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:APGENCQ,
ANDHRA PRADESH POWER GENERATION CORPORATION TIMITED
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Our Vision
To be the best power utility in
the country and one of the best in
the world.
Our Mission
To generate and supply adequate and reliable power in the
State of Andhra Pradesh in the most economic manner.
To spearhead accelerated economic power development
by planning, implementing new power projects within
stipulated cost and time.
To implement renovation and modernization of all existing
units and enhance their performance.
To operate power stations economically, efficiently
and eco-friendly.
Core Values
Excellence in all aspects of the company.
Honesty, integrity and ethical business.
People, as the source of strength.
Respect for the individual and personal growth.
. Tackling challenges and solving problems

Continued self improvement, never being satisfied.
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Mrutyunjay Sahoo, IAS Dinesh Kumar, IAS K. Vijayanand, IAS
Chairman Chairman Managing Director
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D. Prabhakar Rao G. Adiseshu U.C. Krishna Murthy

Joint Managing Di rector Director - Hydel Director - Technical
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C. Radha Krishna C. Vaman Rao S. Anjaneya Rao
Director - Projects Director - HR Director - Thermal
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T. Prabhakar Rao, IRTS Pushpa Subrahnranyan, IAS T. Satyanarayana Rao. IAS Aditya Nath Das, tAs
Director - Coal & Logistics Director - Non-Executive Director - Non-Executive Director - Non-Executive
From: 19.01.2012 Upro 19.0'1.2012
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ANDHRA PRADESH POWER GENERATION CORPORATION I.IMITED
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Mrutyunjay Sahoo, I AS Chairman From 22.09.2O12

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DineshKumar,!AS Chairman upto 22.09.2O12
K.Vijayanand, I A S Managing Director
D. Prabhakar Rao Joint Managing Di rector
G. Adiseshu Director (Hydel)
U.C. Krishna Murthy Director (Techn ical)
C. Radha Krishna Director (Projects)
G. Vaman Rao Director (HR)
S. Anjaneya Rao Director (Thermal)
T. Prabhakar Rao, IRTS Director (Coal & Logistics)
Pushpa Subrahmanyam Director(Non-Executive) From 19.O1.2O12
T. Satyanarayana Rao, I A S Director (Non-Executive) Upto 19-01 -2012
Aditya Nath Das, I A S Director (Non-Executive)
C. Adinarayana Company Secretary
STATUTORY AUDITORS COST AUDITORS

IWs. K.S. RAMAKRISHNA & Co ItlUs NARASIMHA MURTHY & CO,
Chartered Accountants Cost Accounrants
# 5 -9 -221 38 12, Adarstnagar,
HYDERABAD
HYDERABAD. 5OO 063.
Regktcred Offrce:
Vidyut Soudha, Hyderabad - 500 082.
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.APGENCO
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Contents
1. Chairman's Statement 5
2. Directors' Report 7
3. Auditors'Report 18
4.
5.
6. Profit and Loss Account 25
7. Notes to Accounts 26-57
8. Cash Flow Statement 58
CONSOTIDATED
9. Auditors' Report 60
11. Profit and Loss Account 63
12. Notes to Accounts 6+9s

13. Cash Flow Statement 96
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APGENCO'
ANDHRA PRADESH POWER GENERAIION CORPORATION I.IMITED
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Chairman's Statement
Dear Shareholders,
At the outset, I extend a warm welcome to all of you for aftending the
14th Annual Ceneral Meeting of the company. I am sure, you must have
received the audited Accounts forthe year ended with 31st March, 2012
together with the Auditors' Report and comments of the C&AC and the
{ Directors' Report and with your permission, I take them as read.
INSTATLED CAPACITY:
The present installed capacity of your company is 8924.86 MW comprising thermal
5092.50 MW, Hydro 3829.36 MW, Solar I MW and Wind 2 MW. During the year, your
company has added 500 MW Thermal, 39 MW Hydel and 1 MW Solar capacity respectively.
OPERATIONAL PERFORMANCE:
GENERATION:
The total Generation during the year is 42,259.26 MU as against 37,320.61 MU for the
previous year 201 Gl 1 . The increase in power generation during the year is 4.938.65 MU. The
Thermal Power generating stations have generated 6,522.52 MU more during the year. The
company has also generated 0.40 MU Solar units. During the year under review there is a
decrease of 1584.27 MU Hydel generation due to lack of hydrology. The thermal power
stations have achieved an overall Plant Load Factor (PLF) of 83.80o/o for the year against all
lndia average PLF o173.3%.
FI NANCIAL PER.FORMANCT:
Your Company has achieved an aggregate turnover of Rs. 1 1,490.52 Crores as against 8990.97
crores for the previous year201G.2011. Cross Profit before depreciation &tax is Rs. 1867.O7
crores as against Rs. 1486.79 crores for the previous year 2010-1 1. The depreciation for the
year is Rs. I 102.02 crores. The company has earned a net profit of Rs. 401 .52 crores as against
a profit Rs. 3'l 3.22 Crores forthe previous year 201G2o]1 .
OUTLOOK:
AII out efforts are being taken to complete the projects presently under implementation and
also to bring in new projects so as to increase the generation of power.
5
ANDHRA PRADESH POWER GENERATION CORPORAT!ON TIMIIED
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CORPORATE SOCIAT RESPONSIBILITY:
Your Company continues to take up laying of roads, providing water connections, building
schools and community development centers in its areas of operation. The hospitals run by
your company cater free out-patient treatment to the general public. Your company has also
conducted the health awareness programmes, health check up programme at its project areas
from time to time for the purpose of general public.
SAFETY:
Your company continued its emphasis on occupational health and safety to all the employees
working in its projects and stations by making all out efforts such as providing necessary
training, supply of safety equipments, manuals etc., to prevent all types ofaccidents.
COMMUNITY:
During the year under review Medical checkups were carried out and medicines provided at
the company's health centers to the general public. The Company is also running the schools
for chi ldren education.
INDUSTR.IAL RELATIONS:
During the year, the employee relations in your company continued to be conducive marked
by industrial harmony and mutual trust.
APPRECTATION:
I express my sincere thanks and gratitude to all my colleagues on the Board for their valuable
advice and guidance in managing the affairs of the company. I am thankful for the whole
hearted support received from various departments of Central and State Covernments, Public
Sector undertakings Suppliers and other Agencies. I acknowledge the hard work and
dedicated efforts put in by the employees at all levels that have taken your company to greater
heights.
M. SAHOO, IAS
CHAIRMAN
Place: Hyderabad
DATE:28 .O9.2O12
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APGENCO,
ANDHRA PRADESH POWER GENERATION CORPORATION I.IilIITED
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Directors' Report
TOTHTMEMBERS
The Board of Directors take immense pleasure in presenting the Fourteenth Annual Report
on the business operations of your company together with the Audited Accounts for the year
ended 31stMarch,2O12.
FINANCIAL SUMMARY:
The Financial Results forthe year ended 31st March, 2012 are summarized below:
(Figures in Rs.Crores)
l" April, 2or 1 1' April, 2010
Particulars to to
31'March,2012 3lrlvlarcfi, 20I1
Sales & other lncome 11490.52 8990.97

Cross Profit before depreciation and Tax 1867.O7 1486.79
Depreciation 1"t02.o2 977.18
Profit before Tax after adjustment of
Prior period items & extraordinary Exceptional items 765.05 s09.61
Provision for Tax 153.O7 102.32
Deferred tax liability - current year 134.62 94.O7
Defened tax liability - previous year 75.84
Net Profit after Tax 401.52 313.22
PERFORMANCE R.EVIEW:
The year under review, the power stations of your company generated 42,259.26 million
un its of electriciff fihermal 3 5970.87 m illion un its, Hydel 6287.99 m illion un its, Solar 0.40
million Units and Wind Nil units) as compared to previous year's generation of 37320.61
million units (Thermal 29448.35 million units, Hydel 7872.26 million units and wind Nil
units). APCENCO's coal based thermal stations achieved a Plant Load Factor of 83.80 o/o as
compared to previous year's Plant Load Factor of 79.46o1o and all lndia average PLF of 73.3%.
During the year under review the company has generated 1 584.27 million units lesser hydel
generation than the previous year generation due to bad hydrology.
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ANDHRA PRADESH POWER GENERATION CORPORATION LII'JIITED
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HIGHTIGHTS FOR THE YEAR 2O1I.2O12
a) APCENCO achieved the highest annual gen eration of 42259 MU during 201 1-12.
b) APCENCO Thermal Power Stations achieved 83.8% PLF against All lndia Average PLF
of 73.3% and stood FIRST among State Power Utilities.
c) APCENCO deemed PLF stands at 85% as about 520 MU was backed down at Thermal
Power Stations according to the instructions of Load Despatch Centre during 201 1-12.
d) APCENCOachievedthehighestmonthlygenerationof3966MUduringMarch,2O12.
e) APCENCO Thermal power stations achieved the highest monthly generation of 3566
MU (94.1% PLF) duringMarch,2Ol2.
0 APCENCO Stations generated 151.1 MU on 12.09.201 1, which is the highest daily
generation recorded since inception.
g) APCENCO Thermal power stations achieved highest daily generation 119.8 MU (98%
PLF) on 20.03.2012.
h) APGENCO supplied 1O7 MUlday during 201 1-12 and met about 46% ot AP Grid
requirement.
DIVIDENDS:
The Board has decided to plough back the surplus amount as equity in view of the massive
capacity expansion programme on hand, and therefore, no dividend is recommended to its
shareholders forthe year 201 1-12.
DTVER$TrcATION OF ACTIVITIES :
APCENCO is providing O & M services to AMRP Lift lrrigation Scheme of lrrigation
Department, Covernment of Andhra Pradesh. APCENCO is also providing consultancy
services to power projects of other organization viz. lift irrigation schemes of lnigation
Department ofCovernment of Andhra Pradesh.
As a part of the backward integration, APCENCO has taken up development of captive coal
mine blocks at Tadhicherla in Warangal District, Andhra Pradesh.
AWARDSFOREXCETIENCE
a) ln recognition of excellent performance achieved by thermal & hydel power stations,
APGENCO received many commendations & awards over the past 3 decades from
various agencies like CEA, SCOPE, CPU, etc.
b) Operation & Maintenance practices of APGENCO power stations are adopted as
benchmark by many utilities.
c) KTPS Stage.V received Consolation Award for the year 2009-10 under the category
' Performance of Thermal Power Stations' instituted by Ministry of Power, GOI on
22.03.2012 at New Delhi.
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IPGE,ICO
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
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d) APCENCO received THE INDIA POWER AWARD 201 1, for the third time, instituted
by Council of Power Utilities for 'Overall Utility Performance - Generation', at New
Delhion 24.11.2O11.
e) APCENCO received THE INDIA PRIDE AWARD 201 1 underthe category 'State Public
Sector Undertakings (Electricity and Power)' on 21 .10.201 1 at New Delhi.
CAPACITYADDITION:
1. APCENCO has successfully augmented its installed capacity by 540 MW during 201 1-12.
2. Priyadarshni Jurala HES Unit-6 (39 MW) was synchronized and achieved full load on
09.06.201 I , CoD was declared on 04.08.201 1 .
3. Kothagudem TPS Stage-Vl UNIT-1 1 (500 MW) was synchronized on 30.03.2011 and
the Unit achieved full load on 26.06.201 1. CoD was declared on 23.10.201 1.
4. Solar PV plant (1MW) atJurala was synchronized on 30.11.201 1. CoD was declared
on 10.01.2012.
5. Total capacity addition during Xl Plan was 2374 MW .
NEWPROIECTS:
Keeping in view of future power needs, APCENCO has taken up 19 new power pro,ects with a
combined capacity of 1 8,852 MW benefiting from Xll Plan onwards as follows:
ONGOING PROIECTS:
a) Thermal Projects
1. KakatiyaTPPStagell 600MW
2. Sri Damodaram Sanjeevaiah (Krishnapatnam) TPP
Stage-l (2X800 MW) underAndhra Pradesh Power
Development Company Limited (A Subsidiary of APCENCO) 1 600 MW
3. RayalaseemaTPPStage.lV(l X600MW) 600MW
b) Hydro Proiects
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NagarjunasagarTail Pond Dam PH (2x25 50MW
2. PulichintalaHEP(4x30Mw) 120MW
3. LowerJurala HEP (6x40 MW) Z+O tvtW
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Projects at development / lnvestigation stage
a) Under Development
1 . lntegrated Casification Combined Cycle (ICCC) Plant
At DT.NTTPS. 182 MW
2. Karimnagar Cas based Power Project Stage-l (1X700 MW) 700 MW
3. Karimnagar Cas based Power Project Stage-ll(2X70O MW) 1400 MW
4. Vadarevu TPP Stage-l (2X800 MW) 1600 MW
5. Vadarevu TPP Stage-ll (3X800 MW) 2400 MW
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ANDHRA PRADESH POWER GENERATION CORPORATION I.IfiIITED
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6. Polavaram HEP (12x80 MW) 960 MW
7. Dr.Narla Tata Rao (Vijayawada)TPS Stage-V(l X800 MW) 800 MW
8. Kothagudem TPS Stage-Vll (1X800 MW) 800 MW
9. Sri Damodaram Sanjeevaiah (Krishnapatnam) TPP Stg.-ll
(1 X 800 MW) under Andhra Pradesh Power 800 MW
Development Company Ltd. (a subsidiary of APCENCO)
l0.Shankarpally Cas based Power Project 1000 MW
b) Under lnvestigation
1. SattupallyTPs 600MW
2. SrikakulamTPP(4x600MW) 2400MW
3. Nuclear Power Plant UV)with NPCIL 2000 MW
DEPOSITS:
Yourcompany has not acceptecyrenewed any deposits from the public duringthe y ear 2O11-12
TNSURANCE:
Your company has insured its assets to the extent wherever necessary duringthe year 201 1-12.
AUDITCOMMITTEE:
The company has its audit commiftee and the members are Sri Aditya Nath Das, lAS,
Sri T.Satyanarayana Rao, lAS, and Sri C. Adiseshu upto 19.01.2012. Smt. Pushpa
Subrahmanyam, lAS, has been nominated as audit committee member with effect from
19.01 .2012 in place of Sri T. Satyanarayana Rao, lAS, who has been transferred from the
Fi nance Department, Covernment of Andhra Pradesh.
DIRECTORS' RESPONSIBI IITY STATEMENT :

Pursuant to provisions of Section 217 (2AA\ of the Companies (Amendmen0 Act 1956,
I
your Directors state that:
i) in the preparation of the annual accounts, the applicable accounting standards
have been followed along with proper explanation relating to material departures.
ii) the company has 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 as on 31st March, 2012 and of
the profit ofthe company forthe yearended on that date.
iii) the company has taken proper and sufficient care for the maintenance of adequate
i accounting records in accordance with the provisions of the Companies Act, 1 956 for
safeguarding the assets of the company and for preventing and detecting fraud and
other irregularities.
iv) the accounts have been prepared on agoingconcern basis
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ANDHRA PRADESH POWER GENERAIION CORPORAIION TIMITED
Wffi eeoG5E56.t 556 ae56A5 *O;6a5 Oa)86
ENVIRONMENT MANAGEMENT :
Conservation of natural resources and environmental protection to achieve sustainable
development are primary objectives of APCENCO. To achieve these objectives, APCENCO is
putting efforts on the following areas:
1) Performance optimization and upgradation of pollution control systems from timetotime.
2) Compliance of statutory norms.
3) lnnovative measures forfly ash utilization.
4\ Creen beltdevelopment in and around the plants.
ASH UTII.ISATION FOR THE YEAR 2OT 1.12 :
The annual generation of fly ash from the Thermal Power Stations of APCENCO is presently
around 10.29 Million Tonnes.
o 1 1 0o/o Fly ash extraction, storage and d isposal facilities are provided at all the projects of
APCENCO, Bottom ash collection and storage facilities such as hydro bins are being
constructed to utilize bottom ash.
o Minimum 2O"L tly ash is being given to brick manufacturing units at free of cost.
Balance 80o/o is being sold in the market at Dr. NTTPS, RTPP and RTS to generate funds
to strengthen dry fly ash extraction & disposal facilities and fly ash promotional
measures as per MoE&F, COI notification d1.03.11.2009. Dry fly ash from KTPP is
being given to all the users at free ofcost as there is no demand from the cement plants.
o Long term MOUs are concluded with cement companies for supply of fly ash.
o Free loading facility is provided at ash pond of DT.NTTPS, to encourage the pond ash
user agencies to improve pond ashutilization.
o APCENCO has initiated a study for use of fly ash for mine stowing at KTPP, Studies are
under progress.
o Ash utilization which was 0.148 million tonnes during the year 1998-99 has increased
to 4.51 million tonnes during 201 1-12.
fuh Utilisation (Bottom Ash and Dry FlyAsh) Pafiiculars -Y eat 2O1l'12
Station AshGeneration AshUtilisation "/"AshUtilisation
DT.NTTPS 4037190 2420064 59.9
RTPPStaee-l,ll&lll 2265032 1565047 69.1
KTPSO&M 201-t250 119107 5.9
KTPSStageV&Vl 1301843 197822 15.2
RTS-B 139800 74800 53.5
KTPP 531 839 128440 24.15
Total 10286954 4505280 43.8
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ANDHRA PRADESH POWER GENERATION CORPORATION TII1JIITED
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HUMAN RESOURCES DEVEI-OPMENT :

During the year 2O11-12, your company has provided training to 3625 employees to ensure
development of the required competencies in general management, power station operation
and maintenance, project construction, erection & commissioning and information
technology by incurring an amount of Rs.1 ,-l 2,99,3O71-.
coNsEnvATtoN oF ENERGY, TECHNOIOGY AESORPTION, TOREIGN EXCHANCE

EANNINGSAND OUTGO ETC. :
Additional information on conservation of energy, technology absorption, foreign exchange
earnings and outgo as required to be disclosed in terms of Section 217 (1 )(e) of the Companies
(Disclosure of Particulars in the Report of Directors) Rules, 1 988 is annexed hereto (Annexure
l) and forms part of this report.
PATTICUI.ARS OF EMPI.OYEE5 PURSUANT TO PROVISION OF SECTION 217 (2AI OF

THECOMPAN!ESACT:
None of the employees is drawing the salary as prescribed in section 217 (2A\ of the
companies Act, 1 956 duringthe year 201"1-"12.
BOARD OF DIRECTORS :
Sri Sutirtha Bhattacharya, lAS, is the Chairman of the Company upto 8.08.201 1; and
Sri Dinesh Kumar, IAS is the Chairman of the Company from 8.08.201 1 to 22.09.2O'12
Sri Mrutyunjay Sahoo, IAS is the Chairman of the Company from 22.09.2O12. The whole time
Directors are: Sri K.Vijayanand, lAS, Managing Director, Sri D.Prabhakar Rao, Joint Managing
Director, Sri U.C. Krishna Murthy, Director Technical, Sri C. Adiseshu, Director Hydel.
Sri G.Vaman Rao, Director/HR and Sri C.Radhakrishna, Director Projects. Sri T. Prabhakar
Rao, IRTS, Director, Coal & Logistics and Sri S.Anjaneya Rao, Director/Thermal. The Non-
Whole time Directors are Sri Aditya Nath Das, lAS, and Smt. Pushpa Subrahmanyam, lAS.,
from 19.01 .2012. Sri Sutirtha Bhattacharya, IAS has ceased to be Chairman of the Company
with effect from 8.08.201 1 and Sri T. Satynarayana Rao. lAS, has ceased to be the Non-whole
time Director of the Company with effect from 19.O1 .2012.
AUDITORS:
The Comptroller & Auditor Ceneral of lndia, have appointed lv1/s K.S. Ramakrishna & Co.,
Chartered Accountants, Hyderabad, as Statutory Auditors of the Company forthe year 2O12-13.
COSTAUDITORS:
lWs Narasimha Murthy & Co., Cost Auditors were appointed with the approval of the Central
Govemmentfor conducting the Cost Audit for th eyear 2O1'l-12.
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ANDHRA PRADESH POWER GENERATION CORPORATION IIIVIITED
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APGENCO ero1c5155d.E. 556 ae56rr5 so36aS oa)86...
AUDITOBSERVATIONS:
The replies of the management on the observations made by the Statutory Auditors on the
accounts of the Company for the financial year ended with 31.3.2012 are aftached here to
as Annexure.ll. Further, the notes to accounts forming part of the Annual Accounts for the
year 2O11-2012 are self-explanatory and needs no further elaborations.
ACKNOWI.EDGMENTS:
Your Directors acknowledge with deep sense of appreciation, the cooperation received
from the Covernment of Andhra Pradesh, APTRANSCO, APDISCOMS, 5 ingaren i Collieries
Company Limited, Mahanadi Coal Fields Limited, Ministry of Power, Ministry of Coal,
Covernment of lndia and Central Electricity Authority.
Your Directors also convey their gratitude to various Banks and lndian Financial lnstitutions
for the confidence reposed by them in APCE NCO.
We also acknowledge with thanks the constructive suggestions received from C & AC and
the Statutory Auditors.
We wish to place on record our appreciation for the untiring efforts and contributions made
by the employees at all levels to ensure that the company continues to grow and excel. We
also thank associations, and unions for their whole.hearted co-operation in maintaining
good and cordial industrial relations.
For and on behalf ofthe Board
Place Hyderabad
Date 28.09.2012 MRUTYUNIAYSAHOO, IAS
CHAIRMAN
APGENCO ERP Office at Erratadda
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APGENCO
ANDHRA PRADESH POWER GENERAIION CORPORATION LIfYIIIED
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Annexure-I to the Directors' Report
PARTICUTARS REQUIRED UNDER THE COMPANIES (DISCTOSURE OF PARTICULARS
IN THE REPORTOFTHE BOARD OF DIRECTORS), RUIES, 1988.
A. CONSERVATION OF ENERGY
(a) Energy conservation measures taken
The important energy conservation measures taken up during the year 201 1-2O12 are
as under:
ENERGYAUDITS
During the year under review, number of energy surveys have been conducted at
various stations of the company in the areas of auxiliary power consumption, water
balance, cooling water system, compressed air, coal handling plant, ash handling
system, boilers and turbines etc., were carried out atdifferent stations of the company.
AUXI TIARY POWER CONSUMPTION
During the year under review, number of measures have undertaken at various power
stations for minimizing the auxiliary power consumption such as strict monitoring of
operations of various auxiliaries such as CW pumpVCT pumps, CT fans coal handling
auxiliaries, LP/HP water pumps, ash slurry pumps, boftom ash and coarse ash
evacuation equipments, large sized motor driven boiler feed pumps, miscellaneous
water pumps, lD/FD fans during unit start ups, compressors, air washing/air handling
units, ESPs.
HEAT ENERGY
During the year under review close monitoring of various operational parameters
such as boiler excess air, mill fineness; mod ification/timely repairdaftempting repairs
on line i.e., without resorting to unit shut downs were carried out and the same have
helped the company to reduce the consumption of heat energy substantially.
FUETOII
During the year various measures have been under taken for reduction of fuel oil
consumption for further optimisation of operational systems particularly with regard
I to unit start ups (which generally result in higher fuel oil consumption), attempting
modification/ timely repairs resulting in lesser number of unit tripping/shut downs,
coal mill washing, on line cleaning of ash build ups and clinkers (whenever the coal
quantity is extremely bad) from boiler bottom hoppers and on line cleaning of coal
mills'reject' passages.
DMWATER
During the year under review the efforts like prompt attending of DM water/steam
leakage, on line leak sealing regulation of blow downs, and close monitoring of water
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consumption are made to reduce the consumption of DM water resulting in reduction
of consumption of chemicals.
MISCELIANEOUSWATER
During the year under review, consumption of raw, cooling and drinking water could
also be reduced by timely attending the tine leakages, maintaining optimum ash water
ratio and encouraging efforts ofdry ash collection from electrostatic precipitators.
DIESEUMGRFUEI-
Monitoring to reduce idle running of locos, dozers and other transport vehicles helped
in containingthe consumption of diesel.
TUBR,ICANTS
Timely attending the cooler tube leakages, maintaining proper clearances of oil
guardvcatches of turbine bearings reclamation and reuse of waste oils. modification of
MOT filterdrains etc., helped to reduce the consumption of lubricants.
TIGHTING
Rectification/substitution of conventional lighting fixtures with energy efficient gadger
continued.
b) Additional investment and proposals for reduction in consumption of energy:
- Nil-
B. TECHNOTOGY ABSOR,PTION
Efforts are made towards technology absorption as per Form-B
C. FOR,EIGN EXCHANGE EARN!NGSAND OUTCO

