Renewing Growth through Renewables
Renewing Growth Through Renewables
Living up to our Founder's vision - to provide the country
and its people with affordable, clean and abundant power,
Tata Power takes pride in leading the reform process for
sustainable power. It is committed to safeguarding the
environment for future generations.
In its quest to deliver sustainable energy, the Company
has spread its footprint nationwide, setting new
benchmarks for operational efficiencies, investing in
global resources and redefining paradigms - thereby
positioning itself not only as India's largest integrated
power company, but also as India's largest green energy
player. In the year gone by, the Company added 1,463 MW
of renewable capacity, thereby surpassing the 2,000 MW
operating capacity mark with another about 500 MW
currently under construction.
The Company’s non-fossil fuel based green generation
portfolio (comprising hydro, waste gas, solar and wind)
has crossed the 3,000 MW mark and now stands at 3,141
MW. This includes 693 MW of Hydro, 933 MW of Solar,
1,140 MW of Wind, and 375 MW of waste gas-based
generation.
In the last financial year, the Company's wind generation
capacity increased by 93%, from 591 MW to 1,140 MW
and solar generation capacity soared up from 56 MW to
933 MW. Additionally, Tata Power's renewable arm - Tata
Power Renewable Energy Limited (TPREL) completed the
acquisition of Welspun Renewables Energy Private
Limited (WREPL) which had 1,140 MW of renewable
power assets. On the international front, Tata Power's
South African Joint Venture Company, Cennergi Pty.
Limited (Cennergi), started commercial operations of
both its wind farms totalling 230 MW, making it a truly
international power company.
Tata Power aims to set higher benchmarks in terms of
development standards and in the implementation of
cutting-edge eco-friendly technologies and processes of
energy management - including Biomass Gasification,
Concentrated Photovoltaic and Solar-powered Telecom
Towers. The Company has also done a pilot to build the
first floating concentrated solar PV plant in India.
Taking a step further towards building a greener portfolio,
last year, the Company committed to revising its share of
non-fossil fuel based capacity up to 30-40% by 2025.
As India's largest integrated power company with a
significant international presence - and together with its
subsidiaries and jointly controlled entities, today, the
Company has a gross generation capacity of 10,463 MW. It
has a presence in all the segments of the power sector viz.
Fuel Security and Logistics, Generation (thermal, hydro,
solar and wind), Transmission, Distribution and Trading. It
is serving more than 2.6 million distribution consumers in
India - spanning Mumbai, Delhi and Ajmer - and takes
pride in lighting up lives.
CEO & Managing Director's Message
Dear Shareholders,
It is with great pride that I write to you as the CEO &
Managing Director of this historic organisation
which has carved a leadership position for itself as
the largest integrated power company over the past
century. Despite the challenging environment in the
power sector in recent years, it has continued to
reinvent itself through its vast portfolio of
Generation, Transmission, Distribution, Power
Trading, Power Services, Coal Mines and Logistics,
Solar Photovoltaic (PV ) manufacturing and
associated Engineering, Procurement, Construction
(EPC) services businesses. It has expanded its
international presence and continues to look for
viable business opportunities in both, domestic and
overseas growth markets to deliver value to
shareholders.
At its very inception, Tata Power was driven by its
Founder Shri Jamshetji Tata’s vision - "Clean,
affordable & abundant power is one of the basic
ingredients for the economic progress of a city, state or
country". Tata Power remains true to this vision of
partnering consumers' growth by supplying reliable
power at competitive pricing. As India moves
towards self-sufficiency in power, your Company is
increasingly engaging on customer centricity by
employing the best suited technologies to improve
user experience.
The power sector is positioned at a juncture where
multiple changes are envisaged. Digitalization,
decarbonisation and decentralized model of energy
linkage are poised to disrupt present paradigms of
business. Your Company is continually evaluating
opportunities for improvement on these fronts and
integrating them within their operations, execution and
growth processes as the pioneer in the industry.
There are some challenges to functioning in a highly
regulated industry. One of the key issues being faced
since Indonesia changed its coal export norms is that of
CGPL compensatory tariff. We have approached all
courts of appeal and are continuing to explore viable
options to address the issues at hand including sourcing
of suitably priced coal, holding continued discussions
with the power procuring states and finding the right
legal recourse.
Tata Power has a strong ethical, value based culture
which is exercised not only in its business activities, but
also in its interactions with its communities and through
sustainability initiatives, making it a neighbour of
choice. In addition, responsible employee practices
have led to an engaged and productive work force
which is dedicated to keeping your Company at the
helm in the industry.
The entire team of Tata Power joins me in expressing our
deep appreciation to the employees, the unions, the
Board of Directors, all our partners and Governments at
the Centre and the States; Regulators as also our
international
stakeholders, for their support, co-
operation and understanding. I would also like to
express our appreciation to you, our shareholders, for
your support and understanding, both, in good times
and in challenging times. It will be my continuing
endeavour to fulfil Tata Power’s commitment to light up
lives.
Best Regards
Anil Sardana
CEO & Managing Director
Highlights of the Year
?Tata Power's consumer base crossed 2 million mark which is the second highest across the
country.
?Tata Power's generation crossed 52,000 MUs for the first time in FY17.
?Clean Energy portfolio crossed 3,000 MW mark and stood at 3,141 MW.
?Tata Power's arm TPREL completed the acquisition of WREPL which has 1,140 MW of
Renewable Power projects.
?Tata Power Delhi Distribution Limited achieved a benchmark reduction in AT&C losses to
8.59% as against 8.88% for the same period last year.
?187 MW hydro in Georgia is ready for commissioning.
?Tata Power's South African Joint Venture Company (JVC), Cennergi, started Commercial
Operations of both the wind farms totaling 230 MW.
?Tata Power's wholly owned subsidiary Tata Power International Pte. Limited and ICICI
Venture Funds Management Company Limited - Resurgent Power Ventures Pte.
Limited created a platform company to facilitate investment in power projects in India.
?The Company won the bid for Distribution Franchisee of Ajmer Circle and formed a Special
Purpose Company "TP Ajmer Distribution Limited". It has signed the Distribution
Franchisee Agreement with Ajmer Vidyut Vitran Nigam Limited to cater to the power
requirements of customers in Ajmer, for a period of 20 years.
?62.5x2 MW units for Tata Steel Kalinganagar by Industrial Energy Limited achieved full
commercial operations.
Growth Plans: India and International
PROJECTS COMMISSIONED:
?
TPREL commissioned projects of 159 MW which
included 44 MW wind farm at Rojmal (Gujarat), 100 MW
wind farm at Nimbagallu (Andhra Pradesh), 15 MW solar
plant at Belampalli (Telangana) 864 MW solar capacity
and 146 MW wind capacity was added by TPREL
through the acquisition of WREPL. In addition, TPREL
also acquired 30 MW wind capacity through the
acquisition of Indo Rama Renewables Jath Ltd.
?At Cennergi, both the projects of combined 230 MW
capacity have commenced commercial operation in Q2
FY 17.
?First and second units of 3 x 18 MW of PT Citra Kusuma
Perdana, coal power project in Indonesia have been
synchronised in October 2016 and March 2017.
PROJECTS UNDER EXECUTION:
?TPREL is executing solar projects to the tune of 326 MW
in Tamil Nadu, Maharashtra, Karnataka, Andhra Pradesh
and Gujarat, which were won through competitive
bidding.
?IEL is currently in the process of executing the third unit
of 67.5 MW capacity.
?Tata Power executed DFA for electricity distribution
in Ajmer. The Special Purpose Company has already
been formed and a dedicated team deployed to
commence takeover activities. DFA has been signed
with Ajmer Vidyut Vitran Nigam Limited on 21 April
2017.
st
?The construction work for 187 MW Adjaristsqali
Georgia LLC Project is in full swing. Commercial
operation is expected by Q2 of FY 18.
?The third unit of the 3x18MW PT Citra Kusuma
Perdana configuration is under construction at
Sangatta, East Kalimantan province in Indonesia.
POTENTIAL FUTURE GROWTH AREAS:
?For 1,600 MW Coastal Maharashtra project,
Dehrand, the Company has successfully completed
acquisition and possession of private land. All statutory
approvals required to start the project are in place.
Clearance by Government of Maharashtra for transfer of
Government land to Maharashtra Industrial
Development Corporation for Tata Power is in final
stages.
?Tata Power's primary investment vehicle for clean and
renewable energy based power generation - TPREL’s
present operating capacity is 1,457 MW comprising 530
MW wind and 927 MW solar located in the states of
Maharashtra, Gujarat, Madhya Pradesh, Andhra
Pradesh, Telangana, Punjab, Bihar, Tamil Nadu and
Rajasthan. The Company is also in the process of
implementing nearly 326 MW of renewable power
projects at various locations on greenfield basis.
Leadership with Care
Tata Power's Sustainability vision is to practice 'Leadership with Care' by pursuing best practices on
Care for our Environment, Community, Customers, Shareholders, People and creating a culture that will
reinforce our values.
CARE FOR ENVIRONMENT:
During the year, Tata Power addressed various aspects of resource conservation, energy efficiency,
carbon footprint, renewable power generation, biodiversity and green buildings. Key initiatives are:
?The Company completed project for identification of Polychlorinated Biphenyls and also completed
natural capital valuation for hydro stations.
?The Company was awarded CII-ITC Sustainability Awards 2016 - Commendation for Significant
Achievement in Biodiversity.
?Tata Power’s Corporate Centre, Carnac office was awarded IGBC Gold rating under 'Green Existing
buildings' category.
?Tata Power Club Enerji, spearheaded by school children, has reached 533 schools across India,
sensitized more than 15.84 million citizens and saved more than 21 MUs till date. This saving is
equivalent to saving of more than 20,000 tons of CO . 1526 Mini Clubs have been formed all over
India under the Club Enerji initiative.
2
?'Act for Mahseer', a call-to-action pledge campaign designed to give Mahseer, an endangered fish
species, a fresh chance at survival, has been successfully positioned as India’s second largest
Leadership with Care
conservation initiative after ‘Save the Tiger’ campaign. This year, the movement crossed over 2
million online impressions and successfully garnered over 4000 pledges.
CARE FOR CUSTOMERS:
?Launched in May 2015, Tata Power's Be Green initiative follows the mantra that green is the only way
to evolve and has set new benchmarks by caring for the planet and its future. Tata Power aims to
utilise customer touch points such as social media, emailers, CRCs, bills etc., to promote and create
awareness, thus creating a collaborative and participative environment. On average, over 40,000
people are reached each month through messaging under 'Be Green', across touch points.
?Tata Power Delhi Distribution Limited (Tata Power-DDL) has installed Electric Vehicle Charging
Centers at five locations spread across its area of distribution. These charging centers will provide
access to free of cost charging to owners of Mahindra Reva Electric Cars.
CARE FOR COMMUNITY:
?Tata Power has actively worked on the key focus areas in Corporate Social Responsibility of
education, health, livelihood and employability, social capital and financial inclusivity, as well as
rural energy.
?Under its Affirmative Action program, the Company has implemented several initiatives for
Employment, Entrepreneurship, Employability, Education and Essential Amenities for the
communities around its operating sites.
Leadership with Care
?The major programs carried out in the neighbourhood of the operating plants and projects are Skill
Development Programs for youth (Industrial Training Institutes, Business Process Outsourcing
training and vocational trainings), entrepreneurial programs like fly ash brick making/supporting
Self Help Groups and support for educational initiatives for school children like scholarships and
coaching classes in the evenings along with assistance in the development of adequate
infrastructure.
?As part of disaster relief operations, the Company contributed towards relief efforts in Assam.
Besides this, 5 employees were selected to be trained as project managers to be deployed as part of
Tata Group relief efforts.
?Tata Power Skill Development Institute (TPSDI) has successfully trained over 11,000 people since
its inception.
CARE FOR OUR PEOPLE:
•
Safety is a core value and hence, the first priority. Safety and 5S programs of the Company have been
given a lot of thrust during the year. Training and awareness programs and safety drills were carried
out across various locations of the organisation.
• Greenolution was launched by Tata Power in 2012 to promote green living through identified
initiatives driven by employees. Over 900 employees have registered as Green Heroes since the
inception of the programme, with over 250 green
initiatives having been undertaken by them.
Financial highlights
CONSOLIDATED:
STANDALONE:
?
On a consolidated basis, Tata Power Group's FY17
Revenue* stood at ` 27,288 crore as compared to
` 28,526 crore last year, mainly due to lower fuel
and power cost and one off items.
?
PAT was up at ` 1,397 crore (before exceptional
item of ` 651 crore) as compared to ` 662 crore in
FY16, mainly due to higher contributions by the
coal mines in H2FY17, renewables business and
associates and MTM gain on forex and IRS
contracts in Coastal Gujarat Power Limited (CGPL).
?
Renewables business crossed ` 1,135 crore of
EBITDA and 2,000 MW capacity mark. During the
year, the Company added 1,350 MW of renewable
capacity largely through the Welspun acquisition.
?
For the Financial Year ended
March 2017,
Revenue* stood at ` 7,282 crore as compared to
` 8,316 crore last year, mainly due to lower power
purchase and fuel cost.
st31
?
PAT stood at ` 935 crore (before exceptional item
impact of ` 651 crore) as against ` 1,355 crore in
the last year mainly due to favourable regulatory
orders in previous year and higher carrying cost
along with higher finance cost in current year.
However, operating profits continue to be strong.
Standalone Revenue from
Operations (in crore)
`
Standalone Profit after Tax
(in crore)
`
Consolidated Networth
(in crore)*
`
10000
8000
6000
4000
2000
2013
IGAAP
2014
IGAAP
2015
IGAAP
2016
Ind AS
2017
Ind AS
1400
1200
1000
800
600
400
200
*
15000
12000
9000
6000
3000
*
2014
IGAAP
2013
IGAAP
2017
Ind AS
* Before loss towards contractual obligation to
purchase TTSL shares from NTT DoCoMo
2016
Ind AS
2015
IGAAP
2013
IGAAP
2014
IGAAP
2015
IGAAP
2016
Ind AS
2017
Ind AS
* Includes Unsecured Perpetual Securities (` 1,500 crore)
Consolidated Revenue from
Operations (in crore)
`
Consolidated Profit after Tax
(in crore)
`
Standalone Earning
Per Share (in crore)
`
40000
30000
20000
10000
2013
IGAAP
2014
IGAAP
2015
IGAAP
2016
Ind AS
2017
Ind AS
1500
1000
500
0
-500
*
5.00
4.00
3.00
2.00
1.00
*
2014
IGAAP
2013
IGAAP
2017
Ind AS
* Before loss towards contractual obligation to
purchase TTSL shares from NTT DoCoMo
2016
Ind AS
2015
IGAAP
2013
IGAAP
2014
IGAAP
2015
IGAAP
2016
Ind AS
2017
Ind AS
* Before loss towards contractual obligation to
purchase TTSL shares from NTT DoCoMo
Awards & Recognition
?
Tata Power's Corporate Centre, Carnac building awarded "IGBC GOLD" rating, under
"IGBC's Green Existing Buildings" category.
?Tata Power's Quality Circle teams win 'Gold' award at International Convention on
Quality Control Circles 2016.
?CII awards Maithon Power Plant for its excellence in Operation Management and
People Management.
?Tata Power honoured with SAP ACE Award 2016.
?Tata Power's Maithon Power Plant awarded with Global Energy Management
Award 2017.
?Tata Power's TPSDI conferred with an award for 'Capacity Building and Training' at
the Central Board of Irrigation & Power (CBIP) Awards 2017.
?Club Enerji & Greenolution were presented at IIM – Ahmedabad in February 2017 in
a TEDx IIM - Ahmedabad event held on the topic: “Driving Conservation by shaping
the future generations" under the theme 'Renaissance 2.0: Inspiring a better
tomorrow'.
Page 6
CORPORATE INFORMATION (as on 19.05.2017)
CORPORATE IDENTITY NUMBER: L28920MH1919PLC000567
Non-Independent, Non-Executive
Independent, Non-Executive
BOARD OF DIRECTORS
Mr. N. Chandrasekaran (Chairman)
Mr. S. Padmanabhan
Mr. Pravin H. Kutumbe (LIC Nominee)
Ms. Sandhya S. Kudtarkar
Mr. Nawshir H. Mirza
Mr. Deepak M. Satwalekar
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. K. M. Chandrasekhar
CEO & Managing Director
COO & Executive Director
Mr. Anil Sardana
Mr. Ashok S. Sethi
CHIEF FINANCIAL OFFICER
Mr. Ramesh N. Subramanyam
COMPANY SECRETARY
STATUTORY AUDITORS
Mr. Hanoz M. Mistry
Deloitte Haskins & Sells LLP
SOLICITORS
BANKERS
Mulla & Mulla & Craigie Blunt & Caroe
Cyril Amarchand Mangaldas
Axis Bank Limited
Citibank N. A.
DBS Bank Limited
ICICI Bank Limited
IDFC Bank Limited
Kotak Mahindra Bank Limited
Standard Chartered Bank Limited
Bank of America
Credit Agricole S. A.
HDFC Bank Limited
IDBI Bank Limited
Induslnd Bank Limited
State Bank of India
REGISTERED OFFICE:
Bombay House
24, Homi Mody Street
Mumbai 400 001
Tel. 022 6665 8282
Fax. 022 6665 8801
Email: tatapower@tatapower.com
Website: www.tatapower.com
CORPORATE OFFICE:
Corporate Centre
34, Sant Tukaram Road
Carnac Bunder
Mumbai 400 009
Tel. 022 6717 1000
SHARE REGISTRARS:
TSR Darashaw Limited
6-10, Haji Moosa Patrawala
Industrial Estate
20, Dr. E. Moses Road
Mahalaxmi, Mumbai 400 011
Tel. 022 6656 8484
Fax. 022 6656 8494
Email: csg-unit@tsrdarashaw.com
Website: www.tsrdarashaw.com
Corporate Information I 1
98th Annual Report 2016-17
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CONTENTS
Notice and Explanatory Statement .............................
Board’s Report .....................................................................
Annexures to the Board’s Report .................................
Management Discussion and Analysis ......................
Report on Corporate Governance ...............................
Business Responsibility Report .....................................
Consolidated Financial Statements
Auditors’ Report .................................................................
Annexure to the Auditors’ Report ................................
Consolidated Balance Sheet ..........................................
Consolidated Statement of Profit and Loss ..............
Consolidated Cash Flow Statement ............................
Consolidated Statement of Changes in Equity .......
Notes to the Consolidated Financial Statements ...
Form AOC - 1 .......................................................................
Standalone Financial Statements
Auditors’ Report ..................................................................
Annexure to the Auditors’ Report ................................
Balance Sheet ......................................................................
Statement of Profit and Loss ..........................................
Statement of Cash Flows .................................................
Statement of Changes in Equity ...................................
Notes to the Financial Statements ..............................
Performance Perspective ................................................
Glossary .................................................................................
Shareholder Information
Proxy Form
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As a measure of economy, copies of the
Annual Report will not be distributed at
the Annual General Meeting. Members
are requested to kindly bring their copies
to the meeting.
Annual General Meeting
Date
Time
Venue
:
:
:
Wednesday, 23rd August 2017
3:00 p.m.
Birla Matushri Sabhagar,
Sir Vithaldas Thackersey Marg,
19, New Marine Lines, Mumbai 400 020.
2 I Contents
The Tata Power Company Limited
NOTICE
UMPP, CGPL - Mundra, Gujarat
NOTICE
NOTICE IS HEREBY GIVEN THAT THE NINETY-EIGHTH ANNUAL GENERAL MEETING OF THE TATA POWER COMPANY LIMITED will
be held on Wednesday, the 23rd day of August 2017 at 3 p.m. at Birla Matushri Sabhagar, Sir Vithaldas Thackersey Marg, 19, New Marine
Lines, Mumbai 400 020, to transact the following business:-
Ordinary Business:
1.
2.
3.
4.
To receive, consider and adopt the Audited Financial Statements of the Company for the financial year ended
31st March 2017 together with the Reports of the Board of Directors and the Auditors thereon.
To receive, consider and adopt the Audited Consolidated Financial Statements of the Company for the financial year ended
31st March 2017 together with the Report of the Auditors thereon.
To declare a dividend on Equity Shares for the financial year ended 31st March 2017.
To appoint a Director in place of Ms. Sandhya S. Kudtarkar (DIN: 00021947), who retires by rotation and, being eligible, offers
herself for re-appointment.
5.
Appointment of Auditors
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant to the provisions of Sections 139, 142 and other applicable provisions, if any, of the Companies Act,
2013 (including any statutory modification or re-enactment thereof for the time being in force) and the Companies (Audit and
Auditors) Rules, 2014, as amended from time to time, S R B C & CO. LLP (SRBC), Chartered Accountants (ICAI Firm Registration
No.324982E/E300003), be and are hereby appointed as Statutory Auditors of the Company in place of Deloitte Haskins and
Sells LLP, the retiring auditors of the Company, to hold office for a period of 5 years from the conclusion of this, the 98th Annual
General Meeting (AGM) of the Company till the conclusion of the 103rd AGM of the Company to be held in 2022 (subject to
ratification of their appointment at every AGM, if so required under the Act) to examine and audit the accounts of the Company
at Mumbai and the divisions, on such remuneration as may be mutually agreed upon between the Board of Directors of the
Company and the Auditors.”
Special Business:
6.
Appointment of Mr. N. Chandrasekaran as a Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Mr. N. Chandrasekaran (DIN: 00121863), who was appointed as an Additional Director of the Company with
effect from 11th February 2017 by the Board of Directors and who holds office upto the date of this Annual General Meeting of
the Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature
for the office of Director, be and is hereby appointed a Director of the Company, liable to retire by rotation.”
7.
Appointment of Mr. S. Padmanabhan as a Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Mr. S. Padmanabhan (DIN: 00306299), who was appointed as an Additional Director of the Company with effect
from 16th December 2016 by the Board of Directors and who holds office upto the date of this Annual General Meeting of the
Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature
for the office of Director, be and is hereby appointed a Director of the Company, liable to retire by rotation.”
8.
Appointment of Ms. Anjali Bansal as a Director and as an Independent Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Ms. Anjali Bansal (DIN: 00207746), who was appointed as an Additional Director of the Company with effect
from 14th October 2016 by the Board of Directors and who holds office upto the date of this Annual General Meeting of the
Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing her candidature
for the office of Director, be and is hereby appointed a Director of the Company.
RESOLVED FURTHER that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Act
(including any statutory modification or re-enactment thereof for the time being in force) read with Schedule IV to the Act,
and the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended from time to time, appointment of
4 I Notice
The Tata Power Company Limited Ms. Anjali Bansal (DIN: 00207746), who has submitted a declaration that she meets the criteria for independence as provided in
Section 149(6) of the Act and who is eligible for appointment, as an Independent Director of the Company, not liable to retire
by rotation, for a term of five years commencing from 14th October 2016 upto 13th October 2021, be and is hereby approved.”
9.
Appointment of Ms. Vibha Padalkar as a Director and as an Independent Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Ms. Vibha Padalkar (DIN: 01682810), who was appointed as an Additional Director of the Company with effect
from 14th October 2016 by the Board of Directors and who holds office upto the date of this Annual General Meeting of the
Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing her candidature
for the office of Director, be and is hereby appointed a Director of the Company.
RESOLVED FURTHER that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Act
(including any statutory modification or re-enactment thereof for the time being in force) read with Schedule IV to the Act,
and the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended from time to time, appointment of
Ms. Vibha Padalkar (DIN: 01682810), who has submitted a declaration that she meets the criteria for independence as provided
in Section 149(6) of the Act and who is eligible for appointment, as an Independent Director of the Company, not liable to retire
by rotation, for a term of five years commencing from 14th October 2016 upto 13th October 2021, be and is hereby approved.”
10.
Appointment of Mr. Sanjay V. Bhandarkar as a Director and as an Independent Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Mr. Sanjay V. Bhandarkar (DIN: 01260274), who was appointed as an Additional Director of the Company with
effect from 14th October 2016 by the Board of Directors and who holds office upto the date of this Annual General Meeting of
the Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature
for the office of Director, be and is hereby appointed a Director of the Company.
RESOLVED FURTHER that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Act
(including any statutory modification or re-enactment thereof for the time being in force) read with Schedule IV to the Act,
and the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended from time to time, appointment of
Mr. Sanjay V. Bhandarkar (DIN: 01260274), who has submitted a declaration that he meets the criteria for independence as
provided in Section 149(6) of the Act and who is eligible for appointment, as an Independent Director of the Company, not
liable to retire by rotation, for a term of five years commencing from 14th October 2016 upto 13th October 2021, be and is
hereby approved.”
11.
Appointment of Mr. K. M. Chandrasekhar as a Director and as an Independent Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that Mr. K. M. Chandrasekhar (DIN: 06466854), who was appointed as an Additional Director of the Company with
effect from 4th May 2017 by the Board of Directors and who holds office upto the date of this Annual General Meeting of the
Company under Section 161(1) of the Companies Act, 2013 (the Act) but who is eligible for appointment and in respect of
whom the Company has received a notice in writing under Section 160(1) of the Act from a member proposing his candidature
for the office of Director, be and is hereby appointed a Director of the Company.
RESOLVED FURTHER that pursuant to the provisions of Sections 149, 152 and other applicable provisions, if any, of the Act
(including any statutory modification or re-enactment thereof for the time being in force) read with Schedule IV to the Act,
and the Companies (Appointment and Qualification of Directors) Rules, 2014, as amended from time to time, appointment of
Mr. K. M. Chandrasekhar (DIN: 06466854), who has submitted a declaration that he meets the criteria for independence as
provided in Section 149(6) of the Act and who is eligible for appointment, as an Independent Director of the Company, not
liable to retire by rotation, for a term of five years commencing from 4th May 2017 upto 3rd May 2022, be and is hereby approved.”
12.
Re-appointment of Mr. Ashok S. Sethi as COO and Executive Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant to the provisions of Sections 196, 197, 203 and other applicable provisions, if any, of the Companies
Act, 2013 (the Act) (including any statutory modification or re-enactment thereof for the time being in force) read with Schedule
V to the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended from
time to time, the consent of the Company be and is hereby accorded for the re-appointment and terms of remuneration of
Mr. Ashok S. Sethi (DIN: 01741911) as the COO and Executive Director of the Company for the period commencing from 1st April
Notice I 5
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 2017 to 30th April 2019, upon the terms and conditions set out in the Explanatory Statement annexed to the Notice convening
this meeting (including the remuneration to be paid in the event of loss or inadequacy of profits in any financial year during
the tenure of his re-appointment), with liberty to the Board of Directors to alter and vary the terms and conditions of the said
appointment in such manner as may be agreed to between the Board of Directors and Mr. Sethi.
RESOLVED FURTHER that the Board of Directors of the Company (which term shall be deemed to include any Committee of
the Board constituted to exercise its powers, including the powers conferred by this Resolution), be and is hereby authorised
to take all such steps as may be necessary, proper and expedient to give effect to this Resolution.”
13.
Revision in terms of remuneration of Mr. Anil Sardana, CEO and Managing Director
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that in partial modification of Resolution No.8 passed at the Annual General Meeting of the Company held on
21st September 2016 for the appointment and terms of remuneration of Mr. Anil Sardana (DIN: 00006867), CEO and Managing
Director of the Company and pursuant to the provisions of Sections 196, 197 and other applicable provisions, if any, of the
Companies Act, 2013 (the Act) (including any statutory modification or re-enactment thereof for the time being in force) read
with Schedule V to the Act and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as
amended from time to time, consent of the Company be and is hereby accorded to the revision in the terms of remuneration
of Mr. Anil Sardana, CEO and Managing Director of the Company, by way of increase in the maximum amount of basic salary
payable to Mr. Anil Sardana (including the remuneration to be paid in the event of loss or inadequacy of profits in any financial
year during the tenure of his appointment) with authority to the Board of Directors (hereinafter referred to as the ‘Board’,
which term shall be deemed to include any Committee of the Board constituted to exercise its powers, including the powers
conferred by this Resolution) to fix his salary within such maximum amount, increasing thereby, proportionately, all benefits
related to the quantum of salary, with effect from 1st April 2018 for the remainder of the tenure of his contract, as set out in the
Explanatory Statement annexed to the Notice convening this meeting.
RESOLVED FURTHER that the Board be and is hereby authorised to take all such steps as may be necessary, proper and expedient
to give effect to this Resolution.”
14.
Private placement of Non-Convertible Debentures/Bonds
To consider and, if thought fit, to pass the following resolution as a Special Resolution:-
“RESOLVED that pursuant to the provisions of Sections 42, 71 and other applicable provisions, if any, of the Companies Act, 2013
(including any statutory modification or re-enactment thereof for the time being in force) and the Companies (Prospectus and
Allotment of Securities) Rules, 2014 and the Companies (Share Capital and Debentures) Rules, 2014, both as amended from time
to time, the consent of the Company be and is hereby accorded to the Board of Directors (hereinafter referred to as the ‘Board’,
which term shall be deemed to include any Committee of the Board constituted to exercise its powers, including the powers
conferred by this Resolution) for making offer(s) or invitation(s) to subscribe to cumulative/non-cumulative, listed or unlisted,
redeemable non-convertible debentures/ bonds (NCDs) on private placement basis, in one or more series / tranches during a
period of one year from the date of passing this Resolution, upto an amount not exceeding ` 7,000 crore on such terms and
conditions as the Board may, from time to time, determine and consider proper and most beneficial to the Company including
as to when the said NCDs be issued, the consideration for the issue, utilization of issue proceeds and all matters connected
with or incidental thereto and that such borrowing is within the overall borrowing limits of the Company.
RESOLVED FURTHER that for the purpose of giving effect to this Resolution, the Board be and is hereby authorised to finalise,
settle and execute such documents, deeds, writings, papers or agreements as may be required and do all such acts, deeds,
matters and things as it may in its absolute discretion deem necessary proper and desirable and to resolve any question, difficulty
or doubt that may arise in relation thereto or otherwise considered by the Board to be in the best interest of the Company.”
15.
Increase in the Authorised Share Capital of the Company
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant to the provisions of Section 61 and other applicable provisions, if any, of the Companies Act, 2013
(including any statutory modification or re-enactment thereof for the time being in force) and the Companies (Share Capital and
Debentures) Rules, 2014, as amended from time to time, the Authorised Share Capital of the Company be and is hereby increased from
` 529 crore divided into 300,00,00,000 Equity Shares of ` 1 each and 2,29,00,000 Cumulative Redeemable Preference Shares
of ` 100 each to ` 579 crore divided into 350,00,00,000 Equity Shares of ` 1 each and 2,29,00,000 Cumulative Redeemable
Preference Shares of ` 100 each by creation of 50,00,00,000 Equity Shares of face value of ` 1 each.”
6 I Notice
The Tata Power Company Limited 16.
Alteration of the Memorandum of Association of the Compnay
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant the provisions of Section 13 and other applicable provisions, if any, of the Companies Act, 2013
(including any statutory modification or re-enactment thereof for the time being in force), the Memorandum of Association
of the Company be and is hereby altered by substituting the existing Clauses V and VI with the following:
‘V. The Capital of the Company is ` 579 crore (Rupees Five hundred seventy-nine crore only) capable of being increased in
accordance with the Company’s regulations and the legislative provisions for the time being in force.
VI. The said capital is divided into 2,29,00,000 Cumulative Redeemable Preference Shares of ` 100 each and 350,00,00,000
Equity Shares of ` 1 each.’”
17.
Appointment of Branch Auditors
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant to the provisions of Section 143(8) and other applicable provisions, if any, of the Companies Act, 2013
(the Act) (including any statutory modification or re-enactment thereof for the time being in force) and the Companies (Audit
and Auditors) Rules, 2014, as amended from time to time, the Board of Directors be and is hereby authorised to appoint as
Branch Auditor(s) of any Branch Office of the Company, whether existing or which may be opened/acquired hereafter, outside
India, in consultation with the Company’s Auditors, any persons, qualified to act as Branch Auditors within the provisions of
Section 143(8) of the Act and to fix their remuneration.”
18. Ratification of Cost Auditor’s Remuneration
To consider and, if thought fit, to pass the following resolution as an Ordinary Resolution:-
“RESOLVED that pursuant to the provisions of Section 148(3) and other applicable provisions, if any, of the Companies Act,
2013 (including any statutory modification or re-enactment thereof for the time being in force) and the Companies (Audit
and Auditors) Rules, 2014, as amended from time to time, the Company hereby ratifies the remuneration of ` 6,50,000 plus
Service tax, travel and actual out-of-pocket expenses incurred in connection with the audit, payable to M/s. Sanjay Gupta
and Associates, who are appointed as Cost Auditors to conduct the audit of cost records maintained by the Company for the
financial year 2017-18.”
NOTES:
1.
2.
3.
4.
5.
The relative Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 (the Act), in regard to the business
as set out in Item Nos.5 to 18 above and the relevant details of the Directors seeking re-appointment/appointment under
Item Nos.4 and 6 to 12 above as required by Regulation 26(4) and 36(3) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations) and as required under Secretarial Standard
- 2 on General Meetings issued by The Institute of Company Secretaries of India, are annexed hereto.
A MEMBER ENTITLED TO ATTEND AND VOTE IS ENTITLED TO APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF
AND THE PROXY NEED NOT BE A MEMBER. Proxies, in order to be effective, must be received at the Company’s Registered Office
not less than 48 hours before the meeting. Proxies submitted on behalf of companies, societies, partnership firms etc. must be
supported by appropriate resolution/authority, as applicable, issued on behalf of the nominating organisation.
Members are requested to note that a person can act as a proxy on behalf of members not exceeding 50 and holding in the
aggregate not more than 10% of the total share capital of the Company carrying voting rights. In case a proxy is proposed to
be appointed by a member holding more than 10% of the total share capital of the Company carrying voting rights, then such
proxy shall not act as a proxy for any other person or member.
Corporate members intending to send their authorised representatives to attend the Annual General Meeting (AGM) are
requested to send a certified copy of the Board Resolution authorising their representative to attend and vote on their behalf
at the AGM.
In case of joint holders attending the AGM, only such joint holder who is higher in the order of names will be entitled to vote.
The Register of Members and the Transfer Books of the Company will remain closed from Saturday, 12th August 2017 to
Wednesday, 23rd August 2017, both days inclusive. If the dividend, as recommended by the Board of Directors, is approved
at the AGM, payment of such dividend will be made on or after 24th August 2017, as under:
i)
To all Beneficial Owners in respect of shares held in electronic form as per the data as may be made available by
National Securities Depository Limited and Central Depository Services (India) Limited (both collectively referred to as
‘Depositories’) as of the close of business hours on 11th August 2017;
Notice I 7
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE ii)
To all members in respect of shares held in physical form after giving effect to valid transfers in respect of transfer
requests lodged with the Company on or before the close of business hours on 11th August 2017.
Members are requested to notify immediately any change in their addresses and/or the Bank Mandate details to the Company’s
Registrars and Share Transfer Agents, TSR Darashaw Limited (TSRD) for shares held in physical form and to their respective
Depository Participants (DP) for shares held in electronic form.
Members holding shares in electronic form may please note that their bank details as furnished by the respective Depositories
to the Company will be considered for remittance of dividend as per the applicable regulations of the Depositories and the
Company will not entertain any direct request from such members for change/deletion in such bank details. Further, instructions,
if any, already given by them in respect of shares held in physical form, will not be automatically applicable to the dividend
paid on shares held in electronic form. Members may, therefore, give instructions regarding bank accounts in which they wish
to receive dividend to their DPs.
Members are hereby informed that under the Act, the Company is obliged to transfer any money lying in the Unpaid Dividend
Account, which remains unpaid or unclaimed for a period of seven years from the date of such transfer to the Unpaid Dividend
Account, to the credit of the Investor Education and Protection Fund (the Fund) established by the Central Government.
Further, pursuant to the provisions of the Section 124 of the Act read with the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, as amended (IEPF Rules), all the shares on which dividends remain unpaid/
unclaimed for a period of seven consecutive years or more shall be transferred to the demat account of the IEPF Authority as
notified by the Ministry of Corporate Affairs (MCA). Hence, the Company urges all the members to encash / claim their respective
dividends during the prescribed period.
In accordance with the aforesaid provision of the Act read with the IEPF Rules, the Company has already initiated necessary
action for transfer of all shares in respect of which dividend declared for the financial year 2009-10 or earlier financial years
has not been paid or claimed by the Members for 7 (seven) consecutive years or more. The details of such dividends / shares
to be transferred to IEPF are uploaded on the website of the Company at www.tatapower.com under the ‘Investor Relations’
section.
Members who have not yet encashed their dividend warrant(s) for the financial year ended 31st March 2010 onwards, are
requested to make their claims to the Company accordingly, without any delay.
Members / claimants whose shares, unclaimed dividend etc. have been transferred to the demat account of the IEPF
Authority, may claim the shares or apply for refund by making an application to the IEPF Authority in Form IEPF-5 (available on
www.iepf.gov.in) along with requisite fee as decided by the IEPF Authority from time to time. Member / claimant can file only
one consolidated claim in a financial year as per the IEPF Rules.
On 5th September 2016, MCA, notified the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer
and Refund) Rules, 2016 (IEPF Rules). In accordance with the said IEPF Rules, the Company has uploaded the information in
respect of the unclaimed dividends as on the date of the previous AGM i.e. 21st September 2016, on the website of the IEPF viz.
www.iepf.gov.in and on the Company’s website viz. www.tatapower.com under the section ‘Investor Relations’.
Members holding shares in physical form and who have not registered their e-mail IDs are requested to register the same with
TSRD.
The Notice of the AGM alongwith the Annual Report 2016-17 is being sent by electronic mode to those members whose e-mail
addresses are registered with the Company/Depositories, unless any member has requested for a physical copy of the same.
For members who have not registered their e-mail addresses, physical copies are being sent by the permitted mode.
To support the ‘Green Initiative’, members who have not registered their e-mail addresses are requested to register the same
with TSRD/Depositories.
6.
7.
8.
9.
10.
11.
12.
Process and manner for members opting for e-voting are as under:-
I.
In compliance with provisions of the Act, Rule 20 of the Companies (Management and Administration) Rules, 2014
as amended by the Companies (Management and Administration) Amendment Rules, 2015 and Regulation 44 of the
Listing Regulations, the Company is pleased to provide members facility to exercise their right to vote on resolutions
proposed to be considered at the AGM by electronic means and the business may be transacted through e-voting
services. The facility of casting the votes by the members using an electronic voting system from a place other than
venue of the AGM (‘remote e-voting’) will be provided by National Securities Depository Limited (NSDL). Instructions
for e-voting are given hereinbelow. Resolution(s) passed by members through e-voting is/are deemed to have been
passed as if it/they have been passed at the AGM.
8 I Notice
The Tata Power Company Limited
II.
III.
IV.
Members are provided with the facility for voting through electronic voting system at the AGM and members attending
the AGM, who have not already cast their vote by remote e-voting, are eligible to exercise their right to vote at the AGM.
Members who have cast their vote by remote e-voting prior to the AGM are also eligible to attend the AGM but shall
not be entitled to cast their vote again.
The remote e-voting period commences on Sunday, 20th August 2017 (9:00 a.m. IST) and ends on Tuesday, 22nd August
2017 (5:00 p.m. IST). Members of the Company, holding shares either in physical form or in eletronic form, as on the
cut-off date of 16th August 2017, may cast their vote by remote e-voting. The remote e-voting module shall be disabled
by NSDL for voting thereafter. Once the vote on a resolution is cast by the member, the member shall not be allowed
to change it subsequently.
V.
The process and manner for remote e-voting are as under:
A.
In case a member receives an e-mail from NSDL (for members whose e-mail IDs are registered with the
Company/DP) :
(i)
(ii)
(iii)
(iv)
(v)
Open e-mail and open PDF file viz.: ‘Tata Power e-voting.pdf’ with your Client ID No. or Folio No. as
password. The said PDF file contains your user ID and password/PIN for remote e-voting. Please note
that the password is an initial password. If you are already registered with NSDL for e-voting then you
can use your existing user ID and password.
Launch internet browser by typing the following URL: https://www.evoting.nsdl.com
Click on Shareholder – Login
Select ‘EVEN’ of ‘The Tata Power Company Limited’, which is 106422.
If you are already registered with NSDL for remote e-voting, then you can use your existing user ID and
password/PIN for casting your vote.
NOTE:
•
•
•
•
In case you have forgotten your User Details/Password, you can use ‘Forgot User Details/Password?’
or ‘Physical User Reset Password?’ option available on www.evoting.nsdl.com.
In case you are holding shares in demat mode, user ID is the combination of DP ID + Client ID.
In case you are holding shares in physical mode, user ID is the combination of EVEN No. + Folio No.
After successful login, you can change the password with new password of your choice.
(vi)
If you login for the first time, please enter the user ID and password provided in the PDF file attached
with the e-mail as initial password. The Password Change Menu will appear on your screen. Change to
a new password of your choice, making sure that it contains a minimum of 8 digits or characters or a
combination of both. Please take utmost care to keep your password confidential.
(vii)
Home page of remote e-voting opens. Click on remote e-voting: Active Voting Cycles.
(viii) Now you are ready for remote e-voting as Cast Vote page opens.
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
Cast your vote by selecting appropriate option and click on ‘Submit’ and also ‘Confirm’ when prompted.
Upon confirmation, the message ‘Vote cast successfully’ will be displayed.
Once you have voted on the Resolution, you will not be allowed to modify your vote.
On the voting page, you may cast your vote by selecting an appropriate option ‘For’ or ‘Against’ and
click ‘SUBMIT’. A confirmation box will be displayed. Click ‘OK’ to confirm or ‘CANCEL’ to modify. Once
you confirm, you will not be allowed to modify your vote. Upon confirmation, the message ‘Vote Cast
Successfully’ will be displayed.
You can similarly vote in respect of all other Resolutions forming part of the Notice of the AGM. During
the voting period, members can login any number of times till they have voted on all the Resolutions.
If you wish to log out after voting on a few Resolutions and continue voting for the balance Resolutions
later, you may click on ‘RESET’ for those Resolutions for which you have not cast the vote.
Institutional members (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/
JPG Format) of the relevant Board Resolution/Authority letter etc. together with attested specimen
signature of the duly authorised signatory(ies) who are authorised to vote, to the Scrutinizer through
e-mail to cs@parikhassociates.com with a copy marked to evoting@nsdl.co.in
Notice I 9
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
B.
In case a member receives physical copy of the Notice of AGM (for members whose e-mail IDs are not registered
with the Company/DP or requesting physical copy) :
(i)
Initial password is provided in the Attendance Slip (separate insert):
EVEN (106422), USER ID PASSWORD/PIN
(ii)
Please follow all steps from Sl. No.(ii) to Sl. No.(xv) above, to cast vote.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
In case of any queries, you may refer the Frequently Asked Questions (FAQs) for members and remote
e-voting user manual for members available at the ‘downloads section’ of www.evoting.nsdl.com or call on
Toll Free No.: 1800-222-990.
You can also update your mobile number and e-mail id in the user profile details of the folio which may be used for
sending future communication(s).
The voting rights of members shall be in proportion to their shares of the paid-up equity share capital of the Company
as on the cut-off date of 16th August 2017.
Any person, who acquires shares of the Company and becomes member of the Company after dispatch of the Notice
and holding shares as of the cut-off date i.e. 16th August 2017, may obtain the login ID and password by sending a
request at evoting@nsdl.co.in or the Company/TSRD.
However, if you are already registered with NSDL for remote e-voting, then you can use your existing user ID and password
for casting your vote. If you forget your password, you can reset your password by using ‘Forgot User Details/Password?’
or ‘Physical User Reset Password?’ option available on www.evoting.nsdl.com or contact NSDL at the following Toll Free
No.: 1800-222-990.
A person whose name is recorded in the Register of Members or in the Register of Beneficial Owners maintained by
the Depositories as on the cut-off date only shall be entitled to avail the facility of remote e-voting, as well as voting at
the meeting.
Mr. P. N. Parikh (FCS 327) or failing him, Mr. Mitesh Dhabliwala (FCS 8331) of M/s. Parikh and Associates, Company
Secretaries have been appointed as Scrutinizer for providing facility to the members of the Company to scrutinize the
voting and remote e-voting process, in a fair and transparent manner.
The Chairman shall, at the AGM, at the end of discussion on the Resolutions on which voting is to be held, allow voting
with the assistance of Scrutinizer, by use of ‘e-voting’ for all those members who are present at the AGM but have not
cast their votes by availing the remote e-voting facility.
The Scrutinizer shall, after the conclusion of voting at the AGM, first count the votes cast at the meeting and, thereafter,
unblock the votes cast through remote e-voting, in the presence of at least two witnesses not in the employment of the
Company and shall make, not later than two days from the conclusion of the AGM, a Consolidated Scrutinizer’s Report
of the total votes cast in favour or against, if any, to the Chairman or a person authorised by him in writing, who shall
countersign the same and declare the result of the voting forthwith.
The Results declared, alongwith the Scrutinizer’s Report, shall be placed on the Company’s website www.tatapower.com
and on the website of NSDL, immediately after the declaration of the result by the Chairman or a person authorised by
him in writing. The results shall also be immediately forwarded to the Stock Exchanges where the Company’s Equity
Shares are listed viz. BSE Limited and National Stock Exchange of India Limited. The Results shall also be displayed on
the Notice Board at the Registered Office of the Company.
In case of grievances connected with facility for voting by electronic means, members are requested to contact
Mr. Amit Vishal, Senior Manager at amitv@nsdl.co.in or evoting@nsdl.co.in or on 022 2499 4360 / 1800-222-990. Members
may also write to him at NSDL, Trade World, ‘A’ Wing, 4th Floor, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel,
Mumbai 400 013.
13.
Updation of members details:
The format of the Register of Members prescribed by the Ministry of Corporate Affairs under the Act, requires the Company/
Registrars and Share Transfer Agents to record additional details of members, including their PAN details, e-mail address, bank
details for payment of dividend etc. A form for capturing additional details is appended at the end of this Annual Report.
Members holding shares in physical form are requested to submit the filled in form to the Company or its Registrars and Share
Transfer Agents in physical mode or in electronic mode, as per instructions mentioned on the form. Members holding shares
in electronic form are requested to submit the details to their respective DP only and not to the Company or its Registrar and
Share Transfer Agents.
10 I Notice
The Tata Power Company Limited
14. Members feedback:
The Company continuously endeavours to provide an informative and qualitative Annual Report to its Members. The Company
also strives to provide qualitative services to its investors. In furtherance of this objective, we request you to provide us feedback
on your experience as an investor of the Company by accessing the following link: https://www.tatapower.com/investor-
feedback-2017.aspx
Members are request to please give their feedback latest by 30th September 2017. Your feedback will help us improve future
Annual Reports and also re-validate our service levels and improve the same.
By Order of the Board of Directors,
H. M. Mistry
Company Secretary
FCS No.: 3606
Mumbai, 19th May 2017
Registered Office:
Bombay House,
24, Homi Mody Street,
Mumbai 400 001.
CIN: L28920MH1919PLC000567
Tel: 91 22 6665 8282 Fax: 91 22 6665 8801
E-mail: tatapower@tatapower.com
Website: www.tatapower.com
Notice I 11
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
EXPLANATORY STATEMENT
As required by Section 102 of the Companies Act, 2013 (the Act), the following Explanatory Statement sets out all material facts
relating to the business mentioned under Item Nos.5 to 18 of the accompanying Notice dated 19th May 2017:
Item No.5: This Explanatory Statement is provided though strictly not required as per Section 102 of the Act.
Section 139(2) of the Act read with the Companies (Audit and Auditors) Rules, 2014, has mandated all listed companies and
certain categories of unlisted public companies and private companies to mandatorily rotate their auditors (whether such auditor is
an individual or a firm) once their auditor has served office as an auditor for a period of 10 or more consecutive years (Rotation Period).
In this regard, the third proviso to Section 139(2) of the Act has provided a moratorium period, wherein companies incorporated prior
to 1st April 2014, have been provided a time period of 3 years from such date to comply with the requirement to rotate their auditors.
Therefore, beginning 1st April 2017, all companies who are required to rotate their auditors under the Act, will have to rotate their
existing auditors (Current Firm), if the Current Firm has held office as such company’s auditor for a period of 10 years or more.
Deloitte Haskins and Sells LLP (DHS) are the Statutory Auditors of the Company and most of its subsidiary companies and are
due for rotation at this Annual General Meeting (AGM) of the Company, as they have been the Company’s statutory auditors for more
than 10 years.
After a rigorous process with respect to selection of statutory auditors of the Company, which included several rounds of
discussion with various firms, their partners and personnel, S R B C & CO. LLP (SRBC), Chartered Accountants (ICAI Firm Registration
No. 324982E/E300003), was identified to be the next Statutory Auditor of the Company and other companies of the Tata Power group.
The selection is based on various factors like People, Audit Methodology, Quality Control, Reputation of the Firm and Knowledge.
SRBC is a firm of Chartered Accountants registered with The Institute of Chartered Accountants of India. SRBC was established in the
year 2002 and is a limited liability partnership firm incorporated in India. It has its registered office in Kolkata and 11 branch offices in
various cities in India. SRBC has valid Peer Review certificate and is part of S. R. Batliboi & Affiliates network of audit firms. It is primarily
engaged in providing audit and assurance services to its clients.
SRBC have been involved in the statutory audits and also internal audits of various companies in the power sector in the entire
value chain and, hence, has the necessary experience to conduct the statutory audit of the Company. The term of appointment is for
5 years, subject to ratification by members at each succeeding AGM, if so required under the Act.
SRBC have consented to the said appointment and confirmed that their appointment, if made, would be in accordance with
Section 139 read with Section141 of the Act.
Accordingly, approval of the members is being sought for the proposal contained in the Resolution set out at Item No. 5 of
the accompanying Notice.
The Board commends the Resolution at Item No.5 of the accompanying Notice for approval by the members of the Company.
None of the Directors or Key Managerial Personnel (KMP) of the Company or their respective relatives are concerned or interested
in the Resolution at Item No. 5 of the accompanying Notice.
Item No.6: Mr. N. Chandrasekaran was appointed as an Additional Director of the Company with effect from 11th February
2017, by the Board of Directors under Section 161 of the Act and Article 132 of the Company’s Articles of Association. In terms of
Section 161(1) of the Act, Mr. Chandrasekaran holds office only upto the date of the forthcoming AGM of the Company but is eligible
for appointment as a Director. A notice along with the requisite deposit under Section 160(1) of the Act has been received from a
member signifying its intention to propose Mr. Chandrasekaran’s appointment as a Director.
Mr. Chandrasekaran was also nominated as Chairman of the Board of Directors of the Company with effect from 11th February
2017, by Tata Sons Limited (Tata Sons) pursuant to Article 164(b) of the Company’s Articles of Association, wherein Tata Sons has the
right to nominate the Chairman of the Board of Directors of the Company.
Mr. Chandrasekaran is the Executive Chairman of Tata Sons. He was appointed as a director on Tata Sons’ board on 25th October
2016. He was the Chief Executive Officer and Managing Director of Tata Consultancy Services Limited (TCS), a leading global IT solution
and consulting firm; a position he held since 2009 till February 2017.
He joined TCS in 1987 after completing his master’s in computer applications from Regional Engineering College, Trichy, Tamil
Nadu, India. Under his leadership, TCS has become the largest private sector employer in India with the highest retention rate in a
globally competitive industry. TCS remains the most valuable company in India and ended 2015-16 with a market capitalisation of
over USD 70 Bn. Under Mr. Chandrasekaran’s leadership, TCS was rated as the world’s most powerful brand in IT services in 2015 and
recognised as a Global Top Employer by the Top Employers Institute across 24 countries.
A technopreneur known for his ability to make big bets on new technology, Mr. Chandrasekaran had been driving TCS’ strong
positioning in the emerging digital economy with a suite of innovative digital products and platforms for enterprises, some of which
have since scaled into sizeable new businesses.
12 I Notice
The Tata Power Company Limited He was also appointed as a director on the board of the Reserve Bank of India in 2016. He has served as the chairperson of IT
Industry Governors at the WEF, Davos, in 2015-16. He has been playing an active role in the Indo-US and India-UK CEO Forums. He is
also part of India’s business taskforces for Australia, Brazil, Canada, China, Japan and Malaysia. He served as the Chairman of Nasscom,
the apex trade body for IT services firms, in India in 2012-13 and continues to be a member of its governing executive council.
Mr. Chandrasekaran has received several awards and recognition in the business community. Recently, he was honoured with
the ’Business Leader Award’ at the ET Awards for Corporate Excellence 2016. He was also awarded Qimpro Platinum Standard Award
2015 (business) and Business Today’s Best CEO 2015 (IT and ITEs). He was voted the ‘Best CEO’ for the fifth consecutive year by the
Institutional Investor’s 2015 Annual All-Asia Executive Team rankings. During 2014, he was voted as one of CNBC TV 18 Indian Business
Icons. He was awarded CNN-IBN Indian of the Year 2014 in the business category. He was also presented with the ‘Best CEO for 2014’
award by Business Today for the second consecutive year. He has also received the Medal of the City of Amsterdam - Frans Banninck
Coqc - in recognition of his endeavour to promote trade and economic relations between Amsterdam and India.
Mr. Chandrasekaran was conferred with an honorary doctorate by JNTU, Hyderabad, India (2014). He has received an honorary
doctorate from Nyenrode Business Universiteit, Netherland’s top private business school (2013). He has also been conferred honorary
degrees by many Indian universities such as the Gitam University, Visakhapatnam, Andhra Pradesh (2013); KIIT University, Bhubaneswar,
Odisha (2012); and the SRM University, Chennai, Tamil Nadu (2010).
Mr. Chandrasekaran is also the Chairman of Tata Consultancy Services Limited, Tata Steel Limited, Tata Motors Limited, The
Indian Hotels Company Limited, Jaguar Land Rover Automotive PLC and TCS Foundation. He is also a Director on the Board of the
Reserve Bank of India.
The Board commends the Resolution at Item No.6 of the accompanying Notice for approval by the members of the Company.
Other than Mr. Chandrasekaran, none of the Directors or KMP of the Company or their respective relatives are concerned or
interested in the Resolution at Item No.6 of the accompanying Notice.
Mr. Chandrasekaran is not related to any other Director or KMP of the Company.
Item No.7: Mr. S. Padmanabhan was appointed as an Additional Director of the Company with effect from 16th December 2016
by the Board of Directors under Section 161 of the Act and Article 132 of the Company’s Articles of Association. In terms of Section 161(1)
of the Act, Mr. Padmanabhan holds office only upto the date of the forthcoming AGM of the Company but is eligible for appointment
as a Director. A notice along with the requisite deposit under Section 160(1) of the Act has been received from a member signifying
its intention to propose Mr. Padmanabhan’s appointment as a Director.
Mr. Padmanabhan was nominated as Chairman of the Board of Directors of the Company with effect from 3rd January 2017,
by Tata Sons pursuant to Article 164(b) of the Company’s Articles of Association, wherein Tata Sons has the right to nominate the
Chairman of the Board of Directors of the Company. He held office as Chairman till 10th February 2017 and, thereafter, continues as a
Non-Executive Director on the Company’s Board.
Mr. Padmanabhan is currently the Head of Group Human Resources for Tata Sons and Executive Chairman, Tata Business
Excellence Group (TBExG). In his role as Head of Group Human Resources, he is responsible for enabling key HR policies and initiatives
across the Tata Group globally. As Executive Chairman of TBExG, Mr. Padmanabhan is responsible for enabling the Business Excellence
journey across the Tata group of companies globally. This role, which he took on in 2014, is integral to Group initiatives in enhancing
the performance of Tata companies through diagnostics, benchmarking and sharing best practices.
His career with the Tata Group companies began with TCS in 1982 and spans over 34 years. During his 26 year stint in TCS, he
has held roles such as Executive Director of Human Resources, Head of Application Development and Maintenance, Head of Airlines
Practice and Country Manager, TCS Switzerland. He was also the CEO of Aviation Software Development Consultancy, a Joint Venture
between TCS and Singapore Airlines. As the Executive Director of HR at TCS, Mr. Padmanabhan was responsible for managing over
1,00,000 employees worldwide. During his tenure, TCS achieved the highest retention rates. He also set up scalable and sustainable
processes to make TCS a learning-focused organisation, capable of seamlessly integrating thousands of new employees each year.
During his tenure, he significantly strengthened the industry-academia relation with various Indian and international institutes.
Mr. Padmanabhan also played a pivotal role in overseeing the USD 1 Bn. TCS IPO – the largest in the country till then. He engaged
with multiple stakeholders and financial institutions across the globe to make this IPO one of the most successful ones in the Indian
corporate history.
Mr. Padmanabhan was also the Executive Director - Operations of Tata Power from 6th February 2008 to 30th June 2014, and was
responsible for the profitable and sustainable operations of all thermal and hydro generation plants across India and transmission and
distribution systems in Mumbai. He was also on the Boards of the operating subsidiaries of the Company.
Notice I 13
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Mr. Padmanabhan has a distinguished academic record in the technical and management domain from reputed institutions.
He is a Glaxo Marketing Scholar Medallist, a Distinguished Alumnus from IIM Bangalore, and a Gold Medallist and a Distinguished
Alumnus from PSG College of Technology, Coimbatore. He has completed the Advanced Management Program at the Harvard Business
School. He is also a life member of CSI, Senior Member of IEEE.
Mr. Padmanabhan is a Director on the Board of Infiniti Retail Limited, Tata Consulting Engineers Limited, Tata Chemicals Limited
and The Associated Building Company Limited.
The Board commends the Resolution at Item No.7 of the accompanying Notice for approval by the members of the Company.
Other than Mr. Padmanabhan, none of the Directors or KMP of the Company or their respective relatives are concerned or
interested in the Resolution at Item No.7 of the accompanying Notice.
Mr. Padmanabhan is not related to any other Director or KMP of the Company.
Item Nos. 8 to 11: Mr. Piyush G. Mankad, Mr. Ashok K. Basu and Dr. Homiar S. Vachha all Independent Directors of the Company,
retired as Directors of the Company effective 18th November 2016, 24th March 2017 and 23rd April 2017, respectively, consequent upon
their completing 75 years of age, as required by the guidelines adopted by the Company for retirement of Non-Executive Directors.
The Board of Directors, on the recommendation of the Nomination and Remuneration Committee (NRC), appointed
Ms. Anjali Bansal, Ms. Vibha Padalkar and Mr. Sanjay V. Bhandarkar on 14th October 2016 and Mr. K. M. Chandrasekhar on 4th May 2017,
as Additional Directors of the Company under Section 161 of the Act and Article 132 of the Company’s Articles of Association and
also as Independent Directors, not being liable to retire by rotation. Ms. Bansal, Ms. Padalkar and Mr. Bhandarkar were appointed for
a period of 5 years commencing from 14th October 2016 upto 13th October 2021. Mr. Chandrasekhar was appointed for a period of 5
years commencing from 4th May 2017 upto 3rd May 2022
In terms of Section 161(1) of the Act, Ms. Bansal, Ms. Padalkar, Mr. Bhandarkar and Mr. Chandrasekhar hold office only upto
the date of the forthcoming AGM of the Company but are eligible for appointment as Directors. A Notice along with the requisite
deposit under Section 160(1) of the Act has been received from a member signifying his intention to propose Ms. Bansal, Ms. Padalkar,
Mr. Bhandarkar and Mr. Chandrasekhar’s appointment as Directors.
The above mentioned Directors have given declarations to the Board that they meet the criteria for independence as provided
under Section 149(6) of the Act. These Directors also meet the criteria for independence as provided under Regulation 16(1)(b) of the
Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
A brief profile of the Directors to be appointed is given below:
Ms. Anjali Bansal is the former Global Partner and Managing Director with TPG Private Equity and a strategy consultant with
McKinsey and Company in New York and Mumbai. She founded and ran Spencer Stuart’s India practice successfully growing it to a
highly reputed pan-India platform. She was also a global partner and co-led their Asia Pacific Board and CEO practice as part of the
Asia Pacific leadership team. She started her career as an engineer.
She serves as an Independent Non-Executive Director on the public boards of GlaxoSmithKline Pharmaceuticals Limited, Bata
India Limited and Voltas Limited. She is on the Advisory Board of the Columbia University Global Centers, South Asia.
She is an enthusiastic participant in the entrepreneurial ecosystem, is charter member of TiE, angel investor and mentor to
young entrepreneurs and companies including the SAHA Fund, Female Founders Fund and others.
Ms. Bansal is deeply committed to social enterprise and is an advisor to SEWA. Previously, she chaired the India board of Women’s
World Banking, a leading global livelihood-promoting institution and was an advisor to Grameen Foundation.
An active contributor to the dialogue corporate governance and diversity, she co-founded and chaired the FICCI Center for
Corporate Governance program for Women on Corporate Boards. She serves on the managing committee of the Bombay Chamber of
Commerce and Industry and is part of the CII Directors Guild. She is a member of the Young Presidents’ Organization.
She has been listed as one of the ‘Most Powerful Women in Indian Business’ by India’s leading publication, Business Today, and
as one of the ‘Most Powerful Women in Business’ by Fortune India.
She has a Bachelor’s degree in Computer Engineering from Gujarat University and a Masters in International Finance and
Business from Columbia University.
Ms. Vibha Padalkar is Executive Director and Chief Financial Officer at HDFC Standard Life Insurance Company Limited
(HDFC Life). Post joining the company in August 2008, she has been leading the Finance, Internal Audit, Compliance, Risk Management,
Legal and Secretarial teams, and also has oversight of the Pension subsidiary company.
Prior to joining HDFC Life, Ms. Padalkar has had diverse experience in varied sectors, ranging from Outsourcing (WNS Global
Services) to FMCG (Colgate Palmolive).
14 I Notice
The Tata Power Company Limited Ms. Padalkar became a member of The Institute of Chartered Accountants in England and Wales in 1992. She is also a member
of the Institute of Chartered Accountants of India.
Mr. Sanjay V. Bhandarkar is the former Managing Director of Rothschild’s Investment Banking operations in India and continues
to be a part time Senior Advisor to Rothschild.
During his career with Rothschild, he advised on a variety of corporate finance transactions across M&A, Capital Markets and
Debt Restructuring.
A few notable deals include; advised Vodafone on their IPO preparations and on bidding in the 2G Spectrum auctions; advised
Aircel on the sale of its towers business to GTL; advised Suzlon on its debt restructuring discussions with international lenders; advised
the GVK-South African consortium on its bid for Mumbai airport privatisation; advised Cairn Plc on the sale of its interest in Cairn India;
advised Cairn Plc on the IPO of Cairn India.
Mr. Bhandarkar has a degree in Management from XLRI, Jamshedpur. Prior to Rothschild, he has also worked with Peregrine
Capital and ICICI Securities and Finance Company Limited. He has over two decades of experience in Investment banking.
Mr. K. M. Chandrasekhar entered the Indian Administrative Service in 1970. He was ranked third in the list in the batch. Prior
to that, he secured B.A. (Honours) in Economics and M.A. in History from St. Stephen’s College, University of Delhi. After entering
Government service, he did his M.A. in Management Studies from the University of Leeds in United Kingdom.
He spent the first 25 years of his career in Kerala, holding such positions as Managing Director of the State Civil Supplies
Corporation; District Collector, Idukki; Director of Fisheries; Principal Secretary (Industries) and Principal Secretary (Finance). During
this period, he was also Chairman of the Spices Board under the Ministry of Commerce, Government of India.
In 1996, he left Kerala on Central Government deputation. During his 15 years tenure with the Government of India, from
1996 to 2011, he was Joint Secretary in the key Trade Policy Division of the Ministry of Commerce, Deputy Chief of Mission in the
Embassy of India, Brussels and the Ambassador and Permanent Representative of India in the World Trade Organization in Geneva.
He rose to the position of Union Cabinet Secretary. As Cabinet Secretary, he was Head of all the Civil Services in India and reported
directly to the Prime Minister. He retained that position for four years. He retired from Government service in 2011 at the age of 63,
having served the Government for 41 years.
Post retirement, he was, for 5 years, Vice-Chairman, Kerala State Planning Board with rank of Cabinet Minister of the State.
Mr. Chandrasekhar has considerable management experience having been associated as Chairman, Managing Director or
member of the Board of Directors of more than 40 companies in the public, joint and private sector. He has written several articles and
presented papers. He has also been consultant to the Commonwealth Secretariat and to the UN Food and Agriculture Organization.
He is presently Chairman, The Federal Bank Limited; President, Sree Chitra Institute of Medical Sciences and Technology,
Trivandrum and Chairman, Centre for Development Studies, Trivandrum.
In the opinion of the Board, the above Directors fulfil the conditions specified in the Act and the Rules made thereunder for
appointment as Independent Directors as they are independent of the management.
The terms and conditions of their respective appointments shall be open for inspection by the members at the Registered
Office during normal business hours on any working day of the Company.
In compliance with the provisions of Section 149 read with Schedule IV to the Act, the appointment of the above Directors as
Independent Directors is now being placed before the members for their approval.
The Board commends the Resolutions at Item Nos.8 to 11 of the accompanying Notice for approval by the members of the
Company.
Other than Ms. Bansal, Ms. Padalkar, Mr. Bhandarkar and Mr. Chandrasekhar, who are concerned or interested in the respective
Resolutions relating to their appointment, none of the Directors or KMP of the Company or their respective relatives are concerned or
interested in the Resolutions mentioned at Item Nos.8 to 11 of the accompanying Notice.
Ms. Bansal, Ms. Padalkar, Mr. Bhandarkar and Mr. Chandrasekhar, are not related to any Director or KMP of the Company.
Item No.12: Mr. Ashok S. Sethi was appointed as Executive Director of the Company for the period commencing
from 7th May 2014 to 31st March 2017. The Board has, vide resolution passed on 10 th February 2017, re-appointed
Mr. Sethi as COO and Executive Director of the Company for a period commencing from 1st April 2017 upto 30th April 2019,
subject to approval of the members. This appointment was made based on recommendation by the NRC comprising
Mr. N. H. Mirza (Chairman), Mr. S. Padmanabhan, Dr. H. S. Vachha, Mr. D. M. Satwalekar and Ms. Anjali Bansal.
Mr. Sethi, aged 63 years, joined the Company on 1st August 1975, as a Graduate Engineer Trainee, on completion of B.Tech from
IIT, Kharagpur. He has worked diligently for the last about 41 years at Tata Power in different roles and has got exposure to all aspects
of the business such as Thermal and Hydro Generation, Transmission and Distribution, Commercial and Regulatory and Advocacy. This
Notice I 15
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE varied experience over such long period has resulted into a wide and deep understanding of the levers of business. This enables him
to drive operational excellence across the breadth of responsibilities.
Under the leadership of Mr. Sethi, operating divisions and subsidiaries took stretched operating targets to register continual
improvements in operating parameters and register robust operating performance year on year, which has reflected in improved
operating profits. Over the last few years all the operating stations have been conferred with prestigious awards in the areas of Safety,
Energy Conservation, Quality Systems and Operations from renowned organisations like FICCI, CBIP, CEA etc. Further, Maithon Power
Limited (MPL), a subsidiary company is today placed in top 20 operating stations in the report published by CEA.
He has mentored and developed capability to improve quality of strategic deployment of improvement projects for removal of
technical and commercial bottlenecks. He has guided building of comprehensive analysis methodology and continuous monitoring
of operating performance parameters for wind and solar farms have improved availability of wind turbines across all wind farms and
development of its own capability to manage O&M of wind farms. It will be a game changer and securitise wind assets.
He has focused on sale of power by SBUs (develops commercial acumen) which helped achieve full capacity PPA for MPL, tie up
with Railways as distribution for 18 months, open access supply to large consumers, leading the strategy on securitisation of Mumbai
business as PPAs come to an end in March 2018. He has also guided Transmission business to maintain and strengthen leadership
position by ensuring transmission licence for 25 years, remote operations of all grid stations, mobile maintenance, increased transmission
capacity and lean organisation and Mumbai’s first 400 KV grid station and 420 MVA capacity is in pipeline.
He has also led the efforts related to licence renewal of Mumbai distribution business by meticulous planning and execution,
thus overcoming adverse environment to get distribution license for 25 years. Under him, the customer base increased to 6.64 lakh
with a CAGR of 16%. Use of technology was accelerated and customer service is being steadily moved towards where customer will
get complete service on mobile, with the mobile application already launched.
The sustained and focused efforts on improving operational performance, building relationships with key stakeholders and
improving internal processes have led to achieving of financial performance goals. On a consolidated basis, Tata Power’s operating
profits (under IND-AS Accounting) from the existing assets, stood at ₹ 5,237 crore in FY17.
He has led the vision of making Tata Power the leader in power industry in respect of comprehensive O&M transformation
programme named ‘Param Sankalp’ that has been initiated in FY17. The program, apart from improved results in tangible bottom-line,
will also make the O&M function a ‘Great Place to Work’ enhancing the pride of employees.
He has actively led the regulatory and advocacy efforts together with the CEO and Managing Director to ensure operating
business units work with Government, Regulators, Customers and other key stakeholders to overcome challenges and hurdles. Further,
he has significantly contributed to key reforms / regulatory issues which would benefit the power sector like presentation to the
Parliamentary Committee members on Electricity Act, 2003 amendments and importance on Hydro Power; new environment norms
and its implementation philosophy and creating level playing field with OA supply traders or generators etc.
He has guided the setup of Tata Power Skill Development Institute (TPSDI) to empower youth with power skills and enhancing
their employability in the power sector. 4 training hubs at Shahad and Trombay in Maharashtra, Maithon in Jharkhand and Mundra
in Gujarat till date have been operationalised with few spoke centres. Vision is to have all skilled workmen working inside Tata Power
plants trained and certified by TPSDI. CBIP has recognised TPSDI as the best training institute for skill development in FY17.
He has also mentored the Safety function and led its transformation across through various aspects like creation of Contractor’s
Safety Code of Conduct, leading edge customised EHSM module (SAP), Mobile Safety application ‘Suraksha’ etc. He has also prepared
the digitalization blueprint and roadmap finalized for all functions and O&M Divisions and new compliance management framework
created to reinforce rigour into this vital aspect of ensuring compliance of legal provisions for uninterrupted business continuity.
The principal terms and conditions of Mr. Sethi’s appointment as COO and Executive Director (hereinafter referred to as
‘Mr. Sethi’ or the ‘COO and Executive Director’) and the main clauses of the agreement to be executed between the Company and
Mr. Sethi are as follows:
1.
1.1
1.2
Term and Termination:
From 1st April 2017 to 30th April 2019.
The Agreement may be terminated earlier, without any cause, by Mr. Sethi or the Company by giving six months’ notice of such
termination to the other party or the Company paying six months’ remuneration which shall be limited to provision of Salary,
Benefits, Perquisites, Allowances and any pro-rated Incentive Remuneration (paid at the discretion of the Board), in lieu of such
notice.
16 I Notice
The Tata Power Company Limited 2.
2.1
2.2
2.3
2.4
3.
3.1
Duties and Powers:
The COO and Executive Director shall devote his whole time and attention to the business of the Company and perform such
duties as may be entrusted to him by the Board from time to time and separately communicated to him and exercise such
powers as may be assigned to him, subject to the superintendence, control and directions of the Board in connection with
and in the best interests of the business of the Company and the business of one or more of its associated companies and/or
subsidiaries, including performing duties as assigned to the COO and Executive Director from time to time by serving on the
boards of such associated companies and/or subsidiaries or any other executive body or any committee of such a company.
The COO and Executive Director shall not exceed the powers so delegated by the Board pursuant to clause 2.1 above.
The COO and Executive Director undertakes to employ the best of his skill and ability and to make his utmost endeavours to
promote the interests and welfare of the Company and to conform to and comply with the policies and regulations of the
Company and all such orders and directions as may be given to him from time to time by the Board.
Mr. Sethi shall undertake his duties from such location as may be directed by the Board.
Remuneration:
So long as the COO and Executive Director performs his duties and conforms to the terms and conditions contained in the
Agreement, he shall, subject to such approvals as may be required, be entitled to the following remuneration subject to
deduction at source of all applicable taxes in accordance with the laws for the time being in force.
a)
Salary : Basic Salary ₹ 5,50,000 per month; upto a maximum of ₹ 7,00,000 per month, with authority to the Board to fix
his salary within the said maximum amount from time to time. The annual increments which will be effective 1st April
each year, will be decided by the Board based on recommendation of the NRC and will be merit-based and take into
account the Company’s performance as well.
b)
Benefits, Perquisites, Allowances
In addition to the Salary referred to in (a) above, the COO and Executive Director shall be entitled to:
A.
Rent-free residential accommodation (furnished or otherwise) the Company bearing the cost of repairs,
maintenance, society charges and utilities (e.g. gas, electricity and water charges) for the said accommodation.
OR
House Rent, House Maintenance and Utility Allowances aggregating 85% of the Salary (in case no accommodation
is provided by the Company).
Hospitalisation and major medical expenses, Car facility, Telecommunication facility and Housing loan facility
as per the Rules of the Company.
Other perquisites and allowances given below subject to a maximum of 55% of the Annual Salary; this shall
include:
a)
b)
c)
d)
e)
Medical Allowance
Leave Travel Concession/Allowance
Other Allowances
Personal Accident Insurance ) @ actuals
Club Membership fees ) subject to a cap of
8.33%
8.33%
33.34%
50.00%
5.00%
55.00%
Contribution to Provident Fund, Superannuation Fund or Annuity Fund and Gratuity Fund as per the Rules of
the Company.
The COO and Executive Director shall be entitled to leave in accordance with the Rules of the Company. Annual
Leave not availed by the COO and Executive Director is encashable in accordance with the Rules of the Company.
B.
C.
D.
E.
c)
Commission: In addition to Salary, Benefits, Perquisites, Allowances the COO and Executive Director would be paid
such remuneration by way of Commission, calculated with reference to the net profits of the Company in a particular
financial year, as may be determined by the Board, subject to the overall ceilings stipulated in Section 197 of the Act.
The specific amount payable to the COO and Executive Director will be based on his performance as evaluated by
the Board or the NRC and approved by the Board and will be payable annually after the annual accounts have been
approved by the Board.
Notice I 17
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
d)
Incentive Remuneration: Such incentive remuneration not exceeding 200% of salary to be paid at the discretion of the
Board annually, based on certain performance criteria and such other parameters as may be considered appropriate
from time to time.
An indicative list of factors that may be considered for determination of the extent of Commission / Incentive Remuneration
by the Board (as recommended by the NRC) are:
•
•
•
The Company’s performance on certain defined qualitative and quantitative parameters, as may be decided by the
Board from time to time.
Industry benchmarks of remuneration.
Performance of the individual.
Minimum Remuneration: Notwithstanding anything to the contrary herein contained, where in any financial year during the
currency of the tenure of the COO and Executive Director, the Company has no profits or its profits are inadequate, the Company
will pay to the COO and Executive Director remuneration by way of Salary, Benefits, Perquisites and Allowances and Incentive
Remuneration as specified above.
Insurance: The Company will take an appropriate Directors’ and Officers’ Liability Insurance policy and pay the premiums for
the same. It is intended to maintain such insurance cover for the entire Term, subject to the terms of such policy in force from
time to time.
The terms and conditions of the appointment of the COO and Executive Director and/or the Agreement may be altered and
varied from time to time by the Board as it may, in its discretion deem fit, irrespective of the limits stipulated under Schedule
V to the Act or any amendments made hereafter in this regard in such manner as may be agreed to between the Board and
the COO and Executive Director, subject to such approvals as may be required.
The COO and Executive Director, so long as he functions as such, undertakes not to become interested or otherwise concerned,
directly or through his spouse and/or children, in any selling agency of the Company.
All Personnel Policies of the Company and the related Rules which are applicable to other employees of the Company shall
also be applicable to the COO and Executive Director, unless specifically provided otherwise.
The employment of the COO and Executive Director may be terminated by the Company without notice or payment in lieu of
notice:
a.
b.
c.
if the COO and Executive Director is found guilty of any gross negligence, default or misconduct in connection with
or affecting the business of the Company or any subsidiary or associated company to which he is required by the
Agreement to render services; or
in the event of any serious or repeated or continuing breach (after prior warning) or non-observance by the COO and
Executive Director of any of the stipulations contained in the Agreement; or
in the event the Board expresses its loss of confidence in the COO and Executive Director.
In the event the COO and Executive Director is not in a position to discharge his official duties due to any physical or mental
incapacity, the Board shall be entitled to terminate his contract on such terms as the Board may consider appropriate in the
circumstances.
3.2
3.3
4.
5.
6.
7.
8.
9.
Upon the termination by whatever means of his employment under the Agreement:
a.
b.
the COO and Executive Director shall immediately cease to hold offices held by him in any holding company, subsidiaries
or associate companies without claim for compensation for loss of office by virtue of Section 167(1)(h) of the Act and
shall resign as trustee of any trusts connected with the Company;
the COO and Executive Director shall not without the consent of the Board at any time thereafter represent himself as
connected with the Company or any of its subsidiaries and associated companies.
10.
If and when the Agreement expires or is terminated for any reason whatsoever, Mr. Sethi will cease to be the COO and Executive
Director and also cease to be a Director of the Company. If at any time, the COO and Executive Director ceases to be a Director
of the Company for any reason whatsoever, he shall cease to be the COO and Executive Director and the Agreement shall
forthwith terminate. If at any time, the COO and Executive Director ceases to be in the employment of the Company for any
reason whatsoever, he shall cease to be a Director and COO and Executive Director of the Company.
11.
The terms and conditions of the appointment of the COO and Executive Director also include clauses pertaining to adherence
with the Tata Code of Conduct, Intellectual Property, maintenance of confidentiality, non-competition and non-solicitation.
18 I Notice
The Tata Power Company Limited
12.
Remuneration paid/payable to the COO and Executive Director for FY17 is commensurate with industry standards and Board
level positions held in similar sized companies, taking into consideration the individual responsibilities shouldered by them.
The table below illustrates the comparative data:
Benchmark Position
No. of Observations from Market
COO
10 companies
P10
2.38
P25
2.74
P50
3.66
P75
5.17
P90
8.30
Market - CTC with Long term initiatives
(Amount in ₹ crore)
Note:
i)
ii)
iii)
Based on AON Hewitt - Executive Director Market Pricing Report.
Market data is for companies with revenue size between ₹ 20,000 crore to ₹ 60,000 crore.
CTC includes Basic Salary, Benefits, Perquisites and Allowances and Annual Incentives / Commission paid.
The remuneration of Mr. Sethi for FY17 was ₹ 3.16 crore.
The Company is a player across the value chain of power business allowing it to capitalise on market opportunities in all
segments. The key target areas for the Company at this point of time is for scaling up of generation capacity with a focus on renewables
and value added businesses. The Directors are of the view that the appointment of Mr. Sethi as COO and Executive Director will be
beneficial to the functioning and future growth opportunities of the Company and the remuneration payable to him is commensurate
with his abilities and experience and, accordingly, commend the Resolution at Item No. 12 of the accompanying Notice for approval
by the members of the Company.
In compliance with the provisions of Sections 196, 197, 203 and other applicable provisions of the Act, read with Schedule V
to the Act, the terms of remuneration specified above are now being placed before the members for their approval.
Other than Mr. Sethi, none of the Directors or KMP of the Company or their respective relatives are concerned or interested in
the Resolution at Item No.12 of the accompanying Notice.
Mr. Sethi is not related to any other Director or KMP of the Company.
Item No.13: At the AGM held on 21st September 2016, the members of the Company had approved of the appointment and
terms of remuneration of Mr. Anil Sardana as CEO and Managing Director of the Company for a period of 5 years from 1st February
2016, including inter alia salary upto a maximum of ₹ 9,50,000 per month, with authority to the Board to fix his salary within the above
mentioned scale.
Taking into consideration the increased business activities of the Company and the responsibilities cast on Mr. Sardana, on
the recommendation of the NRC, the Board, at its meeting held on 19th May 2017, has revised the maximum basic salary payable to
Mr. Sardana to ₹ 14,00,000 per month with effect from 1st April 2018 for the remainder of his term upto 31st January 2021, with
proportionate increase in the benefits related to his salary, subject to the approval of the members of the Company. All other terms and
conditions of appointment of Mr. Sardana as CEO and Managing Director of the Company, as approved at the AGM of the Company
held on 21st September 2016, remain unchanged.
The aggregate of the remuneration as aforesaid shall be within the maximum limits as laid down under Section 197 and all
other applicable provisions, if any, of the Act read with Schedule V to the Act, as amended and as in force from time to time.
In compliance with the provisions of Sections 196, 197 and other applicable provisions of the Act, read with Schedule V to the
Act, the revised terms of remuneration specified above are now being placed before the members for their approval.
The Directors are of the view that the remuneration payable to Mr. Sardana as CEO and Managing Director is commensurate
with his abilities and experience and, accordingly, commend the Resolution at Item No.13 of the accompanying Notice for approval
by the members of the Company.
Other than Mr. Sardana, none of the Directors or KMP of the Company or their respective relatives are concerned or interested
in the Resolution at Item No.13 of the accompanying Notice.
Mr. Sardana is not related to any other Director or KMP of the Company.
Item No.14: As per Section 42 of the Act, read with the Rules framed thereunder, a company offering or making an invitation
to subscribe to Non-Convertible Debentures/Bonds (NCDs) on a private placement basis, is required to obtain the prior approval of
the members by way of a Special Resolution. Such an approval can be obtained once a year for all the offers and invitations made for
such NCDs during the year.
Notice I 19
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
The total borrowings of the Company as on 31st March 2017 are approx. ₹ 14,112 crore. The Company estimates to borrow
around ` 1,750 crore till August 2018 to finance its capex requirements and also raise debt for its subsidiaries till August 2018 as per
its Annual Business Plan. Furthermore, the Company is looking at an amount of approx. ₹ 5,250 crore for refinancing the NCDs taken
for the Welspun acquisition, for refinancing certain NCDs taken by the Company, for refinancing the Euro notes maturing in FY 2018
and for certain long term repayments.
Among the various options for raising such funds, the Company may need to raise funds by way of NCDs of upto ` 7,000 crore
to meet these requirements from August 2017 till August 2018.
The approval of the members is being sought by way of a Special Resolution under Sections 42 and 71 of the Act, read with
the Rules made thereunder, to enable the Company to offer or invite subscriptions of NCDs on a private placement basis, in one or
more tranches, during the period of one year from the date of passing of the Resolution at Item No.14, within the overall borrowing
limits of the Company, as approved by the members from time to time.
The Board commends the Resolution at Item No.14 of the accompanying Notice for approval by the members of the Company.
None of the Directors or KMP of the Company or their respective relatives are concerned or interested in the Resolution at
Item No.14 of the accompanying Notice.
Item Nos.15 and 16: The existing Authorised Share Capital of the Company is ₹ 529 crore divided into 300,00,00,000 Equity
Shares of ₹ 1 each and 2,29,00,000 Cumulative Redeemable Preference Shares of ₹ 100 each and the paid-up equity share capital is
₹ 270.50 crore divided into 270,47,73,510 Equity Shares of ₹ 1 each. The Company is looking at ways to reduce the leverage on its
Balance Sheet and may consider evaluating options including raising of further equity. The Company would need equity funding
for the various growth projects of the Company and for infusion in certain subsidiaries in the next 3 to 5 years. In case the Company
wishes to explore the option to raise further capital, then the existing Authorised Share Capital of ₹ 300 crore for Equity Shares may
not be adequate and, therefore, it is proposed to increase the Authorised Share Capital to ` 579 crore divided into 350,00,00,000 Equity
Shares of ` 1 each and 2,29,00,000 Cumulative Redeemable Preference Shares of ` 100 each by creation of 50,00,00,000 Equity Shares
of face value of ` 1 each.
As a consequence, the Capital Clause of the Memorandum of Association of the Company is required to be altered appropriately.
The approval of the members is sought in terms of Sections 13, 61 and other applicable provisions, if any, of the Act, to increase the
Authorised Share Capital as well as to alter the Capital Clause of the Memorandum of Association of the Company.
A modified copy of the Memorandum of Association is available for inspection by the members of the Company at its Registered
Office and a copy of the same is also available at the Corporate Office of the Company at 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009 during normal business hours on any working day of the Company.
The Board commends the Resolutions at Item Nos.15 and 16 of the accompanying Notice for approval by the members of the
Company.
None of the Directors or KMP of the Company or their respective relatives are concerned or interested in the Resolutions at
Item Nos.15 and 16 of the accompanying Notice.
Item No.17: As members are aware, the Company is undertaking several projects/contracts in India as well as outside India
mainly for the erection, operation and maintenance of power generation and distribution facilities. To enable the Directors to appoint
Branch Auditors for the purpose of auditing the accounts of the Company’s Branch Offices outside India (whether now existing or as
may be established), the necessary authorisation of the members is being obtained in accordance with the provisions of Section 143
of the Act, in terms of the Resolution at Item No.17 of the accompanying Notice.
The Board commends the Resolution at Item No.17 of the accompanying Notice for approval by the members of the Company.
None of the Directors or KMP of the Company or their respective relatives are concerned or interested in the Resolution at
Item No.17 of the accompanying Notice.
Item No.18: Pursuant to Section 148 of the Act, the Company is required to have the audit of its cost records conducted by a
cost accountant in practice. On the recommendation of the Audit Committee of Directors, the Board of Directors has approved the
re-appointment of M/s. Sanjay Gupta and Associates (SGA) as the Cost Auditors of the Company to conduct audit of cost records
maintained by the Company for the Financial Year 2017-18, at a remuneration of ` 6,50,000 plus Service tax and actual out-of-pocket
expenses.
SGA have furnished a certificate regarding their eligibility for appointment as Cost Auditors of the Company. They have vast
experience in the field of cost audit and have conducted the audit of the cost records of the Company for the previous year under the
provisions of the Act.
20 I Notice
The Tata Power Company Limited The Board commends the Resolution at Item No.18 of the accompanying Notice for ratification of the Cost Auditors’ remuneration
by the members of the Company.
None of the Directors or KMP of the Company or their respective relatives are concerned or interested in the Resolution at
Item No.18 of the accompanying Notice.
By Order of the Board of Directors,
H. M. Mistry
Company Secretary
FCS No.: 3606
Mumbai, 19th May 2017
Registered Office:
Bombay House,
24, Homi Mody Street,
Mumbai 400 001.
CIN: L28920MH1919PLC000567
Tel: 91 22 6665 8282 Fax: 91 22 6665 8801
E-mail: tatapower@tatapower.com
Website: www.tatapower.com
Notice I 21
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Details of the Directors seeking re-appointment/appointment at the forthcoming Annual General Meeting
(In pursuance of Regulations 26(4) and 36(3) of the Listing Regulations and Secretarial Standard - 2 on General Meetings)
Name of Director
Ms. Sandhya S. Kudtarkar
Mr. N. Chandrasekaran
Date of Birth (Age)
9th April 1958 (59 years)
2nd June 1963 (53 years)
Date of
Appointment
Expertise in specific
functional areas
16th April 2016
11th February 2017
Ms. Kudtarkar is a Commerce
g r a d u a t e , C h a r t e r e d
Accountant and Company
Secretar y and has been
with the Tata Group since
March 1982. Having held
various positions in the
Secretarial function with
Tata Steel Limited, she was
the Company Secretary of
Tata Steel from June 1994
till October 2001. Thereafter,
she moved to the Group
Legal Department and is
presently Sr. Vice President -
Legal Services of Tata Services
Limited.
She is a director of various
Tata companies including
Tata International Limited,
Panatone Finvest Limited
and TS Investments Limited.
She is a member of the Law
Review and Rationalisation
Co m m i t t e e o f t h e I M C
Chamber of Commerce and
Industry.
Mr. Chandrasekaran is the Executive
Chairman of Tata Sons Limited, having
been appointed as a director on its board
on 25th October 2016. He was the Chief
Executive Officer and Managing Director
of Tata Consultancy Services Limited
(TCS), a leading global IT solution and
consulting firm, a position he held since
2009 till February 2017.
He joined TCS in 1987 and under
his leadership, TCS has become the
largest private sector employer in India
with the highest retention rate in a
globally competitive industry. Under Mr.
Chandrasekaran’s leadership, TCS was
rated as the world’s most powerful brand
in IT services in 2015 and recognised
as a Global Top Employer by the Top
Employers Institute across 24 countries.
He was also appointed as a director on
the board of the Reserve Bank of India in
2016. He has served as the chairperson of
IT Industry Governors at the WEF, Davos,
in 2015-16. He has been playing an active
role in the Indo-US and India-UK CEO
Forums. He is also part of India’s business
taskforces for Australia, Brazil, Canada,
China, Japan and Malaysia. He served as
the Chairman of Nasscom, the apex trade
body for IT services firms, in India in 2012-
13 and continues to be a member of its
governing executive council.
Qualifications
C o m m e r c e g r a d u a t e ,
Chartered Accountant and
Company Secretary.
Master’s in computer applications from
Regional Engineering College, Trichy,
Tamil Nadu.
Directorships held
in other companies
(excluding foreign
companies)
• TS Investments Ltd.
• Tata International Ltd.
• Universal Comfort
Products Ltd.
• Panatone Finvest Ltd.
Indian Rotorcraft Ltd.
•
• Rohini Industrial
Electricals Limited
• Tata Sons Ltd.
• Tata Consultancy Services Ltd.
• Tata Steel Ltd.
• Tata Motors Ltd.
• The Indian Hotels Co. Ltd.
• TCS Foundation
• Reserve Bank of India
22 I Notice
Mr. S. Padmanabhan
15th May 1958 (59 years)
16th December 2016
Mr. Padmanabhan is currently the Head of Group
Human Resources for Tata Sons and Executive
Chairman, Tata Business Excellence Group
(TBExG). In his role as Head of Group Human
Resources, he is responsible for enabling key
HR policies and initiatives across the Tata Group
globally. As Executive Chairman of TBExG,
Mr. Padmanabhan is responsible for enabling
the Business Excellence journey across the Tata
group of companies globally. This role, which he
took on in 2014, is integral to Group initiatives in
enhancing the performance of Tata companies
through diagnostics, benchmarking and sharing
best practices.
His career with the Tata Group companies began
with TCS in 1982 and spans over 34 years. During
his 26 year stint in TCS, he has held roles such as
Executive Director of Human Resources, Head
of Application Development and Maintenance,
Head of Airlines Practice and Country Manager,
TCS Switzerland. He was also the CEO of
Aviation Software Development Consultancy,
a Joint Venture between TCS and Singapore
Airlines. As the Executive Director of HR at TCS,
Mr. Padmanabhan was responsible for managing
over 1,00,000 employees worldwide. During his
tenure, TCS achieved the highest retention rates.
Mr. Padmanabhan also played a pivotal role in
overseeing the USD 1Bn. TCS IPO – the largest in
the country till then.
Mr. Padmanabhan was also the Executive
Director-Operations of the Company from
6th February 2008 to 30th June 2014, and was
responsible for the profitable and sustainable
operations of all thermal and hydro generation
plants across India and transmission and
distribution systems in Mumbai.
Gold Medallist in Electronics and Communication
Engineering from PSG College of Technology,
Coimbatore, Glaxo gold medallist for marketing
stream from IIM, Bangalore, Advanced
Management Program at the Harvard Business
School.
• Tata Chemicals Ltd.
•
Infiniti Retail Ltd.
• Tata Consulting Engineers Ltd.
• The Associated Building Co. Ltd.
• Ecofirst Service Ltd.
The Tata Power Company Limited Name of Director
Ms. Sandhya S. Kudtarkar
Mr. N. Chandrasekaran
Mr. S. Padmanabhan
Committee position
held in other
companies
Audit Committee
Member
• Panatone Finvest Ltd.
Indian Rotorcraft Ltd.
•
Nomination and
Remuneration Committee
Member
• Panatone Finvest Ltd.
Indian Rotorcraft Ltd.
•
Corporate Social
Responsibility Committee
Member
• TS Investments Ltd.
Remuneration
No. of meetings of
the Board attended
during the year
No. of shares held:
(a) Own
(b) For other
persons on a
beneficial basis
N.A.
8
Nil
Nil
Nomination and Remuneration
Committee
Member
• Tata Sons Ltd.
• Tata Consultancy Services Ltd.
• Tata Motors Ltd.
• The Indian Hotels Co. Ltd.
Corporate Social Responsibility
Committee
Chairman
• Tata Consultancy Services Ltd.
Risk Management Committee
Member
• Tata Consultancy Services Ltd.
Executive Committee
Chairman
• Tata Consultancy Services Ltd.
• Tata Steel Ltd.
• Tata Motors Ltd.
Finance Committee
Chairman
• Tata Steel Ltd.
Special Committee
Member
• Tata Sons Ltd.
Human Resource Management Sub-
committee
Member
• Reserve Bank of India
N.A.
Nil
Nil
Nil
Audit Committee
Member
• Tata Chemicals Ltd.
• Tata Consulting Engineers Ltd.
Nomination and Remuneration Committee
Member
•
• Tata Consulting Engineers Ltd.
Infiniti Retail Ltd.
Stakeholders Relationship Committee
Member
• Tata Chemicals Ltd.
Corporate Social Responsibility Committee
Member
• Tata Consultancy Engineers Ltd.
Risk Management Committee
Member
• Tata Chemicals Ltd.
• Tata Consulting Engineers Ltd.
CSR, Safety and Sustainability Committee
Chairman
• Tata Chemicals Ltd.
Committee of the Board
Member
•
Infiniti Retail Ltd.
N.A.
2
Nil
Nil
Notice I 23
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Name of Director
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Date of Birth (Age)
25th February 1971 (46 years)
5th May 1968 (49 years)
26th March 1968 (49 years)
Date of
Appointment
Expertise in specific
functional areas
14th October 2016
14th October 2016
14th October 2016
Mr. Bhandarkar is the former Managing
Director of Rothschild’s Investment
Banking operations in India and continues
to be a part time Senior Advisor to
Rothschild.
During his career with Rothschild, he
advised on a variety of corporate finance
transactions across M&A, Capital Markets
and Debt Restructuring.
A few notable deals include; advised
Vodafone on their IPO preparations and
on bidding in the 2G Spectrum auctions;
advised Aircel on the sale of its towers
business to GTL; advised Suzlon on its
debt restructuring discussions with
international lenders; advised the GVK-
South African consortium on its bid for
Mumbai airport privatisation; advised
Cairn Plc on the sale of its interest in
Cairn India; advised Cairn Plc on the IPO
of Cairn India.
Prior to Rothschild, he has also worked
with Peregrine Capital and ICICI Securities
and Finance Company Limited. He has over
two decades of experience in Investment
banking.
Ms. Bansal is the former Global Partner and
Managing Director with TPG Private Equity
and a strategy consultant with McKinsey
and Company in New York and Mumbai.
She founded and ran Spencer Stuart’s India
practice successfully growing it to a highly
reputed pan-India platform. She was also a
global partner and co-led their Asia Pacific
Board and CEO practice as part of the Asia
Pacific leadership team. She started her
career as an engineer.
Ms. Padalkar is Executive Director
and Chief Financial Officer at
HDFC Standard Life Insurance
Company Limited (HDFC Life).
Post joining the company in
August 2008, she has been leading
the Finance, Internal Audit,
Compliance, Risk Management,
Legal and Secretarial teams, and
also has oversight of the Pension
subsidiary company.
She serves as an Independent Non-
Executive Director on the public boards of
GlaxoSmithKline Pharmaceuticals Limited,
Bata India Limited and Voltas Limited. She
is on the Advisory Board of the Columbia
University Global Centers, South Asia.
Prior to joining HDFC Life,
Ms. Padalkar has had diverse
experience in varied sectors,
ranging from Outsourcing (WNS
Global Services) to FMCG (Colgate
Palmolive).
She is an enthusiastic participant in the
entrepreneurial ecosystem, is charter
member of TiE, angel investor and mentor
to young entrepreneurs and companies
including the SAHA Fund, Female Founders
Fund and others.
Ms. Bansal is deeply committed to social
enterprise and is an advisor to SEWA.
Previously, she chaired the India board of
Women’s World Banking, a leading global
livelihood-promoting institution and was
an advisor to Grameen Foundation.
An active contributor to the dialogue
corporate governance and diversity, she
co-founded and chaired the FICCI Center
for Corporate Governance program for
Women on Corporate Boards. She serves
on the managing committee of the Bombay
Chamber of Commerce and Industry
and is part of the CII Directors Guild. She
is a member of the Young Presidents’
Organization.
Qualifications
B.E. (Computer Engineering), Gujarat
University, M.A. International Finance &
Business, Columbia University
Member of the Institute of
Chartered Accountants in England
and Wales.
Degree in Management from XLRI,
Jamshedpur.
Directorships held
in other companies
(excluding foreign
companies)
• GlaxoSmithKline Pharmaceuticals Ltd.
• Bata India Ltd.
• Voltas Ltd.
• Bombay Chamber of Commerce &
Industry
Member of the Institute of
Chartered Accountants in India
• HDFC Standard Life Insurance
Co. Ltd.
• HDFC Pension Management
Co. Ltd.
• HDFC Investments Ltd.
• Newage Power Co. Pvt. Ltd.
• S. Chand & Co. Ltd.
• Chhaya Prakashani Pvt. Ltd.
• Welspun Renewables Energy Pvt. Ltd.
• Tata Power Renewable Energy Ltd.
24 I Notice
The Tata Power Company Limited Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Name of Director
Committee
position held in
other companies
Audit Committee
Member
• Bata India Ltd.
Nomination and Remuneration
Committee
Chairperson
• Bata India Limited
Member
• GlaxoSmithKline Pharmaceuticals
Ltd.
• Voltas Ltd.
Corporate Social Responsibility
Committee
Member
• GlaxoSmithKline Pharmaceuticals
Ltd.
Remuneration
No. of meetings
of the Board
attended during
the year
No. of shares held:
(a) Own
(b) For other
persons on a
beneficial basis
N.A.
4
Nil
Nil
Audit Committee
Chairperson
• HDFC Investments Ltd.
Nomination and Remuneration
Committee
Member
• HDFC Investments Ltd.
Corporate Social
Responsibility Committee
Member
• HDFC Standard Life
Insurance Co. Ltd.
Risk Management Committee
Member
• HDFC Standard Life
Insurance Co. Ltd.
• HDFC Pension Management
Co. Ltd.
Investment Committee
Member
• HDFC Standard Life
Insurance Co. Ltd.
• HDFC Pension Management
Co. Ltd..
Policy Holder Protection
Committee
Member
• HDFC Standard Life
Insurance Co. Ltd.
N.A.
4
Nil
Nil
Audit Committee
Chairman
• Chhaya Prakashani Pvt. Ltd.
Member
• Welspun Renewables Energy Pvt.
Ltd.
• Tata Power Renewable Energy Ltd.
Nomination and Remuneration
Committee
Member
• Chhaya Prakashani Pvt. Ltd.
• Welspun Renewables Energy Pvt.
Ltd.
• Tata Power Renewable Energy Ltd.
Corporate Social Responsibility
Committee
Member
• Tata Power Renewable Energy Ltd.
Finance Committee
Member
• Welspun Renewables Energy Pvt.
Ltd.
N.A.
4
16,262
Nil
Notice I 25
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Name of Director
Date of Birth (Age)
Date of Appointment
Mr. K. M. Chandrasekhar
20th February 1948 (69 years)
4th May 2017
Expertise in specific functional
areas
Mr. Chandrasekhar is a retired Civil Servant and was the 29th Cabinet Secretary
of the Republic of India.
He spent the first 25 years of his career in Kerala, holding such positions as
Managing Director of the State Civil Supplies Corporation; District Collector,
Idukki; Director of Fisheries; Principal Secretary (Industries) and Principal
Secretary (Finance). During this period, he was also Chairman of the Spices
Board under the Ministry of Commerce, Government of India.
In 1996, he left Kerala on Central Government deputation. During his 15 years
tenure with the Government of India, from 1996 to 2011, he was Joint Secretary
in the key Trade Policy Division of the Ministry of Commerce, Deputy Chief of
Mission in the Embassy of India, Brussels and the Ambassador and Permanent
Representative of India in the World Trade Organization in Geneva. He rose to
the position of Union Cabinet Secretary. As Cabinet Secretary, he was Head
of all the Civil Services in India and reported directly to the Prime Minister. He
retained that position for four years. He retired from Government service in
2011 at the age of 63, having served the Government for 41 years.
Post retirement, he was, for 5 years, Vice-Chairman, Kerala State Planning
Board with rank of Cabinet Minister of the State.
Mr. Chandrasekhar has considerable management experience having
been associated as Chairman, Managing Director or member of the Board
of Directors of more than 40 companies in the public, joint and private
sector. He has written several articles and presented papers. He has also
been consultant to the Commonwealth Secretariat and to the UN Food and
Agriculture Organization.
Indian Administrative Service in 1970.
B.A. (Honours) in Economics and M.A. in History from St. Stephen’s College,
University of Delhi.
M.A. in Management Studies from the University of Leeds in United Kingdom.
• The Federal Bank Ltd.
Nomination, Remuneration and Ethics Committee
Member
• The Federal Bank Ltd.
Corporate Social Responsibility Committee
Member
• The Federal Bank Ltd.
Credit Committee
Member
• The Federal Bank Ltd.
Marketing and Customer Service Committee
Member
• The Federal Bank Ltd.
N.A.
N.A.
Nil
Nil
Qualifications
Directorships held in other
companies (excluding foreign
companies)
Committee position held in
other companies
Remuneration
No. of meetings of the Board
attended during the year
No. of shares held:
(a) Own
(b) For other persons on a
beneficial basis
26 I Notice
Mr. Ashok S. Sethi
3rd April 1954 (63 years)
7th May 2014
M r. Sethi joined the Company on
1st August 1975 as a Graduate Engineer
Trainee. He has worked diligently for
the last about 41 years at Tata Power in
different roles and has got exposure to all
aspects of the business such as Thermal
and Hydro Generation, Transmission and
Distribution, Commercial and Regulatory
and Advocacy. This varied experience
over such long period has resulted into
a wide and deep understanding of the
levers of business. This enables him to drive
operational excellence across the breadth
of responsibilities.
B.Tech from IIT, Kharagpur
• Tata Power Trading Co. Ltd.
•
• Maithon Power Ltd.
Industrial Energy Ltd.
Nomination and Remuneration
Committee
Member
• Tata Power Trading Co. Ltd.
•
Industrial Energy Ltd.
Corporate Social Responsibility
Committee
Chairman
• Tata Power Trading Co. Ltd.
Member
• Maithon Power Ltd.
Executive Committee of the Board
Member
• Maithon Power Ltd.
As mentioned in the Explanatory Statement
to the Notice dated 19th May 2017.
9
20,600
Nil
The Tata Power Company Limited BOARD’S REPORT
Solar PV Plant, Mithapur, Gujarat
BOARD’S REPORT
To the Members,
The Directors are pleased to present to you the Ninety-Eighth Annual Report on the business and operations of your Company and
the Statements of Account for the year ended 31st March 2017.
1.
FINANCIAL RESULTS
Consolidated
Standalone
Figures in ` crore (Table 1)
(a)
(b)
(c)
(d)
(e)
(f )
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
Net Sales / Income from Other Operations*
(Less) Operating Expenditure
Operating Profit
(Less) Add: Forex (Loss) Gain
Add: Other Income
(Less): Finance Cost
Profit before Depreciation and Tax
(Less): Depreciation / Amortisation / Impairment
Profit Before Exceptional Item
(Less): Exceptional Item
Profit (Loss) before Tax
(Less) Add: Tax Expenses or Credit
Net Profit (Loss) after Tax
Add: Share of Profit of Associates and Joint Ventures
Net Profit for the year
Attributable to -
- Owners of the Company
- Non-controlling interests
Other Comprehensive income (Net of Tax)
Total Comprehensive Income
Attributable to -
- Owners of the Company
- Non-controlling interests
FY17
27,288
FY16
28,526
(22,051)
(22,354)
5,237
(383)
586
(3,114)
2,326
(1,989)
337
(651)
(314)
46
(268)
1,217
949
746
203
(133)
816
613
203
6,172
(663)
754
(3,236)
3,027
(1,649)
1,378
(98)
1,281
(681)
600
186
786
662
124
(23)
762
639
123
FY17
7,282
(5,109)
2,173
(78)
992
FY16
8,316
(5,737)
2,579
(57)
962
(1,296)
(1,146)
1,791
(634)
1,157
(651)
506
(223)
283
-
283
283
-
(121)
162
162
-
2,338
(604)
1,734
Nil
1,734
(379)
1,355
-
1,355
1,355
-
(258)
1,097
1,097
-
*Including rate regulatory income (expense)
Details regarding the changes due to the transition to IndAS are listed in Section 13 of this Board’s Report.
2.
FINANCIAL PERFORMANCE AND THE STATE OF THE COMPANY’S AFFAIRS
2.1.
CONSOLIDATED
On a Consolidated basis, the Operating Revenue was at ₹ 27,288 crore in FY17, compared to ₹ 28,526 crore in FY16. The decrease
was mainly due to lower fuel cost and power purchase cost being passed through for the regulated business.
The Consolidated Profit after Tax in FY17 was at ₹ 746 crore compared to ₹ 662 crore in the previous year mainly due to higher
contribution by the coal mines, renewables business and associates and lower foreign exchange losses, offset by loss towards
contractual obligation on account of purchase of shares in Tata Teleservices Limited (TTSL) from NTT DoCoMo Inc., Japan (Docomo).
(Refer Section 11 - Management Discussion and Analysis (MD&A) of this report for details)
28 I Board’s Report
The Tata Power Company Limited
2.2.
STANDALONE
On a Standalone basis, the Operating Revenue stood at ₹ 7,282 crore in FY17 compared to ₹ 8,316 crore in FY16. The decrease
was mainly due to lower fuel cost and power purchase cost being passed through for the regulated business.
The Profit after Tax in FY17 was at ₹ 283 crore as compared to ₹ 1,355 crore last year. This was mainly due to loss toward
contractual obligation on account of purchase of shares in TTSL form Docomo along with the increase in finance cost softened
by the impact of favourable regulatory orders in the previous year.
The Earnings per Share (Basic and Diluted) in FY17 stood at ₹ 0.63.
(Refer Section 10 - MD&A of this report for details)
2.3.
EXCEPTIONAL ITEM
In 2008-09, Docomo acquired shares of TTSL from Tata Sons Limited (TSL) and other group companies including your Company.
In terms of the Agreements with Docomo, TSL, inter alia, agreed to provide various indemnities and a sale option entitling
Docomo to sell its entire shareholding at a minimum predetermined price per share if certain performance parameters were not
met by TTSL. Under the provisions of these agreements, your Company was obligated to purchase from Docomo, its holding
in TTSL in the proportion of shares sold by the Company to the total secondary sale by the group companies, as a part of the
process. The minimum pre-determined price represented 50% of the acquisition price of 2008-09.
Docomo exercised its sale option in July 2014 to sell its entire shareholding at the predetermined price. As the sum payable
amounted to a capital account transaction, under the Foreign Exchange Management Act (FEMA), permission of the Reserve
Bank of India (RBI) was required. RBI did not permit the acquisition of the shares at the predetermined price as the price was
higher than fair market value of the shares. The matter was taken up for arbitration at U.K. by Docomo and it received a favourable
award. The arbitration award had to be petitioned by TSL with Delhi High Court for implementation, due to RBI’s objection.
On 28th April 2017, the Delhi High Court, while deciding on the matter, allowed TSL to pay the amounts to Docomo as per
arbitration award for acquisition of the shares. This obligated your Company to purchase 11,82,22,767 shares. Consequently,
during the year your Company has deposited ` 790 crore with Delhi High Court through TSL towards its share of the award.
Based on the latest available valuation of TTSL shares, the Company has accounted for the loss of ` 651 crore towards contractual
obligation on account of purchase of shares in TTSL in the standalone and consolidated financial statements as an Exceptional
Item. Further, since your Company holds 17% stake in Tata Communications Limited, proportionate impact of its share in the
loss towards the said contractual obligation has been accounted in the share of profit/(loss) of associates and joint ventures
amounting to ` 146 crore.
2.4
ANNUAL PERFORMANCE
Details of the Company’s annual financial performance as published on the Company’s website and
presented during the Analyst Meet, after declaration of annual results can be accessed using the following
link: https://www.tatapower.com/pdf/investor-relations/analyst-presentation-may-17.pdf (scan the adjacent
QR code on any mobile device smart phone/ tablet to read the policy on the Company website. QR code
scanner app can be downloaded free of cost for Android/iOS/Windows devices from respective app stores)
3.
DIVIDEND
The Directors of your Company recommend a dividend of 130% (` 1.30 per share of ` 1 each), subject to the approval of the
Members.
According to Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the top 500 listed entities based on market capitalization (calculated as on 31st March
of every financial year) are required to formulate a dividend distribution policy which shall be disclosed in
their annual reports and on their websites. Accordingly, the Dividend Policy of the Company is provided
in Annexure-I.
The Dividend Policy of the Company has been provided in the following link: https://www.tatapower.com/
aboutus/dividend-policy.pdf (alternately, scan the adjacent QR code using a mobile device to read the policy
on the Company website).
4.
CURRENT BUSINESS
Your Company is present across the value chain of power business viz. Generation, Transmission, Distribution, Power Trading,
Power Services, Coal Mines and Logistics, Solar Photovoltaic (PV) manufacturing and associated Engineering, Procurement,
Construction (EPC) services. Apart from the above, your Company is present in defence electronics and applications.
Board’s Report I 29
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE As on date of the report, the Tata Power group of companies had an operational generation capacity of 10,463 MW based on
various fuel sources - thermal (coal, gas and oil), hydroelectric power, renewable energy (wind and solar PV) and waste heat
recovery.
The Company (including its subsidiaries) has nearly 30% of its capacity (in MW terms) in clean and green generation sources
(hydro, wind, solar and waste heat recovery), while the target is to maintain 30-40% of its total generation capacity to be from
non-fossil fuel based generation sources by 2025.
Details of generation businesses in operations
Fuel Source
Location
State
Mundra
Trombay
Maithon
Jojobera
Gujarat
Maharashtra
Jharkhand
Jharkhand
Jharkhand
Industrial Energy
Limited (IEL) –
Jojobera
PT Citra Kusuma
Perdana
TPDDL Rithala
(Gas Based)
IEL – Jamshedpur
IEL – Kalinganagar Odisha
New Delhi
Jharkhand
Indonesia
Haldia
Bhira
Khopoli
Bhivpuri
West Bengal
Maharashtra
Maharashtra
Maharashtra
Dagachhu
Bhutan
Itezhi Tezhi
Wind farms
Solar Photovoltaic
(PV)
Zambia
Maharashtra,
Gujarat,
Madhya
Pradesh,
Karnataka,
Tamil Nadu,
Rajasthan
and South
Africa
Maharashtra,
Gujarat,
Tamil Nadu
and Delhi
Thermal –
Coal / Oil / Gas
Thermal –
Waste Heat
Recovery
Hydro
Renewables
Total
Normative
capacity
under
management
(MW)
4,150
Returns/ Earnings Model
Long term PPA based on UMPP Bid
1,430
1,050
428
Long term PPA - regulated Return on Equity
Long term PPA - regulated Return on Equity
Long term PPA - regulated Return on Equity
and negotiated PPA
120
Bilaterally negotiated long term PPA
36
108
120
135
120
300
72
75
126
120
1140
Captive Arrangement
PPA is being pursued
Bilaterally negotiated long term PPA
Bilaterally negotiated long term PPA
Merchant sale (100 MW) and bilateral sale
to West Bengal (20 MW)
Long term PPA - regulated Return on Equity
PPA with Tata Power Trading Company
Limited (TPTCL)
Long term regulated return
Long term PPA based on Feed-in-tariff +
REC Mechanism
(includes 30 MW assets of Indo Rama
Renewables Jath Limited)
933
Long term PPA based on Feed-in tariff
(Table 2)
Category
Total
(MW)
7,322
375
693
2073
10,463
NOTE: Trombay Unit 4 - 150 MW has been scrapped during the year and the same has been removed from the total installed capacity.
30 I Board’s Report
The Tata Power Company Limited New Delhi
Regulated Return on
Equity
Details of other businesses
Business
Company/Entity
Location
Transmission
Tata Power
(TPC - T)
Mumbai
Powerlinks
Transmission
Limited (PTL)
Eastern/
Northern
regions
Tata Power
(TPC - D)
Mumbai
Distribution
Coal Investments
Tata Power Delhi
Distribution
Limited (TPDDL)
Coal and
Infrastructure
Solar PV
manufacturing,
EPC
Tata Power Solar
Systems Limited
(TPSSL)
Indonesia
Bengaluru
Power Trading
Tata Power
Trading Company
Limited
Across India
Shipping
Strategic
Engineering
Trust Energy
Resources Pte.
Limited
Tata Power
Strategic
Engineering
Division (SED)
Mumbai
Power Services
Tata Power
Mumbai
Returns/ Earnings Model
25 year license w.e.f
August 2015 - regulated
Return on Equity
Regulated Return on
Equity
25 year license w.e.f
August 2015 - regulated
Return on Equity
Returns based on
dynamics in international
thermal coal market
Returns based on sector
dynamics and market
competition
Returns based on market
dynamics in short term
and bilateral power market
subject to cap prescribed
by CERC
Returns based on sector
dynamics and market
competition
Returns based on sector
dynamics and market
competition
(Table 3)
Key details
Over 1,200 CKms. of transmission
lines, connecting generating stations
to 21 receiving stations.
1166 Kms. of 400 kV transmission
lines to evacuate power from
Eastern/North Eastern region to
Northern Region.
Over 4,300 Ckm of distribution
network. Around 6.75 lakh
consumers.
Approximately 15,000 Ckm of
distribution lines. Over 1.58 million
consumers.
Stake in Indonesian mines
Manufacturing and sale of solar PV
cells and modules and EPC services.
Category I power trading license,
which permits the company to trade
any amount of power.
Operates long term charters to meet
captive shipping requirements.
Vessels operated are cape size.
Amongst the Indian private sector,
SED is one of the leading suppliers
of systems integration for defence
equipment.
One of the leading service providers
of project management, O&M and
specialized services in the power
sector.
Singapore
Returns based on long
term charters
Percentage contribution of different business models
Model
Capacity (MW) % of overall capacity
Returns
Regulated returns
Regulated tariff mechanism
(Renewables)
Captive power plant
Merchant
MoU/ Bilateral
PPA or Bid driven/ Fixed Tariff
/ Case II
3275
2073
411
226
20
4458
31.3%
19.8%
3.9%
2.2%
0.2%
Fixed return on
equity
Fixed tariff + PLF
driven
PPA driven
(14-19%)
Market driven
PPA driven
42.6%
Bid driven
(Table 4)
Tata Power projects
Mumbai Operations (Trombay
& Hydro), Maithon, Jojobera
Unit #2 and #3, TPDDL Rithala
Wind, Solar
IEL (Unit 5, PH6, KPO), CKP
(Indonesia)
Haldia (100MW)
Dagachhu (126MW)
Haldia (20MW)
Jojobera Unit#1 and #4,
CGPL, ITPC (Zambia)
Board’s Report I 31
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 5.
SUBSIDIARIES/JOINT VENTURES/ASSOCIATES
As on 31st March 2017, the Company had 49 subsidiaries (38 are wholly-owned subsidiaries), 37 Joint Ventures (JVs) and 8
Associates. Of the erstwhile subsidiaries, 3 companies have been classified as Joint Ventures under Indian Accounting Standards
(Ind AS) and 1 of the investments has been classified as Associate.
Investments
• TTML(1) 7%
• TTSL(1) 8%
• Panatone 40%
• Tata Comm(1)* 17%
Power Business
• Trombay
• Hydro
• Jojobera
• Haldia
• CGPL (Mundra UMPP)
• Maithon
• IEL
• Dagachhu
• Georgia Hydro
• Wind Farms (TPC)
• TPREL
• WREPL (Welspun)
• TPSSL
• Mumbai (TPC-T)
• Powerlinks
• Mumbai (TPC-D)
• Delhi: TPDDL
• Jamshedpur : TPJDL
• Ajmer: TPADL
• Tata Power Trading
Generation
Renewables
Transmission
Distribution
Trading
Other Businesses
• SED
• Tata Projects 48%
Fuel & Logistics
• Indonesian Coal Mines – KPC, Arutmin(2)
• Indonesian Coal Mine – BSSR
• Trust Energy
• Eastern Energy (Owned by CGPL)
100 %
74 %
74 %
26 %
40 %
100 %
100 %
100 %
51 %
51 %
100 %
100 %
100 %
100 %
30 %
26 %
100 %
Division
Other SPVs
Investment
% stakes
Notes:
(1) TTML: Tata Teleservices (Maharashtra) Ltd, TTSL: Tata Teleservices, Tata Comm: Tata Communications Ltd
(2) On 28th November, 2016, Tata Power signed a revised agreement for the sale of its 30% interest in Arutmin and associated companies subject to
certain closing adjustments, certain conditions and restructuring
* Held directly and indirectly
During the year, the following changes occurred in your Company’s holding structure:
•
•
•
Subsidiaries: The Company, through its subsidiaries, incorporated Nelco Network Products Limited, Vagarai Windfarm
Limited and Chirasthayee Saurya Limited. Further, through its subsidiary Tata Power Renewable Energy Limited, it
acquired Welspun Renewables Energy Private Limited and its 19 operating subsidiaries. It also acquired the wind assets
of Indo Rama Renewables Jath Limited. Post acquisition of WREPL by TPREL, WREPL acquired one company (Welspun
Urja India Limited) and merged one of the19 subsidiaries (Solarsys Energy Private Limited).
Joint Ventures: The Company formed Resurgent Power Ventures Pte. Ltd. and LTH Milcom Private Limited as joint
ventures and divested OTP Geothermal Pte. Ltd., PT Sorik Marapi Geothermal Power and PT OTP Geothermal Services
Indonesia, during the year.
Associates: The Group also divested its holding in ASL Advanced Systems Private Limited.
Report on the performance and financial position of each of the subsidiaries, JVs and Associates has been
provided in Form AOC-1.
The policy for determining material subsidiaries of the Company has been provided in the following link:
https://www.tatapower.com/aboutus/pdf/dms-policy-15.pdf (alternately, scan the adjacent QR code using
a mobile device to read the policy on the Company website).
6.
RESERVES
The net movement in the various reserves (Standalone Accounts) of the Company for FY17 and the previous year are as follows:
Particulars
Capital Redemption Reserve
Capital Reserve
Securities Premium Account
Debenture Redemption Reserve
General Reserve
Retained Earnings
Investment Revaluation Reserve
32 I Board’s Report
Figures in ` crore (Table 5)
FY17
1.60
61.66
5,634.98
1,000.90
3,866.24
4,466.08
(253.40)
FY16
1.60
61.66
5,634.13
545.24
3,866.24
5,110.80
(139.69)
The Tata Power Company Limited
7.
FOREIGN EXCHANGE - EARNINGS AND OUTGO
Particulars – Standalone
Foreign Exchange Earnings
Foreign Exchange Outflow mainly on account of:
•
•
•
Fuel purchase
Interest on foreign currency borrowings, NRI dividends
Purchase of capital equipment, components and spares and other miscellaneous expenses
Figures in ` crore (Table 6)
FY17
340
1,263
971
42
250
FY16
200
1,283
935
41
307
8.
REGULATORY AND LEGAL MATTERS
The businesses of the Company are governed primarily by the Electricity Act, 2003 (EA, 2003) and associated regulations.
Mentioned below are the critical regulatory orders pertaining to the Company that were issued during FY17, none of which
impact the “going concern” status of your Company.
8.1. MUNDRA UMPP
8.1.1. COMPENSATORY TARIFF/ FORCE MAJEURE RELIEF
Coastal Gujarat Power Limited (CGPL) - Mundra UMPP had approached Central Electricity Regulatory Commission (CERC) for
evolving a mechanism for compensating CGPL for the adverse impact of the uncontrollable and unprecedented escalation in
the imported coal prices and the change in law in Indonesia. CERC had, after considering the recommendations of a Committee
appointed for the aforesaid purpose, vide its order dated 21st February 2014, decided that CGPL was entitled to compensatory
tariff from 1st April 2012 over and above the tariff agreed under the PPA with the Procurers, till the hardship on account of
Indonesian regulations persisted.
The Procurers challenged the order and filed an appeal with Appellate Tribunal for Electricity (APTEL). APTEL passed an interim
order dated 21st July 2014, directing the Procurers to pay a compensatory tariff from March 2014 onwards, although it stayed
the compensation for the prior period, till disposal of the appeal filed before it. On appeal by the Procurers, the interim order
of APTEL was set aside by the Supreme Court and APTEL was directed to hear and dispose off the appeals expeditiously.
On 7th April 2016, APTEL, while rejecting the grounds of change in law and use of regulatory powers, remanded the matter to
CERC to assess the compensation on grounds of Force Majeure (FM) as permissible under the PPA.
The Procurers, including a consumer group, filed a Civil Appeal before the Supreme Court challenging the FM relief provided
as per APTEL’s judgment. The Supreme Court directed that CERC may pass the Order on FM relief, but it was to be given effect
only with the prior permission of the Supreme Court.
Based on the remand by APTEL, matter was heard by CERC and order passed on 6th December 2016, prescribing the FM relief
mechanism.
Subsequently, the civil appeals filed by Procurers and consumer groups were heard before the Supreme Court. The Supreme
Court vide judgement dated 11th April 2017, disposed off the appeal with regard to compensatory tariff, inter alia holding that:
a)
b)
CGPL’s case does not fall under the FM clause in the PPA
The Change in Law as defined under PPA contemplates only change in domestic (Indian) laws
The Supreme Court has, however, upheld that the CERC has powers under Section 79(1) (b) of EA, 2003 to regulate, which
includes power to determine or adopt tariff even for tariff that is determined under competitive bidding route (Section 63).
While the Supreme Court held that the Regulatory Commission has the powers under Section 79 of EA, 2003, the judgement
did not specifically validate the applicability of said principle to the relief that had been granted by CERC to CGPL, earlier. Your
Company, therefore, is in consultation with its legal counsels for advice on the possible legal options and way forward.
The Company remains committed to operating and maintaining the 4,000 MW Mundra Ultra Mega Power Station which is
operating at benchmark operational parameters and is making a significant contribution in ensuring the energy security of
the country. While the Company continues to make efforts to seek additional tariff, it is pursuing all alternative options at CGPL
including sourcing of competitive coal from other relevant geographies as also use low grade and blended coal options to
contain the under-recovery at Mundra UMPP. Efforts are also in progress to optimally refinance debt and minimize the total
cost incurred on debt servicing. It may also be noted that the combined investments in the Indonesian coal mines along with
investment in coal logistics and CGPL, when considered together, provide a natural hedge towards future fluctuations in coal
prices. It may be noted that CGPL project cost does not include the investment made in the coal mines .
For the long-term sustainability of the power station, however, your Company is exploring all options to structure the investment
in a manner that it earns a reasonable return.
Board’s Report I 33
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 8.1.2. CHANGE IN LAW
A) CHANGE IN LAW - OPERATIONS
CGPL filed a Petition for its claim under Change in Law relevant to Indian provisions for the period FY12, FY13 and FY14 in June
2015 and CERC passed the order on 17th March 2017, which is consistent with the orders passed by CERC for other generators
seeking relief under change in law operations.
B) CHANGE IN LAW - CONSTRUCTION
Petition for claiming the impact of Change in Law - Construction has been filed before CERC in July 2016. The matter has been
admitted and is yet to be heard.
8.1.3. PETITION SEEKING IN-PRINCIPLE APPROVAL FOR CAPEX AND OPEX TO COMPLY WITH NEW ENVIRONMENT NORMS
The Ministry of Environment, Forest and Climate Change (MoEF&CC), vide its notification dated 7th December 2015, has revised
the environment emissions norms mandating all thermal power plants to comply with new/revised norms. Your Company had
filed a petition with CERC seeking in-principle approval for the capital expenditure in order to secure finance from the financial
institutions. Meanwhile, your Company is already in compliance with the new norms related to Suspended Particulate Matter
(SPM) etc. Though your Company was all prepared to move ahead and complete requirements on time, but for regulatory
delays, it is believed that implementations of the proposed regulations is likely to be postponed.
8.1.4. SUO-MOTU PETITION BY CERC ON DECLARATION OF COMMERCIAL OPERATION OF UNITS 20, 30, 40 & 50 OF MUNDRA
UMPP
Based on representations made by an individual before Ministry of Corporate Affairs and Securities and Exchange Board of
India (SEBI) on the issue of declaration of commercial operations dates for Units 20, 30, 40 and 50 of Mundra UMPP, the matter
was referred to CERC and a suo-motu petition has been initiated in the matter. When the matter was listed and heard before
CERC on maintainability on 24th May 2016, issues on locus standi of the individual and jurisdiction of CERC were raised by
the Company. The matter has been heard by CERC and order reserved on the issue of maintainability of the proceedings. In
December 2016, Energy Watchdog has filed an intervention application before CERC with a prayer to allow it to intervene/
participate in the above referred suo-motu petition. On this issue, CEA and WRLDC had earlier reviewed all inputs and given
their acceptance on COD dates.
