annual report 2013-14bhavini.nic.in/writereaddata/annualreport/29.pdfthe absorber drive mechanisms...

11th Annual Report

2013-14

BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (A Government of India Enterprise)

Contents

Items Page Nos.Board of Directors & Company Information 1Chairman & Managing Director’s Statement 2Directors’ Report 3Auditors’ Report to the Members 15Accounts for the year 2013 – 2014 18Comments of the C & AG 32

Corporate Mission

“To plan, execute and operate an integrated programme of Fast Breeder Technology based Nuclear Power Stations

as a safe, environmentally benign and economically viable source of electrical energy”

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BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

BOARD OF DIRECTORS

Dr. Prabhat Kumar Chairman & Managing Director

Dr. C.B.S. Venkataramana Director

Shri Sekhar Basu Director

Dr. P.R. Vasudeva Rao Director

Dr. Somit Dasgupta Director

Smt. Rajani Sankaran Director (Finance)

CS. V. ViswanathanCompany Secretary

Registered Office: No. 51, Montieth Road, Egmore, Chennai – 600 008

Corporate & Project Office: Project Station Building, Kalpakkam – 603 102 Kancheepuram Dist. Tamil Nadu

Website: www.bhavini.nic.in

Main Banker: State Bank of India

Statutory Auditors: M/s. V. Soundararajan & CoChartered AccountantsGround Floor – Rear “Emerald Estate” New No. 6/3, Second Canal Cross RoadGandhi Nagar, Adyar, Chennai – 600 020

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CHAIRMAN & MANAGING DIRECTOR’S STATEMENT

Dear Members,

I welcome you all to the 11th Annual General Meeting of your Company.

It gives me immense pleasure to inform you that the project activities are at its peak and about 97.63% physical progress has been achieved. This high technology reactor is expected to attain criticality in the current financial year.

Harmonious employee relationship has prevailed in the Project. Not a single man-day was lost due to industrial unrest of any kind.

Continuous efforts are on to ensure transparency in all dealings. The Company has been responding to all the RTI related queries.

In the changed and challenging environment, your Company is very much conscious of its social obligations and doing its best to improve the quality of life of the people residing in the neighbourhood by carrying out various social programmes mainly focusing on Education & Skill Development, Human Health care & Animal Welfare, Rural Development and Environment Management.

Atomic Energy Commission (AEC) has issued Guidelines inter-alia on Corporate Governance in the year, 2009. Considering the importance of Corporate Governance, BHAVINI (a non-listed CPSE) generally complies with the Corporate Governance guidelines issued by AEC.

I would like to express my sincere gratitude to the Department of Atomic Energy, various other Ministries and Departments of the Government of India, Planning Commission, Atomic Energy Regulatory Board for their support. I would also like to place on record the excellent support extended by Indira Gandhi Centre for Atomic Research, Nuclear Power Corporation of India Limited, Bhabha Atomic Research Centre, Nuclear Fuel Complex, Heavy Water Board, Electronics Corporation of India Limited and other units of Department of Atomic Energy in the implementation of PFBR. I am thankful to the Auditors, the Comptroller and Auditor General of India for their services and valuable advice.

I express my sincere thanks to Directors on the Board, each and every employee, supporting industries, consultants and other stakeholders of your Company.

Sd/- Place : Chennai (Dr. Prabhat Kumar)Date : 22nd September 2014 Chairman & Managing Director

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DIRECTORS’ REPORT

Dear Members,

Your Directors are pleased to present the Eleventh Annual Report, together with the Audited Financial Statements for the year ended 31st March 2014.

PROJECT PROGRESS:

Prototype Fast Breeder Reactor is in the verge of construction completion and has leaped into commissioning phase.

Supply and erection of all major critical reactor components have been completed. Core sub-assembly handling machine such as Transfer Arm and Inclined Fuel Transfer Machine have been erected and tested successfully in reactor. Control Plug which houses the absorber drive mechanisms and Primary Sodium Pump that transfers heat from fuel to coolant have been received and erected in the reactor. High temperature boron coated neutron detectors required for initial fuel loading operation has been received and erected in control plug. Further neutron detector for reactor startup and high temperature operation are in advanced stage of manufacture. A few flasks are yet to be supplied. These are expected to be received shortly.

Major heat transport system components such as two nos. of Secondary Sodium Pumps and its drive motors, four nos. of Intermediate Heat Exchangers have been erected. Erection of 4 nos. of sodium to air heat exchangers of safety grade decay heat removal system has been completed.

Electrical power supply systems like 415V switchgear, no break 48V DC battery power supply, no break 220V un-interrupted power supply have been commissioned and are in operation. Commissioning of the 6.6kV equipments are in the final closure phase.

Most of the equipment have been commissioned locally from local control panels. Fuel handling equipments commissioning from control room console is under progress. Commissioning of switchgear

interface programmable logic controllers has been completed. Pre-commissioning of all Main control room, Handling control room, Local control panels have been completed.

Erection of turbine and its auxiliary equipment have been completed and a major milestone of turbine rolling on barring gear has been achieved. Auxiliary boiler light up and steam blowing activities have been completed.

For the intake structure, the excavation of offshore shaft and horizontal tunnel has been completed. Lining concrete in horizontal tunnel have also been completed. The horizontal sea water intake tunnel and vertical shaft of the tunnel have been connected.

Commissioning of the conventional and auxiliary supporting systems of reactor has been completed and auxiliary supporting systems such as water, air and gas systems are being operated on round the clock basis. Commissioning of Integrated secondary sodium system first loop in Steam Generator Building-1, which consists of seven sodium piping circuits has commenced and pressure hold test of argon lines has been completed successfully. Preheating of the main vessel by air has been completed. Reactor containment building has been pressurized up to 250mbar and preliminary leak test has been done. Based on the results of leak test, grouting of containment structure has been done.

With the above, the project is getting poised for sodium addition and integrated commissioning. The physical progress as on end of August 2014 is 97.63%.

FBR 1 & 2 Pre-Project Activities:

Site selection committee constituted by DAE has approved Kalpakkam site for FBR 1&2. BHAVINI has completed the “Environmental Impact Assessment” studies in line with the directives given by the Ministry of Environment and Forest (MoEF) while approving the Terms of Reference (ToR) for Environmental Impact Assessment studies. Based on further review by MoEF, one month additional data has been collected.

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BHAVINI has prepared the siting consent document and submitted to AERB for ‘siting clearance’.

BHAVINI has approached Tamil Nadu Pollution Control Board for clearance of FBR 1&2. BHAVINI is also planning to arrange public hearing in the near future and will seek MoEF clearance subsequently for FBR 1&2 at Kalpakkam.

FINANCIAL PROGRESS:

a) During the year 2013-14; ̀ 342.05 Crores was drawn as equity. The total equity drawn till 31st March 2014 is ̀ 4529.57 Crores. The details of equity drawn are as under:

(` in Crores)

PeriodPFBR FBR-

1&2 TotalGoI * NPCIL ** Total GoI

Upto 2012-13 4052.52 120.00 4172.52 15.00 4187.52

During 2013-14 262.00 52.45 314.45 27.60 342.05

Upto 2013-14 4314.52 172.45 4486.97 42.60 4529.57

* GoI – Government of India

** NPCIL – Nuclear Power Corporation of India Ltd.

b) The total cash expenditure upto March 2014 is ` 4545.30 Crores and includes ̀ 477.40 Crores spent during the year 2013-14. The details of expenditure are as under:

(` in Crores)

Period PFBR FBR-1&2 Total

Upto 2012-13 4060.06 7.84 4067.90

During 2013-14 477.11 0.29 477.40

Upto 2013-14 4537.17 8.13 4545.30

c) Value of assets capitalised (net of deduction/adjustments/deletion) from inception ti l l 31st March 2014 is ` 282.01 Crores, which includes ` 25.09 Crores of the Fixed Assets capitalized during the year.

d) Value of Capital Work in progress as on 31st March 2014 is ` 4115.54 Crores, which includes ` 101.86 Crores spent during 2013-14 as “expenditure during construction, pending allocation”.

DIRECTORS:

Dr. Somit Dasgupta, Advisor (Power), Planning Commission has been appointed as Part-time Director w.e.f. 25th June 2014. Board welcomes him.

Shri V.R. Sadasivam superannuated on 31st December 2013 from the post of Additional Secretary, DAE and relinquished the post of Director of BHAVINI as his tenure was co-terminus with his services in DAE. Shri I.A. Khan, Adviser (Energy), Planning Commission, superannuated on 31st January 2014 and relinquished the post of Director in BHAVINI as his tenure was co-terminus with his services in Planning Commission. Shri Apparao Verelli, Director, Ministry of Power relinquished the office of Director on the BHAVINI Board w.e.f. 4th July 2014 consequent upon his transfer from Ministry of Power. Shri T.K. Mitra relinquished charge of Director (Technical), BHAVINI on 31st July 2014 consequent to his superannuation.

Board places on record its appreciation for their valuable contributions.