Total Foreign Exchange used was worth R.s. 3120 lakhs
1. Foreign Exchange Outgo
a) Value of lmports calculated on CIF basis
Capital Coods Rs.3020 lakhs
Spare Parts )
b) Expenditure
Professional and Consultancy Charges
Others Rs. 100 lakhs
lnterest Nil
!
2. Foreign Exchange Earned
Consultancy Nil
lnterest Nil
Others Nil
'15
Jr^
FONM FOR OTSCTOSUNE OF PAITICUIJiNSW.]TH NESPECTTO AESORSTION OFTECHNOT(rcY

A. RESEARCHANDDEVETOPMENT
1.0 Specific areas in which R&D activities havebeen carried ord duringthe year2017-2o12.
Major Achievements
o Reliable operations and Residual life estimation of transformers through DGA.
Partial discharge and degree of polymerization techniques.
. Failure investigation of critical components of power plants like boiler tubes,
turbine blades etc.
o Developmentof methodology for testing of colloidal silica in boilerfeed water.
o Residual life assessment of high temperature components by X-Ray diffraction.
I Environment audit of all thermal stations to ensure proper environmental
monitoring and control.
. Condition monitoringof fire fighting systems in all generating stations.
. Reliable operation of debris filters and online tube cleaning system improved
vacuum in condensers thereby increasing cycle efficiencies.
2.0 Benefits derived as a result of the above:
o The selective ion exchangers are useful for removal of toxic metals like Arsenic,
Mercury, etc., from drinking water and effluents.
3.0 Future plan of action
o Effects of moisturecontent in coal on pulverization.
. Standardisation ofanti corrosive coating for power plant applications.
o Study offireside cracking ofwater walltubes.
o Optimum utilisation of fly ash.
I B) TECHNOLOGYABSORPTION,ADAPTATION AND INNOVATION

Efforts made towards technology absorption, adaptation and innovation etc.
Adoption of advanced technologies in logic systems by providing max DNA and
numerical protection systems in R&M Schemes.
# O PARTICUTARS OF TECHNOTOGIES IMPORTED DURINC THE YEAR

During the year under review the company has not imported any technology
For and on be{ratf of the Board

Place Hyderabad
Date 28.O9.2012 M.SAHOO, IA5
CHAIRMAN
It)
W*
APGENCO:
ANDHRA PRADESH POWER GENERATION CORPORATION TIMIIED
eao1E515:)6.5. 556
as565'5 ed)da5 oa)EE
Annexure-II to the Directors' Report
Managemmt Replies to the Comments in the Arditors' Report
Para Reply
Comment
No.
(1) Sale of power to DISCOMS (APPCC) The company has f iled Aggregate
and the amounts outstanding and Revenue Requirement (ARR) for the
receivable thereon is subject to review Financial Years 2009-10 to 2O13-'14
as per APERC final orders and the before the Andhra Pradesh Electricity
quantitative im pact is not Regu latory Commission (APE RC).
determ inable. Pending APERC's decision thereon,
Revenue from sale of power is accounted
for prudently and the recognition of the
same is deferred wherever it is not
confirmed. Hence, there may not have
any negative impact on the financial
statements of the company.
KTPS Vl Stage(l x 500 MW)
!
t I
a
a
l"
17
ANDHRA PRADESH POWER GENERAT!ON CORPORATION I.IMITED
Wm €eo6565d.t 556 ar;Stsir5 s8;6i'5 0A)46
't
Auditors' Report
a7{&'gln^,/"i'1,, ( (,
Chartercd Accounlants
To
The Members,
ANDHRA PRADESH POWER GENERATION CORPORATION tIMITED,
1 We have audited the attached Balance Sheet of ANDHRA PRADESH POWER

GENERATION CORPORATION LlMrIfD as at 31st March,2O12 and the Profit and Loss
account and also Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial statements
based on our audit.
2 We conducted our audit in accordance with Auditing Standards generally accepted in

lndia. Those Standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audat includes, examining on a test basis. evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3 As required by the Companies (Auditors Report) Order, 2003 and amendment order, 2004
issued by the Central Government of lndia in terms of Secj.ion 227 (4A) of the Companies
Act, 1956 and on the basis of such checks considered appropriate and according to the
information and explanations given to us during the course of the audit, we enclose in the
annexure a statement on the matters specified in paragraphs 4 and 5 ofthe said order.
4 Furtherto ourcomments in the Annexure referred to in paragraph 3 above, and subjectto:

Sale of Power to DISCOMS (APPCC) and the amounts ouutanding and receivable thereon
F is sublea to review as per APERC final orders and the quantitative impact is not
determinable.
Otlice '. 5-9-22138/2, Adarshnagar, HYDERABAD - 5OO 063.

Ph: 23240992/23232062, F ax: 23234234
E-mail: kyesrk@yahoo.com
18
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iIPGETVCO i eeaL15E5d.5. 556 a356a5 e8)645 OA)65',
ee'9?-.*l*^- 9V"..
Chartered Accountants
We report that :
1 We have obtained all the information and explanations, which to the best of our
knowledge and belief were necessary forthe purposes of ourAudit.
2 ln our opinion, proper books of accounts as required by law, have been kept by the
company sofaras appears from ourexamination ofsuch books-
3 The Balance Sheet and Profit and Loss account and the Cash Flow Statement dealt with
bythis report are in agreementwith the books ofaccounts.
4 ln our opinion, the Profit and Loss Account and Cash Flow Statement for the year ended
3'l st March, 201 2 and the Balance Sheet as on that date dealt with by this report comply
with the accounting standards referred to in Sedion 2l I (3C) of the Companies Act,
1956.
5. Being a Covernment Company, Clause (g) of the sub-seaion (l ) of Section 274 ol the
Companies Act, I 956 is not applicable.
6. ln our opinion and to the best of our information and according to the explanations
given to us, the said accounts read with the notes together with the Accounting Policies
give the information required by the Companies Act, 1956 in the manner so required
and give a true and fair view in conformity with the accounting principles generally
accepted in lndia:
a) In the caseof Balance Sheet, ofthe State ofAffairs oftheCompanyas at 31st March,2012;
b) ln the case of Profit and Loss account, ofthe Profit forthe year ended on that date; and
c) ln case ofthe Cash Flow Statement, ofthe Cash Flows forthe yearended on that date.
For K.S. Rarnalrishna & Co.,

Chartered Accqrntants
FRN. OO2888S
K. Ranu Rao
PartrE
M.No.206O39
Place : Hyderabad
Date : 21 " .luly, 201 2
Oflice : 5-9-22138/2, Adarshnagar, HYDERABAD - 500 063.

Ph: 232409921 23232062, F ax: 23234234
W* apoENcoi
eeeGSE5dF 556 aE56a5 c6)6a5 0A)86
-t
I
Annexure to the Auditors'Report

oKeY 9?oo,ol*tl g'6",
"o
Referred to in paragraph 3 of our report of even date
'I
. ln respect of its fixed assets :
a) The Company is maintaining a record showing the particulars, including

quantitative details and situation offixed assets, which requires to be updated.
b) As explained to us, the fixed assets of all units have been physically verified by
the respective management at reasonable intervals and no material
d iscrepancies were noticed on such physical verification.
c) The Company has not disposed off substantial part of fixed assets during the
year and the going concern status ofthe Company is not effected.
2. ln respect of its inventories :
a) As perthe information and explanations given to verification of

us, the physical
inventory has been conducted by the management at reasonable intervals.
b) ln our opinion and according to the information and explanations given to us,
the procedure 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. However, the provision for surplus/
obsolete, unserviceable and non-moving materials and spares is made to the
extent of 50% ofthe Book Value of such materials, after the physical verification
is undertaken.
c) The Company is maintaining proper records of inventory. As per the
information and explanations given to us, no material discrepancies were
noticed on such physical verification.
3. The Company has not granted/taken any loan, secured or unsecured to/from
companieV firms or other parties covered in the register maintained under section
301 of the Companies Act 1956. Hence, Subclauses (b), (c), (d), (e), (0 and (g) of
clause (iii)of the Companies (Auditor's Report) Order2003 are notapplicable.
4. ln our opinion, there is an adequate internal control procedure commensurate with
the size of the Company and nature of its business, for the purchase of inventory
and fixed assets and also for sale of power, and in the areas of Cash, Finance and
Other Expenses/Operations the internal control systems should be strengthened
adequately also in order to prevent scope for m isappropriations/frauds in the
company/units. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control system of the
Company.
Otlice : 5-9-22138/2, Adarshnagar, HYDERABAD - 500 063.
Ph: 2324O992/23232062, F ax: 23234234
I
20
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i!?cENeg)
ANDHRA PRADESH POWER GENERATION CORPORATION I.IMIIED
eeaG5G56E- 555 a356a5 so:\Bas O5)86',
QT{aY q-*.1,*[ Vn
5 As per the information and explanations given to us, there are no transactions that
need to be entered in the register maintained under section 301 of the Companies
Act, 1956.
6 ln our opinion and according to the information and explanations given to us. the
Company has not accepted any deposits from the public, therefore clause No. (vi) of
Companies (Auditor's Report) Order2003 is notapplicable.
7 The Company has an lnternal Audit System, which in our opinion is commensurate
with the size of the Companyand nature of its business.
8 We have broadly reviewed the books of accounts maintained by the Company
pursuant to the ru les made by the Central Covernment for the maintenance of Cost
Records under Section 209(1) (d) of the Companies Act. 1 956 and we are of the
opinion that. prima facie, the prescribed accounts and records have been made and
maintained. We have noq however, made a detailed exam ination of the same.
9 a) The company is generally regular in depositing with appropriate authorities
undisputed statutory dues including Provident Fund, lncome Tax, Sales Tax.
Wealth Tax, Custom Duty, Excise Duty, Service Tax. Cess and Other material
statutory dues applicable to it. According to the information and explanations
given to us, there are no undisputed amounts payable in respect of lncome Tax,
Wealth Tax, Sales Tax Custom Duty, Excise Duty and Cess in arrears as at 3'lst
March, 2012 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
Sales tax / lncome Tax / Custom dutyAilealth Tax / Excise Duty /Service Taxr/
Cess/ Duty which have not been deposited on account ofany dispute.
10 The Company does not have any accumulated losses at the end ofthe financial year.
.t
1 Based on our audit procedures and according to the information and explanations
given to us, we are of the opinion that the Company has not defaulted in repayment
of dues to financial institutions or banks or debenture holders, as at 31st March,
20'12.
12 ln our opinion and according to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of security by way of
pledge ofshares, debentures and other securities.
13 The Company is nota chitfund ora nidhi/mutual fund /society. Therefore, clause4
(xiii) of the Companies (Auditor's Report) Order 2003 is not applicable.
Otlice : 5-9-22138/2. Adarshnagar, HYDERABAD - 500 063.
Ph: 2324O992/ 23232062, F ax:. 2323423 4
l--
21
ANDHRA PRADESH POWER GENERATION CORPORATION I.ITIJIITED
APGENCO eeoG5\i3d.5- 556 a356a5 =8;655 Oa)E6',
cK& 91o*olo"l,o E'6".,
14. ln our opinion. the Company is not dealing in or trading in Shares, Securities,
Debentures and other investments.
1 5. According to the information and explanations Siven to us, the Company has not
given any guarantee for loans taken by others from bank or financial institutions.
However, the Company has been a party to tripartite loan agreement for a Loan
borrowed by Andhra Pradesh Power Development Company Limited (APPDCL),
from KFW, Cermany, outstanding balance as on 31st March, 2012 is Rs.1909.78
Crores (Equivalent Euros 281 .O57 millions) and has also undertaken the
responsibility of servicingthe said loan. The Company holds 56-87olo of the Paid-
upCapital of APPDCL.
16. ln our opinion, the term loans have been applied for the purposes for which they
were obtained.
17. According to the information and explanations given to us, and on the overall
examination of the Balance Sheet of the Company, we report that no funds raised
on short term basis have been used for long term purposes.
1B The Company has not made any preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
CompaniesAct, 1 956 during the year.
19. According to the information and explanations Siven to us, the company has not
created securities or charge for the bonds issued by it.
20. The Company has not raised any money by public issues duringthe year.
21. ln our opinion and according to the information and explanations given to us,
there is a fraud on the Company noticed and reported duringthe year involvingan
amount of Rs.1.25 crores by the subordinate employee in the unit by way of
misusing the self drawn cheques for the purpose of making payment towards
statutory duties, levies, taxes, PF etc., and misappropriating the same without
paying/remifting for the meant purpose and producing fabricated/forged challans
at its NSTPD Unit, Pylon Colony, Nagarjuna Sagar.
For K.S. Rarnakrishna & Co.,

Orartered Accamtant
FRN. OO2888S
K- Rama Rao
Partner
M.No. 2O6O39
Place : Hyderabad
Date : 21' )uly , 2012
W*
APGENCOI
eo1cs@dE- 556 B56aS s8\6a5 oa)66'
COMMENTS OF THE COMPTROTTER AND AUDITOR GENERAL OF INDIA UNDER
SECTION 619(4) OF THE COMPANIES ACT, 1956 ON THE ACCOUNTS OF ANDHRA
PRADESH POWER GENERATTON CORPORATTON UMITED, HYDERABAD FOR THE
YEAR ENDED 31 MARCH 2012.
The preparation of financial statements of Andhra Pradesh Power Ceneration

Corporation Limited, Hyderabad for the year ended 31 March 2012 in accordance with
the financial reporting framework prescribed under the Companies Act, 1956 is the
responsibility of the management of the company. The Statutory Auditor appointed by
the Comptrollerand Auditor Ceneral of lndia under Section 619(2) of the Companies Act,
1956 is responsible for expressing opinion on these financial statements under section
227 of the Companies Act. 1956 based on independent audit in accordance with the
auditing and assurance standards prescribed by their professional body the lnstitute of
Chartered Accountants of lndia. This is stated to have been done by them vide their Audit
Reportdated 21 July, 2O1 2.
l, on behalf of the Comptroller and Auditor Ceneral of lndia, have conducted a

supplementary audit under section 619(3Xb) of the Companies Act, 1956 of the financial
statements of Andhra Pradesh Power Ceneration Corporation Limited, Hyderabad for the
year ended 31 March 2012. This supplementary audit has been carried out independently
without access to the working papers of the statutory auditors and is limited primarily to
inquiries of the Statutory Auditors and company personnel and a selective examination of
some of the accounting records. On the basis of my audit nothing significant has come to
my knowledge which would give rise to any comment upon or supplement to Statutory
Auditors' report under section 61 9 (4) of the Companies Act, 1 956.
Forand on the behalfof

The Comptroller and Auditor Ceneral of lndia
Place Hyderabad K.R. SRIRAM

Date 21.O9.2012 Principal Accountant Ceneral (E&RSA)
23
hi*
APGExcoI
ANDHRA PRADESH POWER GENERAIION CORPORAIION TIMIIED
esogSpda 5;56 a56a5 s6:6a5 05)85,
BAI-AI{CE SHEET AS AT 31" March 2O12
6Dg31.2o12aae"),oqo6€s 'Ht;g
Particulars Note No. FrguEs as at [le eod ol Frgures as at 0E ctd ol
o56$x)) tu655.{S Crrsn Yddta 506460 Prfliru! Yec{l. ac54!o
I EQUITY AND tlABll-lTlES Sito 66{D 6*rdrr..rb6D.r,

(1) Shareholder's
funds tat@6r.r r,6Jo,
Share Capital $roo55r, 2 2'106.80 2106.80
Reserves and Surplus ooDor 6oodD &6Jea 3 1455-26 1053.74
Shareholder's funds-Total aa@6., adD aDgi$r 3562.06 3160.54
(2) Non{urrent liabililies 5qdo arr:oou
Long - term borrowings 6gros zumr 4 10147.O4 9674.73
Employee Related Funds ia8r 6@oadadE 5 3376.25 1744.53
Deferred tax liabilities (Net).rorD6tua566\Bd6!rBr(eo) 6 792.47 582.0r
Other Long term liabilities * Sgros roosr>tr 7 227.O2 168.06
Lont-term provisions 6grog (qhl 8 1821.03 1779.48
Non<urrent liabilities : Tolal 66Jd56 arE.)aDgo 16363.81 15957.21
(3) Current liabilities alF<n tJrl
Short - term borrowints qqseos.qlF.r, 9 150.77 0.o0
Trade payables aEs a6or 10 1380.17 528.21
Other current liabilities as.riarlao) 1l 3259.76 3004.76
Short-term provisions qq5eo564hi 12 289.67 55.39
Current liabilities - Total iq, rDE IDgo s080.37 3588.36
Total Equity and Liabilities arrEg 5rro(t66D6)odD.r))E6xD 25006.24 22706.11
ll ASSETS cQrD
(1) Non {urrent Assets 6&drt, cqo,
Fixed Assets $06r.r,
(i) TangibleeAs;et5 5.sorr€Oo, 13 15035.50 r3 t46.05
(ii) lntangible Assets gs$olto €qlD 13 0.1 1 0.14
(i i i) Capital Work-i n-progress ar.b.6qa6xt5q.cA 14 3278-97 4536.s2
(iv) lntangible assets under development 14 7.62 5.06
oeqa65xq66so.:ro ct D
Fixed fusets - Total DaSJo aDgo 74322.20 17647.77
'15 51 1 .18
Non{urrent investments 6&ds5ats.r6orD 326.93
Lont-term loans and advances 6g*oe ow<D 6DodtD Ddtaq) l6 501.8r 661.80
Non- current Assets - Tolal 6qd,;J6 oqo arrgo 193 35.19 18676.50
(2) Current Ass€ts {rE6Ja,
Cu rrent nvestments ir6 5q.r6r.!
I 17 o.00 150.00
lnventories 5NA 66rgra) 18 690.59 563. r9
Trade receivables 85.)65 6E5 lForro, 19 4786.25 2716.14
Cash and cash equivalents fil6r6oodD6.16,6155"6e6a 20 70.o7 499.93
Short -term loans and advances qrp*trirEo)SldDodDoo, 21 5r.35 21.27
Other current assets esir(,.QeD 22 72.79 79.08
Current Assets - Total .eqoarrqo 567r.05 4029.61
Total Assets dgo;bgo 25006.24 22706.17
See accompanying notes to the financial statements ?5 5# 6r6*ar rd56'r.a5a
This is the Balance Sheet referred to in ou, report of even date
For K.S. Ramalrishna & Co., For and on behalf of the Board
Ourtercd Accanntants
Fm ReE L No. OO2SaaS
K lama nao D. Prabhakar Rao K. Vijayanand Dinesh Kumar
PartE loint tvtanaging Diredor ,vtanaging Director Chainrnn
M.No. 206039
S. Srinivasa Rao G. Adinarayana
Place : Hyderabad FA & CCA (A/cs) Company Secretary
Date :21'Ju|y,2012
24
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f!8
EHc9.
eeoLqsG5a.t 555 ai565s s€t)6r]5 0A)86
PROFTT AND LOSS STATEMENT FOR THE YEAR ENDED 3I " MARCH 201 2
6rg3i,2o12DqiPoootad6+ar6€6 Hlg
Particulars Nole No. Current Year Previous Year
a566DaD ira656. 6aj55o5q6o 611 5o5{!o
I Revenue from operations € 6aa 24 1 1438.51 8917.70
ll Other lncomes@d)o 25 52.O1 73.27
lll Total Revenue (l + ll) ao{g @doo 11490.52 8990.97
lV Expenses qcro
Cost of materials consumed aoarSoo 5qpo {tdro 26 6837.47 4549.46
Employee Benefits expense aQg:6dr{!6 qdoo 27 770.64 1321.92
Finance Costs ?6 28 1649.36 1369.23
"{o)
Depreciation and amortization expense 11o2.02 977.18
d6rat6., 6Jadr, 5qE rA5 t6o
Other expenses (Cost of power, R&M, Adm. & Genl. Exp,
Prior period items) s sxt&.., 29 357.36 3 54.89
5ofro6& F6.. tql.a, SDdrr.fr'
"qo<a655.5o6{1*ar&
605,1660,F6aror)
Total Expenses aDgo r0716.85 8572.64
V "Srr, and Extraordinary items
Profit before Exceptional
and tax (lll - lV) oa€a oaeuo ?t{o, & 5atrrgr 6Do.ir.r6o 773.67 418.29
Vl Exceptional items o6E6rri*la, 30 (0.1 t) (10s.12)
Vll Profit before extraordinary items and tax (V-Vl) 77t.74 523.41
oeF6o !dto, &adD 66Lo *drogJ 6Doalr.160
Vlll Extraordinary items o @o *doo 31 8.73 13.80
lX Profit before tax (Vll-Vltl) 6EUt 61106r('00 765.O5 -s09.6r
X Tax expense: 66\., tdraD
(1) Current Tax 6&6 6o5q6.*L 153.O7 102.32
(2) Deffered Tax - Current Year 134.62 94.O7
aorE $d6Ea6 a6l€q6 606+60)
(3) Deffered Tax - Previous Years 75.84
5Forr $dtE65 a6l(.r6d 5o6+65iro)
Xl Profi/(Loss) for the period from continuing
operations (ix-x) *n6 a.ra @{o / (6f) 401 .52 313 .22
Xll Profit /(Loss) discontinuing operations
Xlll Tax Expense of discontinuing operations
XIV Profit /(loss) from discontinuing operations (after tax) (Xll - Xlll)
XV Profit /(Loss) for the period (xl+XlV) 1160 401.52 313.22
XVI Earning per equity share (in Rs.) (Basic & Diluted) :
6rr.1660 aaa a,gp6g €!6 1 9.06 14.87
(Face value of Rs.l 00 per Share) 1aro.5rp.ors 6E 1oo/-)
See accompanying notes to the financial statements €85 6S nFaS.rr €666.c66D.

This is the Profit and Loss Statement referred to in our report of even date
For K.S. Rarnalrishna & Co., For and on behalf of the Eoard
Chanered Accountantg
Firm legn. No. 0O28E8S
l(. narnanao D. Prabhalar Rao X. Viiayanand Dincsh Kumar
Parhcr Joint Managing Direclor Nla,,,agtng,Ohex,ot Chairman
M'No' 2o6039
s. srinivasa nao G. Adinarayana
Place : Hyderabad FA & CCA Wcr,) Compary kraary
Date ; 2'1" luly , 2O1 2
25
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IPG ENC O
ANDHRA PRADESH POWER GTNERATION CORPORATION TIMITED
eoq_c6@dE 556 a.sdas s8)da5 oa)EE
Sriramsagar Dam
.. I
I I
I
t
NOTES FORMING PART OF THE ACCOUNTS

I. ACCOUNTING POLICIES
1 Basis of Accounting
1.1 The Company prepares its accounts on accrual basis under historical cost
convention as per the Cenerally Accepted Accounting Principles. The Company
is governed by the Electricity Act 2003, therefore, the provisions ofthe said act
read with the rules thereunder prevail wherever the same have been inconsistent
with the provisions of the Companies Act 1 956.
2 Use of Estimates
2.1 The preparation of financial statements requires management to make certain

estimates and assumptions that affect the amount reported in the financial
statements and notes thereto. Differences bewveen actual results and estimates are
recognised in the period in which they materialise.
3 Fixed Assets
3.1 Fixed Assets are shown at historical cost.

