SJVN Ltd Management Discussions.


All India installed power generation capacity as on 31.03.2022 was 3,99,496.61 MW. A capacity addition of 11478 MW was targeted during the year 2021-22 comprising 10285 MW of thermal, 493 MW of hydro power and 700 MW nuclear power, capacity addition of 4878 MW comprising 4485 MW of thermal and 393 MW of hydro power was achieved up to 31.03.2022.

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, District Buxar in Bihar, 900 MW Arun-3 HEP in Nepal, 60 MW Naitwar Mori HEP in Uttarakhand, 900 MW Kholongchhu HEP in Bhutan, 210 MW Luhri Stage-I HEP, 66 MW Dhaulasidh HEP in Himachal Pradesh, 70 MW Bagodara Solar Power Project in Gujarat, 75 MW Parasan Solar Power Project in Uttar Pradesh and 1000 MW IREDA Solar Power Project in Rajasthan.

As regards hydro potential, India has an estimated hydro power potential of about 1,50,000 MW out of which only about 46722.52 MW (as on 31.03.2022) has been commissioned. The bulk of the unharnessed potential is located in the hill states/UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu & Kashmir. The above industry scenario signifies that there is ample opportunity for consistent growth of business in hydro sector in near future.


• 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 inhouse State of art hard coating facility installed at one of the power stations.

• SJVN has in-house capability for complete design of mega hydro power projects, large value contract award, contract & project management.

• SJVN has efficient plant operation expertise with minimal down time of machines and maximizing the Plant Availability Factor.

• SJVN has stable revenue stream through long term power purchase agreements with distribution licensees. The allocation of power from its power stations is made as per PPAs and by the Ministry of Power, Government of India.

• Historical financial performance and steady cash flows over the years make SJVN capable of funding the projects in pipeline.

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

• SJVN has competent and committed workforce. SJVN fully recognize that the contribution of its employees is integral to the achievement of its ambitious plans and has 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 and effective Corporate Governance.


• The unharnessed hydro potential of 1,03,277 MW (as on 31.03.2022) primarily located in the hill states/UTs of Arunachal Pradesh, Uttarakhand, Himachal Pradesh, Sikkim and Jammu & Kashmir.

• 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.

• Honble Prime Minister announcement during COP26 Glasgow that India will reach its non-fossil energy capacity to 500 GW by 2030 is creating ample opportunities in renewable energy sector.


• 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 powers to incur expenditure on preconstruction 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 events.

• 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.

• With the tariffs of solar and wind power projects going down, development of hydro power projects, which is the core strength of SJVN, is becoming increasingly less viable.

• Any Technological breakthrough which makes battery storage systems for storing renewables energy economical may make hydro power generation unviable.

• Non signing of Power Purchase Agreements (PPAs) by beneficiaries for new hydro projects and disowning signed PPAs where tariff of the project is high.


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,

obligation of free power and other incentives to State Governments is leading to 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 Investor Relation Section on SJVN website


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 Risk Management Policy has been disclosed on the website of the company and may be accessed at Investor Relation Section on SJVN website


A detailed financial discussion and analysis is furnished below on the Audited Financial Statements of the company for the financial year 2021- 22 vis-a-vis financial year 2020-21.

Notes referred in below paragraphs are part of the Standalone financial statements for the financial year 2021-22 placed elsewhere in this report.

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



F.Y. 2021-22 F.Y. 2020-21
Units of Electricity Generated (Million Units) 9207.07 9223.49

INCOME in Crore

1. Revenue from Operations
a) Energy Sales 2408.68 2448.07
b) Consultancy Income 2.64 5.44
c) Other Operating Revenues 10.64 37.32
Total Revenue from Operations 2421.96 2490.83
2. Other Income
a) Interest
- On deposits, advances to employees, contractors and Others etc. 113.98 123.92
b) Late Payment Surcharge from Beneficiaries 61.41 584.16
c) Others 28.19 14.16
Total Other Income 203.58 722.24
Total Income 2625.54 3213.07

