#futureready
Future ready
for smart choices
I N T E G R A T E D A N N U A L R E P O R T 2 0 1 9 - 2 0
CONTENTS
Solar Power Plant in Mithapur, Gujarat
Ultra Mega Power Project (based on super critical
technology) implemented at Mundra in Gujarat
OVERVIEW
Theme Introduction
Highlights FY20
About this Report
Introducing Our
Capitals
2
3
4
5
Introducing
The Tata Power Company
Limited
CEO and MD's Message
Business at a Glance
Our National Footprint
Key Milestones
Corporate Governance
8
10
12
14
16
OUR EMPHASIS
ON VALUE
OUR VALUE‑CREATION
PARADIGM
How do we create value?
Value-creation Model
Our Strategy
Stakeholder
Engagement
Materiality
Tata Power's
Commitment to UNSDG
Risk Management
Response to COVID-19
20
22
24
26
30
32
36
Capital-wise performance
review
Manufactured Capital
Intellectual Capital
Human Capital
Social and
Relationship Capital
Natural Capital
Financial Capital
GRI Content Index
Integrated Report -
Annexures
40
52
58
70
98
114
120
128
STATUTORY REPORTS
FINANCIAL STATEMENTS
Board's Report
Management
Discussion and Analysis
Report on Corporate
Governance
Business Responsibility
Report
130
179
200
Standalone Financial
Statements
Consolidated Financial
Statements
232
Notice
Independent
Assurance Statement
Glossary
238
333
469
483
485
Developing assets to create long-term
value for our stakeholders
Our social responsibility
Addressing the needs and
aspirations of our stakeholders
Future ready for
smart choices
Energy is at the core of a nation's prosperity. It powers aspirations, propels society and fast forwards
development in its true sense. Much like energy itself, its generation and consumption also are
increasingly becoming more dynamic. Today, the world over, the conversation around energy is
being shaped by the growing movement for sustainability.
The Tata Power Company Limited (Tata Power), India’s largest integrated power company, is shaping
this drive for India’s power industry. Well established across the power value chain, we are cognisant
of the energy needs of today and tomorrow. To this effect, we are establishing infrastructure and
deploying resources that can mainstream smarter and sustainable energy, consistently powering the
lives of our consumers.
Highlights FY20
0.681 tCO2e/MWh
~10.3 LAKH
Carbon intensity achieved
Trees planted under the ‘Tree
Mittra’ initiative
3,531 CKM
Transmission
1.95 LAKH
Smart Meters installed
by TPDDL
61%
Increase in net cash flow
from operations in
FY20 from FY19
13%
Increase in operating
profit from FY19
to FY20
4,27,420 HRS
Of training provided to employees
11%
Of our workforce
comprises women
E N V I R O N M E N T
2,600
Approximate number of trees
saved through recycled paper
billing in Mumbai distribution
O P E R AT I O N A L
3,883 MW
Clean and green energy
capacity
F I N A N C I A L
5.2
Net Debt/ EBIDTA ratio
in FY20, an improvement
from 6.2 in FY19
P E O P L E
30
Senior executives undertook
the Senior Leaders’
Development Program
S O C I A L
8,700
2
Energy efficient appliances provided
more than 6,000 MWh of energy saving
in Mumbai distribution
Villages under the CSR outreach
as well as 220 urban clusters
348
27.1 LAKH
Total beneficiaries of our
CSR activities
Future ready for smart choices
3
3
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices About
this report
We, at The Tata Power Company Limited (Tata Power), are pleased to present our first Integrated Report
2019-20, prepared in accordance with the International Integrated Reporting Council (IIRC) -
Framework. Stepping forward from our Annual Report 2018-19, the report aims to communicate
our financial and non-financial information to our stakeholders, underlying the importance of our
strategy towards value creation. With our strong commitment to sustainable innovation and energy
transition, we continue to work towards implementing our vision of building a sustainable future.
Integrated Report 2019-20
Frameworks referred
Our
is guided by the principles of
the Framework. The content of the report is in accordance
with the Global Reporting
Initiative (GRI) standards: Core option.
Linkages to the National Voluntary Guidelines (NVG) have been provided
on Social, Environmental and Economic responsibilities of the business as
well as the United Nations Sustainable Development Goals (UNSDGs) and
the United Nations Global Compact (UNGC) Principles. The financial and
statutory information in this report is in accordance with the requirements
of the Companies Act, 2013, Indian Accounting Standards, the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 and the Secretarial Standards.
Our approach to Integrated Reporting
Our Integrated Report showcases our performance for FY20 in the context
of our enabling environment, value creation process and strategic intent.
The initial section of this report introduces the reader to the organisation’s
business model, which clearly highlights how business
inputs are
transformed into value for each stakeholder group. This model also provides
an understanding of how the Company’s vision and strategy are actualised
into business outcomes.
To further align our strategy to diverse stakeholder expectations and
enhance relevance of the contents of this report, we conducted a
Stakeholder Engagement and Materiality Assessment (SEMA). The main
objective of this exercise was to understand the key issues that concern
each stakeholder group. The outputs from a series of stakeholder
interactions were overlaid to arrive at a list of 'material topics' or
focus areas. These 'material topics' define the contours of this report.
Further, the identified material topics have been categorised under the
six capitals. Through these capitals, we draw emphasis on our approach
to creating sustainable value.
Report boundary and scope
This report covers the business activities of Tata Power and
It covers all our businesses of Renewables,
all
Distribution,
Conventional
its subsidiaries.
Transmission
Generation,
and
Next Gen Power Solutions, Trading as well as our Services Business for FY20
(1st April 2019 to 31st March 2020). Our detailed ownership structure has
been given on page 16 of this report. We have not made any material
restatement in this report and we follow an annual reporting cycle.
Responsibility statement
Our Board acknowledges the accountability for the integrity and
completeness of this report and its contents. We have also ensured
collective responsibility for the preparation and presentation of this
report in accordance with the International Integrated Reporting Council
(IIRC) - Framework.
Assurance
Non-financial information in this report has been independently assured
by Ernst & Young Associates LLP (EY). The statement from the assurance
provider (Independent Assurance Statement) can be found on page 483.
The financial audit has been conducted by M/s. S R B C & CO. LLP (SRBC).
Feedback
We encourage you to share your feedback and insights on this report to
enable us to strengthen our future reporting initiatives. Your suggestions
may be communicated to tatapower@tatapower.com
Forward-looking statements
Certain elements of this report contain forward-looking statements.
These may be typically identified by terminology used, such as ‘believes’,
‘expects’, ‘may’, ‘will’, ‘could’, ‘should’, ‘intends’, ‘estimates’, ‘plans’, ‘assumes’,
and ‘anticipates’, or negative variations. These forward-looking statements
are subject to particular risks and opportunities that could be beyond
the Company’s control or currently based on the Company’s beliefs and
assumptions of future events. There could be a possibility of the Company’s
performance differing from expected outcomes and performance implied
in this report. With a varied range of risks and opportunities facing the
Company, no assurance can be provided for future results to be achieved as
the actual results may differ materially for the Company and its subsidiaries.
Introducing our capitals
Our resources
and relationships
M A N U FAC T U R E D C A PI TA L
I N T E L L E C T UA L C A PI TA L
H U M A N C A PI TA L
Our Company’s assets that are available
for organisational use and its business
activities with a focus on growth in
renewable and other energy-efficient
new business opportunities.
value
intangible
and
Our
knowledge-based assets. This is seen
in terms of our strategic protocols and
procedures.
includes our
Our workforce, which
employees’ knowledge and experience,
and our
to support an
innovative work environment.
initiatives
Page 40
Page 52
Page 58
S O C I A L A N D
R E L AT I O N S H I P C A PI TA L
N AT U R A L C A PI TA L
FI N A N C I A L C A PI TA L
Our relationships with our community,
institutions and
inclusive of our key
initiatives
the collective
to ensure
well-being of our society at large.
responsible
Our
environmental
stewardship culture as well as key
initiatives to foster a balanced approach
through use of renewable and non-
renewable resources.
The funds utilised by our Company
towards core business activities and our
ability to create valued outcomes.
Page 70
Page 98
Page 114
4
5
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices Introducing
Tata Power
8 CEO and MD's message
10 Business at a glance
12 Our national footprint
14 Key milestones
16 Corporate governance
Thermal Power Plant, Mundra
CEO & MD’s message
Raising the bar in
sustainable energy
Dear Readers,
It gives me immense pleasure to introduce to you our maiden
Integrated Report 2019-20.
“Clean, cheap and abundant power is one of the basic ingredients
for the economic progress of a city, state or country.” Almost a
century before “sustainability” gained recognition as a subject, our
Founder, Mr. Jamsetji Tata, gave this visionary message to the world.
Tata Power is proudly committed to take that message as its guiding
philosophy and support our country’s energy independence and
sustainability. As a pioneer in technology adoption, our journey over
a century has been a fascinating saga of revolutionary initiatives and
responsible business practices.
In our quest to deliver sustainable energy, we have been expanding
our operational footprint nationwide and globally, setting new
benchmarks for operational efficiencies,
in global
resources and redefining paradigms. Our focus on building long-
lasting and trusted relationships with our customers, partners,
employees and other stakeholders, and the legacy of caring for our
communities, remains the bedrock of our long-term sustenance. We
aim to energise consumer lifestyles by providing sustainable power.
investing
As we strive to lead the reform process for sustainable power, we
are also committed to safeguarding the environment for future
generations and developing our business in a way that adds value to
the local communities. We plan to set higher benchmarks in terms of
development standards, and in the implementation of cutting-edge,
eco-friendly technologies and processes of energy management.
Our commitment to sustainable supply of electric power has
enabled us to be among the leaders in each sector of our value
chain, including solar rooftop and value-added services. We have
continued our migration towards renewable energy projects and,
today, 30% of our total generation (domestic and international)
comes from clean and green sources. We are poised to grow multi-
fold on the back of latest business integrated solutions, focusing
on mobility and lifestyle and powering emerging technologies for
smart customers.
This year, we have taken significant strides towards achieving our
key goals and targets. We have been awarded the Letter of Intent
by Odisha Electricity Regulatory Commission and selected as the
successful bidder to own the licence for the distribution and retail
supply of electricity in Odisha’s five circles that constitute the Central
Electricity Supply Utility of Odisha.
National Thermal Power Corporation Limited (NTPC) has awarded us
a 250 MW solar project under the Central Public Sector Undertaking
(CPSU) scheme of ₹ 1,505 crore. It is our biggest single order from
a third party so far and consolidates our commitment to the “Make
in India” mission. It has also taken Tata Power Solar’s order book to
around 1,500 MW with value of approximately C 7,500 crore. This
underscores our competitive and quality offering as a leading Solar
EPC player in the country, achieving leadership position among
utility scale, rooftop solar and solar pump business.
Renascent Power Ventures Private Limited (Renascent), a 100%
subsidiary of Resurgent Power Ventures Pte. Limited (Resurgent),
completed the acquisition of 75.01% Equity ownership in Prayagraj
Power Generation Company Limited (PPGCL). This has augmented
our generation capacity by 1,980 MW. However, this is likely to be
amongst the last investments in coal-based power plants as we
turn our sights completely towards cleaner energy.
It is noteworthy that reviving the existing thermal power plants and
augmenting their efficiency marginally reduces the carbon footprint
of existing capacities.
With our extensive expertise and deep knowledge of the sector, Tata
Power aims to transform the Indian power sector, particularly in our
Distribution service. A variety of our service offerings has culminated
into 26.2 lakh satisfied customers.
We have set up a new subsidiary – TP Renewable Microgrid Limited
(TPRML), in partnership with the Rockefeller Foundation, to become
the world’s largest microgrid developer and operator. The aim is to
provide access to affordable, clean and reliable power supply and
also enable rural entrepreneurs to generate economic wealth and
help eradicate energy poverty. TPRML has test charged 18 microgrids
so far, while 25 more microgrids are in an advanced stage of project
execution. Further, a pipeline of 30 projects has been created in Uttar
Pradesh and Bihar.
Our cash flow from operations, on a consolidated basis, has increased
by 61% this financial year from FY19 due to prudent working capital
management. There has been an increase in operating profit by
13% due to optimisation of operating costs across Tata Power and
its subsidiaries. This has resulted in higher realisation of cash in hand
as on 31st March 2020.
We are proud to be associated with Jaguar Land Rover India
Limited (JLR India) for end-to-end charging solutions for its range
of electrified vehicles to be launched in India. As India’s leading
integrated player in the EV charging space, we will provide JLR
India’s EV customers with easy, universal and seamless charging
experience at their homes, offices and public places. This
partnership is also an endorsement of their faith in us and our ability
to deal with the electrified range of vehicles that JLR will bring
in India.
Club Enerji, our nationwide resource and energy conservation
initiative with a strategic focus on nation-building, sensitised over
26.4 million people while saving more than 31.8 million units of
energy across seven cities – New Delhi, Mumbai, Pune, Ahmedabad,
Bengaluru, Kolkata and Ajmer since 2007.
The initiative also reached out to its digital audiences through its
website, social media handles and an online module themed “Save
water”. During the current financial year, the Company initiated
four fresh campaigns, including 'I have the Power', 'I Live Simply',
'#SwitchOff2SwitchOn' and 'I Can' to further the success of Club Enerji
among the youth of India. These campaigns were also promoted on
popular social media platforms like Facebook, Instagram etc., and
managed to reach a large number of young audiences. The Club
now has created 3.6 lakh Energy Champions along with 4.1 lakh
Energy Ambassadors across the country since its inception, reaching
533 schools in the process.
We believe that inculcating the value of sustainability and a broad
understanding of our dependencies on scarce resources must
start early in our children’s lives. Tata Power has been conferred the
prestigious “Edison Award” for its “Club Enerji #Switchoff2SwitchOn”
campaign under Social Innovation category and Social Energy
Solutions subcategory. Apart from India, Tata Power Club Enerji also
has followers overseas in countries such as France, Germany, the
United States, Ireland, Philippines, Bangladesh, United Arab Emirates,
South Africa and Nepal. The Club is a case study in IIM-Ahmedabad
and was showcased on the prestigious TEDx platform.
Our efforts have been recognised by the industry, with the Business
Insider ranking us at the top of India’s ‘Most Respected Companies’.
As part of our plans to maintain leadership in renewable energy, our
rooftop solar solutions are now available in 26 states and 7 Union
territories, with our solar arm — Tata Power Solar Systems Limited
— having an installed capacity of 421 MW under EPC contracts for
customers as well as operating assets under PPA. Rooftop solar is
an ideal solution for consumers who are looking for a sustainable
source of clean energy that has the in-built capacity to pay for itself
in the long run.
Furthermore, with the cost of diesel and electricity rising, solar
powered water pumps can emerge as the perfect alternative for
farmers as these have a low maintenance cost and a long product
life. When combined with new distribution solutions like microgrid,
solar rooftop and solar water pumps will play a big role in improving
the energy access across the country, in both urban and rural areas.
All these initiatives are poised to take our share of ‘clean and green’
energy from 30% in 2020 to around 50%-60% in 2025.
One of the biggest trials facing humanity today is that of fighting
climate change. Mitigating the impacts of global warming requires
reconciliation of economic growth with the decrease in GHG
emissions. This will only be possible through the transition to a
decarbonised energy model. To contribute our share in overcoming
this challenge, we are continuously exploring green technology
and its applicability for our customers. We are confident of being
#FutureReady and continue lighting up lives of our consumers!
Yours sincerely,
Praveer Sinha
CEO & MD, Tata Power
8
9
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices Business at a glance
A leading market disruptor
in sustainable energy
As India’s largest Integrated Power
Company, Tata Power continues
to honour its 106-year old legacy
by being committed to ‘Lighting
Up Lives’ for generations to come.
Bringing in competency, capturing
new opportunities and driving
innovation-led change, we have
strengthened our position in the
new phase of the power industry’s
dynamic growth.
Our diverse portfolio is suitably geared to
enable India’s green and smart transition.
As an industry leader, we actively participate
and regularly
interact with government
bodies, institutions, NGOs, industry players
across several member platforms to stay
in sync with the ever-changing business
landscape, and we actively participate in
policy advocacy.
Note:
Details of our memberships are listed in Annexure 1.
We currently have 54 subsidiaries (including 7 foreign
based), 30 Joint Ventures (JV) and 5 associates, details of
which are provided in Annexure 2.
10
Our Business
Our Inspiration
Our Mission
Value Generation
Renewable
Energy
Generation
Vision
Our vision is to empower a billion lives
through sustainable, affordable and
innovative energy solutions.
Transmission
Values – SCALE
We aim to achieve our
Vision through:
Keeping the customer at the
centre of all we do.
EV Charging
Infrastructure
Manufacturing
Conventional
Energy
Generation
Distribution
Solar Water
Pump
Solar
Rooftop
Solar EPC
Projects
Safety
Safety is a core value over
which no business objective
can have a higher priority.
for
stakeholders
Care
Care
–
our environment, customers
and
shareholders – both
existing and potential, our
community and our people
(our employees and partners).
Agility
Speed,
being
through
collaboration
empowering employees.
responsiveness
proactive,
and
achieved
and
future
Learning
skill
Building
learning and
sets
training. Maximise usage of
e-learning platform.
through
ready
Ethics
Achieve
the most admired
standards of ethics, through
integrity and mutual trust.
Operating
executing
benchmark
technology and innovation.
assets
projects
level
and
at
through
Sustainable growth with a
focus on profitability and
market leadership.
an
empowered
Creating
workforce driven by passion
and purpose.
‘Leadership with Care’ for
all stakeholders.
Power Supply
Along with supplying uninterrupted
power, Tata Power provides beyond-
ensure
services
the-meter
customer satisfaction.
to
Solar Rooftop
Tata Power is maximising the utility of
idle rooftop space by providing EPC
solutions to residential, commercial/
industrial
institutional
and
consumers across India.
Solar Microgrids
Tata Power has set its sights on
overcoming the pervasive challenge
of scaling up an innovative microgrid
model to provide clean, reliable and
economic power to millions of rural
households and enterprises.
EV Charging
Tata Power is establishing energy-
efficient
infrastructure
to ensure India is EV-ready for the
transition to green mobility.
charging
Home Automation
Tata Power is reducing the carbon
footprint of individual consumers by
increasing the energy-efficiency of
household appliances and enabling
remote monitoring and operation,
thereby enhancing user experience
and satisfaction.
Solar Pumps
A range of solar pumps are
also available to empower the
in alignment with
community
renewed
the
focus
Governmentof India.
of
11
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices Our national footprint
An extensive
power network
Tata Power, together with its subsidiaries and joint entities, is present across
the entire power value chain of conventional and renewable energy and next-
generation customer solution. We have a domestic footprint with a generation
capacity of 12,264 MW. The changes in the Company’s holding structure since
the previous year has been documented in the Board’s Report on page 132.
No changes have occurred in the share capital structure and other capital formations/
maintenance/ alteration operations since the past year. Similarly, the structure of
and relationships within supply chain has remain unchanged.
12,264 MW
Total Generation
8,805 MW
Thermal
447 MW
Hydro
375 MW
Waste Heat/BFG
932 MW
Wind
1,705 MW
Solar
Domestic footprint and Generation Capacity (MW)
Domestic footprint and Generation Capacity (MW)
1. Gujarat | 4,444 MW
4,150
194
100
2. Uttar Pradesh | 1,981 MW
1,980
1
3. Maharashtra | 1,749 MW
447
239
930
133
4. Jharkhand | 1,723 MW
1,597
120
5
5. Karnataka | 619 MW
569
50
14
16
6
Ajmer
17
Delhi
12
Powerlines
2
1
10
Mumbai
3
15
5
8
7
13
4
9
11
Thermal
Hydro
Waste Heat/BFG
Wind
Solar
Distribution
Transmission
6. Rajasthan | 400 MW
7. Tamil Nadu | 371 MW
8. Andhra Pradesh | 305 MW
9. Odisha | 175 MW
215
185
251
120
205
100
135
40
10. Madhya Pradesh | 174 MW
11. West Bengal | 120 MW
12. Delhi | 110 MW
13. Bihar | 41 MW
130
44
120
108
2
41
14. Punjab | 36 MW
15. Telangana | 15 MW
16. Haryana | 1 MW
17. Uttarakhand | 1 MW
36
15
1
1
12
The Tata Power Company Limited Integrated Annual Report 2019-20
13
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices Key milestones
A decade of growth
and excellence
2009
2010
2011
2012
2013
2014
2015
Commissioned
120 MW Unit at
Tata Steel Works,
Jamshedpur
Commissioned
120 MW Unit at
Jojobera
Commissioned
3 MW Solar Power
Plant in Mulshi,
Maharashtra
Commissioned
25 MW Solar
Power Plant in
Mithapur, Gujarat
1,050 MW Maithon
Power Project
commissioned
First 4,150 MW
Ultra Mega Power
Project (based
on super critical
technology)
implemented at
Mundra in Gujarat
Renewable energy
received impetus with
the commissioning of
28.8 MW Solar Power
Project and 32 MW
Wind Farm Project in
Maharashtra
Acquisition of
39.2 MW Wind
Farm in Dwarka,
Gujarat
A landmark
year. Tata
Power entered
100th year of
its operation on
9th February
First cross-border
Hydro Power
Project successfully
commissioned at
Dagachhu, Bhutan
(2 units of 63 MW
each). This project
was registered
under UNFCCC’s
Clean Development
Mechanism (CDM)
2018
2017
2016
Customer
Support chatbot
launched in
Mumbai
Non-fossil fuel
operating capacity
reached 3,060 MW
Sale of Telecom
and Defence
assets in line
with the strategy
to divest non-
core assets to
deleverage
Balance Sheet
Constructed
187 MW Hydro
Project in Georgia
Won pilot
project from
Ministry of Home
Affairs to supply
Comprehensive
Integrated Border
Management System
(CIBMS) to Border
Security Force (BSF)
World's largest
solar rooftop
installed on
cricket stadium
at Cricket Club
India, Mumbai
Became India's
first power utility
company to launch
loyalty programme
‘Power Rewards’ in
Mumbai
Commissioned the
100 MW Anantapur Solar
Park, Andhra Pradesh,
and developed 250 MW
of solar projects in Tumkur
district, Karnataka
Became first power utility
company to automate bill
payments using e-NACH, and
partnered with IDFC Bank to
provide digitised solutions in
Mumbai
Acquired 1,010 MW
renewable assets of
Welspun
Commissioned
44 MW Lahori Wind
Farm Project in
Madhya Pradesh
9,100 MW generation
capacity crossed in
Kalinganagar Project,
Odisha
India's first
pad-mounted
Substation
designed and
developed with
Toshiba and
Cargill
120 MW Itezhi Tezhi
Hydro Power Project
(Joint Venture) in Zambia
was commissioned (CDM
approved by UNFCCC)
Inaugurated India's
first all-women
Customer Relations
Centre at Mumbai
2019
Collaboration with
AES and Mitsubishi
Corporation to
power up South
Asia's largest grid-
scale energy storage
system in India
BEST extends 677
MW PPA for next five
years
Sale of assets
in South Africa-
Cennergi
Tata Power won multiple
awards at the ACEF Asian
Leaders Forum and
Awards ceremony held
on 28th September, 2019
14
15
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices Corporate governance
Leadership with
a difference
Tata Power’s governance philosophy reflects the Tata Code of Conduct, the Tata Business Excellence
Model, and other principles, standards and policies for practising “Leadership with Trust”.
Board of Directors
We are committed to upholding integrity, social obligations
and regulatory compliances in letter and in spirit. These values
and principles are enshrined at all levels of the organisation
and ensure our alignment on the path towards sustainable and
profitable growth.
Ethical and inclusive Corporate Governance (CG) is a way of
life at Tata Power. Our CG mechanism has been established to
ensure sound management, transparency and trust to maximise
long-term value for all stakeholders by maintaining the right
balance between economic, environmental, individual and
community goals.
Our Board of Directors is the highest authority in matters
of governance and management of the Company. The Board
members are some of the finest experts in their respective
fields and have been hand-picked to ensure a balance
of industry knowledge, expertise and diversity.
1. Mr. Natarajan Chandrasekaran
2. Ms. Anjali Bansal
3. Ms. Vibha Padalkar
4. Mr. Sanjay V. Bhandarkar
5. Mr. Kesava Menon Chandrasekhar
6. Mr. Hemant Bhargava
7. Mr. Saurabh Agrawal
8. Mr. Banmali Agrawala
9. Mr. Ashok Sinha
10. Mr. Praveer Sinha
O W N E R S H I P S T R U C T U R E
37.22%
45.51%
17.27%
1
3
5
7
9
2
4
6
8
10
Chairperson Non-Executive Non-Independent Nominee
Independent CEO & Managing Director Executive
Promoter and promoter group
Public (Holding)
Public (Institutional Investors)
Public (Others)
16
The Board has devised the organisation's strategy around being
a responsible member of the society. Additionally, Tata Power
also has a sustainability model in place to establish a holistic
governance structure and effectively address our stakeholders’
requirements. The initiatives are carried out with respect to
our prioritised material issues and our long-standing support
towards national thrust areas for development. Based on a
holistic approach, several sustainability-related policies have
been framed to govern the way business is conducted.
Corporate Environment
Health and Safety Policy
Corporate Social
Responsibility (CSR)
Corporate Sustainability
E-waste Management Policy
Human Rights Policy
Whistle Blower Policy
Responsible Supply Chain
Management Policy
Leadership and
Oversight on Sustainability
Advocacy
Institutional Structures
and Systems
Leadership
with Care
Initiatives that are based
on, and are encompassing
Care for our
environment
(society at large)
Care for
our shareholders
and customers
• Environment Conservation
• Efficient use of Energy
• Investment in Green tech.
What needs to be
done (material to
both stakeholders
and us)
What we are good
at doing/ is linked
to our business
Care for
our community
Care for
our people
What we should
take up as national
thrust areas for
development
What we should
define as our
standards; from
compliance, to
competing, to
leading
Corporate Customer Service Policy
New
Technology
Benchmarking.
Going beyond compliance
Architecture
of Care
E X TE RNAL LINK | More information on our policies
Enablers Objective and its Elements Encompassing values
Compliance in Letter and Spirit
Compliance is considered a matter of high priority at Tata
Power. We are committed to creating a positive ecosystem in the
industry and the respect and trust which the Company enjoys
with its stakeholders is a testament to this commitment. There
are no cases pending with regards to unfair trade practices,
irresponsible advertising and/ or anti-competitive behaviour as
on 31st March 2020. Similarly, we have no legal cases relating
to corruption, attributable to either employees or our business
partners, cited this year. Stakeholder complaints received
during FY20 were:
Stakeholder
Employees*
Vendor
Investor
Customer
Received
in FY20
Satisfactorily resolved
by the management (%)
41**
7
20
1
100
100
95
100
*Including 6 contract employees
**Inquiry is under progress for two concerns
We firmly support human rights and the rights of all our
stakeholders. We are proud to declare that we have not received
any complaints regarding violation of rights of indigenous people,
child labour, forced labour, freedom of association, right of
collective bargaining and discrimination based on gender or social
vulnerability. Equally, we have been fully compliant with products
and service regulations concerning health and safety impacts,
marketing communication, information and labelling. There were
no pending or unresolved show-cause notices issued during FY20
from the Central Pollution Control Board or State Pollution Control
Board. Our robust compliance approach has led us to be free from
any significant regulatory fines or sanctions for non-compliance
with local and national laws.
We advocate competitiveness, effectiveness and positively
contribute to the development of the Power sector in India. We
achieve this by focussing on energy security, governance and
administration, enhancing competition and transparency in the
power sector, structural changes for facilitating capacity addition,
overcoming coal-related challenges, electricity distribution
reforms and promotion of renewable energy.
You can read further about our corporate governance structure,
committees and mechanisms.
Report on Corporate Governance, Page 200
17
62.78%OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsThe Tata Power Company Limited Integrated Annual Report 2019‑20Future ready for smart choices Our emphasis
on value
20 Value-creation model
22 Our strategy
24 Stakeholder engagement
26 Materiality
30 Tata Power's commitment to UNSDG
32 Risk management
36 Response to COVID-19
Executing stakeholder-centric,
value-led operations
Value-creation model
Creating value
with excellence
Our business model is built on a customer-centric approach, along with sustainable
value creation delivered to each and every one of our stakeholders.
O U R I N P U T S
O U R B U S I N E S S M O D E L
O U R O U T C O M E S
O U R VA L U E ‑ C R E AT I O N M O D E L
D E V E L O P I N G I N T E G R AT E D S O L U T I O N S B E YO N D B E N C H M A R K E D E XC E L L E N C E
Financial Capital
Our financial capital is available through equity investment by shareholders,
reallocation of resources, debt from lenders and retained earnings.
• Net Worth (Consolidated) – ₹ 21,898 crore
• Net Debt (Consolidated) – ₹ 43,559 crore
V I S I O N
Our vision is to empower a billion
lives through sustainable, affordable
and innovative energy solutions.
Manufactured Capital
Our plants and equipment pave the way for sustainable operations of our core
business activities. This can be seen through better operational efficiency,
up-scaling of renewable assets, our ventures in new and service-led energy-
efficient business initiatives such as smartgrids, microgrids, rooftop solar, solar
pump, home automation etc, investments in DSM programmes, leading to
energy saving as well as achieving operational efficiency.
Intellectual Capital
Our proprietary technologies, software, licences, procedures and protocols to
support a competitive advantage for Tata Power.
• Collaborative efforts - TPDDL
• Central Control Room for Renewable Assets (CCRA)
• Dedicated R&D expenditure towards innovative technologies that ensures
cost efficiency and reduces financial loss
Human Capital
Our strong workforce is vital to the successful operation of our businesses.
Employee retention and leadership training also form an important part of
our initiatives.
• 8,613 employees for The Tata Power Company Limited
• Tata Power dedicated 9,950 manhours to external training programmes
collectively
Social & Relationship Capital
To create a holistic and sustainable environment for our operations, we
inculcate the needs and concerns of our stakeholders into our businesses and
ensure that we deliver long-term value.
• ₹ 39.97 crore spent on CSR initiatives
• Alignment of CSR activities and action on UNSDG (1, 2, 3, 4, 6, 8)
Natural Capital
Responsible sourcing, benchmark operational and maintenance practices as
well as a balanced use of natural resources.
• 223,769,562 m3 of water consumed for thermal operations
• 19,747,659 MT of coal consumed for thermal operations
Suppliers
Lenders
Investors
Regulators
Employee Unions
S
H I C
T
E
Customers
Community
NGOs
Media
Employees
S
A
F
E
T
Y
L
E
A
R
N
I
N
G
VA L U E S
( S C A L E )
E
R
A
C
A G I L I T Y
S T R AT E G I C B U S I N E S S O B J E C T I V E S
SBO 1
Resolution of CGPL coal cost
under-recovery
SBO 2
Deleveraging Balance Sheet
SBO 3
Scale-up Renewables, Distribution,
Services and Energy Solutions
businesses
SBO 4
Focus on Sustainability with an intent
to attain carbon neutrality
Generation
Transmission
& Distribution
C U S T O M E R S
Fuel &
Logistics
New & Service-
led Business
SBO 5
Building a customer-centric organisation
SBO 6
Leveraging digital to establish new
business model and enhance existing
business delivery
SBO 7
Create and engaged, agile and future
ready workforce
SBO 8
Set new benchmarks in operational
excellence and financial returns for
existing businesses
Financial Capital
• Consolidated Operating Revenue – ₹ 28,948 crore
• Consolidated Operating Profit – ₹ 7,870 crore
• Consolidated Net Profit – ₹ 1,316 crore
• Free Cash Flow on Consolidated basis – ₹ 2,271 crore
Manufactured Capital
• 12,742 MW of domestic and international capacity with 30% from
'Clean and Green' sources
• TPSSL’s order book for solar EPC projects stands at 1,580 MW amounting
to ₹ 7,000 crore
• Rooftop solar projects rolled out in 94 cities across India
• Availability of affordable and reliable electricity to remote areas across India through
microgrids. 18 microgrids test charged and around 55 projects are in pipeline
• 170 EV charging points installed in 20 cities as part of EV charging infrastructure
partnerships
• Acquisition of Central Electricity Supply Utility (CESU) of Odisha (51% equity stake)
through Public Private Partnership (PPP)
• DSM initiative - ‘Be Green’ led to cumulative savings of over 6,000 MWh in
Mumbai Distribution
Intellectual Capital
• TP Renewable Microgrid Limited is aspiring to end energy poverty through off-grid
solution for last mile electrification
• Installation of Battery Energy Storage System (BESS)
• 1.95 lakh SMART meters installed by TPDDL
Human Capital
• 100% of our contractual employees are trained on various aspects of
occupational safety
• 22.2% (Workmen Cadre employees) of our employees are covered by collective
bargaining agreements
• 96.6% retention was achieved for employees at higher cadres
Social & Relationship Capital
• Presence of 2.6 million distribution consumers
• 100% of our new suppliers were screened using our social criterion (PO value greater
than ₹ 5 crore)
• 120% CSR spent achieved over obligation on a consolidated basis
• 118% beneficiary covered over target on a consolidated level
• Average CSAT score (of Mumbai Distribution, Mumbai Transmission, TPDDL and
TPREL) in FY20 was 92.5% up from 87.5% in FY19
Natural Capital
• 100% fly ash utilisation at all thermal power plants as per regulatory requirements
• 10.3 lakh trees planted
• Achieved overall carbon intensity of 0.681 tCO2e/MWh
20
21
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20
Our strategy
Our blueprint
for the future
With the help of its value-creation model, Tata Power continues to take positive strides
towards consolidating its position as India’s largest integrated power company. FY20
witnessed steady progress across business lines enabled by a sound strategic plan. The
business strategy is framed bearing in mind the Company’s core focus areas.
Fuel growth in renewables business,
including solar rooftop solutions
Expand distribution presence and
network, including microgrids
Invest in Next-Gen
power solutions
We adopt an
integrated approach
to cater to the evolving needs of our
review and
strategy
customers. A
planning is conducted annually, which
enables effective assessment, evaluation
and appraisal of our strategy and
future roadmap.
We also undertake a detailed study to
identify the
interdependence of our
business activities with external factors
such as geo-political conflicts, market
instability, innovation and legislative or
regulatory requirements, among others.
These external factors are also considered
during risk identification and strategy
development. We have a programmatic
approach
effective
rollout of our strategy encompassing
four key phases.
enables
that
F E E D B A C K L O O P
Gather and Analyse
Encompassing internal
and external analysis
Set Direction
By discerning strategic
challenges and advantages
Deploy
At an enterprise level with actionables
trickling down to individual KRAs
Plan
By chalking out clear objectives
and strategic enablers
Strategic Business Objectives
In accordance with our leadership’s intent to present a consolidated and holistic view of the Company’s
overall business performance and outlook, we have identified eight Strategic Business Objectives (SBOs).
Resolution of CGPL coal
cost under-recovery
Targets
� Optimise coal blending to
minimise impact of rise in coal
benchmark price
� Advocacy for quick
implementation of High Power
Committee recommendations
� Optimisation of coal
transportation and handling cost
SBO 1
SB O 8
S
B
O
2
7
O
B
S
Strategic Business
Objectives
S
B
O
3
Set new benchmarks in
operational excellence and
financial returns for existing
businesses
Targets
� Operate thermal and hydro
plants at optimum efficiency
� Operate RE portfolio
above design parameters
to increase yield
� AT&C loss reduction for
TPDDL, TPADL and CESU
� Maximise incentives in
regulated business
Create an engaged,
agile and future ready
workforce
Targets
� Culture and engagement
� Workforce planning
� Leadership and
succession planning
� Capability building
Deleveraging
Balance Sheet
Targets
� Reduce debt through
divestment of non-core assets
and strengthen balance sheet
� Adopt debt-light models
through innovative financial
engineering and re-structuring
Scale-up Renewables,
Distribution, Services
and Energy Solutions
businesses
Targets
� Increase share of clean
energy/ renewables to
50-60% of the generation
portfolio by 2025
� 1 crore+ customer base
across business by 2025
� More than 1
lakh EV Chargers
across India by 2025
Leverage digital to
establish new business
model and enhance
existing business delivery
Targets
� Improve asset performance
� Enhance customer experience
through use of data analytics
� Productise current IT
assets and services
� Explore new business
opportunities leveraging
digital technology
S
B
O
6
SB O 4
SBO 5
Building a customer-centric
organisation
Targets
� Roll out of value-added
services for customer delight
� Improve customer satisfaction
� Building organisational
capabilities to drive
customer-centricity
Focus on Sustainability with
an intent to attain carbon
neutrality
Targets
� Attain carbon
neutrality by 2050
� Reduce specific fuel
consumption by improving
operational efficiency
� Benchmark in
waste management
(Gainful fly ash utilisation)
22
23
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20
Stakeholder engagement
Trust with transparent
communications
In our endeavour to build a sustainable future, we, at Tata Power, aim to develop
strategic partnerships with our stakeholders and increasingly engage them in the
Company’s activities and operations. Stakeholder inclusivity and prioritisation
ensure the correct understanding and adequate response to stakeholder needs,
interests and expectations. Our engagement approach has been curated to address
the critical nature of our business scope and outcome.
Tata Power’s Stakeholder
Engagement Strategy
initiatives
Our stakeholder engagement strategy ensures
a precise
level of advocacy and transparent
communication with our stakeholder groups on
the challenges that Tata Power faces as well as the
introduced
various opportunities and
to address stakeholder concerns. Accordingly, we
formed strategic stakeholder groups based on
specific criteria in accordance with the nature of each
group. Our stakeholder engagement process has
incorporated requisite channels of communication
to build on our robust relationships as well as
increase our understanding of stakeholder concerns
and challenges. Our interaction with stakeholders
also enabled us to develop a better perspective on
relevant material matters for Tata Power. This, in turn,
helps to improve the overall strategy and orientation
of our businesses.
Stakeholder
Groups
Why are they
important
Engagement
Mechanisms
Stakeholder
Recommendations
Investors
Provision of financial capital that
enables the sustainable growth of
Tata Power
� Scheduled investor meets
� Quarterly results call
� High Leverage
� CGPL Tariff resolution
� Growth and profitability of renewables
� Shift focus from R&D to outsourcing technology
� Better communication about progress on
Company targets
Stakeholder
Groups
Why are they
important
Engagement
Mechanisms
Stakeholder
Recommendations
Lenders
Provision of debt capital to the
expansion of Tata Power’s business
activities
� Periodic meetings
� Financial status of Distribution Companies
Regulatory
Authorities
Access to operating licences
and the imposition of regulatory
measures
� Scheduled meetings
� Regular liaising
� Industry Forums
(Discoms)
� Increased disclosure on Environment, Social and
Governance (ESG) aspects
� Colour coding underground cables of Municipal
Corporation of Greater Mumbai (MCGM)- to
ensure identification and avoid damage during
civil work
� Consideration of micro tunnelling
� Climate change awareness and alignment to
Nationally Determined Contributions (NDC)
� Reduce dependence on imported coal
Customers
Bedrock for our growth
as a Company
� Customer satisfaction surveys
� Formal and informal feedback
� Quality and reliability of power supply
� Improved notifications of disruption, failures or
Board of
Directors &
Leadership
Ensures the prosperity of Tata Power
through collective direction of the
Company’s affairs whilst meeting
the appropriate interests of our
stakeholders and shareholders
Employees
Form the backbone of our business
activities and play an important role
in improving productivity, efficiency
and boost our profits
maintenance for customer transparency
� Scheduled Board meetings
� Scheduled and special Board
Committee meeting
� Storage and trading of renewable energy, micro
grid operations, and electric vehicle charging
� Focus on customer-centric policies and ethical
billing
� Proactive interaction with investors for ESG
initiatives and strategy
� Periodic review of perceived risks and impact of
CSR activities
� Work-life balance
� Transparent appraisal and promotion policy
� Stability of internal policy
� Fair remuneration structure
� Training and seminars
� Meetings & Reviews
� HR programmes
� Employee satisfaction surveys
� Departmental meetings
� Townhall meetings
� Quarterly Management
communication
Suppliers/
Vendors
Help us develop our business
ecosystem, support our sustainability
initiatives and create shared value
NGO
Enable better implementation of our
environment and social initiatives
Local
Community
Media
Employee
Unions
Provides a better socio-economic
context in our operating
environment to ensure long-term
viability of our business activities
Plays a vital role in keeping our
stakeholders informed of business
developments, new products and
services as well as the impact of our
business operations
Help set standards for education,
skill-levels, wages, health and
employee benefits and working
conditions of our employees
� Regular Supplier/ Vendor
� Formal supplier assessment to verify ESG
meets
performance
� Contract revision and
negotiation meetings
� Project-based stakeholder
meets
� Periodic meetings
� Increased awareness for partnering in green
initiatives
� Ethical business practices
� Increased community involvement
� Transparency in business practices and
their impacts
� Project-based stakeholder
� Increased infrastructure for training community
meets
members
� Participation in CSR activities
� Safety and security of facilities as well as
� Media briefings
� Press releases
� Marketing communication
electricity supply
� Increased transparency and clarity in shared
information
� Scheduled meetings
� Dedicated surveys
� Ethical and responsible business conduct
� Equal opportunities for all
24
25
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Materiality
Integrated smart and
sustainable solutions
Our materiality assessment is a foundational aspect of our Integrated Report,
allowing us to gather insights on the relative importance of specific Environmental,
Social and Governance (ESG) issues and their impact on value creation. Topics that
are considered material to Tata Power are taken into immediate consideration,
given their influence on our business activities, stakeholders and their ability to
create sustainable value. Our material topics also provide further insights into our
stakeholders’ expectations, and the challenges and risks our Company might face
in the near future.
Our materiality assessment influences are:
Strategic Planning
Operation Management
Capital Investment Decisions
Strengthening our materiality assessment
For FY20, we undertook a new materiality
assessment methodology in accordance
with the
IIRC Framework to gain a
nuanced understanding of the most
relevant matters that could impact our
business in the short, medium and long
term. Our materiality process involved an
assessment of the importance of topics
through the evaluation of:
Magnitude of the effect
(for matters that have occurred, currently
exist, or will occur with certainty)
Likelihood of occurrence
(for matters where there is
uncertainty about occurrence)
The exercise provides detailed insight
into the analyses of both positive and
negative effects on present and future
material issues. The robustness of this
exercise also provides us with inputs to
build a sustainable strategy, considering
topics of importance to our Company
from
the Environment, Social and
Governance (ESG) perspective.
Materiality determination process
For our maiden Integrated Report 2019-20, we adopted a four-step process to
determine our material topics:
1. Identification of Relevant Topics
sectoral
The comprehensive list of material
topics was collated based on business
requirements,
insights,
stakeholder concerns, global issues
and peer analysis, ensuring that we
cover topics of most
importance
and relevance to our stakeholders as
well as those which may influence
intent and business
our strategic
activities. We also mapped the process
to ESG disclosure frameworks such
as GRI (Global Reporting Initiative)
and SASB (Sustainability Accounting
Standards Board).
2. Prioritisation of Material Topics
identified material
then prioritised
topics
The
were
through
collective inputs from key internal
and external stakeholders. During
our interactions, we used survey-
based assessment forms to capture
stakeholder responses. Our material
topics were then categorised based
on the magnitude of impact and the
likelihood of occurrence to facilitate
our internal strategy planning.
Materiality
determination
process
4. Refined strategic alignment
with our material topic
3. Validation of material topics
Our prioritised material topics enabled
us to better understand challenges
that could be encountered
in the
future. With keen insight into what
these challenges entail, we have
integrate
a
to
sustainability parameters
into our
strategy. This process is also interlinked
with strengthening our risk mitigation
and management, and enhancing our
decision-making processes.
foundation
robust
our
prioritisation,
Post
senior
management validated the final list
of material topics. This also enabled
us to further refine our material topics
and focus areas.
26
27
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Materiality
TATA P O W E R ’ S M AT E R I A L T O P I C S F O R F Y 2 0
Material
Topics
Strategic
Objective
Key Actions
Increase in
renewables
portfolio
Scale-up
Renewables,
Distribution,
Services and Energy
Solutions businesses
Customer
relationship
Building a customer-
centric organisation
Future ready Deleveraging
Balance Sheet
Human
Rights
Create an engaged,
agile and future
ready workforce
Waste
Management
Carbon
emission
management
Focus on
Sustainability with
an intent to attain
carbon neutrality
Focus on
Sustainability with
an intent to attain
carbon neutrality
Operational
Efficiency
Set new benchmark
in operational
excellence and
financial return for
existing businesses
� Developing an efficient structure to grow the business into industry
leadership position
� Arranging capital for investments in renewable energy projects
� Maintain market leadership in the rooftop solar business by targeting both
urban and semi-urban areas for expansion
� Focus on multi-fold growth in renewables EPC business
� Develop the Microgrid Business Model
� Minimise customer complaints (reduction in complaint index) and achieve
benchmark CSAT-Indicator of Customer Satisfaction
� Deployment of new technologies for enhanced customer experience
(AI, ML, DA etc.)
� Enablement of customer life-cycle management for Renewable Energy
(RE) customers
� Customise offerings (behind the meter BESS for C&I customers, elevated
structures micro inverters for residential and SME customers and different
customer financing solutions for B2B and B2C customers)
� Seamless experience in every customer online touch-points
� Roll out of value-added services for customer delight
� Specialised services for specific customer segments like senior citizens etc.
� Establish capital light structures to leverage on growth opportunities
� Monetise non-core assets to deleverage and strengthen balance sheet
� Continuously identify future opportunities
� Strengthen our annual strategy review and turnaround plan
� Adopt alternative business structure – debt light models through innovative
financial structuring
� Strengthening our labour management relations
� Ensuring diversity and equal opportunity and non-discrimination within the
organisation
� Freedom of association and collective bargaining
� Strict opposition to child, forced and compulsory labour
� Establishing stringent security practices
� Conducting human rights assessments as well as supplier social assessments
� Increasing initiatives to responsibly manage waste by
type and disposal
� Consistently building on our innovative initiatives to reduce GHG emissions
and improve operational efficiency to reduce energy consumption
� Reducing carbon intensity by increasing investments in renewable portfolio
� Phase out plans for thermal projects and retire existing thermal assets
without life extension
� Compensatory afforestation
� Aggressive growth in renewable energy-based capacity
(Utility scale, Microgrids, Rooftop)
� Exit businesses which do not support sustainability targets
� Deploy advanced technologies to manage assets
� Strengthening our approach to ensure short- and long-term electricity
availability and reliability
� Technical interventions taken to enhance the efficiency of the power plants
and renewable projects
� Increasing our initiatives to reduce transmission and
distribution loss
SDGs
Capital
Linkage
Material
Topics
Strategic
Objective
Key Actions
SDGs
Capital
Linkage
Corporate
Governance
Demand-side
management
Resource
availability
Biodiversity
Training,
education
and
development
Set new benchmark
in operational
excellence and
financial return for
existing business
Set new benchmark
in operational
excellence and
financial returns for
existing business
Focus on
Sustainability with
an intent to attain
carbon neutrality
Focus on
Sustainability with
an intent to attain
carbon neutrality
Create an engaged,
agile and future
ready workforce
Impact on
business due
to change in
Coal tax or
coal pricing
Sustainable
investing
Innovation
in process,
service &
solutions
Occupational
Health &
Safety
Resolution of
CGPL coal cost
under-recovery
Scale-up
Renewables,
Distribution,
Services and Energy
Solutions businesses
Leveraging digital
to establish new
business model and
enhance existing
business delivery
Set new benchmark
in operational
excellence and
financial return for
existing businesses
Capitals
� Provision of trainings and awareness programmes on anti-corruption
and anti-competitive behaviour at Tata Power
� Building awareness among stakeholders on change in regulatory norm
� Board-led architecture on high quality of governance and risk management
� Robust organisational structure to drive the culture of ethics (Tata Code of
Conduct)
� Increasing initiatives towards Demand Side Management (DSM) programmes
including residential, commercial, institutional and industrial
� Increasing net investment made in DSM programmes and corresponding
MWh saved or MW load shifted
� Building on our actions/future plans taken to ensure business continuity
during periods of water scarcity and coal deficits
� Promote resource efficient technology
� Improvement in operating parameters to reduce consumption
of coal and water
� Ensure and implement responsible business practices in areas of high
biodiversity value
Increase value added trainings conducted for employees
� Ensure regular performance and career development reviews for employees
� Increase health and safety trainings for contractors and sub-contractors
� Leadership and succession planning
� Introducing integrated talent management system and leadership
competency model
� Focus on E-learning and blended learning
� Build new competencies for growth
� Use of technologies like virtual and augmented reality for future learning
� Discussion with the respective state discoms for implementation of
High Power Committee recommendation
� Ensure periodic review of tax governance, control, and risk management
� Ensure frequent review of stakeholder and management concerns
related to tax
� Investment decisions to increasingly encompass sustainability linked
parameters
� No greenfield and brownfield thermal project going forward
� Enhancing partnerships and collaborations with new technology start-ups in
the energy solutions and services domain
� Integrating digital technology to improve asset performance and enhance
customer experience
� Ensure detailed coverage of health and safety topics in formal agreements
with trade unions
� Increase initiatives towards the reduction of safety incidents and
occupational hazards
� Consistently establish industry best practices on health and safety
28
29
Financial
Manufactured
Intellectual
Human
Social And
Relationship
Natural
Corporate
Governance and Risk
& Opportunities
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Tata Power’s commitment to UNSDG
In alignment
with global goals
We, at Tata Power, have committed to align our business activities with the United Nations
Sustainable Development Goals (UNSDG). Additionally, our policies at Tata Power are also
based on the UNSDG. We undertook a detailed SDG mapping study in FY18, where we
prioritised the SDG focus areas, identified high impact initiatives and developed a roadmap to
drive change. This was carried out through a detailed stakeholder engagement, interlinkage
with our materiality assessment and sector-specific priorities with an understanding of the
Company’s strategic intent and national priorities. The key outcome of this exercise led to
strategic bifurcation of business activities and CSR initiatives along with the mapping of the
respective SDGs through a priority analysis. In developing our roadmap, we have adopted
three-year targets for each prioritised business in alignment with the relevant UNSDG.
Additionally, our initiatives under each thrust area have an impact across our prioritised SDGs.
Our Company has prioritised 10 Sustainable Development Goals (SDGs):
Health & Sanitation
MAMTA, SAMMAAN
Education
VIDYA
SCALE
Livelihood
& Skill-Building
DHAAGA, ABHA,
ROSHNI, DAKSH
Financial
Inclusivity
ADHIKAAR
Emission reduction
Increasing
operational efficiency,
Innovation
Circular Economy
Fly ash utilisation,
reduce dependency
on mined resources
Business Thrust area
CSR Thrust area
Business Oriented
Tata Power Initiative
CSR Oriented
Water
AMRUTDHARA
Livelihood &
Skill-Building
DHAAGA, ABHA,
ROSHNI, DAKSH
Renewable
Energy
Tata Power
Renewable
Energy Limited
Microgrids
TP Renewable
Microgrid Limited
30
31
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Risk management
Building a
future ready business
We endeavour to thrive in an ever-dynamic business landscape with myriad risks
and opportunities. To ensure continuous value-creation for our stakeholders, we
periodically update our understanding of risks and opportunities that can influence
our business. We focus on identifying risks, understanding the magnitude of impact,
and potential time horizon of occurrence. Once we gain this understanding, we
build our mitigation strategies to enhance the resilience of our business against
various potential risks.
We have devised a Risk Management Policy, which can be
accessed on our website at https://www.tatapower.com/
corporate/policies.aspx. Aligned with this policy, we have
implemented a standardised Risk Management Process and
System. The process of risk identification is guided by the
Company’s objectives, external environment, industry reports,
internal stakeholders, among others. The risk identification
process covers the whole gamut of risks, including strategic,
tactical and operational. Once risks are identified, we designate
a risk owner and risk champion, who is responsible for devising
plans outlining mitigation actions for the assigned risks. The
identified risks with mitigation actions are then mapped onto
our internal system with details of allocation of responsibility
and timelines for achieving the targets. The Risk Management
System
facilitates Cluster Risk Management Committees
(CRMCs) to closely monitor and review the risk plans.
The mitigation strategy devised as part of the risk plan
also encompasses the frequency of revision and is closely
monitored at various levels. A measure called the Risk Mitigation
Completion Index (RMCI) is used to determine and monitor the
level of completion of each mitigation action area, where the
RMCI percentage is lower than the target, is monitored with
justifications sought for any deviation. Further, strategies are
devised to improve the (RMCI) score. Learnings from mitigating
a risk are also captured in the risk plan. This helps in cross-
functional and experiential learning across the organisation,
enabling effective and comprehensive risk management.
Our Risk Register clearly lays out details of mitigation plans.
CRMCs are responsible for closely monitoring and reviewing
the risk plans and mitigation action pertaining to various
business functions. As per the listing regulations, a Board Risk
Management Committee (RMC) has been constituted which
comprises three Independent Directors and two Non-Executive
Directors. The RMC meetings are held regularly to review
critical strategic risks. Key risks are monitored at the CRMC level.
Corrective actions, if any, are discussed and the mitigation plans
are revised accordingly.
Our risk management approach also focuses on ensuring
compliance with all relevant legislations. Tata Power Group
employs a proprietary software to run the Compliance
Management System (CMS) to closely monitor the status of
compliance with all the applicable laws and regulations. The
Compliance department updates the compliance report to
the senior management independently to ensure oversight
on compliance practices. Currently, Tata Power and all material
domestic subsidiaries are covered under the CMS umbrella.
This software sends alerts informing us of any changes in
regulations/laws and accordingly updates the database.
Additionally, the legislations which are no longer applicable are
disabled in the system.
For the remaining entities not under the CMS umbrella or an
IT-enabled system, the Compliance Monitoring Cell of Tata Power
seeks their status of compliance and reports to the respective
Board, in accordance with the Compliance Monitoring and
Reporting framework.
The present structure of governance and a uniform online
reporting system through CMS enables the Tata Power Group to
have an integrated reporting of compliance to its Management.
Senior Management
Compliance
Monitoring Cell (CMS)
Apex Compliance
Committee (ACC)
Chief Legal Office
(Chairman and Convener)
� Chief - IA & RM
� Chief - Thermal
� Chief - Renewable
� Chief - Transmission & Distribution
� Chief - Corp F&A
� Chief - Business HR
� Chief - Digital & Info Technology
� Chief - Compliance
32
33
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Risk management
Internal Financial Controls and Systems
The Management has implemented robust processes to ensure
that all Internal Financial Controls (IFCs) are effectively working.
The Company has an in-house internal audit function which
reviews the sustained effectiveness of IFCs by adopting a
systematic approach to its work.
To fulfil the requirements of the Companies Act, 2013, the internal
audit team has integrated IFCs into Risk Control Matrix (RCM)
of enterprise processes which are tested as per the approved
internal audit plan. Upon review of the internal audit observations
and corresponding actions taken, there remain no adverse
observations which have a financial and commercial impact or
material non-compliances which have not been acted upon.
Tata Power continues with the Control Self-Assessment (CSA)
process, whereby responses of all process owners are used to
assess internal controls in each process. This helps the Company
to make process improvement plans, identify focus audit areas,
design the audit plan and support CEO/CFO certifications for
internal controls.
Description
Mitigation strategy
Sr.
No.
1
Classification
of risk
Sector specific
risk
2
Technology
risk
� The poor financial performance of the
state Discoms (collection of tariffs in
accordance with PPAs)
� In renewables, creditworthiness and
business continuity of the customer
remains an issue
Cyber security risk threatening data
privacy and having potential to impede
operational transactions
Strategic
Linkage
SBO 3
SBO 8
� Close monitoring of financial health of the Discoms
through Discom Ratings by Ministry of Power
� Sustained advocacy with distribution companies and
regulatory bodies
� Diversification of renewable portfolio across various procurers,
tariff structures and states
� Continuous enhancement in automated detection and
SBO 6
preventive solutions to address evolving threats
� Continued reinforcement of security policies and procedures
� Enterprise-wide training and awareness programmes on
information security
� Inputs from Computer Emergency Response Team (CERT)
and other private Cyber Intelligence agencies, and enhanced
awareness of emerging cyber threats
� Periodic testing to validate effectiveness of controls through
Vulnerability Assessment and Penetration Testing
� Regular internal and external audits
� Investment in Cyber Insurance
� Continuous advocacy with procurers to execute revised PPA
following HPC recommendations
� Advocacy with state ministry and regulatory bodies at
SBO 1
SBO 8
various levels
� New avenues to utilise fly ash in ready mix concrete, slag
cement, fertiliser, etc. for 100% fly ash utilisation, study for
implementation of Flue Gas Desulphurisation plant (FGD) and
advocacy measures for passthrough of that cost
� Policy advocacy at the central and state level and exploration
of possibilities of legal remedial action, selective bidding and
avoiding specific identified states
� Credit risk assessment of private customers during bidding,
SBO 3
SBO 4
securitisation of payment through LC, advocacy for
enforcement of payment security mechanism of LC
� Mitigation through prudent operations management,
resource optimisation, leveraging upon diverse portfolio,
correct forecasting of cost escalations at the time of
bid, leveraging on presence across value chain from
manufacturing to operations, stringent IRR criterion at
the time of bidding, procurement of solar module from
tier 1 suppliers or own manufacturing unit guaranteeing
satisfactory yield
3
Regulatory risk
4
Commercial
risk
� CGPL coal cost under-recovery delay
in implementation of High Power
Committee (HPC) recommendations
� Non- renewal of PPA for Trombay
Power Plant beyond FY24
� Water securitisation of Hydro Plants-
Risk of reduced generation in non-
monsoon months due to eastward
diversion of water
� Risk of violating environment norms
� Non-adherence of Government/
discoms to PPAs and opening up
PPAs for renegotiations, especially for
specific renewable assets
� Risk accumulation in large projects, EPC
business and rooftop solar
� Moderation of solar and wind tariff
putting pressure on margins in
renewable sector
Sr.
No.
Classification
of risk
Description
Mitigation strategy
5
Financial risk
� Availability of cost-effective capital:
availability of debt in terms of current
level exposure of the banking sector to
stressed asset
� High leverage: Increased borrowings
over last few years primarily due to
losses in CGPL
� Renewal of license of KPC mine in
Indonesia
� Diversification of lenders base by reaching out to lenders who
have not breached exposure limit, diversification to overseas
borrowing, ECBs, ECAs, etc.
� Monetisation of non-core assets and other investments
to deleverage
� Advocacy with Indonesian government along with JV
partners
6
7
Business risk
Availability of fuel for thermal plant at
optimal cost
Exploration of alternative coal sources, liaise with coal
companies to understand their production and dispatch plan,
reduction of coal consumption though operational efficiency
Climate change
and Business
continuity
linked risks
� Availability of fuel for thermal plant at
� Lowering of carbon intensity by focusing more on the
renewable portfolio as well as venturing into energy efficient
businesses like Rooftop Solar, EV charging, Microgrids, etc
� Improvement in operational efficiency for thermal power
plants
� Installation of pollution control and energy efficient
equipment
� Establishment of robust Business Continuity and Disaster
Management Plan (BCDMP) evidenced through recertification
on ISO 22301:2012 from the British Standards Institution (BSI)
optimal cost
� Climate change linked transitional risk:
possibility of government capping the
amount of carbon emissions generated
� Climate change linked Physical risks:
operations located in coastal area
may get affected with rise in sea level,
fluctuations in weather conditions
leading to rise in water temperature
potentially affecting processes,
extreme weather events such as floods
and droughts, fuel and water scarcity
� Risk of pandemic and other natural
disasters
Strategic
Linkage
SBO 2
SBO 8
SBO 4
SBO 8
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
l
u
e
l
O
u
r
V
a
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
34
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
35
Response to COVID-19
Track. Adapt.
Transform. Achieve.
The advent of the global pandemic, COVID-19, has accentuated the need for
sustainability to be ingrained at the heart of our business operations. Apart from
the acute health impacts, COVID-19 has also severely affected business operations
and the economy across the globe.
Leveraging our commitment to ‘Responsible Growth’, Tata
Power has shown its strategic preparedness by analysing future
risks the Company could face with respect to the causatum of the
pandemic. A COVID-19 Apex Response Committee was formed
to oversee organisational preparedness and management of
the pandemic from a business continuity as well as employee
safety perspective. In addition to segregation of essential and
non-essential staff, location-wise Emergency Response Teams
(ERTs) were formed and work from home or sites was assigned
on a rotational basis.
We are humbled to state that all our business operations of
Power Generation, Transmission & Distribution and Renewables
were fully operational during the outbreak.
We worked tirelessly during the pandemic to set up COVID-19
guidelines and standard operating procedures (SOPs) across
the organisation.
Apart from ensuring a safe strategy to combat the COVID-19
crisis in the short-term, we have also initiated long-term
resilience mechanisms to strengthen our response to future
risks or disasters.
This involved the upgradation of our Business Continuity
Plans to a new normal condition post lockdown, handholding
of various divisions to articulate site-specific scenarios and
establish operating strategies for business continuity.
O U R S T R AT E G I C WAY F O R WA R D I S P R O V I D E D B E L O W:
Pre-lockdown
During lockdown
Post-lockdown
Pre-planning
� Safe practices
� Awareness drive
� Emergency protocols and
a guidelines for all
� Essential services planning
� Communication to
employees and associates
SOP
Long-term BCP
� Entry/Exit norms (social distancing,
� New-normal long-term business
multilayered screening, self
declaration etc.)
� Work from home
� ROTA for critical functions
� Guidelines for works,
offices and colonies
� Communication drive
continuity preparedness
� BCP template shared with divisions
for assessment and feedback
considering various scenarios
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
l
u
e
l
O
u
r
V
a
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
36
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
37
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
Our
value-creation
paradigm
40 Manufactured Capital
Intellectual Capital
52
58 Human Capital
70 Social and Relationship Capital
98 Natural Capital
114 Financial Capital
Developing assets to create long-term
value for our stakeholders
Manufactured Capital
The future of
energy infrastructure
Over the next decade, the Indian economy will continue to grow at a rapid
pace and a key enabler of that will be India’s ability to fulfil its energy needs.
Our future growth would be to enhance customer experience of the energy
consumer like never before by focusing on innovation and technology,
with emphasis on renewable power, power distribution and service-led
business. This will bring in greater value and help us align with emerging
consumer needs.
Mr. Praveer Sinha, CEO and MD
Tata Power relies on developing assets to create long-term
value for its stakeholders. We are committed to growing
responsibly and delivering superior products and services
to our consumers. Our growth is driven by our strategic
objectives, which take into account the material issues
that impact our business. We also factor in the inherent
risks involved in asset development and address relevant
stakeholder concerns. Our asset and product development
influence our performance across other
significantly
capitals as well.
Our asset portfolio
• Power generation facilities
• Power transmission facilities
• Distribution and substation facilities
• Solar cell and module manufacturing
Our product portfolio
• Solar PV panels
• Microgrids
• Solar pumps
• Batteries
• Smart appliances
EV Charging
•
Infrastructure
• Solar RO systems
PE R FO R M A N C E H I G H L I G H T S
421 MW
1.9 GW
Of Solar rooftop EPC business,
including 28 MW of solar
rooftop under PPA
Solar PV modules shipped
globally by Tata Power Solar
Systems Limited
312 MW
Of solar power generation
capacity added in FY20
700 MW
Solar projects under various stages
of implementation under Tata
Power Renewable Energy Limited
51%
170
Stake in Central Electricity
Supply Company of Orissa Ltd
EV charging points in
20 cities in India
IMS COMPLIANT
Thermal stations
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
SBO 3
� Increase in renewables
� Moderation of solar
� Prioritised focus
Scale-up Renewables,
Distribution, Services and
Energy Solutions businesses
energy portfolio
� Operational efficiency
SBO 8
Achieve benchmark
operations, attain
market leadership and
outperform set targets
and wind tariff
putting pressure on
the margin
� Credit worthiness
and business
continuity of the
customer
towards renewables
� Dependence
on imported coal
� Quality and reliability
of power supply
� Storage and trading
of renewable energy,
microgrid operations, and
electric vehicle charging
I M PAC T O N OT H E R C A PI TA L S
Our performance in Manufactured Capital has a significant influence across other capitals.
Social & Relationship Capital
Impact
� Availability of affordable and
reliable electricity to remote
areas across India
� Promote rural entrepreneurship
and improve quality of life
� Cost effective solutions
through rooftop solar
Natural Capital
Impact
� Reduction in carbon emissions
due to initiatives like microgrid
installation, solar rooftop, etc.
� Reduction in overall
carbon intensity due to
implementation of efficiency
improvement measures as well
as increased investment in
renewable portfolio
Manufactured
Capital
Human Capital
Impact
� Adequacy of competent
manpower and safe
working conditions during
asset development
Financial Capital
Impact
� Increased revenue
generation opportunities
� Reduced margins in
renewable sector due to
aggressive expansion
Intellectual Capital
Impact
� Innovation to improve
generation and
transmission efficiencies
� Innovation in microgrid and
solar rooftop domain
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
40
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
41
C U M U L AT I V E A N N U A L C A PA C I T Y A D D I T I O N
Fuel Source State
Location
TATA P O W E R H A D A N O P E R AT I O N A L G E N E R AT I O N C A PA C I T Y O F 12 , 26 4 M W
D O M E S T I C A L LY A N D 478 M W O V E R S E A S F R O M VA R I O U S F U E L S O U R C E S :
Normative Capacity
under Management
(MW)
PPA
Tenure
Return Profile
4,150
Long term
Bid-based
Category
Total
(MW)
8,805
Thermal –
Coal / Oil /
Gas
Gujarat
Mumbai
Jharkhand
Jharkhand
Mundra
Mumbai
Maithon
Jojobera
930 [additional 500 MW
capacity (Unit #6) is
classified as assets held
for sale]
1,050
547
Power generation
Over the past decade, we have increased
our generation capacity by almost five-fold.
Currently, the majority of our generation
comes from coal-based thermal power
plants. In an endeavour to drive resource
conservation and increase sustainability
of our business, we are focusing more on
energy efficiency, renewable energy, and a
shift in fuel mix towards non-fossil fuel.
Furthermore, our Business Continuity and
Disaster Management Plan is firmly in place
to increase the resilience and reliability of
our assets during disaster events and
mitigate financial losses, thereby supporting
our sustained growth in the sector.
)
W
M
(
y
t
i
c
a
p
a
C
e
v
i
t
a
u
m
u
C
l
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
100%
80%
60%
40%
20%
0%
9
0
Y
F
e
r
o
f
e
B
9
0
Y
F
0
1
Y
F
1
1
Y
F
2
1
Y
F
3
1
Y
F
4
1
Y
F
5
1
Y
F
6
1
Y
F
7
1
Y
F
8
1
Y
F
9
1
Y
F
0
2
Y
F
F U E L M I X ( M W ) ( D O M E S T I C + I N T E R N AT I O N A L )
12,742 MW
Total
375
Waste Heat
Recovery/ BFG
8,859
Thermal
932
Wind
871
Hydro
1,705
Solar
D I S T R I B U T I O N O F I N S TA L L E D C A PA C I T Y ( D O M E S T I C + I N T E R N AT I O N A L ) (%)
Odisha
Kalinganagar
40
Uttar Pradesh
Prayagraj
1980
Rithala
(Gas based)
Jamshedpur
108
120
Kalinganagar
135
Haldia
Bhira
Khopoli
Bhivpuri
120
300
72
75
Wind Farms
932
1,705
Solar
Photovoltaic
(PV)
Thermal –
Waste Heat
Recovery
Hydro
New Delhi
Jharkhand
Odisha
West Bengal
Maharashtra
Maharashtra
Maharashtra
Renewables Maharashtra, Gujarat, Madhya
Pradesh, Karnataka, Tamil Nadu,
Rajasthan, and Andhra Pradesh
Andhra Pradesh, Bihar, Delhi,
Gujarat, Haryana, Jharkhand,
Karnataka, Madhya Pradesh,
Maharashtra, Punjab, Rajasthan,
Tamil Nadu, Telangana, Uttar
Pradesh and Uttarakhand
Domestic Total
I N T E R N AT I O N A L A S S E T
70%
Thermal
70%
30%
42
13%
Solar
7%
Hydro
7%
Wind
3%
Waste Heat
Recovery/ BFG
Fuel
Source
Thermal –
Coal / Oil /
Gas
Hydro
Country
Location
Normative Capacity
under Management
(MW)
PPA
Tenure
Return Profile
Indonesia
Bhutan
Zambia
Georgia
PT Citra
Kusuma
Perdana
Dagachhu
Itezhi Tezhi
54
126
120
178
Long term
Bilaterally negotiated
(captive)
Short term
Merchant Sale
Long term
Regulated
Long term
Regulated
International Total
Grand Total
Medium
term
Regulated
Long term
Long term
Long term
PPA
Long term
PPA
Regulated
� Regulated returns
� Bilaterally negotiated
(captive)
Tolling / Fixed tariff
Under Platform
Management
None
PPA is being pursued
Long term
PPA
Long term
PPA
Short term
PPA
Medium
term PPA
Bilaterally negotiated
(captive)
Bilaterally negotiated
(captive)
Merchant sale and
bilateral contracts
Regulated
375
447
Long term
PPA
Feed-in tariff and
bid-driven contracts
2,637
Long term
PPA
Feed-in tariff and
bid-driven contracts
12,264
Category
Total
(MW)
54
246
178
478
12,742
43
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20
Transmission and distribution
Transmission and distribution loss is a
cause for concern at Tata Power. Not only
does it directly contribute to revenue
loss, but it also increases greenhouse gas
(GHG) emissions, cost to consumers and
may even put public health and safety
at risk. To address this, we have steadily
enhanced our operational efficiency and
reduced technical and commercial losses
while expanding our transmission and
distribution infrastructure.
O U R I N I T I AT I V E S T O R E D U C E T E C H N I C A L & C O M M E R C I A L L O S S P R I M A R I LY F O C U S O N :
Process Management
Workforce Engagement
Infrastructure
� Special electricity court for theft
and electricity dues
� Outsourcing collection of
outstanding amounts
�
Inclusion of ABHA for revenue
collection from jhuggi
jhopdi clusters
� Customer counselling group
leading the recovery
� Disconnection drives along with
zonal staff for recovery
� Recovery of Disconnection with
Due cases (DW) arrears
� Focus on reading and
billing quality check
� High-revenue
customer data analysis
� Mass enforcement raids in
high-loss areas
� Camp connections in slum areas
� Optimising revenue billing cycle
� Data Analytics – defaulter/
theft prediction
� Utilisation of existing
lightly loaded feeders
through load balancing
� Elimination of intermediate
voltage ratio in phased manner
to reduce technical loss involved
in voltage transformation
within the grid
�
Installation of electronic meters
and automated meter reading for
high-revenue customers
� Revision of meter specifications
�
Increasing payment avenues
� SMART metering
�
Increasing digital
payment avenues
� Reducing load on heavily loaded
feeders and optimising circuit
length by utilising new sources,
i.e. grids and transformers
� Optimising overall DT loss by
adding new DTs at load centre to
reduce the LT circuit length and
for mitigation of overloaded DTs
� Replacing sick assets, i.e., PILC
cables, sick DTs, tampered service
lines and energy meters which
are damaged or worn down
O U R C U R R E N T T& D P O R T F O L I O
Transmission (Regulated)
Mumbai Transmission
Powerlinks (Joint Venture)
Total
T&C losses
Mumbai Distribution
Tata Power Delhi Distribution
Tata Power Ajmer Distribution
Distribution (Regulated)
Mumbai Distribution Licence
Delhi Distribution Licence
Ajmer Distribution Franchises
Total
CKM
1,206
2,325
3,531
FY19
0.7%
8.0%
11.2%
FY20
1.4%
7.9%
10.0%
Consumers (in lakh) as on 31st March, 2020
7.2
17.5
1.5
26.2
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
44
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
45
Our Renewables Story
T O TA L R E N E WA B L E P O R T F O L I O ( M W )
India has immense Renewable Energy (RE)
potential (ground mounted solar: 750 GW;
wind: 300 GW and rooftop solar: 210 GW).
Solar and wind energy resources could
change the dynamics of the power sector.
Currently, RE power is cost-competitive to
fossil fuel power plants, and a transition
from fossil fuel to RE sources is clearly
underway. This is further reinforced by
India’s commitment at COP21 to reduce
its GHG emissions intensity per unit GDP
by 33-35% below 2005 levels, by 2030.
To meet its commitment, India has set an
ambitious target of achieving an installed
RE capacity of 175 GW by 2022. The target
was further recalibrated in 2019 to 500 GW
by 2030, with a set of favourable policies
and framework in place which provided
a fillip to the renewable industry in India.
Realising the potential and importance
of RE, Tata Power had commissioned its
first wind asset at Supa in Maharashtra
in 2001 and
its first Solar asset at
Mulshi in Maharashtra in 2011. As an
environmentally
responsible business
entity, Tata Power has steadily added
renewable assets, both wind and solar,
to its portfolio since then. To fast track its
commitment to increasing renewables
in its portfolio mix, Tata Power in 2016
acquired 1,010 MW of renewable assets
of Welspun Energy, one of the largest
renewable acquisitions at that time.
Currently, with 2,637 MW of operational
wind and solar capacity in India, we
are the third largest in the RE market.
Today, we are adequately equipped to
expand our RE footprint in India and
select geographies overseas by using
our expertise
in project design and
development, operations, maintenance,
asset management, and safety. This
expertise is being further leveraged to
set operating benchmarks for every RE
asset as well as create a robust capacity
development pipeline.
I N S TA L L E D C A PA C I T Y O F R E N E WA B L E E N E R G Y ‑ 2 , 637 M W
FY20
932
FY19
FY18
FY17
932
932
811
1,705
1,393
1,190
935
FY16
623
56
FY15
519
FY14
FY13
487
487
56
30
30
FY12
416
30
FY11
228
4
FY10
218
FY09
FY08
100
100
Wind
Solar
1,705
Solar commissioned
700
Under-
construction Solar
932
Wind
Gujarat | 694 MW
Karnataka | 619 MW
100
400
194
569
50
Rajasthan | 550 MW
Maharashtra | 422 MW
Tamil Nadu | 371 MW
Andhra Pradesh | 305 MW
215
150
185
133
50
239
251
120
Madhya Pradesh | 174 MW
Uttar Pradesh | 101 MW
Bihar | 41 MW
Punjab | 36 MW
130
44
1
100
41
205
100
36
Telangana | 15 MW
Jharkhand | 5 MW
Delhi | 2 MW
Uttarakhand | 1 MW
15
5
2
1
Operating solar asset
Operating wind asset
Under construction solar asset
We have developed a strong portfolio of 1,705 MW solar
generation capacity across 14 states and a Union territory. The
aggregate wind energy capacity stands at 932 MW across seven
states as on 31st March 2020.
We constantly strive to improve the operational efficiency
of our RE power plants to ensure maximum utilisation and
increased generation to serve our customers. Few initiatives
undertaken were:
Currently, five of our renewable projects are registered with
the Clean Development Mechanism (CDM) programme of the
United Nations Framework Convention on Climate Change
(UNFCCC) – one wind project each in Gadag (Karnataka) and
Khandke (Maharashtra), two in Saurashtra (Gujarat), and one
solar project in Mithapur (Gujarat).
In FY20, we traded 1,28,196 Carbon Credits (CERs) from these
projects, generating gross revenue of ₹ 6.36 crore. Walwhan
Renewable Energy Limited (WREL) has eight CDM registered
projects, but no CERs were issued or traded in FY20.
� Drone-based thermal imaging to identify underperforming
solar assets in large solar fields to reduce generation loss and
improve efficiency
� Seasonal tilting of solar panels to reduce pointing error and
enhance yield from solar PV plants, leading to efficiency
improvement by 1-2%
Power-up technology is being explored for implementation in
FY21 to enhance the power output of wind turbines, as well as
e-security integrated with drones
46
47
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 D O M E S T I C S O L A R P V P R E S E N C E ( I N M W )
1,705
Total
215
Rajasthan
130
Madhya Pradesh
36
Punjab
2
Delhi
569
Karnataka
205
Andhra Pradesh
100
Gujarat
15
Telangana
1
1
251
Tamil Nadu
133
Maharashtra
41
Bihar
5
Jharkhand
1
Uttar Pradesh
Haryana
Uttarakhand
D O M E S T I C W I N D E N E R G Y P R E S E N C E ( I N M W )
932
Total
185
Rajasthan
50
Karnataka
239
Maharashtra
120
Tami Nadu
44
Madhya Pradesh
194
Gujarat
100
Andhra Pradesh
Microgrids – empowering every individual
In recent years, grid-electrification coverage and adoption have
increased significantly among rural households. However, rural
consumers at many places are still deprived of reliable power
supply and continues to face outages, load shedding, and
voltage fluctuations. These issues inhibit them from taking
a grid supply, especially rural enterprises which rely on diesel
generators. For these people, affordability is also one of the key
barriers to exploiting electric power for economic growth.
Keeping those constraints in mind, TP Renewable Microgrid
Limited (TPRMG) plans to set up the world’s largest number
of decentralised solar microgrids that will position India as the
global leader in clean, decentralised, affordable and reliable
power supply. We also aim to catalyse a wave of energy-enabled
rural economic development driven by micro-entrepreneurs. We
have a strategic plan to develop demand for mini and microgrids
and set up 10,000 microgrids over the next six years catering to
about five million households. Once at scale, TPRMG anticipates
supporting 100,000 rural enterprises, creating 10,000 new green
jobs, and providing irrigation for over 400,000 local farmers.
This venture will also ensure lowering effective electricity
costs and carbon footprint and will amplify the Government of
India's ongoing campaign to provide electricity to rural areas,
unleashing the potential of renewable microgrids to serve
households and businesses that suffer from poor reliability and
coverage by traditional grid-based power.
Tata Power is currently looking at regions in Bihar and Uttar
Pradesh, which are power starved or face issues of quality in
power supply, for setting up microgrids. Microgrid projects are
being executed in the adjoining villages of Muzaffarpur and
Samastipur districts in Bihar, and Gonda and Bahraich district in
Uttar Pradesh, with 18 microgrids commissioned and charged
as on 31st March 2020. Further, we have created a healthy
pipeline of 55 microgrid projects covering both the states. The
microgrid installations could experience policy and regulatory
hurdles, and legal and technological risks. Accordingly, we have
identified mitigation measures for the key business risks linked
with their wider implementation to ensure that our capacity
enhancement is not impacted.
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
48
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
49
Rooftop Solar
Tata Power Solar Systems Limited, TPSSL has been India’s top
solar rooftop EPC player since the past six years. Compelling
industrial
economics, especially for the commercial and
segment, favourable government policies, and
increased
environmental awareness have been the key growth drivers. We
serve customers across residential, commercial and industrial
segments and institutions. Our approach to rooftop solar can be
broadly classified into two categories – own and operate solar
rooftop assets under PPA and build rooftop projects for other
customers under EPC contract. Our total portfolio is about 421
MW (as on 31st March 2020), of which 28 MW is under PPA.
For 29 years, Tata Power, through its solar arm,
TPSSL, has been manufacturing cells and modules
by focusing on cutting-edge technology and world-
class innovation. With over 1.9 GW of modules
shipped globally, our cells and modules are
recognised for their quality and reliability across
the world. We offer bankable tier-1 solar modules
to multiple customer segments, with a range of
configurations, power outputs and module sizes.
TPSSL became the first solar manufacturer in India
to achieve the milestone of shipping 1 GW modules
worldwide, cementing its position as a leading
player in the global PV module manufacturing
industry with
in-house production capacity of
300 MW cell line and 400 MW module line.
EV Charging Infrastructure – towards
greener mobility
We intend our state-of-the-art and customised EV charging
solutions to form the infrastructure backbone for a growing
EV ecosystem and provide customers access to this energy-
efficient option with ease. Tata Power is a strong supporter of
the government's National Electric Mobility Mission. Being part
of the Tata Group enables us to derive synergies from other
group companies, particularly Tata Motors’ planned roll-out of
electric cars. Starting from our first EV charging station set up in
Mumbai, we have set up 170 EV charging points across 20 cities
including Mumbai, Pune, Delhi, Bengaluru and Hyderabad as on
31st March,2020. We are also located at Tata Motor dealerships
and retail outlets of other Tata Group Companies like Croma,
Star Bazaar, Titan among others.
As part of the customised solution, we have partnered Prakriti
E-mobility Solutions, an app-based EV service provider, to
provide charging infrastructure and support their EV taxi fleet
in Delhi and NCR. As part of the agreement, Tata Power will
design, procure, install and manage all charging infrastructure
– which will see installation of about 50 charging stations
near Delhi airport, Gurgaon and North Delhi. We have also
joined hands with Jaguar Land Rover (JLR) to provide
end-to-end EV charging solutions. We will facilitate the
installation and management of chargers across JLR’s retail
network of 27 outlets in 24 cities and at their customers’
residence or office. To enhance our portfolio and strengthen
cross-industry partnerships, we have signed a memorandum
of understanding for setting up commercial EV charging
stations with Hindustan Petroleum Corporation Ltd., Indian Oil
Corporation Ltd. and Indraprastha Gas Ltd.
W O R L D ’ S L A R G E S T S O L A R R O O F T O P I N S TA L L AT I O N
16 MW
at Radha Soami Satsang
Beas, Amritsar
19,000
tCO2e offset annually
W O R L D ’ S L A R G E S T S O L A R R O O F T O P I N S TA L L AT I O N
O N A C R I C K E T S TA D I U M
82.8 kWp
at Cricket Club of India,
Mumbai
840
tCO2e offset annually
W O R L D ’ S L A R G E S T S O L A R C A R P O R T
2.67 MW
at Cochin International
Airport, Kerala
1,868
tCo2e offset annually
Solar Water Pumps
Solar water pumps has been a focus area for the Government of India, as it aligns with the twin priorities of agriculture and renewable
energy. Through the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) scheme, the government plans
to provide solar water pumps to 3.5 million farmers. Tata Power, with its strong brand, robust products and channel network, is well
poised to reach out to rural India. Till date, we have built a portfolio of over 25,000 solar water pumps across India.
Highlights of Tata Power’s EV
charging infrastructure
� Diverse charging standards
and specifications
� Different EV vehicle categories
and manufacturers
� Variety of use-case scenarios —
EV fleet solutions, commercial
spaces and office charging,
public charging etc.
� Charging infrastructure set
up across 20 cities, including
Mumbai, Pune, Delhi,
Bengaluru and Hyderabad
� Smart charging with
Tata Power Mobile
� Last-mile charging
We firmly believe
in empowering
communities from all walks of life and
are in the process of increasing our
generation, distribution and transmission
portfolio as well as service offerings to
journey ahead reliably
power
and responsibly. For detailed
insight
into some of our value-added services,
please refer to the Social and Relationship
Capital on page 70.
India’s
50
51
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Intellectual Capital
Driving change
through innovation
India is at a cusp of a huge disruption in the energy market with
utilities venturing into IoT and digital services backed by innovation.
We, at Tata Power, are prepared to embrace this paradigm shift
with our consumer-centric growth plan. These initiatives are a
testament to Tata Power being the driving force of tomorrow’s
Smart Consumers.
Mr. Praveer Sinha, CEO and MD
At Tata Power, our intellectual capital primarily consists of our intellectual property such
as patents, copyrights, software, rights and licences and our institutional knowledge
which is embedded into our business activities. We aspire to become the “lead adopter
of technology with a spirit of pioneering and calculated-risk taking,” thus enabling the
adoption of advanced and disruptive technologies. This supports the development
of products and technological processes through a structured short-, medium- and
long-term technological roadmap.
Our innovation projects are tailored to address stakeholder needs directly. We further
aim to make the distribution grid robust and automated through technological
interventions. Our performance in intellectual capital has a significant impact across our
capitals as well as internal and external factors that have a certain degree of influence
on the Company.
INNOVATION COUNCIL
Formed in June 2018,
first-of-its-kind
PE R FO R M A N C E H I G H L I G H T S
D 4 CRORE
Expenditure on installation of grid-scale,
battery-based energy storage system in
Rohini, New Delhi, by TPDDL
NEW ADDITIONS
Solar Rooftop Services, Electric Vehicle
infrastructure, Home Automation and
Microgrids, SMART meters and battery
based energy storage.
52
D 95 CRORE
Expenditure on Advance metering
infrastructure and installation of
smart meters in Radio Frequency
(Mesh) network, by TPDDL
ADDED EFFORTS
1. Collaborative efforts in TPDDL
2. Setting up the Central Control Room
for Renewable Assets (CCRA)
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
� Increase in renewables
portfolio
� Customer relationship
� Carbon emission
management
� Operational efficiency
� Innovation in process,
service and solutions
� Renewables and
thermal capacity
utilisation
� Climate change and
business continuity
linked risks
� Prioritised focus
on renewables
� Quality and reliability
of power supply
� Storage and trading
of renewable energy,
microgrid operations, and
electric vehicle charging
SBO 3
Scale-up Renewables,
Distribution, Services and
Energy Solutions businesses
SBO 5
Building a customer-
centric organisation
SBO 6
Leverage digital technology
to establish new business
model and enhance
existing business delivery
I M PAC T O N OT H E R C A PI TA L S
Our performance in Intellectual Capital has significant influence across all other capitals.
This has further been elaborated in this chapter.
Natural Capital
Impact
� Home automation services to minimise
electricity consumption
� Technological enhancement in
business operations to enable waste
and emission minimisation
� Replacing diesel generator with Multi-
Fuel Biomass energy generator at
Microgrid plant
Social & Relationship Capital
Impact
� Smart energy meters for rural customers,
special invertors etc.
� Partnership with various academic institutions
and businesses to develop and evaluate new
sustainable technologies
� Demand side management schemes and offers
for end customers for savings in energy cost
� Development of small micro enterprises —
cost effective energy through microgrids
� 1.95 lakh Smart meters installed by TPDDL
� Battery energy storage system
� Home automations, IoT based solutions
leading to energy savings and reduction of bills
Intellectual
Capital
Human Capital
Impact
� Integration of technologies
to digitally augment the
efficiency of management
systems and processes
Financial Capital
Impact
� Dedicated R&D expenditure
towards innovative
technologies that ensure
cost efficiency and
reduce financial loss
Manufactured Capital
Impact
� Innovative technologies
to enhance the operational
efficiency of our
infrastructure and assets
� EV charging, microgrids and
solar rooftop infrastructure
53
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Tata Power’s journey of Innovation
Our Innovation Councils
At Tata Power, we are guided by our four pillars of innovation. This enables us to develop projects around our core technological
requirements and accordingly evolve a required timeframe. We follow a multi-step process for ideation, innovation and
implementation.
Pillars of Innovation
Technological Initiatives and Progress Mapped
Building Innovative Capabilities
� Shortlisting of ideas followed by council reviews and periodic review by the MD to track project
Assessing Market Needs
progress
� Through E-hackathon challenges and training programmes to encourage employee
participation
� Innovation efforts recognised as part of the formal employee PMS
� Long-term strategy planning with keen insights into emerging customer needs
� Technology roadmap exercise with plotting of short-term, medium-term and long-term
(potential) technology developments and identification of areas to focus on
Leveraging Partnerships
� Partnerships with academic institutions such as IIT Bombay as the industry partner in the Clean
Coal Centre to look for long-term solutions to the issue of emissions from the power sector
� Clean Energy International Incubation Centre (CEIIC), a joint initiative of the Government of
India and Tata Trusts, to encourage and create large-scale sustainable, commercially viable,
high quality and affordable solutions
Evaluating R&D Projects
� Annual Business Planning exercise to track progress and improvement in projects across every
division/function
� A separate budget is earmarked for undertaking work on innovation projects that have met a
certain minimum criterion defined in the stage-gate process
Our approach to innovative transformation
Our innovation is not solely driven by
the management, rather our employees
form the foundation of our innovation
culture. To build capability on innovation,
the first innovation council was formed in
June 2018. The members of this council
were selected from the brightest of our
employees, with a focus on diversity
and inclusivity. The 40-member council
was subdivided into six teams to push
innovative ideas with a strong yet practical
outlook towards implementation.
The councils have an established objective to meet challenges, improve performance and create an environment of innovation in
the organisation. They also give the necessary impetus for follow-through of ideas, culminating in the implementation of shortlisted
projects. We also build a baseline of ideas received through various competitions and forums such as Shikhar, ACE, Idea Crucible,
Ideation Hackathon and Cleantech. This process involves evaluation and selection of shortlisted ideas for current business priorities.
The final investment decisions are made based on Board approval.
Innovation Council
Members
Initial and Shortlisted Ideas
Corporate Innovation Council
Hydro Innovation Council
Trombay Innovation Council
T&D Innovation Council
43
21
13
18
75 initial and 8 shortlisted
145 initial and 5 shortlisted
181 initial and 4 shortlisted
21 initial and 6 shortlisted
Our Innovation Hub
In addition to our innovation councils, we have a single database
for the Tata Ideas Platform that integrates the entire employee
database for a seamless sign-in process. The introduction of the
Innovation Hub provides a go-to site for innovation at Tata Power.
Tata Innovation Management System (IMS) provides a platform
for posting and tracking ‘blue sky’ ideas and addressing
business challenges. This includes Tata Innovista to recognise
breakthrough and step-change innovations. Other features are
blogs, conversations via @Yammer page, news and updates,
repository of intellectual property documents, quick links to
the ‘Innovation Council sub-site’ and ‘Tata IMS platform’, and a
photo and video gallery.
The benefits of having an integrated employee base results
into an augmented amount of ideas on these platforms,
complemented with diversity and ‘out of the box’ thinking.
54
55
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Our domains for core innovation
Our collaborative projects in innovation and CCRA
Our R&D expenditure is dedicated towards improving energy efficiency, renewable energy technologies, distributed energy,
transmission and distribution technologies, advanced generation technologies and innovative sustainability-related services.
Investments towards smart grid technologies such as smart meters, sensors, Internet of Things (IoT) in transmission and distribution
aim to make the network more intelligent and efficient.
1. Building on Renewable Energy Technologies
5. Innovative sustainability related services
� Grid-injected solar plants, which
largest
utility owned 1MWp grid-connected rooftop solar plant
commissioned in 2010. This received recognition as an
innovative approach at Innovista
include the
� Robots for high rise painting and tunnel inspection
� Solar PV panels have been provided to replace diesel
generators for 25 telecom towers. Thin film technology is
able to overcome shadow effect of nearby structures and can
augment power to local grids
� Deployed Radio Frequency (RF) mesh canopy in areas of
operation and introduced smart meters for customers
� Launched IoT-based Smart Consumer Substation, enabled
by Tata Communications
� Utilisation of drones and
pile assessments, thermal
open switch yards
Image Analytics
imaging of PV
for coal
farms and
The Central Control Room for Renewable
Assets (CCRA) is currently deployed for 1.2
GW of renewable assets. The CCRA aims to
augment upcoming and work-in-progress
renewable assets. The monitoring and
analysis of production level KPIs involve
data acquisition, visualisation and a wide
range of analytics. Supplementary to a
data repository for renewables, the CCRA
also helps improve operational efficiency
and reduces downtime.
2. Distributed Energy
6. Technology absorption, adaptation and innovation
� Demand response Hot Spot and Energy transition with
renewables-based tariff for open access consumers
� First SAP ISU implementation in Rajasthan
3. Transmission and distribution technologies
� For FY20, installation of Battery Energy Storage System
(BESS) – 10 MWh system at Rohini Grid Station
� The system addresses:
− Peak Load Management
− Deviation Settlement Charges
− Congestion Management
− Asset Life Enhancement
− Investment Postponement
− Enhancing Solar Grid Capacity
− Support to Delhi Metro during exigencies
− Implementing multi-fuel power and heat generation
systems for rural microgrid applications
4. Driving Energy Efficiency
� Demand Side Management Schemes and offers
for
end customers
� These initiatives include:
− AC replacement scheme
− Super-efficient BLDC fan
− LED lighting products
− Ground fault neutraliser system in FY20 to help with earth
fault without the need of any outage enhancing reliability
− Community storage at DT level in FY20, a customised bus
arrangement for battery storages to reduce asset stress
during peak hours
56
� Launch of web-based digital signage software, enabling self-
healing features and a robust client-computing solution.
� Comprehensive adaptation of responsive and intuitive User
Interface (UI) in multiple home-grown applications such as
Training-Information-System-Dashboard, My-Companion-
Short Notes and GYAN SANGAM discussion forum.
Implementation of E-Security technology to be integrated
with drones piloted at Solar PV sites.
�
7. Knowledge Based Platforms
� Presence of group level knowledge-based platforms such as
IdeaLogy, Tata Edge and Tata Innovista.
for
in-house
portals
� Launched
knowledge-based
T P D D L‑ C O L L A B O R AT I V E J O U R N E Y
platforms such as:
− SHINERGY (platform for registering of improvement
projects)
− Gyan Sangam (repository for SEEKH sessions organised
throughout organisation)
− IMS Process Approval and Document Availability
− IMS and 6S Audit System
− Business Excellence Maturity Index
8. Advanced generation and technologies
� Rural microgrids with two pilot projects in Tayabpur and
Behlolpur villages of Vaishali District in Bihar to provide
affordable power and electricity access in rural areas,
funded by Tata Trusts and co-created by TPDDL with the
Massachusetts Institute of Technology
� 70 households in Tayabpur and 85 households in Behlolpur
given electricity connection through prepaid meters, in
different packages of 5/12/24 hours
100+
Collaboration
Partners
16
Global Funding
Agencies
59
24
Industries
Institutions
150+
Employee
Engagements
In order to cater to futuristic and emerging customer
requirements, TPDDL has partnered with technology providers,
research institutes and funding agencies to build a diverse
knowledge base of new products, services and solutions.
Collaborations have taken place under specified categories:
� Enhancing operational efficiency, especially at the
low tension level
� Development of low-cost and scalable solutions for
the power sector
� Employee development and engagement
� TPDDL branding
At TPDDL, we conduct pilots for establishing Proof of Concept
identified
(PoC) and validating the business case for all
opportunities. The pilots that present a business case are routed
through a regulatory approval process and scaled up after
obtaining concurrence.
Our other Digital Initiatives are described in Management
Discussion and Analysis (MD&A) (Page 192-193).
57
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Human Capital
Engaged, agile,
future ready
workforce
Once you got the best people, the people who shared our
values and ideals, we left them free to act on their own.
We do not fetter them. We encourage them and give
them opportunities for leadership.
J.R.D. Tata Chairman, Tata Sons (1938 – 1991)
Our employees are the primary enablers of our vision and are at the core
of achieving our organisational objectives. Their passion, dedication and
conscientious approach to work is at the crux of our organisational success
and operational excellence.
Our Human Resource strategy focuses on a shared journey that facilitates
continuous growth and development of each of our employees
towards achievement of their full potential and thereby enriching their
experience at Tata Power.
PE R FO R M A N C E H I G H L I G H T S
CO-CREATION
GYANKOSH
YOUTH POWER CONFLUENCE
Of HR policies based on
regular crystallisation of
feedback from employees
An e-learning platform for all
our employees to enable them
to learn at their own pace
For new entrants to showcase their talent and
accomplishments to fuel their growth in the Company
INCREASE IN EMPLOYEE
ENGAGEMENT SCORE IN FY20
Overall engagement score increased by 9% to 83% making our
score one of the best within the Industry as well as Tata Group
LEADERSHIP COMPETENCY
MODEL - ASPIRE-MOTIVATE-
PERFORM (AMP)
A competency building model to create a future ready workforce
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
SBO 7
Create an engaged, agile
and future ready workforce
� Human rights
� Training, education
and development
� Occupational health
and safety
� Workplace health
and safety
� Talent and
succession
� Work-life balance
� Appraisal and
promotion policy
� Remuneration
� Equal opportunities for all
I M PAC T O N OT H E R C A PI TA L S
Our performance in Human Capital has a significant influence across all other capitals.
Social & Relationship Capital
Impact
� Improved employee experience
through increased participation
in voluntary initiatives of Arpan
Natural Capital
Impact
� Increased awareness
and efforts towards
environmental conservation
through voluntary
employee participation
Financial Capital
Impact
� Investments made in
training and development
for knowledge and skill
enhancement of employees
Intellectual Capital
Impact
� Increased employee
participation at Tata
Innovation forums
� Establishment of innovative
technologies to ease
manual intervention in
system procedures
Human
Capital
Manufactured Capital
Impact
� Exceptional resilience of sites
to disasters with our Business
Continuity and Disaster
Management Plan (BCDMP)
� Timely and effective commissioning
of projects, sustained operation at
benchmark levels due to highly skilled
and competent workforce
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
58
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
59
Our Human Resource strategy
To enable employees to perform at their
full potential, it is imperative to create a
work environment that is collaborative,
enriching and
fosters a culture of
learning and growth.
Our HR strategy adopts a multipronged
approach touching seven key facets
that enable employee development and
organisational success.
n
u i s i t i o
t i o
n
e
n
c
q
e
t
t A
d R
a l e
T
n
n
a
Employee
Engagement
and
values
The alignment of our employees'
individual
aspirations
with the Company's ideals is a central
pivot that enables value generation
for our customers, the society and
the environment.
n
a
m
u
H
s
t
h
g
i
R
S
u
Human
Resource
Management
c
c
P
l
a
e
s
n
s
i
o
n
i
n
n
g
Diversity
H
e
S
a
a
l
t
f
e
h
t
a
y
n
d
Em ployee
Welfare
Employee Category
Senior Management
Middle Management
Junior Management
Workmen**
FDA and SE***
Total
Contractual Workers
Permanent Employees with Disabilities****
Tata Power’s workforce *
Tata Power's workforce FY20
Female
Male
Aged <30
years
Aged 30-50
years
Aged >50
years
18
60
741
66
49
934
555
3
353
1,048
4,222
1,844
212
7,679
20,350
29
0
3
1,370
118
137
1,628
N/A
N/A
137
748
2,914
1,062
113
4,974
N/A
N/A
234
357
679
730
11
2,011
N/A
N/A
Total
371
1,108
4,963
1,910
261
8,613
20,904
32
*NOTE: Includes only manpower numbers of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, SED, NELCO, TPDDL
**Workmen includes Non-Management Employees
***FDA and SE include employees and supervisory trainees on direct contract with the Company
****Number of permanent employees with disabilities is included in the total workforce strength
Employee Engagement at Tata Power
Platforms that enhance qualitative employee
engagement
Our work culture enables continuous dialogue with our
employees. We actively listen to their needs, aspirations
and ambitions, making their voices heard and their inputs
valued, and thereby facilitating an open channel for two
way communication. We consciously seek feedback on any
organisational changes and keep our employees adequately
informed to ensure smooth transition.
Unique appraisals for enhanced performance
Our Performance Management is a key talent management
process that drives a high performance culture and helps create
excellence by enabling achievement of organisational plans. All
our employees, across all levels, received regular performance
appraisal and feedback during the reporting period. The
process involves setting the individual’s Key Result Areas (KRAs),
which are cascaded from the strategic goals of the organisation,
cluster and divisions/ functions.
Competency building-AMP Model
We consider it equally critical to evaluate the potential of an
employee in his/her current role as well as future growth. We define
the Key Behavioural Attributes (KBAs) of an employee based on the
competencies identified in Tata Power’s new Leadership Competency
Model called AMP (Aspire-Motivate-Perform). Recognising the
need to evolve Tata Power’s own talent framework that is more fit-
for-purpose and more likely to address the business challenges, an
in-house exercise was undertaken wherein the competencies were
identified which were required for leaders to succeed in the future
in the context of Tata Power’s plans while retaining our core. The
leadership competency model is the outcome of such research
based approach involving the Board Members, MD, CFO and other
senior leaders. The AMP model is highly contextual to Tata Power
and is a mix of existing and future facing competencies.
Employee Engagement Survey
Integrating human inspiration with innovation
While we formally engage with our employees through the appraisal
process, we also encourage them to actively participate in the
forums of the Tata Group such as Tata Innoverse and Tata Innovista
(annual celebration of innovation in the Tata Group).
We also use various innovative strategies to engage with our
employees and support their growth within the Company. Some of
our key programmes are:
� Talent Next : Through this programme, high-performing officers
are given the opportunity to showcase their potential to the
management and thereby fast track their career progression
� Youth Power Confluence : Newly joined cadre/trainees can
showcase their talent and exceptional work through this platform
to fuel their growth in the Company
� Ullas: Through this cultural platform, we enable our employees
to showcase their talent
� Gyankosh: Tata Power’s e-learning platform provides
and development opportunities
learning
best-in-class
for employees
We also conduct an annual Employee Engagement Survey (EES)
to gain a clear understanding of various aspects of our workforce’s
functioning, the engagement level and areas of improvement in
work environment. The EES 2020 was conducted by a reputed
external partner, Kincentric and focused on understanding the role
of three key stakeholders in influencing the work experience-the
manager, the senior leadership and the HR. The survey saw a record
participation rate of 98% and increase in the overall engagement
score by a significant 9%.
� Town Hall: Organised regularly to facilitate conversation
between employees and senior leaders
� Employee Assistance Programme (EAP): Provides professional
counselling services such as 24/7 e-counselling, telephonic,
face-to-face counselling, wellness coaching, online health
risk assessment tools, self-help library/self-assessment tests,
e-workshops, among others. This programme also helps deal
with issues such as personal development, work, relationships
and marriage, parenting, physical and emotional wellness
60
61
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20
Talent acquisition and retention
Building and retaining strong employee skills
Technological disruptions are redefining work paradigms across industries. At Tata Power, we empower our employees with requisite
skill-sets to help them keep pace with these developments. We provide employees with various channels to express their creative
energies. While we provide avenues for employees to tap into their innate talents, we enable their growth and development in new
areas as well as invest in their health and safety. The training needs assessment and identification process for both functional and
behaviour skillsets factors in:
1. Business Strategy Plans
2. Individual Development Needs
and
are derived
development
Training
the
needs
organisation's
growth
plans, core competencies, emerging
competencies and thrust areas.
strategy,
from
the
encompasses
learning
This
needs of all employees which are
identified during the
'goal setting'
in consultation with their
exercise
ascertained
appraiser. Gaps
through
Competency
Assessment and development needs
are arrived at by the People Potential
Development System.
Functional
are
4. Succession Management
Development needs are identified for
successors (short/medium/long-term) to
ensure business continuity.
62
3. Focus Group Needs
Training needs are identified through
an ongoing dialogue between the
Capability Building Team, Business
HR Heads and HODs, which captures
emerging training and development
needs of a Department/Team. Career
level transition/
stage
linked (work
developmental
promotion/transfer)
for desired
needs are
employee
each
outcomes
transitioning to a new role.
identified
for
Our training modules and programmes
Training needs are also identified at the time of ‘goal setting’ during the appraisal process. Once identified, we impart training
and development through various modes such as internal training, external training, focused group training and support for
higher education.
9,950 MAN-HOURS
Tata Power covered 611 employees
through external training programmes
and dedicated man-hours
Our training modules cover:
1. Safety and job specific skills
2. Housekeeping
3. Contractor Safety Code of Conduct
4. CMG - documentation training
5. TCOC and POSH sessions
6. Protection and testing of electrical
equipment
7. IMS external audit, among others
During FY20, we also nominated
several employees for external training
programmes. These are either open public
institutions,
leading
programmes by
agencies,
seminars,
conferences,
certifications, or specialist programmes.
Nominees are shortlisted based on their
performance in the current role, identified
high potential performers,
identified
successors, technical specialists, etc.
Tata Power also supports
its officers
to pursue higher education to build
competencies and prepare them for
future roles, as per the Higher Education
Sponsorship Programme (HESP) policy.
The policy team publishes and updates
the list of courses at regular intervals.
to pursue
An officer may choose
higher education through one of the
following modes:
� Full time: Courses for up to two years
on study leave without pay
� Part time: Courses for a maximum
duration of three years
We have covered 142 employees since the
launch of this policy
Our Work Integrated Learning
collaboration
in
Programme
with
enables
Pilani
BITS
to get an
diploma-holders
In FY20,
engineering degree.
43 employees were covered
under this initiative.
Average hours of training per employee in FY20
Employee Category
Senior Management
Middle Management
Junior Management
Workmen
FDA
Contractual
All employees and
contractual workers
Male
Female
19.48
24.17
24.47
8.47
4.93
12.20
14.29
19.56
20.63
29.14
6.62
2.61
5.58
18.03
63
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Our permanent employees are also required to attend applicable trainings out of the following 13 Critical Safety Procedure
programmes which can be completed through e-learning or classroom-based training platforms.
Safety
Induction
Working
at Height
Procedure
Lockout and Tag
Out Procedure
Excavation Safety
(Shoring and
Sloping) Procedure
Confined Space
Entry Procedure
Scaffold Safety
Procedure
Work Permit
Procedure
Office
Safety
Defensive
Driving
Heavy Equipment
Movement Procedure
Mobile Crane
Safety Procedure
Job Safety Analysis
Procedure
Electrical Safety
Procedure
targets
for each of
For enhanced engagement with
safety-linked themes, we set safety-
related
the
operational sites and entrust the
responsibility of achieving them with
the top management of the site. This
infuses accountability in our safety
management system and encourages
managers to make dedicated efforts
to drive the safety agenda.
Permanent Employees
Safety Induction Training
Safety Capability Training
Casual/ Temporary/ Contractual Employees
Safety Induction Training
Safety Capability Training
9,744 man-hours
82,532 man-hours
5,82,644 man-hours
2,35,800 man-hours
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
Nurturing future leaders
In order to have a secure pipeline of leaders to guide the
Company towards further growth, we actively
in
providing dedicated training for leadership development. In
addition, we sponsor consistently high performing leaders
and managers in a critical role to open programmes at globally
recognised institutions such as Harvard, Wharton and INSEAD.
In FY20, we nominated one high performer for the Leadership
Vanguard – Exchange Programme with Xynteo Limited.
invest
We recognise that strong leadership acumen is imperative
for business success and strategic growth. Our HR team has
conceptualised, designed and launched interventions for Apex
and Senior leaders to enable them to achieve their full potential
fulfilling organisational objectives. Consequently,
towards
for top management and senior leaders an Integrated Senior
Leaders' Development Program (SLDP) has been designed
combining the "Advanced Management Program" at the Indian
Institute of Management, Ahmedabad with coaching journey
christened "mYCoach".
30 senior leaders participated in a customised
niche senior leaders’ development programme,
in FY20.
We have also devised a leadership development programme,
'Achieving Your Leadership Potential', in collaboration with the
Tata Management Training Centre (TMTC). Catering to our high
performance officers, this nine-day aspirational programme is
delivered in three modules of three days each, with six-week
gaps in between by the renowned faculty members of TMTC
using a blended learning pedagogy interspersed with action
learning projects, including case studies on existing challenges
of Tata Power. In FY20, two batches covering 43 participants
completed this programme. As a result of these programmes,
FY20 saw 96.6% retention of employees in the higher cadre.
Safety Linked Training
Every employee at Tata Power, is trained and empowered
to identify unsafe work environments and make proactive
decisions to avoid accidents. We have a strong safety capability
building process in place. Once we determine safety-linked
training needs, we prepare detailed plans at corporate and
divisional levels. Safety training is imparted through classrooms,
practical demonstrations and e-learning modules.
Our safety-linked training covers:
1. Employee Safety Induction programme
2. Risk exposure-based safety programmes (working at height,
electrical safety, lifting and slinging, etc.)
3. Behaviour-based safety programmes
4. General awareness programmes like firefighting, defensive
driving and office safety, among others
100%
of our contractual employees are trained on
various aspects of occupational safety
We train our employees to ensure they understand their rights
and embrace a proactive safety approach. This takes place
through the Tata Power Skill Development Institute (TPSDI)
as well as through online modules on safety standards and
procedures. The safety capability building of contract workers
is integrated in the Contract Safety Management Process.
They are trained during their induction and undergo specific
trainings based on their area of work. These trainings are also
conducted at the TPSDI with various levels of certifications
(L1, L2, L3) awarded at the end of the process. In addition to
certification training, prior to executing any job, ‘Toolbox Talk’
is conducted at the site through which work related risks and
adequate control measures are highlighted once again.
64
Future ready for smart choices
65
The Tata Power Company Limited Integrated Annual Report 2019-20
Our approach towards the protection of human rights
At Tata Power, we are committed to uphold the highest
standards of human rights aligned to our organisational ethos.
We have a dedicated Human Rights Policy, which is aligned to
the principles of the International Labour Organisation and
United Nations Global Compact.
We emphasise
� Prohibition of child labour
� Prohibition of forced labour
� Freedom of association and right to collective bargaining
� Protection from discrimination
We have a zero-tolerance policy towards child labour and forced
labour. Given our commitment to strictly prohibit child labour
and forced labour across the value chain, we have been able to
build our business in such a way that none of our operations
or suppliers breach this Company policy. It is our responsibility
to ensure an inclusive work environment where no employee
is discriminated on the basis of age, gender, marital status,
personal beliefs, religion and spiritual practices, political
affiliation, sexual orientation and HIV/AIDS, among other
distinctive individual attributes. We also have zero-tolerance
towards harassment of any form and in FY20 we addressed
all three cases registered for sexual harassment. Further, as of
FY20, 22.2% (workmen cadre) of our employees are covered by
collective bargaining agreements.
We sensitise our employees on various facets of human rights
protection, ensuring our vision for the protection of human
rights is realised each day at our workplace. The pre-induction
training and periodic refresher modules also cover the tenets of
soft skill ensuring conducive working conditions and protection
of human rights. We ensure that all our security personnel and
contractors adhere to the Tata Code of Conduct, which covers
detailed aspects of human rights. We have had no instance of
violation of any of the human rights and have not received any
complaints in this regard, which showcases our commitment
towards the protection of human rights.
Celebrating equality and diversity at our workforce
At Tata Power, we celebrate and strive to enhance the
diversity of our workforce. The unique blend of a multitude
of perspectives and aspirations is key to infusing operational
excellence in our service delivery. We are an equal opportunity
employer, and we base our decisions – from talent acquisition to
performance appraisal — exclusively on merit, competency and
potential. Our policies clearly communicate our commitment
to promoting diversity and equality in every aspect of work
spanning employment terms, training and performance
management. Further, our Gender Diversity and Inclusion Policy
empowers women by promoting an inclusive and inspiring
work environment.