3.2 ln case of commissioned assets, where final seftlement of bills with contractors is
yet to be effected, capitalization is done on provisional basis subject to necessary
adjustment in theyearof final settlement.
26
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PEENCO
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IfvlITED
eso65@dE' 556 a3s6a5 eO36a5 OArE6
4 CapitalWork in Progress
4.1 Employee cost, Administration & Ceneral expenses incurred for the year are
apportioned on estimated 'usage basis'to Capital Work-in-Progress.
4.2 Claims for price variation in case of contracts are accounted for on acceptance.
5 lmpairment of Assets
5 The Company evaluates the impairment of losses on the fixed assets wheneverevents
or changes in circumstances indicate that their carrying amounts may not be
recoverable. lf such assets are considered to be impaired the impairment loss is then
recognised for the amount by which the carrying amount of the assets exceeds its
recoverable amount, which is the higher of an asset's net selling price and value in
use. For the purpose of assessing impairment, assets are grouped at the smallest level
for which, there are separate identifiable cash flows.
6 Assets taken on Lease

6. 1 For assets taken on leasepriorto 14-2OO1and for assets taken underoperating lease,
lease rentals payable are charged to Profit and Loss Account.
7 Foreign Currency Transactions
7.1 Foreign currency transactions are in itially recorded at the rates of exchange ruling at
the date of transaction. Foreign currency loans/deposits, liabilities are reported with
reference to the rates of exchange ruling at the year-end.
7.2 The difference resulting from such translation as well as due to payment/discharge of
liabilities in foreign currency related to Fixed assets is adjusted in their carrying cost
and that related to current assets is recognised as revenue/expenditure during the year
as per the transition provisions of the Accounting Standard (AS) 11 - 'The effects of
Changes in Foreign Exchange Rates' ofthe Companies (Accounting Standards) Rules
2006 as amended from time to time.
I lnvestments
8.1 Long-term lnvestments are carried at cost. Any decline in the value of the said
investments, other than a temporary decline, is recogn ised and charged to Profit and
Loss Account.
8.2 Current lnvestment are carrid at lower of cost or fair market value. Mutual funds are
valued at lower of cost or net assetvalue.
8.3 lncome on investment other than mutual funds is accounted on accrual basis and on
mutual funds is accounted on maturity/ realisation.
9 lnventories
9.-l
m
lnventories, otherthan scrap, are valued at cost on weighted average basis
IPIGENCO eeoLCSG5d.t 556 as;56a5 ed)Bas Oa)86'
9.2 Scrap is valued at realisable value.
9.3 Provision for diminution if any,invalue of materialsand spares is made from time
totime.
l0 Provisions and Contintencies

10.1 The Company creates a provision when there is a present obligation as a result of a
past event that probably requires an outflow of resources and where a reliable
estimate can be made of the amount of the obligation. A disclosure fora contingent
liability is made when there is a possible obligation or a present obligation that
probably will not require an outflow of resources or where a reliable estimate of
the amount of the obligation can not be made.
1 1 lncome Recognition
11.1 Sale of power is accounted for based on guidelines laid down under APERC
Regulations and Power Purchase Agreements with APDISCOMs and Inter-state
Sale of Power is based on interstate agreement with the Covernment of Orissa and
Covernment ofAP.
1 I .2 Revenue from O&M, Supervision and Other Contracts (inclusive of service tax) are
accounted for based on the agreementdarrangements with the parties concerned.
1 1.3 The Surcharge on late payment/overdue Trade Receivables for sale of energy and
the damageJpenalties recovered from contractorVsuppliers are recognised when
no significant uncertainty exists as to measurability or collectability.
12 Expenditure
12.1 Expenditure is accounted for on the accrual basis and provision is made for all
known losses and liabilities un less stated otherwise.
12.2 f ransit, Windage and Handling Loss of coal along with normal loss due to
carpeting of coal is charged offto revenue.
l3 Depreciation
13.1 Depreciation is charged on straightJine method as per rates notified by the
Covernment of lndia except where actual cost does not exceed Rs. 5000 in which
case it is charged I 00% in the same year.
13.2 Depreciation on additions to/deductions from fixed assets is provided on pro-rata
basis from/upto the month in the year in which the asset becomes available for
use/disposal.
13.3 Where the cost of depreciable assets has undergone a change during the year due to
increase/decrease in longterm liabilitieson account of exchange fluctuation, price
28
Jr^ ANDHRA PRADESH POWER GENERATION CORPORATION TIMITED
eeaG5G56E- 556 ae56a5 s8)6a5 0A)86
adjustment, change in duties or similar factors, the unamortized balance of such asset is
depreciated prospectively over residual life on the basis of the rate of depreciation.
13.4 lnternal electrical wiring, fittings etc., are treated as part of buildings and as such
depreciation applicableto buildings is charged thereon.
l4 Research and Developmenl

14.1 Research and Development expenditure is charged to the Profit and Loss account in
the year of incurrence. The expenditure on fixed assets relating to Research and
Development is treated in the same way as otherfixed assets.
15 Government Grants
15.1 C rants related to reven ue shown as a credit in the profit and loss statement under the
is
heading'Other lncome'and Crants related to specific assets are reduced from the
gross value of the asset on completion of works in arriving atthe book value.
16 Employee Cost and Retirement Benefits

16.1 Liability for pension, gratuity, leavey'encashment benefits and medical benefits is
provided based on actuarial valuation made atthe end of the year which is computed
using projected unit credit method. GainVlosses arising out of actuarial valuation are
recognised in the profit and loss account as incomey'expense.
16.2 The Company makes defined contributions to the Regional Provident Fund
Commissioner underthe provisions of E P F & M P Act for provident fund and pension
for the employees who are recruited on or after 1-2-1999. The Company has no
further obligation beyond the month ly contributions.
1 6.3 The contributions made by the employees for Ceneral Provident Fund are credited to
APGENCO General Provident Fund Trust. The Company has obligation to make good
the shortfall if any between the return from the investment of the Trust and the notified
interest rate.
1 6.4 The contributions made by the employees towards Croup lnsurance Scheme are
carried over under the head 'Employee Related Funds' along with other long term
Employee Related Funds.
17 Expenditure on Survey and lnvestigation

17.1 Expenditure incurred on identification, survey and feasibility studies before
ascertaining feasibility ofthe project is charged to the profit and loss account in the
year of incurrence.
29
W^
APGENCO eoscic5dF 556 ae56as ed)6a5 oa)EE
18 Borrowing cost
18.r Borrowing cost (lnterest etc.) that is directly aftributable to the acquisition, construction
or production of a qualifying capital asset is capitalised as part ofthe costofthat asset.
The borrowing cost incurred on funds borrowed generallyand used forthe purpose of
obtaining a qualifying capital asset, is capitalised applying a capitalisation rate on
weighted average basis. Other borrowing costs are recognised as an expense in the
period in which theseare incurred.
l9 Prior Period ltems

19.1 Adjustments arising due to errors or omissions in the financial statements of earlier
years are accounted under'Prior Period ltems'.
20 Taxeson lncome
20.1 Provision is made for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted or substantially enacted tax rates.
20.2 Deferred tax assets are recognisedonly if there is reasonable certainty that they will be
realised and are reviewed for the appropriateness of their respective carrying values at
each Balance Sheet date.
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APGENCO
e:o|.lf@6.E. 556 ee56a5 so36a5 Oa)E3E
II NOTES TO ACCOUNTS
1 . The financial statements have been prepared in accordance with the Revised Schedule Vl of the
Companies Act 1956 to the extent applicable and the necessary details have been disclosed in
the said statement as per Part I & ll ofthe Schedule.
BALANCE SHEET: Rs. in Crores

As at As at
3 I st March 2012 3'l st March 201 1
2. SHARECAPITAL
2.1 Authorised Capita! :
25.00,00,000 equity shares of I 100 each 2s00.00 2s00.00
2.2 lssued, Subscribed and Paid up Capital

21,06,80,007 equity shares of Rs. 100 each 21 06.80 21 06.80
(7 shares of Rs. l0O each issued for cash
and 21 06800O0 equity shares of Rs. 100 each
issued for consideration other than cash
as per the transfer scheme)
Total 2106.80 2r06.80
2.3 Reconciliation ofthe Shares outstanding at the

No. o{ Sharcs Rs. in Crores No. of Sharcs Rs- in Crores
beginningand at the end of the reporting period:
Ousanding Shares at the beginning of dre year 21Uffi7 2106.80 21ffi7 2106.80
Shares issued during the year
Shares outstanding at the end of the year 21Uffi7 21 06.80 2'tw7 21 06.80
As at As at
2.4 Details of the Shareholders holding more than
3143-2012 3143-201 r
5% (percent) shares in the Company : No. of Shares %of holding No. of Shares %of holding
Covernment of Andhra Pradesh

including its nominees 21068m7 100% 2.1Cffm7 100Y"
2.5 The Company has only one class of shares i.e., equity shares ranking parri passu with all
respects including entitlement ofdividend, voting and repayment of capital. Each equity share
carries one vote-
3l
W^
APGEIICO eeoLcSG56F 556 a3;56;5'5 s6)655 05)85
Rs. in Crores
As at As at
AND SURPTUS 3143-2012 3r43-201 1
3. RESERVES
Capital Reserve 7.77 7.77
Ceneral Reserve
As per last Balance Sheet 149.31 6.26
Add: Trans{er from Bonds Redemption Reserve 120.18 143.05
sub-total 269.49 149.31
Bonds Redemption Res€rve
Add: Transfer from Profit & Loss Account 91 .72 82.61
Less: Transfer to Ceneral Reserve 120.18 143.05
subtotal 237.35 265.81
Surplus in Profit & Loss Account
Add: Transfer from Profit & Loss Account 401 .52 313.22
Less: Transfer to Bonds Redemption reserye 9.t.72 82.61
subtotal 940.65 530.85
TOTAT 1455.26 1053.7 4
NON-CURRENT LIABITITTES :
4. TONG TERM BORROWINCS Rs. in Crores

As at
4.1 Secured Loans
As at
3143-20] 2 31{3-201'l
4.1.1 Borrowing from Bank:
Andhra Bank 461.66 272.25
Less : Current portion 30.00 431 .66 30.00 242.25
Secured by (a) Plant & Machinery of Unit -3 of
I Srisailam Right Bank Power House-l l0 MW.
(b)Two Boilers and Air Pre-Heater in Unit I & ll of
stage 1 of Dr. NTTPS, Coal Handling Plant of Stage
I & ll of Dr. NTTPS & Turbine Cenerator and Exciter
of Unit lof Dr. NTTPS Stage I situated at
lbrahimpatnam, Vijayawada, Krishna Dist. (c)
Exclusive Hypothecation of (1 ) track hopper of the
project worth Rs. 350 Crores and (2) Railway track
from lammikunta Railway station to KTPP of
Rs. 200 Crores. (d) Pari passu charge on the proiect
assets of I x600 MW Kakatiya Thermal Power
Proiect Stage Il at Dubbapalli village in Warangal
District.
32
ANDHRA PRADESH POWER GENERATION CORPORATION [IMITED
W^
APGENCOI eao6515:68- ;556 d56a5 ser36re5 oa)EE
Rs. in Crores
As at As at
3143-2012 31{3-201 1
State Bank of Hyderabad 563.87 458.05

Less : Current portion 100.88 462.99 92.35 365.70
Secured by (a) ESP of Stage lll, Ash Handling Plant of
DT.NTTPS Stage ll & lll; Mill Motors DT.NTTPSJII for
Rs.121.00 Crores.(b)Cenerator transformer-2
Auxiliary Transformers4. Station nansformers-2; 6.6
Switch gear-l 7; 16.5 KV Bus ducts for Unit 7&8 of
Dr.NTT6; lbrahimpatnam; Krishna Dist worth
Rs.34.00 Crores & Coal Handling Plant of DT.NTTPS
Stage-lll; lbrahimpatnam; Krishna Distworth Rs. 66.00
Crs and Unit 8 of Nagariuna Sagar Hydro Projecq
Nagaiuna Sagar; Nalgonda Dist worth Rs. 15lCrs. (c)
Boiler & Air Preheater of Unit lll of DT.NTTPS Sage-ll
for Rs.64.00 Crores. (d) Boilerof unit5 of Dr. NTTPS &
Coal handling plant of DT.NTTE Stage ll. (e) Boiler of
unit 4 and 6.6 KV switchgear of Dr. NTTPS srage ll and
4OO KV Gas insulated switchgear of SRBHES.
(0Turbine Cenerator & Auxilary Equipment of Unit lof
RTPPI for Rs. 120.00 Crores and Turbine generator &
Auxiliary Equipment of Unit Il of RTPP stage I for
Rs.126.00 Crores. (g) Paripassu charge on stoc*,
cunentassets and receivables.
Central Bank of lndia 39.85 44.95

Less : Current portion 5.99 33.86 s.56 39.39
Secured by present and future movable machinery
etc., ofAsh handling plant ESPs and Air pre.heaters
of Plant 2x2.1 0 MW of RTPP stage-1 .
Karnataka Bank 39.38 41.30

Secured by Cenerator & Auxiliaries, Wagon
tipplerand Switch yard of UnitJV of DT.NTTPS.
Pulab & Sindh Bank 204.60 233.31

Secured by (a) 4ool0/ Cas insulated Switch gear
complete with SF6 gas metal enclosed double busbar
wifr SF6 Braker, CTs Etc ofSLBPH. (b) Unit- I ofRTS B
consisting of turlcine, generator, generator transformer
and its auxiliaries situated at RTS B. (c) Unit 9 of
KTPSV turbo generator and its auxiliaries.
33
V,^
APGENCO'
eeaLl5G56F 556 a356a5 s5)da5 Oa)86
Rs. in Crores
As at As at
31-03-2012 3143-2011
Karur Vysya Bank 67.50 84.64

Secured by (a) RTPP Stage - I Mill motors, 6.6 KV
Switch Cear, 22 KV, 7.7 KV Busduct and
Cenerator Transformer, situated at Kalamala, YSR
Kadapa Dist. (b)Assetsof Unit 5 ofKTPS- B station.
State Bank of Mysore 20.06 30.06

Secured by unencumbered assets available with
Srisailam Right Bank Hydro Electric Scheme Unit 2
of 1 '10 MW, Book Debtsand receivables of Srisailam
Right Bank Hydro Electric Scheme Unit 2 ol 11O
MW & the whole of the movable properties of
Srisailam Right Bank HES Unit 2 of 1 10MW.
Bank of Baroda 345.45 359.75

Secured by (a) Unit 3 & 4 of 1 1 5 MW each turbine,
generator and auxiliaries of Lower Sileru Hydro
Electric Scheme and 25 MW turbine, generator
and auxiliaries of Donkarai Hydel station. (b)
Assets of KTPS - C of Unit 7 & 8.
Vilaya Bank 326.40 364.99

Securcd by (a) Turbine generator and transformers of
Unit 4 and 7 of Srisailam Right Bank power station.
(b)Unit 1 &2 each of Upper Sileru Hydro Electric Sdenre
& Coal Handling Plantand Switchyard of RTPP-|.
Tamilnad Mercantile Bank 80.68 36.94

Secured by Assets ofAHP- RTPP Stage-l and Assets
of CHP- RTPP- l.
Canara Bank 123.28 90.82

Secured by (a) Steam Generator and its auxiliaries
of Unit 9 of KTPS stage V. (b)Turbine generator of
Hydro Power Ceneration Station of Nagarjuna
Sagar Right Canal.
34
ANDHRA PRADESH POWER GENERAIION CORPORATION TIIllIITED
APGENCO eeoG5G5d.5- r)56 a35645 e8)655 0A)86
l- As at
Rs. in Crores
As at
31q3-2012 31{3-201 r
lndian Overseas Bank 140.26 119.19

Less : Current portion 32.50 107 .76 0.00 1 19.19
Secured by exclusive first charge on the pro.ject
assets of the Pulichintala Hydel Power Pro.lect
(4X30MW).
Dhanalakshmi Bank 17.92 20.27

Less : Current portion 2.29 15.63 2.35 17 .92
Secured by First charge on the plant & machinery

installed, spares used in the lV H E power
generating unit of Sri Ram Sagardam.
Total Loans - Bank 2078.71 1883.21
4.1.2 Borrowings from Financial lnstitutions:

4.1.2.1Loans from Power Finance Corporation 4733.78 4345.80
Secured by (a) whole of the movable properties of the
borrower for units-lV ,o y1| 6f \agarjunasagar HEP
and Unit-lll of Nagarjunasagar right canal power
house, in addition to the future assets of RTPP stage ll.
(b)Present and Future Assets (Electromechanical
Equipments) of KTPS StageVl(lx500MW& Steam
generator, Turbo generator & Auxiliaries of UnirlO
KTPS Stage-V (25OMW)& Cenerator and its
auxiliaries, Coal Handling Plant, Wagon tipplers,
Switchyard Unit-9 of KTPS Stage-V. (c) The whole
movable propertievFuture assets (equipments) of
RTPP Stage lll Unit 5 and Pari-passu charge on Unit'l
of Srisailam Right Bank HES (hypothecated to the
present lenderfor loan No.31305009 and 31302007).
(d) UnitV & UnitVlof SRBHEP, consistingof Turbine,
altemator and Transformer of Rs. 222.38 Crores in
addition to whole future movable assets of PJHEP.
(e)Turbine Cenerator set and its Auxiliaries of Unit
1 & 2 of RTPP Stage -l of Rs. 298 Crores, Future
Assets of Nagarjunasagar Tailpond Dam of Rs. 94
Crores & Pari-Passu Charge on Unit-1 of SRBHES
(Hypothecated to PFC Loan No. 31305009)
Rs.40 Crores. (0 Hypothecation of 4 Nos. Turbo
Generators of KTPS-A station which was
ANDHRA PRADESH POWER GENERAIION CORPORATION [IMIIED
APGENCO eeoGsGSdF 556 ar56a5 *83655 Oa)86
Rs. in Crores
As at As at
3-t43-2012 31-03-201 1
to the present lender for loan

hypothecated
No.31304023, 31304012 and 31 31 2002.
G) Hypothecation of Boiler of Unit 6 of Dr. NTTPS
- lll and Air pre heater of Unit-6 of Dr. NTTPS - lll.
(h) Hypothecation of entire Unit 1 of LSHEP of
1 1 5 MW of Rs. 108.38 Crores. (i) Hypothecation
of entire Unit-ll of LSHEP of I 15 MW of Rs.
'105.00 Crores. (i) Hypothecation of Unit-lll and
Unit- lVof UpperSileru Hydro Electric Project.
(k) Unit I & llofNagarjuna Sagar Left Canal HES & Pari-
passu charge on unit 1 of Nagarjuna Sagar HES
(hypothecated to the present lender for loan
No.31305010). (l) Unit 1 of Lorarer Sileru Hydro Electric
Pqlrd\airEd66 Rs. lffi.38Crues (m)Hypotfrccation
of Power Transformers and Switchyard equipment of
Upper Sileru Power Project House Stagell. (n) Unit 1
of Srisailam Right Bank Power House value of assets
k. I
126.24 Crores. (o) Unit of Nagarjuna Sagar
Hydro Electric Project value of assets Rs. 'l 'l 1.19
Crores. (p) Whole of the movable properties of future
assets (equipments) of the lower jurala HEP and
Boiler, Turbineand its auxiliaries of un its 7&8 of KTPS
C station. (q) the whole of the movable properties of
l x6OOMW coal fired drermal power project, stage lV,
unit 6 at the existing RTPP site at proddutur mandal,
YSR Kadapa District.
4122 Loans from REC 3309.34 3297.12

Less : Current portion 258.OO 3051.34 260.73 3036.39
Secured by (a) SG & TG Package with auxiliaries
worth Rs. 1060 Crores of Dr. NTTPS-Stage-lV, LP
piping, CW piping BCW pump and Miscellaneous
equipment of Dr. NTTPS - lV of Rs. 500 Crores and
Turbo generator of Unit 2 Dr. NTTPS Stage l, Turbo
generator of Unit 3,4of Dr. NTTPS Stage ll & Turbo
generator of Unit 5,6 of Dr. NTTPS Stage lll worth
Rs. 497.03 Crores. (b) Plant & Machinery SC & TC
package etc, at Chelpur village and Boiler ESP
instrumentation and control equipment at RTPP
lof Unit l& ll. (c) Future assets to be created out
Stage
of the loan for KTPP Stage-ll i.e., Steam Cenerator,
Turbine and generator with auxiliaries and
Balanceof Plant (Mechanical, Electrical & Civil).
APGEIICO eeoLqsESdE' 556 a356a5 *6)6a5 05)85
Rs. in Crores
As at As at
3143-2012 31-03-201 1
4.123 Loans from LtC "t.77 3.54

-t.77
Less : Current portion 0.00 1.77 1.77
The loan transferred and vested with the Company
under the Andhra Pradesh Electricity Reform
(Transfer Scheme) Rules 1 999 and continued as per
the old terms and conditions; therefore no fresh
charge has been created underthe provisions ofthe
Companies Act 1 956.
Subtotal (Financial I nstitutions) 7402.s6 7021.46
Total (Secured Loans) 9481.27 8904.67
Rs. in Crores
4.1.3 Terms of Repayment of Secured Term Loans Balance OJEtanding Balance Ortstanding
As at 31-03-2012 As at 31{3-2011
Residual Maturity
Term Loans from Banks
1-3 years 36.74 24.78
3-5 years 443.37 250.92
5-10 years I598.6 1607.51
I 0 years above
Sub - total 2074.71 r883.21
Term Loans from Fls
1-3 years 6.96 1.77
3-5 years 52.39 14.63
5-10 years 2021.U 946.18
10 years above 5321.57 6058.88
Sub - total 7402.56 7021.46
Total 9481.27 8904.67
4.2 UNSECURED TOANS

Rs. in Crores
4.2.1 Un-Secured Non-Convertible APCENCO Bonds*:
As at As at
(1) 8.4ool. Unsecured Non{onvertible APCENCO 31{3-2012 31-03-20r 1
Bonds (Series ll) (3971bonds of Rs.l0,O0,OOO

each, redeemable in 2014. The earliest date of
redemption is 21.03.201 4) 397.10 397.10
(2\ 7.800/. Unsecured Non{onvertible APGENCO
Bonds(Series lll) (1892 bonds (previous year 5998
bonds) of Rs.10,00,000 each, redeemable 30% in
2012,3O'1, in2O13 and 40'l" in 2014 earliest date of
redemption is 1 3.06.2O1 2) 189.20 589.80
Less : Current Portion / call option 56.76 132.44 400.60 189.20
ANDHRA PRADESH POWER GENERATION CORPORATION LIIIIIITED
APGEXCO eeoG5G5dF 556 ae56A5 v6)645 Oa)66',
Rs. in Crores
As at As at
31-03-20r 2 31-03-201 1
*Guaranteed fully, uncond itionally and

irrevocably by the Covernment ofAndhra Pradesh
in respect of repayment of principal, payment of
interest and other charges ifany.
4.2.2 Unsrured Loans from Bank and Financial lnstiMions:

4.2.2.1 Loans from PFC 91.50 150.42
Fully, unconditionally and irrevocably guaranteed
by the Covt. of Andhra Pradesh in respect of
repayment of principal, interest.
4.2.2.2 Loans from REC 65.44 78.52
Ful ly, unconditionally and i rrevocably guaranteed
by the Govt. of Andhra Pradesh in respect of
4.2.2.3 Loans from Banks 30.82 35.83
Less : Current portion s.00 25.82 s.00 30.83
Ful ly, unconditionally and irrevocably guaranteed
by the Covt. of Andhra Pradesh in respect of
Total (Unsecured) 665.77 I 774.06
Rs. in Crores
4.2.3 Terms of Repayment of UnSecured Term Loans Balance Ortstanding Balance OJtstanding
As at 31-03-2012 As at 31-03-2011
Residual Maturity
Bonds
1-3 years 529.54 397.10
3-5 years r 89.20
Sub - total s29.54 586.30
5-10 years 25.82 30.83
Sub - total 25.42 30.83
Terms Loans from Fls
1-3 years 22.88 15.14
3-5 years 35.18 76.36
5-'10 years s2.35 65.43
Sub-Total 110.41 156.93
Total 665.77 774.06
38
W*
laPcE lcol
eeoG5E56F 556 a=5645 s6a6a5 Oa)66',
Rs. in Crores
As at As at
3143-2012 31{3-201 1
4.2.4 Loans from Government

4.2.4.1 The Company entered Tripartite Loan agreement for
EUR 281.057 millions (Rs.1909.78 crores) with
Ws. KFW, Frankfurt am Main, Cermany for financing to
Krishnapatnam Power Project (2X800 MW) of /Ws.
APPDCL as Project Executing Agency. As per the
agreement, the Loan and servicing of the Loan is passed
through the Covernment of lndia, the Covernment of
Andhra Pradesh and the Company on back to back
basis. The loan is not accounted for in the Company's
books of accounts. The total amount of loan drawn by
APPDCL in Euros to the end of 31st March 2012 as per
the GOI records is equivalent to Rs. 1909.78 crores
(Previous Year Rs. 5I 0.30 crores)
4.2.4.2 Loan from the Government of Andhra Pradesh (CoAP) to

the erstwhile (financed by the Asian Development Bank)
was received by APSEB, accounted and repaid before
unbundlingof erstwhile APSEB (i.e., before 1.2.1999).
But due to delayed receipt of communication from the
Covernment of lndia, the CoAP issued loan sanction
orders for Rs. 34.32 Crores on 12-11-1999 and lor
Rs.57.15 Crores on 3O.9.2OO2 which were accounted
and repaid by APSEB before 1-2-1 999. Since the loans
were already repaid by the erstwhile APSEB, there is no
liability for the Company. Hence the liability for
principal and interest thereon is not accounted in books
ofthe Company.
Total l-oans (Secured + Unsecured) 10147 .O4 9674.73
5 EMPIOYEE RETATED FUNDS

5.1 Pension and Gratuity bonds
Under the Andhra Pradesh Electricity Reform Act 1998
and the Andhra Pradesh Elearicity Reform (Iransfer
Scheme) Rules 1999, the responsibility of discharging the
past liabilities of employee pension and gratuity of the
erstwhile APSEB forthe period priorto l st February, 1999
is with the Company. Consequently, the bonds were
issued lointly to the trustees ofthe Andhra Pradesh State
39
APCENCO eeaLlSG5dF 555 a35da5 s8365.5 0A)86
Rs. in Crores
As at As at
3143-2012 31-03-20',r 1
Electricity Employees Master Pension and Gratuity Trust
(MasterTrust). The Company shall have a rightto 'call'the
wholeorany part ofthe bonds.
The bonds are guaranteed fully, unconditionally and
I
irrevocably by the Government of Andhra Pradesh in
respect of repayment, payment of interest and other
I charges ifany.
-112-1.43
I (al '132O43 Nos of non-convertible, non-transferable, 1078.43
non-marketable redeemable bonds of Rs. 1,00,000/-
each; repayable in varying monthly instalments in 31
years upto 2033. As per the terms of the bonds, amounts
paid to the pensioners of the erstwhile APSEB is
accounted as repayment/interest on these bonds for the
year. The outstanding balance after excluding current
portion of Rs.43 crores (previous year Rs. 31 crores) is
shown.
(b) 306652 Nos of non-convertible, non-transferable, 2294.52 2394.52

non-marketable, redeemable bonds of Rs. 1,00,000/-
each; repayable in varying monthly instalments in 2/
years upto 2029. fhe percentage share of the master
trust and company trusts is subject to change based on
the report of the actuary. Presently, 74% pension
(including commutation) and gratuity paid during the
year to the employees as on lst February 1999 of the
erstwhile APSEB has been accounted as repayment/
interest on these bonds for the year as per the terms of
the bond. The outstanding balance after exluding
current portion of Rs. 100 crores (previous year Rs. 40
crores) is shown.
5.2 Provident fund Bonds

Cuaranteed fully, unconditionally and inevocably by the 0.00 230.12
Covernment of Andhra Pradesh in respect of repayment,
payment of interest and other charges if any- The bonds
carry floating rate of interest on parwith the rate of interest
on Ceneral Provident Fund. The present rate of interest is
8.6% per annum. The date of redemption of bonds is
29th May 2012 and current portion is of Rs. 230.1 2
crores (previous year Rs. nil)
J*^ ANDHRA PRADTSH POWER GENERATION CORPORATION TIMITED
eeaG5G56F 556 a356a5 18)6A5 Oa)E6',
Rs. in Crores
As at 3143-2012 As at 3l{3-201.1
5.3.1 CIS-Savings Fund 3.08 2.71

5.3.2 CIS-lnsurance Fund o.22 0.1 5
TOTAT 3376.25 3744.93
6. DEFERRED TAX LIABI TITIES (NEI)

As per Accounting Standard (AS -22) on accounting for
Taxes on income of the Companies (Accounting
Standards) Rules 2006, the deferred tax liabilityas on 31st
March comprises of the following:
Defened Tax Liability related to fixed assets 1523.89 1457.49
Deferred Tax Asset related to Unabsorbed Depreciation $2.92\ (249.52\
Deferred Tax Asset relatingto Payments u/s 438 of lTAct (678.50) (62s.96].
Net Deferred Tax Liabilig (Asset) 792.47 582.01
7 OTHER LONG TERM LIABILITIES

Others:
Security Deposity'Retention amounts etc 227.O2 168.06
TOTAI. 227.O2 168.06
The Company is making efforts to identify the Micro,
Small and Medium enterprises as defined under "The
Micro, Small and Medium Enterprises Development Act
2006." However based on the information available with
the Company, the amount due to Micro, Small and
Medium Enterprises for the period of more than 45 days
and interest there on for delay in payments is nil.
8. TONGTERM PROVISIONS
PROVISION FOR EMPTOYEE BENEFITS
(Refer Note Nos. 12 atrd 27)
Provision for Pension and Gratuity
I As per the last balance sheet 1615.01 882.81
Add: Additions during the year '141 .54 780.46
Less: Payments/adiustments during the year 113.85 48.26
sub -total 1642.70 1615.O1
Provision for leave Benefits
As per the last balance sheet 163.98 95.24
Add: Additions during the year 0.00 63.62
Less: Payments/adiustments during the year 19.35 (5.1 2)
Sub -total 144.63 153.98
41
ANDHRA PRADESH POWER GENERATION CORPORAIION TIMITED
APEENCO eeeL6E5dE' 556 a356a5 sbA6a5 03)86
Rs. in Crores
As at 31-03-2012 As at 3143-201 1
Provision for Medical Benefits

As per the last balance sheet o.49 0.45
Less: Payments/ad.iustments during the year 0.00 2.93
Sub -total 33.70 0.49
TOTAL 1821.03 1779.44
9. SHORT-TERM BORROWINCS
(a) LOANS REPAYABLE ON DEMAND

SECURED LOANS REPAYABI-f ON DEMAND
"t50.77
From Banks
TOTAT 150.77 0
Cash Credit limits from various Banks:- First charge on

inventory, Receivables and current assets on Pari-passu
basis, in additions to Government Cuarantee in few cases
and machinery located at unit I & ll of Dr. NTTPS.
10. TRADE PAYABTES
ForCoal and Oil 1242.57 410.69
For Purchase of Power 5.O2 8.36

ForO & M Supplies/Work 132.58 109.16
TOTAL 1380.17 524.21
11. OTHER CURRENT TIABILITIES

(a) Current maturities of Secured long{erm debt 994.53 898.31
(b) Cunent maturities of Unsecured Long term debt 130.62 499.94
(c) Current maturities of PF and Pension Bonds 373.12 71 .OO
(d) lnterest accrued but not due on borrowings 125.45 121.76

(e) lnterest accrued and due on borrowings 24.67 22.65
(0 lnterest received in advance 0.09
* 747.91 679.63
G) Deposits and Retentions From Suppliers/Contractors
(h) Other payables
For Staff 83.64 65.18
For Expenses 50.52 50.56
Capital liabilities and others 729.21 595.73
TOTAL 3259.76 3004.76
42
ANDHRA PRADESH POWER GENERATION CORPORAIION TITllIITED
APGENCO eeoGsG5d5 556 a:56a5 s616a5 OA)EE',
Rs. in Crores
As at 31{3-2012 As at 31{3-201 1

Small and Medium Enterprises as defined under "The
and interestthere on fordelay in payments is nil.
* Deposits and Retentions from Suppliers / Contractors
include penalties etc., recovered from Contractors/
Suppliers where there is uncertainity in ultimate
collection/recovery.
12. SHORT.TERMPROVISIONS
(a) PROVISION FOR EMPTOYEE BENEFTTS
(Ref. Note No. 8 and 27)
Add: Additions during the year 97 .14 32.O4
Less: Payments/adjustments during the year (8s.s 1) 31 .95
214.78 32.13
Add: Additions during the year r 3.31 28.06
Less: PaymentVadiustments during the year 13.91 35.31
16.62 17.22
As per the last balance sheet 0.00
Add: Additions during the year 2.33
Less: Payments/Adjustments during the year 0.09
2.24 0.00
Sub -total (a) 233.64 49.35
(b) OTHERS - Provision for Iaxation:

Provision for taxation
As per the last balance sheet 6.O4 0.34
-102.32
Less: PaymentVadjustments during the year 108.26 96.62
sub - total (b) 56.03 6.04
TOTAL 289.67 55.39
hr^ ANDHRA PRADESH POWER GENERATION CORPORAIION TIMITTD
eroG5G56.E- 556 €5645 s8)6;5'5 Oa)E6',
NON{URRENT ASSETS
Rs. in Crores
13.1 TANGIBIE ASSETS
Cod6d 3l' Additions Deductions Upto 31'
13.1.1 GROSS BTOCK AT COST Mad), 201 1 drieterr drixterrr Madr,2ol2
LAND AND LAND RIGHTS 100.69 80.1 7 0.00 180.86
LEASEHOLD LAND 0.38 0.00 0.00 0.38
BUILDINCS 1634.37 231 .98 0.00 1866.35
HYDRAULIC WORKS 1636.12 281 .57 0.01 1917.68
CIVIL WORKS 407.56 40.30 0.00 447.86
PLANT AND EQUIPMENT 19122.28 2346.O5 3.98 21464.35
OFFICE EQUIPMENT 14.69 o.72 0.00 r 5.41
'l
FURNITURE & FIXTURES 14.75 .18 0.00 15.93
VEHICLES 20.37 "t"t.42 0.11 31.68
CURRENT YEAR 22951.21 2993.39 4.10 25940.50
PREVIOUS YEAR 147 40.45 4219.87 9.11 22951.21
Upto 31" For the Deductiony' Upto 31'
13.12 DEPRECIATI ON BLOCK March, 2011 year Adiustments t\A dr,2012
LEASEHOLD LAND 0.06 0.01 0.oo o.o7

BUILDINGS 545.58 73.92 0.00 619.50
HYDRAULIC WORKS 501 .l 1 72.88 0.00 573.99
CIVIL WORKS 126.56 24.78 0.01 151 .33
PLANT AND EQUIPMENT 8595.33 925.93 3.39 9517.87
OFFICE EQUIPMENT "1o.67 1.32 0.00 11.99
FURNITURE & FIXTURES 10.82 1 .O2 0.00 11.84
VEHICLES 15.03 3.48 0.10 18.41
CURRENT YEAR 9805.16 1103.34 3.50 10905.00

PREVIOUS YEAR. 8831.33 979.54 5.71 9805.16
As at 31' ;dofll'
As at 31"
1113 NET BTOCK ,\,tadr,2011 March 2Ol2 Mardr,2Ol2
LAND AND I.AND RICHTS 100.69 180.86

LEASEHOLD LAND o.32 o.3l
BUILDINCS 1088.79 1246.85
HYDRAULIC WORKS 1 r 35.01 1343.69
CIVIL WORKS 281.00 296.53
PLANT AND EQUIPMENT '10526.95 11946.48
OFFICE EQUIPMENT 4.O2 3.42
FURNITURE & FIXTURES 3.93 4.09
VEHICLES 5.34 13.27
CURRENT YEAR 13146.05 15035.50
PREVIOUS YEAR 9909.12 13146.05
b^ ANDHRA PRADESH POWER GENERATION CORPORATION LIIVIIIED
eao1c5tI56.t 556 as56A5 s836&5 03)86-
13.2 INTANGIBTE ASSETS Rs. in Crores
,l Costas at 31" Additions Deductions Upto 31"
13.2.1 CROSS B KATCOST Mardr, 201 1 drietera drirsterrr Mardr.2Ol2
1 Application Software 0.84 0.02 0.00 0.86
CURRENT YEAR 0.84 0.02 0.00 0.86
PREVIOUS YEAR 0.80 0.04 o.o0 0.84
Upto I l' For the Dedudiony' Upto 3l'
1322 AMORTISATION Mar6, 201I year Adiustments March,20l2
Application Software o.70 0.0s 0.00 o.7s

CURRENT YEAR o.7t 0.05 0.00 0.75
PREVIOUS YEAR 0.65 0.04 o.oo 0.70
As at 3l' tiisrd) end of .l l'
As at 31"
132.3 NET B tocK Madr, 201 1
los6
March 2Ol2 Nlat(}r.,2O12
Application Software o.14 0 11
CURRENT YEAR 0.14 0.11

PREVIOUS YEAR \ 0.14 0.'t4
13.3 The Government of India notified the depreciation rates for electricity industry vide
notification SO 266lE - dated 29.03.1994 segregatangthe assets in to majorcategories and sub-
categories. Accordingly all the assets are categorisd under relevant heads. For the assets
including assets of the solar power generating station, which are not categorised under any
head, the life ofthe asset has been considered for the purpose of categorisation under one of
the heads.
13.4 Depreciation on Fixed Assets used in the Construction during the year for Rs. 1.37 crores
(Previous Year for Rs. 2.40 crores) is capitalised and transferred to the incidental expenditure
during construction underthe head 'Capital Work in Progress'.
13.5 Additions to Plant and Equipment includes increase in liability of Rs. 10.44 crores (Previous
year Rs. 2.67 crores) on account offoreign exchange variation.
13.6 The value ofthe assets, properties, liabilities, obligations, proceedings and personnel relating
to generation stations of erstwhile Andhra Pradesh State Electricity Board acquired from the
Covernment of Andhra Pradesh in pursuance of Andhra Pradesh Electricity Reform Act I 998
and the (Transfer Scheme) Rules 'l 999 framed there under are accounted for in the books ofthe
Company in terms of C.O. Ms. No.9 dated 29-1-1999 and G.O. Ms. No. 11 dated 31-1-2000
issued by the Covernment of Andhra Pradesh. As per aforesaid notification, the value of
movable and shared assets with other Company is subject to change ifany, based on the report
of the committee constituted therefor. The carrying cost of shared assets is Rs. 0.01 Crores
(Previous year Rs. O.0l Crores). Hence, the financial impact of the changes if any, on movable
and shared assets is notmaterial.
bi^
APGENCO
ANDHRA PRADESH POWER GENERATION CORPORATION TII1JIITED
eeoG5E56E- 556 a56a5 s616a5 Oa)86
Rs. in Crores
14.1 CAPITAT WORK-I N.PROG RESS As at 3'l{3-2012 As at 31{3-2011
Capital Work in Progress 3138.36 4455.60

Materials at construction Stores / Sites 140.61 80.92
TOTAT 3278.97 4536.52
CWIP includes increase of Foreign Exchange variation for
the the year Rs. 0.20 crores
14.2 INTANCIB[E ASSETS UNDER DEVETOPMENT

Mining Rights as per cost 7.62 5.06
TOTAT 7.62 5.06
15. NON-CURRENTINVESTMENTS
Trade lnvestments (At Coso in Shares of AP Power

Development Company Limited (Subsidiary)
(Equity shares of Rs. I O each fully paid up acquired at par) 475.11 264.36
Trade lnvestment (At Cost) in shares of AP Cas
Infrastructure Corporation Private Ltd (Associate) 19.60 0.49
(Equity shares of Rs. 1O each fully paid up acquired at par)
Share Application money with Andhra Pradesh Power

Development Company Ltd 16.47 62.08
TOTAT 51 1.18 326.93
16. LONG.TERM TOANS AND ADVANCES

(Unsecured and Considered Cood)
Capital Advances 395.03 504.O2

Security Deposits 49.08 46.60
Advances to Staff 25.67 12.45
Other Loans & Advances 32.03 98.73
TOTAL 501.81 661.80
CURRENT ASSETS
17. CURRENT INVESTMENTS
Other lnvestment in SBI Premier Liquid Fund - lnstitutional - 0.00 r 50.00
Crowth
(a) Aggregate Market Value as on 31st March 2012 is nil
(Previous year Rs.l50.08 Crs)
(b) Valued at lower of cost or net asset value.
TOTAT 0.00 150.00
46
APGE,,TCO esolcSti5dF 556 ae56a5 c6^)6a5 Oa)BE',
v
Rs. in Crores
18. INVENTORIES (As certified by the Management)
As at 3I{3-20'12 As at 31{3-201 1
18.1 Materials:
Coal
ln Stocks 178.33 154.24
(Valued at cost on monthly moving weighted average basis)
ln Transit 69.64 26.56
247 .97 180.80
oit
ln Stocks 62.21 52.27
18.2 Stores and Spares

ln Stocks 390.90 358.1 2
(Valued at cost on weighted average basis)
At Site 34.98 21.72
ln Transit 6.1r 4.13
Pending lnspection 3.38 1.92
435.37 385.89
Suh,Total (18.1 + 18.2) 745,55 618.95
Provision for Write off of stores and spares 55.06 55.81
590.49 553.1s
18.3 Asset Held for Sale (SCRAP) 0.10 0.04

TOTAL (18) 690.59 553.19
18.4 Physical verification of stores is conducted at reasonable intervals. Provision for surplus,
obsolete, unserviceable and non-moving materials / spares is provided / revised, based on
physical verification report ofthe stores to the extent of 5O'/. ofthe book value of such material.
't9. Rs. in Crores

TRADE RECEIVABIES (Unsecured and Considered Cood)
As at 31{3-2012 As at 31{3-201 1
(a) Debts exceeding 6 months
Receivables for inter state projects 2.48
Receivables for O&M Contracts within State 15.44 6.22
Sub-Total 17.92 6.22
(b) Other Receivables
Receivables for Sale of Power within State 4754.O2 2687.O7
Receivables for inter state pro,ects 3.59 4.92
Receivables for O&M and Supervision
-17
Contracts within State 10.72 .93
Sub-.Total 4768.33 2709.92
TOTAT 4746.25 2716.14
47
!.* ANDHRA PRADESH POWER GENERATION CORPORATION TIIIIIIIED
eroL4SGSd.' 555 a356a5 sO16a5 OA)85'"
Rs. in Crores
20 CASH AND CASH EQUIVALENTS As at 3'l{3-2012 As at 3143-201 1
Balances with Banks 58.32 136.06

Cheques, drafts on hand 't.52 1.69
Cash on Hand 0.01 0.01
Balances in Escrow Accounts with Banks 9.94 14.73
Balances with banks to the extent held as margin money
or security against borrowings, guarantees, other
commitments o.12 0.15
Bank Deposits less than 3 months 0.r 6 347.29
TOTAT 70.o7 499.93
21. SHORT - TERM LOANS AND ADVANCES

Advances Recoverable in Cash or in Kind for the value
to be received
O & M Suppliers 41.06 r 3.80
lnterest free Loans & Advances to Staff 3.82 L84
Others 6.47 5.63
TOTAL 51.35 21.27
,, OTHER CURRENT ASSETS

lnterest /lncome Accrued 14.79 20.77
Bank Deposits & Other Bank balances 21.15
Other Deposits r 0.45 6.36
Others Receivables 55.O7 37.N
80.31 8s.28
Allowance for Doubtful Receivables 7.52 6.20
IOTAT 72.79 79.08
23. CONTINGENT LIABILITIES AND COMMITMENTS Current Year Previous Year

fiOTHE EXTENT NOT PROVIDED FOR)
23.1 Contingent Liabilities
23.1.1 Claims against the Company not acknowledged as debts
and contingent liabilities 246 263
from the Chief Electrical lnspector/
23.1.2 Letter received 2125
Andhra Pradesh for payment of electricity duty on
electricity generated since inception ofthe company. But
the duty is not payable for electricity sold to licensees as
perthe AP Electricity Duty Act, 1939 and even if it is
payable the same recoverable from APDISCOMS. Hence
the same was not provided for.
W*
APCENCOI
ANDHRA PRADESH POWER GENERAI!ON CORPORAT!ON TIMITED
eeoG5G56.5. 556 as5655 eerr6;i5 OA)BC'
Rs. in Crores
Current Year Previous Year
23.1.3 Guarantees Issued by Bankers for the Company 55 70

23.1.4 Other money for which the company is contingently
liable: Suits/ Cases filed against the Company pending 18 20
before judicial/ appellate tribunals not provided for
23.2 Commitments
2 3.2.1 Estimated amount of contracts remaining to be executed 4441 491 4
on Capital Account and not provided for
23.2.2 Other Comm itments 108
INCOME:
24.1 REVENUE FROM OPERATIONS FY 201-t--t2 FY 2010-1 1
Revenue from Sale of Power in AP -t1387.75

8840.91
Revenue from lnter State Sale of Power o.74 o.87
Revenue from O&M and Supervision Contracts 51.1 1 75.92
Subtotal 1r439.60 4917.70
Less: Capitalisation of Revenue from test run 1.09
TOTAI- 11438.51 8917.70
Sale of power is accounted for based on Power Purchase Agreements entered with
APDISCOMs, APERC Regulation No. 1 of 2008 and Orders of APERC dated 22nd July 2010
and 13th June 20'l 1 . The same is subject to the review of tariff petition and interlocutory
Application of the Company byAPERC.
24.3 The Company has also filed Aggregate Revenue Requirement (ARR) for the financial years
from 2009-10 to 2013-14 before the Andhra Pradesh Electricity Regulatory Commission
(APERC). Pending APERC decision thereon, Revenue from sale of Power is accounted
prudently and recognition of reven ue to the extent ofuncertainty is deferred.
24.4 The Covernment of Andhra Pradesh has notified a scheme transferring the existing trading
functions from APTRANSCO to the four DISCOMs with effect from 9th June 2005. For the
purpose of smooth transition to this new arrangement, the Government placed an institutional
arrangement called "AP Power Co-ordination Committee (APPCC) and other sub-committees"
for effective co-ordination among DISCOMs. The Company issued power bills to APPCC
instead of DlSCOMSas per the transitional arrangement.
49
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IMITED
TP'CErcO eeeL6G5aE 556 a.56a5 s8)6a5 Oa)85
Rs. in Crores
FY 2011-12 FY 201G1 1
25.1 OTHER INCOME
lnterest on Staff Loans and Advances 1.'19 0.74
lnterest on Other Loans and Advances 24.95
lnterest lncome 12.57 46.27
Profit on sale of stores 0.88 0.93
Profit on sale of Plant and Equipment (Scrap) o.75 o.62
Grant in aid for Education 0.03 0.05
Misc. Receipts 36.60 24.66
76.97 73.27
Less: Other lncome Capitalised 24.96 0.00
TOTAL 52.O1 73.27
1C, '' Surcharge on delayed payments is not recognised as income as per the Accounting Standard-9
Revenue Recognition of the Companies (Accounting Standard) Rules 2006, due to uncertainty
in realisation. The same is recognised on acceptancey'realisation.
EXPENDITURE: Rs. in Crores

