30th July 2015

CENTRAL
MANAGEMENT ACCOUNTS FOR THE

ELECTRICITY PERIOD JANUARY - MAY 2015 & REVISED

FORECAST FOR THE YEAR 2015

BOARD
30th July 2015

1
CENTRAL ELECTRICITY BOARD
TABLE OF CONTENTS

1.GENERAL REVIEW................................................................................................................. 3

2.COST PER UNIT ....................................................................................................................... 7

3. OTHER INDICATORS ............................................................................................................ 9

4. FINANCIAL STATEMENTS AND ANALYSIS ................................................................. 10

5. ANALYSIS OF SALARIES AND WAGES .......................................................................... 20

6. RODRIGUES .......................................................................................................................... 22

7. REVISED FORECAST FOR YEAR 2015 ............................................................................ 23

2
Management Accounts for the five months ending 31st May 2015
1. GENERAL REVIEW
1.1 Variance Analysis
The CEB budgeted a profit of Rs 263.53 M for the first five months ending 31st May 2015 but the
actual profit for the first five months turned out to be Rs 1,594.11 billion. This represents a
favourable variance of Rs 1,330.58 M, that is, 505% of the budgeted profit for the five months
ending 31st May 2015.

Total income for the period amounted to Rs 6.73 billion and was almost exclusively made up of
revenue from sales of electricity.

Total expenditure for the period comprised of the cost of sales, operating expenses and finance
charges and amounted to Rs 5.16 billion. Details of the expenditure are as follows:

Distribution of Costs
Finance
Charges Category Rs'000
Operating 2.13%
Costs
20.50% Cost of Sales 3,989,770

Operating Costs 1,057313

Finance Charges 109,765

Cost of
Sales
TOTAL 5,156,849
77.37%

3
Management Accounts for the five months ending 31st May 2015
A comparison of the budgeted profit of Rs 263.53M with the actual profit of Rs 1,594.11 M for
the first five months ending 31st May 2015 is explained as follows:

Rs Million
Variance

Favourable (Adverse) Net

Budgeted Profit 263.53
Revenue variance (43.30)
Cost of sales variance 1,358.91
Operating costs (48.87)
Difference on exchange 102.96
Net Finance Costs (9.36)
Other Income (29.57)
Net Profit Variance 1,461.87 (131.3) 1,330.58

Actual Profit 1,594.11

Sales revenue for the period January to May 2015 was Rs 6.51 billion compared to the budgeted
sales revenue of Rs 6.55 billion, indicating an adverse variance of Rs 43.30 M. The variance for
sale of electricity is made up of an adverse sales volume variance of Rs 52.33M and a favourable
price variance of Rs 8.93 M. The CEB budgeted sales for the period was 1,110.32 GWh while
actual sales was 1,101.42 GWh, representing an adverse variance of 8.89 GWh. The actual average
selling price per unit turned out to be Rs 5.88 compared to the budgeted figure of Rs 5.87 for the
first five months ending 31st May 2015.

The favourable cost of sales variance amounting to Rs 1,358.91 million has occurred mainly
because the actual generation mix has been different from the budget and more importantly,
because the actual prices of fuel oil and coal were lower than the budgeted prices. During the
period, the CEB generated 560.91 GWh and the IPPs generated 606.99 GWh compared to the
budgeted figures of 586.00 GWh and 624.10 GWh respectively.

4
Management Accounts for the five months ending 31st May 2015
In addition, the actual average total unit cost of generation, without finance charge, for the CEB
amounted to Rs 3.31 compared to the budgeted figure of Rs 5.00; the actual unit cost from IPPs
was Rs 3.30 compared to Rs 3.57 as budgeted.