8.2. MUMBAI OPERATIONS
8.2.1. MULTI YEAR TARIFF ORDERS OF MERC
The Multi Year Tariff (MYT) petitions for Mumbai generation, transmission and distribution businesses of the Company were
filed with MERC during the year, which included truing-up for FY15 and provisional truing-up for FY16, as also the Annual
Revenue Requirement (ARR) for 3rd MYT Control Period from FY17 to FY20 was filed. MERC passed its MYT order for generation
business on 8th August 2016; for transmission business on 30th June 2016 and for distribution business on 21st October 2016.
Review petitions with MERC and appeals with APTEL have been filed challenging the disallowance by MERC in the tariff orders.
8.2.2. NETWORK ROLL-OUT PLAN
Post the judgement of APTEL in November 2014, your Company submitted its revised network rollout plan in Case No. 182
of 2014. MERC passed an interim order in the said petition on 9th November 2015, directing constitution of a committee to
examine and finalize the operational specific matters/physical rollout of network for the consideration of MERC. On 28th March
2016, the committee provided its recommendation to MERC for its consideration and a public hearing was conducted on
21st June 2016. The network rollout plan of your Company is currently pending order of the Commission.
8.2.3. DISTRIBUTION LICENSES - APPEAL FILED BY R-INFRA AND BEST
Appeal filed by Reliance Infrastructure Limited (R-Infra) challenging the distribution license granted to Tata Power -Distribution
in August 2014 is pending before APTEL. Further, appeals filed by R-Infra and Brihanmumbai Electric Supply & Transport
Undertaking (BEST) against the interim order dated 9th November 2016, passed by MERC, are also pending before APTEL.
8.2.4. MID TERM REVIEW ORDERS - CIVIL APPEAL FILED WITH HON’BLE SUPREME COURT
A civil appeal has been filed by your Company before the Supreme Court challenging the judgement of APTEL in Review
Petition No. 13 of 2016 and order dated 3rd June 2016 in appeal nos. 244 and 246 of 2015 dismissing the appeals and review
petition filed by Tata Power-Generation and Transmission against the mid-term review orders issued by MERC. The civil appeal
was heard on 30th January 2017 and is currently pending before the Supreme Court.
8.2.5. KEY JUDGEMENT - CHALLENGING EOI BY MERC FOR GRANT OF LICENSE
A critical judgement has been passed by APTEL on 4th November 2016, dismissing appeal no. 243 of 2016 filed by BEST against
MERC, challenging the invitation for expression of interest issued by MERC for grant of licence to Tata Power - Distribution.
34 I Board’s Report
The Tata Power Company Limited
APTEL dismissed the appeal on the grounds that the points raised by BEST have been, inter alia, covered by the judgement
of the Supreme Court that there can be a parallel licensee in the area where a local authority is licensed to supply electricity.
8.2.6. KEY JUDGEMENT - ALLOWING TATA POWER TO SUPPLY OUTSIDE THE LICENSE AREA
MERC passed an order dated 10th May 2016, in Case No. 43 of 2016 allowing Tata Power to continue to supply power to six
consumers who fall outside the licence area of Tata Power. MERC also disallowed Maharashtra State Electricity Distribution
Company Limited’s (MSEDCL) claim on seeking cross subsidy surcharge from the six consumers in its area of supply. MSEDCL’s
revenue petition is pending for hearing.
8.2.7. STANDBY CHARGES
On an appeal filed by your Company, the Supreme Court had stayed the operation of the APTEL order in 2007, subject to the
condition that your Company deposits an amount of ` 227 crore and submits a bank guarantee for an equal amount. Your
Company has complied with both the conditions. R-Infra has also subsequently filed an appeal before the Supreme Court
challenging the APTEL order. Both the appeals have been admitted in 2007. The matter was part heard during the year and
the hearings are yet to be completed.
8.2.8. ENERGY CHARGES AND ‘TAKE OR PAY’ OBLIGATION
MERC directed R-Infra to pay ` 323.87 crore to Tata Power towards its ‘Take or Pay’ obligation for the years 1998-99 and 1999-2000.
On an appeal filed by R-Infra, APTEL upheld Tata Power’s contention with regard to payment for energy charges but reduced the
rate of interest. As regards the ‘Take or Pay’ obligation, APTEL has ordered that the issue should be examined afresh by MERC
after the decision of the Supreme Court in the appeals relating to the distribution license and rebates given by R-Infra. Tata Power
and R-Infra have filed appeals with Supreme Court. The Supreme Court, vide its order dated 14th December 2009, has granted
stay against the APTEL order and has directed R-Infra to deposit with the Supreme Court a sum of ` 25 crore and furnish a bank
guarantee for the balance amount. No hearings were held during the year on this matter.
8.2.9. ENTRY TAX
Your Company had filed a writ in the High Court at Bombay (HC) challenging the constitutional validity of the Maharashtra
Entry Tax Act. HC, vide its order dated 2nd August 2016, dismissed the writ petition. Aggrieved, your Company filed Special Leave
Petition (SLP) in the Supreme Court. Vide its order dated 21st October 2016, the Supreme Court passed the order staying the
demand of Entry tax, by extending the interim stay earlier granted by the High Court. There is no date fixed for further hearing
of the matter and the same will come up in due course.
8.3.
JOJOBERA OPERATIONS
8.3.1. APTEL JUDGEMENT FOR JOJOBERA UNIT 2 and UNIT 3
APTEL, in August 2016, passed a favourable order in an appeal filed by your Company challenging some of the findings of
the Jharkhand State Electricity Regulatory Commission (JSERC) in the Annual Performance Review (APR) order for FY13 for
Jojobera Unit 2 and Unit 3.
8.3.2. ANNUAL PERFORMANCE REVIEW (APR) ORDER FOR FY15-16 FOR JOJOBERA UNIT 2 AND UNIT 3
In January 2017, JSERC passed the APR order for FY16 including truing-up for FY14 and FY15 and revised true-up for FY13 in light
of the judgement of APTEL. JSERC has also allowed claims of your Company while carrying out the true-up for FY14 and FY15.
8.3.3. APPROVAL OF THE REVISED PPA OF JOJOBERA UNIT 2 & UNIT 3
JSERC had earlier directed your Company to renegotiate the terms and conditions of the Power Purchase Agreement (PPA) with
Tata Steel Distribution Licensee (TSDL) for Jojobera Unit 2 and Unit 3 subsequent to their transition to the regulatory regime.
Accordingly, the PPA for the above Units was re-negotiated with TSDL and submitted before JSERC for its approval. JSERC has,
in August 2016, accorded its approval on the Revised PPA for Jojobera Unit 2 and Unit 3, which has now been taken up for
execution between your Company and TSDL.
8.4. MAITHON POWER LIMITED (MPL)
8.4.1. APPEAL FILED AGAINST DISALLOWANCES BY CERC IN MPL TARIFF ORDER
In May 2016, APTEL passed its judgement on the appeal filed by MPL against the partial disallowance by CERC in its order dated
19th November 2014 of the Interest during Construction (IDC) and cost of secondary fuel oil consumption. APTEL has upheld
the findings of CERC and dismissed the plea of MPL. MPL thereafter, has filed a petition for review of the above judgement
before APTEL and an appeal with the Supreme Court against APTEL’s judgment. Both the submissions are pending before the
respective forums.
Board’s Report I 35
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 8.4.2. APPEAL FILED CHALLENGING DERC ORDER
MPL has challenged, before APTEL, the findings of Delhi Electricity Regulatory Commission (DERC) regarding the jurisdiction
of the appropriate Commission pertaining to resolution of disputes arising out of the medium-term PPA between MPL and
the Delhi discoms for the period October 2010 to March 2012. APTEL, in its judgement, has directed MPL to approach CERC for
resolution of the disputes. Accordingly, MPL has approached CERC with a petition for resolution of the disputes.
8.4.3. TARIFF PETITION FOR FY14-19
MPL has filed a Petition for determination of the tariff for the period FY14-19 along with the truing-up for FY11-14 on 1st June
2015, before CERC. The proceedings in the above matter has been completed in December 2016 and the order is reserved.
8.4.4. PETITION SEEKING IN-PRINCIPLE APPROVAL FOR CAPEX SCHEMES FOR MEETING NEW ENVIRONMENT NORMS
MoEF&CC, vide its notification dated 7th December 2015, has revised the environment emissions norms, mandating all thermal
power plants to comply with new/revised norms. Petition (72/MP/2016) filed by MPL seeking in-principle approval of abstract
scheme of capex in compliance with new environmental norms has been disposed off by CERC directing MPL to approach CEA
and MoEF&CC to decide the optimum technology and associated costs, for phasing of implementation of different environment
measures and to then approach CERC based on the approval of CEA and direction of MoEF&CC. MPL has approached CEA and
MoEF&CC as per directions of CERC.
8.4.5. PETITION SEEKING CLARIFICATION ON METHODOLOGY OF AVAILABILITY
MPL has filed a miscellaneous petition before CERC seeking clarification on the methodology of computation of availability
for generating stations where PPA with the beneficiaries is based on contracted capacity and not on government allocated
percentages as in the case of central generating stations. The proceedings in the above matter have been completed in October
2016 and the order is reserved.
8.4.6. GRADE SLIPPAGE
CERC, in 2014 Regulations, changed the methodology of measurement of Gross Calorific Value (GCV) from ‘as fired’ to ‘as received’
basis. TPDDL had filed Petition before CERC against National Thermal Power Corporation (NTPC), Damodar Valley Corporation
(DVC) and MPL for measurement of GCV in accordance with the 2014 Regulations. CERC passed directions laying down the
procedure for measurement of GCV and CERC is examining the progress made by generating companies in compliance with
its directions. MPL has filed affidavits listing out the existing procedure and seeking relaxation in the method prescribed by
CERC. The matter is pending before CERC for orders.
8.5.
POWERLINKS TRANSMISSION LIMITED (PTL)
8.5.1. TRUING-UP FOR FY10 TO FY13 FOR PTL
CERC, in May 2016, passed the true-up orders for FY10 to FY13 for transmission assets of PTL pertaining to eastern, northern
and ER-NR inter-connector region. CERC, in the above order, had approved the annual transmission charges along with the
transmission majoration factor for above period. However, CERC has directed its staff to examine the issue of transmission
majoration factor and its impact to review the continuation of transmission majoration factor for subsequent years.
8.6. OTHER MATTERS
The Company has had a number of contracts with the M. Pallonji group of companies (MP) over last several years. These include
contracts related to barging, dredging, shipping and contracts for painting of the Company’s power stations at Trombay, hydros
and Jojobera.
Some of the contracts were awarded long-term as new capital equipment had to be deployed and significant cost and logistics
benefits would be achieved vis-à-vis the then prevalent arrangement to get coal to Trombay station.
The Company had followed the requisite processes in award of the contracts and necessary approvals from the Board Committees
/ Management have been taken as required as per the Schedule of Authorities prevailing at various times.
9.
RISKS AND CONCERNS
Your Company is faced with risks of different types, all of which need different approaches for mitigation. Details of various
risks faced by the Company are provided in section 4 of MD&A of this Annual Report.
36 I Board’s Report
The Tata Power Company Limited 10. RISK MANAGEMENT FRAMEWORK AND INTERNAL FINANCIAL CONTROLS
Risk Management Framework:
Based on the Risk Management Policy (https://www.tatapower.com/aboutus/pdf/risk-management-policy.
pdf)(alternately, scan the adjacent QR Code using a mobile device to read the policy on the Company
website), a standardized Risk Management Process and System has been implemented across Tata Power
Group. Risk plans have been framed for all identified risks and uploaded in the system with mitigation
action, target dates and responsibility. This has enabled continuous tracking of status of mitigation action
and monitoring of Risk Mitigation Completion Index (RMCI). The Risk Register contains the mitigation plans
for eleven categories of risk. Eight Functional Risk Management Committees (FRMCs) closely monitor and
review the risk plans. This year, standardisation of risks and mitigation measures was taken up as an exercise to ensure uniformity
of risks across Tata Power Group and learning and sharing.
All risks have been classified into strategic, tactical and operational risks. Apex Risk Management Committee (ARMC) meets
every quarter to review major strategic and tactical risks, identify new risks and assess the status of mitigation measures. As
per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations), a Risk Management Committee (RMC) was constituted which currently comprises 3 Independent Directors, 1
Executive Director, the Chief Financial Officer and the Chief Risk Officer. The RMC meets regularly to review critical strategic
risks and summary of top risks of each of the eleven categories and their status in terms of mitigation actions. To increase focus
on critical risk groups, all risks have been grouped into 20 risk themes.
In FY15, British Standards Institution (BSI) conferred the ‘Statement of Compliance’ on Tata Power for ISO 31000:2009 – a
recognition that implies that the Company has strong processes for risk identification, management and mitigation. Tata Power
is the first power company in India to get this recognition. In FY16, BSI did the assessment of Tata Power and its eight major
subsidiaries (viz. CGPL, MPL, TPDDL, TPTCL, TPSSL, TPREL, PTL and IEL) and conferred the ‘Statement of Compliance’ for Tata
Power Group for ISO 31000:2009. This year, Tata Power Group has again been recommended for conferring the Statement of
Compliance, basis BSI’s recent assessment in February 2017.
Internal financial controls and systems:
The Company has its internal audit function which endeavours to make meaningful contributions to the organisation’s overall
governance, risk management and internal controls. The function reviews and ensures sustained effectiveness of Internal
Financial Controls (IFC) by adopting a systematic approach to its work.
As per the provisions of Section 177 of the Companies Act, 2013 (the Act) and the Audit Committee Charter adopted by the
Board of Directors, one of the roles and responsibilities of the Audit Committee, is to review the effectiveness of the Company’s
internal control system, including financial controls, information technology security and its control.
Section 143(3) of the Act provides that the Statutory Auditor’s Report shall state whether the Company has an adequate IFC
system in place and the operating effectiveness of such controls, for FY16 and beyond.
As per Section 134 of the Act, Directors of listed companies, based on the representations received from the management, are
to confirm in the Directors Responsibility Statement that IFC are adequate, as also operating effectively.
With this objective in mind and to fulfil the requirements of the Act, in FY16, the in-house internal audit team, with the support
of two expert audit firms, performed the test of design and test of effectiveness of IFC. Scoping was done based on major
classes of transactions and account balances. Seven key business cycles, general IT controls and Entity Level controls were
considered for review.
The Internal Audit and Risk Management (IARM) function has generally adopted Committee of Sponsoring Organizations
(COSO) framework. COSO is a leading framework which provides guidance on the design and evaluation of internal controls.
This has been done for 5 elements and 17 principles, which provides assurance of financial controls in place at the level of
functional heads and at top management level. This has helped in assessing the effectiveness and efficiency of operational
controls, enhanced governance and consideration of anti-fraud expectations, reliability of financial reporting and statutory
compliances. Attributes with internal control deficiencies are identified with action plans to be pursued, responsibility centres
and target dates for compliances.
For the Business Process level, controls are evaluated through internal audits and Control Self-Assessment (CSA). These CSAs
have also been rolled out across other Tata Power group companies too. The effectiveness of the IFC was then tested by an
external consultant who found no significant deficiencies. Further, the statutory auditor, through their independent testing of
IFC, has also issued an unmodified opinion.
All processes of the Company have been classified under vital, essential and desirable, based on the analysis of process impact
on Company’s Strategic Objectives. Post the audit, process is rated through the Risk Control Index and Process Robustness
Board’s Report I 37
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Index given by the Internal Auditors. Also, theme based audits are carried out for certain areas impacted by changing external
environment. Significant observations, including recommendations for improvement of the business processes are reviewed
by the Management before reporting to the Audit Committee. The Audit Committee then reviews the Internal Audit reports
and the status of implementation of the agreed action plan. Post recognition of ‘General Conformance to International Audit
Standards’ from Institute of Internal Auditors (IIA Global) in 2013, quality review of audit reports is carried out as per IIA global
guidelines before the report is issued. Internal audit process has been standardized across the Tata Power group.
Internal audit plan is executed by an in-house audit team with support from expert Internal Audit firms. This risk based audit
plan has been used for subsidiaries and other group companies as well. Your Company has also started its journey towards
digitalization through enhanced data analysis on audits which will result in improved quality and focused audits.
Assessment mechanism for measuring the existence and effectiveness of controls are established by the fact that the Value Added
Index, which is a measure of effectiveness and contribution of the internal audit to top management and Audit Committee, has
improved over the years and so has the Risk Control Index (RCI), thereby giving assurance to management of efficiency and
effectiveness of the IFC. The action taken statistics emerging out of internal audit reports for last three years reflect an increase
in implementation percentage achieved through rigorous and systematic follow up. Further, the total number of action points
has decreased over the last three years, thereby reflecting an improvement in the system and processes.
On review of the internal audit observations and action taken on audit observations, we can state that there are no adverse
observations having material impact on financials or commercial implications or material non-compliances which have not
been acted upon.
Control Self-Assessment: The Company continued the CSA process this year, whereby responses of all process owners are
used to assess internal controls in each process. It was also extended to seven other Tata Power group companies. This helps
the Company to identify focus audit areas, design the audit plan and support CEO/CFO certification for internal controls. The
CSA questionnaire is designed to test effectiveness of deployment of existing controls for processes which are not to be audited
as per the audit plan. The responses received from process owners on the questionnaire are analysed and validated through
spot audits. This ensures optimum coverage of audit universe to provide assurance on the operating effectiveness based on
results of evaluation across all processes.
Process Robustness Index (PRI): The processes are examined to assess their robustness, primarily from the perspective of
system driven controls (SAP, CRM, Documentum etc.), which ensures that deviations from the defined process do not occur due
to manual errors. In case controls have not been embedded in the system, other compensating controls such as maker-checker
are exercised to assess the robustness of the process. This index is computed on the basis of existence of robust controls and
not on the basis of extent of implementation of these controls. Your Company has obtained a copyright for this PRI scoring
methodology.
The scores for RCI and PRI for the past 3 years are listed below:
Scores
Risk control index (RCI)
Process robustness index (PRI)
11. SAFETY
FY17
92
52
FY16
91
44
(Table 7)
FY15
88
40
Safety is a core value of the Company. The Company has adopted a structured approach towards implementation of Safety
Policies and Programs and integrating safety with critical business processes to continuously improve safety performance.
Safety organisation has been established for developing and implementing Safety Management Systems and to facilitate a
change in culture through leadership interventions to mitigate risks.
Safety Statistics FY17:
(Table 8)
Sl. No.
Safety Parameters in your Company’s work jurisdiction (Tata Power, CGPL, MPL, IEL,
CTTL, PTL, TPDDL and TPSSL)
FY17
FY16
1
2
3
4
Fatality (Number)
LTIFR (Lost Time Injuries Frequency Rate per million man hours)
Total Injury Frequency Rate (No of injuries per million man hours)
First Aid Cases (Number)
2
0.23
4.67
190
3
0.20
5.16
325
The Company is deeply aggrieved by the fatalities and accidents. It treats any fatality in any of its premises, of any of its
employees, contractor/associate’s employees or any third party with equal gravitas and is committed to taking the entire
working environment and behaviour to the highest safety standards.
38 I Board’s Report
The Tata Power Company Limited Your Company has increased its efforts on safety during the year and has taken the following additional steps in FY17 to
improve safety:
•
•
•
•
•
•
•
•
Coaching to further improve Felt Leadership at all levels
Implemented the contractors’ safety code of conduct to improve capability and capacity of contractors
Structured Reward and Recognition Program which includes consequences and rewards in General Conditions of
Contracts (GCC) for associates and contractors
Enhanced Capability building through competency based training programs, at TPSDI’s state of the art skill building
schools, for high risk activities across all levels
Improvements in the mobile application ‘Suraksha’ on safety for incident reporting
High visibility safety tours by leadership
Risk Based Audit program to evaluate implementation of standards and effectiveness of management system
Implementation of SAP EHSM to integrate safety with business process
12. SUSTAINABILITY
Your Company successfully completed 100 years of operations and remains committed to the legacy of being a responsible
corporate citizen. It has practised sustainability over these 100 years and thus, reinforced the core value of Leadership with Care.
For your Company, sustainability is care for the environment, care for the customers and shareholders, care for the community
and care for our people.
The Company’s efforts on sustainability were recognized at various platforms and a testimony of this was the various awards
bestowed upon your Company. The Company has received a high rating of ‘A’ for its sustainability performance according to a
new assessment done by Confederation of Indian Industry (CII). It is based on a comprehensive assessment of environmental,
social and governance analysis of companies which helps them to measure performance as well as identify risks that challenge
sustainability of their business.
The year also saw the launch of the Company’s 7th Sustainability Report for FY16, and the first one to be prepared in accordance
with the latest G4 Guidelines of the Global Reporting Initiative (GRI).
Leadership and Oversight on
Sustainability
Advocacy
Conforming
to high ethical
standards
The Objective
Leadership with Care
The Enablers
Institutional Structures
and Systems
Providing sustainable returns to all our
key economic stakeholders
The Eliment
Care for our Environment (society at large)
Environment
Conservation
Efficient Use of
Energy
Investment in
Green tech
Care for our
shareholders and
customers
Care for our
Community
Care for our
people
Initiatives
that are
based on, and
encompassing
What needs to be done (material to both stakeholders and us)
What we are good at doing / is linked to our business
What we should take up as national thrust areas for development
What we should define as our stds: from compliance to competing to leading
Providing sustainable returns to all our
key economic stakeholders
New
Technology
Benchmarking, Going
beyond compliance
Architecture
of care
Fig. Tata Power Sustainability Model
The Enablers
Board’s Report I 39
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 12.1. CARE FOR OUR COMMUNITY/COMMUNITY RELATIONS
Your Company has actively worked on the key focus areas in Corporate Social Responsibility (CSR) of education, health, livelihood
and employability, social capital and financial inclusivity, as well as rural energy.
Your Company has a unique governance system for Sustainability as a strategic theme. This is guided by the Sustainability
Advisory Council (SAC) comprising eminent experts from various fields impacting sustainability.
Your Company’s standalone CSR spend for FY17 stood at ₹ 22.79 crore against the Companies Act requirement of ` 21.84 crore.
Additionally, as a part of disaster relief operations, the Company contributed towards relief efforts in Assam. Besides this, 5
employees were selected to be trained as project managers to be deployed as part of Tata Group relief efforts.
Independent monitoring, effectiveness of implementation and impact assessment were undertaken to provide feedback and
to refine, realign the programs so that the extent and effectiveness of the initiatives could be improved in pursuance of Tata
Power’s objective to improve the quality of life of the community and to get the community’s tacit or implied acceptance of
the Company’s co-existence with them.
Details of the CSR activities of your Company and its key subsidiaries are listed in the MD&A section of this Annual Report.
Annual report of CSR activities is provided in Annexure-II.
12.2. AFFIRMATIVE ACTION
Under its Affirmative Action (AA) program, your Company has implemented several initiatives for Employment, Entrepreneurship,
Employability, Education and Essential Amenities for the communities around its operating sites.
The major programs carried out in the neighbourhood of the operating plants and projects are Skill Development Programs for
youth (Industrial Training Institutes, Business Process Outsourcing training and Vocational Trainings), entrepreneurial programs
like fly ash brick making/supporting Self Help Groups (SHG), and support for educational initiatives for school children like
scholarships and coaching classes in the evenings along with assistance in the development of adequate infrastructure.
The Company continued its work in areas beyond its areas of operations, such as in Jawhar taluka, Palghar district of Maharashtra,
which has a tribal population of over 90% of the total population with a vast majority of them below the poverty line. The
activities here include initiatives like generating livelihood opportunities to improve sub-economic status, integrated watershed
management program, capacity building through a participatory approach, women’s empowerment through SHGs and a
Village Development Council (VDC) for sustainable development. The VDC has elected members from the village, as well as a
Tata Power representative and are responsible for the sustainable development of the village.
12.3. CARE FOR OUR ENVIRONMENT
The Company, during the year, addressed various aspects of resource conservation, energy efficiency, carbon footprint,
renewable power generation, biodiversity and green buildings. Details of initiatives undertaken are given in MD&A Section 9.1.3
12.4. CLUB ENERJI
Tata Power’s Club Enerji is focused on school students to champion the noble cause of conservation of resources and enhance
moral and civic values. The Club has been ceaselessly working towards creating responsible citizens of tomorrow who focus
not only on conserving energy and natural resources (like fossil fuel - coal, oil, gas, water; managing waste; afforestation), but
also conserve civic, ethical and moral values in society at large.
Tata Power Club Enerji is a sustainability initiative aimed at creating awareness among school students, who in turn, sensitise
their families and neighbourhood towards energy and resource conservation through dynamic and innovative measures. The
current program is based on the four stage model of Educate (sensitise school children about energy conservation practices),
Engage (empower energy champions to spread awareness amongst peers and the community), Enhance (enthuse schools to
participate and contribute to Club Enerji initiatives) and Empower (create self-sustaining Mini Clubs that will lead the movement).
Recognizing the immense value that schools and school children can bring to the initiative and taking due consideration of
the social need, Tata Power started “Tata Power Club Enerji” in 2007 to propagate efficient usage of energy and to educate
the society on climate change issues. Club Enerji covers 500 schools across Mumbai, Delhi, Pune, Ahmedabad, Bengaluru,
Kolkata, Belgaum, Jamshedpur, Lonavala and five more cities. It has reached out to more than 1.28 crore citizens, collectively
saved 17.26 million units of electricity - equivalent to saving 17,000 tons of CO2. All over India, 1,337 Mini Clubs have also been
formed under the Club Enerji initiative.
Tata Power Club Enerji also launched its comprehensive Online Module in November 2015 with an aim to reach out to a larger
audience with a vision of transformation and adoption of a holistic and robust approach towards conservation. The module,
since its launch, has also reached out to audiences in new international geographies like Philippines, UAE, USA, UK and South
Africa and newer national geographies like Chandigarh, Hyderabad and Chennai.
40 I Board’s Report
The Tata Power Company Limited Club Enerji & Greenolution was presented at IIM – Ahmedabad in Feb 2017 in a TEDx IIM Ahmedabad event held on the topic:
“Driving Conservation by shaping the future generations”.
12.5. DEMAND-SIDE MANAGEMENT
Your Company has been at the forefront of propagating energy conservation and efficiency.
Demand-side management (DSM) refers to cooperative activities between the utility and its customers to implement options
for increasing the efficiency of energy utilization, with resulting benefits to the customer, utility and society as a whole.
Industrial, commercial and residential consumers in the city have unique usage patterns. Under “Be Green” initiative, your
Company gives an opportunity to Mumbai consumers to exchange their old, inefficient electrical appliances for new, 5 star rated
energy efficient appliances at a discounted price. The Company has partnered with leading consumer appliance manufacturers
for energy efficient equipment. The consumers appreciate these initiatives as it helps to reduce their energy cost by 30% to
50% without compromising on their comfort and convenience.
During this financial year, these programs received a good response and more than 13,000 energy efficient appliances (LED
tube lights, ceiling fans, refrigerators and split ACs) have been distributed in FY17. HVAC Audit, Pump Audit, Power Quality
Audit were carried out through Energy Audit program this year. These audits helped consumers to focus on the areas which
offer the greatest scope for energy savings.
Your Company also facilitated the implementation of National-level Program (DELP/UJALA) which is being implemented by M/s.
EESL, a Union Govt. Undertaking, and aims to increase the penetration of LED lighting technology in the residential sector. The
DELP/UJALA program witnessed the distribution of more than 1.1 lakh LED bulbs for Tata Power consumers in Mumbai during FY17.
12.6. SUSTAINABILITY REPORTING
Your Company has adopted the latest Global Reporting Initiative (GRI) G4 guidelines to report on its
sustainability performance. The report, prepared in accordance with the comprehensive criteria, is specific
to the Indian operations of your Company viz. generation, transmission and distribution of power and
highlights the sustainability performance of your Company. The Company’s Sustainability Report is hosted
on its website: https://www.tatapower.com/sustainability/sustainability-communications.aspx (alternately,
scan the adjacent QR Code using a mobile device to read the policy on the Company website)
12.7. BUSINESS RESPONSIBILITY REPORT (BRR)
The Business Responsibility Reporting was in line with the SEBI requirement based on the ‘National Voluntary
Guidelines on Social, Environmental and Economic Responsibilities of Business’ notified by Ministry of
Corporate Affairs (MCA), Government of India, in July 2011. Your Company reported its performance for
FY17 as per the BRR framework, describing initiatives taken from an environmental, social and governance
perspective. The BRR is hosted on the Company website: https://www.tatapower.com/investor-relations/brr.
aspx (alternately, scan the adjacent QR Code using a mobile device to read the policy on the Company website).
12.8.
INTEGRATED REPORTING (IR)
Your Company prides itself in making voluntary disclosures to keep its stakeholders fully informed on all aspects of its business.
It has decided to take steps to further enhance the disclosures and information provided in its annual report in alignment with
the Integrated Reporting framework by International Integrated Reporting Council (IIRC).
13. TRANSITION TO INDIAN ACCOUNTING STANDARDS
With effect from 1st April 2016, your Company was required to align its accounting policies and disclosures with new Indian
Accounting Standards or IndAS. Consequently, the financial statements to be issued thereafter are different from those issued
from the previous set. Apart from differences in the way assets, liabilities, income, expenses and losses are measured, even the
disclosure requirements, as also the various statements comprising the financial report, have substantially changed.
The significant changes that have affected the net worth and the profits are on account of the following:
a)
b)
c)
Effect of some erstwhile subsidiaries (IEL, PTL and Dugar Hydro) re-classified as Joint Ventures (JV) and change to Equity
Accounting for JVs and reclassified subsidiaries. JVs and erstwhile subsidiaries were earlier consolidated on line by line
basis;
Tata Power Jojobera Plant and IEL PPA arrangements categorized as Finance Lease, their assets derecognized and
treated as Lease Receivables;
Fair valuation of current and non-current investments other than investments in subsidiaries, joint ventures and
associates. However, certain unquoted investments in Tata group companies have been valued at cost as their fair
value based on appropriate methodology is not materially different from their carrying cost;
Board’s Report I 41
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
d)
e)
f )
g)
h)
i)
j)
k)
Effective Interest Rate (EIR) Method adopted for Long term borrowings and debentures;
Fair valuation of forward and option contracts and IRS;
Preference shares considered as compound/debt instrument;
Consider Interest and Commission charges for Interest free loan and Guarantee issued to group companies;
Reversal of proposed dividend and Dividend Distribution Tax thereon;
Change in Deferred Tax computation from P & L approach to Balance Sheet approach;
De-recognition of Interest on Forex Loan Capitalized;
Revamping of the notes to the accounts and much more elaborate disclosures
14. DIRECTORS AND KEY MANAGERIAL PERSONNEL
Directors
Ms. Anjali Bansal, Ms. Vibha Padalkar and Mr Sanjay V. Bhandarkar were appointed as Additional Directors of the Company with
effect from 14th October 2016, in accordance with Article 132 of the Company’s Articles of Association and Section 161 of the
Act. They hold office only upto the date of the forthcoming Annual General Meeting (AGM) and a Notice under Section 160(1)
of the Act has been received from a Member signifying his intention to propose their appointment as Directors. They were also
appointed as Independent Directors for a period of 5 years with effect from 14th October 2016 upto 13th October 2021, subject
to approval of the Members at the ensuing AGM.
Mr. S. Padmanabhan was appointed as an Additional Director of the Company with effect from 16th December 2016, in accordance
with Article 132 of the Company’s Articles of Association and Section 161 of the Act. Mr. Padmanabhan holds office only upto
the date of the forthcoming AGM and a Notice under Section 160(1) of the Act has been received from a Member signifying its
intention to propose his appointment as Director. Mr. Padmanabhan was nominated as Chairman of the Board of Directors of
the Company with effect from 3rd January 2017, by Tata Sons Limited (TSL) pursuant to Article 164(b) of the Company’s Articles
of Association, where TSL has the right to nominate the Chairman of the Board of Directors of the Company. He continued as
Chairman till 10th February 2017 and thereafter, continues as Non-Executive Director on the Company’s Board.
Mr. N. Chandrasekaran was appointed as an Additional Director of the Company with effect from 11th February 2017, in accordance
with Article 132 of the Company’s Articles of Association and Section 161 of the Act. Mr. Chandrasekaran holds office only upto
the date of the forthcoming AGM and a Notice under Section 160(1) of the Act has been received from a Member signifying its
intention to propose his appointment as Director. Mr. Chandrasekaran was also nominated as Chairman of the Board of Directors
of the Company with effect from 11th February 2017, by TSL, pursuant to Article 164(b) of the Company’s Articles of Association.
Mr. K. M. Chandrasekhar was appointed as an Additional Director of the Company with effect from 4th May 2017, in accordance
with Article 132 of the Company’s Articles of Association and Section 161 of the Act. Mr. Chandrasekhar holds office only upto
the date of the forthcoming AGM and a Notice under Section 160(1) of the Act has been received from a Member signifying
his intention to propose his appointment as Director. Mr. Chandrasekhar was also appointed as an Independent Director for a
period of 5 years with effect from 4th May 2017 upto 3rd May 2022, subject to approval of the Members at the ensuing AGM.
Mr. Ashok S. Sethi was re-appointed as COO and Executive Director of the Company for a period commencing from 1st April
2017 till 30th April 2019. His re-appointment and the remuneration payable to him require approval of the Members at the
ensuing AGM.
Mr. Cyrus P. Mistry, Non-Executive Chairman on your Company’s Board, resigned as Director effective 19th December 2016.
Consequently, Mr. Mistry ceased to be Chairman of the Board of Directors of the Company.
Consequent upon their completing 75 years of age, as required by the guidelines adopted by the Company for retirement of
Non-Executive Directors, Mr. Piyush G. Mankad, Mr. Ashok K. Basu and Dr. Homiar S. Vachha, Independent Directors on your
Company’s Board, ceased to be Directors of the Company effective 18th November 2016, 24th March 2017 and 23rd April 2017,
respectively.
The Board of Directors place on record their deep appreciation for the contribution of these Directors during their tenure.
In accordance with the requirements of the Act and the Company’s Articles of Association, Ms. Sandhya S. Kudtarkar retires by
rotation and is eligible for re-appointment.
Nine Board Meetings were held during the year. For further details, please refer to Report on Corporate Governance, which
forms a part of this Report.
In terms of Section 149 of the Act, Mr. N. H. Mirza, Mr. D. M. Satwalekar, Ms. Anjali Bansal, Ms. Vibha Padalkar, Mr. S. V. Bhandarkar
and Mr. K. M. Chandrasekhar are the Independent Directors of the Company. The Company has received declarations from all
the Independent Directors confirming that they meet the criteria of independence as prescribed under the Act.
42 I Board’s Report
The Tata Power Company Limited
Key Managerial Personnel
In terms of Section 203 of the Act, the following are the Key Managerial Personnel (KMP) of the Company:
•
•
•
•
Mr. Anil Sardana, CEO and Managing Director
Mr. Ashok S. Sethi, COO and Executive Director
Mr. Ramesh N. Subramanyam, Chief Financial Officer
Mr. Hanoz M. Mistry, Company Secretary
15. ANNUAL EVALUATION OF BOARD PERFORMANCE AND PERFORMANCE OF ITS COMMITTEES AND
INDIVIDUAL DIRECTORS
Pursuant to the provisions of the Act and Regulation 25 of the Listing Regulations, the Board has carried out an annual evaluation
of its own performance, performance of the Directors individually as well as the evaluation of the working of its Committees.
The following process was adopted for Board evaluation:
i)
ii)
iii)
iv)
v)
vi)
Feedback was sought from each Director about their views on the performance of the Board, covering various criteria
such as degree of fulfilment of key responsibilities, Board structure and composition, establishment and delineation
of responsibilities to various Committees, effectiveness of Board processes, information and functioning, Board culture
and dynamics, quality of relationship between the Board and the Management and efficacy of communication with
external stakeholders. Feedback was also taken from every Director on his assessment of the performance of each of
the other Directors.
The Nomination and Remuneration Committee (NRC) then discussed the above feedback received from all the Directors.
Based on the inputs received, the Chairman of the NRC also made a presentation to the Independent Directors at their
meeting, summarising the inputs received from the Directors as regards Board performance as a whole and of the
Chairman. The performance of the Non-Independent Non-Executive Directors and Board Chairman was also reviewed
by them.
Post the meeting of the Independent Directors, their collective feedback on the performance of the Board (as a whole)
was discussed by the Chairman of the NRC with the Chairman of the Board. It was also presented to the Board and a
plan for improvement was agreed upon and is being pursued.
Every statutorily mandated Committee of the Board conducted a self-assessment of its performance and these
assessments were presented to the Board for consideration. Areas on which the Committees of the Board were assessed
included degree of fulfilment of key responsibilities, adequacy of Committee composition and effectiveness of meetings.
Feedback was provided to the Directors, as appropriate. Significant highlights, learning and action points arising out of the
evaluation were presented to the Board and action plans drawn up. During the year under report, the recommendations
made in the previous year were satisfactorily implemented.
16. REMUNERATION POLICY FOR THE DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER
EMPLOYEES
In terms of the provisions of Section 178(3) of the Act and Regulation 19 read with Part D of Schedule II to the Listing Regulations,
the NRC is responsible for formulating the criteria for determining qualification, positive attributes and independence of a
Director. The NRC is also responsible for recommending to the Board a policy relating to the remuneration of the Directors, Key
Managerial Personnel and other employees. In line with this requirement, the Board has adopted the Policy on Board Diversity
and Director Attributes, which is reproduced in Annexure-III and Remuneration Policy for Directors, Key Managerial Personnel
and other employees of the Company, which is reproduced in Annexure-IV to this Report.
17. COMMITTEES OF THE BOARD
The Committees of the Board focus on certain specific areas and make informed decisions in line with the delegated authority.
The following statutory Committees constituted by the Board function according to their respective roles and defined scope:
•
•
•
•
•
Audit Committee of Directors
Nomination and Remuneration Committee
Corporate Social Responsibility Committee
Stakeholders Relationship Committee
Risk Management Committee
Board’s Report I 43
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Details of composition, terms of reference and number of meetings held for respective committees are given in the Report
on Corporate Governance.
The Board has laid down separate Codes of Conduct for Non-Executive Directors and Senior Management personnel of the
Company and the same are posted on the Company’s website at https://www.tatapower.com/aboutus/
pdf/Code-of-Conduct-NEDs.pdf. (alternately, scan the adjacent QR Code using a mobile device to read the
policy on the Company website). All Senior Management personnel have affirmed compliance with the
Tata Code of Conduct (TCOC). The CEO & Managing Director has also confirmed and certified the same.
The certification is enclosed at the end of the Report on Corporate Governance.
18.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION
The information on conservation of energy and technology absorption stipulated under Section 134 (3) (m) of the Act read
with Rule 8 of The Companies (Accounts) Rules, 2014, is attached as Annexure - V.
19. PARTICULARS OF EMPLOYEES AND REMUNERATION
The information required under Section 197(12) of the Act read with Rule 5 of The Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014, is attached as Annexure - VI.
The information required under Rule 5(2) and (3) of The Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is provided in the Annexure forming part of this Report. In terms of the first provision to Section 136 of the Act, the
Report and Accounts are being sent to the Members excluding the aforesaid Annexure. Any Member interested in obtaining
the same may write to the Company Secretary at the Registered Office of the Company. None of the employees listed in the
said Annexure is related to any Director of the Company.
Officers of the organisation are classified into five management work levels i.e. MA, MB, MC, MD and ME. The work levels are
further divided into grades. Non-management employees are across different grades and also have been classified as unskilled,
semi-skilled, skilled and highly skilled.
For the officers, a benchmarking exercise was undertaken in FY17 on compensation with the help of a global consultancy firm
specializing in remuneration and compensation. The benchmarking was to understand the comparative position of remuneration
of the Company’s officers vis-à-vis officers in equivalent grades in ten key companies in the energy and power sector. As per
this report, the median salary of officers at your Company in different grades was aligned to the market compensation.
20. RELATED PARTY TRANSACTIONS
In line with the requirements of the Act and the Listing Regulations, the Company has formulated a Policy
on Related Party Transactions and the same is uploaded on the Company’s website: https://www.tatapower.
com/aboutus/pdf/policy-on-related-party-transactions.pdf (scan the adjacent QR Code to read the details on
the Company website). Details of Related Party Transactions as per AOC-2 are provided in Annexure-VII.
21. DEPOSITS
Sl. No.
1.
2.
3.
4.
Particulars
Accepted during the year
Remained unpaid or unclaimed at the end of the year*.
Whether there has been any default in repayment of deposits or payment of interest thereon
during the year and if so, number of such cases and the total amount involved
• At the beginning of the year
• Maximum during the year
• At the end of the year
Details of deposits which are not in compliance with the requirements of Chapter V of the Act
* This relates to deposits accepted under the Companies Act, 1956.
22. LOANS, GUARANTEES, SECURITIES AND INVESTMENTS
(Table 9)
Amount in ₹
Nil
2,58,105
NA
NA
The Company, being an infrastructure company, is exempt from the provisions as applicable to loans, guarantees and securities
under Section 186 of the Act. The details of investments are provided in the notes to the financial statements.
44 I Board’s Report
The Tata Power Company Limited 23. EXTRACT OF ANNUAL RETURN
Pursuant to Section 92 of the Act and Rule 12 of The Companies (Management and Administration) Rules, 2014, the extract of
Annual Return in Form MGT-9 is provided in Annexure-VIII.
24. AUDITORS
M/s Deloitte Haskins & Sells LLP (DHS LLP), who are the statutory auditors of your Company, hold office until the conclusion of
this year’s AGM. The Board has recommended appointment of S R B C & CO. LLP (SRBC), Chartered Accountants, as statutory
auditors of the Company in place of DHS LLP, the existing auditors of the Company, for a period of 5 years from the conclusion of
this 98th Annual General Meeting (AGM) held in 2017 till the conclusion of the 103rd AGM to be held in 2022. In this connection,
the attention of the Members is invited for approval of Item No. 5 of the Notice, for appointment of Statutory Auditors.
Members will also be requested to pass a resolution (vide Item No.17 of the Notice) authorizing the Board of Directors to
appoint Branch Auditors for the purpose of auditing the accounts maintained at the Branch Offices of the Company abroad.
25. AUDITORS’ REPORT
The standalone and the consolidated financial statements of the Company have been prepared in accordance with Indian
Accounting Standards (IndAS) notified under section 133 of the Companies Act, 2013.
The Auditor’s Reports on the standalone and the consolidated financial statements contain the following qualification:
As described in Note 34 (b) and (c) to the standalone IndAS financial statements and Note 34 (ii) and (iii) to the consolidated Ind
AS financial statements, the fair value of unquoted equity shares of Tata Teleservices Limited (TTSL) has not been determined
as at 31st March, 2017. We are, therefore, unable to comment on whether the carrying value of:
a)
b)
Investments in TTSL of ` 384.88 crore represents the fair value of such investments as at 31st March 2017, and the
consequent impact thereof on Other Comprehensive Income, and
‘Other advance’, which represent TTSL shares receivable from DoCoMo under a contractual obligation of ` 138.55 crore
as at 31st March, 2017 represents the fair value of such shares and the consequent impact thereof on the Statement of
Profit and Loss.
Board’s comments:
The valuation report in respect of investment in TTSL is available from the Company only as at 30th September 2016. The Auditors
have qualified their report since TTSL was in the process of working out valuation as at 31st March 2017, when your Company’s
accounts were audited and adopted by the Board of Directors.
26. COST AUDITOR AND COST AUDIT REPORT
M/s Sanjay Gupta and Associates, Cost Accountants, were appointed Cost Auditors of your Company for FY17.
In accordance with the requirement of the Central Government and pursuant to Section 148 of the Act, your Company carries
out an annual audit of cost accounts relating to electricity. The Cost Audit Report and the Compliance Report of your Company
for FY16, was filed on 30th August 2016 with the Ministry of Corporate Affairs through Extensive Business Reporting Language
(XBRL) by M/s Sanjay Gupta and Associates, Cost Accountants, before the due date of 30th September 2016.
27. SECRETARIAL AUDIT REPORT
M/s. Parikh & Associates, Company Secretaries, were appointed as Secretarial Auditors of your Company to conduct a Secretarial
Audit of records and documents of the Company for FY17. The Secretarial Audit Report confirms that the Company has complied
with the provisions of the Act, Rules, Regulations, and Guidelines and that there were no deviations or non-compliances.
The Secretarial Audit Report does not contain any qualifications, reservations or adverse remarks or disclaimers. The Secretarial
Audit Report is provided in Annexure-IX.
28. CORPORATE GOVERNANCE
At Tata Power, we ensure that we evolve and follow the corporate governance guidelines and best practices sincerely, not just
to boost long-term shareholder value, but also to respect minority rights. We consider it our inherent responsibility to disclose
timely and accurate information regarding our operations and performance, as well as on the leadership and governance of
the Company.
During the second half of the year under review, the Company witnessed a leadership change at Tata Sons Limited (our Promoter).
During this period, there were allegations made regarding the ethics and governance of the Company. Clarifications were also
sought by the Regulators with respect to certain business decisions and governance process.
Board’s Report I 45
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE We categorically deny these references and would like to impress upon you that your Company has the highest corporate
governance standards, robust processes and a duly constituted and independent Board. Your Board exercises its independence
both, in letter and spirit. Your Directors understand their fiduciary duties and have always acted in the best interests of the
Company and will continue to do so. Equally, your Company has a professional and competent management to run the business.
The Board compliments the management team in coping with the leadership transition seamlessly and in remaining steadfast
towards achieving set objectives without getting distracted.
Further, during the course of the leadership transition, allegations were made with respect to certain contracts which had been
awarded by the Company. In this regard, we would like to place on record the fact that after a careful consideration of the issues
involved, the Audit Committee had requested the management to examine whether due process in award of contracts had
been followed and necessary approvals had been sought from the concerned authorities, based on which the Audit Committee
would decide next steps. The management had compiled the required information and submitted the required data to the
Audit Committee. Based on the records, the current management has reviewed the old contracts awarded and confirmed
that due process had been followed. The management has since then submitted to the Audit Committee a white paper on
the subject, duly confirming that the Company has not been subjected to any commercial deterrent or loss, over the period of
such contracts. The Audit Committee has now asked the (external) internal auditors of the Company to study the records and
answer certain queries raised by the Audit Committee members. Findings are awaited from the internal auditor in this regard.
Management is of the view that the allegations are incorrect.
Queries were also raised with regard to bidding and award of Mundra Project in 2006, which have been appropriately responded
to.
The Company employed rigorous processes in preparation of all accounts/ financial statements including detailed review
by the Board of Directors and the concerned Committees. The accounts and financial statements of the Company have also
been reviewed by the statutory auditors. The Company reiterated that its annual reports, accounts and financial statements,
as published from time to time, present a true and fair view of the state of affairs of the Company and its business and the
Company has disclosed all material facts as required under applicable laws.
Pursuant to Regulation 34 of the Listing Regulations and relevant sections of the Act, a Management Discussion and Analysis
Statement, Report on Corporate Governance and Auditors’ Certificate are included in the Annual Report.
29. VIGIL MECHANISM
Your Company believes in the conduct of the affairs of its constituents in a fair and transparent manner by adopting the highest
standards of professionalism, honesty, integrity and ethical behaviour. In line with the Tata Code of Conduct (TCOC), any actual
or potential violation, howsoever insignificant or perceived as such, would be a matter of serious concern for the Company.
The role of the employees in pointing out such violations of the TCOC cannot be undermined.
Pursuant to Section 177(9) of the Act, a vigil mechanism was established for directors and employees to report to the management
instances of unethical behaviour, actual or suspected, fraud or violation of the Company’s code of conduct or ethics policy. The
Vigil Mechanism provides a mechanism for employees of the Company to approach the Chief Ethics Counselor (CEC)/Chairman
of the Audit Committee of the Company for redressal.
30. DIRECTORS’ RESPONSIBILITY STATEMENT
Based on the framework of internal financial controls and compliance systems established and maintained by the Company,
work performed by the internal, statutory, cost auditors, secretarial auditors and external consultants including audit of IFC for
financial reporting by the statutory auditors and the reviews performed by management and the relevant Board Committees,
including the Audit Committee, the Board is of the opinion that the Company’s IFC were adequate and effective during FY17.
Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, confirms that:
a)
b)
c)
in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper
explanation relating to material departures in the matter of valuation of certain unquoted investments and the adequacy
of the provision for contractual obligation in the matter of NTT Docomo Inc.;
the Directors had selected such accounting policies and applied them consistently and made judgements and estimates
that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of
the financial year and of the profit of the Company for that period;
the Directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance
with the provisions of the Companies Act, 2013 for safeguarding the assets of the Company and for preventing and
detecting fraud and other irregularities;
d)
the Directors had prepared the annual accounts on a going concern basis;
46 I Board’s Report
The Tata Power Company Limited e)
f )
the Directors had laid down internal financial controls to be followed by the Company and that such internal financial
controls are adequate and were operating effectively;
the Directors had devised proper systems to ensure compliance with the provision of all applicable laws and that such
systems were adequate and operating effectively.
31. ACKNOWLEDGEMENTS
On behalf of the Directors of the Company, I would like to place on record our deep appreciation to our shareholders, customers,
business partners, vendors - both international and domestic, bankers, financial institutions and academic institutions for all
the support rendered during the year.
The Directors are thankful to the Government of India, the various Ministries of the State Governments, the Central and State
Electricity Regulatory authorities, communities in the neighbourhood of our operations, Municipal authorities of Mumbai, and
local authorities in areas where we are operational in India; as also partners, governments and stakeholders in International
geographies where the Company operates, for all the support rendered during the year.
Finally, we appreciate and value the contributions made by all our employees and their families for making Tata Power what it is.
Mumbai, 19th May 2017
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
Board’s Report I 47
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE ANNEXURE – I : DIVIDEND POLICY
(Ref.: Board’s Report, Section 3)
1.
1.1
2.
2.1
2.2
Context:
In July 2016, SEBI has inserted Regulation 43A with respect to Dividend Distribution Policy in Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015, whereby the top 500 listed entities based on market
capitalization (calculated as on 31st March of every financial year) are required to formulate a dividend distribution policy which
shall be disclosed in their annual reports and on their websites and the dividend distribution policy shall also include certain
stated parameters. Tata Power being one of the top 500 companies needs to frame such policy as per the SEBI regulations.
Background:
The Company’s overarching objective is to strike the right balance between adequately rewarding shareholders through
dividend and providing enough funds to drive future growth both organic and inorganic to maximize long term sustainable
shareholder value.
In order to be compliant with various statutes, the Company has to appropriate the following out of PAT earned each financial
year:
Transfer to Debenture Redemption Reserves as per guidelines stated in Companies Act.
Transfer to Contingencies Reserve as per Electricity Act.
Servicing of Unsecured Perpetual Securities.
Transfer to General Reserves.
•
•
•
•
• Dividend Distribution to shareholders including dividend distribution tax.
• Any adjustments to Other Comprehensive Income (OCI) as per Ind AS guidelines.
2.3
Each financial year end, the Company management viz. the CFO in consultation with CEO and Managing Director recommends
the amount to be declared as dividend to the Board along with all relevant workings, ratios, payouts, trends etc. As per the
existing laws and rules, Interim dividends are confirmed by the shareholders and final dividends recommended by the Directors
to shareholders for approval at the Annual General Meeting of the Company.
[a] Circumstances under which the shareholders of the listed entities may or may not expect dividend:
For the purposes of dividend distribution, the Company’s shareholders may expect the following broad criteria to be followed
by the Company -
• Dividends may be expected from the Company only after all required appropriations have been made and the resultant
profit after the appropriations is positive and sufficient distribution of dividends as per the parameters - financial or otherwise
mentioned below in point no. (b).
• A lower dividend may be proposed in the years that the Company has not made sufficient profits.
• Any dividend arising from negative profits would not be expected to be made up through plough back from the Company’s
accumulated Reserves. However, in exceptional cases, considering the reasons for which the profits are negative for the
year, the Board may recommend dividends out of accumulated profits.
[b] Financial Parameters would ideally include:
• Distributable profits adequacy after appropriating to all Reserves and making all adjustments but before providing for
dividends and tax thereon.
Special adjustments (upsides / downsides) which have affected the profits for the year in consideration.
•
• Historical trend of dividend declared rate per share for past 10 years.
Total payout of dividend and dividend tax on the same in ` crore.
•
Payout ratio on PAT and distributable profits.
•
Earnings per share on distributable profits.
•
• Cash availability for paying the proposed dividend.
[c]
Internal and External factors to be viewed:
State of the economy.
Profits projected for the ensuing financial year.
•
• Consolidated profits of Tata Power group.
•
• Change in rules, regulations and compliances.
•
• Working capital needs of the Company.
•
Restrictions under applicable laws including tax laws.
Projects in hand and support required to complete the projects from Parent Company.
48 I Board’s Report
The Tata Power Company Limited
• Adequacy of the Company’s current and projected Cash flows and strain on the existing cash reserves on account of
declaration of dividends.
• Dividend pay-out ratios of the companies in same Industry.
• Debt reduction plans of the Company.
•
• Mode of funding of the dividends proposed to be declared and cost of borrowings / internal accruals.
• Necessity to maintain adequate Reserves for future Contingencies which have not yet materialized and are thus not currently
Securities buy-back plan, if any.
accounted for.
[d] Utilisation of Retained Earnings:
•
•
•
Prime objective of retained earnings is to use it judiciously and invest either in existing projects of the Company,
modernization not funded by consumers, new projects or growth areas approved by the Board, retiring high cost debt etc.
The Company, on behalf of the shareholders, shall strive to grow its retained earnings at a rate which would be higher than
the risk free rate of return that can be earned alternatively.
The Company would also check its retained earnings vis-à-vis the debt-equity profile and ROE levels for the long-term
investors of the Company.
• Based on the Company’s projected Investment Opportunity balance, compared with the existing and projected debt-equity
structure as well as the cost of external borrowings, the enhanced or reduced retained earnings need would be ascertained
and the funds would be accordingly deployed for the same.
[e] Parameters that shall be adopted with regard to various classes of shares:
• Any current or future preference treatment shares, as per the rights mentioned therein, would be accorded preferential
dividend distribution.
• Balance distribution would be effected by the Company for the equity share component.
• As and when Company issues other kind of shares, the Board may suitably amend this policy.
[f] Others:
•
This policy may be disclosed as per Regulations applicable.
This policy may be subject to revision/amendment as per MCA/SEBI guidelines issued from time to time.
•
• Company may modify the policy by adding, deleting or altering some provisions as deemed fit.
•
If revision/amendments are not consistent with the existing practice followed then such revision/amendments will supersede
and the provisions will be modified accordingly.
The Company proposes to limit the distribution of dividend in the range of 30% to 60% of distributable profits unless this
policy is reviewed by the board again.
•
• Any payout of Dividend below 20% of distributable profits and above 60% would need be specifically approved by the
board as an exception to the policy.
3.
Subsidiary Companies - Draft Dividend Policy
• Subsidiary companies may consider the following aspects whilst dealing with their surplus profits and determining the best
•
possible use for the same:
Investments made by Parent Company in the Subsidiary have been approved based on IRR and cash flows reflected in the
financial model used for investment approvals.
• As a majority shareholder, the Parent Company would be concerned about mode of distribution of the surplus cash earned by
the Subsidiaries particularly because dividend is the only way to get returns on the investments made in that subsidiary.
• Subsequent to the initial investment in the subsidiary, any capex, growth or diversification plan of the Subsidiaries need to be
placed to Tata Power Board for approval as per current practice due to the immediate decision required on providing equity
funding and in some cases support to lenders.
• The Parent Company’s Board would convey to the Subsidiary concerned, its ability (or otherwise) to support the requirements
keeping in mind the overall leverage ratios and the specific equity raising plans at the parent level. It could also advise other
suggested modes of funding the requirements.
• Subsidiary companies are expected to be familiar with the overall strategy set by the Parent Company and align itself to the
strategic intent.
• All Subsidiaries/JV are expected to follow the principle of maximising the dividend payout unless specific purpose for retaining
the funds is identified and agreed to with the Parent in its capacity as shareholder.
• As far as foreign Subsidiaries of the Parent Company are concerned, the Parent Company Board would play the role of advising
the concerned Subsidiary of the usage of surplus funds of course the basic principles underlying remaining the same as above.
Board’s Report I 49
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Annexure – II : Annual Report on CSR Activities
(Ref.: Board’s Report, Section 12.1)
1.
A brief outline of the company’s CSR policy, including overview
of projects or programs proposed to be undertaken and a
reference to the web-link to the CSR policy and projects or
programs.
2.
The composition of the CSR Committee
Tata Power has been actively working in five thrust areas in
CSR:
•
•
•
•
•
Primary education with focus on girl child
Health and Drinking Water
Livelihood and Employability
Social Capital and Infrastructure
Inclusive Growth
The Company has ramped-up CSR capabilities and operations
across all locations by bringing robustness to systems and
processes to ensure effective programs which deliver long
term impact and change to the community.
Tata Power Community Development Trust (TPCDT) has
internal capability to execute CSR programs effectively and
efficiently.
The Company’s CSR policy, including overview of projects
or programs undertaken or proposed to be undertaken, is
provided on the Company website: https://www.tatapower.
com/aboutus/pdf/csr-policy-14.pdf
Ms. Anjali Bansal, Chairperson
Mr. Deepak M. Satwalekar
Mr. Anil Sardana
3.
4.
5.
(a)
(b)
(c)
Average net profit of the company for last three financial years. ` 1,092 crore
Prescribed CSR Expenditure (two percent of the amount as
in item 3 above)
` 21.84 crore
Details of CSR spent during the financial year.
Total amount to be spent for the financial year
Amount unspent, if any
` 22.79 crore
` 21.84 crore
Nil
Manner in which the amount spent during the financial year
is detailed below
50 I Board’s Report
The Tata Power Company Limited Sl.
No
CSR project or
activity
identified
Sector in which
the Project is
covered
Project or
Programs (1) Local
area or other (2)
Specify the
State and district
where projects or
programs were
undertaken
Amount
outlay
(budget)
project or
programs
wise
(` in lakh)
Amount
spent on the
projects or
programs
Sub-heads: (1)
Direct
Expenditure
on projects or
Programs (2)
Overheads
(` in lakh)
Amount spent:
Direct or through
implementing
agency
Cumulative
expenditure
upto the
reporting
period (as on
31.03.2017)
(` in lakh)
270
270
1,114 Direct :
Tata Power
Implementation
Agency Internal:
• Tata Power
Community
Development
Trust
(TPCDT)
• Employee
Volunteers
Implementation
Agency External:
• Government
Agencies
• Local
Panchayats
• Zilla Parishad
• NGOs
• Skill
Development
Agencies
• Other Resource
Agencies
307
307
1,082
669
669
2,503
i
ii
iii
Augmenting Primary
Education System
with emphasis on
Girl Child Education
(Focus Areas:
E-Learning, Adult
Literacy, Scholarships,
Special Coaching,
School Infrastructure,
Mainstreaming drop-
out students)
Building and
Strengthening
Health Care Facilities
including Safe
Drinking Water
(Focus Areas: Mobile
Health program,
Behaviour Change
Communication,
Safe Drinking Water
and Hygiene, Health
Infrastructure,
Women & Child
Health Awareness)
Enhancing Program
on
Livelihood and
Employability
(Focus Areas: Skill
Development,
Vocational training,
Promote Livelihood
practices among
farmers/ fishermen,
Income
Generation activities
for
Women Self Help
Groups)
Promotion of
Education
Promoting
Preventive
healthcare and
sanitation and
making available
safe drinking
water
Livelihood
enhancement
projects;
Promoting
gender equality,
empowering
women and
measures
for reducing
inequalities
faced by
socially and
economically
backward
groups
Local Areas:
• Maval, Mulshi
(Hydros)
• Trombay, T&D
License Area
• Jojobera
• Tiruldih, Naraj
Marthapur
• Haldia
• Dehrand
• Gadag, Khandke
• Supa, Agaswadi
• Poolavadi
• Samana
States:
• Maharashtra
• Jharkhand
• Odisha
• West Bengal
• Karnataka
• Tamil Nadu
• Gujarat
Districts:
• Pune
• Mumbai
• Singhbhum East
• Saraikela-
Kharsawan
• Cuttack
• Haldia
• Raigad
• Gadag
• Ahmednagar
• Satara
• Udumalpet
• Jamnagar
Board’s Report I 51
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE iv
v
Building Social
Capital and
Infrastructure
(Focus Areas:
Institution
Building, Participatory
Rural
Development Works,
Women
empowerment
training
programs)
Nurturing
Sustainability for
Inclusive Growth
(Focus Areas: Rural
Energy,
Promoting Sports/
Games,
Support in times of
Natural Calamity,
Tree plantation,
Employee
Volunteering)
Rural
development
projects;
Empowering
Women
Training to
promote
rural sports,
nationally
recognized
sports; Socio-
Economic
Development,
Club Enerji
vi
Community Welfare-
Others
Rural
Development
Projects
Total
Key Highlights of the CSR Program
222
222
1,479
365
460
1,167
351
351
948
2,184
2,279
8,293
•
•
•
•
•
•
The CSR programs had a coverage of 230 villages.
320 schools were covered benefitting 0.6 lakh school children.
Health programs were implemented in 167 villages covering 1.17 lakh beneficiaries.
Livelihood and Employability programs were run in 129 villages and 0.05 lakh residents covered.
Social Capital and Infrastructure - 46 villages / 0.08 lakhs household covered.
Nurturing sustainability covered 81 villages benefitting 0.42 lakh households.
Details of Education Initiatives:
•
•
•
•
Gender ratio of the locations covered by TPCDT is 50% as compared to national average of 48%.
Affirmative Action (AA) students covered during this financial year is 18% as compared to national average of 15%.
In locations where education programs are ongoing, learning levels are showing positive trends among children primary
schools.
Special focus for improvements are being provided through remedial classes, e- learning and teacher training programs.
52 I Board’s Report
The Tata Power Company Limited Details of Health and Water Initiatives:
•
•
•
•
•
•
Integrated health approach with emphasis on tie up with government facilities has been implemented.
Open Defecation Free Awareness Campaigns were organised at Jojobera covering nearly 5000 households.
Promotion of Yoga and Meditation for improvement of mental and overall health has been undertaken.
Community owned drinking water supply initiatives were initiated with sensitization on water, sanitation and hygiene; with
focus on prevention campaign for vector borne and water borne diseases. This has resulted in 72% reduction in water borne
diseases and 100% reduction in vector borne diseases in Dehrand.
164 awareness sessions on preventive health were also conducted to spread awareness about various diseases.
Zero waste initiative in Ambujwadi was started through involvement of Women SHGs touching 1700 households.
Details of Livelihood and Employability Initiatives:
•
•
•
•
•
•
•
Integrated agriculture initiatives at Maval, Jojobera, Mundra and Maithon covered 3371 beneficiaries having and
implementation area of 3100 acres.
Programs with emphasis on food security, reduction of input cost, waste land development were run through collective
farming, horticulture and vegetable farming.
As a benefit due to the programs, farmers in Maval recorded increase in yield by 35% per acre through system of Root
Intensification technique.
In Jojobera, a profit of ` 4.71 lakh was made on a 12 acre plot of land through collective farming in 2 cycles.
Significant reduction in input cost by 20% and water usages by 65% for agriculture purpose was recorded at Mundra.
Total 1047 youths were trained under skill development training which was 35% higher than previous year with a 77%
increase in female trainees and a 4% increase in AA trainees as compared to previous year.
61% placements were recorded of the trained youth with 48% earning salary between ` 8,000/- to ` 11,000/-.
Social Capital and Financial Inclusivity:
•
•
•
•
6
7
Total 537 Self Help Groups (SHG) were formed covering 6400 SHG members from 133 villages and a gross fund of ` 147 lakh
was mobilized.
42% women members of SHG were trained in income generation activities.
The women of SHGs supported each other during crisis situation by providing small loan facility at 1% per month as against
5% by local landlords. ` 76 lakh was raised for internal lending.
` 974 lakh of fund was mobilized through Government, community and other funding agencies.
In case the company has failed to spend the two percent of the average net profit of the
last three financial years or any part thereof, the company shall provide the reasons for
not spending the amount in its Board Report.
NA
A responsibility statement of the CSR Committee that the implementation and monitoring
of CSR policy, is in compliance with CSR objectives and Policy of the company.
Anjali Bansal
Chairperson, CSR Committee
(DIN: 00207746)
T h e i m p l e m e n t a t i o n a n d
monitoring of the CSR Policy is in
compliance with CSR objectives
and Policy of the Company.
Anil Sardana
CEO & Managing Director
(DIN: 00006867)
Board’s Report I 53
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Annexure – III : Policy on Board Diversity and Director Attributes
(Ref.: Board’s Report, Section 16)
Objective
The Policy on Board Diversity (‘the Policy’) sets out the approach to diversity on the board of directors (‘the Board’) of The Tata
Power Company Limited (‘the company’).
The company recognises that diversity at board level is a necessary requirement in ensuring an effective board. A mix of executive,
independent and other non-executive directors is one important facet of diverse attributes that the company desires. Further,
a diverse board representing differences in the educational qualifications, knowledge, experience, gender, age, thought and
perspective results in delivering a competitive advantage and a better appreciation of the interests of stakeholders. These
differences should be balanced against the need for a cohesive, effective board. All board appointments shall be made on
merit having regard to this policy.
Attributes of directors
The following attributes need to be considered in considering optimum board composition:
i)
Gender diversity
Having at least one woman director on the Board with an aspiration to reach three women directors.
ii)
Age
The average age of board members should be in the range of 60 - 65 years.
iii)
Competency
The board should have a mix of members with different educational qualifications, knowledge and with adequate
experience in finance, accounting, economics, legal and regulatory matters, the environment, green technologies,
operations of the company’s businesses, energy commodity markets and other disciplines related to the company’s
businesses.
iv)
Independence
The independent directors should satisfy the requirements of the Companies Act, 2013 (the Act) and the Securities
and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 in respect of the
‘independence’ criterion.
Additional Attributes
•
•
•
•
•
The directors should not have any other pecuniary relationship with the company, its subsidiaries, associates
or joint ventures and the company’s promoters, besides sitting fees and commission.
The directors should not have any of their relatives (as defined in the Act and Rules made thereunder) as directors
or employees or other stakeholders (other than with immaterial dealings) of the company, its subsidiaries,
associates or joint ventures.
The directors should maintain an arm’s length relationship between themselves and the employees of the
company, as also with the directors and employees of its subsidiaries, associates, joint ventures, promoters and
stakeholders for whom the relationship with these entities is material.
The directors should not be the subject of allegations of illegal or unethical behaviour, in their private or
professional lives.
The directors should have ability to devote sufficient time to the affairs of the Company.
Role of the Nomination and Remuneration Committee
The Nomination and Remuneration Committee (‘the NRC’) shall review and assess board composition whilst recommending
the appointment or reappointment of independent directors.
Review of the Policy
The NRC will review this policy periodically and recommend revisions to the board for consideration.
1.
1.1
1.2
2.
2.1
3.
3.1
4.
4.1
54 I Board’s Report
The Tata Power Company Limited
Annexure – IV : Remuneration Policy for Directors, Key Managerial Personnel and other Employees
(Ref.: Board’s Report, Section 16)
The philosophy for remuneration of directors, Key Managerial Personnel (“KMP”) and all other employees of The Tata Power Company
Limited (“company”) is based on the commitment of fostering a culture of leadership with trust. The remuneration policy is aligned
to this philosophy.
This remuneration policy has been prepared pursuant to the provisions of Section 178(3) of the Companies Act, 2013 (“Act”) and
Regulation 19 read with Part D of Schedule II of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Listing Regulations). In case of any inconsistency between the provisions of law and this remuneration
policy, the provisions of the law shall prevail and the company shall abide by the applicable law. While formulating this policy, the
Nomination and Remuneration Committee (“NRC”) has considered the factors laid down under Section 178(4) of the Act, which are
as under:
“(a)
the level and composition of remuneration is reasonable and sufficient to attract, retain and motivate directors of the quality
required to run the company successfully;
(b)
(c)
relationship of remuneration to performance is clear and meets appropriate performance benchmarks; and
remuneration to `s, key managerial personnel and senior management involves a balance between fixed and incentive pay
reflecting short and long-term performance objectives appropriate to the working of the company and its goals.”
Key principles governing this remuneration policy are as follows:
•
Remuneration for independent directors and non-independent non- executive directors
o
o
o
o
o
o
o
o
o
Independent directors (“ID”) and non-independent non-executive directors (“NED”) may be paid sitting fees (for attending
the meetings of the Board and of committees of which they may be members) and commission within regulatory limits.
Within the parameters prescribed by law, the payment of sitting fees and commission will be recommended by the
NRC and approved by the Board.
Overall remuneration (sitting fees and commission) should be reasonable and sufficient to attract, retain and motivate
directors aligned to the requirements of the company (taking into consideration the challenges faced by the company
and its future growth imperatives).
Overall remuneration should be reflective of size of the company, complexity of the sector/ industry/ company’s
operations and the company’s capacity to pay the remuneration.
Overall remuneration practices should be consistent with recognized best practices.
Quantum of sitting fees may be subject to review on a periodic basis, as required.
The aggregate commission payable to all the NEDs and IDs will be recommended by the NRC to the Board based on
company performance, profits, return to investors, shareholder value creation and any other significant qualitative
parameters as may be decided by the Board.
The NRC will recommend to the Board the quantum of commission for each director based upon the outcome of the
evaluation process which is driven by various factors including attendance and time spent in the Board and committee
meetings, individual contributions at the meetings and contributions made by directors other than in meetings.
In addition to the sitting fees and commission, the company may pay to any director such fair and reasonable expenditure,
as may have been incurred by the director while performing his/her role as a director of the company. This could
include reasonable expenditure incurred by the director for attending Board/ Board committee meetings, general
meetings, court convened meetings, meetings with shareholders/ creditors/ management, site visits, induction and
training (organised by the company for directors) and in obtaining professional advice from independent advisors in
the furtherance of his/ her duties as a director.
•
Remuneration for managing director (“MD”)/ executive directors (“ED”)/ KMP/ rest of the employees1
o
The extent of overall remuneration should be sufficient to attract and retain talented and qualified individuals suitable
for every role. Hence remuneration should be:
•
Market competitive (market for every role is defined as companies from which the company attracts talent or
companies to which the company loses talent).
1 Excludes employees covered by any long term settlements or specific term contracts. The remuneration for these employees would be driven by the respective
long term settlements or contracts.
Board’s Report I 55
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE •
•
•
•
Driven by the role played by the individual.
Reflective of size of the company, complexity of the sector/ industry/ company’s operations and the company’s
capacity to pay.
Consistent with recognized best practices.
Aligned to any regulatory requirements.
o
In terms of remuneration mix or composition:
•
•
•
•
•
•
The remuneration mix for the MD/ EDs is as per the contract approved by the shareholders. In case of any
change, the same would require the approval of the shareholders.
Basic/ fixed salary is provided to all employees to ensure that there is a steady income in line with their skills
and experience.
In addition to the basic/ fixed salary, the company provides employees with certain perquisites, allowances
and benefits to enable a certain level of lifestyle and to offer scope for savings and tax optimization, where
possible. The company also provides all employees with a social security net (subject to limits) by covering
medical expenses and hospitalisation through re-imbursements or insurance cover and accidental death and
dismemberment through personal accident insurance.
The company provides retirement benefits as applicable.
In addition to the basic/ fixed salary, benefits, perquisites and allowances as provided above, the company
provides MD/ EDs such remuneration by way of commission, calculated with reference to the net profits of
the company in a particular financial year, as may be determined by the Board, subject to the overall ceilings
stipulated in Section 197 of the Act. The specific amount payable to the MD/ EDs would be based on performance
as evaluated by the Board or the NRC and approved by the Board.
The company provides the rest of the employees a performance linked bonus. The performance linked bonus
would be driven by the outcome of the performance appraisal process and the performance of the company.
•
Remuneration payable to Director for services rendered in other capacity
The remuneration payable to the Directors shall be inclusive of any remuneration payable for services rendered by such director
in any other capacity unless:
a)
b)
The services rendered are of a professional nature; and
The NRC is of the opinion that the director possesses requisite qualification for the practice of the profession.
•
Policy implementation
The NRC is responsible for recommending the remuneration policy to the Board. The Board is responsible for approving and
overseeing implementation of the remuneration policy.
56 I Board’s Report
The Tata Power Company Limited
Annexure – V: Conservation of Energy and Technology Absorption
(Ref.: Board’s Report, Section 18)
A.
CONSERVATION OF ENERGY
i.
The steps taken or impact on conservation of energy:
Your Company considers it important to manage the continuously rising demand by creating an environment for
efficient use of power.
Your Company has developed programmes for different types of consumers. For residential consumers in Mumbai, your
Company launched a unique consumer initiative called “Be Green”. This initiative gave an opportunity to the Company’s
consumers to exchange their inefficient electrical appliances for 5 star rated energy efficient appliances at a discounted
price. This initiative helps to reduce consumers’ energy cost by 30% to 50% without compromising on their comfort
and convenience. The Company has partnered with leading consumer appliance manufacturers for energy efficient
equipment. Your Company has encouraged consumers to opt for paperless e-billing in FY17. Over 17,500 consumers
have opted for e-billing.
The Company also facilitated the implementation of National-level DELP / UJALA program in Mumbai. The DELP/UJALA
program has witnessed the distribution of more than 1.1 lakh LED Bulbs for Tata Power consumers in Mumbai during
FY17.
Your Company carried out energy audits for industrial and commercial consumers. The experts mapped their unique
power consumption pattern and offered specific recommendations to improve the process and equipment efficiency.
Further, following specific items are being pursued:
•
•
•
•
•
•
•
•
Installation of clamp-on device on Wind Turbine Generators (WTG) for fine tuning orientation to wind direction
to enhance power generation for the given set of parameters.
Higher capacity WTGs to increase the total generation potential for a given site.
Installation of remote monitoring system for WTG and solar assets for efficient operation and maintenance to
increase generation for a given set of conditions.
Reduction in auxiliary consumption using VFD in coal feeding system and LPBFP system at Trombay.
Replacement of HPSV lamps and traditional tube lights by LED lamps and tubes in Haldia.
At Maithon, in a section of internal roads, high masts and operational area of boiler and coal mill LED lights and
solar lights have replaced conventional lamps resulting in substantial savings in energy consumption.
Installation of solar powered warning lights for excavation barricades instead of DG sets to reduce emission as
well as noise pollution.
Plantation of aloe vera below solar modules to reduce effect of temperature on solar modules, thereby improving
operational efficiency.
Also, to ensure optimum power use in new plants, the process of technical evaluation includes review of energy
consumption which forces energy efficient equipment to be offered by bidders.
ii.
The steps taken by the Company for utilising alternate sources of energy:
Your Company (including its subsidiaries) has nearly 30% of capacity (in MW terms) through clean and green sources
(Hydro, Wind, Solar and Waste Heat Recovery). Capacity addition in renewable generation as well as increasing efficiency
and availability of existing renewable assets, continue to be a focus area of your Company.
Your Company has developed kW Scale DDG Solutions such as:
•
•
•
•
•
Small scale hydrokinetic turbine and evacuation to the grid for flowing water streams.
Waste biomass based pellets for combustion and substitution of fire wood.
Demonstrated heat pump for higher efficiency of energy use.
Indigenization of multi-fuel steam generation system, indigenization of high efficiency gasification system.
Ash Utilization - Fly ash based paint, geopolymeric cement.
Board’s Report I 57
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
iii.
The capital investment on energy conservation equipment:
•
•
•
•
Use of superior thermal technology like supercritical boilers at CGPL.
Installation of 100 kW in-pipe micro hydro turbines at tail race of Bhivpuri hydro power station.
Installation of energy meters in all critical 6.6 kV drives and transformers at Haldia station for choosing efficient
combinations of drives and conserving energy.
Provision of cooling water interconnection line has optimized the operation of cooling water pumps and has
resulted in significant savings in auxiliary power consumption at IEL-Kalinganagar Station.
B.
RESEARCH AND DEVELOPMENT
1
Specific area in which
R&D carried out by
the Company
2
Benefits derived as
a result of the above
R&D
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Electric breech opening device, end-to-end loading system, opto-electronics system
payload and long range observation system and steer and drive-by-wire for 155/52cal
howitzer.
Indigenous electric linear actuator and hand crankers for outriggers and swivelling type
light weight jet deflector for mobile launcher system.
Dual axis antenna alignment unit and solar tracker.
Frequency hopping algorithm and associated synch methodology for radios.
FPGA based indigenous random number generator.
LTE base station, LTE UE stacks and SDR components.
Fog vision and driver’s night vision system.
Fuel cells.
Artificial intelligence and big data based audio analytics solution for multiple languages.
Unmanned remote controlled turret and RWS using all electric drives for AFVs.
Thermal imaging engine, infra-red lens and multifunction hand held thermal imagers.
Battery management system inbuilt with algorithms for effective cell balancing and fast
charging of the lithium iron phosphate batteries.
Indigenous secure and trustworthy solutions for battlefield management system, tactical
communication system, combat vehicles, gun programs and launcher program.
Tata Power’s unique selling point in border surveillance programs for MoD (Ministry of
Defence) and MHA (Ministry of Home Affairs) security projects.
Ability to address telecom market.
Products for clean energy market expedited by Ministry of New and Renewable Energy
(MNRE).
Down selection for the make programs of tactical communication system, battlefield
management system.
Defence Research and Development Organisation (DRDO) choosing SED as partner for
Advanced Towed Artillery Gun System (ATAGS) development and successful engineering
firing trials. Our gun was displayed in the Republic Day Parade 2017.
Successful Proof of Concept (POC) demos and No Cost – No Commitment (NC-NC) trials.
3
Future Plan of Action •
User trials and field deployment in various MoD, MHA and adjacent market programmes.
58 I Board’s Report
The Tata Power Company Limited C.
TECHNOLOGY ABSORPTION
1
Efforts, in brief, made towards Technology Absorption,
adaptation and innovation
•
•
Fly Ash based paint.
Indigenization of multi-fuel steam generation.
• Geopolymeric cement from fly ash.
• Utilization of ash in Composites.
•
Till last year, SED had filed 12 patents out of which 4
have been granted. In addition, 3 have been filed in
FY17 of those innovations which have dual use.
2
Benefits derived as a result of the above efforts
• Help achieving goal of 100% ash utilisation.
3
In case of imported technology (imported during the last
five years reckoned from the beginning of the financial year),
following information may be furnished:
a) Technology Imported
b) Year of Import
c) Has technology been fully absorbed
• Helps in indigenisation of critical technologies thus
managing risk of technology denial from foreign OEMs
and works towards achieving Government of India’s
goal of creating substantive self-reliance in defence
system development and production.
a)
Inertial Navigation System (INS) from Honeywell, USA.
b) FY15
c) Technology was validated in pilot projects during FY16
and FY17.
d)
If not fully absorbed, areas where this has not taken
place, reasons thereof and future plans of action
d) Technology to go for manufacturing.
4
Expenditure on R & D (in ` crore)
a) Capital
b) Recurring
a) Clean Tech ` 1.84 crore
SED ` 127.04 crore
b) Clean Tech ` 1.62 crore
SED -
Total ` 130.50 crore
GENERATION BUSINESS
•
•
•
•
•
•
•
•
•
•
Design, fabrication installation and commissioning of ‘power plant chimney painting robot’ and usage of drone camera in
boiler wall tube inspection in Trombay.
Implemented tracking of coal logistics system by integrating RFID, GPS, traffic light and SAP systems, phased array testing of
turbine blades and online condenser tube leak detection system to reduce downtime.
Installed LiDar calibration instrument to correct the yaw angle misalignment and improve conversion efficiency of wind turbines.
Modified Solar PV structures to have additional tilt angles and reduce pointing error for improving operational efficiency.
Use of coal flame spectrum scanner technology to measure both Visible and Infrared spectrum, thereby increasing flame
reliability at Jojobera.
LPBP spray water logic modification was introduced at MPL which has resulted in significant reduction in auxiliary power
consumption.
Periodical online condenser back flushing process was introduced in Haldia to sustain condenser performance, leading to
reduction in unscheduled outages and improvement in overall performance of the unit.
Anti-tracking spray applied to exposed battery terminals to eliminate chances of electrical shock at battery terminals in Trombay
and improving safety.
Enhanced CCTV surveillance (with remote thermos-vision cameras) inside plant area for round the clock monitoring at Trombay.
Use of non-explosive compounds for breaking clinker inside the boiler during scheduled outage at Trombay improving safety
at site.
Board’s Report I 59
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE TRANSMISSION AND DISTRIBUTION BUSINESS
•
•
•
•
•
To overcome space constraints in Mumbai, Tata Power has commissioned the first Multi Civic Amenities (MCA) substation of
the city.
First two tier distribution substation having ester filled power transformer on ground floor and HT & LT switchgear, auxiliaries
on 2nd tier installed in Mumbai.
Installation of tamper proof feeder pillars at slums to avoid illegal use for tapping of power supply
Smart asset tracking using LoRA and RFID.
Digitalization of business processes and customer integration achieved.
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
Mumbai, 19th May 2017
60 I Board’s Report
The Tata Power Company Limited Annexure – VI : Disclosure of Managerial Remuneration
(Ref.: Board’s Report, Section 19)
a)
The ratio of the remuneration of each director to the median remuneration of the employees of the Company for the financial
year:
Name of Director
Ratio of Director’s remuneration to the median
remuneration of the employees of the Company for the
financial year
Mr. N. Chandrasekaran (w.e.f. 11.02.2017)
Mr. S. Padmanabhan (w.e.f. 16.12.2016)
Dr. Homiar S. Vachha
Mr. Nawshir H. Mirza
Mr. Deepak M. Satwalekar
Mr. Pravin H. Kutumbe
Ms. Sandhya S. Kudtarkar (w.e.f. 16.04.2016)
Ms. Anjali Bansal (w.e.f. 14.10.2016)
Ms. Vibha Padalkar (w.e.f. 14.10.2016)
Mr. Sanjay V. Bhandarkar (w.e.f. 14.10.2016)
Mr. Anil Sardana, CEO and Managing Director
Mr. Ashok S. Sethi, COO and Executive Director
Mr. Piyush G. Mankad (upto 17.11.2016)
Mr. Cyrus P. Mistry (upto 19.12.2016)
Mr. Ashok K. Basu (upto 23.03.2016)
N.A.
1.39
6.35
10.00
8.74
1.51
1.48
1.53
2.24
1.29
74.17
30.38
2.67
0.37
1.94
b)
The percentage increase in remuneration of each director, Chief Financial Officer, Chief Executive Officer, Company Secretary
or Manager, if any, in the financial year:
Name of Director and Key Managerial Personnel
Percentage increase in remuneration in the financial
year
Mr. N. Chandrasekaran (w.e.f. 11.02.2017)
Mr. S. Padmanabhan (w.e.f. 16.12.2016)
Dr. Homiar S. Vachha
Mr. Nawshir H. Mirza
Mr. Deepak M. Satwalekar
Mr. Pravin H. Kutumbe
Ms. Sandhya S. Kudtarkar (w.e.f. 16.04.2016)
Ms. Anjali Bansal (w.e.f. 14.10.2016)
Ms. Vibha Padalkar (w.e.f. 14.10.2016)
Mr. Sanjay V. Bhandarkar (w.e.f. 14.10.2016)
Mr. Anil Sardana, CEO and Managing Director (KMP)
Mr. Ashok S. Sethi, COO and Executive Director (KMP)
Mr. Piyush G. Mankad (upto 17.11.2016)
Mr. Cyrus P. Mistry (upto 19.12.2016)
Mr. Ashok K. Basu (upto 23.03.2016)
Mr. Ramesh N. Subramanyam, Chief Financial Officer (KMP)
Mr. Hanoz M. Mistry, Company Secretary (KMP)
N.A.
N.A.
-39
13
-12
76
N.A.
N.A.
N.A.
N.A.
19
16
-38
-24
-39
5
6
Board’s Report I 61
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE c)
d)
e)
The percentage increase in the median remuneration of employees in the financial year: 9.85%
The number of permanent employees on the rolls of the company: 3,967
Average percentile increase already made in the salaries of employees other than the managerial personnel in the last financial
year, its comparison with the percentile increase in the managerial remuneration, justification thereof and point out if there
are any exceptional circumstances for increase in the managerial remuneration:
Average increase in remuneration of Managers (defined as MD and ED on the Board of your Company) was 17.40%. For employees
of Tata Power, the median increase was 9.85%.
f )
Affirmation that the remuneration is as per the remuneration policy of the Company:
It is affirmed that the remuneration is as per the ‘Remuneration Policy for Directors, Key Managerial Personnel and other
employees’ adopted by the Company.
Mumbai, 19th May 2017
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
62 I Board’s Report
The Tata Power Company Limited Annexure – VII : Related Party Transactions
(Ref.: Board’s Report, Section 20)
FORM No. AOC-2
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
[Pursuant to clause (h) of sub-section (3) of z4 of the Act and Rule 8(2) of the Companies (Accounts) Rules, 2014)]
1.
Details of contracts or arrangements or transactions not at arm’s length basis:
Name(s) of
the related
party and
nature of
relationship
Nature of
contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Support to CGPL One year
Coastal Gujarat
Power Limited
(CGPL)
(subsidiary)
Mr. Anil
Sardana, CEO
and Managing
Director (KMP)
Agreement
with CEO and
Managing
Director
1st February
2016 to 31st
January 2021
Justification for
entering into
such contracts or
arrangements or
transactions
Date(s) of
approval
by the
Board
Amount
paid as
advances,
if any
Date on
which the
special
resolution
was passed
in general
meeting
as required
under first
proviso to
Section 188
23.05.2016
Nil
N.A.
CGPL had been
continuously
making losses
for the last three
years since
commencement
of operations. This
has eroded its
net worth. CGPL
was also in no
position to bear
this additional
burden of interest
/ commission to
Tata Power.
Agreement with
CEO and Managing
Director.
29.03.2016
Nil
N.A.
Salient terms
of the
contracts or
arrangements
or transactions
including the
value, if any
Waiver from
charging any
Interest /
Commission
on Shareholder
Loan / Inter
Corporate
Deposit /
Sub-debt and
Corporate
Guarantee /
Share Pledge
extended / to
be extended
for FY 17 by
the Company
to CGPL for
availing debt
facilities.
Terms and
conditions of
appointment
and
remuneration
of Mr. Anil
Sardana as CEO
and Managing
Director of the
Company for
the period from
1st February
2016 to 31st
January 2021.
Board’s Report I 63
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Name(s) of
the related
party and
nature of
relationship
Nature of
contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms
of the
contracts or
arrangements
or transactions
including the
value, if any
Justification for
entering into
such contracts or
arrangements or
transactions
Date(s) of
approval
by the
Board
Amount
paid as
advances,
if any
Date on
which the
special
resolution
was passed
in general
meeting
as required
under first
proviso to
Section 188
Forbes
Technosys
Limited
One year
Annual
Maintenance
Contract (AMC)
of 26 Kiosks and
25 i-Ball Tablets
Mr. Anil
Sardana, CEO
and Managing
Director (KMP)
Leave and
Licence
Agreement
Long term
effective 1st
April 2016
29.11.2016
Nil
N.A.
29.11.2016
Nil
N.A.
With a view
to maintain
the machines
embedded
in Consumer
Interface Kiosks,
AMC was required
to be placed on
OEM.
The user division
was highly
satisfied with the
upkeep of these
tablets.
Leave and License
Agreement
with CEO and
Managing
Director for using
the Company’s
premises for his
residence.
AMC of
26 Kiosks
amounting
to ₹ 3.08 lakh
(excluding
taxes).
AMC of 25
i-Ball Tablets
amounting
to ₹ 57,000
(excluding
taxes).
Leave and
License
Agreement
with CEO and
Managing
Director for
using the
Company’s
premises for
his residential
purposes.
2.
Details of material contracts or arrangement or transactions at arm’s length basis:
Name(s) of the
related party and
nature of
relationship
Nature of contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms of
the contracts or
arrangements
or transactions
including the value,
if any
Date(s) of approval
by the Board, if any
Amount
paid as
advances, if
any
There are no material contracts or arrangements or transactions at arm’s length basis
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
Mumbai, 19th May 2017
64 I Board’s Report
The Tata Power Company Limited
Annexure – VIII : Extract of Annual Return
(Ref.: Board’s Report, Section 23)
FORM No.MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March 2017
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1)
of the Companies (Management and Administration) Rules, 2014]
I.
REGISTRATION AND OTHER DETAILS:
i)
ii)
iii)
iv)
v)
vi)
vii)
CIN: L28920MH1919PLC000567
Registration Date: 18th September 1919
Name of the Company: The Tata Power Company Limited
Category / Sub-Category of the Company: Public Company limited by shares
Address of the Registered office and contact details: Bombay House, 24, Homi Mody Street, Mumbai - 400 001.
Tel.: 022 6665 8282 Fax: 022 6665 8801 E-mail: tatapower@tatapower.com Website: www.tatapower.com
Whether listed company: Yes
Name, Address and Contact details of Registrar and Transfer Agent, if any:
TSR Darashaw Limited
6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011.
Tel.: 022 6656 8484 Fax.: 022 6656 8494 E-mail: csg-unit@tsrdarashaw.com Website: www.tsrdarashaw.com
II.
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl. No.
Name and Description of
main products / services
NIC Code of the
Product/ service
% to total turnover
of the company
1
Power Supply & Transmission charges
3510
75%
III.
PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES-
Sl.
No.
1
2
3
4
5
6
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
Chemical Terminal Trombay Ltd.
Pir Pav Installation, Near MbPT Pump House,
Behind Tata Power Company Unit 5, Chembur,
Mumbai 400 074
Af-Taab Investment Co. Ltd.
Corporate Centre, B Block, 34, Sant Tukaram
Road, Carnac Bunder, Mumbai 400 009
Tata Power Trading Co. Ltd.
Carnac Receiving Station, 34, Sant Tukaram
Road, Carnac Bunder, Mumbai 400 009
Powerlinks Transmission Ltd.
10th Floor, DLF Tower-A, District Center-Jasola,
New Delhi 110 025
Maithon Power Ltd.
Corporate Center, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400 009
NELCO Ltd.
MIDC, Plot No. EL 6, TTC Industrial Area,
Electronics Zone, Mahape, Navi Mumbai 400 710
U63020MH1970PLC014572
Subsidiary
100
U65990MH1979PLC021037
Subsidiary
100
U40100MH2003PLC143770
Subsidiary
100
U40105DL2001PLC110714
Subsidiary
U74899MH2000PLC267297
Subsidiary
51
74
L32200MH1940PLC003164
Subsidiary
50.04
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Board’s Report I 65
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Tatanet Services Ltd.
MIDC, Plot No. EL 6, TTC Industrial Area,
Electronics Zone, Mahape, Navi Mumbai 400 710
Nelco Network Products Ltd.
EL-6, TTC Industrial Area, MIDC, Mahape,
Navi Mumbai 400 710
Industrial Energy Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Industrial Power Utility Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Tata Power Delhi Distribution Ltd.
NDPL House, Hudson Lines, Kingsway Camp,
Delhi 110 009
NDPL Infra Ltd.
Jeevan Bharati Tower #1, 10th Floor, 124,
Connaught Circus, New Delhi 110 001
Coastal Gujarat Power Ltd.
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Tata Power Renewable Energy Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Tata Power Green Energy Ltd.
B Block, Corporate Centre, 34, Sant Tukaram
Road, Carnac Bunder, Mumbai 400 009
Supa Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Nivade Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Poolavadi Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre, A
Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Indo Rama Renewables Jath Ltd.
H No.513, Sector 22, Gurgaon 122 015
Vagarai Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Renewables Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
U67120MH1987PLC044351
Subsidiary
50.04
U32309MH2016PLC285693
Subsidiary
50.04
U74999MH2007PLC167623
Subsidiary
74
U74999MH2007PLC168291
Subsidiary
100
U40109DL2001PLC111526
Subsidiary
U40106DL2011PLC223982
Subsidiary
51
51
U40102MH2006PLC182213
Subsidiary
100
U40108MH2007PLC168314
Subsidiary
100
U40108MH2011PLC211851
Subsidiary
100
U40300MH2015PLC270878
Subsidiary
100
U40300MH2015PLC271114
Subsidiary
100
U40300MH2016PLC271899
Subsidiary
100
U40300HR2012PLC046057
Subsidiary
U40106MH2017PLC291708
Subsidiary
100
100
U40103MH2009PTC197021
Subsidiary
100
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
66 I Board’s Report
The Tata Power Company Limited Sl.
No.
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Clean Sustainable Solar Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Dreisatz Mysolar 24 Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
MI Mysolar24 Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
Northwest Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Solarsys Renewable Energy Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
Unity Power Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Viraj Renewables Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Energy Jharkhand Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Energy Maharashtra Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Energy Rajasthan Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
Welspun Solar AP Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Solar Kannada Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Solar Madhya Pradesh Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Solar Punjab Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
U40300MH2014PTC254371
Subsidiary
99.99
U40102DL2009PTC195082
Subsidiary
73.60
U40106DL2009PTC195090
Subsidiary
74
U40108MH2008PTC182762
Subsidiary
100
U74999DL2004PTC131074
Subsidiary
72.50
U40104MH2008PTC184134
Subsidiary
74
U40105MH2010PTC202097
Subsidiary
100
U40106MH2010PTC209615
Subsidiary
100
U40108MH2006PTC165673
Subsidiary
100
U40108DL2006PTC274219
Subsidiary
100
U40109MH2008PTC178769
Subsidiary
100
U40300MH2012PTC233418
Subsidiary
100
U40106MH2010PTC206275
Subsidiary
100
U40300DL2010PTC274220
Subsidiary
100
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Board’s Report I 67
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
Welspun Solar Rajasthan Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Solar Tech Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
Welspun Solar UP Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Welspun Urja Gujarat Pvt. Ltd.
C-14, Lower Ground Floor, Chirag Enclave,
Greater Kailash - 1, New Delhi 110 048
Welspun Urja India Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Dugar Hydro Power Ltd.
Santosh Bhavan, 1st Floor, Near Govt. Middle
School, Mehli, PO Kasumpti, Shimla 171 009
Tata Power Solar Systems Ltd.
Plot No.78, Electronic City, Hosur Road,
Bengaluru 560 100
Chirasthayee Saurya Limited
No.78, Electronic City, Hosur Road,
Bangalore 560 100
Tata Power Jamshedpur Distribution Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre, A
Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Tata Ceramics Ltd.
26 Cochin Special Economic Zone, Kakkanaad,
Ernakulam 682 037
Bhira Investments Ltd.
IFS Court, Bank Street, Twenty Eight, Cybercity
Ebene 72201, Republic of Mauritius
Bhivpuri Investments Ltd.
IFS Court, Bank Street, Twenty Eight, Cybercity
Ebene 72201, Republic of Mauritius
Khopoli Investments Ltd.
IFS Court, Bank Street, Twenty Eight, Cybercity
Ebene 72201, Republic of Mauritius
Trust Energy Resources Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 079120
Energy Eastern Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 079120
PT Sumber Energi Andalan Tbk.
Prince Centre 8th Floor, JI. Jend. Sudirman Kav
3-4, Jakarta 10220, Indonesia
U40105MH2010PTC206475
Subsidiary
100
U40106DL2010PTC277364
Subsidiary
100
U40300MH2011PTC213470
Subsidiary
100
U40300DL2010PTC282627
Subsidiary
100
U40109MH2006PLC165964
Subsidiary
100
U40101HP2011PLC031626
Subsidiary
50.001
U40106KA1989PLC034989
Subsidiary
100
U40101KA2016PLC094100
Subsidiary
100
U40300MH2012PLC237581
Subsidiary
100
U26933KL1991PLC006018
Subsidiary
57.07
Not applicable, foreign company
Subsidiary
100
Not applicable, foreign company
Subsidiary
100
Not applicable, foreign company
Subsidiary
100
Not applicable, foreign company
Subsidiary
Not applicable, foreign company
Subsidiary
100
100
Not applicable, foreign company
Subsidiary
94.61
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
Section
2(87)
68 I Board’s Report
The Tata Power Company Limited Sl.
No.
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
Tata Power International Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 079120
Tubed Coal Mines Ltd.
Century Bhavan, 3rd Floor, Dr. Annie Besant Road,
Worli, Mumbai 400 030
Mandakini Coal Company Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110 070
Solace Land Holding Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110 070
Gamma Land Holding Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110 070
Beta Land Holding Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110 070
Ginger Land Holding Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110 070
Yashmun Engineers Ltd.
Dharavi Road, Next to MSEB, Matunga,
Mumbai 400 019
Panatone Finvest Ltd.
Bombay House, 24, Homi Mody Street,
Mumbai 400 001
Tata Projects Ltd.
Mithona Towers-1, 1-7-80 to 87, Prenderghast
Road, Secunderabad, Hyderabad 500 003
The Associated Building Co. Ltd.
Bombay House, 24, Homi Mody Street,
Mumbai 400 001
Brihat Trading Pvt. Ltd.
Bank of Baroda Building, Bombay Samachar
Marg, Mumbai 400 001
Nelito Systems Ltd.
205-208, Millennium Business Park, Building 2,
Sector 1, Mahape, Navi Mumbai 400 701
Cennergi Pty. Ltd.
Block A, Ground Floor, Lakefield Office Park, 272
West Avenue, Centurion 0157, South Africa
Tsitsikamma Community Wind Farm (Pty.) Ltd.
Block A, Ground Floor, Lakefield Office Park, 272
West Avenue, Centurion 0157, South Africa
Amakhala Emoyeni RE Project 1 (Pty.) Ltd.
Block A, Ground Floor, Lakefield Office Park, 272
West Avenue, Centurion 0157, South Africa
PT Mitratama Perkasa
Gedung Gelael – Jl. Falatehan No. 35-36,
Kebayoran Baru, Jakarta 12160, Indonesia
Not applicable, foreign company
Subsidiary
100
Section
2(87)
U10100MH2007PLC174466
Associate
40
Section 2(6)
U10100DL2008PLC175417
Associate
33.33
Section 2(6)
U70109DL2012PLC242177
Associate
33.33
Section 2(6)
U70109DL2012PLC242303
Associate
33.33
Section 2(6)
U70100DL2012PLC245127
Associate
33.33
Section 2(6)
U70109DL2012PLC245128
Associate
33.33
Section 2(6)
U29100MH1966PLC006109
Associate
27.27
Section 2(6)
U67120MH1992PLC066160
Associate
39.98
Section 2(6)
U45203TG1979PLC057431
Associate
47.78
Section 2(6)
U45200MH1921PLC000866
Associate
33.14
Section 2(6)
U51900MH1988PTC049926
Associate
33.21
Section 2(6)
U72900MH1995PLC088816
Associate
28.15
Section 2(6)
Not applicable, foreign company
Associate
50
Section 2(6)
Not applicable, foreign company
Associate
50
Section 2(6)
Not applicable, foreign company
Associate
50
Section 2(6)
Not applicable, foreign company
Associate
28.38
Section 2(6)
Board’s Report I 69
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
69
70
71
72
73
74
75
76
77
78
79
80
81
82
PT Mitratama Usaha
Gedung Gelael – Jl. Falatehan No. 35-36,
Kebayoran Baru, Jakarta 12160, Indonesia
PT Arutmin Indonesia
14th Floor, Bakrie Tower Complex, Rasuna
Epicentrum, Jalan H.R. Rasuna Said,
Jakarta 12940, Indonesia
PT Kaltim Prima Coal
Bakrie Tower, 15th Floor, JI. H.R. Rasuna Said,
Kel. Karet Kuningan Kec. Setiabudi, Jakarta
Selatan, Indonesia 12940
Indocoal Resources (Cayman) Ltd.
P.O. Box 309GT, Ugland House, South Church
Street, George Town, Grand Cayman,
Cayman Islands
Indocoal KPC Resources (Cayman) Ltd.
Citco Trustees (Cayman) Limited, 89 Nexus Way,
Camana Bay, P.O. Box 31106, Grand Cayman KY1-
1205, Cayman Islands
PT Indocoal Kalsel Resources
Bakrie Tower, 12th floor, Rasuna Epicentrum
Jl. H.R. Rasuna Said, Jakarta,
Indonesia 12940
PT Indocoal Kaltim Resources
Bakrie Tower, 12th floor, Rasuna Epicentrum
Jl. H.R. Rasuna Said, Jakarta,
Indonesia 12940
Dagachhu Hydro Power Corporation Ltd.
Khebisa, Dzongkhang: Dagana, Bhutan
Candice Investments Pte. Ltd.
60 Paya Lebar Road, #08-43 Paya Lebar Square,
Singapore 409051
PT Nusa Tambang Pratama
Menara Anugrah, 12th Floor Kantor Taman
E3.3, Lot. 8.6-8.7, Jl. DR Ide Anak Agung Gde
Agung, Kawasan Mega Kuningan, Jakarta 12950,
Indonesia
PT Marvel Capital Indonesia
Gedung Gelael, Jl. Falatehan I No.34-36,
Kebayoran Baru, Jakarta Selatan 12160,
Indonesia
PT Dwikarya Prima Abadi
Gedung Gelael, Jl. Falatehan I No.34-36,
Kebayoran Baru, Jakarta Selatan 12160,
Indonesia
PT Kalimantan Prima Power
Gd. Menara Duta Lt. 2 Wing A
Jl. H. R. Rasuna Said Kav. B-9 Setibudi, Jakarta
Selatan 12910
PT Guruh Agung
Gd. Graha Kapital Lt. 2, Jl. Kemang Raya No. 4
Bangka, Jakarta Selatan
Not applicable, foreign company
Associate
28.38
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
Not applicable, foreign company
Associate
26
30
Section 2(6)
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
70 I Board’s Report
The Tata Power Company Limited Sl.
No.
83
84
85
86
87
88
89
90
91
92
93
Name and Address of the Company *
CIN/GLN
Holding/
Subsidiary/
Associate
% of shares
held *
Applicable
Section
PT Citra Prima Buana
Gd. Menara Duta Lt. 2 Wing A, Jl. H. R. Rasuna
Said Kav. B-9 Setibudi, Jakarta Selatan 12910
PT Citra Kusuma Perdana
Gd. Menara Duta Lt. 2 Wing A,Jl. H. R. Rasuna
Said Kav. B-9 Setibudi, Jakarta Selatan 12910
PT Baramulti Sukessarana Tbk
Sahid Sudirman Center, 56C, Jl. Jendral Sudirman
Kav. 86, Jakarta 10220, Indonesia
PT Antang Gunung Meratus
Sahid Sudirman Center, 56C, Jl. Jendral Sudirman
Kav. 86, Jakarta 10220, Indonesia
Adjaristsqali Netherlands B.V.
Luna Arena, Herikerbergweg 238, 1101
CM Amsterdam, P.O. Box 23393, 1100 DW
Amsterdam, The Netherlands
Adjaristsqali Georgia LLC
6, I. Abashidze Str., Ap 2-3, Batumi, 6010, Georgia
Koromkheti Netherlands B.V.
Luna Arena, Herikerbergweg 238, 1101
CM Amsterdam, P.O. Box 23393, 1100 DW
Amsterdam, The Netherlands
Koromkheti Georgia L.L.C
6, I. Abashidze Str., Ap 2-3, Batumi, 6010, Georgia
Itezhi Tezhi Power Corporation Ltd.
Plot 3039, Makishi Road, Fairview Area,
Lusaka, Zambia
Resurgent Power Ventures Pte. Ltd.
1 Raffles Place, #13-01, One Raffles Place,
Singapore 048616
LTH Milcom Pvt. Ltd.
L & T House, Ballard Estate, Mumbai 400 001
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
30
Section 2(6)
Not applicable, foreign company
Associate
26
Section 2(6)
Not applicable, foreign company
Associate
26
Section 2(6)
Not applicable, foreign company
Associate
40
Section 2(6)
Not applicable, foreign company
Associate
Not applicable, foreign company
Associate
Not applicable, foreign company
Associate
Not applicable, foreign company
Associate
40
40
40
50
Section 2(6)
Section 2(6)
Section 2(6)
Section 2(6)
Not applicable, foreign company
Associate
26
Section 2(6)
U74999MH2015PTC267502
Associate
33.33
Section 2(6)
* Includes direct and indirect subsidiaries, joint ventures and associates.
Board’s Report I 71
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE IV.
i)
SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity):
Category-wise Share Holding
Category of Shareholders
No. of Shares held at the beginning of the year
(as on 01.04.2016)
Demat
Physical
Total
No. of Shares held at the end of the year
(as on 31.03.2017)
Physical
Total
Demat
0
0
0
89,25,44,226
0
6,56,240
89,32,00,466
0
0
0
0
0
0
89,32,00,466
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
89,25,44,226
0
6,56,240
89,32,00,466
0
0
0
0
0
0
89,32,00,466
9,29,81,480
1,56,36,027
0
32,24,109
0
52,40,17,593
5,42,06,853
0
1,74,420
4,85,062
0
2,52,560
0
30,400
68,980
0
9,31,55,900
1,61,21,089
0
34,76,669
0
52,40,47,993
5,42,75,833
0
%
Change
during
the year
% of
Total
Shares
0.00
0.00
0.00
33.00
0.00
0.02
33.02
0.00
0.00
0.00
0.00
0.00
0.00
33.02
3.44
0.60
0.00
0.13
0.00
19.37
2.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.55
0.00
0.00
-0.01
0.00
-1.49
-14.57
0.00
% of
Total
Shares
0.00
0.00
0.00
33.00
0.00
0.02
33.02
0.00
0.00
0.00
0.00
0.00
0.00
33.02
2.89
0.60
0.00
0.13
0.00
20.87
16.58
0.00
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
89,25,44,226
0
6,56,240
89,32,00,466
0
0
0
0
0
0
89,32,00,466
1,74,420
4,86,062
0
2,52,560
0
30,400
68,980
0
7,82,29,018
1,62,34,333
0
36,49,169
0
56,43,57,027
44,84,72,478
0
0
0
0
0
26,03,21,434
9.63
68,29,82,768
2,82,200
9,09,437
0
0.01
0.03
0.00
2,82,200
14,75,797
36,900
0
0
0
0
68,29,82,768
25.25
15.63
2,82,200
14,75,797
36,900
0.01
0.05
0.00
0.00
0.02
0.00
0
0
0
89,25,44,226
0
6,56,240
89,32,00,466
0
0
0
0
0
0
89,32,00,466
7,80,54,598
1,57,48,271
0
33,96,609
0
56,43,26,627
44,84,03,498
0
26,03,21,434
2,82,200
9,09,437
0
1,37,14,42,674
10,12,422 1,37,24,55,096
50.74 1,37,48,43,727
10,11,422 1,37,58,55,149
50.87
0.12
2,11,98,951
4,000
17,22,947
6,400
2,29,21,898
10,400
0.85
0.00
4,35,32,409
4,000
12,03,907
6,400
4,47,36,316
10,400
1.65
0.00
0.81
0.00
31,94,67,977
5,99,81,549
37,94,49,526
14.03
29,39,91,455
5,73,98,197
35,13,89,652
12.99
-1.04
2,63,44,169
14,91,480
2,78,35,649
1.03
2,43,40,372
13,79,580
2,57,19,952
0.95
-0.08
11,100
47,30,203
0
93,560
0
0
37,18,38,860 6,32,13,476
47,41,303
93,560
0
43,50,52,336
1,74,32,81,534 6,42,25,898 1,80,75,07,432
1,05,06,473
0.18
36,862
0.00
0
0.00
43,23,99,655
16.09
66.83 1,74,72,44,198 6,10,10,606 1,80,82,54,804
11,100
1,04,95,373
0
36,862
0
0
37,24,00,471 5,99,99,184
2,63,64,82,000 6,42,25,898 2,70,07,07,898
39,21,500
39,20,200
1,300
99.86 2,64,04,44,664 6,10,10,606 2,70,14,55,270
33,18,240
33,16,940
1,300
0.14
0.39
0.00
0.00
15.99
66.85
99.88
0.12
0.21
0.00
0.00
-0.10
0.02
0.02
-0.02
2,64,04,02,200 6,42,27,198 2,70,46,29,398 100.00 2,64,37,61,604 6,10,11,906 2,70,47,73,510
100.00
0.00
A. Promoters (including
Promoter Group)
(1) Indian
a) Individuals / HUF
b) Central Govt.
c) State Govt.(s)
d) Bodies Corporate
e) Banks/FI
f ) Any Other (Trust)
Sub-Total (A) (1):
(2) Foreign
a) NRIs -Individuals
b) Other - Individuals
c) Bodies Corporate
d) Banks/FI
e) Any Other (specify)
Sub-Total (A) (2):
Total Shareholding of
Promoters (A) =(A) (1)+(A)(2)
B. Public Shareholding
(1) Institutions
a) Mutual Funds / UTI
b) Banks/FI
c) Central Govt.
d) State Govt.(s)
e) Venture Capital Funds
f ) Insurance Companies
g) FIIs
h) Foreign Venture Capital
Funds
i) Others (specify)
i-i) Foreign Portfolio Investors
(Corporate)
i-ii) Foreign Nationals - DR
i-iii) Foreign Bodies - DR
i-iv) Foreign Institutional
Investors - DR
Sub-Total (B) (1):
(2) Non-Institutions
a) Bodies Corporate
i) Indian
ii) Overseas
b) Individuals
i) Individual shareholders
holding nominal share
capital upto ₹ 1 lakh
ii) Individual shareholders
holding nominal share
capital in excess of ₹ 1 lakh
c) Others (specify)
Trust
Directors & their relatives
Foreign Bodies
Sub-total (B) (2):
Total Public Shareholding
(B) = (B)(1)+(B)(2)
TOTAL (A)+(B)
C. Shares held by Custodians
for GDR & ADRs
GRAND TOTAL (A)+(B)+(C)
72 I Board’s Report
The Tata Power Company Limited ii)
Shareholding of Promoters (including Promoter Group)
Sl.
Shareholder’s Name
No.
Shareholding at the beginning of the year
(as on 01.04.2016)
Shareholding at the end of the year
(as on 31.03.2017)
No. of Shares % of total
Shares
of the
company
No. of Shares
% of Shares
Pledged/
encumbered
to total shares
83,97,99,682
31.05
1.68
83,97,99,682
3,91,22,725
68,47,842
45,35,200
22,29,657
9,120
5,72,880
70,160
13,200
89,32,00,466
1.45
0.25
0.17
0.08
0.00
0.02
0.00
0.00
33.02
0.00
0.00
0.00
0.00
3,91,22,725
68,47,842
45,35,200
22,29,657
9,120
0.00
5,72,880
0.00
70,160
0.00
0.00
13,200
1.68 89,32,00,466
% of
total
Shares
of the
company
31.05
1.45
0.25
0.17
0.08
0.00
0.02
0.00
0.00
33.02
% of Shares
Pledged/
encumbered
to total
shares
1.43
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.43
1
2
3
4
5
6
7
8
9
Tata Sons Limited
(Promoter)
Tata Steel Limited *
Tata Investment
Corporation Limited *
Tata Industries Limited *
Ewart Investments
Limited *
Sheba Properties Limited *
Sir Dorabji Tata Trust *
Sir Ratan Tata Trust *
JRD Tata Trust *
Total
* Part of Promoter Group
% change in
shareholding
during the
year
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
iii)
Changes in Promoter’s (including Promoter Group) Shareholding (please specify, if there is no change)
Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
Cumulative Shareholding
during the year
No. of
shares
83,97,99,682
% of
total
shares
of the
company
31.05
3,91,22,725
1.45
68,47,842
0.25
45,35,200
0.17
22,29,657
0.08
1
2
3
4
5
Tata Sons
Limited
(Promoter)
Tata Steel
Limited *
Tata
Investment
Corporation
Limited *
Tata Industries
Limited *
Ewart
Investments
Limited *
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
No. of
shares
% of total
shares
of the
company
No. of shares % of total
shares
of the
company
0
-
0
-
0
-
0
-
0
-
83,97,99,682
83,97,99,682
83,97,99,682
3,91,22,725
3,91,22,725
3,91,22,725
68,47,842
68,47,842
68,47,842
45,35,200
45,35,200
45,35,200
22,29,657
22,29,657
22,29,657
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
31.05
31.05
31.05
1.45
1.45
1.45
0.25
0.25
0.25
0.17
0.17
0.17
0.08
0.08
0.08
Board’s Report I 73
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
Cumulative Shareholding
during the year
No. of
shares
9,120
% of
total
shares
of the
company
0.00
Sheba
Properties
Limited *
Sir Dorabji Tata
Trust *
5,72,880
0.02
Sir Ratan Tata
Trust *
70,160
0.00
6
7
8
9
JRD Tata Trust *
13,200
0.00
No. of
shares
% of total
shares
of the
company
No. of shares % of total
shares
of the
company
0
-
0
-
0
-
0
-
0.00
-
0.00
-
0.00
-
0.00
-
9,120
9,120
9,120
5,72,880
5,72,880
5,72,880
70,160
70,160
70,160
13,200
13,200
13,200
0.00
0.00
0.00
0.02
0.02
0.02
0.00
0.00
0.00
0.00
0.00
0.00
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
-
No change
31.03.2017 At the end of the
year
* Part of Promoter Group
iv)
Shareholding Pattern of Top 10 Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs):
Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
Cumulative
Shareholding during
the year
No. of shares % of total
No. of
shares
1
Life Insurance
Corporation of
India
36,98,66,780
% of total
shares
of the
company
13.68
74 I Board’s Report
No. of
shares
% of total
shares
of the
company
19.08.2016 Sale of Shares
08.09.2016 Sale of Shares
09.09.2016 Sale of Shares
14.09.2016 Sale of Shares
16.09.2016 Sale of Shares
21.09.2016 Sale of Shares
23.09.2016 Sale of Shares
30.09.2016 Sale of Shares
07.10.2016 Sale of Shares
28.10.2016 Sale of Shares
03.02.2017 Sale of Shares
10.02.2017 Sale of Shares
03.03.2017 Sale of Shares
10.03.2017 Sale of Shares
17.03.2017 Sale of Shares
24.03.2017 Sale of Shares
31.03.2017 Sale of Shares
31.03.2017 At the end of the
year
-2,222
-19,00,000
-15,00,000
-10,00,000
-7,20,847
-25,00,000
-25,16,298
-47,81,547
-23,00,000
-73,487
-2,000
-1,00,000
-34,94,471
-88,84,415
-49,85,755
-26,35,359
-2,25,000
-
36,98,66,780
36,98,64,558
36,79,64,558
36,64,64,558
36,54,64,558
36,47,43,711
36,22,43,711
35,97,27,413
35,49,45,866
35,26,45,866
35,25,72,379
35,25,70,379
35,24,70,379
34,89,75,908
34,00,91,493
33,51,05,738
33,24,70,379
33,22,45,379
33,22,45,379
0.00
-0.07
-0.06
-0.04
-0.03
-0.09
-0.09
-0.18
-0.09
0.00
0.00
0.00
-0.13
-0.33
-0.18
-0.10
-0.01
-
shares
of the
company
13.67
13.67
13.60
13.55
13.51
13.49
13.39
13.30
13.12
13.04
13.04
13.04
13.03
12.90
12.57
12.39
12.29
12.28
12.28
The Tata Power Company Limited Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
2 Matthews
16,56,20,436
Pacific Tiger
Fund
% of total
shares
of the
company
6.12
8,78,45,474
3.25
3
First State
Investments
Icvc- Stewart
Investors
Global
Emerging
Markets
Leaders Fund
4 General
6,81,76,404
2.52
Insurance
Corporation of
India
5
The New India
Assurance
Company
Limited
6,89,54,953
2.55
6
ICICI Prudential
Balanced Fund
1,77,63,198
0.66
No. of
shares
% of total
shares
of the
company
07.10.2016 Purchase of Shares
14.10.2016 Purchase of Shares
21.10.2016 Purchase of Shares
04.11.2016 Purchase of Shares
03.03.2017 Sale of Shares
10.03.2017 Sale of Shares
24.03.2017 Sale of Shares
31.03.2017 At the end of the
year
22.04.2016 Purchase of Shares
18.11.2016 Purchase of Shares
23.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Purchase of Shares
31.03.2017 At the end of the
year
10.03.2017 Sale of Shares
17.03.2017 Sale of Shares
31.03.2017 At the end of the
year
13.05.2016 Sale of Shares
20.05.2016 Sale of Shares
03.06.2016 Sale of Shares
10.06.2016 Sale of Shares
09.09.2016 Sale of Shares
14.09.2016 Sale of Shares
16.09.2016 Sale of Shares
21.09.2016 Sale of Shares
23.09.2016 Sale of Shares
31.03.2017 At the end of the
year
08.04.2016 Sale of Shares
15.04.2016 Sale of Shares
22.04.2016 Sale of Shares
22.04.2016 Purchase of Shares
29.04.2016 Purchase of Shares
06.05.2016 Sale of Shares
06.05.2016 Purchase of Shares
13.05.2016 Sale of Shares
13.05.2016 Purchase of Shares
20.05.2016 Sale of Shares
33,91,793
6,08,207
9,43,752
10,56,248
-2,94,753
-32,05,247
-35,00,000
-
52,35,308
3,10,777
19,41,949
17,04,424
13,28,939
-
-2,13,444
-2,00,000
-
-1,00,000
-6,00,000
-4,00,000
-4,00,000
-30,000
-60,000
-1,05,000
-2,25,000
-80,000
-
-15,12,452
-11,83,084
-4,96,000
4,876
477
-4,72,622
4,96,000
-25,12,500
12,56,678
-3,41,173
0.13
0.02
0.03
0.04
-0.01
-0.12
-0.13
-
0.19
0.01
0.07
0.06
0.05
-
-0.01
-0.01
-
0.00
-0.02
-0.01
-0.01
0.00
0.00
0.00
-0.01
0.00
-
-0.06
-0.04
-0.02
0.00
0.00
-0.02
0.02
-0.09
0.05
-0.01
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
6.12
6.25
6.27
6.31
6.35
6.33
6.22
6.09
6.09
16,56,20,436
16,90,12,229
16,96,20,436
17,05,64,188
17,16,20,436
17,13,25,683
16,81,20,436
16,46,20,436
16,46,20,436
8,78,45,474
9,30,80,782
9,33,91,559
9,53,33,508
9,70,37,932
9,83,66,871
9,83,66,871
6,81,76,404
6,79,62,960
6,77,62,960
6,77,62,960
6,89,54,953
6,88,54,953
6,82,54,953
6,78,54,953
6,74,54,953
6,74,24,953
6,73,64,953
6,72,59,953
6,70,34,953
6,69,54,953
6,69,54,953
1,77,63,198
1,62,50,746
1,50,67,662
1,45,71,662
1,45,76,538
1,45,77,015
1,41,04,393
1,46,00,393
1,20,87,893
1,33,44,571
1,30,03,398
3.25
3.44
3.45
3.52
3.59
3.64
3.64
2.52
2.51
2.51
2.51
2.55
2.55
2.52
2.51
2.49
2.49
2.49
2.49
2.48
2.48
2.48
0.66
0.60
0.56
0.54
0.54
0.54
0.52
0.54
0.45
0.49
0.48
Board’s Report I 75
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
No. of
shares
-2,988
3,202
249
498
-2,10,173
3,498
750
-10,91,932
1,500
-6,52,665
1,297
-6,22,366
-9,75,351
4,750
10,02,000
4,003
-19,250
76,00,000
31,06,963
15,94,986
-624
4,76,805
-1,750
-2,000
1,250
-13,561
2,750
-1,80,000
1,51,527
-750
40,21,001
-79,38,000
38,40,250
-18
50,98,442
9,699
3,750
-1,50,116
4,06,250
2,35,625
15,43,382
68,891
769
-87
38,40,318
-3,60,826
% of total
shares
of the
company
0.00
0.00
0.00
0.00
-0.01
0.00
0.00
-0.04
0.00
-0.02
0.00
-0.02
-0.04
0.00
0.04
0.00
0.00
0.28
0.11
0.06
0.00
0.02
0.00
0.00
0.00
0.00
0.00
-0.01
0.01
0.00
0.15
-0.29
0.14
0.00
0.19
0.00
0.00
-0.01
0.02
0.01
0.06
0.00
0.00
0.00
0.14
-0.01
27.05.2016 Sale of Shares
27.05.2016 Purchase of Shares
03.06.2016 Purchase of Shares
10.06.2016 Purchase of Shares
17.06.2016 Sale of Shares
17.06.2016 Purchase of Shares
24.06.2016 Purchase of Shares
30.06.2016 Sale of Shares
30.06.2016 Purchase of Shares
01.07.2016 Sale of Shares
08.07.2016 Purchase of Shares
15.07.2016 Sale of Shares
22.07.2016 Sale of Shares
22.07.2016 Purchase of Shares
29.07.2016 Purchase of Shares
05.08.2016 Purchase of Shares
12.08.2016 Sale of Shares
12.08.2016 Purchase of Shares
19.08.2016 Purchase of Shares
26.08.2016 Purchase of Shares
02.09.2016 Sale of Shares
02.09.2016 Purchase of Shares
08.09.2016 Sale of Shares
09.09.2016 Sale of Shares
14.09.2016 Purchase of Shares
16.09.2016 Sale of Shares
16.09.2016 Purchase of Shares
21.09.2016 Sale of Shares
21.09.2016 Purchase of Shares
23.09.2016 Sale of Shares
23.09.2016 Purchase of Shares
30.09.2016 Sale of Shares
30.09.2016 Purchase of Shares
07.10.2016 Sale of Shares
07.10.2016 Purchase of Shares
14.10.2016 Purchase of Shares
21.10.2016 Purchase of Shares
04.11.2016 Sale of Shares
04.11.2016 Purchase of Shares
11.11.2016 Purchase of Shares
18.11.2016 Purchase of Shares
23.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Sale of Shares
02.12.2016 Purchase of Shares
09.12.2016 Sale of Shares
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
0.48
0.48
0.48
0.48
0.47
0.47
0.47
0.43
0.43
0.41
0.41
0.39
0.35
0.35
0.39
0.39
0.39
0.67
0.78
0.84
0.84
0.86
0.86
0.86
0.86
0.86
0.86
0.85
0.86
0.86
1.01
0.71
0.85
0.85
1.04
1.04
1.04
1.04
1.05
1.06
1.12
1.12
1.12
1.12
1.26
1.25
1,30,00,410
1,30,03,612
1,30,03,861
1,30,04,359
1,27,94,186
1,27,97,684
1,27,98,434
1,17,06,502
1,17,08,002
1,10,55,337
1,10,56,634
1,04,34,268
94,58,917
94,63,667
1,04,65,667
1,04,69,670
1,04,50,420
1,80,50,420
2,11,57,383
2,27,52,369
2,27,51,745
2,32,28,550
2,32,26,800
2,32,24,800
2,32,26,050
2,32,12,489
2,32,15,239
2,30,35,239
2,31,86,766
2,31,86,016
2,72,07,017
1,92,69,017
2,31,09,267
2,31,09,249
2,82,07,691
2,82,17,390
2,82,21,140
2,80,71,024
2,84,77,274
2,87,12,899
3,02,56,281
3,03,25,172
3,03,25,941
3,03,25,854
3,41,66,172
3,38,05,346
76 I Board’s Report
The Tata Power Company Limited Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
2,29,85,734
0.85
7
Stewart
Investors
Global
Emerging
Markets
Leaders Fund
No. of
shares
48,913
3,000
1,500
6,261
12,74,367
-1,000
601
3,750
-32,65,781
31,78,720
26,72,218
-500
5,44,889
7,19,710
22,16,789
-22,17,758
15,50,669
-21,22,592
28,80,000
-3,431
84,62,172
-11,500
25,33,881
-17,02,917
17,31,408
25,06,019
-
19,85,465
11,58,000
5,14,767
16,84,950
27,46,946
1,02,118
6,38,104
5,60,056
4,36,676
-
% of total
shares
of the
company
0.00
0.00
0.00
0.00
0.05
0.00
0.00
0.00
-0.12
0.12
0.10
0.00
0.02
0.03
0.08
-0.08
0.06
-0.08
0.11
0.00
0.31
0.00
0.09
-0.06
0.06
0.09
-
0.07
0.04
0.02
0.06
0.10
0.00
0.02
0.02
0.02
-
09.12.2016 Purchase of Shares
16.12.2016 Purchase of Shares
19.12.2016 Purchase of Shares
23.12.2016 Purchase of Shares
31.12.2016 Purchase of Shares
06.01.2017 Sale of Shares
06.01.2017 Purchase of Shares
13.01.2017 Purchase of Shares
20.01.2017 Sale of Shares
20.01.2017 Purchase of Shares
27.01.2017 Purchase of Shares
03.02.2017 Sale of Shares
03.02.2017 Purchase of Shares
10.02.2017 Purchase of Shares
17.02.2017 Purchase of Shares
24.02.2017 Sale of Shares
24.02.2017 Purchase of Shares
03.03.2017 Sale of Shares
03.03.2017 Purchase of Shares
10.03.2017 Sale of Shares
10.03.2017 Purchase of Shares
17.03.2017 Sale of Shares
17.03.2017 Purchase of Shares
24.03.2017 Sale of Shares
24.03.2017 Purchase of Shares
31.03.2017 Purchase of Shares
31.03.2017 At the end of the
year
26.08.2016 Purchase of Shares
02.09.2016 Purchase of Shares
21.10.2016 Purchase of Shares
28.10.2016 Purchase of Shares
04.11.2016 Purchase of Shares
18.11.2016 Purchase of Shares
23.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Purchase of Shares
31.03.2017 At the end of the
year
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
1.25
1.25
1.25
1.25
1.30
1.30
1.30
1.30
1.18
1.30
1.39
1.39
1.41
1.44
1.52
1.44
1.50
1.42
1.53
1.53
1.84
1.84
1.93
1.87
1.93
2.03
2.03
0.85
0.92
0.97
0.99
1.05
1.15
1.15
1.18
1.20
1.21
1.21
3,38,54,259
3,38,57,259
3,38,58,759
3,38,65,020
3,51,39,387
3,51,38,387
3,51,38,988
3,51,42,738
3,18,76,957
3,50,55,677
3,77,27,895
3,77,27,395
3,82,72,284
3,89,91,994
4,12,08,783
3,89,91,025
4,05,41,694
3,84,19,102
4,12,99,102
4,12,95,671
4,97,57,843
4,97,46,343
5,22,80,224
5,05,77,307
5,23,08,715
5,48,14,734
5,48,14,734
2,29,85,734
2,49,71,199
2,61,29,199
2,66,43,966
2,83,28,916
3,10,75,862
3,11,77,980
3,18,16,084
3,23,76,140
3,28,12,816
3,28,12,816
Board’s Report I 77
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
Cumulative
Shareholding during
the year
No. of shares % of total
No. of
shares
8 M Pallonji & Co.
0
Pvt. Ltd.