26. MATERIATS CONSUMED F\ 2011-12 FY 201Gl 1
Cost of coal consumed 6569.70 4368.27

Cost of oil consumed 219.41 163.38
Consumables, Lubricants etc., 53.69 40.60
Total Ceneration Cost before capitalisation 6A43.20 4572.25
Less: Expenditure Capital ised 5.73 22.79
Total 6A37 .47 4549.46
27. EMPTOYEE BENETIT EXPENSE

Pay 328.89 318.00
Deamess allowance 54.85 20.78
Otherallowances 90.o7 8s.03
StaffWelfare Expenses 69.61 28.98
Contribution to pension/gratuity and leave expense 269.82 920.29
Total Employee Cost before capitalisation / transferred to
other heads 813.24 r 373.08
Less: Expenditure Capitalised /transferred to other heads 42.60 51.r 6
Sub - Total 770.64 1321.92
APGENCO eeoLq5E56.5- 556 ae56a5 s6)6a5 OArE6
Rs. in Crores
FY 20't1-12 FY 201G.l 1
27 .1 The contribution to pension,/gratu ity fund and leave

expense includes the (ollowing:
27.1.1 Defined Contribution Scheme+StatePlans

a) Employees' Provident Funds Scheme 1995
16.56 1 3.31
b) Empoyees' Pension Scheme 1995
2.78 2.57
c) Employees' Deposit Linked lnsurance Scheme, 1976
0.47 0.45
27 .1.2 Defined benefit Schemes
a) Pension and Cratuity for APSEB Employees 215 805
b) Cratuity as per Cratuity Act 1972 for other employees 24 7
c) Earned Leave Encashment / Compensated Absences 'l 'l
92
27.2 The discount rate of 8.00'/, is assumed, which is determined with reference to marketyield as
on the Balance Sheet date on Government bonds. The estimated final salary is considered in
actuarialvaluation, taking intoaccount inflation, seniority, promotion and other relevant factors.
27 .3 Reconciliation of opening and closing balances of the Rs. in Crores

present value of the defined benefit obligation as per the
actuarial valuation Report:
Present Value of the obligation at the beginning of the period
2647 1842
Current Service Cost
245 218
lnterest Cost
205 147
Actuarial (gain)/loss (60) 572
Benefits paid (167) (1321
Present Value of the obligation at the end of the period
2870 2647
27 .4 Reconciliation of the present value of the defined
obligation and the fair value of the plan assets as per the
actuarial valuation report
Present value of the obligation at the end of the period 2870 2647
Fair value of plan assets at the end of the period 1058 1022
Liability recognised in the balance sheet 1812 1626
Cost recognised for the period as per the actuarial valuation report:
t
Current Service Cost 245 218
I nterest cost
205 147
Expeaed Return on Plan Assets (83) (78)
Adiustment / receipts from RPF Commissioner & Others (4t (4)
I Net cost recognised for the period 2'15 805
I
/ ANDHRA PRADESH POWER GENERATION CORPORATION TIMITED
APCENCO eeeLl6G5d.' 556 a.5655 s8)6a5 0A)66
Rs. in Crores
28. FINANCE COSTS
FY 201-t--t2 FY 201 0-1 1
(a) lnterest expense
lnterest on APGENCO Bonds 54.34 117.66
lnterest on Term Loans from Scheduled Banks 239.75 210.O1
lnterest on Term Loans from Fls 905.26 840.48

lnterest on Term Loans from Others 1.99 1 .99
'l 18.41
Interest on Ceneral Provident Fund 8.41
Interest on GIS / FBF 0.45 0.41
Interest on Pension and Gratuity Bonds 752.46 674.30
Other bonowing/finance cost 11.20 0.99
Sub-Total 1983.86 1864.25

(b) Applicable net gain / loss on foreign currerrcy
transactiom and translations 0.02 0.03
1983.88 1864.2A
Less: lnterest Capitalised 334.52 495.05
'1649.36 1369.23
TOTAL
29. OTHER EXPENSES

(a) COST OF INTER STATE POWER
Cost payable to State Covernment
(for MHES & TBHES) 14.06 10.34
Expenditure on Machkund
-14.26
0oint Venture Project) 13.56
Sub - Total 27.62 24.60
(b) COST OI WATER AND WATER CESS
Water Charges - Hydel 23.14 25.31
Water Charges - Thermal 5.32 25.34
Water cess 19.16 17.20
Sub - Total 47.62 67.85
(c) REPAIRS AND MAINTENANCE EXPENSES
Plant and Machinery 157.53 151.32
Buildings 11.50 7.72
Civil Works 27.35 21 .26
Hydraulic Works 7 .70 7.72
Lines and Cable Net works 2.03 1.51
Vehicles 2.33 2.63
Furn iture and office equipment 1.00 o.77
Repairs and Maintenance Expenditure before Capitali 209.44 192.93
Less: Expenditure Capital ised o.12 o.37
Sub - Total 209.32 192.56
W
:/IGENCO i
ANDHRA PRADESH POWER GENERATION CORPORATION LIMIIED
eeaLcSG5dF 556 ar56a5 s6')6a5 0A)86
Rs. in Crores
tY 2011-12 FY 2010-1 1
(d) ADMINISTRAT]ON & GENERAT EXPENSES
Rent 0.04 0.10
Rates and taxes 9.68 10.99
lnsurance on Fixed Assets 9.09 6.96
Vehicle expenses 14.32 12.60
Electricity charges 20.7-l 35.35
Cost of police guard 16.12 14.95
Other adm i nistrative expenses 13.74 13.10
Misc. losses and provisions 1 .70 4.75
Total Expenditure before Capitalisation 85.40 98.80
Less: Expenditure Capitalised 6.s3 2-t .5'l
Sub - Total 74.87 77.29

(e) PRIOR PERIOD ITEMS
Other lncome (Net credit) 6.O7 7 .41
Sub - Total (6.07) (7.41)
TOTAL 357.36 354.89
Other Administrative expenses include the following

auditors' remuneration:
Statutory Audit fee 0.06 0.05
Certification of consolidated accounts o.o2 o.o2
Limited Review 0.01 0.01
Service Tax thereon 0.01 0.01
Out of pocket expenses o.o2 0.01
Total o.12 0.10

Cost Audit fee o.o2 o.o2
Out of pocket expenses 0.01 0.01
Total 0.03 0.03
30. EXCEPTIONAT ITEMS

lncome - Credit Balances not payable 0.11 105.12
Total (0.r 1) (10s.12)
31. EXTRAORDINARY ITEMS

Heavy floods inundated the Srisailam Hydro Projectduring
the year 2009-10. Expenditure incurred on account of the
't
floods in the current year is charged to extra-ord inary items. 8.73 1 .31
Loss on account of fire Accident at RTPP Unit-S 2.49

Total 4.73 13.80
53
V^
AP G ENCO
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IMITED
eeaLcSGSdF 556 ar;Stsas s8)6a5 Oa)85
32. Related Party Disclosures
32.1 Related Parties:
32.1.1 Andhra Pradesh Power Development Company Limited (APPDCL) is a Special Purpose
Vehicle with APDISCOMs to implement Krishnapatnam Thermal Power Project (2X800 MW)
and Karimnagar Cas Power Project (3X700 MW). The Company holds 56.87% of paid up
capital in APPDCL, as on balance sheet date.
32.1 .2 Andhra Pradesh Gas lnfrastructure Company Private Limited (APC lC) is a joint venture Proiect
between the Company and APIIC to develop gas infrastructure in Andhra Pradesh and outside
the State. The Company holds 49'i" ofthe paid up capital in the joint venture.
32.2 Key Management Personnel

Sri Dinesh Kumar Chairman
Sri K. Vijayanand Managing Director
Sri D. Prabhakar Rao Joint Managing Director
Sri G. Adiseshu Director (Hydel)
Sri U. C. Krishna Murthy Director flechnical)
Sri C. Radha Krishna Director (Projects)
Sri C. Vaman Rao Director (HR)
Sri S. Anjaneya Rao Director (Thermal)
Sri T. Prabhakar Rao Director (Coal & Logistics)
Rs. in Crores
32.3 Transactions with the related party during the year
Equity Contribution to APPDCL 1 65.1 s 173.58
Value of the service rendered to APPDCL under the
project execution contract which was included in the
above- 46.33 46.33
Deputation of Employees to APPDCL (in Nos.) 18 21
'l
Equity Contribution to APCIC 9.1 1
32,4 Balances with the related party to the end of the year
lnvestments 495 265
Other Current Assets - Share Application Money with
APPDCL 16.46 62.O8
Receivables 3.86 3.86
Payables 0.03 1 .84
32.5 Externally Aided Projea loan from KFW, Cermany through the Company / Covernment
outstanding to the end of the year is Rs.1909.78 Crores (Previous year Rs.5lO.3O crores).
(Pl refer Note No.4.2.4.1)
u
eeoLq5Gl,dE- 556, a356:i'S sd)Aas OA)EE
33. Additional lnformation:
3 3.1 Balances shown under advances, debtors, creditors and material-in{ransit/under inspection,
in so far as these have not been since realized/discharged or adjusted are sublect to
confirmation/ reconciliation and consequential adjustment if any.
Rs. in Crores
33.2 FuelConsumption Current Year Previous Year
Coal (in million tonnes) 25.53 2'1.32

FD/LD/HSD Oil (in million lts) 53.54 37.76
Coal consumption per unit of generation (Kg/Kwh) o.71 o.72
FD/LD/HSD Oit (Ml/Kwh) 1 .49 1.28
Current Yeat Previous Year

(Lakh MTs) Cro*. (Lakh MTs)
Coal receipts, consumption and stocks: lRs. in Rs. in Crores
Opening Stock -154

7.03 9.88 167
Net receipts (lncluding inter unittransfers) 253.35 6994 21r.58 4367
Opening Stock + net receipts 260.38 7148 221.46 4534
Less: lssues (including inter unittransfers) 252.59 6970 214.43 4380
Closingstock 7 .79 't78 7.O3 '154
The value of loss of coal-in-transit, shrinkage, 52 32
windageetc.,
Rs. in Crores
33.3 CIF value of imports of Current Year Previous Year
Material and spares 1.74 1.03
Capital material 28.46 57.20
33.4 Expenses in Foreign cultency

Foreign Travel 0.03 o.o4
Consultancy and Professional charges o.97 1.26
33.5 The fuel, material (stores, spares etc.,) consumed-indigenous 93% 97%
33.6 Earn ings in Foreign currency
ln MW ln MW
34. Technical lnformation
lnstalled Capacity
Hydel 3829.36 3790.36
Thermal 5092.50 4592.50
Wind (Ramagiri) 2.00 2.OO
Solar (lurala) 1.00 0.00
Total 8924.86 8384.86
eeoLl5G56F 556 a3;56a5 *ef36i5 05)86
Plants in operation Location
(i) Hydel Stations
(lncluding Share of Covernment in Machkund and
ffiffi
Tungabhadra joint scheme)
Machkund (70% of lnstalled capacity of 120 MW)* 84.00 84.00
Tungabhadra (80% of Installed capacity of 72 MW)** 57 .60 57.60
Upper Sileru 240.OO 240.00
Lower Sileru 460.00 460.00
Nagarjuna Sagar 815.60 8'r 5.60
Nagarjuna Sagar (Right Canal) 90.00 90.00

Nagarjuna Sagar (Left canal) 60.00 60.00
Srisailam Right 770.00 770.OO
Srisailam Left 900.00 900.00

Donkarayi (Canal Power House) 25.00 25.00
Nizamsagar 1 0.00 10.00
Pochampadu 36.00 36.00
Peddapally (Mini Hydel) 9.1 6 9.16
cheftipeta (Mini Hydel) 1.00 1.00
Palair Mini Hydel (Khammam) 2.00 2.00
Penna Ahobilam HES, Anantapur 20.00 20.00
Singur HES, Singur 15.00 15.00
Priyadarshini .lurala HES 234.00 195.00
(Note: Dateof Commercial Operation of unit - Vl -
04.08.201 1)
Total (l) 3829.36 3790.36
* Interstate project between the Covernment ofAndhra Pradesh and the Government of Orissa I
and the fixed assets are owned by both the Governments and the project is operated by the i
Company.
** lnterstate proiect between the Government of Andhra Pradesh and Government of

Karnataka and the fixed assets are owned by both the Covernments and the proiect is operated
by the T.B. Board.
L
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laP6Er{Co I
ANDHRA PRADESH POWER GENERATION CORPORAT!ON TIMITED
eeoG5G56.E' ;556 a356r)'5 s616a5 05)85
(ii) ThermalStations Capacity (MW) Caoaciw (MW)
Kothagudem 'A' 240.OO 240.O0

Kothagudem 'B'(uprated to 2 X 120 M\ r') 240.00 240.00
Kothagudem 'C' 240.00 240.0O
Kothagudem gth & loth Unit 500.00 500.00
Kothagudem Stag+.Vl (COD on 23.10.2011) 500.00
Ramagundam 62.50 62.50
Dr. NTTPS, lbrahimpatnam, Vijayawada 1260.00 1260.00
Dr. NTTPS Unit-7, lbrahimpatnam, Vijayawada 500.00 500.00
Rayalaseema TPS, Muddanur 420.00 420.OO
Rayalaseema TPS, Unit lll & lV 420.OO 420.00
Rayalaseema TPS, Unit-V 2lo.oo 210.00
Kakatiya TPS Stage-l 500.00 s00.00
Iotal Gi) 5092.s0 4592.50
(ln million unir)
Generation of Power Current Year Previous Year
a. Hydel 6287.99 7872.26

b. Thermal 35970.87 29448.35
c. Wind 0.00 0.00
d. Solar 0.40 0.00
Total 42259.26 37320.51
Plant load factor ('/. ) 83.80 79.46
(a) Power sold to APDISCOMs (APPCC) (in million units) 39096.85 34638.04
(b) Auxiliary consumption (in million units) 3162.41 2682.57
35. Regrouping, rearrangement and rounding off of Previous year's figures
3 5.1 Previous year's figures have been regrouped./rearranged wherever necessary and have been
rounded offto crores.
For K.S. Ramakrishna & Co., Forand on behalfofthe Board

Charlered Accountants
Firm Regn. No. O02888S
K. Rama Rao D, Prabhakar Rao K. Vilayanand Dinesh Kumar
Partnel .loint Managing Director Managing Director Chairman
M.No.206039
5. Srinivasa Rao G. Adinarayana
Place ; Hyderabad FA & CCA (A/cs) Company Secretary
Date :21"Ju|y,2012
57
ANDHRA PRADESH POWER E CORPORATION t!I'lIITED
APCENCO eroGsG5d.5- 5;55 a3;56a5 F8)6;15 05)86
CASH FLOW STATEMENT FOR THE YEAR EilDED 31" MARCH 2012
(Rupees in Crores)
Particulars Currenl Year Previous Year
Cash flows from operating activitie

Net profit before taxation and exceptional and extra
ordinary ltems 773.67 418.29
Adjustments for:
Depreciation and amortisaiton 1102.O2 977.19
lnterest lncome .31)
(7 (18.78)
lnterest Expense 1649.36 1369.23
Exceptional and Extra Ordinary items (Net) (8.62) 9-t.32
Profit on sale of fixed assets (0.7s) (o.62')
Operating profit before working capital changes 3508.37 2436.63
Adjustments for:
Trade Receivables (2O70.11) (37.54\
lnventories \127.4O) 13.98
.t
Other current and non current assets 6.29 1 .98
Loans and advances 20.92 (4.711
Payables, liabilities and provisions r450.86 993.53
Net flow before extra ordinary activities 2788.93 3713.87
lncome tax paid (108.26) (96.62)
Net Cash from operating activities 26A0.67 3617.25
Cash flows from investing activities
Capital Expenditure (1716.64) (2302.46)
Sale of fixed assets 1 .32 1 .42
lncome received 7.31 18.78
lnveslment in ,loint venture - APPDCL, APGIC (184.25) (173.58) I
't 50.oo 11 50 fi))
lnvestments in mutual funds
Net cash from investing activities (1742.30\ (2605.84)
Cash flows from financing activities
Proceeds from borrowings 1730.63 1648.39
Repayment of borrowings (1384.6s) (-t294.30].
Net outflow of employee related funds (70.s6) (67 .7 4l
lnterest paid (1643.65) (1354.70\

Net cash from financing activities (1368.23) (r068.35)
Net increase in cash and cash equivalents @29.A6\ (s5.94)
Cash and cash equivalents at the beginning of the year 499.93 \\6 A7
Cash and cash equivalents at the end ofthe vear 70.o7 499.93 I
(429.86) (s6.94)
This is the Cash Flow Statement referred to in our report even date
For K.S, Ramakrishna & Co., For and on behalf of the Board
Firm Regn. No. 0o2888S
K. Rama Rao D. Prabhakar Rao K. Viiayanand Dinesh Kumar
Partner .loint Managing Director ManaSing Director Chairman
M.No.206039
Place : Hyderabad FA & CCA G,/cs) Company Secretary
Dare | 2"1" July,2012
I Yffit ANDHRA PRADESH POWER GENERATION CORPORATION I.IMITED
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lr4PCEflCOl erogfpdF 556 ai5655 s6')da5 oa)E:E
Auditors' Report on Consolidated Financial Statements
oKaT'4?- -l*:'1, a v
Chartered Acc,ountants
To
The Board of Directors,
ANDHRA PRADESH POWER CEN ERATION CORPORATION LIMITED,
,l
We have audited the attached consolidated balance sheet of ANDHRA PRADESH PTOWER
GENERATION CORFORATION LIMITED and its subsidiary Andhra Pradesh Power
Development Company Limited (APPDCL) (together referred to as the 'Croup'), as at 31st
March, 2012 and also the consolidated profit and loss account and the consolidated cash flow
statement for the year ended on that date annexed thereto. These financial statements are the
responsibility of the Andhra Pradesh Power Generation Corporation Limited's management
and have been prepared by the management on the basis of separate financial statements and
other financial information regarding components. Our responsibility is to express an opinion
on thesefinancial statements based on ouraudit.
2. We conducted our audit in accordance with the Auditing Sandards generally accepted in
lndia. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for ouropinion'
3 We did not audit the financial statements of subsidiary Andhra Pradesh Power Development
Company Limited (APPDCL), whose audited financial statements reflect Total assets of Rs.
7103.62 c1ores as at 31st March, 2012 and netcash outflow amountingto Rs. 2.99 crores for
theyearended. Thesefinancial statementsand otherfinancial information have been audited
by other auditors whose reports have been furnished to us, and our opinion is based solely on
the report ofother auditors.
Ottice : 5-*22138/2, Adarshnagar, HYDERABAD - 500 063.

Ph: 2324O992123232062, F ax: 23234234
60
APGENCO eeoGSG5d.' 556 a.56as s6)Br]5 OArE6
e{e%-*,1*,1"* g'V".,
4 We report that the consolidated financial statements have been prepared by the Company's
management in accordance with the requirements of Accounting Standards (AS) 21
'Consolidated financial statements', Accounting Standard (AS) 23 'Accounting for
lnvestments in Associates in Consolidated Financial Statements'and Accounting Standards
(AS) 27 'Financial Reporting of interests in Joint Ventures' [notified pursuant to the
Companies (Accounting Standards) Rules, 2006, (as amended)1.
5. Further to ourcomments andsubjectto:
Sale of Power to DISCOMS (APPCC) and the amounts oustanding and receivable thereon is
subject to review as per APERC final orders and the quantitative impact is not determinable,
Based on our audit and on consideration of reports of other auditors on separate financial
statements and on the other financial information of the components, and to the best of our
information and according to the explanations given to us, we are of the opinion that the
attached consolidated financial statements give a true and fair view in conformity with the
accounting principles generally accepted in lndia:
(a) ln the case of the consolidated balance sheet, of the state of affairs of the Croup as at 31 st
March,2O12;
(b) ln the case of the consolidated profit and loss account, of the profit for the year ended on
that date; and
(c) ln the case of the consolidated cash flow statement, of the cash flows for the year ended
on that date.
For K.S. Ramakrishna & Co.,

FRN. 0028885
K. Rama Rao
Partner
M.No.206039
Place : Hyderabad
Date : 21" july. 201 2
Oflice : 5-9-22/38/2, Adarshnagar, HYDERABAD - 500 063.

