 4 80 47 699 1 20 75 761
obsolescence
Income Accrued but
28.3 84 69 141 1 67 37 021
not Due
Amounts Recoverable
28.4 1 18 76 751
from Employees
Other receivables from
28.8 50 00 00 000
GOK
Other Receivables - 28.8 & 28.9,
6 93 42 607 6 33 74 101
BESCOM 28.125
10 45 19 155 10 42 39 218
MESCOM 28.126
14 57 35 227 30 01 51 283
HESCOM 28.127
27 50 63 417 24 44 10 410
GESCOM 28.128
Other Receivables -
28.9 5 39 43 059 10 95 24 741
CESCO
Payable to BESCOM
towards loan drawn by
42.258 5 20 492 5 20 492
KPTCL on behalf of
BESCOM
Payable to HESCOM
42.260 75 24 429 75 24 429
KPTCL on behalf of
HESCOM
Payable to GESCOM
42.261 12 85 154 12 85 154
KPTCL on behalf of
GESCOM
Pooled Loan Account
53.999 7 86 11 493 14 43 90 803
(Refer Note 4.4)
28.810,
Other Receivables 3 77 19 965 129 46 10 890 31 74 25 154 130 95 82 806
28.917
TOTAL 131 44 65 541 132 16 58 567

NOTE: 21 REVENUE FROM OPERATIONS
(Amount in Rs.)
Sl. Account
Particulars Current Year 2011-12 Previous Year 2010-11
No. Code
Transmission
Charges :-
BESCOM. 61.211 746 75 19 072 595 09 68 264
MESCOM. 61.212 128 95 94 544 96 85 64 358
HESCOM. 61.213 290 36 85 556 236 89 75 154
GESCOM. 61.214 206 54 10 960 136 83 18 528
CESCO 61.217 165 46 17 312 113 70 74 166
Hukkeri Co-op
61.219 4 05 26 300 5 27 08 846
Soceity.
Open Access
61.218 26 47 88 286 22 95 10 720
Customers
Sub - total 1568 61 42 030 1207 61 20 036
Other Operating
Income
Profit on sale of
62.330 4 48 27 013 1 35 01 025
stores
Sale of scrap 62.340 8 18 01 194 8 79 62 032
Other Miscellaneous
62.360 1 40 38 665 1 77 76 080
receipts
Reactive Energy
Charges demanded 62.361 1 62 270 1 41 566
on IPPs
Revenue from IPPs
for excess drawal of
62.362 39 6 97 672
Energy from KPTCLs
Grid
Open access
62.363 51 30 586 40 48 960
Processing fee
Excess found on
physical verification 62.905 17 95 044 4 74 020
of Materials Stock.
Supervision Charges 62.907 10 59 14 984 7 83 31 919
Other Receipts 62.908 78 54 136 23 11 802

NOTE: 21 REVENUE FROM OPERATIONS
(Amount in Rs.)
Sl. Account
No. Code
Miscellaneous
62.917 135 92 23 618 202 10 17 362
Recoveries.
Incentives received 62.918 29 637 2 35 035
Wheeling charges
61.8 5 55 74 159 5 00 24 751
recoveries
Delayed payment
charges from Hukkeri
61.915 2 62 95 130
Electricity Co-op
Soceity
Sub - total 167 63 51 345 230 28 17 354
Less:Refunds/
withdrawal of
83.830,
miscellaneous -73 24 09 485 94 39 41 860 -110796178 219 20 21 176
83.834
income accounted in
the previous Year
TOTAL 1663 00 83 890 1426 81 41 212
Note 21.1 : Miscellaneous recoveries Rs.135,92,23,618/- includes :
(i) Lease Rent Rs. 40,400/- in respect of lease of 21 x 88 meters of land at TL &
SS Chikkodi under non-cancellable lease grant in the present year. Lease amount is
recognised on Straight line basis over the lease term.
(ii) Penalties, liquidated damages recovered and not refunded for more than three
years.
(iii) Unclaimed credit balance under Deposit Account - 46.101 taken to Income.

NOTE: 22 OTHER INCOME
(Amount in Rs.)
Sl. Account
No. Code
Interest
Interest on Staff Loans 62.210 77 70 817 1 31 05 180
and Advances. to
62.214
Interest on securities. 62.221 300 600

Interest on Bank Fixed 62.222 5 36 39 255 3 22 45 329
Deposits
Interest on Bonds / 62.223
Debentures of other
Electricity Boards
Interest on Advances 62.260 18 537
to Suppliers /
Contractors
Interest from Banks. 62.270 1 26 274 68 555
Sub-Total 6 15 55 183 4 54 19 664

Other Non-Operating
Income
Rental from Staff 62.901 7 56 92 448 4 77 45 887
Quarters
Rental from others 62.902 8 56 010 7 13 454

Rental from BESCOM 62.925 4 91 55 226 4 25 85 727
Rental from MESCOM 62.926 73 37 085 55 74 232
Rental from HESCOM 62.927 46 69 070 42 23 488
Rental from GESCOM 62.928 53 39 354 37 60 171
Rental from CESC 62.929 69 40 024 68 20 906

Excess provision in
earlier years no longer 62.923 1 82 65 125 12 34 30 270
required
Sub-Total 16 82 54 342 23 48 54 135
TOTAL 22 98 09 525 28 02 73 799

NOTE : 23 Power Purchase and Wheeling Charges
(Amount in Rs.)
Sl. Account Current Year Previous Year

Particulars
No. Code 2011-12 2010-11
Purchase of Power
Tamilnadu Electricity 70.101 24 36 589
Board
Transmission charges to 70.113 21 83 413 91 00 112
Power Grid Corporation
of India Ltd. (Refer
Note 23.1)
Wheeling Charges - 70.400 31 87 099 53 70 512
TNEB
TOTAL 53 70 512 1 15 36 701
Note - 23.1 The Expenditure Booked pertains to the Power purchased prior to the
period 9/06/2005, paid in terms of CERC order