The income of the Company comprises of income from sale of electricity, interest & late payment surcharge received from beneficiaries, consultancy, interest earned on investment of surplus funds and dividend from Joint Venture Company etc. The gross income for financial year 2021- 22 is 2625.54 crore as compared to 3213.07 crore in the previous year registering a decrease of 18.29%. The decrease in gross income is mainly due to decrease in Late Payment Surcharge from Beneficiaries by 522.75 crore which was recognised during the previous year after amendment to regulation 59 of CERC notification dated 19.02.2021 including arrears of earlier period.

Tariff for computation of sale of energy

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. CERC has approved the tariff of hydro power stations as per above regulations. 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 as well as incentive by way of deviation charges where the Power Station of the Company contribute towards maintaining grid stability. Recovery of capacity charges is dependent on the actual availability of plant for generating power with reference to Normative Annual Plant Availability Factor (NAPAF). Company is entitled to receive incentives for achieving higher Plant Availability Factor against NAPAF. The sales also include reimbursement on account of Foreign Exchange Rate Variation (FERV).

Revenue from operations also includes sale of power from Wind and Solar Power projects situated in the States of Maharashtra and Gujarat. The rates of sale of energy is regulated as per Power Purchase Agreement (PPA) signed with the respective state government utilities.

Revenue from Operations (Note 2.32)

Energy Sales

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 2021-22 have been recognized at 2408.68 crore as compared to 2448.07 crore during the financial year 2020- 21.

Energy sales include an amount of (68.46) crore (previous year 56.35 crore) pertaining to earlier years.

Sales includes an amount of 208.36 crore (previous year 191.85 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 lower as compared to previous year due to decrease in water discharge.

The company has a rebate policy for providing graded discount for early payment. The rebate is netted off from energy sales.

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




2021-22 2020-21 2021-22 2020-21
Design Energy (MUs) 6612 6612 1878 1878
Gross Generation (MUs) 7067.37 7098.93 1981.20 1995.33
Normative PAF (%) 90 90 85 85
Actual PAF (%) 106.60 105.38 106.36 104.80

Sales also includes Unscheduled Interchange (UI) Charges amounting to 44.21 crore (previous year 28.14 crore) for the positive deviation in generation with respect to schedule, at rates notified by CERC from time to time.

Revenue from Wind/Solar Power Projects:

The revenue from sale of power from Renewal Projects (Wind and Solar Power) has increased by 6.35 crore due to increase in generation of Wind and Solar Power by 29.27 MUs (current year 158.50 MUs) (Previous year: 129.23 MUs).


Revenue from operations also includes an amount of 2.64 crore (Previous Year 5.44 crore) towards consultancy charges. Consultancy for the year was provided to subsidiary company SJVN Arun-3 Power Development Company Pvt. Ltd. (SAPDC), Nepal. Decrease in income is mainly due to adjustment of consultancy provided to Teesta Urja Limited in the earlier years by 2.32 crore.

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 from the beneficiaries amounting to 7.98 crore (previous year: 34.70 crore) has been recognised after the truing up/ finalisation of tariff by CERC.

Revenue from operations for F.Y. 2021-22 constitutes 92.25% of total income as compared to 77.52% for F.Y. 2020-21.

Other Income (Note 2.32)

Other income mainly comprises of interest income on short term deposits with banks, late payment surcharge, interest from employees and contractors etc. Other income for the year has decreased by 518.66 crore to 203.58 crore as compared to 722.24 crore during previous year registering a decrease of 71.81%. This is mainly on account of decrease in late payment surcharge from beneficiaries by 522.75 crore (current year 61.41 crore) (previous year 584.16 crore).