Ph: 23240992/23232062, F ax: 23234234
61
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I aPGENcol
eeaGsESdF 556 ar56A5 y6'16a5 05)86
COTTSOLIDATED BAI.ANCE SHEET AS AT 31* March 2012
EFg 3'r, 2ol 2 a6.oqo oq. ofoo 5€s {Rupees in Crores)
(6r€.orE 6td)
Particulars Note No. fE end ol
Figurcs as at tiguPs he eld ol
ae at
o565Dx) 6F656oq CutltnlY€ddq! 6o5qIo PEvious Y€arrlJ 6c,646o
I EQUITY AND tlABItlTlES 5IF.r 656D 6du aurr.aD€r,

(1) Shareholder's funds oroeox, o6ocr
Share Capital suepssr 3 2106.8O 2106.80
Reserves and Surplus o5x> frooo or*a 4 1455.43 1041.19
Shareholder's fundlTotal *a*@60., o6xr;rDgiD 3562.23 3147.99
(2) Minority lnterest o%6oq{r!l €drg 440.46 272.14
(3) Non<urrent liabilities 5pd* arr:taoor
Long - term borrowings Qpos zrrrae> 5 15073.01 12232.a6
Employee Related Funds b6forr 6o@oe{odxD 6 3376.25 3744.93
Deferred tax liabilities (Net) aor*rSdE)655-<A9rr5,iFBS(o6rrc ) 7 792.47 582.01
Other Long term liabilities eso 6gaos ar:nauu 8 736.51 398.08
LonB-lerm provisions 6geos 56Ad1 9 1821.03 1779.44
Non-current liabilities - Total O&Ss6.DD..o Boiqo 21799.27 18747.36
(4) Current liabilities tro a>ra<r
Short - term borrowin8s +qeog ar).r"D '10
150.77 0.o0
Trade payables rgs zc6e> 1l 138O.17 52a.21
Other current I iabi I ities a5o.16,rrrreD 't2 3990_32 3501.37
Short-term provisions *qeo6 6qap 13 291.33 56.0r
Current liabilities - Total ir6,rD@o aDdo 5812.59 4085.59
Total Equity and Liabilities 5o{9 6lao 655D 6rodD al).a5ru 3r614.55 26247.O4
ll ASSETS 66feD
(1) Non -Current Assets A&dt6 €qo)
Fixed Assets *@QeD
(i) Tdngible Assels saaodeqtr 14 15174.67 13267.44
(ii) lntangible Assets 5a6o.:Ja€qrD 14 0.1 1 o.14
(iii) Capital Work-in-progress e,1,1),sq56r€ba*ara 1 5 9945.19 7683.74
(iv) lntangible assets under development
oeqe{fo4ss$oito 6eo, 15 7.62 5.06
Fixed Assets - Total il@qo &rgo 25127.59 20956.38
Non-current inveslments e6jd6.sbqa6Jo, t6 19.60 o.49
Long-team loans and advances 6g'o5.iD.eeD 6Jodo adDo.n 17 741.73 1250.56
Other Non Current Assets a& 6.iqds c{qo) 1B 2.05 2.Os
Non- current Assels - Tolal eed56 6Qe) arrgo 25490.37 22209.44
(2) Current Assets
';r.rqeD
Current lnvestments t'6 bqa6r!r, 19 o.00 150.00
lnvenlories 6rra 66)$lD 20 690.59 563.20
Trade receivables e6oba5!i9.ForxD 21 4782.39 2712.28
Cash and cash equivalents rrar ara<ul rnroSt 65r5Q6a 22 74.47 511 .72
Short -term loans and advances (..Fos.rlFlrr srodrr rrdFee)l 23 51.36 21 .27
Other current assets a55 .J@xne), -t20.97
24 79.13
Current Assels - Total rb6D aDSo 5724-78 4037.60
Total Assets o6)€);n rro 31614.55 26247.O4
See accompanying notes to the financial statements

This is the Consolidated Balance Sheet referred to in our report of even date
For KS. Ramakrishna & Co., For and on behalf of the Board
(Irartered Accountants
Firm Regn. No. l[288aS
K. Rama Rao D. Prabhalar Rao K. Vijayanand Dinesh Kumar
Partnr Joint Managing Director Managing Director Chairman
M'No' 2o6o39
s. srinivasa Rao G. Adinarayana
Place: Hyderabad FA & CCA (A/cs) Company Secretary
Date : 21" July, 2012
ot
Jrr" ANDHRA PRADESH POWER GENERATION CORPORATION TIMITED
eeaLq5G56F 555 e56A5 s5)6a5 oa)aE',
CONSOLIDATED PROFI AND LOSS SIATEMENT FOR THE YEAR ENDED 31" MARCH 2OI2
iFg 3'r. 2ol 2 ao.reooog oaSs -O r€s t*. (Rupees in Cmres)
(!ts.o:D rQd,
Particulars IN"t" N. FrSlrr. 6 al he €td ol Frguns !a st Sa eid ol
a666ir.D
ls"aeaq Clll'litY€arler 6.sq& Plrdrc Ylrr<Jit 6o6q6o
I Revenue from operations +&6aS 26 1 1396.51 8875.70
ll Other lncome a&ardro 27 52.01 73.27
lll Total Revenue (l + ll) aogo oaro 11444.52 4948.97
lV Expenses qaro
Cost of materials consumed aodFlloa6 sqo., S610 28 6837 .47 4549.46
Employee Benefits expense aafur661rs *.610 29 715.93 1283.50
F i nance Costs ogs roeaD 30 1U9.36 1369.21
Depreciation and amortization expense
earra'a, soadl, 66F.ra5 *dro 1102.02 977 .-t9
Other expenses (Cost of power, R&M, Adm. & Cenl.
Prior period items) Storto(a.iBt, 5,6q*or& DSee
ao&o6 & &e6o p*ar 6oodD rr.r 6ob+6o,r5.aE)) 31 357.3s 354.91
Total Expenses air{o 10662.13 8534-27
V "q.D and Extraordinary items and
Profit before Exceptional
tax (lII - lV) o686, o F6.a pe.r, & 66\06, $roar.16l, 786.39 414.70
Vl Exceptional items o6E6 32 (0.1 r) 00s.12)
Vll "erl)items and tax (V-VD
Profit before extraordinary
o6.F6e 6Dodrr 661.) qdroSJ dt 06, @go 786.50 519.82
Vlll "qor items ooeoo *aro
Extraordinary 33 8.73 13.80
lX Profit before tax (Vll - Vlll) 66$, all061 re{o 777.77 506.02
X Tax expense: axqo qasn
(l) Current Tax 6fgr so6*6 dEL "t
53.O7 102.32
(2) Deffered Tax - Current Year
aow danAs so56q6 6odr66o) 134.62 94.O7
(3) Deffered Tax - Previous Years
DoD ddr.r66 6ax.r66 6o5*65!rqr) 75.84
Xl Profit / (Loss) for the period from
continuing operations (tX-X) B&6 r.!A.roo / Cd{o) 414.24 309.63
Xll Profit /(Loss) from discontinuing operations
Xlll Tax Expense of discontinuing operations
XIV Profit /(loss) from discontinuing operations n
(after tax) (XIl - Xlll)
XV Profit / (Loss) for the period (Xl + XtV) eOo 414.24 309.63
XVI Earning per equity share 5iFo66o ac a,t16e €96:
(Basic & Diluted) 't9.66
I
14.70
(Face value of Rs. 1O0 per Share orc5)rqpaarsdri too/,
see accompanying notes to the financial statements

This is the Consolidated Profit and Loss Statement referred to in our report of even date
for K.S. Ramafrrishna & Co., For and on behalf of the Board
Charter€d Accountants
tirm Regn. No. fl)2888s
K. Rama Rao D. Prabhakar Rao K. Vijayanand Dinesh Kumar
Partner Joint Managing Director Managing Director Chairman
M.No.206039
Place : Hyderabad FA & CCA (A,/cs) Company Secretary
Dare :21'luly,20t2
63
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E9ENCO eeotlf@dF 556 ae56a5 s6')€a5 OA)8E',
EEErr ,l -l t
NOTES FORMING PART OF THE ACCOUNTS
CONSOLIDATED ACCOUNTINC POTICIES

1 Basis of Accounting
1.1 The Company prepares its accounts on accrual basis under historical cost
convention as per the Generally Accepted Accounting Principles. The Company is
governed by the Electricity Act 2003, therefore, the provisions of the said act read
*ith th" rules thereunder prevail wherever the same have been inconsistent with
the provisions of the Companies Act 1 956.
2 Use of Estimates
2.1 The preparation of financial statements requires management to make certain

estimates and assumptions that effect the amount reported in the financial
statements and notes thereto. Differences between actual results and estimates are
recognised in the period in which they materialise.
3 Fixed Assets
3.1 Fixed Assets are shown at historical cost.
3.2 ln case of commissioned assets, where final settlement of bills with contractors is yet
to be effected, capitalization is done on provisional basis subject to necessary
adjustment in the year of final settlement.
I
64
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APCENCO
eeaG5G56.5 556 a356a5 s6)6a5 05)86
4 CapitalWork in Progress
4.1 Employee cost, Administration & Ceneral expenses incurred for the year are
apportioned atestimated'usage basis' to Capital Work-in-Progress.
4.2 Claims for price variation in case of contracts are accounted for, on acceptance.
5 lmpairment of Assets
5.1 The Company evaluates the impairment of losses on the fixed assets whenever
events or changes in circumstances indicate that their carrying amounts may not
be recoverable. lf such assets are considered to be impaired the impairment loss
is then recognised for the amount by which the carrying amount of the assets
exceeds its recoverable amount, which is the higher of an asset's net selling price
and value in use. Forthe purpose of assessing impairment, assets are grouped at
the smallest level for which, there are separate identifiable cash flows.
6 Assets taken on Lease
6.1 For assets taken on lease prior to 14-2001 and for assets taken under operating
lease, lease rentals payable are charged to Profit and Loss Account.
7 Foreign Currency Transactions
7.1 Foreign currency transactions are initially recorded at the rates of exchange
ruling at the date of transaction. Foreign currency loans/deposits, liabilities are
reported with reference to the rates of exchange ruling at the year-end.
7.2 The difference resulting from such translation as well as due to
payment/discharge of liabilities in foreign currency related to Fixed assets is
adjusted in their carrying cost and that related to current assets is recognised as
revenue/expenditure during the year as per the transition provisions of the
Accounting Standard (AS) 1 1 - 'The effects ofChanges in Foreign Exchange Rates'
of the Companies (Accounting Standards) Rules 2006 as amended from time to
time.
8 lnvestments
8. 1 Long-term lnvestments are carried at cost. Any decline in the value of the said
investments, otherthan a temporary decline, is recognised and charged to Profit
and Loss Account.
8.2 Current lnvestments are carried at lower of cost or fair market value. Mutual
funds are valued at lower ofcost or net asset value.
8.3 lncome on investment other than mutual funds is accounted on accrual basis and
on mutual funds is accounted on maturity/ realisation.
65
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APGEIICO
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IMIIED
enoq_c56d.5- 556 eE5655 eef)645 Oa)66
9 lnventories I
9.1 lnventories, other than scrap, are valued at cost on weighted average basis.
9.2 Scrap is valued at realisable value.
9.3 Provision for diminution if any, in value of materials and spares is made from time to
time.
10 ProvisionsandContingencies
10.1 The Company creates a provision when there is a present obligation as a result of a
past event that probably requires an outflow of resources and where a reliable
estimate can be made of the amount of the obligation. A disclosure for a contingent
liability is made when there is a possible obligation or a present obligation that
probably will not require an outflow of resources or where a reliable estimate of the
amountof the obligation can not be made.
t 1 lncome Recognition
11. l
Sale of power is accounted for based on guidelines laid down under APERC
Regulations and Power Purchase Agreements with APDISCOMs and lnter-state Sale
of Power is based on interstate agreement with the Government of Orissa and
Covernment of AP.
11.2 Revenue from o&M, supervision and other contracts (inclusive of service tax) are
accounted for based on the agreements/arrangements with the parties concerned.
1
'l
.3 The Surcharge on late payment/overdue trade receivables for sale of energy and the
damages/penalties recovered from contractors/suppliers are recognised when no
significant uncertainty exists as to measurability or collectability.
12 Expenditure
12.'l Expenditure accounted foron the accrual basis and provision is made for all known
is
losses and liabilities unless stated otherwise.
12.2 Transit, Windage and Handling Loss of coal along with normal loss due to carpeting
ofcoal is charged offto revenue.
13 Depreciation
13.1 Depreciation is charged on straightJine method as per rates notified by the
Covernment of lndia except where actual cost does not exceed Rs. 50O0 in which
case it is charged 1 00o/o in the same year.
13.2 Depreciation on additions to/deductions from fixed assets is provided on pro-rata
basis from/upto the month in the year in which the asset becomes available for
usey'disposal.
bb
W^
APGENCO
eeoGSG56.5- 556 ae56a5 so)BaS OA)BE
13.3 Where the cost of depreciable assets has undergone a change during the year due to
increasey'decrease in long term liabilities on account of exchange fluctuation, price
adjustment, change in duties or similar factors, the unamortized balance of such asset is
depreciated prospectively over residual life on the basis of the rate of depreciation.
13.4 lnternal electrical wiring, fittings etc., are treated as part of buildings and as such
depreciation applicable to buildings is charged thereon.
14 Research and Development

14.1 Research and Development expenditure is charged to the Profit and Loss account in the
year of incurrence. The expenditure on fixed
assets relating to Research and
Development is treated in the same way as other fixed assets.
t5 Government Grants
1 5.1 Crants related to revenue is shown as a credit in the profit and loss statement under the
heading'Other lncome'and Crants related to specific assets are reduced from the gross
value of theasset on completion of works in arriving at the book value.
16 Employee Cost and Retirement Benefits

'16.1 Liability for pension, gratuity, leave/encashment benefits and medical benefits is
provided based on actuarial valuation made at the end of the year which is computed
using projected unit credit method. Cainy'losses arising out of actuarial valuation are
recognised in the profit and loss account as incomey'expense.
16.2 The Company makes defined contributions to the Regional Provident Fund
Commissioner under the provisions of E P F & M P Act for provident fund and pension for
the employees who are recruited on or after 1-2-1999. The Company has no further
obligation beyond the monthly contributions.
16.3 The contributions made by the employees for Ceneral Provident Fund are credited to
APCENCO Ceneral Provident Fund Trust. The Company has obligation to make good
the shortfall if any between the return from the investment of the Trust and the notified
interest rate.
1 6.4 The contributions made by the employees towards Croup lnsurance Scheme are carried
over under the head 'Employee Related Funds' along with other long term Employee
Related Funds.
17 Expenditure on Survey and lnvestigation

17.1 Expenditure incurred on identification,survey and feasibility studies before ascertaining
feasibility of the project is charged to the profit and loss account in the year of
incurrence.
a7
ANDHRA PRADESH POWER GENERATION CORPORATION LIfllIIIED
W^
APCENCO eao$gdE 556 ae56as *o3655 oa)as6
I
18 Borrowing cost
18.1 Borrowing cost (lnterest etc.) that is directly aftributable to the acquisition,
construction or production of a qualifying capital asset is capitalised as part ofthe
cost ofthat asset. The borrowing cost incurred on funds borrowed generally and used
for the purpose of obtaining a qualifying capital asset, is capitalised applying a
capitalisation rate on weighted average basis. Other borrowing costs are recognised
as an expense in the period in which these are incurred.
19 Prior Period ltems

19.1 Adjustments arising due to errors or omissions in the financial statements of earlier
years are accounted under'Prior Period ltems'.
20 laxeson lncome
20.1 Provision is made for deferred tax for all timing differences arising between taxable
income and accounting income at currently enacted or substantially enacted tax
rates.
20.2 Defened tax assets are recognised only if there is reasonable certainty that they will
be realised and are reviewed for the appropriateness of their respective carrying
values at each Balance Sheet date.
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APCENCO
eeaG5G3d.5- ;556 ar56A5 s81die5 O5)86',
NOTES TO CONSOI-IDATED ACCOUNTS
1 . Basis and Principles of Consolidation

1.1 The consolidated financial statements relating to the Company, its subsidiary and
interest in joint venture company have been prepared in accordance with the Revised
Schedule Vl of the Companies Act 1956 to the extent applicable and the necessary
details have been disclosed in the said statement as per Part I & Il ofthe Schedule.
1.2 Thefinancial statements of the subsidiary company in the consolidation are drawn upto
the same reporting date as of the Company.
1.3 The consolidated financial statements have been preapared in accordance with
Accounting Standard (AS) 21- Consolidated financial statements and Accounting
Standard (AS\ 27 - 'Financial Reporting of interest in Joint Ventures' of Companies
(Accounting Standards) Rules, 2006 and generally accepted accounting principles.
1.4 The financial statements of the Company and its subsidiary are combined on a Iine by
line basis adding together the book values of like items of assets, liabilities, income and
expenses after eliminating intra-group balances and transactions, unrealised profits or
losses and minority interest have been seperately disclosed.
1.5 The consolidated financial statements include the interest in joint venture (ApClC),
which has been accounted for in accordance with the Accounting Standard (AS) l3 -
'Accounting for lnvestments' foraccounting and reporting and carried at cost.
1.6 The consolidated financial statements are prepared using uniform accounting polices
for Iike transactions, and other events in similar circumstances and are prepared to the
extent possible. in the same manner as the Company's separate financial statements
except as otherwise stated in the notes to accounts.
1.7 The difference between the cost of investment and share of net assets is zero on the date
of acquisition of share in the subsidiary, hence no goodwill or capital reserve is
identified in the consolidated financial statements.
1.8 The shareholding held by the company in the subsidiary and joint venture which are
considered in the consolidated financial statements are as follows:
Proportion of Shareholding as on
Name of the Company
31-03-2012 31-03-201 1
Andhra Pradesh Power Development

Company Limited (APPDCL) 56.87.t" 56.24v"
Andhra Pradesh Cas lnfrastructure
Corporation (P) Limited (APCIC) 49.OO.t 49.00Yo
69
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IMIIED
APGENCO eeaLq5GSdE 556 a356a5 e5)655 Oa)85
2.1 Financial Information of Andhra Pradesh Power Development Company Limited (Subsidiary);
Rs. in Crores
Particulars
31-03-2012 3143-201 1
2.1.1 Authorised Capital

(1 60,00,00,000 (previous year 1 60,00,00,000)
'1600 1600
Equity shares of Rs.lo/- each)
lssued, Subscribed and Paid up Capital:
83,54,41,363 (previous year 46,97,1 6,265\
Equity shares of Rs.10/- each. 835 470
Share Application Money 97 129
Total Liabilities 7104 3886
Total Assets 7104 3886
2.1.2 APPDCL is in the process of implementation of Power projects and not commencd its
commercial operation. Profit and loss account is not prepared. Turnover, profit before taxation,
provision fortaxation. profit aftertaxation are nil.
2.2 Financial lnformation of Andhra Pradesh Cas lnfrastructure Corporation (P) Limited (loint
Ventu re);
APCIC has not yet commenced its commercial operations and the annual accounts of the same
for the year 201 1-1 2 are also not yet finalised. Hence the investments in shares of the company
are carrid at cost as perthe Accounting Sandard (AS)-13 "Accountingfor lnvestments' only.
BAIANCE SHETT: Rs. in Crores

As at As at
3l st March 20I2 31st March 201 1
3. SHARECAPITAL
3.1 Authorised Capital :
25,00,OO,OOO equity shares of t 1OO each 2500.00 2500.00
3.2 lssued, Subscribed and Paid up Capital

21 ,06,80,007 equity shares of Rs. 100 each 21 06.80 21 06.80
(7 shares of Rs. 100 each issued for cash
and 2'10680000 equity shares of Rs. 100 each
issued for consideration other than cash
as per the transfer scheme)
Tolal 2106.80 2106.80
-l
70
APGENCO eeoLqSGSd.E- ;556' a.;5655 eA)6A5 OA)BE',
Reconciliation ofthe Shares outstanding at the

beginning and at the end of the reporting period: No. of Shares Rs. in Crores No. of Shares Rs. in Crores
Outstanding Shares at the beginning of the year 21Uffi7 2106.80 21UgJfi7 2106.80
Shares issued during the year
Shares outstanding at the end of the year 2.1uffi7 21 06.80 21fffffn7 21 06.80
As at As at
3.4 Details oflhe Shareholders holding more than 1141-201) 31-03-201 1
No. of Shares %of holding No. of Shares %of holding

5olo (percent) shares in the Company:
Covernment of Andhra Pradesh

including its nominees 21UgJn7 100% 2.1uffi7 1009.
3.5 The Company has only one class of shares i.e., equity shares ranking parri passu with all
respects including entitlement of dividend, voting and repayment ofcapital. Each equity share
carfles one vote.
Rs. in Crores
As at As at
4 RESERVES AND SURPTUS 3143-2012 31-03-201 1
Capital Reserve 7.77 7 .77

General Reserve
.t
Add: Transfer from Bonds Redemption Reserve 120.18 143.05
sub-total 269.49 r49.3r
Bonds Redemption Reserve
Add: Transfer from Profit & Loss Account 91.72 82.61
Less: Transfer to General Reserve 120.18 143.05
sub-total 237.35 265.81
Surplus in Profit & Loss Account
Add: Transfer from Profit & Loss Account 414.24 309.63
Less: Transfer to Bonds Redemption reserve 91 .72 82.6"1
sub-total 940.A2 518.30
TOTAT 1455.43 1041.19
71
W ANDHRA PRADESH POWER GENERATION CORPORAIION LIMIIED
eeoG5E56E- 555 ae56a5 *5)645 0A)86
NON.CURRENT TIABILITIES :
5. TONGTERMBORROWINGS Rs. in Crores
As at As at
5.1 Secured Loans 3143-2012 31{3-2011
5.1.1 Borrowingfrom Banks:
Andhra Bank 461 .66 272.25
Less : Currentportion 30.00 431 .66 30.00 242.25
Secured by (a)Plant & Machinery of Unit -3 of
Srisailam Right Bank Power House -1 10 MW.
(b)Two Boilers and Air Pre-Heaters in Unit I & ll
of stage 1 of Dr. NTTPS, Coal Handling of Stage I
& ll of Dr. NTTPS & Turbine Cenerator and
Exciter of Unit I of Dr. NTTPS Stage I situated at
Ibrahimpatnam, Vijayawada, Krishna Dist.
(c)Exclusive Hypothecation of (i) Track hopper of
the proiect worth Rs. 350 Crores and (ii) Railway
track from .lammikunta Railway station to KTPP
of Rs.20O Crores. (d)Pari passu charge on the
project assets of 1x600 MW Kakatiya Thermal
Power Project Stage ll at Dubbapalli village in
Warangal District.
State Bank of Hyderabad 563.87 458.05

Less : Current portion r 00.88 462.99 92.35 365.70
Secured by (a) ESP of Stage lll, Ash Handling
Plant of Dr. NTTPS Stage ll & lll; Mi[l Motors
DT.NTTPS-Ill for Rs. 121 .00 Crores. (b)Generator
transformer-2 Auxiliary Transformers4, Station
transformers-2 ; 6.6 Switch gear-1 7; 1 6.5 KV Bus
ducts for Unit 7 & B of DT.NTTPS,
lbrahimpatnam; Krishna Dist., worth Rs.34.00
Crores & Coal Handling Plant of DT.NTTPS
Stage.lll; lbrahimpatnam; Krishna Dist., worth
Rs.66.00 Crs and Unit 8 of Nagar.iuna Sagar
Hydro Project; Nagajuna Sagar; Nalgonda Dist.,
wo(h Rs 1 51Crs.(c) Boiler & Air Preheater of
Unit lll of Dr. NTTPS Stagell for Rs. 64.00
Crores. (d)Boiler of unit 5 of Dr. NTTPS & Coal
handling plant of Dr. NTTPS Stage ll. (e) Boiler of
unit 4 and 6.6 KV switchgear of Dr. NTTPS stage
ll and 400 KV Cas insulated switchgear of
SRBHES. (0 Turbine Generator & Auxilary
Equipment of Unit I of RTPPI for Rs. 120.00
Crores and Turbine generator & Auxiliary
Equipment of Unit ll of RTPP stage lfor Rs.
'126.00 Crores. (g) Paripassu charge on stock,
current assets and receivables.
72
ANDHRA PRADESH POWER GENERATION CORPORATION I.IfiIITED
eeeLq5G5dF 556 as56a5 s8)6AS 0A)86
Rs. in Crores
As at As at
3143-2012 3143-201 r
39.85 44.95
Central Bank of lndia 5.99 33.86 5.56 39.39
Less : Current portion
Secured by present and future movable

machinery etc., of Ash handling plant ESPs and
Air pre.heaters of Plant 2x210 MW of RTPP
stage -1
39.38 41.30
Karnataka Bank 5.00 34.38 5.00 36.30
Secured by Cenerator & Auxiliaries ,wagon
tipplerand switch yard of UnitJV of DT.NTTPS.
204.60 233.31
Punjab & Sindh Bank 28.68 175.92 28.68 204.63
Secured by (a) 4O0KV Cas insulated Switch gear
Complete with SF6 gas metal enclosed double
busbar with SF6 Braker, CTs Etc of SLBPH. (b)
Unit - 1 of RTS B Consisting ofturbine, generator,
generator transformer and its auxiliaries situated
at RTS B. (c) Unit9ofKTPS-Vturbogeneratorand
its auxiliaries.
67.50 84.64
Karur Vysya Bank 17.14 50.36 17.14 67.50
Secured by (a) RTPP Stage - I Mill motors, 6.6 l(V

Switch Cear, 22 W 7.7 KV Busduct and
,
Generator Transformer, situated at Kalamala,YSR
Kadapa Dist. (b) Assets of Unit 5 of KTPS - B
station.
20_06 30.06
State Bank of Mysore 10.00 10.06 10.00 20.06
Secured by unencumbered assets available with
Srisailam Right Bank Hydro Electric Scheme Unit
2 of 11O MW, Book Debts and receivables of
Srisailam Right Bank Hydro Electric Scheme Unit
2 of 'l 10 MW & the whole of the movable
properties of Srisailam Right Bank HES Unit 2 of
1r0Mw.
73
J* ANDHRA PRADESH POWER GENERATION CORPORATION LII1JIITED
eeo1E5gdE- 556 ai;Sda5 so;d55 oa)EE
Rs. in Crores
As at As at
3143-2012 31{3-201 r I
345.45 359.75
Bank of Baroda 47.50 297.95 25.00 334.75
Secured by(a) Unit3 & 4of 1 1 5 MWeachturbine,
generator and auxiliaries of Lower Sileru Hydro
Electric Scheme and 25 MW turbine, generator
and auxiliaries of Donkarai Hydel station.
(b)Assets of KTPS - C of Unit 7 & 8.
326.40 364.99
Vijaya Bank
40.00 286.40 40.00 324.99
Less: Current portion
Secured by (a) Turbine generator and transformers
of Unit 4 and 7 of Srisailam Right Bank power
station. (b)Unit 1& 2 each of Upper Sileru Hydro
electric Scheme & Coal Handling Plant and
switchyard of RTPPJ.
80.68 36.94
Tamilnad Mercantile Bank
10.00 70.68 10.00 26.94
Secured by Assets of AHP - RTPP Stage J and