NOTE : 24 EMPLOYEE COST
(Amount in Rs.)
Sl. Account
No. Code
Salaries and Wages
Salaries 75.1 186 07 32 941 123 13 20 849
Dearness Pay 75.180 19 61 74 169 72 69 29 616

to
75.185
Over Time 75.2 6 42 63 512 4 38 84 374
Dearness Allowance 75.3 133 78 24 918 106 48 51 045
Other Allowances 75.4 40 20 94 639 30 75 12 899
Bonus & Exgratia 75.5 3 69 94 221 4 37 98 324

Earned leave 75.617 35 13 23 975 13 40 06 595
encashment
Payment to helpers/ 75.630 1 20 10 065 1 23 20 116
employees of
Monsoon gang
Sub-Total 426 14 18 440 356 46 23 818

Contribution to
Pension & Other
Funds
KPTCL Contribution 75.830, 95 87 48 530 55 42 24 893
to P&G Trust (Refer 75.831
Note No. 24.4) &
75.840
Sub-Total 95 87 48 530 55 42 24 893
Staff Welfare
Medical Expenses 75.611 4 28 67 838 3 46 78 201
reimbursement
Leave travel 75.612 900 34 716
assistance
Payment under 75.629 9 82 505
workmens
compensation Act

NOTE : 24 EMPLOYEE COST
(Amount in Rs.)
Sl. Account
No. Code
Staff Welfare 75.7 2 56 29 358 1 81 44 544
expenses
(Refer Note 24.5)
Terminal Benefits - 75.8 5 48 146 5 10 483
Others
Terminal Benefits 75.860 1 12 55 603 79 33 146
- FBF Contribution
(Refer Note 24.6)
Sub-Total 8 03 01 845 6 22 83 595

Less : Expenses 75.910 -11 77 89 355 -7 54 52 227
shared by ESCOMS
Expenses Capitalised 75.9 -28 99 67 001 -40 77 56 356 -23 77 54 000 -31 32 06 227
TOTAL 489 27 12 459 386 79 26 079
Note 24.1 : Salaries and Wages includes following in respect of employess covered under
New Defined Contributory Pension Scheme (NDCPS)
Salaries 75.117,75.189 55 20 85 824
Dearness Pay 75.187 6 20 24 381
Dearness Allowance 75.317 39 92 11 473

101 33 21 678
Note 24.2 : Provision for Leave Encashment for the year has been made at 1/12th of the
Pay & Allowances, pending Actuarial valuation
Note 24.3 :Earned Leave(EL) encashment disbursed during the year
75.616-EL encashment employees coverd under NDCPS 4 77 38 025
75.617-EL encashment 13 14 79 873
75.618-EL encashment - Retired / Deceased employees 10 29 58 213

Note 24.4 :Liability for pension and gratuity for service up to 31.5.2002 is met by the
Government of Karnataka and liability for the subsequent period arising from 1.6.2002, is met
by the Corporation by contribution to the Trust, based on Actuarial valuation. Contribution to
employees covered under NDCPS applicable to employees who have joined after 1-4-2006
Rs. 128749901
Note 24.5 : Staff Welfare Expenses includes :

Contribution to Labour Welfare Fund 5,46,993
EPF contribution in respect of Contract Employees 48,90,832
Pension, Leave Contribution of employees of other 6,82,004
department deputed to KPTCL
Note 24.6 : Terminal Benefits - FBF represents amount borne by the Company in terms of
the Scheme on employees death while in service.

NOTE : 25 REPAIRS AND MAINTENANCE
(Amount in Rs.)
Sl. Account
No. Code
Plant and
74.1 59 17 84 948 48 80 89 989
Machinery
Buildings 74.2 14 23 58 353 15 25 88 317
Civil Works 74.3 4 26 92 006 2 44 52 787
Lines, Cable Net

74.5 9 39 01 478 7 53 38 370
Work Etc.
Vehicles 74.6 50 16 846 45 05 933
Furniture and
74.7 1 94 143 1 55 579
Fixtures
Office Equipments. 74.8 34 04 022 29 45 572
Sub Total 87 93 51 796 74 80 76 547
Less : Expenses
shared by 74.910 -2 17 35 844 -3 78 79 531
ESCOMS
Expenses
74.900 - 11 38 743 - 11 07 480
Capitalised
TOTAL 85 64 77 209 70 90 89 536

NOTE : 26 ADMINISTRATION AND GENERAL EXPENSES
(Amount in Rs.)
Sl. Account
No. Code
Administration
Expenses
1 Rent 76.101 45 50 814 56 67 926
2 Rates & Taxes 76.102 2 22 17 668 1 49 31 001

3 Expenses incurred 76.103 2 28 84 788 1 98 06 375
towards security
arrangements
4 Pagers cellular phones 76.111 + 2 11 64 231 2 11 07 310
E-mail, Telephone, 76.112
Trunk call, Telegrams
and Telex Charges
5 Postage 76.113, 1 45 61 508 1 36 87 580
76.114
6 Air net, Internet & 76.116 2 71 68 860 1 99 98 937

Broadband Charges
7 Legal Charges 76.121 93 11 915 87 88 722
8 Audit Fees 76.122 9 85 053 13 79 950
9 Consultancy charges 76.123 20 83 271 13 91 416
10 Technical Fees 76.124 3 59 657 44 500

11 Other Professional 76.125 + 4 14 22 208 3 95 16 979
Charges 76.126 +
76.127 +
76.128 +
76.129
12 Conveyance & Travel 76.131 To 13 96 09 595 11 47 67 044
expenses 76.135 &
76.137 to
76.139
13 Vehicle running 76.136 3 01 23 832 2 74 18 575
expenses
Sub - Total 33 64 43 400 28 85 06 315