Major components of other income is as under: ( in Crore)

Particulars Financial Year 2021-22 Financial Year 2020-21
Interest from Banks 96.12 113.48
Late Payment Surcharge from Beneficiaries 61.41 584.16
Other Miscellaneous Income(Including Liquidated Damages , excess provision/sundry credit balances written back, receipt of maintenance of ICF, Interest from Employees, Contractors, Others, foreign currency fluctuation adjustment and dividend from Joint Venture Company) 46.05 24.60
Total Income 203.58 722.24


2- Expenditure ( in Crore)

Particulars Financial Year 2021-22 Financial Year 2020-21
Employee Benefits Expense (Note 2.34) 289.41 320.55
Finance Costs (Note 2.35) 161.34 (2.85)
Depreciation and Amortisation (Note 2.36) 404.29 393.27
Other Expenses (Note 2.37) 403.80 368.82
Total Expenditure 1258.84 1079.79

The total expenditure of the Company has increased by 16.58 % to 1258.84 crore in the financial year 2021-22 from 1079.79 crore in financial year 2020-21 mainly on account of increase in finance cost by 164.19 crore. Total expenditure as percentage of total income during the F.Y. 2021-22 was 47.95% as compared to 33.61% during the F.Y. 2020-21.

Employee Benefits Expense

The Employee Benefits Expense includes Salaries and Wages, Allowances, Incentives, Contribution to Provident & Other Funds and Welfare Expenses. These Expenses accounted for 22.99 % of total expenditure in F.Y.2021-22 as compared to 29.69 % in F.Y. 2020-21.

The Employee Benefits Expense during the year was 289.41 crore (previous year 320.55 crore) i.e., decrease of 31.14 crore in comparison to the previous year. The decrease is due to reduction of man power in operational projects.

Finance Costs

The Finance Cost mainly consists of interest on Rupee Term Loans, Foreign Currency Loans, Guarantee Fees, interest on bonds, commercial papers etc. The borrowings are denominated in rupees, including those in foreign currencies, for accounting purposes. During the current financial year, finance costs increased by 164.19 crore (current year 161.34 crore, previous year (2.85) crore). The increase during the year as compared to previous year was due to increase in long term and short term borrowings and increase of exchange rate as on 31.03.2022 on foreign currency loans.

The increase in finance cost during the year is due to the reasons enumerated as below:

i) Increase in interest on foreign/domestic borrowings, Bonds and commercial Papers raised by 40.06 crore (current year 67.94 crore) (Previous Year 27.88 crore).

ii) During the year, the company raised funds of 1000 crore through non-convertible debentures/bonds and external commercial borrowings from PNB, Dubai amounting to 2230.28 crore. Total borrowings as at 31.03.2022 were 5062.36 crore (previous year 2102.68 crore).

Depreciation and Amortisation Expenses

As per the Accounting Policy of the Company, depreciation is charged on assets of operating units 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. Depreciation on assets other than operating units of the company is charged to the extent 90% of the cost of the asset following the rates notified by CERC for fixation of tariff except for some items for which depreciation is charged at the rates assessed by the company.

The depreciation and amortisation cost during the year has increased by 11.02 crore, Current year 404.29 crore (Previous year 393.27 crore). Depreciation and amortisation represent 32.12% of our total expenditure during F.Y.2021- 22 in comparison to 36.42% during F.Y. 2020-21.

Other Expenses

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

Other Expenses represents 32.08 % of total expenditure during F.Y. 2021-22 in comparison to 34.16 % during F.Y.2020-21. In absolute terms the expenses were 403.80 crore in F.Y. 2021-22 as compared to 368.82 crore during previous year. This is higher by 34.98 crore as compared to previous year. The increase is mainly due to payment of interest to beneficiaries after finalization of tariff of NJHPS & RHPS for the period 2014-19 & 2019-24.

Exceptional Items (Note 2.38)

During the year expenditure incurred on Transmission line office at Muzaffarpur for implementation of Indian portion of transmission line amounting to 23.26 crore was written off and has been recognised as an exceptional item.

