SJVN Ltd Management Discussions.

1. Industry Overview / Industry Structure and Developments

All India installed power generation capacity as on 31.03.2020 was 3,70,106.46 MW. A capacity addition of 12,186.14 MW was targeted during the year 2019-20 comprising 10,296.15 MW of thermal and 1189.99 MW of hydro power & capacity addition of 5745 MW comprising 5445 MW of thermal and 300 MW of hydro power stations was achieved up to 29.02.2020.

Above industry scenario indicates that there is ample opportunity for consistent growth of business in hydro, renewable and thermal energy sector in the times to come with growth in demand. Company is developing 1320 MW super-critical thermal power project at Chausa near Buxar in Bihar, 900 MW Arun-III HEP in Nepal and 60 MW Naitwar Mori HEP in Uttarakhand. Company also commissioned 50 MW Sadla Wind Power Project in Gujarat.

As regards hydro potential, India has an estimated potential of about 1,50,000 MW out of which only about 45699 MW (as on 31.03.2020) has been commissioned. The bulk of the unharnessed potential is located in the hill states of Himachal, Uttarakhand, Arunachal Pradesh, J&K and Sikkim. The above industry scenario signifies that there is ample opportunity for consistent growth of business in hydro sector in near future.

2. SWOT Analysis


SJVN has the following strengths:

SJVN has gained wide experience and expertise in development of large hydro power projects from concept to commissioning including operation & maintenance and management of silt during project operation. SJVN has State of art hard coating facility installed at project site and is being operated in-house.

SJVN has in house capability for complete design of Mega hydro power projects, large value Contract award, Contract and project management.

SJVN has efficient plant operations by minimizing the down time of machines there by maximizing the Plant Availability Factor.

SJVN has stable revenue stream through long term power purchase agreements with state electricity boards and distribution licensees. The allocation of power from its power station is made by the Ministry of Power, Government of India.

Historical financial performance and steady cash flows over the years make SJVN believe that existing operations are capable of funding the equity contribution portion for our existing pipeline of projects.

SJVN is lean / thin organization - high manpower productivity in terms of profit per employee.

SJVN has a competent and committed workforce. SJVN fully recognize that the contribution of its employees is integral to the achievement of SJVNs ambitious plans and have thus adopted an organizational philosophy which acknowledges and rewards their contributions.

SJVN has effective implementation of National R&R policies and excellence in CSR activities.

SJVN has dynamic leadership & effective Corporate Governance.


The unharnessed hydro potential of 1,04,300.78 MW in India (as on 31.03.2020) primarily located in the hill states of Himachal, Uttarakhand, Arunachal Pradesh, J&K and Sikkim. Huge untapped hydro potential of neighbouring countries.

SJVN is diversifying into alternate energy sources such as Wind & Solar Energy and Power Transmission. SJVN is constantly striving to expand its base both in National and International arena.


NJHPS and RHPS are cascade schemes and operating in tandem. Any difficulties faced in the operation of NJHPS will have direct consequences on power generation of RHPS.

Inadequate power to incur expenditure on pre-construction activities and business developments / investment before establishing project viability.


Most of the hydro-electric projects are located in remote locations and are prone to natural calamities such as cloud burst, land slide, road block etc. These natural calamities also contribute to delays, unforeseen.

Stringent norms and cumbersome procedures for getting environment clearance, forest clearance and clearance from National Board for Wild Life (where ever applicable) delay the commencement of construction of projects.

Inspite of extensive survey and investigations, the probability of geological surprises in various components of hydroelectric projects in young Himalayan ranges pose great technical challenge involving extremely cost intensive and time consuming measures.

Increase in cost of land after introduction of new Land Acquisition Act is making hydro power projects more cost intensive and thus higher tariff.

Tariff for Renewable Energy (Solar and Wind Power Projects) is going down- evacuation & operation of hydro projects is the core strength of SJVN and their viability is becoming difficult due to its higher tariffs.


Measures adopted by SJVN in Operation and Maintenance of 1500 MW

NJHPS and 412 MW RHPS have improved our capability in efficient Operation and Maintenance of Power Stations.


Hydro Power Projects are capital intensive and have long gestation period. The rising cost of Hydro Projects on account of land compensation and delays leads to higher power tariff and has resulted into shift of emphasis from Hydro to cheaper alternate energy sources. Water being a state subject, State Governments are demanding more free power and other incentives, resulting in higher tariff.

Risk Management Policy of SJVN was approved by BOD on September 12, 2013. The Policy has been duly supplemented with separate and comprehensive Risk Management Plans for each project duly approved by the Board.

The main objective of risk management is to identify all the business related activities followed by activity related potential risks followed by identification of various triggers and other factors associated with risks and their mitigation measures to overcome them with minimum effect to business.

The Risk Management Policy has been disclosed on the website of the company and may be accessed at the following web link: final_07_04_2014.pdf


The risk management framework entails formulation of a Risk Matrix to assign the likelihood of occurrence to the assigned risks along with definition of nature of risk viz. controllable, Uncontrollable & partly controllable, suggesting a mitigation mechanism and lead responsibility centre. The risk management policy has a defined Risk Organization Structure with Chief Risk Officer at the helm supported by Risk Controller along with Risk Managers and Risk Officers performing the line functions.