HUMAN RESOURCES:

As per policy, for implementation of PFBR, Fast Reactor Technological expertise of IGCAR and the management skills of NPCIL in the construction of Nuclear Power Plants are to be synthesized. Accordingly, 8 officials from IGCAR/Govt., and 19 officials from NPCIL were posted in BHAVINI for construction of PFBR as on 31st March, 2014. In addition, 39 NPCIL officials and 2 IGCAR officials were absorbed permanently in BHAVINI. Total Manpower as on 31st March, 2014 was 408 which include 340 officials directly recruited on the rolls of BHAVINI.

SC/ST/OBC reservation policies are being complied with and development of SC/ST personnel is being given paramount importance. The overall representation of the SC, ST & OBC personnel is as follows:

GROUPTotal No. of Employees

No. of SC Employees

No. of ST Employees

No. of OBC Employees

A 182 31 2 50

B 104 18 4 52

C 122 30 1 57

TOTAL 408 79 7 159

% 100% 19.36% 1.72% 38.97%

BHAVINI has been awarded with “Best Employer Brand Organisation Award (Power)” by Asia Pacific HRM Congress.

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PARTICULARS OF EMPLOYEES:

Pursuant to the provisions of Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 as amended, it is hereby informed that none of the employees of the Company was in receipt of remuneration ̀ 5 lakhs p.m. or ` 60 lakhs p.a. during the year.

INDUSTRIAL RELATIONS:

During the year, the Industrial Relations at the Project Site were peaceful and cordial.

IMPLEMENTATION OF OFFICIAL LANGUAGE POLICY:

BHAVINI fully complies with the Government of India directives on implementation of Rajbhasha, “Hindi”. BHAVINI has been relentlessly making all efforts towards continuous improvements in the progressive use of Official Language. Official Language Implementation Committee (OLIC) exists in BHAVINI for effective implementation of the Official Language Policy of the Government of India. The Committee ensures the compliance of Official Language Act and Annual Programme issued by the Department of Official Language, Govt. of India. Hindi Workshops were also regularly organized to encourage the officers/employees of BHAVINI to do their official work in Hindi and allay their apprehensions regarding use of the language.

Hindi Training programme under Hindi Teaching scheme was organized. Hindi Fortnight was celebrated in the month of September and on 10th of January 2014 Hindi talk on various subjects were also organized. MoU, Demand for Grant, Parliamentary Questions, Outcome Budget, Annual Report etc, are prepared in Hindi. Hindi version of BHAVINI website www.bhavini.nic.in is also updated regularly. Hindi house journal “Parmanu Vani” was published. 15 officials have been trained in Hindi typing and they are encouraged to do their official work in Hindi.

SOCIAL WELFARE INITIATIVES:

BHAVINI being a responsible corporate entity is conscious of its social obligations and sensitive to the needs of the people residing in the neighbourhood. BHAVINI is trying to improve the quality of life of people by carrying out various social welfare programmes mainly focusing on Education & Skill Development, Human Health care & Animal Welfare, Rural Development and Environment Management.

The requests of local villagers are scrutinized by personal visit of the Neighbourhood Development Committee of BHAVINI. The recommended activities carried out / taken up during the period 2013-14 are as follows:

a) Construction of net storage building for fishermen at Meiyurkuppam in Sadras Panchayat.

b) Construction of net storage building for fishermen at Salavankuppam in Pattipulam Panchayat.

c) Construction of Anganwadi building at Erular Colony in Manamai Panchayat.

d) Renovation of noon meals preparation shed for Government higher secondary school at Sadras in Sadras Panchayat.

e) Providing & Fixing of Children Play Equipments for Vengampakkam Village.

f) Providing & Fixing of Children Play Equipments for Kariaseri Village.

g) Providing & Fixing of Volley ball court yard for Vengampakkam & Kariaseri Village.

h) Providing & Fixing of Volley ball court yard for Neikuppi & Vayalur Villages.

i) Issuing of Mult imedia Projector for our Neighbourhood village school.

j) Cleaning & creating hygienic environment to the neighbourhood villages.

k) Providing & supplying of Tricycle for Physically handicapped persons in our neighbourhood villages.

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l) Providing & laying of water supply line works at Chinna Colony in Vittilapuram Panchayat.

Further, BHAVINI is also participating in DAE programmes and welfare activities such as outreach programmes, vocational training to educate unemployed youth, community Radio Station – voice for the voiceless, medical camps, empowering women by creating women self help groups, supporting mentally challenged children and providing saplings to the neighbourhood for environmental protection.

THE RIGHT TO INFORMATION ACT, 2005:

The RTI Act is fully implemented in BHAVINI and as per the provisions of the Act, the Information required to be published is uploaded in the BHAVINI official web site and its relevant parts of section IV of the Act are updated. The quarterly and yearly status report is being updated in the RTI portal regularly as a mandatory requirement.

As per the provisions of the Act, One Appellant Authority, One Central Public Information Officer and One Assistant Public Information Officer are functioning at BHAVINI.

Ten requests were received directly to BHAVINI and Twenty One requests were received on transfer from other departments during the year 2013-14 under the Act. All the requests have been replied in prescribed time. No appeal has been received by Appellant Authorities. No case was referred to CIC during this period.

VIGILANCE:

BHAVINI relentlessly strived towards evolving a culture of honesty, purity and transparency in the organization, integrating the system of vigilance with business. A high degree of ethics is being instilled amongst the officers and staff of the Company to attain values such as honesty, purity, integrity and transparency.

Surprise as well as regular inspections were carried out by Vigilance Officials.

The contact details of Chief Vigilance Officer and other vigilance functionaries are made available in the separate notice boards at plant site, Registered office and on BHAVINI website.

CONSERVATION OF ENERGY:

a) Energy conservation measures taken:

i) Company’s first project, PFBR is in advanced stage of commissioning. Design and engineering has taken adequate measures to implement energy conservation at the construction, Commissioning stage and later on during plant operation.

ii) Maximising use of daylight and modification of lighting system using energy efficient lamps have helped us in an endeavour of energy conservation.

b) Additional investments and proposals for reduction of consumption of energy:

Energy audit recommendations are being implemented at regular intervals.

c) Impact of measures at (a) and (b) above for reduction of energy consumption:

Higher energy conservation awareness has yielded positive results, which includes:

i) As per the conventional practice, the capacity test of lead acid battery banks have to be carried out by discharging the battery current through water load there by energy is wanted in the form of heating the water. We have already carried out capacity test 18 set of battery banks of different capacities with the electronic regenerative battery discharge unit, this unit used to discharge the battery to the grid source. In addition to the above another set of battery banks (2 x 645 AH) discharge test carried out through ERBDU, which has saved considerable energy consumption.

ii) As per post Fukushima event safety committee recommended that solar panel lighting to be installed on the safety related buildings. Accordingly 10KW in Electrical Building – 1 and

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5KW in Electrical Building – 2 and 3 KW grid standalone solar power generation panel are being erected.

iii) In the main canteen building solar water heater installed which is generating steam pressure of 5bar, this steam is using for preparation of food items in canteen. There by we are saving considerable amount of energy.

iv) Energy saving awareness stickers (Switch off the electrical utilities before leaving the work spot) have been placed in various official rooms & at PFBR Site.

v) Segregation of lights in office rooms is being implemented.

vi) High – mast lights, group lighting control is being adopted.

vii) Optimized usage of crane operation in SAS/NICB.

viii) Corridor lightings switched off during 7 AM to 6 PM by duty security staff in the Project station building, old admin building and Simulator building.

FOREIGN EXCHANGE EARNINGS AND OUTGO:(` in crores)

2013-14 2012-13

Foreign Exchange Earning NIL NIL

Foreign Exchange Outgo 1.21 27.87

CORPORATE GOVERNANCE:

A compliance report on Corporate Governance is given as Annexure - A. Compliance of Guidelines issued by Atomic Energy Commission has been verified and certified by Shri G.P. Venkateswaran, Practicing Company Secretary. A copy of certificate is annexed to this report as Annexure - B.

MANAGEMENT DISCUSSION AND ANALYSIS:

Global Nuclear Power Scenario:

Commercial nuclear power generation in the world is a mature, established technology, having accumulated over forty years of successful operation.

Nuclear Power – Safe and Environmentally Benign:

Nuclear power is a clean, environmentally benign, devoid of Green House Gas emissions and economically viable source of power generation. During nuclear power generation, a small quantity of radioactive waste is generated which is treated, immobilized in glass / cement matrix and safely stored, thus the environment and public remains unaffected.

Role of Nuclear Power and Potential in India:

India’s nuclear power programme has three stages with an objective to utilize modest uranium and large thorium reserves in the country for electricity generation. The first stage is based on Pressurised Heavy Water Reactors (PHWRs), using natural uranium as fuel. This stage yields plutonium, which forms the basis of development of second stage, using plutonium along with depleted uranium / thorium in Fast Breeder Reactors (FBRs). This stage yields more plutonium. In the third stage, advanced power reactors based on Uranium-Thorium cycle are envisaged for deployment.

Nuclear energy offers the most potent solution to long-term energy security. India has to successfully realize the three-stage development programme and thereby tap its vast thorium resources to become truly energy independent beyond 2050. The commercial deployment of thorium requires a significant capacity of FBRs and development of technologies for thorium utilization.

Challenges:

Nuclear Power is inherently a high technology enterprise and that is the fundamental reason for not many countries having it.