The actual average unit cost has decreased because the prices of heavy fuel oils and coal have
been lower than budgeted, as detailed below.
Average
Budget 2015 January - May May 2015
2015
HFO 180 CST
USD/MT 637.49 363.30 *400.94
MUR/Ltr 20.10 11.87 13.35
HFO 380CST
USD/MT 628.44 348.33 *387.60
MUR/Ltr 19.80 11.59 13.22

Coal API 4 (C.I.F) USD/MT 92.22 68 **68.50

* Last Consignment received on 08.05.2015

** As at May 2015 from CTMC
Operating expenditure comprises of transmission and distribution as well as administrative costs
and amounted to Rs 1,057.31 million for the five months period January to May 2015 against the
budget of Rs 1,008.45 million, giving an adverse variance of Rs 48.87 M.

The finance costs budgeted for the period under review amounted to Rs 100.41 M but the actual
finance costs were Rs 109.77 M, resulting in an adverse variance of Rs 9.36M.

5
Management Accounts for the five months ending 31st May 2015
A profit or loss on exchange results from movements in the rates of foreign currencies and is made
up of realized and unrealized gain/loss. An amount of Rs 77.11 M was budgeted for as loss on
exchange for the period January to May 2015. The actual result turned out to be a gain on exchange
amounting to Rs 25.85 M, representing a favourable variance of Rs 102.96 M. The fluctuations
of the foreign currencies against the MUR during the period are shown on page 17.

There has been an adverse variance amounting to Rs 29.57 M in respect of Other Income. The
item “Other Income” includes fees for rechargeable services, late payment surcharge, sundry
receipts and amortization of grants. There has been an under budgeting for the items of grants
amortization.In fact the treatment of grants amortization has changed with the adoption of IFRS
instead of IPSAS for the preparation of the account.

1.2 Liquidity
The net cash balance as at 31st May 2015 was Rs 2,961.68 million. This include amount in
Mauritian rupees and foreign currencies such as USD and EURO.

1.3 Rodrigues
For the first five months ending 31st May 2015, the CEB Rodrigues branch, has incurred a loss of
Rs 52.05 M as compared to the budgeted loss of Rs54.75 million. This represent an adverse
variance of Rs 1.55M.

6
Management Accounts for the five months ending 31st May 2015
2. COST PER UNIT

CEB Generation & Cost per unit

Period from January to May 2015

GENERATION ACTUAL BUDGET

THERMAL Marginal cost Total Cost Total Cost Marginal cost Total Cost

Rs/kwh Without With Rs/kWh without

GWh GWh
Fin.Charge Fin.Charge Fin.Charge

Rs/kWh Rs/kWh Rs/kWh

F.George 288.46 2.66 3.25 3.27 309.00 4.27 4.87

St Louis Pielstick-old 11.19 3.75 5.64 5.64 14.00 5.72 7.65

St Louis Wartsila-new 58.33 2.77 3.89 3.93 67.00 4.39 5.38

F Victoria MAN 8.92 3.13 5.20 5.21 16.00 4.97 6.10

F.Victoria Wart 116.51 2.70 3.73 3.92 122.00 4.37 5.45

Nicolay 1.02 18.94 39.15 39.92 3.00 21.24 28.74

TOTAL THERMAL 484.43 2.75 3.61 3.67 531.00 4.46 5.31

HYDRO 76.48 - 1.41 1.41 55.00 0.00 1.95

Total CEB Generation 560.91 2.38 3.31 3.37 586.00 4.05 5.00

Notes
i. Total costs include all production costs (materials, labour, administration, depreciation and others).

ii. The marginal cost for the Thermal Power Station has been based on Fuel and other oil usage and kWh generated
for the year.

The actual cost per unit was much lower than the budget due to lower HFO prices.