The Risk Management Strategy includes assessment of risk to designate as falling under Avoidance, Transfer, Reduction or Retention with associated action plan.


The Company is mainly engaged in the business of generation of electricity through hydro projects and the tariff for the electricity generation of hydro projects are regulated in terms of the CERC Tariff Regulations. Due to the COVID pandemic, a lockdown was announced by the Government of India effective from 25 March 2020. As per the Government guidelines, power generating units were exempted from the lockdown. Due to the various steps taken by the Company, there has been no significant impact of the pandemic on the generation of electricity.

The Company has considered various internal and external information available up to the date of approval of financial statements in assessing the impact of COVID-19 pandemic on the financial statements for the year ended March 31, 2020.

There will be no impact of lockdown due to Covid 19 pandemic on the companys ability to continue as a going concern.

A detailed financial discussion and analysis is furnished below on the Audited Financial Statements of the company for the fiscal 2020 vis-a-vis fiscal 2019.

Reference to Note(s) in the following paragraphs refers to the Notes to the Standalone financial statements for the financial year 2019-20 placed elsewhere in this report.

Figures of previous years have been regrouped/ rearranged wherever necessary.



Units of Electricity Generated F.Y. 2019-20 F.Y. 2018-19
(Million Units) 9678.15 8435.03
INCOME Rs. in Crore
1. Revenue from Operations 2701.52 2646.38
2. Other income
a) Interest
- On deposits 204.85 264.21
- On advances to employees
& Contractors 9.01 7.17
Others 16.57
Total interest 230.43 271.38
b) Late Payment Surcharge from Beneficiaries 107.29 9.39
c) Others 49.91 (18.16)
Total Income 3089.15 2908.99

The income of the Company comprises of income from sale of electricity, interest & surcharge received from beneficiaries, consultancy, interest earned on investment of surplus funds etc. The gross income for fiscal 2020 is Rs.3089.15 crore as compared to Rs.2908.99 crore in the previous year registering a increase of 6.19% .The increase in gross income is mainly due to increase in revenue from operations by Rs.55.14 crore and receipt of Late Payment Surcharge from Beneficiaries & Liquidated Damages recovered from Contractors by Rs.125.02 crore.


The sale of Hydro Power by the Company is governed by the tariff fixed by the Central Electricity Regulatory Commission (CERC) pursuant to the tariff policy issued by the Govt. of India. The Central Electricity Regulatory Commission (CERC) has notified the Tariff Regulations, 2019 containing inter-alia the terms & conditions for determination of tariff, applicable for a period of five years with effect from 01.04.2019. Tariff is determined with reference to Annual Fixed Charges (AFC) which comprises of Return on Equity (ROE), Depreciation, Interest on Loan, Interest on Working Capital and Operation & Maintenance Expenses. ROE is grossed up with effective income tax rate of the respective financial year so as to recover the income tax incidence. For the purpose of recovery, AFC is bifurcated into two equal parts i.e. Energy Charges and Capacity Charges. Recovery of Energy Charges is dependent upon energy generated and full recovery is ensured when schedule design energy level is achieved. Generation over and above design energy entitles for additional revenue in the form of secondary energy charges. Recovery of capacity charges is dependent on the actual availability of plant for generating power with reference to Normative Annual Plant Availability Factor (NAPAF), which has been fixed at 90% for Nathpa Jhakri Hydro Power Station (NJHPS) and 85% for Rampur Hydro Power Station (RHPS) for the fiscal 2020. Company is entitled to receive incentives for achieving higher Plant Availability Factor against NAPAF.

Revenue from operations also includes:

i. Sale of Wind Power from the project in Maharashtra is regulated as per the Power Purchase Agreement (PPA) signed with Maharashtra State Electricity Development Corporation Limited(MSEDCL).

ii. Sale of wind power from Sadla Wind Power Project in Gujarat is regulated as per the Power Purchase Agreement (PPA) signed with Gujarat Urja Vikas Nigam Limited (GUVNL).

iii. Sale of Solar Power from the project in Gujarat is regulated as per the Power Purchase Agreement (PPA) signed with Gujarat Urja Vikas Nigam Limited (GUVNL).

Revenue from Operations (Note 2.30)


Company sells electricity to bulk customers comprising mainly, Electricity Utilities owned by State Governments and private distribution companies. Sale of electricity is generally based on long term Power Purchase Agreements (PPAs) entered with such Utilities. Sales for the financial year 2019-20 have been provisionally recognized at Rs.2413.70 crore as compared to Rs.2630.34 crore during the financial year 2018- 19.

Consequent to the final tariff orders for the period 2004-09, 2009-14 and 2014-19 in respect of Nathpa Jhakri Hydro Power Station (NJHPS) and for the period 2014-19 in respect of Rampur Hydro Power Station(RHPS), energy sales include net amount of Rs.8.52 crore (previous year Rs.243.00 crore) pertaining to earlier years.

Pending approval of tariff by CERC, sales for the year in respect of hydro power stations have been recognized in accordance with the tariff approved and applicable as on 31.03.2019 as provided in the CERC (Terms and Conditions of Tariff) regulations 2019.

Sales includes an amount of Rs.192.80 crore (previous year Rs.172.09 crore) on account of capacity incentive in respect of hydro power stations mainly due to achievement of higher plant availability factor as compared to Normative Plant Availability Factor. Gross Annual Generation for the current year was also higher as compared to previous year due to increase in water discharge.