Although the inevitability of nuclear energy in energy mix is now universally accepted, there exist some associated challenges. These emerge mainly from the public perception of risks associated with nuclear power, which are disproportionately higher than the actual risks. These include safety, radio-active waste management, costs and other perceived risks like

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effects on health, security and proliferation. BHAVINI has undertaken structured public awareness and communication campaigns and outreach activities to disseminate authentic information about safety, radiation and other related aspects of nuclear power in a transparent manner to various groups.

The availability of infrastructure for supply-chain and project execution, sites, human resource and investments are the other key challenges in implementation of the programme.

Outlook:

Fossil fuel resources are not renewable, the worldwide energy mix of today will prove to be unsustainable. Therefore, industry experts are supporting increased adoption of nuclear and renewable energy as well as increased use of energy efficiency techniques.

India has ambitious plan to generate electricity through nuclear reactors and rapid nuclear power capacity addition as the Government is facilitating. Robust outlook for BHAVINI is consequent to success in PFBR and Government plan for expansion of nuclear energy.

MoU Performance:

Department of Public Enterprises awarded ‘Very Good’ MoU rating for the year 2012-13. The expected MoU rating for the year 2013-14 is also in ‘Very Good’ Category.

Risk Management:

Management team identifies key risk areas and formulates appropriate risk mitigation plans for taking corrective action in a time bound manner.

Internal Control System and their adequacy:

The Company has adequate internal control system commensurate with the nature and size of business which meets the objectives of efficient use and safeguarding of resources, compliance with statues, policies and procedures and maintaining accuracy of recording of transaction and reporting the same

promptly. The scope of internal audit involves examination and evaluation of the adequacy and effectiveness of the system of internal accounting, system and procedures. The observations raised out of the audit are subject to periodic review by Audit Committee.

DIRECTORS’ RESPONSIBILITY STATEMENT:

The Directors confirm:

a) that in the preparation of the annual accounts, the applicable accounting standards have been followed, along with proper explanation relating to material departures;

b) that they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit or loss of the Company for that period;

c) that they have taken proper and sufficient care for the maintenance of adequate accounting records, in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

d) that they have prepared the annual accounts on a going concern basis.

OBSERVATIONS OF AUDITORS:

a) Observations of the Statutory Auditors:

The Directors inform the Stakeholders with pleasure that for the 11th successive year, this year also there is no qualification in the report of the Statutory Auditors on the accounts of the Company for the year ended 31st March 2014.

b) Comments of the Comptroller & Auditor: General of India:

Principal Director of Commercial Audit and Ex-Officio Member Audit Board-IV, New Delhi,

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For and behalf of Board of Directors

Sd/-(Dr. Prabhat Kumar)

Chairman & Managing Director

Place: ChennaiDate : 22nd September 2014

after conducting a supplementary audit, on the financial statements for the year ended 31st March 2014, under Section 619(3) (b) of the Companies Act 1956, has conveyed, vide their letter No. 274-PDCA/HS/MAB-IV/A/cs/BHAVINI/14-15/392 dated 1st September 2014 that “Based on my supplementary 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”. This is the 11th successive year that a ‘Nil’ comment report has been received.

APPRECIATION:

The Board would like to express its gratitude to the Department of Atomic Energy, various other Ministries/Departments of the Government, Planning Commission and Atomic Energy Regulatory Board for their support. The Board of Directors would also like to place on record with gratitude for the excellent support provided by Indira Gandhi Centre for Atomic Research, Nuclear Power Corporation of India Limited, Heavy Water

Board, Bhabha Atomic Research Centre, Nuclear Fuel Complex, Electronic Corporation of India Limited and other units of DAE and Indian Industries and consultants for implementation of PFBR. The Board would further like to place on record its appreciation for the services rendered by Auditors. Board acknowledges support extended by, Press and Media in conveying balanced view on PFBR activities. Board further acknowledges the continuous optimal support to BHAVINI by the neighbouring villages.

The Board wishes to express its special appreciation of hard work put in by each and every employee of the Company which gives confidence that the PFBR Project can be built and commissioned within the targeted schedule.

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1. COMPANY’s PHILOSOPHY ON CORPORATE GOVERNANCE:

BHAVINI’s business philosophy upholds the highest standard of Corporate Governance in its operations. The management of the Company believes that strong and sound Corporate Governance is an important instrument for the protection of stakeholders and good Corporate Governance practices would enable her to face the challenges of growth effectively and successfully.

2. BOARD OF DIRECTORS

Presently Board comprises Chairman & Managing Director, one whole time Director and four Part-time Directors. All Directors are professionals and have wide experience in their respective fields. A brief resume of the present Directors are available at the Company’s website.

Four Meetings of Board of Directors have been held during the year 2013-2014 on 28th June 2013, 3rd September 2013, 9th December 2013 and 15th March 2014. A table showing the composition of the Board and the attendance of the members of the Board at Board Meetings and Annual General Meeting held during the year is given below:-

Annexure – A

REPORT ON CORPORATE GOVERNANCE

Sl. No NameDirector Identification

NumberMeeting Attended

Attendance at the last AGM (3/9/2013)

No. of other Directorship

1 Dr. Prabhat Kumar, CMD 00001683 4 Yes None

2 Dr. C.B.S. Venkataramana 03179171 4 Yes 1

3Shri V.R. Sadasivam (tenure upto 31.12.2013)

01734028 2 Yes 4

4 Shri Sekhar Basu 06411329 3 Yes 1

5 Dr. P.R. Vasudeva Rao 06533375 3 Yes None

6Shri I.A. Khan (tenure upto 31.1.2014)

06408427 2 Yes 1

7Dr. Somit Dasgupta (w.e.f. 25.6.2014)

06907944 NA NA 1

8Shri Apparao Verelli (tenure upto 3.7.2014)

03587956 1 Yes None

9Shri T.K. Mitra, Director (Technical) (tenure upto 31.7.2014)

03309428 4 Yes None

10Smt. Rajani Sankaran, Director (Finance)

06401923 4 Yes None

l Present Directors under Sl. No. 2 is Part-Time Government Director; under Sl. No. 4, 5 & 7 are Part-Time Official Directors.

lNone of the Directors is a member in more than 10 committees or acts as Chairman of more than five committees across all the companies in which he is a Director. Committees here mean Audit Committee & Shareholder’s Grievance Committee only.

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l The Board has constituted the following Committees:-

v Audit Committee

v B o a rd S u b - C o m m i tte e ( C o nt ra c t s & Purchases)

v Share Allotment & Transfer Committee

v B o a rd S u b - C o m m i tte e o n Re s o u rc e Mobilisation

3) AUDIT COMMITTEE:

Presently Audit Committee comprises of three Part – time Directors. All are experienced professionals and have fair financial knowledge. Director (Finance), Statutory Auditors & Internal Auditors are invitees.

Four Meetings of Audit Committee have been held during the year 2013-2014 on 27th June 2013, 2nd September 2013, 26th December 2013 and 15th March 2014. A table showing the composition of the Audit Committee and the attendance of the Members of the Audit Committee at its Meetings held during the year is given below:-

Sl. No.

NameNo. of Meetings

attended

1 Shri Sekhar Basu, Chairman 2

2 Dr. P.R. Vasudeva Rao 4

3 Shri V.R. Sadasivam (tenure upto 31.12.2013)

3

4 Shri Apparao Verelli (w.e.f. 15.3.2014 to 3.7.2014)

1

5 Dr. C.B.S. Venkataramana (w.e.f. 4.7.2014)

NA

Brief Terms of Reference of Audit Committee:

a. Oversight of the company’s financial reporting process and the disclosure of its financial information to ensure that the financial statement is correct, sufficient and credible.

b. Recommending to the Board the fixation of audit fees.

c. Approval of payment to statutory auditors for any other services rendered by the statutory auditors.

d. Reviewing, with the management, the annual financial statements before submission to the Board for approval, with particular reference to:

i. Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s report in terms of clause (2AA) of section 217 of the Companies Act, 1956.

ii. Changes, if any, in accounting policies and practices and reasons for the same;

iii. Major accounting entries involving estimates based on the exercise of judgment by management.

iv. Significant adjustments made in the financial statements arising out of audit findings;

v. Compliance with legal requirements relating to financial statements.

vi. Disclosure of any related party transactions; and

vii. Qualifications in the draft audit report.

e. Reviewing, with the management, the quarterly financial statements before submission to the Board for approval.

f. Reviewing, with the management, performance of internal auditors and adequacy of the internal control systems.

g. Reviewing the adequacy of internal audit function, if any, including the structure of the internal audit department, staffing and seniority of the official heading the department, reporting structure coverage and frequency of internal audit.

h. Discussion with internal auditors and / or auditors any significant findings and follow up thereon.

i. Reviewing the findings of any internal investigations by the internal auditors / auditors / agencies into matters where there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.

j. Discussion with statutory auditors before the audit commences, about the nature and scope of audit as well as post-audit discussion to ascertain any area of concern.

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k. To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of non payment of declared dividends) and creditors.

l. To review the functioning of the Whistle Blower Mechanism.

m. Carrying out any other function as is mentioned in the terms of reference of the Audit Committee.

n. To review the follow up action on the audit observations of the C&AG audit.

o. To review the follow up action taken on the recommendations of Committee on Public Undertakings (COPU) of the Parliament.

p. Provide an open avenue of communication between the independent auditor, internal auditor and the Board of Directors.

q. Review and pre-approve all related party transactions in the company. For this purpose, the Audit Committee may designate a member who shall be responsible for pre-approving related party transactions.

r. Review with the independent auditor the coordination of audit efforts to assure completeness of coverage, reduction of redundant efforts, and the effective use of all audit resources.

s. Consider and review the following with the independent auditor and the management.

