Tata Power Company Limited Annual Report 2019

Plain-text annual report

Dear Shareholders, It gives me immense pleasure to share with you our performance for the year and perspectives on the way forward. FY 2018-19 was marked by steady growth in power demand, led by an improvement in the overall economic environment in India. Over the next decade, the Indian economy is set (cid:87)(cid:82)(cid:3) (cid:74)(cid:85)(cid:82)(cid:90)(cid:3) (cid:68)(cid:87)(cid:3) (cid:68)(cid:3) (cid:85)(cid:72)(cid:70)(cid:82)(cid:85)(cid:71)(cid:3) (cid:83)(cid:68)(cid:70)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:3) (cid:78)(cid:72)(cid:92)(cid:3) (cid:72)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:76)(cid:86)(cid:3) (cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:69)(cid:72)(cid:3) (cid:44)(cid:81)(cid:71)(cid:76)(cid:68)(cid:182)(cid:86)(cid:3) (cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:87)(cid:82)(cid:3) (cid:73)(cid:88)(cid:79)(cid:191)(cid:79)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) electricity needs. We expect the growth momentum in the Indian power sector to continue, led by government’s infrastructure push and various structural policy reforms, which should augur well for the country’s power demand growth. Your Company’s consolidated PAT for FY 2019 was at ` 2,441 crore compared to ` (cid:21)(cid:15)(cid:25)(cid:20)(cid:20)(cid:3)(cid:70)(cid:85)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:80)(cid:68)(cid:76)(cid:81)(cid:79)(cid:92)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:79)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:191)(cid:87)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:70)(cid:82)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3) (cid:83)(cid:85)(cid:82)(cid:191)(cid:87)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3) (cid:70)(cid:82)(cid:68)(cid:79)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:3) (cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:3) (cid:90)(cid:68)(cid:86)(cid:3) (cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3) (cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:71)(cid:88)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:71)(cid:82)(cid:80)(cid:72)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3) market pricing obligation in Indonesia and increased fuel prices. All our subsidiaries and operating divisions have reported robust performance despite sectoral challenges. Our renewable power business added 200 MW in the current year and with another 400 MW in the pipeline. The solar EPC business possesses a healthy order book of ` 1,360 crore. We also launched residential solar rooftop solutions in several cities and installed 65 EV charging points across the country. The Trombay PPA with BEST and Tata Power’s Mumbai discom received an extension for 5 years. Through the Resurgent platform, the Company is in the process of acquiring the 1,980 MW Prayagraj power plant in Uttar Pradesh. Regarding Coastal Gujarat Power Limited, further to the recommendations by a High Powered Committee set up by the Government of Gujarat, we are in discussion with various state governments and state discoms and expect a compensatory tariff for it soon. The Company continued its exit from non-core investments and raised about ` 1,897 crore through disinvestment of Tata Communications Limited and Panatone Finvest Limited. The management is committed to deleveraging the Balance Sheet by divesting the non-core assets. The proceeds from such sale would be re-invested in core areas as well as emerging areas where there is a huge growth opportunity. Our future growth would be in conventional power generation with emphasis on renewable power, power distribution and service-led businesses and this will bring in greater value and help us align with the emerging consumer needs. (cid:39)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:15)(cid:3) (cid:55)(cid:68)(cid:87)(cid:68)(cid:3) (cid:51)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3) (cid:85)(cid:72)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) (cid:82)(cid:85)(cid:74)(cid:68)(cid:81)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:73)(cid:82)(cid:70)(cid:88)(cid:86)(cid:3) (cid:82)(cid:81)(cid:3) (cid:78)(cid:72)(cid:92)(cid:3) (cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:191)(cid:72)(cid:71)(cid:3) (cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3) (cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3) (cid:79)(cid:76)(cid:78)(cid:72)(cid:3) Thermal & Hydro Generation, Renewable Generation, Transmission, Distribution and New & Value-Added Businesses including Rooftop Solar, Smart Metering, Micro Grids in rural areas and setting up of Electric Vehicle charging units. The Company, during its century old existence, has constantly evolved to stay relevant to meet the needs of customers and contribute to nation building. It remains focused on building sustainable value to all our stakeholders while upholding the Tata values. I would like to take this opportunity to thank our customers, suppliers, shareholders, unions, employees and the Board for their constant support, faith and trust in us, with the belief that it will continue for the times to come. (cid:44)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:78)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:191)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:89)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17) Yours sincerely, Praveer Sinha CEO & MD, Tata Power 100th Annual Report 2018-19 CHIEF FINANCIAL OFFICER Mr. Ramesh N. Subramanyam COMPANY SECRETARY Mr. Hanoz M. Mistry STATUTORY AUDITORS S R B C & CO. LLP SOLICITORS Mulla & Mulla & Craigie Blunt & Caroe BANKERS Axis Bank Limited Bank of America Citibank N. A. Credit Agricole S. A. DBS Bank Limited HDFC Bank Limited ICICI Bank Limited IDBI Bank Limited IDFC Bank Limited Induslnd Bank Limited Kotak Mahindra Bank Limited Standard Chartered 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 CIN: L28920MH1919PLC000567 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, (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 CONTENTS Notice and Explanatory Statement .................................... Shareholder Information ........................................................ Board’s Report ............................................................................ Annexures to the Board’s Report ......................................... Management Discussion & Analysis ................................... Report on Corporate Governance ....................................... Business Responsibility Report ........................................... Consolidated Financial Statements Independent Auditor’s Report .............................................. Annexure to the Independent Auditor’s Report ............ Consolidated Balance Sheet .................................................. Consolidated Statement of Profit and Loss ..................... Consolidated Statement of Cash Flows ............................. Consolidated Statement of Changes in Equity ............... Notes to the Consolidated Financial Statements .......... Form AOC - 1 ............................................................................... Standalone Financial Statements Independent Auditor’s Report .............................................. Annexures to the Independent Auditor’s 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......................................................................................... Proxy Form 02 11 13 26 62 83 113 124 130 132 133 134 136 137 239 242 247 250 251 252 254 255 324 325 100TH ANNUAL GENERAL MEETING Day & Date : Tuesday, 18th June 2019 Time Venue : 3:00 p.m. : Birla Matushri Sabhagar, Sir Vithaldas Thackersey Marg, 19, New Marine Lines, Mumbai 400 020 Contents I 1 The Tata Power Company Limited NOTICE NOTICE IS HEREBY GIVEN THAT THE HUNDREDTH ANNUAL GENERAL MEETING OF THE TATA POWER COMPANY LIMITED will be held on Tuesday, the 18th day of June 2019 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 2019, 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 2019, together with the Report of the Auditors thereon. To declare a dividend on Equity Shares for the financial year ended 31st March 2019. To appoint a Director in place of Mr. Banmali Agrawala (DIN: 00120029), who retires by rotation and, being eligible, offers himself for re-appointment. Special Business: 5. Appointment of Mr. Ashok Sinha 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. Ashok Sinha (DIN: 00070477), who was appointed by the Board of Directors as an Additional Director of the Company with effect from 2nd May 2019 and who holds office upto the date of this Annual General Meeting of the Company in terms of Section 161(1) of the Companies Act, 2013 (the Act) and Article 132 of the Articles of Association of the Company but who is eligible for appointment and in respect of whom the Company has received a notice in writing from a Member under Section 160(1) of the Act proposing his candidature for the office of Director, be and is hereby appointed as 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), the Companies (Appointment and Qualifications of Directors) Rules, 2014, read with Schedule IV to the Act and Regulation 17 and other applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations), as amended from time to time, the appointment of Mr. Ashok Sinha (DIN: 00070477), who meets the criteria for independence as provided in Section 149(6) of the Act and the Rules framed thereunder and Regulation 16(1)(b) of the Listing Regulations and who has submitted a declaration to that effect, and who is eligible for appointment, as an Independent Director of 2 I Notice the Company, not liable to retire by rotation, for a term of five years commencing from 2nd May 2019 upto 1st May 2024, be and is hereby approved.” 6. 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 (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 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. RESOLVED FURTHER that the Board of Directors of the Company be and is hereby authorised to do all acts, matters, deeds and things and take all such steps as may be necessary, proper or expedient to give effect to this Resolution.” 7. 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 (Rupees Six lakh fifty thousand) plus applicable taxes, 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 2019-20. RESOLVED FURTHER that the Board of Directors of the Company be and is hereby authorised to do all acts, matters, deeds and things and take all such steps as may be necessary, proper or expedient to give effect to this Resolution.” NOTES: 1. 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 7 above and the relevant details of the Directors seeking re-appointment/ appointment as set out in Item Nos.4 and 5 above as 100th Annual Report 2018-19 2. 3. 4. 5. required by Regulations 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. Members/Proxies and authorised representatives are requested to bring the duly completed Attendance Slip enclosed herewith to attend 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 Friday, 7th June 2019 to Tuesday, 18th June 2019, 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 Thursday, 20th June 2019, as under: i) ii) 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 Thursday, 6th June 2019; To all Members in respect of shares held in physical form after giving effect to transfers in respect of valid transfer requests lodged with the Company on or before the close of business hours on Thursday, 6th June 2019. 7. 8. 9. 10. 11. 12. 6. 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 Participant (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 DP. Members are requested to note that dividends, if not encashed for a consecutive period of 7 years from the date of transfer to Unpaid Dividend Account of the Company, are liable to be transferred to the Investor Education and Protection Fund (IEPF). Further, the shares in respect of such unclaimed dividends are also liable to be transferred to the demat account of the IEPF Authority. In view of this, Members/Claimants are requested to claim their dividends from the Company, within the stipulated timeline. The Members, whose unclaimed dividends/shares have been transferred to IEPF, may claim the same by making an application to the IEPF Authority in Form No. IEPF-5 available on www.iepf.gov.in. The Members/Claimants can file only one consolidated claim in a financial year as per the IEPF Rules. For details, please refer to Report on Corporate Governance which is a part of this Annual Report. 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 2018-19 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. Process and manner for Members opting for e-Voting are as under:- I. In compliance with the 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 Notice I 3 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 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 the 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. 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. II. III. 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. In case a Member votes by both the modes then the votes cast through remote e-voting shall prevail and the votes cast at the AGM shall be considered invalid. IV. Members of the Company, holding shares either in physical form or in electronic form, as on the cut- off date of Tuesday, 11th June 2019, may cast their vote by remote e-Voting. The remote e-Voting period commences on Friday, 14th June 2019 at 9:00 a.m. (IST) and ends on Monday, 17th June 2019 at 5:00 p.m. (IST). 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 instructions for Members for e-Voting are as under: The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below: Step 1: Log-in to NSDL e-Voting system at www.evoting.nsdl.com How to Log-in to NSDL e-Voting website? A. B. C. Visit the e-Voting website of NSDL. Open web browser by typing the following: www.evoting.nsdl.com either on a Personal Computer or on a mobile. Once the home page of e-Voting system is launched, click on the icon ‘Login’ which is available under ‘Shareholders’ section. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shown on the screen. Alternatively, if you are registered for NSDL e-services log-in at eservices.nsdl.com with your existing IDEAS IDEAS, you can i.e. 4 I Notice The Tata Power Company Limited login. Once you log-in to NSDL e-services after using your log-in credentials, click on e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically. D. Your User ID details are given below: i) Manner of holding shares i.e. Demat (NSDL or CDSL) or Physical For Members who hold shares in demat account with NSDL. ii) iii) For Members who hold shares in demat account with CDSL. For Members holding shares in Physical Form. Your User ID is: IN300*** and Client if your DP ID 8 Character DP ID followed by 8 Digit Client ID ID For example is is 12****** then your user ID is IN300***12****** 16 Digit Beneficiary ID For example if your Beneficiary ID is 12************** then your user ID is 12************** registered with EVEN Number followed by Folio Number the Company. For example if Folio Number is 001*** and EVEN is 101456 then user ID is 101456001*** E. Your password details are given below: i) ii) If you are already registered for e-Voting, then you can use your existing password to login and cast your vote. If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system will force you to change your password. iii) How to retrieve your ‘initial password’? a) If your e-mail ID is registered in your demat account or with the company, your ‘initial password’ is communicated to you on your e-mail ID. Trace the e-mail sent to you from NSDL from your mailbox. Open the e-mail and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8 digit Client ID for NSDL account, last 8 digits of Client ID for CDSL account or folio number for shares held in physical form. The .pdf file 100th Annual Report 2018-19 b) contains your ‘User ID’ and your ‘initial password’. ID If your e-mail is not registered, your ‘initial password’ is communicated to you on your postal address. F. If you are unable to retrieve or have not received ‘initial password’ or have the forgotten your password: i) ii) iii) Click on ‘Forgot User Details/Password?’ (If you are holding shares in your demat account with NSDL or CDSL) option available on www.evoting.nsdl.com. ‘Physical User Reset Password?’ (If you are holding shares in physical mode) option available on www.evoting.nsdl. com. If you are still unable to get the password by aforesaid two options, you can send a request at evoting@ nsdl.co.in mentioning your demat account number/folio number, your PAN, your name and your registered address. G. H. I. After entering your password, tick on Agree to ‘Terms and Conditions’ by selecting on the check box. Now, you will have to click on ‘Login’ button. After you click on the ‘Login’ button, Home page of e-Voting will open. Step 2: Cast your vote electronically on NSDL e-Voting system. How to cast your vote electronically on NSDL e-Voting system? A. B. C. D. E. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, click on Active Voting Cycles. After clicking on Active Voting Cycles, you will be able to see all the companies ‘EVEN’ in which you are holding shares and whose voting cycle is in active status. Select ‘EVEN’ of company for which you wish to cast your vote. Now you are ready for e-Voting as the Voting page opens. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for which you wish to cast your vote and click on ‘Submit’ and also ‘Confirm’ when prompted. G. H. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page. Once you confirm your vote on the resolution, you will not be allowed to modify your vote. General Guidelines for Members i) ii) iii) iv) (i.e. other Institutional Members than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG Format) of relevant Board Resolution/Authority the letter etc. with attested specimen signature of the duly authorised signatory(ies) who are authorised to vote, to the Scrutinizer by e-mail to cs@parikhassociates.com with a copy marked to evoting@nsdl.co.in. It is strongly recommended not to share your password with any other person and take utmost care to keep your password confidential. Login to the e-Voting website will be disabled upon five unsuccessful attempts to key in the correct password. In such an event, you will need to go through ‘Forgot User Details/Password?’ or the ‘Physical User Reset Password?’ option available on www.evoting.nsdl.com to reset the password. (FAQs) In case of any queries, you may refer the for Frequently Asked Questions Shareholders and e-Voting user manual for Shareholders available at the download section of www.evoting.nsdl.com or call on toll free no.: 1800-222-990 or send a request at evoting@nsdl.co.in. 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). VI. 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 Tuesday, 11th June 2019. VII. 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. Tuesday, 11th June 2019, may obtain the login ID and password by sending a request at evoting@nsdl.co.in or the Company/TSRD. VIII. 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. F. Upon confirmation, the message ‘Vote cast successfully’ will be displayed. IX. The Board of Directors has appointed Mr. P. N. Parikh (FCS 327) or failing him, Mr. Mitesh Dhabliwala Notice I 5 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S X. XI. XII. (FCS 8331) of M/s. Parikh and Associates, Company Secretaries as Scrutinizer to scrutinize the voting at the AGM and remote e-Voting process, in a fair and transparent manner. The Chairman shall, at the AGM, allow voting with the assistance of Scrutinizer, to all those Members/ Proxies 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. 13. The Members are requested to note that the Company is pleased to provide a one way Webcast facility to view the live streaming of the proceedings of the AGM for the convenience of those Members who are unable to attend the AGM due to locational constraints. The Members will be able to view the proceedings on NSDL’s e-Voting website www.evoting.nsdl.com. 14. Members who are unable to attend the Meeting in person may use this facility by using the same login credentials as provided for remote e-Voting. Members on the day of the AGM will login through their user ID and password on to the e-Voting website. The link will be available in Member login where the EVEN of Company will be displayed. On clicking this link, the Member will be able to view the webcasting of the AGM proceedings. The Webcast facility will be available on 18th June 2019 from 3:00 p.m. onwards till the conclusion of the Meeting. As per the provisions of Section 72 of the Act, the facility for making nomination is available for the Members in respect of the shares held by them. Members who have not yet registered their nomination are requested to register the same by submitting Form No. SH-13. The said form can be downloaded from the Company’s website www.tatapower. com (under ‘Investor Relations’ section). Members are requested to submit the said details to their DP in case the shares are held by them in electronic form and to TSRD in case the shares are held by them in physical form. 15. 6 I Notice The Tata Power Company Limited 16. Updation of Members details: 17. 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 available on the Company’s website under the section ‘Investor Relations’ as also attached as part of this Report (page 11). Members holding shares in physical form are requested to submit the filled in form to the Company or TSRD in physical mode or in electronic mode, as per instructions mentioned in 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 TSRD. SEBI had vide Notification Nos. SEBI/LAD-NRO/ GN/2018/24 dated 8th June 2018 and SEBI/LAD-NRO/ GN/2018/49 dated 30th November 2018 read with BSE circular no. LIST/COMP/15/2018-19 dated 5th July 2018 and NSE circular no. NSE/CML/2018/26 dated 9th July 2018 directed that transfer of securities would be carried out in dematerialised form only with effect from 1st April 2019, except in case of transmission or transposition of securities. Accordingly, Members holding securities in physical form were separately communicated by TSRD vide letter dated 19th July 2018, and reminders dated 31st October 2018 and 29th November 2018 at their registered address. In view of the above and to avail the benefits of dematerialisation, Members are requested to consider dematerialising shares held by them in physical form. However, the transfer deed(s) lodged prior to the 1st April deadline and returned due to deficiency in the document, may be re-lodged for transfer even after the deadline of 1st April 2019 with the office of TSRD in Mumbai or at their Branch Offices or at the Registered Office of the Company. 18. Members seeking any information with regard to the accounts, are requested to write to the Company at an early date, so as to enable the Management to keep the information ready at the AGM. By Order of the Board of Directors, For The Tata Power Company Limited H. M. Mistry Company Secretary FCS No.: 3606 Mumbai, 2nd May 2019 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 100th Annual Report 2018-19 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 7 of the accompanying Notice dated 2nd May 2019: Item No. 5: Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors appointed Mr. Ashok Sinha (DIN: 00070477) as Additional Director of the Company and also as Independent Director, not being liable to retire by rotation, for a term of 5 years i.e. from 2nd May 2019 upto 1st May 2024, subject to approval of the Members. Pursuant to the provisions of Section 161(1) of the Act and Article 132 of the Articles of Association of the Company, Mr. Sinha holds office only upto the date of this Annual General Meeting (AGM) and is eligible to be appointed as Director. The Company has, in terms of Section 160(1) of the Act, received in writing a Notice from a Member, proposing his candidature for the office of Director. The Company has received declaration from Mr. Sinha to the effect that he meets the criteria of independence as provided in Section 149(6) of the Act, read with the Rules framed thereunder and Regulation 16(1)(b) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing Regulations). In the opinion of the Board of Directors, Mr. Sinha is independent of management. The terms and conditions of his appointment shall be open for inspection by the Members of the Company, without payment of any fees, at the Registered Office of the Company at Bombay House, 24, Homi Mody Street, Mumbai 400 001, between 10:00 a.m. to 3:00 p.m. (IST) on all working days (except Saturdays, Sundays and holidays), upto the date of the AGM and also at the venue during the AGM. A brief profile of Mr. Sinha is as under: Mr. Sinha has a B.Tech. degree in Electrical Engineering from the Indian Institute of Technology (IIT), Kanpur (1973) and PGDBM from the Indian Institute of Management (IIM), Bangalore, with specialisation in Finance (1977). He has been conferred the Distinguished Alumnus Award from both IIT, Kanpur and IIM, Bangalore. He has been conferred with the India Chief Financial Officer Award 2001 for Information and Knowledge Management by the Economic Intelligence Unit India and American Express. He received award from Technology Media Group for Customer Management. He has a wealth of experience, competencies and expertise from his leadership journey as the Chairman and Managing Director of Bharat Petroleum Corporation Limited (BPCL), which is present across the entire value chain with activities covering exploration and production, refining and marketing oil and gas products. He spent 33 years in BPCL, where he served on the Board of BPCL for 15 years – first as Director (Finance) for 10 years from 1996 and then as its Chairman and Managing Director for 5 years from August 2005. Since 2011, he has served on the Boards of Petronet LNG Limited, CMC Limited (erstwhile subsidiary of Tata Consultancy Services Limited), four subsidiaries of Vodafone India Limited, Tata Advanced Systems Limited, Tata Lockheed Martin Aerostructures Limited and Nova Integrated Systems Limited. Currently, he is an independent director on the board of Cipla Limited, Axis Asset Management Company Limited, You Broadband India Limited and AirAsia (India) Limited. Further details and current directorships of Mr. Sinha are provided in the Annexure to this Notice. In compliance with the provisions of Section 149, read with Schedule IV to the Act and Regulation 17 of the Listing Regulations, the appointment of Mr. Sinha as Independent Director is now being placed before the Members for their approval. The Board recommends the Resolution at Item No.5 of the accompanying Notice for approval by the Members of the Company. Other than Mr. Sinha and his relatives, none of the Directors or KMP of the Company or their respective relatives is concerned or interested in the Resolution mentioned at Item No.5 of the accompanying Notice. Mr. Sinha is not related to any Director or KMP of the Company. Item No.6: 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, transmission 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.6 of the accompanying Notice. The Board recommends the Resolution at Item No.6 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 is concerned or interested in the Resolution at Item No.6 of the accompanying Notice. Item No.7: 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 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notice I 7 maintained by the Company for the Financial Year 2019-20, at a remuneration of ₹ 6,50,000 (Rupees Six lakh fifty thousand) plus applicable taxes 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 previous years under the provisions of the Act. The Board recommends the Resolution at Item No.7 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 is concerned or interested in the Resolution at Item No.7 of the accompanying Notice. The Tata Power Company Limited By Order of the Board of Directors, For The Tata Power Company Limited H. M. Mistry Company Secretary FCS No.: 3606 Mumbai, 2nd May 2019 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 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 Date of Birth (Age) Date of Appointment Expertise in specific functional areas 8 I Notice Mr. Banmali Agrawala Mr. Ashok Sinha 30th April 1963 (56 years) 15th February 1952 (67 years) 17th November 2017 2nd May 2019 Mr. Banmali Agrawala joined Tata Sons Private Limited in October 2017 as President, Infrastructure, Defence and Aerospace. His global experience in infrastructure will be very beneficial as the Company aspires for the next phase of growth. His knowledge in several areas including leadership development, digital infrastructure, technology, innovation and will also be very beneficial to the Company. Prior to this, he was President and CEO of GE South Asia, a position he held since February 2013. Earlier, Mr. Agrawala was the Executive Director (Business Development & Strategy) on the Company’s Board from February 2008 to November 2011. Prior to that, he was the Managing Director of Wartsila India Limited and Group Vice President, Bio Power, Wartsila Corporation, responsible for the global Bio Power business. Mr. Sinha has been conferred the Distinguished Alumnus Award from both Indian Institute of Technology, Kanpur and Indian Institute of Management, Bangalore. He has been conferred with the India Chief Financial Officer Award 2001 for Information and Knowledge Management by the Economic Intelligence Unit India and American Express. He received award from Technology Media Group for Customer Management. He has a wealth of experience, competencies and expertise from his leadership journey as the Chairman and Managing Director of Bharat Petroleum Corporation Limited (BPCL), which is present across the entire value chain with activities covering exploration and production, refining and marketing oil and gas products. He spent 33 years in BPCL, where he served on the Board of BPCL for 15 years – first as Director (Finance) for 10 years from 1996 and then as its Chairman and Managing Director for 5 years from August 2005. Since 2011, he has served on the Boards of Petronet LNG Limited, CMC Limited (erstwhile subsidiary of Tata Consultancy Services Limited), four subsidiaries of Vodafone India Limited, Tata Advanced Systems Limited, Tata Lockheed Martin Aerostructures Limited and Nova Integrated Systems Limited. 100th Annual Report 2018-19 Name of Director Qualifications Mr. Banmali Agrawala Mr. Ashok Sinha Mechanical Mangalore University. Engineering graduate from B.Tech. degree in Electrical Engineering from the Indian Institute of Technology, Kanpur. Alumnus of Programme of Harvard Business School. the Advanced Management from PGDBM Institute of Management, Bangalore, with specialisation in Finance. Indian the Directorships held in other companies (excluding foreign companies) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Tata Projects Ltd. Tata Advanced Materials Ltd. Tata Housing Development Co. Ltd. Tata Realty and Infrastructure Ltd. Tata Advanced Systems Ltd. AirAsia (India) Ltd. (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Cipla Ltd. Axis Asset Management Co. Ltd. AirAsia (India) Ltd. You Broadband India Ltd. The Hospital & Nursing Home Benefits Association Committee position held in other companies Audit Committee Chairman Audit Committee Chairman Tata Advanced Systems Ltd. (cid:120) Nomination and Remuneration Committee Chairman Tata Advanced Systems Ltd. (cid:120) Member Tata Projects Ltd. (cid:120) (cid:120) Corporate Social Responsibility Committee Tata Realty and Infrastructure Ltd. Chairman Tata Housing Development Co. Ltd. (cid:120) Member Tata Realty and Infrastructure Ltd. (cid:120) Securities and Allotment Committee Member Tata Realty and Infrastructure Ltd. (cid:120) Share Allotment Committee Member Tata Advanced Systems Ltd. (cid:120) Project Review Committee Chairman (cid:120) Tata Projects Ltd. Eligible for sitting fees Cipla Ltd. AirAsia (India) Ltd. You Broadband India Ltd. (cid:120) (cid:120) (cid:120) Member Axis Asset Management Co. Ltd. (cid:120) Nomination and Remuneration Committee Member AirAsia (India) Ltd. Axis Asset Management Co. Ltd. (cid:120) (cid:120) (cid:120) Corporate Social Responsibility Committee You Broadband India Ltd. Chairman Axis Asset Management Co. Ltd. You Broadband India Ltd. (cid:120) (cid:120) Investment and Risk Management Committee Member (cid:120) Cipla Ltd. Eligible for sitting fees and commission, as approved by the Board 7 Nil Nil N.A. Nil Nil 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 For other details such as number of meetings of the Board attended during the year, remuneration drawn and relationship with other directors and key managerial personnel in respect of above directors, please refer to the Report on Corporate Governance, which is a part of this Annual Report. Notice I 9 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Route Map for 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 10 I Notice (cid:5) (cid:5) (cid:5) 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 Type:# # 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.: Notes : Signature of sole/first holder 1) 2) 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. 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. Shareholder Information I 11 THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK 12 I Shareholder Information 100th Annual Report 2018-19 To the Members, BOARD’S REPORT The Directors are pleased to present to you the Hundredth Annual Report on the business and operations of your Company along with the audited Financial Statements of Account for the year ended 31st March 2019. 1. FINANCIAL RESULTS (Table 1) Figures in ₹ crore (a) (b) (c) (d) (e) (f ) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) Net Sales/Income from Operations* (Less): Operating Expenditure Operating Profit (Less)/: Forex Loss/(Gain) Add: Other Income (Less): Finance Cost Profit before Depreciation and Tax (Less): Depreciation/Amortisation/Impairment Profit Before Share of Profit of Associates and Joint Ventures Add: Share of Profit of Associates and Joint Ventures Profit Before Exceptional Item (Less)/Add: Exceptional Item Profit/ (Loss) before Tax (Less)/Add: Tax Expenses or Credit Net Profit/(Loss) after Tax from Continuing Operations Profit/ (Loss) before Tax from Discontinued Operations (Less)/Add: Tax Expenses or Credit from Discontinued Operations Net Profit/(Loss) after Tax from Discontinued Operations Net Profit for the year Net Profit for the year Attributable to – - Owners of the Company - Non-controlling interests (u) Other Comprehensive income (Net of Tax) (v) Total Comprehensive Income Attributable to – - Owners of the Company - Non-controlling interests *Including rate regulatory income/(expense) #Restated - Refer notes to consolidated financial statements Standalone FY19 7,688 (5,302) 2,386 (11) 516 (1,500) 1,391 (632) 759 FY18 7,301 (4,924) 2,377 (20) 929 (1,431) 1,855 (663) 1,192 - 759 1,168 1,927 (92) 1,835 (192) 66 (126) 1,709 1,709 - (45) 1,664 1,664 - - 1,192 (4,437) (3,245) 166 (3,079) (86) 14 (72) (3,151) (3,151) - 45 (3,106) (3,106) - Consolidated FY19 29,493 (22,995) 6,498 (141) 396 (4,170) 2,583 (2,393) 190 FY18# 26,430 (20,453) 5,977 (114) 433 (3,761) 2,535 (2,346) 189 1,287 1,477 1,746 3,223 (656) 2,567 (192) 66 (126) 2,441 2,191 250 165 2,606 2,356 250 1,554 1,743 1,102 2,845 (162) 2,683 (86) 14 (72) 2,611 2,408 203 94 2,705 2,502 203 2. FINANCIAL PERFORMANCE AND THE STATE OF THE COMPANY’S AFFAIRS 2.1. CONSOLIDATED On a Consolidated basis, the Operating Revenue was at ₹ 29,493 crore in FY19, compared to ₹ 26,430 crore in FY18. The increase was mainly due to recovery of higher fuel and power purchase cost related to regulated businesses, capacity addition in renewable business and good operational performance by the businesses. The operating profit for the year under review recorded an 8.72% growth over FY18. Finance costs increased from ₹ 3,761 crore to ₹ 4,170 crore largely due to forex, other credits in FY18 and other one-off items. The profits from Joint Ventures (JV) and Associates were lower mainly due to lower FOB price of coal on account of new regulations in Indonesia impacting the coal mines. Board’s Report I 13 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Consolidated Profit after Tax in FY19 was at ₹ 2,441 crore compared to ₹ 2,611 crore in FY18 mainly due to lower profits from coal companies on account of lower FOB price. The current year exceptional items include gain on sale of investments in associate companies viz. Tata Communications Limited (TCL) and Panatone Finvest Limited (PFL) partially offset by impairment provisions of Rithala plant. The previous year’s exceptional items include reversal of impairment provision of investment in coal mining made in earlier years. [Refer Section 10 - Management Discussion and Analysis (MD&A) of this report for details] 2.2. STANDALONE On a Standalone basis, the Operating Revenue stood at ₹ 7,688 crore in FY19 compared to ₹ 7,301 crore in FY18. The increase was mainly due to higher fuel cost and power purchase cost being passed through for the regulated business and positive effect of Multi-Year Tariff (MYT) order for the Mumbai license area. The profit in FY19 was at ₹ 1,709 crore as compared to a loss of ₹ 3,151 crore last year. This was mainly due to provision of ₹ 4,330 crore for impairment of investments in Mundra, Georgia and Trombay generating station in FY18. The Earnings per Share (Basic and Diluted) in FY19 stood at ₹ 2.63 before exceptional items and at ₹ 5.90 after exceptional items. The Tata Power Company Limited in TCL and PFL which were classified as assets held for sale in FY18. The resultant gain on sale of investments of ₹ 1,213 crore and ₹ 1,897 crore has been included as an exceptional income in the standalone and consolidated financial statements respectively. Others (only in the consolidated accounts): Impairment of ₹ 106 crore for the carrying amount of Rithala power plant has been made in Tata Power Delhi Distribution Limited (TPDDL) due to no likelihood of its operation with gas not being available at administered prices and the partial disallowance of tariff by Delhi Electricity Regulatory Commission (DERC). No material changes and commitments have occurred after the close of the year under review till the date of this Report which affect the financial position of the Company. 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 on the Company’s website at https://www.tatapower. com/investor-relations/inv-info- archive.aspx (alternatively, scan the adjacent QR code using a mobile device to read the file on the Company website). (Refer Section 9 - MD&A of this report for details) 3. DIVIDEND 2.3. EXCEPTIONAL ITEMS CGPL-Coal Mines SBU: Considering the fact that the investment in Indonesian coal mines were made to secure coal supply to CGPL and an adverse impact on CGPL is offset to some extent by the investment in the coal mines, the said investments have been treated as a single Cash Generating Unit (CGU). This has a significant impact on how the impairment of the combined CGU is assessed every year as per Ind AS 36. The combined effect of these two had resulted in an impairment of ₹ 3,555 crore of the investment in CGPL in the standalone accounts and reversal of impairment of ₹ 1,887 crore (part amount of earlier impairment provided) of investment in coal mining companies in consolidated accounts of FY18. Entry Tax: The Company had received demands in respect of entry tax on import of fuel for Trombay plant. During the year under review, Government of Maharashtra has notified an amnesty scheme for settlement of arrears of tax, interest and penalty. The Company has decided to avail of the scheme and, accordingly, recognized a provision of ₹ 345 crore towards settlement as per the above scheme. The amount has been recognised as revenue to the extent recoverable from consumers. Sale of Investments in Associate Companies: During the year under review, the Company sold investments Based on the Company’s performance, 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 (Listing Regulations), 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 in of the Company Annexure-I. is provided The Dividend Policy of the Company can also be accessed on the Company’s website at https://www. tatapower.com/corporate/policies.aspx (alternatively, 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. 14 I Board’s Report 100th Annual Report 2018-19 The Company has re-organised itself into 4 business verticals in order to bring focus and accountability. These segments will eventually be converted to Strategic Business Units (SBUs) with individual Profit and Loss (P&L) and Balance Sheet targets of their own and this change shall be reflected in the consolidated financial statement from next year onwards. Currently, the Company (including its subsidiaries) has Details of generation businesses in operation nearly 33% of its capacity (in MW terms) in clean and green generation sources (hydro, wind, solar and waste heat recovery). As on 31st March 2019, the Tata Power group of companies had an operational generation capacity of 10,957 MW from various fuel sources - thermal (coal, gas and oil), hydroelectric, renewable energy (wind and solar PV) and waste heat recovery, details of which are given below in Table 2. (Table 2) Category Total (MW) Fuel Source State Location Normative Capacity under management (MW) PPA Tenure Return Profile Gujarat Mundra Maharashtra Trombay Jharkhand Maithon 4,150 1,430* 1,050 Long term PPA Bid-based Medium term PPA Regulated Long term PPA Regulated Thermal – Coal/Oil/Gas Jharkhand Jojobera 548 Long term PPA Indonesia New Delhi PT Citra Kusuma Perdana Rithala (Gas based) Jharkhand Jamshedpur Odisha Kalinganagar West Bengal Haldia Maharashtra Bhira Maharashtra Khopoli Thermal – Waste Heat Recovery Hydro Maharashtra Bhivpuri Bhutan Zambia Dagachhu Itezhi Tezhi 54 108 120 135 120 300 72 75 126 120 a) Regulated returns b) Bilaterally negotiated (captive) Bilaterally negotiated (captive) 7,340 Long term PPA None PPA is being pursued Long term PPA Long term PPA Bilaterally negotiated (captive) Bilaterally negotiated (captive) 375 Short term PPA Merchant sale and bilateral contracts Medium term PPA Regulated Short term PPA Merchant sale Long term PPA Regulated 693 Renewables Maharashtra, Gujarat, Madhya Pradesh, Karnataka, Tamil Nadu, Rajasthan, Andhra Pradesh and South Africa Wind farms 1,161 Long Term PPA Feed-in tariff and bid- driven contracts 2,549 Board’s Report I 15 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Fuel Source State Location Normative Capacity under management (MW) PPA Tenure Return Profile Category Total (MW) The Tata Power Company Limited Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, Telangana and Uttar Pradesh Solar Photovoltaic (PV) 1,388 Long Term PPA Feed-in tariff and bid- driven contracts 2,549 Total *500 MW capacity (Unit#6) is classified as assets held for sale Details of other businesses 10,957 (Table 3) Business Entity Returns/ Earnings Model Key details Tata Power (TPC - T), Mumbai 25-year license w.e.f. August 2015 - regulated Return on Equity Approx. 1,188 Ckms. of transmission lines, connecting generating stations to 22 receiving stations. Transmission Powerlinks Transmission Limited (PTL) Regulated Return on Equity Tata Power (TPC - D), Mumbai 25-year license w.e.f. August 2015 - Regulated Return on Equity Distribution TPDDL Regulated Return on Equity Tata Power Ajmer Distribution Limited (TPADL) Coal Investments Coal and Infrastructure, Indonesia Solar PV manufacturing, EPC Tata Power Solar Systems Limited (TPSSL) Distribution Franchisee model Returns based on dynamics in International thermal coal market Returns based on sector dynamics and market competition Power Trading Tata Power Trading Company Limited (TPTCL) in short Returns based on market term dynamics and bilateral power market subject to cap prescribed by CERC Approx. 2,328 Ckms. of 220 kV and 400 kV transmission lines to evacuate power from Eastern/North Eastern region to Northern Region. Approx. 4,500 Ckms. of distribution network. Approx. 7 lakh consumers. Approx. 15,081 Ckms. of distribution lines. Over 16.96 lakh consumers. Approx. 2,130 Ckms. of network length. Approx. 1.40 lakh 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 quantum of power. Shipping Trust Energy Resources Pte. Limited, Singapore (TERPL) Returns based on long term charters Vessels operated are of cape size. Power Services Tata Power Returns based on dynamics competition and sector market One of the leading service providers of project management, O&M and specialized services in the power sector. 16 I Board’s Report 100th Annual Report 2018-19 Percentage contribution of different business models in the Generation segment (excludes those under construction) (Table 4) Model Returns Tata Power’s Projects Fixed return on equity Fixed Tariff (Renewables) 1) Regulated Return on Equity 2) Bilateral captive agreement Feed-in-tariff Driven + Bid 1) Mumbai Operations (Trombay & Hydro), Maithon, Jojobera Unit #2 and #3, TPDDL 2) IEL (Unit 5, PH6, KPO), Jojobera Unit#1 and #4, CKP (Indonesia) Wind and Solar projects Fixed Tariff Hydro) Merchant Total (Thermal/ Bilateral agreement + Bid Driven CGPL, ITPC (Zambia) Market driven Haldia (120 MW) Dagachhu (126 MW) Capacity (MW) % of overall capacity 3,892 35.5 2,549 4,270 246 10,957 23.3 39.0 2.2 100 As part of its focus to prepare for the next phase of growth, the Company has embarked upon a plan to Simplify, Synergize and Scale-up (3S) its operations. The following key steps were taken during the year under review: a) b) c) d) e) Sale of TCL and PFL; Sale of Strategic Engineering Division (SED); Purchase of 100% shares in Energy Eastern Pte Limited (EEPL), a wholly owned subsidiary of CGPL by TERPL, a wholly owned subsidiary of the Company; Exploring opportunities to review and monetize overseas investments; Changes in organisational structure. Sale of Strategic Engineering Division Your Company decided to sell SED to Tata Advanced Systems Limited, a wholly owned subsidiary of Tata Sons Private Limited at an enterprise value of ₹ 2,230 crore. SED is engaged in the business of indigenous design, development, production, integration, supply and life cycle support of mission critical defence systems. The Company had identified this business as a non-core activity and was looking for an appropriate buyer to exploit its full potential. This sale has been approved by the Company’s shareholders and is pending approval of National Company Law tribunal (NCLT) and Ministry of Defence. The transaction is proposed to be executed on a slump sale basis. The business value is mainly derived from future projections and orders; hence, the sale consideration has been split into upfront payment and milestone-based earn outs. The upfront payment has been agreed at an enterprise value of ₹ 1,040 crore. The upfront value will be adjusted for working capital changes and any profits or losses accrued till the time of closing. The balance earnout payment of ₹ 1,190 crore is subject to receipt of identified orders spread over the next 6 years. Thermal Investment Platform – Acquisition of Prayagraj Power Generation Company Limited Resurgent Power Ventures Pte Limited is a joint venture based out of Singapore between the Company, ICICI Bank Limited and international investors such as Kuwait Investment Authority and State General Reserve Fund of Oman. The Company owns a 26 per cent stake and the balance is held by the other investors. In September 2018, Renascent Power Ventures Private Limited, a wholly owned subsidiary of Resurgent Power Ventures Pte Limited, Singapore signed a SPA with a consortium of lenders led by State Bank of India to acquire 75.01% stake in Prayagraj Power Generation Company Limited (PPGCL), which owns and operates a 1,980 MW supercritical power plant in the state of Uttar Pradesh. The project has a 25-year PPA for 90% of generated power with UP Discoms with fuel cost as pass-through and Fuel Supply Agreement (FSA) with Northern Coalfields Limited (NCL) for 90% of its fuel requirement. The matter is pending adjudication by the regulator in light of certain conditions imposed prior to transfer of the ownership of the target company. 5. SUBSIDIARIES/JOINT VENTURES/ASSOCIATES As on 31st March 2019, the Company had 50 subsidiaries (40 are wholly-owned subsidiaries), 38 Joint Ventures (JVs) and 6 Associates. Of the erstwhile subsidiaries, 3 companies have been classified as JVs under Indian Accounting Standards (Ind AS) and one of the investments has been classified as Associate. During the year under review, the following changes occurred in your Company’s holding structure: (cid:120) The entire shareholding in erstwhile associates i.e. TCL and PFL was sold during the year. Renascent Power Ventures Private Limited was incorporated in India as a 100% subsidiary to an existing associate i.e. Resurgent Power Ventures Pte Limited. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Board’s Report I 17 A report on the performance and financial position of each of the subsidiaries, JVs and Associates has been provided in Form AOC-1. subsidiaries of for determining The policy material the Company has been provided on the Company’s website at h t t p s : / / w w w . t a t a p o w e r . com/corporate/policies.aspx (alternatively, scan the adjacent QR code using a mobile device to read the policy on the Company website). 6. RESERVES As per Standalone financials, the net movement in the reserves of the Company for FY19 and FY18 is as follows: Figures in ` crore (Table 5) Particulars - Standalone Capital Redemption Reserve Capital Reserve Securities Premium Debenture Redemption Reserve General Reserve Retained Earnings As of 31st March 2019 1.85 61.66 5,634.98 421.95 3,853.98 2,954.12 As of 31st March 2018 1.85 61.66 5,634.98 1,000.61 3,853.98 1,878.99 Equity Instrument through OCI 330.48 (374.12) Statutory Reserve 660.08 660.08 The Board of Directors has decided to retain the entire amount of profits for FY19 in P&L account. 7. FOREIGN EXCHANGE - EARNINGS AND OUTGO (Table 6) Figures in ` crore FY18 FY19 116 1,336 398 1,273 1,222 1,087 4 24 Particulars – Standalone Foreign Exchange Earnings Foreign Exchange Outflow mainly on account of: (cid:120)(cid:3)(cid:3) Fuel purchase (cid:120)(cid:3) Interest on foreign currency borrowings, NRI dividends (cid:120)(cid:3) Purchase of capital equipment, components and spares and other miscellaneous expenses The Tata Power Company Limited 8.1. COASTAL GUJARAT POWER LIMITED 8.1.1. RECOMMENDATIONS OF THE HIGH-POWERED COMMITTEE (HPC) APPOINTED BY THE GOVERNMENT OF GUJARAT In order to resolve the viability issues of imported coal- based plants in the state of Gujarat, a HPC was set up by the Government of Gujarat in July 2018 and after several rounds of deliberations with various stakeholders like generators, distribution companies, consumer groups, lenders and others, it submitted its report in October 2018. Thereafter, the Government of Gujarat filed a petition with the Supreme Court of India (SC) for seeking clarification on whether the said report can be implemented and if the existing PPA can be amended. The SC clarified that the PPA can be amended if all the parties to the PPA agree to do so and its own judgement of April 2017 passed in this case shall not prevent such an amendment. It also asked CERC to consider the matter at the earliest. Accordingly, the Company has proceeded to amend the PPA with the five states to whom it is supplying power. The Company is in discussion with all the procurers to obtain their consent to the proposed amendments. 8.1.2. CHANGE IN LAW The Ministry of Environment, Forest and Climate Change, Government of India (MoEF&CC), vide its notification, has revised the environment emissions norms mandating all thermal power plants to comply with the same by 2022. CGPL’s PPA provides for considering this as a “Change in Law” event as this law was passed after the bidding date (December 2006). Your Company filed a petition with the CERC for declaring this notification as Change in Law to which the CERC has agreed. This order enables CGPL to recover through tariff, the capital cost and additional operational expenditure required to be incurred to meet the revised norms. 8.2. INDONESIAN COAL MINES The Indonesian government, in early 2018, introduced a Domestic Market Obligation (DMO) scheme which requires a local coal mining company to sell 25 percent of its production to the domestic market at a fixed price of USD 70/MT or the market rate, whichever is lower, to protect state owned power plants against rising coal prices. This impacted the sale realisation of the mines, thereby impacting their profitability. The validity of the policy is till December 2019 and the Indonesian Government will review the same thereafter. 110 162 8.3. MUMBAI OPERATIONS 8.3.1. MULTI YEAR TARIFF ORDERS OF MERC 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 FY19, none of which impact the ‘going concern’ status of your Company. Maharashtra Electricity Regulatory Commission (MERC) its Mid-Term Review (MTR) Orders for Tariff passed Determination for FY19-20 for Mumbai Generation, Transmission and Distribution Business in the month of September 2018. Review petitions, as relevant, against some of the disallowances in the orders have been filed before the appropriate forum and orders for the same 18 I Board’s Report 100th Annual Report 2018-19 have been issued. Appeals have been filed for various issues against all three orders for Generation, Transmission and Distribution and hearings are yet to commence for the same. 8.3.2. ENTRY TAX Your Company had filed a writ petition before the Bombay High Court (HC) challenging the constitutional validity of the Maharashtra Entry Tax Act and its applicability on some of our imported raw materials. HC dismissed the writ petition. Aggrieved, your Company filed Special Leave Petitions (SLP) with the SC and obtained a stay order. Thereafter, during the pendency of the SLP, the Government of Maharashtra amended the limitation period under the Entry Tax Act with retrospective effect. Aggrieved by this, your Company filed a Writ Petition in SC on the said issue. SC tagged the same along with our earlier SLP. The matter is now awaited for listing for final hearing and disposal. The Government of Maharashtra in the meanwhile, has issued an Amnesty Scheme for settlement of arrears of tax, interest and penalty levied, payable or imposed under various acts including Entry Tax. The Company has decided to avail of the scheme and, accordingly, recognized a provision of ₹ 345 crore towards settlement as per the above scheme. 8.3.3. EXTENSION OF PPA BETWEEN TPC - G and BEST MERC, vide its order dated 27th February 2018, approved extension of the validity of the PPA between Tata Power- Generation (TPC-G) and BEST for 677 MW (excluding Unit#6) till 31st March 2019. Following a re-tendering process, BEST signed an agreement on 28th March 2019 to extend the PPA with TPC-G for a period of five more years till 31st March 2024. 8.3.4. EXTENSION OF PPA BETWEEN TPC - G AND TPC - D MERC, vide its order dated 26th March 2019, approved extension of the validity of the PPA between TPC-G and Tata Power-Distribution (TPC-D) for 700 MW (excluding Unit#6) for a period of five more years till 31st March 2024. Both parties signed the PPA on 28th March 2019. 8.3.5. DEEMED CLOSURE OF 400 KV VIKROLI RECEIVING STATION AND ALLIED TRANSMISSION SCHEMES MERC, vide its order on Tata Power - Transmission’s (TPC-T) Mid Term Review (MTR) Petition, ordered deemed closure of ‘400 kV Receiving station at Vikhroli’ transmission scheme. TPC-T had filed a review petition seeking withdrawal of this deemed closure order. MERC, in January 2019, dismissed this petition and directed the State Transmission Utility (STU) to submit its recommendations regarding execution of the scheme under tariff-based bidding guidelines. TPC-T has filed an appeal before the Appellate Tribunal (APTEL) challenging the MERC order and sought expeditious disposal of the appeal. The hearings in the matter are in progress. 8.4. MAITHON POWER LIMITED (MPL) PETITION SEEKING REVERSAL OF LIQUIDATED DAMAGES CERC provisionally deducted ` 160 crore from the capital cost for expected Liquidated Damages (LD). MPL has filed a petition giving details of actual LD recovery and requested the CERC to pass the supplementary order for reversal of this deduction. 8.5. POWERLINKS TRANSMISSION LIMITED (PTL) TRUING-UP FOR FY10-14 AND MULTI YEAR TARIFF FOR FY14-19 CERC had notified a draft amendment to CERC Tariff Regulations, 2014 abolishing the continuation of transmission majoration factor for PTL. PTL had objected to such an amendment. CERC, vide its amendment notified on 30th January 2019, confirmed admissibility of transmission majoration factor to PTL for a period of 25 years from the date of issue of the transmission license. 8.6. ENVIRONMENTAL NORMS MoEF&CC, vide its notification has revised the environment emissions norms mandating all thermal power plants to comply with the same. Your Company is in the process of filing a petition with CERC seeking approval for the capital expenditure and tariff revision in lieu of the same for existing thermal units wherever applicable. 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 in this Annual Report. 10. RISK MANAGEMENT FRAMEWORK AND INTERNAL FINANCIAL CONTROLS Risk Management Framework: The Company has adopted the Risk Management Policy which can be accessed on the Company’s website at https:// www.tatapower.com/corporate/ policies.aspx (alternatively, scan the adjacent QR Code using a mobile device to read the policy on the Company website). As per the said policy, 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. The Risk Register contains the mitigation plans. Functional Risk Management Committees closely monitor and review the risk plans. As per the Listing Regulations, a Risk Management Committee (RMC) was constituted which currently comprises three Independent Directors and one Non- Executive Director. The RMC meets regularly to review critical strategic risks. Board’s Report I 19 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Company was the first power company in India to get ISO 31000:2009 Statement of Compliance in FY15. In August 2018, the British Standards Institution (BSI) did an assessment of the Company and its eight major subsidiaries and conferred the ‘Statement of Compliance’ for Tata Power Group for ISO 31000:2009. The Company also bagged two awards for its Risk Management System. The Company has obtained two copyrights for Risk Management – one for its Risk Quantification process and another for its web-based Risk Management System. Internal Financial Controls and Systems: The Company has its internal audit function which reviews and ensures sustained effectiveness of Internal Financial Controls (IFC) by adopting a systematic approach to its work. To fulfil the requirements of the Companies Act, 2013 (Act), the in-house internal audit team integrated IFC controls into risk control matrix (RCM) of enterprise processes in FY18. 100% testing of IFC controls was ensured during process audit or creating separate audit areas of IFC testing where process audits were not due. On review of the internal audit observations and action taken on audit observations, there are no adverse observations having material impact on financials, commercial implications or material non-compliances which have not been acted upon. The Company continued the Control Self-Assessment (CSA) process, which included seven Tata Power group companies this year, whereby responses of all process owners were used to assess internal controls in each process. This helps the Company to identify focus audit areas, design the audit plan and support CEO/CFO certifications for internal controls. 11. SAFETY Safety is a core value for the Company and is given topmost priority. The Company has developed and implemented standards and procedures, in order to achieve world- class safety practices. This has helped in establishing a safety culture and inculcating safe behaviour among the employees and business associates. This ensures zero harm to everyone associated with the Company’s operations directly or indirectly. The Company is committed to provide a safe and healthy working environment for its employees and associates. A Company-level occupational health and safety policy exists in line with Tata group’s occupational health and safety policy. This ensures increased vigilance and awareness on health and safety. 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. 20 I Board’s Report The Tata Power Company Limited Safety Statistics FY19: (Table 7) Sl. No 1 2 3 4 Safety Parameters in your Company’s work jurisdiction (Tata Power, CGPL, MPL, IEL, CTTL, PTL, TPDDL and TPSSL) Fatality (Number) LTIFR (Lost Time Injuries Frequency Rate per million-man hours) Total Injury Frequency Rate (No of injuries per million-man hours) Reporting of Safety Observation (higher the better) FY19 2 0.26 1.72 1,40,828 Your 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 employees or any third party, with equal gravitas and is committed to taking the entire working environment and behaviour to the highest safety standards. Your Company has increased its efforts on safety by adopting the following safety interventions in FY19 to improve safety in the organisation: (cid:120) ISO 45001:2018 certification due to Launched a campaign on Life Changing Injuries and Fatality Elimination Program (LIFE) across the Company. Received improvements in the safety management system. Used analytics for safety indices to enhance safety performance through evolved insights. Organised Best Safety Practices Conclaves for horizontal information sharing. Deployed Tata Power’s Safety Management System in JVs and Subsidiaries. Used a focussed approach on unsafe work stoppage to eliminate the hazard at source. Competency building and site safety enhancement of renewable sites. (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) 12. SUSTAINABILITY legacy of being a Taking forward the century old responsible corporate citizen, your Company continued its journey of practising sustainability in alignment with the core value of Leadership with Care. For your Company, sustainability is about care for the environment, customers and shareholders, community and for our people. The Company’s efforts on sustainability were recognized at various platforms and a testimony to this were the various awards bestowed upon it. Your Company was ranked 6th in the Responsible Business Ranking for Sustainability and CSR released in November 2018 and won the ICSI CSR Excellence Award 2018 (in medium category) conducted by the Institute of Company Secretaries of India. Your Company also bagged the 2018 CSR Award for Education and Energy Conservation constituted by Indo-American Chamber of Commerce and Industry. Your Company also got the Social Impact Award for CSR for promoting Best Sanitation Practices at Asia Level and Best Sustainable Green Initiative for the Mahseer conservation program by ACEF Forum 2018. 100th Annual Report 2018-19 12.1. CARE FOR OUR COMMUNITY/COMMUNITY RELATIONS Your Company actively worked on five thrust areas viz. education, health and sanitation, livelihood and skill building, water and financial inclusivity in which fifteen flagship interventions were undertaken in the vicinity of the Company’s business presence and beyond, while maintaining focus on Affirmative Action (AA) initiatives of the Tata group. The CSR policy of the Company the has been provided on Company’s website at https:// www.tatapower.com/corporate/ policies.aspx (alternatively, scan the adjacent QR code using a mobile device to read the policy on the Company website). The Company’s standalone CSR spend for FY19 stood at ₹ 12.66 crore against the Act requirement of ₹ 12.65 crore. Details of the consolidated CSR activities of your Company and its key subsidiaries are listed in the MD&A section of this annual report. The annual report on CSR activities (standalone) is provided in Annexure-II to this Report. 12.2. AFFIRMATIVE ACTION Under its Affirmative Action (AA) program, your Company continued to focus on upliftment of dalit and tribal communities through 5Es under AA viz. Employment, Entrepreneurship, Employability, Education and Essential Amenities around its operating sites. focus, Tata Power Skill As part of the enhanced Development Institute (TPSDI) inducted 25% trainees from AA communities and achieved more than 80% placements post-training. In total, 1.3 lakh beneficiaries were covered under AA. Around 1,050 women were covered under ‘Dhaaga’, a Women Empowerment initiative. Out of this, 20% women were from AA communities and were provided training on garment making, traditional handicrafts and other income generation initiatives which helped them generate ₹ 2,500 as average monthly income. Besides this, your Company also engaged in nurturing vendors and suppliers from AA communities to help with job creation. 12.3. CLUB ENERJI Tata Power’s Club Enerji is focused on school students to help champion the noble cause of resource conservation and to enhance moral and civic values. The Club has been working ceaselessly towards creating responsible citizens of tomorrow who focus on conserving energy and natural resources, waste management, combatting climate change and active citizenship. Yearly theme for FY19 was ‘Saying No to Plastics’. Recognizing the immense value that schools can bring to the initiative and taking due consideration of social needs, the Company started ‘Tata Power Club Enerji’ in 2007 to propagate efficient usage of energy and to educate the society on climate change issues. The program has now reached out to 553 schools across Mumbai, Delhi, Pune, Ahmedabad, Bengaluru, Kolkata, Ajmer, Belgaum, Jamshedpur, Lonavala and five more cities. It has reached out to more than 2.38 crore citizens, collectively saved 29.8 million units. All over India, 2,000 mini clubs have also been formed under the Club Enerji initiative. Some of key highlights this year include conducting rallies and skits based on resource conservation and saying no to plastics, session on urban bio diversity, a nationwide contest called “Bijli Bachao “which received more than 1,000 entries from India and abroad. Additionally, Club Enerji also collaborated with Yes Bank to spread the message of conservation across its branches. The program is also a case study in IIM Ahmedabad and has been featured at IIM-A’s TEDx event under the theme ‘Inspiring the Future’. The initiative has won several domestic and international accolades and has also been recognized as a best practice within Tata group. In FY18, Club Enerji won the ABCI award for its module on active citizenship. It also won the prestigious ET CSR Leadership award under the category ‘Cause Branding’ and PRCI (Public Relations Council of India) award for the Club’s revamped website under the ‘Digital Newsletter’ category. 12.4. SUSTAINABILITY REPORTING to Your Company has adopted the Global Reporting Initiative (GRI) Standards for its upcoming Sustainability Report for FY19, which is currently under preparation, report on sustainability performance specific to the Indian operations of your Company viz. generation, transmission and distribution. The Company’s Sustainability Reports can be accessed on the Company’s website at https://www.tatapower. com/sustainability/communication.aspx (alternatively, scan the adjacent QR code using a mobile device to read the policy on the Company website). 12.5. BUSINESS RESPONSIBILITY REPORT (BRR) The Business Responsibility Reporting is 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 FY19 as per the BRR framework, describing initiatives taken from an environmental, social and governance perspective. 12.6. PREVENTION OF SEXUAL HARASSMENT Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 have been provided in the Report on Corporate Governance as well as MD&A. 13. DIRECTORS AND KEY MANAGERIAL PERSONNEL Change in Board Composition Mr. Anil Sardana resigned as CEO & Managing Director of the Company effective close of business hours on 30th April 2018. Board’s Report I 21 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Mr. Praveer Sinha was appointed as CEO & Managing Director of the Company for a period of 5 years from 1st May 2018 to 30th April 2023. His appointment as CEO & Managing Director was approved at the 99th Annual General Meeting (AGM) by the Members. (cid:1) (cid:1) (cid:1) Mr. Ashok S. Sethi has superannuated from the services of the Company w.e.f. close of business hours on 30th April 2019, on completing 65 years of age, as per the guidelines adopted by the Company for retirement of Executive Directors. Consequently, he has ceased to be COO & Executive Director of the Company effective the said date. The Board has placed on record its deep sense of appreciation of the valuable contribution made by Mr. Sethi to the operations and growth of the Company during his long association with the Company. the recommendation of On the Nomination and Remuneration Committee (NRC), Mr. Ashok Sinha was appointed as Additional and Independent Director of the Company for a period of 5 years from 2nd May 2019 to 1st May 2024, subject to approval of the Members at the ensuing general meeting. In accordance with the requirements of the Act and the Company’s Articles of Association, Mr. Banmali Agrawala retires by rotation and is eligible for re-appointment. Members’ approval is being sought at the ensuing AGM for his re-appointment. Number of Board Meetings Seven Board Meetings were held during the year under review. For further details, please refer to the Report on Corporate Governance, which forms a part of this Annual Report. Independent Directors from all In terms of Section 149 of the Act and the Listing Regulations, Mr. Nawshir H. Mirza, Mr. Deepak M. Satwalekar, Ms. Anjali Bansal, Ms. Vibha Padalkar, Mr. Sanjay V. Bhandarkar, Mr. K. M. Chandrasekhar and Independent Directors of Mr. Ashok Sinha are the the Company as on date. The Company has received declarations Independent Directors the confirming that they meet the criteria of independence as prescribed under Section 149(6) of the Act read with rules framed thereunder and Regulation 16(1)(b) of the Listing Regulations. In terms of Regulations 25(8) of the Listing Regulations, the Independent Directors have confirmed that they are not aware of any circumstance or situation which exists or may be anticipated that could impair or impact their ability to discharge their duties. At the AGM held on 13th August 2014, Mr. Mirza and Mr. Satwalekar were appointed as Independent Directors of the Company for a period of 5 years. Thus, they will hold office till 12th August 2019. Key Managerial Personnel In terms of Section 203 of the Act, the following are the Key Managerial Personnel (KMP) of the Company as on 31st March 2019: (cid:116)(cid:1) (cid:46)(cid:83)(cid:15)(cid:1)(cid:49)(cid:83)(cid:66)(cid:87)(cid:70)(cid:70)(cid:83)(cid:1)(cid:52)(cid:74)(cid:79)(cid:73)(cid:66)(cid:13)(cid:1)(cid:36)(cid:38)(cid:48)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83) (cid:1) 22 I Board’s Report The Tata Power Company Limited (cid:116)(cid:1) (cid:46)(cid:83)(cid:15)(cid:1) (cid:34)(cid:84)(cid:73)(cid:80)(cid:76)(cid:1) (cid:52)(cid:15)(cid:1) (cid:52)(cid:70)(cid:85)(cid:73)(cid:74)(cid:13)(cid:1) (cid:36)(cid:48)(cid:48)(cid:1) (cid:7)(cid:1) (cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:1) (superannuated on 30th April 2019) (cid:46)(cid:83)(cid:15)(cid:1)(cid:51)(cid:66)(cid:78)(cid:70)(cid:84)(cid:73)(cid:1)(cid:47)(cid:15)(cid:1)(cid:52)(cid:86)(cid:67)(cid:83)(cid:66)(cid:78)(cid:66)(cid:79)(cid:90)(cid:66)(cid:78)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:70)(cid:71)(cid:1)(cid:39)(cid:74)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:48)(cid:243)(cid:68)(cid:70)(cid:83) (cid:46)(cid:83)(cid:15)(cid:1)(cid:41)(cid:66)(cid:79)(cid:80)(cid:91)(cid:1)(cid:46)(cid:15)(cid:1)(cid:46)(cid:74)(cid:84)(cid:85)(cid:83)(cid:90)(cid:13)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:52)(cid:70)(cid:68)(cid:83)(cid:70)(cid:85)(cid:66)(cid:83)(cid:90) (cid:116)(cid:1) (cid:116)(cid:1) Codes of Conduct for Directors and Employees its employees The Company has adopted a Code of Conduct for its Non-Executive Directors including a code of conduct for Independent Directors which suitably incorporates the duties of Independent Directors as laid down in the Act. The Company has also adopted the Tata Code of Conduct for including the Managing and Executive Directors. The above codes can be accessed on the Company’s website at https:// www.tatapower.com/corporate/ policies.aspx (alternatively, scan the adjacent QR Code using a mobile device to read the policy on the Company website). In terms of the Listing Regulations, all Directors and senior management personnel have affirmed compliance with their respective codes. The CEO & Managing Director has also confirmed and certified the same, which certification is provided at the end of the Report on Corporate Governance. 14. ANNUAL EVALUATION OF BOARD PERFORMANCE ITS COMMITTEES AND AND PERFORMANCE OF INDIVIDUAL DIRECTORS The Board of Directors has carried out an annual evaluation of its own performance, Board Committees and individual Directors, pursuant to the provisions of the Act and Listing Regulations. The performance of the Board was evaluated by the entire Board after seeking inputs from all the Directors on the basis of criteria such as the Board composition and structure, effectiveness of Board processes, information and functioning, etc. The performance of the Committees was evaluated after seeking inputs from the Committee members on the basis of criteria such as the composition of Committees, effectiveness of Committee meetings, etc. The above criteria are based on the Guidance Note on Board Evaluation issued by the Securities and Exchange Board of India on 5th January 2017. In a separate meeting of Independent Directors, performance of Non-Independent Directors, the Board as a whole and the Chairman of the Company after taking into account the views of Executive Directors and Non-Executive Directors, was evaluated. The Board and the NRC reviewed the performance of individual directors on the basis of criteria such as the contribution of the individual director to the Board and Committee meetings like preparedness on the issues to be discussed, meaningful and constructive contribution and inputs in meetings, etc. In the Board meeting that followed the meeting of the Independent Directors and meeting of the NRC, the performance of the Board, its Committees, and individual Directors was 100th Annual Report 2018-19 also discussed. Performance evaluation of Independent Directors was done by the entire Board, excluding the Independent Director being evaluated. Outcome of evaluation process Based on inputs received from the members, it emerged that the Board had a good mix of competency, experience, qualifications and diversity. Each Board member contributed in his/her own manner to the collective wisdom of the Board, keeping in mind his/her own background and experience. There was active participation and adequate time was given for discussing strategy. Some of the directors felt that the grievance redressal mechanism of investors etc. required to be reviewed by the Board. Overall, the Board was functioning very well in a cohesive and interactive manner. 15. 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 provided in Annexure-III to this Report and Remuneration Policy for Directors, Key Managerial Personnel and other employees of the Company, which is reproduced in Annexure-IV to this Report. 16. 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 (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Details of composition, terms of reference and number of meetings held for respective committees are given in the Report on Corporate Governance, which forms a part of this Report. Further, during the year under review, all recommendations made by the Audit Committee have been accepted by the Board. 17. 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 to this Report. 18. PARTICULARS OF EMPLOYEES AND REMUNERATION The information required under Section 197(12) of the Act read with Rule 5(1) 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 proviso 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 are 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. 19. RELATED PARTY TRANSACTIONS and Transactions In line with the requirements of the Act and the Listing Regulations, the Company has formulated a Policy on Related Party the same can be accessed on the Company’s website at https:// www.tatapower.com/corporate/ policies.aspx (alternatively, scan the adjacent QR Code using a mobile device to read the policy on the Company website). During the year under review, all transactions entered into with related parties were approved by the Audit Committee. Details of transactions with related party as per Form AOC-2 are provided in Annexure-VII to this Report. 20. DEPOSITS Sl. No. 1. 2. Particulars Accepted during the year Remained unpaid or unclaimed at the end of the year* 3. 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 (cid:131) (cid:131) (cid:131) At the beginning of the year Maximum during the year At the end of the year 4. Details of deposits which are not in compliance with the requirements of Chapter V of the Act *This amount pertains to disputed/court cases. (Table 8) Amount in ` Nil 2,58,105 NA NA Board’s Report I 23 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 21. LOANS, GUARANTEES, SECURITY AND INVESTMENTS The Company, being an infrastructure company, is exempt from the provisions as applicable to loans, guarantees, security and investments under Section 186 of the Act. Therefore, no details are provided. 22. EXTRACT OF ANNUAL RETURN Pursuant to Sections 92 & 134(3) 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 to this Report. accessed on The extracts of the Annual Return of the Company can the also be Company’s website at https:// www.tatapower.com/investor- re l a t i o n s / a n n u a l - re t u r n . p d f (alternatively, scan the adjacent QR Code using a mobile device to read the policy on the Company website). 23. STATUTORY AUDITORS At the 98th AGM held on 23rd August 2017, the Members had approved the appointment of M/s. S R B C & CO. LLP (SRBC), Chartered Accountants (ICAI Firm Registration No.324982E/E300003) as the Statutory Auditors for a period of 5 years commencing from the conclusion of the 98th AGM until the conclusion of the 103th AGM to be held in the year 2022. Pursuant to Sections 139 and 141 of the Act read with the Companies (Audit and Auditors) Rules 2014, SRBC has furnished a certificate of their eligibility and consent as the Auditors of the Company. The standalone and the consolidated financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Act. The Statutory Auditor’s report does not contain any qualifications, reservations, adverse remarks or disclaimers. The Statutory Auditors were present at the last AGM. 24. BRANCH AUDITORS Members’ approval is being sought vide Item No. 6 of the Notice, for 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. COST AUDITORS Your Board has appointed M/s. Sanjay Gupta and Associates, Cost Accountants, as Cost Auditors of the Company for conducting cost audit for FY20. A resolution seeking ratification of remuneration payable to the Cost Auditors for FY20 is provided at Item No. 7 of the Notice of the ensuing AGM. 24 I Board’s Report The Tata Power Company Limited 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 FY18, was filed on 13th August 2018 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 2018. Further, the cost accounts and records as required to be maintained under Section 148 of the Act are duly made and maintained by the Company. 26. SECRETARIAL AUDITORS 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 FY19. 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, remarks or reservations or adverse disclaimers. The Secretarial Audit Report is provided in Annexure-IX to this Report. As per the requirements of the Listing Regulations, Practicing Company Secretaries of the respective material subsidiaries of the Company have undertaken secretarial audits of these subsidiaries for FY19. The Audit Report confirms that the material subsidiaries have complied with the provisions of the Act, Rules, Regulations and Guidelines and that there were no deviations or non-compliances. 27. COMPLIANCE WITH SECRETARIAL STANDARDS The Company confirms compliance with the applicable requirements of Secretarial Standards 1 and 2. 28. CORPORATE GOVERNANCE 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 thereon 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 and Regulation 4(2)(d)(iv) of the Listing Regulations, a Whistleblower Policy and Vigil Mechanism was established for directors, 100th Annual Report 2018-19 employees and stakeholders 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 Counsellor (CEC)/Chairman of the Audit Committee of the Company for redressal. The Company has revised the Whistleblower Policy to include “reporting of incidents of leak or suspected leak of unpublished price sensitive information” in terms of SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time. The revised Policy was recommended by the Audit Committee and approved by the Board at their respective meetings. The updated policy has been posted on the Company’s website at https:// www.tatapower.com/corporate/ policies.aspx (alternatively, scan the adjacent QR Code using a mobile device to read the policy on the Company website). The Company affirms that no personnel have been denied access to the Audit Committee. 30. DIRECTORS’ RESPONSIBILITY STATEMENT Based on the framework of IFC 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 FY19. Accordingly, pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its knowledge and ability, confirm that: a) b) in the preparation of the annual accounts, the applicable accounting standards had been followed and there are no material departures; 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 c) d) e) f ) 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; the Directors had prepared the annual accounts on a going concern basis; 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 (refer section 10); 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 under review. 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 under review. Finally, we appreciate and value the contributions made by all our employees and their families for making the Company what it is. On behalf of the Board of Directors, Mumbai, 2nd May 2019 N. Chandrasekaran Chairman (DIN: 00121863) E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Board’s Report I 25 The Tata Power Company Limited Annexure – I : DIVIDEND POLICY (Ref.: Board’s Report, Section 3) 1. 1.1 2. 2.1 2.2 (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 2.3 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: (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) Each financial year end, the Company management viz. the CFO in consultation with CEO & 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 (cid:85)(cid:80)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:66)(cid:77)(cid:1)(cid:66)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:79)(cid:79)(cid:86)(cid:66)(cid:77)(cid:1)(cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:77)(cid:1)(cid:46)(cid:70)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15) (cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:37)(cid:70)(cid:67)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:51)(cid:70)(cid:69)(cid:70)(cid:78)(cid:81)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:51)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:1)(cid:34)(cid:68)(cid:85)(cid:15) (cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:36)(cid:80)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:70)(cid:79)(cid:68)(cid:74)(cid:70)(cid:84)(cid:1)(cid:51)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90)(cid:1)(cid:34)(cid:68)(cid:85)(cid:15) (cid:52)(cid:70)(cid:83)(cid:87)(cid:74)(cid:68)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:54)(cid:79)(cid:84)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:69)(cid:1)(cid:49)(cid:70)(cid:83)(cid:81)(cid:70)(cid:85)(cid:86)(cid:66)(cid:77)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:15) (cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:77)(cid:1)(cid:51)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:15) (cid:37)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:37)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:84)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:66)(cid:89)(cid:15) (cid:34)(cid:79)(cid:90)(cid:1)(cid:66)(cid:69)(cid:75)(cid:86)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:48)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:83)(cid:70)(cid:73)(cid:70)(cid:79)(cid:84)(cid:74)(cid:87)(cid:70)(cid:1)(cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:1)(cid:9)(cid:48)(cid:36)(cid:42)(cid:10)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:42)(cid:79)(cid:69)(cid:1)(cid:34)(cid:52)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:15) [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 - (cid:116)(cid:1) (cid:37)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:84)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:67)(cid:70)(cid:1)(cid:70)(cid:89)(cid:81)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:80)(cid:79)(cid:77)(cid:90)(cid:1)(cid:66)(cid:71)(cid:85)(cid:70)(cid:83)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:83)(cid:70)(cid:82)(cid:86)(cid:74)(cid:83)(cid:70)(cid:69)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:67)(cid:70)(cid:70)(cid:79)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:70)(cid:84)(cid:86)(cid:77)(cid:85)(cid:66)(cid:79)(cid:85)(cid:1) profit after the appropriations is positive and sufficient for distribution of dividends as per the parameters - financial or otherwise mentioned below in point no.(b). (cid:34)(cid:1)(cid:77)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:67)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:81)(cid:80)(cid:84)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:84)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:84)(cid:86)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:15) (cid:34)(cid:79)(cid:90)(cid:1) (cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1) (cid:66)(cid:83)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1) (cid:71)(cid:83)(cid:80)(cid:78)(cid:1) (cid:79)(cid:70)(cid:72)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1) (cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) (cid:67)(cid:70)(cid:1) (cid:70)(cid:89)(cid:81)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1) (cid:85)(cid:80)(cid:1) (cid:67)(cid:70)(cid:1) (cid:78)(cid:66)(cid:69)(cid:70)(cid:1) (cid:86)(cid:81)(cid:1) (cid:85)(cid:73)(cid:83)(cid:80)(cid:86)(cid:72)(cid:73)(cid:1) (cid:81)(cid:77)(cid:80)(cid:86)(cid:72)(cid:73)(cid:1) (cid:67)(cid:66)(cid:68)(cid:76)(cid:1) (cid:71)(cid:83)(cid:80)(cid:78)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) 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. (cid:116)(cid:1) (cid:116)(cid:1) [b] Financial Parameters would ideally include: (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:37)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:66)(cid:69)(cid:70)(cid:82)(cid:86)(cid:66)(cid:68)(cid:90)(cid:1)(cid:66)(cid:71)(cid:85)(cid:70)(cid:83)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:80)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:51)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:78)(cid:66)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:66)(cid:69)(cid:75)(cid:86)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:67)(cid:86)(cid:85)(cid:1)(cid:67)(cid:70)(cid:71)(cid:80)(cid:83)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1) dividends and tax thereon. (cid:52)(cid:81)(cid:70)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:66)(cid:69)(cid:75)(cid:86)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:9)(cid:86)(cid:81)(cid:84)(cid:74)(cid:69)(cid:70)(cid:84)(cid:16)(cid:69)(cid:80)(cid:88)(cid:79)(cid:84)(cid:74)(cid:69)(cid:70)(cid:84)(cid:10)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:66)(cid:242)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:74)(cid:79)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:74)(cid:69)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:15) (cid:41)(cid:74)(cid:84)(cid:85)(cid:80)(cid:83)(cid:74)(cid:68)(cid:66)(cid:77)(cid:1)(cid:85)(cid:83)(cid:70)(cid:79)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:69)(cid:70)(cid:68)(cid:77)(cid:66)(cid:83)(cid:70)(cid:69)(cid:1)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:81)(cid:66)(cid:84)(cid:85)(cid:1)(cid:18)(cid:17)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:84)(cid:15) (cid:53)(cid:80)(cid:85)(cid:66)(cid:77)(cid:1)(cid:81)(cid:66)(cid:90)(cid:80)(cid:86)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:85)(cid:66)(cid:89)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:66)(cid:78)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:846)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70)(cid:15)(cid:1) (cid:49)(cid:66)(cid:90)(cid:80)(cid:86)(cid:85)(cid:1)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:1)(cid:80)(cid:79)(cid:1)(cid:49)(cid:34)(cid:53)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:15) (cid:38)(cid:66)(cid:83)(cid:79)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:80)(cid:79)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:15) (cid:36)(cid:66)(cid:84)(cid:73)(cid:1)(cid:66)(cid:87)(cid:66)(cid:74)(cid:77)(cid:66)(cid:67)(cid:74)(cid:77)(cid:74)(cid:85)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:81)(cid:66)(cid:90)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:81)(cid:80)(cid:84)(cid:70)(cid:69)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:15) [c] Internal and External factors to be viewed: (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:49)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:79)(cid:84)(cid:86)(cid:74)(cid:79)(cid:72)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:15) (cid:36)(cid:80)(cid:79)(cid:84)(cid:80)(cid:77)(cid:74)(cid:69)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:72)(cid:83)(cid:80)(cid:86)(cid:81)(cid:15) (cid:52)(cid:85)(cid:66)(cid:85)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:68)(cid:80)(cid:79)(cid:80)(cid:78)(cid:90)(cid:15) (cid:36)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:83)(cid:86)(cid:77)(cid:70)(cid:84)(cid:13)(cid:1)(cid:83)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:15) (cid:51)(cid:70)(cid:84)(cid:85)(cid:83)(cid:74)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:77)(cid:66)(cid:88)(cid:84)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:66)(cid:89)(cid:1)(cid:77)(cid:66)(cid:88)(cid:84)(cid:15) (cid:56)(cid:80)(cid:83)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:68)(cid:66)(cid:81)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1)(cid:79)(cid:70)(cid:70)(cid:69)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15) (cid:49)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:73)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:84)(cid:86)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1)(cid:83)(cid:70)(cid:82)(cid:86)(cid:74)(cid:83)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:85)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:84)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15) (cid:34)(cid:69)(cid:70)(cid:82)(cid:86)(cid:66)(cid:68)(cid:90)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1)(cid:68)(cid:86)(cid:83)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:36)(cid:66)(cid:84)(cid:73)(cid:1)(cid:248)(cid:80)(cid:88)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:84)(cid:85)(cid:83)(cid:66)(cid:74)(cid:79)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:89)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:68)(cid:66)(cid:84)(cid:73)(cid:1)(cid:83)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:66)(cid:68)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1) declaration of dividends. (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 26 I Board’s Report (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 3. (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 100th Annual Report 2018-19 (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:37)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:81)(cid:66)(cid:90)(cid:14)(cid:80)(cid:86)(cid:85)(cid:1)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:84)(cid:66)(cid:78)(cid:70)(cid:1)(cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90)(cid:15) (cid:37)(cid:70)(cid:67)(cid:85)(cid:1)(cid:83)(cid:70)(cid:69)(cid:86)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:81)(cid:77)(cid:66)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15) (cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:67)(cid:86)(cid:90)(cid:14)(cid:67)(cid:66)(cid:68)(cid:76)(cid:1)(cid:81)(cid:77)(cid:66)(cid:79)(cid:13)(cid:1)(cid:74)(cid:71)(cid:1)(cid:66)(cid:79)(cid:90)(cid:15) (cid:46)(cid:80)(cid:69)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:71)(cid:86)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:81)(cid:80)(cid:84)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:67)(cid:70)(cid:1)(cid:69)(cid:70)(cid:68)(cid:77)(cid:66)(cid:83)(cid:70)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:84)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:80)(cid:83)(cid:83)(cid:80)(cid:88)(cid:74)(cid:79)(cid:72)(cid:84)(cid:16)(cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:66)(cid:68)(cid:68)(cid:83)(cid:86)(cid:66)(cid:77)(cid:84)(cid:15) (cid:47)(cid:70)(cid:68)(cid:70)(cid:84)(cid:84)(cid:74)(cid:85)(cid:90)(cid:1) (cid:85)(cid:80)(cid:1) (cid:78)(cid:66)(cid:74)(cid:79)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1) (cid:66)(cid:69)(cid:70)(cid:82)(cid:86)(cid:66)(cid:85)(cid:70)(cid:1) (cid:51)(cid:70)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:71)(cid:86)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1) (cid:36)(cid:80)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:70)(cid:79)(cid:68)(cid:74)(cid:70)(cid:84)(cid:1) (cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1) (cid:73)(cid:66)(cid:87)(cid:70)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) (cid:90)(cid:70)(cid:85)(cid:1) (cid:78)(cid:66)(cid:85)(cid:70)(cid:83)(cid:74)(cid:66)(cid:77)(cid:74)(cid:91)(cid:70)(cid:69)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:66)(cid:83)(cid:70)(cid:1) (cid:85)(cid:73)(cid:86)(cid:84)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) currently accounted for. [d] Utilisation of Retained Earnings: (cid:116)(cid:1) (cid:116)(cid:1) (cid:49)(cid:83)(cid:74)(cid:78)(cid:70)(cid:1) (cid:80)(cid:67)(cid:75)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:83)(cid:70)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1) (cid:70)(cid:66)(cid:83)(cid:79)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1) (cid:74)(cid:84)(cid:1) (cid:85)(cid:80)(cid:1) (cid:86)(cid:84)(cid:70)(cid:1) (cid:74)(cid:85)(cid:1) (cid:75)(cid:86)(cid:69)(cid:74)(cid:68)(cid:74)(cid:80)(cid:86)(cid:84)(cid:77)(cid:90)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:74)(cid:79)(cid:87)(cid:70)(cid:84)(cid:85)(cid:1) (cid:70)(cid:74)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1) (cid:74)(cid:79)(cid:1) (cid:70)(cid:89)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1) modernization not funded by consumers, new projects or growth areas approved by the Board, retiring high cost debt etc. (cid:53)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:80)(cid:79)(cid:1)(cid:67)(cid:70)(cid:73)(cid:66)(cid:77)(cid:71)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:84)(cid:13)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:84)(cid:85)(cid:83)(cid:74)(cid:87)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:72)(cid:83)(cid:80)(cid:88)(cid:1)(cid:74)(cid:85)(cid:84)(cid:1)(cid:83)(cid:70)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:70)(cid:66)(cid:83)(cid:79)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:66)(cid:85)(cid:1)(cid:66)(cid:1)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:73)(cid:74)(cid:72)(cid:73)(cid:70)(cid:83)(cid:1) than the risk free rate of return that can be earned alternatively. (cid:53)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:66)(cid:77)(cid:84)(cid:80)(cid:1)(cid:68)(cid:73)(cid:70)(cid:68)(cid:76)(cid:1)(cid:74)(cid:85)(cid:84)(cid:1)(cid:83)(cid:70)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:70)(cid:66)(cid:83)(cid:79)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:87)(cid:74)(cid:84)(cid:14)(cid:203)(cid:14)(cid:87)(cid:74)(cid:84)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:70)(cid:67)(cid:85)(cid:14)(cid:70)(cid:82)(cid:86)(cid:74)(cid:85)(cid:90)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:77)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:51)(cid:48)(cid:38)(cid:1)(cid:77)(cid:70)(cid:87)(cid:70)(cid:77)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:77)(cid:80)(cid:79)(cid:72)(cid:14)(cid:85)(cid:70)(cid:83)(cid:78)(cid:1) investors of the Company. (cid:35)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:42)(cid:79)(cid:87)(cid:70)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:48)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:86)(cid:79)(cid:74)(cid:85)(cid:90)(cid:1)(cid:67)(cid:66)(cid:77)(cid:66)(cid:79)(cid:68)(cid:70)(cid:13)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:83)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:89)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:69)(cid:70)(cid:67)(cid:85)(cid:14) 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: (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:34)(cid:79)(cid:90)(cid:1)(cid:68)(cid:86)(cid:83)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:80)(cid:83)(cid:1)(cid:71)(cid:86)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:81)(cid:83)(cid:70)(cid:71)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:85)(cid:83)(cid:70)(cid:66)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:84)(cid:13)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:74)(cid:72)(cid:73)(cid:85)(cid:84)(cid:1)(cid:78)(cid:70)(cid:79)(cid:85)(cid:74)(cid:80)(cid:79)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:74)(cid:79)(cid:13)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:66)(cid:68)(cid:68)(cid:80)(cid:83)(cid:69)(cid:70)(cid:69)(cid:1)(cid:81)(cid:83)(cid:70)(cid:71)(cid:70)(cid:83)(cid:70)(cid:79)(cid:85)(cid:74)(cid:66)(cid:77)(cid:1) dividend distribution. (cid:35)(cid:66)(cid:77)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:82)(cid:86)(cid:74)(cid:85)(cid:90)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:80)(cid:79)(cid:70)(cid:79)(cid:85)(cid:15) (cid:34)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:88)(cid:73)(cid:70)(cid:79)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:74)(cid:84)(cid:84)(cid:86)(cid:70)(cid:84)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:76)(cid:74)(cid:79)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:84)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:84)(cid:86)(cid:74)(cid:85)(cid:66)(cid:67)(cid:77)(cid:90)(cid:1)(cid:66)(cid:78)(cid:70)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:15) [f] Others (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:53)(cid:73)(cid:74)(cid:84)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:67)(cid:70)(cid:1)(cid:69)(cid:74)(cid:84)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:15) (cid:53)(cid:73)(cid:74)(cid:84)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:67)(cid:70)(cid:1)(cid:84)(cid:86)(cid:67)(cid:75)(cid:70)(cid:68)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:83)(cid:70)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:16)(cid:66)(cid:78)(cid:70)(cid:79)(cid:69)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:46)(cid:36)(cid:34)(cid:16)(cid:52)(cid:38)(cid:35)(cid:42)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:74)(cid:84)(cid:84)(cid:86)(cid:70)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:74)(cid:78)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:74)(cid:78)(cid:70)(cid:15) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:78)(cid:80)(cid:69)(cid:74)(cid:71)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:1)(cid:67)(cid:90)(cid:1)(cid:66)(cid:69)(cid:69)(cid:74)(cid:79)(cid:72)(cid:13)(cid:1)(cid:69)(cid:70)(cid:77)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:83)(cid:1)(cid:66)(cid:77)(cid:85)(cid:70)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:84)(cid:80)(cid:78)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:84)(cid:1)(cid:69)(cid:70)(cid:70)(cid:78)(cid:70)(cid:69)(cid:1)(cid:246)(cid:85)(cid:15) (cid:42)(cid:71)(cid:1) (cid:83)(cid:70)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:16)(cid:66)(cid:78)(cid:70)(cid:79)(cid:69)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1) (cid:66)(cid:83)(cid:70)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:74)(cid:84)(cid:85)(cid:70)(cid:79)(cid:85)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:70)(cid:89)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:81)(cid:83)(cid:66)(cid:68)(cid:85)(cid:74)(cid:68)(cid:70)(cid:1) (cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:70)(cid:69)(cid:1) (cid:85)(cid:73)(cid:70)(cid:79)(cid:1) (cid:84)(cid:86)(cid:68)(cid:73)(cid:1) (cid:83)(cid:70)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:16)(cid:66)(cid:78)(cid:70)(cid:79)(cid:69)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1) (cid:88)(cid:74)(cid:77)(cid:77)(cid:1) supersede and the provisions will be modified accordingly. (cid:53)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:81)(cid:83)(cid:80)(cid:81)(cid:80)(cid:84)(cid:70)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:77)(cid:74)(cid:78)(cid:74)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:20)(cid:17)(cid:6)(cid:1)(cid:85)(cid:80)(cid:1)(cid:23)(cid:17)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:86)(cid:79)(cid:77)(cid:70)(cid:84)(cid:84)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:1) policy is reviewed by the Board again. (cid:34)(cid:79)(cid:90)(cid:1)(cid:81)(cid:66)(cid:90)(cid:80)(cid:86)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:37)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:1)(cid:67)(cid:70)(cid:77)(cid:80)(cid:88)(cid:1)(cid:19)(cid:17)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:67)(cid:80)(cid:87)(cid:70)(cid:1)(cid:23)(cid:17)(cid:6)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:79)(cid:70)(cid:70)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:66)(cid:77)(cid:77)(cid:90)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) Board as an exception to the policy. 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: (cid:116)(cid:1) (cid:116)(cid:1) (cid:42)(cid:79)(cid:87)(cid:70)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:67)(cid:90)(cid:835)(cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:90)(cid:835)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:67)(cid:70)(cid:70)(cid:79)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:69)(cid:1)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)(cid:42)(cid:51)(cid:51)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:66)(cid:84)(cid:73)(cid:1)(cid:248)(cid:80)(cid:88)(cid:84)(cid:1)(cid:83)(cid:70)(cid:248)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1) the financial model used for investment approvals. (cid:34)(cid:84)(cid:1) (cid:66)(cid:1) (cid:78)(cid:66)(cid:75)(cid:80)(cid:83)(cid:74)(cid:85)(cid:90)(cid:1) (cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:835) (cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:67)(cid:70)(cid:1) (cid:68)(cid:80)(cid:79)(cid:68)(cid:70)(cid:83)(cid:79)(cid:70)(cid:69)(cid:1) (cid:66)(cid:67)(cid:80)(cid:86)(cid:85)(cid:1) (cid:78)(cid:80)(cid:69)(cid:70)(cid:1) (cid:80)(cid:71)(cid:835) (cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:84)(cid:86)(cid:83)(cid:81)(cid:77)(cid:86)(cid:84)(cid:1) (cid:68)(cid:66)(cid:84)(cid:73)(cid:1) earned by the Subsidiaries particularly because dividend is the only way to get returns on the investments made in that subsidiary. (cid:52)(cid:86)(cid:67)(cid:84)(cid:70)(cid:82)(cid:86)(cid:70)(cid:79)(cid:85)(cid:1) (cid:85)(cid:80)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:77)(cid:1) (cid:74)(cid:79)(cid:87)(cid:70)(cid:84)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:74)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:84)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:90)(cid:13)(cid:835) (cid:66)(cid:79)(cid:90)(cid:835) (cid:68)(cid:66)(cid:81)(cid:70)(cid:89)(cid:13)(cid:835) (cid:72)(cid:83)(cid:80)(cid:88)(cid:85)(cid:73)(cid:1) (cid:80)(cid:83)(cid:1) (cid:69)(cid:74)(cid:87)(cid:70)(cid:83)(cid:84)(cid:74)(cid:246)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:81)(cid:77)(cid:66)(cid:79)(cid:835) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1) needs 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. (cid:53)(cid:73)(cid:70)(cid:1) (cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:835) (cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1) (cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:835) (cid:68)(cid:80)(cid:79)(cid:87)(cid:70)(cid:90)(cid:835) (cid:85)(cid:80)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:90)(cid:1) (cid:68)(cid:80)(cid:79)(cid:68)(cid:70)(cid:83)(cid:79)(cid:70)(cid:69)(cid:13)(cid:835) (cid:74)(cid:85)(cid:84)(cid:1) (cid:66)(cid:67)(cid:74)(cid:77)(cid:74)(cid:85)(cid:90)(cid:835) (cid:9)(cid:80)(cid:83)(cid:1) (cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:88)(cid:74)(cid:84)(cid:70)(cid:10)(cid:835) (cid:85)(cid:80)(cid:1) (cid:84)(cid:86)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) 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. (cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:90)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:835)(cid:66)(cid:83)(cid:70)(cid:1)(cid:70)(cid:89)(cid:81)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:67)(cid:70)(cid:1)(cid:71)(cid:66)(cid:78)(cid:74)(cid:77)(cid:74)(cid:66)(cid:83)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:66)(cid:77)(cid:77)(cid:1)(cid:84)(cid:85)(cid:83)(cid:66)(cid:85)(cid:70)(cid:72)(cid:90)(cid:1)(cid:84)(cid:70)(cid:85)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:77)(cid:74)(cid:72)(cid:79)(cid:1)(cid:74)(cid:85)(cid:84)(cid:70)(cid:77)(cid:71)(cid:1)(cid:85)(cid:80)(cid:1) the strategic intent. (cid:34)(cid:77)(cid:77)(cid:1)(cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:16)(cid:43)(cid:55)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:70)(cid:89)(cid:81)(cid:70)(cid:68)(cid:85)(cid:70)(cid:69)(cid:835)(cid:85)(cid:80)(cid:1)(cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:74)(cid:79)(cid:68)(cid:74)(cid:81)(cid:77)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:78)(cid:66)(cid:89)(cid:74)(cid:78)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:835)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:70)(cid:79)(cid:69)(cid:835)(cid:81)(cid:66)(cid:90)(cid:80)(cid:86)(cid:85)(cid:1)(cid:86)(cid:79)(cid:77)(cid:70)(cid:84)(cid:84)(cid:835)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:1)(cid:81)(cid:86)(cid:83)(cid:81)(cid:80)(cid:84)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1) retaining the funds is identified and agreed to with the Parent in its capacity as shareholder. (cid:34)(cid:84)(cid:1)(cid:71)(cid:66)(cid:83)(cid:1)(cid:66)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1)(cid:52)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:68)(cid:70)(cid:83)(cid:79)(cid:70)(cid:69)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:49)(cid:66)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:81)(cid:77)(cid:66)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:80)(cid:77)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1) advising the concerned Subsidiary of the usage of surplus funds of course the basic principles underlying remaining the same as above. (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) Board’s Report I 27 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Annexure – II : Annual Report on CSR Activities (Ref.: Board’s Report, Section 12.1) Tata Power CSR Policy outlines five thrust areas for community development: 1. A brief outline of the company’s CSR policy, including an overview of projects or programs proposed to be undertaken and a reference to the web-link to the CSR policy and projects or programs. (cid:120) Education (cid:120) Livelihood & Skill Building (cid:120)(cid:1) (cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:9)(cid:71)(cid:80)(cid:83)(cid:1)(cid:69)(cid:83)(cid:74)(cid:79)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:7)(cid:1)(cid:74)(cid:83)(cid:83)(cid:74)(cid:72)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:10) (cid:120) Health and Sanitation (cid:120) Financial Inclusivity The Company focussed on synergy, scale and simplification for process (cid:74)(cid:78)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:15)(cid:1) (cid:18)(cid:22)(cid:1) (cid:248)(cid:66)(cid:72)(cid:84)(cid:73)(cid:74)(cid:81)(cid:1) (cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1) (cid:66)(cid:68)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1) (cid:77)(cid:80)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) (cid:73)(cid:70)(cid:77)(cid:81)(cid:70)(cid:69)(cid:1) (cid:66)(cid:68)(cid:73)(cid:74)(cid:70)(cid:87)(cid:70)(cid:1) (cid:84)(cid:68)(cid:66)(cid:77)(cid:70)(cid:1) and deliver sustainable results and change to the communities. Tata Power Community Development Trust (TPCDT) has internal capabilities to execute (cid:36)(cid:52)(cid:51)(cid:1)(cid:81)(cid:83)(cid:80)(cid:72)(cid:83)(cid:66)(cid:78)(cid:84)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:77)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:70)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:77)(cid:90)(cid:15)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1)(cid:36)(cid:52)(cid:51)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) overview of projects or programs undertaken or proposed to be undertaken, is provided on the Company’s website. 2. The composition of the CSR Committee Mr. Deepak M. Satwalekar Ms. Anjali Bansal, Chairperson Mr. Praveer Sinha 3. 4. Average net profit of the company for last three financial years. (cid:846)(cid:1)(cid:23)(cid:20)(cid:19)(cid:15)(cid:21)(cid:26)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) Prescribed CSR Expenditure (two percent of the amount as in item 3 above) (cid:846)(cid:1)(cid:18)(cid:19)(cid:15)(cid:23)(cid:22)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) 5. Details of CSR spend during the financial year (a) Total amount to be spent for the financial year (cid:846)(cid:1)(cid:18)(cid:19)(cid:15)(cid:23)(cid:23)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) (b) Amount unspent, if any (cid:47)(cid:74)(cid:77) (c) Manner in which the amount spent during the financial year Detailed overleaf 28 I Board’s Report 100th Annual Report 2018-19 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) Cumulative expenditure upto the reporting period (as on 31.03.2019) (` in lakh) Amount spent: Direct or through implementing agency i ii Education Promotion of Education 125 125 1,427 Livelihood & Skill Building (Focus Areas: Skill Development, (cid:55)(cid:80)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1) training, Promote Livelihood practices among (cid:71)(cid:66)(cid:83)(cid:78)(cid:70)(cid:83)(cid:84)(cid:16)(cid:1) fishermen, Income (cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) activities for (cid:56)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1)(cid:52)(cid:70)(cid:77)(cid:71)(cid:1) (cid:41)(cid:70)(cid:77)(cid:81)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81)(cid:84)(cid:10) Livelihood enhancement projects; Promoting gender equality, empowering women and measures for reducing inequalities faced by socially and economically backward groups Local Areas (cid:120) Maval, Mulshi (Hydros) (cid:120) Trombay, T&D License Area (cid:120) Jojobera (cid:120) Mundra (cid:120)(cid:3)Dehrand State: (cid:120) Maharashtra (cid:120) Jharkhand (cid:120)(cid:1)(cid:40)(cid:86)(cid:75)(cid:66)(cid:83)(cid:66)(cid:85) 550 550 (cid:22)(cid:13)(cid:20)(cid:21)(cid:26) District: (cid:120) Pune (cid:120) Mumbai (cid:120) Singhbhum East (cid:120) Saraikela-Kharsawan (cid:120) Kutch 141 141 153 Direct: Tata Power Implementation Agency (internal): (cid:120) Tata Power Community Development Trust (TPCDT) (cid:120) Employee (cid:55)(cid:80)(cid:77)(cid:86)(cid:79)(cid:85)(cid:70)(cid:70)(cid:83)(cid:84) Implementation Agency (external): (cid:120)(cid:1)(cid:1)(cid:40)(cid:80)(cid:87)(cid:70)(cid:83)(cid:79)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) Agencies (cid:120) Local Panchayats (cid:120) Zilla Parishad (cid:120)(cid:1)(cid:47)(cid:40)(cid:48)(cid:84) (cid:120) Skill Development Agencies iii (cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1) (Drinking & Irrigation) iv v vi Health & Sanitation Financial Inclusivity Affirmative Action (AA) Sports and Others Total Promoting Preventive healthcare and sanitation and making available safe drinking water Education, Employability, Entrepreneurship, Essential Amenities, Sports, and Community Engagement 127 127 1,305 (cid:120) Other Resource Agencies 74 74 74 (cid:19)(cid:21)(cid:26) (cid:19)(cid:21)(cid:26) 2,776 1,266 1,266 11,083 Board’s Report I (cid:19)(cid:26) I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) (cid:1) (cid:3) (cid:3) (cid:3) (cid:3) Key Highlights of the CSR Program (cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:8)(cid:84)(cid:1)(cid:36)(cid:52)(cid:51)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:83)(cid:70)(cid:66)(cid:68)(cid:73)(cid:70)(cid:69)(cid:1)(cid:80)(cid:86)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:18)(cid:20)(cid:15)(cid:24)(cid:23)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1)(cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:68)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:68)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1)(cid:19)(cid:19)(cid:22)(cid:1)(cid:87)(cid:74)(cid:77)(cid:77)(cid:66)(cid:72)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:46)(cid:66)(cid:73)(cid:66)(cid:83)(cid:66)(cid:84)(cid:73)(cid:85)(cid:83)(cid:66)(cid:13)(cid:1)(cid:40)(cid:86)(cid:75)(cid:66)(cid:83)(cid:66)(cid:85)(cid:13)(cid:1)(cid:43)(cid:73)(cid:66)(cid:83)(cid:76)(cid:73)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) (cid:56)(cid:70)(cid:84)(cid:85)(cid:1)(cid:35)(cid:70)(cid:79)(cid:72)(cid:66)(cid:77)(cid:15)(cid:1)(cid:53)(cid:73)(cid:83)(cid:86)(cid:84)(cid:85)(cid:1)(cid:66)(cid:83)(cid:70)(cid:66)(cid:14)(cid:88)(cid:74)(cid:84)(cid:70)(cid:1)(cid:69)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:84)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:66)(cid:84)(cid:1)(cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:84)(cid:27) (cid:37)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:38)(cid:69)(cid:86)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:9)(cid:55)(cid:42)(cid:37)(cid:58)(cid:34)(cid:10)(cid:27) (cid:120)(cid:1) (cid:120)(cid:1)(cid:1) (cid:120) (cid:37)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:41)(cid:70)(cid:66)(cid:77)(cid:85)(cid:73)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:52)(cid:66)(cid:79)(cid:74)(cid:85)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:9)(cid:34)(cid:51)(cid:48)(cid:40)(cid:58)(cid:34)(cid:10)(cid:27) (cid:120) (cid:120) (cid:120) (cid:19)(cid:24)(cid:13)(cid:21)(cid:26)(cid:20)(cid:1)(cid:84)(cid:85)(cid:86)(cid:69)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:88)(cid:70)(cid:83)(cid:70)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:70)(cid:14)(cid:55)(cid:74)(cid:69)(cid:90)(cid:66)(cid:1)(cid:9)(cid:37)(cid:74)(cid:72)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1)(cid:45)(cid:70)(cid:66)(cid:83)(cid:79)(cid:74)(cid:79)(cid:72)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:55)(cid:74)(cid:69)(cid:90)(cid:66)(cid:1)(cid:52)(cid:66)(cid:72)(cid:66)(cid:83)(cid:1)(cid:9)(cid:51)(cid:70)(cid:78)(cid:70)(cid:69)(cid:74)(cid:66)(cid:77)(cid:1)(cid:36)(cid:80)(cid:66)(cid:68)(cid:73)(cid:74)(cid:79)(cid:72)(cid:10)(cid:1)(cid:66)(cid:68)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:77)(cid:80)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:15) (cid:53)(cid:73)(cid:70)(cid:1)(cid:66)(cid:68)(cid:66)(cid:69)(cid:70)(cid:78)(cid:74)(cid:68)(cid:1)(cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:74)(cid:78)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:23)(cid:21)(cid:6)(cid:1)(cid:66)(cid:77)(cid:80)(cid:79)(cid:72)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:83)(cid:70)(cid:69)(cid:86)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:74)(cid:79)(cid:1)(cid:69)(cid:83)(cid:80)(cid:81)(cid:80)(cid:86)(cid:85)(cid:1)(cid:83)(cid:66)(cid:85)(cid:70)(cid:15) During the year, innovative learning methodologies adopted included STEM learning 57,271 women and children were covered under maternal and child health initiatives. Focus was on adolescent girls and youth to enhance awareness on life skill education and anaemia control. Collaboration with stakeholders and government to promote sanitation resulted in improvement in adoption of best sanitation practices by the community. The community led sanitation project converged with Swachh Bharat Abhiyaan to enable construction and usage of toilets resulting in making nearby villages open defecation free. (cid:3) (cid:3) (cid:3) (cid:1) (cid:3) (cid:3) (cid:3) (cid:120) Details of Livelihood (SAMRIDDHI) and Skill Building (DAKSH) Initiatives: (cid:120) (cid:120) (cid:120)(cid:1) (cid:120)(cid:1) (cid:120)(cid:1) 1.55 lakh women, youth, farmers and fishermen were covered under Livelihood and Skill building initiatives with key focus on women micro enterprise development. Focus on integrated agriculture initiatives included SRI techniques, low water consuming cropping pattern, vermicompost, and micro-irrigation promotion. (cid:53)(cid:66)(cid:85)(cid:66)(cid:1) (cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1) (cid:52)(cid:76)(cid:74)(cid:77)(cid:77)(cid:1) (cid:37)(cid:70)(cid:87)(cid:70)(cid:77)(cid:80)(cid:81)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:42)(cid:79)(cid:84)(cid:85)(cid:74)(cid:85)(cid:86)(cid:85)(cid:70)(cid:1) (cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1) (cid:78)(cid:80)(cid:83)(cid:70)(cid:1) (cid:85)(cid:73)(cid:66)(cid:79)(cid:1) (cid:19)(cid:18)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) (cid:90)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:25)(cid:17)(cid:6)(cid:1) (cid:81)(cid:77)(cid:66)(cid:68)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:81)(cid:80)(cid:84)(cid:85)(cid:1) (cid:85)(cid:83)(cid:66)(cid:74)(cid:79)(cid:74)(cid:79)(cid:72)(cid:1) (cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1) (cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:70)(cid:69)(cid:1)(cid:19)(cid:22)(cid:6)(cid:1)(cid:90)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:34)(cid:243)(cid:83)(cid:78)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:86)(cid:79)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:15) (cid:46)(cid:80)(cid:83)(cid:70)(cid:1)(cid:85)(cid:73)(cid:66)(cid:79)(cid:1)(cid:24)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1)(cid:88)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1)(cid:88)(cid:70)(cid:83)(cid:70)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:56)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1)(cid:52)(cid:70)(cid:77)(cid:71)(cid:1)(cid:41)(cid:70)(cid:77)(cid:81)(cid:1)(cid:72)(cid:83)(cid:80)(cid:86)(cid:81)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:46)(cid:74)(cid:68)(cid:83)(cid:80)(cid:1)(cid:38)(cid:79)(cid:85)(cid:70)(cid:83)(cid:81)(cid:83)(cid:74)(cid:84)(cid:70)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:37)(cid:73)(cid:66)(cid:66)(cid:72)(cid:66)(cid:1) (cid:9)(cid:72)(cid:66)(cid:83)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:73)(cid:66)(cid:79)(cid:69)(cid:74)(cid:68)(cid:83)(cid:66)(cid:71)(cid:85)(cid:1)(cid:78)(cid:66)(cid:76)(cid:74)(cid:79)(cid:72)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:34)(cid:67)(cid:73)(cid:66)(cid:1)(cid:9)(cid:56)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1)(cid:38)(cid:78)(cid:81)(cid:80)(cid:88)(cid:70)(cid:83)(cid:78)(cid:70)(cid:79)(cid:85)(cid:10)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:15) (cid:34)(cid:67)(cid:73)(cid:66)(cid:1)(cid:9)(cid:56)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1)(cid:70)(cid:78)(cid:81)(cid:80)(cid:88)(cid:70)(cid:83)(cid:78)(cid:70)(cid:79)(cid:85)(cid:10)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:53)(cid:49)(cid:37)(cid:37)(cid:45)(cid:13)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:83)(cid:70)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:85)(cid:80)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:1)(cid:66)(cid:69)(cid:69)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:22)(cid:17)(cid:17)(cid:1)(cid:88)(cid:80)(cid:78)(cid:70)(cid:79)(cid:15)(cid:1)(cid:42)(cid:79)(cid:1)(cid:85)(cid:80)(cid:85)(cid:66)(cid:77)(cid:13)(cid:1) 1,341 women covered under this initiative. TPSDI has also adopted this concept and rolled outskill training exclusively for women (cid:37)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:9)(cid:34)(cid:78)(cid:83)(cid:86)(cid:85)(cid:69)(cid:73)(cid:66)(cid:83)(cid:66)(cid:10)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:27) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:24)(cid:15)(cid:21)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1)(cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:68)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:88)(cid:70)(cid:83)(cid:70)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:42)(cid:79)(cid:85)(cid:70)(cid:72)(cid:83)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:51)(cid:70)(cid:84)(cid:80)(cid:86)(cid:83)(cid:68)(cid:70)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:69)(cid:83)(cid:74)(cid:79)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:88)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:15) Focus on drinking water at schools and village household level included RO plant installation and recharging of bore wells. (cid:46)(cid:80)(cid:54)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:84)(cid:74)(cid:72)(cid:79)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:47)(cid:34)(cid:35)(cid:34)(cid:51)(cid:37)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:36)(cid:80)(cid:77)(cid:77)(cid:66)(cid:67)(cid:80)(cid:83)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:74)(cid:79)(cid:1)(cid:83)(cid:70)(cid:78)(cid:80)(cid:85)(cid:70)(cid:1)(cid:77)(cid:80)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:46)(cid:66)(cid:73)(cid:66)(cid:83)(cid:66)(cid:84)(cid:73)(cid:85)(cid:83)(cid:66)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:18)(cid:17)(cid:17)(cid:1) hectares of area. Details of Financial Inclusivity (Adhikaar) (cid:120)(cid:1) (cid:18)(cid:15)(cid:26)(cid:22)(cid:1) (cid:77)(cid:66)(cid:76)(cid:73)(cid:1) (cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:68)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1) (cid:88)(cid:70)(cid:83)(cid:70)(cid:1) (cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1) (cid:74)(cid:79)(cid:1) (cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1) (cid:71)(cid:66)(cid:68)(cid:74)(cid:77)(cid:74)(cid:85)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:66)(cid:88)(cid:66)(cid:83)(cid:70)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1) (cid:67)(cid:86)(cid:74)(cid:77)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) (cid:88)(cid:66)(cid:84)(cid:1) (cid:69)(cid:80)(cid:79)(cid:70)(cid:1) (cid:67)(cid:90)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1) (cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1) (cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1) facilitated access to various state and central government schemes. (cid:120) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) CSR Awards and Recognition received in FY19 (cid:3) (cid:3) (cid:3) (cid:3) (cid:3) ICSI CSR Excellence Award 2018 to Tata Power (Mid Company Segment) (cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:83)(cid:66)(cid:79)(cid:76)(cid:70)(cid:69)(cid:1)(cid:23)(cid:85)(cid:73)(cid:1)(cid:9)(cid:80)(cid:87)(cid:70)(cid:83)(cid:66)(cid:77)(cid:77)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:18)(cid:84)(cid:85)(cid:1)(cid:9)(cid:54)(cid:85)(cid:74)(cid:77)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:84)(cid:70)(cid:72)(cid:78)(cid:70)(cid:79)(cid:85)(cid:10)(cid:1)(cid:74)(cid:79)(cid:1)(cid:47)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:51)(cid:70)(cid:84)(cid:81)(cid:80)(cid:79)(cid:84)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:35)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:51)(cid:66)(cid:79)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:1)(cid:14)(cid:1)(cid:42)(cid:42)(cid:46)(cid:1)(cid:54)(cid:69)(cid:66)(cid:74)(cid:81)(cid:86)(cid:83) Tata Power Affirmative Action Jury Award 2018 (cid:42)(cid:79)(cid:69)(cid:80)(cid:1)(cid:14)(cid:1)(cid:54)(cid:52)(cid:1)(cid:36)(cid:73)(cid:66)(cid:78)(cid:67)(cid:70)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:70)(cid:83)(cid:68)(cid:70)(cid:1)(cid:36)(cid:52)(cid:51)(cid:1)(cid:34)(cid:88)(cid:66)(cid:83)(cid:69)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:81)(cid:83)(cid:80)(cid:78)(cid:80)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:38)(cid:69)(cid:86)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:36)(cid:80)(cid:79)(cid:84)(cid:70)(cid:83)(cid:87)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:67)(cid:70)(cid:84)(cid:85)(cid:1)(cid:81)(cid:83)(cid:66)(cid:68)(cid:85)(cid:74)(cid:68)(cid:70)(cid:84)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:15) Asian Communication Engagement Forum – CSR Award 2018 for Corporate Community Partnership Category (Sanitation Initiative). Sandvik Award for promoting Sustainable Agriculture based Livelihood at regional level. (cid:51)(cid:70)(cid:84)(cid:81)(cid:80)(cid:79)(cid:84)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:45)(cid:70)(cid:66)(cid:69)(cid:70)(cid:83)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:35)(cid:70)(cid:84)(cid:85)(cid:1)(cid:52)(cid:49)(cid:48)(cid:36)(cid:1)(cid:68)(cid:66)(cid:85)(cid:70)(cid:72)(cid:80)(cid:83)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:81)(cid:83)(cid:80)(cid:78)(cid:80)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:55)(cid:80)(cid:77)(cid:86)(cid:79)(cid:85)(cid:70)(cid:70)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:56)(cid:70)(cid:70)(cid:76) (cid:120) (cid:120)(cid:1) 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 (cid:3) (cid:3) 6. 7. 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 (cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:17)(cid:19)(cid:17)(cid:24)(cid:24)(cid:21)(cid:23)(cid:10)(cid:1) 30 I Board’s Report (cid:47)(cid:80)(cid:85)(cid:1)(cid:34)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70) The Committee hereby confirms that the implementation and monitoring of the CSR Policy is in compliance with CSR objectives and Policy of the Company Praveer Sinha CEO & Managing Director (cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:18)(cid:24)(cid:25)(cid:22)(cid:18)(cid:23)(cid:21)(cid:10) 100th Annual Report 2018-19 Annexure – III : POLICY ON BOARD DIVERSITY AND DIRECTOR ATTRIBUTES (Ref.: Board’s Report, Section 15) 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’). (cid:53)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:72)(cid:79)(cid:74)(cid:84)(cid:70)(cid:84)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:69)(cid:74)(cid:87)(cid:70)(cid:83)(cid:84)(cid:74)(cid:85)(cid:90)(cid:1)(cid:66)(cid:85)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:77)(cid:70)(cid:87)(cid:70)(cid:77)(cid:1)(cid:74)(cid:84)(cid:1)(cid:66)(cid:1)(cid:79)(cid:70)(cid:68)(cid:70)(cid:84)(cid:84)(cid:66)(cid:83)(cid:90)(cid:1)(cid:83)(cid:70)(cid:82)(cid:86)(cid:74)(cid:83)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:74)(cid:79)(cid:1)(cid:70)(cid:79)(cid:84)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:15)(cid:1)(cid:34)(cid:1)(cid:78)(cid:74)(cid:89)(cid:1)(cid:80)(cid:71)(cid:1)(cid:70)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1) independent and other non-executive directors is one important facet of diverse attributes that the company desires. Further, (cid:66)(cid:1)(cid:69)(cid:74)(cid:87)(cid:70)(cid:83)(cid:84)(cid:70)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:83)(cid:70)(cid:81)(cid:83)(cid:70)(cid:84)(cid:70)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:69)(cid:74)(cid:242)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:69)(cid:86)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:82)(cid:86)(cid:66)(cid:77)(cid:74)(cid:246)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:76)(cid:79)(cid:80)(cid:88)(cid:77)(cid:70)(cid:69)(cid:72)(cid:70)(cid:13)(cid:1)(cid:70)(cid:89)(cid:81)(cid:70)(cid:83)(cid:74)(cid:70)(cid:79)(cid:68)(cid:70)(cid:13)(cid:1)(cid:72)(cid:70)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:66)(cid:72)(cid:70)(cid:13)(cid:1)(cid:85)(cid:73)(cid:80)(cid:86)(cid:72)(cid:73)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) perspective results in delivering a competitive advantage and a better appreciation of the interests of stakeholders. These (cid:69)(cid:74)(cid:242)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:67)(cid:66)(cid:77)(cid:66)(cid:79)(cid:68)(cid:70)(cid:69)(cid:1)(cid:66)(cid:72)(cid:66)(cid:74)(cid:79)(cid:84)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:79)(cid:70)(cid:70)(cid:69)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:1)(cid:68)(cid:80)(cid:73)(cid:70)(cid:84)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:15)(cid:1)(cid:34)(cid:77)(cid:77)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:66)(cid:81)(cid:81)(cid:80)(cid:74)(cid:79)(cid:85)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:80)(cid:79)(cid:1)(cid:78)(cid:70)(cid:83)(cid:74)(cid:85)(cid:1) 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 (cid:1) (cid:53)(cid:73)(cid:70)(cid:1) (cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1) (cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:73)(cid:66)(cid:87)(cid:70)(cid:1) (cid:66)(cid:1) (cid:78)(cid:74)(cid:89)(cid:1) (cid:80)(cid:71)(cid:1) (cid:78)(cid:70)(cid:78)(cid:67)(cid:70)(cid:83)(cid:84)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:69)(cid:74)(cid:242)(cid:70)(cid:83)(cid:70)(cid:79)(cid:85)(cid:1) (cid:70)(cid:69)(cid:86)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1) (cid:82)(cid:86)(cid:66)(cid:77)(cid:74)(cid:246)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1) (cid:76)(cid:79)(cid:80)(cid:88)(cid:77)(cid:70)(cid:69)(cid:72)(cid:70)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:66)(cid:69)(cid:70)(cid:82)(cid:86)(cid:66)(cid:85)(cid:70)(cid:1) 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 (cid:1) (cid:1) (cid:1) (cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:66)(cid:79)(cid:90)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:81)(cid:70)(cid:68)(cid:86)(cid:79)(cid:74)(cid:66)(cid:83)(cid:90)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:73)(cid:74)(cid:81)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:74)(cid:85)(cid:84)(cid:1)(cid:84)(cid:86)(cid:67)(cid:84)(cid:74)(cid:69)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:13)(cid:1)(cid:66)(cid:84)(cid:84)(cid:80)(cid:68)(cid:74)(cid:66)(cid:85)(cid:70)(cid:84)(cid:1)(cid:80)(cid:83)(cid:1) joint ventures and the company’s promoters, besides sitting fees and commission. (cid:53)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:66)(cid:79)(cid:90)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:74)(cid:83)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:9)(cid:66)(cid:84)(cid:1)(cid:69)(cid:70)(cid:246)(cid:79)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:51)(cid:86)(cid:77)(cid:70)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:10)(cid:1)(cid:66)(cid:84)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:80)(cid:83)(cid:1) employees or other stakeholders (other than with immaterial dealings) of the company, its subsidiaries, associates or joint ventures. (cid:53)(cid:73)(cid:70)(cid:1) (cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1) (cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:78)(cid:66)(cid:74)(cid:79)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1) (cid:66)(cid:79)(cid:1) (cid:66)(cid:83)(cid:78)(cid:8)(cid:84)(cid:1) (cid:77)(cid:70)(cid:79)(cid:72)(cid:85)(cid:73)(cid:1) (cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:73)(cid:74)(cid:81)(cid:1) (cid:67)(cid:70)(cid:85)(cid:88)(cid:70)(cid:70)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:78)(cid:84)(cid:70)(cid:77)(cid:87)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) 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. (cid:53)(cid:73)(cid:70)(cid:1) (cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1) (cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:79)(cid:80)(cid:85)(cid:1) (cid:67)(cid:70)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:84)(cid:86)(cid:67)(cid:75)(cid:70)(cid:68)(cid:85)(cid:1) (cid:80)(cid:71)(cid:1) (cid:66)(cid:77)(cid:77)(cid:70)(cid:72)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:74)(cid:77)(cid:77)(cid:70)(cid:72)(cid:66)(cid:77)(cid:1) (cid:80)(cid:83)(cid:1) (cid:86)(cid:79)(cid:70)(cid:85)(cid:73)(cid:74)(cid:68)(cid:66)(cid:77)(cid:1) (cid:67)(cid:70)(cid:73)(cid:66)(cid:87)(cid:74)(cid:80)(cid:86)(cid:83)(cid:13)(cid:1) (cid:74)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:74)(cid:83)(cid:1) (cid:81)(cid:83)(cid:74)(cid:87)(cid:66)(cid:85)(cid:70)(cid:1) (cid:80)(cid:83)(cid:1) professional lives. (cid:116)(cid:1) (cid:1) Role of the Nomination and Remuneration Committee (cid:53)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:66)(cid:67)(cid:74)(cid:77)(cid:74)(cid:85)(cid:90)(cid:1)(cid:85)(cid:80)(cid:1)(cid:69)(cid:70)(cid:87)(cid:80)(cid:85)(cid:70)(cid:1)(cid:84)(cid:86)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1)(cid:85)(cid:74)(cid:78)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:242)(cid:66)(cid:74)(cid:83)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15) (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:80)(cid:78)(cid:74)(cid:79)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:51)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:85)(cid:85)(cid:70)(cid:70)(cid:1)(cid:9)(cid:65)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:8)(cid:10)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:83)(cid:70)(cid:87)(cid:74)(cid:70)(cid:88)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:84)(cid:84)(cid:70)(cid:84)(cid:84)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:80)(cid:84)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:88)(cid:73)(cid:74)(cid:77)(cid:84)(cid:85)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) the appointment or reappointment of independent directors. 1. 1.1 (cid:18)(cid:15)(cid:19)(cid:1) 2. 2.1 (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 3. (cid:20)(cid:15)(cid:18)(cid:1) 4. Review of the Policy (cid:21)(cid:15)(cid:18)(cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:83)(cid:70)(cid:87)(cid:74)(cid:70)(cid:88)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:1)(cid:81)(cid:70)(cid:83)(cid:74)(cid:80)(cid:69)(cid:74)(cid:68)(cid:66)(cid:77)(cid:77)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:1)(cid:83)(cid:70)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:74)(cid:69)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:15) Board’s Report I 31 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Annexure – IV : REMUNERATION POLICY FOR DIRECTORS, KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES (Ref.: Board’s Report, Section 15) 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 (cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:18)(cid:26)(cid:1) (cid:83)(cid:70)(cid:66)(cid:69)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:49)(cid:66)(cid:83)(cid:85)(cid:1) (cid:37)(cid:1) (cid:80)(cid:71)(cid:1) (cid:52)(cid:68)(cid:73)(cid:70)(cid:69)(cid:86)(cid:77)(cid:70)(cid:1) (cid:42)(cid:42)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1) (cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1) (cid:80)(cid:71)(cid:1) (cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1) (cid:9)(cid:45)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:48)(cid:67)(cid:77)(cid:74)(cid:72)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:37)(cid:74)(cid:84)(cid:68)(cid:77)(cid:80)(cid:84)(cid:86)(cid:83)(cid:70)(cid:1) Requirements) Regulations, 2015 (“Listing Regulations”). In case of any inconsistency between the provisions of law and this (cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:77)(cid:66)(cid:88)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:81)(cid:83)(cid:70)(cid:87)(cid:66)(cid:74)(cid:77)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:66)(cid:67)(cid:74)(cid:69)(cid:70)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:77)(cid:66)(cid:88)(cid:15)(cid:1)(cid:56)(cid:73)(cid:74)(cid:77)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:78)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:1) (cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:80)(cid:78)(cid:74)(cid:79)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:51)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:85)(cid:85)(cid:70)(cid:70)(cid:1)(cid:9)(cid:105)(cid:47)(cid:51)(cid:36)(cid:119)(cid:10)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:74)(cid:69)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:71)(cid:66)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:77)(cid:66)(cid:74)(cid:69)(cid:1)(cid:69)(cid:80)(cid:88)(cid:79)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:18)(cid:24)(cid:25)(cid:9)(cid:21)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1) 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 directors, key managerial personnel and senior management involves a balance between fixed and incentive (cid:81)(cid:66)(cid:90)(cid:1)(cid:83)(cid:70)(cid:248)(cid:70)(cid:68)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:84)(cid:73)(cid:80)(cid:83)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:77)(cid:80)(cid:79)(cid:72)(cid:14)(cid:85)(cid:70)(cid:83)(cid:78)(cid:1)(cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:80)(cid:67)(cid:75)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:81)(cid:83)(cid:74)(cid:66)(cid:85)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:88)(cid:80)(cid:83)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:74)(cid:85)(cid:84)(cid:1)(cid:72)(cid:80)(cid:66)(cid:77)(cid:84)(cid:15)(cid:119) Key principles governing this remuneration policy are as follows: (cid:122) Remuneration for independent directors and non-independent non-executive directors (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:80)(cid:1) (cid:80)(cid:1) o (cid:80)(cid:1) o o (cid:80)(cid:1) (cid:80)(cid:1) o (cid:42)(cid:79)(cid:69)(cid:70)(cid:81)(cid:70)(cid:79)(cid:69)(cid:70)(cid:79)(cid:85)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:9)(cid:105)(cid:42)(cid:37)(cid:119)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:79)(cid:80)(cid:79)(cid:14)(cid:74)(cid:79)(cid:69)(cid:70)(cid:81)(cid:70)(cid:79)(cid:69)(cid:70)(cid:79)(cid:85)(cid:1)(cid:79)(cid:80)(cid:79)(cid:14)(cid:70)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:9)(cid:105)(cid:47)(cid:38)(cid:37)(cid:119)(cid:10)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:67)(cid:70)(cid:1)(cid:81)(cid:66)(cid:74)(cid:69)(cid:1)(cid:84)(cid:74)(cid:85)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:70)(cid:70)(cid:84)(cid:1)(cid:9)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:85)(cid:85)(cid:70)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) the meetings of the Board and of committees of which they may be members) and commission within regulatory limits. (cid:56)(cid:74)(cid:85)(cid:73)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:66)(cid:83)(cid:66)(cid:78)(cid:70)(cid:85)(cid:70)(cid:83)(cid:84)(cid:1)(cid:81)(cid:83)(cid:70)(cid:84)(cid:68)(cid:83)(cid:74)(cid:67)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:77)(cid:66)(cid:88)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:66)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:84)(cid:74)(cid:85)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:71)(cid:70)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1) 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). (cid:48)(cid:87)(cid:70)(cid:83)(cid:66)(cid:77)(cid:77)(cid:1) (cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:84)(cid:73)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1) (cid:67)(cid:70)(cid:1) (cid:83)(cid:70)(cid:248)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:84)(cid:74)(cid:91)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1) (cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:74)(cid:85)(cid:90)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:84)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:16)(cid:74)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90)(cid:16)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1) 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. (cid:53)(cid:73)(cid:70)(cid:1)(cid:66)(cid:72)(cid:72)(cid:83)(cid:70)(cid:72)(cid:66)(cid:85)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:81)(cid:66)(cid:90)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:38)(cid:37)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:42)(cid:37)(cid:84)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1) company performance, profits, return to investors, shareholder value creation and any other significant qualitative parameters as may be decided by the Board. (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:82)(cid:86)(cid:66)(cid:79)(cid:85)(cid:86)(cid:78)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:70)(cid:66)(cid:68)(cid:73)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:86)(cid:81)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:80)(cid:86)(cid:85)(cid:68)(cid:80)(cid:78)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) 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, (cid:66)(cid:84)(cid:1)(cid:78)(cid:66)(cid:90)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:67)(cid:70)(cid:70)(cid:79)(cid:1)(cid:74)(cid:79)(cid:68)(cid:86)(cid:83)(cid:83)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:88)(cid:73)(cid:74)(cid:77)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:74)(cid:79)(cid:72)(cid:1)(cid:73)(cid:74)(cid:84)(cid:16)(cid:73)(cid:70)(cid:83)(cid:1)(cid:83)(cid:80)(cid:77)(cid:70)(cid:1)(cid:66)(cid:84)(cid:1)(cid:66)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15)(cid:1)(cid:53)(cid:73)(cid:74)(cid:84)(cid:1)(cid:68)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:70)(cid:1) (cid:83)(cid:70)(cid:66)(cid:84)(cid:80)(cid:79)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:70)(cid:89)(cid:81)(cid:70)(cid:79)(cid:69)(cid:74)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:74)(cid:79)(cid:68)(cid:86)(cid:83)(cid:83)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:85)(cid:85)(cid:70)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:16)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:85)(cid:85)(cid:70)(cid:70)(cid:1)(cid:78)(cid:70)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:84)(cid:13)(cid:1)(cid:72)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:77)(cid:1)(cid:78)(cid:70)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:84)(cid:13)(cid:1)(cid:68)(cid:80)(cid:86)(cid:83)(cid:85)(cid:1) (cid:68)(cid:80)(cid:79)(cid:87)(cid:70)(cid:79)(cid:70)(cid:69)(cid:1)(cid:78)(cid:70)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:84)(cid:13)(cid:1)(cid:78)(cid:70)(cid:70)(cid:85)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:84)(cid:16)(cid:68)(cid:83)(cid:70)(cid:69)(cid:74)(cid:85)(cid:80)(cid:83)(cid:84)(cid:16)(cid:78)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:13)(cid:1)(cid:84)(cid:74)(cid:85)(cid:70)(cid:1)(cid:87)(cid:74)(cid:84)(cid:74)(cid:85)(cid:84)(cid:13)(cid:1)(cid:74)(cid:79)(cid:69)(cid:86)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:83)(cid:66)(cid:74)(cid:79)(cid:74)(cid:79)(cid:72)(cid:1)(cid:9)(cid:80)(cid:83)(cid:72)(cid:66)(cid:79)(cid:74)(cid:84)(cid:70)(cid:69)(cid:1) (cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:80)(cid:67)(cid:85)(cid:66)(cid:74)(cid:79)(cid:74)(cid:79)(cid:72)(cid:1)(cid:81)(cid:83)(cid:80)(cid:71)(cid:70)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:66)(cid:69)(cid:87)(cid:74)(cid:68)(cid:70)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:74)(cid:79)(cid:69)(cid:70)(cid:81)(cid:70)(cid:79)(cid:69)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:69)(cid:87)(cid:74)(cid:84)(cid:80)(cid:83)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:71)(cid:86)(cid:83)(cid:85)(cid:73)(cid:70)(cid:83)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:73)(cid:74)(cid:84)(cid:16) her duties as a director. 32 I Board’s Report 100th Annual Report 2018-19 (cid:122) 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: (cid:131) (cid:131) (cid:131)(cid:1) (cid:131) (cid:131) Market competitive (market for every role is defined as companies from which the company attracts talent or companies to which the company loses talent). Driven by the role played by the individual. (cid:51)(cid:70)(cid:248)(cid:70)(cid:68)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:84)(cid:74)(cid:91)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1) (cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:74)(cid:85)(cid:90)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:84)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:16)(cid:74)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90)(cid:16)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1) (cid:80)(cid:81)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1) capacity to pay. Consistent with recognized best practices. Aligned to any regulatory requirements. o In terms of remuneration mix or composition: (cid:131)(cid:1) (cid:131)(cid:1) (cid:131)(cid:1) (cid:131) (cid:131)(cid:1) (cid:131) (cid:53)(cid:73)(cid:70)(cid:1)(cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:78)(cid:74)(cid:89)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:46)(cid:37)(cid:16)(cid:38)(cid:37)(cid:84)(cid:1)(cid:74)(cid:84)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:66)(cid:68)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:73)(cid:80)(cid:77)(cid:69)(cid:70)(cid:83)(cid:84)(cid:15)(cid:1)(cid:42)(cid:79)(cid:1)(cid:68)(cid:66)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:66)(cid:79)(cid:90)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:13)(cid:1) the same would require the approval of the shareholders. (cid:35)(cid:66)(cid:84)(cid:74)(cid:68)(cid:16)(cid:246)(cid:89)(cid:70)(cid:69)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:90)(cid:1)(cid:74)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:70)(cid:79)(cid:84)(cid:86)(cid:83)(cid:70)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:1)(cid:74)(cid:84)(cid:1)(cid:66)(cid:1)(cid:84)(cid:85)(cid:70)(cid:66)(cid:69)(cid:90)(cid:1)(cid:74)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:74)(cid:83)(cid:1)(cid:84)(cid:76)(cid:74)(cid:77)(cid:77)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) experience. (cid:42)(cid:79)(cid:1)(cid:66)(cid:69)(cid:69)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:66)(cid:84)(cid:74)(cid:68)(cid:16)(cid:246)(cid:89)(cid:70)(cid:69)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:90)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:84)(cid:1)(cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:68)(cid:70)(cid:83)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1)(cid:81)(cid:70)(cid:83)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:13)(cid:1)(cid:66)(cid:77)(cid:77)(cid:80)(cid:88)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) (cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:85)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:70)(cid:79)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:66)(cid:1)(cid:68)(cid:70)(cid:83)(cid:85)(cid:66)(cid:74)(cid:79)(cid:1)(cid:77)(cid:70)(cid:87)(cid:70)(cid:77)(cid:1)(cid:80)(cid:71)(cid:1)(cid:77)(cid:74)(cid:71)(cid:70)(cid:84)(cid:85)(cid:90)(cid:77)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:80)(cid:242)(cid:70)(cid:83)(cid:1)(cid:84)(cid:68)(cid:80)(cid:81)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:84)(cid:66)(cid:87)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:66)(cid:89)(cid:1)(cid:80)(cid:81)(cid:85)(cid:74)(cid:78)(cid:74)(cid:91)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:13)(cid:1)(cid:88)(cid:73)(cid:70)(cid:83)(cid:70)(cid:1)(cid:81)(cid:80)(cid:84)(cid:84)(cid:74)(cid:67)(cid:77)(cid:70)(cid:15)(cid:1) 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. (cid:42)(cid:79)(cid:1)(cid:66)(cid:69)(cid:69)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:66)(cid:84)(cid:74)(cid:68)(cid:16)(cid:246)(cid:89)(cid:70)(cid:69)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:90)(cid:13)(cid:1)(cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:85)(cid:84)(cid:13)(cid:1)(cid:81)(cid:70)(cid:83)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:77)(cid:77)(cid:80)(cid:88)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:69)(cid:1)(cid:66)(cid:67)(cid:80)(cid:87)(cid:70)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:84)(cid:1) (cid:46)(cid:37)(cid:16)(cid:38)(cid:37)(cid:84)(cid:1)(cid:84)(cid:86)(cid:68)(cid:73)(cid:1)(cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:67)(cid:90)(cid:1)(cid:88)(cid:66)(cid:90)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:13)(cid:1)(cid:68)(cid:66)(cid:77)(cid:68)(cid:86)(cid:77)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:83)(cid:70)(cid:71)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:79)(cid:70)(cid:85)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:74)(cid:79)(cid:1) a particular financial year, as may be determined by the Board, subject to the overall ceilings stipulated in Section (cid:18)(cid:26)(cid:24)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:15)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:1)(cid:66)(cid:78)(cid:80)(cid:86)(cid:79)(cid:85)(cid:1)(cid:81)(cid:66)(cid:90)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:46)(cid:37)(cid:16)(cid:38)(cid:37)(cid:84)(cid:1)(cid:88)(cid:80)(cid:86)(cid:77)(cid:69)(cid:1)(cid:67)(cid:70)(cid:1)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)(cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:66)(cid:84)(cid:1)(cid:70)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) (cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:15)(cid:1) 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. (cid:122) 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) (cid:67)(cid:10)(cid:1) The services rendered are of a professional nature; and (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:74)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:80)(cid:81)(cid:74)(cid:79)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:81)(cid:80)(cid:84)(cid:84)(cid:70)(cid:84)(cid:84)(cid:70)(cid:84)(cid:1)(cid:83)(cid:70)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:70)(cid:1)(cid:82)(cid:86)(cid:66)(cid:77)(cid:74)(cid:246)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:66)(cid:68)(cid:85)(cid:74)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:71)(cid:70)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:15) Policy implementation (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:51)(cid:36)(cid:1)(cid:74)(cid:84)(cid:1)(cid:83)(cid:70)(cid:84)(cid:81)(cid:80)(cid:79)(cid:84)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:15)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:74)(cid:84)(cid:1)(cid:83)(cid:70)(cid:84)(cid:81)(cid:80)(cid:79)(cid:84)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) overseeing implementation of the remuneration policy. (cid:1) (cid:122) (cid:1) 1Excludes 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. I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Board’s Report I 33 The Tata Power Company Limited Annexure – V: Conservation of Energy and Technology Absorption (Ref.: Board’s Report, Section 17) A. Conservation of Energy (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) i. (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) The steps taken for impact on conservation of energy: (cid:58)(cid:80)(cid:86)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:74)(cid:69)(cid:70)(cid:83)(cid:84)(cid:1)(cid:74)(cid:85)(cid:1)(cid:74)(cid:78)(cid:81)(cid:80)(cid:83)(cid:85)(cid:66)(cid:79)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:78)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:74)(cid:79)(cid:86)(cid:80)(cid:86)(cid:84)(cid:77)(cid:90)(cid:1)(cid:83)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:69)(cid:70)(cid:78)(cid:66)(cid:79)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:68)(cid:83)(cid:70)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:79)(cid:1)(cid:70)(cid:79)(cid:87)(cid:74)(cid:83)(cid:80)(cid:79)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1)(cid:70)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1)(cid:86)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:80)(cid:88)(cid:70)(cid:83)(cid:15)(cid:1)(cid:48)(cid:79)(cid:70)(cid:1)(cid:80)(cid:71)(cid:835)(cid:85)(cid:73)(cid:70)(cid:1)(cid:76)(cid:70)(cid:90)(cid:1)(cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:83)(cid:80)(cid:77)(cid:77)(cid:70)(cid:69)(cid:1)(cid:80)(cid:86)(cid:85)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:105)(cid:44)(cid:79)(cid:80)(cid:88)(cid:1)(cid:58)(cid:80)(cid:86)(cid:83)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90)(cid:1)(cid:36)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:81)(cid:85)(cid:74)(cid:80)(cid:79)(cid:119)(cid:1) (cid:9)(cid:44)(cid:58)(cid:38)(cid:36)(cid:10)(cid:15)(cid:1) (cid:42)(cid:79)(cid:1) (cid:85)(cid:73)(cid:74)(cid:84)(cid:1) (cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1) (cid:34)(cid:86)(cid:85)(cid:80)(cid:78)(cid:66)(cid:85)(cid:74)(cid:68)(cid:1) (cid:46)(cid:70)(cid:85)(cid:70)(cid:83)(cid:1) (cid:51)(cid:70)(cid:66)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) (cid:70)(cid:79)(cid:66)(cid:67)(cid:77)(cid:70)(cid:69)(cid:1) (cid:36)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1) (cid:68)(cid:66)(cid:79)(cid:1) (cid:78)(cid:80)(cid:79)(cid:74)(cid:85)(cid:80)(cid:83)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:80)(cid:77)(cid:1) (cid:85)(cid:73)(cid:70)(cid:74)(cid:83)(cid:1) (cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1) consumption by looking at half-hourly energy consumption with comparative previous month pattern. This scheme also has a provision of budgeting energy consumption plan for the period including receiving alert in case of breaching the budgeted energy. For residential consumers, a provision has been incorporated for providing an alert on crossing of energy consumption beyond the slab. One of the unique features is alerts for energy consumption during periods of no occupancy. (cid:39)(cid:80)(cid:83)(cid:1) (cid:83)(cid:70)(cid:84)(cid:74)(cid:69)(cid:70)(cid:79)(cid:85)(cid:74)(cid:66)(cid:77)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1) (cid:74)(cid:79)(cid:1) (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:13)(cid:1) (cid:90)(cid:80)(cid:86)(cid:83)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1) (cid:77)(cid:66)(cid:86)(cid:79)(cid:68)(cid:73)(cid:70)(cid:69)(cid:1) (cid:66)(cid:1) (cid:86)(cid:79)(cid:74)(cid:82)(cid:86)(cid:70)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:1) (cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1) (cid:68)(cid:66)(cid:77)(cid:77)(cid:70)(cid:69)(cid:1)(cid:65)(cid:35)(cid:70)(cid:1) (cid:40)(cid:83)(cid:70)(cid:70)(cid:79)(cid:8)(cid:15)(cid:1) (cid:53)(cid:73)(cid:74)(cid:84)(cid:1) initiative gave an opportunity to the Company’s consumers to exchange their inefficient electrical appliances for 5-star (cid:83)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:70)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:84)(cid:86)(cid:68)(cid:73)(cid:1)(cid:66)(cid:84)(cid:1)(cid:74)(cid:79)(cid:87)(cid:70)(cid:83)(cid:85)(cid:80)(cid:83)(cid:84)(cid:13)(cid:1)(cid:66)(cid:74)(cid:83)(cid:1)(cid:68)(cid:80)(cid:79)(cid:69)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79)(cid:70)(cid:83)(cid:84)(cid:13)(cid:1)(cid:83)(cid:70)(cid:71)(cid:83)(cid:74)(cid:72)(cid:70)(cid:83)(cid:66)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:71)(cid:66)(cid:79)(cid:84)(cid:1)(cid:66)(cid:85)(cid:1)(cid:66)(cid:1)(cid:69)(cid:74)(cid:84)(cid:68)(cid:80)(cid:86)(cid:79)(cid:85)(cid:70)(cid:69)(cid:1)(cid:81)(cid:83)(cid:74)(cid:68)(cid:70)(cid:1)(cid:9)(cid:95)(cid:1)(cid:21)(cid:17)(cid:6)(cid:1) (cid:85)(cid:80)(cid:1)(cid:22)(cid:17)(cid:6)(cid:10)(cid:15)(cid:1)(cid:53)(cid:73)(cid:74)(cid:84)(cid:1)(cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:73)(cid:70)(cid:77)(cid:81)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:80)(cid:79)(cid:77)(cid:90)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:67)(cid:90)(cid:1)(cid:70)(cid:79)(cid:68)(cid:80)(cid:86)(cid:83)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:86)(cid:84)(cid:66)(cid:72)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:70)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:67)(cid:86)(cid:85)(cid:1)(cid:66)(cid:77)(cid:84)(cid:80)(cid:1) (cid:83)(cid:70)(cid:69)(cid:86)(cid:68)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:8)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:68)(cid:80)(cid:84)(cid:85)(cid:1)(cid:67)(cid:90)(cid:1)(cid:20)(cid:17)(cid:6)(cid:1)(cid:85)(cid:80)(cid:1)(cid:22)(cid:17)(cid:6)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:80)(cid:86)(cid:85)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:83)(cid:80)(cid:78)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:74)(cid:83)(cid:1)(cid:68)(cid:80)(cid:78)(cid:71)(cid:80)(cid:83)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:79)(cid:87)(cid:70)(cid:79)(cid:74)(cid:70)(cid:79)(cid:68)(cid:70)(cid:15)(cid:1)(cid:34)(cid:77)(cid:77)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:37)(cid:52)(cid:46)(cid:1) programs were launched after due and prior approval of the Maharashtra Electricity Regulatory Commission (MERC). (cid:37)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:39)(cid:58)(cid:18)(cid:26)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:77)(cid:66)(cid:86)(cid:79)(cid:68)(cid:73)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:41)(cid:70)(cid:66)(cid:85)(cid:1)(cid:49)(cid:86)(cid:78)(cid:81)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:41)(cid:70)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1)(cid:49)(cid:74)(cid:77)(cid:80)(cid:85)(cid:1)(cid:81)(cid:83)(cid:80)(cid:72)(cid:83)(cid:66)(cid:78)(cid:15)(cid:1)(cid:41)(cid:70)(cid:66)(cid:85)(cid:1)(cid:81)(cid:86)(cid:78)(cid:81)(cid:1)(cid:88)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:73)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:84)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1) highly energy efficient as most of the energy required for water heating comes from the external environment and only a fraction comes from electricity. This pilot program incentivized the consumers to use the energy efficient Heat Pump Technology for water heating. About 4,000 energy efficient appliances (ceiling fan, AC, refrigerator) were provided to (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:39)(cid:58)(cid:18)(cid:26)(cid:15)(cid:1)(cid:34)(cid:77)(cid:84)(cid:80)(cid:13)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:14)(cid:37)(cid:37)(cid:45)(cid:1)(cid:66)(cid:68)(cid:73)(cid:74)(cid:70)(cid:87)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:78)(cid:74)(cid:77)(cid:70)(cid:84)(cid:85)(cid:80)(cid:79)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:18)(cid:1)(cid:78)(cid:74)(cid:77)(cid:77)(cid:74)(cid:80)(cid:79)(cid:1)(cid:45)(cid:38)(cid:37)(cid:1)(cid:77)(cid:74)(cid:72)(cid:73)(cid:85)(cid:84)(cid:15) (cid:58)(cid:80)(cid:86)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:68)(cid:80)(cid:79)(cid:69)(cid:86)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:88)(cid:66)(cid:77)(cid:76)(cid:1)(cid:69)(cid:80)(cid:88)(cid:79)(cid:1)(cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:84)(cid:86)(cid:83)(cid:87)(cid:70)(cid:90)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:74)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:83)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) (cid:88)(cid:70)(cid:83)(cid:70)(cid:1)(cid:80)(cid:242)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:69)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:74)(cid:78)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:68)(cid:70)(cid:84)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:70)(cid:82)(cid:86)(cid:74)(cid:81)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:70)(cid:243)(cid:68)(cid:74)(cid:70)(cid:79)(cid:68)(cid:90)(cid:15) (cid:58)(cid:80)(cid:86)(cid:83)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:84)(cid:1)(cid:66)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:24)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:66)(cid:1)(cid:78)(cid:80)(cid:79)(cid:85)(cid:73)(cid:77)(cid:90)(cid:1)(cid:67)(cid:66)(cid:84)(cid:74)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:15)(cid:1)(cid:53)(cid:73)(cid:70)(cid:84)(cid:70)(cid:1)(cid:67)(cid:74)(cid:77)(cid:77)(cid:84)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:81)(cid:83)(cid:74)(cid:79)(cid:85)(cid:70)(cid:69)(cid:1)(cid:86)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:83)(cid:70)(cid:68)(cid:90)(cid:68)(cid:77)(cid:70)(cid:69)(cid:1) paper without harming the environment, which is equivalent to saving 2,800 trees annually. In addition, your Company (cid:73)(cid:66)(cid:84)(cid:1) (cid:70)(cid:79)(cid:68)(cid:80)(cid:86)(cid:83)(cid:66)(cid:72)(cid:70)(cid:69)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1) (cid:85)(cid:80)(cid:1) (cid:80)(cid:81)(cid:85)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:81)(cid:66)(cid:81)(cid:70)(cid:83)(cid:77)(cid:70)(cid:84)(cid:84)(cid:1) (cid:70)(cid:14)(cid:67)(cid:74)(cid:77)(cid:77)(cid:74)(cid:79)(cid:72)(cid:15)(cid:1) (cid:37)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1) (cid:39)(cid:58)(cid:18)(cid:26)(cid:13)(cid:1) (cid:80)(cid:87)(cid:70)(cid:83)(cid:1) (cid:19)(cid:26)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1) (cid:80)(cid:81)(cid:85)(cid:70)(cid:69)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:70)(cid:14)(cid:67)(cid:74)(cid:77)(cid:77)(cid:74)(cid:79)(cid:72)(cid:1) (cid:74)(cid:79)(cid:1) (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:15)(cid:1)(cid:58)(cid:80)(cid:86)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:85)(cid:66)(cid:76)(cid:70)(cid:79)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:1)(cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:79)(cid:70)(cid:89)(cid:85)(cid:1)(cid:77)(cid:70)(cid:87)(cid:70)(cid:77)(cid:1)(cid:67)(cid:90)(cid:1)(cid:74)(cid:79)(cid:85)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:105)(cid:49)(cid:66)(cid:83)(cid:90)(cid:66)(cid:87)(cid:66)(cid:83)(cid:66)(cid:79)(cid:1)(cid:46)(cid:74)(cid:85)(cid:83)(cid:66)(cid:119)(cid:1)(cid:81)(cid:83)(cid:80)(cid:72)(cid:83)(cid:66)(cid:78)(cid:1)(cid:88)(cid:73)(cid:70)(cid:83)(cid:70)(cid:74)(cid:79)(cid:1) (cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1)(cid:81)(cid:77)(cid:70)(cid:69)(cid:72)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:70)(cid:83)(cid:87)(cid:70)(cid:1)(cid:83)(cid:70)(cid:84)(cid:80)(cid:86)(cid:83)(cid:68)(cid:70)(cid:84)(cid:1)(cid:9)(cid:39)(cid:86)(cid:70)(cid:77)(cid:13)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:13)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90)(cid:13)(cid:1)(cid:70)(cid:85)(cid:68)(cid:15)(cid:10)(cid:15)(cid:1)(cid:42)(cid:79)(cid:1)(cid:77)(cid:74)(cid:70)(cid:86)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:74)(cid:84)(cid:13)(cid:1)(cid:90)(cid:80)(cid:86)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:81)(cid:77)(cid:66)(cid:79)(cid:85)(cid:84)(cid:1)(cid:84)(cid:66)(cid:81)(cid:77)(cid:74)(cid:79)(cid:72)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) catchment area around the Company’s hydro power stations. 