7
Management Accounts for the five months ending 31st May 2015
IPP Generation & Cost per unit

Period January - May 2015 Jan-Apr Jan-Mar

2015 2015
BUDGET ACTUAL

Total Cost Total Cost

GWh GWh
Rs/kWh Rs/kWh Rs/kWh Rs/kWh
ALTEO (FSPG) 64.00 3.99 58.66 3.74 3.75 3.88
CEL 58.99 2.81 63.54 2.76 2.77 2.78
TERRGAEN (CTBV) 176.41 2.99 183.85 2.65 2.64 2.63
OTEOLB (CTSAV) 199.00 4.13 183.86 3.77 3.82 3.71
OTEOSA (CTDS) 102.00 3.72 100.02 3.28 3.31 3.34
SOTRAVIC 9.20 5.07 8.51 4.99 4.99 4.99
SARAKO 10.00 6.39 8.43 6.65 6.62 6.58
SUZLON 2.00 6.44 0.00 - - -
SUB TOTAL 621.60 3.66 606.87 3.30 3.29 3.30
MEDINE 0.00 - 0.00 - - -
5X2MW 1.90 6.24 0.00 - - -
TOTAL 623.50 3.66 606.87 3.30 3.29 3.30

NOTES:
1. The actual total cost Rs/kWh is provisional (include MID levy, bagasse transfer price and provisional
accruals), and is subject to change upon finalisation of indexation exercise.

2. The figures for Sotravic Ltee and Sarako PVP do not take into consideration the refund
received/receivable from Government.

3. The actual energy purchased exclude unwanted energy where applicable.

8
Management Accounts for the five months ending 31st May 2015
 3. OTHER INDICATORS

UNITS SOLD (kWh) May -15 March -15

Domestic 70,763,742 73,233,317
Commercial 75,866,627 85,157,043
Industrial 59,103,628 60,260,238
Others 5,077,164 4,775,248
TOTAL MAURITIUS 210,811,161 223,425,846
TOTAL RODRIGUES 2,913,456 2,687,795
Average sales price per kWh (Mauritius only) –Rs/kWh 5.76 5.79
SYSTEM LOSSES

12 monthly moving averages (%) 7.20 6.76

TURNOVER (Rs M)

Sales of Electricity 1,232.81 1,309.76

Meter Rent 6.39 6.20

Total 1,239.11 1315.96
NUMBER OF CUSTOMERS

Mauritius (as at end of month) 434,383 432,132

Rodrigues (as at end of month) 13,713 13,690

NUMBER OF EMPLOYEES

Staff (as at end of month)-Incl. Casual Workers 845 845

Manual Workers (as at end of month) -Incl. Casual Workers 1,079 1081
Total 1,924 1,926
LABOUR KPI

Overtime cost per staff employee (Rs) 5,183.95 5,344.12

Overtime cost per Manual Worker (Rs) 12,329.25 12,310.30

Overtime on salaries (%) 10.89 11.54

Overtime on Wages (%) 40.23 40.56

Overtime on Salaries & Wages (%) 24.13 24.78

9
Management Accounts for the five months ending 31st May 2015
4. FINANCIAL STATEMENTS AND ANALYSIS
Statement of Profit or Loss

Statement of Profit or Loss for the period ending 31st May 2015

Jan-May 2015

NOTES Actual Budget

Rs'000 Rs'000
Revenue 4.4 6,507,046 6,550,547

Cost of sales 4.5 (3,989,770) (5,348,680)

Gross profit
2,517,276 1,201,867

Operating costs 4.6 (1,057,313) (1,008,448)

Operating profit /(Loss) 1,459,963 193,419

Gain/(Loss) on exchange 4.7 25,854 (77,107)

Profit /(Loss) before finance costs

1,485,816 116,311

Net finance costs 4.8 (109,765) (100,407)

Profit /(Loss) after finance costs

1,376,051 15,905

Other income 4.9 218,058 247,625

Profit /(Loss) for the period 1,594,109 263,530

Notes:
1. The above statement includes the results for Rodrigues branch.