66
Our Health and Wellness Policy covers an employee
and his or her close family, including support
for chronic illness.
We also provide various benefits to promote diversity. This
includes provisions to support employees at various stages of
life from higher education, marriage, child rearing preferences,
illness and old age. We started providing six months of maternity
leave even before it was mandated by law. This is a testament to
our organisational ethos of being inclusive and supportive to all
our employees' needs.
At Tata Power, we are committed to ensuring the all-round well-
being of employees. Our Health and Wellness Policy covers an
employee’s close family and includes support for chronic illness.
Our medical fund provides coverage for medical expenses
over and above the employee’s eligibility under the Mediclaim
scheme and is an industry benchmark for employee benefits.
20% WOMEN
TPDDL
leaders on our Board
has been recognised amongst
India’s Best Workplaces for
Women in FY20
*Employee category
Senior Management
Middle Management
Junior Management
Trainees
Ratio of basic salary of
women to men
Ratio of total remuneration
of women to men
1 : 1.02
1 : 0.91
1 : 1.11
1 : 1
1 : 1.06
1 : 0.92
1 : 1.12
1 : 1
*NOTE: Considers remuneration for employees of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR only
*Employee category
Senior Management
Middle Management
Junior Management
Trainees
*NOTE: Considers remuneration for employees of SED
*Employee category
Senior Management
Middle Management
Junior Management
Trainees
*NOTE: Considers remuneration for employees of NELCO
*Employee category
Senior Management
Middle Management
Junior Management
Trainees
*NOTE: Considers remuneration for employees of TPDDL
Ratio of basic salary of
women to men
Ratio of total remuneration
of women to men
1 : 34.90
1 : 15.20
1 : 5.92
1 : 4.0
1 : 38.03
1 : 15.26
1 : 5.91
1 : 4.0
Ratio of basic salary of
women to men
Ratio of total remuneration
of women to men
1 : 21
1 : 11
1 : 06
N/A
1 : 21
1 : 13
1 : 05
N/A
Ratio of basic salary of
women to men
Ratio of total remuneration
of women to men
1 : 1.02
1 : 1.10
1 : 1.16
1 : 1
1 : 0.94
1 : 1.16
1 : 1.18
1 : 1
Employee Category
FY20 Attrition
Female
Male
<30
30-50
>50
Total
Senior Management
Middle Management
Junior Management
Workmen
FDA
Total
2
2
83
0
1
88
11
45
220
5
16
297
0
0
194
3
10
207
7
38
106
2
6
159
6
9
3
0
1
19
*NOTE: Includes attrition numbers of Tata Power, TPREL, CGPL, TPSSL, TPRMG, PTL, WREL, MPL, IEL, TPTCL, TPADL, TERPL, TPCDT, FENR, NELCO, TPDDL, SED
13
47
303
5
17
385
67
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Safety First: Our Approach to Achieving Safety Excellence
At Tata Power, we believe good health and safety of our people is
one of our biggest assets. We strive to safeguard the health and
safety of all our stakeholders, including employees, contractors,
suppliers and partners who help us realise our organisational
goal of excellence in service delivery. We adopt a proactive and
pre-emptive approach to occupational health and safety within
the organisation.
We have mandated use of Personal Protective Equipment (PPE)
for all types of operations and maintenance jobs for Generation,
Transmission and Distribution utilities. We embrace a beyond-
the-curve approach to ensure that we are not just aligned to
global best practices but also innovate and ideate to set new
benchmarks through our safety-centric culture. We strive to
achieve a track record of zero injuries and fatalities. Moreover,
we ensure that each employee actively imbibes those safety-
linked practices.
We have designed a programmatic approach with three key
focus areas: organisation and culture, systems and processes,
and equipment and facilities. This approach anchors our
operational philosophy of “No Harm/No Injuries”. We have
aligned all our operations to international safety standards
and procedures and have a safety management system that
identifies hazards, monitors safety
incidents and devises
corrective strategies. We have also established a Business
Continuity and Disaster Management Plan (BCDMP) to make
our sites resilient to natural and manmade disasters. Further,
we have a Consequence Management Policy that sets out the
general approach to managing safety deviations and establishes
processes for corrective counselling.
standard operating procedures and
systems are
Our
continuously reviewed to enhance their robustness and ensure
all our contract workers and suppliers are in compliance with
our operational principles of safety. We have designated safety
officers, first aid personnel and emergency response teams for
each operational site to effectively tackle any adversity. Further
aligned to the Indian Factories Act, each operational site has a
Central Safety Committee with representation from the major
departments. These departments further have divisional sub-
committees with representation from the workers.
ORGANISATION AND CULTURE
"Be Proactive, Be Safe"
SYSTEMS AND PROCESSES
Tata Power is the first TATA group company to implement
the SAP-EHSM platform for Incident reporting
S A F E T Y V I S I O N
To be a leader in Safety Excellence in the global
power and energy business
EQUIPMENT AND FACILITIES
Adequate supply of Personal Protective Equipments
and robust operations and maintenance practices
Monitoring Our Safety Performance
Close monitoring of our safety performance has helped our safety procedures evolve
over the years. Through effective monitoring, we have been able to identify hazard
hotspots and avenues for improvement. To monitor safety-linked performance, we
maintain records of safety-linked training and incident dashboards. These records are
reviewed periodically at the cluster level and by the corporate Employee Health and
Safety (EHS) team. All reported incidents are thoroughly investigated using root cause
analysis. For high potential, high severity incidents and near-misses, a cross-functional
team is formed to investigate causes and identify suitable corrective and preventive
actions to avoid recurrence.
Our Suraksha mobile app is one
such intervention that enables
employees
conveniently
to
report unsafe conditions.
Description
Injuries
Occupational disease cases
Lost days
Man-Hours worked
Fatalities
Description
Injury rate
Occupational disease rate
Lost day rate
Description
Injuries
Occupational disease cases
Lost days
Man-Hours worked
Fatalities
Description
Injury rate
Occupational disease rate
Lost day rate
Key safety-linked metrics (permanent employees)
Male Employees
Female Employees
2
0
68
16,261,937
0
Key safety-linked metrics (permanent employees)
Unit
per 100 workforce
per 100 workforce
per 100 workforce
0
0
0
1,774,997
0
Total
0.11
0.00
3.77
Key safety-linked metrics (contract employees)
Male Employees
Female Employees
6
0
385
48,138,020
0
Key safety-linked metrics (contract employees)
Unit
per 100 workforce
per 100 workforce
per 100 workforce
0
0
0
3,450,566
0
Total
0.12
0.00
7.46
We have adopted a SAP-EHSM platform to enable effective incident reporting and investigation. This platform also provides details
of audits and inspections. We have developed various innovative means to make it easier for employees to grasp the concepts
of a proactive safety approach and participate in the Company’s safety-linked endeavours. In addition, we have digitalised and
consolidated our safety management system into a centralised safety communication system and dashboard that showcases
KPIs. We have an online Fire Preparedness Index (FPI) that enables communication, monitoring, reviewing and decision-making
around fire safety.
68
The Tata Power Company Limited Integrated Annual Report 2019-20
69
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices Social and Relationship Capital
Strengthening our
communities to build
sustainable societies
In line with the Tata group ethos, we, at Tata Power, believe
in improving the quality of life of our communities and
being a neighbour of choice by implementing strategic
CSR initiatives.
Mr. Praveer Sinha, CEO and MD
At Tata Power, we recognise our responsibility towards people and the
planet, and thus strive to create long-term social and economic value. This
commitment is aligned with the nature of our business and strategy to drive
sustainable growth for our customers, suppliers and local communities.
PE R FO R M A N C E H I G H L I G H T S
90%
98%
CSAT score, Mumbai
Distribution, for FY20
CSAT score, Mumbai
Transmission, for FY20
27.10 LAKH
Beneficiaries covered at Tata
Power group level, as against
annual target of 22.90 lakh
348
Villages covered
under CSR outreach
220
Urban clusters, in 16
states, covered under
CSR outreach
D 39.97 CRORE
Spent on CSR initiatives in FY20 on
a consolidated basis
EXCELLENCE
IN TRAINING &
DEVELOPMENT
TPSDI honoured at the
6th Global Training &
Development Leadership
Awards
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
� Customer relationship
� Demand side
management
� Cyber security
and Data Privacy
� Climate Change
SBO 4
Focus on sustainability
with an intent to attain
carbon neutrality
SBO 5
Building a customer-
centric organisation
SBO 6
Leveraging digital
technology to enhance
business delivery
� Quality and reliability
of power supply
� Improved notifications
of disruptions, failures or
maintenance ensuring
customer satisfaction
� Formal supplier assessment
to verify ESG performance
� Increased awareness for
partnering in "Green"
initiatives
� Ethical business practices
� Community involvement
� Transparency in
business practices
� Enhancement of
infrastructure for training
community members
� Safety and security of facilities
as well as electricity supply
I M PAC T O N OT H E R C A PI TA L S
Our performance in Social and Relationship Capital has a significant influence across all other capitals.
Natural Capital
Impact
� Reduction in emissions due
to successful demand side
management initiatives
� Voluntary initiatives leading
to improved biodiversity and
reduction in waste
Intellectual Capital
Impact
� Focus areas for technology
development and
service improvement
� Cutting-edge energy
efficient technologies and
“Be Green” initiatives
Financial Capital
Impact
� Increased customer loyalty
leading to enhanced business
opportunities and revenues
� Goodwill among communities
around areas of operations
increasing viability of project,
leading to better financing terms
Manufactured Capital
Impact
� Better customer insights to
guide improvements in business
efficiency and service offerings
� Social licence to build, own
and operate new projects
leveraging on goodwill built
among communities and the
Tata brand image
Social and
Relationship
Capital
Human Capital
Impact
� Enhanced employee experience
through increased participation
in voluntary initiatives
70
70
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
71
71
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Tata Power’s customer relationship
Relationships with our customers play a crucial role in our value-creation journey. The focus of our operations
revolves around our statement, “To earn the affection of customers by delivering superior value and superior
experience, thereby making them our ambassadors”.
We also have a 3D approach to incorporate our ‘Customer Promise’, which is communicated through our
Corporate Customer Service Policy. This resonates with our commitment to continuously exceed customer
expectations and be the most admired organisation in the power sector.
E X TE RNAL LINK | More about Corporate Customer Service Policy
Our 3D approach to inculcate ‘customer promise’
Develop
Deliver
Delight
Insights into customer needs
Quality products and services
Customers with great experience
Developing insights into customer needs
Caring for our customers
We conduct Customer Satisfaction Surveys to systematically
measure the satisfaction and dissatisfaction levels of our
customers. These surveys are conducted through a third-party
market research agency annually across all customer segments,
i.e., commercial, industrial and residential. Feedback is captured
in detail, collated, analysed and shared with respective Business
Heads for implementation to enhance customer satisfaction.
Furthermore, this process also enables us to capture customer
satisfaction levels on our value-added services like energy
conservation measures, energy audits, safety audits, and
demand responses. We arrive at our CSAT score by calculating
the percentage of customers rating us 2 or higher (on a
5-point scale).
Caring for our customers is engrained in our DNA and forms a
bedrock of all our business endeavor. It starts with addressing
our customers’ data privacy concerns. We have a privacy
policy (https://www.tatapower.com/)
in place to address
concerns about data storage and outline the measures taken
to safeguard our customer information. Customers can also
submit their complaints or concerns regarding data privacy
through our various grievance redressal channels, which are
regularly monitored. During the reporting period, we did not
receive any complaints regarding customer privacy breach, or
leak, theft or loss of customer data.
Improving CSAT scores
across clusters
Our satisfaction score has improved
last year due
significantly from
to targeted
initiatives taken by
the organisation
Mumbai Distribution
FY20
FY19
90%
89%
Mumbai Transmission
FY20
FY19
TPREL
FY20
FY19
TPDDL
FY20
FY19
98%
85%
87%
82%
95%
94%
Average
FY20
FY19
92.5%
87.5%
We also conduct mandatory annual health check ups. In
addition, we ensure health and safety communication for 100%
of our products and services through safety signage in and
around our substations in customer premises and public places
as a continuous procedure.
All our product and service categories are assessed for health
and safety impacts across the lifecycle of electricity supply
from generation to distribution. Safety signages are displayed
at prominent locations, including the sub-stations. We also
provide appropriate information to market and label our
products and services with relevant regulations, laws and codes.
For FY20, there have been no incidents of non-compliance with
regulations or voluntary codes concerning product information
and labelling as well as marketing communication.
Valuing Health and Safety of Our Customers
With Safety being one of our core ‘SCALE’ values, we extend
our value-added services to our key customers to improve their
health and well-being as well as create awareness on safety at
the workplace. We conducted a safety training for 13 technicians
of CRISIL to improve safety skills and practices.
We organised a medical camp at the Vitrum Glass Factory, where
105 employees availed medical check-ups and consultation.
The camp was customised to include Lung Function Tests
specifically for workmen in the glass factory. A similar camp was
organised for 85 personnel of Supreme Housing & Hospitality, in
association with L. H. Hiranandani Hospital and Titan Eye Plus in
Powai. The camps also included additional tests in consultation
with doctors for specific ailments.
72
73
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 We earn the affection of customers
by delivering superior value and
superior experience, thereby making
them our ambassadors.
Deliver quality products and services
In order to enhance value creation with our customers, we are
transitioning from a B2B or a B2G towards a B2C enterprise.
With unique differentiation as well as value-added services, B2C
businesses will enable direct interaction with our customers.
Working with customers to improve product
and service delivery
We customise our product and service delivery according to
customer needs (e.g., built an aesthetic substation aligned with
the design and architecture of the Mumbai International Airport)
and offer customers a combination of power supply sources to
minimise costs (e.g., providing solar rooftop EPC solutions to
customers who draw power from the distribution grid), among
others. We have also created a WhatsApp group with other
utilities to swiftly communicate faults and outages.
During our interactions with customers, the key issues raised
were voltage fluctuations for HV customers, higher tariff and
reliability, as well as power quality. Accordingly, technical
solutions based on a study conducted by IIT, Mumbai
were implemented to reduce voltage fluctuations. We also
implemented measures to reduce cost, which was reflected in
the reduced tariff in the Multi-Year Tariff (MYT) proposal.
Our initiatives to improve product and service delivery
Issues/Concerns
Initiatives
Network reliability
� Implemented auto reclosing of high voltage transmission lines with protection modification
� Commissioned two 220 kV lines for interconnecting with Adani Electricity Mumbai Limited,
in order to improve reliability of power supply to customers fed from Versova and Malad Receiving
Stations
Availability of lines
� Implemented hot line working and carried out hot line washing
Tripping of transmission
lines due to bird hits
Failures and tripping of
lines; quality of power
� A remote operation of line isolators carried out from SCADA to reduce outage time
� Commissioning of new 220 kV Gas Insulated Switchgear at Versova Receiving Station and 125 MVA
Transformer at Mahalaxmi Receiving Station to meet load growth
� 3,000 bird-repelling contraptions installed on transmission towers
� Ensured line patrolling, thermal vision scanning and sensitisation of people regarding hazards due
to high voltage transmission lines
� Replaced old insulators
� Implemented systems to reduce fault level and impact of voltage fluctuations at six
Receiving Stations
� Old 220 kV Gas Insulated Switchgear at Carnac and Borivali have been replaced with new Gas
Insulated Switchgears
Voltage fluctuations
� Capacitor banks were added at four Receiving Stations
Clearances at metro
crossings
Electrical safety
awareness among
communities
� For Mumbai’s Metro 2A project, installed 18 monopoles for 110 kV Borivali- Malad lines
� Tata Power collaborated with SAAD (Social Awareness Advocacy & Development) Foundation as a
part of its 'Ghar Ghar Me Jan Jagruti Abhiyan' which involves street plays and interaction with the
people in Mumbai, Maharashtra. The initiative aims to sensitise the community about the adoption
of safety measures to be taken in the vicinity of transmission lines
� It also stressed upon the importance of using ISI marked electrical equipment, among others
74
74
The Tata Power Company Limited Integrated Annual Report 2019-20
75
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Nurturing relationships through transformation
In our constant endeavour to transform the power sector, we aim to build our
service business comprising distribution, rooftop, microgrids and solar pumps.
We have launched several value-added services to improve energy efficiency and
drive our sustainability objectives.
EV Charging
We have made significant impact in developing the EV ecosystem
and encouraging EV adoption in India. We are committed to
playing a key role in the nation’s transition to electric mobility.
In FY20, we partnered with Tata Motors and JLR for developing EV
charging infrastructure for their customers and dealers, present
in 20 cities across India. In FY20, we launched the Beta version of
our software platform and mobile app which enable customers to
locate EV charging stations, charge EVs and make bill payments.
As on 31st March, 2020 we have installed 170 EV charging points in
20 cities. We expect to expand our network of EV charging points
to 700 by 2021.
ESCO
With the accreditation of Grade 1 ESCO by the Bureau of Energy
Efficiency, Government of India, we have been providing energy
services for more than 10 years to the Commercial, MSME and
Industrial segments. In addition to enabling customers to lower
their energy consumption, we provide an entire range of energy
efficiency services – from investment grade energy audit to
project management, financial support and operation of energy
conservation measures.
This aids our strategy to reduce wastage of energy, ensure cost
efficiency for our consumers by leveraging analytics, Internet of
things (IoT) and installing energy-efficient systems such as Waste
Heat Recovery. The ESCO vertical also helps to substantially reduce
carbon footprint.
Home Automation
Even with arrangements in place for adequate power, balancing the
increasing gap between base load and peak load is very challenging
for Discoms. The availability of power is uncertain due to the lack
of fuel resources or congestion of the transmission network. This
also results in tariff increase for customers to offset higher power
purchase cost. To address this problem, we offer an IoT-based
Demand Side Management (DSM) solution to both Discoms and
customers for efficient management of electricity demand.
Our home automation business encourages customers to
implement efficient and cost-effective solutions to minimise
electricity consumption. We plan to launch the business in Delhi
and Mumbai, starting with IoT devices for remote control and
monitoring of home appliances like lights, fans, ACs, geysers, etc.,
through our mobile app, ‘EZ Home’.
Rooftop Solar and Other Customised Solutions
TPSSL, our solar manufacturing unit, expanded its Rooftop Solar
portfolio to 421 MW as on 31st March 2020. We have undertaken
awareness campaigns and influencer programmes, and have
strengthened our digital presence to expand our outreach and
Channel Partner Network.
We have also offered other customised solutions to utilise space
to generate solar energy. One case in point is our panels on the
facades of Dell building in Bengaluru.
Our ‘100 city Rooftop Awareness Campaign’ initiated in FY19
aimed to cover 101 cities across Tier I, Tier II and Tier III with a focus
on the residential segment. By FY20, we have covered around
94 cities. This campaign creates awareness among customers
about the benefits of solar rooftop solutions, leading to greater
savings and earning opportunities for customers from idle rooftop
spaces. Financing for residential and MSME customers, launch of
off-grid products, I-Taps and Floating Solar plants are some of the
services we provide. These services also aim to address myriad
challenges such as ease of availability, connecting remote areas
and unreliable grid connectivity, addressing customer complaints,
and generating cost-effective energy. Digitisation and customer
satisfaction are at the core of our activities in this business.
Our influencer programme has identified 500+ influencers pan-
India for reaching out to a larger population base. We also initiated
engagement with State Association of Electrical Contractors to
get more relevant people in the programme in order to spread
the message on Green Energy effectively.
Microgrids
In India, as on date, around 300 microgrids provide reliable services to
rural consumers at affordable costs. At present, the cost of electricity
from microgrids is lower than that from DG sets or other alternative
sources. With economies of scale, the cost could further reduce,
resulting in significant financial benefits for MSME and commercial
customers. Rural micro-enterprises like agricultural services, rice
husk mills, oil expellers can benefit substantially through reliable
and economical supply in this route. Our short-term objective is to
strengthen the microgrid and distribution network infrastructure to
provide reliable, quality and affordable supply to rural customers.
This would augment accessibility for millions.
The long-term objective is to create an entire ecosystem to eliminate
energy poverty and drive economic development of the community.
This is also in sync with the Government of India's continued thrust
on providing electricity to rural areas, unlocking the potential of
renewable microgrids to serve households and businesses that
suffer from inadequate reliability and coverage through traditional
grid-based power.
76
77
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Benefits across domains
Customers
Utility
Social
Reduces energy expenditure
Reduces cost of service
Conserves resources
Improves productivity
Improves operational efficiency
Reduces environmental degradation
Meets electricity demand
Improves customer service
Maximises customer welfare
Improves value of service
Improves value of service
Mitigates climate change impact
Encourages safe behaviour
Reduces capital needs
Under the ‘Be Green’ initiative, we offer Mumbai customers
an opportunity to purchase energy-efficient appliances
at a discount along with extended warranty and doorstep
delivery. More than 8,700 such appliances were provided to
consumers in FY20 with the Maharashtra Electricity Regulatory
Commission (MERC)-approved rebate of ₹ 85 lakh. This led to
cumulative energy savings of more than 6,000 MWh.
Additionally, 93 customer-owned rooftop solar plants, with
5.4 MWp capacity, were integrated with the grid. For bulk
consumers, energy audits are carried out by the Bureau
of Energy Efficiency (BEE) accredited auditors to provide
actionable recommendations for energy savings. For FY20,
energy saving recommendations of more than 3,900 MWh
were provided with MERC-approved rebate of ₹ 12 lakh.
D 12 LAKH
MERC-approved rebate as a result of
giving energy saving recommendations
of more than 3,900 MWh in FY20
Demand side management
Tata Power is a torchbearer in propagating energy conservation
and efficiency, which results in substantial benefits for customers.
To optimise utilisation of services provided, we proactively engage
in Demand Side Management (DSM) initiatives. Together with
the utility and customers, along with energy service companies
or trade allies, we explore options to increase efficiency of
energy utilisation and provide support for
implementing
appropriate solutions.
Our DSM initiatives
� DSM appliances programme (ceiling fans/ split ACs/
refrigerators/ LED tube lights)
� DSM energy audit programme
� Net metering facility for customers with installed
Rooftop Solar PV in their premises (within the
regulatory framework)
� Safety awareness programmes
78
79
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Delight customers with a great experience
Customer engagement and feedback
At Tata Power, we have numerous touchpoints for customers to
raise their queries and concerns as well as a structured process of
tracking complaints and ensuring resolution within pre-defined
timelines. A mechanism of obtaining feedback post-transaction
and upon complaint closure has also been established.
Our systematic complaint management process ensures that
corrective action is taken on priority basis and the complaint is
resolved within 24 hours.
We also have an Internal Grievance Redressal Cell, which
can be approached
if the customer finds the resolution
unsatisfactory through the regular channels. All complaints are
captured in the SAP-CRM system and are routed to appropriate
departments for resolution. The stages of the complaint are also
monitored with automated system generated reminders and
escalation mechanisms. As of 31st March 2020, there were no
customer complaints or consumer cases pending beyond the
turnaround time.
Our Customer Engagement Platforms
� Customer Relation Centre
(24/7 support):
List
https://cp.tatapower.com/sap/
b c /u i 5 _ u i 5/s a p / z t a t a p o w e r s e r v/ i n d e x . h t m l #/
Writetocustomercare/CP
available
(CRC)
on
� Email: customercare@tatapower.com
� Customer Web Portal: https://cp.tatapower.com/sap/
bc/ui5_ui5/sap/ztatapowerserv/index.html
� Customer Support Chatbot: https://cp.tatapower.com/
� Call Centre: 1800-209-5161 / 19123 (Short Code for
Mumbai Consumers)
� Mobile App: Android: https://apps.apple.com/in/app/
tata-power-mumbai-app/id1479983897
https://play.google.com/store/apps/details?id=com.
tatapower.cp.fiori
� SMS: Send NS<12 digit Consumer No> to 9223170707;
Few more Commercial in nature services available.
� WhatsApp: 7045116237
� Twitter: https://twitter.com/TataPower
� Facebook: https://www.facebook.com/tatapower/
� Communication by letter: Dharavi Receiving Station, Near
Shalimar Industrial Estate, Matunga, Mumbai 400 019
� Microsoft Kaizala: https://aka.ms/tatapower
Customer-centric technology development
Innovation and digitalisation are vital to sustainable growth in
the power sector as well as to address our customers’ key issues
and challenges. Technology also provides us a competitive edge
by integrating customer centricity in our business activities.
From this perspective, we have developed and implemented
various initiatives.
Revamped
Customer Portal
Power Rewards
VoiceBOT TINA
E-Payment
All Women Customer
Relations Centre
WhatsApp Service
E-NACH
Know Your Energy
Consumption (KYEC)
Mobile Application
QR Code
E-Wallets
Strategic partnerships with our suppliers
Our Responsible Supply Chain Management (RSCM) Policy (https://www.tatapower.com/corporate/policies.aspx) is an important
indicator of our commitment to sustainable and responsible growth. It is another indicator of our commitment to uphold key ESG
parameters while striving for sustainable and responsible growth. Our suppliers and contractors, both domestic and international, are
required to comply with the RSCM policy, covering Environment, Health & Safety, Human Rights, and Ethics & Compliance parameters.
We ensure that they adhere to our policies on emission, environmental regulations, provisioning a safe and healthy work environment,
and prohibiting child labour, among others.
The Tata Code of Conduct also covers our relationships with our stakeholders, including our suppliers. It acts as a guiding principle
ensuring fair and transparent selection of suppliers and the criteria that govern their selection. Supply chain management at Tata
Power is also governed by a procurement policy which caters to multiple business requirements.
These processes are implemented by distinctive structuring of verticals for Fuel Sourcing, Material & Services Procurement, Material
Management and Inventory Management. We follow a stringent selection process of business associates based on credentials and
past services and/or material quality. For FY20, there were no significant changes to the organisation’s size, structure, ownership
or supply chain.
Our supplier screening/assessment process
We, at Tata Power, recognise that our customers, employees
and partners have a subsequent impact on the environment
and community. Our ESG evaluation ensures that our suppliers
endorse the need for adherence to environmental, social and
governance policies that are also consistent with the values of
Tata Power. In order to implement this, we make sure that our
vendors/contractors/suppliers are on the same platform and
undertake sustainable practices in their business activities.
Vendors are assessed based on specific ESG parameters with
a preferred above average score greater than 50 eligible
for onboarding. For FY20, 100% of our new suppliers, with
a purchase order (PO) value above ₹ 5 crore were screened
through these ESG criteria. These vendors represent 83% of the
total value of POs issued in FY20. None of the suppliers were
found to have significant actual and/or potential negative
social impacts .
Sustainable and local sourcing
Tata Power practises responsible sourcing with respect to
environment, safety, human rights and ethics, apart from
economic considerations. Strict conformation
labour
principles and related laws are mandatory requirements for
all our suppliers to qualify. Work method and standards, along
with performance of supply and services, form a critical part
of our technical evaluation. In addition, safety evaluation and
qualification are an integral part for the award and online
vendor registration process.
to
We also take initiatives to enhance skill and capacity
development of the local workforce and community that
are present in our supply chain. For example, the contract
workforce is trained at TPSDI on multiple industrial vocations
and safety aspects to enhance their skill and efficiency in work
practices. We thus contribute to the capability building of our
contractors and their workforce, so that they are adequately
trained to safely perform the job along with a higher level of
productivity and quality standards.
As part of our Affirmative Action (AA), we ensure inclusion of
vendors from SC/ST communities in business opportunities,
which is driven by the Corporate Contracts department with
a single point of contact at the corporate level as well as
division/site level. The AA process for vendor enlistment and
ordering was primarily deployed to encourage and evolve
entrepreneurship skill among the communities and enable
them to be part of the ecosystem.
22,858
TPSDI trainees in FY20, with 2,113 unemployed youth, of
which 38.6% were from SC/ST communities; 91% of the
eligible youth were provided employment opportunities
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
80
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
81
Strengthening our communities
to build sustainable societies
At Tata Power, we have always undertaken initiatives with an aim to improve the quality of
life and ensure holistic development of our surrounding communities. Our initiatives focus
on diverse, community-based projects and interventions in our effort to build a better
and sustainable society through the Tata Power Community Development Trust (TPCDT).
Our primary goal is to transform the lives of the community through a result-oriented
participatory approach. The Company's programmes and impact assessments are guided
by our core CSR strategic objectives of:
Alignment and action
on UNSDG
(1, 2, 3, 4, 6, 8)
Encouraging employees
to commit 15 hours of
volunteering per year
Excellence in programme
management leading to
sustainable interventions
Learning and
benchmarking for
driving positive
outcomes
Fostering sustainable
partnership with civil
societies, corporates,
governments and academia
Focus on Affirmative
Action to cover at
least 30% of overall
beneficiaries’ coverage
O U R C S R V I S I O N
To make Tata Power the neighbour
of choice of communities and
earning the right to co-exist and
co-create by working jointly for
social well-being and improvement
in quality of life.
At Tata Power Group
level,
₹ 39.97 crore was spent in FY20
against annual CSR obligation of
₹ 33.30 crore.
Contributing towards building a sustainable society
Thrust areas
CSR Mission 2025
Financial Inclusivity
� 100% coverage of marginalised and
deprived communities to access
government entitlements and schemes
Programmes
ADHIKAAR
Education
� 100% enrolment and zero dropout up
VIDYA
to secondary level
� At least 80% academic performance
� 100% villages open defecation free
with access to basic sanitation
� 100% immunisation and
institutional delivery
� 100% access to safe drinking water
and irrigation (tanker free villages)
� Increase in ground water level to
ensure water availability
MAMTA
SAMMAAN
AMRUTDHARA
� At least 80% youth gainfully engaged/
placed to address migration
� Achieve 5x daily per capita income
($10 against SDG target of $2)
DHAAGA
ABHA
ROSHNI
DAKSH
Health and Sanitation
Water
Livelihood
and Skill-Building
82
Tata Power’s CSR programmes and impact assessments
Our Corporate Social Responsibility policy guides our CSR activities. Feedback on our
CSR programmes are incorporated through independent monitoring and evaluation
frameworks that have been adopted to ensure refinement of our initiatives. The
overall impact of our CSR initiatives is measured through the Community Engagement
Index (CEI) tool, which is used to determine engagement levels of various stakeholders
across the stages of CSR intervention. The CEI survey conducted in FY19 showed 84%
achievement against the score of 82% in the previous year. Additionally, we have
also conducted an Independent Social Return on Investment study for three flagship
initiatives, and year-on-year trend analysis indicated an increase in return by ₹ 5.04
on every rupee spent (70% improvement on y-o-y basis). The methodology used was
based on the global framework of Social Value – The SROI Network, UK.
Our CSR initiatives are categorised into five thrust areas through which we also aim
to improve the quality of life at the household level. These programmes reach out to
27.10 lakh beneficiaries across 348 villages and 220 urban clusters spanning 15 states.
We focus on achieving synergy, scale and simplification for process improvements.
We at Tata Power ensure that all
our community development
projects work with the concept
of ‘Leadership with Care’ at our
heart, which translates as ‘Care
for Community’.
83
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Our CSR initiatives are categorised into five thrust
areas through which we also aim to improve the
quality of life at the household level. We focus
on achieving synergy, scale and simplification
for process improvements.
Financial inclusivity: ADHIKAAR
Financial inclusion forms an essential aspect of our vision to
augment inclusive growth. The initiatives under this thrust
area are aligned with various government schemes for
benefits towards communities below poverty line (BPL).
The Adhikaar programme is an interlinked socio-economic
and scheme-based initiative that aims to inform, enable and
empower marginalised communities. The programme also
involves self-help groups (SHGs).
B E N E F I T S
3.12 LAKH
Beneficiaries in FY20
84
Education: VIDYA
For FY20, our first objective was to encourage enrolment and
increase our reach to rural and urban schools in locations
and communities near our operations.
Our second objective aimed to control and, improve the
quality of academics in rural and urban schools, primarily
in slum areas and locations of our operations. To ensure
qualitative implementation of our initiatives, our projects
are partnered with various NGOs that work on interventions
in this area. Our employees also participate in numerous
projects and interventions.
Under this thrust area, our initiatives include:
� Digital learning
� Teachers’ training
� Academic coaching and counselling up to primary level
� Stakeholder sensitisation
The Vidya initiative focuses on remedial coaching for school
children as well as digital education and training of teachers.
This has also strengthened the transformation of school
management committees.
APP-BASED
Learning
B E N E F I T S
60%
Improvement in
academic performance
2.68 LAKH
Beneficiaries in
Education in FY20
Case Study of Tata Power’s Education Impact
Amit saw something interesting happening in 8th grade.
One of Tata Power’s volunteers was teaching electrical
circuits. He listened to the entire session, and during
class break, requested the resource person to explain
it to him again.
After a month, he came up with a speed boat that runs on a
motor and uses a plastic bottle head as its propeller.
85
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Health and Sanitation: MAMTA & SAMMAAN
We, at Tata Power, aim to improve the level of immunisation,
improve access
increase health awareness as well as
to government health services. Our initiatives are carried
forward through partnerships with NGOs and government
health machineries for communicating behavioural change,
community mobilisation and spreading awareness on mother
and child healthcare.
Under this thrust area, our initiatives include:
� MAMTA – Maternal and child health
� SAMMAAN – Health and sanitation
Tata Power was recognised for promoting maternal and child
health initiatives as part of the World Breastfeeding Week
(August 2019) by the World Agency on Breastfeeding Alliance
(WABA). We also observed the National Nutrition Week across
locations at Anganwadi centres for promoting local food models.
B E N E F I T S
12,000+
5.41 LAKH
Sanitation units (household
toilets) built through
government partnership;
behaviour change
communication sessions held
for usage
Beneficiaries under Behavior
Change Communication (BCC)
maternal and child health and
integrated health care
Community Led Total Sanitation (CLTS)
CLTS is a behavioural change programme that follows an
integrated approach to enabling and sustaining an open
defecation free (ODF) status in villages. It focuses on behavioural
change and community mobilisation, rather than on hardware/
monetary support/subsidy approach. It brings about a change in
the community thought process to analyse their sanitation and
waste situation to influence collective decision-making and stop
open defecation. Awareness is increased through sensitisation
and strong messages on the negative outcomes and ill impacts
of open defecation and unhygienic living conditions. This is
communicated through art, street plays, storytelling as well as
capacity building for masons.
Water: AMRUTDHARA
Tata Power aims to improve service delivery through integrated
development of water conservation. Our initiatives include
innovation in irrigation practices across the farming sector
as well as sustainable drinking water management systems.
Water initiatives are often carried out through partnerships with
various government schemes, thereby increasing our reach.
Our CSR programme has adopted a dual approach to address
water availability for drinking and household purposes. It also
aims to undertake demand and supply-side management for
agriculture through Participatory Ground Water Management
(PGWM) and efficient use of water through
innovative
conservation techniques.
The PGWM system deals with water management and supply
with programmes to harvest rainwater and maintain water
level, which is scaled across eight locations in seven states. We
utilised funds worth ₹ 2.5 crore from NABARD and Win Watsan
Foundation to demonstrate PGWM at the Kankavati Sandstone
Aquifer of coastal Kutch in collaboration with ACT, Coastal
Gujarat Power Limited (CGPL), and Geo Science Services (GSS).
B E N E F I T S
32.59 LAKH
11.85 LAKH
Cubic metres increase in ground
water through recharging
techniques
Beneficiaries covered under
PGWM and drinking water
initiatives
INCREASED
STRATEGIC
Community and youth
knowledge of geo-
hydrological knowhow
Use of water by farmers with
a strong scientific basis and
ecologically sensitive methods
PGWM
Won Bronze medal in Asian Customer
Engagement Forum (ACEF)
CSR excellence Award in 2019
Case study of transformation
Water initiatives at Ahmednagar resulted in sustainable
impact and ground water availability enhancement
in collaboration with NABARD funding of ₹ 1.25 crore
for four years.
The impact and benefit spanned four villages of Agadgaon,
Devgaon, Ranjni, and Mehekari. Water availability was
ensured throughout the year to make tanker free villages
and 250 hectares of land was covered as catchment area.
86
87
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Livelihood and skill-building
Our objectives under this programme include microenterprise-
based capacity building initiatives, income generation training
for women, and
income generation for self-help groups
(SHGs). Another important aspect is imparting and facilitating
vocational skills and training to youth as well as building social
development and leadership skills among women on various
governance aspects. We have taken a collaborative approach
with our partners to help augment income generation.
B E N E F I T S
1.63 LAKH
Beneficiaries as part of our
outreach in FY20
Under this thrust area, our initiatives include:
� SAMRIDDHI – livelihood (farm and non-farm) for
farmers/fishermen
� ABHA – Skill building for women
� DAKSH – Skill building for youth
� ROSHNI – SHG formation and strengthening
� DHAAGA – Garment and handicraft making
� POWER OF SPORTS – Sports
is a women-based micro-enterprise
Initiative in focus: DHAAGA
Dhaaga
initiative of
Tata Power. This initiative has led to the promotion of local
talent and conservation of traditional art form. It also facilitates
skilling for garment and handicraft making to augment
household income. The Rabari women artisan and tribal
Santhal women of Gujarat and Jharkhand, respectively, are
engaged in this initiative. We also launched Dhaaga retail
outlets in November 2019 in Delhi and Pune and formed
market
Indian Hotels, Tata Motors,
Amar Kutir Society, Kalaraksha, and other corporate offices. We
have augmented the outreach digitally via Amazon Saheli and
the Dhaaga Instagram page.
linkages with Okhai
Initiative in focus: ABHA
Abha is an initiative to encourage skill development and
empowerment for girls through the ‘earn while you learn’
approach in JJ clusters of Delhi. The initiative covers 2,246
beneficiaries in collaboration with the UNDP and Urban
Clap across Maharashtra and Delhi.
Under Abha, we have established:
� 300 Women Literacy Centres (WLC)
covering 25,000+ women
Maternal
and Child
Health
� 24 vocational centres (Roshni) for women
empowerment in Delhi, Maharashtra and Jharkhand.
� A Maha E-Seva centre for inclusivity (government
scheme linkages)
� Maternal child health sessions by ASHA workers
� Paper bag making, beautician courses and tailoring
sessions for income augmentation
Initiative in focus: DAKSH
The initiative aims to augment skill building among the
unskilled youth who represent a substantial number of
dropouts. Various vocational courses such as beauticians,
industrial trading and nursing, among others, are imparted.
Daksh covers 11 locations primarily focusing on girl trainees.
Post-training placement is at 80% with an average salary of
₹ 8,000 - ₹ 10,000 a month.
80%
Placed post training with
an average monthly salary
of ₹ 8,000-10,000
I M PA C T C R E AT E D
D 60 LAKH
Order value generated by
Dhaaga in FY20
50+
Exhibitions across Delhi,
Mumbai, Bengaluru, Pune,
Thane and Kolkata
D 20.92 LAKH
Revenue generated in FY20
DHAAGA
Won gold medal in Asian
Customer Engagement Forum
(ACEF) CSR excellence award
in 2019
Women
Skilling
Integrated
Approach
Women
Literacy
Centres
Financial
Inclusivity
Remedial
Coaching
E-Seva: Linkage to
Govt Schemes
Abha Centre
for Skilling-Delhi
WLC Centres- Delhi
initiative creates opportunities
Initiative in focus: SAMRIDDHI
The
for communities,
particularly farmers, to build assets, adopt new livelihoods
and seek new opportunities for themselves and their families.
These opportunities are provided through agricultural
practices and employability for farmers and fishermen.
Delight Mushroom and X-Compost address farm-based
livelihoods. The objective of Delight Mushroom is to increase
mushroom cultivation. The objective of X-Compost is to
empower farmers and SHGs by scaling up vermicompost
practices for better agri yield.
With focus on skill building to meet job market needs,
promoting sustainable agriculture and fishery practices,
and channelling energy through sports, the initiative has
had significant beneficial impact on the livelihood of youth,
farmers and fishermen.
D 8,000
Average rise in monthly income
of farmers/fishermen
88
89
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Livelihood and skill-building
Initiative in focus: Tata Power Skill Development
Institute (TPSDI)
TPSDI helps develop employable skills, especially in the power
and allied sectors. It also aims to address the skill gap faced by
the Indian power sector. The institute provides modular training
and certifications. TPSDI operates five training centres and has
trained 40,000+ youth on various trades with safety and soft
skills as an integral part of the modules.
In alignment with the programme’s vision, we launched TPSDI
Skills on Wheels to make skill training accessible to people and
provide Recognition for Prior Learning (RPL), Motor Rewinding,
and Solar Skills, among others.
A paradigm shift in power sector skilling: ABHA at TPSDI
A special initiative of TPSDI is to enhance employability of
women. Currently, training is provided on 10 trades such
as domestic wiring, power systems, solar skills, among
others. More than 75% women trainees opt for higher
education. More than 300 women were trained under this
initiative, enabling them to generate a monthly income of
₹ 8,000 on average.
TCS – Tata Power Youth Employability Programme
This is a collaborative effort between TCS and Tata Power. The
programme aims to increase employability of unemployed
youth in organised sectors. The training covers soft skills,
business communication and etiquette. On completion, the
trainees undergo a written test, and those qualifying go through
three rounds of interview with the HR department of TCS,
Kolkata. Further, they are then directly placed in the BPS/KPO
services of TCS. The programme was started in Naraj Marthapur
and is now available in Maithon and Kalinganagar.
ISO 29990:2010
HONOURED
Certification awarded to TPSDI by
the Bureau Veritas, a certification
body accredited by the National
Accreditation Board
At the 6th Global Training
and Development
Leadership Awards for
‘Excellence in Training &
Development’
In a free enterprise, the community is not just
another stakeholder in business, but is in fact the
very purpose of its existence.
Jamsetji Tata, Chairman, Tata Sons (1868 – 1904)
ISO 9001:2015
Certification awarded to TPSDI by
the Bureau Veritas, a certification
body accredited by the National
Accreditation Board
90
Initiative in focus: Maval Dairy
To support women empowerment, we established an all
women dairy-based enterprise with about 1,500 members
from 26 villages of Maval. The Dairy 10000 LPD Plant
was successfully commissioned
is
Maharashtra’s first and India’s second all women dairy farm.
We are now scaling the membership base to 3,000 across
41 villages. The dairy provides 1 lakh litres of bulk supply with a
turnover of around ₹ 1 crore.
in December 2019.
It
Initiative in focus: Creating employability through
microgrids
The programme primarily targets micro-entrepreneurs to
sustain demand for microgrids. Teaming up with the Rockefeller
Foundation, we set up Tata Power Renewable Microgrid Limited
(TPRMG) to enable access to reliable and renewable electricity
for 25 million Indians. On an average, two micro-entrepreneurs
with two associates each will be supported by our proposed
microgrid of 30 kW. With 10,000 microgrids, 5,000 micro-
entrepreneurs will be created, who will, in turn, employ 10,000
associates. To achieve this, adult literacy centres, self-help group
centres and vocational training centres are being explored to
enable gainful employment.
TPRMG’s three-pronged approach to develop capacity
On-ground demand
creation team
� Deploy a demand
creation team on ground
to work in collaboration
with TPRMG team
� Work towards
mutually agreed targets
� Monitor performance and
suggest course correction
Create long-term demand
partner ecosystem
� On-board MED partners for
different demand activities
� Develop capacity
of partners to work
independently
with the TPRMG team
Sourcing and training the
TPRMG workforce
� Create training modules and
different delivery mechanisms
(online, classroom, on-site)
� Engage with NGOs/
foundations for sourcing
trained manpower
� Training delivery to TPRMG
employees for demand
creation and operation
and maintenance
91
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Our CSR performance
Responding to the COVID-19 crisis
FY20 coverage of 27.10
beneficiaries
target of 22.90 lakh in FY20
against
lakh
annual
Education
Financial Inclusivity
1.91
2.68
2.52
3.12
Health and Sanitation
4.29
5.41
Livelihood & Skill Building
0.74
1.63
1.81
2.41
11.63
11.85
22.90
27.10
AA and Others
Water
Grand Total
Annual Target FY20
Achievement FY20
Awareness building on
prevention measures
Face mask making and
distribution
through
Dhaaga women members
Enabling mobility of basic
items to villages (water and
fodder)
Government scheme linked
essential items distribution
for migrants and vulnerable
communities
1,00,000+
Face masks supplied by
Dhaaga members
People supported with
foodgrain (one food
packet ensures five meals)
5,000
3,600
Migrant workers
surveyed for essential
services benefit
Cattle supported with
43,000 kgs of uninterrupted
fodder supply
3,00,000
30,000 KG
People linked with PDS to
get 50 kgs of foodgrain
Vegetables supplied by SHG
members to local ‘mandis’
The following actions were taken to ensure active awareness
of our people and help
the
COVID-19 pandemic:
communities during
65,600
1. Awareness generation on social distancing and distribution
of hygiene kits to villagers and migrant workers across 13
states
2. Uninterrupted water supply through water ATM run by
community
3. Facilitation of 53 Hunger Relief Support Centres to ensure
provision of essential items and food packets
4. Two mobile dispensary vans deployed to create awareness
among slum clusters
5. Uninterrupted supply of drinking water
for transient
fishermen and other migrants
6. Coordination with local authorities for converting academic
institutes into quarantine and isolation centres
7. Supply and spray of disinfectant in peripheral villages of
Jharkhand
8. Distribution of grocery items (flour, salt, sugar, tea, spices,
lentils and potatoes) for daily wage workers
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
92
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
93
Affirmative Action Policy
As part of our Affirmative Action (AA) policy, we work with
the marginalised and disadvantaged communities. It covers
tribal villages, vulnerable children who need care as well as
communities in need of protection and improvement in the
quality of life. Tata Power works towards upholding rights and
entitlements through various initiatives for the socio-economic
development of communities. The initiatives under this policy
are in addition to the five thrust areas of the CSR programme
and focus on the five prime areas of Education, Employability,
Employment, Entrepreneurship and Essential Amenities.
Stakeholder
Engagement for
Leveraging Resources
Promoting Tribal
Education
Reaching beyond its neighbourhood, Tata Power implemented
an
in
integrated community empowerment programme
Kadachimate village of Jawhar Block (Palghar district). Being
primarily a Tribal dominated area with poor development
indicators, we undertook the following initiatives:
� Designed and executed specific long term and short term
interventions to address the needs of 130 families to augment
the income of these marginalised communities
� Aimed to improve socio-economic indicators and quality
of life of people through community participation and
building community institutes for self-sustainable growth.
This involved promoting formation of village development
committees, empowering women through formation of Self-
Help Groups and organising youth groups.
� Promoted sports development to channelise youth energy
and enhance engagement
� Conducted employability
through
local Industrial Training Institutes and Tata Power Skill
Development Institute
for youth
training
Organic Farming
for Better Yield
Mushroom Cultivation
for Livelihood
� Successfully executed a Public Private Partnership
model (Government, Tata Power and Community) for
construction of farm ponds
2.41 LAKH
Beneficiaries coverage
under AA initiatives
24.55%
Coverage of beneficiaries
achieved in FY20 against
target of 18.05%
Volunteerism at the heart of our
community welfare
At Tata Power, we encourage volunteers in our CSR initiatives.
We launched an employee volunteering portal, ARPAN, which
resulted in a 250% increase in volunteering hours. ARPAN was
launched with the objective of providing our employees an
avenue to actively participate and contribute to social causes
across all locations.
FY20 volunteering highlights
� Clocked 1.7 lakh volunteering hours
� Received five awards at the Tata Group level for promoting
volunteering across locations as well as for highest per
employee volunteering hours
� 86 tonnes of plastic waste were collected by 9800+ volunteers
in the SHS campaign
� Launched Tree Mittra drive at Dharavi with our customers as
well as senior leadership; planted around 10.3 lakh saplings
across locations
� Adhikaar Champions enrolled 500+ beneficiaries in Health,
Right to Food (RTF) campaign, Senior Citizens and Income
Certificate schemes
� Received National Volunteering Award from iVolunteer in
Best Corporate for Promoting Employee Participation in
Volunteering category
1.7 LAKH
Volunteering hours in FY20
Beyond our thrust areas: Club Enerji
The Tata Power Club Enerji, launched 12 years ago, is a
sustainability initiative that aims to create awareness among
school students on energy and resource conservation.
The programme is based on the four-stage model of Educate
(sensitise school children about energy conservation practices),
Engage (empower energy champions to spread awareness
among peers and the community), Enhance (enthuse schools to
participate and contribute to Club Enerji initiatives), and Empower
(create self-sustaining mini clubs to lead the movement).
The initiative also reached out to digital audiences through its
website, social media and online module themed ‘Save water’.
In FY20, we initiated four new campaigns – ‘I have the Power’,
‘ILiveSimply’, ‘#SwitchOff2SwitchOn’ and 'I Can' – to further the
success of Club Enerji among the youth. These campaigns were
also promoted on popular social media platforms to reach to a
larger section of the targeted audience.
Club Enerji in Limelight
� Won the highest accolade in the field of innovation –
the Edison award
� Won gold and silver for the best environmental
behaviour change campaign with the new
Club Enerji anthem winning award for the best
social media campaign
� Won an award in the ‘Cause Branding’ category at
Global CSR Excellence & Leadership Awards 2019
� Awarded for its website under the ‘digital newsletter
category’ at the PRCI (Public Relations Council of
India) Excellence awards
� Club Enerji along with Tata Power’s customer initiative
‘Be Green’ won an award for ‘Overall Content’ at
CMS (Content Marketing Summit) Asia Awards 2019,
South Asia Edition
533
26.4 MN
31.8 MN
Schools covered
under Club Enerji
Citizens sensitised
Units saved, with a total of
3.64 lakh Energy Champions
as well as 4.1 lakh Energy
Ambassadors
94
95
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Our accomplishments and recognitions
Excellence is at the core of Tata Power’s operations, which has been regularly recognised by the market
and industry globally. Tata Power and its subsidiaries have excelled in a range of domains like Health &
Safety, Employee Well-being, Gender Diversity, CSR, Quality, Energy Conservation, Risk Management,
Procurement, and Skill Training.
1. Tata Power won multiple awards at the ACEF Asian
Leaders Forum and Awards
ceremony held on
28th September 2019. The awards were won for CSR,
Branding and Marketing activities and took home three
gold, two silver and one bronze category awards for several
of our campaigns such as #ThisIsTATAPower, Tata Power
Club Enerji, #SwitchOff2SwitchOn and more
2. Civil & Estate Division of Tata Power won gold at
for Quality Concepts
International Convention
the
2019, Tokyo, Japan
3. TPDDL has been recognised amongst India's Top 75
15. Tata Power won two awards - the 'Best Risk Management
Framework & Systems - Power' and 'Business Continuity' –
the 5th Edition of The India Risk Management Awards 2019
16. Tata Power won two awards at the 58th Annual Association
of Business Communicators of India Awards
17. Tata Power won twin honours at the Central Board of
Irrigation and Power (CBIP) Awards, 2019
18. Tata Power won the prestigious Global Edison Awards under
"Social Innovation (Social Energy Solutions)" category for its
'Club Enerji - #SwitchOff2SwitchOn' campaign
Workplaces for Women 2019
19. Tata Power was ranked as One of India's Most Respected
Companies by Business World
20. Coastal Gujarat Private Limited awarded Environment
Excellence Award by the Indian Chamber of Commerce
4. Tata Power's Chief Sustainability Officer, Shalini Singh,
named Asia's Top Sustainability Superwoman for 2019
5. Tata Power was awarded at the 10th CII ENCON Awards for
energy conservation
6. Tata Power was awarded for 'Procurement Excellence' at
SAP ARIBA Customer Success Day, Mumbai
7. Tata Power was honoured with The CSR Journal Excellence
Award for Education & Skill Training
8. Tata Power's Mumbai Distribution team won the theme of
"Digitisation" Practices in the sector of " Services" at the
7th CII National Excellence Practice Competition 2019
9. Tata Power won the platinum award for Occupational
Health & Safety from the Indian Chamber of Commerce
10. Directorate of Vocational Education & Training, Government
of Maharashtra felicitated Tata Power for its efforts in
vocational education and training
11. Tata Power recognised for addressing challenges of open
defecation by Government of Netherlands
12. TPSDI was honoured at the 6th Global Training &
Development Leadership Awards for 'Excellence in Training
& Development'
13. Tata Power won two awards at the Global CSR Excellence &
Leadership Awards 2019
14. Tata Power was ranked among the top 10 companies in
2019’s Indian Corporate Governance Scorecard, which is
developed jointly by BSE Limited, the International Finance
Corporation and Institutional Investor Advisory Services
India Limited (IiAS), with the financial support of the
Government of Japan
96
21.
TPSSL won the Gold Award for “Rooftop Solar EPC Company
of the year” at the India Rooftop Solar Congress 2020
22. “Best asset management team - EPC "Utility Award" given to
Tata Power Solar at the RE Asset Management Awards 2020
23. TPSSL was adjudged No. 1 Rooftop EPC Company
six times in a row by BTI, a leading cleantech consulting
and knowledge services provider
24. Tata Power was recognised as the Best Corporate in
Promoting Employee Volunteering at National Volunteer
Conclave, organised by iVolunteer, a national platform for
promoting volunteering. It also bagged five awards at Tata
Group Volunteering Recognition platform
97
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Natural Capital
Leading the
New Energy World
Sustainability being our core philosophy, Tata Power leads
the way in generation of non-emitting sources of energy
that provide low-cost electricity and help reduce carbon
emissions. With a 30% clean energy portfolio, aiming to be
50-60% by 2025, Tata Power comprises the entire gamut
of alternate sources to power the world.
Mr. Praveer Sinha, CEO and MD
strongly believes
resource conservation, energy
in
Tata Power
efficiency, habitat protection and enrichment and development of local
communities in and around its areas of operations. We are working to
set standards in the development and implementation of cutting-edge
eco-friendly technologies and processes for reducing our carbon footprint.
This effort is augmented by collaboration with policymakers and regulators
to standardise technology, strengthen the renewable energy portfolio,
accelerate the development of cost-effective energy-efficient programmes
while managing consumer demand for electricity. We understand that we
must function in partnership with our stakeholders to make significant
progress on our strategic objectives and grow sustainably. Our track record
of over a century of innovation and leadership in the energy industry gives
us confidence to find ways that address sustainability issues in a manner that
will deliver benefits to our customers, shareholders and society.
PE R FO R M A N C E H I G H L I G H T S
100%
Fly ash utilisation in all
thermal plants as per
applicable guidelines
10 .3 LAKH
0.681 tCO2e/MWh
Saplings planted
in FY20
Carbon intensity achieved in FY20
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
SBO 4
Focus on sustainability
with an intent to attain
carbon neutrality
� Carbon emission
management
� Waste management
� Resource availability
� Biodiversity
� Climate change
linked “transitional
risks” due to
enforcement of
mitigation measures,
e.g., emission caps
� Resource scarcity,
e.g., fuel, water
� Increased disclosure
on Environment,
Social and Governance
(ESG) performance
� Increased disclosure on
environment aspects
� Reduce depletion
and pollution of
natural resources from
business activities
� Climate change awareness
and alignment to NDC
I M PAC T O N OT H E R C A PI TA L S
Our performance in Natural Capital has a significant influence across all other capitals.
Social & Relationship Capital
Impact
� Improved health and well-being
due to reduced pollution
� Improved water security
� Reduction of carbon footprint
leading to cleaner environment
� Mitigating impacts
of climate change
� Rural electrification through
microgrids, delivering unique
customer experience by leveraging
technology as well as social
engagement leading to creation of
entire ecosystem
Intellectual Capital
Impact
� Opportunities to improve
operational efficiency of thermal
plants to reduce emissions and
stress on resources
� Innovation to maximise efficiency
of wind and solar plants
� Innovative low cost yet reliable
product such as Smart energy
meter, multi-fuel biomass
energy generator etc.
Financial Capital
Impact
� Difficulty in financing
thermal assets with capital
moving to renewables
� Distribution companies
avoiding long-term PPAs
for thermal assets
Natural
Capital
Manufactured Capital
Impact
� Installation of pollution control
and energy efficient equipment
� Gradually phasing out
our thermal assets
� Opportunity for expanding
portfolio in renewables-linked
services, renewables and new
energy efficient businesses
Human Capital
Impact
� Opportunities to volunteer
for initiatives to improve
the environment and bio-
diversity, enabling a sense of
togetherness in the organisation
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
98
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
99
Since the start of the Industrial Revolution, our planet’s natural
equilibrium has been progressively disturbed which, among
other factors has accelerated the global warming process,
restricted natural habitats and put a strain on available
resources. This will impact our future generations in ways that
will be hard to mitigate if we do not act and continue business
as usual. As a responsible member of the society, Tata Power
is committed to play a leadership role in combating adverse
climate change while achieving sustainable growth. We are
aligning our interventions with the United Nations Sustainable
Development Goals (SDGs) and India’s Nationally Determined
Contributions to translate the world's needs and ambitions into
sustainable business solutions. These solutions will enable us
to better manage our risks, anticipate consumer demand, build
positions in growth markets, secure access to needed resources,
and strengthen our supply chains, while moving towards a
sustainable and inclusive development path.
SDGs. This covers environmental, operational,
innovation
or technology-linked, and growth-related parameters for
our operating divisions and supporting
functions. The
dashboard includes key performance indicators from the
erstwhile Green Manufacturing Index (GMI). Tata Power has a
dedicated Environmental Policy, along with policies on energy
conservation, sustainability, e-waste management etc. These
policies encourage the Company to conserve resources, reduce
environmental impact, seek to enhance awareness among
employees and make business decisions. We are fully compliant
with prescribed permissible limits as per the Central Pollution
Control Board (CPCB) and respective state pollution control
boards (SPCBs) for air emissions, effluent discharge, and solid
and hazardous waste generation and disposal. In addition to
the statutory parameters, the beyond compliance parameters,
like CO2 intensity, efficiency of the operating plant, water
conservation and waste recycling are also monitored.
Embodying this spirit, we have introduced the SDG dashboard
for monitoring business-related parameters on four prioritised
100 The Tata Power Company Limited Integrated Annual Report 2019-20
Our efforts at reducing emissions
Emission management
The impact of pollution from burning fossil fuels are being keenly
felt across the globe. To mitigate the impact, Tata Power is in the
process of transitioning to less-polluting sources of energy with
minimal adverse impact on climate change and biodiversity.
We are steadily building up our green portfolio. The acquisition
of Welspun Energy (1,010 MW) in 2016 was a step in this
direction. We are also developing an exit plan to phase out our
existing thermal power plants and have pledged not to pursue
greenfield or brownfield projects in that sector. An increased
share of renewables in the total energy portfolio, coupled with
increased energy efficiency, is projected to consistently reduce
our total CO2 emission intensity in the near future.
S U M M A R Y O F G H G E M I S S I O N S
( S C O P E 1, S C O P E 2 A N D S C O P E 3)
Description
Scope I (tCO2e)
Scope II (tCO2e)
Scope III (tCO2e)*
Total
Unit
34,952,981
22,051
1,226
34,976,258
*The source of emission factors used for the calculation of Scope III emissions is IPCC
tool version 2.6.
Along with GHG emissions, release of air pollutants is a major
source of concern for our stakeholders. While the former has
long-term impacts on our climate, the latter has immediate
health impacts for our community, leading to acute and chronic
respiratory ailments as well as other serious health disorders.
We aim to control air pollution at source by utilising efficient
generation technology, efficient controllers and tall stacks for
wider dispersal.
Measures undertaken to control air pollution:
�
Improved efficiency of boilers by implementing sub-critical
technology at Trombay, Jojobera and Maithon units, while
CGPL became the first plant in India to implement super-
critical technology
� Use of bag filters to minimise dust at coal junction towers and
bunker galleries
� Use of low-ash coal and electrostatic precipitators to reduce
PM10 and PM2.5 emissions
� Adopted seawater-based Flue Gas Desulphurisation (FGD)
at Trombay unit for SO2 control, predating government
stipulation
F O U R M A J O R T H E R M A L P O W E R P L A N T S —
J O J O B E R A , T R O M B AY, C G P L A N D M A I T H O N
Description
Particulate Matter (PM)
Oxides of Nitrogen (NOx)
Oxides of Sulphur (SOx)
Unit
4,254 MT
76,105 MT
111,553 MT
101
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices A U X E N E R G Y C O N S U M E D
To further achieve operational excellence, several initiatives have been planned or already commissioned to enhance the efficiency
of our power plants.
Improving operational efficiency
Energy consumption
In the present scenario of deteriorating climate conditions,
energy conservation is an effective tool towards the mitigation
of CO2 emissions. We, at Tata Power, believe that energy
conservation is the most economical solution to energy
shortages faced by India. Tata Power strives to be efficient in
its operations by utilising auxiliary energy conservatively and
installing energy efficient devices.
Our energy-saving initiatives in generation
� Switchover to Variable Frequency Drive from constant
large pumps across various power
in
speed drive
plants operated by us
� Standardising AC temperatures to 24°C
� Replacing electric water heaters with solar water
heaters at canteens
� Solar-based LED lighting in selected areas, including streets
� EVs for movement within plant premises
Currently, Trombay leads the way in least auxiliary (aux) energy
consumption among thermal power plants.
CGPL
Maithon
Trombay
Jojobera
7.7
5.9
5.4
9.9
IEL (Powerhouse 6)
6.9
IEL-Kalinganagar
9.2
Haldia
Hydro
7.9
1.7
0.0
2.0
4.0
6.0
8.0
10.0
12.0
% of Total Energy Generated
Initiatives implemented in Trombay to optimise
auxiliary consumption:
� Arresting air infiltration and replacing RAPH seals and
baskets at Unit 8
3,350,469 MWh
Total auxiliary energy consumed in FY20
� Refurbishing cartridge of BFP 8C main pump
� Reducing pressure set point for air compressors at Unit 5
and Unit 8 and optimising usage of non-essential air
M A I T H O N P O W E R L I M I T E D ( T H E R M A L )
J O J O B E R A ( T H E R M A L )
Integration study and minimum
Based on System
parameters required for reliable full load operation of
the plant, Condensate Extraction Pump (CEP) de-staging
assembly has been incorporated at Maithon Power
Limited, with a view to achieve the best possible auxiliary
power reduction, without affecting the reliability of the
plant operation. Auxiliary power saving by CEP de-staging
with 90% station availability was about 1.58 MUs for FY20.
During winter, under favourable weather conditions and
low Plant Load Factor, we established an interconnection
at the Circulating Water (CW) system. This enabled us to
stop one CW pump, which saved auxiliary power without
affecting the required vacuum for the unit. In FY20,
0.60 MUs of auxiliary power was saved through this
approach.
K A L I N G A N A G A R ( T H E R M A L )
K O D I H A L L I ( S O L A R P V )
A Robot has been deployed to clean solar panels, which
helped bring down operating expenses, and increase
generation efficiency of the solar plant.
I Y Y E R M A L A I ( S O L A R P V )
In the monsoon season, isolated modules and strings
caused ground faults leading to 0.42 GWh of generation
loss, notwithstanding the major steps taken to correct
it. In FY20, re-conduiting of cables was done to avoid
increase generation. Around
ground
0.42 MUs of generation loss was avoided in FY20 by
re-conduiting the cables
faults and
Energy performance of HT drives was improved by
undertaking CW interconnection, optimisation of boiler
feed pump during partial load, optimisation of cooling
tower fans during winter and night, reduction in feed
water header pressure, etc.
C O A S TA L G U J A R AT P O W E R L I M I T E D
( T H E R M A L )
VFD for Condensate Extraction Pump (CEP)
Variable Frequency Drive (VFD) for CEP was installed to
achieve reduction in Auxiliary Power by decreasing the
frequency of the pump below design considerations and
keeping deaerator control in open condition. In FY20,
11.74 MUs of auxiliary power was saved through this
initiative, reducing CGPL’s total auxiliary consumption by
0.04%.
Reduction of clean up cycle time
The clean-up process at start-up was reviewed and
benchmarked with other utilities. Major recommendations
were implemented in the area of clean-up process, as well
as operational and chemistry aspect of start-ups. These
measures reduced auxiliary consumption by 0.2 MUs and
saved 1,000 m3 of De-mineralised (DM) water in FY20.
Improvement of Hot Re-Heat (HRH) temperature
and adjustment of Yaw mechanism
This approach is used to fine tune the Yaw setting, thereby
minimising flue gas maldistribution in the upper furnace.
This led to an improvement in HRH steam temperature and
in the heat rate by 3.5 kcal/kWh in FY20.
102
103
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Heat Rate is calculated for all thermal power plants by comparing
the energy consumed by each plant and the corresponding
energy generated. The Energy intensity Ratio (Heat Rate) for
thermal plants is represented below, with CGPL leading the
way, on account of various innovative measures undertaken.
Building on these accomplishments, we have further plans to
implement more initiatives to bring down the station heat rate
at our various power plants.
M A I T H O N P O W E R L I M I T E D ( T H E R M A L )
An Artificial Intelligence (AI) and Machine Learning (ML)
model-based project has been implemented for overall
Station Heat Rate (SHR)
improvement and moving
towards autonomous power plant. Digital twins at Unit 1
and 2 will recommend heat rate optimisation for steady
state (full load or partial load), which will, in turn, help run
the plant automatically at optimum level.
H E AT R AT E (G J/ k W h)
CGPL
0.00886
Maithon
0.00998
Trombay
0.01000
Jojobera
0.01075
Resource conservation
C O A S TA L G U J A R AT P O W E R L I M I T E D
( T H E R M A L )
technology
(SPPA-P3000 Combustion
Laser-based
Optimisation Technology) has been planned
for
implementation at one unit of CGPL Mundra. It involves
measuring and homogenising the combustion process to
avoid local emission and temperature peaks. This gives
room for the optimisation of excess air level, which is
beneficial for both emissions and efficiency.
We take cognisance of the perils of over-consumption of natural resources in the short- and long-run. Currently, majority of the coal
for thermal power plants is sourced from coal mines in Indonesia. The ongoing transition to renewable energy is enabling us to
reduce our dependence on non-renewable resources, especially imported coal, and drastically reduce the associated impacts from
mining of these raw materials. We are focusing on energy efficiency, renewable energy, and shift in fuel mix to more sustainable
options in order to drive resource conservation and sustainable business operations.
Power station
Coal consumption
(MT)
Light Diesel Oil
(kL)
Heavy Furnace Oil
(kL)
Natural Gas
(MT)
CGPL
Maithon
Trombay
Jojobera
IEL (Powerhouse 6)
11,010,596
3,870,977
2,345,432
2,520,655
N/A
624
678
124
2,102
1,483
4,232
1,367
556
N/A
N/A
N/A
N/A
234,505
N/A
N/A
� Rinse water recovery
� Reduction of service water consumption by continuous
replacements of corrugated service water and fire water line
� Utilisation of Sewage Treatment Plant (STP) water for
gardening
�
�
Installation of flow meters in service water system to identify
consumption pattern
Installation of isolation control valves before fire water
line replacement
Case study: At IEL Kalinganagar, our customer had
formally requested for the reduction of specific water
consumption as it was contributing to their overall cost
of product. After exploring several possibilities, it was
decided to recover seepage water from cable trenches.
Water management
We appreciate the importance of sustainable water management
in our operations. Water is a critical natural resource for thermal
power plants, which still constitute 72% of Tata Power’s
domestic electricity generation portfolio. Best management
practices are implemented across stations to minimise specific
water consumption.
All the plants have
implemented various water saving
initiatives, resulting in a significant decrease in the specific
water consumption.
� Demineralisation (DM) plant - backwash water recovery
� Cell overflow recovery
Case study: At CGPL, Specific water consumption has
improved from 0.193 m3/MWh in FY19 to 0.157 m3/MWh
in FY20 with the following initiatives:
This has been achieved by:
� Corroded Fire and Service water line (made of mild
steel) has been replaced by carbon steel pipelines
with corrosion protection coating.
� Fire Line configuration has been changed from
underground to above ground for early detection of
leakages and ease of maintenance.
� DM water consumption has been optimised through
various operational practices.
� Clean up cycle time has been reduced to minimise DM
water consumption.
CGPL received the 1st runner up award in the
“Best Water Efficient Power Plant over 500
MW” category at Water Optimisation–2019
event organised by Mission
Energy
Foundation on 3rd May 2019.
We were able to recover 13,500 m3 of water, reducing our
specific water consumption by 0.033 m3/MWh. In FY21,
it is estimated that 45,000 m3 of water will be recovered
amounting to significant savings for the customer. We are
also exploring options to recover water from GIS cable
vault and other neighbouring trenches.
104
105
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Further, all the major effluents (service water effluents, coal
handling plant effluents, ash pond overflow) are treated in
Effluent Treatment Plant (ETP) as per statutory norms of the
respective state pollution control boards before reusing,
recycling or disposing. Along with these initiatives, many plants
and select receiving stations have initiated rainwater harvesting
to ease the strain on existing water sources. Additionally, all the
other effluents, including the boiler blowdown, are treated in the
ETP, and the treated water is utilised subsequently for horticulture
or green belt development, and for control of fugitive emissions
from coal yard.
The cooling tower blowdown is cooled further and used as make-
up for the service water system, coal handling plant water system,
ash water system, firefighting, etc. The treated water is reused
internally for horticulture/plantation/green belt development, as
well as used for control of fugitive emissions from coal yards.
All power plants are operating with a “minimum water
requirement and minimum effluent generation” system. All
thermal power plants have cooling towers, except Trombay and
CGPL, which have sea water-based once-through cooling system.
Process water required for thermal and hydro power plants forms
the bulk of our water consumption.
Water source for power plants
WAT E R C O N S U M P T I O N B Y P O W E R P L A N T S I N F Y 2 0
� Trombay Thermal Power Station – Fresh water
(supplied by Brihanmumbai Municipal Corporation)
for processes and services, Seawater for
cooling processes
� CGPL – Desalinated water for processes and cooling
purpose. It is the only power plant in India which
generates fresh water for itself
� Haldia – Hooghly River
� Kalinganagar – Kharsua river
� Maithon – Maithon dam
� Jojobera - Subarnarekha River
5,175,563,739 m3
1,262,708,995 m3
Sea Water
Surface Water*
5,211 m3
Rain Water
*includes Municipal water supply
As part of the water sustainability strategy for being future ready, we are taking efforts in all our operations to recycle and reuse
wastewater. Currently, Jojobera and Maithon power stations have achieved zero-liquid discharge. Further, all wastewater generated
at the captive power plants at Kalinganagar and Haldia are sent to our customer's ETP for recycling and reusing in their processes.
WAT E R R E C YC L E D, R E U S E D A C R O S S O U R T H E R M A L A N D H Y D R O P O W E R S TAT I O N S
Power station
CGPL
Maithon
Trombay
Jojobera
IEL (Powerhouse 6)
IEL Kalinganagar
Haldia
Bhira Hydro^
Bhivpuri Hydro^
Khopoli Hydro^
Water
withdrawn (m3)
Wastewater
recycled/ reused (m3)
Wastewater
discharged (m3)
4,439,035,230*
15,043,816
737,333,846*
10,112,521
2,243,502
3,095,877
2,437,053
694,586,200
267,902,200
266,487,700
52,327
686,561
52,252
509,795
47,701
0
0
440
33
692
4,248,927,880*
0
736,604,404*
0
0
380,829#
548,241#
694,586,200
267,902,200
266,487,700
*Figures for Trombay and CGPL include sea water withdrawn and discharged for once-through cooling system.
#Wastewater generated at Kalinganagar and Haldia is sent to customer for recycling and reuse.
^ Hydros use water collected in catchment area for power generation and release it entirely outside the project boundary for downstream consumption. These stations don't
consume any surface water in process of generating electricity.
Further, the transition towards RE projects is expected to substantially decrease water requirements, thereby reducing the cost and
water footprint of our customers, as well as immensely benefiting the community and the environment.
106 The Tata Power Company Limited Integrated Annual Report 2019-20
107
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices Waste management
We manage our generated waste in an environment friendly,
socially responsible and techno-commercially viable manner.
The single largest form of solid waste generated from Tata
Power’s thermal power plants is coal ash (from combustion of
coal), besides other types of wastes such as municipal or domestic
wastes, hazardous wastes, biomedical wastes and e-wastes.
There are no significant solid wastes associated with generation
of electricity from oil and gas-fired plants. Hydropower, wind
and solar power produce insignificant, if any, amount of solid
waste. We ensure that the best waste management practices are
implemented to reduce, reuse and recycle the waste generated.
In addition to recycling, a strong focus is placed on identifying
opportunities to prevent waste or bring new life to materials
that might otherwise be discarded.
Tata Power has implemented several
initiatives to responsibly manage the waste
� Compost produced by waste converter at Maithon
plant and township minimises emissions and waste
used for gardening and plantation (1,285 kg compost
produced in FY20)
� Fly ash generated at Jojobera is reutilised in the
manufacturing of bricks
� Fly ash from the main silo of Maithon is directed
to cement plants
� Fly ash-based paint developed in-house by using
fly ash from Jojobera plant and ingredients of
cement paint; 15-20% fly ash is used in overall
composition of this paint
� Horticultural waste converted into wood chips to
make raw material for particle board/paper making
Thermal power station
Fly-ash utilised* (MT)
CGPL
Maithon
Trombay
Jojobera
* 100% fly-ash utilisation achieved in FY20 as per norm
545,048
1,596,653
47,775
1,240,671
The majority of our non-hazardous waste comprises fly ash and
bottom ash. This is redirected towards construction (RMC as
per fly ash notification) and quarry filling (as per SPCB NOC). All
the generated waste is channelled to authorised recyclers only.
Additional non-hazardous waste at generating stations generally
comprises of metal scraps and scrap wood. For distribution and
transmission utilities, it primarily includes oil drums, scrap cable
and metal pieces, meter boxes and assorted iron mix.
S U M M A R Y O F N O N ‑ H A Z A R D O U S WA S T E
G E N E R AT E D
Non-hazardous waste
Waste quantity (MT)
CGPL
Maithon
Trombay
Jojobera
IEL (Powerhouse 6)
IEL Kalinganagar
Haldia
Bhira Hydro
Bhivpuri Hydro
Khopoli Hydro
Mumbai Transmission
Mumbai Distribution
TPDDL
TPSSL
805,297
1,597,172
55,808
1,240,671
33
12
113
85
6
5
538
120
1,604
750
Small quantities of hazardous wastes are generated in Tata
Power, which are stored in suitably identified locations. As per
the regulations, hazardous wastes (non-recyclable) are required
to be sent to the respective State Pollution Control Board (SPCB)-
approved common Treatment, Storage and Disposal Facility
(TSDF), and is adhered to by all our units.
For distribution and transmission companies, hazardous
material typically includes used transformer oil, scrap lead
batteries, lead sheathed cable pieces, spent oil etc. For thermal
power generating companies, it comprises used oil, waste
residue containing oil, spent ion-exchange resins etc, while sets
of battery primarily constitute the hazardous waste for Hydros.
Case study: An Integrated waste management
programme has been implemented at CGPL to ensure
environment friendly and safe disposal of waste as well as
gainful utilisation of resources.
S U M M A R Y O F H A Z A R D O U S WA S T E G E N E R AT E D
Hazardous waste
CGPL
Trombay
Jojobera
IEL Kalinganagar *
Haldia
Mumbai Distribution
TPDDL
TPSSL
The programme focuses on three aspects
� Wood chippings: With the help of a local vendor,
3,000 MT of waste wood chips were handled, thereby
saving 3,000 m3 of water on account of stoppage of
controlled fire.
� Ash utilisation: In collaboration with several partners
(cement companies, brick manufacturers, ready-mix
concrete etc), we were able to gainfully utilise around
5.2 lakh MT of fly ash in FY20, resulting in income of
₹ 9 crore in in the financial year; 100% of generated
fly ash in FY20 was utilised within the year as per
regulatory norms.
� Common wastes: With
support of our waste
management partner NEPRA, we were able to effectively
manage 3,800 MT of waste, thereby saving 1,000 MT
of CO2e in FY20.
Solid (MT)
5.8
7.1
11.2
15.3
Liquid
15.3 MT
26.6 MT
47.2 MT
350.2 MT
2.1 MT
25.6 kL
105.4 kL
4.9 kL
* 338 MT of the hazardous liquid waste at IEL Kalinganagar comprises of drip pit water which contains small amounts of corrosive chemicals. This water is treated and reused.
We are conscious of the other waste types generated at our power stations, and manage it diligently in accordance with regulations. Bio-
medical wastes are segregated and are placed in buckets of different colours as per the notification for Bio-Medical Waste (Management and
Handling) Rules and are disposed of through authorised vendors, across all locations. For the reporting period, 1.15 kg of Biomedical waste
was generated at Tata Power (at the Jojobera power station). E-wastes are disposed through authorised vendors for reuse or reprocessing
in a responsible manner. Similarly, scrap lead batteries are disposed of in accordance with Batteries (Management and Handling) Rules.
Power stations
CGPL
Trombay
Jojobera
IEL Kalinganagar
Haldia
Bhivpuri Hydro
Mumbai Transmission
TPDDL
TPSSL
E-waste (MT)
Batteries (MT)
16.4
8.3
6.7
0.4
0.1
2.7
21.9
4.8
13.6
1.5
6.1
We are pleased to report that there were no incidents of significant spills during the year under review. A spill is considered significant
when it results in financial liability from regulatory bodies or any other organisations. Tata Power does not transport any hazardous wastes
categorised under the Basel Convention. There were no discharges of untreated water to any water body and no water bodies were affected
by discharges and/or run-off.
108
109
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Biodiversity management
to nature conservation and
Tata Power’s commitment
strengthening biodiversity is well known. A formal governance
structure is in place that allows for systematic biodiversity
management across the organisation.
Principles guiding our biodiversity management
practices:
�
Integrating biodiversity into Company operations
�
‘Beyond the Fence’ projects – i.e. outside the area of impact
� Creating a culture of care for biodiversity
All Tata Power locations have planned their layout for ensuring
compliance with regulatory green belt requirements as stated
in the Environmental Clearance for individual locations.
E N T E R P R I S E
Governance
and Expertise
on Biodiversity
S I T E S C A L E
Biodiversity
Action Plan
Biodiversity
Management
guidance
documents
Partnership
with experts
Compliance
Impact
Management
I N D I V I D U A L L E V E L
Exposure
to biodiversity
Sensitisation and
volunteering
Native/local species are selected for plantation in the identified
area. Horticulture expert is engaged for ensuring plantation
and its survival. When new transmission line projects are being
chosen, route selection is done to minimise disturbance to
sensitive areas. Wherever necessary, compensatory afforestation
is done. For operational transmission lines, only trimming of
trees, to the extent of maintaining safe distance, is carried
out. The Area adjacent to the corridor (Right of Way) remains
untouched, except for occasional maintenance requirement.
This helps in natural conservation and sustenance of the
biodiversity and habitat in and around the transmission lines.
Before starting projects
involving thermal discharge, we
carry out Marine Environmental Impact Assessment studies
through reputed organisations
Institute of
Oceanography (NIO). Adverse impacts, if any, are identified
and suitable mitigation measures are accordingly built into the
project itself. This ensures that there is no major impact on the
marine environment.
like National
Trombay and CGPL, both use once-through
sea water cooling system. Adequate length of
pre-cooling channels for cooling the hot water
discharge from condensers are provided at
both the plants. This ensures that the thermal
discharge temperature is below the regulatory
prescribed limits for the same all the time. This
ensures there is no adverse impact on marine
environment in the surrounding.
Conservation Initiatives – Preserving
Western Ghat Biodiversity Hotspot
Our hydro power operations are located in the northern
part of the Western Ghats, which is an important biodiversity
hotspot in the world. Rajmachi sanctuary, Thamini sanctuary,
and Sudhagad sanctuary are in close proximity to our areas
of operations. As the Western Ghats are known for being a
biodiversity hotspot, preserving the catchments has become
a national priority that we have extended our wholehearted
support to. Over the past 40 years, we have planted saplings of
fast-growing tree species, native to the Western Ghats, on hill
slopes of the lake catchments. The afforestation programme
was intensified in 1991 and continues till date. Today, the total
area under forest cover is around 1,200 hectares. During the last
decade, the focus has been on growing indigenous local tree
species found in the Western Ghats. These plants are nurtured at
the nurseries of Tata Power in Lonavala. This process is necessary
to promote the biological diversity in the eco-forest system and,
in turn, restore the habitat for selected fauna.
Due to our diligent efforts, over 100 lakh saplings have been
planted across different locations in the hydro catchments in
Maval and Mulshi areas. Through this effort, we aim to make
the area scenic with a healthy ecosystem, in the hope that this
will attract several species of animals, birds and butterflies,
thus ensuring that the Western Ghats continue to be known
as a biodiversity hotspot across the globe. For better planning
and implementation, the aqua diversity of few lakes have been
studied, measured and appropriate steps towards conservation
have been taken. Habitat and breeding grounds of fishes, birds,
reptiles and important grasslands are being protected. Scientific
studies on birds, reptiles and wild orchids have also been carried
out and documented in the form of books.
Case study: Tree Mittra
Tree Mittra is a flagship volunteering initiative of Tata
Power under the "Be Green" theme, which aims to
encourage employees and their families to adopt a
plant and nurture it to ensure its survival. The initiative
was launched at selected Hydros and rolled out across
other locations of Tata Power. So far, we have planted
and nurtured around 10.3 lakhs trees across Tata Power
under our Tree Mittra initiative, thereby creating a positive
impact on the environment.
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
110 The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices 111
Case study: Mahseer conservation
The Mahseer are a species of freshwater fish most of which
face the threat of extinction in the wild. They are important
cultural and biological icons of the rivers of India, linking
livelihoods and biodiversity conservation to each other. The
survival of the magnificent Mahseer, one of the 20 mega
fishes of the world, is important for the preservation of our
eco-system. The health of this fish is linked to the health
of India's big rivers, including the Ganges. With the 'Save
Ganga Movement' picking up over the last few years, one
expects the Mahseer to be able to reap the benefits of this
high-profile programme. Clean rivers certainly help the 'Act
for Mahseer' initiative, as polluted and toxic waters are one
of the main reasons for the depletion of its numbers. Tata
Power has taken up the conservancy programme of the
Mahseer in right earnest. Efforts are being made to convince
the local people about the loss on lucrative tourism market if
the programme does not succeed. There is an endeavour to
sensitise and encourage the people to 'Act for Mahseer' and
work towards a common goal of ensuring the survival of the
Mahseer. The Mahseer is known to be tough and has always
shown an inclination to travel upstream in fast flowing waters
and against the tide – ironically it is also fighting an uphill
battle against extinction.
Holistic conservation and management
strategies were devised to sustain and
replenish the local population of Mahseer,
which encompassed:
� Site/area protection – Habitats outside of
‘Protected Area’ to be managed along with local
communities and NGOs
� Habitat protection – Large pools harbouring
large-sized individuals, including potential
broodstock
� Control of invasive species – Introduction of
competing species to be stopped
� Ex-situ conservation – Captive breeding
and reintroduction
� Fishery management – Education and awareness
among local communities
The mighty Mahseer fish species is recorded in the IUCN Red list
species. Although not affected by our operations, for almost six
decades we have strived to conserve this legendary fish. In line
with its core pillars of sustainability, 'Care for the Environment'
and 'Care for the Community', Tata Power has pledged its
commitment to conserving the Mahseer. We have done a
lot of research on Deccan Mahseer, which originates from
Western India, and Golden Mahseer, which is from Northern
India. Tata Power’s Hatchery is the only hatchery in India which
breeds Mahseer on a large scale. The hatchery breeds around
4 to 5 lakh Mahseer fries every year which are then handed
over to the respective state fisheries department as part of our
conservation programme.
Hump-backed Mahseer
The first documented record of the Hump-backed Mahseer
in the scientific literature dates back to 1849, when British
naturalist Thomas Jerdon mentioned collecting in the River
Cauvery, a juvenile specimen of a mahseer that grows to
enormous sizes. There had been no comprehensive assessment
of the distribution, threats or conservation-needs of this iconic
species. A study was funded by Tata Power and implemented
by the Mahseer Trust, Bournemouth University Global
Environmental Solutions (UK) and Kerala University of Fisheries
and Ocean Studies (KUFOS), to inform future conservation and
policy actions. The earlier research conducted by the project
team helped establish the taxonomy of Humpbacked Mahsheer
as Tor remadevii, which also facilitated its first IUCN Red List
assessment, making this the first Mahseer to be declared as
Critically Endangered. The major threats to Mahseer identified
included illegal fishing, pollution and introduction of exotic
species, among others.
We have also been instrumental in rescuing wild animals
and releasing them back in the wild. So far, we have rescued
pangolins, sambars, wild boars, red spurfowls etc. Certain
endemic and endangered species of trees are also planted
in our areas of operations as part of our biodiversity
conservation programme.
Tata Power's inception a century ago is a unique saga of the
Founder's vision to provide clean energy to the city of Mumbai
with minimal impact on the environment. Today, in our quest
to deliver clean energy globally, we are focusing on building a
robust renewable energy portfolio, scouting for clean sources
of power, reducing our carbon footprint and investing in
cleaner technologies and global resources. Our pledge to
being Carbon Neutral by 2050 is indicative of the fact that,
while having ambitious growth plans, we are committed to
'responsible growth'.
Tata Power, in association with Ela Foundation,
launched the third book of its biodiversity
series – ‘Reptiles of the Northern Western
Ghats’ - a compilation of over 123 endangered
species of reptiles in the biodiversity of the
Western Ghats.
112
113
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20 Financial Capital
Creating shared
economic value
Our legacy is built on the vision of the Company’s founders, who
looked at financial capital as a means of gainfully creating wealth as
a custodian of the community’s resources and return it back to the
stakeholders. This adds a lot of responsibility on the management
to ensure capital allocation does not focus on only financial returns
but overall stakeholder return.
Ramesh Subramanyam, CFO
Tata Power endeavours to invest in businesses capable of generating returns in line with
expectations of our stakeholders. We seek to optimise returns from business operations
as well as from monetisation of non-core assets and investments. Our growth strategy
includes investments in renewables, new emerging businesses, including EV charging,
home automation and microgrids in remote areas.
We continue to raise funds in line with the prevailing market conditions at an optimal cost.
With a century old legacy, Tata Power has remained committed to driving sustainable
value creation based on strong business fundamentals, driven by a diversified and
growth-oriented business model with a strong focus on efficient capital allocation.
Business model realignment and significant improvement in the renewable portfolio has
contributed 14% of the total revenue of the Company in FY20.
PE R FO R M A N C E H I G H L I G H T S
D 28,948 CRORE
D 7,870 CRORE
D 1,316 CRORE
Consolidated
Operating Revenues
Consolidated
Operating Profit
Consolidated
Net PAT
D 2,271 CRORE
2.0
5.2
Positive Free Cash
Flow generation
Net Debt/Equity in FY20, an
improvement from 2.2 in FY19
Net Debt/EBITDA in FY20, an
improvement from 6.2 in FY19
Strategic
Objectives
Material Topics
Addressed
Key Risks
Considered
Stakeholder
Recommendations Addressed
SDGs
Focused
SBO 1
Resolution of CGPL coal
cost under-recovery
SBO 2
Deleveraging balance sheet
� Future ready
� Impact on business
due to change in Coal
tax or coal pricing
� Sustainable investing
� Availability of cost-
effective capital
� Sale of non-core assets
� Exit from international
joint venture to deleverage
balance sheet
� CGPL turned EBITDA
positive in FY20
� High leverage –
increased borrowings
over last few years
primarily due to
losses in CGPL
� Renewal of licence
of KPC mine in
Indonesia
I M PAC T O N OT H E R C A PI TA L S
Our performance in Financial Capital has a significant influence across all other capitals.
Natural Capital
Impact
� Deployment of robots to clear
solar panels, thereby reducing
maintenance capex
Intellectual Capital
Impact
� Installation of grid-scale,
battery-based energy storage
system in Rohini, New Delhi
(capex of ₹ 4 crore by TPDDL)
� Advance metering
infrastructure and installation
of Smart meters in Radio
Frequency (Mesh) network
(₹ 95 crore capex by TPDDL)
Financial
Capital
Human Capital
Impact
� ₹ 7.25 crore invested in human
resource upskilling, training
and development in FY20
Manufactured Capital
Impact
� ₹ 692 crore investment
in Renewable
Energy Capex in FY20
Social & Relationship Capital
Impact
� ₹ 39.97 crore spent on
CSR activities in FY20
O
v
e
r
v
i
e
w
O
u
r
E
m
p
h
a
s
i
s
o
n
V
a
u
e
l
O
u
r
V
a
l
u
e
-
c
r
e
a
t
i
o
n
P
a
r
a
d
g
m
i
S
t
a
t
u
t
o
r
y
R
e
p
o
r
t
s
i
F
n
a
n
c
i
a
l
S
t
a
t
e
m
e
n
t
s
114
The Tata Power Company Limited Integrated Annual Report 2019-20
Future ready for smart choices
115
Strategic focus areas
Economic value creation
Tata Power generated a positive economic value retained figure in FY20 with the reduction in operating costs, aided by the
successful implementation of robust cost control measures. The payment to providers of capital was also lower compared to
the level witnessed in FY18. Tata Power continues to meet its financial obligations towards suppliers, employees, lenders and
shareholders, governments and communities, in a timely manner.
Particulars (in ₹ crore)
Direct economic value generated1
Economic value distributed
Operating costs2
Employee wages & benefits
Payment to providers of capital3
Payments to governments4
Community Investments (CSR)
Economic value retained = Direct economic value generated less
economic value distributed
FY18
26,863
28,673
21,492
1,382
5,158
602
40
(1,810)
FY19
30,370
30,592
24,151
1,339
4,557
506
39
(222)
FY20
29,510
29,110
22,352
1,441
4,674
609
34
400
Notes:
1. Revenue generated including other income and movement in regulatory deferral balance
2. Operating cost including Cost of power purchased, Cost of Fuel, Transmission charges, Raw material consumed, Purchase of finished goods, increase/decrease in WIP,
depreciation & other expenses excluding CSR
3. Payment to providers of capital includes finance cost paid, dividend paid to shareholders & Distribution on Unsecured Perpetual Securities
4. Payments to government by country include income tax paid (net of refund received)
S U S TA I N A B I L I T Y O F B U S I N E S S
Economic value creation
� ₹ 1,294 crore y-o-y
Efficient Working
Capital Management
reduction in Net Debt
� Net cash flow from
� Consistent
improvement in Net
Debt/Equity from 2.8 in
FY17 to 2.0 in FY20
operations increasing
by ₹ 2,801 crore from
FY19 (+61%) from
₹ 4,574 crore in FY19 to
₹ 7,375 crore in FY20
� Released cash at
consolidated level
through factoring,
negotiations on
better credit terms,
liquidation of balances
with government
authorities and
process regularisation
Exiting Non-core Assets
Improving ROCE
� Steady improvement
in ROCE from 6.4%
in FY18 to 7.4%
in FY20, with the
aid of an optimal
capital structure
� Sold investment in
Cennergi Pty Limited
to Exxaro Resources
Ltd on 31st March
2020 for ₹ 737 crore
and recognised gain
of ₹ 533 crore, on
sale of investment
� Hedged receivable
against the
consideration to be
received with fair
value gain on the
hedge instrument
of ₹ 105 crore
being recognised as
'Other Income'
G R O W T H O F B U S I N E S S
Scale-up Renewables, Distribution
and Services Businesses
Less Capital-intensive
Business Model
� Adopt asset/debt light models
through financial engineering
and restructuring. Adopt debt-
light model for growth
� Increase share of renewables to
50-60% by 2025 through planned
investments in renewable space
� Tap state Discom privatisation
opportunities through
competitive bidding
� Invest in R&D to develop tech-
enabled consumer-centric home
automation solutions
Favourable Risk-return Profile
� Bids to be placed only in those
renewable projects that meet
the minimum IRR threshold
� Deleveraging balance sheet
with financial structuring
securing alignment with
statutory auditors and bankers
116
117
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choicesThe Tata Power Company Limited Integrated Annual Report 2019-20
Key financial trends and ratios
E B I T D A (₹ C R O R E )
N E T P R O F I T A F T E R TA X (₹ C R O R E )
FY 20
8,317
FY 19
7,235
28.5%
FY 20
1,316
24.2%
FY 19
2,606
FY 18
6,296
23.5%
FY 18
2,611
FY 17
6,193
22.4%
FY 17
1,100
EBITDA
EBITDA Margins
PAT
PAT Margins
R E T U R N O N AV E R AG E C A PI TA L E M PLOY E D (%)*
N E T D E B T (₹ C R O R E )
4.5%
8.7%
9.7%
4.0%
FY 20
FY 19
FY 18
FY 17
7.4
7.1
6.4
7.0
FY 20
32,695
43,559
44,853
13,658
2,794
FY 19
31,139
14,626
912
FY 18
22,356
44,609
23,865
45,655
1,612
FY 17
25,143
22,475
1,963
*Figures before exceptional items
Long term Debt
Short term Debt
Cash & Cash equivalent
N E T D E B T/ E Q U I T Y A N D N E T D E B T/
R E P O R T E D E B I T D A
FY 20
2.0x
5.2x
FY 19
2.2x
6.2x
FY 18
2.4x
FY 17
2.8x
7.1x
7.4x
Net Debt/Equity
Net Debt/Repoted EBITDA
118 The Tata Power Company Limited Integrated Annual Report 2019-20
119
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices GRI Content index
GRI Standard
Disclosure Title
Report Reference
Page Number
General Disclosures
Organisational Profile
GRI 102: General Disclosures
2016
102-1 Name of the organisation
About this report
102-2 Activities, brands, products,
and services
A leading market disruptor in sustainable
energy - Business at a glance
4
10
102-3 Location of headquarters
Back Cover
102-3, Back Cover
102-4 Location of operations
Board's Report- Annexure VIII
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organisation
Leadership with a difference -
Corporate governance
A leading market disruptor in sustainable
energy - Business at a glance
A leading market disruptor in sustainable
energy - Business at a glance
102-8 Information on employees and
other workers
Engaged, agile, future ready workforce -
Human Capital
102-9 Supply Chain
102-10 Significant changes to the
organisation and its supply chain
Strengthening our communities to build
sustainable societies - Social & Relationship
Capital
A leading market disruptor in sustainable
energy - Business at a glance
Strengthening our communities to build
sustainable societies - Social & Relationship
Capital
102-11 Precautionary principle or
approach
Building a future ready business -
Risk management
102-12 External initiatives
102-13 Membership of associations
102-14 Statement from senior
decision-maker
102-15 Key impacts, risks,
and opportunities
102-16 Values, principles, standards,
and norms of behaviour
102-17 Mechanisms for advice and
concerns about ethics
102-18 Governance structure
102-19 Delegating authority
In alignment with global goals - Tata Power’s
commitment to UNSDGs
A leading market disruptor in sustainable
energy - Business at a glance
Annexure - Our industry associations
Raising the bar in sustainable energy -
CEO & MD's message
Building a future ready business- Risk
management
A leading market disruptor in sustainable
energy - Business at a glance
Report on Corporate Governance
Report on Corporate Governance
Leadership with a difference -
Corporate governance
Report on Corporate Governance
Leadership with a difference -
Corporate governance
155-161
16
10,11,13
10
60
81
12 & 81
32
30
10
128
8 & 9
34 & 35
10
222
222
16 & 17
206-211
17
120
The Tata Power Company Limited Integrated Annual Report 2019-20
GRI Standard
Disclosure Title
Report Reference
Page Number
102-30 Effectiveness of risk management
processes
Building a future ready business -
Risk management
102-31 Review of economic,
environmental, and social topics
Building a future ready business -
Risk management
102-32 Highest governance body’s role in
sustainability reporting
About this report
102-33 Communicating critical concerns
Report on Corporate Governance
102-40 List of stakeholder groups
102-41 Collective bargaining agreements
102-42 Identifying and selecting
stakeholders
102-43 Approach to stakeholder
engagement
102-44 Key topics and concerns raised
102-45 Entities included in the
consolidated financial statements
102-46 Defining report content and topic
Boundaries
102-47 List of material topics
Trust with transparent communications -
Stakeholder Engagement
Engaged, agile, future ready workforce -
Human Capital
Trust with transparent communications -
Stakeholder Engagement
Trust with transparent communications -
Stakeholder Engagement
Trust with transparent communications -
Stakeholder Engagement
A leading market disruptor in sustainable
energy - Business at a glance
Annexure - Our subsidiaries
About this report
32
32
4
222
24 & 25
66
24 & 25
24
24 & 25
10
128
4
Integrated smart and sustainable solutions -
Materiality
28 & 29
102-48 Restatements of information
About this report
102-49 Changes in reporting
Integrated smart and sustainable solutions -
Materiality
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions
regarding the report
102-54 Claims of reporting in accordance
with the GRI Standards
102-55 GRI content index
102-56 External assurance
About this report
About this report
About this report
About this report
About this report
GRI Content Index
About this report
4
27
4
4
4
4
4
120-127
4
Topic Specific Disclosures
Manufactured Capital
Increase in renewables portfolio
EU 1
Installed capacity, broken down by
primary energy source and by regulatory
regime
The future of energy infrastructure -
Manufactured Capital
42
121
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
GRI Content index
GRI Standard
Disclosure Title
Report Reference
Page Number
Operational Efficiency
G4 DMA
EU 2
EU 12
Management approach to ensure short
and long-term electricity availability and
reliability
Net energy output broken down by
primary energy source and by regulatory
regime (Cost plus, Bid and PPA)
Transmission and distribution losses as a
percentage of total energy
Intellectual Capital
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its boundary
The future of energy infrastructure -
Manufactured Capital
103-2 The management approach and its
components
Driving change through innovation -
Intellectual Capital
103-3 Evaluation of the management
approach
Innovation in process, service & solutions
EU 8
Human Capital
Research and development activity and
expenditure aimed at providing reliable
electricity and promoting sustainable
development
Driving change through innovation -
Intellectual Capital
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its boundary
103-2 The management approach and its
components
Engaged, agile, future ready workforce -
Human Capital
103-3 Evaluation of the management
approach
Human Rights
GRI 402: Labour management
relations
402-1 Minimum notice periods regarding
operational changes
GRI 405: Diversity and equal
opportunity
405-1 Diversity of governance bodies and
employees
GRI 410: Security Practices
405-2 Ratio of basic salary and
remuneration of women to men
410-1 Security personnel trained in
human rights policies or procedures
GRI 412: Human Rights
Assessment
412-2 Employee training on human rights
policies or procedures
Engaged, agile, future ready workforce -
Human Capital
42
43
45
52
52, 54 & 56
52, 54 & 57
52-57
58
60
61
61
16 & 60
67
66
66
122
The Tata Power Company Limited Integrated Annual Report 2019-20
GRI Standard
Disclosure Title
Report Reference
Page Number
Training, Education and Development
GRI 404: Training and
Development
GRI 404-1:Average hours of training per
year per employee
EU: Employment
Occupational Health & Safety
GRI 403: Occupational Health
& Safety
GRI 404-2: Programs for upgrading
employee skills and transition assistance
programs
GRI 404-3: Percentage of employees
receiving regular performance and career
development reviews
EU 14: Programs and processes to ensure
the availability of a skilled workforce
EU 18: Percentage of contractor and
subcontractor employees that have
undergone relevant health and safety
training
403-2 Types of injury and rates of injury,
occupational diseases, lost days, and
absenteeism, and number of work-related
fatalities
403-3 Workers with high incidence or high
risk of diseases related to their occupation
403-4 Health and safety topics covered in
formal agreements with trade unions
Engaged, agile, future ready workforce -
Human Capital
Engaged, agile, future ready workforce -
Human Capital
Social & Relationship Capital
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its boundary
103-2 The management approach and its
components
103-3 Evaluation of the management
approach
Strengthening our communities to build
sustainable societies- Social & Relationship
Capital
GRI 414: Supplier social
assessment
414-1 New suppliers that were screened
using social criteria
414-2 Negative social impacts in the
supply chain and actions taken
Strengthening our communities to build
sustainable societies- Social & Relationship
Capital
63
64
61
62 & 63
64
69
69
64
70, 72, 73 & 81
72, 73 & 81
72 & 73
81
81
123
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices GRI Content index
GRI Standard
Disclosure Title
Report Reference
Page Number
Customer relationship
GRI 416: Customer Health
and Safety
GRI 416-1: Assessment of the health and
safety impacts of product and service
categories
GRI 416-2: Incidents of non-compliance
concerning the health and safety impacts
of products and services
GRI 417: Marketing and
Labelling
GRI 417-1 Requirements for product and
service information and labelling
GRI 418: Customer Privacy
Demand-side management
G4 DMA
GRI 417-2 Incidents of non-compliance
concerning product and service
information and labelling
GRI 417-3 Incidents of non-compliance
concerning marketing communications
GRI 418-1 Substantiated complaints
concerning breaches of customer privacy
and losses of customer data
Demand-side management programs
including residential, commercial,
institutional and industrial programs Net
Investment made in the DSM Programs
& corresponding MWh saved or MW load
shifted
Details of progress achieved on initiatives
such as;
i. Club Enerji
ii. Be Green"
Strengthening our communities to build
sustainable societies - Social & Relationship
Capital
Strengthening our communities to build
sustainable societies - Social & Relationship
Capital
Natural Capital
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its boundary
103-2 The management approach and its
components
Leading the New Energy World -
Natural Capital
103-3 Evaluation of the management
approach
72 & 73
17 & 73
73
17 & 73
17 & 73
72
78 & 79
95
98, 100, 110
98, 100, 110
98, 100, 110
Resource availability
GRI 301: Materials
GRI 301-1 Materials used by weight or
volume
Leading the New Energy World -
Natural Capital
104
124
The Tata Power Company Limited Integrated Annual Report 2019-20 GRI Standard
Disclosure Title
Report Reference
Page Number
Carbon emission management
GRI 302: Energy
GRI 302-1 Energy consumption within the
organisation
GRI 302-3 Energy intensity
GRI 302-4 Reduction of energy
consumption
GRI 305: Emissions
GRI 305-1 Direct (Scope 1) GHG emissions
Leading the New Energy World -
Natural Capital
GRI 305-2 Energy indirect (Scope 2) GHG
emissions
GRI 305-3 Other indirect (Scope 3) GHG
emissions
GRI 305-4 GHG emissions intensity
GRI 305-5 Reduction of GHG emissions
GRI 305-7 Nitrogen oxides (NOX), sulphur
oxides (SOX), and other significant air
emission
Water
GRI 303: Water and Effluents
GRI 303-1 Water withdrawal
GRI 303-2 Water sources significantly
affected
Leading the New Energy World -
Natural Capital
GRI 303-3 Water recycled and reused
102
104
103
101
101
101
101
101 & 103
101
106 & 107
106 & 107
105 & 107
107
108 & 109
109
108 & 109
111
Waste Management
GRI 306: Effluents and Waste
Biodiversity
GRI 304: Biodiversity
GRI 306-1 Water discharge by quality and
destination
GRI 306-2 Waste by type and disposal
method
GRI 306-3 Significant spills
GRI 306-4 Transport of hazardous waste
GRI 304-1 Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity value
outside protected areas
GRI 304-3 Habitats protected or restored
GRI 304-4 IUCN Red List species and
national conservation list species with
habitats in areas affected by operations
Leading the New Energy World -
Natural Capital
Leading the New Energy World -
Natural Capital
111, 112, 113
112, 113
125
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices GRI Content index
GRI Standard
Disclosure Title
Report Reference
Page Number
Financial Capital and MDA
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its boundary
103-2 The management approach and its
components
103-3 Evaluation of the management
approach
Management Discussion & Analysis
GRI 201: Economic
Performance 2016
201-1 Direct economic value generated
and distributed
Creating shared economic value -
Financial Capital
Future ready
Non-GRI
Sustainable investing
Non-GRI
Frequency of strategy review and
planning
Our blueprint for the future -
Our strategy
Reallocation of capital by divestment
of coal business to transition to more
sustainable fuels
Our blueprint for the future - Our strategy
The future of energy infrastructure -
Manufactured Capital
Impact on business due to change in Coal tax or coal pricing
Non-GRI
Investments in renewable energy to
reduce impact from changes in coal tax
Creating shared economic value -
Financial Capital
179-184
184-185
185-193
117
22
23
46, 47, 50
116
Corporate Governance
GRI 205: Anti-Corruption
GRI 206: Anti-competitive
Behaviour
GRI 205-2 Communication and training
about anti-corruption policies and
procedures
GRI 205-3 Confirmed incidents of
corruption and actions taken
GRI 206-1 Legal actions for anti-
competitive behaviour, anti-trust, and
monopoly practices
GRI 307: Environmental
Compliance 2016
307-1: Non-compliance with
environmental laws and regulations
GRI 419: Socioeconomic
Compliance 2016
419-1: Non-compliance with laws and
regulations in the social and economic
area
Report on Corporate Governance
200, 227
Leadership with a difference -
Corporate governance
Leadership with a difference -
Corporate governance
Leadership with a difference -
Corporate governance
Leadership with a difference -
Corporate governance
17
17
17
17
126
The Tata Power Company Limited Integrated Annual Report 2019-20 GRI Standard
Disclosure Title
Report Reference
GRI 406: Non Discrimination
406-1 Incidents of discrimination and
corrective actions taken
GRI 407: Freedom of Association
and Collective Bargaining
GRI 408: Child Labour
407-1 Operations and suppliers in which
the right to freedom of association and
collective bargaining may be at risk
408-1 Operations and suppliers at
significant risk for incidents of child labour
GRI 409: Forced and
Compulsory labour
409-1 Operations and suppliers at
significant risk for incidents of forced or
compulsory labour
Leadership with a difference -
Corporate governance
Engaged, agile, future ready workforce -
Human Capital
Leadership with a difference -
Corporate governance
Leadership with a difference -
Corporate governance
Engaged, agile, future ready workforce -
Human Capital
Leadership with a difference -
Corporate governance
Engaged, agile, future ready workforce -
Human Capital
GRI 411: Rights of Indigenous
Peoples
411-1 Incidents of violations involving
rights of indigenous peoples
Leadership with a difference -
Corporate governance
Page Number
17 & 66
17
17 & 66
17 & 66
17
127
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices Integrated Report Annexures
Annexure 1 - Our Industry Associations1
The Tata Power Company Limited - Memberships
National Safety Council
Confederation of Indian Industry
Electrical Research and
Development Association
IMC Chambers of
Commerce and Industry
Association of Power Producer
The Institute of Internal Auditors
Indian Energy Exchange
Indian Wind Power Association
Central Power Research Institute
Annexure 2 - Our Subsidiaries/Joint Ventures/Associates2
The Tata Power Company Limited - Domestic subsidiaries
Af-Taab Investment Company Limited
Chirasthayee Saurya Limited
Coastal Gujarat Power Limited
Indo Rama Renewables Jath Limited
Dreisatz Mysolar24 Private Limited
Industrial Energy Limited#
MI Mysolar24 Private Limited
NDPL Infra Limited
Nelco Network Products Limited
Poolavadi Windfarms Limited
Nivade Windfarms Limited
Powerlinks Transmission Limited#
Supa Windfarms Limited
Tata Power Green Energy Limited
TCL Ceramics Limited
(formerly known as Tata Ceramics Ltd)
Tata Power Jamshedpur Distribution
Limited
Clean Sustainable Solar Energy
Private Limited
Dugar Hydro Power Limited#
Maithon Power Limited
NELCO Limited
Northwest Energy Private Limited
Solarsys Renewable
Energy Private Limited
Tata Power Delhi Distribution Limited
Tata Power Renewable Energy Limited
Tata Power Solar Systems Limited
Tata Power Trading Company Limited
Tatanet Services Limited
TP Ajmer Distribution Limited
TP Kirnali Limited
TP Solapur Limited
Walwhan Energy RJ Limited
Vagarai Windfarm Limited
Walwhan Solar AP Limited
Walwhan Solar Energy GJ Limited
Walwhan Solar KA Limited
Walwhan Solar MP Limited
Walwhan Solar RJ Limited
Walwhan Urja India Limited
Walwhan Solar PB Limited
Walwhan Solar TN Limited
Walwhan Wind RJ Limited
1GRI 102-13
2GRI 102-45
#Classified as Joint Ventures as per Indian Accounting Standards (Ind AS)
The Tata Power Company Limited - Foreign Subsidiaries
TP Renewable Microgrid Limited
(Formerly known as Industrial Power
Utility Limited)
Walwhan Renewable Energy Limited
Walwhan Solar BH Limited
Walwhan Solar MH Limited
Walwhan Solar Raj Limited
Walwhan Urja Anjar Limited
Bhira Investments Pte Limited
(Formerly known as Bhira
Investments Limited)
Bhivpuri Investments Limited
Far Eastern Natural Resources LLC
Trust Energy Resources Pte. Limited
Tata Power International Pte. Limited
Khopoli Investments Limited
PT Sumber Energi Andalan Tbk
128
AnnexuresThe Tata Power Company Limited Integrated Annual Report 2019-20 The Tata Power Company Limited - Joint Ventures
Adjaristsqali Georgia LLC
Adjaristsqali Netherlands B.V
Candice Investments Pte. Limited
IndoCoal KPC Resources (Cayman) Limited IndoCoal Resources (Cayman) Limited
Itezhi Tezhi Power Corporation Limited
Koromkheti Georgia LLC
Koromkheti Netherlands B.V
LTH Milcom Pvt. Limited
Mandakini Coal Company Limited
Prayagraj Power Generation
Company Limited
PT Antang Gunung Meratus
PT Arutmin Indonesia
PT Citra Prima Power
PT Baramulti Sukessarana Tbk
PT Citra Kusuma Perdana
PT Dwikarya Prima Abadi
PT Guruh Agung
PT Indocoal Kalsel Resources
PT Indocoal Kaltim Resources
PT Kalimantan Prima Power
PT Kaltim Prima Coal
PT Mitratama Usaha
PT Marvel Capital Indonesia
PT Mitratama Perkasa
PT Nusa Tambang Pratama
Renascent Ventures Private Limited.