As per the directions of the Govt., Company has approved a consolidated one-time rebate of Rs.57.82 crore to the DISCOMs and Power Departments of States / Union Territories for the lockdown period. Out of this an amount of Rs.6.09 crore pertains to current financial year and has been adjusted from the revenue from sales and balance amount of Rs.51.73 crore will be adjusted during the financial year 2020-21.

The details of Generation & Plant Availability Factor (PAF) are given below:

Particulars NJHPS RHPS
2019-20 2018-19 2019-20 2018-19
Design Energy (MUs) 6612 6612 1878 1878
Gross Generation (MUs) 7445.43 6507.13 2098.03 1828.76
Normative PAF (%) 90 90 85 82
Actual PAF (%) 105.48 103.51 104.88 103.26

Sales also includes Unscheduled Interchange (UI) Charges amounting to Rs. 16.55 crore (previous year Rs.39.17 crore) for the positive deviation in generation with respect to schedule, (payable or receivable) at rates notified by CERC from time to time.

Revenue from Wind / Solar Power Projects:

During the year, there is increase in installed capacity by 12 MW on commissioning of remaining 6 units of Sadla Wind power project out of total 25 units in the state of Gujarat.

The revenue from sale of Renewal Projects (Wind and Solar Power) has increased by Rs. 5.55 crore due to increase in generation of Wind and Solar Power by 35.55 MUs (current year 134.69 MUs) (Previous year: 99.14 MUs).


Revenue from operations also includes an amount of Rs. 11.22 crore (Previous Year Rs. 1.72 crore) from consultancy. This is on account of consultancy provided to SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC), Nepal, a subsidiary company and Teesta Urja Limited.

Other Operating Revenue :

Other Operating Revenue mainly includes Interest from beneficiaries. CERC regulations provide that if the tariff already recovered is less than the tariff approved by the CERC, the company shall recover the balance amount along with interest from the beneficiaries. Accordingly the interest recoverable from the beneficiaries amounting to Rs. 275.57 crore (previous year: Rs. 0.03 crore) has been recognised after the finalisation of tariff by CERC.

Revenue from operations for F.Y. 2019-20 constitutes 87.45% of total income as compared to 90.97% for F.Y. 2018-19.

Other Income (Note 2.31)

Other income mainly comprises interest income on short term deposits with banks, interest from employees and contractors etc.. Other income for the year has increased by Rs. 125.02 crore to Rs. 387.63 crore as compared to

Rs. 262.61 crore during previous year registering an increase of 47.61% .This is mainly on account of receipt of late payment surcharge from beneficiaries amounting to Rs. 107.29 crore (Previous year Rs. 9.39 crore) during the year and receipt of interest of Rs. 16.57 crore (Previous year: nil) on refund of land compensation case adjudicated in favour of company.

Major components of other income are as under:

(Rs. in Crore)

Income Financial Year 2019-20 Financial Year 2018-19
Interest from Banks 204.85 264.21
Late Payment Surcharge from Beneficiaries 107.29 9.39
Other Miscellaneous Income (Including 75.49 (10.99)
Liquidated Damages, excess provision/ sundry credit balances written back, receipt of maintenance of ICF, Interest from Employees, Contractors, Others and foreign currency fluctuation adjustment)
Total Income 387.63 262.61

The income from bank term deposits has registered a decline of 22.47 % from last financial year attributed to decrease in earning by Rs. 59.36 crore mainly due to decrease in investable funds and reduction in rate of interest on Short term deposit with banks.

2. Expenditure (

Rs. In Crore)

Expenditure Financial Year 2019-20 Financial Year 2018-19
Employee Benefits Expense (Note 2.32) 307.68 315.81
Finance Costs (Note 2.33) 268.07 235.33
Depreciation and Amortisation (Note 2.34) 384.09 390.26
Other Expenses (Note 2.35) 362.89 305.28
Total Expenditure 1322.73 1246.68

The total expenditure of the Company has increased by 6.10 % to Rs. 1322.73 crore in the fiscal 2020 from Rs. 1246.68 crore in Fiscal 2019 mainly on account of increase in finance cost by Rs. 32.74 crore and other expenses by Rs. 57.61 crore.

Employee Benefits Expense

The Employee Benefits Expense includes Salaries and Wages, Allowances, Incentives, Contribution to Provident Funds & Other Funds and Welfare Expenses. These Expenses accounted for 23.26 % of total expenditure in Fiscal 2020 as compared to 25.33 % in Fiscal 2019.

The Employee Benefits Expense during the year was Rs. 307.68 crore (previous year Rs. 315.81 crore) i.e. decrease of Rs. 8.13 crore in comparison to the previous year. The decrease is due to reduction of employees in operational projects and additional expenditure during the previous year on account of regularisation of 1997 pay scales.

Finance Costs

The Finance Cost mainly consists of interest on Rupee Term Loans, Foreign Currency Loans, and Guarantee Fees etc. The borrowings are denominated in rupees, including those in foreign currencies, for accounting purposes.