% of total
shares
of the
company
0.00
82,37,784
0.30
1,59,09,748
0.59
9
First State
Investments
Global
Emerging
Markets
Leaders Fund,
A Sub-Fund of
The First State
Investments
Delaware
Statutory Trust
10 Vanguard
Emerging
Markets Stock
Index Fund,
A series of
Vanguard
International
Equity Index
Fund
78 I Board’s Report
No. of
shares
% of total
shares
of the
company
13.05.2016 Purchase of Shares
16.12.2016 Purchase of Shares
19.12.2016 Purchase of Shares
23.12.2016 Sale of Shares
23.12.2016 Purchase of Shares
13.01.2017 Purchase of Shares
10.02.2017 Sale of Shares
24.03.2017 Sale of Shares
31.03.2017 At the end of the
year
572
1,28,31,499
1,29,36,304
-2,57,68,375
2,57,68,375
200
-11,262
-3,00,000
-
12.08.2016 Purchase of Shares
19.08.2016 Purchase of Shares
26.08.2016 Purchase of Shares
07.10.2016 Purchase of Shares
14.10.2016 Purchase of Shares
21.10.2016 Purchase of Shares
28.10.2016 Purchase of Shares
04.11.2016 Purchase of Shares
18.11.2016 Purchase of Shares
23.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Purchase of Shares
31.03.2017 At the end of the
year
08.04.2016 Purchase of Shares
22.04.2016 Purchase of Shares
10.06.2016 Purchase of Shares
24.06.2016 Purchase of Shares
22.07.2016 Purchase of Shares
29.07.2016 Purchase of Shares
05.08.2016 Purchase of Shares
12.08.2016 Purchase of Shares
19.08.2016 Purchase of Shares
08.09.2016 Purchase of Shares
07.10.2016 Purchase of Shares
14.10.2016 Purchase of Shares
21.10.2016 Purchase of Shares
28.10.2016 Purchase of Shares
11.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Purchase of Shares
06.01.2017 Purchase of Shares
13.01.2017 Purchase of Shares
9,39,028
16,794
19,60,761
29,00,029
4,03,432
3,29,527
10,78,617
17,58,454
64,689
4,04,218
3,54,778
2,76,620
-
53,956
42,460
96,784
1,76,088
44,496
1,19,178
61,865
90,945
1,29,344
52,260
41,472
28,512
97,200
38,880
84,240
1,02,384
58,320
25,272
53,703
0
572
1,28,32,071
2,57,68,375
0
2,57,68,375
2,57,68,575
2,57,57,313
2,54,57,313
2,54,57,313
82,37,784
91,76,812
91,93,606
1,11,54,367
1,40,54,396
1,44,57,828
1,47,87,355
1,58,65,972
1,76,24,426
1,76,89,115
1,80,93,333
1,84,48,111
1,87,24,731
1,87,24,731
1,59,09,748
1,59,63,704
1,60,06,164
1,61,02,948
1,62,79,036
1,63,23,532
1,64,42,710
1,65,04,575
1,65,95,520
1,67,24,864
1,67,77,124
1,68,18,596
1,68,47,108
1,69,44,308
1,69,83,188
1,70,67,428
1,71,69,812
1,72,28,132
1,72,53,404
1,73,07,107
0.00
0.47
0.48
-0.95
0.95
0.00
0.00
-0.01
-
0.03
0.00
0.07
0.11
0.01
0.01
0.04
0.07
0.00
0.01
0.01
0.01
-
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
shares
of the
company
0.00
0.00
0.47
0.95
0.00
0.95
0.95
0.95
0.94
0.94
0.30
0.34
0.34
0.41
0.52
0.53
0.55
0.59
0.65
0.65
0.67
0.68
0.69
0.69
0.59
0.59
0.59
0.60
0.60
0.60
0.61
0.61
0.61
0.62
0.62
0.62
0.62
0.63
0.63
0.63
0.63
0.64
0.64
0.64
The Tata Power Company Limited Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
11 Government of
Singapore
1,97,34,833
0.73
12 Abu Dhabi
Investment
Authority
2,32,75,987
0.86
No. of
shares
25,272
75,816
21,060
78,840
77,088
-
% of total
shares
of the
company
0.00
0.00
0.00
0.00
0.00
-
-6,27,559
-5,48,861
-2,63,194
-4,65,876
-1,98,077
3,57,925
-2,98,089
-25,101
-2,19,429
-3,51,950
-78,731
-46,636
-1,14,430
15,415
1,34,517
-13,45,560
-38,590
-37,043
3,69,732
35,603
1,17,863
1,10,097
-6,56,707
-2,29,177
-1,00,537
31,823
-3,28,203
-
-4,49,243
4,49,243
-23,10,458
13,44,597
-13,44,597
-19,00,920
19,00,920
-13,72,357
-0.02
-0.02
-0.01
-0.02
-0.01
0.01
-0.01
0.00
-0.01
-0.01
0.00
0.00
0.00
0.00
0.00
-0.05
0.00
0.00
0.01
0.00
0.00
0.00
-0.02
-0.01
0.00
0.00
-0.01
-
-0.02
0.02
-0.09
0.05
-0.05
-0.07
0.07
-0.05
20.01.2017 Purchase of Shares
03.02.2017 Purchase of Shares
17.02.2017 Purchase of Shares
24.03.2017 Purchase of Shares
31.03.2017 Purchase of Shares
31.03.2017 At the end of the
year
08.04.2016 Sale of Shares
22.04.2016 Sale of Shares
29.04.2016 Sale of Shares
06.05.2016 Sale of Shares
03.06.2016 Sale of Shares
10.06.2016 Purchase of Shares
08.07.2016 Sale of Shares
22.07.2016 Sale of Shares
29.07.2016 Sale of Shares
05.08.2016 Sale of Shares
12.08.2016 Sale of Shares
19.08.2016 Sale of Shares
02.09.2016 Sale of Shares
08.09.2016 Purchase of Shares
07.10.2016 Purchase of Shares
28.10.2016 Sale of Shares
04.11.2016 Sale of Shares
11.11.2016 Sale of Shares
02.12.2016 Purchase of Shares
16.12.2016 Purchase of Shares
31.12.2016 Purchase of Shares
06.01.2017 Purchase of Shares
03.02.2017 Sale of Shares
10.02.2017 Sale of Shares
03.03.2017 Sale of Shares
10.03.2017 Purchase of Shares
31.03.2017 Sale of Shares
31.03.2017 At the end of the
year
22.04.2016 Sale of Shares
22.04.2016 Purchase of Shares
29.04.2016 Sale of Shares
29.04.2016 Purchase of Shares
06.05.2016 Sale of Shares
13.05.2016 Sale of Shares
13.05.2016 Purchase of Shares
20.05.2016 Sale of Shares
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
0.64
0.64
0.64
0.65
0.65
0.65
0.73
0.71
0.69
0.68
0.66
0.65
0.67
0.65
0.65
0.65
0.63
0.63
0.63
0.62
0.62
0.63
0.58
0.58
0.58
0.59
0.59
0.60
0.60
0.58
0.57
0.56
0.56
0.55
0.55
0.86
0.84
0.86
0.78
0.82
0.78
0.70
0.78
0.72
1,73,32,379
1,74,08,195
1,74,29,255
1,75,08,095
1,75,85,183
1,75,85,183
1,97,34,833
1,91,07,274
1,85,58,413
1,82,95,219
1,78,29,343
1,76,31,266
1,79,89,191
1,76,91,102
1,76,66,001
1,74,46,572
1,70,94,622
1,70,15,891
1,69,69,255
1,68,54,825
1,68,70,240
1,70,04,757
1,56,59,197
1,56,20,607
1,55,83,564
1,59,53,296
1,59,88,899
1,61,06,762
1,62,16,859
1,55,60,152
1,53,30,975
1,52,30,438
1,52,62,261
1,49,34,058
1,49,34,058
2,32,75,987
2,28,26,744
2,32,75,987
2,09,65,529
2,23,10,126
2,09,65,529
1,90,64,609
2,09,65,529
1,95,93,172
Board’s Report I 79
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
13 SBI Mutual
Funds
2,80,25,908
1.04
No. of
shares
-5,58,176
5,28,563
-25,81,032
17,85,953
-17,85,953
-2,00,000
-12,22,622
-8,22,079
-2,20,700
-16,56,082
16,56,082
-3,52,752
-10,20,076
1,57,458
-4,40,712
-1,62,613
-87,560
-8,00,000
-
-5,82,877
10,01,969
-36,19,813
30,04,610
13,392
-3,07,590
30,504
18,042
3,946
5,90,156
1,13,441
37,312
2,468
57,373
1,07,695
-242
74,899
-248
2,61,905
-666
1,190
-2,669
8,432
-50,000
% of total
shares
of the
company
-0.02
0.02
-0.10
0.07
-0.07
-0.01
-0.05
-0.03
-0.01
-0.06
0.06
-0.01
-0.04
0.01
-0.02
-0.01
0.00
-0.03
-
-0.02
0.04
-0.13
0.11
0.00
-0.01
0.00
0.00
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
27.05.2016 Sale of Shares
27.05.2016 Purchase of Shares
03.06.2016 Sale of Shares
03.06.2016 Purchase of Shares
10.06.2016 Sale of Shares
24.06.2016 Sale of Shares
15.07.2016 Sale of Shares
02.09.2016 Sale of Shares
02. 12.2016 Sale of Shares
16.12.2016 Sale of Shares
16.12.2016 Purchase of Shares
19.12.2016 Sale of Shares
23.12.2016 Sale of Shares
23.12.2016 Purchase of Shares
31.12.2016 Sale of Shares
24.02.2017 Sale of Shares
03.03.2017 Sale of Shares
03.03.2017 Sale of Shares
31.03.2017 At the end of the
year
08.04.2016 Sale of Shares
08.04.2016 Purchase of Shares
15.04.2016 Sale of Shares
15.04.2016 Purchase of Shares
22.04.2016 Purchase of Shares
29.04.2016 Sale of Shares
29.04.2016 Purchase of Shares
06.05.2016 Purchase of Shares
13.05.2016 Purchase of Shares
20.05.2016 Purchase of Shares
27.05.2016 Purchase of Shares
03.06.2016 Purchase of Shares
10.06.2016 Sale of Shares
17.06.2016 Purchase of Shares
24.06.2016 Purchase of Shares
30.06.2016 Sale of Shares
30.06.2016 Purchase of Shares
01.07.2016 Sale of Shares
08.07.2016 Purchase of Shares
15.07.2016 Sale of Shares
15.07.2016 Purchase of Shares
22.07.2016 Sale of Shares
22.07.2016 Purchase of Shares
29.07.2016 Sale of Shares
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
0.70
0.72
0.63
0.69
0.63
0.62
0.58
0.54
0.54
0.48
0.54
0.52
0.49
0.49
0.48
0.47
0.47
0.44
0.44
1.04
1.01
1.05
0.92
1.03
1.03
1.02
1.02
1.02
1.02
1.04
1.05
1.05
1.05
1.05
1.05
1.05
1.06
1.06
1.07
1.07
1.07
1.07
1.07
1.06
1,90,34,996
1,95,63,559
1,69,82,527
1,87,68,480
1,69,82,527
1,67,82,527
1,55,59,905
1,47,37,826
1,45,17,126
1,28,61,044
1,45,17,126
1,41,64,374
1,31,44,298
1,33,01,756
1,28,61,044
1,26,98,431
1,26,10,871
1,18,10,871
1,18,10,871
2,80,25,908
2,74,43,031
2,84,45,000
2,48,25,187
2,78,29,797
2,78,43,189
2,75,35,599
2,75,66,103
2,75,84,145
2,75,88,091
2,81,78,247
2,82,91,688
2,83,29,000
2,83,31,468
2,83,88,841
2,84,96,536
2,84,96,294
2,85,71,193
2,85,70,945
2,88,32,850
2,88,32,184
2,88,33,374
2,88,30,705
2,88,39,137
2,87,89,137
80 I Board’s Report
The Tata Power Company Limited Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
No. of
shares
36,264
16,642
15,422
15,565
-2,544
53,918
1,35,653
-552
1,00,753
37,942
67,439
60,271
70,427
43,285
-11,00,007
19,01,573
14,63,059
16,262
1,12,778
74,837
35,440
77,639
79,720
% of total
shares
of the
company
0.00
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-0.04
0.07
0.05
0.00
0.00
0.00
0.00
0.00
0.00
56,236
31,898
4,26,600
-80,750
1,21,442
-1,00,00,000
2,35,562
-3,53,142
54,774
-22,18,034
2,68,909
-6,45,000
8,25,954
-26,46,890
3,67,274
-46,33,327
1,46,151
-32,84,130
57,291
-23,00,569
71,928
-7,935
1,71,547
0.00
0.00
0.02
0.00
0.00
-0.37
0.01
-0.01
0.00
-0.08
0.01
-0.02
0.03
-0.10
0.01
-0.17
0.01
-0.12
0.00
-0.09
0.00
0.00
0.01
29.07.2016 Purchase of Shares
05.08.2016 Purchase of Shares
12.08.2016 Purchase of Shares
19.08.2016 Purchase of Shares
26.08.2016 Sale of Shares
26.08.2016 Purchase of Shares
02.09.2016 Purchase of Shares
08.09.2016 Sale of Shares
08.09.2016 Purchase of Shares
09.09.2016 Purchase of Shares
14.09.2016 Purchase of Shares
16.09.2016 Purchase of Shares
21.09.2016 Purchase of Shares
23.09.2016 Purchase of Shares
30.09.2016 Sale of Shares
30.09.2016 Purchase of Shares
07.10.2016 Purchase of Shares
14.10.2016 Purchase of Shares
21.10.2016 Purchase of Shares
28.10.2016 Purchase of Shares
04.11.2016 Purchase of Shares
11.11.2016 Purchase of Shares
18.11.2016 Purchase of Shares
23.11.2016 Purchase of Shares
25.11.2016 Purchase of Shares
02.12.2016 Purchase of Shares
09.12.2016 Sale of Shares
09.12.2016 Purchase of Shares
16.12.2016 Sale of Shares
16.12.2016 Purchase of Shares
19.12.2016 Sale of Shares
19.12.2016 Purchase of Shares
23.12.2016 Sale of Shares
23.12.2016 Purchase of Shares
31.12.2016 Sale of Shares
31.12.2016 Purchase of Shares
06.01.2017 Sale of Shares
06.01.2017 Purchase of Shares
13.01.2017 Sale of Shares
13.01.2017 Purchase of Shares
20.01.2017 Sale of Shares
20.01.2017 Purchase of Shares
27.01.2017 Sale of Shares
27.01.2017 Purchase of Shares
03.02.2017 Sale of Shares
03.02.2017 Purchase of Shares
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
1.07
1.07
1.07
1.07
1.07
1.07
1.07
1.07
1.08
1.08
1.08
1.08
1.09
1.09
1.05
1.12
1.17
1.17
1.18
1.18
1.18
1.18
1.19
1.19
1.19
1.21
1.20
1.21
0.84
0.85
0.83
0.84
0.75
0.76
0.74
0.77
0.67
0.69
0.51
0.52
0.40
0.40
0.32
0.32
0.32
0.32
2,88,25,401
2,88,42,043
2,88,57,465
2,88,73,030
2,88,70,486
2,89,24,404
2,90,60,057
2,90,59,505
2,91,60,258
2,91,98,200
2,92,65,639
2,93,25,910
2,93,96,337
2,94,39,622
2,83,39,615
3,02,41,188
3,17,04,247
3,17,20,509
3,18,33,287
3,19,08,124
3,19,43,564
3,20,21,203
3,21,00,923
3,21,57,159
3,21,89,057
3,26,15,657
3,25,34,907
3,26,56,349
2,26,56,349
2,28,91,911
2,25,38,769
2,25,93,543
2,03,75,509
2,06,44,418
1,99,99,418
2,08,25,372
1,81,78,482
1,85,45,756
1,39,12,429
1,40,58,580
1,07,74,450
1,08,31,741
85,31,172
86,03,100
85,95,165
87,66,712
Board’s Report I 81
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Sl.
No.
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2016)
Date
Reason
Increase/Decrease in
Shareholding
No. of
shares
% of total
shares
of the
company
14 Aberdeen
3,65,98,000
1.35
Global Indian
Equity Limited
No. of
shares
-561
2,02,676
2,06,329
1,11,378
4,31,830
-32
85,811
18,048
-82,590
1,349
-2,162
1,26,363
-
% of total
shares
of the
company
0.00
0.01
0.01
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
-30,00,000
-30,23,822
-44,41,388
-51,77,970
-42,61,073
-35,89,331
-32,29,081
-98,75,335
-
-0.11
-0.11
-0.16
-0.19
-0.16
-0.13
-0.12
-0.37
-
10.02.2017 Sale of Shares
10.02.2017 Purchase of Shares
17.02.2017 Purchase of Shares
24.02.2017 Purchase of Shares
03.03.2017 Purchase of Shares
10.03.2017 Sale of Shares
10.03.2017 Purchase of Shares
17.03.2017 Purchase of Shares
24.03.2017 Sale of Shares
24.03.2017 Purchase of Shares
31.03.2017 Sale of Shares
31.03.2017 Purchase of Shares
31.03.2017 At the end of the
year
03.06.2016 Sale of Shares
01.07.2016 Sale of Shares
08.07.2016 Sale of Shares
15.07.2016 Sale of Shares
22.07.2016 Sale of Shares
29.07.2016 Sale of Shares
05.08.2016 Sale of Shares
12.08.2016 Sale of Shares
31.03.2017 At the end of the
year
Cumulative
Shareholding during
the year
No. of shares % of total
shares
of the
company
0.32
0.33
0.34
0.34
0.36
0.36
0.36
0.36
0.36
0.36
0.36
0.36
0.36
1.35
1.24
1.13
0.97
0.77
0.62
0.48
0.37
0.00
0.00
87,66,151
89,68,827
91,75,156
92,86,534
97,18,364
97,18,332
98,04,143
98,22,191
97,39,601
97,40,950
97,38,788
98,65,151
98,65,151
3,65,98,000
3,35,98,000
3,05,74,178
2,61,32,790
2,09,54,820
1,66,93,747
1,31,04,416
98,75,335
0
0
v)
Shareholding of Directors and Key Managerial Personnel:
Date
Reason
Increase/Decrease
in Shareholding
Cumulative
Shareholding
during the year
Shareholding at
the beginning of
the year
(as on 01.04.2016)
% of total
No. of
shares
shares
of the
company
0.00
0
Sl.
No.
Name of the
Director / Key
Managerial
Personnel
1 Mr. N.
Chandrasekaran
(w.e.f. 11.02.2017)
2 Mr. S. Padmanabhan
(w.e.f. 16.12.2016)
3 Dr. Homiar S. Vachha
4 Mr. Nawshir H. Mirza
82 I Board’s Report
0
0
0
0.00
0.00
0.00
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
No. of
shares
% of total
shares
of the
company
No. of
shares
0
-
0
-
0
-
0
-
0.00
-
0.00
-
0.00
-
0.00
-
0
0
0
0
0
0
0
0
0
0
0
0
% of total
shares
of the
company
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
The Tata Power Company Limited Sl.
No.
Name of the
Director / Key
Managerial
Personnel
5 Mr. Deepak M.
Satwalekar
6 Mr. Pravin H.
Kutumbe
7 Ms. Sandhya S.
Kudtarkar
(w.e.f. 16.04.2016)
8 Ms. Anjali Bansal
(w.e.f. 14.10.2016)
9 Ms. Vibha Padalkar
(w.e.f. 14.10.2016)
Shareholding at
the beginning of
the year
(as on 01.04.2016)
% of total
No. of
shares
shares
of the
company
0.00
0
0
0
0
0
0.00
0.00
0.00
0.00
10 Mr. Sanjay V.
16,262
0.00
Bhandarkar
(w.e.f. 14.10.2016)
11 Mr. Anil Sardana,
CEO & Managing
Director
0
0.00
12 Mr. Ashok S. Sethi,
20,600
0.00
COO & Executive
Director
13 Mr. Ramesh N.
0
0.00
Subramanyam, Chief
Financial Officer
14 Mr. Hanoz M. Mistry,
Company Secretary
18,445
0.00
15 Mr. Piyush G.
Mankad
(upto 17.11.2016)
16 Mr. Cyrus P. Mistry
(upto 19.12.2016)
0
0.00
72,960
0.00
17 Mr. Ashok K. Basu
(upto 23.03.2017)
0
0.00
Date
Reason
Increase/Decrease
in Shareholding
Cumulative
Shareholding
during the year
No. of
shares
% of total
shares
of the
company
No. of
shares
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
16,262
16,262
16,262
0
0
0
20,600
20,600
20,600
0
0
0
18,445
18,445
18,445
0
0
0
72,960
72,960
72,960
0
0
0
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
0.00
-
% of total
shares
of the
company
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
-
No change
31.03.2017 At the end of the year
- No change
31.03.2017 At the end of the year
No change
17.11.2016 At the end of the period
No change
19.12.2016 At the end of the period
-
No change
23.03.2017 At the end of the period
Board’s Report I 83
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE V.
INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Figures in ₹ crore
Unsecured
Loans
Deposits
Total
Indebtedness
Secured Loans
excluding
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
•
•
Addition
Reduction
Net Change
Indebtedness at the end of the financial year
i)
ii)
iii)
Principal Amount
Interest due but not paid
Interest accrued but not due
5,373.67
-
92.90
5,855.51
-
133.81
5,466.57
5,989.32
2,043.43
(1,336.76)
706.67
6,089.83
-
83.41
12,771.24
(8,033.28)
4,737.96
10,413.82
-
313.46
Total (i + ii + iii)
6,173.24
10,727.28
VI.
A.
REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
Remuneration to Managing Director, Whole-time Director and/or Manager:
0.03
-
-
0.03
-
-
-
0.03
-
-
0.03
11,229.21
-
226.71
11,455.92
14,814.67
(9,370.04)
5,444.63
16,503.68
-
396.87
16,900.55
(₹)
Particulars of Remuneration
Name of MD/WTD/Manager
Total Amount
Mr. Anil
Sardana, CEO
& Managing
Director
Mr. Ashok S.
Sethi, COO
& Executive
Director
Gross salary
(a) Salary as per provisions contained in section 17(1) of the Income-tax Act,
2,38,12,250
1,49,12,134
3,87,24,384
1961
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) of the Income-tax Act, 1961
Stock Option
Sweat Equity
Commission
- as % of profit
- others, specify... (performance based)
5.
Others, Retirement Benefits
Total (A)
7,59,562
Nil
Nil
Nil
19,597
Nil
Nil
Nil
7,79,159
Nil
Nil
Nil
-
&5,00,00,000
-
&1,60,00,000
-
&6,60,00,000
26,73,000
6,98,400
33,71,400
7,72,44,812
3,16,30,131
10,88,74,943
Sl.
No.
1.
2.
3.
4.
Ceiling as per Act (@ 10% of profit calculated under Section 198 of the Companies Act, 2013)
36.44 crore
& Commission relates to the financial year ended 31st March 2017, which will be paid during FY18.
84 I Board’s Report
The Tata Power Company Limited
B.
Remuneration to other directors:
Sl. No.
Name of Directors
Particulars of Remuneration
Total Amount
(₹)
Fee for
attending board
/ committee
meetings*
Commission
payable for FY17&
Others, please
specify
I.
1.
2.
3.
4.
5.
6.
7.
8.
II.
1.
2.
3.
4.
5.
Independent Directors
Dr. H. S. Vachha
Mr. N. H. Mirza
Mr. D. M. Satwalekar
Ms. Anjali Bansal (w.e.f. 14.10.2016)
Ms. Vibha Padalkar (w.e.f. 14.10.2016)
Mr. S. V. Bhandarkar (w.e.f. 14.10.2016)
Mr. P. G. Mankad (upto 17.11.2016)
Mr. A. K. Basu (upto 23.03.2017)
6,60,000
9,60,000
10,50,000
2,40,000
3,30,000
2,40,000
3,30,000
2,70,000
59,50,000
94,50,000
80,50,000
13,50,000
20,00,000
11,00,000
24,50,000
17,50,000
Total (I)
40,80,000
3,21,00,000
Other Non-Executive Directors
Mr. N. Chandrasekaran (w.e.f. 11.02.2017) $
Mr. S. Padmanabhan (w.e.f. 16.12.2016)
Mr. P. H. Kutumbe @
Ms. S. S. Kudtarkar (w.e.f. 16.04.2016)
Mr. C. P. Mistry (upto 19.12.2016) #
Total (II)
Nil
1,50,000
2,70,000
2,40,000
3,90,000
10,50,000
Nil
13,00,000
13,00,000
13,00,000
Nil
39,00,000
Total Managerial Remuneration (I + II)
Ceiling as per Act (@ 1% of profit calculated under Section 198 of the Companies Act, 2013)
3,60,00,000
51,30,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
66,10,000
1,04,10,000
91,00,000
15,90,000
23,30,000
13,40,000
27,80,000
20,20,000
3,61,80,000
Nil
14,50,000
15,70,000
15,40,000
3,90,000
49,50,000
4,11,30,000
3.64 crore
* Excludes service tax
& Commission relates to the financial year ended 31st March 2017, which will be paid to the eligible Directors during FY18.
$ Mr. N. Chandrasekaran has not attended any meeting and hence, not paid any Sitting Fees or Commission.
# Mr. C. P. Mistry, being Executive Chairman of Tata Sons Limited till 24th October 2016, has not accepted any Commission till such date.
@ The Sitting Fees for attending meetings and the Commission was paid to LIC
C.
Remuneration to Key Managerial Personnel other than MD / Manager / WTD
Sl.
No.
Particulars of Remuneration
Key Managerial Personnel
(₹)
Total
Mr. R. N. Subramanyam,
Chief Financial Officer
Mr. H. M. Mistry,
Company
Secretary
1.
Gross salary
(a) Salary as per provisions contained in section 17(1) of the
Income-tax Act, 1961
* 2,45,55,837
* 80,13,045
* 3,25,68,882
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961
(c) Profits in lieu of salary under section 17(3) of the Income-tax
36,62,745
Nil
3,474
Nil
36,66,219
Nil
2.
3.
4.
Act, 1961
Stock Option
Sweat Equity
Commission
- as % of profit
- others
5.
Others, Retirement Benefits
Total
* Includes Performance Pay for FY 16 paid in FY 17.
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
6,78,960
7,11,868
13,90,828
2,88,97,542
87,28,387
3,76,25,929
Board’s Report I 85
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
VII.
PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:
Type
Section of the
Companies Act
Brief
Description
Details of Penalty /
Punishment /
Compounding fees
imposed
Authority
[RD / NCLT /
COURT]
Appeal made,
if any
(give details)
A. COMPANY
Penalty
Punishment
Compounding
B. DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
Mumbai, 19th May 2017
None
None
None
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
86 I Board’s Report
The Tata Power Company Limited
Annexure – IX : Secretarial Audit Report
(Ref.: Board’s Report, Section 27)
FORM No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH, 2017
(Pursuant to Section 204 (1) of the Companies Act, 2013 and rule No. 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014)
To,
The Members,
The Tata Power Company Limited
We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporate practices
by The Tata Power Company Limited (hereinafter called ‘the Company’). Secretarial Audit was conducted in a manner that provided us a
reasonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute books, forms and returns filed and other records maintained by the Company,
the information provided by the Company, its officers, agents and authorised representatives during the conduct of secretarial audit, the
explanations and clarifications given to us and the representations made by the Management, we hereby report that in our opinion, the
company has, during the audit period covering the financial year ended on 31st March, 2017, generally complied with the statutory provisions
listed hereunder and also that the Company has proper Board processes and compliance mechanism in place to the extent, in the manner
and subject to the reporting made hereinafter.
We have examined the books, papers, minute books, forms and returns filed and other records made available to us and maintained by the
Company for the financial year ended on 31st March, 2017 according to the provisions of:
(i)
(ii)
(iii)
(iv)
The Companies Act, 2013 (the Act) and the rules made thereunder;
The Securities Contract (Regulation) Act, 1956 (SCRA) and the rules made thereunder;
The Depositories Act, 1996 and the regulations and bye-laws framed thereunder;
Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign Direct Investment,
Overseas Direct Investment and External Commercial Borrowings;
(v)
The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (SEBI Act)
(a)
(b)
(c)
(d)
(e)
(f )
(g)
(h)
The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
The Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines,
1999 and The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014; (Not applicable to
the Company during the audit period);
The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;
The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 regarding the
Companies Act and dealing with client; (Not applicable to the Company during the audit period);
The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009; (Not applicable to the Company
during the audit period) and
The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; (Not applicable to the Company during
the audit period).
(vi)
Other industry specific laws applicable to the Company are as follows:
(a)
(b)
(c)
(d)
The Electricity Act, 2003
The Indian Electricity Rules, 1956
The rules, regulations and applicable order(s) under Central and State Electricity Regulatory Commissions/Authority
The Energy Conservation Act, 2001
We have also examined compliance with the applicable clauses of the following:
(i)
(ii)
Secretarial Standards issued by The Institute of Company Secretaries of India with respect to board and general meetings.
The Listing Agreements entered into by the Company with BSE Limited and National Stock Exchange of India Limited read with the
SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
During the period under review, the Company has complied with the provisions of the Act, Rules, Regulations, Guidelines, standards etc.
mentioned above.
Board’s Report I 87
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE We further report that:
The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors and Independent
Directors. The changes in the composition of the Board of Directors that took place during the period under review were carried out in
compliance with the provisions of the Act.
Adequate notice was given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at least seven
days in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting
and for meaningful participation at the meeting.
Majority decision is carried through while the dissenting members’ views are captured and recorded as part of the Minutes of the meetings.
We further report that there are adequate systems and processes in the Company commensurate with the size and operations of the Company
to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period the Company had following events which had bearing on the Company’s affairs in pursuance
of the above referred laws, rules, regulations, guidelines, standards etc.
1.
2.
3.
4.
Issue of privately placed non-convertible debentures aggregating ₹ 3,500 crore, under Section 42 and 71 of the Act.
Part redemption of two Series of Non-convertible Debentures (NCDs) aggregating to ₹ 41 crore during the year.
The Scheme of Amalgamation of Chemical Terminal Trombay Limited with the Company is pending in the National Company Law
Tribunal (NCLT).
The Company’s application for renewables carve out of its assets to its wholly owned subsidiary Tata Power Renewable Energy Limited
and its step down subsidiaries is pending in the NCLT.
Place: Mumbai
Date: 19th May 2017
For Parikh & Associates
Company Secretaries
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
This Report is to be read with our letter of even date which is annexed as Annexure A and forms an integral part of this report.
‘Annexure A’
To,
The Members,
The Tata Power Company Limited
Our report of even date is to be read along with this letter.
1.
2.
3.
4.
5.
6.
Maintenance of secretarial record is the responsibility of the management of the Company. Our responsibility is to express an
opinion on these secretarial records based on our audit.
We have followed the audit practices and process as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial records. The verification was done on test basis to ensure that correct facts are reflected in
secretarial records. We believe that the process and practices we followed provide a reasonable basis for our opinion.
We have not verified the correctness and appropriateness of financial records and Books of Account of the Company.
Wherever required, we have obtained the Management Representation about the compliance of laws, rules and regulations
and happening of events etc.
The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility of
management. Our examination was limited to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness
with which the management has conducted the affairs of the Company.
Place: Mumbai
Date: 19th May 2017
88 I Board’s Report
For Parikh & Associates
Company Secretaries
P. N. Parikh
Partner
FCS No: 327 CP No: 1228
The Tata Power Company Limited
MANAGEMENT DISCUSSION
AND ANALYSIS
Penstock, Bhira, Maharashtra
MANAGEMENT DISCUSSION AND ANALYSIS
1.
INDUSTRY STRUCTURE AND DEVELOPMENTS
1.1. MARKET STRUCTURE
The Power market in India has multiple business models for sale and purchase of bulk power, as illustrated below:
Integrated Power Utilities (Generation, Transmission and Distribution Owned by Single Entity)
Single/Multi Buyer
with Regulated
Return
Central and State
Transmission Utilities
Sole Provider of
Electricity
Competitive Bidding
Based Model
Generation
Transmission
Distribution
Distribution
Franchisee
Merchant Generation
(Bilateral/Power
Exchange Based Sale)
Competitive Bidding
Based Transmission
Projects
Retail Competition
in Power
Distribution
Captive Generation for Captive Power Consumers and Open Access
The market structure may alter significantly in the long-term with the proposed amendments to the Electricity Act, 2003 (EA,
2003) and also on account of technological advancements, such as, the introduction of utility-scale storage systems.
1.2. GENERATION
The installed generating capacity in the country as on 31st March 2017, was 327 GW. This does not include nearly 60 to 90 GW
of captive generation capacity. Grid connected capacity addition during the financial year for the country declined to 17 GW
as compared to capacity addition of 26 GW during the previous financial year. This slowdown in capacity addition has been
due to lack of sufficient growth in demand. Due to low reliability of supply, consumers continue to use captive generation.
The generation portfolio mix saw a substantial increase in renewables based capacities; meanwhile, the share of hydro based
generation in the mix fell to an all-time low. The increase in renewable based generation has been fueled by rapidly declining
component costs, making renewables highly competitive with respect to conventional generation. Also, the capacity addition
has accelerated due to the Government’s push to boost renewable generation. The Government has set a target of 175 GW of
renewable generation capacity for the country by 2022. This is in line with India’s commitments to help arrest climate change
and reduce global warming. This rapid increase in renewables has led to lower plant utilization for thermal generating stations.
Over 30 GW of old and inefficient thermal assets have been identified for phasing out or replacement with new efficient units.
Generation (GW)
Generation (%)
Renewables,
50.0
Hydro,
44.4
Nuclear,
5.8
Others,
0.8
Gas,
25.3
Coal,
189.0
Renewables,
16%
Hydro,
14%
Nuclear,
2%
Others,
0%
Gas,
8%
Coal,
60%
India Generation Mix (in GW) and Share by Generation Source, as of 31st March 2017 (Source: MoP, GoI, CEA)
1.3.
FUEL
Coal produced by Coal India Limited (CIL) and its subsidiaries was 554 MT in FY17 against 539 MT in FY16, reflecting a 3% year-
on-year growth. This higher production by CIL led to a significant drop in coal imports. Domestic natural gas production was
90 I Management Discussion & Analysis
The Tata Power Company Limited 29,146 MMSCM for the period from April to February in FY17 against 29,709 MMSCM for the same period in FY16.
The global coal prices have risen from nearly USD 50/MT (Newcastle FOB) last year to almost USD 80/MT at the end of FY17.
This increase has been despite the growing global trend of moving away from coal based generation. With the requirement of
reducing dependence on coal due to environmental considerations, gas based generation has witnessed growing acceptability
due to its relatively cleaner generation and flexibility in terms of ramp up and ramp down capability, which helps to balance
the variability of renewable generation, though availability of gas has been a significant challenge. (Source: www.coalindia.in,
www.petroleum.nic.in)
1.4.
TRANSMISSION
The backbone transmission system in India is mainly through 400 kV AC and 220 kV AC networks, with the highest transmission
voltage level being 765 kV. Total transmission lines capacity increased to nearly 3.7 lakh CKms in FY17, reflecting an increase
of about 26,300 CKms over the previous year.
There has been rapid growth in the transmission sector with over 70 CKms of transmission capacity being added daily against
an addition of 46 CKms a day between 2012 and 2014.
The inter-regional capacity, as on April 2017, was 75,050 MW of which, 47,900 MW capacity has been added in the 12th plan.
(Source: CEA Executive Summary, Power Sector, March 2017; www.powermin.nic.in)
1.5. DISTRIBUTION
The financial health of state electricity utilities in retail distribution continues to remain the most critical issue for the sector’s
viability. To resolve the challenge in the distribution business, the Government of India launched the Ujwal DISCOM Assurance
Yojna (UDAY) to reduce the financial burden on state DISCOMs by transferring 75% of accumulated losses/debts of the DISCOM
to the state in a 2-step phased manner over financial years 2016-2018. It also targets the reduction of AT&C losses thereby
reducing leakages in the system. As of 2nd April 2017, 27 states and UTs have signed up for UDAY and bonds for more than ` 2.3
lakh crore have been issued by the state governments and tariff revisions have happened in 25 states/UTs since the beginning
of the scheme. The progress on the reduction of AT&C losses has been slower, with the total AT&C loss nearing 23% for the
participating states. (Source: www.uday.gov.in)
As part of the proposed amendments to the EA 2003, separation of the wires and supply businesses is envisaged. This is
expected to increase competition in the supply sector, though reliability of wires and network remaining with the incumbent
distribution company could continue to pose challenges. However, the process of amendment has slowed down and may not
find favour amongst States.
1.6.
POWER TRADING
Around 117 Billion Units (BUs) of electricity were traded in the short-term power market during FY17 (as compared to 115
BUs in FY16), accounting for around 10% of the total generation. Out of this, about 34% of trading took place using power
exchange platforms.
With increased opportunities, the challenges in the power trading sector have also grown. The trading margins were under
immense pressure due to both, prevailing lower market rates and competition. The competition grew fierce due to an increase
in the number of CERC licensed traders from 11 in FY05 to 43 in FY17.
At ` 2.41 per unit, the average clearing price for spot markets in FY17 fell by 12% as compared to the previous fiscal. Clearing
price for electricity in the spot market was the highest for South India, with prices ranging from ` 2.79 to ` 2.92 per unit. An
improvement was also noticed in the inter-state transmission scenario due to reduced congestion. In FY17, 1,526 MUs of
electricity could not be traded as compared to 2,014 MUs in FY16.
1.7.
REGULATORY AND POLICY DEVELOPMENTS
Regulatory and policy reforms in the sector are critical given the current challenges across the value chain. The following are
some of the important regulatory and policy changes in FY17:
•
Launch of DEEP (Discovery of Efficient Electricity Price) e-Bidding & e-Reverse Auction portal
On 12th April 2016, the Government of India launched “DEEP (Discovery of Efficient Electricity Price) e-Bidding &
e-Reverse Auction portal” for procurement of short term power by distribution companies. The guidelines for short
term procurement of power have been notified by Ministry of Power w.e.f. 1st April 2016, making it mandatory for all the
Procurer(s) to procure short term power by using this e-Bidding portal. Power procurement from power exchanges are
excluded from the scope of these guidelines. The portal introduces uniformity and transparency in power procurement
by the DISCOMs and at the same time, promotes competition in the electricity sector. The scope of this portal shall
be further expanded to cover medium term and long term procurement of power. This e-Reverse auction process for
competitive procurement is expected to result in overall reduction of cost of procurement of power, thereby significantly
Management Discussion & Analysis I 91
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
benefiting the ultimate consumers. Your Company, through its subsidiary Tata Power Trading Company Limited, has
participated in the reverse e-auction bidding process held on the DEEP portal and has successfully won bids.
•
Flexibility in utilization of domestic coal for reducing the cost of power generation
The Government of India has approved the proposal for allowing flexibility in optimal use of domestic coal in efficient
generating stations resulting in reduction in the cost of electricity generation and reduction in the power purchase
cost of the state distribution companies. All long term coal linkages of individual state generating stations shall be
clubbed and assigned to the respective state nominated agency. Similarly, coal linkages of individual Central Generating
Stations (CGS) shall be clubbed and assigned to the company owning the CGS, to enable efficient coal utilization
amongst end use generating stations. There shall be flexibility in use of such coal amongst the generating stations of
state owned utilities, plants of other state power utilities, company owning the CGS and IPPs, amongst each other. In
case of use of coal in state/central generating plants, the deciding criteria shall be plant efficiency, coal transportation
cost, transmission charges and overall cost of power. In case of use of coal assigned to the state in private generating
stations, power through substituted coal shall be procured on bidding basis from amongst the competing private sector
plants, where the source of coal, quantity of coal, quantum of power, and delivery point for the receipt of power shall
be indicated upfront. Subsequently, Ministry of Power on 20th February 2017, has issued the ‘Methodology for Use of
Coal by State in Private Generating Stations (IPPs)’.
•
MoU signed for third party sampling of coal
Central Institute of Mining and Fuel Research (CSIR-CIMFR) has signed a Memorandum of Understanding (MoU) with
coal supplying companies and power utilities, for quality analysis of coal being supplied to power utilities by coal
companies. The MoU has been followed up by signing of a tripartite agreement amongst CSIR-CIMFR, CIL and The
respective power generation companies. Under the agreement, CSIR-CIMFR would carry out the activities of sampling
and quality analysis at coal loading end on the coal dispatched by CIL to power utilities. The sampling results will be
used to address the issue of grade slippage, incorrect invoicing and issuance of credit notes by coal companies. MPL
has signed the tripartite agreement with CSIR-CIMFR and CIL and CSIR-CIMFR has commenced the activity of sampling
and analysis at loading points from where coal is dispatched to MPL.
•
Guidelines on cross border trade of electricity
Ministry of Power has issued guidelines to facilitate and promote cross border trade of electricity with greater
transparency, consistency and predictability and to minimize regulatory risks. CERC has issued Draft Central Electricity
Regulatory Commission (Cross Border Trade of Electricity) Regulations, 2017 seeking public comments. Issuance of
guidelines by the Ministry of Power and the draft regulations by CERC are positive developments and will pave the
way for sale of energy from Dagachhu hydro power plant in Bhutan, where your Company has shareholding.
•
MNRE - Scheme for setting up of 1000 MW ISTS-connected wind power projects
During this year, the Ministry of New and Renewable Energy (MNRE), formulated a scheme for setting up of 1000 MW
ISTS-connected wind power projects to provide a framework for inter-state sale of wind power at a price determined
through a transparent competitive bidding process. This will not only facilitate the non-windy states/UTs to fulfill their
non-solar RPO obligations but also boost investment in the sector. As per provisions of the scheme, MNRE also issued
guidelines for transparent bidding process for implementation of this scheme.
•
CERC Staff Paper on Introduction of Electricity Storage System in India
Balancing of grid with large scale integration of various intermittent energy sources (renewable) in the electricity mix
is a major challenge. As part of one of the feasible solutions, CERC has prepared a paper on ‘Introduction of Electricity
Storage System in India’. The staff paper addresses the probable approaches for usage of storage systems along with
operational and recovery aspects of storage facilities.
•
CERC Determination of Forbearance and Floor Price for the Renewable Energy Certificates (REC) framework to
be applicable from 1st April 2017
CERC has issued the final order on revised price bands for RECs which would be valid from 1st April 2017 onwards. CERC
has lowered the band of prices within which RECs issued to RE generators would be traded in the market. RECs that
were on the verge of expiry have been given an extension till 31st March 2018. The reduced bands would impact the
RE generators. However, discoms, captive and open access consumers are likely to find buying RECs easier for meeting
RPO than buying green power, which is likely to result in increase in demand for RECs.
92 I Management Discussion & Analysis
The Tata Power Company Limited
•
MNRE Draft Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid
Connected Solar PV Power Projects
MNRE also issued the draft guidelines for ‘Tariff Based Competitive Bidding Process for Procurement of Power from
Grid Connected Solar PV Power Projects’ wherein key issues faced by the developers were addressed by introducing
generation compensation for offtake constraints on account of unavailability of the transmission infrastructure/grid
or in the eventuality of a backdown for which the generator is not responsible. Apart from this, some states came out
with the draft state level forecasting and scheduling regulations. Comments were provided on all the above schemes,
guidelines, orders and regulations in their draft stages.
•
Revised norms of Emission standards for Coal based thermal power plants by MoEF&CC
MoEF&CC has notified revised norms of emission standards for coal based thermal power plants. It comes as an
endeavour to move towards stricter emission norms to minimize pollution. Your Company welcomes such an initiative.
These standards are proposed to be implemented in a phased manner. Thermal power plants are categorized into 3
categories, viz. those (i) Installed before 31st December 2003 (ii) Installed after 2003 up to 31st December 2016 and (iii)
to be installed. The time period given for implementation of these rules is 2 years from the date of issue i.e. by 7th
December 2017. Your Company would be required to comply with the new norms as applicable to individual units/
plants. Assessment of individual units has been done. Your Company is hopeful of being protected against the cost
implications as the changes to be effected should be treated as a change in law and the cost can then be recovered. To
ensure this, the necessary petitions have been filed with regulators to allow additional costs. In few cases where there
are difficulties owing to layout, land availability, water etc., it has been suitably escalated with MoEF&CC and CEA/MoP,
GoI.
1.8.
INDUSTRY DEVELOPMENTS IN INTERNATIONAL FOCUS GEOGRAPHIES
With solar power coming of age and becoming highly competitive as also the demand-supply position re-balancing itself due
to various growth imperatives, the power sector landscape across different focus geographies such as ASEAN countries, Middle
East, Georgia, Turkey and sub-Saharan Africa region has been evolving rapidly.
The global coal prices saw a spurt during the last year, before stabilizing at more sustainable levels. However, the sector is
highly volatile and continues to be swayed largely by the demand-supply position of China.
Georgia and Turkey are exposed to regional conflict but continue to remain politically stable. Executing an accession agreement
with the Energy Community, Georgia hopes to be better integrated with the European Union and improve the attractiveness of
investments in the electricity and gas sectors. Turkey has a mature electricity market, a regulatory framework in alignment with
EU legislation, private sector involvement and a very high level of merchant market density. South Africa is heavily dependent
on coal as a primary energy source, as well as a source of revenue for the country. The electricity system faces the challenges
of an ageing coal generation fleet which requires more maintenance, delays in the construction of new coal-fired power plants
and a potential shortfall in coal supply from the end of the decade if there is no substantial investment made in new mines
and infrastructure to support those mines. The country’s dependence on coal results in a carbon intensive economy and the
country has made ambitious commitments in the international arena to reduce its carbon emissions by 34% by 2020 and by
45% by 2025 from business as usual. To achieve this goal, South Africa is in the process of designing and implementing a carbon
tax, a carbon budgeting system and compulsory greenhouse gas reporting.
Sub-Saharan Africa is rich in energy resources, but very poor in energy supply. Ghana, Liberia, Kenya and Zambia offer a politically
stable environment, but are economically supported by US foreign aid agency Millennium Challenge Corporation (MCC). MCC
forms bilateral partnerships with poor countries that indicate commitment to good governance, economic freedom and the
grants are extended to restructure sectors like education, energy, health, water, sanitation and irrigation etc.
The economic outlook for Vietnam seems to remain stable and it continues to be an attractive destination due to the opportunities
it offers in the conventional and renewable generation market. Due to its growing domestic demand and low labour costs,
it is one of the favorite investment destinations in the ASEAN region. The recent development of the US withdrawing from
Trans-Pacific Partnership (TPP) is not likely to have a large impact on Vietnam’s economy.
The new government in Myanmar, which assumed office in April 2016, is expected to come up with revised policies on use of
fossil fuels and renewables. The power situation in the country remains weak and augmentation of the sector is expected to
revive the economy.
Your Company, through its Representative Office in Hanoi, continues to engage with stakeholders in the country to evolve
policies supportive of large investments in the power sector and as also to develop newer opportunities in the renewable space.
Similarly, the Company, through its Representative Office in Yangon, continues to watch the developments in Myanmar with
a view to spot new opportunities. Your Company continues to remain optimistic on both Georgia and Turkey and evaluate
Management Discussion & Analysis I 93
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
opportunities as they arise. Your Company’s joint venture with Exxaro, viz. Cennergi, declared commercial operation of its 230
MW wind farms in South Africa during the year.
In the competitive environment, arduous and long drawn processes in allotment of new generation licenses are key issues which
need to be addressed by the governments in international geographies to make the sector attractive to investors. The impact
of the US Administration’s choice of pro-fossil fuel and its impact on climate-change agenda is yet to be felt and assessed.
2.
STRATEGIC FOCUS OF TATA POWER
Your Company is an integrated player across the value chain of power business allowing it to capitalize on market opportunities
in all segments. The key target areas for the Company at this point of time is scaling up of generation capacity with a focus on
renewables and Value Added Businesses viz. services, trading etc.
There has been a growing shift away from coal based generation in the developed economies of the world. Since a significant
percentage of the population in India is still awaiting 24x7 power supply and coal being an abundant resource in India, coal
is expected to remain a significant fuel source in the country’s quest for providing power to all its citizens. About 19% of the
Indian population does not have access to power, as also, the country’s per capita consumption is much lower than the global
average at ~1000 kWh/year - it is important to improve both these aspects. Conventional as well as distributed format of
generation therefore, are critical to the success of Indian power sector.
There is a substantial governmental push to establish renewable power generation capacity to meet the 175 GW target by
2022. This has seen aggressive bids by some renewable energy players in recent auctions. India’s solar tariffs have dropped by
40% to `2.44/unit over a period of 5 months from January 2017 to May 2017. The drop looks excessive as module prices are
down by 6% during this period and further 5% reduction is due to Indian Rupee’s appreciation during the same period. At the
current rate, sector analysts and experts point out that developers might not be able to repay their debt and at best, there will
be meagre equity returns. It may be possible that developers expect a steep drop in module prices to make a reasonable return.
If the capital cost does not fall, there could be significant risk. Given the short gestation periods of execution of renewable
projects, these projects could witness stress soon, even if one assumption does not go in the developer’s favour (capital cost,
interest rates, PLF, forex prices etc.)
94 I Management Discussion & Analysis
The Tata Power Company Limited
Your Company has decided to refrain from taking undue risks of making aggressive bids, as it is expected that there would be
sufficient growth opportunities (both organic and inorganic) in future, with a more reasonable and acceptable risk profile. We
believe this prudent strategy is a differentiator for your Company.
With a proactive view on India’s national commitments and keeping in mind the vision of Tata Group’s founder to provide reliable,
affordable and clean power, your Company, as part of its Strategic Intent 2025, plans to maintain a portfolio of options spread
across its focus geographies for its generation mix and also plans to have 30-40% of its generation capacity from non-fossil
based sources (renewable and hydropower) by 2025, thus going beyond the national goals for clean power generation. Your
Company, through its subsidiary, Tata Power Renewable Energy Limited (TPREL), has successfully acquired one of the largest
Renewable Energy portfolios available during the year with a capacity of over 1 GW (1140 MW). This portfolio comprises of 995
MW and 146 MW operating solar and wind assets spread over ten states. With this, the share of non-fossil based generation in
Tata Power’s overall portfolio is about 30%. This acquisition has enabled the Company to become one of the largest renewable
players in the domestic market.
The sellers (Welspun group) had appointed Barclays Capital Inc, who carried out a two stage comprehensive bid process to
select the bidder for acquisition of its subsidiary Welspun Renewables Energy Private Limited (WREPL). Shortlisted bidders were
invited to carry out detailed due diligence and make a final offer basis initial non-binding indicative proposal. As per market
information, TPREL was in competition with a reputed International firm and other major Indian companies in Energy Sector for
the said deal. A detailed due diligence (DD) process involving, technical, real estate, commercial, accounting, taxation, legal and
secretarial matters was followed to identify risks in the deal and the same were factored in the proposal. For this, the Company
deployed reputed firms to support its DD process, valuation process and also for documentation. The valuation of the Welspun
Assets was based on the future cash flow potential of the projects that were primarily in the operational stage with little or
no implementation risks and were already supplying power to Indian DISCOMs through valid PPAs. This acquisition is value
accretive to Tata Power. It has improved the share of renewables in Tata Power portfolio. Also, due to the good quality of the
assets ready to generate cash with strong PPAs and assets spread across 10 different states of India, it has provided adequate
diversification of risks. The market feedback on the strategic fit as well price of the acquisition paid by Tata Power has been
very positive. This is also reflected in comparative deals in the solar space.
The company acquired by TPREL is only the asset company along with used and significant unused exploitable land for future
expansion. TPREL did not acquire the erstwhile promoters’ EPC company. The Company, through its Audit Committee and
Board, evaluated deeply all such inputs that were received by the Company from various stakeholders and found them to
be either irrelevant (as interpretations drawn were from companies that were not acquired) or based on outdated facts. The
Company reiterates that the acquisition is value-accretive. The EBITDA contribution for the period that the company was with
TPREL is as under:
For the period: 14th September 2016 to 31st March 2017
EBITDA
PAT
(Table 1)
` crore
539
106
While the Indian market continues to remain the primary focus of business, your Company has made significant investments
in projects in select international geographies to diversify its portfolio. In line with the international strategy, the Company
continues to evaluate investment opportunities in ASEAN countries, Middle East, Georgia, Turkey and sub-Saharan Africa
region. The current power sector business in these geographies has been facing challenging times due to reduced investment
opportunities in coal based generation, currency volatilities and political risks. In order to minimize the possible impact due to
these risks, your Company has followed a strategy of having local partners, undertaking government backed contracts, etc. Your
Company has been conscious about the capital allocation to international projects, thereby limiting exposure to aforementioned
risks. Currently, 4.9% (512 MW) of you Company’s generation capacity is based in international geographies with another
187 MW under execution. Your Company continues to evaluate various opportunities with low capital requirements, such as
providing management and technical advisory services in generation and distribution businesses.
The Company has been focusing on the consumer end of the value chain through distribution network development and
power supply business. The Company is also looking at scaling up its value added businesses, i.e., businesses with little or no
capital investment (power trading, O&M services, solar EPC), substantially over the next few years.
Tata Power group’s leverage has increased in the recent past primarily due to the debt taken for the WREPL acquisition and
due to the deterioration in CGPL’s net worth. Your Company is committed to reducing the debt levels through various options
including monetization of non-core assets/investments. These initiatives will be undertaken with the objective of achieving
an optimum Debt-to-Equity and Debt-to-EBITDA ratio while at the same time providing enough headroom for capitalizing
on growth opportunities. Your Company is actively pursuing steps needed to achieve this objective in a time-bound manner.
Management Discussion & Analysis I 95
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Considering the fact that the Company is looking for significant growth in the years ahead, mobilization of resources is a critical
activity. One such source is divestment of such investments that are not core to the power and allied areas of your Company’s
operations. The Company would continue to evaluate its investments in the non-core businesses and depending on market
situation and opportunity, divest them at an appropriate juncture.
3.
OPPORTUNITIES AND OUTLOOK
As per the Draft National Electricity Plan (2016) released by the Central Electricity Authority (CEA), new coal based capacity
additions will be required only after 2027. A lot of coal based generation capacity which got created on the basis of the earlier
demand projections which have not fructified, is as such, rendered stranded. As the power sector is seen as a key driver
supporting the growth of the nation at large, the Government at the Centre has been pursuing reforms which are expected to
ease some of the known constraints. Your Company keeps a close watch on opportunities arising in the sector.
•
Generation
The three focus areas for the Company would be evaluation of opportunities for a) acquisition of “stressed” thermal
assets in India through the power platform, viz., Resurgent Power Ventures Pte. Ltd., Singapore, formed by Tata Power
International Pte. Ltd. in partnership with ICICI Bank and three international strategic investors viz. Caisse de dépôt et
placement du Québec (CDPQ) of Canada, Kuwait Investment Authority (KIA) and State General Reserve Fund (SGRF)
of the Sultanate of Oman; b) greenfield development and M&A in renewable space, particularly solar power and c)
greenfield development and M&A in select international geographies, particularly in renewables.
•
Transmission
During the year, there has been considerable progress made in transmission sector in the country. Critical regional
links have been commissioned/progressed well thereby facilitating inter-regional transfer of power. In addition, the
Government has announced green transmission corridors which will provide further impetus to the development of
renewable power. Over the next few years, the demand for transmission capacity is expected to increase significantly,
driven primarily by increase in generation capacity and also due to requirements of open access, inter-regional transfers
and integration of infirm renewable power in the system.
Your Company continuously pursues the expansion of its transmission network in the Mumbai and Delhi License Areas.
It also keenly tracks any growth opportunities in the transmission sector and reviews each such opportunity for risks
and rewards. The Company shall certainly pursue good opportunities for investment.
•
Distribution
With growing focus on improving the state of distribution business, some states have been adopting an input based
Distribution Franchisee (DF) model. Currently, other than in Rajasthan, Uttarakhand and Jharkhand, there are not
many urban centres which have been notified under the Franchisee opportunity. The Company constantly evaluates
such opportunities and was successful in bagging Ajmer DF recently in Rajasthan. It will continue to pursue other
opportunities of partnering with States/Union Territories that have the institutional will and conviction to reform and
drive operational improvement.
The Company continues to track developments with respect to amendments to EA, 2003, which might create
opportunities in electricity supply business.
•
•
Fuel
The Company continues to evaluate sourcing and investment opportunities in thermal coal mines to meet the current
and future generation needs.
Investments
Your Company’s investments in the promoter companies of Tata Group, namely Tata Sons Limited and Tata Industries
Limited, have greatly helped it to be an integral part of the prestigious Tata Group and to pursue new and emerging
business opportunities and collaborate with best-in-class companies. Tata Industries has initiated and promoted Tata
ventures in several sectors, including clean energy, data analytics, digital health, control systems, information technology,
financial services, auto components, advanced materials, telecom hardware and telecommunication services. Tata
Sons has promoted companies such as Tata Consultancy Services (TCS), investment in which has yielded good returns
to your Company. By virtue of holding equity in Tata Sons and Tata Industries, your Company had the opportunity to
invest in TCS, Trent, Tata Communications etc. which have been financially beneficial to the Company. The investments
continue to remain important for your Company. A note relating to the accounting of these investments is included in
the Annual Report.
96 I Management Discussion & Analysis
The Tata Power Company Limited
4.
RISKS AND CONCERNS
Tata Power is faced with risks of different varieties, all of which need different approaches for mitigation:
•
•
•
Risks common to several players in the sector and country of operation.
Risks very specific to the Company due to the way its businesses/operations are structured.
Disaster Management and Business Continuity risks which are by nature, rare, but are events with dramatic impact.
The key risks and concerns facing the Power sector in India are as follows:
•
•
•
•
•
•
•
•
•
•
•
•
India’s current domestic capacity is heavily skewed towards fossil fuels which negatively impacts the environment.
Regulatory orders to address climate change can adversely affect valuations of coal based power stations.
Pace of economic growth may slow down leading to lower growth in demand for power in India.
The poor financial health of state discoms continues to be a factor that impedes the growth of the sector.
Slowdown in the pace of regulatory reforms in the country may affect renewables scale-up, revision of Standard Bidding
Documents, amendments to Electricity Act, etc.
Though renewables are credited from an environment perspective, a rapid expansion could be at the cost of thermal
capacity utilization, thus adding net fixed costs to the system which is already overstretched.
Infrastructure constraints such as railways and port capacity may affect the transportation of coal.
The imposition of export restrictions or levy of taxes by energy exporting countries could make the cost of imported
energy into India more expensive and unattractive for discoms.
Shortage of domestic gas and expensive LNG imports affects the financial viability of gas-based power plants.
Delays in land acquisition, environmental clearances and other approvals remain an area of concern. Lack of water is
another threat to the capacity addition plans.
The availability of cost-effective capital for funding of new projects could be a cause of concern given banks’ current
exposure to power sector and stranded assets, which may result in NPAs. This is compounded by the aversion of
multilateral agencies such as ADB, World Bank etc. towards funding coal based power plants.
Application of new environment norms without appropriate reforms on the regulatory side to offset the commercial
implications of the cost of implementation.
Cyber Security risk which is affecting various sectors in the world.
The key risks and concerns specific to your Company are as follows:
•
•
•
•
•
•
•
Cheaper coal sourcing for CGPL to contain under-recovery.
Your Company is working with key stakeholders for extending the sale of power beyond current PPAs through Regulated
Sale, Merchant/Bidded Sale, Captive Sale.
Risks in Mumbai business due to frequently changing regulatory directions in respect of the distribution business
Risks in Mumbai generation business due to expiration of PPA in 2018 and the extension of the PPA for remaining life
of generating units. However, considering the importance of embedded generation units, your Company is pursuing
with regulators for its continuation.
Volatility in exchange rates and coal prices affecting the valuations of coal mines.
Civil society’s concern regarding emissions and water, thus putting pressure on existing generating assets.
Balancing growth with the right balance sheet leverage.
Your Company is in advanced stages of discussion with the aforementioned distribution licensees to sign new PPAs and is also
working to tie-up any surplus power via the open access or captive route.
For the Company’s foray in the domestic and international markets, adequate assessment of the risks and returns associated
with each investment has been carried out and appropriate mitigation measures have been put in place.
British Standards Institution (BSI) had done an audit and awarded ISO 22301:2012 - Societal Security and Business Continuity
Management System, to Tata Power and its major subsidiaries viz CGPL, MPL, TPDDL, TPTCL, TPSSL, TPREL, PTL, CTTL and IEL. In
FY16, your Company had further combined its Business Continuity and Disaster Management Plans which had been audited by
BSI before awarding the ISO 22301:2012 certification. In May 2016, your Company celebrated Business Continuity Awareness
Week for increasing the level of awareness amongst all the employees. Various initiatives like mock drills, training sessions,
posters/ screen savers, quiz competition, etc. were undertaken across Tata Power group. In February 2017, BSI has conducted
the audit and recommended your Company for recertification for ISO 22301:2012.
Management Discussion & Analysis I 97
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
5.
OPERATIONAL PERFORMANCE
Consolidated operations of Tata Power are categorized into two segments: Power and Others. Report on the performance
and financial position of each of the subsidiaries, joint ventures and associate companies has been provided in Form AOC-1.
The Company’s business is primarily driven by earnings from generation, transmission and distribution business and coal
companies which make up 76% of the total business revenues as well as EBITDA. Majority of the businesses in the Company’s core
portfolio are based on assured returns through regulated businesses in the fields of generation, transmission and distribution.
59% of the revenues and 44% of the EBITDA contribution in the last fiscal came from the regulated businesses with the balance
coming from businesses with market linked returns. The large section of the portfolio being under the regulated framework
demonstrates the strong and reliable fundamentals of the Company’s finances. Also, the balance between regulated return
businesses and market linked businesses in the Company’s portfolio aids the Company in capitalizing on favourable market
conditions while ensuring stable returns.
Highlights of operational performance of key entities are listed below.
5.1.
THE TATA POWER COMPANY LIMITED
Net sales (` crore)
PAT (` crore)
Particulars
FY17
7,282
283
(Table 2)
FY16
8,316
1,355
PAT was lower mainly due to loss towards contractual obligation for purchase of shares in TTSL from Docomo along with the
increase in finance cost and impact of favourable regulatory orders in the previous year.
5.1.1.
GENERATION
Generation (Availability) and Sales (MUs)
95%
93%
3
3
0
6
,
6
2
2
6
,
)
s
U
M
(
n
o
i
t
a
r
e
n
e
G
93%
96%
4
6
5
2
,
6
9
7
2
,
y
a
b
m
o
r
T
a
r
e
b
o
o
J
j
FY17
FY16
N% Availability
100%
94%
96%
98%
4
4
4
1
,
7
6
0
1
,
6
1
7
7
1
6
98%
97%
6
1
7
8
2
7
i
a
d
a
H
l
s
o
r
d
y
H
d
n
W
i
100%
100%
4
5
l
r
a
o
S
NOTE - Availability is the performance factor in the Company’s control. MUs sold is a function of drawal by consumers/discoms
and is not controlled by the Company
•
•
Trombay: Generation was lower than previous year due to decreased load demand by procurers and a major overhaul
of Unit 5, which remained down for 31 days. The plant has undertaken several operational improvement measures
including reduction in auxiliary consumption etc. Trombay Thermal power station has also received the ISO 50001
certification for Energy Management System.
Jojobera: Generation was lower than previous year on account of reduced load demand. The plant has undertaken
certain improvement measures which have resulted in improvement in heat rate and reduction in auxiliary consumption.
98 I Management Discussion & Analysis
The Tata Power Company Limited
•
•
•
Haldia: Generation from Haldia was marginally lower in FY17 mainly due to lower supply of flue gas from the process
plant of the source company. The plant has undertaken several measures for operational improvement including boiler
efficiency improvement through partial removal of water wall refractory and reduction in duration of boiler outage
through improvement in cooling process.
Hydro: Generation was higher than previous year due to above normal rainfall in the hydro catchment area and above
normal inflow of water into lakes. Lake levels have been maintained to meet the requirement of peak power till next
monsoon (i.e. till June-July 2017).
Renewables (Wind and Solar): Generation from wind and solar includes TPREL assets; solar generation was higher
than the previous year due to better maintenance practices like optimized module cleaning cycles, additional tilts at
solar plants and higher wind resources during high wind season of FY17. Your Company added 31 new solar sites and
2 wind sites as part of acquisition of Welspun. With this, the Company and its subsidiaries now operate in 13 states and
75 sites.
5.1.2. TRANSMISSION
•
•
•
•
The Transmission assets, which were a part of the Mumbai License Area, had a grid availability of 99.63% as against
the MERC norm of 98%. Availability was maintained at high levels by proactive actions taken based on preventive
maintenance practices, effective condition monitoring and judicious planning and execution of planned outages.
Following key projects were executed during the year:
o
o
o
Second Circuit of 220 kV Salsette-Saki transmission line commissioned successfully during May 2016.
Mahalaxmi 245 kV GIS and 33 kV GIS taken in load service on 21st November 2016.
Conversion of bays to GIS in FY17.
The Company organized special awareness programs during pre-monsoon, Ganapati festival and Sankranti season in
the vicinity of High Tension (HT) lines in Mumbai, under its Jan Jagruti Abhiyaan initiative. The objective is to reduce
electrical accidents that may be caused by unauthorized living in areas which are close to high voltage transmission
lines. This is fourth year of success where no line tripping or human suffering was there due to kites during Sankranti
season. Around 40,000 people were sensitized in various sessions throughout the year.
To spread awareness on safety across the state of Maharashtra, your Company has actively participated in “Electrical
Safety Week” organized by Chief Electrical Inspector as per direction of Government of Maharashtra. Tata Power’s team
arranged street plays/skits in various villages in Konkan region, hosted the closing session of Electrical Safety Rally at
Tata Power Salsette Receiving Station, participated in Mahacharcha on Doordarshan and received an award for zero
accidents from GoM.
5.1.3.
DISTRIBUTION
The highlights of the Mumbai Distribution business are as follows:
•
•
•
Distribution achieved 4977 MUs sales including 540 MUs to railways outside the license area, through Tata Power –
Distribution MoU. Consumer base reached 6,75,371 in FY17 which includes 5,70,653 consumers and 1,04,718 direct
consumers.
Customer Satisfaction Score of 82% was achieved in FY17.
Digitalization of business processes and customer integration achieved through initiatives like:
o
o
o
o
Tata Power mobile application which launched on android as well as on iOS platform won the SAP ACE Award
2016
Push-pull SMS in order to resolve various consumer queries
Low cost solution of spot billing and spot collection introduced for consumers (around 5000 consumers being
benefited)
Online application facility launched on Tata Power web portal for:
New power supply connection
Open access
Reconnection
Roof top solar connection
o
Outage information (planned outage) available on customer portal and for CRC executives
Management Discussion & Analysis I 99
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE o
More payment options made available for consumers through wallets such as Paytm, Oxicash, Airtel money,
Ola money, Pay Zapp, M-pesa etc.
•
To enhance safety, overcoming the challenges of paucity of space and care for environment, Tata Power has
commissioned:
o
o
o
o
o
The first Multi Civic Amenities (MCA) substation of Mumbai City
The first two tier distribution substation having ester filled power transformer on ground floor and HT and LT
switchgear, auxiliaries on the 2nd tier
A tamper proof feeder pillar in order to avoid illegal use for tapping of power supply
4th distribution substation (E-House) installed and successfully commissioned. E-House is a complete distribution
substation designed, engineered and factory integrated, tested, validated and delivered on site.
An automatic transfer of source by using RMU was successfully commissioned and put in service. It ensures
power supply to the consumer through second available feeder without any manual intervention when main
source fails.
•
MOU between Mumbai Metro Rail Corporation Limited (MMRCL) and Tata Power signed to provide power supply to
Metro-3 Project
5.1.4. SERVICES
In FY17, the Services division provided Project Management Services for about 1772.5 MW capacity of assets, O&M services for
399 MW capacity of assets, Corporate Management Services for 1492.5 MW capacity of assets and Asset Management Services
for 488.2 MW capacity of Wind and Solar assets. In addition, the division provided services such as GIS testing, electrical testing
etc., for various clients.
5.1.5 STRATEGIC ENGINEERING DIVISION - SED
Tata Power Strategic Engineering Division (SED) achieved a turnover of ` 548.14 crore in FY17 with an order backlog in excess
of ` 1,220 crore as on 31st March 2017.
Some of the noteworthy achievements of SED during FY17 are listed below:
•
•
•
•
•
•
•
•
SED delivered the first indigenous 155mm/52cal towed gun which is the world’s first towed gun with all-electric drives.
Post successful engineering testing, the Advanced Towed Artillery Gun System (ATAGS) was displayed at the Republic
Day parade 2017.
SED has received a Pinaka Order – the first sizeable weapon systems order placed with the private sector in last 2.5
years, from MoD.
SED provided police and para military forces with Generation 3 Night Vision Devices (NVDs) with increased ability to
see in the dark.
SED and Javelin Joint Venture (Raytheon and Lockheed JV) entered into an agreement for co-production and technology
partnership for Javelin ATGMs for Indian Army’s Armoured vehicles program (BMP-II upgrade).
MOU signed between IIT Guwahati and Signal Intelligence Directorate, with SED as the technology partner, to develop
an advanced audio analytics system based on Artificial Intelligence and Big Data Analytics.
A Fog Vision System called Trinetra developed and demonstrated to Railways in the presence of the Prime Minister.
Subsequent to completion of the NABL Re-Certification Audit in October 2016 of the EMI EMC and ENV Test Labs, SED
achieved Certification for Testing coverage of the additional new fields of Locomotives, Optronics, Telecom and Wireless
Products and Electric Machinery.
In recognition of SED’s HR Practices
o
o
o
The OD intervention by HR towards cultural transformation (DISHA) was featured in Dun & Bradstreet best
practices 2017, and won first place at Business Excellence Awards 2016 (organized by Businessworld) and HR
Game Changer Awards (2017).
Peak Performance for women employees was featured as HR Best Practices 2017 by Dun & Bradstreet.
SED featured in Working Mother’s Media & Avatar “100 Best Companies for Working Women in India” under the
D&I Initiative and was ranked at 20th position.
100 I Management Discussion & Analysis
The Tata Power Company Limited
5.2.
COASTAL GUJARAT POWER LIMITED - CGPL (4,000 MW)
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY17
25,302
6,055
(850)
(Table 3)
FY16
23,679
5,978
1,437
Loss in FY17 was mainly due to increase in fuel prices, the under-recovery partly offset by reduction in finance cost and forex
loss. Further, profit during FY16 was mainly due to reversal of impairment of ` 2,436 crore on property plant and equipment
and intangible assets.
Under-recovery of fuel cost is listed below:
Particulars
Total Revenue * (` crore)
EBITDA (` crore)
Fuel under-recovery**
` crore
` per kWh
FY17
5,843
328
(1,524)
(0.58)
(Table 4)
FY16
5,414
733
(806)
(0.30)
*Total Revenue consists of Revenue from Operations and Other Income
**Consists of total coal cost under-recovery (revenue net of coal costs), revenue includes UI revenue and supplementary revenue
APTEL had directed CERC to assess the compensatory relief to CGPL as may be available under the PPA. On appeals filed by
Procurers in the Supreme Court, the Court rejected the Company’s claim on the grant of compensatory claim due to change
in law or force majeure event. As the Company had not recognized any revenue for compensatory tariff till date, there is no
impact of the Supreme Court order on the financial statements.
It is pertinent to note that decrease in EBIDTA and, consequently, PAT in CGPL is due to the sharp increase in coal prices in the
second half of FY17. The Company has a 30% stake in the Indonesian coal mines and its proportionate capacity ownership
matches with the coal requirement at the Mundra plant. This acts as a natural hedge.
Regulatory matters
Kindly refer to Section 8.1 of the Board’s Report of this Annual Report for Regulatory and Legal updates pertaining to CGPL.
5.3. MAITHON POWER LIMITED- MPL (1,050 MW)
Type of entity: Subsidiary (Tata Power: 74%, DVC: 26%)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY17
6,957
2,405
256
(Table 5)
FY16
6,781
2,312
190
PAT increase is mainly due to reduction in finance cost on account of lower borrowings and refinancing, higher revenue on
account of entire installed capacity being tied up, and gain on mutual fund investments.
The improvement in financial performance in FY17 was on account of full tie up of sale of power followed by improved
operational and financial performance, lesser outages and lower operating expenses on account of fuel.
The credit rating of the Company has been upgraded from CRISIL AA-/ (stable) to CARE AA / (stable).
The company has issued the 2nd tranche of NCDs of ` 500 crore at 8% fixed interest rate on 9th February 2017. The NCDs have
a door-to-door maturity of 10 years with redemption of 20% each year from 6th year onwards.
Awards and accolades received in FY17:
•
•
•
•
•
CII BE Star Awards - Leader for Excellence in Operations Management
CII BE Star Awards - Emerging Leader for Excellence in People Management
SAFEE Global Award for Energy management
FICCI Awards for Business Excellence
NSC Bronze Award in Manufacturing sector for Safety Management
Management Discussion & Analysis I 101
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
5.4.
INDUSTRIAL ENERGY LIMITED- IEL (375 MW)
Type of entity: Subsidiary (Tata Power: 74%, Tata Steel: 26%) (Joint Venture under Ind AS)
(Table 6)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
PAT increased due to increase in lease income, as a result of Kalinganagar Units 1 & 2 being operational throughout the year,
partly offset by increase in finance cost and in taxes pursuant to introduction of IndAS.
FY17
2,376
528
62
FY16
1,730
448
55
IEL operates a 120 MW coal based plant in Jojobera. It also operates a 120 MW co-generation plant (Power House #6) in
Jamshedpur, inside the Tata Steel plant which is based on blast furnace and coke oven gas. It has commenced operation of 2 out
of 3 units of 67.5 MW each of co-generation plant at Kalinganagar, Odisha, deploying production gases from Tata Steel’s plant.
Two units (Unit 1 & 2) of the plant have been synchronized on 1st February 2016 and 11th February 2016 respectively. Both units
have been certified for ISO 9001-2015, ISO 14001-2015, OHSAS 18001-2007 & ISO 50001-2011 (Energy Management system).
Project Execution
The company is executing the third unit of 3 x 67.5 MW co-generation plant at Kalinganagar, Odisha, deploying production gases
from Tata Steel’s plant which is under development, based on discussions with Tata Steel for the phase two of the steel plant.
5.5.
TATA POWER RENEWABLE ENERGY LIMITED - TPREL (1459 MW)
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
The numbers presented above are consolidated TPREL numbers including WREPL.
FY17
533
985
140
(Table 7)
FY16
328
240
15
The Company’s higher revenue and PAT was due to addition of new wind and solar capacity during the year, as well as stabilization
of capacities added in the previous year. New capacity was added during the year through the 44 MW wind farm at Rojmal in
Gujarat, 100 MW wind farm at Nimbagallu in Andhra Pradesh and 15 MW solar plant at Belampalli in Telangana. The year also
saw significant capacity addition through M&A with 1010 MW* of solar and wind capacity through the acquisition of Welspun
Renewables Energy Pvt. Ltd., and 30 MW wind farm at Jath in Maharashtra through the acquisition of IndoRama Renewables
Jath Ltd. The overall commissioned capacity at the end of FY17 was 1459.2 MW.
*The corresponding DC capacity is 1140 MW, while the PPA capacity is 1010 MW
5.5.1. WELSPUN RENEWABLES ENERGY PRIVATE LIMITED - WREPL (CONSOLIDATED)
Type of entity: Wholly owned subsidiary (through TPREL)
TRPEL acquired WREPL in September 2016. WREPL is now a fully owned subsidiary of TPREL and has one of the largest operating
solar portfolios spread across India in the states of Rajasthan, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Karnataka, Punjab,
Maharashtra, Gujarat and Bihar. It has an operating capacity of 1140 MW out of which 995 MW is Solar and 146 MW of Wind
Power. A major part of the capacity is in Tamil Nadu, followed by Madhya Pradesh, Karnataka and Andhra Pradesh as indicated
in the table below.
State
Sr. No.
1
2
3
4
5
6
7
8
9
10
Tamil Nadu
Madhya Pradesh
Karnataka
Andhra Pradesh
Maharashtra
Rajasthan (Solar + Wind)
Gujarat
Bihar
Punjab
Uttar Pradesh (Honda Rooftop)
Total Solar & Wind Capacity
102 I Management Discussion & Analysis
(Table 8)
Capacity in MW
302
151
133
131
72
218
50
44
38
1
1140
The Tata Power Company Limited
Operating performance
The integration of WREPL is nearing completion. The net generation achieved by WREPL in FY17 was 1475 MUs of which 879
MUs have been generated since acquisition.
Financial Performance
(Table 9)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
WREPL has achieved a total revenue of ` 634 crore and a PAT of ` 106 crore post acquisition till the end of March 2017. All
pending projects are now fully commissioned and the company is actively resolving bottlenecks to maximize generation. A
substantial portion of the existing debt has been replaced with lower cost borrowings.
14th September 2016 to 31st March 2017
879
634
106
5.6.
POWERLINKS TRANSMISSION LIMITED - PTL
Type of entity: Subsidiary (Tata Power: 51%, PGCIL: 49%) (Joint Venture under Ind AS)
Particulars
Net sales (` crore)
PAT (` crore)
PAT increased due to MAT credit availed as per the amendment in Income Tax law.
FY17
151
196
(Table 10)
FY16
164
122
Operations
The availability of the lines was maintained at 99.30% for Eastern Region in FY17 (previous year availability stood at 99.14%) and
99.98% for Northern Region (previous year availability was 99.91%), as against the minimum stipulated availability of 98.50%.
5.7.
TATA POWER DELHI DISTRIBUTION LIMITED - TPDDL
Type of entity: Subsidiary (Tata Power: 51%, Government of National Capital Territory (NCT) of Delhi: 49%)
(Table 11)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
PAT increased with increased volumes and reduction in finance cost.
Operations
FY17
8,270
6,745
262
FY16
7,868
6,662
175
In FY17, TPDDL had a registered base of 15.80 lakh consumers spanning across an area of 510 sq. km. in Northern and North-
Western part of Delhi. The AT&C losses of TPDDL stood at 8.60% against 8.80% last year. TPDDL also met a peak demand of
1791 MW in FY17. TPDDL, in its strive to enhance reliability, has been able to reduce the System Average Interruption Duration
Index (SAIDI) to a level of 43 hours against 45 hours in previous financial year.
TPDDL attained Customer Happiness & Delight Index of 90% against 84% in the previous measurement (conducted once in
two years ) on account of strengthening the network to enhance power reliability and initiatives taken to ease the process
of metering, billing and payment along with customer satisfaction initiatives. This is also reflected in reduction in complaints
per 1000 by 40% from 1.19 to 0.74. TPDDL is one of the two participating power utilities from India in ‘Ease of Doing Business
Survey’ conducted by World Bank. Under “Getting New Connection” India’s ranking has improved to 26 in 2017 from 70 in 2016
and 137 in 2015.
On the technology front, TPDDL implemented Field Force Automation (FFA) for automation of Metering services and attending
to complaints and Smart Revenue Recovery Device (SMRD) for capturing real time updates, photographs etc., hence making
the recovery process more effective. Apart from this, TPDDL has successfully completed Integrated Communicating Technology
(ICT) project which involved migration from old technology to newer systems for connecting various offices, grids etc. TPDDL
also set up a state-of-the-art ‘Smartgrid Lab’ demonstrating the smart grid technologies being used worldwide with integration
of roof top solar, energy storage, E-vehicle charging facility, demand response and micro grid facilities.
In view of its vision of growth beyond its licensed area, TPDDL has supported your Company in enhancing its footprints and
emerge as a winner of the bid for distribution franchisee for the Ajmer City Circle for a period of 20 years. It has also entered into
management and technical services agreement of Kaduna & Kano Distribution Companies (Nigeria). Apart from this, it has also
worked on some critical projects including Smart Grid Pilot Project in Chandigarh, Jharkhand PMC services for DDUGJY, World
Bank - Technology Training and USTDA Funding - SMART Grid Training, Project Management Consultant for Implementation
of Assam Solar Rooftop Project, SCADA / Network Protection Study Report Consultancy in Bangladesh etc.
Management Discussion & Analysis I 103
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Employees being the core strength of the organizations, TPDDL took several initiatives centering on engagement of youth,
development of employees, enhancement of Performance Management System (PMS) and promotion of diversity.
During the year, TPDDL took several initiatives such as:
•
•
•
•
•
•
Commissioning of 12 KW Micro Grid at Tayabpur, District Vaishali, Bihar benefiting 160 households
Setting up a test lab to optimize cost and enhance efficiency of batteries and DC appliances
Signed an MoU with Tabuchi Electric (Japan) for setting up a one of its kind bi-directional DC hybrid inverter
13 pilots for home automation were completed and an in-house mobile application and API with interoperability feature
was developed
An MoU was signed with AES (Mitsubishi) and approval was received from regulatory commission to set up 10 MW
storage capacity which is a first of its kind in Asia etc.
TPDDL became the only DISCOM which has obtained the highest grading from ICRA for ESCO Services and has booked
load of 21.64 MW under external Energy Audits
5.8.
TATA POWER TRADING COMPANY LIMITED - TPTCL
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY17
14,583
4,606
5
(Table 12)
FY16
17,309
5,943
19
Revenue and PAT reduced mainly due to losses from Dagachhu power sales as complete access was not allowed for cross
border sales.
The company has agreed to revise the terms of PPA with Dagachhu Power, Bhutan to reflect the current regulatory and market
constraints in importing power from Bhutan. The company has been able to reduce the tariff from ` 3.02 per kWh to ` 2.60 per
kWh for a period of 1 year starting 1st March 2017.
5.9.
TRUST ENERGY RESOURCES PTE. LIMITED - TRUST ENERGY
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY17
482
190
(Table 13)
FY16
310
73
Sales and PAT increased with addition of a new ship to the fleet.
All the 3 owned ships under Trust Energy maintained an overall availability of close to 99% with no safety related incidents. A
new vessel (210,000 DWT) has been acquired and contracted to securitize the freight of CGPL for twenty years. The company
has also undertaken several measures to improve the operating efficiencies, reduce operating expenditure (OPEX) viz. reduction
in insurance premium and ensuring a lean structure to manage overhead costs.
5.10. COAL & INFRASTRUCTURE COMPANIES
Your Company, through its subsidiaries, holds a 30% stake in PT Kaltim Prima Coal (KPC) and a 26% stake in PT Baramulti
Suksessarana Tbk (BSSR), which are strategic assets to hedge imported coal price exposure at CGPL and form an important
part of the supply chain for its coal off-take requirements.
In FY14, your Company signed an agreement to sell its 30% stake in PT Arutmin Indonesia and associated companies in coal
trading and infrastructure. The aggregate consideration for Tata Power’s 30% stake is USD 510 million, subject to certain closing
adjustments and restructuring actions. However, the Conditions Precedent to closing the transaction could not be completed
in FY16 particularly due to poor outlook of coal prices and delay in getting consent of bankers and key stakeholders for
restructuring and splitting of the infrastructure company holding the combined asset of KPC and Arutmin. The buyer of the
shares is currently undergoing financial restructuring as a result of which, the consideration is taken to be received in a phased
manner. Your Company is pursuing steps to conclude this transaction. Consideration has reduced to USD 400.92 million in
FY17. Consequent to transition to IndAS, the Company has stopped consolidating the accounts of PT Arutmin Indonesia and
PT Mitratama Perkasa.
104 I Management Discussion & Analysis
The Tata Power Company Limited
PT Kaltim Prima Coal, Indonesia
Particulars
Net sales (` crore)
PAT (` crore)
FY17
6,521
465
The coal price realization for the year was USD 54.53/tonne as compared to USD 51.48/tonne in the previous year.
PT Baramulti Suksessarana Tbk. and PT Antang Gunung Meratus Indonesia
Net sales (` crore)
PAT (` crore)
Particulars
FY17
491
71
(Table 14)
FY16
5,797
11
(Table 15)
FY16
417
39
The production at the Indonesian thermal coal mining companies, viz. PT Kaltim Prima Coal and PT Baramulti Suksessarana
Tbk. and PT Antang Gunung Meratus Indonesia during FY17 was 66.81 MT as against 65.33 MT in PY16.
The status of infrastructure companies at Indonesia was as under:
PT Nusa Tambang Pratama, Indonesia
Particulars
Net sales (` crore)
PAT (` crore)
5.11. TATA POWER SOLAR SYSTEMS LIMITED - TPSSL
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY17
260
133
FY17
2,261
78
(Table 16)
FY16
149
77
(Table 17)
FY16
1,490
18
During the year, there was a significant improvement in TPSSL’s bottom line due to enhanced business volumes and efficient
operational performance leading to the company making a considerable amount of net profit in FY17, ending a 5-year period
of net losses. The company achieved an all-time high revenue of ` 2,261 crore.
Operations
•
•
Solar Photovoltaic (PV) Cells & Modules and Projects: TPSSL undertook expansion and modernization of its cell
and module manufacturing facilities. The two-stage expansion doubled the company’s module capacity to 400 MW
from 200 MW, and increased its cell manufacturing capacity by 65 per cent from 180 MW to 300 MW. During the year,
the company commissioned a total of 326 MW of utility scale projects, all on time, including 165 MW with in-house
manufactured modules. The company also won orders and commissioned projects for multiple blue-chip private
developers. At the end of the year, TPSSL had a cumulative unexecuted pipeline of 593 MW.
Solar Rooftop Projects: The year saw robust activity in the rooftop segment across all categories- residential, institutional
& commercial and industrial. During the year, the company booked over 50 MW of rooftop orders and installed India’s
largest carport solar project at Cochin International Airport. The company has cumulatively bagged projects over 1000
MW since inception.
5.12. CENNERGI PTY LIMITED - CENNERGI
Type of entity: Joint Venture [Tata Power (through Khopoli) 50%, Exxaro Resources Limited 50%]
(Table 18)
Revenue (` crore)
(Loss)/Profit (` crore)
Particulars
FY17
200
(55)
FY16
2
15
Cennergi is an independent power producer jointly owned by Tata Power (50%) and Exxaro Resources (50%). The company was
awarded with two projects in the South African governments’ Independent Power Producer Procurement Programme (IPPPP).
The 134 MW, Amakhala Emoyeni RE Project 01 (RF) (Pty) Ltd. project achieved COD in July 2016 with the 95 MW, Tsitsikamma
Community Wind Farm (RF) (Pty) Ltd. reaching COD in August 2016. The gain in FY16 is on account of interest rate swaps.
Two Community Trusts were established in Q1 of 2017 as a part of Cennergi group complying with the terms of the bid relating
to Economic and Socio-Economic Development obligations.
Management Discussion & Analysis I 105
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
While both projects are operating well and exceeding their contractual requirements, it is the accounting treatment between
South African GAAP and IndAS that brings non cash loss to the bottom line.
5.13. DAGACHHU HYDRO POWER CORPORATION LIMITED - DHPC
Type of entity: Associate (Tata Power 26%, DGPC & Affiliates: 74%)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT
FY17
449
31
13
(Table 19)
FY16
331
26
(7)
The profits have increased with increased volumes and exchange gains.
DHPC (126 MW) sold 448.59 MU energy at Indo Bhutan periphery during FY17 against designed energy of 502 MU. The shortage
was primarily due to failure of Generator Transformer bushing of Unit-1 in September 2016.
Considering the limited power market access and suppressed power market prices, Tata Power Trading Co. Ltd. requested
for negotiation of PPA in the interim period. After detailed discussion and exploring the possible alternatives, the Board
recommended the re-negotiation of PPA to the shareholders. On the approval of the shareholders, the Management of DHPC
renegotiated the PPA at a lower tariff for a period of 1 year starting from 1st March 2017 to 28th February 2018.
5.14.
ITEZHI TEZHI POWER CORPORATION LIMITED - ITPC
Type of entity: Joint Venture (Tata Power: 50%, ZESCO: 50%)
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY17
618
265
110
(Table 20)
FY16
60
-
32
ITPC has commenced commercial operations during the current year.
In 2007, the Government of the Republic of Zambia facilitated the incorporation of a Special Purpose Vehicle (SPV) called Itezhi
Tezhi Power Corporation Limited (ITPC), to implement the development of, and to operate, the Itezhi Tezhi Hydropower plant
with a capacity of 120 MW. The SPV is owned by Tata Power and ZESCO Limited in a 50:50 ratio.
The ITPC project has been developed in Itezhi Tezhi district approximately 350 kms. from the capital city of Lusaka. The project
is funded by African Development Bank (AfDB), Development Bank of South Africa (DBSA), Netherlands Development Finance
Company (FMO) and Proparco.
Construction of the power station started in 2012 and it achieved Commercial Operations in May 2016. ITPC posted positive
key financials with turnover of USD 79 million and a net profit of USD 33 million in its inaugural year of operations. The annual
availability of the power plant stood at 87.4% with total energy generation at the end of the year of 625.9 MUs at a Plant Load
Factor of 59.4%. Generation was constrained by low water levels in the reservoir during a part of the year.
The power station has recorded good safety performance since commissioning without any man hours lost due to accidents,
and costs have been managed within the investment parameters.
ITPC has begun to engage the local communities and civic leaders in and around Itezhi Tezhi district to identify Corporate Social
Responsibility (CSR) projects. The CSR projects to be carried out will be selected from the focus areas of Health, Education,
Water & Sanitation and Rural Electrification in rural areas.
5.15. ADJARISTSQALI GEORGIA LLC - AGL
Type of entity: Joint Venture [Tata Power (through TPIPL):40%, Clean Energy Invest: 40%, International Finance Corporation
(IFC): 20%]
AGL is developing a 187 MW hydropower project on the Adjaristsqali River and its tributaries in Georgia. This is one of the
largest infrastructure investments in Georgia. AGL is a joint venture between Clean Energy Invest AS (Norway), Tata Power
International Pte Ltd, and IFC, a member of the World Bank Group. The Project is funded by debt of USD 250 million at 60:40
debt to equity ratio by a consortium of lenders - IFC, European Bank for Reconstruction and Development (EBRD) and Asian
Development Bank (ADB).
The HPP has three tunnels aggregating to approx. 38 kms. of length. These tunnels were successfully completed in record time.
The Project expects to achieve commercial operation in the quarter ending June 2017. The Shuakhevi HPP aims to satisfy the
domestic electricity demand during winter, thus reducing Georgia’s dependence on imported fuel and increasing its renewable
106 I Management Discussion & Analysis
The Tata Power Company Limited
energy output. The plant will export excess electricity to Turkey. The Shuakhevi HPP will generate more than 450 million kWh
of clean electricity annually, decreasing the emission of greenhouse gases by more than 200,000 tons per year.
With an objective to ensure sustainable development in mountainous Adjara region, a comprehensive program of CSR projects
has been developed in association with local and international NGOs and IFC. With around 70 social responsibility projects
being implemented during the construction phase, the CSR strategy for operational phase has also been developed. AGL seeks
to improve the living standards of the local population and CSR would remain a focus area in the operations phase as well.
6.
PROJECTS COMMISSIONED DURING FY17
Domestic
Vehicle for project
execution
Scale
TPREL
159 MW
Acquisition by TPREL
1010 MW
Acquisition by TPREL
30 MW
International
Vehicle for project
execution
Cennergi Pty. Ltd.
Scale
230 MW
PT Citra Kusuma Perdana
36 MW
(Table 21)
Key Highlights
Projects commissioned by TPREL in FY17 were
44 MW wind farm at Rojmal (Gujarat)
•
100 MW wind farm at Nimbagallu (Andhra Pradesh)
•
•
15 MW solar plant at Belampalli (Telangana)
864 MW solar capacity and 146 MW wind capacity was added in FY17 through
the acquisition of WREPL during September 2016.
30 MW wind capacity through the acquisition of Indo Rama Renewables Jath
Ltd. in April 2016.
(Table 22)
Key Highlights
Both the projects have commenced Commercial Operation in Q2 FY17.
Coal fired power project in Sangatta, East Kalimantan province in Indonesia
for captive power consumption by PT Kaltim Prima Coal (KPC).
The first and second units out of the 3x18 MW configuration have been
synchronized in October 2016 and March 2017, respectively.
7.
PROJECTS UNDER EXECUTION
187 MW Hydro, Georgia
25 MW Solar, Gujarat
30 MW Solar, Maharashtra
150 MW Solar, Karnataka
67.5 MW Cogen, Odisha
100 MW Solar, Andhra Pradesh
21 MW Wind (Group
Captive), Tamil Nadu
18 MW Thermal, Indonesia
Management Discussion & Analysis I 107
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Domestic Projects under Execution:
(Table 23)
Vehicle for project execution
Scale
Key Highlights
TPREL
IEL
21 MW (Wind)
305 MW (Solar)
67.5 MW
TP Ajmer Distribution Limited
Area - 55 sq. kms.
MUs - 477 MUs
Consumers - 1.33 lakh
Existing AT&C losses - 17.9%
Project in Tamil Nadu.
Projects in Maharashtra, Karnataka, Andhra Pradesh and
Gujarat won through competitive bidding
Work is currently under progress for the third unit of 67.5
MW capacity.
Since it is a small area, the Company is confident of
arresting the losses in a more efficient way. The Special
Purpose Company (SPC) has already been formed and a
dedicated team deployed to commence takeover activities.
Distribution Franchisee Agreement has been signed with
Ajmer Vidyut Vitran Nigam Limited (AVVNL) on 21st April
2017.
International Projects under Execution:
(Table 24)
Vehicle for project execution
Adjaristsqali Georgia LLC
PT Citra Kusuma Perdana
Scale
187 MW
18 MW
Key Highlights
The construction work for the Project is in full swing.
Commercial Operation is expected by Q2 of FY 18
The third unit of the 3x18MW configuration is under
construction at Sangatta, East Kalimantan province in
Indonesia
8.
POTENTIAL GROWTH AREAS
The sector offers multiple growth opportunities for your Company in India and select international geographies, including M&A
opportunities. During the past year, the Company added projects in renewable energy based generation in India and overseas.
Your Company’s subsidiary, TPREL, dealing with renewable energy based generation, also acquired two companies adding
more than 1 GW of generation capacity to its generation portfolio. 230 MW of wind generation assets were also commissioned
by your Company’s JV Cennergi Pty. Ltd. in South Africa. Your Company also won the Distribution Franchisee license for the
city of Ajmer in Rajasthan.
Domestic
Depending upon growth of domestic demand and resolution of Discom issues leading to procurement of bulk power under
competitive bidding, your Company has a healthy pipeline of opportunities to bid from at various locations across India.
International
Your Company keeps evaluating international opportunities in the select geographies. In addition to South East Asia, your
Company has been also focusing on Sub-Saharan Africa, Turkey and Middle East.
9.
ENABLERS TO BUSINESS
9.1.
SUSTAINABILITY
Tata Power’s Sustainability vision is to practice ‘Leadership with Care’ by pursuing best practices on
Care for our Environment, Community, Customers, Shareholders, People and creating a culture that will
reinforce our values. The Company pursues a comprehensive Sustainability model in its journey towards
Sustainability which includes the key element of ‘Care’ (described in Board’s Report Section 12). The
Company’s latest Sustainability Report is hosted on its website: https://www.tatapower.com/sustainability/
sustainability-communications.aspx. (Alternately, scan the adjacent QR Code using a mobile device to read
the policy on the company website.)
9.1.1.
CARE FOR OUR PEOPLE
•
Safety: Safety has been adopted as a core value at your Company and is hence the first priority. Safety performance of
the Company has been reported in Board’s Report Section 11. Safety and 5S programs of Company have been given a
lot of thrust during the year. Training and awareness programs and safety drills were carried out across various locations
of the organisation.
108 I Management Discussion & Analysis
The Tata Power Company Limited •
•
•
Employee Engagement: The employee engagement score conducted for officers of your Company determined through
Aon Hewitt survey in FY17 was 74%. This is above the industry average of 68% and is a sector benchmark in India.
Industrial Relations: Your Company has, since its inception, supported working collaboratively with all stakeholders to
maintain a cordial industrial relationship at all locations. The activities at all locations progressed peacefully and cordially
during the year.
Sexual Harassment: The Company has zero tolerance for sexual harassment at the workplace and has adopted a policy
on prevention, prohibition and redressal of sexual harassment in line with the provisions of the Sexual Harassment of
Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the Rules thereunder for prevention and
redressal of complaints of sexual harassment at workplace. An Internal Complaints Committee (ICC) has been set up
for all administrative units or offices of Tata Power to redress complaints received regarding sexual harassment. The
policy has set guidelines on the redressal and enquiry process that is to be followed by complainants and the ICC whilst
dealing with issues related to sexual harassment at the work place towards any woman associates. All women associates
(permanent, temporary, contractual and trainees) as well as any woman visiting the Company’s office premises or
women service providers are covered under this policy.
The following is a summary of sexual harassment issues raised, attended and dispensed during FY17:
o
o
o
o
No. of complaints received: 1
No. of complaints disposed off: 1
No. of cases pending for more than 90 days: Nil
No. of workshops on awareness program against sexual harassment carried out: 8
9.1.2. CARE FOR COMMUNITY
The five thrust areas for Corporate Social Responsibility (CSR) wherein the Company engages with its community are:
•
•
•
•
•
Primary Education with focus on the girl child
Health and Drinking Water
Livelihood and Employability
Social Capital and Infrastructure
Inclusive Growth
Details of CSR spend by the Company is given in Annexure-I of the Board’s Report. CSR activities undertaken by the major
operating subsidiaries and joint ventures with significant spend are as follows:
A) Tata Power Delhi Distribution Limited
In FY17, TPDDL undertook the following CSR initiatives with the objective of enriching the lives of residents of underprivileged
communities:
•
•
•
•
•
350 training centers imparted functional literacy to 19,200 women.
44 RO plants were installed in schools, clusters, metro railway stations providing potable drinking water to nearly 1.9
lakh individuals.
Education support program for SC/ST students benefited 1,100 students from 46 government schools and 407 students
from ITI, polytechnic, engineering and graduation colleges.
18 vocational training centers trained 4,025 youths in the vocations of computer, beautician, electrician, tally, DTP and
tailoring etc.
62 drug de-addiction camps were organized which provided counseling and free homeopathy medicines to nearly
9,000 beneficiaries.
Notable awards received during the year by TPDDL were:
1.
2.
3.
Tata Volunteering Week award for highest volunteers’ participation and highest participation rate consecutively for
three years.
SKOCH Order Of Merit and Silver Award 2016 under Blue Economy for “Empowering Women Beyond Boundaries”.
ABP News CSR Leadership Awards for Women Empowerment 2016.
Management Discussion & Analysis I 109
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
B) Coastal Gujarat Power Limited
The CSR expenditures were made to respond to local demands for developmental activities with a view to establish CGPL as
the “neighbour of choice”.
Some of the major CSR activities pursued were:
•
•
•
•
•
•
Formation of village development and advisory committee, micro financing for boat fishermen, ground work for prawn
farming and crab fattening programs etc. initiated under Sagarbandhu program along with establishment of ‘Fishermen
Training Centre’.
CGPL supplied fodder for 3,600 cattle which benefited 450 cattle owners under Kanthi Area Livelihood program.
CGPL, in partnership with Gujarat Green Revolution Company (GGRC), launched a substantial micro irrigation programme
by providing financial support to farmers, 503 hectares have been covered benefiting 263 farmers.
A massive campaign was undertaken to educate cattle owners regarding spread of Brucellosis and also its impact on
the cattle population.
CGPL addressed the issue of “Quality Education” by promoting ‘Learning achievement’ in 132 schools in 50 villages
benefiting 13,501 students.
Sanitation (Swachh Block)- CGPL has worked in Mandvi block with an aim to ensure that all families have access to
sanitary toilets and the block is “open defecation free”.
The CAO-IFC had received a fresh complaint from the local fisher-community in February 2016, following which CAO undertook
field investigation in April 2016. CAO has put up their complaint review report on their website, in February 2017. The latest
summary of status of the 16 action points reflected in the Management and Monitoring (M&M) plan is available on CGPL micro
site. With regard to the CRP-ADB related issues, a categorical status update (as of end April 2017) on five action points is also
put on the CGPL micro site. CGPL has worked with reputed institutions (NIO, CMFRI, MGLI, Taleem, Kadam Enviro, ARCADIS,
GreenC etc.) to establish that the company operations have no adverse impact on the environment and marine life around the
plant, especially the inlet and outfall channel. Apart from ESP, ETP, and STP for emission and effluent control, the company has
undertaken extra initiatives to develop biodiversity management plans in the region. The company has also taken a leading
role in participatory groundwater management in the Kankavati aquifer, with a blend of demand management and supply
augmentation initiatives. Assurance activities in the form of experimental cage fishing in the outfall channel has also continued
which, after 19 rounds, has decisively established that there is no adverse impact on variety of fish culture.
The positive social impact of these initiatives is measured in terms of CSI (community satisfaction index), which has shown a
consistent increase over the years (2010-11: 24.6%; 2011-12: 26.2%; 2012-13: 61.81%; 2013-2015: 62.28%; 2015-16: 70%). This
is a composite index consisting of community reactions to multi-sector CSR initiatives undertaken by CGPL and is measured
through scientific means by Government accredited expert agency (MGLI - Mahatma Gandhi Labour Institute). On the other
hand, there are certain disgruntled elements and vested interests operating at local level. These groups have continued to make
false allegations of adverse impact on the marine environment and livelihood of society due to CGPL operations, in terms of
increasing temperatures of sea water, ingress of salinity, loss of livelihood and demanded related compensation. However, CGPL
has undertaken sufficient assurance studies and remedial actions in this regard. All CSR activities of CGPL are implemented
through community organizations (VDACs).While all efforts undertaken by CGPL are well documented, the allegations made
by complainants are unsubstantiated and not backed by credible data.
C) Maithon Power Limited
During the year under review, the following CSR activities were undertaken:
•
•
•
•
Agriculture and allied sectors were promoted in the area in partnership with BAIF, wherein a 5 years holistic development
plan to establish 300 Wadi, on 225 acres of land with irrigation facilities with an aim to integrate 1000 families in livestock
industry was initiated. As a part of the program, Wadi has been developed in 225 acres of land and ‘Breed Development
Centre’ for goats was established, benefiting 770 families.
More than 600 youths were provided with technical skills in power sector though Tata Power Skill Development Institute
(TPSDI) at MPL.
MPL initiated an education excellence program, in collaboration with TPTCL and developed digital classrooms in 32
schools in order to bridge their learning gap to help 6623 students.
311 local youth and students were provided with soft skill trainings, computer literacy and coaching for competitive
examinations.
110 I Management Discussion & Analysis
The Tata Power Company Limited
D) Powerlinks Transmission Limited
•
•
•
Powerlinks undertook project ‘Hausla’ to support and empower adolescent girls in the Maharajganj District of Uttar
Pradesh.
To ensure access to pure and safe drinking water, water purifiers have been installed in government schools reaching
out to over 50,000 students.
Powerlinks has been proactively involved in livelihood generation programs for the specially abled in association with
SARTHAK (NGO).
E) Industrial Energy Limited
•
•
•
•
•
•
•
30 girl students from indigenous tribal communities across 21 villages were provided educational and residential
facilities at Kalinga Institute of Social Sciences (KISS).
At Jojobera, learning camps were conducted in government schools across 20 villages, where 1054 students reaped
the benefits of the learning camps.
IEL worked with rural community and formulated Village Development Committees (VDC) in 20 villages and 20 SHGs
to provide them with sustainable livelihood options.
A community centre was set up in Arasahi village of Jajpur district which has helped in creating recreation and assembling
space for 260 individuals around the villages.
Well-equipped water, sanitation and hygiene (WASH) infrastructure was made available in schools and colleges across
3 villages, benefiting 800 girl students.
In Balipal village, a solar micro grid project was established which meets the power requirement of the villagers during
power cuts.
To electrify villages, solar street lights were installed by IEL in 15 villages of Jajpur district. This has benefited 2100
resident villagers.
F) Tata Power Trading Company Limited
TPTCL entered into a MoU with TPCDT to implement its community development initiatives at Maithon, Jharkhand. This involves
education excellence intervention in 34 schools catering to 3000 students and setting up solar RO water plant in Dombui village
near MPL. Skill development program was provided at Shakurpur, New Delhi covering 220 students. TPTCL put up a 5 KW solar
rooftop for an Old Age Home, Jan Kalyan Trust in Noida. Also, TPTCL supported Udyan Ghar (a foster home in Greater Noida)
with a seven seater vehicle for transportation of girls of the Udyan Ghar for their safety.
G) Tata Power Renewable Energy Limited
TPREL undertook CSR initiatives in the vicinity of the Palsawade solar plant. So far, watershed management activities, drinking
water initiatives, vocational trainings to rural youth, government at door step - good governance program, e-learning education
facility to rural students, solar street lights, solar pump for public well to provide drinking water, participatory rural appraisal
(PRA), campaigns on the Swachh Bharat Abhiyan, save the girl child, save the trees - save the earth and other initiatives have
been carried out with community participation.
H) Welspun Renewables Energy Pvt. Ltd.
Through social and community development interventions, WREPL has tried to address some of the community issues under
the following CSR focus areas:
•
•
•
•
Providing a conducive environment to students for learning in Government schools
Improving livelihood opportunity among women and youth
Providing access to potable drinking water, better health care and increasing green cover to improve the environment
Planting and maintaining saplings with the community participation
Specific initiatives under each of these focus areas are covered in detail below:
•
•
Infrastructure support to schools and Anganwadi touching 2187 students through drinking water access, toilet repair
or construction, building renovation, electrification and school compound wall.
Shiksha Karmi (Para teacher) Programme: This programme engaged 25 teachers in offering need based special coaching
in English, Maths and Science to slow learners numbering 3440 from 17 schools in Jodhpur, Pratapgarh and Karnataka
states.
Management Discussion & Analysis I 111
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
•
•
Nav Kiran Stitching Centre are run by WREPL in partnership with Usha International Limited with the aim of offering
skill training to women.
WREPL joined hands with veterinary departments in creating awareness and maximizing the participation and thus
increasing reach. These camps witnessed participation by 4919 cattle belonging to 1384 people in Madhya Pradesh,
Rajasthan and Tamil Nadu.
WREPL in partnership with the Nehru Yuva Kendra (NYK), Karur District has set up a ‘Youth Facilitation Centre’ with the aim of
promoting digital literacy in alignment with the Prime Minister’s vision of “Digital India”.
9.1.3. CARE FOR OUR ENVIRONMENT
The following key initiatives were completed in FY17:
•
•
•
•
Completed project for identification of Polychlorinated Biphenyls (PCB) in your Company
Completed natural capital valuation for hydro stations
Your Company bagged CII-ITC Sustainability Awards 2016 - commendation for Significant Achievement in Biodiversity.
Your Company’s Corporate Centre, Carnac office has been awarded IGBC Gold rating under ‘Green Existing buildings’
category.
9.1.4. CARE FOR OUR CUSTOMERS
Tata Power has different approaches for engaging with and receiving feedback from customers across generation, transmission,
distribution, trading and solar business streams. The approach depends upon the nature of business and customer needs in
each segment. The information or the feedback obtained through the above listening and learning (L&L) approaches is reviewed
during review meetings and improvements are initiated across the customer value chain. In addition to formal and informal
approaches in L&L mechanisms, surveys are conducted with different sets of questionnaires for different customer segments
across various lines of businesses, based on the differentiated needs of the customer groups, to determine their satisfaction,
dissatisfaction, loyalty and advocacy.
Tata Power’s alignment to Customer Promise and the various initiatives for delivering superior value and superior experience
to customers are listed below:
Customer Promise
1. Develop insights on customer needs
2. Deliver quality product & services
3. Delight customers with great experience
Customer Affection Statement- To earn affection of customers by delivering
superior value and superior experience thereby making them our ambassadors.
LOB
Superior Value
Superior Experience
Generation
1. Reliability - Islanding Schemes
& Redundancy in technology
2. Generation Mix - Conventional
& Non-Conventional
3. Multiple business model
1. One - on- One Relationship
Management
2. Access to SLT
3.
Joint teams for improvement
4. Good behaviour of personnel
Transmission
1. Grid Availability
2. Availability of Outlets
3. Power Quality
1. Real-time coordination
2. Good behavior of personnel
Distribution
1. High reliability (SAIDI, SAIFI)
supported by Ring Feed and
Connected Generation
2. Customized Solution to meet
t e c h n i c a l a n d a e s t h e t i c
requirements
3. Power Quality
4. VAS - DS M, Safety Audit, Energy
audit, OEM Training
1. Superior Experience at access
points -
a. Low wait time and call drop;
b. Resolution in first touch,
c. Good behavior of personnel
2. “e-Services - complete suite
of services on Mobile App &
desktop Webpage; launch of
Al-based chatbot Tina
112 I Management Discussion & Analysis
The Tata Power Company Limited
9.2.
FINANCING
Refinancing of debts
During the year the company had undertaken refinancing of some of the existing Rupee debt facilities leading to significant
savings in interest costs as well as easing cash flows. Some of the key refinancing transactions completed include the following:
•
•
•
•
Refinancing of ` 1200 crore in WREPL with Non-Convertible-Debentures (NCDs).
Replacement of ` 500 crore of Long term Borrowing in MPL with NCDs.
Issuance of ` 575 crore of NCDs in TPREL to refinance existing debt.
Issuance of ` 104 crore of NCDs in PTL to refinance existing debt.
Borrowings
Outstanding borrowings of the Company as on 31st March 2017 are as follows:
(Table 25)
Long Term Borrowings
Short Term Borrowings
Current maturing of LTB
Total
Particulars
Particulars
Rupee Borrowings
Foreign Currency Borrowings
Total
Debt repayment
Standalone (` crore)
8,848
2,392
5,264
16,504
Consolidated (` crore)
25,143
16,280
7,393
48,816
(Table 26)
Standalone (` crore)
15,709
795
16,504
Consolidated (` crore)
32,252
16,564
48,816
During the year, an amount of ` 5,943 crore was repaid on existing loans and debentures by the group.
Details of terms of repayment of each loan are set out in the Notes forming part of the Financial Statements [Standalone – Note
21; Consolidated – Note 21]
Repayment Schedule (Standalone)
Figures in ` crore (Table 27)
Bonds
Term Loan
FY18
4,927
337
FY19
1,041
1,209
Leverage as on 31st March 2017:
Standalone
Particulars
Debt/Equity, Standalone
EBITDA/Net Debt, Standalone
Consolidated
Debt/Equity, Consolidated, without Minority Interest
Debt/Equity, Consolidated, including Minority Interest
Particulars
Credit Rating
FY20
FY21
FY22
FY23 & Beyond
541
721
41
315
36
309
FY17
1.00
0.19
FY17
3.68
3.22
2,364
2,284
(Table 28)
FY16
0.67
0.31
(Table 29)
FY16
2.96
2.61
As on 19th May 2017, your Company had the following five credit ratings. The ratings have been assigned on the basis of
consolidated credit profile of Tata Power and its subsidiaries:
•
•
Standard & Poor’s Rating Services: B+ with Stable Outlook
Moody’s Investor Services: Ba3 With Negative Outlook
Management Discussion & Analysis I 113
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
•
•
•
•
CRISIL: AA- with Stable Outlook
CARE: AA
ICRA: AA with Negative Outlook
India Rating: IND AA with Stable Outlook
Hedging - Currency and Interest Rate Risk
Your Company is exposed to risk from market fluctuations of foreign currency on account of coal import, foreign currency
loan, project imports etc. and exposures are primarily in the Tata Power Standalone and CGPL. The Company has been actively
managing its short-term and long-term foreign exchange risks within the framework laid down by the Company which includes
a Risk Management Policy. The Company has set up a Forex Risk Management Committee, which reviews exposures on monthly
basis and decides suitable hedging strategies. The Company has been hedging its exposure by way of various hedge instruments
such as Forwards, Options or combination of both. The Tata Power group has approx. USD 2 billion of currency exposures, out
of which nearly three-fourths is hedged. Besides currency, the Company has also exposures on the interest rate i.e. USD LIBOR
as it has borrowed in the foreign currency. The interest rate risk is also managed through suitable hedging strategies. With
the adoption of the IndAS, all the derivative instruments are marked to market and any gains or losses are passed on through
profit & loss account.
Cash flows from operating activities
Cash generated from operations of your Company, post adjustments to profit before tax, has reduced from ` 2,947.25 crore in
FY16 to ` 2,106.04 crore in FY17. This is primarily due to lower operating profits and increased working capital. On a consolidated
level, net cash flow from operating activities decreased from ` 7,426.01 crore to ` 6,957.68 crore.
9.3.
BUSINESS EXCELLENCE
•
•
Improvements - Your Company continued its cost saving activities under the cost saving initiatives under Business
Excellence. The cost saving initiatives saved an amount of nearly ` 161 crore during the year. The major programs under
these initiatives were as under:
o
o
o
Sankalp - This is a program to bring in operational excellence, delivery excellence and cost efficiency using
the Total Operational Performance methodology. During the year, 17 projects were completed and 68 officers
participated in these projects.
Structured Problem Solving (SPS) - SPS attempts to analyse data available from various processes, using quality
tools, to arrive at solutions for continuous improvements.
Six Sigma - This methodology has been recently introduced in your Company across 28 projects. Trainings of
employees have been conducted and we have 12 Black Belts, 175 Yellow Belts and 19 Green Belts.
Culture Building – Your Company continued its efforts in culture building through the various initiatives, which include
Leher (an organizational transformation program for officers), LASER (an organizational transformation program for
shop floor employees), We Care (umbrella program for strengthening organizational values embedment), Spandan
(organizational transformation and safety programs for shop floor employees), Workers Development Program
(organizational transformation for contract employees), Gender Diversity and Inclusivity programs.
9.4.
INFORMATION AND COMMUNICATION TECHNOLOGY
Your Company’s journey on sustenance and maturity of SAP solution continues into the second year after SAP re-implementation
and is spreading the landscape across Tata Power and its subsidiaries. This year, Tata Power Solar was added to the current
SAP instance. Strengthening of the work flow and repository processes through the Enterprise Content Management tool,
Documentum has been an ongoing process.
As part of Digitalization wave-2, Digital Thinking programme was launched including enterprise-wide initiatives around the
pivots of Customer, Asset, Partner/Vendor and Employee. Building upon your Company’s mobility journey, Tata Power mobile
app was launched as a consolidated platform for solutions catering to all stakeholders including customer & employee, including
billing, safety and a few employee self-services, with links to all subsidiary portals. A web and mobile-based enterprise social
media tool, “Xpressions”, was launched for higher employee engagement, and is being progressively strengthened.
To understand and mitigate the impact of Cybersecurity risks, a pilot project was carried out in one of the key generating
stations and the learnings thereof will be taken to other G-T-D establishments in a phased manner. A cross functional team
across organisational functions has been setup to drive the Cybersecurity initiatives.
114 I Management Discussion & Analysis
The Tata Power Company Limited
•
Digitalization of business processes and customer integration has been achieved through:
o
o
o
o
o
o
o
Launch of Tata Power mobile application on android as well as on iOS platforms; the application has won the
SAP ACE Award 2016
Push-pull SMS in order to resolve various consumer queries
Introduction of low cost solution for spot billing and spot collection for consumers
Launch of online application facility on Tata Power’s web portal for new power supply connection, open access
reconnection and roof top solar connection
Availability of outage information (planned outage) on GIS map view on customer portal and for Customer
Relation Executives through GIS plugin with CRM
Availability of more payment options for consumers through integration with mobile wallets
Automated response to consumer queries using artificial intelligence through Chatbots
9.5.
PARAM SANKALP
Your Company has launched Param Sankalp, an organisation wide Reliability Centred Maintenance (RCM) program in October
2016 which would run over a time period of 30 months. The Company would develop best in-class Operations and Maintenance
processes (O&M) and standardize best practices across Generation, Transmission and Distribution assets. The program will
target to improve the system reliability and efficiency while reducing the Operation and Maintenance cost.
Further, Param Sankalp would ingrain a culture of O&M excellence and pride in the team while developing employee capability.
Comprehensive diagnostic assessment and benchmarking of all the assets across O&M elements has been completed and
opportunity areas have been identified. The project is currently in Design phase for developing the foundational elements.
Post implementation, the program will see the full scale roll-out of the RCM Academy that will help sustain the improvements
and continue to empower our O&M personnel to drive long term excellence.
9.6.
NEW BUSINESS AVENUES
Your Company is actively pursuing opportunities in emerging business areas such as Decentralized Distributed Generation
(DDG), utility-scale storage solutions and battery charging solutions for electric vehicles.
10. FINANCIAL PERFORMANCE – STANDALONE
Your Company recorded a PAT of ` 283 crore during the financial year ended 31st March 2017 (FY16: ` 1,355 crore). Both the
basic and the diluted earnings per share were at ` 0.63 for FY17.
The analysis of major items of the Standalone financial statements is shown below: (Section 10.1 to 10.11: Statement of Profit
and Loss; Section 10.12 to 10.25: Balance Sheet Items).
10.1. REVENUE
Particulars
Revenue from Power Supply and
Transmission Charges*
Revenue from Contracts
Project/Operation Management
Services
Other Operating Revenue
Total
* Includes rate regulatory income/(expense)
FY17
5,480.85
541.63
1,040.38
219.20
7,282.06
FY16
6,380.36
549.88
1,154.08
231.21
8,315.53
Figures in ` crore (Table 31)
Change
(899.51)
(8.25)
(113.70)
(12.01)
(1,033.47)
% Change
-14%
-2%
-10%
-5%
-12%
The decrease in Revenue was mainly due to lower fuel cost and power purchase cost being pass through.
10.2. OTHER INCOME
Particulars
Dividend Income
Interest Income
Others
Total
FY17
649.98
269.42
(5.57)
913.83
FY16
328.06
552.28
24.93
905.27
Figures in ` crore (Table 32)
Change
321.92
(282.86)
(30.50)
8.56
% Change
98%
-51%
-122%
1%
Management Discussion & Analysis I 115
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Increase in Other Income was due to increased dividend income from subsidiaries offset by lower interest income on loans
given to subsidiary companies and increased foreign exchange losses.
10.3. COST OF POWER PURCHASED AND COST OF FUEL
Particulars
Cost of Power Purchased
Cost of Fuel
FY17
466.52
2,342.83
FY16
785.06
2,550.42
Figures in ` crore (Table 33)
Change
(318.54)
(207.59)
% Change
-41%
-8%
The power purchase cost reduced mainly due to lower per unit cost and cost of fuel is lower mainly due to lower volumes.
10.4. COST OF COMPONENT CONSUMED
Figures in ` crore (Table 34)
Particulars
Cost of components consumed
FY17
349.98
FY16
397.66
Change
(47.68)
% Change
-12%
Cost of components consumed was lower mainly due to reduced business at Tata Power SED.
10.5. TRANSMISSION CHARGES
Particulars
Transmission Charges
FY17
221.30
FY16
262.96
Change
(41.66)
% Change
-16%
Transmission charges in Mumbai regulated business were based on the MYT order.
Figures in ` crore (Table 35)
10.6. EMPLOYEE BENEFITS EXPENSES
Particulars
Employee benefits expense
FY17
660.80
FY16
648.47
Employee Benefit Expense increased due to annual increments.
10.7. FINANCE COST
Particulars
Finance Costs
FY17
1,295.68
FY16
1,146.12
Figures in ` crore (Table 36)
Change
12.33
% Change
2%
Figures in ` crore (Table 37)
Change
149.56
% Change
13%
Finance Cost was higher mainly due to funding needs of subsidiaries and working capital requirements offset by reduction
in interest rates during the current year.
10.8. DEPRECIATION AND AMORTIZATION
Particulars
Depreciation and amortization
FY17
634.21
FY16
604.46
Depreciation increased during the year due to higher capitalization.
10.9. OPERATIONS AND OTHER EXPENSES
Particulars
Repairs and Maintenance
Others
Total Operation and Other Expenses
FY17
295.14
771.85
1,066.99
FY16
305.28
786.08
1,091.36
Figures in ` crore (Table 38)
Change
29.75
% Change
5%
Figures in ` crore (Table 39)
Change
(10.14)
(14.23)
(24.37)
% Change
-3%
-2%
-2%
Operation and Other Expenses reduced since the Company had provided in the previous year for loans granted to Mandakini
coal mines. This was partly offset by reduction in the value of non-current assets held for sale and the stores inventory.
10.10. EXCEPTIONAL ITEM
Particulars
Exceptional Item
FY17
651.45
FY16
Nil
Figures in ` crore (Table 40)
Change
651.45
% Change
-
During FY17, the Company has provided for loss towards contractual obligation towards purchase of shares in TTSL from Docomo.
116 I Management Discussion & Analysis
The Tata Power Company Limited
10.11. TAX EXPENSES
Particulars
Current Tax
Deferred Tax
Total Tax Expense
FY17
290.92
(68.24)
222.68
FY16
279.20
100.10
379.30
Figures in ` crore (Table 41)
Change
11.72
(168.34)
(156.62)
% Change
4%
-168%
-41%
Tax Expenses reduced due to reversal of deferred tax liabilities in respect of the Company’s units falling under tax holiday period.
10.12. PROPERTY, PLANT AND EQUIPMENT & INTANGIBLE ASSETS
Particulars
Property, plant and equipment
Intangible Assets
Capital Work-in-Progress
Intangible assets under development
Total
FY17
8,130.21
189.87
666.18
254.68
9,240.94
FY16
8,251.53
140.54
485.72
209.70
9,087.49
Figures in ` crore (Table 42)
Change
(121.32)
49.33
180.46
44.98
153.45
% Change
-1%
35%
37%
21%
2%
Increase in Property, plant and equipment (gross) and Intangible assets was due to the higher capitalization in the Mumbai
License Area Generation, Transmission and Distribution businesses.
10.13. NON-CURRENT INVESTMENTS
Particulars
Investment in Subsidiaries, Joint
ventures and Associates
Statutory Investments
Others
Total
FY17
21,274.55
296.84
797.88
22,369.27
FY16
12,548.29
375.92
1,107.50
14,031.71
Figures in ` crore (Table 43)
Change
8,726.26
(79.08)
(309.62)
8,337.56
% Change
70%
-21%
-28%
59%
Increase in Non-Current Investments was mainly due to investment in Perpetual Securities of CGPL and TPREL.
10.14. CURRENT INVESTMENTS
Particulars
Statutory Investments
FY17
89.34
FY16
0.22
Change
89.12
% Change
40509%
Current Investments consisting of statutory investments increased due to increase in amount falling due within next one year.
Figures in ` crore (Table 44)
10.15. TRADE RECEIVABLES
Particulars
Non-current
Current
Total
FY17
185.76
1,234.26
1,420.02
FY16
185.76
1,057.23
1,242.99
Figures in ` crore (Table 45)
Change
Nil
(177.03)
(177.03)
% Change
-
-17%
-14%
Increase in Trade Receivables was mainly due to increase in receivables in SED’s business.