Net Movement in Regulatory Deferral Account Balance (Note 2.39)

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. 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 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 15.42 crore (Previous year (86.77) crore) has been debited to Regulatory Deferral Account Debit Balance.

During the previous year, the company had received an arbitration award in respect of Nathpa Jhakri Hydro Power Station (NJHPS). Accordingly, the principal amount of arbitration award including Interest during construction period was capitalized during previous year. The interest on arbitration award charged to profit & loss amounting to 25.59 crore (Previous year 257.82 crore) has been included in movement in regulatory deferral account balance as the same is recoverable from beneficiaries through tariff in future.

O&M expenses excluding security expenses are fixed by CERC in tariff regulations 2019-24. Considering the methodology followed by CERC for allowing impact of the previous pay revision, tariff orders issued by CERC under Regulations, 2014 and the provisions related to change in law of CERC Tariff Regulations, 2014, a regulatory asset has been created (Regulatory deferral account debit balance) towards the increase in O&M expenditure. During the year tariff orders of NJHPS have been received and accordingly an amount of (94.11) crore has been adjusted as movement in regulatory deferral account balance .

Accordingly, for the financial year 2021-22 the regulatory income (net off tax) recognized in the statement of Profit and Loss on account of FERV, O&M/Security expenses and interest on arbitration awards together amount to (43.82) crore (Previous year 271.38 crore).

Profit before net movement in regulatory deferral account balances and Tax

Profit before net movement in regulatory deferral account balances and tax decreased by 26.98 % to 1343.44 crore during F.Y. 2021-22 as against 1839.84 crore during previous year due to the reasons explained above.

Tax Expenses:

Current Tax Expense

The Company recognises tax on income in accordance with provisions of Income Tax Act. During the year, the Company is liable to pay tax equivalent to Minimum Alternate Tax (MAT). The Current Tax for the year is 229.09 crore as compared to 316.27 crore during previous year. The decrease in tax incidence is due to decrease in Profit before tax.

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. An amount of 93.01 crore has been recognised as deferred tax during F.Y. 2021-22 as against 161.91 crore during the F.Y. 2020

21. The decrease in deferred tax liability debited to statement of profit and loss during the year was mainly due to decrease in temporary difference in carrying amount of PPE and MAT credit utilisation.

Other Comprehensive Income

The Other Comprehensive Income (OCI) is on account of re measurement of net defined benefit liability/asset in respect of employees. OCI net of tax for the financial year 2021-22 is (1.63) crore in comparison to (1.66) crore during financial year 2020-21.

Cash Flows

Cash & cash equivalents and cash flows on various activities are given below: ( in Crore)

Particulars F.Y. 2021-22 F.Y. 2020-21
Opening cash & cash equivalent (11.58) 248.23
Net cash from operating activities 1650.43 2010.54
Net cash used in investing activities (4259.10) (1227.98)
Net cash flow from financing activities 2329.21 (1042.37)
Net increase/(decrease) in cash and cash equivalent (279.46) (259.81)
Closing cash and cash equivalents (291.04) (11.58)

Statement of cash flows include cash flows from operating, investing and financing activities.

Net cash generated from Operating Activities was 1650.43 crore during the year 2021-22 (Previous year 2010.54 crore). The decrease is mainly due to decrease in profit before tax mainly on account of reduction of late payment surcharge during the year as in the previous year late payment surcharge including amount of earlier periods was recognised.

Net cash from cash outflow on investing activities was (4259.10) crore as compared to (1227.98) crore in the previous year. Cash outflow on investing activities is mainly on setting up of new projects, Property, Plant & Equipment, Capital Work in progress and investment in subsidiary & joint venture companies etc. Increase in investing activities is mainly due to increase of investment in term deposits with bank by 3066.66 crore (current year 2043.46 crore) (previous year (1023.20 crore). There is also an increase in investment in Property, Plant & Equipment and Capital Work in progress etc by 727.68 crore (current year 1282.77 crore) (previous year 555.09 crore). There is decrease in investment in subsidiary & joint venture companies by 862.41 crore (current year 993.24 crore) (previous year 1855.65 crore)