During the current fiscal, finance costs increased by Rs. 32.74 crore (current year Rs. 268.07 crore, previous year Rs. 235.33 crore).This is mainly due to increase of Exchange Rate Variation on restatement of foreign currency loans as on 31.03.2020 increase in foreign currency rate from Rs. 69.63 (31.03.2019) to Rs. 76.20 (31.03.2020). However, there will be no impact on the profitability as the same is recoverable from beneficiaries and has been accounted for as regulatory income.

Finance costs represent 20.27% of total expenditure during fiscal 2020 in comparison to 18.88 % during fiscal 2019.

Depreciation and Amortisation Expenses

As per the Accounting Policy of the Company, depreciation is charged on straight line method following the rates & methodology notified by Central Electricity Regulatory Commission (CERC) for the purpose of fixation of tariff in accordance with Schedule-II of the Companies act 2013 except for some items for which depreciation is charged at the rates assessed by the company.

The depreciation cost has decreased by Rs. 6.17 crore (C.Y. Rs. 384.09 crore; P.Y.

Rs. 390.26 crore). This is due to change in useful life of hydro power projects from 35 years to 40 years by CERC in tariff Regulations applicable for the period 2019-24 partially offset by recognition of depreciation on Right of Use (ROU) assets after implementation of Ind AS-116 Leases applicable w.e.f. 01.04.2019.

Depreciation represents 29.04% of our total expenditure during fiscal 2020 in comparison to 31.30 % during fiscal 2019.

Other Expenses

Other Expenses comprises mainly of Repair & Maintenance of Buildings, Roads, Electromechanical works and Plant & Machinery, Insurance, Security, CSR Expenses, interest payable to beneficiaries and other administrative expenses.

Other Expenses represents 27.43 % of total expenditure during fiscal 2020 in comparison to 24.49 % during fiscal 2019. In absolute terms the expenses were Rs. 362.89 crore in fiscal 2020 as compared to Rs. 305.28 crore during previous year i.e. increase of Rs. 57.61 crore. The increase is mainly due to interest payable to beneficiaries amounting to Rs. 63.52 crore after finalization of tariff of NJHPS for the period 2014-19. There is also decrease in other expenses by Rs. 10.82 crore on rent and hiring of vehicles etc. which has been recognised as ROU assets after implementation of Ind AS-116 Leases applicable w.e.f. 01.04.2019.

Net Movement in Regulatory Deferral Account Balance (Note 2.17)

The company is mainly engaged in generation and sale of electricity. The price to be charged by the company for electricity sold from hydro power projects to its customers is determined by the CERC which provides guidance on the principles and methodologies for determination of the tariff. The tariff is based on allowable costs like interest, depreciation, operation & maintenance expenses, etc. with a stipulated return on equity.

As per the CERC Tariff regulations any gain or loss on account of exchange rate variation during the construction period shall form part of the capital cost till the declaration of commercial operation date. Exchange differences arising from settlement/translation of monetary item denominated in foreign currency to the extent recoverable from or payable to beneficiaries in subsequent periods as per CERC Tariff Regulations are recognized on an undiscounted basis as regulatory deferral account debit / credit balance by credit/debit to movements in regulatory deferral account balances and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries. The same is accounted for as per Ind AS-114 ‘Regulatory Deferral Accounts. Accordingly, an amount of Rs. 150.94 crore (Previous year Rs. 114.17 crore) has been accounted as FERV and credited to Regulatory Deferred Account Debit Balance.

Pay revision of employees of CPSEs has revised from 1 January, 2017. Accordingly, Impact of revision of pay included in employee benefit expenses recognized in the Statement of Profit & Loss and Other Comprehensive Income (OCI). CERC Tariff regulations 2014-19 provides that the impact of actual increase in employee cost on account of pay revision of operational power stations is recoverable from beneficiaries in future through Tariff. Accordingly, additional expenditure on employee benefit on pay revision to the extent charged to the Statement of Profit & Loss or to the Other Comprehensive Income and recoverable from beneficiaries in subsequent periods as per Tariff Regulations amounting to Rs. 42.00 crore (Previous year Rs. 73.14 crore) has been recognized as Regulatory Income.

Accordingly, for the financial year 2019-20 the regulatory income recognized in the statement of Profit and Loss on account of FERV and employee benefits expense together amount to Rs. 192.94 crore (Previous year Rs. 187.31 crore).

Profit before Tax

Profit before tax increased by 9.31 % to Rs. 1959.36 crore during fiscal 2020 as against Rs. 1792.54 crore during previous fiscal due to the reasons explained above.

Tax Expenses:

i) Current Tax Expense (Note 2.44)

The Company recognises tax on income in accordance with provisions of the Income Tax Act. During the year, the Company is liable to pay tax equivalent to Minimum Alternate Tax (MAT) @ 17.47% (previous year @ 21.55%). The Current Tax for the year is Rs. 336.71 crore as compared to Rs.386.00 crore during previous year.

ii) Adjustment relating to earlier years

During the year Government of India launched a new scheme "Vivad se Vishwas" on 17 March, 2020. The aim of the scheme is to provide resolution of disputed income tax matters pending before various appellate forums and minimising income tax litigation. There were seven number of cases outstanding as on 31.01.2020 from assessment year 2008-09 to 2017-18. The management had opted for the scheme for the settlement of all the cases up to assessment year 2017-18. An amount of Rs. 122.01 crore was deposited under this scheme after adjustment of refund / advance tax and decided to settle all the pending cases up to assessment year 2017-18. The tax deposited / adjusted under the scheme has been shown as earlier year tax in the statement of Profit and Loss.