10.16. LOANS
Particulars
Non-current
Current
Total
FY17
22.82
Nil
22.82
FY16
3,644.45
106.00
3,750.45
Figures in ` crore (Table 46)
Change
(3,621.63)
(106.00)
(3,727.63)
% Change
-99%
-100%
-99%
Decrease in loans was mainly due to conversion of loans given to CGPL into Perpetual Securities.
Management Discussion & Analysis I 117
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 10.17. FINANCE LEASE RECEIVABLE
Particulars
Non-current
Current
Total
FY17
573.47
39.16
612.63
FY16
617.63
48.80
666.43
Finance Lease Receivable reduced due to recovery of lease rentals during the year.
10.18. OTHER FINANCIAL ASSETS
Particulars
Non-current
Current
Total
FY17
820.10
376.71
1,196.81
FY16
1,006.26
212.06
1,218.32
Figures in ` crore (Table 46)
Change
(44.16)
(9.64)
(53.80)
% Change
-7%
-20%
-8%
Figures in ` crore (Table 47)
Change
(186.16)
164.65
(21.51)
% Change
-19%
78%
-2%
Other Financial Assets reduced mainly due to liquidation of interest on loans given to related parties partly offset by Advance
paid for obligation to purchase shares in TTSL from Docomo.
10.19. OTHER ASSETS
Particulars
Non-current
Current
Total
FY17
1,105.15
273.83
1,378.98
FY16
1,143.96
345.06
1,489.02
Figures in ` crore (Table 48)
Change
(38.81)
(71.23)
(110.04)
% Change
-3%
-21%
-7%
Other Assets reduced mainly due to reduction in vendor advances and amortization of premium paid for leasehold land.
10.20 ASSETS CLASSIFIED AS HELD FOR SALE
Particulars
Freehold Land
Property, Plant and Equipment
Investments carried at Fair Value
through Other Comprehensive Income
Total
FY17
15.83
24.68
195.21
235.72
FY16
-
-
-
-
Figures in ` crore (Table 49)
Change
15.83
24.68
195.21
235.72
% Change
-
-
-
-
The Company has discontinued power generation at Belgaum (Karnataka), Vadaval (Maharashtra) and Unit 4 at Trombay,
Maharashtra and is in the process of disposing of the related assets. Further, the Company is also in the process of liquidating
some of its investments carried at Fair Value through Other Comprehensive Income and land at Tiruldih (Jharkand).
10.21. NON-CURRENT BORROWINGS
Particulars
Secured Loans
Unsecured Loans
Total
FY17
5,727.18
3,120.68
8,847.86
FY16
5,062.08
3,921.54
8,983.62
Figures in ` crore (Table 50)
Change
665.10
(800.86)
(135.76)
% Change
13%
-20%
-2%
Non-current borrowings reduced marginally with a series of Debentures falling due within the next one year getting reclassified
as Other Current Financial Liabilities partly offset by fresh borrowings from banks during the year.
10.22. CURRENT BORROWINGS
Particulars
Secured Loans
Unsecured Loans
Total
FY17
Nil
2,391.98
2,391.98
FY16
Nil
1,507.09
1,507.09
Figures in ` crore (Table 51)
Change
Nil
884.89
884.89
% Change
Nil
59%
59%
During the year, Current Borrowings increased with further issue of Commercial Papers.
118 I Management Discussion & Analysis
The Tata Power Company Limited
10.23. TRADE PAYABLES
Particulars
Non-current
Current
Total
FY17
35.57
1,344.68
1,380.25
Trade payables marginally increased during the year.
10.24. OTHER FINANCIAL LIABILITIES
Particulars
Non-current
Current
Total
FY17
31.98
6,632.32
6,664.30
FY16
33.12
1,263.26
1,296.38
FY16
33.59
1,866.79
1,900.38
Figures in ` crore (Table 52)
Change
2.45
81.42
83.87
% Change
7%
6%
6%
Figures in ` crore (Table 53)
Change
(1.61)
4,765.53
4,763.92
% Change
-5%
255%
251%
Other Financial Liabilities increased during the year mainly due to a part of the Non-current Borrowings falling due within the
next one year getting reclassified as current maturity of Non-current Borrowings.
10.25. OTHER LIABILITIES
Particulars
Non-current
Current
Total
FY17
187.34
1,479.53
1,666.87
FY16
176.85
1,420.62
1,597.47
Figures in ` crore (Table 54)
Change
10.49
58.91
69.40
% Change
6%
4%
4%
Other Liabilities increased mainly due to increase in advances received from customers and increase in Statutory Consumer Reserves.
10.26. TOTAL EQUITY
Particulars
Equity Share Capital
Unsecured Perpetual Securities
Other Equity
Total Equity
FY17
270.50
1,500.00
14,778.06
16,548.56
FY16
270.48
1,500.00
15,079.98
16,850.46
Figures in ` crore (Table 55)
Change
0.02
Nil
(301.92)
(301.90)
% Change
-
-
-2%
-2%
Total Equity of the Company reduced by 2% during the year on account of lower profits coupled with various appropriations.
10.27. REGULATORY DEFERRAL ACCOUNT - ASSET/(LIABILITY)
Particulars
Regulatory Deferral - Asset
Less: Regulatory Deferral - Liability
Total Equity
FY17
1,914.00
656.00
1,258.00
FY16
2,093.09
680.38
1,412.71
Figures in ` crore (Table 56)
Change
(179.09)
(24.38)
(154.71)
% Change
-9%
-4%
-11%
Regulatory Deferral Asset (Net) pertain to regulatory receivables in Distribution business. The same have reduced in line with
the recoveries in terms of regulatory orders.
11. FINANCIAL PERFORMANCE – CONSOLIDATED
Particulars
Total Income*
Depreciation/Amortization Impairment
Finance Costs
Exceptional Item
Profit Before Taxes
Profit/(Loss) After Taxes, Share of Associates,
Non-controlling interest
* Includes Regulatory Income/(Expenses)
FY17
27,490.48
1,988.59
3,113.97
(651.45)
(314.55)
745.48
FY16
28,616.99
1,648.73
3,235.81
(97.84)
1,280.71
662.20
Figures in ` crore (Table 57)
Change
(1,126.51)
339.86
(121.84)
(553.61)
(1,595.26)
83.28
% Change
-4%
21%
-4%
565%
-125%
13%
Management Discussion & Analysis I 119
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Reduction in Total Income was primarily on account of lower revenue from Tata Power Standalone, TPDDL and TPTCL partly
offset by increased revenue from TPSSL, CGPL and TPREL. Depreciation increased with increased capitalization. Finance costs
were lower mainly due to lower interest rates. Exceptional item in FY17 consisted of the loss towards contractual obligation
for purchase of shares in TTSL from Docomo. Exceptional item in FY16 consisted of impairment of goodwill arising from the
Group’s investment in coal companies offset by reversal of provision for impairment accounted by CGPL in earlier years.
11.1. PROPERTY, PLANT AND EQUIPMENT & INTANGIBLE ASSETS
Particulars
Property, plant and equipment
Intangible Assets
Capital Work-in-Progress
Intangible assets under
development
Total
FY17
43,012.62
1,705.80
1,923.24
254.68
FY16
36,100.84
307.34
1,134.16
210.75
Figures in ` crore (Table 58)
Change
6,911.78
1,398.46
789.08
43.93
% Change
19%
455%
70%
21%
46,896.34
37,753.09
9,143.25
24%
Property, plant and equipment increased mainly due to acquisition of WREPL during the year.
11.2. GOODWILL
Figures in ` crore (Table 59)
Particulars
Goodwill
FY17
1,732.48
FY16
5.54
Change
1,726.94
% Change
31,172%
Goodwill increased mainly due to acquisition of WREPL during the year.
11.3. NON-CURRENT INVESTMENTS
Particulars
Investment in Associates and Joint
ventures
Statutory Investments
Others
Impairment in value of Investments
Total
FY17
12,485.82
296.84
982.30
(2,905.73)
10,859.23
FY16
12,726.55
375.92
1,382.51
(3,038.15)
11,446.83
Figures in ` crore (Table 60)
Change
(240.73)
(79.08)
(400.21)
(132.42)
(587.60)
% Change
-2%
-21%
-29%
-4%
-5%
The decrease in Non-Current Investments was due to some of the investments getting reclassified as Assets held for sale offset
by increase in Investment in Associates and Joint Ventures by way of booking profit for the year net of dividend received.
11.4. CURRENT INVESTMENTS
Particulars
Statutory Investments
Mutual Fund
Other Investments
Total
FY17
89.34
975.78
32.66
1,097.78
FY16
0.19
311.38
24.35
335.92
Figures in ` crore (Table 61)
Change
89.15
664.40
8.31
761.86
% Change
46921%
213%
34%
227%
Increase in Current Investments was mainly on account of increase in mutual fund investments.
11.5. TRADE RECEIVABLES
Particulars
Non-current
Current
Total
FY17
187.92
3,832.12
4,020.04
FY16
190.00
3,540.24
3,730.24
Figures in ` crore (Table 62)
Change
(2.08)
291.88
289.80
% Change
-1%
8%
8%
Increase in Trade Receivables was mainly due to increase in receivables in Tata Power, WREPL and TPSSL partly offset by reduction
in CGPL, TPTCL and MPL.
120 I Management Discussion & Analysis
The Tata Power Company Limited 11.6. LOANS
Particulars
Long Term
Short Term
Total
FY17
77.16
655.44
732.60
FY16
390.37
410.27
800.64
Figures in ` crore (Table 63)
Change
(313.21)
245.17
(68.04)
% Change
-80%
60%
-8%
Loans reduced mainly due to liquidation of loans given to related parties in foreign subsidiaries.
11.7. FINANCE LEASE RECEIVABLE
Particulars
Long Term
Short Term
Total
FY17
573.47
39.16
612.63
FY16
617.63
48.80
666.43
Finance Lease Receivable reduced due to recovery of lease rentals during the year.
11.8. OTHER FINANCIAL ASSETS
Particulars
Non-current
Current
Total
FY17
872.68
913.40
1,786.08
FY16
667.41
511.49
1,178.90
Figures in ` crore (Table 64)
Change
(44.16)
(9.64)
(53.80)
% Change
-7%
-20%
-8%
Figures in ` crore (Table 65)
Change
205.27
401.91
607.18
% Change
31%
79%
52%
Other Financial Assets increased mainly due to increase in regulatory assets and advance paid for obligation to purchase shares
in TTSL from Docomo.
11.9. OTHER ASSETS
Particulars
Non-current
Current
Total
FY17
1,507.55
582.97
2,090.52
FY16
1,753.97
933.02
2,686.99
Figures in ` crore (Table 66)
Change
(246.42)
(350.05)
(596.47)
% Change
-14%
-38%
-22%
Other Assets reduced mainly due to reduction in Capital Advances and reduction in Power Banking assets in TPDDL.
11.10. NON-CURRENT BORROWINGS
Particulars
Secured Loans
Unsecured Loans
Total
FY17
14,106.14
11,036.82
25,142.96
FY16
11,057.42
11,356.46
22,413.88
Non-current Borrowings increased mainly due to acquisition of WREPL.
11.11. CURRENT BORROWINGS
Particulars
Secured Loans
Unsecured Loans
Total
FY17
6,568.59
9,711.20
16,279.79
FY16
6,237.12
8,351.79
14,588.91
Figures in ` crore (Table 67)
Change
3,048.72
(319.64)
2,729.08
% Change
28%
-3%
12%
Figures in ` crore (Table 68)
Change
331.47
1,359.41
1,690.88
% Change
5%
16%
12%
Current Borrowings increased mainly due to increase in Commercial Paper issued by Tata Power Standalone.
Management Discussion & Analysis I 121
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 11.12. TRADE PAYABLES
Particulars
Non-current
Current
Total
FY17
35.57
5,529.00
5,564.57
FY16
33.12
4,401.36
4,434.48
Figures in ` crore (Table 69)
Change
2.45
1,127.64
1,130.09
% Change
7%
26%
25%
Trade Payable increased mainly in Tata Power Standalone, TPDDL, WREPL offset by reduction in TPTCL.
11.13. OTHER FINANCIAL LIABILITIES
Particulars
Non-current
Current
Total
FY17
542.89
11,456.68
11,999.57
FY16
571.57
5,055.98
5,627.55
Figures in ` crore (Table 70)
Change
(28.68)
6,400.70
6,372.02
% Change
-5%
127%
113%
Other Financial Liabilities increased during the year mainly due to a part of the Non-current Borrowings falling due within the
next one year getting reclassified as current maturity of Non-current Borrowings mainly in Tata Power Standalone and WREPL.
11.14. OTHER LIABILITIES
Particulars
Non-current
Current
Total
FY17
3,086.70
1,976.32
5,063.02
FY16
3,042.88
1,711.72
4,754.60
Figures in ` crore (Table 71)
Change
43.82
264.60
308.42
% Change
1%
15%
6%
Other Liabilities increased mainly due to increase in advances received from customers and increase in Statutory Consumer
Reserves.
11.15. TOTAL EQUITY
Particulars
Equity Share Capital
Unsecured Perpetual Securities
Other Equity
Total Equity
FY17
270.50
1,500.00
11,508.97
13,279.47
FY16
270.48
1,500.00
11,362.90
13,133.38
Figures in ` crore (Table 72)
Change
0.02
Nil
146.07
146.09
% Change
-
-
1%
1%
Total Equity of the Company increased marginally by 1% during the year on account of profits earned offset by various
appropriations.
12.
INTERNAL FINANCIAL CONTROLS AND RISK MANAGEMENT
Your Company has established a strong and effective internal financial control mechanism and risk management framework.
The details of the same are provided in this Annual Report in point number 11 of the Board’s Report.
CAUTIONARY STATEMENT
Statements in the Management Discussion and Analysis, describing the Company’s objectives, projections and estimates may
be forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may vary from
those expressed or implied, depending upon economic conditions, Government policies and other incidental/related factors.
122 I Management Discussion & Analysis
The Tata Power Company Limited REPORT ON CORPORATE
GOVERNANCE
Windfarm, Cennergi, South Africa
REPORT ON CORPORATE GOVERNANCE
Company’s Philosophy on Corporate Governance
The essence of Corporate Governance is about maintaining the right balance between economic, social, individual and community goals.
At Tata Power, good corporate governance is a way of life and the way we do our business, encompassing every day’s activities and is
enshrined as a part of our way of working. The Company is focused on enhancement of long-term value creation for all stakeholders
without compromising on integrity, societal obligations, environment and regulatory compliances. Our actions are governed by our
values and principles, which are reinforced at all levels of the organisation. These principles have been and will continue to be our
guiding force in future.
For your Company, good corporate governance is a synonym for sound management, transparency and disclosure, encompassing
good corporate practices, procedures, standards and implicit rules which propel a Company to take sound decisions, thus maximising
long-term shareholder value without compromising on integrity, social obligations and regulatory compliances. As a Company with
a strong sense of values and commitment, Tata Power believes that profitability must go hand in hand with a sense of responsibility
towards all stakeholders. This is an integral part of Tata Power’s business philosophy. The cardinal principles such as independence,
accountability, responsibility, transparency, trusteeship and disclosure serve as means for implementing the philosophy of Corporate
Governance.
This philosophy is reflected and practised through the Tata Code of Conduct (TCOC), the Tata Business Excellence Model and the Tata
Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosure Practices, which form guidelines for “Leadership
with Trust”. The Company is committed to focus its energies and resources in creating and positively leveraging shareholders’ wealth
and, at the same time, safeguarding the interests of all stakeholders. This is our path to sustainable and profitable existence and growth.
Governance Guidelines
The Company has adopted Governance Guidelines to help fulfil its corporate responsibility towards its stakeholders. The Governance
Guidelines cover aspects related to composition and role of the Board, Chairman and Directors, Board diversity, definition of independence,
Director’s term, retirement age and Committees of the Board. It also covers aspects relating to nomination, appointment, induction and
development of Directors, Directors’ remuneration, subsidiary oversight, Code of Conduct, Board effectiveness review and mandates
of Board Committees. These guidelines ensure that the Board will have the necessary authority and processes to review and evaluate
our operations, when required. Further, these Guidelines allow the Board to make decisions that are independent of the management.
The Company has adopted the requirements of Corporate Governance as specified under the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), the disclosure requirements of which are
detailed hereunder.
Board of Directors
Size and composition of the Board
As on 19th May 2017, the Company’s Board of Directors comprises 12 members, 2 of whom are Executive Directors, and 10 are Non-
Executive Directors (NEDs). Out of these 10 NEDs, 6 are Independent Directors. The Board’s composition is in compliance with the
requirements of Regulation 17 of the Listing Regulations.
These Directors bring in a wide range of skills and experience to the Board. The Board provides leadership, strategic guidance, objective
and an independent view to the Company’s management while discharging its fiduciary responsibilities, thereby ensuring that the
management adheres to high standards of ethics, transparency and disclosure.
The Board periodically evaluates the need for change in its composition and size.
The names and categories of the Directors on the Board, the number of directorships and committee positions held by them in other
companies as on 31st March 2017:
Table 1
Sl.
No.
Name of the Director
and Business Relationship
Category of
Directorship
No. of other
Directorships(1)
No. of Committee positions held(2)
Chairman
Member
1. Mr. N. Chandrasekaran, Chairman
2. Mr. S. Padmanabhan
3. Mr. Pravin H. Kutumbe (LIC Nominee)
4. Ms. Sandhya S. Kudtarkar
Non-Independent,
Non-Executive
5
5
2
6
Nil
Nil
Nil
Nil
Nil
3
1
2
124 I Report on Corporate Governance
The Tata Power Company Limited Sl.
No.
Name of the Director
and Business Relationship
Category of
Directorship
No. of other
Directorships(1)
No. of Committee positions held(2)
Chairman
Member
5. Dr. Homiar S. Vachha
6. Mr. Nawshir H. Mirza
7. Mr. Deepak M. Satwalekar
8. Ms. Anjali Bansal
9. Ms. Vibha Padalkar
10. Mr. Sanjay V. Bhandarkar
11. Mr. Anil Sardana, CEO & Managing Director
12. Mr. Ashok S. Sethi, COO & Executive Director
Independent,
Non-Executive
Executive
7
5
2
3
3
1
5
3
3
4
1
Nil
1
Nil
Nil
Nil
4
1
Nil
1
Nil
Nil
Nil
Nil
Notes:
•
•
•
•
•
•
•
•
•
There are no inter-se relationships between our Board members.
(1)Excludes directorship in Tata Power, alternate directorships and directorships in private companies, foreign companies and
companies under Section 8 of the Companies Act, 2013 (the Act).
(2)Includes memberships/chairmanships of the Audit Committee of Directors and Stakeholders Relationship Committee of
Indian public companies (excluding Tata Power).
None of the Directors were members of more than 10 committees or acted as chairperson of more than 5 committees (as
specified in the Listing Regulations), across all the companies in which he/she was a Director. The necessary disclosures regarding
committee positions have been made by the Directors.
None of the Directors held directorship in more than 20 Indian companies including 10 public limited companies.
None of the Directors were related to any Director or member of an extended family.
None of the Independent Directors of the Company served as Independent Director in more than 7 listed companies.
Mr. Anil Sardana, CEO & Managing Director and Mr. Ashok S. Sethi, COO & Executive Director are not Independent Directors of
any other listed company.
All Independent Directors of the Company have been appointed as per the provisions of the Act. Formal letters of appointment
have been/will be issued to the Independent Directors.
Changes in Board Composition
Name of the Director
Nature of change
Ms. Sandhya S. Kudtarkar Appointed as Additional Director in a non-executive capacity.
Ceased to be Director consequent upon attaining 75 years of age, as required by
the Retirement Policy adopted by Company for retirement of directors (Retirement
Policy).
Table 2
Date of appointment /
change
16th April 2016
18th November 2016
Mr. Piyush G. Mankad
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. Cyrus P. Mistry
Mr. S. Padmanabhan
Mr. N. Chandrasekaran
Mr. Ashok K. Basu
Dr. Homiar S. Vachha
Appointed as Additional Directors in an independent non-executive capacity.
14th October 2016
Resigned as Director. Consequently, also ceased to be Chairman of the Board of
Directors of the Company.
Appointed as Additional Director in a non-executive capacity.
Nominated as Chairman of the Board of Directors of the Company by Tata Sons
Limited.
Appointed as Additional Director in a non-executive capacity. Also nominated as
Chairman of the Board of Directors of the Company by Tata Sons Limited.
Ceased to be Director consequent upon attaining 75 years of age, as required by
the Retirement Policy.
Ceased to be Director consequent upon attaining 75 years of age, as required by
the Retirement Policy.
19th December 2016
16th December 2017
3rd January 2017
11th February 2017
24th March 2017
23rd April 2017
4th May 2017
Mr. K. M. Chandrasekhar Appointed as Additional Directors in an independent non-executive capacity.
Report on Corporate Governance I 125
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Term of Board membership
As per the terms of the Governance Guidelines adopted by the Company, the Nomination and Remuneration Committee (NRC)
determines the appropriate characteristics, skills and experience required for the Board as a whole and for individual members. Board
members are expected to possess the required qualifications, integrity, expertise and experience for the position. They also possess
expertise and insights in sectors / areas relevant to the Company, and have ability to contribute to the Company’s growth. As per the
Governance Guidelines, the retirement age for Managing / Executive Directors, NEDs and Independent Directors is 65 years, 70 years
and 75 years, respectively.
Selection and appointment of new directors
The Board is responsible for the selection of new directors. The Board has delegated the screening and selection process involved in
selecting new directors to the NRC. Considering the existing composition of the Board and requirement of new domain expertise, if
any, the NRC reviews the potential candidates. The assessment of members to the Board is based on a combination of criteria that
include ethics, personal and professional stature, domain expertise, gender diversity and specific qualification required for the position.
The potential Board member is also assessed on the basis of independence criteria defined in Section 149(6) of the Act and Regulation
16(1)(b) of the Listing Regulations. The NRC then places the details of the shortlisted candidate who meets these criteria, before the
Board for its consideration. If the Board approves, the person is appointed as a Director, subject to the approval of the Members at
the Company’s general meeting.
Letter of appointment
The Independent Directors on the Board of the Company, upon appointment, are given a formal appointment letter inter alia containing
the term of appointment, role, duties and responsibilities, time commitment, remuneration, insurance, code of conduct, training and
development, performance evaluation process, disclosure, confidentiality etc. The terms and conditions of appointment of Independent
Directors are available on the Company’s website www.tatapower.com/pdf/Terms-&-conditions-of-IDs-appointment.pdf
Securities held by NED(s) in the Company as on 31st March 2017
Table 3
Name of Director
Mr. Sanjay V. Bhandarkar*
No. of equity shares held
16,262
No. of convertible instruments held
Nil
* As a joint holder
Board meetings
Dates for Board meetings in the ensuing year are decided in advance and circulated to all Directors. The agenda for each meeting,
along with detailed notes, is circulated in advance to the Directors.
With a view to leverage technology and reducing paper consumption, the Company has adopted a digital application for transmitting
Board / Committee agendas and notes. The Directors of the Company receive the agenda notes in electronic form through this
application, which is accessible through iPads. The application meets high standards of security and integrity that are essential for
storage and transmission of sensitive information in electronic form.
Nine Board meetings were held during the year and the gap between two meetings did not exceed 120 days. These meetings were held on
23rd May 2016, 11th July 2016, 4th August 2016, 23rd August 2016, 14th October 2016, 29th November 2016, 16th December 2016,
10th February 2017 and 31st March 2017. Two separate meetings of Independent Directors were also held on 10th February 2017 and
31st March 2017, which were attended by all the Independent Directors except Dr. Homiar S. Vachha.
Attendance of directors during FY 2017
Sl.
No.
Name of the Director
and Business Relationship
Category of
Directorship
No. of Board
Meetings attended
1. Mr. N. Chandrasekaran, Chairman
2. Mr. S. Padmanabhan
3. Mr. Cyrus P. Mistry
4. Mr. Pravin H. Kutumbe (LIC Nominee)
5. Ms. Sandhya S. Kudtarkar
Non-Independent,
Non-Executive
Nil
2
7
8
8
Table 4
Attendance at
AGM held on
21st September 2016
NA
NA
Yes
Yes
Yes
126 I Report on Corporate Governance
The Tata Power Company Limited Sl.
No.
Name of the Director
and Business Relationship
Category of
Directorship
No. of Board
Meetings attended
6. Dr. Homiar S. Vachha
7. Mr. Nawshir H. Mirza
8. Mr. Deepak M. Satwalekar
9. Mr. Piyush G. Mankad
10. Mr. Ashok K. Basu
11. Ms. Anjali Bansal
12. Ms. Vibha Padalkar
13. Mr. Sanjay V. Bhandarkar
14. Mr. Anil Sardana, CEO & Managing Director
15. Mr. Ashok S. Sethi, COO & Executive Director
Information provided to the Board
Independent,
Non-Executive
Executive
7
9
8
5
8
4
4
4
9
9
Attendance at
AGM held on
21st September 2016
Yes
Yes
Yes
No
Yes
NA
NA
NA
Yes
Yes
The Board has unrestricted access to all Company-related information. At Board / Committee meetings, department heads and
representatives who can provide additional insights into the items being discussed, are invited. The Company provides the following
information inter alia to the Board, which is given either as part of the agenda or by way of presentations during the meetings:
•
•
•
•
•
•
Annual operating plans and budgets, capital budgets and other updates.
Quarterly, half-yearly and annual financial results of the Company and its operating divisions or business segments.
Detailed presentations on business strategy and future outlook of the Company.
Minutes of meetings of various Committees of the Board.
Subsidiary companies’ minutes, financial statements and significant transactions and investments.
The information on recruitment and remuneration of key executives just below the Board level, including appointment or
removal of Chief Financial Officer and the Company Secretary.
Significant regulatory matters concerning Indian or foreign regulatory authorities.
Issues which involve possible public or product liability claims of a substantial nature, if any.
Detailed analysis of potential acquisition targets or possible divestments.
Details of any joint venture or collaboration agreements.
Transactions that involve substantial payment toward goodwill, brand equity or intellectual property.
Significant sale of investments, subsidiaries or assets which are not in the normal course of business.
Materially important show cause, demand, prosecution and penalty notices, if any.
Fatal or serious accidents or dangerous occurrences, if any.
Significant effluent or pollution problems, if any.
Material default in financial obligations to and by the Company or substantial non-payment for goods sold by the Company,
if any.
Significant labour problems and their proposed solutions, if any.
Significant developments in the human resources and industrial relations fronts.
Quarterly details of foreign exchange exposure and the steps taken by management to limit the risks of adverse exchange rate
movement.
Non-compliance of any regulatory or statutory nature or listing requirements as well as shareholders’ services such as non-
payment of dividend and delays in share transfer, if any.
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Post meeting follow up mechanism
The important decisions taken at Board / Committee meetings are communicated to the concerned departments / divisions promptly.
An action taken/status report on the decisions of the previous meeting(s) is placed at the next meeting of the Board for information
and further recommended action(s), if any.
Meeting of Independent Directors
During the year, the Independent Directors of the Company met on 10th February 2017 and 31st March 2017, without the presence of
Executive Directors and other members of management. At the meeting held on 31st March 2017, the Independent Directors reviewed
the performance of Non-Independent Directors, the Chairman and the Board as a whole. They also assessed the quality and adequacy
of the information between the Company’s management and the Board.
Report on Corporate Governance I 127
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Annual Strategy Board Meet
An Annual Strategy Board meet was organised in October 2016. As a part of the agenda, the Board conducted a strategy review of the
Company’s business segments, and also future growth, risk orientation and resource optimization.
Details of familiarisation programmes for Directors including Independent Directors
All Board members of the Company are afforded every opportunity to familiarize themselves with the Company, its management,
its operations and above all, the Industry perspective and issues. They are made to interact with senior management personnel and
pro-actively provided with relevant news, views and updates on the Company and sector. All the information/documents sought
by them is/are also shared with them for enabling a good understanding of the Company, its various operations and the industry of
which it is a part.
An offsite Board familiarisation programme was held on 29th March 2017 for the Board members where various internal and external
speakers provided inputs on varied industry related topics. The web link containing details of the familiarisation programmes is
www.tatapower.com/pdf/familiarisation-programme-for-directors.pdf
In addition to the above, the Company has an exclusive web based information portal, which is made available to all Directors. This
has sections on Company matters; Laws & Regulations; Sustainability aspects; Company’s quarterly progress on various operating
units, projects under construction etc.
Code of Conduct
The Company has adopted the Code of Conduct for NEDs which includes details as laid down in Schedule IV to the Act. The
web link for the same is www.tatapower.com/aboutus/pdf/Code-of-Conduct-NEDs.pdf. The Company has also adopted the
TCoC for all its employees including CEO & Managing Director and COO & Executive Director. The web link for the same is
www.tatapower.com/tcoc2015.pdf. All Board Members and Senior Management Personnel have affirmed compliance with their
respective Code of Conduct. The CEO & Managing Director has also confirmed and certified the same. This certification is reproduced
at the end of this Report.
Remuneration to Directors
Details of remuneration to NEDs during and for the year under review:
Name of the Director
Sitting Fees paid for FY17*
Commission payable for FY17**
[Gross Amount (`)] Table 5
Mr. N. Chandrasekaran&
Mr. S. Padmanabhan
Mr. Cyrus P. Mistry#
Dr. Homiar S. Vachha
Mr. Nawshir H. Mirza
Mr. Deepak M. Satwalekar
Mr. Piyush G. Mankad
Mr. Ashok K. Basu
Mr. Pravin H. Kutumbe@
Ms. Sandhya S. Kudtarkar
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
0
1,50,000
3,90,000
6,60,000
9,60,000
10,50,000
3,30,000
2,70,000
2,70,000
2,40,000
2,40,000
3,30,000
2,40,000
0
13,00,000
0
59,50,000
94,50,000
80,50,000
24,50,000
17,50,000
13,00,000
13,00,000
13,50,000
20,00,000
11,00,000
*Excludes service tax
**Commission relates to the financial year ended 31st March 2017, which was approved by the Board on 19th May 2017, to be paid
during FY18.
&Mr. Chandrasekaran has not attended any meeting in FY17 and hence, was not paid any sitting fees or commission.
#Mr. Mistry, being Executive Chairman of Tata Sons Limited till 24th October 2016, has not accepted any commission till such date.
@ The sitting fees for attending meetings and the commission is paid to LIC.
None of the NEDs had any pecuniary relationship or transactions with the Company other than the Sitting Fees and
Commission received by them. The Company also reimburses the out-of-pocket expenses incurred by the Directors for attending
meetings.
128 I Report on Corporate Governance
The Tata Power Company Limited The NEDs are paid remuneration by way of Commission and Sitting Fees. The distribution of Commission amongst the NEDs is placed
before the NRC and the Board. The Commission payment for the financial year ended 31st March 2017 was distributed broadly on the
following basis:
1.
2.
3.
4.
Number of meetings of the Board and substantive Committees of the Board attended;
Role and responsibility as Chairman/Member of the Board/Committee;
Individual contribution at meetings; and
Time spent other than in meetings relating to the operations of the Company.
Details of remuneration and perquisites paid and/or value calculated as per the Income-tax Act, 1961 to the Managing
Director and Executive Director:
Name
Mr. Anil Sardana, CEO &
Managing Director
Mr. Ashok S. Sethi, COO &
Executive Director
Salary &
Allowances
2,38,12,250
* Commission for
FY17
5,00,00,000
Perquisites &
Benefits
7,59,562
Retirement
Benefits
26,73,000
(`) Table 6
Total
7,72,44,812
1,49,12,134
1,60,00,000
19,597
6,98,400
3,16,30,131
*Commission (variable component) relates to the financial year ended 31st March 2017, which was approved by the Board on
19th May 2017, to be paid during FY18.
Salient features of the agreements executed/to be executed by the Company with Mr. Sardana and Mr. Sethi, consequent upon
obtaining Members’ approval at the AGM:
Table 7
Terms of Agreement
Period of appointment
Remuneration
Commission
- Incentive Remuneration
- Benefits, perquisites and allowances (excluding
Company’s contribution to Provident Fund,
Superannuation, Gratuity, Leave Encashment)
Mr. Anil Sardana
CEO & Managing Director
1-2-2016 to 31-1-2021
Basic salary upto a maximum of
` 9,50,000 p.m.
Mr. Ashok S. Sethi
COO & Executive Director
1-4-2017 to 30-4-2019
Basic salary upto a maximum of
` 7,00,000 p.m.
At the discretion of the Board within the limits stipulated under the Act.
At the discretion of the Board, not exceeding 200% of basic salary.
As may be determined by the Board from time to time.
Notice period
Severance fees
Stock Option
The Agreements may be terminated by either party giving to the other party six
months’ notice or the Company paying six months’ remuneration in lieu thereof.
There is no separate provision for payment of severance fees.
Nil
The above agreements are contractual in nature.
Board Committees
Ø
Mandatory Committees
The Company has constituted the following mandatory Committees:
•
•
•
•
•
Audit Committee of Directors
Nomination and Remuneration Committee
Corporate Social Responsibility Committee
Stakeholders Relationship Committee
Risk Management Committee
Audit Committee of Directors
Currently, the Committee comprises the following:
•
•
•
•
Mr. N. H. Mirza, Chairman
Mr. S. Padmanabhan
Ms. V. Padalkar
Mr. S. V. Bhandarkar
Report on Corporate Governance I 129
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE All members are financially literate and bring in expertise in the fields of finance, accounting, development, strategy and management.
The Committee met 11 times during the year. These meetings were held on 2nd May 2016, 20th May 2016, 3rd August 2016, 19th August
2016, 27th September 2016, 3rd November 2016, 28th November 2016, 8th December 2016, 9th February 2017, 21st February 2017 and
27th March 2017, with the requisite quorum. The attendance details of these meetings are as follows:
Sl. No.
1.
2.
3.
4.
5.
Name of the Director
Category
Dr. H. S. Vachha, Chairman
Mr. D. M. Satwalekar
Mr. P. G. Mankad (ceased w.e.f. 18.11.2016)
Mr. N. H. Mirza (appointed w.e.f. 23.05.2016)
Ms. V. Padalkar (appointed w.e.f. 14.10.2016)
Independent,
Non-Executive
Table 8
No. of meetings attended
8
10
6
9
5
The management is responsible for the Company’s internal controls and the financial reporting process while the Statutory Auditors
are responsible for performing independent audits of the Company’s financial statements for issuing reports based on such audits.
The Board of Directors has entrusted this Committee with the responsibility of supervising these processes and thus ensure accurate
and timely disclosures that maintain the transparency, integrity and quality of financial control and reporting.
The Company has adopted the Charter of this Committee to bring the terms of reference, role and scope in conformity with the
provisions of Section 177(4) of the Act and Regulation 18(3) read with Part C of Schedule-II of the Listing Regulations. The Charter
specifies the composition, meetings, quorum, powers, roles and responsibilities etc. of the Committee.
The role and responsibilities of the Audit Committee are:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Oversight of the Company’s financial reporting processes and disclosure of financial information to ensure that the financial
statements are correct, complete, consistent with information known to the Committee members, sufficient and credible.
Reviewing, with management, the quarterly/annual financial statements and Auditor’s Report thereon, before submission to
the Board for approval, focusing primarily on:
- Matters required to be included in the Directors’ Responsibility Statement to be included in the Board’s Report in terms of
clause (c) of sub-section 3 of Section 134 of the Act
Significant adjustments made in the financial statements arising out of audit findings
The going concern assumption
- Any changes in accounting policies and practices and reasons for the same
- Major accounting entries involving estimates based on exercise of judgement by management
- Modified opinion(s) in the draft audit report
-
-
- Compliance with accounting standards and accounting principles
- Compliance with stock exchange, legal and regulatory requirements concerning financial statements
- Disclosure of any related party transactions.
The effect of regulatory and accounting initiatives as well as off-balance-sheet structures, on the financial statements.
Scrutinize inter-corporate loans and investments.
Conduct a valuation of undertakings or assets of the Company, wherever it is necessary.
To consider the valuation report submitted by an Independent Chartered Accountant pursuant to a Scheme of Arrangement
(Amalgamation/Merger/Reconstruction/ Reduction of Capital etc.) and furnish a report recommending the draft scheme, taking
into consideration, inter alia, the aforementioned valuation report.
Recommend to the Board, the appointment, re-appointment and, if required, the replacement or removal of the Statutory
Auditor and the fixation of audit fees and terms of appointment.
Discuss with Statutory Auditor, before the audit commences, the nature and scope of audit plan as well as post-audit discussion/
review to ascertain any area of concern and the coordination of audit effort.
Review with Statutory Auditor, any audit problems or difficulties and management’s response and resolve any disagreements
of the Statutory Auditor with the management regarding financial reporting.
Reviewing and monitoring the Auditor’s independence and performance, and effectiveness of audit process.
Review the adequacy of internal audit function, including the structure and charter of the internal audit department (including
outsourced internal audit firms), staffing and seniority of the official heading the department, reporting structure coverage
budget and frequency of internal audit.
Review the appointment, removal and terms of remuneration of the Chief Internal Auditor and external internal auditors.
Appointment of Cost Auditors.
Evaluate on a regular basis the adequacy of risk management systems.
130 I Report on Corporate Governance
The Tata Power Company Limited •
•
•
•
•
•
•
•
•
•
•
•
Review with the management, performance of Statutory and Internal Auditors and outsourced internal audit firms, the quality,
adequacy and effectiveness of internal control systems and any significant deficiencies or material weakness in the internal controls.
Review the effectiveness of the system for monitoring compliance with applicable laws and regulations.
Review the functioning of the vigil mechanism.
Subsidiary company oversight.
Review the financial statements, in particular, the investments made by the unlisted subsidiary.
Approval of payment to Statutory Auditors for any other services rendered by the Statutory Auditor.
Reviewing, with the management, the statement of uses / application of funds raised through an issue (public issue, rights issue,
preferential issue etc.), the statement of funds utilized for purposes other than those stated in the offer document / prospectus
/ notice and the report submitted by the monitoring agency monitoring the utilisation of proceeds of a public or rights issue,
and making appropriate recommendations to the Board to take up steps in this matter.
Approval or any subsequent modification of transactions of the Company with related parties.
Discussion with internal auditors of any significant findings and follow up there on.
Reviewing the findings of any internal investigations by the Internal Auditors into matters where there is suspected fraud or
irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board.
To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, shareholders (in case of
non-payment of declared dividends) and creditors.
Approval of appointment of Chief Financial Officer after assessing the qualifications, experience and background etc. of the
candidate.
The Board has delegated the following powers to this Committee:
•
•
•
•
•
•
•
•
•
Investigate any activity within the scope of its Charter or referred to it by the Board.
Appoint, compensate and oversee the work of any registered public accounting firm employed by the Company.
Pre-approve all audit and non-audit services.
Seek any information from any employee or Director of the Company.
Engage independent counsel and other advisors and seek their advice.
Secure attendance of outsiders with relevant expertise.
Have full access to the books of accounts, company facilities, employees and any other service provider to the Company.
Meet with Company officers, external auditors, or outside counsel, as necessary.
Engage a valuer where a valuation needs to be made for any property, stock, shares, debentures, or goodwill or any other
assets or net worth of the Company or its liabilities.
The Committee invites such of the executives as it considers appropriate (and particularly the head of the finance function) to be
present at its meetings. The CEO & Managing Director, COO & Executive Director, Chief Financial Officer and head of Internal Audit
attend the meetings as per invitation by the Committee. The Statutory Auditors are also invited to the meetings. Mr. H. M. Mistry, the
Company Secretary, acts as the Secretary of the Committee.
The Internal and Statutory Auditors of the Company discuss their audit findings and updates with the Committee and submit their
views directly to the Committee. Separate discussions are held with the Internal Auditors to focus on compliance issues and to conduct
detailed reviews of the processes and internal controls in the Company. The permissible non-audit related services undertaken by the
Statutory Auditors are also pre-approved by the Committee.
In accordance with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015 (the Regulations),
the Board of Directors of the Company has adopted the Tata Code of Conduct for Prevention of Insider Trading and Code of Corporate
Disclosure Practices (the Code) to be followed by Directors, employees and other connected persons. The Code is based on the principle
that Directors and the employees of a Tata Company owe a fiduciary duty to, among others, the Members of the Company to place
the interest of the Members above their own and conduct their personal securities transactions in a manner that does not create any
conflict of interest situation. The Code contains regulations for preservation of price sensitive information, pre-clearance of trade and
monitoring and implementation of the Code. Under the Code, the Committee is empowered:
•
•
•
To approve policies in relation to the implementation of the Code and to supervise implementation of the Code.
To note and take on record the status reports detailing the dealings by Designated Persons in securities of the Company, as
submitted by the Compliance Officer on a quarterly basis.
To provide directions on any penal action to be initiated, in case of any violation of the Regulations by any person.
In terms of this Code, Mr. Ramesh N. Subramanyam, CFO continues to be ‘Compliance Officer’ and Mr. Anand Agarwal, Chief - M&A and
Strategic Finance is designated as the ‘Chief Investor Relations Officer’.
Report on Corporate Governance I 131
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Nomination and Remuneration Committee
Currently, the Committee comprises the following:
•
•
•
Mr. D. M. Satwalekar, Chairman
Mr. N. Chandrasekaran
Ms. Anjali Bansal
The Committee met 5 times during the year. These meetings were held on 16th May 2016, 3rd October 2016, 30th November 2016,
9th February 2017 and16th March 2017. The attendance details of these meetings are as follows:
Sl. No.
1.
2.
3.
4.
5.
6.
Name of the Director
Category
Mr. N. H. Mirza, Chairman
Dr. H. S. Vachha
Mr. D. M. Satwalekar (appointed w.e.f. 23.05.2016)
Ms. Anjali Bansal (appointed w.e.f. 14.10.2016)
Mr. S. Padmanabhan (appointed w.e.f. 10.01.2017)
Mr. C. P. Mistry (ceased w.e.f. 19.12.2016)
Independent,
Non-Executive
Non-Independent,
Non-Executive
Table 9
No. of meetings attended
5
3
4
2
2
3
In terms of the provisions of Section 178(3) of the Act and Regulation 19(4) read with Part D of Schedule-II of the Listing Regulations, the
Committee is responsible for formulating the criteria for determining qualification, positive attributes and independence of a Director.
The Committee is also responsible for recommending to the Board a policy relating to the remuneration of the Directors, Key Managerial
Personnel and other employees. The Board has adopted the Policy on Board Diversity & Director Attributes and Remuneration Policy
for Directors, Key Managerial Personnel and other employees of the Company, which are attached as Annexures II and III to the Board’s
Report. The Board has also adopted a Charter of this Committee which specifies its principles and objectives, composition, meetings,
authority and powers, responsibilities, reporting, evaluation etc.
In addition to the duties cast under Section 178 of the Act, the other responsibilities of this Committee are:
•
•
•
•
•
•
Board composition and succession related
Evaluation related
Remuneration related
Board development related
Review of HR Strategy, Philosophy and Practices
Other functions
The Board has delegated the following powers to this Committee:
•
•
•
•
Investigate any activity within the scope of its Charter or referred to it by the Board.
Seek any information or explanation from any employee or Director of the Company.
Ask for any records or documents of the Company.
In the context of any of the above, it may also engage independent consultants and other advisors and seek their advice.
Board Evaluation
The Board carries out an annual evaluation of its own performance, as well as the working of its Committees. The Board works with the
Committee to lay down the criteria for the performance evaluation. The contribution and impact of individual Directors is reviewed
through a peer evaluation on parameters such as level of engagement and participation, flow of information, independence of
judgement, conflicts resolution and their contribution in enhancing the Board’s overall effectiveness. Feedback-cum-assessment of
individual Directors, the Board as a whole and its Committees is conducted. The feedback obtained from the interventions is discussed
in detail and, where required, independent and collective action points for improvement are put in place.
Corporate Social Responsibility Committee
Currently, the Committee comprises the following:
•
•
•
Ms. Anjali Bansal, Chairperson
Mr. D. M. Satwalekar
Mr. Anil Sardana
132 I Report on Corporate Governance
The Tata Power Company Limited During the year, the Committee met 4 times on 28th June 2016, 9th September 2016, 30th November 2016 and 27th February 2017. The
attendance details of these meetings are as follows:
Sl. No.
1.
2.
3.
Name of the Director
Mr. D. M. Satwalekar, Chairman
Mr. Anil Sardana
Mr. A. S. Sethi (ceased w.e.f. 23.04.2017)
Category
Independent, Non-Executive
Executive
Table 10
No. of meetings attended
4
4
4
The Company has adopted a CSR policy which indicates the activities to be undertaken by the Company as specified in Schedule
VII to the Act. The policy, including overview of projects or programs proposed to be undertaken, is provided on the Company
website www.tatapower.com.
The broad terms of reference of the Committee are as under:
a)
b)
c)
Formulate and recommend to the Board, a CSR Policy which shall indicate the activities to be undertaken by the Company as
specified in Schedule VII to the Act or may be prescribed by the rules thereto;
Recommend the amount of expenditure to be incurred on the activities referred to in the above clause; and
Monitor the CSR Policy of the Company from time to time.
Stakeholders Relationship Committee
Currently, the Committee comprises the following:
•
•
•
•
Mr. S. V. Bhandarkar, Chairman
Mr. P. H. Kutumbe
Ms. S. S. Kudtarkar
Mr. A. S. Sethi
The Committee met twice during the year on 12th October 2016 and 27th March 2017. The attendance details of these meeting are as
follows:
Table 11
Sl. No.
1.
2.
3.
4.
Name of the Director
Dr. H. S. Vachha, Chairman
Mr. S. V. Bhandarkar (appointed w.e.f. 14.10.2016)
Mr. P. H. Kutumbe
Mr. A. S. Sethi
Category
Independent,
Non-Executive
Non-Independent, Non-Executive
Executive
No. of meetings attended
1
1
1
2
The Committee specifically discharges duties of servicing and protecting the interest of shareholders, redressing investors’ complaints
and requests.
The Board has adopted the Charter of the Committee which specifies the composition, meetings, quorum, authority and powers, roles
and responsibilities etc. of the Committee.
The role and responsibilities of this Committee are to:
•
•
•
•
•
•
•
•
•
•
•
•
Review statutory compliance relating to all security holders.
Resolution of the grievances of all security holders. This includes tracking and monitoring of the redressal of all security holders
and investor complaints including complaints related to transfer of securities, non-receipt of annual report/declared dividends.
Oversight of compliances in respect of dividend payments and transfer of unclaimed amounts to the Investor Education and
Protection Fund.
Oversight and review of all matters related to the transfer of securities of the Company.
Ensure setting of proper controls and oversight of performance of the Registrar and Share Transfer Agent.
Approval of issue of duplicate share certificates of the Company.
Approval of transmission of securities.
Review of movements in shareholding and ownership structure of the Company.
Recommend measures for overall improvement of the quality of investor services.
Conduct a Shareholder Satisfaction Survey to judge the level of satisfaction amongst shareholders.
Suggest and drive implementation of various shareholder-friendly initiatives.
Carry out any other function as is referred by the Board from time to time or enforced by any statutory notification / amendment
or modification as may be applicable.
Report on Corporate Governance I 133
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE The Board has delegated the following powers to this Committee:
•
•
•
•
To investigate any activity within the scope of its Charter or referred to it by the Board.
Seek any information or explanation from any employee or Director of the Company.
Ask for any records or documents of the Company.
Engage independent consultants and advisors, including legal counsel or expert, as it deems appropriate.
Name, designation and address of the Compliance Officer:
Mr. H. M. Mistry, Company Secretary
Bombay House, 24, Homi Mody Street, Mumbai 400 001
Tel: 022 6665 7515 Fax: 022 6717 1004
In accordance with Regulation 6 of the Listing Regulations, the Board has appointed Mr. H. M. Mistry, Company Secretary as the
Compliance Officer. He is authorised to severally approve share transfers/ transmissions, in addition to the powers with the members
of the Committee. Share transfer formalities are regularly attended to and at least once a fortnight.
All investor complaints which cannot be settled at the level of the Compliance Officer, are placed before the Committee for final
settlement.
The status of total number of complaints received during the year under review is as follows:
Description
Sl.
No.
A. Letters received from Statutory Bodies
Securities & Exchange Board of India
Stock Exchanges
Depositories (NSDL/CDSL)
Ministry of Corporate Affairs
Consumer Forum
B. Dividends
Non-receipt of dividend / interest warrants (pending reconciliation at the time of receipt of letters)
Total
Table 12
Total
Received Replied
Pending
17
3
1
0
0
4
25
12
3
1
0
0
4
20
5
0
0
0
0
0
5
•
•
For the 5 unresolved complaints received through the SEBI SCORES System (System), the ATRs have been uploaded on the
System and the same are pending for closure.
There were no pending transfers/demats as on 31st March 2017.
Risk Management Committee
Currently, the Committee comprises the following:
•
•
•
•
•
•
Mr. N. H. Mirza, Chairman
Mr. S. Padmanabhan
Ms. V. Padalkar
Mr. A. S. Sethi
Mr. R. N. Subramanyam, CFO
Mr. P. G. Date, Chief-Internal Audit & Risk Management
The Committee met thrice during the year. These meetings were held on 5th August 2016, 3rd October 2016 and 20th December 2016.
The attendance details of these meetings are as follows:
Sl. No.
1.
2.
3.
4.
5.
6.
7.
Name of the Director
Category
Dr. H. S. Vachha, Chairman
Mr. N. H. Mirza (appointed w.e.f. 23.05.2016)
Mr. D. M. Satwalekar
Ms. V. Padalkar (appointed w.e.f. 14.10.2016)
Mr. A. S. Sethi
Mr. R. N. Subramanyam
Mr. P. G. Date
Independent,
Non-Executive
Executive
Chief Financial Officer
Chief - Internal Audit & Risk Management
Table 13
No. of meetings attended
3
3
3
Nil
3
3
3
134 I Report on Corporate Governance
The Tata Power Company Limited The Board has adopted Risk Management Strategy Document which specifies the objective, benefits of Risk Management, Risk
Management Policy, Risk Management Process, Risk Organization Structure, Risk Culture etc. The Risk Management policy is available
on the Company’s website www.tatapower.com. The role and responsibilities of this Committee include the following:
•
•
•
•
•
•
To review Risk Management Policy and its deployment.
To review Risk Management Framework and its effectiveness and set direction.
To monitor and review Risk Management Plan.
To decide the risk appetite of the Company and, accordingly, guide the Board in taking up new investments.
To review the major risks.
To report high value risks and its mitigation to the Board.
Ø
Non-mandatory Committees
The following are the non-mandatory Committees of the Board:
Executive Committee of the Board
Mr. N. Chandrasekaran, Chairman
Mr. S. Padmanabhan
Mr. D. M. Satwalekar
Mr. S. V. Bhandarkar
Mr. Anil Sardana
Mr. A. S. Sethi
Currently, this Committee comprises the following:
•
•
•
•
•
•
This Committee covers a detailed review of business and strategy review, long-term financial projections and cash flows, capital
and revenue budgets and capital expenditure programmes, acquisitions, divestments and business restructuring proposals, senior
management succession planning, any other item as may be decided by the Board, before being presented to the full Board.
Committee for Financial Facilities and Bank Accounts
Currently, this Committee comprises the following:
•
•
•
Mr. N. H. Mirza, Chairman
Mr. Anil Sardana
Mr. A. S. Sethi
The role of this Committee is to inter alia approve assignment of the Company’s working capital lines to its subsidiaries and to provide
corporate guarantees to secure working capital lines sanctioned to subsidiaries, accept modifications to the terms and conditions of
the working capital facilities that may be made by the banks/financial institutions.
Committee of Executive Directors of the Board
Currently, this Committee comprises the following:
•
•
Mr. Anil Sardana
Mr. A. S. Sethi
The role of this Committee is to inter alia approve change in operating instructions of the Company’s Bank Accounts, submission of Request
for Qualification for any project and authorise execution of all documents, including Powers of Attorney, in connection with the same.
General Body Meetings
The details of the last three Annual General Meetings (AGMs) of the Company are as follows:
Financial Year ended
Day, Date and Time
Venue
Special Resolutions passed
31st March 2014
31st March 2015
31st March 2016
Wednesday, 13th August
2014, at 3 p.m.
Wednesday, 5th August
2015, at 3 p.m.
Wednesday, 21st
September 2016, at 3 pm
Birla Matushri
Sabhagar,
Sir Vithaldas
Thackersey Marg,
19, New Marine
Lines, Mumbai
400 020
• Private placement of Non-Convertible Debentures
• Borrowing limits of the Company
• Creation of charges
• Increase in limits of investments in other bodies corporate
• Private placement of Non-Convertible Debentures
• Increase in limits of investments in other bodies corporate
• Private placement of Non-Convertible Debentures
• Increase in limits of investments in other bodies corporate
Table 14
Report on Corporate Governance I 135
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE During the year under review, no special resolution has been passed through the exercise of postal ballot. Currently, no special resolution
is proposed to be conducted through postal ballot.
Means of Communication to the shareholders
Quarterly Results: Quarterly and half-yearly reports are published in the following newspapers:
Name of the Newspaper
Indian Express – All editions
Financial Express
Loksatta – All editions
Jam-e-Jamshed Weekly
Vyapar + Phulchhab
Region
Ahmedabad, Vadodara, Mumbai, Chandigarh, New Delhi, Kolkata,
Lucknow, Nagpur and Pune
Mumbai, Pune, Ahmedabad, New Delhi, Lucknow, Chandigarh, Kolkata,
Hyderabad, Bengaluru, Kochi and Chennai
Ahmednagar, Mumbai, Pune, Nagpur, Aurangabad and New Delhi
Mumbai
Mumbai and Rajkot
Table 15
Language
English
English
Marathi
Gujarati
Gujarati
Annual Reports: The Annual Reports are emailed/posted to Members and others entitled to receive them.
News Releases, Presentations etc.: Official news releases, detailed presentations made to media, analysts, institutional investors etc.
are displayed on the Company’s website. Official media releases, sent to the Stock Exchanges, are given directly to the press.
Website: Comprehensive information about the Company, its business and operations, Press Releases and investor information can
be viewed at the Company’s website www.tatapower.com. The ‘Investor Relations’ section serves to inform the investors by providing
key and timely information like financial results, annual reports, shareholding pattern, presentations made to analysts etc.
NSE Electronic Application Processing System (NEAPS) and BSE Online Portal: The Company also submits to NSE all disclosures and
intimations through NEAPS portal. Similar filings are made to BSE on their online Portal - BSE Corporate Compliance & Listing Centre.
Extensive Business Reporting Language (XBRL): XBRL is a language for electronic communication of business and financial data. It
offers major benefits to all those who have to create, transmit, use or analyse such information which aids better analysis and decision
making. Ministry of Corporate Affairs (MCA), vide its Circular No.8/2012 dated 10th May 2012 [as amended on 29th June 2012], has
already mandated all cost auditors and the concerned companies to file their Cost Audit Reports and Compliance Reports for the year
2011-12 onwards [including the overdue reports relating to any previous year(s)] only in the XBRL mode. The Company has filed its
Cost Audit Report and Compliance Report on MCA through XBRL.
Web-based Query Redressal System: Members also have the facility of raising their queries/complaints on share related matters
through a facility provided on the ‘Investor Relations’ section.
SEBI Complaints Redress System (SCORES): A centralised web-based complaints redressal system which serves as a centralised
database of all complaints received, enables uploading of Action Taken Reports (ATRs) by the concerned company and online viewing
by the investors of actions taken on the complaint and its current status.
General Shareholder Information
(a)
Details of AGM
: Wednesday, 23rd August 2017 at 3:00 p.m. at Birla Matushri Sabhagar,
Sir Vithaldas Thackersey Marg, 19, New Marine Lines, Mumbai 400 020.
(b)
(c)
(d)
Financial Year
Dividend Payment Date
Listing on Stock Exchanges
: 1st April 2016 to 31st March 2017
: On and from 24th August 2017
: The Company’s Equity Shares are listed on the following two Stock Exchanges in India:
BSE Limited (BSE)
(Regional Stock Exchange)
Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai 400001
National Stock Exchange of India Limited (NSE)
Exchange Plaza
Bandra-Kurla Complex Bandra (E),
Mumbai 400 051
In February 1994, the Company jointly with the erstwhile The Tata Hydro-Electric Power Supply Company Limited and
The Andhra Valley Power Supply Company Limited issued Global Depository Shares (GDS) in the International Market which have
been listed on Luxembourg Stock Exchange, 35 Boulevard Joseph II, 1840, Luxembourg and have been accepted for clearance through
Euroclear and Cedel. They have also been designated for trading in the PORTAL System of the National Association of Securities
Dealers, Inc.
In July 2009, the Company raised USD 335 million through offering of Global Depositary Receipts (GDRs). The GDRs are listed and
traded in Euro MTF market of Luxembourg Stock Exchange and are also available for trading on IOB (International Order Board) of
London Stock Exchange.
136 I Report on Corporate Governance
The Tata Power Company Limited
In August 2016, the Company issued 35,000 Unsecured, Non-Cumulative, Redeemable, Taxable, Listed, Rated Non-Convertible
Debentures on Private Placement basis of ₹ 10,00,000 each. The said debentures are listed on NSE.
The following series of Debentures issued by the Company are listed on the Wholesale Debt Market segment of NSE:
Series
Amount
outstanding as on
31/3/2017 (` crore)
Sl.
No.
1.
2.
10.10% Redeemable Transferable Secured Non-Convertible
Debentures
10.40% Redeemable Transferable Secured Non-Convertible
Debentures
3.
5.
4.
9.15% Secured Non-Convertible Non-Cumulative Redeemable
Taxable Debentures with Separately Transferable Redeemable
Principal Parts
9.15% Secured Non-Convertible Non-Cumulative Redeemable
Taxable Debentures with Separately Transferable Redeemable
Principal Parts
9.40% Redeemable Transferable Secured Non-Convertible
Debentures
10.75% Unsecured Debentures
6.
11.40% Perpetual Bonds (also listed on BSE)
7.
9.32% Unsecured, Redeemable, Non-convertible Debentures
8.
9.
9.48% Unsecured, Redeemable, Non-convertible Debentures
10. 9.41% Unsecured, Redeemable, Non-convertible Debentures
11. 7.70% Unsecured, Redeemable, Non-convertible Debentures
500
500
154
200
210
1500
1500
1000
500
500
3500
Table 16
Name of the Debenture Trustee
with full contact details
Central Bank of India
Chander Mukhi, Nariman Point,
Mumbai 400 021
Tel : 2202 6428 Fax : 2204 4336
E-mail: dtcbi@centralbank.co.in
Centbank Financial Services Limited
Central Bank of India - MMO Bldg.,
3rd Floor (East Wing), 55, Mahatma
Gandhi Road, Fort, Mumbai 400 001
Tel : 2261 6217 Fax : 2261 6208
E-mail: info@cfsl.in
IDBI Trusteeship Services Limited
Asian Building, Ground Floor,
17, R. Kamani Marg, Ballard Estate,
Mumbai 400 001
Tel : 4080 7000 Fax : 6631 1776
E-mail: itsl@idbitrustee.com
The Company has paid the requisite Annual Listing Fees to the Stock Exchanges for the financial year 2016-17.
(a)
Stock Code (For Equity Shares):
BSE Limited
(physical form)
(demat form)
National Stock Exchange of India Limited
Table 17
400
500400
TATAPOWER EQ
(b)
Market Price Data: High, Low during each month and trading volumes of the Company’s Equity Shares during the last financial
year at BSE and NSE are given below:
Stock Exchange
Month
High
(`)
BSE
Low
(`)
April 2016
May 2016
June 2016
July 2016
August 2016
September 2016
October 2016
November 2016
December 2016
72.00
75.10
76.50
74.85
78.25
78.65
83.60
78.15
78.45
64.10
68.40
71.85
70.35
70.85
73.45
76.40
68.55
72.85
No. of shares
traded during
the month
2,00,70,952
89,70,762
1,00,01,075
64,64,716
1,49,13,927
1,38,76,339
79,69,610
69,65,933
79,32,351
High
(`)
NSE
Low
(`)
72.00
75.15
76.55
74.90
78.50
79.00
83.65
78.15
78.70
63.90
68.40
72.00
70.35
70.80
73.65
76.45
68.60
72.85
Table 18
No. of shares
traded during
the month
13,75,87,010
8,98,67,098
9,74,51,100
9,04,90,042
14,61,62,374
10,02,82,009
8,38,32,059
9,25,32,090
11,88,79,237
Report on Corporate Governance I 137
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Stock Exchange
Month
January 2017
February 2017
March 2017
High
(`)
81.00
84.95
90.50
BSE
Low
(`)
75.40
80.45
81.00
No. of shares
traded during
the month
89,32,829
1,03,64,576
1,15,56,274
High
(`)
81.00
85.35
90.35
NSE
Low
(`)
75.40
80.45
81.05
No. of shares
traded during
the month
6,94,88,808
6,89,86,825
10,82,66,259
(c)
Performance of Tata Power share price in comparison to BSE Sensex, Nifty and Power Index:
(i) Normalised Tata Power share price in comparison to BSE Sensex and Power Index:
140
135
130
125
120
115
110
105
100
95
6
1
-
r
p
A
6
1
-
y
a
M
6
1
-
n
u
J
6
1
-
l
u
J
6
1
-
g
u
A
6
1
-
p
e
S
6
1
-
t
c
O
6
1
-
v
o
N
6
1
-
c
e
D
7
1
-
n
a
J
7
1
-
b
e
F
7
1
-
r
a
M
Tata Power
BSE Power Index
BSE Sensex
(ii) Performance of Tata Power share price in comparison to Nifty:
95
90
85
80
75
70
65
60
6
1
-
r
p
A
6
1
-
y
a
M
6
1
-
n
u
J
6
1
-
l
u
J
6
1
-
g
u
A
6
1
-
p
e
S
6
1
-
t
c
O
6
1
-
v
o
N
6
1
-
c
e
D
7
1
-
n
a
J
7
1
-
b
e
F
7
1
-
r
a
M
TATA POWER
NSE NIFTY
9500
9000
8500
8000
7500
7000
(d) None of the Company’s securities have been suspended from trading.
138 I Report on Corporate Governance
The Tata Power Company Limited
(e)
Registrars and Share Transfer Agents: TSR Darashaw Limited (TSRDL)
6-10, Haji Moosa Patrawala Industrial Estate (Near Famous Studio),
20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011.
Tel.: 022 6656 8484, Fax: 022 6656 8494
Email: csg-unit@tsrdarashaw.com Website:www.tsrdarashaw.com
For the convenience of Members based in the following cities, transfer documents and letters are also accepted at the undermentioned
branches / agency of TSRDL:
Branches of TSRDL
1.
3.
2.
4.
503, Barton Centre, 5th floor
84, Mahatma Gandhi Road
Bengaluru 560 001
Tel : 080 2532 0321
Fax : 080 2558 0019
E-mail : tsrdlbang@tsrdarashaw.com
Tata Centre, 1st Floor
43, Jawaharlal Nehru Road
Kolkata 700 071
Tel : 033 2288 3087
Fax : 033 2288 3062
E-mail : tsrdlcal@tsrdarashaw.com
Bungalow No.1, ‘E’ Road
Northern Town, Bistupur
Jamshedpur 831 001
Tel : 0657 242 6616
Fax : 0657 242 6937
E-mail: tsrdljsr@tsrdarashaw.com
Plot No.2/42, Sant Vihar
Ansari Road, Darya Ganj
New Delhi 110 002
Tel : 011 2327 1805
Fax : 011 2327 1802
E-mail : tsrdldel@tsrdarashaw.com
Agent of TSRDL
Shah Consultancy Services Pvt. Limited
3, Sumatinath Complex, Pritam Nagar, Akhada Road, Ellisbridge, Ahmedabad - 380 006
Telefax : 079 2657 6038 E-mail : shahconsultancy8154@gmail.com
(f )
Share Transfer
System
: Share transfers in physical form can be lodged with TSRDL at the abovementioned addresses. Transfers are
normally processed within 15 days from the date of receipt. If the documents are complete in all respects,
Mr. H. M. Mistry, the Company Secretary and Compliance Officer and Mr. A. S. Bapat, Head-Corporate
Legal, are severally empowered to approve transfers, in addition to the powers with the Members of the
Stakeholders Relationship Committee.
(g)
Shareholding details of the Company:
i. Distribution of Shares as on 31st March 2017:
Table 19
Slab
Physical
Number of shares
Demat
Total
%
Physical
%
Demat
%
Total
%
Number of shareholders
1-5000
3,29,68,189
12,16,90,032
15,46,58,221
5.72
26,710
91.33
2,45,568
94.57
2,72,278
94.24
5001-10000
10001-20000
20001-30000
30001-40000
40001-50000
50001-100000
100001
and above
Total
1,27,29,828
62,20,683
29,01,713
18,66,208
9,28,065
11,61,400
22,35,820
5,34,81,715
5,12,09,733
2,49,10,425
1,65,92,301
1,18,49,110
3,40,29,475
232,99,98,813
6,62,11,543
5,74,30,416
2,78,12,138
1,84,58,509
1,27,77,175
3,51,90,875
233,22,34,633
2.45
2.12
1.03
0.68
0.47
1.30
86.23
1,866
451
120
53
21
18
8
6.38
1.54
0.41
0.18
0.07
0.06
0.03
7,594
3,688
1,019
478
266
488
564
2.93
1.42
0.39
0.18
0.10
0.19
0.22
9,460
4,139
1,139
531
287
506
572
3.28
1.43
0.39
0.18
0.10
0.18
0.20
6,10,11,906 264,37,61,604 270,47,73,510
100
29,247
100 2,59,665 100.00 2,88,912
100
*Excluding 28,32,060 shares not allotted but held in abeyance, 44,02,700 shares cancelled pursuant to a Court Order and
4,80,40,400 shares of the Company held by the erstwhile The Andhra Valley Power Supply Co. Ltd. cancelled pursuant to the
Scheme of Amalgamation sanctioned by the High Court of Judicature at Bombay.
Report on Corporate Governance I 139
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
ii. Shareholding pattern as on 31st March 2017:
Particulars
Equity Shares of `1 each
Table 20
Promoters (including Promoter Group)
Directors and their relatives
Insurance Companies
Financial Institutions/Banks
Mutual Funds / UTI
Clearing Members
Corporate Bodies
Body Corporate-NBFC
Limited Liability Partnership-LLP
Trusts
Resident Individuals & HUF
Central / State Governments
Foreign Institutional Investors
Foreign Portfolio Investors – Corporate
Foreign Banks
OCBs
Foreign Nationals DR
Foreign Bodies DR
Foreign Institutional Investors – DR
Global Depository Receipts
Non-Resident Indians
Total
iii. Top 10 Shareholders of the Company as on 31st March 2017:
No. of Shares
89,32,00,466
38,862
52,40,47,993
1,19,54,642
9,31,55,900
70,40,827
3,72,20,844
54,422
4,20,223
1,05,06,473
35,15,67,623
34,76,669
5,42,75,833
68,29,82,768
41,66,447
10,400
2,82,200
14,75,797
36,900
33,18,240
2,55,41,981
270,47,73,510
%
33.02
0.00
19.37
0.45
3.44
0.26
1.38
0.00
0.02
0.39
13.00
0.13
2.01
25.25
0.15
0.00
0.01
0.05
0.00
0.12
0.95
100.00
Name of Shareholder
Sl.
No.
1
2
3
4
5
6
7
8
9
10 M. Pallonji and Co. Pvt. Ltd.
Tata Sons Limited
Life Insurance Corporation of India
Matthews Pacific Tiger Fund
First State Investments Icvc- Stewart Investors Global Emerging Markets Leaders Fund
General Insurance Corporation of India
The New India Assurance Company Limited
ICICI Prudential Value Fund
Tata Steel Limited
Stewart Investors Global Emerging Markets Leaders Fund
Total
(h)
Dematerialisation of Shares as on 31st March 2017 and Liquidity:
Total holdings
83,97,99,682
33,22,45,739
16,46,20,436
9,83,66,871
6,77,62,960
6,69,54,953
5,48,14,734
3,91,22,725
3,28,12,816
2,54,57,313
1,72,19,57,869
Table 21
%
to capital
31.05
12.28
6.09
3.64
2.51
2.48
2.03
1.45
1.21
0.94
63.68
The Company’s shares are compulsorily traded in dematerialised form and are available for trading through both the Depositories
in India – National Securities Depository Ltd. (NSDL) and Central Depository Services (India) Ltd. (CDSL).
Table 22
Particulars of Shares
Shares of ` 1 each
Shareholders
Dematerialised form
NSDL
Number
257,72,43,013
% to total
95.28
Number
1,80,806
% to total
62.58
140 I Report on Corporate Governance
The Tata Power Company Limited
Particulars of Shares
Shares of ` 1 each
Shareholders
Dematerialised form
CDSL
Sub-total
Physical form
Total
Number
6,65,18,591
264,37,61,604
6,10,11,906
270,47,73,510
% to total
2.46
97.74
2.26
100.00
Number
78,859
2,59,665
29,247
2,88,912
% to total
27.30
89.88
10.12
100.00
(i)
Number of outstanding Global Depository Shares (GDS) as on 31st March 2017:
•
•
948 (Issued in 1994 to Citibank NA)
2,46,494 (Issued in 2009 to Bank of New York, Mellon)
(j)
Commodity price risk and hedging activity:
The Company is exposed to risk from market fluctuations of coal price for its imported coal based power plant in India and
also for sale of coal from its coal mines in Indonesia.
(k)
Plant location of the Company and group companies:
Type of plants
Thermal Power
Generating Plants
Hydro Generating
Stations
Wind Farms
Table 23
Address of plants
Trombay Generating Station, Mahul Road, Chembur, Mumbai, Maharashtra
Jojobera Power Plant, Jojobera, Jamshedpur, Jharkhand
Haldia Power Plant, HFC Complex, Patikhali Haldia, East Medinipur, West Bengal
Mundra Ultra Mega Power Plant, Tunda-Vandh Road, Village Tunda Taluka Mundra , Kutchh, Gujarat (owned by Coastal
Gujarat Power Ltd., a wholly owned subsidiary)
Maithon Right Bank Thermal Power Plant, Village Dambhui, PO Barbindia Thana Nirsa, District Dhanbad, Jharkhand
(owned by Maithon Power Ltd., a subsidiary)
Industrial Energy Ltd. C/o - The Tata Power Co. Ltd., Inside of Tata Steel Ltd., Kalinganagar, Jajpur, Jajpur Road, Dubri,
Odisha, India.
Rithala CCGT Power Plant, 2/9, Sub Station Building, Behind Char Dham Apartment, Sector 9, Rohini, New Delhi
Generating Station, Bhira P O Bhira, Taluka Mangaon, District Raigad, Maharashtra
Generating Station, Bhivpuri, P O Bhivpuri Camp, Taluka Karjat, District Raigad, Maharashtra
Generating Station, Khopoli, P.O.-Khopoli Power House, District Raigad, Maharashtra
Generating Station, Itezhi Tezhi Power Corporation, Plot 3039, Makishi Road, Fairview, Post Net 239, Private Bag E891,
Manda Hill, Lusaka, Zambia
Dagachhu Hydro Power Corporation Ltd., Dagapela, Dagana, Bhutan
Village Shahjahanpur & Pimpalgaon, Taluka Parner, District Ahmednagar, Maharashtra
Village Khandke, Taluka & District Ahmednagar, Maharashtra
Village Valve, Taluka Sakri, District Dhulia, Maharashtra
Village Sadawaghapur, Taluka – Patan, District Satara Maharashtra
Village Kannarwadi, Hiwarwadi & Agaswadi, Taluka Khatav, District Satara, Maharashtra
Village Sawarghar and Niwade, Taluka Patan, District Satara, Maharashtra
Visapur Wind Farm, Village Kokrale, Visapur, Girijashankarwadi & Rajachekurle, Taluka Khatav, District Satara, Maharashtra
Agaswadi Wind Farm, Taluka Maan, District Satara, Maharashtra
Visapur Girijashankar wadi District Satara, Maharashtra [owned by Tata Power Renewable Energy Ltd. (TPREL), a wholly
owned subsidiary]
Jath, Indorama, Maharashtra (owned by TPREL)
Jamjodhpur, Sadodar, Motapanch Devda, Samana, District Jamnagar, Gujarat.
Rojmal Wind Farm, Village Rojmal, District Bhavnagar, Amreli, Gujarat
Dwarka Wind Farm, village Bhatiya , District Khambhalia, Gujarat
Hosur, Kanavi, Mulgund, Shiroland Harti, District Gadag, Karnataka.
Villages: Anikaduvu, Mongilphuluvu, Illupunagaram, Taluka Madathukulam, District Tripur, Tamil Nadu
Dalot Wind Farm, Village Raipur, Jungle, Khanpur, Talabkheda, Karaikhede, Taluka- Arnod,District- Pratapgarh, Rajasthan,
(owned by TPREL)
Dangri Wind Farm, Village Dangri, District Jaisalmer, Rajasthan
Welspun Energy Rajasthan Private Limited - Village Ola Bahala Basti Bhesada, Raigarh District, Jaisalmer, Rajasthan
Lahori Wind Farm, Village Lahori, District Shajapur, Madhya Pradesh
Report on Corporate Governance I 141
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Type of plants
Wind Farms
Solar Plants
Address of plants
100 MW Nimbagallu Wind Project, Nimbagallu villege, Uravakonda (Mandal), District Anantapur, Andhra Pradesh (owned
by TPREL)
Amakhala Emoyeni Wind Farm, Bedford -5780, Eastern Cape, South Africa
Tsitsikama (TCWF) Wind Farm, Humansdorp - 6300, Eastern Cape, South Africa
Mulshi (Khurd), Post Male, Taluka Mulshi, District Pune, Maharashtra
Palaswadi, Taluka Maan, District Satara in Maharashtra
Sastra University - TPTCL, Maharashtra
Mithapur solar plant, Plot B, Survey No. 78, Mithapur, District Jamnagar, Gujarat
Belampalli Solar Plant, Village Ankepalli and Venkapalli, Mandal Tandur, District Adilabad, Telangana (owned by TPREL)
Welspun Urja Gujarat Private Limited - Village Khirasara Taluka Anjar, District Kutch, Gujarat
Unity Power Private Limited - Village Khirasara Taluka Anjar, District Kutch, Gujarat
MI MySolar Private Limited - Village Fatehpur, Taluka Patdi, District Surendranagar, Gujarat
Dreisatz MySolar Private Limited - Village Fatehpur, Taluka Patdi, District Surendranagar, Gujarat
Viraj Renewable Energy Private Limited - Village Ghitoor, Tehsil Baap, District Phalodi, Rajasthan
Northwest Energy Private Limited - Village Ghitoor, Tehsil Baap, District Phalodi, Rajasthan
Welspun Solar AP Private Limited - Villages Shrimandrup Nagar and Rawra Tehsil Phalodi, District Jodhpur, Rajasthan
Welspun Solar UP Private Limited - Village Kolayat, Bikaner, Rajasthan
Welspun Solar Madhya Pradesh Private Limited
- Villages Bhagwanpura Diken Padaliya Taluk Jawad and Singoli, District Neemuch, Madhya Pradesh
- Villages Padaliya and Bhadhawa Taluk Singoli, District Neemuch, Madhya Pradesh
Welspun Energy Maharashtra Private Limited - MIDC Mangalwedha (G.C.) Taluka Mangalwedha, Maharashtra
Clean Sustainable Solar Energy Private Limited - Village Shirshuphal, Baramati, Pune, Maharashtra
Welspun Solar AP Private Limited - Plot 5A, 6A & 6B IDC park, APIIC, Pulivendula, Kadapa District, Andhra Pradesh
Welspun Renewables Energy Private Limited (Balpanur, Kadapa), (Vermalapudu, Ananthpur), (Rajapura, Chitradurga)
(Kodihalli, Chitradurga), (Talak, Chitradurga), (Veeriyapalayam Village, Krishnarayauram Taluk, Karur District), (Iyermalai
Vayalur Village, Krishnarayauram, Karur District), (Kaithar, Metupirancheri Village, Manur Taluk, Tiruneliveli), (Noida, U.P.),
(Bhiwadi, Rajasthan)
Welspun Solar Kannada Private Limited - Villages Nagasamudra & Heruru Taluka Molakalamuru, District Chitradurga,
Karnataka
Welspun Solar Punjab Private Limited - Villages Jagaram Tirath & Teona Pujarian, Tehsil Talwandi Sabo, Bhatinda
Welspun Solar Tech Private Limited - Musri, Trichy
Welspun Energy Jharkhand Private Limited
- Bahera, Block: Dobhi, Post Office: Barachatti Anchal, Gaya, Bihar
- Savkala & amp; Khaira Khurd, Block Amas, Post Office: Sherghati Anchal Sherghati, Gaya, Bihar
Welspun Solar Rajasthan Private Limited - Village Dhalmu, Pratapgarh, Rajasthan
Transmission
Division
Distribution
Division
Strategic
Engineering
Division
Shil Road, Netivli, Kalyan, District Thane, Maharashtra
Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra
42/43 Electronic City Electronic City Post Office, Hosur Road, Bengaluru, Karnataka
(l)
Address for correspondence:
The Tata Power Company Limited
Bombay House, 24, Homi Mody Street,
Mumbai 400 001
Tel.: 022 6665 8282 Fax: 022 6665 8801
E-mail: investorcomplaints@tatapower.com
Website: www.tatapower.com
Other Disclosures
1.
2.
There were no materially significant related party transactions during the year.
The Board has received disclosures from senior management relating to material, financial and commercial transactions where
they and/or their relatives have personal interest. There are no materially significant related party transactions which have
potential conflict with the interest of the Company at large.
142 I Report on Corporate Governance
The Tata Power Company Limited
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
There was no non-compliance during the last three years by the Company on any matter related to Capital Market. There were
no penalties imposed nor strictures passed on the Company by the Stock Exchanges, Securities and Exchange Board of India
or any statutory authority.
The Company has adopted a Whistle Blower Policy and has established the necessary vigil mechanism for employees and
Directors to report concerns about unethical behaviour, actual or suspected fraud or violation of the Company’s Code of
Conduct or Ethics policy. The said policy has been posted on the Company’s website. The Company affirms that no personnel
have been denied access to the Audit Committee of Directors.
All mandatory requirements as per Listing Regulations have been complied with by the Company. The status of compliance
with the non-mandatory requirements, as stated under Part E of Schedule-II to the Listing Regulations is as under:
•
•
The Non-Executive Chairman maintains a separate office, for which the Company is not required to reimburse expenses.
The half-yearly financial performance of the Company is sent to the Members in electronic form. The results are also put
up on the Company’s website.
The Chairman of the Board is a Non-Executive Director and his position is separate from that of the CEO & Managing Director.
The Internal Auditor reports to the Audit Committee of Directors.
•
•
The Company follows Accounting Standards issued by the Ministry of Corporate Affairs in the preparation of its financial
statements.
In terms of Regulation 17(8) of the Listing Regulations, the CEO & Managing Director and the Chief Financial Officer made a
certification to the Board of Directors in the prescribed format for the year under review, which has been reviewed by the Audit
Committee and taken on record by the Board.
Web link of (a) Policy for determining material subsidiaries and (b) Policy on dealing with related party transactions is
www.tatapower.com/aboutus/corporate-policies.aspx
Disclosure of commodity price risks and commodity hedging activities: The Company is exposed to risk from market fluctuations
of foreign exchange on coal import. Forex Risk Management Committee reviews exposures on monthly basis and decides
suitable hedging strategies. The Company is hedging its exposure by way of various hedge instrument such as Forward, Options
or combination of both.
The Company has complied with all the requirement of Corporate Governance Report as stated under sub-paras (2) to (10) of
section (C) of Schedule V to the Listing Regulations.
The Company has complied with all the requirements of corporate governance as specified in Regulation 17 to 27 and clauses
(b) to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations.
As required under Regulation 36(3) of the Listing Regulations, particulars of Directors seeking appointment/re-appointment
at the forthcoming AGM are given in the Notice of the AGM to be held on 23rd August 2017.
Other Shareholder Information:
Ø
Ø
Corporate Identity Number (CIN): L28920MH1919PLC000567
International Securities Identification Number (ISIN): INE245A01021
The Company maintains a TOLL FREE Investor Helpline (No.1800-209-8484) to give Members the convenience of one more
contact point with TSRDL, Registrar and Share Transfer Agents of the Company, for redressal of grievances/ responses to queries.
Ø
E-voting
E-voting is a common internet infrastructure that enables investors to vote electronically on resolutions of companies. Investors
can now vote on resolutions requiring voting through Postal Ballot as per the applicable rules and regulations without sending
their votes through post. The Company will also have the E-voting facility for the items to be transacted at this AGM. The MCA
has authorised NSDL and CDSL for setting up electronic platform to facilitate casting of votes in electronic form. The Company
has entered into agreements with NSDL and CDSL for availing E-voting facilities.
Ø
Shareholders’ Relations Team
The Shareholders’ Relations Team is located at the Registered Office of the Company.
Contact Person: Mr. J. E. Mahernosh Tel.: 022 6665 7508 Fax: 022 6717 1004
In compliance with Regulation 62 of the Listing Regulations, a separate e-mail ID investorcomplaints@tatapower.com has been set up
as a dedicated ID solely for the purpose of dealing with Members’ queries/complaints.
Transfer of unclaimed dividend to Investor Education and Protection Fund
Pursuant to the provisions of Sections 124 and 125 of the Act, the dividend which remains unclaimed/unpaid for a period of seven
years from the date of transfer to the unpaid dividend account is required to be transferred to the Investor Education and Protection
Fund (IEPF) established by the Central Government.
Report on Corporate Governance I 143
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
The status of dividend remaining unclaimed is given hereunder:
Table 24
Unclaimed Dividend
Status
Whether it can
be claimed
Can be claimed from
Upto and including the
Financial Year 1994-95
Transferred to
General Revenue
Account of the Central
Government
For the Financial Years
1995-96 to 2008-09
For the Financial Years
2009-10 and thereafter
Transferred to the
IEPF of the Central
Government
Lying in respective
Unpaid Dividend
Accounts
Yes
Yes
Office of the Registrar of Companies, Central Government
Office Building, A-wing, 2nd
Floor, CBD Belapur, Navi Mumbai-
400 614, Maharashtra. Application to be made in Form II
prescribed by the Companies Unpaid Dividend (Transfer to
the General Revenue Account of the Central Government)
Rules, 1978.
Pursuant to sub-section (6) of Section 124 of the Act and rule
7(1) of the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, an
application can be filed to the Authority in Form IEPF-5 for
claiming unpaid amounts and shares out of IEPF.
Yes
TSRDL, Registrars and Share Transfer Agents.
The Company sends reminders to those Members who have not claimed their dividend. The following unclaimed amounts were
transferred to IEPF during FY17:
Particulars
Unclaimed dividend with the Company
Legal outstanding cases to be retained
Unclaimed matured deposits with the Company
Interest accrued on the unpaid mature deposits
Total amount transferred during the year
Table 25
Amount (`)
1,01,66,943
(2,56,956)
0
0
99,10,976
The due dates for transfer to IEPF of the dividend remaining unclaimed since 2010-16 are provided hereunder:
Date of dividend declaration
08.09.2010
24.08.2011
17.08.2012
16.08.2013
13.08.2014
05.08.2015
21.09.2016
Unclaimed Dividend
(As on 31.03.2017)
1,11,74,736
1,29,51,663
1,37,62,364
1,41,46,304
1,75,43,598
2,00,53,627
2,56,87,292
Table 26
Last date for claiming payment
from TSRDL
10.10.2017
27.09.2018
20.09.2019
19.09.2020
15.09.2021
07.09.2022
24.10.2023
Members may visit the Company’s website www.tatapower.com (Investor Relations – Investor Helpdesk – Amounts pending transfer
to IEPF) for tracking details of any unclaimed amounts, pending transfer to IEPF. Members are requested to get in touch with TSRDL
for claiming the unclaimed dividend, if any, standing to the credit of their account.
Ø
Unclaimed Shares
With the enforcement of Section 124(6) of the Act read with Rule 6(2) of IEPF Authority (Accounting, Audit, Transfer and Refund)
Rules, 2016, every Company is mandatorily required to transfer the underlying shares (both in physical as well as demat mode),
for which the dividend has been unpaid or unclaimed for a consecutive period of seven years, to IEPF.
As per Notification dated 28th February 2017 of the Ministry of Corporate Affairs: Pursuant to second proviso to Rule 6 of said
IEPF Rules, 2016 notified on 28th February 2017, where seven year period provided under sub-section (5) of Section 124 is
completed during 7th September 2016 to 31st May 2017, the due date for transfer of such shares by companies is 31st May 2017
(due date of transfer).
144 I Report on Corporate Governance
The Tata Power Company Limited
In accordance with the requirement of said Section 124 and Regulation 39(4) read with clause B of Schedule VI to the Listing
Regulations, the Company has informed, at the latest available address, the shareholder(s) [whose shares are lying unclaimed/
undelivered with the Company (both in physical as well as demat mode) for which the dividend has been unpaid or unclaimed
for a consecutive period of seven years] concerned regarding transfer of shares three months before the said due date of transfer
of shares and also simultaneously published a notice in the leading newspaper in English and regional language having wide
circulation informing the concerned that the names of such shareholders and their folio number or DP ID - Client ID are available
on the website duly mentioning the website address.
Ø
Shares held in electronic form: Members holding shares in electronic form may please note that:
i)
ii)
For the purpose of making cash payments to the investors through Reserve Bank of India (RBI) approved electronic
mode of payment (such as ECS, NECS, NEFT, RTGS etc.), relevant bank details available with the depositories will be
used. Members are requested to update their bank details with their Depository Participant (DP).
Instructions regarding change of address, nomination and power of attorney should be given directly to the DP.
Ø
Shares held in physical form: Members holding shares in physical form are requested to notify/send the following to TSRDL
to facilitate better servicing:
i)
ii)
any change in their address/mandate/bank details, and
particulars of the bank and branch in which they wish their dividend to be credited, in case they have not been furnished
earlier.
Ø
Payment of dividend or interest or redemption or repayment
As required under Regulation 12 read with Schedule I to the Listing Regulations, companies are directed to use, either directly
or through their RTA, any RBI approved electronic clearing services (local, regional or national), direct credit, real time gross
settlement, national electronic funds transfer, etc. for making payment of dividend/interest on securities issued/redemption or
repayment amount to the investors. For investors holding shares in demat mode, relevant bank details from the depositories
will be sought. Investors holding shares in physical form, are requested to register instructions regarding their bank details with
the RTA. Only in cases where either the bank details such as Magnetic Ink Character Recognition (MICR), Indian Financial System
Code (IFSC) etc., that are required for making electronic payment, are not available or the electronic payment instructions have
failed or have been rejected by the bank, physical payment instruments for making cash payments to the Investors may be used.
Ø
Demat initiative
WHY DEMAT
•
•
•
•
•
•
•
Easy portfolio monitoring
Elimination of bad deliveries
Elimination of all risks associated with physical certificates
No stamp duty is paid on transfer of shares
Immediate transfer / trading of securities
Faster settlement cycle
Faster disbursement of non-cash corporate benefits like
Rights, Bonus etc.
•
•
•
•
•
•
Periodic status reports and information available on
internet
Ensures faster communication to investors
Ease related to change of address
Provides more acceptability and liquidity of securities
Postal delays and loss of shares in transit is prevented
Saves the shareholder from going through cumbersome
legal processes to reclaim the lost/pilfered certificates
In view of the advantages of holding shares in electronic form, Members holding their Equity Shares in physical form
are urged to demat their holdings.
Ø
Depository Services
Members may write to the respective Depository or to TSRDL for guidance on depository services. Address for correspondence
with the Depositories is as follows:
National Securities Depository Limited
Trade World, 4th Floor
Kamala Mills Compound
Senapati Bapat Marg, Lower Parel
Mumbai 400 013
Tel. No. : 022 2499 4200
Fax Nos. : 022 2497 6351
e-mail : info@nsdl.co.in
website : www.nsdl.co.in
Central Depository Services (India) Limited
Phiroze Jeejeebhoy Towers
17th Floor, Dalal Street
Mumbai 400 023
Tel. No. : 022 2272 3333
Fax Nos. : 022 2272 3199
e-mail : investor@cdslindia.com
website : www.cdslindia.com
Report on Corporate Governance I 145
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Ø
Nomination Facility
Pursuant to the provisions of Section 72 of the Act, Members are entitled to make nominations in respect of shares held by
them. Members holding shares in physical form and intending to make/change the nomination in respect of their shares in the
Company, may submit their requests in Form No. SH.13 to TSRDL. Members holding shares in electronic form are requested to
give the nomination request to their respective DPs directly.
Form No. SH.13 can be obtained from TSRDL or downloaded from the Company’s website under the section ‘Investor Relations’.
Ø
Reconciliation of Share Capital Audit
As stipulated by SEBI, a qualified Practicing Company Secretary carries out Share Capital Audit to reconcile the total admitted
capital with NSDL and CDSL and the total issued and listed capital. This audit is carried out every quarter and the report thereon
is submitted to the Stock Exchanges as well as placed before the Board of Directors. The Auditor confirms that the total listed
and paid-up capital is in agreement with the aggregate of the total number of shares in physical form and the total number
of shares in dematerialised form (held with NSDL and CDSL).
Ø
Compliance of Share Transfer Formalities
Pursuant to Regulation 40(9) of the Listing Regulations, certificates, on half-yearly basis, have been issued by a Practicing
Company Secretary for due compliance of share transfer formalities by the Company.
Ø
Secretarial Audit
In terms of the Act, the Company appointed M/s. Parikh & Associates, Practicing Company Secretaries, to conduct Secretarial
Audit of records and documents of the Company for FY2017. The Secretarial Audit Report is provided as Annexure VIII to the
Board’s Report.
Investor safeguards
In pursuit of the Company’s objective to mitigate / avoid risks while dealing with shares and related matters, the following are the
Company’s recommendations to its Members:
i)
Open Demat Account and dematerialise your shares
Members should convert their physical holdings into electronic holdings. Holding shares in electronic form helps Members to
achieve immediate transfer of shares. No stamp duty is payable on transfer of shares held in electronic form and risks associated
with physical certificates such as forged transfers, fake certificates and bad deliveries are avoided.
ii)
Consolidate your multiple folios
Members are requested to consolidate their shareholdings held under multiple folios. This facilitates one-stop tracking of all
corporate benefits on the shares and would reduce time and efforts required to monitor multiple folios.
iii)
Confidentiality of security details
Folio Nos./DP ID/Client ID should not be disclosed to any unknown persons. Signed blank transfer deeds, delivery instruction
slips should not be given to any unknown persons.
iv)
Dealing with Registered Intermediaries
Members should transact through a registered intermediary, who is subject to the regulatory discipline of SEBI, as it will be
responsible for its activities, and in case the intermediary does not act professionally, Members can take up the matter with
SEBI.
v)
Obtain documents relating to purchase and sale of securities
A valid Contract Note/Confirmation Memo should be obtained from the broker/sub-broker, within 24 hours of execution of
the trade. It should be ensured that the Contract Note/Confirmation Memo contains order no., trade no., trade time, quantity,
price and brokerage.
vi)
Update your address
To receive all communications and corporate actions promptly, please update your address with the Company or DP, as the
case may be.
vii)
Prevention of frauds
There is a possibility of fraudulent transactions relating to folios which lie dormant, where the Member is either deceased or
has gone abroad. Hence, we urge you to exercise diligence and notify the Company of any change in address, stay abroad or
demise of any Member, as and when required.
146 I Report on Corporate Governance
The Tata Power Company Limited
viii) Monitor holdings regularly
Do not leave your demat account dormant for long. Periodic statement of holdings should be obtained from the concerned
DPs and holdings should be verified.
ix)
PAN requirement for transfer of shares in Physical Form
SEBI has mandated the submission of Permanent Account Number (PAN) for securities market transactions and off market/ private
transactions involving transfer of shares of listed companies in physical form. It is, therefore, mandatory for any transferee(s)
to furnish a copy of the PAN card to TSRDL for registration of such transfers. Members are, therefore, requested to make note
of the same and submit their PAN card copy to TSRDL.
x)
Mode of Postage
Share certificates and high value dividend warrants/cheques/demand drafts should not be sent by ordinary post. It is
recommended that Members should send such instruments by registered post or courier.
As required by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, I affirm
that the Board Members and the Senior Management Personnel have confirmed compliance with the Codes of Conduct, as applicable
to them, for the year ended 31st March 2017.
DECLARATION
Mumbai, 19th May 2017
For The Tata Power Company Limited
Anil Sardana
CEO & Managing Director
Report on Corporate Governance I 147
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
INDEPENDENT AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE
TO THE MEMBERS OF
THE TATA POWER COMPANY LIMITED
1.
We, Deloitte Haskins & Sells LLP, Chartered Accountants, the Statutory Auditors of The Tata Power Company Limited (“the
Company”), have examined the compliance of conditions of Corporate Governance by the Company, for the year ended on
31 March 2017, as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of
the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations).
Managements’ Responsibility
2.
The compliance of conditions of Corporate Governance is the responsibility of the Management. This responsibility includes
the design, implementation and maintenance of internal control and procedures to ensure the compliance with the conditions
of the Corporate Governance stipulated in Listing Regulations.
Auditor’s Responsibility
3.
4.
5.
Our responsibility is limited to examining the procedures and implementation thereof, adopted by the Company for ensuring
compliance with the conditions of the Corporate Governance. It is neither an audit nor an expression of opinion on the financial
statements of the Company.
We have examined the books of account and other relevant records and documents maintained by the Company for the
purposes of providing reasonable assurance on the compliance with Corporate Governance requirements by the Company.
We have carried out an examination of the relevant records of the Company in accordance with the Guidance Note on Certification
of Corporate Governance issued by the Institute of the Chartered Accountants of India (the ICAI), the Standards on Auditing
specified under Section 143(10) of the Companies Act 2013, in so far as applicable for the purpose of this certificate and as per
the Guidance Note on Reports or Certificates for Special Purposes issued by the ICAI which requires that we comply with the
ethical requirements of the Code of Ethics issued by the ICAI.
6.
We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms
that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.
Opinion
7.
8.
Based on our examination of the relevant records and according to the information and explanations provided to us and the
representations provided by the Management, we certify that the Company has complied with the conditions of Corporate
Governance as stipulated in regulations 17 to 27 and clauses (b) to (i) of regulation 46(2) and para C and D of Schedule V of the
SEBI Listing Regulations during the year ended March 31, 2017.
We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency or effectiveness
with which the Management has conducted the affairs of the Company.
For Deloitte Haskins & Sells LLP
Chartered Accountants
(Firm‘s Registration No. 117366W / W-100018)
Udayan Sen
Partner
(Membership No. 31220)
Mumbai, 19 May, 2017
148 I Report on Corporate Governance
The Tata Power Company Limited BUSINESS
RESPONSIBILITY
REPORT
Thermal Power Plant, MPL Maithon, Jharkhand
Introduction
BUSINESS RESPONSIBILITY REPORT
The Tata Power Company Limited (Tata Power), India’s largest integrated player and private power producer, accomplished over a 100
years of operations with its consistent focus on responsible growth. The Company is a pioneer in leadership in technology adoption
and care towards all its stakeholders. The major businesses of the Company are in Generation, Transmission, Distribution-cum-Retail,
Power Trading, Power Services, Coal Mines and Logistics, Strategic Engineering for defence applications, Solar Photo-voltaic (PV)
manufacturing and associated project management services (Engineering, Procurement, and Construction). As of 31st March 2017, the
Company had an installed generation capacity of 10,613 MW based on various fuel sources - Thermal (Coal, Gas and Oil), Hydroelectric
Power, Renewable Energy (Wind and Solar PV) and Waste Heat Recovery. The Company (including its subsidiaries) had 29.70% of its
capacity [in Megawatt (MW) terms] in clean and green sources (Hydro, Wind, Solar and Waste Heat Recovery).
The Company embodies the Tata Group’s philosophy of building a strong sustainable business that is firmly rooted in the concept of
Leadership with Care. Tata Power has instituted ‘Care’ as one of the core values which entrust Care for Environment, Care for Community,
Care for Customer, and Care for People, i.e. employees, shareholders, suppliers, partners, etc. in its Sustainability Model. The aim is to
strengthen structures and processes for environmental performance, stronger engagement with community, customers and employees,
by using enablers like new technology, benchmarking and going beyond compliance in key operational parameters.
Leadership and Oversight on
Sustainability
Advocacy
Conforming
to high ethical
standards
The Objective
Leadership with Care
The Enablers
Institutional Structures
and Systems
Providing sustainable returns to all our
key economic stakeholders
The Eliment
Care for our Environment (society at large)
Environment
Conservation
Efficient Use of
Energy
Investment in
Green tech
Care for our
shareholders and
customers
Care for our
Community
Care for our
people
Initiatives
that are
based on, and
encompassing
What needs to be done (material to both stakeholders and us)
What we are good at doing / is linked to our business
What we should take up as national thrust areas for development
What we should define as our stds: from compliance to competing to leading
Providing sustainable returns to all our
key economic stakeholders
New
Technology
Benchmarking, Going
beyond compliance
Architecture
of care
The Enablers
Fig. Tata Power Sustainability Model
The vision of the Company is “To be the most admired and responsible Integrated Power Company with international footprint,
delivering sustainable value to all stakeholders.” The Company’s vision is supported by the strong governance which has considered
SACRED values for Tata Power:
•
•
•
•
•
Safety - Safety is a core value over which no business objective can have a higher priority.
Agility - Speed, Responsiveness and being Proactive, achieved through Collaboration and Empowering Employees.
Care - Care for Stakeholders - Environment, Customers and Shareholders – both existing and potential, Community and People
(employees and partners).
Respect - Treat all stakeholders with respect and dignity.
Ethics - Achieve the most admired standards of ethics, through integrity and mutual trust.
150 I Business Responsibility Report
The Tata Power Company Limited •
Diligence - Do everything (set direction, deploy actions, analyze, review, plan and mitigate risks etc.) with a thoroughness that
delivers quality and excellence in all areas, and especially in operations, execution and growth.
The compliance to statutory requirements is of utmost importance at Tata Power and this Business Responsibility Report (BRR) is
one of the examples of being a responsible Company. Tata Power was recognised by the coveted CII-ITC Sustainability Awards for its
significant achievement on Biodiversity and Corporate Social Responsibility (CSR).
Section A: General Information about the Company
1. Corporate Identity Number (CIN) of the Company L28920MH1919PLC000567
2. Name of the Company
3. Registered address
4. Website
5. E-mail id.
6. Financial Year reported
The Tata Power Company Limited
Bombay House, 24, Homi Mody Street, Mumbai – 400 001
www.tatapower.com
sustainability.reporting@tatapower.com
2016-17
7.
Sector(s) that the Company is engaged in (industrial activity code-wise)
ITC code
NA
NA
NA
Description
Power
Electronic Products
Technical Services
8.
List three key products/services that the Company manufactures/provides (as in the Balance Sheet)
•
•
•
Generation, Transmission and Distribution of Electricity
Electronic Products
Technical Services
9.
Total number of locations where business activity is undertaken by the Company
i.
ii.
Number of International Locations (details of major 5): South Africa, Singapore, Georgia, Zambia and Vietnam.
Number of National Locations: Tata Power has 101 locations. The operational status as on 31st March 2017 is given below:
State
Maharashtra
Jharkhand
Delhi
Gujarat
Karnataka
Tamil Nadu
West Bengal
Rajasthan
Odisha
Madhya
Pradesh
Andhra
Pradesh
Bihar
Haryana
Punjab
Telangana
Uttar Pradesh
No. of Project
Locations
21
2
18
21
6
7
1
8
1
3
6
2
1
2
1
1
Hydro
Wind
Solar
Thermal
Transmission Distribution
3
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9
-
-
15
1
1
-
4
-
1
3
-
-
-
-
-
6
15
5
5
6
-
4
-
2
3
2
1
2
1
1
1
2
1
1
-
-
1
1
-
-
-
-
-
-
-
1
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
1
-
1
-
-
-
-
-
-
-
-
-
-
-
-
-
Business Responsibility Report I 151
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 10. Markets served by the Company- Local/ State/ National/ International
The markets served by Tata Power are listed below:
Local/ State/ National
International (major 5)
Delhi License Area
Gujarat
Haryana
Himachal Pradesh
Jharkhand (Jamshedpur Circle) Rajasthan
Andhra Pradesh
Karnataka
Maharashtra
Mumbai License Area
Punjab
Bihar
Tamil Nadu
West Bengal
Odisha
Madhya Pradesh
Telangana
Section B: Financial Details of the Company
Paid up Capital
Total Turnover (Standalone)
Total Profit After Taxes (Standalone)
Total Spending on CSR as percentage of Profit After Tax (%)
List of activities in which expenditure in the above has been incurred
South Africa
Singapore
Georgia
Zambia
Vietnam
₹ 270.48 crore
₹ 7282 crore
₹ 283 crore
2%
The CSR activities are carried out by Community Relations (CR) department under the five thrust areas. The CSR Committee
proposes the expenditure to be incurred on the CSR programs. The percentage spend thrust area wise is given below:
Thrust Areas
Augmenting Primary Education System with focus on Girl Child (VIDYA)
Building and Strengthening Healthcare facilities including Safe drinking water (AROGYA/SWATCH JAL)
Enhancing Programs and Livelihood and Employability (SAMRIDDHI & DAKSH)
Building Social Capital and Infrastructure (SANRACHNA)
Nurturing Sustainability for Inclusive Growth (AKSHAY)
% spent
11.85
13.47
29.34
9.75
35.59
Section C: Other Details
1.
Does the Company have any subsidiary company/companies?
Tata Power has 52 subsidiaries as on 31st March 2017
2.
Do the subsidiary company/companies participate in the Business Responsibility (BR) Initiatives of the parent company?
If yes, then indicate the number of such subsidiary company(s).
The subsidiaries have their own BR plans which are influenced by Tata Power. Tata Power encourages its subsidiary companies to
participate in group wide sustainability initiatives. All subsidiaries are aligned to the CSR Policy and CSR Strategy and implement
activities under the five thrust areas.
3.
Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with participate in the
BR initiatives of the Company? If yes, then indicate the percentage of such entity/entities? (Less than 30%, 30-60%,
More than 60%).
Tata Power collaborates with all relevant stakeholders for sustainability initiatives. The suppliers/ vendors are sensitized on
sustainability with the help of Responsible Supply Chain Management (RSCM) Policy which covers areas like Health & Safety,
Environment, Human Rights and Ethics & Compliance. The suppliers/ vendors are required to ensure conformance to the RSCM
parameters in addition to Tata Code of Conduct (TCoC).
SECTION D – BR Information
1.
Details of Director/ Directors responsible for BR:
a.
Details of the Director/Directors responsible for implementation of the BR policy/policies:
1.
2.
DIN
Name
Designation
DIN
Name
Designation
00006867
Mr. Anil Sardana
CEO & Managing Director
01741911
Mr. Ashok S. Sethi
COO & Executive Director
152 I Business Responsibility Report
The Tata Power Company Limited
b.
Details of BR Head:
DIN
Name
Designation
Phone Number
E-mail id.
0007605819
Mr. Vivek Talwar
Chief Sustainability Officer
022 6717 1507
vivektalwar@tatapower.com
2.
Principle-wise (as per NVGs) BR Policy/Policies (Reply in Y/N)
The National Voluntary Guidelines (NVG) on Social, Environmental and Economic Responsibilities of Business released by the
Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These are briefly given as follows:
P1
P2
P3
P4
P5
P6
P7
P8
P9
Business should conduct and govern themselves with Ethics, Transparency and Accountability
Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle
Businesses should promote the wellbeing of all employees
Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are
disadvantaged, vulnerable and marginalised
Businesses should respect and promote human rights
Business should respect, protect, and make efforts to restore the environment
Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner
Businesses should support inclusive growth and equitable development
Businesses should engage with and provide value to their customers and consumers in a responsible manner
Questions
Do you have policy/policies for…
Has the policy being formulated in consultation with
the relevant stakeholders?
Does the policy conform to any national international
standards? If yes, specify?
Has the policy being approved by the Board? If yes,
has it been signed by MD/ Owner/CEO/ appropriate
Board Director?
Does the Company has a specified committee
of the Board/Director/Official to oversee the
implementation of the policy?
P1
Y
Y
P2
Y
Y
P3
Y
Y
P4
Y
Y
P5
Y
Y
P6
Y
Y
P7
Y
Y
P8
Y
Y
P9
Y
Y
Y
Y
Y
Y
Y
Y
Tata Power policies are based on the NVG principles and also confirm to
the international standards like ISO 9000, ISO 14000, OHSAS 18000, UNGC
principles, ILO principles and Sustainable Development Goals (SDGs).
The policies have been developed as per the need and are duly signed
by the CEO & Managing Director.
Y
Y
Y
The policies at Tata Power strengthen internal governance structures on
compliance and beyond compliance efforts. All the policies are mapped
to the respective business functions and their implementation is based
on the commitment framework. The Company has set various processes
to monitor the effectiveness of these policies.
Indicate the link for the policy to be viewed online? www.tatapower.com/aboutus/corporate-policies.aspx
Has the policy been formally communicated to all
relevant internal and external stakeholders?
Does the Company have in-house structure to
implement the policy/ policies?
Does the Company have a grievance redressal
mechanism related to the policy/policies to address
stakeholders’ grievances related to the policy/
policies?
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Y
Has the Company carried out independent audit/
evaluation of the working of this policy by an internal
or external agency?
Yes, a cross functional review mechanism is in place for reviewing the
policies and their implementation based on the commitment framework.
Periodic evaluation of all policies is carried out and related risk controls
are set in place.
Business Responsibility Report I 153
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 2a.
If answer to S. No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options)
S.No.
1.
2.
3.
4.
5.
6.
Questions
The Company has not understood the Principles
The Company is not at a stage where it finds itself
in a position to formulate and implement the
policies on specified principles
The Company does not have financial or manpower
resources available for the task
It is planned to be done within next 6 months
It is planned to be done within the next 1 year
Any other reason (please specify)
3.
Governance related to BR
P1
P2
P3
P4
P5
P6
P7
P8
P9
Tata Power policies were developed based on requirement and
aim to strengthen governance structure management system,
and overall sustainability of the Company.
Indicate the frequency with which the Board of Directors, Committee of the Board or CEO to assess the BR performance
of the Company (within 3 months, 3-6 months, annually, more than 1 year).
Tata Power’s sustainability performance has been a Board level agenda and the same is monitored by the CSR Committee
and Sustainability Advisory Council (SAC). The CSR Committee recommends the activities to be undertaken by the Company
as specified in Schedule VII to the Companies Act, 2013 (the Act) and the Rules prescribed under the Act. SAC comprises of
Tata Power’s Senior Management, Board Member(s), and external national and international members of civil society who are
experts in the fields of environmental protection, biodiversity conservation, climate change and community relations. CEO &
MD of the Company is the Chairman of SAC. The SAC’s role is to challenge the organisation’s strategies on sustainability issues
and also guide Tata Power to formulate improved approaches. The frequency of CSR Committee and SAC meetings is quarterly
and the management enacts on the inputs provided by them.
Board
SAC
Corporate
Sustainability Committee
Divisional Sustainability
Committees (Members: Heads of
O&M, HR, IR, CSR, Environment,
Safety, Legal and Security)
Fig. Sustainability governance structure
Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it
is published?
Yes, Tata Power publishes Sustainability Report in accordance with Global Reporting Initiative (GRI) annually. This recent Sustainability
Report is based on the GRI G4 Guideline, which can be viewed at www.tatapower.com/sustainability/sustainability-communications.aspx.
Section E: Principle-wise performance
Principle 1
1.
Does the policy relating to ethics, bribery and corruption cover only the Company? Yes/No. Does it extend to the Group/
Joint Ventures/Suppliers/ Contractors/ NGOs/Others?
Being a Tata Group Company, Tata Power abides by the TCoC which was first formally articulated in 1998, refreshed in 2015
and unveiled by the Group Chairman on 29th July 2015 for adoption by the Group companies. The TCoC is a comprehensive
154 I Business Responsibility Report
The Tata Power Company Limited document with an ethical road map for Tata employees, companies, including third parties representing/dealing with Tata Power,
thus covering 100% of its operations through trainings and modules. TCoC consists of 10 sections and 59 sub-clauses, that
cover Financial Reporting, National Interests, Political Non-Alignment, Health, Safety and Environment, Corporate Citizenship,
Ethical Conduct and Anti-Corruption.
2.
How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily
resolved by the management?
Stakeholder
Received in FY 16-17
Satisfactorily resolved by the management (%)
Employees
Vendors
Investors
Society
Principle 2
45
08
21
03
100
88
76
100
1.
List up to 3 of your products or services whose design has incorporated social or environmental concerns, risks and/or
opportunities:
Tata Power is in the business of Generation, Transmission and Distribution of electricity. The element of ‘Care’ is embedded for
environment, shareholders, community, and people including employees, partners and suppliers.
Generation: At all generating stations, Safety, Occupational Health of the employees (permanent/ contract) is considered
important. Tata Power’s Strategic Intent 2025 has considered achieving 30-40% generation portfolio from non- fossil sources
to reduce impact on the environment. Further, all thermal stations of Tata Power are IMS compliant.
Transmission: Tata Power conducts “Ghar Ghar Me Jan Jagruti Abhiyan” to create safety awareness amongst people staying
below the overhead lines. Employees visit different locations under high voltage transmission lines and create safety awareness
among the community at large. Also, NGO has been involved for conducting “Jan Jagruti Campaign” which includes street plays
and interaction with women’s group and youth. Intensified Jan Jagruti is conducted during “Sankranti Festival Season” and
“Roof Repair Season”. As part of World Environment Day celebrations, under tree plantation drive, total 630 tree saplings were
planted at various locations of transmission.
Distribution: Various initiatives like safety audits and mock drills in consumer premises, Club Enerji, Demand Side Management
Programs, Be Green create awareness to customers on energy efficiency and its conservation, safety, carbon footprint etc.
200 saplings were distributed to consumers visiting CRCs on the occasion of World Environment Day.
Practice of using solar powered warning lights introduced for excavation barricades which has stopped usage of DG sets which
ware being used for lighting of small lamps all along the barricades, avoiding noise pollution in surrounding areas.
2.
For each such product, provide the following details in respect of resource use (energy, water, raw material etc.) per
unit of product (optional):
i.
Reduction during sourcing/production/distribution achieved since the previous year throughout the value
chain?
There are various initiatives such as ash utilization, reduction of specific water consumption and auxiliary power
consumption, zero discharge, rain water harvesting, energy conservation, utilization of scrap etc. The Company has
achieved substantial reduction in water as well as auxiliary power consumption compared to previous year at some
locations. At Tata Power, energy efficiency is a way of managing and limiting the increase in energy consumption. As
a utility Company, the operations are more energy efficient if they generate more units for the same energy input, or
maintain the quantity of units generated for less energy input. The energy consumption arises from the consumption
of fuel for generation (direct consumption).
ii.
Reduction during usage by consumers (energy, water) has been achieved since the previous year?
The Company has developed programmes for different types of consumers. For residential consumers in Mumbai, we
have launched a unique consumer initiative called “Be Green”. This initiative gave an opportunity to the Company’s
consumers to exchange their inefficient electrical appliances for 5 star energy efficient appliances at a discounted
price. This initiative helps to reduce consumers’ energy cost by 30% to 50% without compromising on their comfort
and convenience. The Company has partnered with leading consumer appliance manufacturers for energy efficient
equipment. The Company has encouraged consumers to opt for paperless e-billing in FY17. Total 17,764 consumers
are availing e-billing facility.
Business Responsibility Report I 155
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
The Company also facilitated the implementation of national level Domestic Efficient Lighting Program (DELP) / UJALA
Program in Mumbai. The DELP/UJALA Program has witnessed the distribution of more than 1.1 lakh LED bulbs for Tata
Power consumers in Mumbai during FY 2016-17.
Additionally, the Company carried out energy audits for industrial and commercial consumers. The experts mapped
their unique power consumption pattern and offered specific recommendations to improve the process and equipment
efficiency. Tata Power Club Enerji is spearheaded with the involvement of school children. Club Enerji has reached
500 schools across India, sensitized more than 15.81 million citizens and saved more than 20.89 million units till date.
This saving is equivalent to saving 20,263 tons of CO2. 1,526 Mini Clubs are formed all over India under the Club Enerji
initiative.
3.
Does the Company have procedures in place for sustainable sourcing (including transportation)? If yes, what percentage
of your inputs was sourced sustainably?
Yes, the Company promotes environmental harmony (including compliance to statutory requirement and stringent emission
related performance guarantees), safety, human rights and ethics, apart from the economic considerations as part of the sourcing
procedure. The procurement process during bid evaluation gives due weightage to various parameters for sustainable sourcing.
Conformance to labour principles and related laws are mandatory qualification requirements for all supply and services. The
performance for supply and services are evaluated along with the work methodology and standards as part of technical
evaluation of the bidders. In addition to engaging local workforce and community development which is part of project
development commitments, Tata Power as part of national skill/ capacity development programme, trains local youth in
various trades/skill sets including entrepreneurship though Tata Power Skill Development Institute (TPSDI) training centres
for enhancing employability.
Safety evaluation and qualification has been made an integral part of the award process and a part of online vendor registration
process. With go-live of ‘Ariba’, the Company has taken step towards 100% digitisation of its sourcing processes to make its
transparent processes stronger.
4.
Has the Company taken any steps to procure goods and services from local & small producers, including communities
surrounding their place of work? If yes, what steps have been taken to improve their capacity and capability of local
and small vendors?
Yes, the Company takes initiative to procure local goods and services. Also, the community surrounding plant sites are employed
in the plant through contractors under different categories depending on their skill set, ensuring employment and development
of communities around the plant sites. The contractor workforce are being trained under the TPSDI initiatives/ programmes
to develop / upgrade the skills of workforce to ensure safe and efficient work practices. Thus, the Company contributes to
capability building of the contractors as well as it can be ensured that the workforce is adequately trained to safely perform
the job efficiently with higher productivity and quality standards.
The Company operates full-fledged, well equipped TPSDI centres pan India so that skill development/ capacity building can
be progressed over a period of time.
Representative from Corporate Contracts Department of the Company has been identified as single point of contact at the
corporate level, as well as at Division/Site level (Procurement Heads at Division) to facilitate development of Affirmative Action
(SC/ST) vendors. Tata Power has recently formulated the ‘Affirmative Action (AA) process for Vendor Enlistment and Ordering’
to encourage and evolve entrepreneurship skill among SC/ST communities, so as to be a part of our business associates. It also
make them compete against the backdrop of so far established and proven sources through a price preference of 5% over the L1
bidder and also gives incentive of 1% of contract value for engaging workforce from AA community. Tata Power also promotes
entrepreneurship at community level by supporting enterprise development by SC/ST community. It also supports Self-Help
Group (SHG) members to start income generation activities and supports farmers, to make the community members self-reliant.
Payment terms for MSME (Micro, Small & Medium Enterprises) vendors have been given favourable payment terms to improve
their cash flow and financial positions.
The Company has procured goods and services worth ` 27.70 crore business with 83 SC/ST vendors during the current financial
year as against ` 17.65 crore business with 36 SC/ST vendors in last financial year.
5.
Does the Company have a mechanism to recycle products and waste? If yes what is the percentage of recycling of
products and waste (separately as <5%, 5-10%, >10%). Also, provide details thereof, in about 50 words or so.
Yes, the ash generated from thermal power stations is the major waste. Tata Power’s endeavour is to utilize 100% Fly Ash at all
locations and initiatives are in place to utilize the bottom ash as well. The waste/used oil which comes under the hazardous
waste category and e-waste is disposed off through authorized recyclers. Other wastes such as steel, wood are reused internally.
156 I Business Responsibility Report
The Tata Power Company Limited
Principle 3
As on 31st March 2017
1. Please indicate the total number of employees
2. Please indicate the total number of employees hired
on temporary/contractual/casual basis
3. Please indicate the number of permanent women
3136
733 (there is a footfall of 11,989 contractor employees for assigned
jobs)
290
employees
4. Please indicate the number of permanent employees
4 employees (2 officers + 2 staff )
with disabilities
5. Do you have an employee association that is
Yes, Employee Union (recognized by the management)
recognized by management?
6. What percentage of your permanent employees is
members of this recognized employee association?
30% are union employees (949) out of 3136 of the total permanent
employees of Tata Power.
7.
Please indicate the number of complaints relating to child labour, forced labour, involuntary labour, sexual harassment
in the last financial year and pending, as on the end of the financial year.
Category
Child labour/ forced labour/ involuntary labour
Sexual harassment
Discriminatory employment
No. of complaints filed during the
financial year
0
1
0
No. of complaints pending as on
end of the financial year
0
0
0
8.
What safety & skill up-gradation training was provided in the last year?
Permanent employees (includes women employees and employees with disabilities)
Safety Induction Training
Safety Capability Training
Technical Training
Casual/Temporary/Contractual Employees
Safety Induction Training
Safety Capability Training
7,857 Manhours
17,176 Manhours
Nil
1,37,655 Manhours
2,08,534 Manhours
Principle 4
1.
Has the Company mapped its internal and external stakeholders?
Yes, Tata Power conducted a comprehensive Stakeholder Engagement Exercise in 2015 which mapped internal and external
stakeholders in a structured manner. The Company is carrying out engagements with investors, employees, customers, suppliers,
community etc. with a periodic frequency.
2.
Out of the above, has the Company identified the disadvantaged, vulnerable & marginalized stakeholders?
The Company has identified SC/ST communities under its AA Policy across all its neighbourhood and beyond. Besides this, the
Company is also working with women and marginalized children with a purpose of mainstreaming them.
3.
Are there any special initiatives taken by the Company to engage with the disadvantaged, vulnerable and marginalized
stakeholders?
Tata Power works with the marginalized and disadvantaged communities which include tribal villages, vulnerable children who
are in great need of care, protection & improvement in quality of life. The initiatives focus on 5Es - Education, Employability,
Employment, Entrepreneurship & Essential Amenities. The initiatives are in addition to the initiatives under the 5 thrust areas
of CR program. Some major AA Program details are given below;
•
•
•
•
Supported 50 families from SC/ST category to set up poultry farms as a livelihood model. Each family has got permanent
poultry structure of 200 sq. ft. in size with 500 days old birds. Spent ` 27 lakh in Maval and Jawhar Program in phase
one. Target is to increase income from ` 8,000 to ` 10,000 per month of each family and generate market linkage for
ensure sustainable improvement in poultry initiative.
Supported 1,553 SC/ST farmers in developing demonstration plots, improved variety of seeds, advanced technology
and integrated watershed management practices.
Promoting women empowerment through Self Help Group (SHG) formation and building their capacities through fund
generation and collective livelihood models. 1,052 women are linked with SHG in all our locations.
2,712 SC/ST youths have been covered under employability through employability initiatives like ITI and TPSDI. 3 out
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•
•
•
•
of 4 students who got trained in TPSDI, got placed in Ambernath and currently, earning ` 8,000 to ` 10,000 per month.
20,397 SC/ST students got benefited through education related interventions like smart class, computer education,
e- learning, setting up libraries, Shiksha Saarthi, parent engagements etc.
Sponsoring high performing students through scholarships like Foundation for Academic Excellence and Access (FAEA)
at Tata group level for Xth and XIIth standard students. Supporting Kalinganagar Institute of Social Science (KISS) School
who is catering educational services to 25000 Tribal School by providing school furniture of ` 30 lakh.
Extra coaching classes, spoken english, sports promotion programs are conducted in schools to improve interpersonal
skills and personality of the students.
Water, sanitation and hygiene issues are getting addressed to make Open Defecation Free (ODF) villages as a part of
Swachha Bharat Abhiyan by sensitizing through Community Lead Total Sanitation (CLTS) campaigns.
Apart from the above, the Company also undertakes several initiatives to engage with other disadvantaged areas of
the Country as under:
Health: Integrated health approach with emphasis on tie up with government facilities, also giving importance to
major health initiatives through prevention and sensitization on water related programs.
Education: Learning level shows positive trends amongst children in the primary schools with special focus on remedial
classes, e-learning and teacher training. 500 schools were covered through various educational initiatives impacting
60,000 students.
Women Empowerment: SHG took a step forward in supporting each other during crisis by providing small loans facility
at 1% per month as against 5% by landlords. ` 76 lakh as internal lending were raised.
Principle 5
1.
Does the policy of the Company on human rights cover only the Company or extend to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/Others?
Tata Power respects Human Rights and has developed a dedicated Policy on Human Rights. This policy is aligned with the UN
Human Rights Declaration, International Labour Organisation (ILO), fundamental conventions and other fundamental labour
principles. Through the policy, Tata Power ensure conformance to fundamental labour principles including the prohibition of
child labour, forced labour, freedom of association and protection from discrimination in all its operations by imparting relevant
training and aligning the conduct of its employees.
2.
How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily
resolved by the management?
No complaints on Human Rights were received during FY17.
Principle 6
1.
Does the policy related to Principle 6 cover only the Company or extends to the Group/Joint Ventures/Suppliers/
Contractors/NGOs/others.
Tata Power has a dedicated Environment Policy along with Policies on Energy Conservation, Sustainability, E-waste Management
etc. These policies aim to achieve business excellence in environment protection, occupational health and safety. The
Environment Policy encourages the Company to conserve resources, reduce environmental impact and seeks to enhance the
awareness among employees and make business decision aiding sustainability. The division/joint ventures have developed
their own policies by taking essence from the Company policy. However, the policy on RSCM has environment protection as
one of its criteria applicable to all its vendors, contractors and service providers.
2.
Does the Company have strategies/initiatives to address global environmental issues such as climate change, global
warming, etc? Y/N. If yes, please give hyperlink for webpage etc.
Yes, as a responsible Company, Tata Power addresses global long term challenges such as climate change and diminishing
resources in a socially, ecologically and economically responsible manner. As per the Company’s strategic intent, Tata Power
aims to generate 30-40% of its generating capacity from non-fossil sources like hydro, solar, wind, waste heat recovery etc.
Hyperlink for the Company webpage is www.tatapower.com/sustainability/communication.aspx
3.
Does the Company identify and assess potential environmental risks?
Yes, environment risks are identified in the risk matrix and discussed in the annual review meeting of the Audit Committee of
Directors. Once risks are identified, steps are taken to measure and mitigate these risks through the management system approach.
4.
Does the Company have any project related to Clean Development Mechanism? If so, provide details thereof, in about
50 words or so. Also, if yes, whether any environmental compliance report is filed?
Yes, the Company has Clean Development Mechanism (CDM) projects registered with United Nations Framework Convention
on Climate Change (UNFCCC). Tata Power currently has five of its renewable projects registered under the CDM program by
UNFCCC. These projects include Wind Projects at Gadag, Karnataka, Khandke, Maharashtra, Samana and NewGen Saurashtra
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The Tata Power Company Limited
in Gujarat. The Company also has Mithapur Solar Project registered under CDM. In FY 2016-17, volume of 2,34,650 Carbon
Credits (CERs) were traded from these projects collectively. The gross revenue generated from such sale is ` 10.90 crore.
5.
Has the Company undertaken any other initiatives on clean technology, energy efficiency, renewable energy, etc. Y/N.
If yes, please give hyperlink for web page etc.
Tata Power has a specific policy, timelines and targets for adoption of renewable energy and deployment of cleaner technologies.
The Company’s mission “Being the Lead Adopter of Technology with a spirit of pioneering and calculated risk taking” enables
adoption of advanced / disruptive technologies as well as develop some products and technological processes (value added
fly ash products, blending of coal, network management / restoration techniques in T&D etc.) through a structured short /
medium & long term technological roadmap.
The Company has a dedicated group Clean Tech & Applied Research to develop value added products from the solid waste i.e.
ash which is generated from the thermal power plants. Some of the examples include demonstration of geo polymer cement
with liquid additive (laid road), fly ash based cement paint (demo), introduction of liners for hywa (eliminate contamination
between fly ash and coal), making bricks, plaster from bottom ash and using fly ash in ultrathin white topping roads and
replacement of sand by bottom ash. The Company has increased the efficiencies of solar photovoltaic panels (13% to 16.8%),
efficiency improvement initiatives in Renewable Energy (RE) like reactive power compensation, auxiliary consumption reduction,
identification of defective modules through electroluminescence test & thermo-vision scanning, low cost hybrid ultra-capacitor
(IISc), a multi fuel 5 KW CHP system (indigenisation cum development in progress) and also doing cutting edge research with the
involvement of internal R&D Unit for power electronics to a full scale research and manufacturing hub in Bangalore, dedicated
to the defense sector. A beginning in software development has been made for usage of drone in condition monitoring of
hydro rock mass, stock pile measurement & transmission line tower. Hyperlink for the Company webpage is www.tatapower.
com/sustainability/new-technologies.aspx
6.