During the year the company used net cash of 2329.21 crore for financing activities (Previous year (1042.37) crore) as detailed below:

Borrowings amounting to 3338.41 crore was raised during the year as compared to 183.01 crore during the previous year and borrowings amounting to 315.78 crore was repaid in the year 2022 (Previous year 238.74 Crore) . In the year 2022, cash outflow on account of payment of dividend including interim dividend thereon was 610.54 crore (Previous year 903.69 crore) . Interest & Finance charges paid during the year was 77.05 crore (Previous year 78.71 crore).


The items of the Balance Sheet are as under:


1. Non-Current Assets ( in Crore)

Particulars As at March 31,
2022 2021
Property, Plant and Equipment (Note 2.1) 7290.62 7470.88
Capital Work-in-progress (Note 2.2) 2226.15 1201.89
Intangible Assets (Note 2.3) 21.28 27.58
Intangible Assets Under Development(Note 2.4) 0.41 4.89
Financial Assets
- I nvestments (Note 2.5) 4921.88 3462.14
- Loans (Note 2.6) 96.84 79.58
- Others (Note 2.7) 186.48 457.60
Deferred Tax Assets(Net) (Note 2.8) 529.71 622.72
Other Non-Cu rrent Assets (Note 2.9) 559.96 249.26
Total 15833.33 13576.54

Non-Current Assets has increased by 16.62 % to 15833.33 crore (Previous year 13576.54 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.), Right of use, Vehicles, Electrical/Office Equipments, Furniture/ Fixtures, Data Processing Equipments etc. Gross Block of PPE during the year increased by 207.57 crore to 10554.12 crore (Previous year 10346.55 crore). The increase is mainly due to capitalisation of Right of use assets(leased assets) for New Solar Power Projects at Solar Park in Uttar Pradesh, Land at Luhri hydroelectric project (Stage-I) and Buildings at Naitwar Mori etc during the year. However, Net Block of PPE decreased by 180.26 crore to 7290.62 crore at the end of current year (Previous year 7470.88 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 85.22% to 2226.15 crore (Previous year 1201.89 crore) mainly due to increase in activities under construction projects of Naitwar Mori, Luhri hydro Electric project (Stage-I) and commencement of construction work of Sunni Dam, Dhaulasidh, Parasan, Gujrai and Gurhah Projects etc.

Intangible Assets and Intangible Assets under Development

Intangible Assets & Intangible Assets under Development is on account of SAP/ERP Software. Net block of both Intangible Assets & Intangible Assets under Development at the end of Current year is 21.69 crore (previous year 32.47 crore).

Non-current Financial Assets Investments

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 4921.88 crore (Previous year 3462.14 crore). The increase in investments is due to infusion of equity in Subsidiaries and Joint Venture companies and transfer of share application money after issue of shares by the Subsidiary Companies.


Non-Current Loans are those loans which are expected to be realised after 12 months from the balance sheet 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 96.84 crore (Previous year 79.58 crore). The increase is mainly due to increase in loans of employees.

Other Financial Assets

Other Non-current Financial Assets includes Share application money pending allotment in subsidiaries and Bank Deposits with more than twelve months maturity. Other Non-current Financial Assets at the end of current year is 186.48 crore (Previous year 457.60 crore). The decrease is mainly due to transfer of share application money to investments after allotment of shares by the subsidiary companies.

Deferred Tax Assets (Net)

The net deferred tax assets decreased by 93.01 crore (current year 529.71 crore, previous year 622.72 crore). The decrease is mainly due to materialisation/use of deferred tax assets on account of MAT credit entitlement and temporary difference in carrying amount of PPE during the year. Net decrease in deferred tax assets amounting to 93.01 crore during the year has been debited to statement of profit and loss (previous year 161.91 crore).