The adequacy of internal controls including computerized information system controls and security, and related findings and recommendations of the independent auditor and internal auditor, together with the management responses.

t. Consider and review the following with the management, internal auditor and the independent auditor:

- Significant findings during the year, including the status of previous audit recommendations

- Any difficulties encountered during audit work including any restrictions on the scope of activities or access to required information.

4) BOARD SUB-COMMITTEE (CONTRACTS & PURCHASES):

This Sub-Committee is entrusted with the responsibility of approving the Contracts & Purchases for the Company, which are above the delegated powers to Chairman & Managing Director but upto the limit of ` 100 Crores.

Four Meetings of Board Sub-Committee (Contracts & Purchases) have been held during the year 2013-2014 on 11th June 2013, 28th June 2013, 3rd September 2013 and 17th March 2014. A table showing the composition of the Board Sub-Committee (Contracts & Purchases) and the attendance of the Members of the Committee at its Meetings held during the year is given below:-

Sl. No.

Name No. of Meetings attended

1 Dr. Prabhat Kumar, CMD 4

2 Dr. C.B.S. Venkataramana 4

3 S h r i V. R . S a d a s i v a m (tenure upto 31.12.2013)

3

4 Shri T.K. Mitra, Director (T) (tenure upto 31.7.2014)

3

5 Smt. Ra jan i Sankaran, Director (F)

4

5) SHARE ALLOTMENT AND TRANSFER COMMITTEE:

This Committee considers the allotment and transfer of shares and issuance of share certificates and other matters incidental thereto. The Committee met twice during the financial year on 9th December 2013 and 17th March 2014. Presently this committee comprises of:-i) Dr. Prabhat Kumar, CMD Chairmanii) Dr. C.B.S. Venkataramana Member

6) BOARD SUB-COMMITTEE ON RESOURCE MOBILIZATION:

Board at its 27th Meeting held on 8th May, 2009 has constituted Board Sub-Committee on Resource Mobilization to oversee and decide the borrowings on its behalf. Presently this committee comprises of:-i) Dr. Prabhat Kumar, CMD Chairmanii) Dr. C.B.S. Venkataramana Memberiii) Smt. Rajani Sankaran, Director (F) Member

13


7) TRAINING OF DIRECTORS:

The Board of Directors consists of CMD, Director (Finance) and part-time Directors from DAE, BARC, IGCAR, Planning Commission and other Ministries of Central Government. The Directors possess requisite knowledge relating to the functioning of the Company, their Rights, Duties and Liabilities. Site visits are organized regularly for the Directors to update the developments.

8) DISCLOSURES:

The Company has not entered into any materially significant transactions, during the year 2013-14 with Promoters, Directors, Senior Management personnel etc., other than the transactions, if any entered into, in the normal course of Company’s business.

Report on Statutory Compliances are placed before the Board annually. No penalties, strictures imposed on the Company by any statutory authority on any matter related to any guidelines issued by Government of India.

It is confirmed that no Presidential directives have been issued by the Central Government during the financial year.

It is confirmed that items of expenditure debited in books of accounts are for the purpose of the business only except amount spent on corporate social responsibility activities.

It is confirmed that no personnel has been denied access to the Audit Committee.

9) MEANS OF COMMUNICATION:

The Company’s website (www.bhavini.nic.in) provides information on the Company and its performance.

Matters of interest to employees are circulated internally through intranet in the form of Notices, Office Orders and Circulars.

Company’s first project is under construction. Entire shareholding of the Company is held by President of India and Nuclear Power Corporation of India Limited. Hence, publication of financial results is not applicable.

10) AUDIT QUALIFICATION:

For the 11th successive year, this year also there is no audit qualification / comment in the Report of the Statutory Auditors / Supplementary Audit Report of Comptroller and Auditor General of India on the accounts of the Company for the year ended 31st March 2014.

11) RISK MANAGEMENT – FRAUD PREVENTION POLICY (WHISTLE BLOWER POLICY):

Guidelines on Corporate Governance (para 6.3.2) issued by Department of Public Enterprises (DPE) requires that the Board should implement policies and procedures which should include:-

(a) Staff responsibilities in relation to fraud prevention and identification

(b) Responsibility of fraud investigation once a fraud has been identified

(c) Process of reporting of fraud related matters to management

(d) Reporting and recording process to be followed to record allegations of fraud

(e) Requirements of training to be conducted on fraud prevention and identification.

Accordingly BHAVINI has framed Risk Management – Fraud Prevention Policy which is in force w.e.f. 15th January, 2008. The said policy has been posted in the website of the Company.

12) CODE OF CONDUCT:

The Board of Directors has laid down a Code of Conduct for the Board Members and Senior Management personnel of the Company. A copy of the code is available on the website of the Company.

All the members of the Board and Senior Management Personnel have affirmed compliance of the Code of Conduct for the financial year ended on March, 31, 2014.

14


I have examined the compliance of the conditions of Corporate Governance by Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31st March 2014 as stipulated in the Guidelines for Bharatiya Nabhikiya Vidyut Nigam Limited issued by the Atomic Energy Commission in 2009.

The compliance of the conditions of Corporate Governance is the responsibility of the management. My examination was limited to review of the procedures and implementation thereof, adopted by the Company for ensuring the compliance with the conditions of the Corporate Governance recommended by the Atomic Energy Commission in their Guidelines. It is neither an audit nor an expression of opinion on the financial statements of the Company.

In my opinion and to the best of my information and according to the explanation given to me and the representation made by the management, I certify that the Company has generally complied with

conditions of Corporate Governance to the extent possible as stipulated by Atomic Energy Commission in the Guidelines for Bharatiya Nabhikiya Vidyut Nigam Limited issued in 2009 but for the recommendation regarding appointment of independent Directors on the Board. We further certify that the company has complied with the requirements of the Companies Act, 1956 and Companies Act, 2013 to the extent applicable.

I further state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency with which the management has conducted the affairs of the Company.

Sd/- G.P. Venkateswaran Company Secretary F.C.S. 1208 C.P. 1746Place: ChennaiDate: 7th July 2014

Annexure – B

CERTIFICATE OF THE COMPANY SECRETARY IN PRACTICE ON CORPORATE GOVERNANCE

To,

The Members,Bharatiya Nabhikiya Vidyut Nigam Limited,No. 51, Montieth Road, Egmore, Chennai – 600 008

15


AUDITORS’ REPORT

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Unqualified Opinion:

In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014; and

b) in the case of the Statement of Profit and Loss, of the profit for the year ended on that date;

Report on Other Legal and Regulatory Requirements:

1. As required by the Companies (Auditor’s Report) Order, 2003 (“the Order”) issued by the Central Government of India in terms of sub-section (4A) of section 227 of the Act, we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

2. As required by section 227(3) of the Act, we report that:

a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) The Balance Sheet and the Statement of Profit and Loss dealt with by this Report are in agreement with the books of account;

To

The Members Bharatiya Nabhikiya Vidyut Nigam Limited

Report on the Financial Statements:

We have audited the accompanying financial statements of Bharatiya Nabhikiya Vidyut Nigam Limited (“the Company”), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements:

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position and financial performance of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 (“the Act”). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility:

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that

16


d) In our opinion, the Balance Sheet and the Statement of Profit and Loss comply with the Accounting Standards referred to in subsection (3C) of section 211 of the Companies Act, 1956;

e) Being a Government Company, pursuant to Notification No.G.S.R.829 (E) dated 21.10.2013 issued by the Department of Company Affairs, Government of India, provisions of clause (g) of sub section (1) of section 274 of the Companies Act, 1956 are not applicable to the Company.

f) Since the Central Government has not issued any notification as to the rate at which the

cess is to be paid under section 441A of the Companies Act, 1956 nor has it issued any Rules under the said section, prescribing the manner in which such cess is to be paid, no cess is due and payable by the Company.

For V. Soundararajan & Co., Chartered Accountants ICAI Reg. No. 003943S

Sd/- V.S. SukumarPlace: Kalpakkam PartnerDate: 24th July, 2014 M. No. 018203

The Annexure referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section, of our Report of even date to the members of Bharatiya Nabhikiya Vidyut Nigam Limited on the accounts of the Company for the year ended 31st March, 2014.

3. The Company has neither granted, nor taken any loans, secured or unsecured, to or from companies, firms or other parties, covered in the register maintained under Section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of the business for the purchase of Inventory and fixed assets. As the project is under construction there is no sales activity, except sale of scrap. No continuing failure to correct major weaknesses in internal control was observed.

5. According to the information and explanations given to us, we are of the opinion that there are no transactions that need to be entered into the register maintained under section 301 of the Companies Act, 1956 and therefore paragraph 4(v) of the said order is not applicable.

6. According to the information and explanations given to us, the Company has not accepted deposits from the public and the provisions of section 58A and 58AA of the Companies Act, 1956, rules framed there under and other relevant directives issued by the Reserve Bank of India are not applicable to the Company.