Are the emissions/wastes generated by the Company within the permissible limits given by CPCB/SPCB for the financial
year being reported?
Yes, Tata Power is in compliance with the prescribed permissible limits as per Central Pollution Control Board (CPCB) /State
Pollution Control Board (SPCB) for air emissions, effluent quality and discharge, solid and hazardous waste generation and
disposal. Compliance reports/statements are submitted to SPCB as well as Regional Office of Ministry of Environment, Forest
& Climate Change (MoEF&CC) regularly, as applicable.
7.
Number of show cause/legal notices received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as
on end of Financial Year.
Tata Power had received one notice (For Mundra - CGPL plant) which has been resolved. There are no show cause / legal notices
received from CPCB/SPCB which are pending (i.e. not resolved to satisfaction) as on 31st March 2017.
Principle 7
1.
Is your Company a member of any trade and chamber or association? If Yes, name only those major ones that your
business deals with.
The Company is member of various trade and chamber associations. The major ones are:
•
•
•
•
Confederation of India Industries (CII)
Association of Power Producers (APP)
Indian Electrical and Electronics Manufacturers’ Association (IEEMA)
Indian Merchant Chamber (IMC)
2.
Have you advocated/lobbied through above associations for the advancement or improvement of public good? Yes/No;
if yes specify the broad areas (drop box: Governance and Administration, Economic Reforms, Inclusive Development
Policies, Energy Security, Water, Food Security, Sustainable Business Principles, others).
Tata Power doesn’t engage in any form of lobbying activities. Advocacy Policy is in place to enhance competitiveness,
effectiveness and positively contribute to the development of the power sector. The broad areas under the purview of Advocacy
Policy are, Energy Security, Governance and Administration, Enhancing Competition and Transparency in power sector, structural
changes for facilitating capacity addition, overcoming coal related challenges, electricity distribution reforms and promotion
of renewable energy.
Principle 8
1.
Does the Company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes
details thereof.
There are programs aimed at providing inclusive growth opportunities. The fly ash brick making units, established in Jojobera,
and garment making units, established at Hydros, have incorporated both effective use of fly ash into value proposition creating
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98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
economic benefit to the community at large. The market linkage establishment has further led to improved confidence among
community, who are now the Agents of Change.
2.
Are the programs/ projects undertaken through in-house team/ own foundation/ external NGO/ government structures/
any other organisation?
Tata Power has a CR division dedicated for CSR activities at the corporate level and at each station level dedicated CR teams
are in place to plan, implement and monitor and review various community development initiatives/programs. Further, Tata
Power Community Development Trust (TPCDT), a registered trust, implements projects related to energy and water. Tata Power
partners with NGOs and Government Organizations to leverage synergies in delivering community development initiatives.
Encouragement is given to employees to volunteer for cause of choice in pre-defined aspects that are aligned to community
development initiatives.
3.
Have you done any impact assessment of your initiative?
The Company has developed a scientific process of measuring social performance using Community Engagement Index at
location level. Besides this, flagship programs effectiveness is also measured along with Social Return on Investments which
was undertaken for first time this year.
4.
5.
What is your Company’s direct contribution to community development projects- Amount in INR and the details of the
projects undertaken?
As on 31st March 2017, the Company has spent ₹ 22.79 crore on various community development projects under 5 thrust areas.
Have you taken steps to ensure that this community development initiative is successfully adopted by the community?
Please explain in 50 words, or so.
The process of community engagement begins right from business development stage, to projects and operations stage. The
socio-economic study and baselines form the basis for identification of prioritized needs followed by program planning with
help of external experts. This process is reviewed once in every 3-5 years with the objective of going back to community. This
year, while Company implemented programs with prior community consultation through our teams, Company has also set
itself on path of revisiting community needs for the future social aspiration of each location as envisaged by senior leadership.
Hence the planning is based on community consultation based feedback of existing programs as per the stage followed by
annual evaluations of programs and partners’ inputs with a collective approach.
Principle 9
1.
What percentage of customer complaints/consumer cases are pending as on the end of financial year.
As on 31st March 2017, none of the customer complaints/ consumer cases beyond Turnaround Time (TAT) is pending.
2.
Does the Company display product information on the product label, over and above what is mandated as per local
laws? Yes/No/N.A./ Remarks(additional information).
Tata Power is in the business of generation, transmission and distribution of electricity. As electricity being the product, it
requires utmost safety in handling and precautions while using. Tata Power has displayed safety signage at prominent locations
including the substations and Customer Relations Centres. In addition, the Company is also creating safety awareness among
consumers through its website.
3.
Is there any case filed by any stakeholder against the Company regarding unfair trade practices, irresponsible advertising
and/or anti-competitive behaviour during the last five years and pending as on end of financial year. If so, provide
details thereof, in about 50 words or so.
There are no cases pending with regard to unfair trade practices, irresponsible advertising and/or anti-competitive behaviour
as on 31st March, 2017.
4.
Did your Company carry out any consumer survey/ consumer satisfaction trends?
Customer Satisfaction Surveys are key indicator parameters to measure customer satisfaction and dissatisfaction levels. These
surveys are conducted on a quarterly basis across all segments i.e. commercial, industrial and residential consumers and are
face to face interaction with 5 point rating scale. The findings of the report guide us to understand the key improvement areas
which are shared with the concerned departments and accordingly the necessary action is taken based on the key findings.
Overall Customer Satisfaction Assessment Total (CSAT) score in percentage for FY 2016-17, is given below:
Customer
Residential
Industrial
Commercial
Satisfaction (%)
82
82
81
160 I Business Responsibility Report
The Tata Power Company Limited CONSOLIDATED FINANCIAL
STATEMENTS
Hydro Power Plant, ITPC, Zambia
INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
THE TATA POWER COMPANY LIMITED
Report on the Consolidated Ind AS Financial Statements
We have audited the accompanying consolidated Ind AS financial statements of THE TATA POWER COMPANY LIMITED (hereinafter
referred to as “the Parent”) and its subsidiaries (the Parent and its subsidiaries together referred to as “the Group”) its associates and
its joint ventures, comprising the Consolidated Balance Sheet as at 31st March, 2017, the Consolidated Statement of Profit and Loss
(including other comprehensive income), the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity,
for the year then ended and a summary of the significant accounting policies and other explanatory information (hereinafter referred
to as “the consolidated Ind AS financial statements”).
Management’s Responsibility for the Consolidated Ind AS Financial Statements
The Parent’s Board of Directors is responsible for the preparation of these consolidated Ind AS financial statements in terms of the
requirements of the Companies Act, 2013 (hereinafter referred to as “the Act”) that give a true and fair view of the consolidated
financial position, consolidated financial performance including other comprehensive income, consolidated cash flows and statement
of changes in equity of the Group including its Associates and Joint ventures in accordance with the accounting principles generally
accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act. The respective Board of
Directors of the companies included in the Group and of its associates and joint ventures are responsible for maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and its associates and its joint
ventures and for preventing and detecting frauds and other irregularities; the selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting
records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated
Ind AS financial statements by the Directors of the Parent, as aforesaid.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated Ind AS financial statements based on our audit. In conducting our
audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to
be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
consolidated Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated Ind AS
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the consolidated Ind AS financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal financial control relevant to the Parent’s preparation of the consolidated Ind AS financial statements
that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes
evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the
Parent’s Board of Directors, as well as evaluating the overall presentation of the consolidated Ind AS financial statements.
We believe that the audit evidence obtained by us and the audit evidence obtained by the other auditors in terms of their reports
referred to in sub-paragraphs (a) of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified
audit opinion on the consolidated Ind AS financial statements.
Basis for Qualified Opinion
As described in Note 34 (iii) and (iv) to the consolidated Ind AS financial statements, the fair value of unquoted equity shares of Tata
Teleservices Limited (TTSL) has not been determined as at 31st March, 2017. We are, therefore, unable to comment on whether the
carrying value of:
a)
Investments in TTSL of ` 384.88 crore represents the fair value of such investments as at 31st March, 2017 and the consequent
impact thereof on Other Comprehensive Income, and
162 I Consolidated Financials
The Tata Power Company Limited b)
‘Other advance’, which represent TTSL shares receivable from DoCoMo under a contractual obligation of ` 138.55 crore as at
31st March, 2017 represents the fair value of such shares and the consequent impact thereof on the Statement of Profit and
Loss.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of
reports of the other auditors on separate financial statements/consolidated financial statements and other financial information of
the subsidiaries, associates and joint ventures referred to below in the Other Matters paragraph, except for the possible effects of the
matters described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated Ind AS financial statements give the
information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles
generally accepted in India, of the consolidated state of affairs of the Group, its associates and joint ventures as at 31st March, 2017,
and their consolidated profit, consolidated total comprehensive income, their consolidated cash flows and consolidated statement of
changes in equity for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the notes to the Consolidated Ind AS financial statements:
a) Note 36(e) to the consolidated Ind AS financial statements which describes uncertainties relating to the outcome of the Appeal
filed before the Hon’ble Supreme Court. Pending outcome of the Appeal filed before the Hon’ble Supreme Court, no adjustment
has been made by the Group in respect of the standby charges estimated at ` 519 crore accounted for as revenue in earlier
periods and its consequential effects for the period upto 31st March, 2017. The impact of the same on the consolidated Ind AS
financial statements for the year ended 31st March, 2017 cannot presently be determined pending the ultimate outcome of
the matter. Since the Group is of the view, supported by legal opinion, that the Tribunal’s Order can be successfully challenged,
adjustment, if any, will be recorded by the Group based on final outcome of the matter.
b) Note 36(g) to the consolidated Ind AS financial statements in respect of entry tax matter, estimated at ` 1,967.43 crore (including
interest of ` 643.99 crore and penalty of ` 740.89 crore), has been decided by the Hon’ble Bombay High Court against the Group.
The Group is of the view, supported by legal opinions, that it has a strong case on merits and has appealed the matter before the
Hon’ble Supreme Court. Adjustments, if any, will be recorded by the Group based on final outcome of the matter.
c) Note 34(ii)(b) to the consolidated Ind AS financial statements, which describes the uncertainties in estimation as at 31st March,
2017 relating to the determination of the carrying amount of assets at Mundra.
d) Note 36(f ) to the consolidated Ind AS financial statements, related regulatory deferral account balance of ` 591.61 crore in
respect of Rithala Plant as at 31st March, 2017. Since the Group is of the view, supported by legal opinion, that the Order of the
Delhi Electricity Regulatory Commission (DERC) can be successfully challenged, no adjustment are considered necessary.
Our opinion is not modified in respect of these matters.
Other Matters
(a) We did not audit the financial statements/financial information of 11 subsidiaries, whose financial statements/financial
information reflect total assets of ` 24,058.40 crore as at 31st March, 2017, total revenues of ` 7,400.96 crore and net cash inflows
amounting to ` 73.75 crore for the year ended on that date, as considered in the consolidated Ind AS financial statements.
The consolidated Ind AS financial statements also include the Group’s share of net profit of ` 1,005.86 crore for the year ended
31st March, 2017, as considered in the consolidated Ind AS financial statements, in respect of 2 associates and 10 joint ventures,
whose financial statements/financial information have not been audited by us.
These financial statements/financial information have been audited by other auditors whose reports have been furnished to
us by the Management and our opinion on the consolidated Ind AS financial statements, in so far as it relates to the amounts
and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report in terms of subsection (3)
of Section 143 of the Act, insofar as it relates to the aforesaid subsidiaries, joint ventures and associates, is based solely on the
reports of the other auditors.
(b) We did not audit the financial information of 4 subsidiaries, whose financial information reflect total assets of ` 34.74 crore as at
31st March, 2017, total revenues of ` 45.05 crore and net cash (outflows) amounting to ` (0.77) crore for the year ended on that
date, as considered in the consolidated Ind AS financial statements.
The consolidated Ind AS financial statements also include the Group’s share of net profit of ` 1.86 crore for the year ended
31st March, 2017, as considered in the consolidated Ind AS financial statements, in respect of 1 associate and 10 joint ventures,
whose financial information have not been audited by us.
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98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
These financial information are unaudited and have been furnished to us by the Management and our opinion on the
consolidated Ind AS financial statements, in so far as it relates to the amounts and disclosures included in respect of these
subsidiaries, joint ventures and associates, is based solely on such unaudited financial information. In our opinion and according
to the information and explanations given to us by the Management, these financial information are not material to the Group.
(c) The comparative financial information for the year ended 31st March, 2016 and the transition date opening balance sheet as
at 1st April, 2015 in respect of 11 subsidiaries, 2 associates and 10 joint ventures included in this consolidated Ind AS financial
statements prepared in accordance with the Ind AS have been audited by other auditors and have been relied upon by us.
Our opinion on the consolidated Ind AS financial statements above, and our report on Other Legal and Regulatory Requirements
below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other
auditors and the financial information certified by the Management.
Report on Other Legal and Regulatory Requirements
As required by Section 143(3) of the Act, based on our audit and on the consideration of the report of the other auditors on separate
financial statements/consolidated financial statements and the other financial information of, subsidiaries, associates and joint
ventures companies incorporated in India, referred in the Other Matters paragraph above, we report, to the extent applicable, that:
(a) We have sought and except for the matter described in the Basis for Qualified Opinion paragraph above obtained all the
information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the
aforesaid consolidated Ind AS financial statements.
(b)
In our opinion, except for the possible effect of the matters described in the Basis for Qualified Opinion paragraph above, proper
books of account as required by law relating to preparation of the aforesaid consolidated Ind AS financial statements have been
kept so far as it appears from our examination of those books, returns and the reports of the other auditors.
(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss (including Other Comprehensive Income), the
Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity dealt with by this Report are in agreement
with the relevant books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements.
(d)
In our opinion, except for the possible effect of the matters described in the Basis for Qualified Opinion paragraph above, the
aforesaid consolidated Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133
of the Act.
(e) The matters described in the Basis for Qualified Opinion paragraph and Emphasis of Matter paragraphs above, in our opinion,
may have an adverse effect on the functioning of the Group.
(f ) On the basis of the written representations received from the directors of the Parent as on 31st March, 2017 taken on record by
the Board of Directors of the Parent and the reports of the statutory auditors of its subsidiary companies, associate companies
and joint venture companies incorporated in India, none of the directors of the Group’s companies, its associate companies and
joint venture companies incorporated in India is disqualified as on 31st March, 2017 from being appointed as a director in terms
of Section 164(2) of the Act.
(g) The qualification relating to maintenance of accounts and other matters connected therewith are as stated in the Basis for
Qualified Opinion paragraph above.
(h) With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such
controls, refer to our separate Report in “Annexure A”, which is based on the auditors’ reports of the Parent company, subsidiary
companies, associate companies and joint venture companies incorporated in India. Our report expresses qualified opinion on
the operating effectiveness of the Parent’s Company’s internal financial controls over financial reporting.
(i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditor’s) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given
to us:
i.
ii.
The consolidated Ind AS financial statements disclose the impact of pending litigations on the consolidated financial
position of the Group, its associates and joint ventures.
Except for the possible effect of the matters described in the Basis of Qualified Opinion paragraph above, provision has
been made in the consolidated Ind AS financial statements, as required under the applicable law or accounting standards,
for material foreseeable losses, if any, on long-term contracts including derivative contracts.
iii.
There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Parent and its subsidiary companies, associate companies and joint venture companies incorporated in India.
164 I Consolidated Financials
The Tata Power Company Limited
iv.
The Parent has provided requisite disclosures in the consolidated Ind AS financial statements as regards the holding and
dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated 8th November, 2016 of the Ministry
of Finance, during the period from 8th November, 2016 to 30th December, 2016 of the Group entities as applicable.
Based on audit procedures performed and the representations provided to us by the management we report that
the disclosures are in accordance with the relevant books of accounts maintained by those entities for the purpose of
preparation of the consolidated Ind AS financial statements and as produced to us by the Management of the respective
Group entities.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
UDAYAN SEN
Partner
(Membership No. 031220)
MUMBAI, 19th May, 2017
Consolidated Financials I 165
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph (h) under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
In conjunction with our audit of the consolidated Ind AS financial statements of the Company as of and for the year ended
31st March, 2017, we have audited the internal financial controls over financial reporting of THE TATA POWER COMPANY LIMITED
(hereinafter referred to as “the Parent”) and its subsidiary companies, its associate companies and joint ventures, which are companies
incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls
The respective Board of Directors of the Parent, its subsidiary companies, its associate companies and joint ventures, which are
companies incorporated in India, are responsible for establishing and maintaining internal financial controls based on the internal
control over financial reporting criteria established by the respective companies considering the essential components of internal
control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered
Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial
controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the
respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records and the timely preparation of reliable financial information, as required under the Companies
Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Parent, its subsidiary
companies, its associate companies and its joint ventures, which are companies incorporated in India, based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the
“Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing, prescribed under Section
143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the
Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors of the subsidiary
companies, associate companies and joint ventures, which are companies incorporated in India, in terms of their reports referred to
in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our qualified audit opinion on the internal
financial controls system over financial reporting of the Parent, its subsidiary companies, its associate companies and its joint ventures,
which are companies incorporated in India.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
166 I Consolidated Financials
The Tata Power Company Limited Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the
internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Basis for Qualified opinion
According to the information and explanations given to us and based on our audit, and as described in note [34(iii) and 34(iv)], in
the absence of a valuation report and appropriate evidence to determine the fair value as at 31st March, 2017 of investment in Tata
Teleservices Limited (TTSL), a material weakness has been identified relating to inadequate internal financial controls over financial
reporting in respect of the assessment of appropriateness of carrying amount of these investments.
Qualified Opinion
In our opinion, to the best of our information and according to the explanations given to us and based on the consideration of the
reports of the other auditors referred to in the Other Matters paragraph below, the Parent and its subsidiary companies, associate
companies and joint ventures which are companies incorporated in India have, in all material respects, maintained adequate internal
financial controls over financial reporting as of 31st March, 2017, based on the internal control over financial reporting criteria
established by the respective companies considering the essential components of internal control stated in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India, and except for
the possible effects of the material weaknesses described in Basis for Qualified Opinion paragraph above on the achievement of the
objectives of the control criteria, the Parent’s and its subsidiary companies, associate company’s and joint venture’s internal financial
controls over financial reporting were operating effectively as of 31st March, 2017.
We have considered the material weaknesses identified and reported above in determining the nature, timing and extent of audit
tests applied in our audit of the consolidated Ind AS financial statements of the Company for the year ended 31st March, 2017 and
these material weaknesses have affected our opinion on the said consolidated Ind AS financial statements of the Company.
Other Matters
Our aforesaid report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls
over financial reporting insofar as it relates to 4 subsidiary companies and 1 associate company, which are companies incorporated in
India, is based solely on the corresponding reports of the auditors of such companies incorporated in India.
Our opinion is not modified in respect of the above matters.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
UDAYAN SEN
Partner
(Membership No. 031220)
MUMBAI, 19th May, 2017
Consolidated Financials I 167
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Consolidated Balance Sheet as at 31st March, 2017
Notes
Page
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
ASSETS
Non-current Assets
(a) Property, Plant and Equipment ..................................................................... 4
(b) Capital Work-in-Progress ..................................................................................
(c) Investment Property ..........................................................................................
(d) Goodwill ................................................................................................................. 5 a.
(e) Other Intangible Assets .................................................................................... 5 b.
(f ) Intangible Assets under Development .......................................................
(g) Investments accounted for using the Equity Method ........................... 6 a.
(h) Financial Assets
(i) Other Investments .................................................................................... 6 b.
(ii) Trade Receivables ...................................................................................... 7
(iii) Loans ............................................................................................................. 8
(iv) Finance Lease Receivables ..................................................................... 9
(v) Other Financial Assets .............................................................................. 10
(i) Non-current Tax Assets (Net) .......................................................................... 11
(j) Deferred Tax Assets (Net) ................................................................................. 12 a.
(k) Other Non-current Assets ................................................................................ 13
Total Non-current Assets......................................................................................
Current Assets
(a) Inventories ............................................................................................................ 14
(b) Financial Assets
Investments ................................................................................................. 15
(i)
(ii) Trade Receivables ...................................................................................... 7
(iii) Unbilled Revenue ......................................................................................
(iv) Cash and Cash Equivalents .................................................................... 16 a.
(v) Bank Balances other than (iv) above .................................................. 16 b.
(vi) Loans .............................................................................................................. 8
(vii) Finance Lease Receivables ..................................................................... 9
(viii) Other Financial Assets .............................................................................. 10
(c) Current Tax Assets (Net) .................................................................................... 11
(d) Other Current Assets ......................................................................................... 13
Assets Classified as Held For Sale ......................................................................... 17
Total Current Assets ...............................................................................................
Total Assets before Regulatory Deferral Account ....................................
Regulatory Deferral Account - Assets ............................................................ 18
TOTAL ASSETS ...................................................................................................................
EQUITY AND LIABILITIES
Equity
(a) Equity Share Capital ........................................................................................... 19 a.
(b) Unsecured Perpetual Securities .................................................................... 19 b.
(c) Other Equity ......................................................................................................... 20
Equity attributable to Shareholders of the Company ...........................
Non-controlling Interests ....................................................................................
Total Equity .................................................................................................................
LIABILITIES
Non-current Liabilities
(a) Financial Liabilities
(i) Borrowings ................................................................................................... 21
(ii) Trade Payables ............................................................................................
(iii) Other Financial Liabilities ....................................................................... 22
(b) Provisions ............................................................................................................... 23
(c) Deferred Tax Liabilities (Net) ........................................................................... 12 b.
(d) Non-current Tax Liabilities (Net) .................................................................... 24
(e) Other Non-current Liabilities.......................................................................... 25
Total Non-current Liabilities ..............................................................................
Current Liabilities
(a) Financial Liabilities
(i) Borrowings ................................................................................................... 26
(ii) Trade Payables ............................................................................................
(iii) Other Financial Liabilities ....................................................................... 22
(b) Provisions ............................................................................................................... 23
(c) Current Tax Liabilities (Net) ............................................................................. 24
(d) Other Current Liabilities ................................................................................... 25
Total Current Liabilities ........................................................................................
Total Liabilities before Regulatory Deferral Account.............................
Regulatory Deferral Account - Liability ........................................................ 18
TOTAL EQUITY AND LIABILITIES ..............................................................................
189
191
191
193
207
209
210
210
212
213
213
216
218
218
209
221
221
210
210
212
213
216
221
222
223
224
225
227
229
230
214
231
232
232
229
230
231
232
222
43,012.62
1,923.24
2.49
1,732.48
1,705.80
254.68
9,580.09
1,279.14
187.92
77.16
573.47
872.68
146.35
91.53
1,507.55
62,947.20
1,599.56
1,097.78
3,832.12
1,081.92
835.22
119.08
655.44
39.16
913.40
31.68
582.97
10,788.33
1,919.47
12,707.80
75,655.00
6,481.35
82,136.35
270.50
1,500.00
11,508.97
13,279.47
1,868.99
15,148.46
25,142.96
35.57
542.89
270.68
1,759.83
3.74
3,086.70
30,842.37
16,279.79
5,529.00
11,456.68
207.69
40.04
1,976.32
35,489.52
66,331.89
656.00
82,136.35
36,100.84
1,134.16
2.57
5.54
307.34
210.75
9,688.40
1,758.43
190.00
390.37
617.63
667.41
110.61
3.20
1,753.97
52,941.22
1,373.40
335.95
3,540.24
842.64
613.15
50.01
410.27
48.80
511.49
3.00
933.02
8,661.97
1,122.24
9,784.21
62,725.43
7,334.28
70,059.71
270.48
1,500.00
11,362.90
13,133.38
1,749.81
14,883.19
22,413.88
33.12
571.57
243.53
2,096.86
3.74
3,042.88
28,405.58
14,588.91
4,401.36
5,055.98
262.43
70.16
1,711.72
26,090.56
54,496.14
680.38
70,059.71
33,311.90
1,022.04
2.67
5.54
290.98
78.75
11,119.23
2,022.21
190.94
395.19
661.09
1,025.25
151.19
2.57
1,736.74
52,016.29
1,430.20
406.63
3,347.57
685.80
977.23
64.27
255.05
42.51
599.73
3.00
607.74
8,419.73
1,046.57
9,466.30
61,482.59
7,677.16
69,159.75
270.48
1,500.00
11,199.86
12,970.34
1,688.39
14,658.73
21,347.06
29.92
525.83
222.65
1,939.80
3.74
2,983.60
27,052.60
16,577.52
2,856.99
5,998.65
147.56
38.60
1,810.74
27,430.06
54,482.66
18.36
69,159.75
See accompanying notes to the Consolidated Financial Statements
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
Mumbai, 19th May, 2017.
168 I Consolidated Financials
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
The Tata Power Company Limited
Consolidated Statement of Profit and Loss for the year ended 31st March, 2017
Notes
Page
I Revenue from Operations ........................................................................................................................... 27
II Other Income .................................................................................................................................................. 28
III Total Income ...................................................................................................................................................
IV Expenses
Cost of Power Purchased .....................................................................................................................
Cost of Fuel................................................................................................................................................
Raw Material Consumed ...................................................................................................................... 29
Purchase of Finished Goods, Spares & Shares ..............................................................................
Transmission Charges ...........................................................................................................................
Cost of Components Consumed .......................................................................................................
Decrease in Stock-in-Trade and Work in Progress ....................................................................... 29
Employee Benefits Expense ................................................................................................................ 30
Finance Costs............................................................................................................................................ 31
Depreciation and Amortisation Expenses ..................................................................................... 4, 5 b.
Other Expenses........................................................................................................................................ 32
Total Expenses ..............................................................................................................................................
V Profit Before Rate Regulated Activities, Exceptional Items, Tax and Share of Net
Profit of Associates and Joint Ventures accounted for using the Equity Method ........
Add/(Less): Regulatory income/(expense) (net) ........................................................................... 18
Add/(Less): Regulatory income/(expense) (net) in respect of earlier years ........................ 18
VI Profit Before Exceptional Items,Tax and Share of Net Profit of Associates and Joint
Ventures accounted for using the Equity Method .......................................................................
Less: Exceptional Items
Reversal of Impairment in respect of Property, Plant and Equipment .....................
Impairment in the value of Investments in Joint Ventures ..........................................
Loss Towards Contractual Obligation ................................................................................... 34(iv)
VII Net Profit/(Loss) Before Tax and Share of Net Profit of Associates and Joint Ventures
accounted for using the Equity Method ...........................................................................................
VIII Tax Expense
Current Tax ................................................................................................................................................ 33
Deferred Tax .............................................................................................................................................. 12 d.
IX Net Profit/(Loss) for the Year Before Share of Net Profit of Associates and Joint
Ventures accounted for using the Equity Method .......................................................................
Share of Net Profit of Associates and Joint Ventures accounted for using the Equity Method 6 a.
X Profit for the Year .........................................................................................................................................
XI Other Comprehensive Income/(Expense)
A
(i)
Items that will not be reclassified to profit or loss
(a) Remeasurement of the Defined Benefit Plans............................................................... 38 (2.3)
(b) Equity Instruments through Other Comprehensive Income ...................................
(ii) Tax relating to items that will not be reclassified to profit or loss
(a) Current Tax .................................................................................................................................. 33 (3)
(b) Deferred Tax ............................................................................................................................... 12 d.
(iii) Share of Other Comprehensive Income/(Expense) of Associates and Joint Ventures
B
(i)
accounted for using the Equity Method ................................................................................ 6 a.
Items that will be reclassified to profit or loss
(a) Exchange Differences in translating the financial statements of foreign operations .
(b) Share of Other Comprehensive Income of Associates and Joint Ventures
accounted for using the Equity Method .......................................................................... 6 a.
Other Comprehensive Income/(Expense) ........................................................................................
XII Total Comprehensive Income for the year (X + XI) ......................................................................
Profit for the year attributable to:
— Owners of the Company ...............................................................................................................
— Non-controlling interest ...............................................................................................................
233
234
235
235
235
236
192
237
222
222
240
238
216
193
247
239
216
193
193
Other Comprensive Income/(Expense) for the year attributable to:
— Owners of the Company ...............................................................................................................
— Non-controlling interest ...............................................................................................................
Total Comprehensive Income for the year attributable to:
— Owners of the Company ...............................................................................................................
— Non-controlling interest ...............................................................................................................
XIII Earnings Per Equity Share (Face Value ` 1/- Per Share)
Basic (`) ...................................................................................................................................................... 43
Diluted (`) ................................................................................................................................................. 43
266
266
See accompanying notes to the Consolidated Financial Statements
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
Mumbai, 19th May, 2017.
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
For the year ended
31st March, 2017
` crore
27,897.72
202.22
28,099.94
For the year ended
31st March, 2016
` crore
29,500.89
91.34
29,592.23
8,218.99
8,692.39
1,009.67
26.40
224.13
349.98
28.34
1,295.94
3,113.97
1,988.59
2,205.18
27,153.58
946.36
(686.46)
77.00
(609.46)
336.90
Nil
Nil
(651.45)
(651.45)
(314.55)
609.37
(655.19)
(45.82)
(268.73)
1,217.29
948.56
(12.07)
(92.19)
(38.55)
4.48
(63.34)
(18.45)
87.40
(132.72)
815.84
745.48
203.08
948.56
(132.13)
(0.59)
(132.72)
613.35
202.49
815.84
2.34
2.34
9,157.53
7,931.06
1,136.61
29.60
282.09
397.66
34.16
1,227.51
3,235.81
1,648.73
2,157.68
27,238.44
2,353.79
(807.97)
(167.27)
(975.24)
1,378.55
2,435.51
(2,533.35)
Nil
(97.84)
1,280.71
525.21
155.10
680.31
600.40
185.99
786.39
(11.62)
(258.32)
(1.41)
(1.33)
(20.77)
117.70
151.98
(23.77)
762.62
662.20
124.19
786.39
(23.41)
(0.36)
(23.77)
638.79
123.83
762.62
2.03
2.03
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
Consolidated Financials I 169
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Consolidated Cash Flow Statement for the year ended 31st March, 2017
A. Cash Flow from Operating Activities
Net (loss)/profit before Taxes ................................................................................................................................
(314.55)
1,280.71
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Adjustments for:
Depreciation and Amortisation Expenses ...............................................................................................
Reversal of Impairment in respect of Property, Plant and Equipment .........................................
Transfer from Contingency Reserves .........................................................................................................
Impairment in the value of Investments in Joint Ventures ................................................................
Amortisation of Security Deposits .............................................................................................................
Loss/(Gain) of disposal of Property, Plant and Equipment ...............................................................
Finance Cost (Net of Capitalisation) ..........................................................................................................
Interest Income .................................................................................................................................................
Dividend Income ..............................................................................................................................................
Gain on Sale on Current Investments measured at FVTPL ................................................................
Gain on Sale on Investment in Associate accounted for using the equity method .................
Loss on Sale on Investment in Joint Venture accounted for using the equity method ..........
Liabilities / Provisions No Longer Required Written Back ..................................................................
Allowances for Doubtful Debts/Advances (Net) ...................................................................................
Amortisation of premium paid on leasehold land ...............................................................................
Provision for losses ..........................................................................................................................................
Impairment of Non-Current Assets Held for Sale .................................................................................
Warranty Charges .............................................................................................................................................
Loss towards Contractual Obligation .......................................................................................................
Delayed Payment Charges ............................................................................................................................
Transfer from Capital Grants ........................................................................................................................
Transfer of Service Line Contributions ......................................................................................................
Impairment of payment towards lease obligation ...............................................................................
Guarantee Commission ..................................................................................................................................
Realised Exchange (Gain)/Loss on Investing/Financing Activity (Net) ..........................................
Unrealised Exchange Loss (Net) ...................................................................................................................
Operating Profit before Working Capital Changes ......................................................................
Changes in working capital:
Adjustments for operating assets:
Inventories .........................................................................................................................................
Trade Receivable .............................................................................................................................
Unbilled Revenue ............................................................................................................................
Finance Lease Receivables ...........................................................................................................
Current Loan .....................................................................................................................................
Non-current Loan ............................................................................................................................
Other Current Assets ......................................................................................................................
Other Non-current Assets ............................................................................................................
Other Current Financial Assets ...................................................................................................
Other Non-current Financial Assets .........................................................................................
Regulatory deferral account Assets ..........................................................................................
Current Investments
Purchased ....................................................................................................................................
Proceeds from sale ...................................................................................................................
Non-current Investments
Purchased ....................................................................................................................................
Proceeds from sale ...................................................................................................................
Deposits given ..................................................................................................................................
Deposits refunded ...........................................................................................................................
Adjustments for Operating Liabilities:
Trade Payables ..................................................................................................................................
Other Current Liabilities ...............................................................................................................
Other Long-term Liabilities .........................................................................................................
Other Current Financial Liabilities .............................................................................................
Other Non-current Financial Liabilities ...................................................................................
Regulatory Account - Liability ....................................................................................................
Short-term Provisions ....................................................................................................................
Long-term Provisions .....................................................................................................................
Cash Generated from Operations ......................................................................................................
Net Income Tax Paid ........................................................................................................................
A
Carried over ..........
Net Cash Flow from Operating Activities .....................................................................
1,988.59
Nil
14.00
Nil
Nil
18.88
3,113.97
(121.87)
(5.17)
(101.98)
(0.26)
15.27
1.48
43.82
17.31
(91.07)
34.00
14.41
651.45
(27.91)
(61.18)
(67.00)
31.00
(9.90)
(108.57)
371.10
(204.85)
(51.89)
(236.58)
53.80
(0.53)
0.22
395.58
31.52
(448.02)
151.68
852.93
(280.68)
292.43
(83.17)
198.08
Nil
20.00
1,107.87
219.57
(39.56)
247.37
(27.55)
(24.38)
(8.88)
19.34
1,648.73
(2,435.51)
21.00
2,533.35
0.14
(22.08)
3,235.81
(219.22)
(26.72)
(41.91)
(21.14)
Nil
(8.32)
93.10
19.16
34.47
Nil
11.05
Nil
(27.98)
(51.22)
(59.59)
Nil
(9.96)
258.66
69.35
5,720.37
5,405.82
5,001.17
6,281.88
56.66
(242.77)
(157.03)
37.17
0.47
(0.90)
(328.74)
18.94
(198.83)
346.91
342.88
(141.68)
132.16
(0.91)
5.44
(20.00)
Nil
690.52
(150.23)
1,554.26
(106.15)
11.54
(514.65)
47.61
662.02
0.32
21.77
1,493.78
7,590.12
(632.28)
6,957.84
6,957.84
1,676.72
7,808.37
(393.25)
7,415.12
7,415.12
170 I Consolidated Financials
The Tata Power Company Limited Consolidated Statement of Cash Flows for the year ended 31st March, 2017 (Contd.)
B.
Cash Flow from Investing Activities
Brought forward …
Capital Expenditure on Fixed Assets, including Capital Advances ................................
Sale of Fixed Assets..........................................................................................................................
Current Investments
Purchased ....................................................................................................................................
Proceeds from Sale ...................................................................................................................
Consideration transferred on business combinations (Refer Note 45) .......................
Purchase of Long-term Investments - Joint Ventures .........................................................
Purchase of Long-term Investments - Others ........................................................................
Proceeds from Sale of Long-term Investments
Joint Ventures ............................................................................................................................
Associates ....................................................................................................................................
Others ...........................................................................................................................................
Inter-corporate Deposits (Net) ...................................................................................................
Interest Received .............................................................................................................................
Amount paid under Contractual Obligation .........................................................................
Delayed payment charges received .........................................................................................
Commission Received ...................................................................................................................
Dividend Received
Joint Ventures .............................................................................................................................
Associates ....................................................................................................................................
Others ...........................................................................................................................................
Bank Balance not Considered as Cash and Cash Equivalents ..........................................
B
Net Cash Flow Used in investing activities ..................................................................
Cash Flow from Financing Activities
Proceeds from Issue of Equity Shares including shares issued to Minority
Shareholders ......................................................................................................................................
Increase in Capital Contributions ..............................................................................................
Payment towards acquisition of stake from non-controlling interest .........................
Proceeds from Long-term Borrowings ....................................................................................
Repayment of Long-term Borrowings .....................................................................................
Debenture/Share Issue Expenses ..............................................................................................
Proceeds from Short-term Borrowings ...................................................................................
Repayment of Short-term Borrowings ....................................................................................
Interest Paid (including Interest Capitalised) ........................................................................
Dividend Paid ...................................................................................................................................
Additional Income-tax on Dividend Paid ...............................................................................
Distribution on Unsecured Perpetual Securities .................................................................
C
Net Cash Flow from/(used) in Financing Activities .................................................
Net Increase/(Decrease) in Cash and Cash Equivalents ..........................
(A+B+C)
Cash and Cash Equivalents as at 1st April (Opening Balance) .......................................
Cash and Cash Equivalents Acquired on Business Combinations (Net of Bank
Overdraft ` 3.95 crore) (Refer Note 45) .....................................................................................
Effect of Exchange Fluctuation on Cash and Cash Equivalents .....................................
Cash and Cash Equivalents as at 31st March (Closing Balance) ....................................
C.
For the year ended
31st March, 2017
` crore
6,957.84
For the year ended
31st March, 2016
` crore
7,415.12
(3,322.27)
15.88
(39,451.64)
38,908.43
(3,692.63)
(25.62)
(10.26)
184.72
3.50
0.73
90.46
109.59
(790.00)
27.91
9.73
499.07
12.43
5.17
5.83
(7,418.97)
0.87
156.35
(266.71)
8,718.40
(5,943.32)
Nil
13,524.43
(11,338.75)
(3,270.42)
(415.34)
(0.59)
(171.24)
993.68
532.55
239.79
53.85
(7.61)
818.58
(2,176.85)
72.53
(19,553.36)
19,694.29
Nil
(532.64)
(18.71)
Nil
21.74
Nil
177.22
204.59
Nil
27.98
8.46
203.42
12.24
26.72
14.27
(1,818.10)
0.02
158.28
Nil
5,476.74
(5,416.44)
(1.69)
12,168.48
(14,728.92)
(3,246.29)
(411.18)
(11.60)
(170.85)
(6,183.45)
(586.43)
813.34
Nil
12.88
239.79
Notes:
1
Cash and Cash Equivalents include:
(i)
Balances with Banks:
In Current Accounts ..........................................................................................................................................................
In Deposit Accounts (with original maturity less than three months) ...........................................................
(ii) Cheques on Hand ..........................................................................................................................................................................
(iii) Cash on Hand ..................................................................................................................................................................................
(iv) Bank Overdraft (Refer Note 26) ................................................................................................................................................
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
Mumbai, 19th May, 2017.
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
459.91
349.29
23.60
2.42
(16.64)
818.58
495.44
80.72
35.86
1.13
(373.36)
239.79
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
Consolidated Financials I 171
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
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Consolidated Financials I 173
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
1.
Background:
Notes to the Consolidated Financial Statements
The Tata Power Company Limited (the ‘Company’) is a public limited Company domiciled and incorporated in India under the
Indian Companies Act, 1913. The registered office of the Company is located at Bombay House, 24, Homi Mody Street, Mumbai
400 001 India.
The Company and its subsidiaries (collectively referred to as ‘the Group’) is India’s largest integrated power company with
a growing international presence. The Group together with its joint venture companies has an installed gross generation
capacity of 10,577 MW and a presence in all the segments of the power sector viz. Fuel, Security and Logistics, Generation
(thermal, hydro, solar and wind), Transmission, Distribution and Trading. The Group is serving more than 2.6 million distribution
consumers in India and has developed the country’s first 4,000 MW Ultra Mega Power Project at Mundra (Gujarat) based on
super-critical technology. It is also one of the largest renewable energy players in India with a clean energy portfolio of 3,141
MW. Its international presence includes strategic investments in Indonesia, Singapore, South Africa, Zambia, Georgia and
Bhutan, with its track record of technology leadership, project execution excellence, world class safety processes, customer care
and driving green initiatives, the Group is poised for a multi-fold growth and committed to ‘lighting up lives’ for generations
to come.
2.
Significant Accounting Policies:
2.1
Statement of compliance
The consolidated financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as
notified under the Companies (Indian Accounting Standards) Rules, 2015, read with section 133 of the Companies Act, 2013.
Upto the year ended 31st March, 2016, the Group prepared its consolidated financial statements in accordance with the
requirements of previous GAAP, which included Standards notified under the Companies (Accounting Standards) Rules, 2006.
These consolidated financial statements are the first consolidated financial statements of the Group under Ind AS. The date of
transition to Ind AS is 1st April, 2015.
Refer Note 46 for details of first-time adoption exemptions availed by the Group.
2.2
Basis of preparation and presentation
These consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments
that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique.
2.3
Basis of Consolidation:
(i)
(ii)
The Company consolidates all entities which are controlled by it. The consolidated financial statements comprise
the financial statements of the Company, its controlled entities and its subsidiaries. Control exists when the parent
has power over the entity, is exposed, or has rights, to variable returns from its involvement with the entity and has
the ability to affect those returns by using its power over the entity. Power is demonstrated through existing rights
that give the ability to direct relevant activities, those which significantly affect the entity’s returns. The entities are
consolidated from the date control commences until the date control ceases.
The consolidated financial statements of the Group companies are consolidated on a line-by-line basis and intra-group
balances and transactions including unrealised gain/loss from such transactions are eliminated upon consolidation.
These consolidated financial statements are prepared by applying uniform accounting policies in use at the Group.
Non-controlling interests which represent part of the net profit or loss and net assets of subsidiaries that are not,
directly or indirectly, owned or controlled by the Group, are excluded.
174 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
(iii)
(iv)
Changes in the Company’s interests in subsidiaries that do not result in a loss of control are accounted for as equity
transactions. The carrying amount of the Company’s interests and the non-controlling interests are adjusted to reflect
the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in
equity and attributed to owners of the Company.
Joint Ventures are entities over which the Group has joint control but not full control. Associates are entities over
which the Group has significant influence but not control. Investments in Joint Ventures and Associates are accounted
for using the equity method of accounting. The investment is initially recognised at cost, and the carrying amount is
increased or decreased to recognise the investor’s share of the profit or loss of the investee after the acquisition date.
The Group’s investment in Joint Ventures and Associates includes goodwill identified on acquisition.
(v)
Details of the Group’s subsidiaries at the end of the reporting period considered in the preparation of the Consolidated
Financial Statements are as follows:
Name
Country of
Incorporation
% voting
power held
as at
31st March,
2017
% voting
power held
as at
31st March,
2016
% voting
power held
as at
1st April,
2015
Subsidiaries (Direct)
Af-Taab Investment Co. Ltd. (AICL)
Chemical Terminal Trombay Ltd. (CTTL)
Tata Power Trading Co. Ltd. (TPTCL)
NELCO Ltd. (NELCO)
Maithon Power Ltd. (MPL)
Tata Power Delhi Distribution Ltd. (TPDDL)
Coastal Gujarat Power Ltd. (CGPL)
Bhira Investments Ltd. (BIL)
Bhivpuri Investments Ltd. (BHIL)
Khopoli Investments Ltd. (KIL)
Trust Energy Resources Pte. Ltd. (TERL)
Industrial Power Utility Ltd. (IPUL) #
Tata Ceramics Ltd. (TCL) #
Tata Power International Pte. Ltd. (TPIPL)
Tata Power Solar Systems Ltd. (TPSSL)
Tata Power Renewable Energy Ltd. (TPREL)
Tata Power Jamshedpur Distribution Ltd. (TPJDL) #
Subsidiaries (Indirect)
PT Sumber Energi Andalan Tbk. (SEA)
Tata Power Green Energy Ltd. (TPGEL)
NDPL Infra Ltd. (NDPLIL)
Energy Eastern Pte. Ltd. (EEL)
Tatanet Services Ltd. (TNSL) (Consolidated with
NELCO Ltd.)
Supa Windfarm Ltd. (SWFL)
Poolavadi Windfarm Ltd. (PWL)
Nivade Windfarm Ltd. (NWL)
India
India
India
India
India
India
India
Mauritius
Mauritius
Mauritius
Singapore
India
India
Singapore
India
India
India
Indonesia
India
India
Singapore
India
India
India
India
100
100
100
50.04
74
51
100
100
100
100
100
100
57.07
100
100
100
100
94.61
100
51
100
50.04
100
100
100
100
100
100
50.04
74
51
100
100
100
100
100
100
57.07
100
100
100
100
94.61
100
51
100
50.04
100
100
100
100
100
100
50.04
74
51
100
100
100
100
100
100
Nil
100
100
100
100
94.61
100
51
100
50.04
Nil
Nil
Nil
Consolidated Financials I 175
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Notes to the Consolidated Financial Statements
Name
Country of
Incorporation
% voting
power held
as at
31st March,
2017
% voting
power held
as at
31st March,
2016
% voting
power held
as at
1st April,
2015
Indo Rama Renewables Jath Ltd. (IRRJL) $
Welspun Renewables Energy Pvt Ltd (WREPL) $
Clean Sustainable Solar Energy Private Limited
(CSSEPL) $ @
Dreisatz Mysolar24 Private Limited (DMPL) $ @
MI Mysolar24 Private Limited (MIMPL) $ @
Northwest Energy Private Limited (NEPL) $ @
Solarsys Energy Private Limited (SEPL) $ @ ^
Solarsys Renewable Energy Private Limited
(SREPL) $ @
Unity Power Private Limited (UPPL) $ @
Viraj Renewables Energy Private Limited
(VREPL) $ @
Welspun Energy Jharkhand Private Limited
(WEJPL) $ @
Welspun Energy Maharashtra Private Limited
(WEMPL) $ @
Welspun Energy Rajasthan Private Limited
(WERPL) $ @
Welspun Solar AP Private Limited (WSAPPL) $ @
Welspun Solar Kannada Private Limited
(WSKPL) $ @
Welspun Solar Madhya Pradesh Private Limited
(WSMPL) $ @
Welspun Solar Punjab Private Limited (WSPPL) $ @
Welspun Solar Rajasthan Private Limited
(WSRPL) $ @
Welspun Solar Tech Private Limited (WSTPL) $ @
Welspun Solar UP Private Limited (WSUPPL) $ @
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
Welspun Urja Gujarat Private Limited (WUGPL) $ @ India
Chirasthayee Saurya Limited (CSL)
(Consolidated with Tata Power solar Systems Ltd.)
Nelco Network Products Ltd. (NNPL)
(Consolidated with NELCO Ltd.)
Vagarai Windfarm Limited (VWL) # @
Welspun Urja India Limited (WUIL) $
India
India
India
India
100
99.99
100
73.60
74
100
100
72.50
74
100
100
100
100
100
100
100
100
100
100
100
100
100
50.04
100
100
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2017.
$ Acquired during the year - Refer Note 45
@ Consolidated with Welspun Renewables Energy Pvt Ltd (WREPL)
^ Merged with Welspun Renewables Energy Pvt Ltd (WREPL)
176 I Consolidated Financials
The Tata Power Company Limited 2.4
Business Combinations
Notes to the Consolidated Financial Statements
The Group accounts for its business combinations under acquisition method of accounting. Acquisition related costs are
recognised in profit and loss as incurred. The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the
condition for recognition are recognised at their fair values at the acquisition date.
Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill. Where the fair value of
identifiable assets and liabilities exceed the cost of acquisition, after reassessing the fair values of the net assets and contingent
liabilities, the excess is recognised as capital reserve.
The interest of non-controlling shareholders is initially measured either at fair value or at the non-controlling interests’
proportionate share of the acquiree’s identifiable net assets. The choice of measurement basis is made on an acquisition-by-
acquisition basis. Subsequent to acquisition, the carrying amount of non-controlling interests is the amount of those interests
at initial recognition plus the non-controlling interests’ share of subsequent changes in equity of subsidiaries.
Business combinations arising from transfers of interests in entities that are under the common control are accounted at
historical costs. The difference between any consideration given and the aggregate historical carrying amounts of assets and
liabilities of the acquired entity are recorded in shareholders’ equity.
2.5
Use of Estimates
The preparation of these consolidated financial statements in conformity with the recognition and measurement principles of
Ind AS requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities,
disclosures relating to contingent liabilities as at the date of the consolidated financial statements and the reported amounts
of income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and future periods are affected.
Key source of estimation of uncertainty at the date of the consolidated financial statements, which may cause a material
adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of, impairment of
property, plant and equipment, impairment of goodwill, valuation of current and deferred tax expense, fair value of unquoted
securities and impairment of investments, valuation of defined benefit obligations, regulatory deferral accounts and provisions
and contingent liabilities.
Impairment of Property, Plant and Equipment:
Property, Plant and Equipment are reviewed for impairment, whenever events or changes in circumstances indicate that
carrying amount may not be recoverable.
An impairment loss is recognised whenever the carrying amount of an asset or its cash generating unit (CGU) exceeds its
recoverable amount. The recoverable amount of an asset is the greater of its fair value less cost to sell and value in use. To
calculate value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market rates and the risk specific to the asset. For an asset that does not generate largely independent cash
inflows, the recoverable amount is determined for the CGU to which the asset belongs. Fair value less cost to sell is the best
estimate of the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable willing
parties, less the cost of disposal.
Impairment losses, if any, are recognised in the Statement of Profit and Loss. Impairment losses are reversed in the Statement
of Profit and Loss only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have
been determined if no impairment loss had previously been recognised.
Impairment of Goodwill:
The Group estimate the value in use of the cash generating unit based on the future cash flows after considering current
economic conditions and trends, estimated future operating results and growth rate and anticipated future economic and
regulatory conditions. The estimated cash flows are developed using internal forecasts. The discount rate used for the cash
generating unit’s represent the weighted average costs of capital based on the historical market returns of comparable
companies.
Consolidated Financials I 177
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Valuation of deferred tax assets:
Notes to the Consolidated Financial Statements
The Group reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has
been explained under Note 2.13.2.
Regulatory deferral account:
The Group determines surplus/deficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the
year in respect of its regulated operations based on the principles laid down under the Tariff Regulations on the basis of Tariff
Orders issued. In respect of such surplus/deficit, appropriate adjustments as stipulated under the regulations are made during
the year. Further, any adjustments that may arise on annual performance review by regulators under the Tariff Regulations is
made after the completion of such review.
Provisions
The policy for the provisions has been explained under Note 2.18. Provisions are reviewed at each Balance sheet date and
adjusted to reflect the current best estimates.
2.6
Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction
rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in
its present condition subject only to terms that are usual and customary for sale of such asset and its sale is highly probable.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within
one year from the date of classification.
Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
2.7
Revenue recognition
Revenue is recognised to the extent that it is probable that economic benefit will flow to the Group and that the revenue can
be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced
for estimated rebates and other similar allowances.
2.7.1 Sale of Power
Revenue from Generation, Transmission and Distribution of power is recognised on an accrual basis and includes unbilled
revenues accrued upto the end of the accounting year.
The Group determines surplus/deficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the year
in respect of its regulated operations based on the principles laid down under the relevant Tariff Regulations/Tariff Orders as
notified by respective State Regulatory Commissions. In respect of such surplus/deficit, appropriate adjustments as stipulated
under the regulations are made during the year. Further, any adjustments that may arise on annual performance review by
respective State Regulatory Commissions under the aforesaid Tariff Regulations/Tariff Orders is made after the completion of
such review.
2.7.2 Delayed payment charges
Delayed payment charges and interest on delayed payments are recognized, on grounds of prudence when recovered.
2.7.3 Sale of Goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the
following conditions are satisfied:
•
•
the Group has transferred to the buyer the significant risks and rewards of ownership of the goods;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;
178 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Group; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
•
•
•
2.7.4 Rendering of Services
Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The revenue
from time and material contracts is recognised at the contractual rates as labour hours and direct expenses are incurred.
The Group’s policy for recognition of revenue from construction contracts is described in Note 2.7.6 below.
2.7.5 Dividend and Interest income
Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
2.7.6 Construction Contracts
When the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to
the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of
contract costs incurred for work performed to date relative to the estimated total contract costs, except where this would not
be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the
extent that the amount can be measured reliably and its receipt is considered probable.
The outcome of a construction contract is considered as estimated reliably when (a) all critical approvals necessary for
commencement of the project have been obtained; (b) the stage of completion of the project reaches a reasonable level of
development i.e. the expenditure incurred on construction and development costs is at least 10% of the construction and
development costs or ` 5 crore spend whichever is higher.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of
contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which
they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense
immediately.
When contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus
is shown as amounts due from customers for contract work. Amounts received before the related work is performed are
included in the balance sheet, as a liability, as advances received. Amounts billed for work performed but not yet paid by the
customer are included in the balance sheet under trade receivables.
2.8
Leasing arrangement
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
Consolidated Financials I 179
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.8.1 The Group as lessor
Notes to the Consolidated Financial Statements
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Group’s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
Group’s net investment outstanding in respect of the leases.
Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected general inflation to compensate for the Group’s expected
inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a
straight-line basis over the lease term.
2.8.2 The Group as lessee
Assets held under finance leases are initially recognised as assets of the Group at their fair value at the inception of the lease
or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the
balance sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless
they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Group’s general
policy on borrowing costs (see Note 2.10 below). Contingent rentals are recognised as expenses in the periods in which they
are incurred.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s expected
inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising
under operating leases are recognised as an expense in the period in which they are incurred.
2.9
Foreign Currencies
The functional currency of the Company and its Indian Subsidiaries is Indian rupee (`). The functional currency of foreign
subsidiaries is the currency of their countries of domicile.
Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency
denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the
balance sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets
and liabilities are recognised in the statement of profit and loss. Non-monetary assets and liabilities that are measured in terms
of historical cost in foreign currencies are not translated.
Assets and liabilities with functional currency other than presentation currency have been translated to the presentation
currency using exchange rates prevailing on the Balance Sheet date. Statement of profit and loss has been translated using
weighted average exchange rates. Translation adjustments have been reported as foreign currency translation reserve in the
statement of changes in equity.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange
differences on foreign currency borrowings relating to assets under construction for future productive use, which are included
in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.
2.10 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.
180 I Consolidated Financials
The Tata Power Company Limited
2.11 Government Grant
Notes to the Consolidated Financial Statements
Government grants are not recognised until there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grant will be received.
Government grants relating to income are determined and recognised in the profit and loss over the period necessary to
match them with the cost that they are intended to compensate and presented within other operating income.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as
deferred income and are credited to profit and loss on a straight line basis over the expected life of the related assets and
presented within other operating income.
The benefit of a Government loan at a below market rate of interest is treated as a Government grant, measured as the
difference between proceeds received and the fair value of loan based on prevailing market interest rates.
2.12 Employee Benefits
2.12.1 Defined contribution plans
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered
service entitling them to the contributions.
2.12.2 Defined benefits plans
For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains
and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is
reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings
and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Group’s
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related restructuring costs.
2.12.3 Short-term and other long-term employee benefits
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that
service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated
future cash outflows expected to be made by the Group in respect of services provided by employees upto the reporting date.
2.13
Income Taxes
Current and deferred tax for the year
Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.
Consolidated Financials I 181
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.13.1 Current tax
Notes to the Consolidated Financial Statements
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible.
Current tax is determined on the basis of taxable income and tax credits computed for each of the entities in the Group, in
accordance with the applicable tax rates and the provisions of applicable tax laws of the respective jurisdiction where the
entities are located.
The current income tax expense for overseas subsidiaries has been computed based on the tax laws applicable to each
subsidiary in the respective jurisdiction in which it operates.
Advance taxes and provisions for current income taxes are presented in the Balance sheet after off-setting advance tax paid
and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset
and liability on a net basis.
2.13.2 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated
financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that taxable profits will be available against which those deductible
temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference
arises from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.
For operations carried out under tax holiday period (80IA benefits of Income Tax Act, 1961), deferred tax assets or liabilities, if
any, have been established for the tax consequences of those temporary differences between the carrying values of assets and
liabilities and their respective tax bases that reverse after the tax holiday ends.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
relevant entity intends to settle its current tax assets and liabilities on a net basis.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognised
as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic
benefit associated with the asset will be realised.
2.14 Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
Cost includes purchase price and any directly attributable cost of bringing the asset to its working condition for its intended
use and for qualifying assets, borrowing costs capitalised in accordance with the Group’s accounting policy. Depreciation
commences when the assets are ready for their intended use.
Freehold land and Assets held for sale are not depreciated.
Regulatory Assets:
Depreciation on Property, plant and equipment in respect of electricity business of the Group covered under Part B of Schedule
II of the Companies Act, 2013, has been provided on the straight line method at the rates using the methodology as notified
by the respective regulators.
182 I Consolidated Financials
The Tata Power Company Limited
Non-Regulatory Assets:
Notes to the Consolidated Financial Statements
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives, using the straight-line method.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.
Estimated useful lives of the Regulatory and Non Regulatory assets are as follows:
Type of asset
Hydraulic Works
Buildings-Plant
Buildings-Others
Coal Jetty
Railway Sidings, Roads, Crossings, etc.
Plant and Equipments
Transmission Lines, Cable Network, etc.
Furniture and Fixtures
Office Equipments
Motor Vehicles, Launches, Barges, etc.
Ships
Helicopters
Useful lives
35 years
25 to 40 years
25 to 50 years
25 years
5 to 35 years
3 to 40 years
4 to 35 years
5 to 15 years
5 to 15 years
4 to 10 years
20 years
35 years
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property,
plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is
recognised in profit or loss.
The cost and related accumulated depreciation of an item of property, plant and equipment disposed of or retired are
eliminated from the consolidated financial statements upon sale or retirement of the asset and the resultant gains and losses
are recognised in the consolidated statement of profit or loss.
2.15
Intangible assets
2.15.1 Goodwill
Goodwill represents the cost of acquired business as established at the date of acquisition of the business in excess of the
acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities less accumulated impairment
losses, if any. Goodwill is tested for impairment annually or when events or circumstances indicate that the implied fair value
of goodwill is less than its carrying amount.
2.15.2 Other Intangible assets acquired separately
Intangible assets that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment
losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and
amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis.
2.15.3 Internally generated intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Consolidated Financials I 183
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is
recognised if, and only if, all of the following have been demonstrated:
•
•
•
•
•
•
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
the intention to complete the intangible asset and use or sell it;
the ability to use or sell the intangible asset;
how the intangible asset will generate probable future economic benefits;
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the
date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset
can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation
and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
2.15.4 Derecognition of Intangible assets.
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
2.15.5 Useful lives of intangible assets.
Estimated useful lives of the intangible assets are as follows:
Type of asset
Technical Know-How and Prototypes
Licences
Computer Software
Customer contracts acquired under business combination
Useful lives
5 years
5 years
4 to 5 years
12 to 25 years
2.16
Impairment
2.16.1 Tangible and intangible assets
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to
estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash generating
unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are
also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss.
184 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
2.16.2 Goodwill
Cash generating units to which goodwill has been allocated are tested for impairment annually, or more frequently where
there is indication for impairment. If the recoverable amount of a cash generating unit is less than its carrying amount, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
2.17
Inventories
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on weighted average
basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale.
2.18 Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision
is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows (when the effect of the time value of money is material).
2.19.1 Onerous Contracts
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is
considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received from the contract.
2.19.2 Warranties
Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale
of the relevant products, at the Group’s best estimate of the expenditure required to settle the Group’s obligation.
2.20 Financial Instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in statement of profit and loss.
2.21 Financial Assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by
regulation or convention in the market place.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets.
Consolidated Financials I 185
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.21.1 Financial assets at amortised cost
Notes to the Consolidated Financial Statements
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose
objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give
rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
2.21.2 Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cashflows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the
principal amount outstanding.
On initial recognition, the Group makes an irrevocable election on an instrument-by-instrument basis to present the
subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other
than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising
from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments
through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the
investments.
2.21.3 Financial assets at fair value through profit or loss (FVTPL)
Investments in equity instruments are classified as at FVTPL, unless the Group irrevocably elects on initial recognition to
present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not
held for trading.
Other financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of
financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.
2.21.4 Impairment of financial assets (other than at fair value)
The Group assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Group recognises lifetime expected
losses for all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit
losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected
credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
2.22 Financial liabilities and equity instruments
2.22.1 Classification as debt or equity
Debt and equity instruments issued by a Group are classified as either financial liabilities or as equity in accordance with the
substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
2.22.2 Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Equity instruments issued by a Group entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Group’s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised
in statement of profit and loss on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
2.22.3 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
2.23 Derivative financial instruments
The Group enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks,
including foreign exchange forward contracts and cross currency swaps.
186 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss
immediately.
2.24 Cash and cash equivalents
The Group considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that
are subject to an insignificant risk of change in value and having original maturities of three months or less from the date
of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for
withdrawal and usage.
2.25 Cash Flow Statement
Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Group are segregated.
2.26 Earnings per equity share
Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by
the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed
by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could
have been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted
for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the
outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless
issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes effected prior to the approval of the consolidated financial
statements by the Board of Directors.
2.27 Standards issued but not yet effective
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules,
2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, ‘Share-based payment’. The amendments
are applicable to the Group from 1st April, 2017.
Amendment to Ind AS 7:
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of consolidated financial statements
to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash
changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities
arising from financing activities, to meet the disclosure requirement.
The Group is evaluating the requirements of the amendment and its impact on its cash flows, which are not expected to be
material.
Amendment to Ind AS 102:
The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-
settled awards and awards that include a net settlement feature in respect of withholding taxes.
It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled
awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market
performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest.
Consolidated Financials I 187
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified
with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such
from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect
of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was
part of an equity settlement.
The Group does not have any scheme of share based payments and hence the requirements of the amendment will not have
any impact on the consolidated financial statements.
3.
Critical accounting estimates and judgements
In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results
may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods. Detailed information about each of these estimates
and judgements is included in relevant notes together with information about the basis of calculation for each affected line
item in the consolidated financial statements.
The areas involving critical estimates are:
Estimation of current and deferred tax expense - Note 12 and 33
Estimation for impairment of property, plant and equipment - Note 34 (ii)(b)
Estimated fair value of unquoted securities and impairment of investments - Note 34 (iii)
Estimation for impairment of goodwill - Note 5 (a)
Estimation of defined benefit obligation - Note 38
Estimation of provision for warranty claims - Note 23
Estimation of the values of contingent liabilities - Note 36
Regulatory deferral accounts - Note 18
Estimates and judgement are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the group and that are believed to be reasonable under the
circumstances.
188 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
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190 I Consolidated Financials
The Tata Power Company Limited
5 a. Goodwill
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Deemed Cost
Balance at beginning of year ............................................................
Additional amounts recognised from business combinations
occurring during the year (Refer Note 45) ...................................
Balance at end of year .........................................................................
5.54
1,726.94
1,732.48
5.54
Nil
5.54
5.54
Nil
5.54
The Group tests goodwill annually for impairment. Acquired Subsidiaries to which goodwill relate have been identified as
Cash Generating Units. The entire goodwill pertains to power business, which is a reportable segment. The goodwill of the
Group includes ` 1,713.84 crore as of 31st March, 2017 on account of the investment in Welspun Renewable Energy Private
Ltd. (WREPL). The Group estimated the value in use in WREPL which uses cash flow projections based on financial budgets
covering the contracted power sale agreements with Procurer ranging from 15 to 20 years and discount rate of 9.18% per
annum as at 31st March, 2017 assuming successive refinancing with low cost debt.
Cash flow projections used during the project period are based on the expected earnings and generation level throughout the
projects period. The Management believes that any reasonably possible change in the key assumptions on which recoverable
amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the
Goodwill.
The key assumptions used in the value in use calculations for the power cash-generating unit are as follows:
Continuity of PPA
Most of the projects have an aligned and secured power purchase agreement (PPA) in the
range of 15 to 25 years, which would be majority of estimated life of respective plant. The PPAs
guarantee steady cash flow to the Company through fixed tariff over the useful life of assets.
O&M cost for the project period has been extrapolated by using a steady 5% per annum
growth rate which is as per the generally approved rate as per the Central Electricity Regulatory
Commission (CERC) regulation of power business.
O&M cost inflation
Refinance of the Term Loan Discount rate has been calculated based on revised cost of the debt assuming successive
refinancing old debt with low cost debt.
5 b. Other Intangible Assets
Copyrights,
patents, other
intellectual
property rights,
services and
operating rights #
Right To Use
Assets $
Customer
Contracts
acquired
under business
combination
` crore
Total
Computer
software $
Cost
Balance as at 1st April, 2016 ............................................
Additions ....................................................................................
Acquisitions through business combinations ..............
Disposal.......................................................................................
Balance as at 31st March, 2017 ......................................
Accumulated amortisation and impairment
Balance as at 1st April, 2016 ............................................
Amortisation expense ...........................................................
Eliminated on Disposal of assets .......................................
Balance as at 31st March, 2017 ......................................
Net carrying amount
As at 31st March, 2017 .......................................................
As at 31st March, 2016 .......................................................
93.26
35.34
Nil
(13.68)
114.92
50.54
15.90
(13.52)
52.92
62.00
42.72
163.51
Nil
Nil
Nil
163.51
29.46
6.54
Nil
36.00
127.51
134.05
1.07
Nil
1,385.50
Nil
1,386.57
0.85
37.06
Nil
37.91
229.17
81.52
Nil
(5.81)
304.88
98.82
43.34
(4.91)
137.25
487.01
116.86
1,385.50
(19.49)
1,969.88
179.67
102.84
(18.43)
264.08
1,348.66
0.22
167.63
130.35
1,705.80
307.34
Consolidated Financials I 191
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 5 b. Other Intangible Assets (Contd.)
Notes to the Consolidated Financial Statements
` crore
Total
Computer
software $
Copyrights,
patents, other
intellectual
property rights,
services and
operating rights
#
Right To Use
Assets $
Customer
Contracts
acquired
under business
combination
Cost
Balance as at 1st April, 2015 ............................................
Additions ....................................................................................
Balance as at 31st March, 2016 ......................................
Accumulated amortisation and impairment
Balance as at 1st April, 2015 ............................................
Amortisation expense ...........................................................
Reversals of Impairment losses recognised in the
statement of profit or loss ...................................................
Balance as at 31st March, 2016 ......................................
Net carrying amount
As at 31st March, 2016 .......................................................
As at 1st April, 2015 .............................................................
Notes:
# Internally generated intangible assets.
$ Other than internally generated intangible assets.
Depreciation/Amortisation:
79.51
13.75
93.26
38.52
12.02
Nil
50.54
42.72
40.99
163.51
Nil
163.51
44.36
6.54
(21.44)
29.46
134.05
119.15
1.06
0.01
1.07
0.75
0.10
Nil
0.85
0.22
0.31
194.37
34.80
229.17
63.84
34.98
Nil
98.82
130.35
130.53
438.45
48.56
487.01
147.47
53.64
(21.44)
179.67
307.34
290.98
Depreciation on Tangible Assets ........................................................................................
Add: Amortisation on Intangible Assets ...........................................................................
Total .............................................................................................................................................
For the year ended
31st March, 2017
For the year ended
31st March, 2016
` crore
1,885.75
102.84
1,988.59
` crore
1,595.09
53.64
1,648.73
192 I Consolidated Financials
The Tata Power Company Limited
6 a.
Investments accounted for using the Equity Method
Notes to the Consolidated Financial Statements
I
Investment in Associates
(a) Investment in Equity Shares fully Paid-up (unless
otherwise stated)
Quoted
Tata Communications Ltd. ......................................................
(b) Investment in Equity Shares fully Paid-up (unless
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
` crore
` crore
` crore
1,34,22,037
1,34,22,037
1,34,22,037
10
105.99
13.36
50.40
otherwise stated)
Unquoted
Brihat Trading Private Ltd. ......................................................
ASL Advanced Systems Pvt. Ltd. ! ........................................
The Associated Building Co. Ltd. ..........................................
Rujuvalika Investments Ltd. ...................................................
Panatone Finvest Ltd. ...............................................................
Nelito Systems Ltd. $ ................................................................
Yashmun Engineers Ltd. ..........................................................
Dagachhu Hydro Power Corporation Ltd. ........................
Tata Projects Ltd. ........................................................................
3,350
Nil
1,825
Nil
59,08,82,000
Nil
19,200
10,74,320
9,67,500
** Less: Impairment in the value of Investments ............
II
Investment in Joint Ventures
(a) Investment in Equity Shares fully Paid-up (unless
otherwise stated)
Unquoted
PT Kaltim Prima Coal ................................................................
PT Mitratama Perkasa $ ...........................................................
Indocoal Resources (Cayman) Ltd. ......................................
PT Indocoal Kaltim Resources ...............................................
PT Nusa Tambang Pratama ....................................................
Candice Investments Pte. Ltd. ...............................................
PT Marvel Capital Indonesia ..................................................
PT Dwikarya Prima Abadi .......................................................
PT Kalimantan Prima Power ...................................................
PT Baramulti Sukessarana Tbk. .............................................
Indocoal KPC Resources (Cayman) Ltd. .............................
Adjaristsqali Netherlands BV .................................................
Khoromkheti Netherlands BV # ............................................
Cennergi Pty. Ltd. .......................................................................
Itezhi Tezhi Power Corporation Ltd .....................................
OTP Geothermal Pte. Ltd. ! ....................................................
Resurgent Power Ventures Pte Ltd ......................................
LTH Milcom Private Ltd ............................................................
Powerlinks Transmission Ltd ..................................................
Industrial Energy Ltd ................................................................
Dugar Hydro Power Ltd. ..........................................................
Tubed Coal Mines Ltd#. ...........................................................
Mandakini Coal Company Ltd# ............................................
** Less: Impairment in the value of Investments ............
1,23,540
Nil
300
82,380
18,000
3
1,07,459
10,769
7,500
68,02,90,000
300
16,459
500
86
4,52,500
Nil
14,736
66,660
23,86,80,000
49,28,40,000
4,32,50,002
1,81,97,800
3,93,00,000
Total ........................................................................................................................
Notes:
3,350
5,55,000
1,825
Nil
3,350
5,55,000
1,825
3,66,667
59,08,82,000 59,08,82,000
10,20,000
19,200
10,74,320
9,67,500
10,20,000
19,200
10,74,320
9,67,500
1,23,540
3,600
300
82,380
18,000
3
1,07,459
10,769
7,500
1,23,540
3,600
300
82,380
18,000
3
1,07,459
10,769
7,500
68,02,90,000 68,02,90,000
300
15,523
500
70
Nil
3,98,57,876
Nil
Nil
23,86,80,000 23,86,80,000
49,28,40,000 46,53,12,000
3,80,00,002
4,32,50,002
1,78,36,000
1,81,17,800
3,93,00,000
3,93,00,000
300
15,671
500
85
4,52,500
4,48,07,876
Nil
Nil
10
10
900
10
10
10
100
Nu 1,000
100
USD 100
IDR 10,00,000
USD 1
IDR 10,000
IDR 10,000
SGD 1
IDR 10,000
IDR 1,00,000
USD 100
IDR 100
USD 1
Euro 1
Euro 1
ZAR
ZMW 1
USD 1
USD 1
10
10
10
10
10
10
0.01
Nil
0.17
Nil
275.33
Nil
5.31
109.53
493.76
884.11
Nil
884.11
0.01
0.56**
0.17
Nil
25.25
21.46
4.79
99.98
434.69
586.91
0.56
586.35
0.01
0.56**
0.17
0.60
67.48
20.71
1.64
106.43
399.96
597.56
0.56
597.00
4,062.03**
Nil
3,234.67
0.24
766.48
7.45
*
225.27
190.02
1,039.71**
0.18
341.03
Nil
178.49
413.24
Nil
0.51
0.07
424.41
588.24
23.68
Nil
Nil
11,495.72
2,905.73
8,589.99
9,580.09
4,023.61**
490.61
3,303.51
0.01
675.61
3.24
*
203.58
170.91
1,053.97**
0.19
351.32
Nil
245.98
307.40
257.05**
Nil
Nil
373.35
623.81
42.13
Nil
Nil
12,126.28
3,037.59
9,088.69
9,688.40
3,832.30**
494.29
3,102.04
0.01
587.78
*
*
170.16
105.75
979.16
0.03
323.71
Nil
11.45
Nil
212.52
Nil
Nil
367.01
605.15
37.16
9.11
15.87
10,853.50
381.67
10,471.83
11,119.23
1. Aggregate Market Value of Quoted Investments ...........................................................................................................................................
2. Aggregate Carrying Value of Quoted Investments ........................................................................................................................................
3. Aggregate Carrying value of Unquoted Investments (Net of Impairment) ..........................................................................................
969.14
105.99
9,474.10
506.82
13.36
9,675.04
566.41
50.40
11,068.83
*
!
$
#
**
Denotes figure below ` 50,000
Sold during the year
Classified as held for sale during the year and partially sold during the year
Share of Profit / Loss has not been considered, since loss being restricted to the cost of investments
Impairment in the value of Investments
Consolidated Financials I 193
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
I
Details of Material Associates:
Details of each of the Group’s Material Associates at the end of the reporting period are as follows:
Name of Associate
Principal Activity
Tata Communications Limited^ Telecommunications
Panatone Finvest Limited
Investments, NBFC
Tata Projects Limited
EPC Contracts
Dagachhu Hydro Power
Corporation Limited
Hydro Power
Generation Company
Place of
Incorporation
and Principal
Place of
Business
India
India
India
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March,
2017
As at
31st March,
2016
4.71%
39.98%
47.78%
4.71%
39.98%
47.78%
As at
1st April,
2015
4.71%
39.98%
47.78%
Bhutan
26.00%
26.00%
26.00%
^ The Group through its associate Panatone Finvest Limited, holds 30.10% of Equity Shares in Tata Communications
Limited, resulting the Group having significant influence on Tata Communications Limited. Accordingly, Investment in
Tata Communications Limited has been classified as an associate and accounted for using the Equity Method.
Summarised Financial Information of Material Associates:
A Tata Communications Limited
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current Assets ......................................................................
Current Assets ................................................................................
15,916.50
5,185.79
Non-current Liabilities ................................................................
(11,099.85)
Current Liabilities .........................................................................
(8,392.17)
1,610.27
18,546.35
6,627.26
(14,844.62)
(10,685.45)
(356.46)
16,217.47
7,971.88
(10,384.13)
(13,375.24)
429.98
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Revenue ..............................................................................................................................
17,619.73
18,148.58
Profit or Loss from Continuing Operations ............................................................
Post Tax Profit/(Loss) from Discontinuing Operations .......................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income/(Expense) for the year ........................................
Dividends received from Tata Communications Limited during the year ...
(761.40)
1,996.86
1,235.46
864.64
2,100.10
5.77
229.37
(218.91)
10.46
(608.82)
(598.36)
7.38
194 I Consolidated Financials
The Tata Power Company Limited
6 a.
Investments accounted for using the Equity Method (Contd.)
Notes to the Consolidated Financial Statements
Reconciliation of the above summarised financial information to the carrying amount of the interest in Tata
Communications Limited recognised in the consolidated financial statements:
Net Assets of Tata Communications Limited ......................
Proportion of the Group’s ownership interest in Tata
Communication Limited ............................................................
Goodwill ..........................................................................................
Carrying amount of the Group’s
in Tata
Communication Limited ............................................................
interest
B Panatone Finvest Limited
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
As at
31st March, 2017
` crore
1,610.27
As at
31st March, 2016
` crore
(356.46)
As at
1st April, 2015
` crore
429.98
4.71%
75.84
30.15
105.99
4.71%
(16.79)
30.15
13.36
4.71%
20.25
30.15
50.40
As at
31st March, 2017
` crore
663.65
21.30
Nil
(0.05)
As at
31st March, 2016
` crore
75.09
4.41
Nil
(20.13)
As at
1st April, 2015
` crore
322.18
43.08
Nil
(200.25)
684.90
59.37
165.01
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income/(Expense) for the year ........................................
For the year ended
31st March, 2017
` crore
0.71
365.27
260.27
625.54
For the year ended
31st March, 2016
` crore
2.71
82.04
(187.67)
(105.63)
Dividends received from Panatone Finvest Limited during the year ...........
Nil
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Panatone Finvest
Limited recognised in the consolidated financial statements:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Net Assets of Panatone Finvest Limited ...............................
684.90
Proportion of the Group’s ownership
in
Panatone Finvest Limited ..........................................................
interest
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in Panatone
Finvest Limited ..............................................................................
39.98%
273.82
1.51
275.33
59.37
39.98%
23.74
1.51
25.25
165.01
39.98%
65.97
1.51
67.48
Consolidated Financials I 195
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
C Tata Projects Limited
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
612.33
6,195.33
(57.72)
(5,753.71)
996.23
491.74
4,847.23
(26.21)
(4,435.45)
877.31
386.42
4,418.86
(22.72)
(3,959.32)
823.24
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Revenue ..............................................................................................................................
6,057.56
4,408.12
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from Tata Projects Limited during the year ....................
135.47
(4.31)
131.16
4.84
63.63
0.12
63.75
4.84
Reconciliation of the above summarised financial information to the carrying amount of the interest in Tata Projects
Limited recognised in the consolidated financial statements:
Net Assets of Tata Projects Limited ........................................
Proportion of the Group’s ownership interest in Tata
Projects Limited ............................................................................
Goodwill ..........................................................................................
Elimination of Unrealised Profits ............................................
Carrying amount of the Group’s interest in Tata Projects
Limited .............................................................................................
D Dagachhu Hydro Power Corporation Ltd.
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
As at
31st March, 2017
` crore
996.23
As at
31st March, 2016
` crore
877.31
As at
1st April, 2015
` crore
823.24
47.78%
476.00
23.30
(5.54)
493.76
47.78%
419.18
23.30
(7.79)
434.69
47.78%
393.34
23.30
(16.68)
399.96
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
1,214.02
45.99
(788.34)
(50.40)
421.27
1,262.15
54.28
(890.46)
(41.43)
384.54
1,310.34
98.35
(916.04)
(83.30)
409.35
196 I Consolidated Financials
The Tata Power Company Limited
6 a.
Investments accounted for using the Equity Method (Contd.)
Notes to the Consolidated Financial Statements
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income/(Expense) for the year ........................................
Dividends received from Dagachhu Hydro Power Corporation Ltd.
during the year .................................................................................................................
For the year ended
31st March, 2017
` crore
120.80
50.57
(0.23)
50.34
For the year ended
31st March, 2016
` crore
99.83
(24.81)
Nil
(24.81)
1.77
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Dagachhu Hydro
Power Corporation Ltd. recognised in the consolidated financial statements:
Net Assets of Dagachhu Hydro Power Corporation Ltd.
Proportion of the Group’s ownership
in
Dagachhu Hydro Power Corporation Ltd. ..........................
interest
Carrying amount of the Group’s interest in Dagachhu
Hydro Power Corporation Ltd. .................................................
II Details of individually not Material Associates:
Name of Associate
Principal Activity
Nelito Systems Ltd. $
Yashmun Engineers Ltd.
ASL Advanced Systems Pvt. Ltd. $ Global Positioning Systems
Brihat Trading Private Ltd. #
The Associated Building Co. Ltd. #
Trading Business
Services Provided for Building
Indian IT Solution and Services
Billing and other related Services
Rujuvalika Investments Ltd.
(upto 30th April, 2015)
Investments, NBFC
As at
31st March, 2017
` crore
421.27
As at
31st March, 2016
` crore
384.54
As at
1st April, 2015
` crore
409.35
26.00%
109.53
109.53
26.00%
99.98
99.98
26.00%
106.43
106.43
Place of
Incorporation
and Principal
Place of
Business
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
India
India
India
India
India
India
28.15%
27.27%
Nil
33.21%
33.14%
Nil
49.89%
27.27%
32.90%
33.21%
33.14%
Nil
49.89%
27.27%
32.90%
33.21%
33.14%
27.59%
# These associates have not been considered for consolidation being not material to the Group.
$ Partially sold during the year and balance classified as held for sale.
Aggregate Summarised Financial Information of Associates that are not individually material.
The Group’s share of Profit/(Loss) from Continuing Operations ....................
The Group’s share of Other Comprehensive Income/(Expense) ....................
The Group’s share of Total Comprehensive Income/(Expense) ......................
(0.08)
Nil
(0.08)
4.26
Nil
4.26
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
Consolidated Financials I 197
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
6 a.
Investments accounted for using the Equity Method (Contd.)
Notes to the Consolidated Financial Statements
Aggregate carrying amount of the Group’s interests in
these Associates ...........................................................................
5.49
26.99
23.69
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
# Unrecognised share of losses of an Associate ...................................................
As at
31st March, 2017
` crore
Nil
As at
31st March, 2016
` crore
0.15
# Cumulative share of loss of an Associate ........................
As at
31st March, 2017
` crore
Nil
As at
31st March, 2016
` crore
0.43
As at
1st April, 2015
` crore
0.28
III Details and Financial Information of Material Joint Ventures at the end of the reporting period is as follows:
Name of Joint Venture
Principal Activity
PT Kaltim Prima Coal
Indocoal Resources (Cayman) Ltd. Coal Trading
PT Nusa Tambang Pratama
Coal mining and exploration
PT Baramulti Suksessarana TBK
Itezhi Tezhi Power Corporation
Powerlinks Transmission Limited
Industrial Energy Limited
A PT Kaltim Prima Coal
Infrastructure Support for Coal
Business
Coal mining and trading
Hydro power generation
Power transmission
Power generation and operation
of power plant
Place of
Incorporation
and Principal
Place of
Business
Indonesia
Cayman Island
Proportion of Ownership Interest and
Voting Rights held by the Group
As at
31st March,
2017
30.00%
30.00%
As at
31st March,
2016
30.00%
30.00%
As at
1st April,
2015
30.00%
30.00%
Indonesia
Indonesia
Zambia
India
30.00%
26.00%
50.00%
51.00%
30.00%
26.00%
50.00%
51.00%
30.00%
26.00%
Nil
51.00%
India
74.00%
74.00%
74.00%
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
Cash and Cash Equivalents .......................................................
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
As at
31st March, 2017
` crore
3,563.10
4,381.68
(2,168.47)
(4,005.21)
1,771.10
As at
31st March, 2016
` crore
4,901.68
10,187.97
(2,654.64)
(11,081.91)
1,353.10
As at
1st April, 2015
` crore
5,552.08
9,740.17
(3,091.41)
(10,716.34)
1,484.50
459.65
112.57
176.74
(2,270.68)
(2,020.81)
(1,868.90)
(224.02)
(509.36)
(847.92)
198 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
A PT Kaltim Prima Coal (Contd.)
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year .......................................
Total Comprehensive Income for the year .............................................................
Dividends received from PT Kaltim Prima Coal during the year ....................
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
For the year ended
31st March, 2017
` crore
21,734.86
1,548.67
(46.67)
1,502.00
314.87
For the year ended
31st March, 2016
` crore
19,324.18
36.83
57.19
94.02
90.77
48.44
15.79
62.76
1,490.61
53.42
15.97
116.02
296.14
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Kaltim Prima
Coal recognised in the consolidated financial statements:
Net Assets of PT Kaltim Prima Coal ........................................
Proportion of the Group’s ownership interest in PT
Kaltim Prima Coal .........................................................................
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in PT Kaltim
Prima Coal .......................................................................................
Impairment of Goodwill.............................................................
Carrying amount of the Group’s interest in PT Kaltim
Prima Coal (net of impairment) ...............................................
B
Indocoal Resources (Cayman) Ltd.
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
Cash and Cash Equivalents .......................................................
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
As at
31st March, 2017
` crore
1,771.10
As at
31st March, 2016
` crore
1,353.10
As at
1st April, 2015
` crore
1,484.50
30.00%
531.33
3,530.70
4,062.03
(2,665.78)
30.00%
405.93
3,617.68
4,023.61
(2,723.23)
30.00%
445.35
3,386.95
3,832.30
(381.67)
1,396.25
1,300.38
3,450.63
As at
31st March, 2017
` crore
2,141.32
1,179.03
Nil
(1,184.44)
2,135.91
As at
31st March, 2016
` crore
2,837.81
386.17
Nil
(1,065.40)
2,158.58
As at
1st April, 2015
` crore
2,623.32
247.34
NIl
(843.26)
2,027.40
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Consolidated Financials I 199
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
B
Indocoal Resources (Cayman) Ltd. (Contd.)
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from Indocoal Resources (Cayman) Ltd. during the
year .......................................................................................................................................
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
For the year ended
31st March, 2017
` crore
21.32
23.66
Nil
23.66
For the year ended
31st March, 2016
` crore
609.10
9.42
Nil
9.42
Nil
Nil
21.30
Nil
Nil
Nil
Nil
18.37
Nil
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Indocoal Resources
(Cayman) Ltd. recognised in the consolidated financial statements:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Net Assets of Indocoal Resources (Cayman) Ltd. ..............
2,135.91
2,158.58
2,027.40
in
Proportion of the Group’s ownership
Indocoal Resources (Cayman) Ltd. .........................................
interest
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in Indocoal
Resources (Cayman) Ltd. ............................................................
30.00%
640.77
2,593.90
30.00%
647.57
2,655.94
30.00%
608.22
2,493.82
3,234.67
3,303.51
3,102.04
C PT Nusa Tambang Pratama
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
2,214.90
1,430.68
(73.94)
(1,016.30)
2,555.34
2,418.84
909.43
(53.08)
(1,022.64)
2,252.55
2,314.71
518.90
(36.62)
(837.72)
1,959.27
Cash and Cash Equivalents .......................................................
216.25
38.55
29.07
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
(591.85)
(604.60)
(570.38)
Nil
Nil
Nil
200 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
C PT Nusa Tambang Pratama (Contd.)
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from PT Nusa Tambang Pratama during the year ........
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
867.62
441.60
(0.01)
441.59
Nil
Nil
5.73
87.09
159.48
496.37
254.97
Nil
254.97
Nil
Nil
1.20
37.52
85.24
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Nusa Tambang
Pratama recognised in the consolidated financial statements:
Net Assets of PT Nusa Tambang Pratama ............................
2,555.34
2,252.55
1,959.27
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Proportion of the Group’s ownership interest in PT
Nusa Tambang Pratama .............................................................
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in PT Nusa
Tambang Pratama ........................................................................
D PT Baramulti Suksessarana TBK
30.00%
766.48
Nil
766.48
30.00%
675.61
Nil
675.61
30.00%
587.78
Nil
587.78
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
830.85
527.29
(40.04)
(603.88)
714.22
836.26
273.91
(81.66)
(336.98)
691.53
Cash and Cash Equivalents .......................................................
293.30
107.94
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
(331.13)
(147.49)
(6.29)
(51.18)
798.56
218.57
(113.42)
(291.82)
611.89
42.91
(90.80)
(87.55)
Consolidated Financials I 201
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
D PT Baramulti Suksessarana TBK (Contd.)
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income for the year ...........................................................
Total Comprehensive Income for the year .............................................................
Dividends received from PT Baramulti Suksessarana TBK during the year
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
For the year ended
31st March, 2017
` crore
1,887.48
273.05
0.32
273.37
61.05
For the year ended
31st March, 2016
` crore
1,604.06
149.22
1.22
150.44
28.08
66.19
1.15
7.33
87.27
57.41
1.65
9.84
56.81
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Baramulti
Suksessarana TBK recognised in the consolidated financial statements:
Net Assets of PT Baramulti Suksessarana TBK ....................
Proportion of the Group’s ownership interest in PT
Baramulti Suksessarana TBK .....................................................
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in PT Baramulti
Suksessarana TBK .........................................................................
Impairment of Goodwill.............................................................
Carrying amount of the Group’s interest in PT Baramulti
Suksessarana TBK (net of impairment) .................................
E
Itezhi Tezhi Power Corporation
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
Cash and Cash Equivalents .......................................................
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
As at
31st March, 2017
` crore
714.22
As at
31st March, 2016
` crore
691.53
As at
1st April, 2015
` crore
611.89
26.00%
185.70
854.01
1,039.71
(239.95)
26.00%
179.80
874.17
1,053.97
(245.12)
799.76
808.85
26.00%
159.09
820.07
979.16
Nil
979.16
As at
31st March, 2017
` crore
1,156.27
584.59
(1,093.07)
(197.17)
450.62
As at
31st March, 2016
` crore
1,074.09
277.34
(879.90)
(202.54)
268.99
As at
1st April, 2015
` crore
Nil
Nil
Nil
Nil
Nil
156.35
(101.70)
(907.21)
195.09
(90.19)
(879.90)
Nil
Nil
Nil
202 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
E
Itezhi Tezhi Power Corporation (Contd.)
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from Itezhi Tezhi Power Corporation during the year
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
For the year ended
31st March, 2017
` crore
530.44
219.67
Nil
219.67
Nil
For the year ended
31st March, 2016
` crore
Nil
63.26
Nil
63.26
Nil
11.83
0.01
35.95
157.67
Nil
Nil
Nil
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Itezhi Tezhi Power
Corporation recognised in the consolidated financial statements:
Net Assets of Itezhi Tezhi Power Corporation ....................
Proportion of the Group’s ownership interest in Itezhi
Tezhi Power Corporation ...........................................................
Goodwill ..........................................................................................
Carrying amount of the Group’s interest in Itezhi Tezhi
Power Corporation .......................................................................
F
Powerlinks Transmission Limited
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
Cash and Cash Equivalents .......................................................
0.08
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
Non-current Financial Liabilities
(excluding trade
payables and provisions) ...........................................................
(114.70)
(156.64)
As at
31st March, 2017
` crore
450.62
As at
31st March, 2016
` crore
268.99
As at
1st April, 2015
` crore
Nil
50.00%
225.31
187.93
413.24
50.00%
134.50
172.90
307.40
Nil
Nil
Nil
Nil
As at
31st March, 2017
` crore
914.53
As at
31st March, 2016
` crore
983.93
As at
1st April, 2015
` crore
1,059.49
265.73
(188.90)
(157.29)
834.07
219.86
(317.32)
(152.56)
733.91
0.29
(121.32)
(176.77)
222.98
(424.97)
(135.51)
721.99
2.61
(104.89)
(267.32)
Consolidated Financials I 203
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
F
Powerlinks Transmission Limited (Contd.)
Revenue ..............................................................................................................................
Profit for the year ............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from Powerlinks Transmission Limited during the year
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
For the year ended
31st March, 2017
` crore
150.66
195.78
0.14
195.92
40.58
For the year ended
31st March, 2016
` crore
164.09
121.77
(0.01)
121.76
46.54
Nil
5.88
20.96
(68.96)
Nil
7.06
30.77
7.96
Reconciliation of the above summarised financial information to the carrying amount of the interest in Powerlinks
Transmission Limited recognised in the consolidated financial statements:
Net Assets of Powerlinks Transmission Limited .................
Proportion of the Group’s ownership
in
Powerlinks Transmission Limited ............................................
interest
Goodwill ..........................................................................................
Deferred Tax Liabilities on Undistributable Profit .............
Carrying amount of the Group’s interest in Powerlinks
Transmission Limited ..................................................................
G
Industrial Energy Limited
Non-current Assets ......................................................................
Current Assets ................................................................................
Non-current Liabilities ................................................................
Current Liabilities .........................................................................
The above amounts of assets and liabilities include the
following:
Cash and Cash Equivalents .......................................................
Current Financial Liabilities (excluding trade payables
and provisions) ..............................................................................
(excluding trade
Non-current Financial Liabilities
payables and provisions) ...........................................................
As at
31st March, 2017
` crore
834.07
As at
31st March, 2016
` crore
733.91
As at
1st April, 2015
` crore
721.99
51.00%
425.38
Nil
(0.97)
424.41
51.00%
374.29
Nil
(0.94)
373.35
51.00%
368.21
Nil
(1.20)
367.01
As at
31st March, 2017
` crore
1,587.00
288.31
(802.81)
(270.80)
801.70
As at
31st March, 2016
` crore
1,668.80
421.99
(890.84)
(340.03)
859.92
As at
1st April, 2015
` crore
1,721.53
343.93
(850.24)
(371.61)
843.61
9.82
(227.16)
(643.55)
2.72
(303.77)
(787.44)
3.22
(363.84)
(756.34)
204 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
G
Industrial Energy Limited (Contd.)
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Revenue ..............................................................................................................................
Profit for the year .............................................................................................................
Other Comprehensive Income/(Expense) for the year ......................................
Total Comprehensive Income for the year .............................................................
Dividends received from Industrial Energy Limited during the year ...........
The above profit/(loss) for the year include the following:
Depreciation and amortisation ..................................................................................
Interest Income ................................................................................................................
Interest Expense ..............................................................................................................
Income-tax Expense .......................................................................................................
527.95
62.28
(0.25)
62.03
73.93
Nil
Nil
89.21
85.82
448.01
54.79
Nil
54.79
46.53
Nil
Nil
73.92
32.50
Reconciliation of the above summarised financial information to the carrying amount of the interest in Industrial Energy
Limited recognised in the consolidated financial statements:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Net Assets of Industrial Energy Limited ...............................
801.70
859.92
843.61
Proportion of the Group’s ownership interest in Industrial
Energy Limited ...................................................................................
Goodwill ..........................................................................................
Deferred Tax Liabilities on Undistributable Profit .............
Carrying amount of the Group’s interest in Industrial
Energy Limited ..............................................................................
74.00%
593.26
Nil
(5.02)
588.24
74.00%
636.34
Nil
(12.53)
623.81
74.00%
624.27
Nil
(19.12)
605.15
Consolidated Financials I 205
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
6 a.
Investments accounted for using the Equity Method (Contd.)
Notes to the Consolidated Financial Statements
IV Details and Financial Information of Individually not Material Joint Ventures at the end of the reporting period is
as follows:
Name of Joint Venture
Principal Activity
Place of
Incorporation
and Principal
Place of
Business
PT Mitratama Perkasa ^
PT Indocoal Kaltim Resources
Candice Investments Pte. Ltd.
PT Marvel Capital Indonesia
PT Dwikarya Prima Abadi
PT Kalimantan Prima Power
Indocoal KPC Resources (Cayman) Ltd. Coal Trading
Adjaristsqali Netherlands BV
Khoromkheti Netherlands BV
Cennergi Pty. Ltd.
OTP Geothermal Pte. Ltd. $
Resurgent Power Ventures Pte Ltd
LTH Milcom Private Limited
Dugar Hydro Power Ltd.
Tubed Coal Mines Ltd.
Mandakini Coal Company Limited
^ Classified as held for sale in the current year.
Infrastructure Support for Coal Business Indonesia
Indonesia
Shell Company
Investments
Singapore
Infrastructure Support for Coal Business Indonesia
Infrastructure Support for Coal Business Indonesia
Indonesia
Electricity Support Services
Cayman Island
Netherlands
Netherlands
South Africa
Singapore
Singapore
India
India
India
India
Hydro power generation
Hydro power generation
Wind power generation
Geothermal power generation
Investments and Services
Investments and Services
Hydro power generation
Coal mining and trading
Coal mining and trading
Proportion of Ownership Interest
and Voting Rights held by the Group
As at
1st April,
2015
28.38%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
40.00%
40.00%
50.00%
50.00%
Nil
Nil
50.001% 50.001%
40.00%
40.00%
33.33%
33.33%
As at
31st March,
2017
28.38%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
40.00%
40.00%
50.00%
Nil
26.00%
26.00%
50.001%
40.00%
33.33%
As at
31st March,
2016
28.38%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
40.00%
40.00%
50.00%
50.00%
Nil
Nil
$ Sold during the year.
Aggregate Summarised Financial Information of Joint Ventures that are not individually material
The Group’s share of profit/(loss) from continuing operations ......................
The Group’s share of Other Comprehensive Income/(Expense) ....................
The Group’s share of Total Comprehensive Income/(Expense) ..............
For the year ended
31st March, 2017
` crore
4.33
Nil
4.33
For the year ended
31st March, 2016
` crore
(138.95)
Nil
(138.95)
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Aggregate carrying amount of the Group’s interest in
these Joint Ventures ....................................................................
Impairment of Goodwill/Investments ..................................
Carrying amount of the Group’s interest in these
Joint Ventures ..............................................................................
966.94
Nil
1,765.02
(69.24)
1,380.06
Nil
966.94
1,695.78
1,380.06
The unrecognised share of profit of Joint Ventures for
the year ............................................................................................
*
Nil
Nil
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
206 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
V Change in the Group’s Ownership interest in a Joint Venture
In the prior year, the Group held a 50% interest in OTP Geothermal Pte. Ltd. and accounted for the investments as a Joint
Venture. In March 2017, the Group disposed of full interest in OTP Geothermal Pte. Ltd. to third party for proceeds of
` 184.72 crore. This transaction has resulted in the recognition of loss in profit and loss calculated as follows:
Proceeds of disposal ........................................................................................................................................................
Less: Carrying amount of investment on the date of loss of Joint Control ..................................................
Loss Recognised ...............................................................................................................................................................
For the year ended
31st March, 2017
` crore
184.72
199.99
(15.27)
The Loss recognised in the current year is a realised loss in full and there is no tax benefit to the group in this loss.
6 b. Other Investments
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
` crore
` crore
` crore
I
Investments carried at Fair Value
Comprehensive Income
(a) Investment in Equity Shares fully Paid-up (unless
through Other
otherwise stated) (Quoted)
HDFC Bank Ltd. ...........................................................................
IDBI Bank Ltd. ..............................................................................
Voltas Ltd. .....................................................................................
Tata Consultancy Services Ltd. ..............................................
Tata Teleservices (Maharashtra) Ltd.$ .................................
Trent Ltd. ! ....................................................................................
Tata Motors Ltd. ..........................................................................
Tata Motors Ltd. - differential voting rights ......................
Tata Investment Corporation Ltd. ........................................
7,500
1,42,720
2,33,420
4,85,354
Nil
Nil
3,57,159
51,022
8,57,143
7,500
1,42,720
2,33,420
6,11,804
13,72,63,174
3,87,714
3,57,159
51,022
8,57,143
7,500
1,42,720
2,33,420
6,33,804
13,72,63,174
3,87,714
3,38,525
48,360
8,57,143
(b) Investment in Equity Shares fully Paid-up (unless
otherwise stated) (Unquoted)
Tata Industries Ltd. . ..................................................................
Tata Sons Ltd. . ............................................................................
Haldia Petrochemicals Ltd. . ...................................................
Tata Teleservices Ltd. # . ...........................................................
Tata International Ltd . . ...........................................................
Tata Services Ltd. .......................................................................
Taj Air Ltd. . ...................................................................................
Tata Capital Ltd . .........................................................................
Indian Energy Exchange Ltd. $.............................................
68,28,669
6,673
2,24,99,999
32,83,97,823
24,000
552
79,00,760
23,33,070
Nil
68,28,669
6,673
2,24,99,999
32,83,97,823
24,000
552
79,00,760
23,33,070
12,50,000
68,28,669
6,673
2,24,99,999
32,83,97,823
24,000
552
79,00,760
23,33,070
12,50,000
2
10
1
1
10
10
10
10
2
100
1,000
10
10
1,000
1,000
10
10
10
Carried over …
1.08
1.07
9.62
118.03
Nil
Nil
16.63
1.53
54.51
202.47
115.47
194.70
56.48
384.88
18.77
Nil
Nil
7.79
Nil
778.09
980.56
980.56
0.80
1.00
6.49
154.20
90.59
61.71
13.81
1.47
40.48
370.55
115.47
194.70
56.48
509.34
18.77
Nil
7.90
7.23
98.04
1,007.93
1,378.48
1,378.48
0.77
1.01
6.53
161.87
107.75
56.99
18.63
1.60
49.10
404.25
115.47
194.70
56.48
766.48
18.77
Nil
7.90
7.23
70.07
1,237.10
1,641.35
1,641.35
Consolidated Financials I 207
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
6 b. Other Investments (Contd.)
Notes to the Consolidated Financial Statements
II
Investments carried at Fair Value through Profit or Loss
(a) Investment in Equity Shares fully Paid-up (unless
Brought forward …
otherwise stated) (Quoted)
Geodynamics Ltd . .....................................................................
(b) Investment in Equity Shares fully Paid-up (unless
otherwise stated) (Unquoted)
Power Exchange India Ltd . ....................................................
Exergen Pty. Ltd. . .......................................................................
Sunengy Pte. Ltd. . .....................................................................
Technopolis Knowledge Park Ltd. . .....................................
Zoroastrian Co-operative Bank Ltd. ...................................
(c) Investment in Mututal Funds (Unquoted)
Tata FMP - Series 44 - Scheme B - Growth . ......................
Tata FMP - Series 46 - Scheme A - Growth . ......................
Tata FMP - Series 45 - Scheme D - Growth . ......................
III
Investments carried at Amortised Cost
(a) Statutory Investments
(i) Contingencies Reserve Fund Investments
Government Securities (Unquoted)
7.88% GOI (2030) . .............................................................
6.79% GOI (2029) . .............................................................
8.28% GOI (2027) . .............................................................
8.24% GOI (2027) . .............................................................
8.33% GOI (2026) . .............................................................
7.16% GOI (2023) . .............................................................
6.84% GOI (2022) . .............................................................
8.19% GOI (2020) . .............................................................
6.35% GOI (2020) . .............................................................
7.83% GOI (2018) . .............................................................
7.99% GOI (2017) . .............................................................
7.49% GOI (2017) . .............................................................
7.59% GOI (2016) . .............................................................
(ii) Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
8.28% GOI (2027) . .............................................................
8.20% GOI (2025) . .............................................................
7.35% GOI (2024) . .............................................................
8.15% GOI (2022) . .............................................................
8.19% GOI (2020) . .............................................................
6.35% GOI (2020) . .............................................................
6.05% GOI (2019) . .............................................................
6.25% GOI (2018) . .............................................................
7.99% GOI (2017) . .............................................................
7.49% GOI (2017) . .............................................................
(b) Other Investments
Others
Government Securities (Unquoted)
8.07% GOI (2017) . .............................................................
Total ........................................................................................................................
Notes:
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
` crore
980.56
` crore
1,378.48
` crore
1,641.35
2,94,00,000
2,94,00,000
2,94,00,000
AUD 1.50
1.60
3.88
4.76
25,00,000
4,37,904
3,04,838
18,10,000
6,000
25,00,000
4,37,904
3,04,838
18,10,000
6,000
25,00,000
4,37,904
3,04,838
18,10,000
6,000
10
AUD 20.53
AUD 2.10
10
25
Nil
Nil
Nil
Nil
Nil
Nil
11,951,664
3,168,325
1,301,188
10,00,000
10,00,000
11,30,000
9,65,000
7,50,000
9,00,000
66,000
7,03,000
16,01,300
10,00,000
Nil
Nil
Nil
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
Nil
Nil
Nil
10,00,000
Nil
11,30,000
9,65,000
7,50,000
9,00,000
Nil
7,03,000
16,01,300
10,00,000
8,48,700
7,36,000
Nil
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
15,00,000
33,49,300
25,00,000
Nil
Nil
11,30,000
9,65,000
7,50,000
Nil
Nil
7,03,000
16,01,300
10,00,000
8,48,700
7,36,000
19,000
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
15,00,000
33,49,300
25,00,000
10
10
10
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Nil
Nil
3,000
100
Nil
Nil
Nil
Nil
0.14
0.14
Nil
Nil
Nil
Nil
1.74
10.00
9.59
11.30
9.65
7.50
9.00
0.67
7.03
16.01
10.00
Nil
Nil
Nil
90.75
Nil
Nil
Nil
Nil
0.15
0.15
Nil
Nil
Nil
Nil
4.03
10.00
Nil
11.30
9.65
7.50
9.00
Nil
7.03
16.01
10.00
8.49
7.36
Nil
96.34
61.45
20.00
31.00
29.75
19.40
2.49
42.00
Nil
Nil
Nil
206.09
296.84
61.45
20.00
31.00
29.75
19.40
2.49
42.00
15.00
33.49
25.00
279.58
375.92
Nil
Nil
Nil
Nil
0.10
0.10
13.86
3.55
1.45
18.86
23.72
Nil
Nil
11.30
9.65
7.50
Nil
Nil
7.03
16.01
10.00
8.49
7.36
0.19
77.53
61.45
20.00
31.00
29.75
19.40
2.49
42.00
15.00
33.49
25.00
279.58
357.11
Nil
296.84
1,279.14
Nil
375.92
1,758.43
0.03
357.14
2,022.21
204.07
204.07
1,075.07
374.43
374.43
1,384.00
409.01
409.01
1,613.20
1.
2.
3.
Aggregate Market Value of Quoted Investments .........................................................................................................................................
Aggregate Carrying Value of Quoted Investments ......................................................................................................................................
Aggregate Carrying Value of Unquoted Investments .................................................................................................................................
!
$ Classified as held for sale during the year
# Refer Note 34 (iii)
Sold during the year
208 I Consolidated Financials
The Tata Power Company Limited
7.
Trade Receivables
(Unsecured unless otherwise stated)
Notes to the Consolidated Financial Statements
Non-current Trade Receivables
Considered good .........................................................................................
Considered doubtful ..................................................................................
Less: Allowance for Doubtful Trade Receivables ...............................
Total ..........................................................................................................................
Current Trade Receivables
Considered good .........................................................................................
Considered doubtful ..................................................................................
Less: Allowance for Doubtful Trade Receivables ...............................
Total ..........................................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
187.92
6.24
194.16
6.24
187.92
190.00
6.24
196.24
6.24
190.00
190.94
6.17
197.11
6.17
190.94
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
3,832.12
310.58
4,142.70
310.58
3,832.12
3,540.24
264.86
3,805.10
264.86
3,540.24
3,347.57
178.36
3,525.93
178.36
3,347.57
Note: The Group holds security deposits of ` 250.53 crore (31st March, 2016 - ` 246.44 crore, 1st April, 2015 - ` 213.23 crore) in respect of Electricity
Receivables.
7.1
Trade Receivables
The Group has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.
The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected credit
loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix
at the end of the reporting period is as follows:
Ageing
Within the credit period
1-90 days past due
91-182 days past due
More than 182 days past due
Age of receivables
Expected Credit loss (%)
0.09%
1.00%
2.56%
14.10%
Within the credit period .....................................................................................
1-90 days past due ...............................................................................................
91-182 days past due ..........................................................................................
More than 182 days past due ...........................................................................
Movement in the expected credit loss allowance
As at
31st March, 2017
` crore
1,972.76
807.88
731.28
824.94
As at
31st March, 2016
` crore
2,144.88
682.02
456.22
718.22
As at
1st April, 2015
` crore
2,002.16
787.62
316.88
616.38
Balance at the beginning of the year .........................................................................................................
Movement in expected credit loss allowance on trade receivables calculated at lifetime
expected credit losses ..........................................................................................................................................
Add: Specific allowance on trade receivables for the year $ ..................................................................
Balance at the end of the year .......................................................................................................................
As at
31st March, 2017
` crore
271.10
As at
31st March, 2016
` crore
184.53
23.18
22.54
316.82
17.00
69.57
271.10
$ Certain Trade Receivables have been unable to make payments for outstanding amounts as the amounts are disputed. Consequently the
management believes it is prudent to provide for the specific allowance.
The concentration of credit risk is very limited due to the fact that the large customers are mainly government entities and remaining
customer base is large and widely dispersed and secured with adequate security deposit.
Consolidated Financials I 209
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
8.
Loans
(Unsecured unless otherwise stated)
Non-current
Loans to Related Parties - Joint Ventures
Considered good ...........................................................................
Considered doubtful ....................................................................
Less: Allowances for Doubtful Loans .......................................
Other Loans
Loans to Employees ......................................................................
Total ...........................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
69.64
1.27
70.91
1.27
69.64
7.52
77.16
382.63
1.27
383.90
1.27
382.63
7.74
390.37
386.55
1.27
387.82
1.27
386.55
8.64
395.19
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Current
Considered good
Loans to Related Parties - Joint Ventures ..............................
Loans to Employees ......................................................................
Total ...........................................................................................................
654.68
0.76
655.44
410.04
0.23
410.27
254.41
0.64
255.05
9.
Finance Lease Receivable - Unsecured
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current
Finance Lease Receivable ...................................................................
Total ...........................................................................................................
573.47
573.47
617.63
617.63
661.09
661.09
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Current
Finance Lease Receivable ...................................................................
Total ...........................................................................................................
39.16
39.16
48.80
48.80
42.51
42.51
210 I Consolidated Financials
The Tata Power Company Limited
9.1 Leasing Arrangements
Notes to the Consolidated Financial Statements
The Group has entered into Power Purchase Agreements (PPA) with a customer for its assets located at Jojobera. The
assets relate to 30 years of take or pay agreements with the customer to supply electricity at a fixed plus variable charge.
The customer, during the term of the PPAs has a right to purchase the assets and at the end of the contract is obligated to
purchase same on the basis of the valuation determined under the PPAs. This arrangement analysis pursuant to ‘Appendix C’ to
Ind AS 17 “Leases” identified an embedded finance lease and accordingly, the said arrangement has been accounted as per
Ind AS 17.
9.2 Amount receivable under Finance Lease
Minimum Lease Payments
Present value of minimum lease
payments
As at
31st March,
2017
` crore
As at
31st March,
2016
` crore
As at
1st April,
2015
` crore
As at
31st March,
2017
` crore
As at
31st March,
2016
` crore
As at
1st April,
2015
` crore
Not later than one year ......................................................
107.58
138.42
139.06
23.37
48.73
43.10
Later than one year and not later than five years ....
504.71
512.42
550.35
133.47
123.14
142.10
Later than five years ............................................................
795.49
900.42
994.99
455.79
494.56
518.40
1,407.78
1,551.26
1,684.40
612.63
666.43
703.60
Unearned finance income .................................................
795.15
884.83
980.80
Nil
Nil
Nil
Present value of minimum
lease payments
receivable ................................................................................
612.63
666.43
703.60
612.63
666.43
703.60
Allowance for uncollectible lease payments ..............
Nil
Nil
Nil
Nil
Nil
Nil
Total .........................................................................................
612.63
666.43
703.60
612.63
666.43
703.60
The interest rate inherent in the leases is fixed at the contract for the entire lease term. The average effective interest rate
contracted is approximately in the range of 12.76% - 16.34% per annum (as at 31st March, 2016: 12.76% - 16.34% per annum, as
at 1st April, 2015: 12.76% - 16.34% per annum).
Consolidated Financials I 211
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 10. Other Financial Assets
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current
(i) Accruals
Unsecured, considered good
Interest Accrued on Loans to Related Parties .......
(ii) Security Deposits
Unsecured, considered good .............................................
Doubtful ....................................................................................
Less: Allowance for Doubtful Deposits ...........................
(iii) Receivables under Service Concession Agreement ....
(iv) Others
Unsecured, considered good
Regulatory Assets other than Distribution Business
Advance towards Equity ..............................................
Other Advances [Refer Note 34 (iv)] ........................
Total ...........................................................................................................
Current
(i) Accruals
Unsecured, considered good
Interest Accrued on Inter-corporate/Bank Deposits
Interest Accrued on Investments ..............................
Interest Accrued on Finance Lease Receivable ....
Interest Accrued on Loans to Related Parties .......
(ii) Security Deposits
Unsecured, considered good .............................................
Doubtful ....................................................................................
Less: Allowance for Doubtful Deposits ...........................
(iii) Inter-corporate Deposits
Unsecured, considered good .............................................
(iv) Receivables under Service Concession Agreement ....
(v) Others
Unsecured, considered good
Regulatory Assets other than Distribution Business
Dividend Receivable ......................................................
Derivative Contracts ......................................................
Receivable on sale of Current Investments ...........
Receivable on sale of Fixed Assets ...........................
Insurance Claims Receivable ......................................
Other Advances ...............................................................
Total ...........................................................................................................
Nil
60.16
32.81
92.97
32.81
60.16
203.94
460.09
9.03
139.46
608.58
872.68
2.35
5.09
11.73
11.98
31.15
22.13
2.93
25.06
2.93
22.13
Nil
4.48
710.04
Nil
37.97
Nil
2.23
21.15
84.25
855.64
913.40
Nil
56.07
30.31
86.38
30.31
56.07
Nil
609.75
Nil
1.59
611.34
667.41
5.07
6.20
12.08
8.63
31.98
16.05
1.37
17.42
1.37
16.05
44.00
Nil
196.99
8.64
92.71
1.26
0.53
36.40
82.93
419.46
511.49
0.21
71.41
23.02
94.43
23.02
71.41
Nil
950.76
Nil
2.87
953.63
1,025.25
5.54
6.60
12.66
4.21
29.01
13.02
1.15
14.17
1.15
13.02
310.65
Nil
36.43
Nil
128.21
12.54
Nil
66.78
3.09
247.05
599.73
212 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
11. Tax Assets
Non-current Tax Assets
Advance Income-tax (Net) ..........................................................
Total ...........................................................................................................
Current Tax Assets
Advance Income-tax (Net) ..........................................................
Total ...........................................................................................................
12 a. Deferred Tax Assets (Net)
Deferred Tax Assets ...............................................................................
Deferred Tax Liabilities ........................................................................
Total - Net Deferred Tax Assets .....................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
146.35
146.35
31.68
31.68
110.61
110.61
3.00
3.00
151.19
151.19
3.00
3.00
As at
31st March, 2017
` crore
5,133.67
5,042.14
91.53
As at
31st March, 2016
` crore
3,760.53
3,757.33
3.20
As at
1st April, 2015
` crore
2,711.27
2,708.70
2.57
2016-17
Deferred tax assets in relation to:
Allowance
for Doubtful Debts,
Deposits and Advances .......................
Provision for Employee Benefits,
Entry Tax and Others .................................
Unabsorbed Depreciation ...................
Measuring of Derivative Financial
Instruments at Fair Value ....................
Carry Forward Losses ...........................
Investment Properties .........................
Investments at Fair Value ....................
Borrowings...............................................
Tax Credit ..................................................
Others ........................................................
Deferred tax liabilities in relation
to:
Property, Plant and Equipments ......
Investments at Fair Value ....................
Measuring of Derivative Financial
Instruments at Fair Value ....................
Net Deferred Tax Assets
Opening
Balance
Acquired
during the
year (Refer
Note 45)
Recognised
in Profit or
Loss
Recognised
in Other
Comprehen-
sive Income
Recognised
directly in
Equity
47.36
Nil
30.43
9.97
3,665.61
27.68
Nil
2.91
Nil
Nil
Nil
7.00
3,760.53
3,729.00
0.50
27.83
3,757.33
3.20
Nil
25.91
Nil
36.13
Nil
Nil
Nil
Nil
Nil
62.04
25.22
0.02
Nil
25.24
36.80
19.10
466.17
76.46
3.72
Nil
0.54
3.47
707.54
3.67
1,311.10
1,283.32
(0.46)
(23.29)
1,259.57
51.53
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
` crore
Closing
Balance
77.79
29.07
4,157.69
104.14
39.85
2.91
0.54
3.47
707.54
10.67
5,133.67
5,037.54
0.06
4.54
5,042.14
91.53
Consolidated Financials I 213
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 12 a. Deferred Tax Assets (Net) (Contd.)
Notes to the Consolidated Financial Statements
2015-16
Deferred Tax Assets in relation to:
Allowance for Doubtful Debts, Deposits and
Advances .......................................................................
Provision for Employee Benefits, Entry Tax and
Others .............................................................................
Measuring of Derivative Financial Instruments
at Fair Value...................................................................
Unabsorbed Depreciation .......................................
Investment Properties ..............................................
Tax Credit .......................................................................
Others .............................................................................
Deferred Tax Liabilities in relation to:
Property, Plant and Equipments ...........................
Investments at Fair Value .........................................
Measuring of Derivative Financial Instruments
at Fair Value...................................................................
Net Deferred Tax Assets ........................................
Opening
Balance
Acquired
during the
year
Recognised
in Profit or
Loss
Recognised
in Other
Comprehen-
sive Income
Recognised
directly in
Equity
17.37
7.77
27.39
2,648.99
2.72
Nil
7.03
2,711.27
2,670.50
0.58
37.62
2,708.70
2.57
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
29.99
2.20
0.29
1,016.62
0.19
Nil
(0.03)
1,049.26
1,058.50
(0.08)
(9.79)
1,048.63
0.63
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
` crore
Closing
Balance
47.36
9.97
27.68
3,665.61
2.91
Nil
7.00
3,760.53
3,729.00
0.50
27.83
3,757.33
3.20
12 b. Deferred Tax Liabilities (Net)
Deferred Tax Assets ...........................................................................
Deferred Tax Liabilities ....................................................................
Total - Net Deferred Tax Liabilities..............................................
As at
31st March, 2017
` crore
89.59
As at
31st March, 2016
` crore
137.12
As at
1st April, 2015
` crore
133.95
1,849.42
1,759.83
2,233.98
2,096.86
2,073.75
1,939.80
` crore
Closing
Balance
Opening
Balance
Acquired
during the
year (Refer
Note 45)
Recognised
in Profit or
Loss
Recognised
in Other
Comprehen-
sive Income
Recognised
directly in
Equity
40.47
90.52
4.48
1.65
137.12
Nil
Nil
Nil
Nil
Nil
(10.72)
(37.13)
(2.39)
(1.65)
(51.89)
Nil
4.36
Nil
Nil
4.36
Nil
Nil
Nil
Nil
Nil
29.75
57.75
2.09
Nil
89.59
2016-17
Deferred tax assets in relation to:
Allowance for Doubtful Debts, Deposits and
Advances .......................................................................
Provision for Employee Benefits, Entry Tax and
Others .............................................................................
Tax Credit .......................................................................
Others .............................................................................
214 I Consolidated Financials
The Tata Power Company Limited 12 b. Deferred Tax Liabilities (Net) (Contd.)
Notes to the Consolidated Financial Statements
2016-17
Deferred tax liabilities in relation to:
Finance Leases .............................................................
Property, Plant and Equipments (Refer Note
below) ............................................................................
Investments at Fair Value .........................................
Distribution on Perpetual Bonds ............................
Borrowings....................................................................
Undistributable Profit ...............................................
Revaluation on Consolidation ...............................
Net Deferred Tax Liabilities .................................
Notes:
Opening
Balance
Acquired
during the
year (Refer
Note 45)
Recognised
in Profit or
Loss
Recognised
in Other
Comprehen-
sive Income
Recognised
directly in
Equity
` crore
Closing
Balance
142.21
Nil
2.27
Nil
Nil
144.48
2,021.23
23.43
24.20
6.20
16.71
Nil
2,233.98
2,096.86
34.83
Nil
Nil
Nil
Nil
235.82
270.65
270.65
(641.79)
2.72
Nil
(1.16)
(11.24)
(6.35)
(655.55)
(603.66)
Nil
(0.12)
Nil
Nil
Nil
Nil
(0.12)
(4.48)
Nil
Nil
0.46
Nil
Nil
Nil
0.46
0.46
1,414.27
26.03
24.66
5.04
5.47
229.47
1,849.42
1,759.83
1. During the year ended 31st March, 2017, the Group has reassessed the deferred tax liabilities in respect of its units
falling under tax holiday period having regard to (a) favourable order passed by the Dispute Resolution Panel (DRP)
pursuant to the Order issued by the Hon’ble Supreme Court in respect of another assessee and (b) the Circular
issued by the Central Board of Direct Taxes in this regard and has reversed deferred tax liabilities amounting to
` 180.85 crore.
2. During the year ended 31st March, 2017, the Group has created Deferred Tax Asset of ` 569.53 crore for Minimum
Alternate Tax (MAT) credit and correspondingly ` 569.53 crore is passed on to Consumers and reflected as
Regulatory Income/(Expense) (Net).
2015-16
Opening
Balance
Acquired
during the
year
Recognised
in Profit or
Loss
Recognised
in Other
Comprehen-
sive Income
Recognised
directly in
Equity
Deferred Tax Assets in relation to:
Allowance for Doubtful Debts, Deposits and
Advances .......................................................................
Provision for Employee Benefits, Entry Tax and
Others .............................................................................
Property, Plant and Equipments ...........................
Borrowings....................................................................
Tax Credit .......................................................................
Others .............................................................................
Deferred Tax Liabilities in relation to:
Finance Leases .............................................................
Property, Plant and Equipments ...........................
Investments at Fair Value .........................................
Distribution on Perpetual Bonds ............................
Borrowings....................................................................
Undistributable Profit ...............................................
Net Deferred Tax Liabilities .................................
40.26
91.81
0.19
0.10
Nil
1.59
133.95
147.34
1,856.78
20.88
24.20
7.19
17.36
2,073.75
1,939.80
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
0.21
(4.14)
(0.19)
(0.10)
4.48
0.06
0.32
(5.13)
164.45
(1.63)
Nil
(0.99)
(0.65)
156.05
155.73
Nil
2.85
Nil
Nil
Nil
Nil
2.85
Nil
Nil
4.18
Nil
Nil
Nil
4.18
1.33
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
` crore
Closing
Balance
40.47
90.52
Nil
Nil
4.48
1.65
137.12
142.21
2,021.23
23.43
24.20
6.20
16.71
2,233.98
2,096.86
Consolidated Financials I 215
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
12 c. Unrecognised Deferred Tax Assets
Notes to the Consolidated Financial Statements
Unabsorbed Depreciation ..................................................................
Total ...........................................................................................................
2,767.11
2,767.11
1,546.46
1,546.46
3,558.67
3,558.67
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Note :
Unrecognised Deferred Tax Assets on unabsorbed depreciation do not have an expiry.
12 d. Reconciliation of Deferred Tax Expense amount recognised in profit or loss and Other Comprehensive Income
Recognised in Profit
or Loss
Recognised in Other
Comprehensive Income
Recognised directly
in Equity
For the
year ended
31st March,
2017
` crore
For the
year ended
31st March,
2016
` crore
For the
year ended
31st March,
2017
` crore
For the
year ended
31st March,
2016
` crore
For the
year ended
31st March,
2017
` crore
For the
year ended
31st March,
2016
` crore
Deferred Tax Assets (Net) - (Refer Note 12a.)
Net (increase)/decrease in Deferred Tax Assets ....
(51.53)
(0.63)
Nil
Nil
Nil
Deferred Tax Liabilities (Net) - (Refer Note 12b.)
Net increase/(decrease) in Deferred Tax Liabilities ..
(603.66)
Deferred Tax Expense (Net) ......................................
(655.19)
155.73
155.10
(4.48)
(4.48)
1.33
1.33
0.46
0.46
Nil
Nil
Nil
13. Other Assets
Non-current
(i) Capital Advances
Unsecured, considered good .............................................
Doubtful ....................................................................................
Less: Allowances for Doubtful Advances .......................
(ii) Security Deposits
Unsecured, considered good .............................................
(iii) Balances with Government Authorities
Unsecured, considered good
Advances ...........................................................................
Amount paid under protest ........................................
VAT/Sales Tax Receivable .............................................
Carried over …
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
121.04
0.21
121.25
0.21
121.04
228.77
143.58
217.41
82.72
443.71
793.52
363.07
0.24
363.31
0.24
363.07
229.82
116.15
217.38
112.43
445.96
314.52
0.72
315.24
0.72
314.52
228.68
116.12
217.42
139.90
473.44
1,038.85
1,016.64
216 I Consolidated Financials
The Tata Power Company Limited
13. Other Assets (Contd.)
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Brought forward …
793.52
1,038.85
1,016.64
(iv) Unamortised Premium for Leasehold Land
Unsecured, considered good .............................................
659.78
662.66
677.20
(v) Deferred Rent Expense
Unsecured, considered good .............................................
9.51
9.65
9.80
(vi) Others
Unsecured, considered good
Prepaid Expenses ............................................................
Others .................................................................................
Doubtful .............................................................................
Less: Allowances for Doubtful Advances ................
11.44
33.30
2.22
46.96
2.22
44.74
17.54
25.27
2.15
44.96
2.15
42.81
21.80
11.30
4.29
37.39
4.29
33.10
Total ......................................................................................................................
1,507.55
1,753.97
1,736.74
Current
(i) Balances with Government Authorities
Unsecured, considered good
Advances ...........................................................................
VAT/Sales Tax Receivable .............................................
(ii) Unamortised Premium for Leasehold Land
Unsecured, considered good .............................................
(iii) Others
Unsecured, considered good
Prepaid Expenses ............................................................
Advances to Vendors .....................................................
Deferred Rent Expense .................................................
Power Banking Receivable ..........................................
Other Advances ...............................................................
Others .................................................................................
Doubtful .............................................................................
Less: Allowances for Doubtful Advances ................
Total ......................................................................................................................
31.19
34.90
66.09
20.94
76.56
266.73
0.14
116.74
32.96
2.81
1.57
497.51
1.57
495.94
582.97
84.62
0.16
84.78
19.22
62.53
231.99
0.14
470.36
63.85
0.15
1.95
830.97
1.95
829.02
933.02
67.25
1.16
68.41
19.12
107.24
244.12
0.14
137.72
30.51
0.48
4.18
524.39
4.18
520.21
607.74
Consolidated Financials I 217
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
14.