Deferred Tax (Note 2.8)

Deferred tax for the year is on account of temporary difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Accordingly, an amount of Rs. (201.16) crore has been recognised as deferred tax during fiscal 2020 as against Rs. 42.25 crore during the fiscal 2019. Deferred tax has decreased mainly on account of recognition of Deferred Tax Asset on Advance Against Depreciation after settlement of pending cases under "Vivad se Vishwas" Scheme.

Other Comprehensive Income

The Other Comprehensive Income (OCI) is on account of remeasurement of net defined benefit liability/asset in respect of employees. OCI net of tax for the fiscal 2020 is Rs. (18.02) crore in comparison to Rs. (14.82) crore during fiscal 2019.

B. Financial Position

Assets and Liabilities in the Balance Sheet have been classified as‘ Non-Current and ‘Current which have been further classified as financial and other categories as per the accounting standards notified under the Companies (Indian Accounting Standards) Rules, 2015 and Schedule III to the Companies Act, 2013 & subsequent amendments thereto.

The items of the Balance Sheet are as under:


1. Non-Current Assets

( Rs. in Crore)

As of March 31, 2020 As of March 31, 2019
Property, Plant and Equipment (Note 2.1) 7548.07 7683.00
Capital Work-in-progress (Note 2.2) 913.01 748.54
Right-of- use Assets (Note 2.3) 21.31
Other Intangible Assets (Note 2.4) 1.38 1.75
Intangible Assets Under Development
(Note 2.5) 31.87 16.92
Financial Assets
- Investments (Note 2.6) 2212.76 1292.39
- Loans (Note 2.7) 67.83 46.32
Deferred Tax Assets(Net) (Note 2.8) 509.63 308.47
Other Non-Current Assets (Note 2.9) 206.92 251.84
Total 11512.78 10349.23

Non-Current Assets has increased by 11.24 % to Rs. 11512.78 crore (Previous year Rs. 10349.23 crore).

Property, Plant and Equipment (PPE)

PPE includes Net Block after depreciation in respect of Land, Buildings, Roads & Bridges, Plant & Machinery, Generating Plant & Machinery, Electrical Works, Hydraulic Works (Dams, Tunnels etc.), Vehicles, Electrical / Office Equipments, Furniture/Fixtures, Data Processing Equipments etc. Gross Block of PPE during the year increased by Rs. 238.27 crore to Rs. 10035.01 crore (Previous year Rs. 9796.74 crore). The increase is mainly due to capitalisation of remaining 6 units of Sadla Wind Power Project, Gujarat, Capital Spares, expediting office building Delhi and acquisition of Land for Dhaulasidh Project during the year. However, Net Block of PPE at the end of current year is Rs. 7548.07 crore (Previous year Rs. 7683.00 crore) due to charging of depreciation on PPE during the year.

Capital Work-in-progress

Capital Work-in-progress during Current year registered an increase of 21.97% to Rs.913.01 crore (Previous year Rs.748.54 crore) mainly due to increase in Capital work-in-progress of Naitwar Mori, Luhri and Dhaulasidh hydroelectric projects etc.

Right-of-use Assets

The Company has adopted Ind AS-116 Leases effective 1 April, 2019, using the modified retrospective method and therefore the comparatives have not been restated. On the date of initial application right of use assets has been recognised at an amount equal to the lease liabilities. Carrying amount of Right-of-use Assets as at 31 March,2020 is Rs. 21.31 crore .

Other Intangible Assets

Other Intangible Assets includes Software only. Other Intangible Assets at the end of Current year is Rs. 1.38 crore (previous year Rs. 1.75 crore).

Intangible Assets under Development

Intangible Assets under Development is on account of implementation of ERP software. Intangible Assets under Development at the year end is

Rs. 31.87 crore (Previous year Rs. 16.92 crore).

Financial Assets

All financial assets except trade receivables and investments in subsidiaries & Joint Ventures are recognised initially at fair value plus or minus transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit or loss.


Investments are intended for long term and carried at cost which consists of investments in Subsidiaries and Joint Venture Companies. Total Investments at the year end is Rs. 2212.76 crore (Previous year Rs. 1292.39 crore).


Non Current Loans are those loans which are expected to be realised after 12 months from the balance sheets date. These loans mainly include, loans and advances given to employees at concessional rates and have been fair valued at reporting date. Loans at the end of current year is Rs. 67.83 crore (Previous year Rs. 46.32 crore).

Deferred Tax Assets (Net)

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. The net deferred tax assets increased by Rs. 201.16 crore (current year Rs. 509.63 crore, previous year Rs. 308.47 crore). The increase is mainly on account of recognition of Deferred Tax Asset on Advance Against Depreciation.

Other Non-current Assets

Other non-current assets mainly consist of advance tax, tax deducted at source net off provision for tax, Capital Advances given to Contractors, govt. deptt. / organisations mainly for acquisition of land for Devsari Hydro Electric Project and deferred employee benefits expense etc.. Other non - current assets at the end of Current Year is Rs. 206.92 crore (Previous year Rs. 251.84 crore). The decrease is mainly due to adjustment of advance tax after the company decided to settle all the pending cases up to assessment year 2017-18 under "Vivad se Vishwas" Scheme of Government of India and reduction in capital advances after capitalisation of expediting office building, Delhi during the year.