7. In our opinion, the Company has an Internal Audit System which is commensurate with its size and nature of business.

On the basis of such checks as we considered appropriate and according to the information and explanation given to us during the course of our audit, we report that:

1. In respect of its fixed assets:

(a) The Company has maintained records showing full particulars including Quantitative details and situation of its fixed assets.

(b) The Fixed assets have been physically verified by the Management at regular intervals. No material discrepancies were noticed on such verification.

(c) No substantial part of fixed assets has been disposed off during the year.

2. In respect of its Inventories:

(a) As explained to us, inventories have been physically verified by the management at regular intervals during the year.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business.

(c) The Company has maintained proper records of Inventories. As explained to us, no material discrepancies were noticed on physical verification of Inventory as compared to Stock records.

17


8. The Central Government has prescribed the maintenance of cost records as per Notification dated 21st December, 2001 issued by the Department of Company Affairs, Government of India, under section 209(1)(d) of the Companies Act, 1956, in relation to the activities of the Company. In our opinion and as explained to us, the Company’s Plant and Machinery is still under construction and yet to be installed and has no turnover during the year. Therefore, maintenance of cost records is not required as per proviso to the clause 3 of para 2 of the said Notification. Hence, paragraph 4(viii) of the Order is not applicable.

9. (a) In our opinion and according to the information and explanations given to us, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Income-tax, Sales-tax, Service Tax, Customs Duty, with the appropriate authorities. There are no arrears of outstanding statutory dues as at 31.03.2014 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Income Tax / Service Tax / Sales Tax / Customs Duty which have not been deposited on account of any dispute.

10. The Company has not commenced commercial operations and therefore, paragraph 4(x) of the said Order is not applicable.

11. The Company has not borrowed funds from any financial institutions, bank or by way of debentures and therefore paragraph 4(xi) of the said Order is not applicable.

12. The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities and therefore, paragraph 4(xii) of the said Order is not applicable.

13. The provisions of any special statute applicable to chit fund and nidhi / mutual benefit fund / society are not applicable to the Company and therefore, paragraph 4(xiii) of the said Order is not applicable.

14. The Company is not dealing in or trading in shares, securities, debentures and other investments, and therefore paragraph 4(xiv) of the said Order is not applicable.

15. According to information and explanations given to us, the Company has not given guarantee for loan taken by others from banks or financial institutions and therefore, paragraph 4(xv) of the said Order is not applicable.

16. The Company has not availed any Term Loans during the period and therefore, paragraph 4(xvi) of the said Order is not applicable.

17. The Company has not borrowed any funds either on short term basis or on long term basis and therefore, paragraph 4(xvii) of the said Order is not applicable.

18. The Company has not made any preferential allotment of shares other than shares allotted to Government of India and Nuclear Power Corporation of India Limited during the year and therefore, paragraph 4(xviii) of the said Order is not applicable.

19. During the year covered by our Audit Report, the Company has not issued any debentures and therefore, paragraph 4(xix) of the said Order is not applicable.

20. During the year covered by our Audit Report, the Company has not raised any money by public issue and therefore, paragraph 4(xx) of the said Order is not applicable.

21. Based on the audit procedures performed and the information and explanations given to us by the management, we report that no fraud on or by the Company has been noticed or reported during the period covered by our Audit Report and therefore, paragraph 4(xxi) of the said Order is not applicable.

For V. Soundararajan & Co., Chartered Accountants ICAI Reg. No. 003943S

Sd/- V.S. SukumarPlace: Kalpakkam PartnerDate: 24thJuly, 2014 M. No. 018203

18


For and on behalf of Board of DirectorsBHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED

Sd/-(CS.V.Viswanathan)Company Secretary

Sd/-(Rajani Sankaran)Director (Finance)



See accompanying notes to the financial statementsRefer our report of even dateFor V. SOUNDARARAJAN & Co., Chartered Accountants (ICAI Regn. No.003943S ) Sd/- (CA.V.S.Sukumar) Partner Membership No: 018203 PLACE : KalpakkamDATE : 24th July, 2014

BALANCE SHEET AS AT 31st MARCH, 2014 (Amount in `)

Particulars Note No.Figures as at the

end of the current reporting period

Figures as at the end of the previous

reporting period I. EQUITY AND LIABILITIES1. Shareholders’ Funds

a) Share Capital 1 4529,57,00,000 4187,52,00,000b) Reserves & Surplus 2 68,94,85,295 58,56,75,012c) Money received against share warrants Nil Nil

2. Share application money pending allotment Nil Nil 3. Non-current liabilities

a) Long-term borrowings Nil Nil b) Deferred tax liabilities (net) Nil Nil c) Other Long-term liabilities 3 1,45,37,856 1,65,88,338 d) Long-term provisions 4 6,91,35,813 5,90,70,892

4. Current liabilitiesa) Short-term borrowings Nil Nil b) Trade payables Nil Nil c) Other Current liabilities 5 211,99,09,152 162,04,64,525 d) Short-term provisions 6 75,94,955 36,47,641

TOTAL 4819,63,63,071 4416,06,46,408 II. ASSETS1. Non-Current Assets

a) Fixed Assets

(i) Tangible Assets 7 232,70,95,513 215,75,09,547

(ii) Intangible Assets 8 48,61,347 42,20,244

(iii) Capital Work in progress 9 4115,53,48,977 3567,84,68,561

(iv) Intangible Assets under development 10 Nil 6,93,711

b) Non-current Investments Nil Nil

c) Deferred tax assets (net) Nil Nil

d) Long-term loans & advances 11 301,46,87,718 340,40,65,172 e) Other non-current assets Nil Nil

2. Current Assets

a) Current Investments Nil Nil b) Inventories 12 3,75,11,754 3,76,00,551 c) Trade receivable Nil Nil d) Cash & cash equivalents 13 156,18,81,613 274,66,53,337 e) Short-term loans & advances 14 7,23,21,848 10,13,05,365

f) Other current assets 15 2,26,54,301 3,01,29,920 TOTAL 4819,63,63,071 4416,06,46,408

19







See accompanying notes to the financial statementsRefer our report of even dateFor V. SOUNDARARAJAN & Co., Chartered Accountants (ICAI Regn. No.003943S ) Sd/- (CA.V.S.Sukumar) Partner Membership No: 018203 PLACE : KalpakkamDATE : 24th July, 2014

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31st MARCH, 2014 (Amount in `)

ParticularsNote No.

Figures as at the end of the current reporting period

Figures as at the end of

the previous reporting period

INCOME

I Revenue from Operations (Project under construction) Nil Nil

II Other Income 16 15,52,40,287 30,24,68,195

III Total Revenue - (I+II) 15,52,40,287 30,24,68,195

IV EXPENSES

Other Expenses 17 Nil 1,43,30,501

Total Expenses Nil 1,43,30,501

V Profit before Exceptional and Extraordinay items and tax (III-IV) 15,52,40,287 28,81,37,694

VI Exceptional Items Nil Nil

VII Profit before Extraordinay items and tax (V-VI) 15,52,40,287 28,81,37,694

VIII Extraordinay items Nil Nil

IX Profit before Tax (VII-VIII) 15,52,40,287 28,81,37,694

X Tax expense

1) Current Tax 5,14,30,004 9,25,52,169

2) Deferred Tax Nil Nil

XI Profit / (Loss) for the period from continuing operations (IX-X) 10,38,10,283 19,55,85,525

XII Profit / (Loss) for the period from discontinuing operations Nil Nil

XIII Tax expense of discontinuing operations Nil Nil

XIV Profit / (Loss) for the period from discontinuing operations (after tax) (XII-XIII)

Nil Nil

XV Profit / (Loss) for the period (XI+XIV) 10,38,10,283 19,55,85,525

XVI Earning per equity share 32

1) Basic 2.44 4.94

2) Diluted 2.44 4.94

20


NOTES ON ACCOUNTS AS AT 31st MARCH 2014(Amount in `)

ParticularsFigures as at the



reporting period

1 . SHARE CAPITAL

a) Authorised Share capital

5,00,00,000 Equity Shares of ` 1000 each 5000,00,00,000 5000,00,00,000

b) Issued , Subscribed and Fully Paid Up Capital

4,52,95,700 Equity Shares issued, subscribed & fully paid up 4529,57,00,000 4187,52,00,000

c) Par value per share 1,000 1,000

d) i) For Prototype Fast Breeder Reactor (PFBR)

No. of shares outstanding at the beginning of the year 4,17,25,200 3,93,78,500

Add: Issued during the year 31,44,500 23,46,700

No. of shares outstanding at the end of the year (A) 4,48,69,700 4,17,25,200

ii) For Fast Breeder Reactor 1 and 2 (FBR 1 and 2)

No. of shares outstanding at the beginning of the year 1,50,000 1,50,000

Add: Issued during the year 2,76,000 Nil

No. of shares outstanding at the end of the year (B) 4,26,000 1,50,000

Total shares outstanding at the end of the year (A+B) 4,52,95,700 4,18,75,200

e) Shares held by the holding company or by the subsidiary /associates of the holding company

Nil Nil

f) Share holders holding more than 5% shares - Equity shares of ` 1000 each held by The President of India

4,35,71,194 4,06,75,194

g) Shares reserved for issue under options and contracts/commitments for sale of shares/disinvestment

Nil Nil

h) i) Equity shares allotted as fully paid up pursuant to contracts without payment being received in cash for the period of five years immediately preceding 31st March 2014

Nil Nil

ii) Equity shares allotted as fully paid up by way of bonus shares for the period of five years immediately preceding 31st March 2014.