Resurgent Power Ventures Pte. Limited
Solace Land Holding Limited
Tubed Coal Mines Limited
The Tata Power Company Limited - Associates
Brihat Trading Pte. Limited
Dagachhu Hydro Power
Corporation Limited
Tata Projects Limited
The Associated Building Co. Limited
Yashmun Engineers Limited
129
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm
Board’s Report
To the Members,
The Directors are pleased to present to you the Integrated Report [prepared as per the framework set forth by the
International Integrated Reporting Council (IIRC)] and One Hundred and First Annual Accounts on the business and operations of
your Company along with the audited Financial Statements of Account for the financial year ended 31st March 2020.
1. Financial Results
Sl.
No.
Particulars
Less: Operating Expenditure
(a) Net Sales / Income from Other Operations*
(b)
(c) Operating Profit
(d)
Less: Forex Loss
(e) Add: Other Income
(f)
Less: Finance Cost
(g) Profit before Depreciation and Tax
(h)
(i)
(j)
(k)
(l)
(m) Profit/ (Loss) before Tax
(n) Add/(Less): Tax Expenses or Credit
(o) Net Profit after Tax from Continuing Operations
Profit/ (Loss) before Tax from Discontinued Operations
(p)
(q) Add/(Less): Tax Expenses or Credit from Discontinued
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
Add/(Less): Exceptional Item
Operations
(r) Net Profit/(Loss) after Tax from Discontinued Operations
(s) Net Profit for the year
(t) 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 for the year
(w) 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
FY20
7,075
4,794
2,281
11
583
1,510
1,343
686
657
NIL
657
(306)
351
(208)
559
(443)
32
(411)
148
148
NIL
(53)
95
95
NIL
FY19
8,109
5,302
2,807
11
516
1500
1,812
633
1,179
NIL
1,179
1,168
2,347
452
1,895
(192)
66
(126)
1,769
1,769
NIL
(45)
1,724
1,724
NIL
Figures in H crore
Consolidated
FY20
28,948
21,078
7,870
116
563
4,494
3,823
2,634
1,189
953
2,142
226
2,368
641
1,727
(443)
32
(411)
1,316
1,018
299
836
2,153
1,856
297
FY19#
29,984
22,995
6,989
141
386
4,170
3,064
2,393
671
1,402
2,073
1,746
3,819
1,087
2,732
(192)
66
(126)
2,606
2,356
250
164
2,770
2,521
249
2. Financial Performance and the State of
The Company’s Affairs
2.1. Consolidated
On a consolidated basis, the Operating Revenue was at
H 28,948 crore in FY20 compared to H 29,984 crore in FY19.
The decrease was mainly due to delay in solar EPC projects
on account of COVID-19, lower power demand and lower
Free On Board (FOB) price of coal. The operating profit
for FY20 recorded 13% growth over FY19 mainly due to
lower fuel under recovery in Mundra on account of lower
FOB price of coal, higher coal blending and better coal
sourcing. Finance costs increased from H 4,170 crore to
H 4,494 crore mainly due to impact of IND-AS 116 and
capacity addition in the renewables business. The profits
from Joint Ventures (JV) and Associates were lower mainly
on account of lower profits from Indonesian coal mines
due to lower coal prices.
The Consolidated Profit after tax in FY20 was at H 1,316
crore compared to H 2,606 crore in FY19 mainly due to
exceptional items of H 226 crore in FY20 as compared to
130
The Tata Power Company Limited Integrated Annual Report 2019-20
3.
H 1,746 crore in FY19. The current year exceptional items
includes gain on sale of investment in joint venture
in South Africa (“Cennergi“), reversal of
impairment
provision pertaining to Georgia investment partly offset
by the adverse impact of the standby order passed
by the Supreme Court and impairment provisions in
Strategic Engineering Division (SED). The exceptional item
for previous year includes gain on sale of investments
in associate companies viz. Tata Communications
Limited
(PFL)
partially offset by impairment provisions of Rithala plant.
Detailed description of exceptional items is provided
in Standalone and Consolidated Financial Section of
Management Discussion & Analysis (MD&A).
(TCL) and Panatone Finvest Limited
2.2. Standalone
On a standalone basis, the Operating Revenue stood
at H 7,075 crore in FY20 compared to H 8,109 crore in
FY19. The decrease was mainly due to lower generation
on account of lower demand from procurers, lower
transmission charges as per the MERC tariff order and
impact of the truing up order passed by MERC. The profit in
FY20 was H 148 crore as compared to H 1,769 crore in FY19.
The decrease in the profit was mainly due to gain on sale of
investment in TCL and PFL in FY19.
Refer to Management Discussion and Analysis
more details.
for
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.
2.3. Annual Performance
Details of the Company’s annual financial performance
as published on the Company’s website and presented
during the Analyst Meet, after declaration of annual
results, can be accessed using the following link: https://
www.tatapower.com/pdf/investor-relations/analyst-
presentation-may-20.pdf.
2.4. Integrated Report
Improvement in Leverage Ratios and
Cash from Operations
In line with the strategic intent of the Company to
deleverage the Balance Sheet, your Company’s Net Debt/
Reported EBIDTA ratio has shown marked improvement
from 6.2 to 5.2 from FY19 to FY20 on a consolidated level.
Net Debt/Equity on a consolidated level has improved
from 2.2 to 2.0 from FY19 to FY20. This year saw a good
performace in terms of cash generated from operations
with an increase of 61% from FY19 (FY20-₹ 7,375 crore
vis-à-vis FY19-₹ 4,574 crore) due to prudent working
capital management employed by your Company along
with robust operating performance. As a result, reported
EBIDTA of your Company has also increased by 15%
(FY20-₹ 8,317 crore compared to FY19- ₹ 7,235 crore) on a
consolidated basis. A brief discussion on the highlights of
financial performance of your Company and financial and
return ratios is presented in the financial capital section of
Integrated Report (pages 114-119) as well as page 3 of the
Integrated Report.
4. Management Discussion and Analysis
The Management Discussion and Analysis, as required
in terms of the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (Listing Regulations), is annexed to
this Report.
5. Dividend
Based on the Company’s performance, the Directors of
your Company recommend a dividend of 155% (₹ 1.55 per
share of ₹ 1 each) (previous year - 130%), subject to the
approval of the Members.
The Board
parameters laid down in the Dividend Policy.
recommended dividend based on the
Pursuant to the Finance Act, 2020, dividend income will
in the hands of the shareholders w.e.f.
be taxable
1st April 2020 and the Company is required to deduct tax
at source (TDS) from dividend paid to the Members at
prescribed rates as per the Income-tax Act, 1961.
In keeping with the Company’s commitment to society,
your Company this year transitioned from compliance
based reporting to governance based reporting by
adopting the Integrated Reporting framework developed
by International Integrated Reporting Council.
The Register of Members and Share Transfer Books of the
Company will remain closed from Thursday, 16th July 2020
to Thursday, 30th July 2020 (both days inclusive) for the
purpose of payment of the dividend for the financial year
ended 31st March 2020.
We present to you our First Integrated Report which
highlights the Company’s efforts during the year which
contribute to long term sustainability and value creation,
paving the way for a better tomorrow.
top 500
According to Regulation 43A of the Listing Regulations,
the
listed entities based on market
capitalisation, calculated as on 31st March of every financial
year, are required to formulate a dividend distribution
131
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
policy which shall be disclosed in their annual reports and
on their websites. Accordingly, the Dividend Policy of the
Company is provided in Annexure-I.
7. Reserves
As per Standalone Financials, the net movement in the
reserves of the Company for FY20 and FY19 is as follows:
Figures in ₹ crore
The Dividend Policy of the Company can also be accessed
using the following link: https://www.tatapower.com/pdf/
aboutus/dividend-policy.pdf.
Particulars
6. Current Business
Your Company has presence across the entire value
chain of power business viz Generation, Transmission,
Distribution, Power Trading, Power Services, Coal Mines
and Logistics, Solar PV manufacturing and associated
Engineering, Procurement and Construction services (EPC),
new business initiatives like solar rooftop, solar pumps,
EV charging, home automation and microgrid.
As on 31st March 2020, your Company has an installed
capacity of 12,742 MW, out of which 3,883 MW is from
'Clean and Green sources' (Hydro, waste heat recovery,
wind and solar) which constitute about 30% of the
total portfolio.
Your Company has decided to move away
from
conventional coal based power plants with a commitment
to reduce carbon footprint and dependency on fossil fuel
based resources like coal and gas and focus on renewable
generation, foraying into new business initiatives like solar
rooftop, solar pumps, EV charging, home automation as
well as tapping into opportunities to widen its distribution
network and broaden its customer base. Another important
venture is Microgrids where it has test charged around 18
microgrid projects as on 31st March 2020 with another
55 projects in pipeline in line with its commitment to
provide the rural population with affordable, clean and
reliable power.
Limited
Focussing on achieving growth in an environmentally
responsible and sustainable manner, your Company
has commissioned around 312 MW of solar PV
and rooftop projects through Tata Power Renewable
Energy
(TPREL) and Tata Power Solar
Systems Limited (TPSSL) in FY20 while commissioning
another 178 MW hydro project overseas in Georgia.
Your Company's subsidiary TPSSL has achieved a portfolio
of 421 MW of solar rooftop projects with an order book of
another 1,580 MW EPC projects amounting to a value of
₹ 7,000 crore as on 31st March 2020. In the solar products
domain, your Company is one of the leading players,
with a portfolio of 25,000 solar agricultural pumps in
seven states Details of your Company’s business portfolio
has been discussed in a greater detail in the section on
Manufactured Capital of Integrated Report (pages 40-51).
132
Capital Redemption Reserve
Capital Reserve
Securities Premium
Debenture Redemption Reserve
General Reserve
Retained Earnings
Equity Instruments through OCI
Statutory Reserve
As at
31st
March
2020
2
62
5,635
297
3,854
3,027
(45)
660
As at
31st
March
2019
2
62
5,635
422
3,854
2,954
331
660
The Board of Directors has decided to retain the entire
amount of profits for FY20 in P&L account.
8. Subsidiaries/Joint Ventures/Associates
As on 31st March 2020, the Company had 54 subsidiaries
(40 are wholly owned subsidiaries), 30 Joint Ventures
(JVs) and 5 Associates. Of the subsidiaries, 3 companies
have been classified as JVs under Indian Accounting
Standards (Ind AS).
During the year under review, the following changes
occurred in your Company’s holding structure:
a)
Energy Eastern Pte. Limited (subsidiary) merged with
Trust Energy Resources Pte. Limited.
b)
JV
in erstwhile
The entire shareholding
i.e.
Cennergi Pty. Limited and its 2 subsidiaries was sold
during the year under review. The proceeds of the
divestment will be utilised towards reducing the debt
in consolidated Tata Power in FY21 in line with the
strategic objective of your Company to deleverage
the Balance Sheet.
c) Gamma Land Holdings Limited, Beta Land Holdings
Limited and Ginger Land Holdings Limited are three
JVs which ceased to exist during the year under review.
d)
e)
f)
Renascent Power Ventures Private Limited, an
associate of your Company, acquired 75.01% equity
stake
in Prayagraj Power Generation Company
Limited.
TP Kirnali Limited was incorporated as wholly owned
subsidiary of TPREL.
TP Solapur Limited was incorporated as wholly owned
subsidiary of TPREL.
The Tata Power Company Limited Integrated Annual Report 2019-20Board's Report
A report on the performance and financial position of each
of the subsidiaries, JVs and Associates has been provided
in Form AOC-1 as per Section 129(2) of the Companies Act,
2013 (the 'Act").
vi.
they have devised proper systems to ensure
compliance with the provisions of all applicable
laws and that such systems are adequate and
operating effectively.
Further, pursuant to the provisions of Section 136 of the
Act, the financial statements of the Company, consolidated
financial statements along with relevant documents
and separate audited financial statements in respect
of subsidiaries, are available on the website of the
Company https://www.tatapower.com/investor-relations/
annual-reports-subsidiaries.aspx.
The policy for determining material subsidiaries of
the Company has been provided in the following link:
https://www.tatapower.com/pdf/aboutus/policy-for-
determining-material-subsidiaries.pdf.
9. Directors’ Responsibility Statement
Based on the framework of internal financial controls and
compliance systems established and maintained by the
Company, the work performed by the internal, statutory
and secretarial auditors and external consultants, including
the audit of internal financial controls over 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 internal financial controls
were adequate and effective during FY20.
Pursuant to Section 134(5) of the Companies Act, 2013 (the
'Act'), the Board of Directors, to the best of its knowledge
and ability, confirm that:
i.
in the preparation of the annual accounts, the
applicable accounting standards have been followed
and there are no material departures;
ii.
iii.
iv.
v.
they have selected such accounting policies and
applied them consistently and made judgements and
estimates that are reasonable and prudent so as to
give a true and fair view of the state of affairs of the
Company at the end of the financial year and of the
profit of the Company for that period;
they have taken proper and sufficient care for the
maintenance of adequate accounting records in
accordance with the provisions of the Act for
safeguarding the assets of the Company and for
preventing and detecting
fraud and other
irregularities;
they have prepared the annual accounts on a going
concern basis;
they have laid down internal financial controls to be
followed by the Company and such internal financial
controls are adequate and operating effectively;
10. Directors and Key Managerial Personnel
Change in Board Composition
Mr. Ashok S. Sethi superannuated as COO & Executive
Director of the Company effective close of business hours
on 30th April 2019.
Mr. Ashok Sinha was appointed as Additional Director
and Independent Director of the Company effective
2nd May 2019. His appointment was approved by the
Members at the 100th AGM of the Company held on
18th June 2019.
Mr. Deepak M. Satwalekar and Mr. Nawshir H.
Mirza completed their tenure as Independent Directors
of the Company on 12th August 2019. The Board places
on record its deep sense of appreciation of the valuable
contribution made to the Company by them during their
respective tenures.
the
requirements of
accordance with
the
In
the Company’s Articles of Association,
Act and
Mr. Hemant Bhargava retires by rotation and is eligible for
re-appointment. Members’ approval is being sought at the
ensuing AGM for his re-appointment.
During the year under review, the Non-Executive Directors
(NEDs) of the Company had no pecuniary relationship or
transactions with the Company, other than sitting fees,
commission and reimbursement of expenses incurred
by them, if applicable, for the purpose of attending
Board/Committee meetings of the Company.
Independent Directors
In terms of Section 149 of the Act, Ms. Anjali Bansal,
Ms. Vibha Padalkar, Mr. Sanjay V. Bhandarkar,
Mr. Kesava M. Chandrasekhar and Mr. Ashok Sinha are
the Independent Directors of the Company. The Company
Independent
has received declarations from all the
the criteria
they meet
Directors confirming
of
independence as prescribed under the Act and
the Listing Regulations.
that
In terms of Regulation 25(8) of the Listing Regulations,
they have confirmed that they are not aware of any
circumstances or situation which exists or may be
reasonably anticipated that could
impact
their ability to discharge their duties. Based upon the
declarations received from the Independent Directors, the
impair or
133
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board of Directors has confirmed that they meet the criteria
of independence as mentioned under Regulation 16(1)(b)
of the Listing Regulations and that they are independent
of the management.
A declaration on compliance with Rule 6(3) of the
Companies (Appointment and Qualification of Directors)
Rules, 2014, along with a declaration as provided in
issued by
the Notification dated October 22, 2019,
the Ministry of Corporate Affairs (MCA), regarding the
requirement relating to enrollment in the Data Bank for
Independent Directors, has been received from all the
Independent Directors, along with declaration made
under Section 149(6) of the Act.
Number of Board Meetings
Four Board Meetings were held during the year under
review. For further details, please refer Report on Corporate
Governance, which forms a part of this Report.
the Key Managerial Personnel
Key Managerial Personnel
In terms of Section 203 of the Act, the following
the
are
Company as on 31st March 2020:
•
•
•
Mr. Praveer Sinha, CEO & Managing Director
Mr. Ramesh N. Subramanyam, Chief Financial Officer
Mr. Hanoz M. Mistry, Company Secretary
(KMP) of
11. Annual Evaluation of Board Performance
and Performance of its Committees and
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 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 by the
Board 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 broadly based on the Guidance
Note on Board Evaluation issued by the Securities and
Exchange Board of India on January 5, 2017.
In a separate meeting of
Independent Directors,
performance of Non-Independent Directors, the Board as
a whole and the Chairman of the Company was evaluated,
taking into account the views of the Executive Director
and NEDs.
134
The Nomination and Remuneration Committee (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 a subsequent Board meeting, the performance of the
Board, its Committees, and individual Directors was also
discussed. Performance evaluation of
Independent
Directors was done by the entire Board, excluding the
Independent Director being evaluated.
12. Policy on Board Diversity and Director
Attributes and Remuneration Policy for
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 for determining qualification,
attributes and independence of a Director.
positive
is also responsible for recommending to
The NRC
the Board, a policy relating to the
remuneration
the Directors, Key Managerial Personnel and
of
other employees.
requirement,
line with
the Board has adopted
the Policy on Board
Diversity and Director Attributes, which is provided in
Annexure-II to this Report and Remuneration Policy
for Directors, Key Managerial Personnel and other
employees of the Company, which is reproduced in
Annexure - III to this Report.
this
In
13. 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
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.
The Company has adopted a Code of Conduct for its
employees including the Managing Director and the
Executive Directors. In addition, the Company has adopted
a Code of Conduct for its Non-Executive Directors which
The Tata Power Company Limited Integrated Annual Report 2019-20Board's Report
suitably
includes Code of Conduct for Independent Directors
which
of
incorporates
Independent Directors as laid down in the Act. The same
can be accessed using the following link: https://www.
tatapower.com/pdf/aboutus/Code-of-Conduct-NEDs.pdf.
duties
the
All Senior Management personnel have affirmed
compliance with the Tata Code of Conduct (TCoC).
The CEO & Managing Director has also confirmed and
is enclosed as
certified the same. The certification
Annexure-I
on
the
Corporate Governance.
Report
end
the
of
at
14. Conservation of Energy and Technology
is committed
Absorption
Your Company
to Conservation of
Energy through various Demand Side Management
initiatives as well as fostering energy efficient appliances at
highly discounted prices among your customers. In FY20,
more than 6000 Mwh of energy savings have occurred due
to Energy Saving programme in FY20 in Mumbai license
area. These initiatives have been discussed in greater
details in 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, which is attached as Annexure - IV to this
Report.
15. Corporate Governance
Pursuant to Regulation 34 of the Listing Regulations,
Report on Corporate Governance along with
the
certificate from a Practicing Company Secretary certifying
compliance with conditions of Corporate Governance is
annexed to this Report.
16. 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 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.
for directors and employees
Pursuant to Section 177(9) of the Act, a vigil mechanism
was established
to
instances of unethical
report to the management
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. No person has been denied access
to the Chairman of the Audit Committee.
formed
17. Risk Management
Your Board has
a Risk Management
Committee to frame, implement and monitor the risk
management plan for the Company. The Committee
is responsible for monitoring and reviewing the risk
management plan and ensuring its effectiveness. The Audit
Committee has additional oversight in the area of financial
risks and controls. The major risks identified by the
businesses and functions are systematically addressed
through mitigating actions on a continuing basis.
Furthermore, your Company has set up a robust internal
audit function which reviews and ensures sustained
(IFC)
effectiveness of
its work.
by adopting a systematic approach
risk
The development
management policy has been
the
Integrated Report (pages 32-33).
implementation of
in
Internal Financial Controls
covered
and
to
Internal Financial Control Systems and their Adequacy
The Company’s internal control systems are commensurate
with the nature of its business, the size and complexity of
its operations and such internal financial controls with
reference to the Financial Statements are adequate.
Refer Integrated Report (page 34).
18. Details of Significant and Material Orders
No significant and materials orders were passed by the
regulators or courts or tribunals impacting the going
concern status and company’s operations in future.
19. Statutory and Branch Auditors
M/s. S R B C & CO. LLP (SRBC) (ICAI Firm Registration Number:
324982E/E300003), who is the statutory auditor of your
Company, holds office until the conclusion of 103rd AGM to
be held in the year 2022.
to place
requirement
the matter
relating
The
to appointment of auditors
ratification by
Members at every AGM has been done away with by the
Companies (Amendment) Act, 2017 with effect from 7th
May 2018. Accordingly, no resolution is being proposed
for ratification of appointment of statutory auditors at
the ensuing AGM.
for
The Company has in its Notice sought approval from
the Members for passing a resolution vide Item No. 6
authorizing the Board to appoint Branch Auditors of
any Branch office of the Company, whether existing or
which may be opened/acquired, outside India, to act as
Branch Auditors.
20. Statutory Auditors’ Report
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.
135
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
The Statutory Auditor’s report does not contain any
qualifications, reservations, adverse remarks or disclaimers.
The Statutory Auditors were present in the last AGM.
21. Cost Auditor and Cost Audit Report
Your Board has appointed M/s Sanjay Gupta and Associates,
Cost Accountants
(Firm Registration No.000212), as
Cost Auditors of the Company for conducting cost audit for
the FY21. The Company has in its Notice sought approval
from the Members for passing a resolution vide Item No. 7
for ratifying the remuneration payable to the Cost Auditors
for FY21. Maintenance of cost records as specified by the
Central Government under Section 148 (1) of the Act is not
applicable to the Company.
22. Secretarial Audit Report
M/s. Makarand M. Joshi & Co., Company Secretaries
(Peer Review Number: P2009MH007000), were appointed
as Secretarial Auditors of your Company to conduct
a Secretarial Audit of records and documents of the
Company for FY20. 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
remarks or
reservations or adverse
qualifications,
disclaimers. The Secretarial Audit Report is provided in
Annexure-V to this Report.
The Company has devised proper systems to ensure
the provisions of all applicable
compliance with
Secretarial Standards
Institute of
Company Secretaries of India and that such systems are
adequate and operating effectively.
issued by
the
the
As per the requirements of Listing Regulations, Practicing
Company Secretaries of
respective material
subsidiaries of
the Company have undertaken
secretarial audits of the material subsidiaries for FY20.
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.
23. Loans, Guarantees, Securities 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.
Policy on Related Party Transactions and the same can be
accessed using the following link: https://www.tatapower.
com/pdf/aboutus/rpt-policy-framework-guidelines.pdf.
During the year under review, all transactions entered
into with
the
Audit Committee. Details of Related Party Transactions as
per AOC-2 are provided in Annexure-VI to this Report.
related parties were approved by
25. Sustainability
The Company has continued its journey of practising
sustainability through its core value of Leadership with
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
it. Your Company
various awards bestowed upon
in
was ranked 1st among power sector companies
Futurescape National Responsible Business Ranking for
Sustainability and Corporate Social Responsibility (CSR)
released in November 2019 and won National Volunteering
in
Award
February 2020. The Company also bagged the prestigious
global Edison Award
for promoting Energy and
Resource Conservation under Club Enerji.
for promoting Employee Volunteering
25.1 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 key
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 impacting 27.10 lakh beneficiaries across
Tata Power group companies in FY20 (including around
14.06 lakh beneficiaries on a Standalone basis).
The CSR policy of the Company has been provided on the
Company’s website at https://www.tatapower.com/pdf/
aboutus/csr-policy-14.pdf.
its key subsidiaries are described
The Company’s standalone CSR spend for FY20 stood at
₹ 3.80 crore against the 2% CSR obligation of ₹ 3.04
crore. Details of the consolidated CSR activities of your
Company and
in
Social and Relationship Capital of Integrated Report (pages
82-93) as well as in the Business Responsibility Report (BRR).
The annual report on CSR activities (standalone) is provided
in Annexure-VII to this Report. On overall basis, the
Tata Power group entities' expenditure on CSR activities
stood at ₹ 39.97 crore against the CSR obligation of ₹ 33.30
crore (calculated as per Section 135 of the Act) in FY20.
24. Related Party Transactions
25.2 Affirmative Action
In
line with the requirements of the Act and the
Listing Regulations, the Company has formulated a
Under its AA program, your Company continued to focus
on upliftment of Dalit and tribal communities through the
136
The Tata Power Company Limited Integrated Annual Report 2019-20Board's Report
defined Es under AA viz. Employment, Entrepreneurship,
Employability, Education and Essential Amenities around
its operating sites. As part of the enhanced focus,
Tata Power Skill Development Institute (TPSDI) inducted
25% trainees
from AA communities and achieved
remarkable placements post-training. In total, 4 lakh
beneficiaries were covered under AA initiatives. Besides this,
your Company also engaged in nurturing vendors and
suppliers from AA communities to help with job creation.
This has been further described in the section on Social
and Relationship Capital of Integrated Report (Page 94).
IR
its
the
and
Social,
Report
adopted
Framework
Environmental
first
recommended
Integrated
Integrated Reporting
25.3 Sustainability Reporting
International
Your Company has
to
Integrated Reporting Council
2019-20.
prepare
SEBI
to be
adopted on a voluntary basis by the top 500 companies,
which are required to prepare BRR, in February 2017.
The content of the report is in accordance with the
Global Reporting Initiative (GRI) standards: Core option and
espouses linkages from the National Voluntary Guidelines
Economic
(NVG) on
responsibilities of the business as well as the United Nations
Sustainable Development Goals (SDGs). The Integrated
Report communicates Tata Power’s performance on
financial and non-financial aspects to all stakeholders,
underlying the importance of our leadership and strategy
towards value creation.
Environment
1.
Your Company aims
for
environmental stewardship in the power industry
through reduction in greenhouse gas emissions and
release of air pollutants by continuously striving for
efficiency in its operations and maintenance and
following best practices to optimize the efficiency
parameters like heat rate and auxiliary consumption
of power generating stations. Your Company also
has been consistently focussing on scaling up
Renewables business as part of its stated strategic
into new energy
intent and also venturing
efficient green business initiatives like Microgrids,
EV charging, Home Automations, Solar Rooftop
and exploring new opportunities in distribution
businesses, thereby working towards its commitment
of sustainable 'Green' growth. A brief outline of your
Company’s ventures on these businesses and growth
of renewables is given in the Manufactured Capital
section of Integrated Report (pages 40-51).
to be a pioneer
2. Health and Safety
Health and Safety management is one of your
Company’s topmost priority with a defined safety
vision “To be a leader in Safety Excellence in the
global power and energy business”. Your Company
3.
employs a pro-active and pre-emptive approach to
occupational health and safety and are committed
to actively drive the agenda through the length
and breadth of the organisation. Consequently,
100% of your contractual workforce are trained on
various aspects of Occupational health and safety.
Close monitoring of safety performance has also
helped your Company to achieve desired goal of
zero injuries and fatalities. The Suraksha mobile app
is one such intervention that enables employees to
conveniently report unsafe conditions. A detailed
description of Health and Safety initiatives taken by
your Company is outlined in Human Capital section
of Integrated Report (pages 58-69).
has
Your
Customer Relationship
Your Company is steadily transitioning from a B2B or
a B2G company to a B2C company with enhanced
focus on value creation for customers. Foraying into
various new business initiatives as a part of your
sustainable growth strategies like rural electrification
(microgrids), solar rooftop solutions, Electric Vehicle
charging etc. are posing new customer service
challenges.
numerous
Company
touchpoints for customers to raise their queries and
a structured process of tracking complaints and
ensuring resolution within pre-defined timelines.
Your Company has also been a pioneer in developing
customer centric technology through innovation and
digitisation. Few of such initiatives are Know Your
Energy Consumption (KYEC), VoiceBot TINA, e-Nach,
etc.
all women
Furthermore, your Company has been instrumental
in raising energy conservation awareness as well
as reducing the energy cost for the consumers
through various initiatives such as “Be Green”, solar
rooftop off-grid solutions etc. A detailed description
of your customer relation measures is given in
the Social and Relationship Capital section in the
Integrated Report (pages 70-81).
customer
relations
centre
4. Human Resource Management
Your Company considers it imperative to create a
work environment which is collaborative as well as
learning and growth oriented to enable employees
to perform at their full potential. Your HR strategy
adopts a multipronged approach covering all the
key facets of employee development. Learning as a
stated value of the Company also sets the tone of your
Company’s endeavour to develop competencies to
rise to new challenges especially posed by changing
strategies of foraying
into new business areas
and coming out of growth through conventional
coal based
thermal power generating assets.
Some of the key Human Resource programmes of
your Company are Talent Next, Ullhas, Youth Power
137
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Confluence, Gyankosh, Long-Service Award, etc.
A detailed description is given in the Human Capital
section of the Integrated Report (pages 58-69).
also have been classified as unskilled, semi-skilled, skilled
and highly skilled.
28. Disclosure requirements
25.4 Business Responsibility Report (BRR)
The BRR 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
FY20 as per the BRR framework, describing initiatives taken
from an environmental, social and governance perspective.
As per Regulation 34 of the Listing Regulations, a
BRR is attached and is a part of this Annual Report. Since the
Company is publishing this Report under IIRC, report on
the nine principles of the National Voluntary Guidelines on
social, environmental and economic responsibilities of
business as framed by the MCA, is provided in relevant
sections of IR with suitable references to the BRR.
25.5 Prevention of Sexual Harassment
Disclosures
in relation to the Sexual Harassment of
(Prevention, Prohibition and
Women at Workplace
Redressal) Act, 2013 have been provided in the Report on
Corporate Governance.
26. Extract of Annual Return
Pursuant to Section 92 of the Act and Rule 12 of the
Companies (Management and Administration) Rules, 2014,
the extract of Annual Return in Form MGT-9 is provided
in Annexure - VIII to this Report and also available on
https://www.tatapower.com/investor-relations/annual-return.aspx.
27. Particulars
of
Employees
And
Remuneration
The information required under Section 197(12) of the
Act read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, is
attached as Annexure - IX.
and
(Appointment
Remuneration
The information required under Rule 5(2) and (3) of the
of
Companies
Managerial Personnel) Rules, 2014, is provided in the
Annexure forming part of this Report. In terms of the
first provision to Section 136 of the Act, the Report and
Accounts are being sent to the Members excluding the
aforesaid Annexure. Any Member interested in obtaining
the same may write to the Company Secretary at
investorcomplaints@tatapower.com. None
the
employees listed in the said Annexure are related to any
Director of the Company.
of
The Company has devised proper systems to ensure
the provisions of all applicable
compliance with
Secretarial Standards
Institute of
Company Secretaries of India and that such systems are
adequate and operating effectively.
issued by
the
29. Deposits
The Company has not accepted any deposits from public
and as such, no amount on account of principal or interest
on deposits from public was outstanding as on the date of
the Balance Sheet.
30. Foreign Exchange - Earnings and Outgo
Particulars - Standalone
Foreign Exchange Earnings
Foreign Exchange
Outflow mainly on account of:
•
•
•
Fuel purchase
Interest on foreign currency
borrowings, NRI dividends
Purchase of capital equipment,
components and spares and other
miscellaneous expenses
31. Acknowledgements
Figures in ₹ crore
FY20
FY19
125
116
1,301
1,336
1,070
1,222
3
4
228
110
On behalf of the Directors of the Company, I would like to
place on record our deep appreciation to our shareholders,
customers, business partners, vendors - both international
and domestic, bankers, financial institutions and academic
institutions for all the support rendered during the year.
The Directors are thankful to the Government of India, the
various ministries of the State Governments, the central
and state electricity regulatory authorities, communities
in the neighbourhood of our operations, municipal
authorities of Mumbai, and local authorities in areas where
we are operational in India; as also partners, governments
and stakeholders in international geographies where
the Company operates, for all the support rendered
during the year.
Finally, we appreciate and value the contributions made
by all our employees and their families for making the
Company what it is.
On behalf of the Board of Directors,
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
Mumbai, 19th May 2020
N. Chandrasekaran
Chairman
(DIN: 00121863)
138
The Tata Power Company Limited Integrated Annual Report 2019-20Board's Report
ANNEXURE - I : DIVIDEND POLICY
(Ref.: Board's Report, Section 5)
1. Context
1.1
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.
2. Background
2.1 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.
2.2
In order to be compliant with various statutes, the
Company has to appropriate the following out of
PAT earned each financial year:
•
Transfer to Debenture Redemption Reserves as per
guidelines stated in Companies Act.
Transfer to Contingencies Reserve as per Electricity
Act.
Servicing of Unsecured Perpetual Securities.
Transfer to General Reserves.
Dividend Distribution to shareholders
dividend distribution tax.
Any adjustments to Other Comprehensive Income
(OCI) as per Ind AS guidelines.
including
•
•
•
•
•
2.3 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 to shareholders
for approval at the Annual General Meeting of the Company.
[a] Circumstances under which the shareholders of
the listed entities may or may not expect dividend:
For the purposes of dividend distribution, the
Company's shareholders may expect the following
broad criteria to be followed by the Company -
•
Dividends may be expected
the
Company only after all required appropriations
have been made and the resultant profit after
from
•
•
the appropriations is positive and sufficient
distribution of dividends as per the parameters
- financial or otherwise mentioned below
in point no.(b).
A lower dividend may be proposed in the
years
the Company has not made
sufficient profits.
that
Any dividend arising from negative profits
would not be expected to be made up through
plough back from the Company's accumulated
Reserves. However,
in exceptional cases,
considering the reasons for which the profits are
negative for the year, the Board may recommend
dividends out of accumulated profits.
[b] Financial Parameters would ideally include:
•
•
•
•
•
•
•
profits
adequacy
adjustments
Distributable
after
appropriating to all Reserves and making all
adjustments but before providing for dividends
and tax thereon.
Special
(upsides/downsides)
which have affected the profits for the year
in consideration.
Historical trend of dividend declared rate per
share for past 10 years.
Total payout of dividend and dividend tax on
the same in ₹ crore.
Payout ratio on PAT and distributable profits.
Earnings per share on distributable profits.
Cash
availability
proposed dividend.
paying
the
for
[c]
laws
under
applicable
Internal and External factors to be viewed:
•
•
•
•
•
Profits projected for the ensuing financial year.
Consolidated profits of Tata Power group.
State of the economy.
Change in rules, regulations and compliances.
Restrictions
including tax laws.
Working capital needs of the Company.
Projects
complete the projects from Parent Company.
Adequacy
current
and projected Cash flows and strain on
the existing cash reserves on account of
declaration of dividends.
Dividend pay-out ratios of the companies
in same Industry.
Debt reduction plans of the Company.
Securities buy-back plan, if any.
in hand and support required to
•
•
•
•
•
•
Company's
the
of
139
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
•
•
Mode of funding of the dividends proposed
to be declared and cost of borrowings/
internal accruals.
adequate
to
Necessity
Reserves
future Contingencies which
have not yet materialized and are thus not
currently accounted for.
maintain
for
[d] Utilisation of Retained Earnings:
•
•
•
•
Prime objective of retained earnings is to
use it judiciously and invest either in existing
projects of
the Company, modernization
not funded by consumers, new projects or
growth areas approved by the Board, retiring
high cost debt etc.
The Company, on behalf of the shareholders,
shall strive to grow its retained earnings at a rate
which would be higher than the risk free rate of
return that can be earned alternatively.
The Company would also check its retained
the debt-equity profile
earnings vis-à-vis
and ROE levels for the long-term investors
of the Company.
on
the
Company's
Based
projected
Investment Opportunity balance, compared
with the existing and projected debt-equity
structure as well as the cost of external
borrowings,
reduced
retained earnings need would be ascertained
and
accordingly
funds would be
deployed for the same.
enhanced or
the
the
[e] Parameters that shall be adopted with regard to
various classes of shares:
•
as per
Any current or future preference treatment
shares,
rights mentioned
the
therein, would be accorded preferential
dividend distribution.
Balance distribution would be effected by the
Company for the equity share component.
As and when Company issues other kind of
shares, the Board may suitably amend this policy.
•
•
This policy may be disclosed as per
Regulations applicable.
This policy may be subject to revision/
amendment as per MCA/SEBI guidelines issued
from time to time.
Company may modify
adding,
or
provisions as deemed fit.
the policy by
some
altering
deleting
[f] Others:
•
•
•
140
•
•
•
If revision/amendments are not consistent
with the existing practice followed then such
revision/amendments will supersede and the
provisions will be modified accordingly.
The Company proposes to limit the distribution
of dividend in the range of 30% to 60% of
distributable profits unless
is
reviewed by the Board again.
Any payout of Dividend below 20% of
distributable profits and above 60% would
need be specifically approved by the Board as
an exception to the policy.
this policy
3. Subsidiary Companies - Draft Dividend
Policy
Subsidiary companies may consider the following aspects
whilst dealing with their surplus profits and determining
the best possible use for the same:
Investments made by Parent Company in the Subsidiary
have been approved based on IRR and cash flows reflected
in the financial model used for investment approvals.
•
•
•
•
•
•
As a majority shareholder, the Parent Company would
be concerned about mode of distribution of the
surplus cash earned by the Subsidiaries particularly
because dividend is the only way to get returns on
the investments made in that subsidiary.
Subsequent
the
initial
the
subsidiary, any capex, growth or diversification plan
of the Subsidiaries need to be placed to Tata Power
Board for approval as per current practice due to the
immediate decision required on providing equity
funding and in some cases support to lenders.
investment
to
in
The Parent Company's Board would convey to the
Subsidiary concerned, its ability (or otherwise) to
support the requirements keeping in mind the
overall leverage ratios and the specific equity raising
plans at the parent level. It could also advise other
suggested modes of funding the requirements.
Subsidiary companies are expected to be familiar
with the overall strategy set by the Parent Company
and align itself to the strategic intent.
All Subsidiaries/JV are expected to follow the
principle of maximising the dividend payout unless
specific purpose for retaining the funds is identified
and agreed to with the Parent in its capacity
as shareholder.
As far as foreign Subsidiaries of the Parent Company
are concerned, the Parent Company Board would play
the role of advising the concerned Subsidiary of the
usage of surplus funds of course the basic principles
underlying remaining the same as above.
The Tata Power Company Limited Integrated Annual Report 2019-20
Annexure - II : POLICY ON BOARD DIVERSITY AND DIRECTOR ATTRIBUTES
(Ref.: Board's Report, Section 12)
1. Objective
1.1 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').
1.2 The company recognises that diversity at board
level is a necessary requirement in ensuring an
effective board. A mix of executive, independent
and other non-executive directors is one important
facet of diverse attributes that the company desires.
Further, a diverse board representing differences
in
the educational qualifications, knowledge,
experience, gender, age, thought and perspective
results in delivering a competitive advantage and a
better appreciation of the interests of stakeholders.
These differences should be balanced against the
need for a cohesive, effective board. All board
appointments shall be made on merit having regard
to this policy.
2. Attributes of Directors
2.1 The following attributes need to be considered in
considering optimum board composition:
i)
Gender diversity
Having at least one woman director on the
Board with an aspiration to reach three
women directors.
ii) Age
The average age of board members should be
in the range of 60 - 65 years.
iii) Competency
The board should have a mix of members with
different educational qualifications, knowledge
and with adequate experience
in finance,
accounting, economics, legal and regulatory
matters, the environment, green technologies,
operations of the company’s businesses, energy
commodity markets and other disciplines
related to the company’s businesses.
iv)
Independence
The independent directors should satisfy the
requirements of the Companies Act, 2013 (the
Act) and the Securities and Exchange Board
of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 in respect of
the ‘independence’ criterion.
•
•
•
•
•
(other
than with
Additional Attributes
The directors should not have any other
pecuniary relationship with the company, its
subsidiaries, associates or joint ventures and
the company’s promoters, besides sitting fees
and commission.
The directors should not have any of their
relatives (as defined in the Act and Rules made
thereunder) as directors or employees or other
stakeholders
immaterial
its subsidiaries,
dealings) of the company,
associates or joint ventures.
The directors should maintain an arm’s length
relationship between themselves and the
employees of the company, as also with the
directors and employees of its subsidiaries,
associates,
joint ventures, promoters and
stakeholders for whom the relationship with
these entities is material.
The directors should not be the subject of
allegations of illegal or unethical behaviour, in
their private or professional lives.
The directors should have ability to devote
sufficient time to the affairs of the Company.
3. Role of the Nomination and Remuneration
Committee
3.1 The Nomination and Remuneration Committee (‘the
NRC’) shall review and assess board composition
whilst
or
reappointment of independent directors.
recommending
appointment
the
4. Review of the Policy
4.1 The NRC will review this policy periodically and
recommend revisions to the board for consideration.
141
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Annexure – III : REMUNERATION POLICY FOR DIRECTORS,
KEY MANAGERIAL PERSONNEL AND OTHER EMPLOYEES
Ref.: Board's Report, Section 12)
for
philosophy
remuneration
The
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.
of
of
of
178(3)
Section
provisions
remuneration policy has been prepared pursuant
This
to
the
the
Companies Act, 2013 (“Act”) and Regulation 19 read with
Part D of Schedule II of the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements)
In case of any
Regulations, 2015 (“Listing Regulations”).
inconsistency between the provisions of
law and this
remuneration policy, the provisions of the law shall prevail and
the company shall abide by the applicable law. While formulating
this policy, the Nomination and Remuneration Committee
(“NRC”) has considered
laid down under
Section 178(4) of the Act, which are as under:
"(a) the level and composition of remuneration is reasonable
and sufficient to attract, retain and motivate directors of
the quality required to run the company successfully;
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 pay reflecting short and long-term performance
objectives appropriate to the working of the company
and its goals.”
factors
the
(b)
(c)
Key principles governing this remuneration policy are as
follows:
Remuneration for independent directors and
non-independent non-executive directors
¡
Independent directors (“ID”) and non-independent
non-executive directors (“NED”) may be paid sitting
fees (for attending the meetings of the Board and
of committees of which they may be members) and
commission within regulatory limits.
¡
¡ Within the parameters prescribed by law, the payment
of sitting fees and commission will be recommended
by the NRC and approved by the Board.
Overall remuneration (sitting fees and commission)
should be reasonable and sufficient to attract, retain
and motivate directors aligned to the requirements
of the company (taking
into consideration the
challenges faced by the company and its future
growth imperatives).
Overall remuneration should be reflective of size
of the company, complexity of the sector/industry/
company’s operations and the company’s capacity to
pay the remuneration.
¡
¡
¡
¡
¡
Overall remuneration practices should be consistent
with recognized best practices.
Quantum of sitting fees may be subject to review on
a periodic basis, as required.
The aggregate commission payable to all the
NEDs and IDs will be recommended by the NRC to
the Board based on company performance, profits,
return to investors, shareholder value creation and
any other significant qualitative parameters as may
be decided by the Board.
The NRC will recommend to the Board the quantum
of commission for each director based upon the
outcome of the evaluation process which is driven by
various factors including attendance and time spent
in the Board and committee meetings, individual
contributions at the meetings and contributions
made by directors other than in meetings.
In addition to the sitting fees and commission,
the company may pay to any director such fair
and reasonable expenditure, as may have been
incurred by the director while performing his/her
role as a director of the company. This could include
reasonable expenditure incurred by the director
for attending Board/Board committee meetings,
general meetings, court convened meetings,
meetings with shareholders/creditors/management,
site visits,
(organised
by the company for directors) and in obtaining
professional advice from independent advisors in the
furtherance of his/her duties as a director.
Remuneration for managing director (“MD”)/
executive directors (“ED”)/KMP/rest of the
employees1
and training
induction
¡
¡
retain
suitable
for every
The extent of overall remuneration should be
talented and
to attract and
sufficient
role.
individuals
qualified
Hence remuneration should be:
Market competitive (market for every role is
defined as companies from which the company
attracts talent or companies to which the
company loses talent).
Driven by the role played by the individual.
Reflective of size of the company, complexity of
the sector/industry/company’s operations and
the company’s capacity to pay.
Consistent with recognized best practices.
Aligned to any regulatory requirements.
1 Excludes employees covered by any long term settlements or specific term
contracts. The remuneration for these employees would be driven by the
respective long term settlements or contracts.
142
The Tata Power Company Limited Integrated Annual Report 2019-20 ¡
In terms of remuneration mix or composition:
The remuneration mix for the MD/EDs is as per
the contract approved by the shareholders.
In case of any change, the same would require
the approval of the shareholders.
Basic/fixed salary is provided to all employees
to ensure that there is a steady income in line
with their skills and experience.
In addition to the basic/fixed salary, the
company provides employees with certain
perquisites, allowances and benefits to enable
a certain level of lifestyle and to offer scope for
savings and tax optimization, where possible.
The company also provides all employees with a
social security net (subject to limits) by covering
medical expenses and hospitalisation through
re-imbursements or insurance cover and
accidental death and dismemberment through
personal accident insurance.
The company provides retirement benefits as
applicable.
In addition to the basic/fixed salary, benefits,
perquisites and allowances as provided
above, the company provides MD/EDs such
remuneration by way of commission, calculated
with reference to the net profits of the
company in a particular financial year, as may
be determined by the Board, subject to the
overall ceilings stipulated in Section 197 of
the Act. The specific amount payable to the
MD/EDs would be based on performance
as evaluated by the Board or the NRC and
approved by the Board.
The company provides the rest of the employees
a performance linked bonus. The performance
linked bonus would be driven by the outcome
of the performance appraisal process and the
performance of the company.
• Remuneration payable to Director for
services rendered in other capacity
The remuneration payable to the Directors shall be
inclusive of any remuneration payable for services
rendered by such director in any other capacity unless:
a)
b)
The services rendered are of a professional nature; and
The NRC
is of the opinion that the director
possesses requisite qualification for the practice of
the profession.
• Policy implementation
is
responsible
The NRC
the
remuneration policy to the Board. The Board is responsible
for approving and overseeing implementation of the
remuneration policy.
recommending
for
143
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Annexure - IV : CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
(Ref.: Board's Report, Section 14)
commercial
Furthermore, your Company
facilitated energy
audits and walk down energy surveys for industrial
and
through energy
consumers
auditors accredited by Bureau of Energy Efficiency
(BEE) helping them to get precise and actionable
recommendations for energy saving.
More than 6,000 MWh of energy savings have
occurred due to energy savings programs in FY 20 &
energy savings recommendations of more than 3,900
MWh have been given in the year.
All the DSM programs were launched after due
and prior approval of the Maharashtra Electricity
Regulatory Commission (MERC).
Your Company serves around 7 lakh consumers
on a monthly basis in Mumbai. These bills are
printed using recycled paper without harming the
environment, which is equivalent to saving 2,600
trees annually. One of the significant steps taken in
FY 20 is introduction the concept of “Paperless Office”
focussing on majorly reducing usage of paper.as
well as reducing cost of photocopying and courier.
This initiative has led to reduction in turnaround
time also. Your company also is instrumental in
encouraging consumers to opt for paperless e-billing.
During FY 20, around 34,065 consumers opted for
e-billing in Mumbai.
in
Further,
the Generation business, various
initiatives for optimization/reduction of auxiliary
power consumption at multiple operating plants
included de-staging of CEPs at MPL, optimisation
of mill operation and CWPs operation in Jojobera,
optimising usage of non-essential air in Trombay,
improvement of energy performance of HT drives in
IEL (Kalinganagar ),installation of variable frequency
drive in CEP area and reduction of clean up cycle time
in CGPL. Additionally Robotic cleaning of module,
re-conduiting of DC power cable, Drone based
thermal imaging of solar assets, implementation of
seasonal tilting are few measures implemented in the
solar sites improving the efficiency in FY 20.
A. Conservation Of Energy
i.
The steps taken for impact on conservation of energy:
Your Company is a pioneer in propagating energy
conservation and efficiency resulting in substantial
benefits for customers. One of the noteworthy
initiatives is "Know Your Electricity Consumption"
(KYEC) a daily energy management online tool
designed for HT Consumers to monitor their daily
energy consumption primarily by comparing with
half-yearly energy consumption for previous month.
This service is also being extended to LT Consumers
in a phased manner. This scheme also enables the
customers to plan energy consumption plan for a
particular period and also provides an alert system
in case of breach of consumption from budgeted
amount. One of the unique features is alerts for
energy consumption during periods of no occupancy.
Your Company
launched a unique consumer
initiative called ‘Be Green’ for residential customers
in Mumbai to purchase energy efficient appliances
at highly discounted prices along with extended
warranty and doorstep delivery which, in turn, help
consumers in reduction of their energy cost and
energy consumption.
than 8,700 energy efficient
In FY 20, more
appliances
Refrigerators,
Ceiling
Split ACs, LED Tube lights have been provided to
Mumbai consumers under this scheme.
Fans,
like
Your company has also facilitated rooftop solar PV Net
Metering and integration of consumer solar plants
with Tata Power grid in Mumbai area., thereby helping
consumers to harness solar energy. Consumers are
also able to export the excess generation to grid
and get a setoff in their electricity bill. 93 consumer
owned rooftop solar PV plants having capacity of 5.4
Mwp have been integrated with grid in FY 20.
In FY 20, a 20 kw rooftop solar system installed in
the customer call centre in Mumbai making it a solar
power call centre from 27th December, 2019.
144
The Tata Power Company Limited Integrated Annual Report 2019-20
B. Research And Development
1
Specific area in which R&D
carried out by the Company
•
In partnership with IIT Mumbai, development of technologies for Carbon Capture for
Indian Coal (Department of Science and Technology Funded Project).
• Development of
from Fly and
Bottom Ash, a waste in our thermal plants, in partnership with Council of Scientific and
Industrial Research labs across India.
for value added products
technologies
• Development of a white paper in partnership with IIT Mumbai for utilization of
Industrial Bi-products.
• Development low voltage high -intensity lighting system for illumination of
confined spaces.
• Developed a Technology road map focussing on usage of hydrogen as fuel.
• Deployment of energy storage/battery and EV charging station.
• Advanced fine line double printing process for manufacturing silicon wafer solar cells.
• Enhancement of the spider framework to support newer generation of sensors.
2
Benefits derived as a
of the above R&D
result
• Reduction in emissions on combustion of Indian Coal in power plants.
• Better waste disposal in line with environmental commitment in line with our
3
Future Plan of Action
C. Technology Absorption
1
Efforts,
Technology
adaptation and innovation
in brief, made towards
Absorption,
strategic objective.
• Aiding the commitment of Circular Economy.
• Conservation of energy and reduction in Carbon Footprint.
• Hydrogen being a cleaner fuel will help reduce our Carbon Footprint.
• Commitment towards greener economy and utility scale storage at prevailing tariffs.
•
Improvement in efficiency of Solar generation.
• Deployment of Border Management capability with SPIDER framework as part of
CIBMS program of MHA and in IPSS trials of Indian Air Force.
•
Investments towards SMART grid technologies such as Smart Meters, Sensors,
Internet of Things (IOT) to make network more intelligent and efficient.
• Development and upgradation of energy storage and battery system especially to
meet high energy demand due to EV charging solutions etc.
• Bottom Ash and waste plastic-based bricks for heavy load applications.
• Adoption of Artificial Intelligence & Machine Learning (ML) for load forecasting for
the Power System Control Centre.
• Deployment of Unmanned Aerial Vehicle (UAV) to do thermal imaging of open switch
yards to identify hotspots.
• Deployment of robotics in generator inspection, painting of exterior walls,
maintenance of solar farms.
• Function specific robots for application in hydros and CW pipelines.
2
Benefits derived as a result of
the above efforts
• Devising methods for ash utilisation.
• Better planning of generation leading to optimization of fuel inventory.
• Safe operations and maintenance in open switchyards.
•
Increase in operational and maintenance efficiency.
145
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
3
In case of imported technology
(imported during the last five years
reckoned from the beginning of
the financial year), the following
information may be furnished:
a) Technology Imported
b) Year of Import
c) Has
technology
been
fully absorbed?
d) If not fully absorbed, areas
where this has not taken place,
future
thereof and
reasons
plans of action
4
Expenditure on R & D
a) Capital
a) Inertial Navigation System (INS) from Honeywell, USA
b) FY15
c) Technology was validated in pilot projects during FY16 and FY17
d) Technology to go for manufacturing
a) Business Collaboration Pliot Project (Indigenization and digitalization) - ₹ 1.05 crore
SED- ₹ 10.02 crore
b) Revenue
b) Nil
Generation Business
•
Effective utilization of Fly Ash in Manufacturing of bricks, gainful utilization in cement plants, development of paints etc.
•
•
Roll out of GE-APM IoT platform for on-line digitalized O&M performance monitoring and intervention.
Cell overflow recovery, service water and fire water line replacements, early identification and rectification of DM water and
steam losses options has enabled better utilization of water resources.
Transmission And Distribution Business
•
Introduced Smart Meter Reading & Bill Distribution (SMRD) for improving process efficiency in meter reading and bill
dispatch activities.
•
•
•
Centralized monitoring of operational parameters of LT feeder helping in load balancing and stable voltages.
Battery storage with preferred bus arrangements for reducing asset stress during peak.
Efficient Micro Grid that is able to supply power in consumer in rural areas.
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
Mumbai, 19th May 2020
146
The Tata Power Company Limited Integrated Annual Report 2019-20
Annexure - V : Secretarial Audit Report
Ref.: Board's Report, Section 22)
FORM No. MR-3
SECRETARIAL AUDIT REPORT
For the Financial Year
Ended 31st March, 2020
[Pursuant to Section 204 (1) of the
Companies Act, 2013 and rule 9 of the
Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014]
To,
The Members,
The Tata Power Company Limited,
Bombay House, 24 Homi Mody Street,
Fort, Mumbai – 400001
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to
good corporate practices by The Tata Power Company
Limited (hereinafter called 'the Company'). Secretarial Audit
was conducted in a manner that provided us a reasonable basis
for evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon.
Based on our verification of the Company’s books, papers, minute
books, forms and returns filed and other records maintained
by the Company and also the information provided by the
Company, its officers, agents and authorized representatives
during the conduct of secretarial audit, we hereby report that in
our opinion, the Company has, during the audit period covering
the financial year ended on 31st March, 2020 (hereinafter called
the ‘Audit Period’) complied with the statutory provisions
listed hereunder and also that the Company has proper Board-
processes and compliance-mechanism in place to the extent, in
the manner and subject to the reporting made hereinafter:
We have examined the books, papers, minute books,
forms and returns filed and other records maintained by
the Company for the financial year ended on 31st March,
2020 according to the provisions of:
(i)
The Companies Act, 2013 (the Act) and the rules
made thereunder;
(ii) The Securities Contract (Regulation) Act, 1956 (‘SCRA’) and
the rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-
laws framed thereunder;
(iv) Foreign Exchange Management Act, 1999 and the
rules and regulations made thereunder to the extent of
Foreign Direct Investment and Overseas Direct Investment;
(External Commercial Borrowings Not Applicable to the
Company during the Audit Period)
(v) The following Regulations and Guidelines prescribed
under the Securities and Exchange Board of India Act,
1992 (‘SEBI Act’):
(a) The Securities and Exchange Board of
India
(Substantial Acquisition of Shares and Takeovers)
Regulations, 2011;
(b) The Securities and Exchange Board of
India
(c)
(Prohibition of Insider Trading) Regulations, 2015;
The Securities and Exchange Board of
(Depositories and Participants) Regulations, 2018;
(d) The Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations,
2018; (Not Applicable to the Company during
the Audit Period)
India
(e) The Securities and Exchange Board of
India
(Share Based Employee Benefits) Regulations,
2014;
(Not applicable to the Company during
the Audit Period)
The Securities and Exchange Board of India (Issue and
Listing of Debt Securities) Regulations, 2008;
(f)
(g) Securities and Exchange Board of
India (Issue
and Listing of Non-Convertible and Redeemable
Preference Shares) Regulations, 2013; (Not Applicable
to the Company during the Audit Period)
(i)
(h) The Securities and Exchange Board of India (Registrars
to an Issue and Share Transfer Agents) Regulations,
1993 regarding the Companies Act and dealing
with client;
The Securities and Exchange Board of India (Delisting of
Equity Shares) Regulations, 2009; (Not applicable to
the Company during the Audit Period) and
The Securities and Exchange Board of India (Buyback of
Securities) Regulations, 2018; (Not applicable to the
Company during the Audit Period)
(j)
We have also examined compliance with the applicable
clauses of the following:
(i)
issued by The
Institute of
Secretarial Standards
Company Secretaries of India
(ii) The
Securities
India
(Listing Obligations and Disclosure Requirements)
Regulations, 2015
Exchange Board of
and
147
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm We further report that there are adequate systems and
processes in the Company commensurate with the size and
operations of the Company to monitor and ensure compliance
with applicable laws, rules, regulations and guidelines.
(ii)
We further report that during the audit period, the Company has
(i) modified its Scheme of Arrangement for transfer of
its Strategic Engineering Division to Tata Advanced
Systems Limited
issued
allotted unsecured, Non-Cumulative,
Redeemable, Taxable, Listed, Rated Non-Convertible
Debentures of ` 1,500 Crore.
issued and allotted secured, Non-cumulative, Redeemable,
Taxable, Unlisted, Rated Non-Convertible Debentures
of ` 220 Crore.
and
(iii)
For Makarand M. Joshi & Co.
Practicing Company Secretaries
Makarand Joshi
Partner
FCS No. 5533
CP No. 3662
UDIN: F005533B000231913
Peer Review No: P2009MH007000
Place: Mumbai
Date: 12th May, 2020
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.
Board's Report
During the period under review the Company has
complied with the provisions of the Act, Rules, Regulations,
Guidelines and Standards, etc.
regard
further report that, having
We
the
compliance system prevailing in the Company and on the
examination of the relevant documents and records in
pursuance thereof, on test-check basis, the Company has
complied with the following laws applicable specifically
to the Company:
to
(i) The Electricity Act, 2003
(ii) The Indian Electricity Rules, 1956
(iii) The rules, regulations and applicable order(s) under
Central and State Electricity Regulatory Commissions/
Authority
(iv) The Energy Conservation Act, 2001
We further report that:
The Board of Directors of the Company is duly constituted with
proper balance of Executive Directors, Non-Executive Directors
and Independent Directors. The changes in the composition
of the Board of Directors that took place during the period
under review were carried out
in compliance with the
provisions of the Act.
Adequate notice was given to all directors to schedule the
Board Meetings, agenda and detailed notes on agenda were
sent at least seven days in advance and a system exists for
seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful
participation at the meeting.
All decisions at Board Meetings and Committee Meetings are
carried out unanimously as recorded in the minutes of the
meetings of the Board of Directors or Committee of the Board,
as the case may be.
148
The Tata Power Company Limited Integrated Annual Report 2019-20
‘Annexure A’
To,
The Members,
The Tata Power Company Limited,
Bombay House, 24 Homi Mody Street,
Fort, Mumbai – 400001
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.
2. We have followed the audit practices and processes as
were appropriate to obtain reasonable assurance about
the correctness of the contents of the Secretarial records.
The verification was done on test basis to ensure that
correct facts are reflected in secretarial records. We believe
that the processes and practices, we followed provide a
reasonable basis for our opinion.
4. Where
ever
required, we have obtained
the
Management representation about the compliance of
laws, rules and regulations and happening of events etc.
5.
6.
The compliance of the provisions of Corporate and
other applicable laws, rules, regulations, standards is the
responsibility of management. Our examination was limited
to the verification of procedure on test basis.
The Secretarial Audit report is neither an assurance as to
the future viability of the Company nor of the efficacy or
effectiveness with which the management has conducted
the affairs of the Company.
For Makarand M. Joshi & Co.
Practicing Company Secretaries
Makarand Joshi
Partner
FCS No. 5533
CP No. 3662
UDIN: F005533B000231913
Peer Review No: P2009MH007000
3. We have not verified the correctness and appropriateness
of financial records and Books of Account of the Company.
Place: Mumbai
Date: 12th May, 2020
149
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
Annexure - VI : Related Party Transactions
Ref.: Board's Report, Section 24)
FORM No. AOC-2
Form for disclosure of particulars of contracts/arrangements entered into by the company with related parties referred to in
sub-section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third proviso thereto
[Pursuant to clause (h) of sub-section (3) of 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:
Date(s) of
approval
by the
Board
Amount
paid as
advances,
if any
Justification
for entering
into such
contracts or
arrangements
or transactions
Date on
which the
special
resolution
was passed
in general
meeting
as required
under
first
proviso to
Section 188
08.11.2019
Nil
N.A.
For use of
Board App
software for
Board and
Committee
meetings and
for Directors
evaluation.
Name(s) of
the related
party and
nature of
relationship
Nature of
contracts/
arrange-
ments/
transactions
Duration of
the contracts/
arrange-
ments/
transactions
Tata
Consultancy
Services
Limited
For a
period of
5 years
from
27th May
2018 to
26th
May 2023
Addendum
No.1
to TCS Board
App and
Service
Agreement
for use of
Board App
software for
Board and
Committee
meetings and
for Directors
evaluation.
Salient terms
of the
contracts or
arrangements
or transactions
including
the value,
if any
Addendum
dated 5th February
2020 to TCS Board
App and
Service Agreement
for use of Board
App software for
Board and
Committee
meetings and
for Directors
evaluation.
Consideration
value approx.
₹ 26 lakh p.a.
excluding taxes.
2. Details of material contracts or arrangement or transactions at arm’s length basis:
Name(s) of
the related
party and nature
of
relationship
Nature of
contracts/
arrangements/
transactions
Duration of
the contracts/
arrangements/
transactions
Salient terms
of the contracts
or arrangements
or transactions
including
the value, if any
Date(s) of
approval
by the Board,
if any
Amount paid
as
advances,
if any
There are no material contracts or arrangements or transactions at arm’s length basis
Mumbai, 19th May 2020
150
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
The Tata Power Company Limited Integrated Annual Report 2019-20 ANNEXURE - VII : ANNUAL REPORT ON CSR ACTIVITIES
(Ref.: Board's Report, Section 25)
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.
Tata Power CSR Policy outlines five
community development:
thrust areas
for
• Education (VIDYA)
• Livelihood & Skill Building (DAKSH & SAMMRIDDHI)
• Water (for drinking & irrigation) (AMRUTDHARA)
• Health and Sanitation (AROGYA)
• Financial Inclusivity (ADHIKAAR)
The Company focussed on replication, innovation and scalable
initiatives with long term sustainability. Key flagship initiatives
across locations helped achieve sustainable results and change
to the communities. Tata Power Community Development
Trust (TPCDT) has internal capabilities to execute CSR programs
effectively and efficiently. The Company’s CSR policy, including
overview of projects or programs undertaken is provided on the
Company’s website.
2.
The composition of the CSR Committee
Ms. Anjali Bansal- Chairperson and Independent Director
Mr. K.M. Chandrasekhar-Independent Director
Mr. Praveer Sinha- CEO and Managing Director
3.
4.
Average net profit of the company for
financial years
last three
₹ 152.17 crore
Prescribed CSR Expenditure (two percent of the amount
as in item 3 above)
₹ 3.04 crore
5.
Details of CSR spend during the financial year
(a)
Total amount spent for the financial year
₹ 3.80 crore
(b) Amount unspent, if any
Nil
(c) Manner
in which the amount spent during the
Detailed overleaf
financial year
151
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
Sl.
No
CSR project
or activity
identified
Sector in
which the
Project is
covered
I
II
Education
Livelihood & Skill
Building
(Focus Areas: Skill
Development,
Vocational
training,
Promote
Livelihood
practices among
farmers/ fishermen,
Income Generation
activities for
Women Self Help
Groups)
Promotion
of Education
Livelihood
enhancement
projects;
Promoting
gender equality,
empowering
women and
measures for
reducing
inequalities
faced by socially
and economically
backward groups
III Water
(Drinking
& Irrigation)
IV
Health &
Sanitation
V
VI
Financial
Inclusivity
Affirmative
Action (AA)
Sports and
Others
VII
Total
152
Livelihood
enhancement
projects;
Promoting
gender
equality,
empowering
women and
measures for
reducing
inequalities
faced by
socially and
economically
backward
groups
Education,
Employability,
Entrepreneurship,
Essential
Amenities,
Sports,
and Community
Engagement
Project or
Programs
(1) Local area
or other
(2) Specify
the State and
district where
projects
or programs
were under
taken
Amount
outlay
(budget)
project or
programs
wise
(₹ in lakh)
59
160
Amount
spent on
the projects
or programs
Sub-heads:
(1) Direct
Expenditure
on projects or
Programs
(2) Overheads
(₹ in lakh)
59
165
Local Areas
• Maval,
Mulshi
(Hydros)
• Trombay,
Distribution
License Area
• Mundra
State:
• Maharashtra
• Gujarat
District:
• Pune
• Mumbai
• Kutch
21
36
16
12
21
35
15
85
Cumulative
expenditure
upto the
reporting
period (as on
31.03.2020)
(₹ in lakh)
Amount
spent:
Direct or
through
implementing
agency
Direct:
Tata Power
Implementation
Agency
(internal):
• Tata Power
Community
Development
Trust (TPCDT)
• Employee
Volunteers
1,486
5,514
174
1,340
89
2,861
304
380
11,464
The Tata Power Company Limited Integrated Annual Report 2019-20
Key Highlights of the CSR Program
Tata Power (on a standalone basis) CSR Initiatives covered 14.06
lakh beneficiaries across 165 locations in Maharashtra and
Gujarat. Thrust area-wise details are as follows:
•
•
Details of Education Initiatives (VIDYA):
•
89,282
e-Vidya
(Digital Learning) and Vidya Sagar (Remedial Coaching)
across all locations.
students were
covered
under
•
60% overall academic performance improved through
various education initiatives from Digital learning to
teachers training.
Details of Health and Sanitation Initiatives
(MAMTA & SAMMAAN):
•
2.37 lakh 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.
This year 1,169 camps are organised and approximately
21,625 patients are treated through MMU services.
Details of Livelihood (SAMRIDDHI) and Skill
Building (DAKSH) Initiatives:
•
1.01 lakh impacted through farmed and non-farmed based
livelihood initiatives.
•
•
•
•
•
Under Samriddhi, farm based agriculture initiatives under
across locations with focus on vermi-compost, mushroom
cultivation, shrimp and Bombay duck farming, horticulture
promotion sustainable agri practices and establishment
of knowledge dissemination centre for farmers across all
locations covering farmers/fishermen.
Tata Power Skill Development Institute ('TPSDI") has also
adopted and rolled out skill training exclusively for women
replicating ABHA model in Mumbai
In FY20, the total number of TPSDI trainees were 22,858
out of which, 2,113 were unemployed youth. 38.6 % of the
unemployed youth were from SC/ST communities. 91 % of
eligible youth were provided placement.
Dhaaga (Women Micro-Enterprise) covered 1,170 members
across 19 locations in 8 states. 50+ Exhibition cum sales
organized with order value exceeding R 60 lakh across
Mumbai, Bengaluru, Pune, Delhi, Thane and Kolkata in
collaboration with major corporates including TCS, Titan,
Axis Bank, HDFC Bank, Phillips, Godrej, Capgemini etc.
Collaboration with Amazon India led to Dhaaga products
available in Amazon Saheli platform resulting in online
sales and marketing.
Focus on Youth skilling under Daksh led to youth training
under various vocational courses and TPSDI initiatives with
25% from Affirmative Action community.
Maval Dairy- Women centre dairy based enterprise
witnessed the successful launch of 10,000 Litres per day
Milk processing Plant covering 1,500 women members
across 41 villages. This Initiative was dedicated to socio
economic empowerment of women and had the pride
of being Maharashtra’s 1st and All India 2nd All Women
Dairy Farmer Producer Company.
Details of Water Initiatives (AMRUTDHARA):
lakh
•
in coverage of 5.91
Participatory Ground Water
Water
beneficiaries
Management and Drinking Water initiatives.
Initiatives resulted
under
•
Initiative like water ATM is a sustainable solution and in
future community take the responsibility.
Details of Financial Inclusivity (ADHIKAAR):
•
2.9 lakh beneficiaries covered with resources accessed
under various Govt. Schemes by communities.
Volunteering (ARPAN):
•
This year marked 1.7 lakh volunteering hours. Highest ever
in Tata Power's history.
•
•
Tata Power also received the National recognition
for Best Corporate in Promoting Employee Volunteering at
National Volunteer Conclave organized by IVolunteer-
national platform for promoting volunteering.
It also bagged 5 awards at Tata Group Volunteering
Recognition platform.
COVID-19 Response: (Till 31st March 2020):
•
Nearly 3 lakh people linked with PDS shops to get 50 Kg.
of food grains.
•
•
•
•
•
•
•
List of 5,000 migrant workers across Mumbai surveyed and
submitted to Government for necessary essential support
Ensuring
Water ATM run by community.
uninterrupted water
supply
through
Facilitation of supply of green fodder for the 3,600 cattle
daily amounting to 43 MT.
Uninterrupted supply of drinking water for the transient
fishermen and other migrant population.
Supply and distribution of more than 1.8 lakh face
masks by Dhaaga Women members
in Jharkhand,
Odisha and Maharashtra.
Supply and Spray of disinfectant
villages of Jharkhand.
in the peripheral
Awareness generation on social distancing and distribution
of hygiene kits to villagers and migrant workers.
153
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
CSR Awards and Recognition received in FY19
Tata Power recognized for promoting Skill upgradation at
•
ITI Jawhar on World Youth Skills day by Hon’ble Governor
and Hon’ble Minister for Skill Development, Maharashtra.
Tata Group TVW 11 Volunteering Award for Most Unique
Activity
intervention and Best
Collaboration in TVW 12.
the box)
(out of
Maithon wins CSR Award from Govt. of Netherlands
for promoting Sanitation Practices under 1 Million
Toilet Campaign.
TPSDI received Asia’s Training & Development Excellence
Awards.
CGPL received Certificate of Appreciation for PGWM from
Govt of Gujarat.
•
•
•
•
•
•
Two of the Company's flagship CSR initiatives Dhaaga and
Participatory Ground Water Management (PGWM) won
Gold and Bronze medal respectively in Asian Customer
Engagement Forum (ACEF) CSR Excellence Awards 2019.
The CSR
Skill Building Initiatives .
Journal Award
2019
to
TPSDI
for
(Global)
WABA
Trombay
and Mulshi for promoting Maternal and Child Health
consecutively for 6th year.
recognition
2019
to
Breastfeeding Promotion Network of India (BPNI) 2019
recognizes Tata Power for promoting Maternal and
Child Health.
Tata Power has won the I-Volunteer Awards for Leader in
Employee Volunteering category 2020.
Tata Power won 5 awards at Tata volcon 2020.
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.
Not Applicable
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.
The implementation and monitoring of the CSR Policy is in
compliance with CSR objectives and Policy of the Company.
•
•
•
•
7.
8.
Anjali Bansal
Chairperson, CSR Committee
(DIN: 00207746)
Praveer Sinha
CEO & Managing Director
(DIN: 01785164)
154
The Tata Power Company Limited Integrated Annual Report 2019-20
Annexure - VIII : Extract of Annual Return
(Ref.: Board's Report, Section 26)
FORM No.MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended on 31st March 2020
[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1)
of the Companies (Management and Administration) Rules, 2014]
I.
CIN: L28920MH1919PLC000567
Registration Date: 18th September 1919
Registration And Other Details:
i)
ii)
iii) Name of the Company: The Tata Power Company Limited
iv)
v)
Category/Sub-Category of the Company: Public Company limited by shares
Address of the Registered office and contact details:
Bombay House, 24, Homi Mody Street, Mumbai - 400 001.
Tel.: 022 6665 8282 Fax: 022 6665 8801
E-mail: tatapower@tatapower.com Website: www.tatapower.com
vi) Whether listed company: Yes
vii) Name, Address and Contact details of Registrar and Transfer Agent, if any:
TSR Darashaw Consultants Private Limited (formerly known as TSR Darashaw Limited)
6-10, Haji Moosa Patrawala Industrial Estate,
20, Dr. E. Moses Road, Mahalaxmi, Mumbai - 400 011.
Tel.: 022 6656 8484 Fax.: 022 6656 8494.
E-mail: csg-unit@tsrdarashaw.com Website: www.tsrdarashaw.com
II. Principal Business Activities Of The Company
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl.No.
Name and Description of
main products/services
NIC Code of
the product/service
% to total turnover
of the company
1
Power Supply & Transmission charges
3510
94
III. Particulars Of Holding, Subsidiary And Associate Companies
Name and Address of the Company *
CIN/GLN
Sl.
No.
1
2
3
4
5
6
Af-Taab Investment Co. Ltd.
Corporate Center, B Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Tata Power Trading Co. Ltd.
Carnac Receiving Station, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Powerlinks Transmission Ltd.#
10th Floor, DLF Tower-A, District Center-Jasola,
New Delhi 110025
Maithon Power Ltd.
Corporate Center, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
NELCO Ltd.
MIDC, Plot No. EL 6, TTC Industrial Area,
Electronics Zone, Mahape, Navi Mumbai 400710
Tatanet Services Ltd.
MIDC, Plot No. EL 6, TTC Industrial Area,
Electronics Zone, Mahape, Navi Mumbai 400710
U65990MH1979PLC021037
Holding/
Subsidiary/
Associate
Subsidiary
% of
shares
held *
100
Applicable
Section
Section 2(87)
U40100MH2003PLC143770
Subsidiary
100
Section 2(87)
U40105DL2001PLC110714
Subsidiary
51
Section 2(87)
U74899MH2000PLC267297
Subsidiary
74
Section 2(87)
L32200MH1940PLC003164
Subsidiary
50.04
Section 2(87)
U67120MH1987PLC044351
Subsidiary
50.04
Section 2(87)
155
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
Name and Address of the Company *
CIN/GLN
Sl.
No.
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
Nelco Network Products Ltd.
EL-6, TTC Industrial Area, MIDC, Mahape,
Navi Mumbai 400710
Industrial Energy Ltd. #
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
TP Renewable Microgrid Ltd.
(Formerly known as Industrial Power Utility Ltd.)
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Tata Power Delhi Distribution Ltd.
NDPL House, Hudson Lines, Kingsway Camp,
Delhi 110009
NDPL Infra Ltd.
Jeevan Bharati Tower #1, 10th Floor, 124,
Connaught Circus, New Delhi 110001
Coastal Gujarat Power Ltd.
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Tata Power Renewable Energy Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Tata Power Green Energy Ltd.
B Block, Corporate Center, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Supa Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Nivade Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Poolavadi Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Indo Rama Renewables Jath Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Vagarai Windfarm Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
TP Kirnali Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
TP Solapur Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
156
U32309MH2016PLC285693
Holding/
Subsidiary/
Associate
Subsidiary
% of
shares
held *
50.04
Applicable
Section
Section 2(87)
U74999MH2007PLC167623
Subsidiary
74
Section 2(87)
U40100MH2007PLC168291
Subsidiary
100
Section 2(87)
U40109DL2001PLC111526
Subsidiary
51
Section 2(87)
U40106DL2011PLC223982
Subsidiary
51
Section 2(87)
U40102MH2006PLC182213
Subsidiary
100
Section 2(87)
U40108MH2007PLC168314
Subsidiary
100
Section 2(87)
U40108MH2011PLC211851
Subsidiary
100
Section 2(87)
U40300MH2015PLC270878
Subsidiary
100
Section 2(87)
U40300MH2015PLC271114
Subsidiary
100
Section 2(87)
U40300MH2016PLC271899
Subsidiary
74
Section 2(87)
U40300MH2012PLC316963
Subsidiary
100
Section 2(87)
U40106MH2017PLC291708
Subsidiary
72
Section 2(87)
U40100MH2020PLC337950
Subsidiary
100
Section 2(87)
U40108MH2020PLC338268
Subsidiary
100
Section 2(87)
The Tata Power Company Limited Integrated Annual Report 2019-20 Name and Address of the Company *
CIN/GLN
Sl.
No.
22 Walwhan Renewable Energy Ltd.
U40103MH2009PLC197021
Holding/
Subsidiary/
Associate
Subsidiary
% of
shares
held *
100
Applicable
Section
Section 2(87)
23
24
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Clean Sustainable Solar Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Dreisatz Mysolar24 Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
U40300MH2014PTC254371
Subsidiary
99.99
Section 2(87)
U40102MH2009PTC326890
Subsidiary
100
Section 2(87)
25 MI Mysolar24 Pvt. Ltd.
U40106MH2009PTC326791
Subsidiary
100
Section 2(87)
26
27
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
Northwest Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Solarsys Renewable Energy Pvt. Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
U40108MH2008PTC182762
Subsidiary
100
Section 2(87)
U74999MH2004PTC325049
Subsidiary
100
Section 2(87)
28 Walwhan Solar Energy GJ Ltd.
U40104MH2008PLC184134
Subsidiary
100
Section 2(87)
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
29 Walwhan Solar Raj Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
30 Walwhan Solar BH Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
31 Walwhan Solar MH Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
32 Walwhan Wind RJ Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
33 Walwhan Solar AP Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
34 Walwhan Solar KA Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
35 Walwhan Solar MP Ltd.
c/o The Tata Power Co. Ltd., Corporate Centre B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
U40105MH2010PLC202097
Subsidiary
100
Section 2(87)
U40106MH2010PLC209615
Subsidiary
100
Section 2(87)
U40108MH2006PLC165673
Subsidiary
100
Section 2(87)
U40108MH2006PLC325050
Subsidiary
100
Section 2(87)
U40109MH2008PLC178769
Subsidiary
100
Section 2(87)
U40300MH2012PLC233418
Subsidiary
100
Section 2(87)
U40106MH2010PLC206275
Subsidiary
100
Section 2(87)
157
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
Name and Address of the Company *
CIN/GLN
Sl.
No.
36 Walwhan Solar PB Ltd.
U40300MH2010PLC326052
Holding/
Subsidiary/
Associate
Subsidiary
% of
shares
held *
100
Applicable
Section
Section 2(87)
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
37 Walwhan Energy RJ Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
38 Walwhan Solar TN Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
39 Walwhan Solar RJ Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B, 34,
Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
40 Walwhan Urja Anjar Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B, 34,
Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
41 Walwhan Urja India Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B, 34,
Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Dugar Hydro Power Ltd. #
Santosh Bhavan, 1st Floor, Near Govt. Middle School,
Mehli, PO Kasumpti, Shimla 171009
Tata Power Solar Systems Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Chirasthaayee Saurya Ltd.
c/o The Tata Power Co. Ltd., Corporate Center B,
34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
Tata Power Jamshedpur Distribution Ltd.
c/o The Tata Power Co. Ltd., Corporate Center,
A Block, 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400009
TCL Ceramics Ltd.
(formerly known as Tata Ceramics Limited),
26 Cochin Special Economic Zone, Kakkanad,
Ernakulam 682037
TP Ajmer Distribution Ltd.
c/o The Tata Power Co. Ltd., 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Bhira Investments Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 07912
Bhivpuri Investments Ltd.
IFS Court, Bank Street, Twenty-Eight,
Cybercity Ebene 72201, Republic of Mauritius
Khopoli Investments Ltd.
IFS Court, Bank Street, Twenty-Eight,
Cybercity Ebene 72201, Republic of Mauritius
Trust Energy Resources Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 079120
42
43
44
45
46
47
48
49
50
51
158
U40105MH2010PLC206475
Subsidiary
100
Section 2(87)
U40106MH2010PLC326794
Subsidiary
100
Section 2(87)
U40300MH2011PLC213470
Subsidiary
100
Section 2(87)
U40300MH2010PLC326888
Subsidiary
100
Section 2(87)
U40109MH2006PLC165964
Subsidiary
100
Section 2(87)
U40101HP2011PLC031626
Subsidiary
50.001
Section 2(87)
U40106MH1989PLC330738
Subsidiary
100
Section 2(87)
U4010MH2016PLC330252
Subsidiary
100
Section 2(87)
U40300MH2012PLC237581
Subsidiary
100
Section 2(87)
U26933KL1991PLC006018
Subsidiary
57.07
Section 2(87)
U40100MH2017PLC293914
Subsidiary
100
Section 2(87)
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Subsidiary
100
Section 2(87)
Subsidiary
100
Section 2(87)
Subsidiary
100
Section 2(87)
Subsidiary
100
Section 2(87)
The Tata Power Company Limited Integrated Annual Report 2019-20 Sl.
No.
52
53
54
55
Name and Address of the Company *
CIN/GLN
Tata Power International Pte. Ltd.
78 Shenton Way, 17-01/02, Singapore 079120
Far Eastern Natural Resources LLC,
Russian Federation, 683024, Kamchatka Krai,
Petropavlovsk-Kamchatsky city,
49 Zerkalnaya str., office 327.
PT Sumber Energi Andalan Tbk.
Prince Centre 8th Floor, JI. Jend.
Sudirman Kav 3-4, Jakarta 10220, Indonesia
Tubed Coal Mines Ltd.
Century Bhavan, 3rd Floor, Dr. Annie Besant Road,
Worli, Mumbai 400030
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Holding/
Subsidiary/
Associate
% of
shares
held *
Applicable
Section
Subsidiary
100
Section 2(87)
Subsidiary
100
Section 2(87)
Subsidiary
92.50
Section 2(87)
U10100MH2007PLC174466
Associate
40
Section 2(6)
56 Mandakini Coal Company Ltd.
U10100DL2008PLC175417
Associate
33.33
Section 2(6)
57
58
59
60
61
62
63
64
65
66
67
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110070
Solace Land Holding Ltd.
Plot No.12, Sector B-1, Local Shopping Complex,
Vasant Kunj, New Delhi 110070
Yashmun Engineers Ltd.
Dharavi Road, Next to MSEB, Matunga,
Mumbai 400019
Tata Projects Ltd.
Mithona Towers-1, 1-7-80 to 87, Prenderghast Road,
Secunderabad, Hyderabad 500003
The Associated Building Co. Ltd.
Bombay House, 24, Homi Mody Street,
Mumbai 400001
Brihat Trading Pvt. Ltd.
Bank of Baroda Building,
Bombay Samachar Marg, Mumbai 400001
PT Mitratama Perkasa
Menara Anugrah Lantai 10, Kantor Taman E3.3,
Lot 8.6-8.7, JI DR Ide Anak Agung Gde Agung-
Kawasan Mega Kuningan, Jakarta 12950, Indonesia
PT Mitratama Usaha
Menara Anugrah Lantai 10, Kantor Taman E3.3,
Lot 8.6-8.7, JI DR Ide Anak Agung Gde Agung-
Kawasan Mega Kuningan, Jakarta 12950, Indonesia
PT Arutmin Indonesia
14th Floor, Bakrie Tower Complex, Rasuna Epicentrum,
Jalan H.R. Rasuna Said, Jakarta 12940, Indonesia
PT Kaltim Prima Coal
Bakrie Tower, 15th Floor, JI. H.R. Rasuna Said,
Kel. Karet Kuningan Kec. Setiabudi,
Jakarta Selatan, Indonesia 12940
Indocoal Resources (Cayman) Ltd.
P.O. Box 309GT, Ugland House, South Church Street,
George Town, Grand Cayman,
Cayman Islands
Indocoal KPC Resources (Cayman) Ltd.
Citco Trustees (Cayman) Limited, 89 Nexus Way,
Camana Bay, P.O. Box 31106, Grand Cayman KY1-
1205, Cayman Islands
U70109DL2012PLC242177
Associate
33.33
Section 2(6)
U29100MH1966PLC006109
Associate
27.27
Section 2(6)
U45203TG1979PLC057431
Associate
47.78
Section 2(6)
U45200MH1921PLC000866
Associate
33.14
Section 2(6)
U51900MH1988PTC049926
Associate
33.21
Section 2(6)
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
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)
159
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
Sl.
No.
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
Name and Address of the Company *
CIN/GLN
PT Indocoal Kalsel Resources
M&C Corporate Service Limited
PO BOX 309 GT Ugland House,
South Church Street, George Town,
Grand Cayman, Cayman Island
PT Indocoal Kaltim Resources
Bakrie Tower, 12th floor, Rasuna Epicentrum
Jl. H.R. Rasuna Said, Jakarta, Indonesia 12940
Dagachhu Hydro Power Corporation Ltd.
Khebisa, Dzongkhang: Dagana, Bhutan
Candice Investments Pte. Ltd.
60 Paya Lebar Road, #08-43 Paya Lebar Square,
Singapore 409051
PT Nusa Tambang Pratama
Menara Anugrah Lantai 10, Kantor Taman E3.3,
Lot 8.6-8.7, JI DR Ide Anak Agung Gde Agung-
Kawasan Mega Kuningan, Jakarta 12950, Indonesia
PT Marvel Capital Indonesia
Menara Anugrah Lantai 10, Kantor Taman E3.3,
Lot 8.6-8.7, JI DR Ide Anak Agung Gde Agung-
Kawasan Mega Kuningan, Jakarta 12950, Indonesia
PT Dwikarya Prima Abadi
Menara Anugrah Lantai 10, Kantor Taman E3.3,
Lot 8.6-8.7, JI DR Ide Anak Agung Gde Agung-
Kawasan Mega Kuningan, Jakarta 12950, Indonesia
PT Kalimantan Prima Power
Gd. Menara Duta Lt. 2 Wing A
Jl. H. R. Rasuna Said Kav. B-9 Setibudi,
Jakarta Selatan 12910
PT Guruh Agung
Gd. Graha Kapital Lt. 2, Jl. Kemang Raya No. 4,
Bangka, Jakarta Selatan
PT Citra Prima Buana
Gd. Menara Duta Lt. 2 Wing A, Jl. H. R. Rasuna Said Kav.
B-9 Setibudi, Jakarta Selatan 12910
PT Citra Kusuma Perdana
Gd. Menara Duta Lt. 2 Wing A, Jl. H. R. Rasuna Said Kav.
B-9 Setibudi, Jakarta Selatan 12910
PT Baramulti Sukessarana Tbk
Sahid Sudirman Center, 56C, Jl. Jendral Sudirman Kav.
86, Jakarta 10220, Indonesia
PT Antang Gunung Meratus
Sahid Sudirman Center, 56C, Jl. Jendral Sudirman Kav.
86, Jakarta 10220, Indonesia
Adjaristsqali Netherlands B.V.
Luna Arena, Herikerbergweg 238, 1101 CM Amsterdam,
P.O. Box 23393, 1100 DW Amsterdam, The Netherlands
Adjaristsqali Georgia LLC
6, I. Abashidze Str., Ap 2-3, Batumi, 6010, Georgia
Koromkheti Netherlands B.V.
Luna Arena, Herikerbergweg 238, 1101 CM Amsterdam,
P.O. Box 23393, 1100 DW Amsterdam, The Netherlands
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
160
Holding/
Subsidiary/
Associate
Associate
% of
shares
held *
30
Applicable
Section
Section 2(6)
Associate
30
Section 2(6)
Associate
26
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
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
40
Section 2(6)
Associate
40
Section 2(6)
The Tata Power Company Limited Integrated Annual Report 2019-20 Name and Address of the Company *
CIN/GLN
Sl.
No.
84
85
86
87
88
89
Koromkheti Georgia L.L.C
6, I. Abashidze Str., Ap 2-3, Batumi, 6010, Georgia
Itezhi Tezhi Power Corporation Ltd.
Unit No. 13D, 2nd Floor, Pangaea Office Park
Plot 2374, Great East Road, Show grounds Area
Postnet 239, Private Bag E891 Mandahill
Lusaka
Resurgent Power Ventures Pte. Ltd.
1 Raffles Place, #13-01, One Raffles Place,
Singapore 048616
Renascent Power Ventures Pvt. Ltd.
Corporate Centre, B Block, 34, Sant Tukaram Road,
Carnac Bunder, Mumbai 400009
Prayagraj Power Generation Company Ltd.
Shatabdi Bhawan, B 12 & 13, Sector 4, Noida Gautam
Buddha Nagar 201301
LTH Milcom Pvt. Ltd.
L & T House, Ballard Estate, Mumbai 400001
Not applicable,
foreign company
Not applicable,
foreign company
Not applicable,
foreign company
Holding/
Subsidiary/
Associate
% of
shares
held *
Applicable
Section
Associate
40
Section 2(6)
Associate
50
Section 2(6)
Associate
26
Section 2(6)
U40300MH2018FTC315149
Associate
26
Section 2(6)
U40101UP2007SGC032835
Associate
19.50
Section 2(6)
U74999MH2015PTC267502
Associate
33.33
Section 2(6)
* Includes direct and indirect subsidiaries, joint ventures and associates.
# Classified as Joint ventures as per Indian Accounting Standards.
IV. Shareholding Pattern (Equity Share Capital Breakup as percentage of Total Equity):
i)
Category-wise Share Holding
No. of Shares held at the beginning of the year
(as on 01.04.2019)
No. of Shares held at the end of the year
(as on 31.03.2020)
Demat
Physical
Total
% of
Total
Shares
Demat
Physical
Total
% of
Total
Shares
%
Change
during
the year
Category of Shareholders
A. Promoters
(including
Promoter Group)
(1) Indian
a) Individuals / HUF
b) Central Govt.
c) State Govt.(s)
0
0
0
d) Bodies Corporate
89,25,44,226
e) Bank/FI
f) Any Other (Trust)
0
0
Sub-Total (A) (1):
89,25,44,226
(2) Foreign
a) NRIs -Individuals
b) Other - Individuals
c) Bodies Corporate
d) Banks/FI
e) Any Other (specify)
Sub-Total (A) (2):
Total Shareholding
of Promoters
(A) =(A) (1)+(A)(2)
0
0
0
0
0
0
89,25,44,226
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0
0
0
89,25,44,226
33.00
100,66,91,528
0
0
0.00
0.00
0
0
0
0
0
0
0
0
0
0
0
0.00
0.00
0.00
100,66,91,528
37.22
0
0
0.00
0.00
0.00
0.00
0.00
4.22
0.00
0.00
89,25,44,226
33.00 100,66,91,528
0 100,66,91,528
37.22
4.22
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0
0
0
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
0.00
89,25,44,226
33.00 100,66,91,528
0 100,66,91,528
37.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.22
161
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Category of Shareholders
B. Public Shareholding
(1) Institutions
No. of Shares held at the beginning of the year
(as on 01.04.2019)
No. of Shares held at the end of the year
(as on 31.03.2020)
Demat
Physical
Total
% of
Total
Shares
Demat
Physical
Total
% of
Total
Shares
%
Change
during
the year
a) Mutual Funds / UTI
28,79,25,778
1,28,880
28,80,54,658
10.65
35,69,36,614
1,09,060
35,70,45,674
13.20
b) Bank/FI
c) Central Govt.
d) State Govt.(s)
2,13,28,182
4,23,122
2,17,51,304
66,63,070
0
66,63,070
44,300
2,47,120
2,91,420
e) Venture Capital Funds
0
f) Alternate Investment Funds
23,65,000
0
0
0
23,65,000
0.80
0.25
0.01
0.00
0.09
1,84,14,577
4,23,122
1,88,37,699
2,53,18,383
0
2,53,18,383
44,300
2,47,120
2,91,420
0
1,48,32,479
0
0
0
1,48,32,479
0.70
0.94
0.01
0.00
0.55
g)
Insurance Companies
35,46,58,303
29,100
35,46,87,403
13.11
33,65,49,995
29,100
33,65,79,095
12.44
h) FIIs
82,67,700
50,480
83,18,180
4,34,048
17,800
4,51,848
0.31
0.00
0
0
0.02
0.00
0
2.55
-0.11
0.69
0.00
0.00
0.46
-0.67
-0.29
0.00
i)
Foreign Venture Capital
Funds
j) Others (specify)
j-i) Foreign Portfolio Investors
(Corporate)
j-ii) Foreign Nationals - DR
j-iii) Foreign Bodies - DR
j-iv) Foreign Institutional
Investors - DR
0
71,03,88,567
0
0
0
0
0
0
0
0
71,03,88,567
26.26
50,31,63,143
0
0
0
0.00
0.00
0.00
0
12,21,000
0
50,31,63,143
18.60
-7.66
0
12,21,000
0
0.00
0.05
0.00
0.00
0.05
0.00
Sub-Total (B) (1):
139,16,40,900
8,78,702 139,25,19,602
51.48 125,69,14,539
8,26,202 125,77,40,741
46.50
-4.98
(2) Non-Institutions
a) Bodies Corporate
i)
Indian
ii) Overseas
b)
Individuals
i)
ii)
Individual shareholders
holding nominal share
capital upto ₹ 1 lakh
Individual shareholders
holding nominal share
capital in excess of ₹ 1 lakh
c) Others (specify)
4,00,04,666
10,51,534
4,10,56,200
4,000
400
4,400
1.52
0.00
4,20,60,475
9,84,460
4,30,44,935
4,000
0
4,000
1.59
0.00
0.07
0.00
29,61,86,146
4,26,14,185
33,88,00,331
12.53
31,29,96,849
3,70,44,592
35,00,41,441
12.94
0.42
2,80,09,351
12,34,100
2,92,43,451
1.08
3,19,49,144
11,18,100
3,30,67,244
1.22
0.14
NBFCs registered with RBI
65,737
0
65,737
Trust
18,11,560
21,900
18,33,460
36,862
68,36,941
0
0
0
0
0
0
36,862
68,36,941
0
0
0.00
0.07
0.00
0.25
0.00
0.00
81,950
25,25,074
2,16,262
80,38,303
28,96,492
0
0
81,950
3,240
25,28,314
2,16,262
80,38,303
28,96,492
0.00
0.09
0.01
0.30
0.11
0
0.00
0.00
0.03
0.01
0.04
0.11
0.00
0.81
37,29,55,263 4,49,22,119
41,78,77,382
15.45 40,07,68,549 3,91,50,392 43,99,18,941
16.26
176,45,96,163 4,58,00,821 181,03,96,984
66.93 165,76,83,088 3,99,76,594 169,76,59,682
62.77
-4.17
265,71,40,389 4,58,00,821 270,29,41,210
99.93 266,43,74,616 3,99,76,594 270,43,51,210
99.98
18,31,000
1,300
18,32,300
0.07
4,21,000
1,300
4,22,300
0.02
0.05
-0.05
Directors & their relatives
IEPF Suspense A/C
QIB-Insurance Co. Regd.
with IRDA
Foreign Bodies
Sub-total (B) (2):
Total Public Shareholding
(B) = (B)(1)+(B)(2)
TOTAL (A)+(B)
C. Shares held by
Custodians for GDR & ADRs
GRAND TOTAL (A)+(B)+(C)
265,89,71,389 4,58,02,121 270,47,73,510 100.00 266,47,95,616 3,99,77,894 270,47,73,510 100.00
0.00
162
0
0
0
0
0
0
0
0
0
The Tata Power Company Limited Integrated Annual Report 2019-20 ii)
Shareholding of Promoters (including Promoter Group)
Shareholder's Name
Sl.
No.