Assets of CHP- RTPP- l.
Canara Bank 123.28 90.82

'l
Less : Current portion 22.22 0'l .06 7.23 83.59
Secured by (a) Steam Ceneratorand its auxiliaries
of Unit 9 of KTPS stage V. (b)Turbine generator of
Hydro Power Generation Station of Nagarjuna
Sagar Right Canal.
lndian Overseas Bank 140.26 1r9.19

Secured by exclusive first charge on the project
assets of the Pulichintala Hydel Power Project
(4X3oMW).
Dhanalakhmi Bank 17.92 20.27

Less : Current portion 2.29 15.63 2.35 17.92 I
Secured by First charge on the plant & machinery
installed, spares used in the lV H E power
generating unit ofSri Ram Sagardam.
Total Loans - Bank 2078.71 1883.21
L
ANDHRA PRADESH POWER GENTRATION (ORPORATION IIMITED
W^
itPGErJCg eeoG5G56F 556 as56a5 s836re5 Oa)86
t Rs. in Crores
As at As at
5.1.2 Borrowingsfrom Financial tnstitutions: 3143-?012 3t{3-20I1
5.1.2.1 Loans from Power Finance Corporation 7966.74 6389.63
Secured by (a) whole of the movable properties of
the borrower for units-lv to Vll of Nagarjunasagar
HEP and Unit - lll of Nagarjunasagar right canal
power house, in addition to the future assets of
RTPP stage ll. (b) Present and Future Assets
(Electromechanical Equipments) of KTPS Stage-
Vl(1x500MW)& Steam generator, Tu rbo
generator & Auxiliaries of Unit-l0 KTPS Stage.V
(250MW)& Cenerator and its auxiliaries, Coal
Handling Plant, wagon tipplers, switchyard Unit-
9 of KTPS Stage-V. (c) The whole movable
prop€rties-Future assets (equipments) of RTPP
Stage lll Unit 5 and Pari-passu charge on Unit I of
Srisailam Right Bank HES (hypothecated to the
present lender for loan No.31305009 and
31302007). (d) Unit V & Unit Vl of SRBHEP,
consisting of Turbine, alternator and Transformer
of Rs. 222.38 Crores in addition to whole future
movable assets of PJHEP.
(e)Turbine Generator set and its Auxiliaries of Unit
1 & 2 ol RTPP Stage -l of Rs. 298 Crores, Future
Assets of Nagarjunasagar Tailpond Dam of Rs. 94
Crores & Pari-Passu Charge on Unit-l of SRBHES
(Hypothecated to PFC Loan No. 31305009)of Rs.
40 Crores. (0 Hypothecation of 4 Nos. Turbo
Generators of KTPS-A station which was
hypothecated to the present lender for loan
No.31304023, 31304012 and 3t3l2OO2. (g)
Hypothecation of Boiler of Unit 6 of Dr. NTTPS -
lll and Air pre heaters of Unit -6 of Dr. NTTPS -
lll.(h) Hypothecation of entire Unit 1 of LSHEP of
1 1 5 MW of Rs. 108.38 Crores. (i) Hypothecation
of entire Unit - ll of LSHEP of 1 15 MW of Rs

105.00 Crores. (j) Hypothecation of Unit-lll and
Unit - lV of Upper Sileru Hydro Electric Project. (k)
Unit I & ll of Nagarjuna Sagar Left Canal HES &
Pari-passu charge on unit 1 of Nagar.juna Sagar
H ES (hypothecated to the present lender for loan
No.31305010). (l) Unit 1 of Lower Sileru Hydro
Electric Proiect value ofassets Rs 1 08.38 Crores.
br^
. rPglrco
esoL-cipd.5' 556 ai56a5 so36a5 oa)85'
Rs. in Crores
As at As at
3143-2012 3't{3-201 1
(m) Hypothecation of Power Transformers and
Switchyard equipment of Upper Sileru Power
Project House Stage - ll. (n) Unit I of Srisailam
Right Bank Power House assets ofvalue Rs 126.24
Crores. (o) Unit 1 of Nagarjuna Sagar Hydro
Electric Project value of assets Rs. 1'l 1.I9Crores.
(p) Whole of the movable properties of future
assets(equipments) of the Lower Jurala HEP and
Boiler, Turbine and its auxiliaries of units 7&8 of
KTPS C station. (q) The whole of the movable
properties of 1x6O0MW coal fired thermal power
proiect, state lV, unit 6 at the existing RTPP site at
proddutur mandal, YSR Kadapa District.
(r) First charge on the whole of the present and
future movable properties of the Company's
Projecl2 x 8OO MW Sri Damodaram Sanjeevaiah
The rma I Power S tat io n, s itu ated at
Krishnapatnam, Sri Potti Sree Ramulu Nellore
District and lndenture of mortgage dated
28.12.2011to mortgage all immovable assets of
2x800MW TPS comprising of projea land
admeasuring acres 'l'l 70.06 cents situated at
village Nelatur, Muthukur mandal, District SPS
Nellore in the State of AP and with assignment of
allrights, interests in project contract.
5.1.2.2 Loans from REC 3309.34 3297.12

Secured by (a) SG & TC Package with auxaliaries
worth Rs. l06O Crores of Dr. NTTPSStagelV, LP
piping, CW piping. BCW pump and
Miscellaneous equipment of Dr. NTTPS - lV of
Rs.500 Crores and Turbo generator of Unit 2 Dr.
NTTPS Stage l, Turbo generator of Unit 3,4 of Dr.
NTTPS Stage ll &Turbo generator of Unit 5, 6 of
Dr. NTTPS Stage lll worth Rs. 497.03 Crores. (b)
Plant & Machinery SC & TC package etc, at
Chelpur village and Boiler ESP instrumentation
and control equipment at RTPP Stage I of Unit I
and ll. (c) Future assets to be created out of the
loan for KTPP Stage.ll i.e., Steam Cenerator,
Turbine and generator with auxiliaries and
Balanceof Plant(Mechanical, Electrical & Civil).
!
t6
W^
I APGENCO'
ANDHRA PRADESH POWER GENERATION CORPORAIION I.IfI/IITED
eeaG5G3d.5- 556 a356a5 s8)6A5 03)86
Rs. in Crores
As at As at
3143-2012 31{3-2011
5.1,2.3 Loans from LIC 1.77 3.54
Less : Current portion -t.77
1.77 0.00 1.77
The loan transferred and vested with the Company
under the Andhra Pradesh Electricity Reform
Oransfer Scheme) Rules 1999 and continued as
per the old terms and conditions; therefore no fresh
charge has been created under the provisions of
the Companies Act I 956.
Sub,total (Financial I nstitutions) 10535.52 9065.29
Total (Secured Loans) 12714.23 10948.50
5.1.3 Terms of Repayment of Secured Term Loans Balance OJbtanding Balance OiMrdirq
As at 31-03-2012 As at 31-03-20'l l
Residual Maturity
.l-3
years 36.74 24.78
3-5 years 443.37 250.92
5-10 years 1598.6 1607.51
1 0 years above
Sub - total 2078.71 1883.21

Term Loans Irom Fls
1-3 years 6.96 1.77
3-5 years 52.39 14.63
5-10 years 2021.64 946.18
1 0 years above 8554.53 8102.71
sub - total 10535.52 9065.29 I
Total 12714.23 10948.50
5.2 UNSECURED TOANS

Rs. in Crores
5.2.1 Un-Secured Non{onvertible APCENCO Bonds *: As at As at
(1) 8.409o Unsecured Non{onvertible APCENCO 3143-2012 31-03-20 r 1
Bonds (Series lll (3971 bonds of Rs.10,00,000
each, redeemable in 2014. The earliest date of
redemption is 21 .03.2O14) 397.10 397.10
(2t 7.80% Unsecured Non{onvertible APGENCO
Bonds(Series lll)(1892 bonds (previous year 5898
bonds) of Rs. I0,OO,0OO each, redeemable 30% in
2012,3O'L in 2013 and 4O% in 2014 earliest date of
redemption is 1 3.O6.2O1 2) 189.20 s89.80
Less : Current Portion /call option 56.76 132.44 400.60 189.20
77
bi*
l APGENCO
ANDHRA PRADESH POWER GENERATION CORPORATION I.I['JIITED
eeeL6GSdF 556 a3;56a5 sB)Air'S oa)a36
Rs. in Crores
As at As at
3143-2012 31{3-201r
* Cuaranteed fu lly, unconditionally and

irrevocably by the Covernment ofAndhra Pradesh
in respect of repayment of principal,
payment of interestand othercharges ifany.
5.2.2 unsecrr,edLdlsftornBnIcandftrariallruilihrllns
5.2.2.I Loans from PFC 91.50 150.42
Less : Current portion 33.44 58.06 5A.92 91.50
Fu lly, unconditionally and irrevocably
guaranteed by the Govt. of Andhra Pradesh in
respect of repayment of principal, interest.
5.2.2.2 Loans from REC 65.44 78.52
guarantd by the Covt. of Andhra Pradesh in
5.2.2.3 Loans from Bank 30.82 35.83
guarantd by the Covt. of Andhra Pradesh in
respect of repayment of principal. interest.
5.2.3 Loans from Govt. of Andhra Pradesh 1909.78 510.30

Less : Current portion 216.77 1693.01 510.30
guaranteed by the Covt. of Andhra Pradesh in
Sub-Total (Unsecured) 2358.74 124436
78
APGENCO eeoLqSGSdS' 555 a356a5 sa)6a5 oa)86'
5.2.4 Terms of Repayment of UnSecured Term Loans Balance OJbtardirg Balance Ortstanding
As at 3l-03-2012 As at 31-03-2011
Residual Maturity
Bonds
I -3 years 529.54
3-5 years 586.30
Sub - total 529.s4 585.30
5-10 years 25.82 30.83
Sub -total 25.42 30.83
Term Loans from Fls
l-3 years 22.88 15.14
3-5 years 35.1 I 76.36
5-10 years 52.35 65.43
Sub,Total r 10.41 156.93
Loans from Govt.
3-5 years 867.14
5-10 years 291 .O7
I 0 years above 825.87 219.23
Sub - Total 1593.01 510.30
Total 235a.78 124436
5.2.5 Loan from the Government of Andhra Pradesh (CoAP) to Rs. in Crores
the erstwhile APSEB (financed by the Asian Development As at As at
3-t43-2012 31-03-201 1
Bank) was received by APSEB, accounted and repaid
before unbundling of erstwhile APSEB (i.e., before
1 .2.1999\. But due to delayed receipt of communication
from the Covernment of lndia, the CoAP issued loan

sanction orders for Rs. 34.32 Crores on 12-1 1-1 999 and for
Rs.57.1 5 Crores on 30.9.2002 which were accounted and
repaid by APSEB before 1-2-1999. Since the loans were
already repaid by the erstr,vhile APSEB, there is no liability
for the Company. Hence the liability for principal and
interestthereon is notaccounted in books ofthe Company.
Total Loans (Secured + Unsecured) 15073.01 12232.A6
6. IMPTOYEE RETATED FUNDS

6.1 Under the Andhra Pradesh Electricity Reform Act 1998
and the Andhra Pradesh Electricity Reform (Transfer
Scheme) Rules 1 999. the responsibility of discharging the
past Iiabilities of employee pension and gratuity of the
erstwhileAPSEB for the period prior to liFebruary, 1999
is with the Company. Consequently, the bonds were
issued jointlyto the trustees ofthe Andhra Pradesh State
79
)*^ ANDHRA PRADESH POWER GENERATION CORPORAIION [IMIIED
eeaG5E5d6. r)56 a3;56a5 s8)655 0A)85,
Rs. in Crores
Electricity Employees Master Pension and GratuityTrust As at As at
(Master Trust). The Company shall have a right to 'call' 31-03-2012 31{3-201 1
the whole orany part ofthe bonds.

The bonds are guaranteed fully, unconditionally and
irrevocably by the Covernment of Andhra Pradesh in
respect of repayment, payment of interest and other
charges if any.
(a) 132043 Nos of non-convertible, non-transferable, 107a.4f 1121.43

non-marketable redeemable bonds of Rs. 1,00,000/-
each; repayable in varying monthly instalments in 3l
years upto 2033. As perthe terms ofthe bonds, amounts
paid to the pensioners of the erstrvhile APSEB is
accounted as repayment/ interest on these bonds for the
year. The outstanding balance after excluding current
portion of Rs.43 crores (previous year Rs. 3l crores) is
shown.
(b) 306652 Nos of non<onvertible, non- transferable, 2294.52 2394.52

non-marketable redeemable bonds of Rs. I,00,000/-
each; repayable in varying monthly instalments in 27
years upto 2029. fhe percentage share of the master
trust and company trusts is subiea to change based on
the report of the actuary. Presently, 74olo pension
(including commutation) and gratuity paid during the
year to the employees as on lst February 1999 of the
erstwhile APSEB has been accounted as repayment/
interest on these bonds for the year as per lhe terms of
the bond. The outstanding balance after exluding
current portion of Rs. 100 crores (previous year Rs. 40
crores) is shown.
6.2 Provident fund Bonds

Cuaranteed fully, unconditionally and irrevocably by 0.00 230.12
the Covernment of Andhra Pradesh in respect of
repayment, payment of interest and other charges ifany'
The bonds carry floating rate of interest on par with the
rate of interest on Ceneral Provident Fund. The present
rate of interest is 8.6'6 per annum. The date of
redemption of bonds is 29th May 20 1 2 and current
portion is of Rs. 230.'l 2 crores (previous year Rs. nil)
80
APCENCO eeoLq5G56.5' 556 a356a5 *836r)'5 0A)86
Rs. in Crores
As at 31{3-2012 As at 31-03-2011
6.3 GIS-Savings Fund 3.08 2.71
5.4 Glllnsurance Fund o.22 0.15

TOTAT 3376.25 3748,93
7 DEFERRED TAX LIAB!IITIES (NED
As per Accounting Standard (AS -22) on accounting for

Taxes on income of the Companies (Accounting I
Standards) Rules 2006, the deferred tax liability as on 31st

March comprises of the following:
Deferred Tax Liability related to fixed assets 1523.89 1457.49
Deferred Tax Asset related to Unabsorbed Depreciation (52.92\ (249.s2)
Deferred Tax Asset relatingto Payments u/s 438 of lTAct (678.s0) (62s.961
Net Deferred Tax tiabilig (Asset) 792.47 582.01
B OTHER tONG TERM I-IABTLITIES

Others:
Security Deposits/Retention amounts etc 736.51 398.08
TOTAT 736.51 398.08
t 2006". However based on the information available with
and interest there on for delay in payments is n il.
I
9 TONG TERM PROV]SIONS
PROVISION FOR EMPTOYEE BENEFITS
(Refer Note Nos. 13 and 29)
Provision for Pension and Cratuity

Less: Payments/adjustments during the year 1 13.85 48.26
1642.70 1615.01
I

Less: Payments/adjustments during the year 19.35 (5.1 2)
144.63 163.98
81
W
)!PGEry99)
eraL15G56.t 556 a.56rf5 s5)d;i5 05)85
Rs. in Crores
As at 31-03-2012 As at 3'1-03-201 I
Provision for medical Benefits
As per the last balance sheet o.49 0.45
Less: Payments/adjustments during the year 0.00 2.93
33.70 0.49
TOTAI. 1821.03 1779.48
10. SHORT-TERMBORROWINGS
(a) LOANS REPAYABLE ON DEMAND
SECURED LOANS REPAYABLE ON DEMAND
From Banks 150.77
TOTAL 150.77 0
Cash Credit limits from various Banks:- First charge on
inventory, Receivables and current assets on Pari-passu
basis, in addition to Covernment Cuarantee in few cases
and machinery located at unit I & ll of Dr. NTTPS.
11. TRADE PAYABTES
ForCoaland Oil 1242.57 4"t0.69

For Purchaseof Power 5.02 8.36
ForO & M Supplies/Works 132.58 1 09.1 6
TOTAT 1380.17 528.21
12. OTHER CURRENT TIABII-ITIES

(a) Current maturities of Secured long-term debt 994.53 898.31
(b) Current maturities of Unsecured Long term debt 347 .40 499.94
(c) Current maturities of PF and Pension Bonds 373.12 71.OO
(d) lnterest accrued but not due on borrowings 217.O5 168.95
(e) lnterest accrued and due on borrowings 42.48 24.17
(0 lnterest received in advance 0.09
(g) Deposits and Retentions From SupplierVContractors+ 800.06 766.32
(h) Other payables
For Staff 83.83 6s.43
For Expenses 51.29 74.51
Capital liabilities and others 104o.47 928.74
TOTAL 3990.32 3501.37
82
Vr^
irPGEryqoi
ANDHRA PRADESH POWER GENERATION CORPORATION [IMITED
eeoLqSGSdE 556 8;5655 s816ir5 OA)85
Rs. in Crores
As at 3l -03-20'1 2 As at 31{3-201 1

and interestthere on fordelay in payments is nil.
+ Deposits and Retentions from Suppliers / Contractors
include penalties etc., recovered from ContractorV
Suppliers where there is uncertainity in ultimate
collection/recovery.
.I3. SHORT.TERMPROVISIONS
(a) PROVISION FOR EMPTOYEE BENEFITS
(Ref Note No. 9 and 29)
As per the last balance sheet 32.66 32.O4
Less: Payments/adjustments during the year (8s.41) 31 .42
215.21 32.66
Provision for Leave Benefits
Add: Additions during the year r3.3r 28.06
Less: Payments/adjustments during the year 12.77 35.22
17 .85 17.31
As per the last balance sheet 0.00
Less: Payments/Adjustments during the year 0.09
2.24 0.00
Sub -total (a) 235.30 49.97
I
(b) OfHERS - Provision for Taxation:
Provision for taxation
Less: PaymentVadjustments during the year 108.26 96.62
Sub - total (b) 56.03 6.04
TOTAT 291.33 56.01
83
W
APGENCO
ANDHRA PRADESH POWER GENERAIION CORPORATION TIMITED
eeaLlSG5dE. 556 a35655 s63655 0A)86
NON{URRENT ASSETS
Rs. in Crores
14.1 IANGIBLE ASSETS (hAtas at 31' Additions Deductions Upto 31'
14.1.1 GROSS BTOCX AT COST Mardr, 201 I drixters driutels l\Aatd]., 2O12
LAND AND LAND RICHTS 198.03 91.22 0.00 289.25

LEASEHOLD LAND 0.38 0.00 0.00 0.38
BUILDINCS 1637.14 237.O5 0.00 1874.-19
HYDRAULIC WORKS 1636.12 281 .57 0.01 1917 .68
CIVIL WORKS 428.87 41 .24 0.00 470.11
OFFICE EQUIPMENT 15.06 1.12 0.oo 16.18
FURNITURE & FIXTURES 15.04 0.96 0.00 16.00
VEHICLES 20.37 13.66 0.1.1 33.92
CURRENT YEAR 23073.29 3013.81 4.-t0 26083.00
PREVIOUS YEAR 18817.42 4264.58 9.11 23073.29
Upto 31' For the DeductionV U pto 3'1"
14.1.2 DEPRECIATION BTOCK Mard! 201 1 year [,tarch, 2O12
LEASEHOLD LAND 0.06 0.01 0.00 o.o7

BUILDINCS 545.62 74.15 0.00 619.77
HYDRAULIC WORKS 50I .1 1 72.88 0.00 573.99
CIVIL WORKS 127.15 26.20 0.0r 153.34
OFFICE EQUIPMENT "to.71 1 .37 0.00 12.08
FURNITURE & FIXTURES I0.85 1.71 0.oo 12.56
VEHICLES 15.03 3.69 0.10 18.62
CURRENT YEAR 9805.85 1105.98 3.50 10908.33

PREVIOUS YEAR 8831.33 980.23 5.72 9805.85
Asat3t" As at 3'l'
end of 3l'
14.'t.3 NET BLOCK i,tadr,2011 M:rch 2Ol2 tt{adt, 20I2
LAND AND LAND RICHTS 198.03 289.25

LEASEHOLD LAND o.32 0.31
BUILDINCS 1091 .52 1254.42
HYDRAULIC WORKS 1135.01 1343.69
CIVIL WORKS 301 .72 316.77
PLANT AND EQUIPMENT 10526.96 11947.39
OFFICE EQUIPMENT 4.35 4.10
FURNITURE & FIXTURES 4.'t9 ).44
VEHICLES 5.34 15.30
CURRENT YEAR 13267.44 15174.67
Vr^
APGENCO eeoG5G56E 556 ar56a5 s836&5 Oa)85
-
14.2 INTANGIBLE ASSETS Rs. in Crores
Cost as d 3l' Addition5 Deductions Upto 31'
14.2.1 GROSS Bt_O CKATCOST Man$, 2011 drirter,er drlrutE\s Mardt, 2012
Application Software 0.84 0.02 0.86

CURRENT YEAR 0.84 0.02 0.00 0.86
PREVIOUS YEAR 0.80 0.04 0.00 0.84
Upto 31" For the Deductions/ Upto 31"
r4.2.2 AMORTTSATTON 2011 year Adiustments March,2012
^,tardr,
Application Software 0.70 0.05 0.75
CURRENT YEAR o.70 0.05 0.00 0.75
PREVIOUS YEAR 0.66 0.04 0.00 o.70
As at 31"
lo6E {'ri,€lsaD
As at 3t'
14.2.3 NET BTOCK t\.tadr,20l1 Mar.h 2O12 Madr, 2012
Application Software 0.'l 4 0.11
CURRENT YEAR 0.14 0.11

14.3 The Government of lndia notified the depreciation rates for electricity industry vide
notification SO 266lE - dated 29.03.1994 segregating the assets in to maior categories and sub-
categories. Accordingly all the assets are categorisd under relevant heads. For the assets
including assets of the Solar Power Cenerating Station, which are not catagorised under any
head, the life of the asset has been considered for the purpose of catagorisation under one of
the heads.
"14.4 Depreciation on Fixed Assets used in the Construction during the year for Rs. 4.32 Crores and
Previous Year for Rs. 3.08 Crores is capitalised and transferred to the incidental expenditure
during construction underthe head 'CapitalWork in Progress'.
14.5 Additions to Plant and Equipment includes increase in liability of Rs. 10.44 crores (Previous
year Rs. 2.67 crores) on account of foreign exchange variation.
14.6 The value of the assets, properties, liabilities, obligations, proceedings and perconnel relating
to generation stations of erctwhile Andhra Pradesh State Electricity Board acquired from the
Covernment of Andhra Pradesh in pursuance of Andhra Pradesh Electricity Reform Act 1 998
and the Oransfer Scheme) Rules 1999 framed there under are accounted for in the books ofthe
Company in terms of C.O. Ms. No.9 dated 29-l-.1999 and C.O. Ms. No. 1 1 dated 3l -l -2000
issued by the Government of Andhra Pradesh. As per the aforesaid notification, the value of
movable and shared assets with other Company is subject to change ifany, based on the report
of the commiftee constituted therefor. The carrying cost of shared assets is Rs. 0.01 Crores
(Previous year Rs. O.0l Crores). Hence, the financial impact of the changes if any, on movable
and shared assets is not material.
APGENCO eraGsG5d.E- 556 a5655 F8)6a5 Oa)E6',
Rs. in Crores
15.1 CAPITAT WORK.I N.PROGRESS As at 31{3-2012 As at 31-03-201 1
Capital Work in Progress 9804.58 7602.82