Other Non-current Assets

Other non-current assets mainly consist of advance tax & tax deducted at source net off by provision for tax, Capital Advances given to Contractors and govt. deptt / organisations for capital works and deferred employee benefits expense etc. Other non- current assets at the end of Current Year are 559.96 crore (Previous year 249.26 crore).

2. Current Assets


As at March 31,

2022 2021
Inventories (Note 2.10) 62.66 56.15
Financial Assets
-Trade Receivables (Note 2.11) 575.03 522.96
-Cash and Cash Equivalents (Note 2.12) 17.24 40.60
-Bank Balances Other than cash and cash equivalents (Note 2.13) 2805.40 901.99
-Loans (Note 2.14) 47.13 20.87
-Others (Note 2.15) 482.36 734.66
Other Current Assets (Note 2.16) 132.67 148.10
Total 4122.49 2425.33

Current Assets as on March 31,2022 has increased by 69.98 % to 4122.49 crore (Previous year 2425.33 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 62.66 crore as on 31st March, 2022 (Previous year 56.15 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 52.07 crore to 575.03 crore (Previous year 522.96 crore). Trade receivable mainly includes an amount of 534.36 crore receivable from Jammu & Kashmir Power Corporation Limited (JKPCL). As per the arrangements between the company, banks and beneficiaries, the bills of beneficiaries amounting to 248.07 crore (previous year: 201.07 crore) have been discounted during the year. Accordingly, Trade receivables have been disclosed net off bills discounted.

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents

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

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents during the current year increased by 1880.05 crore to 2822.64 crore (Previous year 942.59 crore). The increase is mainly due to unutilised funds from External Commercial Borrowings and issue of Non-Convertible Debentures /Bonds.

Cash and Cash Equivalents & Bank Balances other than cash and cash equivalents are 68.47 % of current assets.


Current loans during the year have increased by 26.26 crore to 47.13 crore as on 31.03.2022 (Previous year 20.87 crore) mainly on account of providing interest bearing loan to subsidiary company.

Other Financial Assets

Other financial assets include interest accrued but not due on deposits with Banks, amount recoverable from Contractors & Suppliers, Unbilled Revenue and amount receivable from subsidiaries and joint ventures etc. Other financial assets decreased by 252.30 crore to 482.36 crore during current year (Previous year 734.66 crore). The decrease is mainly due to receipt of amount receivable for late payment surcharge from beneficiaries.

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 15.43 crore to 132.67 crore during current year (Previous year 148.10 crore).

Assets Held for Sale

Land and buildings which are unutilized and not yielded the appropriate returns have been classified as assets held for sale. The process of sale of these assets is under process and likely to be completed within next twelve months. The amount of assets held for sale as on 31st March, 2022 was 16.07 crore (Previous year nil).

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" as per 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, employee benefit expense on account of pay revision w.e.f. 01.01.2017, interest on arbitration awards etc. Regulatory deferral account debit balance at the year- end is 808.60 crore (Previous year 861.70 crore). The decrease is mainly due to receipt of tariff orders for O&M/security expenses pertaining to NJHPS and accordingly an amount of (94.11) crore has been adjusted as movement in regulatory deferral account balance.

Equity and Liabilities

1. Total Equity

Total Equity of the Company at the end of the financial year 2021-22 has increased to 13128.61 crore from 12761.84 crore in the previous year registering an increase of 2.87% as per details given


below: ( in Crore)

Particulars Total Equity
Opening Balance as on 01.04.2021 12761.84
Add: Profit for the year 977.52
Less: Other Comprehensive Income 1.63
Less: Dividend 609.12
Balance as on 31.03.2022 13128.61

The increase in total equity resulted in increase in the book value per share to 33.41 as at 31st March,2022 (Previous year 32.47 per share).