Shareholding at the beginning of the year
(as on 01.04.2019)
Shareholding at the end of the year
(as on 31.03.2020)
No. of
Shares
% of total
Shares of
the
company
% of Shares
Pledged/
encumbered
to total shares
No. of
Shares
% of total
Shares of
the
company
% of Shares
Pledged/
encumbered
to total shares
% change in
shareholding
during
the year
1
2
3
4
5
6
7
8
9
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
* Part of Promoter Group
83,97,99,682
31.05
1.43
95,39,46,984
35.27
3,91,22,725
68,47,842
45,35,200
22,29,657
9,120
0
0
0
1.45
0.25
0.17
0.08
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
3,91,22,725
68,47,842
45,35,200
22,29,657
9,120
0
0
0
1.45
0.25
0.17
0.08
0.00
0.00
0.00
0.00
89,25,44,226
33.00
1.43 1,00,66,91,528
37.22
1.43
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.43
4.22
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.22
iii) Changes in Promoter’s (including Promoter Group) Shareholding (please specify, if there is no change)
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 1.04.2019)
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
shares
of the
company
No. of
shares
% of total
shares
of the
company
83,97,99,682
31.05
1
Tata Sons
Private
Limited
(Promoter)
05.09.2019
Purchase of Shares
06.09.2019
Purchase of Shares
09.09.2019
Purchase of Shares
11.09.2019
Purchase of Shares
4,12,110
41,49,245
80,69,169
27,65,374
12.09.2019
Purchase of Shares
2,73,12,754
13.09.2019
Purchase of Shares
16.09.2019
Purchase of Shares
17.09.2019
Purchase of Shares
18.09.2019
Purchase of Shares
39,25,216
17,06,894
65,64,845
35,23,320
19.09.2019
Purchase of Shares
1,74,82,316
20.09.2019
Purchase of Shares
23.09.2019
Purchase of Shares
38,69,699
70,87,581
12.03.2020
Purchase of Shares
1,38,78,964
13.03.2020
Purchase of Shares
1,33,99,815
83,97,99,682
84,02,11,792
84,43,61,037
85,24,30,206
85,51,95,580
88,25,08,334
88,64,33,550
88,81,40,444
89,47,05,289
89,82,28,609
91,57,10,925
91,95,80,624
92,66,68,205
94,05,47,169
95,39,46,984
0.02
0.15
0.30
0.10
1.01
0.15
0.06
0.24
0.13
0.65
0.14
0.26
0.51
0.50
31.05
31.06
31.22
31.52
31.62
32.63
32.77
32.84
33.08
33.21
33.86
34.00
34.26
34.77
35.27
- 95,39,46,984
35.27
3,91,22,725
0.00
3,91,22,725
-
3,91,22,725
1.45
1.45
1.45
163
2
Tata Steel
Limited *
3,91,22,725
1.45
31.03.2020 At the end of the year
-
No change
31.03.2020 At the end of the year
-
0
-
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 1.04.2019)
Date
Reason
Increase/Decrease in
Shareholding
Cumulative Shareholding
during the year
3
4
5
6
7
8
Tata Investment
Corporation
Limited *
Tata
Industries
Limited *
Ewart
Investments
Limited *
Tata Motors
Finance
Limited *
Sir
Dorabji
Tata Trust *
Sir Ratan
Tata
Trust *
9
JRD Tata Trust *
No. of
shares
% of total
shares
of the
company
68,47,842
0.25
-
No change
31.03.2020 At the end of the year
45,35,200
0.17
-
No change
31.03.2020 At the end of the year
22,29,657
0.08
-
No change
31.03.2020 At the end of the year
9,120
0.00
0
0
0
-
No change
31.03.2020 At the end of the year
0.00
-
No change
31.03.2020 At the end of the year
0.00
-
No change
31.03.2020 At the end of the year
0.00
-
No change
31.03.2020 At the end of the year
No. of
shares
% of total
shares
of the
company
No. of
shares
% of total
shares
of the
company
68,47,842
68,47,842
0.00
-
68,47,842
45,35,200
0.00
45,35,200
-
45,35,200
22,29,657
22,29,657
0.00
-
22,29,657
0.00
-
0.00
-
0.00
-
0.00
-
9,120
9,120
9,120
0
0
0
0
0
0
0
0
0
0.25
0.25
0.25
0.17
0.17
0.17
0.08
0.08
0.08
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
-
0
-
0
-
0
-
0
-
0
-
0
-
* Part of Promoter Group
164
The Tata Power Company Limited Integrated Annual Report 2019-20
iv)
Shareholding Pattern of Top 10 Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs):
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
11,38,29,237
% of total
shares
of the
company
4.21
1
ICICI
Prudential
Value
Discovery
Fund
05.04.2019 Purchase of Shares
19.04.2019 Sale of Shares
26.04.2019 Purchase of Shares
03.05.2019 Purchase of Shares
10.05.2019 Purchase of Shares
17.05.2019 Purchase of Shares
24.05.2019 Sale of Shares
24.05.2019 Purchase of Shares
31.05.2019 Purchase of Shares
06.06.2019 Purchase of Shares
14.06.2019 Purchase of Shares
18.06.2019 Purchase of Shares
28.06.2019 Purchase of Shares
05.07.2019 Purchase of Shares
12.07.2019 Purchase of Shares
19.07.2019 Purchase of Shares
26.07.2019 Purchase of Shares
02.08.2019 Purchase of Shares
09.08.2019 Purchase of Shares
16.08.2019 Purchase of Shares
23.08.2019 Sale of Shares
23.08.2019 Purchase of Shares
30.08.2019 Purchase of Shares
06.09.2019 Purchase of Shares
13.09.2019 Sale of Shares
13.09.2019 Purchase of Shares
20.09.2019 Sale of Shares
20.09.2019 Purchase of Shares
27.09.2019 Purchase of Shares
30.09.2019 Purchase of Shares
04.10.2019 Purchase of Shares
11.10.2019 Purchase of Shares
18.10.2019 Purchase of Shares
25.10.2019 Sale of Shares
25.10.2019 Purchase of Shares
01.11.2019 Purchase of Shares
08.11.2019 Purchase of Shares
15.11.2019 Purchase of Shares
22.11.2019 Sale of Shares
22.11.2019 Purchase of Shares
29.11.2019 Purchase of Shares
06.12.2019 Sale of Shares
06.12.2019 Purchase of Shares
13.12.2019 Purchase of Shares
No. of
shares
% of total
shares
of the
company
No. of
shares
1
-1,606
8,030
8,030
13,37,433
5,075
-1,606
930
20,878
1,606
4,821
4,821
11,40,257
4,147
1,608
4,826
17,23,736
39,48,803
15,63,580
51,66,143
-8,01,000
60,77,480
5,35,640
33,15,173
-1,32,47,736
1,617
-31,12,000
1,617
2,359
920
8,825
2,501
509
-3,162
5,76,921
4,34,619
23,01,770
62,33,142
-1,582
1,44,921
9,89,025
-4,746
23,35,817
42,39,229
11,38,29,237
11,38,29,238
11,38,27,632
11,38,35,662
11,38,43,692
11,51,81,125
11,51,86,200
11,51,84,594
11,51,85,524
11,52,06,402
11,52,08,008
11,52,12,829
11,52,17,650
11,63,57,907
11,63,62,054
11,63,63,662
11,63,68,488
11,80,92,224
12,20,41,027
12,36,04,607
12,87,70,750
12,79,69,750
13,40,47,230
13,45,82,870
13,78,98,043
12,46,50,307
12,46,51,924
12,15,39,924
12,15,41,541
12,15,43,900
12,15,44,820
12,15,53,645
12,15,56,146
12,15,56,655
12,15,53,493
12,21,30,414
12,25,65,033
12,48,66,803
13,10,99,945
13,10,98,363
13,12,43,284
13,22,32,309
13,22,27,563
13,45,63,380
13,88,02,609
0.00
0.00
0.00
0.00
0.05
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.04
0.00
0.00
0.00
0.06
0.15
0.06
0.19
-0.03
0.22
0.02
0.12
-0.49
0.00
-0.12
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.02
0.09
0.23
0.00
0.01
0.04
0.00
0.09
0.16
% of total
shares
of the
company
4.21
4.21
4.21
4.21
4.21
4.26
4.26
4.26
4.26
4.26
4.26
4.26
4.26
4.30
4.30
4.30
4.30
4.37
4.51
4.57
4.76
4.73
4.96
4.98
5.10
4.61
4.61
4.49
4.49
4.49
4.49
4.49
4.49
4.49
4.49
4.52
4.53
4.62
4.85
4.85
4.85
4.89
4.89
4.98
5.13
165
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
% of total
shares
of the
company
2 Matthews
Pacific
Tiger Fund
3
Life Insurance
Corporation
of India
18,03,16,487
6.67
20,97,31,735
7.75
166
20.12.2019 Purchase of Shares
27.12.2019 Purchase of Shares
31.12.2019 Purchase of Shares
03.01.2020 Purchase of Shares
10.01.2020 Purchase of Shares
17.01.2020 Sale of Shares
17.01.2020 Purchase of Shares
24.01.2020 Purchase of Shares
31.01.2020 Sale of Shares
31.01.2020 Purchase of Shares
07.02.2020 Purchase of Shares
14.02.2020 Sale of Shares
14.02.2020 Purchase of Shares
21.02.2020 Sale of Shares
21.02.2020 Purchase of Shares
28.02.2020 Sale of Shares
28.02.2020 Purchase of Shares
06.03.2020 Sale of Shares
06.03.2020 Purchase of Shares
13.03.2020 Sale of Shares
13.03.2020 Purchase of Shares
20.03.2020 Sale of Shares
20.03.2020 Purchase of Shares
27.03.2020 Purchase of Shares
31.03.2020 Purchase of Shares
31.03.2020 At the end of the year
No. of
shares
65,08,985
2,346
24,12,000
1,80,000
45,67,182
-7,13,779
32,07,160
1,71,43,448
-9,000
44,90,632
67,93,672
-17,737
19,95,139
-8,668
37,67,574
-27,567
1,09,61,272
-1
1,20,53,965
-39,51,000
32,16,759
-90,000
2,36,930
18,72,323
49,17,065
-
No change
31.03.2020 At the end of the year
0
-
05.04.2019 Sale of Shares
12.04.2019 Sale of Shares
19.04.2019 Sale of Shares
26.04.2019 Sale of Shares
03.05.2019 Sale of Shares
10.05.2019 Sale of Shares
17.05.2019 Sale of Shares
24.05.2019 Sale of Shares
31.05.2019 Sale of Shares
06.06.2019 Sale of Shares
14.06.2019 Sale of Shares
18.06.2019 Sale of Shares
28.06.2019 Sale of Shares
05.07.2019 Sale of Shares
17.01.2020 Purchase of Shares
24.01.2020 Purchase of Shares
-9,55,000
-84,09,922
-61,39,070
-51,30,428
-4,80,000
-22,47,486
-32,96,306
-47,16,055
-49,92,000
-18,71,810
-15,47,035
-2,71,301
-17,73,000
-4,35,000
4,00,000
13,915
% of total
shares
of the
company
0.24
0.00
0.09
0.01
0.17
-0.03
0.12
0.63
0.00
0.17
0.25
0.00
0.07
0.00
0.14
0.00
0.41
0.00
0.45
-0.15
0.12
0.00
0.01
0.07
0.18
No. of
shares
14,53,11,594
14,53,13,940
14,77,25,940
14,79,05,940
15,24,73,122
15,17,59,343
15,49,66,503
17,21,09,951
17,21,00,951
17,65,91,583
18,33,85,255
18,33,67,518
18,53,62,657
18,53,53,989
18,91,21,563
18,90,93,996
20,00,55,268
20,00,55,267
21,21,09,232
20,81,58,232
21,13,74,991
21,12,84,991
21,15,21,921
21,33,94,244
21,83,11,309
- 21,83,11,309
18,03,16,487
18,03,16,487
- 18,03,16,487
20,97,31,735
20,87,76,735
20,03,66,813
19,42,27,743
18,90,97,315
18,86,17,315
18,63,69,829
18,30,73,523
17,83,57,468
17,33,65,468
17,14,93,658
16,99,46,623
16,96,75,322
16,79,02,322
16,74,67,322
16,78,67,322
16,78,81,237
% of total
shares
of the
company
5.37
5.37
5.46
5.47
5.64
5.61
5.73
6.36
6.36
6.53
6.78
6.78
6.85
6.85
6.99
6.99
7.40
7.40
7.84
7.70
7.81
7.81
7.82
7.89
8.07
8.07
6.67
6.67
6.67
7.75
7.72
7.41
7.18
6.99
6.97
6.89
6.77
6.59
6.41
6.34
6.28
6.27
6.21
6.19
6.21
6.21
0.00
-0.04
-0.31
-0.23
-0.19
-0.02
-0.08
-0.12
-0.17
-0.18
-0.07
-0.06
-0.01
-0.07
-0.02
0.01
0.00
The Tata Power Company Limited Integrated Annual Report 2019-20
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
4
5
The New India
Assurance
Company
Limited
Reliance Capital
Trustee Co. Ltd.-
A/C Nippon
India
Growth Fund
No. of
shares
% of total
shares
of the
company
5,41,93,839
2.00
3,34,67,627
1.24
07.02.2020 Purchase of Shares
14.02.2020 Purchase of Shares
31.03.2020 At the end of the year
05.04.2019 Sale of Shares
12.04.2019 Sale of Shares
20.09.2019 Sale of Shares
31.03.2020 At the end of the year
05.04.2019 Purchase of Shares
12.04.2019 Purchase of Shares
19.04.2019 Purchase of Shares
26.04.2019 Sale of Shares
26.04.2019 Purchase of Shares
03.05.2019 Sale of Shares
03.05.2019 Purchase of Shares
10.05.2019 Sale of Shares
10.05.2019 Purchase of Shares
17.05.2019 Purchase of Shares
24.05.2019 Purchase of Shares
31.05.2019 Purchase of Shares
06.06.2019 Purchase of Shares
07.06.2019 Sale of Shares
07.06.2019 Purchase of Shares
11.06.2019 Sale of Shares
14.06.2019 Sale of Shares
14.06.2019 Purchase of Shares
18.06.2019 Sale of Shares
18.06.2019 Purchase of Shares
21.06.2019 Purchase of Shares
28.06.2019 Sale of Shares
28.06.2019 Purchase of Shares
05.07.2019 Sale of Shares
05.07.2019 Purchase of Shares
12.07.2019 Sale of Shares
12.07.2019 Purchase of Shares
19.07.2019 Sale of Shares
19.07.2019 Purchase of Shares
26.07.2019 Purchase of Shares
02.08.2019 Sale of Shares
02.08.2019 Purchase of Shares
09.08.2019 Sale of Shares
09.08.2019 Purchase of Shares
16.08.2019 Purchase of Shares
23.08.2019 Sale of Shares
23.08.2019 Purchase of Shares
No. of
shares
26,97,747
10,02,253
-
-2,75,000
-7,25,000
-10,00,000
-
16,865
12,42,688
9,84,712
-63,175
13,74,577
-5,13,000
15,44,100
-1,25,830
1,59,000
5,70,080
17,19,171
2,17,374
82,442
-31,980
4,00,454
-50,718
-4,50,000
5,448
-605
5,98,454
16,21,806
-4,32,752
5,19,222
-44,87,442
30,14,364
-1,08,000
5,837
-4,86,000
12,880
31,26,745
-5,94,000
36,60,263
-3,51,966
6,84,849
2,02,245
-17,82,000
38,04,333
% of total
shares
of the
company
0.10
0.04
-
-0.01
-0.03
-0.04
-
0.00
0.05
0.04
0.00
0.05
-0.02
0.06
0.00
0.01
0.02
0.06
0.01
0.00
0.00
0.01
0.00
-0.02
0.00
0.00
0.02
0.06
-0.02
0.02
-0.17
0.11
0.00
0.00
-0.02
0.00
0.12
-0.02
0.14
-0.01
0.03
0.01
-0.07
0.14
No. of
shares
17,05,78,984
17,15,81,237
17,15,81,237
5,41,93,839
5,39,18,839
5,31,93,839
5,21,93,839
5,21,93,839
3,34,67,627
3,34,84,492
3,47,27,180
3,57,11,892
3,56,48,717
3,70,23,294
3,65,10,294
3,80,54,394
3,79,28,564
3,80,87,564
3,86,57,644
4,03,76,815
4,05,94,189
4,06,76,631
4,06,44,651
4,10,45,105
4,09,94,387
4,05,44,387
4,05,49,835
4,05,49,230
4,11,47,684
4,27,69,490
4,23,36,738
4,28,55,960
3,83,68,518
4,13,82,882
4,12,74,882
4,12,80,719
4,07,94,719
4,08,07,599
4,39,34,344
4,33,40,344
4,70,00,607
4,66,48,641
4,73,33,490
4,75,35,735
4,57,53,735
4,95,58,068
% of total
shares
of the
company
6.31
6.34
6.34
2.00
1.99
1.97
1.93
1.93
1.24
1.24
1.28
1.32
1.32
1.37
1.35
1.41
1.40
1.41
1.43
1.49
1.50
1.50
1.50
1.52
1.52
1.50
1.50
1.50
1.52
1.58
1.57
1.58
1.42
1.53
1.53
1.53
1.51
1.51
1.62
1.60
1.74
1.72
1.75
1.76
1.69
1.83
167
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
% of total
shares
of the
company
30.08.2019 Purchase of Shares
06.09.2019 Sale of Shares
06.09.2019 Purchase of Shares
13.09.2019 Purchase of Shares
20.09.2019 Sale of Shares
20.09.2019 Purchase of Shares
27.09.2019 Sale of Shares
27.09.2019 Purchase of Shares
04.10.2019 Purchase of Shares
11.10.2019 Purchase of Shares
18.10.2019 Purchase of Shares
25.10.2019 Purchase of Shares
01.11.2019 Purchase of Shares
08.11.2019 Purchase of Shares
15.11.2019 Sale of Shares
15.11.2019 Purchase of Shares
22.11.2019 Sale of Shares
22.11.2019 Purchase of Shares
29.11.2019 Sale of Shares
06.12.2019 Sale of Shares
06.12.2019 Purchase of Shares
13.12.2019 Sale of Shares
13.12.2019 Purchase of Shares
20.12.2019 Purchase of Shares
27.12.2019 Sale of Shares
27.12.2019 Purchase of Shares
31.12.2019 Purchase of Shares
03.01.2020 Purchase of Shares
10.01.2020 Purchase of Shares
17.01.2020 Purchase of Shares
24.01.2020 Sale of Shares
24.01.2020 Purchase of Shares
31.01.2020 Sale of Shares
07.02.2020 Purchase of Shares
14.02.2020 Purchase of Shares
21.02.2020 Sale of Shares
28.02.2020 Sale of Shares
28.02.2020 Purchase of Shares
06.03.2020 Sale of Shares
06.03.2020 Purchase of Shares
13.03.2020 Sale of Shares
13.03.2020 Purchase of Shares
20.03.2020 Sale of Shares
27.03.2020 Sale of Shares
31.03.2020 Purchase of Shares
31.03.2020 At the end of the year
No. of
shares
39,74,831
-5,22,000
12,01,350
3,150
-5,00,000
3,150
-7,29,051
1,09,386
2,369
46,728
38,682
18,000
4,023
46,817
-5,528
6,57,000
-5,504
8,10,000
-1,16,049
-21,475
5,06,000
-18,000
2,273
275
-975
6,471
2,16,422
12,720
1,563
21,624
-23,90,579
15,19,536
-20,15,126
22,457
2,968
-12,80,504
-10,02,066
4,77,000
-548
16,81,147
-17,10,000
72,560
-2,59,158
-2,961
22,419
-
% of total
shares
of the
company
0.15
-0.02
0.04
0.00
-0.02
0.00
-0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.02
0.00
0.03
0.00
0.00
0.02
0.00
0.00
0.00
0.00
0.00
0.01
0.00
0.00
0.00
-0.09
0.06
-0.07
0.00
0.00
-0.05
-0.04
0.02
0.00
0.06
-0.06
0.00
-0.01
0.00
0.00
-
No. of
shares
5,35,32,899
5,30,10,899
5,42,12,249
5,42,15,399
5,37,15,399
5,37,18,549
5,29,89,498
5,30,98,884
5,31,01,253
5,31,47,981
5,31,86,663
5,32,04,663
5,32,08,686
5,32,55,503
5,32,49,975
5,39,06,975
5,39,01,471
5,47,11,471
5,45,95,422
5,45,73,947
5,50,79,947
5,50,61,947
5,50,64,220
5,50,64,495
5,50,63,520
5,50,69,991
5,52,86,413
5,52,99,133
5,53,00,696
5,53,22,320
5,29,31,741
5,44,51,277
5,24,36,151
5,24,58,608
5,24,61,576
5,11,81,072
5,01,79,006
5,06,56,006
5,06,55,458
5,23,36,605
5,06,26,605
5,06,99,165
5,04,40,007
5,04,37,046
5,04,59,465
5,04,59,465
% of total
shares
of the
company
1.98
1.96
2.00
2.00
1.99
1.99
1.96
1.96
1.96
1.96
1.97
1.97
1.97
1.97
1.97
1.99
1.99
2.02
2.02
2.02
2.04
2.04
2.04
2.04
2.04
2.04
2.04
2.04
2.04
2.05
1.96
2.01
1.94
1.94
1.94
1.89
1.86
1.87
1.87
1.93
1.87
1.87
1.86
1.86
1.87
1.87
168
The Tata Power Company Limited Integrated Annual Report 2019-20 Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
6 General
5,19,62,960
% of total
shares
of the
company
1.92
9,00,17,492
3.33
7
Insurance
Corporation
of India
First State
Investments
Icvc - Stewart
Investors
Global
Emerging
Markets
Leaders
Fund
1,33,69,849
0.49
8
Franklin
India
Equity
Advantage
Fund
No. of
shares
% of total
shares
of the
company
No. of
shares
05.04.2019 Sale of Shares
27.09.2019 Sale of Shares
31.03.2020 At the end of the year
27.09.2019 Sale of Shares
30.09.2019 Sale of Shares
15.11.2019 Sale of Shares
29.11.2019 Sale of Shares
06.12.2019 Sale of Shares
20.12.2019 Sale of Shares
24.01.2020 Sale of Shares
14.02.2020 Sale of Shares
21.02.2020 Sale of Shares
13.03.2020 Sale of Shares
20.03.2020 Sale of Shares
27.03.2020 Sale of Shares
31.03.2020 Sale of Shares
31.03.2020 At the end of the year
11.06.2019 Purchase of Shares
18.06.2019 Purchase of Shares
12.07.2019 Purchase of Shares
26.07.2019 Purchase of Shares
02.08.2019 Purchase of Shares
09.08.2019 Purchase of Shares
16.08.2019 Purchase of Shares
23.08.2019 Purchase of Shares
30.08.2019 Purchase of Shares
27.09.2019 Purchase of Shares
04.10.2019 Purchase of Shares
11.10.2019 Purchase of Shares
18.10.2019 Purchase of Shares
25.10.2019 Purchase of Shares
13.12.2019 Sale of Shares
13.12.2019 Purchase of Shares
20.12.2019 Sale of Shares
20.12.2019 Purchase of Shares
31.01.2020 Purchase of Shares
07.02.2020 Purchase of Shares
28.02.2020 Purchase of Shares
20.03.2020 Purchase of Shares
27.03.2020 Purchase of Shares
31.03.2020 At the end of the year
-1,00,000
-50,00,000
-
-36,88,702
-4,73,090
-32,77,864
-62,28,069
-4,83,796
-27,02,412
-54,70,986
-21,22,663
-1,99,112
-8,51,547
-1,23,45,246
-34,49,563
-28,95,760
-
11,79,645
11,83,921
5,00,000
5,00,000
15,00,000
7,50,000
10,00,000
20,00,034
14,99,966
25,00,000
6,84,300
9,23,468
20,76,532
5,00,000
-2,50,51,911
2,53,01,911
-51,15,804
51,15,804
10,00,000
4,00,000
30,00,000
11,29,397
3,70,603
-
5,19,62,960
5,18,62,960
4,68,62,960
4,68,62,960
9,00,17,492
8,63,28,790
8,58,55,700
8,25,77,836
7,63,49,767
7,58,65,971
7,31,63,559
6,76,92,573
6,55,69,910
6,53,70,798
6,45,19,251
5,21,74,005
4,87,24,442
4,58,28,682
4,58,28,682
1,33,69,849
1,45,49,494
1,57,33,415
1,62,33,415
1,67,33,415
1,82,33,415
1,89,83,415
1,99,83,415
2,19,83,449
2,34,83,415
2,59,83,415
2,66,67,715
2,75,91,183
2,96,67,715
3,01,67,715
51,15,804
3,04,17,715
2,53,01,911
3,04,17,715
3,14,17,715
3,18,17,715
3,48,17,715
3,59,47,112
3,63,17,715
3,63,17,715
0.00
-0.18
-
-0.14
-0.02
-0.12
-0.23
-0.02
-0.10
-0.20
-0.08
-0.01
-0.03
-0.46
-0.13
-0.11
-
0.04
0.04
0.02
0.02
0.06
0.03
0.04
0.07
0.06
0.09
0.03
0.03
0.08
0.02
-0.93
0.94
-0.19
0.19
0.04
0.01
0.11
0.04
0.01
-
% of total
shares
of the
company
1.92
1.92
1.73
1.73
3.33
3.19
3.17
3.05
2.82
2.80
2.70
2.50
2.42
2.42
2.39
1.93
1.80
1.69
1.69
0.49
0.54
0.58
0.60
0.62
0.67
0.70
0.74
0.81
0.87
0.96
0.99
1.02
1.10
1.12
0.19
1.12
0.94
1.12
1.16
1.18
1.29
1.33
1.34
1.34
169
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
6,06,551
% of total
shares
of the
company
0.02
9 HDFC Life
Insurance
Company
Limited
No. of
shares
% of total
shares
of the
company
No. of
shares
2,908
40,00,000
40,00,000
9,99,019
15,00,000
-28,000
5,00,000
5,01,390
-5,840
5,00,000
-32,434
10,00,000
20,13,395
7,44,363
26,34,816
15,79,064
-1,29,508
9,94,897
-20,807
-2,108
8,84,274
1,11,126
2,71,146
1,45,472
2,01,350
-7,437
8,65,655
-2,101
-11,414
17,51,640
6,20,311
-85,574
6,20,526
-12,570
2,91,663
-52,959
-95,137
-4,580
-856
7,41,609
716
2,77,430
800
8,37,468
19,41,076
6,06,551
6,09,459
46,09,459
86,09,459
96,08,478
1,11,08,478
1,10,80,478
1,15,80,478
1,20,81,868
1,20,76,028
1,25,76,028
1,25,43,594
1,35,43,594
1,55,56,989
1,63,01,352
1,89,36,168
2,05,15,232
2,03,85,724
2,13,80,621
2,13,59,814
2,13,57,706
2,22,41,980
2,23,53,106
2,26,24,252
2,27,69,724
2,29,71,074
2,29,63,637
2,38,29,292
2,38,27,191
2,38,15,777
2,55,67,417
2,61,87,728
2,61,02,154
2,67,22,680
2,67,10,110
2,70,01,773
2,69,48,814
2,68,53,677
2,68,49,097
2,68,48,241
2,75,89,850
2,75,90,566
2,78,67,996
2,78,68,796
2,87,06,264
3,06,47,340
0.00
0.15
0.15
0.04
0.06
0.00
0.02
0.02
0.00
0.02
0.00
0.04
0.07
0.03
0.10
0.06
0.00
0.04
0.00
0.00
0.03
0.00
0.01
0.01
0.01
0.00
0.03
0.00
0.00
0.06
0.02
0.00
0.02
0.00
0.01
0.00
0.00
0.00
0.00
0.03
0.00
0.01
0.00
0.03
0.07
% of total
shares
of the
company
0.02
0.02
0.17
0.32
0.36
0.41
0.41
0.43
0.45
0.45
0.46
0.46
0.50
0.58
0.60
0.70
0.76
0.75
0.79
0.79
0.79
0.82
0.83
0.84
0.84
0.85
0.85
0.88
0.88
0.88
0.95
0.97
0.97
0.99
0.99
1.00
1.00
0.99
0.99
0.99
1.02
1.02
1.03
1.03
1.06
1.13
12.04.2019 Purchase of Shares
19.04.2019 Purchase of Shares
26.04.2019 Purchase of Shares
10.05.2019 Purchase of Shares
17.05.2019 Purchase of Shares
06.06.2019 Sale of Shares
07.06.2019 Purchase of Shares
11.06.2019 Purchase of Shares
05.07.2019 Sale of Shares
12.07.2019 Purchase of Shares
19.07.2019 Sale of Shares
26.07.2019 Purchase of Shares
02.08.2019 Purchase of Shares
09.08.2019 Purchase of Shares
16.08.2019 Purchase of Shares
23.08.2019 Purchase of Shares
30.08.2019 Sale of Shares
06.09.2019 Purchase of Shares
20.09.2019 Sale of Shares
27.09.2019 Sale of Shares
04.10.2019 Purchase of Shares
11.10.2019 Purchase of Shares
18.10.2019 Purchase of Shares
25.10.2019 Purchase of Shares
01.11.2019 Purchase of Shares
08.11.2019 Sale of Shares
15.11.2019 Purchase of Shares
22.11.2019 Sale of Shares
29.11.2019 Sale of Shares
06.12.2019 Purchase of Shares
13.12.2019 Purchase of Shares
20.12.2019 Sale of Shares
27.12.2019 Purchase of Shares
31.12.2019 Sale of Shares
03.01.2020 Purchase of Shares
10.01.2020 Sale of Shares
17.01.2020 Sale of Shares
24.01.2020 Sale of Shares
31.01.2020 Sale of Shares
07.02.2020 Purchase of Shares
14.02.2020 Purchase of Shares
21.02.2020 Purchase of Shares
28.02.2020 Purchase of Shares
06.03.2020 Purchase of Shares
13.03.2020 Purchase of Shares
170
The Tata Power Company Limited Integrated Annual Report 2019-20
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
% of total
shares
of the
company
10 Postal Life
48,41,587
0.18
Insurance Fund
A/C Sbifmpl
11 Stewart
5,01,16,888
1.85
Investors
Global
Emerging
Markets
Leaders Fund
12 SBI Large &
Midcap
Fund
4,70,23,060
1.74
20.03.2020 Purchase of Shares
27.03.2020 Purchase of Shares
31.03.2020 Purchase of Shares
31.03.2020 At the end of the year
05.07.2019 Purchase of Shares
19.07.2019 Purchase of Shares
23.08.2019 Purchase of Shares
06.03.2020 Purchase of Shares
20.03.2020 Purchase of Shares
27.03.2020 Purchase of Shares
31.03.2020 At the end of the year
27.09.2019 Sale of Shares
30.09.2019 Sale of Shares
18.10.2019 Sale of Shares
25.10.2019 Sale of Shares
01.11.2019 Sale of Shares
08.11.2019 Sale of Shares
15.11.2019 Sale of Shares
22.11.2019 Sale of Shares
29.11.2019 Sale of Shares
06.12.2019 Sale of Shares
13.12.2019 Sale of Shares
20.12.2019 Sale of Shares
14.02.2020 Sale of Shares
21.02.2020 Sale of Shares
27.03.2020 Sale of Shares
31.03.2020 Sale of Shares
31.03.2020 At the end of the year
05.04.2019 Purchase of Shares
19.04.2019 Sale of Shares
19.04.2019 Purchase of Shares
26.04.2019 Sale of Shares
10.05.2019 Purchase of Shares
17.05.2019 Purchase of Shares
31.05.2019 Sale of Shares
06.06.2019 Sale of Shares
11.06.2019 Sale of Shares
21.06.2019 Purchase of Shares
28.06.2019 Sale of Shares
19.07.2019 Sale of Shares
26.07.2019 Sale of Shares
26.07.2019 Purchase of Shares
02.08.2019 Sale of Shares
No. of
shares
14,40,233
5,95,738
3,200
-
11,17,302
15,69,857
10,06,442
43,97,770
34,05,685
23,94,557
-
-21,56,032
-2,76,519
-78,78,376
-64,29,628
-11,52,995
-15,00,630
-51,51,802
-27,96,420
-23,90,493
-16,16,843
-34,78,201
-7,32,732
-11,24,909
-4,43,015
-7,37,811
-7,59,736
-
29,97,000
-29,97,028
1,60,000
-33
12,51,937
30,49,147
-47
-1,066
-1,60,000
1,887
-191
-3,65,000
-1,17,45,523
22,77,004
-6,00,000
% of total
shares
of the
company
0.05
0.02
0.00
-
0.04
0.06
0.04
0.16
0.13
0.09
-
-0.08
-0.01
-0.29
-0.24
-0.04
-0.06
-0.19
-0.10
-0.09
-0.06
-0.13
-0.03
-0.04
-0.02
-0.03
-0.03
-
0.11
-0.11
0.01
0.00
0.05
0.11
0.00
0.00
-0.01
0.00
0.00
-0.01
-0.43
0.08
-0.02
No. of
shares
3,20,87,573
3,26,83,311
3,26,86,511
3,26,86,511
48,41,587
59,58,889
75,28,746
85,35,188
1,29,32,958
1,63,38,643
1,87,33,200
1,87,33,200
5,01,16,888
4,79,60,856
4,76,84,337
3,98,05,961
3,33,76,333
3,22,23,338
3,07,22,708
2,55,70,906
2,27,74,486
2,03,83,993
1,87,67,150
1,52,88,949
1,45,56,217
1,34,31,308
1,29,88,293
1,22,50,482
1,14,90,746
1,14,90,746
4,70,23,060
5,00,20,060
4,70,23,032
4,71,83,032
4,71,82,999
4,84,34,936
5,14,84,083
5,14,84,036
5,14,82,970
5,13,22,970
5,13,24,857
5,13,24,666
5,09,59,666
3,92,14,143
4,14,91,147
4,08,91,147
% of total
shares
of the
company
1.19
1.21
1.21
1.21
0.18
0.22
0.28
0.32
0.48
0.60
0.69
0.69
1.85
1.77
1.76
1.47
1.23
1.19
1.14
0.95
0.84
0.75
0.69
0.57
0.54
0.50
0.48
0.45
0.42
0.42
1.74
1.85
1.74
1.74
1.74
1.79
1.90
1.90
1.90
1.90
1.90
1.90
1.88
1.45
1.53
1.51
171
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
Sl.
No
Name of the
Shareholder
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in Shareholding
Cumulative Shareholding
during the year
No. of
shares
% of total
shares
of the
company
13 Mahout
2,71,66,790
1.00
Global
Emerging
Markets
Leaders Fund,
A Sub-Fund of
The Mahout
Delaware
Statutory Trust
172
02.08.2019 Purchase of Shares
09.08.2019 Purchase of Shares
16.08.2019 Purchase of Shares
23.08.2019 Purchase of Shares
30.08.2019 Sale of Shares
30.08.2019 Purchase of Shares
06.09.2019 Sale of Shares
06.09.2019 Purchase of Shares
13.09.2019 Sale of Shares
20.09.2019 Sale of Shares
27.09.2019 Sale of Shares
30.09.2019 Purchase of Shares
04.10.2019 Purchase of Shares
11.10.2019 Sale of Shares
25.10.2019 Purchase of Shares
01.11.2019 Purchase of Shares
22.11.2019 Purchase of Shares
29.11.2019 Sale of Shares
29.11.2019 Purchase of Shares
20.12.2019 Purchase of Shares
27.12.2019 Sale of Shares
31.12.2019 Sale of Shares
10.01.2020 Purchase of Shares
17.01.2020 Sale of Shares
07.02.2020 Sale of Shares
14.02.2020 Purchase of Shares
21.02.2020 Purchase of Shares
28.02.2020 Purchase of Shares
06.03.2020 Sale of Shares
06.03.2020 Purchase of Shares
20.03.2020 Sale of Shares
31.03.2020 Purchase of Shares
31.03.2020 At the end of the year
27.09.2019 Sale of Shares
30.09.2019 Sale of Shares
08.11.2019 Sale of Shares
15.11.2019 Sale of Shares
06.12.2019 Sale of Shares
20.12.2019 Sale of Shares
03.01.2020 Sale of Shares
24.01.2020 Sale of Shares
28.02.2020 Sale of Shares
06.03.2020 Sale of Shares
13.03.2020 Sale of Shares
20.03.2020 Sale of Shares
31.03.2020 At the end of the year
No. of
shares
10
9
6
2,61,011
-6,30,000
18,007
-4
20
-89,94,000
-2,05,15,460
-60,00,168
2,79,000
5
-4
10
2
6
-4,05,000
5
63,000
-107
-19
13,01,000
-15
-2
1,011
5
1,025
-40,00,042
1
-5,22,853
14
-
-10,95,337
-1,40,481
-20,32,972
-53,72,257
-35,41,966
-5,02,914
-29,91,572
-16,31,955
-7,54,467
-67,79,433
-8,69,303
-14,54,133
-
% of total
shares
of the
company
0.00
0.00
0.00
0.01
-0.02
0.00
0.00
0.00
-0.33
-0.76
-0.22
0.01
0.00
0.00
0.00
0.00
0.00
-0.01
0.00
0.00
0.00
0.00
0.05
0.00
0.00
0.00
0.00
0.00
-0.15
0.00
-0.02
0.00
-
-0.04
-0.01
-0.08
-0.20
-0.13
-0.02
-0.11
-0.06
-0.03
-0.25
-0.03
-0.05
-
No. of
shares
4,08,91,157
4,08,91,166
4,08,91,172
4,11,52,183
4,05,22,183
4,05,40,190
4,05,40,186
4,05,40,206
3,15,46,206
1,10,30,746
50,30,578
53,09,578
53,09,583
53,09,579
53,09,589
53,09,591
53,09,597
49,04,597
49,04,602
49,67,602
49,67,495
49,67,476
62,68,476
62,68,461
62,68,459
62,69,470
62,69,475
62,70,500
22,70,458
22,70,459
17,47,606
17,47,620
17,47,620
2,71,66,790
2,60,71,453
2,59,30,972
2,38,98,000
1,85,25,743
1,49,83,777
1,44,80,863
1,14,89,291
98,57,336
91,02,869
23,23,436
14,54,133
0
0
% of total
shares
of the
company
1.51
1.51
1.51
1.52
1.50
1.50
1.50
1.50
1.17
0.41
0.19
0.20
0.20
0.20
0.20
0.20
0.20
0.18
0.18
0.18
0.18
0.18
0.23
0.23
0.23
0.23
0.23
0.23
0.08
0.08
0.06
0.06
0.06
1.00
0.96
0.96
0.88
0.68
0.55
0.54
0.42
0.36
0.34
0.09
0.05
0.00
0.00
The Tata Power Company Limited Integrated Annual Report 2019-20
v)
Shareholding of Directors and Key Managerial Personnel:
Sl.
No.
Name of the
Director/ Key
Managerial
Personnel
Shareholding at the
beginning of the year
(as on 01.04.2019)
Date
Reason
Increase/
Decrease in
Shareholding
Cumulative
Shareholding
during the year
No. of
shares
0
0
0
% of total
shares of
the company
0.00
0.00
0.00
16,262
0.00
0
0
0
0
0
0
0
0
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1
2
3
4
5
6
7
8
9
Mr. N.
Chandrasekaran
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V.
Bhandarkar #
Mr. K. M.
Chandrasekhar
Mr. Hemant
Bhargava
Mr. Saurabh
Agrawal
Mr. Banmali
Agrawala
Mr. Ashok Sinha
(w.e.f 02.05.2019)
10 Mr. Praveer Sinha,
CEO & Managing
Director
11 Mr. Nawshir H. Mirza
(upto 12.08.2019)
12 Mr. Deepak M.
Satwalekar
(upto 12.08.2019)
13 Mr. Ashok S. Sethi
20,600
0.00
(upto 30.04.2019)
14 Mr. Ramesh
0
0.00
Subramanyam,
Chief Financial Officer
15 Mr. Hanoz M.
Mistry,
Company
Secretary
27,005
0.00
No. of
shares
% of total
shares of
the company
No. of
shares
16.03.2020 Purchase of Shares
31.03.2020 At the end of the year
2,00,000
-
- No change
31.03.2020 At the end of the year
- No change
31.03.2020 At the end of the year
- No change
31.03.2020 At the end of the year
- No change
31.03.2020 At the end of the year
- No change
31.03.2020 At the end of the year
- No change
31.03.2020 At the end of the year
No change
31.03.2020 At the end of the year
-
No change
31.03.2020 At the end of the year
-
No change
31.03.2020 At the end of the year
-
- No change
12.08.2019 At the end of the period
- No change
12.08.2019 At the end of the period
- No change
30.04.2019 At the end of the period
- No change
31.03.2020 At the end of the year
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
0
-
22.11.2019 Sale of Shares
22.11.2019 Purchase of Shares
29.11.2019 Sale of Shares
13.12.2019 Sale of Shares
31.03.2020 At the end of the year
@ -8,560
@ 8,560
@ -2,853
@ -2,854
-
0.00
-
0.00
-
0.00
-
0
0.01 2,00,000
- 2,00,000
0
0
0
0
0
0
16,262
16,262
16,262
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
0.00
0.00
-
0
0
0
0
0
0
0
0
0
20,600
20,600
0
0
0
* 27,005
18,445
27,005
24,152
21,298
21,298
# All the 16,262 shares are held as second holder.
* Out of 27,005 shares, 15,286 shares are held as second holder.
@ 8,560 shares as second holder have been distributed in family as per devolution of assets.
% of total
shares of
the company
0.00
0.01
0.01
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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
173
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
V.
Indebtedness
Indebtedness of the Company including interest outstanding/accrued but not due for payment
Particulars
Indebtedness at the beginning of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i+ii+iii)
Change in Indebtedness during the financial year
• Addition
• Reduction
Net Change
Indebtedness at the end of the financial year
i) Principal Amount
ii) Interest due but not paid
iii) Interest accrued but not due
Total (i + ii + iii)
Figures in ₹ crore
Unsecured
Loans
Deposits
Total
Indebtedness
Secured
Loans
excluding
deposits
6,041.78
11,410.74
-
41.96
-
147.13
6,083.74
11,557.87
1,470.00
33,250.65
(1,753.34)
(32,605.03)
(283.34)
645.62
5,757.43
12,044.23
-
42.97
-
159.26
5,800.40
12,203.49
-
-
-
-
-
-
-
-
-
-
-
17,452.52
-
189.09
17,641.61
34,720.65
(34,358.37)
362.28
17,801.66
-
202.23
18,003.89
(₹)
VI. Remuneration Of Directors And Key Managerial Personnel
A.
Remuneration to Managing Director, Whole-time Director and/or Manager:
Sl. No. Particulars of Remuneration
Name of MD/WTD/Manager
Total Amount
Mr. Praveer Sinha,
CEO &
Managing Director
Mr. Ashok S. Sethi,
COO &
Executive Director
(upto 30.04.2019)*
2,11,71,818
16,82,600
2,28,54,418
20,34,499
1,31,073
21,65,572
Gross salary
(a)
Salary as per provisions contained in section
17(1) of the Income-tax Act, 1961
Value of perquisites u/s 17(2) of the
Income-tax Act, 1961
Profits in lieu of salary under section 17(3) of
the Income-tax Act, 1961
(b)
(c)
Nil
Nil
Nil
Nil
Stock Option
Sweat Equity
Commission&
-
-
Others, Retirement Benefits
Total
Ceiling as per Act (@ 10% of profit calculated under Section 198 of the Companies Act, 2013)
as % of profit
others, specify... (performance based)
-
2,75,00,000
26,24,400
5,33,30,717
Nil
Nil
-
Nil
3,36,00,667
3,54,14,340
Nil
Nil
Nil
-
2,75,00,000
3,62,25,067
8,87,45,057
₹ 40.21 crore
1.
2.
3.
4.
5.
* As Mr. Ashok S. Sethi superannuated on 30th April 2019, no commission is payable to him for FY20.
& Commission relates to the financial year ended 31st March 2020, which will be paid during FY21.
174
The Tata Power Company Limited Integrated Annual Report 2019-20
B.
Remuneration to other directors:
Sl. No. Name of Directors
Particulars of Remuneration
Commission
payable for
FY20&
Others,
please specify
Fee for
attending
board /
committee
meetings*
(₹)
Total
Amount
I.
1.
2.
3.
4.
5.
6.
7.
II.
1.
2.
3.
4.
3,90,000
4,80,000
4,50,000
3,00,000
2,70,000
1,50,000
1,20,000
21,60,000
Independent Directors
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. K. M. Chandrasekhar
Mr. Ashok Sinha (w.e.f. 02.05.2019)
Mr. Nawshir H. Mirza (upto 12.08.2019)
Mr. Deepak M. Satwalekar (upto 12.08.2019)
Total (I)
Other Non-Executive Directors
Nil
Mr. N. Chandrasekaran $
40,00,000
Mr. Hemant Bhargava @
Nil
Mr. Saurabh Agrawal #
Nil
Mr. Banmali Agrawala #
40,00,000
Total (II)
Total Managerial Remuneration (I + II)
3,38,00,000
Ceiling as per Act (@ 1% of profit calculated under Section 198 of the Companies Act, 2013)
51,00,000
58,00,000
55,00,000
51,00,000
40,00,000
24,00,000
19,00,000
2,98,00,000
2,40,000
1,80,000
2,40,000
2,40,000
9,00,000
30,60,000
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
54,90,000
62,80,000
59,50,000
54,00,000
42,70,000
25,50,000
20,20,000
3,19,60,000
2,40,000
41,80,000
2,40,000
2,40,000
49,00,000
3,68,60,000
₹ 4.02 crore
Excludes GST
*
& Commission relates to the financial year ended 31st March 2020, which will be paid to the eligible Directors during FY21.
$
@
#
As a policy, Mr. N. Chandrasekaran, Chairman, has abstained from receiving Commission from the Company.
The Sitting Fees for attending meetings are paid to Mr. Bhargava and the Commission will be paid to LIC.
In line with the internal guidelines of the Company, no payment is made towards Commission to the Non-Executive Directors of the
Company, who are in full time employment with another Tata Company.
C.
Remuneration to Key Managerial Personnel other than MD/Manager/WTD
(₹)
Sl. No. Particulars of Remuneration
Key Managerial Personnel
Total
1.
2.
3.
4.
5.
Gross salary
(a)
Salary as per provisions contained in section 17(1)
of the Income-tax Act, 1961
Value of perquisites u/s 17(2) of the
Income-tax Act, 1961
Profits in lieu of salary under section 17(3) of the
Income-tax Act, 1961
(b)
(c)
Stock Option
Sweat Equity
Commission
-
-
as % of profit
others
Others, Retirement Benefits
Total
* Includes Performance Pay for FY19 paid in FY20.
Mr. R. N.
Subramanyam,
Chief Financial Officer
Mr. H. M. Mistry,
Company Secretary
3,38,20,340
*
1,13,08,939
*
4,51,29,279
*
37,82,857
9,28,414
47,11,271
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
8,79,365
10,17,107
18,96,472
3,84,82,562
1,32,54,460
5,17,37,022
175
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Board's Report
VII. Penalties / Punishment/ Compounding Of Offences:
Type
Section of the
Companies Act
Brief
Description
Details of Penalty/
Punishment/
Compounding
fees imposed
Authority
[RD/NCLT/
COURT]
Appeal made,
if any
(give details)
None
None
None
On behalf of the Board of Directors,
N. Chandrasekaran
Chairman
(DIN: 00121863)
A.
COMPANY
Penalty
Punishment
Compounding
B.
DIRECTORS
Penalty
Punishment
Compounding
C. OTHER OFFICERS IN DEFAULT
Penalty
Punishment
Compounding
Mumbai, 19th May 2020
176
The Tata Power Company Limited Integrated Annual Report 2019-20
Annexure - IX : DISCLOSURE OF MANAGERIAL REMUNERATION
Ref.: Board's Report, Section 27)
a)
The ratio of the remuneration of each director to the
median remuneration of the employees of the Company for
the financial year:
b)
The percentage
in remuneration of each
director, Chief Financial Officer, Chief Executive Officer,
Company Secretary or Manager, if any, in the financial year:
increase
Name of Director
Mr. N. Chandrasekaran $
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. K. M. Chandrasekhar
Mr. Hemant Bhargava
Mr. Saurabh Agrawal #
Mr. Banmali Agrawala #
Mr. Ashok Sinha ^
Mr. Praveer Sinha, CEO and
Managing Director
Mr. Nawshir H. Mirza *
Mr. Deepak M. Satwalekar *
Mr. Ashok S. Sethi, COO &
Executive Director @
Ratio of Director’s
remuneration to the
median remuneration
of the employees
of the Company for
the financial year
-
3.48
3.98
3.77
3.42
2.65
-
-
N.A.&
33.76
N.A.&
N.A.&
N.A.&
Name of Director and
Key Managerial Personnel
Percentage increase
in remuneration in
the financial year
Mr. N. Chandrasekaran $
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. K. M. Chandrasekhar
Mr. Hemant Bhargava
Mr. Saurabh Agrawal #
Mr. Banmali Agrawala #
Mr. Ashok Sinha ^
Mr. Praveer Sinha, CEO and
Managing Director (KMP)
Mr. Nawshir H. Mirza *
Mr. Deepak M. Satwalekar *
Mr. Ashok S. Sethi, COO &
Executive Director (KMP) @
Mr. Ramesh N. Subramanyam,
Chief Financial Officer (KMP)
Mr. Hanoz M. Mistry,
Company Secretary (KMP)
-
1.29
15.23
-1.49
23.85
100.00
-
-
N.A.!
19.96
N.A.!
N.A.!
N.A.!
12.31
11.72
$
#
^
*
As a policy, Mr. N. Chandrasekaran, Chairman, has abstained from receiving Commission from the Company and hence not stated.
In line with the internal guidelines of the Company, no payment is made towards Commission to the Non-Executive Directors of the
Company, who are in full time employment with another Tata Company and hence not stated.
Mr. Ashok Sinha was appointed as an Independent Director with effect from 2nd May 2019.
Mr. Mirza and Mr. Satwalekar ceased to be directors with effect from close of business hours on 12th August 2019, consequent upon
completion of their term as Independent Directors.
@ Mr. Sethi superannuated as COO & Executive Director of the Company with effect from close of business hours on 30th April 2019.
&
Since the remuneration is only for part of the year, ratio of their remuneration to median remuneration is not comparable and
hence, not stated.
!
Since the remuneration is only for part of the year, percentage increase is not comparable and hence, not stated.
177
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Board's Report
c)
The percentage increase in the median remuneration of
employees in the financial year: 45.19%.
f)
d)
The number of permanent employees on the rolls of the
company: 3,156.
e)
Average percentile increase already made in the salaries of
Affirmation
remuneration policy of the Company:
remuneration
that
the
is as per
the
is affirmed that the remuneration
is as per the
It
'Remuneration Policy
for Directors, Key Managerial
Personnel and other employees' adopted by the Company.
employees other than the managerial personnel in the last
On behalf of the Board of Directors,
financial year, its comparison with the percentile increase
in the managerial remuneration, justification thereof and
point out if there are any exceptional circumstances for
Mumbai, 19th May 2020
N. Chandrasekaran
Chairman
(DIN: 00121863)
increase in the managerial remuneration:
•
Average percentile
increase
in the salaries of
employees other
than managerial personnel
was 4%.
•
Average
increase
in
remuneration
of
Managers (defined as MD and ED on the Board of
your Company) was 19.96%.
As Mr. Ashok S. Sethi superannuated as COO & Executive
Director of the Company with effect from close of business
hours on 30th April 2019, his remuneration is not comparable
for the
in
remuneration.
purpose of calculating aforesaid
increase
178
The Tata Power Company Limited Integrated Annual Report 2019-20
Management Discussion & Analysis
1.
Industry Developments
Global Power Sector
The global power sector is witnessing a rapid change with
the influx of renewable energy in the power portfolio mix
as all nations rise to the challenge of climate change. In
addition, Electric vehicles, Digitalisation, Grid scale energy
storage, Cyber Security, Big Data Analytics, Energy Access
to all and Demand Side Management are going to create a
visible impact on the sector and the way it operates in the
coming years. With energy sources moving to the edge of
the grid, the role of players in the sector is also undergoing
a change, necessitating a move from conventional
methods to service delivery to becoming energy solution
providers for the end consumers.
changing energy
landscape, global
Amidst a
power utilities are capitalising on
the growth
opportunities presented by clean energy. Power
market developments are likely to undergo further
transformation with changes in policy actions and
technological advancements. Focus on environmental
sustainability on the back of climate change, customer
demand for clean energy sources and commitment
to help customers optimise energy consumption and
enable savings, are driving power utility companies
in the U.S. and Europe to increasingly adopt green
energy solutions and raise the bar on climate change.
A U.S. utility was the first to commit to a ‘100% carbon-
free’ initiative by 2050, and 80% by 2030. Several
Europeans nations have formulated renewable energy
targets which include increasing share of renewables
portfolio in the power generation mix by 2030, while
also planning to phase out coal by that time. Similar
announcements have gathered pace worldwide.
Renewables have become the preferred mode for
energy generation and sourcing. The gradual reduction
in costs supported by favourable Government policies
are bringing about a positive change in the electricity
generation mix. As per the International Energy Agency
(IEA), the share of renewables is expected to be 44% by
2040, from the current level of 26%. The resulting impact of
this would be the decline in coal-based power generation
from 38% to 25% during the same period. Natural gas
enabled generation is set to increase by 50% by 2040,
driven by low-cost availability of shale gas. However, as
rural and semi-urban electrification continues in most
developing economies, affordability and ease-of-access
are at the core of consumer demand, and these continue
to be met by coal-based generation, especially in the
developing markets of Africa and Asia. Global coal prices
are stabilising as a result of increasing demand of certain
developing economies, off-set by declining requirements
of advanced economies. The global coal prices fell from
a high of USD 120/MT (Newcastle FOB) in July 2018 to
USD 66/MT in March 2020.
With the changing scenario in the global energy market
in terms of oil prices and renewable power generation
costs, the oil-exporting Middle-East countries have
devised economic diversification plans. As a means of
diversifying its power mix, the MENA (Middle East and
North Africa) region is increasingly shifting its focus
towards renewables and setting long-term targets for
clean energy development. While Morocco’s target is to
generate 52% energy through renewable energy sources
by 2030, the same for Dubai stands at attaining 75% level
by 2050. Saudi Arabia is host to the largest programme
of planned projects. The country set an ambitious target
of developing 60 GW (60,000 MW) of Renewable Energy
(RE) capacity by 2030, scaling up manifold from the
current capacity of 100 MW. The region has witnessed
large
in renewables, driving some of
the economically viable solar PV and onshore wind
projects globally.
investments
With coal-based generation unlikely to wane away,
a balanced approach aligned to the environmental
responsibility is being explored. Technologies including
blended power, carbon capture utilisation and storage
(CCUS), or biomass co-firing equipment, are being
explored depending upon the markets and economic
viability and implications, given the high cost associated
with such an approach.
Electricity access in Africa is the biggest concern, with
half of the population in sub-Saharan Africa having no
access to power. The region is making progress and
with that the rising demand needs have to be met with
corresponding increase in supply, requiring significant
expansion of the power system. Electricity output in
the region is expected to increase from 225 TWh to
900 TWh by 2040, mainly supplied by on-grid power,
though decentralised solutions are also being adopted,
as declining costs of solar PV and battery storage
technologies make these solutions more competitive
and economically viable.
Electricity access is also one of the core focus areas of
ASEAN countries, and Southeast Asia is making steady
progress towards achieving universal electricity access
by 2030. The region’s electricity demand is growing at a
rapid rate of 6% per annum and this demand is primarily
lower generation
met by thermal power, given
costs and abundant supply of fuel source. Although
dominance of coal in power generation mix is expected
to continue, the declining costs of renewables, concerns
over emissions and pollution accompanied by financing
difficulties of coal projects, have started tilting the
scales in favour of RE projects. Recent revisions to policy
planning documents have been made to boost the long-
term share of renewables, backed by private finance and
policy incentives.
its
179
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Given the focus on electricity access to all, microgrids is
another area that is garnering attention. The demand
for microgrids too
is gaining momentum with the
backing of the need for resiliency, energy security and
electrification of rural and under-penetrated areas in a
cost-effective manner without the requirement to extend
the conventional grids.
Another major global focus has been the adoption
of Electric Vehicles (EV). EV deployment targets are
witnessing upticks globally,
thereby encouraging
industry participants to invest in the EV supply chain.
Large power utilities in Europe have been investing in EV
charging infrastructure. Oil majors are also participating
through acquisitions.
With power generation through decentralised renewable
energy sources gaining prominence, the same has also
created requirement for deployment of storage solutions
to accommodate
the heightened demand. Many
countries including the U.S., China, Germany and India
are investing in energy storage projects to support power
sector transformation and the cost of energy storage
has been witnessing a downward trend with increasing
advancements in technology.
The power industry is transforming into a technology
business as the utilities adapt to the evolving diverse needs
of the customers and invest resources in development
and adoption of new technologies. With more and more
systems getting intelligent and connected, Cyber Security
has emerged as an area of interest and concern in the
power sector and most of the utilities are investing heavily
in making their system robust and secure. Data Analytics
is another area that is gaining prominence in the current
scenario, with the increasing requirements of customised
service delivery and
in operational
infusion of
excellence. Further, with the
decentralised generation, EVs, the demand supply
scenario has become dynamic and requires accurate load
and supply forecasting (including weather forecasting) to
ensure stability and robustness of the grid.
improvement
increasing
All the aforementioned factors, coupled with the need
for affordable, sustainable and modern energy systems,
is shaping the global power sector and opening business
service opportunities for power utilities. This wave of
change is not just limited to the power companies, but is
also opening-up business opportunities for other industry
groups like automobile and oil majors, which have been
actively participating in this transition through business
diversification, acquisition and collaboration with
power utilities.
180
Indian Power Sector
India’s demand for power is expected to grow at an
average rate of 6% (as per the Ministry of Power’s Five
Year Vision Document), led by industrial and residential
consumers. This is, however, expected to take a hit in
FY21, on account of the COVID-19 pandemic that has
put the entire nation under lockdown, affecting power
demand from high paying industrial and commercial
segments. Power demand already witnessed a decline
of more than 20% during the lockdown period. Moving
ahead, the revival of economic activity coupled with the
Government’s push towards 24x7 power for all, should
provide the impetus to electricity demand growth in the
country. While coal is expected to remain a significant
fuel source in the country’s quest to provide power to
every citizen, its growth would diminish in the coming
years. The Government will focus on limited thermal
capacity additions to be undertaken only by the Central
and State utilities, primarily against retirals. It is focussing
on RE growth in alignment to the sustainability and
carbon emission reduction targets with an intent to
increase the RE capacity 3-fold from the targeted level
of 175 GW in 2022 to 500 GW by 2030. Measures to curb
emissions by thermal power plants are also in place.
These include installation of Flue Gas Desulphurisation
(FGD) to reduce SO2 from exhaust flue-gas. The deadline
for the same has been extended to December 2022.
Actions are being taken to shut down coal-fired plants
that fail to meet emission standards.
is
focus
through
the TBCB
inflows by private players
space has been on private
in the transmission and
The Government’s
sector
distribution
in
participation. Fund
Transmission
(tariff based
competitive bidding) route. The distribution segment
is also witnessing entry of private players through
Public Private Partnerships (PPP) or franchisee models,
in a bid to reduce high AT&C losses across India. The
financial stress of Distribution companies (Discoms) is
limiting their ability to make payments to the generation
companies, thus adding on to the stress in the sector. The
sector has Non-Performing Assets (NPAs) to the tune of
` 2 trillion, resulting in cautious lending to the sector by
banks and financial institutions. However, a lot of efforts
have been made to resolve this issue through various
Government interventions. Out of the total 40 GW of
stressed capacity, around 10 GW have been resolved –
the recent acquisition of Prayagraj Power Generation
Company Limited (PPGCL) by Resurgent Power Ventures
Pte. Limited (Resurgent) being one such example.
Emphasis now lies on the remaining assets.
The Tata Power Company Limited Integrated Annual Report 2019-20
Generation
India’s installed generation capacity stands at 370 GW
as on 31st March 2020, which excludes 55 GW of captive
generation capacity. Grid connected capacity addition
during FY20 was 14 GW vis-à-vis 12 GW in FY19.
Thermal Generation
Coal-based capacities have accounted for more than half
of India’s total installed capacity over the last 10 years
(FY20 vs FY10), while that of renewables has risen from
9% to 23%. The PLF of thermal plants have witnessed a
declining trend in the last decade, falling to 56.08% in
FY20 from 77.5% in FY10.
towards
commitment
Renewable Generation
The Government’s
carbon
reduction accompanied by declining costs of renewables,
have provided the impetus for rapid increase in renewable
based capacities. The overall renewables addition during
FY20 was 9 GW as against 8.6 GW during the previous year.
Issues like safeguard duty, renegotiation of contracts, land
availability, financing constraints and delayed payments
by Discoms, have impacted RE projects. The tariffs have
also risen from the lows of ` 2.44/unit to the range of
` 2.8-2.9/unit, with the rise in ceiling tariffs.
INDIA GENERATION MIX (IN GW)
CAGR (%)
Installed capacity (GW)
9%
4%
4%
2%
19%
19%
9
9
1
4
8
7
8
6
4
7
3
5
2
7
1
75
6
1
7
1
Coal
Gas
Nuclear
Hydro Renewables Others
FY10
FY20
(Source: MoP, GoI, CEA)
Fuel
Coal produced by Coal
its
subsidiaries declined by 0.8% during FY20 to 602 MT
from 607 MT in the previous fiscal. Extended monsoons
posed challenges for supporting growth in domestic coal
production, which might have necessitated coal imports
India Limited (CIL) and
by power utilities. Thermal coal imports grew by 3%
y-o-y in FY20, supported by declining international coal
prices in 2019.
GLOBAL COAL PRICE AND
INDIA’S COAL IMPORTS
140
120
100
80
60
40
20
0
)
n
t
/
D
S
U
(
e
c
i
r
P
l
a
o
C
8
1
-
r
p
A
8
1
-
y
a
M
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
)
T
M
(
s
t
r
o
p
m
I
l
a
o
C
0
2
-
b
e
F
0
2
-
r
a
M
9
1
-
y
a
M
9
1
-
n
u
J
9
1
-
l
u
J
9
1
-
g
u
A
9
1
-
p
e
S
9
1
-
t
c
O
9
1
-
v
o
N
9
1
-
c
e
D
0
2
-
n
a
J
8
1
-
p
e
S
8
1
-
t
c
O
8
1
-
v
o
N
8
1
-
c
e
D
9
1
-
n
a
J
9
1
-
b
e
F
9
1
-
r
a
M
9
1
-
r
p
A
8
1
-
n
u
J
8
1
-
l
u
J
8
1
-
g
u
A
Global Coal Price Movement (USD/tn)
Coal Import by Power Plant (MT)
(Source: World Bank, CEA)
Transmission
The backbone transmission system in India is mainly
through 765 kV, 400 kV and 220 kV AC networks, with
the highest transmission voltage level being 800 kV
(HVDC). Total transmission lines and substation capacity
reached nearly 4.23 lakh Ckms and 9.62 MVA respectively,
reflecting an increase of about 10,226 Ckms and 62,760
MVA over the previous year.
With the changing power generation mix on account of
increase in renewables, the Government is emphasising
on augmenting the transmission infrastructure to support
demand growth. In order to expedite the development of
transmission lines for solar parks under Green Corridor-
II (Under Green Corridor-I, Power Grid Corporation of
India Limited (PGCIL) is responsible for strengthening
inter-state
transmission networks and constructing
transmission network for connecting RE-rich states) and
open-up private participation, which is still limited to 7%,
the Government has decided to award these projects
to private players through tariff based competitive
bidding (TBCB).
The National Electricity Plan (Volume II-Transmission) i.e. NEP-
Trans, has been notified to review the development of the
transmission system during the 12th Plan Period, the current
planning period 2017-22 and the subsequent period 2022-27.
Distribution
The distribution segment has been plagued by a host of
issues resulting in its deteriorating financial health. The sector
has been at the forefront of major power sector reforms and
policy developments in the country. The current outstanding
debt of ` 4.3 lakh crore is largely due to delayed payments,
issues around tariff rationalisation and subsidy disbursement
constraints. UDAY scheme is yet to yield the desired results
181
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
both in terms of financial and operational parameters and
meet the objective and intent behind its launch. The AT&C
loss level stands at about 20%, which is on the higher side
compared to the FY19 target of 15% set by the scheme.
ALL INDIA AT&C LOSS, %
.
2
7
5
2
5
1
Y
F
.
6
9
3
2
6
1
Y
F
6
5
3
2
.
7
1
Y
F
.
1
3
2
2
8
1
Y
F
.
*
0
0
2
9
1
Y
F
*This is provisional
(Source: PFC Report on Performance of State Power Utilities 2017-18,
UDAY portal)
indicating stress
the ` 90,000 crore
to generation
The outstanding dues of Discoms
in
level
companies crossed
February 2020,
in the sector. The
Government is working towards addressing these issues
and helping improve the financial situation of the power
sector through various measures. It introduced the Letter
of Credit (LoC) in August 2019 to ensure payment security.
This has led to some improvements in receivables.
As per the 7th Annual Integrated Rating, a methodology
formulated by the Ministry of Power for evaluation of
performance of the State Power Distribution utilities on
a range of parameters covering operational, financial,
regulatory and reform measures, 16 out of 41 Discoms
were rated as A+ or A as against 7 Discoms in the
previous rating.
While a few state Discoms have started considering a
distribution franchisee route in certain areas to help
reduce the AT&C losses, many Discoms like Rajasthan,
Uttar Pradesh, Madhya Pradesh and Odisha are evaluating
options of privatisation through the PPP model. Central
Electricity Supply Utility
(CESU), Odisha has been
privatised and the process of privatisation of the remaining
Discoms of the state (WESCO, NESCO and SOUTHCO) are
at advanced stages. The distribution sector is expected
to pave the way for opportunities in the services segment
like smart meters, smart grids, LED street lighting and
advisory services projects.
182
The Government of India has made steadfast progress
towards universal electricity access by covering 99.93%
households through the Saubhagya scheme. The focus
is now on penetrating deeper into the isolated regions of
the country and ensuring 24x7 power supply for all. The
microgrids will play a crucial role in enabling this.
Power Trading
Around 140 billion units (BUs) of electricity were traded in
the short-term power market during FY20, as compared
to a total of 145.2 BUs traded during FY19. Out of this,
about 35% 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 37 in FY19.
At ` 3.005 per unit, the average clearing price for spot
markets in FY20 decreased by 22% as compared to the
previous fiscal. The decrease in spot price is largely
attributable to lower demand, primarily because of
the downward impact of COVID-19 in March 2020 on
the economy and the manufacturing sector, and the
availability of higher merchant capacity for power sale on
exchange platforms.
Regulatory And Policy Developments
Regulatory and policy reforms in the sector are critical, given
the current challenges across the value chain. The Ministry of
Power released a revised draft of the Electricity Amendment
Bill 2020 that seeks privatisation of Discoms through
franchisees or sub-licencing, recommends formation of
Electricity Contract Enforcement Authority (ECEA) for
enforcement of contractual obligation and proposes the
National Renewable Energy Policy for promotion of RE
generation. It also proposes retail tariff determination to be
without subsidy and introduced the Direct Benefit Transfer
(DBT) scheme for any subsidy disbursal.
The following are some of the important regulatory and
policy changes introduced in FY20:
Maharashtra:
y Maharashtra Electricity Regulatory Commission (MERC)
notified the Multi Year Tariff (MYT) Regulations, 2019,
applicable for the Control Period from FY21 to FY25,
wherein the Commission has linked the recovery
of additional Return on Equity (RoE), in addition to
the base RoE to improvement in efficiency in actual
performance of the Generating Company, Transmission
Licensee and Distribution Wires Business. Additionally,
the Regulations provide that rate of RoE, including
additional rate of RoE, shall be grossed up with the
effective tax rate of respective financial year instead
of the earlier approach of reimbursement of tax on
income computed on Profit Before Tax (PBT).
The Tata Power Company Limited Integrated Annual Report 2019-20
In addition, the most prominent
impact of this
Regulation includes no reduction of equity for older
plants, incentives on making higher power generation
during peak hours.
For Hydro generating stations, incentive on excess
generation from saleable Design Energy has been
increased from existing 90 paise/unit to 120 paise/
unit and rate of depreciation on batteries has been
increased from existing 5.28% to 18%.
y MERC notified the Deviation Settlement Mechanism
(DSM) Regulations, 2019. As per the said Regulations,
the energy accounting and deviation settlement will
no longer be as per the Final Balancing and Settlement
Mechanism (FBSM) and the provisions under the DSM
Regulations will override the FBSM. The Commission
vide the said Regulations has set the Deviation Volume
Limit for each utility and the consequential penalty for
under-drawing or over-drawing beyond the defined
limit. Further, a pass through of such penalty as part of
the Annual Revenue Requirement (ARR) of the utility
will not be allowed.
y MERC notified the Guidelines for operation of Merit
Order Despatch under Availability Based Tariff
Order applicable from 1st April 2019 onwards wherein
the Distribution Utility wise Merit Order Despatch
(MOD) stack shall be prepared by Maharashtra State
Load Despatch Centre (MSLDC) as compared to
the state-wise MOD stack being prepared before
the notification of the aforesaid guidelines. Hence,
a Distribution Utility can now have access to the
lowest variable cost generator tied up with another
Distribution Utility only through an
independent
commercial arrangement. The guideline also put in
place ‘zero schedule’ and ‘Reserve Shut Down (RSD)’ for
generating stations in addition to specifying technical
minimum for their operation.
incremental Demand Charges
y In June 2019, MERC amended the MERC Distribution
Open Access Regulations, 2016. MERC has introduced
conditions of Notional Contract Demand and levy
of
in cases where
consumers, who do not opt for reduction in Contract
Demand up to Open Access Capacity. In addition,
the duration of the term of open access has been
redefined. Further, repeated Short Term Open Access
applications will be levied with additional transmission
charges. Deviation Charges have been brought in line
with the DSM Regulations (from its effective date). The
Commission has also permitted banking of energy on
a monthly basis.
MERC has also made similar amendments in the MERC
Transmission Open Access Regulations, 2016.
y All generating companies and utilities in Maharashtra
submitted tariff petitions to MERC seeking approval
of True-up of Aggregate Revenue Requirement (ARR)
for FY18 and FY19, Provisional True-up of Aggregate
Revenue Requirement for FY20, and approval of ARR
and Tariff for the MYT 4th Control Period from FY21 to
FY25 for its Generation, Distribution and Transmission
Business in November 2019. Subsequently, public
notices were issued followed by public hearings seeking
suggestions and objections from the public at large.
After prudence check of the respective tariff petitions,
the MERC has issued the Orders for the Generation,
Distribution and Transmission Business approving
the tariff largely in line with the tariff applications
submitted by the Company. The new tariffs are
applicable from 1st April 2020 onwards.
Renewables
y MERC issued Grid Interactive Rooftop Renewable
Energy Generating Systems Regulations, 2019.
The Regulations apply to Net Metering Arrangements,
Net Billing Arrangements and Grid Connected
Renewable Energy Generating Systems connected
behind the Consumer’s meter, for those who have
not opted either for Net Metering Arrangement or
Net Billing Arrangement. The purpose of the said
Regulation is to introduce modifications in certain
clauses vis-à-vis the clauses specified in the MERC Net
Metering Regulations, 2015 based on the experiences in
implementation of the Net Metering Regulations, and
in order to simplify/clarify/amend certain provisions as
considered reasonable.
y MERC issued Terms and Conditions for Determination
of Renewable Energy Tariff Regulations, 2019 and
Renewable Purchase Obligation, its Compliance
Implementation of Renewable Energy
and
Certificate Framework Regulations, 2019.
CERC & JSERC
y CERC (Sharing of Revenue Derived from Utilisation
of Transmission Assets for Other Business)
Regulations, 2020
CERC issued the above Regulation, which is applicable to
the inter-state transmission licensees who are proposing
to undertake other business. This Regulation defines the
manner of sharing of revenue from other business and
the consequential reduction of transmission charges
payable by the long-term customers of the transmission
assets in proportion to the transmission charges payable
by them to the transmission licensee. In case the
transmission licensee engages in telecommunication
business, an amount equal to 10% of the gross revenue
from such business in a given financial year shall be
shared with the long-term customers. In case the other
business is not a telecommunication business, the
183
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
sharing of revenue shall be decided by the Commission
on a case-to-case basis based on transmission assets
utilised for such other business.
y Jharkhand State Electricity Regulatory Commission
(JSERC) (Operation of Parallel Licensees)
Regulations, 2019
The Commission, through this Regulation, aims to
enable the consumer, in those areas, to avail electricity
from any of the Distribution Licensees as per the choice
of the consumer. This will also foster competition and
may improve the utilisation of the existing assets. In
cases where the distribution system of one Distribution
Licensee already exists, the other Distribution Licensee
may provide electricity to consumers by using the wires
of the other licensee on payment of wheeling charges
to the Licensee, whose wire is being used.
2.
Tata Power Business Portfolio, Opportunities and Outlook
Your Company’s generation business operates under various business models across divisions in the domestic as well as
international markets, with the PPA/Fixed Tariff model contributing to the largest share of the generation segment. The
following is a summary of the different business models under which various generation assets of your Company operate.
Model
Returns
Project
Capacity (MW) % Overall Capacity
Regulated Tariff
Regulated return on equity Mumbai operations (Trombay and Hydro),
2,775
Maithon, Jojobera (Unit 2 and 3)
TPDDL-Rithala
PPA/Fixed Tariff
(Renewables)
Feed In Tariff + Bid Driven
Wind and Solar Projects (Domestic)
PPA/Fixed Tariff (Bid/
Others)
Bilateral Agreement + Bid
Driven
Jojobera (Unit 1 and 4), CGPL, Itezhi-Tezhi,
Hydro projects, Georgia hydro,
Kalinganagar-IEL-40 MW
Captive
Merchant
Under platform
management
Total
Bilateral Captive Agreement
IEL (Unit 5, PH6, KPO), CKP (Indonesia)
Market Driven
PPA Based
Haldia, Dagachhu
Prayagraj
2,637
4,676
429
246
1,980
12,742
21.8
20.7
36.7
3.4
1.9
15.5
100
The Indian market continues to remain the primary focus
of business for your Company with domestic markets
accounting for more than 90% of generation capacity. As
highlighted earlier, your Company has put in place well-
defined plans to grow in the areas of renewable generation,
distribution as well as new and service-led businesses.
Renewables Generation
Your Company is a leading player in the renewable
generation space, having a presence across the value
chain. Significant growth opportunities in renewables
(both organic and inorganic) are expected to arise in the
future and your Company plans to increase its footprint
by capitalising on those opportunities through value-
accretive projects. Significant emphasis has been laid on
rooftop solar, and your Company has already rolled it out
in 94 cities till March 2020. In the microgrids space, your
Company intends to install 10,000 microgrids to service
and meet the electricity requirements of customers in
remote areas with unstable grid networks.
Thermal and Hydro Generation
Your Company plans to limit its exposure to thermal
projects and does not intend to expand its coal based
power plant portfolio beyond the current size. Your
Company does not have any greenfield or brownfield
expansion plans in the near term, but would continue to
maintain the existing thermal and hydro operations in a
sustainable manner. However, your Company has explored
the inorganic route to acquire a few stressed thermal
assets through Resurgent and has acquired PPGCL, a
super critical Thermal plant (1,980 MW) in Uttar Pradesh.
Your Company has been granted a long-term coal mining
license for the Krutogorovskya coal deposit located in
Sobolevo District, Kamchatka of the Russian Federation
under competitive bidding, to explore cheaper and
sustainable coal supply
its subsidiary, Coastal
for
Gujarat Power Limited (CGPL). The project feasibility
is being studied.
Your Company is also evaluating growth opportunities
in services for thermal and hydro plants by leveraging its
technical and operation expertise.
Transmission
Your Company is significantly focusing on augmenting
transmission
in Mumbai operations.
In addition, your Company will also look for suitable
opportunities for acquiring few assets through M&A.
infrastructure
184
The Tata Power Company Limited Integrated Annual Report 2019-20
Distribution
With growing focus on improving the state of the
distribution business, more states have been adopting
the Distribution Franchisee (DF) model, while a few have
invited bids through the PPP route. Your Company has
already acquired CESU in Odisha and will evaluate similar
opportunities in future to be a leading player in this
space. Your Company will also explore services business
opportunities in both, domestic and international markets.
Company in capitalising on favourable market conditions,
while ensuring stable returns.
Highlights of operational performance of key entities
are listed below:
Renewables
Tata Power Renewable Energy Limited - TPREL
(1,187 MW)
Type of entity: Wholly owned subsidiary
i.e. businesses with
looking to scale-up
New and Service-Led Businesses
its service
Your Company
is
little or no capital
businesses,
investment (EV Charging, Home Automation, Distribution
services, Thermal O&M services and solar EPC) and is also
evaluating opportunities in emerging business areas such
as microgrids, rooftop solar, energy efficiency solutions
and EV charging stations.
It has collaborated with Tata Motors Limited to roll-out EV
charging infrastructure and aims to expand its presence
further in high EV adoption cities in India. Your Company
is also working on developing a robust software platform
for customers of EV charging and has released a mobile
based application towards the same effect. With the
increase in EV adoption, your Company plans to cover
the segments of home, workplace and captive charging
through different models and approaches.
Your Company has collaborated with the Rockefeller
Foundation to roll out 10,000 microgrids to provide
innovative solutions for the under-served communities
and expand the global microgrid footprint.
Your Company has also identified eight business wide
Strategic Business Objectives (SBO). You may refer to
page number 23 of the Integrated Report for a detailed
explanation of these SBOs, along with goals and action
plans to achieve these objectives.
3. Business Performance
are
Consolidated operations of
categorised into four segments: Generation, Transmission
& Distribution, Renewables 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.
your Company
Your Company’s business performance in FY20 was
mainly driven by lower losses in CGPL, capacity addition
in renewables and strong operational performance across
all businesses. The large section of the portfolio being
under the regulated framework demonstrates the strong
and reliable fundamentals of your Company’s finances.
Also, the balance between regulated return businesses
and market-linked businesses in it’s portfolio aids your
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY20
2,162
975
(51)
FY19
1,450
774
89
TPREL’s higher sales were due to addition of solar capacity
during the year. During FY20, the company has added 300
MW Solar PV assets in operating portfolio and 9 MW of
Rooftop Solar assets. The company has commissioned two
new solar projects during the year – 150 MW at Karnataka
(3 blocks of 50 MW each in Pavagada Solar Park), 150 MW
at Pokharan in Rajasthan.
The PAT for the year has reduced due to lower dividend
income from Walwhan Renewable Energy Limited (WREL),
increased O&M costs due to end of free O&M period
at its wind sites located in Andhra Pradesh, Gujarat,
Madhya Pradesh, curtailment of power offtake in Andhra
Pradesh, one time impact of adoption of new tax regime
and increased finance charges due to higher borrowings
drawn to fund projects. During the year, the company
evaluated the option given under the New Tax Ordinance
and found that it would be beneficial to opt for the new
tax regime. Based on this decision, the company reversed
the MAT credit amount of ` 48 crore during the year
resulting in lower profit for the year.
The company is executing 650 MW solar PV projects under
long term PPAs in Gujarat, Uttar Pradesh and Rajasthan. 400
MW of this capacity will be based out of solar parks located in
Gujarat with long term power tie up with Gujarat Urja Vikas
Nigam Limited (GUVNL). The Company has also signed PPA
with Tata Power-Distribution for supply of 150 MW long term
Solar power for which it is proposing to develop the project in
Rajasthan. It has also signed a 100 MW PPA with Uttar Pradesh
Power Corporation Limited and Noida Power Corporation
Limited, awarded through a bid process conducted by the
Uttar Pradesh New and Renewable Energy Development
Agency. The company has planned commissioning of 650
MW capacity by Q4 of FY21. The company is also developing
a 50 MW solar project in Maharashtra through its subsidiary,
Poolavadi Windfarms Limited which will sell power to
Netmagic IT Services Limited for their captive consumption.
The commissioned capacity at the end of FY20 was 1,187
MW which included Vagarai Wind Farm Limited (21 MW)
185
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
and Indorama Renewable Jath Limited (30 MW). The
carve out of 379 MW of RE assets from Tata Power to
TPREL through National Company Law Tribunal approved
process is under review.
Walwhan Renewable Energy Limited – WREL
(Consolidated Financial statement) (1,010 MW)
Type of entity: Wholly owned subsidiary (through TPREL)
WREL is a wholly 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.
The generation achieved by WREL in FY20 was 1,639 MUs
as against 1,745 MUs in FY19. The lower generation was
mainly on account of change in weather pattern this year
with extended monsoon, higher cloud cover and lower
wind speed till February 2020. The availability of generation
assets of WREL has improved from 98.6% in FY19 to 98.8%
in FY20 through various initiatives taken during the year.
Particulars
Generation Sales (MUs)
Net Sales (` crore)
PAT (` crore)
FY20
1,639
1,203
183
FY19
1,745
1,272
300
The PAT decreased due to adoption of the new tax regime,
the impact of which was ` 110 crore and lower generation.
During the year, the company evaluated the option given
under the New Tax Ordinance and found that it would be
beneficial to opt for the new tax regime as this will result
in significant reduction in the tax outgo for the company.
Based on this decision, the company reversed the MAT
credit amount to ` 110 crore during the year resulting in
lower profit for the year.
Tata Power Solar Systems Limited – TPSSL
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY20
2,141
123
FY19
3,175
90
The sales are lower during the year mainly due to delay
in the solar EPC projects on account of COVID-19.
However, the sales from Rooftop and Products segments
increased by 32% and 88% respectively. During the
year, the company implemented various cost reduction
initiatives, which resulted in increase in PAT by 36% over
the previous year.
During the financial year, 1,280 MW of utility-scale solar
projects have been executed or are currently under
execution. The company commissioned three blocks of
the Karnataka Renewable Energy Development Limited
186
Pavagada project, i.e. 150 MW of the total 250 MW project
capacity about five months before the scheduled date,
150 MW for Maharashtra State Electricity Distribution
Company Limited at Chhayan, 200 MW for Softbank in
Pavagada and 90 MW for Greenko in Shivpuri. TPSSL
has won 1,580 MW orders during this financial year
and currently has the highest ever order book value of
around ` 7,000 crore.
TPSSL further fortified its manufacturing capabilities this
year and produced over 180 MW cells and 240 MW of
modules. It has now attained module wattages of 335
Wp using its own cells. In the solar products domain,
the company was declared as a market leader, with over
12,500 solar agricultural pumps installed in seven states in
FY20, a growth of more than 180% from the previous year.
During the financial year, the company continued to be a
pioneer in the rooftop solar domain with projects of 66
MWp capacity executed and of 48 MWp capacity under
execution. The Rooftop Focus City Launch campaign
targeting 100 cities across India kicked off in September
2018 in New Delhi and covered 94 cities by the end of FY20.
The company recorded solar module export revenue of
over ` 105 crore to clients in the United States.
Renewables Division on The Balance-Sheet of the
Parent Company (379 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
FY20
643
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.
Tata Power Hydros (447 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)*
FY20
1,493
FY19
1,548
*Includes sales to company’s distribution division
During the year, generation sales was marginally lower
than that of the previous year on account of lower
demand. Lake levels have been maintained to meet
the requirement of peak power till next monsoon (i.e.
till June-July 2020). Availability for the year at 96% was
lower compared to the previous year on account of
planned major overhauls of 24 MW units at Khopoli and
Bhivpuri and 150 MW BPSU at Bhira. These overhauls were
completed as per the scheduled timelines.
The Tata Power Company Limited Integrated Annual Report 2019-20
CGPL, Coal and Related Infrastructure Companies
Coastal Gujarat Power Limited - CGPL (4,150 MW)
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY20
24,463
7,017
FY19
24,752
7,064
(891)
(1,654)
Loss in FY20 was lower as compared to FY19 mainly
due to lower under-recovery on account of lower coal
benchmark prices, optimized blending, effective coal
procurement strategy and lower finance cost mainly due to
re-financing of ECB loan partly offset by impact of Ind-AS 116.
Under-recovery of fuel cost is listed below:
Particulars
Total Revenue* (` crore)
EBITDA (` crore)
Fuel under-recovery**
(in ` crore)
(in ` per kWh)
FY20
7,037
810
FY19
7,137
(194)
(1,066)***
(0.44)***
(2,080)
(0.84)
* Total revenue consists of Revenue
other income
from Operations and
** Fuel under-recovery consists of total coal cost under recovery
(Fuel revenue net of coal costs).
*** Fuel under-recovery includes ` 230 crore Ind-AS 116 non-cash
positive impact for FY20.
It is pertinent to note that the increase in EBITDA in CGPL
is due to lower fuel under-recovery on account of lower
benchmark coal price and optimised blending and lower
forex loss pertaining to coal and freight exposures in FY20.
CGPL continues to engage with the procuring states to
find a solution for long-term viability of the plant.
CGPL is also making efforts to improve profitability
through initiatives like sourcing of low-cost coal from
other geographies and
low
calorific value coal.
increasing blending of
Mundra (CGPL) Tariff Relief matter
A ‘High Power Committee’ (HPC) was constituted by the
Government of Gujarat (GoG) for suggesting relief to
stressed thermal plants arising out of the issue of change
in coal law in Indonesia. This HPC re-looked, reviewed,
analysed and re-evaluated the overall situation afresh
and made reasoned recommendations on 3rd October
2018 along with a draft Supplemental PPA to be executed
between the parties to PPA.
The Supreme Court passed an order allowing the parties
to approach CERC for amendments in the PPAs in
response to application filed by GoG and State Bank of
India. Subsequently, based on the recommendation and
acceptance of GoG for HPC recommendation, GUVNL
has finalised Supplemental PPA and circulated to other
Procurers (four states) seeking their approval. CGPL is
pursuing the matter with other Procuring States for a
consensus on Supplemental PPA circulated by GUVNL.
As per the legal opinion received, even if UMPP Mundra
supplies power as per the tariff discovered through the
competitive bidding process to five states under single
PPA, in order to implement HPC recommendations, CGPL
can enter into separate Supplemental PPAs with each
Procurer. CGPL is pursuing with Gujarat and Maharashtra to
sign separate supplemental PPAs and once Supplemental
PPAs are signed, parties will approach CERC for approval
of the same. Once HPC recommendation is implemented
in these two states, the matter will be taken up with other
Procuring States.
Russian Coal Mine Development Project
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. The
Far East Natural Resources LLC (FENR) is a registered
local subsidiary entity of Tata Power International Pte
Limited (TPIPL) and Bhira Investments Pte Limited (Bhira)
incorporated in Russia to develop this coal mine. The
Company also signed the TOR-I agreement with Far East
Development Corporation (FEDC) Russia to become a
resident of Advanced Special Economic Zone (ASEZ) and
avail benefits/grants extended to the resident companies.
Firm estimates of reserves and resource are being assessed
through detailed drilling and exploration activities, which
are presently under progress.
Regulatory matters
Ministry of Environment, Forest and Climate Change
(MOEF&CC) vide its notification dated 7th December 2015
mandated all thermal power plants to comply with new
environmental norms. Implementation of such revised
environmental norms requires huge Capex and Opex.
Therefore, CGPL filed a petition seeking in-principle Capex
and Opex approval to secure finance from the lending
institution. CERC passed an order in September 2018
holding that new/revised environmental norms qualify
as change in law under the provision of PPA. Further,
the company approached the CERC for determination of
increase in cost or/and revenue expenditure on account of
implementation of revised norms in accordance with the
guidelines to be issued by CEA and the mode of recovery
of the same through the monthly tariff. CGPL had a series
of meetings and discussion with CEA and finalised the
technology, based on which it filed a petition in June 2019
seeking approval of capital expenditure and annual
operating expenditure. The matter has been heard on
merit and reserved for order.
187
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Coal & Infrastructure Companies
The 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 trading and
infrastructure. The aggregate
consideration for the stake is $ 401 million, subject to
certain closing adjustments and restructuring actions.
The Company received $ 214.9 million till March 2020
and expects to receive periodic payments in future. The
Company is pursuing steps to conclude this transaction.
The mining license for KPC is due for renewal in December
2021. KPC team has initiated the process of application
for renewal of license and has submitted preliminary
documents to the mining department.
Indonesian
Government is in process of making amendment in
Mining Law. The parliamentary committee has conducted
hearings and deliberations with the Ministry of Energy
and Mines on the revision of this law. The revised Mining
Law is expected to be passed in the first quarter of FY21
by Indonesia’s Parliament. The proposed changes, a few
being extension in license area, auto renewal of mining
contracts, etc., in the revised bill will benefit the mining
companies operating in the region. Once implemented,
this will also help KPC in its process of license renewal.
PT Kaltim Prima Coal, Indonesia
Particulars
Coal Production (Million Tons)
Net sales* (` crore)
PAT* (` crore)
FY20
61.2
24,628
1,206
FY19
58.5
25,997
2,462
*Figures are on 100% basis. The Company’s share is 30%.
The coal price realisation for the year was at $ 55.22/tonne
as compared to $ 63.56/tonne in the previous year. KPC’s
profitability was adversely affected due to a drop in the
international coal price index.
PT Baramulti Suksessarana Tbk, and PT Antang
Gunung Meratus Indonesia
Particulars
Coal Production (Million Tons)
Net sales* (` crore)
PAT* (` crore)
FY20
11.7
2,936
277
FY19
11.7
3,169
354
*Figures are on 100% basis. The Company’s share is 26%.
188
is
lower mainly due to
PAT
lower average price
realisation at $ 35.11/tonne as compared to $ 38.98/tonne
in the previous year.
The status of infrastructure company at Indonesia, PT Nusa
Tambang Pratama was as under:
PT Nusa Tambang Pratama, Indonesia
Particulars
Net sales* (` crore)
PAT* (` crore)
FY20
1,065
639
FY19
1,019
632
*Figures are on 100% basis. The Company’s share is 30%.
Trust Energy Resources Pte. Limited – Trust Energy
Type of entity: Wholly owned subsidiary
Particulars
Net sales (` crore)
PAT (` crore)
FY20
1,086
185
FY19
1,298
168
PAT and sales for FY20 includes Energy Eastern Pte Limited
as well. 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 FY20. The company
continued to undertake several measures to improve the
operating efficiencies and reduced 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.
Thermal Generation
Maithon Power Limited – MPL (1,050 MW)
Type of entity: Subsidiary (Tata Power: 74%, Damodar
Valley Corporation: 26%)
Particulars
Generation Sales (MUs)
Net sales* (` crore)
PAT* (` crore)
FY20
6,340
2,741
338
FY19
6,858
2,776
273
*Figures are on 100% basis. The Company’s share is 74%.
PAT has improved mainly due to the impact of favourable
CERC orders and additional revenue generated due to
introduced
in the RRAS/SCED Scheme
participation
during the year. 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.
In principle approval has been obtained from Central
Electricity Regulatory Commission (CERC) for setting up of
Flue Gas Desulphurisation system.
The Tata Power Company Limited Integrated Annual Report 2019-20
Industrial Energy Limited – IEL (415 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)
FY20
2,829
301
149
FY19
2,992
300
111
*Figures are on 100% basis. The Company’s share is 74%.
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.
The company has started executing 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.
During the year, the company evaluated the option given
under the New Tax Ordinance and found that it would be
beneficial to opt for the new tax regime from FY32 since
MAT credit will be fully utilised by FY31. This resulted
in reversal of the deferred tax liability amounting to
` 48 crore, which improved the profitability for the year.
Jamshedpur Unit 5 achieved highest monthly generation
since inception in the month of December 2019, surpassing
its previous best in May 2018.
MoU have been signed with Tata Steel for multiple captive
projects, including Captive Power Plant # 2, various CDQs,
TRT projects, DG Projects and Thermal Projects.
Trombay (930 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)*
FY20
5,576
FY19
6,092
*Includes sales to Company’s distribution division.
The plant achieved an availability of 94%
in FY20
(compared to last year’s availability of 95%). Unit 5 and
Unit 7 overhauling were successfully completed within the
stipulated time frame. The plant had undertaken several
operational improvement measures including reduction
in auxiliary consumption, optimisation of operational
expenses and reduction of store inventory etc.
Jojobera (428 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
FY20
2,681
FY19
2,604
Jojobera plant achieved availability of 97% in FY20
improving from the previous year level of 92%. The
plant had also achieved maximum continuous running
days of Unit 3 (327 days) and Unit 4 (352 days) in FY20
since inception.
The Jojobera Division secured 4.6 lakh MT coal from Shakti
B (ii) coal linkage auction in May 2019.
Haldia (120 MW)
Type of entity: Division
Particulars
Generation Sales (MUs)
FY20
693
FY19
704
Generation sales in FY20 were marginally lower than
the previous year. However, lower flue gas availability
from Tata Steel continues to remain a challenge for
enhancing generation sales. The plant availability in
FY20 is 97%, which is significantly higher than the FY19
achievement of 90%.
Transmission
Mumbai Transmission
The transmission assets, which are a part of the Mumbai
license area, had a grid availability of 99.75% in FY20 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)
FY20
99.75
9,838
FY19
99.50
9,803
Powerlinks Transmission Limited – PTL
Type of entity: Subsidiary (Tata Power: 51%, Power
Grid Corporation of
(Joint
Venture under Ind AS)
India Limited: 49%)
Particulars
Net sales* (` crore)
PAT* (` crore)
FY20
92
121
FY19
146
113
*Figures are on 100% basis. The Company’s share is 51%.
The availability of the lines was maintained at 99.97% for
Eastern Region in FY20 (previous year availability stood
at 99.97%) and 99.95% for Northern Region (previous
year availability was 99.89%), as against the minimum
stipulated availability of 98.50%. PAT for FY20 is higher
mainly because of one-time impact due to change in MAT
rate from 18.5% to 15% as per the New Tax Ordinance.
189
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Distribution
Mumbai Distribution
The highlights of the Mumbai Distribution business
are as follows:
Particulars
Sales (MUs)
Consumer Base (Nos.)
FY20
4,573
FY19
4,521
7,20,310
7,01,438
Mumbai Distribution has added about 20,000 customers
in FY20. The overall MUs sales has remained constant over
the last year. The Multi-Year Tariff (MYT) order for Tata
Power Mumbai Distribution was rolled out for FY21 to
FY25 by MERC in FY20.
Some key highlights of the Mumbai Distribution business
including certain
improve customer
experience are:
initiatives
to
y Mumbai Distribution
is now
(ISO
IMS certified
9001:2015 for Quality Management system,
ISO
14001:2015 for Environmental Management system,
ISO 45001:2018 for Occupational Health and Safety
Management system).
y Won Platinum Award at ISGF Innovation Awards 2020
for ‘Most Reliable Supply of Electricity by Utility in India’.
y Introduced a real-time tracking solution, where
customers can track the real-time location of the
complaint management crew.
y Smart Meter Reading and Dispatch app (SMRD) was
rolled out for meter reading activities, online spot
billing and collection.
y Became the first power utility to launch ‘Kaizala’,
collaboration with Microsoft, a one-stop
billing
information and complaint
in
window
and meter
management for consumers.
information/alert-sharing,
related
for
y Added another all-women Customer Relations Centre
at Ghatkopar, Mumbai, taking the total number to 4.
y Know Your Electricity Consumption (KYEC) launched
as part of Value-Added Services, which helps
consumers monitor and analyse energy usage, made
available in intervals of 15 minutes, to help consumers
take decisions.
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)
FY20
9,051
7,888
414
FY19
8,870
7,600
336
190
The profit during the year increased due to one-time
impact of impairment of ` 106 crore for Rithala Plant in the
previous year.
In FY20, TPDDL had a registered customer base of 17.56
lakh spanning across an area of 510 sq. km. in North and
North-West parts of Delhi. The AT&C losses for the year
stood at 7.89% as against 7.93% last year.
TPDDL met a peak demand of 2,069 MW in FY20 as
compared to 1,967 MW during the last year. TPDDL
was able to reduce the System Average Interruption
Duration Index (SAIDI) to a level of 26.97 hours against the
38.43 hours in the previous financial year.
TPDDL has given paramount importance to quality in
all aspects of service delivery while at the same time
focusing on optimising costs and meeting increasingly
stringent regulatory guidelines. TPDDL has adopted TQM
framework for taking operational excellence to the next
higher level. TPDDL took several initiatives during the year:
y Furthered the implementation of Advanced Metering
Infrastructure (AMI) and rolled-out Smart Meter for
its customers. During the financial year, 1.94 lakh
Smart Meters were installed within the licensed area.
To increase transparency and customer satisfaction,
the data generated from the Smart Meters has been
integrated with the TPDDL Mobile app.
y Launched an interactive bill service through WhatsApp
with the feature of audio description of bill, 6 months
bill history details, nearby payment avenues along with
existing offers and schemes.
y Launched various energy efficiency programmes like
5-star AC Replacement Scheme, Super-Efficient BLDC
Fan and LED Lighting Products, which helped reduce
the Peak Load by 65 MW, with 99 MUs energy saving,
leading to 32,531 MT CO2 reduction since FY15.
y TPDDL is exploring innovative technology adoption
to improve its overall performance and enhance
customer experience.
Under the Horizon 2020 programme, funded by the
European Union, TPDDL is carrying out a pilot exercise
of deploying an Energy Islanding System at one of its
distribution sub-stations with the aim of creating a
model for individual community-based storage systems.
The project has deployed a holistic approach including
community engagement and technology deployment to
create a successful model.
The Tata Power Company Limited Integrated Annual Report 2019-20
TP Ajmer Distribution Limited – TPADL
Type of entity: Wholly owned subsidiary
Particulars
Distribution Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY20
483
401
1.02
FY19
465
376
0.40
TPADL has been operating as a franchisee for the
supply and distribution of power in Ajmer city over the
past three years.
The total area under the franchisee is around 190 sq. km.
The total consumer base in FY20 is 1.51 lakh and total
peak demand is 128.64 MW, higher by 14.5% compared to
that of last year.
In FY20, PAT
increased due to strong operational
performance and AT&C loss reduction from 11.2% in FY19
to 9.96% in FY20.
For enhancing consumer centricity and reliability, various
initiatives were implemented resulting in improvement
in business performance, which were manifested by
60% reduction in commercial complaints compared to
previous year, zero meter faulty pendency within 30 days,
reduction in provisional billing from 3.8% in FY19 to 1.8%
in FY20, increase in digital payment from 19.0 % in FY19 to
33.4 % in FY20. The average restoration time of tripping
also improved from 6.40 minutes in FY19 to 4.22 minutes
in FY20 (34.1% reduction).
Other Businesses
Services
In FY20, the Services division provided O&M management
services for 3,180 MW capacity, complete O&M services
for 99 MW, Project Management Services for 120 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
training for Asset Management and Safety Management
systems etc. to various clients.
Tata Power Trading Company Limited – TPTCL
Type of entity: Wholly owned subsidiary
Particulars
Generation Sales (MUs)
Net sales (` crore)
PAT (` crore)
FY20
10,155
248
41
FY19
10,442
262
37
TPTCL’s PAT improved over that of last year owing to higher
realisation for sale of power from Dagachhu Hydro Power
Corporation Limited (DHPC) in Bhutan, improvement in
working capital cycle, efficient receivables management
and lower tax expenses on account of shifting to the new
tax regime in the current year.
New Businesses – EV Charging
In line with its larger aim of being a change agent towards
green and sustainable development, your Company has
made a significant impact in developing EV ecosystem
and encouraging EV adoption in the country. Your
Company is committed to play a key role along with other
stakeholders in achieving the national goal of transition
to electric mobility. In FY20, Tata Power partnered with
Tata Motors and Jaguar Land Rover for developing EV
Charging Infrastructure for their customers and dealers.
In Q4 FY20, your Company rolled out Beta Version of its
Software Platform and Mobile App that plays a crucial
role in the customer journey of EV charging, by helping
customers in locating EV charging stations, charging EVs
and making bill payments online. Tata Power EV charging
points are now present in 20 cities including Delhi,
Mumbai, Bengaluru, Pune, Hyderabad, Kolkata, Chennai,
Ahmedabad and Lucknow, under various business models
and market segments. Your Company aims to increase its
presence both in terms of a greater number of charging
stations and larger geographical presence across the
country. As on 31st March 2020, your Company has set up
170 EV charging points in 20 cities.
International Businesses
Cennergi Pty Limited – Cennergi (230 MW)
Type of entity: Joint Venture (Tata Power (through Khopoli
Investments Limited) 50%, Exxaro Resources Limited 50%)
Cennergi is an independent power producer jointly
owned by Tata Power (50%) and Exxaro Resources Limited
(Exxaro) (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. The Company sold its entire stake
in Cennergi to Exxaro on 31st March 2020 for ₹ 842 crore
including hedging gain.
Dagachhu Hydro Power Corporation Limited – DHPC
(126 MW)
Type of entity: Associate (Tata Power 26%, Druk Green
Power Corporation Limited & Affiliates: 74%)
Particulars
Generation Sales (MUs)
Net sales* (` crore)
PAT* (` crore)
FY20
FY19
513
143
(43)
495
124
(25)
*Figures are on 100% basis. The Company’s share is 26%.
While the generation sales increased from 495 MUs in FY19
to 513 MUs in FY20, foreign exchange variations resulted
in increase of loss to ` (43) crore.
191
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Adjaristsqali Georgia LLC - AGL
Type of entity: Joint Venture (Tata Power (through TPIPL):
50%, Clean Energy Invest: 50%)
is developing a 187 MW hydropower project
AGL
(Shuakhevi and Skhalta projects) on the Adjaristsqali River
and its tributaries in Georgia. This is one of the largest
infrastructure investments in Georgia.
The plant operations were suspended in October 2017 on
account of collapses experienced in certain sections of the
tunnels. The company received insurance claims proceeds
from its insurers, which were used towards restoration
and repair of the tunnels. The Company also negotiated a
restructuring package with the project lenders to sustain
the viability of the project. AGL had engaged experts from
Austria and Brazil in tandem with the Owner’s Engineer
team (Mott MacDonald UK) to identify the root cause of
the collapses and understand the inconsistent geological
behaviour in these tunnels to undertake the remedial
work design required in the affected sections.
the company held discussions with
Further,
the
Government of Georgia for negotiating a Power Purchase
Agreement (PPA) for the sale of power generated from the
Shuakhevi Project. The same has been concluded and the
amended BOO Agreement was executed in December
2019 for a 15-year PPA.
The repair work has been completed and the tunnels have
been put back in service. Further, both 89 MW Units of
Shuakhevi HPP have been tested and re-commissioned
and have commenced commercial operations
in
March 2020. The 9 MW Skhalta HPP, which is also a
component of the overall project is expected to be
commissioned in Q1 FY21.
Digital Initiatives
create
Your Company has implemented digital technologies
and solutions across various business segments in order
to enhance customer experience, improve operational
efficiencies ,
differentiation
competitive
support business growth. Tata Power has
and
implemented
(IMS)
Integrated Management System
for Digital and IT and secured ISO 27001:2013 and ISO
9001:2015 Certification, that puts Tata Power Digital & IT
service aligned with the accepted global benchmark.
Some of the key initiatives across business/functions
during the year are summarised as follows:
Initiatives to enhance customer experience
− Redesigning of customer mobile application, keeping
focus on simplicity and user friendliness.
− Simplification of online New Connection Application
form resulting in significant reduction of average time
taken to fill up the form from 15 min to 2 min.
192
− Implementation of Voice of Customer module for
automatic capture of customer’s feedback/suggestions
and assignment
to appropriate
through CRM
stakeholders for prompt resolution.
− Launch of ‘Kaizala’ App for Mumbai customers for
variety of customer communications, including matters
related to meter reading, billing, payment, discounts,
complaints, etc.
− AI assisted system to analyse the feedback received
from the customers through email, automatically
classify, create tickets and forward it to appropriate
group of people for further action.
Initiatives to enhance employee productivity,
experience and learning
− Implementation of O365 product suite for enhancing
collaboration and productivity, and 24x7 availability
and secured access to organisational data.
− Setting up of the Data Analytics and Insights Academy,
to build analytical capability across business clusters
and functions, helping in enhancing business delivery
outcomes by leveraging statistical, ML&AI methods.
Initiative for business growth
− EV – Mobile App for EV charging, developed in
collaboration with other Tata group companies
contributing to the development of the EV ecosystem.
Initiatives to enhance Operational Efficiency (Asset
performance and digitisation of process)
− SAP footprint further extended to PPGCL to enhance
business processes in terms of productivity, better
inventory management, effective human resource
management, etc.
− Implementation of Project Management tool, Wrench
for Roof Top Solar, to help TPSSL manage the real time
status of various Roof Top Solar Projects.
− Implementing Sales Force for Lead Management.
− CCRA Infrastructure and platform integration – to help
in near real-time monitoring of distributed generation
assets (Solar and Wind) from a central
location
with the aid of automated system alerts, predictive
analysis and reports.
− Sankalp (RCM) – Implementation of APM tool in
various generation plants
including Trombay,
Jojobera, MPL and CGPL to optimise the Preventive
Maintenance (PM) cycle, improvement of reliability and
utilisation of assets.
− EKPI dashboards have been implemented for all major
business verticals for monitoring and review of cluster
and department level critical KPIs. As of now, around
140+ KPIs are deployed in various dashboards of T&D,
The Tata Power Company Limited Integrated Annual Report 2019-20
Generation, Renewables, Finance and HR clusters.
These KPIs are available to the Senior Management/
Cluster Heads for tracking and review of business
performance at any point of time.
− Automation of the Related Party Transaction process,
which
led to significant reduction of cycle time
required for month-end closing, freeing up resources
from the repetitive job and ensured robust control and
compliance of applicable norms.
Initiatives for communities
− Implementation of Roshni portal to help in tracking
the beneficiaries of community initiatives, thereby
improving
transparency of
follow-up and
such initiatives.
the
4. Financial Performance – Standalone
Your Company recorded a Profit After Tax of ` 148.12 crore
during the financial year ended 31st March 2020 (the Profit
After Tax was ` 1,768.70 crore in FY19). Both the basic and
the diluted earnings per share were at ` (0.08) for FY20
and interest income from ICD given to subsidiaries, offset
by the lower mutual fund and dividend income.
Cost of Power Purchased and Cost of Fuel
(` in crore)
Particulars
FY20
FY19 Change
Cost of Power Purchased
458
457
1
Cost of Fuel
2,766
3,168
(402)
%
Change
Nil
(13)
The cost of fuel was lower mainly due to lower generation
and lower fuel price.
Transmission Charges
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Transmission Charges
214
248
(34)
(14)
Transmission charges are lower in the Mumbai regulated
business on account of MYT order issued by MERC.
The analysis of major items of the Standalone Financial
Statements is shown below.
Employee Benefit Expenses
(` in crore)
Revenue
Particulars
Revenue from Operations
Regulatory Deferral Balances
including deferred tax
recoverable/(payable)
Total
Particulars
FY20
FY19 Change
%
Change
(` in crore)
Employee benefit expenses
611
638
(27)
(4)
FY20
7,726
FY19 Change
%
Change
8,255
(651)
(146)
(529)
(505)
(6)
(343)
Employee Benefit Expenses are
lower mainly due
to reversal of performance pay provision and lower
capitalisation of employee cost to the projects offset by
higher provisions for retirals as per actuarial valuation.
7,075
8,109 (1,034)
(13)
Finance Costs
The decrease in revenue was mainly due to lower
generation on account of lower demand from procurers,
lower transmission charges as per the MERC tariff order
and the impact of the truing up order passed by MERC.
Other Income
Particulars
Interest Income
Dividend Income
Gain/(Loss) on Investments
Other Non-operating Income
Total
(` in crore)
FY20
FY19 Change
%
Change
120
369
22
72
583
85
384
7
40
516
35
(15)
15
32
67
41
(4)
214
80
13
Increase in Other Income was mainly due to higher
interest receipt on delayed payment from BEST, interest
income on take or pay order in Mumbai Licensed area,
guarantee commission income recognised pursuant to
Advance Pricing Agreement with Income Tax Department
Particulars
Finance Costs
(` in crore)
FY20
FY19 Change
%
Change
1,510
1,500
10
1
Finance Cost was higher mainly due to
increased
borrowings and impact of IND-AS 116 off-set by higher
interest paid on entry tax order in Mumbai Licensed Area
in the previous year.
Depreciation and Amortisation
Particulars
Depreciation and
Amortisation
(` in crore)
FY20
FY19 Change
%
Change
686
633
53
8
Depreciation has increased mainly on account of Ind AS
116 and capitalisation during the year.
193
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Operations and Other Expenses
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Repairs and maintenance
Others
Total
312
444
756
286
516
802
26
(72)
(46)
9
(14)
6
The repairs and maintenance expenses were higher
mainly due to scheduled outages planned for the
business. The Other Expenses are lower due to reduction
in the consultancy fees and rates, legal expenses and cost
of service procured.
Exceptional Items – Continued Operation
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Reversal of Impairment of
Non-current Investments
and related obligation
Standby Litigation
Remeasurement of Deferred
Tax Recoverable on account
of New Tax Regime (net)
Provision for contingencies
Gain on sale of Investment in
Associate
Total
235
Nil
235
100
(276)
(265)
Nil
Nil
(276)
(265)
(100)
(100)
Nil
Nil
(45)
45
1,213
(1,213)
100
(100)
(306) 1,168 (1,474)
(126)
investments
Reversal of Impairment of Non-Current Investments
and related obligation
Your Company holds
in Adjaristsqali
Netherlands B.V. (ABV) (a joint venture of the Company
operating 187 MW hydro power plant in Georgia) through
intermediate holding company TPIPL. During the year,
your Company performed the impairment assessment
and recognised a reversal of ` 235 crore in impairment
charge mainly on account of change in assumptions
due to signing of PPA and renegotiating
interest
rates with lenders.
Standby Litigation
In respect to the Standby Charges dispute with Adani
Electricity Mumbai Limited (Adani Electricity) erstwhile
Reliance Infrastructure Limited (R-Infra) for the period
from 1st April 1999 to 31st March 2004, the Appellate
Tribunal of Electricity (ATE) set aside the MERC Order
dated 31st May 2004 and directed your Company to
refund ` 354 crore (including interest of ` 15 crore) to
Adani Electricity as on 31st March 2004, and pay interest at
10% per annum thereafter. During the year, the Supreme
194
Court (SC) has upheld Appellate Tribunal for Electricity’s
order directing the Company to pay ` 354 crore along with
interest. Consequently, the Company has recognised an
expense of ` 276 crore net of amount recoverable from
customers including adjustment with consumer reserves.
Remeasurement of Deferred Tax Recoverable as per
New Tax Regime
Pursuant to the Taxation Laws (Amendment) Act,
2019, which is effective from 1st April 2019, domestic
companies have an option to pay income tax at 22%
plus applicable surcharge and cess (‘new tax regime’)
subject to certain conditions. Based on your Company’s
assessment of the expected year of transition to the
new tax regime at each entity level, where the new tax
regime is applicable, your Company has remeasured
the deferred tax liabilities and also reassessed the
recoverability of Minimum Alternate Tax (‘MAT’) credit.
Based on the above, your Company has also remeasured
its regulatory asset balance against deferred tax
liabilities and has recognised expense of ` 265 crore
(` 98 crore for distribution business and ` 167 crore for
generation and transmission business).
Gain on sale of Investment in Joint Venture
During the year, your Company has sold its investment in
Cennergi to Exxaro on 31st March 2020 for a consideration
of ` 737 crore and recognised gain on sale of investment
amounting to ` 533 crore. Further, your Company has
hedged its receivable against the consideration to be
received, fair value gain on the hedge instrument of
` 105 crore has been recognised as Other Income.
Exceptional Items- Discontinued Operation
(Strategic Engineering Division)
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Impairment Loss on
Remeasurement to Fair Value
(361)
Nil
(361)
(100)
In the earlier year, your Company has approved sale of its
Strategic Engineering Division (SED) to Tata Advanced
Systems Limited (TASL), subject to regulatory approvals, at
an enterprise value of ` 2,230 crore (including contingent
consideration of ` 1,190 crore) subject to certain adjustments
as specified in the scheme. During the year, your Company
has reassessed the fair value of contingent consideration
and has recognised an impairment loss of ` 361 crore.
The Tata Power Company Limited Integrated Annual Report 2019-20
Tax Expenses
Particulars
Current Tax
Deferred Tax
Deferred Tax relating to
earlier Year
Remeasurement of deferred
tax on account of new tax
regime (net)
(` in crore)
FY20
FY19 Change
%
Change
19
73
(25)
111
332
10
(92)
(259)
(35)
(83)
(78)
(350)
Non-Current Investments have increased mainly due to
reclassification of Tata Project Investment from Assets held
for sale, reversal of Georgia impairment provision offset
by lower statutory investments in Government Securities.
Current Investments
(` in crore)
(275)
Nil
(275)
(100)
Particulars
FY20
FY19 Change
%
Change
Total
(208)
453
(661)
(146)
Mutual Funds (Unquoted)
In FY20, lower current tax on account of lower operating
profit, reduced MAT rate and increase in exceptional
expenses relating to standby litigation. Previous year had
exceptional reversal of DTA on sale of asset.
Pursuant to the Taxation Laws (Amendment) Act, 2019
which is effective from 1st April 2019, domestic companies
have an option to pay income tax at 22% plus applicable
surcharge and cess (‘new tax regime’) subject to certain
conditions. Based on your Company’s assessment of
the expected year of transition to the new tax regime at
each entity level, where the new tax regime is applicable,
it has remeasured the deferred tax liabilities and also
reassessed the recoverability of Minimum Alternate Tax
(‘MAT’) credit. Accordingly, your Company has recognised
deferred tax income of ` 275 crore after adjusting the MAT
credit write off.
Property, Plant and Equipment, Investment
Property & Intangible Assets
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Property, plant and
equipment
Intangible Assets
Capital Work-in-Progress
Total
7,974
7,546
428
6
62
403
84
368
(22)
35
8,439
7,998
441
(26)
10
6
The above assets
capitalisation
amortisation for FY20.
increased mainly due to higher
and
depreciation
the
offset by
Non-Current Investments
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Investment in Subsidiary, JV
and Associate
Statutory Investments
Others
Total
20,743 20,477
266
1
168
416
374
420
21,327 21,271
(206)
(4)
56
(55)
(1)
0.3
Deferred Tax Liability Fund
Investment
Total
Nil
20
20
42
Nil
42
(42)
(100)
20
(22)
100
(52)
Investments are
Current
to
reclassification from current to non-current offset by the
higher investment in mutual funds during the year.
lower mainly due
Trade Receivables
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
Nil
186
1,109
1,256
1,109
1,442
(186)
(147)
(333)
(100)
(12)
(23)
Decrease in Trade Receivables is mainly due to recovery
of dues from BEST in the Mumbai operation area and final
settlement of standby order.
Loans
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
42
550
51
119
592
170
(9)
431
422
(18)
362
248
Increase in loans was mainly due to higher Inter-Corporate
loans given to related parties.
Finance Lease Receivable
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
553
32
585
554
38
592
(1)
(6)
(7)
NIL
(16)
(1)
Finance Lease Receivable reduced due to recovery of
lease rentals during the year.
195
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Other Financial Assets
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
223
236
459
3
96
99
220
140
360
%
Change
7,333
146
363
Other Financial Assets increased mainly due to higher
advance to the Orissa Electricity Regulatory Commission
towards Equity for the distribution license, which your
Company won during the year, lease money receivable
from Jojobera and receivable from consumers.
Other Assets
Particulars
Non-current
Current
Total
(` in crore)
FY19 Change
%
Change
977
952
33
(806)
(773)
3
(85)
(40)
FY20
1,010
146
1,156
1,929
Non-Current Assets increased mainly due to increase in
recoverable from consumers offset by decrease in security
deposit due to settlement of standby litigation and
reclassification of unamortised premium on leasehold
land to right of use assets as per Ind-AS 116.
Current Assets decreased mainly due to decrease in
recoverable from consumers.
Assets Classified as Held for Sale
Particulars
Land
Building
Investments
Loan and other receivables
(including interest accrued)
Transmission Lines
Assets of Discontinued
Operations
(` in crore)
FY20
FY19 Change
%
Change
302
9
299
23
310
14
399
19
128
Nil
1,880
2,064
(8)
(5)
(100)
4
128
(184)
(3)
(36)
(25)
21
100
(9)
Total
2,641
2,806
(165)
(6)
Assets held for sale has reduced during the year mainly due
to impairment of SED and reclassification of Tata Projects
Investment offset by inclusion of Vikhroli Project under
held for sale as your Company lost the bid for project.
196
Regulatory Deferral Account – Asset/ (Liability)
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Regulatory Deferral – Asset
Less: Regulatory Deferral –
Liability
258
Nil
999
Nil
(741)
NIL
(74)
NIL
Total
258
999
(741)
(74)
Regulatory Deferral Asset (Net) pertains to regulatory
receivables in the distribution business. The same has
reduced on account of recovery during the year.
Total Equity
Particulars
Equity Share Capital
Unsecured Perpetual
Securities
Other Equity
Total
(` in crore)
FY20
FY19 Change
271
271
1,500
1,500
Nil
Nil
13,491 13,919
15,262 15,690
(428)
(428)
%
Change
Nil
Nil
(3)
(3)
Total Equity of the your Company decreased due to
dividend pay-out, which increased with profits of the year.
Non-Current Borrowings
Particulars
Secured Loans
Unsecured Loans
Total
(` in crore)
FY20
4,910
4,915
FY19 Change
4,896
3,854
14
1,061
9,825
8,750
1,075
%
Change
0.3
28
12
Non-current borrowings increased mainly due to issue of
Non-Convertible Debentures partially offset by repayment
of term loans from the bank.
Current Borrowings
Particulars
Secured Loans
Unsecured Loans
Total
(` in crore)
FY20
FY19 Change
%
Change
60
Nil
60
100
6,152
6,732
6,212
6,732
(580)
(520)
(9)
(8)
Current Borrowings decreased mainly due to redemption
of Commercial Papers, repayment of term loans payables
on demand offset by higher Bank Overdraft.
The Tata Power Company Limited Integrated Annual Report 2019-20
Lease Liability
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
237
42
279
Nil
Nil
Nil
237
42
279
%
Change
100
100
100
During the year, your Company has recognised Lease
Liability based on the requirement of the Ind-AS 116.
Trade Payables
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
Nil
23
(23)
(100)
1,002
1,102
1,002
1,125
(100)
(123)
(9)
(11)
Trade payables decreased due to payment to the vendor
as per the payment terms.
Other Financial Liabilities
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
15
43
2,622
2,895
2,637
2,938
(28)
(273)
(301)
%
Change
(65)
(9)
(10)
Other Financial Liabilities decreased mainly due to
reduction in current maturity of non-current borrowings
& lower financial guarantee obligation.
Other Liabilities
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
161
503
664
184
849
1,033
(23)
(346)
(369)
%
Change
(13)
(41)
(36)
Other Liabilities decreased mainly due to reduction in
statutory consumers reserves offset by higher liability
towards consumers.
Provisions
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
222
62
284
196
15
211
26
47
74
%
Change
13
313
35
Provision for FY20 is higher due to compensated absences
and other defined benefit plans.
Liabilities Directly Associated With Assets
Classified as Held for Sale
(` in crore)
FY19 Change
%
Change
Particulars
Liabilities classified as held
for sale
FY20
1,036
966
Total
1,036
966
70
70
7
7
The liabilities increased mainly due to liabilities of SED
‘Discontinued Operations’, and
business classified as
accordingly, assets and
liabilities were classified as
held for sale.
5. Financial Performance – Consolidated
Particulars
Total Income*
Depreciation & Amortisation
Expenses
Finance Costs
Exceptional Item
Profit Before Taxes
Profit for the year
(` in crore)
FY20
FY19 Change
29,510 30,370
2,634
2,393
(860)
241
4,494
226
2,368
4,170
1,746
3,819
324
(1,520)
(1,451)
1,316
2,606 (1,290)
%
Change
(3)
10
7
(87)
(38)
(49)
*Includes Regulatory Income/(Expenses)
y Total Income decreased primarily on account of lower
revenue in Tata Power, TPTCL, TPDDL and MPL.
y Depreciation
increased marginally with
increased
capitalisation and assets recognised as right of use as
per Ind-AS 116.
y Finance costs were higher mainly due to interest
component on lease liability in CGPL and Trust Energy
as per Ind-AS 116.
y Exceptional items in FY20 included gain on sale of
investments in Cennergi and reversal of impairments,
offset by Remeasurement of Deferred Tax Recoverable
and regulatory deferral balance on account of
New Tax Regime.
y Exceptional items in FY19 included gain on sale of
investments in (Tata Communications Limited and
Panatone Finvest Limited) offset by provision for
contingencies related to entry tax provision and
impairment of plant, property and equipment in the
Rithala plant.
197
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Management Discussion & Analysis
Property, Plant and Equipment, Investment
Property & Intangible Assets
Trade Receivables
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Property, plant and
equipment
Intangible Assets
Capital Work-in-Progress
Total
44,663 41,102
3,561
9
1,362
1,612
1,562
2,576
(200)
(964)
47,637 45,240
2,397
(13)
(38)
5
The above assets
increased mainly on account of
higher capitalisation in Tata Power, TPREL, TPDDL, MPL,
reclassification of operating lease to right of use as per
Ind-AS 116 offset by depreciation and amortisation for
FY20 and assets reclassified as held for sale.
Goodwill
Particulars
Goodwill
(` in crore)
FY20
FY19 Change
%
Change
1,642
1,642
Nil
Nil
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
30
193
4,426
4,445
4,456
4,638
(163)
(19)
(182)
%
Change
(84)
(1)
(4)
Decrease in Trade Receivables was mainly due to decrease
in receivables in Tata Power, CGPL and MPL offset by
increase in receivables in TPSSL, TPTCL, WREL and TPREL.
Loans
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
81
33
91
87
114
178
(10)
(54)
(64)
(11)
(62)
(36)
Decrease
loans in TPIPL.
in Loans
is mainly due to repayment of
There is no change in goodwill during the year.
Finance Lease Receivable
Non-Current Investments
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Investments in Joint Ventures
& Associates
Statutory Investments
Others
Total
13,203 12,513
690
6
168
465
374
487
13,836 13,374
(206)
(22)
462
(55)
(5)
5
Increase in Non-Current Investments was mainly due
to increase in investments in Resurgent for acquisition
of PPGCL, profit from joint ventures for the year net of
dividend received and reclassification of Tata Projects
Limited to investment from assets held for sale.
Current Investments
(` in crore)
Particulars
FY20
FY19 Change
%
Change
Statutory Investments
Investments in Mutual Funds
Total
Nil
700
700
42
125
167
(42)
(100)
575
533
460
319
Increase in current Investments was mainly on account of
increase in mutual fund investments in Af-Taab Investment
Company Limited, MPL, TPDDL, TPREL and Tata Power,
offset by decrease in statutory investments in Tata Power.
198
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
589
33
622
566
38
604
23
(5)
18
4
(12)
3
Finance Lease Receivable increased due to reduction in
unearned finance income during the year.
Other Financial Assets
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
579
1,412
1,991
317
242
559
262
1,170
1,432
%
Change
83
483
256
Other Financial Assets increased mainly due to receivables
on sale of investment in Cennergi, increase in fair valuation
gain on derivative contracts and other advances.
Other Assets
Particulars
Non-current
Current
Total
(` in crore)
FY20
1,185
770
FY19 Change
1,358
1,882
(173)
(1,112)
1,955
3,240 (1,285)
%
Change
(13)
(59)
(40)
Other Assets decreased mainly due to decrease
in
recoverable from consumers in Tata Power and MPL,
The Tata Power Company Limited Integrated Annual Report 2019-20
reclassification of unamortised premium on leasehold
land to right of use assets as per Ind-AS 116, decrease in
security deposit in Tata Power on account of settlement
of standby dispute and decrease in power banking
receivables of TPDDL.
Assets Classified as Held for Sale
Particulars
FY20
FY19 Change
%
Change
(` in crore)
Trade Payables
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
%
Change
Nil
23
(23)
(100)
5,095
5,481
5,095
5,504
(386)
(409)
(7)
(7)
Trade Payables decreased mainly
TPSSL and CGPL.
in Tata Power,
Assets classified as held for
sale
6,253
5,103
1,150
23
Other Financial Liabilities
Increase in the above assets is mainly due to reclassification
of shipping assets in Trust Energy as held for sale offset by
the reclassification of Tata Projects Limited to Investment.
Total Equity
Particulars
Equity Share Capital
Unsecured Perpetual
Securities
Other Equity
Total
(` in crore)
FY20
FY19 Change
271
271
1,500
1,500
NIL
NIL
17,796 16,535
1,261
19,567 18,306
1,261
%
Change
NIL
NIL
7
7
The equity of your Company increased by 7% during the
year on account of profits for the year, net of distribution
on perpetual securities and dividend pay-out.
Non-Current Borrowings
Particulars
Secured Loans
Unsecured Loans
Total
(` in crore)
FY20
FY19 Change
21,084 20,085
11,612 11,055
999
557
32,696 31,140
1,556
%
Change
5
5
5
Non-Current Borrowings increased mainly due to increase
in loan in Tata Power, TPREL, TPDDL and CGPL partially
offset by reduction in loan in MPL and WREL.
Current Borrowings
Particulars
Secured Loans
Unsecured Loans
Total
(` in crore)
FY20
1,075
FY19 Change
896
179
10,770 12,980
(2,210)
11,845 13,876 (2,031)
%
Change
20
(17)
(15)
Current Borrowings decreased mainly due to decrease
of loan in Tata Power, Bhira, CGPL, MPL, TPTCL and TPSSL
offset by increase in TPREL, Trust Energy and WREL.
Particulars
Non-current
Current
Total
(` in crore)
FY20
FY19 Change
722
687
35
7,503
6,481
1,022
8,225
7,168
1,057
%
Change
5
16
15
Other Financial Liabilities increased due to increase
in current maturities of long-term debts and advance
received for sale of investment in Bhira and Trust Energy.