Inventories
Notes to the Consolidated Financial Statements
Inventories (lower of cost and net realisable value)
(a) Raw Materials
Fuel - Stores ..............................................................................
Fuel-in-Transit ..........................................................................
Others .........................................................................................
(b) Work-In-Progress .........................................................................
(c) Finished goods and semi-finished goods ........................
(d) Stores and Spares
Stores and Spare Parts ..........................................................
Stores-in-Transit ......................................................................
(e) Loose Tools .....................................................................................
(f) Others
Property under Development ...........................................
Total ......................................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
575.00
260.64
158.76
29.71
110.13
382.96
4.44
1.22
508.03
180.24
139.69
16.77
88.76
361.69
15.18
0.66
613.29
187.86
104.74
3.87
119.70
336.43
13.69
0.71
76.70
1,599.56
62.38
1,373.40
49.91
1,430.20
During the year ended 31st March, 2017 the Group has recognised ` 62.74 crore (31st March, 2016 - ` Nil) as an expense for
inventories carried at net realisable value.
15. Current Investments
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
` crore
` crore
` crore
I
Investments carried at Amortised Cost
(i) Statutory Investments
Contingency Reserve Fund Investments
Government Securities (Unquoted)
7.49% GOI (2017) .............................................................
7.99% GOI (2017) .............................................................
7,36,000
8,48,700
Nil
Nil
7.59% GOI (2016) .............................................................
Nil
19,000
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
6.25% GOI (2018) .............................................................
7.49% GOI (2017) .............................................................
7.99% GOI (2017) .............................................................
15,00,000
25,00,000
33,49,300
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
100
100
100
100
100
100
(ii) Other Investments
Government Securities (Unquoted)
8.07% GOI (2017) .............................................................
Nil
3,000
Nil
100
Carried over …
7.36
8.49
Nil
15.85
15.00
25.00
33.49
73.49
Nil
89.34
89.34
Nil
Nil
0.19
0.19
Nil
Nil
Nil
Nil
0.03
0.22
0.22
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
218 I Consolidated Financials
The Tata Power Company Limited
15. Current Investments (Contd.)
Notes to the Consolidated Financial Statements
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
` crore
89.34
` crore
` crore
0.22
Nil
II
Brought forward …
Investments carried at Fair Value through Profit and Loss
(a) Investment in Equity Shares fully Paid-up (unless
otherwise stated) (Quoted)
Cairn India Limited .................................................................
Coal India Limited ..................................................................
Infosys Technologies Limited .............................................
NTPC Limited ...........................................................................
Oil & Natural Gas Corporation Limited ...........................
Reliance Industries Limited .................................................
State Bank of India .................................................................
National Hydroelectric Power Corporation Limited ........
NMDC Limited .........................................................................
Axis Bank Limited ...................................................................
Bajaj Auto Limited ..................................................................
Cipla Limited ............................................................................
Hindalco Industries Limited ................................................
Infrastructure Development Finance Company
Limited .......................................................................................
IDFC Bank Limited ..................................................................
Larsen & Toubro Limited ......................................................
Mahindra & Mahindra Limited ...........................................
Sun Pharmaceuticals Limited .............................................
Bharat Forge Limited .............................................................
ICICI Bank Limited ..................................................................
ITC Limited ................................................................................
Thermax Limited .....................................................................
HDFC Bank Limited ................................................................
Elcot Power Controls Limited .............................................
Bharat Heavy Electricals Limited .......................................
CESC Limited ............................................................................
Gujarat Industries Power Company Limited .................
GVK Power & Infrastructure Limited ................................
Indowind Energy Limited ....................................................
Jaiprakash Power Venture Limited ...................................
Jindal Steel & Power Limited ..............................................
KEC International Limited ....................................................
Kirloskar Electric Limited .....................................................
Neyveli Lignite Limited .........................................................
Power Finance Corporation Limited ................................
Reliance Infrastructure Limited .........................................
Torrent Cables Limited ..........................................................
4,760
18,003
12,784
2,49,852
1,08,300
20,900
2,57,000
10,248
1,66,660
34,150
1,150
3,750
68,000
38,500
38,500
6,300
11,800
9,800
6,500
14,000
12,000
6,000
17,300
1,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4,760
18,003
3,584
2,49,852
72,200
20,900
2,57,000
10,248
1,66,660
34,150
1,150
3,750
68,000
38,500
38,500
6,300
11,800
9,800
6,500
14,000
8,000
6,000
17,300
1,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
4,760
18,003
1,792
2,49,852
13,200
20,900
2,45,000
10,248
1,66,660
5,300
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,000
500
100
100
1000
100
100
300
220
100
100
100
100
2
10
10
5
10
5
10
1
10
1
2
10
2
1
10
10
2
5
1
2
2
1
2
2
10
2
10
10
1
10
10
1
2
10
10
10
10
10
0.15
0.53
1.31
4.15
2.00
2.76
7.53
0.03
2.22
1.68
0.32
0.22
1.33
0.21
0.23
0.99
1.52
0.67
0.68
0.39
0.34
0.59
2.50
*
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
32.35
0.07
0.53
0.44
3.22
1.55
2.18
4.99
0.02
1.63
1.52
0.28
0.19
0.60
0.16
0.19
0.77
1.43
0.80
0.57
0.33
0.26
0.46
1.85
*
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
24.04
0.10
0.66
0.40
3.67
0.41
1.73
6.54
0.02
2.15
0.30
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
*
0.01
0.01
*
*
*
*
*
*
*
*
*
*
*
16.00
(b) Investments in Debentures or Bonds (Quoted)
8.49% Non Convertible Debentures- NTPC Limited
2,49,852
2,49,852
2,49,852
12.50
Carried over …
0.31
32.66
122.00
0.31
24.35
24.57
0.31
16.31
16.31
Consolidated Financials I 219
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
15. Current Investments (Contd.)
Notes to the Consolidated Financial Statements
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
` crore
32.66
` crore
24.35
` crore
16.31
(c)
Investment in Mutual Funds (Unquoted)
Brought forward …
Axis Liquid Fund - Direct Growth - CFDG ..............................
Axis Liquid Fund - Growth ..........................................................
Axis Liquid Fund - Direct - Growth ...........................................
Axis Treasury Advantage Fund - Direct Growth ..................
Baroda Pioneer Liquid Fund - Plan B - Direct .......................
Birla Sun Life Cash Plus - Growth - Direct Plan.....................
BSL - CashPlus - Growth - Indusind ..........................................
DHFL Pramerica Insta Cash Plus - Direct - Growth .............
DSP Blackrock Liquidity Fund - IP - Growth ..........................
DSP Blackrock Liquidity Fund - Direct - Growth ..................
DSP Blackrock Ultra Short Term Fund Direct Plan
-Growth ..............................................................................................
HDFC Cash Mangement Plan Fund - Growth .......................
ICICI Prudential - Growth .............................................................
Invesco India Liquid Fund - Direct Plan - Growth ...............
ICICI Prudential Liquid Direct Plan - Growth ........................
ICICI Prudential Liquid Regular Growth .................................
ICICI-Pru-Saving Fund - Growth ................................................
JM High Liquidity Fund - Direct Growth Option .................
JM High Liquidity - Growth.........................................................
Kotak Liquid - Growth...................................................................
LIC MF Liquid Fund - Direct - Growth Plan - LICLF .............
LIC Nomura Liquidity Fund - Growth ......................................
Religare Invesco Liquid Fund - Direct Plan - Growth .........
Religare Invesco Liquid Fund - Growth ..................................
SBI Premier Liquid Fund - Growth ............................................
SBI Premier Liquid Fund- Direct Plan - Growth ....................
Sundaram Money Fund - Direct ................................................
Sundaram Money Fund - Growth .............................................
Tata Floater - Direct Plan Growth..............................................
Tata Money Market Fund - Direct Plan - Growth .................
Tata Money Market Fund- Growth ...........................................
Tata Liquid Super High Investment Fund - Growth ...........
Tata Liquid Fund Direct Plan - Daily Dividend .....................
Tata Liquid Fund Plan A - Daily Dividend ..............................
UTI Liquid Fund - Cash Plan - Growth .....................................
Nil
Nil
4,14,090
1,28,437
88,860
23,08,818
18,11,486
Nil
Nil
1,27,503
20,50,354
Nil
Nil
4,86,627
6,23,445
Nil
8,68,213
3,43,28,651
Nil
Nil
9,210
Nil
3,17,906
Nil
Nil
5,44,947
1,60,64,421
Nil
1,83,598
1,89,145
Nil
61,954
8,264
1,40,249
Nil
6,550
43,826
Nil
Nil
Nil
Nil
Nil
2,46,433
42,926
Nil
Nil
71,657
10,23,387
Nil
Nil
18,73,923
Nil
Nil
34,52,312
780
Nil
23,981
Nil
186,787
95,324
Nil
Nil
Nil
Nil
Nil
94,974
1,27,601
72,869
1,37,151
73,931
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,15,003
Nil
Nil
Nil
Nil
Nil
Nil
13,53,417
Nil
55,234
25,17,814
Nil
Nil
Nil
72,771
8,71,307
Nil
Nil
Nil
1,97,14,661
Nil
54,228
Nil
1,35,199
53,786
1,17,111
34,441
(d)
Investment in Mutual Funds (FMP) (Unquoted)
Tata FMP - Series 44 - Scheme B - Growth .............................
Tata FMP - Series 46 - Scheme A - Growth.............................
Tata FMP - Series 45 - Scheme D - Growth ............................
Nil
Nil
Nil
1,19,51,664
31,68,325
13,01,188
Nil
Nil
Nil
10
10
10
Total ......................................................................................................................
Notes:
1. Aggregate Market Value of Quoted Investments ............
2. Aggregate Carrying Value of Quoted Investments .........
3. Aggregate Carrying Value of Unquoted Investments ...
220 I Consolidated Financials
Nil
Nil
74.68
23.71
16.62
60.33
47.34
Nil
Nil
29.66
2.44
Nil
Nil
108.96
15.02
Nil
21.86
152.82
Nil
Nil
2.72
Nil
71.17
Nil
Nil
139.09
55.09
Nil
45.56
48.48
Nil
18.57
0.92
40.74
Nil
975.78
Nil
Nil
Nil
Nil
1,008.44
1,097.78
32.66
32.66
1,065.12
1.10
7.35
Nil
Nil
Nil
Nil
Nil
4.85
9.28
Nil
Nil
22.74
22.83
Nil
Nil
40.03
Nil
Nil
14.27
0.29
Nil
6.57
Nil
38.87
22.69
Nil
Nil
Nil
Nil
Nil
22.68
35.67
8.12
15.29
18.31
290.94
15.02
3.85
1.57
20.44
335.73
335.95
24.35
24.35
311.60
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
22.99
Nil
Nil
Nil
Nil
Nil
Nil
28.00
Nil
14.01
9.61
Nil
Nil
Nil
14.00
167.66
Nil
Nil
Nil
58.19
Nil
14.01
Nil
34.93
5.99
13.05
7.88
390.32
Nil
Nil
Nil
Nil
406.63
406.63
16.31
16.31
390.32
The Tata Power Company Limited
16 a. Cash and Cash Equivalents
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
(i) Balances with Banks:
In Current Accounts...............................................................
In Deposit Accounts (with original maturity less
than three months) ...............................................................
(ii) Cheques on Hand ..........................................................................
(iii) Cash on Hand ..................................................................................
Cash and Cash Equivalents as per Balance Sheet ...............
Bank Overdraft (Refer Note 26) ........................................................
Cash and Cash Equivalents as per Statement of Cash Flows
459.91
349.29
23.60
2.42
835.22
(16.64)
818.58
495.44
80.72
35.86
1.13
613.15
(373.36)
239.79
555.98
390.68
29.25
1.32
977.23
(163.89)
813.34
16 b. Other Balances with Banks
In Deposit Accounts ......................................................................
(i)
(ii) In Earmarked Accounts-
Unpaid Dividend Account ..................................................
Total ......................................................................................................................
17. Assets classified as held for sale
Freehold Land (i) ....................................................................................
Property, Plant and Equipment (ii) ..................................................
Investments carried at Fair Value through Other
Comprehensive Income (iii) ...............................................................
Investments in Joint Ventures and Associates (iv) .....................
Liabilities associated with assets held for sale .....................
As at
31st March, 2017
` crore
106.46
As at
31st March, 2016
` crore
38.54
As at
1st April, 2015
` crore
52.67
12.62
119.08
11.47
50.01
11.60
64.27
As at
31st March, 2017
` crore
15.83
24.68
As at
31st March, 2016
` crore
Nil
Nil
As at
1st April, 2015
` crore
Nil
Nil
195.21
1,683.75
1,919.47
Nil
Nil
1,122.24
1,122.24
Nil
Nil
1,046.57
1,046.57
Nil
(i) (a) The Group had a power generation unit at Belgaum, Karnataka. Operations at the unit have been discontinued on 28th
February, 2013 with conclusion of Power Purchase Agreement with the customers. The Group has disposed of majority
of the assets located at the unit and is in the process of disposing of the Freehold Land. During the year ended 31st
March, 2017, the Group has reclassified the said land as asset held for sale. No impairment loss has been recognised
on reclassification as the Group expects that the fair value (estimated based on the recent market prices of similar
properties in similar locations) less costs to sell is higher than the carrying amount of ` 2.90 crore as at 31st March, 2017.
(b) The Group was in the process of setting up a thermal power generation unit in Jharkhand State and accordingly had
acquired Freehold Land at Tiruldih. Coal for the unit was planned to be sourced from Tubed coal block in Latehar district.
However, in 2014, the Hon’ble Supreme Court de-allocated the said coal block. As a result, the project was left with
no fuel supply and has become unviable. Hence, the Group has decided to dispose of the Freehold Land at Tiruldih.
During the year ended 31st March, 2017, the Group has reclassified the said land as asset held for sale. Accordingly, the
Freehold Land is being carried in the books at its fair value less cost to sell of ` 9.72 crore (i.e. fair value estimated based
on market price of similar properties near the location less costs to sell the land) resulting in the recognition of ` 34 crore
as impairment loss in the statement of profit and loss.
Consolidated Financials I 221
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
17. Assets classified as held for sale (Contd.)
Notes to the Consolidated Financial Statements
(i) (c) The Group has ceased power generation at Diesel (DG set) based unit at Vadaval, Maharashtra and has disposed of the
DG sets. The Group is in the process of disposing Freehold Land. During the year ended 31st March, 2017, the Group has
reclassified the said Freehold Land at the the said unit as asset held for sale. No impairment loss has been recognised
on reclassification as the Group expects that the fair value (estimated based on the recent market prices of similar
properties in similar locations) less costs to sell is higher than the carrying amount of ` 3.21 crore as at 31st March, 2017.
(ii)
(iii)
The Group has ceased power generation at Unit 4 at Trombay, Maharashtra and has initiated process for disposal of its
assets. During the year ended 31st March, 2017, the Group has reclassified Property, Plant and Equipment at the said
unit as asset held for sale. No impairment loss has been recognised on reclassification as the Company expects that the
estimated fair value less costs to sell is higher than the carrying amount of ` 24.68 crore as at 31st March, 2017.
The Group decided to divest certain portion of its investments carried at fair value through other comprehensive income
in Tata Teleservices (Maharashtra) Limited and Indian Energy Exchange Limited. Hence, the said investments have been
classified as held for sale at fair value of ` 195.21 crore as at 31st March, 2017.
(iv)(a) The Group had entered into an agreement for sale of shares in PT Arutmin Indonesia and its associated infrastructure and
trading companies for an aggregate consideration of USD 510 million. Consequent to certain closing adjustments to the
sale consideration and other changes agreed between the parties, the Group has signed revised definitive agreements
during the year ended 31st March, 2017. The sale consideration has been revised to USD 400.92 million expected to
be received in a phased manner over next few years. Accordingly, the investments (including the investment in PT
Mitratama Perkasa reclassified as held for sale during the year ended 31st March, 2017) have been classified as assets
held for sale at ` 1,673.30 crore (31st March, 2016 - ` 1,122.24 crore, 1st April, 2015 - ` 1,046.57 crore).
(iv)(b) The Group holds investment in Nelito Systems Limited (Nelito), an Associate company. During the year ended 31st
March, 2017, the Group has sold part of the investment at ` 185/- per share and decided to sell its entire share holding.
Accordingly, balance investment of ` 10.45 crore as at 31st March, 2017 has been classified and disclosed as Assets
classified as held for sale at ` 185/- per share representing last sale price.
18. Regulatory Deferral Accounts
Regulatory Deferral Account - Liability
Regulatory Liabilities............................................................................
Total ....................................................................................
Regulatory Deferral Account - Asset
Regulatory Assets ..................................................................................
Total ....................................................................................
Rate Regulated Activities:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
656.00
656.00
6,481.35
6,481.35
680.38
680.38
7,334.28
7,334.28
18.36
18.36
7,677.16
7,677.16
(i) As per the Ind AS-114 ‘Regulatory Deferral Accounts’ the business of electricity distribution is a Rate Regulated activity
wherein the regulators determine Tariff to be charged from consumers based on prevailing regulations in place.
The Multi Year Tariff (MYT) Regulations issued by respective State Regulators is applicable to the Group’s distribution
business. According, to these regulations, the regulators shall determine tariff in a manner in which the Group can
recover its fixed and variable costs including assured rate on return approved equity base, from its consumers. The Group
determines the Revenue, Regulatory Assets and Liabilites as per the terms and conditions specified in respective MYT
Regulations.
222 I Consolidated Financials
The Tata Power Company Limited
18. Regulatory Deferral Accounta (Contd.)
Notes to the Consolidated Financial Statements
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March,
2017, and 31st March, 2016 is as follows:
Opening Regulatory Assets net of Liabilities .....................................................................
Regulatory Income/(Expenses) during the year
(i) Power Purchase Cost ..........................................................................................................
(ii) Other expenses as per the terms of Tariff Regulations including ROE
(iii) Collected during the year as per approved Tariff .....................................................
Regulatory Expenses (net) (i + ii + iii) ....................................................................................
Regulatory Income/(Expenses) (net) in respect of earlier years ..................................
Expenses on account of Rate Regulated Activities .........................................................
Carrying cost recognised in the Statement of Profit and Loss relating to
uncollected amounts ..................................................................................................................
Amount Collected (net) in respect of earlier years...........................................................
Closing Regulatory Asset ...........................................................................................................
Regulatory Assets ......................................................................................................................
Regulatory Liabilities ...............................................................................................................
Total .................................................................................................................................................
(A)
(B)
(C)
(D)
(A + B + C + D)
As at
31st March, 2017
` crore
6,653.90
As at
31st March, 2016
` crore
7,658.80
7,368.48
1,820.31
(9,875.25)
(686.46)
77.00
(609.46)
103.16
(322.25)
5,825.35
6,481.35
(656.00)
5,825.35
7,311.45
2,530.09
(10,649.51)
(807.97)
(167.27)
(975.24)
219.72
(249.38)
6,653.90
7,334.28
(680.38)
6,653.90
19 a. Equity - Share Capital
As at 31st March, 2017
` crore
Number
As at 31st March, 2016
` crore
Number
As at 1st April, 2015
` crore
Number
Authorised
Equity Shares of ` 1/- each .............................................................................
Cumulative Redeemable Preference Shares of ` 100/- each ............
300,00,00,000
2,29,00,000
300,00,00,000
2,29,00,000
300.00
229.00
529.00
300.00
229.00
529.00
300,00,00,000
2,29,00,000
300.00
229.00
529.00
Issued
Equity Shares [including 28,32,060 shares (31st March, 2016 -
29,76,172 shares, 1st April, 2015 - 29,80,316 shares) not allotted
but held in abeyance, 44,02,700 shares cancelled pursuant to a
Court Order and 4,80,40,400 shares of the Company held by the
erstwhile The Andhra Valley Power Supply Company Limited
cancelled pursuant to the Scheme of Amalgamation sanctioned
by the High Court of Judicature, Bombay] ...............................................
Subscribed and Paid-up
Equity Shares fully Paid-up [excluding 28,32,060 shares (31st
March, 2016 - 29,76,172 shares, 1st April, 2015 - 29,80,316 shares) not
allotted but held in abeyance, 44,02,700 shares cancelled pursuant
to a Court Order and 4,80,40,400 shares of the Company held by
the erstwhile The Andhra Valley Power Supply Company Limited
cancelled pursuant to the Scheme of Amalgamation sanctioned
by the High Court of Judicature, Bombay] ...............................................
Less: Calls in arrears [including ` 0.01 crore (31st March, 2016 -
` 0.01 crore, 1st April, 2015 ` 0.01 crore) in respect of the
erstwhile The Andhra Valley Power Supply Company Limited
and the erstwhile The Tata Hydro-Electric Power Supply
Company Limited] .................................................................................
Add: Equity Shares forfeited - Amount paid ...........................................
Total Issued, Subscribed and fully Paid-up Share Capital ...........
16,52,300
276,17,00,970
276.17
276,17,00,970
276.17
276,17,00,970
276.17
270,47,73,510
270.48
270,46,29,398
270.46
270,46,25,254
270.46
0.04
270.44
0.06
270.50
16,52,300
0.04
270.42
0.06
270.48
16,52,300
0.04
270.42
0.06
270.48
Consolidated Financials I 223
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
19 a. Equity - Share Capital (Contd.)
(i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
As at 31st March, 2017
` crore
Number
As at 31st March, 2016
` crore
Number
As at 1st April, 2015
` crore
Number
Equity Shares
At the beginning of the year ........................................
Issued during the year ....................................................
Outstanding at the end of the year ...........................
270,62,81,698
1,44,112
270,64,25,810
* Denotes figures below ` 50,000/-.
(ii) Terms/rights attached to Equity Shares
270.48
0.02
270.50
270,62,77,554
4,144
270,62,81,698
270.48
*
270.48
237,47,24,660
33,15,52,894
270,62,77,554
237.33
33.15
270.48
The Company has issued only one class of Equity Shares having a par value of ` 1/- per share. Each holder of Equity
Shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity
Shares held by the shareholders.
(iii) Details of shareholders holding more than 5% shares in the Company
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Number
% Holding
Number
% Holding
Number
% Holding
Equity Shares of ` 1/- each fully paid
Tata Sons Limited .............................................................
83,97,99,682
Life Insurance Corporation of India ...........................
33,22,45,379
Matthews Pacific Tiger Fund.........................................
16,46,20,436
31.05
12.28
6.09
83,97,99,682
36,98,66,780
16,56,20,436
31.05
13.68
6.12
82,18,99,682
35,48,05,781
16,75,45,436
30.39
13.12
6.19
19 b. Unsecured Perpetual Securities
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Unsecured Perpetual Securities .......................................................
Add: Issued during the year ...............................................................
Total ...........................................................................................................
1,500.00
Nil
1,500.00
1,500.00
Nil
1,500.00
1,500.00
Nil
1,500.00
In an earlier year, the Company raised ` 1,500 crore through issue of Unsecured Perpetual Securities (the “Securities”). These
Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company.
The distribution on these Securities are 11.40% with a step up provision if the Securities are not called after 10 years. The
distribution on the Securities may be deferred at the option of the Company, if during the six months preceding the relevant
distribution payment date, the Company has made no payment on, or redeemed or repurchased, any securities ranking pari
passu with, or junior to the instrument. As these Securities are perpetual in nature and ranked senior only to the Share Capital
of the Company and the Company does not have any redemption obligation, these are considered to be in the nature of
equity instruments.
224 I Consolidated Financials
The Tata Power Company Limited
20. Other Equity
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
General Reserve
Opening Balance ...............................................................................................................
Add: Amount transferred from Retained Earnings ...............................................
Closing Balance .................................................................................................................
Securities Premium Reserve
Opening Balance ...............................................................................................................
Add: Share Premium collected during the year .....................................................
Closing Balance .................................................................................................................
Debenture Redemption Reserve
Opening Balance ...............................................................................................................
Add: Amount transferred from Retained Earnings ...............................................
Closing Balance .................................................................................................................
Capital Redemption Reserve ...........................................................................................
Capital Reserve ......................................................................................................................
Special Reserve Fund
Opening Balance ...............................................................................................................
Add: Amount transferred from Retained Earnings ...............................................
Closing Balance .................................................................................................................
Retained Earnings
Opening balance (Refer Note 1 below) ....................................................................
Add: Profit for the year ....................................................................................................
Other Comprehensive Income/(Expense) arising from
Remeasurement of Defined Benefit Obligation (Net of Tax) ..................
Transfer from Equity Instrument through Other Comprehensive
Income (Refer Note 4 below) .............................................................................
Less: Distribution on Unsecured Perpetual Securities (Net of tax) .................
Other Comprehensive Income/(Expense) arising from
Remeasurement of Defined Benefit Obligation (Net of Tax) ..................
Other Appropriations:
Payment of Dividend (Refer Notes 2 and 3 below) ....................................
Tax on Dividend ......................................................................................................
Transfer to Special Reserve Fund (under Sec 45-IA of RBI Act, 1934) ..
Transfer to Debenture Redemption Reserve ...............................................
Transfer to General Reserve................................................................................
Transfer to Non-Controlling Interest ...............................................................
Closing Balance .................................................................................................................
Equity Instrument through Other Comprehensive Income
Opening Balance ...............................................................................................................
Less: Transfer to Retained Earnings (Refer Note 4 below) ..................................
Instruments through Other
Less: Change
Comprehensive Income ......................................................................................
Closing Balance .................................................................................................................
in Fair Value of Equity
Foreign Currency Translation Reserve
Opening Balance ...............................................................................................................
Add: Addition during the year ......................................................................................
Closing Balance .................................................................................................................
Effective Portion of Cash Flow Hedge
Opening Balance ...............................................................................................................
Add/(Less): Effective Portion of Cash Flow Hedge for the year .........................
Closing Balance .................................................................................................................
Total ..............................................................................................................................................
4,086.53
Nil
4,086.53
5,646.95
0.85
5,647.80
564.71
510.14
1,074.85
15.76
221.30
74.73
28.12
102.85
71.90
745.48
Nil
141.62
112.44
30.25
351.99
0.59
28.12
510.14
Nil
3.11
(149.54)
(77.64)
413.20
(141.62)
(170.85)
100.73
274.44
62.98
337.42
(6.62)
5.99
(0.63)
11,508.97
3,996.37
90.16
4,086.53
5,646.93
0.02
5,646.95
434.66
130.05
564.71
15.76
221.30
70.18
4.55
74.73
90.34
662.20
15.78
4.11
112.18
Nil
351.99
11.60
4.55
130.05
90.16
Nil
(18.44)
71.90
725.41
(4.11)
(308.10)
413.20
Nil
274.44
274.44
(1.09)
(5.53)
(6.62)
11,362.90
Consolidated Financials I 225
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
20. Other Equity (Contd.)
Notes:
1.
Includes gain on fair valuation of land which is not available for distribution ` 362.34 crore (31st March, 2016 -
` 362.34 crore).
2. On 23rd September, 2016, a dividend of ` 1.30 per share was paid to the holders of fully paid equity shares. In
3.
August, 2015, the dividend paid was ` 1.30 per share.
In respect of the year ended 31st March, 2017, the directors propose a dividend of ` 1.30 per share to be paid on fully
paid shares. This equity dividend is subject to approval at the Annual General Meeting and has not been included
as a liability in the financial statements. The proposed equity dividend is payable to all holders of fully paid equity
shares. The total estimated equity dividend to be paid is ` 351.99 crore.
4. During the year ended 31st March, 2017, the Group has sold certain long-term Investments. The resultant profit of
` 141.62 crore (31st March, 2016 - ` 4.11 crore) has been transferred from Equity Instrument through Other
Comprehensive Income to Retained Earnings.
Nature and purpose of reserves
General Reserve:
General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income,
items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
Securities Premium Reserve:
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions
of the Companies Act, 2013.
Debenture Redemption Reserve:
The Group is required to create a Debenture Redemption Reserve out of the profits which is available for payment of dividend
for the purpose of redemption of debentures.
Capital Redemption Reserve:
Capital Redemption Reserve represents amounts set aside on redemption of preference shares.
Capital Reserve:
Capital Reserve consists of forfeiture of the amount received from Tata Sons Limited on preferential allotment of convertible
warrants in the Parent Company, on the lapse of the period to exercise right to convert the said warrants and on forfeiture of
amounts paid on Debentures.
Special Reserve Fund:
This reserve represents the amount transferred from its annual profits by the non-banking finance subsidiary in the Group
pursuant to Reserve Bank of India regulations.
Retained Earnings:
Retained Earnings are the profits of the Group earned till date net of appropriations.
Equity Instrument through Other Comprehensive Income:
This reserve represents the cumulative gains and losses arising on revaluation of equity instruments measured at fair value
through Other Comprehensive Income, net of amounts reclassified to retained earnings when those assets are disposed of.
Foreign Currency Translation Reserve:
Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their
functional currencies to the Group’s presentation currency (i.e. `) are recognised directly in Other Comprehensive Income and
accumulated in the foreign currency translation reserve.
Effective Portion of Cash Flow Hedge:
The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of
designated portion of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes
in fair value of the designated portion of the hedging instruments that are recognised and accumulated under the heading
of cash flow hedging reserve will be reclassified to profit or loss only when the hedged transaction affects the profit or loss, or
included as a basis adjustment to the non-financial hedged item.
226 I Consolidated Financials
The Tata Power Company Limited
21. Non-current Borrowings
Notes to the Consolidated Financial Statements
As at 31st March, 2017
As at 31st March, 2016
As at 1st April, 2015
Non-current
` crore
Current
` crore
Non-current
` crore
Current
` crore
Non-current
` crore
Current
` crore
(i) Unsecured - At Amortised Cost
Bonds/Debentures
Bonds - 8.50% Euro Notes 2017 ...............
Convertible Debentures .............................
Redeemable Non-Convertible
Debentures ......................................................
Term Loans
Nil
Nil
386.22
Nil
394.54
1.11
4,676.67
4,499.77
3,907.60
From Banks ......................................................
5,316.28
From Others ....................................................
Loans from Related Parties .............................
Nil
770.42
67.50
Nil
Nil
5,977.88
Nil
787.03
Nil
Nil
Nil
667.90
Nil
Nil
372.21
1.02
2,983.29
5,511.04
7.61
742.47
Nil
Nil
Nil
1,075.60
188.22
Nil
Deferred Payment Liabilities - Sales Tax
Deferral ....................................................................
Others
Non-Convertible Cumulative
Redeemable Preference Shares................
(ii) Secured - At Amortised Cost
Bonds/Debentures
Redeemable Non-Convertible
Debentures ......................................................
Term Loans
28.45
15.35
43.30
14.17
57.48
11.37
245.00
Nil
11,036.82
4,968.84
245.00
11,356.46
Nil
682.07
245.00
9,920.12
Nil
1,275.19
2,518.69
41.00
2,061.34
41.02
1,603.75
258.33
From Banks ......................................................
From Others ....................................................
9,456.70
632.98
2,303.64
79.18
8,382.52
613.56
1,050.78
71.93
7,505.19
2,318.00
795.65
125.78
Others
Buyer’s Credit ..................................................
1,497.77
14,106.14
Total ........................................................................
25,142.96
Nil
2,423.82
7,392.66
Nil
11,057.42
22,413.88
Nil
1,163.73
1,845.80
Nil
11,426.94
21,347.06
Nil
1,179.76
2,454.95
Consolidated Financials I 227
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
21. Non-current Borrowings (Contd.)
Security
(i)
(ii)
Redeemable Non-Convertible Debentures are secured by a pari passu charge on the assets of various wind farms, land
in village Takve Khurd (Maharashtra) and movable and immovable properties in and outside Maharashtra, as also all
transmission stations/lines, receiving stations and sub-stations in Maharashtra.
Term Loans and Buyer’s Credit availed by the Group from various Banks and Financial Institutions are secured
by a pari passu charge on all present and future moveable and immovable assets, stores and spares, raw materials,
work-in-progress, finished goods, receivables, intangibles and rights of the respective entities and bank guarantees.
Unsecured
Terms of Repayments
(i)
Unsecured Redeemable Non-Convertible Debentures includes ` 1,488.80 crore carrying 10.75% rate of interest and is
redeemable in August, 2072. The Group has the call option to redeem the same at the end of 10 years from 21st August,
2022 and at the end of every year thereafter.
(ii) Unsecured Redeemable Non-Convertible Debentures includes ` 998.55 crore which carry rates of interest of 9.41% and
9.48% and are redeemable starting from 2019 and ending in 2023.
(iii) Unsecured Redeemable Non-Convertible Debentures includes ` 2,189.32 crore which carry rates of interest ranging
from 8% to 9.24% and are redeemable between January 2022 and June 2026.
(iv) 8.50% Euro Notes will be fully repaid in August, 2017.
(v)
12% Non-Convertible cumulative redeemable preference shares are due for redemption in March, 2033. However the
Group shall have the option to redeem the preference shares at any time after the allotment thereof keeping in view the
availability of the profitability/surplus funds.
(vi) Unsecured Term Loans from Banks have maturities starting from 2018 and ending with 2021 in various installments.
(vii) Loans from Related parties are carrying interest rates between LIBOR plus 6.1% and LIBOR plus 6.35% and are repayable
in installments completing in June 2018.
(viii) Sales Tax Deferral is repayable in 150 installments commencing from April, 2015 and repayable in full by 2022.
Secured
(i)
(ii)
Secured Redeemable Non-Convertible Debentures includes ` 1,522.16 crore which carry rates of interest ranging from
9.15% to 10.40% and is redeemable starting from 2017 and ending with 2026, in various installments.
Secured Redeemable Non-Convertible Debentures includes ` 996.53 crore which carry varying rates of interest, a part
of the same is fixed at 8% and remaining is floating and calculated considering HDFC Bank Limited’s base rate plus 15
basis points. These are redeemable starting from 2021 and ending with 2027, in various annual installments.
(iii)
Secured Term Loans from Banks and Others have maturities starting from 2017 and ending with 2036 in various
installments.
228 I Consolidated Financials
The Tata Power Company Limited
22. Other Financial Liabilities
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current
Security Deposits from Customers ..........................................
Payable for purchase of fixed assets .......................................
Other Liabilities ..............................................................................
Total ..............................................................................
537.53
5.06
0.30
542.89
566.37
4.85
0.35
571.57
520.96
4.11
0.76
525.83
Current
(a) Current Maturities of Long-term Debt ...........................
7,392.66
1,845.80
2,454.95
(b) Interest accrued but not due on Borrowings -
Others .........................................................................................
(c) Interest accrued but not due on Borrowings - Joint
Ventures .....................................................................................
(d) Investor Education and Protection Fund shall be
credited by the following amounts namely: **
Unpaid Dividend .............................................................
Unpaid Matured Deposits ...........................................
Unpaid Matured Debentures .....................................
(e) Other Payables
Payables towards Purchase of Fixed Assets ..........
Derivative Contracts ......................................................
Security Deposits from Consumers..........................
Security Deposits from Customers ...........................
Tender Deposits from Vendors ..................................
Regulatory Liabilities other than Distribution
Business ..............................................................................
Other Financial Liabilities ............................................
563.11
329.04
16.41
0.03
0.09
771.03
944.51
211.67
43.58
1.88
799.83
382.84
Total ..............................................................................
11,456.68
336.46
232.53
14.87
0.03
0.09
653.32
937.23
206.11
24.76
1.41
322.38
159.63
14.61
0.03
0.09
558.81
930.68
188.13
34.30
2.50
639.21
164.16
5,055.98
1,145.06
187.48
5,998.65
** Includes amounts outstanding aggregating ` 0.87 crore (31st March, 2016 - ` 0.84 crore, 1st April, 2015 - ` 0.85 crore) for more
than seven years pending legal cases.
Consolidated Financials I 229
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 23. Provisions
Notes to the Consolidated Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current
Provisions for Employee Benefits
Compensated Absences..............................................................
Gratuity (Net) [Refer Note 38(2.3)] ...........................................
Post-Employment Medical Benefits [Refer Note 38(2.3)] ....
Other Defined Benefit Plans [Refer Note 38(2.3)] ...............
Other Employee Benefits ............................................................
Other Provisions
Provision for Warranties...............................................................
Provision for Estimated Losses ..................................................
Total ..........................................................................................................
Current
Provisions for Employee Benefits
Compensated Absences..............................................................
Gratuity (Net) [Refer Note 38(2.3)] ...........................................
Post-Employment Medical Benefits [Refer Note 38(2.3)] .....
Other Defined Benefit Plans [Refer Note 38(2.3)] ...............
Other Employee Benefits ............................................................
Other Provisions
Provision for Warranties...............................................................
Provision for Losses .......................................................................
Provision for Future Losses of Joint Ventures .....................
Provision for Rectification Work ...............................................
133.25
30.76
24.86
41.20
22.16
252.23
18.34
0.11
18.45
270.68
25.04
13.76
0.83
5.84
2.60
48.07
44.18
0.77
82.64
32.03
125.94
25.83
20.57
39.01
14.66
226.01
16.85
0.67
17.52
243.53
15.52
29.16
0.73
5.77
5.87
57.05
38.12
91.58
60.16
15.52
114.14
19.52
18.49
37.55
14.38
204.08
16.83
1.74
18.57
222.65
14.41
28.51
0.64
5.54
4.79
53.89
32.65
56.32
0.98
3.72
Total ..........................................................................................................
159.62
207.69
205.38
262.43
93.67
147.56
230 I Consolidated Financials
The Tata Power Company Limited 23.1 Other Provisions
Notes to the Consolidated Financial Statements
Provision for
Warranties
Provision for
Losses
Provision for
Rectification
Work
Provision
for Future
Losses
of Joint
Ventures
49.48
36.70
(5.56)
(25.65)
54.97
54.97
43.13
(6.86)
(28.72)
62.52
0.98
59.18
Nil
Nil
60.16
60.16
22.48
Nil
Nil
82.64
58.06
34.47
(0.28)
Nil
92.25
92.25
Nil
(0.30)
(91.07)
0.88
3.72
11.80
Nil
Nil
15.52
15.52
16.51
Nil
Nil
32.03
` crore
Total
112.24
142.15
(5.84)
(25.65)
222.90
222.90
82.12
(7.16)
(119.79)
178.07
Balance as at 1st April, 2015 ..................................
Additional provisions recognised ............................
Reductions arising from payments .........................
Reductions arising from remeasurements or
settlement without cost..............................................
Balance as at 31st March, 2016 ............................
Balance as at 31st March, 2016 ............................
Additional provisions recognised ............................
Reductions arising from payments .........................
Reductions arising from remeasurements or
settlement without cost..............................................
Balance as at 31st March, 2017 ............................
Notes:
1.
2.
3.
4.
5.
Provision for employee benefits includes provision for gratuity, post-employment, medical benefits, pension
(including Director pension), ex-gratia death benefit and retirement gift.
The provision for warranty claims represents estimated warranty liability for the products sold. These estimates
are established using historical information on the nature, frequency and average cost of warranty claims and
management estimates regarding possible future incidence based on corrective actions on product failures.
The provision for future losses of Joint Ventures is recognised, to the extent that the group has incurred legal or
constructive obligations, in the event that the share of losses for joint ventures accounted for using the equity
method, exceeds zero.
The provision for losses includes provision for Estimated Losses and Provision for Contingency on regulatory assets
recognised for Delhi Distribution business.
The provision for rectification work relates to the estimated cost of work agreed to be carried out for the rectification
of goods supplied to the customers. The amount is anticipated to be expensed in the year 2017-18. These amounts
have not been discounted for the purposes of measuring the provision for rectification work, because the effect is
not material.
24. Tax liabilities
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current tax liabilities
Income-tax payable ......................................................................
Total ..........................................................................................................
Current tax liabilities
Income-tax payable ......................................................................
Total ..........................................................................................................
3.74
3.74
40.04
40.04
3.74
3.74
70.16
70.16
3.74
3.74
38.60
38.60
Consolidated Financials I 231
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
25. Other Liabilities
Notes to the Consolidated Financial Statements
Non-current
Consumers’ Benefit Account ......................................................
Deferred Revenue - Service Line Contributions from
Consumers .......................................................................................
Liability to Consumers .................................................................
Deferred Rent Liability .................................................................
Deferred Revenue Grant .............................................................
Total ..........................................................................................................
Current
Statutory Liabilities ......................................................................
Advance from Customers/Public Utilities ............................
Statutory Consumer Reserves ..................................................
Special Appropriation towards Project Cost .......................
Deferred Revenue Grant ............................................................
Other Liabilities .............................................................................
Total ..........................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
21.94
21.94
21.94
967.83
243.83
46.69
1,806.41
3,086.70
279.49
412.71
658.23
533.61
50.72
41.56
1,976.32
878.48
265.10
47.67
1,829.69
3,042.88
260.46
219.82
644.23
533.61
50.72
2.88
1,711.72
779.80
291.21
9.74
1,880.91
2,983.60
266.49
335.59
623.23
533.61
50.72
1.10
1,810.74
26. Current Borrowings
(i) Unsecured - At Amortised Cost
From Banks
(a) Buyer’s Line of Credit .....................................................
(b) Bank Overdraft ...............................................................
(c) Short-term Loans ............................................................
From Others
(d) From Related Parties......................................................
(e) From Others ......................................................................
amount
(f ) Commercial
outstanding during the year is ` 4,720 crore
(31st March, 2016 - ` 2,845 crore)] .............................
[maximum
Papers
(ii) Secured - At Amortised Cost
From Banks
(a) Buyer’s Line of Credit .....................................................
(b) Short-term Loans ............................................................
Total ..........................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
672.20
16.64
575.93
1,197.49
4,174.38
3,074.56
9,711.20
Nil
6,568.59
6,568.59
16,279.79
392.37
373.36
556.20
1,127.90
4,598.89
1,303.07
8,351.79
1.00
6,236.12
6,237.12
14,588.91
1,178.99
163.89
1,194.72
1,124.24
5,306.97
1,250.74
10,219.55
2.00
6,355.97
6,357.97
16,577.52
The Short-term Loans and Buyer’s Line of Credit availed by various entities of the Group are secured by a pari passu charge on
immovable property of certain entities, both present and future and are also secured by a pari passu charge on tangible assets,
receivables and stores and spares of the respective entities.
Security
232 I Consolidated Financials
The Tata Power Company Limited
27. Revenue from Operations
Notes to the Consolidated Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
(a) Revenue from Power Supply and Transmission Charges ...........................
Less:
Expense to be adjusted in future tariff determination (Net) ......
Add/(Less): Income/(Expense) to be adjusted in future tariff
determination (Net) in respect of earlier years ...............................
(b) Project/Operation Management Services
Assets Under Lease ...................................................................................................
Others ............................................................................................................................
(c) Revenue from Contracts (including Excise Duty)
Solar Products ............................................................................................................
Electronic Products ...................................................................................................
(d) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipment, etc. ..................................
Charter Hire .................................................................................................................
Income in respect of Services Rendered ..........................................................
Compensation ............................................................................................................
Amortisation of Capital Grants .............................................................................
Amortisation of Service Line Contributions ....................................................
Income from Storage and Terminalling ............................................................
Income from Finance Lease ...................................................................................
Miscellaneous Revenue and Sundry Credits ...................................................
Sale of Fly Ash .............................................................................................................
Sale of Carbon Credits .............................................................................................
Dividend from Equity Investments measured at FVTOCI ...........................
Dividend from Equity Investments measured at FVTPL .............................
Interest on Inter-corporate Deposits .................................................................
Profit on sale of Current Investments - measured at FVTPL ......................
24,160.71
(121.34)
(100.69)
23,938.68
891.83
117.21
1,009.04
1,492.35
618.34
2,110.69
13.62
159.37
302.81
14.66
61.18
67.00
14.62
113.42
57.25
10.61
9.47
2.99
0.61
0.67
11.03
839.31
25,567.05
(97.65)
155.42
25,624.82
987.47
133.44
1,120.91
1,468.80
585.20
2,054.00
13.82
117.86
223.68
12.84
51.22
59.59
13.46
95.97
73.94
8.57
11.14
6.24
0.54
0.06
12.23
701.16
Total .............................................................................................................................................
27,897.72
29,500.89
Consolidated Financials I 233
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
28. Other Income
Notes to the Consolidated Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
(a) Interest Income
(i) Financial Assets held at Amortised Cost
Interest on Bank Deposits ......................................................................................
Interest from Inter-corporate Deposits .............................................................
Interest on Overdue Trade Receivables .............................................................
Interest on Non-current Investment - Contingency Reserve Fund .........
Interest on Non-current Investment - Deferred Tax Liability Fund .........
Interest on Loans to Joint Ventures ....................................................................
Other Interest .............................................................................................................
(ii) Others
Interest on Income-tax refund .............................................................................
(b) Dividend Income
From Current Investments measured at FVTPL..............................................
From Non-current Investments measured at FVTOCI ..................................
(c) Gain/(Loss) on Investments
Gain on Sale of Current Investment measured at FVTPL ............................
Gain on Sale of Investment in Associates .........................................................
(d) Other Non-operating Income
Commission Earned .................................................................................................
Gain/(Loss) on disposal of Property, Plant and Equipment (Net) ............
Delayed Payment Charges .....................................................................................
Other Income .............................................................................................................
Management Fees ....................................................................................................
11.77
17.57
21.41
7.35
21.21
22.98
16.14
118.43
3.44
121.87
1.20
3.97
5.17
90.95
0.26
91.21
9.90
(18.88)
27.91
23.53
325.17
367.63
21.23
4.84
118.74
6.62
21.16
44.79
1.44
218.82
0.40
219.22
0.83
25.89
26.72
29.68
21.14
50.82
9.96
22.08
27.98
1.17
396.14
457.33
(e) Other Gains/(Loss)
Net Loss on Foreign Exchange .............................................................................
Total .............................................................................................................................................
(383.66)
202.22
(662.75)
91.34
234 I Consolidated Financials
The Tata Power Company Limited
29. Raw Materials Consumed and Decrease in Work-in-Progress/Finished Goods/Stock-in-Trade
Notes to the Consolidated Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Raw Materials Consumed
Opening Stock ...................................................................................................................
Add: Purchases ...................................................................................................................
Less: Closing Stock ............................................................................................................
Total .............................................................................................................................................
Decrease in Work-in-Progress/Finished Goods/Stock-in-Trade
Work-in-Progress
Inventory at the beginning of the year .....................................................................
Add: Additions during the year ....................................................................................
Less: Inventory at the end of the year ........................................................................
Finished Goods
Inventory at the beginning of the year .....................................................................
Add: Purchase/Used in the year ...................................................................................
Less: Inventory at the end of the year ........................................................................
Total .............................................................................................................................................
139.69
1,028.74
1,168.43
158.76
1,009.67
16.77
18.48
35.25
29.71
5.54
88.76
44.17
132.93
110.13
22.80
28.34
104.74
1,171.56
1,276.30
139.69
1,136.61
3.87
13.44
17.31
16.77
0.54
119.70
2.68
122.38
88.76
33.62
34.16
30. Employee Benefits Expense
Salaries and Wages ..................................................................................................................
1,164.58
1,126.63
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Contribution to Provident Fund [Refer Note 38(1)] .....................................................
Contribution to Superannuation Fund [Refer Note 38(1)] ........................................
Retiring Gratuities [Refer Note 38(2.3)].............................................................................
Leave Encashment Scheme ..................................................................................................
Pension Scheme .......................................................................................................................
Staff Welfare Expenses ............................................................................................................
Less:
Employee Cost Capitalised ..........................................................................................
Employee Cost Inventorised .......................................................................................
60.89
10.77
37.85
38.78
9.68
161.64
1,484.19
151.54
36.71
188.25
47.87
10.60
21.76
26.35
22.26
139.06
1,394.53
147.94
19.08
167.02
Total .............................................................................................................................................
1,295.94
1,227.51
Consolidated Financials I 235
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Notes to the Consolidated Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
31. Finance Costs
(a) Interest Expense:
Borrowings
Interest on - Debentures ....................................................................................
Interest on - Euro Notes ......................................................................................
Interest on Loans - Banks and Financial Institutions ................................
Interest paid to Joint Ventures .........................................................................
Others
Interest on Consumer Security Deposits .....................................................
Other Interest and Commitment Charges ...................................................
Interest on Non-convertible Cumulative Redeemable Preference
Shares........................................................................................................................
Less: Interest Capitalised ....................................................................................
(b) Other Borrowing Cost:
(Gain)/Loss arising on Interest Rate Swap ...................................................
Other Finance Costs .............................................................................................
Less: Finance charges Capitalised ...................................................................
Total .............................................................................................................................................
877.49
33.78
2,107.72
38.68
51.84
52.42
41.61
3,203.54
63.75
3,139.79
(146.55)
120.73
Nil
(25.82)
3,113.97
506.05
34.06
2,171.83
64.43
46.35
127.41
40.07
2,990.20
38.34
2,951.86
221.25
62.77
0.07
283.95
3,235.81
236 I Consolidated Financials
The Tata Power Company Limited
32. Other Expenses
Notes to the Consolidated Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Consumption of Stores, Oil, etc. (excluding ` 68.73 crore on repairs and
maintenance - Previous Year - ` 79.26 crore) ....................................................................
Rental of Land, Buildings, Plant and Equipment, etc...................................................
Repairs and Maintenance -
(i) To Buildings and Civil Works ..............................................................................
(ii) To Machinery and Hydraulic Works .................................................................
(iii) To Furniture, Vehicles, etc. ...................................................................................
Rates and Taxes .........................................................................................................................
Insurance .....................................................................................................................................
Other Operation Expenses ....................................................................................................
Ash Disposal Expenses ...........................................................................................................
Warranty Charges .....................................................................................................................
Travelling and Conveyance Expenses ...............................................................................
Consultants’ Fees ......................................................................................................................
Auditors’ Remuneration .........................................................................................................
Cost of Services Procured ......................................................................................................
Bad Debts ....................................................................................................................................
Allowance for Doubtful Debts and Advances (Net) .....................................................
Amortisation of Premium paid for Leasehold Land .....................................................
Provision for Losses .................................................................................................................
Loss on Sale of Investments in Joint Ventures accounted for using the Equity
Method .........................................................................................................................................
Donations ....................................................................................................................................
Legal Charges ............................................................................................................................
Corporate Social Responsibility Expenses.......................................................................
Impairment of Non-current assets held for sale ...........................................................
Excise Duty Paid ........................................................................................................................
Transfer to Contingency Reserve ........................................................................................
Marketing expenses ................................................................................................................
178.43
113.77
125.37
416.89
73.90
616.16
87.30
79.85
417.22
52.96
14.41
65.98
57.78
17.98
229.34
3.49
43.82
17.31
(91.07)
15.27
5.03
54.23
51.04
34.00
15.81
14.00
11.07
104.99
117.99
101.94
399.11
72.93
573.98
110.45
100.98
346.26
56.28
11.05
54.76
52.85
14.06
218.87
2.47
93.10
19.16
34.47
NIl
8.87
38.32
54.14
Nil
6.59
21.00
15.79
Miscellaneous Expenses ........................................................................................................
Total .............................................................................................................................................
100.00
2,205.18
101.25
2,157.68
Consolidated Financials I 237
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
33.
Income taxes
1.
Income taxes recognised in statement of profit and loss
Current tax
In respect of the current year ...................................................................................
In respect of the previous years ..............................................................................
Deferred tax
In respect of the current year ...................................................................................
Adjustments to deferred tax attributable to changes in tax rates .............
Total income tax (benefit)/expense recognised in the current year
For the year ended
31st March, 2017
` crore
609.00
0.37
609.37
For the year ended
31st March, 2016
` crore
593.54
(68.33)
525.21
(655.19)
Nil
(655.19)
(45.82)
131.38
23.72
155.10
680.31
The income tax expense for the year can be reconciled to the accounting profit as follows:
(Loss)/Profit Before Tax considered for tax working ........................................
Income tax expense calculated at 34.61% ..........................................................
Effect of Income that is exempt from taxation ..................................................
Effect of expenses that are not deductible in determining taxable
profit .................................................................................................................................
Effect of Tax Incentives ...............................................................................................
Effect of Tax on Income at different rates ............................................................
Effect of additional tax on account of Minimum Alternate Tax (MAT)
applicability ....................................................................................................................
Effect of MAT credit recognised ..............................................................................
Effect of Reversal of Deferred Tax on Tax Holiday assets due to change in
Estimates (Refer Note 12) ..........................................................................................
Effect of Tax on Distribution on Perpetual Securities ......................................
Effect of previously unrecognised tax losses now recouped to reduce
current tax expense .....................................................................................................
Effect of Tax losses for which no Deferred Income-tax was recognised ...
Effect of Tax on Undistributed Profits ...................................................................
Effect of Tax on Other Items .....................................................................................
Effect of different tax rates of subsidiaries operating
in other
jurisdictions ....................................................................................................................
Effect on deferred tax balances due to the changes in income tax rate
from 33.99% to 34.61% ..............................................................................................
Adjustments recognised in the current year in relation to the current
tax of prior years ...........................................................................................................
Income-tax (benefit)/expense recognised in statement of profit or
loss ....................................................................................................................................
Notes:
For the year ended
31st March, 2017
` crore
(314.55)
(108.86)
(139.40)
For the year ended
31st March, 2016
` crore
1,280.71
443.20
(207.75)
631.66
(171.90)
174.28
172.38
(660.54)
(180.65)
59.26
(107.63)
295.15
61.68
(25.40)
(46.22)
Nil
(46.19)
0.37
(45.82)
642.85
(201.06)
57.05
153.82
Nil
Nil
59.19
(528.32)
1.44
33.22
(22.46)
293.74
23.72
748.64
(68.33)
680.31
1. The tax rate used for the years 2016-17 and 2015-16 reconciliations above is the corporate tax rate of 34.61%
payable by corporate entities in India on taxable profits under the Indian tax law.
2. The Indian Companies have to pay taxes based on the higher of Income-tax profit of the company or MAT at
21.3416% of book profit for the year 2016-17 and 2015-16.
238 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
33.
Income taxes (Contd.)
2.
Income-tax recognised directly in equity
Current tax
Effect of Distribution on Unsecured Perpetual Securities ......................................
Deferred tax
Effect of Distribution on Unsecured Perpetual Securities ......................................
Income-tax benefit recognised directly in equity
3.
Income-tax recognised in Other Comprehensive Income
Current tax
Net fair value gain on investments in equity shares at FVTOCI ............................
Deferred tax
Arising on Income and expenses recognised in other comprehensive income
Net fair value gain on investments in equity shares at FVTOCI ............................
Remeasurements of defined benefit obligation ........................................................
Total income-tax expense recognised in Other Comprehensive Income
Bifurcation of the Income-tax expense recognised in Other Comprehensive
Income into:
Items that will be reclassified to profit or loss.............................................................
Items that will not be reclassified to profit or loss .....................................................
31st March, 2017
` crore
31st March, 2016
` crore
(59.26)
(59.26)
0.46
(58.80)
(59.19)
(59.19)
Nil
(59.19)
31st March, 2017
` crore
31st March, 2016
` crore
38.55
38.55
(0.12)
(4.36)
(4.48)
34.07
Nil
34.07
34.07
1.41
1.41
4.18
(2.85)
1.33
2.74
Nil
2.74
2.74
34.
(i) The Group, in the case of its power plant at Maithon, had applied to the Ministry of Power, Government of India along with
necessary documents for grant of Mega Power Status to the Group’s 1050 MW Maithon Right Bank Thermal Power Plant.
Pending receipt of the mega power certificate, the Group remains liable to pay excise and customs duty on its receipts
of goods and materials wherever applicable. Accordingly, the Group had paid excise Duty to its vendors aggregating
to ` 120.24 crore (31st March, 2016 - ` 119.97 crore, 1st April, 2015 - ` 119.97 crore) upto 31st March, 2017. Out of total
payment of excise duty to suppliers ` 119.11 crore (net of receipts) (31st March, 2016 - ` 119.11 crore, 1st April, 2015 -
` 119.11 crore) had been capitalised and the balance amount of ` 1.13 crore is included in capital work-in-progress as at
31st March, 2017.
(ii) Power Plant at Mundra UMPP :
(a) Revenue recognition arising out of CERC/APTEL/Supreme Court Order
The Group had filed a Petition before CERC in July 2012 with a prayer to establish an appropriate mechanism to offset
in tariff the adverse impact of the unforeseen, uncontrollable and unprecedented escalation in the imported coal
price and the change in law by Government of Indonesia under the provision of Change in Law or Force Majeure
clauses in the PPA and pass such Order as it may deem fit considering the facts and circumstances of the case.
Consolidated Financials I 239
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
CERC rejected the claims made by the Group under the provisions of Change in Law and Force Majeure but granted
relief by exercising its regulatory power under Electricity Act, 2003. The CERC Order was challenged by the procurers
before APTEL. APTEL in its Judgment dated 7th April, 2016 set aside the findings of CERC on Regulatory Power and
also rejected the claims made by the Group under provision of Change in Law to PPA. It however upheld that change
in Indonesian law was a Force Majeure event under the PPA and the Group is entitled to relief under Force Majeure.
APTEL remanded the matter back to the CERC with a direction to assess the extent of impact of Force Majeure
and grant such relief as may be available under the PPA. APTEL’s order was challenged by the procurers, including
consumer groups, before the Hon’ble Supreme Court. On 6th December, 2016, CERC passed the Order prescribing
Force Majeure relief mechanism. The Hon’ble Supreme Court, vide its order dated 11th April, 2017, rejected the
Group’s claim under Force Majeure and Change in Law and held that where there are no guidelines framed at all or
where the guidelines do not deal with a given situation, the CERC’s general regulatory powers under Section 79(1)(b)
can be exercised.
The Group had not recognised any revenue pertaining to the above matter in its books of account, and therefore the
Supreme Court judgment has no impact on the consolidated financial statements for the year ended 31st March, 2017.
(b)
Impairment of Assets :
As at 31st March, 2017, the carrying amount of Property, Plant and Equipment at Mundra (assets at Mundra)
amounting to ` 17,495.29 crore (31st March, 2016 - ` 17,882.42 crore, 1st April, 2015 - ` 15,891.29 crore). The recoverable
amount of the assets at Mundra (cash generating unit) has been determined on the basis of their value in use. For
estimating the value in use it is necessary to project the future cash flow of assets at Mundra over its estimated useful
life. In making these projections, management has relied on external estimates of market participants for the future
price of coal and foreign exchange rates and made certain assumptions relating to future tariff and estimates of
operating performance. However, if these assumptions change consequent to changes in future conditions, there
could be adverse or favorable effect on the recoverable amount of the assets at Mundra.
The underlying assumptions i.e. fuel prices, exchange rate variation, future tariff and operating parameters that
would impact future cash flows for determining the value in use will continue to be monitored on a periodic basis by
the Management.
(iii) The Group has investments in equity shares of Tata Teleservices Limited (TTSL) which are measured at fair value through
Other Comprehensive Income. Based on a valuation report obtained from TTSL, the Group had reassessed the fair value
of its investment in TTSL as at 30th September, 2016 and recorded fair value loss of ` 124.46 crore as at that date. In the
absence of updated information, it has not been possible to revise the valuation as at 31st March, 2017 and consequently
adjustments, if any, to the carrying value of investments in TTSL of ` 384.88 crore as at 31st March, 2017 have not been
made.
(iv) During the year, DoCoMo had filed a petition before the Delhi High Court for implementation of the Arbitration Award
related to its exercise of the ‘put option’ to the transfer of its entire shareholding in TTSL at a minimum predetermined
price of ` 58.045 per share pursuant to which the Delhi High Court directed Tata Sons (as representative of the Tata Group)
to deposit the damages including costs and interest in an escrow account. Accordingly, the Group deposited ` 790 crore
with Tata Sons, being its share of the contractual obligation. On 28th April, 2017, the Delhi High Court ruled that the
Arbitration Award is enforceable in India. Consequently, the Group has as at 31st March, 2017 written-off ‘other advances’
of ` 651.45 crore, being the difference between the fair value of equity shares of TTSL determined as at 30th September,
2016 and the consideration payable to DoCoMo deposited with Tata Sons. This has been disclosed as an exceptional item.
The balance of ` 138.55 crore, which represents the fair value of shares receivable from DoCoMo based on a valuation as
at 30th September, 2016, is being carried forward as Other Advance and included in Other Non-Current Financial Assets.
As stated in note 34(iii) above, valuation of TTSL shares as at 31st March, 2017 is not available.
(v) The Group has a take-or-pay contract with Dagachhu Hydro Power Corporation Limited (DHPC) for a period of 25 years
(upto March, 2040) for purchase of power from 126 MW run of the river hydro plant with a guaranteed base rate which
is escalable 2% every calendar year. During the year, the Group incurred a loss as the power was sold at a rate lower
than the guaranteed base rate. The lower rate realisation was on account of suppressed power market prices during
the year, limited access to power market for power from outside the country, corridor constraint resulting in increase in
transmission charges, etc.. The Management has assessed the profitability over the contract period based on the price
estimates shared by third party expert upto FY 2040. The prices have been forecasted by third expert using statistical tools
and models. Based on assessment carried out, Management is of the opinion that the contract would be profitable over
a period of time and no provision needs to be made for onerous contract.
240 I Consolidated Financials
The Tata Power Company Limited
35. Commitments:
Notes to the Consolidated Financial Statements
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
(a) Estimated amount of Contracts remaining to be
executed on capital account and not provided for:
(i)
the Group ...............................................................................
1,579.21
(ii) Group’s share of Joint Ventures ......................................
(iii) Group’s share of Associates .............................................
(b) Other Commitments
(i) The Group has given an undertaking for non-
disposal of shares to the lenders of Tata Power
Delhi Distribution Limited
its
outstanding borrowings...................................................
in respect of
(ii) Vendor purchase commitments and contracts to
provide future post sale services ...................................
99.29
82.15
341.88
539.82
1,724.01
739.35
107.65
442.61
517.87
1,426.98
1,144.17
151.14
520.78
303.73
(iii) In accordance with the terms of the Share Purchase Agreement and the Shareholder’s Agreement entered into
by Panatone Finvest Limited (PFL), an associate of the Group, with the Government of India, PFL has contractually
undertaken a “Surplus Land” obligation including agreeing to transfer 45% of the share capital of the Resulting
Company, at Nil consideration, to the Government of India upon Demerger of the Surplus Land by Tata
Communications Limited (TCL).
Based on its shareholding in Tata Communications Ltd. as on 31st March, 2017, PFL and the Group would be entitled
to be allotted 35.81% of the share capital of the Resulting Company. Additionally, PFL has arrangements for procuring
13.05% of the share capital of the Resulting Company and it would need to acquire further shares representing 1.85%
of the share capital of the Resulting Company.
(iv) In terms of the Port Service Agreement valid upto 31st March, 2040, the Group is required to pay fixed handling
charges amounting to ` 138.00 crore per annum escalable as per CERC notification and variable port handling charges
for handling a certain minimum tonnage of coal for its Mundra UMPP. In the event of a default which subsists for over
one year, the Port Operator shall be entitled to suspend all its services under the agreement without terminating the
agreement and all amount outstanding shall be payable by the Group.
Consolidated Financials I 241
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
36. Contingent liabilities
Notes to the Consolidated Financial Statements
a) Contingent liabilities
Claims against the Group not acknowledged as debts consists of
(i)
Interest and penalty demand disputed by the Group relating to
Entry tax claims for the financial years 2005-06 to 2012-13. [Refer
Note (g) below] ..................................................................................................
(ii) Disallowance of carrying cost and other costs by Appellate
Tribunal for Electricity (ATE) has been disputed by the Group.
Based on legal opinions (the Group has a strong case), the Group
has filed Special Leave Petition (SLP) with the Hon’ble Supreme
Court. ....................................................................................................................
(iii) Custom duty claims (including interest and penalty) disputed
by the Group relating to applicability and classification of coal
[Payment made under protest against these claims of ` 187.97
crore (31st March, 2016 - ` 187.97 crore, 1st April, 2015 - ` 187.97
crore)]. ...................................................................................................................
(iv)(a) Way Leave fees (including interest) claims disputed by the Group
relating to rates charged. ...............................................................................
(b) Demand raised by the Collector towards periodic revision in lease
rent disputed by the Group ..........................................................................
(v) Rates, Cess, Excise and Custom Duty claims disputed by the
31st March,
2017
` crore
31st March,
2016
` crore
1st April,
2015
` crore
1,967.43
1,813.69
1,587.06
269.00
Nil
Nil
246.33
246.33
246.33
84.18
150.00
72.58
Nil
62.60
Nil
Group. ...................................................................................................................
415.98
371.03
308.95
(vi) A Suit has been filed against the Group claiming compensation
by way of damages for alleged wrongful disconnection of power
supply. ..................................................................................................................
Interest accrued thereon. ..............................................................................
(vii) Octroi claims disputed by the Group, in respect of octroi
exemption claimed. .........................................................................................
(ix)
(viii) Compensation disputed by private land owners in respect of
private land acquired under the provisions of Maharashtra
Industrial Development Act, 1961. ............................................................
In the case of the Group, disputes relating to power purchase
agreements .........................................................................................................
(x) Other Claims .......................................................................................................
Claims against the Group’s share of Joint Ventures and Group’s share of
Associates not acknowledged as debts consists of
Group’s share of Joint Ventures
(i) Demand for royalty payment is set-off against recoverable Value
Added Tax (VAT) paid on inputs for coal production. ..............................
(ii) Other claims
Group’s share of Associates
Other claims ............................................................................................................
Nil
Nil
5.03
22.00
246.47
161.83
Nil
Nil
5.03
20.51
120.60
5.03
22.00
22.00
1,538.68
104.25
1,190.91
171.72
17.93
72.14
539.03
4,197.35
2,545.19
81.26
366.42
7,166.46
2,331.41
79.02
612.66
6,758.80
Notes:
1 Amounts in respect of employee related claims/disputes, regulatory matters is not ascertainable.
2 Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending at
various forums/authorities.
242 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
36. Contingent liabilities (Contd.)
b) Other Contingent Liabilities:
Taxation matters for which liability, relating to issues of deductibility
and taxability, is disputed by the Group and provision is not made
(computed on the basis of assessments which have been re-opened
and assessments remaining to be completed)
In case of the Group [including interest demanded ` 12.57 crore
(31st March, 2016 - ` 12.38 crore, 1st April, 2015 - ` 14.43 crore)]...................
Group’s share of Joint Ventures ...............................................................................
Group’s share of Associates.......................................................................................
c)
Indirect exposures of the Group:
(i) Guarantees given to the lenders of joint Ventures for the borrowings
availed
Tubed Coal Mines Limited .................................................................................
Mandakini Coal Company Limited .................................................................
Cennergi Pty. Limited ..........................................................................................
(ii) The Group has pledged its shares of investments in joint ventures
and others with the lenders for borrowings availed
Joint Ventures
31st March,
2017
` crore
31st March,
2016
` crore
1st April,
2015
` crore
428.25
135.68
466.23
396.34
778.87
381.65
370.53
874.07
1,101.07
31st March,
2017
` crore
31st March,
2016
` crore
1st April,
2015
` crore
11.36
20.26
Nil
11.36
20.26
46.72
(equivalent
to ZAR 104.72
million)
11.36
115.79
257.07
(equivalent
to ZAR 496.48
million)
31st March,
2017
Nos
31st March,
2016
Nos
1st April,
2015
Nos
Powerlinks Transmission Limited ............................................................
Industrial Energy Limited ...........................................................................
Mandakini Coal Company Limited .........................................................
Itezhi Tezhi Power Corporation ................................................................
23,86,80,000
12,56,74,200
2,00,43,000
4,52,500
23,86,80,000
12,56,74,200
2,00,43,000
4,52,500
23,86,80,000
12,56,74,200
2,00,43,000
Nil
Others
Tata Teleservices Limited ............................................................................
18,27,08,138
18,27,08,138
18,27,08,138
(iii) The Group has also pledged 51% shares of CGPL and TPREL with the lenders for borrowings availed.
(d) The Group had introduced a Voluntary Separation Scheme (VSS) for its employees in December 2003, in response to
which initially 1,798 employees were separated. As per the Scheme, the retiring employees were paid Ex-gratia separation
amount by the Group. They were further entitled to Retiral Benefits (i.e. gratuity, leave encashment, pension commutation,
pension, medical and leave travel concession), the payment obligation of which became a matter of dispute between the
Group and the DVB Employees Terminal Benefit Fund 2002 (‘the Trust’). The Trust is of the view that its liability to pay
retiral benefits arises only on the employee attaining the age of superannuation or on death whichever is earlier. On 1st
November, 2004, the Group entered into a Memorandum of Understanding with the Government of National Capital
territory of Delhi (GNCTD) and a special Trust namely Special Voluntary Retirement Scheme Retirees Terminal Benefit
Fund, 2004 Trust (SVRS RTBF, 2004 Trust) was created. This Trust was created to exclusively disburse retiral dues of the SVRS
optees till these retirees attain the respective ages of superannuation or death, whichever is earlier, after which their dues
were to be paid through the Trust already in existence.
Consolidated Financials I 243
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
36. Contingent liabilities (Contd.)
Notes to the Consolidated Financial Statements
For resolution of the issue through the process of law, the Group had filed a Writ, before the Hon’ble Delhi High Court. The
Hon’ble Court pronounced its judgement on this issue on 2nd July, 2007 whereby while affixing liability on Discoms it has
provided two options to the Discoms for paying Retiral benefits to the Trust:
(i) Retiral benefits other than pension (terminal benefits) due to the VSS optees and to be paid by Discoms which shall
be reimbursed to Discoms by the Trust without interest on normal retirement / death (whichever is earlier) of such
VSS optees. In addition, the Discoms shall pay the Retiral Pension to VSS optees till their respective dates of normal
retirement, after which the Trust shall commence payment to such optees.
(ii) The Trust to pay the terminal benefits and all dues of the VSS optees and Discoms to pay to the trust an ‘Additional
Contribution’ required on account of premature payout by the Trust which shall be computed by an Arbitral Tribunal
of Actuaries to be appointed within a stipulated period.
The Group considers the second option as more appropriate and also estimates that the liability under this option
shall be lower than under the first option which is presently being followed. The Trust has been opposing it and
had filed an appeal LPA No.677/2011 before division bench which was dismissed on 31st August, 2015. Till date no
Arbitral Tribunal of Actuaries has been appointed. Pending computation of the liability by the Arbitral Tribunal of
Actuaries due to delay in appointment of the same, no adjustment has been made in these financial statements.
While the writ petition was pending, the Group had already advanced ` 77.74 crore (31st March, 2016 - ` 77.74 crore,
1st April, 2015 - ` 77.74 crore) to the SVRS Trust for payment of retiral dues to separated employees. In addition to the
payment of terminal benefits / residual pension to the Trust, in pursuant to the order of the Hon’ble Delhi High Court
dated 02.07.2007 in WP C 4827/2005, the Group has also paid interest @ 8% per annum ` 8.01 crore in FY 2008-09
totaling to ` 85.76 crore (31st March, 2016 - ` 85.76 crore, 1st April, 2015 - ` 85.76 crore) as recoverable from SVRS Trust
in case of option “ii”. As the Group was entitled to get reimbursement against advanced terminal benefit amount on
superannuation age, the Group had recovered/adjusted ` 83.82 crore (31st March, 2016 - ` 82.81 crore, 1st April, 2015 -
` 81.60 crore) from monthly pension, leave salary and other contribution, leaving a balance recoverable ` 1.94 crore
as on 31st March, 2017 (31st March, 2016 - ` 2.94 crore, 1st April, 2015 - ` 4.16 crore) from the SVRS Trust which includes
current portion of ` 1.03 crore for current year (31st March, 2016 - ` 1.34 crore, 1st April, 2015 - ` 1.27 crore).
e)
(i)
Apart from this, the Group has also been paying the retiral benefit including pension to the VSS optees till their
respective dates of normal retirement or death (whichever is earlier). DERC has approved the aforesaid retiral benefit
including pension amount in its Aggregate Revenue Requirement (ARR) and the same has been charged to the
statement of profit and loss amounting to ` 1.31 crore (for the year ended 31st March, 2016 - ` 2.23 crore). In addition
to this, during the year the Group has also recognised liability of ` 1.64 crore (31st March, 2016 - ` 4.20 crore, 1st April,
2015 - ` Nil) for retiral pension payable to the VSS optees till their respective date of normal retirement or death
(whichever is earlier) based on actuarial valuation as at 31st March, 2017.
In respect of the Standby Charges dispute with Reliance Infrastructure Ltd. (R-Infra) for the period from 1st April,
1999 to 31st March, 2004, the Appellate Tribunal of Electricity (ATE), set aside the Maharashtra Electricity Regulatory
Commission (MERC) Order dated 31st May, 2004 and directed the Group to refund to R-Infra as on 31st March, 2004,
` 354.00 crore (including interest of ` 15.14 crore) and pay interest at 10% per annum thereafter. As at 31st March,
2017 the accumulated interest was ` 229.56 crore (31st March, 2016 - ` 218.36 crore, 1st April, 2015 - ` 207.16 crore)
(` 11.20 crore for the year ended 31st March, 2017). On appeal, the Hon’ble Supreme Court vide its Interim Order
dated 7th February, 2007, has stayed the ATE Order and in accordance with its directives, the Group has furnished a
bank guarantee of the sum of ` 227.00 crore and also deposited ` 227.00 crore with the Registrar General of the Court
which has been withdrawn by R-Infra on furnishing the required undertaking to the Court.
Further, no adjustment has been made for the reversal in terms of the ATE Order dated 20th December, 2006,
of Standby Charges credited in previous years estimated at ` 519.00 crore, which will be adjusted, wholly by a
withdrawal/set off from certain Statutory Reserves as allowed by MERC. No provision has been made in the accounts
towards interest that may be finally determined as payable to R-Infra. Since 1st April, 2004, the Group has accounted
Standby Charges on the basis determined by the respective MERC Tariff Orders.
The Group is of the view, supported by legal opinion, that the ATE’s Order can be successfully challenged and hence,
adjustments, if any, will be recorded by the Group on the final outcome of the matter.
244 I Consolidated Financials
The Tata Power Company Limited
36. Contingent liabilities (Contd.)
Notes to the Consolidated Financial Statements
(e)
(ii) MERC vide its Tariff Order dated 11th June, 2004, had directed the Group to treat the investment in its wind energy
project as outside the Mumbai Licensed Area, consider a normative Debt Equity ratio of 70:30 to fund the Group’s
fresh capital investments effective 1st April, 2003 and had also allowed a normative interest charge @ 10% p.a. on
the said normative debt. The change to the Clear Profit and Reasonable Return (consequent to the change in the
capital base) as a result of the above mentioned directives for the period upto 31st March, 2004, has been adjusted
by MERC from the Statutory Reserves along with the disputed Standby Charges referred to in Note 36(e)(i) above.
Consequently, the effect of these adjustments would be made with the adjustments pertaining to the Standby
Charges dispute as mentioned in Note 36(e)(i) above.
(f ) The Group has filed a petition on 23rd November, 2012 with DERC for determination of the final generation tariff for
the Rithala Plant under section 62 read with Part VII of the Electricity Act, 2003 and the Delhi Electricity Regulatory
Commission (Terms and Conditions for Determination of Generation Tariff ) Regulations, 2007 (from commercial operation
date i.e. 5th February, 2011 to 31st March, 2012) and the Delhi Electricity Regulatory Commission (Terms and Conditions
for Determination of Generation Tariff ) Regulations, 2011 (for MYT period FY 2013 to 2015). Pending determination of
the final generation tariff during the period Rithala plant was operational DERC had provisionally allowed the power
purchase cost at the rate equivalent to the Unschedule Interchange rates for units generated during the time when the
Group was under-drawing from the grid and at average rate power purchased during the period when the Group was
over-drawing from the grid, instead of the actual cost of generation. Further, no recovery of fixed cost had been allowed
for the period when plant was not operational due to non-availability of gas.
Aggrieved by the approach adopted by the DERC for provisional/non-allowance of Rithala power purchase cost,
the Group had preferred this issue in Appeal no 271/2013, 246/2014 and 301/2015 before the APTEL. During the
reporting period Appeal no 271/2013 has been disposed off, wherein on the issue of Rithala power plant tariff, the
DERC has been directed to release the tariff order within four months’ time from the date of judgement i.e. 20th July,
2016. Though the time allowed in said appeal is already over but the DERC is still in the process of doing prudence
checking and seeking all stakeholders comments vide public notice dated 25th February, 2017. Pending release of
Tariff order, the Group has been continuing the billing from Rithala plant based on applicable regulations and also
adjusted a sum of ` 321.19 crore on the ground of opinion of legal expert/ management , prudence and conservative
approach. The next date of hearing of Appeal no 246/2014 and 301/2015 has been fixed for 15th May, 2017 and 11th
May, 2017 respectively.
The Group has not made any adjustment to the carrying amount of regulatory deferral asset of ` 591.61 crore (net of
provision of ` 321.19 crore) based on the appeal filed by it against the Order of the Delhi Electricity Regulatory Commission
(DERC) and supported by a legal opinion that the Order can be successfully challenged. The adjustment, including any
consequent impact, if any, will be recorded on the final outcome of the matter.
(g) The Group had received demands from various levels of sales tax departments in respect of entry tax on imports
aggregating ` 2,213.64 crore (including interest of ` 643.99 crore and penalty of ` 740.89 crore) for financial years
2005-06 to 2012-13. The Group paid ` 246.21 crore under protest. The Hon’ble Bombay High Court upheld the
levy, in respect of an appeal filed by the Group. The Group filed a Special Leave Petition against the above Order
before the Hon’ble Supreme Court, which extended the interim stay granted by the Hon’ble Bombay High Court
and requested to list the matter after pleadings are completed. The Management is of the view, supported by legal
opinions, that the Group has a strong case on merits. Accordingly, ` 1,967.43 crore (including interest of ` 643.99
crore and penalty of ` 740.89 crore) will be accounted by the Group based on the final outcome of the matter (Refer
Note 36(a)(i)).
37. Other Disputes
In the matter of claims raised by the Group on R-Infra, towards (i) the difference in the energy charges for the period March
2001 to May 2004 and (ii) for minimum off-take charges of energy for the period 1998 to 2000, MERC has issued an Order dated
12th December, 2007 in favour of the Group. The total amount payable by R-Infra, including interest, is estimated to be ` 323.87
crore as on 31st December, 2007. ATE in its Order dated 12th May, 2008 on appeal by R-Infra, has directed R-Infra to pay the
difference in the energy charges amounting to ` 34.98 crore for the period March 2001 to May 2004. In respect of the minimum
off-take charges of energy for the period 1998 to 2000 claimed by the Group from R-Infra, ATE has directed MERC that the issue
be examined afresh and after the decision of the Hon’ble Supreme Court in the Appeals relating to the distribution licence and
rebates given by R-Infra. The Group and R-Infra had filed appeals in the Hon’ble Supreme Court. The Hon’ble Supreme Court,
vide its Order dated 14th December, 2009, has granted stay against ATE Order and has directed R-Infra to deposit with the
Hon’ble Supreme Court, a sum of ` 25.00 crore and furnish bank guarantee of ` 9.98 crore. The Group had withdrawn the above
mentioned sum subject to an undertaking to refund the amount with interest, in the event the Appeal is decided against the
Group. On grounds of prudence, the Group has not recognised any income arising in respect of the matters.
Consolidated Financials I 245
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
38. Employee benefit plan
1.
Defined Contribution plan
The Group makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans
for eligible employees. Under the schemes, the Group is required to contribute a specified percentage of the payroll costs to
fund the benefits. The providend fund contributions as specified under the law are paid to the provident fund trust or statutory
providend fund authorities. In case of fund managed by trust, the Group is generally liable for annual contributions and any
shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions
and shortfall, if any, as expenses in the year they are incurred. Having regard to the assets of the fund and the return on the
investments, the Group does not expect any shortfall in the foreseeable future. In case of Group companies contributing to
statutory provident fund authorities, they are liable for annual contribution, which is recognised as expense in the year it is
incurred. The superannuation contribution is paid to the superannuation fund trust and is recognised as an expense in the
year it is incurred.
The Group has recognised ` 60.89 crore (31st March, 2016 - ` 47.87 crore) for provident fund contributions and
` 10.77 crore (31st March, 2016 - ` 10.60 crore) for superannuation contributions in the Statement of Profit and Loss. The
contributions payable to these plans by the Group are at rates specified in the rules of the schemes.
2.
Defined benefit plans
2.1
The Group operates the following unfunded/funded defined benefit plans:
Post-Employment Medical Benefits
The Group provides certain post-employment health care benefits to superannuated employees at some of its locations.
In terms of the plan, the retired employees can avail free medical check-up and medicines at Group’s facilities. This is an
unfunded Plan.
Pension (including Director pension)
The Group operates a defined benefit pension plan for employees who have completed 15 years of continuous service. The
plan provides benefits to members in the form of a pre-determined lump sum payment on retirement. Executive Director,
on retirement, is entitled to pension payable for life including HRA benefit. The level of benefit is approved by the Board of
Directors of the Group from time to time. This is an unfunded plan.
Ex-Gratia Death Benefit
The Group has a defined benefit plan granting ex-gratia in case of death during service. The benefit consists of a pre-
determined lump sum amount along with a sum determined based on the last drawn basic salary per month and the length
of service. This is an unfunded plan.
Retirement Gift
The Group has a defined benefit plan granting a pre-determined sum as retirement gift on superannuation of an employee.
This is an unfunded plan.
Gratuity
The Group has a defined benefit gratuity plan. The gratuity plan is primarily governed by the Payment of Gratuity Act, 1972.
Employees who are in continuous service for a period of five years are eligible for gratuity. The level of benefits provided
depends on the member’s length of service and salary at the retirement date. The gratuity plan is a combination of funded
plan and unfunded plan for various companies in the Group. In case of funded plan, the fund has the form of a trust and is
governed by Trustees appointed by the Group. The Tustees are responsible for the administration of the plan assets and for
the definition of the investment strategy in accordance with the regulations. The funds are deployed in recognised insurer
managed funds in India. The Group does not fully fund the liability and maintains a target level of funding to be maintained
over a period of time based on estimates of expected gratuity payments.
246 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
38. Employee benefit plan (Contd.)
2.2
The principal assumptions used for the purposes of the actuarial valuations were as follows:
Valuation as at
31st March, 2017
31st March, 2016
1st April, 2015
Discount Rate/Expected Rate of Return on Plan
Assets ..................................................................................
6.90% to 7.51% p.a.
7.56% to 8.20% p.a.
7.80% to 7.99% p.a.
Salary Growth Rate ........................................................
6% to 8% p.a.
Turnover Rate ..................................................................
8% to 15% p.a.
Pension Increase Rate ...................................................
3% to 5% p.a.
6% to 11% p.a.
8% to 15% p.a.
3% to 5% p.a.
6% to 11% p.a.
8% to 15% p.a.
3% to 5% p.a.
Mortality Table .................................................................
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Annual Increase in Healthcare Cost .........................
8% p.a.
8% p.a.
8% p.a.
2.3
The amounts recognised in the financial statements and the movements in the net defined benefit obligations over
the year are as follows:
Funded Plan: Gratuity
Present value
of obligation
` crore
Fair value of
plan assets
` crore
Balance as at 1st April, 2015 .................................................................................
245.67
(206.83)
Current service cost .....................................................................................................
Past service cost ............................................................................................................
Interest Cost/(Income) ................................................................................................
Amount recognised in statement of profit and loss .................................
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost ...............
Actuarial losses arising from changes in demographic assumptions ...............
Actuarial losses arising from changes in financial assumptions .................
Actuarial (gains) arising from experience ............................................................
Amount recognised in other comprehensive income ..............................
Employer contribution ...............................................................................................
Benefits paid ..................................................................................................................
Acquisitions credit .......................................................................................................
Balance as at 31st March, 2016 ...........................................................................
17.87
Nil
18.76
36.63
Nil
0.22
2.42
(1.03)
1.61
Nil
(19.34)
0.57
265.14
Nil
Nil
(16.48)
(16.48)
6.44
Nil
Nil
Nil
6.44
(5.93)
1.13
Nil
(221.67)
Net amount
` crore
38.84
17.87
Nil
2.28
20.15
6.44
0.22
2.42
(1.03)
8.05
(5.93)
(18.21)
0.57
43.47
Consolidated Financials I 247
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
38. Employee benefit plan (Contd.)
Funded Plan - Gratuity
Present value
of obligation
` crore
Fair value of
plan assets
` crore
Balance as at 1st April, 2016 .................................................................................
265.14
(221.67)
Current service cost .....................................................................................................
Past service cost ............................................................................................................
Interest Cost/(Income) ................................................................................................
Amount recognised in statement of profit and loss .................................
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in income .........................
Actuarial losses arising from changes in demographic assumptions ...............
Actuarial losses arising from changes in financial assumptions .................
Actuarial losses arising from experience .............................................................
Amount recognised in other comprehensive income ..............................
Employer contribution ...............................................................................................
Benefits paid ..................................................................................................................
Acquisitions cost ...........................................................................................................
Balance as at 31st March, 2017 ...........................................................................
18.82
12.42
19.25
50.49
Nil
0.14
14.75
6.63
21.52
Nil
(26.42)
(2.35)
308.38
Composition of the plan assets is as follows:
Insurer Managed Funds*
Net amount
` crore
43.47
18.82
12.42
1.25
32.49
Nil
Nil
(18.00)
(18.00)
(12.78)
(12.78)
Nil
Nil
Nil
(12.78)
(27.01)
0.95
(0.05)
(278.56)
0.14
14.75
6.63
8.74
(27.01)
(25.47)
(2.40)
29.82
* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition
of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not
been disclosed.
Unfunded Plan - Gratuity and Other Defined Benefit Plans:
Balance as at 1st April, 2015 ..............................................................................................................
Current service cost ..................................................................................................................................
Past service cost .........................................................................................................................................
Interest Cost ................................................................................................................................................
Amount recognised in statement of profit and loss .............................................................
Remeasurement (gains)/losses
Actuarial (gains)/losses arising from changes in demographic assumptions .....................
Actuarial (gains)/losses arising from changes in financial assumptions ...............................
Actuarial losses arising from experience ..........................................................................................
Amount recognised in other comprehensive income ...........................................................
Benefits paid ...............................................................................................................................................
Acquisitions credit ....................................................................................................................................
Balance as at 31st March, 2016 ........................................................................................................
Gratuity
Amount
` crore
9.19
Other Defined
Benefit Plans
Amount
` crore
62.22
0.87
Nil
0.74
1.61
Nil
(0.13)
0.68
0.55
(0.32)
0.49
11.52
2.37
0.07
3.46
5.90
Nil
0.97
2.05
3.02
(5.06)
Nil
66.08
248 I Consolidated Financials
The Tata Power Company Limited
38. Employee benefit plan (Contd.)
Notes to the Consolidated Financial Statements
Balance as at 1st April, 2016 .................................................................................................................
Current service cost .....................................................................................................................................
Past service cost ............................................................................................................................................
Interest Cost ...................................................................................................................................................
Amount recognised in statement of profit and loss .................................................................
Remeasurement (gains)/losses
Actuarial gains arising from changes in demographic assumptions ........................................
Actuarial (gains)/losses arising from changes in financial assumptions ..................................
Actuarial (gains)/losses arising from experience ..............................................................................
Amount recognised in other comprehensive income ..............................................................
Benefits paid ..................................................................................................................................................
Acquisitions credit .......................................................................................................................................
Balance as at 31st March, 2017 ...........................................................................................................
Gratuity
Amount
` crore
11.52
Other Defined
Benefit Plans
Amount
` crore
66.08
0.98
3.49
0.89
5.36
(0.54)
(4.38)
3.56
(1.36)
(1.28)
0.46
14.70
2.50
0.58
4.87
7.95
Nil
4.89
(0.20)
4.69
(5.99)
Nil
72.73
2.4
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:
Change in assumption
Increase in assumption
Decrease in assumption
31st
March,
2017
31st
March,
2016
31st
March,
2017
` crore
31st
March,
2016
` crore
31st
March,
2017
` crore
31st
March,
2016
` crore
Discount rate ..........................
0.50%
0.50% Decrease by
15.87
13.08
Increase by
17.24
14.24
Salary/Pension growth
rate .............................................
Claim rates ..............................
Mortality rates .......................
0.50%
0.50% Increase by
5%
20%
5% Decrease by
20% Decrease by
Healthcare cost .....................
0.50%
0.50% Increase by
16.46
18.20
3.81
1.97
11.68 Decrease by
6.23
1.22
Increase by
Increase by
3.32 Decrease by
15.30
16.37
4.87
1.77
10.96
5.26
1.40
2.70
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Consolidated Financials I 249
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
38. Employee benefit plan (Contd.)
2.5
The expected maturity analysis of undiscounted defined benefit obligation is as follows:
Within 1 year .................................................................................................................................
Between 1 - 2 years .....................................................................................................................
Between 2 - 3 years .....................................................................................................................
Between 3 - 4 years .....................................................................................................................
Between 4 - 5 years .....................................................................................................................
Beyond 5 years .............................................................................................................................
31st March, 2017
` crore
29.10
39.03
45.15
47.02
47.35
287.33
31st March, 2016
` crore
27.10
36.32
36.15
42.01
41.46
249.05
The weighted average duration of the defined benefit obligation is approximately 7 years (31st March, 2016 - 7 years).
2.6
Risk exposure:
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan assets underperform
this yield, it will result in deficit. These are subject to interest rate risk. To offset the risk, the plan assets have been deployed in
high grade insurer managed funds.
Inflation rate risk:
Higher than expected increase in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability
and retirement. The effect of these decrements on the defined benefit obligations is not straight forward and depends upon
the combination of salary increase, discount rate and vesting criterion.
39.
In respect of the contracts pertaining to the Strategic Engineering Business and Project Management Services of the Group,
disclosures required as per Ind AS 11 are as follows:
(a) Contract revenue recognised as revenue during the year ` 506.13 crore (31st March, 2016 - ` 549.88 crore).
(b)
In respect of contracts in progress –
(i) The aggregate amount of costs incurred and recognised profits upto 31st March, 2017 ` 1,042.45 crore (31st March,
2016 - ` 935.78 crore).
(ii) Advances and progress payments received as at 31st March, 2017 ` 615.09 crore (31st March, 2016 - ` 695.37 crore,
1st April, 2015 - ` 813.25 crore).
(iii) Retention money included as at 31st March, 2017 in Sundry Debtors ` 13.13 crore (31st March, 2016 - ` 8.47 crore,
1st April, 2015 - ` 6.32 crore).
(c)
(i) Gross amount due to customers for contract work as a liability as at 31st March, 2017 ` 44.20 crore (31st March, 2016
- ` 66.00 crore,1st April, 2015 - ` 191.44 crore).
(ii) Gross amount due from customers for contract work as an asset as at 31st March, 2017 ` 370.03 crore (31st March,
2016 - ` 240.40 crore, 1st April, 2015 - ` 191.89 crore).
250 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
40. Financial Instruments
1.
Financial Assets and Financial Liabilities
1.1
The carrying value and fair value of financial instruments by categories as at 31st March, 2017 is as follows:
Fair value
through P&L
Fair value
through OCI
Derivative
instruments
not in hedging
relationship
(NDH)
Amortised cost
Total carrying
value
` crore
Total fair value
Nil
Nil
Nil
1,010.18
Nil
Nil
Nil
Nil
Nil
1,010.18
Nil
Nil
Nil
Nil
Nil
Nil
Nil
980.56
Nil
Nil
Nil
Nil
Nil
980.56
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
37.97
37.97
835.22
119.08
4,020.04
Nil
386.18
1,081.92
732.60
612.63
1,748.11
9,535.78
835.22
119.08
4,020.04
1,990.74
386.18
1,081.92
732.60
612.63
1,786.08
11,564.49
835.22
119.08
4,020.04
1,990.74
397.84
1,081.92
732.60
612.63
1,786.08
11,576.15
Nil
5,564.57
5,564.57
5,564.57
Nil
944.51
944.51
48,815.41
3,662.40
58,042.38
48,815.41
4,606.91
58,986.89
49,050.73
4,606.91
59,222.21
Assets:
Cash and cash equivalents ...................
Other balances with banks ....................
Trade receivables ......................................
Investments #
Equity and Others .............................
Government Securities ...................
Unbilled revenues ....................................
Loans .............................................................
Finance Lease Receivables ....................
Other financial assets ..............................
Total ......................................................................
Liabilities:
Trade payables ...........................................
Borrowings (includes current
maturities) ...................................................
Other financial liabilities ........................
Total .....................................................................
The carrying value and fair value of financial instruments by categories as at 31st March, 2016 is as follows:
Fair value
through P&L
Fair value
through OCI
Derivative
instruments
not in hedging
relationship
(NDH)
Amortised cost
Total carrying
value
` crore
Total fair value
Nil
Nil
Nil
339.76
Nil
Nil
Nil
Nil
Nil
339.76
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,378.48
Nil
Nil
Nil
Nil
Nil
1,378.48
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
92.71
92.71
613.15
50.01
3,730.24
Nil
376.14
842.64
800.64
666.43
1,086.19
8,165.44
613.15
50.01
3,730.24
1,718.24
376.14
842.64
800.64
666.43
1,178.90
9,976.39
613.15
50.01
3,730.24
1,718.24
378.68
842.64
800.64
666.43
1,178.90
9,978.93
Nil
4,434.48
4,434.48
4,434.48
Nil
931.79
931.79
38,848.59
2,849.96
46,133.03
38,848.59
3,781.75
47,064.82
38,905.62
3,781.75
47,121.85
Assets:
Cash and cash equivalents ...................
Other balances with banks ....................
Trade receivables ......................................
Investments #
Equity and Others .............................
Government Securities ...................
Unbilled revenues ....................................
Loans .............................................................
Finance Lease Receivables ....................
Other financial assets ..............................
Total ......................................................................
Liabilities:
Trade payables ...........................................
Borrowings (includes current
maturities) ...................................................
Other financial liabilities ........................
Total .....................................................................
Consolidated Financials I 251
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
40. Financial Instruments (Contd.)
Notes to the Consolidated Financial Statements
The carrying value and fair value of financial instruments by categories as at 1st April, 2015 is as follows:
Fair value
through P&L
Fair value
through OCI
Derivative
instruments
not in hedging
relationship
(NDH)
Amortised cost
Total carrying
value
` crore
Total fair value
Assets:
Cash and cash equivalents ...................
Other balances with banks ....................
Trade receivables ......................................
Investments #
Nil
Nil
Nil
Nil
Nil
Nil
Equity and Others .............................
430.35
1,641.35
Government Securities ...................
Unbilled revenues ....................................
Loans .............................................................
Finance Lease Receivables ....................
Other financial assets ..............................
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Total ......................................................................
430.35
1,641.35
Liabilities:
Trade payables ...........................................
Borrowings (includes current
maturities) ...................................................
Other financial liabilities ........................
Total .....................................................................
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
# Other than investments accounted for using the Equity Method.
Note:
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
128.21
128.21
Nil
Nil
930.68
930.68
977.23
64.27
977.23
64.27
977.23
64.27
3,538.51
3,538.51
3,538.51
Nil
2,071.70
2,071.70
357.14
685.80
650.24
703.60
357.14
685.80
650.24
703.60
357.14
685.80
650.24
703.60
1,496.77
1,624.98
1,624.98
8,473.56
10,673.47
10,673.47
2,886.91
2,886.91
2,886.91
40,379.53
40,379.53
40,444.32
3,138.85
4,069.53
4,069.53
46,405.29
47,335.97
47,400.76
Certain unquoted equity instruments are not held for trading, instead they are held for medium or long-term strategic
purpose. Upon the application of Ind AS 109, the Group has chosen to designate these investments in equity instruments
as at FVTOCI as the directors believe this provides a more meaningful presentation for medium and long-term strategic
investments, than reflecting changes in fair value immediately in profit or loss.
1.2
Fair Value hierarchy:
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:
Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes quoted equity
instruments, government securities, traded debentures and mutual funds that have quoted price.
Level 2 Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices). This includes derivative financial instruments and non-convertible
cumulative redeemable preference shares.
Level 3 Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part
using a valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data. This includes unquoted equity shares.
252 I Consolidated Financials
The Tata Power Company Limited
40. Financial Instruments (Contd.)
Notes to the Consolidated Financial Statements
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets
that are not measured at fair value on a recurring basis (but fair value disclosures are required) :
Fair value hierarchy as at 31st March, 2017
Level 1
Level 2
Level 3
Total
` crore
Financial assets:
Government securities ................................................................................................
Mutual funds ...................................................................................................................
Equity Shares and others #
Quoted ......................................................................................................................
Unquoted ................................................................................................................
Derivative financial assets ..........................................................................................
Total ...................................................................................................................................
Financial liabilities:
Debentures ......................................................................................................................
Non-convertible cumulative redeemable preference shares........................
Derivative financial liabilities ....................................................................................
Total ...................................................................................................................................
397.84
975.78
236.73
Nil
Nil
1,610.35
11,971.45
Nil
Nil
11,971.45
Nil
Nil
Nil
Nil
37.97
37.97
Nil
245.00
944.51
1,189.51
Nil
Nil
Nil
778.23
Nil
778.23
Nil
Nil
Nil
Nil
397.84
975.78
236.73
778.23
37.97
2,426.55
11,971.45
245.00
944.51
13,160.96
` crore
Fair value hierarchy as at 31st March, 2016
Level 1
Level 2
Level 3
Total
Financial assets:
Government securities ................................................................................................
Mutual funds ...................................................................................................................
Equity Shares and others #
Quoted ......................................................................................................................
Unquoted ................................................................................................................
Derivative financial assets ..........................................................................................
Total ...................................................................................................................................
Financial liabilities:
Debentures ......................................................................................................................
Non-convertible cumulative redeemable preference shares........................
Derivative financial liabilities ....................................................................................
Total ...................................................................................................................................
378.68
311.38
398.78
Nil
Nil
1,088.84
6,068.10
Nil
Nil
6,068.10
Nil
Nil
Nil
Nil
92.71
92.71
Nil
245.00
931.79
1,176.79
Nil
Nil
378.68
311.38
Nil
1,008.08
Nil
1,008.08
Nil
Nil
Nil
Nil
398.78
1,008.08
92.71
2,189.63
6,068.10
245.00
931.79
7,244.89
` crore
Financial assets:
Government securities ................................................................................................
Mutual funds ...................................................................................................................
Equity Shares and others #
Quoted ......................................................................................................................
Unquoted ................................................................................................................
Derivative financial assets ..........................................................................................
Total ...................................................................................................................................
Financial liabilities:
Debentures ......................................................................................................................
Non-convertible cumulative redeemable preference shares........................
Derivative financial liabilities ....................................................................................
Total ...................................................................................................................................
# Other than investments accounted for using the Equity Method.
Fair value hierarchy as at 1st April, 2015
Level 1
Level 2
Level 3
Total
357.14
409.18
425.32
Nil
Nil
1,191.64
4,911.18
Nil
Nil
4,911.18
Nil
Nil
Nil
Nil
128.21
128.21
Nil
245.00
930.68
1,175.68
Nil
Nil
Nil
1,237.20
Nil
1,237.20
Nil
Nil
Nil
Nil
357.14
409.18
425.32
1,237.20
128.21
2,557.05
4,911.18
245.00
930.68
6,086.86
Consolidated Financials I 253
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
Valuation technique(s) and key input(s):
Level 1 The fair value of mutual funds, government securities, quoted equity shares and debentures is based on quoted price.
Level 2 Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets
or inputs that are directly or indirectly observable in the marketplace. The fair value of non convertible cumulative
redeemable preference shares is based on discounted cash flow at a discount rate that reflects the current borrowing
rate at the end of reporting period.
Level 3 The fair value of unquoted equity shares is determined using income approach (discounted cash flow), market observable
price method, option pricing model, etc.
In case of investment in TTSL shares, in the absence of updated information as stated in Note 34(iii), the fair value has
been determined based on third party valuation report obtained from TTSL as at 30th September, 2016.
The cost of certain unquoted investments approximate their fair value because there is a wide range of possible fair
value measurements and the cost represents the best estimate of fair value within that range.
1.3
Reconciliation of level 3 fair value measurements
For the year ended 31st March, 2017
Opening balance ..............................................................................................
Total gains or (losses) ......................................................................................
Held for sale/Disposals/Settlements .........................................................
Closing balance ...............................................................................................
For the year ended 31st March, 2016
Opening balance ..............................................................................................
Total gains or (losses) ......................................................................................
Held for sale/Disposals/Settlements .........................................................
Closing balance ...............................................................................................
Unlisted shares irrevocably
designated as at FVTOCI
1,007.93
Unlisted shares irrevocably
designated as at FVTPL
0.15
` crore
(131.80)
(98.04)
778.09
(0.01)
Nil
0.14
` crore
Unlisted shares irrevocably
designated as at FVTOCI
1,237.10
Unlisted shares irrevocably
designated as at FVTPL
0.10
(229.17)
Nil
1,007.93
0.05
Nil
0.15
All gains and losses included in other comprehensive income relate to unlisted shares held at the end of the reporting period
and are reported under “Equity Instruments through Other Comprehensive Income”.
2.
Capital Management & Gearing Ratio
The Group’s capital management is intended to create value for shareholders by facilitating the meeting of its long-term and
short-term goals. Its Capital structure consists of net debt (borrowings as detailed in notes below) and total equity.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
Debt (i) ..................................................................................................
Cash and Bank balances (including cash and bank
balances in a disposal Group held for sale) .............................
Net debt ..............................................................................................
Total Equity (ii) .................................................................................
Net debt to equity ratio (%) .........................................................
31st March, 2017
` crore
48,815.41
31st March, 2016
` crore
38,848.59
1st April, 2015
` crore
40,379.53
954.30
47,861.11
15,148.46
315.95
663.16
38,185.43
14,883.19
256.57
1,041.50
39,338.03
14,658.73
268.36
254 I Consolidated Financials
The Tata Power Company Limited
40. Financial Instruments (Contd.)
Notes to the Consolidated Financial Statements
(i) Debt is defined as long-term borrowings (including current maturities) and short-term borrowings (excluding derivative,
financial guarantee contracts and contingent considerations).
(ii) Equity is defined as Equity share capital, Unsecured perpetual securities and other equity including reserves and surplus
and non-controlling interests.
3.
Financial risk management
In its ordinary operations, the Group’s activities expose it to the various types of risks, which are associated with the financial
instruments and markets in which it operates. The Group has a risk management policy which covers the foreign exchanges risks
and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management
policy is approved by the board of directors. The following is the summary of the main risks:
3.1 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate
risk), will affect the Group’s income or value of it’s holding of financial instruments. The objective of market risk management
is to manage and control market risk exposures within acceptable parameters, while optimising the return.
3.1.1 Foreign currency risk management
Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency
that is not the functional currency of the respective consolidated entities.
The Group is exposed to foreign exchange risk through its operations in international projects and purchase of coal from
Indonesia and elsewhere, and overseas borrowings. The results of the Group’s operations can be affected as the rupee appreciates/
depreciates against these currencies. The Group enters into derivative financial instruments such as foreign exchange forward
and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.
The following table analyses foreign currency assets and liabilities on balance sheet dates:
Foreign Currency
Liabilities
In USD ..................................................................................
In EURO ...............................................................................
In GBP ...................................................................................
In JPY ....................................................................................
In SGD ...................................................................................
In ZAR ...................................................................................
In AUD .................................................................................
Foreign Currency
Liabilities
In USD ..................................................................................
In EURO ...............................................................................
In GBP ...................................................................................
In ZAR ..................................................................................
In SGD ..................................................................................
In VND ..................................................................................
In AUD ..................................................................................
In IDR .....................................................................................
In TAKA ................................................................................
* Denotes figures below ` 50,000/-.
31st March, 2017
31st March, 2016
1st April, 2015
Foreign Currency
(in millions)
` crore
1,770.54 11,481.98
55.73
29.38
1.56
2.89
Nil
Nil
8.04
3.63
26.83
0.45
Nil
Nil
Foreign Currency
(in millions)
1,467.22
13.86
8.17
40.04
0.57
0.11
Nil
` crore
9,719.95
104.45
77.98
2.36
3.78
0.75
0.01
Foreign Currency
(in millions)
1,404.80
12.39
9.24
188.42
0.73
Nil
Nil
31st March, 2017
31st March, 2016
1st April, 2015
Foreign Currency
(in millions)
4.52
0.17
0.06
1.29
0.63
77.48
0.26
0.03
0.21
` crore
29.33
1.17
0.46
7.10
4.03
0.01
1.71
0.18
0.02
Foreign Currency
(in millions)
9.03
0.01
Nil
1.29
0.83
11.24
0.60
0.04
0.21
` crore
59.82
0.10
Nil
4.11
5.51
*
3.98
0.24
0.02
Foreign Currency
(in millions)
2.00
0.01
Nil
Nil
0.91
Nil
0.79
0.04
0.22
` crore
8,779.65
83.28
85.45
9.82
4.57
Nil
Nil
` crore
12.51
0.09
Nil
Nil
5.68
Nil
4.93
0.24
0.02
Consolidated Financials I 255
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
(a) Foreign currency sensitivity analysis
For the year ended March 31, 2017 and 31st March, 2016, the impact of every rupee 1 depreciation / appreciation in the
exchange rate between the Indian Rupee and U.S. Dollar on Profit before tax of the Group, given in below table.
As at 31st March, 2017
As at 31st March, 2016
Rupee depreciate
by INR 1 against
USD
(+) ` 106.58 crore
Rupee appreciate
by INR 1 against
USD
(-) ` 106.96 crore
Rupee depreciate
by INR 1 against
USD
(+) ` 69.47 crore
Rupee appreciate
by INR 1 against
USD
(-) ` 68.14 crore
(-) ` 176.60 crore
(+) ` 176.60 crore
(-) ` 145.82 crore
(+) ` 145.82 crore
On Forward and Option Contracts ...
On Foreign Currency Liabilities
(net) (Refer Note 2 below) ...................
Notes:
1) +/- Gain/Loss
2) The impact of depreciation/ appreciation on foreign currency other than U.S. Dollar on profit before tax of the
Group is not material.
(b) Derivative financial instruments
The Group holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the
risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank
or a Financial Institution. These derivative financial instrument are valued based on quoted prices for similar asset and
liabilities in active markets or inputs that is directly or indirectly observable in the marketplace.
The following table gives details in respect of outstanding foreign exchange forward and option contracts:
Outstanding Contracts
31st March, 2017
Buy/Sell
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair Value in
` crore
Other Derivatives
Forward contract
In USD .....................................................................
In EURO ..................................................................
In GBP .....................................................................
Buy
Buy
Buy
1,172.65
7,604.66
(393.58)
6.81
3.25
47.18
26.27
(1.10)
(0.40)
Option contract
In USD .....................................................................
Buy
420.90
2,729.54
(47.68)
Outstanding Contracts
31st March, 2016
Buy/Sell
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair Value in
` crore
Other Derivatives
Forward contract
In USD .....................................................................
In EURO ..................................................................
In GBP .....................................................................
In JPY.......................................................................
Buy
Buy
Buy
Buy
Option contract
499.00
12.45
8.06
30.94
3,305.75
(54.43)
93.81
76.94
1.82
2.08
(2.29)
0.13
In USD .....................................................................
Buy
645.51
4,276.32
54.83
256 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
Outstanding Contracts
Buy/Sell
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair Value in
` crore
1st April, 2015
Other Derivatives
Forward contract
In USD .....................................................................
In EURO ..................................................................
In GBP .....................................................................
In JPY.......................................................................
Option contract
In USD .....................................................................
Buy
Buy
Buy
Buy
Buy
545.84
11.92
6.57
81.36
595.22
3,411.38
80.09
60.74
4.24
3,719.95
(21.92)
(2.85)
(1.26)
(0.01)
64.46
3.1.2
Interest rate sensitivity:
Interest rate risk management
Interest rate risk arises from the potential changes in interest rates that may have adverse effects on the Group in the reporting
period or in future years.
(a)
The sensitivity analysis below have been determined based on exposure to interest rates for term loans and debentures at the
end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant
throughout the reporting period in case of term loans and debentures that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on Interest
expense for the respective financial years and consequent effect on Group’s profit in that financial year would have been as
below:
As at 31st March, 2017
As at 31st March, 2016
50 bps increase
(+) ` 110.26 crore
(-) ` 110.26 crore
50 bps decrease
(-) ` 110.26 crore
(+) ` 110.26 crore
Interest expense on loan .....................
Effect on profit before tax ...................
(b)
Interest rate swap contracts:
An interest rate swap is an agreement between two counterparties in which one stream of future interest payments is exchanged
for another based on a specified principal amount. Interest rate swaps usually involve the exchange of a fixed interest rate
for a floating rate, or vice versa, to reduce or increase exposure to fluctuations in interest rates or to obtain a marginally lower
interest rate than would have been possible without the swap. Interest rate swaps are the exchange of one set of cash flows
for another.
The following table gives details in respect of outstanding receive floating pay fixed contracts:
50 bps increase
(+) ` 107.14 crore
(-) ` 107.14 crore
50 bps decrease
(-) ` 107.14 crore
(+) ` 107.14 crore
31st March 2017
31st March 2016
31st March 2015
Nominal amounts
Fair value assets (liabilites)
Nominal amounts
Fair value assets (liabilites)
Nominal amounts
Fair value assets (liabilites)
Less than 1 year
4,101.76
17.06
1 to 5 years
2,432.36
(51.18)
2,699.59
(12.10)
5,546.65
(12.77)
1,906.66
(96.29)
1,915.40
(107.72)
` crore
5 years +
4,086.14
(429.66)
5,316.60
(731.01)
5,481.52
(720.40)
3.2
Credit risk management
The Group takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations resulting
in financial loss to the Group. Financial assets that potentially expose the Group to credit risks are listed below:
` crore
1st April 2015
3,538.51
Trade receivable ................................................................................................
650.24
Loan receivable .................................................................................................
703.60
Finance Lease Receivables ............................................................................
1,624.98
Other financial assets ......................................................................................
6,517.33
Total .............................................................................................
Refer Note 7.1 for credit risk and o
ther information in respect of trade receivables. Other receivables as stated above are
due from the parties under normal course of the business and as such the group believes exposure to credit risk to be minimal.
31st March 2017
4,020.04
732.60
612.63
1,786.08
7,151.35
31st March 2016
3,730.24
800.64
666.43
1,178.90
6,376.21
Consolidated Financials I 257
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
3.3
Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The Group corporate treasury department is responsible for maintaining funding limit to ensure liquidity. The maturity profile
of the financial assets are listed below:
Expected contractual maturity for Financial Liabilities
Upto 1 year
1 to 5 years
5+ years
Total Carrying Value
` crore
31st March, 2017
Non-Derivatives
Borrowings # ..............................................................................
Trade Payables ...........................................................................
Other Financial Liabilities ......................................................
Total Non-Derivative Liabilities ..............................
Derivatives
Other Financial Liabilities ......................................................
Total Derivative Liabilities ......................................
31st March, 2016
Non-Derivatives
Borrowings # ..............................................................................
Trade Payables ...........................................................................
Other Financial Liabilities ......................................................
Total Non-Derivative Liabilities ..............................
Derivatives
Other Financial Liabilities ......................................................
Total Derivative Liabilities ......................................
1st April, 2015
Non-Derivatives
Borrowings # ..............................................................................
Trade Payables ...........................................................................
Other Financial Liabilities ......................................................
Total Non-Derivative Liabilities ..............................
Derivatives
Other Financial Liabilities ......................................................
Total Derivative Liabilities ......................................
Notes:
17,343.21
5,529.00
2,227.36
25,099.57
944.51
944.51
8,623.17
4,401.36
1,709.40
14,733.93
931.79
931.79
11,382.16
2,856.99
2,131.01
16,370.16
930.68
930.68
24,250.76
35.57
40.38
24,326.71
28,590.49
Nil
502.51
29,093.00
70,184.46
5,564.57
2,770.25
78,519.28
49,707.56
5,564.57
2,770.25
58,042.38
Nil
Nil
Nil
Nil
944.51
944.51
944.51
944.51
22,313.24
33.12
40.81
22,387.17
28,987.76
Nil
530.76
29,518.52
59,924.17
4,434.48
2,280.97
66,639.62
Nil
Nil
NIl
Nil
931.79
931.79
22,688.77
29.92
37.73
22,756.42
26,093.04
Nil
488.10
26,581.14
60,163.97
2,886.91
2,656.84
65,707.72
Nil
Nil
Nil
Nil
930.68
930.68
39,417.58
4,434.48
2,280.97
46,133.03
931.79
931.79
40,861.54
2,886.91
2,656.84
46,405.29
930.68
930.68
# The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including
interest that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing
options available with the group. The amounts included above for variable interest rate instruments for non-derivative
liabilities is subject to change if changes in variable interest rates differ to those estimates of interest rates determined
at the end of the reporting period.
The Group expects to meet its obligations from operating cash flows and proceeds of maturing financial assets.
In case of borrowings availed by the Group for its project at Mundra, the Group was unable to comply with certain
financial covenants for the reported periods and accordingly non-current portion of ` 9,112.21 crore (31st March,
2016 - ` 9,886.97 crore, 1st April, 2015 - ` 10,127.30 crore)has been classified under current financial liabilities. However
expected maturity of above loan has been disclosed based on the original maturity terms of the borrowings.
258 I Consolidated Financials
The Tata Power Company Limited
41. Related Party Disclosures:
Notes to the Consolidated Financial Statements
Disclosure as required by Ind AS 24 - “Related Party Disclosures” are as follows:
Names of the related parties and description of relationship:
(a)
Related parties where control exists:
Employment Benefit Funds
(i)
Tata Power Superannuation Fund
1)
Tata Power Gratuity Fund
2)
3)
Tata Power Consolidated Provident Fund
4) M/s Maithon Power Gratuity Fund (Fund)
5)
North Delhi Power Limited Employees Group Gratuity Assurance Scheme
(Gratuity Fund)
Special Voluntary Retirement Scheme Retirees Terminal Benefit Fund,
2004 (SVRS RTBF - 2004)
6)
(i)
Associates
(b) Other related parties (where transactions have taken place during the year and previous year / balances outstanding):
Tata Projects Ltd.
Yashmun Engineers Ltd.
Dagachhu Hydro Power Corporation Limited
Tata Communications Limited
Nelito Systems Ltd.
Panatone Finvest Ltd.
Cennergi Pty. Ltd.
Joint Venture Companies
(ii)
1)
2)
3)
4)
5)
6)
1)
2) Mandakini Coal Company Ltd.
Tubed Coal Mines Ltd.
3)
Itezhi Tezhi Power Corporation (w.e.f. 29th April, 2015)
4)
Adjaristsqali Georgia LLC
5)
LTH Milcom Private Limited
6)
Powerlinks Transmission Ltd.
7)
Industrial Energy Ltd.
8)
9)
Dugar Hydro Power Ltd.
10) Koromkheti Georgia LLC
11) PT Arutmin Indonesia
12) PT Kaltim Prima Coal
13) PT Mitratama Perkasa
14) PT Dwikarya Prima Abadi
15) Resurgent Power Ventures Pte Limited
16) PT Baramulti Sukessarana Tbk
17) PT Antang Gunung Meratus
18) Adjaristsqali Netherlands B.V.
19) Koromkheti Netherlands B.V.
20)
Indocoal Resources (Cayman) Limited
Tata Sons Ltd.
(c)
(i)
Promoters holding together with its
Subsidiary more than 20%
Subsidiaries and Jointly Controlled
E n t i t i e s o f P r o m o t e r s ( w h e r e
transactions have taken place during
the year and previous year / balances
outstanding) :
1)
2)
Drive India Enterprise Solutions Limited (ceased w.e.f. 01.09.2015)
e-Nxt Financials Limited (merged with Tata Business Support Services
Limited, the Appointed date i.e. 01.04.2014, Effective date: 01.07.2015)
Consolidated Financials I 259
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
41. Related Party Disclosures: (Contd.)
(c)
(d) Key Management Personnel
260 I Consolidated Financials
3)
4)
5)
6)
7)
8)
9)
Ewart Investments Limited
Tata Africa Holdings (SA) (Proprietary) Limited
Tata AG, Zug
Tata AIG General Insurance Company Limited
Tata Business Support Services Limited
Tata Capital Limited
Tata Consultancy Services Limited
10) Tata Consulting Engineers Limited
11) Tata Housing Development Company Limited
12) Tata Industries Limited
13) Tata Interactive Systems AG
14) Tata Investment Corporation Limited
15) Tata Realty and Infrastructure Limited
16) Tata Teleservices (Maharashtra) Limited (w.e.f. 02.02.2017)
17) Tata Teleservices Limited (ceased to be an associate and is a subsidiary
w.e.f. 02.02.2017)
18) TC Travel and Services Limited
19) THDC Management Services Limited (formerly THDC Facility
Management Limited)
20) CMC Limited (Amalgamated with Tata Consultancy Services Limited.
Effective Date: 01.10.2015. Appointed Date: 01.04.2015)
21) Tata Cleantech Capital Limited
22) Tata Sky Limited
23) Tata Capital Financial Services Limited
24) Tata International Limited
25) Tata Capital Forex Limited (formerly TT Holdings & Services Limited)
26) C-Edge Technologies Limited
27) TC Travel and Services Limited
28) Tata Asset Management Limited
29)
Infiniti Retail Limited
30) Tata Advanced Materials Limited
1)
2)
3)
Anil Sardana - CEO & Managing Director
Ashok Sethi - COO & Executive Director
Ramesh Subramanyam - Chief Financial Officer
The Tata Power Company Limited Notes to the Consolidated Financial Statements
41. Related Party Disclosures: (Contd.)
(e) Details of Transactions:
Particulars
Purchase of goods/power (Net of
Discount Received on Prompt Payment)
Sale of goods/power (Net of Discount
on Prompt Payment) ..................................
Purchase of fixed assets ............................
Rendering of services ................................
Receiving of services .................................
Brand equity contribution ........................
Contribution to Employee Benefit Plans
Guarantee, collaterals etc. cancelled ......
Remuneration paid ....................................
Interest income .........................................
Interest paid ...............................................
Dividend received .....................................
Dividend paid ...........................................
Guarantee commission earned ...............
Loans given .................................................
Equity contribution (includes advance
towards equity contribution and
perpetual bonds) ........................................
Sale of Investments ....................................
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoter
Group
` crore
Promoters
131.74
3,316.92
96.33
2,637.65
51.18
47.63
2.67
8.44
14.04
10.52
21.17
23.20
-
-
-
-
-
-
-
-
0.64
0.01
0.17
0.09
12.52
12.26
-
-
-
-
-
-
-
-
-
-
-
0.09
0.01
-
403.31
458.88
-
0.08
-
-
-
-
50.05 $
283.16 $
-
-
22.98
44.79
38.68
64.43
490.43
211.93
-
-
1.23
1.31
59.21
186.82
0.15
33.06
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13.89 !
11.30 !
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
62.15
38.89
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03
0.44
46.40
55.65
7.75
7.41
10.76
9.87
55.69
105.25
-
-
-
-
-
-
-
-
-
0.07
16.28
15.71
-
0.05
1.85
4.18
-
-
-
16.84
-
-
-
-
-
-
-
-
6.77
-
0.56
0.52
0.73
0.52
19.66
23.93
-
-
-
-
-
-
-
-
-
-
-
16.02
109.17
106.84
-
-
-
-
-
-
83.28
-
Consolidated Financials I 261
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
41. Related Party Disclosures: (Contd.)
(e) Details of Transactions:
Particulars
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoter
Group
` crore
Promoters
Loans repaid (including loan converted
into equity) ...................................................
Deposits taken .............................................
Deposits refunded ......................................
Deposit given ..............................................
Deposit received back ................................
Purchase of Investments ...........................
Loan taken ....................................................
Balances outstanding
Perpetual Securities Outsanding
(including interest thereon) ...................... 2017
2016
2015
Other receivables ....................................... 2017
2016
2015
Loans given (including interest thereon) 2017
2016
2015
Loans provided for as doubtful
advances (including interest thereon) .... 2017
2016
2015
Deposits taken outstanding ..................... 2017
2016
2015
-
-
0.81
-
-
-
-
20.00
20.00
-
-
-
-
-
-
-
-
7.74
5.00
8.22
1.27
1.27
1.27
1.27
1.27
1.27
1.53
0.72
0.74
128.53
147.90
-
-
-
-
-
-
-
-
38.17
209.21
380.00
18.66
-
-
-
153.24
351.70
129.57
736.30
801.30
645.38
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1.94
2.94
4.16
-
-
-
-
-
-
-
-
-
-
16.55
8.11
8.86
7.74
18.07
-
-
-
-
0.20
312.29
-
-
136.17
136.21
136.17
15.47
9.50
13.59
-
-
-
-
-
-
9.33
8.99
18.15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
262 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
41. Related Party Disclosures: (Contd.)
(e) Details of Transactions:
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoter
Group
` crore
Promoters
Deposits given outstanding ...................... 2017
2016
2015
Security deposits given .............................. 2017
2016
2015
Dividend receivable .................................... 2017
2016
2015
Guarantees, collaterals etc. outstanding
2017
Letter of comfort outstanding .................. 2017
2016
2015
2016
2015
-
20.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8.64
-
31.62
78.34
384.22
77.47
71.54
83.03
Other payables ............................................ 2017
9.46
1,841.15
2016
2015
Loans taken (including interest thereon) 2017
2016
2015
Notes:
5.13
5.41
-
-
-
1,274.86
264.43
2,296.95
2,147.46
2,026.34
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17.23
34.66
28.69
-
-
-
6.10
1.86
5.30
-
-
-
-
-
-
-
-
0.50
-
-
-
-
-
-
-
-
-
23.51
27.53
26.96
-
-
-
$
!
Includes guarantees given and cancelled in foreign currency, converted in Indian currency by applying average exchange
rates.
Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised
as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts
provided on the basis of actuarial valuation, the same is not included above.
Previous year’s figures are in italics.
Consolidated Financials I 263
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
42. Segment Reporting:
Notes to the Consolidated Financial Statements
Information reported to the Chief Operating Decisions Maker (CODM) for the purpose of resource allocation and assessment
of segment performance focus on business segment comprises of Power and Others.
Specifically, the Group’s reportable segments under Ind AS are as follows:
Power: Comprises of Generation, Transmission, Distribution and Trading of power and related activities
Others: Comprises of Defence Electronics, Solar Equipment, Project Contracts/Infrastructure Management Services, Investment
and Property Development.
Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are
not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and
manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable
expenses.
42.1 Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All
other assets and liabilities are disclosed as unallocable.
Power
Others
` crore
Total
Inter
Segment
Revenue
24,879.40
26,184.34
3,205.88
2,397.78
797.02
56.47
27,288.26
28,525.65
3,158.22
4,480.56
308.96
170.12
62,266.42
52,946.21
4,116.79
3,117.77
3,467.18
4,650.68
(3,113.97)
(3,235.81)
Nil
2,435.51
(651.45)
(2,533.35)
(16.31)
(36.32)
45.82
(680.31)
(268.73)
600.40
1,217.29
185.99
948.56
786.39
66,383.21
56,063.98
15,753.14
13,995.73
82,136.35
70,059.71
REVENUE
External Revenue ..........................................................................
RESULT
Total Segment Results .................................................................
Finance Costs .................................................................................
Exceptional Item - Power Business .........................................
Exceptional Item - Unallocable ................................................
Unallocable Expense net of Unallocable Income .............
Income Taxes ..................................................................................
Net Profit/(Loss) for the year before share of net
Profit of Associates and Joint Ventures accounted
for using equity method
Share of net Profit of Associates and Joint Ventures
accounted for using equity method ......................................
Profit for the year .......................................................................
OTHER INFORMATION
Segment Assets .............................................................................
Unallocable Assets .......................................................................
Total Assets
264 I Consolidated Financials
The Tata Power Company Limited
42. Segment Reporting: (Contd.)
Notes to the Consolidated Financial Statements
Power
Others
Inter
Segment
Revenue
Segment Liabilities .......................................................................
Unallocable Liabilities .................................................................
12,700.73
11,484.52
1,465.82
1,096.15
Total Liabilities
Capital Expenditure .....................................................................
Expenses other
Non-cash
than Depreciation/
Amortisation (to the extent allocable to segment) ..........
Depreciation/Amortisation (to the extent allocable to
segment) ..........................................................................................
2,970.00
1,895.53
27.36
136.97
1,906.07
1,575.82
352.27
281.32
50.69
17.32
82.52
72.91
42.2 Reconciliation of Revenue
Revenue from Operations (Net) ................................................................................................................
Less: Regulatory expense (net) ......................................................................................................
Add/(Less): Regulatory income/(expense) (net) in respect of earlier years ................................
Total Segment Revenue as reported above..........................................................................................