10
Statement of Financial Position

Statemen t of Finan cial Posi tion as at 3 1 s t May 2015

31-May-15 30-Apr-15
NOTES Rs'000 Rs'000

ASSETS
Non-current assets
Property, plant and equipment 4.10.1 19,869,874 19,960,265
Work in progress 803,907 764,521
Investment - -
Loans receivable 33,929 33,929
20,707,710 20,758,715
Current assets
Inventories 4.10.2 2,145,564 1,809,185
Trade receivables 4.10.3 2,409,328 2,416,626
Other receivables 4.10.4 562,815 669,520
Loans receivable 41,403 35,562
Cash and cash equivalents 3,007,517 2,686,712

8,166,627 7,617,604

TOTAL ASSETS 28,874,337 28,376,320

EQUITY AND LIABILITIES

Equity
Capital reserves 4.10.7 5,534,150 5,527,838
Other reserves 4.10.8 670,856 670,856
Retained earnings 11,267,126 11,034,629

Total equity 17,472,132 17,233,323

Non-current liabilities
Long term borrowings 5,946,840 5,976,797
Retirement benefit obligations 4.10.5 1,765,831 1,762,812

7,712,671 7,739,609

Current liabilities
Bank overdraft 45,838 50,193
Short term borrowings 444,850 443,156
Trade and other payables 4.10.6 3,198,846 2,910,039

3,689,534 3,403,388

TOTAL EQUITY AND LIABILITIES 28,874,337 28,376,320

11
Management Accounts for the five months ending 31st May 2015
Statement of Cash flows for the period ending 31st May 2015

Notes Rs
Cash inflows
Receipts from sale of electricity 1 6,865,814,150
Vat refund 586,590,769
Grants received 10,000,000
Other income 2 57,597,866
Miscellaneous 42,333,333

Total 7,562,336,118

Cash outflows
IPP'S 3 1,928,027,681
STC- 4 1,270,809,619
MaBC TV License fee 5 218,961,689
Salaries and salaries related payments 677,752,835
SSDG Payments 14,135,038
Other payments 6 1,022,729,498
Loan repayments:
Capital 339,568,451
Interest 40,131,255
Interest on overdraft 74,437
Total 5,512,190,502

Net cash flow From operations 2,050,145,615

Opening balance 894,518,049

Closing balance 2,944,663,664

Notes
1 Includes mainly ,receipts from sale of electricity ,meter rent and MaBC TV licence fee
2 Other income includes interest income, Insurance claims and other monies
3 Amount is inclusive of VAT and exclusive of TDS and penalty
4 Includes VAT element
5 Amount is net of commission.
Includes fx paymts ,pymts to contractors ,custom duties,TDS,Refund of security deposit, Water & Tel
6 payments,Bk charges etc

12
Management Accounts for the five months ending 31st May 2015
Revenue & Sales variances

Revenue variance Rs 43.50 M (Adverse) - This is made up of the following components:

Revenue-Mauritius and Rodrigues- January to May 2015
Actual Budget Variance % Variance
Fav/(adv) Fav/(adv)

Units (kWh) 1,101,423,645 1,110,319,703 (8,896,057) (0.80%)

Sales of Electricity
(Rs'000) 6,475,972 6,519,272 (43,300,180) (0.67%)
Rental of Meters
(Rs'000) 31,074 31,274 (200,607) (0.65%)

Total Revenue (Rs'000) 6,507,046 6,550,547 (43,500,788) (0.67%)

Revenue from sales of electricity has been lower than budgeted by about 0.67%. In terms of sales volume, the
CEB has sold 8.89 GWh less than budgeted for the period January to May 2015. The major variance in demand
is in the commercial sector which is lower by 16.19 GWh than initially budgeted for.
Electricity is sold to different consumer categories, each category paying a different price per kWh
consumed. Changes in the sales mix of these different sales categories cause monthly fluctuations in
the average price per kWh sold.