Materials at construction Stores / Sites 140.61 80.92
TOTAT 9945.r9 7643.74
CWIP includes increase of Foreign Exchange variation for
the FY 201 I -'l 2 of Rs. 66.46 crores (previous year
Rs. I 6.05 Crores)
15.2 INTANGIBTE ASSETS UNDER DEVETOPMENT

7.62 5.06
Mining Rights as per cost 7.62 5.06
TOTAT
15. NON-CURRENTINVESTMENTS
Trade lnvestments (at Cost) in Shares of AP Cas

lnfrastructure Corporation Private Ltd (Associate) 19.60 o.49
(Equity shares of Rs. I O each fully paid up acquired at par)
TOTAL 19.60 o.49
17. LONG-TERM TOANS AND ADVANCES

(Unsecured and Considered Cood)
Capital Advances 627.55 1085.36
Security Deposits 49.58 47.10
Advances to Staff 25.67 12.45
Other Loans & Advances 38.3 3 I05.65
TOTAL 741.13 1250.56
18. OTHER NON.CURRENT ASSETS

PRELIMINARY EXPENSES 2.O5 2.05
TOTAL 2.05 2.05
CURRENT ASSETS
19. CURRENT INVESTMENTS
Other lnvestment in SBI Premier Liquid Fund 0.00 1 50.00
lnstitutional - G rowth
(Valued at lower ofcost or net asset value)
(a) Aggregate Market Value as on 31st March 20'l 2 is
nil (Previous year Rs.1 50.08 Crs)
TOTAT 0.00 150.00
W*
APGENCO:,
eaoL-q5@6.5' 556, ae56r}5 saf6r]'5 oa)EE
Rs. in Crores
20. INVENTORIES (As certified by the Management)
As at 3t{3-2012 As at 31{3-201 1
20.1 Materials:
Coal
ln Stocks 178.33 154.24
ln Transit 69.64 26.56
247 .97 180.80
oit
ln Stocks 62.21 52.27
(Valued at co* on mon*rly moving weighted average basis)
2O.2 Stores and Spares

ln Stocks 390.90 358.13
(Valued at cost on weighted average basis)
At Site 34.98 21.72
ln Transit 6.1I 4.13
Pending lnspection 3.38 1.92
435.37 385.90
Sublotal 745.55 618.97

Provision for Write off of stores and spares 55.06 55.81
690.49 563.16
20.3 Asset Held for Sale (SCRAP) 0.10 0.04
TOTAT 690.59 s63.20
2O,4 Physical verification of storesis conducted at reasonable intervals. Provision for surplus, obsolete,
unserviceable and non-moving materials / spares is provided / revised, based on physical
verification report ofthe storestothe extentof50'/. ofthe bookvalue ofsuch material.
21. TRADE RECEIVABLES (Unsecured and Considered Good)

(a) Debts exceeding 6 months
Receivables for lnter State Sale of Power 2.48
Receivables for O&M Contracts within State 15.44 6.22
(b) Other Receivables

Receivables for Sale of Power within State 4754.02 2647 .O7
Receivables for inter state Sale of power, O&M

from OHPC 3.59 4.92
Receivables for O&M and Supervision
6.86 14.O7
Contracts within State
4764.47 2706.06
SubTotal
TOIAL 4782.39 2712.28
87
APGENCO eeoG5G56F 556 a3;5da5 s6')6a5 OA)EE
Rs. in Crores
22 CASH AND CASH EQUIVATENTS As at 3143-2012 As at 3l -03-20r 1
Balances with Banks 67.12 147.85

Cheques, drafts on hand 1.52 r.69
Cash on Hand 0.01 0.01
Balances in Escrow Accounts with Banks 9.94 14.73

Balances with banks to the extent held as margin money
or security against borrowings, guarantees, other
commitments o.12 0.15
Bank Deposits less than 3 months 0.1 6 347.29
TOTAT 78.87 511.72
23. SHORT - TERM IOANS AND ADVANCES

Advances Recoverable in Cash or in Kind for the value
to be received
O & M Suppliers 41.06 13.80
lnterest free Loans & Advances to Staff 3.83 1.84
Others 6.47 s.63
TOTAT 51.36 21.27
24. OTHER CURRENT ASSETS

lnterest /lncome Accrued 14.82 20.79
Bank Deposits & Other Bank balances 0 21.15
Other Deposits r0.46 6.37
"t03.21 37.O2
Other Receivables
128.49 85.33
Al lowance for Doubtful Receivables 7.52 6.20
TOTAT 120.97 79.13
25. CONTINCENT LIABITITIES AND COMMITMENTS Current Year Previous Year

OO THE EXTENT NOT PROVIDED TOR)
25.1 Contingent Liabilities
25.1 .1 Claims againstthe Company not acknowledged as debts
and contingent liabilities 249 263
25.1 .2 Letter received from the Chief Elearical lnspector/ 2125 2125
Andhra Pradesh for payment of electricity duty on
electricity generated since inception ofthe company. But
the duty is not payable for electricity sold to licensees as
per the AP Electricity Duty Act 1939 and even if it is
payable the same recoverable from APDISCOMS. Hence
the same was not provided for.
ANDHRA PRADESH POWER GENTRATION CORPORATION TIMIIED
APGENCO eeaGSGSdE- 555 as56a5 eet)645 OA)85
Rs. in Crores
25.1.3 Cuarantees lssued by Bankers fortheCompany 87 102

25.1.4 Other money for which the company is contingently
liable: Suits/ Cases filed against the Company pending 18 20
before judicial/appellate tribunals not provided for
25.2 Commitments
25.2.1 Estimated amount of contracts remaining to be executed 6674 9562
on Capital Account and not provided for
25.2.2 Other Commitments 108
26.1 REVENUE FROM OPERATIONS FY 201 1-12 FY 201G.l 1
Revenue from Sale of Power in AP 11387.75 8840.9r

Revenue from lnterstate Sale of Power o.74 o.87
Revenue from O&M and Supervision Contracts 9.11 33.92
Sub-total 11397.60 8875.70
Less: Capitalisation of Revenue from test run 1.09
TOTAT 11396.51 8875.70
26.2 Sale of power is accounted for based on Power Purchase Agreements entered with
APDISCOMs, APERC Regulation No. I of 2008and Orders of APERC dated 22nd)uly 2O1O
and 13th .lune 201 I . The same is subject to the review of tariff petition and interlocutory
Application of the Company by APERC.
26.3 The Company has also filed Aggregate Revenue Requirement (ARR) for the financial years
from 2OO9-10 to 2013-14 before the Andhra Pradesh Electricity Regulatory Commission
(APERC). Pending APERC's decision thereon, Revenue from sale of Power is accounted
prudently and recognition of revenue to the extent of uncertainty is deferred.
26.4 The Government of Andhra Pradesh has notified a scheme transferring the existing trading
functions from APTRANSCO to the four DISCOMs with effect from 9th June, 2005. For the
purpose of smooth transition to this new arrangement, the Covernment placed an institutional
arrangement called "AP Power Coordination Committee (APPCC) and other sub-committees"
for effective coordination among DISCOMs. The Company issued power bills to APPCC
instead of DISCOMs as per the transitional arrangement.
ANDHRA PRADESH POWER GENERATION CORPORATION I.Ifl,IITED
Wm eeoGsedE 556 as56rf5 s81655 Oa)E6',
Rs. in Crores
FY 2011-12 FY 201G1 1
27.1 OTHER INCOME
lnterest on Staff Loans and Advances 1.r9 0.74
lnterest on Other Loans and Advances 24.95
lnterest lncome 12.78 46.27
Profit on sale of stores 0.89 0.93
Profit on sale of Plant and Equipment (Scrap) o.74 o.62
Crant in aid for Education 0.03 0.0s
Misc. Receipts 36.40 24.66
76.98 73.27
Less: Other lncome Capitalised 24.97 0.oo
TOTAL 52.O1 73.27
27.2 Surcharge on delayed payments is not recognised as income as per the Accouonting
Standard-9 Revenue Recognition of the Companies (Accounting Standard) Rules 2006, due to
uncertainty in realisation. The same is recognised on acceptance/realisation.
EXPENDITURE Rs. in Crores

28 MATERIATS CONSUMED FY 20"t1-12 FY 201G.1 1
Cost of coal consumed 6569.70 4368.27

Cost of oil consumed 219.8"1 163.38
Consumables and Lubricants etc., 53.69 40.60
Total Generation Cost before capitalisation 6U3.20 4572.25
Total 6837.47 4549.45
29. EMPLOYEE EENEFIT EXPENSE

Pay 330.76 319.91
Deamess allowance 55.02 20.85
Otherallowances 90.39 85.37
StaffWelfare Expenses 69.63 29.00
Contribution to pension/gratuity and leave expense 270.36 920.78
Total Employee Cost before capitalisation / transferred to
other heads 816.16 1375.91
Less: Expenditure Capitalised /transferred to other heads 100.23 92.41
Sub - Total 715.93 1283.50
90
W^
1!9ENco
ANDHRA PRADESH POWER GENERATION CORPORATION I.IIVIITED
esoL-q5@6.E. 556 a35645 e6)645 0A)86
Rs. in Crores
FY 2011-"t2 FY 201GI
- 1
29.1 The contribution to pension/gratuity fund and leave

expense includes the following: (Plrefer Note Nos 9 and 13)
29.1.1 Defined Contribution Schemes-StatePlans

a) Employees' Provident Fund Scheme 1995 16.56 1 3.31
b) Empoyees' Pension Scheme I995 2.78 2.57
c) Employees' Deposit Linked lnsurance Scheme, 1976 o.47 o.45
29.1.2 Defined benefit Schemes

: a) Pension and Gratuity for APSEB Employees 215 805
i b) Gratuity as per Gratuity Act 1972 for other employees 24 7
, c) Earned Leave Encashment / Compensated Absences 11 92
29.2 The discount rate of 8.00o/o is assumed, which is determined by reference to market yield as on the
Balance Sheet date on Covernment bonds. The estimated final salary is considered in actuarial
valuation, taking intoaccountof inflation, sen iority, promotion and other relevant factors.
29.3 Reconciliation of opening and closing balances of the Rs. in Crores

present value of the defined benefit obligation as per the Current Year Previous Year
actuarial valuation Report:
PresentValueof *reobligation atthe beginningof the period 2647 1842
Current Service Cost 245 218
I nte rest Cost 205 147
Benefits paid $6n (132)
Present Value ofthe obligation atthe end ofthe period 2870 2647
29.4 Reconciliation of the present value of the defined

obligation and the fair value ofthe plan assets as per the
actuarial valuation report
Presentvalue ofthe obligation atthe end ofthe period 2870 2647
Fairvalue of plan assets at the end ofthe period 1058 1022
Liability recognised in the balance sheet 1812 1626
Cosf recognised forthe period as pertheactuarialvaluation report
Current Service Cost 245 2.18
I nte rest cost 205 147
Expected Return on Plan Assets (83) (78)
Adjustment/ receipts from RPF Commissioner & Others (4\ (4)
Net cost recogn ised forthe period 215 805
I
9'1
ANDHRA PRADESH POWER GENERATION CORPORATION LIMITED
APGEIICO eeoG5G5d.5 556 a356a5 *6)Br]5 Oa)BE
29.5 Adjustment of Previous year's figures
While preparing the consolidated financial statements in the previous year, the expenditure of
Rs.7.27 uores incurred by the Company at SDSTPS was not eliminated from intra-group
transactions and the same was adjusted/ elim inated during the year by duly adjusting previous
year's figures.
Rs. in Crores
30. FINANCE COSTS
FY 2011-12 FY 2010-1 1
(a) lnteret expense

54.34 117.66
lnterest on APCENCO Bonds
239.75 210.01
lnterest on Term Loans from Scheduled Banks
1208.93 1019.10
Interest on Term Loans from Fls
41.O4 23.96
lnterest on Term Loans from Others
18.41 18.41
lnterest on Ceneral Provident Fund
0.45 o.41
lnterest on GIS / FBF
752.46 674.30
lnterest on Pension and cratuity Bonds
16.56 1 1.80
Other borrowing/finance cost
2331.94 2075.65
Subtotal
(!) Applicable net gain / loss on foreign currency
0.02 0.03
transactions and translations
2331 .96 2075.68
682.60 706.44
Less: lnterest Capitalised
1649.36 1369.21
TOTAT
31. OTHER EXPENSES

(a) COST OF INTER STATE POWER
Cost payable to State Covernment
1 4.06 10.34
(for MHES & TBHES)
Expenditure on Machkund
13.56 14.26
Ooint Venture Proiect)
27,62 24.50
Sub - Total
(b) COST OF WATER, AND WATER CESS
Water Charges - Hydel 23.14 25.31
Water Charges - Tfrermal 5.32 2s.34
Water cess 19.16 17 .20
Sub - Totat 47.62 67.45

ANDHRA PRADESH POWER GENERAIION CORPORATION [IIllIITED
APGENCO eroLq5G56.E. 556 a35645 *836ir5 0A)86
Rs. in Crores
Fv 2011-12 FY 201Gl 1
(c) REPAIRS AND MAINTENANCE EXPENSES
Plant and Machinery 157 .52 151 .32
Buildings 1 1.50 7.72
Civil Works 27.35 21 .27
Hydraulic Works 7.70 7.72
'I
Lines and Cable Net works 2.O3 .51
Vehicles 2.33 2.63
Furn iture and office equipment 1.00 o.77
Repairs and Maintenance Expenditure before Capitalisation 209.43 192.94
Less: Expenditure Capital ised o.12 o.37
Sub - Total 209.31 192.57
(d) ADMINISTRATION & CENERAT EXPENSES

Rent o.o7 0.13
Rates and taxes 9.68 11.00
lnsurance on fixed Assets 9.09 6.96
Vehicle expenses 14.42 12.69
Electricity charges 24.06 37.59
Cost of police guard 16.27 15.02
Other admin istrative expenses r4.06 13.21
Contributions and Donations 0.00 o.25
Mrsc. losses and provisions 1.70 4.75
Total Expenditure before Capital isation 89.35 10r .60
Sub - Total 78.47 77.30
(e) PRIOR PERIOD ]TEMS

Other lncome (Net credit) 6.07 7.41
Sub - Total <6.On (7.411
TOTAT 357,35 354.91
Other Administrative expenses include the following
auditors' remuneration:
Statutory Audit fee 0.08 0.05
Certification of consol idated accounts o.o2 nn?
Limited Review 0.01 0.01
Out of pocket expenses 0.02 0.01
Total 0.14 0.10
Cost Audit fee o.o2 0.02
Out of pocket expenses 0.01 0.0 r
Total 0.03 0.03
93
APGENCO eeeLcSG56E 556 a;56r)'5 s8)645 OA)85
Rs. in Crores
32. EXCEPTIONAL ITEMS FY 2011-12 FY 20't G.l 1
lncome - Credit Balances not payable (o.r r) (1 05.1 2)

Iotal (0.11) (r05.12)
33. EXTRAORDINARY ITEMS

Heavy floods inundated the Srisailam Hydro Pro.iea
during the year 200$10. Expenditure incurred on
account of the floods in the current year is charged to
extra-ordinary items. 8.73 11.31
Loss on account of fire Accident at RTPP Unit-5 2.49
Total 4.73 13.80
34. Additional lnformation:

34.1 Balances shown under advances, debtors, creditors and material-in-transit/under inspection, in
so far as these have not been since realized/discharged or adjusted are subject to confirmation/
reconciliation and consequential ad.justment if any.
Rs. in Crores
34.2 Fuel Comumption Gl
FY 2011-12 FY 20'r r
Coal (in million tonnes)
25.53 21.32
FD/LD/HSD Oil (in million lts)
53.54 37.76
Coal consumption per unit of generation (Kg/Kwh)
o.71 o.72
FD/LD/HSD oil (Ml/Kwh)
1 .49 1.28

Coal receipts, consumption and stocks (Lakh MTs) Rs. in Crores (Lakh MTs) Rs- in Crores
Opening Stock -154

7.O3 9.88 167
Net receipts (lnclud ing inter unit transfers)
253.35 6994 2r r.58 4367
Opening Stock + net receipts
260.38 7148 221.46 4534
Less: lssues (including inter unittransfers)
252.59 6970 214.43 4380
Closing stock
7.79 178 7.O3 154
The value of loss of coal-in{ransit, shrinkage,
52 32
windage etc.,
94
b{^
: APCENCO
eeoG5G5dF 556 a356a5 *8)dir5 OA)EE
CONSOLDATED CASH FU,W STATEMEIT FOR THE YEA,R EilDED 31" MARCH 2012
(Rupees in Crores)
Particulars Current Year Previous Year
Cash flows from operating activities

Net profit before taxation and exceptional and extra
ordinary ltems 786.39 414.70
Adiustments for:
Depreciation and amortisaiton 1102.O2 977.18
17.31't (18.78)
lnterest lncome
't@9.36 1369.23
lnterest Expense
Exceptional and Extra Ordinary items (Net) (8.62) 91 .32
an 7E\
Profit on sale of fixed assets
operating profit before working capital change 352 r.09 28 3 3.03
Ad,ustments for:
Trade Receivables (2O7O.',t 1\ (-t 33.67\
lnventories (127.3s1 r 3.98
Other current and non current assets (41.84\ 6.05
21.53 (4.71\
Loans and advances
Payables, liabilities and provisions r486.5'r 1428.96
)7Rq 7q Ll Aa 64
Net flow before extra ordinary activities
(108.25) (96.62')
lncome tax paid
Net Cash from operating activities 2681.53 4047.O2
I
Cash flows from investing activities
(481s.99) (4436.78\
Capital Expenditure
1 .32 1 .42
Sale of fixed assets
lncome received 7 .3^l 1A.78
(19.11) 0.00
lnvestment in Joint venture - APPDCL, APGIC 'I
50.00 (1s0.0o)
lnvestments in mutual funds
(4676.47) (4566.58)
Net cash from investing activities
Cash flows from financing activities
Proceeds from borrowings 4435.93 2986.12
Repayment of borrowings
(1384.6s) 0 294.30)
(70. 6) (67.74\
Net outflow of employee related funds s
-t49.14
Minority lnterest 168.32
(1s86.9s) (1328.99)
lnterest paid
Net cash from financing aciivities 1552.09 444.23
I
Net increase in cash and cash equivalents 432.85 75.33

Cash and cash equivalents at the beginning of the year 11.72 7 .O5
Cash and cash uivalents at the end of the ear 78.87 511.72
(432.8s) (7s.33)
ro This is the Consolidated Cash Flow Statement referred to in our report even date
I
For K.5. Rarnakristtna & Co., For and on behalf of the Board
Chaner€d Accounhnfs
Fi]m Regn. No. oO288aS
K. Rama Rao D. Prabhakar Rao K- ViiaYanand Dinesh Kumar
Partner Joint tvlanagin8 Director Managing Director Chairman
M-No. 2O6039
Place : Hyderabad FA & CCA (A/cs) Company Secretary
Date :21"Ju|y,2012
96
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35. Regrouping rearrangement and rounding off of Previous year's figures
35.1 Previous year's figures have been regrouped,/rearranged wherever necessary and have been
rounded offto crores.
For K.S. Ramakrishna & Co., For and on behalfofthe Board

Firm Regn. No. 0028885
K. Rama Rao D. Prabhakar Rao K. Vijayanand Dinesh Kumar
Partnet .loint Managing Director Managing Director Chairman
M.No.206039
S. Srinivasa Rao C. Adinarayana
Place : Hyderabad FA & CCA (A,/cs) Company Secretary
Date i 21" luly,2012
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APtrENCO
ANDHRA PRADESH POWER GENERATION CORPORATION LTD.
Vidyut Soudha, Khairatabad, Hyderabad - 5OO Og2
Phone : (040) 23499101, 39839201, Fax : 23317663
email : contactus@apgenco.gov.in www.apgenco.gov.in

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rrat Andhra Pradesh

. Tackling challenges and solving problems

D. Prabhakar Rao G. Adiseshu U.C. Krishna Murthy

Mrutyunjay Sahoo, I AS Chairman From 22.09.2O12

K.Vijayanand, I A S Managing Director

D. Prabhakar Rao Joint Managing Di rector

G. Adiseshu Director (Hydel)

U.C. Krishna Murthy Director (Techn ical)

C. Radha Krishna Director (Projects)

G. Vaman Rao Director (HR)

S. Anjaneya Rao Director (Thermal)

T. Prabhakar Rao, IRTS Director (Coal & Logistics)

Pushpa Subrahmanyam Director(Non-Executive) From 19.O1.2O12

T. Satyanarayana Rao, I A S Director (Non-Executive) Upto 19-01 -2012

Aditya Nath Das, I A S Director (Non-Executive)

C. Adinarayana Company Secretary

STATUTORY AUDITORS COST AUDITORS

6. Profit and Loss Account 25

7. Notes to Accounts 26-57

8. Cash Flow Statement 58

11. Profit and Loss Account 63

12. Notes to Accounts 6+9s

Sales & other lncome 11490.52 8990.97

Provision for Tax 153.O7 102.32

Deferred tax liability - current year 134.62 94.O7

Defened tax liability - previous year 75.84

Net Profit after Tax 401.52 313.22

DIRECTORS' RESPONSIBI IITY STATEMENT :

ASH UTII.ISATION FOR THE YEAR 2OT 1.12 :

HUMAN RESOURCES DEVEI-OPMENT :

coNsEnvATtoN oF ENERGY, TECHNOIOGY AESORPTION, TOREIGN EXCHANCE

PATTICUI.ARS OF EMPI.OYEE5 PURSUANT TO PROVISION OF SECTION 217 (2AI OF

For and on behalf ofthe Board

APGENCO ERP Office at Erratadda

C. FOR,EIGN EXCHANGE EARN!NGSAND OUTCO

FONM FOR OTSCTOSUNE OF PAITICUIJiNSW.]TH NESPECTTO AESORSTION OFTECHNOT(rcY

I B) TECHNOLOGYABSORPTION,ADAPTATION AND INNOVATION

# O PARTICUTARS OF TECHNOTOGIES IMPORTED DURINC THE YEAR

For and on be{ratf of the Board

KTPS Vl Stage(l x 500 MW)

1 We have audited the attached Balance Sheet of ANDHRA PRADESH POWER

2 We conducted our audit in accordance with Auditing Standards generally accepted in

4 Furtherto ourcomments in the Annexure referred to in paragraph 3 above, and subjectto:

Otlice '. 5-9-22138/2, Adarshnagar, HYDERABAD - 5OO 063.

For K.S. Rarnalrishna & Co.,

Oflice : 5-9-22138/2, Adarshnagar, HYDERABAD - 500 063.

Annexure to the Auditors'Report

a) The Company is maintaining a record showing the particulars, including

a) As perthe information and explanations given to verification of

For K.S. Rarnakrishna & Co.,

The preparation of financial statements of Andhra Pradesh Power Ceneration

l, on behalf of the Comptroller and Auditor Ceneral of lndia, have conducted a

Forand on the behalfof

Place Hyderabad K.R. SRIRAM

I EQUITY AND tlABll-lTlES Sito 66{D 6*rdrr..rb6D.r,

See accompanying notes to the financial statements €85 6S nFaS.rr €666.c66D.

NOTES FORMING PART OF THE ACCOUNTS

2.1 The preparation of financial statements requires management to make certain

3.1 Fixed Assets are shown at historical cost.

6 Assets taken on Lease

l0 Provisions and Contintencies

l4 Research and Developmenl