NOTE : 26 ADMINISTRATION AND GENERAL EXPENSES
(Amount in Rs.)
Sl. Account
No. Code
OTHER EXPENSES
14 Fees & Subscriptions 76.151 1 42 15 896 1 49 19 903

15 Books, periodicals and 76.152 3 56 663 3 77 528
dairies
16 Printing & Stationery 76.153 1 28 53 900 1 09 25 078

17 Advertisement 76.155 2 51 32 416 2 18 37 058
Expenses
18 Computer stationary 76.156 38 51 332 28 73 298
and floppies
19 Electricity Charges 76.158 3 12 83 567 2 98 80 817
20 Water Charges 76.160 48 27 083 29 14 198
21 Entertainment 76.162 1 70 816 1 76 371

22 Contributions to 76.166 1 71 149
Workers wellfare cess
23 Miscellaneous 76.190 + 2 00 53 264 1 06 77 877
expenses 76.191 +
76.192
24 Freight & other material 76.201 25 46 972 52 25 000
related expenses To
76.282
Sub - Total 11 54 63 058 9 98 07 128
Less : Expenses 76.910 -3 73 15 501 -4 06 98 208
shared by ESCOMS
Expenses Capitalised 76.900 -4 49 92 822 -3 68 70 808

TOTAL 36 95 98 135 31 07 44 427

Note 26.1:
a) Miscellaneous Expenses includes Stamp duty of Rs.71,65,700/- in connection with

enhancement of Authorised Capital (Rs. 50,01,000/-) and further issue of Shares
Rs. 21,64,700/-
b) Miscellaneous Expenses includes Sitting fees paid to Directors
2011-12 2010-11
21 000 19 500
Note 26.2 : Break up of Audit Fees
2011-12 2010-11
(a) Statutory Auditor
Statutory Audit Fee 6 75 000 6 75 000
Tax Audit Fee 1 25 000 1 25 000

Arrears 1 903 3 47 800
(b) Cost Audit Fee 75 000 75 000
Service Tax 1 08 150 1 57 150
Total 9 85 053 13 79 950
Note 26.3 :Vehicle running expenses includes insurance on vehicles. Other Assets of the
Corporation are not insured.

NOTE : 27 - FINANCE COSTS
(Amount in Rs.)
Sl. Account
No. Code
Interest
Loan from REC 78.540 2 12 39 352 3 46 37 059

Rationalised REC 78.541 5 37 006 9 90 963
Loans
Loan from ICICI Ltd. 78.543 77 16 763
APDP works 78.544 83 59 826

Short term Loan 78.563 53 88 02 444 65 79 55 841
obtained from
Commercial Banks/
Financial institutions
Loans from UCO 78.564 57 78 71 787 47 52 26 615
Bank
Loans from Vijaya 78.569 128 76 38 025 63 45 20 244
Bank
Loans drawn from 78.573 5 91 18 920
South Indian Bank
Loans drawn from 78.574 21 91 77 310 20 19 01 837
PNB
Loans drawn from 78.575 6 99 11 749 6 52 73 030
OBC
Loans drawn from 78.576 20 06 48 622 17 28 41 604
Corporation Bank
Loans drawn from 78.577 14 04 70 970 14 24 92 344
Bank of Maharashtra
Loans drawn from 78.578 35 92 88 565 32 49 87 344
Bank of India
Loan from Bank of 78.579 13 69 68 405 16 14 70 018
Baroda
Loan from HDFC 78.582 1 84 692 4 26 169

Loan from PFC 78.584 138 09 16 002 188 73 46 160
Capital Liability 78.590 1 83 969
Loan from Indian 78.591 33 97 86 418 17 54 87 972
Bank

NOTE : 27 - FINANCE COSTS
(Amount in Rs.)
Sl. Account
No. Code
Loan from Bank of 78.592 71 23 288 9 99 90 696
Rajasthan
Loan from Punjab 78.593 8 60 25 281 82 69 684
and Sindh Bank
Loan from Canara 78.594 54 98 13 701 4 94 65 444
Bank
Borrowings for 78.7 400 2 242
Working Capital
592 41 20 780 516 09 47 981

Other Borrowing
Costs
Guarantee 13 65 675 19 43 129
Commission
Other Charges for 78.820 1 66 553
raising Finance To
78.890
15 32 228 19 43 129
Sub-Total 592 56 53 008 516 28 91 110
Less : Interest and 78.9 -95 74 36 387 -95 74 36 387 -87 38 76 118 -87 38 76 118
finance charges
capitalised
TOTAL 496 82 16 621 428 90 14 992

NOTE : 28 DEPRECIATION AND AMORTIZATION
(Amount in Rs.)
Sl. Account
No. Code
Amortisation of Lease
77.110 8 47 289 8 47 289 9 25 641 9 25 641
Hold Assets
Depreciation on
77.120 12 15 08 752 10 89 34 761
Buildings
Depreciation on
77.130 2 06 34 061 1 67 22 456
Hydraulic Works
Depreciation on Civil
77.140 1 12 73 952 1 03 59 678
Works
Depreciation on Plant
77.150 266 98 92 383 245 34 00 054
and Machinery
Depreciation on lines,
77.160 165 41 37 582 146 68 58 999
cable, network etc.,
Depreciation on
77.170 24 37 937 16 91 014
Vehicles
Depreciation on
77.180 63 57 111 72 10 612
furniture, fixtures
Depreciation on Office
77.190 13 70 940 12 57 662
equipments
Sub-total 448 76 12 718 406 64 35 236
Depreciation on
77.801
Intangible Assets
77.151,
Depreciation on
77.161,
Released Assets and
77171, 1 14 58 650 1 14 58 650 44 94 057 44 94 057
Released Assets
77.181,
issued to Repairs
77.191
Sub-Total 449 99 18 657 407 18 54 934
Less : Depreciation
77.900 - 45 91 662 - 19 65 644
Capitalised
TOTAL 449 53 26 995 406 98 89 290