The total sales of 1,101,423,645 kWh by category for the period January to May 2015 is shown below:

Sales by category Jan - May 2015

Rodrigues
1% Residential
Others
32%
4%

Industrial
32%

Commercial
31%

13
Management Accounts for the five months ending 31st May 2015
Cost of sales & Generation of electricity

Cost of sales variance Rs 1,358.91 million (Fav)-Cost of sales has been lower than budgeted mainly because of
lower than budgeted units generated and lower than budgeted prices of fossil fuel. The variances for Mauritius
only amounting to Rs 1,358.91M are shown below.
Actual Original Budget Variances % Variation
CEB (kWh) 560,912,375 586,000,000 (25,087,625) (4.28)
IPP/CPP (kWh) 606,987,080 624,100,000 (17,112,920) (2.74)
Total (kWh) 1,167,899,455 1,210,100,000 (42,200,545) (3.49)

Rs’000 Rs’000 Rs’000

Fuel and other oil 1,415,023 2,451,971 1,036,948 42.29
Other Generation Costs 242,908 286,805 43,897 15.31
Depreciation of generation assets 322,407 308,342 (14,065) (4.56)
Total CEB generation costs 1,980,338 3,047,118 1,066,780 35.01
Purchased from IPP & CPP 2,009,432 2,301,562 292,130 12.69
Total Cost of Sales * 3,989,770 5,348,680 1,358,910 25.41
CEB/IPP mix (%) 48/52 48/52
Cost of sales per kWh:
CEB 3.53 5.20 1.67 32.10
IPP 3.31 3.69 0.38 10.23
Combined 3.42 4.42 1.00 22.71

*The prices for IPP are based on provisional price and do not take into account any indexation allowances.

A breakdown of the main elements of cost of sales for the period January to May 2015 is shown below.

Fuel & Other

Purchase of oil
electricity 35.47%
50.36%

Materials
etc
0.02%
Other Wages
Depreciation2.04%
generation
8.08%
costs Salaries
2.71% 1.31%

As shown above, purchase of electricity represents 50.36%, fuel oil 35.47% and CEB other generation
costs 2.71 % of cost of sales.

14
Management Accounts for the five months ending 31st May 2015
For the period January to May 2015 generation for electricity has been lower than initially forecast by
about 42.20 GWh. CEB generations has been lower than the budget by 25.09 GWh and purchases from
IPP were lower by 17.11 GWh.

IPP & CPP

52%

CEB
48%

In fact CEB plants have produced 560.91 GWh to meet 48% of the electricity demand whereas the
initial forecast was of 586.00 GWh (48%). The remaining 52% of electricity, 606.99 GWh compared to
the budgeted 624.10 GWh has been supplied by the IPPs.

The generation of electricity by different sources is shown in the graph below:

Actual (GWh) Budget (GWh)

Actual % Variance
January-May 2015 January-May 2015
Thermal 484.43 531.00 41.48 (46.57)
Hydro 76.48 55.00 6.55 21.48
Coal 561.32 601.00 48.06 (39.68)
Bagasse 28.72 - 2.46 28.72
Landfill Gas 8.51 9.20 0.73 (0.69)
Sarako -Solar 8.43 10.00 0.72 (1.57)
5x2 MW - 1.90 - (1.90)
CSP - 2.00 - (2.00)
1,167.90 1,210.10 100.00 (42.20)

15
Management Accounts for the five months ending 31st May 2015
Operating cost
Operating cost variance Rs 48.87M (Adverse)
Actual Budgeted Variance
Rs'000 Rs'000 Rs'000
Distribution and administrative costs 138,685 119,436 (19,249)
Pension costs 37,292 36,205 (1,087)
Legal & Professional fees 5,941 36,033 30,092
Depreciation of distribution assets 183,905 191,711 7,806
Depreciation of buildings and other assets 35,224 34,412 (812)
Salaries & wages and related costs 452,095 396,864 (55,230)
Uniforms and Overalls 1,971 2,847 876
Provident Fund 2,544 1,929 (615)
Vehicle Operating expenses 7,346 31,715 24,369
Insurance Costs 13,272 13,516 244
Stationery And Printing, Postage 4,895 6,027 1,132
Maintenance of Assets 19,127 29,226 10,098
Retirement pension obligation 15,092 30,000 14,908
Lease of Land 23 348 325
Security & Cleaning 13,983 14,060 76
Other Operating expenses 125,917 64,119 (61,799)
1,057,313 1,008,448 (48,865)

Operating costs for the five months ending 31st May 2015 have been higher than budgeted, as shown
above, by Rs 48.87M.