Other Liabilities
Particulars
Non-current
Current
Total
(` in crore)
FY19 Change
%
Change
FY20
2,085
1,453
1,874
1,500
3,538
3,374
211
(47)
164
11
(3)
5
Other Liabilities increased mainly due to increase in
deferred revenue liability as per Ind AS-115 and increase
in Deferred Revenue towards Service line contribution
from consumers.
Refer Notes to the Consolidated
Statements for the restatements.
Ind AS Financial
199
OverviewOur Emphasis on ValueOur Value‑creation ParadigmStatutory ReportsFinancial StatementsFuture ready for smart choices
Report On Corporate Governance
“The Tata philosophy of management has always been, and is today more than ever, that corporate enterprises must be
managed not merely in the interests of their owners, but equally in those of their employees, of the consumers of their products,
of the local community and finally the country as a whole.”
Company’s Philosophy on Corporate
Governance
The essence of Corporate Governance is about maintaining
the right balance between economic, social, individual and
community goals. At Tata Power, good corporate governance
is a way of life and the way we do our business, encompassing
every day’s activities and is enshrined as a part of our way of
working. The Company is focused on enhancement of long-
term value creation for all stakeholders without compromising
on integrity, societal obligations, environment and regulatory
compliances. Our actions are governed by our values and
principles, which are reinforced at all levels of the organisation.
These principles have been and will continue to be our guiding
force in future.
For your Company, good corporate governance is a synonym
for sound management, transparency and adequate disclosure,
encompassing good
corporate practices, procedures,
standards and implicit rules which propel a company to take
sound decisions. 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.
- Jamsetji N. Tata
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.
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,
director’s term, retirement age and committees of the Board.
It also covers aspects relating to nomination, appointment,
induction of directors, director’s remuneration, subsidiary
oversight, Board effectiveness review.
The Company is in compliance with the requirements stipulated
under Regulation 17 to 27 read with Schedule V and clauses (b)
to (i) of sub-regulation (2) of Regulation 46 of the Securities and
Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (Listing Regulations), as
amended from time to time, including relaxations granted by
the Ministry of Corporate Affairs (MCA) and the Securities and
Exchange Board of India (SEBI) from time to time on account of
the COVID-19 pandemic, with regard to corporate governance.
The various material aspects of corporate governance and the Company’s approach to them are discussed in the table below:
Material Aspect
Avoidance
of conflict of
interest
Board independence
and minority
shareholders’
interests
Values, Ethics and
compliance
Company’s Approach
Table 1
Chairmanship of the Board is a non-executive position and separate from that of the Chief Executive Officer and Managing
Director (CEO & Managing Director). The Code of Conduct for Non-Executive Directors (NEDs), and for Independent
Directors (IDs), carries explicit clauses covering avoidance of conflict of interest. Likewise, there are explicit clauses in the
TCoC prohibiting any employee - including the Managing Director (MD) and Executive Directors (EDs) - from accepting
any position of responsibility, with or without remuneration, with any other organisation without Company’s prior written
approval. For MD and EDs, such approval must be obtained from the Board.
The TCoC, which defines the governance philosophy at Tata Power, emphasizes fairness and transparency to all
stakeholders. Shareholders can communicate any grievance to the Company Secretary’s office through a well-publicized
channel, where complaints are tracked to closure. The Stakeholders’ Relationship Committee oversees the redressal of
these complaints. The Annual General Meeting (AGM) is another forum where they can interact with the Board.
Tata Power consistently adheres to the highest principled conduct and has earned its reputation for trust and integrity in
the course of building a highly successful global business. The Company’s core values are SCALE viz. Safety, Care, Agility,
Learning and Ethics.
TCoC, which every employee signs at the time of joining the Company, serves as a moral guide and a governing framework
for responsible corporate citizenship. Periodic refresher courses are conducted to ensure continued awareness of the
code, and employee communications from the leadership reiterate the importance of our values and the TCoC.
Customers and suppliers are made aware of the TCoC principles in contract discussions, and through inclusion of specific
clauses in proposals and contracts. The Tata Power Supplier Code of Conduct is shared with suppliers as part of the
procurement process and is published on the Tata Power website.
Changes to legislation are closely monitored, risks are evaluated and effectively managed across our operations. Avenues
have been provided for all employees and stakeholders to report concerns or non-compliance which are investigated and
addressed by following due process. At the apex level, the Audit Committee oversees compliance to internal policies and
external regulations.
200
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
Material Aspect
Company’s Approach
Succession planning Succession planning is an integral part of the operations of the Company.
Succession planning of senior management is reviewed by the Board. Business and Unit Heads are invited to present
on specific topics at Board meetings from time to time, offering an opportunity for the Directors to assess their values,
competencies and capabilities.
Board of Directors
i.
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.
ii. The size and composition of the Board as on 31st March 2020 is as under:
Table 2
Size and composition of the Board
50
5
30
3
10
1
Independent, Non-Executive
(including 2 Women Directors)
Nominee Director
Non-Independent
Non-Executive
% to total number of Directors
Number of Directors
10
1
Executive
As on 31st March 2020, the Company has 10 (ten) Directors. Out of 10, 5 (five) (i.e. 50%) are Independent, Non-Executive, 4
(four) (i.e. 40%) are Non-Independent, Non-Executive (including a Nominee Director) and 1 (one) (i.e. 10%) is Executive.
None of the Directors held Directorship in more than 7 (seven) listed companies. Further, none of the IDs of the Company
served as an ID in more than 7 (seven) listed companies. None of the IDs serving as a whole-time director/managing director
in any listed entity serves as an ID of more than 3 (three) listed entities. None of the Directors held directorship in more than
20 (twenty) Indian companies, with not more than 10 (ten) public limited companies.
None of the Directors is a member of more than ten committees or chairperson of more than five committees across all the
public limited companies in which he/she is a Director.
All IDs of the Company have been appointed as per the provisions of the Companies Act, 2013 (the Act) and Listing Regulations.
Formal letters of appointment have been issued to the IDs. The Chairman of the Company is a NED and not related to the CEO
& Managing Director.
iii. The composition of the Board is in compliance with the requirements of the Act and Regulation 17 of the Listing Regulations.
The profile of the Directors can be accessed on our website at https://www.tatapower.com/corporate/board-of-directors.aspx.
iv. Four Board meetings were held during the year under review and the gap between two meetings did not exceed 120 days.
The said Meetings were held on 2nd May 2019, 1st August 2019, 8th November 2019 and 29th January 2020.
v. Audio Visual conferencing facilities are used to facilitate directors travelling or present at other
locations, to
participate in meetings.
201
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
vi. There are no inter-se relationships between the Board members. The Company has not issued any convertible instruments.
vii. The details of each member of the Board during the year ended as on 31st March 2020 and their attendance at
Board Meetings and the last AGM are provided hereunder:
Sl.
No.
Name of the
Director
Category of
Directorship
1. Mr. N. Chandrasekaran,
Chairman
DIN: 00121863
Non-Independent,
Non-Executive
Number of
Board
Meetings
attended
during
FY20
4
Whether
attended
last AGM
held on
18th June
2019
Yes
No. of other
Directorships*
No. of
Committee
positions held**
Member
Chair-
person
Member Chair-
person
Table 3
No. of
shares
held in the
Company
Directorship in other
listed entities
(category of directorship)
5
0
0
0
2,00,000
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 Consumer Products Limited
(Formerly known as ‘Tata Global
Beverages Limited’)
(Non-Independent,
Non-Executive)
NA
NA
Apollo Tyres Limited
(Independent, Non-Executive)
Voltas Limited
(Independent, Non-Executive)
Bata India Limited
(Independent, Non-Executive)
Siemens Limited
(Independent, Non-Executive)
Tata Power Renewable Energy
Limited
(Debt listed)
(Independent, Non-Executive)
HDFC Life Insurance Company
Limited
(CEO & Managing Director)
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
(Debt listed)
(Independent, Non-Executive)
Tata Power Renewable Energy
Limited
(Debt listed)
(Independent, Non-Executive)
Yes
Yes
NA
NA
NA
NA
NA
NA
NA
NA
NA
NA
Yes
0
7
0
4
Nil
Yes
Yes
0
0
3
6
1
5
2
4
Nil
2. Mr. Nawshir H. Mirza#
DIN: 00044816
3. Mr. Deepak M.
Satwalekar$
DIN: 00009627
4. Ms. Anjali Bansal
DIN: 00207746
Independent,
Non-Executive
Independent,
Non-Executive
Independent,
Non-Executive
5. Ms. Vibha Padalkar
DIN: 01682810
Independent,
Non-Executive
6. Mr. Sanjay V.
Bhandarkar
DIN: 01260274
Independent,
Non-Executive
2
2
4
4
4
202
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 Sl.
No.
Name of the
Director
Category of
Directorship
Number of
Board
Meetings
attended
during
FY20
Whether
attended
last AGM
held on
18th June
2019
No. of other
Directorships*
No. of
Committee
positions held**
Member
No. of
shares
held in the
Company
Directorship in other
listed entities
(category of directorship)
Member Chair-
person
Chair-
person
0
0
No
Yes
4
6
0
4
3
2
Nil
Nil
7. Mr. K. M. Chandrasekhar
DIN: 06466854
Independent,
Non-Executive
8. Mr. Ashok Sinha@
DIN: 00070477
Independent,
Non-Executive
9. Mr. Hemant Bhargava
(Nominee of Life
Insurance Corporation
of India (LIC) as an
equity investor)
DIN: 01922717
10. Mr. Saurabh Agrawal
DIN: 02144558
Non-Independent
Non-Executive
Non-Independent
Non-Executive
11. Mr. Banmali Agrawala
DIN: 00120029
12. Mr. Praveer Sinha&, CEO
& Managing Director
DIN: 01785164
Non-Independent
Non-Executive
Executive
4
3
3
4
3
4
No
0
3
0
1
Nil
Yes
4
2
0
2
Nil
Yes
Yes
4
4
1
0
1
0
0
0
Nil
Nil
Coastal Gujarat Power Limited
(Debt listed)
(Independent, Non-Executive)
Cipla Limited
(Independent, Non-Executive)
J. K. Cement Limited
(Independent, Non-Executive)
Coastal Gujarat Power Limited
(Debt listed)
(Independent, Non-Executive)
Maithon Power Limited
(Debt listed)
(Independent, Non-Executive)
Voltas Limited
(Nominee Director)
Larsen & Toubro Limited
(Nominee Director)
ITC Limited
(Nominee Director)
Tata Steel Limited
(Non-Independent,
Non-Executive)
Tata AIG General Insurance
Company Limited
(Debt listed)
(Non-Independent,
Non-Executive)
Nil
Tata Power Renewable Energy
Limited
(Debt listed)
(Non-Independent,
Non-Executive)
NA
13. Mr. Ashok S. Sethi^,
COO & Executive
Director
DIN: 01741911
Executive
NA
NA
NA
NA
NA
NA
NA
*
**
#
$
@
&
^
Excludes directorship in the Company, private companies, foreign companies and companies under Section 8 of the Act.
Pertains to memberships/chairpersonships of the Audit Committee and Stakeholders' Relationship Committee of Indian public companies (excluding
the Company) as per Regulation 26(1)(b) of the Listing Regulations.
Consequent upon the completion of his term as an ID, Mr. Mirza ceased to be a Director effective 12th August 2019.
Consequent upon the completion of his term as an ID, Mr. Satwalekar ceased to be a Director effective 12th August 2019.
Appointed as an Additional and Independent Director effective 2nd May 2019. His appointment was approved by the Members at the AGM held on
18th June 2019.
Mr. Praveer Sinha, CEO & Managing Director is not an ID of any other listed company.
Mr. Ashok S. Sethi superannuated as COO & Executive Director of the Company effective 30th April 2019.
viii. Necessary disclosures regarding committee positions in
other public companies as on 31st March 2020 have been
made by the Directors.
ix.
IDs are NEDs as defined under Regulation 16(1)(b) of the
Listing Regulations read with Section 149(6) of the Act
along with rules framed thereunder. In terms of Regulation
25(8) of the Listing Regulations, they have confirmed that
they are not aware of any circumstance or situation which
exists or may be reasonably anticipated that could impair
or impact their ability to discharge their duties. Based
on the declarations received from the IDs, the Board of
Directors has confirmed that they meet the criteria of
independence as mentioned under Regulation 16(1)(b)
of the Listing Regulations and that they are independent
of the management. Further, declaration on compliance
with Rule 6(3) of the Companies (Appointment and
Qualifications of Directors) Rules, 2014 as amended by
MCA Notification dated 22nd October 2019 regarding the
203
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm requirement relating to the enrolment in the Data Bank
created by MCA for IDs, has been received from all the IDs.
disclosure. The Board periodically evaluates the need for
change in its composition and size.
x.
Skills/expertise/competencies of the Board of Directors
The Board is satisfied that the current composition reflects
a mix of knowledge, skills, experience, diversity and
independence. The Board provides leadership, strategic
guidance, objective and an independent view to the
Company’s management while discharging its fiduciary
responsibilities, thereby ensuring that the management
adheres to high standards of ethics, transparency and
The Company
requires skills/expertise/competencies
in the areas of strategy, finance, leadership, technology,
governance, mergers and acquisitions, human resources,
etc. to efficiently carry on its core businesses such as
generation, distribution and transmission of thermal/
renewables/hydro power, power trading, solar photovoltaic
engineering,
(PV) manufacturing
procurement and construction (EPC) services, coal mines
and logistics.
associated
and
The Board has identified the following skills/expertise/competencies fundamental for the effective functioning of the
Company which are currently available with the Board:
Name of the Director
Area of skills/expertise/competence
Strategy
Finance
Leadership
Technical
HR
Governance
M&A
Mr. N. Chandrasekaran
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. K. M. Chandrasekhar
Mr. Ashok Sinha
Mr. Hemant Bhargava
Mr. Saurabh Agrawal
Mr. Banmali Agrawala
Mr. Praveer Sinha
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
√
-
-
√
√
√
√
√
√
√
√
√
√
√
-
-
-
-
√
-
-
√
√
√
√
√
-
√
√
√
-
√
√
√
√
√
√
√
√
√
√
√
√
√
-
√
√
-
√
√
√
-
√
xi. Changes in Board composition
Changes in board composition during FY20 are tabled hereunder:
Name of the Director
Sl.
No.
Nature of change
1. Mr. Ashok S. Sethi
Superannuated as COO & Executive Director of the Company
2. Mr. Ashok Sinha
Appointed as an Additional and Independent Director. His appointment was approved by the
Members at the AGM held on 18th June 2019
Table 4
Government/
Regulatory
√
-
-
-
√
√
√
√
√
√
Table 5
Date of change
30th April 2019
2nd May 2019
3. Mr. Nawshir H. Mirza
Consequent upon the completion of his term as an ID, Mr. Mirza ceased to be a Director.
12th August 2019
4. Mr. Deepak M. Satwalekar Consequent upon the completion of his term as an ID, Mr. Satwalekar ceased to be a Director. 12th August 2019
None of the IDs have resigned before the expiry of their respective tenures during FY20.
xii. Term of Board membership
xiii. Selection and appointment of new directors
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 MD/ EDs is
65 years, NEDs is 70 years and IDs is 75 years.
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. The
potential Board member is also assessed on the basis
204
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
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. If the Board approves,
the person is appointed as an Additional Director whose
appointment is subject to the approval of the Members at
the Company’s general meeting.
xiv. 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 https://www.tatapower.com/
pdf/investor-relations/ Terms-& - conditions- of-IDs-
appointment.pdf.
xv.
Information provided to the Board
During FY20, information as mentioned in Part A of
Schedule II of the Listing Regulations, has been placed
before the Board for its consideration.
xvi. Meeting of Independent Directors
During the year under review, a separate meeting of the
IDs was held on 18th March 2020. At the said meeting, the
IDs reviewed the performance of the NEDs, of the Board
as a whole and the Chairman, after considering the view
of the ED and the NEDs. They also assessed the quality,
quantity and timeliness of flow of information between
the Company’s management and the Board.
xvii. Details of
familiarisation programmes
for
Directors including Independent Directors
All Board members of the Company are accorded 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 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.
Details of the familiarisation program on cumulative basis
are available on the Company’s website at https://www.
tatapower.com/pdf/investor-relations/familiarisation-
programme-for-directors.pdf.
xviii. Code of Conduct
The Company has adopted the Code of Conduct for
NEDs including IDs which provides for details as laid
down in Schedule IV to the Act, as may be applicable. The
Company has also adopted a Code of Conduct for all its
employees including EDs. All Board members and senior
management personnel have affirmed compliance with
their respective Code of Conduct. The CEO & Managing
Director has also confirmed and declared the same. The
declaration is reproduced at the end of this Report and
marked as Annexure I.
xix. Tata Code of Conduct for Prevention of Insider
Trading & Code of Corporate Disclosure Practices
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 Tata Code of Conduct
for Prevention of 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.
xx. Remuneration to Directors
Details of remuneration to NEDs during and for the
year under review:
Sl.
No.
Name of
the Director
1. Mr. N. Chandrasekaran$
Chairman
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
8. Mr. Ashok Sinha&
9. Mr. Hemant Bhargava@
10. Mr. Saurabh Agrawal #
11. Mr. Banmali Agrawala #
(Gross Amount in ₹) Table 6
Sitting Fees paid
during FY20
Commission for
FY20*
2,40,000
1,50,000
1,20,000
3,90,000
4,80,000
4,50,000
3,00,000
2,70,000
1,80,000
2,40,000
2,40,000
-
24,00,000
19,00,000
51,00,000
58,00,000
55,00,000
51,00,000
40,00,000
40,00,000
-
-
* Commission relates to the financial year ended 31st March 2020, which
was approved by the Board on 19th May 2020, to be paid during FY21.
$ As per the policy, Mr. N. Chandrasekaran has abstained from receiving
commission from the Company.
^ Ceased to be Directors of the Company on account of completion of their
term of appointment as IDs effective 12th August 2019.
205
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
& Appointed as an Additional and Independent Director effective 2nd May
2019. His appointment was approved by the Members at the AGM held
on 18th June 2019.
@ Sitting fees for attending meetings are paid to Mr. Bhargava and the
Commission is paid to LIC.
# In line with the 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.
The NEDs are paid remuneration by way of Commission and
Sitting Fees. The distribution of Commission amongst the
NEDs is placed before the NRC and the Board. The Commission
payment for the financial year ended 31st March 2020 was
distributed based on the Company’s performance and keeping
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 the out-of-pocket expenses, if any, incurred by the
Directors for attending meetings.
Details of remuneration and perquisites paid to the CEO & Managing Director and COO & Executive Director during FY20:
(Gross Amount in ₹) Table 7
Sl.
No.
Name of
the Director
Salary & allowances
Commission for
FY20@
Perquisites &
Benefits
Retirement
Benefits
Total
1.
2.
Mr. Praveer Sinha
CEO & Managing Director
Mr. Ashok S. Sethi#
COO & Executive Director
Total
2,11,71,818
2,75,00,000
20,34,499
26,24,400
5,33,30,717
16,82,600
-
2,28,54,418
2,75,00,000
1,31,073
21,65,572
3,36,00,667
3,54,14,340
3,62,25,067
8,87,45,057
@ Commission (variable component) relates to the financial year ended 31st March 2020, which was approved by the Board on 19th May 2020, to be paid
during FY21.
# Mr. Sethi superannuated as COO & Executive Director of the Company effective 30th April 2019.
Salient features of the agreement executed by the Company with CEO & Managing Director:
Table 8
Terms of Agreement
Period of appointment
Remuneration
Commission
Incentive Remuneration
Benefits, perquisites and allowances (excluding Company's
contribution to Provident Fund, Superannuation, Gratuity,
Leave Encashment)
Notice period
Severance fees
Stock Option
Mr. Praveer Sinha, CEO & Managing Director
01.05.2018 to 30.04.2023
Basic salary upto a maximum of ₹ 15,00,000 p.m.
Within the limits stipulated under the Act.
Not exceeding 200% of basic salary.
As may be determined by the Board from time to time.
The Agreement 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
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
the Committees are placed
before the Board for information or for approval, if 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.
recommendations of
The Board has seven committees as on 31st March 2020,
comprising five statutory committees and two non-statutory
committees that have been formed considering the needs
of the Company. Details of the statutory and non-statutory
committees are as follows:
❖ Statutory Committees
The Board has the following statutory Committees as on
31st March 2020:
• Audit Committee of Directors (AC)
• Nomination and Remuneration Committee (NRC)
206
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
• 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 2020:
• Mr. Ashok Sinha, Chairman
• Ms. Vibha Padalkar
• Mr. Sanjay V. Bhandarkar
• Mr. Saurabh Agrawal
• Ms. Anjali Bansal
• Mr. K. M. Chandrasekhar
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 1st May 2019, 31st July 2019,
7th November 2019, 3rd December 2019 and 27th January 2020,
with the requisite quorum.
The attendance details of meetings of this Committee are
as follows:
Name of
the Director
Mr. Ashok Sinha*
Mr. Nawshir H. Mirza@
Ms. Vibha Padalkar
Mr. Sanjay V. Bhandarkar
Mr. Saurabh Agrawal
Ms. Anjali Bansal*
Mr. K. M. Chandrasekhar*
Table 9
No. of Meetings
attended
No. of Meetings
held during
tenure
3
2
5
5
5
3
3
3
2
5
5
4
3
3
*
@
Appointed as the Members of the Committee effective 13th
August 2019. Mr. Ashok Sinha was designated as the Chairman
effective 13th August 2019.
Consequent upon completion of his term as an ID, he ceased to be the
Chairman and member of the Committee effective 12th August 2019.
The CFO assists the Committee in discharge of its responsibilities.
The Committee invites such employees or advisors as it
considers appropriate to attend. The CFO, the head of internal
audit and statutory auditors are generally invited to attend
meetings unless the Committee considers otherwise. Quarterly
Reports are sent to the members of the Committee on matters
relating to the Insider Trading Code. 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 terms of the Charter broadly include:
•
Oversee the processes that ensure the
financial statements.
integrity of
•
•
•
•
•
•
•
•
•
•
•
Oversee the adequacy and effectiveness of the processes
and controls for compliance with laws and regulations.
Oversee 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.
Approval/modification
related parties.
of
the
transactions with
Enquiry into reasons for any default by the Company in
honouring its obligations to its creditors and members.
Oversee the quality of internal accounting controls and
other controls.
Oversee the system for storage (including back-up).
Oversee the quality of the financial reporting process,
including the selection of the most appropriate of
permitted accounting policies.
Ensure the independence of the auditor.
Recommend
remuneration of the auditors (including cost auditors).
the appointment and
the Board
to
Framing of rules for the hiring of any current or former
employee of the audit firm.
Scrutinize inter-corporate loans and investments.
• Monitor the end use of funds raised through public offers.
•
•
•
•
Conducting the valuation of any undertaking or asset
of the Company.
Oversee the internal audit function and approve the
appointment of the Chief Internal Auditor.
Bring 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.
207
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm All the recommendations made by the AC during the year under
review were accepted by the Board.
Mr. Deepak Satwalekar, then Chairman of the NRC, was present
at the last AGM held on 18th June 2019.
Mr. Nawshir H. Mirza, then Chairman of the AC, was present at
the last AGM held on 18th June 2019.
Corporate Social Responsibility Committee
The Committee comprises the following as on 31st March 2020:
Nomination and Remuneration Committee
The Committee comprises the following as on 31st March 2020:
• Mr. Sanjay V. Bhandarkar, Chairman
• Mr. N. Chandrasekaran
• Ms. Vibha Padalkar
The Committee met 4 times during the year under review.
These meetings were held on 2nd May 2019, 3rd October 2019,
8th November 2019 and 18th March 2020 with
the
requisite quorum.
• Ms. Anjali Bansal, Chairperson
• Mr. K. M. Chandrasekhar
• Mr. Praveer Sinha
The Committee met twice during the year under review.
These meetings were held on 23rd July 2019 and 7th November
2019 with the requisite quorum.
The attendance details of meetings of this Committee are
as follows:
The attendance details of meetings of this Committee are
as follows:
Name of
the Director
Name of
the Director
Mr. Sanjay V. Bhandarkar *
Mr. Deepak M. Satwalekar @
Mr. N. Chandrasekaran
Ms. Vibha Padalkar*
Ms. Anjali Bansal$
No. of Meetings
held during
tenure
3
1
4
3
1
Table 10
No. of Meetings
attended
3
1
4
3
1
* Appointed as Members of the Committee effective 13th August 2019.
Mr. Sanjay V. Bhandarkar was designated as the Chairman effective
13th August 2019.
@ Consequent upon completion of his term as an ID, he ceased to be the
Chairman and member of the Committee effective 12th August 2019.
$ Consequent upon re-constitution of the Committee effective 13th
August 2019, she ceased to be a member of the Committee.
is responsible for
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
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
respectively to the Board’s Report. The Company does not have
any Employee Stock Option Scheme.
The Board has also approved the Charter of the NRC defining
its composition, powers, responsibilities, reporting, evaluation,
etc. The terms of the Charter broadly include Board composition
and succession planning, evaluation, remuneration, board
development and review of HR Strategy, Philosophy and
Practices.
208
Ms. Anjali Bansal
Mr. Deepak M. Satwalekar *
Mr. K. M. Chandrasekhar **
Mr. Praveer Sinha
No. of Meetings
held during
tenure
2
1
1
2
Table 11
No. of Meetings
attended
2
1
1
2
* Consequent upon completion of his term as an ID, he ceased to be a
member of the Committee effective 12th August 2019.
** Appointed as a member of the Committee effective 13th August 2019.
The Company has adopted a CSR policy which indicates the
activities to be undertaken by the Company as specified in
Schedule VII to the Act. The policy, including overview of
projects or programs proposed to be undertaken, is provided
on the Company’s website at https://www.tatapower.com/pdf/
aboutus/csr-policy-14.pdf.
Brief Terms of Reference/Roles and Responsibilities:
•
•
Formulate and recommend to the Board, a CSR Policy
indicating the activities to be undertaken by the Company
as specified in Schedule VII of the Act.
Recommend the amount of expenditure to be incurred on
the activities mentioned in the CSR Policy.
• Monitor the CSR Policy.
Ms. Anjali Bansal, Chairperson of the CSR Committee, was
present at the last AGM held on 18th June 2019.
Stakeholders Relationship Committee
The Committee comprises the following as on 31st March 2020:
• Mr. Banmali Agrawala, Chairman
• Mr. Hemant Bhargava
• Ms. Anjali Bansal
The Committee met twice during the year under review. These
meetings were held on 17th January 2020 and 11th March 2020
with the requisite quorum.
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 The attendance details of meetings of this Committee are
as follows:
•
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 of
the Director
Mr. Banmali Agrawala*
Ms. Anjali Bansal**
Mr. Sanjay V. Bhandarkar@
Mr. Hemant Bhargava#
Mr. Ashok S. Sethi$
No. of Meetings
held during
tenure
2
2
NA
2
NA
Table 12
No. of Meetings
attended
2
2
NA
1
NA
* Mr. Banmali Agrawala who was earlier a member of the Committee was
designated as the Chairman effective 13th August 2019.
** Appointed as a member of the Committee effective 13th August 2019.
@ Consequent upon re-constitution of the Committee effective 13th
August 2019, he ceased to be a member of the Committee.
# Appointed as a member of the Committee effective 2nd May 2019.
$ Consequent upon his superannuation as COO & Executive Director of
the Company effective 30th April 2019, he ceased to be a member of
the Committee.
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 terms of the Charter broadly include:
Review statutory compliances relating to all security
holders.
Resolve the grievances of all security holders.
Oversee compliances in respect of dividend payments and
transfer of unclaimed amounts to the Investor Education
and Protection Fund.
Oversee and review of all matters related to the transfer of
securities of the Company.
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.
The status of total number of complaints received during the
year under review is as follows:
Sl.
No.
A.
B.
Description
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
Table 13
Total
Received
Replied
Pending
17
2
1
0
0
0
20
16
2
1
0
0
0
19
1
0
0
0
0
0
1
Ensure setting of proper controls and oversight of
performance of the Registrar and Share Transfer Agent (RTA).
• For the 1 unresolved complaint received through the SEBI SCORES
System (System), the Action Taken Report (ATR) has been uploaded on
the System and the same is pending for closure as on 31st March 2020.
share
certificates
• There were no pending transfers/demats as on 31st March 2020.
Approve
of the Company.
issuance of duplicate
Approve transmission of securities.
Review movements
structure of the Company.
in shareholding and ownership
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.
Mr. Sanjay V. Bhandarkar, then Chairman of the SRC, was present
at the last AGM held on 18th June 2019.
Risk Management Committee
The Committee comprises the following as on 31st March 2020:
• Ms. Vibha Padalkar, Chairperson
• Mr. Banmali Agrawala
• Mr. Sanjay V. Bhandarkar
• Mr. Hemant Bhargava
• Mr. Ashok Sinha
209
•
•
•
•
•
•
•
•
•
•
•
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm The Committee met thrice during the year under review. These
meetings were held on 9th July 2019, 13th December 2019 and
17th March 2020 with the requisite quorum.
The attendance details of meetings of this Committee are
as follows:
Name of
the Director
Ms. Vibha Padalkar
Mr. Nawshir H. Mirza*
Mr. Sanjay V. Bhandarkar**
Mr. K. M. Chandrasekhar@
Mr. Ashok Sinha**
Mr. Hemant Bhargava**
Mr. Banmali Agrawala
Mr. Ashok S. Sethi#
No. of Meetings
held during
tenure
Table 14
No. of Meetings
attended
3
1
2
1
2
2
3
3
1
2
1
2
2
3
NA
NA
* Consequent upon completion of his term as an ID effective 12th August
2019, he ceased to be a member of the Committee.
** Appointed as members of the Committee effective 13th August 2019.
@ Consequent upon re-constitution of the Committee effective 13th
August 2019, he ceased to be a member of the Committee.
# Consequent upon his superannuation as COO & Executive Director
of the Company effective 30th April 2019, he 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 terms of the Charter broadly include:
•
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 and approving Enterprise-wide Risk Management
(ERM) framework.
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 organisation.
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.
Ms. Vibha Padalkar, Chairperson of the RMC, was present at the
last AGM held on 18th June 2019.
❖ Non-statutory Committees
The Board has also constituted
statutory Committees:
(i) Executive Committee of the Board
(ii) Committee of Directors
the
following non-
Executive Committee of the Board
The Committee comprises the following as on 31st March 2020:
• Mr. N. Chandrasekaran, Chairman
• Mr. Sanjay V. Bhandarkar
• Mr. Praveer Sinha
Notes:
Consequent upon completion of his term as an ID effective 12th August
2019, Mr. Deepak M. Satwalekar ceased to be a member of the Committee.
Consequent upon his superannuation as COO & Executive Director of
the Company effective 30th April 2019, Mr. Ashok S. Sethi 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)
Business and strategy review.
ii) Long-term financial projections and cash flows.
iii) Capital and revenue budgets and capital expenditure
programmes.
iv) Acquisitions, divestments and business restructuring
proposals.
v) Any other item as may be decided by the Board.
No Meeting was held during the year under review and the
relevant matters from the above scope were discussed at
various Board meetings held during the year with the intent to
avail expertise of all the Board members.
210
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 Committee of Directors
The Committee comprises the following as on 31st March 2020:
• Mr. Sanjay V. Bhandarkar, Chairman
• Mr. Banmali Agrawala
• Mr. Praveer Sinha
Terms of Reference
The role of this Committee is as follows:
•
•
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.
•
•
•
•
•
•
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.
Change in authorised signatories for the existing 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.
General Body Meetings
a) The details of the last three AGMs of the Company:
• 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 earlier delegated by the Board/
Committee thereof, to a Committee comprising the CEO &
Managing Director and COO & Executive Director.
No Meeting was held during the year under review but the
relevant matters in the above scope were passed through
circular resolutions and the same were noted at various Board
meetings held during the year.
Year ended
Day, Date & Time
Venue
Special Resolutions passed
31st March 2019
31st March 2018
31st March 2017
Tuesday, 18th June 2019
at 3 p.m. (IST)
Friday, 27th July 2018
at 3 p.m. (IST)
Wednesday, 23rd August 2017
at 3 p.m. (IST)
Birla Matushri Sabhagar,
Sir Vithaldas Thackersey
Marg, 19, New Marine
Lines, Mumbai
400 020
• Nil
• Private placement of Non-Convertible Debentures/
Bonds
• Private placement of Non-Convertible Debentures/
Bonds
Table 15
211
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm b) Extraordinary General Meeting:
No extraordinary general meeting of the Members was
held during FY20.
c) Postal Ballot:
(i) Details of special resolutions passed by postal ballot:
During the year under review, no special resolution was
passed by means of Postal Ballot.
(ii) Details of Voting Pattern: Not Applicable
(iii) Person who conducted the aforesaid postal ballot
exercise: Not Applicable
(iv) Whether any special resolution is proposed to be
conducted through postal ballot: No
(v) Procedure for Postal Ballot:
In compliance with Regulation 44 of the Listing Regulations
and Sections 108, 110 and other applicable provisions of the
Act, read with applicable Rules, the Company provides an
electronic voting facility to all its shareholders, to enable them
to cast their votes electronically. The Company engages the
services of National Securities Depository Limited (NSDL) for
the purpose of providing e-voting facility to all its shareholders.
The shareholders have the option to vote either by physical
ballot or e-voting.
The Company dispatches the postal ballot notices and forms
along with self-addressed business reply envelope to its
shareholders whose names appear on the Register of Members/
list of beneficiaries as on a cut-off date. The postal ballot notice
is sent to the shareholders in electronic form to the e-mail IDs
registered with the Depository Participants (DPs)/RTA.
Voting rights are reckoned on the paid-up value of the shares
registered in the names of the shareholders as on the cut-off
date. Shareholders desiring to exercise their votes by physical
postal ballot forms are requested to return the forms duly
completed and signed, to the scrutinizer on or before the
closing of the voting period. Shareholders desiring to exercise
their votes by electronic mode are requested to vote before
close of business hours on the last day of e-voting. The last date
specified by the Company for receipt of duly completed postal
ballot forms or e-voting is deemed to be the date of passing of
the resolution.
The scrutinizer submits his report to the Chairman of the Board of
Directors or any person authorized by him, after the completion
of scrutiny, and the consolidated results of the voting by postal
ballot are then announced. The results are also displayed on the
Company’s website, besides being communicated to the stock
exchanges, depository and RTA.
Means of Communication to the shareholders
a) Calendar of financial year ended 31st March 2020
The Company follows April-March as the financial year. The
meetings of Board of Directors for approval of quarterly financial
results for the financial year ended 31st March 2020 were held
on the following dates:
Particulars
Table 16
Date
Quarter ended 30th June 2019
1st August 2019
Quarter/half-year ended 30th September 2019
8th November 2019
Quarter/ nine months ended 31st December
2019
29th January 2020
Quarter/ year ended 31st March 2020
19th May 2020
b) Quarterly, Half-yearly and Annual Results
Quarterly, Half-yearly and Annual Results of the Company are published in widely circulated national newspapers, as per the details
given below:
Name of the Newspaper
Indian Express - All editions
Financial Express
Region
Ahmedabad, Vadodara, Mumbai, Chandigarh, New Delhi, Kolkata, Lucknow, Nagpur and
Pune
Mumbai, Pune, Ahmedabad, New Delhi, Lucknow, Chandigarh, Kolkata, Hyderabad,
Bengaluru, Kochi and Chennai
Loksatta - All editions
Ahmednagar, Mumbai, Pune, Nagpur, Aurangabad and New Delhi
Jam-e-Jamshed Weekly
Mumbai
Vyapar + Phulchhab
Vyapar (Mumbai) and Phulchhab (Rajkot)
Table 17
Language
English
English
Marathi
Gujarati
Gujarati
212
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
Post 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, half-yearly and annual financial results are also
uploaded on the Company's website at https://www.
tatapower.com/investor-relations/quarterly-results.aspx.
c) Annual Reports and Annual General Meetings: The
Annual Reports are emailed/posted to Members and
others entitled to receive them. The Annual Reports
are 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. In line with the MCA Circular
dated 5th May 2020 and SEBI Circular dated 12th May 2020,
the Notice of the AGM along with the Annual Report 2019-
20 is being sent only through electronic mode to those
Members whose e-mail addresses are registered with the
Company/Depositories.
d) 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.
e) Website: Comprehensive information about 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, presentations made to analysts, etc.
f) 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.
g) 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
homogeneous compliance data structures between Stock
Exchanges and MCA. XBRL filings are done on the NEAPS
portal as well as the BSE online portal.
featuring
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.
i)
System
SEBI Complaints Redressal
(SCORES):
A centralised web-based complaints redressal system which
serves as a centralised database of all complaints received,
enables uploading of Action Taken Reports (ATRs) by the
concerned company and online viewing by the investors of
actions taken on the complaint and its current status.
j) Dedicated email ID for communication with Investor
Education and Protection Fund Authority: The
Company has a dedicated e-mail id iepf@tatapower.com
for communication with the IEPF Authorities. Stakeholders
are requested to send their IEPF claim documents at
iepfclaim@tsrdarashaw.com.
k) Reminder to investors: Reminders to collect unclaimed
dividend on shares or debenture redemption/interest are
sent to the concerned shareholders and debenture holders.
General Shareholder Information
(a) Details of AGM: Thursday, 30th July 2020 at 3:00 p.m. (IST)
In accordance with the General Circular
issued by the MCA on 5th May 2020,
the AGM will be held through Video
Conferencing (VC) / Other Audio Visual
Means (OAVM) only. For details, please
refer to the Notice of the AGM.
As required under Regulation 36(3) of
the Listing Regulations and Secretarial
Standard 2, particulars of a Director
seeking re-appointment at this AGM are
given in the Annexure to the Notice of
AGM.
(b) Financial Year : 1st April to 31st March
(c) Dividend
: Dividend of ₹ 1.55 per Equity share fully
paid up (155%) for the financial year
2019-20 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
Monday, 3rd August 2020. For the
Members who are unable to receive the
dividend directly in their bank accounts,
the Company shall dispatch the dividend
warrant to them, upon normalisation of
postal services and other activities.
(d) Book Closure : From Thursday, 16th July 2020 to Thursday,
30th July 2020 (both days inclusive).
213
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm (e) E-voting Dates : The cut-off date for the purpose of
determining the shareholders eligible for
e-voting is 23rd July 2020.
The e-voting commences on Monday, 27th
July 2020 at 9.00 a.m. (IST) and ends on
Wednesday, 29th July 2020 at 5.00 p.m. (IST).
(f) International Securities Identification Number (ISIN):
INE245A01021
(g) Corporate Identity Number (CIN):
L28920MH1919PLC000567
(h) 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.
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 2020:
• 436 (Issued in 1994 to Citibank NA)
• 2,980 (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:
Table 18
Sl.
No.
Series
Amount outstanding as
on 31st March 2020
(C in crore)
Listed on
Name of the Debenture trustee with full
contact details
125
106
210
1,500
1,500
1,500
250
500
750
Centbank Financial Services 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
NSE
NSE
NSE
NSE
BSE & NSE
BSE
NSE
NSE
NSE
9.15% Secured, Non-Convertible,
Non-Cumulative, Redeemable,
Taxable Debentures with Separately
Transferable Redeemable Principal
Parts
9.15% Secured, Non-Convertible,
Non-Cumulative, Redeemable,
Taxable Debentures with Separately
Transferable Redeemable Principal
Parts
9.40% Redeemable, Transferable,
Secured, Non-Convertible Debentures
10.75% Unsecured Debentures
11.40% Perpetual Bonds
7.99% Unsecured, Redeemable, Non-
Convertible Debentures
9% Series I Unsecured, Redeemable,
Taxable, Listed, Rated, Non-
Convertible Debentures
8.84% Series II Unsecured,
Redeemable, Taxable, Listed, Rated,
Non-Convertible Debentures
8.84% Series III Unsecured,
Redeemable, Taxable, Listed, Rated,
Non-Convertible Debentures
1.
2.
3.
4.
5.
6.
7.
8.
9.
214
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
During the year, the Company redeemed 9.48% 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 2019-20 and 2020-21.
(j) Listing Details:
Name of the Exchange
BSE Limited
(physical form)
(demat form)
Table 19
Stock Code
400
500400
National Stock Exchange of India Limited
TATAPOWER EQ
(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
Month
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
High
(D)
74.02
70.65
69.00
73.90
59.90
67.25
61.50
59.60
56.50
61.50
57.95
44.65
BSE
Low
(D)
67.50
61.20
63.55
58.90
51.10
53.85
57.65
54.50
51.40
56.25
46.65
32.35
No. of shares
traded
2,08,82,981
1,67,84,998
1,07,78,854
1,30,84,995
1,39,93,133
4,59,75,279
2,17,94,800
2,28,30,597
87,11,872
78,64,450
88,29,109
1,65,74,652
High
(D)
74.40
70.80
69.00
73.85
59.75
67.20
61.60
59.70
56.50
61.55
58.00
44.75
NSE
Low
(D)
67.70
61.35
63.50
58.90
51.10
53.85
57.60
54.50
51.40
56.25
46.70
32.30
Table 20
No. of shares
traded
14,74,10,750
14,72,61,127
10,51,61,102
16,33,13,005
19,28,11,950
22,87,86,254
14,93,60,352
19,32,29,456
16,36,80,713
17,33,72,170
17,68,76,778
28,05,10,315
(l) The market share price in comparison to broad-based indices like BSE Sensex and Nifty are given below:
(i) Comparison of the Company’s Share Price with BSE
(ii) Comparison of the Company’s Share Price with NSE Nifty
Sensex and BSE Power Sensex in FY20:
and NSE Nifty Energy in FY20:
Months
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
Tata Power
closing price
at BSE
67.75
68.85
69.00
60.55
56.75
62.50
59.30
57.40
56.50
58.05
46.65
32.85
BSE Sensex
Table 21
BSE Power
Sensex
39,031.55
39,714.20
39,394.64
37,481.12
37,332.79
38,667.33
40,129.05
40,793.81
41,253.74
40,723.49
38,297.29
29,468.49
1,969.54
2,010.12
2,093.86
1,966.31
1,887.96
1,934.40
1,986.56
1,924.80
1,926.25
1,899.25
1,716.78
1,377.95
Months
April 2019
May 2019
June 2019
July 2019
August 2019
September 2019
October 2019
November 2019
December 2019
January 2020
February 2020
March 2020
Tata Power
closing price
at NSE
67.80
68.80
69.00
60.55
56.75
62.50
59.30
57.35
56.50
58.10
46.70
32.85
Nifty
Nifty Energy
Table 22
11,748.15
11,922.80
11,788.85
11,118.00
11,023.25
11,474.45
11,877.45
12,056.05
12,168.45
11,962.10
11,201.75
8,597.75
16,500.00
16,560.35
16,046.80
14,559.45
14,382.25
15,501.60
16,486.15
16,232.15
15,908.20
14,838.80
13,651.00
11,124.15
215
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm (iii) Performance in comparison to broad-based indices:
Table 23
NSE
74.40
32.85
-55.85
Company's Share Price
As at 01.04.2019
As at 31.03.2020
Change (%)
BSE
74.20
32.85
-55.72
Indices
As at 01.04.2019
As at 31.03.2020
Change (%)
Sensex
38,871.87
29,468.49
-24.19
Table 24
Nifty
11,669.15
8,597.75
-26.32
(m)
None of
suspended from trading.
the Company’s
securities have been
(n)
(i) Registrars and Share Transfer Agents: TSR Darashaw
Consultants Private Limited (TSRD) (Formerly known
as 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
(ii) Branches of TSRD
1. 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
2. Bungalow No.1, ‘E’ Road, Northern Town, Bistupur,
Jamshedpur 831 001.
Tel : 0657 242 6616, Fax : 0657 242 6937;
E-mail: tsrdljsr@tsrdarashaw.com
3. Tata Centre, 1st Floor, 43, Jawaharlal Nehru Road,
Kolkata 700 071.
Tel : 033 2288 3087, Fax : 033 2288 3062;
E-mail : tsrdlcal@tsrdarashaw.com
4. 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
(iii) Agent of TSRD
Shah Consultancy Services Pvt. Ltd.
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 TSRD between 10.00 a.m. to 3.30 p.m. (Monday to
Friday except bank holidays).
(o) Share transfer system:
All the transfers are processed by the RTA and are
approved by the Stakeholders’ Relationship Committee.
All share transfer and other communications regarding
share certificates, change of address, dividends, etc.
should be addressed to the RTA.
Compliance of Share Transfer formalities
As per the requirement of Regulation 40(9) of the Listing
Regulations, the Company has obtained 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 the last two financial years are given below:
Shares transferred/transmitted in
physical form
Number of transfers/
transmissions
Number of shares
FY20
1,046
Table 25
FY19
5,601
22,40,811
69,35,646
(p) Shareholding details of the Company:
i. Distribution of Shareholding by range of shareholding as on 31st March 2020:
Range of Holdings
1 - 5000
5001 - 10000
10001 - 20000
20001 - 30000
30001 - 40000
40001 - 50000
50001 - 100000
100001 and above
Total
Number of shares
Number of shareholders
Physical
2,07,48,004
81,78,786
43,91,017
17,99,267
12,78,500
5,24,580
10,83,400
19,74,340
Demat
14,19,41,235
5,44,29,312
4,97,76,081
2,55,01,823
1,58,25,667
1,19,20,221
3,16,57,084
2,33,37,44,193
3,99,77,894 2,66,47,95,616
% Physical
Total
16,374
6.02
16,26,89,239
1,186
2.31
6,26,08,098
314
2.00
5,41,67,098
75
1.01
2,73,01,090
36
0.63
1,71,04,167
12
0.46
1,24,44,801
17
1.21
3,27,40,484
6
2,33,57,18,533
86.36
18,020
2,70,47,73,510* 100.00
%
90.87
6.58
1.74
0.42
0.20
0.07
0.09
0.03
Demat
3,37,305
7,688
3,583
1,040
456
264
450
472
100.00 3,51,258
%
96.03
2.19
1.02
0.30
0.13
0.07
0.13
0.13
Total
3,53,679
8,874
3,897
1,115
492
276
467
478
100.00 3,69,278
Table 26
%
95.78
2.40
1.06
0.30
0.13
0.07
0.13
0.13
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.
216
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
ii. Shareholding pattern of the Company as on 31st March 2020:
Particulars
Promoters (including Promoter Group)
Directors and their relatives
Insurance Companies
Financial Institutions/Banks
Mutual Funds / UTI
Clearing Members
Corporate Bodies
Body Corporate-NBFC
Limited Liability Partnership-LLP
Alternate Investment Fund
Trusts
Resident Individuals & HUF
Central / State Governments
Foreign Institutional Investors
Foreign Portfolio Investors - Corporate
Foreign Banks
OCBs
OCBs-DR
Global Depository Receipts
Non-Resident Indians
QIB-Insurance Co. Regd. with IRDA
IEPF Suspense A/c
Total
iii. Top 10 Shareholders of the Company as on 31st March 2020
Equity Shares of D 1 each
Table 27
No. of Shares
1,00,66,91,528
36,862
33,65,79,095
1,68,62,117
35,70,45,674
90,20,989
3,32,00,613
81,950
8,23,333
1,48,32,479
25,28,314
35,88,42,229
2,56,09,803
4,51,848
50,31,63,143
19,75,582
4,000
12,21,000
4,22,300
2,44,45,856
28,96,492
80,38,303
%
37.22
0.00
12.44
0.62
13.20
0.33
1.23
0.00
0.03
0.55
0.09
13.27
0.95
0.02
18.60
0.07
0.00
0.05
0.02
0.90
0.11
0.30
2,70,47,73,510
100.00
Table 28
Sl. No.
Name of Shareholder
Total holdings
% to capital
1
2
3
4
5
6
7
8
9
Tata Sons Private Limited
ICICI Prudential Value Discovery Fund
Matthews Pacific Tiger Fund
Life Insurance Corporation of India
The New India Assurance Company Limited
Reliance Capital Trustee Co Ltd-A/C Nippon India Growth Fund
General Insurance Corporation of India
First State Investments Icvc- Stewart Investors Global Emerging Markets Leaders Fund
Tata Steel Limited
10
Franklin India Equity Advantage Fund
Total
95,39,46,984
21,83,11,309
18,03,16,487
17,15,81,237
5,21,93,839
5,04,59,465
4,68,62,960
4,58,28,682
3,91,22,725
3,63,17,715
35.27
8.07
6.67
6.34
1.93
1.87
1.73
1.69
1.45
1.34
1,79,49,41,403
66.36
217
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
(q) Details of Equity Shares in dematerialised and physical form as on 31st March 2020:
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 of Shares
Dematerialised form
NSDL* (A)
CDSL (B)
Sub-total (A+B)
Physical form
Total
Shares of ₹ 1 each
Shareholders
Number
2,57,71,12,853
8,76,82,763
2,66,47,95,616
3,99,77,894
2,70,47,73,510
% to total
95.28
3.24
98.52
1.48
100.00
Number
2,10,840
1,40,418
3,51,258
18,020
3,69,278
Table 29
% to total
57.10
38.02
95.12
4.88
100.00
* includes shares held by Tata Sons and promoter group representing 37.22% of the total shareholding.
(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 to 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/pdf/aboutus/commodity.pdf.
ii) Exposure of the Company to commodity and commodity risks faced by the Company throughout the year:
Total exposure of the listed entity to commodities in ₹: Total coal exposure of the Company in FY 2019-20 is
•
approx. ₹ 2,213.69 crore.
•
Exposure of the listed entity to various commodities:
Commodity
Name
Exposure in ₹ towards the
particular commodity
Exposure in quantity
terms towards the
particular commodity
Table 30
% of such exposure hedged through
commodity derivatives
Domestic market
International market
Total
OTC
Exchange
OTC
Exchange
Coal
• Trombay Plant - ₹ 1,347.31 crore
• Trombay Plant - 2.38 Million MT (imported)
• Jojobera Plant - ₹ 866.38 crore
• Jojobera Plant - 2.02 Million MT (domestic)
Nil
Nil
Nil
Nil
Nil
•
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). The 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 Company, therefore, inherently faces commodity price risk from use of coal for its power generation facilities.
However, 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 price risk
on imported as well as domestic coal is not hedged.
To address short term price volatility and assure supply, the Company has entered into long term coal procurement
agreements. Further, to manage sourcing, the Company has a dedicated Fuel Procurement team with strong
understanding of coal markets. This team works closely with coal suppliers and the Company’s operations team to
plan and source its coal supplies through reliable and lowest cost supply chain.
The foreign exchange variation on the imported coal is allowed as a full cost pass-through in the tariff of the two
regulated businesses and is therefore not hedged.
218
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
(s) Plant locations of the Company and Group Companies:
Type of plants
Thermal Power
Generating Plants
Address of plants
Table 31
Trombay Generating Station, Mahul Road, Chembur, Mumbai, Maharashtra
Jojobera Power Plant, Jojobera, Jamshedpur, Jharkhand
Haldia Power Plant, HFC Complex, Patikhali Haldia, District Purb, East Medinipur, West Bengal
Coastal Gujarat Power Limited, Mundra Ultra Mega Power Plant, Tunda-Vandh Road, Village Tunda, Taluka Mundra, Kutch,
Gujarat
Maithon Power Limited, Village Dambhui, P.O. Barbindia, P.S. Nirsa, District Dhanbad, Jharkhand
Industrial Energy Limited, Inside of Tata Steel Limited, Kalinganagar, Jajpur, Jajpur Road, Dubri, Odisha
Rithala CCGT Power Plant, 2/9, Substation Building, Behind Char Dham Apartment, Sector 9, Rohini, New Delhi
Hydro Generating
Stations
Generating Station, Bhira P.O. Bhira, Taluka Mangaon, District Raigad, Maharashtra
Generating Station, Bhivpuri, P.O. Bhivpuri Camp, Taluka Karjat, District Raigad, Maharashtra
Generating Station, Khopoli, P.O. Khopoli Power House, District Raigad, Maharashtra
Generating Station, Itezhi Tezhi Power Corporation, Plot 3039, Makishi Road, Fairview, Post Net 239, Private Bag E891, Manda
Hill, Lusaka, Zambia
Dagachhu Hydro Power Corporation Limited, Dagapela, Dagana, Bhutan
Adjaristaqali Georgia LLC, Shuakhevi Hydro Power Plant, Adjara Region Shuakhevi Municipality, Village Akhaldaba, Georgia
Wind Farms
Supa Wind Farm, Kauda Dongar, Village Shahjahanpur & Pimpalgoan Kauda, Taluka - Parner, District Ahmednagar, Maharashtra
Khandke Wind Farm, Village Ranjani Agadgaon, Deogaon & Mehkari, 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
Nivade 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, Village Mota Panchdevda, Taluka Kalavad, District Jamnagar, Gujarat
Rojmal Phase I & II Wind Farm, Village Sukhpur, Taluka Babra, District 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
Vagarai Wind Farm Limited, Appayampatti Village, Oddan Chatram Taluk, District Dindigul, Tamil Nadu
Inox Wind Infrastructure Limited, 220 KV Pooling Substation Dangri, Teh Fatehgarh, District, Jaisalmer, Rajasthan
Tata Power Renewable Energy Limited, Dangri Wind Farm, Village Dangri, District Jaisalmer, Rajasthan
Walwhan Wind RJ Limited, 132 KV Dhalmoo Substation,Village Dhalmoo, Tehsil Pratapgarh, District Pratapgarh, Rajasthan
Walwhan Energy Rajasthan Limited, Dangri Wind Farm, Village Dangri, 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
219
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Type of plants
Address of plants
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
Tata Power Solar Plant, Belampalli Village, Ankepalli and Venkapalli, Mandal, Tandur, District Mancherial, Telangana
Plot No.6, Gujarat Solar Park Charanka, District Patan, Gujarat
400 MW TPREL Solar Power Plants (blocks # 15,17, 18, 19, 21, 27, 32 and 34) @ 2000 MW Solar Park, Thirumani Village, Pavagada
Taluka, 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
Walwhan Solar Energy GJ Limited, Village Khirasara, Taluka Anjar, District Kutch, Gujarat
MI MySolar 24 Private Limited, Village Fatepur, Taluka Dasada, District Surendranagar, Gujarat
Dreisatz MySolar 24 Private Limited, Village Fatepur, Taluka Dasada, District Surendranagar, Gujarat
Walwhan Solar Raj Limited, Khasra No. 44, Village Rawra, Tehsil Bap, Phalodi District, Jodhpur, Rajasthan
Northwest Energy Private Limited, Khasra No. 240/1, Village Rawra, Tehsil Bap, Phalodi District, Jodhpur, Rajasthan
Walwhan Solar AP Limited, Village Shrimandrup Nagar and Rawra, Phalodi District, Jodhpur, Rajasthan
Walwhan Solar RJ Limited, Village Deh, Tahsil Kolayat, District Bikaner, Rajasthan
Walwhan Solar MP Limited:
- 105 MW Solar Power plant, Village Bhagwanpura, Diken Area, Tehsil Jawad, District Neemuch, Madhya Pradesh
- 25 MW Solar Power plant, Village Padaliya, Ratangarh Area, Tehsil Singoli, District Neemuch, Madhya Pradesh
Walwhan Solar MH Limited, MIDC Mangalwedha (G.C.), Taluka Mangalwedha, Maharashtra
Walwhan Renewable Energy Limited, C/o Clean Sustainable Solar Energy Private Limited, Village Shirshuphal, Baramati, Pune,
Maharashtra
Walwhan Solar AP Limited., Plot No- 5A, 6A & 6B., IDC Park, APIIC, Pulivendula, Kadapa District, Andhra Pradesh
Walwhan Renewable Energy Limited
- 30 MW Site, Survey No. 863 & 864, Near Lomada Village, Shimadripuram Mandal, Pulivendula Taluka, District Kadapa,
Andhra Pradesh
- 70 MW Site Vermalapudu, Owk - Mandal Tq., Kurnool District, Andhra Pradesh
- 16 MW Site Rajapura Village, Molakalmuru Tq., Chitradurga District, Karnataka
- 34 MW Site, Kodihalli Village, Hiriyuru Tq., Chitradurga District, Karnataka
- 50 MW Site Bedareddyhalli Village, Challakere Tq., Chitradurga District, Karnataka
- 50 MW Solar Site, Panchapatti, Veeriyapalayam Village, Krishnarayauram Taluk, Karur District
- 50 MW Solar Site, Iyermalai, Karupathur & Vayalur Village, Krishnarayauram Taluk, Karur District
- Kaithar, Metupirancheri Village, Manur Taluk, Tiruneliveli
- Noida, Uttar Pradesh
- 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 & TT PET - 100MW, Krishnapuram Village, Valaiyeduppu Post, Musiri Taluk, Trichy District,
Tamil Nadu
Walwhan Solar BH Limited:
- Bahera, Block: Dobhi, P.O.: Barachatti Anchal, Gaya, Bihar
- Savkala & amp, Khaira Khurd, Block Amas, P.O.: Sherghati Anchal, Sherghati, Gaya, Bihar
Walwhan Solar MH Limited, Village Dhalmu, Pratapgarh, Rajasthan
150 MW TPREL MSEDCL Chhayan Solar PV Plant, Chhayan I, Pokhran, District Jaisalmer, Rajasthan
Transmission and
Distribution Division
Kalyan Receiving Station, Shil Road, Netivli, Kalyan, District Thane, Maharashtra
220
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 Type of plants
Address of plants
Dharavi Receiving Station, Matunga, Near Shalimar Industrial Estate, Dharavi, Mumbai, Maharashtra
Ambernath Receiving Station, Murbad Road, Varap, P.O. (Via) Kalyan, District Thane, Maharashtra
Backbay Receiving Station, 148, Lt. Gen. J. Bhonsle Marg, Nariman Point, Mumbai, Maharashtra
Bhokarpada Receiving Station, Hiranandani Business Park, Opposite Maharashtra Jeevan Pradhikaran, At - Bhokarpada
Village, Post Poyanje, Panvel, Raigad, Maharashtra
Carnac Receiving Station, 34, Sant Tukaram Road, Carnac Bunder, Mumbai, Maharashtra
Chembur Receiving Station, P.O. Box HO 18801, RCF Premises, Near Gate No.2 Chembur, Mumbai, Maharashtra
Kolshet Substation, Ghodbunder Road, Manpada, District Thane, Maharashtra
Kurla Receiving Station, Tata Power, Kirol Road, Kamani, (Inside HDIL Premier Compound), Kurla (West), Mumbai, Maharashtra
Malad Substation, Malad Marve Road, Malad (West), Mumbai, Maharashtra
Mankhurd Substation, Near Mankhurd - Ghatkopar Highway, Mumbai Pune Road, Mankhurd, Mumbai, Maharashtra
Parel Receiving Station, G D Ambekar Marg (Parel Tank Road), Parel, Mumbai, Maharashtra
Panvel Receiving Station, Old Mumbai Pune Road, Behind MSEDCL Bhingari Substation, Bhingari Panvel, District Raigad,
Maharashtra
Sahar Receiving Station, Near Hotel Leela, Sahar T2 Airport Road, Andheri East, Mumbai, Maharashtra
Salsette Receiving Station, Lake Road, Bhandup, Mumbai, Maharashtra
Versova Substation, Off Andheri - Malad Link Road, Andheri (West), Mumbai, Maharashtra
Vikhroli Substation, Godrej Soap Premises, Vikhroli (East), Mumbai, Maharashtra
Mahalaxmi Substation, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra
BKC Receiving Station, Near Asian Heart Hospital, Opposite Bharat Diamond Bourse, Bandra Kurla Complex,
Bandra (East), Mumbai, Maharashtra
Borivali Receiving Station, Tata Power House Road, Borivali (East), Mumbai, Maharashtra
Saki Receiving Station, 42, Saki Vihar Road, Andheri (East), Mumbai, Maharashtra
Powai Receiving Station, Near MTNL, Hiranandani Kailas Complex Road, Powai, Mumbai, Maharashtra
42/43, Electronic City, Electronic City Post Office, Hosur Road, Bengaluru, Karnataka
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 under review, the Company has sustained its long-term bank facility credit rating of CRISIL AA- (Positive) which
has been reaffirmed by CRISIL Limited (CRISIL). The rating of AA- (Positive) 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 Non-Convertible debentures (NCD) programme (including perpetual and subordinated Non-convertible
debentures) of the Company as AA-/Positive. 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 instrument carry lowest credit risk.
Further, ICRA Limited (ICRA) has reaffirmed the rating on NCD programme of the Company as AA- (Stable). The 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 CARE - 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.
221
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Other Disclosures
Particulars
Regulations
Details
Website link for details/policy
Table 32
Regulation 23 of the Listing
Regulations and Schedule
V (C) 10(f ) to the Listing
Regulations
Disclosures on materially
significant
related party
transactions that may have
potential conflict with the
listed entity
interests of
at large and Web link for
policy on dealing with
related party transactions
There are no material related party transactions
during the year under review that have conflict with
the interest of the Company. Transactions entered
into with related parties during the financial year
were in the ordinary course of business and at
arms’ length basis and were approved by the
Audit Committee. Certain transactions which
were repetitive in nature were approved through
omnibus route.
The Board has received disclosures from senior
management relating to material, financial and
commercial transactions where they and/or their
relatives have personal interest. There are no
materially significant related party transactions
which have potential conflict with the interest of
the Company at large.
The policy on dealing with
related party
transactions adopted by the Company is uploaded
on the Company’s website.
There were no
instances of non-compliance,
penalties, strictures imposed on the Company by
the Stock Exchanges, the SEBI or any statutory
authority, on any matter related to capital markets,
during the last 3 years.
https://www.tatapower.
com/pdf/aboutus/rpt-policy-
framework-guidelines.pdf
-
Schedule V (C) 10(b) to the
Listing Regulations
Regulation 22 of the Listing
Regulations and Schedule
V (C) 10(c) to the Listing
Regulations
The Company has adopted a Whistle Blower 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. The said policy
has been posted on the Company’s website. The
Company affirms that no personnel have been
denied access to the Chairman of Audit Committee
of Directors.
https://www.tatapower.com/
pdf/aboutus/whistle-blower-
policy-and-vigil-mechanism.pdf
Details of non - compliance
by the Company, penalty,
strictures imposed on the
the Stock
Company by
Exchange or SEBI or any
statutory authority on any
matter related to capital
markets
Vigil
Details of establishment
of
Mechanism,
Blower policy,
Whistle
and
that
affirmation
no personnel has been
denied access to the Audit
Committee
222
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 Particulars
Regulations
Details
Website link for details/policy
Details
of mandatory
requirements and adoption
the non-mandatory
of
requirements
Schedule II Part E of the
Listing Regulations
Web
link where policy
for determining material
subsidiaries is disclosed
Disclosures of commodity
price risks and commodity
hedging activities
Regulation 16 (1)(c) of the
Listing Regulations and
Schedule V (C) 10(e) to the
Listing Regulations
Schedule V (C) 10(g) to the
Listing Regulations
raised
Details of utilisation of
through
funds
allotment
preferential
institutional
or qualified
placement as
specified
under Regulation 32(7A)
A certificate from Company
Secretary
in practice for
non-debarment/
disqualification
Schedule V (C) 10(h) to the
Listing Regulations
Schedule V (C) 10(i) to the
Listing Regulations
Schedule V (C) 10(j) to the
Listing Regulations
Disclosure with
respect
to non-acceptance of any
recommendation of any
Committee of the Board
is mandatorily
which
required,
along with
reasons thereof
requirements of
All mandatory
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, are as
under:
• 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 email 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.
The policy for determining material subsidiaries
is uploaded on the
adopted by the Board
Company’s website.
The disclosure of commodity price risks and
is provided under section
hedging activities
‘General Shareholder Information’. The policy on
Commodity Price Risk Management adopted
by the Company is uploaded on the Company’s
Website.
The Company did not raise any funds through
preferential allotment or qualified
institutions
placement during the year under review.
from
A certificate
the Practicing Company
Secretaries 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/MCA or any such statutory authority and
the same is reproduced at the end of this report
and marked as Annexure IV.
All the recommendations of the various mandatory
committees were accepted by the Board.
-
https://www.tatapower.
com/pdf/aboutus/policy-
for-determining-material-
subsidiaries.pdf
https://www.tatapower.com/
pdf/aboutus/commodity.pdf
-
-
-
223
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Particulars
Regulations
Details
Website link for details/policy
Subsidiary Companies
Regulation 24 of the Listing
Regulations
Policy on Archival and
Policy on Preservation of
Documents
30
Regulation
and
Regulation 9 of the Listing
Regulations
Policy on Determination of
Materiality for Disclosures
Regulation 30 of the Listing
Regulations
Code of Conduct
Regulation 17 of the Listing
Regulations
Dividend
Policy
Distribution
Regulation 43A of
Listing Regulations
the
Terms and conditions of
Appointment of IDs
Regulation 46 of the Listing
Regulations
reviews
The Audit Committee
the financial
statements of subsidiaries of the Company. It
investments made by such
also reviews the
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 unlisted
subsidiary companies are placed before the Board.
Composition of the Board of material subsidiaries
is in accordance with the Regulation 24(1) of the
Listing Regulations.
The Policy on Archival and Policy on Preservation
of Documents, duly adopted by the Board, are
uploaded on the Company’s website.
The Policy on determination of materiality for
disclosures adopted by the Board is uploaded on
the Company’s website.
The members of the Board and Senior Management
Personnel have affirmed compliance with the Code
of Conduct applicable to them. A certificate by the
CEO & Managing Director, on the compliance of
same, is reproduced at the end of this report and
marked as Annexure I.
The Dividend Policy adopted by the Board is
uploaded on the Company’s website.
and
Terms
re-appointment of
Company’s website.
conditions
appointment/
IDs are available on the
of
Familiarisation Program
Regulation 25(7) read with
Regulation 46 of the Listing
Regulations
Details of familiarisation program imparted to IDs
are available on the Company’s website.
-
https://www.tatapower.com/
pdf/aboutus/archival-policy.
pdf
https://www.tatapower.com/
pdf/aboutus/preservation-
policy-documents.pdf
https://www.tatapower.com/
pdf/aboutus/determining-
policy.pdf
-
https://www.tatapower.com/
pdf/aboutus/dividend-policy.
pdf
https://www.tatapower.
com/pdf/investor-relations/
Terms-&-conditions-of-IDs-
appointment.pdf
https://www.tatapower.
com/pdf/investor-relations/
familiarisation-programme-for-
directors.pdf
Other Disclosures:
1.
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.
2.
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 reproduced at the end of this report and marked
as Annexure II.
3. The Company has obtained compliance certificate from the
Practising Company Secretaries on corporate governance.
The same is reproduced at the end of this report and
marked as Annexure III.
4. 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 during the year, are given below:
Particulars
Statutory Audit
Other Services
Out-of-pocket
expenses
Total
By the
Company*
By
Subsidiaries*
Total
Amount
(₹ in crore) Table 33
3.63
0.58
0.15
4.36
2.66
0.98
0.24
3.88
6.29
1.56
0.39
8.24
* The above fees are exclusive of applicable tax.
224
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 5. 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. 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 at https://
www.tatapower.com/pdf/aboutus/Sexual-harass-policy.
pdf. All employees (permanent, contractual, temporary and
trainees, etc.) are covered under this Policy.
Status of complaints as on 31st March 2020:
Sl. No.
Particulars
Table 34
Number of
Complaints
1.
2.
3.
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
3
2
1*
* the case was received in the last week of March 2020.
6. 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.
7.
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.
8. The Company follows Indian Accounting Standards (Ind-
AS) in the preparation of its financial statements.
9. As required under Regulation 36(3) of the Listing Regulations
and the secretarial standards, particulars of a Director
seeking re-appointment at the forthcoming AGM are given
in the Notice of the AGM to be held on 30th July 2020.
10. Directors and Officers Liability Insurance:
As per the provisions of the Act and in compliance with
Regulation 25(10) of the Listing Regulations, the Company
has taken a Directors and Officers Liability Insurance (D&O)
on behalf of all Directors including IDs, 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:
➢ 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 Investor Education and Protection Fund 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 Investor Education
and Protection Fund (IEPF) maintained by the Central
Government. In pursuance of this, the dividend remaining
unclaimed or unpaid in respect of dividends declared
upto the financial year ended 31st March 2012 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 MCA
at http://www.iepf.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/unpaid for a period of 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 year ended 31st March 2012 and remained unpaid
or 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 2019-20.
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 2019-20 are as follows:
Table 35
Amount of unclaimed
dividend transferred
₹ 1,54,60,564.70
Number of Equity shares transferred
12,22,452
225
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
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 2020)
16.08.2013
13.08.2014
05.08.2015
21.09.2016
24.08.2017
27.07.2018
18.06.2019
1,79,27,750.20
2,14,96,290.48
2,33,54,239.41
2,76,93,326.70
2,74,62,986.20
2,23,50,690.70
2,11,27,505.10
(Amount in C) Table 36
Last date for
claiming
payment from
TSRD
19.09.2020
15.09.2021
07.09.2022
24.10.2023
20.09.2024
20.08.2025
17.05.2026
It may be noted that the unclaimed dividend for the
financial year 2012-13 declared on 16th August 2013, is
due to be transferred to the IEPF. The same can, however,
be claimed by the Members by 19th September 2020.
Members who have not encashed the dividend warrant(s)
from the financial year ended 31st March 2013 onwards
may forward their claims to TSRD before they are due to be
transferred to the IEPF.
The Members whose unclaimed dividends/shares have
been transferred to IEPF, may claim the same by making an
application to the IEPF Authority in e-Form IEPF-5 available
on www.iepf.gov.in. No claim shall lie against the Company
in respect of the dividend/shares so transferred.
➢ Shares held in electronic form: Members holding shares
in electronic form may please note that:
i)
For the purpose of making cash payments to the investors
through Reserve Bank of India approved electronic mode
of payment (such as ECS, NECS, NEFT, RTGS etc.), relevant
bank details available with the depositories will be used.
Members are requested to update their bank details
with their DPs.
ii)
Instructions regarding change of address, nomination and
power of attorney should be given directly to the DPs.
➢ Shares held in physical form: To facilitate better servicing,
Members holding shares in physical form are requested to
notify/send to TSRD 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.
➢ Payment of dividend or interest or redemption or
repayment:
As required under Regulation 12 read with Schedule I to the
Listing Regulations, companies are directed to use, either
directly or through the depositories or through their RTA,
electronic clearing services (local, regional or national),
226
direct credit, real time gross settlement, national electronic
funds transfer, etc. for making payment of dividend/
interest on securities issued/redemption or repayment
amount to the investors. For investors holding shares in
demat mode, relevant bank details from the depositories
will be sought. Investors holding shares in physical form,
are requested to register instructions regarding their bank
details with the RTA. Only in cases where either the bank
details such as Magnetic Ink Character Recognition (MICR),
Indian Financial System Code (IFSC) etc., that are required
for making electronic payment, are not available or the
electronic payment instructions have failed or have been
rejected by the bank, physical payment instruments for
making cash payments to the Investors may be used.
➢
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 e-mail 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 TSRD, for redressal of grievances/
responses to queries.
The Shareholders’ Relations Team
Registered Office of the Company.
Contact Person: Mr. J. E. Mahernosh Tel.: 022 6665 7508
is
located at the
➢ E-voting:
E-voting is a common internet infrastructure that enables
investors to vote electronically on resolutions of companies.
The Company will also have the E-voting facility for the
items to be transacted at this AGM. The MCA has authorised
NSDL and CDSL for setting up electronic platform to
facilitate casting of votes in electronic form. The Company
has entered into agreements with NSDL and CDSL for
availing E-voting facilities.
➢ 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 TSRD. Members holding shares in
electronic form are requested to give the nomination
request to their respective DPs directly.
the Company’s website under
Form No. SH.13 can be obtained from TSRD or downloaded
from
section
‘Investor Relations’ at https://www.tatapower.com/pdf/
nomination-form-14.pdf
the
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
➢ Depository Services:
Members may write to the respective Depository or to
TSRD for guidance on depository services. Address for
correspondence with the Depositories is as follows:
National Securities
Depository Limited
Trade World, 4th Floor,
Kamala Mills Compound,
Senapati Bapat Marg,
Lower Parel,
Mumbai 400 013
Tel. No. : 022 2499 4200
Fax Nos. : 022 2497 6351
e-mail : info@nsdl.co.in
website : www.nsdl.co.in
Central Depository Services
(India) Limited
Marathon Futurex, A-Wing,
25th floor, N. M. Joshi Marg,
Lower Parel,
Mumbai 400 013
Tel. No. : 022 2272 3333
Fax Nos. : 022 2272 3199
e-mail : investor@cdslindia.com
website : www.cdslindia.com
➢ Secretarial Audit:
In terms of the Act, the Company appointed M/s. Makarand
M. Joshi & Co, Practising Company Secretaries, to conduct
Secretarial Audit of records and documents of the
Company for FY20. The Secretarial Audit Report is provided
as Annexure V to the Board’s Report.
➢ Description of voting rights:
All Equity shares issued by the Company carry equal
voting rights.
➢ Awareness Sessions/Workshops:
Employees across the Company as well as those forming
part of the Tata Power 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 emails,
presentations and workshops.
➢ Stakeholder Engagement:
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,
for
meeting with key stakeholders,
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,
employee engagement surveys
in
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
for
➢
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 are requested to 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.
iii) Confidentiality of security details
Folio Nos./DP ID/Client ID should not be disclosed to any
unknown persons. Signed delivery instruction slips should
not be given to any unknown persons.
iv) Dealing with Registered Intermediaries
through
Members
registered
intermediary. In case the intermediary does not act
professionally, Members can take up the matter with SEBI.
transact
should
a
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) Weblinks
policies
Corporate
are
Company’s website
the
on
https://www.tatapower.com/corporate/policies.aspx.
of
available
and
Charters
at
227
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
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 2020.
DECLARATION
Annexure I
For The Tata Power Company Limited
Praveer Sinha
CEO & Managing Director
DIN: 01785164
Mumbai, 19th May 2020
228
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20 Chief Executive Officer (CEO) & Chief Financial Officer (CFO) Certification
Annexure II
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 2020 and to the
best of our knowledge and belief, we state that:
(i)
these statements do not contain any materially untrue statement or omit any material fact or contain statements that
might be misleading;
(ii) 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) significant changes, if any, in the internal control over financial reporting during the year;
(ii) 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
(iii) 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, 19th May 2020
Praveer Sinha
CEO & Managing Director
(DIN:01785164)
R. N. Subramanyam
Chief Financial Officer
229
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Practicing Company Secretaries’ Certificate on Corporate Governance
CORPORATE GOVERNANCE COMPLIANCE CERTIFICATE
Annexure III
To
The Members,
The Tata Power Company Limited
We have examined the compliance of conditions of Corporate Governance by The Tata Power Company Limited (“the Company”)
for the year ended on March 31, 2020, as stipulated in Regulations 17 to 27 and clauses (b) to (i) of sub-regulation (2) of Regulation
46 and Para C, D and E of Schedule V of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The compliance of conditions of Corporate Governance is the responsibility of the management. Our examination was limited to
procedures and implementation thereof, adopted by the Company for ensuring the compliance of the conditions of the 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 representations made by the
management, we certify that the Company, to the extent applicable, has complied with the conditions of Corporate Governance as
stipulated in Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and Para C, D and E of Schedule V of SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015.
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 Makarand M. Joshi & Co.
Makarand Joshi
Partner
FCS No. 5533
CP No. 3662
Peer Review No: P2009MH007000
Place: Mumbai
Date: 15th May 2020
230
Report on Corporate GovernanceThe Tata Power Company Limited Integrated Annual Report 2019-20
Practicing Company Secretaries’ Certificate on Independent Directors
CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS
Annexure IV
(Pursuant to Regulation 34 (3) and Schedule V Para C Clause (10) (i) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)
To,
The Members
THE TATA POWER COMPANY LIMITED
We have examined the relevant disclosures provided by the Directors (as enlisted in Table A) to THE TATA POWER COMPANY
LIMITED having CIN L28920MH1919PLC000567 and having registered office at Bombay House, 24, Homi Mody Street,
Mumbai, Maharashtra, 400001 (hereinafter referred to as ‘the Company’) for the purpose of issuing this Certificate, in accordance
with Regulation 34 (3) read with Schedule V Para C clause 10 (i) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number (DIN)
status at the portal www.mca.gov.in) as considered necessary and based on the disclosures of the Directors, we hereby certify that
none of the Directors on the Board of the Company (as enlisted in Table A) have been debarred or disqualified from being appointed
or continuing as Directors of the companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs or any such
other Statutory Authority for the period ended as on March 31, 2020.
Sl. No. Name of the Directors
Director Identification Number
Date of appointment in the Company
Table A
00121863
00207746
01682810
01260274
06466854
01922717
02144558
00120029
00070477
01785164
11/02/2017
14/10/2016
14/10/2016
14/10/2016
04/05/2017
24/08/2017
17/11/2017
17/11/2017
02/05/2019
01/05/2018
1.
2.
3.
4.
5.
6.
7.
8.
9.
Mr. Chandrasekaran Natarajan
Ms. Anjali Bansal
Ms. Vibha Padalkar
Mr. Sanjay Bhandarkar
Mr. Kesava Chandrasekhar
Mr. Hemant Bhargava
Mr. Saurabh Agrawal
Mr. Banmali Agrawala
Mr. Ashok Sinha
10.
Mr. Praveer Sinha
For Makarand M. Joshi & Co.
Practicing Company Secretaries
Kumudini Bhalerao
Partner
FCS No. 6667
CP No. 6690
Place: Mumbai
Date: 19th May 2020
UDIN: F006667B000258952
231
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Business Responsibility Report
Tata Power believes in conducting its business activities in an environmentally and socially responsible manner. Your commitment
to sustainability is showcased through a robust foundation of Corporate Governance, which strengthens social and environmental
stewardship of your Company. Tata Power’s vision is to ‘Empower a billion lives through sustainable, affordable and innovative
energy solutions’. This clearly showcases the interdependence of your Company's business activities with the environment and
community. Your Company's practice towards social responsibility and environmental stewardship also incorporates SCALE (Safety,
Care, Agility, Learning and Ethics) values, along with key elements and principles of the National Voluntary Guidelines (NVG).
The Business Responsibility Report (BRR) is aligned with National Voluntary Guidelines (NVGs) on Social, Environmental and
Economic Responsibilities of Business, issued by Ministry of Corporate Affairs, and is in accordance with clause (f) of sub regulation
(2) of regulation 34 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Your Company's Business Performance and Impacts are disclosed based on the 9 Principles as mentioned in the NVGs
Principle 1
Principle 2
Ethics Transparency
& Accountability
Product Life
Cycle Sustainability
Principle 3
Employee
Well-Being
Principle 4
Stakeholder
Engagement
Principle 5
Human Rights
Principle 6
Environment
Principle 7
Policy Advocacy
Principle 8
Inclusive Growth
and Equitable
Development
Principle 9
Customer
Value
Creation
Section A: General Informaton about the Company
Corporate Identity Number (CIN) of the company
L28920MH1919PLC000567
Name of the company
Registered address
Website
E-mail ID
The Tata Power Company Limited
Bombay House, 24, Homi Mody Street, Mumbai – 400 001
www.tatapower.com
tatapower@tatapower.com
Financial Year reported
2019-20
Sector(s) that the Company is engaged in (industrial
activity code-wise)
ITC Code: N/A
Sector Description: Power, Electronic Products and
Technical Services
List three key products/services that the Company manufactures/
provides (as in Balance Sheet)
1. Power through Conventional and Renewable Generation
2. Transmission and Distribution of electricity
3. Next Generation Power Solutions - Solar Rooftop, EV Charging
infrastructure, Home Automation and Microgrids
1.
2.
3.
4.
5.
6.
7.
8.
232
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 9.
Total number of locations where business activity is undertaken by the Company
a.
b.
Number of International Locations (Provide details of major 5): Singapore, Georgia, Zambia, Indonesia and Bhutan
Number of National Locations: Tata Power has 117 locations. The operational status as on 31st March 2020 are given below:
States
Maharashtra
Delhi
Gujarat
Karnataka
Rajasthan
Tamil Nadu
Jharkhand
Andhra Pradesh
Madhya Pradesh
West Bengal
Odisha
Bihar
Haryana
Punjab
Telangana
Uttar Pradesh
Uttarakhand
No. of Project locations
4
2
18
13
1
6
11
2
33
2
1
10
6
3
2
2
1
Hydros
Wind
1
3
6
1
1
9
4
2
Solar
3
2
15
6
1
3
10
1
18
1
5
4
3
1
2
10. Markets served by the Company:
Delhi License Area
Andhra Pradesh
Bihar
Delhi
Gujarat
Haryana
Jharkhand
Uttarakhand
Local/ State/ National
Mumbai License Area
Jharkhand (Jamshedpur Circle)
Madhya Pradesh
Maharashtra
Odisha
Punjab
Rajasthan
Ajmer License Area
Odisha Dist.
Karnataka
Tamil Nadu
Telangana
Uttar Pradesh
West Bengal
Section B: Financial Details of the Company
1.
2.
3.
4.
*Calculated as per Section 135 of the Companies Act, 2013
Paid up capital (INR)
Total Turnover (INR)
Total profit after taxes (INR)
Total Spending on Corporate Social Responsibility (CSR) as percentage of Profit after taxes (%)
Thermal
Transmission Distribution
1
1
3
1
1
1
1
1
1
1
1
1
1
International
Singapore
Georgia
Zambia
Bhutan
Indonesia
₹ 271 crore
₹ 7,075 crore
₹ 148 crore
2%*
List of activities in which expenditure in the above has been incurred
Tata Power undertook CSR initiatives in alignment with the 5 Thrust areas as outlined in the CSR Policy. Tata Power (Standalone) CSR Initiatives
covered 14.06 lakh beneficiaries across 225 locations in Maharashtra, Gujarat, Jharkhand and West Bengal. The Initiatives are aligned to 6
UNSDGs and MCA Schedule VII of Companies Act 2013.
Thrust Areas
Education
Health and Sanitation
Livelihood and Skill Building
Water
Financial Inclusivity
Misc. & Club Enerji
% Spend
16
9
43
6
4
22
The highlights of Tata Power Group Entities CSR Interventions are reported in Social and Relationship Capital section of Integrated Report
(Reference Pg. 82)
233
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Section C: Other Details
1.
the Company have any Subsidiary Company/
Does
Companies?
As on 31st March 2020, the Company had 54 subsidiaries (40
are wholly owned subsidiaries), 30 Joint Ventures (JVs) and 5
Associates. Of the subsidiaries, 3 companies have been classified
as JVs under Indian Accounting Standards (Ind AS).
2.
3.
Do the Subsidiary C ompany/Companies participate in the
BR Initiatives of the parent company? If yes, then indicate the
number of such subsidiary company(s)
All the Company’s subsidiaries are guided by Tata Code of
Conduct (TCoC) to conduct their business in an ethical, transparent
and accountable manner. The Company positively influences and
encourages its subsidiaries to adopt Business Responsibility (BR)
initiatives as recommended by their respective CSR Committees.
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 Company’s suppliers/ vendors
are critical for operations and are engaged through the
Responsible Supply Chain Management (RSCM) policy which
covers guidance on Health & Safety, Environment, Human Rights
and Ethics & Compliance. The suppliers/ vendors are required
to ensure conformance to the RSCM policy in addition to the
Tata Code of Conduct (TCoC).
Section D: Business Responsibility
Information
1.
Details of Director/ Directors responsible for BR
a.
Details of the Director/ Directors responsible for
implementation of the BR policy/ policies
(BR)
DIN Number 01785164
Name
Mr. Praveer Sinha
Designation CEO & Managing Director
b. Details of BR Head
DIN No.
07252909
Name
Ms. Shalini Singh
Designation Chief- Corp. Communications & Sustainability
Contact
022 67171666
2.
a.
Principle-wise (as per NVGs) BR Policy/ policies (Reply in Y/N)
Sl. No. Questions
P1
P2
P3
P4
P5
P6
P7
P8
P9
1
2
3
4
5
6
7
8
9
Do you have policy/policies for….
Has the policy been formulated in consultation
with relevant stakeholders?
Does the policy conform to any national /
international standards? If yes, specify.
Yes
Yes
Yes
Tata Power policies are based on the NVG principles and also confirm to the
International standards like ISO 9000, 14000, and 45001, UNGC principles, ILO principles
and United Nations Sustainable Development Goals (SDGs).
Has the policy been approved by the Board?
If yes, has it been signed by the MD /owner/CEO/
appropriate Board Director?
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.
Does the Company have a specified committee
of the Board/ Director/Official to oversee the
implementation of the policy?
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 to view the policy 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 its policy/policies?
Does the Company have a grievance redressal
mechanism related to the policy / policies to
address stakeholders’ grievances related to
policy/policies?
Yes
Yes
Yes
10
Has the Company carried out independent audit/
evaluation of the working of this policy by an
internal or external agency?
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 wellbeing 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
234
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2019-20
3. Governance related to BR
a.
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.
Sustainability performance at Tata Power represents a
long-standing Board agenda, consistently monitored
by the Board CSR Committee and Apex Leadership.
the
With
CSR committee also recommends the activities
to be undertaken by the Company as specified in
Schedule VII to the Act or prescribed by the rules.
quarterly meetings,
established
Principle 2 (P2): Businesses should provide goods and
services that are safe and contribute to sustainability
throughout their life cycle
1.
List up to 3 products or services whose design has
incorporated social or environmental concerns, risks,
and/or opportunities.
The future of energy infrastructure – Manufactured Capital
(Reference Pg. 46, 49, 51)
build
our
Strengthening
sustainable societies – Social & Relationship Capital
(Reference Pg. 75, 95)
communities
to
2.
Apex
leadership
SBU Heads
Corporate
Sustainability Team
Sustainability SPOCs
Thermal, T&D, Hydros, Renewables, HR,
CSR, Ethics, IA&RM, Environment etc.
ii.
Fig. Sustainability Governance Structure
For each such product, provide the following details
in respect of resource use (energy, water, raw material
etc.) per unit of product (optional):
i.
the previous year
Reduction during sourcing/production/ distribution
throughout
achieved since
the value chain?
Leading the New Energy World – Natural Capital
(Reference Pg. 101, 102, 105, 108)
Reduction during usage by consumers (energy,
water) has been achieved since the previous year?
Strengthening
build
sustainable societies – Social & Relationship Capital
(Reference Pg. 78, 95)
communities
our
to
b. Does
frequently
the Company publish a BR or a
Sustainability Report? What is the hyperlink for
viewing this report? How
is
published?
Yes, Tata Power is publishing an Integrated Annual
Report for FY20 based on the IIRC framework.
The Company also published Sustainability Reports
in previous years in accordance with Global Reporting
Initiative (GRI) standards annually. These reports can
be viewed at https://www.tatapower.com
it
Section E: Principle-Wise Performance
Principle 1 (P1): Businesses should conduct and govern
themselves with Ethics, Transparency and Accountability
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?
Leadership with a difference - Corporate Governance
(Reference Pg. 16)
3. Does the Company have procedures in place for
sustainable sourcing (including transportation)?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 81)
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?
Strengthening
build
our
sustainable societies – Social & Relationship Capital
(Reference Pg. 81, 90, 94)
communities
to
5. Does the Company have mechanism to recycle products
and waste? If yes, what is the percentage of recycling
waste and products?
Leading the New Energy World – Natural Capital
(Reference Pg. 108)
2. How many stakeholders’ complaints have been
received in the past financial year and what percentage
was satisfactorily resolved by the management? If so,
provide details thereof, in about 50 words or so.
Leadership with a difference - Corporate Governance
(Reference pg. 17)
Principle 3 (P3): Businesses should promote the wellbeing
of all employees
1.
Please indicate the total number of employees.
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 60)
235
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
2.
3.
4.
Please indicate the total number of employees hired
on temporary/ contractual/casual basis.
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 60)
indicate
the number of permanent
Please
women employees.
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 60)
Please indicate the number of permanent employees
with disability.
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 60)
5. Do you have an employee association that
is
recognised by management?
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 66)
Stakeholder Engagement (Reference Pg. 25)
6. What percentage of your permanent employees are a
member of this recognised employee association?
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 66)
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.
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 66)
Leadership with a difference - Corporate Governance
(Reference Pg. 17)
8. What percentage of your employees were given safety
& skill up-gradation training in the last year?
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 63, 64, 65)
Principle 4 (P4): Businesses should respect the interests
of, and be responsive to the needs of all stakeholders,
especially those who are disadvantaged, vulnerable,
and marginalised.
1. Has
the Company mapped
internal and
its
external stakeholders?
Trust with transparent communications – Stakeholder
Engagement (Reference Pg. 24, 25)
236
2. Out of the above, has the Company
identified
the disadvantaged, vulnerable & marginalised
stakeholders?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 94)
3. Are there any special initiatives taken by the Company
to engage with the disadvantaged, vulnerable, and
marginalised stakeholders? If so, provide details
thereof, in about 50 words or so.
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 94)
Principle 5 (P5): Businesses should respect and promote
human rights.
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?
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 66)
2. How many stakeholder complaints have been received
in the past financial year and what percent was
satisfactorily resolved by the management?
Engaged, agile, future ready workforce – Human Capital
(Reference Pg. 66)
Principle 6 (P6): Business should respect, protect, and make
efforts to restore the environment
1. Does the policy related to Principle 6 cover only the
Company or extends to the Group/Joint Ventures/
Suppliers/Contractors/NGOs/others?
Leading the New Energy World – Natural Capital
(Reference Pg. 100)
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 81)
for
2. Does the Company have strategies/initiatives to address
global environmental issues such as climate change,
global warming, etc.?
In alignment with global goals – Tata Power’s
Commitment to UNSDGs (Reference Pg. 30, 31)
Our blueprint
(Reference Pg. 23)
The future of energy infrastructure – Manufactured Capital
(Reference Pg. 46, 49, 50)
build
Strengthening
sustainable societies – Social & Relationship Capital
(Reference Pg. 78, 79, 95)
Leading the New Energy World – Natural Capital
(Reference Pg. 101)
future – Our Strategy
communities
our
the
to
Business Responsibility ReportThe Tata Power Company Limited Integrated Annual Report 2019-20
3. Does the Company identify and assess potential
environmental risks?
Building a future ready business – Risk Management
(Reference Pg. 35)
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?
The future of energy infrastructure – Manufactured Capital
(Reference Pg. 47)
5. Has the Company undertaken any other initiatives on
– clean technology, energy efficiency, renewable
energy, etc.? Y/N.
Driving change through innovation – Intellectual Capital
(Reference Pg. 56)
6. Are the Emissions/Waste generated by the Company
within the permissible limits given by CPCB/SPCB for
the financial year being reported?
Leading the New Energy World – Natural Capital
(Reference Pg. 100)
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.
Leadership with a difference - Corporate Governance
(Reference Pg. 17)
Principle 7 (P7): Businesses, when engaged in influencing
public and regulatory policy, should do so in a responsible
manner
1.
Is your Company a member of any trade and chamber
or association? If Yes, Name only those major ones that
your business deals with:
A leading market disruptor in sustainable energy –
Business at a glance (Reference Pg. 10)
Annexure I – Our Industry Associations (Reference Pg. 128)
2. Have
you
through
advocated/lobbied
above
associations for the advancement or improvement
of public good? Yes/No; if yes specify the broad
areas (drop box: Governance and Administration,
Development
Economic
Policies, Energy security, Water, Food Security,
Sustainable Business Principles, Others)
Leadership with a difference - Corporate Governance
(Reference Pg. 17)
Reforms,
Inclusive
Principle 8 (P8): Businesses should support inclusive
growth and equitable development
1. Does the Company have specified programmes/
initiatives/projects in pursuit of the policy related to
Principle 8? If yes details thereof.
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 90)
2. Are the programmes/projects undertaken through
foundation/external NGO/
in-house
Government structures/any other organisation?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 82)
team/own
3. Have you done any impact assessment of your
initiative?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 83)
4. What
is your Company’s direct contribution to
community development projects-Amount in INR and
the details of the projects undertaken?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 82)
5. Have you taken steps to ensure that this community
is successfully adopted
development
by the community?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 83)
initiative
Principle 9 (P9): Businesses should engage with and
provide value to their customers and consumers in a
responsible manner
1. What percentage of customer complaints/consumer
cases are pending as on the end of financial year?
build
Strengthening
sustainable societies – Social & Relationship Capital
(Reference Pg. 72, 80)
communities
our
to
2. Does the Company display product information on
the product label, over and above what is mandated
as per local laws?
Strengthening our communities to build sustainable
societies – Social & Relationship Capital (Reference Pg. 73)
3.
Is there any case filed by any stakeholder against
the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
behavior during the last five years and pending as on
end of financial year?
Leadership with a difference - Corporate Governance
(Reference Pg. 17)
4. Did your Company carry out any consumer survey/
consumer satisfaction trends?
Strengthening
build
sustainable societies – Social & Relationship Capital
(Reference Pg. 72, 73)
communities
our
to
237
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Independent Auditor's Report
To the Members of
The Tata Power Company Limited
Report on the Audit of the Standalone Financial
Statements
Opinion
We have audited the accompanying standalone
Ind AS
financial statements of The Tata Power Company Limited (“the
Company”), which comprise the Balance Sheet as at March 31
2020, the Statement of Profit and Loss, including the statement
of Other Comprehensive Income, the Cash Flow Statement and
the Statement of Changes in Equity for the year then ended, and
notes to the standalone Ind AS financial statements, including
a summary of significant accounting policies and other
explanatory information.
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, 2020, its profit including
other comprehensive loss, 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
standalone Ind AS 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, 2020. 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.
238
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 How our audit addressed the key audit matter
Key audit matters
Revenue recognition and accrual of regulatory deferrals (as described in Note 19 and Note 30 of the standalone
financial statements)
In the regulated generation, transmission and 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 up.
• Considered the Company's accounting policies with
respect to accrual of regulatory deferrals and assessing
Ind AS 114 “Regulatory Deferral
compliance with
Accounts”
from
Ind AS
and
Contract with Customers”.
Our procedures included, amongst others, the following:
“Revenue
115
The Company recognizes revenue on the basis of tariff
invoiced to customers. As the Company is entitled to a fixed
return on equity, the Company recognizes accrual for the
shortage / excess compared to the entitled return on equity.
The Company has recognized ` 1,121.53 crore for generation
and transmission business and ` 258.32 crore for distribution
business as accruals as at March 31, 2020.
•
•
Accruals 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 accruals including interpretation of
tariff regulations. Further certain disallowances of claims have
been litigated by the Company before higher authorities.
Revenue recognition and accrual of regulatory deferrals is a
key audit matter considering the significance of the amount
and significant judgements involved in the determination.
Performed test of controls over revenue recognition and
accrual of regulatory deferrals through inspection of
evidence of performance of these controls.
Performed the tests of details including the following
key procedures:
•
the key assumptions used by
Evaluated
the
Company by comparing it with prior years, past
precedents and the opinion of management’s expert.
• Considered
the
independence, objectivity and
competence of management’s expert.
•
For tariff orders received by the Company, assessed
the impact recognized by the Company and for
matters litigated by the Company, also assessed the
management’s evaluation of the likely outcome of
the dispute based on past precedents and / or advice
of management’s expert.
• Assessed the disclosures
requirements of
Accounts”
and
Contract with Customers”.
in accordance with the
Ind AS 114 “Regulatory Deferral
from
Ind AS
“Revenue
115
Recognition and Measurement of Deferred Tax (as described in Note 35 of the standalone financial statements)
The Company has recognized Minimum Alternate Tax (MAT)
credit receivable of ` 437.51 crores as at March 31, 2020.
The Company also has recognized deferred tax assets of
` 379.97 crores on long term capital loss on sale of investments.
• Considered Company's accounting policies with respect
to recognition and measurement of tax balances in
accordance with Ind AS 12 “Income Taxes”
Our procedures included, amongst others, the following:
Further, pursuant to the Taxation Laws (Amendment) Act,
2019 (new tax regime), the Company has remeasured its
deferred tax balances expected to reverse after the likely
transition to new tax regime, at the rate specified in the new
tax regime and has recognized a net gain of `v275.00 crores.
•
•
Performed test of controls over recognition and
measurement of tax balances through inspection of
evidence of performance of these controls.
Performed the tests of details including the following
key procedures:
The recognition and measurement of MAT credit receivable
and deferred tax balances; is a key audit matter as the
recoverability of such credits within the allowed time frame in
the manner prescribed under tax regulations and estimation
of year of transition to the new tax regime 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.
•
tax
Involved
the
Company’s tax positions basis the tax law and also by
comparing it with prior years and past precedents.
specialists who evaluated
• Discussed the future business plans and financial
projections with the management.
• Assessed the management’s long term financial
projections and the key assumptions used in the
projections by comparing it to the approved business
plan, projections used for estimation of likely year
of transition to the new tax regime and projections
used for impairment assessment where applicable.
• Assessed the disclosures
in accordance with the
requirements of Ind AS 12 “Income Taxes”.
239
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm Impairment of assets (as described in Note 5 and Note 7 of the standalone financial statements)
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.
The Company is carrying impairment provision amounting
to ` 3,555.00 crores with respect to Mundra CGU (comprising
of investment in companies owning Mundra power plant,
coal mines and related infrastructure), ` 446.09 crores
for investment in company owning hydro power plant in
Georgia and ` 100.00 crores with respect to 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.
significance of
Impairment of assets is a key audit matter considering
the
term
estimation and the significant judgements involved in the
impairment assessment.
the carrying value,
long
Our procedures included, amongst others, the following:
• Considered the Company's accounting policies with
respect to impairment in accordance with Ind AS 36
“Impairment of assets”.
•
•
Performed test of controls over impairment process
evidence of performance
through inspection of
of these controls.
Performed the tests of details including the following
key procedures:
• Obtained
the management’s
impairment
assessment.
•
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.
• Obtained and evaluated the sensitivity analysis.
• Assessed the disclosures in accordance with Ind AS 36
“Impairment of assets”.
Going Concern Assessment (as described in Note 42.4.3 of the standalone financial statements)
Our procedures included, amongst others, the following:
• Obtained an understanding of the process and tested
the internal controls associated with the management’s
assessment of Going Concern assumption.
• Discussed with management and assessed
judgements and estimates used
the
in
assumptions,
assessment having
to past performance
and current emerging business trends affecting the
business and industry.
regards
• Assessed the Company’s ability to refinance
its
obligation based on the past trends, credit ratings,
ability to generate cash flows and access to capital.
• Assessed the adequacy of the disclosures
in the
standalone Ind AS financial statements.
The Company has current liabilities of ` 10,550.18 crores and
current assets of ` 2,989.86 crores as at March 31, 2020.
Current liabilities exceeds current assets as at the year end.
Given the nature of its business i.e. contracted long term
power supply agreements and a significant composition of
cost plus contracts leading to significant stability of cashflows
and profitability, management is confident of refinancing
and consider the liquidity risk as low and accordingly, the
Company uses significant short term borrowings to reduce its
borrowing costs.
Management has made an assessment of the Company’s
ability to continue as a Going Concern as required by Ind AS
1 Presentation of Financial Statements considering all the
available information and has concluded that the going
concern basis of accounting is appropriate.
Going Concern assessment has been identified as a key audit
matter considering the significant judgements and estimates
involved
its dependence upon
management’s ability to complete the planned divestments,
raising long term capital and / or successful refinancing of
certain current financial obligations.
in the assessment and
240
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20
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 standalone Ind AS 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
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 loss, 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.
Auditor’s Responsibilities for the Audit of the
Standalone 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.
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 standalone 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 Company to cease to continue as a going concern.
Those Board of Directors are also responsible for overseeing the
Company’s financial reporting process.
•
Evaluate the overall presentation, structure and content of
the standalone Ind AS financial statements, including the
241
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm 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, 2020 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
As required by the Companies (Auditor’s Report) Order,
1.
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) 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 the Statement of 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,
standalone
Ind AS financial statements comply with the
Accounting Standards specified under Section 133
the aforesaid
(c)
(d)
242
(e)
(f)
(g)
(h)
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, 2020 taken
on record by the Board of Directors, none of the
directors is disqualified as on March 31, 2020 from
being appointed as a director in terms of Section 164
(2) of the Act;
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;
In our opinion, the managerial remuneration for
the year ended March 31, 2020 has been paid
/ provided by the Company to its directors in
accordance with the provisions of section 197 read
with Schedule V to the Act;
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.
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;
ii.
The Company has made provision, as required
under the applicable
law or accounting
standards, for material foreseeable losses,
if any, on
including
long-term contracts
derivative contracts – Refer Note 18 to the
standalone financial statements;
iii.
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
Mumbai
Date: May 19, 2020
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 20112773AAAACW7931
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 Independent Auditor’s
Annexure 1 to the
in paragraph 1 under
Report referred to
the heading
‘Report on Other Legal and
Regulatory Requirements’ of our report of even
date on the standalone financial statements of
The Tata Power Company Limited
(iii)
(a)
The Company has granted
loans to thirteen
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.
(i)
(a)
The Company has maintained proper records
showing full particulars,
including quantitative
details and situation of fixed assets.
(iii)
(i)
(i)
(b) 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
such
material discrepancies were noticed on
verification.
(iii)
(c)
(c) According to the information and explanations
given by the management, the title deeds of
in property,
immovable properties
plant and equipment are held in the name of the
Company, except for:
included
(iv)
aggregating
to
immovable properties
` 0.88 crore acquired during merger of
Chemical Terminal Trombay Limited in the
earlier year for which registration of title of
deeds is in progress;
(b) The Company has granted
loans to thirteen
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.
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.
immovable properties
to
` 8.01 crore acquired in earlier years for which
registration of title of deeds is in progress;
aggregating
(v)
immovable properties aggregating to ` 27.57
crore for which the title deed is in dispute and
pending resolution as at March 31, 2020;
The Company has not accepted any deposits within
the meaning of Sections 73 to 76 of the Companies
Act, 2013 and the Companies (Acceptance of
Deposits) Rules, 2014 (as amended). Accordingly,
the provisions of clause 3(v) of the Order are
not applicable.
a.
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 22
of standalone financials statements. The same has not been
independently confirmed by the bank and hence we are unable
to comment on the same.
(vi)
(ii)
The management has
conducted physical
verification of inventory at reasonable intervals
during the year and no material discrepancies were
noticed on such physical verification.
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.
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.
243
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm
(vii)
According to the information and explanations
given to us in respect of statutory dues:
(a) The Company is regular in depositing with
appropriate authorities undisputed statutory
dues including provident fund, employees’
state
income-tax, goods and
service tax, duty of custom, cess and other
statutory dues applicable to it.
insurance,
(b) 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.
(c) 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:
Name
of Statute
Nature
of dues
(` Crores)
The Customs Act,
1962
Customs Duty
34.43
Period to
which
amount
relates
2011-12 and
2012-13
2004-05 to
2005-06
2004-05 to
2005-06 and
2009-10
1993-94 to
1995-96
2009-10
3.60
1.37
0.81
1.13
8.99
1.08
100.19
50.19
2008-09
2009-10
2011-12 –
2014-15
2016-17
Forum where
the dispute is
pending
The Customs
Excise and
Service Tax
Appellate
Tribunal
(CESTAT)
CESTAT
Principal
Commissioner
of Customs
CESTAT
Chairman,
Maharashtra
Pollution
Control
Board (MPCB)
Income Tax
Appellate
Tribunal
Commissioner
of Income Tax
(Appeals)
High Court
CESTAT
Joint
Commissioner
(Appeals)
The Central Excise
Act, 1944
The Water
(Prevention &
Control of
Pollution) Cess
Act, 1977
Income Tax
Act, 1961
Excise Duty
Cess
Income Tax
Tax deducted
at source
The Finance
Act, 1994
Service Tax
375.29
5.86
0.25
July 2012 to
June 2017
2011-12 to
2014-15
2007-08
244
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 (viii) 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.
(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 standalone Ind AS financial statements,
as required by the applicable accounting standards.
(ix)
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.
(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.
(x) Based upon the audit procedures performed for the
purpose of reporting the true and fair view of the
standalone Ind AS 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.
(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.
(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
Order are not applicable to the Company and hence not
commented upon.
the provisions of clause 3(xii) of
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 20112773AAAACW7931
Mumbai
Date: May 19, 2020
245
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm Annexure 2 to the Independent Auditor’s Report
of even date on the Standalone 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, as
amended (“the Act”)
We have audited the internal financial controls over financial
reporting of The Tata Power Company Limited (“the Company”)
as of March 31, 2020 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 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 standalone Ind AS 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 Act 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 Ind AS 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
246
over financial reporting with reference to these standalone
Ind AS 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 Ind AS 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 standalone Ind AS 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 Ind AS financial statements.
to
these
Meaning of Internal Financial Controls Over Financial
Reporting With Reference
Standalone
Financial Statements
A company's internal financial control over financial reporting
with reference to these standalone Ind AS financial statements
is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of
standalone Ind AS 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 Ind AS 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 standalone Ind AS 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 standalone Ind AS 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
Ind AS financial statements, including the possibility of collusion
improper management override of controls, material
or
misstatements due to error or fraud may occur and not be
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 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
Ind AS 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 Ind AS financial statements
and such internal financial controls over financial reporting
with reference to these standalone Ind AS financial statements
were operating effectively as at March 31, 2020, 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 issued by the Institute of
Chartered Accountants of India.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 20112773AAAACW7931
Mumbai
Date: May 19, 2020
247
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm Standalone Balance Sheet
as at 31st March, 2020
ASSETS
Non-current Assets
(a) Property, Plant and Equipment
(b) Capital Work-in-Progress
(c)
Intangible Assets
(d) Financial Assets
(i)
Investments
(ii)
Trade Receivables
(iii) Loans
(iv) Finance Lease Receivables
(v)
Other Financial Assets
(e) Non-current Tax Assets (Net)
(f)
Other Non-current Assets
Total Non-current Assets
Current Assets
(a)
Inventories
(b) Financial Assets
(i)
Investments
(ii)
Trade Receivables
(iii) Unbilled Revenue
(iv) Cash and Cash Equivalents
(v) Bank Balances other than (iv) above
(vi) Loans
(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
248
Notes
Page
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
5
6
7
8
9
10
11
12
13
262
265
267
272
273
275
276
277
277
7,974.07
7,545.96
402.87
62.22
368.10
83.89
21,327.20
21,270.77
Nil
42.10
553.03
222.77
135.00
1,009.64
185.76
51.35
554.27
2.89
68.65
977.10
31,728.90
31,108.74
14
279
635.01
579.51
15
8
16
17
9
10
11
13
279
272
280
281
273
275
276
277
18a.
281
20.00
1,108.68
83.41
158.54
20.40
550.09
31.89
235.58
146.26
42.00
1,256.44
41.56
75.94
19.85
119.20
37.58
96.06
952.11
2,989.86
2,639.40
3,220.25
2,806.59
37,358.16
37,135.58
19
284
258.32
999.00
37,616.48
38,134.58
20a.
20b.
21
285
286
287
270.50
1,500.00
270.50
1,500.00
13,491.47
13,919.10
15,261.97
15,689.60
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2019-20
Standalone Balance Sheet
as at 31st March, 2020 (Contd.)
Liabilities
Non-current Liabilities
(a) Financial Liabilities
(i)
Borrowings
(ii)
Lease Liabilities
(iii) Trade Payables
small enterprises
(iv) Other Financial Liabilities
(b)
Deferred Tax Liabilities (Net)
(c)
Provisions
(d)
Other Non-current Liabilities
Total Non-current Liabilities
Current Liabilities
(a) Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(a) Total outstanding dues of micro enterprises and small enterprises
36
314
(b) Total outstanding dues of trade payables other than micro enterprises and
Notes
Page
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
22
23
289
292
9,825.33
237.03
Nil
Nil
14.60
307.25
222.46
161.34
24
25
26
27
293
293
294
302
8,749.72
Nil
Nil
22.75
42.76
583.49
195.55
183.54
10,768.01
9,777.81
28
23
302
292
6,212.31
41.82
6,731.80
Nil
(a) Total outstanding dues of micro enterprises and small enterprises
36
314
7.72
3.96
(b) Total outstanding dues of trade payables other than micro enterprises and
small enterprises
(iv) Other Financial Liabilities
(b) Current Tax Liabilities (Net)
(c) Provisions
(d) Other Current Liabilities
Total Current Liabilities
24
29
26
27
293
302
294
302
994.15
2,621.62
107.67
62.02
502.87
1,098.18
2,895.43
107.67
14.74
849.12
10,550.18
11,700.90
Liabilities directly associated with Assets Classified as Held For Sale
18b.
282
1,036.32
966.27
Total Liabilities before Regulatory Deferral Account
Regulatory Deferral Account - Liability
TOTAL EQUITY AND LIABILITIES
22,354.51
22,444.98
19
284
Nil
Nil
37,616.48
38,134.58
See accompanying notes to the Standalone Financial Statements
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
BANMALI AGRAWALA
Director
ICAI Firm Registration No.324982E/E300003
DIN 01785164
DIN 00120029
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020.
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020.
249
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Standalone Statement of Profit and Loss
for the year ended 31st March, 2020
Notes
Page For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
I
II
III
IV
Revenue from Operations
Other Income
Total Income
Expenses
Cost of Power Purchased
Cost of Fuel
Transmission Charges
Employee Benefits Expense (Net)
Finance Costs
Depreciation and Amortisation Expenses
Other Expenses
Total Expenses
V
Profit/(Loss) Before Movement in Regulatory Deferral Balance,
Exceptional Items and Tax
Add/(Less): Net Movement in Regulatory Deferral Balances
Add/(Less): Net Movement in Regulatory Deferral Balances in respect of earlier years
Add/(Less): Deferred Tax Recoverable/(Payable)
VI Profit/(Loss) Before Exceptional Items and Tax
Add/(Less): Exceptional Items
Reversal of Impairment of Non-current Investments and related obligation
Standby Litigation
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime (Net)
Provision for Contingencies
Gain on Sale of Investment in Associates
VII Profit/(Loss) Before Tax
VIII Tax Expense/(Credit)
Current Tax
Deferred Tax
Deferred Tax relating to earlier years
Remeasurement of Deferred Tax on account of New Tax Regime (Net)
30
31
303
307
39b.