NOTE : 29 OTHERS
(Amount in Rs.)
Sl. Account Current Year
Particulars Previous Year 2010-11
No. Code 2011-12
Asset 77.5 26 19 596 25 05 972
Decommissioning
Costs
Small & Low value 77.600 5 50 788 2 00 899
items Written off
Computer software 77.611 6 26 806 12 79 736

Losses relating to 77.7 15 60 171 18 30 417
Fixed Assets
Interest on delayed 78.101 42 51 709
compensation
Interest on 78.854 17 34 789 10 31 648
Pensioners/ Family
Pensioners benefit /
Security Fund
Interest on belated 80.108 108 21 21 370 108 21 21 370
payment for power
purchase
Other Bank Charges 78.8 13 34 605 11 28 879
Material Cost Variance 79.110 32 60 220 - 435

Research & 79.2 2 49 132 3 11 349
Development
Expenses
Miscellaneous losses 79.5 & 8 68 07 985 1 11 52 401
and Write offs 79.7
TOTAL 118 51 17 171 110 15 62 236
Note 29.1 : Miscellaneous losses and Write offs includes :

1. Provision for Loss on obsolescence of Stores etc., in Stock 5 65 80 627 0
2. Sundry Debit balance written off 2 62 95 130 0

NOTE : 30 PRIOR PERIOD (CREDITS) / CHARGES
(Amount in Rs.)
Sl. Account Previous Year
Particulars Current Year 2011-12
No. Code 2010-11
Income relating to
A)
previous years :
Excess provision for 65.600 1 50 02 758 5 05 01 086
Depreciation in prior
periods
Other Excess provision in 65.800 59 53 942 77 291
prior periods
Other Income relating to 65.900 13 93 34 088 41 870
prior periods
Sub - Total 16 02 90 788 5 06 20 247
B) Prior Period Expenses /
losses :
Operating Expenses of 83.300 0 77957
previous years.
Employee costs relating 83.500 233651 292999
to previous years
Depreciation under 83.600 209117617 222316285
provided in previous
years.
Administrative Expenses 83.820, 514650 9113
- previous years. 83.821
Other Expenses relating 83.850 1063000 227153
to prior periods
Sub - Total 210928918 222923507

Net Prior Period credits/ -5 06 38 130 -17 23 03 260
(charges) (A-B)

NOTE : 31 Exceptional Items
(Amount in Rs.)
Sl. Account Previous Year
Particulars Current Year 2011-12
No. Code 2010-11
Gain on Sale of Land 62.400 5 06 22 898
TOTAL 5 06 22 898
NOTE : 32 Extraordinary Items

(Amount in Rs.)
Particulars
No. Code 2011-12 2010-11
Extraordinary Credits
(including susidies against
63.200
loss on account of flood,
fire,cyclone, etc.,)
TOTAL
Less Extraordinary debits

(Losses on account of 79.8
flood,cyclone,fire etc.)
TOTAL
Net extraordinary items

NOTE : 33 Current Tax
(Amount in Rs.)
Particulars
No. Code 2011-12 2010-11
Income Tax - Current year 81.100 1 74 18 570 31 79 781

Short Provision for Income
83.810 27 52 719 2 01 71 289 44 76 140 76 55 921
Tax - Previous Year
TOTAL 2 01 71 289 76 55 921
NOTE: 34 DEFERRED TAX

(Amount in Rs.)
Particulars Account Code
No. 2011-12 2010-11
Deferred Tax 81.201
TOTAL

2011-12
Note 35 - Significant Accounting Policies
35.1 Basis of preparation
a. Financial statements have been prepared under historical cost convention

on a going concern and accrual basis except for accounting on cash basis
for Grants and Subsidies from the Government; and comply materially with
the mandatory Accounting Standards issued by The Institute of Chartered
Accountants of India(ICAI), Generally Accepted Accounting Principles (GAAP),
Provisions of the Electricity Act, 2003 and Electricity (Supply) Annual Accounts
Rules(ESAAR), 1985 and relevant provisions of the Companies Act, 1956 to
the extent that they are not inconsistent with the provisions of Electricity Act,
2003 and Electricity (Supply) Annual Accounts Rules (ESAAR), 1985.
b. In the light of modifications to Schedule VI of Companies Act, 1956, with

effect from 01/04/2011, necessary changes have been incorporated in the
presentation of Balance Sheet, Profit & loss Account and Notes on Accounts to
suit the requirement of Revised Schedule VI of Companies Act, 1956.
c. The Assets are classified as Current Assets and Non-Current Assets and
Liabilities are classified as Current Liabilities and Non-Current Liabilities
assuming the operating cycle of the corporation as duration of 12 months.
35.2 Revenue Recognition
a. Revenue from Transmission is recognized on accrual basis at the tariff as

notified by Karnataka Electricity Regulatory Commission (KERC) from time to
time in its Multi Year Tariff (MYT) which is arrived on the basis of estimated
Return on Equity and relevant aspects.
b. Revenue from Inter State Wheeling Charges is recognized on accrual basis

based on Regional Energy Account (REA) published by Southern Region
Power Committee (SRPC).
c. Revenue from Other Sources is also accounted on accrual basis.