Nil Nil

iii) Equity shares bought back for the period of five years immediately preceding 31st March 2014

Nil Nil

i) Terms of security convertible into Equity /Preference shares issued along with the earliest date of conversion

Nil Nil

j) Calls unpaid (Directors and Officers) Nil Nil

k) Forfeited shares Nil Nil

2. RESERVES AND SURPLUS

Surplus at the beginning of the year 58,56,75,012 39,00,89,487

Add:Transfer from Profit and Loss Statement 10,38,10,283 19,55,85,525

Less:Allocation/Appropriation for the year Nil Nil

Surplus at the end of the year 68,94,85,295 58,56,75,012

21


NOTES ON ACCOUNTS AS AT 31st MARCH 2014(Amount in `)

ParticularsFigures as at the



reporting period

3. OTHER LONG-TERM LIABILITIES

a. Trade payable Nil Nil

b. Others

(i) Micro, Small & Medium enterprises 15,69,561 3,16,705

(ii) Security Deposit, Earnest Money Deposit, Retention money from Contractors and Suppliers

1,29,68,295 1,62,71,633

Total 1,45,37,856 1,65,88,338

4. LONG-TERM PROVISIONS

a. Provision for Employee Benefits :

(i) Gratuity 3,72,67,652 3,05,96,644

(ii) Leave Salary 3,18,68,161 2,84,74,248

b. Others Nil Nil

Total 6,91,35,813 5,90,70,892

5. OTHER CURRENT LIABILITIES

a. Trade payables Nil Nil

b.

Other payables

(i) Micro, Small & Medium enterprises 7,57,72,208 3,44,56,519

(ii) Security Deposit, Earnest Money Deposit, Retention money from Contractors and Suppliers

141,79,24,324 115,82,25,795

(iii) Employee related payables Nil 10,000

(iv) Tax deducted at source (TDS), Service Tax, Sales Tax and other Statutory dues

1,80,69,528 98,48,387

(v) Other deposits 46,32,909 35,87,724

(vi) Other liabilities for expenses 60,35,10,183 41,43,36,100

Total 211,99,09,152 162,04,64,525

6. SHORT-TERM PROVISIONS

a. Provision for Employee Benefits :

(i) Gratuity 16,42,562 19,59,742

(ii) Leave Salary 59,52,393 16,87,899

b. Others Nil Nil

Total 75,94,955 36,47,641

22


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23


NOTES ON ACCOUNTS AS AT 31st MARCH 2014

Particulars

Figures as at the end of the current reporting

period



9. CAPITAL WORK IN PROGRESSa. Capital work in progress 3469,42,77,531 3058,69,60,872 b. Capital Goods in Stock 208,02,89,443 173,12,24,365 c. Expenditure During Construction pending allocation (EDC) as per Note 9A* 438,07,82,003 336,02,83,324 Total 4115,53,48,977 3567,84,68,561 * Break-up of EDCi) PFBR 429,83,81,441 327,98,03,361 ii) Pre-project activities for FBR 1 and 2 8,24,00,562 8,04,79,963

9A STATEMENT OF EXPENDITURE DURING CONSTRUCTION PENDING ALLOCATIONa. Stores and spares consumed 2,09,38,845 82,82,093 b. Repairs and maintenance

i) Building 2,49,74,256 1,94,23,772 ii) Plant and machinery 3,12,78,503 2,86,92,143 iii Others 11,19,52,334 6,75,72,979

c. Rent 7,39,704 6,14,179 d. Salaries, Wages, Bonus and allowances 30,14,33,091 28,07,23,908 e. Terminal and other employee benefits 2,16,48,341 2,47,35,299 f. Staff welfare expenses 6,88,60,688 4,60,68,486 g. Contribution to Provident and other funds 2,49,01,165 2,17,53,235 h. Rates , Taxes and Insurance 4,74,81,487 4,18,68,884 i. Travelling and conveyance expenses 2,43,35,585 2,45,86,091 j. Payment to Statutory auditors

i) Fees (including Service tax) 1,43,821 1,20,226 ii) Re-imbursement of expenses Nil Nil

k. Printing and stationery 16,37,088 15,71,027 l. Electricity and water charges 3,63,46,015 2,09,83,734 m. Advertisement expenses 1,90,42,965 1,94,12,330 n. Consultancy charges 3,82,46,036 3,42,76,531 o. Security expenses 5,56,00,019 2,24,98,274 p. Postage and telegrams 41,07,524 36,02,666 q. Vehicle running expenses 2,54,47,916 2,08,85,386 r. Computer related expenses 43,10,013 15,78,645 s. Office expenses 23,38,578 12,09,488 t. Safety related expenses 53,19,292 9,93,898 u. Testing charges 3,41,903 40,931 v. Public awareness programme and Neighbourhood development expenses 4,15,34,464 2,15,74,611 w. Other expenses 5,98,572 20,01,448 x. Fees and subscription 1,42,93,285 65,45,806 y. (Profit)/Loss on sale /exchange of tangible asset Nil (23,796)z. Depreciation / Amortisation for the year 9,07,26,590 8,19,11,858 TOTAL FOR THE YEAR 101,85,78,080 80,35,04,132 Items re-grouped under Profit and Loss Statement Nil Nil ADD: Balance at the beginning of the year 327,98,03,361 247,62,99,229

Pre- project activities for FBR 1 and 2 8,24,00,562 8,04,79,963

Total - Transferred to Note 9 438,07,82,003 336,02,83,324

(Amount in `)

24


NOTES ON ACCOUNTS AS AT 31st MARCH 2014

Particulars

Figures as at the end of the current reporting

period



10. INTANGIBLE ASSET UNDER DEVELOPMENT Computer Software Nil 6,93,711 Total Nil 6,93,711

11. LONG-TERM LOANS & ADVANCES a.

Capital AdvancesUnsecured and Considered Good :- To Employees 1,40,34,707 97,97,200 - To Suppliers & Contractors 300,06,17,733 339,42,45,022 - To others 35,278 22,950

b. Loans and Advances due by Directors or other officers of the company or any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or director or member.

Nil Nil

Total 301,46,87,718 340,40,65,172 12. INVENTORIES

Stores and Spares (Valued at lower of cost or net realisable value as certified by management )

3,75,11,754 3,76,00,551

13. CASH & CASH EQUIVALENTSa. Balances with Banks in current accounts 3,18,81,613 (23,33,46,663) b. Short-Term Bank deposits (less than 3 months maturity) 153,00,00,000 298,00,00,000 c. Bank deposit (more than 12 months maturity) Nil Nil d. Cheques / Drafts in hand Nil Nil e. Cash on hand Nil Nil f. Balances with Banks held as margin money, security for borrowing etc Nil Nil Total ** 156,18,81,613 274,66,53,337 ** Break-up of cash balance - PFBR 121,82,82,175 267,71,33,300 - Pre-project activities for FBR 1 and 2 34,35,99,438 6,95,20,037

14. SHORT-TERM LOANS & ADVANCES a.

Unsecured and Considered Good :- To Employees 41,40,079 41,28,653 - To Suppliers and Contractors 4,07,72,191 7,12,09,949 - Prepaid Expenses 1,11,74,995 87,12,588 - Other Deposits/Receivable Nil 4,76,051

b. Advance Income Tax & TDS (Net of Provision for Taxation) 1,62,34,583 1,67,71,407 c. Loans and Advances due by Directors or other officers of the company or

any of them either severally or jointly with any other persons or amounts due by firms or private companies respectively in which any director is a partner or director or member.

Nil 6,717

Total 7,23,21,848 10,13,05,365 15. OTHER CURRENT ASSETS

a. Interest Accrued on Deposits 1,19,23,390 2,19,99,544 b. Franking machine Balance 97,640 72,844 c. Other Current Assets 1,06,33,271 80,57,532 Total 2,26,54,301 3,01,29,920

16. OTHER INCOMEa. Sale of Scrap 6,99,192 5,89,757 b. Interest income :

(i) On Bank Deposits (TDS - ` 1,38,70,070) 15,26,77,165 30,09,48,975 (ii) On Staff Advances 15,27,800 6,99,507

c. Miscellaneous income (Forfeiture of deposits) 1,05,010 Nil d. Rental income (TDS - ` 23,110/-) 2,31,120 2,29,956 Total 15,52,40,287 30,24,68,195

17. OTHER EXPENSESTransmission charges Nil 1,43,30,501 Total Nil 1,43,30,501

(Amount in `)

25


18. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:

I. BASIS OF ACCOUNTING:

The financial statements are prepared under historical cost convention, on accrual basis in accordance with generally accepted accounting principles, mandatory accounting standards prescribed by the Companies (Accounting Standards) Rules, 2006, the relevant provisions of the Companies Act, 1956, Electricity (Supply) Act, 2003, Atomic Energy Act, 1962 and other applicable statutory enactments.