Note: Previous year’s figures are in italics
42.3 Geographical Information
` crore
Total
14,166.55
12,580.67
52,821.34
42,595.85
66,987.89
55,176.52
3,322.27
2,176.85
78.05
154.29
1,988.59
1,648.73
31st March,
2017
` crore
27,897.72
(686.46)
77.00
27,288.26
31st March,
2016
` crore
29,500.89
(807.97)
(167.27)
28,525.65
The Group operates in two principal geographical areas - Domestic and Overseas
The Group’s revenue from continuing operations from external customers by location of operations and information about its
non-current assets by location of assets are detailed below
Particulars
Revenue from External Customers ...........................................................................
Segment Assets
Non-Current Assets ...............................................................................................
Current Assets .........................................................................................................
Regulatory Deferral Account - Assets .............................................................
Total Segment Assets ............................................................................................
Unallocable Assets ..........................................................................................................
Total Assets ........................................................................................................................
Capital Expenditure ........................................................................................................
Note: Previous year’s figures are in italics.
Domestic
27,041.50
28,372.67
50,445.34
40,088.69
8,072.66
7,347.59
6,481.35
7,334.28
64,999.35
54,770.56
Overseas
246.76
152.98
1,283.55
1,190.88
100.31
102.54
Nil
Nil
1,383.86
1,293.42
3,141.46
2,088.91
180.81
87.94
` crore
Total
27,288.26
28,525.65
51,728.89
41,279.57
8,172.97
7,450.13
6,481.35
7,334.28
66,383.21
56,063.98
15,753.14
13,995.73
82,136.35
70,059.71
3,322.27
2,176.85
Consolidated Financials I 265
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
43. Earnings Per Share:
Notes to the Consolidated Financial Statements
Basic earnings per share
Profit for the year attributable to Owners of the Company (` crore) .............................
Less: Distribution on Unsecured Perpetual Securities (Net of Tax) ( ` crore) ................
Net profit for the year attributable to Owners of the Company ( ` crore) ....................
The weighted average number of equity shares for basic earnings per share (Nos.)
Par value per share (in `) .................................................................................................................
Basic earnings per share (in `) ......................................................................................................
Diluted earning per share (in `) ...................................................................................................
31st March, 2017
31st March, 2016
745.48
111.82
633.66
270,76,05,570
1.00
2.34
2.34
662.20
111.82
550.38
270,76,05,570
1.00
2.03
2.03
Note : The Company did not have any potentially dilutive securities in any of the period presented.
44. Disclosure in terms of G.S.R.307(E) dated 30th March, 2017 issued by the Ministry of Corporate Affairs, Government of India
The details of Specified Bank Notes (SBN) held and transacted by the Group during the period from 8th November, 2016 to
30th December, 2016, the denomination wise SBNs and other notes as per the notification is given below :
Closing cash in hand as on 8th November, 2016 ......................
Add : Permitted receipts .....................................................................
Less : Permitted payments .................................................................
Less : Amount deposited in Banks ..................................................
Closing cash in hand as on 30th December, 2016 ....................
Specified Bank
notes
` crore
2.46
130.14
-
132.58
0.02
Other
denomination
notes
` crore
0.45
30.46
0.05
29.68
1.18
Total
` crore
2.91
160.60
0.05
162.26
1.20
During the period from 10th November, 2016 to 15th December 2016, the electricity distribution business of the Group
was allowed to receive SBNs as a legal tender from its customers towards payment of their electricity dues. The Group has
designated collection centres which are permitted to receive cash from its customers. Cash collected at these centres is
directly deposited into Group’s Bank accounts. The Group has received details of SBNs deposited from respective banks and
has considered amount collected as equivalent to amount deposited.
45
Business Combinations
45.1 Subsidiaries Acquired:
Name of the acquired Subsidiaries
Principal
Activity
Date of Acquisition
` crore
Consideration
transferred
Proportion
of voting
equity interest
acquired
Indo Rama Renewable Jath Ltd. (IRRJL)
Welspun Renewable Energy Private Ltd. (WREPL)
Welspun Urja India Ltd. (WUIL)
Total
Wind Energy
Generation
Renewable
Energy
Generation
Energy
Generation
19th May, 2016
100%
84.13
14th September, 2016
100%
3,782.30
30th January, 2017
100%
3.76
3,870.19
The above subsidiaries were acquired so as to continue the expansion of the Group’s activities into renewables energy portfolio.
266 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
45
Business Combinations (Contd.)
45.2 Consideration transferred
Cash paid (Excluding acquisition cost) ..........
Contingent Consideration .................................
IRRJL
84.13
Nil
84.13
WREPL
3,604.74
177.56
3,782.30
WUIL
3.76
Nil
3.76
` crore
Total
3,692.63
177.56
3,870.19
Under the Contingent Consideration arrangement, the Group is required to pay additional consideration of ` 177.56 crore to
the transferor, if the transferor comply with the certain conditions which are mainly project completion, actual realisation of
working capital and Plant Load Factor (PLF) Incentives, the majority of which is expected to be completed within the year of
arrangement. ` 177.56 crore represents the estimated fair value of this obligation at the acquisition date.
Acquisition related costs amounting to ` 21.31 crore have been excluded from the consideration transferred and have been
recognised as an expenses in profit and loss in the current year, within the “Other expenses” line item.
45.3 Assets acquired and liabilities recognised at the date of acquisition
Current assets
Cash and Cash Equivalents .........................................
Bank balances other than above ..............................
Current Investments ......................................................
Trade and other receivables .......................................
Inventories ........................................................................
Non-Current assets
Property, Plant and Equipment .................................
Capital Work-in-Progress .............................................
Deferred Tax Assets ........................................................
Intangible Assets ............................................................
Other Non-Current Assets ...........................................
Current Liabilities
Trade and other Payables ............................................
Borrowings........................................................................
Non-Current liabilities
Deferred Tax Labilities...................................................
Other Non-Current Payables ......................................
Borrowings........................................................................
Net identifiable assets acquired ...........................
Consideration transferred ...........................................
Add: Non-Controlling Interest ...................................
Less: fair value of identifiable net assets
acquired .............................................................................
Goodwill arising on acquisition ............................
IRRJL
WREPL
WUIL
0.04
Nil
7.36
20.83
Nil
187.70
Nil
0.67
12.90
Nil
(0.81)
Nil
(8.05)
NIl
(149.61)
71.03
84.13
Nil
(71.03)
13.10
57.73
74.26
30.16
410.65
21.02
5,462.30
406.74
36.13
1,372.60
391.95
(395.72)
(3.95)
(262.60)
(8.23)
(5,493.63)
2,099.41
3,782.30
30.95
(2,099.41)
1,713.84
0.03
Nil
Nil
0.13
Nil
4.57
Nil
Nil
Nil
Nil
(18.72)
Nil
Nil
(2.30)
Nil
(16.29)
3.76
(20.05)
16.29
Nil
` crore
Total
57.80
74.26
37.52
431.61
21.02
5,654.57
406.74
36.80
1,385.50
391.95
(415.25)
(3.95)
(270.65)
(10.53)
(5,643.24)
2,154.15
3,870.19
10.90
(2,154.15)
1,726.94
Goodwill arose in the acquisition of above subsidiaries because the cost of the combination included a control premium. In
addition, the consideration paid for the combination effectively included amounts in relation to the benefit of expected synergies,
revenue growth, future market development and assembled workforce of acquired subsidiaries. These benefits are not recognised
separately from goodwill because they do not meet the recognised criteria for identifiable intangible assets.
None of the goodwill arising on these acquisitions is expected to be deductible for tax purpose.
Consolidated Financials I 267
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Notes to the Consolidated Financial Statements
45
Business Combinations (Contd.)
45.4 Net cash outflow on acquisition of subsidiaries
Consideration paid in cash ...........................................................................................................................................
Less: Cash and cash equivalent balance acquired ................................................................................................
` crore
31st March, 2017
3,692.63
(57.80)
3,634.83
45.5
Impact of acquisitions on the results of the Group
From the date of acquisition, these companies have contributed ` 667.31 crore of revenue and ` 105.88 crore to the profit
before tax of the Group. If the combination had taken place at the beginning of the year, revenue from continuing operations
would have been ` 28,318.33 crore and loss before tax of the group would have been ` 351.46 crore.
46
Explanation of Transition to Ind AS effect of Ind AS adoption:
46.1 First-time adoption-mandatory exceptions, optional exemptions
a. Overall principle
The Group has prepared the opening balance sheet as per Ind AS as of 1st April, 2015 (the transition date) by recognising
all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not
permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS
in measurement of recognised assets and liabilities. However, this principle is subject to certain exceptions and certain
optional exemptions availed by the Group as detailed below.
b. Derecognition of financial assets and liabilities
The Group has applied the derecognition requirements of financial assets and financial liabilities prospectively for
transactions occurring on or after 1st April, 2015 (the transition date).
c. Classification of debt instruments
The Group has determined the classification of debt instruments in terms of whether they meet the amortised cost criteria
or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.
d. Deemed cost for PPE, investment property and intangible assets
The Group has elected to restate retrospectively generally all its property, plant and equipment and intangible assets as
per the Ind AS 16, except for certain freehold land, Plant & Equipment and Buildings which have been accounted at fair
value as deemed cost on transition date (as at 1st April, 2015).
e. Determining whether an arrangement contains a lease
The Group has applied Appendix C of Ind AS 17 “Determining whether an Arrangement contains a Lease” to determine
whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing
at that date.
f.
Cumulative translation differences on foreign operations
The Group has elected the option to reset the cumulative translation differences on foreign operations that exist as of the
transition date to zero.
g. Equity investments at FVTOCI
The Group has designated investment in equity shares of its non- current investments as FVTOCI on the basis of facts and
circumstances that existed at the transition date.
h. Business Combination
The Group has elected not to apply Ind AS 103 i.e. Business Combinations retrospectively to past business combinations
that occurred before the transition date of 1 April, 2015.
268 I Consolidated Financials
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
46
Explanation of Transition to Ind AS effect of Ind AS adoption (Contd.):
46.2 Reconciliation of Total Equity as at 31st March, 2016 and 1st April, 2015.
Notes
As at
31st March,
2016
` crore
As at
1st April,
2015
Equity under previous GAAP attributable to:
Shareholders of the Company ...........................................................................................................
Non-Controlling Interest $ ..................................................................................................................
(a)
14,613.92
2,082.08
14,042.05
1,988.92
Equity under previous GAAP .........................................................................................................
16,696.00
16,030.97
Restatement of a financial statements by a Joint venture due to waiver of interest on
loan in previous year given to other Joint venture ...................................................................
(161.20)
Nil
Equity as restated under previous GAAP .................................................................................
16,534.80
16,030.97
Arrangements accounted as finance lease and service concession arrangements ......
Decapitalisation of foreign exchange losses and borrowing cost, net of depreciation
Fair Value as deemed cost for certain property, plant and equipment .............................
Changes in fair value of derivative contracts ..............................................................................
Impact on account of Joint Venture accounted as held for sale ..........................................
(b)
(c)
(d)
(e)
(f)
Ind AS adjustments on share of profit of associates and joint ventures ...........................
(c), (e)(g) & (q)
Preference Shares held by Non-controlling shareholders now classified as debt .........
Increase in borrowing cost pursuant to application of effective interest rate ................
Derecognition of service line charges as income, now to be amortised over useful life
of asset ......................................................................................................................................................
Effect of measuring Fair value of investments ............................................................................
Others ........................................................................................................................................................
Tax on above adjustments .................................................................................................................
Dividend on equity shares and perpetual securities including tax thereon ..................
Other comprehensive income ..........................................................................................................
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
261.27
(933.22)
140.03
(702.60)
155.36
(712.96)
(274.40)
(25.68)
(180.45)
433.53
69.81
(466.74)
447.20
137.24
314.73
(766.45)
140.03
(714.89)
19.58
(621.97)
(274.40)
(35.99)
(168.09)
698.56
35.30
(429.99)
431.34
Nil
Equity under Ind AS ............................................................................................................................
14,883.19
14,658.73
Attributable to: .....................................................................................................................................
Shareholders of the Company ...........................................................................................................
Non-Controlling Interest ....................................................................................................................
$ Excluding non-controlling interest in subsidiaries now classified as joint ventures
13,133.38
1,749.81
12,970.34
1,688.39
Consolidated Financials I 269
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Consolidated Financial Statements
46
Explanation of Transition to Ind AS effect of Ind AS adoption (Contd.):
46.3 Reconciliation of Total Comprehensive Income for the year ended 31st March, 2016.
Profit after tax reported under previous GAAP $ ...................................................................................................
(a)
1,058.80
` crore
Notes
As at
31st March, 2016
Restatement of a financial statements by a Joint venture due to waiver of interest on loan in previous
year given to other Joint venture ......................................................................................................................................
Profit after tax as restated under previous GAAP ..................................................................................................
Arrangements accounted as finance lease and service concession arrangements .........................................
Decapitalisation of foreign exchange losses and borrowing cost, net of depreciation .................................
Changes in fair value of derivative contracts .................................................................................................................
Impact on account of Joint Venture accounted as held for sale .............................................................................
(b)
(c)
(e)
(f)
Ind AS adjustments on share of profit of associates and joint ventures ..............................................................
(c), (g) & (e)
Dividend on Preference Shares held by Non-controlling shareholders now classified as debt ..................
(h)
Transfer to contingencies reserve fund through Statement of Profit and Loss .................................................
Others ...........................................................................................................................................................................................
(i), (j) & (l)
Tax on above adjustments ....................................................................................................................................................
(m)
Profit after tax as per Ind AS .............................................................................................................................................
Other comprehensive expenses (net of tax) ..................................................................................................................
(k), (o) & (p)
Total Comprehensive Income reported under Ind AS ..........................................................................................
Attributable to:
Shareholders of the Company .............................................................................................................................................
Non-Controlling Interest .......................................................................................................................................................
$ Excluding non-controlling interest in subsidiaries now classified as joint ventures
46.4 Effect of Ind AS adoption on the Consolidated Statement of Cash Flow for the year ended 31st March, 2016.
For the year ended 31st March, 2016
Previous GAAP *
` crore
9,753.55
(4,476.66)
(5,567.96)
(291.07)
1,261.64
Effect of Transition
to Ind AS
[Refer Note (a)]
` crore
(2,338.43)
2,658.56
(615.49)
(295.36)
(448.30)
4.77
(4.77)
33.75
1,009.09
(20.87)
(769.30)
Net Cash flow from/(used in) operating activities ............................................
Net Cash flow from/(used in) investing activities .............................................
Net Cash flow used in financing activities ...........................................................
Net decrease in cash and cash equivalents ........................................................
Cash and Cash equivalents at the beginning of the period .........................
Cash and Cash Equivalents Acquired on Acquisition of Subsidiary and
Joint Ventures ................................................................................................................
Effects of exchange rate changes on the balance of cash held in foreign
currencies ........................................................................................................................
Cash and Cash equivalents at the end of the year ...........................................
270 I Consolidated Financials
(161.20)
897.60
(53.46)
(166.77)
12.29
135.78
12.71
(29.40)
(21.00)
32.46
(33.82)
786.39
(23.77)
762.62
638.79
123.83
Ind AS
` crore
7,415.12
(1,818.10)
(6,183.45)
(586.43)
813.34
Nil
12.88
239.79
The Tata Power Company Limited
46
Explanation of Transition to Ind AS effect of Ind AS adoption (Contd.):
Notes to the Consolidated Financial Statements
Analysis of cash and cash equivalents as at 31st March, 2016 and as at 1st April1, 2015 for the purposes of statement
of cash flow under Ind AS
Notes
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Cash and Cash equivalents for the purposes of statement of cash flows as per
previous GAAP .............................................................................................................................................
Bank Overdrafts .............................................................................................................................................
Cash and Cash equivalents of Joint Ventures entities proportionately considered under
previous GAAP................................................................................................................................................
Cash and Cash equivalents of Industrial Energy Ltd. proportionately considered under
previous GAAP................................................................................................................................................
Cash and Cash equivalents of Dugar Hydro Power Ltd. proportionately considered
under previous GAAP ..................................................................................................................................
Cash and Cash equivalents of Powerlinks Transmission Ltd. proportionately
considered under previous GAAP .........................................................................................................
(a)
(a)
(a)
(a)
Cash and Cash equivalents for the purpose of cash flow statement under Ind AS ....
1,009.09
(373.36)
1,261.64
(163.89)
(391.84)
(278.56)
(3.76)
(0.05)
(0.29)
239.79
(3.22)
(0.02)
(2.61)
813.34
46.5 Notes to reconciliations between Previous GAAP and Ind AS
(a) Under previous GAAP, Industrial Energy Ltd., Powerlinks Transmission Ltd., Dugar Hydro Power Ltd. and all Joint Ventures
were consolidated line by line. Under Ind AS these entities are consolidated based on equity method.
(b) Under previous GAAP, finance lease arrangement is recorded based on the legal form. Whereas under Ind AS arrangement
that do not take the legal form of a lease but fulfilment of which is dependent on the use of specific assets and which
convey the right to use the assets are accounted for as lease.
(c) Under the previous GAAP the Group had adopted para 46 of AS-11 and capitalised exchange gain/loss. Whereas in Ind AS
the Group has adopted Ind AS cost for most of its Property, Plant and Equipment, hence exchange gain/loss is recognised
in opening reserve and changes thereafter are recognised in statement of profit and loss or other comprehensive income,
as the case may be.
(d) Under Ind AS, the Group has elected to fair value its certain Freehold Land, Plant and Machinery and Building and use that
fair value in its opening Ind AS Balance Sheet as at 1 April, 2015 as deemed cost. Accordingly, difference between the fair
value and carrying amount reported under previous GAAP of certain freehold land and Plant and Machinery has been
credited to retained earnings.
(e) Under previous GAAP, the net mark-to market losses on derivative financial instruments, as at the Balance Sheet date, were
recognised in statement of profit and loss and the net gains, if any, were ignored. Under Ind AS, such derivative financial
instruments are to be recognised at fair value and the changes are recognised in statement of profit and loss.
(f ) Under Ind AS, one of the Joint Ventures has been classified as held for sale and hence the impact on Profit / Loss of the
Joint Ventures has been reversed.
(g) Under previous GAAP, the long term provisions were recognised at undiscounted amount in respect of certain Joint Ventures
entities. Under Ind AS, such provisions are recognised at discounted amount.
(h) Under previous GAAP, redeemable non-convertible preference shares issued by the Group were classified as equity. Under
Ind AS, such redeemable non-convertible preference shares have been classified as Financial Liabilities.
(i) Under previous GAAP, loan processing fees/ transaction cost were expensed when incurred, whereas, under Ind AS, it
is considered for calculating effective interest rate and the impact for the periods subsequent to the date of transition is
accounted in the statement of profit and loss.
(j) Under previous GAAP, service line charges were treated as income upfront upon installation of connections. However,
under Ind AS, since the customer does not get any identified asset or service upon payment of upfront service line charges,
service line charges are recognised as revenue over the useful life of asset provided to customer.
(k) Under previous GAAP, non-current investments were stated at cost less provision for diminution in value of investment, if
any. Under Ind AS, financial assets in equity instruments have been classified as Fair Value through Other Comprehensive
Income (FVTOCI) as an irrevocable election at the date of transition.
Consolidated Financials I 271
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
46
Explanation of Transition to Ind AS effect of Ind AS adoption (Contd.):
Notes to the Consolidated Financial Statements
(l) Under previous GAAP, current investments were stated at lower of cost and fair value. Under Ind AS these financial assets
have been classified as Fair Value through Profit and Loss (FVTPL) on the date of transition.
(m) The deferred tax adjustment include the impact of transition adjustments together with Ind AS mandate of using balance
sheet approach against profit and loss approach in the previous GAAP. On the date of transition, deferred tax impact on
transition provision has been accounted in the Reserves, and consequential impact in the statement of profit and loss for
the subsequent periods.
(n) Under previous GAAP, dividend payable is recognised as a liability in the period to which it relates. Under Ind AS, dividend
to shareholders are recognised when declared by the members in annual general meeting.
(o) Under Ind AS, Foreign Exchange Fluctuation are recongised in other comprehensive income, where as under previous
GAAP same was being accounted directly to reserve.
(p) Defined benefit plans - Under Ind AS, actuarial gains or losses arising on defined benefit plans are recognised in other
comprehensive income, whereas under previous GAAP same was being charged to the statement of profit and loss.
(q) Under previous GAAP, Investment in Tata Communication Ltd. were accounted at cost, under Ind AS, this investment is
considered as Associates and accounted for using the equity method.
47
Statement of Net Assets and Profit and Loss attributable to Owners and Non-Controlling Interest
Name of the Entity
Net Assets i.e. total assets
minus total libilities
Share of Profit or (loss)
Share in Other Comprehensive
Income
Share in Total Comprehensive
Income
As % of
consolidated
net assets
Amount
(` crore)
As % of
consolidated
profit
Amount
(` crore)
As % of
consolidated
Other compre-
hensive income
Amount
(` crore)
As % of
consolidated
Total compre-
hensive income
Amount
(` crore)
Tata Power Company Ltd. .......................
40.92
16,548.56
14.28
283.45
83.37
(121.20)
8.80
162.25
Indian Subsidiaries
Nelco Ltd. (Consolidated) 1......................
Chemical Terminal Trombay Ltd. ............
Af-Taab Investment Co. Ltd. ....................
Tata Power Trading Co. Ltd. .....................
Maithon Power Ltd. ..................................
Coastal Gujarat Power Ltd. ......................
Tata Power Delhi Distribution Ltd. .........
Tata Power Jamshedpur Distribution
Ltd. ..............................................................
Industrial Power Utility Ltd. ....................
0.05
0.15
0.76
0.39
4.65
10.11
6.65
(0.01)
-
21.87
62.22
306.50
157.92
1,880.50
4,086.69
2,687.44
(2.66)
*
Tata Power Renewable Energy Ltd. .......
11.32
4,575.22
0.80
0.03
-
0.13
(0.02)
-
-
-
-
323.51
11.32
0.02
54.23
(6.50)
0.05
0.05
0.05
0.05
Tata Power Solar Systems Ltd.
(Consolidated) 2 ........................................
NDPL Infra Ltd. ..........................................
Tata Power Green Energy Ltd. ................
Indo Rama Renewables Jath Ltd. ...........
Tata Ceramics Ltd. ....................................
Supa Windfarm Ltd...................................
Poolavadi Windfarm Ltd. .........................
Nivade Windfarm Ltd. ..............................
Vagarai Windfarm Ltd. .............................
Welspun Renewables Energy Pvt. Ltd.
(Consolidated) 3 ........................................
272 I Consolidated Financials
0.32
0.26
0.61
0.26
12.88
(42.80)
13.20
-
-
3.46
3.89
0.16
-
(0.08)
(0.03)
-
-
-
-
6.28
5.08
12.04
5.18
255.81
(849.74)
262.14
(0.06)
*
68.65
77.28
3.18
*
(1.56)
(0.59)
*
*
*
*
0.18
0.19
11.75
0.03
0.05
(0.89)
0.59
-
-
-
(0.26)
(0.27)
(17.09)
(0.05)
(0.07)
1.30
(0.86)
-
-
-
0.39
(0.57)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.33
0.26
(0.27)
0.28
13.90
(46.11)
14.20
-
-
3.73
4.17
0.17
-
(0.08)
(0.03)
-
-
-
-
6.02
4.81
(5.05)
5.13
255.74
(848.44)
261.28
(0.06)
*
68.65
76.71
3.18
*
(1.56)
(0.59)
*
*
*
*
4.49
1,813.33
5.86
116.29
(0.27)
0.39
6.34
116.68
The Tata Power Company Limited
Notes to the Consolidated Financial Statements
47
Statement of Net Assets and Profit and Loss attributable to Owners and Minority Interest (Contd.)
Name of the Entity
Net Assets i.e. total assets
minus total libilities
Share of Profit or (loss)
Share in Other
Comprehensive Income
Share in Total Comprehensive
Income
As % of
consolidated
net assets
Amount
(` crore)
As % of
consolidated
profit
Amount
(` crore)
As % of
consolidated
Other compre-
hensive income
Amount
(` crore)
As % of
consolidated
Total compre-
hensive income
Amount
(` crore)
Foreign Subsidiaries
Bhira Investments Ltd. .............................
Bhivpuri Investments Ltd. .......................
Khopoli Investments Ltd. ........................
Trust Energy Resources Pte. Ltd. ............
Energy Eastern Pte. Ltd. ...........................
PT Sumber Energi Andalan Tbk. .............
Tata Power International Pte. Ltd. ..........
Indian Associates
Nelito Systems Ltd. ...................................
Panatone Finvest Ltd. (Consolidated) 11
Yashmun Engineers Ltd. ..........................
Tata Communication Ltd. ........................
Tata Projects Ltd. ......................................
Foreign Associates
Dagachhu Hydro Power Corporation
Ltd. ..............................................................
Indian Jointly Controled Entities
Powerlinks Transmission Ltd. ..................
Industrial Energy Ltd. ...............................
Dugar Hydro Power Ltd. ..........................
Tubed Coal Mines Ltd. .............................
Mandakini Coal Company Ltd. ...............
Gamma Land Holding Ltd. ......................
Solace Land Holding Ltd. ........................
Beta Land Holdings Ltd. ..........................
Ginger Land Holdings Ltd .......................
Foreign Jointly Controled Entities
Cennergi Pty. Ltd. (Consolidated) 4 ........
PT Mitratama Perkasa (Consolidated) 5 .
PT Arutmin Indonesia ..............................
PT Kaltim Prima Coal ................................
Indocoal Resources (Cayman) Ltd. .........
PT Indocoal Kalsel Resources .................
PT Indocoal Kaltim Resources ................
Candice Investments Pte. Ltd. ................
PT Nusa Tambang Pratama .....................
PT Marvel Capital Indonesia ...................
PT Dwikarya Prima Abadi ........................
PT Kalimantan Prima Power
(Consolidated) 6 ........................................
PT Baramulti Sukessarana Tbk
(Consolidated) 8 ........................................
(4.02)
2.78
0.73
2.42
0.12
0.03
1.19
0.05
0.68
0.01
0.19
1.18
(1,626.44)
1,123.49
294.70
979.87
47.73
10.61
479.77
21.91
273.82
3.32
75.84
476.00
12.40
(0.09)
1.00
9.57
0.70
(0.03)
2.07
0.02
7.35
(0.03)
2.93
3.26
246.21
(1.82)
19.77
189.99
13.95
(0.64)
41.11
0.44
146.03
(0.52)
58.19
64.73
(21.98)
15.59
4.54
15.14
0.83
(0.24)
5.85
-
(71.57)
-
(28.01)
1.36
31.96
(22.67)
(6.60)
(22.01)
(1.20)
0.35
(8.50)
-
104.06
-
40.72
(1.98)
15.12
(1.33)
0.72
9.13
0.69
(0.02)
1.77
0.02
13.59
(0.03)
5.38
3.41
278.17
(24.49)
13.17
167.98
12.75
(0.29)
32.61
0.44
250.09
(0.52)
98.91
62.75
0.27
109.53
0.66
13.15
0.04
(0.06)
0.71
13.09
1.05
1.47
0.06
-
(0.14)
-
-
-
-
0.41
1.89
1.64
1.31
1.59
-
-
0.08
1.90
-
0.56
0.48
0.46
425.38
593.26
23.68
-
(57.19)
(0.01)
-
(0.03)
165.81
763.45
661.75
531.33
640.77
(0.04)
0.06
33.96
766.48
0.19
225.48
196.00
185.70
4.61
1.57
(0.93)
-
-
-
-
-
-
(2.79)
5.26
-
23.40
0.27
-
-
0.22
6.67
-
1.35
1.20
3.58
91.59
31.09
(18.45)
-
-
-
-
-
-
(55.38)
104.49
-
464.60
5.42
(0.03)
(0.04)
4.43
132.52
-
26.88
23.77
70.99
(0.05)
0.17
-
-
-
-
-
-
-
6.43
12.18
9.78
18.04
9.52
(0.01)
(0.01)
0.15
12.30
-
3.57
2.95
2.07
0.07
(0.24)
-
-
-
-
-
-
-
(9.35)
(17.71)
(14.22)
(26.23)
(13.84)
0.01
0.01
(0.22)
(17.89)
-
(5.19)
(4.29)
(3.01)
4.98
1.68
(1.00)
-
-
-
-
-
-
(3.52)
4.72
(0.77)
23.82
(0.46)
-
-
0.23
6.23
-
1.18
1.06
3.69
91.66
30.85
(18.45)
-
-
-
-
-
-
(64.73)
86.78
(14.22)
438.37
(8.42)
(0.02)
(0.03)
4.21
114.63
-
21.69
19.48
67.98
Consolidated Financials I 273
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Notes to the Consolidated Financial Statements
47
Statement of Net Assets and Profit and Loss attributable to Owners and Minority Interest (Contd.)
Name of the Entity
Net Assets i.e. total assets
minus total libilities
Share of Profit or (loss)
Share in Other
Comprehensive Income
Share in Total Comprehensive
Income
As % of
consolidated
net assets
Amount
(` crore)
As % of
consolidated
profit
Amount
(` crore)
As % of
consolidated
Other compre-
hensive income
Amount
(` crore)
As % of
consolidated
Total compre-
hensive income
Amount
(` crore)
Foreign Jointly Controled Entities (Contd.)
Adjaristsqali Netherlands BV
(Consolidated) 9 ........................................
Koromkheti Netherlands BV
(Consolidated) 10 .......................................
Itezhi Tezhi Power Corporation ..............
Indocoal KPC Resources (Cayman) Ltd. .
a) Adjustments arising out of
consolidation ......................................
b) Non-Controlling Interest
Indian Subsidiaries
Nelco Ltd. (Consolidated) 1 .....
Maithon Power Ltd. .................
Tata Power Delhi Distribution
Ltd. .............................................
NDPL Infra Ltd. .........................
Welspun Renewables Energy
Pvt. Ltd. - (Consolidated)3 .......
Foreign Subsidiaries
PT Sumber Energi Andalan
Tbk. ............................................
Foreign Jointly Controled Entities
PT Mitratama Perkasa
(Consolidated) 5 ........................
Total ..................................................
Consolidated Net Assets/Profit after
tax ............................................................
Notes:
0.70
281.93
(0.79)
(15.75)
4.55
(6.62)
(1.22)
(22.37)
(0.07)
0.56
-
100.00
(26.95)
225.31
0.18
40,427.02
(25,278.56)
(10.21)
(488.45)
(1,314.61)
(5.53)
(21.09)
(0.43)
(28.67)
(1,868.99)
13,279.47
(1.23)
5.53
-
100.00
(24.42)
109.84
(0.01)
1,985.56
(1,037.00)
(5.44)
(59.68)
(120.77)
(1.56)
(10.03)
0.03
(5.63)
(203.08)
745.48
(1.33)
2.76
(0.01)
100.00
1.94
(4.01)
0.01
(145.39)
12.67
(1.22)
5.75
-
100.00
0.13
0.02
0.44
-
-
-
-
0.59
(132.13)
(22.48)
105.83
-
1,840.17
(1,024.33)
(5.31)
(59.66)
(120.33)
(1.56)
(10.03)
0.03
(5.63)
(202.49)
613.35
1. Accounts of Tatanet Services Ltd. have been consolidated with Nelco Ltd.
2. Accounts of Chirasthayee Saurya Limited have been consolidated with Tata Power Solar Systems Ltd.
3. Accounts of all Subsidaries of Welspun Renewables Energy Pvt. Ltd. [Refer Note 2.3(v)] have been consolidated with Welspun Renewables Energy
Pvt. Ltd.
4. Accounts of Amakhala Emoyeni RE Project 1 (Pty) Ltd. and Tsitsikamma Community Wind Farm (Pty) Ltd. have been consolidated with Cennergi
Pty. Ltd.
The Group has sold its entire holding in OTP Geothermal Pte Ltd.
5. Accounts of PT Mitratama Usaha have been consolidated with PT Mitratama Perkasa.
6. Accounts of PT Citra Prima Buana, PT Guruh Agung and PT Citra Kusuma Perdana have been consolidated with PT Kalimantan Prima Power.
7.
8. Accounts of PT Antang Gunung Meratus have been consolidated with PT Baramulti Sukessarana Tbk.
9. Accounts of Adjaristsqali Georgia LLC have been consolidated with Adjaristsqali Netherlands BV.
10. Accounts of Koromkheti Georgia LLC have been consolidated with Koromkheti Netherlands BV.
11. Accounts of Tata Comunication Ltd. have been consolidated with Panatone Finvest Ltd.
* Denotes figures below ` 50,000/-
48.
Significant Event after the Reporting Period
There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed
in the relevant notes.
49.
Approval of Consolidated Financial Statements
The Consolidated Financial Statements were approved for issue by the Board of Directors on 19th May, 2017.
274 I Consolidated Financials
The Tata Power Company Limited
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2
Consolidated Financials I 275
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
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276 I Consolidated Financials
The Tata Power Company Limited
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Consolidated Financials I 277
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
STANDALONE FINANCIAL
STATEMENTS
278 I Standalone Financials
Hydro Power Plant, AGL, Georgia
The Tata Power Company Limited INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
THE TATA POWER COMPANY LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of THE TATA POWER COMPANY LIMITED (“the Company”),
which comprise the Balance Sheet as at 31st March, 2017, and the Statement of Profit and Loss (including other comprehensive income), the
Cash Flow Statement and the Statement of Changes in Equity for the year then ended, and a summary of the significant accounting policies
and other explanatory information.
Management’s Responsibility for the Standalone Ind AS Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with respect to
the preparation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance
including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of
adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
In conducting our audit, we have taken into account the provisions of the Act, the accounting and auditing standards and matters which are
required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing specified under Section
143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the
standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial
control relevant to the Company’s preparation of the standalone Ind AS financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of the accounting estimates made by the Company’s Directors, as well as evaluating the overall presentation of
the standalone Ind AS financial statements.
We believe that the audit evidence obtained by us, is sufficient and appropriate to provide a basis for our qualified audit opinion on the
standalone Ind AS financial statements.
Basis for Qualified Opinion
As described in Note 34 (b) and (c) to the standalone Ind AS financial statements, the fair value of unquoted equity shares of Tata Teleservices
Limited (TTSL) has not been determined as at 31st March, 2017. We are, therefore, unable to comment on whether the carrying value of:
a)
Investments in TTSL of ` 384.88 crore represents the fair value of such investments as at 31st March, 2017 and the consequent impact
thereof on Other Comprehensive Income, and
‘Other advance’, which represent TTSL shares receivable from DoCoMo under a contractual obligation of ` 138.55 crore as at 31st March,
2017 represents the fair value of such shares and the consequent impact thereof on the Statement of Profit and Loss.
b)
Qualified Opinion
In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matters
described in the Basis for Qualified Opinion paragraph above, the aforesaid standalone Ind AS financial statements give the information
required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in
India of the state of affairs of the Company as at 31st March, 2017, and its profit, total comprehensive income, its cash flows and the changes
in equity for the year ended on that date.
Emphasis of Matters
We draw attention to the following matters in the Notes to the standalone Ind AS financial statements:
(a) Note 37(d) to the standalone Ind AS financial statements which describes uncertainties relating to the outcome of the Appeal filed
before the Hon’ble Supreme Court. Pending outcome of the Appeal filed before the Hon’ble Supreme Court, no adjustment has been
made by the Company in respect of the standby charges estimated at ` 519 crore accounted for as revenue in earlier periods and its
consequential effects for the period upto 31st March, 2017. The impact of the same on the standalone Ind AS financial statements for
the year ended 31st March, 2017 cannot presently be determined pending the ultimate outcome of the matter. Since the Company is of
the view, supported by legal opinion, that the Tribunal’s Order can be successfully challenged, adjustment, if any, will be recorded by the
Company based on final outcome of the matter.
Standalone Financials I 279
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE (b) Note 37(f ) to the standalone Ind AS financial statements in respect of entry tax matter, estimated at ` 1,967.43 crore (including interest of
` 643.99 crore and penalty of ` 740.89 crore), has been decided by the Hon’ble Bombay High Court against the Company. The Company
is of the view, supported by legal opinions, that it has a strong case on merits and has appealed the matter before the Hon’ble Supreme
Court. Adjustments, if any, will be recorded by the Company based on final outcome of the matter.
(c) Note 34(a) to the standalone Ind AS financial statements which describes the basis on which Management has considered that no
impairment is necessary as at 31st March, 2017 for long term-investments of ` 11,136.15 crore in Coastal Gujarat Power Limited (CGPL),
and no provision is required in respect of guarantees of ` 2,781.69 crore given to CGPL’s lenders.
Our opinion is not modified in respect of these matters.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143(3) of the Act, based on our audit and referred to in the Other Matters paragraphs above we report, to the
extent applicable that:
a) We have sought and except for the matters described in the Basis for Qualified Opinion paragraph above, obtained all the information
and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) Except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, proper
c)
books of account as required by law have been kept by the Company.
The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and
Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) Except for the possible effects of the matters described in the Basis for Qualified Opinion paragraph above, in our opinion, the
aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the
Act.
The matters described in the Basis for Qualified Opinion paragraph and Emphasis of Matters paragraphs above, in our opinion, may
have an adverse effect on the functioning of the Company.
e)
f ) On the basis of the written representations received from the directors as on 31st March, 2017, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2017, from being appointed as a director in terms of Section 164(2)
of the Act.
g) The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the Basis for
Qualified Opinion paragraph above.
h) With respect to the adequacy of the internal financial controls over financial reporting of the Company, refer to our separate Report
in “Annexure A”. Our report expresses a qualified opinion on the operating effectiveness of the Company’s internal financial controls
over financial reporting.
i) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended, in our opinion and to the best of our information and according to the explanations given to us:
The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial
i.
statements.
The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable
losses, if any, on long-term contracts including derivative contracts.
ii.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by
the Company.
iv. The Company has provided requisite disclosures in the standalone Ind AS financial statements as regards its holding and
dealings in Specified Bank Notes as defined in the Notification S.O. 3407(E) dated the 8th November, 2016 of the Ministry of
Finance, during the period from 8th November 2016 to 30th December 2016. Based on audit procedures performed and the
representations provided to us by the management we report that the disclosures are in accordance with the books of account
maintained by the Company.
2. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”) issued by the Central Government in terms of Section 143(11)
of the Act, we give in “Annexure B” a statement on the matters specified in paragraphs 3 and 4 of the Order.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
UDAYAN SEN
Partner
(Membership No. 031220)
MUMBAI, 19th May, 2017
280 I Standalone Financials
The Tata Power Company Limited
ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT
(Referred to in paragraph 1(h)under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the
Companies Act, 2013 (“the Act”)
We have audited the internal financial controls over financial reporting of THE TATA POWER COMPANY LIMITED (“the Company”)
as of 31st March, 2017 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended
on that date.
Management’s Responsibility for Internal Financial Controls
The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control
over financial reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India (ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that
were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting
records and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Company’s internal financial controls over financial reporting based on our audit.
We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting
(the “Guidance Note”) issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under
Section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and
the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
about whether adequate internal financial controls over financial reporting was established and maintained and if such controls
operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due
to fraud or error.
We believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis for our qualified audit opinion
on the Company’s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company’s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of the company’s assets that could
have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or
improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also,
projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that
the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of
compliance with the policies or procedures may deteriorate.
Standalone Financials I 281
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Basis for Qualified opinion
According to the information and explanations given to us and based on our audit, and as described in note [34(b) and 34 (c)], in
the absence of a valuation report and appropriate evidence to determine the fair value as at 31st March, 2017 of investment in Tata
Teleservices Limited (TTSL), a material weakness has been identified relating to inadequate internal financial controls over financial
reporting in respect of the assessment of appropriateness of carrying amount of these investments.
Qualified Opinion
In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects,
maintained adequate internal financial controls over financial reporting as of 31st March, 2017, based on “the internal control over
financial reporting criteria established by the Company considering the essential components of internal control stated in the
Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India”, and except for the possible effects of the material weakness described in Basis for Qualified Opinion paragraph above on the
achievement of the objectives of the control criteria, the Company’s internal financial controls over financial reporting were operating
effectively as of 31st March, 2017.
We have considered the material weakness identified and reported above in determining the nature, timing and extent of audit
tests applied in our audit of the standalone Ind AS financial statements of the Company for the year ended 31st March, 2017 and the
material weakness has affected our opinion on the said standalone Ind AS financial statements of the Company and we have issued a
qualified opinion on the standalone Ind AS financial statements of the Company.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
UDAYAN SEN
Partner
(Membership No. 031220)
MUMBAI, 19th May, 2017
282 I Standalone Financials
The Tata Power Company Limited (Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)
ANNEXURE B TO THE INDEPENDENT AUDITORS’ REPORT
(i)
In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a program of verification of fixed assets to cover all the items in a phased manner over a period of three
years which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. Pursuant to
the program, certain fixed assets were physically verified by the Management during the year. According to the information
and explanation given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and the records examined by us and based on the examination
of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising
all the immovable properties of land and buildings which are freehold and property, plant and equipment, are held in the
name of the Company as at the balance sheet date, except the following:
Particulars of the land and
Building
Cost (as at the balance sheet
date) ` crore
Remarks
Land at Vikhroli
Land at Bhira
Land at Bhivpuri
Flats at Andheri
Land at Haldia
Land at Bhanwaj
Land at Sawle
Land at Sion Salt Pans
Land at Bhandup
Land at Mahul
Land at Wadhavli & Marawli
Land at Mahul
Land at Kambe
Land at Vadol - Ambernath
Land at Malusar
* Denotes figures below ` 50,000/-
25.94 Agreement is pending finalization on account of
dispute
1.44 Agreement is pending finalization
0.77 Agreement is pending finalization
0.24 Agreement is pending finalization
5.41 Agreement is pending finalization
* Agreement is pending finalization
* Agreement is pending finalization
* Agreement is pending finalization
0.02 Agreement is pending finalization
0.07 Agreement is pending finalization
0.07 Agreement is pending finalization
* Agreement is pending finalization
* Agreement is pending finalization
* Agreement is pending finalization
* Agreement is pending finalization
(ii)
As explained to us, the inventories were physically verified during the year by the Management at reasonable intervals and no
material discrepancies were noticed on physical verification.
(iii) According to the information and explanations given to us, the Company has granted loans, secured or unsecured, to companies,
firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies
Act, 2013, in respect of which:
(a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Company’s
interest.
(b) The schedule of repayment of principal and payment of interest has been stipulated and repayments or receipts of principal
amounts and interest have been regular as per stipulations.
(c) There is no overdue amount remaining outstanding as at the balance sheet date.
(iv)
In our opinion and according to the information and explanations given to us, the Company has complied with the provisions
of Sections 185 and 186 of the Companies Act, 2013 in respect of grant of loans, making investments and providing guarantees
and securities, as applicable.
Standalone Financials I 283
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
(v)
(vi)
According to the information and explanations given to us, the Company has not accepted any deposit during the year. In
respect of unclaimed deposits, the Company has complied with the provisions of Sections 73 to 76 or any other relevant
provisions of the Companies Act. According to the information and explanations given to us, no Order has been passed by the
Company Law Board or the National Company Law Tribunal or the Reserve Bank of India or any Court or any other Tribunal.
The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act,
2013 for Generation, transmission, distribution and supply of electricity regulated by the relevant regulatory body or authority
under the Electricity Act, 2003 (36 of 2003), other than for captive generation (as defined under the Electricity Rules 2005) and
machinery and mechanical appliances used in defence, space and atomic energy sectors. We have broadly reviewed the cost
records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended prescribed
by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima
facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or complete
(vii) According to the information and explanations given to us, in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues, including provident fund, employees’
state insurance, income-tax, sales tax, service tax, customs duty, excise duty, value added tax, cess and other material
statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of provident fund, employees’ state insurance, income-tax, sales tax,
wealth tax, service tax, customs duty, excise duty, value added tax, cess and other material statutory dues in arrears as at
31st March, 2017 for a period of more than six months from the date they became payable.
(c) Details of dues of income-tax, sales tax, wealth tax, service tax, customs duty, excise duty and value added tax which have
not been deposited as on 31st March, 2017 on account of disputes are given below:
Name of the statute
Customs Laws
Maharashtra Tax on the Entry of
Goods into Local Areas Act, 2002
Maharashtra Value Added Tax Act,
2002
Central Excise Laws
Nature of
the dues
Customs
Duty
Entry Tax
Amount
(` crore)
Period to which the
amount relates
37.60 1993-94 to 1999-00 and
2012-13
1,967.43 2005-06 to 2012-13
Forum where dispute is
pending
Appellate Authority - upto
Commissioner level
Supreme Court
VAT
17.91 2008-09
Sales Tax Appellate Tribunal
The Water ( Prevention & Control
of Pollution ) Cess Act 1977
Cess
1.13 2009-10
Excise Duty
0.90 1992-93 to 1995-96
Appellate Authority - upto
Tribunal Level
Chairman MPCB
(viii)
In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment
of loans or borrowings to financial institutions, banks, government and dues to debenture holders.
(ix)
(x)
(xi)
In our opinion and according to the information and explanations given to us, money raised by way of initial public offer/
further public offer (including debt instruments) and the term loans have been applied by the Company during the year for the
purposes for which they were raised.
To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no
material fraud on the Company by its officers or employees has been noticed or reported during the year.
In our opinion and according to the information and explanations given to us, the Company has paid / provided managerial
remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to
the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the CARO 2016 Order is not applicable.
(xiii)
In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177
and 188 of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related
party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
284 I Standalone Financials
The Tata Power Company Limited (xiv) During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly
convertible debentures and hence reporting under clause (xiv) of CARO 2016 is not applicable to the Company.
(xv)
In our opinion and according to the information and explanations given to us, during the year, the Company has not entered into
any non-cash transactions with its directors or directors of its holding, subsidiary or associate company or persons connected
with them and hence provisions of Section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
(Firm’s Registration No. 117366W/W-100018)
UDAYAN SEN
Partner
(Membership No. 031220)
MUMBAI, 19th May, 2017
Standalone Financials I 285
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE Balance Sheet as at 31st March, 2017
Notes
Page
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
ASSETS
Property, Plant and Equipment ................................................. 4
Non-current Assets
(a)
(b) Capital Work-in-Progress .............................................................
(c)
(d)
(e)
Intangible Assets ............................................................................ 5
Intangible Assets under Development...................................
Financial Assets
(i)
Investments ............................................................................ 6
(ii) Trade Receivables ................................................................ 7
(iii) Loans......................................................................................... 8
(iv) Finance Lease Receivables ................................................ 9
(v) Other Financial Assets ........................................................ 10
(f ) Non-current Tax Assets (Net) ...................................................... 11
(g) Other Non-current Assets ........................................................... 12
Total Non-current Assets ....................................................................
Current Assets
(a)
(b)
Inventories ........................................................................................ 13
Financial Assets
(i)
(ii) Trade Receivables ................................................................ 7
(iii) Unbilled Revenue .................................................................
(iv) Cash and cash Equivalents ............................................... 15
(v) Bank Balances other than (iv) above ............................. 16
(vi) Loans......................................................................................... 8
(vii) Finance Lease Receivables ................................................ 9
(viii) Other Financial Assets ........................................................ 10
(c) Other Current Assets ..................................................................... 12
Investments ............................................................................ 14
Assets Classified as Held For Sale ....................................................... 17
Total Current Assets ..............................................................................
Total Assets before Regulatory Deferral Account ..................
Regulatory Deferral Account - Assets .......................................... 18
TOTAL ASSETS ....................................................................................................
EQUITY AND LIABILITIES
Equity
Equity Share Capital ...................................................................... 19 a.
(a)
(b) Unsecured Perpetual Securities ................................................ 19 b.
(c) Other Equity ..................................................................................... 20
Total Equity ...............................................................................................
LIABILITIES
Borrowings ............................................................................. 21
Non-current Liabilities
Financial Liabilities
(a)
(i)
(ii) Trade Payables.......................................................................
(iii) Other Financial Liabilities .................................................. 22
(b) Provisions .......................................................................................... 23
(c) Deferred Tax Liabilities (Net) ...................................................... 24
(d) Other Non-current Liabilities ..................................................... 25
Total Non-current Liabilities .............................................................
Current Liabilities
(a)
Financial Liabilities
(i)
(ii) Trade Payables.......................................................................
(iii) Other Financial Liabilities .................................................. 22
(b) Provisions ......................................................................................... 23
(c) Current Tax Liabilities (Net) ......................................................... 27
(d) Other Current Liabilities ............................................................... 25
Total Current Liabilities .......................................................................
Total Liabilities before Regulatory Deferral Account ...........
Regulatory Deferral Account - Liability ....................................... 18
Borrowings ............................................................................. 26
302
303
304
307
308
308
309
310
311
312
312
307
313
313
308
308
309
311
314
315
316
317
318
320
323
324
325
326
326
323
324
326
326
315
TOTAL EQUITY AND LIABILITIES ...............................................................
See accompanying notes to the Financial Statements
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
Mumbai, 19th May, 2017.
286 I Standalone Financials
8,130.21
666.18
189.87
254.68
22,369.27
185.76
22.82
573.47
820.10
Nil
1,105.15
34,317.51
671.09
89.34
1,234.26
560.98
141.60
14.47
Nil
39.16
376.71
273.83
3,401.44
235.72
3,637.16
37,954.67
1,914.00
39,868.67
270.50
1,500.00
14,778.06
16,548.56
8,847.86
35.57
31.98
170.17
1,472.09
187.34
10,745.01
2,391.98
1,344.68
6,632.32
52.33
18.26
1,479.53
11,919.10
22,664.11
656.00
39,868.67
8,251.53
485.72
140.54
209.70
14,031.71
185.76
3,644.45
617.63
1,006.26
Nil
1,143.96
29,717.26
689.05
0.22
1,057.23
299.96
33.83
12.06
106.00
48.80
212.06
345.06
2,804.27
Nil
2,804.27
32,521.53
2,093.09
34,614.62
270.48
1,500.00
15,079.98
16,850.46
8,983.62
33.12
33.59
151.57
1,543.94
176.85
10,922.69
1,507.09
1,263.26
1,866.79
73.59
29.74
1,420.62
6,161.09
17,083.78
680.38
34,614.62
8,088.37
472.44
141.99
76.20
13,412.41
185.76
2,867.28
661.09
1,338.47
49.52
1,165.48
28,459.01
669.18
42.02
1,559.38
226.75
265.85
13.42
39.86
42.51
271.83
296.56
3,427.36
Nil
3,427.36
31,886.37
1,841.86
33,728.23
270.48
1,500.00
14,458.16
16,228.64
8,777.67
29.92
32.33
149.90
1,439.96
136.21
10,565.99
1,741.05
1,304.66
2,227.79
68.93
Nil
1,572.81
6,915.24
17,481.23
18.36
33,728.23
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
The Tata Power Company Limited Statement of Profit and Loss for the year ended 31st March, 2017
Notes
Page
I
II
III
IV
Revenue from Operations .................................................................................................... 28
Other Income ......................................................................................................................... 29
Total Income
Expenses
.........................................................................................................................
Cost of Power Purchased ............................................................................................
Cost of Fuel ......................................................................................................................
Transmission Charges ..................................................................................................
Cost of Components Consumed .............................................................................
Employee Benefits Expense ..................................................................................... 30
Finance Costs ................................................................................................................. 31
Depreciation and Amortisation Expenses .......................................................... 4, 5
Other Expenses ............................................................................................................. 32
V
Total Expenses .......................................................................................................................
Profit Before Rate Regulated Activities, Exceptional Items and Tax ............
Add/(Less): Regulatory income/(expense) (net) .................................................
Add/(Less): Regulatory income/(expense) (net) in respect of earlier years
327
327
328
329
303
329
VI
Profit Before Exceptional Items and Tax ...................................................................
Less: Exceptional Items
Loss Towards Contractual Obligation ......................................................... 34(c)
332
VII Profit Before Tax ...................................................................................................................
VIII Tax Expense
Current Tax ...................................................................................................................... 33
Deferred Tax ................................................................................................................... 24
331
325
IX
X
XI
XII
Profit For The Year ................................................................................................................
Other Comprehensive Income
A
(i)
Items that will not be reclassified to profit or loss
(a) Equity Instruments through Other Comprehensive Income ...
(b) Gain on sale of Investment classified at FVTOCI ..........................
(c) Remeasurement of the Defined Benefit Plans .............................. 39(2.3)
(ii) Tax relating to items that will not be reclassified to profit or loss
B
(i)
(ii)
(a) Current Tax .................................................................................................
(b) Deferred Tax ............................................................................................... 24
Items that will be reclassified to profit or loss .........................................
Income tax relating to items that will be reclassified to profit or loss
Other Comprehensive Income/(Expense) for the year ..............................
Total Comprehensive Income for the year (IX + X) .....................................
Earnings Per Equity Share (Face Value ` 1/- Per Share)
339
325
Basic (`) ............................................................................................................................ 45
Diluted (`) ....................................................................................................................... 45
358
358
See accompanying notes to the Financial Statements
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
Mumbai, 19th May, 2017.
For the year ended
31st March, 2017
` crore
7,218.06
913.83
8,131.89
For the year ended
31st March, 2016
` crore
8,696.94
905.27
9,602.21
466.52
2,342.83
221.30
349.98
660.80
1,295.68
634.21
1,066.99
7,038.31
1,093.58
(13.00)
77.00
64.00
1,157.58
651.45
506.13
290.92
(68.24)
222.68
283.45
(113.97)
0.10
(11.40)
Nil
4.07
Nil
Nil
(121.20)
162.25
0.63
0.63
785.06
2,550.42
262.96
397.66
648.47
1,146.12
604.46
1,091.36
7,486.51
2,115.70
(438.00)
56.59
(381.41)
1,734.29
Nil
1,734.29
279.20
100.10
379.30
1,354.99
(246.36)
Nil
(7.76)
Nil
(3.88)
Nil
Nil
(258.00)
1,096.99
4.59
4.59
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
Standalone Financials I 287
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Statement of Cash Flows for the year ended 31st March, 2017
A.
B.
Cash Flow from Operating Activities
Profit before tax ............................................................................................................................
Adjustments to reconcile profit before tax to net cash flows
Depreciation and Amortisation Expense .............................................................................
Interest Income .............................................................................................................................
Delayed Payment Charges ........................................................................................................
Dividend Income ..........................................................................................................................
Finance Cost ...................................................................................................................................
(Gain)/Loss on disposal of Property, Plant and Equipment (net) ...............................
Gain on Sale of Current Investments (Including fair value change) (Net) ..............
Gain on Sale of Non-Current Investments (Including fair value change) (Net) .....
Amortisation of Premium paid on Leasehold Land .........................................................
Impairment of Financial Assets - payment towards contractual obligations .........
Guarantee Commission - From Subsidairies & Jointly Controlled Entities ..............
Amortisation of Service Line Contributions .......................................................................
Transfer to Statutory reserve ....................................................................................................
Allowance for Doubtful Debts and Advances (Net) .........................................................
Impairment of Non-current Assets held for sale ...............................................................
Provision for Warranties .............................................................................................................
Impairment of Non-current Investments in Joint Ventures .........................................
Impairment of payment towards lease obligation ..........................................................
Realised Exchange Loss on Investing/Financing Activity (Net) ..................................
Unrealised Exchange Loss/(Gain) (Net) ................................................................................
Working Capital Adjustments
Adjustments for (increase)/decrease in operating assets:
Inventories ......................................................................................................................................
Trade Receivables .........................................................................................................................
Finance Lease Receivables ........................................................................................................
Other Current Assets ...................................................................................................................
Other Non-current Assets .........................................................................................................
Unbilled Revenue .........................................................................................................................
Other Financial Assets - Current ..............................................................................................
Other Financial Assets - Non Current ....................................................................................
Regulatory Account - Debit balances- Assets ....................................................................
Movement in operating asset ..................................................................................................
Adjustments for increase/(decrease) in operating liabilities:
Trade Payables ...............................................................................................................................
Other Current Liabilities .............................................................................................................
Other Non-current Liabilities ...................................................................................................
Short-term Provisions .................................................................................................................
Long-term Provisions ..................................................................................................................
Other Financial Liabilities - Current .......................................................................................
Other Financial Liabilities - Non Current ..............................................................................
Regulatory Account - Liability .................................................................................................
Movement in operating liability .............................................................................................
Cash flow from/(used in) operations .....................................................................................
Income tax paid ............................................................................................................................
Net Cash Flows from/(used) in Operating Activities .................................................
Cash Flow from Investing Activities
Capital expenditure on fixed assets, including capital advances ...............................
Proceeds from Sale of Fixed Assets ........................................................................................
Purchase of Long-term Investments
Subsidiaries ...............................................................................................................................
Joint ventures ...........................................................................................................................
Other investments ..................................................................................................................
Proceeds from Sale of Non-Current Investments
Associates...................................................................................................................................
Other investments ..................................................................................................................
Carried over......
288 I Standalone Financials
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
506.13
1,734.29
634.21
(269.42)
(6.78)
(649.98)
1,295.68
0.23
(41.36)
Nil
12.03
651.45
(24.88)
(11.04)
14.00
19.34
34.00
2.48
18.08
31.00
10.10
70.48
17.96
(196.33)
53.80
71.23
9.16
(261.02)
(109.28)
144.48
179.09
83.87
44.91
(0.98)
(35.05)
18.51
59.07
(1.61)
(24.38)
1,789.62
2,295.75
(90.91)
2,204.84
144.34
2,349.18
(243.14)
2,106.04
(882.85)
9.47
(4,833.73)
(0.15)
(10.26)
Nil
0.73
(3,610.75)
604.46
(552.28)
(7.80)
(328.06)
1,146.12
(27.99)
(9.29)
(10.57)
14.52
Nil
(42.75)
(10.26)
21.00
65.50
Nil
3.81
28.37
Nil
25.52
34.68
(19.87)
499.32
37.17
(48.50)
29.94
(73.21)
(67.43)
345.47
(251.23)
(38.20)
(173.19)
37.93
(8.27)
3.03
(537.51)
1.26
662.02
954.98
2,689.27
451.66
3,140.93
(52.93)
3,088.00
(140.75)
2,947.25
(1,009.27)
64.99
(193.34)
(308.81)
(18.71)
10.87
Nil
1,492.98
The Tata Power Company Limited Statement of Cash Flows for the year ended 31st March, 2017 (Contd.)
Brought forward…
Purchase of Current Investments ...........................................................................................
Proceeds from Sale of Current Investments .......................................................................
Interest Received
Subsidiaries ...............................................................................................................................
Others ..........................................................................................................................................
Delayed payment charges received ......................................................................................
Loans given to Subsidiaries ......................................................................................................
Loans given to Joint Ventures .................................................................................................
Loans repaid by Subsidiaries ....................................................................................................
Loans repaid by Joint Ventures ..............................................................................................
Dividend Received
Subsidiaries ...............................................................................................................................
Joint Ventures ...........................................................................................................................
Associates...................................................................................................................................
Others ...............................................................................................................................................
Guarantee Commission Received ..........................................................................................
Amount paid under Contractual Obligation .....................................................................
Inter Corporate Deposits redeemed .....................................................................................
Bank Balance not considered as Cash and Cash Equivalents .......................................
Net Cash Flow from/(used) in Investing Activities .....................................................
Cash flow from Financing Activities
Proceeds from issue of Equity shares ....................................................................................
Issue Expenses ...............................................................................................................................
Increase in Capital/Service Line Contributions .................................................................
Distribution on Unsecured Perpetual Securities ...............................................................
Interest and Other Borrowing Costs ......................................................................................
Proceeds from Long-term Borrowings .................................................................................
Repayment of Long-term Borrowings ..................................................................................
Proceeds from Short-term Borrowings ................................................................................
Repayment of Short-term Borrowings .................................................................................
Dividends Paid ...............................................................................................................................
Dividend Distribution Tax ..........................................................................................................
Net Cash Flow from/(used) in Financing Activities ....................................................
Net Increase/(Decrease) in Cash and Cash Equivalents ...........................................
Cash and Cash Equivalents as at 1st April (Opening Balance) .............................
Cash and Cash Equivalents as at 31st March (Closing Balance) ..........................
Notes:
1.
Cash and Cash Equivalents include:
C.
For the year ended
31st March, 2017
` crore
(3,610.75)
(24,390.10)
24,431.46
For the year ended
31st March, 2016
` crore
1,492.98
(9,008.08)
9,059.39
43.75
49.47
6.78
(187.15)
Nil
356.62
13.25
427.00
114.50
12.43
3.82
24.88
(790.00)
24.00
(2.41)
(5,578.49)
0.87
Nil
14.46
(171.24)
(1,190.42)
5,615.00
(1,220.97)
7,926.79
(6,894.65)
(350.42)
(0.59)
3,728.83
256.38
(115.10)
141.28
82.50
152.09
7.80
(1,177.26)
(77.96)
317.85
39.86
279.30
93.07
12.24
18.45
26.17
Nil
Nil
1.36
(1,627.49)
0.02
(1.69)
12.98
(170.85)
(1,163.40)
921.24
(517.18)
8,205.14
(8,623.64)
(351.73)
(11.60)
(1,700.71)
(380.95)
265.85
(115.10)
As at
31st March, 2017
` crore
0.04
As at
31st March, 2016
` crore
0.01
43.56
98.00
(0.32)
141.28
32.60
1.22
(148.93)
(115.10)
(a) Cash on Hand ...............................................................................................................................................
Balances with Banks
In Current Accounts ...................................................................................................................................
(b)
(c)
In Deposit Accounts with original maturity of less than 3 months ..........................................
(d) Bank Overdraft.............................................................................................................................................
2. During the year, Loan and Interest accrued thereon given to Coastal Gujarat Power Limited and Tata Power Renewable Energy Limited
amounting to ` 3,855.89 crore (Previous period- ` Nil) has been converted into Investment in Perpetual Securities and Investment in Equity.
The said conversion has been considered as non cash item for the purposes of cash flow.
Purchase of investments in Subsidiaries, Joint Venture and Associates includes Advance paid towards equity.
3.
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
Mumbai, 19th May, 2017.
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
Standalone Financials I 289
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
A. Equity Share Capital
Statement of Changes in Equity
Balance as at 1st April, 2015 ....................................................................................................................
Issued during the year ...................................................................................................................................
Balance as at 31st March, 2016 ..............................................................................................................
Issued during the year ...................................................................................................................................
Balance as at 31st March, 2017 ..............................................................................................................
B. Unsecured Perpetual Securities
Balance as at 1st April, 2015 ....................................................................................................................
Issued during the year ...................................................................................................................................
Balance as at 31st March, 2016 ..............................................................................................................
Issued during the year ...................................................................................................................................
Balance as at 31st March, 2017 ..............................................................................................................
No. of Shares
270,46,25,254
4,144
270,46,29,398
144,112
270,47,73,510
No. of Securities
15,000
Nil
15,000
Nil
15,000
C. Other Equity
Description
General
Reserve
Securities
Premium
Reserve
Debenture
Redemption
Reserve
Capital
Redemption
Reserve
Capital
Reserve
Retained
Earnings
Reserves and Surplus
Item of Other
Comprehensive
Income
Equity Instrument
through Other
Comprehensive
Income
` crore
Amount
270.48
*
270.48
0.02
270.50
` crore
Amount
1,500.00
Nil
1,500.00
Nil
1,500.00
` crore
Total
5,634.11
Nil
3,789.08
Nil
Nil
Nil
Nil
Nil
77.16
Nil
Balance as at 1st April, 2015 .......................
Profit for the year ................................................
Other Comprehensive Income / (Expense)
for the year (Net of Tax) ....................................
Total Comprehensive Income ....................
Issue of Equity Shares during the year .......
Dividend paid (including tax on dividend)
Transfer to General Reserve ............................
Transfer to Debenture Redemption Reserve .
Distribution on Unsecured Prepetual
Securities (Net of Tax) .........................................
Balance as at 31st March, 2016 .................
Balance as at 1st April, 2016 .......................
Profit for the year ................................................
Other Comprehensive Income / Expense
for the year (Net of Tax) ....................................
Total Comprehensive Income ....................
Issue of Equity Shares during the year .......
Transfer to Retained Earnings on Sale of
Shares .....................................................................
Dividend paid (including tax on dividend)
Transfer to Debenture Redemption Reserve .
Distribution on Unsecured Perpetual
Securities (Net of Tax) ........................................
Balance as at 31st March, 2017
* Denotes figures below ` 50,000/-.
See accompanying notes to the Financial Statements
Nil
3,866.24
3,866.24
Nil
Nil
3,866.24
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5,634.13
5,634.13
Nil
Nil
Nil
0.02
Nil
Nil
Nil
Nil
Nil
0.85
Nil
Nil
Nil
Nil
5,634.98
434.66
Nil
Nil
Nil
Nil
Nil
Nil
110.58
Nil
545.24
545.24
Nil
Nil
Nil
Nil
Nil
Nil
455.66
Nil
1,000.90
1.60
Nil
61.66
Nil
4,423.94
1,354.99
113.11
Nil
14,458.16
1,354.99
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1.60
1.60
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(5.20)
1,349.79
Nil
(363.59)
(77.16)
(110.58)
Nil
61.66
61.66
Nil
(111.60)
5,110.80
5,110.80
283.45
Nil
Nil
Nil
Nil
Nil
Nil
(7.45)
276.00
Nil
(0.04)
(352.58)
(455.66)
(252.80)
(252.80)
Nil
Nil
Nil
Nil
(258.00)
1,096.99
0.02
(363.59)
Nil
Nil
Nil
(139.69)
(139.69)
Nil
(111.60)
15,079.98
15,079.98
283.45
(113.75)
(113.75)
Nil
0.04
Nil
Nil
(121.20)
162.25
0.85
Nil
(352.58)
Nil
Nil
1.60
Nil
61.66
(112.44)
4,466.08
Nil
(112.44)
(253.40) 14,778.06
In terms of our report attached.
For DELOITTE HASKINS & SELLS LLP
Chartered Accountants
UDAYAN SEN
Partner
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2017.
Mumbai, 19th May, 2017.
For and on behalf of the Board,
N. CHANDRASEKARAN
Chairman
ANIL SARDANA
CEO & Managing Director
290 I Standalone Financials
The Tata Power Company Limited
1.
Background:
Notes to the Financial Statements
The Tata Power Company Limited (the ’Company’) is a public limited company domiciled and incorporated in India under
the Indian Companies Act, 1913. The registered office of the Company is located at Bombay House, 24 Homi Mody Street,
Mumbai 400001, India.
The Company pioneered the generation of electricity in India more than a century ago. Prior to 1st April, 2000 the Tata Electric
Companies comprised of the following three Companies -
• The Tata Hydro-Electric Power Supply Company Limited, established in 1910 (Tata Hydro).
• The Andhra Valley Power Supply Company Limited, established in 1916 (Andhra Valley).
• The Tata Power Company Limited, established in 1919 (Tata Power).
With effect from 1st April, 2000, Andhra Valley and Tata Hydro merged into Tata Power to result in one large unified entity. The
Company has an installed generation capacity of 2,954 MW in India and a presence in all the segments of the power sector viz.
Fuel and Logistics, Generation (thermal, hydro, solar and wind), Transmission and Distribution.
2.
2.1
Significant Accounting Policies:
Statement of compliance
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as notified under the
Companies (Indian Accounting Standards) Rules, 2015 read with section 133 of the Companies Act, 2013.
Upto the year ended 31st March, 2016, the Company prepared its financial statements in accordance with the requirements of
previous GAAP, which included Standards notified under the Companies (Accounting Standards) Rules, 2006. These financial
statements are the first financial statements of the Company under Ind AS. The date of transition to Ind AS is 1st April, 2015.
Refer Note 47 for details of first-time adoption exemptions availed by the Company.
2.2
Basis of preparation and presentation
These financial statements have been prepared on the historical cost basis except for certain financial instruments that are
measured at fair values at the end of each reporting period, as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date, regardless of whether that price is directly observable or estimated using
another valuation technique.
2.3
Use of Estimates
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS
requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and
liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of
income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimates are revised and future periods are affected.
Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, is in respect of, fair value of unquoted securities and
impairment of investments, valuation of current and deferred tax expense, valuation of defined benefit obligations, regulatory
deferral accounts and provisions and contingent liabilities.
Impairment of investments:
The Company reviews its carrying value of investments carried at cost or amortised cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is
accounted for.
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98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Valuation of deferred tax assets:
Notes to the Financial Statements
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same
has been explained under Note 2.11.3.
Regulatory deferral account:
The Company determines surplus/deficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for the
year in respect of its regulated operations based on the principles laid down under the Tariff Regulations on the basis of Tariff
Orders issued. In respect of such surplus/deficit, appropriate adjustments as stipulated under the regulations are made during
the year. Further, any adjustments that may arise on annual performance review by regulators under the Tariff Regulations is
made after the completion of such review.
2.4
Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction
rather than through continuing use. This condition is regarded as met only when the asset is available for immediate sale in
its present condition subject only to terms that are usual and customary for sale of such asset and its sale is highly probable.
Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within
one year from the date of classification.
Non-current assets classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.
2.5
Revenue recognition
Revenue is recognised to the extent that it is probable that economic benefit will flow to the Company and that the revenue
can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced
for estimated rebates and other similar allowances.
2.5.1 Sale of Power
Revenue from Generation, Transmission and Distribution of power is recognised on an accrual basis and includes unbilled
revenue accrued upto the end of the accounting year.
The Company determines surplus/deficit (i.e. excess/shortfall of/in aggregate gain over Return on Equity entitlement) for
the year in respect of its regulated operations based on the principles laid down under the relevant Tariff Regulations/Tariff
Orders as notified by respective State Regulatory Commissions. In respect of such surplus/deficit, appropriate adjustments as
stipulated under the regulations are made during the year. Further, any adjustments that may arise on annual performance
review by respective State Regulatory Commissions under the aforesaid Tariff Regulations/Tariff Orders is made after the
completion of such review.
2.5.2 Delayed payment charges
Delayed payment charges and interest on delayed payments are recognised, on grounds of prudence when recovered.
2.5.3 Sale of Goods
Revenue from the sale of goods is recognised when the goods are delivered and titles have passed, at which time all the
following conditions are satisfied:
•
•
•
•
•
the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the economic benefits associated with the transaction will flow to the Company; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
2.5.4 Rendering of Services
Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The revenue
from time and material contracts is recognised at the contractual rates as labour hours and direct expenses are incurred.
The Company’s policy for recognition of revenue from construction contracts is described in note 2.5.6 below.
292 I Standalone Financials
The Tata Power Company Limited
2.5.5 Dividend and Interest income
Notes to the Financial Statements
Dividend income from investments is recognised when the shareholder’s right to receive payment has been established.
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal
outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts
through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.
2.5.6 Construction Contracts
When the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to
the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of
contract costs incurred for work performed to date relative to the estimated total contract costs, except where this would not
be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the
extent that the amount can be measured reliably and its receipt is considered probable.
The outcome of a construction contract is considered as estimated reliably when (a) all critical approvals necessary for
commencement of the project have been obtained; (b) the stage of completion of the project reaches a reasonable level of
development i.e. the expenditure incurred on construction and development costs is at least 10% of the construction and
development costs or ` 5 crore spend whichever is higher.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of
contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which
they are incurred.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense
immediately.
When contract costs incurred to date plus recognised profits less recognised losses exceed progress billings, the surplus
is shown as amounts due from customers for contract work. Amounts received before the related work is performed are
included in the balance sheet, as a liability, as advances received from customer. Amounts billed for work performed but not
yet paid by the customer are included in the balance sheet under trade receivables.
2.6
Leasing arrangement
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
2.6.1 The Company as lessor
Amounts due from lessees under finance leases are recognised as receivables at the amount of the Company’s net investment
in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the
Company’s net investment outstanding in respect of the leases.
Rental income from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected general inflation to compensate for the Company’s expected
inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Initial direct costs incurred
in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a
straight-line basis over the lease term.
2.6.2 The Company as lessee
Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the
lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in
the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are
directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company’s general policy on
borrowing costs (see note 2.8 below). Contingent rentals are recognised as expenses in the periods in which they are incurred.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of the relevant lease. Where
the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor’s expected
inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising
under operating leases are recognised as an expense in the period in which they are incurred.
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98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.7
Foreign Currencies
The functional currency of the Company is Indian rupee (`).
Notes to the Financial Statements
Income and expenses in foreign currencies are recorded at exchange rates prevailing on the date of the transaction. Foreign
currency denominated monetary assets and liabilities are translated at the exchange rate prevailing on the balance sheet date
and exchange gains and losses arising on settlement and restatement are recognised in the statement of profit and loss.
Non-monetary assets and liabilities that are measured in terms of historical cost in foreign currencies are not retranslated.
Exchange differences on monetary items are recognised in profit or loss in the period in which they arise except for exchange
differences on foreign currency borrowings relating to assets under construction for future productive use, which are
included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency
borrowings.
2.8
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that
necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets,
until such time as the assets are substantially ready for their intended use or sale.
Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is
deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are recognised in statement of profit and loss in the period in which they are incurred.
2.9
Government Grant
Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions
attaching to them and that the grant will be received.
Government grants relating to income are determined and recognised in the profit and loss over the period necessary to
match them with the cost that they are intended to compensate and presented within other income.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as
deferred income and are credited to profit and loss on a straight line basis over the expected life of the related assets and
presented within other operating income.
The benefit of a Government loan at a below market rate of interest is treated as a Government grant, measured as the
difference between proceeds received and the fair value of loan based on prevailing market interest rates.
2.10 Employee Benefits
2.10.1 Defined contribution plans
Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered
service entitling them to the contributions.
2.10.2 Defined benefits plans
For defined benefit retirement plans, the cost of providing benefits is determined using the projected unit credit method, with
actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains
and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is
reflected immediately in the balance sheet with a charge or credit recognised in other comprehensive income in the period in
which they occur. Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings
and is not reclassified to profit or loss. Past service cost is recognised in profit or loss in the period of a plan amendment. Net
interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset.
The retirement benefit obligation recognised in the balance sheet represents the actual deficit or surplus in the Company’s
defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits
available in the form of refunds from the plans or reductions in future contributions to the plans.
A liability for a termination benefit is recognised at the earlier of when the entity can no longer withdraw the offer of the
termination benefit and when the entity recognises any related restructuring costs.
294 I Standalone Financials
The Tata Power Company Limited
2.10.3 Short-term and other long-term employee benefits
Notes to the Financial Statements
A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the
period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that
service.
Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits
expected to be paid in exchange for the related service.
Liabilities recognised in respect of other long-term employee benefits are measured at the present value of the estimated
future cash outflows expected to be made by the Company in respect of services provided by employees up to the reporting
date.
2.11
Income Taxes
2.11.1 Current and deferred tax for the year
Income tax expense comprises of current tax expense and the net change in the deferred tax asset or liability during the
year. Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other
comprehensive income or directly in equity respectively.
2.11.2 Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the
statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that
are never taxable or deductible.
The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the
reporting period.
2.11.3 Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary
differences to the extent that it is probable that taxable profits will be available against which those deductible temporary
differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises
from the initial recognition of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting
profit.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period.
For operations carried out under tax holiday period (80IA benefits of Income Tax Act, 1961), deferred tax assets or liabilities, if
any, have been established for the tax consequences of those temporary differences between the carrying values of assets and
liabilities and their respective tax bases that reverse after the tax holiday ends.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the
relevant entity intends to settle its current tax assets and liabilities on a net basis.
Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give
future economic benefits in the form of availability of set off against future income tax liability. Accordingly, MAT is recognised
as deferred tax asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic
benefit associated with the asset will be realised.
Standalone Financials I 295
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.12 Property plant and equipment
Notes to the Financial Statements
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any.
Cost includes purchase price and any directly attributable cost of bringing the asset to its working condition for its intended
use and for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy. Depreciation
commences when the assets are ready for their intended use.
Freehold land and Assets held for sale are not depreciated.
Regulatory Assets:
Depreciation on Property, plant and equipment in respect of electricity business of the Company covered under Part B of
Schedule II of the Companies Act, 2013, has been provided on the straight line method at the rates using the methodology as
notified by the respective regulators.
Non Regulatory Assets:
Depreciation is recognised so as to write off the cost of assets (other than freehold land and properties under construction)
less their residual values over their useful lives, using the straight-line method.
The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the
effect of any changes in estimate accounted for on a prospective basis.
Estimated useful lives of the Regulatory and Non Regulatory assets are as follows:
Type of asset
Hydraulic Works
Buildings-Plant
Buildings-Others
Coal Jetty
Railway Sidings, Roads, Crossings, etc.
Plant and Equipment
Transmission Lines, Cable Network, etc.
Furniture and Fixtures
Office Equipment
Motor Vehicles, Launches, Barges, etc.
Helicopters
Useful lives
35 years
25 to 35 years
25 to 35 years
25 years
25 to 35 years
25 to 35 years
25 to 35 years
5 to 15 years
5 years
5 years
35 years
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected
to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property,
plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is
recognised in profit or loss.
2.13
Intangible assets
2.13.1 Intangible assets acquired separately
Intangible assets that are acquired separately are carried at cost less accumulated amortisation and accumulated impairment
losses. Amortisation is recognised on a straight-line basis over their estimated useful lives. The estimated useful life and
amortisation method are reviewed at the end of each reporting period, with the effect of any changes in estimate being
accounted for on a prospective basis.
296 I Standalone Financials
The Tata Power Company Limited
2.13.2 Internally generated intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Notes to the Financial Statements
the intention to complete the intangible asset and use or sell it;
the technical feasibility of completing the intangible asset so that it will be available for use or sale;
An internally-generated intangible asset arising from development (or from the development phase of an internal project) is
recognised if, and only if, all of the following have been demonstrated:
•
•
•
• how the intangible asset will generate probable future economic benefits;
•
the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset; and
the ability to use or sell the intangible asset;
•
the ability to measure reliably the expenditure attributable to the intangible asset during its development.
The amount initially recognised for internally-generated intangible assets is the sum of the expenditure incurred from the
date when the intangible asset first meets the recognition criteria listed above. Where no internally-generated intangible asset
can be recognised, development expenditure is recognised in profit or loss in the period in which it is incurred.
Subsequent to initial recognition, internally-generated intangible assets are reported at cost less accumulated amortisation
and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.
2.13.3 Derecognition of Intangible assets
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains
or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and
the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised.
2.13.4 Useful lives of intangible assets
Estimated useful lives of the intangible assets are as follows:
Type of asset
Technical Know-How and Prototypes
Licences
Computer Software
Useful lives
5 years
5 years
5 years
2.14
Impairment of tangible and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash
generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate
assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest Company of cash-
generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been
adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised
immediately in profit or loss.
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Standalone Financials I 297
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.15
Inventories
Notes to the Financial Statements
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on weighted average
basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs
necessary to make the sale.
2.16 Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision
is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those
cash flows (when the effect of the time value of money is material).
2.16.1 Onerous Contracts
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is
considered to exist where the Company has a contract under which the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be received from the contract.
2.16.2 Warranties
Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sale
of the relevant products, at the Company’s best estimate of the expenditure required to settle the Company’s obligation.
2.17 Financial Instruments
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of
the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the
acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate,
on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair
value through profit or loss are recognised immediately in statement of profit and loss.
2.18 Financial Assets
All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by
regulation or convention in the market place.
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on
the classification of the financial assets
2.18.1 Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose
objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset
give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.
2.18.2 Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cashflows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cashflows that are solely payments of principal and interest on the
principal amount outstanding.
298 I Standalone Financials
The Tata Power Company Limited
Notes to the Financial Statements
On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the
subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other
than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising
from changes in fair value recognised in other comprehensive income and accumulated in the ‘Reserve for equity instruments
through other comprehensive income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the
investments.
2.18.3 Financial assets at fair value through profit or loss (FVTPL)
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to
present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not
held for trading.
Other financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of
financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.
2.18.4 Investment in Subsidiaries, Jointly Controlled Entities and Associates
Investment in subsidiaries, jointly controlled entities and associates are measured at cost as per Ind AS 27 - Separate Financial
Statements.
2.18.5 Impairment of financial assets (other than at fair value)
The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired.
Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime
expected losses for all trade receivables that do not constitute a financing transaction. For all other financial assets, expected
credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time
expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
2.19 Financial liabilities and equity instruments
2.19.1 Classification as debt or equity
Debt and equity instruments issued by a Company are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
2.19.2 Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company’s own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in statement of profit and loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
2.19.3 Financial liabilities
All financial liabilities are subsequently measured at amortised cost using the effective interest method.
2.19.4 Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payments when due in accordance with the terms of a debt instrument.
Financial guarantee contracts issued by a Company are initially measured at their fair values and, if not designated as at FVTPL,
are subsequently measured at the higher of:
•
•
the amount of loss allowance determined in accordance with impairment requirements of Ind AS 109; and
the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance with
the principles of Ind AS 18.
Standalone Financials I 299
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
2.20 Derivative financial instruments
Notes to the Financial Statements
The Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks,
including foreign exchange forward contracts and cross currency swaps.
Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently
remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss
immediately.
2.21 Cash and cash equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash
that are subject to an insignificant risk of change in value and having original maturities of three months or less from the
date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for
withdrawal and usage.
2.22 Cash Flow Statement
Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of
a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities
of the Company are segregated.
2.23 Earnings per equity share
Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by
the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed
by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares
considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares. The dilutive potential equity shares are adjusted for the
proceeds receivable had the equity shares been actually issued at fair value (i.e.the average market value of the outstanding
equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later
date. Dilutive potential equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for
any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the
Board of Directors.
2.24 Standards issued but not yet effective
In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules,
2017, notifying amendments to Ind AS 7, ‘Statement of cash flows’ and Ind AS 102, ‘Share-based payment’. The amendments
are applicable to the Company from 1st April, 2017.
Amendment to Ind AS 7:
The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate
changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes,
suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising
from financing activities, to meet the disclosure requirement.
The Company is evaluating the requirements of the amendment and its impact on its cash flows, which are not expected to
be material.
Amendment to Ind AS 102:
The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-
settled awards and awards that include a net settlement feature in respect of withholding taxes.
300 I Standalone Financials
The Tata Power Company Limited
Notes to the Financial Statements
It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled
awards. Market-based performance conditions and non-vesting conditions are reflected in the ‘fair values’, but non-market
performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest.
Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified
with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such
from the date of the modification. Further, the amendment requires the award that include a net settlement feature in respect
of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was
part of an equity settlement.
The Company does not have any scheme of share based payments and hence the requirements of the amendment will not
have any impact on the financial statements.
3.
Critical accounting estimates and judgements
In the application of the Company’s accounting policies, the directors of the Company are required to make judgements,
estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other
sources. The estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision
and future periods if the revision affects both current and future periods. Detailed information about each of these estimates
and judgements is included in relevant notes together with information about the basis of calculation for each affected line
item in the financial statements.
The areas involving critical estimates are:
Estimation of current tax and deferred tax expense - Note 24 and 33
Estimated fair value of unquoted securities and impairement of investments - Note 34
Estimation of defined benefit obligation - Note 39
Regulatory deferral accounts - Note 18
Estimation of values of contingent liabilities - Note 37
Estimates and judgement are continually evaluated. They are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under
the circumstances.
Standalone Financials I 301
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
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R
302 I Standalone Financials
The Tata Power Company Limited
5.
Intangible Assets
Notes to the Financial Statements
Computer
software $
Copyrights, patents,
other intellectual
property rights,
services and operating
rights #
Licences and
franchises $
` crore
Total
Cost
Balance as at 1st April, 2016 ..................................
Additions ..........................................................................
Balance as at 31st March, 2017 ............................
Accumulated amortisation and impairment
Balance as at 1st April, 2016 ..................................
Amortisation expense .................................................
Balance as at 31st March, 2017 ............................
Net carrying amount
As at 31st March, 2017 .............................................
As at 31st March, 2016 .............................................
147.98
64.28
212.26
49.03
34.39
83.42
128.84
98.95
68.82
35.34
104.16
27.23
15.90
43.13
61.03
41.59
0.26
Nil
0.26
0.26
Nil
0.26
Nil
Nil
217.06
99.62
316.68
76.52
50.29
126.81
189.87
140.54
` crore
Computer
software $
Copyrights, patents,
other intellectual
property rights,
services and operating
rights #
Licences and
franchises $
Total
Cost
Balance as at 1st April, 2015 .................................
Additions ..........................................................................
Balance as at 31st March, 2016 ...........................
Accumulated amortisation and impairment
Balance as at 1st April, 2015 .................................
Amortisation expense .................................................
Balance as at 31st March, 2016 ...........................
Net carrying amount
As at 31st March, 2016 ............................................
As at 1st April, 2015 ..................................................
Notes:
124.32
23.66
147.98
21.32
27.71
49.03
98.95
103.00
# Internally generated intangible assets.
$ Other than internally generated intangible assets.
Depreciation/Amortisation:
55.08
13.74
68.82
16.09
11.14
27.23
41.59
38.99
0.26
Nil
0.26
0.26
Nil
0.26
Nil
Nil
179.66
37.40
217.06
37.67
38.85
76.52
140.54
141.99
Depreciation on Tangible Assets ........................................................................................
Add: Amortisation on Intangible Assets ...........................................................................
Total ..............................................................................................................................................
583.92
50.29
634.21
565.61
38.85
604.46
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Standalone Financials I 303
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
6.
Non-current Investments
Notes to the Financial Statements
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Face Value
(in ` unless
stated
otherwise)
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
` crore
` crore
` crore
I
Investments carried at cost less impairment, if any
(a) Investment in Subsidiaries
1,10,99,630
1,10,99,630
1,10,99,630
10
11.07
11.07
11.07
(i)
Investment in Equity Shares fully Paid-up
(unless otherwise stated)
Quoted
NELCO Ltd. ..............................................................................
Unquoted
Chemical Terminal Trombay Ltd. ....................................
Tata Power Trading Co. Ltd. ..............................................
1,86,200
1,60,00,000
1,86,200
1,60,00,000
1,86,200
1,60,00,000
Maithon Power Ltd. ............................................................. 111,65,99,120 111,65,99,120 111,65,99,120
Coastal Gujarat Power Ltd.# ............................................. 608,34,20,000 603,04,20,000 598,05,70,000
10,00,000
Bhira Investments Ltd. .......................................................
10,00,000
7,46,250
Bhivpuri Investments Ltd. .................................................
7,46,250
4,70,07,350
Khopoli Investments Ltd. ..................................................
4,70,07,350
12,47,63,344 12,47,63,344
Trust Energy Resources Pte. Ltd......................................
28,15,20,000 28,15,20,000
Tata Power Delhi Distribution Ltd. .................................
50,000
Tata Power Jamshedpur Distribution Ltd. ..................
1,10,000
Industrial Power Utility Ltd. ..............................................
91,10,000
Tata Ceramics Ltd. (Refer Note 6 below) ......................
50,61,07,715 48,76,07,715
Tata Power Renewable Energy Ltd.# .............................
67,77,567
2,29,77,567
Tata Power Solar Systems Ltd. .........................................
1,79,50,000
1,79,50,000
Tata Power International Pte. Ltd. ..................................
10,73,000
10,73,000
Af-Taab Investment Co. Ltd. .............................................
10,00,000
7,46,250
4,70,07,350
12,91,53,344
28,15,20,000
80,50,000
1,10,000
91,10,000
56,61,07,715
2,29,77,567
6,77,30,650
10,73,000
80,50,000
1,10,000
91,10,000
100
10
10
10
USD 1
Euro 1
USD 1
USD 1
10
10
10
2
10
100
USD 1
100
37.81
37.09
1,116.83
6,676.26
4.10
4.08
255.20
607.95
200.93
8.05**
0.11
9.11**
575.05
322.98
577.55
68.68
10,501.78
17.16
10,484.62
37.81
37.00
1,116.83
6,443.85
4.10
4.08
255.20
575.02
200.93
8.05**
0.11
9.11**
506.11
322.98
264.35
68.68
9,854.21
17.16
9,837.05
37.81
37.00
1,116.83
6,047.90
4.10
4.08
255.20
575.02
200.93
0.05
0.11
9.11 **
487.61
148.31
264.35
68.68
9,257.09
9.11
9,247.98
** Less: Impairment in the value of Investments ...........
(ii) Investment in Perpetual Securities
Unquoted
Tata Power Renewable Energy Ltd. (Refer Note 5
below)
Coastal Gujarat Power Ltd. (Refer Note 5 below) .....
(b) Investment in Associates
(i)
Investment in Equity Shares fully Paid-up
(unless otherwise stated)
Quoted
Tata Communications Ltd. ................................................
Unquoted
Yashmun Engineers Ltd. ....................................................
The Associated Building Co. Ltd. ....................................
Tata Projects Ltd. ..................................................................
Rujuvalika Investments Ltd. .............................................
Dagachhu Hydro Power Corporation Ltd. ..................
Panatone Finvest Ltd. .........................................................
(c) Investment in Joint Ventures
(I)
Investment in Equity Shares fully Paid-up
(unless otherwise stated)
Unquoted
Tubed Coal Mines Ltd.# .....................................................
Itezhi Tezhi Power Corporation .......................................
Carried over......
304 I Standalone Financials
N.A.
N.A.
Nil
Nil
Nil
Nil
3,895.00
4,459.89
18,850.58
Nil
Nil
9,848.12
Nil
Nil
9,259.05
1,34,22,037
1,34,22,037
1,34,22,037
10
343.81
343.81
343.81
19,200
1,400
9,67,500
Nil
10,74,320
59,08,82,000
19,200
1,400
9,67,500
Nil
10,74,320
19,200
1,400
9,67,500
1,83,334
10,74,320
59,08,82,000 59,08,82,000
100
900
100
10
Nu 1,000
10
0.01
0.13
85.01
Nil
107.43
600.00
792.58
1,136.39
0.01
0.13
85.01
Nil
107.43
600.00
792.58
1,136.39
0.01
0.13
85.01
0.30
107.43
600.00
792.88
1,136.69
1,81,97,800
4,52,500
1,81,17,800
4,52,500
1,78,36,000
Nil
10
ZMW 1
18.20**
275.74
20,280.91
18.12**
275.74
11,278.37
17.84 **
Nil
10,413.58
The Tata Power Company Limited
6.
Non-current Investments (Contd.)
Notes to the Financial Statements
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
Face Value
(in ` unless
stated
otherwise)
Brought forward......
Mandakini Coal Company Ltd.# .....................................
Powerlinks Transmission Ltd.# ........................................
Industrial Energy Ltd.# .......................................................
LTH Milcom Private Limited .............................................
Dugar Hydro Power Ltd. ....................................................
3,93,00,000
23,86,80,000
49,28,40,000
66,660
4,32,50,002
3,93,00,000
3,93,00,000
23,86,80,000 23,86,80,000
49,28,40,000 46,53,12,000
Nil
3,80,00,002
Nil
4,32,50,002
10
10
10
10
10
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
` crore
20,280.91
39.30**
238.68
492.84
0.07
43.25**
1,108.08
75.50
1,032.58
21,019.55
` crore
11,278.37
39.30**
238.68
492.84
Nil
43.25
1,107.93
57.42
1,050.51
12,035.02
` crore
10,413.58
39.30 **
238.68
465.31
Nil
38.00
799.13
37.10
762.03
11,157.77
Nil
6,48,59,930
6,48,59,930
USD 1
Nil
258.27
243.65
** Less: Impairment in the value of Investments ....................
II
Investments carried at Fair Value through Statement of
Profit and Loss
Investments in Subsidiaries
Investment in Preference Shares fully Paid-up
(unless otherwise stated)
Unquoted
Tata Power International Pte. Ltd. ..................................
III
Investments carried at Fair Value through Other
Comprehensive Income
Investment in Equity Shares fully Paid-up (unless
otherwise stated)
Quoted
HDFC Bank Ltd. .....................................................................
IDBI Bank Ltd. ........................................................................
Voltas Ltd. ...............................................................................
Tata Consultancy Services Ltd. ........................................
Tata Teleservices (Maharashtra) Ltd. .............................
7,500
1,42,720
2,33,420
452
Nil
7,500
1,42,720
2,33,420
452
7,500
1,42,720
2,33,420
452
13,72,63,174 13,72,63,174
Unquoted
Tata Services Ltd...................................................................
Indian Energy Exchange Ltd. ...........................................
Tata Industries Ltd. ..............................................................
Tata Sons Ltd. ........................................................................
Haldia Petrochemicals Ltd. ...............................................
Tata Teleservices Ltd.# ........................................................
1,112
Nil
58,28,126
6,673
2,24,99,999
32,83,97,823
1,112
1,112
12,50,000
12,50,000
58,28,126
58,28,126
6,673
6,673
2,24,99,999
2,24,99,999
32,83,97,823 32,83,97,823
IV
Investments carried at Amortised Cost
(a) Investment in Subsidiaries
(i)
Investment in Preference Shares fully Paid-up
(unless otherwise stated)
Unquoted
Tata Power Delhi Distribution Ltd. .................................
Tata Power Solar Systems Ltd. .........................................
(b) Statutory Investments
(i) Contingencies Reserve Fund Investments
Government Securities (Unquoted)
7.88% GOI (2030) .................................................................
6.79% GOI (2029) .................................................................
8.28% GOI (2027) .................................................................
Carried over......
2,55,00,000
Nil
2,55,00,000
Nil
2,55,00,000
45,00,000
10,00,000
10,00,000
11,30,000
10,00,000
Nil
11,30,000
Nil
Nil
11,30,000
2
10
1
1
10
1,000
10
100
1,000
10
10
100
100
100
100
100
1.08
1.07
9.62
0.11
Nil*
11.88
Nil
Nil*
102.69
241.95
56.48
384.88
786.00
797.88
0.80
1.00
6.49
0.12
90.59
99.00
Nil
98.04
102.69
241.95
56.48
509.34
1,008.50
1,107.50
0.77
1.01
6.53
0.12
107.75
116.18
Nil
70.07
102.69
241.95
56.48
766.48
1,237.67
1,353.85
255.00
Nil
255.00
255.00
Nil
255.00
255.00
45.00
300.00
10.00
9.59
11.30
22,103.32
10.00
Nil
11.30
13,677.09
Nil
Nil
11.30
13,066.57
Standalone Financials I 305
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
6.
Non-current Investments (Contd.)
Notes to the Financial Statements
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Quantity
Quantity
Quantity
Face Value
(in ` unless
stated
otherwise)
9,65,000
7,50,000
9,00,000
66,000
7,03,000
16,01,300
10,00,000
Nil
Nil
Nil
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
Nil
Nil
Nil
9,65,000
7,50,000
9,00,000
Nil
7,03,000
16,01,300
10,00,000
8,48,700
7,36,000
Nil
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
15,00,000
33,49,300
25,00,000
9,65,000
7,50,000
Nil
Nil
7,03,000
16,01,300
10,00,000
8,48,700
7,36,000
19,000
61,45,000
20,00,000
31,00,000
29,75,000
19,40,000
2,48,700
42,00,000
15,00,000
33,49,300
25,00,000
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
` crore
22,103.32
9.65
7.50
9.00
0.67
7.03
16.01
10.00
Nil
Nil
Nil
90.75
61.45
20.00
31.00
29.75
19.40
2.49
42.00
Nil
Nil
Nil
206.09
` crore
13,677.09
9.65
7.50
9.00
Nil
7.03
16.01
10.00
8.49
7.36
Nil
96.34
61.45
20.00
31.00
29.75
19.40
2.49
42.00
15.00
33.49
25.00
279.58
` crore
13,066.57
9.65
7.50
Nil
Nil
7.03
16.01
10.00
8.49
7.36
0.19
77.53
61.45
20.00
31.00
29.75
19.40
2.49
42.00
15.00
33.49
25.00
279.58
Nil
Nil
3,000
100
Nil
296.84
551.84
22,369.27
Nil
375.92
630.92
14,031.71
0.03
357.14
657.14
13,412.41
Brought forward......
8.24% GOI (2027) .................................................................
8.33% GOI (2026) .................................................................
7.16% GOI (2023) .................................................................
6.84% GOI (2022) .................................................................
8.19% GOI (2020) .................................................................
6.35% GOI (2020) .................................................................
7.83% GOI (2018) .................................................................
7.99% GOI (2017) .................................................................
7.49% GOI (2017) .................................................................
7.59% GOI (2016) .................................................................
(ii) Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
8.28% GOI (2027) .................................................................
8.20% GOI (2025) .................................................................
7.35% GOI (2024) .................................................................
8.15% GOI (2022) .................................................................
8.19% GOI (2020) .................................................................
6.35% GOI (2020) .................................................................
6.05% GOI (2019) .................................................................
6.25% GOI (2018) .................................................................
7.99% GOI (2017) .................................................................
7.49% GOI (2017) .................................................................
(iii) Others
Government Securities (Unquoted)
8.07% GOI (2017) .................................................................
Total
* Re-classified as Asset Held For Sale (Refer Note 17)
** Impairment in value of Investments
# Refer Note 37(c)(ii)
Notes:
759.07
1. Aggregate Market Value of Quoted Investments ............................................................................................
471.06
2. Aggregate Carrying Value of Quoted Investments .........................................................................................
12,987.56
3. Aggregate Carrying Value of Unquoted Investments ....................................................................................
46.21
4. Aggregate amount of impairment in value of Investments ........................................................................
5. The Company has invested in unsecured subordinated perpetual securities issued by Tata Power Renewable Energy Limited and Coastal
Gujarat Power Limited, its subsidiary companies. These securities are redeemable at the issuer’s option and carry non-cumulative
interest coupon at the rate of dividend paid on the issuer’s ordinary shares. The interest can be deferred if the issuer does not pay
any dividend on its ordinary shares for the financial year. The issuer has classified this instrument as equity under Ind AS -32 Financial
Instruments Presentation. Accordingly, the Company has classified this investment as Equity Instrument and has accounted at cost as
per Ind AS -27 Separate Financial Statements.
1,068.43
366.76
22,095.17
92.66
705.37
453.88
13,652.41
74.58
6 The Company, along with its subsidiary, has 30.68% shareholding in Tata Ceramics Limited (TCL). Further, TCL has issued Redeemable
Cumulative Convertible Preference Shares which have been fully subscribed by the Company’s subsidiaries. As the dividend on the said
Preference Shares has remained unpaid for more than two years, the preference shareholders have assumed voting rights along with
the equity shareholders. The aggregate voting power (together with voting power on preference shares) with the Company along with
its subsidiaries is at 57.07%.
The Company has assessed its control over TCL based on whether the Company has practical ability to direct TCL’s relevant activities
unilaterally. After the assessment, the Company concluded that it has sufficiently dominant voting interest to direct TCL’s relevant
activities and therefore the Company has control over TCL. Accordingly, investment in the said Company has been considered as
investment in subsidiary.
306 I Standalone Financials
The Tata Power Company Limited
7.
Trade Receivables
(Unsecured unless otherwise stated)
Notes to the Financial Statements
Non-current Trade Receivables
Trade Receivables from Others ....................................................
Total .......................................................................................................
Current Trade Receivables
Considered good ...............................................................................
Considered doubtful ........................................................................
Less: Allowance for Doubtful Trade Receivables.....................
Total .......................................................................................................
Note:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
185.76
185.76
185.76
185.76
185.76
185.76
As at
31st March, 2017
` crore
1,234.26
43.70
1,277.96
43.70
1,234.26
As at
31st March, 2016
` crore
1,057.23
24.40
1,081.63
24.40
1,057.23
As at
1st April, 2015
` crore
1,559.38
22.54
1,581.92
22.54
1,559.38
Company holds security deposits of ` 174.57 crore (31st March, 2016 - ` 170.29 crore, 1st April, 2015 - ` 152.21 crore) in respect of Electricity
Receivables.
7.1
Trade Receivables
The average credit period for the Company’s receivables from its generation, transmission, distribution and project management services is in
the range of 15 to 60 days. No interest is charged on trade receivables till the due date. Thereafter, interest is charged at an average of 1.25%
per month for retail electricity consumers on the outstanding balance.
Of the trade receivables balance as at 31st March, 2017, ` 902.66 crore is due from Brihanmumbai Electric Supply & Transport Undertaking,
Reliance Infrastructure Ltd., Maharashtra State Electricity Transmission Company Limited, Tata Steel Limited and Ministry of Defence which
represents Company’s large customers. There is no other customer which individually represents more than 5% of the total balance of trade
receivables.
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision
matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward looking information. The expected
credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision
matrix at the end of the reporting period is as follows:
Ageing
Within the credit period
1 - 90 days past due
91 - 182 days past due
More than 182 days past due
Age of receivables
Expected Credit loss (%)
0.04%
0.27%
0.04%
5.76%
Within the credit period ...................................................................................
1 - 90 days past due ...........................................................................................
91 - 182 days past due ......................................................................................
More than 182 days past due .........................................................................
Movement in the allowance for doubtful trade receivables
Balance at the beginning of the year ......................................
Add: Expected credit loss allowance on trade receivables
calculated at lifetime expected credit losses for the year.........
Add: Specific allwance on trade receivables for the year $ .................
Balance at the end of the year ......................................................
As at
31st March, 2017
` crore
771.48
121.00
126.39
444.85
As at
31st March, 2016
` crore
753.46
64.86
34.66
414.41
As at
1st April, 2015
` crore
766.98
481.12
157.56
362.02
As at
31st March, 2017
` crore
24.40
As at
31st March, 2016
` crore
22.54
As at
1st April, 2015
` crore
23.42
1.87
17.43
43.70
1.86
Nil
24.40
(0.88)
Nil
22.54
$ As at 31st March, 2017, certain Trade Receivables have been unable to make payments for outstanding amounts of ` 17.43 crore as the
amounts are disputed. Consequent to termination of the contract with the customers, the management believes it is prudent to provide
for the specific allowance.
The concentration of credit risk is very limited due to the fact that the large customers are mainly government entities and remaining customer
base is large and widely dispersed and secured with adequate security deposit.
Standalone Financials I 307
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
8.
Loans
(Unsecured unless otherwise stated)
Notes to the Financial Statements
Non-current
Loans to Related Parties
Considered good ................................................................
Considered doubtful .........................................................
Less: Allowance for Doubtful Loans .............................
Other Loans
Loans to Employees ..........................................................
Total ...............................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
15.48
55.46
70.94
55.46
15.48
7.34
22.82
3,636.85
55.43
3,692.28
55.43
3,636.85
7.60
3,644.45
2,858.66
1.27
2,859.93
1.27
2,858.66
8.62
2,867.28
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Current
Loans to Related Parties ......................................................
Total .......................................................................................................
Nil
Nil
106.00
106.00
39.86
39.86
9.
Finance Lease Receivable
(Unsecured unless otherwise stated)
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Finance Lease Receivable - Non-current ...................................
573.47
Finance Lease Receivable - Current ..............................................
39.16
617.63
48.80
661.09
42.51
9.1
Leasing Arrangements
The Company has entered into Power Purchase Agreements (PPA) with a customer for its assets located at
Jojobera. The assets relate to 30 years of take or pay agreements with the customer to supply electricity at a fixed
plus variable charge. The customer, during the term of the PPAs has a right to purchase the assets and at the
end of the contract is obligated to purchase same on the basis of the valuation determined under the PPAs. This
arrangement analysis pursuant to Ind AS 17 “Leases” identified an embedded finance lease and accordingly, the
said arrangement has been accounted as per Ind AS 17.
308 I Standalone Financials
The Tata Power Company Limited
9.
9.2
Finance Lease Receivable (Contd.)
Amount receivable under Finance Lease
Notes to the Financial Statements
Present value of minimum lease payments
Minimum Lease Payments
As at
31st March,
2017
` crore
107.58
As at
31st March,
2016
` crore
138.42
As at
1st April,
2015
` crore
139.06
As at
31st March,
2017
` crore
23.37
As at
31st March,
2016
` crore
48.73
504.71
795.49
1,407.78
795.15
512.42
900.42
1,551.26
884.83
550.35
994.99
1,684.40
980.80
133.47
455.79
612.63
Nil
123.14
494.56
666.43
Nil
612.63
666.43
703.60
612.63
666.43
703.60
Nil
612.63
NIl
666.43
Nil
703.60
Nil
612.63
Nil
666.43
Nil
703.60
As at
1st April,
2015
` crore
43.10
142.10
518.40
703.60
Nil
Not later than one year ................
Later than one year and not
later than five years .......................
Later than five years ......................
Unearned finance income ...........
Present value of minimum lease
payments receivable .....................
for uncollectible
Allowance
lease payments ...............................
The interest rate inherent in the leases is fixed at the contract for the entire lease term. The average effective interest rate
contracted is approximately in the range of 12.76% - 16.34% per annum (as at 31st March, 2016: 12.76% - 16.34% per annum,
as at 1st April 2015: 12.76% - 16.34% per annum)
10. Other Financial Assets
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Non-current
(i) Accruals
Unsecured, considered good
Interest Accrued on Financial Assets from
Reated Parties ..................................................................
Interest Accrued on Loans to Related Parties .......
Doubtful
Interest Accrued on Loans to Related Parties .......
Less: Allowance for Doubtful Interest ......................
(ii) Security Deposits
Unsecured, considered good .............................................
Doubtful .............................................................................
Less: Allowance for Doubtful Deposits ....................
(iii) Others
Unsecured, considered good
Advance towards Equity ..............................................
Regulatory Assets other than Distribution
Business ..................................................................................
Other Advances [Refer Note 34(c)] ...........................
Total ...........................................................................................................
Nil
Nil
1.24
1.24
1.24
Nil
53.46
31.93
85.39
31.93
53.46
168.00
460.09
138.55
766.64
820.10
34.14
311.59
1.24
346.97
1.24
345.73
50.78
29.43
80.21
29.43
50.78
Nil
609.75
Nil
609.75
1,006.26
12.81
312.82
Nil
325.63
Nil
325.63
62.08
22.59
84.67
22.59
62.08
Nil
950.76
Nil
950.76
1,338.47
Standalone Financials I 309
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
10. Other Financial Assets (Contd.)
Notes to the Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Current
(i) Accruals
Unsecured, considered good
Interest Accrued on Inter-corporate/Bank
Deposits .....................................................................................
Interest Accrued on Investments ..............................
Interest Accrued on Finance Lease Receivable ....
Interest Accrued on Financial Assets at
Amortised Cost ................................................................
Interest Accrued on Loans to Related Parties
Doubtful
Interest Accrued on Inter-corporate Deposits .....
Less: Allowance for Doubtful Interest ......................
(ii) Security Deposits
Unsecured, considered good .............................................
(iii) Inter-corporate Deposits
Unsecured, considered good .............................................
(iv) Others
Unsecured, considered good
Regulatory Assets other than Distribution
Business .............................................................................
Dividend Receivable ......................................................
Derivative Contracts ......................................................
Insurance Claims Receivable ......................................
Total ...........................................................................................................
Nil
6.42
11.73
30.60
1.35
1.49
51.59
1.49
50.10
0.59
Nil
212.64
92.23
Nil
21.15
326.02
376.71
0.48
6.30
12.08
30.60
1.33
4.02
54.81
4.02
50.79
3.61
24.00
85.09
Nil
12.17
36.40
133.66
212.06
5.05
5.86
12.66
38.29
37.40
Nil
99.26
Nil
99.26
3.65
24.00
Nil
75.00
15.90
54.02
144.92
271.83
11. Non-current Tax Assets
Advance Income-tax (Net) ................................................................
Total ...........................................................................................................
Nil
Nil
Nil
Nil
49.52
49.52
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
310 I Standalone Financials
The Tata Power Company Limited
12. Other Assets
Notes to the Financial Statements
Non-current
(i) Capital Advances
Unsecured, considered good ............................................
Doubtful ...................................................................................
Less: Allowance for Doubtful Advances ........................
(ii) Security Deposits
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
39.94
0.21
40.15
0.21
39.94
36.43
0.24
36.67
0.24
36.43
17.68
0.72
18.40
0.72
17.68
Unsecured, considered good ............................................
227.00
227.00
227.00
(iii) Balances with Government Authorities
Unsecured, considered good
Advances ..........................................................................
Amount Paid Under Protest .......................................
VAT/Sales Tax Receivable ............................................
(iv) Unamortised Premium for Leasehold Land
Unsecured, considered good ............................................
(v) Others
Unsecured, considered good
Prepaid Expenses ...........................................................
Others ................................................................................
Doubtful ............................................................................
Less: Allowance for Doubtful Advances .................
Total ...........................................................................................................
Current
(i) Balances with Government Authorities
Unsecured, considered good
27.09
164.96
76.14
268.19
549.46
9.31
11.25
2.22
22.78
2.22
20.56
1,105.15
Advances ..........................................................................
34.72
(ii) Unamortised Premium for Leasehold Land
Unsecured, considered good ............................................
14.50
(iii) Others
Unsecured, considered good
Prepaid Expenses ...........................................................
Advances to Vendors ....................................................
Other Advances ..............................................................
Doubtful ............................................................................
Less: Allowance for Doubtful Advances .................
Total ...........................................................................................................
14.83
197.28
12.50
1.47
226.08
1.47
224.61
273.83
0.10
164.93
103.34
268.37
582.55
16.42
13.19
2.15
31.76
2.15
29.61
1,143.96
54.16
14.50
15.21
215.61
45.58
1.47
277.87
1.47
276.40
345.06
Nil
164.97
131.24
296.21
595.02
20.34
9.23
4.29
33.86
4.29
29.57
1,165.48
36.63
14.50
19.32
214.31
11.80
1.47
246.90
1.47
245.43
296.56
Standalone Financials I 311
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
13.
Inventories
Notes to the Financial Statements
Inventories (lower of cost and net realisable value)
(a) Raw Materials
Fuel - Stores .............................................................................
Fuel-in-Transit .........................................................................
(b) Work-In-Progress ........................................................................
(c) Stores and Spares
Stores and Spare Parts .........................................................
Stores-in-Transit .....................................................................
(d) Loose Tools ....................................................................................
(e) Others
Property under Development ..........................................
Total ...........................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
202.68
107.08
22.83
257.06
4.44
0.30
76.70
671.09
273.60
60.05
15.45
262.31
15.01
0.25
62.38
689.05
291.79
53.71
Nil
259.86
13.69
0.22
49.91
669.18
During the year ended 31st March, 2017 the Company has recognised ` 62.74 crore (31st March, 2016 - ` Nil) as an expense for
inventories carried at net realisable value.
14. Current Investments
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
As at
31st March,
2017
As at
31st March,
2016
As at
1st April,
2015
Face
Value (in
` unless
stated
otherwise)
Quantity
Quantity
Quantity
` crore
` crore
` crore
I
Investment carried at Amortised Cost
Statutory Investments
Contingency Reserve Fund Investments
Government Securities (Unquoted)
7.49% GOI (2017) ..................................................
7.99% GOI (2017) ..................................................
7.59% GOI (2016) ..................................................
7,36,000
8,48,700
Nil
Nil
Nil
19,000
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
6.25% GOI (2018) ..................................................
7.49% GOI (2017) ..................................................
7.99% GOI (2017) ..................................................
1,500,000
25,00,000
33,49,300
Nil
Nil
Nil
Other Investments
Government Securities (Unquoted)
8.07% GOI (2017) ..................................................
Nil
3,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
100
100
100
100
100
100
100
II
Investments carried at Fair Value through Profit and Loss
Mutual Funds (Unquoted)
JM High Liquidity Fund - Direct Plan - Growth .....
Tata Money Market Fund - Direct Plan - Growth ..
Religare Invesco Liquid Fund - Direct Plan - Growth
Nil
Nil
Nil
Nil
Nil
Nil
55,234
54,228
72,771
1,000
1,000
1,000
Total ....................................................................................................................
7.36
8.49
Nil
15.85
15.00
25.00
33.49
73.49
Nil
89.34
Nil
Nil
Nil
Nil
89.34
Nil
Nil
0.19
0.19
Nil
Nil
Nil
Nil
0.03
0.22
Nil
Nil
Nil
Nil
0.22
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
14.01
14.01
14.00
42.02
42.02
312 I Standalone Financials
The Tata Power Company Limited
15. Cash and Cash Equivalents
Notes to the Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
(i) Balances with Banks:
In Current Accounts...............................................................
In Deposit Accounts (with original maturity less
than three months) ...............................................................
(ii) Cheques on Hand ..........................................................................
(iii) Cash on Hand ..................................................................................
Cash and Cash Equivalents as per Balance Sheet ............
Bank Overdraft (Refer Note 26) ........................................................
Cash and Cash Equivalents as per Statement of Cash Flows
43.56
98.00
Nil
0.04
141.60
(0.32)
141.28
32.60
61.82
1.22
Nil
0.01
33.83
(148.93)
(115.10)
204.00
0.02
0.01
265.85
Nil
265.85
16. Other Balances with Banks
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
(a) In Deposit Accounts .....................................................................
1.94
0.71
1.94
(b) In Earmarked Accounts-
Unpaid Dividend Account .................................................
Total .........................................................................................................
12.53
14.47
11.35
12.06
11.48
13.42
Standalone Financials I 313
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
17. Assets classified as held for sale
Notes to the Financial Statements
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Freehold land held for sale (i)...........................................................
Property, Plant and Equipment held for sale (ii) .......................
Investments carried at Fair Value through Other
Comprehensive Income (iii) ..............................................................
Total .........................................................................................................
Liabilities associated with assets held for sale ...................
15.83
24.68
195.21
235.72
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(i) (a) The Company had a power generation unit at Belgaum, Karnataka. Operations at the unit have been discontinued
on 28th February, 2013 with conclusion of Power Purchase Agreement with the customers. The Company has
disposed of majority of the assets located at the unit and is in the process of disposing of the Freehold land.
During the year ended 31st March, 2017, the Company has reclassified the said land as asset held for sale. No
impairment loss has been recognised on reclassification as the Company expects that the fair value (estimated
based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the
carrying amount of ` 2.90 crore as at 31st March, 2017.
(b) The Company was in the process of setting up a thermal power generation unit in Jharkhand state and
accordingly had acquired Freehold land at Tiruldih. Coal for the unit was planned to be sourced from Tubed
coal block in Latehar district. However, in 2014, the H’onble Supreme Court de-allocated the said coal block. As
a result, the project was left with no fuel supply and has become unviable. Hence, the Company has decided to
dispose of the Freehold land at Tiruldih. During the year ended 31st March, 2017, the Company has reclassified
the said land as asset held for sale. Accordingly, the Freehold Land is being carried in the books at its fair value
less cost to sell of ` 9.72 crore (i.e. fair value estimated based on market price of similar properties near the
location less costs to sell the land) resulting in the recognition of ` 34 crore as impairment loss in the statement
of profit and loss.
(c) The Company has ceased power generation at its Diesel (DG set) based unit at Vadaval, Maharashtra and has
disposed of the DG sets. The Company is in the process of disposing freehold land. During the year ended 31st
March, 2017, the Company has reclassified the said freehold land at the the said unit as asset held for sale. No
impairment loss has been recognised on reclassification as the Company expects that the fair value (estimated
based on the recent market prices of similar properties in similar locations) less costs to sell is higher than the
carrying amount ` 3.21 crore as at 31st March, 2017.
(ii) The Company has ceased power generation at Unit 4 at Trombay, Maharashtra and has initiated process for disposal
of its assets. During the year ended 31st March, 2017, the Company has reclassified property, plant and equipment
at the said unit as asset held for sale. No impairment loss has been recognised on reclassification as the Company
expects that the estimated fair value less costs to sell is higher than the carrying amount of ` 24.68 crore as at 31st
March, 2017.
(iii) The Company has decided to divest certain portion of its investments carried at fair value through other
comprehensive income in Tata Teleservices (Maharashtra) Limited and Indian Energy Exchange Limited. Hence, the
said investments have been classified as held for sale at fair value of ` 195.21 crore as at 31st March, 2017.
314 I Standalone Financials
The Tata Power Company Limited
18. Regulatory Deferral Account
Notes to the Financial Statements
Regulatory Deferral Account - Liability
Regulatory Liabilities........................................................................
Total .......................................................................................................
Regulatory Deferral Account - Asset
Regulatory Assets ..............................................................................
Total .......................................................................................................
Rate Regulated Activities
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
656.00
656.00
1,914.00
1,914.00
680.38
680.38
2,093.09
2,093.09
18.36
18.36
1,841.86
1,841.86
(i) As per the Ind AS-114 ‘Regulatory Deferral Accounts’ the business of electricity distribution is a Rate Regulated activity
wherein Maharashtra Electricity Regulatory Commission (MERC), the regulator determines Tariff to be charged from
consumers based on prevailing regulations in place.
MERC Multi Year Tariff Regulations, 2015 (MYT Regulations), is applicable for the period beginning from 1st April, 2016
to 31st March, 2021. These regulations require MERC to determine tariff in a manner wherein the Company can recover
its fixed and variable costs including assured rate of return on approved equity base, from its consumers. The Company
determines the Revenue, Regulatory Assets and Liabilities as per the terms and conditions specified in MYT Regulations.
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March,
2017, is as follows:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
Opening Regulatory Assets net of Liabilities .......................................
(A)
1,412.71
1,823.50
Regulatory Income/(Expenses) during the year
(i) Power Purchase Cost .............................................................................
2,206.98
2,558.42
(ii) Other expenses as per the terms of Tariff Regulations
including ROE ...........................................................................................
(iii) Collected during the year as per approved Tariff ........................
Regulatory Income/(Expenses) (net) (i + ii + iii) ....................................
Regulatory Income (net) in respect of earlier years ...........................
Income/(Expenses) on account of Rate Regulated Activities .........
Carrying cost recognised in the Statement of Profit and Loss
relating to uncollected amounts .............................................................
Amount Collected (net) in respect of earlier years.............................
(B)
(C)
(D)
Closing Regulatory Asset .............................................................................
(A + B + C + D)
Regulatory Assets ...........................................................................................
Regulatory Liabilities.....................................................................................
872.55
(3,092.53)
(13.00)
77.00
64.00
103.54
(322.25)
1,258.00
1,914.00
(656.00)
951.58
(3,948.00)
(438.00)
56.59
(381.41)
220.00
(249.38)
1,412.71
2,093.09
(680.38)
1,258.00
1,412.71
Standalone Financials I 315
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
19 a. Equity - Share Capital
Authorised
Notes to the Financial Statements
As at 31st March, 2017
` crore
Number
As at 31st March, 2016
` crore
Number
As at 1st April, 2015
` crore
Number
Equity Shares of ` 1/- each .....................................................
300,00,00,000
300.00
300,00,00,000
300.00
300,00,00,000
300.00
Cumulative Redeemable Preference Shares of
` 100/- each .................................................................................
2,29,00,000
2,29,00,000
229.00
529.00
229.00
529.00
2,29,00,000
229.00
529.00
Issued
Equity Shares [including 28,32,060 shares (31st March,
2016 - 29,76,172 shares, 1st April, 2015 - 29,80,316 shares)
not allotted but held in abeyance, 44,02,700 shares
cancelled pursuant to a Court Order and 4,80,40,400
shares of the Company held by the erstwhile The
Andhra Valley Power Supply Company Limited cancelled
pursuant to the Scheme of Amalgamation sanctioned by
the High Court of Judicature, Bombay] ...................................
Subscribed and Paid-up
Equity Shares fully Paid-up [excluding 28,32,060 shares
(31st March, 2016 - 29,76,172 shares, 1st April, 2015 -
29,80,316 shares) not allotted but held in abeyance,
44,02,700 shares cancelled pursuant to a Court Order and
4,80,40,400 shares of the Company held by the erstwhile
The Andhra Valley Power Supply Company Limited
cancelled pursuant to the Scheme of Amalgamation
sanctioned by the High Court of Judicature, Bombay] .....
Less: Calls in arrears [including ` 0.01 crore (31st March,
2016 - ` 0.01 crore, 1st April, 2015 - ` 0.01 crore) in
respect of the erstwhile The Andhra Valley Power
Supply Company Limited and the erstwhile The Tata
Hydro-Electric Power Supply Company Limited]
276,17,00,970
276.17
276,17,00,970
276.17
276,17,00,970
276.17
270,47,73,510
270.48
270,46,29,398
270.46
270,46,25,254
270.46
0.04
270.44
0.04
270.42
0.04
270.42
0.06
270.48
Add: Equity Shares forfeited - Amount paid .........................
16,52,300
0.06
16,52,300
0.06
16,52,300
Total Issued, Subscribed and fully Paid-up Share
Capital ................................................................................................
270.50
270.48
316 I Standalone Financials
The Tata Power Company Limited 19 a. Equity - Share Capital (Contd.)
(i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period
Notes to the Financial Statements
As at 31st March, 2017
` crore
Number
As at 31st March, 2016
` crore
Number
As at 1st April, 2015
` crore
Number
Equity Shares
At the beginning of the year ..............................
270,62,81,698
270.48
270,62,77,554
270.48
237,47,24,660
Issued during the year ..........................................
144,112
0.02
4,144
*
33,15,52,894
Outstanding at the end of the year .................
270,64,25,810
270.50
270,62,81,698
270.48
270,62,77,554
237.33
33.15
270.48
* Denotes figures below ` 50,000/-.
(ii) Terms/rights attached to Equity Shares
The Company has issued only one class of Equity Shares having a par value of ` 1/- per share. Each holder of Equity
Shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of
the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of Equity
Shares held by the shareholders.
(iii) Details of shareholders holding more than 5% shares in the Company
As at 31st March, 2017
% Holding
Number
As at 31st March, 2016
% Holding
Number
As at 1st April, 2015
% Holding
Number
Equity Shares of ` 1/- each fully paid
Tata Sons Limited ...................................................
Life Insurance Corporation of India .................
83,97,99,682
33,22,45,379
Matthews Pacific Tiger Fund...............................
16,46,20,436
19 b. Unsecured Perpetual Securities
Unsecured Perpetual Securities ......................................................
Add: Issued during the year ..............................................................
Total ..........................................................................................................
31.05
12.28
6.09
83,97,99,682
36,98,66,780
16,56,20,436
31.05
13.68
6.12
82,18,99,682
35,48,05,781
16,75,45,436
30.39
13.12
6.19
As at
31st March, 2017
` crore
1,500.00
Nil
1,500.00
As at
31st March, 2016
` crore
1,500.00
Nil
1,500.00
As at
1st April, 2015
` crore
1,500.00
Nil
1,500.00
In an earlier year the Company raised ` 1,500 crore through issue of Unsecured Perpetual Securities (the “Securities”). These
Securities are perpetual in nature with no maturity or redemption and are callable only at the option of the Company.
The distribution on these Securities are 11.40% with a step up provision if the Securities are not called after 10 years. The
distribution on the Securities may be deferred at the option of the Company, if during the six months preceding the relevant
distribution payment date, the Company has made no payment on, or redeemed or repurchased, any securities ranking pari
passu with, or junior to the instrument. As these Securities are perpetual in nature and ranked senior only to the Share Capital
of the Company and the Company does not have any redemption obligation, these are considered to be in the nature of
equity instruments.
Standalone Financials I 317
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
20. Other Equity
Notes to the Financial Statements
General Reserve
Opening Balance ...............................................................................................................................
Add: Amount transferred from Retained Earnings.........................................................
Closing Balance ..........................................................................................................................
Securities Premium Reserve
Opening Balance ........................................................................................................................
Add: Share Premium collected during the year ..............................................................
Closing Balance ..........................................................................................................................
Add:
Debenture Redemption Reserve
Opening Balance ........................................................................................................................
Add: Amount transferred from Retained Earnings.........................................................
Closing Balance ..........................................................................................................................
Capital Redemption Reserve .....................................................................................................
Capital Reserve ................................................................................................................................
Retained Earnings
Opening balance (Refer Note 1 below) .............................................................................
Other Comprehensive Income/(Expense) arising from Remeasurement
of Defined Benefit Obligation (Net of Tax) .................................................
Profit for the year ................................................................................................
Payment of Dividend (Refer Note 2 below) ...............................................
Tax on Dividend ...................................................................................................
Transfer from Equity Instrument through Other Comprehensive
Income ....................................................................................................................
Transfer to General Reserve ............................................................................
Transfer to Debenture Redemption Reserve ............................................
Distribution on Unsecured Perpetual Securities (Net of Tax) ..............
Less:
Closing Balance ..........................................................................................................................
Equity Instrument through Other Comprehensive Income
Opening Balance ........................................................................................................................
Add/(Less): Transfer to Retained Earnings (Refer Note 4 below)................................
Add/(Less): Change in Fair Value of Equity Instrument through Other
Comprehensive Income ...................................................................................
Gain on sale of Investment classified at FVTOCI ......................................
Deferred Tax ..........................................................................................................
Closing Balance ..........................................................................................................................
Total .......................................................................................................................................................
Notes:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
3,866.24
Nil
3,866.24
5,634.13
0.85
5,634.98
545.24
455.66
1,000.90
1.60
61.66
5,110.80
(7.45)
283.45
351.99
0.59
0.04
Nil
455.66
112.44
(644.72)
4,466.08
(139.69)
0.04
3,789.08
77.16
3,866.24
5,634.11
0.02
5,634.13
434.66
110.58
545.24
1.60
61.66
4,423.94
(5.20)
1,354.99
351.99
11.60
Nil
77.16
110.58
111.60
686.86
5,110.80
113.11
Nil
(113.97)
0.10
0.12
(253.40)
14,778.06
(246.36)
Nil
(6.44)
(139.69)
15,079.98
1.