Gain on exchange & Foreign currency

Exchange gain/ (loss) results from variations of the rate of exchange on the market. This major and
volatile cost element causes significant fluctuations in the reported financial performance. The CEB is
exposed to exchange rate risks on account of the following costs:
 Repayments of loans and payment of interest in foreign currency, mainly in Euro.
 The translation of outstanding loan balances at the end of the period.
 Payments for Fuel Oil in USD.
 Purchase of materials and Equipment from abroad.

16
Management Accounts for the five months ending 31st May 2015
 Gain/ (Loss) on Foreign Exchange –Five months ending 31st May 2015

Variance
Actual Budgeted Fav/(Adv)
Rs'000 Rs'000 Rs'000
Realised gain/(loss) (1,067) (2,511) 1,444
Realised gain/(loss) on forex 72,582 (74,597) 147,179
Unrealised gain/(loss) (45,662) 0 (45,662)
Gain/(loss) 25,854 (77,107) 102,961

The loss on exchange for the period January to May 2015 was budgeted at Rs 77.10 M. The actual gain
for the same period was Rs 25.85M, indicating a favourable variance of Rs 102.96M. The closing rate of
exchange used to compute unrealized gain/loss on exchange for the USD and EURO were as follows:

29th May 2015 31st March 2015

USD 35.90 36.87
EURO 39.33 39.99

17
Management Accounts for the five months ending 31st May 2015
SUMMARY OF PEAK DEMAND (MW)

The graph below illustrates the variation in peak power from January to December for the years 2013,
2014 and first three months of the year 2015

Peak Demand for energy (MW) Year 2013- 2014)

2013 2014 2015
490

470

450

430

410

390

370

350

330
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

A new peak demand of 459.85 MW has been recorded in March 2015. The increase represents a
growth of 3.06% over the previous peak. The peak demand for the past three years was as follows:

Year 2013 441.13 MW on 17.12.2013

Year 2014 446.20 MW on 22.01.2014
Year 2015 459.85 MW on 03.03.2015

18
Management Accounts for the five months ending 31st May 2015
TREND OF SALES AND LOSSES (12 months average)

Losses above have been calculated on a yearly moving average of 12 months. The graph below shows
the movement from January 2014 to May 2015.

11.00

10.00

9.00

8.00

7.00

6.00

5.00

4.00

The two components of losses are technical and non-technical losses. Technical losses cannot be
practically eliminated. Transmission technical losses are inherent in the grid property and can hardly be
reduced, but distribution losses on LV network can be improved. Non-technical losses due to fraud can
be tracked and further efforts are being made to reduce it through monitoring of distribution and billed
amount.

19
Management Accounts for the five months ending 31st May 2015
5. ANALYSIS OF SALARIES AND WAGES
5.1 ANALYSIS OF MONTHLY SALARIES&WAGES

Other % of
No of Stand By
Month Gross Salary (Rs) Overtime (Rs) Travelling (Rs) Allowances Grand Total O/Time on
Employees Overtime (Rs)
(Rs) Salary

Jan 1,933 71,790,819 14,917,702 3,697,513 6,283,208 4,308,392 100,997,634 25.93

Feb 1,928 72,091,452 18,199,343 3,725,305 6,515,016 4,425,017 104,956,133 30.41
Mar 1,926 71,960,055 17,884,934 3,520,534 6,290,331 4,341,748 103,997,602 29.75
Apr 1,926 73,254,710 18,695,339 3,735,244 6,565,074 4,144,109 106,394,476 30.62
May 1,925 73,466,894 17,683,692 3,385,818 6,608,232 5,074,755 106,219,390 28.68
Total 362,563,930 87,160,092 18,064,414 32,261,861 22,294,021 522,565,236 29.02