2. Current Assets

(Rs. in Crore)

As of March 31, 2020 As of March 31, 2019
Inventories (Note 2.10) 49.49 44.90
Financial Assets
- Trade Receivables (Note 2.11) 745.44 276.80
- Cash and Cash Equivalents (Note 2.12) 248.23 35.01
- Bank Balances Other than cash and cash equivalents (Note 2.13) 1963.39 2871.07
- Loans (Note 2.14) 18.91 16.88
- Others( Note 2.15) 306.27 861.37
Other Current Assets (Note 2.16) 123.85 125.46
Total 3455.58 4231.49

Current Assets as on March 31, 2020 has decreased by 18.34% to Rs.3455.58 crore (Previous year Rs. 4231.49 crore).


Inventories mainly comprise stores & spares which are maintained for operating plants. Inventories are valued at lower of cost arrived at on weighted average basis and net realisable value. Inventories were valued at Rs. 49.49 crore as on 31 March, 2020 (Previous year Rs. 44.90 crore).

Financial Assets

Trade Receivables

Trade Receivables mainly consists of receivables on account of Sale of Energy. Trade receivable does not include unbilled revenue which has been shown separately under other current financial assets (Note 2.15). Trade Receivables during the Current year has increased by 169.31% to Rs. 745.44 crore (Previous year Rs. 276.80 crore). Trade receivable has increased due to arrear billing of RHPS / NJHPS after finalisation of tariff for the period 2009-14 and 2014-19. As per the arrangements between the company, banks and beneficiaries, the bills of beneficiaries amounting to Rs. 150.00 crore (previous year: nil) have been discounted during the year. Accordingly, Trade receivables have been disclosed net off bills discounted. Trade receivables are 21.57% of current assets.

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents (Note 2.12 & 2.13)

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents include mainly balances in Term Deposits.

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents during the current year decreased by Rs. 694.46 crore to Rs. 2211.62 crore (Previous year Rs. 2906.08 crore).

Net cash generated from Operating Activities was Rs.1677.56 crore during the year 2019-20 (Previous year Rs.1 039.85 crore).

Net cash from investing activities was Rs. (118.91) crore as compared to Rs. (58.16) crore in the previous year. Expenditure in investing activity is mainly on Property, Plant & Equipment, CWIP and investment in subsidiary & joint venture companies etc., net off by cash inflows from encashment of Term Deposits and interest on Term Deposits from banks.

During the year the company used net cash of Rs. 1345.43 crore for financing activities (Previous year Rs.1107.02crore) as detailed below:

Loan amounting to Rs. 218.64 crore was repaid in the year 2020 (Previous year Rs. 205.45 Crore). In the year 2020, cash outflow on account of payment of dividend including interim dividend and tax thereon was Rs. 1111.83 crore (Previous year Rs. 805.29 crore). Interest & Finance charges paid during the year was Rs. 106.79 crore (Previous year Rs. 96.28 crore).

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents are 64.00% of current assets.


Current loans as at 31.03.2020 is Rs. 18.91 crore (Previous year Rs. 16.88 crore). Current loans during the year has increased by Rs. 2.03 crore mainly due to increase in short term loans to employees.

Other Financial Assets

Other financial assets includes interest accrued but not due on deposits with Banks, amount recoverable from Contractors & Suppliers and Unbilled Revenue etc. Other financial assets decreased by Rs. 555.10 crore to Rs. 306.27 crore during current year (Previous year Rs. 861.37 crore). The decrease is due to reduction in unbilled revenue as during the previous year an additional unbilled amount of Rs. 460.00 crore was accounted for in respect of sales of Rampur Hydro Power Station (RHPS) on the basis of 85% of the capital cost filed with CERC for the period 2014-19 .The reduction is also due to decrease in interest accrued but not due on deposits with Banks .

Other Current Assets

Other Current Assets mainly include advances to Govt Departments other than capital advances and prepaid expenses etc. Other Current Assets decreased by Rs. 1.61 crore to Rs. 123.85 crore during current year (Previous year Rs. 125.46 crore).

Regulatory Deferral Account Debit Balance

Expense/Income recognised in the Statement of Profit & Loss to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC tariff regulations are recognised as "Regulatory deferral account balances" in line with the Guidance Note on "Accounting for Rate Regulated Activities" issued by the Institute of Chartered Accountants of India and also keeping in view the provisions of Ind AS-114 Regulatory Deferral Accounts. Regulatory deferral account balances are adjusted from the year in which the same become recoverable from or payable to the beneficiaries.

Regulatory deferral account balances include foreign exchange rate variation on foreign currency loans regarded as borrowing cost and employee benefit expense on account of pay revision w.e.f. 01.01.2017, to the extent recoverable from beneficiaries in subsequent period. Regulatory deferral account debit balance at the year-end is Rs. 532.87 crore (Previous year Rs. 339.93 crore).


Total Equity

Total Equity of the Company at the end of the financial year 2019-20 has increased to Rs. 11759.31 crore from Rs. 11238.78 crore in the previous year registering an increase of 4.63% as per details given below:

(Rs. Crore)

Particulars Total Equity
Opening Balance as on 01.04.2019 11238.78
Add: Profit for the year 1651.89
Less: Other Comprehensive Income 18.02
Less: Dividend & Dividend Tax 1113.34
Balance as on 31.03.2020 11759.31

The increase in total equity resulted in increase in the book value per share to

Rs. 29.92 as at 31st March,2020 (Previous year Rs. 28.60 per share).