Includes gain on fair valuation of land which is not available for distribution ` 222.31 crore (31st March, 2016 -
` 222.31 crore).
2. On 23rd September, 2016, a dividend of ` 1.30 per share was paid to the holders of fully paid equity shares. In August,
3.
2015, the dividend paid was ` 1.30 per share.
In respect of the year ended 31st March, 2017, the directors propose a dividend of ` 1.30 per share to be paid on fully
paid shares. This equity dividend is subject to approval at the annual general meeting and has not been included as a
liability in the financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares.
The total estimated equity dividend to be paid is ` 351.99 crore.
4. During the year ended 31st March, 2017, the Company has sold 6,60,899 equity shares in Tata Teleservices
(Maharashtra) Limited. The resultant loss of ` 0.04 crore has been transferred from Equity Instrument through Other
Comprehensive Income to Retained Earnings.
318 I Standalone Financials
The Tata Power Company Limited
Notes to the Financial Statements
20. Other Equity (Contd.)
Nature and purpose of reserves
General Reserve:
General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the general
reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income,
items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
Securities Premium Reserve:
Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions
of the Companies Act, 2013.
Debenture Redemption Reserve:
The Company is required to create a Debenture Redemption Reserve out of the profits which is available for payment of
dividend for the purpose of redemption of debentures.
Capital Redemption Reserve:
Capital Redemption Reserve represents amounts set aside on redemption of preference shares.
Capital Reserve:
Capital Reserve consists of forfeiture of the amount received from Tata Sons Limited on preferential allotment of convertible
warrants in the Company, on the lapse of the period to exercise right to convert the said warrants and on forfeiture of amounts
paid on Debentures.
Retained Earnings
Retained Earnings are the profits of the company earned till date net of appropriations.
Equity Instrument through Other Comprehensive Income:
This reserve represents the cumulative gains and losses arising on revaluation of equity instruments measured at fair value
through other comprehensive income, net of amounts reclassified to retained earnings when those assets are disposed of.
Standalone Financials I 319
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
21. Non-current Borrowings
Notes to the Financial Statements
(i) Unsecured - At Amortised Cost
Redeemable Non-Convertible
Debentures
(a) 10.75% Series 2072 ..................
(b) 9.41% Series 2023 .....................
(c) 9.48% Series 2019 .....................
(d) 7.70% Series 2019 .....................
(e) 9.32% Series 2017 .....................
1,488.80
498.85
499.70
Nil
Nil
2,487.35
` crore
Nil
Nil
Nil
3,500.00
999.77
4,499.77
Non-
current
` crore
1,486.87
498.47
499.48
Nil
999.17
3,483.99
Bonds
(f ) 8.50% Euro Notes 2017 ...........
Nil
386.22
394.54
Term Loans from Banks
(g) ICICI Bank .....................................
(h) JP Morgan Chase Bank ...........
(i) BNP Paribas .................................
Deferred Payment Liabilities
605.00
Nil
Nil
605.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(j) Sales Tax Deferral ......................
(A)
28.33
3,120.68
15.17
4,901.16
43.01
3,921.54
As at 31st March, 2017
Current
As at 31st March, 2016
Current
As at 1st April, 2015
Current
Non-
current
` crore
Non-
current
` crore
1,485.38
Nil
499.28
Nil
998.63
2,983.29
372.21
2.90
200.00
210.00
412.90
56.99
3,825.39
169.70
224.70
209.35
500.00
500.00
Nil
1,603.75
1,058.75
Nil
517.50
320.51
Nil
Nil
1,896.76
` crore
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2.90
200.00
210.00
412.90
13.98
426.88
16.00
25.00
Nil
Nil
Nil
Nil
41.00
72.19
Nil
35.00
25.50
Nil
90.10
222.79
` crore
Nil
Nil
Nil
Nil
Nil
Nil
Nil
5.80
Nil
Nil
5.80
11.15
16.95
16.00
25.00
Nil
Nil
Nil
217.33
258.33
41.25
Nil
35.00
24.25
Nil
Nil
100.50
137.82
174.80
209.54
500.00
500.00
Nil
1,522.16
1,157.81
123.00
Nil
477.50
993.75
1,127.90
3,879.96
16.00
25.00
Nil
Nil
Nil
Nil
41.00
78.75
Nil
Nil
38.75
66.25
90.10
273.85
153.73
199.73
209.44
500.00
500.00
Nil
1,562.90
1,056.56
60.00
482.50
516.25
Nil
1,038.00
3,153.31
31.68
12.67
44.35
12.67
57.02
12.67
266.38
35.13
301.52
35.13
336.65
Nil
Nil
Nil
Nil
1,058.10
27.00
Nil
325.06
5,727.18
8,847.86
Nil
Nil
47.80
362.65
5,263.81
Nil
Nil
345.87
5,062.08
8,983.62
Nil
Nil
47.80
311.59
738.47
Nil
Nil
1,451.77
4,952.28
8,777.67
35.13
90.10
Nil
0.31
138.21
497.04
513.99
(ii) Secured - At Amortised Cost
Redeemable Non-Convertible
Debentures
(a) 9.15% Series 2025 .....................
(b) 9.15% Series 2025 .....................
(c) 9.40% Series 2022 .....................
(d) 10.10% Series 2018 ..................
(e) 10.40% Series 2018 ..................
(f ) 7.10% Series 2015 .....................
Term Loans from Banks
(g) HDFC Bank ..................................
(h) ICICI Bank .....................................
IDBI Bank ......................................
(i)
(j) Kotak Mahindra Bank ..............
(k) State Bank of India ...................
IDFC Bank ....................................
(l)
Term Loans from Others
(m) Asian Development Bank ......
(n) Indian Renewable Energy
Development Agency
Limited .........................................
(o) Infrastructure Development
Finance Company Limited ....
(p) Technology Development
Board, Department of
Science & Technology,
Government of India ...............
(q) Export Import Bank of India .
(B)
Total .................................... (A) + (B)
320 I Standalone Financials
The Tata Power Company Limited
21. Non-current Borrowings (Contd.)
Security
Notes to the Financial Statements
(i)
(ii)
The Debentures mentioned in (a) have been secured by a charge on movable properties and assets of the Company at
Agaswadi and Visapur in Satara District of Maharashtra and Poolavadi in Tirupur District of Tamil Nadu.
The Debentures mentioned in (b) have been secured by a pari passu charge on the assets of the wind farms situated at
Samana in Gujarat and Gadag in Karnataka.
(iii)
The Debentures mentioned in (c) have been secured by a charge on the land situated at Village Takve Khurd (Maharashtra).
(iv)
(v)
(vi)
The Debentures mentioned in (d) and (e) have been secured by a pari passu charge on land in Village Takve Khurd
(Maharashtra) and movable and immovable properties in and outside Maharashtra, except assets of windmill projects,
present and future.
The Debentures mentioned in (f ) had been secured by a charge on land in Village Takve Khurd (Maharashtra), movable
and immovable properties in and outside Maharashtra, as also all transmission stations/lines, receiving stations and
sub-stations in Maharashtra, except assets of windmill projects, present and future.
The Loans from HDFC Bank and IDBI Bank, mentioned in (g) and (i) respectively have been secured by a pari passu charge
on all movable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both
present and future) including movable machinery, machinery spares, tools and accessories.
(vii) The Loan from ICICI Bank, mentioned in (h) secured by way of first pari-passu charge on all the movable assets (excluding
land and buildings), present and future (except assets of all windmill projects present and future), including movable
machinery, current assets, machinery spares, tools and accessories.
(viii) The Loan from Kotak Mahindra Bank mentioned in (j) has been secured by a pari passu charge on all movable Fixed
Assets (excluding land and building), present and future (except assets of all wind mill projects, both present and future)
including movable machinery, machinery spares, tools and accessories.
(ix)
(x)
(xi)
The Loan from State Bank of India mentioned in (k) has been secured by a pari passu charge on all movable Fixed
Assets (excluding land and building), present and future (except assets of all windmill projects, both present and future)
including movable machinery, machinery spares, tools and accessories.
The Loan from IDFC Bank (Loan from Infrastructure Development Finance Company Limited has been transferred to
IDFC Bank on its demerger), mentioned in (l) and (o) have been secured by a pari passu charge on all movable Fixed
Assets (excluding land and building), present and future (except assets of all wind projects both present and future)
including movable machinery, machinery spares, tools and accessories.
The Loans from Asian Development Bank and Indian Renewable Energy Development Agency Limited mentioned in
(m) and (n) respectively have been secured by a first charge on the tangible movable properties, plant & machinery and
immovable properties situated at Khandke, Brahmanvel and Sadawaghapur in Maharashtra.
(xii) The Loan from Technology Development Board, Department of Science & Technology, Government of India mentioned
in (p) is secured by way of Bank Guarantee.
Standalone Financials I 321
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
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322 I Standalone Financials
The Tata Power Company Limited
22. Other Financial Liabilities
Notes to the Financial Statements
Non-current
Security Deposits from Customers ..........................................
Total ..........................................................................................................
31.98
31.98
33.59
33.59
32.33
32.33
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
Current
(a) Current Maturities of Long-term Debt (Refer Note 21)
(b) Interest accrued but not due on Borrowings ................
(c) Investor Education and Protection Fund shall be
credited by the following amounts namely: **
Unpaid Dividend .................................................................
Unpaid Matured Deposits ................................................
Unpaid Matured Debentures ..........................................
(d) Other Payables
Payables towards Purchase of Fixed Assets ...............
Derivative Contracts ...........................................................
Security Deposits from Consumers ..............................
Security Deposits from Others .......................................
Tender Deposits from Vendors .......................................
Regulatory Liabilities other than Distribution
5,263.81
396.87
16.32
0.03
0.09
177.08
49.91
174.57
22.15
1.33
738.47
226.71
14.75
0.03
0.09
208.06
9.54
170.29
2.73
0.91
513.99
222.66
14.49
0.03
0.09
269.41
0.47
152.21
4.95
2.00
Business ..................................................................................
Other Financial Liabilities .................................................
Total ...........................................................................................................
412.50
117.66
6,632.32
353.21
142.00
1,866.79
885.50
161.99
2,227.79
** Includes amounts outstanding aggregating ` 0.87 crore (31st March, 2016 - ` 0.84 crore, 1st April, 2015 - ` 0.85 crore) for more
than seven years pending legal cases.
Standalone Financials I 323
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
23. Provisions
Notes to the Financial Statements
Non-current
Provision for Employee Benefits
Compensated Absences ..............................................................
Post-Employment Medical Benefits [Refer Note 39(2.3)]
Other Defined Benefit Plans [Refer Note 39(2.3)] ...............
Other Employee Benefits.............................................................
Other Provisions
Provision for Warranties ...............................................................
Total ..........................................................................................................
Current
Provision for Employee Benefits
Compensated Absences ...............................................................
Gratuity (Net) [Refer Note 39(2.3)].............................................
Post-Employment Medical Benefits [Refer Note 39(2.3)]
Other Defined Benefit Plans [Refer Note 39(2.3)] ...............
Other Employee Benefits..............................................................
Other Provisions
Provision for Warranties ................................................................
Provision for Wealth Tax ................................................................
Total ...........................................................................................................
23.1 Other Provisions
Balance as at 1st April, 2015
Additional provisions recognised ..................................................................
Reductions arising from payments ...............................................................
Reductions arising from remeasurements or settlement without
cost ...........................................................................................................................
Balance as at 31st March, 2016 ..................................................................
Balance as at 31st March, 2016 ..................................................................
Additional provisions recognised ..................................................................
Reductions arising from payments ...............................................................
Reductions arising from remeasurements or settlement without
costs .........................................................................................................................
Balance as at 31st March, 2017 ..................................................................
Notes:
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
89.22
24.86
36.66
16.98
167.72
2.45
170.17
77.07
20.57
34.30
17.27
149.21
2.36
151.57
77.57
18.49
33.72
16.40
146.18
3.72
149.90
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
5.65
8.67
0.83
5.26
1.86
22.27
30.06
Nil
30.06
52.33
5.86
28.66
0.73
5.28
2.18
42.71
29.80
1.08
30.88
73.59
Warranties
30.11
29.46
(1.76)
Wealth Tax
2.52
Nil
Nil
(25.65)
32.16
32.16
31.20
(2.13)
(28.72)
32.51
(1.44)
1.08
1.08
Nil
Nil
(1.08)
Nil
5.41
26.17
0.64
5.04
2.76
40.02
26.39
2.52
28.91
68.93
` crore
Total
32.63
29.46
(1.76)
(27.09)
33.24
33.24
31.20
(2.13)
(29.80)
32.51
1. Provision for employee benefits includes provision for gratuity, post-employment, medical benefits, pension
(including Director pension), ex-gratia death benefit and retirement gift.
2. The provision for warranty claims represents estimated warranty liability for the products sold. These estimates
are established using historical information on the nature, frequency and average cost of warranty claims and
management estimates regarding possible future incidence based on corrective actions on product failures.
324 I Standalone Financials
The Tata Power Company Limited
24. Deferred Tax Liabilities (Net)
Notes to the Financial Statements
Deferred Tax Assets............................................................................
Deferred Tax Liabilities ....................................................................
Total - Net Deferred Tax Liabilities..............................................
As at
31st March, 2017
` crore
84.34
1,556.43
1,472.09
As at
31st March, 2016
` crore
96.35
1,640.29
1,543.94
As at
1st April, 2015
` crore
98.90
1,538.86
1,439.96
2016-17
Deferred tax assets in relation to
Allowance for Doubtful Debts, Deposits and
Advances ......................................................................................
Provision for Employee Benefits, Entry Tax and
Others ............................................................................................
Deferred tax liabilities in relation to
Finance Leases ............................................................................
Property, Plant and Equipment (Refer Note below) .....
Financial Assets at Fair Value through Other
Comprehensive Income ..........................................................
Distribution on Perpetual Bonds .........................................
Others ............................................................................................
Net Deferred Tax Liability ...................................................
Note:
Opening
Balance
Recognised in
Profit or loss
Recognised
in other
comprehensive
Income
Recognised
directly in
equity
19.96
76.39
96.35
142.21
1,445.82
22.14
24.20
5.92
1,640.29
1,543.94
7.05
(23.01)
(15.96)
2.27
(85.30)
Nil
Nil
(1.17)
(84.20)
(68.24)
Nil
3.95
3.95
Nil
Nil
(0.12)
Nil
Nil
(0.12)
(4.07)
Nil
Nil
Nil
Nil
Nil
Nil
0.46
Nil
0.46
0.46
` crore
Closing
balance
27.01
57.33
84.34
144.48
1,360.52
22.02
24.66
4.75
1,556.43
1,472.09
During the year ended 31st March, 2017, the Company has reassessed the deferred tax liabilities in respect of its units
falling under tax holiday period having regard to (a) favourable order passed by the Dispute Resolution Panel (DRP)
pursuant to the Order issued by the Hon’ble Supreme Court in respect of another assessee and (b) the Circular issued
by the Central Board of Direct Taxes in this regard and has reversed deferred tax liabilities amounting to ` 180.85 crore.
2015-16
Deferred Tax Assets in relation to
Allowance for Doubtful Debts, Deposits and
Advances ...........................................................................
Provision for Employee Benefits, Entry Tax and
Others .................................................................................
Deferred Tax Liabilities in relation to
Finance Leases .................................................................
Property, Plant and Equipment .................................
Financial Assets at Fair Value through Other
Comprehensive Income ...............................................
Distribution on Perpetual Bonds ..............................
Others ...............................................................................
Net Deferred Tax Liability ........................................
Opening
Balance
Recognised in
Profit or loss
Recognised
in other
comprehensive
Income
Recognised
directly in
equity
17.54
81.36
98.90
147.34
1,344.43
15.70
24.20
7.19
1,538.86
1,439.96
2.42
(7.53)
(5.11)
(5.13)
101.39
Nil
Nil
(1.27)
94.99
100.10
Nil
2.56
2.56
Nil
Nil
6.44
Nil
Nil
6.44
3.88
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
` crore
Closing
balance
19.96
76.39
96.35
142.21
1,445.82
22.14
24.20
5.92
1,640.29
1,543.94
Standalone Financials I 325
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
25. Other Liabilities
Notes to the Financial Statements
Non-current
Consumers’ Benefit Account .......................................................
Deferred Revenue - Service Line Contributions from
Consumers .........................................................................................
Deferred Rent Liability ...................................................................
Guarantee Commission Obligation ..........................................
Total ...........................................................................................................
Current
Statutory Liabilities .........................................................................
Advance from Customers/Public Utilities ...............................
Statutory Consumer Reserves ....................................................
Special Appropriation towards Project Cost .........................
Other Liabilities ................................................................................
Total ...........................................................................................................
26. Current Borrowings
Unsecured - At Amortised Cost
From Banks
(a) Buyer’s Line of Credit ........................................................
(b) Bank Overdraft ....................................................................
(c) Short-term Loans ...............................................................
From Others
Commercial Paper [maximum amount outstanding
during the year is ` 3,000 crore (31st March, 2016 -
` 1,950 crore)] ..............................................................................
Secured - At Amortised Cost
From Banks
(a) Short-term Loans ...............................................................
Total ...........................................................................................................
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
21.94
110.66
46.69
8.05
187.34
21.94
107.24
47.67
Nil
176.85
21.94
104.53
9.74
Nil
136.21
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
127.32
158.35
658.23
533.61
2.02
1,479.53
121.18
121.09
644.23
533.61
0.51
1,420.62
171.12
243.86
623.23
533.61
0.99
1,572.81
As at
31st March, 2017
` crore
As at
31st March, 2016
` crore
As at
1st April, 2015
` crore
409.00
0.32
Nil
1,982.66
2,391.98
Nil
2,391.98
370.06
148.93
Nil
988.10
1,507.09
Nil
1,507.09
286.78
Nil
185.00
1,176.27
1,648.05
93.00
1,741.05
Loan from banks is secured against first pari passu charge over all current assets of the Company, present and future, with
other working capital lenders, except for specific wind assets (for which charge has been ceded).
Security
27. Current tax liabilities
Income-tax payable ..............................................................................
Total ...........................................................................................................
As at
31st March, 2017
` crore
18.26
18.26
As at
31st March, 2016
` crore
29.74
29.74
As at
1st April, 2015
` crore
Nil
Nil
326 I Standalone Financials
The Tata Power Company Limited 28. Revenue from Operations
Notes to the Financial Statements
(a) Revenue from Power Supply and Transmission Charges
Add/(Less): Income to be adjusted in future tariff determination (Net) .
Add/(Less): Income to be adjusted in future tariff determination (Net)
in respect of earlier years ................................................................
(b) Revenue from Contracts - Electronic Products (including Excise Duty)
(c) Project/Operation Management Services
Assets Under Lease ..................................................................................................
Others ...........................................................................................................................
(d) Other Operating Revenue
Rental of Land, Buildings, Plant and Equipment, etc. .................................
Income in respect of Services Rendered .........................................................
Income from Finance Lease ..................................................................................
Amortisations of Service Line Contributions .................................................
Sale of Fly Ash ............................................................................................................
Sale of Carbon Credits ............................................................................................
Miscellaneous Revenue .........................................................................................
Total .............................................................................................................................................
29. Other Income
(a) Interest Income
(i) On Financial Assets carried at Amortised Cost
Interest on Bank Deposits ..............................................................................
Interest from Inter-corporate Deposits .....................................................
Interest on Overdue Trade Receivables .....................................................
Interest on Non-current Investment - Contingency Reserve Fund .
Interest on Non-current Investment - Deferred Tax Liability Fund ..
Interest on Financial Instruments - Subsidiaries ....................................
Interest on Financial Instruments - Joint Ventures ................................
Other Interest ......................................................................................................
(ii) Others
Interest on Income-tax Refund .....................................................................
Total .............................................................................................................................................
For the year ended
31st March, 2017
` crore
5,575.54
(58.00)
For the year ended
31st March, 2016
` crore
6,631.53
(25.17)
(100.69)
5,416.85
541.63
891.83
148.55
1,040.38
15.53
64.72
89.68
11.04
1.79
9.47
26.97
219.20
7,218.06
155.41
6,761.77
549.88
987.47
166.61
1,154.08
14.07
66.49
95.97
10.26
1.94
11.14
31.34
231.21
8,696.94
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
0.34
1.15
15.35
7.35
21.21
223.19
0.44
0.39
269.42
Nil
269.42
3.15
3.61
116.60
6.62
21.16
399.45
0.84
0.45
551.88
0.40
552.28
Standalone Financials I 327
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
29. Other Income (Contd.)
Notes to the Financial Statements
(b) Dividend Income
From Non-current Investments
Subsidiaries .................................................................................................................
Joint Ventures .............................................................................................................
Associates ....................................................................................................................
Others - Equity Investments Designated at FVTOCI .....................................
(c) Gain/(Loss) on Investments
Gain on Sale of Current Investment measured at FVTPL ............................
Gain on Sale of Investment in Associates measured at Cost .....................
(d) Other Non-operating Income
Guarantee Commission from Subsidiaries and Joint Ventures ................
Gain/(Loss) on Disposal of Property, Plant and Equipment (Net) ............
Delayed Payment Charges .....................................................................................
Other Income .............................................................................................................
Insurance Claim Accrued/(Reversed) .................................................................
(e) Others
Net Gain/(Loss) on Foreign Exchange................................................................
Total ..............................................................................................................................................
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
519.23
114.50
12.43
3.82
649.98
41.36
Nil
41.36
24.88
(0.23)
6.78
0.01
Nil
31.44
(78.37)
913.83
204.30
93.07
12.24
18.45
328.06
9.29
10.57
19.86
42.75
27.99
7.80
0.30
(16.75)
62.09
(57.02)
905.27
30. Employee Benefits Expense
Salaries and Wages ..................................................................................................................
Contribution to Provident Fund [Refer Note 39(1)] .....................................................
Contribution to Superannuation Fund [Refer Note 39(1)] ........................................
Retiring Gratuities [Refer Note 39(2.3)].............................................................................
Leave Encashment Scheme ..................................................................................................
Pension Scheme .......................................................................................................................
Staff Welfare Expenses ............................................................................................................
Less:
Employee Cost Capitalised ..........................................................................................
Employee Cost Recovered ...........................................................................................
Employee Cost Inventorised .......................................................................................
Total .................................................................................................................
For the year ended
31st March, 2017
` crore
599.39
24.02
10.23
26.37
27.63
6.13
115.42
809.19
For the year ended
31st March, 2016
` crore
604.89
21.53
10.13
14.82
16.36
6.60
102.74
777.07
111.68
Nil
36.71
148.39
660.80
109.50
0.02
19.08
128.60
648.47
328 I Standalone Financials
The Tata Power Company Limited 31. Finance Costs
Notes to the Financial Statements
(a) Interest Expense:
Borrowings
Interest on Debentures ...........................................................................................
Interest on - Euro Notes ..........................................................................................
Interest on Loans - Banks & Financial Institutions .........................................
Others
Interest on Consumer Security Deposits ..........................................................
Other Interest and Commitment Charges .......................................................
Less: Interest Capitalised .........................................................................................
(b) Other Borrowing Cost:
Other Finance Costs .................................................................................................
Total ..............................................................................................................................................
Note:
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
684.63
33.78
553.75
18.70
15.44
1,306.30
33.42
1,272.88
22.80
1,295.68
483.92
34.06
521.20
13.07
109.07
1,161.32
28.38
1,132.94
13.18
1,146.12
The weighted average capitalisation rate on the Company’s general borrowings is 9.50% per annum (31st March, 2016 -
10.00% per annum).
32. Other Expenses
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Consumption of Stores, Oil, etc. (excluding ` 68.73 crore on repairs and
maintenance - Previous Year - ` 79.26 crore) ....................................................................
Rental of Land, Buildings, Plant and Equipment, etc...................................................
Repairs and Maintenance -
(i) To Buildings and Civil Works .........................................................................................
(ii) To Machinery and Hydraulic Works ............................................................................
(iii) To Furniture, Vehicles, etc. .............................................................................................
Rates and Taxes .........................................................................................................................
Insurance .....................................................................................................................................
Other Operation Expenses ....................................................................................................
Ash Disposal Expenses ...........................................................................................................
Warranty Charges .....................................................................................................................
Travelling and Conveyance Expenses ...............................................................................
Consultants’ Fees ......................................................................................................................
Auditors’ Remuneration .........................................................................................................
Cost of Services Procured ......................................................................................................
Carried over …
98.20
30.87
71.50
212.54
11.10
295.14
46.52
32.69
125.53
16.58
2.48
36.88
36.54
6.96
136.48
864.87
34.24
31.07
81.78
209.42
14.08
305.28
72.46
39.74
124.39
17.84
3.81
29.19
34.22
7.46
149.25
848.95
Standalone Financials I 329
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
32. Other Expenses (Contd.)
Notes to the Financial Statements
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
Brought forward …
864.87
848.95
Bad Debts ....................................................................................................................................
Allowance for Doubtful Debts and Advances (Net) .....................................................
Impairment of Non-current assets held for sale ...........................................................
Impairment of Non-current Investments in Joint Ventures ......................................
Amortisation of Payment Towards Leasehold Land ....................................................
Donations ....................................................................................................................................
Legal Charges ............................................................................................................................
Corporate Social Responsibility Expenses.......................................................................
Excise Duty Paid ........................................................................................................................
Transfer to Contingency Reserve ........................................................................................
Miscellaneous Expenses ........................................................................................................
Nil
19.34
34.00
18.08
12.03
Nil
16.01
22.79
15.81
14.00
50.06
0.46
65.50
Nil
28.37
14.52
3.96
13.17
29.23
6.43
21.00
59.77
Total ..............................................................................................................................................
1,066.99
1,091.36
(i) Payment to the auditors (inclusive of service tax):
For Statutory Audit .........................................................................................................
For Taxation Matters .......................................................................................................
For Company Law Matters ...........................................................................................
For Other Services ...........................................................................................................
For Reimbursement of Expenses ...............................................................................
For Service Tax
Total .....................................................................................................................................
(ii) Corporate Social Responsibility Expenses
Contribution to Tata Power Community Development Trust ..........................
Expenses incurred by the Company ..........................................................................
Total ......................................................................................................................................
Amount required to be spent as per section 135 of the Act ............................
Amount spent during the year on:
(a) Construction/Acquisition of asset .......................................................................
(b) On purposes other than (a) above ......................................................................
* Denotes figures below ` 50,000/-.
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
3.95
0.39
Nil
1.65
0.07
0.90
6.96
3.95
0.39
*
2.14
0.03
0.95
7.46
For the year ended
31st March, 2017
` crore
For the year ended
31st March, 2016
` crore
21.16
1.63
22.79
21.84
Nil
22.79
27.00
2.01
29.01
23.22
Nil
29.01
330 I Standalone Financials
The Tata Power Company Limited
33.
Income taxes
1.
Income taxes recognised in statement of profit and loss
Notes to the Financial Statements
31st March, 2017
` crore
31st March, 2016
` crore
Current tax
In respect of the current year .................................................................................................
In respect of the previous years ............................................................................................
Deferred tax
In respect of the current year .................................................................................................
Adjustments to deferred tax attributable to changes in tax rates ...........................
Total income tax expense recognised in the current year ...................................
The income tax expense for the year can be reconciled to the accounting profit as follows:
290.92
Nil
290.92
(68.24)
Nil
(68.24)
222.68
349.00
(69.80)
279.20
76.38
23.72
100.10
379.30
31st March, 2017
` crore
31st March, 2016
` crore
Profit Before Tax considered for tax working ...................................................................
Income tax expense calculated at 34.61% ........................................................................
Effect of Income that is exempt from taxation ................................................................
Effect of expenses that are not deductible in determining taxable profit ............
Effect of Tax Incentives .............................................................................................................
Effect of Lower Tax rate on Dividend Income from Foreign Subsidiaries ..............
Effect of additional tax on account of Minimum Alternate Tax (MAT) applicability
Effect of Reversal of Deferred Tax on Tax Holiday assets due to change in
Estimates (Refer Note 24) ........................................................................................................
Effect of Tax on Distribution on Perpetual Securities ....................................................
Effect of Tax on Other Items ...................................................................................................
Effect on deferred tax balances due to the changes in income tax rate from
33.99% to 34.61% .......................................................................................................................
Adjustments recognised in the current year in relation to the current tax of
prior years .....................................................................................................................................
Income tax expense recognised in statement of profit or loss ..........................
Notes:
506.13
175.16
(231.53)
371.85
(77.97)
(45.77)
153.68
(180.65)
59.26
(1.35)
Nil
222.68
Nil
222.68
1,734.29
600.20
(262.21)
78.86
(54.75)
(16.52)
37.33
Nil
59.19
(16.72)
23.72
449.10
(69.80)
379.30
1. The tax rate used for the years 2016-17 and 2015-16 reconciliations above is the corporate tax rate of 34.61%
payable by corporate entities in India on taxable profits under the Indian tax law.
2. The Company has to pay taxes based on the higher of Income Tax profit of the company or MAT at 21.3416% of
book profit for the year 2016-17 and 2015-16.
3. The Minimum Alternate Tax (MAT) rate applicable is 21.3416% of the book profit for the year 2016-17 and 2015-16.
Standalone Financials I 331
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
33.
Income taxes (Contd.)
2.
Income tax recognised directly in equity
Notes to the Financial Statements
Current tax
Effect of Distribution on Unsecured Perpetual Securities ...........................................
Deferred tax
Effect of Distribution on Unsecured Perpetual Securities ...........................................
Income tax recognised directly in equity .....................................................................
3.
Income tax recognised in other comprehensive income
Deferred tax
Arising on Income and expenses recognised in other comprehensive income
Net fair value gain on investments in equity shares at FVTOCI ................................
Remeasurements of defined benefit obligation ............................................................
Total income tax recognised in other comprehensive income .........................
Bifurcation of the income tax recognised in other comprehensive income into:
Items that will be reclassified to profit or loss ................................................................
Items that will not be reclassified to profit or loss ........................................................
31st March, 2017
` crore
31st March, 2016
` crore
(59.26)
(59.26)
0.46
(58.80)
(59.19)
(59.19)
Nil
(59.19)
31st March, 2017
` crore
31st March, 2016
` crore
(0.12)
(3.95)
(4.07)
Nil
(4.07)
(4.07)
6.44
(2.56)
3.88
Nil
3.88
3.88
34.
(a) Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of the Company has implemented the 4000 MW Ultra
Mega Power Project at Mundra (“Mundra UMPP”). As at 31st March, 2017, the Company has a long-term investment of
` 11,136.15 crore (31st March, 2016 - ` 6,443.85 crore, 1st April, 2015 - ` 6,047.90 crore) in equity (including perpetual security)
of CGPL, has given loans of ` Nil (31st March, 2016 - ` 3,795.89 crore, 1st April, 2015 - `.3,034.56 crore) to CGPL, and has given
guarantees of ` 2,781.69 crore (31st March, 2016 - ` 3,039.24 crore, 1st April, 2015 - ` 3,403.27 crore) to CGPL’s lenders.
The Management of CGPL, on an ongoing basis, reviews and assesses the recoverability of the carrying value of its
fixed assets based on certain externally available information and assumptions relating to future fuel prices, revenues
and operating parameters and useful life of the plant, which the management believes reasonably reflect the future
expectation. In view of the estimation uncertainties, the future cash flows, the assumptions are monitored periodically
and adjustments are made if the conditions relating to the assumptions indicate that such adjustment is appropriate.
Based on the assessment of recoverability of the carrying value of fixed assets as at 31st March, 2017 and having regard to the
overall returns expected from CGPL, no impairment as at 31st March, 2017 is considered necessary for long-term investments
of ` 11,136.15 crore in CGPL and no provision is required in respect of guarantees of ` 2,781.69 crore given to CGPL’s lenders.
(b) The Company has investments in equity shares of Tata Teleservices Limited (TTSL) which are measured at fair value through
other comprehensive income. Based on a valuation report obtained from TTSL, the Company had reassessed the fair value of
its investment in TTSL as at 30th September, 2016 and recorded fair value loss of ` 124.46 crore as at that date. In the absence
of updated information, it has not been possible to revise the valuation as at 31st March, 2017 and consequently adjustments,
if any, to the carrying value of investments in TTSL of ` 384.88 crore as at 31st March, 2017 have not been made.
(c) During the year, DoCoMo had filed a petition before the Delhi High Court for implementation of the Arbitration Award
related to its exercise of the ‘put option’ to the transfer of its entire shareholding in TTSL at a minimum predetermined price
of ` 58.045 per share pursuant to which the Delhi High Court directed Tata Sons (as representative of the Tata Group) to
deposit the damages including costs and interest in an escrow account. Accordingly, the Company deposited ` 790 crore with
Tata Sons, being its share of the contractual obligation. On 28th April, 2017, the Delhi High Court ruled that the Arbitration
Award is enforceable in India. Consequently, the Company has as at 31st March, 2017 written-off ‘other advances’ of
` 651.45 crore, being the difference between the fair value of equity shares of TTSL determined as at 30th September, 2016
and the consideration payable to DoCoMo deposited with Tata Sons. This has been disclosed as an exceptional item. The
balance of ` 138.55 crore, which represents the fair value of shares receivable from DoCoMo based on a valuation as at
30th September, 2016, is being carried forward as Other Advance and included in Other Non-current Financial Asset. As
stated in note 34(b) above, valuation of TTSL shares as at 31st March, 2017 is not available.
332 I Standalone Financials
The Tata Power Company Limited
35. Micro and small enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined
based on the information available with the Company and the required disclosures are given below:
Notes to the Financial Statements
31st March, 2017
` crore
31st March, 2016
` crore
31st March, 2015
` crore
(a) Principal amount remaining unpaid as on 31st March ....
(b) Interest due thereon as on 31st March @ .............................
(c) The amount of Interest paid along with the amounts
of the payment made to the supplier beyond the
appointed day @ ............................................................................
(d) The amount of Interest due and payable for the year @
(e) The amount of Interest accrued and remaining unpaid
as at 31st March @ .........................................................................
(f ) The amount of further interest due and payable even in
the succeeding years, until such date when the interest
dues as above are actually paid @ ...........................................
19.20
Nil
Nil
Nil
Nil
Nil
24.60
Nil
Nil
Nil
Nil
Nil
17.11
Nil
Nil
Nil
Nil
Nil
Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of
information collected by the Management. This has been relied upon by the auditors.
@ Amounts unpaid to MSM vendors on account of retention money have not been considered for the purpose of interest
calculation.
36. Commitments
(a) Estimated amount of Contracts remaining to be
executed on capital account and not provided for ...........
541.26
523.92
662.48
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
(b) Other Commitments
(i)
Commitment towards purchase of Equity Shares
of Trust Energy Resources Pte. Limited from
Khopoli Investment Limited, subject to approval
of Reserve Bank of India ...................................................
(ii) The Company has given an undertaking for
non-disposal of shares to the lenders of Tata
Power Delhi Distribution Limited in respect of its
outstanding borrowings ..................................................
(iii) The Company has given an undertaking to the
Bankers of Cennergi Pty. Limited, wherein it would
ensure that Cennergi Pty. Limited would satisfy its
commitment to the Bank .................................................
Nil
29.13
27.48
341.88
442.61
520.78
77.47
71.54
83.03
Standalone Financials I 333
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
36. Commitments (Contd.)
Notes to the Financial Statements
(iv)
In terms of the Sponsor Support agreement entered into between the Company, Coastal Gujarat Power Limited (CGPL)
and lenders of CGPL, the Company has undertaken to provide support by way of base equity contribution to the extent of
25% of CGPL’s project cost and additional equity or subordinated loans to be made or arranged for, if required as per the
financing agreements to finance the project. The Sponsor Support Agreement also includes support by way of additional
financial support for any overrun in project costs, operational loss and Debt Service Reserve Guarantee as provided under
the financing agreements. Pending achievement of the “Project Financial Completion Date” as defined under the Financing
Agreement, the Sponsor support will continue. In terms of the conditions of the financing agreements, the Company
has provided total Additional Subordinated Loans and Equity of ` 6,022.59 crore (31st March, 2016 - ` 5,047.00 crore,
1st April, 2015 - ` 4,235.82 crore) to CGPL. The loans would be repaid in accordance with the conditions of the Subordination
and Hypothecation Agreements either out of additional equity to be infused by the Company or out of the balance Indian
rupee term loans receivable by CGPL in future on the fulfilment of conditions in the Coal Supply and Transportation
Agreements Completion Date (CSTACD) agreement.
(v)
In respect of NELCO Limited, the Company has undertaken to arrange for the necessary financial support to NELCO Limited
in the form of interim short term funding for meeting its business requirements.
(vi) The Company has undertaken to arrange for the necessary financial support to its Subsidiaries Khopoli Investments
Limited, Bhivpuri Investments Limited, Industrial Power Utility Limited, Tata Power Jamshedpur Distribution Limited and
Tata Power International Pte. Limited.
(vii)
In respect of Maithon Power Limited (MPL), the Company jointly with Damodar Valley Corporation (DVC) has undertaken
to the lenders of MPL, to provide support by way of base equity contribution and additional equity or subordinated loans
to meet the increase in Project Cost. Further, the Company has given an undertaking to MPL to fulfil payment obligations
of Tata Power Trading Company Limited (TPTCL) and Tata Power Delhi Distribution Limited (TPDDL) in case of their default.
(viii) In terms of pre-implementation agreement entered into with Government of Himachal Pradesh and the consortium
consisting of the Company and SN Power Holding Singapore Pte. Ltd. (Company being the Lead Member of the consortium)
for the investigation and implementation of Dugar Hydro Electric Project, the Company has undertaken as Lead Member
to undertake/perform various obligations pertaining to Dugar Project.
(ix)
In accordance with the terms of the Share Purchase Agreement and the Shareholder’s Agreement entered into by Panatone
Finvest Limited (PFL), an associate of the Company, with the Government of India, PFL has contractually undertaken
a “Surplus Land” obligation including agreeing to transfer 45% of the share capital of the Resulting Company, at Nil
consideration, to the Government of India upon Demerger of the Surplus Land by Tata Communication Limited (TCL). The
Company has till date acquired 1,34,22,037 shares of TCL from PFL. The Company would be entitled to be allotted 4.71% of
the share capital of the Resulting Company based on its holding of 1,34,22,037 shares of TCL. The Company has given an
undertaking to PFL to bear the “Surplus Land” obligation pertaining to these shares.
37. Contingent Liabilities
Contingent liabilities
a) Claims against the Company not acknowledged as
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
debts consist of
(i)
(ii)
Interest and penalty demand disputed by the
Company relating to Entry tax claims for the
financial years 2005-06 to 2012-13. [Refer Note
(f ) below] .............................................................................
Disallowance of carrying cost and other costs
by Appellate Tribunal for Electricity (ATE) has
been disputed by the Company. Based on legal
opinions (the Company has a strong case), the
Company has filed Special Leave Petition (SLP)
with the Supreme Court ................................................
Carried over …
1,967.43
1,813.69
1,587.06
269.00
2,236.43
Nil
1,813.69
Nil
1,587.06
334 I Standalone Financials
The Tata Power Company Limited
37. Contingent Liabilities (Contd.)
Notes to the Financial Statements
Brought forward …
31st March, 2017
` crore
2,236.43
31st March, 2016
` crore
1,813.69
1st April, 2015
` crore
1,587.06
(iii)
Custom duty claims (including
interest and
penalty) disputed by the Company relating to
applicability and classification of coal [Payment
made under protest against these claims of
` 135.52 crore (31st March, 2016 - ` 135.52 crore,
1st April, 2015 - ` 135.52 crore)] .....................................
(iv)(a) Way Leave
fees
interest) claims
(including
disputed by the Company relating to rates
charged ................................................................................
(b) Demand raised by collector towards periodic
revision in lease rent disputed by the Company ..
(v) Rates, Cess, Excise and Custom Duty claims
disputed by the Company ...............................................
(vi) A Suit has been filed against the Company
claiming compensation by way of damages for
alleged wrongful disconnection of power supply.
Interest accrued thereon ..................................................
(vii) Octroi claims disputed by the Company, in respect
of octroi exemption claimed by the Company ........
(viii) Compensation disputed by private land owners
in respect of private land acquired under the
provisions of Maharashtra Industrial Development
Act, 1961 .................................................................................
(ix) Other claims against the Company not
acknowledged as debts ....................................................
170.01
170.01
170.01
84.18
150.00
38.01
Nil
Nil
5.03
72.58
Nil
36.85
Nil
Nil
5.03
62.60
Nil
41.14
20.51
120.60
5.03
22.00
22.00
22.00
45.46
2,751.12
26.93
2,147.09
98.12
2,127.07
Notes:
1 Amounts in respect of employee related claims/disputes, regulatory matters is not ascertainable.
2
Future cash flows in respect of above matters are determinable only on receipt of judgements/decisions pending
at various forums/authorities.
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
b) Other Contingent Liabilities:
Taxation matters for which liability, relating to issues
of deductibility and taxability, is disputed by the
Company and provision is not made (computed on the
basis of assessments which have been re-opened and
assessments remaining to be completed) including
interest demanded ` 1.17 crore (31st March, 2016 - ` 1.17
crore, 1st April, 2015 - ` 1.17 crore) .............................................
259.69
232.99
209.52
Standalone Financials I 335
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
37. Contingent Liabilities (Contd.)
c)
Indirect exposures of the Company:
(i)
Guarantees given :
Coastal Gujarat Power Limited
Khopoli Investments Limited
Bhira Investments Limited
Trust Energy Resources Pte. Limited
Tubed Coal Mines Limited
Mandakini Coal Company Limited
Energy Eastern Pte. Limited
Tata Power Renewable Energy Limited
Maithon Power Limited
Tata Power International Pte. Limited
Cennergi Pty. Limited
Tata Power Solar Systems Limited
Tata Power Trading Company Limited
Welspun Renewables Energy Pvt. Ltd.
(ii) Shares pledged :
Tata Teleservices Limited
Powerlinks Transmission Limited
Coastal Gujarat Power Limited
Industrial Energy Limited
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
2,781.69
3,039.24
3,403.27
2,877.72
(equivalent to
USD 443.75 million)
2,911.12
(equivalent to
USD 448.90 million)
777.55
(equivalent to
USD 119.90 million)
3,217.97
(equivalent to
USD 485.75 million)
2,521.21
(equivalent to
USD 403.41 million)
17.56
(equivalent to
USD 2.65 million)
3,933.59
(equivalent to
USD 629.40 million)
763.47
(equivalent to
USD 115.24 million)
268.43
(equivalent to
USD 42.95 million)
11.36
20.26
11.36
20.26
11.36
115.79
382.62
(equivalent to
USD 59 million)
364.36
(equivalent to
USD 55 million)
171.87
(equivalent to
USD 27.50 million)
2,225.00
Nil
614.57
126.58
391.76
144.00
278.86
(equivalent to
USD 43 million)
517.33
(equivalent to
USD 78.09 million)
488.04
(equivalent to
USD 78.09 million)
Nil
46.72
(equivalent to
ZAR 104.72 million)
257.07
(equivalent to
ZAR 496.48 million)
300.00
Nil
1,320.00
Nos.
18,27,08,138
23,86,80,000
150.00
70.00
Nil
Nos.
Nil
Nil
Nil
Nos.
18,27,08,138
18,27,08,138
23,86,80,000
23,86,80,000
310,25,44,200
307,55,14,200
305,00,90,700
12,56,74,200
12,56,74,200
12,56,74,200
Mandakini Coal Company Limited
2,00,43,000
2,00,43,000
2,00,43,000
Tata Power Renewable Energy Limited
25,81,14,935
25,81,14,935
24,86,79,935
Itezhi Tezhi Power Corporation
4,52,500
4,52,500
Nil
The Company has pledged the above shares of subsidiaries, joint ventures and TTSL, with the lenders for borrowings
availed by the respective subsidiaries, joint ventures and TTSL.
336 I Standalone Financials
The Tata Power Company Limited 37. Contingent Liabilities (Contd.)
Notes to the Financial Statements
d) (i)
In respect of the Standby Charges dispute with Reliance Infrastructure Ltd. (R-Infra) for the period from
1st April, 1999 to 31st March, 2004, the Appellate Tribunal of Electricity (ATE), set aside the Maharashtra Electricity
Regulatory Commission (MERC) Order dated 31st May, 2004 and directed the Company to refund to R-Infra as on
31st March, 2004, ` 354.00 crore (including interest of ` 15.14 crore) and pay interest at 10% per annum thereafter.
As at 31st March, 2017 the accumulated interest was ` 229.56 crore (31st March, 2016 - ` 218.36 crore, 1st April,
2015 - ` 207.16 crore) (` 11.20 crore for the year ended 31st March, 2017). On appeal, the Hon’ble Supreme Court
vide its Interim Order dated 7th February, 2007, has stayed the ATE Order and in accordance with its directives,
the Company has furnished a bank guarantee of the sum of ` 227.00 crore and also deposited `.227.00 crore with
the Registrar General of the Court which has been withdrawn by R-Infra on furnishing the required undertaking
to the Court.
Further, no adjustment has been made for the reversal in terms of the ATE Order dated 20th December, 2006, of
Standby Charges credited in previous years estimated at ` 519.00 crore, which will be adjusted, wholly by a withdrawal/
set off from certain Statutory Reserves as allowed by MERC. No provision has been made in the accounts towards
interest that may be finally determined as payable to R-Infra. Since 1st April, 2004, the Company has accounted
Standby Charges on the basis determined by the respective MERC Tariff Orders.
The Company is of the view, supported by legal opinion, that the ATE’s Order can be successfully challenged and
hence, adjustments, if any, will be recorded by the Company on the final outcome of the matter.
(ii) MERC vide its Tariff Order dated 11th June, 2004, had directed the Company to treat the investment in its wind
energy project as outside the Mumbai Licensed Area, consider a normative Debt Equity ratio of 70:30 to fund the
Company’s fresh capital investments effective 1st April, 2003 and had also allowed a normative interest charge @
10% p.a. on the said normative debt. The change to the Clear Profit and Reasonable Return (consequent to the
change in the capital base) as a result of the above mentioned directives for the period upto 31st March, 2004, has
been adjusted by MERC from the Statutory Reserves along with the disputed Standby Charges referred to in Note
37(d)(i) above. Consequently, the effect of these adjustments would be made with the adjustments pertaining to the
Standby Charges dispute as mentioned in Note 37(d)(i) above.
e) The Company, in terms of the Share Purchase Agreement, as stated in Note 36 (b)(ix), has undertaken additional “Surplus
Land” obligation towards the purchase of 11,40,000 shares of Tata Communications Ltd. by Tata Sons Limited from
Panatone Finvest Ltd.
f ) The Company had received demands from various levels of sales tax departments in respect of entry tax on imports
aggregating `.2,213.64 crore (including interest of ` 643.99 crore and penalty of ` 740.89 crore) for financial years
2005-06 to 2012-13. The Company paid ` 246.21 crore under protest. The Hon’ble Bombay High Court upheld the levy,
in respect of an appeal filed by the Company. The Company filed a Special Leave Petition against the above Order before
the Hon’ble Supreme Court, which extended the interim stay granted by the Hon’ble Bombay High Court and requested
to list the matter after pleadings are completed. The Company is of the view, supported by legal opinions, that the
Company has a strong case on merits. Accordingly, ` 1,967.43 crore (including interest of ` 643.99 crore and penalty of
` 740.89 crore) will be accounted by the Company based on the final outcome of the matter [Refer Note No. 37 (a)(i)].
38. Other Disputes
In the matter of claims raised by the Company on R-Infra, towards (i) the difference in the energy charges for the period March
2001 to May 2004 and (ii) for minimum off-take charges of energy for the period 1998 to 2000, MERC has issued an Order
dated 12th December, 2007 in favour of the Company. The total amount payable by R-Infra, including interest, is estimated to
be ` 323.87 crore as on 31st December, 2007. ATE in its Order dated 12th May, 2008 on appeal by R-Infra, has directed R-Infra
to pay the difference in the energy charges amounting to `.34.98 crore for the period March 2001 to May 2004. In respect of
the minimum off-take charges of energy for the period 1998 to 2000 claimed by the Company from R-Infra, ATE has directed
MERC that the issue be examined afresh and after the decision of the Hon’ble Supreme Court in the Appeals relating to the
distribution licence and rebates given by R-Infra. The Company and R-Infra had filed appeals in the Hon’ble Supreme Court.
The Hon’ble Supreme Court, vide its Order dated 14th December, 2009, has granted stay against ATE Order and has directed
R-Infra to deposit with the Hon’ble Supreme Court, a sum of ` 25.00 crore and furnish bank guarantee of ` 9.98 crore. The
Company had withdrawn the above mentioned sum subject to an undertaking to refund the amount with interest, in the
event the Appeal is decided against the Company. On grounds of prudence, the Company has not recognised any income
arising in respect of these matters.
Standalone Financials I 337
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
39. Employee benefit plan
1.
Defined Contribution plan
Notes to the Financial Statements
The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit
plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll
costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by
the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the
government specified minimum rates of return and recognises such contributions and shortfall, if any, as an expense in the
year it is incurred. Having regard to the assets of the fund and the return on the investments, the Company does not expect
any shortfall in the foreseeable future.
The Company has recognised ` 24.02 crore (31st March, 2016 - ` 21.53 crore) for provident fund contributions and
` 10.23 crore (31st March, 2016 - ` 10.13 crore) for superannuation contributions in the Statement of Profit and Loss. The
contributions payable to these plans by the Company are at rates specified in the rules of the schemes.
2.
Defined benefit plans
2.1
The Company operates the following unfunded/funded defined benefit plans:
Unfunded:
Post-Employment Medical Benefits
The Company provides certain post-employment health care benefits to superannuated employees at some of its locations.
In terms of the plan, the retired employees can avail free medical check-up and medicines at Company’s facilities.
Pension (including Director pension)
The Company operates a defined benefit pension plan for employees who have completed 15 years of continuous service.
The plan provides benefits to members in the form of a pre-determined lump sum payment on retirement. Executive Director,
on retirement, is entitled to pension payable for life including HRA benefit. The level of benefit is approved by the Board of
Directors of the Company from time to time.
Ex-Gratia Death Benefit
The Company has a defined benefit plan granting ex-gratia in case of death during service. The benefit consists of a pre-
determined lump sum amount along with a sum determined based on the last drawn basic salary per month and the length
of service.
Retirement Gift
The Company has a defined benefit plan granting a pre-determined sum as retirement gift on superannuation of an employee.
Funded:
Gratuity
The Company has a defined benefit gratuity plan. The gratuity plan is primarily governed by the Payment of Gratuity Act,
1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The level of benefits provided
depends on the member’s length of service and salary at the retirement date. The gratuity plan is funded plan. The fund has
the form of a trust and is governed by Trustees appointed by the Company. The Trustees are responsible for the administration
of the plan assets and for the definition of the investment strategy in accordance with the regulations. The funds are deployed
in recognised insurer managed funds in India. The Company does not fully fund the liability and maintains a target level of
funding to be maintained over a period of time based on estimates of expected gratuity payments.
338 I Standalone Financials
The Tata Power Company Limited
39. Employee benefit plan (Contd.)
2.2
The principal assumptions used for the purposes of the actuarial valuations were as follows:
Notes to the Financial Statements
Valuation as at
31st March, 2017
31st March, 2016
1st April, 2015
Discount Rate/Expected Rate of Return on Plan Assets ......
6.90% p.a.
7.70% p.a.
7.90% p.a.
Salary Growth Rate
— Management .................................................................................
— Non-Management .......................................................................
Turnover Rate - Age 21 to 44 years
— Management .................................................................................
— Non-Management .......................................................................
Turnover Rate - Age 45 years and above
— Management .................................................................................
— Non-Management .......................................................................
Pension Increase Rate ......................................................................
Mortality Table ....................................................................................
8% p.a.
7% p.a.
8% p.a.
0.50% p.a.
2.50% p.a.
0.50% p.a.
3% p.a.
8% p.a.
7% p.a.
8% p.a.
0.50% p.a.
2.50% p.a.
0.50% p.a.
3% p.a.
8% p.a.
7% p.a.
8% p.a.
0.50% p.a.
2.50% p.a.
0.50% p.a.
3% p.a.
Indian Assured
Lives Mortality
(2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Annual Increase in Healthcare Cost ............................................
8% p.a.
8% p.a.
8% p.a.
2.3
The amounts recognised in the financial statements and the movements in the net defined benefit obligations over
the year are as follows:
Funded Plan:
Balance as at 1st April, 2015 ......................................................
Current service cost ..........................................................................
Past service cost .................................................................................
Interest Cost/(Income) .....................................................................
Amount recognised in statement of profit and loss ......
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in
interest cost/(income)......................................................................
Actuarial (gains)/losses arising from changes in financial
assumptions ........................................................................................
Actuarial (gains)/losses arising from experience ...................
Amount recognised in other comprehensive income
Employer contribution ....................................................................
Benefits paid .......................................................................................
Acquisitions credit/(cost) ................................................................
Balance as at 31st March, 2016 ................................................
Present value
of obligation
` crore
212.95
13.46
Nil
16.11
29.57
Nil
2.77
(3.61)
(0.84)
Nil
(18.02)
Nil
223.66
Fair value of
plan assets
` crore
(186.78)
Nil
Nil
(14.75)
(14.75)
6.53
Nil
Nil
6.53
Nil
Nil
Nil
(195.00)
Net amount
` crore
26.17
13.46
Nil
1.36
14.82
6.53
2.77
(3.61)
5.69
Nil
(18.02)
Nil
28.66
Standalone Financials I 339
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
39. Employee benefit plan (Contd.)
Funded Plan:
Balance as at 31st March, 2016 ..............................................
Current service cost ........................................................................
Past service cost ...............................................................................
Interest Cost/(Income) ...................................................................
Amount recognised in statement of profit and loss ....
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in
interest cost/(income)....................................................................
Actuarial (gains)/losses arising from changes in financial
assumptions ......................................................................................
Actuarial (gains)/losses arising from experience .................
Amount recognised in other comprehensive income
Employer contribution ..................................................................
Benefits paid .....................................................................................
Acquisitions credit/(cost) ..............................................................
Balance as at 31st March, 2017 ..............................................
Composition of the plan assets is as follows:
Insurer Managed Funds*
Present value
of obligation
` crore
223.66
13.97
12.42
15.91
42.30
Fair value of
plan assets
` crore
(195.00)
Nil
Nil
(15.93)
(15.93)
Nil
(12.70)
13.40
5.91
19.31
Nil
(25.51)
(3.72)
256.04
Nil
Nil
(12.70)
(23.74)
Nil
Nil
(247.37)
Net amount
` crore
28.66
13.97
12.42
(0.02)
26.37
(12.70)
13.40
5.91
6.61
(23.74)
(25.51)
(3.72)
8.67
* In the absence of detailed information regarding plan assets which is funded with Insurance Companies, the composition of
each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been
disclosed.
Unfunded Plan:
Balance as at 1st April, 2015 ..................................................................................................................................................
Current service cost ......................................................................................................................................................................
Past service cost .............................................................................................................................................................................
Interest Cost/(Income) .................................................................................................................................................................
Amount recognised in statement of profit and loss ..................................................................................................
Remeasurement (gains)/losses
Actuarial (gains)/losses arising from changes in financial assumptions ...................................................................
Actuarial (gains)/losses arising from experience ...............................................................................................................
Amount recognised in other comprehensive income ...............................................................................................
Benefits paid ...................................................................................................................................................................................
Acquisitions credit/(cost) ............................................................................................................................................................
Balance as at 31st March, 2016 ............................................................................................................................................
Amount
` crore
57.89
2.39
Nil
3.16
5.55
1.05
1.02
2.07
(4.63)
Nil
60.88
340 I Standalone Financials
The Tata Power Company Limited
39. Employee benefit plan (Contd.)
Unfunded Plan:
Notes to the Financial Statements
Balance as at 31st March, 2016 ............................................................................................................................................
Current service cost ......................................................................................................................................................................
Past service cost .............................................................................................................................................................................
Interest Cost/(Income) .................................................................................................................................................................
Amount recognised in statement of profit and loss ..................................................................................................
Remeasurement (gains)/losses
Actuarial (gains)/losses arising from changes in financial assumptions ...................................................................
Actuarial (gains)/losses arising from experience ...............................................................................................................
Amount recognised in other comprehensive income ...............................................................................................
Benefits paid
Acquisitions credit/(cost) ............................................................................................................................................................
Balance as at 31st March, 2017 ............................................................................................................................................
2.4
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:
Amount
` crore
60.88
2.49
0.42
4.49
7.40
4.68
0.11
4.79
(5.46)
Nil
67.61
Change in assumption
Increase in assumption
Decrease in assumption
31st
March,
2017
31st
March,
2016
31st
March,
2017
` crore
31st
March,
2016
` crore
31st
March,
2017
` crore
31st
March,
2016
` crore
Discount rate .................
0.50%
0.50% Decrease by
11.52
9.33
Increase by
12.39
10.05
Salary/Pension
growth rate ....................
Claim rates .....................
Mortality rates ..............
0.50%
0.50% Increase by
5%
20%
5% Decrease by
20% Decrease by
Healthcare cost ............
0.50%
0.50% Increase by
11.49
18.12
3.64
1.97
7.60 Decrease by
6.18
1.05
Increase by
Increase by
3.32 Decrease by
10.79
16.30
4.68
1.77
7.24
5.21
1.22
2.70
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur and changes in some of the assumptions may be co-related. When calculating the sensitivity
of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit
obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when
calculating the defined benefit liability recognised in the balance sheet.
The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.
Standalone Financials I 341
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
39. Employee benefit plan (Contd.)
2.5
The expected maturity analysis of undiscounted defined benefit obligation is as follows:
Notes to the Financial Statements
Funded
Unfunded
31st March, 2017
` crore
31st March, 2016
` crore
31st March, 2017
` crore
31st March, 2016
` crore
Within 1 year ..............................................
Between 1 - 2 years ..................................
Between 2 - 3 years ..................................
Between 3 - 4 years ..................................
Between 4 - 5 years ..................................
16.73
26.98
32.75
33.47
36.55
Beyond 5 years ..........................................
174.60
16.36
25.41
25.68
30.52
30.25
166.88
6.29
6.82
6.72
6.80
6.72
34.64
6.23
6.53
6.51
6.46
6.52
20.20
The weighted average duration of the defined benefit obligation is 7 years (31st March, 2016 - 7 years).
The contribution expected to be made by the Company during the financial year 2017-18 has not been ascertained.
2.6
Risk exposure:
Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed
below:
Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan assets underperform
this yield, it will result in deficit. These are subject to interest rate risk. To offset the risk, the plan assets have been deployed in
high grade insurer managed funds.
Inflation rate risk:
Higher than expected increase in salary will increase the defined benefit obligation.
Demographic risk:
This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability
and retirement. The effect of these decrements on the defined benefit obligations is not straight forward and depends upon
the combination of salary increase, discount rate and vesting criterion.
40.
In respect of the contracts pertaining to the Strategic Engineering Business and Project Management Services, disclosures
required as per Ind AS 11 are as follows:
(a) Contract revenue recognised as revenue during the year ` 506.13 crore (31st March, 2016 - ` 549.88 crore).
(b) In respect of contracts in progress –
(i) The aggregate amount of costs incurred and recognised profits upto 31st March, 2017 ` 1,042.45 crore (31st March,
2016 - ` 935.78 crore).
(ii) Advances and progress payments received as at 31st March, 2017 ` 615.09 crore (31st March, 2016 - ` 695.37 crore,
1st April, 2015 - ` 813.25 crore).
(iii) Retention money included as at 31st March, 2017 in Sundry Debtors ` 13.13 crore (31st March, 2016 - ` 8.47 crore,
1st April, 2015 - ` 6.32 crore).
(c) (i) Gross amount due to customers for contract work as a liability as at 31st March, 2017 ` 44.20 crore (31st March, 2016 -
` 66.00 crore,1st April, 2015 - ` 191.44 crore).
(ii) Gross amount due from customers for contract work as an asset as at 31st March, 2017 ` 370.03 crore (31st March, 2016
- ` 240.40 crore, 1st April, 2015 - ` 191.89 crore).
342 I Standalone Financials
The Tata Power Company Limited
41. Financial Instruments
Notes to the Financial Statements
1.
1.1
Financial Assets and Financial Liabilities
The carrying value and fair value of financial instruments by categories as at 31st March, 2017 is as follows:
Fair value
through
P&L
Fair value
through OCI
Derivative
instruments
not in
hedging
relationship
(NDH)
Amortised
cost
Total
carrying
value
` crore
Total fair
value
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
797.88
Nil
Nil
Nil
Nil
Nil
797.88
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
141.60
14.47
1,420.02
Nil
386.18
560.98
22.82
612.63
1,196.81
4,355.51
141.60
14.47
1,420.02
797.88
386.18
560.98
22.82
612.63
1,196.81
5,153.39
141.60
14.47
1,420.02
797.88
397.84
560.98
22.82
612.63
1,196.81
5,165.05
1,380.25
1,380.25
1,380.25
Nil
49.91
49.91
16,503.65
1,350.58
19,234.48
16,503.65
1,400.49
19,284.39
16,733.67
1,400.49
19,514.41
Assets:
Cash and cash equivalents ...............
Other balances with banks ...............
Trade receivables .................................
Investments #
Equity and Others ........................
Government securities ...............
Unbilled revenues ...............................
Loans ........................................................
Finance lease receivables ..................
Other financial assets .........................
Total .................................................................
Liabilities:
Trade payables ......................................
Borrowings (includes current
maturities) ..............................................
Other financial liabilities ...................
Total .................................................................
The carrying value and fair value of financial instruments by categories as at 31st March, 2016 is as follows:
Fair value
through
P&L
Fair value
through OCI
Derivative
instruments
not in
hedging
relationship
(NDH)
Amortised
cost
Total
carrying
value
` crore
Total fair
value
Assets:
Cash and cash equivalents ...............
Other balances with banks ...............
Trade receivables .................................
Investments #
Equity and Others ........................
Government securities ...............
Unbilled revenues ...............................
Loans ........................................................
Finance lease receivables ..................
Other financial assets .........................
Total .................................................................
Liabilities:
Trade payables ......................................
current
Borrowings
maturities) ..............................................
Other financial liabilities ...................
Total .................................................................
(includes
Nil
Nil
Nil
258.27
Nil
Nil
Nil
Nil
Nil
258.27
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,107.50
Nil
Nil
Nil
Nil
Nil
1,107.50
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
12.17
12.17
33.83
12.06
1,242.99
Nil
376.14
299.96
3,750.45
666.43
1,206.15
7,588.01
33.83
12.06
1,242.99
1,365.77
376.14
299.96
3,750.45
666.43
1,218.32
8,965.95
33.83
12.06
1,242.99
1,365.77
378.68
299.96
3,750.45
666.43
1,218.32
8,968.49
Nil
1,296.38
1,296.38
1,296.38
Nil
9.54
9.54
11,229.18
1,152.37
13,677.93
11,229.18
1,161.91
13,687.47
11,285.23
1,161.91
13,743.52
Standalone Financials I 343
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
41. Financial Instruments (Contd.)
Notes to the Financial Statements
The carrying value and fair value of financial instruments by categories as at 1st April, 2015 is as follows:
Fair value
through
P&L
Fair value
through OCI
Derivative
instruments
not in
hedging
relationship
(NDH)
Amortised
cost
Total
carrying
value
` crore
Total fair
value
Assets:
Cash and cash equivalents ...............
Other balances with banks ...............
Trade receivables .................................
Investments #
Equity and Others ........................
Government securities ...............
Unbilled revenues ...............................
Loans ........................................................
Finance lease receivables ..................
Other financial assets .........................
Total .................................................................
Liabilities:
(includes
Trade payables ......................................
Borrowings
current
maturities) ..............................................
Other financial liabilities ...................
Total .................................................................
Nil
Nil
Nil
285.67
Nil
Nil
Nil
Nil
Nil
285.67
Nil
Nil
Nil
Nil
Nil
Nil
Nil
1,353.85
Nil
Nil
Nil
Nil
Nil
1,353.85
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
15.90
15.90
265.85
13.42
1,745.14
Nil
357.14
226.75
2,907.14
703.60
1,594.40
7,813.44
265.85
13.42
1,745.14
1,639.52
357.14
226.75
2,907.14
703.60
1,610.30
9,468.86
265.85
13.42
1,745.14
1,639.52
357.14
226.75
2,907.14
703.60
1,610.30
9,468.86
Nil
1,334.58
1,334.58
1,334.58
Nil
0.47
0.47
11,032.71
1,745.66
14,112.95
11,032.71
1,746.13
14,113.42
11,097.50
1,746.13
14,178.21
# Other than investment in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27.
Note: Certain unquoted equity instruments are not held for trading, instead they are held for medium or long-term
strategic purpose. Upon the application of Ind AS 109, the Company has chosen to designate these investments in
equity instruments as at FVTOCI as the directors believe this provides a more meaningful presentation for medium
and long-term strategic investments, than reflecting changes in fair value immediately in profit or loss.
1.2
Fair Value Hierarchy:
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:
Level 1 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes quoted equity
instruments, government securities, traded debentures (borrowings) and mutual funds that have quoted price.
Level 2 Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices). This includes derivative financial instruments and investment in
redeemable non-cumulative preference shares.
Level 3 Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part
using a valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data. This includes unquoted equity
shares.
344 I Standalone Financials
The Tata Power Company Limited
41. Financial Instruments (Contd.)
Notes to the Financial Statements
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets
that are not measured at fair value on a recurring basis (but fair value disclosures are required) :
Fair value hierarchy as at 31st March, 2017
Level 1
Level 3
Level 2
` crore
Total
Financial Assets:
Government securities ..........................................................................
Equity Shares #
Quoted ...............................................................................................
Unquoted ..........................................................................................
Total .............................................................................................................
Financial Liabilities:
Debentures ................................................................................................
Derivative financial liabilities ..............................................................
Total .............................................................................................................
397.84
11.88
Nil
409.72
8,780.30
Nil
8,780.30
Nil
Nil
NIl
Nil
Nil
49.91
49.91
Nil
397.84
Nil
786.00
786.00
Nil
NIl
Nil
11.88
786.00
1,195.72
8,780.30
49.91
8,830.21
Fair value hierarchy as at 31st March, 2016
Level 1
Level 2
Level 3
Financial Assets:
Government securities ..........................................................................
Other Debt Instruments........................................................................
Equity Shares #
Quoted ...............................................................................................
Unquoted ..........................................................................................
Derivative financial assets ....................................................................
Total .............................................................................................................
Financial Liabilities:
Debentures ................................................................................................
Derivative financial liabilities ..............................................................
Total .............................................................................................................
Financial Assets:
Government securities ..........................................................................
Other Debt Instruments........................................................................
Equity Shares #
Quoted ...............................................................................................
Unquoted ..........................................................................................
Derivative financial assets ....................................................................
Total .............................................................................................................
Financial Liabilities:
Debentures ................................................................................................
Derivative financial liabilities ..............................................................
Total .............................................................................................................
378.68
Nil
99.00
Nil
Nil
477.68
5,143.94
Nil
5,143.94
Nil
258.27
Nil
Nil
12.17
270.44
Nil
9.54
9.54
Nil
Nil
Nil
1,008.50
Nil
1,008.50
Nil
Nil
Nil
Fair value hierarchy as at 1st April, 2015
Level 1
Level 2
Level 3
357.14
42.02
116.18
Nil
Nil
515.34
4,910.16
Nil
4,910.16
Nil
243.65
Nil
Nil
15.90
259.55
Nil
0.47
0.47
Nil
Nil
Nil
1,237.67
Nil
1,237.67
Nil
Nil
Nil
Total
378.68
258.27
99.00
1,008.50
12.17
1,756.62
5,143.94
9.54
5,153.48
Total
357.14
285.67
116.18
1,237.67
15.90
2,012.56
4,910.16
0.47
4,910.63
# Other than investment in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27.
Valuation technique(s) and key input(s):
Level 1 The fair value of mutual funds, government securities, quoted equity shares and debentures is based on quoted price.
Level 2 Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets
or inputs that are directly or indirectly observable in the marketplace. The fair value of redeemable non-cumulative
preference shares is based on discounted cash flow at a discount rate that reflects the current investment rate at the
end of reporting period.
Standalone Financials I 345
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
41. Financial Instruments (Contd.)
Notes to the Financial Statements
Level 3 The fair value of unquoted equity shares is determined using income approach (discounted cash flow), market
observable price method, option pricing model, etc.
In case of investment in TTSL shares, in the absence of updated information as stated in Note 34(b), the fair value has
been determined based on third party valuation report obtained from TTSL as at 30th September, 2016.
The cost of certain unquoted investments approximate their fair value because there is a range of possible fair value
measurements and the cost represents the best estimate of fair value within that range.
1.3
Reconciliation of level 3 fair value measurements
For the year ended 31st March, 2017
Opening balance ..................................................................................................................................................................
Total Loss in other comprehensive income ..................................................................................................................
Held for Sale/Disposals/Settlements ...............................................................................................................................
Closing balance ....................................................................................................................................................................
For the year ended 31st March, 2016
Opening balance ..................................................................................................................................................................
Total Loss in other comprehensive income ..................................................................................................................
Held for Sale/Disposals/Settlements ...............................................................................................................................
Closing balance ....................................................................................................................................................................
` crore
Unlisted shares
irrevocably
designated as at
FVTOCI
1,008.50
(124.46)
(98.04)
786.00
` crore
Unlisted shares
irrevocably
designated as at
FVTOCI
1,237.67
(229.17)
Nil
1,008.50
All gains and losses included in other comprehensive income relate to unlisted shares held at the end of the reporting period
and are reported under “Equity Instruments through Other Comprehensive Income”.
2.
Capital Management & Gearing Ratio
The Company’s capital management is intended to create value for shareholders by facilitating the meeting of its long-term
and short-term goals. Its Capital structure consists of net debt (borrowings as detailed in notes below) and total equity.
Gearing ratio
The gearing ratio at the end of the reporting period was as follows:
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
Debt (i) .................................................................................................
16,503.65
11,229.18
11,032.71
Cash and Bank balances (including cash and bank
balances in a disposal group held for sale) ..............................
Net debt ...............................................................................................
Total Equity (ii) ..................................................................................
Net debt to equity ratio (%) ...........................................................
156.07
16,347.58
16,548.56
98.79
45.89
11,183.29
16,850.46
66.37
279.27
10,753.44
16,228.64
66.26
(i) Debt is defined as long-term borrowings (including current maturities) and short-term borrowings (excluding derivative,
financial guarantee contracts and contingent considerations).
(ii) Equity is defined as Equity share capital, Unsecured perpetual securities and other equity including reserves and surplus.
346 I Standalone Financials
The Tata Power Company Limited
41. Financial Instruments (Contd.)
3.
Financial risk management
Notes to the Financial Statements
In its ordinary operations, the Company’s activities expose it to the various types of risks, which are associated with the
financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign
exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The
risk management policy is approved by the Board of Directors. The following is the summary of the main risks:
3.1 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest
rate risk), will affect the company’s income or value of its holding of financial instruments. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
3.1.1 Foreign currency risk management
The Company is exposed to foreign exchange risk through its operations in international projects and purchase of coal from
Indonesia and elsewhere and overseas borrowings. The results of the Company’s operations can be affected as the rupee
appreciates/depreciates against these currencies. The Company enters into derivative financial instruments such as foreign
exchange forward and option contracts to mitigate the risk of changes in exchange rates on foreign currency exposures.
The following table analyses foreign currency assets and liabilities on balance sheet dates:
Foreign Currency
Liabilities
Foreign
Currency
(in millions)
` crore
Foreign
Currency
in millions)
` crore
Foreign
Currency
(in millions)
` crore
31st March, 2017
31st March, 2016
1st April, 2015
In USD ..............................................................
261.14
1,693.48
196.34
1,300.65
174.20
1,088.69
In EURO ...........................................................
In GBP ..............................................................
In JPY ................................................................
In SGD ..............................................................
7.05
3.29
15.38
0.01
48.84
29.18
0.89
0.05
13.24
8.13
8.21
0.01
99.81
77.61
0.48
0.05
12.14
9.24
107.06
Nil
81.57
85.45
5.58
Nil
Foreign Currency
Assets
Foreign
Currency
(in millions)
` crore
Foreign
Currency
(in millions)
` crore
Foreign
Currency
(in millions)
` crore
31st March, 2017
31st March, 2016
1st April, 2015
In USD ..............................................................
In ZAR ..............................................................
In SGD ..............................................................
In VND ..............................................................
In TAKA ............................................................
* Denotes figures below ` 50,000/-
8.88
0.21
0.03
77.48
0.21
57.61
0.10
0.15
0.01
0.02
8.36
0.72
Nil
11.24
0.21
55.39
0.32
Nil
*
0.02
14.93
93.31
Nil
Nil
Nil
Nil
Nil
Nil
0.22
0.02
Standalone Financials I 347
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
41. Financial Instruments (Contd.)
(a) Foreign currency sensitivity analysis
Notes to the Financial Statements
For the year ended 31st March, 2017 and 31st March, 2016, the impact of every rupee 1 depreciation / appreciation in the
exchange rate between the Indian Rupee and US Dollar on Profit before tax of the Company, given in below table:
Rupee
depreciate by
INR 1 against
USD
(+) ` 24.88 crore
As at 31st March, 2017
Rupee
appreciate by
INR 1 against
USD
(-) ` 24.88 crore
Rupee
depreciate by
INR 1 against
USD
(+) ` 12.05 crore
As at 31st March, 2016
Rupee
appreciate by
INR 1 against
USD
(-) ` 11.86 crore
(-) ` 25.23 crore
(+) ` 25.23 crore
(-) ` 18.80 crore
(+) ` 18.80 crore
On Forward and Option Contracts .................
On Foreign Currency Liability (net) (Refer
Note 2 below) ........................................................
Notes:
1) +/- Gain/Loss
2) The impact of depreciation/appreciation on foreign currency other than US Dollar on profit before tax of the
Company is not material.
(b) Derivative financial instruments
The Company holds derivative financial instruments such as foreign currency forward and option contracts to mitigate the
risk of changes in exchange rate on foreign currency exposure. The counterparty for these contracts is generally a Bank
or a Financial Institution. These derivative financial instruments are valued based on quoted prices for similar asset and
liabilities in active markets or inputs that is directly or indirectly observable in the marketplace.
The following table gives details in respect of outstanding foreign exchange forward and option contracts:
Outstanding Contracts
31st March, 2017
Other Derivatives
Forward contracts
Buy/Sell
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair value in
` crore
In USD .......................................................................................................
In EURO .....................................................................................................
In GBP ........................................................................................................
Buy
Buy
Buy
Option contracts
In USD .......................................................................................................
242.13
6.81
3.25
Nil
1,570.19
47.18
26.27
(48.41)
(1.10)
(0.40)
Nil
Nil
Outstanding Contracts
Other Derivatives
Forward contracts
31st March, 2016
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair value in
` crore
In USD .......................................................................................................
In EURO .....................................................................................................
In GBP ........................................................................................................
Buy
Buy
Buy
Option contracts
In USD .......................................................................................................
Buy
65.58
12.43
8.06
118.73
434.45
93.69
76.94
786.53
(9.32)
2.07
(2.29)
12.17
Outstanding Contracts
Other Derivatives
Forward contracts
1st April, 2015
Foreign Currency
(in millions)
Nominal Value in
` crore
Fair value in
` crore
In USD .......................................................................................................
In EURO .....................................................................................................
In GBP ........................................................................................................
Buy
Buy
Buy
Option contract
In USD .......................................................................................................
Buy
79.22
11.02
6.57
75.40
495.08
74.07
60.74
471.20
3.56
(2.77)
(1.26)
15.90
348 I Standalone Financials
The Tata Power Company Limited
Notes to the Financial Statements
41. Financial Instruments (Contd.)
3.1.2
Interest rate risk management
Interest rate risk arises from the potential changes in interest rates that may have adverse effects on the Company in the
reporting period or in future years.
Interest rate sensitivity:
The sensitivity analysis below have been determined based on exposure to interest rates for term loans and debentures at the
end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant
throughout the reporting period in case of term loans and debentures that have floating rates.
If the interest rates had been 50 basis points higher or lower and all the other variables were held constant, the effect on
Interest expense for the respective financial years and consequent effect on Company’s profit in that financial year would have
been as below:
Interest expense on loan ...................................
Effect on profit before tax .................................
3.2
Credit risk management
As at 31st March, 2017
As at 31st March, 2016
50 bps increase
(+) ` 20.88 crore
(-) ` 20.88 crore
50 bps decrease
(-) ` 20.88 crore
(+) ` 20.88 crore
50 bps increase
(+) ` 14.32 crore
(-) ` 14.32 crore
50 bps decrease
(-) ` 14.32 crore
(+) ` 14.32 crore
The Company takes on exposure to credit risk, which is the risk that counterparty will default on its contractual obligations
resulting in financial loss to the company. Financial assets that potentially expose the Company to credit risks are listed below:
Trade receivables .................................................................................
Loan ..........................................................................................................
Finance lease receivables ..................................................................
Other financial assets ..........................................................................
Total ..........................................................................................................
31st March, 2017
` crore
1,420.02
22.82
612.63
1,196.81
3,252.28
31st March, 2016
` crore
1,242.99
3,750.45
666.43
1,218.32
6,878.19
1st April, 2015
` crore
1,745.14
2,907.14
703.60
1,610.30
6,966.18
Refer Note No. 7.1 credit risk and other information in respect of trade receivables. Other receivables as stated above are due
from the parties under normal course of the business and as such the Company believes exposure to credit risk to be minimal.
3.3
Liquidity risk management
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by
continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
The maturity profile of the financial assets are listed below:
Expected contractual maturity for Financial Liabilities
Up to 1 year
1 to 5 years
5 + years
Total
` crore
Carrying
Amount
31st March, 2017
Non-Derivatives
Borrowings # ...........................................................
Trade Payables ........................................................
Other Financial Liabilities ...................................
8,901.29
1,344.68
921.73
6,551.00
13,422.97
28,875.26
16,900.52
35.57
31.98
Nil
Nil
1,380.25
953.71
1,380.25
953.71
Total Non-Derivative Liabilities ...................
11,167.70
6,618.55
13,422.97
31,209.22
19,234.48
Derivatives
Other Financial Liabilities ...................................
Total Derivative Liabilities ..............................
49.91
49.91
Nil
Nil
Nil
Nil
49.91
49.91
49.91
49.91
Standalone Financials I 349
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
41. Financial Instruments (Contd.)
Notes to the Financial Statements
31st March, 2016
Non-Derivatives
Borrowings # ...........................................................
Trade Payables ........................................................
Other Financial Liabilities ...................................
Total Non-Derivative Liabilities ...................
Derivatives
Other Financial Liabilities ...................................
Total Derivative Liabilities ..............................
1st April, 2015
Non-Derivatives
Borrowings # ...........................................................
Trade Payables ........................................................
Other Financial Liabilities ...................................
Total Non-Derivative Liabilities ...................
Derivatives
Other Financial Liabilities ...................................
Total Derivative Liabilities ..............................
Up to 1 year
1 to 5 years
5 + years
Total
Carrying
Amount
3,167.02
1,263.26
892.07
5,322.35
9.54
9.54
3,170.13
1,304.66
1,490.67
5,965.46
0.47
0.47
7,428.32
33.12
33.59
7,495.03
12,841.70
Nil
Nil
12,841.70
23,437.04
1,296.38
925.66
25,659.08
11,455.89
1,296.38
925.66
13,677.93
Nil
NIl
NIl
NIl
9.54
9.54
9.54
9.54
7,962.90
29.92
32.33
8,025.15
12,357.18
NIl
NIl
12,357.18
23,490.21
1,334.58
1,523.00
26,347.79
11,255.37
1,334.58
1,523.00
14,112.95
NIl
NIl
NIl
NIl
0.47
0.47
0.47
0.47
# The table has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest
that will be paid on those liabilities upto the maturity of the instruments, ignoring the call and refinancing options available
with the Company. The amounts included above for variable interest rate instruments for non-derivative liabilities is subject
to change if changes in variable interest rates differ to those estimates of interest rates determined at the end of the reporting
period.
The amounts included in Note 37(c)(i) for financial guarantee contracts are the maximum amounts the Company could be
forced to settle under respective arrangements for the full guaranteed amount if that amount is claimed by the counterparty
to the guarantee. Based on expectations at the end of the reporting period, the Company considers that it is more likely than
not that such an amount will not be payable under the arrangement. However, this estimate is subject to change depending
on the probability of the counterparty claiming under the guarantee which is a function of the likelihood that the financial
receivables held by the counterparty which are guaranteed suffer credit losses.
The Company has access to financing facilities as described in Note No. 3.4 below. The Company expects to meet its obligations
from operating cash flows and proceeds of maturing financial assets.
3.4
Financing facilities
Unsecured bank overdraft, reviewed annually and
payable at call:
Amount used ............................................................................
Amount unused ......................................................................
Secured bank overdraft facility :
Amount used ............................................................................
Amount unused ......................................................................
Secured bank loan facilities with various maturity
dates through to 31st March, 2018 and which may be
extended by mutual agreement:
31st March, 2017
` crore
31st March, 2016
` crore
1st April, 2015
` crore
0.32
2,304.68
Nil
250.00
148.93
2,466.07
Nil
250.00
Nil
2,425.00
Nil
650.00
Amount used ............................................................................
Amount unused ......................................................................
4,833.00
1,147.00
4,437.00
360.00
4,516.76
221.24
350 I Standalone Financials
The Tata Power Company Limited 42. Related Party Disclosures:
Notes to the Financial Statements
Disclosure as required by Ind AS 24 - “Related Party Disclosures” are as follows:
Names of the related parties and description of relationship:
(a)
Related parties where control exists:
(i)
Subsidiaries
Indo Rama Renewables Jath Ltd ** (IRRJL)
Tata Power Delhi Distribution Ltd. (TPDDL)
Coastal Gujarat Power Ltd. (CGPL)
Industrial Power Utility Ltd. (IPUL)
Tata Power Renewable Energy Ltd. (TPREL)
Af-Taab Investment Co. Ltd. (AICL)
1)
Chemical Terminal Trombay Ltd. (CTTL)
2)
Tata Power Trading Co. Ltd. (TPTCL)
3)
4)
NELCO Ltd. (NELCO)
5) Maithon Power Ltd. (MPL)
6)
7)
8)
9)
10) Tata Power Solar Systems Ltd. (TPSSL)
11) Tata Power Jamshedpur Distribution Ltd. (TPJDL)
12) Tata Power International Pte. Ltd. (TPIPL)
13) Tata Ceramics Ltd. (TCL) (w.e.f. 28th May, 2015)
14) Bhira Investments Ltd. (BIL)
15) Bhivpuri Investments Ltd. (BHIL)
16) Khopoli Investments Ltd. (KIL)
17) Trust Energy Resources Pte. Ltd. (TERL)
18)
19) Energy Eastern Pte. Ltd. ** (EEL)
20) Tatanet Services Ltd.** (TNSL)
21) PT Sumber Energi Andalan Tbk. ** (SEA)
22) Tata Power Green Energy Ltd. ** (TPGEL)
23) NDPL Infra Ltd. ** (NDPLIL)
24) Supa Windfarm Ltd. ** (SWL) (w.e.f. 10th December, 2015)
25) Poolavadi Windfarm Ltd. ** (PWL) (w.e.f. 9th January, 2016)
26) Nivade Windfarm Ltd. ** (NWL) (w.e.f. 17th December, 2015)
27) Welspun Renewables Energy Private Ltd. ** (WREPL)
28) Clean Sustainable Solar Energy Private Ltd. ** (CSSEPL)
29) Dreisatz Mysolar24 Private Ltd. ** (DMPL)
30) MI Mysolar24 Private Ltd. ** (MMPL)
31) Northwest Energy Private Ltd. ** (NEPL)
32) Solarsys Energy Private Ltd. ** (SEPL)
33) Solarsys Renewable Energy Private Ltd. ** (SREPL)
34) Unity Power Private Ltd. ** (UUPL)
35) Viraj Renewables Energy Private Ltd. ** (VREPL)
36) Welspun Energy Jharkhand Private Ltd. ** (WEJPL)
37) Welspun Energy Maharashtra Private Ltd. ** (WEMPL)
38) Welspun Energy Rajasthan Private Ltd. ** (WERPL)
39) Welspun Solar AP Private Ltd. ** (WSAPL)
40) Welspun Solar Kannada Private Ltd. ** (WSKPL)
41) Welspun Solar Madhya Pradesh Private Ltd. ** (WSMPPL)
42) Welspun Solar Punjab Private Ltd. ** (WSPPL)
43) Welspun Solar Rajasthan Private Ltd. ** (WSRPL)
44) Welspun Solar Tech Private Ltd. ** (WSTPL)
45) Welspun Solar UP Private Ltd. ** (WSUPL)
46) Welspun Urja Gujarat Private Ltd. ** (WUGPL)
47) Chirasthayee Saurya Ltd. ** (CSL)
48) Nelco Network Products Ltd. ** (NNPL)
49) Vagarai Windfarm Ltd. ** (VWL)
50) Welspun Urja India Ltd. ** (WUIL)
** Through Subsidiary Companies
Standalone Financials I 351
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
42. Related Party Disclosures (Contd.):
(ii)
Employment Benefit Funds
(b) Other related parties (where transactions
have taken place during the year and
previous year / balances outstanding) :
(i)
Associates
(ii)
Joint Venture Companies
1)
2)
3)
Tata Power Superannuation Fund
Tata Power Gratuity Fund
Tata Power Consolidated Provident Fund
Tata Projects Ltd. (TPL)
Yashmun Engineers Ltd. (YEL)
Dagacchu Hydro Power Corporation Limited
Tata Communications Limited
Cennergi Pty. Ltd. ** (CPL)
1)
2)
3)
4)
1)
2) Mandakini Coal Company Ltd. (MCCL)
3)
4)
5)
6)
7)
8)
9)
Tubed Coal Mines Ltd. (TCML)
Itezhi Tezhi Power Corporation (ITPC) (w.e.f. 29th April, 2015)
Adjaristsqali Georgia LLC ** (AGL)
LTH Milcom Private Limited
Powerlinks Transmission Ltd. (PTL)
Industrial Energy Ltd. (IEL)
Dugar Hydro Power Ltd. (DHPL)
** Joint Ventures of Subsidiaries
(c)
(i)
(ii)
Promoters holding together with its
Subsidiary more than 20%
Subsidiaries and Jointly Controlled
E n t i t i e s o f P r o m o t e r s ( w h e r e
transactions have taken place during
the year and previous year / balances
outstanding) :
Tata Sons Ltd.
1)
2)
Drive India Enterprise Solutions Limited (ceased w.e.f. 01.09.2015)
e-Nxt Financials Limited (merged with Tata Business Support Services
Limited, the Appointed date i.e. 01.04.2014, Effective date: 01.07.2015)
Ewart Investments Limited
Infiniti Retail Limited
Tata Africa Holdings (SA) (Proprietary) Limited
Tata AG, Zug
Tata AIG General Insurance Company Limited
Tata Business Support Services Limited
Tata Capital Limited
3)
4)
5)
6)
7)
8)
9)
10) Tata Consultancy Services Limited
11) Tata Consulting Engineers Limited
12) Tata Housing Development Company Limited
13) Tata Industries Limited
14) Tata Interactive Systems AG
15) Tata Investment Corporation Limited
16) Tata Realty and Infrastructure Limited
17) Tata Teleservices (Maharashtra) Limited (w.e.f. 02.02.2017)
18) Tata Teleservices Limited (ceased to be an associate and is a subsidiary
w.e.f. 02.02.2017)
19) TC Travel and Services Limited
20) THDC Management Services Limited (formerly THDC Facility Management
Limited)
Anil Sardana - CEO & Managing Director
Ashok Sethi - COO & Executive Director
Ramesh Subramanyam - Chief Financial Officer
1)
2)
3)
(d) Key Management Personnel
352 I Standalone Financials
The Tata Power Company Limited 42. Related Party Disclosures (Contd.):
(e) Details of Transactions:
Notes to the Financial Statements
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoters
Promoter
Group
` crore
Purchase of goods/power (Net of
Discount Received on Prompt Payment) ...
Sale of goods/power (Net of Discount on
Prompt Payment) ...............................................
Purchase of fixed assets ..................................
Rendering of services ......................................
Receiving of services ........................................
Brand equity contribution .............................
Contribution to Employee Benefit Plans ..
Guarantee, collaterals etc. given ..................
Guarantee, collaterals etc. cancelled ..........
Remuneration paid ...........................................
Interest income ..................................................
Interest paid ........................................................
Dividend received .............................................
Dividend paid .....................................................
Guarantee commission earned ....................
Loans given ..........................................................
Equity contribution (includes advance
towards equity contribution and
perpetual bonds) @ ..........................................
Loans provided for as doubtful advances
(including interest) ............................................
73.73
75.60
150.47
190.74
0.97
-
110.75
90.33
1.34
1.94
-
-
-
-
7,740.20 $
6,553.30 $
2,579.13 $
9,566.22 $
-
-
223.19
399.45
-
-
519.23
204.30
-
-
23.65
41.44
187.13
1,177.26
4,800.80
193.34
0.01
1.24
-
-
-
-
31.84
40.59
2.67
8.44
2.78
0.14
13.43
17.69
-
-
-
-
-
-
-
-
-
-
-
-
0.17
0.09
12.43
12.24
-
-
-
-
-
-
-
-
-
-
-
0.09
-
-
24.86
52.43
-
0.05
-
-
-
-
-
-
50.05 $
283.16 $
-
-
0.44
0.84
-
-
114.50
93.07
-
-
1.23
1.31
0.02
49.88
0.15
33.06
0.02
54.16
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
13.89 *
11.30 *
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57.99
31.66
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.03
0.44
36.43
51.24
7.70
7.39
1.28
1.24
45.22
36.13
-
-
-
-
-
-
-
-
-
-
-
-
14.93
14.82
-
0.05
1.85
4.18
-
-
-
-
-
-
-
-
-
-
-
-
6.77
-
0.39
0.52
0.40
0.37
18.30
21.63
-
-
-
-
-
-
-
-
-
-
-
-
-
16.02
109.17
106.84
-
-
-
-
-
-
-
-
Standalone Financials I 353
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
42. Related Party Disclosures (Contd.):
(e) Details of Transactions: (Contd.)
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoters
Promoter
Group
Loans repaid (including loan converted
into equity) ..........................................................
Deposits taken ....................................................
Deposits refunded ............................................
Purchase of Investments .................................
Liability written back ........................................
Purchase of Business ........................................
Balances outstanding
Perpetual Securities Outsanding
including Interest .............................................. 2017
2016
2015
Other receivables .............................................. 2017
2016
2015
Loans (including interest thereon) .............. 2017
2016
2015
Loans provided for as doubtful advances
(including interest thereon) .......................... 2017
2016
2015
Deposits taken outstanding .......................... 2017
2016
2015
Security deposits given ................................... 2017
2016
2015
Preference Shares Outstanding including
interest .................................................................. 2017
2016
2015
Advance towards equity ................................. 2017
2016
2015
356.62
317.85
-
-
13.25
39.86
-
-
-
-
32.93
-
-
-
13.35
-
-
-
-
71.64
51.31
48.03
1.25
4,027.95
3,204.39
1.25
1.24
-
-
-
-
-
-
-
285.60
578.01
594.75
168.00
-
-
0.81
-
-
0.04
-
-
-
-
-
-
-
-
-
4.44
2.75
7.80
1.27
1.27
1.27
1.27
1.27
1.27
1.53
0.72
0.74
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9.58
39.26
4.20
71.01
83.23
44.35
54.18
54.16
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.11
1.86
0.74
0.07
-
312.29
0.10
-
-
-
136.17
136.21
136.17
3.83
5.21
4.56
-
-
-
-
-
-
1.33
1.99
0.15
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.50
-
-
-
-
-
-
354 I Standalone Financials
The Tata Power Company Limited
Notes to the Financial Statements
42. Related Party Disclosures (Contd.):
(e) Details of Transactions: (Contd.)
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Fund
Promoters
Promoter
Group
Dividend receivable .......................................... 2017
2016
2015
92.23
-
75.00
Guarantees, collaterals etc. outstanding .. 2017
2016
2015
13,854.55
8,881.05
11,304.75
Letter of comfort outstanding ...................... 2017
2016
2015
Other payables ................................................... 2017
2016
2015
-
-
-
10.61
7.62
7.42
-
-
-
-
-
-
-
-
-
4.09
3.92
2.07
-
-
-
31.62
78.34
384.22
77.47
71.54
83.03
2.02
0.02
-
Notes:
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15.67
34.59
26.74
5.97
1.21
1.22
22.07
25.47
23.96
@ During the year, Loan and Interest accrued thereon given to Coastal Gujarat Power Limited and Tata Power Renewable
Energy Limited amounting to ` 3,855.89 crore (Previous period - ` Nil) has been converted into Investment in Perpetual
Securities and Investment in Equity.
$
Includes guarantees given and cancelled in foreign currency, converted in Indian currency by applying average exchange
rates.
* Key Managerial Personnel are entitled to post-employment benefits and other long term employee benefits recognised
as per Ind AS 19 - ‘Employee Benefits’ in the financial statements. As these employee benefits are lump sum amounts
provided on the basis of actuarial valuation, the same is not included above.
Previous year’s figures are in italics.
Standalone Financials I 355
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Notes to the Financial Statements
43. Disclosure under Regulation 34(3) of Securities and Exchange Board of India (SEBI) (Listing Obligations and Disclosure
Requirements) Regulations, 2015
Loans and advances (excluding advance towards equity) in the nature of loans given to Subsidiaries, Joint Ventures and
Associates:
Name of the Company
Relationship
Tata Power Renewable Energy Ltd. .......................................................
Subsidiary
Coastal Gujarat Power Ltd. .......................................................................
Subsidiary
Industrial Energy Ltd. .................................................................................
Joint Venture
Maithon Power Ltd. ....................................................................................
Subsidiary
Tata Power Jamshedpur Distribution Ltd $ ........................................
Subsidiary
NELCO Ltd ......................................................................................................
Subsidiary
Mandakini Coal Company Ltd. $ ............................................................
Joint Venture
Itezhi Tezhi Power Corporation ..............................................................
Joint Venture
Nelito Systems Ltd. $ .................................................................................. Associate
Amount
Outstanding
as at the
year-end **
` crore
Nil
106.00
Nil
3,484.30
Nil
Nil
Nil
123.50
0.01
Nil
Nil
Nil
54.18
54.16
15.48
29.05
1.27
1.27
Maximum
Amount
Outstanding
during the
year**
` crore
182.00
106.00
3,544.30
3,734.30
Nil
39.86
123.50
123.50
0.01
7.92
Nil
5.00
54.18
54.16
29.05
29.05
1.27
1.27
Investments
in Company’s
Shares
(Nos.)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Notes:
** Excluding interest accrued.
$ Provided for.
Previous year’s figures are in italics.
44. Segment Reporting:
Information reported to the Chief Operating Decisions Maker (CODM) for the purpose of resource allocation and assessment
of segment performance focus on business segment which comprises of Power and Others.
Specifically, the Company’s reportable segments under Ind AS are as follows:
Power: Comprises of Generation, Transmission, Distribution and assets relating to Power Business given on Finance Lease
Others: Comprises of Defence Electronics and Engineering, Project Contracts/Infrastructure Management Services and
Property Development
Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are
not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and
manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable
expenses.
Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All
other assets and liabilities are disclosed as unallocable.
356 I Standalone Financials
The Tata Power Company Limited
44. Segment Reporting (Contd.)
Notes to the Financial Statements
Power
Others
Elimi-
nations
REVENUE
External Revenue .................................................................................
RESULT
Total Segment Results ........................................................................
Finance Costs ........................................................................................
Exceptional Item - Unallocable .......................................................
Unallocable Income net of Unallocable Expense ....................
Income Taxes .........................................................................................
Profit After Tax ...........................................................................................
OTHER INFORMATION
Segment Assets ....................................................................................
Unallocable Assets ..............................................................................
Total Assets
Segment Liabilities ..............................................................................
Unallocable Liabilities ........................................................................
Total Liabilities ...........................................................................................
Capital Expenditure ............................................................................
Non-cash Expenses other than Depreciation/Amortisation
(to the extent allocable to segment) ............................................
Depreciation/Amortisation (to the extent allocable to segment) ....
6,574.35
7,589.43
1,595.56
2,066.54
707.71
726.10
97.59
81.54
14,168.67
14,740.20
2,323.33
1,643.23
4,338.25
4,128.00
547.35
628.39
9,830.42
10,612.20
610.46
773.21
1,775.98
1,014.84
272.39
236.06
18.59
20.42
600.82
578.13
17.77
3.99
33.39
26.33
-
-
-
-
-
-
-
-
-
-
-
-
-
-
` crore
Total
7,282.06
8,315.53
1,693.15
2,148.08
(1,295.68)
(1,146.12)
(651.45)
-
760.11
732.33
(222.68)
(379.30)
283.45
1,354.99
16,492.00
16,383.43
23,376.67
18,231.19
39,868.67
34,614.62
4,885.60
4,756.39
18,434.51
13,007.77
23,320.11
17,764.16
882.85
1,009.27
36.36
24.41
634.21
604.46
` crore
Reconciliation of Revenue
Revenue from Operations (Net) .......................................................................................................................
Add/(Less): Regulatory income/(expense) (net) .........................................................................................
Add/(Less): Regulatory income (net) in respect of earlier years ...........................................................
Total Segment Revenue as reported above.................................................................................................
Note: Previous year’s figures are in italics.
31st March,
2017
7,218.06
(13.00)
77.00
7,282.06
31st March,
2016
8,696.94
(438.00)
56.59
8,315.53
Standalone Financials I 357
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE 45. Earnings Per Share
Basic earning per share
Notes to the Financial Statements
31st March, 2017
31st March, 2016
Profit for the year (` crore) .............................................................................................................
Less: Distribution on Unsecured Perpetual Securities (Net of Tax) (` crore) ................
Net profit for the year attributable to the equity shareholders (` crore) .....................
283.45
111.82
171.63
1,354.99
111.82
1,243.17
The weighted average number of equity shares for basic earnings per share (Nos.) ..
270,76,05,570
270,76,05,570
Par value per share (in `) ................................................................................................................
Basic earnings per share (in `) .....................................................................................................
Diluted earning per share ..........................................................................................................
1.00
0.63
0.63
1.00
4.59
4.59
Note: The Company did not have any potentially dilutive securities in any of the period presented.
46. Disclosure in terms of G.S.R.307(E) dated 30th March, 2017 issued by the Ministry of Corporate Affairs, Government of
India
The details of Specified Bank Notes (SBN) held and transacted during the period 8th November, 2016 to 30th December, 2016,
the denomination wiss SBNs and other notes as per the notification is given below:
Specified
Bank
notes
` crore
Other
denomination
notes
` crore
Closing cash in hand as at 8th November, 2016 ......................
Add: Permitted receipts ..................................................................
Less: Permitted payments ..............................................................
Less: Amount deposited in Banks ................................................
Closing cash in hand as at 30th December, 2016 ....................
Nil
35.88
Nil
35.88
Nil
Nil
15.33
Nil
15.33
Nil
Total
` crore
Nil
51.21
Nil
51.21
Nil
During the period from 10th November, 2016 to 15th December, 2016, the Company was allowed to receive SBNs as a legal
tender from its customers towards payment of their electricity dues. The Company has designated collection centres, which
are permitted to receive cash from its customers. Cash collected at these centres is directly deposited into Company’s Bank
accounts. The Company has received details of SBNs deposited from respective banks, and has considered amount collected
as equivalent to amount deposited.
358 I Standalone Financials
The Tata Power Company Limited
47. Explanation of Transition to Ind AS and effect of Ind AS adoption
47.1 First-time adoption-mandatory exceptions, optional exemptions
Notes to the Financial Statements
a. Overall principle
The Company has prepared the opening balance sheet as per Ind AS as of 1st April, 2015 (the transition date) by recognising
all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not
permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS
in measurement of recognised assets and liabilities. However, this principle is subject to certain exceptions and certain
optional exemptions availed by the Company as detailed below.
b. Derecognition of financial assets and liabilities
The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for
transactions occurring on or after 1st April, 2015 (the transition date).
c. Classification of debt instruments
The Company has determined the classification of debt instruments in terms of whether they meet the amortised cost
criteria or the FVTOCI criteria based on the facts and circumstances that existed as of the transition date.
d. Deemed cost for PPE, investment property and intangible assets
The Company has elected to restate retrospectively generally all its property, plant and equipment and intangible assets
as per the Ind AS 16 on transition date (as at 1st April, 2015).
e. Determining whether an arrangement contains a lease
The Company has applied Appendix C of Ind AS 17 “Determining whether an Arrangement contains a Lease” to determine
whether an arrangement existing at the transition date contains a lease on the basis of facts and circumstances existing
as of the transition date.
f.
Equity investments at FVTOCI
The Company has designated investment in equity shares of its non-current investments as FVTOCI on the basis of facts
and circumstances that existed at the transition date.
g.
Investments in subsidiaries, joint ventures and associates
The Company has elected to adopt the carrying value under previous GAAP as on the date of transition i.e.
1st April, 2015 in its separate financial statements and use that carrying values as its deemed cost as of the transition date.
47.2 Reconciliation of Total Equity as at 31st March, 2016 and 1st April, 2015.
Equity as reported under previous GAAP ................................................................
Arrangements accounted as finance lease ...................................................................
Decapitalisation of foreign exchange losses under Ind AS .....................................
Effect of measuring Fair value of investments .............................................................
Changes in fair value of derivative contracts ...............................................................
Impact of redeemable preference shares accounted as financial asset .............
Recognition of finance income on interest free loans and guarantees given to
subsidiaries ...............................................................................................................................
Increase in borrowing cost pursuant to application of effective interest rate .
Others .........................................................................................................................................
Tax on above adjustments ..................................................................................................
Distribution on perpetual securities including tax thereon ...................................
Dividend including tax thereon ........................................................................................
Equity under Ind AS ............................................................................................................
Notes
(c)
(f )
(a), (b)
(d)
(g)
(g)
(i)
(h)
(e)
As at 31st
March, 2016
` crore
16,231.96
80.88
(171.24)
108.93
16.36
83.76
413.43
17.11
1.14
(379.07)
47.28
399.92
16,850.46
As at 1st
April, 2015
` crore
15,966.62
130.22
(191.68)
128.83
7.15
58.48
67.33
21.13
Nil
(390.78)
47.01
384.33
16,228.64
Standalone Financials I 359
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
47. Explanation of Transition to Ind AS and effect of Ind AS adoption (Contd.)
47.3 Reconciliation of Total Comprehensive Income for the year ended 31st March, 2016.
Notes to the Financial Statements
Profit after tax reported under per previous GAAP .............................................................................
Adjustments :
Notes
As at 31st
March, 2016
` crore
771.62
Arrangements accounted as finance lease ....................................................................................................
Decapitalisation of foreign exchange losses under Ind AS ......................................................................
Changes in fair value of derivative contracts ................................................................................................
Impact of redeemable preference shares accounted as financial asset ..............................................
Recognition of finance income on interest free loans and guarantees given to subsidiaries .....
Transfer to contingency reserve fund through Profit and loss ...............................................................
Reclassifiction of actuarial gains/losses, arising in respect of employee benefit schemes, to
other comprehensive income ............................................................................................................................
Reclassifiction of fair value of investments through other comprehensive income ......................
(c)
(f )
(d)
(g)
(g)
(j)
(b)
Others ..........................................................................................................................................................................
(i), (a)
Tax on above adjustments ...................................................................................................................................
(h)
Total effect of transition to Ind AS ................................................................................................................
Profit for the year as per Ind AS ..........................................................................................................................
Other comprehensive income/(expense) for the year (net of tax) ........................................................
Total comprehensive income reported under Ind AS ................................................................................
47.4 Effect of Ind AS adoption on the Statement of Cash Flow for the year ended 31st March, 2016.
(49.34)
27.86
9.21
25.28
346.10
(21.00)
5.20
226.48
(4.58)
18.16
583.37
1,354.99
(258.00)
1,096.99
` crore
For the year ended 31st March, 2016
Net Cash flow from/(used in) operating activities ............................................
2,987.45
Net Cash flow from/(used in) investing activities .............................................
(1,667.69)
Net Cash flow from/(used in) financing activities .............................................
(1,551.78)
Net Increase/(Decrease) in cash and cash equivalents ...................................
(232.02)
Cash and Cash equivalents at the beginning of the period .........................
Cash and Cash equivalents at the end of the period ......................................
265.85
33.83
(40.20)
40.20
(148.93)
(148.93)
Nil
(148.93)
(115.10)
Previous
GAAP
Effect of
Transition to
Ind AS
Ind AS
2,947.25
(1,627.49)
(1,700.71)
(380.95)
265.85
Analysis of Cash and Cash Equivalents as at 31st March, 2016 and as at 1st April, 2015 for the purposes of
statement of cash flow under Ind AS
Cash and Cash equivalents for the purposes of statement of cash flow as per previous GAAP
Bank Overdrafts ...........................................................................................................................................
Cash and Cash equivalents for the purpose of statement of cash flow under Ind AS .......
As at 31st
March, 2016
` crore
33.83
(148.93)
(115.10)
As at 1st
April, 2015
` crore
265.85
Nil
265.85
360 I Standalone Financials
The Tata Power Company Limited
47. Explanation of Transition to Ind AS and effect of Ind AS adoption (Contd.)
47.5 Notes to reconciliations between Previous GAAP and Ind AS
Notes to the Financial Statements
(a) Under previous GAAP, current investments were stated at lower of cost and fair value. Under Ind AS these financial assets
have been classified as Fair Value through Profit and Loss (FVTPL) on the date of transition and fair value changes after the
date of transition have been recognised in statement of profit and loss.
(b) Under previous GAAP, non-current investments were stated at cost less provision for diminution in value of investment, if
any. Under Ind AS, financial assets in equity instruments have been classified as Fair Value through Other Comprehensive
Income (FVTOCI) through an irrevocable election at the date of transition.
(c) Under previous GAAP, finance lease arrangement is recorded based on the legal form. Whereas under Ind AS arrangement
that do not take the legal form of a lease but fulfilment of which is dependent on the use of specific assets and which
convey the right to use the assets are accounted for as lease.
(d) Under previous GAAP, the net mark-to market losses on derivative financial instruments, as at the Balance Sheet date,
were recognised in statement of profit and loss and the net gains, if any, were ignored. Under Ind AS, such derivative
financial instruments are to be recognised at fair value and the changes are recognised in statement of profit and loss.
(e) Under previous GAAP, dividend payable is recognised as a liability in the period to which it relates. Under Ind AS, dividend
to shareholders is recognised when declared by the members in annual general meeting.
(f) Under the previous GAAP the Company had adopted para 46 of AS-11 and capitalised exchange gain/loss. Whereas in Ind AS
the Company has adopted Ind AS cost for all its Fixed Assets, hence exchange gain/loss is recognised in opening reserve and
changes thereafter are recognised in statement of profit and loss or other comprehensive income, as the case may be.
(g) Under Ind AS the Company has recognised income on preference shares and Interest free loans given to subsidiaries.
(h) The deferred tax adjustments include the impact of transition adjustments together with Ind AS mandate of using balance
sheet approach against profit and loss approach in the previous GAAP. On the date of transition, deferred tax impact on
transition provision has been accounted in the Reserves, and consequential impact in the statement of profit and loss for
the subsequent periods.
(i) Under previous GAAP, loan processing fees/transaction cost were expensed when incurred, whereas under Ind AS, it is
considered for calculating effective interest rate and the impact for the periods subsequent to the date of transition is
accounted in the statement of profit and loss.
(j) Defined benefit plans - Under Ind AS, actuarial gains or losses arising on defined benefit plans are recognised in other
comprehensive income, whereas under previous GAAP same was being charged to the statement of profit and loss.
48.
49.
The Company is engaged in the business of providing infrastructural facilities as per Section 186 (ii) read with Schedule VI of
the Act. Accordingly, disclosure under Section 186 of the Act, is not applicable to the Company.
Significant Events after the Reporting Period
There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed
in the relevant notes.
50. Approval of Financial Statements
The financial statements were approved for issue by the Board of Directors on 19th May, 2017.
Standalone Financials I 361
98th Annual Report 2016-17NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONE
Performance Perspective (Standalone)
2007-08
14,717
5,916
4,979
937
498
1,435
174
291
-
970
100
870
39
105%
2008-09
14,807
7,236
6,095
1,141
632
1,773
328
329
-
1,117
195
922
44
115%
12%
13%
0.34
0.38
221
6,331
-
3,037
8,164
3,477
4,687
11%
14%
0.52
0.60
221
7,182
-
5,198
9,747
3,795
5,952
2009-10
15,946
7,098
5,220
1,879
282
2,160
423
478
-
1,259
320
939
41
120%
11%
10%
0.55
0.55
237
9,173
-
5,872
10,487
4,258
6,229
2010-11
15,325
6,918
5,330
1,588
494
2,082
460
510
-
1,112
171
941
41
125%
10%
10%
0.63
0.70
237
9,801
-
6,981
11,548
4,736
6,812
2011-12
15,230
8,496
6,711
1,785
983
2,768
515
570
-
1,683
513
1,170
5
125%
10%
10%
0.59
0.65
237
10,389
1,500
7,906
13,083
5,300
7,783
2012-13
15,770
9,567
7,509
2,058
722
2,752
684
364
-
1,703
678
1,025
3
115%
9%
7%
0.71
0.80
237
10,803
1,500
10,069
14,137
5,648
8,489
` crore
2014-15 @2015-16 @2016-17
12,227
12,075
7,282
8,316
5,108
5,736
2,174
2,580
992
962
3,087
3,485
1,296
1,146
634
604
651
-
506
1,734
223
379
283
1,355
1
5
130%
130%
11,974
8,678
6,516
2,162
1,025
3,138
1,047
575
-
1,516
506
1,010
3
130%
9%
6%
0.58
0.69
270
14,196
1,500
11,037
16,878
6,729
10,149
13%
8%
0.58
0.67
270
15,080
1,500
11,229
14,913
5,826
9,087
9%
1%
0.85
1.00
270
14,778
1,500
16,504
15,595
6,354
9,241
2013-14
13,183
8,675
6,121
2,554
656
2,946
868
587
-
1,491
537
954
3
125%
10%
7%
0.71
0.83
237
11,649
1,500
11,080
15,607
6,233
9,374
Generation (in MU’s)
Operating Income !
Operating Expenses
Operating Profit
Other Income #
EBDITA
Finance Cost
Depreciation
Exceptional Items
PBT
Tax
PAT
Basic Earning Per Share (EPS) - ` / shares
Dividend per share( %)
Return On Capital Employed [ROCE] (%)
Return On Net Worth [RONW] (%)
Long Term Debts / Equity
Total Debts/ Equity
Capital
Shareholder’s Reserves
Unsecured Perpetual Securities
Borrowings
Gross Block (incl. Capital WIP)
Accumulated Depreciation
Net Block
Notes:
* Share split from ` 10 to ` 1 in FY 12.
# Other Income excludes Gain/(Loss) on exchange.
! Includes Rate Regulatory Income/(Expenses).
FY11, FY12, FY13, FY14, FY15 figures are based on Revised Schedule VI workings.
@ FY16 & FY17 figure are based on Ind AS.
362 I Standalone Financials
The Tata Power Company Limited
AA
ADB
AfDB
AGL
AGM
APR
APTEL
ARMC
ASEAN
AT&C
ATAGS
AVVNL
BEST
BRR
BSI
BSSR
BU
GLOSSARY
Affirmative Action
Asian Development Bank
African Development Bank
Adjaristsqali Georgia LLC
Annual General Meeting
Annual Performance Review
Appellate Tribunal for Electricity
DDUGJY
Deen Dayal Upadhyaya Gram Jyoti Yojana
DEEP
DELP
DERC
DF
DHPC
DHS
Discovery of Efficient Electricity Price
Domestic Efficient Lighting Programme
Delhi Electricity Regulatory Commission
Distribution Franchisee
Dagachhu Hydro Power Corporation Limited
Deloitte Haskin and Sells LLP
Apex Risk Management Committee
DISCOM
Distribution Company
Association of Southeast Asian Nations
Aggregate Technical and Commercial
DSM
DVC
Demand-side management
Damodar Valley Corporation
Advanced Towed Artillery Gun System
EA 2003
Electricity Act, 2003
Ajmer Vidyut Vitran Nigam Limited
EBITDA
Brihanmumbai Electric Supply & Transport
Undertaking
Business Responsibility Report
British Standards Institute
PT Baramulti Suksessarana Tbk
Billion Units
CDPQ
Caisse de dépôt et placement du Québec
CEA
CEC
CEO
CERC
CFO
CGPL
CGS
CII
CIL
CKm
CKP
COO
Central Electricity Authority
Chief Ethics Counselor
Chief Executive Officer
Central Electricity Regulatory Commission
Chief Financial Officer
Coastal Gujarat Power Limited
Central Generating Station
Confederation of Indian Industry
Coal India Limited
Circuit Kilometers
Citra Kusuma Perdana
Chief Operating Officer
COSO
Committee of Sponsoring Organizations
CSA
CSI
Control Self Assessment
Community Satisfaction Index
CSIR-CIMFR Central Institute of Mining and Fuel Research
CSR
CTTL
DBSA
DD
DDG
Corporate Social Responsibility
Chemical Terminal Trombay Limited
Development Bank of South Africa
Due Diligence
Decentralized Distributed Generation
Earnings Before Interest, Tax, Depreciation and
Amortization
EBRD
EESL
EIR
EPC
EU
European Bank for Reconstruction and
Development
Energy Efficiency Services Limited
Effective Interest Rate
Engineering Procurement Construction
European Union
FEMA
Foreign Exchange Management Act, 1999
FFA
FM
FMO
FOB
Field Force Automation
Force Majeure
Netherlands Development Finance Company
Freight on Board
FRMC
Functional Risk Management Committee
FY
GCC
GCV
Financial Year
General Conditions of Contracts
Gross Calorific Value
GGRC
Gujarat Green Revolution Company Limited
GIS
GoI
GoM
GRI
GW
HC
HT
Gas Insulated Switchgear
Government of India
Government of Maharashtra
Global Reporting Initiative
Gigawatt
High Court
High Tension
IARM
Internal Audit and Risk Management
ICC
ICT
IDC
Internal Complaints Committee
Integrated Communicating Technology
Interest during Construction
363
98th Annual Report 2016-17 IEL
IFC
IIA
IIM
IIRC
IIT
IndAS
IPP
IPPPP
IR
ISTS
ITPC
JSERC
JV
KIA
KISS
KPC
KPO
KV
LED
Industrial Energy Limited
Internal Financial Controls
Institute of Internal Auditors
Indian Institute of Management
International Integrated Reporting Council
Indian Institute of Technology
Indian Accounting Standards
Independent Power Producer
Independent Power Producer Procurement
Programme
Integrated Reporting
Inter-State Transmission System
Itezhi Tezhi Power Corporation Limited
Jharkhand State Electricity Regulatory
Commission
Joint Venture
Kuwait Investment Authority
Kalinga Institute of Social Sciences
PT Kaltim Prima Coal
Kalinganagar Project Office
Kilo Volt
Light Emitting Diode
LIBOR
London Interbank Offered Rate
LNG
LTIFR
M&A
MCA
MCC
MD
MD&A
MERC
MGLI
Liquid Natural Gas
Lost Time Injuries Frequency Rate
Mergers and Acquisitions
Multi Civic Amenities
Millennium Challenge Corporation
Managing Director
Management Discussion and Analysis
Maharashtra Electricity Regulatory Commission
Mahatma Gandhi Labour Institute
MMRCL
Mumbai Metro Rail Corporation Limited
MMSCM
Million Metric Standard Cubic Meter
MNRE
Ministry of New & Renewable Energy
MoD
MoP
MoU
MPL
Ministry of Defence
Ministry of Power
Memorandum of Understanding
Maithon Power Limited
MSEDCL
Maharashtra State Electricity Distribution
Company Limited
MT
Million Tonnes
364
MUs
MW
MYT
NCD
NCT
NPA
NRC
NTPC
NVD
NYK
O&M
OEM
Million Units
Megawatt
Multi Year Tariff
Non-Convertible Debenture
National Capital Territory
Non-Performing Assets
Nomination and Remuneration Committee
National Thermal Power Corporation Limited
Night Vision Devices
Nehru Yuva Kendra
Operations and Maintenance
Original Equipment Manufacturer
OHSAS
Occupational Health and Safety Assessment
Series
OPEX
Operating Expenditure
PAT
PBT
PCB
PH6
PLF
PMS
PPA
PRI
PTL
PV
Profit After Tax
Profit Before Tax
Polychlorinated Biphenyl
Power House 6
Plant Load Factor
Performance Management System
Power Purchase Agreement
Process Robustness Index
Powerlinks Transmission Limited
Photo Voltaic
QR Code
Quick Response Code
RBI
RCI
RCM
RE
REC
Reserve Bank of India
Risk Control Index
Reliability Centred Maintenance
Renewable Energy
Renewable Energy Certificates
R-Infra
Reliance Infrastructure Limited
RMC
RMCI
RO
RPO
SAC
SAIDI
Risk Management Committee
Risk Mitigation Completion Index
Reverse Osmosis
Renewable Purchase Obligation
Sustainability Advisory Council
System Average Interruption Duration Index
SCADA
Supervisory Control and Data Acquisition
SED
SGRF
Strategic Engineering Division
State General Reserve Fund
The Tata Power Company Limited SHG
SLP
SLT
Self Help Group
Special Leave Petition
Senior Leadership Team
SMRD
Smart Revenue Recovery Device
SPC
SPS
SPV
T&D
TCOC
TCS
TPADL
TPC-D
TPCDT
TPC-T
TPDDL
TPJDL
TPP
Special Purpose Company
Structured Problem Solving
Special Purpose Vehicle
Transmission and Distribution
Tata Code of Conduct
Tata Consultancy Services Limited
TP Ajmer Distribution Limited
Tata Power Company - Distribution
Tata Power Community Development Trust
Tata Power Company - Transmission
Tata Power Delhi Distribution Limited
Tata Power Jamshedpur Distribution Limited
Trans-Pacific Partnership
TPREL
TPSDI
TPSSL
TPTCL
TSDL
TSL
TTML
TTSL
UDAY
UJALA
UMPP
USTDA
UT
VDC
WACC
WREPL
XBRL
Tata Power Renewable Energy Limited
Tata Power Skill Development Institue
Tata Power Solar Systems Limited
Tata Power Trading Company Limited
Tata Steel Distribution Licensee
Tata Sons Limited
Tata Teleservices (Maharashtra) Ltd
Tata Teleservices Limited
Ujwal Discom Assurance Yojna
Unnat Jyoti by Affordable LEDs for All
Ultra Mega Power Project
United States Trade and Development Agency
Union Territory
Village Development Committee
Weighted Average Cost of Capital
Welspun Renewables Energy Private Limited
Extensive Business Reporting Language
365
98th Annual Report 2016-17 THIS PAGE IN INTENTIONALLY LEFT BLANK
366
The Tata Power Company Limited SHAREHOLDER INFORMATION
To,
TSR Darashaw Limited
Unit: The Tata Power Company Limited
6-10, Haji Moosa Patrawala Industrial Estate (Near Famous Studio),
20, Dr. E. Moses Road, Mahalaxmi 400 011.
I/We request you to record the following information against my/our Folio No.:
Updation of Shareholder Information for physical holdings
General Information:
Folio No.
Name of the sole/first shareholder
PAN *
CIN/Registration No.: *
(applicable to corporate shareholders)
Tel. No. with STD Code
Mobile No.
E-mail Id.
* Self attested copy of the document(s) enclosed
Bank Details:
IFSC:
(11 digit)
Bank A/c Type:
Name of the Bank:
Bank Branch Address:
MICR:
(9 digit)
Bank A/c No.: *
* A blank cancelled cheque is enclosed to enable verification of bank details.
I/We hereby declare that the particulars given above are correct and complete. If the transaction is delayed because of incomplete
or incorrect information, I/we shall not hold the Company/RTA responsible. I/We undertake to inform any subsequent changes in the
above particulars as and when the changes take place. I/We understand that the above details shall be maintained by you till I/we
hold the securities under the above mentioned Folio No.
Place:
Date:
Encl:
Signature of sole/first holder
Notes:
1)
Scanned copy of the above form, duly completed, along with the necessary documents, can also be sent to us on the following
e-mail IDs: csg-unit@tsrdarashaw.com or investorcomplaints@tatapower.com. Alternatively, you can also send the same via WhatsApp on
+91 79001 77775 .
2)
For Members holding shares in electronic form, any change in the above details must be intimated directly to their Depository Participant only
and not to the Company or its Registrars and Share Transfer Agents.
The Tata Power Company Limited
Route Map to the AGM Venue
Venue
Birla Matushri Sabhagar
Sir Vithaldas Thackersey
Marg, 19, New Marine Lines
Mumbai 400 020
Landmark:
Next to Bombay Hospital
Distance from
Churchgate Station: 1 km
Distance from Chhatrapati
Shivaji Terminus: 1.2 km
Distance from Marine
Lines Station: 0.8 km
The Tata Power Company Limited
Registered Office: Bombay House, 24, Homi Mody Street, Mumbai 400 001.
Tel.: 022 6665 8282 Fax: 022 6665 8801 E-mail: tatapower@tatapower.com Website: www.tatapower.com
Proxy Form
[Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]
CIN: L28920MH1919PLC000567
Name of the company : The Tata Power Company Limited
Registered Office : Bombay House, 24, Homi Mody Street, Mumbai 400 001.
Name of the member(s) .................................................................................................................... E-mail ID : .........................................................................
Registered address : ..................................................................................................................................................................................................................................
Folio No. / Client ID : ................................................................................................................................. DP ID : ...................................................................................
I/We, being the member(s) of ........................................................................................................... shares of the above named company, hereby appoint
1. Name :..................................................................................................................................................... E-mail ID :.......................................................................
Address :..........................................................................................................................................................................................................................................
................................................................................................................................................................... Signature : ............................................ or failing him
2. Name :..................................................................................................................................................... E-mail ID :.......................................................................
Address :............................................................................................................................................................................................................................................
................................................................................................................................................................... Signature : ............................................ or failing him
3. Name :..................................................................................................................................................... E-mail ID :.......................................................................
Address :............................................................................................................................................................................................................................................
................................................................................................................................................................... Signature : .....................................................................
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 98th Annual General Meeting of the Company,
to be held on the 23rd day of August 2017 at 3 p.m. at Birla Matushri Sabhagar, Sir Vithaldas Thackersey Marg, 19, New Marine
Lines, Mumbai 400 020 and at any adjournment thereof in respect of such resolutions as are indicated overleaf:
Resolution No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
For
Against
Adoption of Audited Financial Statements of the Company for the financial year ended 31st March 2017
together with the Reports of the Board of Directors and the Auditors thereon
Adoption of Audited Consolidated Financial Statements of the Company for the financial year ended
31st March 2017 together with the Report of the Auditors thereon
Declaration of dividend on Equity Shares for the financial year ended 31st March 2017
Appointment of Director in place of Ms. Sandhya S. Kudtarkar (DIN: 00021947), who retires by rotation
and, being eligible, offers herself for re-appointment
Appointment of Auditors
Appointment of Mr. N. Chandrasekaran as a Director
Appointment of Mr. S. Padmanabhan as a Director
Appointment of Ms. Anjali Bansal as a Director and as an Independent Director
Appointment of Ms. Vibha Padalkar as a Director and as an Independent Director
Appointment of Mr. Sanjay V. Bhandarkar as a Director and as an Independent Director
Appointment of Mr. K. M. Chandrasekhar as a Director and as an Independent Director
Re-appointment of Mr. Ashok S. Sethi as COO and Executive Director
Revision in terms of remuneration of Mr. Anil Sardana, CEO and Managing Director
Private placement of Non-Convertible Debentures/Bonds
Increase in the Authorised Share Capital of the Company
Alteration of the Memorandum of Association of the Company
Appointment of Branch Auditors
Ratification of Cost Auditor’s Remuneration
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Signed this .......................................... day of........................................ 2017
Signature of shareholder ...............................................................................
Signature of Proxy holder(s) ........................................................................
Notes:
Affix
Revenue
Stamp
1.
This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company at Bombay House,
24, Homi Mody Street, Mumbai 400 001, not less than 48 hours before the commencement of the Meeting.
2.
Those Members who have multiple folios with different joint holders may use copies of the Proxy Form.
NOTES
Striving for Excellence in Customer Service
Bachpan Gully