THE RECEIVABLES LEDGER

 

Coal sales and power sales create different dues. Can the public record show what is owed, what is disputed, and what has been collected?

By Murthy ASR  |  Biz Masala Investigative Series

One company, two revenue streams—and two different ledgers

Singareni Collieries Company Limited (SCCL) earns revenue from coal sales and from electricity generated by its Singareni Thermal Power Plant. Both streams connect the company to Telangana’s power sector, but the invoices, contractual terms, regulatory disputes and payment flows are different. Any serious examination of its cash position must keep them separate.

The latest annual report provides a clear starting point for the power-sale question: SCCL reported ₹13,846.61 crore in gross outstanding receivables from thermal-power sales to Telangana distribution companies as at 31 March 2025. The same disclosure identifies ₹1,767.30 crore as credit-impaired and says bills worth ₹1,921.75 crore had been discounted, leaving net effective receivables of about ₹11,925 crore as stated by the company. These are the company’s reported figures, not proof that the whole balance is overdue or unrecoverable.

Revenue grew—but revenue is not cash

SCCL’s 2023–24 annual report breaks down revenue from contracts with customers for coal and power. Coal revenue rose from ₹21,764.00 crore in 2022–23 to ₹25,456.84 crore in 2023–24. Power revenue was ₹4,395.86 crore and ₹4,551.18 crore, respectively. These are revenue figures; they do not tell us how much cash was collected during each year or how old the unpaid balances were.

Revenue category	FY 2022–23	FY 2023–24
Coal revenue	₹21,764.00 crore	₹25,456.84 crore
Power revenue	₹4,395.86 crore	₹4,551.18 crore
Total revenue from contracts with customers	₹26,185.51 crore	₹30,019.34 crore

Source: SCCL Annual Report & Accounts 2023–24, disaggregated revenue information.

The critical disclosure: power-sale receivables

SCCL’s 2024–25 auditors identified power-sale receivables and expected credit loss as a key audit matter. The report said the gross receivable of ₹13,846.61 crore was approximately three times annual power-generation revenue of ₹4,393.27 crore. It also said the ₹1,767.30 crore provision related to premium amounts disallowed by the Telangana Electricity Regulatory Commission, against which SCCL had filed appeals before the Appellate Tribunal for Electricity.

The distinction is important. A regulatory disallowance under appeal is not the same as a final determination that the amount can never be collected. Likewise, a balance outstanding on 31 March 2025 may have changed since then. The next evidence required is the latest ageing schedule, post-year-end collections, appeal status and any updated accounting provision.

The coal-sales ledger must be reconstructed separately

In February 2026, SCCL’s monthly performance reporting was cited as showing substantial outstanding coal-supply dues attributed to TGGENCO. That figure should not be merged with power-sale receivables. Before publication of a consolidated financial conclusion, we need the exact month-end statement, ageing, disputed amounts, subsequent receipts and audited annual-account treatment. A monthly operational report is not a substitute for a reconciled receivables note in the audited accounts.

What the public record should tell us next

1.       At 31 March 2025, how much of power-sale receivables was current, overdue by 6–12 months, and overdue by more than one year?

2.       What collections were recorded after the reporting date, and what balance remained at the latest available month-end?

3.       What is the current status of SCCL’s appeals against the regulatory disallowances, and how much of the disputed amount is covered by the expected-credit-loss provision?

4.       What are the coal-sales receivables from TGGENCO and other customers, kept separately from power-sale receivables?

5.       How much has been collected against the reported coal dues since February 2026, and what remains disputed or not yet due?

6.       What are SCCL’s borrowings, finance costs, cash balances and operating cash flow across FY2022–23, FY2023–24 and FY2024–25?

7.       Have large receivables affected capital expenditure, mine development, contractor payments or working-capital financing? If so, what do the accounts quantify?

8.       How do SCCL and the distribution companies reconcile their respective balances, and are confirmations or differences disclosed by their auditors?

What we can—and cannot—conclude

The published annual reports establish that power-sale receivables were material relative to annual power revenue, and that a portion was subject to regulatory disputes and an expected-credit-loss provision. They also show that SCCL’s coal and power revenue streams have different scales and should be analysed separately.

The currently assembled public figures do not yet establish the full three-year movement in cash collections, overdue balances, coal-supply dues or financing consequences. We should not claim that SCCL is in a ‘money trap’ unless the comparative accounts support that conclusion. The evidence-led finding at this stage is narrower: material receivables and unresolved regulatory questions justify a transparent reconciliation of the two ledgers.

Sources and editorial notes

SCCL Annual Report & Accounts 2023–24: https://scclmines.com/scclnew/arti.asp?rt=160.PDF

SCCL Annual Report & Accounts 2024–25: https://scclmines.com/scclnew/arti.asp?rt=169.PDF

Official SCCL annual reports index: https://scclmines.com/scclnew/rtic6.asp

SCCL monthly reporting portal: https://scclmines.com/scclnew/rtic11.asp

Editorial standard: figures are attributed to SCCL’s published accounts and are not independently reconciled against the distribution companies’ ledgers in this draft. Revenue is not cash collection; receivables are not automatically losses; disputed amounts are not final liabilities. Illustrations are AI-generated editorial images, not documentary photographs.

 

BIZ MASALA

BUSINESS. MONEY. POWER.

Murthy ASR