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Additionally, robotic cleaning of AC duct resulted in (cid:70)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:84)(cid:66)(cid:87)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:26)(cid:22)(cid:23)(cid:1)(cid:76)(cid:56)(cid:73)(cid:16)(cid:69)(cid:66)(cid:90)(cid:15)(cid:1)(cid:34)(cid:85)(cid:1)(cid:84)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:13)(cid:1)(cid:84)(cid:70)(cid:66)(cid:84)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:85)(cid:74)(cid:77)(cid:85)(cid:84)(cid:1)(cid:88)(cid:70)(cid:83)(cid:70)(cid:1)(cid:74)(cid:78)(cid:81)(cid:77)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:83)(cid:70)(cid:69)(cid:86)(cid:68)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:80)(cid:74)(cid:79)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:70)(cid:83)(cid:83)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:84)(cid:86)(cid:79)(cid:1)(cid:83)(cid:66)(cid:90)(cid:84)(cid:1) (cid:81)(cid:70)(cid:83)(cid:81)(cid:70)(cid:79)(cid:69)(cid:74)(cid:68)(cid:86)(cid:77)(cid:66)(cid:83)(cid:1)(cid:85)(cid:80)(cid:1)(cid:49)(cid:55)(cid:1)(cid:66)(cid:83)(cid:83)(cid:66)(cid:90)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:73)(cid:70)(cid:77)(cid:81)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:74)(cid:78)(cid:81)(cid:83)(cid:80)(cid:87)(cid:70)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:1)(cid:90)(cid:74)(cid:70)(cid:77)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:84)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:49)(cid:55)(cid:1)(cid:81)(cid:77)(cid:66)(cid:79)(cid:85)(cid:84)(cid:15) 34 I Board’s Report 100th Annual Report 2018-19 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 3 Future Plan of Action C. TECHNOLOGY ABSORPTION (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) (cid:120) (cid:120)(cid:1) (cid:120)(cid:1) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) (cid:120) (cid:54)(cid:77)(cid:85)(cid:83)(cid:66)(cid:1) (cid:45)(cid:80)(cid:79)(cid:72)(cid:1) (cid:51)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1) (cid:48)(cid:67)(cid:84)(cid:70)(cid:83)(cid:87)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1) (cid:51)(cid:34)(cid:43)(cid:34)(cid:44)(cid:1) (cid:54)(cid:45)(cid:51)(cid:14)(cid:18)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:77)(cid:80)(cid:79)(cid:72)(cid:14)(cid:83)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1) (cid:84)(cid:70)(cid:79)(cid:84)(cid:80)(cid:83)(cid:84)(cid:1) and indigenous thermal Engine and rugged console Multispectral imaging system with integrated radar for navigation in adverse weather (cid:54)(cid:81)(cid:72)(cid:83)(cid:66)(cid:69)(cid:70)(cid:1) (cid:85)(cid:80)(cid:1) (cid:78)(cid:86)(cid:77)(cid:85)(cid:74)(cid:14)(cid:84)(cid:70)(cid:79)(cid:84)(cid:80)(cid:83)(cid:1) (cid:69)(cid:66)(cid:85)(cid:66)(cid:1) (cid:71)(cid:86)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1) (cid:70)(cid:79)(cid:72)(cid:74)(cid:79)(cid:70)(cid:1) (cid:85)(cid:80)(cid:1) (cid:84)(cid:86)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1) (cid:20)(cid:22)(cid:17)(cid:17)(cid:1) (cid:85)(cid:66)(cid:83)(cid:72)(cid:70)(cid:85)(cid:84)(cid:1) (cid:71)(cid:83)(cid:80)(cid:78)(cid:1) (cid:19)(cid:17)(cid:1) heterogeneous sensors with refresh rate of 0.5 secs Enhancement of the spider framework to support newer generation of sensors Development of Direct Line Light with high shock substance for usage in high calibre artillery guns 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(cid:70)(cid:77)(cid:70)(cid:87)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:81)(cid:66)(cid:90)(cid:77)(cid:80)(cid:66)(cid:69)(cid:84)(cid:1) (cid:80)(cid:71)(cid:1) (cid:86)(cid:81)(cid:85)(cid:80)(cid:1) (cid:22)(cid:17)(cid:17)(cid:1) (cid:76)(cid:47)(cid:1) dynamic load (cid:54)(cid:81)(cid:72)(cid:83)(cid:66)(cid:69)(cid:70)(cid:69)(cid:1)(cid:71)(cid:86)(cid:70)(cid:77)(cid:1)(cid:68)(cid:70)(cid:77)(cid:77)(cid:1)(cid:111)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:68)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:86)(cid:72)(cid:72)(cid:70)(cid:69)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:78)(cid:74)(cid:77)(cid:74)(cid:85)(cid:66)(cid:83)(cid:90)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84) Long Range Observation System supplied to MHA for deployment in high attitude, harsh weather environment (cid:37)(cid:70)(cid:77)(cid:74)(cid:87)(cid:70)(cid:83)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:70)(cid:89)(cid:85)(cid:70)(cid:79)(cid:84)(cid:74)(cid:87)(cid:70)(cid:1)(cid:85)(cid:83)(cid:74)(cid:66)(cid:77)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:39)(cid:80)(cid:72)(cid:1)(cid:55)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1)(cid:9)(cid:39)(cid:55)(cid:52)(cid:10)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:79)(cid:1)(cid:51)(cid:66)(cid:74)(cid:77)(cid:88)(cid:66)(cid:90)(cid:84) Deployment of Border Management capability with SPIDER framework as part of CIBMS program of MHA and in IPSS trials of Indian Air Force (cid:42)(cid:79)(cid:85)(cid:70)(cid:72)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:1)(cid:246)(cid:83)(cid:70)(cid:1)(cid:83)(cid:74)(cid:72)(cid:73)(cid:85)(cid:1)(cid:9)(cid:48)(cid:38)(cid:52)(cid:49)(cid:10)(cid:1)(cid:80)(cid:79)(cid:1)(cid:34)(cid:53)(cid:34)(cid:40)(cid:52)(cid:1)(cid:72)(cid:86)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:74)(cid:72)(cid:80)(cid:83)(cid:80)(cid:86)(cid:84)(cid:1)(cid:246)(cid:70)(cid:77)(cid:69)(cid:1)(cid:85)(cid:70)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1) the same Deployment of analytics & SPIDER framework in the cloud for customers & partners Identify gaps in technology and subsystems and initiate development projects 1 2 3 4 (cid:38)(cid:242)(cid:80)(cid:83)(cid:85)(cid:84)(cid:13)(cid:1)(cid:74)(cid:79)(cid:1)(cid:67)(cid:83)(cid:74)(cid:70)(cid:71)(cid:13)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:80)(cid:88)(cid:66)(cid:83)(cid:69)(cid:84)(cid:1) Technology Absorption, adaptation and innovation Benefits derived as a result of the (cid:66)(cid:67)(cid:80)(cid:87)(cid:70)(cid:1)(cid:70)(cid:242)(cid:80)(cid:83)(cid:85)(cid:84) 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) (cid:67)(cid:10)(cid:1) c) Technology Imported (cid:58)(cid:70)(cid:66)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:78)(cid:81)(cid:80)(cid:83)(cid:85) Has technology been fully absorbed? If not fully absorbed, areas where this has not taken place, reasons thereof and future plans of action d) (cid:38)(cid:89)(cid:81)(cid:70)(cid:79)(cid:69)(cid:74)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:80)(cid:79)(cid:1)(cid:51)(cid:1)(cid:7)(cid:1)(cid:37)(cid:1)(cid:9)(cid:74)(cid:79)(cid:1)(cid:846)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70)(cid:10) a) b) Capital Recurring (cid:120) (cid:120)(cid:1) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) (cid:120)(cid:1) (cid:120) (cid:66)(cid:10)(cid:1) (cid:67)(cid:10)(cid:1) (cid:68)(cid:10)(cid:1) d) (cid:66)(cid:10)(cid:1) (cid:1) (cid:67)(cid:10)(cid:1) (cid:1) (cid:1) Bottom Ash and waste plastic-based bricks for heavy load applications (cid:39)(cid:66)(cid:67)(cid:83)(cid:74)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:83)(cid:70)(cid:70)(cid:1)(cid:34)(cid:77)(cid:71)(cid:66)(cid:1)(cid:54)(cid:79)(cid:74)(cid:85)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:54)(cid:79)(cid:74)(cid:248)(cid:80)(cid:88)(cid:1)(cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:246)(cid:70)(cid:77)(cid:69)(cid:1)(cid:69)(cid:70)(cid:81)(cid:77)(cid:80)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85) (cid:54)(cid:85)(cid:74)(cid:77)(cid:74)(cid:84)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:69)(cid:83)(cid:80)(cid:79)(cid:70)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:78)(cid:66)(cid:74)(cid:79)(cid:85)(cid:70)(cid:79)(cid:66)(cid:79)(cid:68)(cid:70)(cid:13)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:78)(cid:66)(cid:77)(cid:1)(cid:74)(cid:78)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:66)(cid:84)(cid:84)(cid:70)(cid:85)(cid:84) Drone-based image analytics for solar and wind assets (cid:39)(cid:86)(cid:79)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:84)(cid:81)(cid:70)(cid:68)(cid:74)(cid:246)(cid:68)(cid:1)(cid:83)(cid:80)(cid:67)(cid:80)(cid:85)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:74)(cid:79)(cid:1)(cid:73)(cid:90)(cid:69)(cid:83)(cid:80)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:56)(cid:1)(cid:81)(cid:74)(cid:81)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84) Devising methods for ash utilisation (cid:48)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:86)(cid:79)(cid:74)(cid:85)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:71)(cid:86)(cid:83)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:84)(cid:66)(cid:87)(cid:74)(cid:79)(cid:72)(cid:84)(cid:1)(cid:66)(cid:85)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:84)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:49)(cid:55)(cid:1)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:1)(cid:67)(cid:90)(cid:1)(cid:86)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:69)(cid:83)(cid:80)(cid:79)(cid:70)(cid:14)(cid:67)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1) technology insights Safe operations and maintenance in open switch yards (cid:42)(cid:79)(cid:70)(cid:83)(cid:85)(cid:74)(cid:66)(cid:77)(cid:1)(cid:47)(cid:66)(cid:87)(cid:74)(cid:72)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1)(cid:9)(cid:42)(cid:47)(cid:52)(cid:10)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:41)(cid:80)(cid:79)(cid:70)(cid:90)(cid:88)(cid:70)(cid:77)(cid:77)(cid:13)(cid:1)(cid:54)(cid:52)(cid:34) (cid:39)(cid:58)(cid:18)(cid:22) (cid:53)(cid:70)(cid:68)(cid:73)(cid:79)(cid:80)(cid:77)(cid:80)(cid:72)(cid:90)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:87)(cid:66)(cid:77)(cid:74)(cid:69)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:81)(cid:74)(cid:77)(cid:80)(cid:85)(cid:1)(cid:81)(cid:83)(cid:80)(cid:75)(cid:70)(cid:68)(cid:85)(cid:84)(cid:1)(cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:39)(cid:58)(cid:18)(cid:23)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:39)(cid:58)(cid:18)(cid:24) Technology to go for manufacturing 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(cid:120)(cid:1) (cid:120)(cid:1) Installation of Energy Management System through PI system at Maithon RFID-based masking system for coal sampling and analysis at Maithon 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(cid:53)(cid:80)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:1)(cid:83)(cid:70)(cid:77)(cid:74)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:41)(cid:53)(cid:1)(cid:84)(cid:86)(cid:81)(cid:81)(cid:77)(cid:90)(cid:1)(cid:85)(cid:80)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:86)(cid:78)(cid:70)(cid:83)(cid:84)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:78)(cid:74)(cid:79)(cid:74)(cid:78)(cid:86)(cid:78)(cid:1)(cid:84)(cid:81)(cid:66)(cid:68)(cid:70)(cid:1)(cid:83)(cid:70)(cid:82)(cid:86)(cid:74)(cid:83)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:13)(cid:1)(cid:66)(cid:1)(cid:68)(cid:80)(cid:78)(cid:67)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:84)(cid:80)(cid:77)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:86)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:51)(cid:46)(cid:54)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:53)(cid:49)(cid:53)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1) developed. Introduced Smart Meter Reading & Bill Distribution (SMRD) for improving process efficiency in meter reading and bill dispatch activities. (cid:54)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:78)(cid:80)(cid:79)(cid:80)(cid:81)(cid:80)(cid:77)(cid:70)(cid:1)(cid:74)(cid:79)(cid:14)(cid:81)(cid:77)(cid:66)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:79)(cid:87)(cid:70)(cid:79)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:85)(cid:80)(cid:88)(cid:70)(cid:83)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:83)(cid:66)(cid:74)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:73)(cid:70)(cid:74)(cid:72)(cid:73)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:80)(cid:87)(cid:70)(cid:83)(cid:73)(cid:70)(cid:66)(cid:69)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:46)(cid:70)(cid:85)(cid:83)(cid:80)(cid:1)(cid:51)(cid:66)(cid:74)(cid:77)(cid:1) Corporation (MMRC)’s Metro 7 project within available space. (cid:54)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:36)(cid:83)(cid:90)(cid:84)(cid:85)(cid:66)(cid:77)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:81)(cid:83)(cid:80)(cid:80)(cid:246)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:9)(cid:42)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:46)(cid:70)(cid:78)(cid:67)(cid:83)(cid:66)(cid:79)(cid:70)(cid:10)(cid:1)(cid:74)(cid:79)(cid:1)(cid:81)(cid:77)(cid:66)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:52)(cid:86)(cid:83)(cid:71)(cid:66)(cid:68)(cid:70)(cid:1)(cid:34)(cid:81)(cid:81)(cid:77)(cid:74)(cid:70)(cid:69)(cid:1)(cid:46)(cid:70)(cid:78)(cid:67)(cid:83)(cid:66)(cid:79)(cid:70)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:67)(cid:90)(cid:1)(cid:83)(cid:70)(cid:69)(cid:86)(cid:68)(cid:74)(cid:79)(cid:72)(cid:1) building construction time and hence cost for receiving stations. Partial Discharge (PD) measurement for indoor switchgears which helps in early detection of equipment condition to avert failures by taking preventive action. (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:13)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:1) On behalf of the Board of Directors, N. Chandrasekaran Chairman (cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:17)(cid:18)(cid:19)(cid:18)(cid:25)(cid:23)(cid:20)(cid:10) 36 I Board’s Report 100th Annual Report 2018-19 Annexure – VI : DISCLOSURE OF MANAGERIAL REMUNERATION (Ref.: Board’s Report, Section 18) 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 (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:1)$ (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:66)(cid:88)(cid:84)(cid:73)(cid:74)(cid:83)(cid:1)(cid:41)(cid:15)(cid:1)(cid:46)(cid:74)(cid:83)(cid:91)(cid:66) Mr. Deepak M. Satwalekar Ms. Anjali Bansal (cid:46)(cid:84)(cid:15)(cid:1)(cid:55)(cid:74)(cid:67)(cid:73)(cid:66)(cid:1)(cid:49)(cid:66)(cid:69)(cid:66)(cid:77)(cid:76)(cid:66)(cid:83) (cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:79)(cid:75)(cid:66)(cid:90)(cid:1)(cid:55)(cid:15)(cid:1)(cid:35)(cid:73)(cid:66)(cid:79)(cid:69)(cid:66)(cid:83)(cid:76)(cid:66)(cid:83)(cid:1) Mr. K. M. Chandrasekhar Mr. Hemant Bhargava Mr. Saurabh Agrawal # Mr. Banmali Agrawala # Mr. Praveer Sinha, CEO and Managing Director (w.e.f 01.05.2018) - 6.88 6.47 (cid:21)(cid:15)(cid:26)(cid:25) 5.01 5.55 4.01 (cid:18)(cid:15)(cid:26)(cid:19) - - 40.86 (cid:1) b) Mr. Ashok S. Sethi, COO and Executive Director* Mr. Anil Sardana, CEO and Managing Director@ $ (cid:34)(cid:84)(cid:1)(cid:66)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:13)(cid:1)(cid:36)(cid:73)(cid:66)(cid:74)(cid:83)(cid:78)(cid:66)(cid:79)(cid:13)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:66)(cid:67)(cid:84)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:83)(cid:70)(cid:68)(cid:70)(cid:74)(cid:87)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:73)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:69)(cid:15)(cid:1) # (cid:42)(cid:79)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:79)(cid:80)(cid:1)(cid:81)(cid:66)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:74)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:80)(cid:88)(cid:66)(cid:83)(cid:69)(cid:84)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:9)(cid:47)(cid:38)(cid:37)(cid:84)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) Company, who are in full time employment with another Tata company and hence not stated. (cid:11)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:70)(cid:85)(cid:73)(cid:74)(cid:1)(cid:84)(cid:86)(cid:81)(cid:70)(cid:83)(cid:66)(cid:79)(cid:79)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:48)(cid:48)(cid:1)(cid:7)(cid:1)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:15) @(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:83)(cid:69)(cid:66)(cid:79)(cid:66)(cid:1)(cid:83)(cid:70)(cid:84)(cid:74)(cid:72)(cid:79)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:38)(cid:48)(cid:1)(cid:7)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:15) 18.54 38.68 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 (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:1)$ (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:66)(cid:88)(cid:84)(cid:73)(cid:74)(cid:83)(cid:1)(cid:41)(cid:15)(cid:1)(cid:46)(cid:74)(cid:83)(cid:91)(cid:66) Mr. Deepak M. Satwalekar Ms. Anjali Bansal (cid:46)(cid:84)(cid:15)(cid:1)(cid:55)(cid:74)(cid:67)(cid:73)(cid:66)(cid:1)(cid:49)(cid:66)(cid:69)(cid:66)(cid:77)(cid:76)(cid:66)(cid:83) (cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:79)(cid:75)(cid:66)(cid:90)(cid:1)(cid:55)(cid:15)(cid:1)(cid:35)(cid:73)(cid:66)(cid:79)(cid:69)(cid:66)(cid:83)(cid:76)(cid:66)(cid:83)(cid:1) Mr. K. M. Chandrasekhar Mr. Hemant Bhargava Mr. Saurabh Agrawal # Mr. Banmali Agrawala # Mr. Praveer Sinha, CEO and Managing Director (KMP) (w.e.f 01.05.2018) Mr. Ashok S. Sethi, COO and Executive Director (KMP) * Mr. Anil Sardana, CEO and Managing Director (KMP) @ (cid:46)(cid:83)(cid:15)(cid:1)(cid:51)(cid:66)(cid:78)(cid:70)(cid:84)(cid:73)(cid:1)(cid:47)(cid:15)(cid:1)(cid:52)(cid:86)(cid:67)(cid:83)(cid:66)(cid:78)(cid:66)(cid:79)(cid:90)(cid:66)(cid:78)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:70)(cid:71)(cid:1)(cid:39)(cid:74)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:48)(cid:243)(cid:68)(cid:70)(cid:83)(cid:1)(cid:9)(cid:44)(cid:46)(cid:49)(cid:10) Mr. Hanoz M. Mistry, Company Secretary (KMP) - -27.17 (cid:14)(cid:18)(cid:26)(cid:15)(cid:26)(cid:18) 18.60 15.47 20.32 110.63 67.20 - - (cid:47)(cid:15)(cid:34)(cid:15) 14.41 -78.86 11.00 13.21 $ (cid:34)(cid:84)(cid:1)(cid:66)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:13)(cid:1)(cid:36)(cid:73)(cid:66)(cid:74)(cid:83)(cid:78)(cid:66)(cid:79)(cid:13)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:66)(cid:67)(cid:84)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:83)(cid:70)(cid:68)(cid:70)(cid:74)(cid:87)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:73)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:69)(cid:15)(cid:1) # (cid:42)(cid:79)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:79)(cid:80)(cid:1)(cid:81)(cid:66)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:74)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:80)(cid:88)(cid:66)(cid:83)(cid:69)(cid:84)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:38)(cid:37)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:88)(cid:73)(cid:80)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:71)(cid:86)(cid:77)(cid:77)(cid:1)(cid:85)(cid:74)(cid:78)(cid:70)(cid:1) employment with another Tata company and hence not stated. (cid:11)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:70)(cid:85)(cid:73)(cid:74)(cid:1)(cid:84)(cid:86)(cid:81)(cid:70)(cid:83)(cid:66)(cid:79)(cid:79)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:48)(cid:48)(cid:1)(cid:7)(cid:1)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:15) @(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:83)(cid:69)(cid:66)(cid:79)(cid:66)(cid:1)(cid:83)(cid:70)(cid:84)(cid:74)(cid:72)(cid:79)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:38)(cid:48)(cid:1)(cid:7)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:15) (cid:1) Board’s Report I 37 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited (cid:68)(cid:10)(cid:1) d) e) (cid:1) (cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:68)(cid:70)(cid:79)(cid:85)(cid:66)(cid:72)(cid:70)(cid:1)(cid:74)(cid:79)(cid:68)(cid:83)(cid:70)(cid:66)(cid:84)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:78)(cid:70)(cid:69)(cid:74)(cid:66)(cid:79)(cid:1)(cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:27)(cid:1)(cid:14)(cid:18)(cid:15)(cid:17)(cid:24)(cid:6)(cid:15) The number of permanent employees on the rolls of the company: 3,248. 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: (cid:14)(cid:1) (cid:14)(cid:1) (cid:34)(cid:87)(cid:70)(cid:83)(cid:66)(cid:72)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:68)(cid:70)(cid:79)(cid:85)(cid:74)(cid:77)(cid:70)(cid:1)(cid:74)(cid:79)(cid:68)(cid:83)(cid:70)(cid:66)(cid:84)(cid:70)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:66)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:78)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:81)(cid:70)(cid:83)(cid:84)(cid:80)(cid:79)(cid:79)(cid:70)(cid:77)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:24)(cid:6)(cid:15) (cid:34)(cid:87)(cid:70)(cid:83)(cid:66)(cid:72)(cid:70)(cid:1) (cid:74)(cid:79)(cid:68)(cid:83)(cid:70)(cid:66)(cid:84)(cid:70)(cid:1) (cid:74)(cid:79)(cid:1) (cid:83)(cid:70)(cid:78)(cid:86)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:80)(cid:71)(cid:1) (cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:83)(cid:84)(cid:1) (cid:9)(cid:69)(cid:70)(cid:246)(cid:79)(cid:70)(cid:69)(cid:1) (cid:66)(cid:84)(cid:1) (cid:46)(cid:37)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:38)(cid:37)(cid:1) (cid:80)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1) (cid:80)(cid:71)(cid:1) (cid:90)(cid:80)(cid:86)(cid:83)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:10)(cid:1) (cid:88)(cid:66)(cid:84)(cid:1) (cid:18)(cid:21)(cid:15)(cid:21)(cid:18)(cid:6)(cid:15)(cid:1) As Mr. Praveer Sinha was appointed as CEO and Managing Director of the Company effective 1st May 2018, his remuneration is not comparable for the purpose of calculating aforesaid average increase in remuneration. 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, approved by the Board. On behalf of the Board of Directors, N. Chandrasekaran Chairman (cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:17)(cid:18)(cid:19)(cid:18)(cid:25)(cid:23)(cid:20)(cid:10) (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:13)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) 38 I Board’s Report 100th Annual Report 2018-19 Annexure – VII : RELATED PARTY TRANSACTIONS (cid:9)(cid:51)(cid:70)(cid:71)(cid:15)(cid:27)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:8)(cid:84)(cid:1)(cid:51)(cid:70)(cid:81)(cid:80)(cid:83)(cid:85)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:18)(cid:26)(cid:10) FORM No. AOC-2 (cid:39)(cid:80)(cid:83)(cid:78)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:69)(cid:74)(cid:84)(cid:68)(cid:77)(cid:80)(cid:84)(cid:86)(cid:83)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:66)(cid:83)(cid:85)(cid:74)(cid:68)(cid:86)(cid:77)(cid:66)(cid:83)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:66)(cid:68)(cid:85)(cid:84)(cid:16)(cid:66)(cid:83)(cid:83)(cid:66)(cid:79)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:70)(cid:79)(cid:85)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:85)(cid:80)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:81)(cid:66)(cid:83)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:83)(cid:70)(cid:71)(cid:70)(cid:83)(cid:83)(cid:70)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:74)(cid:79)(cid:1)(cid:84)(cid:86)(cid:67)(cid:14) 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 section 134 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 Tata Sons Private Limited (Investee Company)* Panatone Finvest Limited (Associate Company)* 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 Share Purchase Agreement (cid:47)(cid:15)(cid:34)(cid:15) Share Purchase Agreement (cid:47)(cid:15)(cid:34)(cid:15) (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) (cid:47)(cid:74)(cid:77) (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) (cid:47)(cid:74)(cid:77) Share Purchase Agreement for sale of (cid:22)(cid:26)(cid:13)(cid:17)(cid:25)(cid:13)(cid:25)(cid:19)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1)(cid:38)(cid:82)(cid:86)(cid:74)(cid:85)(cid:90)(cid:1) Shares held in Panatone Finvest Limited to Tata Sons Private Limited. Consideration value (cid:846)(cid:1)(cid:18)(cid:13)(cid:22)(cid:21)(cid:19)(cid:15)(cid:23)(cid:18)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70)(cid:15) Share Purchase Agreement for sale (cid:80)(cid:71)(cid:1)(cid:18)(cid:13)(cid:20)(cid:20)(cid:13)(cid:26)(cid:23)(cid:13)(cid:19)(cid:17)(cid:17)(cid:1)(cid:38)(cid:82)(cid:86)(cid:74)(cid:85)(cid:90)(cid:1) Shares held in Tata Communications Limited to Panatone Finvest Limited. Consideration value (cid:846)(cid:1)(cid:23)(cid:18)(cid:20)(cid:15)(cid:21)(cid:26)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70)(cid:15) Share Purchase Agreement for sale of (cid:22)(cid:26)(cid:13)(cid:17)(cid:25)(cid:13)(cid:25)(cid:19)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) Equity Shares held in Panatone Finvest Limited to Tata Sons Private Limited. Share Purchase Agreement for sale of (cid:18)(cid:13)(cid:20)(cid:20)(cid:13)(cid:26)(cid:23)(cid:13)(cid:19)(cid:17)(cid:17)(cid:1) Equity Shares held in Tata Communications Limited to Panatone Finvest Limited. Date on which the special resolution was passed in general meeting as required under first proviso to Section 188 Shareholders approval obtained by Postal Ballot on 18.05.2018 Shareholders approval obtained by Postal Ballot on 18.05.2018 * Details of above trasactions were disclosed in the previous year also. 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 Date(s) of approval by the Board, if any Amount paid as advances, if any Salient terms of the contracts or arrangements or transactions including the value, if any (cid:47)(cid:74)(cid:77) (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:13)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:1) On behalf of the Board of Directors, N. Chandrasekaran Chairman (cid:1)(cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:17)(cid:18)(cid:19)(cid:18)(cid:25)(cid:23)(cid:20)(cid:10) Board’s Report I (cid:20)(cid:26) I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Annexure – VIII : EXTRACT OF ANNUAL RETURN (Ref.: Board’s Report, Section 22) FORM No. MGT-9 (cid:38)(cid:57)(cid:53)(cid:51)(cid:34)(cid:36)(cid:53)(cid:1)(cid:48)(cid:39)(cid:1)(cid:34)(cid:47)(cid:47)(cid:54)(cid:34)(cid:45)(cid:1)(cid:51)(cid:38)(cid:53)(cid:54)(cid:51)(cid:47) (cid:66)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:18)(cid:84)(cid:85)(cid:1)(cid:46)(cid:66)(cid:83)(cid:68)(cid:73)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) (cid:60)(cid:49)(cid:86)(cid:83)(cid:84)(cid:86)(cid:66)(cid:79)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:84)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:26)(cid:19)(cid:9)(cid:20)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:20)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:86)(cid:77)(cid:70)(cid:1)(cid:18)(cid:19)(cid:9)(cid:18)(cid:10)(cid:1) of the Companies (Management and Administration) Rules, 2014] I. REGISTRATION AND OTHER DETAILS: (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) II. (cid:1) (cid:74)(cid:10)(cid:1) (cid:74)(cid:74)(cid:10)(cid:1) (cid:74)(cid:74)(cid:74)(cid:10)(cid:1) (cid:74)(cid:87)(cid:10)(cid:1) v) (cid:36)(cid:42)(cid:47)(cid:27)(cid:1)(cid:45)(cid:19)(cid:25)(cid:26)(cid:19)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:18)(cid:26)(cid:49)(cid:45)(cid:36)(cid:17)(cid:17)(cid:17)(cid:22)(cid:23)(cid:24) (cid:51)(cid:70)(cid:72)(cid:74)(cid:84)(cid:85)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:37)(cid:66)(cid:85)(cid:70)(cid:27)(cid:1)(cid:18)(cid:25)(cid:85)(cid:73)(cid:1)(cid:52)(cid:70)(cid:81)(cid:85)(cid:70)(cid:78)(cid:67)(cid:70)(cid:83)(cid:1)(cid:18)(cid:26)(cid:18)(cid:26) (cid:47)(cid:66)(cid:78)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:27)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:45)(cid:74)(cid:78)(cid:74)(cid:85)(cid:70)(cid:69) (cid:36)(cid:66)(cid:85)(cid:70)(cid:72)(cid:80)(cid:83)(cid:90)(cid:16)(cid:52)(cid:86)(cid:67)(cid:14)(cid:36)(cid:66)(cid:85)(cid:70)(cid:72)(cid:80)(cid:83)(cid:90)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:27)(cid:1)(cid:49)(cid:86)(cid:67)(cid:77)(cid:74)(cid:68)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:77)(cid:74)(cid:78)(cid:74)(cid:85)(cid:70)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:84)(cid:73)(cid:66)(cid:83)(cid:70)(cid:84) 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(cid:1)(cid:56)(cid:70)(cid:67)(cid:84)(cid:74)(cid:85)(cid:70)(cid:27)(cid:1)www.tatapower.com (cid:87)(cid:74)(cid:10)(cid:1) (cid:56)(cid:73)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:77)(cid:74)(cid:84)(cid:85)(cid:70)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:27)(cid:1)(cid:58)(cid:70)(cid:84)(cid:1) (cid:87)(cid:74)(cid:74)(cid:10)(cid:1) (cid:47)(cid:66)(cid:78)(cid:70)(cid:13)(cid:1)(cid:34)(cid:69)(cid:69)(cid:83)(cid:70)(cid:84)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:80)(cid:79)(cid:85)(cid:66)(cid:68)(cid:85)(cid:1)(cid:69)(cid:70)(cid:85)(cid:66)(cid:74)(cid:77)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:51)(cid:70)(cid:72)(cid:74)(cid:84)(cid:85)(cid:83)(cid:66)(cid:83)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:1)(cid:34)(cid:72)(cid:70)(cid:79)(cid:85)(cid:13)(cid:1)(cid:74)(cid:71)(cid:1)(cid:66)(cid:79)(cid:90)(cid:27) TSR Darashaw Limited 6-10, Haji Moosa Patrawala Industrial Estate, 20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011. (cid:53)(cid:70)(cid:77)(cid:15)(cid:27)(cid:1)(cid:17)(cid:19)(cid:19)(cid:1)(cid:23)(cid:23)(cid:22)(cid:23)(cid:1)(cid:25)(cid:21)(cid:25)(cid:21)(cid:1)(cid:39)(cid:66)(cid:89)(cid:15)(cid:27)(cid:1)(cid:17)(cid:19)(cid:19)(cid:1)(cid:23)(cid:23)(cid:22)(cid:23)(cid:1)(cid:25)(cid:21)(cid:26)(cid:21)(cid:1)(cid:38)(cid:14)(cid:78)(cid:66)(cid:74)(cid:77)(cid:27)(cid:1)csg-unit@tsrdarashaw.com(cid:1)(cid:56)(cid:70)(cid:67)(cid:84)(cid:74)(cid:85)(cid:70)(cid:27)(cid:1)www.tsrdarashaw.com (cid:1) PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY (cid:34)(cid:77)(cid:77)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:66)(cid:68)(cid:85)(cid:74)(cid:87)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:68)(cid:80)(cid:79)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:18)(cid:17)(cid:6)(cid:1)(cid:80)(cid:83)(cid:1)(cid:78)(cid:80)(cid:83)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:85)(cid:80)(cid:85)(cid:66)(cid:77)(cid:1)(cid:85)(cid:86)(cid:83)(cid:79)(cid:80)(cid:87)(cid:70)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:84)(cid:73)(cid:66)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:70)(cid:69)(cid:27)(cid:14) 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 82.60 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 Af-Taab Investment Co. Ltd. Corporate Centre, B Block, 34, Sant Tukaram Road, (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Tata Power Trading Co. Ltd. Carnac Receiving Station, 34, Sant Tukaram Road, (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Powerlinks Transmission Ltd.# 10th Floor, DLF Tower-A, District Center-Jasola, (cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:19)(cid:22) Maithon Power Ltd. Corporate Center, 34, Sant Tukaram Road, (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:47)(cid:38)(cid:45)(cid:36)(cid:48)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:46)(cid:42)(cid:37)(cid:36)(cid:13)(cid:1)(cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:1)(cid:38)(cid:45)(cid:1)(cid:23)(cid:13)(cid:1)(cid:53)(cid:53)(cid:36)(cid:1)(cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:34)(cid:83)(cid:70)(cid:66)(cid:13)(cid:1) (cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:84)(cid:1)(cid:59)(cid:80)(cid:79)(cid:70)(cid:13)(cid:1)(cid:46)(cid:66)(cid:73)(cid:66)(cid:81)(cid:70)(cid:13)(cid:1)(cid:47)(cid:66)(cid:87)(cid:74)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:24)(cid:18)(cid:17) Tatanet Services Ltd. (cid:46)(cid:42)(cid:37)(cid:36)(cid:13)(cid:1)(cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:1)(cid:38)(cid:45)(cid:1)(cid:23)(cid:13)(cid:1)(cid:53)(cid:53)(cid:36)(cid:1)(cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:34)(cid:83)(cid:70)(cid:66)(cid:13)(cid:1) (cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:84)(cid:1)(cid:59)(cid:80)(cid:79)(cid:70)(cid:13)(cid:1)(cid:46)(cid:66)(cid:73)(cid:66)(cid:81)(cid:70)(cid:13)(cid:1)(cid:47)(cid:66)(cid:87)(cid:74)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:24)(cid:18)(cid:17) (cid:54)(cid:23)(cid:22)(cid:26)(cid:26)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:24)(cid:26)(cid:49)(cid:45)(cid:36)(cid:17)(cid:19)(cid:18)(cid:17)(cid:20)(cid:24) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:20)(cid:49)(cid:45)(cid:36)(cid:18)(cid:21)(cid:20)(cid:24)(cid:24)(cid:17) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:22)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:18)(cid:49)(cid:45)(cid:36)(cid:18)(cid:18)(cid:17)(cid:24)(cid:18)(cid:21) Subsidiary 51 Section 2(87) (cid:54)(cid:24)(cid:21)(cid:25)(cid:26)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:23)(cid:24)(cid:19)(cid:26)(cid:24) Subsidiary 74 Section 2(87) (cid:45)(cid:20)(cid:19)(cid:19)(cid:17)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:21)(cid:17)(cid:49)(cid:45)(cid:36)(cid:17)(cid:17)(cid:20)(cid:18)(cid:23)(cid:21) Subsidiary 50.04 Section 2(87) (cid:54)(cid:23)(cid:24)(cid:18)(cid:19)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:25)(cid:24)(cid:49)(cid:45)(cid:36)(cid:17)(cid:21)(cid:21)(cid:20)(cid:22)(cid:18) Subsidiary 50.04 Section 2(87) 40 I Board’s Report 100th Annual Report 2018-19 Sl. No. 7 8 (cid:26) 10 11 12 13 14 15 16 17 18 (cid:18)(cid:26) Name and Address of the Company * CIN/GLN Holding/ Subsidiary/ Associate % of shares held * Applicable Section (cid:47)(cid:70)(cid:77)(cid:68)(cid:80)(cid:1)(cid:47)(cid:70)(cid:85)(cid:88)(cid:80)(cid:83)(cid:76)(cid:1)(cid:49)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:85)(cid:84)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) EL-6, TTC Industrial Area, MIDC, Mahape, (cid:47)(cid:66)(cid:87)(cid:74)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:24)(cid:18)(cid:17) Industrial Energy Ltd.# (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:54)(cid:85)(cid:74)(cid:77)(cid:74)(cid:85)(cid:90)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Tata Power Delhi Distribution Ltd. (cid:47)(cid:37)(cid:49)(cid:45)(cid:1)(cid:41)(cid:80)(cid:86)(cid:84)(cid:70)(cid:13)(cid:1)(cid:41)(cid:86)(cid:69)(cid:84)(cid:80)(cid:79)(cid:1)(cid:45)(cid:74)(cid:79)(cid:70)(cid:84)(cid:13)(cid:1)(cid:44)(cid:74)(cid:79)(cid:72)(cid:84)(cid:88)(cid:66)(cid:90)(cid:1)(cid:36)(cid:66)(cid:78)(cid:81)(cid:13)(cid:1) (cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:47)(cid:37)(cid:49)(cid:45)(cid:1)(cid:42)(cid:79)(cid:71)(cid:83)(cid:66)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) Jeevan Bharati Tower #1, 10th Floor, 124, (cid:36)(cid:80)(cid:79)(cid:79)(cid:66)(cid:86)(cid:72)(cid:73)(cid:85)(cid:1)(cid:36)(cid:74)(cid:83)(cid:68)(cid:86)(cid:84)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:17)(cid:18) (cid:36)(cid:80)(cid:66)(cid:84)(cid:85)(cid:66)(cid:77)(cid:1)(cid:40)(cid:86)(cid:75)(cid:66)(cid:83)(cid:66)(cid:85)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:20)(cid:21)(cid:13)(cid:1)(cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Tata Power Renewable Energy Ltd. (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:70)(cid:70)(cid:79)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) B Block, Corporate Centre, 34, Sant Tukaram Road, (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:52)(cid:86)(cid:81)(cid:66)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:71)(cid:66)(cid:83)(cid:78)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:47)(cid:74)(cid:87)(cid:66)(cid:69)(cid:70)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:71)(cid:66)(cid:83)(cid:78)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:1) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:49)(cid:80)(cid:80)(cid:77)(cid:66)(cid:87)(cid:66)(cid:69)(cid:74)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:71)(cid:66)(cid:83)(cid:78)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:1) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Indo Rama Renewables Jath Ltd. (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26)(cid:1) (cid:55)(cid:66)(cid:72)(cid:66)(cid:83)(cid:66)(cid:74)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:71)(cid:66)(cid:83)(cid:78)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:54)(cid:20)(cid:19)(cid:20)(cid:17)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:23)(cid:49)(cid:45)(cid:36)(cid:19)(cid:25)(cid:22)(cid:23)(cid:26)(cid:20) Subsidiary 50.04 Section 2(87) (cid:54)(cid:24)(cid:21)(cid:26)(cid:26)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:24)(cid:49)(cid:45)(cid:36)(cid:18)(cid:23)(cid:24)(cid:23)(cid:19)(cid:20) Subsidiary 74 Section 2(87) (cid:54)(cid:24)(cid:21)(cid:26)(cid:26)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:24)(cid:49)(cid:45)(cid:36)(cid:18)(cid:23)(cid:25)(cid:19)(cid:26)(cid:18) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:26)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:18)(cid:49)(cid:45)(cid:36)(cid:18)(cid:18)(cid:18)(cid:22)(cid:19)(cid:23) Subsidiary 51 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:18)(cid:49)(cid:45)(cid:36)(cid:19)(cid:19)(cid:20)(cid:26)(cid:25)(cid:19) Subsidiary 51 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:19)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:23)(cid:49)(cid:45)(cid:36)(cid:18)(cid:25)(cid:19)(cid:19)(cid:18)(cid:20) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:25)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:24)(cid:49)(cid:45)(cid:36)(cid:18)(cid:23)(cid:25)(cid:20)(cid:18)(cid:21) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:25)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:18)(cid:49)(cid:45)(cid:36)(cid:19)(cid:18)(cid:18)(cid:25)(cid:22)(cid:18) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:22)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:17)(cid:25)(cid:24)(cid:25) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:22)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:18)(cid:18)(cid:18)(cid:21) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:23)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:18)(cid:25)(cid:26)(cid:26) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:20)(cid:18)(cid:23)(cid:26)(cid:23)(cid:20) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:24)(cid:49)(cid:45)(cid:36)(cid:19)(cid:26)(cid:18)(cid:24)(cid:17)(cid:25) Subsidiary 72 Section 2(87) 20 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:51)(cid:70)(cid:79)(cid:70)(cid:88)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:20)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:26)(cid:49)(cid:45)(cid:36)(cid:18)(cid:26)(cid:24)(cid:17)(cid:19)(cid:18) Subsidiary 100 Section 2(87) 21 22 (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Clean Sustainable Solar Energy Pvt. Ltd. (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Dreisatz Mysolar24 Pvt. Ltd. (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25)(cid:1) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:21)(cid:49)(cid:53)(cid:36)(cid:19)(cid:22)(cid:21)(cid:20)(cid:24)(cid:18) Subsidiary (cid:26)(cid:26)(cid:15)(cid:26)(cid:26) Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:19)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:26)(cid:49)(cid:53)(cid:36)(cid:18)(cid:26)(cid:22)(cid:17)(cid:25)(cid:19) Subsidiary 100 Section 2(87) 23 MI Mysolar24 Pvt. Ltd. (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:26)(cid:49)(cid:53)(cid:36)(cid:18)(cid:26)(cid:22)(cid:17)(cid:26)(cid:17) Subsidiary 100 Section 2(87) (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) Board’s Report I 41 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Name and Address of the Company * CIN/GLN The Tata Power Company Limited Holding/ Subsidiary/ Associate % of shares held * Applicable Section (cid:47)(cid:80)(cid:83)(cid:85)(cid:73)(cid:88)(cid:70)(cid:84)(cid:85)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:49)(cid:87)(cid:85)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Solarsys Renewable Energy Pvt. Ltd. (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:25)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:25)(cid:49)(cid:53)(cid:36)(cid:18)(cid:25)(cid:19)(cid:24)(cid:23)(cid:19) Subsidiary 100 Section 2(87) (cid:54)(cid:24)(cid:21)(cid:26)(cid:26)(cid:26)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:21)(cid:49)(cid:53)(cid:36)(cid:18)(cid:20)(cid:18)(cid:17)(cid:24)(cid:21) Subsidiary 100 Section 2(87) Sl. No. 24 25 26 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:40)(cid:43)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:21)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:25)(cid:49)(cid:45)(cid:36)(cid:18)(cid:25)(cid:21)(cid:18)(cid:20)(cid:21) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 27 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:51)(cid:66)(cid:75)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:22)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:17)(cid:19)(cid:17)(cid:26)(cid:24) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 28 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:35)(cid:41)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:17)(cid:26)(cid:23)(cid:18)(cid:22) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) (cid:19)(cid:26) (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:46)(cid:41)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:25)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:23)(cid:49)(cid:45)(cid:36)(cid:18)(cid:23)(cid:22)(cid:23)(cid:24)(cid:20) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 30 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:1)(cid:51)(cid:43)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:25)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:23)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:21)(cid:19)(cid:18)(cid:26) Subsidiary 100 Section 2(87) (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) 31 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:34)(cid:49)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:25)(cid:49)(cid:45)(cid:36)(cid:18)(cid:24)(cid:25)(cid:24)(cid:23)(cid:26) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 32 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:44)(cid:34)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:20)(cid:20)(cid:21)(cid:18)(cid:25) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 33 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:46)(cid:49)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:17)(cid:23)(cid:19)(cid:24)(cid:22) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 34 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:49)(cid:35)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:21)(cid:19)(cid:19)(cid:17) Subsidiary 100 Section 2(87) (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) 35 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:51)(cid:43)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:1) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:22)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:17)(cid:23)(cid:21)(cid:24)(cid:22) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 36 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:53)(cid:47)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:24)(cid:24)(cid:20)(cid:23)(cid:21) Subsidiary 100 Section 2(87) (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) 37 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:51)(cid:43)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:18)(cid:49)(cid:45)(cid:36)(cid:19)(cid:18)(cid:20)(cid:21)(cid:24)(cid:17) Subsidiary 100 Section 2(87) (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) 38 (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:54)(cid:83)(cid:75)(cid:66)(cid:1)(cid:34)(cid:79)(cid:75)(cid:66)(cid:83)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:17)(cid:49)(cid:45)(cid:36)(cid:19)(cid:25)(cid:19)(cid:23)(cid:19)(cid:24) Subsidiary 100 Section 2(87) (cid:36)(cid:14)(cid:18)(cid:21)(cid:13)(cid:1)(cid:45)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:36)(cid:73)(cid:74)(cid:83)(cid:66)(cid:72)(cid:1)(cid:38)(cid:79)(cid:68)(cid:77)(cid:66)(cid:87)(cid:70)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:44)(cid:66)(cid:74)(cid:77)(cid:66)(cid:84)(cid:73)(cid:1)(cid:14)(cid:1)(cid:18)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:21)(cid:25) (cid:20)(cid:26) (cid:56)(cid:66)(cid:77)(cid:88)(cid:73)(cid:66)(cid:79)(cid:1)(cid:54)(cid:83)(cid:75)(cid:66)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:1) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:23)(cid:49)(cid:45)(cid:36)(cid:18)(cid:23)(cid:22)(cid:26)(cid:23)(cid:21) Subsidiary 100 Section 2(87) 40 41 (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1)(cid:35)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1) (cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Dugar Hydro Power Ltd.# (cid:52)(cid:66)(cid:79)(cid:85)(cid:80)(cid:84)(cid:73)(cid:1)(cid:35)(cid:73)(cid:66)(cid:87)(cid:66)(cid:79)(cid:13)(cid:1)(cid:18)(cid:84)(cid:85)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:47)(cid:70)(cid:66)(cid:83)(cid:1)(cid:40)(cid:80)(cid:87)(cid:85)(cid:15)(cid:1)(cid:46)(cid:74)(cid:69)(cid:69)(cid:77)(cid:70)(cid:1)(cid:52)(cid:68)(cid:73)(cid:80)(cid:80)(cid:77)(cid:13)(cid:1) (cid:46)(cid:70)(cid:73)(cid:77)(cid:74)(cid:13)(cid:1)(cid:49)(cid:48)(cid:1)(cid:44)(cid:66)(cid:84)(cid:86)(cid:78)(cid:81)(cid:85)(cid:74)(cid:13)(cid:1)(cid:52)(cid:73)(cid:74)(cid:78)(cid:77)(cid:66)(cid:1)(cid:18)(cid:24)(cid:18)(cid:1)(cid:17)(cid:17)(cid:26) Tata Power Solar Systems Ltd. (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:24)(cid:25)(cid:13)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:1)(cid:36)(cid:74)(cid:85)(cid:90)(cid:13)(cid:1)(cid:41)(cid:80)(cid:84)(cid:86)(cid:83)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1) Bengaluru 560 100 (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:18)(cid:41)(cid:49)(cid:19)(cid:17)(cid:18)(cid:18)(cid:49)(cid:45)(cid:36)(cid:17)(cid:20)(cid:18)(cid:23)(cid:19)(cid:23) Subsidiary 50.001 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:23)(cid:44)(cid:34)(cid:18)(cid:26)(cid:25)(cid:26)(cid:49)(cid:45)(cid:36)(cid:17)(cid:20)(cid:21)(cid:26)(cid:25)(cid:26) Subsidiary 100 Section 2(87) 42 I Board’s Report 100th Annual Report 2018-19 Name and Address of the Company * CIN/GLN Holding/ Subsidiary/ Associate % of shares held * Applicable Section Sl. No. 42 43 44 45 46 47 48 (cid:21)(cid:26) 50 51 52 53 56 57 58 (cid:22)(cid:26) 60 Chirasthaayee Saurya Ltd. (cid:47)(cid:80)(cid:15)(cid:24)(cid:25)(cid:13)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:80)(cid:79)(cid:74)(cid:68)(cid:1)(cid:36)(cid:74)(cid:85)(cid:90)(cid:13)(cid:1)(cid:41)(cid:80)(cid:84)(cid:86)(cid:83)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1) Bengaluru 560 100 Tata Power Jamshedpur Distribution Ltd. (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:36)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:13)(cid:1) A Block, 34, Sant Tukaram Road, Carnac Bunder, (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Tata Ceramics Ltd. 26 Cochin Special Economic Zone, Kakkanad, Ernakulam 682 037 TP Ajmer Distribution Ltd. (cid:68)(cid:16)(cid:80)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:36)(cid:80)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:20)(cid:21)(cid:13)(cid:1)(cid:52)(cid:66)(cid:79)(cid:85)(cid:1)(cid:53)(cid:86)(cid:76)(cid:66)(cid:83)(cid:66)(cid:78)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1) (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Bhira Investments Ltd. (cid:24)(cid:25)(cid:1)(cid:52)(cid:73)(cid:70)(cid:79)(cid:85)(cid:80)(cid:79)(cid:1)(cid:56)(cid:66)(cid:90)(cid:13)(cid:1)(cid:18)(cid:24)(cid:14)(cid:17)(cid:18)(cid:16)(cid:17)(cid:19)(cid:13)(cid:1)(cid:52)(cid:74)(cid:79)(cid:72)(cid:66)(cid:81)(cid:80)(cid:83)(cid:70)(cid:1)(cid:17)(cid:24)(cid:26)(cid:18)(cid:19)(cid:17) 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. (cid:24)(cid:25)(cid:1)(cid:52)(cid:73)(cid:70)(cid:79)(cid:85)(cid:80)(cid:79)(cid:1)(cid:56)(cid:66)(cid:90)(cid:13)(cid:1)(cid:18)(cid:24)(cid:14)(cid:17)(cid:18)(cid:16)(cid:17)(cid:19)(cid:13)(cid:1)(cid:52)(cid:74)(cid:79)(cid:72)(cid:66)(cid:81)(cid:80)(cid:83)(cid:70)(cid:1)(cid:17)(cid:24)(cid:26)(cid:18)(cid:19)(cid:17) Energy Eastern Pte. Ltd. (cid:24)(cid:25)(cid:1)(cid:52)(cid:73)(cid:70)(cid:79)(cid:85)(cid:80)(cid:79)(cid:1)(cid:56)(cid:66)(cid:90)(cid:13)(cid:1)(cid:18)(cid:24)(cid:14)(cid:17)(cid:18)(cid:16)(cid:17)(cid:19)(cid:13)(cid:1)(cid:52)(cid:74)(cid:79)(cid:72)(cid:66)(cid:81)(cid:80)(cid:83)(cid:70)(cid:1)(cid:17)(cid:24)(cid:26)(cid:18)(cid:19)(cid:17) Tata Power International Pte. Ltd. (cid:24)(cid:25)(cid:1)(cid:52)(cid:73)(cid:70)(cid:79)(cid:85)(cid:80)(cid:79)(cid:1)(cid:56)(cid:66)(cid:90)(cid:13)(cid:1)(cid:18)(cid:24)(cid:14)(cid:17)(cid:18)(cid:16)(cid:17)(cid:19)(cid:13)(cid:1)(cid:52)(cid:74)(cid:79)(cid:72)(cid:66)(cid:81)(cid:80)(cid:83)(cid:70)(cid:1)(cid:17)(cid:24)(cid:26)(cid:18)(cid:19)(cid:17) (cid:39)(cid:66)(cid:83)(cid:1)(cid:38)(cid:66)(cid:84)(cid:85)(cid:70)(cid:83)(cid:79)(cid:1)(cid:47)(cid:66)(cid:85)(cid:86)(cid:83)(cid:66)(cid:77)(cid:1)(cid:51)(cid:70)(cid:84)(cid:80)(cid:86)(cid:83)(cid:68)(cid:70)(cid:84)(cid:1)(cid:45)(cid:45)(cid:36)(cid:13)(cid:1) Russian Federation, 683024, Kamchatka Krai, Petropavlovsk-Kamchatsky city, (cid:21)(cid:26)(cid:1)(cid:59)(cid:70)(cid:83)(cid:76)(cid:66)(cid:77)(cid:79)(cid:66)(cid:90)(cid:66)(cid:1)(cid:84)(cid:85)(cid:83)(cid:15)(cid:13)(cid:1)(cid:80)(cid:243)(cid:68)(cid:70)(cid:1)(cid:20)(cid:19)(cid:24)(cid:15) PT Sumber Energi Andalan Tbk. Prince Centre 8th Floor, JI. Jend. Sudirman Kav 3-4, Jakarta 10220, Indonesia 54 Tubed Coal Mines Ltd. Century Bhavan, 3rd Floor, Dr. Annie Besant Road, (cid:56)(cid:80)(cid:83)(cid:77)(cid:74)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:20)(cid:17) 55 Mandakini Coal Company Ltd. (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:18)(cid:19)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:35)(cid:14)(cid:18)(cid:13)(cid:1)(cid:45)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1)(cid:52)(cid:73)(cid:80)(cid:81)(cid:81)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:13)(cid:1) (cid:55)(cid:66)(cid:84)(cid:66)(cid:79)(cid:85)(cid:1)(cid:44)(cid:86)(cid:79)(cid:75)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:24)(cid:17) Solace Land Holding Ltd. (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:18)(cid:19)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:35)(cid:14)(cid:18)(cid:13)(cid:1)(cid:45)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1)(cid:52)(cid:73)(cid:80)(cid:81)(cid:81)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:13)(cid:1) (cid:55)(cid:66)(cid:84)(cid:66)(cid:79)(cid:85)(cid:1)(cid:44)(cid:86)(cid:79)(cid:75)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:24)(cid:17) (cid:40)(cid:66)(cid:78)(cid:78)(cid:66)(cid:1)(cid:45)(cid:66)(cid:79)(cid:69)(cid:1)(cid:41)(cid:80)(cid:77)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:18)(cid:19)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:35)(cid:14)(cid:18)(cid:13)(cid:1)(cid:45)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1)(cid:52)(cid:73)(cid:80)(cid:81)(cid:81)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:13)(cid:1) (cid:55)(cid:66)(cid:84)(cid:66)(cid:79)(cid:85)(cid:1)(cid:44)(cid:86)(cid:79)(cid:75)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:24)(cid:17) Beta Land Holding Ltd. (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:18)(cid:19)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:35)(cid:14)(cid:18)(cid:13)(cid:1)(cid:45)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1)(cid:52)(cid:73)(cid:80)(cid:81)(cid:81)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:13)(cid:1) (cid:55)(cid:66)(cid:84)(cid:66)(cid:79)(cid:85)(cid:1)(cid:44)(cid:86)(cid:79)(cid:75)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:24)(cid:17) (cid:40)(cid:74)(cid:79)(cid:72)(cid:70)(cid:83)(cid:1)(cid:45)(cid:66)(cid:79)(cid:69)(cid:1)(cid:41)(cid:80)(cid:77)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:18)(cid:19)(cid:13)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:35)(cid:14)(cid:18)(cid:13)(cid:1)(cid:45)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1)(cid:52)(cid:73)(cid:80)(cid:81)(cid:81)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:77)(cid:70)(cid:89)(cid:13)(cid:1) (cid:55)(cid:66)(cid:84)(cid:66)(cid:79)(cid:85)(cid:1)(cid:44)(cid:86)(cid:79)(cid:75)(cid:13)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:37)(cid:70)(cid:77)(cid:73)(cid:74)(cid:1)(cid:18)(cid:18)(cid:17)(cid:1)(cid:17)(cid:24)(cid:17) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:18)(cid:44)(cid:34)(cid:19)(cid:17)(cid:18)(cid:23)(cid:49)(cid:45)(cid:36)(cid:17)(cid:26)(cid:21)(cid:18)(cid:17)(cid:17) Subsidiary 100 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:20)(cid:24)(cid:22)(cid:25)(cid:18) Subsidiary 100 Section 2(87) (cid:54)(cid:19)(cid:23)(cid:26)(cid:20)(cid:20)(cid:44)(cid:45)(cid:18)(cid:26)(cid:26)(cid:18)(cid:49)(cid:45)(cid:36)(cid:17)(cid:17)(cid:23)(cid:17)(cid:18)(cid:25) Subsidiary 57.07 Section 2(87) (cid:54)(cid:21)(cid:17)(cid:18)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:24)(cid:49)(cid:45)(cid:36)(cid:19)(cid:26)(cid:20)(cid:26)(cid:18)(cid:21) Subsidiary 100 Section 2(87) (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary 100 Section 2(87) Subsidiary (cid:26)(cid:19)(cid:15)(cid:22)(cid:17) Section 2(87) (cid:54)(cid:18)(cid:17)(cid:18)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:17)(cid:24)(cid:49)(cid:45)(cid:36)(cid:18)(cid:24)(cid:21)(cid:21)(cid:23)(cid:23) Associate 40 Section 2(6) (cid:54)(cid:18)(cid:17)(cid:18)(cid:17)(cid:17)(cid:37)(cid:45)(cid:19)(cid:17)(cid:17)(cid:25)(cid:49)(cid:45)(cid:36)(cid:18)(cid:24)(cid:22)(cid:21)(cid:18)(cid:24) Associate 33.33 Section 2(6) (cid:54)(cid:24)(cid:17)(cid:18)(cid:17)(cid:26)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:21)(cid:19)(cid:18)(cid:24)(cid:24) Associate 33.33 Section 2(6) (cid:54)(cid:24)(cid:17)(cid:18)(cid:17)(cid:26)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:21)(cid:19)(cid:20)(cid:17)(cid:20) Associate 33.33 Section 2(6) (cid:54)(cid:24)(cid:17)(cid:18)(cid:17)(cid:17)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:21)(cid:22)(cid:18)(cid:19)(cid:24) Associate 33.33 Section 2(6) (cid:54)(cid:24)(cid:17)(cid:18)(cid:17)(cid:26)(cid:37)(cid:45)(cid:19)(cid:17)(cid:18)(cid:19)(cid:49)(cid:45)(cid:36)(cid:19)(cid:21)(cid:22)(cid:18)(cid:19)(cid:25) Associate 33.33 Section 2(6) I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S (cid:58)(cid:66)(cid:84)(cid:73)(cid:78)(cid:86)(cid:79)(cid:1)(cid:38)(cid:79)(cid:72)(cid:74)(cid:79)(cid:70)(cid:70)(cid:83)(cid:84)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) (cid:37)(cid:73)(cid:66)(cid:83)(cid:66)(cid:87)(cid:74)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:13)(cid:1)(cid:47)(cid:70)(cid:89)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:46)(cid:52)(cid:38)(cid:35)(cid:13)(cid:1)(cid:46)(cid:66)(cid:85)(cid:86)(cid:79)(cid:72)(cid:66)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:18)(cid:26) (cid:54)(cid:19)(cid:26)(cid:18)(cid:17)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:23)(cid:23)(cid:49)(cid:45)(cid:36)(cid:17)(cid:17)(cid:23)(cid:18)(cid:17)(cid:26) Associate 27.27 Section 2(6) Board’s Report I 43 The Tata Power Company Limited Name and Address of the Company * CIN/GLN Holding/ Subsidiary/ Associate (cid:54)(cid:21)(cid:22)(cid:19)(cid:17)(cid:20)(cid:53)(cid:40)(cid:18)(cid:26)(cid:24)(cid:26)(cid:49)(cid:45)(cid:36)(cid:17)(cid:22)(cid:24)(cid:21)(cid:20)(cid:18) Associate % of shares held * 47.78 Applicable Section Section 2(6) Sl. No. 61 62 63 64 65 66 67 68 (cid:23)(cid:26) 70 71 72 73 74 75 76 77 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 (cid:47)(cid:70)(cid:77)(cid:74)(cid:85)(cid:80)(cid:1)(cid:52)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:84)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) 205-208, Millennium Business Park, Building 2, Sector 1, (cid:46)(cid:66)(cid:73)(cid:66)(cid:81)(cid:70)(cid:13)(cid:1)(cid:47)(cid:66)(cid:87)(cid:74)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:24)(cid:17)(cid:18) Cennergi Pty. Ltd. Exxaro Corporate Centre, Roger Dyason Road, Block A, (cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:1)(cid:21)(cid:13)(cid:1)(cid:49)(cid:83)(cid:70)(cid:85)(cid:80)(cid:83)(cid:74)(cid:66)(cid:1)(cid:56)(cid:70)(cid:84)(cid:85)(cid:13)(cid:1)(cid:17)(cid:18)(cid:25)(cid:20)(cid:13)(cid:1)(cid:52)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:34)(cid:71)(cid:83)(cid:74)(cid:68)(cid:66) (cid:53)(cid:84)(cid:74)(cid:85)(cid:84)(cid:74)(cid:76)(cid:66)(cid:78)(cid:78)(cid:66)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:86)(cid:79)(cid:74)(cid:85)(cid:90)(cid:1)(cid:56)(cid:74)(cid:79)(cid:69)(cid:1)(cid:39)(cid:66)(cid:83)(cid:78)(cid:1)(cid:9)(cid:49)(cid:85)(cid:90)(cid:15)(cid:10)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) Exxaro Corporate Centre, Roger Dyason Road, Block A, (cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:1)(cid:21)(cid:13)(cid:1)(cid:49)(cid:83)(cid:70)(cid:85)(cid:80)(cid:83)(cid:74)(cid:66)(cid:1)(cid:56)(cid:70)(cid:84)(cid:85)(cid:13)(cid:1)(cid:17)(cid:18)(cid:25)(cid:20)(cid:13)(cid:1)(cid:52)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:34)(cid:71)(cid:83)(cid:74)(cid:68)(cid:66) Amakhala Emoyeni RE Project 1 (Pty.) Ltd. Exxaro Corporate Centre, Roger Dyason Road, Block A, (cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:1)(cid:21)(cid:13)(cid:1)(cid:49)(cid:83)(cid:70)(cid:85)(cid:80)(cid:83)(cid:74)(cid:66)(cid:1)(cid:56)(cid:70)(cid:84)(cid:85)(cid:13)(cid:1)(cid:17)(cid:18)(cid:25)(cid:20)(cid:13)(cid:1)(cid:52)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:34)(cid:71)(cid:83)(cid:74)(cid:68)(cid:66) PT Mitratama Perkasa Menara Anugrah Lantai 10, Kantor Taman E3.3, (cid:45)(cid:80)(cid:85)(cid:1)(cid:25)(cid:15)(cid:23)(cid:14)(cid:25)(cid:15)(cid:24)(cid:13)(cid:1)(cid:43)(cid:42)(cid:1)(cid:37)(cid:51)(cid:1)(cid:42)(cid:69)(cid:70)(cid:1)(cid:34)(cid:79)(cid:66)(cid:76)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:1)(cid:40)(cid:69)(cid:70)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:14)(cid:835)(cid:44)(cid:66)(cid:88)(cid:66)(cid:84)(cid:66)(cid:79)(cid:1) (cid:46)(cid:70)(cid:72)(cid:66)(cid:1)(cid:44)(cid:86)(cid:79)(cid:74)(cid:79)(cid:72)(cid:66)(cid:79)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:22)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) (cid:49)(cid:53)(cid:1)(cid:46)(cid:74)(cid:85)(cid:83)(cid:66)(cid:85)(cid:66)(cid:78)(cid:66)(cid:1)(cid:54)(cid:84)(cid:66)(cid:73)(cid:66) Menara Anugrah Lantai 10, Kantor Taman E3.3, (cid:45)(cid:80)(cid:85)(cid:1)(cid:25)(cid:15)(cid:23)(cid:14)(cid:25)(cid:15)(cid:24)(cid:13)(cid:1)(cid:43)(cid:42)(cid:1)(cid:37)(cid:51)(cid:1)(cid:42)(cid:69)(cid:70)(cid:1)(cid:34)(cid:79)(cid:66)(cid:76)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:1)(cid:40)(cid:69)(cid:70)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:14)(cid:835)(cid:44)(cid:66)(cid:88)(cid:66)(cid:84)(cid:66)(cid:79)(cid:1) (cid:46)(cid:70)(cid:72)(cid:66)(cid:1)(cid:44)(cid:86)(cid:79)(cid:74)(cid:79)(cid:72)(cid:66)(cid:79)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:22)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) PT Arutmin Indonesia 14th Floor, Bakrie Tower Complex, Rasuna Epicentrum, (cid:43)(cid:66)(cid:77)(cid:66)(cid:79)(cid:1)(cid:41)(cid:15)(cid:51)(cid:15)(cid:1)(cid:51)(cid:66)(cid:84)(cid:86)(cid:79)(cid:66)(cid:1)(cid:52)(cid:66)(cid:74)(cid:69)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:21)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) PT Kaltim Prima Coal Bakrie Tower, 15th Floor, JI. H.R. Rasuna Said, Kel. Karet Kuningan Kec. Setiabudi, Jakarta Selatan, (cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:21)(cid:17) Indocoal Resources (Cayman) Ltd. (cid:49)(cid:15)(cid:48)(cid:15)(cid:1)(cid:35)(cid:80)(cid:89)(cid:1)(cid:20)(cid:17)(cid:26)(cid:40)(cid:53)(cid:13)(cid:1)(cid:54)(cid:72)(cid:77)(cid:66)(cid:79)(cid:69)(cid:1)(cid:41)(cid:80)(cid:86)(cid:84)(cid:70)(cid:13)(cid:1)(cid:52)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:36)(cid:73)(cid:86)(cid:83)(cid:68)(cid:73)(cid:1)(cid:52)(cid:85)(cid:83)(cid:70)(cid:70)(cid:85)(cid:13)(cid:1) (cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:70)(cid:1)(cid:53)(cid:80)(cid:88)(cid:79)(cid:13)(cid:1)(cid:40)(cid:83)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:13)(cid:1)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:1)(cid:42)(cid:84)(cid:77)(cid:66)(cid:79)(cid:69)(cid:84) Indocoal KPC Resources (Cayman) Ltd. (cid:36)(cid:74)(cid:85)(cid:68)(cid:80)(cid:1)(cid:53)(cid:83)(cid:86)(cid:84)(cid:85)(cid:70)(cid:70)(cid:84)(cid:1)(cid:9)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:10)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15)(cid:13)(cid:1)(cid:25)(cid:26)(cid:1)(cid:47)(cid:70)(cid:89)(cid:86)(cid:84)(cid:1)(cid:56)(cid:66)(cid:90)(cid:13)(cid:1) (cid:36)(cid:66)(cid:78)(cid:66)(cid:79)(cid:66)(cid:1)(cid:35)(cid:66)(cid:90)(cid:13)(cid:1)(cid:49)(cid:15)(cid:48)(cid:15)(cid:1)(cid:35)(cid:80)(cid:89)(cid:1)(cid:20)(cid:18)(cid:18)(cid:17)(cid:23)(cid:13)(cid:1)(cid:40)(cid:83)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:1)(cid:44)(cid:58)(cid:18)(cid:14)(cid:18)(cid:19)(cid:17)(cid:22)(cid:13)(cid:1) Cayman Islands PT Indocoal Kalsel Resources M&C Corporate Service Ltd. (cid:49)(cid:48)(cid:1)(cid:35)(cid:48)(cid:57)(cid:1)(cid:20)(cid:17)(cid:26)(cid:1)(cid:40)(cid:53)(cid:1)(cid:54)(cid:72)(cid:77)(cid:66)(cid:79)(cid:69)(cid:1)(cid:41)(cid:80)(cid:86)(cid:84)(cid:70)(cid:13)(cid:1)(cid:52)(cid:80)(cid:86)(cid:85)(cid:73)(cid:1)(cid:36)(cid:73)(cid:86)(cid:83)(cid:68)(cid:73)(cid:1)(cid:52)(cid:85)(cid:83)(cid:70)(cid:70)(cid:85)(cid:13)(cid:1) (cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:70)(cid:1)(cid:53)(cid:80)(cid:88)(cid:79)(cid:1)(cid:40)(cid:83)(cid:66)(cid:79)(cid:69)(cid:1)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:13)(cid:1)(cid:36)(cid:66)(cid:90)(cid:78)(cid:66)(cid:79)(cid:1)(cid:42)(cid:84)(cid:77)(cid:66)(cid:79)(cid:69) PT Indocoal Kaltim Resources (cid:35)(cid:66)(cid:76)(cid:83)(cid:74)(cid:70)(cid:1)(cid:53)(cid:80)(cid:88)(cid:70)(cid:83)(cid:13)(cid:1)(cid:18)(cid:19)(cid:85)(cid:73)(cid:1)(cid:248)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:51)(cid:66)(cid:84)(cid:86)(cid:79)(cid:66)(cid:1)(cid:38)(cid:81)(cid:74)(cid:68)(cid:70)(cid:79)(cid:85)(cid:83)(cid:86)(cid:78) Jl. H.R. Rasuna Said, Jakarta, (cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:21)(cid:17) Dagachhu Hydro Power Corporation Ltd. Khebisa, Dzongkhang: Dagana, Bhutan Candice Investments Pte. Ltd. 60 Paya Lebar Road, #08-43 Paya Lebar Square, (cid:52)(cid:74)(cid:79)(cid:72)(cid:66)(cid:81)(cid:80)(cid:83)(cid:70)(cid:1)(cid:21)(cid:17)(cid:26)(cid:17)(cid:22)(cid:18)(cid:1) 44 I Board’s Report (cid:54)(cid:21)(cid:22)(cid:19)(cid:17)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:19)(cid:18)(cid:49)(cid:45)(cid:36)(cid:17)(cid:17)(cid:17)(cid:25)(cid:23)(cid:23) Associate 33.14 Section 2(6) (cid:54)(cid:22)(cid:18)(cid:26)(cid:17)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:25)(cid:25)(cid:49)(cid:53)(cid:36)(cid:17)(cid:21)(cid:26)(cid:26)(cid:19)(cid:23) Associate 33.21 Section 2(6) (cid:54)(cid:24)(cid:19)(cid:26)(cid:17)(cid:17)(cid:46)(cid:41)(cid:18)(cid:26)(cid:26)(cid:22)(cid:49)(cid:45)(cid:36)(cid:17)(cid:25)(cid:25)(cid:25)(cid:18)(cid:23) Associate 28.15 Section 2(6) (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company Associate 50 Section 2(6) Associate 50 Section 2(6) Associate 50 Section 2(6) Associate 28.38 Section 2(6) Associate 28.38 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate Associate 26 30 Section 2(6) Section 2(6) 100th Annual Report 2018-19 Name and Address of the Company * CIN/GLN Sl. No. 78 (cid:24)(cid:26) 80 81 82 83 84 85 86 87 88 (cid:25)(cid:26) (cid:26)(cid:17) (cid:26)(cid:18) (cid:26)(cid:19) (cid:26)(cid:20) (cid:26)(cid:21) (cid:49)(cid:53)(cid:1)(cid:47)(cid:86)(cid:84)(cid:66)(cid:1)(cid:53)(cid:66)(cid:78)(cid:67)(cid:66)(cid:79)(cid:72)(cid:1)(cid:49)(cid:83)(cid:66)(cid:85)(cid:66)(cid:78)(cid:66) Menara Anugrah Lantai 10, Kantor Taman E3.3, Lot 8.6- (cid:25)(cid:15)(cid:24)(cid:13)(cid:1)(cid:43)(cid:42)(cid:1)(cid:37)(cid:51)(cid:1)(cid:42)(cid:69)(cid:70)(cid:1)(cid:34)(cid:79)(cid:66)(cid:76)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:1)(cid:40)(cid:69)(cid:70)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:14)(cid:1)(cid:44)(cid:66)(cid:88)(cid:66)(cid:84)(cid:66)(cid:79)(cid:1)(cid:46)(cid:70)(cid:72)(cid:66)(cid:1) (cid:44)(cid:86)(cid:79)(cid:74)(cid:79)(cid:72)(cid:66)(cid:79)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:22)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) PT Marvel Capital Indonesia Menara Anugrah Lantai 10, Kantor Taman E3.3, Lot 8.6- (cid:25)(cid:15)(cid:24)(cid:13)(cid:1)(cid:43)(cid:42)(cid:1)(cid:37)(cid:51)(cid:1)(cid:42)(cid:69)(cid:70)(cid:1)(cid:34)(cid:79)(cid:66)(cid:76)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:1)(cid:40)(cid:69)(cid:70)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:14)(cid:835)(cid:44)(cid:66)(cid:88)(cid:66)(cid:84)(cid:66)(cid:79)(cid:1)(cid:46)(cid:70)(cid:72)(cid:66)(cid:1) (cid:44)(cid:86)(cid:79)(cid:74)(cid:79)(cid:72)(cid:66)(cid:79)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:22)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) PT Dwikarya Prima Abadi Menara Anugrah Lantai 10, Kantor Taman E3.3, Lot 8.6- (cid:25)(cid:15)(cid:24)(cid:13)(cid:1)(cid:43)(cid:42)(cid:1)(cid:37)(cid:51)(cid:1)(cid:42)(cid:69)(cid:70)(cid:1)(cid:34)(cid:79)(cid:66)(cid:76)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:1)(cid:40)(cid:69)(cid:70)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72)(cid:14)(cid:835)(cid:44)(cid:66)(cid:88)(cid:66)(cid:84)(cid:66)(cid:79)(cid:1)(cid:46)(cid:70)(cid:72)(cid:66)(cid:1) (cid:44)(cid:86)(cid:79)(cid:74)(cid:79)(cid:72)(cid:66)(cid:79)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:18)(cid:19)(cid:26)(cid:22)(cid:17)(cid:13)(cid:1)(cid:42)(cid:79)(cid:69)(cid:80)(cid:79)(cid:70)(cid:84)(cid:74)(cid:66) PT Kalimantan Prima Power (cid:40)(cid:69)(cid:15)(cid:1)(cid:46)(cid:70)(cid:79)(cid:66)(cid:83)(cid:66)(cid:1)(cid:37)(cid:86)(cid:85)(cid:66)(cid:1)(cid:45)(cid:85)(cid:15)(cid:1)(cid:19)(cid:1)(cid:56)(cid:74)(cid:79)(cid:72)(cid:1)(cid:34)(cid:1)(cid:43)(cid:77)(cid:15)(cid:1)(cid:41)(cid:15)(cid:1)(cid:51)(cid:15)(cid:1)(cid:51)(cid:66)(cid:84)(cid:86)(cid:79)(cid:66)(cid:1)(cid:52)(cid:66)(cid:74)(cid:69)(cid:1)(cid:44)(cid:66)(cid:87)(cid:15)(cid:1) (cid:35)(cid:14)(cid:26)(cid:1)(cid:52)(cid:70)(cid:85)(cid:74)(cid:67)(cid:86)(cid:69)(cid:74)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:52)(cid:70)(cid:77)(cid:66)(cid:85)(cid:66)(cid:79)(cid:1)(cid:18)(cid:19)(cid:26)(cid:18)(cid:17) (cid:49)(cid:53)(cid:1)(cid:40)(cid:86)(cid:83)(cid:86)(cid:73)(cid:1)(cid:34)(cid:72)(cid:86)(cid:79)(cid:72) (cid:40)(cid:69)(cid:15)(cid:1)(cid:40)(cid:83)(cid:66)(cid:73)(cid:66)(cid:1)(cid:44)(cid:66)(cid:81)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1)(cid:45)(cid:85)(cid:15)(cid:1)(cid:19)(cid:13)(cid:1)(cid:43)(cid:77)(cid:15)(cid:1)(cid:44)(cid:70)(cid:78)(cid:66)(cid:79)(cid:72)(cid:1)(cid:51)(cid:66)(cid:90)(cid:66)(cid:1)(cid:47)(cid:80)(cid:15)(cid:1)(cid:21)(cid:13) Bangka, Jakarta Selatan PT Citra Prima Buana (cid:40)(cid:69)(cid:15)(cid:1)(cid:46)(cid:70)(cid:79)(cid:66)(cid:83)(cid:66)(cid:1)(cid:37)(cid:86)(cid:85)(cid:66)(cid:1)(cid:45)(cid:85)(cid:15)(cid:1)(cid:19)(cid:1)(cid:56)(cid:74)(cid:79)(cid:72)(cid:1)(cid:34)(cid:13)(cid:1)(cid:43)(cid:77)(cid:15)(cid:1)(cid:41)(cid:15)(cid:1)(cid:51)(cid:15)(cid:1)(cid:51)(cid:66)(cid:84)(cid:86)(cid:79)(cid:66)(cid:1)(cid:52)(cid:66)(cid:74)(cid:69)(cid:1)(cid:44)(cid:66)(cid:87)(cid:15)(cid:1) (cid:35)(cid:14)(cid:26)(cid:1)(cid:52)(cid:70)(cid:85)(cid:74)(cid:67)(cid:86)(cid:69)(cid:74)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:52)(cid:70)(cid:77)(cid:66)(cid:85)(cid:66)(cid:79)(cid:1)(cid:18)(cid:19)(cid:26)(cid:18)(cid:17) PT Citra Kusuma Perdana (cid:40)(cid:69)(cid:15)(cid:1)(cid:46)(cid:70)(cid:79)(cid:66)(cid:83)(cid:66)(cid:1)(cid:37)(cid:86)(cid:85)(cid:66)(cid:1)(cid:45)(cid:85)(cid:15)(cid:1)(cid:19)(cid:1)(cid:56)(cid:74)(cid:79)(cid:72)(cid:1)(cid:34)(cid:13)(cid:1)(cid:43)(cid:77)(cid:15)(cid:1)(cid:41)(cid:15)(cid:1)(cid:51)(cid:15)(cid:1)(cid:51)(cid:66)(cid:84)(cid:86)(cid:79)(cid:66)(cid:1)(cid:52)(cid:66)(cid:74)(cid:69)(cid:1)(cid:44)(cid:66)(cid:87)(cid:15)(cid:1) (cid:35)(cid:14)(cid:26)(cid:1)(cid:52)(cid:70)(cid:85)(cid:74)(cid:67)(cid:86)(cid:69)(cid:74)(cid:13)(cid:1)(cid:43)(cid:66)(cid:76)(cid:66)(cid:83)(cid:85)(cid:66)(cid:1)(cid:52)(cid:70)(cid:77)(cid:66)(cid:85)(cid:66)(cid:79)(cid:1)(cid:18)(cid:19)(cid:26)(cid:18)(cid:17) PT Baramulti Sukessarana Tbk Sahid Sudirman Center, 56C, Jl. Jendral Sudirman Kav. 86, Jakarta 10220, Indonesia (cid:49)(cid:53)(cid:1)(cid:34)(cid:79)(cid:85)(cid:66)(cid:79)(cid:72)(cid:1)(cid:40)(cid:86)(cid:79)(cid:86)(cid:79)(cid:72)(cid:1)(cid:46)(cid:70)(cid:83)(cid:66)(cid:85)(cid:86)(cid:84) Sahid Sudirman Center, 56C, Jl. Jendral Sudirman Kav. 86, Jakarta 10220, Indonesia (cid:34)(cid:69)(cid:75)(cid:66)(cid:83)(cid:74)(cid:84)(cid:85)(cid:84)(cid:82)(cid:66)(cid:77)(cid:74)(cid:1)(cid:47)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:77)(cid:66)(cid:79)(cid:69)(cid:84)(cid:1)(cid:35)(cid:15)(cid:55)(cid:15) Luna Arena, Herikerbergweg 238, 1101 CM Amsterdam, (cid:49)(cid:15)(cid:48)(cid:15)(cid:1)(cid:35)(cid:80)(cid:89)(cid:1)(cid:19)(cid:20)(cid:20)(cid:26)(cid:20)(cid:13)(cid:1)(cid:18)(cid:18)(cid:17)(cid:17)(cid:1)(cid:37)(cid:56)(cid:1)(cid:34)(cid:78)(cid:84)(cid:85)(cid:70)(cid:83)(cid:69)(cid:66)(cid:78)(cid:13)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:77)(cid:66)(cid:79)(cid:69)(cid:84) (cid:34)(cid:69)(cid:75)(cid:66)(cid:83)(cid:74)(cid:84)(cid:85)(cid:84)(cid:82)(cid:66)(cid:77)(cid:74)(cid:1)(cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:74)(cid:66)(cid:1)(cid:45)(cid:45)(cid:36) (cid:23)(cid:13)(cid:1)(cid:42)(cid:15)(cid:1)(cid:34)(cid:67)(cid:66)(cid:84)(cid:73)(cid:74)(cid:69)(cid:91)(cid:70)(cid:1)(cid:52)(cid:85)(cid:83)(cid:15)(cid:13)(cid:1)(cid:34)(cid:81)(cid:1)(cid:19)(cid:14)(cid:20)(cid:13)(cid:1)(cid:35)(cid:66)(cid:85)(cid:86)(cid:78)(cid:74)(cid:13)(cid:1)(cid:23)(cid:17)(cid:18)(cid:17)(cid:13)(cid:1)(cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:74)(cid:66) (cid:44)(cid:80)(cid:83)(cid:80)(cid:78)(cid:76)(cid:73)(cid:70)(cid:85)(cid:74)(cid:1)(cid:47)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:77)(cid:66)(cid:79)(cid:69)(cid:84)(cid:1)(cid:35)(cid:15)(cid:55)(cid:15) Luna Arena, Herikerbergweg 238, 1101 CM Amsterdam, (cid:49)(cid:15)(cid:48)(cid:15)(cid:1)(cid:35)(cid:80)(cid:89)(cid:1)(cid:19)(cid:20)(cid:20)(cid:26)(cid:20)(cid:13)(cid:1)(cid:18)(cid:18)(cid:17)(cid:17)(cid:1)(cid:37)(cid:56)(cid:1)(cid:34)(cid:78)(cid:84)(cid:85)(cid:70)(cid:83)(cid:69)(cid:66)(cid:78)(cid:13)(cid:1)(cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:70)(cid:85)(cid:73)(cid:70)(cid:83)(cid:77)(cid:66)(cid:79)(cid:69)(cid:84) (cid:44)(cid:80)(cid:83)(cid:80)(cid:78)(cid:76)(cid:73)(cid:70)(cid:85)(cid:74)(cid:1)(cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:74)(cid:66)(cid:1)(cid:45)(cid:15)(cid:45)(cid:15)(cid:36) (cid:23)(cid:13)(cid:1)(cid:42)(cid:15)(cid:1)(cid:34)(cid:67)(cid:66)(cid:84)(cid:73)(cid:74)(cid:69)(cid:91)(cid:70)(cid:1)(cid:52)(cid:85)(cid:83)(cid:15)(cid:13)(cid:1)(cid:34)(cid:81)(cid:1)(cid:19)(cid:14)(cid:20)(cid:13)(cid:1)(cid:35)(cid:66)(cid:85)(cid:86)(cid:78)(cid:74)(cid:13)(cid:1)(cid:23)(cid:17)(cid:18)(cid:17)(cid:13)(cid:1)(cid:40)(cid:70)(cid:80)(cid:83)(cid:72)(cid:74)(cid:66) Itezhi Tezhi Power Corporation Ltd. (cid:54)(cid:79)(cid:74)(cid:85)(cid:1)(cid:47)(cid:80)(cid:15)(cid:1)(cid:18)(cid:20)(cid:37)(cid:13)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:39)(cid:77)(cid:80)(cid:80)(cid:83)(cid:13)(cid:1)(cid:49)(cid:66)(cid:79)(cid:72)(cid:66)(cid:70)(cid:66)(cid:1)(cid:48)(cid:243)(cid:68)(cid:70)(cid:1)(cid:49)(cid:66)(cid:83)(cid:76)(cid:1)(cid:49)(cid:77)(cid:80)(cid:85)(cid:1)(cid:19)(cid:20)(cid:24)(cid:21)(cid:13)(cid:1) (cid:40)(cid:83)(cid:70)(cid:66)(cid:85)(cid:1)(cid:38)(cid:66)(cid:84)(cid:85)(cid:1)(cid:51)(cid:80)(cid:66)(cid:69)(cid:1)(cid:52)(cid:73)(cid:80)(cid:88)(cid:1)(cid:72)(cid:83)(cid:80)(cid:86)(cid:79)(cid:69)(cid:84)(cid:1)(cid:34)(cid:83)(cid:70)(cid:66)(cid:1)(cid:49)(cid:80)(cid:84)(cid:85)(cid:79)(cid:70)(cid:85)(cid:1)(cid:19)(cid:20)(cid:26)(cid:13)(cid:1) (cid:49)(cid:83)(cid:74)(cid:87)(cid:66)(cid:85)(cid:70)(cid:1)(cid:35)(cid:66)(cid:72)(cid:1)(cid:38)(cid:25)(cid:26)(cid:18)(cid:1)(cid:46)(cid:66)(cid:79)(cid:69)(cid:66)(cid:73)(cid:74)(cid:77)(cid:77)(cid:13)(cid:1)(cid:45)(cid:86)(cid:84)(cid:66)(cid:76)(cid:66)(cid:13)(cid:1)(cid:59)(cid:66)(cid:78)(cid:67)(cid:74)(cid:66)(cid:15) (cid:51)(cid:70)(cid:84)(cid:86)(cid:83)(cid:72)(cid:70)(cid:79)(cid:85)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:55)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84)(cid:1)(cid:49)(cid:85)(cid:70)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) 1 Raffles Place, #13-01, One Raffles Place, Singapore 048616 LTH Milcom Pvt. Ltd. L & T House, Ballard Estate, Mumbai 400 001 (cid:51)(cid:70)(cid:79)(cid:66)(cid:84)(cid:68)(cid:70)(cid:79)(cid:85)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:55)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84)(cid:1)(cid:49)(cid:87)(cid:85)(cid:15)(cid:1)(cid:45)(cid:85)(cid:69)(cid:15) Corporate Centre, B Block, 34, Sant Tukaram Road, (cid:36)(cid:66)(cid:83)(cid:79)(cid:66)(cid:68)(cid:1)(cid:35)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:13)(cid:1)(cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:1)(cid:21)(cid:17)(cid:17)(cid:1)(cid:17)(cid:17)(cid:26) Holding/ Subsidiary/ Associate % of shares held * Applicable Section Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 30 Section 2(6) Associate 26 Section 2(6) Associate 26 Section 2(6) Associate 40 Section 2(6) Associate Associate Associate Associate 40 40 40 50 Section 2(6) Section 2(6) Section 2(6) Section 2(6) Associate 26 Section 2(6) (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13) foreign company (cid:54)(cid:24)(cid:21)(cid:26)(cid:26)(cid:26)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:22)(cid:49)(cid:53)(cid:36)(cid:19)(cid:23)(cid:24)(cid:22)(cid:17)(cid:19) Associate 33.33 Section 2(6) (cid:54)(cid:21)(cid:17)(cid:20)(cid:17)(cid:17)(cid:46)(cid:41)(cid:19)(cid:17)(cid:18)(cid:25)(cid:39)(cid:53)(cid:36)(cid:20)(cid:18)(cid:22)(cid:18)(cid:21)(cid:26) Associate 26 Section 2(6) * Includes direct and indirect subsidiaries, joint ventures and associates. # Classified as joint ventures as per Ind AS. Board’s Report I 45 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S IV. i) SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity): The Tata Power Company Limited Category-wise Share Holding Category of Shareholders A. Promoters (including Promoter Group) (1) Indian (cid:66)(cid:10)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:86)(cid:66)(cid:77)(cid:84)(cid:16)(cid:41)(cid:54)(cid:39) (cid:67)(cid:10)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:66)(cid:77)(cid:1)(cid:40)(cid:80)(cid:87)(cid:85)(cid:15) (cid:68)(cid:10)(cid:1)(cid:52)(cid:85)(cid:66)(cid:85)(cid:70)(cid:1)(cid:40)(cid:80)(cid:87)(cid:85)(cid:15)(cid:9)(cid:84)(cid:10) d) Bodies Corporate (cid:70)(cid:10)(cid:1)(cid:35)(cid:66)(cid:79)(cid:76)(cid:16)(cid:39)(cid:42) f) Any Other (Trust) Sub-Total (A) (1): (2) Foreign (cid:66)(cid:10)(cid:1)(cid:47)(cid:51)(cid:42)(cid:84)(cid:1)(cid:14)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:87)(cid:74)(cid:69)(cid:86)(cid:66)(cid:77)(cid:84) b) Other - Individuals c) Bodies Corporate (cid:69)(cid:10)(cid:1)(cid:35)(cid:66)(cid:79)(cid:76)(cid:84)(cid:16)(cid:39)(cid:42) e) Any Other (specify) Sub-Total (A) (2): Total Shareholding of Promoters (A) =(A)(1)+(A)(2) B. Public Shareholding (1) Institutions (cid:66)(cid:10)(cid:1)(cid:46)(cid:86)(cid:85)(cid:86)(cid:66)(cid:77)(cid:1)(cid:39)(cid:86)(cid:79)(cid:69)(cid:84)(cid:16)(cid:54)(cid:53)(cid:42) (cid:67)(cid:10)(cid:1)(cid:35)(cid:66)(cid:79)(cid:76)(cid:16)(cid:39)(cid:42) (cid:68)(cid:10)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:66)(cid:77)(cid:1)(cid:40)(cid:80)(cid:87)(cid:85)(cid:15) (cid:69)(cid:10)(cid:1)(cid:52)(cid:85)(cid:66)(cid:85)(cid:70)(cid:1)(cid:40)(cid:80)(cid:87)(cid:85)(cid:15)(cid:9)(cid:84)(cid:10) (cid:70)(cid:10)(cid:1)(cid:55)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:36)(cid:66)(cid:81)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1)(cid:39)(cid:86)(cid:79)(cid:69)(cid:84) f) Alternate Investment Funds g) Insurance Companies h) FIIs (cid:74)(cid:10)(cid:1)(cid:39)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1)(cid:55)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:1)(cid:36)(cid:66)(cid:81)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1)(cid:39)(cid:86)(cid:79)(cid:69)(cid:84) j) Others (specify) j-i) Foreign Portfolio Investors (Corporate) (cid:75)(cid:14)(cid:74)(cid:74)(cid:10)(cid:1)(cid:39)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1)(cid:47)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:84)(cid:1)(cid:14)(cid:1)(cid:37)(cid:51) j-iii) Foreign Bodies - DR j-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 (cid:86)(cid:81)(cid:85)(cid:80)(cid:1)(cid:846)(cid:1)(cid:18)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1) ii) Individual shareholders holding nominal share capital (cid:74)(cid:79)(cid:1)(cid:70)(cid:89)(cid:68)(cid:70)(cid:84)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:846)(cid:1)(cid:18)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1) c) Others (specify) (cid:47)(cid:35)(cid:39)(cid:36)(cid:84)(cid:1)(cid:83)(cid:70)(cid:72)(cid:74)(cid:84)(cid:85)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:51)(cid:35)(cid:42) Trust Directors & their relatives (cid:42)(cid:38)(cid:49)(cid:39)(cid:1)(cid:52)(cid:86)(cid:84)(cid:81)(cid:70)(cid:79)(cid:84)(cid:70)(cid:1)(cid:34)(cid:16)(cid:36) Foreign Bodies Sub-Total (B) (2): Total Public Shareholding (B) = (B)(1)+(B)(2) TOTAL (A)+(B) (cid:36)(cid:15)(cid:1)(cid:52)(cid:73)(cid:66)(cid:83)(cid:70)(cid:84)(cid:1)(cid:73)(cid:70)(cid:77)(cid:69)(cid:1)(cid:67)(cid:90)(cid:1)(cid:36)(cid:86)(cid:84)(cid:85)(cid:80)(cid:69)(cid:74)(cid:66)(cid:79)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:40)(cid:37)(cid:51)(cid:1)(cid:7)(cid:1)(cid:34)(cid:37)(cid:51)(cid:84) GRAND TOTAL (A)+(B)+(C) No. of Shares held at the beginning of the year (as on 01.04.2018) Physical Total Demat % of Total Shares No. of Shares held at the end of the year (as on 31.03.2019) Physical Total Demat % Change during the year % of Total Shares 0 0 0 (cid:25)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:21)(cid:21)(cid:13)(cid:19)(cid:19)(cid:23) 0 6,56,240 89,32,00,466 0 0 0 0 0 0 89,32,00,466 14,55,00,772 (cid:18)(cid:13)(cid:23)(cid:21)(cid:13)(cid:26)(cid:18)(cid:13)(cid:25)(cid:22)(cid:18) 0 44,300 0 8,00,000 (cid:21)(cid:24)(cid:13)(cid:21)(cid:26)(cid:13)(cid:23)(cid:23)(cid:13)(cid:25)(cid:23)(cid:18) 1,08,11,182 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,33,880 4,28,562 0 2,47,120 0 0 (cid:19)(cid:26)(cid:13)(cid:18)(cid:17)(cid:17) 53,480 0 0 0 0 (cid:25)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:21)(cid:21)(cid:13)(cid:19)(cid:19)(cid:23) 0 6,56,240 89,32,00,466 0 0 0 0 0 0 89,32,00,466 14,56,34,652 (cid:18)(cid:13)(cid:23)(cid:26)(cid:13)(cid:19)(cid:17)(cid:13)(cid:21)(cid:18)(cid:20) 0 (cid:19)(cid:13)(cid:26)(cid:18)(cid:13)(cid:21)(cid:19)(cid:17) 0 8,00,000 (cid:21)(cid:24)(cid:13)(cid:21)(cid:26)(cid:13)(cid:26)(cid:22)(cid:13)(cid:26)(cid:23)(cid:18) 1,08,64,662 0 (cid:24)(cid:22)(cid:13)(cid:17)(cid:18)(cid:13)(cid:23)(cid:26)(cid:13)(cid:17)(cid:19)(cid:17) 2,82,200 (cid:18)(cid:26)(cid:13)(cid:20)(cid:21)(cid:17) 0 1,39,90,85,526 0 0 0 0 8,92,142 (cid:24)(cid:22)(cid:13)(cid:17)(cid:18)(cid:13)(cid:23)(cid:26)(cid:13)(cid:17)(cid:19)(cid:17) 2,82,200 (cid:18)(cid:26)(cid:13)(cid:20)(cid:21)(cid:17) 0 1,39,99,77,668 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 5.38 0.63 0.00 0.01 0.00 0.03 17.56 0.40 0.00 27.74 0.01 0.00 0.00 51.76 0 0 0 (cid:25)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:21)(cid:21)(cid:13)(cid:19)(cid:19)(cid:23) 0 0 89,25,44,226 0 0 0 0 0 0 89,25,44,226 (cid:19)(cid:25)(cid:13)(cid:24)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:24)(cid:24)(cid:25) 2,13,28,182 66,63,070 44,300 0 23,65,000 35,46,58,303 82,67,700 0 71,03,88,567 0 0 0 1,39,16,40,900 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,28,880 4,23,122 0 2,47,120 0 0 (cid:19)(cid:26)(cid:13)(cid:18)(cid:17)(cid:17) 50,480 0 0 0 0 0 8,78,702 0 0 0 (cid:25)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:21)(cid:21)(cid:13)(cid:19)(cid:19)(cid:23) 0 0 89,25,44,226 0 0 0 0 0 0 89,25,44,226 28,80,54,658 2,17,51,304 66,63,070 (cid:19)(cid:13)(cid:26)(cid:18)(cid:13)(cid:21)(cid:19)(cid:17) 0 23,65,000 35,46,87,403 83,18,180 0 71,03,88,567 0 0 0 1,39,25,19,602 0.00 0.00 0.00 33.00 0.00 0.00 33.00 0.00 0.00 0.00 0.00 0.00 0.00 33.00 10.65 0.80 0.25 0.01 0.00 (cid:17)(cid:15)(cid:17)(cid:26) 13.11 0.31 0.00 26.26 0.00 0.00 0.00 51.48 2,32,32,886 4,000 11,54,047 400 (cid:19)(cid:13)(cid:21)(cid:20)(cid:13)(cid:25)(cid:23)(cid:13)(cid:26)(cid:20)(cid:20) 4,400 (cid:17)(cid:15)(cid:26)(cid:17) 0.00 4,00,04,666 4,000 10,51,534 400 4,10,56,200 4,400 1.52 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 -0.02 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 5.27 0.18 0.25 0.00 0.00 0.06 -4.45 (cid:14)(cid:17)(cid:15)(cid:17)(cid:26) 0.00 -1.47 -0.01 0.00 0.00 -0.28 0.62 0.00 (cid:19)(cid:26)(cid:13)(cid:23)(cid:25)(cid:13)(cid:21)(cid:19)(cid:13)(cid:22)(cid:21)(cid:21) (cid:21)(cid:13)(cid:25)(cid:25)(cid:13)(cid:26)(cid:24)(cid:13)(cid:21)(cid:26)(cid:24) 34,57,40,041 12.78 (cid:19)(cid:26)(cid:13)(cid:23)(cid:18)(cid:13)(cid:25)(cid:23)(cid:13)(cid:18)(cid:21)(cid:23) 4,26,14,185 33,88,00,331 12.53 -0.26 (cid:19)(cid:13)(cid:24)(cid:25)(cid:13)(cid:26)(cid:17)(cid:13)(cid:24)(cid:18)(cid:21) (cid:18)(cid:20)(cid:13)(cid:24)(cid:26)(cid:13)(cid:22)(cid:25)(cid:17) (cid:19)(cid:13)(cid:26)(cid:19)(cid:13)(cid:24)(cid:17)(cid:13)(cid:19)(cid:26)(cid:21) 1.08 (cid:19)(cid:13)(cid:25)(cid:17)(cid:13)(cid:17)(cid:26)(cid:13)(cid:20)(cid:22)(cid:18) 12,34,100 (cid:19)(cid:13)(cid:26)(cid:19)(cid:13)(cid:21)(cid:20)(cid:13)(cid:21)(cid:22)(cid:18) 1.08 0.00 (cid:22)(cid:26)(cid:13)(cid:20)(cid:22)(cid:26) (cid:19)(cid:26)(cid:13)(cid:24)(cid:19)(cid:13)(cid:17)(cid:20)(cid:19) 36,862 (cid:23)(cid:19)(cid:13)(cid:22)(cid:25)(cid:13)(cid:19)(cid:26)(cid:22) 0 35,72,96,692 1,75,63,82,218 2,64,95,82,684 (cid:19)(cid:25)(cid:13)(cid:22)(cid:22)(cid:13)(cid:26)(cid:23)(cid:17) 2,65,24,38,644 0 (cid:26)(cid:13)(cid:26)(cid:17)(cid:17) 0 0 0 5,14,41,424 5,23,33,566 5,23,33,566 1,300 5,23,34,866 (cid:22)(cid:26)(cid:13)(cid:20)(cid:22)(cid:26) (cid:19)(cid:26)(cid:13)(cid:25)(cid:18)(cid:13)(cid:26)(cid:20)(cid:19) 36,862 (cid:23)(cid:19)(cid:13)(cid:22)(cid:25)(cid:13)(cid:19)(cid:26)(cid:22) 0 40,87,38,116 1,80,87,15,784 2,70,19,16,250 28,57,260 2,70,47,73,510 0.00 0.11 0.00 0.23 0.00 15.11 66.87 99.89 0.11 100.00 65,737 18,11,560 36,862 (cid:23)(cid:25)(cid:13)(cid:20)(cid:23)(cid:13)(cid:26)(cid:21)(cid:18) 0 37,29,55,263 1,76,45,96,163 2,65,71,40,389 18,31,000 2,65,89,71,389 0 (cid:19)(cid:18)(cid:13)(cid:26)(cid:17)(cid:17) 0 0 0 4,49,22,119 4,58,00,821 4,58,00,821 1,300 4,58,02,121 65,737 18,33,460 36,862 (cid:23)(cid:25)(cid:13)(cid:20)(cid:23)(cid:13)(cid:26)(cid:21)(cid:18) 0 41,78,77,382 1,81,03,96,984 2,70,29,41,210 18,32,300 2,70,47,73,510 0.00 0.07 0.00 0.25 0.00 15.45 66.93 99.93 0.07 100.00 0.00 -0.04 0.00 0.02 0.00 0.34 0.06 0.04 -0.04 0.00 46 I Board’s Report 100th Annual Report 2018-19 ii) Shareholding of Promoters (including Promoter Group) Sl. No. Shareholder’s Name 1 2 3 4 5 6 7 8 (cid:26) Tata Sons Private Limited (Promoter) Tata Steel Limited * Tata Investment Corporation Limited * Tata Industries Limited * Ewart Investments Limited * Tata Motors Finance Limited * Sir Dorabji Tata Trust * Sir Ratan Tata Trust * JRD Tata Trust * Total No. of Shares Shareholding at the beginning of the year (as on 01.04.2018) % of total Shares of the company 31.05 % of Shares Pledged/ encumbered to total shares (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19)(cid:1) 1.43 No. of Shares Shareholding at the end of the year (as on 31.03.2019) % of total Shares of the company 31.05 % of Shares Pledged/ encumbered to total shares (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19)(cid:1) (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22)(cid:1) 68,47,842 45,35,200 (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24)(cid:1) (cid:26)(cid:13)(cid:18)(cid:19)(cid:17)(cid:1) 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 0.00 0.00 0.00 0.00 1.43 (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22)(cid:1) 68,47,842 45,35,200 (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24)(cid:1) (cid:1)(cid:26)(cid:13)(cid:18)(cid:19)(cid:17)(cid:1) 0 0 0 89,25,44,226 1.45 0.25 0.17 0.08 0.00 0.00 0.00 0.00 33.00 % change in shareholding during the year 0.00 0.00 0.00 0.00 0.00 0.00 -0.02 0.00 0.00 -0.02 1.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.43 (cid:1) iii) (cid:11)(cid:1)(cid:49)(cid:66)(cid:83)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:49)(cid:83)(cid:80)(cid:78)(cid:80)(cid:85)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81) 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 Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year (as on 01.04.2018) No. of shares % of total shares of the company 31.05 (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19) - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22) 1.45 68,47,842 0.25 45,35,200 0.17 (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24) 0.08 (cid:26)(cid:13)(cid:18)(cid:19)(cid:17) 0.00 1 2 3 4 5 6 Tata Sons Private Limited (Promoter) Tata Steel Limited * Tata Investment Corporation Limited * Tata Industries Limited * Ewart Investments Limited * Tata Motors Finance Limited * No. of shares % of total No. of shares % of total shares of the company 0 - 0 - 0 - 0 - 0 - 0.00 - 0.00 - 0.00 - 0.00 - 0.00 - (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19) (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19) (cid:25)(cid:20)(cid:13)(cid:26)(cid:24)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:25)(cid:19) (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22) (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22) (cid:20)(cid:13)(cid:26)(cid:18)(cid:13)(cid:19)(cid:19)(cid:13)(cid:24)(cid:19)(cid:22) 68,47,842 68,47,842 68,47,842 45,35,200 45,35,200 45,35,200 (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24) (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24) (cid:19)(cid:19)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:22)(cid:24) (cid:26)(cid:13)(cid:18)(cid:19)(cid:17) shares of the company 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 0.00 Board’s Report I 47 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Sl. No. Name of the Shareholder Shareholding at the beginning of the year Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year (as on 01.04.2018) No. of shares % of total shares of the company 7 8 Sir Dorabji Tata Trust * 5,72,880 0.02 Sir Ratan Tata Trust * 70,160 0.00 (cid:26) JRD Tata Trust * 13,200 0.00 No. of shares % of total shares of the company 0.00 - 0 - -5,72,880 - -0.02 - -70,160 - -13,200 - 0.00 - 0.00 - No. of shares % of total shares of the company 0.00 0.00 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (cid:26)(cid:13)(cid:18)(cid:19)(cid:17) (cid:26)(cid:13)(cid:18)(cid:19)(cid:17) 5,72,880 0 0 70,160 0 0 13,200 0 0 - (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) 11.05.2018 (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) 11.05.2018 (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) 11.05.2018 (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) At the end of the year Sale of Shares At the end of the year Sale of Shares At the end of the year Sale of Shares At the end of the year *(cid:1)(cid:49)(cid:66)(cid:83)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:49)(cid:83)(cid:80)(cid:78)(cid:80)(cid:85)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81) Shareholding Pattern of Top 10 Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs): iv) Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company (cid:20)(cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:23)(cid:17)(cid:13)(cid:20)(cid:23)(cid:21) 11.76 1 Life Insurance Corporation of India No. of shares % of total No. of shares % of total shares of the company shares of the company 11.05.2018 Sale of Shares 18.05.2018 Sale of Shares 01.06.2018 Sale of Shares 08.06.2018 Sale of Shares 15.06.2018 Sale of Shares 06.07.2018 Sale of Shares 13.07.2018 Sale of Shares 03.08.2018 Sale of Shares 21.12.2018 Sale of Shares 28.12.2018 Sale of Shares 31.12.2018 Sale of Shares 31.12.2018 Purchase of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:18)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:25)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares -73,70,367 -1,01,522 -45,31,748 -24,13,205 -42,70,445 -31,85,000 -32,23,175 (cid:14)(cid:23)(cid:13)(cid:20)(cid:26)(cid:13)(cid:25)(cid:23)(cid:24) -37,58,368 (cid:14)(cid:21)(cid:18)(cid:13)(cid:24)(cid:18)(cid:13)(cid:20)(cid:18)(cid:26) (cid:14)(cid:18)(cid:13)(cid:24)(cid:22)(cid:13)(cid:18)(cid:25)(cid:13)(cid:19)(cid:26)(cid:24) 1,64,41,017 -26,41,783 -7,03,713 (cid:14)(cid:24)(cid:26)(cid:13)(cid:21)(cid:21)(cid:13)(cid:19)(cid:24)(cid:20) (cid:14)(cid:26)(cid:24)(cid:13)(cid:19)(cid:25)(cid:13)(cid:19)(cid:23)(cid:24) -57,17,354 (cid:14)(cid:18)(cid:22)(cid:13)(cid:26)(cid:19)(cid:13)(cid:26)(cid:17)(cid:18) (cid:20)(cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:23)(cid:17)(cid:13)(cid:20)(cid:23)(cid:21) (cid:20)(cid:18)(cid:13)(cid:17)(cid:22)(cid:13)(cid:25)(cid:26)(cid:13)(cid:26)(cid:26)(cid:24) 31,04,88,475 (cid:20)(cid:17)(cid:13)(cid:22)(cid:26)(cid:13)(cid:22)(cid:23)(cid:13)(cid:24)(cid:19)(cid:24) 30,35,43,522 (cid:19)(cid:26)(cid:13)(cid:26)(cid:19)(cid:13)(cid:24)(cid:20)(cid:13)(cid:17)(cid:24)(cid:24) (cid:19)(cid:26)(cid:13)(cid:23)(cid:17)(cid:13)(cid:25)(cid:25)(cid:13)(cid:17)(cid:24)(cid:24) (cid:19)(cid:26)(cid:13)(cid:19)(cid:25)(cid:13)(cid:23)(cid:21)(cid:13)(cid:26)(cid:17)(cid:19) (cid:19)(cid:26)(cid:13)(cid:19)(cid:19)(cid:13)(cid:19)(cid:22)(cid:13)(cid:17)(cid:20)(cid:22) 28,84,66,667 (cid:19)(cid:25)(cid:13)(cid:21)(cid:19)(cid:13)(cid:26)(cid:22)(cid:13)(cid:20)(cid:21)(cid:25) 26,67,77,051 28,32,18,068 28,05,76,285 (cid:19)(cid:24)(cid:13)(cid:26)(cid:25)(cid:13)(cid:24)(cid:19)(cid:13)(cid:22)(cid:24)(cid:19) (cid:19)(cid:24)(cid:13)(cid:18)(cid:26)(cid:13)(cid:19)(cid:25)(cid:13)(cid:19)(cid:26)(cid:26) 26,22,00,032 25,64,82,678 (cid:19)(cid:22)(cid:13)(cid:21)(cid:25)(cid:13)(cid:25)(cid:26)(cid:13)(cid:24)(cid:24)(cid:24) -0.27 0.00 -0.17 (cid:14)(cid:17)(cid:15)(cid:17)(cid:26) -0.16 -0.12 -0.12 -0.02 -0.14 -0.15 -0.65 0.61 -0.10 -0.03 (cid:14)(cid:17)(cid:15)(cid:19)(cid:26) -0.36 -0.21 -0.06 11.76 11.48 11.48 11.31 11.22 11.06 (cid:18)(cid:17)(cid:15)(cid:26)(cid:22) 10.83 10.80 10.67 10.51 (cid:26)(cid:15)(cid:25)(cid:23) 10.47 10.37 10.35 10.05 (cid:26)(cid:15)(cid:23)(cid:26) (cid:26)(cid:15)(cid:21)(cid:25) (cid:26)(cid:15)(cid:21)(cid:19) 48 I Board’s Report 100th Annual Report 2018-19 Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company No. of shares % of total No. of shares % of total shares of the company shares of the company (cid:18)(cid:22)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares -53,22,042 (cid:14)(cid:24)(cid:26)(cid:13)(cid:21)(cid:23)(cid:13)(cid:23)(cid:20)(cid:18) -50,84,038 -1,03,77,074 -68,84,177 (cid:14)(cid:23)(cid:17)(cid:13)(cid:26)(cid:24)(cid:13)(cid:20)(cid:17)(cid:22) (cid:14)(cid:18)(cid:13)(cid:26)(cid:25)(cid:13)(cid:25)(cid:24)(cid:13)(cid:24)(cid:26)(cid:19) 1,64,41,017 -0.20 (cid:14)(cid:17)(cid:15)(cid:19)(cid:26) (cid:14)(cid:17)(cid:15)(cid:18)(cid:26) -0.38 -0.25 -0.23 -0.74 0.61 (cid:19)(cid:21)(cid:13)(cid:26)(cid:22)(cid:13)(cid:23)(cid:24)(cid:13)(cid:24)(cid:20)(cid:22) 24,16,21,104 23,65,37,066 (cid:19)(cid:19)(cid:13)(cid:23)(cid:18)(cid:13)(cid:22)(cid:26)(cid:13)(cid:26)(cid:26)(cid:19) (cid:19)(cid:18)(cid:13)(cid:26)(cid:19)(cid:13)(cid:24)(cid:22)(cid:13)(cid:25)(cid:18)(cid:22) 21,31,78,510 (cid:18)(cid:26)(cid:13)(cid:20)(cid:19)(cid:13)(cid:26)(cid:17)(cid:13)(cid:24)(cid:18)(cid:25) (cid:19)(cid:17)(cid:13)(cid:26)(cid:24)(cid:13)(cid:20)(cid:18)(cid:13)(cid:24)(cid:20)(cid:22) 31.03.2019 At the end of the year - - 20,97,31,735 2 Matthews (cid:18)(cid:24)(cid:13)(cid:24)(cid:26)(cid:13)(cid:21)(cid:26)(cid:13)(cid:22)(cid:26)(cid:19) 6.58 (cid:18)(cid:24)(cid:13)(cid:24)(cid:26)(cid:13)(cid:21)(cid:26)(cid:13)(cid:22)(cid:26)(cid:19) Pacific Tiger Fund 06.04.2018 Purchase of Shares (cid:19)(cid:20)(cid:13)(cid:23)(cid:23)(cid:13)(cid:25)(cid:26)(cid:22) (cid:17)(cid:15)(cid:17)(cid:26) 18,03,16,487 31.03.2019 At the end of the year - - 18,03,16,487 3 ICICI Prudential Balanced Fund 8,14,15,323 3.01 06.04.2018 Sale of Shares 06.04.2018 Purchase of Shares 13.04.2018 Sale of Shares 13.04.2018 Purchase of Shares 20.04.2018 Purchase of Shares 27.04.2018 Purchase of Shares 04.05.2018 Purchase of Shares 11.05.2018 Purchase of Shares 18.05.2018 Purchase of Shares 25.05.2018 Sale of Shares 25.05.2018 Purchase of Shares 01.06.2018 Sale of Shares 01.06.2018 Purchase of Shares 08.06.2018 Purchase of Shares 15.06.2018 Sale of Shares 22.06.2018 Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 20.07.2018 Purchase of Shares 27.07.2018 Sale of Shares 03.08.2018 Purchase of Shares 10.08.2018 Sale of Shares 10.08.2018 Purchase of Shares 17.08.2018 Sale of Shares (cid:17)(cid:24)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:18)(cid:21)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares -4,82,865 1,603 -3,33,000 32,84,203 70,41,058 (cid:25)(cid:17)(cid:13)(cid:18)(cid:17)(cid:13)(cid:25)(cid:23)(cid:26) (cid:19)(cid:21)(cid:13)(cid:26)(cid:20)(cid:13)(cid:18)(cid:22)(cid:19) (cid:18)(cid:13)(cid:19)(cid:17)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:26)(cid:17) 42,50,000 (cid:14)(cid:26)(cid:22)(cid:19) 30,36,604 -3,33,000 (cid:19)(cid:22)(cid:13)(cid:21)(cid:25)(cid:13)(cid:21)(cid:19)(cid:26) (cid:21)(cid:23)(cid:13)(cid:26)(cid:19)(cid:13)(cid:22)(cid:19)(cid:23) -1,35,000 -13 (cid:14)(cid:26)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17) 1,605 (cid:18)(cid:13)(cid:23)(cid:17)(cid:26) (cid:14)(cid:26)(cid:21)(cid:24) 3,222 -12,201 (cid:20)(cid:13)(cid:18)(cid:17)(cid:13)(cid:26)(cid:23)(cid:17) (cid:14)(cid:18)(cid:26)(cid:13)(cid:22)(cid:25)(cid:21) -1,08,000 -1,633 -24 2,373 8,14,15,323 (cid:25)(cid:13)(cid:17)(cid:26)(cid:13)(cid:20)(cid:19)(cid:13)(cid:21)(cid:22)(cid:25) (cid:25)(cid:13)(cid:17)(cid:26)(cid:13)(cid:20)(cid:21)(cid:13)(cid:17)(cid:23)(cid:18) 8,06,01,061 8,38,85,264 (cid:26)(cid:13)(cid:17)(cid:26)(cid:13)(cid:19)(cid:23)(cid:13)(cid:20)(cid:19)(cid:19) (cid:26)(cid:13)(cid:25)(cid:26)(cid:13)(cid:20)(cid:24)(cid:13)(cid:18)(cid:26)(cid:18) 10,14,30,343 11,35,24,233 11,77,74,233 11,77,73,281 (cid:18)(cid:19)(cid:13)(cid:17)(cid:25)(cid:13)(cid:17)(cid:26)(cid:13)(cid:25)(cid:25)(cid:22) -0.02 0.00 -0.01 0.12 0.26 0.30 (cid:17)(cid:15)(cid:17)(cid:26) 0.45 0.16 0.00 0.11 -0.01 12,04,76,885 (cid:17)(cid:15)(cid:17)(cid:26) 0.17 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 12,30,25,314 12,77,17,840 12,75,82,840 12,75,82,827 (cid:18)(cid:19)(cid:13)(cid:24)(cid:21)(cid:13)(cid:26)(cid:19)(cid:13)(cid:25)(cid:19)(cid:24) (cid:18)(cid:19)(cid:13)(cid:24)(cid:21)(cid:13)(cid:26)(cid:21)(cid:13)(cid:21)(cid:20)(cid:19) (cid:18)(cid:19)(cid:13)(cid:24)(cid:21)(cid:13)(cid:26)(cid:23)(cid:13)(cid:17)(cid:21)(cid:18) (cid:18)(cid:19)(cid:13)(cid:24)(cid:21)(cid:13)(cid:26)(cid:22)(cid:13)(cid:17)(cid:26)(cid:21) (cid:18)(cid:19)(cid:13)(cid:24)(cid:21)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:18)(cid:23) 12,74,86,115 (cid:18)(cid:19)(cid:13)(cid:24)(cid:24)(cid:13)(cid:26)(cid:24)(cid:13)(cid:17)(cid:24)(cid:22) (cid:18)(cid:19)(cid:13)(cid:24)(cid:24)(cid:13)(cid:24)(cid:24)(cid:13)(cid:21)(cid:26)(cid:18) (cid:18)(cid:19)(cid:13)(cid:24)(cid:23)(cid:13)(cid:23)(cid:26)(cid:13)(cid:21)(cid:26)(cid:18) 12,76,67,858 12,76,67,834 12,76,70,207 (cid:26)(cid:15)(cid:19)(cid:20) (cid:25)(cid:15)(cid:26)(cid:20) 8.75 8.36 8.11 7.88 7.15 7.75 7.75 6.58 6.67 6.67 3.01 (cid:19)(cid:15)(cid:26)(cid:26) (cid:19)(cid:15)(cid:26)(cid:26) (cid:19)(cid:15)(cid:26)(cid:25) 3.10 3.36 3.66 3.75 4.20 4.35 4.35 4.47 4.45 4.55 4.72 4.72 4.72 4.71 4.71 4.71 4.71 4.71 4.71 4.72 4.72 4.72 4.72 4.72 4.72 Board’s Report I (cid:21)(cid:26) I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company No. of shares % of total No. of shares % of total shares of the company shares of the company 12.10.2018 Purchase of Shares (cid:18)(cid:26)(cid:15)(cid:18)(cid:17)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:18)(cid:26)(cid:15)(cid:18)(cid:17)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 26.10.2018 Sale of Shares 02.11.2018 Sale of Shares 02.11.2018 Purchase of Shares (cid:17)(cid:26)(cid:15)(cid:18)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 16.11.2018 Sale of Shares 23.11.2018 Sale of Shares 30.11.2018 Sale of Shares 07.12.2018 Sale of Shares 07.12.2018 Purchase of Shares 14.12.2018 Sale of Shares 14.12.2018 Purchase of Shares 21.12.2018 Purchase of Shares 28.12.2018 Sale of Shares 28.12.2018 Purchase of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:18)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares 10,78,04,751 (cid:20)(cid:15)(cid:26)(cid:26) 31.03.2019 At the end of the year 1,663 -12,51,000 (cid:21)(cid:13)(cid:25)(cid:24)(cid:13)(cid:26)(cid:18)(cid:26) -1,662 (cid:14)(cid:18)(cid:17)(cid:13)(cid:26)(cid:26)(cid:13)(cid:21)(cid:26)(cid:23) (cid:21)(cid:13)(cid:18)(cid:21)(cid:13)(cid:26)(cid:23)(cid:26) -7,68,160 (cid:14)(cid:24)(cid:13)(cid:20)(cid:26)(cid:24) (cid:14)(cid:24)(cid:13)(cid:23)(cid:17)(cid:13)(cid:26)(cid:25)(cid:20) -56,61,000 (cid:14)(cid:19)(cid:26)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:19)(cid:18) 1,661 (cid:14)(cid:20)(cid:13)(cid:26)(cid:19)(cid:13)(cid:18)(cid:18)(cid:19) (cid:18)(cid:20)(cid:13)(cid:19)(cid:26)(cid:23) 3,322 -4,05,018 1,661 -45,000 1,660 (cid:14)(cid:18)(cid:13)(cid:25)(cid:26)(cid:13)(cid:17)(cid:17)(cid:17) -1,13,211 1,661 3,322 8,305 (cid:21)(cid:13)(cid:26)(cid:25)(cid:20) (cid:21)(cid:13)(cid:26)(cid:26)(cid:19) -8,64,000 6,652 -2,51,268 1,662 -818 6,424 - 0.00 -0.05 0.02 0.00 -0.04 0.02 -0.03 0.00 -0.03 -0.21 -0.11 0.00 -0.01 0.00 0.00 -0.01 0.00 0.00 0.00 12,76,71,870 12,64,20,870 (cid:18)(cid:19)(cid:13)(cid:23)(cid:26)(cid:13)(cid:17)(cid:25)(cid:13)(cid:24)(cid:25)(cid:26) (cid:18)(cid:19)(cid:13)(cid:23)(cid:26)(cid:13)(cid:18)(cid:17)(cid:13)(cid:21)(cid:22)(cid:18) (cid:18)(cid:19)(cid:13)(cid:22)(cid:25)(cid:13)(cid:18)(cid:17)(cid:13)(cid:26)(cid:22)(cid:22) (cid:18)(cid:19)(cid:13)(cid:23)(cid:19)(cid:13)(cid:19)(cid:22)(cid:13)(cid:26)(cid:19)(cid:21) 12,54,57,764 12,54,50,367 (cid:18)(cid:19)(cid:13)(cid:21)(cid:23)(cid:13)(cid:25)(cid:26)(cid:13)(cid:20)(cid:25)(cid:21) (cid:18)(cid:18)(cid:13)(cid:26)(cid:17)(cid:13)(cid:19)(cid:25)(cid:13)(cid:20)(cid:25)(cid:21) 11,60,30,063 11,60,31,724 (cid:18)(cid:18)(cid:13)(cid:22)(cid:23)(cid:13)(cid:20)(cid:26)(cid:13)(cid:23)(cid:18)(cid:19) (cid:18)(cid:18)(cid:13)(cid:22)(cid:23)(cid:13)(cid:22)(cid:19)(cid:13)(cid:26)(cid:17)(cid:25) 11,56,56,230 11,52,51,212 11,52,52,873 11,52,07,873 (cid:18)(cid:18)(cid:13)(cid:22)(cid:19)(cid:13)(cid:17)(cid:26)(cid:13)(cid:22)(cid:20)(cid:20) -0.01 11,50,20,533 0.00 0.00 0.00 0.00 0.00 0.00 -0.03 0.00 -0.01 0.00 0.00 0.00 (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:17)(cid:24)(cid:13)(cid:20)(cid:19)(cid:19) (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:17)(cid:25)(cid:13)(cid:26)(cid:25)(cid:20) (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:18)(cid:19)(cid:13)(cid:20)(cid:17)(cid:22) (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:19)(cid:17)(cid:13)(cid:23)(cid:18)(cid:17) (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:19)(cid:22)(cid:13)(cid:22)(cid:26)(cid:20) (cid:18)(cid:18)(cid:13)(cid:21)(cid:26)(cid:13)(cid:20)(cid:17)(cid:13)(cid:22)(cid:25)(cid:22) 11,40,66,585 11,40,73,237 (cid:18)(cid:18)(cid:13)(cid:20)(cid:25)(cid:13)(cid:19)(cid:18)(cid:13)(cid:26)(cid:23)(cid:26) 11,38,23,631 11,38,22,813 (cid:18)(cid:18)(cid:13)(cid:20)(cid:25)(cid:13)(cid:19)(cid:26)(cid:13)(cid:19)(cid:20)(cid:24) - 11,38,29,237 10,78,04,751 (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:14)(cid:18)(cid:13)(cid:24)(cid:24)(cid:13)(cid:25)(cid:24)(cid:13)(cid:19)(cid:22)(cid:26) -0.66 (cid:26)(cid:13)(cid:17)(cid:17)(cid:13)(cid:18)(cid:24)(cid:13)(cid:21)(cid:26)(cid:19) 31.03.2019 At the end of the year - - 9,00,17,492 4.72 4.67 (cid:21)(cid:15)(cid:23)(cid:26) (cid:21)(cid:15)(cid:23)(cid:26) 4.65 4.67 4.64 4.64 4.61 4.40 (cid:21)(cid:15)(cid:19)(cid:26) (cid:21)(cid:15)(cid:19)(cid:26) 4.28 4.28 4.28 4.26 4.26 4.26 4.26 4.25 4.25 4.25 4.25 4.25 4.25 4.25 4.22 4.22 4.21 4.21 4.21 4.21 4.21 (cid:20)(cid:15)(cid:26)(cid:26) 3.33 3.33 4 First State Investments Icvc- Stewart Investors (cid:40)(cid:77)(cid:80)(cid:67)(cid:66)(cid:77)(cid:1) Emerging Markets Leaders Fund 50 I Board’s Report 100th Annual Report 2018-19 Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company (cid:23)(cid:13)(cid:22)(cid:24)(cid:13)(cid:17)(cid:21)(cid:13)(cid:26)(cid:22)(cid:20) 2.43 5 (cid:53)(cid:73)(cid:70)(cid:1)(cid:47)(cid:70)(cid:88)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1) Assurance Company Limited No. of shares % of total No. of shares % of total shares of the company shares of the company -6,627 -12,00,000 -7,10,320 -5,00,000 (cid:14)(cid:19)(cid:13)(cid:25)(cid:26)(cid:13)(cid:23)(cid:25)(cid:17) (cid:14)(cid:26)(cid:13)(cid:17)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17) -4,50,000 (cid:14)(cid:18)(cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:21)(cid:25)(cid:24) -75,000 -14,00,000 -40,000 (cid:14)(cid:18)(cid:17)(cid:13)(cid:18)(cid:22)(cid:13)(cid:22)(cid:18)(cid:26) -3,44,481 -7,35,227 -12,64,773 -14,00,000 (cid:23)(cid:13)(cid:22)(cid:24)(cid:13)(cid:17)(cid:21)(cid:13)(cid:26)(cid:22)(cid:20) (cid:23)(cid:13)(cid:22)(cid:23)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:19)(cid:23) (cid:23)(cid:13)(cid:21)(cid:21)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:19)(cid:23) 6,37,88,006 6,32,88,006 (cid:23)(cid:13)(cid:19)(cid:26)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:19)(cid:23) (cid:23)(cid:13)(cid:19)(cid:17)(cid:13)(cid:26)(cid:25)(cid:13)(cid:20)(cid:19)(cid:23) 6,16,48,326 (cid:23)(cid:13)(cid:17)(cid:21)(cid:13)(cid:23)(cid:25)(cid:13)(cid:25)(cid:20)(cid:26) (cid:23)(cid:13)(cid:17)(cid:20)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) (cid:22)(cid:13)(cid:25)(cid:26)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) (cid:22)(cid:13)(cid:25)(cid:26)(cid:13)(cid:22)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) (cid:22)(cid:13)(cid:24)(cid:26)(cid:13)(cid:20)(cid:25)(cid:13)(cid:20)(cid:19)(cid:17) (cid:22)(cid:13)(cid:24)(cid:22)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) 5,68,58,612 (cid:22)(cid:13)(cid:22)(cid:22)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) (cid:22)(cid:13)(cid:21)(cid:18)(cid:13)(cid:26)(cid:20)(cid:13)(cid:25)(cid:20)(cid:26) 0.00 -0.04 -0.03 -0.02 -0.01 -0.03 -0.02 -0.04 0.00 -0.05 0.00 -0.04 -0.01 -0.03 -0.05 -0.05 2.43 2.43 2.38 2.36 2.34 2.33 2.30 2.28 2.24 2.23 2.18 2.18 2.14 2.13 2.10 2.06 2.00 04.05.2018 Sale of Shares 22.06.2018 Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 06.07.2018 Sale of Shares 13.07.2018 Sale of Shares (cid:17)(cid:24)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:18)(cid:21)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:18)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 02.11.2018 Sale of Shares 23.11.2018 Sale of Shares 30.11.2018 Sale of Shares 07.12.2018 Sale of Shares 14.12.2018 Sale of Shares 21.12.2018 Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares 31.03.2019 At the end of the year - - 5,41,93,839 2.00 (cid:23)(cid:13)(cid:22)(cid:22)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) 2.42 6 (cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:77)(cid:1) Insurance Corporation of India 31.08.2018 Sale of Shares (cid:17)(cid:24)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:18)(cid:21)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:18)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 02.11.2018 Sale of Shares 23.11.2018 Sale of Shares 30.11.2018 Sale of Shares 07.12.2018 Sale of Shares (cid:18)(cid:18)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:25)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares -3,68,812 (cid:14)(cid:18)(cid:18)(cid:13)(cid:22)(cid:26)(cid:13)(cid:26)(cid:26)(cid:20) (cid:14)(cid:24)(cid:13)(cid:18)(cid:23)(cid:13)(cid:24)(cid:26)(cid:23) (cid:14)(cid:18)(cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:25)(cid:22)(cid:19) -12,63,272 -25,00,000 -12,04,377 (cid:14)(cid:19)(cid:18)(cid:13)(cid:17)(cid:23)(cid:13)(cid:25)(cid:26)(cid:25) -25,00,000 -6,536 -3,50,133 -1,43,331 -1,00,000 (cid:23)(cid:13)(cid:22)(cid:22)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) (cid:23)(cid:13)(cid:22)(cid:18)(cid:13)(cid:26)(cid:21)(cid:13)(cid:18)(cid:21)(cid:25) 6,40,34,155 (cid:23)(cid:13)(cid:20)(cid:20)(cid:13)(cid:18)(cid:24)(cid:13)(cid:20)(cid:22)(cid:26) 6,21,37,507 6,08,74,235 5,83,74,235 (cid:22)(cid:13)(cid:24)(cid:18)(cid:13)(cid:23)(cid:26)(cid:13)(cid:25)(cid:22)(cid:25) (cid:22)(cid:13)(cid:22)(cid:17)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) (cid:22)(cid:13)(cid:19)(cid:22)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) 5,25,56,424 (cid:22)(cid:13)(cid:19)(cid:19)(cid:13)(cid:17)(cid:23)(cid:13)(cid:19)(cid:26)(cid:18) (cid:22)(cid:13)(cid:19)(cid:17)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) (cid:22)(cid:13)(cid:18)(cid:26)(cid:13)(cid:23)(cid:19)(cid:13)(cid:26)(cid:23)(cid:17) -0.01 -0.04 -0.03 -0.04 -0.05 (cid:14)(cid:17)(cid:15)(cid:17)(cid:26) -0.04 -0.08 (cid:14)(cid:17)(cid:15)(cid:17)(cid:26) 0.00 -0.01 -0.01 0.00 7 8 Stewart Investors (cid:40)(cid:77)(cid:80)(cid:67)(cid:66)(cid:77)(cid:1) Emerging Markets Leaders Fund SBI Large & Midcap Fund 3,72,00,828 1.38 31.03.2019 At the end of the year - - 5,19,62,960 18.05.2018 Sale of Shares 25.05.2018 Sale of Shares -18,85,735 (cid:14)(cid:19)(cid:26)(cid:13)(cid:25)(cid:22)(cid:13)(cid:21)(cid:23)(cid:21) (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:13)(cid:24)(cid:24)(cid:13)(cid:25)(cid:24)(cid:13)(cid:19)(cid:22)(cid:26) -0.07 -0.11 0.66 3,72,00,828 (cid:20)(cid:13)(cid:22)(cid:20)(cid:13)(cid:18)(cid:22)(cid:13)(cid:17)(cid:26)(cid:20) (cid:20)(cid:13)(cid:19)(cid:20)(cid:13)(cid:19)(cid:26)(cid:13)(cid:23)(cid:19)(cid:26) 5,01,16,888 17,21,827 0.06 31.03.2019 At the end of the year - - 5,01,16,888 06.04.2018 Sale of Shares 18.05.2018 Purchase of Shares -5,71,270 1,651 -0.02 0.00 17,21,827 11,50,557 11,52,208 2.42 2.41 2.37 2.34 2.30 2.25 2.16 2.11 2.04 (cid:18)(cid:15)(cid:26)(cid:21) (cid:18)(cid:15)(cid:26)(cid:21) (cid:18)(cid:15)(cid:26)(cid:20) (cid:18)(cid:15)(cid:26)(cid:19) (cid:18)(cid:15)(cid:26)(cid:19) 1.92 1.38 1.31 1.20 1.85 1.85 0.06 0.04 0.04 Board’s Report I 51 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company No. of shares % of total No. of shares % of total shares of the company shares of the company 22.06.2018 Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 13.07.2018 Purchase of Shares 03.08.2018 Purchase of Shares 10.08.2018 Sale of Shares 31.08.2018 Sale of Shares (cid:18)(cid:21)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 05.10.2018 Purchase of Shares 12.10.2018 Purchase of Shares 26.10.2018 Purchase of Shares 02.11.2018 Sale of Shares 02.11.2018 Purchase of Shares 16.11.2018 Sale of Shares 16.11.2018 Purchase of Shares 30.11.2018 Sale of Shares -10 4 1 5 -2 -1,647 1 -4 26,251 33 1,015 2,00,000 -4 3,50,000 -1,015 3,65,000 -11,151 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.00 0.01 0.00 0.01 0.00 07.12.2018 Sale of Shares -2,00,000 -0.01 07.12.2018 Purchase of Shares (cid:18)(cid:13)(cid:17)(cid:24)(cid:13)(cid:17)(cid:21)(cid:13)(cid:26)(cid:20)(cid:17) 14.12.2018 Sale of Shares 14.12.2018 Purchase of Shares 28.12.2018 Purchase of Shares 31.12.2018 Purchase of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares -7,600 (cid:18)(cid:24)(cid:13)(cid:26)(cid:22)(cid:13)(cid:17)(cid:24)(cid:17) (cid:19)(cid:13)(cid:19)(cid:22)(cid:13)(cid:26)(cid:18)(cid:24) 1,50,000 6,25,000 70,00,000 22,71,084 52,00,000 11 11,00,018 5,00,005 (cid:20)(cid:26)(cid:13)(cid:26)(cid:23)(cid:13)(cid:17)(cid:17)(cid:24) (cid:14)(cid:18)(cid:13)(cid:17)(cid:26)(cid:19) (cid:21)(cid:23)(cid:13)(cid:17)(cid:21)(cid:13)(cid:19)(cid:26)(cid:26) -15,00,006 (cid:22)(cid:26)(cid:13)(cid:25)(cid:19)(cid:13)(cid:18)(cid:26)(cid:20) -4,868 25,01,407 0.40 0.00 0.07 0.01 0.01 0.02 0.26 0.08 (cid:17)(cid:15)(cid:18)(cid:26) 0.00 0.04 0.02 0.15 0.00 0.17 -0.06 0.22 0.00 (cid:17)(cid:15)(cid:17)(cid:26) (cid:18)(cid:18)(cid:13)(cid:22)(cid:19)(cid:13)(cid:18)(cid:26)(cid:25) 11,52,202 11,52,203 11,52,208 11,52,206 (cid:18)(cid:18)(cid:13)(cid:22)(cid:17)(cid:13)(cid:22)(cid:22)(cid:26) 11,50,560 11,50,556 11,76,807 11,76,840 11,77,855 13,77,855 13,77,851 17,27,851 17,26,836 (cid:19)(cid:17)(cid:13)(cid:26)(cid:18)(cid:13)(cid:25)(cid:20)(cid:23) 20,80,685 18,80,685 1,25,85,615 1,25,78,015 1,43,73,085 (cid:18)(cid:13)(cid:21)(cid:22)(cid:13)(cid:26)(cid:26)(cid:13)(cid:17)(cid:17)(cid:19) (cid:18)(cid:13)(cid:21)(cid:24)(cid:13)(cid:21)(cid:26)(cid:13)(cid:17)(cid:17)(cid:19) 1,53,74,002 2,23,74,002 2,46,45,086 (cid:19)(cid:13)(cid:26)(cid:25)(cid:13)(cid:21)(cid:22)(cid:13)(cid:17)(cid:25)(cid:23) (cid:19)(cid:13)(cid:26)(cid:25)(cid:13)(cid:21)(cid:22)(cid:13)(cid:17)(cid:26)(cid:24) (cid:20)(cid:13)(cid:17)(cid:26)(cid:13)(cid:21)(cid:22)(cid:13)(cid:18)(cid:18)(cid:22) 3,14,45,120 3,54,41,127 3,54,40,035 4,00,44,334 3,85,44,328 4,45,26,521 4,45,21,653 4,70,23,060 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.06 0.06 0.08 0.08 0.07 0.47 0.47 0.53 0.54 0.55 0.57 0.83 (cid:17)(cid:15)(cid:26)(cid:18) 1.10 1.10 1.14 1.16 1.31 1.31 1.48 1.43 1.65 1.65 1.74 31.03.2019 At the end of the year - - 4,70,23,060 1.74 52 I Board’s Report 100th Annual Report 2018-19 Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company 14,71,078 0.05 (cid:26) Reliance Emergent India Fund No. of shares % of total No. of shares % of total shares of the company shares of the company 14,71,078 0.05 06.04.2018 Sale of Shares 06.04.2018 Purchase of Shares 13.04.2018 Sale of Shares 20.04.2018 Sale of Shares 27.04.2018 Purchase of Shares 04.05.2018 Purchase of Shares 11.05.2018 Sale of Shares 25.05.2018 Sale of Shares 01.06.2018 Sale of Shares 01.06.2018 Purchase of Shares 08.06.2018 Sale of Shares 08.06.2018 Purchase of Shares 15.06.2018 Purchase of Shares 22.06.2018 Purchase of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 06.07.2018 Sale of Shares 13.07.2018 Sale of Shares 13.07.2018 Purchase of Shares 20.07.2018 Sale of Shares 20.07.2018 Purchase of Shares 03.08.2018 Sale of Shares 10.08.2018 Sale of Shares 24.08.2018 Sale of Shares 24.08.2018 Purchase of Shares 31.08.2018 Sale of Shares 31.08.2018 Purchase of Shares (cid:17)(cid:24)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:17)(cid:24)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares (cid:18)(cid:21)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:18)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares (cid:19)(cid:18)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares (cid:19)(cid:25)(cid:15)(cid:17)(cid:26)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares 05.10.2018 Sale of Shares 12.10.2018 Sale of Shares 12.10.2018 Purchase of Shares (cid:18)(cid:26)(cid:15)(cid:18)(cid:17)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 26.10.2018 Sale of Shares 26.10.2018 Purchase of Shares 02.11.2018 Purchase of Shares (cid:17)(cid:26)(cid:15)(cid:18)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Purchase of Shares 16.11.2018 Purchase of Shares 23.11.2018 Purchase of Shares (cid:14)(cid:25)(cid:13)(cid:17)(cid:23)(cid:13)(cid:24)(cid:26)(cid:23) 1,08,000 (cid:14)(cid:21)(cid:13)(cid:22)(cid:26)(cid:13)(cid:17)(cid:17)(cid:17) (cid:14)(cid:18)(cid:13)(cid:26)(cid:25)(cid:13)(cid:17)(cid:17)(cid:17) 81,000 10,44,000 -610 -6,57,000 -81,000 7,84,583 -72 2,34,000 18,72,000 5,31,000 -1,62,740 -375 (cid:14)(cid:23)(cid:20)(cid:26) 1,62,000 -2,88,608 (cid:23)(cid:20)(cid:26) -608 -457 (cid:14)(cid:23)(cid:17)(cid:26) 2,34,000 -7,47,000 (cid:19)(cid:13)(cid:26)(cid:26)(cid:13)(cid:26)(cid:26)(cid:26) (cid:14)(cid:26)(cid:13)(cid:23)(cid:20)(cid:13)(cid:17)(cid:17)(cid:17) 386 -2,88,000 -1,26,025 342 -5,75,168 -6,12,607 (cid:14)(cid:21)(cid:13)(cid:24)(cid:26)(cid:13)(cid:21)(cid:19)(cid:25) 683 (cid:23)(cid:17)(cid:13)(cid:17)(cid:26)(cid:13)(cid:25)(cid:25)(cid:26) -607 54,000 80,16,000 7,34,000 28,50,000 63,175 -0.03 0.00 -0.02 -0.01 0.00 0.04 0.00 -0.02 0.00 0.03 0.00 0.01 0.07 0.02 -0.01 0.00 0.00 0.01 -0.01 0.00 0.00 0.00 0.00 0.01 -0.03 0.01 -0.04 0.00 -0.01 0.00 0.00 -0.02 -0.02 -0.02 0.00 0.22 0.00 0.00 0.30 0.03 0.11 0.00 6,64,282 7,72,282 3,13,282 1,15,282 (cid:18)(cid:13)(cid:26)(cid:23)(cid:13)(cid:19)(cid:25)(cid:19) 12,40,282 (cid:18)(cid:19)(cid:13)(cid:20)(cid:26)(cid:13)(cid:23)(cid:24)(cid:19) 5,82,672 5,01,672 12,86,255 12,86,183 15,20,183 (cid:20)(cid:20)(cid:13)(cid:26)(cid:19)(cid:13)(cid:18)(cid:25)(cid:20) (cid:20)(cid:26)(cid:13)(cid:19)(cid:20)(cid:13)(cid:18)(cid:25)(cid:20) 37,60,443 37,60,068 (cid:20)(cid:24)(cid:13)(cid:22)(cid:26)(cid:13)(cid:21)(cid:19)(cid:26) (cid:20)(cid:26)(cid:13)(cid:19)(cid:18)(cid:13)(cid:21)(cid:19)(cid:26) 36,32,821 36,33,460 36,32,852 (cid:20)(cid:23)(cid:13)(cid:20)(cid:19)(cid:13)(cid:20)(cid:26)(cid:22) 36,31,786 38,65,786 31,18,786 34,18,785 24,55,785 24,56,171 21,68,171 20,42,146 20,42,488 14,67,320 8,54,713 3,75,285 (cid:20)(cid:13)(cid:24)(cid:22)(cid:13)(cid:26)(cid:23)(cid:25) 63,85,857 63,85,250 (cid:23)(cid:21)(cid:13)(cid:20)(cid:26)(cid:13)(cid:19)(cid:22)(cid:17) 1,44,55,250 (cid:18)(cid:13)(cid:22)(cid:18)(cid:13)(cid:25)(cid:26)(cid:13)(cid:19)(cid:22)(cid:17) (cid:18)(cid:13)(cid:25)(cid:17)(cid:13)(cid:20)(cid:26)(cid:13)(cid:19)(cid:22)(cid:17) 1,81,02,425 0.02 0.03 0.01 0.00 0.01 0.05 0.05 0.02 0.02 0.05 0.05 0.06 0.13 0.15 0.14 0.14 0.14 0.14 0.13 0.13 0.13 0.13 0.13 0.14 0.12 0.13 (cid:17)(cid:15)(cid:17)(cid:26) (cid:17)(cid:15)(cid:17)(cid:26) 0.08 0.08 0.08 0.05 0.03 0.01 0.01 0.24 0.24 0.24 0.53 0.56 0.67 0.67 Board’s Report I 53 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company No. of shares % of total No. of shares % of total shares of the company shares of the company 30.11.2018 Sale of Shares 30.11.2018 Purchase of Shares 07.12.2018 Sale of Shares 07.12.2018 Purchase of Shares 14.12.2018 Sale of Shares 14.12.2018 Purchase of Shares 21.12.2018 Purchase of Shares 28.12.2018 Sale of Shares 28.12.2018 Purchase of Shares 31.12.2018 Purchase of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:21)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:18)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:18)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:25)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:18)(cid:25)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:22)(cid:15)(cid:17)(cid:18)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:17)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:18)(cid:22)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:19)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Sale of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares -5,481 8,86,000 (cid:14)(cid:19)(cid:13)(cid:26)(cid:26)(cid:13)(cid:26)(cid:26)(cid:26) 52,88,000 -27,000 634 3,78,000 -8,01,374 10,82,000 20,00,000 -604 2,56,000 -45,254 45,254 -10,26,000 10,23,442 15,05,000 -2,52,000 28,54,633 -5,22,000 364 14,00,000 5,00,052 (cid:14)(cid:18)(cid:18)(cid:13)(cid:26)(cid:24)(cid:13)(cid:17)(cid:17)(cid:17) 15,00,442 (cid:26)(cid:13)(cid:18)(cid:21)(cid:13)(cid:21)(cid:26)(cid:23) (cid:18)(cid:22)(cid:13)(cid:17)(cid:25)(cid:26) -1,80,000 4,430 -1,470 (cid:23)(cid:26)(cid:13)(cid:22)(cid:21)(cid:25) 0.00 0.03 -0.01 0.20 0.00 0.00 0.01 -0.03 0.04 0.07 0.00 0.01 0.00 0.00 -0.04 0.04 0.06 -0.01 0.11 -0.02 0.00 0.05 0.02 -0.04 0.06 0.03 0.00 -0.01 0.00 0.00 0.00 (cid:18)(cid:13)(cid:25)(cid:17)(cid:13)(cid:26)(cid:23)(cid:13)(cid:26)(cid:21)(cid:21) (cid:18)(cid:13)(cid:25)(cid:26)(cid:13)(cid:25)(cid:19)(cid:13)(cid:26)(cid:21)(cid:21) (cid:18)(cid:13)(cid:25)(cid:23)(cid:13)(cid:25)(cid:19)(cid:13)(cid:26)(cid:21)(cid:22) (cid:19)(cid:13)(cid:20)(cid:26)(cid:13)(cid:24)(cid:17)(cid:13)(cid:26)(cid:21)(cid:22) (cid:19)(cid:13)(cid:20)(cid:26)(cid:13)(cid:21)(cid:20)(cid:13)(cid:26)(cid:21)(cid:22) (cid:19)(cid:13)(cid:20)(cid:26)(cid:13)(cid:21)(cid:21)(cid:13)(cid:22)(cid:24)(cid:26) (cid:19)(cid:13)(cid:21)(cid:20)(cid:13)(cid:19)(cid:19)(cid:13)(cid:22)(cid:24)(cid:26) 2,35,21,205 2,46,03,205 2,66,03,205 2,66,02,601 2,68,58,601 2,68,13,347 2,68,58,601 2,58,32,601 2,68,56,043 2,83,61,043 (cid:19)(cid:13)(cid:25)(cid:18)(cid:13)(cid:17)(cid:26)(cid:13)(cid:17)(cid:21)(cid:20) (cid:20)(cid:13)(cid:17)(cid:26)(cid:13)(cid:23)(cid:20)(cid:13)(cid:23)(cid:24)(cid:23) 3,04,41,676 3,04,42,040 3,18,42,040 (cid:20)(cid:13)(cid:19)(cid:20)(cid:13)(cid:21)(cid:19)(cid:13)(cid:17)(cid:26)(cid:19) (cid:20)(cid:13)(cid:18)(cid:18)(cid:13)(cid:21)(cid:22)(cid:13)(cid:17)(cid:26)(cid:19) 3,26,45,534 3,35,60,030 (cid:20)(cid:13)(cid:20)(cid:22)(cid:13)(cid:24)(cid:22)(cid:13)(cid:18)(cid:18)(cid:26) (cid:20)(cid:13)(cid:20)(cid:20)(cid:13)(cid:26)(cid:22)(cid:13)(cid:18)(cid:18)(cid:26) (cid:20)(cid:13)(cid:20)(cid:20)(cid:13)(cid:26)(cid:26)(cid:13)(cid:22)(cid:21)(cid:26) (cid:20)(cid:13)(cid:20)(cid:20)(cid:13)(cid:26)(cid:25)(cid:13)(cid:17)(cid:24)(cid:26) 3,34,67,627 (cid:19)(cid:13)(cid:24)(cid:18)(cid:13)(cid:23)(cid:23)(cid:13)(cid:24)(cid:26)(cid:17) 1.00 31.03.2019 At the end of the year - (cid:47)(cid:80)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) 31.03.2019 At the end of the year - 0 - - 3,34,67,627 (cid:19)(cid:13)(cid:24)(cid:18)(cid:13)(cid:23)(cid:23)(cid:13)(cid:24)(cid:26)(cid:17) (cid:19)(cid:13)(cid:24)(cid:18)(cid:13)(cid:23)(cid:23)(cid:13)(cid:24)(cid:26)(cid:17) 0.00 - 2,71,66,790 0.67 0.70 (cid:17)(cid:15)(cid:23)(cid:26) (cid:17)(cid:15)(cid:25)(cid:26) (cid:17)(cid:15)(cid:25)(cid:26) (cid:17)(cid:15)(cid:25)(cid:26) (cid:17)(cid:15)(cid:26)(cid:17) 0.87 (cid:17)(cid:15)(cid:26)(cid:18) (cid:17)(cid:15)(cid:26)(cid:25) (cid:17)(cid:15)(cid:26)(cid:25) (cid:17)(cid:15)(cid:26)(cid:26) (cid:17)(cid:15)(cid:26)(cid:26) (cid:17)(cid:15)(cid:26)(cid:26) (cid:17)(cid:15)(cid:26)(cid:23) (cid:17)(cid:15)(cid:26)(cid:26) 1.05 1.04 1.14 1.13 1.13 1.18 1.20 1.15 1.21 1.24 1.24 1.23 1.23 1.23 1.24 1.24 1.00 1.00 1.00 (cid:19)(cid:13)(cid:22)(cid:26)(cid:13)(cid:19)(cid:25)(cid:13)(cid:25)(cid:21)(cid:17) (cid:17)(cid:15)(cid:26)(cid:23) (cid:19)(cid:13)(cid:22)(cid:26)(cid:13)(cid:19)(cid:25)(cid:13)(cid:25)(cid:21)(cid:17) (cid:17)(cid:15)(cid:26)(cid:23) 10 (cid:46)(cid:66)(cid:73)(cid:80)(cid:86)(cid:85)(cid:1)(cid:40)(cid:77)(cid:80)(cid:67)(cid:66)(cid:77)(cid:1) Emerging Markets Leaders Fund, A Sub-Fund of The Mahout Delaware Statutory Trust 11 First State Investments Icvc- Stewart Investors Asia Pacific Fund 54 I Board’s Report 100th Annual Report 2018-19 Sl. No. Name of the Shareholder Shareholding at the beginning of the year (as on 01.04.2018) Date Reason Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares % of total shares of the company (cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:24)(cid:22)(cid:13)(cid:21)(cid:21)(cid:22) 0.66 12 (cid:55)(cid:66)(cid:79)(cid:72)(cid:86)(cid:66)(cid:83)(cid:69)(cid:1) Emerging Markets Stock Index Fund, A series of (cid:55)(cid:66)(cid:79)(cid:72)(cid:86)(cid:66)(cid:83)(cid:69)(cid:1) International Equity Index Fund No. of shares % of total No. of shares % of total shares of the company shares of the company - (cid:47)(cid:80)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) 31.03.2019 At the end of the year 0 - 0.00 (cid:19)(cid:13)(cid:22)(cid:26)(cid:13)(cid:19)(cid:25)(cid:13)(cid:25)(cid:21)(cid:17) - 2,59,28,840 04.05.2018 Sale of Shares 11.05.2018 Sale of Shares 01.06.2018 Sale of Shares 15.06.2018 Sale of Shares 22.06.2018 Sale of Shares -35,600 -33,820 -26,700 -26,700 (cid:14)(cid:23)(cid:26)(cid:13)(cid:24)(cid:25)(cid:19) (cid:19)(cid:26)(cid:15)(cid:17)(cid:23)(cid:15)(cid:19)(cid:17)(cid:18)(cid:25) Sale of Shares -1,12,332 06.07.2018 Sale of Shares 13.07.2018 Sale of Shares 16.11.2018 Purchase of Shares 23.11.2018 Purchase of Shares 07.12.2018 Purchase of Shares 21.12.2018 Purchase of Shares (cid:14)(cid:21)(cid:22)(cid:13)(cid:26)(cid:22)(cid:21) -73,186 24,255 63,063 30,723 87,318 28.12.2018 Sale of Shares -18,10,581 (cid:17)(cid:18)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:17)(cid:25)(cid:15)(cid:17)(cid:19)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares (cid:19)(cid:26)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) Purchase of Shares 88,102 2,81,015 (cid:20)(cid:21)(cid:13)(cid:26)(cid:20)(cid:24) (cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:24)(cid:22)(cid:13)(cid:21)(cid:21)(cid:22) (cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:20)(cid:26)(cid:13)(cid:25)(cid:21)(cid:22) (cid:18)(cid:13)(cid:24)(cid:26)(cid:13)(cid:17)(cid:23)(cid:13)(cid:17)(cid:19)(cid:22) (cid:18)(cid:13)(cid:24)(cid:25)(cid:13)(cid:24)(cid:26)(cid:13)(cid:20)(cid:19)(cid:22) 1,78,52,625 1,77,82,843 1,76,70,511 1,76,24,557 1,75,51,371 1,75,75,626 (cid:18)(cid:13)(cid:24)(cid:23)(cid:13)(cid:20)(cid:25)(cid:13)(cid:23)(cid:25)(cid:26) (cid:18)(cid:13)(cid:24)(cid:23)(cid:13)(cid:23)(cid:26)(cid:13)(cid:21)(cid:18)(cid:19) 1,77,56,730 (cid:18)(cid:13)(cid:22)(cid:26)(cid:13)(cid:21)(cid:23)(cid:13)(cid:18)(cid:21)(cid:26) 1,60,34,251 1,63,15,266 1,63,50,203 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.07 0.00 0.01 0.00 (cid:17)(cid:15)(cid:26)(cid:23) 0.96 0.66 0.66 0.66 0.66 0.66 0.66 0.65 0.65 0.65 0.65 0.65 0.65 0.66 (cid:17)(cid:15)(cid:22)(cid:26) (cid:17)(cid:15)(cid:22)(cid:26) 0.60 0.60 v) Shareholding of Directors and Key Managerial Personnel: 31.03.2019 At the end of the year - - 1,63,50,203 0.60 Sl. No. Name of the Director / Key Managerial Personnel Date Reason Shareholding at the beginning of the year (as on 01.04.2018) No. of shares % of total shares of the company Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares No. of shares % of total shares of the company % of total shares of the company 1 (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79) 2 (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:66)(cid:88)(cid:84)(cid:73)(cid:74)(cid:83)(cid:1)(cid:41)(cid:15)(cid:1)(cid:46)(cid:74)(cid:83)(cid:91)(cid:66) 3 Mr. Deepak M. Satwalekar 4 Ms. Anjali Bansal 0 0 0 0 0.00 0.00 0.00 0.00 - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year 0 - 0 - 0 - 0 - 0.00 - 0.00 - 0.00 - 0.00 - 0 0 0 0 0 0 0 0 0 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 Board’s Report I 55 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Increase/Decrease in Shareholding Cumulative Shareholding during the year No. of shares No. of shares % of total shares of the company % of total shares of the company Sl. No. Name of the Director / Key Managerial Personnel Date Reason Shareholding at the beginning of the year (as on 01.04.2018) No. of shares % of total shares of the company 5 (cid:46)(cid:84)(cid:15)(cid:1)(cid:55)(cid:74)(cid:67)(cid:73)(cid:66)(cid:1)(cid:49)(cid:66)(cid:69)(cid:66)(cid:77)(cid:76)(cid:66)(cid:83) 0 0.00 6 (cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:79)(cid:75)(cid:66)(cid:90)(cid:1)(cid:55)(cid:15)(cid:1)(cid:35)(cid:73)(cid:66)(cid:79)(cid:69)(cid:66)(cid:83)(cid:76)(cid:66)(cid:83)# 16,262 0.00 7 Mr. K. M. Chandrasekhar 8 Mr. Hemant Bhargava (cid:26) Mr. Saurabh Agrawal 10 Mr. Banmali Agrawala 11 Mr. Praveer Sinha, CEO & Managing Director (w.e.f. 01.05.2018) 0 0 0 0 0 0.00 0.00 0.00 0.00 0.00 12 Mr. Ashok S. Sethi, COO & 20,600 0.00 Executive Director 13 Mr. Anil Sardana, CEO & Managing Director (upto 30.04.2018) 14 (cid:46)(cid:83)(cid:15)(cid:1)(cid:51)(cid:66)(cid:78)(cid:70)(cid:84)(cid:73)(cid:1)(cid:47)(cid:15)(cid:1) Subramanyam, Chief Financial Officer 0 0 0.00 0.00 15 Mr. Hanoz M. Mistry, Company Secretary 18,445 0.00 - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the period ended - (cid:47)(cid:80)(cid:1)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 0 0 0.00 - 16,262 0.00 16,262 - 16,262 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00 - 0.00 - 0.00 - 0.00 - 0.00 - 20,600 0.00 20,600 - 20,600 0.00 - 0.00 - 0 0 0 0 0 0 18,445 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 08.06.2018 Purchase of Shares @ 8,560 0.00 27,005* (cid:20)(cid:18)(cid:15)(cid:17)(cid:20)(cid:15)(cid:19)(cid:17)(cid:18)(cid:26) At the end of the year - - 27,005 # All the 16,262 shares are held as second holder. * Out of 27,005 shares, 15,286 shares are held as second holder. @ Acquired on account of transmission. 56 I Board’s Report 100th Annual Report 2018-19 V. (cid:1) INDEBTEDNESS (cid:42)(cid:79)(cid:69)(cid:70)(cid:67)(cid:85)(cid:70)(cid:69)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:74)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:70)(cid:84)(cid:85)(cid:1)(cid:80)(cid:86)(cid:85)(cid:84)(cid:85)(cid:66)(cid:79)(cid:69)(cid:74)(cid:79)(cid:72)(cid:16)(cid:66)(cid:68)(cid:68)(cid:83)(cid:86)(cid:70)(cid:69)(cid:1)(cid:67)(cid:86)(cid:85)(cid:1)(cid:79)(cid:80)(cid:85)(cid:1)(cid:69)(cid:86)(cid:70)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:81)(cid:66)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85) Particulars (cid:1)(cid:39)(cid:74)(cid:72)(cid:86)(cid:83)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:846)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) Unsecured Deposits Total Loans Indebtedness Secured Loans excluding deposits Principal Amount Interest due but not paid Interest accrued but not due Indebtedness at the beginning of the financial year i) ii) iii) Total (i+ii+iii) Change in Indebtedness during the financial year (cid:116)(cid:1) (cid:116)(cid:1) Net Change Indebtedness at the end of the financial year i) ii) iii) Total (i + ii + iii) Principal Amount Interest due but not paid Interest accrued but not due (cid:34)(cid:69)(cid:69)(cid:74)(cid:85)(cid:74)(cid:80)(cid:79) (cid:51)(cid:70)(cid:69)(cid:86)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79) (cid:1)(cid:25)(cid:13)(cid:18)(cid:19)(cid:19)(cid:15)(cid:26)(cid:22)(cid:1) - (cid:1)(cid:21)(cid:18)(cid:15)(cid:26)(cid:23)(cid:1) 8,164.91 8,448.48 - 225.13 8,673.61 (cid:1)(cid:18)(cid:13)(cid:26)(cid:20)(cid:21)(cid:15)(cid:17)(cid:22)(cid:1) (1,644.33) 289.72 (cid:1)(cid:19)(cid:21)(cid:13)(cid:18)(cid:20)(cid:19)(cid:15)(cid:26)(cid:24)(cid:1) (23,316.38) 816.59 (cid:1)(cid:18)(cid:20)(cid:13)(cid:22)(cid:26)(cid:25)(cid:15)(cid:24)(cid:22)(cid:1) - 68.54 13,667.29 3,853.77 - 235.36 4,089.13 VI. A. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL Remuneration to Managing Director, Whole-time Director and/or Manager: - - - - - - - - - - - 16,571.43 - (cid:1)(cid:19)(cid:23)(cid:24)(cid:15)(cid:17)(cid:26)(cid:1) 16,838.52 26,067.02 (cid:1)(cid:9)(cid:19)(cid:21)(cid:13)(cid:26)(cid:23)(cid:17)(cid:15)(cid:24)(cid:18)(cid:10) 1,106.31 17,452.52 - (cid:1)(cid:20)(cid:17)(cid:20)(cid:15)(cid:26)(cid:17)(cid:1) 17,756.42 (cid:9)(cid:846)(cid:10) Total Amount Sl. No. 1. 2. 3. 4. Particulars of Remuneration (cid:40)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:90) (a) Salary as per provisions contained in section 17(1) of the Income-tax Act, (cid:18)(cid:26)(cid:23)(cid:18) (cid:1)(cid:55)(cid:66)(cid:77)(cid:86)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:81)(cid:70)(cid:83)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:1) (cid:86)(cid:16)(cid:84)(cid:1) (cid:18)(cid:24)(cid:9)(cid:19)(cid:10)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:14)(cid:85)(cid:66)(cid:89)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:23)(cid:18) Profits in lieu of salary under section (cid:18)(cid:24)(cid:9)(cid:20)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:14)(cid:85)(cid:66)(cid:89)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:23)(cid:18) (cid:9)(cid:67)(cid:10)(cid:1) (c) Stock Option Sweat Equity Commission (cid:16)(cid:3) (cid:16)(cid:3) (cid:66)(cid:84)(cid:1)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85) others, specify... (performance based) Name of MD/WTD/Manager Mr. Ashok S. Sethi, COO & Executive Director* Mr. Anil Sardana, CEO & Managing Director@ Mr. Praveer Sinha, CEO & Managing Director (w.e.f 01.05.2018) (cid:18)(cid:13)(cid:23)(cid:25)(cid:13)(cid:26)(cid:22)(cid:13)(cid:20)(cid:21)(cid:19)(cid:15)(cid:20)(cid:17) 1,85,73,500.00 (cid:23)(cid:25)(cid:13)(cid:22)(cid:26)(cid:13)(cid:24)(cid:26)(cid:26)(cid:15)(cid:22)(cid:17) 4,23,28,641.80 3,32,613.00 (cid:18)(cid:13)(cid:19)(cid:26)(cid:13)(cid:24)(cid:22)(cid:21)(cid:15)(cid:17)(cid:17) (cid:18)(cid:17)(cid:13)(cid:20)(cid:26)(cid:25)(cid:15)(cid:17)(cid:17) 4,72,765.00 (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) &2,50,00,000.00 22,27,500.00 &2,25,00,000.00 8,71,200.00 (cid:47)(cid:15)(cid:34)(cid:15) 4,75,00,000.00 5. Others, Retirement Benefits Total (A) (cid:36)(cid:70)(cid:74)(cid:77)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:1)(cid:9)(cid:33)(cid:1)(cid:18)(cid:17)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:1)(cid:68)(cid:66)(cid:77)(cid:68)(cid:86)(cid:77)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:18)(cid:26)(cid:25)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:10) (cid:18)(cid:13)(cid:23)(cid:20)(cid:13)(cid:26)(cid:26)(cid:13)(cid:23)(cid:20)(cid:23)(cid:15)(cid:17)(cid:17) 4,44,55,455.30 4,20,74,454.00 2,01,71,133.50 10,67,01,042.80 (cid:846)(cid:1)(cid:20)(cid:22)(cid:15)(cid:21)(cid:20)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) (cid:18)(cid:13)(cid:20)(cid:20)(cid:13)(cid:17)(cid:17)(cid:13)(cid:26)(cid:20)(cid:23)(cid:15)(cid:17)(cid:17) & (cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:70)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:20)(cid:18)(cid:84)(cid:85)(cid:1)(cid:46)(cid:66)(cid:83)(cid:68)(cid:73)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:13)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:81)(cid:66)(cid:74)(cid:69)(cid:1)(cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:39)(cid:58)(cid:19)(cid:17)(cid:15) (cid:11)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:70)(cid:85)(cid:73)(cid:74)(cid:1)(cid:84)(cid:86)(cid:81)(cid:70)(cid:83)(cid:66)(cid:79)(cid:79)(cid:86)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:48)(cid:48)(cid:1)(cid:7)(cid:1)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:15) @(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:66)(cid:83)(cid:69)(cid:66)(cid:79)(cid:66)(cid:1)(cid:83)(cid:70)(cid:84)(cid:74)(cid:72)(cid:79)(cid:70)(cid:69)(cid:1)(cid:66)(cid:84)(cid:1)(cid:36)(cid:38)(cid:48)(cid:1)(cid:7)(cid:1)(cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:74)(cid:79)(cid:72)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:70)(cid:242)(cid:70)(cid:68)(cid:85)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:68)(cid:77)(cid:80)(cid:84)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:67)(cid:86)(cid:84)(cid:74)(cid:79)(cid:70)(cid:84)(cid:84)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:17)(cid:85)(cid:73)(cid:1)(cid:34)(cid:81)(cid:83)(cid:74)(cid:77)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:15) Board’s Report I 57 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited B. Remuneration to other directors: Sl. No. Name of Directors Particulars of Remuneration Fee for attending board /committee meetings * Commission payable for FY19 & Others, please specify I. Independent Directors 1. (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:41)(cid:15)(cid:1)(cid:46)(cid:74)(cid:83)(cid:91)(cid:66) 2. Mr. D. M. Satwalekar 3. Ms. Anjali Bansal 4. (cid:46)(cid:84)(cid:15)(cid:1)(cid:55)(cid:74)(cid:67)(cid:73)(cid:66)(cid:1)(cid:49)(cid:66)(cid:69)(cid:66)(cid:77)(cid:76)(cid:66)(cid:83) 5. (cid:46)(cid:83)(cid:15)(cid:1)(cid:52)(cid:15)(cid:1)(cid:55)(cid:15)(cid:1)(cid:35)(cid:73)(cid:66)(cid:79)(cid:69)(cid:66)(cid:83)(cid:76)(cid:66)(cid:83)(cid:1) 6. Mr. K. M. Chandrasekhar 4,80,000 5,40,000 4,20,000 4,50,000 5,40,000 3,60,000 70,00,000 65,00,000 50,00,000 50,00,000 55,00,000 40,00,000 Total (I) 27,90,000 3,30,00,000 II. Other Non-Executive Directors 1. (cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:1)$ 2. Mr. Hemant Bhargava @ 3. Mr. Saurabh Agrawal # 4. Mr. Banmali Agrawala # Total (II) Total Managerial Remuneration (I + II) 3,00,000 (cid:47)(cid:74)(cid:77)(cid:1) (cid:26)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17) 20,00,000 4,20,000 (cid:20)(cid:13)(cid:26)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) 12,00,000 20,00,000 39,90,000 3,50,00,000 (cid:36)(cid:70)(cid:74)(cid:77)(cid:74)(cid:79)(cid:72)(cid:1)(cid:66)(cid:84)(cid:1)(cid:81)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:1)(cid:9)(cid:33)(cid:1)(cid:18)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85)(cid:1)(cid:68)(cid:66)(cid:77)(cid:68)(cid:86)(cid:77)(cid:66)(cid:85)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:18)(cid:26)(cid:25)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:10)(cid:1) (Excluding any amount paid as sitting fees) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) Nil (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) (cid:47)(cid:74)(cid:77)(cid:1) Nil Nil (cid:1)(cid:9)(cid:846)(cid:10) Total Amount 74,80,000 70,40,000 54,20,000 54,50,000 60,40,000 43,60,000 3,57,90,000 3,00,000 20,90,000 4,20,000 3,90,000 32,00,000 3,89,90,000 (cid:846)(cid:1)(cid:20)(cid:15)(cid:22)(cid:21)(cid:1)(cid:68)(cid:83)(cid:80)(cid:83)(cid:70) (cid:1) (cid:11)(cid:1) (cid:38)(cid:89)(cid:68)(cid:77)(cid:86)(cid:69)(cid:70)(cid:84)(cid:1)(cid:40)(cid:52)(cid:53) & (cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:83)(cid:70)(cid:77)(cid:66)(cid:85)(cid:70)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:20)(cid:18)(cid:84)(cid:85)(cid:1)(cid:46)(cid:66)(cid:83)(cid:68)(cid:73)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:13)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:88)(cid:74)(cid:77)(cid:77)(cid:1)(cid:67)(cid:70)(cid:1)(cid:81)(cid:66)(cid:74)(cid:69)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:70)(cid:77)(cid:74)(cid:72)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:39)(cid:58)(cid:19)(cid:17)(cid:15) $ (cid:34)(cid:84)(cid:1)(cid:66)(cid:1)(cid:81)(cid:80)(cid:77)(cid:74)(cid:68)(cid:90)(cid:13)(cid:1)(cid:46)(cid:83)(cid:15)(cid:1)(cid:47)(cid:15)(cid:1)(cid:36)(cid:73)(cid:66)(cid:79)(cid:69)(cid:83)(cid:66)(cid:84)(cid:70)(cid:76)(cid:66)(cid:83)(cid:66)(cid:79)(cid:13)(cid:1)(cid:36)(cid:73)(cid:66)(cid:74)(cid:83)(cid:78)(cid:66)(cid:79)(cid:13)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:66)(cid:67)(cid:84)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:83)(cid:70)(cid:68)(cid:70)(cid:74)(cid:87)(cid:74)(cid:79)(cid:72)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:71)(cid:83)(cid:80)(cid:78)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:15)(cid:1) @ The Sitting Fees for attending meetings and the Commission was paid to LIC. # (cid:42)(cid:79)(cid:1)(cid:77)(cid:74)(cid:79)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:79)(cid:66)(cid:77)(cid:1)(cid:72)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1)(cid:79)(cid:80)(cid:1)(cid:81)(cid:66)(cid:90)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:74)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:80)(cid:88)(cid:66)(cid:83)(cid:69)(cid:84)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:47)(cid:38)(cid:37)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:13)(cid:1) who are in full time employment with another Tata company. 58 I Board’s Report 100th Annual Report 2018-19 C. (cid:1)(cid:1) Remuneration to Key Managerial Personnel other than MD/Manager/WTD (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) Sl. No. Particulars of Remuneration Key Managerial Personnel Mr. R. N. Subramanyam, Chief Financial Officer Mr. H. M. Mistry, Company Secretary (cid:1)(cid:9)(cid:846)(cid:10) Total 1. (cid:40)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1)(cid:84)(cid:66)(cid:77)(cid:66)(cid:83)(cid:90) (a) (cid:9)(cid:67)(cid:10)(cid:1) (c) Salary as per provisions contained in section (cid:18)(cid:24)(cid:9)(cid:18)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:14)(cid:85)(cid:66)(cid:89)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:23)(cid:18) (cid:1)(cid:55)(cid:66)(cid:77)(cid:86)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:70)(cid:83)(cid:82)(cid:86)(cid:74)(cid:84)(cid:74)(cid:85)(cid:70)(cid:84)(cid:1)(cid:86)(cid:16)(cid:84)(cid:1)(cid:18)(cid:24)(cid:9)(cid:19)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:14)(cid:85)(cid:66)(cid:89)(cid:1) (cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:23)(cid:18) Profits in lieu of salary under section 17(3) of (cid:85)(cid:73)(cid:70)(cid:1)(cid:42)(cid:79)(cid:68)(cid:80)(cid:78)(cid:70)(cid:14)(cid:85)(cid:66)(cid:89)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:23)(cid:18) 2. 3. 4. Stock Option Sweat Equity Commission (cid:16)(cid:3) (cid:16)(cid:3) (cid:66)(cid:84)(cid:1)(cid:6)(cid:1)(cid:80)(cid:71)(cid:1)(cid:81)(cid:83)(cid:80)(cid:246)(cid:85) others 5. Others, Retirement Benefits Total *(cid:1)(cid:42)(cid:79)(cid:68)(cid:77)(cid:86)(cid:69)(cid:70)(cid:84)(cid:1)(cid:49)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:49)(cid:66)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:39)(cid:58)(cid:18)(cid:25)(cid:1)(cid:81)(cid:66)(cid:74)(cid:69)(cid:1)(cid:74)(cid:79)(cid:1)(cid:39)(cid:58)(cid:18)(cid:26)(cid:15) VII. PENALTIES/PUNISHMENT/COMPOUNDING OF OFFENCES: (cid:19)(cid:13)(cid:20)(cid:18)(cid:13)(cid:24)(cid:24)(cid:13)(cid:26)(cid:21)(cid:20)(cid:15)(cid:23)(cid:17)* 1,01,64,470.00* 3,33,42,413.60* 1,02,74,765.78 7,72,036.80 1,10,46,802.58 (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:47)(cid:74)(cid:77) (cid:25)(cid:13)(cid:18)(cid:19)(cid:13)(cid:21)(cid:24)(cid:20)(cid:15)(cid:26)(cid:19) 3,42,65,183.30 (cid:26)(cid:13)(cid:19)(cid:24)(cid:13)(cid:18)(cid:20)(cid:25)(cid:15)(cid:26)(cid:23) 1,18,63,645.76 (cid:18)(cid:24)(cid:13)(cid:20)(cid:26)(cid:13)(cid:23)(cid:18)(cid:19)(cid:15)(cid:25)(cid:25) 4,61,28,829.06 Type Section of the Brief Details of Penalty/ Companies Act Description 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 (cid:46)(cid:86)(cid:78)(cid:67)(cid:66)(cid:74)(cid:13)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) None None None On behalf of the Board of Directors, N. Chandrasekaran Chairman (cid:1)(cid:9)(cid:37)(cid:42)(cid:47)(cid:27)(cid:1)(cid:17)(cid:17)(cid:18)(cid:19)(cid:18)(cid:25)(cid:23)(cid:20)(cid:10) Board’s Report I (cid:22)(cid:26) I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Annexure – IX : Secretarial Audit Report (Ref.: Board's Report, Section 26) FORM No. MR-3 (cid:52)(cid:38)(cid:36)(cid:51)(cid:38)(cid:53)(cid:34)(cid:51)(cid:42)(cid:34)(cid:45)(cid:1)(cid:34)(cid:54)(cid:37)(cid:42)(cid:53)(cid:1)(cid:51)(cid:38)(cid:49)(cid:48)(cid:51)(cid:53) (cid:39)(cid:48)(cid:51)(cid:1)(cid:53)(cid:41)(cid:38)(cid:1)(cid:39)(cid:42)(cid:47)(cid:34)(cid:47)(cid:36)(cid:42)(cid:34)(cid:45)(cid:1)(cid:58)(cid:38)(cid:34)(cid:51)(cid:1)(cid:38)(cid:47)(cid:37)(cid:38)(cid:37)(cid:1)(cid:20)(cid:18)(cid:52)(cid:53)(cid:1)(cid:46)(cid:34)(cid:51)(cid:36)(cid:41)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) (cid:9)(cid:49)(cid:86)(cid:83)(cid:84)(cid:86)(cid:66)(cid:79)(cid:85)(cid:1)(cid:85)(cid:80)(cid:1)(cid:52)(cid:70)(cid:68)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:19)(cid:17)(cid:21)(cid:1)(cid:9)(cid:18)(cid:10)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:20)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:86)(cid:77)(cid:70)(cid:1)(cid:47)(cid:80)(cid:15)(cid:1)(cid:26)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70) Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014) To, The Members, The Tata Power Company Limited (cid:56)(cid:70)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:69)(cid:86)(cid:68)(cid:85)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:70)(cid:68)(cid:83)(cid:70)(cid:85)(cid:66)(cid:83)(cid:74)(cid:66)(cid:77)(cid:1)(cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:84)(cid:85)(cid:66)(cid:85)(cid:86)(cid:85)(cid:80)(cid:83)(cid:90)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:69)(cid:73)(cid:70)(cid:83)(cid:70)(cid:79)(cid:68)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:72)(cid:80)(cid:80)(cid:69)(cid:1)(cid:68)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1) practices by The Tata Power Company Limited (hereinafter called 'the Company'). Secretarial Audit was conducted in a manner that (cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:69)(cid:70)(cid:69)(cid:1)(cid:86)(cid:84)(cid:1)(cid:66)(cid:1)(cid:83)(cid:70)(cid:66)(cid:84)(cid:80)(cid:79)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:67)(cid:66)(cid:84)(cid:74)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:70)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:68)(cid:80)(cid:83)(cid:81)(cid:80)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:68)(cid:80)(cid:79)(cid:69)(cid:86)(cid:68)(cid:85)(cid:84)(cid:16)(cid:84)(cid:85)(cid:66)(cid:85)(cid:86)(cid:85)(cid:80)(cid:83)(cid:90)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:70)(cid:89)(cid:81)(cid:83)(cid:70)(cid:84)(cid:84)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:86)(cid:83)(cid:1)(cid:80)(cid:81)(cid:74)(cid:79)(cid:74)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:80)(cid:79)(cid:15) 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 (cid:85)(cid:73)(cid:66)(cid:85)(cid:1) (cid:74)(cid:79)(cid:1) (cid:80)(cid:86)(cid:83)(cid:1) (cid:80)(cid:81)(cid:74)(cid:79)(cid:74)(cid:80)(cid:79)(cid:13)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1) (cid:73)(cid:66)(cid:84)(cid:13)(cid:1) (cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1) (cid:81)(cid:70)(cid:83)(cid:74)(cid:80)(cid:69)(cid:1) (cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1) (cid:90)(cid:70)(cid:66)(cid:83)(cid:1) (cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1) (cid:80)(cid:79)(cid:1) (cid:20)(cid:18)(cid:84)(cid:85)(cid:1) (cid:46)(cid:66)(cid:83)(cid:68)(cid:73)(cid:13)(cid:1) (cid:19)(cid:17)(cid:18)(cid:26)(cid:13)(cid:1) (cid:72)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:77)(cid:77)(cid:90)(cid:1) 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. (cid:56)(cid:70)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:70)(cid:89)(cid:66)(cid:78)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:67)(cid:80)(cid:80)(cid:76)(cid:84)(cid:13)(cid:1)(cid:81)(cid:66)(cid:81)(cid:70)(cid:83)(cid:84)(cid:13)(cid:1)(cid:78)(cid:74)(cid:79)(cid:86)(cid:85)(cid:70)(cid:1)(cid:67)(cid:80)(cid:80)(cid:76)(cid:84)(cid:13)(cid:1)(cid:71)(cid:80)(cid:83)(cid:78)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:83)(cid:70)(cid:85)(cid:86)(cid:83)(cid:79)(cid:84)(cid:1)(cid:246)(cid:77)(cid:70)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:83)(cid:70)(cid:68)(cid:80)(cid:83)(cid:69)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:66)(cid:87)(cid:66)(cid:74)(cid:77)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:86)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:78)(cid:66)(cid:74)(cid:79)(cid:85)(cid:66)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1) (cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:246)(cid:79)(cid:66)(cid:79)(cid:68)(cid:74)(cid:66)(cid:77)(cid:1)(cid:90)(cid:70)(cid:66)(cid:83)(cid:1)(cid:70)(cid:79)(cid:69)(cid:70)(cid:69)(cid:1)(cid:80)(cid:79)(cid:1)(cid:20)(cid:18)(cid:84)(cid:85)(cid:1)(cid:46)(cid:66)(cid:83)(cid:68)(cid:73)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26)(cid:1)(cid:66)(cid:68)(cid:68)(cid:80)(cid:83)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:27) (i) The Companies Act, 2013 (the Act) and the rules made thereunder; (cid:9)(cid:74)(cid:74)(cid:10)(cid:1) (cid:9)(cid:74)(cid:74)(cid:74)(cid:10)(cid:1) (cid:9)(cid:74)(cid:87)(cid:10)(cid:1) (cid:9)(cid:87)(cid:10)(cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:36)(cid:80)(cid:79)(cid:85)(cid:83)(cid:66)(cid:68)(cid:85)(cid:1)(cid:9)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:10)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:22)(cid:23)(cid:1)(cid:9)(cid:52)(cid:36)(cid:51)(cid:34)(cid:10)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:86)(cid:77)(cid:70)(cid:84)(cid:1)(cid:78)(cid:66)(cid:69)(cid:70)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:28) (cid:53)(cid:73)(cid:70)(cid:1)(cid:37)(cid:70)(cid:81)(cid:80)(cid:84)(cid:74)(cid:85)(cid:80)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:26)(cid:23)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:83)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:67)(cid:90)(cid:70)(cid:14)(cid:77)(cid:66)(cid:88)(cid:84)(cid:1)(cid:71)(cid:83)(cid:66)(cid:78)(cid:70)(cid:69)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:28) (cid:39)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1) (cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1) (cid:46)(cid:66)(cid:79)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:34)(cid:68)(cid:85)(cid:13)(cid:1) (cid:18)(cid:26)(cid:26)(cid:26)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:83)(cid:86)(cid:77)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:83)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) (cid:78)(cid:66)(cid:69)(cid:70)(cid:1) (cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1) (cid:85)(cid:80)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:70)(cid:89)(cid:85)(cid:70)(cid:79)(cid:85)(cid:1) (cid:80)(cid:71)(cid:1) (cid:39)(cid:80)(cid:83)(cid:70)(cid:74)(cid:72)(cid:79)(cid:1) (cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:1) Investment, Overseas Direct Investment and External Commercial Borrowings; (cid:9)(cid:69)(cid:10)(cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:74)(cid:79)(cid:72)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:40)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:1)(cid:81)(cid:83)(cid:70)(cid:84)(cid:68)(cid:83)(cid:74)(cid:67)(cid:70)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:18)(cid:26)(cid:26)(cid:19)(cid:1)(cid:9)(cid:52)(cid:38)(cid:35)(cid:42)(cid:1)(cid:34)(cid:68)(cid:85)(cid:10)(cid:27) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011; (a) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; (b) (cid:53)(cid:73)(cid:70)(cid:1) (cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1) (cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1) (cid:80)(cid:71)(cid:1) (cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1) (cid:9)(cid:42)(cid:84)(cid:84)(cid:86)(cid:70)(cid:1) (cid:80)(cid:71)(cid:1) (cid:36)(cid:66)(cid:81)(cid:74)(cid:85)(cid:66)(cid:77)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:37)(cid:74)(cid:84)(cid:68)(cid:77)(cid:80)(cid:84)(cid:86)(cid:83)(cid:70)(cid:1) (cid:51)(cid:70)(cid:82)(cid:86)(cid:74)(cid:83)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:10)(cid:1) (cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1) (cid:19)(cid:17)(cid:18)(cid:25)(cid:1) (cid:9)(cid:47)(cid:80)(cid:85)(cid:1) (cid:9)(cid:68)(cid:10)(cid:1) applicable to the Company during the audit period); (cid:53)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:9)(cid:52)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:35)(cid:66)(cid:84)(cid:70)(cid:69)(cid:1)(cid:38)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:1)(cid:35)(cid:70)(cid:79)(cid:70)(cid:246)(cid:85)(cid:84)(cid:10)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:21)(cid:1)(cid:9)(cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) Company during the audit period); The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008; (cid:53)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:9)(cid:51)(cid:70)(cid:72)(cid:74)(cid:84)(cid:85)(cid:83)(cid:66)(cid:83)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1)(cid:66)(cid:79)(cid:1)(cid:42)(cid:84)(cid:84)(cid:86)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:52)(cid:73)(cid:66)(cid:83)(cid:70)(cid:1)(cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:1)(cid:34)(cid:72)(cid:70)(cid:79)(cid:85)(cid:84)(cid:10)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:18)(cid:26)(cid:26)(cid:20)(cid:1)(cid:83)(cid:70)(cid:72)(cid:66)(cid:83)(cid:69)(cid:74)(cid:79)(cid:72)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:74)(cid:70)(cid:84)(cid:1)(cid:34)(cid:68)(cid:85)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:69)(cid:70)(cid:66)(cid:77)(cid:74)(cid:79)(cid:72)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:68)(cid:77)(cid:74)(cid:70)(cid:79)(cid:85)(cid:28)(cid:1)(cid:9)(cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1)(cid:81)(cid:70)(cid:83)(cid:74)(cid:80)(cid:69)(cid:10)(cid:28) (cid:53)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:9)(cid:37)(cid:70)(cid:77)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:71)(cid:1)(cid:38)(cid:82)(cid:86)(cid:74)(cid:85)(cid:90)(cid:1)(cid:52)(cid:73)(cid:66)(cid:83)(cid:70)(cid:84)(cid:10)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:19)(cid:17)(cid:17)(cid:26)(cid:28)(cid:1)(cid:9)(cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1) during the audit period) and (cid:53)(cid:73)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:9)(cid:35)(cid:86)(cid:90)(cid:67)(cid:66)(cid:68)(cid:76)(cid:1)(cid:80)(cid:71)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:74)(cid:85)(cid:74)(cid:70)(cid:84)(cid:10)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:19)(cid:17)(cid:18)(cid:25)(cid:28)(cid:1)(cid:9)(cid:47)(cid:80)(cid:85)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:85)(cid:80)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1) during the audit period). (e) (cid:9)(cid:71) (cid:10)(cid:1) (cid:9)(cid:72)(cid:10)(cid:1) (cid:9)(cid:73)(cid:10)(cid:1) (vi) Other industry specific laws applicable to the Company are as follows: (cid:1) (cid:1) (a) (cid:9)(cid:67)(cid:10)(cid:1) (cid:9)(cid:68)(cid:10)(cid:1) (d) The Electricity Act, 2003 (cid:53)(cid:73)(cid:70)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:79)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90)(cid:1)(cid:51)(cid:86)(cid:77)(cid:70)(cid:84)(cid:13)(cid:1)(cid:18)(cid:26)(cid:22)(cid:23) (cid:53)(cid:73)(cid:70)(cid:1)(cid:83)(cid:86)(cid:77)(cid:70)(cid:84)(cid:13)(cid:1)(cid:83)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:80)(cid:83)(cid:69)(cid:70)(cid:83)(cid:9)(cid:84)(cid:10)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:66)(cid:77)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:52)(cid:85)(cid:66)(cid:85)(cid:70)(cid:1)(cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:80)(cid:83)(cid:90)(cid:1)(cid:36)(cid:80)(cid:78)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:16)(cid:34)(cid:86)(cid:85)(cid:73)(cid:80)(cid:83)(cid:74)(cid:85)(cid:90) The Energy Conservation Act, 2001 (cid:56)(cid:70)(cid:1)(cid:73)(cid:66)(cid:87)(cid:70)(cid:1)(cid:66)(cid:77)(cid:84)(cid:80)(cid:1)(cid:70)(cid:89)(cid:66)(cid:78)(cid:74)(cid:79)(cid:70)(cid:69)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:74)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:68)(cid:77)(cid:66)(cid:86)(cid:84)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:74)(cid:79)(cid:72)(cid:27) (i) Secretarial Standards issued by The Institute of Company Secretaries of India with respect to board and general meetings. (cid:9)(cid:74)(cid:74)(cid:10)(cid:1) (cid:53)(cid:73)(cid:70)(cid:1)(cid:45)(cid:74)(cid:84)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1)(cid:34)(cid:72)(cid:83)(cid:70)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:70)(cid:79)(cid:85)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:74)(cid:79)(cid:85)(cid:80)(cid:1)(cid:67)(cid:90)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:35)(cid:52)(cid:38)(cid:1)(cid:45)(cid:74)(cid:78)(cid:74)(cid:85)(cid:70)(cid:69)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:47)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:52)(cid:85)(cid:80)(cid:68)(cid:76)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:45)(cid:74)(cid:78)(cid:74)(cid:85)(cid:70)(cid:69)(cid:1)(cid:83)(cid:70)(cid:66)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1) the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. (cid:37)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:70)(cid:83)(cid:74)(cid:80)(cid:69)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:83)(cid:70)(cid:87)(cid:74)(cid:70)(cid:88)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:73)(cid:66)(cid:84)(cid:1)(cid:68)(cid:80)(cid:78)(cid:81)(cid:77)(cid:74)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:81)(cid:83)(cid:80)(cid:87)(cid:74)(cid:84)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:34)(cid:68)(cid:85)(cid:13)(cid:1)(cid:51)(cid:86)(cid:77)(cid:70)(cid:84)(cid:13)(cid:1)(cid:51)(cid:70)(cid:72)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:13)(cid:1)(cid:40)(cid:86)(cid:74)(cid:69)(cid:70)(cid:77)(cid:74)(cid:79)(cid:70)(cid:84)(cid:13)(cid:1)(cid:52)(cid:85)(cid:66)(cid:79)(cid:69)(cid:66)(cid:83)(cid:69)(cid:84)(cid:1) etc. mentioned above. 60 I Board’s Report 100th Annual Report 2018-19 (cid:56)(cid:70)(cid:1)(cid:71)(cid:86)(cid:83)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:83)(cid:70)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:27) (cid:53)(cid:73)(cid:70)(cid:1)(cid:35)(cid:80)(cid:66)(cid:83)(cid:69)(cid:1)(cid:80)(cid:71)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:74)(cid:84)(cid:1)(cid:69)(cid:86)(cid:77)(cid:90)(cid:1)(cid:68)(cid:80)(cid:79)(cid:84)(cid:85)(cid:74)(cid:85)(cid:86)(cid:85)(cid:70)(cid:69)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:81)(cid:83)(cid:80)(cid:81)(cid:70)(cid:83)(cid:1)(cid:67)(cid:66)(cid:77)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1)(cid:80)(cid:71)(cid:1)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:13)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:38)(cid:89)(cid:70)(cid:68)(cid:86)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:37)(cid:74)(cid:83)(cid:70)(cid:68)(cid:85)(cid:80)(cid:83)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1) 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. (cid:56)(cid:70)(cid:1)(cid:71)(cid:86)(cid:83)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:83)(cid:70)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:85)(cid:73)(cid:70)(cid:83)(cid:70)(cid:1)(cid:66)(cid:83)(cid:70)(cid:1)(cid:66)(cid:69)(cid:70)(cid:82)(cid:86)(cid:66)(cid:85)(cid:70)(cid:1)(cid:84)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:81)(cid:83)(cid:80)(cid:68)(cid:70)(cid:84)(cid:84)(cid:70)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:68)(cid:80)(cid:78)(cid:78)(cid:70)(cid:79)(cid:84)(cid:86)(cid:83)(cid:66)(cid:85)(cid:70)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:84)(cid:74)(cid:91)(cid:70)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:80)(cid:81)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1) Company to monitor and ensure compliance with applicable laws, rules, regulations and guidelines. (cid:56)(cid:70)(cid:1)(cid:71)(cid:86)(cid:83)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:83)(cid:70)(cid:81)(cid:80)(cid:83)(cid:85)(cid:1)(cid:85)(cid:73)(cid:66)(cid:85)(cid:1)(cid:69)(cid:86)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:66)(cid:86)(cid:69)(cid:74)(cid:85)(cid:1)(cid:81)(cid:70)(cid:83)(cid:74)(cid:80)(cid:69)(cid:13)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1)(cid:73)(cid:66)(cid:69)(cid:1)(cid:71)(cid:80)(cid:77)(cid:77)(cid:80)(cid:88)(cid:74)(cid:79)(cid:72)(cid:1)(cid:70)(cid:87)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1)(cid:88)(cid:73)(cid:74)(cid:68)(cid:73)(cid:1)(cid:73)(cid:66)(cid:69)(cid:1)(cid:67)(cid:70)(cid:66)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:80)(cid:79)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:8)(cid:84)(cid:1)(cid:66)(cid:242)(cid:66)(cid:74)(cid:83)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1) pursuance of the above referred laws, rules, regulations, guidelines, standards etc. 1. The Company has sold Equity Shares held in Panatone Finvest Limited and Tata Communications Limited to Tata Sons Private Limited and Panatone Finvest Limited, respectively. The Board has approved Scheme of Arrangement for transfer of its Strategic Engineering Division (SED) to Tata Advanced Systems Limited. The Company has redeemed the following Debentures during the year:- (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:18)(cid:17)(cid:15)(cid:18)(cid:17)(cid:6)(cid:13)(cid:1)(cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:69)(cid:1)(cid:51)(cid:70)(cid:69)(cid:70)(cid:70)(cid:78)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:80)(cid:79)(cid:87)(cid:70)(cid:83)(cid:85)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:37)(cid:70)(cid:67)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84) (cid:18)(cid:17)(cid:15)(cid:21)(cid:17)(cid:6)(cid:13)(cid:1)(cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:71)(cid:70)(cid:83)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:52)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:69)(cid:1)(cid:51)(cid:70)(cid:69)(cid:70)(cid:70)(cid:78)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:80)(cid:79)(cid:87)(cid:70)(cid:83)(cid:85)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:37)(cid:70)(cid:67)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84) (cid:26)(cid:15)(cid:21)(cid:18)(cid:6)(cid:1)(cid:54)(cid:79)(cid:84)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:69)(cid:13)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:86)(cid:78)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1)(cid:51)(cid:70)(cid:69)(cid:70)(cid:70)(cid:78)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13)(cid:1)(cid:53)(cid:66)(cid:89)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13)(cid:1)(cid:45)(cid:74)(cid:84)(cid:85)(cid:70)(cid:69)(cid:13)(cid:1)(cid:51)(cid:66)(cid:85)(cid:70)(cid:69)(cid:13)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:80)(cid:79)(cid:87)(cid:70)(cid:83)(cid:85)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:37)(cid:70)(cid:67)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84) (cid:24)(cid:15)(cid:24)(cid:17)(cid:6)(cid:1)(cid:54)(cid:79)(cid:84)(cid:70)(cid:68)(cid:86)(cid:83)(cid:70)(cid:69)(cid:13)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:86)(cid:78)(cid:86)(cid:77)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1)(cid:51)(cid:70)(cid:69)(cid:70)(cid:70)(cid:78)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13)(cid:1)(cid:53)(cid:66)(cid:89)(cid:66)(cid:67)(cid:77)(cid:70)(cid:13)(cid:1)(cid:45)(cid:74)(cid:84)(cid:85)(cid:70)(cid:69)(cid:13)(cid:1)(cid:51)(cid:66)(cid:85)(cid:70)(cid:69)(cid:13)(cid:1)(cid:47)(cid:80)(cid:79)(cid:14)(cid:36)(cid:80)(cid:79)(cid:87)(cid:70)(cid:83)(cid:85)(cid:74)(cid:67)(cid:77)(cid:70)(cid:1)(cid:37)(cid:70)(cid:67)(cid:70)(cid:79)(cid:85)(cid:86)(cid:83)(cid:70)(cid:84) 2. 