316
32
33
5 & 6
34
19
19
3.11.3
7
39a.
35
39b.
18a.
35
35
35
35
308
308
262
309
284
284
261
267
316
310
316
281
310
310
310
310
IX Profit/(Loss) for the Year from Continuing Operations
X
Profit/(Loss) before tax from Discontinued Operations
18c.
282
7,726.39
582.62
8,309.01
457.59
2,765.61
214.00
610.71
8,255.25
516.35
8,771.60
457.02
3,168.27
248.23
637.57
1,510.38
1,500.35
685.75
756.69
632.70
801.87
7,000.73
7,446.01
1,308.28
(792.24)
(21.32)
162.16
(651.40)
656.88
235.00
(276.35)
(265.00)
Nil
Nil
(306.35)
350.53
18.61
73.08
(24.51)
(275.00)
(207.82)
558.35
(81.64)
1,325.59
(519.03)
274.26
98.19
(146.58)
1,179.01
Nil
Nil
Nil
(45.00)
1,212.99
1,167.99
2,347.00
110.88
331.58
10.00
Nil
452.46
1,894.54
(191.82)
Impairment Loss related to Discontinued Operations on remeasurement to
Fair Value
18c.
282
(361.00)
Nil
XI
Tax Expense/(Credit) of Discontinued Operations
Current Tax
Deferred Tax
Tax Expense/(Credit) of Discontinued Operations
XII Profit/(Loss) for the Year from Discontinued Operations
18c.
282
XIII Profit/(Loss) for the Year
Nil
(32.41)
(32.41)
(410.23)
148.12
(71.92)
5.94
(65.98)
(125.84)
1,768.70
250
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2019-20
Standalone Statement of Profit and Loss
for the year ended 31st March, 2020 (Contd.)
Notes
Page For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
XIV Other Comprehensive Income/(Expenses) - Continuing Operations
Add/(Less): (i)
Items that will not be reclassified to profit or loss
(a)
Remeasurement of the Defined Benefit Plans
26
294
(b)
Equity Instruments classified at FVTOCI
(c)
Gain on sale of Investment classified at FVTOCI
(d)
Assets Classified as Held For Sale
- 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
310
310
XV Other Comprehensive Income/(Expenses) - Discontinued Operations
Add/(Less): (i)
Items that will not be reclassified to profit or loss
26
294
(ii)
Income tax relating to items that will not be reclassified to profit or loss
Other Comprehensive Income/(Expenses) For The Year (Net of Tax)
XVI Total Comprehensive Income for the Year (XIII + XIV+XV)
XVII Basic and Diluted Earnings Per Equity Share (of J 1/- each) (J)
40
317
(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
See accompanying notes to the Standalone Financial Statements
(51.79)
(3.50)
Nil
(15.84)
0.77
17.40
(52.96)
0.20
Nil
0.20
(52.76)
95.36
3.23
1.44
(1.52)
(0.08)
(20.00)
0.17
0.01
(31.05)
6.99
(0.02)
(43.90)
(1.14)
0.40
(0.74)
(44.64)
1,724.06
6.72
6.36
(0.46)
5.90
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
BANMALI AGRAWALA
Director
ICAI Firm Registration No.324982E/E300003
DIN 01785164
DIN 00120029
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020.
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020.
251
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Standalone Statement of Cash Flows
for the year ended 31st March, 2020
A. Cash Flow from Operating Activities
Profit/(loss) before tax from continuing operations
Profit/(loss) before tax from discontinued operations
Adjustments to reconcile profit before tax to net cash flows:
Depreciation and amortisation expense
Interest income
Interest on income-tax refund
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 fair value
through profit and loss
(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 Statutory Consumer Reserve
Bad debts
Allowance for doubtful debts and advances (Net)
Gain on sale of investment in associates
685.75
(107.44)
(10.96)
(6.61)
(368.81)
1,546.53
(0.35)
(13.41)
(9.06)
Nil
(60.63)
(7.99)
17.00
6.05
2.85
Nil
Reversal of impairment of non-current investments and related obligation
(235.00)
Impairment Loss on Remeasurement to Fair Value related to discontinued
operations
Effect of exchange fluctuation (Net)
Working Capital adjustments:
Adjustments 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
252
361.00
(2.44)
(34.65)
(10.04)
6.93
(2.39)
9.25
141.11
123.64
(26.24)
1.18
(41.15)
740.68
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
350.53
(442.64)
2,347.00
(191.82)
632.70
(84.91)
Nil
(6.34)
(383.91)
1,536.68
(10.81)
(6.29)
(0.88)
2.64
(20.95)
(7.46)
16.00
Nil
19.11
(1,212.99)
Nil
Nil
4.54
1,796.48
1,704.37
477.13
2,632.31
(107.14)
(251.20)
17.18
(0.41)
4.09
(646.61)
270.34
66.23
(0.40)
1.10
796.37
908.32
2,612.69
149.55
2,781.86
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2019-20 Standalone Statement of Cash Flows
for the year ended 31st March, 2020 (Contd.)
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
Cash flow from/(used in) operations
Income tax paid (Net of refund received)
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
(including property, plant and equipment classified as held for sale)
Purchase of non current investments
Proceeds from sale of non-current investments
(including investments classified as held for sale)
(Purchase)/proceeds from/ to sale of current investments (Net)
Interest received
Delayed payment charges received
Loans given
Loans repaid
Dividend received
Guarantee commission received
Bank balance not considered as cash and cash equivalents
Net Cash Flow from/(used in) Investing Activities
B
C. Cash Flow from Financing Activities
Proceeds from non-current borrowings
Repayment of non-current borrowings
Proceeds from current borrowings
Repayment of current borrowings
Interest and other borrowing costs
Dividends paid
Distribution on unsecured perpetual securities
Increase in capital/service line contributions
Payments of Lease liability (including interest)
Net Cash Flow from/(used in) Financing Activities
C
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)
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
(277.60)
139.56
0.70
(12.66)
25.03
(80.47)
(24.05)
Nil
(34.77)
(382.37)
(66.98)
(40.72)
24.62
(13.37)
1.38
(485.00)
(229.49)
2,383.20
(74.40)
2,308.80
(705.05)
26.53
(284.11)
271.28
35.41
107.83
6.61
(3,259.41)
2,824.04
449.97
56.16
(0.25)
(470.99)
3,403.59
(2,568.35)
30,776.85
(31,295.20)
(1,524.17)
(351.99)
(171.00)
7.03
(29.34)
(1,752.58)
85.23
79.86
165.09
(997.21)
1,784.65
(101.31)
1,683.34
(522.39)
32.35
(3,450.99)
2,412.77
16.29
122.36
6.34
(2,361.61)
2,623.97
548.55
18.76
(2.95)
(556.55)
3,337.09
(4,729.41)
22,729.91
(20,231.28)
(1,591.08)
(351.99)
(171.00)
11.49
Nil
(996.27)
130.52
(50.66)
79.86
253
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Standalone Statement of Cash Flows
for the year ended 31st March, 2020 (Contd.)
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 related to Discontinued Operations
Total of Cash and Cash Equivalents
See accompanying notes to the Standalone Financial Statements
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
158.54
(1.05)
157.49
7.62
(0.02)
7.60
165.09
75.94
(2.19)
73.75
6.13
(0.02)
6.11
79.86
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
BANMALI AGRAWALA
Director
ICAI Firm Registration No.324982E/E300003
DIN 01785164
DIN 00120029
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020.
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020.
254
Standalone Ind AS Statement of Profit and Lossfor the year ended 31st March, 2020The Tata Power Company Limited Integrated Annual Report 2019-20
Standalone Statement of Change in Equity
for the year ended 31st March, 2020
e
r
o
r
c
D
t
n
u
o
m
A
.
0
5
0
7
2
l
i
N
.
0
5
0
7
2
l
i
N
.
0
5
0
7
2
.
0
5
0
7
2
e
r
o
r
c
D
t
n
u
o
m
A
.
0
0
0
0
5
1
,
l
i
N
.
0
0
0
0
5
1
,
.
0
0
0
0
5
1
,
l
i
N
.
0
0
0
0
5
1
,
e
r
o
r
c
D
l
a
t
o
T
.
3
0
8
1
7
2
1
,
.
0
7
8
6
7
1
,
)
4
6
4
4
(
.
.
6
0
4
2
7
1
,
l
i
N
l
i
N
.
)
9
9
1
5
3
(
.
)
0
0
1
7
1
(
.
0
1
9
1
9
3
1
,
.
0
1
9
1
9
3
1
,
.
2
1
8
4
1
)
6
7
2
5
(
.
6
3
5
9
.
.
)
9
9
1
5
3
(
l
i
N
l
i
N
.
)
0
0
1
7
1
(
.
7
4
1
9
4
3
1
,
s
e
r
a
h
S
f
o
.
o
N
,
0
1
5
3
7
7
4
0
7
2
,
,
l
i
N
,
0
1
5
3
7
7
4
0
7
2
,
,
,
0
1
5
3
7
7
4
0
7
2
,
,
l
i
N
,
,
0
1
5
3
7
7
4
0
7
2
,
0
0
0
5
1
,
l
i
N
0
0
0
5
1
,
l
i
N
0
0
0
5
1
,
0
0
0
5
1
,
s
e
i
t
i
r
u
c
e
S
f
o
.
o
N
e
m
o
c
n
I
r
e
h
t
O
f
o
m
e
t
I
e
v
i
s
n
e
h
e
r
p
m
o
C
s
u
l
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
e
m
o
c
n
I
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
t
n
e
m
u
r
t
s
n
I
y
t
i
u
q
E
d
e
n
s
g
n
i
i
a
t
e
R
n
r
a
E
e
v
r
e
s
e
R
y
r
o
t
u
t
a
t
S
l
a
t
i
p
a
C
e
v
r
e
s
e
R
l
a
t
i
p
a
C
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
i
s
e
i
t
i
r
u
c
e
S
m
u
m
e
r
P
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
)
1
2
e
t
o
N
r
e
f
e
R
(
y
t
i
u
q
E
r
e
h
t
O
.
C
8
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
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
9
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
l
a
t
i
p
a
C
e
r
a
h
S
y
t
i
u
q
E
.
A
8
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
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
9
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
l
a
r
e
n
e
G
e
v
r
e
s
e
R
n
o
i
t
p
i
r
c
s
e
D
A
L
A
W
A
R
G
A
I
L
A
M
N
A
B
9
2
0
0
2
1
0
0
N
D
I
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
I
M
.
M
.
H
,
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
r
o
t
c
e
r
i
D
g
n
i
g
a
n
a
M
&
O
E
C
A
H
N
I
S
R
E
E
V
A
R
P
4
6
1
5
8
7
1
0
N
D
I
M
A
Y
N
A
M
A
R
B
U
S
H
S
E
M
A
R
r
e
c
ffi
O
l
a
i
c
n
a
n
i
F
f
e
i
h
C
.
0
2
0
2
,
y
a
M
h
t
9
1
,
i
a
b
m
u
M
.
)
2
1
4
7
3
(
l
i
N
)
9
8
0
3
(
.
)
9
8
0
3
(
.
l
i
N
l
i
N
l
i
N
.
9
4
5
3
7
.
8
4
0
3
3
l
i
N
.
8
4
0
3
3
)
4
3
9
1
(
.
.
)
4
3
9
1
(
l
i
N
l
i
N
.
)
5
2
6
5
3
(
l
i
N
)
1
1
5
4
(
.
.
9
9
8
7
8
1
,
.
0
7
8
6
7
1
,
)
5
7
3
1
(
.
.
5
9
4
5
7
1
,
.
6
6
8
7
5
.
)
9
9
1
5
3
(
.
)
9
4
5
3
7
(
.
)
0
0
1
7
1
(
.
2
1
4
5
9
2
,
.
2
1
4
5
9
2
,
.
2
1
8
4
1
)
2
4
3
3
(
.
.
0
7
4
1
1
.
)
9
9
1
5
3
(
.
0
0
5
2
1
.
5
2
6
5
3
.
)
0
0
1
7
1
(
.
8
0
7
2
0
3
,
.
8
0
0
6
6
6
6
1
6
.
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
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
6
1
6
.
6
6
1
6
.
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
5
8
1
.
5
8
1
.
5
8
1
.
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
6
6
1
6
.
5
8
1
.
.
1
6
0
0
0
1
,
.
8
9
4
3
6
5
,
.
8
9
3
5
8
3
,
l
i
N
l
i
N
l
i
N
l
i
N
.
)
6
6
8
7
5
(
l
i
N
l
i
N
.
5
9
1
2
4
.
5
9
1
2
4
l
i
N
l
i
N
l
i
N
l
i
N
.
)
0
0
5
2
1
(
l
i
N
l
i
N
.
5
9
6
9
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
.
8
9
4
3
6
5
,
.
8
9
3
5
8
3
,
.
8
9
4
3
6
5
,
.
8
9
3
5
8
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
l
i
N
l
i
N
l
i
N
l
i
N
.
8
9
4
3
6
5
,
.
8
9
3
5
8
3
,
)
x
a
T
f
o
t
e
N
(
r
a
e
y
e
h
t
r
o
f
)
s
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
8
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
)
s
s
o
L
(
/
t
fi
o
r
P
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
)
x
a
T
f
o
t
e
N
(
r
a
e
y
e
h
t
r
o
f
)
s
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
9
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
)
s
s
o
L
(
/
t
fi
o
r
P
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
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
)
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
l
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
i
i
r
e
f
s
n
a
r
T
s
t
n
e
m
e
t
a
t
S
l
a
i
c
n
a
n
i
F
e
n
o
l
a
d
n
a
t
S
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
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
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
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
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
)
m
o
r
f
(
/
o
t
r
e
f
s
n
a
r
T
l
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
i
i
r
e
f
s
n
a
r
T
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
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
L
A
W
R
A
G
A
K
E
H
S
I
H
B
A
r
e
p
r
e
n
t
r
a
P
3
7
7
2
1
1
.
i
o
N
p
h
s
r
e
b
m
e
M
.
0
2
0
2
,
y
a
M
h
t
9
1
,
i
a
b
m
u
M
255
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Notes to the Standalone 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, VII of 1913. The registered office of the Company is located at Bombay House, 24, Homi Mody
Street, Mumbai 400001, India. The Company is listed on BSE Limited (BSE) and National Stock Exchange of India Limited
(NSE). 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 2,304 MW in India and a presence in all the segments of the power
sector viz. Fuel and Logistics, Generation (thermal, hydro, solar and wind), Transmission and Distribution.
2.
2.1
2.2
Significant Accounting Policies:
Statement of compliance
The Standalone Ind AS 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).
Basis of preparation and presentation
The Standalone Ind AS 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 26 for accounting policy)
Historical cost is the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire assets at
the time of their acquisition or the amount of proceeds received in exchange for the obligation, or at the amounts of cash or
cash equivalents expected to be paid to satisfy the liability in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
3.
3.1
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
256
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
3.
Other Significant Accounting Policies (Contd.)
- 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 Company 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 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.
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 ‘Equity Instruments through Other
Comprehensive Income’. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.
257
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Other Significant Accounting Policies (Contd.)
3.
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.
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.
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.
258
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
Other Significant Accounting Policies (Contd.)
3.
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 - ‘Financial Instruments’ 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.
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 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. A corresponding amount is recognised directly in equity.
3.11 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, 2019. The nature and the impact of each amendment is described below:
3.11.1 Ind AS 116 ‘Leases’
Ind AS 116 - ‘Leases’ (Ind AS 116) 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. The Company has applied Ind AS 116 with a date of initial application of
1st April, 2019 using modified retrospective approach, under which the cumulative effect of initial application is recognized
as at 1st April, 2019.
Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. As a lessee, the Company previously classified
leases as operating or finance lease based on its assessment of whether the lease transferred significantly all of the risk and
259
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
3.
Other Significant Accounting Policies (Contd.)
rewards incidental to the ownership of the underlying asset of the Company. Under Ind AS 116, the Company recognizes the
right-of-use assets and lease liabilities as stated in the Note 5B and 23.
On adoption of Ind AS 116, the Company has recognized ‘Right-of-use’ assets amounting to ₹ 406.99 crore (including
reclassification of lease prepayment from other assets amounting to ₹ 206.00 crore) and ‘Lease liabilities’ amounting to ₹
225.00 crore (including reclassification of lease liability from trade payables amounting to ₹ 24.00 crore) as at 1st April, 2019.
There is no impact on retained earnings as at 1st April, 2019. The Company has applied Ind AS 116 only to the contracts that
were previously identified as leases. As a practical expedient, contracts previously identified as lease under Ind AS 17 has not
reassessed as to whether a contract is, or contains, a lease under Ind AS 116.
The Company has used the following practical expedients when applying Ind AS 116 to leases previously classified as
operating leases under Ind AS 17:
- Applied a single discount rate to a portfolio of leases with similar characteristics.
- Relied on its assessment of whether leases are onerous immediately before the date of initial application.
- Applied the exemption not to recognize right-of-use asset and liabilities for leases with remaining lease term of 12 months
or less.
- Excluded initial direct costs from measuring the right-of-use asset at the date of application.
- Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
The lease liabilities as at 1st April, 2019 can be reconciled to the operating lease commitments as of 31st March, 2019 as follows:
Particulars
Operating lease commitments (including cancellable and non-cancellable leases) as at 31st March, 2019.
Less: Commitments relating to short-term leases
Less: Commitments relating to leases of low-value assets
Net Operating lease commitments as at 31st March, 2019.
Weighted average incremental borrowing rate as at 1st April, 2019
Lease liabilities as at 1st April, 2019
Accounting Policy for Leases till 31st March, 2019
Leasing arrangement
E crore
462.20
(29.07)
(0.38)
432.75
9.15%
225.00
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.
3.11.2 Ind AS 12 Income Taxes
Pursuant to the amendment in Ind AS 12 - ‘Income Taxes’ effective from 1st April, 2019, the Company has recognised the
income tax consequence on interest on perpetual securities in the profit and loss which was earlier recognized directly in
other equity and has restated the figures for previous year presented. Accordingly, the profit after tax for the year ended
31st March, 2019 is higher by C 60.12 crore as compared to previous year Standalone Ind AS financial statements. There is no
impact on the “Other Equity” of the Company.
260
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
Other Significant Accounting Policies (Contd.)
3.
3.11.3 Deferred Tax Recoverable / Payable
In the regulated operations of the Company where tariff recovered from consumers is determined on cost plus return
on equity, the Income tax cost is pass through cost and accordingly the Company recognizes Deferred Tax Recoverable /
Payable against any Deferred Tax Expense / Income. Until previous year, the same was presented under ‘Tax Expenses’ in the
financial statements. During the year, pursuant to an opinion by the Expert Advisory Committee of The Institute of Chartered
Accountants of India, the same has now been included in ‘Revenue from Operations’ in case of Generation and Transmission
business and disclosed as ‘Deferred Tax Recoverable / (Payable)’ as Net Movement in Regulatory Deferral Balances in case of
Distribution business. There is no impact in the Other Equity and Profit / (Loss) on account of such change in presentation.
Impact of this restatement in the comparative year is as follows:
Particulars
Revenue from Operations - Increase / (Decrease)
Movement in Net Regulatory Deferral Balances - Income / (Expense)
Tax (Expense) / Credit
Basic and diluted EPS from continuing operations before movement in regulatory deferral balances - Increase /
(Decrease)
E crore
For the year ended
31st March, 2019
322.42
98.19
420.61
(0.23)
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 Standalone Ind AS financial statements.
The areas involving critical estimates or judgements are:
Estimations used for impairment assessment of property, plant and equipment of certain cash generating units (CGU) -
Note 5
Estimations used for fair value of unquoted securities and impairment assessment of investments - Note 7
Estimation of defined benefit obligation - Note 26
Estimations used for determination of tax expenses and tax balances (including Minimum Alternate Tax credit) - Note 35
Estimates related to accrual of regulatory deferrals and revenue recognition - Note 19 and 30
Estimates and judgements related to the assessment of liquidity risk - Note 42.4.3
Judgement to estimate the amount of provision required or to determine required disclosure related to litigation and claims
against the Company - Note 38
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.
261
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
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.
The accounting policy related to Right of Use Assets has been disclosed in Note 23.
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 Company covered under Part B
of Schedule II of the Companies Act, 2013, has been provided on the straight line method at the rates specified in tariff
regulation notified by respective state electricity regulatory commission.
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. The Company, based on technical assessment
made by technical expert and management estimate, depreciates certain items of building, plant and equipment 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 Assets
Leasehold Lands
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.
Helicopters
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
Derecognition
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.
262
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
5.
Property, Plant and Equipment (Contd.)
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.
Impairment losses of tangible and intangible assets are recognised in the statement of profit and loss.
263
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
.
7
4
5
0
9
4
1
,
.
9
9
7
7
6
)
8
5
5
6
(
.
0
6
0
3
.
)
5
6
0
3
(
.
.
3
8
7
1
5
5
1
,
.
8
4
8
0
6
)
7
7
5
5
(
.
7
6
5
2
.
)
3
5
1
(
.
.
6
3
6
3
9
7
,
.
7
4
1
8
5
7
,
.
1
5
9
5
3
7
,
l
i
N
l
i
N
l
i
N
1
0
7
3
.
)
1
7
1
(
.
0
3
5
3
.
l
i
N
l
i
N
1
0
0
.
5
2
3
3
.
)
3
5
1
(
.
3
7
1
3
.
4
9
0
.
4
4
2
4
.
)
9
1
7
(
.
l
i
N
l
i
N
9
1
6
3
.
7
6
4
.
1
8
9
2
.
)
8
0
6
(
.
l
i
N
l
i
N
0
4
8
2
.
4
8
0
.
9
0
7
2
.
)
5
0
2
(
.
1
0
0
.
)
1
0
0
(
.
8
8
5
2
.
2
5
1
.
9
9
2
2
.
)
4
9
1
(
.
l
i
N
1
0
0
.
8
5
2
2
.
7
5
3
.
9
7
7
.
0
3
3
.
7
9
1
.
7
4
5
6
.
)
6
6
5
(
.
l
i
N
1
0
0
.
9
7
1
6
.
0
2
4
.
3
5
1
4
.
)
4
2
5
(
.
l
i
N
1
0
0
.
0
5
0
4
.
9
2
1
2
.
.
8
1
3
6
1
3
,
.
4
1
3
8
5
9
,
)
0
1
0
(
.
l
i
N
)
9
6
0
(
.
.
7
5
1
5
2
)
2
0
9
4
(
.
3
2
9
2
.
)
2
0
0
(
.
.
5
4
3
3
3
.
6
9
3
1
4
3
,
.
8
7
6
9
8
9
,
.
0
7
8
9
1
1
,
.
8
0
7
9
2
5
,
l
i
N
l
i
N
)
8
0
0
(
.
.
9
7
7
3
1
.
6
1
4
0
4
)
6
1
1
4
(
.
8
6
4
2
.
l
i
N
.
1
4
6
3
3
1
,
.
6
7
4
8
6
5
,
.
5
5
7
7
0
2
,
.
2
0
2
1
2
4
,
3
5
0
.
1
5
6
4
.
)
5
0
0
(
.
l
i
N
)
3
2
0
(
.
6
7
6
4
.
0
3
1
.
9
4
3
2
.
)
5
0
0
(
.
l
i
N
l
i
N
4
7
4
2
.
l
i
N
l
i
N
l
i
N
l
i
N
.
0
1
6
0
1
)
3
9
0
(
.
4
3
0
.
)
9
7
0
(
.
1
4
4
2
.
.
5
3
7
1
2
)
8
5
0
(
.
7
9
0
.
)
5
6
0
(
.
4
2
4
6
.
.
9
0
7
3
9
.
0
1
6
0
1
.
8
3
0
4
2
.
7
0
1
0
0
1
,
l
i
N
l
i
N
l
i
N
0
6
5
.
1
0
6
5
.
4
6
6
.
9
9
5
9
.
)
1
9
0
(
.
l
i
N
2
1
0
.
)
1
3
0
(
.
l
i
N
5
8
0
.
2
2
0
3
.
.
0
8
6
6
2
l
i
N
l
i
N
4
0
0
.
.
6
4
6
3
5
)
3
1
0
(
.
.
7
3
6
3
5
l
i
N
l
i
N
l
i
N
7
3
2
1
.
.
6
8
3
9
2
.
1
6
1
6
.
4
8
1
0
1
.
6
5
7
9
2
.
3
2
6
0
3
2
0
2
2
.
9
4
4
4
.
.
4
5
8
3
1
.
1
5
3
0
7
.
4
1
0
3
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
4
0
0
.
.
3
6
3
4
1
)
2
4
6
2
(
.
.
5
2
7
1
1
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
5
2
7
1
1
e
r
o
r
c
E
l
a
t
o
T
s
r
e
t
p
o
c
i
l
e
H
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
s
e
g
r
a
B
,
s
e
l
c
i
h
e
V
,
s
e
h
c
n
u
a
L
t
n
e
m
p
u
q
E
i
d
n
a
s
e
r
u
t
x
i
F
d
n
a
s
e
n
i
l
e
l
b
a
c
k
r
o
w
t
e
n
d
n
a
t
n
a
l
P
t
n
e
m
p
u
q
E
i
,
s
d
a
o
R
y
a
w
l
i
a
R
,
s
g
n
d
i
s
i
s
g
n
i
s
s
o
r
c
y
t
t
e
J
l
a
o
C
@
s
r
e
h
t
O
t
n
a
l
P
-
s
g
n
d
i
l
i
u
B
-
s
g
n
d
i
l
i
u
B
s
k
r
o
W
c
i
l
u
a
r
d
y
H
d
n
a
L
d
n
a
L
l
d
o
h
e
s
a
e
L
l
d
o
h
e
e
r
F
.
4
9
7
5
7
4
1
,
.
4
1
4
1
5
)
9
8
7
8
(
.
.
)
2
7
8
7
2
(
.
7
4
5
0
9
4
1
,
.
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
,
.
6
9
5
4
5
7
,
l
i
N
l
i
N
l
i
N
1
0
7
3
.
1
0
7
3
.
l
i
N
l
i
N
7
4
2
.
8
7
0
3
.
5
2
3
3
.
6
7
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
.
5
0
2
.
6
7
2
2
.
)
1
8
1
(
.
)
1
0
0
(
.
9
9
2
2
.
.
3
6
2
1
0
1
4
.
2
4
1
.
4
0
8
6
.
)
8
9
3
(
.
)
1
0
0
(
.
7
4
5
6
.
9
5
4
.
3
2
0
4
.
)
8
2
3
(
.
)
1
0
0
(
.
3
5
1
4
.
4
9
3
2
.
.
4
6
2
6
9
2
,
.
2
0
9
3
4
9
,
l
i
N
)
8
2
0
(
.
.
2
8
0
0
2
.
9
0
4
4
2
)
5
7
0
7
(
.
)
2
2
9
2
(
.
.
8
1
3
6
1
3
,
.
4
1
3
8
5
9
,
.
0
7
0
7
0
1
,
.
0
8
5
8
9
4
,
l
i
N
)
4
2
0
(
.
.
4
2
8
2
1
.
9
8
3
9
3
)
3
9
7
5
(
.
)
8
6
4
2
(
.
.
0
7
8
9
1
1
,
.
8
0
7
9
2
5
,
.
8
4
4
6
9
1
,
.
6
0
6
8
2
4
,
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
.
2
0
3
2
.
l
i
N
l
i
N
l
i
N
.
0
1
6
0
1
.
0
1
6
0
1
l
i
N
l
i
N
2
6
5
.
9
3
0
5
.
1
0
6
5
.
9
0
0
5
.
4
6
7
.
)
9
3
0
(
.
.
0
7
1
3
2
)
0
6
1
2
(
.
.
5
3
7
1
2
2
3
7
9
.
8
4
1
1
.
)
6
3
0
(
.
)
5
4
2
1
(
.
9
9
5
9
.
)
2
6
1
(
.
)
1
1
2
(
.
8
8
6
5
.
.
4
9
3
8
8
.
9
0
7
3
9
)
5
4
1
(
.
)
0
5
1
(
.
5
6
3
2
.
.
0
1
6
4
2
.
0
8
6
6
2
6
5
1
.
)
8
7
1
(
.
l
i
N
.
8
6
6
3
5
.
6
4
6
3
5
7
3
2
1
.
)
1
5
1
(
.
l
i
N
.
0
0
3
8
2
.
6
8
3
9
2
.
6
3
1
2
1
.
9
2
0
7
6
.
0
6
2
4
2
l
i
N
l
i
N
.
5
6
5
2
2
l
i
N
.
)
5
6
5
2
2
(
l
i
N
)
5
4
1
(
.
)
2
1
0
(
.
.
0
2
5
4
1
.
3
6
3
4
1
3
7
7
.
7
3
2
.
l
i
N
)
0
1
0
1
(
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
3
6
3
4
1
)
.
a
8
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
)
.
a
8
1
e
t
o
N
r
e
f
e
R
(
e
a
s
l
l
r
o
f
d
e
h
f
o
l
a
s
r
e
v
e
R
0
2
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
9
1
0
2
,
l
i
r
p
A
t
s
1
t
a
s
a
e
c
n
a
l
a
B
)
w
o
l
e
b
1
e
t
o
N
r
e
f
e
R
(
i
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
)
.
a
8
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
)
.
a
8
1
e
t
o
N
r
e
f
e
R
(
e
a
s
l
l
r
o
f
d
e
h
f
o
l
a
s
r
e
v
e
R
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
s
t
e
s
s
a
f
o
l
a
s
o
p
s
i
D
9
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
s
n
o
i
t
i
d
d
A
s
l
a
s
o
p
s
i
D
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
t
n
u
o
m
a
g
n
i
y
r
r
a
c
t
e
N
n
o
i
t
p
i
r
c
s
e
D
8
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
s
n
o
i
t
i
d
d
A
s
l
a
s
o
p
s
i
D
)
.
a
8
1
e
t
o
N
l
l
r
e
f
e
R
(
e
a
s
r
o
f
d
e
h
m
o
r
f
/
)
o
t
(
d
e
fi
i
s
s
a
l
c
e
R
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
8
1
0
2
,
l
i
r
p
A
t
s
1
t
a
s
a
e
c
n
a
l
a
B
)
w
o
l
e
b
1
e
t
o
N
r
e
f
e
R
(
i
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
s
t
e
s
s
a
f
o
l
a
s
o
p
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
)
.
a
8
1
e
t
o
N
l
l
r
e
f
e
R
(
e
a
s
r
o
f
d
e
h
m
o
r
f
/
)
o
t
(
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
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
t
n
u
o
m
a
g
n
i
y
r
r
a
c
t
e
N
.
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
s
e
r
a
h
s
y
r
a
n
d
r
o
f
o
t
s
o
c
i
e
d
u
l
c
n
i
s
g
n
d
i
l
i
u
B
@
e
r
o
r
c
E
l
a
t
o
T
s
r
e
t
p
o
c
i
l
e
H
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
s
e
g
r
a
B
,
s
e
l
c
i
h
e
V
,
s
e
h
c
n
u
a
L
t
n
e
m
p
u
q
E
i
d
n
a
s
e
r
u
t
x
i
F
d
n
a
s
e
n
i
l
e
l
b
a
c
k
r
o
w
t
e
n
d
n
a
t
n
a
l
P
t
n
e
m
p
u
q
E
i
,
s
d
a
o
R
y
a
w
l
i
a
R
,
s
g
n
d
i
s
i
s
g
n
i
s
s
o
r
c
y
t
t
e
J
l
a
o
C
@
s
r
e
h
t
O
t
n
a
l
P
-
s
g
n
d
i
l
i
u
B
-
s
g
n
d
i
l
i
u
B
s
k
r
o
W
c
i
l
u
a
r
d
y
H
d
n
a
L
d
n
a
L
l
d
o
h
e
s
a
e
L
l
d
o
h
e
e
r
F
s
t
e
s
s
A
d
e
n
w
O
)
.
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
n
o
i
t
p
i
r
c
s
e
D
.
5
.
A
264
s
t
n
e
m
e
t
a
t
S
l
a
i
c
n
a
n
i
F
e
n
o
l
a
d
n
a
t
S
e
h
T
o
T
s
e
t
o
N
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
.
s
i
s
a
b
e
l
a
s
p
m
u
l
s
a
n
o
”
n
r
e
c
n
o
c
g
n
o
g
“
a
s
a
i
,
s
e
i
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
(
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
fi
;
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
r
a
e
y
r
e
i
l
r
a
e
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
₹
-
9
1
0
2
.
,
h
c
r
a
M
.
t
s
1
3
(
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
;
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
₹
-
9
1
0
2
,
h
c
r
a
M
.
t
s
1
3
(
e
r
o
r
c
1
0
8
₹
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
8
1
e
t
o
N
r
e
f
e
R
(
e
l
a
s
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
5
5
1
2
₹
-
9
1
0
2
,
h
c
r
a
M
t
s
1
3
(
.
)
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
.
0
2
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
₹
-
9
1
0
2
,
h
c
r
a
M
.
t
s
1
3
(
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
)
a
(
)
b
(
)
c
(
)
d
(
.
y
a
b
m
o
r
T
t
a
d
e
t
a
c
o
l
)
t
n
e
m
g
e
S
n
o
i
t
a
r
e
n
e
G
(
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
D
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
,
s
r
a
e
y
r
e
i
l
r
a
e
e
h
t
g
n
i
r
u
D
:
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
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
2
2
e
t
o
N
r
e
f
e
R
:
s
e
t
o
N
.
1
.
2
.
3
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
5.
B.
Property, Plant and Equipment (Contd.)
Right of Use Assets (Refer Note 23)
Description
Cost
Balance as on 1st April, 2019 (Refer Note 3.11.1)
Additions during the year
Reclassified as held for sale (Refer Note 18a.)
Balance as at 31st March, 2020
Accumulated depreciation and impairment
Balance as on 1st April, 2019
Depreciation Expense
Balance as at 31st March, 2020
Net carrying amount
As at 31st March, 2020
As at 31st March, 2019
Description
Net carrying amount
A. Owned Assets
B. Right of Use Assets
Total
6.
Intangible Assets
Accounting Policy
Leasehold Land and
Sub-surface rights
Plant and
Equipment
395.56
69.31
(43.92)
420.95
Nil
35.21
35.21
385.74
Nil
11.43
Nil
Nil
11.43
Nil
4.57
4.57
6.86
Nil
E crore
Total
406.99
69.31
(43.92)
432.38
Nil
39.78
39.78
392.60
Nil
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
7,581.47
392.60
7,974.07
7,545.96
Nil
7,545.96
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 Intangible Assets
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.
265
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6.
Intangible Assets (Contd.)
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 assets
Computer softwares
Copyrights, patents, other intellectual property rights, services and operating rights
Useful lives
5 years
5 years
5 years
E crore
Total
Computer
softwares $
Copyrights, patents,
other intellectual
property rights,
services and
operating rights #
Licences and
franchises $
233.97
15.82
249.79
150.16
37.48
187.64
62.15
0.57
Nil
0.57
0.49
0.01
0.50
0.07
0.26
Nil
0.26
0.26
Nil
0.26
234.80
15.82
250.62
150.91
37.49
188.40
Nil
62.22
Computer
softwares $
Copyrights, patents,
other intellectual
property rights,
services and
operating rights #
Licences and
franchises $
205.63
28.34
233.97
112.50
37.66
150.16
83.81
0.53
0.04
0.57
0.48
0.01
0.49
0.08
0.26
Nil
0.26
0.26
Nil
0.26
E crore
Total
206.42
28.38
234.80
113.24
37.67
150.91
Nil
83.89
Licences and franchises
Description
Cost
Balance as at 1st April, 2019
Additions
Balance as at 31st March, 2020
Accumulated amortisation and impairment
Balance as at 1st April, 2019
Amortisation expense
Balance as at 31st March, 2020
Net carrying amount
As at 31st March, 2020
Description
Cost
Balance as at 1st April, 2018
Additions
Balance as at 31st March, 2019
Accumulated amortisation and impairment
Balance as at 1st April, 2018
Amortisation expense
Balance as at 31st March, 2019
Net carrying amount
As at 31st March, 2019
Notes:
# Internally generated intangible assets.
$ Other than internally generated intangible assets.
266
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
6.
Intangible Assets (Contd.)
Depreciation/Amortisation - Continuing Operations:
Depreciation on tangible assets
Depreciation on Right of Use assets
Amortisation on intangible assets
Total
7.
Non-current Investments
For the year ended
31st March, 2020
For the year ended
31st March, 2019
K crore
608.48
39.78
37.49
685.75
K crore
595.03
Nil
37.67
632.70
As at
31st March,
2020
As at
31st March,
2019
Quantity
Quantity
Face Value
(in K
unless stated
otherwise)
As at
31st March,
2020
K crore
As at
31st March,
2019
K crore
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
1,10,99,630
1,10,99,630
Tata Power Trading Co. Ltd.
Maithon Power Ltd.
1,60,00,000
1,60,00,000
111,65,99,120
111,65,99,120
Coastal Gujarat Power Ltd. (Refer Note 7 below) 800,04,20,000
800,04,20,000
Bhira Investments Pte. Ltd.
Bhivpuri Investments Ltd.
Tata Power Green Energy Ltd.
Khopoli Investments Ltd.
10,00,000
10,00,000
7,46,250
50,000
7,46,250
50,000
4,70,07,350
4,70,07,350
Trust Energy Resources Pte. Ltd.
12,91,53,344
12,91,53,344
Tata Power Delhi Distribution Ltd.
28,15,20,000
28,15,20,000
TP Ajmer Distribution Ltd.
10,000
10,000
Tata Power Jamshedpur Distribution Ltd.
80,50,000
80,50,000
TP Renewable Microgrid Ltd.
(formerly Industrial Power Utility Ltd.)
TCL Ceramics Ltd. (formerly Tata Ceramics Ltd.)
(Refer Note 6 below)
1,10,000
1,10,000
Nil
Nil
Tata Power Renewable Energy Ltd.
(Refer Note 7 below)
Tata Power Solar Systems Ltd.
Tata Power International Pte. Ltd.
Af-Taab Investment Co. Ltd.
104,51,07,715
104,51,07,715
2,29,77,567
2,29,77,567
6,77,30,650
6,77,30,650
10,73,000
10,73,000
** Less: Impairment in the value of Investments
(Refer Note 10 below)
Carried forward…….
10
10
10
10
USD 1
Euro 1
10
USD 1
USD 1
10
10
10
10
2
10
100
USD 1
100
11.07
11.07
11.07
11.07
37.09
1,116.83
8,593.25**
37.09
1,116.83
8,593.25**
4.10
4.08
0.02
255.20
607.95
200.93
10.00
4.10
4.08
0.02
255.20
607.95
200.93
10.00
8.05**
8.05**
0.11
Nil *
0.11
Nil *
1,054.03
1,054.03
322.98
577.55**
68.68
322.98
577.55**
68.68
12,860.85
12,860.85
4,009.14
8,851.71
8,862.78
4,140.60
8,720.25
8,731.32
267
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
7.
Non-current Investments (Contd.)
Brought forward…….
(ii) Investment in Perpetual Securities
Unquoted
Tata Power Renewable Energy Ltd.
(Refer Note 5 below)
Coastal Gujarat Power Ltd. (Refer Note 5 below)
(B)
Investment in Associates
Investment in Equity Shares fully Paid-up
Quoted
As at
31st March,
2020
As at
31st March,
2019
Quantity
Quantity
Face Value
(in K
unless stated
otherwise)
As at
31st March,
2020
K crore
8,862.78
As at
31st March,
2019
K crore
8,731.32
N.A.
N.A.
N.A.
N.A.
3,895.00
7,035.89
10,930.89
19,793.67
3,895.00
6,985.89
10,880.89
19,612.21
Tata Communications Ltd.
Nil
Nil
10
Nil
Nil *
Unquoted
Yashmun Engineers Ltd.
The Associated Building Co. Ltd.
Tata Projects Ltd. (Refer Note 8 below)
19,200
1,400
9,67,500
19,200
1,400
Nil
100
900
100
Dagachhu Hydro Power Corporation Ltd.
10,74,320
10,74,320
Nu 1,000
Panatone Finvest Ltd.
Nil
Nil
10
0.01
0.13
85.01
107.43
Nil
192.58
0.01
0.13
Nil *
107.43
Nil *
107.57
(C)
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)
3,93,00,000
3,93,00,000
23,86,80,000
23,86,80,000
Industrial Energy Ltd. (Refer Note 7 below)
49,28,40,000
49,28,40,000
LTH Milcom Pvt. Ltd.
Dugar Hydro Power Ltd.
Nil
Nil
4,34,25,002
4,34,25,002
** Less:
Impairment in the value of Investments
Sub-total I (A) + I (B) + I (C)
Carried forward…….
268
1,01,97,800
1,01,97,800
10
10.20**
10.20**
Nil
Nil
ZMW 1
Nil*
Nil*
10
10
10
10
10
39.30**
39.30**
238.68
492.84
Nil*
43.42**
824.44
67.50
756.94
238.68
492.84
Nil*
43.42**
824.44
67.50
756.94
20,743.19
20,476.72
20,743.19
20,476.72
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
7.
Non-current Investments (Contd.)
As at
31st March,
2020
As at
31st March,
2019
Quantity
Quantity
Face Value
(in K
unless stated
otherwise)
As at
31st March,
2020
K crore
As at
31st March,
2019
K crore
Brought forward…….
20,743.19
20,476.72
II Investments designated at Fair Value through
Other Comprehensive Income (Refer Note 9)
Investment in Equity Shares fully Paid-up
Quoted
Voltas Ltd.
Tata Consultancy Services Ltd.
Tata Teleservices (Maharashtra) Ltd.
Unquoted
Tata Services Ltd.
Tata Industries Ltd. #
Tata Sons Pvt. Ltd. #
Haldia Petrochemicals Ltd.
Tata International Ltd. #
Tata Teleservices Ltd.
III Investments carried at Amortised Cost
(A)
Investment in Subsidiaries
Investment in Preference Shares fully Paid-up
TCL Ceramics Ltd. (formerly Tata Ceramics Ltd.)
2,33,420
2,33,420
766
Nil
766
Nil
1,112
1,112
58,28,126
58,28,126
6,673
6,673
2,24,99,999
2,24,99,999
3,500
Nil
3,500
Nil
1
1
10
1,000
100
1,000
10
1,000
10
11.13
0.14
Nil *
11.27
Nil
102.69
241.95
56.48
3.75
Nil *
404.87
14.63
0.15
Nil*
14.78
Nil
102.69
241.95
56.48
3.75
Nil*
404.87
416.14
419.65
(Refer Note 6 below)
Nil
Nil
100
Nil *
Nil*
(B) Government Securities (Unquoted) fully Paid-up
40.00
Nil
(C) Statutory Investments
Contingencies Reserve Fund Investments
Government Securities (Unquoted) fully Paid-up
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted) fully Paid-up
Sub-total III (A) + III (B) + III (C)
Total
* Refer Asset Held For Sale (Refer Note 18a).
127.87
136.65
Nil
237.75
127.87
374.40
167.87
374.40
21,327.20
21,270.77
# 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.
269
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Non-current Investments (Contd.)
7.
Notes:
1.
2.
3.
4.
5.
6.
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
161.01
22.34
316.07
25.85
21,304.86
21,244.92
4,076.64
4,208.10
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’.
The Company, along with its subsidiary, has 30.68% shareholding in TCL Ceramics Ltd. (formerly known as Tata Ceramics
Ltd.). Further, TCL Ceramics Ltd. 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 Ceramics Ltd.’s relevant
activities, investment in the said Company has been considered as investment in subsidiary.
Pursuant to the Share Purchase Agreement (‘Agreement’) dated 4th January, 2020, the Company has transferred its Equity
and Preference share to the purchasers as a part of the conditions mentioned in the Agreement subject to final closing. The
said shares has been pledged back to the Company by the purchasers till the final closure. As all the conditions related to
the closing has not been completed, the Company believes that it still controls TCL Ceramics Ltd. till all the conditions are
fulfilled. Hence, no impact of sale of share has been accounted in the Standalone Ind AS financial statements. The impact of
the sale on the Company’s Standalone Ind AS financial statement will not be significant.
7.
Shares pledged :
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.
Category
31st March, 2020
31st March, 2019
Subsidiary
Subsidiary
Joint Venture
Joint Venture
Joint Venture
Joint Venture
Nos.
Nos.
310,25,44,200
310,25,44,200
25,81,14,935
25,81,14,935
4,52,500
2,00,43,000
23,86,80,000
25,13,48,400
4,52,500
2,00,43,000
23,86,80,000
25,13,48,400
* Re-classified as Asset Held For Sale (Refer Note 18a).
Further till previous year, 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. The outstanding borrowings
has been repaid during the current year against which the undertaking was given to the lender.
During the year ended 31st March, 2020, the Company has reassesed its plan for sale of investment in Tata Projects Ltd. and
has reclassified its investment in Tata Projects from Assets held for sale to Investment in Associate.
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.
8.
9.
270
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
7.
10.
Non-current Investments (Contd.)
(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) (shipping company 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. In the past, the Company had recognised an impairment provision of C 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 ₹ 1,200 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
10.87% p.a. (31st March, 2019: 10.61% p.a.) and investment in coal mines and related infrastructure companies is 12.68%
p.a. (31st March, 2019: 11.06% p.a.).
(b) Tata Power International Pte. Ltd. (TPIPL) (a wholly owned subsidiary of the Company) holds investments in Adjaristsqali
Netherlands B.V. (ABV) (a joint venture of TPIPL) operating 187 MW hydro power plant in Georgia. In the past, the
Company, in accordance with Ind AS 36 - 'Impairment of Assets' had recognized impairment provision on investment
of ₹ 577.55 crore and financial guarantee obligation of ₹ 103.54 crore.
Pursuant to debt restructuring of the ABV, execution of long-term power purchase agreement (PPA) with Government
of Georgia, receipt of insurance claims and start of commercial operations during the year ended 31st March, 2020,
the Company performed the recoverability assessment and recognised the reversal of ₹ 235.00 crore comprising of
reversal of ₹ 103.54 crore towards financial guarantee obligation and reversal of ₹ 131.46 crore towards its investment
in TPIPL which has been disclosed as an exceptional item in the statement of profit and loss.
The Company has performed the recoverability assessment and determined the value in use based on estimated
cash flow projections over the life of the assets included in CGU. Projected cash flows include cash flow projections
approved by management covering 3 to 5 year period and the cash flows beyond that has been projected based on
the long term forecast.
The following key assumptions were used for performing the valuation:
- Tariff post PPA period of 15 years.
- A pre-tax discount rate of 6.64 % was applied;
271
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
8.
Trade Receivables
(Unsecured unless otherwise stated)
Non-current
Considered Good (Refer Note 39a.)
Total
Current
Considered Good - Secured (Refer Note below)
Considered Good
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
Nil
Nil
185.76
185.76
234.48
886.82
30.09
1,151.39
42.71
1,108.68
216.72
1,059.18
27.29
1,303.19
46.75
1,256.44
Note:
Company holds security deposits of C 234.48 crore (31st March, 2019 - C 216.72 crore) in respect of electricity receivables.
8.1
Trade Receivables
As at 31st March, 2020, C 639.18 crore (31st March, 2019 - C 900.14 crore) is due from Brihanmumbai Electricity Supply &
Transport Undertaking, Maharashtra State Electricity Transmission Company Ltd., Tamil Nadu Generation and Distribution
Corporation and Tata Steel Ltd. which represents customers owing 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 18a.)
Balance at the end of the year
Expected Credit Loss (%)
As at
31st March, 2020
0.00%
0.03%
0.10%
5.92%
As at
31st March, 2019
0.10%
0.11%
0.99%
9.30%
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
550.31
340.41
50.04
210.63
734.72
343.87
30.61
193.99
As at
31st March, 2020
K crore
46.75
As at
31st March, 2019
K crore
36.66
(4.04)
Nil
42.71
21.63
(11.54)
46.75
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
272
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
9.
Loans
(Unsecured unless otherwise stated)
Non-current - At Amortised Cost
(i) Security Deposits
Considered Good
Credit Impaired
Less: Allowance for Doubtful Deposits
(ii) Loans to Related Parties (Refer Note 41)
Considered Good
Credit Impaired
Less: Allowance for Doubtful Loans
(iii) Other Loans
Loans to Employees
Considered Good
Total
Current - At Amortised Cost
(i) Security Deposits
Considered Good
(ii) Loans to Related Parties (Refer Note 41)
Considered Good
Credit Impaired
Less: Allowance for Doubtful Loans
Total
* Reclassified as Held for Sale. (Refer Note 18a.)
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
36.59
30.16
66.75
30.16
36.59
Nil
55.66
55.66
55.66
Nil
5.51
42.10
3.47
3.47
546.62
12.00
558.62
12.00
546.62
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
550.09
119.20
273
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
9.
Loans (Contd.)
Disclosure under Regulation 53(f) and 34(3) read together with paragraph 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
Amount Outstanding as at the
year end
K crore
Maximum Principal Amount
Outstanding during the year
(excluding interest accrued)
Tata Power Renewable Energy Ltd.
Coastal Gujarat Power Ltd.
Maithon Power Ltd.
Tata Power Jamshedpur Distribution Ltd. $
TCL Ceramics Ltd. (formerly Tata Ceramics Ltd.) $
TP Ajmer Distribution Ltd.
Mandakini Coal Company Ltd. $
Nelito Systems Ltd. $
Indo Rama Renewables Jath Ltd.
TP Renewable Microgrid Ltd.
(formerly Industrial Power Utility Ltd.)
Walwhan Solar MP Ltd.
Welspun Renewable Energy Pvt Ltd.
Tata Power Green Energy Ltd.
Tata Power Trading Company Ltd.
Powerlinks Transmission Ltd.
Walwhan Solar TN Ltd.
Tata Power Solar Systems Ltd.
Prayagraj Power Generation Company Ltd.
Yashmun Engineers Ltd.
Itezhi Tezhi Power Corporation #
Total
Notes:
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Joint Venture
Associate
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Joint Venture
Subsidiary
Subsidiary
Joint Venture
Associate
Joint Venture
31st March,
2020
31st March,
2019
31st March,
2020
31st March,
2019
450.00
Nil
Nil
Nil
12.00
95.00
54.39
1.27
Nil
1.55
Nil
Nil
0.07
Nil
Nil
Nil
Nil
Nil
Nil
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
Nil
Nil
450.00
252.00
200.00
Nil
17.69
190.00
54.39
1.27
Nil
1.55
15.09
200.00
0.07
80.00
1.00
81.00
100.00
13.43
Nil
245.00
419.49
47.04
1.24
10.84
25.00
54.25
1.27
35.00
0.05
10.00
30.00
0.07
100.00
0.10
165.00
Nil
Nil
1.00
614.28
18.59
632.87
184.48
16.51
200.99
18.59
15.56
$ Provided for.
# Reclassified as held for sale (including interest accrued).
274
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
10. Finance Lease Receivable - At Amortised Cost
(Unsecured unless otherwise stated)
Accounting Policy
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards incidental
to ownership to the lessee. All other leases are classified as operating lease. 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. The Company
recognises lease payments received under operating leases as income on a straight-line basis over the lease term.
Finance Lease Receivable - Non-current
Finance Lease Receivable - Current
Total
10.1 Leasing Arrangements
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
553.03
31.89
584.92
554.27
37.58
591.85
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. The Company has recognised an amount
of C 88.91 crore (31st March, 2019 - C 86.70 crore) as income for finance lease during the year ended 31st March, 2020.
10.2 Amount receivable under Finance Lease
Less than a year
One to two years
Two to three years
Three to four years
Four to five years
Total (A)
More than five years (B)
Total (A +B)
Unearned finance income
Present Value of Minimum Lease Payments Receivable
Minimum Lease
Payments as at
31st March, 2020
K crore
Minimum Lease
Payments as at
31st March, 2019
111.96
108.66
107.66
106.57
105.57
540.42
630.10
1,170.52
585.60
584.92
108.64
105.97
105.26
104.42
103.47
527.76
716.24
1,244.00
652.15
591.85
Lessor - Operating Lease
The Company has entered into operating leases for its certain building, plant and machinery and other equipment.
These typically have lease terms of between 1 and 10 years. The Company has recognized an amount of C 11.16 crore
(31st March, 2019 - C 16.16 crore) as rental income for operating lease during the year ended 31st March, 2020.
275
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
11. Other Financial Assets - At Amortised Cost
Non-current
(i) Accruals
Doubtful
Interest Accrued on Loans to Related Parties
Less: Allowance for Doubtful Interest
(ii) Others
Unsecured, considered good
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
1.24
1.24
1.24
Nil
1.24
1.24
1.24
Nil
Advance towards Equity (Refer Note 1 below)
178.50
Nil
Balances with Banks:
In Deposit Accounts (with remaining maturity of
more than twelve months) (Refer Note 2 below)
Other Advances
Total
3.14
41.13
222.77
2.89
Nil
2.89
Notes:
1. Odisha Electricity Regulatory Commission ('OERC') had issued a request for proposal (RFP) for sale of controlling interest in distribution
business of Central Electricity Supply Utility of Orissa. The Company had bid for it and has been identified as the successful bidder. As per
the requirement of RFP, the Company has deposited C 178.50 crore with OERC. Pending vesting order for the completion of sale, the amount
deposited is disclosed as non-current financial assets and will be converted to equity after passing of the vesting order by OERC.
2. Balances with Banks held as Margin Money Deposits against Guarantees.
Current
(i) Accruals
Unsecured, considered good
Interest Accrued on Inter-corporate/Bank Deposits
Interest Accrued on Investments
Interest Accrued on Finance Lease Receivable
Interest Accrued on Loans to Related Parties
Doubtful
Interest Accrued on Loans to Related Parties
Interest Accrued on Inter-corporate Deposits
Less: Allowance for Doubtful Interest
(ii) Others
Unsecured, considered good
Recoverable from Consumers
Dividend Receivable
Other Receivables
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
0.50
3.51
6.85
3.09
0.55
1.40
15.90
1.95
13.95
221.45
Nil
0.18
221.63
0.39
6.69
6.96
0.19
0.32
1.40
15.95
1.72
14.23
Nil
81.16
0.67
81.83
Total
235.58
96.06
276
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements 12. Non-current Tax Assets
Advance Income-tax (Net)
Total
13. Other Assets
Non-current
(i) Capital Advances
Unsecured, considered good
Doubtful
Less: Allowance for Doubtful Advances
(ii) Security Deposits
Unsecured, considered good
(iii) Balances with Government Authorities
Unsecured, considered good
Advances
Amount Paid Under Protest
VAT/Sales Tax Receivable
(iv) Unamortised Premium for Leasehold Land
Unsecured, considered good
(v) Others
Unsecured, considered good
Prepaid Expenses
Recoverable from Consumers
Doubtful
Less: Allowance for Doubtful Advances
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
135.00
135.00
68.65
68.65
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
5.06
0.12
5.18
0.12
5.06
Nil
0.90
16.22
25.73
42.85
17.56
0.12
17.68
0.12
17.56
227.00
50.10
16.22
58.05
124.37
Nil
202.39
0.89
960.84
Nil
961.73
Nil
961.73
0.99
404.79
0.93
406.71
0.93
405.78
Total
1,009.64
977.10
277
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 13. Other Assets (Contd.)
Current
(i) Balances with Government Authorities
Unsecured, considered good
Advances
VAT/Sales Tax Receivable
Doubtful
Less: Allowance for Doubtful Advances
(ii) Unamortised Premium for Leasehold Land
Unsecured, considered good
(iii) Others
Unsecured, considered good
Prepaid Expenses
Recoverable from Consumers
Advances to Vendors
Other Advances
Doubtful
Less: Allowance for Doubtful Advances
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
4.86
Nil
0.46
5.32
0.46
4.86
12.36
3.69
Nil
16.05
Nil
16.05
Nil
3.24
38.58
Nil
102.07
0.75
0.13
141.53
0.13
141.40
22.67
787.00
122.53
0.62
0.13
932.95
0.13
932.82
Total
146.26
952.11
278
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements 14.
Inventories
Accounting Policy
Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on moving 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
(a) Fuel
Fuel-in-Transit
(b) Stores and Spares (Refer Note 2 below)
(c) Loose Tools
(d) Others
Property Under Development
Total
Notes:
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
289.75
60.62
133.80
0.27
253.44
56.97
149.19
0.35
150.57
119.56
635.01
579.51
1. Refer Note 22 for Inventories pledged as security for liabilities.
2. During the year ended 31st March, 2020, the Company has recognised C 6.83 crore (31st March, 2019 - C Nil) as an expense for the write down of
unserviceable stores and spares inventory.
15. Current Investments
Investments carried at Amortised Cost
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted)
Investments carried at Fair Value through Profit and Loss
Mutual Funds (Unquoted)
Total
Note:
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
Nil
42.00
20.00
20.00
Nil
42.00
Aggregate Carrying Value of Unquoted Investments.
20.00
42.00
279
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
16. Cash and Cash Equivalents - At Amortised Cost
Accounting Policy
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.
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
(i) Balances with Banks:
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
(i) 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
Reconciliation of Liabilities from Financing Activities
158.54
158.54
(1.05)
157.49
7.62
(0.02)
7.60
165.09
Particulars
As at
1st April,
2019
Cash flows
Proceeds
Repayment
Non-cash
Transactions
Reclassified
as part of
Discontinued
Operations
Non-current Borrowings (including Current
Maturities of Non-current Borrowings)
Current Borrowings (excluding Bank Overdraft)
Lease liabilities (Refer Note 3.11.1)
Total
10,720.72
6,729.61
225.00
17,675.33
3,403.59
30,776.85
Nil
34,180.44
(2,568.35)
(31,295.20)
(11.78)
(33,875.33)
28.59
Nil
Nil
28.59
4.80
Nil
65.63
70.43
Particulars
As at
1st April,
2018
Cash flows
Proceeds
Repayment
Non-cash
Transactions
Reclassified
as part of
Discontinued
Operations
75.94
75.94
(2.19)
73.75
6.13
(0.02)
6.11
79.86
K crore
As at
31st March,
2020
11,589.35
6,211.26
278.85
18,079.46
K crore
As at
31st March,
2019
Non-current Borrowings (including Current
Maturities of Non-current Borrowings)
12,244.97
3,337.09
(4,729.41)
(135.48)
3.55
10,720.72
Current Borrowings (excluding Bank Overdraft)
4,231.02
22,729.91
(20,231.28)
Nil
Nil
Nil
Nil
Nil
(0.04)
6,729.61
Nil
Nil
16,475.99
26,067.00
(24,960.69)
(135.48)
3.51
17,450.33
Lease liabilities
Total
280
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
17. Other Balances with Banks - At Amortised Cost
In Deposit Accounts (Refer Note below)
(a)
(b) In Earmarked Accounts-
Unpaid Dividend Account
Total
Note:
Balances with banks held as margin money deposits against guarantees.
18a. Assets Classified as Held For Sale
As at
31st March, 2020
K crore
2.00
As at
31st March, 2019
K crore
2.00
18.40
20.40
17.85
19.85
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. Property, plant and equipment and intangible assets once classified as held for sale 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:
- 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.
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 Standalone Ind AS financial statements mainly include amounts for continuing operations,
unless otherwise mentioned.
Land (Refer Note (i) below)
Building and Plant and Equipment (Refer Note (i) and (v) below)
Investments carried at Fair Value through Other Comprehensive Income
Investments carried at Cost in Associates and Joint Ventures [Refer Note (ii) and (iii) below and 7(8)]
Loans and other receivables from Joint Venture (Refer Note (ii) below)
Transmission Lines - Capital Work in Progress (Refer Note (iv) below)
Assets of Discontinued Operations (Refer Note 18c.)
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
301.66
8.67
22.81
275.75
22.74
127.70
1,880.07
2,639.40
309.99
14.30
38.65
360.76
18.59
Nil
2,064.30
2,806.59
Notes:
(i) During the year, the Company has reclassified following assets from held for sale to Property, Plant and Equipment :
(a) Building at Erangal C 0.23 crore.
(b) Oil Tankage unit at Trombay (Land C 0.04 crore, Building and Plant and Equipment C 4.68 crore).
During the year, the Company has classified Helicopter (Book Value C 0.17 crore) from Property, Plant and Equipment to held for sale.
281
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
18a. Assets Classified as Held For Sale
During the previous year the Company, has decided to sell/transfer following land and consequently classified as assets held for sale:
(a) Land at Hadapsar C 0.08 crore.
(b) Land at Dehrand C 215.56 crore.
(c) Land at Oil Tankage Unit, Trombay (CTTL) C 0.04 crore.
During the previous year, land at Belgaum (Book value - C 2.90 crore) has also been disposed off.
During the previous year the Company, had decided to sell/transfer following buildings and consequently classified as assets held for sale:
(a) Building at Erangal C 0.23 crore.
(b) Building at Panvel C 0.48 crore.
(c) Building at Peninsula C 8.02 crore.
(d) Building at Metropolitan C Nil.
(e) Building at Oil Tankage Unit, Trombay (CTTL) C 0.13 crore.
(ii) During the previous year, the Company decided to divest its investments in Itezhi Tezhi Power Corporation (‘ITPC’) of C 275.75 crore along with
loans and other receivables amounting to C 22.74 crore. Accordingly, the said investments along with loans and other receivables have been
classified as held for sale.
(iii) During the previous year, the Company sold investments in Panatone Finvest Ltd. (C 600.00 crore) and Tata Communications Ltd. (C 343.81 crore)
(Associate Companies) at the sale value of C 1,542.62 crore and C 614.18 crore respectively, which were classified as Assets Held for Sale. The
resultant gain on sale of investments of C 942.62 crore and C 270.37 crore respectively, has been disclosed as an exceptional items in the statement
of profit and loss.
(iv) Maharashtra Electricity Regulatory Commission (‘MERC’) has ordered termination of Vikhroli Transmission Lines project carried out by the
Company and decided to invite fresh bids for completion of the project. MERC has also ordered that cost incurred by the Company shall be
reimbursed by the successful bidder. Accordingly, the Company reclassified the said project as held for sale.
(v) During the year, the Company sold Metropolitan building at the sale value of C 13.90 crore (Book Value C 0.89 crore) which was classified as held
for sale. The resultant gain on sale of land of C 13.01 crore has been disclosed in the Statement of Profit and Loss.
18b. Liabilities directly associated with Assets Classified as Held For Sale
Liabilities of Discontinued Operations (Refer Note 18c.)
Other Liabilities
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
1,032.07
4.25
1,036.32
966.27
Nil
966.27
18c. Assets Classified as Held For Sale - Discontinued Operations
During the earlier 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 C 2,230 crore (out of which C 1,040 crore payable at the time of closing and C 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.
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
Other Expenses
Total Expenses
Profit/(Loss) before tax from Discontinued Operations
282
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
343.77
143.59
244.22
90.04
36.15
55.00
425.41
(81.64)
138.10
110.85
36.33
50.13
335.41
(191.82)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
18c. Assets Classified as Held For Sale - Discontinued Operations (Contd.)
Particulars
Impairment Loss on Remeasurement of Fair Value (Refer Note below)
Tax Expense/(Income)
Current Tax/(Credit)
Deferred Tax
Profit/(Loss) after tax from Discontinued Operations
Other Comprehensive Income/(Expense)
Tax on Other Comprehensive Income
Total Comprehensive Income/(Expense)
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
(361.00)
Nil
Nil
(32.41)
(32.41)
(410.23)
0.20
Nil
(71.92)
5.94
(65.98)
(125.84)
(1.14)
0.40
(410.03)
(126.58)
Major classes of Assets and Liabilities of Strategic Engineering Division classified as held for sale as at
31st March, 2020 are as follows:
Particulars
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
Impairment Loss on Remeasurement of Fair Value
Total Assets Classified as Held For Sale
Liabilities
Non-current Liabilities
Financial Liabilities
Provisions
Current Liabilities
Financial Liabilities
Provisions
Other Current Liabilities
Total Liabilities directly associated with Assets Classified as Held For Sale
Net Assets directly associated with Discontinued Operations
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
382.27
422.58
124.13
356.71
3.68
35.40
83.30
663.67
169.33
2,241.07
(361.00)
1,880.07
594.76
27.68
258.99
9.76
140.88
1,032.07
848.00
302.06
418.75
123.42
347.10
3.66
74.66
104.15
261.96
428.54
2,064.30
Nil
2,064.30
679.31
30.22
190.00
17.91
48.83
966.27
1,098.03
Note:
During the year, the Company has reassessed the fair value of consideration receivable from TASL and has recognised an
impairment loss of C 361.00 crore in the Standalone Ind AS financial statements. The fair value on consideration has been
determined based on the expected value of the consideration using discounted present value technique. The fair value has
been categorised under Level 3 inputs, the key assumption being achievement/non achievement of milestones as defined
in the scheme of arrangement.
283
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
18c. Assets Classified as Held For Sale - Discontinued Operations (Contd.)
Net cash flows attributable to Strategic Engineering Division are as follows:
Particulars
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)
For the year ended
31st March, 2020
K crore
127.80
(44.99)
(81.32)
1.49
6.11
7.60
For the year ended
31st March, 2019
K crore
18.67
(87.35)
72.95
4.27
1.84
6.11
1. During the year, the Company has incurred Research and Development expenditure including capital expenditure
amounting to C 10.02 crore (31st March, 2019 - C 43.62 crore).
2. Estimated amount of Contracts remaining to be executed on capital account and not provided for is C 66.22 crore
(31st March, 2019 - C 55.57 crore).
3. Contingent Liability of excise duty amounts to C 14.28 crore (31st March, 2019 - C 14.28 crore).
19. Regulatory Deferral Account
Accounting Policy
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 The Institute of Chartered Accountants of India (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 Standalone Ind AS 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. the total of all regulatory deferral account debit balances and related deferred tax balances; and
ii. 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 Deferral Account - Liability - Current
Regulatory Liabilities
Regulatory Deferral Account - Assets - Non-current
Regulatory Assets
Net Regulatory Assets/(Liabilities)
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
Nil
Nil
258.32
258.32
999.00
999.00
Rate Regulated Activities
(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, 2020. 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.
284
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
19. Regulatory Deferral Account (Contd.)
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities is as follows:
Opening Regulatory Assets (Net of Liabilities)
Regulatory Income/(Expenses) during the year
(i) Power Purchase Cost
(ii) Other expenses as per the terms of Tariff Regulations including Return On Equity
(iii) Collected during the year as per approved Tariff
(iv) Amount Collected in respect of earlier years (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)
Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income) on account of
New Tax Regime (Refer Note 35)
Closing Regulatory Assets (Net of Liabilities)
(G)
(A + B + C + D + E + F + G)
(A)
(B)
(C)
(D)
(E)
(F)
As at
31st March, 2020
K crore
999.00
As at
31st March, 2019
K crore
1,310.19
2,212.00
779.00
(3,460.00)
(323.24)
(792.24)
24.00
(15.28)
(21.32)
162.16
(98.00)
258.32
2,282.00
901.00
(3,382.00)
(320.03)
(519.03)
29.15
(193.76)
274.26
98.19
Nil
999.00
Note:
Pursuant to receipt of true-up tariff order from the Regulatory Commission for the years 2017-18 and 2018-19 (31st March, 2019 - 2014-15 to 2016-17),
the Company had recognised net expenditure of ₹ 15.83 crore (31st March, 2019 net income of ₹ 91.95 crore) comprising of a credit of ₹ 5.49 crore
(31st March, 2019 - ₹ 274.26 crore) in regulatory income and a charge of ₹ 21.32 crore (31st March, 2019 - ₹ 182.31 crore) to revenue from operations.
20a. Share Capital
Authorised
Equity Shares of C 1/- each
Cumulative Redeemable Preference Shares of C 100/- each
350,00,00,000
2,29,00,000
350.00 350,00,00,000
229.00
2,29,00,000
579.00
350.00
229.00
579.00
As at 31st March, 2020
K crore
Number
As at 31st March, 2019
K crore
Number
Issued
Equity Shares [including 28,32,060 shares (31st March, 2019 - 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 Ltd.
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,
2019 - 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 Ltd. cancelled pursuant to the Scheme of Amalgamation
sanctioned by the High Court of Judicature, Bombay]
Less: Calls in arrears [including C 0.01 crore (31st March, 2019 - C 0.01
crore) in respect of the erstwhile The Andhra Valley Power Supply
Company Ltd. and the erstwhile The Tata Hydro-Electric Power
Supply Company Ltd.]
Add: Equity Shares forfeited - Amount paid
Total Subscribed and Paid-up Share Capital
276,17,00,970
276.17 276,17,00,970
276.17
270,47,73,510
270.48 270,47,73,510
270.48
16,52,300
0.04
270.44
0.06
270.50
16,52,300
0.04
270.44
0.06
270.50
285
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
20a. Share Capital (Contd.)
(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
As at 31st March, 2020
K crore
Number
As at 31st March, 2019
K crore
Number
270,64,25,810
270.50 270,64,25,810
270.50
Nil
Nil
Nil
Nil
Outstanding at the end of the year
270,64,25,810
270.50 270,64,25,810
270.50
(ii)
Terms/rights attached to Equity Shares
The Company has issued only one class of Equity Shares having a par value of C 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 E 1/- each fully paid
Tata Sons Pvt. Ltd.
Life Insurance Corporation of India
ICICI Prudential Bharat Consumption Funds *
Matthews Pacific Tiger Fund
As at 31st March, 2020
As at 31st March, 2019
Number
% Holding
Number
% Holding
95,39,46,984
17,15,81,237
21,83,11,309
18,03,16,487
35.27
83,97,99,682
6.34
8.07
6.67
20,97,31,735
11,38,29,237
18,03,16,487
31.05
7.75
4.21
6.67
* Shareholding has been reported based on common Permanent Account Number
20b. Unsecured Perpetual Securities
11.40% Unsecured Perpetual Securities
Add: Movement during the year
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
1,500.00
1,500.00
Nil
Nil
1,500.00
1,500.00
In an earlier year, the Company raised C 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.
286
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
21. Other Equity
General Reserve
Securities Premium
Capital Redemption Reserve
Capital Reserves
Statutory Reserve
Debenture Redemption Reserve
Opening Balance
Add/(Less): Amount transferred from/(to) Retained Earnings (Net)
Closing Balance
Retained Earnings (Refer Note 1 below)
Opening Balance
Add/(Less): Profit/(Loss) for the year (Refer Note 3.11.2)
Transfer from Debenture Redemption Reserve (Net)
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
3,853.98
5,634.98
1.85
61.66
660.08
421.95
(125.00)
296.95
2,954.12
148.12
125.00
3,853.98
5,634.98
1.85
61.66
660.08
1,000.61
(578.66)
421.95
1,878.99
1,768.70
578.66
Transfer from Equity Instrument through Other Comprehensive Income
(Refer Note 3 below)
356.25
(735.49)
Other Comprehensive Income/(Expense) arising from Remeasurement of Defined
Benefit Obligation (Net of Tax)
Payment of Dividend (Refer Note 2 below)
Distribution on Unsecured Perpetual Securities (Refer Note 3.11.2)
Closing Balance
Equity Instruments through Other Comprehensive Income
Opening Balance
Add/(Less): Transfer to Retained Earnings (Refer Note 3 below)
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
Notes:
(33.42)
(351.99)
(171.00)
72.96
3,027.08
330.48
(356.25)
(3.50)
(15.84)
Nil
Nil
(45.11)
(13.75)
(351.99)
(171.00)
1,075.13
2,954.12
(374.12)
735.49
0.17
(31.05)
0.01
(0.02)
330.48
13,491.47
13,919.10
Includes gain on fair valuation of land which is not available for distribution C 222.31 crore (31st March, 2019 - C 222.31 crore).
1.
2. The shareholders of the Company in their meeting held on 18th June, 2019 approved final dividend of C1.30 per share aggregating C 351.99
crore (excluding dividend distribution tax) for the financial year 2018-19. The said dividend was paid to the holders of fully paid equity shares
on 20th June, 2019.
3. Represents gain/(loss) on sale of certain investments carried at fair value through other comprehensive income transferred to Retained
4.
Earnings.
In respect of the year ended 31st March, 2020, the directors have proposed a dividend of C 1.55 per share (31st March, 2019 - C 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 Standalone Ind AS 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 C 419.68 crore (31st March, 2019 - C 351.99 crore).
287
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
21. Other Equity (Contd.)
Nature and purpose of reserves:
General Reserve
General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the
General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the General Reserve will not be reclassified subsequently to statement of profit and loss.
Securities Premium
Securities Premium 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 was 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. Pursuant to Companies (Share Capital and Debentures)
Amendment Rules, 2019 dated 16th August, 2019, the Company is not required to create Debenture Redemption Reserve
(DRR). Accordingly, the Company has not created DRR during the year and DRR created till previous years will be transferred
to retained earnings on 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 Reserve
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.
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 off.
288
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
22. Non-current Borrowings - At Amortised Cost
As at 31st March, 2020
As at 31st March, 2019
Non-current
Current* Non-current
Current*
Maturities
K crore
Maturities
K crore
(i) Unsecured
Redeemable Non-Convertible Debentures
(a) 10.75% Series 2072
(b) 9.00% Series 2025
(c) 7.99% Series 2024
(d) 8.84% Series 2023
(e) 8.84% Series 2022
(f ) 9.48% Series 2019
Term Loans from Banks
(g)
ICICI Bank
(h) Axis Bank
(i) First Abu Dhabi Bank
(j) Sumitomo Mitsui Banking Corporation
Deferred Payment Liabilities
(k) Sales Tax Deferral
(ii) Secured
Redeemable Non-Convertible Debentures
(a) 8.85% Series 2028
(b) 9.15% Series 2025
(c) 9.15% Series 2025
(d) 9.40% Series 2022
Term Loans from Banks
(e) HDFC Bank
(f )
ICICI Bank
(g) Kotak Mahindra Bank
(h) State Bank of India
(i)
IDFC Bank
(j) Axis Bank
Term Loans from Others
(k) Asian Development Bank
(l)
Indian Renewable Energy Development Agency Ltd.
Nil
Nil
Nil
Nil
Nil
500.00
500.00
150.00
166.67
Nil
Nil
1,494.40
249.74
1,197.21
749.12
499.40
Nil
Nil
Nil
1,492.31
Nil
300.00
1,496.35
Nil
Nil
Nil
Nil
Nil
Nil
4,189.87
300.00
2,988.66
223.56
166.58
132.54
199.70
722.38
337.50
166.67
67.00
100.00
671.17
523.55
333.06
Nil
Nil
856.61
316.67
2.83
5.67
8.50
8.50
(A)
4,915.08
976.84
3,853.77
825.17
197.19
89.88
99.94
209.68
596.69
1,590.27
505.78
561.77
1,139.25
Nil
516.49
4,313.56
Nil
Nil
Nil
16.25
16.00
25.00
Nil
57.25
74.37
150.00
150.95
118.68
Nil
226.66
720.66
6.33
2.94
9.27
Nil
105.86
124.90
209.63
Nil
16.00
25.00
Nil
440.39
41.00
917.81
624.76
712.73
1,234.17
623.44
333.38
395.00
120.00
150.93
94.94
158.75
166.67
4,446.29
1,086.29
6.33
2.94
9.27
12.67
5.87
18.54
Total
(A + B)
9,825.33
1,764.02
8,749.72
1,971.00
* Amount disclosed under Other Current Financial Liabilities (Refer Note 24)
(B)
4,910.25
787.18
4,895.95
1,145.83
289
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 22. Non-current Borrowings (Contd.)
Security
(i)
The Debentures mentioned in (b) 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) The Debentures mentioned in (c) 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.
(iii) The Debentures mentioned in (d) 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.
(iv) The Loans mentioned in (a), (e), (g), (h), 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.
(v) The Loans mentioned in (f) have also been secured by whole of current assets of the Company, present and future, in
a first pari passu manner.
(vi) The Loans mentioned in (g) is also secured by second charge on all movable fixed assets and current assets.
(vii) The Loans from Asian Development Bank and Indian Renewable Energy Development Agency Limited mentioned in
(k) and (l) 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
Amount
Outstanding
as at
31st March,
2020
Financial Year
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-30 FY 30-31
and
onwards
K crore
(i) Unsecured - At Amortised Cost
Redeemable Non-Convertible Debentures
(a) 10.75% Series 2072 (Refer Note 1 below)
1,500.00
(b) 9.00% Series 2025
(c) 7.99% Series 2024
(d) 8.84% Series 2023
(e) 8.84% Series 2022
250.00
-
-
-
-
-
-
-
-
250.00
-
- 1,500.00
1,500.00
300.00
300.00
300.00
300.00
300.00
750.00
500.00
-
-
-
-
750.00
500.00
Term Loans from Banks (Refer Note 3 below)
(f)
ICICI Bank
(g) Axis Bank
(h) First Abu Dhabi Bank
562.50
337.50
225.00
333.33
166.67
166.66
-
-
200.00
67.00
67.00
66.00
(i) Sumitomo Mitsui Banking Corporation
300.00
100.00
100.00
100.00
Deferred Payment Liabilities
(j) Sales Tax Deferral (Refer Note 2 below)
8.50
5.67
2.83
-
290
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
22. Non-current Borrowings (Contd.)
Particulars
(ii) Secured - At Amortised Cost
Redeemable Non-Convertible Debentures
(a) 8.85% Series 2028
(b) 9.15% Series 2025
(c) 9.15% Series 2025
(d) 9.40% Series 2022
ICICI Bank
Term Loans from Banks (Refer Note 3 below)
(e) HDFC Bank
(f)
(g) Kotak Mahindra Bank
(h) State Bank of India
(i) Axis Bank
Term Loans from Others (Refer Note 3 below)
(j) Asian Development Bank
(k)
Agency Ltd.
Indian Renewable Energy Development
Less:
Impact of recognition of borrowing at
amortised cost using effective interest
method.
Amount
Outstanding
as at
31st March,
2020
Financial Year
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-30 FY 30-31
and
onwards
K crore
213.44
106.00
125.00
210.00
16.25
16.00
25.00
-
16.25
16.00
20.00
-
16.25
16.00
20.00
210.00
16.25
16.00
20.00
-
16.25
16.00
20.00
-
132.19
26.00
20.00
-
-
-
-
-
1,667.83
660.00
712.72
1,257.91
743.32
74.38
150.00
150.94
118.67
226.67
140.00
120.00
150.94
94.94
226.65
140.00
150.00
50.94
94.94
60.00
140.00
240.00
50.94
189.98
130.00
140.00
-
50.94
381.17
100.00
717.82
-
258.02
378.21
-
315.63
-
-
-
-
6.34
6.34
-
-
-
-
-
-
2.93
-
11,609.82 1,764.02 1,646.27 2,474.13
2.93
-
-
1,103.17
-
1,274.36
-
-
1,532.24 1,815.63
20.47
11,589.35
Notes:
1.
2.
3.
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.
Sales Tax Deferral is repayable in 150 installments commencing from April, 2013 and repayable in full by March, 2022.
The rate of interest for term loans from banks ranges from 7.25% to 9.25% and rate of interest for term loans from others is 9.36%.
291
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
23. Lease Liabilities
Accounting Policy for leases from 1st April, 2019
At inception of contract, the Company assesses whether the Contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At inception or on reassessment of a contract that contains a lease component, the Company allocates consideration in the
contract to each lease component on the basis of their relative standalone price.
As a Lessee
i)
Right-of-use Assets
The Company recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
lease payments made at or before the commencement date less any lease incentives received and estimate of costs
to dismantle. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated useful lives of the assets, as follows:
- Plant and Equipment - 2 years
- Leasehold land including Sub-surface rights - 2 to 25 years
The Company presents right-to-use assets that do not meet the definition of investment property in ‘Property, Plant and
Equipment'.
ii) Lease Liabilities
At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of
lease payments to be made over the lease term. In calculating the present value of lease payments, the Company
generally uses its incremental borrowing rate at the lease commencement date if the discount rate implicit in the lease
is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. The carrying amount is remeasured when there is a change in future lease
payments arising from a change in index or rate. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an
option to purchase the underlying asset.
iii) Short term leases and leases of low value of assets
The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of
low-value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and
leases of low value assets are recognised as expense on a straight-line basis over the lease term.
Leasing arrangement as Lessee
The Company has lease contracts for various items of plant, machinery, land, vehicles and other equipment used in its
operations. Leases of Leasehold land including Sub-surface rights and Plant and Equipment generally have lease terms
between 2 and 25 years. Generally, the Company is restricted from assigning and subleasing the leased assets.
Amount recognised in the Statement of Profit and Loss
Depreciation of Right-of-use assets
Interest on lease liabilities
Expenses related to short term leases
Expenses related to leases of low value assets, excluding short term leases of low value assets
K crore
For the year ended
31st March, 2020
39.78
17.56
29.07
0.38
Refer Note 5A for additions to Right-Of-Use Assets and the carrying amount of Right-Of-Use Assets as at 31st March, 2020. Further, Refer
Note 42.4.3 for maturity analysis of lease liabilities.
292
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
23. Lease Liabilities (Contd.)
Amount as per the Statement of Cash Flows
Total cash outflow of leases
Non-current
(i) Lease Liabilities
Total
Current
(i) Lease Liabilities
Total
24. Other Financial Liabilities - At Amortised Cost
Non-current
(a) Security Deposits from Customers
(b) Guarantee Commission Obligation
Total
Current
(a) Current Maturities of Non-current Borrowings (Refer Note 22)
(b) Interest accrued but not due on Borrowings
(c)
(d) Investor Education and Protection Fund shall be credited by the following amounts namely: **
Interest accrued but not due on Borrowings from Related Party
Unpaid Dividend
Unpaid Matured Deposits
Unpaid Matured Debentures
(e) Other Payables
K crore
For the year ended
31st March, 2020
29.34
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
237.03
237.03
41.82
41.82
Nil
Nil
Nil
Nil
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
9.48
5.12
14.60
1,764.02
202.23
Nil
22.56
Nil
0.09
33.53
9.23
42.76
1,971.00
189.09
0.38
22.01
0.03
0.09
Payables for capital supplies and services
Security deposits from electricity consumers
Security deposits from others
Financial Guarantee Obligation towards lenders of Jointly Controlled Entity [Refer Note 7(10)(b)]
Other Financial Liabilities
252.33
216.72
6.47
103.74
133.57
Total
2,895.43
** Includes amounts outstanding aggregating C 1.48 crore (31st March, 2019 - C 1.25 crore) for more than seven years pending
disputes and legal cases.
350.18
234.48
6.74
Nil
41.32
2,621.62
25. Deferred Tax Liabilities (Net)
(Refer Note 35)
Deferred Tax Assets
Deferred Tax Liabilities
Net Deferred Tax Liabilities
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
940.99
1,248.24
307.25
1,024.21
1,607.70
583.49
293
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
26. Provisions
Accounting Policy
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.
294
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
26. 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 Company in respect of services provided by employees up to the reporting
date.
Non-current
Provision for Employee Benefits
Compensated Absences
Post-Employment Medical Benefits [Refer Note 26 (2.1) and (2.3)]
Other Defined Benefit Plans [Refer Note 26 (2.1) and (2.3)]
Other Employee Benefits
Total
Current
Provision for Employee Benefits
Compensated Absences
Post-Employment Medical Benefits [Refer Note 26 (2.1) and (2.3)]
Other Defined Benefit Plans [Refer Note 26 (2.1) and (2.3)]
Other Employee Benefits
Total
Employee Benefit Plans
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
87.99
59.12
63.49
11.86
80.71
45.81
48.99
20.04
222.46
195.55
6.17
2.09
53.21
0.55
62.02
5.00
1.80
6.09
1.85
14.74
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 ₹ 9.32 crore (31st March, 2019 - ₹ 9.19 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
295
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
26. Provisions (Contd.)
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 ₹ 10.52 crore which has been provided as
an expenditure during the year.
In terms of guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of Provident
fund liability based on the assumptions listed and determined the short fall of ₹ 10.52 crore as at 31st March, 2020
(31st March, 2019 - ₹ 8.27 crore)
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 (₹ crore)
The movements in the net defined benefit obligations are as follows:
31st March, 2020
31st March, 2019
8.50% p.a.
6.50% p.a.
21.15
10.52
8.65% p.a.
7.40% p.a.
19.18
8.27
Present value of
obligation
K crore
Fair value of plan
assets
K crore
Funded Plan:
Balance as at 1st April, 2018
Current service cost
Interest Cost/(Income)
Amount recognised in Statement of Profit and Loss
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income)
Actuarial (gains)/losses arising from changes in 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
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2019
Balance as at 31st March, 2019
Current service cost
Interest Cost/(Income)
Amount recognised in Statement of Profit and Loss
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income)
Actuarial (gains)/losses arising from changes in demographic assumptions
Actuarial (gains)/losses arising from changes in financial assumptions
Actuarial (gains)/losses arising from experience
296
Net
Amount
K crore
0.59
20.75
6.67
27.42
710.60
Nil
50.70
50.70
10.83
(10.83)
Nil
Nil
Nil
10.83
19.74
44.89
(90.53)
5.81
752.04
752.04
Nil
57.21
57.21
(40.00)
Nil
Nil
Nil
Nil
4.46
6.37
Nil
(19.74)
Nil
Nil
Nil
8.27
8.27
22.02
(0.87)
21.15
40.00
(1.59)
(3.30)
13.84
711.19
20.75
57.37
78.12
Nil
Nil
4.46
6.37
10.83
Nil
44.89
(90.53)
5.81
760.31
760.31
22.02
56.34
78.36
Nil
(1.59)
(3.30)
13.84
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements 26. Provisions (Contd.)
Funded Plan:
Amount recognised in Other Comprehensive Income
Employer contribution
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2020
Gratuity
Present value of
obligation
K crore
Fair value of plan
assets
K crore
8.95
Nil
49.34
(98.17)
8.97
807.76
(40.00)
21.13
49.34
(98.17)
8.97
750.52
Net
Amount
K crore
48.95
(21.13)
Nil
Nil
Nil
57.24
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:
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, 2020
31st March, 2019
6.50% p.a.
7.40% p.a.
7% p.a.
5% p.a.
6% p.a.
0.50% p.a.
2% p.a.
0.50% p.a.
3% p.a.
7% p.a.
5% p.a.
2.50% p.a.
0.50% p.a.
1% p.a.
0.50% p.a.
3% p.a.
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
Indian Assured Lives
Mortality (2006-08)
(modified) Ult
8% p.a.
8% p.a.
297
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 26. Provisions (Contd.)
2.3
The amounts recognised in the Standalone Ind AS financial statements and the movements in the net
defined benefit obligations over the year are as follows:
Funded Plan:
Balance as at 1st April, 2018
Current 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
Add/(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
Balance as at 31st March, 2019
Balance as at 31st March, 2019 *
Current 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
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
Balance as at 31st March, 2020 *
* Net asset is classified as "Other Current Assets".
Present value of
obligation
K crore
Fair value of plan
assets
K crore
237.80
15.04
18.24
(0.58)
32.70
Nil
Nil
5.79
15.97
Nil
21.76
(30.49)
(1.52)
0.58
260.83
260.83
15.80
20.72
1.30
37.82
Nil
(2.27)
16.61
(0.95)
(0.21)
13.18
(35.80)
(1.05)
(1.08)
273.90
(264.21)
Nil
(20.34)
Nil
(20.34)
4.26
Nil
Nil
Nil
Nil
4.26
Nil
Nil
Nil
(280.29)
(280.29)
Nil
(20.74)
Nil
(20.74)
(8.32)
Nil
Nil
Nil
Nil
(8.32)
Nil
Nil
Nil
(309.35)
Net
Amount
K crore
(26.41)
15.04
(2.10)
(0.58)
12.36
4.26
Nil
5.79
15.97
Nil
26.02
(30.49)
(1.52)
0.58
(19.46)
(19.46)
15.80
(0.02)
1.30
17.08
(8.32)
(2.27)
16.61
(0.95)
(0.21)
4.86
(35.80)
(1.05)
(1.08)
(35.45)
298
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements 26. Provisions (Contd.)
Unfunded:
Post Employment Medical Benefits
The Company provides certain post-employment health care benefits to superannuated employees at some of its locations.
In terms of the plan, the retired employees can avail free medical check-up and medicines at Company's facilities.
Pension (including Director pension)
The Company operates a defined benefit pension plan for employees who have completed 15 years of continuous service.
The plan provides benefits to members in the form of a pre-determined 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.
Unfunded Plan:
Balance as at 1st April, 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
Add/(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
Balance as at 31st March, 2019
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
Amount
K crore
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
102.69
5.24
Nil
13.21
9.15
0.07
27.67
299
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
26. Provisions (Contd.)
Unfunded Plan:
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
Balance as at 31st March, 2020
Employee Benefit Plans
Amount
K crore
(4.31)
11.36
(9.48)
0.41
(2.02)
(7.19)
Nil
(0.48)
120.67
2.4
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:
Change in assumption
Increase in assumption
Decrease in assumption
31st
March,
2020
31st
March,
2019
0.50%
0.50%
1 year
0.50%
0.50%
0.50%
1 year
0.50%
Decrease by
Increase by
Decrease by
Increase by
31st
March,
2020
K crore
15.83
11.32
5.43
4.81
31st
March,
2019
K crore
15.23
11.91
4.09
3.59
31st
March,
2020
K crore
17.19
10.70
5.35
4.30
31st
March,
2019
K crore
16.51
11.22
4.00
3.22
Increase by
Decrease by
Increase by
Decrease by
Discount rate
Salary/Pension growth rate
Mortality rates
Healthcare cost
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.
These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk and Salary
Risk.
Investment Risk The present value of the defined benefit plan liability is calculated using a discount rate which is
Interest Risk
Longevity Risk
Salary Risk
determined by reference to market yields at the end of the reporting period on government bonds.
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
an increase in the return on the plan debt investments.
The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
300
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
26. Provisions (Contd.)
2.5
The expected maturity analysis of undiscounted defined benefit obligation is as follows:
Funded - Provident Fund
Funded - Gratuity
Unfunded
31st March, 2020
K crore
31st March, 2019
K crore
31st March, 2020
K crore
31st March, 2019
K crore
31st March, 2020
K crore
31st March, 2019
K crore
Within 1 year
Between 1 - 2 years
Between 2 - 3 years
Between 3 - 4 years
Between 4 - 5 years
Beyond 5 years
67.02
105.84
96.20
85.16
84.05
413.74
53.15
81.42
85.81
80.45
71.29
365.06
20.87
33.66
32.08
30.55
34.41
21.75
32.76
34.02
31.99
31.86
167.80
176.73
8.85
9.08
9.16
9.29
9.15
65.39
8.58
9.07
9.11
9.21
9.41
50.58
The weighted average duration of the defined benefit obligation is 7.4 years (31st March, 2019 - 8.1 years).
The contribution expected to be made by the Company during the financial year 2020-21 is ₹ 23.01 crore.
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
Others
Cash & Cash Equivalents
Provident Fund
Gratuity
As at 31st March, 2020
As at 31st March, 2019
As at 31st March, 2020
K crore
%
K crore
30.02
195.14
405.28
4%
26%
54%
13.57
276.99
339.32
%
2%
37%
45%
K crore
58.78
129.93
89.70
%
19%
42%
29%
As at 31st March, 2019
K crore
%
56.07
60.07
103.77
20%
21%
37%
120.08
750.52
16%
100%
122.16
752.04
16%
100%
30.94
309.35
10%
100%
60.38
280.29
22%
100%
301
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
27. Other Liabilities
Non-current
Consumers' Benefit Account (Refer Note 39a.)
Deferred Revenue - Service Line Contributions from Consumers
Deferred Rent Liability
Total
Current
Statutory Liabilities
Advance from Customers/Public Utilities
Statutory Consumer Reserves (Refer Note 39a.)
Liabilities towards Consumers
Other Liabilities
Total
28. Current Borrowings - At Amortised Cost
Unsecured
From Banks
(a) Term Loans
(i) Repayable on Demand
(ii) Others
(b) Bank Overdraft - Repayable on Demand
From Related Parties
From Others
Commercial Paper [maximum amount outstanding during the year is C 6,700 crore
(31st March, 2019 - C 6,550 crore)]
Secured
From Banks
(a) Term Loans
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
Nil
115.91
45.43
161.34
121.97
149.68
168.00
60.76
2.46
502.87
21.94
116.87
44.73
183.54
156.79
117.16
561.76
11.50
1.91
849.12
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
500.00
90.00
1.05
105.45
800.00
200.00
2.19
Nil
5,455.81
6,152.31
5,729.61
6,731.80
60.00
60.00
Nil
Nil
6,212.31
6,731.80
Notes:
1.
2.
The rate of interest for term loans from banks ranges from 8.00% to 9.40% and loan from others ranges from 5.56% to 8.04%.
The term loan mentioned in (a) above have been secured by pari passu first charge over all current assets of the Company, present
and future, except for specific wind assets.
29. Current Tax Liabilities
Income Tax Payable (Net)
Total
302
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
107.67
107.67
107.67
107.67
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone 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 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.
(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.
(vii) In the regulated operations of the Company where tariff recovered from consumers is determined on cost plus return
on equity, the Income tax cost is pass through cost and accordingly the Company recognizes Deferred tax recoverable/
payable against any Deferred tax expense/ income. The same is included in 'Revenue from Operations' in case of
Generation and Transmission Divisions.
303
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
30. 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): Income to be adjusted in future tariff determination (Net)
Add/(Less): Income to be adjusted in future tariff determination (Net) in respect of earlier years
(Refer Note 19)
Add/(Less): Deferred Tax Recoverable / (Payable) (Refer Note 3.11.3)
For the year ended
31st March, 2020
K crore
6,410.55
(198.98)
For the year ended
31st March, 2019
K crore
6,479.75
255.34
5.49
31.41
6,248.47
(182.31)
322.42
6,875.20
(b) Revenue from Power Supply - Assets Under Finance Lease
1,051.27
1,030.64
(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
140.71
125.03
88.91
86.70
12.15
97.60
7.99
15.22
1.86
6.25
14.66
41.30
197.03
17.14
62.72
7.46
15.39
2.21
3.89
0.90
27.97
137.68
Total
7,726.39
8,255.25
Note:
Revenue from operations for the year ended 31st March, 2019 includes Regulatory Assets on Deferred Tax Liability expected to be
recovered from customers amounting to ₹ 272.00 crore recognised pursuant to extension of Power Purchase Agreement for its generating
plants for five years w.e.f 1st April, 2019.
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, 2020
K crore
For the year ended
31st March, 2019
K crore
7,590.18
38.28
7,628.46
8,112.09
37.08
8,149.17
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.
The aggregate value of performance obligations that are partially unsatisfied as at 31st March, 2020, other than those
meeting the exclusion criteria mentioned above is ₹ 18.59 crore (31st March, 2019 - ₹ Nil). The Company expects to recognise
it as revenue within next one year.
304
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
30. Revenue from Operations (Contd.)
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.
Nature of Goods/Services
Revenue from Contracts with
Customers
Other than revenue from
Contracts with Customers
Total
For the year
ended
31st March,
2020
K crore
For the year
ended
31st March,
2019
K crore
For the year
ended
31st March,
2020
K crore
For the year
ended
31st March,
2019
K crore
For the year
ended
31st March,
2020
K crore
For the year
ended
31st March,
2019
K crore
Generation of Power - Thermal and Hydro
Sale of Power
Sale of Power from Assets Under Lease
Project/Operation Management Services
Income from Finance Lease
Others
Total (A)
Generation of Power - Wind and Solar
Sale of Power
Others
Total (B)
Transmission and Distribution of Power
Transmission of Power
Distribution of Power
Net Movement in Regulatory Deferral Balances
Project/Operation Management Services
Others
Total (C)
Others (D)
1,588.73
1,051.27
100.94
Nil
21.70
2,762.64
2,344.24
1,030.64
109.59
Nil
2.21
3,486.68
95.24
14.64
109.88
99.24
0.89
100.13
775.15
3,789.37
Nil
33.83
44.45
4,642.80
661.08
3,770.62
Nil
13.04
5.21
4,449.95
30.76
34.83
Unallocable Revenue (E)
44.10
40.50
Nil
Nil
Nil
88.91
15.52
104.43
Nil
8.02
8.02
Nil
Nil
(651.40)
Nil
20.76
(630.64)
Nil
3.00
Nil
Nil
Nil
86.70
31.28
117.98
1,588.73
1,051.27
100.94
88.91
37.22
2,867.07
2,344.24
1,030.64
109.59
86.70
33.49
3,604.66
Nil
4.65
4.65
95.24
22.66
117.90
99.24
5.54
104.78
Nil
Nil
(146.58)
Nil
16.96
(129.62)
775.15
3,789.37
(651.40)
33.83
65.21
4,012.16
661.08
3,770.62
(146.58)
13.04
22.17
4,320.33
Nil
30.76
34.83
3.57
47.10
44.07
Revenue from Continued Operations
(A + B + C +D + E)
7,590.18
8,112.09
(515.19)
(3.42)
7,074.99
8,108.67
Revenue from Discontinued Operations
343.74
143.59
Nil
Nil
343.74
143.59
Reconciliation of Revenue
Revenue from Continued Operations as per above table
Net Movement in Regulatory Deferral Balances
Total Revenue from Operations
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
7,074.99
(651.40)
7,726.39
8,108.67
(146.58)
8,255.25
305
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 30. Revenue from Operations (Contd.)
Contract Balances
Contract Assets
Recoverable from Consumers
Non-current
Current
Total Contract Assets
Contract liabilities
Liabilities towards Consumers
Current
Total Contract Liabilities
Receivables
Trade Receivables (Gross)
Unbilled Revenue for passage of time
Recoverable from Consumers
(Less): Allowances for Doubtful Debts
Net Receivables
Total
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
960.84
Nil
960.84
404.79
787.00
1,191.79
60.76
60.76
1,151.39
83.41
221.45
(42.71)
1,413.54
2,435.14
11.50
11.50
1,488.95
41.56
Nil
(46.75)
1,483.76
2,687.05
Contract Assets
Contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract assets
are transferred to receivables when the rights become unconditional.
Contract Liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company
transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is
due (whichever is earlier). Contract liabilities are recognised as revenue when the performance obligation is satisfied.
Significant changes in the contract assets and the contract liabilities balances during the year are as follows:
Particulars
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 in respect of earlier years (Net)
Revenue recognised during the year
Refund to customers (including Company's distribution business)
Deferred tax recoverable/(payable)
Deferred tax recoverable/(payable) on account of New Tax Regime [Refer Note 35(i)]
Others
Closing Balance
Recoverable from consumers
Liabilities towards consumers
306
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
1,191.79
(11.50)
1,180.29
(198.98)
5.49
Nil
48.87
31.41
(167.00)
Nil
(280.21)
960.84
(60.76)
900.08
812.36
(404.22)
408.14
255.34
(182.31)
100.00
288.70
322.42
Nil
(12.00)
772.15
1,191.79
(11.50)
1,180.29
(A)
(B)
(A + B)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone 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, 2020
K crore
For the year ended
31st March, 2019
K 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 Assets - Subsidiaries
Other Interest
(ii) Interest on income-tax Refund
(b) Dividend Income
From Non-current Investments
Subsidiaries
Joint Ventures
Associates
Others - Equity Investments Designated as FVTOCI
(c) Gain/(Loss) on Investments
Gain on Sale/Fair Value of current investment measured at FVTPL
Gain on Sale of Investment in non-current investment measured at Amortised cost
(d) Other Non-operating Income
Guarantee Commission from Subsidiaries and Joint Ventures (Refer Note below)
Gain/(Loss) on Disposal of Property, Plant and Equipment (Net)
Delayed Payment Charges
Other Income
Total
Note:
4.82
65.69
9.90
7.53
18.58
Nil
106.52
13.03
2.73
2.93
10.42
20.40
44.39
4.01
84.88
Nil
119.55
84.88
267.18
85.09
9.68
6.86
368.81
13.41
9.06
22.47
60.63
3.52
6.61
1.03
71.79
283.40
85.40
9.68
5.43
383.91
6.29
0.88
7.17
20.95
12.72
6.34
0.38
40.39
582.62
516.35
During the year, pursuant to Advance Pricing Agreement with Income Tax Department, the Company has recognised
guarantee commission income of ₹ 38.30 crore from its subsidiaries and joint ventures pertaining to earlier years.
307
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
32. Employee Benefits Expense
Salaries and Wages
Contribution to Provident Fund
Contribution to Superannuation Fund
Retiring Gratuities
Compensated Absences
Pension Scheme
Staff Welfare Expenses
Less:
Employee Cost Capitalised
Employee Cost Inventorised
Total
33. Finance Costs
Accounting Policy
For the year ended
31st March, 2020
K crore
468.42
21.15
9.32
17.08
24.96
10.78
93.58
645.29
For the year ended
31st March, 2019
K crore
500.72
27.42
9.19
12.36
22.15
13.23
88.51
673.58
24.59
9.99
34.58
26.96
9.05
36.01
610.71
637.57
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:
On Borrowings - At Amortised Cost
Interest on Debentures
Interest on Loans - Banks, Financial Institutions and Commercial Papers
Interest on Loans - Subsidiaries
Others
Interest on Consumer Security Deposits - At Amortised cost
Interest on Lease Liabilities - At Amortised cost
Other Interest and Commitment Charges (Refer Note 39b.)
Less: Interest Capitalised
(b) Other Borrowing Costs:
Other Finance Costs
Foreign Exchange Loss/(Gain) on Borrowings (Net)
Total
Note:
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
412.38
1,049.22
4.91
21.99
17.56
0.48
1,506.54
16.44
1,490.10
20.28
Nil
20.28
458.37
923.21
3.98
20.12
Nil
92.53
1,498.21
22.21
1,476.00
21.64
2.71
24.35
1,510.38
1,500.35
The weighted average capitalisation rate on the Company's general borrowings is 8.23 % p.a. (31st March, 2019 - 8.63 % p.a.).
308
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
34. Other Expenses
Consumption of Stores and Oil
Rental of Land, Buildings, Plant and Equipment
Repairs and Maintenance -
(i) To Buildings and Civil Works
(ii) To Machinery and Hydraulic Works
(iii) To Furniture and Vehicles
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
Bad Debts
Net Loss on Foreign Exchange
Allowance for Doubtful Debts and Advances (Net)
Donations [Refer Note (iii) below]
Legal Charges
Corporate Social Responsibility Expenses [Refer Note (ii) below]
Transfer to Statutory Consumer Reserve
Miscellaneous Expenses
Total
(i)
Payment to the auditors
For Statutory Audit
For Taxation Matters
For Other Services
For Reimbursement of Expenses
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
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
36.61
3.89
96.09
211.60
4.63
312.32
67.62
29.37
86.58
16.84
18.60
10.38
5.14
93.71
6.05
10.59
(0.19)
Nil
21.61
3.80
17.00
16.77
23.58
29.62
81.52
200.26
4.15
285.93
52.71
21.48
106.10
13.42
22.56
19.65
5.09
106.24
Nil
11.40
19.11
20.00
24.93
12.66
16.00
11.39
756.69
801.87
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
3.54
0.12
0.55
0.15
0.78
5.14
3.54
0.13
0.48
0.22
0.72
5.09
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
3.16
0.64
3.80
12.05
0.61
12.66
309
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 34. Other Expenses (Contd.)
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, 2020
K crore
For the year ended
31st March, 2019
K crore
3.04
Nil
3.80
12.65
Nil
12.66
(iii) Donation
Donation of ₹ Nil was given to Progressive Electoral Trust (31st March, 2019 - ₹ 20.00 crore).
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.
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). 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 Standalone
Ind AS 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. 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.
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 (Section 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 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 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.
310
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
35.
(i)
1.
Income taxes (Contd.)
Income Tax Expenses
Income taxes recognised in the statement of profit and loss (Continuing Operations)
Current tax
Deferred tax
Deferred tax relating to earlier years
Remeasurement of Deferred Tax on account of New Tax Regime (Net) (Refer Note below)
Total income tax expense
31st March, 2020
K crore
18.61
73.08
(24.51)
(275.00)
(207.82)
31st March, 2019
K crore
110.88
331.58
10.00
Nil
452.46
Note:
Pursuant to the Taxation Laws (Amendment) Act, 2019 which is effective from 1st April, 2019, domestic companies have the
option to pay income tax at 22% plus applicable surcharge and cess (‘New Tax Regime’) subject to certain conditions. Based
on the Company's assessment of the expected year of transition to the New Tax Regime, the Company has remeasured
the deferred tax liabilities and also reassessed the recoverability of Minimum Alternate Tax (‘MAT’). Accordingly, the
Company has recognised deferred tax income of ₹ 275.00 crore after adjusting the MAT credit write off. Further, the
Company has also remeasured its regulatory asset balance against deferred tax liabilities and has recognised expense of
₹ 98.00 crore pertaining to distribution business and ₹ 167.00 crore for generation and transmission business.
2.
Income taxes recognised in the statement of profit and loss (Discontinued Operations)
Current tax
Deferred tax
Total income tax expense
31st March, 2020
K crore
Nil
(32.41)
(32.41)
31st March, 2019
K crore
(71.92)
5.94
(65.98)
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 Discontinuing Operation
Profit/(Loss) Before Tax
Income tax expense (Refer Note 1 below)
Add/(Less) tax effect on account of :
Provision for impairment and adjustment of earlier capital loss on sale of investments
Non-Deductible expenses
Reversal of deferred tax during tax holiday period
Unrecognised tax credit (MAT) for the current year
Remeasurement of deferred tax on account of New Tax Regime (Net)
Exempt income
Reversal of impairment of non-current investments and related obligations
True up impact basis income tax return
Income taxed at lower rate
Income not taxable during tax holiday period
Tax benefit on interest on perpetual securities recognised in other equity (Refer Note 3.11.2)
Change in presentation of 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, 2020
K crore
31st March, 2019
K crore
350.53
(442.64)
(92.11)
2,347.00
(191.82)
2,155.18
(32.19)
753.11
122.63
88.57
34.08
15.38
(275.00)
(83.27)
(82.12)
(24.51)
(3.80)
Nil
Nil
Nil
(240.23)
(207.82)
(32.41)
(240.23)
(149.71)
29.87
41.08
23.27
Nil
(85.74)
Nil
10.00
(9.19)
(19.11)
(60.12)
(146.98)
386.48
452.46
(65.98)
386.48
311
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
35.
Income taxes (Contd.)
Notes:
1. The tax rate used for the years 2019-20 and 2018-19 reconciliations above is the corporate tax rate of 34.944% payable by corporate
entities in India on taxable profits under the Indian tax law.
2. The rate used for calculation of Deferred tax for 2019-20 is 34.944% and 25.17% for deferred tax expected to be reversed in the New Tax
Regime and 34.944% for 2018-19, being statutory enacted rates at Balance Sheet date.
3.
Income tax recognised in other comprehensive income
31st March, 2020
K crore
31st March, 2019
K crore
(0.77)
(0.77)
(17.40)
Nil
(17.40)
(18.17)
(18.17)
(6.99)
(6.99)
Nil
0.02
0.02
(6.97)
(6.97)
31st March, 2020
K crore
31st March, 2019
K crore
Nil
Nil
(0.40)
(0.40)
31st March, 2020
K crore
31st March, 2019
K crore
(18.17)
(18.17)
(7.37)
(7.37)
As at
31st March, 2020
K crore
As at
31st March, 2019
K crore
940.99
1,248.24
307.25
1,024.21
1,607.70
583.49
Current Tax
Remeasurement of defined benefit obligation
Deferred tax
Remeasurements of defined benefit obligation
Net fair value gain on investments in equity shares at FVTOCI
Total income tax recognised in other comprehensive income
Items that will not be reclassified to statement of profit and loss
4.
Income tax recognised in other comprehensive income (Discontinuing Operations)
Current Tax
Remeasurement of defined benefit obligation
5.
Bifurcation of the total income tax recognised in other comprehensive income into:
Items that will not be reclassified to statement of profit and loss
(ii)
Deferred Tax
Deferred Tax Assets
Deferred Tax Liabilities
Deferred Tax Liabilities (Net)
312
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
35.
Income taxes (Contd.)
2019-20
Opening
balance
Recognised in profit
or loss (including
discontinued
operation)
Recognised in other
comprehensive Income
(including discontinued
operation)
Deferred tax assets in relation to
Allowance for Doubtful Debts, Deposits and Advances
Provision for Employee Benefits and Others
Minimum Alternate Tax Credit
Capital loss on sale of investments and indexation benefit
available on investments
Lease Liability
Business Loss or Unabsorbed Depreciation
Deferred tax liabilities in relation to
Property, Plant and Equipment (including finance leases)
Right of use asset
Others
29.24
51.84
517.51
425.62
Nil
Nil
1,024.21
1,578.04
Nil
29.66
1,607.70
(2.39)
(2.87)
(80.00)
(45.65)
12.40
17.89
(100.62)
(344.56)
10.00
(24.90)
(359.46)
Nil
17.40
Nil
Nil
Nil
Nil
17.40
Nil
Nil
Nil
Nil
Deferred Tax Liabilities (Net)
583.49
(258.84)
(17.40)
2018-19
Deferred tax assets in relation to
Allowance for Doubtful Debts, Deposits and Advances
Provision for Employee Benefits and Others
Minimum Alternate Tax Credit
Capital loss on sale of investments and indexation benefit
available on investments
Deferred tax liabilities in relation to
Property, Plant and Equipment (including finance leases)
Others
Opening
balance
Recognised in profit
or loss (including
discontinued
operation)
Recognised in other
comprehensive Income
(including discontinued
operation)
23.96
60.92
517.51
708.02
1,310.41
1,516.72
29.68
1,546.40
5.28
(9.08)
Nil
(282.40)
(286.20)
61.32
Nil
61.32
Nil
Nil
Nil
Nil
Nil
Nil
(0.02)
(0.02)
K crore
Closing
balance
26.85
66.37
437.51
379.97
12.40
17.89
940.99
1,233.48
10.00
4.76
1,248.24
307.25
K crore
Closing
balance
29.24
51.84
517.51
425.62
1,024.21
1,578.04
29.66
1,607.70
Deferred Tax Liabilities (Net)
235.99
347.52
(0.02)
583.49
Notes:
1. During the year ended 31st March, 2020, the management has reassessed the recoverability of unrecognised MAT credit and MAT credit
amounting to ₹ 97.52 crore (31st March, 2019 - ₹149.19 crore) has not been recognised.