35.3 Fixed Assets
a. Fixed assets are stated at cost including expenses related to acquisition,

construction and installation less accumulated depreciation and impairment
loss.
b. Establishment and other administration expenditure of Works Circles and Major

Works Divisions are allocated to the capital works handled by the respective
Divisions and form part of the cost of assets.
c. Assets put up by third parties, which vest in the Corporation under Regulation
for Condition of Supply of Electricity issued by the KERC, are incorporated in
the books at the cost estimate approved by the Corporation in the absence of
actual cost.
d. Land cost includes acquisition cost, including enhanced compensation paid as

awarded by the Courts, Compensation paid for afforestation and social forestry
for the project affected local people/families.
e. Expenditure on replacement of assets/part of asset with independent existence

are capitalised irrespective of the cost. The Original Cost and Accumulated
Depreciation thereon in respect of replaced assets are removed from
Accounts.
35.4 Depreciation
a. Depreciation is calculated on straight line method:
i At the rates notified by CERC and adopted by KERC from time to time;
i In respect of assets for which rates are not specified in the Electricity Supply
Act, 2003, at the rates specified under Schedule XIV of the Companies Act,
1956.
b. Assets are depreciated to the extent of 90% of the cost of the asset and 10% is
retained as residual value.
c. For additions to assets from 1.4.2007, depreciation is provided from the beginning
of the month of addition. For additions to assets up to 31.3.2007, depreciation
has been provided from the year succeeding the year of addition.
d. Depreciation is charged upto the previous month in which asset is discarded/

dismantled.

e. Individual assets costing up to Rs. 500/- are fully depreciated in the year in
which they are put to use.
f. Where the carrying amount of any fixed asset has undergone a change in
accordance with the policy for foreign currency transactions, depreciation on
the unamortized depreciable asset is spread over the useful life of the asset.
g. Depreciation on structures and other assets put up on leasehold properties are

depreciated at normal rates without linking it to the lease period.
h. Depreciation on released assets(Assets not in use) and released assets

issued for repairs has been charged at normal rates on Written Down Value of
Assets.
i. Depreciation on deposit contribution, consumer built and grant assets are

charged to revenue and not set off against capital reserve.
35.5 Accounting for Grants
a) Capital grants/grants related to specific assets are shown under Capital Reserve
and not reduced from the cost of the asset.
b) Revenue and untied grants are treated as income.
35.6 Reserves & Surplus
Capital Reserve
Deposit Contribution Works
a) Works executed/assets created out of contributions received from the third

parties vest in the Corporation under Regulation for Condition of Supply of
Electricity by the KERC, and they are incorporated as assets in the books at
the full value without reducing the contribution from the cost of the asset. Such
Contributions received from third parties towards works/assets are treated as
capital reserve.
35.7 Investments
a) Long term investments are carried at cost. Provision is made for diminution,
other than temporary, in the value of such investments.
b) Current investments are valued at lower of cost and fair market value.
35.8 Valuation of Inventories
a) Fast moving Stores and spares are valued at standard rates, determined by the
Corporation from time to time, in respect of items for which standard rates are

fixed. Other items are valued at lower of cost, determined on weighted average
method, or net realizable value. The difference between actual cost and the
Standard rate is debited or credited to Material Cost Variance Account, as the
case may be. The balance under this account is transferred to Material Cost
Variance Reserve. The debit balance under Material Cost Variance Reserve is
debited to P&L Account.
35.9 Borrowing Costs
a) Borrowing costs attributable to the construction/acquisition of qualifying assets

are capitalized as a part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial time to get ready for intended use.
b) Nonspecific borrowing costs for acquisition of qualifying assets are apportioned

to individual assets in the ratio of expenditure on assets to such borrowing
costs, quantum of borrowing costs being determined on the basis of weighted
average cost of the borrowings outstanding during the period. Other borrowing
costs are recognized in the period which they are incurred.
35.10 Employee Benefits
a) Expenditure towards defined benefit scheme Gratuity and Pension which covers
employees who have joined service upto 31.03.2006 is provided on the basis
of Actuarial valuation using Projected Unit Credit Method (PUCM) in conformity
with Accounting Standard - 15. Actuarial gains or losses are recognized in the
Profit and Loss Account.
b) Employees who have joined the Corporation on or after 01.04.2006 are covered
under New Defined Contributory Pension Scheme (NDCPS) and Companys
Contribution at fixed percentage of salary is ascertained and paid/provided
accordingly.
c) Long term benefit Leave Encashment is ascertained on the basis of Actuarial

valuation using Projected Unit Credit Method (PUCM) and provided at the end
of each Financial Year as required by Accounting Standard 15. Actuarial gains
or losses are recognized in the Profit and Loss Account.
35.11 Accounting for Taxes on Income
a) Provision for Current Tax is made in accordance with the provisions of the
Income Tax Act, 1961.

b) Deferred tax on account of timing difference between taxable and accounting
income is provided using the tax rates and tax laws enacted or substantially
enacted by the Balance Sheet date.
c) Deferred Tax is recognized, being the difference between taxable income and
accounting income that originate in one period and are capable of reversal in
one or more subsequent periods. Deferred tax assets are recognized, if there
is virtual certainty of realization of such assets.
35.12 Foreign Currency Transactions
a) Foreign currency transactions are initially recorded at the exchange rate

prevailing on the date of the transaction.
b) Foreign Currency monetary assets and liabilities are translated at the year end
exchange rates. Exchange differences related to liabilities for acquisition of
fixed assets from outside India are adjusted in the carrying cost of assets.
Exchange differences arising on other transactions are recognized as income
or expenditure in the year in which it arises.
35.13 Impairment of Assets
a) Carrying amount of assets is reviewed at each balance sheet date to determine

whether there is any impairment.
b) An impairment loss is recognized, whenever the carrying amount of such assets

exceed the recoverable amount. Reversal of impairment loss is recognized as
income in the profit and loss account.
35.14 Amortisation of Intangible Assets
a) Cost of acquisition of Custom built application software is recognized as an

intangible asset and amortised on straight line method over a period of three
years, commencing from the year of purchase.
35.15 Amortisation of lease assets
a) Lease payments made upfront in respect of leased assets are amortized in

equal installments over the lease period of the asset.
b) Annual lease rent payments are charged to revenue.
c) Cost of improvements made to leased assets is amortized in equal installments

over remaining lease period of the asset.