3. (cid:1) (cid:1) (cid:1) (cid:1) Place: Mumbai (cid:37)(cid:66)(cid:85)(cid:70)(cid:27)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) For Parikh & Associates Company Secretaries P. N. Parikh Partner (cid:39)(cid:36)(cid:52)(cid:1)(cid:47)(cid:80)(cid:27)(cid:1)(cid:20)(cid:19)(cid:24)(cid:1)(cid:1)(cid:1)(cid:36)(cid:49)(cid:1)(cid:47)(cid:80)(cid:27)(cid:1)(cid:1)(cid:18)(cid:19)(cid:19)(cid:25) 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. 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. 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Our examination was limited to the verification of procedure on test basis. 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(cid:23)(cid:15)(cid:1) Place: Mumbai (cid:37)(cid:66)(cid:85)(cid:70)(cid:27)(cid:1)(cid:19)(cid:79)(cid:69)(cid:1)(cid:46)(cid:66)(cid:90)(cid:1)(cid:19)(cid:17)(cid:18)(cid:26) For Parikh & Associates Company Secretaries P. N. Parikh Partner (cid:39)(cid:36)(cid:52)(cid:1)(cid:47)(cid:80)(cid:27)(cid:1)(cid:20)(cid:19)(cid:24)(cid:1)(cid:1)(cid:1)(cid:36)(cid:49)(cid:1)(cid:47)(cid:80)(cid:27)(cid:1)(cid:1)(cid:18)(cid:19)(cid:19)(cid:25) Board’s Report I 61 I E C T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S MANAGEMENT DISCUSSION & ANALYSIS The Tata Power Company Limited 1. INDUSTRY DEVELOPMENTS Global Power Sector The rising environmental concerns accompanied by technological advancements is driving transformation of the global energy landscape. Since 2010, the costs of new solar PV solutions have come down by over 73% and for wind solutions by an estimated 30% facilitating rapid deployment of renewable resources globally. Renewables have become the technology of choice, as a result of falling costs and supportive government policies. It has brought about a change in the electricity markets from centralized to decentralized power markets, opening business service opportunities for power utilities. As the world is also rapidly electrifying, electricity generation continues to be reliant on coal, especially in developing economies. Change in generation mix skewed towards non-fossil fuels is quite evident in the advanced economies. A move towards cleaner energy mix and a service-oriented economy is being witnessed in major energy consuming nations like China, US and India. It may be noted that many of the initiatives to improve the quality of air in cities are only changing the type of engines (fuel) but the true impact will be determined by the proportion of non-fossil fuel-based generation as compared to conventional fossil fuel-based generation. The electricity sector is undergoing a transformation, driven by higher demand brought about by digital economy, electric vehicles and other technological change. On the other hand, a continuing wave of energy- efficient usage is containing the pace of growth. In the global context, abundance of natural resources and government actions towards climate change are driving change across nations. Availability of abundant natural gas from newly discovered shale gas deposits in the US is prompting increased use of gas in electricity generation in the U.S. Government regulations restricting carbon emission is ensuring increased usage of renewables in the EU, with several Europeans nations undertaking significant renewable energy targets of more than 30% of power generation mix by 2030. Countries like France, U.K, Finland and Canada have announced plans to phase out coal by 2030. Africa’s shortage of electric power is one of the greatest challenges, and the push to electrify the continent provides solar and storage solutions to bridge this gap. Around 600 million people in Sub-Saharan Africa lack access to electricity and power needs are slowly being driven by renewables. Renewables is gaining prominence with several new projects, grants and funding deals being announced in Africa. Taking a cue from the depressed oil prices, oil dominated 62 I Management Discussion & Analysis Middle East embarked upon a diversification drive that is resulting in significant transformation of Middle East power sector. As a means of diversifying its power mix, the MENA region is increasingly shifting its focus towards renewables. The region has witnessed large investments in renewables driving some of the cheapest solar PV and onshore wind projects globally. Following Morocco and Egypt, Tunisia and Algeria in North Africa are implementing significant renewable energy programmes. Increased private sector participation in the Middle East is also taking place in an otherwise public dominated sector of the region. South-East Asia is witnessing rapid growth in energy demand driven by rising population, growing urbanization and increasing industrialization benefitting from shift of supply chain from North Asia into this region. Electricity demand continues to exceed supply in economies growing between 5-7%. While there has been a growing emphasis on renewables, the surging power demand buttressed by universal electricity access and abundance of thermal fuel means substantial share of investments is still in thermal plants. There is a growing adoption of electric vehicles (EVs) globally and the same is expected to put further pressure on oil prices. Global EV sales exceeded two million in 2018, with more than half of global sales in China. In terms of penetration, the Nordic countries led by Norway remain the world’s most advanced market for electric cars. The EV charging infrastructure has also grown rapidly with the growth in number of electric vehicles. At the same time, the trend of decentralised energy generation, spurred by a sharp decrease in costs of distributed energy resources, is gaining prominence. Storage solutions-key to address intermittent challenge of renewable energy- are also being developed that would play a balancing act between power demand and supply. Global energy storage additions doubled to more than 9 GWh in 2018. Renewables along with energy storage is gaining price parity with falling costs of lithium-ion batteries. Suppliers of lithium batteries have expanded their production plans as sales of EVs increase. Rise of renewable energy capacities along with policy initiatives in key markets like China, Europe, South Korea and US is adding on to this momentum. The global energy shifts are leading to the gradual blurring of the lines between consumers and producers. There is large scale integration of grids between nations to enable cross border electricity trading. Asia is expected to power the growth engine with China leading the growth. All the aforementioned factors, coupled with the need for affordable, sustainable and modern energy systems, is shaping the global power sector. 100th Annual Report 2018-19 Indian Power Sector According to the International Monetary Fund (IMF), India will continue to be the world’s fastest growing economy and will expand by 7.5% in FY20 and 7.7% in FY21. The power demand in the country is expected to grow at 6.18% between FY17 and FY22, according to the Central Electricity Authority (CEA), driven by rising industrial demand. Further, demand revival will be driven by various reforms undertaken by the Government of India, viz. the UDAY scheme, ‘24*7 Power for All’ initiative and the ‘Saubhaghya’ scheme. Under the UDAY scheme, discoms need to modernise their networks and lower their distribution losses – fixing this infrastructure deficit will be the strongest theme in the Indian power sector. The attempts at bringing down the gap (losses) between the cost of power purchase and selling price of the state discoms has met with very little success despite ambitious programmes like UDAY. This continues to be a limiting factor for emergence of the potential demand for cheap power. After initially recording gains due to interest savings, the lack of structural reforms is increasing the losses at the discoms with very few exceptions. The sector also continues to suffer from large number of non-performing assets (NPAs) resulting in the Banking sector becoming more cautious in lending to the sector. The Government is also focusing on growing the renewable energy segment due to sustainability and climate change obligations. The cost of renewable energy has fallen and is now at parity with conventional sources. While coal is expected to remain a significant fuel source in the country’s quest to provide power to every citizen, this segment will experience limited growth. The CEA has estimated that future greenfield capacity addition in coal-fired plants is likely to be carried out by the Central Public Sector (CPSU) firms only on account of to weak private sector intent due to lack of PPAs. With limited greenfield thermal capacity addition going forward, thermal sector PLFs may firm up over the medium to long-term. However, higher coal prices and constrained domestic coal availability continue to remain key areas of concern especially for private sector power plants. The imposition of the new environmental norms by the MoEF&CC, effective from the year 2022, will result in requirement of additional capital along with an increase in tariffs. 1.1. GENERATION India’s installed generation capacity stands at 356 GW as on 31st March 2019, which excludes about 51 GW of captive generation capacity. Grid connected capacity addition during FY19 was 12 GW vis-à-vis 17 GW during FY18. Thermal Generation Share of coal-based capacities in India’s total installed capacity has remained at around 52% over the last ten years (FY19 vs FY09) while that of renewables has risen from 9% to 22%. The PLF of thermal based plants was 61% in FY19 vis-à-vis 77% in FY09. Renewable Generation The Government’s 175 GW renewable energy target by 2022 along with declining cost of renewables have provided the impetus for rapid increase in renewable based capacities. In FY19, 20 GW renewable projects were awarded. The overall renewable addition was 8.6 GW vs. 11.8 GW in FY18. In FY19, a 25% safeguard duty was introduced on PV cell and module imports. Despite the levy, the cost of solar generation continued to be low and tariffs continued to remain between ₹ 2.50-3.00 per unit. Installed Capacity (GW) 250 200 150 100 50 0 194 78 78 45 37 25 15 13 7 4 7 1 FY19 FY09 Fig 1 - India Generation Mix (in GW) and Share by Generation Source, as on 31st March 2019 (Source: MoP, GoI, CEA) 1.2. FUEL India Limited (CIL) and Coal produced by Coal its subsidiaries was 607 MT in FY19 against 567 MT in FY18, posting a y-o-y growth of 7%. Railway infrastructure bottlenecks, however, pose challenge for supporting further growth in domestic coal production, necessitating coal imports by power utilities. Thermal coal imports during FY19 grew at about 9% y-o-y also supported by declining international coal prices during second half of 2018. Global Coal Price Movement (USD/Tn) 119.6 114.3 117.3 114.2 108.7 106.5 106.0 105.3 96.7 93.7 101.4 98.6 100.7 95.4 93.1 125.0 120.0 115.0 110.0 105.0 100.0 95.0 90.0 85.0 80.0 Fig 2 - Global Coal Price The global coal prices fell from a high of about USD 120/ MT (Newcastle FOB) in July 2018 to around USD 93/MT in March 2019. 1.3. TRANSMISSION The backbone transmission system in India is mainly through 765 kV, 400 kV and 220 kV AC networks, with the Management Discussion & Analysis I 63 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S highest transmission voltage level being 800 kV (HVDC). Total transmission lines capacity increased to nearly 4.13 lakh Ckms, reflecting an increase of about 22,437 Ckms over FY18. The transmission substation capacity reached 8.99 lakh MVA by March 2019 reflecting an increase of 72,705 MVA over FY18. the government With changing generation mix on account of increased renewables, is emphasizing on augmentation of transmission infrastructure to support demand growth. In order to expedite the development of transmission lines for solar parks, the government has decided to award these projects to private players through tariff based competitive bidding (TBCB). 1.4. DISTRIBUTION Distribution continues to be the weakest link in the power supply chain on account of the financial stress of electricity utilities. As discussed above, 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), and targeted improvement in operational parameters thereby reducing leakages in the system. So far, many states and UTs have signed up for UDAY and bonds worth ₹ 2.32 lakh crore have been issued by the state governments and tariff revisions happened in 25 states/UTs since the beginning of the scheme. The progress of the revival scheme for discoms launched in November 2015 remains slow since the total AT&C loss levels were at 20% in March 2019 compared to a target of 15%. While discom losses reduced to ₹ 17,352 crore in FY18 from ₹ 51,096 crore in FY16, the outstanding discom dues to gencos rose to more than ₹ 40,000 crore by the end of FY19, adding to the woes of the already stressed power generating companies. (sources: www.uday.gov.in; www.praapti.in) The power ministry has also emphasized bringing distribution losses to 15% and ensuring 24x7 power to all by 2019. With limited opportunities in the distribution franchises and PPP route to distribution, Tata Power is looking at distribution services like smart meters, smart grids, LED street lighting, advisory services projects etc. At the same time, Tata Power is also supporting a lot of discoms across the country in improving their efficiencies. 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. However, this may take a long time to get realized on ground. At the same time, many of the state discoms have started to look at distribution franchisee route to enhance the efficiency of local discom in certain urban areas. Distribution franchisee models currently exist in states like Rajasthan, Maharashtra, Odisha, UP that have private players appointed as electricity distribution franchisee for certain areas to help improve the high AT&C losses in those areas. Jharkhand is also likely to operationalize this model. 64 I Management Discussion & Analysis The Tata Power Company Limited 1.5. POWER TRADING Around 144 billion units (BUs) of electricity were traded in the short-term power market during FY19, as compared to a total of 128 BUs traded during FY18. Out of this, about 34% of trading took place using power exchange platforms. The trading margins were under immense pressure due to high competition amongst traders. The competition grew fierce due to an increase in the number of CERC licensed traders from 11 in FY05 to 43 in FY19. At ₹ 3.86 per unit, the average clearing price for spot markets in FY19 increased by 18% as compared to the previous fiscal. The increase in spot price is largely attributable to lack of availability of coal, increase in demand and outage of various thermal power plants due to various reasons. 1.6. 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 FY19: Renewables (cid:120) (cid:120) Waiver of transmission charges and losses on power from solar and wind power plant The Ministry of Power has waived the levy of inter-state transmission charges and losses on transmission of electricity through the inter-state transmission system for wind and solar projects commissioned till 31st March 2022. Domestic Manufacturing of Solar Equipment The Ministry of New and Renewable Energy (MNRE), Government of India, announced the following policies to boost domestic manufacturing and to safeguard the interests of existing domestic manufacturers. - Mandatory certification as per IS and for supply, storage, registration by BIS distribution and installation of solar modules, inverters and storage battery (this will ensure reliability of operations for 25 years). Safeguard duty introduced on imports of cells and modules for two years. Preference for Make in India: Government of India and all departments/companies controlled by it to accord preference to for domestically manufactured products use in renewable energy projects. Minimum percentage of local content has been prescribed in the policy. Approved Models and Manufacturers of Solar PV modules (Requirement of Compulsory registration) Order as per which post 31.03.2020, only those modules can be used which have been pre-qualified and enlisted by MNRE. 12 GW of solar projects to be set up till FY23 under - - - - 100th Annual Report 2018-19 CPSU scheme phase-II with domestic solar cells and modules and VGF of ₹ 8,580 crore. 1.5 GW ISTS connected solar PV Tender linked to setting up of 3 GW of solar manufacturing plant cells, modules) announced. A total of 10 GW of solar PV linked to 20 GW of manufacturing capacity is envisaged under the scheme. (ingots, wafers, (cid:120) CERC Tariff Regulations 2019-24 CERC issued the Tariff Regulations for the period FY19-24 for generating stations operating under 62 of the EA, 2003. In these regulations, CERC has adopted a conciliatory tone on tariffs, allowing compensation for the loss of coal heating value during storage and retained the current regulated return on equity. (cid:120) Phase II of Grid Connected Rooftop Solar Programme 40 GW of rooftop capacity till 2022 with an outlay of ₹11,814 crore has been announced with Central Financial Assistance (CFA) only for capacity additions during the year in their respective areas of jurisdiction. (cid:120) Kisan Urja Suraksha evam Utthaan Mahabhiyaan (KUSUM) The scheme is with an outlay of ₹ 34,422 crore and provides opportunities for small solar plants in rural areas and for solarisation of irrigation pumps. (cid:120) The National Wind Solar Hybrid Policy The policy was announced for optimisation of use of land and transmission infrastructure and achieving better grid stability through reduced variability. Capacity of 840 MW has already been tendered out and another 1.8 GW is under bidding. (cid:120) in Generation and Policy on Flexibility Scheduling of Thermal Generating Stations to reduce the cost of power to the consumer Ministry of Power has issued the policy with the purpose of optimization of overall cost of generation by replacing the generation load from generating stations with high generation cost to generating stations with lower cost of generation. While, this policy aims at company-level optimisation, subsequent proposal notes by POSOCO and discussion paper by CERC developed on similar lines, envisages optimisation at the national level. CERC has directed POSOCO to initiate a pilot study to implement the proposed mechanism. (cid:120) Draft Amendments proposed to Electricity Act and National Tariff Policy The Ministry of Power (MoP) issued the draft proposed amendments to Electricity Act which along with other changes focussed on Wires and Supply segregation for the distribution sector. Also, Ministry of Power (MoP) has issued the draft proposed amendments to Tariff Policy and Electricity Rules. The proposed discom reforms which include capping of AT&C losses to 15%, direct benefit transfer of subsidy, prepaid metering, simplification of tariff categories would help to spur power demand and potentially restart the PPA cycle. losses, to allow pass The most prominent and impactful regulations include no reduction of equity for older plants, permission through of coal handling incentives on making higher power generation during peak hours, and higher allowance on the operational and maintenance expenses. Another positive is that the regulator has allowed the loss of 85 kcal per gross calorific value coal between unloading and firing point. Earlier, the generator had to bear the loss on fuel damage from unloading to firing point leading to under recoveries. (cid:120) Directorate General (DG) Shipping Circular This regulation allows a maximum limit of 0.50% of sulphur in bunker fuel from 1st January 2020 onwards and is going to impact transportation costs for imported fuel. Representation has been made to MoP and CERC for notifying suitable changes in regulations for compensating for the increase in cost to power plants based on imported fuel. (cid:120) National Green Tribunal’s (NGT) Order on Fly Ash Utilization NGT directed all thermal power stations which failed to dispose off 100% fly ash upto 31st December 2017, to deposit damages for environment restoration, as per MoEF notification dated 25th January 2016. For thermal plants upto 500 MW, cost of damages is ₹ 1 crore and for plants beyond 1,000 MW, it is ₹ 5 crore. In case any claim of 100% compliance is found to be false, the amount of penalty payable may be upto 5 times. The order was challenged in the Hon’ble Supreme Court which allowed the appellants to represent their cases before NGT. The Tribunal directed all Applicants to approach the Joint Committee (yet to be constituted) to represent their case. The Committee has been directed to furnish its report by 31st May 2019. The order on suspension of deposit of damages, as per the Hon’ble Supreme Court order, will continue till the Committee submits its report. It has been found in case of CGPL and Jojobera that the fly ash utilization has not been 100%. Tata Power has made its representation through the Association of Power Producers (APP). Management Discussion & Analysis I 65 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Transmission & Distribution (cid:120) Launch of SAUBHAGYA – Pradhan Mantri Sahaj Bijli Har Ghar Yojana In order to maximize value for its stakeholders, the Company has been making efforts to simplify, synergize and scale up its businesses: The Tata Power Company Limited The scheme was launched with a total outlay of ₹ 16,320 crore. The objective of the scheme is to provide last mile connectivity and electricity connections rural and to all households urban areas. As of 2nd May 2019, 99.99% of all households in the country have been electrified while 18,734 households remain to be electrified. It is expected to increase the demand for power in the country and, thereby, increase the utilisation of generation assets. in 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 across segments. reviewed fast-changing The management has landscape of the power industry and proposes to gear up for the major shifts likely in the next decade. Accordingly, the following will be the strategic focus areas both internally and externally: the (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Renewables - The Company is eyeing growth in utility scale solar projects and continues to look for projects with sustainable and certain returns. The Company has launched retail Rooftop solar business catering to small enterprises and household needs in 18 cities. Thermal - The Company is looking for acquisition of stressed coal-based assets through its venture, Resurgent Power Ventures Pte Limited, with leading global investors. Distribution – The focus is on increasing the existing footprint through addition of new distribution franchisees and Public-Private-Partnerships (PPP) with discoms as and when they will be available. New Business – While the Company has mainly been in business-to-business and business-to- government segments, it is now also evaluating options in the consumer business as an integrated service provider. The Company looking to scale-up growth in service led-business areas in distribution, solar EPC and thermal generation along with rooftop solar, microgrids and electric vehicle charging infrastructure. is International Operations – After reviewing the growth and performance of its international investments, the Company will evaluate those investments for further potential for scaling up and achieving market leadership and will take a decision based on the reviews. Financials – The focus is to deleverage the balance sheet by monetising non-core assets and pursuing less asset-intensive growth. 66 I Management Discussion & Analysis Simplify: a) b) The Company is making efforts to simplify its structure by reducing the number of entities and cross holdings and is looking to scale-up a few but important growth areas while evaluating exit from sub-scale assets/non-core investments. This will help the Company respond faster to market changes and lend agility. The following actions were taken during the year in this direction: (cid:120) (cid:120) (cid:120) Sale of TCL and PFL; Sale of SED; Purchase of 100% shares in EEPL, a wholly owned subsidiary of CGPL by TERPL, a wholly owned subsidiary of the Company; Exploring opportunities monetize overseas investments. review and to (cid:120) c) Henceforth, all the businesses of the Company will (cid:120) be categorized in the following segments: Thermal and Hydro Generation (including CGPL and coal investments) Renewables Transmission and Distribution Others (cid:120) (cid:120) (cid:120) Each of the above segments will have a dedicated organization and reporting structure. From FY20 onwards, financial reporting will also be made according to these segments. Synergize: The Company will seek to capitalize on the synergies existing within the Tata group to support its strategic plans. Your Company is privileged to have a large and unique ecosystem to leverage ideas, knowledge, expertise and scale of the group. Scale: The Company is present in many areas of the energy value chain which have scalable potential. Some of them present a significant opportunity for growth where the Company will look to scale-up through investment, consolidation and collaboration. Tata Power’s SWOT The Company’s key strengths include the Tata brand which lends credibility with stakeholders, operational excellence, presence across the power value chain and significant regulated business providing stable cash-flows. To enable future growth, balance sheet leverage needs to be optimized and the Company is taking appropriate measures to address the same. Tata Power has identified significant growth opportunities in the sector which have been elaborated further in Section 3, MD&A. Weak financial health of discoms, unanticipated regulatory changes and technology disruptions like battery storage pose challenges to the Company’s business. 100th Annual Report 2018-19 3. OPPORTUNITIES AND OUTLOOK The Indian market continues to remain the primary focus of business for your Company. Currently, 4.9% (530 MW) of your Company’s generation capacity is based in international geographies with another 187 MW under execution. As mentioned earlier, the Company has plans to grow in the areas of renewable generation, distribution and new and service-led businesses. (cid:120) Renewables Generation Your Company is a leading player in renewables generation with presence across the value chain. It is expected that there would be significant growth opportunities in renewables (both organic and inorganic) in the future and the Company plans to increase its footprint through value-accretive projects. (cid:120) Thermal Generation Your Company plans to grow its coal-based power plant portfolio through the inorganic route and look for viable opportunities to acquire stressed thermal assets through its platform – Resurgent Power Ventures Pte. Limited. The Company has acquired a long-term coal mining license for the Krutogorovskya coal deposit located in the Sobolevo District, Kamchatka of the Russian Federation under competitive bidding, to explore cheaper and sustainable coal supply for its subsidiary, CGPL. (cid:120) Transmission Growth in the transmission segment will be very selective and will likely be linked to generation evacuation opportunities. (cid:120) Distribution With growing focus on improving the state of distribution business, more states have been adopting the Distribution Franchisee (DF) model while a few have invited bids through the Public- Private Partnership (PPP) route. The Company constantly evaluates such opportunities and aims to be a leading player in this space. (cid:120) New and Service-Led Businesses The Company is looking at scaling up its service businesses i.e., businesses with little or no capital investment (distribution services, power trading, is also thermal O&M services, solar EPC), and evaluating opportunities in emerging business areas such as microgrids, rooftop solar, energy efficiency solutions and electric vehicle charging stations. 4. RISKS AND CONCERNS Tata Power is faced with risks that can be divided into three key categories: (cid:120) (cid:120) (cid:120) Risks common to all players in the sector Risks specific to the Company Disaster Management and Business Continuity risks The key risks and concerns facing the power sector in India are as follows: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) The poor financial health of state discoms continues to be a factor that impedes the growth of the sector. This is a major concern area for investors in the sector leading to higher return expectations, which, in turn, will result in higher tariffs. The availability of cost-effective capital for funding of new projects is a cause of concern given banks’ current exposure to power sector and stranded assets, which may result in NPAs. The large number of stranded and under-utilized thermal assets adds to the already overburdened discoms by way of fixed costs. Climate change related norms are likely to increase this burden, slowing down the pace of growth in demand. Though from an renewables are welcome 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. This could slow down the renewables sector. Infrastructure constraints such as domestic coal output, bottlenecks logistics and port in rail capacity may affect the transportation of coal. Shortage of domestic gas and expensive LNG imports affects the financial viability of gas-based power plants. Cyber Security risk which industries globally. is affecting various The key risks and concerns specific to your Company along with main mitigation measures are as follows: 1. 2. 3. 4. 5. Continuing losses at CGPL (Mundra UMPP) – The Company is pursuing the case for increase in tariff and hopes for an early resolution. There is higher focus on reducing coal cost by blending with lower calorific value (CV) coal. The mine ownership provides some protection from volatility. Renewal of licence of KPC mines in Indonesia – The licence expires in 2021. The renewal is under consideration by the Government of Indonesia. High Leverage – The borrowings of the Company have increased due to mounting losses at CGPL. All efforts are being made to monetise non-core assets to bring down the debt levels. Risk of collection from discoms: So far, this risk has not impacted the Company, but the risk needs to be tracked closely based on developments in the sector. The Company has carefully spread its risk by not allowing concentration in states with higher risk. Risk of sector stagnation: Unless the Government of India, together with the state governments, implement undertake a concerted effort to Management Discussion & Analysis I 67 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S regulatory and financial reforms, there is a risk of stagnation of the sector despite the overall demand continuing to grow. The British Standards Institution (BSI) had done a recertification 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 assessed by BSI before awarding the ISO 22301:2012 certification 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. In view of the re- organisation into key business verticals, the Company will be publishing results in a new format from FY20 onwards. The Company’s business is primarily driven by strong performance by regulated businesses, renewables and cost optimization. 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 capitalising on favourable market conditions while ensuring stable returns. Highlights of operational performance of key entities are listed below: 5.1. RENEWABLES The numbers below demonstrate the overall renewable portfolio of the Company which includes TPREL, TPSSL, WREL and Tata Power Standalone assets. Particulars (Table 1) FY18 2,110 Installed Capacity (MW) 3,227 Generation Sales (MUs) 1,752 Solar (MUs) 1,475 Wind (MUs) Gross Revenue (` crore) 4,764 EBITDA (` crore) 2,087 PAT (` crore) 395 Assets Deployed* (` crore) 14,922 Debt** (` crore) 9,483 Equity** (` crore) 5,814 *Gross Block (PPE + Intangible Assets) has been considered for Assets Deployed ** TPC Wind & Solar equity and debt has been considered as per Financials FY19 2,310 3,912 2,329 1,583 5,537 2,369 435 16,022 10,686 6,085 Type of entity: Wholly owned subsidiary Particulars Generation Sales (MUs) Net sales (` crore) PAT (` crore) (Table 2) FY18 882 522 186 FY19 1,450 774 89 68 I Management Discussion & Analysis The Tata Power Company Limited The company’s higher revenue and sales were due to addition of solar capacity during this year, early commissioning of sites and better performance of the recently commissioned sites. During FY19, the following new solar projects got added – 100 MW at Anantapuram, Karnataka (2 blocks of 50 MW each), 100 MW at Pavagada, Karnataka (2 blocks of 50 MW) and 16 MW of rooftop solar. The Pavagada site has five blocks (total of 250 MW) out of which two blocks got commissioned 5 months prior to the scheduled commissioning date. The Company is executing a 150 MW solar PV project for the Maharashtra State Electricity Distribution Company Limited (MSEDCL) at Chhayan site in Rajasthan for which land acquisition has been completed. The project is progressing as per schedule and is expected to get commissioned by August 2019. The remaining 150 MW capacity at Pavagada is under commissioning and the project progress is as per the schedule. TPREL has also signed a 100 MW PPA with Uttar Pradesh Power Corporation Limited (UPTCL) and Noida Power Corporation Limited (NPCL), awarded through a bid process conducted by the Uttar Pradesh New and Renewable Energy Development Agency is 21 months. (UPNEDA). The commissioning schedule The commissioned capacity at the end of FY19 was 875 MW which included Vagarai Wind Farm Limited (21 MW) and Indorama Renewable Jath Ltd (30 MW). 5.1.1.1. WALWHAN RENEWABLE ENERGY LIMITED-WREL (1,010 MW) Type of entity: Wholly owned subsidiary (through TPREL) WREL is now a fully owned subsidiary of TPREL. It has an operating capacity of 1,010 MW, out of which 864 MW is solar and 146 MW is wind power. A major part of the capacity is in Tamil Nadu, followed by Rajasthan, Madhya Pradesh, Karnataka and Andhra Pradesh. Operating Performance The generation achieved by WREL in FY19 was 1,745 MUs as against 1,669 MUs in FY18. The higher generation of 67 MUs was on account of removal of evacuation constraints at Pratapgarh site, better grid availability at the Tamil Nadu sites, implementation of seasonal tilting, repowering of partially degraded sites, reinstatement of capacity at the Bihar site after it was damaged by social miscreants in September 2017 and better plant availability. Financial Performance Particulars Net Sales (` crore) PAT (` crore) (Table 3) FY18 1,669 1,223 238 FY19 1,745 1,272 300 WREL achieved a total revenue of ₹ 1,272 crore and a PAT of ₹ 300 crore. Improvement in PAT was due to lower cost of borrowings and higher plant load factor during the year. 5.1.1. TATA POWER RENEWABLE ENERGY LIMITED - TPREL (875 MW) Generation Sales (MUs) 100th Annual Report 2018-19 5.1.2. TATA POWER SOLAR SYSTEMS LIMITED – TPSSL Type of entity: Wholly owned subsidiary (Table 4) FY18 Particulars FY19 3,175 90 2,749 100 Net sales (` crore) PAT (` crore) The company executed and commissioned several large projects across multiple states and delivered rooftop projects across the country, leading to revenue growth. In FY19, TPSSL achieved the highest revenue ever, crossing the ₹ 3,000 crore mark with record turnover contribution from the Large Projects and the Products business lines. Operating Performance In this financial year, 1,095 MW of utility-scale solar projects have been executed or are currently under execution. Two blocks of the KREDL Pavagada project, i.e. 100 MW of the total 250 MW project capacity, were commissioned about five months before the scheduled commissioning date. The 75 MW GSECL Dhuvaran project was commissioned 40 days ahead of schedule. TPSSL further fortified its manufacturing capabilities this year and produced over 127 MW cells and 308 MW of modules. It has now attained module wattages of 335 Wp using its own cells. In the solar products domain, over 4,300 solar agricultural pumps were installed in ten states in FY19, a growth of 80% from FY18. is currently under execution, In the rooftop solar domain, about 84 MW capacity was including executed or 16 MW of PPAs. The Rooftop Focus City Launch campaign, targeting 100 cities across India, kicked off in September 2018 in New Delhi and had covered 18 cities by end of FY19. The company also achieved a significant milestone in its exports business and recorded export revenue of over ₹ 106 crore to clients in Denmark, Ukraine, Netherlands and Sweden. 5.1.3. RENEWABLES DIVISION ON THE BALANCE-SHEET OF THE PARENT COMPANY (379 MW) Type of entity: Division Particulars Generation Sales (MUs) (Table 5) FY18 646 FY19 632 The portfolio comprises 376 MW of wind assets and 3 MW of solar assets at Mulshi. The carve-out process for said assets from Tata Power to TPREL is under review. 5.1.4. TATA POWER HYDROS (447 MW) Type of entity: Division Particulars Generation Sales (MUs) (Table 6) FY18 1,493 FY19 1,548 In FY19, generation was higher than FY18 due to above normal rainfall in the hydro catchment area, higher plant availability and reduced auxiliary consumption. Lake levels have been maintained to meet the requirement of peak power till next monsoon (i.e. till June-July 2019). Availability for FY19 at 99.54% was maintained higher than previous year at 98.98% due to proactive actions taken based on preventive maintenance practices, effective condition monitoring and better planning and execution of planned outages. 5.2. CGPL, COAL AND RELATED INFRASTRUCTURE COMPANIES 5.2.1. COASTAL GUJARAT POWER LIMITED - CGPL (4,150 MW) Type of entity: Wholly owned subsidiary (Table 7) Particulars Generation Sales (MUs) Net sales (₹ crore) Loss (₹ crore) FY19 24,752 7,064 (1,654) FY18 24,599 6,271 (1,783) Loss in FY19 was lower at ₹ 1,654 crore as compared to FY18 mainly due to impairment provision of ₹ 311 crore in FY18 offset by sale of shares of EEPL in the current year. Under-recovery of fuel cost is listed below: (Table 8) Particulars Total Revenue* (₹ crore) EBITDA** (₹ crore) Fuel under-recovery*** (in ₹ crore) (in ₹ per kWh) FY19 7,137 (194) FY18 6,299 (156) (2,080) (2,068) (0.84) (0.84) *Total revenue consists of Revenue from Operations and Other Income including proceeds from sale of investments after accounting for rebate and Ind AS 115 impact **FY18 EBITDA does not include impairment provision of ₹ 311 crore *** Consists of total coal cost under recovery (revenue net of coal costs) funding It is pertinent to note that the decrease in EBIDTA in CGPL is due to higher O&M cost in FY19. The Company continues to engage with the procuring states to find a solution for long-term viability of the plant. CGPL - Refinancing of Forex Loan In FY19, CGPL completed refinancing of the outstanding ECB loans amounting to ~USD 770 million (approx. ₹ 5,500 crore) through a mix of INR-denominated debt instruments and equity from proceeds of divestment of non-core assets. The benefits accruing from the refinancing include (i) reduction of debt burden at CGPL (ii) rescheduling the amortization of loans resulting in increased sustainability of debt servicing (iii) reduction of effective interest cost in CGPL and (iv) reduction of foreign exchange related volatility for CGPL. As a result, going forward, Tata Power’s annual sponsor support commitments towards debt servicing obligations of CGPL will reduce substantially. The Company is making efforts to improve profitability through initiatives like sourcing of low-cost coal from other geographies and increasing blending of low calorific value coal. Management Discussion & Analysis I 69 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Russian Coal Mine Development Project PT Nusa Tambang Pratama, Indonesia (Table 11) The Tata Power Company Limited The Company has acquired a long-term coal mining license for the Krutogorovskya coal deposit located in the Sobolevo District, Kamchatka of the Russian Federation under competitive bidding, to explore cheaper and sustainable coal supply for its subsidiary CGPL. Far East Natural Resources LLC (FENR) is a registered local subsidiary entity of Tata Power incorporated in Russia to develop this coal mine. Firm estimates of reserves and resource are being assessed through detailed drilling and exploration activities which are presently under progress. 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. 5.2.2. 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. Your Company has signed an agreement to sell its 30% stake in PT Arutmin Indonesia and associated companies in coal infrastructure. The aggregate consideration for the stake is USD 401 million, subject to certain closing adjustments and restructuring actions. To date, the Company has received USD 161 million out of which USD 94 million is in cash and the balance is by way of receivables adjustment. Your Company is pursuing steps to conclude this transaction. trading and PT Kaltim Prima Coal, Indonesia Particulars Gross sales* (` crore) PAT* (` crore) (Table 9) FY18 25,518 3,632 FY19 25,997 2,462 *figures are on 100% basis. The Company’s share is 30% The coal price realization for the year was at USD 64/tonne as compared to USD 68/tonne in FY18. KPC’s profitability was adversely affected due to Indonesian Government’s DMO policy (refer Section 8.2, Board’s Report). PT Baramulti Suksessarana Tbk and PT Antang Gunung Meratu Indonesia (Table 10) Particulars Net sales* (` crore) PAT* (` crore) FY19 3,169 354 FY18 2,554 551 *figures are on 100% basis. The Company’s share is 26% The production at the Indonesian thermal coal mining companies, viz. PT Kaltim Prima Coal, PT Baramulti Suksessarana Tbk. and PT Antang Gunung Meratus Indonesia was 70 MT as compared to 66 MT in FY18. The status of infrastructure companies at Indonesia was as under: 70 I Management Discussion & Analysis Particulars Net sales* (₹ crore) PAT* (₹ crore) *figures are on 100% basis. The Company’s share is 30% FY18 1,021 624 FY18 FY19 1,019 632 FY19 871 155 5.2.3. TRUST ENERGY RESOURCES PTE. LIMITED- TRUST ENERGY Type of entity: Wholly owned subsidiary (Table 12) Particulars 695 179 Net sales (₹ crore) PAT (₹ crore) PAT was lower as compared to FY18 due to lower coal shipments volume. The three ships owned by Trust Energy maintained an overall availability of more than 99% with no major safety incidents. Coal shipments for Mundra Power Plant were performed as per plan in FY19. The company continued to undertake several measures to improve the operating efficiencies and reduce operating expenditure by optimising insurance premium and ensuring a lean structure to manage overhead costs. The daily operating expenses for all three ships are at benchmark levels as per industry standards. 5.3. THERMAL GENERATION 5.3.1. 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) *figures are on 100% basis. The Company’s share is 74% (Table 13) FY18 6,987 2,270 182 FY19 6,858 2,776 273 In FY19, PAT increased mainly due to the impact of order from APTEL and tariff order from CERC. MPL maintained its strong financial position as evident by the ratings given by CARE and CRISIL for the long term (CARE AA) and short- term (CRISIL A1+) bank facilities. 5.3.2. INDUSTRIAL ENERGY LIMITED- IEL (375 MW) Type of entity: Subsidiary (Tata Power: 74%, Tata Steel: 26%) (Joint Venture under Ind AS) Particulars Generation Sales (MUs) Net sales* (₹ crore) PAT* (₹ crore) *figures are on 100% basis. The Company’s share is 74% (Table 14) FY18 2,592 373 70 FY19 2,992 300 111 IEL operates a 120 MW tolling 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. 2 out of 3 units of 67.5 MW each of co-generation plant at Kalinganagar, Odisha, are also under operation by deploying production gases from Tata Steel’s plant. 100th Annual Report 2018-19 In FY19, net sales decreased due to tolling arrangement with Tata Steel for Unit 5, Jojobera. However, PAT increased due to better performance of Unit 5 & Unit 6 and full- year plant operations at Kalinganagar. The Company will execute the third turbine of 67.5 MW co-generation plant at Kalinganagar, Odisha, based on discussions with Tata Steel for Phase Two of the steel plant. 5.3.3. TROMBAY (1,430 MW) Type of entity: Division Particulars (Table 15) FY18 5,949 FY19 6,092 Generation Sales (MUs) With 95% plant availability in FY19, the performance was better as compared to FY18 (93%). Unit 5 and Unit 7 overhauling were successfully completed within the stipulated time frame. The plant has undertaken several operational improvement measures including reduction in auxiliary consumption, optimizing operational expenses and reducing store inventory etc. Trombay thermal power station has completed IMS surveillance audit for all four ISO standards. 5.3.4. JOJOBERA (428 MW) Type of entity: Division Particulars Generation Sales (MUs) (Table 16) FY18 2,836 FY19 2,604 Generation and plant availability (92%) were less than the previous year’s availability (97%) due to scheduled plant outage which was undertaken for various measures to increase efficiency and improve specific raw water consumption. 5.3.5. HALDIA (120 MW) Type of entity: Division Particulars Generation Sales (MUs) (Table 17) FY18 703 FY19 704 Generation sales in FY19 were marginally better than the previous fiscal. Some of the challenges which impacted generation during the year included lower flue gas availability from Tata Steel due to higher planned and forced outages of coke oven plant. The plant availability in FY19 stood at 90% vis-à-vis 83% in FY18. 5.4. TRANSMISSION 5.4.1. MUMBAI TRANSMISSION The transmission assets, which are a part of the Mumbai license area, had a grid availability of 99.50% 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. Particulars Grid Availability (%) Transmission Capacity (MVA) FY19 99.50 9,803 (Table 18) FY18 99.37 9,598 The key highlights of the year are listed below: (cid:120) (cid:120) (cid:120) (cid:120) A 145 kV GIS project was successfully commissioned at Saki, Mumbai on 31st January 2019 by charging from 110 kV Salsette Saki 4 line. A new 110 kV receiving station was commissioned at Kurla to cater additional load. MMRDA overhead to underground conversion for Metro 3 yard at BKC was completed in July 2018. ~ 2600 no. of contract workmen across T&D were trained in TPSDI for different courses. 5.4.2. POWERLINKS TRANSMISSION LIMITED – PTL Type of entity: Subsidiary (Tata Power: 51%, PGCIL: 49%) (Table 19) (Joint Venture under Ind AS) Particulars Net sales* (₹ crore) PAT* (₹ crore) FY19 146 113 FY18 161 125 *figures are on 100% basis. The Company’s share is 51% In FY19, PAT was lower during the year mainly due to one- time MAT credit utilised in FY18. Operations The availability of the lines was maintained at 99.97% for Eastern Region in FY19 (previous year availability stood at 99.83%) and 99.94% for Northern Region (previous year availability was 99.95%), as against the minimum stipulated availability of 98.50%. 5.5. DISTRIBUTION 5.5.1. MUMBAI DISTRIBUTION The highlights of the Mumbai Distribution business are as (Table 20) follows: Particulars Sales (MUs) FY19 4,521 FY18 4,393 Consumer Base (Nos.) 7,01,438 6,86,629 (cid:120) (cid:120) (cid:120) (cid:120) Shutdown for Tata Power consumers was avoided on multiple occasions during the outage of 110 kV Borivali-Malad lines 1 & 2 for MMRDA’s Metro work of line-7 (Andheri East to Dahisar East). Installation of substation at 44th floor of Lodha World Tower – for the first time in India, a transformer was raised to 44th floor using tower crane. Inauguration of the country’s first ‘All-Women’ Customer Relations Centres (CRCs) in Andheri, Borivali and Khar in Mumbai. All the functions at these CRCs, including security, will be handled by women. Became the first Power utility to enable online, automated e-NACH payments (Electronic National Automated Clearing House), in collaboration with IDFC Bank. using bill Management Discussion & Analysis I 71 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 5.5.2. TATA POWER DELHI DISTRIBUTION LIMITED – TPDDL Type of entity: Subsidiary (Tata Power: 51%, Government of National Capital Territory (NCT) of Delhi: 49%) Particulars Distribution Sales (MUs) Net sales* (` crore) PAT (` crore) (Table 21) FY18 8,634 7,104 306 FY19 8,870 7,600 336 *includes net movement in regulatory deferral account balance Operations: In FY19, TPDDL had a registered customer base of 16.96 lakh spanning across an area of 510 sq. km. in North and North-West parts of Delhi. The AT&C losses stood at 8.16% as against 7.92% last year. TPDDL met a peak demand of 1,967 MW in FY19 as compared to 1,852 MW in FY18. In its endeavour to enhance reliability, TPDDL was able to reduce the System Average Interruption Duration Index (SAIDI) to a level of 31.39 hours against 25.70 hours in previous financial year. Further, in its quest to enhance system reliability and win customer affection, TPDDL took several initiatives to ease the process of new connection, billing and payment for its customers. As part of its Advanced Metering Infrastructure (AMI) deployment, TPDDL deployed RF mesh canopy in its area of operation and is in the process of Smart Meter roll-out for its customers. In FY19, 63,629 Smart Meters were installed within the licensed area. Further, to increase transparency and customer satisfaction, the data generated from the Smart Meters has been integrated to TPDDL Mobile app and a WhatsApp service has also been provided to the customers to capture and provide the meter reading thereby making it a one stop destination for all requirements of the consumers. TPDDL also enhanced the Digital Payment Index to 57.3%, thereby, taking a step towards developing a cashless and consumer friendly payment experience. Also, two “All Women Customer Care Centre” were inaugurated to expand diversity within the organisation and to strengthen women empowerment. The World Bank in its ‘Doing Business 2019’ Report also acknowledged Tata Power-DDL’s contribution towards improving the ease of getting a new electricity connection through process simplification. This contributed to a jump in India’s ranking from 29 to 24, thus, taking India above several developed nations such as Australia and United States. TPDDL also crossed a critical milestone of 650+ in its Tata Business Excellence Model (TBEM) Assessment in FY18. With this, it became the 3rd Tata Group Company to achieve the milestone of becoming ‘Industry Leader’. On the technology front, TPDDL became the first Indian utility to implement Advanced Distribution Management System (ADMS) which was integrated with GIS - Power Manager with real time synchronization to all assets in 72 I Management Discussion & Analysis The Tata Power Company Limited the field. TPDDL also jointly developed 16 use cases with Hitachi on Advanced Data Analytics on areas focussing on reliability improvement, AT&C loss reduction, customer service, resource optimization, etc. Additionally, TPDDL became the first utility in India to deploy a 10 MWh Battery Energy Storage System (BESS), which is the largest such system in South Asia. It also signed an MoU with EDF (Europe) and Enedis (France) to jointly take up Smart Grid Projects, Distribution and Franchisee models in India and other geographies. Under the Horizon 2020 program, funded by the European Union, TPDDL is deploying an Energy Island System, integrated with Smart Meters, LV automation, solar rooftop and Energy Storage systems which would enable demand response programs and islanding of critical areas. 5.5.3. TATA POWER AJMER DISTRIBUTION LIMITED - TPADL Type of entity: Wholly owned subsidiary Particulars Distribution Sales (MUs) Net sales (` crore) PAT (` crore) (Table 22) FY18 303 244 (3.88) FY19 465 378 0.40 TPADL, a wholly-owned subsidiary of the Company was formed on 17th April 2017 as a Special Purpose Vehicle (SPV) to take-over the supply and distribution of power in Ajmer city. The total area under the franchisee is around 190 sq km. The total consumer base is around 1.4 lakh and total peak demand is 112.05 MW observed in the month of June 2018. On the commercial front, AT&C losses reduced to 11.2% by the end of FY19 from 17.4% in FY18. Tripping on 11 kV & 33 kV voltage-level reduced by 31% and 45% respectively in FY19. The PAT, in FY19, was higher due strong operational performance led by drastic reduction in the AT&C levels. For women empowerment in the organisation, the first 100% women operated consumer service centre was inaugurated at Ajmer city. 5.6. OTHER BUSINESSES 5.6.1. SERVICES In FY19, the Services division provided O&M management services for 1,800 MW capacity, complete O&M services for 99 MW, Corporate Management Services for 1,425 MW and Asset Management Services for 692 MW of wind and solar assets. In addition, the division provided services such as GIS testing, electrical testing etc., to various clients. 5.6.2. TATA POWER TRADING COMPANY LIMITED - TPTCL Type of entity: Wholly owned subsidiary (Table 23) Particulars Generation Sales (MUs) Net sales (` crore) PAT (` crore) FY19 10,442 262 37 FY18 12,406 238 15 100th Annual Report 2018-19 PAT has increased mainly due to higher realisation for sale of power from Dagachhu Hydro Power Corporation Limited (DHPC) in Bhutan, improvement in working capital cycle, improved financing, higher consultancy income including REC and efficient receivable management. The losses in FY19 were mainly on account of lower plant load factor due less than normal rainfall received in the catchment area. DHPC sold 401 MUs of energy at the Indo Bhutan periphery in FY19. 5.7.3. ITEZHI TEZHI POWER CORPORATION LIMITED – ITPC 5.6.3. NEW BUSINESSES (120 MW) Your Company has been the front runner to propagate the change towards sustainable energy. In the same spirit, the Company plans to play a crucial role in enabling a stronger penetration of EVs in the country, thus fulfilling our commitment to power India’s future in an environmentally sustainable way. In FY19, Tata Power signed strategic MoUs to set up EV charging stations with Oil Marketing companies like HPCL, IOCL and is working closely with other key stakeholders in creating and promoting the EV charging ecosystem in India. Further, over the past year, Tata Power EV charging network’s presence was established in Mumbai, Delhi, Hyderabad, Bengaluru, Vishakhapatnam, Vijayawada and Lucknow under various business models. The Company aims to continuously grow its EV charging infrastructure footprint by installing charging stations at other strategic locations across the country. 5.7. INTERNATIONAL BUSINESSES 5.7.1. CENNERGI PTY LIMITED – CENNERGI (230 MW) Type of entity: Joint Venture [Tata Power (through Khopoli): 50%, Exxaro Resources Limited: 50%] Particulars Generation Sales (MUs) Revenue* (₹ crore) EBIDTA* (₹ crore) (Loss)/Profit* (₹ crore) *figures are on 100% basis. The Company’s share is 50% FY19 728 555 531 86 (Table 24) FY18 742 513 366 (46) Cennergi is an independent power producer jointly owned by Tata Power (50%) and Exxaro Resources Ltd. (50%). The 134 MW Amakhala Emoyeni wind farm was commissioned on 28th July 2016 with the 95 MW Tsitsikamma Community Wind Farm reaching COD on 18th August 2016. Both, Amakhala and Tsitsikamma wind farms performed well in FY19 and operated with plant availability of 98.03% and 98.22% respectively. PAT is higher mainly on account of increase in tariff as per PPA, lower interest cost due to refinancing and impact of hedge accounting in FY18. 5.7.2. DAGACHHU HYDRO POWER CORPORATION LIMITED- DHPC (126 MW) Type of entity: Associate (Tata Power 26%, DGPC & (Table 25) Affiliates: 74%) Particulars Generation Sales (MUs) Net sales* (₹ crore) Loss* (₹ crore) *figures are on 100% basis. The Company’s share is 26% FY19 495 124 (25) FY18 522 128 (44) Type of entity: Joint Venture (Tata Power: 50%, ZESCO: 50%) Particulars Generation Sales (MUs) Net sales* (` crore) PAT* (` crore) *figures are on 100% basis. The Company’s share is 50% FY19 722 661 658 (Table 26) FY18 781 600 299 ITPC has completed three years of commercial operations now. The ITPC project has been developed in Itezhi Tezhi district approximately 330 kms. from the capital city of Lusaka. The project is funded by African Development Bank (AfDB), Development Bank of Southern Africa (DBSA), Netherland’s Development Finance Company (FMO) and Proparco from France and the Government of India by way of Line of Credit through India Exim Bank to Government of Zambia. The Company’s main concern is the recovery of overdues of USD 208 Mn. (Company’s 50% share) from its single customer ZESCO. While ZESCO has committed to resolve the issue by raising resources, the Company continues to engage with the Government of Zambia and the project lenders to resolve this issue. In FY19, the annual availability of the power plant stood at 99.7% with total energy generation of 722 MUs at a Plant Load Factor (PLF) of 69.45%. The generation was lower due to water management by ZESCO to facilitate sequential unit outages at Kafue Gorge Power Station for planned activities, thus necessitating reduced water release from Itezhi Tezhi in spite of very good rainfall and inflow. 5.7.4. ADJARISTSQALI GEORGIA LLC Type of entity: Joint Venture [Tata Power (through TPIPL):40%, Clean Energy International Finance Corporation (IFC): 20%] Invest: 40%, 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. The plant is currently not in operations on account of collapses experienced in certain sections of the tunnels. The Company has entered into a settlement of claims with its insurers, the proceeds of which would be used towards restoration and repair of the tunnels. The Company has negotiated a restructuring package with the project lenders to sustain the viability of the project. AGL has engaged experts from Austria and Brazil in tandem with the Owners Engineer team (Mott MacDonald UK) to identify the root cause of the collapses and understand the inconsistent geological behaviour in these tunnels so as to finalise remedial work design required in the affected sections. The repair work is progressing satisfactorily. Management Discussion & Analysis I 73 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 6. PROJECTS COMMISSIONED DURING FY19 (Table 27) Vehicle for project execution Scale Key Highlights TPREL TPREL PROJECTS UNDER EXECUTION 7. 100 MW Solar project commissioned at Anantapuram Solar Park, Andhra Pradesh 100 MW Solar project commissioned at Pavagada, Karnataka (Table 28) Vehicle for project execution Scale Key Highlights TPREL 400 MW (Solar) Projects under construction in FY19 include: (cid:120) 150 MW project at Pavagada solar park, Karnataka (cid:120) 150 MW MSEDCL project at Chhayan, Rajasthan (cid:120) 100 MW UPNEDA project. Land parcels have been identified and project enabling works are being lined up. 8. ENABLERS TO BUSINESS 8.1. 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 comprehensive Sustainability model in its journey towards Sustainability which includes the key element of ‘Care’ (described in Section 12, Board’s Report). The Company’s is hosted on its website: https://www.tatapower.com/sustainability/ communication.aspx. (Alternately, scan the adjacent QR Code using a mobile device to read the report on the Company website) latest Sustainability Report a 8.1.1. CARE FOR OUR PEOPLE (cid:120) (cid:120) (cid:120) Safety: Safety is a core value at Tata Power and all necessary actions are taken at the organisation to keep safety as priority. Safety performance of the Company has been reported in Section 11 in the Board’s Report. Safety and 5S programs of the Company have been given a lot of thrust during FY19. Training and awareness programs and safety drills were carried out across various locations of the organisation. Talent Management & Employee Engagement: Tata Power considers talent as its distinguisher in the market and takes necessary steps for effective talent management at Tata Power. Multiple means of engagement like Focus Group Discussions (FGD), one-on-one meetings, engagement centric townhalls, leadership interactions have been deployed to ensure that the employee pulse is captured accurately. Frequent and outcome-oriented interactions have led to superior employee experience. Industrial Relations: Tata Power, since its inception, has supported working collaboratively with all stakeholders to maintain cordial industrial relations at all locations. During FY19, two long term settlements were signed between the 74 I Management Discussion & Analysis (cid:120) (cid:120) to the discussions were management and the unions to drive key organizational imperatives. This was achieved after multiple rounds of meetings and intense engagement between the negotiating committee comprising representatives from the management and unions. The overarching objectives pursued during improve competitiveness of the Company in the marketplace and organisational readiness to meet the dynamic business challenges in the solar industry. The negotiations took place in an environment of mutual trust and respect. Key imperatives in the settlement included optimization of work shift pattern, employee multi skilling, redeployment of employees to growth areas of the Company coupled with capability building of redeployed employees. For all activities undertaken during the year, necessary support was provided to the staff and union. Harmonious industrial relations and activities at all locations progressed peacefully and cordially during the year. Considering Restructuring: Organisation the opportunities to be pursued and challenges to be addressed, the organization structure was redesigned in FY19. During this exercise, business verticals were clearly demarcated into Generation, Transmission, Distribution and Renewables with dedicated teams like Business Development integrated into these verticals for enhanced accountability. Capability Building & Leadership Development: Furthering the endeavour to nurture and develop leaders, Tata Power has partnered with Tata Management Training Centre (TMTC) to design and deliver a Leadership ‘Achieving Your Leadership Development Program: Potential’ (AYLP), which has been prudently crafted with inputs of Apex Leadership in line with business landscape, key priorities, competencies focus, expectations from future leaders, intervention objectives, from the perspective of benefitting the organization and the participants, both in the short and long term. This program is conceptualized, designed and delivered by renowned faculty from TMTC, with a pedagogy of varied learning methodologies, interspersed with action learning projects. Development programs provided to employees in 100th Annual Report 2018-19 (cid:120) cover technical, functional, managerial and leadership domains, in line with individual, team, department and organisational needs. Prevention of Sexual Harassment: The Company has zero tolerance for sexual harassment at the work place 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. Internal Complaints Committee (ICC) is in place for all administrative units or offices of Tata Power to redress complaints received regarding sexual harassment. 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. Few of the initiatives taken up in FY19 to spread awareness regarding POSH across the Company are listed below. (cid:120) (cid:120) (cid:120) Launch of e-Training Module of POSH for employees to learn policy related intricacies in an interactive way. Spreading awareness through creative POSH screen savers displayed on all employee laptops and desktops. innovative ways Spreading awareness through like creating film related to POSH, arranging POSH related competitions etc. All these initiatives got a huge response and appreciations across the company. Summary of sexual harassment issues raised, attended and dispensed during FY19: (cid:131) (cid:131) (cid:131) No. of complaints received: 0 No. of complaints disposed off: 0 No. of cases pending for more than 90 days: Nil 8.1.2. CARE FOR OUR COMMUNITY Tata Power Group Companies undertook CSR initiatives in alignment to the 5 thrust areas as outlined in their respective CSR Policy. The business entities include Tata Power Company Ltd, Tata Power – Delhi Distribution Ltd, Coastal Gujarat Power Ltd, Tata Power Solar Systems Ltd., Tata Power Renewable Energy Ltd, Walwhan Renewable Energy Ltd., Tata Power Trading Company Ltd, Powerlinks Transmission Ltd., Aftaab Industrial Energy Ltd., NDPL (Infra) and Maithon Power Ltd. The geographical coverage included 348 villages and 220 clusters across 15 states of the country. Investment Ltd., At the Tata Power Group level, against an annual CSR obligation of ₹ 36.75 crore, the business entities spent ₹ 44.58 crore in FY19. The CSR expenses at Tata Power group included IEL and Powerlinks, which are JVs and are considered as subsidiaries, as per the Companies Act, 2013. Excluding IEL and Powerlinks, the CSR spent stood at ₹ 39.46 crore against the CSR obligation of INR 31.69 crores in FY19. A total of 24.67 lakh beneficiaries were covered against the target of 20.30 lakh. The Company employees logged 82,867 hours of volunteering which was 3 times higher than the previous year figure. Key Highlights of Interventions (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) In the education thrust area, 1.6 lakh children were covered and 69% improvement in academic performance was achieved against an annual target of 60%. Under health and sanitation, 4.13 lakh women and children were covered with a focus on integrated community health and behavioural change through communication. 2.51 lakh beneficiaries were covered under skill building and livelihood. The average monthly household income increased to ₹ 4,500. In TPSDI, 48% SC/ST youth were trained with 80% placements, an all-time high figure for the institute. Through water interventions, 11.7 lakh beneficiaries were covered. 1.3 Affirmative Action. lakh beneficiaries were covered under 8.1.3. CARE FOR OUR ENVIRONMENT The following key initiatives were completed in FY19: (cid:120) (cid:120) (cid:120) Your Company is in the process of minimizing installing Flue Gas atmospheric pollution by Desulphurization (FGD) systems at all coal fired power plants by 2022 (as per dates given by the Ministry of Power, GoI). Your Company has improved the ash utilization at its coal fired power stations. Your Company is continuously working on reduction in fresh water consumption at thermal power plants. 8.2. FINANCING Refinancing of debts During the year, the Company refinanced the entire external commercial borrowings (ECB) debts of CGPL amounting to USD 810 million. The ECB debt was refinanced with ₹ 2700 crore of NCDs having bullet repayment of 5 and 10 years: Borrowings Outstanding borrowings of the Company as on 31st March 2019 are as follows: (Table 29) Particulars Standalone (` crore) Consolidated (` crore) Long Term Borrowings Short Term Borrowings Current maturing of LTB 8,749.72 6,731.80 1,971.00 31,139.23 13,875.38 3,491.43 Total 17,452.52 48,506.04 Management Discussion & Analysis I 75 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Particulars Standalone (` crore) Consolidated (` crore) Rupee Borrowings 17,433.52 41,770.85 Foreign Currency Borrowings 19.00 6,735.19 Total 17,452.52 48,506.04 Debt repayment During the year, an amount of ₹ 5,232 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 23; Consolidated – Note 21] Repayment Schedule (Standalone) (Table 30) Consolidated The Tata Power Company Limited (Table 33) FY19 FY18 Particulars 47 2.50 2.80 2.40 2.66 Net Debt/Equity without non- controlling interest * Net Debt/Equity, including non- controlling interest Debtors Turnover ratio (days) ** Interest Coverage Ratio (ICR) with exceptional items # ! Interest Coverage Ratio (ICR) without exceptional items ! Current Ratio ## ! Operating Profit Margin ^ Net Profit Margin ^^ Note - Formulae used are same as for Table 32. ! Reason for variation (>25%) : The Current Ratio increased due to increase in 0.37 22% 8% 0.26 23% 10% 0.77 0.58 0.58 0.69 48 Figures in ` crore (Table 31) receivables from customers and increase in regulatory assets. FY20 FY21 FY22 FY23 FY24 FY25 & Beyond Debentures 541.00 341.00 336.00 546.00 336.00 1,882.00 Term Loans and others 1,430.00 1,164.78 1,087.03 455.87 710.81 1,909.09 Key financial parameters as on 31st March 2019 - Standalone (Table 32) Particulars FY19 Net Debt/Equity* EBITDA/Net Debt Debtors Turnover ratio (days)** Interest Coverage Ratio (ICR) with exceptional items # ! Interest Coverage Ratio (ICR) without exceptional items ! Current Ratio ## ! Operating Profit Margin^ Net Profit Margin^^ ! 1.11 0.17 60 2.13 1.37 0.28 31% 21% FY18 1.14 0.20 62 (1.31) 1.77 0.22 33% (37)% *(Long term borrowing + short term borrowing + current maturities less current investment, cash and bank balance)/ Total Equity. **Average receivables/ income from operations x 365 days #Finance cost/ EBIT ##Current assets/ current liabilities ^ Operating profit/income from operations ^^ PAT/Total income. ! Reason for variation (>25%): The net profit margin and ICR (with exceptional items) increased mainly due to recording of gain on sale of investment in associates and charge of impairment of investments in subsidiaries as exceptional items in FY19 and FY18 respectively. ICR without exceptional items reduced mainly on account of lower dividend from subsidiaries and associate companies. The Current Ratio increased due to increase in receivables from customers and increase in regulatory assets. Credit Rating As on 6th May 2019, your Company had the following four domestic credit ratings. These long-term ratings have been assigned on the basis of consolidated credit profile of Tata Power and its subsidiaries: o o o o CRISIL: AA- With Stable Outlook CARE: AA With Stable Outlook ICRA: AA- with Stable Outlook India Rating: IND AA with Stable Outlook Hedging Your Company is exposed to risk from market fluctuations of foreign currency on account of coal import, project imports etc. and exposures are primarily for Tata Power Standalone, CGPL and TPSSL. 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 a monthly basis and decides suitable hedging strategies. The Company has been hedging its exposure through various hedge instruments such as forwards, options or a combination of both. The Tata Power group has approx. ` 3,148 crores of currency exposure, which has been hedged by use of forwards and options contracts. Besides currency, the Company also has exposures on interest rate i.e. USD LIBOR as it has borrowed in foreign currency. The interest rate risk is also managed through suitable hedging strategies. The derivative instruments are valued on mark-to-market and any gains or losses are passed on through the profit & loss account. Cash flows from operating activities Cash generated from operations of your Company, post-adjustments to profit after tax, has decreased from 76 I Management Discussion & Analysis 100th Annual Report 2018-19 ₹ 2,767.49 crore in FY18 to ₹ 1,683.33 crore in FY19. This is primarily due to liquidation of regulatory assets in FY18. On a consolidated level, net cash flow from operating activities decreased from ₹ 6,363.85 crore to ₹ 4,573.80 crore. This is primarily due to increase in receivables from consumers in the current year. (cid:120) (cid:120) 8.3. BUSINESS EXCELLENCE Your Company continued its cost saving activities under Business Excellence. These cost saving initiatives saved more than ` 150 crore in FY19. The major programs under these initiatives were: (cid:120) (cid:120) (cid:120) Sankalp – This is a program to bring in operational excellence, delivery excellence and cost efficiency using Performance Total Operational methodology. During the year, 9 projects were undertaken, and 55 officers participated in these projects. the Six Sigma – Six Sigma is a disciplined, statistical- based, data-driven approach and continuous improvement methodology for eliminating defects in a product, process or service. During FY19, 53 officers participated in 9 such projects. LASER – It was introduced to motivate workforce to perform better at work and at the same time enjoy their life, leading to a better work-life balance. During the year, 140 projects were undertaken, and 970 employees participated in these projects. 8.4. INFORMATION AND COMMUNICATION TECHNOLOGY readiness was undertaken Cyber security continues to be a top priority for your Company. During the year, an assessment on cyber security through CERT- IN certified Auditors for Mumbai Transmission and Distribution businesses and an action plan, based on the recommendations, was implemented. Your Company also ran a holistic Security Awareness programme across its major establishments and stations covering both aspects of security – physical and IT Security. Additionally, your Company has been re-certified for ISO 22301 for Business Continuity and ISO 31000 for Risk Management practices. 8.5. DIGITALIZATION INITIATIVES During the year, the following key digitalisation initiatives were implemented to offer Tata Power’s customers a wider choice and an enhanced experience: (cid:120) IVR Self-service (Interactive Voice Response) enabled for automatic registration and assignment of customer complaints and requests. A total of 19 self-service applications were made available on Tata Power customer portal with real time integration with ERP system. It enables customers for online submission of application, making payment and uploading documents. An online energy management tool was launched for HT Consumers to monitor their daily energy consumption, thus, enabling them to take corrective and preventive actions to help them save energy (cid:120) (cid:120) and bill expenses. Interactive ChatBot/VoiceBot application launched enabling consumers to use voice commands to avail various services. e-Payment options were enhanced further by addition of new payment avenues including Bharat Interface for Money (BHIM) App, Bharat Bill Payment System (BBPS) and Dynamic Bharat or UPI linked QR Codes. Your Company is the 1st power utility in India to provide Dynamic UPI-linked QR code payment option and has also started printing BharatQR code on power supply bills for ease of bill payment. 8.6. PARAM SANKALP In 2016, your Company had launched Param Sankalp, a 30-month long organisation wide O&M transformation through adoption of Reliability Centered program Maintenance (RCM). The program was launched to improve our assets’ reliability and performance, embed in-class Operations and Maintenance processes best (O&M), while optimizing cost. Your Company has successfully setup all the foundation elements of RCM, implemented best practices and digitally enabled it to become the first company in India to fully adopt comprehensive and extensive RCM. 9. FINANCIAL PERFORMANCE – STANDALONE Your Company recorded a profit after tax of ₹ 1708.58 crore during the financial year ended 31st March 2019 (the loss after tax was ₹ 3,150.52 crore in FY18). Both the basic and the diluted earnings per share were at ₹ 5.90 for FY19. The analysis of major items of the Standalone financial statements is shown below (Section 9.1 to 9.10: Statement of Profit and Loss; Section 9.11 to 9.27: Balance Sheet items) 9.1. REVENUE Particulars FY19 FY18 Change % Change Figures in ` crore (Table 34) Revenue from Power Supply and Transmission Charges* Project/Operation Management Services Revenue from Power supply -Asset Under Finance Lease Income from Finance Lease Other Operating Revenue Total 6,308.01 5,904.75 403.26 6.83 125.03 128.96 (3.93) (3.05) 1,030.64 1,034.51 (3.87) (0.37) 86.70 92.32 (5.62) (6.09) 137.68 140.05 (2.37) 7,688.06 7,300.59 387.47 (1.69) 5.31 *Includes rate regulatory income/(expense) The increase in revenue was mainly due to recovery of higher fuel cost, power purchase and transmission charges. Management Discussion & Analysis I 77 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 9.2. OTHER INCOME 9.8. OPERATIONS AND OTHER EXPENSES Figures in ` crore (Table 35) Figures in ` crore (Table 41) The Tata Power Company Limited FY18 2.36 7.17 FY19 132.56 747.90 84.88 383.91 (47.68) (363.99) Change % Change (35.97) (48.67) Particulars Interest Income Dividend Income Gain/(Loss) on Investments Other Non-operating Income (44.44) Total Decrease in Other Income was mainly due to lower dividend income from subsidiaries and joint ventures and reduction in interest income on financial instruments to subsidiaries. (412.99) 516.35 929.34 (13.18) 203.81 46.52 (6.13) 40.39 4.81 9.3. COST OF POWER PURCHASED AND COST OF FUEL Particulars FY19 FY18 Change % Change Figures in ` crore (Table 36) 412.05 457.02 Cost of Power Purchased Cost of Fuel 14.11 The power purchase cost increased mainly due to increase in rate of power purchase and higher cost of fuel due to one-time impact of entry tax settlement on import of coal. 3,168.27 2,776.40 391.87 44.97 10.91 9.4. TRANSMISSION CHARGES Particulars FY19 FY18 Change % Change Figures in ` crore (Table 37) Transmission Charges Transmission charges in the Mumbai regulated business were based on the MYT order. (31.65) (11.31) 248.23 279.88 9.5. EMPLOYEE BENEFIT EXPENSES Figures in ` crore (Table 38) FY18 FY19 Particulars Employee benefit expenses Employee Benefit Expenses increased on account of annual increment. Change % Change 637.57 596.69 40.88 6.85 9.6. FINANCE COSTS Figures in ` crore (Table 39) Particulars FY19 1,500.35 Change % Change Finance Costs 4.82 Finance Cost was higher mainly due to loss funding for Mundra, working capital requirements and marginal increase in interest rates during the current year. 68.97 FY18 1,431.38 9.7. DEPRECIATION AND AMORTISATION Figures in ` crore (Table 40) Particulars FY19 FY18 Change % Change Depreciation and amortization Depreciation reduced during the year because certain old assets reached their residual value. (30.51) 632.70 663.21 (4.60) 78 I Management Discussion & Analysis Particulars FY19 FY18 Change % Change Repairs and Maintenance Others 285.93 515.94 297.12 (11.91) (3.77) 580.40 (64.46) (11.11) Total Operation and Other Expenses 801.87 877.52 (75.65) (8.62) Operations and Other Expenses reduced mainly due to reduction in consultancy fees, rates & taxes, legal charges and cost of service procured. 9.9. EXCEPTIONAL ITEMS Figures in ` crore (Table 42) Particulars FY19 FY18 Change % Change Impairment of Property, Plant & Equipment Impairment of Non-current Investments Damages Towards Contractual Obligation Nil (100.00) 100.00 (100.00) Nil (4,230.32) 4,230.32 (100.00) Nil (107.08) 107.08 (100.00) Provision for contingencies (45.00) Gain on sale of Investment in Associate 1,212.99 Nil Nil (45.00) 100.00 1,212.99 100.00 1,167.99 (4,437.40) 5,605.39 (126.32) Total In FY19, the Company sold its investment in associate companies viz. Tata Communications Limited (TCL) and Panatone Finvest Limited (PFL). The resultant gain was accounted for as an exceptional item net of provision for contingencies towards entry tax. During FY18, the Company recognised impairment provision for one of the units of its Trombay generating station, investment in subsidiaries and joint ventures. The Company also accounted loss towards contractual obligations towards purchase of shares in TTSL from NTT DoCoMo Inc., Japan. for 9.10. TAX EXPENSES Figures in ` crore (Table 43) % Change (23.75) 139.27 Particulars FY19 FY18 Change 10 Nil 10.00 100.00 (420.61) 171.00 331.58 224.26 (844.37) (53.26) 1,175.95 Current Tax Deferred Tax Deferred Tax relating to earlier Year Deferred Tax (Recoverable)/ Payable Total Tax Expenses 155.46 91.97 In FY18, there was a higher deferred tax credit on account of recognition of MAT credit pertaining to earlier years and recognition of deferred tax asset on provision for diminution of investment. MAT credit pertaining to regulated business was recorded as liability, and hence higher payable in FY18. During the year, the deferred tax charge has increased 454.29 (165.82) (192.59) (874.90) 257.79 100th Annual Report 2018-19 on account of profit on sale of investment recognized as exceptional income. During the year, MERC approved the extension of PPA for generation plants. Consequently, deferred tax liability expected to be recovered has been recognized as a recoverable from consumers. 9.11. PROPERTY, PLANT AND EQUIPMENT, INVESTMENT PROPERTY & INTANGIBLE ASSETS Figures in ` crore (Table 44) Particulars FY19 FY18 Change % Change Property, plant and equipment Intangible Assets Capital Work-in-Progress Total 7,545.96 7,873.55 (327.59) (4.16) 83.89 368.10 7,997.95 93.18 418.78 (9.29) (50.68) 8,385.51 (387.56) (9.97) (12.10) (4.62) The above assets decreased mainly due to depreciation and amortisation for FY19 offset by capitalisation during the year. 9.12. NON-CURRENT INVESTMENTS 9.15. LOANS Figures in ` crore (Table 48) Particulars FY19 FY18 Change Non-current Current Total 51.35 119.20 170.55 (17.55) 68.90 402.92 (283.72) 471.82 (301.27) % Change (25.47) (70.42) (63.85) Reduction in loans was mainly due to liquidation of loans given to related parties. 9.16. FINANCE LEASE RECEIVABLE Figures in ` crore (Table 49) FY18 FY19 Change Particulars % Change (3.56) Non-current 9.66 Current Total (2.82) Finance Lease Receivable reduced due to recovery of lease rentals during the year. (20.49) 3.31 (17.18) 554.27 37.58 591.85 574.76 34.27 609.03 Figures in ` crore (Table 45) 9.17. OTHER FINANCIAL ASSETS Particulars FY19 FY18 Change % Change Investment in Subsidiary, JV and Associate Statutory Investments Others Total 20,476.72 17,571.48 2,905.24 16.53 374.40 419.65 (17.09) 0.17 21,270.77 18,382.45 2,888.32 391.49 419.48 (4.37) 0.04 15.71 Non-Current Investments increased mainly due to increase in investments exposure in subsidiaries. Particulars Non-current Current Total Figures in ` crore (Table 50) FY19 2.89 96.06 98.95 FY18 Change 2.89 Nil 297.78 (201.72) 297.78 (198.83) % Change 100.00 (67.74) (66.77) Other Financial Assets reduced mainly due to reduction in dividend and interest receivable from subsidiaries and joint ventures. 9.13. CURRENT INVESTMENTS 9.18. OTHER ASSETS Figures in ` crore (Table 46) Figures in ` crore (Table 51) Particulars FY19 FY18 Change % Change Contingency Reserve Fund Investments Deferred Tax Liability Fund Investment Total Nil 10.00 (10.00) (100.00) 42.00 42.00 0.00 42.00 100.00 10.00 32.00 320.00 Current Investments consisting of statutory investments increased mainly due to reclassification from non-current to current. 9.14. TRADE RECEIVABLES Figures in ` crore (Table 47) Particulars FY19 FY18 Change Non-current Current Total 185.76 185.76 Nil 1,256.44 972.05 1,442.20 1,157.81 284.39 284.39 % Change Nil 29.26 24.56 Increase in Trade Receivables was mainly due to increase in receivable from BEST in the Mumbai operation area. Particulars FY19 FY18 Change Non-current Current Total 977.10 1,235.70 309.25 952.11 1,929.21 1,544.95 (258.60) 642.86 384.26 % Change (20.93) 207.88 24.87 Other Assets recoverable from consumers. increased mainly due to increase in 9.19. ASSETS CLASSIFIED AS HELD FOR SALE Figures in ` crore (Table 52) Particulars FY19 FY18 Change Land Building Property, Plant and Equipment Investments Loan and interest accrued Assets of Discontinued Operations Total % Change 218.89 100.00 212.78 9.75 4.33 1968.18 309.99 9.75 4.55 97.21 Nil 0.22 399.41 18.59 1,098.52 (699.11) 18.59 Nil 2,064.30 2,065.19 (0.89) 2,806.59 3,261.14 (454.55) (63.64) 100.00 (0.04) (13.94) Management Discussion & Analysis I 79 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S In FY18, the Company treated certain investments in associates as held for sale which were sold in FY19. Further, certain fixed assets and the investment in overseas hydro and renewable projects, during the year, have been classified as assets held for sale. 9.20. NON-CURRENT BORROWINGS The Tata Power Company Limited Other Liabilities increased mainly due to reduction in liabilities towards consumers. 9.25. LIABILITIES DIRECTLY ASSOCIATED WITH ASSETS CLASSIFIED AS HELD FOR SALE Figures in ` crore (Table 58) Figures in ` crore (Table 53) Particulars FY19 FY18 Change % Change Particulars FY19 FY18 Change Secured Loans 4,895.95 4,122.03 773.92 Unsecured Loans Total 3,853.77 8,749.72 4,001.81 8,123.84 (148.04) 625.88 % Change 18.78 (3.70) 7.70 Non-current borrowings increased mainly due to increased funding requirements of subsidiaries. Liabilities classified as held for sale Total 966.27 966.27 877.56 877.56 88.71 88.71 10.11 10.11 liabilities increased mainly due to The in borrowings. Also, the SED business was classified as ‘Discontinued Operations’, and, accordingly, assets and liabilities were classified as held for sale. increase 9.26. TOTAL EQUITY 9.21. CURRENT BORROWINGS Figures in ` crore (Table 59) Figures in ` crore (Table 54) Particulars FY19 FY18 Change % Change Secured Loans Unsecured Loans Total Nil 0.01 (0.01) (100.00) 6,731.80 6,731.80 2,405.35 4,326.45 4,326.46 2,405.34 55.60 55.60 During the year, Current Borrowings increased mainly due to increased issuance of Commercial Papers for optimisation of funding cost. 9.22. TRADE PAYABLES Figures in ` crore (Table 55) Particulars FY19 FY18 Change Non-current Current Total 22.75 21.00 1,102.14 1,124.89 1,105.68 1,126.68 1.75 (3.54) (1.79) % Change 8.33 (0.32) (0.16) Trade payables decreased marginally during the year. 9.23. OTHER FINANCIAL LIABILITIES Figures in ` crore (Table 56) Particulars FY19 FY18 Change % Change Particulars FY19 FY18 Change Equity Share Capital 270.50 270.50 Unsecured Perpetual Securities 1,500.00 1,500.00 Nil Nil Other Equity Total Equity 1,201.07 12,718.03 13,919.10 15,689.60 14,488.53 1,201.07 % Change Nil Nil 9.44 8.29 Total Equity of the Company increased with profits of the year net of distribution on perpetual securities and dividend pay-out. 9.27. REGULATORY DEFERRAL ACCOUNT – ASSET/ (LIABILITY) Figures in ` crore (Table 60) Particulars FY19 FY18 Change % Change 999.00 (44.35) (796.19) 1,795.19 Regulatory Deferral - Asset Less: Regulatory Deferral – Liability Total Regulatory Deferral - Asset (Net) Regulatory Deferral Asset (Net) pertains to regulatory receivables in the distribution business. The same reduced on account of recovery during the year. 1,310.19 (311.19) (485.00) (100.00) (23.75) 999.00 485.00 Nil 42.76 44.74 (1.98) (4.43) 10. FINANCIAL PERFORMANCE – CONSOLIDATED Non-current Current Total 2,895.43 2,938.19 5,047.98 (2,152.55) 5,092.72 (2,154.53) (42.64) (42.31) Other Financial Liabilities decreased mainly due to reduction in current maturity of non-current borrowings. 9.24. OTHER LIABILITIES Figures in ` crore (Table 57) Particulars FY19 FY18 Change Non-current Current Total 183.54 849.12 1,032.66 246.49 1,193.59 1,440.08 (62.95) (344.47) (407.42) % Change (25.54) (28.86) (28.29) 80 I Management Discussion & Analysis Figures in ` crore (Table 61) Particulars FY19 FY18 Change 29,888.54 26,863.11 3,025.43 % Change 11.26 Total Income* Depreciation/ Amortisation/ Impairment Finance Costs Exceptional Item Profit Before Taxes Profit for the year 2,393.13 2,346.17 46.96 2.00 4,170.00 1,745.83 3,222.34 2,440.41 408.52 3,761.48 643.30 1,102.53 2,844.56 377.78 2,610.85 (170.44) 10.86 58.35 13.28 (6.53) *Includes Regulatory Income/(Expenses) 100th Annual Report 2018-19 increased increased marginally with Increase in Total Income was primarily on account of higher revenue in Tata Power, TPDDL, TPREL and CGPL. increased Depreciation in capitalization. Finance costs were higher mainly CGPL, TPCL and TPREL due to funding requirements. Exceptional items in FY19 included gain on sale of investments in associates offset by provision for contingencies related to entry tax provision and impairment of plant, property and equipment in Rithala plant. Exceptional items in FY18 included impairment provisions of the investment made in overseas hydro project, impairment provisions of a unit in Trombay generating station, reversal of impairment provisions in Coal companies and loss towards contractual obligation for purchase of shares in TTSL from NTT DoCoMo Inc., Japan. 10.1. PROPERTY, PLANT AND EQUIPMENT, INVESTMENT PROPERTY & INTANGIBLE ASSETS Figures in ` crore (Table 62) Particulars FY19 FY18 Change % Change Property, plant and equipment 41,101.50 41,431.61 (330.11) (0.80) Intangible Assets 1,561.82 1,583.08 (21.26) (1.34) Capital Work-in-Progress 2,575.70 1,652.60 923.10 55.86 Profit 45,239.02 44,667.29 571.73 1.28 The above assets increased mainly due to capex in TPCL, TPDDL and TPREL offset by depreciation and amortisation for FY19 and assets reclassified as held for sale. 10.2. GOODWILL Figures in ` crore (Table 63) Particulars FY19 FY18 Change % Change Goodwill 1,641.57 1,641.57 Nil Nil There is no change in goodwill during the year. 10.3. NON-CURRENT INVESTMENTS Figures in ` crore (Table 64) Particulars FY19 FY18 Change % Change Investment in Associates and Joint Ventures 11,989.69 11,111.66 878.03 7.90 10.4. CURRENT INVESTMENTS Figures in ` crore (Table 65) Particulars FY19 FY18 Change % Change Investments carried at Amortised Cost Investments carried at FVTPL Total 42.00 10.00 32.00 320.00 124.98 426.16 (301.18) (70.67) 166.98 436.16 (269.18) (61.72) Decrease in Current Investments was mainly on account of liquidation of investment in mutual funds offset by increase in Statutory Investments due to reclassification from non-current to current. 10.5. TRADE RECEIVABLES Figures in ` crore (Table 66) Particulars FY19 FY18 Change Non-current 192.99 190.05 2.94 Current Total 4,445.26 1,656.33 2,788.93 4,638.25 2,978.98 1,659.27 % Change 1.55 59.39 55.70 Increase in Trade Receivables was mainly due to increase in receivables in Tata Power, CGPL, TPTCL and TPIPL. 10.6. LOANS Figures in ` crore (Table 67) Particulars FY19 FY18 Change % Change Non-current Current Total 144.73 116.46 261.19 131.73 784.80 916.53 13.00 9.87 (668.34) (85.16) (655.34) (71.50) Loans decreased mainly due to repayment of loans in Bhira Investments and Khopoli Investments, which was offset by increase in loan for TPIPL. 10.7. FINANCE LEASE RECEIVABLE Figures in ` crore (Table 68) Particulars FY19 FY18 Change Non-current Current Total 565.62 37.90 603.52 574.76 34.27 609.03 (9.14) 3.63 (5.51) % Change (1.59) 10.59 (0.90) Finance Lease Receivable reduced due to recovery of lease rentals during the year. Statutory Investments 374.40 391.49 (17.09) (4.37) 10.8. OTHER FINANCIAL ASSETS Others Total 487.01 489.62 (2.61) (0.53) 12,851.10 11,992.77 858.33 7.16 The increase in Non-Current Investments was mainly due to increase in joint ventures by way of booking of profit for the year net of dividend received offset by reclassification of overseas investment to Assets held for sale. Figures in ` crore (Table 69) Particulars FY19 FY18 Change Non-current Current Total 316.75 241.59 558.34 273.68 401.59 675.27 43.07 (160.00) (116.93) % Change 15.74 (39.84) (17.32) Management Discussion & Analysis I 81 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Other Financial Assets reduced mainly due to reduction in fair valuation gain on derivative contracts and other advances. 10.9. OTHER ASSETS Figures in ` crore (Table 70) Particulars FY19 FY18 Change Non-current Current Total 1,358.07 1,881.85 3,239.92 1,577.31 1,512.32 3,089.63 (219.24) 369.53 150.29 % Change (13.90) 24.43 4.86 Other Assets in increased mainly due to recoverable from consumers in MPL and Tata Power offset by decrease in power banking receivables of TPDDL. increase 10.10. NON-CURRENT BORROWINGS Figures in ` crore (Table 71) Particulars FY19 FY18 Change Secured Loans 20,084.57 12,397.71 7,686.86 Unsecured Loans Total 11,054.66 1,096.06 9,958.60 31,139.23 22,356.31 8,782.92 % Change 62.00 11.00 39.29 Non-Current Borrowings increased mainly due to increase in loan for Tata Power, TPREL, Khopoli Investments and reclassification of short term borrowings into long term borrowings in CGPL which was partially offset by decrease in borrowings for MPL and Bhira Investments. 10.11. CURRENT BORROWINGS The Tata Power Company Limited 10.13. OTHER FINANCIAL LIABILITIES Figures in ` crore (Table 74) Particulars Non-current Current Total FY18 FY19 40.00 647.31 687.31 (3,462.19) 9,942.98 6,480.79 7,168.10 10,590.29 (3,422.19) Change % Change 6.18 (34.82) (32.31) Other Financial Liabilities decreased mainly due to reduction in payables for capital supplies, derivative contracts and regulatory liabilities. 10.14. OTHER LIABILITIES Figures in ` crore (Table 75) Particulars FY19 FY18 Change Non-current 1,873.75 1,841.48 32.27 Current Total 1,499.64 (286.08) 1,785.72 3,373.39 3,627.20 (253.81) % Change 1.75 (16.02) (7.00) Other Liabilities decreased mainly due to reduction in liability towards consumers offset by increase in Deferred Revenue Liability under Ind AS 115. 10.15. TOTAL EQUITY Figures in ` crore (Table 76) Particulars FY19 FY18 Change % Change Equity Share Capital 270.50 270.50 Unsecured Perpetual Securities 1,500.00 1,500.00 Nil Nil Nil Nil Figures in ` crore (Table 72) Other Equity 16,450.66 14,629.38 1,821.28 12.45 Particulars FY19 FY18 Change % Change Secured Loans 895.62 5,378.45 (4,482.83) (83.35) Unsecured Loans Total 12,979.76 13,448.83 (469.07) 13,875.38 18,827.28 (4,951.90) (3.49) (26.30) Current Borrowings decreased mainly due to decrease of loan in Khopoli Investments, WREL and reclassification of short term borrowings into long term borrowings in CGPL which was partially offset by increase in short term borrowings in MPL, TPREL, Bhira Investments and TPTCL. 11. 10.12. TRADE PAYABLES Figures in ` crore (Table 73) Particulars FY19 FY18 Change % Change Non-current 22.75 21.00 1.75 Current Total 5,481.49 5,609.82 (128.33) 5,504.24 5,630.82 (126.58) 8.33 (2.29) (2.25) Trade Payables decreased mainly in TERPL and CGPL offset by increase in TPDDL, Tata Power, Khopoli Investments and TPTCL. 82 I Management Discussion & Analysis Total Equity attributable to shareholders of the Company 18,221.16 16,399.88 1,821.28 11.11 Total Equity of the Company increased by 11% during the year mainly on account of profits for the year net of distribution on perpetual securities and dividend pay-out. Refer notes to the standalone/consolidated financial statements for the restatements in the previous period. INTERNAL MANAGEMENT FINANCIAL CONTROLS AND RISK 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 section 10 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. 100th Annual Report 2018-19 Company’s Philosophy on Corporate Governance Board of Directors REPORT 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. Further, these codes allow the Board to make decisions that are independent of the management. 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, directors’ term, retirement age and mandates of Board Committees. It also covers aspects relating to nomination, appointment, induction and development of directors, directors’ remuneration, subsidiary oversight and Board effectiveness review. These guidelines ensure that the Board will have the necessary authority and processes to review and evaluate its operations, when required. 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), as amended from time to time, the disclosure requirements of which are detailed herein. The Board is the focal point and custodian of corporate governance for the Company. The Company recognizes and embraces the benefits of having a diverse Board and sees increasing diversity at Board level as an essential element in maintaining a competitive advantage. A truly diverse Board will include and make good use of differences in the skills, regional and industry experience, background, gender and other distinctions between directors. These differences will be considered in determining the optimum composition of the Board and when possible, will be balanced appropriately. The size and composition of the Board as on 31st March 2019 is as under: Table 1 50 % Size and composition of the Board Independent Directors (including two Women Directors) Nominee Director Non-Executive, Non-Independent Directors Executive Directors 6 8% 1 3 2 25% 17% % to total number of Directors Number of Directors The composition of the Board is in compliance with the requirements of the Companies Act, 2013 (Act) and Regulation 17 of the Listing Regulations. The profile of the Directors can be accessed on the Company’s website at https://www.tatapower. com/corporate/board-of-directors.aspx. The Company requires skills/expertise/competencies in the areas of strategy, finance, accounting, economics, legal and regulatory matters, mergers and acquisitions, the environment, green technologies, sustainability, operations of the Company’s businesses and energy commodity markets to efficiently carry on its core businesses such as generation, distribution and transmission of thermal/renewables/hydro power, power trading, power services, solar photovoltaic (PV) manufacturing and associated engineering, procurement and construction (EPC) services, coal mines and logistics. All the above required skills/expertise/competencies are available with the Board. Report on Corporate Governance I 83 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Board is satisfied that the current composition reflects an appropriate mix of knowledge, skills, experience, expertise, diversity and independence. The Board provides leadership, strategic guidance, an objective and 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 details of each member of the Board as on 31st March 2019, are provided herein below: The Tata Power Company Limited Sl. No. Name of the Director Category of Directorship No. of other Directorships(1) No. of Committee positions held(2) Chairperson Member No. of shares held in the Company 1. Mr. N. Chandrasekaran, Chairman Non- Independent, Non- Executive 5 Nil Nil Nil Table 2 Directorship in other listed entities (category of directorship) Tata Consultancy Services Limited (Non-Independent, Non-Executive) Tata Steel Limited (Non-Independent, Non-Executive) Tata Motors Limited (Non-Independent, Non-Executive) The Indian Hotels Company Limited (Non-Independent, Non-Executive) Tata Global Beverages Limited (Non-Independent, Non-Executive) Thermax Limited (Independent, Non-Executive) Exide Industries Limited (Independent, Non-Executive) Coastal Gujarat Power Limited (Independent, Non-Executive) Tata Power Renewable Energy Limited (Independent, Non-Executive) Piramal Capital & Housing Finance Limited (Independent, Non-Executive) Piramal Enterprises Limited (Independent, Non-Executive) Asian Paints Limited (Independent, Non-Executive) Tata Power Renewable Energy Limited (Independent, Non-Executive) Apollo Tyres Limited (Independent, Non-Executive) Voltas Limited (Independent, Non-Executive) Bata India Limited (Independent, Non-Executive) GlaxoSmithKline Pharmaceuticals Limited (Independent, Non-Executive) Nil Nil Nil Nil HDFC Life Insurance Company Limited (Managing Director & CEO) 16,262 (As a joint holder) HDFC Asset Management Company Limited (Independent, Non-Executive) S Chand and Company Limited (Independent, Non-Executive) Walwhan Renewable Energy Limited (Independent, Non-Executive) Tata Power Renewable Energy Limited (Independent, Non-Executive) Nil Nil 2. Mr. Nawshir H. Mirza 3. Mr. Deepak M. Satwalekar 4. Ms. Anjali Bansal 5. Ms. Vibha Padalkar 6. Mr. Sanjay V. Bhandarkar 7. Mr. K. M. Chandrasekhar Independent, Non- Executive 5 3 7 3 6 1 1 1 0 1 4 0 4 0 1 2 4 1 84 I Report on Corporate Governance 100th Annual Report 2018-19 Sl. No. Name of the Director Category of Directorship No. of other Directorships(1) No. of Committee positions held(2) Chairperson Member No. of shares held in the Company Directorship in other listed entities (category of directorship) 8 6 7 4 5 8. Mr. Hemant Bhargava (Nominee of Life Insurance Corporation of India (LIC) as an equity investor) 9. Mr. Saurabh Agrawal Non- Independent, Non- Executive 10. Mr. Banmali Agrawala 11. Mr. Praveer Sinha, CEO & Managing Director (w.e.f. 1.05.2018) 12. Mr. Ashok S. Sethi,(3) COO & Executive Director Notes: Executive 0 1 Nil Voltas Limited (Nominee Director) Larsen & Toubro Limited (Nominee Director) ITC Limited (Nominee Director) LIC Housing Finance Limited (Nominee Director) 1 1 0 0 2 0 0 0 Nil Tata Teleservices (Maharashtra) Limited (Non-Independent, Non-Executive) Tata Steel Limited (Non-Independent, Non-Executive) Tata AIG General Insurance Company Limited (Non-Independent, Non-Executive) Nil Tata Power Renewable Energy Limited (Non-Independent, Non-Executive) Nil Nil 20,600 Maithon Power Limited (Non-Independent, Non-Executive) Walwhan Renewable Energy Limited (Non-Independent, Non-Executive) Coastal Gujarat Power Limited (Non-Independent, Non-Executive) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) There are no inter se relationships between the Board members. (1)Excludes directorship in Tata Power, and directorships in private companies (including deemed public company), foreign companies, bodies corporate and companies under Section 8 of the Act. (2)Pertains to membership/chairmanship of the Audit Committee and Stakeholders Relationship Committee of Indian public companies (excluding Tata Power). (3)Mr. Ashok S. Sethi superannuated as COO & Executive Director of the Company effective close of business hours on 30th April 2019. Consequently, he has also resigned from the Boards of Maithon Power Limited, Walwhan Renewable Energy Limited and Coastal Gujarat Power Limited. None of the Directors held directorship in more than 8 listed companies. Further, none of the Independent Director (ID) of the Company served as an ID in more than 7 listed companies. (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) None of the Directors held directorship in more than 20 Indian companies, with not more than 10 public limited companies. None of the Directors is a member of more than 10 committees or chairperson of more than 5 committees across all the public limited companies in which he/she is a Director. As per Listing Regulations, only memberships of Audit Committee and Stakeholders Relationship Committee have been taken into consideration for the purpose of ascertaining the limit. Mr. Praveer Sinha, CEO & Managing Director is not an Independent Director of any other listed company. All IDs of the Company have been appointed as per the provisions of the Act and Listing Regulations. Formal letters of appointment have been issued to the IDs. In the opinion of the Board, the IDs are independent of the management. The Chairman of the Company is a Non-Executive Director (NED) and not related to the CEO & Managing Director. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Report on Corporate Governance I 85 The Tata Power Company Limited Changes in Board composition Changes in Board composition during FY19 and upto the date of this report, are tabled below: Sl. No. Name of the Director Nature of change Mr. Anil Sardana Resigned as a CEO & Managing Director of the Company Mr. Praveer Sinha Appointed as a CEO & Managing Director of the Company Mr. Ashok S. Sethi Superannuated as COO & Executive Director of the Company Mr. Ashok Sinha Appointed as Additional and Independent Director 1. 2. 3. 4. Note: Table 3 Date of change 30th April 2018 1st May 2018 30th April 2019 2nd May 2019 None of the Independent Directors have resigned before the expiry of their respective tenures during FY19. Term of Board membership Board Procedure 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 existing guidelines, the retirement age for Managing/Executive Directors (EDs) is 65 years, NEDs is 70 years and IDs is 75 years. Selection and appointment of new directors The Board is responsible for the appointment of new directors. The Board has delegated the screening and selection process for new directors to the NRC. Considering the existing composition of the Board and requirement of new domain expertise, if any, the NRC reviews 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. Potential IDs are also assessed on the basis of independence criteria defined in Section 149(6) of the Act read with Rules framed thereunder 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 an Additional Director, whose appointment is subject to approval of the Members at the Company’s general meeting. Letter of appointment issued to Independent Directors The IDs on the Board of the Company 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 IDs are available on the Company’s website at http://www.tatapower.com/corporate/ board-of-directors.apx. Meetings Schedule, Agenda and participation thereat: The Board/Committee meetings are pre-scheduled and a tentative annual calendar of the Board and Committee meetings is circulated to the Directors well in advance to help them plan their schedule and ensure meaningful participation in the meetings. The Company Secretary, in consultation with the Chairman, drafts the agenda for meetings, along with notes and the same is made available at least seven days in advance to all the Directors for facilitating fruitful and focused discussions at the meeting. Video/tele conferencing facilities are also used to facilitate Directors travelling or present at other locations, to participate in meetings. Only in case of urgent business, if the need arises, the Board’s/ Committee’s approval is taken by passing resolutions through circulation or by calling Board/Committee meetings at short notice, as permitted by law. Paperless Board Meetings: With a view to leverage technology and reducing paper consumption, the Company has adopted a digital application for transmitting Board/Committee agenda notes. The Directors of the Company receive the agenda notes in electronic form through this application, which is accessible through iPad. The application meets high standards of security that are essential for storage and transmission of sensitive information in electronic form. Post meeting follow-up mechanism: The Company has an effective post Board/Committee Meeting follow-up procedure. 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/Committees for information and further recommended action(s), if any. Knowledge sharing: Board members are kept informed about any material development/business update through various modes viz. e-mails, telecon, etc. from time to time. Compliance Reports: The Board periodically reviews the compliance report of the laws applicable to the Company as well as steps taken by the Company to rectify the instances of non- compliance, if any. 86 I Report on Corporate Governance 100th Annual Report 2018-19 Board Meeting Seven Board meetings were held during the year under review and the gap between two meetings did not exceed 120 days. Attendance of directors at Annual General Meeting (AGM) and Board Meetings during FY19 Name of the Director Mr. N. Chandrasekaran, Chairman Mr. Nawshir H. Mirza Mr. Deepak M. Satwalekar Ms. Anjali Bansal Ms. Vibha Padalkar Mr. Sanjay V. Bhandarkar Mr. K. M. Chandrasekhar Mr. Hemant Bhargava Mr. Saurabh Agrawal Mr. Banmali Agrawala Mr. Praveer Sinha, CEO & Managing Director Mr. Ashok S. Sethi, COO & Executive Director Attendance at AGM held on 27th July 2018 Number of Board Meetings held 02.05.18 26.07.18 29.10.18 28.01.19 01.02.19 11.03.19 25.03.19 Table 4 % of attendance at Board Meetings (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) (cid:34) — (cid:34) (cid:34) (cid:34) (cid:34) 100 86 100 86 71 100 100 43 100 100 100 100 (cid:34)(cid:3)Attended in person/through video conference — Leave of absence Attended through audio conference (not counted for quorum and for % of attendance) Information provided to the Board The Board has unrestricted access to all Company-related information. At Board/Committee meetings, departmental 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, as deemed appropriate: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) 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, outlook, capital budget of the Company. future Minutes of meetings of committees of the Board. Subsidiary companies’ minutes, financial statements and significant transactions and investments. The information on recruitment and removal and remuneration of senior officers just below the Board level, including Chief Financial Officer and Company Secretary. Significant regulatory matters concerning Indian or foreign regulatory authorities. (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) 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 towards 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 services provided/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 or delays in share transfer, if any. Report on Corporate Governance I 87 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Meeting of Independent Directors During the year under review, a separate meeting of the Independent Directors was held on 25th March 2019. At the said meeting, the Independent Directors reviewed the performance of Non-Independent Directors, the Board as a whole and the Chairman after taking into account the views of the EDs and NEDs. They also assessed the quality, quantity and timeliness of flow of information between the Company’s management and the Board. Annual Strategy Board Meet An Annual Strategy Board meet was organised on 1st February 2019. As a part of the agenda, the Board conducted a strategy review of the Company’s business segments, future growth, risk orientation and resource optimization. Further discussions on strategy were also held in the Board meeting held on 25th March 2019. 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 proactively 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. In addition to the above, the Company has an exclusive internal web-based information portal, which is made available to all the Directors. This has sections on Company matters, Laws & Regulations, Sustainability aspects, Company’s quarterly progress in various operating units, projects under construction, etc. Details of the familiarization program on cumulative basis are available on the Company’s website at https://www.tatapower. com/pdf/investor-relations/familiarisation-programme-for- directors.pdf. 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 Company has also adopted a Code of Conduct for all its employees including Executive Director(s). 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 and marked as Annexure I. Tata Code of Conduct for Prevention of Insider Trading & Code of Corporate Disclosure Practices The Tata Power Company Limited Insider Trading and Code of Corporate Disclosure Practices (the Code). All the Promoters, Directors, Employees of the Company and its material subsidiaries, who are Designated Persons, and their Immediate Relatives and other Connected Persons such as auditors, consultants, bankers, etc., who could have access to the unpublished price sensitive information of the Company, are governed under this Code. Mr. Ramesh N. Subramanyam, Chief Financial Officer (CFO) of the Company is the ‘Compliance Officer’ in terms of this Code. Remuneration to Directors Details of remuneration to NEDs during and for the year under review: Name of the Director Sl. No. Table 5 (Gross Amount in `) Sitting Fees paid during FY19 Commission for FY19* 1. Mr. N. Chandrasekaran,$ 3,00,000 0 Chairman 2. Mr. Nawshir H. Mirza 4,80,000 70,00,000 3. Mr. Deepak M. Satwalekar 5,40,000 65,00,000 4. Ms. Anjali Bansal 4,20,000 50,00,000 5. Ms. Vibha Padalkar 4,50,000 50,00,000 6. Mr. Sanjay V. Bhandarkar 5,40,000 55,00,000 7. Mr. K. M. Chandrasekhar 3,60,000 40,00,000 8. Mr. Hemant Bhargava@ 90,000 20,00,000 9. Mr. Saurabh Agrawal# 10. Mr. Banmali Agrawala# 4,20,000 3,90,000 0 0 Notes: * Commission relates to the financial year ended 31st March 2019, which was approved by the Board on 2nd May 2019, to be paid during FY20. $ As a policy, Mr. N. Chandrasekaran has abstained from receiving Commission from the Company. @ Sitting fees for attending meetings and the Commission is paid to LIC on account of Mr. Hemant Bhargava, being nominee of LIC. # In the line with internal guidelines, no payment is made towards Commission to Mr. Saurabh Agrawal and Mr. Banmali Agrawala, NEDs of the Company, who are in full-time employment with another Tata company. In accordance with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended from time to time, the Board of Directors of the Company has adopted the revised Tata Code of Conduct for Prevention of The NEDs are paid remuneration by way of Commission and Sitting Fees. The distribution of Commission, if applicable, amongst the NEDs is recommended by the NRC and approved by the Board. The Commission payment for the financial year ended 31st March 88 I Report on Corporate Governance 100th Annual Report 2018-19 2019 was distributed based on the Company’s performance and keeping in mind the attendance of Directors at Board and Committee meetings and their contribution at these meetings. None of the NEDs had any pecuniary relationship or transactions with the Company other than the Directors’ sitting fees and commission, as applicable, received by them. The Company reimburses out-of-pocket expenses, if any, incurred by the Directors for attending meetings. Details of remuneration and perquisites paid and/or value calculated as per the Income-tax Act, 1961 to the CEO & Managing Director and COO & Executive Director during FY19: (Gross Amount in ₹) Table 6 Sl. No. Name of the Director Salary & allowances Commission for FY19@ Perquisites & Benefits Retirement Benefits Total 1. 2. 3. Mr. Anil Sardana* CEO & Managing Director Mr. Praveer Sinha CEO & Managing Director& Mr. Ashok S. Sethi# COO & Executive Director 68,59,799 N.A. 10,398 1,33,00,936 2,01,71,133 1,68,95,342 2,50,00,000 3,32,613 22,27,500 4,44,55,455 1,85,73,500 2,25,00,000 1,29,754 8,71,200 4,20,74,454 TOTAL 4,23,28,641 4,75,00,000 4,72,765 1,63,99,636 10,67,01,042 Notes: @ Commission (variable component) relates to the financial year ended 31st March 2019, which was approved by the Board on 2nd May 2019, to be paid during FY20. * Mr. Sardana resigned as CEO & Managing Director of the Company with effect from close of business hours on 30th April 2018. & Mr. Sinha was appointed as CEO and Managing Director of the Company effective 1st May 2018. # Mr. Sethi superannuated as COO & Executive Director of the Company with effect from close of business hours on 30th April 2019. Salient features of the agreements executed by the Company with Mr. Sardana, Mr. Sinha and Mr. Sethi: Terms of Agreement Period of appointment Remuneration Mr. Anil Sardana CEO & Managing Director Mr. Sardana resigned with effect from 30th April 2018 Basic salary upto a maximum of ₹ 14,00,000 p.m. Table 7 Mr. Praveer Sinha CEO & Managing Director Mr. Ashok S. Sethi COO & Executive Director 01.05.2018 to 30.04.2023 01.04.2017 to 30.04.2019 Basic salary upto a maximum of ₹ 15,00,000 p.m. Basic salary upto a maximum of ₹ 7,00,000 p.m. Commission Within the limits stipulated under the Act. Incentive Remuneration Not exceeding 200% of basic salary. Benefits, perquisites and allowances (excluding Company’s contribution to Provident Fund, Superannuation, Gratuity, Leave Encashment) 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 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Report on Corporate Governance I 89 Board Committees The Committees constituted by the Board focus on specific areas and take informed decisions within the framework designed by the Board, and make specific recommendations to the Board on matters in their areas or purview. All decisions and recommendations of the Committees are placed before the Board for information or for approval, as required. To enable better and more focused attention on the affairs of the Company, the Board has delegated particular matters to the Committees of the Board set up for the purpose. (cid:153)(cid:3) Statutory Committees The Board has constituted the following statutory Committees as on 31st March 2019: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Audit Committee of Directors (AC) Nomination and Remuneration Committee (NRC) Corporate Social Responsibility Committee (CSR) Stakeholders Relationship Committee (SRC) Risk Management Committee (RMC) Audit Committee of Directors The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) (cid:120) Mr. Nawshir H. Mirza, Chairman Ms. Vibha Padalkar Mr. Sanjay V. Bhandarkar Mr. Saurabh Agrawal All members are financially literate and bring in expertise in the fields of finance, accounting, development, strategy and management. The Committee met 5 times during the year under review. These meetings were held on 30th April 2018, 25th July 2018, 26th October 2018, 25th January 2019 and 20th March 2019, with the requisite quorum. The attendance details of meetings of this Committee are as follows: Name of the Director No. of Meetings held during tenure No. of Meetings attended Table 8 % of Attendance (A) (B) (B/A) Mr. Nawshir H. Mirza Ms. Vibha Padalkar Mr. Sanjay V. Bhandarkar Mr. Saurabh Agrawal 5 5 5 5 5 5 5 4 100 100 100 80 90 I Report on Corporate Governance The Tata Power Company Limited The CFO assists the Committee in discharge of its responsibilities. The Committee invites such employees or advisors as it considers appropriate to attend the meetings. The CFO, the head of internal audit and Statutory Auditors are generally invited to attend all meetings unless the Committee considers otherwise. The Company Secretary acts as the Secretary of the Committee. The Internal Auditors 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. The Board has approved the charter of the Audit Committee defining inter alia its composition, role, responsibilities, powers and processes. The Charter is available on the Company’s Website https://www.tatapower.com/pdf/aboutus/charter-of-audit- at committee.pdf. The terms of the charter broadly include: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Overseeing the processes that ensure the integrity of financial statements. Overseeing the adequacy and effectiveness of the processes and controls for compliance with laws and regulations. Overseeing the adequacy and effectiveness of the process by which confidential or anonymous complaints or information regarding financial or commercial matters are received and acted upon. This includes the protection of whistle-blowers from victimization and the provision of access by whistle-blowers to the Chairman of the Committee. Approving/modifying parties. the transactions with related Enquiring into reasons for any default by the Company in honouring its obligations to its creditors and members. Overseeing the quality of internal accounting controls and other controls. Overseeing the system for storage (including back-up). Overseeing the quality of the financial reporting process, including the selection of the most appropriate of permitted accounting policies. Ensuring the independence of the auditor. Recommending to the Board the appointment and remuneration of the auditors (including secretarial and cost auditors). Framing of rules for the hiring of any current or former employee of the audit firm. Scrutinizing inter-corporate loans and investments. 100th Annual Report 2018-19 (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Monitoring the end use of funds raised through public offers. Conducting the valuation of any undertaking or asset of the Company. Overseeing the internal audit function and approve the appointment of the Chief Internal Auditor. Bringing to the notice of the Board any lacunae in the TCOC and the vigil mechanism (whistle blowing process) adopted by the Company. Reviewing with the CEO and the CFO of the Company the underlying process followed by them in their annual certification to the Board of Directors. Approving the appointment of the CFO. All the recommendations made by the Audit Committee during the year under review were accepted by the Board. Mr. Nawshir H. Mirza, Chairman of the AC, was present at the last AGM. The Board has also approved the charter of the NRC defining its composition, powers, responsibilities, reporting, evaluation, etc. The Charter is available on the Company’s website at https:// www.tatapower.com/pdf/aboutus/charter-of-nomination- remuneration-committee.pdf. The terms of the charter broadly include Board composition and succession planning, evaluation, remuneration, Board development and review of HR Strategy, Philosophy and Practices. Performance Evaluation Criteria for IDs The performance evaluation criteria for IDs is determined by the NRC. An indicative list of factors on which evaluation was carried out includes participation and contribution by the director, commitment, effective deployment of knowledge and expertise, integrity and maintenance of confidentiality and independence of behaviour and judgement. Mr. Deepak Satwalekar, Chairman of the NRC, was present at the last AGM. Corporate Social Responsibility Committee Nomination and Remuneration Committee The Committee comprises the following as on 31st March 2019: The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) Mr. Deepak M. Satwalekar, Chairman Mr. N. Chandrasekaran Ms. Anjali Bansal The Committee met 3 times during the year under review. These meetings were held on 30th April 2018, 29th October 2018, and 25th March 2019, with the requisite quorum. The attendance details of meetings of this Committee are as follows: Name of the Director No. of Meetings held during tenure No. of Meetings attended Table 9 % of Attendance (A) (B) (B/A) Mr. Deepak M. Satwalekar Mr. N. Chandrasekaran Ms. Anjali Bansal 3 3 3 3 3 3 100 100 100 In terms of the provisions of Section 178(3) of the Act and Regulation 19(4) read with Part D of Schedule II to the Listing Regulations, the Committee is responsible for inter alia 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. (cid:120) (cid:120) (cid:120) Ms. Anjali Bansal, Chairperson Mr. Deepak M. Satwalekar Mr. Praveer Sinha The Committee met 4 times during the year under review. These meetings were held on 23rd April 2018, 2nd August 2018, 26th October 2018 and 22nd March 2019, with the requisite quorum. The attendance details of meetings of this Committee are as follows: Table 10 Name of the Director No. of Meetings held during tenure No. of Meetings attended % of Attendance (A) (B) (B/A) Ms. Anjali Bansal Mr. Deepak M. Satwalekar Mr. Anil Sardana(1) Mr. Praveer Sinha(2) Notes: 4 4 1 3 4 4 1 3 100 100 100 100 (1) Consequent upon his resignation as CEO & Managing Director of the Company effective 30th April 2018, Mr. Sardana ceased to be a member of the Committee. (2) Appointed as a member of the Committee effective 1st May 2018. The Company has adopted a CSR policy which indicates the activities to be undertaken by the Company as specified in Report on Corporate Governance I 91 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Schedule VII to the Act. The policy, including overview of projects or programs proposed to be undertaken, is provided on the Company website at https://www.tatapower.com/pdf/aboutus/ csr-policy-14.pdf. Brief Terms of Reference/Roles and responsibilities: (cid:120) (cid:120) (cid:120) 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 in the rules thereto. Recommend the amount of expenditure to be incurred on the activities referred to in the above clause. Monitor the CSR Policy of the Company from time to time. Ms. Anjali Bansal, Chairperson of the CSR Committee, was present at the last AGM. Stakeholders Relationship Committee The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) Mr. Sanjay V. Bhandarkar, Chairman Mr. Banmali Agrawala Mr. Ashok S. Sethi The Committee met 2 times during the year under review. These meetings were held on 22nd October 2018 and 12th March 2019, with the requisite quorum. The attendance details of meetings of this Committee are as follows: Name of the Director No. of Meetings held during tenure No. of Meetings attended Table 11 % of Attendance (A) (B) (B/A) 2 2 2 2 2 2 100 100 100 N.A. N.A. N.A. Mr. Sanjay V. Bhandarkar Mr. Banmali Agrawala Mr. Ashok S. Sethi(1) Mr. Hemant Bhargava(2) Notes: (1) Consequent upon his superannuation as COO & Executive Director of the Company effective 30th April 2019, Mr. Sethi has ceased to be a member of the Committee. (2) Appointed as a member of the Committee effective 2nd May 2019. The Tata Power Company Limited The Committee specifically discharges duties of servicing and protecting the various aspects of interest of shareholders, debenture holders and other security holders. The Board has approved the charter of the Committee defining its composition, powers, responsibilities, etc. The charter is available on the Company’s website at https://www.tatapower.com/pdf/ aboutus/charter-of-stakeholders-relationship-committee.pdf. The terms of the charter broadly include: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Reviewing statutory compliances relating to all security holders. Resolution of the grievances of all security holders. Oversight of compliances in respect of dividend payments and transfer of unclaimed amounts to the Investor Education and Protection Fund (IEPF). 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 (RTA). 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. 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 8282 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 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. 92 I Report on Corporate Governance 100th Annual Report 2018-19 The status of total number of complaints received during the year under review is as follows: Sl. No. A. B. Description Received Total Replied Pending Table 12 Letters received from Statutory Bodies Securities & Exchange Board of India Stock Exchanges Depositories (NSDL/CDSL) Ministry of Corporate Affairs Consumer Forum Dividends Non-receipt of dividend/ interest warrants (pending reconciliation at the time of receipt of letters) Total 24 23 5 3 0 0 2 5 3 0 0 2 34 33 1 0 0 0 0 0 1 Notes: (cid:120) (cid:120) For the 1 unresolved complaint received through the SEBI SCORES System (System), the Action Taken Report has been uploaded on the System and the same is pending for closure as on 31st March 2019. There were no pending transfers/demats as on 31st March 2019. Mr. Sanjay V. Bhandarkar, Chairman of the SRC, was present at the last AGM. Risk Management Committee The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Ms. Vibha Padalkar, Chairperson Mr. Nawshir H. Mirza Mr. Kesava M. Chandrasekhar Mr. Banmali Agrawala Mr. Ashok S. Sethi The Committee met 4 times during the year under review. These meetings were held on 29th June 2018, 28th September 2018, 5th December 2018 and 26th March 2019, with the requisite quorum. The attendance details of these meetings are as follows: Table 13 % of Attendance Name of the Director Ms. Vibha Padalkar Mr. Nawshir H. Mirza Mr. K. M. Chandrasekhar Mr. Banmali Agrawala Mr. Ashok S. Sethi(1) No. of Meetings held during tenure (A) 4 4 No. of Meetings attended (B) 4 4 4 4 4 4 4 4 Note: (1) Consequent upon his superannuation as COO & Executive Director of the Company effective 30th April 2019, Mr. Sethi has ceased to be a member of the Committee. 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 Board has also approved the charter of the Committee defining its composition, powers, responsibilities, etc. The charter is available on the Company’s website at https://www.tatapower.com/pdf/aboutus/ charter-of-risk-management-committee.pdf. The terms of the charter broadly include: (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Reviewing the Company’s risk governance structure, risk assessment and risk management practices and guidelines, policies and procedures for risk assessment and risk management including the risk management plan. Reviewing approving and Management (ERM) framework. Enterprise-wide Risk Review the alignment of the ERM framework with the strategy of the Company. Monitor the Company’s risk appetite and strategy relating to key risks, including credit risk, liquidity and funding risk, market risk, cyber security risk, forex risk, commodity risk, product risk and reputational risk, as well as the guidelines, policies and processes for monitoring and mitigating such risks. Oversee Company’s process and policies for determining risk tolerance and review management’s measurement and comparison of overall risk tolerance to established levels. Review and analyse risk exposure related to specific issues, concentrations and limit excesses, and provide oversight of risk across organization. Review compliance with risk policies, monitor breaches/ trigger trips of risk tolerance limits and direct action. Nurture a healthy and independent risk management function in the Company. 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. (B/A) 100 100 100 100 100 Ms. Vibha Padalkar, Chairperson of the RMC, was present at the last AGM. (cid:153)(cid:3) Non-Statutory Committees The Board has also constituted the following non-statutory Committees: (i) (ii) (iii) Executive Committee of the Board Committee for Financial Facilities and Bank Accounts Committee of Directors Report on Corporate Governance I 93 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Executive Committee of the Board Terms of Reference The Committee comprises the following as on 31st March 2019: The role of this Committee is as follows: The Tata Power Company Limited (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) Mr. N. Chandrasekaran, Chairman Mr. Deepak M. Satwalekar Mr. Sanjay V. Bhandarkar Mr. Praveer Sinha Mr. Ashok S. Sethi(1) Note: (1) Consequent upon his superannuation as COO & Executive Director of the Company effective 30th April 2019, Mr. Sethi has ceased to be a member of the Committee. Terms of Reference The Committee covers a detailed review of the following matters before they are presented to the Board: i) ii) iii) iv) 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. v) Any other item as may be decided by the Board. The aforesaid matters were discussed in various Board meetings held during the year with the intent to avail expertise of all the Board members. Committee for Financial Facilities and Bank Accounts The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) Mr. Nawshir H. Mirza, Chairman Mr. Praveer Sinha Mr. Ashok S. Sethi(1) Note: (1) Consequent upon his superannuation as COO & Executive Director of the Company effective 30th April 2019, Mr. Sethi has ceased to be a member of the Committee. Terms of Reference 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, opening and closing of bank accounts, issuing and revoking of Power of Attorneys, accept modifications to the terms and conditions of the working capital facilities that may be made by the banks/financial institutions. The matters approved by this Committee were duly noted in the next Board meeting. Committee of Directors The Committee comprises the following as on 31st March 2019: (cid:120) (cid:120) (cid:120) Mr. Sanjay V. Bhandarkar, Chairman Mr. Banmali Agrawala Mr. Praveer Sinha (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) 94 I Report on Corporate Governance Borrowings of the Company subject to outstanding facilities not exceeding an amount of ₹12,500 crore of term loans and ₹ 8,000 crore of working capital facilities. Create security on the assets of the Company to secure the borrowings of the Company subject to these being within the limit approved by the shareholders of the Company under Section 180(1)(a) of the Act. Issue of corporate guarantees to secure the borrowings of wholly owned subsidiaries/step-down subsidiaries of wholly owned subsidiaries of the Company. in authorised signatories for the existing Change borrowings including working capital facilities of the Company. Commitment to capex item exceeding ₹ 200 crore (within Board approved Annual Business Plan) in a financial year. Enter into any coal, fuel and freight contracts having tenure above 5 years. Write off of receivables exceeding ₹ 10 crore in a financial year. Claim settlement and dispute exceeding ₹ 25 crore per instance and ₹ 50 crore in aggregate in a financial year. Waiver of delayed payment surcharge exceeding ₹ 50 crore in a financial year. investments and Approve investment proposals to Tata Power group companies within overall Board approved framework. recommend Framing of Investment Guidelines outlining prudential norms for investing in Mutual Funds, Fixed Deposits, Inter- corporate Deposits with approved corporates, Central and State Government securities and any subsequent amendments. Modification/addition/deletion of authorised signatory list to give effect to investments within the Prudential Investment Norms. Reconstitution of the Boards of Trustees of The Tata Power Consolidated Provident Fund, The Tata Power Company Limited Staff Superannuation Fund and Tata Power Gratuity Fund. Change in operating instructions involving the Company’s bank accounts. Submit Request for Qualification for any project and authorise execution of all documents, including Powers of Attorney, in connection with the same. All other matters delegated by the Board/Committee thereof, to the Committee comprising the CEO & Managing Director and the COO & Executive Director. 100th Annual Report 2018-19 General Body Meetings a) The details of the last three AGMs of the Company Table 14 Year ended Day, Date & Time Venue Special Resolutions passed 31st March 2018 Friday, 27th July 2018 at 3.00 p.m. 31st March 2017 Wednesday, 23rd August 2017 at 3.00 p.m. 31st March 2016 Wednesday, 21st September 2016 at 3.00 p.m. Birla Matushri Sabhagar, Sir Vithaldas Thackersey Marg, 19, New Marine Lines, Mumbai 400 020. (cid:120) Private placement of Non-Convertible Debentures/Bonds (cid:120) Private placement of Non-Convertible Debentures/Bonds (cid:120) Private placement of Non-Convertible Debentures (cid:120) Increase in limits of investments in other bodies corporate b) Details of the meeting convened in pursuance of the order passed by the National Company Law Tribunal (NCLT) Pursuant to the Order dated 10th October 2018 passed by the National Company Law Tribunal, Mumbai Bench in the Company Scheme Application No. 785 of 2018, a meeting of the Equity Shareholders of the Company was held at Walchand Hirachand Hall, IMC Chamber of Commerce and Industry, IMC Building, IMC Marg, Churchgate, Mumbai 400 020 on Wednesday, 12th December 2018 at 11:00 a.m. (IST) to consider and approve the scheme of arrangement between The Tata Power Company Limited and Tata Advanced Systems Limited and their respective shareholders and creditors under Sections 230 to 232 and other applicable provisions of the Act and the Rules thereunder. c) (i) Postal Ballot Details of resolutions passed by postal ballot During the year under review, two resolutions were passed by means of Postal Ballot on 18th May 2018, the details of which are as follows Table 15 Table 16 Ordinary Resolution No. 1 2 Brief Particulars Sale of 59,08,82,000 Equity Shares held in Panatone Finvest Limited to Tata Sons Private Limited Sale of 1,33,96,200 Equity Shares held in Tata Communications Limited to Panatone Finvest Limited (ii) Details of Voting Pattern Ordinary Resolution No. Ballots Received Total Shares In favour Against Invalid Ballots Votes Ballots Votes Ballots Votes 1 2 2,951 1,20,19,13,969 2,961 1,20,18,70,427 2,698 2,601 1,20,15,12,444 1,20,12,70,952 152 195 2,42,981 2,78,172 101 165 1,58,544 3,21,303 (iii) Person who conducted the aforesaid postal ballot exercise Mr. P. N. Parikh (ICSI Membership No. FCS 327), Practising Company Secretary of Parikh & Associates conducted the aforesaid postal ballot exercise in a fair and transparent manner. (iv) Whether any special resolution is proposed to be conducted through postal ballot: No (v) Procedure for Postal Ballot In compliance with Sections 108 and 110 and other applicable provisions of the Act read with the Rules framed thereunder and in terms of Regulation 44 of the Listing Regulations, the Company provided remote e-voting facility to all its Members. The Company engaged the services of National Securities Depository Limited (NSDL) for this purpose. The Members had the option to vote either by physical ballot form or through remote e-voting. The Company dispatched the postal ballot notices and forms along with postage prepaid business reply envelopes to its Members whose names appeared on the Register of Members/list of beneficiaries as on a cut-off date, i.e. 31st March 2018. The postal ballot notice was sent to the Members in electronic form at the e-mail addresses registered with their Depository Participants (in case of electronic shareholding)/the Company’s RTA (in case of Report on Corporate Governance I 95 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited b) Quarterly Results Quarterly, half yearly and annual financial results of the Company are published in widely circulated national newspapers, as per details given below: Table 18 Region Language Vadodara, Ahmedabad, Mumbai, Chandigarh, New Delhi, Kolkata, Lucknow, Nagpur and Pune Pune, Mumbai, Ahmedabad, New Delhi, Chandigarh, Lucknow, Hyderabad, Kolkata, and Bengaluru, Chennai Kochi Ahmednagar, Mumbai, Pune, Nagpur, Aurangabad and New Delhi English English Marathi Mumbai Gujarati Name of the Newspaper Indian Express – All editions Financial Express Loksatta – All editions Jam-e- Jamshed Weekly Vyapar + Phulchhab Vyapar Phulchhab (Rajkot) (Mumbai) and Gujarati Post quarterly results, an Investor Conference call is held where members of the financial community are invited to participate in the Q&A session with the Company’s management. The key highlights are discussed and investor/analyst queries are resolved in this forum. The quarterly results are also uploaded on the website at https://www.tatapower.com/investor-relations/quarterly- results.aspx. Annual Reports and Annual General Meetings: The Annual Reports are e-mailed/posted to Members and others entitled to receive them. The Annual Report is also available on the Company’s website at https://www. tatapower.com/investor-relations/annual-reports-archive. aspx in a user-friendly downloadable form. The Company also provides live Webcast facility of its AGM in co- ordination with NSDL. News Releases, Presentations etc.: Official news releases, detailed presentations made to media, analysts, institutional investors etc. are displayed on the Company’s website at https://www.tatapower.com/investor-relations/ analyst-presentation-archive.aspx. Official media releases, sent to the Stock Exchanges, are given directly to the press. physical shareholding). The Company also published an advertisement in the newspapers viz. Free Press Journal and Navshakti dated 18th April 2018, informing about the dispatch of the Notice and other information as mandated under the Act and applicable Rules. Voting rights were reckoned on the paid-up value of the shares registered in the names of the Members as on the cut-off date, i.e. 31st March 2018. Members desiring to exercise their votes by physical postal ballot forms were requested to return the forms, duly completed and signed, to the scrutinizer so as to reach them on or before the close of the voting period, i.e. 18th May 2018 at 5:00 p.m. (IST). Members desiring to exercise their votes by electronic mode were requested to vote before close of business hours on the last date of e-voting. The scrutinizer, after the completion of scrutiny, submitted his report to Mr. Hanoz M. Mistry, Company Secretary who was authorised to accept, acknowledge and countersign the Scrutinizer’s Report as well as declare the voting results in accordance with the provisions of the Act, the Rules framed thereunder and the Secretarial Standard 2 on General Meetings. The consolidated results of the voting by postal ballot and e-voting were then announced by Mr. Hanoz M. Mistry. The results were also displayed at the Registered Office and the Corporate Office of the Company and on the Company’s website at https://www. tatapower.com/investor-relations/postal-ballot.aspx? utm medium=301&utm_source=direct&utm_campaign=/ investor-relations/postal- ballot.aspx besides being communicated to BSE Limited (BSE) and National Stock Exchange of India Limited (NSE) and NSDL. Results were announced on 18th May 2018, being the last date for receipt of physical ballot forms and for remote e-voting. Means of Communication to the shareholders a) Calendar of financial year ended 31st March 2019 The Company follows April-March as the financial year. The meetings of the Board of Directors for approval of quarterly financial results for the financial year ended 31st March 2019 were held on the following dates: c) Table 17 Particulars Date Quarter ended 30th June 2018 26th July 2018 Quarter/half year 30th September 2018 Quarter/nine months 31st December 2018 ended 29th October 2018 d) ended 28th January 2019 Quarter/year ended 31st March 2019 2nd May 2019 96 I Report on Corporate Governance 100th Annual Report 2018-19 e) Website: Comprehensive about information the Company, its business and operations, Press Releases and investor information can be viewed at the Company’s website at 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, quarterly Corporate Governance report, presentations made to analysts, etc. f ) g) NSE Electronic Application Processing System (NEAPS) and BSE Online Portal: NSE has provided online platform NEAPS wherein the Company submits all the compliances/ disclosures to the Exchange in the SEBI prescribed format. Similar filings are made with BSE on their online Portal viz. BSE Corporate Compliance & Listing Centre. eXtensible Business Reporting Language (XBRL): XBRL is a standardized and structured way of communicating business and financial data in an electronic form. XBRL provides a language containing various definitions (tags) which uniquely represent the contents of each piece of financial statements or other kinds of compliance and business reports. BSE and NSE provide XBRL identical and based compliance reporting featuring homogeneous compliance data structures between Stock Exchanges and Ministry of Corporate Affairs. The XBRL filings are done on the NEAPS portal as well as the BSE online portal. General Shareholder Information (a) Details of AGM Last date of receipt of Proxy form : Tuesday, 18th June 2019 at 3:00 p.m. (IST) at Birla Matushri Sabhagar, Sir Vithaldas Thackersey Marg, 19, New Marine Lines, Mumbai 400 020. : Sunday, 16th June 2019 before 3:00 p.m. (IST) (b) Financial Year : 1st April to 31st March (c) Dividend (d) Book Closure : Dividend of ₹ 1.30 per Equity share fully paid up (130%) for the financial year 2018-19 has been recommended by the Board of Directors to Members for their approval. If approved by the Members, payment will be made on and from 20th June 2019. : From Friday, 7th June 2019 to Tuesday, 18th June 2019 (both days inclusive). (e) E-voting Dates : for e-voting The cut-off date for the purpose of determining the shareholders eligible is Tuesday, June 2019. The e-voting 11th commences on Friday, 14th June 2019 at 9.00 a.m. (IST) and ends on Monday, 17th June 2019 at 5.00 p.m. (IST). h) Web-based Query Redressal System: Members also have the facility of raising their queries/complaints on share related matters through an option provided on the Company’s website at https://www.tatapower.com/ investor-relations/investor-queries.aspx. (f ) (g) (h) i) j) k) SEBI Complaints Redressal 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 by the concerned company and online viewing by the investors of actions taken on the complaint and its current status. Dedicated e-mail ID for communication with Investor Education and Protection Fund Authority: The Company has a dedicated e-mail id jemahernosh@tatapower.com for communication with the IEPF Authorities. Stakeholders are requested to send their IEPF claim documents at iepfclaim@tsrdarashaw.com. Reminder to investors: Reminders to collect unclaimed dividend on shares or debenture redemption/interest are sent to the concerned shareholders and debenture holders. International Securities INE245A01021 Identification Number (ISIN): Corporate Identity Number (CIN): L28920MH1919PLC000567 Listing on Stock Exchanges Listing of Equity Shares: The Company’s Equity Shares are listed on two Stock Exchanges in India viz. (a) BSE Limited (Regional Stock Exchange), Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001; and (b) National Stock Exchange of India Limited, Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai 400 051. Listing of GDS and GDRs: 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. Report on Corporate Governance I 97 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 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. Number of outstanding GDS as on 31st March 2019: (cid:3) (cid:3) (cid:120) (cid:120) 436 (Issued in 1994 to Citibank NA) 1,43,980 (Issued in 2009 to Bank of New York, Mellon) Listing of Debt Securities: The various series of Debentures issued by the Company are listed as under: Series Amount outstanding as on 31st March 2019 (₹ in crore) Table 19 Listed on Name of the Debenture trustee with full contact details Secured, Non-Convertible, Non- 9.15% Cumulative, Redeemable, Taxable, Debentures with Separately Transferable Redeemable Principal Parts Secured, Non-Convertible, Non- 9.15% Cumulative, Redeemable, Taxable, Debentures with Separately Transferable Redeemable Principal Parts 9.40% Redeemable, Transferable, Secured, Non-Convertible Debentures 10.75% Unsecured Debentures 11.40% Perpetual Bonds 9.48% Convertible Debentures Unsecured, 7.99% Convertible Debentures Unsecured, Redeemable, Non- Redeemable, Non- 1,500 122 NSE 150 NSE 210 1,500 1,500 500 NSE NSE BSE & NSE NSE BSE Services Financial Centbank Limited, Central Bank of India, MMO Bldg., 3rd Floor (East Wing), 55, Mahatma Gandhi Road, Fort, Mumbai 400 001. Tel : 022 2261 6217 Fax : 022 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 : 022 4080 7000 Fax : 022 6631 1776 E-mail : itsl@idbitrustee.com Sl. No. 1. 2. 3. 4. 5. 6. 7. During the year, the Company redeemed the following series of Debentures: (cid:3) (cid:3) (cid:3) (cid:3) (cid:120) (cid:120) (cid:120) (cid:120) 10.10% ,Transferable Secured Redeemable Non-Convertible Debentures 10.40%, Transferable Secured Redeemable Non-Convertible Debentures 9.41% Unsecured, Non-Cumulative, Redeemable, Taxable, Listed, Rated, Non-Convertible Debentures 7.70% Unsecured, Non-Cumulative, Redeemable, Taxable, Listed, Rated, Non-Convertible Debentures (i) Listing and Custodial Fees The Company has paid the requisite Annual Listing and Custodial Fees to the Stock Exchanges and Depositories viz. Central Depository Services (India) Limited (CDSL) and NSDL, respectively for the financial years 2018-19 and 2019-20. (j) Listing Details Table 20 Name of Exchanges Stock Code Listing Date BSE Limited (physical form) (demat form) 400 500400 Listed on 1st January 1934 National Stock Exchange of India Limited TATAPOWER EQ Listed on 3rd April 1996 98 I Report on Corporate Governance 100th Annual Report 2018-19 (k) Market Price Data: Month wise High, Low and trading volumes of the Company’s Equity shares during the last financial year at BSE and NSE are given below: Stock Exchange BSE NSE Month High (₹) Low (₹) No. of shares traded April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 87.65 86.95 79.60 74.40 76.85 78.05 77.55 78.05 82.50 76.85 71.45 73.80 81.90 76.40 71.60 67.80 67.20 65.95 61.05 74.35 75.95 68.05 65.15 67.05 59,46,275 87,43,425 59,92,587 88,26,319 67,70,832 87,55,100 2,17,34,235 90,93,452 1,38,50,640 1,91,18,191 95,28,024 1,64,70,960 High (₹) 88.30 87.00 79.60 74.55 76.90 78.20 77.75 78.30 82.55 76.70 71.50 73.80 Low (₹) 81.90 76.45 71.65 67.80 67.15 65.85 60.95 74.40 75.95 68.15 65.25 67.05 Table 21 No. of shares traded 9,90,61,037 12,43,80,147 7,82,41,043 8,12,50,290 7,17,72,265 9,65,96,742 20,58,90,457 11,88,84,081 12,98,29,265 9,49,45,566 10,17,05,887 13,89,87,661 (l) (i) The market share price data in comparison to broad-based indices like BSE Sensex and Nifty are given below: Comparison of the Company’s share price with BSE Sensex in FY19: Months Tata Power closing price at BSE BSE Sensex Table 22 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 88.15 81.20 73.05 74.40 76.60 65.95 76.45 76.25 76.75 71.30 65.35 73.80 35,160.36 35,322.38 35,423.48 37,606.58 38,645.07 36,227.14 34,442.05 36,194.30 36,068.33 36,256.69 35,867.44 38,672.91 Report on Corporate Governance I 99 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S (ii) Comparison of the Company’s share price with NSE Nifty in FY19: The Tata Power Company Limited Table 23 Months Tata Power closing price at NSE April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 February 2019 March 2019 (iii) Performance in comparison to broad-based indices: Company's share price Indices As at 02.04.2018 As at 29.03.2019 Change (%) As at 02.04.2018 As at 29.03.2019 Change (%) 88.30 81.30 73.25 74.55 76.70 65.85 76.55 76.10 76.80 71.30 65.45 73.80 BSE 81.90 73.80 -10.98 BSE 33,255.36 38,672.91 14.01 NIFTY 10,739.35 10,736.15 10,714.30 11,356.50 11,680.50 10,930.45 10,386.60 10,876.75 10,862.55 10,830.95 10,792.50 11,623.90 Table 24 NSE 81.90 73.80 -10.98 Nifty 10,211.80 11,623.90 12.15 (m) None of the Company’s securities have been suspended from trading. (n) (i) 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 E-mail: csg-unit@tsrdarashaw.com Website: www.tsrdarashaw.com (ii) Branches of TSRDL 1. 2. 3. 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 Bungalow No.1, ‘E’ Road, Northern Town, Bistupur, Jamshedpur 831 001. Tel : 0657 242 6616, Fax : 0657 242 6937; E-mail: tsrdljsr@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 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 100 I Report on Corporate Governance 100th Annual Report 2018-19 (iii) 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 For the convenience of Members, all communications/documents are also accepted at the abovementioned branches/ agency of TSRDL between 10.00 a.m. to 3.30 p.m. (Monday to Friday except bank holidays). (o) Share transfer system Effective 1st April 2019, SEBI has amended Regulation 40 of the Listing Regulations, which deals with transfer or transmission or transposition of securities. According to this amendment, the requests for effecting the transfer of listed securities shall not be processed unless the securities are held in dematerialised form with a Depository. Therefore, for effecting any transfer, the securities shall mandatorily be required to be in demat form. According to SEBI, this amendment will bring the following benefits: (cid:120) (cid:120) It shall curb fraud and manipulation risk in physical transfer of securities by unscrupulous entities. Transfer of securities only in demat form will improve ease, convenience and safety of transactions for investors. Compliance of Share Transfer formalities As per the requirement of Regulation 40(9) of the Listing Regulations, the Company has obtained the half yearly certificates from the Company Secretary in practice for due compliance of share transfer formalities. The number of shares transferred/transmitted in physical form during FY18 & 19 are given below: Table 25 Shares transferred/transmitted in physical form FY19 FY18 Number of transfers/transmissions Number of shares Shareholding details of the Company Distribution of Shareholding by category as on 31st March 2019: (p) i. 5,601 1,161 69,35,646 24,53,873 Table 26 Category Total number of shares Total number of shareholders Physical Demat Total % Physical % Demat % Total % 1 - 5000 2,35,45,880 12,96,17,259 15,31,63,139 5001 - 10000 94,98,326 5,30,63,384 6,25,61,710 10001 - 20000 49,19,619 4,89,21,605 5,38,41,224 20001 - 30000 22,17,191 2,50,62,602 2,72,79,793 30001 - 40000 15,47,960 1,51,60,858 1,67,08,818 40001 - 50000 8,33,565 1,12,93,798 1,21,27,363 50001 - 100000 11,49,240 3,11,36,192 3,22,85,432 5.66 2.31 1.99 1.01 0.62 0.45 1.19 100001 and above 20,90,340 2,34,47,15,691 2,34,68,06,031 86.77 18,340 90.54 3,02,149 95.67 3,20,489 95.35 1,384 352 92 44 19 18 7 6.83 1.75 0.45 0.22 0.09 0.09 0.03 7,512 3,519 1,022 438 252 448 518 2.38 1.11 0.32 0.14 0.08 0.14 0.16 8,896 3,871 1,114 482 271 466 525 2.65 1.15 0.33 0.14 0.08 0.14 0.16 Total Note: 4,58,02,121 2,65,89,71,389 2,70,47,73,510* 100.00 20,256 100.00 3,15,858 100.00 3,36,114 100.00 *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. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Report on Corporate Governance I 101 ii. Shareholding pattern of the Company as on 31st March 2019: Particulars Promoters and promoters group Directors and their relatives Insurance Companies Financial Institutions/Banks Mutual Funds/UTI Clearing Members Corporate Bodies Body Corporate-NBFC Limited Liability Partnership-LLP Alternate Investment Fund Trusts Resident Individuals & HUF Central/State Governments Foreign Institutional Investors Foreign Portfolio Investors-Corporate Foreign Banks OCBs Global Depository Receipts Non-Resident Indians IEPF Suspense A/c Total The Tata Power Company Limited Table 27 Equity Share of ₹ 1 each No. of Shares % 89,25,44,226 36,862 35,46,87,403 1,98,45,323 28,80,54,658 86,39,783 3,20,18,004 65,737 3,98,413 23,65,000 18,33,460 34,40,72,665 69,54,490 83,18,180 71,03,88,567 19,05,981 4,400 18,32,300 2,39,71,117 68,36,941 33.00 0.00 13.11 0.73 10.65 0.32 1.18 0.00 0.01 0.09 0.07 12.72 0.26 0.31 26.26 0.07 0.00 0.07 0.90 0.25 2,70,47,73,510 100.00 iii. Top 10 Shareholders of the Company as on 31st March 2019: Sl. No. Name of Shareholder Total holding 1. 2. 3. 4. 5. 6. 7. 8. 9. Tata Sons Private Limited Life Insurance Corporation of India Limited Matthews Pacific Tiger Fund ICICI Prudential Balanced Fund First State Investments Icvc- Stewart Investors Global Emerging Markets Leaders Fund The New India Assurance Company Limited General Insurance Corporation of India Stewart Investors Global Emerging Markets Leaders Fund SBI Magnum Multicap Fund 10. Tata Steel Limited Total 102 I Report on Corporate Governance Table 28 % to paid-up capital 31.05 7.75 6.67 4.21 3.33 2.00 1.92 1.85 1.74 1.45 83,97,99,682 20,97,31,735 18,03,16,487 11,38,29,237 9,00,17,492 5,41,93,839 5,19,62,960 5,01,16,888 4,70,23,060 3,91,22,725 1,67,61,14,105 61.97 100th Annual Report 2018-19 (q) Details of Equity Shares in dematerialised and physical form as on 31st March 2019 The Company’s shares are compulsorily traded in dematerialised form and are available for trading through both the Depositories in India viz. NSDL and CDSL. The details of number of equity shares of the Company which are in dematerialised and physical form are given below: Particulars Number of shares % to total number of shares Number of shareholders Table 29 % to total number of shareholders Dematerialised form NSDL (A) CDSL (B) Sub-total (A+B) Physical form (C) Total (A+B+C) 2,57,43,50,950* 8,46,20,439 2,65,89,71,389 4,58,02,121 95.18 3.13 98.31 1.69 2,04,471 1,11,387 3,15,858 20,256 60.83 33.14 93.97 6.03 2,70,47,73,510 100.00 3,36,114 100.00 *includes entire shareholding of promoter and promoter group. (r) Commodity price risk or foreign exchange risk and hedging activities The Company has adopted the Commodity Price Risk Management Policy to manage its risks associated with commodity imports (presently only Coal) from international markets. The objective of this policy is to ensure protection from risk arising out of adverse and volatile movement in commodity prices by proper monitoring of the exposures and taking timely actions to keep risks at acceptable levels. In terms of SEBI Circular No. SEBI/HO/CFD/CMD1/CIR/P/2018/0000000141 dated 15th November 2018, the required information is provided as under: i) Risk management policy of the Company with respect to commodities including through hedging: The Commodity Price Risk Management Policy is available on the Company’s website at https://www.tatapower.com/corporate/policies.aspx. ii) Exposure of the Company to commodity and commodity risks faced by the Company throughout the year: (cid:120) (cid:120) Total exposure of the listed entity to commodities in ₹: The Company has total exposure of approx. ₹ 1,980 crore. Exposure of the listed entity to various commodities: Table 30 Commodity Name Exposure in ₹ towards the particular commodity Exposure in quantity terms towards the particular commodity % of such exposure hedged through commodity derivatives Domestic market International market Total OTC Exchange OTC Exchange Coal (cid:120) Trombay Plant – ₹ 1,130 crore (cid:120) Trombay Plant – 2.2 Million MT (cid:120) Jojobera Plant – ₹ 850 crore (cid:120) Jojobera Plant – 2.2 Million MT Nil Nil Nil Nil Nil (cid:3) (cid:3) (cid:120) Commodity risks faced by the Company during the year and how they have been managed are given below: The Company has its coal based power generation plants situated at Trombay, Mumbai and Jojobera, Jamshedpur (Jharkhand). Trombay Plant imports coal from Indonesia under long term index linked contract in accordance with Indonesian price regulation, while Jojobera Plant imports domestic coal (Indigenous coal) which is governed by notified price declared by Coal India Limited. The price of imported coal for Trombay Plant is USD 168 million (₹ 1,130 crore). The price varies based on coal market index. The coal price for Jojobera plant is ₹ 850 crore. As both the aforesaid plants are regulated business and the cost of coal is pass through, the Company does not have any risk towards fluctuation of price of coal being sourced for these plants. Therefore, the coal commodity is not hedged as risk exposure is not material to the Company. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Report on Corporate Governance I 103 (s) Plant locations of the Company and Group Companies The Tata Power Company Limited Table 31 Type of plants Thermal Generating Plants Power 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 , Kutch, Gujarat Maithon Right Bank Thermal Power Plant, Village Dambhui, PO Barbindia Thana Nirsa, District Dhanbad, Jharkhand Industrial Energy Limited, inside of Tata Steel Ltd., Kalinganagar, Jajpur, Jajpur Road , Dubri, Odisha Rithala CCGT Power Plant, 2/9, Sub Station Building, Behind Char Dham Apartment, Sector 9, Rohini, New Delhi Hydro Generating Stations Generating Station, Bhira PO Bhira, Taluka Mangaon, District Raigad, Maharashtra Generating Station, Bhivpuri, PO Bhivpuri Camp, Taluka Karjat, District Raigad, Maharashtra Generating Station, Khopoli, PO 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 Limited, Dagapela, Dagana, Bhutan Wind Farms Supa Wind Farm, Village Shahjahanpur & Pimpalgaon, Taluka Parner, District Ahmednagar, Maharashtra Khandke Wind Farm, Village Khandke, Taluka & District Ahmednagar, Maharashtra Bramanvel Wind Farm, Village Valve, Taluka Sakri, District Dhulia, Maharashtra Sadawaghapur Wind Farm, Village Sadawaghapur, Taluka Patan, District Satara, Maharashtra Agaswadi Wind Farm, Village Kannarwadi, Hiwarwadi & Agaswadi, Taluka Khatav, District Satara, Maharashtra Niwade Wind Farm, 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 Jath, Indorama, Maharashtra Samana Wind Farm, 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 Gadag Wind Farm, Hosur, Kanavi, Mulgund, Shiroland Harti, District Gadag, Karnataka Poolavadi Wind Farm, Villages: Anikaduvu, Mongilphuluvu, Illupunagaram, Taluka Madathukulam, District Tripur, Tamil Nadu Dalot Wind Farm, Village Raipur, Jungle, Khanpur, Talabkheda, Karaikhede, Taluka Arnod, District Pratapgarh, Rajasthan 104 I Report on Corporate Governance 100th Annual Report 2018-19 Type of plants Address of plants Vagarai Wind Farm Limited Appayampatti Village, Oddan Chatram Taluk, Dindigul District, Tamil Nadu Inox Wind Infrastructure Limited, 220 KV Pooling Substation Dangri, Teh-Fatehgarh, District, Jaisalmer, Rajasthan Dangri Wind Farm, Village Dangri, District Jaisalmer, Rajasthan Walwhan Energy Rajasthan, Village Ola Bahala Basti Bhesada, Raigarh District, Jaisalmer, Rajasthan Lahori Wind Farm, Village Lahori, District Shajapur, Madhya Pradesh Nimbagallu Wind Project, Nimbagallu Village, Uravakonda (Mandal), District Anantapur, Andhra Pradesh Amakhala Emoyeni Wind Farm, Bedford - 5780, Eastern Cape, South Africa Tsitsikama (TCWF) Wind Farm, Humansdorp - 6300, Eastern Cape, South Africa Solar Plants Mulshi Solar Plant, Mulshi (Khurd), Post Male, Taluka Mulshi, District Pune, Maharashtra Roof top Solar, Delhi Bidar, Srinivasapura, Kanakagiri, Karnataka Noamundi Solar Power Plant, Jharkhand Palsawade Solar Plant, Palsawade, Taluka Maan, District Satara, Maharashtra Sastra University, 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 Plot No. 6, Gujarat Solar Park Charanka, District Patan, Gujarat Solar Power plants (blocks # 17, 18, 27, 32 and 34 ) 2000 MW Solar Park, Thirumani Village, Pavagda Taluk, Tumkur, District Karnataka Plot - P4 & P5, Ananthapuramu Ultra Mega Solar Park, Thumkunta Village, Galiveedu Mandal, Raychoti Taluka, Kadapa, Andhra Pradesh Walwhan Urja Anjar Limited - Village Khirasara, Taluka Anjar, District Kutch, Gujarat Wawhan Solar Energy GJ Limited - Village Khirasara , Taluka Anjar, District Kutch, Gujarat MI MySolar 24 Private Limited - Village Fatehpur, Taluka Patdi, District Surendranagar, Gujarat Dreisatz MySolar 24 Private Limited - Village Fatehpur, Taluka Patdi, District Surendranagar, Gujarat Walwhan Solar Raj Limited - Village Ghitoor, Tehsil Baap, District Phalodi, Rajasthan Northwest Energy Private Limited - Village Ghitoor, Tehsil Baap, District Phalodi, Rajasthan Walwhan Solar AP Limited - Village Shrimandrup Nagar and Rawra, Tehsil Phalodi, District Jodhpur, Rajasthan Walwhan Solar RJ Limited - Village Kolayat, Bikaner, Rajasthan Walwhan Solar MP Limited: - Village Bhagwanpura Diken Padaliya, Taluk Jawad and Singoli, District Neemuch, Madhya Pradesh - Village Padaliya and Bhadhawa, Taluk Singoli, PIN 458226, District Neemuch, Madhya Pradesh Walwhan Solar MH Limited - MIDC Mangalwedha (G.C.), Taluka Mangalwedha, Maharashtra Report on Corporate Governance I 105 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Type of plants Address of plants The Tata Power Company Limited Clean Sustainable Solar Energy Private Limited - Village Shirshuphal, Baramati, Pune, Maharashtra Walwhan Solar AP Limited - Plot 5A, 6A & 6B IDC park, APIIC, Pulivendula, Kadapa District, Andhra Pradesh Walwhan Renewable Energy 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) Walwhan Solar KA Limited - Villages Nagasamudra & Heruru Taluka Molakalamuru, District Chitradurga, Karnataka Walwhan Solar PB Limited - Villages Jagaram Tirath & Teona Pujarian, Tehsil Talwandi Sabo, Bhatinda, Punjab Walwhan Solar TN Limited - Musri, Trichy, Tamilnadu Walwhan Solar BH Limited: - Bahera, Block: Dobhi, Post Office: Barachatti Anchal, Gaya, Bihar - Savkala & amp, Khaira Khurd, Block Amas, Post Office: Sherghati Anchal, Sherghati, Gaya, Bihar Walwhan Solar MH Limited, Village Dhalmu, Pratapgarh, Rajasthan Shil Road, Netivli, Kalyan, District Thane, Maharashtra - Dharavi Receiving Station Matunga, Near Shalimar Industrial Estate, Dharavi, Mumbai - Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra 42/43, Electronic City, Electronic City Post Office, Hosur Road, Bengaluru, Karnataka Transmission Division Distribution Division Strategic Engineering Division (t) 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: tatapower@ tatapower.com; Website: www.tatapower.com (u) Credit Rating During the year, the Company has sustained its long term bank facility credit rating of AA- (Stable) which has been reaffirmed by CRISIL Limited (CRISIL). The rating of AA- (Stable) awarded by CRISIL reflects high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Further, CRISIL has reaffirmed the rating of NCD programme (including perpetual and subordinated Non-convertible debentures) of the Company as AA-/stable. The Company’s short- term bank facility credit rated as A1+ by CRISIL, has been reaffirmed. The rating of A1+ for Commercial Paper has also been reaffirmed by CRISIL. This highest rating of A1+ indicates a very strong degree of safety with regard to timely payment of interest and principal. Such instruments carry lowest credit risk. Further, ICRA Limited (ICRA) has reaffirmed the rating on NCD programme of the Company as AA- (Stable). The 106 I Report on Corporate Governance rating indicates highest degree of safety regarding timely servicing of financial obligation. The rated instrument reflects high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The outlook on the long-term rating is stable. The rating of A1+ for Commercial Paper has also been reaffirmed by ICRA. This highest rating of A1+ indicates a very strong degree of safety with regard to timely payment of interest and principal. Such instruments carry lowest credit risk. CARE Ratings Limited has reaffirmed the rating on NCD programme (including perpetual bonds) of the Company as AA. The outlook is Stable. India Ratings & Research Private Limited (Ind-Ra), a Fitch Group Company, affirmed the rating on NCD programme of the Company as IND AA (Stable). Other Disclosures 1. 