2. Liabilities Non-Current Liabilities

Financial Liabilities ( in Crore)

Particulars As at March 31,2022 As at March 31,2021
Borrowings (Note 2.21) 4796.95 1855.68
Lease Liabilities (Note 2.22) 5.83 9.17
Other Financial Liabilities (Note 2.23) 0.01 0.01
Provisions (Note 2.24) 106.34 96.58
Other Non-current Liabilities (Note 2.25) 729.39 751.99
Total 5638.52 2713.43


Total borrowings as on March 31,2022 inclusive of current maturities of long term borrowings were 5062.36 crore as against 2102.68 crore as on March 31, 2021. Current maturities of long term borrowings have been shown under current financial liabilities (Borrowings). Details of total borrowings are as under:

( in Crore)

Particulars As at March As at March
31,2022 31,2021
Non-current Borrowings (Note No 2.21) 4796.95 1855.68
Cu rrent matu rities of non-cu rrent borrowings included in current financial liabilities(borrowings) Note No.2.26 265.41 247.00
Total Borrowings 5062.36 2102.68

Borrowings excluding current maturities of long term debts have registered an increase of 158.50 % amounting to 2941.27 crore. Total non- current borrowings as on 31.03.2022 are 4796.95 crore (previous year 1855.68 crore). Details of non-current borrowings are as under:

Domestic Bonds/Debentures:

During the year, company has raised unsecured non-convertible bonds at par in full amounting to 1000 crore through private placement.

Rupee Term Loans:

Total outstanding rupee term loans drawn from domestic banks including current maturities as on 31.03.2022 were 297.68 crore (previous year 411.36 crore). These term loans are secured by equitable mortgage/hypothecation of all present and future fixed and book debts.

Foreign currency borrowings:

During the financial year 2021-22 the company has signed a loan agreement with PNB, Dubai for a loan facility of 500 million dollars. This loan will be utilised towards capital expenditure on ongoing /new Projects. Out of total loan an amount of 300 million dollars was drawn during the year. Total outstanding borrowings of PNB, Dubai was 2230.28 crore as on 31.03.2022 (previous year: nil) and outstanding foreign currency loan from world bank for financing RHPS as on 31.03.2022 was 1534.40 crore (previous year 1691.32 crore).

The debt-to-equity ratio (inclusive of Short-Term Borrowings and accrued interest) at the end of financial year 2021-22 of the company is 0.42 (previous year 0.17).

Lease and Other Financial Liabilities

The lease liabilities are on account of present value of leased rentals payable over the period of lease of assets taken on lease by the company. The lease liabilities have been measured at the present value of the remaining lease payments. Lease liabilities during the current year is 5.83 crore (Previous year: 9.17 crore).

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

Non-current Provisions

Non- current Provisions are on account of long term 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 9.76 crore to 106.34 crore during current year (Previous year 96.58 crore).

Other Non-current Liabilities

Other non-current liabilities include income received in advance (Advance against Depreciation (AAD), Government Grant and Deferred Foreign Currency Fluctuation Liability etc.

Other non-current liabilities have registered a decrease of 22.60 crore to 729.39 crore (Previous year 751.99 crore) mainly on account of amount of AAD transferred to other current liabilities as the same is adjustable in sales during next financial year.

Current Liabilities

Financial Liabilities ( in Crore)


As at March 31,

2022 2021
Borrowings (Note 2.26) 723.59 299.18
Lease Liabilities (Note 2.27) 6.31 8.80
Trade Payables (Note 2.28) 37.16 42.33
Other Financial Liabilities (Note 2.29) 699.35 462.96
Other Current Liabilities (Note 2.30) 50.13 77.53
Provisions (Note 2.31) 496.82 497.50
Total 2013.36 1388.30

The Current Liabilities as at March 31,2022 and 2021 were 2013.36 crore and 1388.30 crore respectively. The Current Liabilities have increased by 45.02 % mainly due to increase in Borrowings and Other Financial Liabilities.