II. ASSETS:

A. All fixed assets acquired/constructed by BHAVINI are capitalised at the cost of acquisition/ construction/ fabrication/ erection or on engineer’s estimates, wherever the actual cost is not available/ ascertainable.

B. Fixed assets taken over, if any, from the Indira Gandhi Centre for Atomic Research (IGCAR), Department of Atomic Energy (DAE), Government of India (GOI), are recorded at the cost available from the records of the respective organisation or on engineer’s estimate, wherever costs are not available/ ascertainable.

C. Payments made towards expenditure on development of land are treated as cost of land.

D. Any trade discount/ rebate availed is deducted in arriving at acquisition price.

E. During construction period, ‘assets’ are capitalised on their being put to intended use.

F. The cost of fixed asset comprises its purchase price and attributable costs of bringing the asset to its working condition for its intended use.

G. Fixed assets created on land not belonging to BHAVINI and for the intended use of BHAVINI are capitalised at the cost incurred thereon and included in the fixed assets.

H. Software which is not an integral part of related hardware is treated as intangible asset.

III. Capital work in progress (CWIP) :

A. CWIP includes all expenditure for acquisition/construction of assets.

B. Expenditure on acquisition/construction of assets includes cost of preparing project report and other relatable expenses on site evaluation, land survey, location study, environmental impact assessment, conducting feasibility study, study of design related parameter, etc.

C. CWIP also includes all indirect costs, all incidental expenses incurred during construction pending allocation.

D. All indirect costs relating to project are identified and taken to the respective head and if not relatable to any particular head, to “Expenditure during construction pending allocation” (EDC). EDC is allocated on pro rata basis to the assets capitalised on commencement of commercial operation.

IV. Depreciation:

A. Depreciation on fixed assets is provided on straight line method, on the capitalized cost, at the rate specified in Schedule –XIV of the Companies Act, 1956 except for software.

B. Any software which is computer specific or purchased along with hardware is capitalized as “Plant and equipment” and depreciated at the rate applicable to computers.

C. Any software which is added as independent software for functional use is amortized on straight line method over the licence period or 5 years, whichever is earlier.

D. Individual assets costing upto ` 5000 are fully depreciated in the year of capitalization.

V. Government grants:

Government grant relating to specific fixed asset is deducted from the gross value of asset.

VI. Inventories:

A. Operations and maintenance (O&M) stores spares consist of materials, maintenance supplies, consumables, loose tools awaiting use, to be consumed in the O&M process.

26


IX. Incomes:

A. Revenue Recognition: Revenue is recognized on accrual basis, when its

collection or receipt is reasonably certain.

B. Liquidated Damages: Until liquidated damages are decided as recoverable,

retentions made on this account, if any, are shown under liabilities. During construction phase, in respect of all contracts, liquidated damages recovered from suppliers/contractors are taken to the respective head of account, at the time of closure of contracts.

C. Insurance Claims: Claims lodged with insurance companies and other

minor incomes are accounted for as and when these are settled by the concerned agencies.

D. Sale of scrap: Sale of scrap is accounted for as and when the

transaction materializes.

X. Other items:

Prior period items are income or expenses, which arise in the current period as a result of errors or omissions in the financial statements prepared in earlier years. Effects of changes in estimates are not to be treated as omission or error.

19. Contingent Liabilities and Commitments:

A. Contingent Liabilities

(i) Claims against Company not acknowledged as debts:

(a) Value of additional claims made by different contractors / suppliers is ` 26,46,11,795 (Previous year : ` 30,49,35,245).

(b) Value of Panchayat tax requested is ̀ 3,48,697 ( Previous Year : ̀ 1,16,615). This pertains to a request received from Panchayat President for an additional amount which is not supported by Government order.

(ii) Value of unexpired Letter of Credit is Nil (Previous year : Nil).

(iii) Pending court case filed by a building contractor : ` 1,49,83,320 alongwith interest @ 18% (Previous year : ` 1,49,83,320 alongwith interest @ 18% ).

B. Spares which can be used only in connection with a particular item of fixed asset, the use of which is expected to be irregular, are considered as Capital stores.

C. Stores and spares are valued at lower of the cost or net realizable value (as per technical evaluation).

D. In case where the costs are not ascertainable, engineer’s estimates are relied upon.

E. Costs include cost of purchase, cost of conversion, freight, octroi, etc.

F. Issues of stores and spares, closing stocks are valued at monthly moving weighted average rates.

G. O&M stores spares, including consumable stores loose tools, are charged to revenue at the time of issue.

VII. Foreign Exchange transactions:

A. Foreign exchange transactions are initially recorded at rates prevailing on the date of transaction.

B. On the balance sheet date, foreign exchange monetary items are reported using the closing rates.

C. On the balance sheet date, non-monetary items denominated in foreign currency are reported at the exchange rate ruling on the date of transactions.

VIII.Retirement and other employee related benefits:

A. Retirement benefits such as leave encashment, pension contribution, gratuity relating to employees on deployment from Nuclear Power Corporation of India Limited (NPCIL), IGCAR/DAE/GOI are provided for as per claims made by those employers according to prescribed rules.

B. Liability for leave encashment and gratuity of employees of BHAVINI are provided for as per actuarial valuation. Provident fund contribution is made at the rates prescribed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.

C. Other employee benefits are provided as per schemes adopted.

27


This pertains to a case filed by a building contractor who did not complete the work on time. The unfinished work was completed by another contractor. BHAVINI has also submitted the counter claim. The case is pending before the Honourable High court of Judicature of Madras.

B. Commitments:

Estimated amount of capital commitments remaining to be executed and not provided for is ̀ 6,88,04,95,534 (Previous year: ` 8,34,85,17,326).

20. FIXED ASSETS:

A. Tangible Assets:

(i) The land at Kalpakkam measuring 261.27 acres for plant site and 62.14 acres for residential colony used by BHAVINI belongs to DAE/IGCAR. The Company has, so far, incurred a sum of ` 43,17,317 (Previous Year : ` 43,17,317) for development of the land, which has been shown under “Land”.

(ii) Company has received an amount of ̀ 6,91,200 (Previous Year : Nil) as Government subsidy for Solar cooking system. This amount has been adjusted against the cost of the asset.

B. Capital Work in Progress (CWIP):

CWIP includes ` 8,24,00,562 (Previous year : ` 8,04,79,963) incurred as expenditure towards pre-project activities for Fast Breeder Reactors 1 and 2 (FBR 1 and 2) for which GOI has accorded approval vide DAE No. 2/13(2)/2008-Power/5204 dated 04.06.2010.

21. The company has not commenced commercial operation, has no turnover and not listed / in the process of listing in any recognized stock exchange in India. Therefore, preparation of cash flow

statement as per Accounting Standard-3 is not applicable.

22. The operation of the company is considered as a single segment. Therefore, segment reporting as per Accounting Standard-17 is not applicable.

23. Disclosure of Related Parties transaction (Accounting Standard – 18)

Key management personnel:

Sl. No.

Name Designation

1 Dr. Prabhat Kumar Chairman and Managing Director

2 Smt Rajani Sankaran Director (Finance)

3 Shri T.K.Mitra Director (Technical)

(i) The remuneration of Key management personnel is ` 90,87,345 (Previous year : ` 68,09,198).

24. BHAVINI has absorbed on its roll 12 employees from NPCIL during the year 2013-14 (Previous year : 1 employee) and 2 employees from IGCAR (Previous year : Nil).

In respect of 10 employees, the company has made an estimated provision of ` 89,92,800 (Previous year ̀ 18,85,620 for 4 employees) towards amount receivable from NPCIL for accrued gratuity till the date of absorption. The settlement for remaining 2 employees from NPCIL and the 2 employees from IGCAR has taken place during the year.

25. Provision for leave salary and gratuity is made based on actuarial valuation. The methodology adopted to value the benefit obligation is “Projected Unit Credit Method”.

A. The company does not have plan assets for the purpose of funding the defined employee benefits scheme; hence related disclosure is not applicable.