2. Considering the uncertainity over the realisibility, the Company has not recognized deferred tax asset to the extent of ₹ 360.17 crore
(31st March, 2019 - ₹ 306.94 crore) on capital loss on sale of investments and indexation benefits on investments classified as asset held for sale.
3. The expiry of unrecognised deferred tax asset is as detailed below:
As at 31st March, 2020
Unrecognised deferred tax assets
Within one
year
Greater than
one year, less
than five years
Greater than
five years
No expiry date
Capital Loss on sale of investment and indexation benefit
MAT credit
Total
Nil
Nil
Nil
Nil
Nil
Nil
360.17
97.52
457.69
Nil
Nil
Nil
K crore
Closing
balance
360.17
97.52
457.69
313
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
35.
Income taxes (Contd.)
As at 31st March, 2019
Unrecognised deferred tax assets
Within one
year
Greater than
one year, less
than five years
Greater than
five years
No expiry date
Capital Loss on sale of investment and indexation benefit
MAT credit
Total
Nil
Nil
Nil
Nil
Nil
Nil
306.94
149.19
456.13
Nil
Nil
Nil
C crore
Closing
balance
306.94
149.19
456.13
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:
(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@
(f) The amount of further interest due and payable even in the succeeding years, until such date
when the interest dues as above are actually paid@
C crore
31st March, 2020
K crore
7.72
Nil
31st March, 2019
K crore
3.96
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
@ 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
(a) Estimated amount of Contracts remaining to be executed on capital account and not provided for.
(b) Other Commitments
(i) The Company has given an undertaking to the Bankers of Cennergi Pty. Ltd., wherein it would
31st March, 2020
K crore
413.08
31st March, 2019
K crore
511.07
ensure that Cennergi Pty. Ltd. would satisfy its commitment to the Bank.
0.05
0.05
(ii)
In terms of the Sponsor Support agreement entered into between the Company, Coastal Gujarat Power Ltd. (CGPL)
and INR term lenders (SBI led 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 ₹ 15,629.14
crore (31st March, 2019 - ₹ 15,579.14 crore) to CGPL.
(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.
(iv)
(v)
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.
314
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
38. Contingent liabilities
Contingent liabilities including:
31st March, 2020
K crore
31st March, 2019
K crore
(a) Claims against the Company not probable and hence not acknowledged as debts
consists of
(i) Demand disputed by the Company relating to Service tax on transmission charges received
for July 2012 to June 2017.
(a) Disallowance of costs recoverable from consumers by Maharashtra Electricity
(ii)
Regulatory Commission in the tariff true up order.
(b) 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.
(iii) Way Leave fees (including interest) claims disputed by the Company relating to rates charged.
(iv)
Interest and Penalty pertaining to Custom duty claims disputed by the Company relating to
applicability and classification of coal.
(v) Access Charges demand for laying underground cables.
(vi) Rates, Cess, Excise and Custom Duty claims disputed by the Company.
(vii) Compensation disputed by private land owners on private land acquired under the
provisions of Maharashtra Industrial Development Act, 1961.
(viii) Octroi claims disputed by the Company in respect of octroi exemption claimed by the
Company.
(ix) Other claims against the Company not acknowledged as debts.
(x) Demand towards charges for unscheduled interchange (UI) of power [Refer Note (d) below]
375.29
359.85
269.00
43.18
34.49
30.14
26.63
22.00
5.03
34.51
Nil
375.29
261.00
269.00
39.18
34.49
Nil
24.97
22.00
5.03
33.59
215.02
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.
1,200.12
1,279.57
(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, 2019 - ₹ Nil).
31st March, 2020
K crore
31st March, 2019
K crore
50.93
456.61
31st March, 2020
K crore*
31st March, 2019
K crore
(c) Indirect exposures of the Company:
Guarantees given:
(i) Coastal Gujarat Power Ltd.
(ii) Khopoli Investments Ltd.
(iii) Bhira Investments Pte. Ltd.
(iv) Trust Energy Resources Pte. Ltd.
(v) Energy Eastern Pte. Ltd.
7,544.17
1,676.21
7,836.54
1,683.52
(equivalent to USD
221.89 million)
1,462.64
(equivalent to USD
193.62 million)
348.31
(equivalent to USD
46.11 million)
Nil
(equivalent to
USD Nil)
(equivalent to USD
243.42 million)
1,502.18
(equivalent to USD
217.20 million)
624.53
(equivalent to USD
90.30 million)
408.05
(equivalent to USD
59.00 million)
315
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
38. Contingent liabilities (Contd.)
(vi) Tata Power Renewable Energy Ltd.
(vii) Tata Power Solar Systems Ltd.
(viii) Chirasthaayee Saurya Ltd.
(ix) Walwhan Renewable Energy Ltd.
(x) Walwhan Solar TN Ltd.
(xi) Walwhan Wind RJ Ltd.
31st March, 2020
K crore*
1,612.53
Nil
272.12
1,450.51
126.56
86.03
31st March, 2019
K crore
2,075.00
295.92
272.11
1,464.99
Nil
Nil
* The exposure is considered to the extent of borrowings outstanding (including accrued interest) in the financial
statements of the respective subsidiaries.
(d)
In the previous year, Maharashtra State Electricity Distribution Company Limited (MSEDCL) had raised a demand of
₹ 215.02 crore for determination of fixed charges for unscheduled interchange of power. The Company had filed a
petition against the said demand. During the year, MERC has turned down methodology adopted by MSEDCL for
determination of such charges and ordered MSEDCL to submit certain details to Maharashtra State Load Dispatch
Centre (MSLDC) to determine the revised charges based on principles suggested in the Order. Considering the same,
currently, the amount of charges payable is not ascertainable and hence, no provision has been recognized during the
year. Further, in case of unfavourable outcome, the Company believes that it will be allowed to recover the same from
consumers through future adjustment in tariff.
(e) The proposed Social Security Code, 2019, when promulgated, would subsume labour laws including Employees'
Provident Funds and Miscellaneous Provisions Act and amend the definition of wages on which the organisation and
its employees are to contribute towards Provident Fund. The Company believes that there will be no significant impact
on its contributions to Provident Fund due to the proposed amendments. There were many interpretative issues
relating to the Supreme Court (SC) judgement dated 28th February, 2019 on Provident Fund (PF) as regards definition
of PF wages and inclusion of certain allowances for the purpose of PF contribution, as well as effective date of its
applicability. Having consulted and evaluated impact on its financial statement, the company has implemented the
changes as per clarifications vide the Apex Court judgement dated 28th February, 2019, with effect from 1st March 2019
i.e., immediate after pronouncement of the judgement, as part of statutory compliance. The company will evaluate its
position and act, in case there is any other interpretation of the same issued in future either in form of Social Security
Code or by authorities concerned under the Employees' Provident Funds and Miscellaneous Provisions Act.
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 settlement
a. With respect to Standby litigation with Adani Electricity Mumbai Limited (Adani Electricity), the Hon'ble Supreme
Court during the year ended 31st March, 2020 has upheld Appellate Tribunal for Electricity (APTEL) order dated
20th December, 2006 directing the Company to pay ₹ 354.00 crore along with the interest at 10% p.a. from 1st April,
2004 till the date of payment. In the past, in accordance with the Hon'ble Supreme Court directives the Company
has deposited ₹ 227.00 crore with the Registrar General of the Court which was withdrawn by Adani Electricity on
furnishing the required undertaking to the Court. Consequently, the Company has recognized an expense of ₹ 276.35
crore net of amount recoverable from customers including adjustment with consumer reserves.
b.
In the earlier years, the Company had received demands in respect of entry tax on imports of fuel for Trombay plant.
During the year ended 31st March, 2019, the Company has recognised provision of ₹ 345.00 crore (including interest
and provision for contingency of ₹ 78.00 crore and ₹ 45.00 crore respectively) towards settlement of entry tax demands
under the Amnesty scheme notified by the Government of Maharastra. Further during the year ended 31st March,
2020, the Company has received final settlement order under the said scheme and pursuant to the said order, the
Company has reversed the excess provision related to entry tax under the head ‘Cost of Fuel’ and corresponding
recovery from customers under the head ‘Revenue from Operations' amounting to ₹ 68.78 crore.
316
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
40. Earnings Per Share
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 Standalone
Ind AS financial statements by the Board of Directors.
Particulars
A. EPS - Continuing operations (before net movement in Regulatory Deferral
Balances)
Net Profit/ (Loss) from Continuing Operations (Refer Note 3.11.2)
Net movement in Regulatory Deferral Balances (Refer Note 3.11.3)
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime (Net)
[Refer Note 35(i)]
Income-tax attributable to Regulatory Deferral Balances (Refer Note 3.11.3)
Net movement in Regulatory Deferral Balances (Net of tax)
Net Profit/ (Loss) (before net movement in Regulatory Deferral Balances)
Less: Distribution on Perpetual Securities (Refer Note 3.11.2)
A
B
C
D
E=(B+C+D)
F=(A-E)
G
For the year ended
31st March, 2020
K crore*
For the year ended
31st March, 2019
K crore*
558.35
(651.40)
(98.00)
261.87
(487.53)
1,045.88
(171.00)
1,894.54
(146.58)
Nil
51.22
(95.36)
1,989.90
(171.00)
Profit/ (Loss) from Continuing Operations attributable to equity shareholders
(before net movement in Regulatory Deferral Balances)
H=(F+G)
874.88
1,818.90
Weighted average number of equity shares for Basic and Diluted EPS
270,76,05,570
270,76,05,570
EPS - Continuing Operations (before net movement in Regulatory Deferral
Balances)
- Basic and Diluted (In ₹)
3.23
6.72
B. EPS - Continuing Operations (after net movement in Regulatory Deferral
Balances)
Net Profit/ (Loss) from Continuing Operations (Refer Note 3.11.2)
Less: Distribution on Perpetual Securities (Refer Note 3.11.2)
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 ₹)
C. EPS - Discontinued operations
Net Profit/ (Loss) from Discontinued Operations
Weighted average number of equity shares for Basic and Diluted EPS
EPS - Discontinued Operations
- Basic and Diluted (In ₹)
558.35
(171.00)
1,894.54
(171.00)
387.35
1,723.54
270,76,05,570
270,76,05,570
1.44
6.36
(410.23)
270,76,05,570
(125.84)
270,76,05,570
(1.52)
(0.46)
317
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
40. Earnings Per Share (Contd.)
Particulars
D. EPS - Total Operations (after net movement in Regulatory Deferral Balances)
Net (Loss) / Profit from Total Operations
(after net movement in Regulatory Deferral Balances) (Refer Note 3.11.2)
Less: Distribution on Perpetual Securities (Refer Note 3.11.2)
Net Profit/ (Loss) from Total Operations attributable to equity shareholders
(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 ₹)
For the year ended
31st March, 2020
K crore*
For the year ended
31st March, 2019
K crore*
148.12
(171.00)
1,768.70
(171.00)
(22.88)
270,76,05,570
1,597.70
270,76,05,570
(0.08)
5.90
* All numbers are in ₹ crore except weighted average number of equity shares and Basic and Diluted EPS
41. Related Party Disclosures
Disclosure as required by Ind AS 24 - "Related Party Disclosures" is as follows:
Names of the related parties and description of relationship:
(a)
Related parties where control exists:
(i) Subsidiaries
1) Af-Taab Investment Company Ltd.
3)
Tata Power Trading Company Ltd.
5) NELCO Ltd.
7) Maithon Power Ltd.
2)
4)
6)
Tata Power Solar Systems Ltd.
Tata Power Green Energy Ltd.
Tatanet Services Ltd. **
8) Coastal Gujarat Power Ltd.
9)
Tata Power Renewable Energy Ltd.
10) TP Renewable Microgrid Ltd. (Formerly Industrial
11) Bhira Investments Pte. Ltd. (Formerly Bhira
12) Bhivpuri Investments Ltd.
Power Utility Ltd.)
Investments Ltd.)
13) Khopoli Investments Ltd.
14) Tata Power International Pte. Ltd.
15) Trust Energy Resources Pte. Ltd.
16) Energy Eastern Pte. Ltd.** (Merged with Trust Energy
17) NDPL Infra Ltd. **
Resources Pte. Ltd. w.e.f. 10th June, 2019)
18) Tata Power Jamshedpur Distribution Ltd.
19) PT Sumber Energi Andalan Tbk **
20) Supa Windfarm Ltd. **
21) TCL Ceramics Ltd. (Formerly Tata Ceramics Ltd.)
22) Nivade Windfarm Ltd. **
23) Poolavadi Windfarm Ltd. **
24) Walwhan Renewable Energy Ltd. **
25)
Indo Rama Renewables Jath Ltd. **
26) Walwhan Solar AP Ltd. **
27) Walwhan Urja Anjar Ltd. **
29) Walwhan Solar Raj Ltd. **
31) Walwhan Solar Energy GJ Ltd. **
33) MI MySolar24 Pvt. Ltd. **
35) Walwhan Solar MP Ltd. **
37) Walwhan Solar KA Ltd. **
39) Walwhan Solar RJ Ltd. **
41) Walwhan Solar TN Ltd. **
318
28) Northwest Energy Pvt. Ltd. **
30) Dreisatz MySolar24 Pvt. Ltd. **
32) Walwhan Energy RJ Ltd. **
34) Walwhan Solar MH Ltd. **
36) Walwhan Solar PB Ltd. **
38) Walwhan Wind RJ Ltd. **
40) Walwhan Solar BH Ltd. **
42) Walwhan Urja India Ltd. **
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
41. Related Party Disclosures (Contd.)
43) Clean Sustainable Solar Energy Pvt. Ltd. **
44) Chirasthaayee Saurya Ltd. **
45) Solarsys Renewable Energy Pvt. Ltd. **
46) Vagarai Windfarm Ltd. **
47) Nelco Network Products Ltd. **
49) TP Ajmer Distribution Ltd.
51) TP Solapur Ltd.**
** Through Subsidiary Companies
(ii) Employment Benefit Funds
48) Far Eastern Natural Resources LLC **
50) Tata Power Delhi Distribution Ltd.
52) TP Kirnali Ltd.**
1)
3)
Tata Power Superannuation Fund
2)
Tata Power Gratuity Fund
Tata Power Consolidated Provident Fund
(b)
Other related parties (where transactions have taken place during the year or previous year / balances outstanding) :
(i) Associates
1)
3)
5)
Tata Projects Ltd.
2)
Yashmun Engineers Ltd.
The Associated Building Co. Ltd.
4) Dagachhu Hydro Power Corporation Ltd.
Tata Communication Ltd. (ceased to be an
Associate w.e.f. 28th May, 2018)
6)
Panatone Finvest Ltd. (ceased to be an Associate w.e.f.
28th May, 2018)
7) Nelito Systems Ltd (ceased to be an Associate w.e.f.
6th June, 2019)
(ii) Joint Venture Companies
1)
3)
5)
Tubed Coal Mines Ltd.
Powerlinks Transmission Ltd.
PT Baramulti Sukessarana Tbk**
7) Adjaristsqali Netherlands BV**
9)
LTH Milcom Pvt. Ltd.
11) Renascent Power Ventures Pvt. Ltd. **
2) Mandakini Coal Company Ltd.
4)
6)
8)
Itezhi Tezhi Power Corporation
PT Antang Gunung Meratus**
PT Kaltim Prima Coal**
10)
Industrial Energy Ltd.
12) Dugar Hydro Power Ltd.
13) Prayagraj Power Generation Co. Ltd. ** (w.e.f. 12th
14) Cennergi Pty. Ltd. ** (ceased to be JV w.e.f.
December, 2019)
15) Adjaristsqali Georgia LLC **
** Joint Venture of Subsidiaries
31st March, 2020)
(c)
(i) Promoters holding more than 20% - 'Promoter'
1) Tata Sons Pvt. Ltd.
(ii) Subsidiaries and Jointly Controlled Entities of Promoter - Promoter Group (where transactions have taken place during
the year or previous year / balances outstanding) :
Ewart Investments Ltd.
Tata Industries Ltd. (ceased to be Subsidiary and
became a Joint Venture w.e.f. 27th March, 2019)
Tata Investment Corporation Ltd.
Tata Consultancy Services Ltd.
Tata Realty And Infrastructure Ltd.
1)
3)
5)
7)
9)
11)
Infiniti Retail Ltd.
2)
4)
6)
8)
Tata AIG General Insurance Company Ltd.
Tata Communications Ltd. (ceased to be an Associate and
became a Subsidiary w.e.f. 28th May, 2018)
Tata International Ltd.
Tata Ltd.
10) Tata Sky Ltd.
12) Ecofirst Services Ltd.
319
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
41. Related Party Disclosures (Contd.)
13) Tata Consulting Engineers Ltd.
15) Niskalp Infrastructure Services Ltd.
(Formerly Niskalp Energy Ltd.)
17) Tata Housing Development Company Ltd.
19) Tata Capital Financial Services Ltd.
21) Tata Teleservices (Maharashtra) Ltd.
23) Taj Air Ltd.
25) Progressive Electoral Trust
27) Tata Interactive Systems
29) THDC Management Services Ltd.
(Formerly THDC Facility Management Ltd.)
31) Tata Advanced Materials Ltd. (ceased to be
Subsidiary w.e.f. 27th March, 2019)
14) Tata Housing Development Co. Ltd.
Employees Provident Fund
16) Tata Consultancy Services Employees Provident Fund
18) Tata Projects Provident Fund Trust
20) Tata AIA Life Insurance Company Ltd.
22) Tata AG, Zug (ceased to be Subsidiary w.e.f. 21st
February, 2020)
24) Tata Teleservices Ltd.
26) Tata Advanced System Ltd.
28) Panatone Finvest Ltd.
30) Tata Communications Payment Solutions Ltd. (w.e.f.
28th May, 2018)
32) Tata Unistore Ltd. (Formerly Tata Industrial Services Ltd.)
(ceased to be a Subsidiary w.e.f. 27th March, 2019)
(d)
Key Management Personnel
1) N. Chandrasekaran
2)
Banmali Agrawala
Kesava Menon Chandrasekhar
3)
5)
7) Vibha U. Padalkar
9)
11) Ramesh N. Subramanyam - Chief Financial Officer
13) Deepak M. Satwalekar (ceased to be Director w.e.f.
Sanjay V. Bhandarkar
Praveer Sinha CEO and Managing Director
(w.e.f. 1st May, 2018)
Saurabh Agrawal
4)
6) Ashok Sinha (w.e.f. 2nd May, 2019)
8) Anjali Bansal
10) Hemant Bhargava
12) Hanoz Minoo Mistry - Company Secretary
14) Nawshir H. Mirza (ceased to be Director w.e.f.
12th August, 2019)
12th August, 2019)
15) Ashok Sethi (ceased to be COO and Executive Director
16) Anil Sardana - CEO and Managing Director
w.e.f. 30th April, 2019)
(ceased to be Director w.e.f. 30th April, 2018)
(e)
Relative of Key Managerial Personnel (where transactions
have taken place during the year or previous year /
balances outstanding) :
1) Neville Minoo Mistry (Brother of Hanoz Minoo Mistry -
Company Secretary)
(f)
Details of Transactions:
Sr.
No.
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds /
Trust
Promoter
Group
1) Purchase of goods/power (Net
of Discount Received on Prompt
Payment)
2) Sale of goods/power (Net of
Discount on Prompt Payment)
3) Purchase of fixed assets
4) Sale of fixed assets
5) Rendering of services
62.39
62.80
221.60
256.84
1.20
0.06
-
0.09
102.33
107.57
-
-
0.01
0.15
12.84
9.69
0.05
0.08
7.17
0.16
-
58.74
-
-
-
-
-
-
39.76
18.09
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.02
33.70
69.68
0.22
3.01
-
-
8.58
10.15
K crore
Promoter
-
-
-
-
-
-
0.07
-
1.25
0.98
320
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
41. Related Party Disclosures (Contd.)
Sr.
No.
Particulars
6) Receiving of services
7) Brand equity contribution
8) Contribution to Employee Benefit
Plans
9) Guarantee, collaterals etc. given
10) Guarantee, collaterals etc.
cancelled
11) Remuneration paid - short term
employee benefits
12) Long term employee benefits
paid
13) Short term employee benefits
paid
14) Interest income
15) Interest paid (including
distribution on unsecured
perpetual securities)
16) Dividend income
17) Dividend paid
18) Guarantee commission earned
19) Loan Taken
20) Loans given
21) Reversal of Impairment of
Investments and related
obligation
22) Equity contribution (includes
advance towards equity
contribution and perpetual
bonds)
K crore
Promoter
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds /
Trust
Promoter
Group
4.03
6.98
-
-
-
-
5,743.33 $
7,616.96 $
7,717.53 $
6,029.09 $
-
-
-
-
-
-
18.57
44.39
4.91
3.98
267.18
283.40
-
-
60.63
19.77
5,400.65
564.10
3,244.98
2,358.66
131.46
-
50.00
3,435.98
13.55
10.85
-
-
0.80
0.08
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
9.68
9.68
-
-
-
-
-
-
-
1.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
0.64
-
-
85.09
85.40
-
-
-
1.18
-
-
14.57
1.00
-
-
-
-
0.01
-
-
-
-
-
-
-
-
-
10.58 *
23.91 *
2.80
1.15
0.68
0.55
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27.02
27.07
-
-
0.42
0.08
0.87
-
34.04
41.14
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.01
0.01
26.52
26.70
0.09
- #
1.77
1.77
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
6.67
5.34
109.17
109.17
-
-
-
-
-
-
-
-
-
-
321
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
41. Related Party Disclosures (Contd.)
Sr.
No.
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds /
Trust
Promoter
Group
23) Loans provided for as doubtful
advances (including interest)
24) Loans given written off
25) Loans taken repaid (including
loan converted into equity)
26) Loans repaid (including loan
converted into equity)
27) Deposits taken
28) Deposits refunded
29) Liability written back
30) Sale of Investments
31) Donation given
Balances outstanding
1) Unsecured Perpetual Securities
2) Redeemable Non-Convertible
Debentures
3)
Investments
4)
Impairment in value of
investments
5) Other receivables
6)
7)
8)
Loans given (including interest
thereon)
Loans taken (including interest
thereon)
Loans provided for as doubtful
advances (including interest
thereon)
9) Deposits taken outstanding
10) Dividend receivable
6.85
11.16
5.69
-
5,295.58
689.10
2,809.63
2,633.96
-
-
-
-
103.54
-
-
-
-
-
-
-
-
-
23,802.81
23,752.81
4,009.14
4,140.60
27.21
46.88
561.70
130.70
105.52
0.38
12.00
12.40
-
-
-
64.45
-
-
-
-
-
-
-
1.00
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
0.14
-
-
-
-
-
14.43
1.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
192.58
1,100.19 @
192.58 @ 1,100.19 @
-
-
4.17
1.26
1.27
1.27
-
-
1.27
1.27
-
-
-
-
67.50
67.50
32.91 @
9.23
72.98 @
72.84 @
-
-
54.39
54.25
-
-
-
16.71
-
-
-
-
-
-
-
-
-
-
-
-
-
2.03
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
322
K crore
Promoter
-
-
-
-
-
-
-
-
-
-
-
-
-
0.64
-
1,542.61
-
-
-
-
-
-
-
-
-
-
-
-
0.19
0.21
-
1.51
-
-
-
614.18
-
20.00
198.20
199.00
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36.50
36.50
129.39 @
145.24
-
-
241.95
241.95
-
-
35.45
20.46
-
-
-
-
-
-
-
-
-
-
-
-
4.59
5.04
-
-
-
-
-
-
0.21
0.02
-
-
-
-
1.73
0.08
-
-
-
-
-
2.00
2.00
-
-
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements 41. Related Party Disclosures (Contd.)
Sr.
No.
Particulars
Subsidiaries
Associates
Joint
Ventures
Key
Management
Personnel &
their relatives
Employee
Benefit
Funds /
Trust
Promoter
Group
K crore
Promoter
11) Guarantees, collaterals etc.
outstanding
12) Letter of comfort outstanding
13) Other payables
Notes:
14,658.57
16,322.85
-
-
9.95
22.37
-
-
-
-
4.24
7.58
-
-
0.05
0.05
0.27
60.81
-
-
-
-
8.04
12.93
-
-
-
-
43.63
13.56
-
-
-
-
3.66
0.51
-
-
-
-
0.04
19.20
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 enter 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.
All outstanding balances are unsecured.
$
* 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 Standalone Ind AS 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 amount reclassified as held for sale.
42. Financial Instruments
42.1 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 (Refer Note below)
Amortised Cost financial investments
Other Financial Assets
Asset Classified as Held For Sale (Refer Note 18)
- Strategic Engineering Division (SED)
- FVTOCI Financial Investments (Refer Note below)
- Loans and other receivables (including accrued interest)
Total
Financial liabilities
Trade Payables
Floating rate borrowings (including current maturities)
Fixed rate borrowings (including current maturities)
Other financial liabilities
Carrying value
Fair Value
31st March,
2020
31st March,
2019
31st March,
2020
31st March,
2019
K crore
158.54
20.40
1,108.68
83.41
592.19
584.92
20.00
416.14
171.38
454.84
75.94
19.85
1,442.20
41.56
170.55
591.85
Nil
419.65
416.40
98.95
158.54
20.40
1,108.68
83.41
592.19
584.92
20.00
416.14
176.79
454.84
75.94
19.85
1,442.20
41.56
170.55
591.85
Nil
419.65
423.27
98.95
667.35
22.81
22.74
4,323.40
265.62
38.65
18.59
3,599.81
667.35
22.81
22.74
4,328.81
265.62
38.65
18.59
3,606.68
1,001.87
6,579.58
11,386.65
707.64
19,675.74
1,124.89
7,752.86
9,699.66
967.19
19,544.60
1,001.87
6,579.58
11,397.63
707.64
19,686.72
1,124.89
7,752.86
9,774.02
967.19
19,618.96
#
Other than investments in subsidiaries, associates and joint ventures accounted at cost in accordance with Ind AS 27 'Separate
Financial Statements'.
323
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
42. Financial Instruments (Contd.)
Note:
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 'Financial Instruments', the Company has chosen to designate these investments in equity instruments as
at FVTOCI as the management believe this provides more meaningful presentation for medium and long term strategic investments,
then reflecting changes in fair value immediately in profit or loss.
The management assessed that the fair value of cash and cash equivalents, other balances with banks, 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 government securities are based on the price quotations near the reporting date. Fair value of the unquoted equity
shares have been estimated using market comparable method. The valuation requires management to make certain assumptions
about the marketability, active market price, 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 fair value of debentures is determined by using the quoted prices. The own non-performance risk as on 31st March, 2020 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, other current financial liabilities and 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 at FVTOCI (Refer Note below)
Opening balance
Gain/(Loss)
- in other comprehensive income
- in profit or loss
- changes on sale of equity shares
Closing balance
Note:
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
404.87
404.87
Nil
Nil
Nil
404.87
Nil
Nil
Nil
404.87
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, 2020 and 31st March, 2019 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, 2019: 5%)
increase (decrease) in the
transaction price would result in
increase (decrease) in fair value
by ₹ 2.82 crore (31st March, 2019:
₹ 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:
Quoted prices in an active market (Level 1): 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.
324
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
Valuation techniques with observable inputs (Level 2): Inputs are other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This includes
derivative financial instruments and unquoted floating and fixed rate borrowings.
Valuation techniques with significant unobservable inputs (Level 3): Inputs are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. This includes unquoted equity shares.
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) :
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
Liabilities for which fair values are disclosed
Fixed rate borrowings
Floating rate borrowings
Total
Asset measured at fair value
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
Date of valuation
Fair value hierarchy as at 31st March, 2020
Quoted prices
in active
markets
(Level 1)
K crore
Significant
observable
inputs
(Level 2)
K crore
Significant
unobservable
inputs
(Level 3)
K crore
Total
K crore
31st March, 2020
31st March, 2020
31st March, 2020
31st March, 2020
20.00
11.27
Nil
22.81
Nil
Nil
Nil
Nil
Nil
20.00
Nil
404.87
Nil
11.27
404.87
22.81
31st March, 2020
176.79
230.87
Nil
Nil
Nil
404.87
176.79
635.74
Date of valuation
Fair value hierarchy as at 31st March, 2020
Quoted prices
in active
markets
(Level 1)
K crore
Significant
observable
inputs
(Level 2)
K crore
Significant
unobservable
inputs
(Level 3)
K crore
Total
K crore
31st March, 2020
31st March, 2020
5,337.13
Nil
5,337.13
6,060.50
6,579.58
12,640.08
Nil
Nil
Nil
11,397.63
6,579.58
17,977.21
Date of valuation
Fair value hierarchy as at 31st March, 2019
Quoted prices
in active
markets
(Level 1)
K crore
Significant
observable
inputs
(Level 2)
K crore
Significant
unobservable
inputs
(Level 3)
K crore
Total
K crore
31st March, 2019
31st March, 2019
31st March, 2019
14.78
Nil
38.65
31st March, 2019
423.27
476.70
Nil
Nil
Nil
Nil
Nil
Nil
404.87
Nil
14.78
404.87
38.65
Nil
423.27
404.87
881.57
325
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
42. Financial Instruments (Contd.)
Date of valuation
Fair value hierarchy as at 31st March, 2019
Quoted prices
in active
markets
(Level 1)
K crore
Significant
observable
inputs
(Level 2)
K crore
Significant
unobservable
inputs
(Level 3)
K crore
Total
K crore
Liabilities for which fair values are disclosed
Fixed rate borrowings
Floating rate borrowings
Total
31st March, 2019
31st March, 2019
4,044.41
Nil
4,044.41
5,729.61
7,752.86
13,482.47
Nil
Nil
Nil
9,774.02
7,752.86
17,526.88
There has been no transfer between level 1 and level 2 during the period.
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 bank balances, 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, 2020
18,003.89
160.54
17,843.35
15,261.97
33,105.32
53.90
K crore
As at
31st March, 2019
17,641.99
77.94
17,564.05
15,689.60
33,253.65
52.82
(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.
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,
2020 and 31st March, 2019.
326
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
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 polices is approved by the
board of directors.
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 significant. 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, 2020 and 31st March, 2019.
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
In VND
Foreign Currency Assets
In USD
In ZAR
In SGD
In VND
In TAKA
* Denotes figures below ₹ 50,000
31st March, 2020
31st March, 2019
Foreign Currency
(In Millions)
20.50
0.31
Nil
300.78
Nil
0.02
790.21
K crore Foreign Currency
(In Millions)
32.13
0.07
*
124.51
0.01
0.01
Nil
154.88
2.60
Nil
20.92
Nil
0.08
0.25
31st March, 2020
31st March, 2019
Foreign Currency
(In Millions)
6.42
0.03
0.08
35.88
0.21
K crore Foreign Currency
(In Millions)
7.66
0.01
Nil
Nil
0.20
48.53
0.01
0.41
0.01
0.02
K crore
222.21
0.54
0.03
7.78
0.05
0.05
Nil
K crore
52.98
0.01
Nil
Nil
0.02
327
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
42. Financial Instruments (Contd.)
(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 Company’s 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.
K crore
Effect on profit before tax and
consequential impact on equity
As of 31st March, 2020
As of 31st March, 2019
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
(-) ₹ 1.41
(+) ₹ 1.41
(-) ₹ 2.45
(+) ₹ 2.45
Notes:
1. +/- Gain/Loss
2. The impact of depreciation/appreciation on foreign currency other than USD on profit before tax of the Company is not significant.
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
that have floating rate 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.
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 Loans
Effect on equity/profit before tax
42.4.2 Credit risk management
31st March, 2020
K crore
31st March, 2019
50 bps increase
50 bps decrease
50 bps increase
50 bps decrease
(+) ₹ 37.54
(-) ₹ 37.54
(-) ₹ 37.54
(+) ₹ 37.54
(+) ₹ 39.45
(-) ₹ 39.45
(-) ₹ 39.45
(+) ₹ 39.45
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, 2020
1,108.68
592.19
584.92
458.35
83.41
712.90
3,540.45
K crore
31st March, 2019
1,442.20
170.55
591.85
98.95
41.56
322.86
2,667.97
Refer Note 8 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.
328
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
42. Financial Instruments (Contd.)
42.4.3 Liquidity risk management
The current liabilities of the Company exceeds the current assets. 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. Hence, the Company considers the liquidity risk as low.
The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted
payments.
31st March, 2020
Non-Derivatives
Borrowings #
Trade Payables
Lease Liabilities
Other Financial Liabilities
Total Non-Derivative Liabilities
31st March, 2019
Non-Derivatives
Borrowings #
Trade Payables
Other Financial Liabilities
Total Non-Derivative Liabilities
Up to
1 year
1 to 5
years
5+
years
Total
9,323.93
1,001.87
61.26
655.37
11,042.43
9,118.34
Nil
143.49
14.60
9,276.43
11,479.38
Nil
333.45
Nil
11,812.83
29,921.65
1,001.87
538.20
669.97
32,131.69
K crore
Carrying
Amount
18,003.89
1,001.87
278.85
669.97
19,954.58
9,870.39
1,102.14
734.96
11,707.49
7,496.93
22.75
42.76
7,562.44
12,091.06
Nil
Nil
12,091.06
29,458.38
1,124.89
777.72
31,360.99
17,641.99
1,124.89
777.72
19,544.60
# 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.
43. Segment Reporting
From the current year, the Company has changed its organization structure into various operating verticals for efficient
monitoring and pursuing growth. Consequently, reporting to Chief Operating Decision Maker (CODM) has been changed
which has resulted into change in the composition of reportable segments. Accordingly, corresponding information for
comparative year has been restated in the segment reporting.
Information reported to the CODM for the purpose of resource allocation and assessment of segment performance focuses
on business segment which comprises of Generation, Renewables, Transmission and Distribution and Others. Specifically,
the Company's reportable segments under Ind AS are as follows:
Generation: Comprises of generation of power from hydroelectric sources and thermal sources (coal, gas and oil) from
plants owned and operated under lease arrangement and related ancillary services.
329
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
43. Segment Reporting (Contd.)
Renewables: Comprises of generation of power from renewable energy sources i.e. wind and solar and related ancillary
services
Transmission and Distribution: Comprises of transmission and distribution network, sale of power to retail customers
through distribution network and related ancillary services.
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/assets 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:
Particulars
Segment Revenue (Refer Note 3.11.3 and 30)
Generation
Renewables
Transmission and Distribution
Others
(Less): Inter Segment Revenue - Generation
(Less): Inter Segment Revenue - Renewables
Total Segment Revenue
Discontinued Operations- Others #
Revenue / Income from Operations (including Net Movement in Regulatory Deferral Balances)
Segment Results
Generation
Renewables
Transmission and Distribution
Others
Total Segment Results
(Less): Finance Costs
Add/(Less): Exceptional Item - Generation [Refer Note 35(i) and 39a.]
Add/(Less): Exceptional Item - Transmission and Distribution [Refer Note 35(i)]
Add/(Less): Exceptional Item - Unallocable [Refer Note 7(10)(b)]
Add/(Less): Unallocable Income/(Expense) (Net)
Profit/(Loss) Before Tax from Continuing Operations
Profit/(Loss) Before Tax from Discontinued Operations
Impairment Loss on Remeasurement to Fair Value (Refer Note 18)
Profit/(Loss) Before Tax from Discontinued Operations
330
Year ended
31st March, 2020
K crore
Year ended
31st March, 2019
4,456.33
283.49
4,012.16
30.76
8,782.74
(1,589.26)
(165.59)
7,027.89
343.74
7,371.63
739.16
102.43
825.29
7.78
1,674.66
(1,510.38)
(351.35)
(190.00)
235.00
492.60
350.53
(81.64)
(361.00)
(442.64)
5,263.76
271.40
4,320.33
34.83
9,890.32
(1,659.10)
(166.62)
8,064.60
143.59
8,208.19
1,142.85
82.71
1,049.88
19.42
2,294.86
(1,500.35)
(45.00)
Nil
1,212.99
384.50
2,347.00
(191.82)
Nil
(191.82)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
43. Segment Reporting (Contd.)
Particulars
Segment Assets
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Assets classified as held for sale # (Refer Note 18)
Total Assets
Segment Liabilities
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Liabilities classified as held for sale #
Total Liabilities
Capital Expenditure
Generation
Renewables
Transmission and Distribution
Others
Discontinued Operations
Depreciation/Amortisation (to the extent allocable to the segment)
Generation
Renewables
Transmission and Distribution
Others
Reconciliation of Revenue
Particulars
Revenue from Operations
Add/(Less): Net Movement in Regulatory Deferral Balances
Add/(Less): Net Movement in Regulatory Deferral Balances in respect of earlier years
Add/(Less): Deferred Tax Recoverable/(Payable) (Refer Note 3.11.3)
Add/(Less): Unallocable Revenue
Total Segment Revenue
Discontinued Operations- Others #
Total Segment Revenue as reported above
Year ended
31st March, 2020
K crore
Year ended
31st March, 2019
5,068.61
779.56
6,123.68
193.22
23,571.34
1,880.07
37,616.48
682.46
21.97
1,599.16
20.20
18,998.65
1,032.07
22,354.51
75.22
12.94
537.40
4.04
45.74
675.34
223.61
133.09
318.00
2.51
677.21
5,786.70
857.35
6,427.64
153.51
22,845.08
2,064.30
38,134.58
1,360.67
18.50
1,365.92
31.56
18,702.06
966.27
22,444.98
59.71
11.58
313.57
2.26
87.30
474.42
213.08
137.16
270.41
0.78
621.43
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
7,726.39
(792.24)
(21.32)
162.16
(47.10)
7,027.89
343.74
7,371.63
8,255.25
(519.03)
274.26
98.19
(44.07)
8,064.60
143.59
8,208.19
# Pertains to Strategic Engineering Division being classified as Discontinued Operations.
* Includes amount classified as held for sale other than Strategic Engineering Division.
Notes:
1. 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.
331
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
43. Segment Reporting (Contd.)
2. Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third
parties.
(b)
Geographic Information:
The Company's operations is majorly confined within India and as such there are no reportable geographical segments.
44.
Impact of COVID-19
India and other global markets experienced significant disruption in operations resulting from uncertainty caused by the
worldwide coronavirus pandemic. Majority of Company’s business includes generation, transmission and distribution of
power in India. Further, Company also has significant investments in subsidiaries, joint ventures and associates involved in
power supply and coal mining business in Indonesia. Considering power supply being an essential service, management
believes that there is not much of an impact likely due to this pandemic on the business of the Company and its subsidiaries,
joint ventures and associates except that there exists some uncertainty over impact of COVID-19 on future business
performance of its coal mining companies which form part of Mundra CGU (comprising of investment in companies owing
Mundra power plant, coal mine and related infrastructure). Based on the sensitivity analysis, management believes that
the said uncertainty is not likely to impact the recoverability of Mundra CGU. The Company is also closely monitoring
developments, its operations, liquidity and capital resources and is actively working to minimize the impact of this
unprecedented situation.
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 Standalone Financial Statements
The Standalone financial statements were approved for issue by the Board of Directors on 19th May, 2020.
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.324982E/E300003
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020
332
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Standalone Financial Statements
Independent Auditor's Report
To the Members of
The Tata Power Company Limited
Report on the Audit of the Consolidated 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, 2020, 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, 2020,
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, associates, joint ventures 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.
Emphasis of Matter
We draw attention to Note 45 of the consolidated Ind AS financial
statements, wherein it is stated that there exists a material
uncertainty about the impact of COVID-19 on the future
operations of joint ventures and an associate of the Group.
The auditors of respective companies have reported an
Emphasis of Matter in this regard in their reports of the respective
companies. Our opinion is not modified in respect of this matter.
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, 2020. 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.
333
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm •
115
included
“Revenue
How our audit addressed the key audit matter
Our audit procedures and procedures performed by
component auditors, amongst others,
the
following:
• Considered the Group's accounting policies with
respect to accrual of regulatory deferrals and assessing
Ind AS 114 “Regulatory Deferral
compliance with
Accounts”
from
Ind AS
and
Contract with Customers”.
Performed test of controls over revenue recognition and
accrual of regulatory deferrals through inspection of
evidence of performance of these controls.
Performed the tests of details including the following
key procedures:
•
Key audit matters
Revenue recognition and accrual of regulatory deferrals (as described in Note 18 and 28 of the consolidated Ind AS
financial statements)
In the regulated generation, transmission and 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 up.
The Group recognizes revenue on the basis of tariff invoiced
to customers. As the Group is entitled to a fixed return on
equity, the Group recognizes accrual for the shortage / excess
compared to the entitled return on equity. The Group has
recognized ` 1,027.12 crore for generation and transmission
business and ` 5,480.17 crore for distribution business as
accruals as at March 31, 2020.
Accruals are determined based on tariff regulations and past
tariff orders and are subject to verification and approval by
the
are
subject to prudential checks and prescribed norms.
Significant
in determining the
accruals
interpretation of tariff regulations.
Further certain disallowances of claims have been litigated
by the Group before higher authorities.
In the renewables business of the Group, certain customers
have raised dispute with respect to the tariff as per the
executed power purchase agreement (‘PPA’) and are making
part payment of invoices. Pending outcome of litigation, the
Group continues to recognize revenue at PPA rate.
Revenue recognition and accrual of regulatory deferrals is a
key audit matter considering the significance of the amount
and significant judgements involved in the determination.
Recognition and measurement of deferred tax (as described in Note 12 and 33 of the consolidated Ind AS
financial statements)
competence of management’s expert.
For tariff orders received by the Group, assessed
the
impact recognized by the Group and for
matters litigated by the Group, also assessed the
management’s evaluation of the likely outcome of
the dispute based on past precedents and/or advice
of management’s expert.
Evaluated the key assumptions used by the Group by
comparing it with prior years, past precedents and
the opinion of management’s expert.
in accordance with the
Ind AS 114 “Regulatory Deferral
from
Ind AS
requirements of
Accounts”
and
Contract with Customers”.
independence, objectivity and
• Assessed the disclosures
judgements are made
• Considered the
regulators.
“Revenue
including
incurred
Further
costs
the
115
•
•
The Group has recognized Minimum Alternate Tax (MAT)
credit receivable of ` 1,250.49 crore as at March 31, 2020.
The Group also has recognized deferred tax assets of ` 297.97
crore on long term capital loss on sale of investments.
Further, pursuant to the Taxation Laws (Amendment) Act,
2019 (new tax regime), the Group has remeasured its deferred
tax balances expected to reverse after the likely transition to
new tax regime, at the rate specified in the new tax regime
and has recognized a net gain of ` 159.25 crore.
The recognition and measurement of MAT credit receivable
and deferred tax balances; is a key audit matter as the
recoverability of such credits within the allowed time frame in
the manner prescribed under tax regulations and estimation
of year of transition to the new tax regime 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.
334
Our audit procedures and procedures performed by
component auditors, amongst others,
the
following:
included
•
• Considered Group’s accounting policies with respect
to recognition and measurement of tax balances in
accordance with Ind AS 12 “Income Taxes”
Performed test of controls over recognition and
measurement of tax balances through inspection of
evidence of performance of these controls.
Performed the tests of details including the following
key procedures:
•
•
Involved tax specialists who evaluated the Group’s
tax positions basis the tax law and also by comparing
it with prior years and past precedents.
• Discussed the future business plans and financial
projections with the management.
• Assessed the management’s long-term financial
projections and the key assumptions used in the
projections by comparing it to the approved business
plan, projections used for estimation of likely year
of transition to the new tax regime and projections
used for impairment assessment where applicable.
• Assessed the disclosures
in accordance with the
requirements of Ind AS 12 “Income Taxes”.
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 Impairment of assets (as described in Note 4, 5 and 6 of the consolidated Ind AS financial statements)
As per the requirements of Ind AS 36 "Impairment of
Assets", the Group tests the Goodwill acquired in business
combination for impairment annually. For other assets, the
Group 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.
• Considered the Group's accounting policies with
respect to impairment in accordance with Ind AS 36
“Impairment of assets”
Our audit procedures and procedures performed by
component auditors, amongst others,
the
following:
included
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.
The Group is carrying Goodwill of ` 1,641.57 crore relating
to acquisition of renewable energy businesses. The Group is
also carrying impairment provision amounting to ` 1,119.77
crore with respect to Mundra CGU (comprising of investment
in companies owning Mundra power plant, coal mines and
related infrastructure), ` 221.86 crore for investment in
company owning hydro power plant in Georgia and ` 100.00
crore with respect to 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.
Impairment of assets is a key audit matter considering
term
the significance of
estimation and the significant judgements involved in the
impairment assessment.
the carrying value,
long
•
•
Performed test of controls over impairment process
through inspection of evidence of performance of
these controls.
Performed the tests of details including the following
key procedures:
• Obtained
the management’s
impairment
assessment.
•
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.
• Obtained and evaluated the sensitivity analysis.
• Assessed the disclosures in accordance with Ind AS 36
“Impairment of assets”.
Going concern assessment (as described in Note 40.4.3 of the consolidated Ind AS financial statements)
The Group has current liabilities of ` 26,521.43 crore and
current assets of ` 12,021.48 crore as at March 31, 2020.
Current liabilities exceeds current assets as at the year end.
Given the nature of its business i.e. contracted long term
power supply agreements and a significant composition
of cost plus contracts leading to significant stability of
is confident
cashflows and profitability, management
of refinancing and consider the
low
and accordingly, the Group uses significant short term
borrowings to reduce its borrowing costs.
liquidity risk as
Management has made an assessment of the Group’s ability
to continue as a Going Concern as required by Ind AS 1
"Presentation of Financial Statements" considering all the
available information and has concluded that the going
concern basis of accounting is appropriate.
Going Concern assessment has been identified as a key audit
matter considering the significant judgements and estimates
involved in the assessment and its dependence upon
management’s ability to complete the planned divestments,
raising long term capital and/or successful refinancing of
certain current financial obligations.
Our procedures, amongst others, included the following:
• Obtained an understanding of the process and tested
the internal controls associated with the management’s
assessment of Going Concern assumption.
• Discussed with management and assessed
judgements and estimates used
the
in
assumptions,
assessment having
to past performance
and current emerging business trends affecting the
business and industry.
regards
• Assessed the Group’s ability to refinance its obligation
based on the past trends, credit ratings, ability to
generate cash flows and access to capital.
• Assessed the adequacy of the disclosures
in the
consolidated Ind AS financial statements.
335
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm 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 Ind AS 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.
in
the
India,
including
Responsibilities of Management for the Consolidated
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
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
Holding Company, as aforesaid.
the Directors of
In preparing the consolidated Ind AS 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.
Auditor’s Responsibilities for the Audit of the
Consolidated 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
the override of
omissions, misrepresentations, or
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 with reference to financial
statements 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.
336
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 •
•
•
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.
the consolidated
Evaluate the overall presentation, structure and content
Ind AS financial statements,
of
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 Ind AS financial
statements of which we are the independent auditors.
For the other entities included in the consolidated Ind AS 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, 2020 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.
information,
Other Matter
(a) We did not audit the financial statements and other
financial
in respect of 12 subsidiaries,
whose Ind AS financial statements include total assets
of ` 11,246.33 crore as at March 31, 2020, and total
revenues of ` 8,731.09 crore and net cash outflows of
` 7.58 crore for the year ended on that date. These Ind
AS financial statements and other financial information
have been audited by other auditors, whose 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 ` 670.90 crore
for the year ended March 31, 2020, as considered in the
consolidated Ind AS financial statements, in respect of 6
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 reports of such
other auditors.
Certain of these subsidiaries, associates and joint ventures
are located outside India whose financial statements
and other financial information have been prepared in
accordance with accounting principles generally accepted
in their respective countries and which have been audited
by other auditors under generally accepted auditing
standards applicable
in their respective countries.
The Holding Company’s management has converted
the financial statements of such subsidiaries, associates
and joint ventures located outside India from accounting
principles generally accepted in their respective countries
to accounting principles generally accepted in India.
337
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm
(b)
We have audited these conversion adjustments made
by the Holding Company’s management. Our opinion
in so far as it relates to the balances and affairs of such
subsidiaries, associates and joint ventures located outside
India is based on the report of other auditors and the
conversion adjustments prepared by the management of
the Holding Company and audited by us.
Ind AS financial
The accompanying consolidated
statements
include unaudited financial statements
and other unaudited financial information in respect
of 1 subsidiary, whose financial statements and other
financial information reflect total assets of ` 50.02 crore
as at March 31, 2020, and total revenues of Nil and net
cash outflows of ` 0.44 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 ` 14.98 crore for the year ended March 31,
2020, as considered in the consolidated Ind AS financial
statements, in respect of 13 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 statements 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:
338
(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)
(d)
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
Income, the Consolidated
of Other Comprehensive
Cash
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;
Statement
Flow
and
Ind AS
In our opinion, the aforesaid consolidated
financial statements comply with
the Accounting
Standards specified under Section 133 of the Act, read
with Companies (Indian Accounting Standards) Rules,
2015, as amended;
(e) On the basis of the written representations received from
the directors of the Holding Company as on March 31,
2020 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, 2020 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 2” to this report;
(g)
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, 2020 has been
paid/provided by the Holding Company, its subsidiaries,
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20
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;
applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts
including derivative contracts.
(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 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 and joint
ventures, as noted in the ‘Other matter’ paragraph:
i.
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 36 to the
consolidated Ind AS financial statements;
iii.
There has been no delay in transferring amounts,
required to be transferred, to the Investor Education
and Protection Fund by the Holding Company,
joint ventures,
its subsidiaries, associates and
incorporated
India during the year ended
in
March 31, 2020.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 20112773AAAACW7931
ii.
Provision has been made in the consolidated
Ind AS financial statements, as required under the
Mumbai
Date: May 19, 2020
339
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm Annexure 1 to the Independent Auditor’s Report
of even date on the Consolidated Financial
Statements of The Tata Power Company Limited
adequate internal financial controls over financial reporting
with reference to these consolidated Ind AS financial statements
was established and maintained and if such controls operated
effectively in all material respects.
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 Ind AS financial
statements of The Tata Power Company Limited as of and for the
year ended March 31, 2020, 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.
in
incorporated
Management’s Responsibility for Internal Financial
Controls
The respective Board of Directors of the Holding Company,
its subsidiary companies, its associate companies and joint
India,
ventures, which are companies
are responsible for establishing and maintaining
internal
financial controls based on the internal control over financial
reporting criteria established by the Holding Company
internal control
considering the essential components of
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 Ind AS 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
340
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
Ind AS 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 Ind AS 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 Ind AS financial statements.
to
Internal Financial Controls Over
these
Meaning of
Financial Reporting with Reference
Consolidated Financial Statements
A company's internal financial control over financial reporting
with reference to these consolidated Ind AS 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 Ind AS 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
Independent Auditor's ReportThe Tata Power Company Limited Integrated Annual Report 2019-20 acquisition, use, or disposition of the company's assets that
could have a material effect on the financial statements.
of
Internal
Limitations
Financial
Inherent
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
Ind AS 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 Ind AS financial
statements may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
reference to these consolidated Ind AS financial statements
were operating effectively as at March 31, 2020, 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
Ind AS financial statements of the Holding Company, in so far as
it relates to these 12 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
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 Ind AS financial statements
and such internal financial controls over financial reporting with
Mumbai
Date: May 19, 2020
per Abhishek Agarwal
Partner
Membership Number: 112773
UDIN: 20112773AAAACW7931
341
OverviewStatutory ReportsFinancial StatementsFuture ready for smart choicesOur Emphasis on ValueOur Value-creation Paradigm Consolidated Balance Sheet
as at 31st March, 2020
ASSETS
Non-current Assets
(a) Property, Plant and Equipment
(b) Capital Work-in-Progress
(c) Goodwill
(d) Other Intangible Assets
(e)
(f) Financial Assets
Investments accounted for using the Equity Method
(i) Other Investments
(ii) Trade Receivables
(iii) Loans
(iv) Finance Lease Receivables
(v) 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)
Inventories
(b) Financial Assets
(i)
Investments
(ii) Trade Receivables
(iii) Unbilled Revenue
(iv) Cash and Cash Equivalents
(v) Bank Balances other than (iv) above
(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
Total Assets before Regulatory Deferral Account
Regulatory Deferral Account - Assets
TOTAL ASSETS
As at
31st March, 2020
₹ crore
As at
31st March, 2019*
₹ crore
As at
1st April, 2018*
₹ crore
Notes
Page
4
361
5 a.
5 b.
6 a.
6 c.
7
8
9
10
11
12 a.
13
365
366
368
379
380
383
383
385
386
386
391
44,662.61
1,611.52
1,641.57
1,362.18
13,202.65
632.68
30.28
80.88
588.92
578.79
342.00
74.24
1,185.12
65,993.44
41,101.50
2,575.70
1,641.57
1,561.82
12,513.48
861.41
192.99
90.56
565.62
316.75
238.01
89.49
1,358.07
63,106.97
41,431.61
1,652.60
1,641.57
1,583.08
11,530.27
881.11
190.05
77.56
574.76
273.68
167.59
118.17
1,577.31
61,699.36
14
392
1,752.35
1,706.42
1,623.08
15
7
16 a.
16 b.
8
9
10
11
13
393
380
393
394
383
383
385
386
391
17 a.
394
18
398
699.51
4,425.90
799.42
1,861.50
232.68
33.00
33.20
1,412.43
1.10
770.39
12,021.48
6,253.06
84,267.98
5,480.17
89,748.15
166.98
4,445.26
837.85
645.45
142.00
87.18
37.90
241.59
2.67
1,881.85
10,195.15
5,102.68
78,404.80
5,758.13
84,162.93
436.16
2,788.93
810.09
1,061.16
124.62
754.47
34.27
401.59
14.77
1,512.32
9,561.46
4,339.26
75,600.08
6,304.56
81,904.64
342
The Tata Power Company Limited Integrated Annual Report 2019-20 Consolidated Balance Sheet
as at 31st March, 2020 (Contd.)
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
(i) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
(i) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
As at
31st March, 2020
₹ crore
As at
31st March, 2019*
₹ crore
As at
1st April, 2018*
₹ crore
Notes
Page
19 a.
19 b.
20
399
400
401
21
22
23
24
12 b.
25
26
27
22
23
24
25
26
403
405
406
407
386
407
416
416
405
406
407
407
416
17 b.
395
18
398
270.50
1,500.00
17,795.52
19,566.02
2,332.04
21,898.06
32,695.14
3,180.48
Nil
721.52
3.03
1,174.04
407.40
2,084.52
40,266.13
11,844.36
379.74
5,095.44
7,502.90
129.49
116.42
1,453.08
26,521.43
1,062.53
67,850.09
Nil
270.50
1,500.00
16,535.01
18,305.51
2,166.66
20,472.17
270.50
1,500.00
14,608.55
16,379.05
2,015.29
18,394.34
31,139.23
Nil
22.75
687.31
3.74
1,056.81
333.60
1,873.75
35,117.19
13,875.38
Nil
5,481.49
6,480.79
150.22
93.55
1,499.64
27,581.07
992.50
63,690.76
Nil
22,356.31
Nil
21.00
647.31
3.74
516.56
300.00
1,841.48
25,686.40
18,827.28
Nil
5,609.82
9,942.98
160.38
108.94
1,785.72
36,435.12
903.78
63,025.30
485.00
TOTAL EQUITY AND LIABILITIES
89,748.15
84,162.93
81,904.64
* Restated (Refer Note 44)
See accompanying notes to the Consolidated Financial Statements
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
BANMALI AGRAWALA
Director
ICAI Firm Registration No.324982E/E300003
DIN 01785164
DIN 00120029
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020
343
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm Consolidated Statement of Profit and Loss
for the year ended 31st March, 2020
Notes
28
29
Page
417
425
For the year ended For the year ended
31st March, 2019*
₹ crore
29,881.06
386.15
30,267.21
31st March, 2020
₹ crore
29,136.37
562.61
29,698.98
30
426
30
31
32
426
426
427
4 & 5 361 &
366
428
33
18
18
3.15
398
398
360
4a (i) &
17b(iii)(c)
37d.
6b (ii) &
(iii)
37e.
12
6b (i) (b)
363 &
395
433
378
433
386
378
34a.
12
428
386
12
386
17c.
17c.
396
396
6,220.46
9,922.39
214.00
957.18
111.74
(15.64)
1,440.64
4,493.73
2,633.56
6,359.53
11,640.02
248.23
919.35
345.22
24.37
1,339.05
4,170.00
2,393.13
2,342.78
28,320.84
2,260.15
29,699.05
1,378.14
(451.68)
(21.32)
284.31
(188.69)
568.16
(340.19)
274.26
169.20
103.27
1,189.45
671.43
952.55
2,142.00
1,401.83
2,073.26
Nil
Nil
532.51
(276.35)
(265.00)
235.00
226.16
2,368.16
494.30
330.95
(24.51)
(159.25)
641.49
1,726.67
(81.64)
(361.00)
Nil
(32.41)
(32.41)
(410.23)
(106.41)
(45.00)
1,897.24
Nil
Nil
Nil
1,745.83
3,819.09
524.66
544.02
18.91
Nil
1,087.59
2,731.50
(191.82)
Nil
(71.92)
5.94
(65.98)
(125.84)
I
II
III
IV
V
VI
Revenue from Operations [Refer Note 37(d)]
Other Income
Total Income
Expenses
Cost of Power Purchased
Cost of Fuel [Refer Note 37(d)]
Transmission Charges
Raw Material Consumed
Purchase of Finished Goods and Spares
(Increase)/Decrease in Stock-in-Trade and Work in Progress
Employee Benefits Expense (Net)
Finance Costs [Refer Note 22 & 37(d)]
Depreciation and Amortisation Expenses (Refer Note 22)
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 Balances
Add/(Less): Net Movement in Regulatory Deferral Balances in respect of earlier years
Add/(Less): Deferred Tax Recoverable/(Payable)
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
VII Profit/(Loss) Before Exceptional Items and Tax
Add/(Less): Exceptional Items
Impairment in respect of Property, Plant and Equipment
Provision for Contingencies
Gain on Sale of Investments in Associates
Standby Litigation
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime (Net)
Reversal of Impairment for Investment in Joint Venture & related obligation
VIII Profit/(Loss) Before Tax
IX
Tax Expense/(Credit)
Current Tax
Deferred Tax
Deferred Tax relating to earlier years
Remeasurement of Deferred Tax on account of New Tax Regime (Net)
X
XI
Profit/(Loss) for the Year from Continuing Operations
Profit/(Loss) before tax from Discontinued Operations
Impairment Loss related to Discontinued Operations on remeasurement to Fair Value
XII Tax Expense/(Credit) of Discontinued Operations
Current Tax
Deferred Tax
Tax Expense/(Credit) of Discontinued Operations
XIII Profit/(Loss) for the Year from Discontinued Operations
344
The Tata Power Company Limited Integrated Annual Report 2019-20
Consolidated Statement of Profit and Loss
for the year ended 31st March, 2020 (Contd.)
Notes
Page
25
407
34a (iii)
34a (iii)
430
430
XIV Profit/(Loss) for the Year
XV Other Comprehensive Income/(Expenses) - Continuing Operations
A Add/(Less): (i)
Items that will not be reclassified to Profit or Loss
Remeasurement of the Defined Benefit Plans
(a)
Equity Instruments classified at FVTOCI
(b)
Gain on sale of Investment classified at FVTOCI
(c)
Assets Classified as Held For Sale
(d)
- Equity Instruments classified at FVTOCI
(ii) Tax relating to items that will not be reclassified to Profit or Loss
(a)
(b)
Current Tax
Deferred Tax
(iii) Share of Other Comprehensive Income/(Loss) of Associates and
B Add/(Less): (i)
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)
Effective portion of cash flow hedge
(ii) Tax relating to items that will be reclassified to Profit or Loss
(a) Deferred Tax
(iii) Share of Other Comprehensive Income/(Loss) of Associates and
Joint Ventures accounted for using the Equity Method (net of tax)
XVI Other Comprehensive Income/(Expenses) - Discontinued Operations
Add/(Less): (i)
(ii)
Items that will not be reclassified to Profit or Loss
Income tax relating to items that will not be reclassified to Profit or Loss
34a. (iii)
430
XVII Total Other Comprehensive Income for the Year (XV + XVI)
XVIII Total Comprehensive Income for the Year (XIV + XVII)
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
XIX Basic and Diluted Earnings Per Equity Share (of ₹ 1/- each) (₹)
38
434
(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 44)
See accompanying notes to the Consolidated Financial Statements
For the year ended For the year ended
31st March, 2019*
₹ crore
2,605.66
31st March, 2020
₹ crore
1,316.44
(87.56)
(39.72)
Nil
Nil
13.22
13.73
2.23
430.63
128.84
(32.43)
407.06
836.00
0.20
Nil
0.20
836.20
2,152.64
1,017.38
299.06
1,316.44
838.25
(2.05)
836.20
1,855.63
297.01
2,152.64
5.33
4.64
(1.52)
3.12
(23.91)
2.68
1.66
(31.05)
6.81
(0.06)
(1.43)
187.18
Nil
Nil
23.35
165.23
(1.14)
0.40
(0.74)
164.49
2,770.15
2,356.19
249.47
2,605.66
164.92
(0.43)
164.49
2,521.11
249.04
2,770.15
8.29
8.54
(0.46)
8.08
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.324982E/E300003
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020
345
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Consolidated Statement of Cash Flows
for the year ended 31st March, 2020
A. Cash Flow from Operating Activities
Profit/(Loss) before tax from Continuing Operations
Profit/(Loss) before tax from Discontinued Operations
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 Non-Current Investments and related obligation
Impairment Loss on Remeasurement related to Discontinued Operations
(Gain)/Loss on disposal of Property, Plant and Equipment (Net)
Finance Cost (Net of Capitalisation)
Interest Income
Dividend Income
Gain on sale of Current Investment measured at fair value through
Profit and Loss
Gain on sale of Investment in Joint Venture/Associates accounted for using
the equity method
Allowances for Doubtful Debts and Advances (Net)
Amortisation of premium paid on Leasehold Land
Impairment of Non-current Investments
Provision for Warranties
Delayed Payment Charges
Transfer from Capital Grants
Amortisation of Service Line Contributions
Guarantee Commission from Joint Ventures
Share of Net Profit of Associates and Joint Ventures accounted for using the
equity method
Amortisation of Deferred Revenue
Effect of Exchange Fluctuation (Net)
Working Capital Adjustments:
Adjustments 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
346
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019*
₹ crore
2,368.16
(442.64)
3,819.09
(191.82)
2,633.56
Nil
17.00
(235.00)
361.00
24.99
4,529.88
(135.55)
(85.87)
(53.39)
(532.51)
20.71
Nil
Nil
10.45
(49.46)
(3.15)
(89.18)
(9.40)
(952.55)
38.69
(105.59)
(21.32)
(96.56)
54.23
(18.60)
(13.17)
8.58
387.45
214.01
10.51
(58.14)
277.97
(365.48)
226.15
2,393.13
106.41
16.00
Nil
Nil
31.96
4,206.33
(76.26)
(5.41)
(48.92)
(1,897.24)
72.54
10.48
(1.30)
15.14
(87.48)
(3.56)
(82.96)
(9.83)
(1,401.83)
60.48
(30.37)
5,384.63
7,310.15
3,267.31
6,894.58
(85.19)
(1,649.03)
84.93
5.51
46.13
(24.25)
(45.22)
(83.91)
138.46
(15.66)
546.41
(407.81)
518.63
The Tata Power Company Limited Integrated Annual Report 2019-20 Consolidated Statement of Cash Flows
for the year ended 31st March, 2020 (Contd.)
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 of refund received)
Net Cash Flows from/(used) in Operating Activities
A
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019*
₹ crore
3.68
6.26
609.31
(964.74)
(796.97)
448.63
141.53
233.51
26.04
Nil
(57.19)
69.40
(42.56)
(315.50)
(79.97)
28.11
74.61
(485.00)
(75.19)
45.25
64.95
7,984.41
(609.09)
7,375.32
(850.25)
5,079.59
(505.80)
4,573.79
B. Cash Flow from Investing Activities
Capital expenditure on Property, Plant and Equipment (including capital advances)
(2,225.81)
(3,576.22)
Proceeds from sale of Property, Plant and Equipment (including property, plant
and equipment classified as held for sale)
Purchase of Current Investments
Proceeds from sale of Current Investments
Consideration transferred on business combinations
Purchase of Non-current Investments
Proceeds from sale of Non-current Investments (Including advance and investments
classified as held for sale)
Inter-corporate Deposits (Net)
Interest Received
Delayed Payment Charges received
Guarantee Commission Received
Dividend Received
Bank Balance not Considered as Cash and Cash Equivalents
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
Increase in Capital/Service Line Contributions
Proceeds from Non-current Borrowings
Repayment of Non-current Borrowings
Proceeds from Current Borrowings
Repayment of Current Borrowings
Finance Cost Paid
Payment of Lease Liability (includes interest of ₹ 308.73 crore)
Dividend Paid
Additional Income-tax on Dividend Paid
Distribution on Unsecured Perpetual Securities
Net Cash Flow from/(used in) Financing Activities
C
36.37
(14,978.62)
14,673.11
Nil
(615.26)
577.88
Nil
164.92
49.61
3.84
1,894.53
(123.50)
(542.92)
20.07
80.10
7,188.37
(5,607.42)
42,412.07
(44,100.06)
(4,002.50)
(330.03)
(500.57)
(98.60)
(171.00)
(5,109.57)
42.91
(20,728.77)
20,936.88
(13.14)
(47.92)
2,507.08
83.61
139.35
34.33
9.59
308.66
(15.60)
(319.24)
Nil
97.00
10,867.07
(9,978.26)
34,846.52
(36,376.94)
(3,976.10)
Nil
(410.36)
(82.38)
(171.00)
(5,184.45)
347
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Consolidated Statement of Cash Flows
for the year ended 31st March, 2020 (Contd.)
Net Increase in Cash and Cash Equivalents (A + B + C)
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)
Notes:
Cash and Cash Equivalents include:
(a)
Balances with banks (Refer Note 16a.)
(i)
(ii)
In Current Accounts
In Deposit Accounts (with original maturity of three months or less)
(b) Cheques on Hand
Cash on Hand
(c)
Bank Overdraft
(d)
Cash and Cash Equivalents relating to Continuing Operations
(a)
(b)
Balances with banks
(i)
Book Overdraft
In Current Accounts
Cash and Cash Equivalents relating to Discontinued Operations
Cash and Cash Equivalent pertaining to Asset Classified as Held For Sale
Total Cash and Cash Equivalents
* Restated (Refer Note 44)
See accompanying notes to the Consolidated Financial Statements
For the year ended
31st March, 2020
₹ crore
1,722.83
61.52
50.04
1,834.39
For the year ended
31st March, 2019*
₹ crore
(929.90)
944.52
46.90
61.52
935.27
919.77
6.44
0.02
(34.71)
1,826.79
7.62
(0.02)
7.60
Nil
1,834.39
320.87
311.90
11.69
0.99
(590.89)
54.56
6.13
(0.02)
6.11
0.85
61.52
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.324982E/E300003
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020
348
The Tata Power Company Limited Integrated Annual Report 2019-20
Consolidated Statement of Changes in Equity
for the year ended 31st March, 2020
s
t
s
e
r
e
t
n
I
e
g
d
e
h
e
v
i
t
c
e
ff
E
f
o
n
o
i
t
r
o
p
w
o
fl
h
s
a
c
n
g
i
e
r
o
F
y
c
n
e
r
r
u
C
e
v
r
e
s
e
R
n
o
i
t
a
l
s
n
a
r
T
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
t
n
e
m
u
r
t
s
n
I
y
t
i
u
q
E
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
e
v
r
e
s
e
R
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
v
r
e
s
e
R
l
a
t
i
p
a
C
e
r
u
t
n
e
b
e
D
s
e
i
t
i
r
u
c
e
S
n
o
i
t
p
m
e
d
e
R
n
o
i
t
p
m
e
d
e
R
i
m
u
m
e
r
P
l
a
r
e
n
e
G
e
v
r
e
s
e
R
.
0
5
0
7
2
e
r
o
r
c
₹
t
n
u
o
m
A
l
i
N
l
i
N
.
0
5
0
7
2
.
0
5
0
7
2
e
r
o
r
c
₹
t
n
u
o
m
A
.
0
0
0
0
5
1
,
s
e
r
a
h
S
f
o
.
o
N
,
0
1
5
3
7
7
4
0
7
2
,
,
l
i
N
,
0
1
5
3
7
7
4
0
7
2
,
,
l
i
N
,
,
0
1
5
3
7
7
4
0
7
2
,
s
e
r
a
h
S
f
o
.
o
N
.
0
0
0
0
0
5
1
,
l
i
N
l
i
N
.
0
0
0
0
5
1
,
.
0
0
0
0
0
5
1
,
l
i
N
l
i
N
.
0
0
0
0
5
1
,
.
0
0
0
0
0
5
1
,
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
)
0
2
e
t
o
N
r
e
f
e
R
(
y
t
i
u
q
E
r
e
h
t
O
.
C
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
8
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
0
2
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
l
a
t
i
p
a
C
e
r
a
h
S
y
t
i
u
q
E
.
A
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
8
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
0
2
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
e
r
o
r
c
₹
l
a
t
o
T
-
n
o
N
g
n
i
l
l
o
r
t
n
o
C
e
m
o
c
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
l
s
u
p
r
u
S
d
n
a
s
e
v
r
e
s
e
R
n
o
i
t
p
i
r
c
s
e
D
.
9
4
4
6
1
.
6
6
5
0
6
2
,
.
4
8
3
2
6
6
1
,
.
5
1
0
7
7
2
,
l
i
N
l
i
N
l
i
N
l
i
N
.
)
2
3
1
2
5
(
.
)
0
0
1
7
1
(
.
7
6
1
0
7
8
1
,
.
7
6
1
0
7
8
1
,
s
t
s
e
r
e
t
n
I
.
9
2
5
1
0
2
,
.
7
4
9
4
2
)
3
4
0
(
.
.
4
0
9
4
2
)
7
6
7
9
(
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
6
6
6
6
1
2
,
.
6
6
6
6
1
2
,
g
n
i
l
l
o
r
t
n
o
c
.
2
9
4
6
1
.
9
1
6
5
3
2
,
.
5
5
8
0
6
4
1
,
.
1
1
1
2
5
2
,
l
i
N
l
i
N
l
i
N
l
i
N
.
)
5
6
3
2
4
(
.
)
0
0
1
7
1
(
.
1
0
5
3
5
6
1
,
.
1
0
5
3
5
6
1
,
.
4
4
6
1
3
1
,
.
0
2
6
3
8
.
4
6
2
5
1
2
,
7
0
0
2
.
.
)
6
0
6
7
5
(
l
i
N
l
i
N
l
i
N
.
)
6
7
0
7
1
(
.
6
5
7
2
1
0
2
,
.
6
0
9
9
2
)
5
0
2
(
.
.
1
0
7
9
2
7
0
0
2
.
.
8
3
7
1
0
1
,
l
i
N
.
5
2
8
3
8
.
3
6
5
5
8
1
,
.
)
0
7
1
5
1
(
.
)
6
3
4
2
4
(
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
)
6
7
0
7
1
(
.
4
0
2
3
3
2
,
.
2
5
5
9
7
7
1
,
l
i
N
6
2
1
.
6
2
1
.
)
6
2
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
1
4
6
9
.
1
4
6
9
.
1
4
6
9
.
l
i
N
.
7
6
7
6
3
.
8
2
9
0
2
.
8
2
9
0
2
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
e
m
o
c
n
I
)
7
7
4
4
(
.
l
i
N
)
6
8
7
2
(
.
)
6
8
7
2
(
.
l
i
N
l
i
N
.
5
1
1
7
7
l
i
N
l
i
N
l
i
N
.
5
9
6
7
5
.
2
5
8
9
6
l
i
N
.
5
9
6
7
5
.
8
6
7
3
8
.
8
6
7
3
8
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
3
6
4
1
4
1
,
l
i
N
.
2
5
8
9
6
)
2
7
9
3
(
.
)
2
7
9
3
(
.
l
i
N
l
i
N
.
)
4
3
6
6
6
(
l
i
N
l
i
N
l
i
N
)
4
5
7
(
.
.
4
4
2
5
4
2
,
.
8
0
0
6
6
.
5
0
9
1
1
.
9
0
2
3
2
6
7
5
1
.
.
6
1
3
7
0
1
,
.
0
8
7
4
6
5
,
.
3
5
6
8
0
4
,
)
6
7
7
1
(
.
.
9
1
6
5
3
2
,
.
3
4
8
3
3
2
,
.
6
2
4
4
3
.
)
5
6
3
2
4
(
.
)
5
1
1
7
7
(
.
)
0
0
0
0
5
(
)
4
5
3
(
.
.
)
0
0
1
7
1
(
.
9
7
5
6
2
3
,
.
9
7
5
6
2
3
,
.
8
3
7
1
0
1
,
l
i
N
)
2
1
6
5
(
.
.
6
2
1
6
9
.
4
3
6
6
6
.
)
6
3
4
2
4
(
0
7
0
9
.
)
8
4
1
(
.
.
)
6
7
0
7
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
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
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
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
.
)
6
2
4
4
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
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
8
4
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
)
0
7
0
9
(
.
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
.
8
0
0
6
6
.
9
5
2
2
1
.
9
0
2
3
2
.
6
7
5
1
5
.
0
9
8
2
7
.
8
0
0
6
6
.
9
5
2
2
1
.
9
0
2
3
2
.
6
7
5
1
5
.
0
9
8
2
7
.
0
8
7
4
6
5
,
.
3
5
6
8
0
4
,
.
0
8
7
4
6
5
,
.
3
5
6
8
0
4
,
.
9
4
7
8
3
4
,
.
8
0
0
6
6
.
7
0
4
2
1
.
9
0
2
3
2
.
6
7
5
1
5
.
0
2
8
3
6
.
0
8
7
4
6
5
,
.
3
5
6
8
0
4
,
A
L
A
W
A
R
G
A
I
L
A
M
N
A
B
9
2
0
0
2
1
0
0
N
D
I
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
I
M
.
M
.
H
,
d
r
a
o
B
e
h
t
f
o
f
l
a
h
e
b
n
o
d
n
a
r
o
F
r
o
t
c
e
r
i
D
g
n
i
g
a
n
a
M
&
O
E
C
A
H
N
I
S
R
E
E
V
A
R
P
4
6
1
5
8
7
1
0
N
D
I
M
A
Y
N
A
M
A
R
B
U
S
H
S
E
M
A
R
r
e
c
ffi
O
l
a
i
c
n
a
n
i
F
f
e
i
h
C
0
2
0
2
,
y
a
M
h
t
9
1
,
i
a
b
m
u
M
)
x
a
T
f
o
t
e
N
(
r
a
e
y
e
h
t
r
o
f
)
s
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
*
8
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
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
)
x
a
T
f
o
t
e
N
(
r
a
e
y
e
h
t
r
o
f
)
s
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
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
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
l
a
t
o
T
*
9
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
r
o
f
t
fi
o
r
P
)
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
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
r
e
f
s
n
a
r
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
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
m
o
r
f
/
o
t
r
e
f
s
n
a
r
T
l
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
i
i
r
e
f
s
n
a
r
T
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
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
)
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
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
m
o
r
f
/
o
t
r
e
f
s
n
a
r
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
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
)
4
4
e
t
o
N
r
e
f
e
R
(
d
e
t
a
t
s
e
R
*
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
L
A
W
R
A
G
A
K
E
H
S
I
H
B
A
r
e
p
r
e
n
t
r
a
P
3
7
7
2
1
1
.
i
o
N
p
h
s
r
e
b
m
e
M
0
2
0
2
,
y
a
M
h
t
9
1
,
i
a
b
m
u
M
349
l
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
i
i
r
e
f
s
n
a
r
T
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
Notes to the Consolidated Financial Statements
1.
Corporate Information
The Tata Power Company Limited (the ‘Company’ or 'Parent Company') is a public limited company domiciled and
incorporated in India under the Indian Companies Act, 1913. The registered office of the Company is located at Bombay
House, 24, Homi Mody Street, Mumbai 400 001 India. The Company is listed on the Bombay Stock Exchange of India
Limited (BSE) and the National Stock Exchange of India Limited (NSE). The principal business of the Company is generation,
transmission, distribution and trading of electricity.
2.
2.1
2.2
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 12,742 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 3,883 MW. Its international presence includes strategic investments
in Indonesia, Singapore, 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.
Significant Accounting Policies
Statement of compliance
The consolidated Ind AS 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).
Basis of preparation and presentation
The consolidated Ind AS 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 25 for accounting policy)
Historical cost is the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire assets at
the time of their acquisition or the amount of proceeds received in exchange for the obligation, or at the amount of cash or
cash equivalents expected to be paid to satisfy the liability in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date.
2.3
Basis of Consolidation
The Group consolidates all entities which are controlled by it. The consolidated Ind AS 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.
2.3.1 Subsidiaries
The consolidated Ind AS 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 Ind AS financial statements are prepared by applying uniform accounting policies in use at the Group.
Profit or loss and 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.
350
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
2.
2.3.2
Significant Accounting Policies (Contd.)
Joint Ventures and Associates
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
The Group accounts for its business combinations under acquisition method of accounting. Acquisition related costs are
recognised in consolidated Ind AS 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.
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 amount of assets and
liabilities of the acquired entity are recorded in shareholders’ equity.
In case of bargain purchase, before recognising gain in respect thereof, the Group determines whether there exists clear
evidence of the underlying reasons for classifying the business combination as a bargain purchase. Thereafter, the Group
reassesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and recognizes
any additional assets or liabilities that are identified in that reassessment. The Group then reviews the procedures used to
measure the amount that Ind AS requires for the purposes of calculating the bargain purchase. If the gain remains after this
reassessment and review, the Group recognises it in other comprehensive income and accumulates the same in equity as
capital reserve. This gain is attributed to the acquirer. If there does not exist clear evidence of the underlying reasons for
classifying the business combination as a bargain purchase, the Group recognises the gain, after reassessing and reviewing,
directly in equity as capital reserve.
2.5
Goodwill
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 amount 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.
351
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
2.
2.6
Significant Accounting Policies (Contd.)
Details of the Group's subsidiaries at the end of the reporting period considered in the preparation of the Consolidated Ind
AS Financial Statements are as follows:
Country of
Incorporation/
Principal Place of
Business
%
voting power held
as at
31st March, 2020
%
voting power held
as at
31st March, 2019
Name
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.
India
India
India
India
India
India
Bhira Investments Pte. Ltd. (Formerly known as Bhira Investments Ltd.)
Singapore
Bhivpuri Investments Ltd.
Khopoli Investments Ltd.
Trust Energy Resources Pte. Ltd.
TP Renewable Microgrid Ltd.
TCL Ceramics Ltd (formerly known as 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.
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.
TP Solapur Ltd.
TP Kirnali Ltd.
Walwhan Renewable Energy Ltd.
Clean Sustainable Solar Energy Pvt Ltd. @
Dreisatz Mysolar24 Pvt Ltd. @
MI Mysolar24 Pvt Ltd. @
Northwest Energy Pvt Ltd. @
Solarsys Renewable Energy Pvt Ltd. @
Walwhan Solar Energy GJ Ltd. @
Walwhan Solar Raj Ltd. @
Walwhan Solar BH Ltd. @
Walwhan Solar MH Ltd. @
Mauritius
Mauritius
Singapore
India
India
Singapore
India
India
India
India
India
Indonesia
India
Singapore
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
India
352
100
100
50.04
74
51
100
100
100
100
100
100
100
100
50.04
74
51
100
100
100
100
100
100
57.07
57.07
100
100
100
100
100
100
92.50
51
!
50.04
100
74
100
100
100
100
100
100
100
100
100
100
100
92.50
51
100
50.04
100
100
100
100
Nil
Nil
100
99.99
99.99
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
2.
Significant Accounting Policies (Contd.)
Name
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 #
Country of
Incorporation/
Principal Place of
Business
%
voting power held
as at
31st March, 2020
%
voting power held
as at
31st March, 2019
India
India
India
India
India
India
India
India
India
India
India
India
India
Russia
100
100
100
100
100
100
100
100
100
100
100
50.04
72
100
100
100
100
100
100
100
100
100
100
100
100
50.04
72
100
3.
3.1
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2020.
@ Consolidated with Walwhan Renewable Energy Ltd.
$ Classified as held for sale.
! Merged with Trust Energy Resources Pte. Ltd. during the year.
Other Significant Accounting Policies, critical accounting estimates and judgements
Foreign Currencies
The Group’s consolidated Ind AS 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 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).
The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
a) Assets and liabilities are translated at the closing rate at the date of that balance sheet
b)
Income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at
the dates of the transactions), and
c) All resulting exchange differences are recognised in OCI.
353
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
3.
3.2
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
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 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 consolidated Ind AS statement of profit and loss.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts future cash
receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter period.
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.
354
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
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.
3.5.2 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 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 consolidated Ind AS
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 consolidated Ind AS
statement of profit and loss.
3.5.4
Investment in Joint Ventures and Associates
Investment in joint ventures and associates are accounted using equity method less impairment.
An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in
the financial and operating policy decisions of the investee but is not control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists
only when decisions about the relevant activities require unanimous consent of the parties sharing control.
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 an indication for impairment. If the recoverable amount is less than its carrying amount, the
impairment loss is accounted for in the statement of profit or 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.
355
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
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 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 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.
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 consolidated Ind AS 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 consolidated Ind AS 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
consolidated Ind AS 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 - 'Financial Instruments' and the
amount recognised less cumulative amortisation.
3.7
Derivative financial instruments and hedge accounting
The Group enters into a variety of derivative financial instruments such as forward contracts, options contacts and interest
rate swaps, to manage its exposure to foreign exchange rate risks, including foreign exchange forward contracts and cross
currency swaps.
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered
into and are subsequently re-measured at fair value.
356
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.
The purchase contracts that meet the definition of a derivative under Ind AS 109 are recognised in the consolidated Ind AS
statement of profit and loss. Any gains or losses arising from changes in the fair value of derivatives are taken directly to
consolidated Ind AS statement of profit and loss.
The Group adopts hedge accounting for forward, interest rate and commodity contracts wherever possible. At the inception
of each hedge, there is a formal, documented designation of the hedging relationship. This documentation includes,
inter alia, items such as identification of the hedged item transaction and nature of the risk being hedged. At inception,
each hedge is expected to be highly effective in achieving an offset of changes in fair value or cash flows attributable to
the hedged risk. The effectiveness of hedge instruments to reduce the risk associated with the exposure being hedged
is assessed and measured at the inception and on an ongoing basis. The ineffective portion of designated hedges is
recognised immediately in the consolidated Ind AS statement of profit and loss.
When hedge accounting is applied:
•
•
for fair value hedges of recognised assets and liabilities, changes in fair value of the hedged assets and liabilities
attributable to the risk being hedged, are recognised in the consolidated Ind AS statement of profit and loss and
compensate for the effective portion of symmetrical changes in the fair value of the derivatives.
for cash flow hedges, the effective portion of the change in the fair value of the derivative is recognised directly in other
comprehensive income and the ineffective portion is recognised in the consolidated Ind AS statement of profit and loss.
If the cash flow hedge of a firm commitment or forecasted transaction results in the recognition of a non-financial asset
or liability, then, at the time the asset or liability is recognised, the associated gains or losses on the derivative that had
previously been recognised in equity are included in the initial measurement of the asset or liability. For hedges that
do not result in the recognition of a non-financial asset or a liability, amounts deferred in equity are recognised in the
consolidated Ind AS statement of profit and loss in the same period in which the hedged item affects the consolidated
Ind AS statement of profit and loss.
In cases where hedge accounting is not applied, changes in the fair value of derivatives are recognised in the consolidated
Ind AS statement of profit and loss as and when they arise.
Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer
qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in equity
is retained in equity until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the
net cumulative gain or loss recognised in equity is transferred to the consolidated Ind AS statement of profit and loss for
the period.
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.
357
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
Government grants relating to income are determined and recognised in the consolidated Ind AS 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.
3.11 Dividend distribution to equity shareholders of the Parent Company
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. In case of Interim
Dividend, the liability is recognised on its declaration by the Board of Directors.
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 recognising 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 recognised as recovery of the financial asset.
Changes in Accounting Policies & Adoption of new and amended standards and interpretations
3.13
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. The Group has applied Ind AS 116 ‘Leases’ (Ind AS 116) with a date of initial application of
1st April, 2019 using modified retrospective approach, under which the cumulative effect of initial application is recognised
as at 1st April, 2019.
Lessor accounting under Ind AS 116 is substantially unchanged from Ind AS 17. As a lessee, the Group previously classified
leases as operating or finance lease based on its assessment of whether the lease transferred significantly all of the risk and
rewards incidental to the ownership of the underlying asset of the Group. Under Ind AS 116, the Group recognises the right-
of-use assets and lease liabilities as stated in the Note 4b & 22.
On adoption of Ind AS 116, the Group has recognised ‘Right-of-use’ assets amounting to ₹ 3,786.47 crore (adjusted by
the prepaid lease payments amounting to ₹ 341.00 crore) and ‘Lease liabilities’ amounting to ₹ 3,472.68 crore, (including
re-classification of lease liability from trade payable and finance lease amounting to ₹ 24.00 crore and ₹ 3.03 crore
respectively) as at 1st April, 2019. There is no impact on retained earnings as at 1st April, 2019. The Group has applied Ind AS
116 only to the contracts that were previously identified as leases. As a practical expedient, contracts previously identified
as leases under Ind AS 17 has not reassessed as to whether contract is, or contains, a lease under Ind AS 116.
358
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
The Group has used the following practical expedients when applying Ind AS 116 to leases previously classified as operating
leases under Ind AS 17.
- Applied a single discount rate to a portfolio of leases with similar characteristics.
- Relied on its assessment of whether leases are onerous immediately before the date of initial applicable.
- Applied the exemption not to recognise right-of-use asset and liabilities for leases with remaining lease term of 12
months or less.
- Excluded initial direct costs from measuring the right-of-use assets at the date of application
- Used hindsight when determining the lease term if the contract contains options to extend or terminate the lease.
The lease liabilities as at 1st April, 2019 can be reconciled to the operating lease commitments as of 31st March, 2019 as
follows:
Particulars
Operating lease commitments as at 31st March, 2019 (including cancellable and non-cancellable lease)
Add: Liabilities for assets taken on finance lease
Less: Commitments relating to short-term leases
Less: Commitments relating to leases of low-value assets
Net operating lease commitments
Weighted average incremental borrowing rate as at 1st April, 2019
Discounted operating lease commitments as at 1st April, 2019
Add: Lease payments relating to renewal periods not included in operating lease
Lease liabilities as at 1st April, 2019
₹ crore
9,923.52
3.03
(29.42)
(0.38)
9,896.75
4.46% to 10.00%
3,465.26
7.42
3,472.68
Accounting Policy for Leases till 31st March, 2019
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 consolidated Ind AS statement of profit and loss on a
straight-line basis over the lease term.
3.14
Ind AS 12 'Income Taxes'
Pursuant to the amendment in Indian Accounting Standard (Ind AS) 12 - “Income Taxes” effective from 1st April 2019, the
Group has recognized the income tax consequence on interest on perpetual securities in the profit and loss which was
earlier recognized directly in other equity and has restated the figures for previous year. Accordingly, the profit after tax for
the year ended 31st March, 2019 is higher by ₹ 60.12 crore as compared to previous year reported profit. There is no impact
on the “Other Equity” of the Group.
359
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
3.
Other Significant Accounting Policies, critical accounting estimates and judgements
(Contd.)
3.15 Deferred Tax Recoverable / Payable
In the regulated operations of the Group where tariff recovered from consumers is determined on cost plus return on equity,
the Income tax cost is pass through cost and accordingly the Group recognises Deferred tax recoverable / payable against
any Deferred tax expense/ income. Until previous year, the same was presented under 'Tax Expenses' in the Consolidated
Ind As Financial Statements. During the year, pursuant to an opinion by the Expert Advisory Committee of The Institute of
Chartered Accountants of India, the same has now been included in 'Revenue from Operations' in case of Generation and
Transmission Divisions and 'Net Movement in Regulatory Deferral Balances' in case of Distribution Division. There is no
impact in the Other Equity and Profit/ (Loss) on account of such change in presentation. Impact of this restatement in the
comparative year is as follows:
Particulars
Revenue from Operations - Increase / (Decrease)
Movement in Net Regulatory Deferral Balances - Income / (Expense)
Tax (expense) / credit
Basic and diluted EPS from continuing operations before movement in regulatory deferral balances – Increase / (Decrease)
3.16 Critical accounting estimates and judgements
₹ crore
Year ended
31st March, 2019
322.42
169.20
491.62
(0.40)
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 Ind AS financial statements.
The areas involving critical estimates or judgements are:
Estimates and judgements used for impairment assessment of property, plant and equipment of certain cash generating
units (CGU) - Note 4
Estimation and judgements for impairment assessment of goodwill - Note 5a.
Estimations used for fair value of unquoted securities and impairment assessment of investments - Note 6
Estimation of defined benefit obligation - Note 25
Estimation of provision for warranty claims - Note 25
Estimates related to accrual of regulatory deferrals and revenue recognition - Note 18 and 28
Estimations used for determination of tax expenses and tax balances - Note 34 and 12
Judgement to estimate the amount of provision required or to determine required disclosure related to litigation and
claims against the Group - Note 36 and 37
Estimates and judgements related to the assessment of liquidity risk - Note 40.4.3.
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.
360
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
4.
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. Other Indirect Expenses
incurred relating to project, net of income earned during the project development stage prior to its intended use, are
considered as pre-operative expenses and disclosed under Capital Work-in-Progress. 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 the consolidated Ind AS statement of profit and loss as incurred.
The accounting policy related to Right of Use Assets has been disclosed in Note 22.
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 specified in tariff
regulations notified by respective Electricity Regulatory Commission ('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.
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 Group, based on technical assessment made
by technical expert and management estimate, depreciates certain items of building, plant and equipment 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
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.
Ships
Helicopters
Useful lives
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
361
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
4.
Property, Plant and Equipment (Contd.)
De-recognition
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 consolidated Ind AS statement of profit and loss.
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 assets of 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 basis 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 consolidated Ind AS statement of profit and loss.
362
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
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
.
c
t
e
r
o
t
o
M
,
s
e
g
r
a
B
,
s
e
l
c
i
h
e
V
,
s
e
h
c
n
u
a
L
s
e
r
u
t
x
i
F
e
l
b
a
c
k
r
o
w
t
e
n
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
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
.
c
t
e
,
s
d
a
o
R
y
a
w
l
i
a
R
,
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
)
.
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
s
t
e
s
s
A
d
e
n
w
O
.
4
.
a
@
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
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
.
3
0
8
7
1
3
,
.
)
7
5
2
3
7
(
.
2
1
6
5
1
.
)
7
7
8
8
0
1
(
,
.
3
3
5
6
4
9
5
,
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
)
9
6
4
(
.
)
3
4
4
(
.
l
i
N
l
i
N
l
i
N
l
i
N
)
1
7
1
(
.
.
0
3
5
3
l
i
N
l
i
N
l
i
N
4
8
1
1
.
.
)
8
8
6
6
5
(
)
9
6
9
1
(
.
.
7
0
6
5
1
.
)
6
4
0
8
2
1
(
,
l
i
N
l
i
N
l
i
N
3
2
9
2
.
)
5
2
4
(
.
l
i
N
l
i
N
l
i
N
8
1
4
.
)
1
3
6
(
.
5
0
0
.
l
i
N
l
i
N
.
1
7
0
8
5
)
2
4
1
(
.
l
i
N
.
5
2
8
9
3
2
,
l
i
N
7
0
1
.
l
i
N
l
i
N
.
)
4
8
9
2
1
(
)
5
0
0
(
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
0
9
8
2
.
)
7
3
2
(
.
)
6
2
0
(
.
2
0
3
8
.
)
1
6
1
(
.
l
i
N
.
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
,
.
1
7
5
5
8
6
1
,
4
9
0
.
5
2
3
3
.
.
5
7
4
5
4
.
6
4
4
5
.
1
9
2
7
5
5
1
8
.
.
3
4
6
7
2
2
,
.
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
9
1
0
2
,
l
i
r
p
A
t
s
1
t
a
s
a
e
c
n
a
l
a
B
)
4
9
0
(
.
)
4
9
0
(
.
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
.
7
5
5
1
3
2
,
8
3
1
1
.
.
)
9
8
6
3
6
(
6
8
4
8
.
.
9
6
9
2
6
8
1
,
.
4
6
5
3
8
0
4
,
.
0
5
1
0
1
1
4
,
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
2
0
0
.
)
4
5
1
(
.
3
7
1
3
.
l
i
N
9
4
3
.
7
5
3
.
6
7
3
.
l
i
N
l
i
N
l
i
N
4
3
1
1
.
.
2
5
6
3
2
1
,
2
8
5
6
.
5
3
0
1
.
.
)
1
9
1
3
5
(
)
8
2
1
1
(
.
.
0
4
8
1
)
5
2
4
(
.
l
i
N
l
i
N
l
i
N
l
i
N
3
5
3
5
.
6
0
7
8
.
1
7
8
.
)
4
8
5
(
.
4
0
0
.
1
0
0
.
7
4
4
8
.
l
i
N
l
i
N
.
4
1
6
7
2
)
7
6
0
(
.
.
0
9
1
5
5
2
,
.
7
2
4
2
8
1
,
l
i
N
)
7
2
9
7
(
.
.
2
4
5
8
.
2
8
6
2
5
4
1
,
l
i
N
l
i
N
8
9
1
.
)
5
0
0
(
.
l
i
N
l
i
N
l
i
N
0
6
5
.
l
i
N
5
1
8
2
.
)
4
3
2
(
.
l
i
N
6
7
3
6
.
)
8
2
1
(
.
2
1
0
.
5
8
0
.
l
i
N
l
i
N
l
i
N
7
3
2
1
.
5
6
2
7
.
1
6
1
6
.
.
8
0
7
4
2
.
1
6
6
0
6
.
3
2
6
0
3
8
9
0
3
.
2
1
2
3
.
9
4
4
4
.
9
0
0
5
.
.
9
7
1
3
5
.
4
6
1
3
5
.
7
1
0
6
6
1
,
.
3
0
2
4
6
1
,
.
4
1
0
3
2
.
0
6
2
4
2
7
0
0
4
.
9
9
6
4
.
.
0
4
1
0
1
7
5
0
9
.
0
9
3
3
.
9
8
8
3
.
.
4
8
6
2
2
4
,
.
2
3
3
8
8
2
3
,
.
1
7
3
2
9
3
,
.
5
5
7
2
2
2
3
,
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
7
9
8
4
0
1
,
.
4
5
1
3
0
1
,
)
b
4
e
t
o
N
r
e
f
e
R
(
9
1
0
2
,
l
i
r
p
A
t
s
1
t
a
s
a
s
t
e
s
s
A
e
s
U
i
f
o
t
h
g
R
o
t
d
e
fi
i
s
s
a
l
c
e
R
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
t
n
e
m
e
v
o
M
e
g
n
a
h
c
x
E
s
t
e
s
s
a
f
o
l
a
s
o
p
s
i
D
s
n
o
i
t
a
r
e
p
O
l
e
a
s
r
o
f
d
e
h
s
a
o
t
/
l
m
o
r
f
d
e
fi
i
s
s
a
l
c
e
R
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
)
a
7
1
e
t
o
N
r
e
f
e
R
(
0
2
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
t
n
u
o
m
a
g
n
i
y
r
r
a
c
t
e
N
363
l
i
N
0
6
3
9
.
.
6
4
8
8
1
.
7
3
8
1
1
.
4
7
8
7
7
6
,
.
4
1
0
1
4
7
4
,
.
3
6
3
0
1
.
0
1
6
0
1
.
7
8
8
7
7
.
8
7
6
6
2
2
,
.
7
3
6
3
5
.
7
9
8
4
0
1
,
0
2
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
1
0
0
.
)
9
6
0
(
.
.
8
7
7
1
2
)
3
2
0
(
.
l
i
N
)
5
4
0
(
.
2
3
0
.
)
3
1
0
(
.
)
1
2
3
2
(
.
)
a
7
1
e
t
o
N
r
e
f
e
R
(
l
i
N
4
0
0
.
l
i
N
l
i
N
.
6
4
6
3
5
l
i
N
l
i
N
9
7
0
4
.
)
5
1
0
(
.
.
4
5
1
3
0
1
,
)
b
4
e
t
o
N
r
e
f
e
R
(
9
1
0
2
,
l
i
r
p
A
t
s
1
t
a
s
a
s
t
e
s
s
A
e
s
U
i
f
o
t
h
g
R
o
t
d
e
fi
i
s
s
a
l
c
e
R
9
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
t
n
e
m
e
v
o
M
e
g
n
a
h
c
x
E
s
n
o
i
t
i
d
d
A
s
l
a
s
o
p
s
i
D
l
e
a
s
r
o
f
d
e
h
s
a
o
t
/
l
m
o
r
f
d
e
fi
i
s
s
a
l
c
e
R
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
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
.
c
t
e
,
s
e
g
r
a
B
,
s
e
l
c
i
h
e
V
,
s
e
h
c
n
u
a
L
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
.
c
t
e
,
s
d
a
o
R
y
a
w
l
i
a
R
,
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
-
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
.
4
364
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
.
6
2
2
2
4
2
,
3
4
7
9
.
.
)
3
3
7
2
2
(
l
i
N
l
i
N
l
i
N
.
)
0
8
2
7
7
(
.
)
5
6
5
2
2
(
l
i
N
l
i
N
l
i
N
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
.
.
6
0
2
6
)
1
3
3
1
(
.
.
)
1
3
0
1
(
l
i
N
l
i
N
0
1
3
.
)
5
8
4
(
.
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
(
.
5
6
7
3
4
6
5
,
.
8
0
0
3
2
1
0
7
3
.
.
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
,
.
6
5
3
1
9
3
4
,
l
i
N
.
3
5
4
6
6
1
,
.
)
4
6
8
8
1
(
)
3
7
0
(
.
.
5
4
9
9
2
1
4
.
l
i
N
l
i
N
l
i
N
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
(
.
)
0
6
1
2
(
.
)
4
2
1
5
(
.
.
0
1
6
0
1
.
3
1
2
6
7
.
9
8
3
4
1
2
,
.
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
,
.
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
t
s
o
C
l
i
N
l
i
N
6
5
1
.
)
8
7
1
(
.
.
6
4
6
3
5
3
3
2
6
.
)
5
4
1
(
.
l
i
N
)
8
2
3
(
.
.
4
5
1
3
0
1
,
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
l
l
e
a
s
r
o
f
d
e
h
s
a
d
e
fi
i
s
s
a
l
c
e
R
t
n
e
m
e
v
o
M
e
g
n
a
h
c
x
E
s
n
o
i
t
i
d
d
A
s
l
a
s
o
p
s
i
D
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
,
7
0
8
1
.
8
8
1
2
.
.
)
3
2
6
5
1
(
l
i
N
0
9
2
.
l
i
N
l
i
N
.
)
0
5
3
0
3
(
)
0
1
0
1
(
.
l
i
N
7
4
2
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
1
9
4
6
.
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
,
4
9
0
.
.
5
2
3
3
.
5
7
4
5
4
6
4
4
5
.
2
3
3
1
.
)
0
1
3
(
.
l
i
N
l
i
N
)
8
3
0
(
.
1
9
2
7
.
.
0
5
1
0
1
1
4
,
.
1
6
1
3
4
1
4
,
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
.
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
(
.
l
i
N
7
0
0
.
)
6
6
2
(
.
.
3
4
6
7
2
2
,
.
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
.
7
0
5
0
8
1
,
2
1
2
.
.
)
1
2
7
3
1
(
)
4
6
0
(
.
l
i
N
2
6
5
.
.
3
1
1
3
)
6
3
0
(
.
l
i
N
.
5
3
0
1
.
)
2
6
8
3
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
)
5
4
2
1
(
.
)
2
2
9
3
(
.
2
0
8
5
.
)
5
4
1
(
.
l
i
N
5
6
7
.
7
3
2
1
.
)
1
5
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
.
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
.
.
9
0
0
5
.
4
6
1
3
5
1
2
0
3
.
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
,
.
1
6
5
2
6
1
,
.
8
6
3
5
2
.
4
9
3
7
9
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
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
s
n
o
i
t
a
r
e
p
O
t
n
e
m
e
v
o
M
e
g
n
a
h
c
x
E
]
w
o
e
b
l
)
i
(
e
t
o
N
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
a
e
c
n
a
l
a
B
9
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
8
1
0
2
,
h
c
r
a
M
t
s
1
3
t
a
s
A
t
n
u
o
m
a
g
n
i
y
r
r
a
c
t
e
N
l
l
e
a
s
r
o
f
d
e
h
s
a
d
e
fi
i
s
s
a
l
c
e
R
l
f
o
e
u
a
v
g
n
y
r
r
a
c
i
t
e
N
(
l
t
n
a
p
n
o
i
t
a
r
e
n
e
g
r
e
w
o
p
a
l
l
a
h
t
i
R
f
o
e
u
a
v
g
n
y
r
r
a
c
i
i
t
s
n
a
g
a
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
s
i
n
g
o
c
e
r
d
a
h
p
u
o
r
G
e
h
t
,
r
a
e
y
i
s
u
o
v
e
r
p
e
h
t
g
n
i
r
u
D
.
)
e
l
a
s
l
r
o
f
d
e
h
s
t
e
s
s
a
s
a
d
e
fi
i
s
s
a
l
c
n
e
e
b
s
a
h
e
r
o
r
c
4
0
0
2
₹
.
:
s
e
t
o
N
)
a
(
)
i
(
h
c
i
h
w
r
o
f
r
a
e
y
r
e
i
l
r
a
e
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
₹
-
9
1
0
2
,
h
c
r
a
M
.
t
s
1
3
(
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
(
.
0
2
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
₹
-
9
1
0
2
,
h
c
r
a
M
.
t
s
1
3
(
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
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
1
0
8
₹
-
9
1
0
2
.
,
h
c
r
a
M
.
t
s
1
3
(
e
r
o
r
c
1
0
8
₹
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
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
.
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
₹
-
9
1
0
2
,
h
c
r
a
M
.
t
s
1
3
(
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
)
b
(
)
c
(
)
d
(
:
r
o
f
t
p
e
c
x
e
,
p
u
o
r
G
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
(
.
.
)
e
r
o
r
c
8
1
8
0
4
₹
9
1
0
2
,
h
c
r
a
M
t
s
1
3
(
e
r
o
r
c
8
1
8
0
4
₹
s
i
.
0
2
0
2
,
1
3
h
c
r
a
M
t
a
s
a
d
e
s
i
n
g
o
c
e
r
t
n
e
m
r
i
a
p
m
I
l
a
t
o
T
)
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
)
i
i
(
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
4.
b.
Property, Plant and Equipment (Contd.)
Right of Use Assets - ROU (Refer Note 22)
Description
Cost
Land
Plant and
Equipment
Building-
Plant
Port Intake
Channel
Ships
₹ crore
Total
Balance as on 1st April 2019 due to adoption of Ind AS 116
[Refer Note 3.13]
Exchange Movement
Additions
Disposals
Reclassified to ROU at 1st April, 2019 (Refer Note 4a and 5b)
Reclassified as held for Sale (Refer Note 17a)
Balance as at 31st March, 2020
Accumulated depreciation and impairment
Depreciation Expense - Continuing Operations
Exchange Movement
Reclassified to ROU at 1st April, 2019 (Refer Note 4a and 5b)
Balance as at 31st March, 2020
Net carrying amount
As at 31st March, 2020
As at 1st April, 2019
821.60
Nil
69.31
Nil
174.71
(43.61)
11.43
Nil
3.09
Nil
Nil
Nil
7.73
Nil
0.08
(0.53)
4.69
Nil
2,332.32
613.39
3,786.47
Nil
30.22
Nil
Nil
Nil
56.59
Nil
Nil
Nil
Nil
56.59
102.70
(0.53)
179.40
(43.61)
1,022.01
14.52
11.97
2,362.54
669.98
4,081.02
66.63
Nil
52.63
4.88
Nil
Nil
119.26
4.88
2.01
Nil
0.94
2.95
73.36
Nil
Nil
50.30
3.30
Nil
197.18
3.30
53.57
73.36
53.60
254.05
902.75
821.60
9.64
11.43
9.02
2,289.18
616.38
3,826.97
7.73
2,332.32
613.39
3,786.47
Net carrying amount
a. Owned Assets
b. Right of Use Assets
Total
5 a. Goodwill
Cost
Balance at beginning of year
Additions during the year
Less: Impairment charge during the year
Balance at end of year
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
40,835.64
3,826.97
44,662.61
41,101.50
Nil
41,101.50
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
1,641.57
1,641.57
Nil
Nil
Nil
Nil
1,641.57
1,641.57
365
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 5 a. Goodwill (Contd.)
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, 2020 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 10.05% to 10.54% 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, 2019 - ₹ Nil).
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:
Operation & Maintenance cost inflation Escalation of 5%
Discount Rate
Plant load factor (PLF)
10.05% to 10.54% (31st March, 2019 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 is estimated for each CGU based on past trend of PLF and
expected PLF in future years
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 consolidated Ind AS statement of profit and loss when the
asset is derecognised.
Amortisation 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 consolidated Ind AS 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
For accounting policy related to impairment has been disclosed in Note 4
Useful lives
5 years
5 years
12 to 25 years
3 to 6 years
20 years
366
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
5 b. Other Intangible Assets (Contd.)
Description
Cost
Balance as at 1st April, 2019
Reclassified to Right of Use Assets as at 1st April, 2019
(Refer Note 4b)
Additions
Disposal
Balance as at 31st March, 2020
Accumulated amortisation and impairment
Balance as at 1st April, 2019
Reclassified to Right of Use Assets as at 1st April, 2019
(Refer Note 4b)
Amortisation expense - Continuing Operations
Disposal
Balance as at 31st March, 2020
Net carrying amount
As at 31st March, 2020
As at 31st March, 2019
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
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 @
₹ crore
Total
12.92
174.71
1,386.14
393.32
47.09
2,014.18
Nil
(174.71)
0.75
(9.07)
4.60
Nil
Nil
Nil
Nil
Nil
Nil
Nil
21.91
(0.03)
Nil
(174.71)
23.78
(0.36)
46.44
(9.46)
1,386.14
415.20
70.51
1,876.45
11.22
52.75
162.21
224.15
2.03
452.36
Nil
(52.75)
0.57
(9.07)
2.72
Nil
Nil
Nil
Nil
64.15
Nil
Nil
55.81
(0.03)
Nil
3.23
Nil
(52.75)
123.76
(9.10)
226.36
279.93
5.26
514.27
1.88
Nil
1,159.78
135.27
65.25 1,362.18
1.70
121.96
1,223.93
169.17
45.06
1,561.82
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 @
₹ crore
Total
12.40
174.71
1,386.57
315.38
27.69
1,916.75
0.52
Nil
Nil
Nil
Nil
(0.43)
87.74
(9.80)
19.40
Nil
107.66
(10.23)
12.92
174.71
1,386.14
393.32
47.09
2,014.18
10.62
0.60
45.35
7.40
100.34
176.32
62.30
52.39
1.04
0.99
333.67
123.68
Nil
-
(0.43)
(4.56)
Nil
(4.99)
11.22
52.75
162.21
224.15
2.03
452.36
1.70
1.78
121.96
129.36
1,223.93
169.17
45.06
1,561.82
1,286.23
139.06
26.65 1,583.08
Internally generated intangible assets.
Notes:
#
$ 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.
367
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
5 b. Other Intangible Assets (Contd.)
Depreciation/Amortisation-Continuing Operations
Depreciation on Tangible Assets
Add: Depreciation on Right of Use Assets
Add: Amortisation on Intangible Assets
Less: Depreciation/Amortisation Capitalised
Total
6 a.
Investments accounted for using the Equity Method
As at
31st March, 2020
As at
31st March, 2019
₹ crore
2,315.57
197.18
123.76
(2.95)
₹ crore
2,269.45
Nil
123.68
Nil
2,633.56
2,393.13
As at
31st March,
2020
Quantity
As at
31st March,
2019
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2020
₹ crore
As at
31st March,
2019
₹ crore
I
Investment in Associates
(a) Investment in Equity Shares fully Paid-up
Unquoted
Brihat Trading Pvt. Ltd.
The Associated Building Co. Ltd.
Yashmun Engineers Ltd.
3,350
1,825
19,200
3,350
1,825
19,200
10
900
100
Dagachhu Hydro Power Corporation Ltd.
10,74,320
10,74,320
Nu 1,000
Tata Projects Ltd. (Refer Note 44)
9,67,500
9,67,500
100
II
Investment in Joint Ventures
(a) Investment in Equity Shares fully Paid-up
A
0.01
3.30
4.28
80.47
642.20
730.26
0.01
0.17
5.31
91.57
523.79
620.85
Unquoted
PT Kaltim Prima Coal
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
Indocoal KPC Resources (Cayman) Ltd.
Adjaristsqali Netherlands BV
Khoromkheti Netherlands BV
1,23,540
1,23,540
USD 100
4,357.21 **
5,270.77 **
300
82,380
18,000
3
300
USD 1
3,794.31
3,458.27
82,380
IDR 10,000
0.32
18,000
IDR 10,000
1,521.47
3
SGD 1
28.86
0.28
1,205.90
18.88
1,07,459
1,07,459
IDR 10,000
Nil *
Nil *
10,769
7,500
300
16,459
500
10,769
7,500
300
16,459
500
IDR
1,00,000
USD 100
USD 1
Euro 1
Euro 1
284.89
204.91
0.90
253.14
181.86
0.73
265.88 **
362.05 **
Nil
Nil
Resurgent Power Ventures Pte. Ltd. [Refer Note 6b
(v) below]
77,929
77,929
USD 1
Powerlinks Transmission Ltd. (Refer Note 4 below) 23,86,80,000 23,86,80,000
Industrial Energy Ltd. (Refer Note 4 below)
49,28,40,000 49,28,40,000
Dugar Hydro Power Ltd.