 The number of employees on Payroll has drifted from 2,078 in January 2014 to 1,925 in March 2015. This represent a decrease of
7.36% of the labour force.
Sources: Payroll statistics

20
5.2 Overtime for the period January to May 2015

The CEB is an organisation providing a 24-hour service and overtime is inevitable. Overtime includes both
controllable and uncontrollable overtime. The non –controllable overtime includes payment to the standby
team and shift workers working in excess of 40 hours per week. Overtime payment also includes the
following:

%OT on Gross
Department Total Overtime Gross Salary Salary
Normal Overtime Rs Rs
T&D 45,232,421 149,722,820 30.21
Production 28,893,319 75,207,026 38.42
Rodrigues 5,143,241 15,805,559 32.54
Administrative 641,271 12,112,845 5.29
Financial 299,551 6,731,175 4.45
Customer Services 4,525,664 63,532,954 7.12
IT/MIS 375,458 4,295,300 8.74
Human Resource 393,840 6,050,409 6.51
Corporate Planning - 2,190,900 -
Audit - 2,656,300 -
Supply chain 1,220,066 11,962,600 10.20
GM Office 430,832 2,117,239
NUG 4,427 2,786,500 0.16
Management - 6,977,600
Normal Overtime 87,160,092 362,149,228 24.07
Other Overtime
Stand By 18,064,414 - 4.99
Casual - 55,850.00 -
Other Overtime - - -
Extra duty 469,456 - 0.13
Total 105,693,962 362,563,930 29.15

 Ad-hoc duties/extra hours worked

 Works carried out after normal working hours at customers’ request and charged to them.

21
6. RODRIGUES
1. Demand & Generation
The total units sold for the period ending 31 May 2015 is 14.18 GWh for the 13,711 customers with a total
revenue amounting to Rs 91 M as compared to a budget of Rs 89 M.

The two thermal power stations and the two wind farms of CEB Rodrigues have a combined installed
capacity of 13.68 MW and an effective capacity of 12.78 MW. Energy generation for the period January to
May 2015 was 16.72 GWh, out of which 15.24 GWh was sent out. The line losses is about 7%. The bulk of
energy (94 %) at Rodrigues is generated by fuel based stations situated at Port Mathurin and Pointe Monnier.
The two wind farms located at Grenade and Trefles have contributed to 6 % of the total units generated for
the period January to May 2015.

The maximum power demand was 6,870 kW on 13 March 2015.

2. FINANCIAL PERFORMANCE

 During the first five months ending 31st May 2015, the Rodrigues branch has made a financial loss
of Rs 52.05 million as compared to a budgeted loss of Rs 50.49 million.

 Revenue from sales of electricity has been higher than budgeted by about 3%. In fact, in terms of
sales volume, the CEB has sold 1.47 GWh higher than budgeted for the period ending 31 May
2015. The actual average price was Rs 6.45 per kWh.

 Cost of Sales for the period under review has been higher than budgeted by Rs 4.7 million.

 Operating costs for the period has been higher than budgeted by Rs 10 million.

 Other income has been higher than budgeted by Rs 0.6 million.

22
Management Accounts for the year ending 31st December 2014
7. REVISED FORECAST FOR YEAR 2015
Based on the result of the five months ending 31st December 2015, a revised forecast has been
made for the financial year 2015. The profit for year as per the initial budget was Rs 389.46
million but this result is likely to be more favourable. With revised set of assumptions it is
estimated that the profit may turned out to be around Rs 2,449.86 million by the end of the year.

The demand for the year is expected to be lower than the initial budget of 3.82%. As at end of
May 2015, with the exception of sales to the residential category, sales to all other categories have
recorded negative growth. Taking this into consideration the demand forecast has been revised
accordingly. Cost of sales has been updated with the revised generation plan reflecting the fall in
demand but also taking into consideration the fall in the prices of HFO and coal. The table below
show the main assumptions used for the revised forecast.