During the Financial Year 2019-20, the Government of India (GOI) sold 2.01% of its stake in the company through tranches of CPSE ETF (1.90%) and Bharat 22 ETF (0.11%). Accordingly, GOIs Shareholding in the company came down from 61.93% as at 31 March, 2019 to 59.92% as at 31 March,2020.


Non-Current Liabilities

Financial Liabilities

(Rs. in Crore)

Particulars As of March 31, 2020 As of March 31, 2019
Borrowings (Note 2.20) 1972.19 1940.46
Lease Liabilities (Note 2.21) 12.57
Other Financial Liabilities (Note 2.22) 0.01 0.12
Provisions (Note 2.23) 85.49 69.86
Other Non-current Liabilities (Note 2.24) 784.64 817.27
Total 2854.90 2827.71


Borrowings as on March 31, 2020 were Rs. 1972.19 crore as against Rs. 1940.46 crore as on March 31, 2019. Over the last year, Borrowings excluding current maturities of long term debts have registered an increase of 1.64% amounting to Rs. 31.73 crore. Out of these Rs. 228.47 crore (previous year Rs. 166.88 crore) is Secured and Rs. 1743.72 Crore (previous year Rs. 1773.58 crore) is Unsecured. Secured Loans are borrowed from Axis Bank & Punjab National Bank and Unsecured Loans are on account of borrowing in foreign currency from World Bank. During the year an amount of Rs. 105.99 crore has been borrowed from Punjab National Bank for Naitwar Mori Hydro electric Project. The Unsecured Loans have registered a decrease of 1.68% amounting to Rs. 29.86 crore during current year. The decrease is due to repayment of loans.

Above borrowings do not include an amount of Rs. 241.61 crore (Secured Rs. 44.40 crore and Unsecured Rs. 197.21 crore) drawn for Rampur Hydro Power Station (RHPS) and shown under Other Current Financial Liabilities being current maturities of long term debts payable during next financial year.

The debt to equity ratio (inclusive of Current Maturities of Long Term Borrowings) at the end of financial year 2019-20 of the company is 0.19 (previous year 0.19).

Lease Liabilities

The company has adopted Ind AS-116 effective 1 April 2019, using the modified retrospective method and therefore the comparatives have not been restated. On the date of initial application, the lease liability has been measured at the present value of the remaining lease payments. Lease liabilities during the current year is Rs. 12.57 crore (Previous year: Nil).

Other Financial Liabilities

Other Financial liabilities include Retention Money from Contractors and others. Other financial liabilities during the current year is Rs. 0.01 crore (Previous year Rs. 0.12 crore).

Non-current Provisions

Non - current Provisions are on account of employee benefits provided on the basis of Actuarial Valuation and includes leave encashment and Other Retirement Benefits which are expected to be settled beyond a period of twelve months from the balance sheet date. Non-current provisions increased by Rs. 15.63 crore to Rs. 85.49 crore during current year (Previous year

Rs. 69.86 crore). Disclosures as per Ind AS-19 "Employee Benefits" are given in Note No. 2.45 to the financial statements.

Other Non-current Liabilities

Other non-current liabilities include Advance against Depreciation (AAD) and Deferred Foreign Currency Fluctuation Liability etc.

Other non-current liabilities have registered a decrease of Rs. 32.63 Crore to

Rs. 784.64 crore (Previous year Rs. 817.27 crore) as an amount of Rs. 32.24 crore on account of AAD has been transferred to other current liabilities as the same is adjustable in sales during next financial year.

4. Current Liabilities

Financial Liabilities

(Rs. in Crore)

As of March 31, 2020 As of March 31, 2019
Lease Liabilities (Note 2.25) 9.64
Trade Payables (Note 2.26) 32.27 24.40
Other Financial Liabilities (Note 2.27) 585.12 594.62
Other Current Liabilities (Note 2.28) 46.38 38.77
Provisions (Note 2.29) 213.61 196.37
Total 887.02 854.16

The Current Liabilities as at March 31, 2020 and 2019 were Rs. 887.02 crore and Rs. 854.16 crore respectively. The Current Liabilities have increased by 3.85 % mainly due to increase in Provisions.

Lease Liabilities

Lease Liabilities are on account of recognition of leases which are due within next one year and has been accounted as per Ind AS-116.

Trade Payables

Trade payables includes liabilities in respect of amount due on account of goods purchased or services received in normal course of business operations other than liability for Purchase / Construction of Fixed Assets. Trade Payables at the end of current year is Rs. 32.27 crore (Previous year Rs. 24.40 crore).

Other Financial Liabilities

Other Financial Liabilities mainly includes Current Maturities of Long Term Debts payable within Twelve Months from the balance sheet date, Liabilities for Employees Remuneration and Benefits, Liabilities for Purchase / Construction of Fixed Assets and Deposits, Retention Money from Contractors and Others. Other Current Liabilities has decreased by Rs. 9.50 crore to Rs. 585.12 crore (Previous year Rs. 594.62 crore).