2. There were no materially significant related party transactions during the year which have potential conflict with the interest of the Company at large. from senior The Board has to material, financial and management commercial transactions where they and/or their relatives received disclosures relating 100th Annual Report 2018-19 3. 4. 5. 6. have personal interest. There are no materially significant related party transactions which have potential conflict with the interest of the Company at large. There was no non-compliance, penalties, strictures imposed on the Company by Stock Exchanges, the Securities and Exchange Board of India or any statutory authority, on any matter related to Capital Markets, during the last three years. The Company has maintained an integrated compliance dashboard which provides assurance to the Management and the Board of Directors regarding effectiveness of timely compliances. All the compliances applicable to the Company have been captured in the dashboard and are mapped amongst the respective users. The timelines are fixed based on the legal requirement and the system is aligned in such a manner that it alerts the users in a timely manner. The Company has adopted a revised Whistleblower Policy & Vigil Mechanism for directors, employees and stakeholders 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 at https://www.tatapower.com/corporate/policies.aspx. The Company affirms that no personnel have been denied access to the Audit Committee of Directors. All mandatory requirements of the Listing Regulations have been complied with by the Company. The status of compliance with the discretionary requirements, as stated under Part E of Schedule II to the Listing Regulations, is as under: (cid:120) (cid:120) (cid:120) (cid:120) The Board: As on date, the positions of the Chairman and the CEO are separate. Mr. N. Chandrasekaran, Non-Executive Chairman of the Company maintains a separate office for which the Company is not required to reimburse expenses. The Board has appointed Mr. Praveer Sinha as the CEO & Managing Director of the Company. All policy and strategic decisions of the Company are taken through a majority decision of the Board. Shareholder Rights: The half-yearly financial performance of the Company is sent to all the Members possessing e-mail IDs. The results are also posted on the Company’s website. Modified opinion(s) in Audit Report: The Auditors have expressed an unmodified opinion in their report on the financial statements of the Company. Reporting of Internal Auditor: The Internal Auditor reports to the Audit Committee of Directors. 7. The policy for determining material subsidiaries has been uploaded on the Company’s website at https://www. tatapower.com/pdf/aboutus/policy-for-determining- material-subsidiaries.pdf. 8. 9. The policy on dealing with related party transactions has been uploaded on the Company’s website at https:// www.tatapower.com/pdf/aboutus/rpt-policy-framework- guidelines.pdf. The Company did not raise any funds through preferential allotment or qualified institutions placement during the year under review. 10. A certificate from a Company Secretary in practice has been received stating that none of the directors on the Board of the Company have been debarred or disqualified from being appointed or continuing as directors of companies by SEBI/Ministry of Corporate Affairs or any such statutory authority. 11. All the recommendations of the various committees were accepted by the Board. 12. During the year, details of fees paid/payable to the Statutory Auditors and all entities in the network firm/ network entity of which the Statutory Auditor is a part, by the Company and its subsidiaries, are given below: Table 32 (` in crore) Particulars By the Company* By the Subsidiaries* Total Amount Statutory audit Other services Out-of-pocket expenses 3.54 0.61 0.22 2.63 1.24 0.18 6.17 1.85 0.40 Total 4.37 4.05 8.42 *The above fees are exclusive of applicable tax. 13. Disclosures in relation to the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 The Company has always believed in providing a safe and harassment-free workplace for every individual working in the Company. The Company has complied with the applicable provisions of the aforesaid Act and the Rules framed thereunder, including constitution of the Internal Complaints Committee (ICC). The Company has in place an Anti-Sexual Harassment Policy in line with the requirements of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the same is available on the Company’s website https://www.tatapower.com/pdf/aboutus/Sexual- at harass-policy.pdf. All employees (permanent, contractual, temporary and trainees, etc.) are covered under this Policy. The Policy is gender neutral. Report on Corporate Governance I 107 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Status of complaints as on 31st March 2019: Sl. No. 1. 2. 3. Particulars Table 33 Number of Complaints Number of complaints filed during the financial year Number of complaints disposed off during the financial year Number of complaints pending at the end of the financial year 0 N.A. N.A. 14. 15. 16. 17. 18. The Company has complied with all the requirements 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 Regulations 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation 46 of the Listing Regulations. In terms of Regulation 17(8) of the Listing Regulations, the CEO & Managing Director and the CFO 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. The same is attached herewith and marked as Annexure II. The Company follows Indian Accounting Standards (Ind AS) issued by the Ministry of Corporate Affairs in the preparation of its financial statements. The Company has obtained compliance certificate from the Practising Company Secretary on corporate governance, which is attached herewith and marked as Annexure III. 19. As required under Regulation 36(3) of the Listing Regulations and Secretarial Standard-2, particulars of Directors seeking appointment/re-appointment at the forthcoming AGM are given in the Notice of the AGM to be held on 18th June 2019. 20. Monitoring of Subsidiary Companies The Audit Committee reviews the financial statements of subsidiaries of the Company. It also reviews the investments made by such subsidiaries, the statement of all significant transactions and arrangements entered into by the subsidiaries, if any, and the compliances of each materially significant subsidiary on a periodic basis. The minutes of board meetings of the subsidiary companies are placed before the Board of the Company for review. 21. Directors and Officers Liability Insurance (D&O) As per the provisions of the Act and in compliance with Regulation 25(10) of the Listing Regulations, the 108 I Report on Corporate Governance The Tata Power Company Limited Company has taken a Directors and Officers (D&O) Liability Insurance policy on behalf of all Directors including Independent Directors, Officers, Managers and Employees of the Company for indemnifying any of them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they may be guilty in relation to the Company. Other Shareholder Information (cid:190) Transfer of unclaimed/unpaid amounts to Investor Education and Protection Fund In accordance with the provisions of Sections 124, 125 and other applicable provisions, if any, of the Act, read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (hereinafter referred to as “IEPF Rules”) (including any statutory modification(s) or re- enactment(s) thereof for the time being in force), the amount of dividend remaining unclaimed or unpaid for a period of seven years from the date of transfer to the unpaid dividend account, is required to be transferred to the IEPF, maintained by the Central Government. In pursuance of this, the dividend remaining unclaimed in respect of dividends declared upto the financial year ended 31st March 2011 have been transferred to the IEPF. The details of the unclaimed dividends so transferred are available on the Company’s website at https://www. tatapower.com/investor-relations/unclaimed-dividends. aspx and on the website of the Ministry of Corporate Affairs at www.mca.gov.in. In accordance with Section 124(6) of the Act, read with the IEPF Rules, all the shares in respect of which dividend has remained unclaimed or unpaid for seven consecutive years or more from the date of transfer to the unpaid dividend account are required to be transferred to the demat Account of the IEPF Authority. Accordingly, all the shares in respect of which dividends were declared upto the financial years ended 31st March 2011 and remained unclaimed are transferred to the IEPF. The Company had sent notices to all such Members in this regard and published a newspaper advertisement and, thereafter, transferred the shares to the IEPF during financial year 2018-19. The details of such shares transferred have been uploaded in the Company’s website at https://www. tatapower.com/investor-relations/unclaimed-dividends. aspx. The details of unclaimed dividends and Equity shares transferred to IEPF during the year 2018-19 are as follows: Table 34 Amount of unclaimed dividend transferred Number of Equity shares transferred ` 1,46,19,688 5,78,646 100th Annual Report 2018-19 The below table gives information relating to various outstanding dividends and the dates by which they can be claimed by the Members from the Company’s RTA: Date of dividend declaration Unclaimed Dividend (As on 31st March 2019) Table 35 Last date for claiming payment from TSRDL 17.08.2012 1,80,97,364.70 20.09.2019 16.08.2013 1,83,33,501.25 19.09.2020 13.08.2014 2,20,22,779.50 15.09.2021 05.08.2015 2,39,73,242.21 07.09.2022 21.09.2016 2,82,74,946.70 24.10.2023 24.08.2017 2,81,04,358.10 20.09.2024 27.07.2018 2,31,21,482.80 20.08.2025 Members who have not encashed the dividend warrant(s) from the financial year ended 31st March 2012 may forward their claims to the Company’s Registrar and Share Transfer Agents before they are due to be transferred to the IEPF. The shares and unclaimed dividend transferred to the IEPF can, however, be claimed back by the concerned Members from IEPF Authority after complying with the procedure prescribed under the IEPF Rules. The Member is required to make an online application to the IEPF Authority in Form No. IEPF -5 (available on www.iepf.gov.in). No claims shall lie against the Company in respect of the dividend/shares so transferred. The Member can file only one consolidated claim in a financial year as per the IEPF Rules. (cid:190) 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 change in their bank details with their Depository Participant (DP). regarding Instructions address, nomination and power of attorney should be given directly to the DP. change of (cid:190) Shares held in physical form: To facilitate better servicing, Members holding shares in physical form are requested to notify/send to TSRDL any change in their address/ mandate/bank details in which they wish their dividend to be credited, in case they have not been furnished earlier. (cid:190) Payment of dividend or interest or redemption or repayment As required under Regulation 12 read with Schedule I to the Listing Regulations, the Company is required to use, either directly or through the depositories or through their RTA, 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 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. Ink Character Recognition (MICR), (cid:190) Investor contact 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. The Company maintains a TOLL FREE Investor Helpline (No.1800-209-8484) to give Members the convenience of one more contact point with TSRDL, for redressal of grievances/ responses to queries. The Shareholders’ Relationship Team is located at the Registered Office of the Company. Contact Person: Mr. J. E. Mahernosh Tel.: 022 6665 7508 (cid:190) E-voting internet is a common infrastructure that E-voting enables investors to vote electronically on resolutions of companies. In case of voting through postal ballot, investors are equipped with two options viz, option to vote electronically or sending their votes through post. The Company will also have the e-voting facility for the items to be transacted at this AGM. The Ministry of Corporate Affairs 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. (cid:190) 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’ at https://www.tatapower.com/ pdf/nomination-form-14.pdf. Report on Corporate Governance I 109 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) (cid:190) Demat initiative (cid:190) Secretarial Audit The Tata Power Company Limited WHY DEMAT No physical shares can be transferred from 1st April 2019 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 In terms of the Act, the Company appointed M/s. Parikh & Associates, Practising Company Secretaries, to conduct Secretarial Audit of records and documents of the Company for FY19. The Secretarial Audit Report is provided as Annexure-IX to the Board’s Report. (cid:190) Description of voting rights All Equity shares issued by the Company carry equal voting rights. (cid:190) Awareness Sessions/Workshops Employees across the Company as well as the group are being sensitized about the various policies and governance practices of the Company. The Company had developed a system of keeping its employees educated about TCOC, Vigil Mechanism and Whistle Blower Policy, Sexual Harassment of Women at Workplace (Prevention, Prohibition & Redressal) Act, 2013, SEBI Insider Trading Regulations, etc. through e-mails, presentations and workshops. Ensures faster communication to investors (cid:190) Stakeholder Engagement Ease related to change of address Provides more acceptability and securities liquidity of 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 above, all the investors who are holding shares in physical form, should consider opening a demat account at the earliest and submit request for dematerialisation of their shares in order to protect the liquidity of the shares. (cid:190) 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. Fax No. e-mail website : 022 2499 4200 : 022 2497 6351 : info@nsdl.co.in : www.nsdl.co.in Central Depository Services (India) Limited Marathon Futurex, A-Wing, 25th floor, N. M. Joshi Marg, Lower Parel, Mumbai 400 013 Tel. No. Fax No. e-mail website : www.cdslindia.com : 022 2272 3333 : 022 2272 3199 : investor@cdslindia.com 110 I Report on Corporate Governance The Company has a dedicated department which facilitates an on-going dialogue between the Company and its stakeholders. The communication channels include: For external stakeholders - Analyst/investors meet, meeting with key stakeholders, for shareholders, online service and dedicated e-mail service for grievances, corporate website and access to business media to respond to queries, etc. factory visits For internal stakeholders - Employee satisfaction surveys, in employee engagement surveys for employee engagement processes, circulars and messages from management, corporate social initiatives, welfare initiatives for employees and their families, online updates for conveying topical developments, helpdesk facility, etc. improvement (cid:190) 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. 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. It will also help in avoidance of multiple mailing. 100th Annual Report 2018-19 iii) Confidentiality of security details ID/Client Folio Nos./DP ID/password 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 should Members registered intermediary. In case the intermediary does not act professionally, Members can take up the matter with SEBI. through a transact 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) Prevention of frauds There is a possibility of fraudulent transactions relating to folios which lie dormant. Hence, we urge you to exercise diligence and notify the Company of any change in address, as and when required. vii) Mode of Postage Share certificates and other sensitive documents should not be sent by ordinary post. It is recommended that Members should send such documents by registered post or courier. viii) Weblinks of Corporate policies and charters are available on the Company’s website at www.tatapower.com/ corporatepolicies.aspx DECLARATION Annexure I As required by the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, I affirm that 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 2019. For The Tata Power Company Limited Praveer Sinha CEO & Managing Director (DIN: 01785164) Report on Corporate Governance I 111 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Annexure II Chief Executive Officer (CEO) & Chief Financial Officer (CFO) Certification To The Board of Directors The Tata Power Company Limited We, the undersigned, in our respective capacities as Chief Executive Officer and Chief Financial Officer of The Tata Power Company Limited (‘the Company’), to the best of our knowledge and belief certify that: (a) We have reviewed the financial statements and the cash flow statement for the financial year ended 31st March 2019 and to the best of our knowledge and belief, we state that: (i) (ii) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; these statements together present a true and fair view of the Company’s affairs and are in compliance with the existing accounting standards, applicable laws and regulations. (b) There are no transactions entered into by the Company during the financial year, which are fraudulent, illegal or violative of the Company’s code of conduct. (c) We are responsible for establishing and maintaining internal controls and for evaluating the effectiveness of the same over the financial reporting of the Company and have disclosed to the Auditors and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we are aware and the steps we have taken or propose to take to rectify these deficiencies. (d) We have indicated, based on our most recent evaluation, wherever applicable, to the Auditors and Audit Committee: (i) (ii) (iii) significant changes, if any, in the internal control over financial reporting during the year; significant changes, if any, in the accounting policies made during the year and that the same has been disclosed in the notes to the financial statements; and instances of significant fraud of which we have become aware and the involvement therein, if any, of the management or an employee having a significant role in the Company’s internal control system over financial reporting. Mumbai, 2nd May 2019 Praveer Sinha CEO & Managing Director (DIN: 01785164) R. N. Subramanyam Chief Financial Officer Annexure III Practising Company Secretaries’ Certificate on Corporate Governance TO THE MEMBERS OF THE TATA POWER COMPANY LIMITED We have examined the compliance of the conditions of Corporate Governance by The Tata Power Company Limited (‘the Company’) for the year ended on March 31, 2019, as stipulated under Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and para C, D & E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulations”). The compliance of the conditions of Corporate Governance is the responsibility of the management. Our examination was limited to the review of procedures and implementation thereof, as adopted by the Company for ensuring compliance with conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financial statements of the Company. In our opinion and to the best of our information and according to the explanations given to us, and the representations made by the Directors and the management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the SEBI Listing Regulations for the year ended on March 31, 2019. We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company. For Parikh & Associates Practising Company Secretaries P. N. PARIKH Partner FCS: 327 CP: 1228 Mumbai, 2nd May, 2019 112 I Report on Corporate Governance 100th Annual Report 2018-19 BUSINESS RESPONSIBILITY REPORT 2018-19 Introduction The Tata Power Company Limited (Tata Power), India’s largest integrated power company has a presence 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. As on 31st March 2019, the Tata Power group of companies had an operational generation capacity of 10,957 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 33% 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 40-50% of its total generation capacity to be from non-fossil fuel-based generation sources by 2025, as per the Company’s strategic intent. Supporting the Indian Government’s ‘National electric mobility mission’, Tata Power established the Electric Vehicle (EV) charging stations in Mumbai, Delhi and Hyderabad, also covering power supply, backend power supply infrastructure and customized EV charging solutions. The EV charging solutions form the infrastructure backbone for a growing EV ecosystem and provide customers access to energy-efficient options with ease. The Company is a pioneer in technology adoption and is steadfast in strengthening and expanding its position in fast-evolving energy market with new avenues in the renewable space. The Company embodies the Tata Group’s philosophy of building a strong and sustainable business that is firmly based on the concept of Leadership with Care. Care is one of the core values which entrusts Care for Environment, Care for Community, Care for Customers and Care for People in Tata Power’s Sustainability model. The model aims 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. Tata Power is aligned to the Tata Group Sustainability Policy and takes guidance from it for all matters concerning sustainability. Tata Power has aligned to the United Nations Sustainable Development Goals (SDGs) through a comprehensive SDG mapping study involving SDG prioritization, Roadmap setting and Dashboard creation. The study helped identify Business and CSR SDGs material to the Company. Tata Power has adopted three-year targets for each prioritized business SDGs viz. SDG 7- Affordable & Clean Energy, SDG 9- Industry, Innovation & Infrastructure, SDG 12- Responsible Consumption & Production, SDG 13- Climate Action. Tata Power is probably the only company in India which has not only mapped its initiatives with SDGs but charted a way forward by creating roadmap and adopted targets on each of the prioritized business SDGs. 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 strong governance which has considered SACRED values for Tata Power: (cid:116)(cid:1) (cid:116)(cid:1) 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. 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 Elements 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 Business Responsibility Report I 113 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) Care - Care for Stakeholders - Environment, Customers & 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. 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 conformance to statutory requirements is of utmost importance at Tata Power and the development of Business Responsibility Report (BRR) for showcasing the Company’s sustainability performance is one of the examples of being a responsible company. Tata Power’s efforts for the Mahseer conservation program were recognized as the best Sustainable Green Initiative by ACEF Awards, 2018. Section A: General Information about the Company 1. 2. 3. 4. 5. 6. Corporate Identity Number (CIN) of the Company Name of the Company Registered address Website E-mail id Financial Year reported L28920MH1919PLC000567 The Tata Power Company Limited Bombay House, 24, Homi Mody Street, Mumbai 400 001. www.tatapower.com tatapower@tatapower.com 2018-19 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. (cid:1) (cid:1) (cid:1) 9. (cid:53)(cid:73)(cid:70)(cid:83)(cid:78)(cid:66)(cid:77)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:51)(cid:70)(cid:79)(cid:70)(cid:88)(cid:66)(cid:67)(cid:77)(cid:70)(cid:1)(cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79) (cid:53)(cid:83)(cid:66)(cid:79)(cid:84)(cid:78)(cid:74)(cid:84)(cid:84)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:69)(cid:74)(cid:84)(cid:85)(cid:83)(cid:74)(cid:67)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:70)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:74)(cid:85)(cid:90) (cid:47)(cid:70)(cid:89)(cid:85)(cid:1)(cid:40)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:81)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:84)(cid:80)(cid:77)(cid:86)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:14)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:51)(cid:80)(cid:80)(cid:71)(cid:85)(cid:80)(cid:81)(cid:13)(cid:1)(cid:38)(cid:55)(cid:1)(cid:68)(cid:73)(cid:66)(cid:83)(cid:72)(cid:74)(cid:79)(cid:72)(cid:13)(cid:1)(cid:41)(cid:80)(cid:78)(cid:70)(cid:1)(cid:34)(cid:86)(cid:85)(cid:80)(cid:78)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:52)(cid:80)(cid:77)(cid:66)(cid:83)(cid:1)(cid:46)(cid:74)(cid:68)(cid:83)(cid:80)(cid:72)(cid:83)(cid:74)(cid:69)(cid:84) List three key products/services that the Company manufactures/provides (as in balance sheet) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) Total number of locations where business activity is undertaken by the Company i. ii. Number of International Locations (Provide details of major 5) South Africa, Singapore, Georgia, Zambia, Indonesia and Bhutan Number of National Locations: Tata Power has 92 locations. The operational status as on 31st March 2019 is given below: State Maharashtra Delhi Gujarat Karnataka Rajasthan Tamil Nadu Jharkhand Andhra Pradesh Madhya Pradesh West Bengal Odisha Bihar Haryana Punjab Telangana Uttar Pradesh No. of Project locations 21 18 13 9 9 5 4 4 2 1 1 1 1 1 1 1 Hydros Wind Solar Thermal Transmission Distribution 3 - - - - - - - - - - - - - - - 9 - 6 1 4 2 - 1 1 - - - - - - - 6 15 6 8 4 3 1 3 1 - - 1 1 1 1 1 1 1 1 - - - 3 - - 1 1 - - - - - 1 1 - - - - - - - - - - - - - - 1 1 - - 1 - - - - - - - - - - - 114 I Business Responsibility Report 100th Annual Report 2018-19 10. Markets served by the Company- Local/State/National/International The markets served by Tata Power are listed below: Delhi License Area Gujarat Haryana Tamil Nadu Jharkhand (Jamshedpur Circle) Andhra Pradesh Local/State/National Karnataka Maharashtra Mumbai License Area Punjab Rajasthan Bihar International Ajmer License Area West Bengal Odisha Madhya Pradesh Telangana Uttar Pradesh South Africa Singapore Georgia Zambia Bhutan Indonesia (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) Section B: Financial Details of the Company Paid up Capital Total Turnover Total profit after taxes Total Social Responsibility (CSR) as percentage of profit after tax (%) on Corporate Spending ` 270.50 crore ` 7,688 crore ` 1,709 crore 2%* * Calculated as per Section 135 of the Companies Act, 2013 List of activities in which expenditure in the above has been incurred initiatives in alignment with Tata Power undertook CSR the 5 Thrust areas as outlined in the CSR Policy. Tata Power (Standalone) CSR Initiatives covered 13.76 lakh beneficiaries across 225 locations in Maharashtra, Gujarat, Jharkhand and West Bengal. Monitoring and Evaluation studies were undertaken to benchmark and improve the effectiveness of CSR Initiatives. Focus Areas % Spend Education Health and Sanitation Livelihood & Skill Building Water Financial Inclusivity Affirmative Action and Others 9.88 10.03 43.44 11.14 5.85 19.66 Tata Power Group Companies include The Tata Power Company Ltd., Tata Power Delhi Distribution Ltd., Coastal Gujarat Company Ltd., Tata Power Solar Systems Ltd., Tata Power Renewable Energy Ltd., Walwhan Renewable Energy Ltd., Tata Power Trading Company Ltd., Powerlinks Transmission Ltd., Af-Taab Investment Co. Ltd., Industrial Energy Ltd., NDPL Infra Ltd. and Maithon Power Ltd. The geographical coverage included 348 villages and 220 clusters across 15 states of the country. Following are the highlights of Tata Power Group Entities CSR Interventions: (cid:116)(cid:1) (cid:34)(cid:85)(cid:1)(cid:53)(cid:66)(cid:85)(cid:66)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:40)(cid:83)(cid:80)(cid:86)(cid:81)(cid:1)(cid:45)(cid:70)(cid:87)(cid:70)(cid:77)(cid:13)(cid:1)(cid:66)(cid:72)(cid:66)(cid:74)(cid:79)(cid:84)(cid:85)(cid:1)(cid:66)(cid:79)(cid:79)(cid:86)(cid:66)(cid:77)(cid:1)(cid:36)(cid:52)(cid:51)(cid:1)(cid:80)(cid:67)(cid:77)(cid:74)(cid:72)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) of ₹ 36.75 crore, ₹ 44.58 crore was spent in FY19 which included CSR expenses incurred by Joint Ventures (IEL & Powerlinks) which are considered as subsidiaries as per Companies Act 2013. Excluding IEL and Powerlinks, the CSR spent stood at ` 39.46 crore against the CSR obligation of ` 31.69 crore in FY19. (cid:53)(cid:80)(cid:85)(cid:66)(cid:77)(cid:1)(cid:35)(cid:70)(cid:79)(cid:70)(cid:246)(cid:68)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:19)(cid:21)(cid:15)(cid:23)(cid:24)(cid:1)(cid:77)(cid:66)(cid:76)(cid:73)(cid:1)(cid:66)(cid:72)(cid:66)(cid:74)(cid:79)(cid:84)(cid:85)(cid:1)(cid:85)(cid:66)(cid:83)(cid:72)(cid:70)(cid:85)(cid:1)(cid:80)(cid:71)(cid:1) 20.30 lakh in FY19. (cid:18)(cid:19)(cid:18)(cid:6)(cid:1)(cid:67)(cid:70)(cid:79)(cid:70)(cid:246)(cid:68)(cid:74)(cid:66)(cid:83)(cid:74)(cid:70)(cid:84)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:18)(cid:19)(cid:18)(cid:6)(cid:1)(cid:36)(cid:52)(cid:51)(cid:1)(cid:52)(cid:81)(cid:70)(cid:79)(cid:85)(cid:1)(cid:66)(cid:68)(cid:73)(cid:74)(cid:70)(cid:87)(cid:70)(cid:69)(cid:1)(cid:66)(cid:72)(cid:66)(cid:74)(cid:79)(cid:84)(cid:85)(cid:1) Annual Target FY19 at Tata Power Group Level in FY19. (cid:25)(cid:19)(cid:13)(cid:25)(cid:23)(cid:24)(cid:1)(cid:73)(cid:80)(cid:86)(cid:83)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1)(cid:87)(cid:80)(cid:77)(cid:86)(cid:79)(cid:85)(cid:70)(cid:70)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1)(cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:85)(cid:66)(cid:76)(cid:70)(cid:79)(cid:1)(cid:67)(cid:90)(cid:1)(cid:70)(cid:78)(cid:81)(cid:77)(cid:80)(cid:90)(cid:70)(cid:70)(cid:84)(cid:1)(cid:80)(cid:71)(cid:1) Tata Power Group which is 3 times higher than previous year. (cid:42)(cid:79)(cid:69)(cid:70)(cid:89)(cid:1) (cid:52)(cid:86)(cid:83)(cid:87)(cid:70)(cid:90)(cid:1) (cid:84)(cid:73)(cid:80)(cid:88)(cid:70)(cid:69)(cid:1) (cid:25)(cid:19)(cid:6)(cid:1) (cid:36)(cid:80)(cid:78)(cid:78)(cid:86)(cid:79)(cid:74)(cid:85)(cid:90)(cid:1) (cid:38)(cid:79)(cid:72)(cid:66)(cid:72)(cid:70)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) achievement against previous year score of 79%. An independent Social Return on Investment Study was conducted for the first time which offered insights to improve CSR program design and returns. (cid:39)(cid:77)(cid:66)(cid:72)(cid:84)(cid:73)(cid:74)(cid:81)(cid:1)(cid:42)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:84)(cid:1)(cid:84)(cid:68)(cid:66)(cid:77)(cid:70)(cid:69)(cid:1)(cid:66)(cid:68)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1)(cid:66)(cid:77)(cid:77)(cid:1)(cid:77)(cid:80)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:74)(cid:79)(cid:1)(cid:39)(cid:58)(cid:18)(cid:26)(cid:27) - Inclusivity scaled across all major Financial locations. 3.43 lakh beneficiaries covered with resources accessed under various Govt. Schemes by communities. Dhaaga (Women Micro-Enterprise) scaled from 15 members to 1,050 members and replicated from 1 location to 16 locations. 12 Exhibitions cum sale organized with order value exceeding ₹ 37 lakh during the year. Tata Group Companies (Tata AIA Life Insurance Co. Ltd. and The Indian Hotels Co. Ltd.) also invited Dhaaga Members for organizing exhibition cum sale. Abha (Women Empowerment) scaled to cover 1,341 members for vocational training in Delhi and Mumbai. The Abha concept rolled out in Tata Power Skill Development Institute (Mumbai) covering 300 women trainee batch for power sector skilling. Employability in at Kalinganagar partnership with Tata Consultancy Services Ltd. (TCS) has trained more than 1,880 youths with 50% placed in TCS and ranked as best performers. Replicated in Mundra and Maithon. Participatory Ground Water Management intervention of Mundra was replicated in Maithon and Wind Locations. Resources worth ₹ 1.34 crore mobilized from NABARD and ₹ 75 lakh from IIT- Gandhinagar respectively. Maval Dairy - Women centre dairy based enterprise comprising 1,100 members from 26 villages of Maval undertaken. The Dairy Plant construction and machinery installation completed. initiative Business Responsibility Report I 115 - - - - - E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S - in Volunteering Usage of Technology Portal, MIS Software and Financial Inclusivity App (Haqdarshak) for enhancing efficiency. in CSR Section C: Other Details 1. 2. 3. Does the Company have any Subsidiary Company/ Companies? Tata Power has 53 subsidiaries as on 31st March 2019. Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s). All the major subsidiaries of Tata Power group have their own BR plans which are recommended by their respective CSR Committees. Tata Power encourages its subsidiary companies to participate in Tata Power group wide sustainability initiatives. All subsidiaries are aligned to the CSR Strategy and CSR Policy and implement activities under the 5 thrust areas. 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 Health & Safety, Environment, Human Rights and Ethics & Compliance. The suppliers/vendors are required to ensure The Tata Power Company Limited conformance to the RSCM parameters in addition to the 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. DIN Number Name Designation CEO & Managing Director 01785164 Mr. Praveer Sinha 2. DIN Number 01741911 Name Designation COO & Executive Director Mr. Ashok S. Sethi b. Details of BR Head DIN No. Name Designation 07252909 Ms. Shalini Singh Chief-Corp. Communications & Sustainability Contact 022 67171666 2. Principle-wise (as per NVGs) BR Policy/Policies (Reply in Y/N) The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These briefly are 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 P1 P2 P3 P4 P5 P6 P7 P8 P9 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? 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 Tata Power policies are based on the NVG principles and also conform to the International standards like ISO 9000, 14000, OHSAS 18000, UNGC principles, ILO principles and United Nations Sustainable Development Goals (SDGs). 116 I Business Responsibility Report 100th Annual Report 2018-19 Has the policy being approved by the Board? If yes, has it been signed by MD/owner/CEO/ appropriate Board Director? Does the company have a specified committee of the Board/ Director/Official to oversee the implementation of the policy? Policies are designed to ensure employee feedback, industry norms and legal norms are met in true spirit. The policies have been developed as per the need and are duly signed by the CEO & Managing Director. 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? https://www.tatapower.com/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? Has the Company carried out independent audit/evaluation of the working of this policy by an internal or external agency? 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 Policies are reviewed periodically for their implementation based on the commitment framework and related risk controls are set in place. Policies related to workforce benefits and well being are co-created, in which employees’ inputs are taken and incorporated in the policy building process. These inputs along with internal and external benchmarking, form the pillars of policy formation. 2a. If answer to S. No. 1 against any principle, is ‘No’, please explain why: (Tick up to 2 options) Sl. No. Questions P1 P2 P3 P4 P5 P6 P7 P8 P9 1. 2. 3. 4. 5. 6. 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 Tata Power policies are developed based on requirement and aims 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 Board CSR Committee and Apex Leadership. The CSR committee meets quarterly and recommends the activities to be undertaken by the Company as specified in Schedule VII to the Act or prescribed by the rules. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Business Responsibility Report I 117 The Tata Power Company Limited Principle 2 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 into the business of Generation, Transmission and Distribution of electricity. Generation: At all generating stations, conformance to environmental norms, safety, occupational health of the employees (permanent/contract) is considered a priority. Tata Power’s Strategic Intent 2025 has considered achieving 40-50% generation portfolio from non-fossil fuel sources to reduce impact on the environment. Further, all thermal stations of Tata Power are IMS compliant. Transmission: Tata Power conducts a campaign called Jan Jagruti Abhiyan to create safety awareness amongst people staying below the overhead High Tension lines in Mumbai. Employees visit different locations under high voltage Transmission Lines and create safety awareness among the community at large. Intensified Jan Jagruti is conducted during Sankranti Festival season, Ganpati Festival, and roof repair season. initiatives Distribution: Various like Safety audits in consumer premises, Club Enerji, Demand Side Management programs, and Be Green initiative creates awareness for customers/society at large on energy efficiency and its conservation, safety, and reducing the carbon footprint. 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. during Reduction sourcing/production/ distribution achieved since the previous year throughout the value chain? in auxiliary power Various measures resulting in ash utilization, consumption, reduction zero discharge, rain water harvesting, energy conservation, and scrap utilization etc. are in place for environment management. Tata Power has improved ash utilization at all coal fired power plants and is continuously working on reducing fresh water consumption at thermal power plants. Tata Power is in the process of minimizing atmospheric pollution by installing Desulphurization Systems at all coal fired power plants by 2021-22. ii. Reduction during usage by consumers (energy, water) has been achieved since the previous year? Tata Power has been a pioneer in propagating energy conservation and efficiency. DSM programs support energy conservation in the residential customer segment. As a part of the DSM program, more than 4,000 energy efficient appliances (ceiling fan, AC, refrigerator) have been provided Apex leadership SBU Heads Corporate Sustainability team Sustainability SPOCs (Thermal, T&D, Renewables, HR, CSR, IA & RM, BD etc) 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? in Yes, Tata Power publishes Sustainability Report accordance with Global Reporting (GRI) standards annually. The recent Sustainability Report can be viewed at https://www.tatapower.com/sustainability/ communication.aspx Initiative 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 Tata Code of Conduct (TCoC), which is a comprehensive document with an ethical roadmap for Tata employees, companies, including third parties dealing with Tata Power, thus covering 100% of its operations. TCoC consists of 10 sections and sub-clauses, that covers Financial Reporting, National Interests, Political Non-Alignment, Health, Safety and Environment, Corporate Citizenship, Ethical Conduct, Anti-corruption etc. The TCoC extends to Group Joint Ventures/ Subsidiaries/Suppliers/Contractors. 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 FY19 Employees Vendor Company Investor Society* 55 7 0 34 4 Satisfactorily resolved by the management (%) 95 86 0 97.06 75 * includes complaints from community and customers 118 I Business Responsibility Report 100th Annual Report 2018-19 to consumers in FY19. The year also witnessed the launch of DSM Heat Pump Water Heating System Pilot program. Tata Power has also pioneered in some unique energy conservation interventions like Energy audits, demand response (reduction on load by consumer on the request by utility), thermal storage etc. “Know Your Electricity Consumption (KYEC)” program was rolled out for Commercial and Industrial and selective Residential consumers as a key differentiator. Other value-added services like Energy Audit, Ghar Ka Suraksha Kavach, Consumer Services-Beyond meters, Solar Roof Top offerings were also made available to consumers of Mumbai. The Company carried out energy audits for Industrial and Commercial consumers for mapping their unique power consumption pattern and offer specific recommendations to improve the process and equipment efficiency. Another energy conservation campaign at Tata Power is Club Enerji, which recognises the immense value of the contribution that school children, parents, teachers and society at large can make to help curb the wasteful usage of electric power. Club Enerji has reached 553 schools across India, sensitized more than 23.84 Mn. citizens and saved more than 29.8 Mn. units till date. This saving is equivalent to saving 28,000 tons of CO2. More than 2,000 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? 5. Yes, the Company conforms to responsible sourcing with respect to environment, safety, human rights and ethics, apart from the economic considerations as part of the sourcing procedure. 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. Safety evaluation and qualification has been made an integral part of the award process and a part of online vendor registration process. 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 TPSDI training centres for enhancing employability. 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? The Company engaged with the community its neighbourhood as indirect workforce through business associates and contractors based on relevant skill set and nature of job. The contract workforce are trained at in TPSDI on various industrial vocations and safety aspects to enhance their skills and efficiency in work practices. Thus, the Company contributes to capability building of the contractors and their workforce to ensure that the workforce is adequately trained to safely perform the job efficiently with higher productivity and quality standards. In FY19, total number of trainees was 16,067 out of which 48% were from SC/ST communities with 80% placement for fresher youths from SC/ST community. As a part of Affirmative Action (AA), the Company continued its journey of working with local vendors and promoting inclusion of SC/ST in the business opportunities. This is driven by Corporate Contracts department with a single point of contact at the Corporate level, as well as at Division/Site level (Procurement Heads at Division) to facilitate inclusion of SC/ST vendors. Affirmative Action process for Vendor Enlistment and Ordering was deployed to encourage and evolve entrepreneurship skill among the communities and enable them to be a part of business ecosystem. It also made them compete with positive discrimination element by offering a price preference of 5% over the L1 bidder and also gives incentive of 1% of contract value for engaging 50% workforce from SC/ST community. Tata Power also promoted entrepreneurship at community level by supporting enterprise development. It also supports 70,000 Self-Help Group (SHG) members by imparting income generation activities and supported 21,000 youth, farmers and fishermen through training to demonstrate overall increase in income level per acreage to make the community members self-reliant. 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 scrap steel and wood are reused internally. Principle 3 1. 2. 3. Please indicate the Total number of employees Please indicate the Total number of employees hired on temporary/ c o n t r a c t u a l / c a s u a l basis indicate the Please Number of permanent women employees number Total of employees are 3,248 as on 31st March 2019 The total number of contract employees are 7,058 as on 31st March 2019 number of Total permanent women employees are 307 as on 31st March 2019 Business Responsibility Report I 119 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 4. 5. indicate the Please Number of permanent employees with disabilities you have Do an employee association that is recognized by management? percentage 6. What of your permanent employees is members recognized of employee association? this number of Total permanent employees with disabilities are 3 employees (2 officers + 1 staff ) as on 31st March 2019 Yes, there is an employee is association recognized the management - Union that by are union 26% employees (858) out of 3,248 of the total permanent employees of Tata Power are members of employee unions. * The above numbers pertain to Tata Power, the parent entity. 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 No. of complaints filed during the financial year No. of complaints pending as on end of the financial year Child labour/ forced labour/ involuntary labour Sexual harassment Discriminatory employment 0 0 0 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 1,921 Manhours Safety Capability Training 50,720 Manhours Technical Training Nil Casual/Temporary/Contractual Employees Safety Induction Training 1,46,848 Manhours Safety Capability Training 1,70,440 Manhours Principle 4 1. Has the company mapped its internal and external stakeholders? Yes, Tata Power conducted a comprehensive Stakeholder engagement study internal and external stakeholders in a structured manner. The Company is carrying out engagements with investors, in 2015 which mapped 120 I Business Responsibility Report The Tata Power Company Limited employees, customers, suppliers, community etc. with a periodic frequency. 2. Out of the above, has the company identified the disadvantaged, vulnerable & marginalized stakeholders? As part of Affirmative Action Policy, Tata Power worked with the marginalized and disadvantaged communities which include, tribal villages, vulnerable children who are in need of care, protection and 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 as below: (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:48)(cid:86)(cid:85)(cid:1) (cid:80)(cid:71)(cid:1) (cid:24)(cid:17)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) (cid:52)(cid:41)(cid:40)(cid:1) (cid:78)(cid:70)(cid:78)(cid:67)(cid:70)(cid:83)(cid:84)(cid:13)(cid:1) (cid:19)(cid:17)(cid:6)(cid:1) (cid:71)(cid:83)(cid:80)(cid:78)(cid:1) SC/ ST communities were supported income generation activities including garment making, herbal products, traditional handicraft, mushroom cultivation, vermicomposting. for (cid:46)(cid:80)(cid:83)(cid:70)(cid:1) (cid:85)(cid:73)(cid:66)(cid:79)(cid:1) (cid:25)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) (cid:90)(cid:80)(cid:86)(cid:85)(cid:73)(cid:84)(cid:1) (cid:71)(cid:83)(cid:80)(cid:78)(cid:1) SC/ST communities trained by TPSDI under various power sector skilling courses. (cid:48)(cid:86)(cid:85)(cid:1) (cid:80)(cid:71)(cid:1) (cid:19)(cid:24)(cid:13)(cid:21)(cid:26)(cid:20)(cid:13)(cid:1) (cid:19)(cid:17)(cid:6)(cid:1) (cid:84)(cid:85)(cid:86)(cid:69)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1) (cid:68)(cid:80)(cid:87)(cid:70)(cid:83)(cid:70)(cid:69)(cid:1) (cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1) education program across all locations who were from SC/ST communities and their overall academic performance improvement was 69% more than previous year and enrolment rate improved, and dropout rates were reduced. Extra coaching classes, spoken English, sports promotion programs are conducted in schools to improve interpersonal skills and personalities of the students. (cid:52)(cid:86)(cid:81)(cid:81)(cid:80)(cid:83)(cid:85)(cid:70)(cid:69)(cid:1) (cid:22)(cid:13)(cid:17)(cid:17)(cid:17)(cid:1) SC/ST farmers in systemic rice intensification, seeds, advanced technology and integrated watershed management practices. improved varieties of (cid:52)(cid:81)(cid:80)(cid:79)(cid:84)(cid:80)(cid:83)(cid:74)(cid:79)(cid:72)(cid:1) (cid:73)(cid:74)(cid:72)(cid:73)(cid:1) (cid:81)(cid:70)(cid:83)(cid:71)(cid:80)(cid:83)(cid:78)(cid:74)(cid:79)(cid:72)(cid:1) (cid:84)(cid:85)(cid:86)(cid:69)(cid:70)(cid:79)(cid:85)(cid:84)(cid:1) (cid:85)(cid:73)(cid:83)(cid:80)(cid:86)(cid:72)(cid:73)(cid:1) scholarships like FAEA at Tata group level for Xth and XIIth standard students. Supporting Kalinga Institute of Social Sciences, Bhubaneswar for catering educational services to ST students. (cid:36)(cid:80)(cid:77)(cid:77)(cid:66)(cid:67)(cid:80)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:77)(cid:80)(cid:68)(cid:66)(cid:77)(cid:1) (cid:66)(cid:69)(cid:78)(cid:74)(cid:79)(cid:74)(cid:84)(cid:85)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:56)(cid:66)(cid:85)(cid:70)(cid:83)(cid:13)(cid:1) Sanitation and Hygiene issues were undertaken to make Open Defecation Free Villages as a part of Swaccha Bharat Abhiyan by sensitizing through Community Lead Total Sanitation campaigns. (cid:53)(cid:73)(cid:70)(cid:1) (cid:36)(cid:80)(cid:78)(cid:81)(cid:66)(cid:79)(cid:90)(cid:1) (cid:66)(cid:77)(cid:84)(cid:80)(cid:1) (cid:86)(cid:79)(cid:69)(cid:70)(cid:83)(cid:85)(cid:80)(cid:80)(cid:76)(cid:1) (cid:88)(cid:80)(cid:78)(cid:70)(cid:79)(cid:1) (cid:70)(cid:79)(cid:85)(cid:70)(cid:83)(cid:81)(cid:83)(cid:74)(cid:84)(cid:70)(cid:1) development under Dhaaga Initiative in which 1,050 women have been trained and linked to market for their products with income of ` 2,140 on monthly basis. (cid:54)(cid:79)(cid:69)(cid:70)(cid:83)(cid:1)(cid:88)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1)(cid:74)(cid:79)(cid:74)(cid:85)(cid:74)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:13)(cid:1)(cid:71)(cid:80)(cid:68)(cid:86)(cid:84)(cid:1)(cid:88)(cid:66)(cid:84)(cid:1)(cid:80)(cid:79)(cid:1)(cid:69)(cid:83)(cid:74)(cid:79)(cid:76)(cid:74)(cid:79)(cid:72)(cid:1)(cid:88)(cid:66)(cid:85)(cid:70)(cid:83)(cid:1) and integrated ground water management which was implemented in various locations. 100th Annual Report 2018-19 (cid:1) (cid:116)(cid:1) (cid:52)(cid:81)(cid:80)(cid:83)(cid:85)(cid:84)(cid:1) (cid:88)(cid:66)(cid:84)(cid:1) (cid:74)(cid:79)(cid:85)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:70)(cid:69)(cid:1) (cid:85)(cid:80)(cid:1) (cid:70)(cid:79)(cid:73)(cid:66)(cid:79)(cid:68)(cid:70)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:68)(cid:73)(cid:66)(cid:79)(cid:79)(cid:70)(cid:77)(cid:74)(cid:91)(cid:70)(cid:1) youth energy and some of the youth have been selected in regional and national level camps in football, kabaddi and cricket. (like fossil fuel - coal, oil, gas, water; managing waste; afforestation), waste management, combating climate change, active citizenship and ‘Saying No to Plastics’ being the theme for FY19. 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? respects Human Rights and has a Tata Power dedicated Policy on Human Rights with a commitment framework. This policy is aligned with the UN Human Rights Declaration, International Labour Organisation fundamental conventions and other fundamental labour principles. Through the policy, the Company ensures conformance to the labour principles including the prohibition of child labour, forced labour, freedom of association and protection from discrimination in all its operations. fundamental 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 the year. 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. The Environment Policy encourages the Company to conserve resources, reduce environmental impact and seeks to enhance the awareness among employees and make business decisions. The Joint Ventures/Suppliers have developed their own policies taking essence from the Company’s policy. However, the RSCM Policy has environment protection as one of its criteria applicable to all the 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 2025, Tata Power aims to generate 40-50% of its generating capacity from non-fossil fuel sources like hydro, solar, wind, waste heat recovery, etc. Additionally, Club Enerji has been ceaselessly working towards creating responsible citizens of tomorrow with focus on conserving energy and natural resources (cid:1) (cid:1) (cid:1) 3. Does the company identify and assess potential environmental risks? Yes, environment and climate change related risks are identified and added to the risk register for periodic reviews. A risk owner and risk champion are assigned to each identified risk who then analyses the risk for required mitigation measures. The Risk Management Committee of the Board reviews the key risks along with status of mitigation measures. 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 in Gujarat. The Company also has Mithapur Solar project registered under CDM. In FY19, volume of 78,540 Carbon Credits (CERs) were traded from these projects combined. The gross revenue generated from such sale is ~ ` 3.97 crore. Walwhan Renewable Energy Limited (WREL) has eight CDM registered projects but no CERs were issued or traded in FY19. 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. 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 through a structured short/ long-term technological roadmap. The medium and Company has moved to work in various innovative areas in a collaborative manner, rather than sourcing or new technology. Some efforts by Tata Power under technology absorption, adaptation and innovation are; (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:52)(cid:70)(cid:85)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:86)(cid:81)(cid:1) (cid:80)(cid:71)(cid:1) (cid:74)(cid:79)(cid:79)(cid:80)(cid:87)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:68)(cid:80)(cid:86)(cid:79)(cid:68)(cid:74)(cid:77)(cid:84)(cid:1) (cid:66)(cid:68)(cid:83)(cid:80)(cid:84)(cid:84)(cid:1) (cid:87)(cid:66)(cid:83)(cid:74)(cid:80)(cid:86)(cid:84)(cid:1) divisions to come up with innovative projects that have a business impact. (cid:54)(cid:85)(cid:74)(cid:77)(cid:74)(cid:91)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:80)(cid:71)(cid:1) (cid:69)(cid:83)(cid:80)(cid:79)(cid:70)(cid:84)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:74)(cid:78)(cid:66)(cid:72)(cid:70)(cid:1) (cid:66)(cid:79)(cid:66)(cid:77)(cid:90)(cid:85)(cid:74)(cid:68)(cid:84)(cid:1) (cid:74)(cid:79)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) utility sector for coal pile assessments, thermal imaging of PV farms and open switch yards. (cid:51)(cid:80)(cid:67)(cid:80)(cid:85)(cid:74)(cid:68)(cid:84)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) (cid:66)(cid:83)(cid:70)(cid:66)(cid:84)(cid:1) (cid:88)(cid:73)(cid:70)(cid:83)(cid:70)(cid:74)(cid:79)(cid:1) (cid:78)(cid:66)(cid:79)(cid:86)(cid:66)(cid:77)(cid:1) (cid:74)(cid:79)(cid:85)(cid:70)(cid:83)(cid:87)(cid:70)(cid:79)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) can be substituted like high rise painting robot, tunnel inspection robot. Business Responsibility Report I 121 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:37)(cid:70)(cid:87)(cid:70)(cid:77)(cid:80)(cid:81)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1) (cid:80)(cid:71)(cid:1) (cid:79)(cid:70)(cid:88)(cid:1) (cid:81)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:85)(cid:84)(cid:1) (cid:77)(cid:74)(cid:76)(cid:70)(cid:1) (cid:49)(cid:42)(cid:37)(cid:1) (cid:83)(cid:70)(cid:87)(cid:70)(cid:83)(cid:84)(cid:66)(cid:77)(cid:1) units, solar based automated module cleaning systems, high intensity DC lighting systems for working in confined spaces. (cid:46)(cid:86)(cid:77)(cid:85)(cid:74)(cid:71)(cid:86)(cid:70)(cid:77)(cid:1) (cid:81)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1) (cid:66)(cid:79)(cid:69)(cid:1) (cid:73)(cid:70)(cid:66)(cid:85)(cid:1) (cid:72)(cid:70)(cid:79)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:84)(cid:90)(cid:84)(cid:85)(cid:70)(cid:78)(cid:1) (cid:71)(cid:80)(cid:83)(cid:1) rural microgrid applications. (cid:38)(cid:87)(cid:66)(cid:77)(cid:86)(cid:66)(cid:85)(cid:74)(cid:79)(cid:72)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:85)(cid:70)(cid:68)(cid:73)(cid:79)(cid:80)(cid:14)(cid:70)(cid:68)(cid:80)(cid:79)(cid:80)(cid:78)(cid:74)(cid:68)(cid:1) (cid:84)(cid:85)(cid:80)(cid:83)(cid:66)(cid:72)(cid:70)(cid:1) (cid:80)(cid:81)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1) for utility scale. (cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90)(cid:1) (cid:81)(cid:66)(cid:83)(cid:85)(cid:79)(cid:70)(cid:83)(cid:1) (cid:80)(cid:71)(cid:1) (cid:85)(cid:73)(cid:70)(cid:1) (cid:36)(cid:77)(cid:70)(cid:66)(cid:79)(cid:1) (cid:36)(cid:80)(cid:66)(cid:77)(cid:1) (cid:36)(cid:70)(cid:79)(cid:85)(cid:83)(cid:70)(cid:1) (cid:88)(cid:74)(cid:85)(cid:73)(cid:1) (cid:42)(cid:42)(cid:53)(cid:13)(cid:1) Mumbai. (cid:42)(cid:80)(cid:53)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:34)(cid:42)(cid:1)(cid:66)(cid:81)(cid:81)(cid:77)(cid:74)(cid:68)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:84)(cid:1)(cid:71)(cid:80)(cid:83)(cid:1)(cid:85)(cid:73)(cid:70)(cid:1)(cid:54)(cid:85)(cid:74)(cid:77)(cid:74)(cid:85)(cid:90)(cid:15) (cid:36)(cid:80)(cid:77)(cid:77)(cid:66)(cid:67)(cid:80)(cid:83)(cid:66)(cid:85)(cid:74)(cid:87)(cid:70)(cid:1)(cid:66)(cid:81)(cid:81)(cid:83)(cid:80)(cid:66)(cid:68)(cid:73)(cid:1)(cid:88)(cid:74)(cid:85)(cid:73)(cid:1)(cid:80)(cid:85)(cid:73)(cid:70)(cid:83)(cid:1)(cid:72)(cid:77)(cid:80)(cid:67)(cid:66)(cid:77)(cid:1)(cid:81)(cid:77)(cid:66)(cid:90)(cid:70)(cid:83)(cid:84)(cid:1)(cid:85)(cid:80)(cid:1) address the aspects of climate change. The hyperlink www.tatapower.com for web page of the Company is 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, 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. 2. There are no pending or unresolved show cause/legal notices received from CPCB/SPCB as on end of FY19. Principle 7 1. (cid:1) (cid:1) (cid:1) (cid:1) (cid:1) 2. 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 a member of various trade and chamber associations. The major ones are: (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:116)(cid:1) (cid:36)(cid:80)(cid:79)(cid:71)(cid:70)(cid:69)(cid:70)(cid:83)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:79)(cid:1)(cid:42)(cid:79)(cid:69)(cid:86)(cid:84)(cid:85)(cid:83)(cid:90) (cid:47)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:66)(cid:77)(cid:1)(cid:52)(cid:66)(cid:71)(cid:70)(cid:85)(cid:90)(cid:1)(cid:36)(cid:80)(cid:86)(cid:79)(cid:68)(cid:74)(cid:77) (cid:42)(cid:79)(cid:69)(cid:74)(cid:66)(cid:1)(cid:38)(cid:79)(cid:70)(cid:83)(cid:72)(cid:90)(cid:1)(cid:38)(cid:89)(cid:68)(cid:73)(cid:66)(cid:79)(cid:72)(cid:70) (cid:38)(cid:77)(cid:70)(cid:68)(cid:85)(cid:83)(cid:74)(cid:68)(cid:66)(cid:77)(cid:1)(cid:51)(cid:70)(cid:84)(cid:70)(cid:66)(cid:83)(cid:68)(cid:73)(cid:1)(cid:66)(cid:79)(cid:69)(cid:1)(cid:37)(cid:70)(cid:87)(cid:70)(cid:77)(cid:80)(cid:81)(cid:78)(cid:70)(cid:79)(cid:85)(cid:1)(cid:34)(cid:84)(cid:84)(cid:80)(cid:68)(cid:74)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1) (cid:34)(cid:84)(cid:84)(cid:80)(cid:68)(cid:74)(cid:66)(cid:85)(cid:74)(cid:80)(cid:79)(cid:1)(cid:80)(cid:71)(cid:1)(cid:49)(cid:80)(cid:88)(cid:70)(cid:83)(cid:1)(cid:49)(cid:83)(cid:80)(cid:69)(cid:86)(cid:68)(cid:70)(cid:83) you through advocated/lobbied Have 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 does not engage in any form of lobbying 122 I Business Responsibility Report The Tata Power Company Limited is in place to enhance activities. Advocacy Policy 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. TPSDI is a flagship program with strategic intent of training atleast 25% of rural youths particularly from SC/ST communities. Also, the focus areas of Affirmative action program, such as Education, Employability, Entrepreneurship and Essential Amenities support the marginalized communities. The Company continues to support developing projects related to garment making unit at Maval (Maharashtra) and Fly ash brick making units established in Jojobera and Maithon (Jharkhand), both have incorporated effective use of fly ash into value proposition creating economic benefit to the community at large. Also, the financial inclusivity interventions have benefitted linkages to various Government schemes resulting in benefitting 3.43 lakh beneficiaries on socio- economic aspects. the programs/projects undertaken Are in-house government structures/any other organisation? through foundation/external NGO/ team/own Tata Power has a Community Relations function which sets the strategy and plan for the community development initiatives. Tata Power Community Development Trust (TPCDT), a registered trust formed by the Company is the implementing vehicle for Tata Power group entities. TPCDT partners with NGOs and Government organizations to leverage synergies in delivering community development initiatives under the 5 focus areas. 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 on an annual basis and reviewed by the CSR Committee of the Board under all 5 focus areas. This year, the Company also undertook Social Return on Investment study for 3 flagship initiatives and same would be undertaken for other interventions in the coming year. 100th Annual Report 2018-19 4. 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 2019, the Company has spent ` 12.66 crore on various community development projects under 5 thrust areas. The overall spent of Tata Power Group CSR interventions was ` 44.58 crore in FY19 including CSR expenses incurred by Joint Ventures (IEL & Powerlinks) which are considered as subsidiaries as per Companies Act 2013. Excluding IEL and Powerlinks, the CSR spent stood at ` 39.46 crore against the CSR obligation of ` 31.69 crore in FY19. 5. 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 every 3-5 years with the objective of going back to community. Every year, the Company implements programs with prior community consultation through teams. Based on previous year development of CSR plans have been developed and implemented to reach 24.67 lakh beneficiaries across 15 states. Principle 9 1. What percentage of customer complaints/consumer cases are pending as on the end of financial year. As on 31st March 2019, none of the customer complaints/ consumer cases beyond turnaround time are 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. 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 sub-stations and Customer Relations Centers. 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 2019. 4. Did your company carry out any consumer survey/ consumer satisfaction trends? indicator Customer Satisfaction Surveys are key parameters to measure customer satisfaction and dissatisfaction levels. These surveys are conducted on a yearly 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 FY19 is given below: Customer Residential Industrial Commercial Satisfaction (%) 86 89 91 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Business Responsibility Report I 123 The Tata Power Company Limited Independent Auditor’s Report To the Members of The Tata Power Company Limited Report on the Audit of the Consolidated Ind AS Financial Statements Opinion We have audited the accompanying consolidated Ind AS financial statements of The Tata Power Company Limited (hereinafter referred to as “the Holding Company”), its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”) its associates and joint ventures comprising of the consolidated Balance sheet as at March 31 2019, the consolidated Statement of Profit and Loss, including other comprehensive income, the consolidated Cash Flow Statement and the consolidated Statement of Changes in Equity for the year then ended, and notes to the consolidated Ind AS financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the consolidated Ind AS financial statements”). 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 other auditors on separate financial statements and on the other financial information of the subsidiaries, associates and joint ventures, the aforesaid consolidated Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“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 March 31, 2019, their consolidated profit including other comprehensive income, their consolidated cash flows and the consolidated statement of changes in equity for the year ended on that date. Basis for Opinion We conducted our audit of the consolidated Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements’ section of our report. We are independent of the Group in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the consolidated Ind AS financial statements. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the consolidated Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated Ind AS financial statements. The results of audit procedures performed by us and by other auditors of components not audited by us, as reported by them in their audit reports furnished to us by the management, including those procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated Ind AS financial statements. Key audit matters Accrual of Regulatory Deferrals (as described in note 18 of the financial statements) In the power distribution business of the Group, the tariff is determined by the regulator on cost plus return on equity basis wherein the cost is subject to prudential norms. The Group invoices its customers on the basis of pre-approved tariff which is based on budget and is subject to true ups to be adjusted in the future tariff. • • The Group recognizes revenue on the basis of tariff invoiced to consumers. As the Group is entitled to a fixed return on equity, the Group recognizes regulatory deferral for the shortage / excess compared to the entitled return on equity. The Group has recognized regulatory deferrals of ` 5,758.13 crore as at March 31, 2019. 124 I Consolidated Financials How our audit addressed the key audit matter Our audit procedures included considering the Group’s accounting policies with respect to accrual of regulatory deferrals and assessing compliance with Ind AS 114 “Regulatory Deferral Accounts”. We performed test of controls over accrual of regulatory deferrals through inspection of evidence of performance of these controls. • We performed the following tests of details: • Evaluated the key assumptions used by the Group by comparing it with prior years, past precedents and the opinion of management’s expert. 100th Annual Report 2018-19 Key audit matters Regulatory deferrals are determined based on tariff regulations and past tariff orders and are subject to verification and approval by the regulators. Further the costs incurred are subject to prudential checks and prescribed norms. Significant judgements are made in determining the regulatory deferrals including interpretation of tariff regulations. Further certain disallowances of claims have been challenged by the Group before higher authorities. Accrual of regulatory deferrals is a key audit matter considering the significance of the amount of regulatory deferrals and the significant judgements involved in the determination of accruals. How our audit addressed the key audit matter the • Considered independence, objectivity and competence of management’s expert. • For tariff orders received by the Group, we have assessed the impact recognized by the Group and for matters challenged by the Group, we have also assessed the management’s evaluation of the likely outcome of the dispute based on past precedents and / or advice of management’s expert. • We have assessed the disclosures in accordance with the requirements of Ind AS 114 “Regulatory Deferral Accounts”. • Recognition of tax credits (as described in note 12 of the financial statements) The Group has recognized Minimum Alternate Tax (MAT) credit receivable of ` 1,469.56 crore and unrecognized MAT credit receivable of ` 276.87 crore as at 31st March 2019. The Group also has unrecognized other deferred tax assets of ` 2,926.07 crore on operating losses incurred by certain subsidiaries and unrecognized other deferred tax assets of ` 309.73 crore on provision for diminution in value of investment classified as asset held for sale. The recognition of MAT credit and deferred tax assets (together referred to as “tax credits” hereinafter) is a key audit matter as the recoverability of such tax credits within the allowed time frame involves significant estimate of the financial projections, availability of sufficient taxable income in the future and significant judgements in the interpretation of tax regulations and tax positions adopted by the Group. • • Our audit procedures included considering the Group’s accounting policies with respect to recognition of tax credits in accordance with Ind AS 12 “Income Taxes”. We performed test of controls over recognition of tax credits through inspection of evidence of performance of these controls. We performed the following tests of details: • We involved our tax specialists who evaluated the Group’s tax positions by comparing it with prior years and past precedents. • We discussed the future business plans and financial projections with the Company. • We assessed the management’s long term financial projections and the key assumptions used in the projections by comparing it to the approved business plan and projections used for impairment assessment where applicable. • We have assessed the disclosures in accordance with the requirements of Ind AS 12 “Income Taxes”. • • • Impairment of Assets (as described in note 4,5 and 6 of the financial statements) As per the requirements of Ind AS 36, the Group tests the Goodwill acquired in business combination for impairment annually. For other assets, the Company assesses at the end of every reporting period, whether there is any indication that an asset or cash generating unit (CGU) may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset or CGU. The determination of recoverable amount, being the higher of fair value less costs to sell and value-in-use involves significant estimates, assumptions and judgements of the long term financial projections. During the earlier years, the Group has recognized impairment provision with respect to Mundra CGU (including coal mines and related infrastructure), hydro power plant in Georgia and a generating unit in Trombay. During the year, as the indication exists, the Group has reassessed its impairment assessment with respect to the specified CGUs. The Group is also carrying a Goodwill of `1,641.57 crore relating to the acquisition of renewable energy businesses. Impairment of assets and goodwill is a key audit matter considering the significance of the carrying value, long term estimation and the significant judgements involved in the impairment assessment. • impairment Our audit procedures included considering the Group’s accounting policies with respect to in accordance with Ind AS 36 “Impairment of assets”. We performed test of controls over impairment process through inspection of evidence of performance of these controls. We performed the following tests of details: the management’s • We obtained assessment. impairment • We evaluated the key assumptions including projected generation, coal prices, exchange rate, energy prices post power purchase agreement period and weighted average cost of capital by comparing them with prior years and external data, where available. • We have obtained and evaluated the sensitivity analysis. We assessed the disclosures in accordance with Ind AS 36 “Impairment of assets”. Consolidated Financials I 125 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited How our audit addressed the key audit matter • Key audit matters Related Party Transactions (as described in note17 and 38 of the financial statements) During the year, the Group has sold its investments in shares of Tata Communications Limited and Panatone Finvest Limited to Tata Sons Private Limited for a total consideration of ` 1,542.61 crore and ` 613.49 crore respectively. Further, during the previous year, the Board of Directors of the Holding Company had approved sale of its Strategic Engineering Division (SED) to Tata Advanced Systems Limited, a wholly owned subsidiary of Tata Sons Private Limited at an enterprise valuation of `2,230 crore (including `1,190 crore contingent upon achieving certain milestones). The transaction is subject to regulatory and necessary approvals. • • Our audit procedures the compliance with the various requirements for entering in to such related party transactions. included considering We performed test of controls over related party transactions inspection of evidence of performance of these controls. through We performed the following tests of details: • We have read the valuation reports and fairness opinion obtained from independent valuers and assessed the objectivity and competence of the independent valuers. Determination of transaction price for such related party transactions outside the normal course of business is a key audit matter considering the significance of the transaction value and the significant judgements involved in determining the transaction value. • We have read the approvals obtained from Audit Committee, Board of Directors, Shareholders and all other regulatory approvals for the transactions. • We have assessed the disclosures in accordance with Ind AS 24 “Related Party Disclosures”. Other Information, such as “Information Other than the Financial Statements and Auditor’s Report Thereon The Holding Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the consolidated Ind AS financial statements and our auditor’s report thereon. Our opinion on the consolidated Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the consolidated Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management for the Consolidated Ind AS Financial Statements The Holding Company’s Board of Directors is responsible for the preparation and presentation of these consolidated Ind AS financial statements in terms of the requirements of 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 consolidated 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) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. 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 of the assets of the Group and of its associates and joint ventures 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 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 consolidated Ind AS 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 Holding Company, as aforesaid. In preparing the consolidated financial statements, the respective Board of Directors of the companies included in the Group and of its associates and joint ventures are responsible for assessing the ability of the Group and of its associates and joint ventures to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those respective Board of Directors of the companies included in the Group and of its associates and joint ventures are also responsible for overseeing the financial reporting process of the Group and of its associates and joint ventures. 126 I Consolidated Financials 100th Annual Report 2018-19 Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the consolidated Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated Ind AS financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • • • • • • Identify and assess the risks of material misstatement of the consolidated Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls system in place and the operating effectiveness of such controls. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group and its associates and joint ventures to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group and its associates and joint ventures to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the consolidated Ind AS financial statements, including the disclosures, and whether the consolidated Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group and its associates and joint ventures of which we are the independent auditors and whose financial information we have audited, to express an opinion on the consolidated Ind AS financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the consolidated financial statements of which we are the independent auditors. For the other entities included in the consolidated financial statements, which have been audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion. We communicate with those charged with governance of the Holding Company and such other entities included in the consolidated Ind AS financial statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 127 The Tata Power Company Limited Other Matter (a) We did not audit the financial statements and other financial information, in respect of twelve subsidiaries, whose Ind AS financial statements include total assets of ` 10,336.49 crore as at March 31, 2019 and total revenues of ` 9,021.54 crore and net cash outflows of ` 91.74 crore for the year ended on that date. These Ind AS financial statement and other financial information have been audited by other auditors, which financial statements, other financial information and auditor’s reports have been furnished to us by the management. The consolidated Ind AS financial statements also include the Group’s share of net profit of ` 1,038.12 crore for the year ended March 31, 2019, as considered in the consolidated Ind AS financial statements, in respect of seven associates and joint ventures, whose financial statements, other financial information have been audited by other auditors and whose reports have been furnished to us by the Management. 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 sub-sections (3) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, joint ventures and associates, is based solely on the report of such other auditors. (b) (c) The comparative Ind AS financial information of the Company for the corresponding year as at April 1, 2017 included in the financial statements, were audited by the predecessor auditor whose report for the year ended March 31, 2017 dated 19th May, 2017 expressed a modified opinion on those financial statements. The comparative financial information is based on the previous consolidated financial statements prepared in accordance with the recognition and measurement principles of the Accounting Standards specified under section 133 of the Companies Act, 2013, read with relevant rules issued thereunder and other accounting principles generally accepted in India, and is adjusted for the differences as explained in note 43 of the financial statements, which have been audited by us. The accompanying consolidated Ind AS financial statements include unaudited financial statements and other unaudited financial information in respect of one subsidiary, whose financial statements and other financial information reflect total assets of ` 52.07 crore as at March 31, 2019 and total revenues of ` Nil and net cash inflows of ` 22.86 crore for the year ended on that date. These unaudited financial statements and other unaudited financial information have been furnished to us by the management. The consolidated Ind AS financial statements also include the Group’s share of net profit of ` 20.08 crore for the year ended March 31, 2019, as considered in the consolidated Ind AS financial statements, in respect of twelve associates and joint ventures, whose financial statements, other financial information have not been audited and whose unaudited financial statements, other unaudited financial information have been furnished to us by the Management. Our opinion, in so far as it relates amounts and disclosures included in respect of these subsidiaries, joint ventures and associates, and our report in terms of sub-sections (3) of Section 143 of the Act in so far as it relates to the aforesaid subsidiaries, joint ventures and associates, is based solely on such unaudited financial statement and other unaudited financial information. In our opinion and according to the information and explanations given to us by the Management, these financial statements and other financial information are not material to the Group. Our opinion above on the consolidated Ind AS financial statements, 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 statements and other 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 report of the other auditors on separate financial statements and the other financial information of subsidiaries, associates and joint ventures, as noted in the ‘other matter’ paragraph we report, to the extent applicable, that: (a) We/the other auditors whose report we have relied upon have sought and 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) (c) In our opinion, proper books of account as required by law relating to preparation of the aforesaid consolidation of the financial statements have been kept so far as it appears from our examination of those books and reports of the other auditors; The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Statement of 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 books of account maintained for the purpose of preparation of the consolidated Ind AS financial statements; (d) In our opinion, the aforesaid consolidated Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; 128 I Consolidated Financials 100th Annual Report 2018-19 (e) On the basis of the written representations received from the directors of the Holding Company as on March 31, 2019 taken on record by the Board of Directors of the Holding Company and the reports of the statutory auditors who are appointed under Section 139 of the Act, of its subsidiary companies, associate companies and joint ventures, none of the directors of the Group’s companies, its associates and joint ventures incorporated in India is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act; (f ) With respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting with reference to these consolidated Ind AS financial statements of the Holding Company and its subsidiary companies, associate companies and joint ventures incorporated in India, refer to our separate Report in “Annexure 1” to this report; In our opinion and based on the consideration of reports of other statutory auditors of the subsidiaries, associates and joint ventures incorporated in India, the managerial remuneration for the year ended March 31, 2019 has been paid / provided by the Holding Company, its subsidiaries, associates and joint ventures incorporated in India to their directors in accordance with the provisions of section 197 read with Schedule V to the Act; (g) 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 and based on the consideration of the report of the other auditors on separate financial statements as also the other financial information of the subsidiaries, associates joint ventures, as noted in the ‘Other matter’ paragraph: i. ii. iii. The consolidated Ind AS financial statements disclose the impact of pending litigations on its consolidated financial position of the Group, its associates and joint ventures in its consolidated Ind AS financial statements – Refer Note 35 to the consolidated Ind AS financial statements; 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 – Refer Note 22 and 24 to the consolidated Ind AS financial statements in respect of such items as it relates to the Group, its associates and joint ventures and the Group’s share of net profit in respect of its associates; There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Holding Company, its subsidiaries, associates and joint ventures incorporated in India during the year ended March 31, 2019. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 per Sudhir Soni Partner Membership Number: 41870 UDIN: 19041870AAAAAK8488 Place : Mumbai Date : 2nd May, 2019 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 129 The Tata Power Company Limited Annexure to the Independent Auditor’s Report of even date on the Consolidated Financial Statements of The Tata Power Company Limited Report on the Internal Financial Controls 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 financial statements of The Tata Power Company Limited as of and for the year ended March 31, 2019, we have audited the internal financial controls over financial reporting of The Tata Power Company Limited (hereinafter referred to as the “Holding Company”) 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 Holding Company, 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 Holding 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. 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 Act. Auditor’s Responsibility Our responsibility is to express an opinion on the company’s internal financial controls over financial reporting with reference to these consolidated financial statements 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”) and the Standards on Auditing, both, issued by Institute of Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, 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 with reference to these consolidated financial statements 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 over financial reporting with reference to these consolidated financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these consolidated financial statements, 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 in terms of their reports referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these consolidated financial statements. Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Financial Statements A company’s internal financial control over financial reporting with reference to these consolidated financial statements 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 with reference to these consolidated financial statements 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 With Reference to these Consolidated Financial Statements Because of the inherent limitations of internal financial controls over financial reporting with reference to these consolidated financial statements, 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 with reference to these consolidated financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these consolidated financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 130 I Consolidated Financials 100th Annual Report 2018-19 Opinion In our opinion, the Holding Company, its subsidiary companies, its associate companies and joint ventures, which are companies incorporated in India, have, maintained in all material respects, adequate internal financial controls over financial reporting with reference to these consolidated financial statements and such internal financial controls over financial reporting with reference to these consolidated financial statements were operating effectively as at March 31,2019, based on the internal control over financial reporting criteria established by the Holding 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. Other Matters Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over financial reporting with reference to these consolidated financial statements of the Holding Company, insofar as it relates to these twelve subsidiary companies which are companies incorporated in India, is based on the corresponding reports of the auditors of such subsidiary companies incorporated in India. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 per Sudhir Soni Partner Membership Number: 41870 UDIN: 19041870AAAAAK8488 Place : Mumbai Date : 2nd May, 2019 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 131 The Tata Power Company Limited Consolidated Balance Sheet as at 31st March, 2019 Notes Page As at 31st March, 2019 ` crore As at 31st March, 2018* ` crore As at 1st April, 2017* ` crore ASSETS 6 a. 4 a. 4 b. 5 a. 5 b. Non-current Assets Property, Plant and Equipment .................................................................................... (a) Capital Work-in-Progress (Refer Note 36 b) .............................................................. (b) Investment Property ........................................................................................................ (c) (d) Goodwill ............................................................................................................................... (e) Other Intangible Assets................................................................................................... Intangible Assets under Development...................................................................... (f ) Investments accounted for using the Equity Method ......................................... (g) Financial Assets (h) 6 c. Other Investments ................................................................................................. (i) 7 Trade Receivables ................................................................................................... (ii) 8 Loans ........................................................................................................................... (iii) 9 Finance Lease Receivables .................................................................................. (iv) 10 (v) Other Financial Assets .......................................................................................... Non-current Tax Assets (Net) ......................................................................................... 11 (i) Deferred Tax Assets (Net) ................................................................................................ 12 a. (j) (k) 13 Other Non-current Assets .............................................................................................. Total Non-current Assets ......................................................................................................... Current Assets (a) (b) Inventories ........................................................................................................................... Financial Assets .................................................................................................................. Investments ............................................................................................................. (i) (ii) Trade Receivables ................................................................................................... (iii) Unbilled Revenue ................................................................................................... (iv) Cash and Cash Equivalents ................................................................................. 16 a. Bank Balances other than (iv) above ............................................................... 16 b. (v) (vi) Loans ........................................................................................................................... (vii) Finance Lease Receivables .................................................................................. (viii) Other Financial Assets .......................................................................................... (c) Current Tax Assets (Net) .................................................................................................. (d) Other Current Assets ........................................................................................................ Total Current Assets ................................................................................................................... Assets Classified as Held For Sale ............................................................................................ 17 a. Total Assets before Regulatory Deferral Account ....................................................... Regulatory Deferral Account - Assets ............................................................................... TOTAL ASSETS ........................................................................................................................................... EQUITY AND LIABILITIES 8 9 10 11 13 15 7 14 18 Equity Equity Share Capital ......................................................................................................... 19 a. (a) Unsecured Perpetual Securities ................................................................................... 19 b. (b) (c) 20 Other Equity ........................................................................................................................ Equity attributable to Shareholders of the Company ............................................... Non-controlling Interests........................................................................................................ Total Equity .................................................................................................................................... LIABILITIES 21 Non-current Liabilities Financial Liabilities (a) Borrowings................................................................................................................ (i) (ii) Trade Payables ......................................................................................................... 22 (iii) Other Financial Liabilities .................................................................................... 23 (b) Non-current Tax Liabilities (Net) .................................................................................. Deferred Tax Liabilities (Net) ......................................................................................... 12 b. (c) 24 (d) Provisions ............................................................................................................................. 25 (e) Other Non-current Liabilities ........................................................................................ Total Non-current Liabilities .................................................................................................. Current Liabilities (a) Financial Liabilities ............................................................................................................ Borrowings................................................................................................................ (i) (ii) Trade Payables ......................................................................................................... (iii) Other Financial Liabilities .................................................................................... (b) Current Tax Liabilities (Net) ............................................................................................ Provisions ............................................................................................................................. (c) (d) Other Current Liabilities .................................................................................................. Total Current Liabilities ............................................................................................................ Liabilities directly associated with Assets Classified as Held For Sale ................................. 17 b. Total Liabilities before Regulatory Deferral Account ................................................ Regulatory Deferral Account - Liability ............................................................................ TOTAL EQUITY AND LIABILITIES ...................................................................................................... 22 23 24 25 18 26 145 149 150 151 153 166 167 168 168 170 171 172 175 176 176 167 177 177 168 168 170 171 175 178 181 183 183 184 186 187 188 173 188 195 196 187 188 188 195 178 181 41,101.50 2,575.70 Nil 1,641.57 1,561.82 Nil 11,989.69 861.41 192.99 144.73 565.62 316.75 238.01 89.49 1,358.07 62,637.35 1,706.42 166.98 4,445.26 837.85 645.45 142.00 116.46 37.90 241.59 2.67 1,881.85 10,224.43 5,542.12 78,403.90 5,758.13 84,162.03 270.50 1,500.00 16,450.66 18,221.16 2,166.66 20,387.82 31,139.23 22.75 687.31 3.74 1,056.81 333.60 1,873.75 35,117.19 13,875.38 5,481.49 6,480.79 150.22 177.00 1,499.64 27,664.52 992.50 63,774.21 Nil 84,162.03 * Restated (Refer Note 43) See accompanying notes to the Consolidated Financial Statements As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. 132 I Consolidated Financials PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. 41,431.61 1,652.60 Nil 1,641.57 1,583.08 Nil 11,111.66 881.11 190.05 131.73 574.76 273.68 167.59 118.17 1,577.31 61,334.92 1,623.08 436.16 2,788.93 810.09 1,061.16 124.62 784.80 34.27 401.59 14.77 1,512.32 9,591.79 4,778.70 75,705.41 6,304.56 82,009.97 270.50 1,500.00 14,629.38 16,399.88 2,015.29 18,415.17 22,356.31 21.00 647.31 3.74 516.56 300.00 1,841.48 25,686.40 18,827.28 5,609.82 9,942.98 160.38 193.44 1,785.72 36,519.62 903.78 63,109.80 485.00 82,009.97 41,404.21 1,923.24 2.49 1,653.57 1,705.80 254.68 9,496.09 1,279.14 187.92 137.32 573.47 395.34 146.35 124.12 2,058.33 61,342.07 1,599.56 1,097.78 3,832.12 1,081.92 835.22 119.08 677.57 39.16 181.23 31.68 1,293.01 10,788.33 1,919.47 74,049.87 7,117.70 81,167.57 270.50 1,500.00 12,651.99 14,422.49 1,868.99 16,291.48 25,142.96 35.57 550.94 3.74 1,751.14 270.68 1,668.51 29,423.54 16,279.79 5,529.00 10,586.63 122.04 207.69 2,065.05 34,790.20 Nil 64,213.74 662.35 81,167.57 For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary 100th Annual Report 2018-19 Consolidated Statement of Profit and Loss for the year ended 31st March, 2019 I II III IV V VI VII VIII IX X XI XII XIII XIV XV Notes Page Revenue from Operations ......................................................................................................................................................................................................................... Other Income ................................................................................................................................................................................................................................................. Total Income ................................................................................................................................................................................................................................................. Expenses Cost of Power Purchased .................................................................................................................................................................................................................. Cost of Fuel (Refer Note 44) ............................................................................................................................................................................................................. Transmission Charges ........................................................................................................................................................................................................................ Raw Material Consumed ................................................................................................................................................................................................................... Purchase of Finished Goods, Spares and Shares ...................................................................................................................................................................... (Increase)/Decrease in Stock-in-Trade and Work in Progress .............................................................................................................................................. Employee Benefits Expense (Net) .................................................................................................................................................................................................. Finance Costs ........................................................................................................................................................................................................................................ Depreciation and Amortisation Expenses .................................................................................................................................................................................. Other Expenses .................................................................................................................................................................................................................................... Total Expenses ............................................................................................................................................................................................................................................. Profit/(Loss) Before Movement in Regulatory Deferral Balances, Exceptional Items, Tax and Share of Net Profit of Associates and Joint Ventures accounted for using the Equity Method.......................................................................................................................................................... Add/(Less): Net movement in Regulatory Deferral Balance ........................................................................................................................................................... Add/(Less): Net movement in Regulatory Deferral Balance in respect of earlier years ........................................................................................................ 27 28 29 29 30 31 5 b. 32 Profit/(Loss) Before Exceptional Items,Tax and 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 ....................................................................................... Profit Before Exceptional Items and Tax ......................................................................................................................................................................................... Add/(Less): Exceptional Items Reversal of Impairment of Mundra CGU (Net) .......................................................................................................................................................................... Impairment for Investments in Joint Venture and Related Obligation ............................................................................................................................ Impairment in respect of Other Property, Plant and Equipment and Goodwill ........................................................................................................... 4 a (i), (ii), 5 a & 17 b (iii), (c) 44 6 b (iv) 6 b (iii) Provision for Contingencies............................................................................................................................................................................................................. Gain on Sale of Investment in Associates ................................................................................................................................................................................... Damages towards contractual obligations ................................................................................................................................................................................ 6 b (i) 6 b (ii) Profit Before Tax ......................................................................................................................................................................................................................................... Tax Expense/(Credit) Current Tax ............................................................................................................................................................................................................................................ Deferred Tax ......................................................................................................................................................................................................................................... Deferred Tax relating to earlier years ........................................................................................................................................................................................... Deferred Tax (Recoverable)/Payable ............................................................................................................................................................................................. 33 a. 12 c. 33 b. 196 202 203 203 203 204 151 205 165 165 148 238 165 165 205 174 207 (i) Profit for the Year from Continuing Operations .......................................................................................................................................................................... Loss before tax from Discontinued Operations .......................................................................................................................................................................... Tax Expense of Discontinued Operations Add/(Less): Current Tax ............................................................................................................................................................................................................................................. Deferred Tax .......................................................................................................................................................................................................................................... Tax Expense/(Credit) of Discontinued Operations .................................................................................................................................................................... Loss for the Year from Discontinued Operations ........................................................................................................................................................................ Profit/(Loss) for the Year ......................................................................................................................................................................................................................... Other Comprehensive Income/(Expenses) - Continuing Operations Items that will not be reclassified to profit or loss A (a) Remeasurement of the Defined Benefit Plans ......................................................................................................................... (b) Equity Instruments classified FVTOCI .......................................................................................................................................... (c) Gain on sale of Investment classified at FVTOCI ...................................................................................................................... (d) Assets Classified as Held For Sale - Equity Instruments classified at FVTOCI................................................................. Income tax relating to items that will not be reclassified to profit or loss (a) Current Tax............................................................................................................................................................................................. (b) Deferred Tax .......................................................................................................................................................................................... Share of Other Comprehensive Income/(Loss) of Associates and Joint Ventures accounted for using the Equity Method (Net of tax) ....................................................................................................................................................................................... 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/(Loss) of Associates and Joint Ventures ....................................................... Add/(Less): (iii) (ii) (i) B Other Comprehensive Income/Expense - Discontinued Operations A Add/(Less): B Add/(Less): (i) (ii) (i) Items that will not be reclassified to profit or loss ............................................................................................................................. Income tax relating to items that will not be reclassified to profit or loss ................................................................................ Items that will be reclassified to profit or loss ..................................................................................................................................... XVI Total Comprehensive Income for the Year (XIV + XV)............................................................................................................................................................... Profit for the year attributable to: - Owners of the Company ............................................................................................................................................................................................................... - Non-controlling interest ................................................................................................................................................................................................................ Other Comprehensive Income 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 ................................................................................................................................................................................................................ XVII Basic and Diluted Earnings Per Equity Share (of ` 1/- each) (`) (i) From Continuing Operations before net movement in regulatory deferral balances ............................................................................................... (ii) From Continuing Operations after net movement in regulatory deferral balances ................................................................................................... (iii) From Discontinued Operations ...................................................................................................................................................................................................... (iv) Total Operations after net movement in regulatory deferral balances ........................................................................................................................... * Restated (Refer Note 43) See accompanying notes to the Consolidated Financial Statements As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 PRAVEER SINHA CEO & Managing Director DIN: 01785164 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. 24 188 33 a (iv) 12 c. 207 174 33 a (iv) 207 37 210 For the year ended 31st March, 2019 ` crore 29,558.64 395.83 29,954.47 For the year ended 31st March, 2018 * ` crore 26,840.27 432.69 27,272.96 6,359.53 11,640.02 248.23 919.35 345.22 24.37 1,339.05 4,170.00 2,393.13 2,260.15 29,699.05 255.42 (340.19) 274.26 (65.93) 189.49 1,287.02 1,476.51 Nil Nil (106.41) (45.00) 1,897.24 Nil 1,745.83 3,222.34 584.78 544.02 18.91 (491.62) 656.09 2,566.25 (191.82) (71.92) 5.94 (65.98) (125.84) 2,440.41 (23.91) 2.68 1.66 (31.05) 6.81 (0.06) (1.37) 187.18 23.24 165.18 (1.14) 0.40 Nil (0.74) 2,604.85 2,190.94 249.47 2,440.41 164.87 (0.43) 164.44 2,355.81 249.04 2,604.85 8.30 8.15 (0.46) 7.69 5,597.32 10,009.86 281.99 748.97 181.68 (8.51) 1,381.92 3,761.48 2,346.17 2,374.11 26,674.99 597.97 (409.85) Nil (409.85) 188.12 1,553.91 1,742.03 1,886.72 (527.54) (149.57) Nil Nil (107.08) 1,102.53 2,844.56 663.69 (840.23) Nil 338.51 161.97 2,682.59 (85.87) (17.36) 3.23 (14.13) (71.74) 2,610.85 (4.75) (262.22) Nil Nil (50.51) 391.87 (10.74) 29.08 0.41 93.14 0.85 Nil Nil 0.85 2,704.84 2,408.30 202.55 2,610.85 94.00 (0.01) 93.99 2,502.30 202.54 2,704.84 9.74 8.75 (0.26) 8.49 For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary Consolidated Financials I 133 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Consolidated Statement of Cash Flows for the year ended 31st March, 2019 A. Cash Flow from Operating Activities Profit/(Loss) before tax from Continuing Operations ................................................................................... Profit/(Loss) before tax from Discontinued Operations .............................................................................. 3,222.34 (191.82) 2,844.56 (85.87) For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 * ` crore Adjustments to reconcile Profit Before Tax to Net Cash Flows: Depreciation and Amortisation Expense ............................................................................................... Impairment in respect of Other Property, Plant & Equipment and Goodwill .......................... Transfer to Contingency Reserve .............................................................................................................. Reversal of Impairment of Mundra CGU (Net) ..................................................................................... Impairment of Investments in Joint Ventures ...................................................................................... (Gain)/Loss on Disposal of Property, Plant and Equipment (Net) ................................................. Finance Cost (Net of Capitalisation) ........................................................................................................ Interest Income ............................................................................................................................................... Dividend Income ............................................................................................................................................ (Gain)/Loss on Sale/Fair Value of Current Investments measured at FVTPL ............................. (Gain)/Loss on Sale of Investment in Associate accounted for using the equity method ... Loss on Sale of Investment in Joint Venture accounted for using the equity method ......... Allowances for Doubtful Debts and Advances (Net) ......................................................................... Amortisation of Premium Paid on Leasehold Land ........................................................................... Provision for Losses ....................................................................................................................................... Impairment Non-current Investments ................................................................................................... Provision for Warranties ............................................................................................................................... Damages towards Contractual Obligation ........................................................................................... Delayed Payment Charges .......................................................................................................................... Transfer from Capital Grants ....................................................................................................................... Amortisation of Service Line Contributions ......................................................................................... Deferred Revenue .......................................................................................................................................... Guarantee Commission ................................................................................................................................ Share of Net Profit of Associates and Joint Ventures accounted for using the equity method . Effect of Exchange Fluctuation (Net) ....................................................................................................... Working Capital Adjustments: Adjustment for (increase)/decrease in Assets: Inventories ........................................................................................................................................................ Trade Receivables ........................................................................................................................................... Unbilled Revenue ........................................................................................................................................... Finance Lease Receivables .......................................................................................................................... Loans- Current ................................................................................................................................................. Loans-Non Current......................................................................................................................................... Other Current Assets ..................................................................................................................................... Other Non-current Assets ........................................................................................................................... Other Financial Assets - Current ............................................................................................................... Other Financial Assets - Non-current ...................................................................................................... Regulatory Deferral Account - Assets ..................................................................................................... Current Investments Purchased ................................................................................................................................................ Proceeds from sale ............................................................................................................................... Non-Current Investments Proceeds from sale ............................................................................................................................... Movement in Operating Asset .................................................................................................................. Adjustments for increase / (decrease) in Liabilities: Trade Payables ................................................................................................................................................. Other Current Liabilities ............................................................................................................................... Other Non-current Liabilities ..................................................................................................................... Other Financial Liabilities - Current ......................................................................................................... Other Financial Liabilities - Non-current ................................................................................................ Regulatory Deferral Account - Liability .................................................................................................. Current Provisions .......................................................................................................................................... Non-current Provisions ................................................................................................................................ Movement in Operating Liability ............................................................................................................. Cash Flow from/(used in) Operations ................................................................................................................ Income-tax Paid .............................................................................................................................................. Net cash flow from/(used in) Operating Activities.................................................................................. 134 I Consolidated Financials 2,393.13 106.41 16.00 Nil Nil 31.96 4,206.33 (76.26) (15.09) (48.92) (1,897.24) Nil 72.54 10.48 Nil (1.30) 15.14 Nil (87.48) (3.56) (82.96) 60.48 (9.83) (1,287.02) (30.37) (85.19) (1,649.03) 84.93 5.51 46.13 (24.25) (45.22) 238.59 138.46 (15.66) 715.53 (407.81) 518.63 6.26 (42.56) (315.50) (79.97) 28.11 74.61 (485.00) (75.19) 45.25 2,377.34 149.57 14.00 (1,886.72) 527.54 (4.54) 3,770.33 (120.43) (18.67) (59.58) Nil Nil 16.40 0.17 (0.21) 6.00 13.65 107.08 (26.48) (17.87) (80.74) 32.11 (9.77) (1,553.91) 13.32 3,372.44 6,402.96 3,248.59 6,007.28 (146.83) 715.15 (43.30) 3.60 (43.88) 8.56 (392.78) 104.44 (65.86) (4.88) 630.01 Nil 36.65 Nil (473.12) 800.88 86.44 (208.71) 96.10 207.34 93.40 (171.00) 4.76 49.21 (850.25) 5,079.59 (505.80) 4,573.79 157.54 6,965.70 (601.85) 6,363.85 A 100th Annual Report 2018-19 Consolidated Statement of Cash Flows for the year ended 31st March, 2019 For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 * ` crore B. Cash Flow from Investing Activities Capital Expenditure on Property, Plant and Equipment (including capital advances) ......... Proceeds from Sale of Property, Plant and Equipment..................................................................... Purchase of Current Investments ............................................................................................................. Proceeds from Sale of Current Investments ......................................................................................... Consideration transferred on business combinations ...................................................................... Purchase of Non-current Investments Joint Ventures ........................................................................................................................................ Others ....................................................................................................................................................... Proceeds from Sale of Non-current Investments (Including advance) Joint Ventures ........................................................................................................................................ Associates ................................................................................................................................................ Others ....................................................................................................................................................... Inter-corporate Deposits (Net) .................................................................................................................. Interest Received ............................................................................................................................................ Amount (paid)/received back under Contractual Obligation ........................................................ Delayed Payment Charges Received ....................................................................................................... Guarantee Commission Received ............................................................................................................ Dividend Received Joint Ventures ........................................................................................................................................ Associates ................................................................................................................................................ Others ....................................................................................................................................................... Bank Balance not considered as Cash and Cash Equivalents (with maturity more than three months) .................................................................................................................................................. Net Cash Flow from/(used in) Investing Activities .................................................................................. B C. Cash Flow from Financing Activities Proceeds from Issue of Shares including shares issued to Minority Shareholders ................. Proceeds from Capital/Service Line Contributions ............................................................................ Payment towards acquisition of stake from Non-Controlling interest ....................................... Proceeds from Non-current Borrowings ................................................................................................ Repayment of Non-current Borrowings ................................................................................................. Proceeds from Current Borrowings ......................................................................................................... Repayment of Current Borrowings .......................................................................................................... Finance Cost Paid ........................................................................................................................................... Dividend Paid................................................................................................................................................... Additional Income-tax on Dividend Paid .............................................................................................. Distribution on Unsecured Perpetual Securities ................................................................................. 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) .......................................................... Effect of Exchange Fluctuation on Cash and Cash Equivalents ........................................................ Cash and Cash Equivalents as at 31st March (Closing Balance) ....................................................... C (A+B+C) Notes: 1. Cash and Cash Equivalents include: (a) Cash on Hand ...................................................................................................................................................... (b) Cheques on Hand ............................................................................................................................................... (c) Balance with banks In Current Accounts .................................................................................................................................... (i) (ii) In deposit accounts (with original maturity of three months or less) ............................................ (d) Bank Overdraft .................................................................................................................................................... (e) Book Overdraft .................................................................................................................................................... Cash and Cash Equivalents related to Continuing Operations ............................................................. (a) Balances with banks (i) In Current Accounts ............................................................................................................................................. (b) Book Overdraft ............................................................................................................................................................... Cash and Cash Equivalents relating to Discontinued Operations ...................................................... Cash and Cash Equivalent pertaining to Asset Classified as Held For Sale .............................................. * Restated (Refer Note 43) See accompanying notes to the Consolidated Financial Statements As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. (3,576.22) 42.91 (20,728.77) 20,936.88 (13.14) (22.92) (25.00) 349.31 2,157.67 0.10 83.61 139.35 Nil 34.33 9.59 293.49 9.74 5.43 (15.60) (319.24) Nil 97.00 Nil 10,867.07 (9,978.26) 34,846.52 (36,376.94) (3,976.10) (410.36) (82.38) (171.00) (5,184.45) (929.90) 944.52 46.90 61.52 (3,560.37) 56.40 (19,898.26) 20,591.92 Nil (106.22) (156.28) 56.61 Nil 356.43 (50.33) 124.11 31.47 26.32 14.38 976.09 14.82 10.59 (5.54) (1,517.86) 0.15 84.63 Nil 9,750.53 (11,224.74) 24,579.61 (22,668.41) (4,570.38) (416.53) (90.12) (171.00) (4,726.26) 119.73 818.58 6.21 944.52 As at 31st March, 2019 ` crore 0.99 11.69 As at 31st March, 2018* ` crore 1.07 28.41 320.87 311.90 (590.89) Nil 54.56 6.13 (0.02) 6.11 0.85 61.52 905.58 126.10 (119.25) (0.08) 941.83 2.73 (0.04) 2.69 Nil 944.52 For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary Consolidated Financials I 135 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S l a t o T e r o r c ` - n o N s t s e r e t n I g n i l l o r t n o c s t s e r e t n I g n i l l o r t n o C f o n o i t r o p w o fl h s a c e v i t c e ff E e m o c n The Tata Power Company Limited l i l i l i l i l i l i l i N N N N N N N l i N . ) 2 3 1 2 5 ( . ) 8 8 0 1 1 ( . 2 3 7 1 6 8 1 , . 4 4 4 6 1 . 5 8 4 0 6 2 , . 1 4 0 4 4 2 , l i N . 7 4 9 4 2 ) 3 4 0 ( . . 4 0 9 4 2 ) 7 6 7 9 ( . l i l i l i l i l i l i l i N N N N N N N l i N . 6 6 6 6 1 2 , . 4 9 0 9 1 2 , . 7 8 4 6 1 . 1 8 5 5 3 2 , l i l i l i l i l i l i l i N N N N N N N l i N . ) 5 6 3 2 4 ( . ) 8 8 0 1 1 ( . 6 6 0 5 4 6 1 , . 8 9 0 2 5 4 1 , . 9 9 8 6 8 1 , . 9 9 1 5 6 2 1 , . 9 9 3 9 . 5 8 0 1 6 2 , . 4 8 4 0 7 2 , l i N l i N l i N 5 1 0 . ) 9 0 2 1 ( . . ) 5 1 7 5 4 ( . ) 6 0 2 1 1 ( . 7 6 4 4 6 6 1 , . 5 5 2 0 2 ) 1 0 0 ( . . 4 5 2 0 2 5 1 0 . ) 1 5 3 3 ( . ) 8 8 2 2 ( . l i N l i N l i N l i N . 9 2 5 1 0 2 , . 0 3 8 0 4 2 , 0 0 4 9 . . 0 3 2 0 5 2 , l i N l i N l i N l i N . 9 7 0 1 . ) 4 6 3 2 4 ( . ) 6 0 2 1 1 ( . 8 3 9 2 6 4 1 , . 7 6 4 4 6 6 1 , . 9 2 5 1 0 2 , . 8 3 9 2 6 4 1 , ) 3 6 0 ( . e g d e h l i N ) 3 6 0 ( . ) 3 6 0 ( . l i N l i N l i N l i N l i N l i N l i N ) 6 2 1 ( . ) 6 2 1 ( . l i N 6 2 1 . 6 2 1 . l i l i l i l i l i l i l i l i l i N N N N N N N N N l i N l i N I e v i s n e h e r p m o C r e h t O f o m e t I n g i e r o F t n e m u r t s n I y t i u q E l i N 3 1 0 3 . 3 1 0 3 . l i N l i N l i N l i N l i N l i N l i N . 5 5 7 6 3 . 5 5 7 6 3 l i N . 7 1 9 0 2 . 7 1 9 0 2 l i l i l i l i l i l i l i l i l i N N N N N N N N N . 2 4 7 3 3 e v r e s e R y c n e r r u C n o i t a l s n a r T . 3 7 0 0 1 e m o c n I l i N . 7 8 0 8 7 8 0 8 . l i N l i N l i N . ) 7 3 6 2 2 ( l i N l i N l i N ) 7 7 4 4 ( . ) 7 7 4 4 ( . l i N ) 6 8 7 2 ( . ) 6 8 7 2 ( . l i l i l i N N N . 5 1 1 7 7 l i l i l i l i l i N N N N N r e h t O h g u o r h t e v i s n e h e r p m o C l i N . 2 7 6 7 5 l i N . 2 5 8 9 6 d e n i a t e R i s g n n r a E y r o t u t a t S s e v r e s e R d n u F l a i c e p S e v r e s e R l a t i p a C l a t i p a C l s u p r u S d n a s e v r e s e R e v r e s e R e v r e s e R n o i t p m e d e R e v r e s e R e r u t n e b e D n o i t p m e d e R s e i t i r u c e S i m u m e r P l a r e n e G e v r e s e R . 0 3 5 0 4 . 8 0 0 6 6 . 5 8 2 0 1 . 0 3 1 2 2 6 7 5 1 . . 5 8 4 7 0 1 , . 0 8 7 4 6 5 , . 3 5 6 8 0 4 , . 0 3 8 0 4 2 , . ) 7 3 6 1 ( . 3 9 1 9 3 2 , l i N l i N . ) 4 6 3 2 4 ( 9 6 1 . . 7 3 6 2 2 ) 0 2 6 1 ( . . ) 6 0 2 1 1 ( . 9 3 3 7 4 2 , . 9 3 3 7 4 2 , . 4 9 0 9 1 2 , ) 0 7 7 1 ( . . 4 2 3 7 1 2 , l i l i N N l i N l i N . ) 5 6 3 2 4 ( . ) 5 1 1 7 7 ( . 6 2 4 4 3 ) 4 5 3 ( . . ) 0 0 0 0 5 ( . ) 8 8 0 1 1 ( . 7 6 1 8 1 3 , l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N . 8 0 0 6 6 . 8 0 0 6 6 l i l i l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N N N l i N l i N l i N l i N l i N l i N l i N l i N l i N 0 2 6 1 . . 5 0 9 1 1 . 5 0 9 1 1 l i l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N N 4 5 3 . l i N l i N l i N l i N l i N l i N l i N l i N l i N 9 7 0 1 . . 9 0 2 3 2 . 9 0 2 3 2 l i l i l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N N N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i l i l i l i l i l i l i l i l i N N N N N N N N N 6 7 5 1 . 6 7 5 1 . l i l i N N . 0 0 0 0 5 l i N l i N l i N l i N l i N l i N l i N l i N l i N ) 9 6 1 ( . l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N . 6 1 3 7 0 1 , . 0 8 7 4 6 5 , . 3 5 6 8 0 4 , . 6 1 3 7 0 1 , . 0 8 7 4 6 5 , . 3 5 6 8 0 4 , l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N l i N . ) 6 2 4 4 3 ( l i l i l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N N N l i l i l i l i l i l i l i l i l i l i l i l i N N N N N N N N N N N N l i N . 8 0 0 6 6 l i N . 9 5 2 2 1 l i N . 9 0 2 3 2 l i N . 6 7 5 1 5 l i N . 0 9 8 2 7 l i N . 0 8 7 4 6 5 , l i N . 3 5 6 8 0 4 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t r o f t fi o r P ) 0 2 e t o N r e f e R ( y t i u q E r e h t O n o i t p i r c s e D . C ) x a T f o t e N ( r a e y e h t r o f ) e s n e p x E ( / e m o c n I e v i s n e h e r p m o C r e h t O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e m o c n I e v i s n e h e r p m o C l a t o T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d s e r a h S y t i u q E f o e u s s I i i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) d n e d v d n o x a t g n d u l c n i ( d a p d n e d v D i i i i i . . . . . . . . . . . . . . . . . . . . . . s e i r a d i s b u S f o n o i t i s i u q c a n o t s e r e t n i g n i l l o r t n o c - n o N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s e r a h S f o e a S n o s g n n r a E d e n a t e R o t l i i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e v r e s e R n o i t p m e d e R e r u t n e b e D o t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d n u F e v r e s e R l a i c e p S o t r e f s n a r T r e f s n a r T r e f s n a r T . . . . . . . . . . . . ) x a T f o t e N ( s e i t i r u c e S l a u t e p r e P d e r u c e s n U n o n o i t u b i r t s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 8 1 0 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B , h c r a M t s 1 3 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t r o f t fi o r P ) x a T f o t e N ( r a e y e h t r o f ) e s n e p x E ( / e m o c n I e v i s n e h e r p m o C r e h t O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e m o c n I e v i s n e h e r p m o C l a t o T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d s e r a h S y t i u q E f o e u s s I i i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) d n e d v d n o x a t g n d u l c n i ( d a p d n e d v D i i i i i . . . . . . . . . . . . . . . . . . . . . . s e i r a d i s b u S f o n o i t i s i u q c a n o t s e r e t n i g n i l l o r t n o c - n o N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s e r a h S f o e a S n o s g n n r a E d e n a t e R o t l i i r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t r o f s t n e m u r t s n I y t i u q E f o e u a V r i a F l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s g n n r a E d e n a t e R o t i i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e v r e s e R n o i t p m e d e R l a t i p a C o t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e v r e s e R n o i t p m e d e R e r u t n e b e D o t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d n u F e v r e s e R l a i c e p S o t r e f s n a r T r e f s n a r T r e f s n a r T r e f s n a r T . . . . . . . . . . . . ) x a T f o t e N ( s e i t i r u c e S l a u t e p r e P d e r u c e s n U n o n o i t u b i r t s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B , d r a o B e h t f o f l a h e b n o d n a r o F A L A W A R G A I L A M N A B 9 2 0 0 2 1 0 0 : I N D r o t c e r i D y r a t e r c e S y n a p m o C Y R T S M I . M . H r o t c e r i i D g n g a n a M & O E C I A H N S R E E V A R P 4 6 1 5 8 7 1 0 : I N D M A Y N A M A R B U S H S E M A R r e c ffi O l i a i c n a n F f e h C i 3 0 0 0 0 3 E / E 2 8 9 4 2 3 o N n o i t a r t s i g e R m . r i F I A C I e t a d n e v e f o t r o p e r r u o r e p s A s t n a t n u o c c A d e r e t r a h C P L L O C & C B R S r o F I I N O S R H D U S r e p r e n t r a P . 9 1 0 2 , y a M d n 2 , i a b m u M . 9 1 0 2 , y a M d n 2 , i a b m u M 0 7 8 1 4 . i o N p h s r e b m e M s t n e m e t a t S l a i c n a n i F d e t a d i l o s n o C e h t o t s e t o n g n i y n a p m o c c a e e S ) 3 4 e t o N r e f e R ( d e t a t s e R * y t i u q E n i s e g n a h C f o t n e m e t a t S d e t a d i l o s n o C e r o r c ` . 0 5 0 7 2 t n u o m A l i N . 0 5 0 7 2 l i N . 0 5 0 7 2 e r o r c ` t n u o m A . 0 0 0 0 5 1 , l i N . 0 0 0 0 5 1 , l i N . 0 0 0 0 5 1 , , 0 1 5 3 7 7 4 0 7 2 , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B l i N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d d e u s s I , 0 1 5 3 7 7 4 0 7 2 , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B l i N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d d e u s s I s e r a h S f o . o N l a t i p a C e r a h S y t i u q E . A , 0 1 5 3 7 7 4 0 7 2 , , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B l i N 0 0 0 5 1 , 0 0 0 5 1 , l i N 0 0 0 5 1 , s e i t i r u c e S f o . o N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d d e u s s I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r a e y e h t g n i r u d d e u s s I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B s e i t i r u c e S l a u t e p r e P d e r u c e s n U . B 136 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 1. Corporate Information: 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 principal business of the Company is generation, transmission, distribution and trading of electricity. The Company and its subsidiaries (collectively referred to as ‘the Group’) is one of India’s largest integrated power companies with an international presence. The Group together with its joint venture companies has an installed gross generation capacity of 10,957 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 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 3,617 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 multi-fold growth and is committed to ‘lighting up lives’ for generations to come. 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 (as amended from time to time). 2.2 Basis of preparation and presentation The consolidated financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value or revalued amount: - - - derivative financial instruments, certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments). employee benefit expenses (Refer Note 24 for Accounting policy). 2.3 Basis of Consolidation The Group consolidates all entities which are controlled by it. The consolidated financial statements comprise the financial statements of the Company 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. Profit or loss on each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interest having a deficit balance. Changes in the Group’s holding that do not result in a loss of control are accounted for as equity transactions. The carrying amount of the Group’s holding and the non-controlling interests are adjusted to reflect the changes in their relative holding. 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. 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. (Refer Note 6a) 2.4 Business Combinations and Goodwill The Group accounts for its business combinations under acquisition method of accounting. Acquisition related costs are recognised in statement of 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. Consolidated Financials I 137 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 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. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in other comprehensive income (OCI) and accumulated in equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in equity as capital reserve, without routing the same through OCI. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash- generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. A cash generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the 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 based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods. 2.5 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 % voting power held as at 31st March, 2019 31st March, 2018 % voting power held as at 1st April, 2017 India India India India India India Subsidiaries (Direct) Af-Taab Investment Co. Ltd ................................. Tata Power Trading Co. Ltd. ................................. NELCO Ltd. ................................................................ Maithon Power Ltd. ............................................... Tata Power Delhi Distribution Ltd. ................... Coastal Gujarat Power Ltd. .................................. Bhira Investments Pte. Ltd. ................................. Singapore Bhivpuri Investments Ltd. ................................... Mauritius Khopoli Investments Ltd. ..................................... Mauritius Trust Energy Resources Pte. Ltd. ....................... Singapore Industrial Power Utility Ltd. ................................ Tata Ceramics Ltd. $ ............................................... Tata Power International Pte. Ltd. .................... Tata Power Solar Systems Ltd. ........................... Tata Power Renewable Energy Ltd. .................. Tata Power Jamshedpur Distribution Ltd. ..... TP Ajmer Distribution Ltd. ................................... Tata Power Green Energy Ltd. ........................... India India Singapore India India India India India 138 I Consolidated Financials 100 100 50.04 74 51 100 100 100 100 100 100 57.07 100 100 100 100 100 100 100 100 50.04 74 51 100 100 100 100 100 100 57.07 100 100 100 100 100 100 100 100 50.04 74 51 100 100 100 100 100 100 57.07 100 100 100 100 Nil 100 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements Name Country of Incorporation % voting power held as at % voting power held as at 31st March, 2019 31st March, 2018 % voting power held as at 1st April, 2017 92.50 51 100 92.50 51 100 Indonesia India Singapore Subsidiaries (Indirect) PT Sumber Energi Andalan Tbk. $ .................... NDPL Infra Ltd. ........................................................ Energy Eastern Pte. Ltd. ....................................... Tatanet Services Ltd. (TNSL) (Consolidated with NELCO Ltd.) ....................... Supa Windfarm Ltd. .............................................. Poolavadi Windfarm Ltd. ..................................... Nivade Windfarm Ltd. .......................................... Indo Rama Renewables Jath Ltd. ..................... Walwhan Renewable Energy Ltd. .................... Clean Sustainable Solar Energy Private Ltd. @ .. Dreisatz Mysolar24 Private Ltd. @ ..................... MI Mysolar24 Private Ltd. @ ................................ Northwest Energy Private Ltd. @ ...................... Solarsys Renewable Energy Private Ltd. @ .... Walwhan Solar Energy GJ Ltd. @ ....................... Walwhan Solar Raj Ltd. @ .................................... Walwhan Solar BH Ltd. @ ..................................... Walwhan Solar MH Ltd. @ .................................... Walwhan Wind RJ Ltd. @ ...................................... Walwhan Solar AP Ltd. @ ..................................... Walwhan Solar KA Ltd. @ ..................................... Walwhan Solar MP Ltd. @ .................................... Walwhan Solar PB Ltd. @ ..................................... Walwhan Energy RJ Ltd. @ .................................. Walwhan Solar TN Ltd. @ ..................................... Walwhan Solar RJ Ltd. @ ...................................... Walwhan Urja Anjar Ltd. @ .................................. Walwhan Urja India Ltd. @ .................................. Chirasthayee Saurya Ltd. ..................................... Nelco Network Products Ltd. (Consolidated with NELCO Ltd.) ........................ Vagarai Windfarm Ltd. .......................................... Far Eastern Natural Resources LLC # ................ Russia # Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2019. @ Consolidated with Walwhan Renewable Energy Ltd. $ Classified as held for sale 50.04 100 100 100 100 100 99.99 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50.04 100 100 100 100 100 99.99 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 India India India India India India India India India India India India India India India India India India India India India India India India India India 50.04 72 100 50.04 72 100 India India 94.61 51 100 50.04 100 100 100 100 99.99 99.99 100 74 100 72.50 74 100 100 100 100 100 100 100 100 100 100 100 100 100 100 50.04 100 Nil 3. Other Significant Accounting Policies, Critical Accounting Estimates and Judgements: 3.1 Foreign Currencies The Group’s consolidated financial statements are presented in Indian Rupee, which is also the parent company’s functional currency. For each entity the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. However, for practical reasons, the group uses an average rate if the average approximates the actual rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using Consolidated Financials I 139 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or profit or loss are also recognised in OCI or profit or loss, respectively). 3.2 Current versus non-current classification The Group presents assets and liabilities in the balance sheet based on current/ non-current classification. An asset is treated as current when it is: - - - - expected to be realised or intended to be sold or consumed in normal operating cycle, held primarily for the purpose of trading, expected to be realised within twelve months after the reporting period, or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: - - - - it is expected to be settled in normal operating cycle, it is held primarily for the purpose of trading, it is due to be settled within twelve months after the reporting period, or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Group has identified twelve months as its operating cycle. 3.3.1 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. 3.4 Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. 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 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 measured at fair value through profit or loss are recognised immediately in statement of profit and loss. 3.5 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. 3.5.1 Financial assets at amortised cost Financial assets are subsequently measured at amortised cost using the effective interest rate method 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. 140 I Consolidated Financials 100th Annual Report 2018-19 3.5.2 Financial assets at fair value through other comprehensive income (FVTOCI) Notes to the Consolidated Financial Statements 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 cash flows and selling financial assets 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. 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 statement of profit and loss on sale of the investments. 3.5.3 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 statement of profit and loss. 3.5.4 Investment in Jointly Controlled Entities and Associates Investment in jointly controlled entities and associates are accounted using equity method less impairment. Impairment of investments: The Group reviews its carrying value of investments carried at cost, amortised cost or equity method 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 in the statement of profit and loss. 3.5.5 Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Group’s balance sheet) when: - - the right to receive cash flows from the asset have expired, or the Group has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its right to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of the Group’s continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. 3.5.6 Impairment of financial assets 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 contract assets and/or 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 months 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. 3.6 Financial liabilities and equity instruments 3.6.1 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. 3.6.2 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. Consolidated Financials I 141 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 3.6.3 Financial liabilities All financial liabilities are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through the Effective Interest Rate (EIR) amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. 3.6.4 Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. 3.6.5 Financial guarantee contracts Financial guarantee contracts issued by the Group are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation. 3.7 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. 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 statement of profit and loss immediately. 3.8 Reclassification of financial assets and liabilities The Group determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Group’s senior management determines change in the business model as a result of external or internal changes which are significant to the Group’s operations. Such changes are evident to external parties. A change in the business model occurs when the Group either begins or ceases to perform an activity that is significant to its operations. If the Group reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Group does not restate any previously recognised gains, losses (including impairment gains or losses) or interest. 3.9 Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 3.10 Government Grants 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 statement of 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 reduced from the cost of the assets. 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. Amendment to Ind AS-20 Government Grant The Ministry of Corporate Affairs (MCA) notified the Companies (Indian Accounting Standards) Second Amendment Rules, 2018 (the ‘Rules’) on 20th September 2018. The Rules amend Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance to allow entities the option of recording non-monetary government grants at a nominal amount and presenting government grants related to assets by deducting the grant from the carrying amount of the asset. This amendment has been opted and applied (Refer Note 3.14) by the Group. 142 I Consolidated Financials 100th Annual Report 2018-19 3.11 Dividend distribution to equity shareholders of the Parent Company Notes to the Consolidated Financial Statements The Parent Company recognises a liability to make dividend distributions to its equity holders when the distribution is authorised and the distribution is no longer at its discretion. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. 3.12 Service Concession Agreement (SCA) A Group entity has entered into contract for design, part finance, engineering, manufacture, supply, erection, testing, commissioning and operation and maintenance for 25 years of Grid Interactive Solar Power Project through Public Private Partnership with a public sector power generator (PSU). The PSU has paid part of the project cost to the Group on commissioning of plant/Handover of Project. Remaining cost and the operations and maintenance cost is being recovered over the period of the project in accordance with the agreement with the PSU. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. It requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. As per the arrangement, the share of electricity revenue is divided into three parts i.e. towards deferred payment, interest income and operation and maintenance revenue. The Group has initially measured financial asset at fair value and subsequently at amortized cost by recognizing share of electricity sale revenue first towards operation and maintenance revenue. Subsequent thereto, amount is recognised as interest income at computed Internal Rate of Return (IRR) on opening balance of the financial asset. Further, surplus of revenue share over and above operation and maintenance revenue and interest income is recognized as recovery of the financial asset. 3.13 Standards issued but not yet effective The amendments to standards that are issued, but not yet effective, upto the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these standards, if applicable, when they become effective. Ind AS 116 - Leases Ind AS 116 Leases was notified in March 2019 and it replaces Ind AS 17 Leases. Ind AS 116 is effective for annual periods beginning on or after 1st April, 2019. It sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Ind AS 116 requires lessees and lessors to make more extensive disclosures than under Ind AS 17. The Group is in the process of evaluating the requirements of the standard and its impact on its financial statements. Ind AS 12 – Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income tax treatments) The amendment relating to income tax consequences of dividend clarify that an entity shall recognise the income tax consequences of dividends in statement of profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. The Group does not expect any impact from this pronouncement. It is relevant to note that the amendment does not amend situations where the entity pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on behalf of shareholders. Such amount paid or payable to taxation authorities continues to be charged to equity as part of dividend, in accordance with Ind AS 12. The amendment to Appendix C of Ind AS 12 specifies that the amendment is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. It outlines the following: (1) the entity has to use judgement, to determine whether each tax treatment should be considered separately or whether some can be considered together. The decision should be based on the approach which provides better predictions of the resolution of the uncertainty (2) the entity is to assume that the taxation authority will have full knowledge of all relevant information while examining any amount (3) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The Group does not expect any significant impact of the amendment on its financial statements. Ind AS 109 – Prepayment Features with Negative Compensation The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. The Group does not expect this amendment to have any impact on its financial statements. Consolidated Financials I 143 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements Ind AS 19 – Plan Amendment, Curtailment or Settlement The amendments clarify that if a plan amendment, curtailment or settlement occurs, it is mandatory that the current service cost and the net interest for the period after the re-measurement are determined using the assumptions used for the re-measurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The Group does not expect this amendment to have any significant impact on its financial statements. Ind AS 23 – Borrowing Costs The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The Group does not expect any impact from this amendment. Ind AS 28 – Long-term Interests in Associates and Joint Ventures The amendments clarify that an entity applies Ind AS 109 Financial Instruments, to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The Group does not currently have any such long-term interests in associates and joint ventures. Ind AS 103 – Business Combinations and Ind AS 111 - Joint Arrangements The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-measure previously held interests in that business. The Group will apply the pronouncement if and when it obtains control / joint control of a business that is a joint operation. 3.14 Changes in accounting policies and disclosures (a) Revenue from delay payment charges Delayed payment charges were hitherto recognized only when they are realised/recovered. With effect from 1st April, 2018, the Group has revised its accounting policy to recognize Delayed Payment Charges (DPC) on accrual basis based on contractual terms and an assessment of certainty of realization. Management believes that this policy results in the financial statements providing reliable and more relevant information about the effects of transaction on the Group’s financial position and performance. The revision in accounting policy has been applied retrospectively has resulted in increase in other income and profit before tax by ₹ 58.64 crore, current tax by ₹ 20.39 crore, profit after tax by ₹ 39.25 crore for the year ended 31st March, 2019 and does not have any significant impact on previous year’s statement of profit and loss and retained earnings as at 1st April, 2017. New and amended standards and interpretations The Group applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after 1st April, 2018. The nature and the impact of each amendment is described below: (b) Ind AS 20 Accounting for Government Grants and Disclosure In accordance with the amendment in Ind AS 20 “Accounting for Government Grants and Disclosure” the Group has changed its accounting policy of recognizing the grant as a reduction from the carrying amount of the asset instead of recognizing the grant as deferred income. Management believes that this policy results in the financial statements providing reliable and more relevant information about the effects of transaction on the Group’s financial position and performance. The revision in accounting policy has been applied retrospectively. Refer Note 43 for restatement. (c) Ind AS 115 Revenue from Contracts with Customers Ind AS 115 supersedes Ind AS 11 Construction Contracts, Ind AS 18 Revenue and related interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Group adopted Ind AS 115 using the full retrospective method of adoption. Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires relevant disclosures. Refer Note 43 for restatement. 144 I Consolidated Financials 100th Annual Report 2018-19 3.15 Critical accounting estimates and judgements Notes to the Consolidated Financial Statements In the application of the Group’s accounting policies, the Management is 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 or judgements are: Estimates and judgements used for impairment of property, plant and equipment of certain cash generating units (CGU) - Note 4 Estimation and judgements for impairment of goodwill - Note 5 a. Estimated fair value of unquoted securities and impairment of investments - Note 6 Estimation of defined benefit obligation - Note 24 Estimation of provision for warranty claims - Note 24 Estimation of current tax and deferred tax expenses (including Minimum Alternate Tax Credit) - Note 33 and 12 Judgement to estimate the amount of provision required or to determine required disclosure related to litigation and claims against the Group - Note 35 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. 4 a. Property, Plant and Equipment Accounting Policy Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price (net of trade discount and rebates) 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 Ind AS 23. Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant and equipment are required to be replaced at intervals, the Group depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in statement of profit and loss as incurred. Depreciation Depreciation commences when an asset is ready for its intended use. Freehold land and assets held for sale are not depreciated. Regulated 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 as notified by the respective regulators. Non Regulated Assets: Depreciation is recognised on the cost of assets (other than freehold land and properties under construction) less their residual values over their estimated 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. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 145 The Tata Power Company Limited Notes to the Consolidated Financial Statements Estimated useful lives of the Regulated and Non Regulated assets are as follows: Type of asset Leasehold Land Hydraulic Works Buildings-Plant Buildings-Others Coal Jetty Railway Sidings, Roads, Crossings, etc. Plant and Equipment (excluding Computers and Data Processing units) Plant and Equipment (Computers and Data Processing units) Transmission Lines, Cable Network, etc. Furniture and Fixtures Office Equipment Motor Cars Motor Lorries, Launches, Barges etc. Ships Helicopters Decapitalisation Useful lives 25 to 95 years 35 years 5 to 40 years 25 to 60 years 25 years 5 to 35 years 3 to 40 years 3 to 6 years 4 to 35 years 5 to 35 years 5 to 15 years 4 to 10 years 25 to 35 years 25 years 25 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 statement of profit and loss. Impairment Impairment of tangible and intangible assets The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or Cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other asset or Group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a PPA period. To estimate Cash flow projections beyond periods covered by the most recent budgets/forecasts, the Group extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the market in which the asset is used. Impairment losses of tangible and intangible assets are recognised in the statement of profit and loss. 146 I Consolidated Financials 100th Annual Report 2018-19 s t n e m e t a t S l a i c n a n i F d e t a d i l o s n o C e h t o t s e t o N e r o r c ` l a t o T s t e s s A r e d n U e s a e L s r e t p o c i l e H i s p h S r o t o M e c ffi O e r u t i n r u F n o i s s i m s n a r T d n a t n a l P , s e l c i h e V , s e h c n u a L . c t e , s e g r a B s e r u t x i F e l b a c k r o w t e n t n e m p u q E i d n a d n a s e n i l t n e m p u q E i . 5 6 7 3 4 6 5 , . 6 2 2 2 4 2 , 3 4 7 9 . . ) 3 3 7 2 2 ( l i N l i N l i N l i N l i N l i N . 8 0 0 3 2 1 0 7 3 . . ) 0 8 2 7 7 ( . ) 5 6 5 2 2 ( l i N l i N l i N l i N . 