2015
Measurement Original Revised
HFO 180 CST -CIF USD/MT 637.49 399.30

HFO 380CST - CIF USD/MT 628.44 385.70

Coal API 4 (C.I.F) USD/MT 92.22 68.50

USD/MUR MUR 32.70 36.23

EURO/MUR MUR 41.75 39.39
Inflation % p.a. 5.00 3.00
Repo Rate % p.a. 5.25 4.65
PLR % p.a. 7.75 7.00

Operating costs take into consideration the main variances identified from the result of the first
five months and this has been replicated on the budget of the remaining 7 months. Labour costs is
one of the main item that has been under budgeted during the budget exercise.
Losses on exchange has been revised with the expected rate of foreign currency at the end of the
year. The impact of the improvement in our liquidity position and the status of capital investment
has been taken into consideration to revise the finance charge for the year accordingly.

23
Management Accounts for the year ending 31st December 2014
 PROFIT OR LOSS FOR THE YEAR ENDING 31 DECEMBER 2015 (REVISED FORECAST)

Original Revised
Budget Forecast Variance
Notes
Rs'000 Rs'000 Rs'000

1
Revenue 14,967,013 14,380,602 (586,411)
2
Cost of sales (12,366,478) (9,707,994) 2,658,484

Gross profit 2,600,535 4,672,608 2,072,073

3
Operating costs (2,379,346) (2,554,626) (175,280)

Operating profit 221,190 2,117,983 1,896,793

4
Gain/(Loss) on exchange (185,058) (56,100) 128,958

Profit before finance costs 36,132 2,061,883 2,025,751

5
Net finance costs (240,976) (185,384) 55,592

Profit /(Loss) after finance

(204,844) 1,876,499 2,081,343
costs

Other income 594,301 573,361

(20,940)

Profit /(Loss) for the period 389,457 2,449,860 2,060,402

24
Management Accounts for the year ending 31st December 2014
Cash flow statement for year ending 31st December 2015

Notes Dec-15
Cash inflows Rs
Receipts from sale of electricity 1 15,605,306,091
Vat refund 1,415,608,619
Grants received 80,501,345
Other income 2 70,661,738
Miscellaneous 42,333,333
Total 17,214,411,127

Cash outflows
IPP'S 3 5,028,194,424
STC- 4 3,607,710,667
MaBC TV License fee 5 526,364,213
Salaries and salaries related payments 1,735,672,667
SSDG Payments 41,372,656
Other payments 6 2,745,679,727
Loan repayments:
Capital 979,546,494
Interest 204,682,889
Capital expenditure 7 86,400,000
Payment of Pension adjustments 220,014,474
Interest on overdraft 74,437
Total 15,175,712,648

Net cash flow From operations 2,038,698,479

Opening balance 894,518,049

Closing balance 2,933,216,528

Notes:
1. Includes mainly, receipts from sale of electricity, meter rent and MaBC TV licence fee
2. Other income includes interest income, Insurance claims and other monies
3. Amount is inclusive of VAT and exclusive of TDS and penalty
4. Includes VAT element
5. Amount is net of commission.
6. Includes forex paymentts, payments to contractors, custom duties, TDS, refund of security deposit,
Water & Telephone payments, Bank charges etc
7. Expenditure for project les Grandes Salinnes

25
Management Accounts for the year ending 31st December 2014
It is to be noted that the following assumptions have been used for the preparation of the Cash Flow
Statement.
 Receipts for July to December are based on average for last 6 months -Jan to June 2015 and
decreased by 4%.
 Ipp payments For Aug to Dec as per NUG projections
 STC payments Aug to Dec based on average for Jan to August.
 Interest on pension funds loan to be paid at end of year

26
Management Accounts for the year ending 31st December 2014