28


B. For the actuarial valuation of the liability of gratuity and leave salary, following disclosures are made.

(i) Values recognized in the statement of EDC:

(Amount in `)

Sl. No. ParticularsLeave salary Gratuity

13-14 12-13 13-14 12-13

1 Transfer Liability Nil Nil Nil 10,00,000

2 Current service cost 1,04,51,172 74,31,616 57,60,975 38,73,640

3 Interest on obligation 24,90,341 16,49,748 28,49,483 23,38,640

4 Net Actuarial gain recognized in the year (2,99,734) 17,87,837 (95,19,053) (38,88,890)

5 Past service cost Nil Nil Nil Nil

6 Curtailment / Settlement cost Nil Nil Nil Nil

7 Total, included in “Employee benefit expenses” 1,26,41,779 1,08,69,201 (9,08,595) 33,23,390

(ii) Amount recognised in Balance Sheet:

(Amount in `)


13-14 12-13 13-14 12-13

1 Present value of funded obligation Nil Nil Nil Nil

2 Less- Fair value of plan assets Nil Nil Nil Nil

3 Present value of unfunded obligation 3,78,20,554 3,01,62,147 3,89,10,214 3,25,56,386

4 Unrecognised past service cost Nil Nil Nil Nil

5 Net liability 3,78,20,554 3,01,62,147 3,89,10,214 3,25,56,386

6 Amount in Balance Sheet under – “Liabilities” 3,78,20,554 3,01,62,147 3,89,10,214 3,25,56,386

(iii) Changes in present value of defined benefit obligations : (Amount in `)


13-14 12-13 13-14 12-13

1 Opening defined benefit obligation 3,01,62,147 2,19,00,591 3,25,56,386 2,92,32,996

2 Current Service Cost 1,04,51,172 74,31,616 57,60,975 38,73,640

3 Interest on obligation 24,90,341 16,49,748 28,49,483 23,38,640

4 Transfer Liability taken over Nil Nil 90,53,358 10,00,000

5 Net Actuarial gain recognized in the year Nil Nil Nil Nil

6 Benefits paid (49,83,372) (26,07,645) (17,90,935) Nil

7 Actuarial gain/loss on benefit obligation (2,99,734) 17,87,837 (95,19,053) (38,88,890)

8 Closing defined Benefit obligation (1+2+3+4+5-6+7)

3,78,20,554 3,01,62,147 3,89,10,214 3,25,56,386

29


(iv) Principal Assumptions at the Balance sheet date:

Sl. No. ParticularsLeave Salary Gratuity

13-14 12-13 13-14 12-13

1 Mean Financial Assumptions

i) Discount rate per unit per annum 0.09 0.08 0.09 0.08

ii) Salary escalation rate per unit per annum 0.07 0.07 0.07 0.07

iii)Expected rate on plan assets - -

2 Mean demographic assumptions

i) Mortality rate IALM (2006-2008) ultimate (Previous Year: Same)

ii) *Withdrawal / **attrition rate *5.00% **5.00%

iii) Disability / ill health retirement No explicit assumptions

26. In compliance to the requirements of Para 66 of the Accounting Standard 29, movement of provisions is as under:

(Amount in `)

Sl.No. Head of Account As on 31.03.2013Paid/Adj.During

the yearAdditions during

the yearAs on 31.03.2014

1 Leave encashment 3,01,62,147 (49,83,372) 1,26,41,779 3,78,20,554

2 Gratuity 3,25,56,386 72,62,423 (9,08,595) 3,89,10,214

Total 6,27,18,533 22,79,051 1,17,33,184 7,67,30,768

Provisions for the above mentioned year end balances made as per actuarial valuation are detailed below: (Amount in `)

Particulars Long Term Short Term Total

Leave Encashment 3,18,68,161 59,52,393 3,78,20,554

Gratuity 3,72,67,652 16,42,562 3,89,10,214

Total 6,91,35,813 75,94,955 7,67,30,768

29. Miscellaneous Receipts such as sale of tender forms have been netted off against relevant expenditure.

30. In the opinion of the Management, the value on realization of “Current & Non Current Assets” and “Loans and Advances” in the ordinary course of business is not less than the amount at which these are stated.

31. The Central Government has prescribed the maintenance of cost records as per Notification dated 21st December 2001 issued by the Department of Company affairs, Government of India, under section 209(1) (d) of the Companies Act, 1956 in relation to the activities of the Company. However, as the company has no turnover during the period and as the project is under construction, maintenance of cost records is not required as per proviso to the clause 2 of the said Notification.

27. The company has details, to the extent available, as to which of its suppliers are (i) Micro, small and medium enterprises and (ii) Ancillary/small scale industrial undertakings, holding permanent registration certificate issued by the Directorate of Industries of the state/union territories. The company has not received claim for interest on delayed payments from any enterprise registered under the relevant Act (MSMED Act).

28. With the withdrawal of “Guidance Note on Treatment of Expenditure during Construction Period” with effect from September 2008, for tangible assets, only AS-10 (Accounting Standard 10) and for intangible assets, only AS-26(Accounting Standard 26) are applicable and as per the opinion received from Expert Advisory Committee of the ICAI dated 09 March 2009, Profit and Loss Statement is being prepared since the financial year 2008-09.

30


32. Earnings per share after Tax (Basic and Diluted) is calculated as under:

Year

Numerator - Net Profit

as per Profit and Loss

Statement

Denominator - Weighted

Average number of

Equity shares outstanding

(Face value of ` 1000/- each)

Earning Per Share (Amount

in `)

2013-14 10,38,10,283 4,25,42,168 2.44

2012-13 19,55,85,525 3,95,73,505 4.94

As Prototype Fast Breeder Reactor (PFBR) is under construction, company does not have turn over from its commercial operation and the profit shown in the Profit and Loss Statement is from “Other income” (Refer Note-16).

33. Balance Confirmation:

A. Certificates of balance have been received in respect of all bank balances.

B. Employee related advances are confirmed.

C. Advances to suppliers and contractors are confirmed.

D. With respect to liabilities, confirmation of balances has been received for significant portion (96% of the total amount of liabilities) of suppliers and contractors.

34. Details of transactions in Foreign Currency:

A. Quantitative information:

(Amount in `)

Particulars 2013-14 2012-13

(i) Value of Import on CIF basis

17,87,364 27,11,67,330

(ii) Expenditure in Foreign Currency

(a) Royalty Nil Nil

(b) Know how Nil Nil

(c) Professional & Consultation fees

Nil Nil

(d) Interest Nil Nil

(e) Others 1,02,89,687 74,83,902

(iii) Earnings in Foreign Exchange

Nil Nil

B. The information with respect to the total value of all imported raw materials, spare parts and components consumed during the year and the total value of all indigenous raw materials, spare parts and components similarly consumed and the percentage of each to the total consumption, being confidential in nature in the opinion of management, has not been disclosed as per DAE Order No. AEA/18/i/89-ER/3345 dated 22nd November 1989.

C. The information with respect to the amount remitted during the year in foreign currencies on account of dividends, with a specific mention of the total number of non-resident shareholders, the total number of shares held by them on which the dividends were due and the year to which the dividends related to are not applicable as all the shares are held by GOI and NPCIL (A Government of India enterprise).

35. BHAVINI carried forward an unspent amount of ` 274,66,53,337 from 2012-13 (Previous year: ` 499,42,08,540). An amount of ` 262,00,00,000 (Previous year: ` 174,67,00,000) for PFBR, ` 27,60,00,000 (Previous year: Nil) for pre-project activities of FBR 1 and 2 were received as equity from DAE and an amount of ` 52,45,00,000 (Previous year: ` 60,00,00,000) was received as equity from NPCIL for PFBR during 2013-14. An amount of ` 156,18,81,613 (Previous year ` 274,66,53,337) remained unutilized at the year end and has been retained in “Cash and cash equivalents”. An amount of ` 15,26,77,165 (Previous year: ̀ 30,09,48,975) has been earned as interest from the short term deposits made during the year from the unspent amount.

36. The revised approved capital cost of PFBR is ` 5677,00,00,000. As per the approved funding pattern, 80% of the capital cost has to be funded by equity, which works out to ` 4541,60,00,000. Out of this, ` 4314,52,00,000 has to be funded by DAE and the balance Rs. 227,08,00,000 by NPCIL. The entire equity amount from DAE has been received as on 31.03.2014. In respect of the equity portion from NPCIL, ` 107,08,00,000 was

31


five hundred crores to cover the liability in case of a nuclear incident. This provision applies from the date of receipt of fuel. As BHAVINI has not received fuel as on date, the financial security has not been created.

39. Figures of the previous year have been regrouped/ rearranged wherever necessary to the extent feasible to make them comparable.

The above Notes (1 to 39) form part of these Accounts.

receivable in 2013-14 and was sought for. However, ` 52,45,00,000 was received in 2013-14 and the balance ` 54,63,00,000 is yet to be received.

37. The foreign exchange gain / loss has been taken to respective items as the project is under construction.

38. Civil Liability for Nuclear Damage (CLND) Act, 2010 lays down that every nuclear operator has to take out insurance policy or such other financial security or combination of both for rupees one thousand






For V. SOUNDARARAJAN & Co., Chartered Accountants (ICAI Regn. No.003943S ) Sd/- (CA.V.S.Sukumar) Partner Membership No: 018203 PLACE : KalpakkamDATE : 24th July, 2014

32


COMMENTS OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA UNDER SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED FOR THE YEAR ENDED 31st MARCH 2014.

The preparation of financial statements of Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31st March 2014 in accordance with the financial reporting framework prescribed under the 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 277 of the Companies Act, 1956 based on the independent audit in accordance with the Standards on Auditing 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 24.07.2014.

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 Bharatiya Nabhikiya Vidyut Nigam Limited for the year ended 31st March 2014. 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.

Based on my supplementary audit, nothing significant has come to my knowledge which would give rise to any comment upon or supplement to Statutory Auditor’s report under Section 619(4) of the Companies Act, 1956.

For and on the behalf of the Comptroller and Auditor General of India

Sd/- (Atreyee Das) Place: New Delhi Director General of Commercial Audit & Date: 01.09.2014 Ex-Officio Member, Audit Board-IV

BHARATIYA NABHIKIYA VIDYUT NIGAM LIMITED (A Government of India Enterprise)

Registered Office: No.51, Montieth Road, Egmore, Chennai - 600 008www.bhavini.nic.in

annual report 2013-14bhavini.nic.in/writereaddata/annualreport/29.pdfthe absorber drive mechanisms...

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