Note 36 - Notes on Accounts
36.1 Contingent Liabilities and Commitments (to the extent not provided for) :
(Rs. In Crores)
Sl. Current Previous

Particulars
No. Year Year
Contingent Liabilities
(i)
Claims against the company not acknowledged as debts:
Claims in respect of Land Acquisition Cases 5.13 9.05

TDS in respect of the Assessment years 2005-06 to 2007- 4.54 4.54
08, disputed by the Company and the matter before the
Honble High Court of Karnataka
Price Variation Claims from Contractors / Suppliers 4.12

Others 18.38 18.46
(ii) Commitments
Estimated Amount of contracts remaining to be executed 4748.00 3631.39

on Capital Account and not provided for
36.2 Value of Imports calculated on CIF basis:

(Rs. In Crores)

Particulars
No. Year Year
i Raw materials, spare parts and capital goods NIL NIL
ii Capital goods NIL NIL
36.3 Expenditure in foreign currency:

Particulars
No. Year Year
i Expenditure reimbursed on foreign travel Rs.19,13,034/- Rs. 14,95,982/-

36.4 Value of indigenous and imported stores Spares and components consumed:
Sl. No. Particulars Current Year Previous Year

i. Indigenous Materials Not ascertainable Not ascertainable
ii Imported Materials Not ascertainable Not ascertainable
36.5 Quantitative details of Transmission and Loss of Energy:
(In MUs)
Sl. Current Year Previous

Particulars
No. (Provisional) Year
1 Total Energy handled 56890.574 50516.39

2 Total Energy Transmitted 56890.574 50516.39
3 Transmission Loss in respect of Energy Transmitted 2580.371 2219.34
Net Transmission to ESCOMS & Hukkeri society
4 54310.203 48297.13
during the year (2-3)
Total units accounted as Transmitted to ESCOMS &
5 54310.203 48297.13
Hukkeri society during the year
6 Total Transmission loss 2580.371 2219.34
Percentage of Transmission Loss on handled Energy
7 4.536% 4.39%
(6/1 X 100)
36.6 Confirmation of balances
a) Confirmation of balances have been obtained only for borrowings from Banks
and Financial Institutions and Bank balances.
b) Balance with ESCOMS
Receivables and Payables in the names of ESCOMs (other than relating to

Sundry Debtors for Transmission of Power), as detailed below, are subject to
reconciliation and confirmation:
Name of the ESCOM Receivable Payable

BESCOM 6,98,63,099 42,62,11,790
MESCOM 10,45,19,155 10,38,13,158
HESCOM 15,32,59,656 13,11,07,778
GESCOM 27,63,48,571 16,33,344
CESCOM 5,39,43,059 3,28,40,556

36.7 Segment Reporting
As the Corporation is engaged only in the business of power transmission within the
state of Karnataka, there are no reportable segments as per AS-17 on Segment
Reporting.
36.8 Property Tax
Provision has not been made towards Property Tax including vacant lands and same
shall be accounted, as and when payment is made. Impact on financial statements is
not ascertainable.
36.9 Related party Disclosures
Related Party Transactions:
Key Managerial Personnel As per Notification issued by GoK.
Sl.No. Name Designation
1 Smt. G. Latha Krishna Rao (up to 18/05/2011) Managing Director

2 Sri P.Ravikumar (from 18/05/2011) Managing Director
3 Dr. Aditi Raja Director (Finance)
4 Sri S. Pratap Kumar (up to 19/01/2012) Director (Transmission)
5 Sri S. Sumanth (from 19/01/2012) Director (Transmission)
6 Sri V. Yashwanth (up to 08/01/2012) Director (Admn & H R)
7 Dr. Muddumohan (From 30/01/2012) Director (Admn & H R)
Managerial remuneration paid or payable to Key Managerial Personnel:
(Amount in Rupees)
Sl. No. Particulars Current Year Previous Year

i. Salary and Allowance 49,90,470 40,65,186
ii Exgratia 11,754 14,000

iii Medical Expenses 25,619 3,66,089
Pension & Leave Contribution remitted to
iv 3,73,197 3,67,824
Government
Pension & gratuity Contribution payable to
v 3,68,633 3,36,208
P&G Trust
vi Leave Encashment 2,67,818 -
TOTAL 60,37,491 51,49,307

36.10 Earning Per Share (EPS)

Particulars
No. (2011-12) (2010-11)
i. Basic
A. Net Profit for the year 7,66,59,142 86,92,568
B. Weighted Average Number of Equity Shares 77,90,397 69,03,225
outstanding during the Year
C. EPS 9.84 1.26
ii Diluted *
A. Net Profit for the year 7,66,59,142 86,92,568
B. Weighted Average Number of Equity Shares
outstanding during the Year 1,58,89,837 1,50,62,138
C. EPS 4.82 0.58
* After considering Potential Equity Share to be issued against Equity Infusion (Note 3).
36.11 General
a) Paisa has been rounded off to the nearest rupee.
b) Previous year figures have been regrouped / recast wherever necessary for purposes
of Comparability.
c) Current Years Figures of Assets and liabilities have been grouped as

Non- Current and Current as required by Revised Schedule VI effective from 01.04.2011.
In certain cases, as required information was not available in respect of previous years,
the corresponding figures for the previous year, may not be strictly comparable.
Signature to Note 1 to 36
Sd/
(C.SREENIVASAN)
Financial Adviser(A&R)
Sd/ Sd/ Sd/