3 4 7 9 l i N l i N 5 9 7 . ) 1 3 3 1 ( . l i N 6 0 2 6 . ) 1 3 0 1 ( . 0 1 3 . ) 5 8 4 ( . l i N l i N . 8 6 9 0 5 ) 5 2 4 ( . ) 1 6 0 ( . ) 1 1 0 ( . ) 1 8 4 ( . . ) 0 5 5 6 4 ( . 6 5 3 1 9 3 4 , . 3 5 4 6 6 1 , l i N . ) 4 6 8 8 1 ( ) 3 7 0 ( . l i N l i N . 4 8 3 9 5 1 , . 1 8 6 0 1 . 4 3 2 1 1 . 0 3 2 2 1 . 2 5 9 9 6 5 , l i N l i N l i N l i N 5 6 2 1 . ) 9 3 0 ( . l i N 8 2 4 9 . ) 2 6 1 ( . l i N . ) 0 6 1 2 ( ) 4 2 1 5 ( . . 1 2 7 5 9 7 5 , 3 4 4 . 1 0 7 3 . . 7 2 1 9 6 1 , . 5 4 1 0 1 . 8 4 3 6 1 . 4 4 0 2 1 . 4 1 0 0 2 6 , . 5 9 3 2 9 4 4 , . 4 8 2 0 1 . 0 1 6 0 1 . 9 7 2 5 7 . 1 3 5 8 1 2 , 5 4 9 9 . 2 1 4 . , s d a o R y a w l i a R , s g n d i s i . c t e s g n i s s o r c l a o C y t t e J @ s r e h t O t n a l P s k r o W d n a L - s g n d i l i u B - s g n d i l i u B c i l u a r d y H l d o h e e r F n o i t p i r c s e D t s o C ) . d t n o C ( i t n e m p u q E d n a t n a l P , y t r e p o r P . a 4 . 0 1 6 0 1 . 3 1 2 6 7 . 9 8 3 4 1 2 , . 8 6 6 3 5 . 4 9 3 7 9 . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , l i r p A t s 1 t a s a e c n a l a B 6 5 1 . ) 8 7 1 ( . l i N l i N . 6 4 6 3 5 3 3 2 6 . ) 5 4 1 ( . l i N ) 8 2 3 ( . . 4 5 1 3 0 1 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t i d d A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t n e m e v o M e g n a h c x E . . . . . . . . . . . . . . . . . . . . . . . . . . . . l e a s l r o f d e h s a d e fi i s s a l c e R . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B d n a n o i t a i c e r p e d d e t a l u m u c c A t n e m r i a p m i . 4 0 6 0 0 5 1 , 4 1 8 . 8 7 0 3 . . 1 0 8 6 3 2 5 8 4 . 7 0 3 6 . . 8 9 6 7 . 9 9 9 2 0 2 , . 1 8 6 5 2 1 1 , 4 2 9 6 . 9 3 0 5 . . 3 8 2 0 2 . 8 2 8 1 5 . 0 0 3 8 2 l i N . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . 5 4 9 6 2 2 , 0 9 2 . . ) 3 2 6 5 1 ( l i N 7 0 8 1 . 8 8 1 2 . l i N l i N . ) 0 5 3 0 3 ( ) 0 1 0 1 ( . 7 4 2 . l i N l i N l i N l i N 1 9 4 6 . l i N l i N l i N 3 8 1 2 . 2 8 1 1 . ) 8 8 5 ( . l i N l i N l i N . 1 7 5 5 8 6 1 , . 0 5 1 0 1 1 4 , . 1 6 1 3 4 1 4 , 4 9 0 . . 5 2 3 3 . 5 7 4 5 4 6 4 4 5 . 9 4 3 . 6 7 3 . . 4 9 1 2 2 3 2 6 . . 2 5 6 3 2 1 , . 3 8 5 2 2 1 , . 9 9 6 4 9 2 8 5 . 2 3 3 1 . ) 0 1 3 ( . l i N l i N ) 8 3 0 ( . 1 9 2 7 . 7 5 0 9 . 7 2 9 4 . 1 8 8 . ) 2 2 4 ( . l i N 5 0 0 . ) 7 0 0 ( . . 5 5 1 8 9 8 8 3 . 2 3 5 4 . . 9 8 0 5 2 ) 6 8 1 ( . 7 0 0 . l i N ) 6 6 2 ( . . 3 4 6 7 2 2 , . 7 0 5 0 8 1 , 2 1 2 . 2 6 5 . 3 1 1 3 . l i N 5 3 0 1 . . ) 2 6 8 3 2 ( l i N l i N l i N . ) 1 2 7 3 1 ( ) 4 6 0 ( . l i N l i N l i N l i N l i N l i N ) 6 3 0 ( . 2 0 8 5 . ) 5 4 1 ( . 5 6 7 . l i N ) 5 4 2 1 ( . ) 2 2 9 3 ( . 7 3 2 1 . ) 1 5 1 ( . l i N l i N l i N . 0 4 6 9 6 2 1 , 2 7 0 7 . 1 0 6 5 . . 5 1 1 2 2 . 8 2 3 4 5 . 6 8 3 9 2 l i N l i N l i N l i N l i N l i N . 1 7 3 2 9 3 , . 5 5 7 2 2 2 3 , . 3 5 9 6 6 3 , . 5 7 6 5 6 2 3 , 2 1 2 3 . 1 2 0 3 . 9 0 0 5 . . 4 6 1 3 5 1 7 5 5 . . 0 3 9 5 5 . 3 0 2 4 6 1 , . 0 6 2 4 2 . 4 5 1 3 0 1 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O i g n u n i t n o C - e s n e p x E n o i t a i c e r p e D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s t e s s a f o l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ] w o e b l ) i ( e t o N r e f e R [ t n e m r i a p m I - r a e y e h t r o f e g r a h C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t n e m e v o M e g n a h c x E . . . . . . . . . . . . . . . . . . . . . . . . . . . . l e a s l r o f d e h s a d e fi i s s a l c e R . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B t n u o m a g n i y r r a c t e N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s A . 1 6 5 2 6 1 , . 8 6 3 5 2 . 4 9 3 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s A Consolidated Financials I 147 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S s t n e m e t a t S l a i c n a n i F d e t a d i l o s n o C e h t o t s e t o N . 4 9 8 6 9 3 5 , . 1 9 4 4 0 3 , 9 9 7 . 8 0 3 . . ) 5 7 3 6 1 ( . ) 9 6 2 9 3 ( ) 3 8 0 3 ( . . 5 6 7 3 4 6 5 , l i N l i N l i N l i N l i N 3 4 4 . l i N l i N l i N l i N l i N l i N . 5 6 5 2 2 1 0 7 3 . . 8 0 0 3 2 1 0 7 3 . l i N ) 5 2 3 ( . l i N 9 9 7 . l i N l i N . 0 1 9 8 5 1 , . 4 8 3 9 5 1 , l i N l i N 3 4 6 7 . 9 4 6 4 . ) 8 7 0 1 ( . , s e l c i h e V , s e h c n u a L . c t e , s e g r a B l i N l i N . 9 4 4 1 1 9 5 0 2 . ) 7 9 6 1 ( . l i N l i N . 7 4 7 3 1 8 0 5 . ) 8 4 7 ( . ) 5 2 5 ( . ) 3 0 6 ( . . ) 8 2 4 1 ( ) 8 0 0 ( . . 1 8 6 0 1 6 2 0 . . 4 3 2 1 1 1 5 1 . . 0 3 2 2 1 l i N l i N l i N . 8 1 2 0 5 ) 9 2 8 ( . . 9 6 2 0 2 5 , . 1 2 7 7 9 1 4 , . 6 9 3 3 2 2 , l i N l i N . ) 7 2 4 1 1 ( l i N l i N l i N 0 0 6 9 . 0 6 3 . . ) 6 7 7 4 1 ( ) 4 6 0 ( . 4 9 2 . ) 8 5 5 3 ( . . 2 5 9 9 6 5 , . 6 5 3 1 9 3 4 , 9 4 0 . 5 4 9 9 . l a t o T e r o r c ` s t e s s A r e d n U e s a e L s r e t p o c i l e H i s p h S r o t o M e c ffi O e r u t i n r u F n o i s s i m s n a r T d n a t n a l P y a w l i a R , s d a o R t n e m p u q E i d n a d n a s e n i l t n e m p u q E i , s g n d i s i s e r u t x i F e l b a c k r o w t e n . c t e s g n i s s o r c l a o C y t t e J @ s r e h t O t n a l P s k r o W d n a L - s g n d i l i u B - s g n d i l i u B c i l u a r d y H l d o h e e r F n o i t p i r c s e D ) . d t n o C ( i t n e m p u q E d n a t n a l P , y t r e p o r P . a 4 . 0 1 6 0 1 . 2 7 0 5 7 . 3 4 1 4 0 2 , l i N l i N l i N l i N l i N l i N 4 7 1 1 . ) 0 6 0 ( . l i N 8 0 3 . l i N l i N . 1 5 3 6 1 ) 8 9 1 ( . ) 6 8 2 ( . ) 1 3 8 5 ( . 5 0 0 . ) 6 7 0 ( . . 0 1 6 0 1 . 3 1 2 6 7 . 9 8 3 4 1 2 , l i N l i N l i N l i N 6 4 0 . . 8 8 5 3 5 l i N l i N 7 8 2 5 . ) 3 1 0 ( . . 6 7 8 7 0 1 , . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t i d d A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t n e m e v o M e g n a h c x E . . . . y t r e p o r P t n e m t s e v n I m o r f d e r r e f s n a r T s n o i t a r e p O d e u n i t n o c s i D o t d e r r e f s n a r T t s o C . ) 6 5 7 5 1 ( . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) 7 1 e t o N r e f e R ( l e a s l r o f d e h m o r f / ) o t ( d e fi i s s a l c e R 4 3 0 . . 8 6 6 3 5 l i N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) 7 1 e t o N r e f e R ( . 4 9 3 7 9 . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B 148 I Consolidated Financials 6 9 1 1 . . ) 8 5 9 1 1 ( 6 1 2 . 2 2 2 . . 4 7 5 4 4 ) 0 7 4 9 ( . ) 6 6 4 3 ( . . 4 0 6 0 0 5 1 , The Tata Power Company Limited . 1 6 1 3 4 1 4 , . 1 2 4 0 4 1 4 , . 7 1 8 2 2 2 , . 3 7 4 6 5 2 1 , 4 3 5 . 0 8 2 . l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N 2 2 2 . l i N l i N 4 1 8 . 8 7 0 3 . . 1 0 8 6 3 . 4 9 1 2 2 . 1 3 0 2 2 3 2 6 . 0 9 9 . . 3 8 5 2 2 1 , . 5 0 3 8 2 1 , 3 1 1 . ) 0 7 6 ( . l i N l i N 2 3 0 . ) 0 3 1 ( . ) 7 0 0 ( . 2 5 8 4 . 9 2 8 5 . 1 3 6 3 . 1 6 0 . ) 4 1 3 1 ( . l i N l i N 8 0 0 . ) 1 3 3 ( . ) 6 1 0 ( . 7 0 3 6 . 7 2 9 4 . 0 1 0 5 . 6 2 1 . ) 5 7 6 ( . l i N l i N 0 3 0 . ) 0 0 7 ( . ) 7 0 0 ( . 8 9 6 7 . 2 3 5 4 . 3 0 0 6 . l i N ) 5 2 3 ( . l i N l i N 7 6 0 . l i N 6 0 1 . 5 3 7 . ) 1 1 9 8 ( . . 9 7 3 2 4 l i N l i N ) 9 9 4 6 ( . ) 8 2 5 3 ( . . 9 9 9 2 0 2 , . 1 8 6 5 2 1 1 , . 3 5 9 6 6 3 , . 5 7 6 5 6 2 3 , . 9 8 9 9 3 3 , . 0 6 1 3 7 2 3 , 1 1 7 2 . . 5 0 6 0 3 2 1 0 4 . 9 3 4 6 . 4 4 7 7 . . 0 8 2 0 8 1 , . 1 6 5 4 2 9 , 7 6 3 . 4 7 9 5 . 2 0 5 1 . 0 6 4 1 . 0 8 1 1 . . 1 7 8 2 2 . 4 4 9 6 7 1 , 2 7 5 6 . 9 7 4 4 . . 1 1 7 5 1 . 5 7 7 5 4 . 0 5 0 7 2 1 8 2 . - 5 0 0 . l i N l i N 7 7 0 . ) 0 2 0 ( . 9 0 0 . 4 2 9 6 . 1 2 0 3 . 8 2 0 3 . 0 6 5 . 6 9 0 4 . 0 7 0 6 . 2 3 2 1 . l i N l i N l i N l i N l i N l i N l i N 1 3 0 . ) 5 5 0 ( . 1 8 3 . 6 1 2 . l i N ) 1 8 0 ( . ) 6 1 0 ( . 9 3 0 5 . . 3 8 2 0 2 1 7 5 5 . 1 3 1 6 . . 0 3 9 5 5 . 1 6 3 9 5 5 2 1 . ) 8 0 0 ( . l i N l i N 0 0 6 1 . ) 9 0 7 1 ( . ) 5 2 0 ( . . 8 2 8 1 5 . 1 6 5 2 6 1 , . 8 6 3 8 5 1 , l i N l i N l i N l i N l i N l i N 8 1 0 . . 0 0 3 8 2 . 8 6 3 5 2 . 8 3 5 6 2 l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O i g n u n i t n o C - e s n e p x E n o i t a i c e r p e D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O d e u n i t n o c s i D - e s n e p x E n o i t a i c e r p e D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s t e s s a f o l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . ] w o e b l ) i i ( & ) i ( e t o N r e f e R [ . . . . y t r e p o r P t n e m t s e v n I m o r f d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t n e m e v o M e g n a h c x E s n o i t a r e p O d e u n i t n o c s i D o t d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) 7 1 e t o N r e f e R ( . . . . . . . . . . . . l e a s l r o f d e h m o r f / ) o t ( d e fi i s s a l c e R . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B t n e m r i a p m I - r a e y e h t r o f e g r a h C d n a n o i t a i c e r p e d d e t a l u m u c c A t n e m r i a p m i t n u o m a g n i y r r a c t e N . 4 9 3 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s A . 6 7 8 7 0 1 , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , h c r a M t s 1 3 t a s A : s e t o N . ] ) c ( ) i i i ( b 7 1 e t o N r e f e R [ l . t n a p n o i t a r e n e g r e w o p a a h t i R e h t l l f o e u a v g n y r r a c e h t i i t s n a g a ) e r o r c 7 5 7 3 ₹ - 8 1 0 2 . , h c r a M . t s 1 3 ( e r o r c 7 0 8 1 ₹ f o e g r a h c t n e m r i a p m i n a d e d r o c e r s a h p u o r G e h t , r a e y e h t g n i r u D i r a e y s u o v e r p e h t g n i r u d d e d r o c e r e g r a h c t n e m r i a p m I ) i i ( r a e y e h t g n i r u d d e d r o c e r e g r a h c t n e m r i a p m I ) i ( . y a b m o r T t a d e t a c o l ) t n e m g e S r e w o P ( n o i t a t s g n i t a r e n e g 6 t i n U f o t c e p s e r n i . e r o r c 0 0 0 0 1 ₹ f o e g r a h c t n e m r i a p m i n a d e d r o c e r d a h p u o r G e h T ) a ( ; s s e r g o r p n i s i s d e e d f o e l t i t f o n o i t a r t s i g e r h c i h w r o f i r a e y s u o v e r p e h t n i . d t L y a b m o r T l i a n m r e T l a c i m e h C f o r e g r e m g n i r u d d e r i u q c a e r o r c 8 8 0 ₹ o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l . i ) a ( : r o f t p e c x e , p u o r G e h t f o s e i t i t n e e v i t c e p s e r e h t f o e m a n e h t n i l d e h e r a t n e m p u q e d n a t n a p l i , y t r e p o r p n i d e d u l c n i s e i t r e p o r p e b a v o m m l i f o s d e e d e l t i t e h T ) i i i ( , l . - / 0 0 0 0 5 ₹ w o e b s e r u g fi s e t o n e D * . s e i t e i c o s g n i s u o h e v i t a r e p o - o c n i i s e r a h s y r a n d r o f o t s o c g n e b * ₹ e d u l c n i i s g n d i l i u B i . t n e m p u q E d n a t n a P l , y t r e p o r P n o d e t a e r c e g r a h c r o f 1 2 e t o N r e f e R ) c ( @ . 9 1 0 2 , h c r a M l t s 1 3 t a s a n o i t u o s e r g n d n e p d n a e t u p s i d n i i s i d e e d e l t i t e h t h c i h w . r o f e r o r c 7 5 7 2 ₹ o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l i . s s e c o r p n i s i s d e e d e l t i t f o n o i t a r t s i g e r e h t h c i h w . r o f e r o r c 2 0 7 9 2 ₹ o t g n i t a g e r g g a d n a l ) c ( ) d ( ; s s e r g o r p n i s i s d e e d f o e l t i t f o n o i t a r t s i g e r h c i h w r o f s r a e y r e i l r a e n i . d e r i u q c a e r o r c 4 5 6 2 ₹ o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l i ) b ( . ] ) i ( . b 6 e t o N r e f e R [ l . t n a p n o i t a r e n e g r e w o p a r d n u M e h t l f o e u a v g n y r r a c e h t i . i t s n a g a e r o r c 8 1 8 0 3 ₹ f o e g r a h c t n e m r i a p m i n a d e d r o c e r s a h p u o r G e h T ) b ( 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 4 b. Investment Property Accounting Policy Investment property held to earn rentals or for capital appreciation are stated at cost less subsequent accumulated depreciation and subsequent accumulated impairment loss if any. Gain or loss on disposal of investment properties is determined as the difference between net disposal proceeds and the carrying amount of the property and is recognised in the statement of profit and loss. Transfer to, or from, investment property is done at the carrying amount of the property. Description Building Given under Operating Lease Cost Balance as at 1st April, 2018 ................................................................................. Reclassified to Property, Plant and Equipment ................................................. Disposal............................................................................................................................ Balance as at 31st March, 2019 ........................................................................... Accumulated amortisation and impairment Balance as at 1st April, 2018 ................................................................................. Depreciation expense ................................................................................................ Reclassified to Property, Plant and Equipment ................................................. Eliminated on Disposal of assets ............................................................................ Balance as at 31st March, 2019 ........................................................................... Net carrying amount As at 31st March, 2019 ............................................................................................ As at 31st March, 2018 ............................................................................................. Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Description Building Given under Operating Lease 5.64 (3.08) (2.56) Nil 3.15 0.04 (2.16) (1.03) Nil Nil 2.49 Cost Balance as at 1st April, 2017 ................................................................................. Reclassified to Property, Plant and Equipment ................................................. Disposal............................................................................................................................ Balance as at 31st March, 2018 ........................................................................... Accumulated amortisation and impairment Balance as at 1st April, 2017 ................................................................................. Depreciation expense ................................................................................................. Reclassified to Property, Plant and Equipment ................................................. Eliminated on Disposal of assets ............................................................................ Balance as at 31st March, 2018 .......................................................................... Net carrying amount As at 31st March, 2018 ............................................................................................ As at 31st March, 2017 ............................................................................................ Note: Buildings include ` 500/- being cost of ordinary shares in a co-operative society. Information regarding Income and Expenditure of Investment Properties Particulars Rental Income ......................................................................................................................................... Direct Operating Expense arising from Investment Property that generated rental income during the year ....................................................................................................................... Direct Operating Expense arising from Investment Property that did not generate rental income during the year .......................................................................................................... Net Income/(Expense) ...................................................................................................................... As at 31st March, 2019 ` crore Nil As at 31st March, 2018 ` crore 0.58 Nil Nil Nil (0.07) (0.09) 0.42 Consolidated Financials I 149 ` crore Total Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil ` crore Total 5.64 (3.08) (2.56) Nil 3.15 0.04 (2.16) (1.03) Nil Nil 2.49 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 4 b. Investment Property (Contd.) Description of valuation techniques used and key inputs to valuation on Investment Properties: Valuation technique Fair Value Hierarchy Fair Value Particulars (Refer Note below) As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Building Market Comparable Approach Level 2 Nil Nil 36.76 The investment properties include a property located in Mumbai which has been reclassified as Property, Plant and Equipment during the year ended 31st March, 2018 and a property located in Bengaluru which was sold during the year ended 31st March, 2018. 5 a. Goodwill As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Cost Balance at beginning of year .................................................................. Additional amounts recognised from business combinations occurring during the year ............................................................................ Measurement period adjustment on account of business combination done during the year ended 31st March, 2017 ......... Less: Impairment during the year .............................................................. Balance at end of the year ........................................................................ 1,641.57 1,653.57 5.54 Nil Nil 1,726.94 Nil Nil 1,641.57 Nil (12.00) 1,641.57 (78.91) Nil 1,653.57 During the year 31st March, 2017, the Group had acquired Walwhan Renewable Energy Ltd. along with it’s subsidiaries for a consideration of ₹ 3,782.30 crore. The goodwill was provisionally determined at ₹ 1,713.84 crore. As per the share purchase agreement, the provisional consideration was to be adjusted for certain events existing at the closing date. During the previous year, the Group had adjusted the fair value of consideration by ₹ 70.22 crore being the measurement period adjustment. During the year ended 31st March, 2017, the Group also acquired Walwhan Solar Raj Ltd. and a goodwill of ₹ 11.42 crore was recorded. During the previous year, the Group made a measurement period adjustment of ₹ 8.69 crore consequent to recognition of deferred tax asset on reassessment. In accordance with Ind AS 36 “Impairment of Assets” the Group performed impairment testing of Goodwill assigned to each Cash Generating Unit (CGU) as at 31st March, 2019 applying value in use approach across all the CGUs i.e. using cash flow projections based on financial budgets covering contracted power sale agreements with procurers (15 to 20 years) considering a discount rate (pre-tax) in the range of 10.25% to 10.70% per annum. The Group has used financial projections for 15 to 20 years as the tariff rates are fixed as per PPA. Based on the results of the Goodwill impairment test, the estimated value in use in all CGUs were higher than their respective carrying amount, hence impairment provision recorded during the current year is ₹ Nil (31st March 2018 - ₹ 12 crore). 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: O&M cost inflation O&M cost escalation of 5% Discount Rate 10.25% to 10.70% Pre-Tax Discount rate has been derived based on current cost of borrowing and equity rate of return in line with the current market expectations. Plant load factor (PLF) Plant load factor is estimated for each CGU based on past trend of PLF and expected PLF in future years 150 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 5 b. Other Intangible Assets Accounting Policy Intangible assets acquired separately Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses if any. Internally generated intangibles Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. 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 statement of profit and loss when the asset is derecognised. Useful lives of intangible Assets Intangible assets with finite lives are amortised over the useful economic life on straight line basis and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. Estimated useful lives of the intangible assets are as follows: Type of asset Copyrights, patents, other intellectual property rights, services and operating rights Right to Use Assets (Intake Channel) Customer Contracts acquired under business combination Computer Software Power Distribution Rights Useful lives 5 years 5 years 12 to 25 years 3 to 6 years 20 years Description Cost Balance as at 1st April, 2018 ................ Additions ........................................................ Disposal........................................................... Balance as at 31st March, 2019 .......... Accumulated amortisation and impairment Balance as at 1st April, 2018 ............... Amortisation expense - Continuing Operations ..................................................... Impairment losses recognised in the statement of profit and loss .................... Balance as at 31st March, 2019 .......... Net carrying amount As at 31st March, 2019 ........................... As at 31st March, 2018 ............................. Computer Software $ Power Distribution Rights @ ` crore Total Right To Use Assets (Intake Channel) $ Customer Contracts acquired under business combination Copyrights, patents, other intellectual property rights, services and operating rights # 12.40 0.52 Nil 12.92 174.71 Nil Nil 174.71 1,386.57 Nil (0.43) 1,386.14 315.38 87.74 (9.80) 393.32 27.69 19.40 Nil 47.09 1,916.75 107.66 (10.23) 2,014.18 10.62 45.35 100.34 176.32 1.04 333.67 0.60 7.40 62.30 52.39 0.99 123.68 Nil 11.22 Nil 52.75 (0.43) 162.21 (4.56) 224.15 Nil 2.03 (4.99) 452.36 1.70 1.78 121.96 129.36 1,223.93 1,286.23 169.17 139.06 45.06 1,561.82 26.65 1,583.08 Consolidated Financials I 151 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements The Tata Power Company Limited 5 b. Other Intangible Assets (Contd.) Description Cost Balance as at 1st April, 2017 ................ Additions ........................................................ Transferred to Discontinued Operations ..................................................... Disposal........................................................... Balance as at 31st March, 2018 ......... Accumulated amortisation and impairment Balance as at 1st April, 2017 ................ Amortisation expense - Continuing Operations ..................................................... Amortisation expense - Discontinued Operations ..................................................... Impairment [Refer Note 6(b)(i)] .............. Transferred to Discontinued Operations (Refer Note 17) ...................... Disposal of Assets ........................................ Balance as at 31st March, 2018 .......... Net carrying amount As at 31st March, 2018 ............................. As at 31st March, 2017 ............................. Notes: Computer Software $ Power Distribution Rights @ ` crore Total Right To Use Assets (Intake Channel) $ Customer Contracts acquired under business combination Copyrights, patents, other intellectual property rights, services and operating rights # 114.92 17.56 163.51 11.20 (120.08) Nil 12.40 Nil Nil 174.71 1,386.57 Nil Nil Nil 1,386.57 304.88 35.80 (24.95) (0.35) 315.38 Nil 27.69 1,969.88 92.25 Nil Nil 27.69 (145.03) (0.35) 1,916.75 52.92 36.00 37.91 137.25 Nil 264.08 0.37 6.61 62.43 47.51 1.04 117.96 15.81 Nil (58.48) Nil 10.62 Nil 2.74 Nil Nil 45.35 Nil Nil Nil Nil 100.34 3.40 0.02 (11.47) (0.39) 176.32 Nil Nil Nil Nil 1.04 19.21 2.76 (69.95) (0.39) 333.67 1.78 62.00 129.36 127.51 1,286.23 1,348.66 139.06 167.63 26.65 1,583.08 Nil 1,705.80 # Internally generated Intangible Assets. $ Other than internally generated Intangible Assets. @ Power Distribution Rights relate to the value of construction service obligation for construction and upgradation of the power supply infrastructure in Ajmer city as per the agreement with Ajmer Vidyut Vitaran Nigam Ltd. Depreciation/Amortisation-Continuing Operations: Depreciation on Tangible Assets ............................................................................................ Add: Depreciation on Investment Property........................................................................ Add: Amortisation on Intangible Assets .............................................................................. Total .................................................................................................................................................. For the year ended 31st March, 2019 ` crore 2,269.45 Nil 123.68 2,393.13 For the year ended 31st March, 2018 ` crore 2,228.17 0.04 117.96 2,346.17 152 I Consolidated Financials 100th Annual Report 2018-19 6 a. Investments accounted for using the Equity Method Notes to the Consolidated Financial Statements As at 31st March, 2019 As at 31st March, 2018 Quantity Quantity As at 1st April, 2017 Quantity Face Value (in ` unless stated otherwise) As at 31st March, 2019 As at 31st March, 2018 ` crore ` crore As at 1st April, 2017 ` crore Nil Nil 1,34,22,037 10 3,350 1,825 Nil Nil 19,200 10,74,320 Nil 3,350 1,825 Nil Nil 19,200 10,74,320 Nil 3,350 1,825 59,08,82,000 Nil 19,200 10,74,320 9,67,500 10 900 10 10 100 Nu 1,000 100 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 Nil Nil 77,929 Nil 23,86,80,000 49,28,40,000 4,32,50,002 1,01,97,800 3,93,00,000 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 14,736 Nil 23,86,80,000 49,28,40,000 4,32,50,002 1,01,97,800 3,93,00,000 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 14,736 66,660 23,86,80,000 49,28,40,000 4,32,50,002 1,81,17,800 3,93,00,000 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 10 10 10 10 10 10 Nil Nil 0.01 0.17 Nil Nil 5.31 91.57 Nil 97.06 5,270.77 ** Nil 3,458.27 0.28 1,205.90 18.88 Nil * 253.14 181.86 1,181.76 ** 0.73 362.05 ** Nil Nil Nil 5.02 Nil 465.81 567.31 23.59 Nil Nil 12,995.37 1,102.74 11,892.63 Nil Nil 0.01 0.17 Nil Nil 5.31 98.09 Nil 103.58 4,298.24 ** Nil 3,263.02 0.25 959.64 11.45 Nil * 231.49 173.77 1,147.90 ** 0.32 344.50 ** Nil 131.61 456.30 11.60 Nil 440.12 556.60 23.64 Nil Nil 12,050.45 1,042.37 11,008.08 105.99 105.99 0.01 0.17 275.33 Nil 5.31 109.53 409.76 800.11 4,062.03 ** Nil 3,234.67 0.24 766.48 7.45 Nil * 225.27 190.02 1,039.71 ** 0.18 341.03 Nil 178.49 413.24 0.51 0.07 424.41 588.24 23.68 Nil Nil 11,495.72 2,905.73 8,589.99 N.A. Nil 96.83 ** 91.25 ** Nil 96.83 Nil 11,989.69 91.25 Nil 11,111.66 Nil Nil 9,496.09 I II Investment in Associates (a) Investment in Equity Shares fully Paid-up Quoted Tata Communications Ltd. ................................................................... (b) Investment in Equity Shares fully Paid-up Unquoted Brihat Trading Pvt. Ltd. ......................................................................... The Associated Building Co. Ltd. ....................................................... Panatone Finvest Ltd. ! .......................................................................... Nelito Systems Ltd. $ ............................................................................. Yashmun Engineers Ltd. ....................................................................... Dagachhu Hydro Power Corporation Ltd. ..................................... Tata Projects Ltd. $ ................................................................................. Investment in Joint Ventures (a) Investment in Equity Shares fully Paid-up 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 $ ...................................................... Resurgent Power Ventures Pte. Ltd. ................................................. LTH Milcom Pvt. 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 [Refer Note 6 b. (i) & (ii)] ............................................................... (b) ** Investment in Perpetual Securities in Joint Ventures Unquoted Adjaristsqali Netherlands BV ............................................................ Less: Impairment in the value of Investments [Refer Note 6 b.(ii)] ......................................................................... Total .......................................................................................................................................... Notes: * ! $ ** Denotes figure below ` 50,000. Classified as held for sale in the previous years and Sold during the year. Classified as held for sale. Impairment in the value of Investments. 1. 2. 3. 4. Aggregate Market Value of Quoted Investments Aggregate Carrying Value of Quoted Investments Aggregate Carrying Value of Unquoted Investments (Net of Impairment) Shares pledged : The Group has pledged shares of joint ventures with the lenders for borrowings availed by the respective joint ventures. Details Category Itezhi Tezhi Power Corporation $ .................................................................................................................... Mandakini Coal Company Ltd. ........................................................................................................................ Powerlinks Transmission Ltd. ........................................................................................................................... Industrial Energy Ltd. .......................................................................................................................................... Joint Venture Joint Venture Joint Venture Joint Venture Nil Nil 11,989.69 Nil Nil 11,111.66 969.14 105.99 9,390.10 31st March, 2019 Nos. 452,500 20,043,000 238,680,000 251,348,400 31st March, 2018 Nos. 4,52,500 20,043,000 238,680,000 251,348,400 1st April, 2017 Nos. 4,52,500 20,043,000 238,680,000 251,348,400 Consolidated Financials I 153 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 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: Sr. No. A B C D Name of Associate Principal Activity Tata Communicatons Limited ^ .... Telecommunications Panatone Finvest Limited ^ ............ Tata Projects Limited $ ..................... EPC Contracts Hydro Power Dagachhu Hydro Power Generation Company Corporation Limited .......................... Investments, NBFC 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, 2019 Nil Nil 47.78% As at 31st March, 2018 4.71% 39.98% 47.78% As at 1st April, 2017 4.71% 39.98% 47.78% Bhutan 26.00% 26.00% 26.00% ^ The Group through its associate “Panatone Finvest Limited”, held 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 were classified as an associate and accounted for using the Equity Method. During the year the Group has sold these investments Refer Note 6b. (iv). $ Classified as held for sale during FY 18. Summarised Financial Information of Material Associates: A Tata Communications Limited Summarised Balance Sheet: Non-current Assets .......................................................................................................................................................... Current Assets .................................................................................................................................................................... Non-current Liabilities .................................................................................................................................................... Current Liabilities ............................................................................................................................................................. Net Assets ........................................................................................................................................................................... As at 1st April, 2017 ` crore 15,916.50 5,185.79 (11,099.85) (8,392.17) 1,610.27 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 interest in Tata Communication Limited ........................................ B Panatone Finvest Limited Summarised Balance Sheet: Non-current Assets .......................................................................................................................................................... Current Assets .................................................................................................................................................................... Non-current Liabilities .................................................................................................................................................... Current Liabilities ............................................................................................................................................................. Net Assets ........................................................................................................................................................................... As at 1st April, 2017 ` crore 1,610.27 4.71% 75.84 30.15 105.99 As at 1st April, 2017 ` crore 663.65 21.30 Nil (0.05) 684.90 Reconciliation of the above summarised financial information to the carrying amount of the interest in Panatone Finvest Limited recognised in the consolidated financial statements: Net Assets of Panatone Finvest Limited ................................................................................................................... Proportion of the Group's ownership interest in Panatone Finvest Limited .............................................. Goodwill .............................................................................................................................................................................. Carrying amount of the Group's interest in Panatone Finvest Limited ............................................... As at 1st April, 2017 ` crore 684.90 39.98% 273.82 1.51 275.33 154 I Consolidated Financials 100th Annual Report 2018-19 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements C Tata Projects Ltd. Summarised Balance Sheet: Non-current Assets .......................................................................................................................................................... Current Assets .................................................................................................................................................................... Non-current Liabilities .................................................................................................................................................... Current Liabilities ............................................................................................................................................................. Net Assets ........................................................................................................................................................................... As at 1st April, 2017 ` crore 612.33 6,195.33 (57.72) (5,753.71) 996.23 Reconciliation of the above summarised financial information to the carrying amount of the interest in Tata Projects Ltd. recognised in the consolidated financial statements: Net Assets of Tata Projects Ltd. .................................................................................................................................... Proportion of the Group's ownership interest in Tata Projects Ltd. ............................................................... Goodwill .............................................................................................................................................................................. Deferred Tax Liability on Unrealised profits ............................................................................................................ Elimination of Unrealised Profits ................................................................................................................................ Carrying amount of the Group's interest in Tata Projects Ltd. ................................................................. D Dagachhu Hydro Power Corporation Ltd. Summarised Balance Sheet: Non-current Assets ................................................................. Current Assets ........................................................................... Non-current Liabilities ........................................................... Current Liabilities .................................................................... Net Assets .................................................................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 1,120.36 52.22 (751.58) (68.79) 352.21 As at 31st March, 2018 ` crore 1,165.90 52.26 (787.26) (53.83) 377.07 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 .................................................................................................................................... As at 1st April, 2017 ` crore 996.23 47.78% 476.00 23.30 (84.00) (5.54) 409.76 As at 1st April, 2017 ` crore 1,214.02 45.99 (788.34) (50.40) 421.27 For the year ended 31st March, 2019 ` crore 124.36 (24.83) (0.04) (24.87) For the year ended 31st March, 2018 ` crore 128.30 (43.94) (0.02) (43.96) Nil Nil Consolidated Financials I 155 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 6 a. Investments accounted for using the Equity Method (Contd.) 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 interest in Dagachhu Hydro Power Corporation Ltd. ........................................................ Carrying amount of the Group's interest in Dagachhu Hydro Power Corporation Ltd. .................................................... As at 31st March, 2019 ` crore 352.21 As at 31st March, 2018 ` crore 377.07 As at 1st April, 2017 ` crore 421.27 26.00% 91.57 26.00% 98.09 26.00% 109.53 II Details of individually not Material Associates Name of Associate Principal Activity Place of Incorporation and Principal Place of Business Proportion of Ownership Interest / Voting Rights held by the Group As at 31st March, 2019 As at 31st March, 2018 As at 1st April, 2017 Nelito Systems Ltd. $ Yashmun Engineers Ltd. Indian IT Solution and Services Billing and other related Services Brihat Trading Private Ltd. Trading Business The Associated Building Services Provided for Building Co. Ltd. $ Partially Sold during FY 18 and balance classified as held for sale India 28.15% 28.15% 28.15% India India India 27.27% 33.21% 27.27% 33.21% 27.27% 33.21% 33.14% 33.14% 33.14% 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) ....................................... As at 31st March, 2019 ` crore 0.01 Nil 0.01 As at 31st March, 2018 ` crore Nil Nil Nil Aggregate carrying amount of the Group’s interests in these Associates .................................................................................... 5.49 5.49 5.49 As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Unrecognised share of losses of an Associate ........................................................................ As at 31st March, 2019 ` crore Nil As at 31st March, 2018 ` crore Nil Cumulative share of loss of an associate ..................................... As at 31st March, 2019 ` crore Nil As at 31st March, 2018 ` crore Nil As at 1st April, 2017 ` crore Nil 156 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 6 a. Investments accounted for using the Equity Method (Contd.) 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 Sr. No. A B C D E F G PT Kaltim Prima Coal ................................. Indocoal Resources (Cayman) Ltd. # .... PT Nusa Tambang Pratama ..................... PT Baramulti Suksessarana TBK ............. Itezhi Tezhi Power Corporation $ ........... Powerlinks Transmission Ltd. .................. Industrial Energy Ltd. ................................. Coal mining and exploration Coal Trading Infrastructure Support for Coal Business Coal mining and trading Hydro power generation Power transmission Power generation and operation of power plant # Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2019. $ classified as held for sale Place of Incorporation and Principal Place of Business Indonesia Cayman Island Indonesia Indonesia Zambia India India Proportion of Ownership Interest and Voting Rights held by the Group As at 31st March, 2019 30.00% 30.00% 30.00% 26.00% 50.00% 51.00% 74.00% As at 31st March, 2018 30.00% 30.00% 30.00% 26.00% 50.00% 51.00% 74.00% As at 1st April, 2017 30.00% 30.00% 30.00% 26.00% 50.00% 51.00% 74.00% A PT Kaltim Prima Coal Summarised Balance Sheet: Non-current Assets ...................................................................... Current Assets ................................................................................ Non-current Liabilities ................................................................ Current Liabilities ......................................................................... Net Assets ....................................................................................... 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) ............................................................ Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 2,281.01 8,876.94 (1,629.22) (4,452.88) 5,075.85 As at 31st March, 2018 ` crore 2,763.42 5,743.19 (1,974.93) (4,039.08) 2,492.60 284.90 (1,676.67) (46.09) 537.72 (1,887.28) (127.26) As at 1st April, 2017 ` crore 3,563.10 4,381.68 (2,168.47) (4,005.21) 1,771.10 459.65 (2,270.68) (224.02) Revenue ............................................................................................................................................ Profit for the year ........................................................................................................................... Other Comprehensive Income/(Expense) for the year .................................................... Total Comprehensive Income for the year ...................................................................... Dividends received 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, 2019 ` crore 25,997.34 2,461.62 (4.97) 2,456.65 - For the year ended 31st March, 2018 ` crore 25,518.19 3,632.14 (34.58) 3,597.56 867.89 972.14 121.91 22.26 2,271.48 1,039.66 25.19 56.08 3,013.66 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) ........................................... As at 31st March, 2019 ` crore 5,075.85 As at 31st March, 2018 ` crore 2,492.60 As at 1st April, 2017 ` crore 1,771.10 30.00% 1,522.76 3,748.01 5,270.77 (484.79) 4,785.99 30.00% 747.78 3,550.46 4,298.24 (456.71) 3,841.53 30.00% 531.33 3,530.70 4,062.03 (2,665.78) 1,396.25 Consolidated Financials I 157 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements The Tata Power Company Limited B Indocoal Resources (Cayman) Ltd. Summarised Balance Sheet: Non-current Assets ......................................................... Current Assets ................................................................... Non-current Liabilities ................................................... Current Liabilities ............................................................ Net Assets ......................................................................... 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) .................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 3,634.66 69.01 Nil (1,375.16) 2,328.51 As at 31st March, 2018 ` crore 3,410.44 38.08 Nil (1,269.89) 2,178.63 As at 1st April, 2017 ` crore 2,141.32 1,179.03 Nil (1,184.44) 2,135.91 Nil Nil Nil Nil Nil Nil Nil Nil Nil Revenue ............................................................................................................................. Profit for the year ............................................................................................................ Other Comprehensive Income/(Expense) for the year ..................................... Total Comprehensive Income for the year ....................................................... Dividends received 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, 2019 ` crore Nil 17.16 Nil 17.16 For the year ended 31st March, 2018 ` crore Nil 36.70 Nil 36.70 Nil Nil 16.64 Nil Nil Nil Nil 25.50 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: Net Assets of Indocoal Resources (Cayman) Ltd. Proportion of the Group's ownership interest in Indocoal Resources (Cayman) Ltd. ......................... Goodwill ......................................................................... Carrying amount of the Group's interest in Indocoal Resources (Cayman) Ltd. ..................... As at 31st March, 2019 ` crore 2,328.51 As at 31st March, 2018 ` crore 2,178.63 As at 1st April, 2017 ` crore 2,135.91 30.00% 698.55 2,759.72 30.00% 653.59 2,609.43 30.00% 640.77 2,593.90 3,458.27 3,263.02 3,234.67 158 I Consolidated Financials 100th Annual Report 2018-19 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements C PT Nusa Tambang Pratama Summarised Balance Sheet: Non-current Assets ......................................................... Current Assets ................................................................... Non-current Liabilities ................................................... Current Liabilities ............................................................ Net Assets ......................................................................... 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) .................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 2,087.87 3,296.74 (120.09) (1,241.67) 4,022.85 As at 31st March, 2018 ` crore 2,096.85 2,274.84 (91.32) (1,078.55) 3,201.82 As at 1st April, 2017 ` crore 2,214.90 1,430.68 (73.94) (1,016.30) 2,555.34 260.31 (631.19) Nil 125.28 (594.83) Nil 216.25 (591.85) Nil Revenue ............................................................................................................................. Profit for the year ............................................................................................................ Other Comprehensive Income/(Expense) for the year ..................................... Total Comprehensive Income for the year ....................................................... For the year ended 31st March, 2019 ` crore 1,018.88 631.98 (0.02) 631.96 For the year ended 31st March, 2018 ` crore 1,021.00 623.95 (0.05) 623.90 Dividends received during the year ........................................................................ The above profit/(loss) for the year include the following: Depreciation and Amortisation ................................................................................ Interest Income ............................................................................................................... Interest Expense ............................................................................................................. Income-tax Expense ...................................................................................................... Nil 138.59 68.02 61.43 217.47 Nil 127.79 30.07 56.64 202.90 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 ............... 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 ................................... As at 31st March, 2019 ` crore 4,022.85 As at 31st March, 2018 ` crore 3,201.82 As at 1st April, 2017 ` crore 2,555.34 30.00% 1,205.90 Nil 1,205.90 30.00% 959.64 Nil 959.64 30.00% 766.48 Nil 766.48 Consolidated Financials I 159 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements The Tata Power Company Limited D PT Baramulti Suksessarana TBK Summarised Balance Sheet: Non-current Assets ......................................................... Current Assets ................................................................... Non-current Liabilities ................................................... Current Liabilities ............................................................ Net Assets ......................................................................... 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) .................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 1,099.66 538.29 (128.28) (455.16) 1,054.51 As at 31st March, 2018 ` crore 878.52 700.94 (36.43) (430.89) 1,112.14 As at 1st April, 2017 ` crore 830.85 527.29 (40.04) (603.88) 714.22 35.95 (49.68) (90.77) 256.93 (54.22) Nil 293.30 (331.13) (6.29) Revenue ............................................................................................................................. Profit for the year ............................................................................................................ Other Comprehensive Income/(Expense) for the year ..................................... Total Comprehensive Income for the year ....................................................... For the year ended 31st March, 2019 ` crore 3,169.25 353.62 1.71 355.33 For the year ended 31st March, 2018 ` crore 2,554.05 551.12 (0.11) 551.01 Dividends received during the year ........................................................................ The above profit/(loss) for the year include the following: Depreciation and amortisation ................................................................................. Interest Income ............................................................................................................... Interest Expense ............................................................................................................. Income-tax Expense ...................................................................................................... 125.39 109.93 3.83 6.12 127.32 41.89 71.91 4.04 3.05 187.47 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) ..................................................................... As at 31st March, 2019 ` crore 1,054.51 As at 31st March, 2018 ` crore 1,112.14 As at 1st April, 2017 ` crore 714.22 26.00% 274.17 907.59 1,181.76 (255.90) 26.00% 289.16 858.74 1,147.90 (241.16) 26.00% 185.70 854.01 1,039.71 (239.95) 925.86 906.74 799.76 160 I Consolidated Financials 100th Annual Report 2018-19 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements E. Itezhi Tezhi Power Corporation $ Summarised Balance Sheet: Non-current Assets ........................................................................................................ Current Assets .................................................................................................................. Non-current Liabilities .................................................................................................. Current Liabilities ........................................................................................................... Net Assets ........................................................................................................................ As at 31st March, 2018 ` crore 1,121.14 804.34 (1,174.12) (213.72) 537.64 As at 1st April, 2017 ` crore 1,156.27 584.59 (1,093.07) (197.17) 450.62 The above amounts of assets and liabilities include the following: ............ Cash and Cash Equivalents ......................................................................................... Current Financial Liabilities (excluding trade payables and provisions) .... (excluding trade payables and Non-current Financial Liabilities provisions)......................................................................................................................... 133.30 (121.13) 156.35 (101.70) (809.58) (907.21) Summarised Statement of Profit and Loss: Revenue ............................................................................................................................................................................. Profit for the year ............................................................................................................................................................ Other Comprehensive Income/(Expense) for the year ..................................................................................... Total Comprehensive Income for the year ....................................................................................................... For the year ended 31st March, 2018 ` crore 384.35 83.80 Nil 83.80 Dividends received during the year ........................................................................................................................ The above profit/(loss) for the year include the following: Depreciation and Amortisation ................................................................................................................................ Interest Income ............................................................................................................................................................... Interest Expense ............................................................................................................................................................. Income-tax Expense ...................................................................................................................................................... Nil 43.93 0.02 61.73 189.96 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 .................................................................................................................... As at 31st March, 2018 ` crore 537.64 As at 1st April, 2017 ` crore 450.62 50.00% 268.82 187.48 456.30 50.00% 225.31 187.93 413.24 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 161 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements The Tata Power Company Limited F Powerlinks Transmission Limited Summarised Balance Sheet: Non-current Assets ......................................................... Current Assets ................................................................... Non-current Liabilities ................................................... Current Liabilities ............................................................ Net Assets ......................................................................... 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) .................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 858.13 120.37 (2.36) (62.74) 913.40 As at 31st March, 2018 ` crore 848.20 290.16 (5.10) (270.28) 862.98 As at 1st April, 2017 ` crore 914.53 265.73 (188.90) (157.29) 834.07 0.02 (4.87) Nil 15.66 (165.91) Nil 0.08 (114.70) (156.64) 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, 2019 ` crore 146.14 112.57 (0.09) 112.48 For the year ended 31st March, 2018 ` crore 161.23 124.84 (0.18) 124.66 26.25 Nil 4.42 9.73 15.61 40.58 Nil 3.77 16.92 13.93 Reconciliation of the above summarised financial information to the carrying amount of the interest in Powerlinks Transmission Ltd. recognised in the consolidated financial statements: Net Assets of Powerlinks Transmission Ltd. ........... Proportion of the Group's ownership interest in Powerlinks Transmission Ltd. ...................................... Deferred Tax Liabilities on Undistributed Profit ... Carrying amount of the Group's interest in Powerlinks Transmission Ltd. .......................... As at 31st March, 2019 ` crore 913.40 As at 31st March, 2018 ` crore 862.98 As at 1st April, 2017 ` crore 834.07 51.00% 465.81 Nil 465.81 51.00% 440.12 Nil 440.12 51.00% 425.38 (0.97) 424.41 162 I Consolidated Financials 100th Annual Report 2018-19 6 a. Investments accounted for using the Equity Method (Contd.) Notes to the Consolidated Financial Statements G Industrial Energy Limited Summarised Balance Sheet: Non-current Assets ......................................................... Current Assets ................................................................... Non-current Liabilities ................................................... Current Liabilities ............................................................ Net Assets ......................................................................... 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) .................................. Summarised Statement of Profit and Loss: As at 31st March, 2019 ` crore 1,433.23 305.72 (762.74) (209.55) 766.66 As at 31st March, 2018 ` crore 1,513.88 296.68 (753.95) (304.47) 752.14 As at 1st April, 2017 ` crore 1,587.00 288.31 (802.81) (270.80) 801.70 48.46 (184.52) (522.00) 1.99 (242.52) (528.10) 9.82 (227.16) (643.55) Revenue ............................................................................................................................. Profit for the year ............................................................................................................ Other Comprehensive Income/(Expense) for the year ..................................... Total Comprehensive Income for the year ............................................ Dividends received from Industrial Energy 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, 2019 ` crore 300.40 111.13 (0.25) 110.88 For the year ended 31st March, 2018 ` crore 372.61 50.36 0.28 50.64 59.14 Nil 0.98 64.69 50.97 61.61 Nil 0.45 73.84 96.42 Reconciliation of the above summarised financial information to the carrying amount of the interest in Industrial Energy Ltd. recognised in the consolidated financial statements: Net Assets of Industrial Energy Ltd. .......................... Proportion of the Group's ownership interest in Industrial Energy Ltd. ..................................................... Deferred Tax Liabilities on Undistributed Profit ... Carrying amount of the Group's interest in Industrial Energy Ltd. ................................................. As at 31st March, 2019 ` crore 766.66 As at 31st March, 2018 ` crore 752.14 As at 1st April, 2017 ` crore 801.70 74.00% 567.31 Nil 567.31 74.00% 556.60 Nil 556.60 74.00% 593.26 (5.02) 588.24 Consolidated Financials I 163 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 6 a. Investments accounted for using the Equity Method (Contd.) 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. # Adjaristsqali Netherlands BV Khoromkheti Netherlands BV # Cennergi Pty. Ltd. ^ Resurgent Power Ventures Pte. Ltd. # LTH Milcom Private Ltd. ^ Dugar Hydro Power Ltd. Tubed Coal Mines Ltd. # Mandakini Coal Company Ltd. # Note: Infrastructure Support for Coal Business Infrastructure Support for Coal Business Investments Infrastructure Support for Coal Business Infrastructure Support for Coal Business Electricity Support Services Coal Trading Hydro power generation Hydro power generation Wind power generation Investments and Services Investments and Services Hydro power generation Coal mining and trading Coal mining and trading Indonesia Indonesia Singapore Indonesia Indonesia Indonesia Cayman Island Netherlands Netherlands South Africa Singapore India India India India Proportion of Ownership Interest and Voting Rights held by the Group As at 31st March, 2019 28.38% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 40.00% 40.00% 50.00% 26.00% 26.00% 50.00% 40.00% 33.33% As at 31st March, 2018 28.38% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 40.00% 40.00% 50.00% 26.00% 26.00% 50.00% 40.00% 33.33% As at 1st April, 2017 28.38% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 40.00% 40.00% 50.00% 26.00% 26.00% 50.00% 40.00% 33.33% ^ Classified as held for sale # Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2019. Aggregate Summarised Financial Information of Joint Ventures that are not individually material The Group’s share of Profit/(Loss) from Continuing Operations (Refer Note Below) .............................................................................................................................................. The Group’s share of Other Comprehensive Income ..................................................... The Group’s share of Total Comprehensive Income/(Expense) .......................... For the year ended 31st March, 2019 ` crore 128.65 For the year ended 31st March, 2018 ` crore (49.98) Nil 128.65 Nil (49.98) Profit for the year ended 31st March, 2019 includes share of profit of Itezhi Tezhi Power Corporation - ₹ 89.04 crore which has been classified as held for sale during the year. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 942.38 (458.88) 483.50 1,019.88 (435.75) 584.13 966.94 - 966.94 As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore * * * Aggregate carrying amount of the Group's interests in these Joint Ventures .................................................................... Impairment of Investments ...................................................... Carrying amount of the Group's interest in these Joint Ventures .............................................................................. The unrecognised share of profit of Joint Ventures for the year ............................................................................................ Note: * Denotes figures below ` 50,000/-. 164 I Consolidated Financials 100th Annual Report 2018-19 6 b. Investments accounted for using the Equity Method Notes to the Consolidated Financial Statements (i) The Group had in accordance with Indian Accounting Standard 36 (Ind AS 36) – “Impairment of Assets”, carried out impairment assessment of its Mundra Ultra Mega Power Project (UMPP), shipping assets along with investments in Indonesian mining companies PT Kaltim Prima Coal (KPC) and PT Baramulti Suksessarana TBK (BSSR). All these Companies constitute a single cash generating unit (Mundra CGU). The Group has performed the impairment reassessment and determined the value in use based on estimated cash flow projections over the life of the assets included in CGU. The Group bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. For Mundra power plant, future cash flows is estimated based on remaining period of long term power purchase agreement (PPA) and thereafter based on management’s estimate on tariff and other assumptions. Cash flow projection of Mines is derived based on estimated coal production considering the renewal of license for operating the Mines. During the previous year, the Group had recorded net impairment reversal of ` 1,886.72 crore against carrying value of Mundra CGU which consist of reversal of impairment of investment of ` 2,197.66 crore, impairment of property, plant and equipment of ` 308.18 crore and impairment of Intangible Assets of ` 2.76 crore. During the year, the Group has performed the impairment reassessment and determined the value in use based on estimated cash flow projections over the life of the assets included in Mundra CGU. A reassessment of the assumptions used in estimating the impact of impairment, combined with the significant impact of unwinding of a year’s discount on the cash flows, would have resulted in a reversal of ` 1,052 crore of provision for impairment. Considering the significant uncertainties arising from ongoing renegotiation of the Mundra Power Purchase Agreement (PPA), as recommended by the High Powered Committee (HPC) and the pending renewal of the mining license in Indonesian coal mines, the Group has not effected such a reversal. The reversal of impairment has not resulted from any significant improvement in the estimated service potential of the concerned CGU. Key assumptions used for value in use calculation include coal prices, energy prices post the PPA period, discount rates and exchange rates. Short term coal prices and energy prices used in three to five years projections are based on market survey and expert analysis report. Afterwards increase in cost of coal and exchange rates are considered based on long term historical trend. Further, the Management strongly believes that mine licenses will be renewed post expiry. Discount rate represents the current market assessment of the risk specific to CGU taking into consideration the time value of money. Pre tax discount rate used in the calculation of value in use of investment in power plant is 10.61% p.a. (31st March 2018: 11.15% p.a.) and investment in coal mines and related infrastructure companies is 16.31% p.a. (31st March 2018: 21.95% p.a.). (ii) (iii) The Group holds investments in Adjaristsqali Netherlands B.V. (ABV) (a joint venture of the Group operating) 187 MW hydro power plant in Georgia. The Group, in accordance with Indian Accounting Standard 36 (Ind AS 36) – “Impairment of Assets” had performed the impairment assessment of ABV, a cash generating unit (CGU) and determined the value in use based on estimated cash flow projections over the life of the assets included in CGU and recorded impairment provision for ` 527.54 crore comprising entire investment amount of ` 429.77 crore and entire financial guarantee obligation for ` 97.77 crore and disclosed as an exceptional item in the previous year. Further during the year, Management has re-assessed the impairment and continue to believe that the impairment loss recognized need not be reversed. The Group’s investment in equity shares of Tata Teleservices Limited (‘TTSL’) which are measured at Fair Value Through Other Comprehensive Income were classified as held for sale during the previous year. During the year ended 31st March, 2019, the Group has sold the said investment and recognized a gain of ` 0.01 crore after reduction in fair value amounting to ` 1,438.42 crore recognized in earlier years. During the previous year ended 31st March, 2018, the Group had written put options on equity shares of TTSL. The changes in the fair value of these put options amounting to ` 107.08 crore was recognised as an exceptional expense in the statement of profit and loss. (iv) During the year, the Group sold investments in Tata Communications Limited and Panatone Finvest Limited (Associate Companies) which were classified as assets held for sale in the previous year. The resultant gain on sale of investments of ` 1,897.24 crore has been disclosed as an exceptional income in the statement of profit and loss. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 165 6 c. Other Investments Notes to the Consolidated Financial Statements The Tata Power Company Limited As at 31st March, 2019 As at 31st March, 2018 As at 1st April, 2017 Face Value (in ` unless stated otherwise) As at 31st March, 2019 As at 31st March, 2018 As at 1st April, 2017 Quantity Quantity Quantity ` crore ` crore ` crore through Other I Investments designated at Fair Value Comprehensive Income (a) Investment in Equity Shares fully Paid-up Quoted HDFC Bank Ltd. ................................................................................................... IDBI Bank Ltd. ...................................................................................................... Voltas Ltd. ............................................................................................................. Tata Consultancy Services Ltd. ..................................................................... Tata Motors Ltd. ................................................................................................. Tata Motors Ltd. - Differential Voting Rights ............................................ Tata Investment Corporation Ltd. ................................................................ Nil Nil 2,33,420 766 3,57,159 51,022 7,94,416 Nil Nil 2,33,420 383 3,57,159 51,022 8,57,143 7,500 1,42,720 2,33,420 4,85,354 3,57,159 51,022 8,57,143 (b) Investment in Equity Shares fully Paid-up Unquoted Tata Industries Ltd. * ......................................................................................... Tata Sons Pvt. Ltd. * .......................................................................................... Haldia Petrochemicals Ltd. ............................................................................. Tata Teleservices Ltd. $ .................................................................................... Tata International Ltd. * ................................................................................... Tata Services Ltd. ............................................................................................... Taj Air Ltd. ............................................................................................................. Tata Capital Ltd ................................................................................................... 68,28,669 6,673 2,24,99,999 Nil 24,000 1,664 79,00,760 23,33,070 68,28,669 6,673 2,24,99,999 44,66,20,590 24,000 1,664 79,00,760 23,33,070 68,28,669 6,673 2,24,99,999 32,83,97,823 24,000 1,664 79,00,760 23,33,070 2 10 1 1 10 10 2 100 1,000 10 10 1,000 1,000 10 10 Nil Nil 14.62 0.15 6.23 0.44 66.52 87.96 115.47 194.70 56.48 Nil 18.77 Nil Nil 12.29 397.71 485.67 Nil Nil 14.50 0.11 11.67 0.94 63.05 90.27 115.47 194.70 56.48 Nil 18.77 Nil Nil 11.66 397.08 487.35 1.08 1.07 9.62 118.03 16.63 1.53 54.51 202.47 115.47 194.70 56.48 384.88 18.77 Nil Nil 7.79 778.09 980.56 II Investments carried at Fair Value through Profit or Loss (a) Investment in Equity Shares fully Paid-up Quoted Geodynamics Ltd. .............................................................................................. (b) Investment in Equity Shares fully Paid-up Unquoted Zoroastrian Co-operative Bank Ltd. ............................................................ III Investments carried at Amortised Cost (a) Statutory Investments (i) Contingencies Reserve Fund Investments Government Securities (Unquoted) fully paid-up ........................ (ii) Deferred Taxation Liability Fund Investments Government Securities (Unquoted) fully paid-up ........................ Total ........................................................................................................................................... 2,94,00,000 2,94,00,000 2,94,00,000 AUD 1.50 1.18 2.12 1.60 6,000 6,000 6,000 25 0.16 1.34 0.15 2.27 0.14 1.74 136.65 111.74 90.75 237.75 374.40 861.41 279.75 391.49 881.11 206.09 296.84 1,279.14 Notes: 1. 2. 3. 4. * $ 204.07 Aggregate Market Value of Quoted Investments ............................................................................................................................................................................... 204.07 Aggregate Carrying Value of Quoted Investments ............................................................................................................................................................................ Aggregate Carrying Value of Unquoted Investments ....................................................................................................................................................................... 1,075.07 Investments at Fair Value Through Other Comprehensive Income (FVTOCI) reflect investment in quoted and unquoted equity securities. These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in similar line of business as the Company, thus disclosing their fair value change in profit and loss will not reflect the purpose of holding. The cost of these 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. Classified as held for sale 89.14 89.14 772.27 92.39 92.39 788.72 166 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 7. Trade Receivables (Unsecured unless otherwise stated) Non-current Trade Receivables Considered Good - Unsecured ............................................ Credit Impaired ......................................................................... Less: Allowance for Doubtful Trade Receivables ........... Current Trade Receivables Considered Good - Secured (Refer Note below) ........... Considered Good - Unsecured ............................................ Credit Impaired ......................................................................... Less: Allowance for Doubtful Trade Receivables ........... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 192.99 4.55 197.54 4.55 192.99 291.07 4,154.19 391.47 4,836.73 391.47 4,445.26 190.05 6.24 196.29 6.24 190.05 271.32 2,517.61 323.23 3,112.16 323.23 2,788.93 187.92 6.24 194.16 6.24 187.92 250.53 3,581.59 310.58 4,142.70 310.58 3,832.12 Note: The Group holds security deposits of ` 291.07 crore (31st March, 2018 - ` 271.32 crore, 1st April, 2017 - ` 250.53 crore) from consumers. 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 expected credit loss allowance is not calculated on non current trade receivables on account of dispute. 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 of Receivables Expected Credit loss (%)* Within the credit period ................................................................................................................... 1-90 days past due ............................................................................................................................. 91-182 days past due ........................................................................................................................ More than 182 days past due ......................................................................................................... * Excludes Special allowances. As at 31st March, 2019 0.36% 0.48% 0.94% 15.86% As at 31st March, 2018 0.09% 1.00% 2.56% 9.00% Age of receivables Within the credit period ...................................................................... 1-90 days past due ................................................................................ 91-182 days past due ........................................................................... More than 182 days past due ............................................................ As at 31st March, 2019 ` crore 2,401.08 1,165.39 416.25 1,051.55 As at 31st March, 2018 ` crore 958.58 793.96 263.97 1,291.94 As at 1st April, 2017 ` crore 1,972.76 807.88 731.28 824.94 Movement in the allowance for doubtful trade receivables Balance at the beginning of the year ....................................................................................................... Add/(Less): Expected credit loss allowance on trade receivables calculated at lifetime expected credit losses for the year ........................................................................................................................... Add/(Less): Special allowance on trade receivables for the year .................................................................... Add/(Less): Transferred to Assets Classified as Held For Sale (Refer Note 17 c) ............................................ Balance at the end of the year ..................................................................................................................... As at 31st March, 2019 ` crore 329.47 As at 31st March, 2018 ` crore 316.82 53.09 25.00 (11.54) 396.02 38.94 (16.63) (9.66) 329.47 The concentration of credit risk is very limited due to the fact that the large customers are mainly government entities and remaining customers base is large and widely dispersed and secured with security deposit. Consolidated Financials I 167 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 8. Loans (Unsecured unless otherwise stated) As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Non-current - At Amortised Cost (i) Security Deposits Considered Good ............................................................... Credit Impaired ................................................................... Less: Provision for Doubtful Security Deposits ......... (ii) Loans to Related Parties - Joint Ventures (Refer Note 38) Considered Good* ............................................................. Credit Impaired ................................................................... Less: Allowances for Doubtful Loans ........................... (iii) Other Loans Loans to Employees ........................................................... Total ........................................................................................................... Current - At Amortised Cost Security Deposits (i) Considered Good ......................................................................... Credit Impaired ............................................................................. Less: Allowances for Doubtful Security Deposits .... (ii) Loans to Related Parties - Joint Ventures (Refer Note 38) Considered Good ......................................................................... Credit Impaired ............................................................................. Less: Allowances for Doubtful Loans ........................... 84.32 27.87 112.19 27.87 84.32 54.17 1.36 55.53 1.36 54.17 6.24 144.73 17.32 5.77 23.09 5.77 17.32 98.71 Nil 98.71 Nil 98.71 (iii) Other Loans Loans to Employees ........................................................... Total ........................................................................................................... 0.43 116.46 * Classified as Held for Sale. (Refer Note 17). 55.25 29.92 85.17 29.92 55.25 69.72 1.36 71.08 1.36 69.72 6.76 131.73 64.13 4.23 68.36 4.23 64.13 719.33 Nil 719.33 Nil 719.33 1.34 784.80 60.16 32.81 92.97 32.81 60.16 69.64 1.27 70.91 1.27 69.64 7.52 137.32 22.13 2.93 25.06 2.93 22.13 654.68 Nil 654.68 Nil 654.68 0.76 677.57 9. Finance Lease Receivable - At Amortised Cost (Unsecured unless otherwise stated) Accounting Policy Leasing arrangement The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. The Group as lessee A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Group is classified as a finance lease. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term. 168 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 9. Finance Lease Receivable - At Amortised Cost (Contd.) The Group as lessor Leases in which the Group does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Group to the lessee. Amounts due from lessees under finance leases are recorded as receivables at 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 net investment outstanding in respect of the lease. Finance Lease Receivable - Non-current ...................................... Finance Lease Receivable - Current ............................................... Total .......................................................................................................... 9.1 Leasing Arrangements As at 31st March, 2019 ` crore 565.62 37.90 603.52 As at 31st March, 2018 ` crore 574.76 34.27 609.03 As at 1st April, 2017 ` crore 573.47 39.16 612.63 (i) (ii) 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 is an embedded finance lease. The Group has entered into Power Purchase Agreements (PPA) with various customers for its rooftop solar assets located across various locations. As this arrangement is dependent on the use of a specific asset and conveys a right to use on the customer, it qualifies as a lease. As these are long tenor PPAs spread over a major part of the economic life of the asset, this arrangement has been categorized as a finance lease. 9.2 Amount receivable under Finance Lease Minimum Lease Payments Present value of Minimum Lease Payments As at 31st March, 2019 ` crore 110.25 529.64 631.68 1,271.57 668.05 603.52 Nil 603.52 As at 31st March, 2018 ` crore 107.94 520.65 713.51 1,342.10 733.07 609.03 Nil 609.03 As at 1st April, 2017 ` crore 107.58 504.71 795.49 1,407.78 795.15 612.63 Nil 612.63 As at 31st March, 2019 ` crore 37.90 172.83 392.79 603.52 Nil 603.52 Nil 603.52 As at 31st March, 2018 ` crore 34.27 147.90 426.86 609.03 Nil 609.03 Nil 609.03 As at 1st April, 2017 ` crore 39.16 117.68 455.79 612.63 Nil 612.63 Nil 612.63 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 ............. Allowance for uncollectible lease payments ................. Total ............................................................................................. The implicit 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 9.00% - 16.34% per annum (as at 31st March, 2018: 12.62% - 16.34% per annum, as at 1st April 2017: 12.76% - 16.34% per annum). E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 169 The Tata Power Company Limited 10. Other Financial Assets Notes to the Consolidated Financial Statements Non-current - At Amortised Cost (i) Receivables under Service Concession Agreement .............. (ii) Unbilled Revenue................................................................................... (iii) Others Unsecured, considered good Advance towards Equity ..................................................... Government Grants Receivables * .................................. In Deposit Accounts (with maturity more than twelve months) ...................................................................... Other Advances ..................................................................... Total ........................................................................................................................ As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 200.61 81.11 2.85 29.17 2.99 0.02 35.03 316.75 202.18 62.82 0.65 Nil Nil 8.03 8.68 273.68 203.94 42.91 9.03 Nil Nil 139.46 148.49 395.34 * One of the subsidiary of the Group is eligible for government grant for certain solar projects. The subsidiary company is in the process of creating charge on project assets in favour of Solar Energy Corporation of India. Once the charge is created, the subsidiary company will file application for release of the grant. Current - At Amortised Cost, unless otherwise stated (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 ............. Unsecured, considered doubtful Interest Accrued on Inter-corporate/Bank Deposits Less: Provision for Doubtful Interest ......................................... (ii) Receivables under Service Concession Agreement .............. (iii) Others Unsecured, considered good Dividend Receivable............................................................. Derivative Contract (Fair Value through Profit and Loss) ........................................................................................... Receivable on sale of Current Investments .................. Receivable on sale of Fixed Assets .................................. Insurance Claims Receivable ............................................. Government Grants Receivables ..................................... Other Advances ..................................................................... Unsecured, considered doubtful Other Advances ..................................................................... Less: Allowances Doubtful Advances ................................................ Total ........................................................................................................................ 170 I Consolidated Financials 2.52 6.69 6.96 2.40 1.40 19.97 1.40 18.57 2.64 16.71 24.76 39.73 2.05 3.52 58.05 75.56 2.70 (2.70) 220.38 241.59 0.86 6.65 7.15 14.63 Nil 29.29 Nil 29.29 4.18 35.81 111.59 0.01 1.02 6.47 40.25 172.97 1.79 (1.79) 368.12 401.59 2.35 5.09 11.73 11.98 Nil 31.15 Nil 31.15 4.48 Nil 37.97 Nil 2.23 21.15 Nil 84.25 2.80 (2.80) 145.60 181.23 100th Annual Report 2018-19 11. Tax Assets Notes to the Consolidated Financial Statements Non-current Tax Assets Advance Income-tax (Net) ................................................................ Total .......................................................................................................... Current Tax Assets Advance Income-tax (Net) ................................................................ Total .......................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 238.01 238.01 2.67 2.67 167.59 167.59 14.77 14.77 146.35 146.35 31.68 31.68 12. Deferred Tax Accounting Policy 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 each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax 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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. 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. The Group reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period. In the situations where one or more units of the Group are entitled to a tax holiday under the tax law, no deferred tax (asset or liability) is recognized in respect of temporary differences which reverse during the tax holiday period, to the extent the concerned unit’s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of temporary differences which reverse after the tax holiday period is recognized in the year in which the temporary differences originate. However, the Company restricts recognition of deferred tax assets to the extent it is probable that sufficient future taxable income will be available against which such deferred tax assets can be realized. For recognition of deferred taxes, the temporary differences which originate first are considered to reverse first. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Consolidated Financials I 171 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements 12. Deferred Tax (Contd.) 12 a. Deferred Tax Assets The Tata Power Company Limited Deferred Tax Assets .............................................................................. Deferred Tax Liabilities ....................................................................... Total - Net Deferred Tax Assets .................................................... As at 31st March, 2019 ` crore 3,669.65 3,580.16 89.49 As at 31st March, 2018 ` crore 4,124.19 4,006.02 118.17 As at 1st April, 2017 ` crore 5,166.26 5,042.14 124.12 2018-19 Opening Balance Recognised in Profit or Loss Recognised in Other Comprehensive 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 ... Unabsorbed Depreciation .......................................................... Measuring of Derivative Financial Instruments at Fair Value .................................................................................................. Carry Forward Losses ................................................................... MAT Credit Entitlement ............................................................... Deferred Revenue -Ind AS 115 ................................................. Others ................................................................................................ Deferred Tax Liabilities in relation to: Property, Plant and Equipment ................................................ Others ................................................................................................ Net Deferred Tax Assets ........................................................... 53.09 10.98 3,481.33 149.07 195.47 101.73 132.52 Nil 4,124.19 3,986.75 19.27 4,006.02 118.17 (3.57) (1.71) (406.05) (122.44) (39.37) 3.41 113.27 1.92 (454.54) (411.20) (14.66) (425.86) (28.68) 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 2017-18 Opening Balance Recognised in Profit or Loss Recognised in Other Comprehensive Income Recognised directly in Equity ` crore Closing Balance 49.52 9.27 3,075.28 26.63 156.10 105.14 245.79 1.92 3,669.65 3,575.55 4.61 3,580.16 89.49 ` crore Closing Balance 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 ................................................................... Deferred Revenue -Ind AS 115 ................................................. MAT Credit Entitlement ............................................................... Others ................................................................................................ Deferred Tax Liabilities in relation to: Property, Plant and Equipment ................................................ Others ................................................................................................ Net Deferred Tax Assets ........................................................... 77.79 29.07 3,917.39 268.21 39.85 108.82 707.54 17.59 5,166.26 5,037.54 4.60 5,042.14 124.12 (24.70) (19.62) (436.06) (119.14) 155.62 23.70 (605.81) (17.59) (1,043.60) (1,052.32) 14.67 (1,037.65) (5.95) Nil 1.53 Nil Nil Nil Nil Nil Nil 1.53 1.53 Nil 1.53 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 53.09 10.98 3,481.33 149.07 195.47 132.52 101.73 Nil 4,124.19 3,986.75 19.27 4,006.02 118.17 172 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 12. Deferred Tax (Contd.) 12 b. Deferred Tax Liabilities Deferred Tax Assets .............................................................................. Deferred Tax Liabilities ....................................................................... Total - Net Deferred Tax Liabilities............................................. As at 31st March, 2019 ` crore 2,025.06 3,081.87 1,056.81 As at 31st March, 2018 ` crore 2,402.03 2,918.59 516.56 As at 1st April, 2017 ` crore 89.59 1,840.73 1,751.14 2018-19 Opening Balance Recognised in Profit or Loss Recognised in Other Comprehensive 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 ............ Unabsorbed Depreciation ................................................................... Carry Forward Losses ............................................................................ On Asset Held For Sale [Refer Note(i) below] ............................... MAT Credit Entitlement ........................................................................ Government Grant ................................................................................. Deferred Revenue -Ind AS 115 .......................................................... Others ......................................................................................................... Deferred tax liabilities in relation to : Finance Leases ......................................................................................... Property, Plant and Equipments ....................................................... Investments at Fair Value ..................................................................... Distribution on Perpetual Bonds ...................................................... Borrowings................................................................................................ Undistributable Profits of Subsidiaries ........................................... Revaluation on Consolidation ........................................................... Others ......................................................................................................... Net Deferred Tax Liabilities ............................................................. 53.02 81.23 244.74 4.34 757.40 1241.62 17.73 Nil 1.95 2,402.03 144.43 2,521.19 0.24 24.90 10.40 4.34 213.09 Nil 2,918.59 516.56 5.45 (7.60) (102.57) (4.34) (413.78) 122.80 (15.54) 30.90 7.75 (376.93) 62.42 39.78 45.20 Nil (0.74) 21.76 (10.40) 5.24 163.26 540.19 Nil 0.16 Nil Nil Nil Nil Nil Nil (0.20) (0.04) Nil Nil 0.02 Nil Nil Nil Nil Nil 0.02 0.06 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 2017-18 Deferred Tax Assets in relation to : Allowance for Doubtful Debts, Deposits and Advances ......... Provision for Employee Benefits, Entry Tax and Others ........... Unabsorbed Depreciation .................................................................. Carry Forward Losses ........................................................................... On Asset Held For Sale [Refer Note(i) below] .............................. MAT Credit Entitlement ....................................................................... Government Grant ................................................................................ Others ........................................................................................................ Deferred Tax Liabilities in relation to: Finance Leases ........................................................................................ Property, Plant and Equipments ...................................................... Investments at Fair Value .................................................................... Distribution on Perpetual Bonds ..................................................... Borrowings............................................................................................... Undistributable Profits of Subsidiaries .......................................... Revaluation on Consolidation .......................................................... Net Deferred Tax Liabilities ............................................................ Opening Balance Recognised in Profit or Loss Recognised in Other Comprehensive Income Recognised directly in Equity 29.75 57.75 Nil Nil Nil 2.09 Nil Nil 89.59 144.48 1,405.58 26.03 24.66 5.04 5.47 229.47 1,840.73 1,751.14 23.27 23.76 244.74 4.34 387.40 1,239.53 17.73 1.79 1,942.56 (0.05) 1,115.61 (3.80) Nil 5.36 (1.13) (16.38) 1,099.61 (842.95) Nil (0.28) Nil Nil 370.00 Nil Nil 0.16 369.88 Nil Nil (21.99) Nil Nil Nil Nil (21.99) (391.87) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 0.24 Nil Nil Nil 0.24 0.24 ` crore Closing Balance 58.47 73.79 142.17 Nil 343.62 1,364.42 2.19 30.90 9.50 2,025.06 206.85 2,560.97 45.46 24.90 9.66 26.10 202.69 5.24 3,081.87 1,056.81 ` crore Closing Balance 53.02 81.23 244.74 4.34 757.40 1,241.62 17.73 1.95 2,402.03 144.43 2,521.19 0.24 24.90 10.40 4.34 213.09 2,918.59 516.56 Consolidated Financials I 173 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements The Tata Power Company Limited 12. Deferred Tax (Contd.) 12 b. Deferred Tax Liabilities (Contd.) Notes: i. During the year ended 31st March, 2019, the Group has disposed off certain investment/assets. Accordingly the deferred tax asset of ` 757.40 crore recognized in March, 2018 has been reversed up to ` 413.78 crore in the statement of profit and loss. ii. During the year ended 31st March 2018, the Parent Company has reassessed the recoverability of unrecognised MAT credit and accordingly recognised MAT credit amounting to ` 517.51 crore and also recognized regulatory liability on the said MAT credit which needs to be passed on to the consumers. During the current year, the Group has reassessed the recoverability of unrecognised MAT Credit and considering the uncertainty over the realisability, the Group has not recognised MAT Credit amounting to ` 276.87 crore (31st March, 2018 - ` 287.05 crore). iii. Considering the uncertainty over the realisibility, the Group has not recognized deferred tax asset to the extent of ` 309.73 crore (31st March, 2018 - ` 289.53 crore) on provision for diminution in value of investment classified as assets held for sale. iv. Unrecognised deferred tax assets on tax losses /unused tax credit for which no deferred tax assets is recognised amount to ` 3,512.67 crore and ` 2,826.31 crore as at 31st March, 2019 and 31st March, 2018 respectively. The expiry of unrecognised Deferred Tax Asset is as detailed below: As at 31st March, 2019 Unrecognised Deferred Tax Assets Within one year Business losses ................................................................ Unabsorbed depreciation ........................................... MAT credit ......................................................................... Provision in the value of investment classified as held for sale ...................... Total .................................................................................... for diminution 30.98 Nil Nil Nil 30.98 As at 31st March, 2018 Unrecognised Deferred Tax Assets Within one year Business losses ................................................................ Unabsorbed depreciation ........................................... MAT credit ......................................................................... Provision in the value of investment classified as held for sale ...................... Total .................................................................................... for diminution Nil Nil Nil Nil Nil Greater than one year, less than five years 490.03 Nil 8.01 Greater than five years 532.54 Nil 268.86 No expiry date Nil 1,872.52 Nil ` crore Closing balance 1,053.55 1,872.52 276.87 Nil 498.04 309.73 1,111.13 Nil 1,872.52 309.73 3,512.67 Greater than one year, less than five years 516.00 Nil 8.01 Greater than five years 404.58 Nil 279.04 No expiry date Nil 1,329.15 Nil ` crore Closing balance 920.58 1,329.15 287.05 Nil 524.01 289.53 973.15 Nil 1,329.15 289.53 2,826.31 v. The Group has not recognized any deferred tax liabilities for taxes amounting to ₹ 1,549.25 crore and ₹ 1,400.97 crore that would be payable on the Group’s share in unremitted earnings of its subsidiaries and its interest in joint ventures because the Group controls when the liability will be incurred and it is probable that the liability will not be incurred in the forseeable future. 12 c. Reconciliation of Deferred Tax Expense amount recognised in profit or loss and Other Comprehensive Income Recognised in profit or loss Recognised directly in equity For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore Recognised in Other Comprehensive Income For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore Deferred Tax Assets (Net) - (Refer Note 12 a.) Net (increase)/decrease in Deferred Tax Assets .................... Deferred Tax Liabilities (Net) - (Refer Note 12 b.) Net increase/(decrease) in Deferred Tax Liabilities ............. Less: Deferred Tax Liabilities (Net) - Discontinued Operations (Refer Note 33) 28.68 5.95 Nil Nil 540.19 (842.95) 0.06 (391.87) Net increase/(decrease) in Deferred Tax Liabilities Deferred Tax Expense (Net) ...................................................... 5.94 562.93 3.23 (840.23) Nil 0.06 Nil (391.87) 174 I Consolidated Financials For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore Nil Nil Nil Nil Nil 0.24 Nil 0.24 100th Annual Report 2018-19 13. Other Assets Notes to the Consolidated Financial Statements As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Non-current (i) Capital Advances Unsecured, considered good ......................................... Doubtful ......................................................................... Less: Allowance for Doubtful Advances ...................... (ii) (iii) Security Deposits Unsecured, considered good ........................................ Balances with Government Authorities Unsecured, considered good Advances ...................................................................... Amount Paid Under Protest .................................... VAT/Sales Tax Receivable ......................................... (iv) Unamortised Premium for Leasehold Land (v) Unsecured, considered good ......................................... Deferred Rent Expense Unsecured, considered good ......................................... (vi) Others Unsecured, considered good Prepaid Expenses ........................................................ Recoverable from Consumers ................................ Others ............................................................................. Doubtful ............................................................................... Less: Allowance for Doubtful Advances ...................... Total .......................................................................................................... Current (i) Balances with Government Authorities Unsecured, considered good Advances ....................................................................... VAT/Sales Tax Receivable ......................................... (ii) Unamortised Premium for Leasehold Land Unsecured, considered good ......................................... (iii) Other Loans and Advances Unsecured, considered good Prepaid Expenses ........................................................ Unamortised Option Premium .............................. Advances to Vendors ................................................. Recoverable from Consumers ................................ Deferred Rent Expense ............................................. Unbilled Revenue (contract assets) ..................... Power Banking Receivable ...................................... Other Advances........................................................... Others ............................................................................. Doubtful ......................................................................... Less: Allowance for Doubtful Advances ...................... Total .......................................................................................................... 59.34 0.16 59.50 0.16 59.34 49.50 0.12 49.62 0.12 49.50 228.64 228.66 166.61 70.91 63.16 300.68 317.90 26.50 3.29 404.79 16.93 0.93 425.94 0.93 425.01 1,358.07 174.23 4.48 178.71 9.51 79.14 Nil 323.33 1,100.54 0.89 11.15 170.94 7.46 0.18 1.82 1,695.45 1.82 1,693.63 1,881.85 165.35 68.67 62.70 296.72 309.47 11.75 4.90 675.98 0.33 0.96 682.17 0.96 681.21 1,577.31 90.13 6.60 96.73 9.69 87.10 0.09 358.34 634.65 0.24 Nil 302.64 17.04 5.80 1.08 1,406.98 1.08 1,405.90 1,512.32 121.04 0.21 121.25 0.21 121.04 228.77 143.58 217.41 82.72 443.71 439.47 9.51 11.44 771.09 33.30 2.22 818.05 2.22 815.83 2,058.33 31.19 34.90 66.09 20.94 76.56 Nil 283.14 710.04 0.14 Nil 116.74 16.55 2.81 1.57 1,207.55 1.57 1,205.98 1,293.01 Consolidated Financials I 175 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 14. Inventories Accounting Policy Inventories are stated at the lower of cost and net realisable value. Cost of inventory includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Costs of inventories are determined on weighted average basis. Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Unserviceable/damaged stores and spares are identified and written down based on technical evaluation. Inventories (lower of cost and net realisable value) (a) Raw Materials and Fuel Fuel - Stores .................................................................... Fuel-in-Transit ................................................................ Others ............................................................................... (b) Work-In-Progress .................................................................... Finished goods ......................................................................... (c) Stores and Spares (d) Stores and Spare Parts ................................................ Stores-in-Transit ............................................................ Loose Tools ................................................................................. Others Property under Development .............................................. Total ............................................................................................... (e) (f) Notes: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 805.77 214.30 156.89 2.93 82.41 323.27 Nil 1.29 780.24 216.67 133.05 6.36 103.35 281.89 Nil 1.02 575.00 260.64 158.76 29.71 110.13 382.96 4.44 1.22 119.56 1,706.42 100.50 1,623.08 76.70 1,599.56 1. The Group has recognised ` Nil (31st March, 2018 - ` 46.91 crore, 1st April, 2017 - ` 62.74 crore) as an expense for inventories carried at net realisable value. 2. Refer Note 21 for Inventories pledged as security for liabilities. 15. Current Investments As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore I Investment carried at Amortised Cost Statutory Investments Contingency Reserve Fund Investments (Unquoted) Government Securities fully paid up ........................................................................ Deferred Taxation Liability Fund Investments Government Securities fully paid up ........................................................................ (Unquoted) II Investments carried at Fair Value through Profit and Loss Equity Shares (Quoted) (a) Investment in Equity Shares fully Paid-up .............. (b) Investment in Debentures or Bonds (Quoted) ..... Other (Unquoted) (c) Investment in Mutual Funds (Unquoted) .............. Total ........................................................................................................... Notes: 1. Aggregate Market Value of Quoted Investments 2. Aggregate Carrying Value of Quoted Investments 3. Aggregate Carrying Value of Unquoted Investments * Denotes figure below ` 50,000 176 I Consolidated Financials Nil 10.00 42.00 42.00 Nil Nil Nil 124.98 124.98 166.98 Nil Nil 166.98 Nil 10.00 Nil Nil Nil 426.16 426.16 436.16 Nil Nil 436.16 15.85 73.49 89.34 32.35 0.31 32.66 975.78 1,008.44 1,097.78 32.66 32.66 1,065.12 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 16 a. Cash and Cash Equivalents Accounting Policy Cash and cash equivalent in the balance sheet comprise cash at banks, cash/cheques on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents include balances with banks which are unrestricted for withdrawal and usage. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash at bank, cash/cheques on hand and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` 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) ....................................................... Book Overdraft (Refer Note 25) ....................................................... Cash and Cash Equivalents as per Statement of Cash Flows 320.87 311.90 11.69 0.99 645.45 (590.89) Nil 54.56 905.58 126.10 28.41 1.07 1,061.16 (119.25) (0.08) 941.83 Particulars Non-current Borrowings (including Current Maturity of Non-current Borrowings) ............. Current Borrowings (excluding Bank Overdraft) .................................................................. Total ............................................................................ Particulars Non-current Borrowings (including Current Maturity of Non-current Borrowings) ............. (excluding Bank Current Borrowings Overdraft) .................................................................. Total ............................................................................ 16 b. Other Balances with Banks As at 31st March, 2018 ` crore Cash flows Reclassification Proceeds Repayment ` crore ` crore ` crore Reclassification as part of Discontinued Operations ` crore Foreign Exchange Others ` crore ` crore 29,761.96 10,867.07 (9,978.26) 3,766.57 (135.48) 338.00 10.80 34,630.66 34,846.52 18,708.03 48,469.99 45,713.59 (36,376.94) (46,355.20) (4,540.88) (774.31) Nil (135.48) 583.80 921.80 63.96 74.76 13,284.49 47,915.15 As at 31st March, 2017 ` crore Cash flows Reclassification Proceeds Repayment ` crore ` crore ` crore Reclassification as part of Discontinued Operations ` crore Foreign Exchange Others ` crore ` crore As at 31st March, 2018 ` crore 32,535.62 9,750.53 (11,224.74) (731.26) (585.42) 18.84 (1.61) 29,761.96 16,263.15 48,798.77 24,579.61 34,330.14 (22,668.41) (33,893.15) 731.26 Nil (12.22) (597.64) (251.40) (232.56) 66.04 64.43 18,708.03 48,469.99 (a) (b) In Deposit Accounts ............................................................... In Earmarked Accounts- Unpaid Dividend Account ............................................. Total .......................................................................................................... As at 31st March, 2019 ` crore 124.12 As at 31st March, 2018 ` crore 111.05 As at 1st April, 2017 ` crore 106.46 17.88 142.00 13.57 124.62 12.62 119.08 Note: Balances with banks held as margin money deposits against guarantees. Consolidated Financials I 177 459.91 349.29 23.60 2.42 835.22 (16.64) Nil 818.58 As at 31st March, 2019 ` crore E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 17 a. Assets Classified as Held For Sale Notes to the Consolidated Financial Statements The Tata Power Company Limited Accounting Policy Non-current assets or disposal group 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 or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset or disposal group 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. As at each balance sheet date, the management reviews the appropriateness of such classification. Non-current assets or disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The group treats sale/ distribution of the asset or disposal group to be highly probable when: - - - the appropriate level of management is committed to a plan to sell the asset (or disposal group), an active programme to locate a buyer and complete the plan has been initiated (if applicable), the asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value, the sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. - - Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortised. A disposal Group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: - - Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss. Additional disclosures are provided hereunder. All other notes to the financial statements mainly include amounts for continuing operations, unless otherwise mentioned. represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations carried at Fair Value Land [Refer Note (i)] ................................................................................. Building [Refer Note (ii)] ......................................................................... Property, Plant and Equipment [Refer Note (iii)] ........................... Investments through Other Comprehensive Income [Refer Note (iv)]......................................... Investments in Associates and Joint Ventures [Refer Note (v)] Investments in Subsidiaries [Refer Note (vi)] .................................. Loan Joint Venture interest accrued) [Refer Note (v)] .......................................................................................... Other Assets [Refer Note (vi)] ............................................................... Assets of Discontinued Operations [Refer Note 17 (c)]............... (including to As at 31st March, 2019 ` crore 310.28 9.75 155.59 As at 31st March, 2018 ` crore 97.21 Nil 0.22 As at 1st April, 2017 ` crore 15.83 Nil 24.68 38.65 2,918.73 Nil 18.59 26.23 2,064.30 5,542.12 69.70 2,520.16 Nil Nil 26.22 2,065.19 4,778.70 195.21 1,683.75 Nil Nil Nil Nil 1,919.47 17 b. Liabilities directly associated with Assets Classified as Held For Sale Liabilities related to Other Assets [Refer Note (vi)] ................... Liabilities of Discontinued Operations [Refer Note 17 (c)] .... Total .......................................................................................................... As at 31st March, 2019 ` crore 26.23 966.27 992.50 As at 31st March, 2018 ` crore 26.22 877.56 903.78 As at 1st April, 2017 ` crore Nil Nil Nil 178 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 17 b. Liabilities directly associated with Assets Classified as Held For Sale (Contd.) Notes: (i) The Group had decided to sell/transfer following land and consequently classified as assets held for sale at lower of carrying amount and fair value less cost to sell: (a) (b) (c) (d) (e) (f ) (g) (h) Land at Belgaum ` Nil (31st March, 2018 - ` 2.90 crore, 1st April, 2017 - ` 2.90 crore) has been disposed off in the current year; Land at Tiruldih ` 9.72 crore (net of impairment loss of ` 34 crore) (31st March, 2018 - ` 9.72 crore, 1st April, 2017 - ` 9.72 crore); Land at Vadaval ` 3.21 crore (31st March, 2018 - ` 3.21 crore, 1st April, 2017 - ` 3.21 crore); Land at Naraj Marthapur ` 81.38 crore (net of impairment loss of ` 37 crore) (31st March, 2018 - ` 81.38 crore, 1st April, 2017 - ` Nil); Land at Hadapsar ₹ 0.08 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Land at Dehrand ₹ 215.56 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Land at Oil Tankage Unit, Trombay (CTTL) ₹ 0.04 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Land at Visapur ₹ 0.29 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil). (ii) The Group had decided to sell/transfer following buildings and consequently classified as assets held for sale at lower of carrying amount and fair value less cost to sell: (a) (b) (c) (d) (e) (a) (iii) Building at Erangal ₹ 0.23 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Building at Panvel ₹ 0.48 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Building at Peninsula ₹ 8.02 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Building at Metropolitan ₹ 0.89 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil); Building at Oil Tankage Unit, Trombay ₹ 0.13 crore (31st March, 2018 - ₹ Nil, 1st April, 2017 - ₹ Nil). The Group has a Oil Tankage unit at Trombay. During the year, the Group has reclassified the said asset as 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 ` 4.55 crore as at 31st March, 2019. (b) During the year, the Group signed a binding term sheet for sale of its 32 MW wind project in Maharashtra. Subsequent to the year end, the Group signed a Business Transfer Agreement on 18th April, 2019 with the buyer. The sale transaction is likely to be concluded in next three months. No impairment loss has been recognised on reclassification as the Group expects that the fair value less costs to sell is higher than the carrying amount of ₹ 131.00 crore as at 31st March, 2019. (c) The Group had recorded impairment provision of ₹ 37.57 crore pertaining to Rithala plant till 31st March, 2018. During the year, the Group has performed impairment reassessment and has recognised additional impairment provision of ₹ 106.41 crore as an exceptional item in the statement of profit and loss. Impairment provision consists of ₹ 18.07 crore towards impairment of Property, Plant and Equipment and ₹ 88.32 crore being difference between carrying value and fair value of the plant. The Group has classified the plant under assets held for sale at its fair value of ₹ 20.04 crore. (iv) During the year ended 31st March, 2017, the Group had decided to divest its investments carried at fair value through other comprehensive income in Tata Teleservices (Maharashtra) Ltd. and Tata Teleservices Ltd. Part of the said investments has been disposed off in the current year. Balance investments have been classified as held for sale at fair value of ` 38.65 crore as at 31st March, 2019 (31st March, 2018 - ` 69.70 crore, 1st April, 2017 - ` 195.21 crore). (v) (a) The Group had signed definitive agreements for sale of PT Arutmin Indonesia and its associated infrastructure and trading companies during the year ended 31st March, 2017 and the sale consideration of USD 400.92 million was 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 ` 1,768.97 crore as at 31st March, 2019 (31st March, 2018 - ` 1,684.18 crore, 1st April, 2017 - ` 1,673.30 crore). Consolidated Financials I 179 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 17 b. Liabilities directly associated with Assets Classified as Held For Sale (Contd.) Notes to the Consolidated Financial Statements (b) (c) The Group holds investment in Nelito Systems Ltd. (Nelito), an Associate company. During the year ended 31st March, 2017, the Group had sold part of the investment at ` 185/- per share and decided to sell its entire share holding. Accordingly, balance investment of ` 12.93 crore at 31st March, 2019 (31st March, 2018 - ` 10.45 crore, 1st April, 2017 - ` 10.45 crore) has been classified and disclosed as Assets classified as held for sale. During the year, the Group had received offer to sell at ` 240/- per share and therefore the provision for investments amounting to ` 2.48 crore has been reversed. During the previous year, the Group decided to divest its investments in Tata Projects Ltd. (` 439.44 crore), Tata Communications Ltd. (` 107.31 crore) and Panatone Finvest Ltd. (` 278.78 crore), associate companies. Accordingly, the said investments were classified as held for sale. During the year, the investments in Panatone Finvest Ltd. and Tata Communications Ltd. have been disposed off at the sale value of ` 1,542.62 crore and ` 614.18 crore respectively, resulting in gain of ` 1,354.25 crore and ` 542.99 crore respectively which has been disclosed as an exceptional income in the financial results. (d) During the year, the Group decided to divest its investment in and loan given to its Joint Venture Company, Itezhi Tezhi Power Corporation of ` 577.65 crore and ` 18.59 crore respectively and investment in its Joint Venture Company, Cennergi Pty Ltd. of ` 119.74 crore. Accordingly, the said investments and loan have been classified as held for sale. No impairment loss has been recognised on reclassification as the Company expects that the fair value less costs to sell is higher than the carrying amount as at 31st March, 2019. (vi) During the previous year, the Group has decided to divest its investments in equity and preference shares of its subsidiary, Tata Ceramics Ltd. Accordingly, the said investments have been classified as held for sale at ` Nil (Net of impairment of ` 14.21 crore). 17 c. Assets classified as Held for Sale - Discontinued Operations During the previous year, the Group approved sale of its Strategic Engineering Division (SED) to Tata Advanced Systems Ltd. (TASL) (a wholly owned subsidiary of Tata Sons Pvt. Ltd.) as a going concern on slump sale basis, subject to regulatory approvals at an enterprise value of ` 2,230 crore (out of which ` 1,040 crore payable at the time of closing and ` 1,190 crore payable on achieving certain milestones). Accordingly, defence business segment is presented as discontinued operations in the segment note. The date of completion of the transaction is subject to approval by National Company Law Tribunal (NCLT) and other requisite approvals. Results of Strategic Engineering Division for the year are presented below: Particulars For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore Income Revenue from Operations .............................................................................................................. Expenditure Cost of Components Consumed .................................................................................................. Employee Benefits Expense........................................................................................................... Finance Costs ...................................................................................................................................... Depreciation & Amortisation ........................................................................................................ Other Expenses .................................................................................................................................. Total Expenses .................................................................................................................................. Profit/(Loss) before tax from Discontinued Operations............................................... Tax Current Tax/(Credit) .......................................................................................................................... Deferred Tax ........................................................................................................................................ Total Tax ............................................................................................................................................... Profit/(Loss) for the year from Discontinued Operations ............................................ Other Comprehensive Income/(Expense) ................................................................................ Tax on Other Comprehensive Income ....................................................................................... Total Comprehensive Income/(Expense) ............................................................................. 143.59 138.10 110.85 36.33 Nil 50.13 335.41 (191.82) (71.92) 5.94 (65.98) (125.84) (1.14) 0.40 (126.58) 286.74 213.37 49.40 8.85 31.17 69.82 372.61 (85.87) (17.36) 3.23 (14.13) (71.74) 0.85 Nil (70.89) 180 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 17 c. Assets classified as Held for Sale - Discontinued Operations (Contd.) Major classes of Assets and Liabilities of Strategic Engineering Division classified as held for sale are as follows: Assets Property, Plant and Equipment .................................................................................................... Capital Work-in-Progress ................................................................................................................ Other Intangible Assets................................................................................................................... Intangible Assets Under Development ..................................................................................... Non-current Financial Assets ........................................................................................................ Other Non-current Assets .............................................................................................................. Current Assets Inventories ........................................................................................................................................... Current Financial Assets .................................................................................................................. Other Current Assets ........................................................................................................................ Assets Classified as Held For Sale............................................................................................ Liabilities Non-current Liabilities Financial Liabilities ............................................................................................................................ Provisions ............................................................................................................................................. Current Liabilities Financial Liabilities ............................................................................................................................ Provisions ............................................................................................................................................. Other Current Liabilities .................................................................................................................. Liabilities directly associated with Assets Classified as Held For Sale .................. Net Assets directly associated with Discontinued Operations ................................. Net Cash Flows attributable to Strategic Engineering Division are as follows Net Cash Flow from/(used) in Operating Activities............................................................... Net Cash Flow from/(used) in Investing Activities ................................................................ 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) ............................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 302.06 418.75 123.42 347.10 3.66 74.66 104.15 261.96 428.54 2,064.30 679.31 30.22 190.00 17.91 48.83 966.27 1,098.03 302.99 361.42 75.08 351.84 4.75 78.04 102.30 309.75 479.02 2,065.19 547.38 19.05 202.51 37.93 70.69 877.56 1,187.63 For the year ended 31st March, 2019 ` crore 18.67 (87.35) 72.95 4.27 1.84 6.11 For the year ended 31st March, 2018 ` crore (16.31) (233.13) 237.27 (12.17) 14.01 1.84 During the year, the SED has incurred Research and Development expenditure including capital expenditure amounting to ` 43.62 crore (31st March, 2018 - ` 118.75 crore). Estimated amount of Contracts remaining to be executed on capital account and not provided for is ` 55.57 crore (31st March, 2018 - ` 103.93 crore). Contingent Liability of excise duty amounts to ` 14.28 crore (31st March, 2018 - ` 14.28 crore). 18. Regulatory Deferral Account Accounting Policy The Group determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect of its regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles laid down under the relevant Tariff Regulations/Tariff Orders notified by the Electricity Regulator and the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate adjustments in respect of such revenue gaps are made in the regulatory deferral account of the respective year for the amounts which are reasonably determinable and no significant uncertainty exists in such determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory deferral accounts debit/credit balances Consolidated Financials I 181 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 18. Regulatory Deferral Account (Contd.) Notes to the Consolidated Financial Statements (Regulatory Assets/Regulatory Liabilities) as the case may be in the financial statements, which would be recovered/refunded through future billing based on future tariff determination by the regulator in accordance with the electricity regulations. The Group presents separate line items in the balance sheet for: i. ii. the total of all regulatory deferral account debit balances and related deferred tax balances; and the total of all regulatory deferral account credit balances and related deferred tax balances. A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory deferral account. Regulatory asset/liabilities on deferred tax expense/income is presented separately in the tax expense line item. Regulatory Deferral Account - Liability - Current Regulatory Liabilities............................................................................ Regulatory Deferral Account - Assets - Non-current (Refer Note 35) Regulatory Assets .................................................................................. Net Regulatory Assets / (Liabilities) ........................................... Rate Regulated Activities As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Nil 485.00 662.35 5,758.13 5,758.13 6,304.56 5,819.56 7,117.70 6,455.35 (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 Regulations issued by respective State Regulators are applicable to the Group’s distribution businesses. 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 of return on approved equity base, from its consumers. The Group determines the Revenue, Regulatory Assets and Liabilities as per the terms and conditions specified in respective MYT Regulations. (ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st March, 2019, is as follows: Opening Regulatory Assets (Net of Liabilities) ............ Regulatory Deferral Balances (net) during the year (i) Power Purchase Cost .................................................. (ii) Other expenses as per the terms of Tariff Regulations including Return on Equity ............. (iii) Amount collected (including pertaining to earlier years) .................................................................. Net movement in Regulatory Deferral Balances (i + ii + iii) ................................................................................... Regulatory Assets/(Liabilities) on carrying cost recognised as revenue .......................................................... Recovery from company’s generation business ......... Net movement in Regulatory Deferral Balances in respect of earlier years (Refer Note below) ................... Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income) .................................................................. Closing Regulatory Asset (Net of Liabilities) ................. (A) (B) (C) (D) (E) (F) (A + B + C + D + E + F) As at 31st March, 2019 ` crore 5,819.56 As at 31st March, 2018 ` crore 6,455.35 8,192.16 7,518.31 2,770.78 2,709.05 (11,303.13) (10,637.21) (340.19) (409.85) 29.15 (193.76) 274.26 169.11 5,758.13 (49.00) Nil Nil (176.94) 5,819.56 During the year, pursuant to receipt of true-up tariff order from the Regulatory Commission for the years 2014-15, 2015-16 and 2016-17, the Group has recognized net income of ₹ 91.95 crore comprising of a credit of ₹ 274.26 crore in regulatory income and a charge of ₹ 182.31 crore to revenue from operations. 182 I Consolidated Financials 100th Annual Report 2018-19 19 a. Equity - Share Capital Notes to the Consolidated Financial Statements Authorised Equity Shares of ` 1/- each .................................................................................................. Cumulative Redeemable Preference Shares of ` 100/- each .................................. 350,00,00,000 2,29,00,000 350.00 229.00 579.00 350,00,00,000 2,29,00,000 350.00 229.00 579.00 300,00,00,000 2,29,00,000 300.00 229.00 529.00 As at 31st March, 2019 ` crore Number As at 31st March, 2018 ` crore Number As at 1st April, 2017 ` crore Number Issued Equity Shares [including 28,32,060 shares (31st March, 2018 - 28,32,060 shares, 1st April, 2017 - 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 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, 2018 - 28,32,060 shares, 1st April, 2017 - 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 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, 2018 - ` 0.01 crore, 1st April, 2017 - ` 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] ........................................... 276,17,00,970 276.17 276,17,00,970 276.17 276,17,00,970 276.17 270,47,73,510 270.48 270,47,73,510 270.48 270,47,73,510 270.48 Add: Equity Shares forfeited - Amount paid ............................................................... Total Subscribed and Paid-up Share Capital ................................................................. 16,52,300 0.04 270.44 0.06 270.50 16,52,300 0.04 270.44 0.06 270.50 16,52,300 0.04 270.44 0.06 270.50 (i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period Equity Shares At the beginning of the year .................................................................. Issued during the year .............................................................................. Outstanding at the end of the year ..................................................... 270,64,25,810 Nil 270,64,25,810 270.50 Nil 270.50 270,64,25,810 Nil 270,64,25,810 270.50 Nil 270.50 270,62,81,698 1,44,112 270,64,25,810 270.48 0.02 270.50 As at 31st March, 2019 ` crore Number As at 31st March, 2018 ` crore Number As at 1st April, 2017 ` crore Number (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 final 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 Group, 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 Equity Shares of ` 1/- each fully paid Tata Sons Pvt. Ltd........................................................................................................ Life Insurance Corporation of India ..................................................................... Matthews Pacific Tiger Fund................................................................................... 83,97,99,682 20,97,31,735 18,03,16,487 31.05 7.75 6.67 83,97,99,682 31,79,60,364 17,79,49,592 31.05 11.76 6.58 83,97,99,682 33,22,45,379 16,46,20,436 31.05 12.28 6.09 As at 31st March, 2019 % Holding Number As at 31st March, 2018 % Holding Number As at 1st April, 2017 % Holding Number 19 b. Unsecured Perpetual Securities 11.40% Unsecured Perpetual Securities ........................................ Add: Movement during the year ....................................................... Total ......................................................................................................... As at 31st March, 2019 ` crore 1,500.00 Nil 1,500.00 As at 31st March, 2018 ` crore 1,500.00 Nil 1,500.00 As at 1st April, 2017 ` crore 1,500.00 Nil 1,500.00 In an earlier year the Company had 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 (2020). 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. Consolidated Financials I 183 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 20. Other Equity Notes to the Consolidated Financial Statements The Tata Power Company Limited General Reserve Opening Balance .................................................................................................................... Closing Balance ....................................................................................................................... Securities Premium Opening Balance .................................................................................................................... Closing Balance ....................................................................................................................... Debenture Redemption Reserve Opening Balance .................................................................................................................... Add/(Less): Amount transferred from/(to) Retained Earnings (Net) ..................... Closing Balance ....................................................................................................................... Capital Redemption Reserve Opening Balance .................................................................................................................... Add/(Less): Amount transferred from Surplus in Statement of Profit and Loss Closing Balance ....................................................................................................................... Capital Reserve Opening Balance .................................................................................................................... Add/(Less): Movement during the year ........................................................................... Closing Balance ....................................................................................................................... Special Reserve fund Opening Balance .................................................................................................................... Add/(Less) Amount transferred from Retained Earnings .......................................... Closing Balance ....................................................................................................................... Statutory Reserves Opening Balance ............................................................................................................................... Closing Balance .................................................................................................................................. Retained Earnings (Refer Note 1 below) Opening balance .................................................................................................................... Add: Profit for the year ......................................................................................................... Transfer from Equity Instrument through Other Comprehensive Income (Refer Note 2 below) .................................................................................. Transfer from Debenture Redemption Reserve (Net) .................................... Less: Distribution on Unsecured Perpetual Securities (Net of tax) ...................... Other Comprehensive Income/(Expense) arising from Remeasurement of Defined Benefit Obligation (Net of Tax) ....................... Transfer from Equity Instrument through Other Comprehensive Income (Refer Note 2 below) .................................................................................. Other Appropriations: Payment of Dividend (Refer Note 3 below) ....................................................... Tax on Dividend ........................................................................................................... Transfer to Special Reserve Fund (under Sec 45-IA of RBI Act, 1934) ......................................................................... Transfer to Capital Redemption Reserve ............................................................ As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 4,086.53 4,086.53 5,647.80 5,647.80 1,073.16 (344.26) 728.90 15.76 500.00 515.76 232.09 Nil 232.09 119.05 3.54 122.59 660.08 660.08 4,086.53 4,086.53 5,647.80 5,647.80 1,074.85 (1.69) 1,073.16 15.76 Nil 15.76 221.30 10.79 232.09 102.85 16.20 119.05 660.08 660.08 2,473.39 2,190.94 405.30 2,408.30 Nil 344.26 110.88 17.70 771.15 351.99 71.66 3.54 500.00 708.28 226.37 1.69 112.06 16.37 Nil 351.99 71.65 16.20 Nil 2,068.09 2,473.39 Closing Balance .................................................................................................................................. 3,181.67 184 I Consolidated Financials 100th Annual Report 2018-19 20. Other Equity (Contd.) Notes to the Consolidated Financial Statements Equity Instrument through Other Comprehensive Income Opening Balance .................................................................................................................... Add/(Less): Transfer to Retained Earnings (Refer Note 2 below) ............................ Add/(Less): Change in Fair Value of Equity Instruments through Other Comprehensive Income ................................................................................. Closing Balance ....................................................................................................................... Foreign Currency Translation Reserve Opening Balance .................................................................................................................... Add/(Less): 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 ....................................................................................................................................................... Notes: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore (44.77) 771.15 (27.86) 698.52 367.55 209.17 576.72 (1.26) 1.26 Nil 100.73 (226.37) 80.87 (44.77) 337.42 30.13 367.55 (0.63) (0.63) (1.26) 16,450.66 14,629.38 1. 2. Includes gain on fair valuation of land which is not available for distribution ` 362.34 crore (31st March, 2018 - ` 362.34 crore, 1st April, 2017 - ` 362.34 crore). During the year ended 31st March, 2019, the Group has sold certain long term investments. The resultant (loss)/ profit of ` (771.15) crore (31st March, 2018 - ` 226.37 crore) has been transferred from Equity Instrument through Other Comprehensive Income to Retained Earnings. 3. On 30th July, 2018, a dividend of ` 1.30 per share was paid to the holders of fully paid equity shares. 4. In respect of the year ended 31st March, 2019, the directors have proposed a dividend of ` 1.30 per share in previous year 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 (Previous Year- ` 351.99 crore) excluding Dividend Distribution Tax. 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 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 Pvt. Ltd. on preferential allotment of convertible warrants in the Group, 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. Statutory Reserves Statutory Reserve consists of Special Appropriation towards Project Cost, Development Reserve and Investment Allowance Reserve. Consolidated Financials I 185 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 20. Other Equity (Contd.) Notes to the Consolidated Financial Statements Special appropriation to project cost - Due to high capital investment required for the expansion in the electricity industry, the Maharashtra State Government permits part of the capital cost of approved projects to be collected through the electricity tariff and held as a special appropriation. Development Reserve / Investment Allowance Reserve - Until 1978, the Companies made appropriations to a Development Reserve and an Investment Allowance Reserve as required by the Income Tax Act, 1956. New appropriations to these reserves are no longer required due to changes in Indian law. An amount equal to 0.5% on the accumulation in the Investment Allowance Reserve was included in the reasonable return calculation. Retained Earnings Retained Earnings are the profits of the Group earned till date net of appropriations. Equity Instruments 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. 21. Non-current Borrowings (i) Unsecured - At Amortised Cost Bonds/Debentures Bonds - 8.50% Euro Notes 2017 ...................................... Redeemable Non-Convertible Debentures ................ Term Loans Term Loans from Banks ................................................... Loans from Related Parties ................................................... Deferred Payment Liabilities-Sales Tax Deferral ........ Others Non - Convertible Cumulative Redeemable Preference Shares ................................................................. Buyers Credit .......................................................................... (ii) Secured - At Amortised Cost Debentures As at 31st March, 2019 Current Maturities* ` crore Non- current ` crore As at 31st March, 2018 Current Maturities* ` crore Non- current ` crore As at 1st April, 2017 Current Non- Maturities* current ` crore ` crore Nil 7,947.81 3,098.35 Nil 8.50 Nil 500.00 346.67 Nil 22.12 Nil 6,670.88 2,815.06 Nil 17.00 Nil 1,875.00 2,598.89 Nil 14.48 Nil 4,676.67 5,615.13 770.42 28.45 386.22 4,499.77 67.50 Nil 15.35 Nil Nil 11,054.66 Nil 224.00 1,092.79 245.00 210.66 9,958.60 Nil Nil 4,488.37 245.00 Nil 11,335.67 Nil Nil 4,968.84 Redeemable Non-Convertible Debentures ................ 1,436.67 41.00 1,475.99 1,041.00 2,518.69 41.00 Term Loans From Banks ............................................................................. From Others ........................................................................... 16,658.57 1,987.13 2,167.11 45.93 10,250.39 533.81 Others Buyer’s Credit ......................................................................... Finance Lease Obligations ................................................ Total ........................................................................................................................ Nil 2.20 20,084.57 31,139.23 143.77 0.83 2,398.46 3,491.43 134.52 3.00 12,397.71 22,356.31 1,825.76 50.52 Nil Nil 2,917.28 7,405.65 9,157.85 632.98 1,497.77 Nil 13,807.29 25,142.96 2,303.64 79.18 Nil Nil 2,423.82 7,392.66 * Amount disclosed under Other Current Financial Liabilities (Refer Note 22) Security Non-current Borrowings Redeemable Non-convertible Debentures issued by the Group are secured by charge on movable and immovable assets of the respective entities. Term Loans and Buyer’s Credit availed by various entities of the Group from various Banks and Financial Institutions are secured by way of charge on all present and future moveable and immovable assets, stores and spares, raw materials, work-in-progress, finished goods, book debts, project receivables, intangibles, uncalled capital receivables, rights under project documents of the respective entities, project cash flows, regulatory deferral accounts, accounts including Debt Service Reserve Accounts and bank accounts, bank guarantees and pledge of shares of subsidiaries held by their respective holding companies. 186 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 21. Non-current Borrowings (Contd.) Terms of Repayment Particulars Unsecured - At Amortised Cost Debentures Term Loans Redeemable Non-Convertible Debentures ............. Secured - At Amortised Cost From Banks .......................................................................... Deferred Payment Liabilities - Sales Tax ........................... Others Buyers Credit ....................................................................... Debentures Term Loans Others Redeemable Non-Convertible Debentures ............ From Banks .......................................................................... From Others......................................................................... Buyers Credit ....................................................................... Finance Lease Obligations ............................................. Less: Impact of recognition of borrowing at amortised cost using effective interest method under Ind AS ................ Total .................................................................................................... (i) (ii) Note: Amount Outstanding as at 31st March, 2019 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-29 Financial Year ` crore FY 29-30 and onwards 8,475.00 500.00 370.00 1,570.00 2,535.00 370.00 1,630.00 1,500.00 3,449.29 30.62 346.67 22.12 2,270.96 5.67 439.21 2.83 224.00 224.00 Nil Nil 47.55 Nil Nil 47.55 Nil Nil 297.35 Nil Nil Nil Nil Nil 1,478.28 41.00 41.00 202.67 512.67 300.41 182.00 198.53 18,849.38 2,036.09 2,167.11 45.93 1,802.99 36.88 3,890.47 27.82 1,383.71 68.71 1,529.30 79.04 5,131.28 1,058.26 143.77 3.03 34,689.46 143.77 0.83 3,491.43 Nil 0.91 4,528.41 Nil 1.00 6,134.00 Nil 0.29 4,547.93 Nil Nil 2,326.30 Nil Nil 8,298.89 2,944.52 719.45 Nil Nil 5,362.50 58.80 34,630.66 Range of interest rates for: 1. Debentures - 8% to 10.75% 2. a) Term loan of foreign Companies from banks - 2.81% to 4.33% b) Term loan of Indian Companies - 5.99% to 10.25% 3. Term loan from others - 8.5% to 9.45% 22. Other Financial Liabilities Non-current (At Amortised Cost) Security Deposits from Customers .................................................................................................................... (a) Financial Guarantee Obligation towards Lenders of Jointly Controlled Entity [Refer Note 6b(ii)] (b) Payables for Capital Supplies and Services ..................................................................................................... (c) (d) Other Liabilities ......................................................................................................................................................... Total.................................................................................................................................................................................................................. Current At Amortised Cost, unless otherwise stated (a) (b) (c) (d) Current Maturities of Long-term Debt (Refer Note 21) ............................................................................... Interest accrued but not due on Borrowings-Others .................................................................................. Interest accrued but not due on Borrowings-Joint Ventures ................................................................... 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 for Capital Supplies and Services..................................................................................................... Advance Received for Sale of Investments ..................................................................................................... Contingent Consideration Payable (Fair value through profit and loss) ....................................... Derivative Contracts (Net) ........................................................................................................................................ Security Deposits from Electricity Consumers ............................................................................................. Security Deposits from Customers ...................................................................................................................... Tender Deposits from Vendors .............................................................................................................................. Interim Dividend Payble to Non-Controlling ................................................................................................ Financial Guarantee Obligation towards Lenders of Jointly Controlled Entity [Refer Note 6b(ii)] ..... Other Financial Liabilities .......................................................................................................................................... Total.................................................................................................................................................................................................................. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 662.09 9.23 15.92 0.07 687.31 3,491.43 492.16 133.43 22.04 0.04 0.09 439.91 1,099.62 42.57 113.35 278.17 5.67 3.61 22.65 103.74 232.31 6,480.79 615.29 Nil 7.79 24.23 647.31 7,405.65 518.23 289.52 17.73 0.03 0.09 417.89 271.19 55.71 457.67 237.13 34.19 1.95 Nil 97.77 138.23 9,942.98 537.53 Nil 5.06 8.35 550.94 7,392.66 563.11 329.04 16.41 0.03 0.09 771.03 Nil 177.56 944.51 211.67 43.58 1.88 Nil Nil 135.06 10,586.63 ** Includes amounts outstanding aggregating ` 1.25 crore (31st March, 2018 - ` 0.88 crore, 1st April, 2017 - ` 0.87 crore) for more than seven years pending legal cases. Consolidated Financials I 187 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 23. Tax Liabilities Notes to the Consolidated Financial Statements Non Current Tax Liabilities Income-tax Payable (Net) .................................................................. Total .......................................................................................................... Current Tax Liabilities Income-tax Payable (Net) .................................................................. Total .......................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 3.74 3.74 150.22 150.22 3.74 3.74 160.38 160.38 3.74 3.74 122.04 122.04 24. Provisions Accounting Policy 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). Present obligations arising under onerous contracts are recognised and measured as provisions with charge to statement of profit and loss. 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. 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. Defined benefits plans The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income (OCI) in the period in which they occur. Remeasurements are not reclassified to statement of profit and loss in subsequent periods. Past service costs are recognised in statement of profit and loss on the earlier of: - the date of the plan amendment or curtailment, and - the date that the Group recognises related restructuring costs Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the following changes in the net defined benefit obligation as an expense in the consolidated statement of profit and loss: - service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and - net interest expense or income. 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. The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. 188 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 24. Provisions (Contd.) Current and other non-current 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 current 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 non-current 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 up to the reporting date. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Non-current Provision for Employee Benefits Compensated Absences ....................................................... Gratuity (Net) [Refer Note 24 (2.3)].................................... Post-Employment Medical Benefits [Refer Note 24 (2.3)] .......................................................................... Other Defined Benefit Plans [Refer Note 24 (2.3)] ....... Other Employee Benefits ...................................................... Other Provisions Provision for Warranties ........................................................ Provision for Estimated Losses .......................................... Total .......................................................................................................... Current Provision for Employee Benefits Compensated Absences ....................................................... Gratuity (Net) [Refer Note 24 (2.3)].................................... Post-Employment Medical Benefits [Refer Note 24 (2.3)] .......................................................................... Other Defined Benefit Plans [Refer Note 24 (2.3)] ....... Other Employee Benefits ...................................................... Other Provisions Provision for Warranties ........................................................ Provision for Losses/Onerous Contracts ......................... Provision for Losses of Joint Ventures .............................. Provision for Rectification Work ......................................... Total .......................................................................................................... 144.95 39.64 47.10 54.50 26.51 312.70 20.90 Nil 20.90 333.60 29.33 1.66 2.56 8.40 5.13 47.08 18.33 14.74 83.45 13.40 129.92 177.00 132.42 33.41 32.33 61.73 26.98 286.87 13.13 Nil 13.13 300.00 23.66 2.75 1.37 9.07 6.33 43.18 18.16 23.28 84.50 24.32 150.26 193.44 133.25 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 32.03 159.62 207.69 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 189 Notes to the Consolidated Financial Statements The Tata Power Company Limited 24. Provisions (Contd.) Movement of Other Provisions Balance as at 1st April, 2017 ...................................... Additional provisions recognised ................................. Reductions arising from payments .............................. Reductions arising from remeasurements or settlement without cost................................................... Exchange Differences ....................................................... Reclassified as Liabilities directly associated with Assets Held for Sale ........................................................... Balance as at 31st March, 2018 ................................. Balance as at 31st March, 2018 ................................ Additional provisions recognised ................................. Reductions arising from payments .............................. Reductions arising from remeasurements or settlement without cost................................................... Exchange Differences ....................................................... Balance as at 31st March, 2019 ................................ Notes: Provision for Warranties 62.52 42.68 (16.60) (29.03) Nil (28.28) 31.29 31.29 15.14 (7.20) Nil Nil 39.23 Provision for Losses of Joint Ventures 82.64 1.86 Nil Provision for Losses/ Onerous Contracts 0.88 21.49 Provision for Rectification Work 32.03 18.88 (26.59) Nil Nil Nil 84.50 84.50 Nil Nil Nil (1.05) 83.45 Nil 0.91 Nil 23.28 23.28 9.57 (18.00) (0.11) Nil 14.74 Nil Nil Nil 24.32 24.32 Nil (10.92) Nil Nil 13.40 ` crore Total 178.07 84.91 (43.19) (29.03) 0.91 (28.28) 163.39 163.39 24.71 (36.12) (0.11) (1.05) 150.82 1. 2. 3. 4. 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 related to Asset held for Sale is transferred to Liabilities pertaining to Asset held for Sale. The provision for 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 on onerous contracts 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 subsequent year. These amounts have not been discounted for the purposes of measuring the provision for rectification work, because the effect is not material. Employee benefit plan 1. Defined Contribution plan The Group makes Provident Fund and Superannuation Fund contributions to defined contribution plans for eligible employees. Under the schemes, the Group is required to contribute a specified percentage of the payroll costs. The provident fund contributions as specified under the law are paid to the Government approved provident fund trust or statutory provident fund authorities. The Group has no obligation, other than the contribution payable to the respective fund. The Group recognizes such contribution payable to the respective fund scheme as an expense, when an employee renders the related service. The Group has recognised ` 56.10 crore (31st March, 2018 - ` 65.22 crore) for provident fund contributions and ` 10.63 crore (31st March, 2018 - ` 10.20 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: Funded: Provident Fund The Parent Company makes Provident Fund contributions to defined benefit plans for eligible employees. Under the scheme, the Parent Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions 190 I Consolidated Financials 100th Annual Report 2018-19 24. Provisions (Contd.) Notes to the Consolidated Financial Statements as specified under the law are paid to the provident fund set up as a trust by the Parent Company. The Parent 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 Group expects shortfall of ` 8.27 crore which has been provided as an expenditure during the year. The significant assumptions used for the purpose of the actuarial valuations were as follows: Particulars Interest rate ................................................................................................................................................ Discount rate .............................................................................................................................................. Contribution during the year (` crore) ............................................................................................. Short fall provided ................................................................................................................................... Unfunded: 31st March, 2019 8.65% p.a. 7.40% p.a. 19.15 8.27 31st March, 2018 8.55% p.a. 7.70% p.a. 19.04 Nil 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. 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 lumpsum 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. 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 lumpsum amount alongwith a sum determined based on the last drawn basic salary per month and the length of service. Retirement Gift The Group has a defined benefit plan granting a pre-determined sum as retirement gift on superannuation of an employee. Funded/Unfunded: 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 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. 2.2 The principal assumptions used for the purposes of the actuarial valuations were as follows: Valuation as at Discount Rate/Expected Rate of Return on Plan Assets .......... Salary Growth Rate ............................................................................... Turnover Rate.......................................................................................... Pension Increase Rate .......................................................................... Mortality Table Annual Increase in Healthcare Cost ................................................ 31st March, 2019 7.4% to 7.7 % p.a 5% to 8% p.a. 2.50% to 8% p.a. 3% to 5% p.a. Indian Assured Lives Mortality (2006-08) (modified) Ult 8% p.a. 31st March, 2018 7.60% to 7.82% p.a. 5% to 8% p.a. 2.50% to 8% p.a. 3% to 5% p.a. Indian Assured Lives Mortality (2006-08) (modified) Ult 8% p.a. 31st March, 2017 6.90% to 7.51% p.a. 6% to 8% p.a. 8% to 15% p.a. 3% to 5% p.a. Indian Assured Lives Mortality (2006-08) (modified) Ult 8% p.a. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 191 Notes to the Consolidated Financial Statements 24. Provisions (Contd.) 2.3 The amounts recognised in the financial statements and the movements in the net defined benefit obligations over the The Tata Power Company Limited year are as follows: Funded Plan - Gratuity: Balance as at 1st April, 2017 ........................................................................................................................ Current service cost ............................................................................................................................................ Past service cost ................................................................................................................................................... Interest Cost/(Income) ....................................................................................................................................... Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations .............. Amount recognised in Statement of Profit and Loss - Continuing Operations .................. Remeasurement (gains)/losses Return on plan assets excluding amounts included in interest cost/(income) ............................ Actuarial (gains)/losses 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 ................................................................... Employer contribution ...................................................................................................................................... Benefits paid ......................................................................................................................................................... Acquisitions credit/(cost) .................................................................................................................................. Add: Amounts recognised in current year - Discontinued Operations ............................................ Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations ............................ Balance as at 31st March, 2018 .................................................................................................................. Balance as at 31st March, 2018 .................................................................................................................. Current service cost ............................................................................................................................................ Past service cost ................................................................................................................................................... Interest Cost/(Income) ....................................................................................................................................... Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations .............. Amount recognised in Statement of Profit and Loss - Continuing Operations .................. Remeasurement (gains)/losses Return on plan assets excluding amounts included in interest cost/(income) ............................ Actuarial (gains)/losses 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 ................................................................... Employer contribution ...................................................................................................................................... Benefits paid ......................................................................................................................................................... Acquisitions credit/(cost) .................................................................................................................................. Add: Amounts recognised in current year - Discontinued Operations ............................................ Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations ............................ Balance as at 31st March, 2019 .................................................................................................................. Present value of obligation ` crore 308.38 23.04 Nil 19.11 (1.97) 40.18 Fair value of plan assets ` crore (278.56) Nil Nil (17.58) Nil (17.58) Nil 9.63 (45.67) 15.77 (20.27) Nil (22.02) (4.49) 1.97 (14.30) 289.45 Present value of obligation ` crore 289.45 20.60 Nil 22.43 (0.58) 42.45 Nil Nil 3.02 6.70 16.93 26.65 Nil (34.64) (1.40) 0.58 (15.29) 307.80 0.87 Nil Nil Nil 0.87 (6.26) 1.75 0.13 Nil Nil (299.65) Fair value of plan assets ` crore (299.65) Nil Nil (27.34) Nil (27.33) Nil 6.62 Nil (2.26) Nil 4.36 (2.64) 1.43 Nil Nil Nil (323.84) Net amount ` crore 29.82 23.04 Nil 1.53 (1.97) 22.60 0.87 9.63 (45.67) 15.77 (19.40) (6.26) (20.27) (4.36) 1.97 (14.30) (10.20) Net amount ` crore (10.20) 20.60 Nil (4.91) (0.58) 15.11 Nil 6.62 3.02 4.44 16.93 31.01 (2.64) (33.21) (1.40) 0.58 (15.29) (16.03) 192 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 24. Provisions (Contd.) Unfunded Plan - Gratuity and Other Defined Benefit Plans: Balance as at 1st April, 2017 .......................................................................................................................................................... Current service cost .............................................................................................................................................................................. Past service cost ..................................................................................................................................................................................... Past service cost - Plan amendments ............................................................................................................................................. Interest Cost/(Income) ......................................................................................................................................................................... Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations ................................................ Amount recognised in Statement of Profit and Loss - Continuing Operations .................................................... Remeasurement (gains)/losses Actuarial (gains)/losses 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/(cost) .................................................................................................................................................................... Add: Amounts recognised in current year - Discontinued Operations .............................................................................. Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations .............................................................. Balance as at 31st March, 2018 .................................................................................................................................................... Unfunded Plan - Gratuity and Other Defined Benefit Plans: (Contd.) Balance as at 31st March, 2018 .................................................................................................................................................... Current service cost .............................................................................................................................................................................. Past service cost ..................................................................................................................................................................................... Past service cost - Plan amendments ............................................................................................................................................. Interest Cost/(Income) ......................................................................................................................................................................... Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations ................................................ Amount recognised in Statement of Profit and Loss - Continuing Operations .................................................... Remeasurement (gains)/losses Actuarial (gains)/losses arising from changes in demographic assumptions ................................................................. Actuarial (gains)/losses arising from changes in financial assumptions .......................................................................... Actuarial (gains)/losses arising from experience ....................................................................................................................... Less: Amount recognised in other comprehensive income - Discontinued operations ........................... Amount recognised in Other Comprehensive Income ..................................................................................................... Benefits paid ........................................................................................................................................................................................... Acquisitions credit/(cost) .................................................................................................................................................................... Add: Amounts recognised in current year - Discontinued Operations .............................................................................. Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations .............................................................. Balance as at 31st March, 2019 .................................................................................................................................................... Gratuity Amount ` crore 14.70 1.80 (0.18) Nil 1.26 Nil 2.88 Other Defined Benefit Plans Amount ` crore 72.73 4.14 2.51 3.77 5.33 (0.64) 15.11 1.13 (2.55) (0.66) (2.08) (0.71) 5.16 Nil Nil 19.95 8.57 (0.81) 17.62 25.38 (5.79) (0.84) 0.64 (2.73) 104.50 Gratuity Amount ` crore 19.95 2.14 Nil Nil 1.53 Nil 3.67 0.23 Other Defined Benefit Plans Amount ` crore 104.50 5.61 0.79 4.58 8.91 (0.44) 19.45 Nil Nil 0.92 (2.23) Nil 3.41 (8.53) (1.08) (4.88) (1.00) 1.04 Nil Nil 22.58 (4.11) 0.02 0.44 (2.86) 112.56 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 193 The Tata Power Company Limited Notes to the Consolidated Financial Statements 24. Provisions (Contd.) Reconciliation with amount presented in the Balance Sheet Gratuity provision - funded ............................................................................................................ Gratuity provision - unfunded ....................................................................................................... Non current provision for Gratuity (net) ..................................................................................... Add : Current provision for Gratuity (net) ................................................................................... Less : Recognised as an asset for balance in books of Parent Company .......................... Gratuity provision (net) .................................................................................................................... Provision for Other defined benefit obligation Closing provision as per above note ............................................................................................ Non current provision for Post-Employment Medical benefits .......................................... Add : Non current provision for Other defined benefit plans .............................................. Add : Current provision for Post-Employment Medical benefits ........................................ Add : Current provision for Other defined benefit plans ....................................................... Closing provision as per above ...................................................................................................... 2.4 Sensitivity analysis As at 31st March, 2019 ` crore (16.04) 22.58 6.54 39.64 1.66 34.76 6.54 As at 31st March, 2018 ` crore (10.20) 19.95 9.75 33.41 2.75 26.41 9.75 As at 31st March, 2019 ` crore 112.56 As at 31st March, 2018 ` crore 104.50 54.50 47.10 2.56 8.40 112.56 32.33 61.73 1.37 9.07 104.50 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, 2018 31st March, 2019 31st March, 2018 ` crore 18.41 Discount rate .............................. 14.63 Salary/Pension growth rate .. 3.46 Mortality rates ........................... Healthcare cost ......................... 2.16 The above sensitivity analysis is 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. 31st March, 2018 ` crore 17.30 Increase by 15.75 Decrease by 3.58 Increase by 2.59 Decrease by 0.50% Decrease by 0.50% Increase by 1 year Decrease by 0.50% Increase by 31st March, 2019 ` crore 21.59 15.71 4.32 3.38 31st March, 2019 ` crore 19.70 16.91 4.41 3.78 0.50% 0.50% 1 year 0.50% The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period. 2.5 The expected maturity analysis of undiscounted defined benefit obligation (Funded and Unfunded) 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 .................................................................................................. The weighted average duration of the defined benefit obligation is approximately 8.1 years (31st March, 2018 - 8.1 years, 1st April, 2017 - 7 years). 31st March, 2019 ` Crore 44.25 57.91 59.69 59.04 64.32 428.92 31st March, 2018 ` crore 31.51 44.62 45.64 46.93 44.37 258.45 1st April, 2017 ` crore 29.10 39.03 45.15 47.02 47.35 250.41 The contribution expected to be made by the Group during the financial year 2019-20 is ` 2.01 crore (31st March , 2018 ` 2.94 crore). 194 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 24. Provisions (Contd.) 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 under perform 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 and medical cost 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. 2.7 Major categories of plan assets: Plan assets are funded with the trust set up by the Group. The Insurer trust invests the funds in various financial instruments. Major categories of plan assets are as follows: Quoted Equity Instruments ......................................................................................... Debt Instruments ............................................................................................ Government Securities .................................................................................. Cash & Cash Equivalents ............................................................................... 31st March, 2019 % 24% 24% 34% 18% 31st March, 2018 % 20% 44% 25% 11% 31st March, 2017 % 20% 36% 28% 17% 25. Other Liabilities Non-current Consumers' Benefit Account .............................................................. Deferred Revenue - Service Line Contributions from Consumers ................................................................................................ Advance from Customers .................................................................... Liabilities towards Consumers ........................................................... Deferred Rent Liability .......................................................................... Deferred Revenue Liability ................................................................. Deferred Revenue Grant * ................................................................... Total ..................................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 38.91 21.94 21.94 127.12 0.21 Nil 44.73 555.70 17.08 1,873.75 1,215.21 23.52 66.00 45.71 458.07 11.03 1,841.48 1,180.09 23.52 Nil 46.69 367.56 28.71 1,668.51 * The Group has recognized an income of ` 9.61 crore (31st March, 2018 - ` 0.19 crore) on account of Deferred Grants during the year in the statement of profit and loss account. Current Book Overdraft .................................................................................... Statutory Liabilities ............................................................................ Advance from Customers/Public Utilities .................................. Advance from Consumers .............................................................. Liabilities towards Consumers ....................................................... Statutory Consumer Reserves ....................................................... Dividend Tax on Preference Shares .............................................. Deferred Revenue Liability ............................................................. Other Liabilities ................................................................................... Total ..................................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Nil 315.51 154.59 330.20 11.50 561.75 Nil 23.52 102.57 1,499.64 0.08 248.29 369.12 190.35 336.75 545.76 12.33 Nil 83.04 1,785.72 Nil 267.28 225.01 187.70 799.83 531.76 12.21 Nil 41.26 2,065.05 Consolidated Financials I 195 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 26. Current Borrowings Notes to the Consolidated Financial Statements The Tata Power Company Limited (i) (ii) Unsecured - At Amortised Cost From Banks (a) (b) (c) (d) (e) (f ) From Others Buyer’s Line of Credit ............................................... Bank Overdraft - repayable on demand ........... Short-term Loans ...................................................... From Related Parties ................................................ From Others ................................................................ Commercial Papers .................................................. Secured - At Amortised Cost From Banks (a) (b) (c) Buyer’s Line of Credit ............................................... Short-term Loans ...................................................... Bank Overdraft - repayable on demand ........... (d) From Others ................................................................ From Others Total ..................................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Nil 203.69 2,776.16 2,740.39 Nil 7,259.52 12,979.76 165.62 324.59 387.20 18.21 895.62 13,875.38 602.89 119.25 2,046.28 2,368.11 4,504.23 3,808.07 13,448.83 Nil 5,378.45 Nil Nil 5,378.45 18,827.28 672.20 16.64 575.93 1,197.49 4,174.38 3,074.56 9,711.20 Nil 6,568.59 Nil Nil 6,568.59 16,279.79 Security Short-term Loans and Buyer’s Line of Credit availed by various entities of the Group are secured by a charge on immovable property of certain entities, both present and future and are also secured by way of charge on tangible and intangible assets, current assets, receivables and stores and spares, uncalled capital receivables, rights under project documents, project cash flows, pledge of shares and monies receivable of the respective entities. 27. Revenue from Operations Revenue Recognition Accounting Policy Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. Description of performance obligations are as follows: (i) (ii) (iii) Sale of Power - Generation (Thermal and Hydro) Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered. Contract price determined as per tariff regulations. The Group as per the prevalent tariff regulations is required to recover its Annual Revenue Requirement (‘ARR’) comprising of expenditure on account of fuel cost, operations and maintenance expenses, financing costs, taxes and assured return on regulator approved equity with additional incentive for operational efficiencies. Accordingly, rate per unit is determined using input method based on the Group’s efforts to the satisfaction of a performance obligation to deliver power. As per tariff regulations, the Group determines ARR and any surplus/shortfall in recovery of the same is accounted as revenue. Contract Price as per long term agreements Rate per unit is determined using input method based on the Group’s efforts to the satisfaction of a performance obligation to deliver power. Variable consideration forming part of total transaction price will be allocated and recognized when the terms of variable payment relate specifically to the Group’s efforts to satisfy the performance obligation i.e. in the year of occurence of event linked to variable consideration. The transaction price is adjusted for significant financing component, if any and the adjustment is accounted as finance cost. Sale of Power - Generation (Wind and Solar) Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the contracted rate. The transaction price is adjusted for significant financing component, if any and the adjustment is accounted as finance cost. Transmission of Power Revenue from transmission of power is recognised net of cash discount over time for transmission of electricity. The Group as per the prevalent tariff regulations is required to recover its Annual Revenue Requirement (‘ARR’) comprising of expenditure on account of operations and maintenance expenses, financing costs, taxes and assured return on regulator approved equity with additional incentive for operational efficiencies. Input method is used to recognize revenue based on the Group’s efforts 196 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 27. Revenue from Operations (Contd.) (iv) (v) or inputs to the satisfaction of a performance obligation to deliver power. As per tariff regulations, the Group determines ARR and any surplus/shortfall in recovery of the same is accounted as revenue. Sale of Power - Distribution Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the pre determined rate. Trading of power In the arrangements the Group is acting as an agent, the revenue is recognized on net basis when the units of electricity are delivered to power procurers because this is when the Group transfers control over its services and the customer benefits from the Group’s such agency services. The Group determines its revenue on certain contracts net of power purchase cost based on the following factors: a. b. c. Another party is primarily responsible for fulfilling the contract as the Group does not have the ability to direct the use of power supplied or obtain benefits from supply of power. The Group does not have inventory risk before or after the power has been delivered to customers as the power is directly supplied to customer. The Group has no discretion in establishing the price for supply of power. the Group’s consideration in these contracts is only based on the difference between sales price charged to procurer and purchase price given to supplier. For other contract which does not qualify the conditions mentioned above, revenue is determined on gross basis. (vi) Sale of Solar Products Revenue from turnkey contracts, which are generally time bound fixed price contracts, are recognized over the life of the contract using the proportionate completion method, with contracts costs determining the degree of completion. (vii) Rendering of Services Revenue from a contract to provide services is recognised over time based on: Input method where the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of performance obligation. Revenue, including estimated fees or profits, are recorded proportionally based on measure of progress. Output method where direct measurements of value to the customer based on survey’s of performance completed to date. Revenue is recognised net of cash discount at a point in time at the contracted rate. (viii) Consumers are billed on a monthly basis and are given average credit period of 30 to 45 days for payment. No delayed payment charges (‘DPC’) is charged for the initial 30 days from the date of receipt of invoice by customers. Thereafter, DPC is charged at the rate prescribed by the Power Purchase Agreement on the outstanding balance once the dues are received. Revenue in respect of delayed payment charges and and interest on delayed payments leviable as per the relevant contracts are recognised on actual realisation or accrued based on an assessment of certainty of realisation supported by either an acknowledgement from customers or on receipt of favourable order from regulatory authorities. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 197 The Tata Power Company Limited Notes to the Consolidated Financial Statements 27. Revenue from Operations (Contd.) There is no significant judgement involved while evaluating the timing as to when customers obtain control of promised goods and services. (a) Revenue from Power Supply and Transmission Charges ................... Add/(Less): Cash Discount .................................................................................. Income to be adjusted in future tariff determination (Net) ... Add/(Less): Income to be adjusted in future tariff determination (Net) Add/(Less): in respect of earlier years (Refer Note 18) ............................... Add/(Less): Power Purchase Cost ...................................................................... (b) Revenue from Power Supply - Assets Under Finance Lease .............. For the year ended 31st March, 2019 ` crore 28,408.69 (165.19) 226.06 For the year ended 31st March, 2018 ` crore 26,247.65 (182.50) (254.30) (182.31) (2,366.89) 25,920.36 1,030.64 Nil (2,406.91) 23,403.94 1,034.51 (c) Project/Operation Management Services ................................................. 123.89 92.52 (d) Revenue from Sale of: Solar Products ............................................................................................... Electronic Products ..................................................................................... (e) Income from Finance Lease ............................................................................... (f) 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 ............................................... Miscellaneous Revenue and Sundry Credits ..................................... Sale of Fly Ash ............................................................................................... Sale of Coal .................................................................................................... Sale of Carbon Credits ............................................................................... Sale of Products - Trading ......................................................................... Dividend from Equity Investments measured at FVTOCI ............. Dividend from Equity Investments measured at FVTPL ................ Profit on sale of Current Investment - measured at FVTPL ........... Sale of Renewable Energy Certificates ................................................ Total ........................................................................................................................................... 1,214.69 49.23 1,263.92 127.24 15.51 214.36 302.39 Nil 3.56 82.96 15.39 71.46 11.67 315.73 3.89 0.83 2.05 Nil 3.68 49.11 1,092.59 29,558.64 1,194.43 63.32 1,257.75 134.12 11.31 169.23 323.49 11.95 17.87 80.74 14.99 88.66 12.07 166.21 9.32 Nil 3.64 0.32 7.63 Nil 917.43 26,840.27 Details of Revenue from Contract with Customers Particulars Total Revenue from Contract with Customers ......................................................................... Less: Significant Financing Component ..................................................................................... Add: Cash Discount/Rebates etc................................................................................................... Total Revenue as per Contracted Price .................................................................................. 198 I Consolidated Financials For the year ended 31st March, 2019 ` crore 29,248.29 (45.57) 165.19 29,367.91 For the year ended 31st March,2018 ` crore 26,486.66 (43.62) 182.50 26,625.54 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 27. Revenue from Operations (Contd.) Transaction Price - Remaining Performance Obligation The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at the end of the reporting period and an explanation as to when the Group expects to recognise these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Group has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognized corresponds directly with the value to the customer of the entity’s performance completed to date. The aggregate value of performance obligations that are partially unsatisfied as at 31st March, 2019, other than those meeting the exclusion criteria mentioned above is ` 1,39,502 crore. Out of this, the group expects to recognise revenue of around 5.05% within the next one year and the remaining thereafter. Revenue is disaggregated by type and nature of product or services. The table also includes the reconciliation of the disaggregated revenue with the Group’s reportable segment. Particulars (A) Revenue from Contracts with Customers Nature of Goods/Services Generation of power Thermal and Hydro ........................................ Wind and Solar ................................................. Transmission of power ........................................... Distribution of power.............................................. Trading of Power ....................................................... Sale of Solar Products ............................................. Sale of Power from Assets Under Lease ........... Project/Operation Management Services ....... Others ........................................................................... Total Revenue from Contracts with Customers Net Movement in Regulatory Deferral Balances ....................................................................... Net Movement in Regulatory Deferral Balances in respect of earlier years .................... (B) Other Revenue ........................................................... (C) Intersegment Revenue ........................................... Revenue from Continued Operations (including Net Movement in Regulatory Deferral Balances)..................................................... Reportable Segment ` crore Power For the year ended 31st March, 2019 For the year ended 31st March, 2018 Other than Power For the year ended 31st March, 2019 For the year ended 31st March, 2018 Inter Segment For the year ended 31st March, 2019 For the year ended 31st March, 2018 Total For the year ended 31st March, 2019 For the year ended 31st March, 2018 10,146.05 2,015.44 611.79 12,383.70 763.38 Nil 1,030.64 Nil 753.88 9,176.04 1,660.90 644.09 11,350.99 571.92 Nil 1,034.51 2.39 526.16 Nil Nil Nil Nil Nil 1,214.69 Nil 123.89 204.83 Nil Nil Nil Nil Nil 1,194.43 Nil 90.13 235.10 27,704.88 24,967.00 1,543.41 1,519.66 (340.19) (409.85) Nil Nil 274.26 27,638.95 292.56 Nil 24,557.15 316.60 Nil 1,543.41 17.79 Nil 1,519.66 37.01 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 10,146.05 2,015.44 611.79 12,383.70 763.38 1,214.69 1,030.64 123.89 958.71 9,176.04 1,660.90 644.09 11,350.99 571.92 1,194.43 1,034.51 92.52 761.26 Nil 29,248.29 26,486.66 Nil (340.19) (409.85) Nil Nil Nil 274.26 29,182.36 310.35 Nil 26,076.81 353.61 4.36 8.90 1,984.25 1,567.87 (1,988.61) (1,576.77) Nil Nil 27,935.87 24,882.65 3,545.45 3,124.54 (1,988.61) (1,576.77) 29,492.71 26,430.42 (D) Revenue from Discontinued Operations ....... Nil Nil 143.59 286.74 Nil Nil 143.59 286.74 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 199 The Tata Power Company Limited Notes to the Consolidated Financial Statements 27. Revenue from Operations (Contd.) Contract Balances As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore Contract Assets Recoverable from Consumers ..................................................................... Non-Current.................................................................................................. Current ........................................................................................................... Unbilled Revenue other than passage of time ..................................... Total Contract Assets .................................................................................. Contract Liabilities Deferred Revenue Liability Non-Current ................................................................................................ Current ........................................................................................................... Advance from Customers Non-Current ................................................................................................. Current .......................................................................................................... Liabilities towards Consumers Non-Current ............................................................................................... Current ......................................................................................................... Total Contract Liabilities .......................................................................... Receivables Trade Receivables (Gross) Non-Current ................................................................................................. Current .......................................................................................................... Unbilled Revenue for passage of time Non-Current ................................................................................................. Current .......................................................................................................... (Less): Allowances for Doubtful Debts Non-Current ................................................................................................. Current .......................................................................................................... Net Receivables ............................................................................................. 404.79 1,100.54 11.15 1,516.48 555.70 23.52 0.21 330.20 Nil 11.50 921.13 197.54 4,836.73 81.11 837.85 (4.55) (391.47) 5,557.21 675.98 634.65 Nil 1,310.63 458.07 Nil 23.52 190.35 66.00 336.75 1,074.69 196.29 3,112.16 62.82 810.09 (6.24) (323.23) 3,851.89 771.09 710.04 Nil 1,481.13 367.56 Nil 23.52 187.70 Nil 799.83 1,378.61 194.16 4,142.70 42.91 1,081.92 (6.24) (310.58) 5,144.87 Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets are transferred to receivables when the rights become unconditional and contract liabilities are recognized as and when the performance obligation is satisfied. 200 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 27. Revenue from Operations (Contd.) Significant changes in the contract assets and the contract liabilities balances during the year are as follows: Movement in Recoverable from consumers and Liabilities towards consumers Opening Balance - Recoverable from consumers .................................................................................................. - Liabilities towards consumers ................................................................................................. Income to be adjusted in future tariff determination (Net) ......................................................... Income to be adjusted in future tariff determination (Net) in respect of earlier years ...... Refund to Customers (including Group's Distribution Business) ............................................... Deferred tax recoverable/(payable) [Refer Note 33 (b)] ................................................................ Revenue recognized during the year ................................................................................................... Transfer to receivables ............................................................................................................................... Others .............................................................................................................................................................. Closing Balance - Recoverable from consumers .................................................................................................. - Liabilities towards consumers ................................................................................................. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 1,310.63 (402.75) 907.88 226.06 (182.31) 288.71 322.50 679.60 (736.52) (12.09) 585.95 1,505.33 (11.50) 1,493.83 1,481.13 (799.83) 681.30 (254.30) Nil (27.59) (161.57) 1,127.66 (450.67) (6.95) 226.58 1,310.63 (402.75) 907.88 Movement in Unbilled Revenue other than passage of time, Advance from consumers and Deferred Revenue Liabilities Opening Balance - Unbilled Revenue other than passage of time .................................................................. - Advance from consumers ......................................................................................................... - Deferred Revenue Liabilities .................................................................................................... Revenue recognized during the year ................................................................................................... Advance received during the year ........................................................................................................ Interest for the year .................................................................................................................................... Transfer to receivables ............................................................................................................................... Closing Balance - Unbilled Revenue other than passage of time .................................................................. - Advance from consumers ......................................................................................................... - Deferred Revenue Liabilities .................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Nil 213.87 458.07 671.94 (158.28) 392.43 45.57 (30.88) 248.84 11.15 330.41 579.22 920.78 Nil 211.22 367.56 578.78 (176.51) 226.05 43.62 Nil 93.16 Nil 213.87 458.07 671.94 Consolidated Financials I 201 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements The Tata Power Company Limited 28. Other Income Accounting Policy 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 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. (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 Controlled Entity ................................................... Interest on Loans and Advances ......................................................................... (ii) Others Interest on Income-tax Refund ........................................................................... (b) Dividend Income From Current Investments measured at FVTPL ............................................. From Non-current Investments measured at FVT ........................................ (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 Commission earned ................................................................................................ Gain/(Loss) on Disposal of Property, Plant and Equipment (Net) ........... Delayed Payment Charges .................................................................................... Other Income ............................................................................................................. Management Fees ................................................................................................... Total ........................................................................................................................................................ For the year ended 31st March, 2019 ` crore For the year ended 31st March,2018 ` crore 13.87 0.12 3.16 16.70 20.40 1.24 13.59 69.08 7.18 76.26 Nil 15.10 15.10 44.36 0.88 45.24 9.83 (30.05) 87.48 Nil 191.97 259.23 395.83 76.30 0.82 5.24 11.72 17.23 2.44 1.65 115.40 5.02 120.42 0.82 17.85 18.67 51.34 Nil 51.34 9.77 4.54 26.48 23.48 177.99 242.26 432.69 202 I Consolidated Financials 100th Annual Report 2018-19 29. Raw Materials Consumed and Decrease/(Increase) in Work-in-Progress/Finished Goods/Stock-in-Trade Notes to the Consolidated Financial Statements Raw Materials Consumed Opening Stock Add: Purchases .................................................................................................................... Less: Closing Stock ............................................................................................................. Total ........................................................................................................................................................ Decrease/(Increase) 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: Reclassified to Assets Classified as Held for Sale ........................................... Less: Inventory at the end of the year ......................................................................... Finished Goods Inventory at the beginning of the year ......................................................................... Add: Purchase/Used in the period ................................................................................ Less: Reclassified to Assets Classified as Held for Sale ........................................... Less: Inventory at the end of the year ......................................................................... Total ........................................................................................................................................................ 30. Employee Benefits Expense For the year ended 31st March, 2019 ` crore For the year ended 31st March,2018 ` crore 133.05 943.19 1,076.24 156.89 919.35 6.36 Nil Nil 6.36 2.93 3.43 103.35 Nil Nil 103.35 82.41 20.94 24.37 158.76 723.26 882.02 133.05 748.97 29.71 0.18 (23.69) 6.20 6.36 (0.16) 110.13 Nil (15.13) 95.00 103.35 (8.35) (8.51) For the year ended 31st March, 2019 ` crore For the year ended 31st March,2018 ` crore Salaries and Wages ............................................................................................................................ Contribution to Provident Fund [Refer Note 24 (1)] .............................................................. Contribution to Superannuation Fund [Refer Note 24 (1)] ................................................. Gratuity [Refer Note 24 (2.3)].......................................................................................................... Leave Encashment Scheme ............................................................................................................ Pension ................................................................................................................................................... Staff Welfare Expenses ...................................................................................................................... Less: Employee Cost Capitalised ................................................................................................ Employee Cost Inventorised ............................................................................................. Total ........................................................................................................................................................ 1,198.75 83.52 10.63 18.78 27.35 15.93 142.64 1,497.60 149.50 9.05 158.55 1,339.05 1,188.65 84.26 10.20 25.48 8.86 5.98 162.41 1,485.84 93.08 10.84 103.92 1,381.92 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 203 The Tata Power Company Limited Notes to the Consolidated Financial Statements 31. Finance Costs Accounting Policy 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. For the year ended 31st March, 2019 ` crore For the year ended 31st March,2018 ` crore (a) Interest Expense: On Borrowings (Carried at Amortised Cost) Interest on Debentures .......................................................................................... Interest on - Euro Notes ........................................................................................ Interest on Loans - Banks & Financial Institutions ........................................ Interest paid to Joint Ventures ............................................................................. Others Interest on Consumer Security Deposits (Carried at Amortised Cost) .. Other Interest and Commitment Charges (Refer Note 44) ....................... Interest on Non-convertible Cumulative Redeemable Preference Shares ........................................................................................................................... Less: Interest Capitalised ........................................................................................ (b) Other Borrowing Cost: Loss/(Gain) arising on Interest Rate Swap derivative contracts designated as hedging instruments in fair value hedges ......................... Other Finance Costs ................................................................................................ Foreign Exchange Loss/(Gain) on Borrowings (Net) .................................... Less: Finance Charges Capitalised ....................................................................... Total ........................................................................................................................................................ 906.77 Nil 2,658.33 73.60 72.56 125.78 35.46 3,872.50 47.35 3,825.15 (7.91) 151.96 221.84 (21.04) 344.85 4,170.00 1,054.83 13.01 2,150.26 44.95 58.78 82.49 35.50 3,439.82 72.81 3,367.01 Nil 146.45 248.18 (0.16) 394.47 3,761.48 Note: The weighted average capitalisation rate on the Group general borrowings is in the range of 8.28% to 8.63% per annum (31st March, 2018 - 8.10% to 9.50% per annum). 204 I Consolidated Financials 100th Annual Report 2018-19 32. Other Expenses Notes to the Consolidated Financial Statements For the year ended 31st March, 2019 ` crore For the year ended 31st March,2018 ` crore Consumption of Stores, Oil, etc. ................................................................................................... Rental of Land, Buildings, Plant and Equipment, etc............................................................ Repairs and Maintenance - (i) (ii) (iii) To Buildings and Civil Works ............................................................................................. To Machinery and Hydraulic Works ............................................................................... To Furniture, Vehicles, etc. ................................................................................................. Rates and Taxes .................................................................................................................................. Insurance .............................................................................................................................................. Other Operation Expenses ............................................................................................................. Ash Disposal Expenses .................................................................................................................... Warranty Charges .............................................................................................................................. Travelling and Conveyance Expenses ........................................................................................ Consultants' Fees ............................................................................................................................... Compensation .................................................................................................................................... Auditors' Remuneration .................................................................................................................. Cost of Services Procured ............................................................................................................... Bad Debts ............................................................................................................................................. Allowance for Doubtful Debts and Advances (Net) ............................................................. Leasehold Land Payment ............................................................................................................... Provision For Contingencies .......................................................................................................... Net Loss on Foreign Exchange ..................................................................................................... Impairment in Carrying Amount of Non-current Investments in Joint Ventures ...... MTM Profit/(Loss) on Investments carried at Fair value through Profit or loss ........... Donations ............................................................................................................................................. Legal Charges ..................................................................................................................................... Corporate Social Responsibility Expenses................................................................................ Impairment of Non-current Assets held for Sale ................................................................... Excise Duty Paid ................................................................................................................................. Transfer to Contingency Reserve ................................................................................................. Marketing expenses ......................................................................................................................... Miscellaneous Expenses ................................................................................................................. Total ....................................................................................................................................................... 88.90 113.81 119.41 512.95 73.22 705.58 91.58 65.76 370.58 47.81 15.14 56.09 54.00 2.36 11.34 239.30 2.09 72.54 10.48 0.06 140.81 (2.48) 1.18 20.00 54.51 39.46 Nil Nil 16.00 1.80 41.45 2,260.15 145.77 92.20 114.92 510.48 67.64 693.04 116.00 74.32 427.12 50.13 13.65 54.61 72.56 Nil 12.55 261.73 0.35 12.74 0.17 (0.21) 114.10 Nil (0.61) 4.84 61.92 39.98 6.00 0.22 14.00 13.80 93.13 2,374.11 33. Income taxes 33 a. Current Tax Accounting Policy Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the respective subsidiary companies operates and generates taxable income. Current income tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 205 Notes to the Consolidated Financial Statements 33. Income taxes (Contd.) (i) Income taxes recognised in statement of profit and loss - Continuing Operations The Tata Power Company Limited Current tax ....................................................................................................................................... Deferred tax (Refer Note 12a and b) ....................................................................................... Deferred Tax in respect of earlier years (Refer Note 12a and b) .................................... Deferred Tax (Recoverable) / Payable ..................................................................................... Total income tax expense recognised in the current year ...................................... 31st March, 2019 ` crore 584.78 544.02 18.91 (491.62) 656.09 31st March, 2018 ` crore 663.69 (840.23) Nil 338.51 161.97 (ii) Income taxes recognised in statement of profit and loss - Discontinued Operations Current tax ....................................................................................................................................... Deferred tax ..................................................................................................................................... Total income tax expense recognised in the current year ...................................... (71.92) 5.94 (65.98) (17.36) 3.23 (14.13) The income tax expense for the year can be reconciled to the accounting profit as follows: 31st March, 2019 ` crore 31st March, 2018 ` crore Profit /(Loss) before tax for Continuing Operation ........................................................... Profit/(Loss) before tax for Discontinuing Operation ...................................................... Profit/(Loss) before tax considered for tax working ................................................. Income tax expense calculated at 34.944% (31st March, 2018 - 34.608%) ............. Add/(Less): Tax effect on account of : Share of profit of Associate and Joint venture ................................................................... Deferred tax not recognised on Impairment provision/(reversal) of non current investment ...................................................................................................................................... Deduction during tax holiday period ................................................................................... MAT credit and deferred tax asset on losses pertaining to earlier years .................. Exempt Income ............................................................................................................................. MAT credit and deferred tax asset on losses not recognised ....................................... Profit taxable at different tax rates including for certain subsidiaries ...................... Non deductible expenses ......................................................................................................... Changes in income tax rate from 34.608% to 34.944% .................................................. Deferred Tax (Recoverable)/Payable ...................................................................................... Income tax expense recognised in statement of profit and loss ........................ Tax expense for Continuing Operations .............................................................................. Tax expense for Discontinued Operations .......................................................................... Income tax expense recognised in statement of profit and loss ........................ Note: 31st March, 2019 ` crore 3,222.34 (191.82) 3,030.52 1,058.98 31st March, 2018 ` crore 2,844.56 (85.87) 2,758.69 979.16 (449.74) 26.09 (0.59) (72.75) (20.22) 706.78 (291.81) 124.99 Nil (491.62) 590.11 656.09 (65.98) 590.11 (537.78) (502.68) (110.33) (584.91) (62.09) 611.72 (103.79) 112.58 7.45 338.51 147.84 161.97 (14.13) 147.84 The tax rate used for the years 2018-19 and 2017-18 reconciliations above is the corporate tax rate of 34.944% and 34.608% respectively payable by corporate entities in India on taxable profits under the Indian tax law. (iii) Income tax recognised directly in equity Effect of Distribution on Unsecured Perpetual Securities Current tax ....................................................................................................................................... Deferred tax .................................................................................................................................... Income tax recognised directly in equity ........................................................................ 31st March, 2019 ` crore 31st March, 2018 ` crore (59.75) Nil (59.75) (59.18) 0.24 (58.94) 206 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 33. Income taxes (Contd.) (iv) Income tax recognised in other comprehensive income Current tax Net gain on sale of investment in equity shares at FVTOCI .......................................... Less : Remeasurement of Defined Benefit Plan ................................................................. Discontinued Operations ........................................................................................................ Deferred tax Net fair value gain on investments in equity shares at FVTOCI ................................... Remeasurements of defined benefit obligation ............................................................... Indexation benefit on investment held for sale .............................................................. Total income tax recognised in other comprehensive income ............................ Bifurcation of the income tax recognised in other comprehensive income into: Items that will not be reclassified to statement of profit and loss ............................. 31st March, 2019 ` crore 31st March, 2018 ` crore 1.14 (7.95) (6.81) (0.40) 0.02 0.04 Nil 0.06 (7.15) (7.15) (7.15) 51.36 (0.85) 50.51 Nil (21.99) 0.12 (370.00) (391.87) (341.36) (341.36) (341.36) 33 b. Deferred Tax (Recoverable) / Payable It represents deferred tax liabilities / (assets) required to be passed on to the consumers and its relates to : Non - Rate Regulated Activity (Transmission and Generation) (Refer Note below)..... Rate Regulated Activity (Distribution) (Refer note 18) ........................................................... 31st March,2019 ` crore (322.50) (169.12) (491.62) 31st March, 2018 ` crore 161.57 176.94 338.51 Note: In its regulated operations, the Group is entitled to a fixed return on its investment net of tax and accordingly tax is a pass-through cost. Maharashtra Electricity Regulatory Commission, vide its order dated 2nd January, 2019, has approved the extension of Power Purchase Agreement (PPA) for generation plants for a period of five years starting 1st April, 2019. Consequently, deferred tax liability expected to be recovered amounting to ₹ 272 crore has been recognized as a recoverable from consumers resulting in corresponding credit in deferred tax recoverable for the current year. 34. Commitments: (a) (b) Estimated amount of Contracts remaining to be executed on capital account and not provided for (including consumer funded assets): (i) (ii) (iii) Other Commitments (i) the Group .................................................................................. Group’s share of Joint Ventures ......................................... Group’s share of Associates................................................. 31st March, 2019 ` crore 31st March, 2018 ` crore 31st March, 2017 ` crore 1,098.27 214.49 Nil 797.80 180.27 Nil 1,508.24 99.29 82.15 (ii) (iii) The Group has given an undertaking for non- disposal of shares to the lenders of Tata Power Delhi Distribution Ltd. in respect of its outstanding borrowings. .............................................................................. Vendor purchase commitments and contracts to provide future post sale services ...................................... In terms of the Port Service Agreement entered into by the Group and valid up to 31st March, 2040, the Group is required to pay (a) Annual Fixed handling charges which are escalable as per CERC notification; and (b) 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 amounts outstanding shall be payable by the Group. 137.50 494.50 539.82 385.63 341.88 251.38 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 207 Notes to the Consolidated Financial Statements The Tata Power Company Limited 35. Contingent Liabilities a) (iii) Contingent liabilities Claims against the Group not probable and hence not acknowledged as debts consists of (i) Demand including interest and penalty demand disputed by the Group relating to Entry tax claims for the financial years 2005-06 to 2013-14. [Refer Note 44] ........................................................................... (ii)(a) 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. (b) Disallowance of costs recoverable from consumers by Maharashtra Electricity Regulatory Commission in the tariff true up order ............................................................ Interest and penalty pertaining to Customs Duty claims disputed by the Group relating to applicability and classification of coal ........................................................ (iv) Demand disputed by the Group relating to Service tax................................................................................................. (v)(a) Way Leave fees (including interest) claims disputed by the Group relating to rates charged. ........................... (b) Demand towards periodic revision in lease rent disputed by the Group. .......................................................... Rates, Cess, Green Cess, Excise and Custom Duty claims disputed by the Group. ............................................. (vii) Octroi claims disputed by the Group, in respect of octroi exemption claimed. .................................................... (viii) Compensation disputed by private land owners in respect of private land acquired under the provisions of Maharashtra Industrial Development Act, 1961. ..... (ix) Disputes relating to power purchase agreements ....... Other Claims .............................................................................. (x) for Unscheduled charges (xi) Demand interchanged (UI) of power................................................... 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) is set-off against Demand for royalty payment recoverable Value Added Tax (VAT) paid on inputs for coal production. ....................................................................... Other claims ............................................................................. towards (vi) (ii) Group's share of Associates Other claims .............................................................................. 31st March, 2019 ` crore 31st March, 2018 ` crore 31st March, 2017 ` crore Nil 2,035.18 1,967.43 269.00 269.00 269.00 261.00 110.81 402.45 39.18 Nil 523.49 5.03 22.00 199.23 173.75 215.02 Nil Nil 110.81 402.45 35.29 150.00 396.32 5.03 22.00 272.73 177.92 Nil 246.33 Nil 84.18 150.00 416.66 5.03 22.00 246.47 161.83 Nil 29.24 40.79 Nil 15.34 38.63 0.29 2,290.99 3,930.99 17.93 72.57 539.03 4,198.46 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. 3 The above Contingent Liabilities include those pertaining to Regulated Business which on unfavourable outcome can be recovered from consumers. 208 I Consolidated Financials 100th Annual Report 2018-19 35. Contingent Liabilities (Contd.) Notes to the Consolidated Financial Statements 31st March, 2019 ` crore 31st March, 2018 ` crore 31st March, 2017 ` crore b) Other Contingent Liabilities (not probable) 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 ` 9.09 crore (31st March, 2018 - ` 8.95 crore, 1st April, 2017 - ` 12.57 crore)]. ...................................................................................................... Group’s share of Joint Ventures ...................................................... Group’s share of Associates.............................................................. c) Indirect exposures of the Group (i) (ii) Guarantees given to the lenders of Joint Ventures for the borrowings availed Tubed Coal Mines Ltd. ....................................................... Mandakini Coal Company Ltd. ....................................... Cennergi Pty. Ltd. ................................................................ The Group has pledged its shares of investments in joint ventures and others with the lenders for borrowings availed Joint Ventures: Powerlinks Transmission Ltd. ......................................... Industrial Energy Ltd. ........................................................ Mandakini Coal Company Ltd. ...................................... Itezhi Tezhi Power Corporation * ................................. Others: Tata Teleservices Limited ................................................. 640.03 84.17 2.50 786.02 Nil 0.03 428.25 135.68 466.23 31st March, 2019 ` crore 31st March, 2018 ` crore 31st March, 2017 ` crore Nil Nil Nil Nil Nil Nil 11.36 20.26 Nil 31st March, 2019 Nos. 31st March, 2018 Nos. 31st March, 2017 Nos. 23,86,80,000 25,13,48,400 2,00,43,000 4,52,500 23,86,80,000 25,13,48,400 2,00,43,000 4,52,500 23,86,80,000 12,56,74,200 2,00,43,000 4,52,500 Nil Nil 18,27,08,138 d) (i) In respect of the Standby Charges dispute with Adani Electricity Mumbai Limited (Adani Electricity) erstwhile 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 Adani Electricity 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, 2019 the accumulated interest was ` 251.96 crore (31st March, 2018 - ` 240.76 crore) (` 11.20 crore for the year ended 31st March, 2019). 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 Adani Electricity 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 Adani Electricity. 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. (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 35(d)(i) above. There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated 28th February, 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. The Group is consulting Legal counsel for further clarity and evaluating its impact on its financial statement. The Group, in respect of the above mentioned Contingent Liabilities has assessed that it is only possible but not probable that outflow of economic resources will be required. e) Consolidated Financials I 209 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 36. Other Disputes Notes to the Consolidated Financial Statements a) b) 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 these matters. Capital work in progress include amount incurred for Vikhroli transmission lines project amounting to ` 57 crore ordered as deemed closure by Maharahstra Electricity Regulatory Commission. The matter has been disputed by the Group and believes that it will be able to recover the costs incurred for the said project. Accordingly, no impairment provision is required in respect of the same. 37. Earnings Per Share (EPS) Accounting Policy Basic earnings per equity share is computed by dividing the net profit attributable to the equity holders of the Group 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 Group 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. 210 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 37. Earnings Per Share (EPS) (Contd.) Particulars A. EPS - Continuing Operations (before net movement in Regulatory Defferal Balances) Net Profit from Continuing Operations ......................................................................... Net movement in Regulatory Deferral Balances ........................................................ Income-tax attributable to Regulatory Deferral Balances ...................................... Net movement in Regulatory Deferral Balances (Net of tax) ................................ Net Profit (before net movement in Regulatory Deferral Balances) .................. (Less): Distribution on Perpetual Securities (on accrual basis) (Net of tax) ....... Profit from Continuing Operations attributable to equity shareholders (before net movement in Regulatory Deferral Balances ................................. Weighted average number of equity shares for Basic and Diluted EPS ... EPS - Continuing Operations (before net movement in Regulatory Deferral Balances) - Basic and Diluted (In ₹) ................................................................................................. Particulars B. EPS - Continuing Operations (after net movement in Regulatory Deferral Balances) Net Profit for the year .......................................................................................................... (Less): Distribution on Perpetual Securities (on accrual basis) (Net of tax) ...... Profit/ (Loss) attributable to equity shareholders (after net movement in Regulatory Deferral Balances)................................................................................ Weighted average number of equity shares for Basic and Diluted EPS .. EPS - Continuing operations (after net movement in Regulatory Deferral Balances) - Basic and Diluted (In ₹) ................................................................................................ EPS - Discontinued Operations Profit from Net /(Loss) Discontinued Operations ................................................ Weighted average no. of equity shares for Basic and Diluted EPS ............. EPS - Discontinued Operations .................................................................................... - Basic and Diluted (In `) .................................................................................................. C. D. For the year ended 31st March, 2019 ` crore* For the year ended 31st March, 2018 ` crore* 2,316.78 (65.93) 23.04 (42.89) 2,359.67 (111.25) 2,480.04 (409.85) 141.84 (268.01) 2,748.05 (111.82) 2,248.42 2,707,605,570 2,636.23 2,707,605,570 8.30 9.74 For the year ended 31st March, 2019 ` crore* For the year ended 31st March, 2018 ` crore* 2,316.78 (111.25) 2,480.04 (111.82) 2,205.53 2,368.22 2,707,605,570 2,707,605,570 8.15 8.75 (125.84) 270,76,05,570 (71.74) 270,76,05,570 (0.46) (0.26) EPS - Total Operations (after net movement in Regulatory Defferal Balances) Net (Loss) / Profit from Total Operations (after net movement in Regulatory Deferral Balances)............................................................................................................... Less: Distribution on Perpetual Securities (on accrual basis) (Net of tax) ....... Net profit from total operations attributable to equity shareholders of parent (after net movement in Regulatory Deferral Balances) ................. Weighted average number of equity shares for Basic and Diluted EPS EPS - Total Operations (after net movement in Regulatory Deferral Balances) .............................................................................................................................. - Basic and Diluted (In ₹) .............................................................................................. * All numbers are in ₹ crore except weighted average number of equity shares and Basic and Diluted EPS 2,707,605,570 7.69 2,190.94 (111.25) 2,079.69 2,408.30 (111.82) 2,296.48 2,707,605,570 8.49 Consolidated Financials I 211 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements 38. Related Party Disclosures: Disclosure as required by Ind AS 24 - “Related Party Disclosures” are as follows: Names of the related parties and description of relationship: The Tata Power Company Limited (a) Related parties where control exists: (i) Employment Benefit Funds 1) 2) 3) 4) 5) 6) Tata Power Superannuation Fund Tata Power Gratuity Fund Tata Power Consolidated Provident Fund M/s Maithon Power Gratuity Fund (Fund) North Delhi Power Ltd. Employees Group Gratuity Assurance Scheme (Gratuity Fund) Special Voluntary Retirement Scheme Retirees Terminal Benefit Fund, 2004 (SVRS RTBF - 2004) (b) Other related parties (where transactions have taken place during the year and previous year / balances outstanding) : (i) (ii) (c) (i) Associates 1) 3) Tata Projects Ltd. Panatone Finvest Ltd. (ceased to be an associate w.e.f. 28th May,2018) Nelito Systems Ltd. The Associated Building Co. Ltd. 5) 7) Joint Venture Companies Cennergi Pty. Ltd. 1) Tubed Coal Mines Ltd. 3) Adjaristsqali Georgia LLC 5) Powerlinks Transmission Ltd. 7) Dugar Hydro Power Ltd. 9) PT Arutmin Indonesia 11) PT Mitratama Perkasa 13) Resurgent Power Ventures Pte Ltd. 15) PT Antang Gunung Meratus 17) Koromkheti Netherlands B.V. 19) Renascent Power Ventures Private Ltd. 21) Promoters holding together with its Subsidiary more than 20% Subsidiaries and Jointly Controlled Entities of Promoters - Promoter Group (where transactions have taken place during the year and previous year / balances outstanding) : Tata Business Support Services Limited (ceased to be an Associate and became a Subsidiary w.e.f. 27th November,2017) Ewart Investments Limited Tata AG, Zug Tata AIG General Insurance Company Limited Tata Capital Limited Tata Consultancy Services Limited Tata Consulting Engineers Limited 3) 5) 7) 9) 11) 13) 1) 2) 4) 6) 2) 4) 6) 8) 10) 12) 14) 16) 18) 20) Yashmun Engineers Ltd. Tata Communications Ltd. (ceased to be an associate w.e.f. 28th May,2018) Dagacchu Hydro Power Corporation Ltd. Mandakini Coal Company Ltd. Itezhi Tezhi Power Corporation LTH Milcom Private Ltd. Industrial Energy Ltd. Koromkheti Georgia LLC PT Kaltim Prima Coal PT Dwikarya Prima Abadi PT Baramulti Sukessarana Tbk Adjaristsqali Netherlands B.V. Indocoal Resources (Cayman) Ltd. Tata Sons Pvt. Ltd. 2) 4) 6) 8) 10) 12) 14) Tata Advanced Material Ltd (ceased to be Subsidiary w.e.f. 27th March, 2019 TRIL Infopark Limited World-one Development Company Pvt. Ltd. J R D Tata Trust Sir Dorabji Tata Trust Sir Ratan Tata Trust Niskalp Infrastructure Services Limited (Formerly Niskalp Energy Limited) Taj Air Limited 15) Tata Housing Development Company Limited 16) 212 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 38. Related Party Disclosures: (Contd.) (a) Related parties where control exists: 17) 19) 21) 23) 25) 27) 29) 31) 33) 35) 37) 39) 41) 43) 45) Tata Industries Limited (ceased to be Subsidiary and became a Joint Venture w.e.f. 27th March, 2019) Tata Interactive Systems AG Tata Investment Corporation Limited Tata Realty and Infrastructure Limited Tata Teleservices (Maharashtra) Limited (ceased to be an Associate and became a Subsidiary w.e.f. 31st October, 2017) Tata Teleservices Limited (ceased to be an Associate and became a Subsidiary w.e.f. 27th November, 2017) TC Travel and Services Limited THDC Management Services Limited (formerly THDC Facility Management Limited) Tata Cleantech Capital Limited Tata Sky Limited Tata Capital Financial Services Limited Tata International Limited Tata Capital Forex Limited (formerly TT Holdings & Services Limited) Tata Asset Management Limited Infiniti Retail Limited 18) 20) 22) 24) 26) 28) 30) 32) 34) 36) 38) 40) 42) 44) 46) (d) Key Management Personnel 1) 3) 5) 7) 9) 11) 13) 15) 17) 19) Anil Sardana - CEO & Managing Director (ceases to be Director w.e.f. 30th April, 2018) Ashok Sethi - COO & Executive Director Ramesh Subramanyam - Chief Financial Officer 2) 4) 6) Hanoz Minoo Mistry - Company Secretary Anjali Bansal S. Padmanabhan (ceases to be Director w.e.f. 16th November, 2017) Homiar S. Vachha (upto 22nd April, 2017) Nawshir H. Mirza Deepak M. Satwalekar Pravin H. Kutumbe 8) 10) 12) 14) 16) 18) Tata Unistore Limited (Formerly Tata Industrial Services Limited) (ceased to be an Associate and became a Subsidiary w.e.f. 29th March,2018) Ecofirst Services Limited Progressive Electoral Trust Tata Limited Tata Communications Limited (ceased to be an Associate and became a Subsidiary w.e.f. 28th May,2018) Tata Housing Development Co. Employees Provident Fund Limited. Tata Consultancy Services Employees Provident Fund Tata Technologies (India) Limited Employees Provident Fund Tata Projects Provident Fund Trust STT Global Data Centres India Private Limited (Formerly Tata Communications Data Centers Private Limited) (w.e.f. 28th May,2018) Tata AIA Life Insurance Company Limited Tata Advanced System Limited Tata Communications Payment Solutions Limited (w.e.f. 28th May, 2018) Tata International Singapore Pte. Limited Panatone Finvest Limited Praveer Sinha CEO & Managing Director (w.e.f. 01st May, 2018) N. Chandrasekaran Sandhya S. Kudtarkar (ceases to be Director w.e.f. 16th November, 2017) Saurabh Agrawal (w.e.f. 17th November, 2017) Kesava Menon Chandrasekhar (w.e.f. 4th May, 2017) Hemant Bhargava (w.e.f. 24th August, 2017) Sanjay V. Bhandarkar Banmali Agrawala (w.e.f. 17th November, 2017) Vibha U. Padalkar (e) Relative of Key Managerial Personnel (where transactions have taken place during the year and previous year / balances outstanding) Neville Minoo Mistry (Brother of Hanoz Minoo Mistry) E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 213 38. Related Party Disclosures: (Contd.) (f) Details of Transactions: Particulars Purchase of goods/power (Net of Discount) �� Sale of goods/power (Net of Discount) �� Purchase of fixed assets �� Sale of fixed assets �� Rendering of services�� Receiving of services �� Brand equity contribution �� Contribution to Employee Benefit Plans �� Guarantee, collaterals etc� cancelled �� Remuneration paid - short term employee benefits �� Long term employee benefits paid �� Short term employee benefits paid �� Interest income �� Interest paid �� Dividend received �� Dividend paid �� Guarantee commission earned �� Loans given �� Impairment of Investments- Reversal �� Impairment of Investments �� Damages towards contractual obligation �� Sale of Investments�� Loans repaid (including loan converted into equity) �� Loans provided for as doubtful advances (including interest)�� Deposits taken �� Deposits refunded �� Purchase of Investments �� Loan taken �� 214 I Consolidated Financials Associates Joint Ventures 125�88 124.42 0�15 41.39 9�69 1.80 0�08 - 0�16 0.23 10�94 10.30 - - - - - - 2,935�59 3,480.26 - - - - - - 206�88 255.90 0�08 - - - - - - 31.62 $ Key Management Personnel - - - - - - - - - - - - - - - - - - Employee Benefit Funds/Trust - - - - - - - - - - - - - - 48�10 34.23 - - - - - - - - - - - - 9�74 15.45 - - - - 1�00 - 2�48 - - - - - - - 1�00 - - - 0�01 - - 0.81 - - - - - - - - - - 1�24 2.41 73�75 28.64 210�79 1,011.96 - - 1�18 1.28 7�05 0.07 - 2,197.66 - 527.55 - - - - 116�83 781.10 - 0.07 50�00 - 50�00 - - 106.22 665�77 1,175.00 23�91 * 25.55 * - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1�15 # - 0�55 # - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ` crore Promoters Promoter Group 0�02 0.10 72�93 55.08 3�02 20.72 0�05 - 237�45 2.29 86�49 47.80 - - - - - - - - - - - - 0�01 - 26�70 14.95 1�97 0.01 1�77 1.85 - - - 2.90 - - - - - 107.08 619�46 50.39 - 3.32 - - 0�41 1.86 1�55 1.15 - 54.35 - - - - - - - - - - 1�09 1.00 0�43 7.43 11�96 35.70 - - - - - - - - - - - - - - 5�34 5.34 109�17 109.17 - - - - - - - - - - 1,542�61 - - - - - - - - - - - - - The Tata Power Company LimitedNotes to the Consolidated Financial Statements38. Related Party Disclosures: (Contd.) (f) Details of Transactions: Particulars Loan adjusted against liability �� Liability written back �� Donation given �� Balances outstanding Perpetual Securities Outstanding (including interest thereon) �� 2019 2018 2017 Redeemable Non-Convertible Debentures �� 2019 2018 2017 Other receivables �� 2019 2018 2017 Loans given (including interest thereon)�� 2019 2018 2017 Loans provided for as doubtful advances (including interest thereon)�� 2019 2018 2017 Deposits taken outstanding �� 2019 2018 2017 Balances outstanding Associates Joint Ventures - - - 0.51 - - 830�34 - - - - - Key Management Personnel - - 2�03 - - - Employee Benefit Funds/Trust - - - - - - - - - - - - 1�26 1.14 7.74 1�27 1.27 1.27 1�27 1.27 1.27 - - 1.53 - - - - - - 165�60 78.44 153.24 173�96 @ 803.68 736.30 0�09 0.09 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21�49 1.41 1.94 - - - - - - - - - ` crore Promoters Promoter Group - - - 0.01 20�00 - 199�00 199.00 199.00 36�50 36.50 36.50 12�38 2.19 15.47 - 0.55 0.97 - - - 0�02 3.99 9.33 - - 0�64 - - - - - - - - - 0�08 - - - - - - - - 2�00 - - - - - - - - - - - 7�70 5.45 9.46 - - - - - - - - - - - - 13�56 - 17.23 - - - - - - - - - - - - 12�93 - - - - - 16�71 35.80 - - - 31.62 0�05 0.05 77.47 1,428�15 2,182.64 1,841.15 2,873.82 2,657.63 2,296.95 Dividend receivable �� 2019 2018 2017 Guarantees, collaterals etc� outstanding �� 2019 2018 2017 Letter of comfort outstanding �� 2019 2018 2017 Other payables �� 2019 2018 2017 Loans taken (including interest thereon) �� 2019 2018 2017 All outstanding balances are unsecured� All transactions with the related parties have been done at arms length� The Group’s principal related parties consist of Tata Sons Private Limited, its subsidiaries and joint ventures, affiliates and key managerial personnel� The Group’s material related party transactions and outstanding balances are with related parties with whom the Group routinely enters into transactions in the ordinary course of business� Includes guarantees given and cancelled in foreign currency, converted in Indian currency by applying average exchange rates� On payment basis Includes loan classified as held for sale 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� - - - - - - - - - 31�11 36.00 23.51 - - - - - - - - - - - - 2�93 39.74 6.10 - - - # @ * $ Notes: 1. 2� 3. Consolidated Financials I 215 100th Annual Report 2018-19NOTICEBOARD’S REPORTMD & ACG REPORTBRRCONSOLIDATEDSTANDALONENotes to the Consolidated Financial Statements The Tata Power Company Limited Notes to the Consolidated Financial Statements 39. Financial Instruments 39.1 Fair values Set out below, is a comparison by class of the carrying amount and fair value of the financial instruments: Financial assets Cash and Cash Equivalents .......................................................... Other Balances with Banks .......................................................... Trade Receivables ............................................................................ Unbilled Revenues .......................................................................... Loans ................................................................................................... Finance Lease Receivables ........................................................... FVTPL Financial Investments # ................................................... FVTOCI Financial Investments # ................................................. Amortised Cost Financial Investments # ................................. Derivative Instruments not in hedging relationship .......... Other Financial Assets ................................................................... Asset classified as held for sale (Note No. 17) - Strategic Engineering Division (SED) .................................... - FVTOCI Financial Investments # (Refer Note below) ..... - Loans (including accrued interest) ....................................... Total ..................................................................................................... Financial liabilities Trade Payables .................................................................................. Fixed rate Borrowings (including Current Maturities)........ Floating rate Borrowings (including Current Maturities) .. Derivative Instruments not in hedging relationship........... Other Financial Liabilities ............................................................. Carrying value 31st March, 2019 645.45 142.00 4,638.25 837.85 261.19 603.52 126.32 485.67 416.40 24.76 533.58 31st March, 2018 1,061.16 124.62 2,978.98 810.09 916.53 609.03 428.43 487.35 401.49 111.59 563.68 1st April, 2017 835.22 119.08 4,020.04 1,081.92 814.89 612.63 1,010.18 980.56 386.18 37.97 538.60 31st March, 2019 Fair Value 31st March, 2018 645.45 142.00 4,638.25 837.85 261.19 603.52 126.32 485.67 423.27 24.76 533.58 1,061.16 124.62 2,978.98 810.09 916.53 609.03 428.43 487.35 405.05 111.59 563.68 ` crore 1st April, 2017 835.22 119.08 4,020.04 1,081.92 814.89 612.63 1,010.18 980.56 397.84 37.97 538.60 265.62 38.65 18.59 9,037.85 314.50 69.70 Nil 8,877.15 Nil 195.21 Nil 10,632.48 265.62 38.65 18.59 9,044.72 314.50 69.70 Nil 8,880.71 Nil 195.21 Nil 10,644.14 5,504.24 16,115.06 32,390.98 113.35 3,563.32 57,686.95 5,630.82 13,623.37 34,965.87 457.67 2,726.97 57,404.70 5,564.57 13,950.65 34,864.76 944.51 2,800.40 5,504.24 16,149.65 32,390.98 113.35 3,563.32 58,124.89 57,721.54 5,630.82 13,638.35 34,965.87 457.67 2,726.97 57,419.68 5,564.57 14,180.67 34,864.76 944.51 2,800.40 58,354.91 # other than investments accounted for Equity Method The management assessed that the fair value of cash and cash equivalents, other balances with bank, trade receivables, loans, finance lease receivables, unbilled revenues, trade payables, other financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values. Fair value of the quoted bonds, mutual funds, government securities are based on the price quotations near the reporting date. Fair value of the unquoted equity shares have been estimated using a Discounted Cash Flow (DCF) model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for those unquoted equity investments. The fair value of the remaining FVTOCI financial assets are derived from quoted market price in active markets. The Group enters into derivative financial instruments with various counterparties, principally banks and financial institutions with investment grade credit ratings. Interest rate swaps, foreign exchange forward and option contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying currency. All derivative contracts are fully collateralized, thereby, eliminating both counterparty and the Group’s own non-performance risk. As at 31st March, 2019, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The fair value of unquoted instruments, loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flow using rates currently available for debt on similar terms, credit risk and remaining maturities. - - - - 216 I Consolidated Financials 100th Annual Report 2018-19 39. Financial Instruments (Contd.) Notes to the Consolidated Financial Statements - 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. Reconciliation of Level 3 fair value measurement of unquoted equity shares (Refer Note below). Unlisted shares irrevocably designated as at FVTOCI Year ended 31st March, 2018 778.09 (381.01) 397.08 Year ended 31st March, 2019 397.08 0.63 397.71 ` crore Unlisted shares carried at FVTPL Year ended 31st March, 2019 0.15 0.01 0.16 Year ended 31st March, 2018 0.14 0.01 0.15 Opening balance ................................................ Total Gain or (Loss) ............................................. Closing balance ................................................. Notes: Certain unquoted investments 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, then reflecting changes in fair value immediately in profit or loss. 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”. The significant unobservable input used in the fair value measurement categorized within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March, 2019, 31st March, 2018 and 1st April, 2017 are as shown below: Description of significant unobservable inputs to valuation: Investments in unquoted equity shares Valuation techniques Price of recent transaction (PORT) Significant unobservable inputs Transaction price Range (weighted average) Varies on case to case basis Sensitivity of the input to fair value 5% (31st March, 2018: 5%; 1st April, 2017: 5%) increase (decrease) in the transaction price would result in increase (decrease) in fair value by ` 2.82 crore (31st March, 2018: ` 2.82 crore; 1st April, 2017: ` 2.82 crore) E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C The discount for lack of marketability represents the amount that the Group has determined that market participants would take into account when pricing the investments. R R B 39.2 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, quoted borrowings (fixed) and mutual funds that have quoted price. 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 unquoted borrowings (fixed and floating rate). 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. Level 2 Level 3 D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 217 Notes to the Consolidated Financial Statements 39. Financial Instruments (Contd.) The following table summarizes 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) : The Tata Power Company Limited Date of valuation Fair value hierarchy as at 31st March, 2019 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) ` crore Total Asset measured at fair value FVTPL Financial Investments ............................... 31st March, 2019 FVTOCI Financial Investments: - Quoted Equity Shares ......................................... 31st March, 2019 - Unquoted Equity Shares ................................... 31st March, 2019 Derivative instruments not in hedging relationship ................................................................ 31st March, 2019 Assets Classified as Held For Sale ...................... 31st March, 2019 Assets for which fair values are disclosed Investment in Government Securities ............. 31st March, 2019 Liabilities measured at fair value Derivative Financial Liabilities ............................ 31st March, 2019 Liabilities for which fair values are disclosed Fixed rate Borrowings .............................................. 31st March, 2019 Floating rate Borrowings ........................................ 31st March, 2019 Total ............................................................................... 126.16 87.96 Nil Nil 38.65 423.27 676.04 Nil Nil Nil 24.76 Nil Nil 24.76 0.16 126.32 Nil 397.71 87.96 397.71 Nil Nil 24.76 38.65 Nil 397.87 423.27 1,098.67 Nil 113.35 Nil 113.35 8,890.13 1,069.94 9,960.07 7,259.52 31,321.04 38,693.91 Nil Nil Nil 16,149.65 32,390.98 48,653.98 Date of valuation Fair value hierarchy as at 31st March, 2018 Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Total Asset measured at fair value FVTPL Financial Investments ................................. 31st March, 2018 FVTOCI Financial Investments: - Quoted Equity Shares ............................................ 31st March, 2018 - Unquoted Equity Shares ...................................... 31st March, 2018 Derivative instruments not in hedging relationship .................................................................. 31st March, 2018 Assets classified as held for sale ........................... Assets for which fair values are disclosed Investment in Government Securities............... 31st March, 2018 Liabilities measured at fair value Derivative Financial Liabilities............................... 31st March, 2018 Liabilities for which fair values are disclosed Fixed rate Borrowings .............................................. 31st March, 2018 Floating rate Borrowings ........................................ 31st March, 2018 Total ............................................................................... 428.28 90.27 Nil Nil 69.70 405.05 993.30 Nil Nil Nil 111.59 Nil Nil 111.59 0.15 428.43 Nil 397.08 90.27 397.08 Nil Nil 111.59 69.70 Nil 397.23 405.05 1,502.12 Nil 457.67 Nil 457.67 9,830.28 1,979.49 11,809.77 3,808.07 32,986.38 37,252.12 Nil Nil Nil 13,638.35 34,965.87 49,061.89 218 I Consolidated Financials 100th Annual Report 2018-19 39. Financial Instruments (Contd.) Notes to the Consolidated Financial Statements Date of valuation Fair value hierarchy as at 31st March, 2017 Quoted prices in active markets (Level 1) ` crore Significant observable inputs (Level 2) ` crore Significant unobservable inputs (Level 3) ` crore Total ` crore Asset measured at fair value FVTPL Financial Investments ................................. 1st April, 2017 FVTOCI Financial Investments: - Quoted Equity Shares ............................................ 1st April, 2017 - Unquoted Equity Shares ...................................... 1st April, 2017 Derivative instruments not in hedging relationship .................................................................. 1st April, 2017 Assets classified as held for sale ........................... 1st April, 2017 Assets for which fair values are disclosed 1st April, 2017 Investment in Government Securities ............... 1st April, 2017 for which Liabilities measured at fair value Derivative Financial Liabilities .............................. 1st April, 2017 Liabilities disclosed Fixed rate Borrowings .............................................. 1st April, 2017 Floating rate Borrowings ........................................ 1st April, 2017 Total ............................................................................... fair values are 1,010.04 202.47 Nil Nil 195.21 397.84 1,805.56 Nil Nil Nil 37.97 Nil Nil 37.97 0.14 1,010.18 Nil 778.09 202.47 778.09 Nil Nil 37.97 195.21 Nil 778.23 397.84 2,621.76 Nil 944.51 Nil 944.51 11,106.11 1,992.07 13,098.18 3,074.56 32,872.69 36,891.76 Nil Nil Nil 14,180.67 34,864.76 49,989.94 There has been no transfer between level 1 and level 2 during the period. 39.3 Capital Management & Gearing Ratio For the purpose of the Group’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Group. The primary objective of the Group’s capital management is to maximize the shareholder value. The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. From time to time, the Group reviews its policy related to dividend payment to shareholders, return capital to shareholders or fresh issue of shares. The Group monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The Group’s policy is to keep the gearing ratio between 60% and 80% at consolidated level. The Group includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations as detailed in the notes below. 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: 31st March, 2019 31st March, 2018 ` crore 1st April, 2017 Debt (i) .................................................................................................................. Less: Cash and Bank balances ...................................................................... Net debt .............................................................................................................. Total Capital (ii) .................................................................................................. Capital and net debt ..................................................................................... Net debt to Total Capital plus net debt ratio (%) .................................. (i) 49,707.56 941.68 48,765.88 14,422.49 63,188.37 77.18 Debt is defined as Non-current borrowings (including current maturities) and Current borrowings (excluding derivative, financial guarantee contracts and contingent considerations) and interest accrued on Non-current and Current borrowings. (ii) Equity is defined as Equity share capital, Unsecured perpetual securities and other equity including reserves and surplus. In order to achieve this overall objective, the Group’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. 49,131.63 769.57 48,362.06 18,221.16 66,583.22 72.63 49,396.99 1,172.21 48,224.78 16,399.88 64,624.66 74.62 Consolidated Financials I 219 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 39. Financial Instruments (Contd.) No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2019 and 31st March, 2018. 39.4 Financial risk management objectives and policies The Group’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, financial guarantee contracts and other financial liabilities. The main purpose of these financial liabilities is to finance the Group’s operations and to provide guarantees to support its operations. The Group’s principal financial assets include loans, trade and other receivables, cash and cash equivalents, other bank balances, unbilled receivables, finance lease receivables and other financial assets that derive directly from its operations. The Group also holds FVTOCI/FVTPL investments and enters into derivative transactions. The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by a risk committee that reviews the financial risks and the appropriate financial risk governance framework for the Group. The Group’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The risk management policy is approved by the board of directors, which is summarized below. 39.4.1 Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: currency risk, interest rate risk and equity price risk. The impact of equity price risk is not material. Financial instruments affected by market risk include loans and borrowings, derivative financial instruments and FVTOCI investments. The sensitivity analysis in the following sections relate to the position as at 31st March, 2019, 31st March, 2018 and 1st April, 2017. The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of hedge designations in place at 31st March, 2019. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities of foreign operations. a. Foreign currency risk management Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. 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. When a derivative is entered into for the purpose of being a hedge, the Group negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. The following table analyses foreign currency assets and liabilities on balance sheet dates: ` crore 31st March, 2018 Foreign Currency (in Million) 1,371.82 0.93 0.06 26.68 0.33 8,939.74 7.54 0.55 1.66 1.64 1st April, 2017 Foreign Currency (in Million) 1,770.54 8.04 3.63 26.83 0.45 ` crore 11,481.98 55.73 29.38 1.56 2.89 ` crore 31st March, 2019 Foreign Currency (in Million) 412.07 0.42 * 157.84 Nil 2,849.95 3.27 0.03 9.86 Nil Foreign Currency Liabilities In USD ..................................................... In EURO .................................................. In GBP ..................................................... In JPY ....................................................... In SGD ..................................................... 220 I Consolidated Financials 100th Annual Report 2018-19 39. Financial Instruments (Contd.) Notes to the Consolidated Financial Statements Foreign Currency Assets In USD ..................................................... In EURO .................................................. In GBP ..................................................... In ZAR ..................................................... In SGD ..................................................... In VND ..................................................... In AUD .................................................... In IDR ....................................................... In TAKA ................................................... Note: * Denotes figures below ` 50,000/- ` crore 31st March, 2019 Foreign Currency (in Million) 8.85 0.06 Nil 0.01 Nil Nil Nil Nil 0.20 61.19 0.46 Nil 0.01 Nil Nil Nil Nil 0.02 ` crore 31st March, 2018 Foreign Currency (in Million) 25.19 0.10 0.06 186.89 0.34 Nil 0.35 Nil 0.21 164.20 0.79 0.53 106.79 1.70 Nil 1.79 Nil 0.02 1st April, 2017 Foreign Currency (in Million) 4.52 0.17 0.06 187.69 0.63 77.48 0.26 0.03 0.21 ` crore 29.33 1.17 0.46 90.65 4.03 0.01 1.71 0.18 0.02 (i) Foreign currency sensitivity analysis The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Group’s profit before tax and impact on equity is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency forward and option contracts given as under. As of 31st March, 2019 .................. Rupee depreciate by ` 1 against USD Rupee appreciate by ` 1 against USD As of 31st March, 2018 .................... Rupee depreciate by ` 1 against USD Rupee appreciate by ` 1 against USD As of 1st April, 2017 .......................... Rupee depreciate by ` 1 against USD Rupee appreciate by ` 1 against USD Notes: ` crore Effect on profit before tax and consequential impact on equity (-) ₹ 1.09 (+) ₹ 0.61 (-) ` 59.18 (+) ` 59.32 (-) ` 70.02 (+) ` 69.64 1) 2) +/- Gain/Loss The impact of depreciation/ appreciation on foreign currency other than U.S. Dollar on profit before tax of the Group is not material. (ii) 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. Consolidated Financials I 221 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 39. Financial Instruments (Contd.) Notes to the Consolidated Financial Statements The following table gives details in respect of outstanding foreign exchange forward and option contracts: Outstanding Contracts The Tata Power Company Limited Other Derivatives Forward contracts Buy/ Sell 31st March, 2019 Foreign Currency Nominal Value in ` crore (in millions) Fair Value in ` crore In USD ........................................ In EURO ..................................... In GBP ......................................... In YEN ......................................... Option contracts In USD ........................................ Buy Buy Buy Buy Buy 336.26 0.08 Nil 5.16 119.82 2,325.60 0.62 Nil 0.32 828.69 (84.12) * Nil * (14.14) Other Derivatives Forward contracts Buy/ Sell 31st March, 2018 Foreign Currency Nominal Value in ` crore (in millions) Fair Value in ` crore In USD ........................................ Option contracts In USD ........................................ Buy Buy 844.29 707.80 5,508.52 4,613.26 (134.33) 9.62 Other Derivatives Forward contracts In USD ........................................ In EURO ..................................... In GBP ......................................... Option contracts In USD ........................................ Buy Buy Buy Buy Note: Fair Value in brackets denotes liability. *Denotes figures below 50,000/- 1st April, 2017 Foreign Currency Nominal Value in ` crore (in millions) Fair Value in ` crore 1,172.65 6.81 3.25 420.90 7,604.66 47.18 26.27 2,729.54 (393.58) (1.10) (0.40) (47.68) b. Interest rate risk management Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt obligations with floating interest rates. The Group manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Group’s policy is to keep upto 50% of its borrowings at fixed rates of interest. To manage this, the Group enters into fixed rate loan, Bonds and interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. (i) 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 Group’s profit in that financial year would have been as below: Interest expense on loan ............................................. Effect on profit before tax ........................................... As of 31st March, 2019 50 bps increase 50 bps decrease (-) ₹ 168.39 (+) ₹ 168.39 (+) ₹ 168.39 (-) ₹ 168.39 As of 31st March, 2018 50 bps increase (+) ₹ 174.58 (-) ₹ 174.58 50 bps decrease (-) ₹ 174.58 (+) ₹ 174.58 ` crore 222 I Consolidated Financials 100th Annual Report 2018-19 39. Financial Instruments (Contd.) Notes to the Consolidated Financial Statements (ii) 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: 31st March, 2019 31st March, 2018 1st April, 2017 Nominal amounts Fair value assets (liabilities) Nominal amounts Fair value assets (liabilities) Nominal amounts Fair value assets (liabilities) Less than 1 year 276.64 1.38 3,523.76 52.18 4,101.76 17.06 1 to 5 years 2,593.55 8.29 1,512.05 (12.04) 2,432.36 (51.18) 39.4.2 Credit risk management ` crore 5 years + Nil Nil 3,660.83 (261.51) 4,086.14 (429.66) Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including loans, foreign exchange transactions and other financial instruments. Trade Receivables ............................................................................................. Loans ..................................................................................................................... Finance Lease Receivables ............................................................................ Other Financial Assets (including derivatives contracts) ................... Held for Sale Financial Assets ....................................................................... Unbilled Revenue ............................................................................................. Total ...................................................................................................................... 31st March, 2019 4,638.25 261.19 603.52 558.34 322.86 837.85 7,222.01 31st March, 2018 2,978.98 916.53 609.03 675.27 384.20 810.09 6,374.10 ` crore 1st April, 2017 4,020.04 814.89 612.63 576.57 195.21 1,081.92 7,301.26 Refer note 7 for 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 Group believes exposure to credit risk to be minimal. The Group has not acquired any credit impaired asset. 39.4.3 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 has access to a sufficient variety of sources of funding. Having regards to the nature of the business wherein the Group is able to generate fixed cash flows over a period of time and to optimize the cost of funding, the Group, from time to time, funds its long -term investment from short-term sources. The short-term borrowings can be rollforward or, if required, can be refinanced from long term borrowings. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 223 Notes to the Consolidated Financial Statements 39. Financial Instruments (Contd.) The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments: The Tata Power Company Limited 31st March, 2019 Non-Derivatives Borrowings # ................................................... Trade Payables ................................................ Other Financial Liabilities ........................... Total Non-Derivative Liabilities ........... Derivatives Other Financial Liabilities ........................... Total Derivative Liabilities ...................... 31st March, 2018 Non-Derivatives Borrowings # ................................................... Trade Payables ................................................ Other Financial Liabilities ........................... Total Non-Derivative Liabilities ........... Derivatives Other Financial Liabilities ........................... Total Derivative Liabilities ...................... 1st April, 2017 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 ` crore Total Carrying Amount 20,515.40 5,481.49 2,250.42 28,247.31 23,357.51 22.75 61.93 23,442.19 24,175.16 Nil 625.38 24,800.54 68,048.07 5,504.24 2,937.73 76,490.04 49,131.63 5,504.24 2,937.73 57,573.60 113.35 113.35 Nil Nil Nil Nil 113.35 113.35 113.35 113.35 20,983.72 5,609.82 1,271.91 23,726.67 21.00 144.80 26,371.09 Nil 502.51 71,081.48 5,630.82 1,919.22 49,396.99 5,630.82 1,919.22 27,865.45 23,892.47 26,873.60 78,631.52 56,947.03 457.67 457.67 Nil Nil Nil Nil 457.67 457.67 457.67 457.67 17,343.21 5,529.00 1,357.31 24,229.52 944.51 944.51 24,250.76 35.57 48.43 24,334.76 28,590.49 Nil 502.51 29,093.00 70,184.46 5,564.57 1,908.25 77,657.28 Nil Nil Nil Nil 944.51 944.51 49,707.56 5,564.57 1,908.25 57,180.38 944.51 944.51 # 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 obligation from operating cash flows and proceeds of maturing financial assets. Till last year, in respect of borrowings availed by the Group for its project at Mundra, one of the subsidiaries was not in compliance with the financial covenants for INR Term Loans and as a result, entire loan balance was classified as “Current Borrowings” in consolidated financial statements. During the current year, State Bank of India (Lead Banker) has granted waiver and amended the financial covenants, which the subsidiary now is in compliance with. Accordingly, the loans outstanding as at 31st March, 2019 aggregating to ₹ 3,687.55 crore have been re-classified as “Non-current borrowings” and ₹ 76.78 crore of current maturities pertaining to these loan balances have been classified under “Current Maturities of Non- current Borrowings”. 40. 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 Group’s reportable segments under Ind AS are as follows: Power : Comprises of Generation, Transmission, Distribution and Trading of Power and relative activities. Others: Comprises of Project Contracts/Infrastructure Management Services and Property Development. 224 I Consolidated Financials 100th Annual Report 2018-19 40. Segment Reporting (Contd.) Notes to the Consolidated Financial Statements 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. Power 27,935.87 24,882.65 4,144.38 3,615.01 Others Discontinued Operations * Inter Segment Total 3,545.45 3,124.54 93.01 175.32 143.59 286.74 (1,988.61) (1,576.77) - - REVENUE External Revenue ......................................................................................... RESULT Total Segment Results ................................................................... Finance Costs .................................................................................... Exceptional Item - Power Business............................................ Exceptional Item - Unallocable................................................... Unallocable Income net of Unallocable Expense ................ Share of Profit of Associates and Joint Ventures accounted for using the Equity Method ................................. Profit Before Tax - Continuing Operations ....................... Profit Before Tax - Discontinued Operations * ............... OTHER INFORMATION Segment Assets ................................................................................ Unallocable Assets .......................................................................... Assets Classified as Held For Sale * ........................................... Total Assets .................................................................................................. Segment Liabilities ......................................................................... Unallocable Liabilities .................................................................... Liabilities directly associated with Assets Classified as Held For Sale * .................................................................................. Total Liabilities ........................................................................................... 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 62,882.66 61,103.66 61,342.70 1,572.45 1,811.68 4,116.79 9,330.20 10,420.25 10,509.72 1,472.05 1,222.44 1,465.82 - - - - - - E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 29,636.30 26,717.16 4,237.39 3,790.33 (4,170.00) (3,761.48) (151.41) (460.51) 1,897.24 1,563.04 122.10 159.27 1,287.02 1,553.91 3,222.34 2,844.56 (191.82) (85.87) 64,455.11 62,915.34 65,459.49 17,642.62 17,029.44 15,708.08 2,064.30 2,065.19 - 84,162.03 82,009.97 81,167.57 10,802.25 11,642.69 11,975.54 52,005.69 51,074.55 52,900.55 966.27 877.56 - 63,774.21 63,594.80 64,876.09 3,576.22 3,550.34 114.15 27.22 2,393.13 2,346.17 - - - - - - - - - - - - Capital Expenditure .................................................................................... Non-cash Expenses other than Depreciation/Amortisation (to the extent allocable to segment) .......................................................... Depreciation/Amortisation (to the extent allocable to segment) 3,449.34 3,222.13 69.32 7.57 2,301.90 2,259.84 39.55 95.07 44.83 19.65 91.23 86.33 87.33 233.14 - - - - Consolidated Financials I 225 Notes to the Consolidated Financial Statements 40. Segment Reporting (Contd.) RECONCILIATION OF REVENUE The Tata Power Company Limited Power Others Total Continuing Operations Discontinued Operations * Inter Segment ` crore Total 28,001.80 25,292.50 (340.19) (409.85) 3,545.45 3,124.54 - - 29,558.64 26,840.27 (340.19) (409.85) 143.59 286.74 - - (1,988.61) (1,576.77) - - 29,702.23 27,127.01 (340.19) (409.85) 274.26 - 27,935.87 24,882.65 - - 3,545.45 3,124.54 274.26 - 29,492.71 26,430.42 - 143.59 286.74 - - (1,988.61) (1,576.77) 274.26 - 29,636.30 26,717.16 REVENUE Revenue from Operations ..................................................... Add/(Less): Regulatory Deferral Balances (net) .............. Add/(Less): Regulatory Deferral Balances (net) in respect of earlier years ..................................... Total Segment Revenue as reported above.................................. * Refer Note 17 c. Notes: 1. 2 3. Comparative figures for Statement of Profit and Loss items are for the year ended 31st March, 2018 and Balance Sheet items are as on 31st March, 2018 and 1st April, 2017. Revenue from a DISCOM on sale of electricity with which the Group has entered into a Power Purchase Agreement accounts for more than 10% of Total Revenue. Previous period/year’s figures are in italics which are restated. Reconciliation of Assets and Liabilities Segment Operating Assets .......................................................... [A] Unallocable Assets Non-current Investments ................................................................... Deferred Tax Assets (Net) .................................................................... Other Loans and Advances to Related Parties ............................ Advance Tax ............................................................................................. Loans to Employees .............................................................................. Current Investments ............................................................................ Fixed Deposit with Banks ................................................................... Assets Classified as Held For Sale other than Discontinued Operations ............................................................................................... Other Unallocable Assets ................................................................... Total Unallocable Assets ................................................................[B] Add: Assets of Discontinued Operations ................................. [C] Total Assets .................................................................[A] + [B] + [C] Segment Operating Liabilities .................................................... [A] Unallocable Liabilities Non-current Borrowings .................................................................... Current Maturities of Long-term Debt........................................... Deferred Tax Liabilities (Net) ............................................................. Unpaid Dividend ................................................................................... Dividend Tax on Preference Shares ................................................. Short-term Borrowings ...................................................................... Fair Value of Foreign Exchange Forward and Option Contracts .................................................................................................. Interest accrued but not due on Borrowings .............................. Advance Received for Sale of Investments .................................. Contingent Consideration Payable (Fair Value through Profit and Loss) ................................................................................................... As at 31st March, 2019 ` crore 64,455.11 As at 31st March, 2018 # ` crore 62,915.34 As at 31st March, 2017 ` crore 65,459.49 12,851.10 89.49 152.88 240.68 6.67 166.98 453.90 3,477.82 203.10 17,642.62 2,064.30 84,162.03 10,802.25 31,130.73 3,469.31 1,056.81 22.17 Nil 13,875.38 113.35 625.59 1,099.62 42.57 11,992.77 118.17 789.05 182.36 8.10 436.16 250.72 2,713.51 538.60 17,029.44 2,065.19 82,009.97 11,642.69 22,339.31 7,391.17 516.56 17.85 12.33 18,827.28 457.67 807.75 271.19 55.71 10,775.23 124.12 724.32 178.03 8.28 1,097.78 468.37 1,919.47 412.48 15,708.08 - 81,167.57 11,975.54 25,114.51 7,377.31 1,751.14 16.53 12.21 16,279.79 944.51 892.15 Nil Nil 226 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 40. Segment Reporting (Contd.) Reconciliation of Assets and Liabilities Other Unallocable Liabilities ............................................................. Total Unallocable Liabilities ..........................................................[B] Add: Liabilities directly associated with Assets Classified as Held For Sale............................................................................ [C] Total Liabilities ..........................................................[A] + [B] + [C] Reconciliation of Profit As at 31st March, 2019 ` crore 570.16 52,005.69 As at 31st March, 2018 # ` crore 377.73 51,074.55 As at 31st March, 2017 ` crore 512.40 52,900.55 966.27 63,774.21 877.56 63,594.80 - 64,876.09 Segment Profit...............................................................................................................................[A] Unallocable Income/(Expense): Other Income ....................................................................................................................................... Employee Benefit Expenses............................................................................................................ Depreciation and Amortisation .................................................................................................... Other Expenses ................................................................................................................................. Total .................................................................................................................................................. [B] (Less): Finance Cost .......................................................................................................................[C] Add: Share of Net Profit of Associates and Joint Ventures accounted for using the Equity Method .....................................................................................................................[D] Add/(Less): Exceptional Items ......................................................................................................... Reversal of Impairment of Mundra CGU (Net) - Power Business....................................... Impairment for Investments in Joint Venture and Related Obligation - Unallocable Impairment in respect of Other Property, Plant and Equipment and Goodwill - Power Business................................................................................................................................... Provision for Contingencies - Power Business......................................................................... Gain on Sale of Investment in Associates - Unallocable....................................................... Damages towards contractual obligations - Unallocable.................................................... Total .................................................................................................................................................. [E] Profit/(Loss) Before Tax from Continuing Operations ........... [A] + [B] + [C] + [D] + [E] Profit/(Loss) Before Tax from Discontinued Operations ...................................................... Total Profit Before Taxes ............................................................................................................... Add/(Less): Tax Expense from Continuing Operations .......................................................... Add/(Less): Tax Expense from Discontinued Operations ...................................................... Total Profit/(Loss) for the year ................................................................................................... # Restated Geographical Information For the year ended 31st March, 2019 ` crore 4,237.39 For the year ended 31st March, 2018 # ` crore 3,790.33 395.83 (20.49) (0.06) (253.18) 122.10 (4,170.00) 1,287.02 Nil Nil (106.41) (45.00) 1,897.24 Nil 1,745.83 3,222.34 (191.82) 3,030.52 (656.09) 65.98 2,440.41 432.69 (14.91) (0.02) (258.49) 159.27 (3,761.48) 1,553.91 1,886.72 (527.54) (149.57) Nil Nil (107.08) 1,102.53 2,844.56 (85.87) 2,758.69 (161.97) 14.13 2,610.85 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 Geographical Segment Revenue from External Customers ........................................... Segment Assets: Non Current Assets ............................................................ Current Assets ...................................................................... 2019 2018 2019 2018 2017 2019 Domestic 29,032.52 26,289.34 48,244.83 47,716.95 48,848.71 9,053.03 Overseas 603.78 427.82 1,236.90 1,225.99 1,283.55 162.22 ` crore Total 29,636.30 26,717.16 49,481.73 48,942.94 50,132.26 9,215.25 Consolidated Financials I 227 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements The Tata Power Company Limited 40. Segment Reporting (Contd.) Geographical Segment Regulatory Deferral Account - Assets .......................... Unallocable Assets ............................................................. Total Assets ...................................................................................... 2018 2017 2019 2018 2017 2019 2018 2017 2019 2018 2017 Domestic 7,412.35 8,109.22 5,758.13 6,304.56 7,117.70 Overseas 255.49 100.31 Nil Nil Nil Capital Expenditure ........................................................................ 3,576.00 3,550.28 0.22 0.06 Note: Previous period/year’s figures are in italics which are restated. 41. Significant Events after the Reporting Period ` crore Total 7,667.84 8,209.53 5,758.13 6,304.56 7,117.70 19,706.92 19,094.63 15,708.08 84,162.03 82,009.97 81,167.57 3,576.22 3,550.34 There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant notes. 42. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling Interests Name of the Entity Net Assets i.e. total assets minus total liabilities Amount As % of (` crore) consolidated net assets Total Income i.e. Revenue Plus Other Income Amount (` crore) As % of consolidated total income Share of Profit or (loss) As % of consolidated profit Amount (` crore) Share in Other Comprehensive Income Amount (` crore) Share in Total Comprehensive Income Amount (` crore) 34.62 15,689.60 24.41 8,348.00 63.65 1,708.58 0.12 0.61 0.42 4.58 10.74 7.01 - - 11.19 1.04 0.05 - 0.13 - - - - (0.03) 0.01 (0.02) 55.84 275.34 191.96 2,080.61 4,874.93 3,182.64 (1.50) (0.01) 5,078.52 473.83 21.24 (0.05) 59.58 - (0.01) 0.03 (0.01) (13.30) 6.45 (7.38) 0.57 0.04 0.77 8.30 20.85 23.05 - - 2.34 9.34 0.03 - 0.11 - - - - 0.06 1.11 0.13 195.29 14.53 264.55 2,841.10 7,136.87 7,886.93 - - 801.99 3,197.86 11.74 - 37.41 - - - - 21.93 381.50 45.00 0.83 0.48 1.37 10.16 (61.57) 12.51 22.29 13.01 36.90 272.90 (1,653.72) 335.94 - - 3.44 3.37 0.21 - 0.17 - - - - (0.30) 0.01 (0.06) (0.01) * 92.53 90.44 5.65 * 4.52 - * * * (8.04) 0.40 (1.74) As % of consolidated Other comprehensive income (15.97) As % of consolidated Total comprehensive income 56.11 (44.64) (0.21) 6.79 (0.15) (0.31) 0.73 (0.48) - - 0.36 (3.12) - - - - - - - - (0.23) - (0.07) 2.42 (0.05) (0.11) 0.26 (0.17) - - 0.13 (1.11) - - - - - - - - (0.08) - 1,663.94 0.74 0.67 1.24 9.19 (55.73) 11.31 22.08 19.80 36.75 272.59 (1,652.99) 335.46 - - 3.13 2.94 0.19 - 0.15 - - - - (0.27) 0.01 (0.06) (0.01) * 92.89 87.32 5.65 * 4.52 - * * * (8.04) 0.17 (1.74) 4.67 2,118.75 3.79 1,295.78 11.17 300.10 0.15 0.43 10.13 300.53 Tata Power Company Ltd. # ...................... Indian Subsidiaries Nelco Ltd. (Consolidated) 1 ......................... 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. ....................... Tata Power Renewable Energy Ltd. ......... Tata Power Solar Systems Ltd.................... 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. ................................. TP Ajmer Distribution Ltd. .......................... Chirasthaayee Saurya Ltd. .......................... Walwhan Renewable Energy Ltd. (Consolidated) 2 .............................................. 228 I Consolidated Financials 100th Annual Report 2018-19 42. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling Interests (Contd.) Notes to the Consolidated Financial Statements Name of the Entity Foreign Subsidiaries Bhira Investments Pte. Ltd. (Formerly known as Bhira Investment 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............. Far Eastern Natural Resources LLC .......... Indian Associates Nelito Systems Ltd. ....................................... Panatone Finvest Ltd. .................................. Yashmun Engineers Ltd............................... Tata Communication Ltd. ........................... Tata Projects Ltd. ............................................ Foreign Associates Dagachhu Hydro Power Corporation Ltd. ...................................................................... Indian Jointly Control 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 Control Entities Cennergi Pty. Ltd. (Consolidated)3........... PT Mitratama Perkasa (Consolidated)4... 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)5 ............................................... PT Baramulti Sukessarana Tbk (Consolidated) 6 .............................................. Adjaristsqali Netherlands BV (Consolidated) 7 .............................................. Koromkheti Netherlands BV (Consolidated)8 ............................................... Itezhi Tezhi Power Corporation ................ Resurgent Power Ventures Pte. Ltd. consolidated.................................................... Indocoal KPC Resources (Cayman) Ltd. . Net Assets i.e. total assets minus total liabilities Amount As % of (` crore) consolidated net assets Total Income i.e. Revenue Plus Other Income Amount (` crore) As % of consolidated total income Share of Profit or (loss) As % of consolidated profit Amount (` crore) Share in Other Comprehensive Income Amount (` crore) As % of consolidated Other comprehensive income Share in Total Comprehensive Income Amount (` crore) As % of consolidated Total comprehensive income 1.17 1.99 0.87 2.77 0.11 0.02 0.04 (0.02) 0.03 - 0.01 - 1.13 532.88 904.66 396.67 1,258.72 50.49 10.59 19.54 (6.99) 12.93 - 3.19 - 513.44 0.20 91.57 1.03 1.25 0.05 - (0.13) - - - - 0.26 1.79 1.55 3.35 1.54 - - 0.10 2.66 - 0.56 0.40 0.60 0.76 (0.06) 0.82 465.81 567.32 23.64 - (57.19) (0.01) - (0.03) - 119.74 814.37 705.74 1,522.75 698.63 (0.03) 0.39 47.15 1,205.90 0.19 253.16 181.85 274.17 345.69 (26.16) 373.36 0.04 - 0.38 2.57 1.26 - 0.81 0.04 12.83 - 128.96 880.45 430.41 - 276.19 14.62 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (7.67) (1.66) 3.64 5.76 0.50 - 6.36 (0.27) (205.90) (44.48) 97.72 154.80 13.47 - 170.79 (7.13) - - - - - - - * - - 15.92 19.67 5.80 23.16 0.71 - (3.71) 0.05 44.59 55.11 16.25 64.89 2.00 - (10.40) 0.13 - - - - - - - - - - (5.44) 0.36 3.84 7.41 0.52 - 5.41 (0.24) (161.31) 10.63 113.97 219.69 15.47 - 160.39 (7.00) - - - - - - - * - - (0.24) (6.53) 0.01 0.02 (0.22) (6.51) 2.14 3.06 - - - - - - - 1.60 - - 27.49 0.19 - - 0.25 7.06 - 0.28 57.50 82.22 (0.06) - - - - - - 42.85 - - 738.48 5.15 * * 6.80 189.60 * 7.58 (0.05) (0.07) - - - - - - - (4.35) 9.70 6.29 (4.24) 6.32 0.01 0.01 0.22 20.23 - 5.02 (0.15) (0.19) - - - - - - - (12.20) 27.18 17.63 (11.89) 17.70 0.02 0.02 0.63 56.66 - 14.07 1.93 2.77 - - - - - - - 1.03 0.92 0.59 24.50 0.77 - - 0.25 8.30 - 0.73 57.35 82.03 (0.06) - - - - - - 30.65 27.18 17.63 726.59 22.85 0.02 0.02 7.43 246.26 * 21.65 (0.10) (2.56) 3.69 10.33 0.26 7.77 3.42 91.94 2.43 6.80 3.33 98.74 - - 3.32 - (3.91) (10.95) (0.37) (10.95) - 89.05 0.38 11.53 1.06 32.29 0.04 4.09 1.06 121.34 0.01 - 100.00 5.02 0.73 45,396.94 - - 100.00 - - 34,223.94 (0.58) 0.01 100.00 (15.45) 0.40 2,685.99 (0.23) 0.01 100.00 (0.65) 0.02 280.14 (0.54) 0.01 100.00 (16.10) 0.42 2,966.13 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Consolidated Financials I 229 The Tata Power Company Limited 42. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling Interests (Contd.) Notes to the Consolidated Financial Statements Name of the Entity 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. ............................... Walwhan Renewable Energy Ltd. (Consolidated)2 ...................... Vagarai Windfarm Ltd. ................. Foreign Subsidiaries PT Sumber Energi Andalan Tbk. ..................................................... Foreign Jointly Control Entities PT Mitratama Perkasa (Consolidated) 4 .............................. Total ................................................................... Consolidated Net Assets / Profit after tax ........................................................... Net Assets i.e. total assets minus total liabilities Amount As % of (` crore) consolidated net assets Total Income i.e. Revenue Plus Other Income Amount (` crore) As % of consolidated total income Share of Profit or (loss) As % of consolidated profit Amount (` crore) Share in Other Comprehensive Income Amount (` crore) As % of consolidated Other comprehensive income Share in Total Comprehensive Income Amount (` crore) As % of consolidated Total comprehensive income (22,842.42) (4,191.81) (27.20) (540.52) (1,559.47) (10.41) - - (0.43) (28.67) (2,166.70) (245.58) (11.14) (70.95) (164.61) (2.77) - - - - (249.47) (115.70) 0.11 0.08 0.24 - - - - - 0.43 (361.28) (11.03) (70.87) (164.37) (2.77) - - - - - (249.04) 20,387.82 30,032.13 2,190.94 164.87 2,355.81 Reconciliation of Total Income (i.e Revenue plus other income) Total Income as per Statement of Profit & Loss ........................................ Regulatory Deferral Balances .......................................................................... Add: Revenue from Discontinued Operations .......................................... Total Income as per the above statement ............................................ Note: 29,954.47 (65.93) 29,888.54 143.59 30,032.13 1. Accounts of Tatanet Services Ltd. have been consolidated with Nelco Ltd. 2. Accounts of all subsidaries of Walwhan Renewable Energy Ltd. [Refer Note 2.5] have been consolidated with Walwhan Renewable Energy Ltd. 3. Accounts of Amakhala Emoyeni RE Project 1 (Pty) Ltd. and Tsitsikamma Community Wind Farm (Pty) Ltd. have been consolidated with Cennergi Pty. Ltd. 4. Accounts of PT Mitratama Usaha have been consolidated with PT Mitratama Perkasa. 5. Accounts of PT Citra Prima Buana, PT Guruh Agung and PT Citra Kusuma Perdana have been consolidated with PT Kalimantan Prima Power. 6. Accounts of PT Antang Gunung Meratus have been consolidated with PT Baramulti Sukessarana Tbk. 7. Accounts of Adjaristsqali Georgia LLC have been consolidated with Adjaristsqali Netherlands BV. 8. Accounts of Koromkheti Georgia LLC have been consolidated with Koromkheti Netherlands BV. 9. Chemical Terminal Trombay Ltd. is merged with The Tata Power Company Limited during the year. # Includes Discontinued Operations * denotes figures below ` 50,000/- Summarised Financial Information of Material Non Controlling Interests Financial Information of Subsidiaries that have material non-controlling interest is provided below: Proportion of equity interest held by non-controlling interests: Name Maithon Power Ltd. .......................................................................... Tata Power Delhi Distribution Ltd. ............................................... Country of Incorporation India India 31st March, 2019 26% 49% 31st March, 2018 26% 49% 1st April, 2017 26% 49% 230 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 42. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling Interests (Contd.) A Maithon Power Limited (i) Summarised balance sheet: Non-current Assets .................................................................. Current Assets ............................................................................ Non-current Liabilities ............................................................ Current Liabilities ..................................................................... Attributable to: Equity holders of parent ................................................... Non-controlling interest ................................................... (ii) Summarised statement of profit and loss: As at 31st March, 2019 ` crore 3,812.79 1,047.49 (1,805.34) (974.33) 2,080.61 As at 31st March, 2018 ` crore 3,913.06 774.35 (1,980.71) (723.68) 1,983.02 As at 1st April, 2017 ` crore 4,070.65 930.07 (2,161.95) (958.27) 1,880.50 1,540.09 540.52 1,467.90 515.12 1,391.57 488.93 Revenue .................................................................................................................................. Other Income ........................................................................................................................ Cost of Power Purchased .................................................................................................. Cost of Fuel ............................................................................................................................ Employee Benefits Expenses ........................................................................................... Finance Cost .......................................................................................................................... Depreciation and Amortisation Expenses .................................................................. Other Expenses .................................................................................................................... Profit before tax ................................................................................................................. Tax Expenses ......................................................................................................................... Profit for the year .............................................................................................................. Other Comprehensive Income/(Expense) for the year Total Comprehensive Income for the year ............................................................ Attributable to: Equity holders of parent .................................................................................................. Non-controlling interest .................................................................................................. Dividend including Dividend Distribution Tax Attributable to: Equity holders of parent .................................................................................................. Non-controlling interest .................................................................................................. (iii) Summarised cash flow information: Operating Activities ........................................................................................................... Investing Activities ............................................................................................................. Financing Activities ........................................................................................................... Net (Decrease) / Increase in Cash and Cash Equivalents ................................ For the year ended 31st March, 2019 ` crore 2,776.05 65.05 (1.40) (1,769.85) (41.18) (204.85) (238.24) (226.86) 358.72 (85.82) 2 72.90 (0.32) 272.58 For the year ended 31st March, 2018 ` crore 2,270.41 18.78 (2.04) (1,350.45) (43.75) (204.06) (237.40) (229.11) 222.38 (40.69) 181.69 (0.05) 181.64 201.71 70.87 129.50 45.50 134.42 47.22 58.55 17.28 For the year ended 31st March, 2019 ` crore (2.74) (23.97) (23.28) (49.99) For the year ended 31st March, 2018 ` crore 500.02 208.65 (658.59) 50.08 Consolidated Financials I 231 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 42. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling Interests (Contd.) B Tata Power Delhi Distribution Ltd. (i) Summarised balance sheet: Non-current Assets .................................................................. Current Assets ............................................................................ Assets classified as held for sale .......................................... Regulatory Deferral Account Debit Balances ................. Non-current Liabilities ............................................................ Current Liabilities ..................................................................... Attributable to: Equity holders of parent ..................................................... Non-controlling interest ..................................................... (ii) Summarised statement of profit and loss: As at 31st March, 2019 ` crore 4,161.12 946.71 20.04 4,578.69 (3,992.41) (2,531.51) 3,182.64 As at 31st March, 2018 ` crore 4,016.22 1,189.60 Nil 4,399.85 (4,140.92) (2,511.11) 2,953.64 As at 1st April, 2017 ` crore 3,803.49 839.29 Nil 4,573.70 (4,167.60) (2,361.45) 2,687.43 1,623.17 1,559.47 1,506.36 1,447.28 1,370.59 1,316.84 Revenue including Regulatory income/(expense) .............................................. Other Income ..................................................................................................................... Cost of Power Purchased ............................................................................................... Employee Benefits Expenses ........................................................................................ Finance Cost ....................................................................................................................... Depreciation and Amortisation Expenses ............................................................... Other Expenses ................................................................................................................. Exceptional Items ............................................................................................................. Profit before tax ................................................................................................................. Tax Expenses ...................................................................................................................... Profit for the year .............................................................................................................. Other Comprehensive Income/(Expense) for the year ....................................... Total Comprehensive Income for the year ............................................................ Attributable to: Equity holders of parent ................................................................................................. Non-controlling interest ................................................................................................. Dividend including Dividend Distribution Tax Attributable to: Equity holders of parent ............................................................................................... Non-controlling interest ............................................................................................... (iii) Summarised cash flow information: Operating Activities .............................................................................................................. Investing Activities ................................................................................................................ Financing Activities .............................................................................................................. Net (Decrease) / Increase in Cash and Cash Equivalents .................................. For the year ended 31st March, 2019 ` crore 8,556.72 108.02 (6,674.67) (469.70) (348.88) (309.64) (318.94) (106.40) 436.51 (100.57) 335.94 (0.48) 335.46 For the year ended 31st March, 2018 ` crore 7,516.85 64.90 (5,718.09) (473.56) (346.73) (289.95) (315.45) (37.57) 400.40 (94.52) 305.88 0.20 306.08 171.09 164.37 54.30 52.17 156.10 149.98 20.33 16.23 As at 31st March, 2019 ` crore 1,055.05 (597.21) (535.56) (77.72) As at 31st March, 2018 ` crore 923.41 (544.80) (376.63) 1.98 232 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 43. Restated Consolidated Financial Statements for the year ended 31st March, 2018 and as at 1st April, 2017 Consolidated Balance Sheet as at 31st March, 2018 Note Reported Amount As at 31st March, 2018 Restatements Restated Amount As at 31st March, 2018 ` crore ` crore ` crore ASSETS Non-current Assets (a) Property, Plant and Equipment .......................................................................... (b) Capital Work-in-Progress ...................................................................................... (c) Goodwill ..................................................................................................................... (d) Other Intangible Assets......................................................................................... Investments accounted for using the Equity Method ............................... (e) Financial Assets (f ) (i) (ii) (iii) (iv) (v) Other Investments ...................................................................................... Trade Receivables ........................................................................................ Loans ................................................................................................................ Finance Lease Receivables ....................................................................... Other Financial Assets ............................................................................... (g) Non-current Tax Assets (Net) ............................................................................... (h) Deferred Tax Assets (Net) ...................................................................................... (i) Other Non-current Assets .................................................................................... Total Non-current Assets Current Assets (a) (b) Financial Assets Inventories ................................................................................................................. Investments ................................................................................................... (i) Trade Receivables ........................................................................................ (ii) Unbilled Revenue ........................................................................................ (iii) Cash and Cash Equivalents ...................................................................... (iv) Bank Balances other than (iv) above .................................................... (v) Loans ................................................................................................................ (vi) (vii) Finance lease receivables ......................................................................... (viii) Other financial assets ................................................................................. (c) Current Tax Assets (Net) ........................................................................................ (d) Other Current Assets .............................................................................................. Total Current Assets Assets Classified as Held For Sale ................................................................................ Total Assets before Regulatory Deferral Account ........................................... Regulatory Deferral Account - Assets ........................................................................ TOTAL ASSETS ............................................................................................................................. EQUITY AND LIABILITIES Equity (a) Equity Share Capital ............................................................................................... (b) Unsecured Perpetual Securities ......................................................................... (c) Other Equity .............................................................................................................. Equity attributable to Shareholders of the Company ................................... Non-controlling Interests............................................................................................ Total Equity ........................................................................................................................ LIABILITIES Non-current Liabilities (a) Financial Liabilities Borrowings..................................................................................................... (i) (ii) Trade Payables .............................................................................................. (iii) Other Financial Liabilities ......................................................................... (b) Non-current Tax Liabilities (Net) ........................................................................ (c) Deferred Tax Liabilities (Net) ............................................................................... (d) Provisions ................................................................................................................... (e) Other Non-current Liabilities .............................................................................. Total Non-current Liabilities Current Liabilities (a) Financial Liabilities Borrowings..................................................................................................... (i) (ii) Trade Payables .............................................................................................. (iii) Other Financial Liabilities ......................................................................... (b) Current Tax Liabilities (Net) .................................................................................. (c) Provisions ................................................................................................................... (d) Other Current Liabilities ........................................................................................ Total Current Liabilities ................................................................................................ Liabilities directly associated with Assets Classified as Held For Sale ............ Total Liabilities before Regulatory Deferral Account ............................ Regulatory Deferral Account - Liability ..................................................................... TOTAL EQUITY AND LIABILITIES ........................................................................................ 1 2 2, 3 3 3 2 2, 3 3 3 3 1, 3 3 3 2 43,256.67 1,652.60 1,641.57 1,583.08 11,111.66 881.11 190.05 76.48 574.76 942.09 167.59 83.24 901.33 63,062.23 1,623.08 436.16 2,788.93 810.09 1,061.16 124.62 720.67 34.27 1,100.37 14.77 877.67 9,591.79 4,778.70 77,432.72 6,304.56 83,737.28 270.50 1,500.00 14,989.70 16,760.20 2,015.29 18,775.49 22,356.31 21.00 713.31 3.74 516.56 300.00 3,090.04 27,000.96 18,827.28 5,609.82 10,279.73 160.38 193.44 1,501.40 36,572.05 903.78 64,476.79 485.00 83,737.28 (1,825.06) Nil Nil Nil Nil Nil Nil 55.25 Nil (668.41) Nil 34.93 675.98 (1,727.31) Nil Nil Nil Nil Nil Nil 64.13 Nil (698.78) Nil 634.65 Nil Nil (1,727.31) Nil (1,727.31) Nil Nil (360.32) (360.32) Nil (360.32) Nil Nil (66.00) Nil Nil Nil (1,248.56) (1,314.56) Nil Nil (336.75) Nil Nil 284.32 (52.43) Nil (1,366.99) Nil (1,727.31) 41,431.61 1,652.60 1,641.57 1,583.08 11,111.66 881.11 190.05 131.73 574.76 273.68 167.59 118.17 1,577.31 61,334.92 1,623.08 436.16 2,788.93 810.09 1,061.16 124.62 784.80 34.27 401.59 14.77 1,512.32 9,591.79 4,778.70 75,705.41 6,304.56 82,009.97 270.50 1,500.00 14,629.38 16,399.88 2,015.29 18,415.17 22,356.31 21.00 647.31 3.74 516.56 300.00 1,841.48 25,686.40 18,827.28 5,609.82 9,942.98 160.38 193.44 1,785.72 36,519.62 903.78 63,109.80 485.00 82,009.97 Consolidated Financials I 233 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 43. Restated Consolidated Financial Statements for the year ended 31st March, 2018 and as at 1st April, 2017 (Contd.) Consolidated Balance Sheet as at 1st April, 2017 Reported Amount As at 1st April, 2017 ` crore Restatements ` crore Restated Amount As at 1st April, 2017 ` crore ASSETS Non-current Assets (a) Property, Plant and Equipment ........................................................................ (b) Capital Work-in-Progress .................................................................................... (c) Investment Property ............................................................................................ (d) Goodwill ................................................................................................................... (e) Other Intangible Assets....................................................................................... Intangible Assets under Development.......................................................... (f ) (g) Investments accounted for using the Equity Method ............................. (h) Financial Assets (i) (ii) (iii) (iv) (v) Other Investments .................................................................................... Trade Receivables ...................................................................................... Loans .............................................................................................................. Finance Lease Receivables ..................................................................... Other Financial Assets ............................................................................. (i) Non-current Tax Assets (Net) ............................................................................. (j) Deferred Tax Assets (Net) .................................................................................... (k) Other Non-current Assets .................................................................................. Total Non-current Assets Current Assets (a) (b) Financial Assets Inventories ............................................................................................................... Investments ................................................................................................. (i) Trade Receivables ...................................................................................... (ii) Unbilled Revenue ...................................................................................... (iii) Cash and Cash Equivalents .................................................................... (iv) Bank Balances other than (iv) above .................................................. (v) Loans .............................................................................................................. (vi) (vii) Finance lease receivables ....................................................................... (viii) Other financial assets ............................................................................... (c) Current Tax Assets (Net) ...................................................................................... (d) Other Current Assets ............................................................................................ Total Current Assets ..................................................................................................... Assets Classified as Held For Sale .............................................................................. Total Assets before Regulatory Deferral Account ......................................... Regulatory Deferral Account - Assets ...................................................................... TOTAL ASSETS ........................................................................................................................... EQUITY AND LIABILITIES Equity (a) Equity Share Capital ............................................................................................. (b) Unsecured Perpetual Securities ....................................................................... (c) Other Equity ............................................................................................................ Equity attributable to Shareholders of the Company ................................. Non-controlling Interests.......................................................................................... Total Equity ...................................................................................................................... LIABILITIES Non-current Liabilities (a) Financial Liabilities Borrowings................................................................................................... (i) (ii) Trade Payables ............................................................................................ (iii) Other Financial Liabilities ....................................................................... (b) Non-current Tax Liabilities (Net) ...................................................................... (c) Deferred Tax Liabilities (Net) ............................................................................. (d) Provisions ................................................................................................................. (e) Other Non-current Liabilities ............................................................................ Total Non-current Liabilities .................................................................................... Current Liabilities (a) Financial Liabilities Borrowings................................................................................................... (i) (ii) Trade Payables ............................................................................................ (iii) Other Financial Liabilities ....................................................................... (b) Current Tax Liabilities (Net) ................................................................................ (c) Provisions ................................................................................................................. (d) Other Current Liabilities ...................................................................................... Total Current Liabilities .............................................................................................. Liabilities directly associated with Assets Classified as Held For Sale .......... Total Liabilities before Regulatory Deferral Account .................................. Regulatory Deferral Account - Liability ................................................................... TOTAL EQUITY AND LIABILITIES ...................................................................................... 234 I Consolidated Financials 1 2 2, 3 3 3 2 2, 3 3 3 1, 3 3 3 43,232.93 1,923.24 2.49 1,653.57 1,705.80 254.68 9,496.09 1,279.14 187.92 77.16 573.47 1,183.68 146.35 91.53 1,287.24 63,095.29 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 75,803.09 7,117.70 82,920.79 270.50 1,500.00 12,944.05 14,714.55 1,868.99 16,583.54 25,142.96 35.57 550.94 3.74 1,751.14 270.68 3,078.65 30,833.68 16,279.79 5,529.00 11,386.46 122.04 207.69 1,316.24 34,841.22 Nil 65,674.90 662.35 82,920.79 (1,828.72) Nil Nil Nil Nil Nil Nil Nil Nil 60.16 Nil (788.34) Nil 32.59 771.09 (1,753.22) Nil Nil Nil Nil Nil Nil 22.13 Nil (732.17) Nil 710.04 Nil Nil (1,753.22) Nil (1,753.22) Nil Nil (292.06) (292.06) Nil (292.06) Nil Nil Nil Nil Nil Nil (1,410.14) (1,410.14) Nil Nil (799.83) Nil Nil 748.81 (51.02) Nil (1,461.16) Nil (1,753.22) 41,404.21 1,923.24 2.49 1,653.57 1,705.80 254.68 9,496.09 1,279.14 187.92 137.32 573.47 395.34 146.35 124.12 2,058.33 61,342.07 1,599.56 1,097.78 3,832.12 1,081.92 835.22 119.08 677.57 39.16 181.23 31.68 1,293.01 10,788.33 1,919.47 74,049.87 7,117.70 81,167.57 270.50 1,500.00 12,651.99 14,422.49 1,868.99 16,291.48 25,142.96 35.57 550.94 3.74 1,751.14 270.68 1,668.51 29,423.54 16,279.79 5,529.00 10,586.63 122.04 207.69 2,065.05 34,790.20 Nil 64,213.74 662.35 81,167.57 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 43. Restated Consolidated Financial Statements for the year ended 31st March, 2018 and as at 1st April, 2017 (Contd.) Statement of Profit and Loss for the year ended 31st March, 2018 Notes 3 1, 3 3 1 3 Particulars I II III IV V Revenue from Operations ......................................................................................................................... Other Income ................................................................................................................................................. Total Income ................................................................................................................................................. Expenses Cost of Power Purchased ................................................................................................................. Cost of Fuel ........................................................................................................................................... Raw Material Consumed .................................................................................................................. Purchase of Finished Goods, Spares and Shares ..................................................................... Transmission Charges ....................................................................................................................... (Increase)/Decrease in Stock-in-Trade and Work in Progress ............................................. Employee Benefits Expense............................................................................................................ Finance Costs ....................................................................................................................................... Depreciation and Amortisation Expenses ................................................................................. Other Expenses ................................................................................................................................... Total Expenses ............................................................................................................................................. 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) ....................................................................... Add/(Less): Regulatory income/(expense) (net) in respect of earlier years .................... VI Profit Before Exceptional Items, Tax and 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 ................................................................................................................................................... VII Profit Before Exceptional Items and Tax ......................................................................................... Less: Exceptional Items .................................................................................................................. Reversal of Impairment of Mundra CGU (Net) ............................................................ Impairment for Investments in Joint Ventures and Related Obligation ............ Impairment in respect of Other Property, Plant and Equipment and Goodwill Damages towards contractual obligations .................................................................. VIII Profit/(Loss) Before Tax ........................................................................................................................... IX Tax Expense Current Tax ............................................................................................................................................ Deferred Tax ......................................................................................................................................... Deferred tax (recovered) / payable .............................................................................................. Profit for the Year from Continuing Operations .......................................................................... Profit before tax from Discontinued Operations ........................................................................ Current Tax ............................................................................................................................................ Deferred Tax ......................................................................................................................................... Tax Expense on Discontinued Operations ..................................................................................... Profit for the Year from Discontinued Operations ..................................................................... Profit for the Year ....................................................................................................................................... X XI Other Comprehensive Income/(Expenses) - Continuing Operations A (i) (ii) Items that will not be reclassified to profit or loss (a) Remeasurement of the Defined Benefit Plans ................................................... (b) Equity Instruments through Other Comprehensive Income ....................... Tax relating to items that will not be reclassified to profit and loss (a) Current Tax ...................................................................................................................... (b) Deferred Tax ................................................................................................................... Reported Amount Restatements ` crore 29,331.22 432.69 29,763.91 8,004.23 10,009.86 748.97 181.68 281.99 (8.51) 1,381.92 3,722.99 2,398.10 2,374.11 29,095.34 668.57 (409.85) Nil (409.85) ` crore (2,490.95) Nil (2,490.95) (2406.91) Nil Nil Nil Nil Nil Nil 38.49 (51.93) Nil (2,420.35) (70.60) Nil Nil Nil Restated Amount ` crore 26,840.27 432.69 27,272.96 5,597.32 10,009.86 748.97 181.68 281.99 (8.51) 1,381.92 3,761.48 2,346.17 2,374.11 26,674.99 597.97 (409.85) Nil (409.85) 258.72 (70.60) 188.12 1,553.91 1,812.63 1,886.72 (527.54) (149.57) (107.08) 1,102.53 2,915.16 663.69 (837.89) 338.51 164.31 2,750.85 (85.87) (17.36) 3.23 (14.13) (71.74) 2,679.11 (4.75) (262.22) (50.51) 391.87 Nil (70.60) Nil Nil Nil Nil Nil (70.60) Nil (2.34) Nil (2.34) (68.26) Nil Nil Nil Nil Nil (68.26) Nil Nil Nil Nil 1,553.91 1,742.03 1886.72 (527.54) (149.57) (107.08) 1,102.53 2,844.56 663.69 (840.23) 338.51 161.97 2,682.59 (85.87) (17.36) 3.23 (14.13) (71.74) 2,610.85 (4.75) (262.22) (50.51) 391.87 Consolidated Financials I 235 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Notes to the Consolidated Financial Statements 43. Restated Consolidated Financial Statements for the year ended 31st March, 2018 and as at 1st April, 2017 (Contd.) The Tata Power Company Limited Particulars B (i) (iii) Share of Other Comprehensive Income/(Expense) of Associates and Joint Ventures accounted for using the Equity Method .................................................... 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 .............................................................. Other Comprehensive Income/(Expense) ...................................................................................... Other Comprehensive Income - Discontinued Operations ................................................... Items that will not be reclassified to profit or loss ........................................................... A (i) Reported Amount Restatements Restated Amount Notes ` crore (10.74) 29.08 0.41 93.14 0.85 93.99 ` crore Nil Nil Nil Nil Nil Nil ` crore (10.74) 29.08 0.41 93.14 0.85 93.99 XII Total Comprehensive Income for the year (X + XI) ..................................................................... 2,773.10 (68.26) 2,704.84 Profit for the Year attributable to: - Owners of the Company ............................................................................................................... - Non-controlling interest ................................................................................................................ Other Comprehensive 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 ................................................................................................................ Reconciliation of Total Equity as at 31st March, 2018 and 1st April, 2017. Equity as per Reported Financial Statements Equity Share Capital ................................................................................................................................................................. Unsecured Perpetual Securities ........................................................................................................................................... Other Equity ................................................................................................................................................................................ Impact of Ind AS 115 Deferred Revenue Liabilities ......................................................................................................................................... Deferred Revenue Assets ................................................................................................................................................ Tax Expenses ....................................................................................................................................................................... Equity as per Restated Financial Statements ............................................................................................................ 2,476.56 202.55 2,679.11 94.00 (0.01) 93.99 2,570.56 202.54 2,773.10 (68.26) Nil (68.26) Nil Nil Nil (68.26) Nil (68.26) 2,408.30 202.55 2,610.85 94.00 (0.01) 93.99 2,502.30 202.54 2,704.84 As at 31st March, 2018 ` crore As at 1st April, 2017 ` crore 270.50 1,500.00 14,989.70 16,760.20 (458.07) 62.82 34.93 270.50 1,500.00 12,944.05 14,714.55 (367.56) 42.91 32.59 16,399.88 14,422.49 236 I Consolidated Financials 100th Annual Report 2018-19 Notes to the Consolidated Financial Statements 43. Restated Consolidated Financial Statements for the year ended 31st March, 2018 and as at 1st April, 2017 (Contd.) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2018. Total Comprehensive Income as per Reported Financial Statements ............................................................... Impact of Ind AS 115 Revenue from Operations .......................................................................................................................................................................................... Cost of Power Purchased ............................................................................................................................................................................................. Finance Costs ........................................................................................................................................................................................................................ Depreciation and Amortisation Expenses .................................................................................................................................................... Tax Expense ............................................................................................................................................................................................................................ Total Comprehensive Income as per Restated Financial Statements ................................................................. For the year ended 31st March, 2018 ` crore 2,773.10 (2,490.95) 2,406.91 (38.49) 51.93 2.34 2,704.84 Notes: 1. 2 3. The Group was disclosing Government grant as non-financial liability till 31st March 2018. Considering the amendment in Ind-AS 20, the Group has netted off the government grant from carrying value of property, plant and equipment retrospectively. This has resulted in to reduction in property, plant and equipment by ₹ 1,825.06 crore as at 31st March 2018 (1st April, 2017 - ₹ 1,828.72 crore). The corresponding reduction in current liability is ₹ 52.74 crore (1st April, 2017 - ₹ 51.02 crore) and the reduction in non-current liability is ₹ 1,772.32 crore (1st April, 2017 - ₹ 1,777.70 crore). The revenue from operations and depreciation has reduced by ₹ 51.93 crore for the year ended 31st March 2018. The Group has reclassified the security deposit amount from other financial asset to Loans as per schedule III of the Companies Act, 2013. Effective 1st April 2018, the Group has adopted Ind AS 115 ‘Revenue from contract with customers’ using full retrospective method. The application of Ind AS 115 has impacted recognition of power supply revenue and capacity charges for certain plant. Further, power trading business revenue is presented net of related power purchase cost. On application of Ind-AS 115, the retained earnings is lower by ₹ 292.06 crore, net of tax effect. The impact on the financial results of the Group vis-à-vis results originally published for the year ended 31st March 2018 is as follows: Particulars Revenue ........................................................................................................................................................................................................................... Cost of power purchased .................................................................................................................................................................................. Finance cost ................................................................................................................................................................................................................. Profit before tax ..................................................................................................................................................................................................... Tax credit......................................................................................................................................................................................................................... Profit after tax .......................................................................................................................................................................................................... For the year ended 31st March, 2018 ` crore (2,439.02) 2,406.91 (38.49) (70.60) 2.34 (68.26) Change in basic and diluted earnings per share ........................................................................................................................... (0.25) *figures in bracket signify negative impact on profits The impact on balance sheet as at 31st March 2018 and 31st March 2017 is as follows: Particulars As at 31st March, 2017 ` crore Deferred Revenue asset ............................................................................................................................. 