During the year company has availed the bank overdraft and short term loan from banks to finance the short term fund requirements. Outstanding amount of short term loan from banks/overdraft as on 31.03.2022 was 458.18 crore (previous year 52.18 crore). Borrowings also include an amount of 265.41 crore (previous year 247.00 crore) being current maturities of long term debts payable within twelve months from the balance sheet date. Total outstanding balance of borrowings at the end of the year is 723.59 crore (previous year: 299.18 crore).

Lease Liabilities

Lease liabilities are on account of present value of leased rental assets rental payable with in next twelve months for assets taken on lease. Lease liabilities at the end of year is 6.31 crore (Previous year: 8.80 crore).

Trade Payables

Trade payables include 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 37.16 crore (Previous year 42.33 crore).

Other Financial Liabilities

Other Financial Liabilities mainly include Interest accrued but not due on loans, Liabilities for Employees Remuneration and Benefits, Liabilities for Purchase/Construction of Fixed Assets and Deposits, Retention Money from Contractors and Others. Other Current Liabilities have increased by 236.39 crore to 699.35 crore (Previous year 462.96 crore).

Other Current Liabilities

Other Current Liabilities mainly include current liability of Advance against Depreciation and Advance from customers etc. Other Current Liabilities at the year-end was 50.13 crore (Previous year 77.53 crore). The decrease is mainly due to decrease in advance from customers.


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 decreased by 0.68 crore in the F.Y. 2021- 22 to 496.82 crore (Previous year 497.50 crore).


The following are the components of claims against the company not acknowledged as debt: ( in Crore)

Particulars As at 31.03.2022 As at 31.03.2021
Capital Works 670.76 536.38
Land Compensation 25.06 25.06
Disputed Income Tax Demand 10.48 12.46
Guarantees 195.00 ---
Others 249.04 201.09
Total 1150.34 774.99

Contingent Liabilities increased by 375.35 crore to 1150.34 crore as of March 31,2022(Previous year 774.99 crore) mainly on account of increase in contingent liabilities relating to capital works and corporate guarantee for a loan drawn by a subsidiary company.


1. Subsidiary Companies

Company has three wholly owned subsidiary companies as at 31.03.2022. Presently all 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 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 paid up equity share capital as on 31st March, 2022 is 2511.68 crore (Previous year 1896.68 crore). Total Assets as on 31st March, 2022 is 4376.54 crore (Previous Year: 2605.97 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 2714.35 crore (NPR 4342.96 crore). Presently the company is executing the 900MW 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 31st March, 2022 is 2105.41 crore (Previous Year 1360.67 crore). Total Assets as on 31st March, 2022 is 2850.42 crore (Previous Year 1698.64 Crore).

SJVN Green Energy Ltd.

SJVN Green Energy Limited (SGEL) was incorporated in India on 30.03.2022 with authorised share capital of 50 crore. The purpose of formation of SGEL is to have a focussed approach for expanding the renewal energy portfolio of SJVN group. Thus, contributing in the Govt. of Indias target of 500GW of renewable power by 2030.

2. Joint Venture Companies

As at 31.03.2022, 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 Electric Project on the river Kholongchhu, Bhutan which is in construction stage. SJVN has invested an amount of 240.43 Crore as on 31.03.2022 (Previous Year 190.43 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 12.61 crore (Previous Year 12.61 crore) in the joint venture. The total income and PAT during the year 2021-22 are 34.48 crore (previous year 33.43 crore) and 17.26 Crore (previous year 15.19 crore) respectively.


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 Ventures, Ind AS112- ‘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 by using the Equity Method of Accounting.

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

( in Crore)

F.Y. 2021-22 F.Y. 2020-21
Total Revenue 2634.78 3222.84
Profit before Tax 1359.82 1856.41
Profit after Tax 989.80 1645.72
Other Comprehensive Income (net of tax) (1.63) (1.66)
Total Comprehensive Income 988.17 1644.06
For and on behalf of Board of Directors
(Nand Lal Sharma)
Chairman and Managing Director
Date: 12th August, 2022 DIN: 03495554
Place: Shimla