For RAO & SWAMI


KARNATAKA POWER TRANSMISSION CORPORATION LIMITED
Cash Flow Statement Annexed to the Balance Sheet for the period
April 2011 - March 2012
Particulars Amount in Rs Amount in Rs
A CASH FLOW FROM OPERATING ACTIVITIES:
Net Profit before tax as per Profit & Loss Account 8 70 59 081
Adjustments for :
Depreciation (net) 449 53 26 995
Finance and Other Charges 496 82 16 621
Changes in Material cost variance Reserves - 6 74 593
Other Income -16 82 54 342
Capital Profit -5 06 22 898
Contributions, grants & subsidies towards cost of capital
67 20 38 287
assets
Operating Profit before working capital changes 933 10 50 863
Adjustments for :
Changes in Stores & spares -2 11 95 763
Assets not in use
Changes in Sundry Debtors 41 85 16 276
Changes in Loans & Advances 73 37 95 507
Changes in Other Receivables 272 38 01 863
Changes in Current liabilities & provisions -445 67 02 992
Cash generated from Operations 872 92 65 753
Income Tax -1 03 99 939
Net cash inflow from Operating Activities 871 88 65 814
B CASH FLOW FROM INVESTMENT ACTIVITIES
Changes in Fixed Assets (Net of Assets sales and losses)* -876 04 01 802
Changes in Capital Work in Progress -17 80 19 472
Other Income 16 82 54 342
Net cash inflow from Investment Activities -877 01 66 932
C CASH FLOW FROM FINANCING ACTIVITIES:
Changes in Share Capital/ Equity Infusion 100 00 00 000
Grant Received 2 58 00 000
Changes in Secured Loans 11 81 72 540
Changes in Unsecured Loans 168 32 38 834
Changes in Capital Reserves 5 06 22 898
Finance and other Charges -496 82 16 621
Net Cash used in financing activities -214 10 05 247
Net Change in Cash and Cash equivalents (A+B+C) -219 23 06 365
Add:Opening Cash and Cash Equivalents as on 1.4.2011 393 04 24 985
Closing Cash and Cash Equivalents as on 31.3.2012 173 81 18 620
Sd/
(C.SREENIVASAN)
Financial Adviser(A&R)
Sd/ Sd/ Sd/
For RAO & SWAMI

STATEMENT SHOWING THE DETAILS OF BORROWING FOR
THE FINANCIAL YEAR 2011-12
A/c OB as on CB as on
Name of the Institution Receipts Repayments
Code 01/04/2011 31/03/2012
1 2 3 4 5 6
53.300 REC 166344547 19145721 147198826
53.324 Short term Loans 5220000000 22000000000 20220000000 7000000000
53.325 UCO Bank 5030000000 5030000000

53.330 Vijaya Bank 10254173003 2000000000 358142000 11896031003
53.336 APDRP-REC 65829525 10971588 54857937
53.900 HDFC 2163941 1905268 258673

53.960 PFC 12696028126 1595404059 11100624067
53.302 REC-Rationalised loans 7937339 4244154 3693185
53.346 Punjab National Bank 2242500000 345000000 1897500000
53.347 Oriental Bank of Commerce 675000000 100000000 575000000
53.353 Corporation Bank 2225000000 100000000 2125000000
53.354 Bank of Maharashtra 1450000000 200000000 1250000000
53.355 Bank of India 4110400000 444800000 3665600000

53.356 Bank of Baroda 1500000002 333333332 1166666670
53.357 Indian Bank 3000000000 100000000 2900000000
53.358 Bank of Rajasthan 1000000000 1000000000
53.359 Punjab & Sind Bank 350000000 1650000000 2000000000
53.360 Canara Bank 5000000000 5000000000
54.200 State Government Loans 71288661 5940722 65347939
TOTAL 55066665144 25650000000 24838886844 55877778300

STATEMENT SHOWING SECTOR WISE CAPITAL EXPENDITURE FOR 2011-12
WITH AND WITHOUT RELEASED ASSETS ISSUED TO CAPITAL WORKS
CWIP (Amount in Rupees)
Net Capital
Released
Capital Expenditure for
Capital Assets
Expenditure the year 2011-
Account Brief Description of the Expenditure issued
Allocation 12 (deducting
Code Project during the to works
(Sectorwise) Released
year 2011-12 during
(In Crores) Assets issued
2011-12
to Works)
TRANSMISSION LINES AND SUB STATIONS WITH ATTACHED CIVIL WORKS
14.110 Transmission lines (GP) 1716862541.44 18273378.00 1698589163.44
14.113 Transmission lines (PFC) 1180517367.33 7843.00 1180509524.33

Transmission lines
14.116 31474724.50 .00 31474724.50
(Non-Plan)
14.120 Step Down Station-(GP) 2663343131.50 70396320.47 2592946811.03
14.123 Step Down Station-(PFC) 463376504.64 188273.98 463188230.66
14.124 Step Down Station-(ADB) 895870258.00 .00 895870258.00
Step Down Station-

14.126 176591081.75 11096014.06 165495067.69
(Non-Plan)
Sub Total 865.36 7128035609.16 99961829.51 7028073779.65
LOAD DESPATCH AND
COMMUNICATION
Load Despatch &
14.130 94569608.00 94569608.00
Communication
Sub Total 92.00 94569608.00 94569608.00
EXTENSION AND
IMPROVEMENTS
Transmission lines+
14.150 Transformers etc- 504758773.82 36340305.94 468418467.88
Improvements (GP)
Transmission lines+
14.151 Transformers etc- 605503.00 605503.00
Improvements (Non Plan)
Sub Total 103.51 505364276.82 36340305.94 469023970.88