42.91 Deferred Revenue liability ........................................................................................................................ (367.55) Deferred tax asset ........................................................................................................................................... 32.59 Further, as per Ind AS 115 amount recoverable from consumers are considered as contract asset accordingly, the Group has classified amount recoverable from consumers from other financial assets to other assets. Also liabilities towards consumers are considered as contract liabilities and accordingly, has been classified from other financial liabilities to other liabilities As at 31st March, 2018 ` crore 62.82 (458.07) 34.93 Consolidated Financials I 237 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Consolidated Financial Statements 44. Entry Tax The Group had received demands in respect of entry tax on imports of fuel for Trombay plant aggregating ₹ 2,256.91 crore (including interest of ₹ 653.05 crore and penalty of ₹ 743.74 crore) for financial years 2005-06 to 2013-14. In the past, the Group had paid ₹ 221.73 crore under protest and recognised the same as expense. Remaining demand amount of ₹ 2,035.18 crore had been contested by the Group before the Hon’ble Supreme Court and disclosed the same as contingent liability in the previous year. During the year, the Government of Maharashtra has notified an amnesty scheme for settlement of arrears of tax, interest and penalty. Under the Amnesty scheme, amount payable by the Group shall be ₹ 345 crore (including interest and provision for contingency of ₹ 78 crore and ₹ 45 crore respectively) and accordingly recognised the provision for the same. Further, the amount has been recognised as revenue to the extent recoverable from consumers. 45. Approval of Consolidated Financial Statements The Consolidated Financial Statements were approved for issue by the Board of Directors on 2nd May, 2019. As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. PRAVEER SINHA CEO & Managing Director DIN 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. For and on behalf of the Board, BANMALI AGRAWALA Director DIN 00120029 H. M. MISTRY Company Secretary 238 I Consolidated Financials 100th Annual Report 2018-19 I - C O A m r o F i s e r u t n e V t n o J / s e i n a p m o C e t a i c o s s A / s e i r a i d i s b u S f o t n e m e t a t s l a i c n a n fi e h t f o s e r u t a e f i t n e i l a s g n n i a t n o c t n e m e t a t S s e i r a i d i s b u S : ” A “ t r a P i l g n d o h e r a h s d n e d v D i i d n e d v D i i ) s s o L ( r o f e r o r c ` f o % d e s o p o r P d e s o p o r P / t fi o r P n o i s i v o r P y t i u q E n o y t i u q E n o r e t f a n o i t a x a t / t fi o r P ) s s o L ( e r o f e b s e r a h S s e r a h S n o i t a x a t . l c n i ( n o i t a x a t ) % ( d e r r e f e D l a t o T r e h t O r e v o n r u T s t n e m t s e v n I t e N l a t o T e u n e v e R e m o c n I 4 1 s t e s s A s e i t i l i b a L i . h S . l c x E ( & l a t i p a C ) s e v r e s e R l a t o T s t e s s a s e v r e s e R l s u p r u s & e r a h S l a t i p a c - n o N . l c n I ( . f e r P . l c n I ( g n i l l o r t n o c d n a s e r a h s s a e t a R t s 1 3 t a , h c r a M ) t s e r e t n I l a u t e p r e P 9 1 0 2 ) s e i t i r u c e S 4 0 0 5 . . 0 0 0 0 1 . 0 0 0 0 1 0 0 4 7 . . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 0 0 1 5 . . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 0 0 1 5 . . 0 0 0 0 1 . 0 0 0 0 1 0 5 2 9 . . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 . 7 0 7 5 . 0 0 0 0 1 . 0 0 0 0 1 0 0 2 7 . . 0 0 0 0 1 . 0 0 0 0 1 . 0 0 0 0 1 l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N l i N . 9 2 2 2 1 0 3 1 . 0 9 6 3 . . 0 9 2 7 2 . ) 2 7 3 5 6 1 ( , . ) 0 9 5 0 2 ( ) 8 4 4 4 ( . ) x a t ) 7 2 2 ( . 6 8 0 . 8 3 0 2 . 2 8 5 8 . l i N l i N l i N ) 1 0 0 ( . ) 1 0 0 ( . 3 5 2 9 . 4 4 0 9 . . 9 7 0 7 1 5 6 5 . l i N 7 4 3 1 . l i N * * * l i N 2 5 4 . l i N l i N 1 8 6 4 . 4 0 3 3 . . 3 8 8 2 4 7 1 . l i N l i N l i N l i N l i N l i N l i N 3 4 3 . . 4 9 5 3 3 . 6 5 0 0 1 . 0 5 6 3 4 . 3 9 6 8 8 7 , ) 1 0 0 ( . ) 1 0 0 ( . l i N l i N l i N l i N . 2 0 8 0 1 l i N l i N . 1 9 8 7 7 7 , 5 0 0 . l i N l i N . 4 3 9 3 1 . 9 9 1 0 8 8 5 6 8 . . 1 4 5 1 7 . 7 1 0 6 8 3 , . 2 7 7 9 8 1 3 . . 0 9 0 0 1 . 6 9 8 2 1 . 6 9 8 2 1 ) 8 4 4 4 ( . l i N l i N l i N l i N l i N . 8 9 9 8 9 2 , . ) 0 9 5 0 2 ( 3 8 2 1 . 5 7 2 1 . 8 0 0 . . 9 5 4 2 9 3 , . 0 8 4 5 1 2 9 4 1 . . 2 7 9 6 1 . 5 4 0 8 8 2 9 9 . . 3 5 0 7 8 . 9 3 0 0 1 . 2 7 8 5 2 1 , 2 0 0 2 . 7 8 3 1 . 8 2 7 5 . . 2 7 8 5 3 . ) 2 7 3 5 6 1 ( , . 9 2 5 9 1 . 3 5 4 1 . 5 5 4 6 2 . 0 1 1 4 8 2 , . 7 8 6 3 1 7 , 8 2 4 . 9 4 2 . 1 3 2 . . 5 0 5 6 4 5 2 7 . . 4 2 2 6 2 . 5 0 6 7 7 2 , . 3 3 4 6 0 7 , l i N l i N l i N . 1 0 1 9 1 6 1 0 . 4 8 5 5 . . 8 5 1 8 1 . 2 4 7 3 2 2 0 3 3 . . 4 0 2 1 . 9 0 1 4 1 . 4 3 5 7 2 1 3 1 . . 5 6 6 7 2 . 1 6 4 6 2 . 6 9 1 9 1 . 7 7 2 5 5 . 3 7 4 4 7 . 6 9 5 7 1 l i N * * * l i N 5 9 7 . l i N l i N l i N l i N l i N . 1 4 7 3 l i N l i N l i N l i N l i N 4 3 0 . 9 0 4 2 . 9 2 0 . 0 0 4 . l i N l i N l i N l i N l i N l i N 7 0 7 3 . . 9 6 1 7 2 1 , . 0 5 7 7 3 0 0 5 4 . 2 6 4 1 . l i N l i N l i N l i N l i N l i N l i N 7 0 0 . 8 3 0 . 3 2 3 4 . . 0 1 0 0 3 . 3 8 4 3 1 . 3 9 4 3 4 . 8 7 5 9 2 1 , ) 4 0 8 ( . 0 4 0 . ) 4 7 1 ( . ) 3 1 7 ( . l i N l i N l i N ) 4 7 0 ( . ) 4 0 8 ( . 0 4 0 . ) 4 7 1 ( . ) 7 8 7 ( . 3 9 1 2 . . 0 5 1 8 3 0 0 5 4 . 2 6 4 1 . . 4 6 1 2 7 6 3 . ) 0 3 3 1 ( . . 3 8 2 3 1 . 3 5 9 1 1 ) 3 8 3 1 ( . l i N l i N l i N 5 4 6 . ) 8 3 7 ( . ) 9 9 6 ( . . 3 5 1 8 1 . 7 1 8 5 3 6 0 9 5 . . 8 9 7 8 1 . 9 7 0 5 3 7 0 2 5 . ) 5 5 3 ( . ) 8 3 8 ( . ) 9 9 6 ( . . 8 4 3 2 1 . 6 8 7 9 1 3 , 5 5 2 2 . . 1 3 5 7 1 3 , 0 0 1 . . 3 8 3 7 4 . 8 2 7 5 0 2 , . 1 1 1 3 5 2 , 7 4 3 1 . . 1 4 0 3 4 2 0 0 . . 9 3 0 3 4 . 2 6 9 9 1 . 9 1 6 7 2 . 1 0 2 3 1 . 8 1 4 4 1 . 8 6 0 2 7 9 3 7 . l i N l i N . 4 7 1 1 3 2 1 . l i N l i N 1 5 0 1 . 1 4 7 1 . . 5 6 8 3 9 . 9 1 8 5 9 . ) 3 0 0 4 5 ( . 7 5 9 5 5 . 6 1 9 6 2 6 1 . 2 1 0 . 6 8 2 2 . 7 0 0 . . 8 0 0 0 2 . 7 5 0 5 2 . 9 1 1 2 ) 0 1 0 ( . 9 0 7 4 . 5 0 0 . 5 0 0 . 0 4 3 . 0 0 1 . 0 0 1 . . 6 1 9 6 . 1 6 0 8 0 2 , . 7 6 9 7 7 2 , . 8 2 0 6 8 4 , . 3 9 4 7 8 4 , . 2 0 3 6 7 1 1 , . 5 9 7 3 6 6 1 , . 8 8 2 3 5 . 6 6 4 0 9 . 7 6 6 9 3 . 4 6 2 8 1 3 , . 0 7 6 6 4 4 , . 8 5 9 9 9 4 , . 4 3 5 8 0 2 , . 0 0 0 9 9 2 , . 6 6 3 0 7 1 , . 3 3 0 0 1 2 , . 0 1 8 9 2 1 , . 2 8 6 5 5 2 , . 3 9 3 2 5 6 , . 7 5 6 0 7 9 , ) 0 5 1 ( . ) 1 0 0 ( . 7 5 2 . 5 0 0 . 7 0 1 . 4 0 0 . . 2 5 8 7 0 5 , . 7 3 5 9 8 5 , . 9 8 3 7 9 0 1 , . 8 7 8 2 5 . 8 5 0 0 9 . 7 4 1 4 1 . 5 2 4 5 6 . 9 6 1 7 5 . ) 7 3 1 1 1 0 1 ( , . 4 6 0 3 6 2 , ) 5 5 9 ( . ) 2 1 0 ( . . 1 4 8 3 1 . 5 0 4 4 2 4 5 9 1 . 4 2 1 2 . ) 5 0 0 ( . 9 4 0 5 . 9 5 0 1 . ) 1 0 0 ( . ) 1 0 0 ( . 3 0 0 . 8 0 2 . 4 0 0 . 4 0 0 . 1 0 0 . 3 0 0 . 3 0 0 . 4 0 0 . ) 6 0 0 ( . ) 6 0 0 ( . ) 2 0 0 ( . l i N ) 9 4 3 1 ( . 3 2 6 2 . ) 6 2 2 3 ( . 8 5 9 5 . 4 5 9 9 . . 2 1 9 5 1 ) 2 7 0 ( . . 5 7 8 1 1 2 , . 3 4 5 2 2 5 , . 1 2 4 4 3 7 , . 2 4 7 0 5 1 , 2 8 2 2 . 3 7 0 1 . 0 0 6 1 . . 2 9 8 0 5 1 , 0 1 4 . 8 0 4 . . 0 2 5 5 2 . 7 4 4 0 6 . 0 0 2 5 5 5 0 8 . 1 1 0 . . 0 3 6 8 9 4 1 , . 1 1 0 4 9 4 , . 8 7 9 2 2 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 6 1 9 6 . 6 1 9 6 . 6 1 9 6 . 6 1 9 6 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . y c n e r r u c d o i r e p e h t r o f i y r a d i s b u s d e n r e c n o c g n i r i u q c a i y r a d i s b u s e e p u R n a d n i I 9 1 - r a M - 1 3 5 0 - c e D - 1 3 1 ) d e t a d i l o s n o C ( . d t L O C L E N e e p u R n a d n i I 9 1 - r a M - 1 3 0 0 - v o N - 7 2 e e p u R n a d n i I 9 1 - r a M - 1 3 3 0 - c e D - 1 3 e e p u R n a d n i I 9 1 - r a M - 1 3 5 0 - p e S - 2 . d t L . d t L . o C t n e m t s e v n I b a a T - f A . i o C g n d a r T r e w o P a t a T . d t L r e w o P n o h t i a M e e p u R n a d n i I 9 1 - r a M - 1 3 7 0 - r p A - 2 2 . d t L r e w o P t a r a j u G l a t s a o C r a l l o D S U 9 1 - r a M - 1 3 7 0 - n u J - 2 2 r a l l o D S U 9 1 - r a M - 1 3 7 0 - n u J - 2 2 3 1 3 1 . d t L s t n e m t s e v n I a r i h B . d t L s t n e m t s e v n I i r u p v h B i e e p u R n a d n i I 9 1 - r a M - 1 3 8 0 - n a J - 2 2 . d t L n o i t u b i r t s i D i l h e D r e w o P a t a T e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - v o N - 6 . d t L n o i t u b i r t s i D r u p d e h s m a J r e w o P a t a T e e p u R n a d n i I 9 1 - r a M - 1 3 7 0 - r a M - 8 2 . d t L y t i l i t U r e w o P l a i r t s u d n I r a l l o D S U 9 1 - r a M - 1 3 8 0 - r a M - 1 1 3 1 . d t L . e t P s e c r u o s e R y g r e n E t s u r T e e p u R n a d n i I 9 1 - r a M - 1 3 7 0 - r a M - 8 2 . l d t L y g r e n E e b a w e n e R r e w o P a t a T e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - n u J - 8 2 0 1 . d t L s l m e t s y S r a o S r e w o P a t a T r a l l o D S U 9 1 - r a M - 1 3 7 0 - y a M - 7 1 3 1 . d t L s t n e m t s e v n I i l o p o h K r a l l o D S U 9 1 - r a M - 1 3 3 1 - r p A - 5 3 1 . d t L . e t P l a n o i t a n r e t n I r e w o P a t a T e e p u R n a d n i I 9 1 - r a M - 1 3 1 1 - g u A - 3 2 . d t L a r f n I L P D N e e p u R n a d n i I 9 1 - r a M - 1 3 1 1 - n a J - 5 . d t L y g r e n E n e e r G r e w o P a t a T r a l l o D S U 9 1 - r a M - 1 3 8 0 - n a J - 1 3 3 1 . d t L . e t P n r e t s a E y g r e n E e g n a h c x E g n i t r o p e R g n i t r o p e R f o e t a D i y r a d i s b u S e h t f o e m a N N S 5 0 0 . 5 0 0 . 5 0 0 . 2 5 9 1 . 0 3 0 6 . . 6 3 1 1 6 3 5 0 . 0 0 0 1 . 0 0 1 . * 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 6 0 1 . e e p u R n a d n i I 9 1 - r a M - 1 3 5 1 - c e D - 0 1 e e p u R n a d n i I 9 1 - r a M - 1 3 5 1 - c e D - 7 1 e e p u R n a d n i I 9 1 - r a M - 1 3 6 1 0 2 - n a J - 9 e e p u R n a d n i I 7 1 - c e D - 1 3 5 1 - y a M - 8 2 o t p u $ & 2 1 d e t a d i l o s n o c ( . d t L m r a f d n W e d a v N i i . d t L m r a f d n W a p u S i . i d t L m r a f d n W d a w a o o P l i . d t L s c i m a r e C a t a T l ) e a s l r o f d e h r e t f a e r e h t 7 1 0 2 , r e b m e c e D t s 1 3 e e p u R n a d n i I 9 1 - r a M - 1 3 6 1 - y a M - 9 1 . d t L h t a J l s e b a w e n e R a m a R o d n I e e p u R n a d n i I 9 1 - r a M - 1 3 7 1 - b e F - 7 2 e e p u R n a d n i I 9 1 - r a M - 1 3 6 1 - p e S - 4 1 2 ) d e t a d i l o s n o C ( . d t L l y g r e n E e b a w e n e R n a h w a W l . d t L m r a f d n W a r a g a V i i e e p u R n a d n i I 9 1 - r a M - 1 3 7 1 - l u J - 1 d e t i i m L n o i t u b i r t s i D j r e m A P T e e p u R n a d n i I 9 1 - r a M - 1 3 6 1 - n u J - 4 1 d e t i i m L a y r u a S e e y a a h t s a r i h C l e b u R n a i s s u R 9 1 - r a M - 1 3 7 1 - g u A - 7 1 2 1 d e t i i m L s e c r u o s e R l a r u t a N n r e t s a E r a F 1 2 3 4 5 6 7 8 9 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 1 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 Consolidated Financials I 239 9 6 2 1 . ) 6 7 5 1 ( . 7 3 6 2 . 6 1 9 6 . r a l l o D S U 9 1 - r a M - 1 3 9 0 - g u A - 6 2 $ & 3 1 , 2 1 l ) e a s l r o f d e h r e t f a e r e h t 7 1 0 2 , h c r a M t s 1 3 o t p u d e t a d i l o s n o c ( k b T n a a d n A l i g r e n E r e b m u S T P E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S I - C O A m r o F i ) . d t n o C ( s e r u t n e V t n o J / s e i n a p m o C e t a i c o s s A / s e i r a i d i s b u S f o t n e m e t a t s l a i c n a n fi e h t f o s e r u t a e f i t n e i l a s g n n i a t n o c t n e m e t a t S i s e r u t n e V t n o J d n a s e t a i c o s s A : ” B “ t r a P n o i t a d i l o s n o C e r o r c ` t o N n i d e r e d i s n o c n i d e r e d i s n o C n o i t a d i l o s n o C / t fi o r P ) s s o L ( x a t r e t f a d e t i d u a t s e t a l r e p t o n s i e c n e u fl n i i l s a g n d o h e r a h S y n a p m o c t n a c fi n g i s i s i % h t r o w t e N y h w n o s a e R n o i t p i r c s e D f o t n e t x E l o t e b a t u b i r t t a e t a i c o s s a e h t e r e h t w o h f o i g n d o H l d e t a d i l o s n o c f o t n u o m A t n e m t s e v n I / e t a i c o s s A n i e r u t n e V t n o J i i s e n a p m o c ) . o N ( d n e r a e y e h t n o y n a p m o c e h t 9 1 0 2 e r u t n e V t n o J i / e t a i c o s s A f o s e r a h S e g n a h c x E t a s a e t a R l y b d e h y n a p m o c , h c r a M t s 1 3 g n i t r o p e R t s e t a L y c n e r r u c d e t i d u a e c n a a B l i t n o J f o e t a D g n i r i u q c a e t a D t e e h S e r u t n e V y n a p m o C e r u t n e V t n o J / e t a i c o s s A e h t i f o e m a N N S - - - - - - - - - - - - - - - - - - - - - - - - - - - * The Tata Power Company Limited . 5 8 2 4 . 0 7 5 8 . 4 7 9 1 1 t e e h S e c n a a B l l i N l i N 5 1 5 . . 8 4 8 3 7 * * 0 5 7 5 . . 2 2 2 8 ) 6 0 0 ( . l i N l i N l i N l i N l i N l i N 0 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N 0 1 e t o N 0 1 e t o N 0 1 e t o N 0 1 e t o N 0 1 e t o N 0 1 e t o N 0 1 e t o N % 0 3 % 0 3 % 0 3 % 0 3 % 0 3 % 1 5 % 4 7 % 0 5 % 0 4 % 3 3 3 3 . % 3 3 3 3 . % 3 3 3 3 . % 3 3 3 3 . % 3 3 3 3 . % 0 3 % 0 3 % 0 3 % 0 3 % 0 3 % 6 2 % 0 4 % 0 3 % 0 4 % 0 5 % 6 2 . 5 1 2 5 6 . 4 2 9 2 0 4 , . 6 7 7 1 8 2 , 0 2 0 . 3 3 0 . . 8 6 8 3 2 . 4 8 2 9 4 5 2 3 4 . 0 2 0 1 . 0 3 9 3 . 2 0 0 . 7 7 0 . 2 0 0 . 2 0 0 . * * 1 0 0 . 1 0 0 . 4 1 5 . * * . 4 6 5 4 6 . 1 4 6 6 4 . 4 7 5 7 2 8 8 4 2 . % 3 3 3 3 . 7 0 0 . 0 0 3 0 0 0 3 , 0 4 5 3 2 1 , 0 0 0 0 6 , 0 8 3 2 8 , , 0 0 0 0 8 6 8 3 2 , , , 0 0 0 0 4 8 2 9 4 , , 2 0 0 0 5 2 3 4 , , 0 0 8 7 9 1 0 1 , 7 6 6 6 1 , 7 6 6 6 6 7 , 7 6 6 6 1 , 7 6 6 6 1 , 3 0 0 0 8 1 , 9 5 4 7 0 1 , 9 6 7 0 1 , 0 0 5 7 , , 0 0 0 0 0 3 9 3 , , 0 0 0 0 9 2 0 8 6 , 0 0 3 0 0 5 9 5 4 6 1 , 0 0 5 2 5 4 , 6 3 7 4 1 , 0 6 6 6 6 , 8 7 4 . 6 1 9 6 . 6 1 9 6 . 6 1 9 6 . 6 1 9 6 . 5 0 0 0 . 5 0 0 0 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 0 0 1 . 6 1 9 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6 2 3 1 & 2 1 s e c r u o s e R m i t l a K l a o c o d n I T P $ & 3 1 , 2 1 l ) e a s l r o f d e h r e t f a e r e h t 4 1 0 2 , h c r a M t s 1 3 o t p u d e t a d i l o s n o c ( s e c r u o s e R l e s l a K l a o c o d n I T P e e p u R n a d n i I 9 1 - r a M - 1 3 3 0 - l u J - 7 e e p u R n a d n i I 9 1 - r a M - 1 3 7 0 - b e F - 3 2 e e p u R n a d n i I 9 1 - r a M - 1 3 1 1 - r p A - 1 2 e e p u R n a d n i I 9 1 - r a M - 1 3 7 0 - v o N - 0 2 e e p u R n a d n i I 7 1 - r a M - 1 3 8 0 - l u J - 8 1 e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - p e S - 4 1 e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - p e S - 2 1 e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - c e D - 3 1 e e p u R n a d n i I 9 1 - r a M - 1 3 2 1 - c e D - 0 2 r a l l o D S U 9 1 - r a M - 1 3 0 1 - t c O - 8 2 r a l l o D S U 9 1 - r a M - 1 3 0 1 - t c O - 8 2 r a l l o D S U 9 1 - r a M - 1 3 0 1 - t c O - 8 2 r a l l o D S U 9 1 - r a M - 1 3 0 1 - t c O - 8 2 r a l l o D S U 9 1 - r a M - 1 3 1 1 - 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c e D - 1 3 $ . d t L s m e t s y S o t i l e N e e p u R n a d n i I 9 1 - r a M - 1 3 0 0 - v o N - 7 2 2 1 . i d t L s r e e n g n E n u m h s a Y u N n a t u h B 9 1 - r a M - 1 3 9 0 - n a J - 9 1 . d t L n o i t a r o p r o c r e w o P o r d y H u h h c a g a D e e p u R n a d n i I 9 1 - r a M - 1 3 0 0 - v o N - 7 2 2 1 . d t L . o C g n d i l i u B d e t a i c o s s A e h T e e p u R n a d n i I 9 1 - r a M - 1 3 5 0 - b e F - 2 2 2 1 . d t L i . t v P g n d a r T t a h i r B 1 2 3 4 5 6 : s e t o N E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S r e c ffi O l i a i c n a n F f e h C i . 9 1 0 2 , y a M d n 2 , i a b m u M d r a o B e h t f o f l a h e b n o d n a r o F A L A W A R G A I L A M N A B 9 2 0 0 2 1 0 0 : I N D r o t c e r i D y r a t e r c e S y n a p m o C Y R T S M I . 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S A d n I o t d e t r e v n o c P, A A G e v i t c e p s e r e h t r e d n u d e r a p e r p s t n u o c c a r i e h t r o t c e r i i D g n g a n a M & O E C I A H N S R E E V A R P 4 6 1 5 8 7 1 0 : I N D M A Y N A M A R B U S H S E M A R . d t L . y t P i g r e n n e C h t i w d e t a d i l o s n o c n e e b e v a h . d t L ) y t P ( i m r a F d n W y t i n u m m o C a m m a k i s t i s T d n a . d t L ) y t P ( 1 t c e o r P E R j i n e y o m E a a h k a m A l f o s t n u o c c A . l d t L y g r e n E e b a w e n e R n a h w a W h t i l w d e t a d i l o s n o c n e e b e v a h . l d t L y g r e n E e b a w e n e R n a h w a W l f o s e i r a d i s b u s i l l a f o s t n u o c c A . d t L o c l e N h t i w d e t a d i l o s n o c n e e b e v a h . d t L s e c i v r e S t e n a t a T f o s t n u o c c A . r e w o P a m i r P n a t n a m i l a K T P h t i w d e t a d i l o s n o c n e e b e v a h a n a d r e P a m u s u K a r t i C T P d n a g n u g A h u r u G T P , a n a u B a m i r P a r t i C T P f o s t n u o c c A . d t L . t v P s e r u t n e V r e w o P t n e c s a n e R h t i w d e t a d i l o s n o c n e e b e v a h . d t L . e t P s e r u t n e V r e w o P t n e g r u s e R f o s t n u o c c A . V B s d n a l r e h t e N i l a q s t s i r a j d A h t i w d e t a d i l o s n o c n e e b e v a h C L L a g r o e G i i l a q s t s i r a j d A f o s t n u o c c A . 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In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013, as amended (“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 March 31, 2019, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date. Basis for Opinion We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing (SAs), as specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the ‘Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements’ section of our report. We are independent of the Company in accordance with the ‘Code of Ethics’ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context. We have determined the matters described below to be the key audit matters to be communicated in our report. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the standalone Ind AS financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the standalone Ind AS financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying standalone Ind AS financial statements. Key audit matters How our audit addressed the key audit matter Accrual of Regulatory Deferrals (as described in Note 20 of the financial statements) In the power distribution business of the Company, the tariff is determined by the regulator on cost plus return on equity basis wherein the cost is subject to prudential norms. The Company invoices its customers on the basis of pre-approved tariff which is based on budget and is subject to true ups to be adjusted in the future tariff. • • The Company recognizes revenue on the basis of tariff invoiced to consumers. As the Company is entitled to a fixed return on equity, the Company recognizes regulatory deferral for the shortage / excess compared to the entitled return on equity. The Company has recognized regulatory deferrals of ` 999 crore as at March 31, 2019. Our audit procedures included considering the Company’s accounting policies with respect to accrual of regulatory deferrals and assessing compliance with Ind AS 114 “Regulatory Deferral Accounts” We performed test of controls over accrual of regulatory deferrals through inspection of evidence of performance of these controls. 242 I Standalone Financials 100th Annual Report 2018-19 Key audit matters How our audit addressed the key audit matter Regulatory deferrals are determined based on tariff regulations and past tariff orders and are subject to verification and approval by the regulators. Further the costs incurred are subject to prudential checks and prescribed norms. Significant judgements are made in determining the regulatory deferrals including interpretation of tariff regulations. Further certain disallowances of claims have been challenged by the Company before higher authorities. Accrual of regulatory deferrals is a key audit matter considering the significance of the amount of regulatory deferrals and the significant judgements involved in the determination of accruals. • • • • We performed the following tests of details: • independence, objectivity and Evaluated the key assumptions used by the Company by comparing it with prior years, past precedents and the opinion of management’s expert. Considered the competence of management’s expert. For tariff orders received by the Company, we have assessed the impact recognized by the Company and for matters challenged by the Company, we have also assessed the management’s evaluation of the likely outcome of the dispute based on past precedents and / or advice of management’s expert. We have assessed the disclosures in accordance with the requirements of Ind AS 114 “Regulatory Deferral Accounts”. Recognition of tax credits (as described in Note 35 of the financial statements) The Company has recognized Minimum Alternate Tax (MAT) credit receivable of ` 517.51 crore and unrecognized MAT credit receivable of ` 149.19 crore as at 31st March 2019. The Company also has unrecognized other deferred tax assets of ` 306.94 crore on provision for diminution in value of investment classified as asset held for sale. The recognition of MAT credit and deferred tax assets (together referred to as “tax credits” hereinafter) is a key audit matter as the recoverability of such tax credits within the allowed time frame involves significant estimate of the financial projections, availability of sufficient taxable income in the future and significant judgements in the interpretation of tax regulations and tax positions adopted by the Company. • • • Our audit procedures included considering Company’s accounting policies with respect to recognition of tax credits in accordance with Ind AS 12 “Income Taxes” We performed test of controls over recognition of tax credits through inspection of evidence of performance of these controls. We performed the following tests of details: • We involved our tax specialists who evaluated the Company’s tax positions by comparing it with prior years and past precedents. • We discussed the future business plans and financial projections with the Company. • We assessed the management’s long term financial projections and the key assumptions used in the projections by comparing it to the approved business plan and projections used for impairment assessment where applicable. Impairment of Assets (as described in Note 5 and 8 of the financial statements) • We have assessed the disclosures in accordance with the requirements of Ind AS 12 “Income Taxes”. At the end of every reporting period, the Company assesses whether there is any indication that an asset or cash generating unit (CGU) may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset or CGU. The determination of recoverable amount, being the higher of fair value less costs to sell and value-in-use involves significant estimates, assumptions and judgements of the long term financial projections. • • • During the earlier years, the Company has recognized impairment provision with respect to Mundra CGU (including coal mines and related infrastructure), hydro power plant in Georgia and a generating unit in Trombay. During the year, as the indication exists, the Company has reassessed its impairment assessment with respect to the specified CGUs. Impairment of assets is a key audit matter considering the significance of the carrying value, long term estimation and the significant judgements involved in the impairment assessment. impairment Our audit procedures included considering the Company’s accounting policies with respect to in accordance with Ind AS 36 “Impairment of assets”. We performed test of controls over impairment process through inspection of evidence of performance of these controls. We performed the following tests of details: the management’s • We obtained assessment. impairment • We evaluated the key assumptions including projected generation, coal prices, exchange rate, energy prices post power purchase agreement period and weighted average cost of capital by comparing them with prior years and external data, where available. • We have obtained and evaluated the sensitivity analysis. • We assessed the disclosures in accordance with Ind AS 36 “Impairment of assets”. Standalone Financials I 243 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Key audit matters How our audit addressed the key audit matter Related party transactions (as described in Note 19 and 41 of the standalone Ind AS financial statements) During the year, the Company has sold its investments in shares of Tata Communications Limited and Panatone Finvest Limited to Tata Sons Private Limited for a total consideration of ` 1,542.61 crore and ` 613.49 crore respectively. Further, during the previous year, the Board of Directors of the Company had approved sale of its Strategic Engineering Division (SED) to Tata Advanced Systems Limited, a wholly owned subsidiary of Tata Sons Private Limited at an enterprise valuation of `2,230 crore (including `1,190 crore contingent upon achieving certain milestones). The transaction is subject to regulatory and necessary approvals. Determination of transaction price for such related party transactions outside the normal course of business is a key audit matter considering the significance of the transaction value and the significant judgements involved in determining the transaction value. • • • • Our audit procedures the compliance with the various requirements for entering in to such related party transactions. included considering We performed test of controls over related party transactions inspection of evidence of performance of these controls. through We performed the following tests of details: • We have read the valuation reports and fairness opinion obtained from independent valuers and assessed the objectivity and competence of the independent valuers. • We have read the approvals obtained from Audit Committee, Board of Directors, Shareholders and all other regulatory approvals for the transactions. We have assessed the disclosures in accordance with Ind AS 24 “Related Party Disclosures”. Other Information The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone Ind AS financial statements and our auditor’s report thereon. Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management 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 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) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 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 standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone Ind AS financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those Board of Directors are also responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements. 244 I Standalone Financials 100th Annual Report 2018-19 As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • • • • • Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditor’s Report) Order, 2016 (“the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the “Annexure 1” a statement on the matters specified in paragraphs 3 and 4 of the Order. 2. As required by Section 143(3) of the Act, we report that: (a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit; (b) (c) (d) (e) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books; 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; In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended; On the basis of the written representations received from the directors as on March 31 2019 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2019 from being appointed as a director in terms of Section 164 (2) of the Act; (f ) With respect to the adequacy of the internal financial controls over financial reporting of the Company with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in “Annexure 2” to this report; (g) In our opinion, the managerial remuneration for the year ended March 31, 2019 has been paid / provided by the Company to its directors is in accordance with the provisions of section 197 read with Schedule V to the Act; E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 245 The Tata Power Company Limited (h) 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: i. ii. iii. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements – Refer Note 38 to the standalone Ind AS financial 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 – Refer Note 25 to the standalone Ind AS financial statements; There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 per Sudhir Soni Partner Membership Number: 41870 UDIN: 19041870AAAAAJ8566 Place : Mumbai Date : 2nd May, 2019 246 I Standalone Financials 100th Annual Report 2018-19 (b) (c) Annexure 1 to the Independent Auditor’s Report referred to in paragraph 1 under the heading ‘Report on Other Legal and Regulatory Requirements’ of our report of even date on the standalone Ind AS financial statements of The Tata Power Company Limited (i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification. According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the Company, except for: a. immovable properties aggregating to ` 0.88 crore acquired during merger of Chemical Terminal Trombay Limited in the previous year for which registration of title of deeds is in progress; immovable properties aggregating to ` 26.54 crore acquired in earlier years for which registration of title of deeds is in progress; immovable properties aggregating to ` 27.57 crore for which the title deed is in dispute and pending resolution as at March 31, 2019; b. c. Further registration of title deed is in progress in respect of leasehold land classified under Asset held for sale aggregating to ` 215.56 crore (Gross value ` 225.65 crore). According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are pledged with the banks and not available with the Company as described in note 23 and 28 of financials statements. The same has not been independently confirmed by the bank and hence we are unable to comment on the same. (ii) (iii) (iv) (v) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification. (a) The Company has granted loans to fourteen companies covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loans are not prejudicial to the Company’s interest. The Company has granted loans to fourteen companies covered in the register maintained under section 189 of the Companies Act, 2013. The schedule of repayment of principal and payment of interest has been stipulated for the loans granted and the repayment/receipts are regular. There are no amounts of loans granted to companies, firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 which are overdue for more than ninety days. (b) (c) In our opinion and according to the information and explanations given to us, provisions of section 185 and 186 of the Companies Act 2013 in respect of loans to directors including entities in which they are interested and in respect of loans and advances given, investments made, guarantees and securities given have been complied with by the Company. The Company has not accepted any deposits within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable. We are informed by the management that no order has been passed by the Company Law Board, National Company Law Tribunal, Reserve Bank of India or any Court or any other Tribunal. (vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to generation of electricity and arms and ammunitions, electricals or electronic machinery and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same. (vii) According to the information and explanations given to us in respect of statutory dues: (a) (b) (c) Undisputed statutory dues including provident fund, employees’ state insurance, income-tax, duty of custom, goods and service tax, cess and other statutory dues have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees’ state insurance, income tax, service tax, sales tax, custom duty, excise duty, value added tax, goods and service tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. According to the records of the Company, the dues of income tax, sales tax, service tax, custom duty, excise duty, value added tax and cess on account of any dispute are as follows: Standalone Financials I 247 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Name of statute The Customs Act, 1962 Nature of the Dues Customs Duty Amount (` crores) Period to which the amount relates 34.43 2011-12 and 2012-13 3.60 2004-05 to 2005-06 1.37 2004-05 to 2005-06 and Forum where the dispute is pending Tribunal Tribunal Principal Commissioner Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002 Entry tax 709.17 2005-06 and 2008-09 2009-10 1,000.22 2006-07, 2007-08, 2010-11, 2011-12 Supreme Court Tribunal The Central Excise Act, 1944 The Water (Prevention & Control of Pollution) Cess Act 1977 The Finance Act, 1994 Excise Duty Cess Service Tax 325.79 2009-10, 2012-13 and Joint Commissioner Appeal 2013-14 0.81 1993-94 to 1995-96 Tribunal 1.13 2009-10 375.29 July 2012 to June 2017 5.86 2011-12 to 2014-15 0.25 2007-08 Chairman, Maharashtra Pollution Control Board (MPCB) High Court Tribunal Joint Commissioner appeal (viii) (ix) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution, bank or government or dues to debenture holders. In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by way of debt instruments in the nature of debentures and term loans for the purposes for which they were raised. According to the information and explanations given by the management, the Company has not raised any money by way of initial public offer or further public offer. (x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the Company or no material fraud on the Company by the officers and employees of the Company has been noticed or reported during the year. (xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013. (xii) In our opinion, the Company is not a Nidhi company. Therefore, the provisions of clause 3(xii) of the Order are not applicable to the Company and hence not commented upon. (xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards. (xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the Company and, not commented upon. (xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013. (xvi) According to the information and explanations given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 per Sudhir Soni Partner Membership Number: 41870 UDIN: 19041870AAAAAJ8566 Place : Mumbai Date : 2nd May, 2019 248 I Standalone Financials 100th Annual Report 2018-19 Annexure 2 to the Independent Auditor’s Report of even date on the Standalone Ind AS Financial Statements of the Tata Power Company Limited Report on the Internal Financial Controls 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 March 31, 2019 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 (the “Guidance Note”) issued by the Institute of Chartered Accountants of India. 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 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 with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls and, both issued by the Institute of Chartered Accountants of India. 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 with reference to these standalone financial statements 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 over financial reporting with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone financial statements, 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 audit opinion on the internal financial controls over financial reporting with reference to these standalone financial statements. Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Financial Statements A company’s internal financial control over financial reporting with reference to these standalone financial statements 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 with reference to these standalone financial statements 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 With Reference to these Standalone Financial Statements Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone financial statements, 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 with reference to these standalone Ind AS financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financial statements were operating effectively as at March 31, 2019, 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. For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003 per Sudhir Soni Partner Membership Number: 41870 UDIN: 19041870AAAAAJ8566 Place : Mumbai Date : 2nd May, 2019 Standalone Financials I 249 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Balance Sheet as at 31st March, 2019 Page Notes As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore ASSETS Non-current Assets (a) Property, Plant and Equipment .................................................................................................................................. (b) Capital Work-in-Progress (Refer Note 39 b.) ........................................................................................................... Investment Property ...................................................................................................................................................... (c) Intangible Assets ............................................................................................................................................................. (d) Financial Assets ................................................................................................................................................................ (e) Investments .......................................................................................................................................................... (i) Trade Receivables ............................................................................................................................................... (ii) Loans ....................................................................................................................................................................... (iii) Finance Lease Receivables .............................................................................................................................. (iv) Other Financial Assets ...................................................................................................................................... (v) (f) Non-current Tax Assets (Net) ....................................................................................................................................... (g) Other Non-current Assets ............................................................................................................................................ Total Non-current Assets ..................................................................................................................................................... Current Assets (a) (b) Financial Assets Inventories ......................................................................................................................................................................... Investments .......................................................................................................................................................... (i) Trade Receivables ............................................................................................................................................... (ii) Unbilled Revenue ............................................................................................................................................... (iii) Cash and Cash Equivalents ............................................................................................................................. (iv) Bank Balances other than (iv) above ........................................................................................................... (v) Loans ....................................................................................................................................................................... (vi) (vii) Finance Lease Receivables .............................................................................................................................. (viii) Other Financial Assets ...................................................................................................................................... (c) Other Current Assets ...................................................................................................................................................... Total Current Assets ............................................................................................................................................................... Assets Classified as Held For Sale ........................................................................................................................................ Total Assets before Regulatory Deferral Account ................................................................................................... Regulatory Deferral Account - Assets ........................................................................................................................... TOTAL ASSETS ....................................................................................................................................................................................... EQUITY AND LIABILITIES Equity (a) Equity Share Capital ....................................................................................................................................................... (b) Unsecured Perpetual Securities ................................................................................................................................. (c) Other Equity ...................................................................................................................................................................... Total Equity ................................................................................................................................................................................ LIABILITIES 5 6 7 8 9 10 11 12 13 14 15 16 9 17 18 10 11 12 14 19a 20 21a 21b 22 Non-current Liabilities Financial Liabilities (a) (i) Borrowings ................................................................................................................................................................ (ii) Trade Payables ......................................................................................................................................................... (a) Total outstanding dues of micro enterprises and small enterprises ........................................... (b) Total outstanding dues of creditors other than micro enterprises and small enterprises .. (iii) Other Financial Liabilities .................................................................................................................................... (b) Provisions ........................................................................................................................................................................... (c) Deferred Tax Liabilities (Net) ....................................................................................................................................... 26 & 35 (d) Other Non-current Liabilities ...................................................................................................................................... Total Non-current Liabilities .............................................................................................................................................. Current Liabilities (a) 24 25 36 27 23 Financial Liabilities (i) Borrowings ................................................................................................................................................................ (ii) Trade Payables ......................................................................................................................................................... (a) Total outstanding dues of micro enterprises and small enterprises ........................................... (b) Total outstanding dues of creditors other than micro enterprises and small enterprises .. (iii) Other Financial Liabilities .................................................................................................................................... (b) Current Tax Liabilities (Net) .......................................................................................................................................... (c) Provisions ........................................................................................................................................................................... (d) Other Current Liabilities ................................................................................................................................................ Total Current Liabilities ........................................................................................................................................................ Liabilities directly associated with Assets Classified as Held For Sale .................................................................... Total Liabilities before Regulatory Deferral Account ........................................................................................... Regulatory Deferral Account - Liability ........................................................................................................................ TOTAL EQUITY AND LIABILITIES .................................................................................................................................................. 28 36 24 29 25 27 19b 20 260 263 264 265 268 269 270 271 271 272 273 273 268 274 275 269 270 271 272 275 278 279 279 280 282 304 284 285 290 291 291 304 284 291 285 291 276 278 7,545.96 368.10 Nil 83.89 21,270.77 185.76 51.35 554.27 2.89 68.65 977.10 31,108.74 579.51 42.00 1,256.44 41.56 75.94 19.85 119.20 37.58 96.06 952.11 3,220.25 2,806.59 37,135.58 999.00 38,134.58 270.50 1,500.00 13,919.10 15,689.60 8,749.72 Nil 22.75 42.76 195.55 583.49 183.54 9,777.81 6,731.80 3.96 1,098.18 2,895.43 107.67 14.74 849.12 11,700.90 966.27 22,444.98 Nil 38,134.58 7,873.55 418.78 Nil 93.18 18,382.45 185.76 68.90 574.76 Nil Nil 1,235.70 28,833.08 474.22 10.00 972.05 53.75 42.94 15.48 402.92 34.27 297.78 309.25 2,612.66 3,261.14 34,706.88 1,795.19 36,502.07 270.50 1,500.00 12,718.03 14,488.53 8,123.84 Nil 21.00 44.74 182.10 235.99 246.49 8,854.16 4,326.46 3.72 1,101.96 5,047.98 107.67 15.44 1,193.59 11,796.82 877.56 21,528.54 485.00 36,502.07 See accompanying notes to the Financial Statements As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. 250 I Standalone Financials PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary 100th Annual Report 2018-19 Statement of Profit and Loss for the year ended 31st March, 2019 For the year ended 31st March, 2019 ` crore 7,932.83 516.35 8,449.18 Revenue from Operations ............................................................................................................................................ Other Income .................................................................................................................................................................... Total Income .................................................................................................................................................................... Expenses 292 296 Notes Page 30 31 I II III IV V VI 297 297 260 298 278 278 260 267 299 323 299 299 299 299 299 Cost of Power Purchased .................................................................................................................................... Cost of Fuel (Refer Note 44) .................................................................................................................................. Transmission Charges .......................................................................................................................................... Employee Benefits Expense (Net) .................................................................................................................... Finance Costs (Refer Note 44) .............................................................................................................................. Depreciation and Amortisation Expenses .................................................................................................... 5, 6 & 7 Other Expenses ...................................................................................................................................................... Total Expenses ................................................................................................................................................................ Profit/(Loss) Before Movement in Regulatory Deferral Balance, Exceptional Items and Tax .. Add/(Less): Net Movement in Regulatory Deferral Balance (Refer Note 44) ........................................ Add/(Less): Net Movement in Regulatory Deferral Balance in respect of earlier years ................. 20 20 32 33 34 Profit/(Loss) Before Exceptional Items and Tax .............................................................................................. Add/(Less): Exceptional Items ............................................................................................................................ Impairment of Property, Plant and Equipment ............................................................................... Impairment of Non-current Investments .......................................................................................... 8a & b Damages towards Contractual Obligation ....................................................................................... Provision for Contingencies ................................................................................................................... Gain on Sale of Investment in Associates .......................................................................................... 34a 44 34a 5 VII Profit/(Loss) Before Tax .............................................................................................................................................. VIII Tax Expense/(Credit) Current Tax .............................................................................................................................................................. Deferred Tax ........................................................................................................................................................... Deferred Tax relating to earlier years ............................................................................................................. Deferred Tax (Recoverable)/Payable ............................................................................................................... 35 35 35 35 IX X XI Profit/(Loss) for the Year from Continuing Operations ............................................................................... Profit/(Loss) before tax from Discontinued Operations............................................................................. Tax Expense/(Credit) on Discontinued Operations Current Tax .............................................................................................................................................................. Deferred Tax ........................................................................................................................................................... Tax Expense/(Credit) on Discontinued Operations ...................................................................................... XII Profit/(Loss) for the Year from Discontinued Operations .......................................................................... XIII Profit/(Loss) for the Year ............................................................................................................................................ XIV Other Comprehensive Income/(Expense) - Continuing Operations 19c 276 19c 276 Add/(Less): (i) Items that will not be reclassified to profit or loss Remeasurement of the Defined Benefit Plans .............................................................................. 25 (2.3) (a) (b) Equity Instruments classified at FVTOCI .......................................................................................... (c) Gain on sale of Investment classified at FVTOCI ........................................................................... (d) Assets Classified as Held For Sale 34a - Equity Instruments classified at FVTOCI........................................................................................ (ii) Tax relating to items that will not be reclassified to profit or loss (a) Current Tax ................................................................................................................................................. (b) Deferred Tax ............................................................................................................................................... 35 35 XV Other Comprehensive Income/(Expense) - Discontinued Operations Add/(Less): (i) (ii) Items that will not be reclassified to profit or loss................................................................................... 25 (2.3) Income tax relating to items that will not be reclassified to profit or loss...................................... 287 299 299 299 287 Other Comprehensive Income/(Expense) For The Year .............................................................................. XVI Total Comprehensive Income for the year (XIII + XIV + XV) ..................................................................... XVII Basic and Diluted Earnings Per Equity Share (of ` 1/- each) (`) From Continuing Operations before net movement in regulatory deferral balances ................ (i) (ii) From Continuing Operations after net movement in regulatory deferral balances .................... (iii) From Discontinued Operations ....................................................................................................................... (iv) Total Operations after net movement in regulatory deferral balances ............................................ See accompanying notes to the Financial Statements 40 308 As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. For the year ended 31st March, 2018 ` crore 7,536.59 929.34 8,465.93 412.05 2,776.40 279.88 596.69 1,431.38 663.21 877.52 7,037.13 1,428.80 (236.00) Nil (236.00) 1,192.80 (100.00) (4,230.32) (107.08) Nil Nil (4,437.40) (3,244.60) 224.26 (844.37) Nil 454.29 (165.82) (3,078.78) (85.87) (17.36) 3.23 (14.13) (71.74) (3,150.52) (12.38) (400.44) 99.59 Nil (34.67) 391.99 44.09 0.85 Nil 0.85 44.94 (3,105.58) (11.21) (11.79) (0.26) (12.05) 457.02 3,168.27 248.23 637.57 1,500.35 632.70 801.87 7,446.01 1,003.17 (519.03) 274.26 (244.77) 758.40 Nil Nil Nil (45.00) 1,212.99 1,167.99 1,926.39 171.00 331.58 10.00 (420.61) 91.97 1,834.42 (191.82) (71.92) 5.94 (65.98) (125.84) 1,708.58 (20.00) 0.17 0.01 (31.05) 6.99 (0.02) (43.90) (1.14) 0.40 (0.74) (44.64) 1,663.94 6.95 6.36 (0.46) 5.90 For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary Standalone Financials I 251 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Statement of Cash Flows for the year ended 31st March, 2019 For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore A. Cash Flow from Operating Activities Profit/(Loss) before tax from Continuing Operations ................................................................................................ Profit/(Loss) before tax from Discontinued Operations ........................................................................................... 1,926.39 (191.82) (3,244.60) (85.87) Adjustments to reconcile Profit Before Tax to Net Cash Flows: Depreciation and Amortisation Expense ............................................................................................................. Interest Income ............................................................................................................................................................. Delayed Payment Charges ........................................................................................................................................ Dividend Income .......................................................................................................................................................... Finance Cost (Net of Capitalisation) ...................................................................................................................... (Gain)/Loss on Disposal of Property, Plant and Equipment (Net) ............................................................... (Gain)/Loss on Sale/Fair Value of Current Investment measured at FVTPL ............................................. (Gain)/Loss on Sale of Non- Current Investments (Including fair value change) .................................. Amortisation of Premium Paid on Leasehold Land ......................................................................................... Guarantee Commission from Subsidiaries and Joint Ventures .................................................................... Amortisation of Service Line Contributions ....................................................................................................... Transfer to Contingency Reserve ............................................................................................................................ Allowance for Doubtful Debts and Advances (Net) ......................................................................................... Impairment of Property, Plant and Equipment ................................................................................................. Impairment of Non-current Investments ............................................................................................................ Impairment of Non-current Investments in Joint Ventures .......................................................................... (Gain)/Loss on Sale of Investment in Associates ............................................................................................... Damages towards Contractual Obligation ......................................................................................................... Impairment of Non-current Assets ........................................................................................................................ Effect of Exchange Fluctuation (Net) ..................................................................................................................... Working Capital Adjustments: Adjustment for (increase)/decrease in Assets: Inventories ...................................................................................................................................................................... Trade Receivables ......................................................................................................................................................... Finance Lease Receivables ........................................................................................................................................ Loans- Current ............................................................................................................................................................... Loans-Non Current....................................................................................................................................................... Other Current Assets ................................................................................................................................................... Other Non-current Assets ......................................................................................................................................... Unbilled Revenue ......................................................................................................................................................... Other Financial Assets - Current ............................................................................................................................. Other Financial Assets - Non-current .................................................................................................................... Regulatory Deferral Account - Assets ................................................................................................................... Adjustments for increase / (decrease) in Liabilities: Trade Payables ............................................................................................................................................................... Other Current Liabilities ............................................................................................................................................. Other Non-current Liabilities ................................................................................................................................... Current Provisions ........................................................................................................................................................ Non-current Provisions .............................................................................................................................................. Other Financial Liabilities - Current ....................................................................................................................... Other Financial Liabilities - Non Current .............................................................................................................. Regulatory Deferral Account - Liability ................................................................................................................ 632.70 (84.91) (6.34) (383.91) 1,536.68 (10.81) (6.29) (0.88) 2.64 (20.95) (7.46) 16.00 19.11 Nil Nil Nil (1,212.99) Nil Nil 4.54 (107.14) (251.20) 17.18 (0.41) 4.09 (324.00) 270.34 66.23 (0.40) 1.10 894.37 (34.77) (382.37) (66.98) (40.72) 24.62 (13.37) 1.38 (485.00) Cash flow from/(used in) Operations .............................................................................................................................. Income tax Paid ............................................................................................................................................................. Net cash flows from/(used) in Operating Activities............................................................................................. A B. Cash Flow from Investing Activities Capital expenditure on Property, Plant and Equipment (including capital advances) ................................. Proceeds from sale of Property, Plant and Equipment ............................................................................................. Purchase of Non-current Investments Subsidiaries .................................................................................................................................................................... Joint Ventures ................................................................................................................................................................ Others ............................................................................................................................................................................... Carried Over........ 252 I Standalone Financials 694.39 (132.58) (6.01) (747.90) 1,440.23 (8.39) (2.36) Nil 0.31 (23.55) (8.99) 14.00 (0.39) 100.00 4,230.32 (2.90) Nil 107.08 6.00 (6.08) 477.13 2,211.70 5,653.18 2,322.71 94.57 (48.37) 3.60 (0.08) 11.15 3.54 85.09 192.11 21.14 (6.29) 456.16 570.16 2,781.86 812.62 3,135.33 (118.90) 18.02 65.02 (11.11) 30.40 (6.86) 0.17 (171.00) (997.21) 1,784.65 (101.31) 1,683.34 (522.39) 32.35 (3,425.99) Nil (25.00) (2,257.69) (194.26) 2,941.07 (173.58) 2,767.49 (665.00) 15.54 (1,328.01) (0.17) (104.65) (685.20) 100th Annual Report 2018-19 Statement of Cash Flows for the year ended 31st March, 2019 For the year ended 31st March, 2019 ` crore (2,257.69) Brought Froward........ For the year ended 31st March, 2018 ` crore (685.20) Proceeds from Sale of Non-current Investments Subsidiaries .................................................................................................................................................................... Associates ........................................................................................................................................................................ Other ................................................................................................................................................................................. Proceeds from Sale of Current Investments (Net) ...................................................................................................... Interest Received Subsidiaries .................................................................................................................................................................... Joint Ventures ................................................................................................................................................................ Others ............................................................................................................................................................................... Delayed Payment Charges Received ............................................................................................................................... Loans given Subsidiaries ...................................................................................................................................................................... Joint Ventures .................................................................................................................................................................. Associates ......................................................................................................................................................................... Loans repaid Subsidiaries ...................................................................................................................................................................... Joint Ventures .................................................................................................................................................................. Associates ......................................................................................................................................................................... Dividend Received Subsidiaries ...................................................................................................................................................................... Joint Ventures .................................................................................................................................................................. Associates ......................................................................................................................................................................... Others ................................................................................................................................................................................. Guarantee Commission Received .................................................................................................................................... Amount (paid)/received back under Contractual Obligation ................................................................................ Bank Balance not considered as Cash and Cash Equivalents (with maturity more than three months) Net cash flow from/(used) in Investing Activities................................................................................................. B C. Cash Flow from Financing Activities Increase in Capital/Service Line Contributions ........................................................................................................... Distribution on Unsecured Perpetual Securities ......................................................................................................... Interest and Other Borrowing Costs ................................................................................................................................ Proceeds from Non-current Borrowings ........................................................................................................................ Repayment of Non-current Borrowings ......................................................................................................................... Proceeds from Current Borrowings ................................................................................................................................. Repayment of Current Borrowings .................................................................................................................................. Dividends Paid ......................................................................................................................................................................... Dividend Distribution Tax .................................................................................................................................................... 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 as at 31st March (Closing Balance) .................................................................... C Notes: 1. Cash and Cash Equivalents include: (a) Balances with banks In current accounts ........................................................................................................................................... (b) Bank Overdraft ................................................................................................................................................... Cash and Cash Equivalents related to Continuing Operations ................................................. (a) Balances with banks In current accounts ........................................................................................................................................... (b) Book Overdraft ................................................................................................................................................... Cash and Cash Equivalents relating to Discontinued Operations .......................................... See accompanying notes to the Financial Statements As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. 255.00 2,157.67 0.10 16.29 77.40 Nil 44.96 6.34 (2,359.61) (1.00) (1.00) 2,621.97 1.00 1.00 428.95 104.49 9.68 5.43 18.76 Nil (2.95) (556.55) 11.49 (171.00) (1,591.08) 3,337.09 (4,729.41) 22,729.91 (20,231.28) (351.99) Nil (996.27) 130.52 (50.66) 79.86 Nil Nil 206.81 132.44 29.90 0.92 99.99 6.01 (1,377.12) (0.07) Nil 974.86 Nil Nil 501.94 66.38 15.31 10.63 28.92 31.47 (1.01) (1,354.91) 11.17 (171.00) (1,578.29) 2,408.96 (3,697.23) 11,274.46 (9,468.45) (350.61) (33.81) (1,604.80) (192.22) 141.56 (50.66) As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 75.94 (2.19) 73.75 6.13 (0.02) 6.11 79.86 42.94 (95.44) (52.50) 1.88 (0.04) 1.84 (50.66) For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary Standalone Financials I 253 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Statement of Changes in Equity A. Equity Share Capital Balance as at 1st April, 2017 ....................................................................................................................................... Issued during the year ...................................................................................................................................................... Balance as at 31st March, 2018 ................................................................................................................................. Issued during the year ...................................................................................................................................................... Balance as at 31st March, 2019 ................................................................................................................................. B. Unsecured Perpetual Securities Balance as at 1st April, 2017 ....................................................................................................................................... Issued during the year ...................................................................................................................................................... Balance as at 31st March, 2018 ................................................................................................................................. Issued during the year ...................................................................................................................................................... Balance as at 31st March, 2019 ................................................................................................................................. No. of Shares 270,47,73,510 Nil 270,47,73,510 Nil 270,47,73,510 No. of Securities 15,000 Nil 15,000 Nil 15,000 C. Other Equity Description Reserves and Surplus General Reserve Securities Premium Debenture Redemption Reserve Capital Redemption Reserve Capital Reserve Statutory Reserve Retained Earnings ` crore Amount 270.50 Nil 270.50 Nil 270.50 ` crore Amount 1,500.00 Nil 1,500.00 Nil 1,500.00 ` crore Total 16,321.47 (3,150.52) Item of Other Comprehensive Income Equity Instrument through Other Comprehensive Income (253.40) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 3,853.98 Nil 5,634.98 Nil Balance as at 1st April, 2017 ........................ Profit/(Loss) for the year .................................... Other Comprehensive Income/(Expense) for the year (Net of Tax) ..................................... Total Comprehensive Income ..................... Dividend paid (including tax on dividend) Transfer to Debenture Redemption Reserve .................................................................... Transfer to Retained Earnings on Sale of Shares ...................................................................... Distribution on Unsecured Perpetual Securities (Net of Tax) ......................................... Nil Balance as at 31st March, 2018 .................. 3,853.98 Balance as at 1st April, 2018 ........................ 3,853.98 Profit/(Loss) for the year .................................... Nil Other Comprehensive Income/(Expense) for the year (Net of Tax) ..................................... Total Comprehensive Income ..................... 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) ......................................... Nil Balance as at 31st March, 2019 .................. 3,853.98 5,634.98 See accompanying notes to the Financial Statements Nil 5,634.98 5,634.98 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 1,000.90 Nil 1.85 Nil 61.66 Nil 660.08 Nil 5,361.42 (3,150.52) Nil Nil Nil (0.29) Nil Nil 1,000.61 1,000.61 Nil Nil Nil Nil Nil (578.66) Nil 421.95 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil (9.08) Nil Nil (3,159.60) (385.80) Nil 0.29 Nil 54.02 54.02 Nil Nil 44.94 (3,105.58) (385.80) Nil Nil 174.74 (174.74) Nil Nil 1.85 1.85 Nil Nil 61.66 61.66 Nil (112.06) Nil 660.08 1,878.99 660.08 1,878.99 1,708.58 Nil Nil (112.06) (374.12) 12,718.03 12,718.03 (374.12) 1,708.58 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil (13.75) Nil 1,694.83 Nil Nil Nil (735.49) (351.99) 578.66 (30.89) (30.89) (44.64) 1,663.94 735.49 Nil Nil (351.99) Nil Nil Nil 1.85 Nil 61.66 Nil (110.88) 660.08 2,954.12 Nil (110.88) 330.48 13,919.10 As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. 254 I Standalone Financials PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary 100th Annual Report 2018-19 Notes to the Financial Statements 1. 2.1 Corporate Information: 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 Principal business of the Company is generation, transmission and distribution of electricity. The Company was amongst the pioneers in generation of electricity in India more than a century ago. The Company has an installed generation capacity of 2,804 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. 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 (as amended from time to time). 2.2 Basis of preparation and presentation 3. 3.1 The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value - - - derivative financial instruments; certain financial assets and liabilities measured at fair value (Refer accounting policy regarding financial instruments); employee benefit expenses (Refer Note 32 for Accounting policy). Other Significant Accounting Policies Foreign Currencies The functional currency of the Company is Indian Rupee (₹). 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 the statement of profit and 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. 3.2 Current versus non-current classification The Company presents assets and liabilities in the balance sheet based on current / non-current classification. An asset is treated as current when it is: - - - - expected to be realised or intended to be sold or consumed in normal operating cycle, held primarily for the purpose of trading, expected to be realised within twelve months after the reporting period, or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: - - - - The Company classifies all other liabilities as non-current. it is expected to be settled in normal operating cycle, it is held primarily for the purpose of trading, it is due to be settled within twelve months after the reporting period, or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle. 3.3 Financial Instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 255 The Tata Power Company Limited Notes to the Financial Statements 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 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 measured at fair value through profit or loss are recognised immediately in the statement of profit and loss. 3.4 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. 3.5 Financial assets at amortised cost Financial assets are subsequently measured at amortised cost using the effective interest rate method 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. 3.5.1 Financial assets at fair value through other comprehensive income (FVTOCI) 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 cash flows and selling financial assets 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. 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. 3.5.2 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. 3.5.3 Investment in Subsidiaries, Jointly Controlled Entities and Associates Investment in subsidiaries, jointly controlled entities and associates are measured at cost less impairment as per Ind AS 27 - Separate Financial Statements. Impairment of investments: The Company reviews its carrying value of investments carried at 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 in the statement of profit and loss. 3.5.4 Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company’s balance sheet) when: - - the right to receive cash flows from the asset have expired, or the Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. 256 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements When the Company has transferred its right to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. 3.5.5 Impairment of financial assets 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 contract assets and / or 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. Financial liabilities and equity instruments 3.6 3.6.1 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. 3.6.2 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 the Company are recognised at the proceeds received, net of direct issue costs. 3.6.3 Financial liabilities All financial liabilities are subsequently measured at amortised cost using the effective interest method. Gains and losses are recognised in statement of profit and loss when the liabilities are derecognised as well as through the Effective Interest Rate (EIR) amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. 3.6.4 Derecognition A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss. 3.6.5 Financial guarantee contracts Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation. 3.7 Derivative financial instruments The Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts. 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 statement of profit and loss immediately. 3.8 Reclassification of financial assets and liabilities The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company’s senior management determines change in the business model as a result of external or internal changes which are significant to the Company’s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 257 The Tata Power Company Limited 3.9 Offsetting of financial instruments Notes to the Financial Statements Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously. 3.10 Leasing arrangement The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. The Company as lessee A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term. 3.11 Standards issued but not yet effective The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective. Ind AS 116 - Leases Ind AS 116 Leases was notified in March 2019 and it replaces Ind AS 17 Leases. Ind AS 116 is effective for annual periods beginning on or after 1st April, 2019. It sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Ind AS 116 requires lessees and lessors to make more extensive disclosures than under Ind AS 17. The Company is in the process of evaluating the requirements of the standard and its impact on its financial statements. Ind AS 12 – Income taxes (amendments relating to income tax consequences of dividend and uncertainty over income tax treatments) The amendment relating to income tax consequences of dividend clarify that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events. The company does not expect any impact from this pronouncement. It is relevant to note that the amendment does not amend situations where the entity pays a tax on dividend which is effectively a portion of dividends paid to taxation authorities on behalf of shareholders. Such amount paid or payable to taxation authorities continues to be charged to equity as part of dividend in accordance with Ind AS 12. The amendment to Appendix C of Ind AS 12 specifies that the amendment is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. It outlines the following: (1) the entity has to use judgement, to determine whether each tax treatment should be considered separately or whether some can be considered together. The decision should be based on the approach which provides better predictions of the resolution of the uncertainty (2) the entity is to assume that the taxation authority will have full knowledge of all relevant information while examining any amount (3) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The Company does not expect any significant impact of the amendment on its financial statements. Ind AS 109 – Prepayment Features with Negative Compensation The amendments relate to the existing requirements in Ind AS 109 regarding termination rights in order to allow measurement at amortised cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of negative compensation payments. The Company does not expect this amendment to have any impact on its financial statements. 258 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements Ind AS 19 – Plan Amendment, Curtailment or Settlement The amendments clarify that if a plan amendment, curtailment or settlement occurs, it is mandatory that the current service cost and the net interest for the period after the re-measurement are determined using the assumptions used for the re- measurement. In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The Company does not expect this amendment to have any significant impact on its financial statements. Ind AS 23 – Borrowing Costs The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate on general borrowings. The Company does not expect any impact from this amendment. Ind AS 28 – Long-term Interests in Associates and Joint Ventures The amendments clarify that an entity applies Ind AS 109 Financial Instruments, to long-term interests in an associate or joint venture that form part of the net investment in the associate or joint venture but to which the equity method is not applied. The company does not currently have any such long-term interests in associates and joint ventures. Ind AS 103 – Business Combinations and Ind AS 111 - Joint Arrangements The amendments to Ind AS 103 relating to re-measurement clarify that when an entity obtains control of a business that is a joint operation, it re-measures previously held interests in that business. The amendments to Ind AS 111 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not re-measure previously held interests in that business. The Company will apply the pronouncement if and when it obtains control / joint control of a business that is a joint operation. 3.12 Dividend distribution to equity shareholders of the Company The Company recognises a liability to make dividend distributions to its equity holders when the distribution is authorised and the distribution is no longer at its discretion. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity. In case of Interim Dividend, the liability is recognised on its declaration by the Board of Directors. 3.13 Changes in accounting policies and disclosures (a) Revenue from delayed payment charges Delayed payment charges were hitherto recognised only when they are realised/recovered. With effect from 1st April, 2018, the Company has revised its accounting policy to recognise Delayed Payment Charges (DPC) on accrual basis based on contractual terms and an assessment of certainty of realisation. Management believes that this policy results in the financial statements providing reliable and more relevant information about the effects of transaction on the Company’s financial position and performance. The revision in accounting policy has been applied retrospectively and does not have any significant impact on current year and previous year statement of profit and loss and retained earnings as at 1st April, 2017. New and amended standards and interpretations The Company applied for the first time certain amendments to the standards, which are effective for annual periods beginning on or after 1st April, 2018. The nature and the impact of each amendment is described below: (b) (c) Ind AS 20 Accounting for Government Grants and Disclosure In accordance with the amendment in Ind AS 20 “Accounting for Government Grants and Disclosure” the Company has changed its accounting policy of recognizing the grant as a reduction from the carrying amount of the asset instead of recognizing the grant as deferred income. Management believes that this policy results in the financial statements providing reliable and more relevant information about the effects of transaction on the Company’s financial position and performance. The revision in accounting policy has been applied retrospectively and does not have any significant impact on retained earnings as at 1st April, 2017 and profit of the Company. Ind AS 115 Revenue from Contracts with Customers Ind AS 115 supersedes Ind AS 11 Construction Contracts, Ind AS 18 Revenue and related interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. Ind AS 115 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 259 The Tata Power Company Limited Notes to the Financial Statements The Company adopted Ind AS 115 using the full retrospective method of adoption. Ind AS 115 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires relevant disclosures. On adoption of Ind AS 115, amount recoverable from consumers are considered as contract assets accordingly, the Company has classified amount recoverable from consumers from other financial assets to other assets for the previous year ended March 31, 2018. Also, liabilities towards consumers are considered as contract liabilities and accordingly, has been classified from other financial liabilities to other liabilities for the year ended March 31, 2018. 4. Critical accounting estimates and judgements In the application of the Company’s accounting policies, management of the Company is 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 or judgements are: Estimates used for impairment of property, plant and equipment of certain cash generating units (CGU) - Note 5 Estimated fair value of unquoted securities and impairment of investments - Note 8 Estimation of defined benefit obligation - Note 25 and 32 Estimation of current tax and deferred tax expense (including Minimum Alternate Tax credit) - Note 35 Estimates and judgements 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. Judgement to estimate the amount of provision required or to determine required disclosure related to litigation and claims against the Company - Note 38. 5. Property, plant and equipment Accounting Policy Property, plant and equipment is stated at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes purchase price (net of trade discount and rebates) 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 Ind AS 23. Capital work in progress is stated at cost, net of accumulated impairment loss, if any. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred. Depreciation Depreciation commences when an asset is ready for its intended use. Freehold land and assets held for sale are not depreciated. Regulated Assets: Depreciation on Property, plant and equipments 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 regulator. Non-Regulated Assets: Depreciation is recognised on the cost of assets (other than freehold land and properties under construction) less their residual values over their estimated useful lives, using the straight-line method. 260 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements 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. The Company, based on technical assessment made by technical expert and management estimate, depreciates certain items of building, plant and equipments over estimated useful lives which are different from the useful life prescribed in Schedule II to the Companies Act, 2013. The management believes that these estimated useful lives are realistic and reflect fair approximation of the period over which the assets are likely to be used. Estimated useful lives of the Regulated and Non-Regulated assets are as follows: Type of asset Leasehold Lands Hydraulic Works Buildings-Plant Buildings-Others Coal Jetty Railway Sidings, Roads, Crossings, etc. Plant and Equipments (excluding Computers and Data Processing units) Plant and Equipments (Computers and Data Processing units) Transmission Lines, Cable Network, etc. Furniture and Fixtures Office Equipments Motor Cars Motor Lorries, Launches, Barges etc. Helicopters Decapitalisation Useful lives 95 years 35 years 5 to 35 years 25 to 60 years 25 years 25 to 35 years 25 to 35 years 3 years 25 to 35 years 10 to 35 years 5 years 5 years 25 to 35 years 25 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 equipments is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the statement of profit and loss. Impairment Impairment of tangible and intangible assets The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. 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. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a PPA period. To estimate cash flow projections beyond periods covered by the most recent budgets/forecasts, the Company extrapolates cash flow projections in the budget using a steady or declining growth rate for subsequent years, unless an increasing rate can be justified. In any case, this growth rate does not exceed the long-term average growth rate for the market in which the asset is used. Impairment losses of tangible and intangible assets are recognised in the statement of profit and loss. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 261 The Tata Power Company Limited s t n e m e t a t S l a i c n a n i F e h t o t s e t o N l a t o T e r o r c ` s r e t p o c i l e H , s e l c i h e V r o t o M e c ffi O d n a e r u t i n r u F n o i s s i m s n a r T d n a t n a l P y a w l i a R , s d a o R s e g r a B , s e h c n u a L t n e m p u q E i s e r u t x i F e l b a c d n a s e n i l t n e m p u q E i , s g n d i s i k r o w t e n s g n i s s o r c l a o C y t t e J @ s r e h t O t n a l P s k r o W d n a L d n a L - s g n d i l i u B - s g n d i l i u B c i l u a r d y H l d o h e s a e L l d o h e e r F ) . d t n o C ( i t n e m p u q E d n a t n a l P , y t r e p o r P . 5 . 4 9 7 5 7 4 1 , 1 0 7 3 . . 4 1 4 1 5 ) 9 8 7 8 ( . . ) 2 7 8 7 2 ( . 7 4 5 0 9 4 1 , l i l i l i N N N 1 0 7 3 . . 9 3 4 8 8 6 , . 3 0 5 9 5 . ) 6 1 1 7 ( ) 5 7 8 4 ( . . 1 5 9 5 3 7 , 7 4 2 . 8 7 0 3 . l i l i N N 5 2 3 3 . 0 7 0 . 8 6 6 4 . ) 4 9 4 ( . l i N 4 4 2 4 . 8 8 6 . 7 8 6 2 . ) 4 9 3 ( . l i N 1 8 9 2 . 7 3 0 . 0 7 8 2 . ) 7 9 1 ( . ) 1 0 0 ( . 9 0 7 2 . 2 4 1 . 4 0 8 6 . ) 8 9 3 ( . ) 1 0 0 ( . 7 4 5 6 . 5 0 2 . 6 7 2 2 . ) 1 8 1 ( . ) 1 0 0 ( . 9 9 2 2 . 9 5 4 . . 3 2 0 4 ) 8 2 3 ( . ) 1 0 0 ( . 3 5 1 4 . ) 8 2 0 ( . . 2 8 0 0 2 . 4 6 2 6 9 2 , l i N . 8 1 3 6 1 3 , ) 4 2 0 ( . . 4 2 8 2 1 . 0 7 0 7 0 1 , l i N . 0 7 8 9 1 1 , . 2 0 9 3 4 9 , . 9 0 4 4 2 ) 5 7 0 7 ( . ) 2 2 9 2 ( . . 4 1 3 8 5 9 , . 9 8 3 9 3 ) 3 9 7 5 ( . ) 8 6 4 2 ( . . 0 8 5 8 9 4 , . 8 0 7 9 2 5 , 6 6 0 . 8 5 6 4 . ) 3 7 0 ( . l i N 1 5 6 4 . 2 4 1 . 1 7 2 2 . ) 4 6 0 ( . l i N 9 4 3 2 . . 0 1 6 0 1 l i l i l i N N N . 0 1 6 0 1 2 6 5 . 9 3 0 5 . l i l i N N 1 0 6 5 . 4 6 7 . . 0 7 1 3 2 ) 9 3 0 ( . . ) 0 6 1 2 ( . 5 3 7 1 2 2 3 7 9 . 8 4 1 1 . ) 6 3 0 ( . 9 9 5 9 . ) 5 4 2 1 ( . . 4 9 3 8 8 8 8 6 5 . ) 2 6 1 ( . ) 1 1 2 ( . . 9 0 7 3 9 . 5 6 3 2 ) 5 4 1 ( . ) 0 5 1 ( . . 0 1 6 4 2 . 0 8 6 6 2 6 5 1 . ) 8 7 1 ( . . 8 6 6 3 5 l i N . 6 4 6 3 5 7 3 2 1 . ) 1 5 1 ( . . 0 0 3 8 2 l i N . 6 8 3 9 2 . 5 6 5 2 2 l i l i N N l i N . ) 5 6 5 2 2 ( 3 7 7 . 7 3 2 . l i N l i N ) 0 1 0 1 ( . l i N . 0 2 5 4 1 ) 5 4 1 ( . ) 2 1 0 ( . . 3 6 3 4 1 l i l i l i l i l i N N N N N l a t o T e r o r c ` s r e t p o c i l e H , s e l c i h e V r o t o M e c ffi O d n a e r u t i n r u F n o i s s i m s n a r T d n a t n a l P y a w l i a R , s d a o R s e g r a B , s e h c n u a L t n e m p u q E i s e r u t x i F e l b a c d n a s e n i l t n e m p u q E i k r o w t e n , s g n d i s i s g n i s s o r c l a o C y t t e J @ s r e h t O t n a l P s k r o W d n a L d n a L - s g n d i l i u B - s g n d i l i u B c i l u a r d y H l d o h e s a e L l d o h e e r F . 1 1 8 1 6 4 1 , . 1 0 7 3 8 0 3 . . 5 9 1 4 5 . 7 6 7 3 . ) 8 1 0 5 ( . ) 9 6 2 9 3 ( 6 1 2 . . 6 9 1 1 . 0 0 6 2 6 ) 3 0 3 4 ( . . 0 0 0 0 1 ) 0 7 9 8 ( . 9 1 7 1 . . 1 8 9 5 2 6 , l i l i l i l i l i N N N N N l i l i l i l i l i l i N N N N N N 7 6 3 . . 1 1 7 2 . 4 9 7 5 7 4 1 , 1 0 7 3 . . 9 3 4 8 8 6 , 8 7 0 3 . l i N . 9 6 3 2 . 7 7 8 2 ) 3 5 0 ( . ) 5 2 5 ( . l i N . 8 6 6 4 l i N 2 1 3 . 0 9 1 3 . ) 8 9 0 ( . ) 3 0 6 ( . 9 6 0 . . 0 7 8 2 l i N 3 8 3 . 8 7 8 7 . ) 9 9 1 ( . ) 8 2 4 1 ( . 0 7 1 . 4 0 8 6 . 1 4 8 . 3 1 1 . l i N 1 1 9 1 . l i N ) 8 4 0 ( . ) 0 3 1 ( . l i N 7 8 6 2 . 5 7 3 . 1 6 0 . l i N 4 6 2 2 . l i N ) 3 9 0 ( . ) 1 3 3 ( . l i N . 6 7 2 2 6 6 4 . 6 2 1 . l i N . 0 2 3 4 l i N ) 9 8 1 ( . ) 0 0 7 ( . l i N . 3 2 0 4 l i N l i N 4 9 2 . ) 8 5 0 ( . . 7 2 4 7 1 . 1 0 6 8 7 2 , . 4 6 2 6 9 2 , . 8 2 9 4 9 . 8 8 0 2 1 l i l i N N l i l i N N ) 2 5 0 ( . 6 0 1 . . 0 7 0 7 0 1 , . 8 7 0 6 2 . 5 0 7 4 3 9 , l i N 5 2 4 2 . ) 0 3 5 4 ( . . ) 6 7 7 4 1 ( . 2 0 9 3 4 9 , l i l i N N 5 2 0 . 8 4 6 4 . ) 4 6 0 ( . 9 4 0 . 8 5 6 4 . . 8 1 8 1 4 . 7 2 8 4 5 4 , l i N 5 3 7 . ) 0 6 8 3 ( . . 0 0 0 0 1 ) 9 9 4 6 ( . 9 5 5 1 . . 0 8 5 8 9 4 , 2 7 1 . 5 0 0 . 5 0 1 2 . l i l i l i N N N ) 0 2 0 ( . 9 0 0 . 1 7 2 2 . l i l i l i l i l i N N N N N l i l i l i l i l i l i N N N N N N 0 6 5 . 9 7 4 4 . 9 3 0 5 . 0 9 4 . 8 0 3 . ) 0 6 0 ( . ) 6 8 2 ( . 0 5 0 . 1 9 8 7 . 0 3 7 1 . 1 3 0 . 6 1 2 . ) 5 5 0 ( . l i N ) 1 8 0 ( . l i N . 2 3 7 9 . 0 1 6 0 1 . 0 7 1 3 2 l i N 0 0 8 5 . . 6 5 7 7 8 ) 7 0 0 ( . . ) 1 3 8 5 ( 6 7 6 . . 4 9 3 8 8 4 9 6 2 . . 9 7 9 2 2 l i N 5 2 1 . ) 6 0 0 ( . l i N . ) 9 0 2 1 ( 7 2 0 . . 0 1 6 4 2 l i l i l i N N N 1 8 0 . . 3 5 5 3 5 4 3 0 . . 8 6 6 3 5 0 5 2 1 . . 2 3 0 7 2 l i l i l i l i l i N N N N N 8 1 0 . . 0 0 3 8 2 l i l i l i l i l i N N N N N 4 3 5 . 9 3 2 . l i l i l i l i l i l i N N N N N N 3 7 7 . . 5 6 5 2 2 l i N 2 2 7 . . 7 6 5 9 2 ) 3 1 0 ( . . ) 6 5 7 5 1 ( l i N . 0 2 5 4 1 l i l i l i l i l i l i l i l i l i N N N N N N N N N . 0 1 6 0 1 . 8 6 6 2 2 . 5 6 5 2 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 9 5 4 5 7 , . 5 5 3 7 8 7 , 6 7 3 . 3 2 6 . 3 6 2 1 . . 1 8 9 1 0 1 4 . 4 9 5 . . 4 9 3 2 . 1 8 7 2 . 8 4 4 6 9 1 , . 4 9 1 9 8 1 , . 6 0 6 8 2 4 , . 2 2 3 5 4 4 , 2 0 3 2 . 7 8 3 2 . 9 0 0 5 . 1 7 5 5 . . 6 3 1 2 1 . 8 3 4 3 1 . 9 2 0 7 6 . 4 8 7 3 6 . 0 6 2 4 2 . 8 6 3 5 2 l i N . 2 9 7 1 2 . 3 6 3 4 1 . 0 2 5 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 8 1 0 2 , , h c r a M h c r a M t s 1 3 t a s A t s 1 3 t a s A . 5 5 3 7 8 7 , . 0 3 8 5 3 8 , 3 2 6 . 0 9 9 . 8 5 4 . 1 8 9 1 . 4 9 5 . 6 2 9 . 1 8 7 2 . . 8 5 5 3 . 4 9 1 9 8 1 , . 3 7 6 3 8 1 , . 2 2 3 5 4 4 , . 8 7 8 9 7 4 , 7 8 3 2 . 3 4 5 2 . 1 7 5 5 . 1 3 1 6 . . 8 3 4 3 1 . 7 7 7 4 1 . 4 8 7 3 6 . 7 7 7 4 6 . 8 6 3 5 2 . 1 2 5 6 2 . 2 9 7 1 2 . 1 3 0 2 2 . 0 2 5 4 1 . 7 6 5 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 7 1 0 2 , , h c r a M h c r a M t s 1 3 t a s A t s 1 3 t a s A l a n u b i r T w a L y n a p m o C l a n o i t a N e h t h t i w d e l l fi n e e b e v a h s t n e m u c o d y r a s s e c e n e h T l . s i s a b e a s p m u l s a n o ” n r e c n o c g n o g “ a i s a i , s e i r a d i s b u s d e n w o y l l o h w o t y n a p m o c e h t f o s t e s s a y g r e n e n a e l c W M 5 9 9 4 f o r e f s n a r t . r o f t n e m e g n a r r a f o s e m e h c s d e v o r p p a e v a h s r e d o h e r a h s e h T l . 4 . s l a v o r p p a y r o t u t a t s i f o t p e c e r n o d e s i n g o c e r e b d u o w s e m e h c s e h t l f o t c e ff e e h T . r e d r o l a n fi s t i r o f ) T L C N ( ; ) . a 9 1 e t o N r e f e R ( e a s l l r o f d e h s a d e fi i s s a l c , s s e r g o r p n i s i s d e e d f o e l t i t f o n o i t a r t s i g e r h c i h w r o f e s a e l n o n e k a t . , ) e r o r c 5 6 5 2 2 ₹ e u a v s s o r G l . ( e r o r c 5 5 5 1 2 ₹ o t g n i t a g e r g g a d n a l . 9 1 0 2 , h c r a M l t s 1 3 t a s a n o i t u o s e r g n d n e p d n a e t u p s i d n i i s i d e e d e l t i t e h t h c i h w . r o f e r o r c 7 5 7 2 ₹ o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l i ) c ( ) d ( ; s s e r g o r p n i s i s d e e d f o e l t i t f o n o i t a r t s i g e r h c i h w r o f i r a e y s u o v e r p e h t n i d e t i i m L y a b m o r T l i a n m r e T l a c i m e h C f o r e g r e m g n i r u d d e r i u q c a e r o r c 8 8 0 ` o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l . i ) a ( . y a b m o r T t a d e t a c o l ) t n e m g e S r e w o P ( n o i t a t s g n i t a r e n e g 6 t i n U f o t c e p s e r n i e r o r c 0 0 1 ` f o e g r a h c t n e m r i a p m i n a d e d r o c e r d a h y n a p m o c e h t i , r a e y s u o v e r p e h t g n i r u D i . t n e m p u q E d n a t n a P l , y t r e p o r P n o d e t a e r c e g r a h c r o f 3 2 e t o N r e f e R : r o f t p e c x e , y n a p m o C e h t f o e m a n e h t n i l d e h e r a t n e m p u q e d n a t n a p l i , y t r e p o r p n i d e d u l c n i s e i t r e p o r p e b a v o m m l i f o s d e e d e l t i t e h T . 1 . 2 . 3 . s e i t e i c o s g n i s u o h e v i t a r e p o - o c n i i s e r a h s y r a n d r o f o t s o c g n e b * ` e d u l c n i i s g n d i l i u B @ , l . - / 0 0 0 0 5 ` w o e b s e r u g fi s e t o n e D * : s e t o N ; s s e r g o r p n i s i s d e e d f o e l t i t f o n o i t a r t s i g e r h c i h w r o f s r a e y r e i l r a e n i . d e r i u q c a e r o r c 4 5 6 2 ₹ o t g n i t a g e r g g a s e i t r e p o r p e b a v o m m l i ) b ( . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t i d d A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) . a 9 1 e t o N r e f e R ( e a s l l r o f d e h s a d e fi i s s a l c e R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t n e m r i a p m i 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B d n a n o i t a i c e r p e d d e t a l u m u c c A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O g n u n i t n o C - e s n e p x E n o i t a i c e r p e D i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s t e s s a f o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) . a 9 1 e t o N r e f e R ( e a s l l a s o p s i d n o d e t a n m i i l E l r o f d e h s a d e fi i s s a l c e R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B t n u o m a g n i y r r a c t e N 8 1 0 2 , l i r p A t s 1 t a s a e c n a l a B n o i t p i r c s e D t s o C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t i d d A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . y t r e p o r P t n e m t s e v n I m o r f d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . ) . c 9 1 e t o N r e f e R ( s n o i t a r e p O d e u n i t n o c s i D o t d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l e a s l r o f d e h m o r f / ) o t ( d e fi i s s a l c e R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B t n e m r i a p m i d n a n o i t a i c e r p e d d e t a l u m u c c A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O g n u n i t n o C - e s n e p x E n o i t a i c e r p e D i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s n o i t a r e p O d e u n i t n o c s i D - e s n e p x E n o i t a i c e r p e D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . y t r e p o r P t n e m t s e v n I m o r f d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s t e s s a f o l a s o p s i D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ) l w o e b 1 e t o N r e f e R ( t n e m r i a p m I - r a e y e h t r o f e g r a h C . . . . . . . . . . . . . . . . . . . . . . . . . . ) . c 9 1 e t o N r e f e R ( s n o i t a r e p O d e u n i t n o c s i D o t d e r r e f s n a r T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l e a s l r o f d e h s a d e fi i s s a l c e R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 0 2 , h c r a M t s 1 3 t a s a e c n a l a B t n u o m a g n i y r r a c t e N 7 1 0 2 , l i r p A t s 1 t a s a e c n a l a B t s o C n o i t p i r c s e D 262 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements 6. Investment Property Accounting Policy Investment property held to earn rentals or for capital appreciation are stated at cost less subsequent accumulated depreciation and subsequent accumulated impairment loss, if any. Gain or loss on disposal of investment properties is determined as the difference between net disposal proceeds and the carrying amount of the property and is recognised in the statement of profit and loss. Transfer to, or from, investment property is done at the carrying amount of the property. Description Building Given under Operating Lease Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Building Given under Operating Lease 3.08 Nil (3.08) Nil 2.12 0.04 (2.16) Nil Nil 0.96 Cost Balance as at 1st April, 2018 ....................................................................................................... Additions ............................................................................................................................................... Reclassified to Property, Plant and Equipment ....................................................................... Balance as at 31st March, 2019 ................................................................................................. Accumulated amortisation and impairment Balance as at 1st April, 2018 ....................................................................................................... Depreciation expense ....................................................................................................................... Reclassified to Property, Plant and Equipment ....................................................................... Balance as at 31st March, 2019 ................................................................................................. Net carrying amount As at 31st March, 2019 .................................................................................................................. As at 31st March, 2018 .................................................................................................................. Description Cost Balance as at 1st April, 2017 ....................................................................................................... Additions ............................................................................................................................................... Reclassified to Property, Plant and Equipment ....................................................................... Balance as at 31st March, 2018 ................................................................................................. Accumulated amortisation and impairment Balance as at 1st April, 2017 ....................................................................................................... Depreciation expense ....................................................................................................................... Reclassified to Property, Plant and Equipment ....................................................................... Balance as at 31st March, 2018 ................................................................................................. Net carrying amount As at 31st March, 2018 .................................................................................................................. As at 31st March, 2017 .................................................................................................................. Note: Buildings include ` 500/- being cost of ordinary shares in a co-operative society. Information regarding Income and Expenditure of Investment Properties Particulars Rental Income ...................................................................................................................................... Direct Operating Expense arising from Investment Property that generated rental income during the year .................................................................................................................... Direct Operating Expense arising from Investment Property that did not generate rental income during the year ....................................................................................................... Net Income/(Expense) As at 31st March, 2019 ` crore Nil As at 31st March, 2018 ` crore 0.58 Nil Nil Nil (0.07) Nil 0.51 During the previous year, the Company started using the said property for its own business purpose and hence transferred the said Investment Property to Property, Plant and Equipments. Standalone Financials I 263 ` crore Total Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil ` crore Total 3.08 Nil (3.08) Nil 2.12 0.04 (2.16) Nil Nil 0.96 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 7. Intangible Assets Accounting Policy Intangible assets acquired separately Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any. Internally generated Intangibles Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. 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 statement of profit and loss when the asset is derecognised. Useful lives of Intangible Assets Intangible assets with finite lives are amortised over the useful economic life on straight line basis and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life is reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset. Estimated useful lives of the Intangible Assets are as follows: Type of asset Computer Softwares Copyrights, patents, other intellectual property rights, services and operating rights Licences and franchises Description Cost Balance as at 1st April, 2018 ..................................................................................................... Additions ............................................................................................................................................. Disposal................................................................................................................................................ Balance as at 31st March, 2019 ............................................................................................... Accumulated amortisation and impairment Balance as at 1st April, 2018 ..................................................................................................... Amortisation expense - Continued Operations .................................................................... Disposal................................................................................................................................................ Balance as at 31st March, 2019 ............................................................................................... Net carrying amount As at 31st March, 2019 ................................................................................................................ As at 31st March, 2018 ................................................................................................................ Description Cost Balance as at 1st April, 2017 ..................................................................................................... Additions ............................................................................................................................................. Transferred to Discontinued Operations ................................................................................. Disposal................................................................................................................................................ Balance as at 31st March, 2018 ............................................................................................... Accumulated amortisation and impairment Balance as at 1st April, 2017 ..................................................................................................... Amortisation expense - Continued Operations .................................................................... Amortisation expense - Discontinued Operations............................................................... Transferred to Discontinued Operations ................................................................................. Disposal................................................................................................................................................ Balance as at 31st March, 2018 ............................................................................................... Net carrying amount As at 31st March, 2018 ................................................................................................................ As at 31st March, 2017 ................................................................................................................ Notes: # Internally generated Intangible Assets. $ Other than internally generated Intangible Assets. Depreciation/Amortisation - Continuing Operations : Computer Software $ Copyrights, patents, other intellectual property rights, services and operating rights # Licences and franchises $ 205.63 28.34 Nil 233.97 112.50 37.66 Nil 150.16 83.81 93.13 0.53 0.04 Nil 0.57 0.48 0.01 Nil 0.49 0.08 0.05 0.26 Nil Nil 0.26 0.26 Nil Nil 0.26 Nil Nil Computer Software $ Copyrights, patents, other intellectual property rights, services and operating rights # Licences and franchises $ 212.30 18.32 (24.95) (0.04) 205.63 83.46 37.15 3.40 (11.47) (0.04) 112.50 93.13 128.84 104.16 16.45 (120.08) Nil 0.53 43.13 0.02 15.81 (58.48) Nil 0.48 0.05 61.03 0.26 Nil Nil Nil 0.26 0.26 Nil Nil Nil Nil 0.26 Nil Nil Useful lives 5 years 5 years 5 years ` crore Total 206.42 28.38 Nil 234.80 113.24 37.67 Nil 150.91 83.89 93.18 ` crore Total 316.72 34.77 (145.03) (0.04) 206.42 126.85 37.17 19.21 (69.95) (0.04) 113.24 93.18 189.87 Depreciation on Tangible Assets ........................................................................................................................................................................... Add: Depreciation on Investment Property ....................................................................................................................................................... Add: Amortisation on Intangible Assets .............................................................................................................................................................. Total ................................................................................................................................................................................................................................. 264 I Standalone Financials For the year ended 31st March, 2019 ` crore 595.03 Nil 37.67 632.70 For the year ended 31st March, 2018 ` crore 626.00 0.04 37.17 663.21 100th Annual Report 2018-19 8. Non-current Investments Notes to the Financial Statements As at 31st March, 2019 Quantity As at 31st March, 2018 Quantity Face Value (in ` unless stated otherwise) As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 1,10,99,630 1,10,99,630 10 11.07 11.07 I Investments carried at cost less accumulated impairment, if any (A) Investment in Subsidiaries (i) Investment in Equity Shares fully paid-up Quoted NELCO Ltd. .............................................................................................................................. Unquoted Tata Power Trading Co. Ltd. ............................................................................................... Maithon Power Ltd. ............................................................................................................. Coastal Gujarat Power Ltd. (Refer Note 7 below) ...................................................... Bhira Investments Pte. Ltd. (Formerly known as Bhira Investment Ltd) ........... Bhivpuri Investments Ltd. ................................................................................................. Tata Power Green Energy Ltd. .......................................................................................... Khopoli Investments Ltd. ................................................................................................... Trust Energy Resources Pte. Ltd. ..................................................................................... Tata Power Delhi Distribution Ltd. (Refer Note 7 below) ....................................... TP Ajmer Distribution Ltd. ................................................................................................. Tata Power Jamshedpur Distribution Ltd. ................................................................... Industrial Power Utility Ltd. .............................................................................................. Tata Ceramics Ltd. (Refer Note 6 below) ...................................................................... Tata Power Renewable Energy Ltd. (Refer Note 7 below) ...................................... Tata Power Solar Systems Ltd........................................................................................... Tata Power International Pte. Ltd.................................................................................... Af-Taab Investment Co. Ltd. .............................................................................................. 1,60,00,000 111,65,99,120 800,04,20,000 10,00,000 7,46,250 50,000 4,70,07,350 12,91,53,344 28,15,20,000 1,00,00,000 80,50,000 1,10,000 Nil 104,51,07,715 2,29,77,567 6,77,30,650 10,73,000 1,60,00,000 111,65,99,120 608,34,20,000 10,00,000 7,46,250 50,000 4,70,07,350 12,91,53,344 28,15,20,000 10,000 80,50,000 1,10,000 Nil 104,51,07,715 2,29,77,567 6,77,30,650 10,73,000 10 10 10 USD 1 Euro 1 10 USD 1 USD 1 10 10 10 10 2 10 100 USD 1 100 ** Less: Impairment in the value of Investments [Refer Note 8(a) and 8(b)] ........ (ii) Investment in Perpetual Securities Unquoted Tata Power Renewable Energy Ltd. (Refer Note 5 below) ...................................... Coastal Gujarat Power Ltd. (Refer Note 5 below) ...................................................... N.A. N.A. N.A. N.A. 37.09 1,116.83 8,593.25 ** 4.10 4.08 0.02 255.20 607.95 200.93 10.00 8.05** 0.11 Nil * 1,054.03 322.98 577.55** 68.68 12,860.85 4,140.60 8,720.25 3,895.00 6,985.89 10,880.89 19,612.21 (B) (C) Investment in Associates Investment in Equity Shares fully Paid-up Quoted Tata Communications Ltd. ............................................................................................................. Unquoted Yashmun Engineers Ltd................................................................................................................... The Associated Building Co. Ltd. .................................................................................................. Tata Projects Ltd. ................................................................................................................................ Dagachhu Hydro Power Corporation Ltd. ................................................................................ Panatone Finvest Ltd. ....................................................................................................................... Investment in Joint Ventures Investment in Equity Shares fully Paid-up Unquoted Tubed Coal Mines Ltd. ..................................................................................................................... Itezhi Tezhi Power Corporation (Refer Note 7 below) .......................................................... Mandakini Coal Company Ltd. (Refer Note 7 below) ........................................................... Powerlinks Transmission Ltd. (Refer Note 7 below) .............................................................. Industrial Energy Ltd. (Refer Note 7 below) ............................................................................. LTH Milcom Pvt. Ltd. ......................................................................................................................... Dugar Hydro Power Ltd. .................................................................................................................. ** Less: Impairment in the value of Investments .................................................................... Sub-total I (A) + I (B) + I (C) .......................................................................................................... Carried forward……. Nil Nil 10 Nil* 19,200 1,400 Nil 10,74,320 Nil 19,200 1,400 Nil 10,74,320 Nil 100 900 100 Nu 1,000 10 1,01,97,800 Nil 3,93,00,000 23,86,80,000 49,28,40,000 Nil 4,34,25,002 1,01,97,800 4,52,500 3,93,00,000 23,86,80,000 49,28,40,000 Nil 4,32,50,002 10 ZMW 1 10 10 10 10 10 0.01 0.13 Nil * 107.43 Nil * 107.57 10.20** Nil * 39.30** 238.68 492.84 Nil * 43.42** 824.44 67.50 756.94 20,476.72 20,476.72 37.09 1,116.83 6,676.26 ** 4.10 4.08 0.02 255.20 607.95 200.93 0.01 8.05** 0.11 Nil * 1,054.03 322.98 577.55** 68.68 10,933.87 4,140.60 6,793.27 3,895.00 5,476.89 9,371.89 16,176.23 Nil * 0.01 0.13 Nil * 107.43 Nil * 107.57 10.20** 275.74 39.30** 238.68 492.84 Nil * 43.42** 1,100.18 67.50 1,032.68 17,316.48 17,316.48 Standalone Financials I 265 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 8. Non-current Investments (Contd.) Notes to the Financial Statements The Tata Power Company Limited As at 31st March, 2019 Quantity As at 31st March, 2018 Quantity Face Value (in ` unless stated otherwise) As at 31st March, 2019 ` crore 20,476.72 As at 31st March, 2018 ` crore 17,316.48 Brought forward……. Investments designated at Fair Value through Other Comprehensive Income (Refer Note 8) Investment in Equity Shares fully Paid-up Quoted Voltas Ltd. ......................................................................................................................................................... Tata Consultancy Services Ltd. .................................................................................................................. Tata Teleservices (Maharashtra) Ltd. ....................................................................................................... 2,33,420 766 Nil 2,33,420 383 Nil Unquoted Tata Services Ltd. ............................................................................................................................................ Tata Industries Ltd.# ....................................................................................................................................... Tata Sons Pvt. Ltd. # ........................................................................................................................................ Haldia Petrochemicals Ltd. .......................................................................................................................... Tata International Ltd.# ................................................................................................................................. Tata Teleservices Ltd. (Refer Note 34 a. below) .................................................................................... 1,112 58,28,126 6,673 2,24,99,999 3,500 Nil 1,112 58,28,126 6,673 2,24,99,999 3,500 Nil II III 1 1 10 1,000 100 1,000 10 1,000 10 14.63 0.15 Nil * 14.78 Nil 102.69 241.95 56.48 3.75 Nil * 404.87 419.65 14.50 0.11 Nil * 14.61 Nil 102.69 241.95 56.48 3.75 Nil * 404.87 419.48 Investments carried at Amortised Cost Investment in Subsidiaries (A) (i) Investment in Preference Shares fully Paid-up Unquoted Tata Power Delhi Distribution Ltd. (Refer Note 7 below) ....................................... Tata Ceramics Ltd. (Refer Note 6 below) ...................................................................... (B) Statutory Investments (i) (ii) Contingencies Reserve Fund Investments Government Securities (Unquoted) fully Paid-up .................................................... Deferred Taxation Liability Fund Investments Government Securities (Unquoted) fully Paid-up .................................................... Sub-total III B (i+ii) .......................................................................................................................... Total .................................................................................................................................................................... Nil Nil 2,55,00,000 Nil 100 100 Nil Nil * Nil 255.00 Nil * 255.00 136.65 111.74 237.75 374.40 21,270.77 279.75 391.49 18,382.45 Notes: * ** # 1. 2. 3. 4. 5. 6. Refer as Asset Held For Sale (Refer Note 19 a.). Impairment in value of Investments. The cost of these 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. Aggregate Market Value of Quoted Investments Aggregate Carrying Value of Quoted Investments Aggregate Carrying Value of Unquoted Investments (Net) Aggregate amount of impairment in value of Investments The Company has invested in unsecured subordinated perpetual securities issued by Tata Power Renewable Energy Ltd. and Coastal Gujarat Power Ltd., 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. 316.07 25.85 21,244.92 4,208.10 185.92 25.68 18,356.77 4,208.10 The Company, along with its subsidiary, has 30.68% shareholding in Tata Ceramics Ltd. (TCL). Further, TCL has issued Redeemable Cumulative Convertible Preference Shares which have been fully subscribed by the Company and its 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%. As the Company has sufficient dominant voting interest to direct TCL’s relevant activities, investment in the said Company has been considered as investment in subsidiary. 266 I Standalone Financials 100th Annual Report 2018-19 8. Non-current Investments (Contd.) 7. Shares pledged : Notes to the Financial Statements The Company has pledged shares of subsidiaries and joint ventures with the lenders for borrowings availed by the respective subsidiaries and joint ventures. Details Coastal Gujarat Power Ltd. .................................................................................................................................................. Tata Power Renewable Energy Ltd. .................................................................................................................................. Itezhi Tezhi Power Corporation * ....................................................................................................................................... Mandakini Coal Company Ltd. .......................................................................................................................................... Powerlinks Transmission Ltd. ............................................................................................................................................. Industrial Energy Ltd. ............................................................................................................................................................ * Re-classified as Asset Held For Sale (Refer Note 19 a.) Category Subsidiary Subsidiary Joint Venture Joint Venture Joint Venture Joint Venture 31st March, 2019 Nos. 3,102,544,200 258,114,935 452,500 20,043,000 238,680,000 251,348,400 31st March, 2018 Nos. 3,102,544,200 258,114,935 4,52,500 20,043,000 238,680,000 251,348,400 Further, in respect of outstanding borrowings of Tata Power Delhi Distribution Limited (TPDDL), the Company has given an undertaking for non-disposal of equity shares in TPDDL to its lenders. 8. Investments at Fair Value Through Other Comprehensive Income (FVTOCI) reflect investment in quoted and unquoted equity securities. These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in similar line of business as the Company, thus disclosing their fair value change in profit and loss will not reflect the purpose of holding. (a) The Company holds investments in Coastal Gujarat Power Ltd. (CGPL) (a wholly owned subsidiary of the Company operating 4,000 MW Mundra power plant), Indonesian mining companies PT Kaltim Prima Coal (KPC) and PT Baramulti Suksessarana TBK (BSSR) through intermediate holding companies (associates operating coal mines in Indonesia and supplying coal to CGPL) and Trust Energy Resources Pte. Ltd. (TERPL) and Eastern Energy Pte. Ltd. (EEPL) (shipping companies in Singapore providing freight services for coal shipment to CGPL). All these companies constitute a single cash generating unit (CGU) and form part of same segment due to interdependency of cash flows. CGPL is incurring significant losses on account of significant increase in coal prices due to change in Indonesian laws which is offset by the profits earned by the mining companies. The Company has performed the impairment assessment and determined the value in use based on estimated cash flow projections over the life of the assets included in CGU. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. For Mundra power plant, future cash flows is estimated based on remaining period of long term power purchase agreement (PPA) and thereafter based on management’s estimate on tariff and other assumptions. Cash flow projection of Mines is derived based on estimated coal production considering the renewal of license for operating the Mines. During the previous year, the Company had recognised an impairment provision of ` 3,555 crore in CGU. A reassessment of the assumptions used in estimating the impact of impairment of the cash generating unit (CGU) comprising of Coastal Gujarat Power Ltd. and the Indonesian coal mines, combined with the significant impact of unwinding of a year’s discount on the cash flows, would have resulted in a reversal of ₹ 2,100 crore of provision for impairment. Considering the significant uncertainties arising from ongoing renegotiation of the Mundra Power Purchase Agreement, as recommended by the High Powered Committee, and the pending renewal of the mining license at the Indonesian coal mines, the Company has not effected such a reversal. The reversal of impairment has not resulted from any significant improvement in the estimated service potential of the concerned CGU. Key assumptions used for value in use calculation include coal prices, energy prices post the PPA period, discount rates and exchange rates. Short term coal prices and energy prices used in three to five years projections are based on market survey and expert analysis report. Afterwards increase in cost of coal and exchange rates are considered based on long term historical trend. Further, the Management strongly believes that mine licenses will be renewed post expiry. Discount rate represents the current market assessment of the risk specific to CGU taking into consideration the time value of money. Pre tax discount rate used in the calculation of value in use of investment in power plant is 10.61% p.a. (31st March 2018: 11.15% p.a.) and investment in coal mines and related infrastructure companies is 16.31% p.a. (31st March 2018: 21.95% p.a.). (b) The Company holds investments in Adjaristsqali Netherlands B.V. (ABV) (a joint venture of the Company operating 187 MW hydro power plant in Georgia) through intermediate holding company Tata Power International Pte. Ltd. (TPIPL). During the previous year, the Company performed the impairment assessment and recognised an impairment charge of ` 577.55 crore against the carrying value of equity investments in TPIPL. The financial guarantee obligation of ` 103.74 crore (31st March, 2018 - ` 97.77 crore) is undertaken on behalf of TPIPL towards the lenders of the said project. The impairment charge and financial guarantee obligation amounting to ` 675.32 crore is recorded in the statement of profit and loss and disclosed as an exceptional item in the previous year. Further during the year, Management has re-assessed the impairment and continue to believe that the impairment loss recognised need not be reversed. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 267 The Tata Power Company Limited 9. Trade Receivables (Unsecured unless otherwise stated) Notes to the Financial Statements Non-current Trade Receivables Considered Good .................................................................................................................. Total ...................................................................................................................................................... Current Trade Receivables Considered Good - Secured (Refer Note below) ......................................................... Considered Good .................................................................................................................. Credit Impaired ....................................................................................................................... Less: Allowance for Doubtful Trade Receivables ......................................................... Total ...................................................................................................................................................... Note: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 185.76 185.76 216.72 1,039.72 46.75 1,303.19 46.75 1,256.44 185.76 185.76 190.52 781.53 36.66 1,008.71 36.66 972.05 The Company holds security deposits of ` 216.72 crore (31st March, 2018 - ` 190.52 crore) in respect of electricity receivables. 9.1 Trade Receivables As at 31st March, 2019 - ` 900.14 crore (31st March, 2018 - ` 694.48 crore) is due from Brihanmumbai Electric Supply & Transport Undertaking, Reliance Infrastructure Ltd., Maharashtra State Electricity Transmission Company Ltd. and Tata Steel Ltd. which represents Company’s large customers who owe 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 expected credit loss allowance is not calculated on non current trade receivable on account of dispute. 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 of Receivables Within the credit period ................................................................................................................... 1-90 days past due ............................................................................................................................. 91-182 days past due ........................................................................................................................ More than 182 days past due ......................................................................................................... Age of receivables 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.................................................................................... Less: Transferred to Assets Classified as Held For Sale (Refer Note 19 a.) ...................... Balance at the end of the year .................................................................................................. Expected Credit loss (%) As at 31st March, 2019 0.10% 0.11% 0.99% 9.30% As at 31st March, 2018 0.05% 0.34% 1.34% 7.80% As at 31st March, 2019 ` crore 734.72 343.87 30.61 379.75 As at 31st March, 2018 ` crore 740.98 80.81 31.92 340.76 As at 31st March, 2019 ` crore 36.66 As at 31st March, 2018 ` crore 43.70 21.63 (11.54) 46.75 2.62 (9.66) 36.66 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 security deposit. 268 I Standalone Financials 100th Annual Report 2018-19 10. Loans (Unsecured unless otherwise stated) Notes to the Financial Statements Non-current - At Amortised Cost Security Deposits Considered Good ......................................................................................................................................... Credit Impaired ............................................................................................................................................. Less: Allowance for Doubtful Deposits ................................................................................................. Loans to Related Parties (Refer Note 41) Considered Good * ...................................................................................................................................... Credit Impaired ............................................................................................................................................. Less: Allowance for Bad and Doubtful Loans ...................................................................................... Other Loans Loans to Employees ..................................................................................................................................... Considered Good ................................................................................................................................ Total ........................................................................................................................................................................................ Current- At Amortised Cost Security Deposits Considered Good ......................................................................................................................................... Loans and Advances to Related Parties (Refer Note 41) Considered Good ......................................................................................................................................... Credit Impaired ............................................................................................................................................. Less: Allowances for Doubtful Advances .............................................................................................. Total ........................................................................................................................................................................................ As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 45.42 27.44 72.86 27.44 45.42 Nil 55.52 55.52 55.52 Nil 5.93 51.35 1.08 1.08 118.12 10.84 128.96 10.84 118.12 119.20 46.81 29.54 76.35 29.54 46.81 15.56 55.52 71.08 55.52 15.56 6.53 68.90 0.67 0.67 402.25 Nil 402.25 Nil 402.25 402.92 * Reclassified as Held for Sale. (Refer Note 19 a.) Disclosure under Regulation 53(f) and 34(3) read together with Para A Schedule V of Securities and Exchange Board of India (SEBI) (Listing obligations and disclosure requirements) Regulations, 2015. Loans and advances 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 Maithon Power Ltd. ................................................... Subsidiary Tata Power Jamshedpur Distribution Ltd. $ ...... Subsidiary Tata Ceramics Ltd. $ ................................................... Subsidiary TP Ajmer Distribution Ltd. ....................................... Subsidiary Mandakini Coal Company Ltd. $ ........................... Joint Venture Nelito Systems Ltd. $ ................................................. Associate Indo Rama Renewables Jath Ltd. .......................... Subsidiary Industrial Power Utility Ltd. .................................... Subsidiary Walwhan Solar MP Ltd. ............................................ Subsidiary Welspun Renewable Energy Pvt Ltd. .................. Subsidiary Tata Power Green Energy Ltd. ............................... Subsidiary Tata Power Trading Company Ltd. ....................... Subsidiary Powerlinks Transmission Ltd. ................................ Joint Venture Walwhan Solar TN Ltd. ............................................. Subsidiary Yashmun Engineers Ltd............................................ Subsidiary Itezhi Tezhi Power Corporation # .......................... Joint Venture Total ................................................................................ Notes: ** Including interest accrued. $ Provided for. # Reclassified as held for sale. Previous year’s figures are in italics. Amount Outstanding as at the year end 31st March, 2019 31st March, 2018** Nil 339.15 Nil 1.24 1.00 31.06 54.25 1.27 36.61 Nil Nil Nil Nil Nil Nil Nil Nil 464.58 17.39 481.97 Nil 53.00 Nil Nil 10.84 25.00 54.25 1.27 Nil 0.05 10.00 30.00 0.07 Nil Nil Nil Nil 184.48 16.51 200.99 ` crore Maximum Principal Amount Outstanding during the year (excluding interest accrued) 31st March, 2019 245.00 419.49 47.04 1.24 9.84 25.00 54.25 1.27 35.00 0.05 10.00 30.00 0.07 100.00 0.10 165.00 1.00 31st March, 2018 Nil 556.50 Nil 1.24 1.00 39.28 54.25 1.27 35.00 Nil Nil Nil Nil Nil Nil Nil Nil 16.51 15.56 Standalone Financials I 269 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 11. Finance Lease Receivable - At Amortised Cost (Unsecured unless otherwise stated) Accounting Policy Leasing arrangement The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. The Company as lessor Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned. Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amount due from lessees under finance leases are recorded as receivables at 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 net investment outstanding in respect of the lease. Finance Lease Receivable - Non-current .................................................................................. Finance Lease Receivable - Current ........................................................................................... Total ...................................................................................................................................................... 11.1 Leasing Arrangements As at 31st March, 2019 ` crore 554.27 37.58 591.85 As at 31st March, 2018 ` crore 574.76 34.27 609.03 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 the same on the basis of the valuation to be determined as per the PPAs. This arrangement is an embedded finance lease. 11.2 Amount receivable under Finance Lease Not later than one year ................................. Later than one year and not later than five years ............................................................. Later than five years ....................................... Unearned finance income ............................ lease Present value of minimum payments receivable ...................................... Allowance lease payments ............................................................ for uncollectible Unguaranteed residual life .......................... Total ..................................................................... Minimum Lease Payments As at 31st March, 2019 ` crore 108.64 As at 31st March, 2018 ` crore 107.94 Present Value of Minimum Lease Payments As at 31st March, 2019 ` crore 37.58 As at 31st March, 2018 ` crore 34.27 521.73 613.63 1,244.00 652.15 591.85 Nil 591.85 Nil 591.85 520.65 713.51 1,342.10 733.07 609.03 Nil 609.03 Nil 609.03 170.80 383.47 591.85 Nil 591.85 Nil 591.85 Nil 591.85 147.90 426.86 609.03 Nil 609.03 Nil 609.03 Nil 609.03 The implicit interest rate inherent in the leases is fixed at the contract for the entire lease term. The average implicit interest rate contracted is approximately in the range of 12.62% - 16.34% per annum (31st March, 2018: 12.62% - 16.34% per annum). 270 I Standalone Financials 100th Annual Report 2018-19 12. Other Financial Assets Notes to the Financial Statements Non-current - At Amortised Cost (i) Accruals Doubtful Interest Accrued on Loans to Related Parties ..................................... Less: Allowance for Doubtful Interest ..................................................... (ii) Others Unsecured, considered good Balances with Banks: In Deposit Accounts (with remaining maturity of more than twelve months) (Refer Note below) ........................................................ Total ..................................................................................................................................................... Note: Balances with banks held as margin money deposits against guarantees. Current - At Amortised Cost (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 Loans to Related Parties ..................................... Interest Accrued on Inter-corporate Deposits .................................... Less: Allowance for Doubtful Interest ..................................................... (ii) Others Unsecured, considered good Dividend Receivable..................................................................................... Other Receivables ......................................................................................... Total ..................................................................................................................................................... 13. Non-current Tax Assets Non-current Tax Assets Advance Income-tax (Net) .......................................................................................................... Total .................................................................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 1.24 1.24 1.24 Nil 2.89 2.89 2.89 0.39 6.69 6.96 Nil 0.19 0.32 1.40 15.95 1.72 14.23 81.16 0.67 81.83 96.06 1.24 1.24 1.24 Nil Nil Nil Nil 0.24 6.51 7.15 30.60 7.40 Nil 1.40 53.30 1.40 51.90 245.87 0.01 245.88 297.78 As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 68.65 68.65 Nil Nil Standalone Financials I 271 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 14. Other Assets Non-current (i) Capital Advances Unsecured, considered good ............................................................................ Doubtful ................................................................................................................... Less: Allowance for Doubtful Advances ......................................................... 17.56 0.12 17.68 0.12 17.56 3.19 0.12 3.31 0.12 3.19 (ii) Security Deposits Unsecured, considered good ............................................................................ 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 ...................................................................................... Recoverable from Consumers [Refer Note 3.13 (c)] ..................... Doubtful ................................................................................................................... Less: Allowance for Doubtful Advances ......................................................... Total .................................................................................................................................................... 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 ...................................................................................... Recoverable from Consumers [Refer Note 3.13 (c)] ..................... Advances to Vendors ............................................................................... Other Advances......................................................................................... Doubtful ................................................................................................................... Less: Allowance for Doubtful Advances ......................................................... Total .................................................................................................................................................... 50.10 16.22 58.05 124.37 202.39 0.99 404.79 0.93 406.71 0.93 405.78 977.10 12.36 3.69 16.05 3.24 22.67 787.00 122.53 0.62 0.13 932.95 0.13 932.82 952.11 48.86 16.22 58.04 123.12 204.84 1.57 675.98 0.96 678.51 0.96 677.55 1,235.70 6.53 Nil 6.53 3.24 34.38 136.38 125.95 2.77 0.13 299.61 0.13 299.48 309.25 272 I Standalone Financials 100th Annual Report 2018-19 15. Inventories Accounting Policy 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. Cost of inventory includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Unserviceable/damaged stores and spares are identified and written down based on technical evaluation. Inventories (lower of cost and net realisable value) (a) Fuel .......................................................................................................................................... Fuel-in-Transit ...................................................................................................................... Stores and Spares Stores and Spare Parts ...................................................................................................... Loose Tools .......................................................................................................................... (b) (c) (d) Others Property under Development ....................................................................................... Total ..................................................................................................................................................... Notes: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 253.44 56.97 149.19 0.35 119.56 579.51 184.74 39.65 149.09 0.24 100.50 474.22 1. During the year ended 31st March, 2019, the Company has recognised ` Nil (31st March, 2018 - ` 46.91 crore) as an expense as net realisable value adjustment due to non operation of Unit 6 in Trombay Generating Station. 2. Refer Note 23 for Inventories pledged as security for liabilities. 16. Current Investments Investment carried at Amortised Cost Statutory Investments Contingency Reserve Fund Investments Government Securities (Unquoted) ....................................................................... Deferred Taxation Liability Fund Investments Government Securities (Unquoted) ....................................................................... Total ....................................................................................................................................................... Note: Aggregate Market Value of Quoted Investments ........................................................ Aggregate Carrying Value of Quoted Investments ..................................................... Aggregate Carrying Value of Unquoted Investments ................................................ As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Nil 42.00 42.00 Nil Nil 42.00 10.00 Nil 10.00 Nil Nil 10.00 Standalone Financials I 273 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 17. Cash and Cash Equivalents - At Amortised Cost Accounting Policy Notes to the Financial Statements Cash and cash equivalents in the balance sheet comprise cash at banks and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. Cash and cash equivalents include balances with banks which are unrestricted for withdrawal and usage. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash at banks and short-term deposits, as defined above, net of outstanding bank overdraft as they are considered an integral part of the Company’s cash management. (i) Balances with Banks: (i) In Current Accounts...................................................................................................... Cash and Cash Equivalents as per Balance Sheet.................................................. Bank Overdraft attributable to Continuing Operations (Refer Note 28) ............. Cash and Cash Equivalents as per Statement of Cash Flows - Continuing Operations.................................................................................................................................. Balances with Banks: In Current Accounts...................................................................................................... Book Overdraft ......................................................................................................................... Cash and Cash Equivalents as per Statement of Cash Flows - Discontinued Operations................................................................................................................................ Cash and Cash Equivalents as per Statement of Cash Flows ........................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 75.94 75.94 (2.19) 73.75 6.13 (0.02) 6.11 79.86 42.94 42.94 (95.44) (52.50) 1.88 (0.04) 1.84 (50.66) Reconciliation of liabilities from Financing Activities Particulars As at 1st April, 2018 Cash flows Proceeds Repayment Non-cash Transactions Reclassified as part of Discontinued Operations ` crore As at 31st March, 2019 (including Non-current Borrowings Current Maturities of Non-current Borrowings) ..................................................... Current Borrowings (excluding Bank Overdraft) ......................................................... Total ................................................................... Particulars Non-current Borrowings (including Current Maturities of Non-current Borrowings) ..................................................... Current Borrowings (excluding Bank Overdraft) ......................................................... Total ................................................................... 12,244.97 3,337.09 (4,729.41) (135.48) 3.55 10,720.72 4,231.02 22,729.91 (20,231.28) 16,475.99 26,067.00 (24,960.69) Nil (135.48) (0.04) 3.51 6,729.61 17,450.33 As at 1st April, 2017 Cash flows Proceeds Repayment Non-cash Transactions Reclassified as part of Discontinued Operations ` crore As at 31st March, 2018 14,111.67 2,408.96 (3,697.23) (578.43) Nil 12,244.97 2,391.66 11,274.46 16,503.33 13,683.42 (9,468.45) (13,165.68) Nil (578.43) 33.35 33.35 4,231.02 16,475.99 274 I Standalone Financials 100th Annual Report 2018-19 18. Other Balances with Banks - At Amortised Cost Notes to the Financial Statements (a) (b) In Deposit Accounts (Refer Note below) ............................................................. In Earmarked Accounts- Unpaid Dividend Account ........................................................................... Total ................................................................................................................................................ Note: Balances with banks held as margin money deposits against guarantees. 19a. Assets Classified as Held For Sale As at 31st March, 2019 ` crore 2.00 As at 31st March, 2018 ` crore 1.94 17.85 19.85 13.54 15.48 Accounting Policy Non-current assets or disposal group 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 or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset or disposal group 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. As at each balance sheet date, the management reviews the appropriateness of such classification. Non-current assets or disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. The Company treats sale/distribution of the asset or disposal group to be highly probable when: - - - the appropriate level of management is committed to a plan to sell the asset (or disposal group), an active programme to locate a buyer and complete the plan has been initiated (if applicable), the asset (or disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value, the sale is expected to qualify for recognition as a completed sale within one year from the date of classification, and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. - - Property, plant and equipment and intangible assets once classified as held for sale/distribution to owners are not depreciated or amortised. A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and: - - Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss after tax from discontinued operations in the statement of profit and loss. Additional disclosures are provided hereunder. All other notes to the financial statements mainly include amounts for continuing operations, unless otherwise mentioned. represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations. Land [Refer Note (i)] ........................................................................................................................ Building [Refer Note (ii)] ............................................................................................................... Plant and Equipment [Refer Note (iii)] .................................................................................... Investments carried at Fair Value through Other Comprehensive Income [Refer Note (iv)] ................................................................................................................................ in Associates and Joint Ventures Other [Refer Note (v) & (vi)] ....................................................................................................................... Investments in Subsidiaries [Refer Note (vii)] ....................................................................... Loan (including interest accrued) to Joint Venture [Refer Note (v)] .............................. Assets of Discontinued Operations [Refer Note 19 c.] ....................................................... Total ...................................................................................................................................................... Investments carried at Cost As at 31st March, 2019 ` crore 309.99 9.75 4.55 As at 31st March, 2018 ` crore 97.21 Nil 0.22 38.65 69.70 360.76 Nil 18.59 2,064.30 2,806.59 1,028.82 Nil Nil 2,065.19 3,261.14 Standalone Financials I 275 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 19a. Assets Classified as Held For Sale (Contd.) Notes to the Financial Statements The Tata Power Company Limited (i) (ii) (iii) Land at Belgaum ` Nil (31st March, 2018 - ` 2.90 crore) has been disposed off in the current year; Land at Tiruldih ` 9.72 crore (net of impairment loss of ` 34 crore) (31st March, 2018 - ` 9.72 crore); Land at Vadaval ` 3.21 crore (31st March, 2018 - ` 3.21 crore); Land at Naraj Marthapur ` 81.38 crore (net of impairment loss of ` 37 crore) (31st March, 2018 - ` 81.38 crore); Land at Hadapsar ` 0.08 crore (31st March, 2018 - ` Nil); Land at Dehrand ` 215.56 crore (31st March, 2018 - ` Nil); Land at Oil Tankage Unit, Trombay (CTTL) ` 0.04 crore (31st March, 2018 - ` Nil). The Company had decided to sell/transfer following land and consequently classified as assets held for sale at lower of carrying amount and fair value less cost to sell: (a) (b) (c) (d) (e) (f ) (g) The Company had decided to sell/transfer following buildings and consequently classified as assets held for sale at lower of carrying amount and fair value less cost to sell: (a) (b) (c) (d) (e) The Company has a Oil Tankage unit at Trombay. During the year, the Company has reclassified the said assets as 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 ` 4.55 crore as at 31st March, 2019. Building at Erangal ` 0.23 crore (31st March, 2018 - ` Nil); Building at Panvel ` 0.48 crore (31st March, 2018 - ` Nil); Building at Peninsula ` 8.02 crore (31st March, 2018 - ` Nil); Building at Metropolitan ` 0.89 crore (31st March, 2018 - ` Nil); Building at Oil Tankage Unit, Trombay (CTTL), ` 0.13 crore (31st March, 2018 - ` Nil). (v) (iv) During the year ended 31st March, 2017, the Company had decided to divest its investment in shares carried at fair value through other comprehensive income in Tata Teleservices (Maharashtra) Ltd. and Tata Teleservices Ltd. Part of the said investments has been disposed off in the current year. Balance investments have been classified as held for sale at fair value of ` 38.65 crore as at 31st March, 2019 (31st March, 2018 - ` 69.70 crore). During the year, the Company decided to divest its investments in and loans given to its Joint Venture Company, Itezhi Tezhi Power Corporation ` 275.75 crore and ` 18.59 crore respectively. Accordingly, the said investments and loans have been classified as held for sale. No impairment loss has been recognised on reclassification as the Company expects that the fair value less costs to sell is higher than the carrying amount of ` 275.75 crore and ` 18.59 crore as at 31st March, 2019. During the previous year, the Company decided to divest its investments in its Associate Company, Tata Projects Ltd. (` 85.01 crore). Accordingly, the said investments have been classified as held for sale. No impairment loss has been recognised on reclassification as the Company expects that the fair value less costs to sell is higher than the carrying amount of ` 85.01 crore as at 31st March, 2019. (vi) During the year, the Company sold investments in Panatone Finvest Ltd. (` 600.00 crore) and Tata Communications Ltd. (` 343.81 crore) (Associate Companies) at the sale value of ` 1,542.62 crore and ` 614.18 crore respectively, which were classified as Assets Held for Sale in the previous year. The resultant gain on sale of investments of ` 942.62 crore and ` 270.37 crore respectively, has been disclosed as an exceptional items in the Statement of Profit and Loss. (vii) During the previous year, the Company decided to divest its investments in equity and preference shares of its subsidiary, Tata Ceramics Ltd. Accordingly, the said investments have been classified as held for sale at ` Nil (net of impairment ` 14.21 crore). 19b. Liabilities directly associated with Assets Classified as Held For Sale Liabilities of Discontinued Operations (Refer Note 19 c.) .................................................. Total ...................................................................................................................................................... 19c. Assets Classified as Held For Sale - Discontinued Operations As at 31st March, 2019 ` crore 966.27 966.27 As at 31st March, 2018 ` crore 877.56 877.56 During the previous year, the Company approved sale of its Strategic Engineering Division (SED) to Tata Advanced Systems Ltd. (TASL) [a wholly owned subsidiary of Tata Sons Pvt. Ltd.] as a going concern on slump sale basis, subject to regulatory approvals at an enterprise value of ` 2,230 crore (out of which ` 1,040 crore payable at the time of closing and ` 1,190 crore payable on achieving certain milestones). Accordingly, defence business segment is presented as discontinued operations in the segment note. The date of completion of the transaction is subject to approval by National Company Law Tribunal (NCLT) and such other requisite approvals. 