Other Current Liabilities

Other Current Liabilities mainly includes current liability of Advance against Depreciation. Other Current Liabilities at the year-end was Rs. 46.38 crore (Previous year Rs. 38.77 crore).


Short Term Provisions include Unfunded Employees Benefits payable within Twelve Months as per Actuarial Valuation, Interest on Arbitration Awards and Performance Related Pay etc. Provisions have increased by Rs. 17.24 crore in the fiscal 2020 to Rs. 213.61 crore (Previous year Rs. 196.37 crore ) mainly due to provision for interest on arbitration awards for the year.

C. Contingent Liabilities

The following are the components of claims against the company not acknowledged as debt:

(Rs. in crore)

Particulars As at 31.03.2020 As at 31.03.2019
Capital Works 615.16 554.71
Land Compensation 27.53 44.46
Disputed Income Tax Demand 32.22
Others 150.00 1.65
Total 792.69 633.04

The above contingent liabilities do not include claims against pending cases in respect of service matters and others where amount cannot be quantified.

Contingent Liabilities increased by 25.22 % to Rs. 792.69 crore as of March 31, 2020 (Previous year Rs. 633.04 crore) mainly on account of bills discounted with banks against trade receivables amounting to Rs. 150.00 crore.



1. Subsidiary Companies

Company has two wholly owned subsidiary companies as at 31.03.2020. Presently both the companies are yet to commence the operations. The performance of the subsidiaries is as under:

SJVN Thermal Pvt. Ltd.

SJVN Thermal Pvt. Ltd is 100% subsidiary company of SJVN Ltd. The authorized share capital of SJVN Thermal Pvt. Ltd. is Rs. 3000 crore. The Company has taken up the development of 1320 MW Coal based Thermal Power Project located near Chausa village in District Buxar of Bihar, which is in construction stage. Total equity share capital as on 31 March, 2020 is Rs. 996.68 crore inclusive of share application money pending allotment (Previous year Rs. 436.68 crore). Total Assets as on 31 March 2020 is Rs. 1097.28 crore (Previous Year: Rs. 628.63 crore).

SJVN Arun 3 Power Development Company Pvt. Ltd.

SJVN Arun 3 Power Development Company Pvt. Ltd. was incorporated in Nepal as a wholly owned subsidiary company of SJVN Ltd on 25.04.2013. The authorized share capital of the company is Rs. 1546.88 crore (NPR 2475.00 crore). The company has been formed to execute the 900 MW Arun-3 Hydroelectric Project in Nepal which is under construction. This project is to be installed in the Sankhuwasabha District of Nepal. Total paid up equity capital as on 31 March,2020 is Rs. 847.17 crore (Previous Year Rs. 194.86 crore) .

Total Assets as on 31 March, 2020 is Rs. 1109.25 crore (Previous Year Rs. 558.87 Crore).

2. Joint Venture Companies

As at 31.03.2020, the company has two joint ventures. The performance of the Joint Ventures are as under:

Kholongchhu Hydro Energy Limited

Kholongchhu Hydro Energy Limited (KHEL) was incorporated in Bhutan on June, 12, 2015 under the companies Act of the Kingdom of Bhutan 2000 as joint venture Company of Druk Green power Corporation Ltd, Bhutan (DGPC) and SJVN Ltd. having 50% shareholding each. The Company has been formed for construction of 600MW Kholongchhu Hydro Project on the river Kholongchhu, Bhutan which is in construction stage. SJVN has invested an amount of Rs. 166.53 Crore as on 31.03.2020 (Previous Year Rs. 137.29 crore).

Cross Border Power Transmission Company Limited

Cross Border Power Transmission Company Limited (CPTC) is a joint venture of SJVN Ltd with IL&FS Energy Development Company Ltd. (IEDCL), Power Grid Corporation of India Ltd. (PGCIL) & Nepal Electricity Authority (NEA). The Company is principally engaged in establishment, operation & maintenance and transfer of Indian Portion of Indo-Nepal Cross Border Transmission Line from Muzaffarpur to Dhalkebar.

SJVN has invested Rs. 12.61 crore (Previous Year Rs. 12.61 crore) in the joint venture. The total income and PAT during the year 2019-20 was Rs. 40.79 Crore (previous year Rs. 36.30 crore) and Rs. 21.43 Crore (previous year Rs. 15.23 crore) respectively.

E. Consolidated Financial Statements of SJVN Ltd.

The consolidated financial statements have been prepared in accordance with Indian Accounting Standard (Ind AS-110) - ‘Consolidated financial Statements Ind AS-28 -Investments in Associates & Joint Venture, Ind AS-112 ‘Disclosure of Interests in other entities and are included in the Annual Report.

The Financial Statements of the company and its subsidiaries are combined on line by line basis by adding together of the like items of assets, liabilities, income and expenses after eliminating intra-group balances, intra-group transactions, unrealized profit or losses. The Joint Venture Companies have been consolidated using the Equity Method of Accounting.

A brief summary of the results on a consolidated basis is given below:

(Rs. in Crore)

Particulars FY 2019-20 FY 2018-19
Total Revenue 3097.42 2,907.94
Profit before Tax 1971.49 1794.79
Profit after Tax 1666.21 1366.54
Other Comprehensive Income (net of tax) (18.02) (14.82)
Total Comprehensive Income 1643.19 1351.72