CWIP (Amount in Rupees)
Net Capital
Released
Capital Expenditure for
Capital Assets
Expenditure the year 2011-
Account Brief Description of the Expenditure issued
Allocation 12 (deducting
Code Project during the to works
(Sectorwise) Released
year 2011-12 during
(In Crores) Assets issued
2011-12
to Works)
PROVIDING NEW TRANSFORMERS IN PLACE OF FAULTY/FAILED DISTRIBUTION
TRANSFORMER
Replacement of Distribution
14.170 transformer with similar 24660027.82 16633252.57 8026775.25
capacities
Sub Total 40.46 24660027.82 16633252.57 8026775.25
RURAL ELECTRIFICATION
REC Plan Schemes-IP:IE
14.200 Scheme of Driniking Water 2556602284.19 .00 2556602284.19
Supply
Sub Total 256.66 2556602284.19 .00 2556602284.19
OTHERS
14.502 Buildings 190792999.00 15397359.00 175395640.00
14.607 Vehicles 27364502.00 .00 27364502.00
14.708 Furniture & Fixtures 965959.53 .00 965959.53
14.809 Office Equipement 19194451.72 38748.50 19155703.22
14.810 Tools & Tackles 7484174.58 3980.00 7480194.58
Mobile Phones/Cellular
14.811 927494.50 927494.50
Phones
Survey and Investigation
14.910 2570727.00 .00 2570727.00
expenses on projects
Sub Total 64.14 249300308.33 15440087.50 233860220.83
TOTAL-A 1422.13 10558532114.32 168375475.52 10390156638.80
Less: Amount initially
accounted by one
accounting unit as Capital
Exprnditure and on
941485636.26 941485636.26
transferred to another
Accounting Unit, same
accounted as Capital
Expenditure
TOTAL-B 94 14 85 636 94 14 85 636
NET CAPITAL
10558532114.32 168375475.52 9448671002.54
EXPENDITURE

DCB STATEMENT FOR THE YEAR 2011-12
(Energy supplied in Mu's & Amount in Rupees)
Transmission
Energy Grand Total,
Opening charges Closing
ESCOM Supplied (OB+Current Collection
Balance (Current year Balance
(in Mu's) year)
Demand)
BESCOM 24613.93 227544368 7467519072 7695063440 7497811128 197252312
MESCOM 4053.35 168049810 1289594544 1457644354 1279882719 177761635
HESCOM 9732.78 1073499604 2903685556 3977185160 3276594703 700590457
GESCOM 6940.43 239826867 2065410960 2305237827 1836413349 468824478
CESCO 5570.93 626017125 1654617312 2280634437 1898964033 381670404
Hukkeri 211.74 227354 44830370 45057724 45057724 0
INTER STATE 2638440 2638440 2638440
Delayed payment
26295130 26295130 26295130 0
charges
Grand Total 51123.15 2364098698 15425657814 17789756512 15861018786 1928737726

******
Govt. Press, Vikasa Soudha Unit, Bangalore. W.D. 57 / P5

KPTCL Annual Report Highlights

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Karnataka Power Transmission Corporation Limited

1. Directors Report ................................................ 4

2. Comments of the C & AG of India ................... 45

3. Auditors Report and Replies .......................... 46

4. Balance Sheet ................................................... 78

5. Profit & Loss Account ...................................... 80

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 2

List of Directors (As on the date of AGM)

Sl.No. Name Particulars

3 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

The Board of Directors of Karnataka Power Transmission Corporation Limited (KPTCL)

Sl. No. Particulars 2009-10 2010-11 2011-12

Financial Institutions & Banks 519104.01 549953.76 523350.49

Cash Credit from Banks 0 0

Other Funds 34122.82 37491.00

Other long term, Other Current

e) Gross Block 780859.28 902550.99 995921.43

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 4

Percentage of Profit before tax to:

a) Sales 0.64 0.13 0.52

c) Capital Employed 0.08 0.02 0.16

5 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

c) Capital Employed 0.12 0.01 0.14

ADDITION/CHANGES TO THE EXISTING SIGNIFICANT ACCOUNTING POLICIES

ii) Revenue Recognition:

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 6

c) Long term benefit Leave Encashment is

iv) Depreciation on Transformers and other Assets issued for repairs:

PERFORMANCE DURING LAST THREE YEARS

Year 2009-10 2010-11 2011-12

7 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

Particulars As at 31.03.2011 As at 31.03.2012

SOURCE WISE INSTALLED GENERATION CAPACITY AS ON 31-03-2012:

IPPs & Others 708

KPTCL STATIONS & TRANSMISSION LINES AS ON 31.03.2012:

Voltage Number of Transmission

66kV 542 9737.70

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 8

ESCOM WISE INSTALLED TRANSMISSION CAPACITY-

Transformers Number of Sub- Transmission

ENERGY & DEMAND FORECAST:

Year Energy in MUs Demand in MWs

DETAILS OF NEW STATIONS AND TRANSMISSION LINES COMMISSIONED AND

9 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

Sl. Name of the MVA Total Voltage Date of

Bangalore Transmission Zone

2 C B pura Pathapalya 1 X 12.5 12.50 66/11 KV 30-03-2012

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 10

2 Shimoga Chandragutti 1X10 10.00 110/11 KV 17-10-2011

b. Zone-wise details of Transmission Lines Commissioned during the year under

BANGALORE TRANSMISSION ZONE

11 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

66KV SC line tapping from

Karnataka Power Transmission Corporation Limited, Annual Report 2011-12 12

Const. of 110KV DC line from

13 Karnataka Power Transmission Corporation Limited, Annual Report 2011-12

110 KV SC line from 110 KV

a) Const. of 110KV link line

Const. of 110KV LILO line on DC

110KV SC line tapping from existing

HASSAN TRANSMISSION ZONE

Navunda_Line 110 KV SC tap line on