276 I Standalone Financials 100th Annual Report 2018-19 19c. Assets Classified as Held For Sale - Discontinued Operations (Contd.) Notes to the Financial Statements Results of Strategic Engineering Division for the year are presented below Particulars Income Revenue from Operations .................................................................................................................................. Expenditure Cost of Components Consumed ..................................................................................................................... Employee Benefits Expense.............................................................................................................................. Finance Costs ......................................................................................................................................................... Depreciation & Amortisation ........................................................................................................................... Other Expenses ..................................................................................................................................................... Total Expenses ..................................................................................................................................................... Profit/(Loss) before tax from Discontinued Operations.................................................................. Tax Current Tax/(Credit) ............................................................................................................................................. Deferred Tax ........................................................................................................................................................... Total Tax .................................................................................................................................................................. Profit/(Loss) for the year from Discontinued Operations ............................................................... Other Comprehensive Income/(Expense) ................................................................................................... Tax on Other Comprehensive Income .......................................................................................................... Total Comprehensive Income/(Expense) ................................................................................................ For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore 143.59 138.10 110.85 36.33 Nil 50.13 335.41 (191.82) (71.92) 5.94 (65.98) (125.84) (1.14) 0.40 (126.58) 286.74 213.37 49.40 8.85 31.17 69.82 372.61 (85.87) (17.36) 3.23 (14.13) (71.74) 0.85 Nil (70.89) Major classes of Assets and Liabilities of Strategic Engineering Division classified as held for sale as at 31st March, 2019 are as follows: Assets Property, Plant and Equipment ....................................................................................................................... Capital Work-in-Progress ................................................................................................................................... Other Intangible Assets...................................................................................................................................... Intangible Assets Under Development ........................................................................................................ Non-current Financial Assets ........................................................................................................................... Other Non-current Assets ................................................................................................................................. Current Assets Inventories .............................................................................................................................................................. Current Financial Assets ..................................................................................................................................... Other Current Assets ........................................................................................................................................... Assets Classified as Held For Sale............................................................................................................... Liabilities Non-current Liabilities Financial Liabilities ............................................................................................................................................... Provisions ................................................................................................................................................................ Current Liabilities Financial Liabilities ............................................................................................................................................... Provisions ................................................................................................................................................................ Other Current Liabilities ..................................................................................................................................... Liabilities directly associated with Assets Classified as Held For Sale ..................................... Net Assets directly associated with Discontinued Operations .................................................... Net cash flows attributable to Strategic Engineering Division are as follows: Net Cash Flow from/(used) in Operating Activities.................................................................................. Net Cash Flow from/(used) in Investing Activities ................................................................................... 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) .................................................. As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 302.06 418.75 123.42 347.10 3.66 74.66 104.15 261.96 428.54 2,064.30 679.31 30.22 190.00 17.91 48.83 966.27 1,098.03 302.99 361.42 75.08 351.84 4.75 78.04 102.30 309.75 479.02 2,065.19 547.38 19.05 202.51 37.93 70.69 877.56 1,187.63 For the year ended 31st March, 2019 ` crore 18.67 (87.35) 72.95 4.27 1.84 6.11 For the year ended 31st March, 2018 ` crore (16.31) (233.13) 237.27 (12.17) 14.01 1.84 During the year, the Company has incurred Research and Development expenditure including capital expenditure amounting to ` 43.62 crore (31st March, 2018 - ` 118.75 crore). Estimated amount of Contract remaining to be executed on capital account and not provided for is ` 55.57 crore (31st March, 2018 - ` 103.93 crore). Contingent Liability of excise duty amounts to ` 14.28 crore (31st March, 2018 - ` 14.28 crore). Standalone Financials I 277 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 20. Regulatory Deferral Account Accounting Policy Notes to the Financial Statements The Company determines revenue gaps (i.e. surplus/shortfall in actual returns over returns entitled) in respect of its regulated operations in accordance with the provisions of Ind AS 114 “Regulatory Deferral Accounts” read with the Guidance Note on Rate Regulated Activities issued by ICAI and based on the principles laid down under the relevant Tariff Regulations/Tariff Orders notified by the Electricity Regulator and the actual or expected actions of the regulator under the applicable regulatory framework. Appropriate adjustments in respect of such revenue gaps are made in the regulatory deferral account of the respective year for the amounts which are reasonably determinable and no significant uncertainty exists in such determination. These adjustments/accruals representing revenue gaps are carried forward as Regulatory deferral accounts debit/credit balances (Regulatory Assets/Regulatory Liabilities) as the case may be in the financial statements, which would be recovered/refunded through future billing based on future tariff determination by the regulator in accordance with the electricity regulations. The Company presents separate line items in the balance sheet for: i. ii. the total of all regulatory deferral account debit balances and related deferred tax balances; and the total of all regulatory deferral account credit balances and related deferred tax balances. A separate line item is presented in the Statement of Profit and Loss for the net movement in regulatory deferral account. Regulatory assets/ liabilities on deferred tax expense/income is presented separately in the tax expense line item. Regulatory Deferral Account - Liability - Current Regulatory Liabilities.................................................................................................................................................... Regulatory Deferral Account - Assets - Non-current Regulatory Assets .......................................................................................................................................................... Net Regulatory Assets/(Liabilities) ..................................................................................................................... Rate Regulated Activities As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Nil 485.00 999.00 999.00 1,795.19 1,310.19 (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 is as follows: Opening Regulatory Assets (Net) ........................................................... Regulatory Income/(Expenses) during the year (i) (ii) Power Purchase Cost .................................................................... Other expenses as per the terms of Tariff Regulations including Return On Equity ........................................................ Collected during the year as per approved Tariff ............... (iii) (iv) Amount Collected in respect of earlier year (Net) ............. Net movement in Regulatory Deferral Balances (i + ii + iii + iv) .. Regulatory Assets/(Liabilities) on carrying cost recognised as revenue ............................................................................................................ Recovery from Company’s Generation Business .............................. Net Movement in Regulatory Deferral Balances in respect of earlier years (Refer Note below) .............................................................. Regulatory Assets/(Liabilities) on deferred tax expense/ (income) [Refer Note 35 (iii)] ..................................................................... Closing Regulatory Assets (Net) .............................................................. (A) (B) (C) (D) (E) (F) (A + B + C + D + E + F) As at 31st March, 2019 ` crore 1,310.19 As at 31st March, 2018 ` crore 1,888.00 2,282.00 2,322.91 901.00 (3,382.00) (320.03) (519.03) 29.15 (193.76) 274.26 98.19 999.00 953.09 (3,068.00) (444.00) (236.00) (49.00) Nil Nil (292.81) 1,310.19 During the year, pursuant to receipt of true-up tariff order from the Regulatory Commission for the years 2014-15, 2015-16 and 2016-17, the Company has recognised net income of ₹ 91.95 crore comprising of a credit of ₹ 274.26 crore in regulatory income and a charge of ₹ 182.31 crore to revenue from operations. 278 I Standalone Financials 100th Annual Report 2018-19 21a. Share Capital Authorised Notes to the Financial Statements As at 31st March, 2019 Number ` crore As at 31st March, 2018 Number ` crore Equity Shares of ` 1/- each ............................................................................................................. Cumulative Redeemable Preference Shares of ` 100/- each ............................................ 350,00,00,000 2,29,00,000 350.00 229.00 579.00 350,00,00,000 2,29,00,000 350.00 229.00 579.00 Issued Equity Shares [including 28,32,060 shares (31st March, 2018 - 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 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, 2018 - 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 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, 2018 - ` 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] .. 276,17,00,970 276.17 276,17,00,970 276.17 270,47,73,510 270.48 270,47,73,510 270.48 0.04 270.44 0.06 270.50 16,52,300 0.04 270.44 0.06 270.50 Add: Equity Shares forfeited - Amount paid ............................................................................ Total Subscribed and Paid-up Share Capital ...................................................................................... 16,52,300 (i) Reconciliation of the shares outstanding at the beginning and at the end of the reporting period Equity Shares At the beginning of the year ............................................................................................ Issued during the year ........................................................................................................ Outstanding at the end of the year ............................................................................... As at 31st March, 2019 Number ` crore As at 31st March, 2018 Number ` crore 270,64,25,810 Nil 270,64,25,810 270.50 Nil 270.50 270,64,25,810 Nil 270,64,25,810 270.50 Nil 270.50 (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 final 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 Equity Shares of ` 1/- each fully paid Tata Sons Pvt. Ltd. ............................................................................................................... Life Insurance Corporation of India ............................................................................... Matthews Pacific Tiger Fund............................................................................................. As at 31st March, 2019 % Holding Number As at 31st March, 2018 % Holding Number 83,97,99,682 20,97,31,735 18,03,16,487 31.05 7.75 6.67 83,97,99,682 31,79,60,364 17,79,49,592 31.05 11.76 6.58 21b. Unsecured Perpetual Securities 11.40% Unsecured Perpetual Securities .......................................................................................................................... Add: Movement during the year ......................................................................................................................................... Total .............................................................................................................................................................................................. As at 31st March, 2019 ` crore 1,500.00 Nil 1,500.00 As at 31st March, 2018 ` 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 279 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 22. Other Equity Notes to the Financial Statements As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore General Reserve Opening Balance ..................................................................................................................... Closing Balance ........................................................................................................................ Securities Premium Opening Balance ..................................................................................................................... Closing Balance ........................................................................................................................ Debenture Redemption Reserve Opening Balance ..................................................................................................................... Add/(Less): Amount transferred from/(to) Retained Earnings (Net) ...................... Closing Balance ........................................................................................................................ Capital Redemption Reserve Opening Balance ..................................................................................................................... Closing Balance ........................................................................................................................ Capital Reserves Opening Balance ..................................................................................................................... Closing Balance ........................................................................................................................ Statutory Reserve Opening Balance ..................................................................................................................... Closing Balance ........................................................................................................................ Retained Earnings (Refer Note 1 below) Opening balance ..................................................................................................................... Add: Profit/(Loss) for the year ............................................................................................ Transfer from Debenture Redemption Reserve (Net)..................................... Less: Other Comprehensive Income/(Expense) arising from Remeasurement of Defined Benefit Obligation (Net of Tax) ......................................................... Payment of Dividend (Refer Note 2 below)........................................................ Tax on Dividend ........................................................................................................... Transfer from Equity Instrument through Other Comprehensive Income (Refer Note 3 below) ................................................................................................... Distribution on Unsecured Perpetual Securities (Net of Tax) ...................... Closing Balance ........................................................................................................................ Equity Instruments through Other Comprehensive Income Opening Balance ..................................................................................................................... Add/(Less): Transfer to Retained Earnings (Refer Note 3 below) .......................... Other Comprehensive Income - Current Tax ........................................ Change in Fair Value of Equity Instruments through Other Comprehensive Income ............................................................................... Change in Fair Value of Equity Instruments classified as held for sale ........................................................................................................................... Gain on sale of Investment classified at fair value through other comprehensive income ................................................................................ Deferred Tax ...................................................................................................... Closing Balance ........................................................................................................................ Total ...................................................................................................................................................... 3,853.98 3,853.98 5,634.98 5,634.98 1,000.61 (578.66) 421.95 1.85 1.85 61.66 61.66 660.08 660.08 1,878.99 1,708.58 578.66 13.75 351.99 Nil 735.49 110.88 1,075.13 2,954.12 (374.12) 735.49 Nil 0.17 (31.05) 0.01 (0.02) 330.48 13,919.10 3,853.98 3,853.98 5,634.98 5,634.98 1,000.90 (0.29) 1,000.61 1.85 1.85 61.66 61.66 660.08 660.08 5,361.42 (3,150.52) 0.29 9.08 351.99 33.81 (174.74) 112.06 (3,482.43) 1,878.99 (253.40) (174.74) (37.12) (400.44) Nil 99.59 391.99 (374.12) 12,718.03 280 I Standalone Financials 100th Annual Report 2018-19 22. Other Equity (Contd.) Notes: Notes to the Financial Statements 1. Includes gain on fair valuation of land which is not available for distribution ` 222.31 crore (31st March, 2018 - ` 222.31 crore). 2. The shareholders of the Company in their meeting held on 27th July, 2018 approved final dividend of ` 1.30 per share aggregating ` 351.99 crore (excluding dividend distribution tax) for the financial year 2017-18. The said dividend was paid to the holders of fully paid equity shares on 30th July, 2018. 3. The Company has sold certain investments carried at fair value through other comprehensive income. The resultant (gain)/loss of ` 735.49 crore (31st March, 2018 - ` (174.74) crore) has been transferred from Equity Instruments through Other Comprehensive Income to Retained Earnings. 4. In respect of the year ended 31st March, 2019, the directors have proposed a dividend of ` 1.30 per share (31st March, 2018 - ` 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 (31st March, 2018 - ` 351.99 crore) (excluding Dividend Distribution Tax). 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 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 are 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 Pvt. Ltd. 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. Statutory Reserves Statutory Reserve consists of Special Appropriation towards Project Cost, Development Reserve and Investment Allowance Reserve. Special appropriation to project cost - Due to high capital investment required for the expansion in the electricity industry, the Maharashtra State Government permits part of the capital cost of approved projects to be collected through the electricity tariff and held as a special appropriation. Development Reserve / Investment Allowance Reserve - Until 1978, the Companies made appropriations to a Development Reserve and an Investment Allowance Reserve as required by the Income Tax Act, 1956. New appropriations to these reserves are no longer required due to changes in Indian law. An amount equal to 0.5% on the accumulation in the Investment Allowance Reserve was included in the reasonable return calculation. Retained Earnings Retained Earnings are the profits of the Company earned till date net of appropriations. Equity Instruments 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 281 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 23. Non-current Borrowings Notes to the Financial Statements The Tata Power Company Limited (i) Unsecured - At Amortised Cost Redeemable Non-Convertible Debentures (a) 10.75% Series 2072 ........................................ (b) 7.99% Series 2024 ......................................... (c) 9.30% Series 2023 ......................................... (d) 9.48% Series 2019 ......................................... (e) 7.70% Series 2019 (Refer Note 2) ............. Term Loans from Banks (f ) ICICI Bank ............................................................ (g) Axis Bank ............................................................ Deferred Payment Liabilities (h) Sales Tax Deferral ............................................. (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 ......................................... Term Loans from Banks (f ) HDFC Bank ......................................................... (g) ICICI Bank ............................................................ (h) Kotak Mahindra Bank ..................................... State Bank of India .......................................... (i) (j) IDFC Bank ........................................................... (k) Axis Bank ............................................................ Term Loans from Others (l) Asian Development Bank ............................. Indian Renewable Energy Development (m) Agency Ltd. ........................................................ Non-current As at 31st March, 2019 Current Maturities ` crore ` crore * Non-current As at 31st March, 2018 Current Maturities ` crore ` crore * 1,492.31 1,496.35 Nil Nil Nil 2,988.66 523.55 333.06 856.61 (A) 8.50 3,853.77 105.86 124.90 209.63 Nil Nil 440.39 917.81 624.76 712.73 1,234.17 623.44 333.38 4,446.29 Nil Nil Nil 500.00 Nil 500.00 150.00 166.67 316.67 8.50 825.17 16.00 25.00 Nil Nil Nil 41.00 395.00 120.00 150.93 94.94 158.75 166.67 1,086.29 1,490.45 1,495.55 499.00 499.81 Nil 3,984.81 Nil Nil Nil Nil Nil Nil Nil 1,875.00 1,875.00 605.00 Nil 605.00 17.00 4,001.81 11.33 2,491.33 121.84 149.86 209.58 Nil Nil 481.28 1,062.81 Nil 438.75 1,329.10 782.28 Nil 3,612.94 16.00 25.00 Nil 500.00 500.00 1,041.00 95.00 Nil 38.75 94.95 341.56 Nil 570.26 6.33 12.67 19.01 12.67 2.94 9.27 4,895.95 8,749.72 5.87 18.54 1,145.83 1,971.00 8.80 27.81 4,122.03 8,123.84 5.87 18.54 1,629.80 4,121.13 (B) Total .................................................................................................. (A) + (B) * Amount disclosed under Other Current Financial Liabilities (Refer Note 24) Security (i) 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. (ii) (iii) (iv) 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, Gadag in Karnataka and immovable properties in Jamnagar, Gujarat. The Debentures mentioned in (c) have been secured by a charge on the land situated at Village Takve Khurd (Maharashtra) and movable fixed assets (except the Wind assets) including movable machinery, machinery spares, tools and accessories but excluding vehicles, launches and barges, present and future. The Debentures mentioned in (d) and (e) have been secured by a pari passu charge on land in Village Takve Khurd (Maharashtra) and all buildings and structures and all plant and machinery whether fixed or movable attached to the land at the thermal and hydro power stations. 282 I Standalone Financials 100th Annual Report 2018-19 23. Non-current Borrowings (Contd.) Notes to the Financial Statements (v) (vi) (vii) (viii) The Loans mentioned in (f ), (h), (i) and (j) have been secured by 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, present and future, but excluding vehicles, launches and barges. The Loans mentioned in (g) have also been secured by whole of current assets of the Company, present and future, in a first pari passu manner. The Loan mentioned in (k) has been secured by pari passu charge on all movable Fixed Assets (excluding land and building), present and future, except (1) assets of 120 MW waste heat recovery plant located at Haldia (2) assets of Strategic Engineering Division (3) assets of all wind projects, both present and future, including movable machinery, machinery spares, tools and accessories, present and future (excluding vehicles, launches and barges, present and future). The Loans from Asian Development Bank and Indian Renewable Energy Development Agency Limited mentioned in (l) and (m) respectively have been secured by a charge on the movable and immovable properties situated at Khandke, Brahmanvel and Sadawaghapur in Maharashtra including the projects’ current and future receivables. Terms of Repayment Particulars (i) Unsecured - At Amortised Cost Redeemable Non-Convertible Debentures (a) (b) (c) 10.75% Series 2072 (Refer Note 1 below) .................................. 7.99% Series 2024 ............................................................................. 9.48% Series 2019 ............................................................................. Term Loans from Banks (Refer Note 4 below) (d) (e) ICICI Bank ................................................................................................ Axis Bank ................................................................................................ Amount Outstanding as at 31st March, 2019 FY 19-20 FY 20-21 FY 21-22 Financial Year FY 22-23 FY 23-24 ` crore FY 24-29 FY 29-30 and onwards 1,500.00 1,500.00 500.00 - - 500.00 - 300.00 - - 300.00 - - 300.00 - - 300.00 - - 300.00 - 1,500.00 - - 675.00 500.00 150.00 166.67 300.00 166.67 225.00 166.66 - - - - - - Deferred Payment Liabilities (f) Sales Tax Deferral (Refer Note 3 below) ....................................... 17.00 8.50 5.67 2.83 - - (ii) Secured - At Amortised Cost Redeemable Non-Convertible Debentures (a) (b) (c) 9.15% Series 2025 ............................................................................. 9.15% Series 2025 ............................................................................. 9.40% Series 2022 ............................................................................. Term Loans from Banks (Refer Note 4 below) (d) HDFC Bank ............................................................................................. Kotak Mahindra Bank ......................................................................... (e) State Bank of India .............................................................................. (f) (g) IDFC Bank ............................................................................................... (h) Axis Bank ................................................................................................ (i) ICICI Bank ................................................................................................ Term Loans from Others (Refer Note 4 below) (j) (k) Asian Development Bank ................................................................. Indian Renewable Energy Development Agency Ltd. ........... Less: Impact of recognition of borrowing at amortised cost using effective interest method.. .......................................................................... Notes: 122.00 150.00 210.00 16.00 25.00 - 16.00 25.00 - 16.00 20.00 - 16.00 20.00 210.00 16.00 20.00 - 42.00 40.00 - 1,312.81 863.66 1,329.11 782.19 500.00 750.00 395.00 150.94 94.93 158.75 166.67 120.00 74.38 150.94 94.93 76.25 166.67 120.00 83.75 150.94 94.94 76.25 166.66 120.00 83.75 50.93 94.94 76.25 - 150.00 83.75 50.93 189.88 146.25 - 240.00 501.56 305.93 759.49 248.44 - - 19.01 8.80 - - 10,739.58 1,971.00 1,505.78 1,423.03 1,001.87 1,046.81 2,197.42 12.67 5.87 6.33 2.94 - - - - - - 18.86 10,720.72 - - - - 90.62 3.05 - - - - - - 1,593.67 1 2 3 4 The 10.75% Redeemable Non-Convertible Debentures are redeemable at par at the end of 60 years from the date of allotment viz. 21st August, 2072. The Company has the call option to redeem the same at the end of 10 years viz. 21st August, 2022 and at the end of every year thereafter. The 7.70% Redeemable Non-Convertible Debentures has a Put/Call option at the end of 24 months from the deemed date of allotment i.e. 3rd August, 2018 which has been exercised by the debentureholders and accordingly debentures of ` 1,875.00 crore were redeemed on 3rd August, 2018. Sales Tax Deferral is repayable in 150 instalments commencing from April, 2013 and repayable in full by March, 2022. The rate of interest for term loans from banks ranges from 8.45% to 9.25% and rate of interest for term loans from others is 9.36%. Standalone Financials I 283 - - - E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 24. Other Financial Liabilities Notes to the Financial Statements The Tata Power Company Limited As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Non-current - At Amortised Cost Security Deposits from Customers ................................................................................... Guarantee Commission Obligation .................................................................................. Total ....................................................................................................................................................... Current - At Amortised Cost (a) Current Maturities of Non-current Borrowings (Refer Note 23) ............................. Interest accrued but not due on Borrowings ................................................................ (b) Interest accrued but not due on Borrowings from Related Party .......................... (c) Investor Education and Protection Fund shall be credited by the following (d) amounts namely: ** Unpaid Dividend ........................................................................................................... Unpaid Matured Deposits .......................................................................................... Unpaid Matured Debentures .................................................................................... (e) Other Payables Payables for Capital Supplies and Services ........................................................................................ Security Deposits from Electricity Consumers ............................................................................... Security Deposits from Others ........................................................................................................................... Tender Deposits from Vendors ........................................................................................................................... Financial Guarantee Obligation towards Lenders of Jointly Controlled Entity [Refer Note 8(b)] ................................................................................................................................................. Other Financial Liabilities .......................................................................................................................................... At Fair Value through Profit and Loss (f ) Other Payables 33.53 9.23 42.76 1,971.00 189.09 0.38 22.01 0.03 0.09 252.33 216.72 4.33 2.14 103.74 133.57 Derivative Contracts (Net) ........................................................................................................................................ Nil Total ....................................................................................................................................................... 2,895.43 32.15 12.59 44.74 4,121.13 303.90 0.38 17.70 0.03 0.09 203.43 190.52 13.44 1.13 97.77 97.64 0.82 5,047.98 ** Includes amounts outstanding aggregating ` 1.25 crore (31st March, 2018 - ` 0.88 crore) for more than seven years pending legal cases. 284 I Standalone Financials 100th Annual Report 2018-19 25. Provisions Accounting Policy Notes to the Financial Statements 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). Present obligations arising under onerous contracts are recognised and measured as provisions with charge to statement of profit and loss. 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. 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. Defined benefits plans The cost of providing benefits under the defined benefit plan is determined using the projected unit credit method. Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods. Past service costs are recognised in the statement of profit and loss on the earlier of: - - The date of the plan amendment or curtailment, and The date that the Company recognises related restructuring costs Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and loss: - - Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non routine settlements; and Net interest expense or income. 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. The cost of the defined benefit gratuity plan and other post-employment medical benefits and the present value of the gratuity obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Current and other non-current 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 current 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 non-current 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. Standalone Financials I 285 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 25. Provisions (Contd.) Notes to the Financial Statements Non-current Provision for Employee Benefits Compensated Absences ..................................................................................................... Post-Employment Medical Benefits [Refer Note 25 (2.3)] ....................................... Other Defined Benefit Plans [Refer Note 25 (2.3)] ..................................................... Other Employee Benefits .................................................................................................... Total ..................................................................................................................................................... Current Provision for Employee Benefits Compensated Absences ..................................................................................................... Post-Employment Medical Benefits [Refer Note 25 (2.3)] ....................................... Other Defined Benefit Plans [Refer Note 25 (2.3)] ..................................................... Other Employee Benefits .................................................................................................... Total ..................................................................................................................................................... As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 80.71 45.81 48.99 20.04 195.55 5.00 1.80 6.09 1.85 14.74 74.31 30.70 57.90 19.19 182.10 4.58 1.23 6.64 2.99 15.44 Employee Benefit Plans 1. Defined Contribution plan The Company makes superannuation fund contributions to defined contribution plan for eligible employees. Under the scheme, the Company is required to contribute a specified percentage of the payroll costs. The Company has no obligation, other than the contribution payable to the fund. The Company recognises contribution payable to the superannuation fund scheme as an expense, when an employee renders the related service. The Company has recognised ₹ 9.19 crore (31st March, 2018 - ₹ 9.53 crore) for superannuation contribution in the Statement of Profit and Loss. The said amount is excluding of amounts recognised by the Strategic Engineering Division (SED) (Discontinued operations). The contribution payable to the plan by the Company is at rates specified in the rules of the scheme. 2. Defined benefit plans 2.1 The Company operates the following unfunded/funded defined benefit plans: Funded: Provident Fund The Company makes Provident Fund contributions to defined benefit plans for eligible employees. Under the scheme, 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 expects shortfall of ` 8.27 crore which has been provided as an expenditure during the year. The significant assumptions used for the purpose of the actuarial valuations were as follows: Particulars Interest rate .......................................................................................................................................... Discount rate ........................................................................................................................................ Contribution during the year (₹ crore) ....................................................................................... Short fall provided as expenditure for the year ...................................................................... 31st March, 2019 8.65% p.a. 7.40% p.a. 19.15 8.27 31st March, 2018 8.55% p.a. 7.70% p.a. 19.04 Nil 286 I Standalone Financials 100th Annual Report 2018-19 25. Provisions (Contd.) Gratuity Notes to the Financial Statements 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. 2.2 The principal assumptions used for the purposes of the actuarial valuations were as follows: 31st March, 2019 7.40% p.a. Valuation as at Discount Rate ................................................................................................................. 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 Annual Increase in Healthcare Cost ....................................................................... 31st March, 2018 7.70% p.a. 7% p.a. 5% p.a. 2.5% p.a. 0.50% p.a. 7% p.a. 5% p.a. 2.5% p.a. 0.50% p.a. 1% p.a. 0.50% p.a. 3% p.a. Indian Assured Lives Mortality (2006-08) (modified) Ult 8% p.a. 1% p.a. 0.50% p.a. 3% p.a. Indian Assured Lives Mortality (2006-08) (modified) Ult 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, 2017 Current service cost ..................................................................................................... Past service cost ............................................................................................................ Interest Cost/(Income) ................................................................................................ Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations ................................................................................ Amount recognised in Statement of Profit and Loss - Continuing Operations..................................................................................................................... Remeasurement (gains)/losses Return on plan assets excluding amounts included in interest cost/ (income) ........................................................................................................................... Actuarial (gains)/losses 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 Employer contribution ............................................................................................... Benefits paid .................................................................................................................. Acquisitions credit/(cost) ........................................................................................... Add: Amounts recognised in current year - Discontinued operations ...... Less: Transferred to Assets/Liabilities held for sale - Discontinued operations ............................................................................................................. Balance as at 31st March, 2018 ........................................................................... Present value of obligation ` crore 257.40 17.60 Nil 17.00 Fair value of plan assets ` crore (248.38) Nil Nil (17.07) (1.97) 32.63 Nil 9.21 (40.33) 15.33 (15.79) Nil (19.43) (4.68) 1.97 (14.30) 237.80 Nil (17.07) 1.08 Nil Nil Nil 1.08 Nil Nil 0.16 Nil Nil (264.21) Net amount ` crore 9.02 17.60 Nil (0.07) (1.97) 15.56 1.08 9.21 (40.33) 15.33 (14.71) Nil (19.43) (4.52) 1.97 (14.30) (26.41) Standalone Financials I 287 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 25. Provisions (Contd.) Funded Plan: Balance as at 31st March, 2018* ......................................................................... Current service cost ..................................................................................................... Past service cost ............................................................................................................ Interest Cost/(Income) ................................................................................................ Less: Amount recognised in Statement of Profit and Loss - Discontinued Operations ................................................................................ Amount recognised in Statement of Profit and Loss - Continuing Operations..................................................................................................................... Remeasurement (gains)/losses Return on plan assets excluding amounts included in interest cost/ (income) ........................................................................................................................... Actuarial (gains)/losses 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 ............................ Employer contribution ............................................................................................... Benefits paid .................................................................................................................. Acquisitions credit/(cost) ........................................................................................... Add: Amounts recognised in current year - Discontinued Operations ..... Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations ............................................................................................................. Balance as at 31st March, 2019* ......................................................................... * Net asset is classified as “Other Current Assets”. Unfunded: Post Employment Medical Benefits Present value of obligation ` crore 237.80 15.04 Nil 18.24 Fair value of plan assets ` crore (264.21) Nil Nil (20.34) (0.58) 32.70 Nil Nil 5.79 15.97 21.76 Nil (30.49) (1.52) 0.58 (15.29) 245.54 Nil (20.34) 4.26 Nil Nil Nil 4.26 Nil Nil Nil Nil Nil (280.29) Net amount ` crore (26.41) 15.04 Nil (2.10) (0.58) 12.36 4.26 Nil 5.79 15.97 26.02 Nil (30.49) (1.52) 0.58 (15.29) (34.75) 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 lumpsum 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 lumpsum 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. 288 I Standalone Financials 100th Annual Report 2018-19 25. Provisions (Contd.) Unfunded Plan: Notes to the Financial Statements Balance as at 1st April, 2017 ............................................................................................................................................................. Current service cost ................................................................................................................................................................................. Past service cost ........................................................................................................................................................................................ Past service cost - Plan amendments ................................................................................................................................................ Interest Cost/(Income) ............................................................................................................................................................................ Add/(Less): Amount recognised in Statement of Profit and Loss - Discontinued Operations ....................................... Amount recognised in Statement of Profit and Loss - Continuing Operations ....................................................... Remeasurement (gains)/losses Actuarial (gains)/losses 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/(cost) ....................................................................................................................................................................... Add: Amounts recognised in current year - Discontinued Operations ................................................................................. Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations ................................................................. Balance as at 31st March, 2018 ....................................................................................................................................................... Balance as at 31st March, 2018 ....................................................................................................................................................... Current service cost ................................................................................................................................................................................. Past service cost ........................................................................................................................................................................................ Past service cost - Plan amendments ................................................................................................................................................ Interest Cost/(Income) ............................................................................................................................................................................ Add/(Less): Amount recognised in Statement of Profit and Loss - Discontinued Operations ....................................... Amount recognised in Statement of Profit and Loss - Continuing Operations ....................................................... Remeasurement (gains)/losses Actuarial (gains)/losses arising from changes in demographic assumptions .................................................................... Actuarial (gains)/losses arising from changes in financial assumptions ............................................................................. Actuarial (gains)/losses arising from experience .......................................................................................................................... Less: Amount recognised in other comprehensive income - Discontinued operations ................................................. Amount recognised in Other Comprehensive Income ........................................................................................................ Benefits paid .............................................................................................................................................................................................. Acquisitions credit/(cost) ....................................................................................................................................................................... Add: Amounts recognised in current year - Discontinued Operations ................................................................................. Less: Transferred to Assets/Liabilities held for sale - Discontinued Operations ................................................................. Balance as at 31st March, 2019 ....................................................................................................................................................... Amount ` crore 68.05 2.77 0.27 4.03 4.50 (0.64) 10.93 8.46 (1.01) 18.79 26.24 (5.20) (1.46) 0.64 (2.73) 96.47 96.47 4.16 0.24 4.58 7.78 (0.44) 16.32 Nil 3.17 (8.35) 0.30 (4.88) (2.85) 0.05 0.44 (2.86) 102.69 Employee Benefit Plans 2.4 Sensitivity analysis The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is: Change in assumption 31st March, 2019 31st March, 2018 Increase in assumption 31st March, 2019 ` crore 31st March, 2018 ` crore Discount rate .............................. Salary/Pension growth rate .. Mortality rates ........................... Healthcare cost ......................... 0.50% 0.50% 1 year 0.50% 0.50% 0.50% 1 year 0.50% Decrease by Increase by Decrease by Increase by 14.70 11.91 4.09 3.59 13.21 11.68 3.30 2.45 Increase by Decrease by Increase by Decrease by Decrease in assumption 31st March, 2019 ` crore 31st March, 2018 ` crore 15.94 11.22 4.00 3.22 14.45 10.99 3.18 2.05 The above sensitivity analysis is 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. Standalone Financials I 289 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 25. Provisions (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 .................................................. Funded Unfunded 31st March, 2019 ` crore 21.75 32.76 34.02 31.99 31.86 176.73 31st March, 2018 ` crore 18.64 29.48 30.63 32.86 30.66 164.82 31st March, 2019 ` crore 8.58 9.07 9.11 9.21 9.41 50.58 31st March, 2018 ` crore 8.57 8.94 9.13 9.15 9.18 47.16 The weighted average duration of the defined benefit obligation is 8.1 years (31st March, 2018 - 8.1 years). The contribution expected to be made by the Company during the financial year 2019-20 is Nil. 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 and medical cost 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. 2.7 Major categories of plan assets: Plan assets are funded with the trust set up by the Company. The trust invests the funds in various financial instruments. Major categories of plan assets are as follows: Quoted Equity Instruments ............................................................................ Debt Instruments ............................................................................... Government Securities ..................................................................... Cash & Cash Equivalents .................................................................. As at 31st March, 2019 % ` crore 20% 56.07 21% 60.08 37% 103.77 22% 60.38 100% 280.30 As at 31st March, 2018 % ` crore 21% 56.45 46% 121.47 21% 54.63 12% 31.66 100% 264.21 26. Deferred Tax Liabilities (Net) (Refer Note 35) Deferred Tax Assets .......................................................................................................................... Deferred Tax Liabilities ................................................................................................................... Net Deferred Tax Liabilities ....................................................................................................... As at 31st March, 2019 ` crore 1,024.21 1,607.70 583.49 As at 31st March, 2018 ` crore 1,310.41 1,546.40 235.99 290 I Standalone Financials 100th Annual Report 2018-19 27. Other Liabilities Notes to the Financial Statements Non-current Consumers’ Benefit Account ............................................................................................ Liabilities towards Consumers [Refer Note 3.13 (c)] ................................................ Deferred Revenue - Service Line Contributions from Consumers ...................... Deferred Rent Liability ........................................................................................................ Total ....................................................................................................................................................... Current Statutory Liabilities .............................................................................................................. Advance from Customers/Public Utilities .................................................................... Statutory Consumer Reserves.......................................................................................... Liabilities towards Consumers [Refer Note 3.13 (c)] ................................................ Other Liabilities ..................................................................................................................... Total ....................................................................................................................................................... 28. Current Borrowings Unsecured - At Amortised Cost From Banks (a) (b) Buyer’s Line of Credit ................................................................................................ Term Loans (i) Repayable on Demand .................................................................................. (ii) Others .................................................................................................................. Bank Overdraft - Repayable on Demand ........................................................... From Related Parties ..................................................................................................................... From Others Commercial Paper [maximum amount outstanding during the year is ` 6,550 crore (31st March, 2018 - ` 3,650 crore)] ................................................................................................. (c) Secured - At Amortised Cost From Banks Short-term Loans ........................................................................................................ Total ........................................................................................................................................... Note: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore 21.94 Nil 116.87 44.73 183.54 156.79 117.16 561.76 11.50 1.91 849.12 21.94 66.00 112.84 45.71 246.49 95.61 212.92 545.76 338.22 1.08 1,193.59 As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Nil 800.00 200.00 2.19 Nil 5,729.61 6,731.80 Nil Nil 6,731.80 338.88 800.00 Nil 95.44 125.00 2,967.13 4,326.45 0.01 0.01 4,326.46 The rate of interest for short-term loans from banks ranges from 7.57% to 8.95% and rate of interest from others ranges from 6.68% to 8.16%. 29. Current Tax Liabilities Income Tax Payable (Net) ............................................................................................................. Total ..................................................................................................................................................... As at 31st March, 2019 ` crore 107.67 107.67 As at 31st March, 2018 ` crore 107.67 107.67 Standalone Financials I 291 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 30. Revenue from Operations Revenue recognition Accounting Policy Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Description of performance obligations are as follows : (i) Sale of Power - Generation (Thermal and Hydro) Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered. The Company as per the prevalent tariff regulations is required to recover its Annual Revenue Requirement (‘ARR’) comprising of expenditure on account of fuel cost, operations and maintenance expenses, financing costs, taxes and assured return on regulator approved equity with additional incentive for operational efficiencies. Accordingly, rate per unit is determined using input method based on the Company’s efforts to the satisfaction of a performance obligation to deliver power. As per tariff regulations, the Company determines ARR and any surplus/shortfall in recovery of the same is accounted as revenue. (ii) Sale of Power - Generation (Wind and Solar) Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the contracted rate. (iii) Transmission of Power Revenue from transmission of power is recognised net of cash discount over time for transmission of electricity. The Company as per the prevalent tariff regulations is required to recover its Annual Revenue Requirement (‘ARR’) comprising of expenditure on account of operations and maintenance expenses, financing costs, taxes and assured return on regulator approved equity with additional incentive for operational efficiencies. Input method is used to recognize revenue based on the Company’s efforts or inputs to the satisfaction of a performance obligation to deliver power. As per tariff regulations, the Company determines ARR and any surplus/shortfall in recovery of the same is accounted as revenue. (iv) Sale of Power - Distribution Revenue from sale of power is recognised net of cash discount over time for each unit of electricity delivered at the pre determined rate. (v) Rendering of Services Revenue from a contract to provide services is recognized over time based on output method where direct measurements of value to the customer based on survey’s of performance completed to date. Revenue is recognised net of cash discount at a point in time at the contracted rate. (vi) Consumers are billed on a monthly basis and are given average credit period of 30 to 45 days for payment. No delayed payment charges (‘DPC’) is charged for the initial 30 days from the date of receipt of invoice by customers. Thereafter, DPC is charged at the rate prescribed by the Power Purchase Agreement on the outstanding balance once the dues are received. Revenue in respect of delayed payment charges and interest on delayed payments leviable as per the relevant contracts are recognised on actual realisation or accrued based on an assessment of certainty of realization supported by either an acknowledgement from customers or on receipt of favourable order from regulator / authorities. There is no significant judgement involved while evaluating the timing as to when customers obtain control of promised goods and services. 292 I Standalone Financials 100th Annual Report 2018-19 30. Revenue from Operations (Contd.) Notes to the Financial Statements (a) Revenue from Power Supply and Transmission Charges ................. (Less)/Add: Income to be adjusted in future tariff determination (Net) (Less)/Add: Income to be adjusted in future tariff determination (Net) in respect of earlier years (Refer Note 20) ................................ (b) Revenue from Power Supply - Assets Under Finance Lease ............ (c) Project/Operation Management Services ............................................... (d) Income from Finance Lease ............................................................................. (e) Other Operating Revenue Rental of Land, Buildings, Plant and Equipment, etc................................. Income in respect of Services Rendered ........................................................ Amortisation of Service Line Contributions ................................................. Income from Storage and Terminalling.......................................................... Sale of Fly Ash .......................................................................................................... Sale of Carbon Credits .......................................................................................... Sale of Renewable Energy Certificates ........................................................... Miscellaneous Revenue........................................................................................ Total ..................................................................................................................................... Details of Revenue from Contract with Customers Particulars Total Revenue from Contract with Customers ....................................................... Add: Cash Discount/Rebates etc. ................................................................................ Total Revenue as per Contracted Price ................................................................ For the year ended 31st March, 2019 ` crore 6,479.75 255.34 For the year ended 31st March, 2018 ` crore 6,196.75 (56.00) (182.31) 6,552.78 1,030.64 125.03 86.70 17.14 62.72 7.46 15.39 2.21 3.89 0.90 27.97 137.68 7,932.83 Nil 6,140.75 1,034.51 128.96 92.32 12.13 59.89 8.99 14.99 4.88 9.32 Nil 29.85 140.05 7,536.59 For the year ended 31st March, 2019 ` crore 7,789.67 37.08 7,826.75 For the year ended 31st March, 2018 ` crore 7,383.98 35.80 7,419.78 Transaction Price - Remaining Performance Obligation The remaining performance obligation disclosure provides the aggregate amount of the transaction price yet to be recognised as at the end of the reporting period and an explanation as to when the Company expects to recognise these amounts in revenue. Applying the practical expedient as given in Ind AS 115, the Company has not disclosed the remaining performance obligation related disclosures for contracts as the revenue recognised corresponds directly with the value to the customer of the entity’s performance completed to date. There are no aggregate value of performance obligations that are completely or partially unsatisfied as of 31st March, 2019, other than those meeting the exclusion criteria mentioned above. Revenue is disaggregated by type and nature of product or services. The table also includes the reconciliation of the disaggregated revenue with the Company’s reportable segment. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 293 The Tata Power Company Limited 30. Revenue from Operations (Contd.) Notes to the Financial Statements Particulars Reportable Segment Power Other than Power Total For the year ended 31st March, 2019 For the year ended 31st March, 2018 For the year ended 31st March, 2019 For the year ended 31st March, 2018 For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 Nature of Goods/Services Generation of power Thermal and Hydro ................................................. 2,075.13 1,840.95 Wind and Solar ......................................................... Transmission of power .................................................. 99.24 611.79 116.93 644.09 Distribution of power..................................................... 3,766.62 3,538.78 Sale of Power from Assets Under Lease .................. 1,030.64 1,034.51 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 2,075.13 1,840.95 99.24 611.79 116.93 644.09 3,766.62 3,538.78 1,030.64 1,034.51 Project/Operation Management Services .............. Others .................................................................................. Nil 42.87 Nil 43.81 125.03 38.35 128.96 35.95 125.03 81.22 128.96 79.76 (A) Revenue from Contracts with Customers 7,626.29 7,219.07 163.38 164.91 7,789.67 7,383.98 in Regulatory Deferral Net Movement Balances ...................................................................... Net Movement in Regulatory Deferral Balances in respect of earlier years ................... (B) Other Revenue (519.03) (236.00) 274.26 Nil Nil Nil Nil Nil (519.03) (236.00) 274.26 Nil 7,381.52 6,983.07 163.38 164.91 7,544.90 7,147.98 Other Revenue ......................................................... 143.16 151.87 Nil 0.74 143.16 152.61 Continued Operations from Revenue [including Net Movement in Regulatory Deferral Balances]......................................................... 7,524.68 7,134.94 163.38 165.65 7,688.06 7,300.59 (C) Revenue from Discontinued Operations .... Nil Nil 143.59 286.74 143.59 286.74 294 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements 30. Revenue from Operations (Contd.) Contract Balances As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Contract Assets Recoverable from Consumers - [Refer Note 3.13 (c)] Non-current .................................................................................................................. Current ............................................................................................................................ Total Contract Assets ........................................................................................................ 404.79 787.00 1,191.79 Contract liabilities Liabilities towards Consumers [Refer Note 3.13 (c)] Non-current .................................................................................................................. Current ............................................................................................................................ Total Contract Liabilities ................................................................................................ Receivables Trade Receivables (Gross) .................................................................................................. Unbilled Revenue for passage of time .......................................................................... (Less): Allowance for Doubtful Debts ............................................................................ Net Receivables ................................................................................................................... Total .......................................................................................................................................... Nil 11.50 11.50 1,488.95 41.56 (46.75) 1,483.76 2,687.05 675.98 136.38 812.36 66.00 338.22 404.22 1,194.47 53.75 (36.66) 1,211.56 2,428.14 Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract liability is the entity’s obligation to transfer goods or services to a customer for which the entity has received consideration from the customer in advance. Contract assets are transferred to receivables when the rights become unconditional and contract liabilities are recognised as revenue as and when the performance obligation is satisfied. Significant changes in the contract assets and the contract liabilities balances during the year are as follows: As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Opening Balance Recoverable from consumers................................................................................. Liabilities towards consumers ................................................................................ (A) Income to be adjusted in future tariff determination (Net) .................................. Income to be adjusted in future tariff determination in respect of earlier years (Net) ............................................................................................................................... Revenue recognised during the year ............................................................................ Refund to Customers (including Company's distribution business) ................. Deferred tax recoverable/(payable) [Refer Note 34 (iii)] ......................................... Others ....................................................................................................................................... (B) Closing Balance Recoverable from consumers................................................................................. Liabilities towards consumers ................................................................................ (A-B) 812.36 (404.22) 408.14 255.34 (182.31) 100.00 288.70 322.42 (12.00) 772.15 1,191.79 (11.50) 1,180.29 983.73 (412.50) 571.23 (56.00) Nil 89.02 (27.59) (161.48) (7.04) (163.09) 812.36 (404.22) 408.14 Standalone Financials I 295 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 31. Other Income Accounting Policy 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 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. For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore (a) Interest Income (i) On Financial Assets carried at Amortised Cost Interest on Banks 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.......................................................................................................... (b) Dividend Income From Non-current Investments Subsidiaries ............................................................................................................. Joint Ventures ......................................................................................................... Associates ................................................................................................................. Others - Equity Investments Designated at FVTOCI ................................. From Current Investments Others ........................................................................................................................ (c) Gain/(Loss) on Investments Gain on Sale/Fair Value 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 .......................................................................................................... Total ................................................................................................................................................. 2.73 2.93 10.42 20.40 44.39 Nil 4.01 84.88 283.40 85.40 9.68 5.43 383.91 Nil 383.91 6.29 0.88 7.17 20.95 12.72 6.34 0.38 40.39 516.35 62.66 3.73 11.72 17.23 36.39 0.48 0.35 132.56 619.78 102.18 15.31 9.81 747.08 0.82 747.90 2.36 Nil 2.36 23.55 8.40 6.01 8.56 46.52 929.34 296 I Standalone Financials 100th Annual Report 2018-19 32. Employee Benefits Expense Notes to the Financial Statements Salaries and Wages ..................................................................................................................... Contribution to Provident Fund [Refer Note 25 (2.1)] .................................................... Contribution to Superannuation Fund [Refer Note 25 (1)] .......................................... Retiring Gratuities [Refer Note 25 (2.3)]............................................................................... Compensated Absences ........................................................................................................... Pension Scheme .......................................................................................................................... Staff Welfare Expenses ............................................................................................................... Less: Employee Cost Capitalised ............................................................................................. Employee Cost Inventorised .......................................................................................... Total ................................................................................................................................................. For the year ended 31st March, 2019 ` crore 500.72 27.42 9.19 12.36 22.15 13.23 88.51 673.58 For the year ended 31st March, 2018 ` crore 489.26 19.04 9.53 15.56 6.23 5.71 103.53 648.86 26.96 9.05 36.01 637.57 41.33 10.84 52.17 596.69 33. Finance Costs Accounting Policy 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. (a) Interest Expense: Borrowings - At Amortised Cost Interest on Debentures ........................................................................................ Interest on Euro Notes .......................................................................................... Interest on Loans - Banks and Financial Institutions ................................. Interest on Loans - Related Parties ................................................................... Others Interest on Consumer Security Deposits - At amortised cost ................ Other Interest and Commitment Charges (Refer Note 44) ..................... Less: Interest Capitalised (b) Other Borrowing Cost: Other Finance Costs .............................................................................................. Foreign Exchange Loss/(Gain) on Borrowings (Net) .................................. Total .................................................................................................................................................. Note: For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 ` crore 458.37 Nil 923.21 3.98 20.12 92.53 1,498.21 22.21 1,476.00 21.64 2.71 24.35 1,500.35 751.64 13.01 573.83 1.39 18.13 53.13 1,411.13 23.92 1,387.21 16.50 27.67 44.17 1,431.38 The weighted average capitalisation rate on the Company’s general borrowings is 8.63% per annum (31st March, 2018 - 8.45% per annum). Standalone Financials I 297 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 34. Other Expenses Notes to the Financial Statements The Tata Power Company Limited Consumption of Stores, Oil, etc. ................................................................................................... Rental of Land, Buildings, Plant and Equipment, etc............................................................ Repairs and Maintenance - (i) (ii) (iii) To Buildings and Civil Works ............................................................................................. To Machinery and Hydraulic Works ............................................................................... To Furniture, Vehicles, etc. ................................................................................................. Rates and Taxes .................................................................................................................................. Insurance .............................................................................................................................................. Other Operation Expenses ............................................................................................................. Ash Disposal Expenses .................................................................................................................... Travelling and Conveyance Expenses ........................................................................................ Consultants' Fees ............................................................................................................................... Auditors' Remuneration [Refer Note (i) below] ...................................................................... Cost of Services Procured ............................................................................................................... Net Loss/(Gain) on Foreign Exchange ........................................................................................ Allowance for Doubtful Debts and Advances (Net) ............................................................. Impairment of Non-current assets .............................................................................................. Impairment of Non-current Investments in Subsidiaries and Joint Ventures (Net) Donations [Refer Note (iii) below] ............................................................................................... Legal Charges ..................................................................................................................................... Corporate Social Responsibility Expenses [Refer Note (ii) below] ................................... Transfer to Contingency Reserve ................................................................................................. Miscellaneous Expenses ................................................................................................................. Total ....................................................................................................................................................... (i) Payment to the auditors For Statutory Audit .............................................................................................................. For Taxation Matters ............................................................................................................ For Other Services ................................................................................................................ For Reimbursement of Expenses .................................................................................... Service Tax/Goods and Service Tax on above ............................................................ 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 .................................................................... For the year ended 31st March, 2019 ` crore 23.58 29.62 For the year ended 31st March, 2018 ` crore 71.04 7.05 81.52 200.26 4.15 285.93 52.71 21.48 106.10 13.42 22.56 19.65 5.09 106.24 11.40 19.11 Nil Nil 20.00 24.93 12.66 16.00 11.39 801.87 95.86 195.37 5.89 297.12 66.61 24.83 100.58 16.92 21.03 44.15 5.92 116.47 19.92 (4.05) 6.00 (2.90) Nil 18.05 14.71 14.00 40.07 877.52 For the year ended 31st March, 2019 ` crore 3.54 0.13 0.48 0.22 0.72 5.09 For the year ended 31st March, 2018 ` crore 3.60 0.10 1.17 0.19 0.86 5.92 For the year ended 31st March, 2019 ` crore 12.05 0.61 12.66 12.65 For the year ended 31st March, 2018 ` crore 14.00 0.71 14.71 13.71 Nil 12.66 Nil 14.71 (iii) Donation Donation of ` 20.00 crore was given to Progressive Electoral Trust (31st March, 2018: ` Nil). 298 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements 34 a. Gain on sale of Investment classified at FVTOCI Particulars For the year ended 31st March, 2019 ` crore For the year ended 31st March, 2018 A. B. Loss on sale of investment in Tata Teleservices Limited Sales consideration ........................................................................ Less: Carrying Value Purchase cost of Investment ...................................................... (Less): Changes in fair value recognised in earlier years ... Gain on sale of investment in IEX Limited and Others Sales consideration ........................................................................ Less : Carrying Value Purchase cost of Investment ...................................................... ( Less): Changes in fair value recognised in earlier years ... 1,438.42 (1,438.42) Nil Nil Total (A+B) .................................................................................................... 0.01 Nil 0.01 Nil Nil Nil 0.01 Nil Nil 1.25 96.74 Nil Nil Nil 197.58 (97.99) 99.59 99.59 During the year, the Company sold investments in Tata Communications Limited and Panatone Finvest Limited (Associate Companies) which were classified as assets held for sale in the previous year. The resultant gain on sale of investments of ` 1,212.99 crore has been disclosed as an exceptional income in the statement of profit and loss. The Company’s investment in equity shares of Tata Teleservices Limited (‘TTSL’) which are measured at Fair Value Through Other Comprehensive Income were classified as held for sale during the previous year. During the year ended 31st March, 2019, the Company has sold the said investment and recognised a gain of ` 0.01 crore after reduction in fair value amounting to ` 1,438.42 crore recognised in earlier years. During the previous year ended 31st March, 2018, the Company had written put options on equity shares of TTSL. The changes in the fair value of these put options amounting to ` 107.08 crore was recognised as an exceptional expense in the statement of profit and loss. 35. Income taxes Accounting Policy Current Tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income. Current income tax relating to items recognised outside statement of profit and loss is recognised outside statement of profit and loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in other comprehensive income or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. 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 each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Standalone Financials I 299 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 35. Income taxes (Contd.) Notes to the Financial Statements 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 relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. 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. The Company reviews the “MAT credit entitlement” asset at each reporting date and writes down the asset to the extent that it is no longer probable that it will pay normal tax during the specified period. In the situations where one or more units of the Company are entitled to a tax holiday under the tax law, no deferred tax (asset or liability) is recognised in respect of temporary differences which reverse during the tax holiday period, to the extent the concerned unit’s gross total income is subject to the deduction during the tax holiday period. Deferred tax in respect of temporary differences which reverse after the tax holiday period is recognised in the year in which the temporary differences originate. However, the Company restricts recognition of deferred tax assets to the extent it is probable that sufficient future taxable income will be available against which such deferred tax assets can be realized. For recognition of deferred taxes, the temporary differences which originate first are considered to reverse first. Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. (i) Income Tax Expenses 1. Income taxes recognised in the statement of profit and loss (Continuing Operations) 31st March, 2019 ` crore 31st March, 2018 ` crore Current tax ........................................................................................................................... Deferred tax ......................................................................................................................... Deferred tax relating to earlier years .......................................................................... Deferred tax (Recoverable)/Payable ........................................................................... Total income tax expense recognised in the current year .......................... 171.00 331.58 10.00 (420.61) 91.97 224.26 (844.37) Nil 454.29 (165.82) 2. Income taxes recognised in the statement of profit and loss (Discontinued Operations) Current tax ........................................................................................................................... Deferred tax ......................................................................................................................... Total income tax expense recognised in the current year .......................... 31st March, 2019 ` crore (71.92) 5.94 (65.98) 31st March, 2018 ` crore (17.36) 3.23 (14.13) 300 I Standalone Financials 100th Annual Report 2018-19 35. Income taxes (Contd.) Notes to the Financial Statements The income tax expense for the year can be reconciled to the accounting profit as follows: Profit/(Loss) before tax (Continuing Operation)...................................................... Profit/(Loss) before tax (Discontinued Operation) ................................................. Profit/(Loss) Before Tax considered for tax working....................................... Income tax expense @ statutory tax rate .................................................................. Add/(Less) tax effect on account of : Unused tax credit (MAT) pertaining to earlier years recognised in the current year .......................................................................................................................... On provision for impairment and capital loss on sale of investments and indexation benefit available on investments ........................................................... Income during tax holiday period................................................................................ Exempt income ................................................................................................................... Lower Tax rate on Dividend Income from Foreign Subsidiaries (net of tax credits) .................................................................................................................................... Impairment of Non-current Investments .................................................................. Unrecognised unused tax credit (MAT) for the current year .............................. Reversal of deferred tax during tax holiday period ............................................... Damages towards Contractual Obligation ............................................................... Non-Deductible expenses .............................................................................................. Changes in income tax rate from 34.608% to 34.944% ........................................ Tax on other Items (including true up impact basis income tax returns) ...... Deferred Tax (Recoverable)/Payable ............................................................................ Income tax expenses recognised in statement of profit and loss ............ Tax expense for the Continuing Operations ............................................................. Tax expense for the Discontinued Operations ........................................................ Income tax expense recognised in statement of profit and loss .............. 31st March, 2019 ` crore 1,926.39 (191.82) 1,734.57 606.13 31st March, 2018 ` crore (3,244.60) (85.87) (3,330.47) (1,152.61) Nil (149.71) (19.11) (85.74) (9.19) Nil 23.27 41.08 Nil 29.87 Nil 10.00 (420.61) 25.99 91.97 (65.98) 25.99 (449.00) (338.02) (170.62) (119.55) (57.87) 1,430.20 90.61 61.12 37.06 54.70 12.68 (32.94) 454.29 (179.95) (165.82) (14.13) (179.95) Notes: 1 2 The tax rate used for the years 2018-19 and 2017-18 reconciliations above is the corporate tax rate of 34.944% and 34.608% respectively payable by corporate entities in India on taxable profits under the Indian tax law. The rate used for calculation of Deferred tax is 34.944% for 2018-19 and 2017-18, being statutory enacted rates at respective Balance Sheet date. 3. Income tax recognised directly in equity Distribution on Unsecured Perpetual Securities Current tax ............................................................................................................................. Deferred tax .......................................................................................................................... Income tax recognised directly in equity .............................................................. (60.12) Nil (60.12) (59.18) 0.24 (58.94) 31st March, 2019 ` crore 31st March, 2018 ` crore E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 301 The Tata Power Company Limited Notes to the Financial Statements 35. Income taxes (Contd.) 4. Income tax recognised in other comprehensive income Current Tax Net gain on sale of investment in equity shares at FVTOCI ................................. Remeasurement of defined benefit obligation ........................................................ Deferred tax Net fair value gain on investments in equity shares at FVTOCI .......................... Indexation benefit on investment held for sale ....................................................... 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 statement of profit and loss ............................ Items that will not be reclassified to statement of profit and loss .................... 31st March, 2019 ` crore 31st March, 2018 ` crore Nil (6.99) (6.99) 0.02 Nil 0.02 (6.97) Nil (6.97) (6.97) 34.67 Nil 34.67 (21.99) (370.00) (391.99) (357.32) Nil (357.32) (357.32) 5. Income tax recognised in other comprehensive income (Discontinued Operations) Current Tax Remeasurement of defined benefit obligation ........................................................ Bifurcation of the income tax recognised in other comprehensive income into: Items that will be reclassified to statement of profit and loss ............................ Items that will not be reclassified to statement of profit and loss .................... (ii) Deferred Tax 31st March, 2019 ` crore 31st March, 2018 ` crore (0.40) (0.40) Nil (7.37) (7.37) Nil Nil Nil (357.32) (357.32) As at 31st March, 2019 ` crore As at 31st March, 2018 ` crore Deferred Tax Assets .......................................................................................................................... Deferred Tax Liabilities ................................................................................................................... Deferred Tax Liabilities (Net) .................................................................................................... 1,024.21 1,607.70 583.49 1,310.41 1,546.40 235.99 302 I Standalone Financials 100th Annual Report 2018-19 35. Income taxes (Contd.) 2018-19 Notes to the Financial Statements Deferred tax assets in relation to Allowance for Doubtful Debts, Deposits and Advances .................................. Provision for Employee Benefits, Entry Tax and Others .................................... Minimum Alternate Tax Credit ................................................................................... On provision for impairment and capital loss on sale of investments and indexation benefit available on investments [Refer Note (a) below] .......... Deferred tax liabilities in relation to Finance Leases ................................................................................................................. Property, Plant and Equipments ............................................................................... Financial Assets at FVTOCI .......................................................................................... Others ................................................................................................................................. Deferred Tax Liabilities (Net) .................................................................................. 2017-18 Deferred tax assets in relation to Allowance for Doubtful Debts, Deposits and Advances .................................. Provision for Employee Benefits, Entry Tax and Others .................................... Minimum Alternate Tax Credit ................................................................................... On provision for impairment and capital loss on sale of investments and indexation benefit available on investments [Refer Note (a) below] .......... Deferred tax liabilities in relation to Finance Leases ................................................................................................................. Property, Plant and Equipments ............................................................................... FVTOCI ................................................................................................................................ Others ................................................................................................................................. Deferred Tax Liabilities (Net) .................................................................................. Notes: Opening Balance Recognised in Profit or loss Recognised in other comprehensive Income Recognised directly in equity 23.96 60.92 517.51 708.02 1,310.41 212.85 1,303.87 0.03 29.65 1,546.40 235.99 5.28 (9.08) Nil (282.40) (286.20) (6.00) 67.32 Nil Nil 61.32 347.52 Nil Nil Nil Nil Nil Nil Nil (0.02) Nil (0.02) (0.02) Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Opening Balance Recognised in Profit or loss Recognised in other comprehensive Income Recognised directly in equity 27.01 57.33 Nil Nil 84.34 230.64 1,271.15 22.02 29.41 1,553.22 1,468.88 (3.05) 3.59 517.51 338.02 856.07 (17.79) 32.72 Nil Nil 14.93 (841.14) Nil Nil Nil 370.00 370.00 Nil Nil (21.99) Nil (21.99) (391.99) Nil Nil Nil Nil Nil Nil Nil Nil 0.24 0.24 0.24 ` crore Closing Balance 29.24 51.84 517.51 425.62 1,024.21 206.85 1,371.19 0.01 29.65 1,607.70 583.49 ` crore Closing Balance 23.96 60.92 517.51 708.02 1,310.41 212.85 1,303.87 0.03 29.65 1,546.40 235.99 (a) During the year ended 31st March, 2019, the Company has disposed off certain investment/assets. Accordingly, the deferred tax asset of ` 708.02 crore recognised in March, 2018 has been reversed up to ` 282.40 crore in the statement of profit and loss. (b) During the year ended 31st March, 2018, the management has reassessed the recoverability of unrecognised MAT credit and accordingly recognised MAT credit amounting to ` 517.51 crore and also recognised regulatory liability on the said MAT credit which needs to be passed on to the consumers. During the current year, the management has reassessed the recoverability of unrecognised MAT credit and accordingly MAT credit amounting to ` 149.19 crore (31st March, 2018 - ` 125.92 crore) has not been recognised. (c) Considering the uncertainty over the realisability, the company has not recognised deferred tax asset to the extent of ` 306.94 crore (31st March, 2018 - ` 289.53 crore) on provision for diminution in value of investment classified as asset held for sale. (iii) Deferred Tax (Recoverable)/Payable It represents deferred tax recoverable from consumers in the future and it relates to : Non-Rate Regulated Activity (Generation & Transmission) (Refer Note below) ............................. Rate Regulated Activity (Distribution) (Refer Note 20) ............................................................................ Net .............................................................................................................................................................................. Note: For the year ended 31st March, 2019 ` crore (322.42) (98.19) (420.61) For the year ended 31st March, 2018 ` crore 161.48 292.81 454.29 In its regulated operations, the Company is entitled to a fixed return on its investment net of tax and accordingly tax is a pass-through cost. Maharashtra Electricity Regulatory Commission, vide its order dated 2nd January, 2019, has approved the extension of Power Purchase Agreement (PPA) for generation plants for a period of five years starting 1st April, 2019. Consequently, deferred tax liability expected to be recovered amounting to ₹ 272.00 crore has been recognised as recoverable from consumers resulting in corresponding credit in deferred tax recoverable for the current year. Standalone Financials I 303 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 36. 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 (a) Principal amount remaining unpaid ................................................................................ (b) Interest due thereon @ .......................................................................................................... (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 @ ...................................... The amount of further interest due and payable even in the succeeding (f ) years, until such date when the interest dues as above are actually paid @ ..... 31st March, 2019 ` crore 3.96 Nil 31st March, 2018 ` crore 3.72 Nil Nil Nil Nil 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 Micro and Small Enterprises vendors on account of retention money have not been considered for the purpose of interest calculation. 37. Commitments: 31st March, 2019 ` crore 31st March, 2018 ` crore (a) Estimated amount of Contracts remaining to be executed on capital account and not provided for (including consumer funded assets) ...................................... 511.07 248.61 (b) Other Commitments (i) (ii) The Company has given an undertaking to the Bankers of Cennergi Pty. Ltd., wherein it would ensure that Cennergi Pty. Ltd. would satisfy its commitment to the Bank. .......................................................................................... 0.06 In terms of the Sponsor Support agreement entered into between the Company, Coastal Gujarat Power Ltd. (CGPL) and INR term lenders (SBI lead consortium) 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. In terms of the conditions of the financing agreements, the Company has provided support through unsecured perpetual securities and Equity of ` 15,579.14 crore (31st March, 2018 - ` 12,153.15 crore) to CGPL. 0.05 (iv) (iii) The Company has undertaken to arrange for the necessary financial support to its subsidiaries Bhira Investments Pte. Ltd., Khopoli Investments Ltd., Bhivpuri Investments Ltd., Industrial Power Utility Ltd., Tata Power Jamshedpur Distribution Ltd. and Tata Power International Pte. Ltd. In respect of Maithon Power Ltd. (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 Ltd. (TPTCL) and Tata Power Delhi Distribution Ltd. (TPDDL) in case of their default. 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. (v) 304 I Standalone Financials 100th Annual Report 2018-19 38. Contingent liabilities Notes to the Financial Statements Contingent Liabilities including: a) Claims against the Company not probable and hence not acknowledged as debts consists of (i) Demand including interest and penalty disputed by the Company relating to Entry tax claims for the financial years 2005-06 to 2013-14. (Refer Note 44) ....................................................................................................... (a) Disallowance of carrying cost and other costs by Appellate Tribunal for Electricity (ATE). The Company has filed Special Leave Petition (SLP) with the Supreme Court. ........................................................................ (b) Disallowance of costs recoverable from consumers by Maharashtra Electricity Regulatory Commission in the tariff true up order ............. Interest and Penalty pertaining to Custom duty claims disputed by the Company relating to applicability and classification of coal. ....... Demand disputed by the Company relating to Service tax on transmission charges received for July 2012 to June 2017.. ................. (a) Way Leave fees (including interest) claims disputed by the Company relating to rates charged. .................................................................................. (b) Demand towards periodic revision in lease rent disputed by the Company. ................................................................................................................ Rates, Cess, Excise and Custom Duty claims disputed by the Company. ................................................................................................................ Octroi claims disputed by the Company, in respect of octroi exemption claimed by the Company. ........................................................... Compensation disputed by private land owners on private land acquired under the provisions of Maharashtra Industrial Development Act, 1961. .................................................................................... Other claims against the Company not acknowledged as debts. ...... Demand towards charges for unscheduled interchange (UI) of power ........................................................................................................................ (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Notes: 31st March, 2019 31st March, 2018 ` crore ` crore Nil 2,035.18 269.00 261.00 34.49 375.29 39.18 Nil 24.97 5.03 22.00 33.59 269.00 Nil 34.49 375.29 35.29 150.00 24.97 5.03 22.00 44.13 215.02 1,279.57 Nil 2,995.38 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. 3 The above Contingent Liabilities include those pertaining to Regulated Business which on unfavourable outcome can be recovered from consumers. Standalone Financials I 305 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S 38. Contingent liabilities (Contd.) Notes to the Financial Statements The Tata Power Company Limited b) Other Contingent Liabilities: Taxation matters for which liability is disputed by the Company and not provided for (computed on the basis of assessments which have been re-opened / remaining to be completed) including interest demanded ` Nil (31st March, 2018 - ` Nil). .................................................................................. c) Indirect exposures of the Company: Guarantees given : Coastal Gujarat Power Ltd. Khopoli Investments Ltd. 31st March, 2019 ` crore 31st March, 2018 ` crore 456.61 625.66 31st March, 2019 ` crore* 31st March, 2018 ` crore 7,836.54 1,683.52 3,110.14 2,771.67 (equivalent to USD 243.42 million) (equivalent to USD 425.25 million) Bhira Investments Pte. Ltd. (Formerly known Bhira Investment Ltd.) 1,502.18 2,173.02 Trust Energy Resources Pte. Ltd. Energy Eastern Pte. Ltd. Tata Power Renewable Energy Ltd. Tata Power International Pte. Ltd. Tata Power Solar Systems Ltd. Chirasthaayee Saurya Ltd. Walwhan Renewable Energy Ltd. (equivalent to USD 217.20 million) (equivalent to USD 333.40 million) 624.53 735.34 (equivalent to USD 90.30 million) (equivalent to USD 112.82 million) 408.05 384.55 (equivalent to USD 59 million) (equivalent to USD 59 million) 2,075.00 Nil 295.92 272.11 1,464.99 2,735.00 189.01 (equivalent to USD 29 million) Nil 260.00 2,172.24 * The exposure is considered to the extent of borrowings outstanding in the balance sheet of subsidiaries (includes letter of credit). d) (i) In respect of the Standby Charges dispute with Adani Electricity Mumbai Limited (Adani Electricity) erstwhile 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 Adani Electricity 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, 2019 the accumulated interest was ` 251.96 crore (31st March, 2018 - ` 240.76 crore) (` 11.20 crore for the year ended 31st March, 2019). On appeal, the 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 Adani Electricity on furnishing the required undertaking to the Court. 306 I Standalone Financials 100th Annual Report 2018-19 38. Contingent liabilities (Contd.) Notes to the Financial Statements 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 Adani Electricity. 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. (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 from 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 38(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 38(d)(i) above. e) There are numerous interpretative issues relating to the Supreme Court (SC) judgement dated 28th February, 2019 on Provident Fund (PF) on the inclusion of allowances for the purpose of PF contribution as well as its applicability of effective date. The Company is consulting Legal counsel for further clarity and evaluating its impact on its financial statement. The Company, in respect of the above mentioned Contingent Liabilities has assessed that it is only possible but not probable that outflow of economic resources will be required. 39. Other Disputes a) In the matter of claims raised by the Company on Adani Electricity, 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 Adani Electricity, 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 Adani Electricity, has directed Adani Electricity 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 Adani Electricity, ATE has directed MERC that the issue be examined afresh and after the decision of the Supreme Court in the Appeals relating to the distribution licence and rebates given by Adani Electricity. The Company and Adani Electricity had filed appeals in the Supreme Court. The Supreme Court, vide its Order dated 14th December, 2009, has granted stay against ATE Order and has directed Adani Electricity to deposit with the 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 from the above matters. b) Capital work in progress includes amount incurred for Vikhroli transmission lines project amounting to ` 57 crore, ordered as deemed closure by Maharashtra Electricity Regulatory Commission. The matter has been disputed by the Company and believes that it will be able to recover the costs incurred for the said project. Accordingly, no impairment provision is required in respect of the same. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 307 40. Earnings Per Share (EPS) Notes to the Financial Statements The Tata Power Company Limited Accounting Policy 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. Particulars For the year ended 31st March, 2019 ` crore* For the year ended 31st March, 2018 ` crore* A. B. C. D. EPS - Continuing operations (before net movement in Regulatory Deferral Balances) Net Profit / (Loss) from Continuing Operations ........................................................... Net movement in Regulatory Deferral Balances ......................................................... Income-tax attributable to Regulatory Deferral Balances ....................................... Net movement in Regulatory Deferral Balances (Net of tax) ................................. Net Profit/(Loss) (before net movement in Regulatory Deferral Balances) ....... Distribution on Perpetual Securities (on accrual basis) (Net of tax) .................... Profit/(Loss) from Continuing Operations attributable to equity shareholders (before net movement in Regulatory Deferral Balances) ... Weighted average no. of equity shares for Basic and Diluted EPS .............. EPS - Continuing Operations (before net movement in Regulatory Deferral Balances) - Basic and Diluted (In `) ................................................................................................... EPS - Continuing Operations (after net movement in Regulatory Deferral Balances) Net Profit/(Loss) for the year............................................................................................... Distribution on Perpetual Securities (on accrual basis) (Net of tax) .................... Profit/(Loss) attributable to equity shareholders (after net movement in Regulatory Deferral Balances) ....................................................................................... Weighted average no. of equity shares for Basic and Diluted EPS .............. EPS - Continuing operations (after net movement in Regulatory Deferral Balances) - Basic and Diluted (In `) ................................................................................................. EPS - Discontinued operations Net Profit/(Loss) from Discontinued Operations .................................................. Weighted average no. of equity shares for Basic and Diluted EPS .............. EPS - Discontinued Operations - Basic and Diluted (In `) ................................................................................................... EPS - Total Operations (after net movement in Regulatory Deferral Balances) Net Profit/(Loss) from total operations (after net movement in regulatory deferral balances) ................................................................................................................... Distribution on Perpetual Securities (on accrual basis) (Net of tax) .................... Net Profit/(Loss) from Total Operations attributable to equity shareholders (after net movement in Regulatory Deferral Balances) ....... Weighted average no. of equity shares for Basic and Diluted EPS .............. EPS - Total Operations (after net movement in Regulatory Deferral Balances) .................................................................................................................................. - Basic and Diluted (In `) ................................................................................................... 1,834.42 (244.77) 85.53 (159.24) 1,993.66 (111.25) (3,078.78) (236.00) 81.67 (154.33) (2,924.45) (111.82) 1,882.41 2,707,605,570 (3,036.27) 2,707,605,570 6.95 (11.21) 1,834.42 (111.25) (3,078.78) (111.82) 1,723.17 2,707,605,570 (3,190.60) 2,707,605,570 6.36 (11.79) (125.84) 2,707,605,570 (71.74) 2,707,605,570 (0.46) (0.26) 1,708.58 (111.25) (3,150.52) (111.82) 1,597.33 2,707,605,570 (3,262.34) 2,707,605,570 5.90 (12.05) * All numbers are in ` crore except weighted average number of equity shares and Basic and Diluted EPS. 308 I Standalone Financials 100th Annual Report 2018-19 41. 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) Af-Taab Investment Company Ltd. Tata Power Trading Company Ltd. NELCO Ltd. Subsidiaries 1) 3) 5) 7) Maithon Power Ltd. 9) 11) Bhira Investments Pte. Ltd. Tata Power Renewable Energy Ltd. (Formerly known as Bhira Investment Ltd.) Indo Rama Renewables Jath Ltd. ** 13) Khopoli Investments Ltd. 15) Trust Energy Resources Pte. Ltd. 17) NDPL Infra Ltd. ** 19) PT Sumber Energi Andalan Tbk ** 21) Tata Ceramics Ltd. 23) Poolavadi Windfarm Ltd. ** 25) 27) Walwhan Urja Anjar Ltd. ** 29) Walwhan Solar Raj Ltd. ** 31) Walwhan Solar Energy GJ Ltd. ** 33) MI MySolar24 Private Ltd. ** 35) Walwhan Solar MP Ltd. ** 37) Walwhan Solar KA Ltd. ** 39) Walwhan Solar RJ Ltd. ** 41) Walwhan Solar TN Ltd. ** 43) Clean Sustainable Solar Energy Pvt. Ltd. ** 45) Solarsys Renewable Energy Pvt. Ltd. ** 47) Nelco Network Products Ltd. ** 49) TP Ajmer Distribution Ltd. ** ** Through Subsidiary Companies Employment Benefit Funds 1) 3) Tata Power Superannuation Fund Tata Power Consolidated Provident Fund (ii) Tata Power Solar Systems Ltd. 2) Tata Power Green Energy Ltd. 4) Tatanet Services Ltd. ** 6) 8) Industrial Power Utility Ltd. 10) Coastal Gujarat Power Ltd. 12) Bhivpuri Investments Ltd. 14) Energy Eastern Pte. Ltd. ** 16) Tata Power Delhi Distribution Ltd. 18) Tata Power Jamshedpur Distribution Ltd. 20) Tata Power International Pte. Ltd. 22) Supa Windfarm Ltd. ** 24) Nivade Windfarm Ltd. ** 26) Walwhan Renewable Energy Ltd. ** 28) Walwhan Solar AP Ltd. ** 30) Northwest Energy Private Ltd,. ** 32) Dreisatz MySolar24 Private Ltd. ** 34) Walwhan Energy RJ Ltd. ** 36) Walwhan Solar MH Ltd. ** 38) Walwhan Solar PB Ltd. ** 40) Walwhan Wind RJ Ltd. ** 42) Walwhan Solar BH Ltd. ** 44) Walwhan Urja India Ltd. ** 46) Chirasthaayee Saurya Ltd. ** 48) Vagarai Windfarm Ltd. ** 50) Far Eastern Natural Resources LLC ** 2) Tata Power Gratuity Fund (b) Other related parties (where transactions have taken place during the year or previous year / balances outstanding) : (i) Associates 1) 3) 5) 7) Tata Projects Ltd. The Associated Building Co. Ltd. Tata Communication Ltd. (ceased to be an associate w.e.f. 28th May, 2018) Panatone Finvest Ltd. (ceased to be an Associate w.e.f. 28th May, 2018) (ii) Joint Venture Companies Cennergi Pty. Ltd. ** 1) Tubed Coal Mines Ltd. 3) Adjaristsqali Georgia LLC ** 5) Powerlinks Transmission Ltd. 7) 9) PT Baramulti Sukessarana Tbk** 11) Adjaristsqali Netherlands BV** 13) LTH Milcom Private Ltd. ** Joint Venture of Subsidiaries Yashmun Engineers Ltd. Nelito Systems Ltd. 2) 4) 6) Dagacchu Hydro Power Corporation Ltd. 2) Mandakini Coal Company Ltd. Itezhi Tezhi Power Corporation 4) PT Antang Gunung Meratus** 6) PT Kaltim Prima Coal** 8) 10) Industrial Energy Ltd. 12) Dugar Hydro Power Ltd. Standalone Financials I 309 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 41. Related Party Disclosures: (Contd.) (c) (i) (ii) Promoter holding more than 20% - Promoter Subsidiaries and Jointly Controlled Entities of Promoters - Promoter Group (where transactions have taken place during the year or previous year / balances outstanding) : 1) Ewart Investments Ltd. 3) 5) 7) 9) J R D Tata Trust Sir Dorabji Tata Trust Sir Ratan Tata Trust Tata Industries Ltd. (ceased to be Subsidiary and became a Joint Venture w.e.f. 27th March, 2019) 11) Tata Investment Corporation Ltd. 13) Tata Consultancy Services Ltd. 15) Tata Realty And Infrastructure Ltd. 17) Infiniti Retail Ltd. 19) Tata Business Support Services Ltd. (ceased to be an Associate and became a Subsidiary w.e.f. 27th November, 2017) 1) Tata Sons Pvt. Ltd. 2) Tata Communications Ltd. (ceased to be an Associate and became a Subsidiary w.e.f. 28th May, 2018) Tata AIG General Insurance Company Ltd. Progressive Electoral Trust Tata Interactive Systems 4) 6) 8) 10) Tata International Ltd. 12) Tata Ltd. 14) Tata Sky Ltd. 16) Ecofirst Services Ltd. 18) Tata Housing Development Co. Ltd. Employees Provident Fund 20) Tata Consultancy Services Employees Provident Fund 21) Tata Consulting Engineers Ltd. 23) Tata Housing Development Company Ltd. 22) TC Travel and Services Ltd. 24) Tata Technologies (India) Ltd. Employees Provident 25) Niskalp Infrastructure Services Ltd. (Formerly Niskalp 26) Tata Projects Provident Fund Trust Fund Energy Ltd.) 27) Tata Unistore Ltd. (Formerly Tata Industrial Services Ltd.) (ceased to be an Associate and became a Subsidiary w.e.f. 29th March, 2018) 29) Taj Air Ltd. 31) Tata Teleservices Ltd. (ceased to be an Associate and became a Subsidiary w.e.f. 27th November, 2017) 33) Tata Teleservices (ceased to be an Associate and became a Subsidiary w.e.f. 31st October, 2017) (Maharashtra) Ltd. 28) STT Global Data Centres Ltd. (Formerly Tata Communications Data Centers Pvt. Ltd.) (w.e.f. 28th May, 2018) India Pvt. 30) Tata AIA Life Insurance Company Ltd. 32) Tata Capital Financial Services Ltd. 34) Tata AG, Zug 35) THDC Management Services Ltd. (Formerly THDC 36) Tata Advanced System Ltd. Facility Management Ltd.) 37) Tata Advanced Material Ltd (ceased to be Subsidiary 38) Tata Communications Payment Solutions Ltd. w.e.f. 27th March, 2019) 39) Panatone Finvest Ltd. (d) Key Management Personnel (w.e.f. 28th May, 2018) 1) 3) 5) 7) Anil Sardana - CEO & Managing Director (ceased to be Director w.e.f. 30th April, 2018) Ramesh N. Subramanyam - Chief Financial Officer N. Chandrasekaran Homiar S. Vachha (ceased to be Director w.e.f. 22nd April, 2017) 2) 4) 6) 8) Ashok Sethi - COO & Executive Director Hanoz Minoo Mistry - Company Secretary S. Padmanabhan (ceased to be Director w.e.f. 16th November, 2017) Nawshir H. Mirza 9) Deepak M. Satwalekar 10) Pravin H. Kutumbe (ceased to be Director w.e.f. 20th May, 2017) 11) Sandhya S. Kudtarkar 12) Anjali Bansal (ceased to be Director w.e.f. 16th November, 2017) 13) Vibha U. Padalkar 15) Kesava Menon Chandrasekhar (w.e.f. 4th May, 2017) 17) Saurabh Agrawal (w.e.f. 17th November, 2017) 19) Praveer Sinha CEO & Managing Director (w.e.f. 1st May, 2018) 14) Sanjay V. Bhandarkar 16) Hemant Bhargava (w.e.f. 24th August, 2017) 18) Banmali Agrawala (w.e.f. 17th November, 2017) (e) Relative of Key Managerial Personnel (where transactions have taken place during the year or previous year / balances outstanding) Neville Minoo Mistry (Brother of Hanoz Minoo Mistry) 310 I Standalone Financials 100th Annual Report 2018-19 Notes to the Financial Statements 41. Related Party Disclosures: (Contd.) (f ) Details of Transactions: Particulars Subsidiaries Associates Joint Ventures Key Management Personnel and their Relatives Employee Benefit Funds / Trust Promoter Group ` crore Promoter 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 ........................................................................ Sale 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 - short term employee benefits ................. Long term employee benefits paid .................................................. Short term employee benefits paid .................................................. Interest income ........................................................................................ Interest paid .............................................................................................. Dividend income ..................................................................................... Dividend paid ........................................................................................... Guarantee commission earned .......................................................... Loan Taken ................................................................................................. Loans given ................................................................................................ Impairment of Investments ................................................................. Damages towards contractual obligations .................................... Equity contribution (includes advance towards equity contribution and perpetual bonds) .................................................. Loans provided for as doubtful advances (including interest) Loans provided for as doubtful advances reversed (including interest) ....................................................................................................... Loans taken repaid (including loan converted into equity) .... 62.80 63.38 256.84 188.77 0.06 1.32 0.09 - 107.57 105.78 6.98 0.42 - - - - 7,616.96 $ 3,548.27 $ 6,029.09 $ 2,862.97 $ - - - - - - 44.39 36.39 3.98 1.22 283.40 619.78 - - 19.77 22.27 564.10 285.00 2,358.66 1,377.12 - 4,230.32 - - 3,435.98 1,496.01 11.16 - - 0.01 689.10 168.00 - - 0.15 41.39 9.69 1.80 0.08 - 0.16 0.23 10.85 10.17 - - - - - - - - - - - - - - - - - - 9.68 15.31 - - - - - - 1.00 - - - - - - - - - - - - - 58.74 88.48 - - - - - - 18.09 19.94 0.08 - - - - - - - - $ 31.62 $ - - - - - - 0.64 0.48 - 0.19 85.40 102.18 - - 1.18 1.28 8.00 1.00 0.07 - - - - - - - 0.07 - - - - - - - - - - - - - - - - - - - - - - - - 23.91 * 25.17 * 1.15 - 0.55 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 41.14 28.57 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 0.02 0.10 69.68 37.43 3.01 20.72 - - 10.15 2.29 27.07 31.63 - - - - - - - - - - - - - - 0.01 - 26.70 14.95 - # 0.01 1.77 1.85 - - - - - - - - - 107.08 - - - - - - - - - - - - - - - - 0.98 0.96 0.08 0.52 - 21.56 - - - - - - - - - - - - - - - - 5.34 5.34 109.17 109.17 - - - - - - - - - - - - - - - - - - Standalone Financials I 311 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 41. Related Party Disclosures: (Contd.) (f ) Details of Transactions: (Contd.) Particulars Subsidiaries Associates Loans repaid (including loan converted into equity) ................. Deposits taken .......................................................................................... Deposits refunded .................................................................................. Liability written back .............................................................................. Sale of Investments [Refer Note 34(a)] ............................................ Donation given ........................................................................................ Balances outstanding Unsecured Perpetual Securities ......................................................... Redeemable Non-Convertible Debentures ................................... Investments ............................................................................................... Impairment in value of investments ................................................ Other receivables .................................................................................... Loans given (including interest thereon)........................................ Loans taken (including interest thereon) ....................................... Loans provided for as doubtful advances (including interest thereon) ...................................................................................................... Deposits taken outstanding ................................................................ Preference Shares Outstanding including interest ..................... Dividend receivable ................................................................................ Guarantees, collaterals etc. outstanding ........................................ Letter of comfort outstanding ............................................................ Other payables ......................................................................................... Notes: 2,633.96 974.94 - - - - - - - - - - - - - - 23,741.74 20,305.76 4,140.60 4,140.60 46.88 32.89 130.70 409.21 0.38 125.38 12.40 - - - - 316.20 64.45 210.06 16,162.84 14,574.96 - - 22.37 4.49 1.00 - 0.01 - - - - 0.51 - - - - - - - - 107.57 107.57 - - 1.26 1.14 1.27 1.27 - - 1.27 1.27 - - - - - - - - - - 7.58 1.75 Joint Ventures 1.00 - - - - - - - - - - - - - - 1,183.20 2,129.00 67.50 67.50 9.23 6.31 72.84 @ 71.59 - - 54.25 54.25 - - - - 16.71 35.80 - - 0.05 0.05 60.81 26.52 Key Management Personnel and their Relatives - - - - - - 2.03 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12.93 - Employee Benefit Funds / Trust Promoter Group - - - - - - - - - - - - - - - - - - - - 20.46 26.41 - - - - - - - - - - - - - - - - 13.56 - - - 0.21 1.79 1.51 1.15 - 0.01 614.18 - 20.00 - 199.00 130.00 36.50 36.50 387.19 418.20 - - 5.04 0.19 - - - - - - 0.02 3.99 - - - - - - - - 0.51 3.04 ` crore Promoter - - - - - - 0.64 - 1,542.61 - - - - - - - 241.95 241.95 - - 0.08 - - - - - - - 2.00 2.00 - - - - - - - - 19.20 21.72 The Company’s principal related parties consist of Tata Sons Private Limited, its subsidiaries and joint ventures, its own subsidiaries, affiliates and key managerial personnel. The Company’s material related party transactions and outstanding balances are with related parties with whom the Company routinely enters into transactions in the ordinary course of business. All outstanding balances are unsecured. $ * 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. # Denotes below ` 50,000. @ Includes loan reclassified as held for sale. Previous year’s figures are in italics. 312 I Standalone Financials 100th Annual Report 2018-19 42. Financial Instruments 42.1 Fair values Notes to the Financial Statements Set out below, is a comparison by class of the carrying amount and fair value of the financial instruments: Financial assets Cash and Cash Equivalents .......................................................... Other Balances with banks .......................................................... Trade Receivables ............................................................................ Unbilled Revenues .......................................................................... Loans ................................................................................................... Finance Lease Receivables ........................................................... FVTOCI Financial Investments # (Refer Note below) ......... Amortised Cost financial investments # ................................. Other Financial Assets ................................................................... Asset Classified as Held For Sale (Refer Note 19) - Strategic Engineering Division (SED) ..................................... - FVTOCI Financial Investments # (Refer Note below) ....... - Loans (including accrued interest) ......................................... Total ..................................................................................................... Financial liabilities Trade Payables .................................................................................. Floating rate borrowings (including current maturities) .. Fixed rate borrowings (including current maturities) ........ Derivative instruments not in hedging relationship .......... Other financial liabilities ............................................................... Total ..................................................................................................... Carrying value Fair Value 31st March, 2019 31st March, 2018 31st March, 2019 31st March, 2018 ` crore 75.94 19.85 1,442.20 41.56 170.55 591.85 419.65 416.40 98.95 265.62 38.65 18.59 3,599.81 1,124.89 7,752.86 9,699.66 Nil 967.19 19,544.60 42.94 15.48 1,157.81 53.75 471.82 609.03 419.48 656.49 297.78 314.50 69.70 Nil 4,108.78 1,126.68 6,721.21 9,850.22 0.82 970.77 18,669.70 75.94 19.85 1,442.20 41.56 170.55 591.85 419.65 423.27 98.95 265.62 38.65 18.59 3,606.68 1,124.89 7,752.86 9,774.02 Nil 967.19 19,618.96 42.94 15.48 1,157.81 53.75 471.82 609.03 419.48 660.05 297.78 314.50 69.70 Nil 4,112.34 1,126.68 6,721.21 9,892.59 0.82 970.77 18,712.07 # other than investments in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27. Notes: The management assessed that the fair value of cash and cash equivalents, other balances with bank, trade receivables, loans, finance lease receivables, unbilled revenues, trade payables, other financial assets and liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values. - - - Fair value of the Govt. securities are based on the price quotations near the reporting date. Fair value of the unquoted equity shares have been estimated using a Discounted Cash Flow (DCF) model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility. The probabilities of the various estimates within the range can be reasonably assessed and are used in management’s estimate of fair value for those unquoted equity investments. The fair value of the remaining FVTOCI financial assets are derived from quoted market price in active markets. The Company enters into derivative financial instruments with various counterparties, principally banks and financial institutions with investment grade credit ratings. Foreign exchange forward contracts are valued using valuation techniques, which employs the use of market observable inputs. The most frequently applied valuation techniques include forward pricing and swap models using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, yield curves of the respective currencies, currency basis spreads between the respective currencies, interest rate curves and forward rate curves of the underlying currency. All derivative contracts are fully collateralized, thereby, eliminating both counterparty and the company’s own non-performance risk. Standalone Financials I 313 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 42. Financial Instruments (Contd.) Notes to the Financial Statements - - - The fair value of Debentures is determined by using the quoted prices. The own non-performance risk as on 31st March, 2019 was assessed to be insignificant. 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. The fair value of loans from banks and other financial liabilities, as well as other non-current financial liabilities is estimated by discounting future cash flow using rates currently available for debt on similar terms, credit risk and remaining maturities. Reconciliation of Level 3 fair value measurement of unquoted equity shares classified as FVTOCI Unlisted shares irrevocably designated as FVTOCI (Refer note below) Opening balance ............................................................................................................ Total Gain or (Loss) - in other comprehensive income .................................................................... - in profit or loss ...................................................................................................... - changes on sale of equity shares ................................................................... Closing balance ............................................................................................................. Note: For the year ended 31st March, 2019 404.87 ` crore For the year ended 31st March, 2018 789.75 Nil Nil Nil 404.87 (384.88) Nil Nil 404.87 Certain unquoted investments 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. All gains and losses included in other comprehensive income related to unlisted shares held at the end of the reporting period and are reported under “Equity Instruments through Other Comprehensive Income”. The significant unobservable input used in the fair value measurement categorized within Level 3 of the fair value hierarchy together with a quantitative sensitivity analysis as at 31st March, 2019 and 31st March, 2018 are as shown below: Description of significant unobservable inputs to valuation: Valuation techniques Investments in unquoted equity shares Price of recent transaction (PORT) Significant unobservable inputs Transaction price Range (weighted average) Varies on case to case basis Sensitivity of the input to fair value (31st March, 2018: 5%) 5% increase (decrease) in the transaction price would result in increase (decrease) in fair value by ` 2.82 crore (31st March, 2018: ` 2.82 crore) 42.2 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 Level 2 Level 3 Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. This includes quoted equity instruments, government securities and quoted borrowings (fixed rate) that have quoted price. 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 unquoted floating and fixed rate borrowings. 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 and redeemable non-cumulative preference shares. 314 I Standalone Financials 100th Annual Report 2018-19 42. Financial Instruments (Contd.) Notes to the Financial Statements The following table summarizes 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, 2019 Date of valuation Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) ` crore Total Asset measured at fair value FVTPL financial investments .................................. 31st March, 2019 FVTOCI financial investments: - Quoted equity shares .............................................. 31st March, 2019 - Unquoted equity shares ......................................... 31st March, 2019 - Assets Classified as Held For Sale ........................ 31st March, 2019 Asset for which fair values are disclosed Amortised Cost financial investments: - Government securities ............................................ 31st March, 2019 - Unquoted preference shares ................................ 31st March, 2019 Total ................................................................................. Liabilities for which fair values are disclosed Fixed rate borrowings ................................................ 31st March, 2019 Floating rate borrowings .......................................... 31st March, 2019 Total ................................................................................. Nil 14.78 Nil 38.65 423.27 Nil 476.70 4,044.41 Nil 4,044.41 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 404.87 Nil Nil Nil 404.87 14.78 404.87 38.65 423.27 Nil 881.57 5,729.61 7,752.86 13,482.47 Nil Nil Nil 9,774.02 7,752.86 17,526.88 Fair value hierarchy as at 31st March, 2018 Date of valuation Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) ` crore Total Asset measured at fair value FVTPL financial investments .................................. FVTOCI financial investments: - Quoted equity shares .............................................. - Unquoted equity shares ......................................... - Assets Classified as Held For Sale ........................ Asset for which fair values are disclosed Amortised Cost financial investments: - Government securities ............................................ - Unquoted preference shares ................................ Total ................................................................................. Liabilities measured at fair value Derivative financial liabilities .................................. Liabilities for which fair values are disclosed Fixed rate borrowings ................................................ Floating rate borrowings .......................................... Total ................................................................................. 31st March, 2018 31st March, 2018 31st March, 2018 31st March, 2018 31st March, 2018 31st March, 2018 Nil 14.61 Nil 69.70 405.05 Nil 489.36 Nil Nil Nil Nil Nil Nil Nil 31st March, 2018 Nil 0.82 31st March, 2018 31st March, 2018 6,925.46 499.00 7,424.46 2,967.13 6,222.21 9,190.16 There has been no transfer between level 1 and level 2 during the period. Nil Nil Nil 404.87 Nil 14.61 404.87 69.70 Nil 255.00 659.87 405.05 255.00 1,149.23 Nil Nil Nil Nil 0.82 9,892.59 6,721.21 16,614.62 Standalone Financials I 315 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 42. Financial Instruments (Contd.) 42.3 Capital Management & Gearing Ratio For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximize the value for shareholders. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. From time to time, the Company reviews its policy related to dividend payment to shareholders, return capital to shareholders or fresh issue of shares. The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio around 50%. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents, excluding discontinued operations as detailed in the notes below. 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: Debt (i) ................................................................................................................................................. Less: Cash and Bank balances ...................................................................................................... Net debt ............................................................................................................................................. Total Capital (ii) ................................................................................................................................. Capital and net debt .................................................................................................................... Net debt to Total Capital plus net debt ratio (%) ................................................................. As at 31st March, 2019 17,641.99 77.94 17,564.05 15,689.60 33,253.65 52.82 ` crore As at 31st March, 2018 16,875.71 44.88 16,830.83 14,488.53 31,319.36 53.74 (i) Debt is defined as Non-current borrowings (including current maturities) and Current borrowings (excluding derivative, financial guarantee contracts and contingent considerations) and interest accrued on Non-current and Current borrowings. (ii) Equity is defined as Equity share capital, Unsecured perpetual securities and other equity including reserves and surplus. In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no significant breaches in the financial covenants of any interest-bearing loans and borrowing in the current year. No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2019 and 31st March, 2018. 42.4 Financial risk management objectives and policies The Company’s principal financial liabilities, other than derivatives, comprise borrowings, trade and other payables, financial guarantee contracts and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents, other bank balances, unbilled receivables, finance lease receivables and other financial assets that derive directly from its operations. The Company also holds FVTOCI/FVTPL investments and enters into derivative transactions. The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a risk committee that reviews the financial risks and the appropriate financial risk governance framework for the Company. The Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The risk management policies are approved by the board of directors, which is summarized below. 42.4.1 Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of three types of risk: currency risk, interest rate risk and equity price risk. The impact of equity price risk is not material. Financial instruments affected by market risk include loans and borrowings, derivative financial instruments and FVTOCI investments. 316 I Standalone Financials 100th Annual Report 2018-19 42. Financial Instruments (Contd.) Notes to the Financial Statements The sensitivity analysis in the following sections relate to the position as at 31st March, 2019 and 31st March, 2018. The sensitivity analysis has been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant. The analysis excludes the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets. a. Foreign currency risk management Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk through its operations in international projects and purchase of coal from Indonesia. The results of the Company’s operations can be affected as the rupee appreciates/ depreciates against these currencies. 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 AUD ......................................................................... In CAD .......................................................................... Foreign Currency Assets In USD .......................................................................... In ZAR .......................................................................... In TAKA ........................................................................ * Denotes figures below 50,000. (i) Foreign currency sensitivity analysis 31st March, 2019 Foreign Currency (In Millions) 32.13 0.07 * 124.51 0.01 0.01 31st March, 2019 Foreign Currency (In Millions) 7.66 0.01 0.20 ` crore 222.21 0.54 0.03 7.78 0.05 0.05 ` crore 52.98 0.01 0.02 31st March, 2018 Foreign Currency (In Millions) 78.73 0.24 Nil 15.37 Nil Nil 31st March, 2018 Foreign Currency (In Millions) 16.75 0.21 0.21 ` crore 513.16 1.93 Nil 0.95 Nil Nil ` crore 109.17 0.12 0.02 The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax and pre-tax equity is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency forward and option contracts given as under: As of 31st March, 2019................................... Rupee depreciate by ` 1 against USD Rupee appreciate by ` 1 against USD As of 31st March, 2018................................... Rupee depreciate by ` 1 against USD Rupee appreciate by ` 1 against USD Notes: 1) +/- Gain/Loss ` crore Effect on profit before tax and consequential impact on Equity (-) ₹ 2.45 (+) ₹ 2.45 (-) ₹ 0.59 (+) ₹ 0.59 2) The impact of depreciation/ appreciation on foreign currency other than USD on profit before tax of the Company is not material. (ii) Derivative financial instruments The Company holds derivative financial instruments such as foreign currency forward 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. Standalone Financials I 317 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited Notes to the Financial Statements 42. Financial Instruments (Contd.) The following table gives details in respect of outstanding foreign exchange forward: Outstanding Contracts Other Derivatives Forward contracts Buy/ Sell Foreign Currency (in millions) 31st March, 2019 Nominal Value in ` crore Fair Value in ` crore In USD ........................................................ Buy Nil Nil Nil Other Derivatives Forward contracts In USD ........................................................ Buy 56.60 368.90 (0.82) Foreign Currency (in millions) 31st March, 2018 Nominal Value in ` crore Fair Value in ` crore Note: Fair Value in () denote liability b. Interest rate risk management Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings. The Company’s policy is to keep between 40% and 60% of its borrowings at fixed rates of interest. To manage this, the Company enters into fixed rate borrowings, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount. (i) 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 ..................... As of 31st March, 2019 50 bps increase 50 bps decrease (-) ₹ 39.45 (+) ₹ 39.45 (+) ₹ 39.45 (-) ₹ 39.45 As of 31st March, 2018 50 bps increase (+) ₹ 24.75 (-) ₹ 24.75 50 bps decrease (-) ₹ 24.75 (+) ₹ 24.75 ` crore 42.4.2 Credit risk management Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including loans and other financial instruments. Trade receivables ............................................................................................................................. Loans .................................................................................................................................................... Finance lease receivables ............................................................................................................. Other financial assets ..................................................................................................................... Unbilled Revenue ............................................................................................................................ Financial Assets Held for Sale ...................................................................................................... Total ..................................................................................................................................................... 31st March, 2019 1,442.20 170.55 591.85 98.95 41.56 322.86 2,667.97 ` crore 31st March, 2018 1,157.81 471.82 609.03 297.78 53.75 384.20 2,974.39 318 I Standalone Financials 100th Annual Report 2018-19 42. Financial Instruments (Contd.) Notes to the Financial Statements Refer Note 9 for 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. The Company has not acquired any credit impaired asset. 42.4.3 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 Company has access to a sufficient variety of sources of funding. Having regards to the nature of the business wherein the Company is able to generate fixed cash flows over a period of time and to optimize the cost of funding, the Company, from time to time, funds its long-term investment from short-term sources. The short-term borrowings can be rollforward or, if required, can be refinanced from long term borrowings. The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments: 31st March, 2019 Non-Derivatives Up to 1 year 1 to 5 years 5+years Total ` crore Carrying Amount Borrowings # ................................................................ Trade Payables ............................................................. Other Financial Liabilities ........................................ 9,870.39 1,102.14 734.96 7,496.93 12,091.06 29,458.38 17,641.99 22.75 42.76 Nil Nil 1,124.89 1,124.89 777.72 777.72 Total Non-Derivative Liabilities ........................ 11,707.49 7,562.44 12,091.06 31,360.99 19,544.60 Derivatives Other Financial Liabilities ........................................ Total Derivative Liabilities ................................... Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 31st March, 2018 Non-Derivatives Up to 1 year 1 to 5 years 5+years Total Carrying Amount Borrowings # ................................................................ Trade Payables ............................................................. Other Financial Liabilities ........................................ 9,435.61 1,105.68 621.37 6,343.70 12,853.61 28,632.92 16,875.71 21.00 44.74 Nil Nil 1,126.68 666.11 1,126.68 666.11 Total Non-Derivative Liabilities ........................ 11,162.66 6,409.44 12,853.61 30,425.71 18,668.50 Derivatives Other Financial Liabilities ........................................ Total Derivative Liabilities ................................... 0.82 0.82 Nil Nil Nil Nil 0.82 0.82 0.82 0.82 # 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 amount included in Note 38(c) 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 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. Standalone Financials I 319 E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S The Tata Power Company Limited 43. Segment Reporting: Notes to the Financial Statements Information reported to the Chief Operating Decisions Maker (CODM) for the purpose of resource allocation and assessment of segment performance focuses 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 Project Management Contracts/Infrastructure Management Services, Property Development and lease rent of Oil Tanks. 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. (a) Segment Information: Power Others Discontinued Operations# Eliminations ` crore Total 7,524.68 7,134.94 163.38 165.65 143.59 286.74 - - 7,831.65 7,587.33 1,797.86 1,749.30 53.03 48.28 REVENUE External Revenue ................................................................. RESULT Total Segment Results ....................................................... Finance Costs ........................................................................ Exceptional Item - Power Business................................ Exceptional Item - Unallocable ...................................... Unallocable Income net of Unallocable Expense .... Profit Before Tax - Continuing Operations ........... Profit Before Tax - Discontinued Operations # ... OTHER INFORMATION Segment Assets .................................................................... 13,536.06 13,992.00 175.58 125.89 Unallocable Assets * ........................................................... Assets Classified as Held For Sale # ............................... Total Assets ..................................................................................... 320 I Standalone Financials - - - - - - - - 1,850.89 1,797.58 (1,500.35) (1,431.38) (45.00) (100.00) 1,212.99 (4,337.40) 407.86 826.60 1,926.39 (3,244.60) (191.82) (85.87) 13,711.64 14,117.89 22,358.64 20,318.99 2,064.30 2,065.19 38,134.58 36,502.07 100th Annual Report 2018-19 43. Segment Reporting: (Contd.) Notes to the Financial Statements Power 2,817.82 3,543.35 Others Discontinued Operations# - - 118.34 257.50 Segment Liabilities ............................................................. Unallocable Liabilities * ..................................................... Liabilities directly associated with Assets Classified as Held For Sale # ................................................................. 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) ........................................................ 434.36 430.52 (20.27) (6.71) 631.59 661.22 0.70 1.34 (6.34) (3.82) 1.10 1.99 87.33 233.14 - - - - Eliminations - - - - - - - - Power Others Total Continuing Operations Discontinued Operations# Eliminations ` crore Total 2,936.16 3,800.85 18,542.55 17,335.13 966.27 877.56 22,444.98 22,013.54 522.39 665.00 (26.61) (10.53) 632.70 663.21 ` crore Total RECONCILIATION OF REVENUE REVENUE Revenue from Operations ................................................ 7,769.45 7,370.94 163.38 165.65 7,932.83 7,536.59 143.59 286.74 Add/(Less): Net Movement in Regulatory Deferral balances .................................................................................. Add/(Less): Net Movement in Regulatory Deferral balances in respect of earlier years ............................... Total Segment Revenue as reported above............... (519.03) (236.00) 274.26 - 7,524.68 7,134.94 - - (519.03) (236.00) - - 163.38 165.65 274.26 - 7,688.06 7,300.59 - - - - 143.59 286.74 - - - - - - - - 8,076.42 7,823.33 (519.03) (236.00) 274.26 - 7,831.65 7,587.33 # Pertains to Strategic Engineering Division being classified as Discontinued Operations (Refer Note 19). * Includes assets held for sale other than Strategic Engineering Division (Refer Note 19). Notes: 1. Comparative figures for Statement of Profit and Loss items are for the year ended 31st March, 2018 and Balance Sheet items are as at 31st March, 2018. 2. Revenue from a DISCOM on sale of electricity with which Company has entered into a Power Purchase Agreement accounts for more than 10% of Total Revenue. Revenue from another customer (Industrial undertaking) pertaining to Finance lease accounts for more than 10% of Total Revenue. 3. Previous period/year’s figures are in italics. E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 321 The Tata Power Company Limited Notes to the Financial Statements 43. Segment Reporting: (Contd.) Reconciliation of Assets & Liabilities Segment Operating Assets .............................................................................................. (A) Unallocable Assets Investments (Non-current and Current) ........................................................................... Assets Classified as Held For Sale other than Discontinued Operations ............... Loans Given ................................................................................................................................. Interest Accrued on Loan given to Related Party .......................................................... Dividend Receivable................................................................................................................. Deposits and Balances with Bank ........................................................................................ Non-current Tax Assets ............................................................................................................ Other Unallocable Assets ....................................................................................................... Total Unallocable Assets ....................................................................................................(B) Add: Assets of Discontinued Operations ..................................................................... (C) Total Assets .......................................................................................................... (A + B + C) Segment Operating Liabilities ........................................................................................ (A) Unallocable Liabilities Borrowings (Non-current and Current) ............................................................................. Current Maturities of Non-current Borrowings .............................................................. Deferred Tax Liabilities (Net) ................................................................................................. Interest Accrued but not due on Borrowings ................................................................. Current Tax Liabilities ............................................................................................................... Financial Guarantee Obligation towards lenders of Jointly Controlled Entity .... Other Unallocable Liabilities ................................................................................................. Total Unallocable Liabilities ..............................................................................................(B) Add: Liabilities of Discontinued Operations .............................................................. (C) Total Liabilities ................................................................................................... (A + B + C) Reconciliation of Profit Segment Profit.......................................................................................................................(A) Unallocable Income/(Expense): Other Income .............................................................................................................................. Employee Benefit Expenses................................................................................................... Depreciation and Amortisation .......................................................................................... Other Expenses .......................................................................................................................... Total ...........................................................................................................................................(B) Less: Finance Cost .................................................................................................................(C) Exceptional Items: Impairment of Property, Plant & Equipment - Power Business ................................ Provision for Contingencies - Power Business ................................................................ Impairment of Non-current Investments - Unallocable .............................................. Damages Towards Contractual Obligation - Unallocable ........................................... Gain on Sale of Investment in Associates ......................................................................... Total .......................................................................................................................................... (D) Profit/(Loss) Before Tax from Continuing Operations ..................... (A + B + C + D) Profit/(Loss) Before Tax from Discontinued Operations .............................................. Profit Before Taxes .................................................................................................................. Add/(Less): Tax Expense from Continuing Operations .................................................. Add/(Less): Tax Expense from Discontinued Operations ............................................. Profit/(Loss) for the year ...................................................................................................... As at 31st March, 2019 ` crore 13,711.64 As at 31st March, 2018 ` crore 14,117.89 21,312.77 742.29 124.05 0.19 81.16 22.74 68.65 6.79 22,358.64 2,064.30 38,134.58 2,936.16 15,473.02 1,962.50 583.49 189.09 107.67 103.74 123.04 18,542.55 966.27 22,444.98 18,392.45 1,195.95 424.34 7.40 245.87 15.48 Nil 37.50 20,318.99 2,065.19 36,502.07 3,800.85 12,433.30 4,109.80 235.99 303.90 107.67 97.77 46.70 17,335.13 877.56 22,013.54 For the year ended 31st March, 2019 ` crore 1,850.89 For the year ended 31st March, 2018 ` crore 1,797.58 516.35 (13.38) (0.01) (95.10) 407.86 (1,500.35) Nil (45.00) Nil Nil 1,212.99 1,167.99 1,926.39 (191.82) 1,734.57 91.97 (65.98) 1,708.58 929.61 (14.91) (0.02) (88.08) 826.60 (1,431.38) (100.00) Nil (4,230.32) (107.08) Nil (4,437.40) (3,244.60) (85.87) (3,330.47) (165.82) (14.13) (3,150.52) (b) Geographic Information: The Company’s operations is majorly confined within India and as such there are no reportable geographical segments. 322 I Standalone Financials 100th Annual Report 2018-19 44. Entry Tax Notes to the Financial Statements The Company had received demands in respect of entry tax on imports of fuel for Trombay plant aggregating ` 2,256.91 crore (including interest of ` 653.05 crore and penalty of ` 743.74 crore) for financial years 2005-06 to 2013-14. In the past, the Company had paid ` 221.73 crore under protest and recognised the same as expense. Remaining demand amount of ` 2,035.18 crore had been contested by the Company before the Supreme Court and disclosed the same as contingent liability in the previous year. During the year, the Government of Maharashtra has notified an amnesty scheme for settlement of arrears of tax, interest and penalty. Under the Amnesty scheme, amount payable by the Company shall be ` 345.00 crore (including interest and provision for contingency of ` 78.00 crore and ` 45.00 crore respectively) and accordingly recognised the provision for the same. Further, the amount has been recognised as revenue to the extent recoverable from consumers. 45. 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. 46. Approval of Financial Statements The financial statements were approved for issue by the Board of Directors on 2nd May, 2019. As per our report of even date For S R B C & CO LLP Chartered Accountants ICAI Firm Registration No.324982E/E300003 per SUDHIR SONI Partner Membership No. 41870 Mumbai, 2nd May, 2019. PRAVEER SINHA CEO & Managing Director DIN: 01785164 RAMESH SUBRAMANYAM Chief Financial Officer Mumbai, 2nd May, 2019. For and on behalf of the Board, BANMALI AGRAWALA Director DIN: 00120029 H. M. MISTRY Company Secretary E C I T O N T R O P E R S D R A O B ’ A & D M T R O P E R G C R R B D E T A D I L O S N O C E N O L A D N A T S Standalone Financials I 323 The Tata Power Company Limited Performance Perspective (Standalone) ` crore Generation (in MU's) Operating Income ! Operating Expenses Operating Profit Other Income # EBIDTA Finance Cost Depreciation Exceptional Items PBT Tax PAT from Discontinued Operations 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 Borrowings Gross Block (incl. Capital WIP) Accumulated Depreciation Net Block Notes: 2009-10 15,946 7,098 5,220 1,879 282 2,160 423 478 - 1,259 321 - 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 - 1,112 170 - 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 7,906 13,083 5,300 7,783 2012-13 15,770 9,567 7,509 2,058 722 2,752 684 364 - 1,703 679 - 1,025 3 115% 9% 7% 0.71 0.80 237 10,803 10,069 14,137 5,648 8,489 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 11,080 15,607 6,233 9,374 2014-15 @2015-16 @#^2016-17 @^2017-18 @^2018-19 12,186 12,227 7,688 6,769 5,313 4,673 2,375 2,096 516 995 2,891 3,090 1,500 1,319 633 605 1,168 (651) 1,926 515 92 121 (126) 3 1,709 398 5.9 1.1 130% 130% 12,237 7,301 4,943 2,358 929 3,287 1,431 663 (4,437) (3,245) (166) (72) (3,151) (12.1) 130% 11,974 8,678 6,516 2,162 1,025 3,138 1,047 575 - 1,516 505 - 1,010 3 130% 12,075 8,316 5,736 2,580 962 3,485 1,146 604 - 1,734 379 - 1,355 4.6 130% 9% 6% 0.58 0.69 270 14,196 11,037 16,878 6,729 10,149 13% 8% 0.58 0.67 270 15,080 11,229 14,913 5,826 9,087 10% 5% 0.78 0.90 271 16,321 16,504 15,856 6,387 9,469 13% 7% 0.85 1.14 271 12,718 16,571 15,383 6,998 8,386 10% 3% 0.68 1.11 271 13,919 17,453 15,508 7,510 7,998 * Share split from ` 10 to ` 1 in FY12. # Other Income excludes Gain / Loss on exchange. ! Operating income includes Rate/Regulatory Income/ (Expenses). FY11, FY12, FY13, FY14 & FY15 figures are based on Revised Schedule VI workings. @ Figures are based on IND AS. # FY17 & FY 18 financial numbers has been restated. ^ Includes CTTL operations and also considered SED under discontinued operations. $ RONW is before exceptional items and based on distributable profits(excluding interest on Perpetual debt). ** ROCE is based on operating profit (before depreciation and interest) but after tax. 324 I Standalone Financials 100th Annual Report 2018-19 AA ADB ADMS AfDB AGL AGM APP APTEL ARMC AT&C BBPS BCM BESS BEST BHIM BRR BSI BSSR BU CAGR CEA CEC CEO CERC CFA CFO CGPL CGU CII CIL Ckm CKP COO CRC CSA CSI CSR CV DBSA DDG DERC DF DG DGA DHPC DISCOM Affirmative Action Asian Development Bank Advanced Distribution Management System African Development Bank Adjaristsqali Georgia LLC Annual General Meeting Association of Power Producers Appellate Tribunal for Electricity Apex Risk Management Committee Aggregate Technical and Commercial Bharat Bill Payment System Business Continuity Management Battery Energy Storage System Brihanmumbai Electric Supply & Transport Undertaking Bharat Interface for Money Business Responsibility Report British Standards Institute PT Baramulti Suksessarana Tbk Billion Units Compound Annual Growth Rate Central Electricity Authority Chief Ethics Counsellor Chief Executive Officer Central Electricity Regulatory Commission Central Financial Assistance Chief Financial Officer Coastal Gujarat Power Limited Cash Generating Unit Confederation of Indian Industry Coal India Limited Circuit Kilometer Citra Kusuma Perdana Chief Operating Officer Customer Relations Centre Control Self Assessment Community Satisfaction Index Corporate Social Responsibility Calorific Value Development Bank of South Africa Decentralised Distributed Generation Delhi Electricity Regulatory Commission Distribution Franchisee Directorate General Dissolved Gas Analysis Dagachhu Hydro Power Corporation Limited Distribution Company GLOSSARY DMO DSM DVC EA 2003 EBITDA ECB EEPL EHV EPC EPC EU EV FENR FGD FM FMO FOB FRMC FSA FY GoI GoM GRI GST GW HC HPC HT HVDC IARM ICC ICT IEL IFC IIA IJP IMF IndAS IPP IRRJL ISTS ITPC IVR JV KMP KPC Domestic Market Obligation Demand Side Management Damodar Valley Corporation Electricity Act, 2003 Earnings Before Interest, Tax, Depreciation and Amortisation External Commercial Borrowing Energy Eastern Pte Limited Extra High Voltage Engineering Procurement Construction Engineering, Procurement & Construction European Union Electric Vehicle Far East Natural Resources LLC Focus Group Discussion Force Majeure Netherlands Development Finance Company Freight on Board Functional Risk Management Committee Fuel Supply Agreement Financial Year Government of India Government in Maharashtra Global Reporting Initiative Goods and Services Tax Gigawatt High Court High Powered Committee High Tension High Voltage Direct Current Internal Audit and Risk Management Internal Complaints Committee Integrated Communicating Technology Industrial Energy Limited Internal Financial Controls Institute of Internal Auditors Internal Job Posting International Monetary Fund Indian Accounting Standards Independent Power Producer Indo Rama Renewables Jath Limited Inter-State Transmission System Itezhi Tezhi Power Corporation Interactive Voice Response Joint Venture Key Managerial Personnel PT Kaltim Prima Coal I 325 Kalinganagar Project Office Key Responsibility Area Kisan Urja Suraksha evam Utthaan Mahabhiyaan Kilo Volt Light Emitting Diode London Interbank Offered Rate Life Insurance Corporation of India Liquid Natural Gas Lost Time Injuries Frequency Rate Mergers and Acquisition Minimum Alternate Tax Ministry of Corporate Affairs Managing Director Management Discussion and Analysis Maharashtra Electricity Regulatory Commission Ministry of New & Renewable Energy Ministry of Defence Ministry of Environment, Forest and Climate Change Ministry of Power Memorandum of Understanding Maithon Power Limited Million Tonnes Mid Term Review Million Units Megawatt Multi Year Tariff Non Convertible Debenture Northern Coalfields Limited National Company Law Tribunal National Capital Territory National Green Tribunal Non Performing Assets Noida Power Corporation Limited Nomination and Remuneration Committee Operations and Maintenance Original Equipment Manufacturer Occupational Health and Safety Assessment Series Online Monitoring System Operating Expenditure Profit After Tax Profit Before Tax Power House 6 Plant Load Factor Performance Management System Power Purchase Agreement Personal Protective Equipment KPO KRA KUSUM KV LED LIBOR LIC LNG LTIFR M&A MAT MCA MD MD&A MERC MNRE MoD MoEF&CC MoP MoU MPL MT MTR MU MW MYT NCD NCL NCLT NCT NGT NPA NPCL NRC O&M OEM OHSAS OMS OPEX PAT PBT PH6 PLF PMS PPA PPE 326 I The Tata Power Company Limited Prayagraj Power Generation Company Limited Powerlinks Transmission Limited Photo Voltaic Quick Response Code Reserve Bank of India Risk Control Index Reliability Centred Maintenance Renewable Energy Renewable Energy Certificates Risk Management Committee Renewable Purchase Obligation System Average Interruption Duration Index Supreme Court Securities and Exchange Board of India Solar Energy Corporation of India Strategic Engineering Division Special Leave Petition Senior Leadership Team Share Purchase Agreement Special Purpose Vehicle Transmission and Distribution Tariff Based Competitive Bidding Tata Business Excellence Model Tata Code of Conduct Trust Energy Resources Pte. Limited Transmission Majoration Factor Tata Management Training Centre Tata Power Ajmer Distribution Limited Tata Power Company - Distribution Tata Power Community Development Trust Tata Power Company - Generation Tata Power Company - Transmission Tata Power Delhi Distribution Limited Tata Power International Pte. Limited Tata Power Renewable Energy Limited Tata Power Skill Development Institute Tata Power Solar Systems Limited Tata Power Trading Company Limited Tata Sons Private Limited Tata Teleservices Limited Ujwal Discom Assurance Yojna Ultra Mega Power Project Uttar Pradesh New and Renewable Energy Development Agency Uttar Pradesh Power Corporation Limited Walwhan Renewable Energy Limited Extensive Business Reporting Language PPGCL PTL PV QR Code RBI RCI RCM RE REC RMC RPO SAIDI SC SEBI SECI SED SLP SLT SPA SPV T&D TBCB TBEM TCOC TERPL TMF TMTC TPADL TPC-D TPCDT TPC-T TPC-T TPDDL TPIPL TPREL TPSDI TPSSL TPTCL TSL TTSL UDAY UMPP UPNEDA UPPCL WREL XBRL (cid:5) 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 [Pursunt 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 failling him 2. Name: ..............................................................................................................................................................E-mail ID: ............................................................... Address: ............................................................................................................................................................................................................................................. ............................................................................................................................................................................Signature: ..................................or failling him (cid:5) 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 100th Annual General Meeting of the Company, to be held on the 18th day of June 2019 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 below: Resolution No. Item For Against 1 2 3 4 5 6 7 Adoption of the Audited Financial Statements of the Company for the financial year ended 31st March 2019, 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 2019, together with the Report of the Auditors thereon Declaration of dividend on Equity Shares for the financial year ended 31st March 2019 Appointment of Director in place of Mr. Banmali Agrawala (DIN: 00120029), who retires by rotation and, being eligible, offers himself for re-appointment Appointment of Mr. Ashok Sinha as a Director and as an Independent Director Appointment of Branch Auditors Ratification of Cost Auditor’s Remuneration Signed this ...............................day of ..................................... 2019. Signature of shareholder ................................................................. Signature of the Proxy holder(s) .................................................... (cid:5) Note: 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.

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