Tubed Coal Mines Ltd.
4,32,50,002
4,32,50,002
1,01,97,800
1,01,97,800
Mandakini Coal Company Ltd. (Refer Note 4 below) 3,93,00,000
3,93,00,000
10
10
10
10
10
353.00
484.43
617.54
23.55
Nil
Nil
5.02
465.81
567.31
23.59
Nil
Nil
carried forward ...........................
11,937.27
11,937.27
11,813.61
11,813.61
368
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
brought forward ...........................
Quoted
PT Baramulti Sukessarana Tbk.
** Less: Impairment in the value of Investments
[Refer Note 6b (i) (a) & (b)]
(b) Investment in Perpetual Securities in Joint Ventures
Unquoted
Adjaristsqali Netherlands BV
** Add/Less: Impairment in the value of Investments
[Refer Note 6b (i) (b)]
B
C
As at
31st March,
2020
Quantity
As at
31st March,
2019
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2020
₹ crore
As at
31st March,
2019
₹ crore
11,937.27
11,813.61
68,02,90,000 68,02,90,000
IDR 100
1,346.74 **
1,181.76 **
13,284.01
12,995.37
1,030.69
12,253.32
1,102.74
11,892.63
N.A.
219.07
96.83
Nil
219.07
96.83
Nil
Total
A+B+C
13,202.65
12,513.48
Notes:
*Denotes figure below ₹ 50,000
**Impairment in the value of Investments
1. Aggregate Market Value of Quoted Investments
2. Aggregate Carrying Value of Quoted Investments (Net of Impairment)
3. Aggregate Carrying Value of Unquoted Investments (Net of Impairment)
588.31
1,067.23
653.35
925.86
12,135.42
11,587.62
4. Shares pledged
The Group has pledged shares of joint ventures with the lenders for borrowings availed by the respective joint ventures.
Details
Itezhi Tezhi Power Corporation $
Mandakini Coal Company Ltd.
Powerlinks Transmission Ltd.
Industrial Energy Ltd.
$ Classified as held for sale
Category
Joint Venture
Joint Venture
Joint Venture
Joint Venture
31st March, 2020
Nos.
31st March, 2019
Nos.
4,52,500
2,00,43,000
23,86,80,000
25,13,48,400
4,52,500
2,00,43,000
23,86,80,000
25,13,48,400
III
Details of Material Associates
Details of each of the Group's Material Associates at the end of the reporting period are as follows:
Name of Associate
Principal Activity
Sr.
No.
Country of
Incorporation
and Principal
Place of
Business
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March, 2020
As at
31st March, 2019
A
B
Tata Projects Limited
Dagachhu Hydro Power
Corporation Limited
EPC Contracts
Hydro Power Generation
Company
India
Bhutan
47.78%
26.00%
47.78%
26.00%
369
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 a.
Investments accounted for using the Equity Method (Contd.)
Summarised Financial Information of Material Associates
A
Tata Projects Ltd.
Summarised Balance Sheet:
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Net Assets- Gross
Less: Non-controlling interest
Net Assets- Net
Summarised Statement of Profit and Loss
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expenses) for the year
Total Comprehensive Income/(Expenses) for the year
Reversal of Deferred Tax liability on unrealised profits
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,842.34
12,822.83
(1,676.15)
(11,680.70)
1,308.32
10.73
1,297.59
1,432.72
12,024.15
(606.17)
(11,591.91)
1,258.79
9.88
1,248.91
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
10,687.05
13,417.67
108.65
(35.49)
73.16
96.00
169.16
244.34
0.12
244.46
Nil
244.46
Dividends received from Tata Projects Ltd. during the year
9.68
9.66
Reconciliation of the above summarised financial information to the carrying amount of the interest in Tata Projects Ltd.
recognised in the consolidated Ind AS 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
Carrying amount of the Group's interest in Tata Projects Ltd.
B
Dagachhu Hydro Power Corporation Ltd.
Summarised Balance Sheet
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Net Assets
370
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,297.59
47.78%
618.90
23.30
Nil
642.20
1,248.92
47.78%
596.49
23.30
(96.00)
523.79
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,054.54
25.69
(715.82)
(54.78)
309.63
1,120.36
52.22
(751.58)
(68.79)
352.21
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
Summarised Statement of Profit and Loss
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expenses) for the year
Total Comprehensive Income/(Expenses) for the year
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
143.11
(42.58)
Nil
(42.58)
124.36
(24.83)
(0.04)
(24.87)
Dividends received from Dagachhu Hydro Power Corporation Ltd. during the year
Nil
Nil
Reconciliation of the above summarised financial information to the carrying amount of the interest in Dagachhu Hydro
Power Corporation Ltd. recognised in the consolidated Ind AS 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, 2020
₹ crore
As at
31st March, 2019
₹ crore
309.63
26.00%
80.51
352.21
26.00%
91.57
IV
Details of individually not Material Associates
Name of Associate
Principal Activity
Nelito Systems Ltd. $
Yashmun Engineers Ltd.
Brihat Trading Private Ltd.
Indian IT Solution and Services
Billing and other related Services
Trading Business
The Associated Building Co. Ltd.
Services Provided for Building
$ Sold during the year
Country of
Incorporation
and Principal
Place of
Business
India
India
India
India
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March, 2020
As at
31st March, 2019
0.00%
27.27%
33.21%
33.14%
28.15%
27.27%
33.21%
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/(Expenses)
The Group's share of Total Comprehensive Income/(Expenses)
Aggregate carrying amount of the Group's interests in these Associates
Unrecognised share of losses of an Associate
Cumulative share of loss of an associate
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
2.10
Nil
2.10
0.01
Nil
0.01
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
7.55
5.49
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
Nil
Nil
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
Nil
Nil
371
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 a.
V
Investments accounted for using the Equity Method (Contd.)
Details and Financial Information of Material Joint Ventures at the end of the reporting period is as follows:
Name of Joint Venture
Principal Activity
SL
No.
Indocoal Resources (Cayman) Ltd. # Coal Trading
Coal mining and exploration
A PT Kaltim Prima Coal
B
C PT Nusa Tambang Pratama
D PT Baramulti Suksessarana TBK
E
Industrial Energy Ltd.
Infrastructure Support for Coal Business
Coal mining and trading
Power generation and operation
of power plant
Country of
Incorporation and
Principal Place of
Business
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March, 2020
As at
31st March, 2019
Indonesia
Cayman Island
Indonesia
Indonesia
30.00%
30.00%
30.00%
26.00%
30.00%
30.00%
30.00%
26.00%
India
74.00%
74.00%
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2020.
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
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expense) for the year
Total Comprehensive Income/(Expense) 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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
4,752.12
4,592.79
(2,163.40)
(6,300.88)
880.63
461.55
(2,292.92)
(1,070.16)
2,281.01
8,876.94
(1,629.22)
(4,452.88)
5,075.85
284.90
(1,676.67)
(46.09)
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
24,628.04
1,205.85
11.75
1,217.60
1,678.78
1,369.55
56.20
69.99
1,212.38
25,997.34
2,461.62
(4.97)
2,456.65
Nil
972.14
121.91
22.26
2,271.48
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Kaltim Prima Coal
recognised in the consolidated Ind AS financial statements:
Net Assets of PT Kaltim Prima Coal
Proportion of the Group's ownership interest in PT Kaltim Prima Coal
carried forward ...........................
372
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
880.63
30.00%
264.19
264.19
5,075.85
30.00%
1,522.76
1,522.76
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
brought forward ...........................
Goodwill
Carrying amount of the Group's interest in PT Kaltim Prima Coal
Impairment of Goodwill
Carrying amount of the Group's interest in PT Kaltim Prima Coal (net of impairment)
B
Indocoal Resources (Cayman) Ltd.
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
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expense) for the year
Total Comprehensive Income/(Expense) 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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
264.19
4,093.02
4,357.21
(529.32)
3,827.89
1,522.76
3,748.01
5,270.77
(484.79)
4,785.98
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,151.62
2,740.87
Nil
(1,292.63)
2,599.86
3,634.66
69.01
Nil
(1,375.16)
2,328.51
Nil
Nil
(1,256.25)
(1,326.46)
Nil
Nil
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
Nil
53.48
Nil
53.48
Nil
Nil
34.76
Nil
Nil
Nil
17.16
Nil
17.16
Nil
Nil
16.64
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 Ind AS 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, 2020
₹ crore
As at
31st March, 2019
₹ crore
2,599.86
30.00%
779.96
3,014.35
3,794.31
2,328.51
30.00%
698.55
2,759.72
3,458.27
373
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 a.
Investments accounted for using the Equity Method (Contd.)
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
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expenses) for the year
Total Comprehensive Income/(Expenses) 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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
2,130.73
4,421.75
(145.49)
(1,331.94)
5,075.05
211.14
(1,260.02)
Nil
2,087.87
3,296.74
(120.09)
(1,241.67)
4,022.85
260.31
(1,103.77)
Nil
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
1,064.97
639.04
(0.01)
639.03
1,018.88
631.98
(0.02)
631.96
Nil
Nil
140.54
79.47
62.47
212.74
138.59
68.02
61.43
217.47
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Nusa Tambang
Pratama recognised in the consolidated Ind AS financial statements:
Net Assets of PT Nusa Tambang Pratama
Proportion of the Group's ownership interest in PT Nusa Tambang Pratama
Carrying amount of the Group's interest in PT Nusa Tambang Pratama
D
PT Baramulti Suksessarana TBK
Summarised Balance Sheet
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Net Assets
374
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
5,075.05
30.00%
1,522.52
4,022.85
30.00%
1,205.90
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,314.57
593.23
(104.66)
(435.83)
1,367.31
1,099.66
538.29
(128.28)
(455.16)
1,054.51
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
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
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expense) for the year
Total Comprehensive Income/(Expense) 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
250.22
(50.90)
(61.38)
35.95
(49.68)
(90.77)
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
2,935.80
277.02
(3.92)
273.10
18.43
125.46
1.87
8.02
93.54
3,169.25
353.62
1.71
355.33
125.39
109.93
3.83
6.12
127.32
Reconciliation of the above summarised financial information to the carrying amount of the interest in PT Baramulti
Suksessarana TBK recognised in the consolidated Ind AS financial statements:
Net Assets of PT Baramulti Suksessarana TBK
Proportion of the Group's ownership interest in PT Baramulti Suksessarana TBK
Goodwill
Carrying amount of the Group's interest in PT Baramulti Suksessarana TBK
Impairment of Goodwill
Carrying amount of the Group's interest in PT Baramulti Suksessarana TBK (net of
impairment)
E
Industrial Energy 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)
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,367.31
26.00%
355.50
991.24
1,346.74
(279.51)
1,054.51
26.00%
274.17
907.59
1,181.76
(255.90)
1,067.23
925.86
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,635.15
265.75
(788.44)
(277.94)
834.52
3.83
(248.83)
(575.53)
1,433.23
305.72
(762.74)
(209.55)
766.66
48.46
(184.52)
(522.00)
375
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 a.
Investments accounted for using the Equity Method (Contd.)
Summarised Statement of Profit and Loss
Revenue
Profit/(Loss) for the year
Other Comprehensive Income/(Expense) for the year
Total Comprehensive Income/(Expense) 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, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
301.29
148.52
(0.37)
148.15
49.28
Nil
0.56
53.84
(3.82)
300.40
111.13
(0.25)
110.88
59.14
Nil
0.98
64.69
50.97
Reconciliation of the above summarised financial information to the carrying amount of the interest in Industrial Energy
Ltd. recognised in the consolidated Ind AS financial statements:
Net Assets of Industrial Energy Ltd.
Proportion of the Group's ownership interest in Industrial Energy Ltd.
Carrying amount of the Group's interest in Industrial Energy Ltd.
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
834.52
74.00%
617.54
766.66
74.00%
567.31
VI
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
Country of
Incorporation
and Principal
Place of
Business
Proportion of Ownership Interest /
Voting Rights held by the Group
As at
31st March, 2020
As at
31st March, 2019
PT Indocoal Kaltim Resources #
Infrastructure Support for Coal Business Indonesia
Candice Investments Pte. Ltd.#
Investments
Singapore
PT Marvel Capital Indonesia #
Infrastructure Support for Coal Business Indonesia
PT Dwikarya Prima Abadi #
PT Kalimantan Prima Power
Infrastructure Support for Coal Business Indonesia
Electricity Support Services
Indonesia
Indocoal KPC Resources (Cayman) Ltd. # Coal Trading
Adjaristsqali Netherlands BV
Hydro power generation
Khoromkheti Netherlands BV #
Hydro power generation
Cennergi Pty. Ltd. $
Wind power generation
Resurgent Power Ventures Pte Ltd.
Investments and Services
Powerlinks Transmission Ltd.
Power Transmission
Dugar Hydro Power Ltd.
Tubed Coal Mines Ltd. #
Hydro power generation
Coal mining and trading
Mandakini Coal Company Ltd. #
Coal mining and trading
Cayman Island
Netherlands
Netherlands
South Africa
Singapore
India
India
India
India
$ Sold during the year
# Based on Unaudited Financial Information, certified by its Management for the year ended 31st March, 2020.
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
40.00%
40.00%
0.00%
26.00%
51.00%
50.00%
40.00%
33.33%
30.00%
30.00%
30.00%
30.00%
30.00%
30.00%
40.00%
40.00%
50.00%
26.00%
51.00%
50.00%
40.00%
33.33%
376
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 a.
Investments accounted for using the Equity Method (Contd.)
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/(Expense)
The Group's share of Total Comprehensive Income/(Expense)
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/-.
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
62.17
Nil
62.17
128.65
Nil
128.65
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,864.77
(221.86)
1,642.91
1,408.19
(458.88)
949.31
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
*
*
6b.
(i)
(a) The Group had in accordance with 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. Upto the previous year, the Group has recognised net
impairment of ₹ 1,119.77 crore against carrying value of Mundra CGU which consists of impairment of investment of
₹ 808.83 crore, impairment of property, plant and equipment ₹ 308.18 crore and impairment of intangible assets ₹ 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 ₹ 1,119.77 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
10.87% p.a. (31st March 2019: 10.61% p.a.) and investment in coal mines and related infrastructure companies is 12.68%
p.a. (31st March 2019: 11.06% p.a.).
377
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 b.
Investments accounted for using the Equity Method (Contd.)
(b) The Group holds investments in Adjaristsqali Netherlands B.V. (ABV) (a Joint Venture of the Group) operating 187
MW hydro power plant in Georgia. In the past, the Group, in accordance with Ind AS 36 – “Impairment of Assets” had
recognized impairment provision on investment of ₹ 459.06 crore and financial guarantee obligation of ₹ 103.74 crore.
Pursuant to debt restructuring of ABV, execution of long-term power purchase agreement (PPA) with Government
of Georgia, receipt of insurance claims and start of commercial operations during the year ended 31st March
2020, the Group performed the recoverability assessment and recognised the reversal of impairment of ₹ 235.00
crore comprising of reversal of ₹ 103.74 crore towards financial guarantee obligation and reversal of ₹ 131.26 crore
towards its investment in ABV which has been disclosed as an exceptional item in the statement of profit and loss.
The Group has performed the recoverability assessment and determined the value in use based on estimated cash
flow projections over the life of the assets included in CGU and grouped under Renewable Power Segment. Projected
cash flows include cash flow projections approved by management covering 3 to 5 years period and the cash flows
beyond that has been projected based on the long -term forecast.
The following key assumptions were used for performing the valuation:
- Tariff post PPA period of 15 years;
- Pre-tax discount rate of 6.64 %.
(ii) During the previous year, the Group sold investments in Tata Communications Limited and Panatone Finvest Limited
(Associate Companies) and recognised a gain of ₹ 1,897.24 crore which had been disclosed as an exceptional income
in the consolidated Ind AS statement of profit and loss.
Further, during the previous year , the Group had also sold its investment in equity shares of Tata Teleservices Limited
and recognised a gain of ₹ 0.01 crore after reduction in fair value amounting to ₹ 1,438.42 crore recognised in earlier
years.
(iii) During the year ended 31st March, 2020, the Group has sold its investments in Cennergi Pty. Ltd. (a joint venture
company of the Group) and recognised a gain on sale of investments amounting to ₹ 532.51 crore. Further, the Group
has hedged its receivable against consideration to be received, fair value gain on hedge instrument of ₹ 105.09 crore
has been recognised in other income.
(iv) During the year, the Group has reassessed its plan to sale investment in Tata Projects Limited (Associate company of
the Group) and has reclassified its investment in Tata Projects from Asset held for sale to Investments in Associate
accounted under equity method. (Refer Note 44)
(v) During the year ended 31st March, 2020, Resurgent Power Ventures Pte Limited (‘Resurgent’), a joint venture of the
Group has acquired 77% stake (on a fully diluted basis) in Prayagraj Power Generation Company Limited (‘PPGCL’) at an
enterprise valuation of ₹ 7,035 crore. PPGCL owns and operates 1,980 MW thermal power station located in the state
of Uttar Pradesh. The acquisition has been recognised by Resurgent based on fair values that has been determined
provisional basis in accordance with Ind AS 103 - ‘Business Combination’.
(vi) 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 has been classified and disclosed as Assets
classified as held for sale. During the previous 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 in 31st March, 2019. During the year ended
31st March, 2020, the Group has sold the investments and recognised gain of ₹ 0.92 crore.
378
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
6 c. Other Investments
As at
31st March,
2020
Quantity
As at
31st March,
2019
Quantity
Face Value
(in ₹ unless
stated
otherwise)
As at
31st March,
2020
₹ crore
As at
31st March,
2019
₹ crore
I
Investments designated at Fair Value through Other
Comprehensive Income
(a) Investment in Equity Shares fully Paid-up
Quoted
Voltas Ltd.
Tata Consultancy Services Ltd.
Tata Motors Ltd.
Tata Motors Ltd. - Differential Voting Rights
Tata Investment Corporation Ltd.
2,33,420
766
3,57,159
51,022
7,94,416
2,33,420
766
3,57,159
51,022
7,94,416
(b) Investment in Equity Shares fully Paid-up
Unquoted
Tata Industries Ltd. *
Tata Sons Pvt. Ltd. *
Haldia Petrochemicals Ltd.
Tata International Ltd . *
Tata Capital Ltd
68,28,669
6,673
2,24,99,999
24,000
23,33,070
68,28,669
6,673
2,24,99,999
24,000
23,33,070
1
1
10
10
2
100
1,000
10
1,000
10
11.13
0.14
2.53
0.16
50.12
64.08
115.47
194.70
56.48
18.77
12.29
397.71
461.79
14.62
0.15
6.23
0.44
66.52
87.96
115.47
194.70
56.48
18.77
12.29
397.71
485.67
Sub-total I (a) + I (b)
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.
Sub-total II (a) + II (b)
III
Investments carried at Amortised Cost
(a) Government Securities (Unquoted) fully Paid-up
(b) 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
Sub-total III (a) + III (b)
Total
2,94,00,000
2,94,00,000
AUD 1.50
2.86
1.18
6,000
6,000
25
0.16
3.02
0.16
1.34
40.00
Nil
127.87
136.65
Nil
237.75
167.87
374.40
632.68
861.41
379
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
6 c. Other Investments (Contd.)
Notes:
1. Aggregate Market Value of Quoted Investments
2. Aggregate Carrying Value of Quoted Investments
3. Aggregate Carrying Value of Unquoted Investments
4.
66.94
66.94
565.74
89.14
89.14
772.27
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.
7.
Trade Receivables
(Unsecured unless otherwise stated)
Non-current
Considered Good - Unsecured (Refer Note 37e.)
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Current
Considered Good - Secured (Refer Note below)
Considered Good - Unsecured (Refer Note Below 1, 2 & 3)
Credit Impaired
Less: Allowance for Doubtful Trade Receivables
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
30.28
4.55
34.83
4.55
30.28
515.48
3,923.04
420.89
4,859.41
433.51
4,425.90
192.99
4.55
197.54
4.55
192.99
291.07
4,173.65
372.01
4,836.73
391.47
4,445.26
Note: The Group holds security deposits and Letter of Credit of ₹ 515.48 crore (31st March, 2019 - ₹ 291.07 crore).
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 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:
*Expected Credit Loss (%)
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
0.13%
1.79%
0.59%
13.11%
0.36%
0.48%
0.94%
15.86%
Ageing of Receivables
Within the credit period
1-90 days past due
91-182 days past due
More than 182 days past due
* Excludes Special allowance
380
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
7.
Trade Receivables (Contd.)
(Unsecured unless otherwise stated)
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
Add/(Less): Special allowance on trade receivables for the year
Less: Transferred to Assets Classified as Held For Sale (Refer Note 17 c)
Balance at the end of the year
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,785.39
1,050.25
414.54
1,644.06
2,401.08
1,165.39
416.25
1,051.55
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
396.02
329.47
54.07
(12.03)
Nil
438.06
53.09
25.00
(11.54)
396.02
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.
Note:
1 Trade receivables include receivables amounting to ₹ 299.79 crore (31st March 2019: Nil) and ₹ 86.03 crore (31st March
2019: Nil) from Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Jaipur Vidyut Vitran
Nigam Limited, respectively, which are subject to a ‘bill discounting arrangement’. Under this arrangement, the Group
has transferred the relevant receivables to the banks in exchange of cash and is prevented from selling or pledging the
receivables. The cost of bill discounting is to the customer's account. However, the Group has retained late payment
and credit risk. The Group therefore continues to recognise the transferred assets in their entirety in its financial
statements. The amount repayable under the bills discounting arrangement is presented as unsecured / secured
borrowing having recourse to the Group and interest liability on amount of bill discounted is borne by the customer.
The maturity period of the transfer is 6 to 9 months from the date of discounting. The maturity of bills discounted is
starting from 20th June, 2020.
2 a) The Group supply solar power to TANGEDCO against long term Power Purchase Agreements (PPAs). As per the said
PPAs, the Group is entitled to receive consideration for all energy units supplied and billed. However, whilst effecting
payments to the Group, TANGEDCO has disputed and is not making payment for energy units supplied and billed in
excess of 19% Capacity Utilisation Factor (CUF) in accordance with its internal circular.
The National Solar Energy Federation of India (NSEFI) has filed the writ petition with Madras High Court challenging
the said circular issued by TANGEDCO on behalf of generators who have commissioned solar power plants and
impacted by the said circular. The Tata Power Company Limited, ultimate holding company of the group, is also
a Member of NSEFI. The said petition has been admitted. On the basis of an independent legal opinion and the
latest Tamil Nadu Electricity Regulatory Commission (TNERC) order issued on 25th March 2019 on backing down
/ curtailment instruction to solar power plants, the Group is confident that said circular issued by TANGEDCO is
unilateral action and not tenable legally. Hence, the Group considers that it is highly probable that the consideration
for energy units supplied in excess of 19% CUF would be realized.
381
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
7.
Trade Receivables (Contd.)
(Unsecured unless otherwise stated)
Accordingly, the Group has a trade receivable balance of ₹ 80.11 crore (including ₹ 32.27 crore relating to current
period) for such excess units as on 31st March, 2020. Considering signed PPA and its independent legal evaluation,
the Group believes that these amounts are fully recoverable and no provision has been recognized in the consolidated
Ind AS financial statements.
b) Trade Receivables include ₹ 669.38 crore receivable from TANGEDCO (including ₹ 312.64 crore relating to current
period, ₹ 299.79 crore relating to bill discounting with recourse till date (refer note 1 above) and ₹ 80.11 crore
pertaining to CUF adjustment as mentioned above). The Group is of the view that these receivables are fully
recoverable. In accordance with the PPAs, the Group is entitled to receive interest on delayed payment, however
it is recognized, on prudence grounds, only when recovered. The Group is of the view that there is no credit loss
or loss due to time value of money as TANGEDCO is a State Electricity Distribution Company and the outstanding
amounts would be recovered along with the interest in terms of the relevant PPA. Hence, no provision for Expected
Credit Loss in accordance with Ind AS 109 has been recognized in the consolidated Ind AS financial statements.
3 In the year 2016, the Group entered into long-term Power Purchase Agreements (“PPAs”) with the Southern Power
Distribution Company of Andhra Pradesh Limited (“APDISCOM”) to supply power from its two solar plants with
cumulative capacity of 100 MWs (Solar energy projects) at ₹ 5.99 per unit (with escalation @ 3% p.a. from year 2 to 10).
The Government of Andhra Pradesh (the “GoAP”) issued an order (the “GO”) dated 1st July, 2019 constituting a High Level
Negotiation Committee (the “HLNC”) for review and negotiation of tariff for wind and solar projects in the state of Andhra
Pradesh. Pursuant to the GO, APDISCOM issued letters dated 12th July, 2019 to the Group requesting for revision of tariffs
previously agreed as per the PPAs to ₹ 2.44 per unit. Since the Group and other power producers did not agree to the
rate revision, APDISCOM referred the matter to the Andhra Pradesh Electricity Regulatory Commission (the “APERC”) for
revision of tariffs.
The Group had filed a writ petition on 30th July, 2019 before the Andhra Pradesh High Court (“AP High Court”) challenging
the GO and the said letters issued by APDISCOM for renegotiation of tariffs. The AP High Court has issued its order dated
24th September, 2019 whereby it allowed the writ petition. The AP High court also instructed APDISCOM to honour
pending and future bills but to pay them at a rate of ₹ 2.44 per unit (as against the billed rate). The AP High Court also
stated that this rate is only an interim measure until the matter is resolved by the APERC and suggested the APERC to
conclude this matter within 6 months period.
During the year ended 31st March, 2020, the Group has received an amount of ₹ 58.90 crore from APDISCOM at the
interim rate of ₹ 2.44 per unit as against PPA rates stated above.
The Group has a net block of ₹ 632.60 crore and has recognised a revenue of ₹ 97.71 crore for the year ended 31st March,
2020 and has a trade receivable balance of ₹ 128.44 crore as on 31st March, 2020 from sale of electricity against such PPAs.
Considering signed PPA, interim order passed by the AP High Court, and its internal legal evaluation, the management
believes that final order would be in its favour and hence no adjustment has been made in the consolidated Ind AS
financial statements.
382
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
8.
Loans - At Amortised Cost
(Unsecured unless otherwise stated)
Non-current
(i) Security Deposits
Considered Good
Credit Impaired
Less: Provision for Doubtful Security Deposits
(ii) Loans to Related Parties (Refer Note 39)
Considered Good*
Credit Impaired
Less: Allowance for Doubtful Loans
(iii) Other Loans
Loans to Employees
Considered Good
Total
Current
(i) Security Deposits
Considered Good
Credit Impaired
Less: Allowances for Doubtful Security Deposits
(ii) Loans to Related Parties (Refer Note 39)
Considered Good*
Credit Impaired
Less: Allowance for Doubtful Loans
(iii) Other Loans
Loans to Employees
Considered Good
Total
* Reclassified as Held for Sale. (Refer Note 17a.)
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
75.01
30.61
105.62
30.61
75.01
Nil
55.66
55.66
55.66
Nil
5.87
80.88
30.70
4.78
35.48
4.78
30.70
1.99
30.89
32.88
30.89
1.99
0.31
33.00
84.32
27.87
112.19
27.87
84.32
Nil
55.53
55.53
55.53
Nil
6.24
90.56
17.32
5.77
23.09
5.77
17.32
69.43
29.28
98.71
29.28
69.43
0.43
87.18
9.
Finance Lease Receivable - At Amortised Cost
(Unsecured unless otherwise stated)
Accounting Policy
Leases are classified as finance lease whenever the terms of the lease transfer substantially all the risks and rewards incidental
to ownership to the lessee. All other leases are classified as operating lease. Amount 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.
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term.
383
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
9.
Finance Lease Receivable - At Amortised Cost (Contd.)
(Unsecured unless otherwise stated)
Finance Lease Receivable - Non-current
Finance Lease Receivable - Current
Total
9.1
Leasing Arrangements
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
588.92
33.20
622.12
565.62
37.90
603.52
(i)
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 to be determined as per the PPAs. The Group has recognised
an amount of ₹ 88.91 crore (31st March, 2019 ₹ 86.70 crore) as income for finance lease during the year ended
31st March, 2020.
(ii) 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. The Group has recognised an amount of ₹ 2.64
crore (31st March, 2019 ₹ 0.56 crore) as income for finance lease during the year ended 31st March, 2020.
9.2 Amount receivable under Finance Lease
Particulars
Less than a year
One to two years
Two to three years
Three to four years
Four to five years
Total (A)
More than five years (B)
Total (A+B)
Unearned finance income
Present Value of Minimum Lease Payments Receivable
Minimum Lease Payments
As at 31st March, 2020
Minimum Lease Payments
As at 31st March, 2019
₹ crore
117.66
114.26
113.24
112.13
111.10
568.39
680.20
1,248.59
626.47
622.12
110.26
107.57
106.85
106.00
105.04
535.72
735.84
1,271.56
668.04
603.52
Lessor - Operating Lease
The Group has entered into operating leases for its certain building, plant and machinery and other equipments.
These typically have lease terms of between 1 and 10 years. The Group has recognized an amount of ₹ 10.81 crore
(31st March, 2019 - ₹ 15.51 crore) as rental income for operating lease during the year ended 31st March, 2020.
384
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
10. Other Financial Assets - At Amortised Cost, unless otherwise stated
Non-current
(i) Receivables under Service Concession Agreement
(ii) Unbilled Revenue
(iii) Others
Unsecured, considered good
Advance towards Equity (Refer Note 1 below)
Government Grants Receivables (Refer Note 2 below)
In Deposit Accounts (with maturity more than twelve months)
Other Advances
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
199.48
200.61
95.33
81.11
181.78
22.32
36.38
43.50
283.98
578.79
2.85
29.17
2.99
0.02
35.03
316.75
Notes:
1. Odisha Electricity Regulatory Commission (OERC) had issued a request for proposal (RFP) for sale of controlling interest in distribution business
of Central Electricity Supply Utility of Orissa. The Group had bid for it and has been identified as the successful bidder. As per the requirement
of RFP, the Group has deposited ₹ 178.50 crore with OERC. Pending vesting order for the completion of sale, the amount deposited is disclosed
as non-current financial assets and will be converted to equity after passing of the vesting order by OERC.
2. 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.
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
Current
(i) Accruals
Unsecured, considered good
Interest Accrued on Inter-corporate/Bank Deposits
Interest Accrued on Investments
Interest Accrued on Finance Lease Receivable
Interest Accrued on 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 Property, Plant & Equipment
Insurance Claims Receivable
Government Grants Receivables
Recoverable from consumers
Other Advances
carried forward ..........................
4.91
3.51
6.85
2.64
1.40
19.31
1.40
17.91
2.88
Nil
301.64
736.76
2.64
0.10
30.40
232.17
87.93
1,391.64
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
Nil
75.56
220.38
385
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
10. Other Financial Assets - At Amortised Cost, unless otherwise stated (Contd.)
brought forward ..........................
Unsecured, considered doubtful
Other Advances
Less: Allowances for Doubtful Advances
Total
11. Tax Assets
Non-current Tax Assets
Advance Income-tax (Net)
Total
Current Tax Assets
Advance Income-tax (Net)
Total
12. Deferred Tax
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,391.64
220.38
2.63
1,394.27
(2.63)
1,391.64
2.70
223.08
(2.70)
220.38
1,412.43
241.59
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
342.00
342.00
1.10
1.10
238.01
238.01
2.67
2.67
Accounting Policy
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
consolidated Ind AS 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 (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.
386
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
12. Deferred Tax (Contd.)
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 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.
12 a. Deferred Tax Assets
Deferred Tax Assets
Deferred Tax Liabilities
Total - Net Deferred Tax Assets
2019 - 20
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
Lease Liability
Others
Deferred Tax Liabilities in relation to:
Property, Plant and Equipment*
Others
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
4,432.60
4,358.36
74.24
3,669.65
3,580.16
89.49
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
49.52
9.27
3,172.93
26.63
156.10
148.14
105.14
Nil
1.92
3,669.65
3,575.55
4.61
3,580.16
(7.83)
0.70
0.76
(26.48)
(79.29)
36.42
(28.38)
859.92
5.00
760.82
747.25
30.95
778.20
Nil
Nil
Nil
Nil
2.13
Nil
Nil
Nil
Nil
41.69
9.97
3,173.69
0.15
78.94
184.56
76.76
859.92
6.92
2.13
4,432.60
Nil
Nil
Nil
4,322.80
35.56
4,358.36
Net Deferred Tax Assets
89.49
(17.38)
2.13
74.24
* including Right of Use and Intangible Assets
387
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
12. Deferred Tax (Contd.)
2018-19
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
* including Intangible Assets
12 b. Deferred Tax Liabilities
Deferred Tax Assets
Deferred Tax Liabilities
Total - Net Deferred Tax Liabilities
2019 - 20
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 Business Losses
Carry Forward Capital Loss
MAT Credit Entitlement
Government Grant
Deferred Revenue -Ind AS 115
Lease Liability
Others
388
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
53.09
10.98
3,481.33
149.07
195.47
101.73
132.52
Nil
(3.57)
(1.71)
(308.40)
(122.44)
(39.37)
3.41
15.62
1.92
4,124.19
(454.54)
3,986.75
19.27
4,006.02
(411.20)
(14.66)
(425.86)
118.17
(28.68)
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
49.52
9.27
3,172.93
26.63
156.10
105.14
148.14
1.92
3,669.65
3,575.55
4.61
3,580.16
89.49
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,838.55
3,012.59
1,174.04
2,025.06
3,081.87
1,056.81
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
58.47
73.79
142.17
Nil
343.62
1364.42
2.19
30.90
Nil
9.50
0.83
0.36
(72.53)
77.92
(45.65)
(190.69)
(1.24)
(1.89)
12.40
15.52
Nil
18.46
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
59.30
92.61
69.64
77.92
297.97
1,173.73
0.95
29.01
12.40
25.02
2,025.06
(204.97)
18.46
1,838.55
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
12. Deferred Tax (Contd.)
2019 - 20
Deferred tax liabilities in relation to
Property, Plant and Equipments*
Investments at Fair Value
Distribution on Perpetual Bonds
Borrowings
Deferred Revenue -Ind AS 115
Revaluation on Consolidation
Derivative financial instruments designated for hedging
Undistributed Profits of Joint Ventures
Others
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
2824.46
0.38
24.90
9.66
18.07
202.69
Nil
Nil
1.71
3,081.87
(86.50)
(0.38)
(24.90)
(0.27)
5.93
(95.02)
Nil
92.90
(0.33)
(108.57)
Nil
Nil
Nil
Nil
Nil
Nil
32.43
7.09
(0.23)
39.29
2,737.96
Nil
Nil
9.39
24.00
107.67
32.43
99.99
1.15
3,012.59
Net Deferred Tax Liabilities
1,056.81
96.40
20.83
1,174.04
* including Finance lease receivables, Right of Use and Intangible Assets
2018 - 19
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
MAT Credit Entitlement
Government Grant
Deferred Revenue -Ind AS 115
Others
Deferred tax liabilities in relation to
Property, Plant and Equipments*
Investments at Fair Value
Distribution on Perpetual Bonds
Borrowings
Deferred Revenue -Ind AS 115
Revaluation on Consolidation
Others
Opening
Balance
Recognised in
Profit or Loss
Recognised
in Other
Comprehensive
Income
₹ crore
Closing Balance
53.02
81.23
244.74
4.34
757.40
1241.62
17.73
Nil
1.95
5.45
(7.60)
(102.57)
(4.34)
(413.78)
122.80
(15.54)
30.90
7.75
2,402.03
(376.93)
2,665.62
0.24
24.90
10.40
4.34
213.09
Nil
158.84
0.12
Nil
(0.74)
13.73
(10.40)
1.71
Nil
0.16
Nil
Nil
Nil
Nil
Nil
Nil
(0.20)
(0.04)
Nil
0.02
Nil
Nil
Nil
Nil
Nil
58.47
73.79
142.17
Nil
343.62
1,364.42
2.19
30.90
9.50
2,025.06
2,824.46
0.38
24.90
9.66
18.07
202.69
1.71
2,918.59
163.26
0.02
3,081.87
Net Deferred Tax Liabilities
516.56
540.19
0.06
1,056.81
*including Finance lease receivables and Intangible Assets
Notes:
i. During the year, the Group has reassessed the recoverability of unrecognised MAT Credit and accordingly considering the uncertainty over the
realisability, the Group has not recognised MAT Credit amounting to ₹ 189.53 crore (31st March, 2019 - 276.87 crore).
389
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
12. Deferred Tax (Contd.)
ii. Considering the uncertainty over the realisibility, the Group has not recognised deferred tax asset to the extent of ₹ 376.57 crore (31st March,
2019 - ₹ 309.73 crore) on capital loss on sale of investments and indexation benefits on investments classified as asset held for sale.
iii. Pursuant to the Taxation Laws (Amendment) Act, 2019 which is effective from 1st April, 2019, domestic companies have an option to pay income
tax at 22% plus applicable surcharge and cess (‘new tax regime’) subject to certain conditions. Based on the Group's assessment of the expected
year of transition to the new tax regime at each entity level where the new tax regime is applicable, the Group has remeasured the deferred tax
liabilities and also reassessed the recoverability of Minimum Alternate Tax (‘MAT’) credit. Accordingly, the Group has recognized deferred tax
income of ₹ 159.25 crore after adjusting the MAT credit write off. Further, the Group has also remeasured its regulatory asset balance against
deferred tax liabilities and has recognized expense of ₹ 98.00 crore for distribution business and ₹ 167.00 crore for generation and transmission
business.
iv. Unrecognised deferred tax assets on tax losses / unused tax credit for which no deferred tax assets is recognised amount to ₹ 4,261.20 crore and
₹ 3,512.67 crore as at 31st March, 2020 and 31st March, 2019 respectively. The expiry of unrecognised Deferred Tax Asset is as detailed below:
As at 31st March, 2020
Unrecognised deferred tax assets
Business losses
Unabsorbed depreciation
MAT credit
Capital Loss
Total
As at 31st March, 2019
Unrecognised deferred tax assets
Business losses
Unabsorbed depreciation
MAT credit
Capital Loss
Total
Within
one year
Greater than
one year, less
than five years
94.14
Nil
Nil
2.19
96.33
553.87
Nil
3.99
Nil
Greater
than five
years
819.69
Nil
185.55
360.27
No
expiry
date
Nil
2,227.40
Nil
14.11
₹ crore
Closing balance
1,467.69
2,227.40
189.54
376.57
557.86
1,365.51
2,241.51
4,261.20
Within
one year
Greater than
one year, less
than five years
30.98
490.03
Nil
Nil
Nil
Nil
8.01
Nil
Greater
than five
years
532.54
Nil
268.86
309.73
No
expiry
date
Nil
1,872.52
Nil
Nil
₹ crore
Closing balance
1,053.55
1,872.52
276.87
309.73
30.98
498.04
1,111.13
1,872.52
3,512.67
v. The Group has not recognised any deferred tax liabilities for taxes amounting to ₹ 2,382.71 crore (31st March, 2019 ₹ 1,549.25) crore that would
be payable on the Group's share in undistributed 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 foreseeable future.
12 c. Reconciliation of Deferred Tax Expense amount recognised in Profit or Loss and Other Comprehensive
Income
Recognised in profit or loss
Recognised in Other
Comprehensive Income
₹ crore
For the year ended
31st March, 2020
For the year ended
31st March,2019
For the year ended
31st March, 2020
For the year ended
31st March,2019
17.38
28.68
(2.13)
Nil
96.40
540.19
20.83
0.06
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
Deferred Tax Liabilities (Net) - Discontinued
Operations (Refer Note 17 c)
Net increase/(decrease) in Deferred Tax Liabilities
Deferred Tax Expense (Net)
146.19
562.93
18.70
390
32.41
(5.94)
Nil
Nil
0.06
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
13. Other Assets
Non-current
(i) Capital Advances
Unsecured, considered good
Doubtful
Less: Allowance for Doubtful Advances
(ii) Security Deposits
Unsecured, considered good
(iii) Balances with Government Authorities
Unsecured, considered good
Advances
Amount Paid Under Protest
VAT/Sales Tax Receivable
(iv) Unamortised Premium for Leasehold Land (Refer Note 4b)
Unsecured, considered good
(v) Deferred 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 (Refer Note 4b)
Unsecured, considered good
(iii) Other Loans and Advances
Unsecured, considered good
Prepaid Expenses
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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
49.47
0.16
49.63
0.16
49.47
1.64
25.44
68.76
28.92
123.12
Nil
59.34
0.16
59.50
0.16
59.34
228.64
166.61
70.91
63.16
300.68
317.90
30.53
26.50
1.52
960.84
18.00
Nil
980.36
Nil
980.36
1,185.12
173.13
0.84
173.97
Nil
103.46
422.51
Nil
1.11
30.07
36.66
2.61
Nil
1.68
598.10
1.68
596.42
770.39
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
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
391
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 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.
Property acquired or being constructed for sale in the ordinary course of business, rather than to be held for rental or
capital appreciation, is held as inventory property and is measured at the lower of cost and net realisable value (NRV).
Principally, this is residential property that the Group develops and intends to sell before, or on completion of, development.
Cost incurred in bringing each property to its present location and condition includes:
- Freehold and leasehold rights for land
- Amounts paid to contractors for development
- Planning and design costs, costs of site preparation, professional fees for legal services, property transfer taxes,
development overheads and other related costs
NRV is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date, less
estimated costs of completion and the estimated costs necessary to make the sale. When an inventory property is sold, the
carrying amount of the property is recognised as an expense in the period in which the related revenue is recognised. The
carrying amount of inventory property recognised in profit or loss is determined with reference to the directly attributable
costs incurred on the property sold and an allocation of any other related costs based on the relative size of the property sold.
Inventories
(a) Raw Materials and Fuel
Fuel - Stores
Fuel-in-Transit
Others
(b) Work-In-Progress
(c) Finished goods
(d) Stores and Spares
Stores and Spare Parts
(e) Loose Tools
(f) Others
Property under Development
Total
As at
31st March, 2020
₹crore
As at
31st March, 2019
₹ crore
828.31
157.55
197.80
3.99
96.99
805.77
214.30
156.89
2.93
82.41
316.06
323.27
1.08
1.29
150.57
119.56
1,752.35
1,706.42
Notes:
1. The Group has recognised ₹ 19.32 crore (31st March, 2019 - ₹ 4.39 crore) as an expense for the write down of unserviceable stores and spares
inventory.
2. Refer Note 21 for Inventories pledged as security for liabilities.
392
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
15. Current Investments
I
Investments carried at Amortised Cost
Current Portion of Long-term Investments
Statutory Investments
Deferred Taxation Liability Fund Investments
Government Securities (Unquoted) fully paid up
II
Investments carried at Fair Value through Profit and Loss
Unquoted
(a) Investment in Mutual Funds
Total
Notes:
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
Nil
Nil
42.00
42.00
699.51
699.51
124.98
124.98
699.51
166.98
Aggregate Carrying Value of Unquoted Investments
699.51
166.98
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, 2020
₹ crore
As at
31st March, 2019
₹ crore
(a) Balances with Banks:
(i)
In Current Accounts
(ii)
In Deposit Accounts (with original maturity of less than three months)
(b) Cheques on Hand
(c) Cash on Hand
Cash and Cash Equivalents as per Balance Sheet
Bank Overdraft attributable to Continuing Operations (Refer Note 27)
Cash and Cash Equivalents as per Statement of Cash Flows - Continuing Operation
(a) Balances with Banks:
(i)
In Current Accounts
(b) Book Overdraft (Refer Note 17c)
Cash and Cash Equivalents as per Statement of Cash Flows - Discontinuing Operation
Cash and cash Equivalent pertaining to Asset Classified as Held For Sale
Cash and Cash Equivalents as per Statement of Cash Flows
935.27
919.77
6.44
0.02
1,861.50
(34.71)
1,826.79
7.62
(0.02)
7.60
Nil
1,834.39
320.87
311.90
11.69
0.99
645.45
(590.89)
54.56
6.13
(0.02)
6.11
0.85
61.52
393
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
16 a. Cash and Cash Equivalents (Contd.)
Reconciliation of liabilities from Financing Activities
Particulars
Non-current Borrowings (including Current
Maturity of Non-current Borrowings)
Current Borrowings (excluding Bank
Overdraft)
Lease Liabilities (Refer Note 3.13)
Total
Particulars
Non-current Borrowings (including Current
Maturity of Non-current Borrowings)
Current Borrowings (excluding Bank
Overdraft)
Total
As at
1st April,
2019
Cash flows
Proceeds
Repayment
Reclassification
Reclassification
as part of
Discontinued
Operations
₹ crore
As at
31st March,
Foreign
Exchange Others
2020
34,630.66
7,188.37
(5,607.42)
(79.75)
Nil
391.47
8.24
36,531.57
13,284.49
3,472.68
42,412.07
Nil
(44,100.06)
(21.30)
51,387.83
49,600.44
(49,728.78)
166.29
Nil
86.54
Nil
Nil
Nil
38.80
8.06
Nil 108.84
11,809.65
3,560.22
430.27 125.14
51,901.44
As at
1st April,
2018
Cash flows
Proceeds
Repayment
Reclassification
Reclassification
as part of
Discontinued
Operations
₹ crore
As at
31st March,
Foreign
Exchange Others
2019
29,761.96
10,867.07
(9,978.26)
3,766.57
(135.48)
338.00
10.80
34,630.66
18,708.03
48,469.99
34,846.52
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
16 b. Other Balances with Banks- At Amortised Cost
(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.
17 a. Assets Classified as Held For Sale
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
214.23
124.12
18.45
232.68
17.88
142.00
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.
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:
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
-
-
394
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
17 a. Assets Classified as Held For Sale (Contd.)
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 consolidated Ind AS 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.
Land [Refer Note (i) and (iv)]
Building [Refer Note (ii) and (iv)]
Other Property, Plant and Equipment [Refer Note (iii) and (iv)]
Investments carried at Fair Value through Other Comprehensive Income [Refer Note (v)]
Investments in Associates and Joint Ventures [Refer Note (vi)]
Investments in Subsidiaries [Refer Note (vii)]
Loan to and other receivables from Joint Venture [Refer Note (vi)]
Transmission lines - Capital Work in Progress [Refer Note (viii)]
Other Assets [Refer Note (vii)]
Assets of Discontinued Operations [Refer Note 17 (c)]
Total
17 b. Liabilities directly associated with Assets Classified as Held For Sale
Liabilities related to Other Assets
Liabilities of Discontinued Operations [Refer Note 17 (c)]
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
301.66
8.50
1,300.67
22.81
2,562.59
Nil
22.83
127.70
26.23
1,880.07
6,253.06
310.28
9.75
155.59
38.65
2,479.29
Nil
18.59
Nil
26.23
2,064.30
5,102.68
As at
31st March, 2020
₹ crore
30.46
1,032.07
1,062.53
As at
31st March, 2019
₹ crore
26.23
966.27
992.50
Notes:
(i)
Land at Tiruldih ₹ 1.43 crore (net of impairment loss of ₹ 34 crore) (31st March, 2019 - ₹ 9.72 crore).
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) Land at Vadaval ₹ 3.21 crore (31st March, 2019 - ₹ 3.21 crore).
(c)
(d) Land at Hadapsar ₹ 0.08 crore (31st March, 2019 - ₹ 0.08 crore).
(e)
Land at Naraj Marthapur ₹ 81.38 crore (net of impairment loss of ₹ 37 crore) (31st March, 2019 - ₹ 81.38 crore).
Land at Dehrand ₹ 215.56 crore (31st March, 2019 - ₹ 215.56 crore).
(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) Building at Erangal ₹ Nil (31st March, 2019 - ₹ 0.23 crore).
(b) Building at Panvel ₹ 0.48 crore (31st March, 2019 - ₹ 0.48 crore).
(c) Building at Peninsula ₹ 8.02 crore (31st March, 2019 - ₹ 8.02 crore).
(d) Building at Metropolitan has been sold during the year (31st March, 2019 - ₹ 0.89 crore).
(e) Building at Oil Tankage Unit, Trombay ₹ Nil crore (31st March, 2019 - ₹ 0.13 crore).
(iii) The Group has decided to sell/transfer following plant and equipment and consequently classified as assets held for sale at lower of carrying
Ships ₹ 1,280.46 crore (31st March, 2019 - ₹ Nil)
amount and fair value less cost to sell:
(a)
(b) Helicopters ₹ 0.17 crore (31st March, 2019 - ₹ Nil)
(c) Rithala power generation plant ₹ 20.04 crore (31st March, 2019 - ₹ 20.04 crore). Impairment recognised for the year ₹ Nil (31st March, 2019
₹ 88.34 crore)
(iv) (a) During the year, the Group has reclassified following assets from held for sale to Property, plant and equipment. No impairment loss has
been recognised on reclassification as the Group expected 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:
- Building at Erangal ₹ 0.23 crore (31st March, 2019 - ₹ 0.23 crore)
- Oil Tankage unit at Trombay [ Land ₹ 0.04 crore (31st March, 2019 - ₹` 0.04 crore), Building ₹ 0.13 crore (31st March, 2019 -₹` 0.13 crore)
and Plant and Machinery ₹ 4.55 crore (31st March, 2019 - ₹` 4.55 crore)]
(b) During the previous year, the Group signed a binding term sheet for sale of its 32 MW wind project in Maharashtra. As the sale transaction
was not concluded in this financial year and the Group is not pursuing the sale anymore, these assets having a carrying value of ₹ 131.00
crore has been ceased to be classified as asset held for sale.
395
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
17 b. Liabilities directly associated with Assets Classified as Held For Sale (Contd.)
(v)
In the earlier years, the Group had decided to divest its investments carried at fair value through other comprehensive income in Tata
Teleservices (Maharashtra) Ltd and consequently classified as assets held for sale at lower of carrying amount and fair value less cost to sell ₹
22.81 crore (31st March, 2019 - ₹ 38.65 crore).
(vi) (a)
In the earlier years, the Group had signed definitive agreements for sale of PT Arutmin Indonesia and its associated infrastructure and
trading companies and the sale consideration of USD 400.92 million is being expected to be received in a phased manner over next
few years. Accordingly, the investments (including investment in PT Mitratama Perkasa) have been classified as assets held for sale at ₹
1931.60 crore as at 31st March, 2020 (31st March, 2019 - ₹ 1,768.97 crore).
(b) During the previous year, the Group decided to divest its investment in Itezhi Tezhi Power Corporation (‘ITPC’) of ₹ 631.00 crore along
with loan and other receivables from ITPC amounting to ₹ 18.59 crore and ₹ 4.24 crore respectively. Accordingly, the said investment
along with loan and other receivables has been classified as held for sale. 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 as at 31st March, 2020.
(c) During the year, the Group has reassessed its plan to sell investment in Tata Projects Limited (Associate company of the Group) and has
reclassified its investment in Tata Projects from asset held for sale to Investments in Associate accounted under equity method. (Refer Note 44).
(vii) During the previous year, the Group has decided to divest its investments in equity and preference shares of its subsidiary, TCL Ceramics Ltd
(formerly known as Tata Ceramics Ltd). Accordingly, the said investments have been classified as held for sale at ₹ Nil (Net of impairment of
₹14.21 crore). Pursuant to the Share Purchase Agreement ('Agreement') dated 4th January, 2020, the Group has transferred its Equity and
Preference share to the purchasers as a part of the conditions mentioned in the Agreement subject to final closing. The said shares has been
pledged back to the Group by the purchasers till the final closure. As all the conditions related to the closing has not been completed, the
Group believes that it still controls TCL Ceramics Ltd. till all the conditions are fulfilled. Hence, no impact of sale of share has been recognised
in the Consolidated Ind AS financial statements. The impact of the sale on the financial statement will not be significant.
(viii) During the year, Maharashtra Electricity Regulatory Commission (‘MERC’) has ordered termination of Vikhroli Transmission Lines project
carried out by the Group and decided to invite fresh bids for completion of the project. MERC has also ordered that costs incurred by the
Group shall be reimbursed by the successful bidder. Accordingly, the Group has classified the said project having carrying amount of ₹ 127.70
crore as held for sale during the year.
17 c. Assets Classified as Held For Sale - Discontinued Operations
In the earlier year, the shareholder of the Parent 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.
Results of Strategic Engineering Division for the year are presented below:
Income
Revenue from Operations
Expenditure
Cost of Components Consumed
Employee Benefits Expense
Finance Costs
Other Expenses
Total Expenses
Profit/(Loss) before tax from Discontinued Operations
Impairment Loss on Remeasurement to Fair Value (Refer Note Below)
Tax Expense/(Credit)
Current Tax
Deferred Tax
Total Tax Expense/(Credit)
Profit/(Loss) for the year from Discontinued Operations
Other Comprehensive Income/(Expense)
Tax on Other Comprehensive Income
Total Comprehensive Income/(Expense)
The above loss is attributable to the owners of the Parent Company.
396
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
343.77
143.59
244.22
90.04
36.15
55.00
425.41
(81.64)
(361.00)
Nil
(32.41)
(32.41)
(410.23)
0.20
Nil
(410.03)
138.10
110.85
36.33
50.13
335.41
(191.82)
Nil
(71.92)
5.94
(65.98)
(125.84)
(1.14)
0.40
(126.58)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes 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
Impairment Loss on Remeasurement to Fair Value
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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
382.27
422.58
124.13
356.71
3.68
35.40
83.30
663.67
169.33
2,241.07
(361.00)
1,880.07
594.76
27.68
258.99
9.76
140.88
1,032.07
848.00
302.06
418.75
123.42
347.10
3.66
74.66
104.15
261.96
428.54
2,064.30
Nil
2,064.30
679.31
30.22
190.00
17.91
48.83
966.27
1,098.03
Note:
During the year, the Group has reassessed the fair value of consideration receivable from TASL and has recognised an impairment loss of ₹ 361.00
crore in the Consolidated Ind AS financials statements. The fair value on consideration has been determined based on the expected value of the
consideration using discounted present value technique. The fair value has been categorised under Level 3 inputs, the key assumption being
achievement/non-achievement of milestones as defined in the scheme of arrangement.
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)
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
127.80
(44.99)
(81.32)
1.49
6.11
7.60
₹ crore
18.67
(87.35)
72.95
4.27
1.84
6.11
1. During the year, the SED has incurred Research and Development expenditure including capital expenditure
amounting to ₹ 10.02 crore (31st March, 2019 - ₹ 43.62 crore).
2. Estimated amount of Contracts remaining to be executed on capital account and not provided for is ₹ 66.22 crore
(31st March, 2019 ₹ 55.57 crore).
3. Contingent Liability of excise duty amounts to ₹ 14.28 crore (31st March, 2019 - ₹ 14.28 crore).
397
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
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 Regulatory Commission (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 Group presents separate line items in the balance sheet for:
i.
ii. the total of all regulatory deferral account credit balances and related deferred tax balances.
the total of all regulatory deferral account debit balances and related deferred tax balances; and
A separate line item is presented in the Consolidated Ind AS statement of profit and loss for the net movement in regulatory
deferral account and deferred tax recoverable payable.
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, 2020
As at
31st March, 2019
₹ crore
₹ crore
Nil
Nil
5,480.17
5,480.17
5,758.13
5,758.13
(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.
MERC Multi Year Tariff Regulations, 2015 (MYT Regulations), is applicable for the period beginning from 1st April,
2016 to 31st March, 2020. These regulations require MERC to determine tariff in a manner wherein 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 MYT
Regulations.
(ii) Reconciliation of Regulatory Assets/Liabilities of distribution business as per Rate Regulated Activities as on 31st
March, 2020, 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 Group's Generation business
(A)
(B)
(C)
(D)
398
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
5,758.13
5,819.56
8,569.70
2,666.99
(11,688.37)
(451.68)
24.00
(15.28)
8,192.16
2,770.78
(11,303.13)
(340.19)
29.15
(193.76)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
18. Regulatory Deferral Account (Contd.)
Net movement in Regulatory Deferral Balances in respect of
earlier years (Refer note below)
Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income)
Regulatory Assets/(Liabilities) on Deferred Tax Expense/(Income)
on account of new tax regime
(E)
(F)
(G)
Closing Regulatory Asset (Net of Liabilities)
(A+B+C+D+E+F+G)
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
(21.32)
284.32
(98.00)
5,480.17
274.26
169.11
Nil
5,758.13
2
Note:
1 Pursuant to receipt of true-up tariff order from the Regulatory Commission for the years 2017-18 and 2018-19 (31st March, 2019 - 2014-15 to
2016-17), the Group had recognised net expenditure of ₹ 15.83 crore (31st March, 2019 net income of ₹ 91.95 crore) comprising of a credit of ₹
5.49 crore (31st March, 2019 - ₹ 274.26 crore) in regulatory income and a charge of ₹ 21.32 crore (31st March, 2019 - ₹ 182.31 crore) to revenue
from operations.
In respect of the Group's power distribution business in Delhi, Delhi Electricity Regulatory Commission (DERC) vide its order dated 31 July, 2019
has trued up regulatory deferral account balance up to 31 March, 2018 at ₹ 2,254.50 crore as against ₹ 4,399.85 crore as per financial books of
accounts. The difference in regulatory deferral account is largely due to provisional truing up of capitalisation, disallowance of de-capitalised
property, plant and equipment, its corresponding impact on return on capital employed (ROCE), income tax and carrying cost. The difference
in regulatory deferral account also includes impact of power purchase cost of Rithala Power Plant allowed by the DERC vide order dated 11
November, 2019 and other previous review/APTEL appeal orders. The disallowances not as per prevailing law, facts and figures have been
challenged in Review Petition or at APTEL. For truing up of capitalisation, the DERC has initiated the exercise of physical verification of property,
plant and equipment which is at advance stage of completion.
19 a. Share Capital
Authorised
Equity Shares of C 1/- each
Cumulative Redeemable Preference Shares of C 100/- each
Issued
Equity Shares [including 28,32,060 shares (31st March, 2019 -
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, 2019 - 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, 2019 -
₹ 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]
As at 31st March, 2020
₹ crore
Number
As at 31st March, 2019
₹ crore
Number
350,00,00,000
2,29,00,000
350.00
350,00,00,000
229.00
579.00
2,29,00,000
350.00
229.00
579.00
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
0.04
270.44
0.06
270.50
399
Add: Equity Shares forfeited - Amount paid
Total Subscribed and Paid-up Share Capital
16,52,300
0.06
16,52,300
270.50
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 19 a. Share Capital (Contd.)
(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, 2020
As at 31st March, 2019
Number
₹ crore
Number
₹ crore
270,64,25,810
270.50
270,64,25,810
Nil
Nil
Nil
270,64,25,810
270.50
270,64,25,810
270.50
Nil
270.50
(ii)
Terms/rights attached to Equity Shares
The Parent 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 Parent Company, the holders of Equity Shares will be entitled to receive remaining assets
of the Parent 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 Parent Company
Equity Shares of ₹ 1/- each fully paid
Tata Sons Pvt. Ltd.
ICICI Prudential Bharat Consumption Funds*
Life Insurance Corporation of India
Matthews Pacific Tiger Fund
As at 31st March, 2020
As at 31st March, 2019
Number
% Holding
Number
% Holding
95,39,46,984
21,83,11,309
17,15,81,237
18,03,16,487
35.27
83,97,99,682
8.07
6.34
6.67
11,38,29,237
20,97,31,735
18,03,16,487
31.05
4.21
7.75
6.67
* Shareholding has been reported based on common permanent Account Number
19 b. Unsecured Perpetual Securities
11.40% Unsecured Perpetual Securities
Add: Movement during the year
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
1,500.00
Nil
1,500.00
Nil
1,500.00
1,500.00
In an earlier year, the Parent 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 Parent 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 Parent Company, if during the six
months preceding the relevant distribution payment date, the Parent 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 Parent Company and the Parent Company does not have any redemption
obligation, these are considered to be in the nature of equity instruments.
400
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
20. Other Equity
General Reserve
Securities Premium
Capital Reserves
Statutory Reserves
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
Special Reserve Fund
Opening Balance
Add/(Less): Amount transferred from Retained Earnings
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 5 below)
Transfer from Debenture Redemption Reserve (Net)
Less: Distribution on Unsecured Perpetual Securities (Refer Note 4 below)
Other Comprehensive Income/(Expense) arising from Remeasurement of Defined Benefit
Obligation (Net of Tax)
Transfer from Equity Instrument through Other Comprehensive Income (Refer Note 5 below)
Less: 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
Closing Balance
Equity Instrument through Other Comprehensive Income
Opening balance
Add/(Less): Transfer to Retained Earnings (Refer Note 5 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
carried forward ..........................
As at
31st March, 2020
As at
31st March, 2019
₹ crore
4,086.53
5,647.80
232.09
660.08
728.90
(90.70)
638.20
515.76
Nil
515.76
122.59
1.48
124.07
3,265.79
1,017.38
666.34
90.70
170.76
56.12
Nil
351.99
72.37
1.48
Nil
1,121.70
4,387.49
698.52
(666.34)
(39.72)
(7.54)
576.95
837.68
1,414.63
17,699.11
₹ crore
4,086.53
5,647.80
232.09
660.08
1,073.16
(344.26)
728.90
15.76
500.00
515.76
119.05
3.54
122.59
2,452.44
2,356.19
Nil
344.26
171.00
17.76
771.15
351.99
71.66
3.54
500.00
813.35
3,265.79
(44.77)
771.15
(27.86)
698.52
367.67
209.28
576.95
16,535.01
401
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
20. Other Equity (Contd.)
bought forward ..........................
Effective Portion of Cash Flow Hedge
Opening balance
Add/(Less): Effective Portion of Cash Flow Hedge for the year
Closing Balance
Total
As at
31st March, 2020
As at
31st March, 2019
₹ crore
17,699.11
₹ crore
16,535.01
Nil
96.41
96.41
(1.26)
1.26
Nil
17,795.52
16,535.01
Includes gain on fair valuation of land which is not available for distribution ₹ 362.34 crore (31st March, 2019 - ₹ 362.34 crore).
Notes:
1.
2. The shareholders of the parent company in their meeting held on 18th June, 2019 approved final dividend of ₹ 1.30 per share aggregating ₹
351.99 crore (excluding dividend distribution tax) for the financial year 2018-19. The said dividend was paid to the holders of fully paid equity
shares on 20th June, 2019.
In respect of the year ended 31st March, 2020, the directors have proposed a dividend of ₹ 1.55 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 Consolidated Ind AS
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 ₹ 419.68 crore (31st March, 2019 - ₹ 351.99 crore).
3.
4. Pursuant to the amendment in Indian Accounting Standard Ind AS 12 'Income Taxes' effective from 1st April, 2019, the Group has recognised
the income tax consequence on interest on perpetual securities in the profit and loss which was earlier recognised directly in other equity and
has restated the figures for previous periods presented. Accordingly, the profit after tax for the year ended 31st March, 2019 is higher by ₹ 60.12
crore as compared to previous year consolidated Ind AS financial statement. There is no impact on the “Other Equity” of the Group.
5. Represents gain/(loss) on sale of certain investments carried at fair value through other comprehensive income transferred to Retained
Earnings.
Nature and purpose of reserves
General Reserve
General Reserve is used from time to time to transfer profits from Retained Earnings for appropriation purposes. As the
General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive
income, items included in the General Reserve will not be reclassified subsequently to consolidated Ind AS statement of
profit and loss.
Securities Premium
Securities Premium 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 was 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. Pursuant to Companies (Share Capital and Debentures)
Amendment Rules, 2019 dated 16th August, 2019, the Company is not required to create Debenture Redemption Reserve
(DRR). Accordingly, the Company has not created DRR during the year and DRR created till previous years will be transferred
to retained earnings on 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.
402
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
20. Other Equity (Contd.)
Statutory Reserve
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 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 off.
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 - At Amortised Cost
(i) Unsecured
Debentures
Redeemable Non-Convertible Debentures
9,423.77
370.00
7,947.81
500.00
As at 31st March, 2020
As at 31st March, 2019
Non-current Current Maturities* Non-current Current Maturities*
₹ crore
₹ crore
₹ crore
₹ crore
Term Loans
From Banks
Deferred Payment Liabilities-Sales Tax Deferral
Others
Buyer's Credit
2,185.01
2.83
943.28
20.26
3,098.35
8.50
346.67
22.12
Nil
Nil
Nil
224.00
11,611.61
1,333.54
11,054.66
1,092.79
(ii) Secured
Debentures
Redeemable Non-Convertible Debentures
2,460.13
87.25
1,436.67
41.00
Term Loans
From Banks
From Others
carried forward ...........................
16,596.40
2,027.00
21,083.53
2,375.77
39.87
2,502.89
16,658.57
1,987.13
20,082.37
2,167.11
45.93
2,254.04
403
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
21. Non-current Borrowings - At Amortised Cost (Contd.)
bought forward ...........................
Others
Buyer's Credit
Finance Lease Obligations
As at 31st March, 2020
As at 31st March, 2019
Non-current Current Maturities* Non-current Current Maturities*
₹ crore
21,083.53
Nil
Nil
21,083.53
₹ crore
2,502.89
₹ crore
20,082.37
Nil
Nil
2,502.89
Nil
2.20
20,084.57
₹ crore
2,254.0
143.77
0.83
2,398.64
Total
32,695.14
3,836.43
31,139.23
3,491.43
* Amount disclosed under Other Current Financial Liabilities (Refer Note 23)
Security
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.
Terms of Repayment
Particulars
(i) Unsecured - At Amortised Cost
Debentures
Redeemable Non-Convertible
Debentures
Term Loans
From Banks
Deferred Payment Liabilities-Sales
Tax Deferral
(ii) Secured - At Amortised Cost
Debentures
Redeemable Non-Convertible
Debentures
Term Loans
From Banks
From Others
Amount
Outstanding
as at
31st March, 2020
FY 20-21
FY 21-22
FY 22-23
Financial Year
FY 23-24
FY 24-25
FY 25-30
₹ crore
FY 30-31
and
onwards
9,815.00
370.00
1,940.00
2,455.00
2,000.00
550.00
1,000.00
1,500.00
3,130.58
943.28
558.66
1,628.64
23.09
20.26
2.83
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
2,554.44
87.25
247.25
559.75
427.25
259.75
810.69
162.50
19,002.21 2,375.77
39.87
2,071.32
3,456.32
31.40
1,749.52
69.98
1,753.06
80.50
1,567.45
91.04
6,175.15
1,552.79
1,924.94
205.74
36,596.64 3,836.43 6,236.46 6,462.89 4,260.81 2,468.24 9,538.63
3,793.18
Less: Impact of recognition of
borrowing at amortised cost
using effective interest method
under Ind AS
Less: Unamortised portion of
fair value of Corporate Guarantee.
61.40
3.67
36,531.57
Total
404
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
21. Non-current Borrowings - At Amortised Cost (Contd.)
Range of interest rates for:
1. Debentures - 8% to 10.75%
2. (a) Term loan of foreign Companies - 2.16% to 4.49%
(b) Term loan of Indian Companies - 8.15% to 9.95%
3. Term loan from others - 8.35% to 9.95%
22. Lease Liabilities
Accounting Policy
At inception of contract, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At inception or on reassessment of a contract that contains a lease component, the Group allocates consideration in the
contract to each lease component on the basis of their relative standalone price.
As a Lessee
i)
Right-of-use Assets
The Group recognises right-of-use assets at the commencement date of the lease. Right-of-use assets are measured
at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred,
lease payments made at or before the commencement date less any lease incentives received and estimate of costs
to dismantle. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the
estimated remaining useful lives of the assets, as follows:
-
- Vessels - 12.5 years
-
-
The Group presents right-to-use assets that do not meet the definition of investment property in ‘Property, plant and
equipment.
Port Intake channel- 40 years
Leasehold Land including sub-surface rights- 2 to 95 years
Plant and Machinery - 3 years
ii) Lease Liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease
payments to be made over the lease term. In calculating the present value of lease payments, the Group generally uses
its incremental borrowing rate at the lease commencement date if the discount rate implicit in the lease is not readily
determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and
reduced for the lease payments made. The carrying amount is remeasured when there is a change in future lease
payments arising from a change in index or rate. In addition, the carrying amount of lease liabilities is remeasured if
there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an
option to purchase the underlying asset.
The Group presents lease liabilities ₹ 3,560.22 crore as financial liability in the Balance Sheet.
iii) Short term leases and leases of low value of assets
The Group applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low-
value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and
leases of low value assets are recognised as expense on a straight-line basis over the lease term.
405
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
22. Lease Liabilities (Contd.)
Leasing arrangement as Lessee
The Group has lease contracts for various items of plant, machinery, land, vehicles and other equipment used in its
operations. Leases of Leasehold land including sub-surface rights generally have lease terms between 2 years and 95 years,
while plant and machinery, motor vehicles and other equipment generally have lease terms 3 years and 40 years. Generally,
the Group is restricted from assigning and subleasing the leased assets.
Amount recognised in the Statement of Profit and Loss
Depreciation of Right-of-use assets
Interest on lease liabilities
Expenses related to short term leases
Expenses related to leases of low value assets, excluding short term leases of low value assets
₹ crore
For the year ended
31st March, 2020
197.18
308.73
32.03
1.06
Refer Note (4b) for additions to Right-of-Use Assets and the carrying amount of Right-of-Use Assets as at 31st March, 2020. Further, refer Note 40.4.3
for maturity analysis of lease liabilities.
Amount recognised in the Statement of Cash Flows
Total cash outflow of leases
Non-current
Lease Liabilities
Total
Current
Lease Liabilities
Total
₹ crore
For the year ended
31st March, 2020
330.03
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
3,180.48
3,180.48
379.74
379.74
Nil
Nil
Nil
Nil
23. Other Financial Liabilities - At Amortised Cost, unless otherwise stated
Non-current
(a) Security Deposits from Customers
(b) Guarantee Commission Obligation
(c) Payables for Capital Supplies and Services
(d) Other Liabilities
Current
(a) Current Maturities of Long-term Debt (Refer Note 21)
(b) Interest accrued but not due on Borrowings-Others
(c)
(d) Investor Education and Protection Fund shall be credited
by the following amounts namely: **
Interest accrued but not due on Borrowings-Joint Ventures
Unpaid Dividend
Unpaid Matured Deposits
Unpaid Matured Debentures
(e) Other Payables
Payables for Capital Supplies and Services
carried forward ..........................
406
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
688.16
5.12
28.20
0.04
721.52
662.09
9.23
15.92
0.07
687.31
3,836.43
657.76
181.08
3,491.43
492.16
133.43
22.61
Nil
0.09
22.04
0.04
0.09
440.08
5,138.05
439.91
4,579.10
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
23. Other Financial Liabilities - At Amortised Cost, unless otherwise stated (Contd.)
brought forward ..........................
Advance Received for Sale of Investments
Contingent Consideration Payable (Fair Value through Profit and Loss)
Derivative Contracts (Net)- (Fair Value through Profit and Loss)
Security Deposits from Electricity Consumers
Security Deposits from Customers
Tender Deposits from Vendors
Interim Dividend Payable to Non-Controlling Shareholders
Financial Guarantee Obligation towards Lenders of Jointly Controlled Entity [Refer Note 6b (i) (b)]
Payable under 'Pass through arrangement' of trade receivables
Other Financial Liabilities
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
5,138.05
1,576.59
42.57
64.03
285.84
13.45
39.88
Nil
Nil
275.55
66.94
7,502.90
4,579.10
1,099.62
42.57
113.35
278.17
5.67
3.61
22.65
103.74
Nil
232.31
6,480.79
** Includes amounts outstanding aggregating ₹ 1.48 crore (31st March, 2019 - ₹ 1.25 crore) for more than seven years pending disputes and legal cases.
24. Tax Liabilities
Non Current
Income-Tax Payable (Net)
Total
Current
Income-Tax Payable (Net)
Total
25. Provisions
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
3.03
3.03
3.74
3.74
129.49
129.49
150.22
150.22
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 consolidated
Ind AS 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.
407
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
25. Provisions (Contd.)
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 consolidated Ind AS statement of profit and loss in subsequent periods. Past service costs are recognised in
consolidated Ind AS 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 Ind AS 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 Group in respect of services provided by employees up to the reporting date.
Non-current
Provision for Employee Benefits
Compensated Absences
Gratuity (Net) [Refer Note 25 (2.3)]
Post-Employment Medical Benefits [Refer Note 25 (2.3)]
Other Defined Benefit Plans [Refer Note 25 (2.3)]
Other Employee Benefits
carried forward ...........................
408
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
171.94
51.79
60.88
69.30
16.59
370.50
370.50
144.95
39.64
47.10
54.50
26.51
312.70
312.70
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
brought forward ...........................
Other Provisions
Provision for Warranties
Total
Current
Provision for Employee Benefits
Compensated Absences
Gratuity (Net) [Refer Note 25 (2.3)]
Post-Employment Medical Benefits [Refer Note 25 (2.3)]
Other Defined Benefit Plans [Refer Note 25 (2.3)]
Other Employee Benefits
Other Provisions
Provision for Warranties
Provision for Losses/Onerous Contracts
Provision for Rectification Work
Total
Movement of Other Provisions
Balance as at 1st April, 2018
Additional provisions recognised
Reductions arising from payments
Reductions arising from remeasurements or settlement
without cost
Exchange Differences
Balance as at 31st March, 2019
Balance as at 1st April, 2019
Additional provisions recognised
Reductions arising from payments
Reductions arising from remeasurements or settlement
without cost
Balance as at 31st March, 2020
As at
31st March, 2020
As at
31st March, 2019
₹ crore
370.50
36.90
36.90
₹ crore
312.70
20.90
20.90
407.40
333.60
30.50
7.99
3.12
55.43
2.06
99.10
9.18
3.64
4.50
17.32
116.42
Provision
for
Warranties
Provision
for Losses
of Joint
Ventures
Provision
for Losses/
Onerous
Contracts
Provision
for
Rectification
Work
31.29
15.14
(7.20)
Nil
Nil
39.23
39.23
10.45
(3.60)
Nil
46.08
84.50
Nil
Nil
Nil
(1.05)
83.45
83.45
Nil
Nil
23.28
9.57
(18.00)
(0.11)
Nil
14.74
14.74
3.16
(0.06)
(83.45)
Nil
(14.20)
3.64
24.32
Nil
(10.92)
Nil
Nil
13.40
13.40
Nil
(8.90)
Nil
4.50
29.33
1.66
2.56
8.40
5.13
47.08
18.33
14.74
13.40
46.47
93.55
₹ crore
Total
163.39
24.71
(36.12)
(0.11)
(1.05)
150.82
150.82
13.61
(12.56)
(97.65)
54.22
Notes:
1. 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.
2. 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.
3. The provision for losses includes provision for estimated losses on onerous contracts and provision for contingency on regulatory assets
recognised.
4. 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.
409
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
1.
25. Provisions (Contd.)
Employee benefit plan
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 recognises such contribution payable to the respective fund scheme as an expense, when an employee
renders the related service.
The Group has recognised ₹ 67.88 crore (31st March, 2019 - ₹ 56.07 crore) for provident fund contributions and ₹ 10.75 crore
(31st March, 2019 - ₹ 10.63 crore) for superannuation contributions in the Consolidated Ind AS 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.
2.1
Defined benefit plans
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 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 Parent Company does not expect
any shortfall in the foreseeable future. Having regard to the assets of the fund and the return on the investments, the Group
expects shortfall of ₹ 10.52 crore which has been provided as an expenditure during the year.
In terms of guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of Provident
fund liability based on the assumptions listed and determined the short fall of ₹ 10.52 crore as at 31st March, 2020 (31st
March, 2019 - ₹ 8.27 crore).
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 (₹ crore)
31st March, 2020
8.50% p.a.
6.50% p.a.
21.15
10.52
31st March, 2019
8.65% p.a.
7.40% p.a.
19.18
8.27
The movements in the net defined benefit obligations are as follows:
Funded Plan:
Present value
of obligation
Fair value of
plan assets
Balance as at 1st April, 2018
Current service cost
Past service cost
Interest Cost/(Income)
Amount recognised in Statement of Profit and Loss
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income)
Actuarial (gains)/losses arising from changes in demographic assumptions
Actuarial (gains)/losses arising from changes in financial assumptions
Actuarial (gains)/losses arising from experience
Amount recognised in Other Comprehensive Income
₹ crore
711.19
20.75
Nil
57.37
78.12
Nil
Nil
4.46
6.37
10.83
₹ crore
710.60
Nil
Nil
50.70
50.70
10.83
Nil
Nil
Nil
10.83
Net
amount
₹ crore
0.59
20.75
Nil
6.67
27.42
(10.83)
Nil
4.46
6.37
Nil
410
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
Funded Plan:
Employer contribution
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2019
Balance as at 31st March, 2019
Current service cost
Past service cost
Interest Cost/(Income)
Amount recognised in Statement of Profit and Loss
Remeasurement (gains)/losses
Return on plan assets excluding amounts included in interest cost/(income)
Actuarial (gains)/losses arising from changes in 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
Employee contribution
Benefits paid
Acquisitions credit/(cost)
Balance as at 31st March, 2020
Present value
of obligation
Fair value of
plan assets
₹ crore
Nil
44.89
(90.53)
5.81
760.31
760.31
22.02
Nil
56.34
78.36
Nil
(1.59)
(3.30)
13.84
8.95
Nil
49.34
(98.17)
8.97
807.76
₹ crore
19.74
44.89
(90.53)
5.81
752.04
752.04
Nil
Nil
57.21
57.21
(40.00)
Nil
Nil
Nil
(40.00)
21.13
49.34
(98.17)
8.97
750.52
Net
amount
₹ crore
(19.74)
Nil
Nil
Nil
8.27
8.27
22.02
Nil
(0.87)
21.15
40.00
(1.59)
(3.30)
13.84
48.95
(21.13)
Nil
Nil
Nil
57.24
Unfunded:
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 along with 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.
411
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
25. Provisions (Contd.)
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, 2020
6.25% to 6.84 % p.a
5% to 8% p.a.
2% to 8% p.a.
3% to 5% p.a.
Indian Assured Lives Mortality (2006-08)
(modified) Ult & 100% of Indian Assured
Lives Mortality (2012-2014)
8% p.a.
31st March, 2019
7.4% to 7.7 % p.a
5% to 8% p.a.
2.5% to 8% p.a.
3% to 5% 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:
(a) Funded Plan - Gratuity:
Balance as at 1st April, 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
Balance as at 31st March, 2019
Balance as at 31st March, 2019*
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
Less: Amount recognised in Other Comprehensive Income - Discontinued Operations
Amount recognised in Other Comprehensive Income
Employer contribution
Benefits paid
Acquisitions credit/(cost)
Add: Amounts recognised in current year - Discontinued Operations
Balance as at 31st March, 2020
* Net assets is classified as "Other Current Assets"
Present value
of obligation
₹ crore
Fair value of
plan assets
₹ crore
289.45
20.60
Nil
22.43
(0.58)
42.45
Nil
3.02
6.70
16.93
26.65
Nil
(34.64)
(1.40)
0.58
323.09
323.09
19.01
Nil
25.64
1.30
45.95
0.05
25.46
20.79
(0.82)
(0.21)
45.27
Nil
(59.93)
(0.39)
(1.08)
352.91
(299.65)
Nil
Nil
(27.34)
Nil
(27.34)
6.62
Nil
(2.26)
Nil
4.36
(2.64)
1.43
Nil
Nil
(323.84)
(323.84)
Nil
Nil
(24.10)
Nil
(24.10)
(8.25)
Nil
Nil
Nil
Nil
(8.25)
(6.63)
4.09
Nil
Nil
(358.73)
Net
amount
₹ crore
(10.20)
20.60
Nil
(4.91)
(0.58)
15.11
6.62
3.02
4.44
16.93
31.01
(2.64)
(33.21)
(1.40)
0.58
(0.75)
(0.75)
19.01
Nil
1.54
1.30
21.85
(8.20)
25.46
20.79
(0.82)
(0.21)
37.02
(6.63)
(55.84)
(0.39)
(1.08)
(5.82)
412
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
(b) Unfunded Plan - Gratuity and Other Defined Benefit Plans:
Balance as at 1st April, 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
Balance as at 31st March, 2019
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
Balance as at 31st March, 2020
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: Gratuity Assets classified as other assets
Gratuity provision (net)
Gratuity
Amount
₹ crore
19.95
2.14
Nil
Nil
1.53
Nil
3.67
0.23
0.92
(2.23)
Nil
(1.08)
(1.00)
1.04
Nil
Nil
22.58
22.58
2.72
Nil
Nil
1.60
Nil
4.32
(0.56)
2.33
3.64
Nil
5.41
(2.72)
0.56
Nil
30.15
Other Defined
Benefit Plans
Amount
₹ crore
104.50
5.61
0.79
4.58
8.91
(0.44)
19.45
Nil
3.41
(8.53)
0.24
(4.88)
(4.11)
0.02
0.44
(2.86)
112.56
112.56
6.87
0.25
13.52
10.44
0.07
31.15
(5.65)
10.90
(9.68)
0.41
(4.02)
(7.31)
(0.31)
(0.58)
131.49
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
(5.82)
30.15
24.33
51.79
7.99
35.45
24.33
6.54
22.58
29.12
39.64
1.66
34.76
6.54
413
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 25. Provisions (Contd.)
Provision for Other defined benefit obligation
Closing provision as per above note 2.1 and 2.3(b)
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
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
188.73
69.30
60.88
3.12
55.43
188.73
112.56
54.50
47.10
2.56
8.40
112.56
2.4
Sensitivity analysis
The sensitivity of the defined benefit obligations to changes in the weighted principal assumptions is:
Change in assumption
Increase in assumption
Decrease in assumption
Discount rate
Salary/Pension growth rate
Mortality rates
Healthcare cost
31st
March,
2020
0.50%
0.50%
1 year
0.50%
31st
March,
2019
0.50%
0.50%
1 year
0.50%
Decrease by
Increase by
Decrease by
Increase by
31st
March,
2020
24.15
19.97
5.84
5.17
31st
March,
2019
19.70
16.91
4.41
3.78
31st
March,
2020
26.54
18.56
5.74
4.60
31st
March,
2019
21.59
15.71
4.32
3.38
Increase by
Decrease by
Increase by
Decrease by
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.
These plans typically expose the Company to actuarial risks such as: Investment Risk, Interest Risk, Longevity Risk
and Salary Risk.
Investment Risk The present value of the defined benefit plan liability is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds.
Interest Risk
A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
an increase in the return on the plan debt investments.
Longevity Risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate
of the mortality of plan participants both during and after their employment. An increase in the life
expectancy of the plan participants will increase the plan’s liability.
Salary Risk
The present value of the defined plan liability is calculated by reference to the future salaries of plan
participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.
414
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
25. Provisions (Contd.)
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
31st March, 2020
₹ crore
31st March, 2019
₹ crore
106.05
155.63
145.32
134.28
136.92
723.06
97.40
139.33
145.50
139.49
135.61
793.98
The weighted average duration of the defined benefit obligation is approximately 7.4 years (31st March, 2019 - 8.1 years).
The contribution expected to be made by the Group during the financial year 2019-20 is ₹ 23.01 crore (31st March, 2019 -
₹ 2.01 crore).
2.6
Risk exposure:
Through its defined benefit plans, the Group is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility:
The plan liabilities are calculated using a discount rate set with reference to government bond yield. If plan assets
underperform this yield, it will result in deficit. These are subject to interest rate risk. To offset the risk, the plan assets have
been deployed in high grade insurer managed funds.
Inflation rate risk:
Higher than expected increase in salary 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
Others Cash & Cash Equivalents
Provident Fund
Gratuity
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
%
4%
26%
54%
16%
%
2%
37%
45%
16%
%
18%
47%
27%
9%
%
24%
24%
34%
18%
415
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 26. Other Liabilities
Non-current
Consumers' Benefit Account [Refer Note 37(e)]
Deferred Revenue - Service Line Contributions from Consumers
Advance from Customers
Deferred Rent Liability
Deferred Revenue Liability
Deferred Revenue Grant*
Total
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
16.97
1,321.37
0.11
45.43
683.43
17.21
38.91
1,217.12
0.21
44.73
555.70
17.08
2,084.52
1,873.75
* The Group has recognised an income of ₹ 0.89 crore (31st March, 2019 - ₹ 9.61 crore) on account of Deferred Grants during the year in the
statement of profit and loss account.
Current
Statutory Liabilities
Advance from Customers/Public Utilities
Advance from Consumers
Liabilities towards Consumers
Statutory Consumer Reserves [Refer Note 37(e)]
Deferred Revenue Liability
Other Liabilities
Total
27. Current Borrowings - At Amortised Cost
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
241.86
280.94
501.21
195.96
168.00
41.62
23.49
315.51
154.59
330.20
11.50
561.75
23.52
102.57
1,453.08
1,499.64
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
(i) Unsecured
From Debentures
(a) Redeemable Non-Convertible Debentures
370.00
Nil
From Banks
(b) Buyers' Line of Credit
(c) Bank Overdraft - repayable on demand
(d) Short-term Loans
From Others
(e) From Related Parties
(f ) From Other (Refer Note Below)
(g) Commercial Papers
carried forward ...........................
416
9.23
34.71
1,562.44
Nil
203.69
2,776.16
2,022.78
140.28
6,630.18
10,769.62
10,769.62
2,740.39
Nil
7,259.52
12,979.76
12,979.76
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
27. Current Borrowings - At Amortised Cost (Contd.)
bought forward ...........................
(ii) Secured
From Banks
(a) Buyers' Line of Credit
(b) Short-term Loans
(c) Bank Overdraft - repayable on demand
From Others
(d) From Others
Total
As at
31st March, 2020
₹ crore
10,769.62
As at
31st March, 2019
₹ crore
12,979.76
Nil
1,074.74
Nil
Nil
165.62
404.80
306.99
18.21
1,074.74
895.62
11,844.36
13,875.38
Note:
During the current year, the Group has entered into a Suppliers’ Credit Program (“Facility”) with a party whereby the Group would get
additional credit period over and above the original credit period granted by certain coal suppliers. Under this Facility, the party shall pay
the said coal suppliers on the original due date on behalf of the Group and grant an additional credit period to the Group. This Facility
is for USD 500 million and available for an initial period of 18 months. The Group has utilised USD 18.62 million of this facility as at 31st
March, 2020.
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.
28. 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) 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 recognised when the terms of variable
payment relate specifically to the Group's efforts to satisfy the performance obligation i.e. in the year of occurrence 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.
(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. The transaction price is adjusted for significant financing component, if any and the adjustment is
accounted as finance cost.
417
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
28. Revenue from Operations (Contd.)
(iii) 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 recognise revenue based on the Group's efforts 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.
(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)
Trading of power
In the arrangement's the Group is acting as an agent, the revenue is recognised 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. 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.
b. 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.
c. 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 contracts 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 recognised 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.
There is no significant judgement involved while evaluating the timing as to when customers obtain control of
promised goods and services.
(ix)
In the regulated operations of the Group where tariff recovered from consumers is determined on cost plus return
on equity, the Income tax cost is pass through cost and accordingly the Group recognises Deferred tax recoverable /
payable against any Deferred tax expense/ income. The same has now been included in 'Revenue from Operations'
in case of Generation and Transmission Divisions and 'Net Movement in Regulatory Deferral Balances' in case of
Distribution Division.
There is no significant judgement involved while evaluating the timing as to when customers obtain control of
promised goods and services.
418
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
28. Revenue from Operations (Contd.)
(a) Revenue from Power Supply and Transmission Charges
Add/(Less): Cash Discount
Add/(Less):
Add/(Less):
Income to be adjusted in future tariff determination (Net)
Income to be adjusted in future tariff determination (Net)
in respect of earlier years (Refer Note 18)
Add/(Less): Deferred Tax Recoverable/Payable (Refer Note 3.15)
(Less): Power Purchase Cost (where Group acts as an agent)
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
28,264.95
(69.40)
(665.32)
5.49
31.41
(2,182.90)
25,384.23
28,408.70
(165.19)
226.06
(182.31)
322.41
(2,366.89)
26,242.78
(b) Revenue from Power Supply - Assets Under Finance Lease
1,051.27
1,030.64
(c) Project/Operation Management Services
119.19
123.89
(d) Revenue from Sale of:
Solar Products
Electronic Products
(e) Income from Finance Lease
(f) Finance Income from Service Concession Agreement
(g) 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 & 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
Profit on sale of Current Investment - measured at FVTPL
Sale of Renewable Energy Certificates
1,418.28
44.37
1,462.65
91.55
38.71
10.81
220.37
404.58
0.41
3.25
89.08
15.22
93.09
10.00
78.21
6.25
0.95
1.85
4.34
50.36
988.77
1,214.69
49.23
1,263.92
87.26
39.98
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
3.68
49.11
1092.59
Total
29,136.37
29,881.06
Note:
Revenue from operations for the year ended 31st March, 2019 includes Regulatory Assets on Deferred Tax Liability expected to be recovered from
customers amounting to ₹ 272.00 crore recognised pursuant to extension of Power Purchase Agreement for its generating plants for five years
w.e.f 1st April, 2019.
419
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
28. Revenue from Operations (Contd.)
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
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
28,836.15
29,610.68
(67.40)
69.40
(45.57)
165.19
28,838.15
29,730.30
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 recognised 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, 2020, other than those
meeting the exclusion criteria mentioned above is ₹ 1,27,165.72 crore (31st March, 2019 - ₹ 1,39,285.74 crore). Out of this, the
group expects to recognise revenue of around 5.66% (31st March, 2019 - 5.37%) within the next one year and the remaining
thereafter.
420
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements 9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
l
a
t
o
T
t
n
e
m
g
e
S
r
e
t
n
I
t
n
e
m
g
e
S
r
e
t
n
I
e
r
o
f
e
B
(
)
n
o
i
t
a
n
m
i
i
l
E
l
a
t
o
T
s
r
e
m
o
t
s
u
C
h
t
i
w
s
t
c
a
r
t
n
o
C
s
r
e
m
o
t
s
u
C
h
t
i
w
m
o
r
f
e
u
n
e
v
e
R
n
a
h
t
r
e
h
t
O
s
t
c
a
r
t
n
o
C
m
o
r
f
e
u
n
e
v
e
R
'
s
p
u
o
r
G
e
h
t
h
t
i
w
e
u
n
e
v
e
r
d
e
t
a
g
e
r
g
g
a
s
i
d
e
h
t
f
o
n
o
i
t
a
i
l
i
c
n
o
c
e
r
e
h
t
s
e
d
u
l
c
n
i
o
s
l
a
l
e
b
a
t
e
h
T
.
s
e
c
i
v
r
e
s
r
o
t
c
u
d
o
r
p
f
o
e
r
u
t
a
n
d
n
a
e
p
y
t
y
b
d
e
t
a
g
e
r
g
g
a
s
i
d
s
i
e
u
n
e
v
e
R
)
.
d
t
n
o
C
(
s
n
o
i
t
a
r
e
p
O
m
o
r
f
e
u
n
e
v
e
R
.
8
2
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
.
7
0
5
1
4
0
1
,
.
1
9
1
4
3
9
,
.
4
6
0
3
0
1
,
.
7
2
1
5
0
1
,
5
4
1
7
.
.
6
3
4
1
2
7
8
7
4
.
7
6
1
1
.
.
3
7
5
1
3
0
7
6
8
.
2
3
0
1
.
4
0
0
.
8
7
3
2
.
8
6
5
4
.
.
7
3
0
2
2
8
8
0
7
.
0
0
0
1
.
1
2
8
7
.
1
9
8
8
.
9
4
5
.
5
0
0
.
8
9
6
3
.
l
i
N
6
8
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
3
9
1
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
8
0
1
.
9
9
0
.
1
3
5
7
.
.
6
3
4
1
2
7
8
7
4
.
7
6
1
1
.
.
3
7
5
1
3
0
7
6
8
.
2
3
0
1
.
4
0
0
.
6
8
4
2
.
1
6
7
4
.
.
7
3
0
2
2
8
8
0
7
.
0
0
0
1
.
1
2
8
7
.
1
9
8
8
.
9
4
5
.
5
0
0
.
7
9
7
3
.
.
4
6
0
3
0
1
,
.
7
2
1
5
0
1
,
.
9
5
2
1
4
3
,
.
7
0
0
8
5
3
,
.
6
6
7
2
8
3
1
,
.
8
9
1
2
9
2
1
,
.
3
6
7
2
2
2
1
,
.
5
7
9
4
9
0
1
,
.
3
5
7
1
4
3
,
.
9
9
2
8
5
3
,
.
6
1
5
4
6
5
1
,
.
4
7
2
3
5
4
1
,
8
8
6
2
.
9
0
9
2
.
.
1
5
5
1
0
2
,
.
1
4
3
7
1
2
,
.
9
6
4
1
2
1
,
.
8
2
8
1
4
1
,
7
1
2
.
3
1
6
4
.
6
9
9
3
.
6
5
0
.
2
0
0
.
2
8
2
.
9
8
3
.
3
3
7
2
.
9
9
1
.
5
3
9
4
.
2
6
8
3
.
4
6
2
.
2
0
0
.
0
5
2
.
5
2
6
.
9
6
9
1
.
.
6
9
9
7
3
3
,
.
4
8
1
4
7
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
9
0
.
.
4
4
9
2
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
9
7
0
.
9
7
6
.
.
3
0
8
2
2
.
3
4
0
3
2
.
1
6
5
3
2
7
8
7
2
.
8
8
9
2
.
.
5
9
4
4
2
2
,
.
4
4
1
0
4
2
,
.
9
6
4
1
2
1
,
.
7
0
5
2
4
1
,
7
1
2
.
3
1
6
4
.
6
9
9
3
.
6
5
0
.
2
0
0
.
2
8
2
.
9
8
3
.
3
3
7
2
.
9
9
1
.
5
3
9
4
.
2
6
8
3
.
4
6
2
.
2
0
0
.
0
5
2
.
5
2
6
.
9
6
9
1
.
.
9
3
0
1
6
3
,
.
5
4
7
7
9
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
l
i
N
l
i
N
l
i
N
l
i
N
0
7
6
8
.
2
3
0
1
.
4
0
0
.
6
8
4
2
.
.
2
9
1
2
1
9
4
5
.
5
0
0
.
1
9
8
8
.
7
9
7
3
.
.
2
4
2
3
1
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
6
5
0
.
2
0
0
.
2
8
2
.
9
8
3
.
3
3
7
2
.
2
6
4
3
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
4
6
2
.
2
0
0
.
0
5
2
.
5
2
6
.
9
6
9
1
.
0
1
1
3
.
.
4
6
0
3
0
1
,
.
6
6
7
2
8
3
1
,
.
7
2
1
5
0
1
,
.
8
9
1
2
9
2
1
,
1
3
5
7
.
.
6
3
4
1
2
7
8
7
4
.
7
6
1
1
.
.
3
7
5
1
3
l
i
N
l
i
N
l
i
N
l
i
N
1
6
7
4
.
.
7
3
0
2
2
.
8
8
0
7
.
0
0
0
1
.
1
2
8
7
l
i
N
l
i
N
l
i
N
l
i
N
.
c
t
e
.
4
2
3
2
5
5
1
,
.
2
3
0
0
4
4
1
,
s
e
c
i
v
r
e
S
t
n
e
m
e
g
a
n
a
M
n
o
i
t
a
r
e
p
O
/
t
c
e
o
r
P
j
e
s
a
e
L
r
e
d
n
U
s
t
e
s
s
A
m
o
r
f
r
e
w
o
P
f
o
e
a
S
l
d
e
r
e
d
n
e
R
s
e
c
i
v
r
e
S
f
o
t
c
e
p
s
e
r
n
i
e
m
o
c
n
I
e
r
i
H
r
e
t
r
a
h
C
i
e
s
a
e
L
e
c
n
a
n
F
m
o
r
f
e
m
o
c
n
I
h
s
A
y
l
F
f
o
e
a
S
l
l
a
o
C
f
o
e
a
S
l
n
o
i
t
a
r
e
n
e
G
r
e
w
o
P
f
o
e
a
S
l
s
e
c
i
v
r
e
S
/
s
d
o
o
G
f
o
e
r
u
t
a
N
.
t
n
e
m
g
e
s
e
b
a
t
r
o
p
e
r
l
s
r
a
l
u
c
i
t
r
a
P
i
,
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
,
s
g
n
d
i
l
i
u
B
,
d
n
a
L
f
o
l
a
t
n
e
R
i
s
n
o
i
t
u
b
i
r
t
n
o
C
e
n
L
e
c
i
v
r
e
S
f
o
n
o
i
t
a
s
i
t
r
o
m
A
s
t
i
d
e
r
C
y
r
d
n
u
S
d
n
a
e
u
n
e
v
e
R
s
u
o
e
n
a
l
l
e
c
s
i
M
)
A
(
l
a
t
o
T
.
5
9
4
4
2
2
,
.
4
4
1
0
4
2
,
s
e
l
b
a
w
e
n
e
R
r
e
w
o
P
f
o
e
a
S
l
7
8
7
2
.
.
8
8
9
2
s
e
c
i
v
r
e
S
t
n
e
m
e
g
a
n
a
M
n
o
i
t
a
r
e
p
O
/
t
c
e
o
r
P
j
.
9
6
4
1
2
1
,
.
7
0
5
2
4
1
,
7
1
2
.
3
1
6
4
.
6
9
9
3
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
9
9
1
.
.
5
3
9
4
.
2
6
8
3
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
7
7
5
7
5
3
,
.
5
3
6
4
9
3
,
t
n
e
m
e
e
r
g
A
n
o
i
s
s
e
c
n
o
C
e
c
i
v
r
e
S
m
o
r
f
e
m
o
c
n
I
e
c
n
a
n
F
i
i
e
s
a
e
L
e
c
n
a
n
F
m
o
r
f
e
m
o
c
n
I
d
e
r
e
d
n
e
R
s
e
c
i
v
r
e
S
f
o
t
c
e
p
s
e
r
n
i
e
m
o
c
n
I
s
e
t
a
c
fi
i
t
r
e
c
C
E
R
f
o
e
a
S
l
s
t
c
u
d
o
r
P
r
a
o
S
f
o
e
a
S
l
l
.
c
t
e
i
,
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
,
s
g
n
d
i
l
i
u
B
,
d
n
a
L
f
o
l
a
t
n
e
R
s
t
i
d
e
r
C
y
r
d
n
u
S
d
n
a
e
u
n
e
v
e
R
s
u
o
e
n
a
l
l
e
c
s
i
M
s
t
n
a
r
G
l
a
t
i
p
a
C
f
o
n
o
i
t
a
s
i
t
r
o
m
A
s
t
i
d
e
r
C
n
o
b
r
a
C
f
o
e
a
S
l
)
B
(
l
a
t
o
T
421
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
9
1
0
2
e
r
o
r
c
₹
0
2
0
2
e
r
o
r
c
₹
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
r
a
e
y
e
h
t
r
o
F
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
d
e
d
n
e
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
,
h
c
r
a
M
t
s
1
3
l
a
t
o
T
t
n
e
m
g
e
S
r
e
t
n
I
t
n
e
m
g
e
S
r
e
t
n
I
e
r
o
f
e
B
(
)
n
o
i
t
a
n
m
i
i
l
E
l
a
t
o
T
s
r
e
m
o
t
s
u
C
h
t
i
w
s
t
c
a
r
t
n
o
C
s
r
e
m
o
t
s
u
C
h
t
i
w
m
o
r
f
e
u
n
e
v
e
R
n
a
h
t
r
e
h
t
O
s
t
c
a
r
t
n
o
C
m
o
r
f
e
u
n
e
v
e
R
.
0
2
2
1
8
3
1
,
.
2
3
9
6
8
3
1
,
4
5
3
2
.
0
2
7
9
.
3
8
0
.
8
9
2
.
2
0
0
.
9
8
3
.
4
7
0
.
2
9
2
8
.
7
6
9
1
.
.
7
2
3
0
1
5
9
0
.
1
0
1
.
9
0
0
.
3
5
4
.
5
7
0
.
4
6
8
3
.
.
4
9
0
5
1
4
0
9
8
.
2
1
6
3
.
.
)
9
6
8
8
1
(
.
6
2
7
4
1
4
1
,
.
0
7
2
0
0
4
1
,
1
0
2
.
3
2
9
4
.
9
3
5
1
.
.
5
1
5
5
1
l
i
N
8
2
1
.
5
0
2
.
8
6
3
.
1
6
1
.
7
3
4
4
.
2
2
5
1
.
.
9
5
5
7
1
l
i
N
l
i
N
4
8
1
.
4
3
4
.
.
9
7
8
2
2
.
7
9
2
4
2
l
i
N
l
i
N
1
0
0
.
8
6
0
.
9
6
0
.
7
1
4
.
7
7
0
.
8
1
5
.
0
3
0
.
2
4
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
4
2
5
.
4
2
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
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
4
1
0
.
l
i
N
6
6
7
.
l
i
N
9
9
1
.
7
7
2
.
l
i
N
l
i
N
.
0
2
2
1
8
3
1
,
.
2
3
9
6
8
3
1
,
4
5
3
2
.
0
2
7
9
.
3
8
0
.
8
9
2
.
2
0
0
.
9
8
3
.
4
7
0
.
2
9
2
8
.
7
6
9
1
.
.
7
2
3
0
1
5
9
0
.
1
0
1
.
9
0
0
.
3
5
4
.
5
7
0
.
4
6
8
3
.
.
4
9
0
5
1
4
0
9
8
.
2
1
6
3
.
.
)
9
6
8
8
1
(
.
6
2
7
4
1
4
1
,
.
0
7
2
0
0
4
1
,
1
0
2
.
3
2
9
4
.
9
3
5
1
.
.
5
1
5
5
1
8
2
1
.
4
2
5
.
5
0
2
.
8
6
3
.
5
7
1
.
7
3
4
4
.
2
2
5
1
.
.
5
2
3
8
1
9
9
1
.
7
7
2
.
4
8
1
.
4
3
4
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
9
8
3
.
4
7
0
.
2
9
2
8
.
7
6
9
1
.
.
7
2
3
0
1
.
9
4
0
1
2
l
i
N
l
i
N
l
i
N
l
i
N
8
2
1
.
4
2
5
.
5
0
2
.
8
6
3
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
3
5
4
.
5
7
0
.
4
0
9
8
.
2
1
6
3
.
.
)
9
6
8
8
1
(
)
5
2
8
5
(
.
l
i
N
l
i
N
l
i
N
l
i
N
9
9
1
.
7
7
2
.
4
8
1
.
4
3
4
.
.
0
2
2
1
8
3
1
,
.
2
3
9
6
8
3
1
,
4
5
3
2
.
0
2
7
9
.
3
8
0
.
8
9
2
.
2
0
0
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
5
9
0
.
1
0
1
.
9
0
0
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
4
6
8
3
.
4
9
0
5
1
.
7
7
6
3
9
3
1
,
.
5
9
0
6
0
4
1
,
1
0
2
.
3
2
9
4
.
9
3
5
1
.
.
5
1
5
5
1
l
i
N
l
i
N
l
i
N
l
i
N
5
7
1
.
.
7
3
4
4
.
2
2
5
1
.
5
2
3
8
1
l
i
N
l
i
N
l
i
N
l
i
N
6
5
2
1
.
.
3
0
4
3
2
.
3
5
5
5
2
5
2
2
1
.
4
9
0
1
.
.
8
7
1
2
2
.
9
5
4
4
2
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
1
0
0
.
8
6
0
.
9
6
0
.
7
1
4
.
7
7
0
.
8
1
5
.
0
3
0
.
2
4
0
1
.
l
i
N
l
i
N
1
0
0
.
8
6
0
.
9
6
0
.
l
i
N
7
7
0
.
l
i
N
0
3
0
.
7
0
1
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
7
1
4
.
l
i
N
8
1
5
.
l
i
N
5
3
9
.
.
c
t
e
.
3
3
4
8
9
9
2
,
.
8
6
7
4
9
8
2
,
.
0
2
3
5
6
3
,
.
6
1
1
3
8
3
,
.
3
5
7
3
6
3
3
,
.
4
8
8
7
7
2
3
,
.
7
9
9
7
3
.
8
2
7
1
1
.
6
5
7
5
2
3
3
,
.
6
5
1
6
6
2
3
,
t
n
e
m
e
e
r
g
A
n
o
i
s
s
e
c
n
o
C
e
c
i
v
r
e
S
m
o
r
f
e
m
o
c
n
I
e
c
n
a
n
F
i
r
e
w
o
P
f
o
n
o
i
t
u
b
i
r
t
s
i
D
d
n
a
n
o
i
s
s
i
m
s
n
a
r
T
s
e
c
i
v
r
e
S
t
n
e
m
e
g
a
n
a
M
n
o
i
t
a
r
e
p
O
/
t
c
e
o
r
P
j
d
e
r
e
d
n
e
R
s
e
c
i
v
r
e
S
f
o
t
c
e
p
s
e
r
n
i
e
m
o
c
n
I
r
e
w
o
P
f
o
e
a
S
l
i
g
n
d
a
r
T
-
s
t
c
u
d
o
r
P
f
o
e
a
S
l
s
e
t
a
c
fi
i
t
r
e
c
C
E
R
f
o
e
a
S
l
s
r
a
l
u
c
i
t
r
a
P
.
c
t
e
.
c
t
e
i
,
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
,
s
g
n
d
i
l
i
u
B
,
d
n
a
L
f
o
l
a
t
n
e
R
s
e
c
n
a
a
B
l
l
a
r
r
e
f
e
D
y
r
o
t
a
u
g
e
R
n
l
i
t
n
e
m
e
v
o
m
t
e
N
i
s
n
o
i
t
u
b
i
r
t
n
o
C
e
n
L
e
c
i
v
r
e
S
f
o
n
o
i
t
a
s
i
t
r
o
m
A
s
t
i
d
e
r
C
y
r
d
n
u
S
d
n
a
e
u
n
e
v
e
R
s
u
o
e
n
a
l
l
e
c
s
i
M
s
t
n
a
r
G
l
a
t
i
p
a
C
f
o
n
o
i
t
a
s
i
t
r
o
m
A
s
e
c
i
v
r
e
S
t
n
e
m
e
g
a
n
a
M
n
o
i
t
a
r
e
p
O
/
t
c
e
o
r
P
j
)
C
(
l
a
t
o
T
s
r
e
h
t
O
d
e
r
e
d
n
e
R
s
e
c
i
v
r
e
S
f
o
t
c
e
p
s
e
r
n
i
e
m
o
c
n
I
g
n
i
l
l
i
a
n
m
r
e
T
&
e
g
a
r
o
t
S
m
o
r
f
e
m
o
c
n
I
s
t
c
u
d
o
r
P
c
i
n
o
r
t
c
e
E
f
o
e
a
S
l
l
i
,
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
,
s
g
n
d
i
l
i
u
B
,
d
n
a
L
f
o
l
a
t
n
e
R
s
t
i
s
o
p
e
D
e
t
a
r
o
p
r
o
c
-
r
e
t
n
I
n
o
t
s
e
r
e
t
n
I
I
C
O
T
V
F
t
a
d
e
r
u
s
a
e
m
s
t
n
e
m
t
s
e
v
n
I
y
t
i
u
q
E
m
o
r
f
d
n
e
d
v
D
i
i
L
P
T
V
F
t
a
d
e
r
u
s
a
e
m
-
t
n
e
m
t
s
e
v
n
I
t
n
e
r
r
u
C
f
o
e
a
s
n
o
t
fi
o
r
P
l
e
l
b
a
c
o
l
l
a
n
U
)
D
(
l
a
t
o
T
i
,
t
n
e
m
p
u
q
E
d
n
a
t
n
a
P
l
,
s
g
n
d
i
l
i
u
B
,
d
n
a
L
f
o
l
a
t
n
e
R
s
e
c
i
v
r
e
S
t
n
e
m
e
g
a
n
a
M
n
o
i
t
a
r
e
p
O
/
t
c
e
o
r
P
j
s
t
i
d
e
r
C
y
r
d
n
u
S
d
n
a
e
u
n
e
v
e
R
s
u
o
e
n
a
l
l
e
c
s
i
M
d
e
r
e
d
n
e
R
s
e
c
i
v
r
e
S
f
o
t
c
e
p
s
e
r
n
i
e
m
o
c
n
I
s
n
o
i
t
a
r
e
p
O
d
e
u
n
i
t
n
o
C
m
o
r
f
e
u
n
e
v
e
R
)
E
+
D
+
C
+
B
+
A
(
)
E
(
l
a
t
o
T
.
9
6
3
4
1
.
4
7
3
4
3
l
i
N
l
i
N
.
9
6
3
4
1
.
4
7
3
4
3
l
i
N
l
i
N
.
9
6
3
4
1
.
4
7
3
4
3
)
F
(
s
n
o
i
t
a
r
e
p
O
d
e
u
n
i
t
n
o
c
s
i
D
m
o
r
f
e
u
n
e
v
e
R
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
)
.
d
t
n
o
C
(
s
n
o
i
t
a
r
e
p
O
m
o
r
f
e
u
n
e
v
e
R
.
8
2
422
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
28. Revenue from Operations (Contd.)
Reconciliation of Revenue
Revenue from Continued Operations as per above
Net movement in Regulatory Deferral Balances
Total Revenue from Operations
Contract Balances
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 Consumers
Non-Current
Current
Liabilities towards Consumers
Non-Current
Current
Total Contract Liabilities
Receivables
Trade Receivables (Gross)
Non-Current
Current
Recoverable from Consumers
Current
Unbilled Revenue for passage of time
Non-Current
Current
(Less): Allowances for Doubtful Debts
Non-Current
Current
Net Receivables
Total
For the year ended
31st March, 2020
K crore
For the year ended
31st March, 2019
K crore
28,947.68
188.69
29,136.37
29,984.33
(103.27)
29,881.06
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
960.84
Nil
30.07
990.91
404.79
1,100.54
11.15
1,516.48
683.43
41.62
0.11
501.21
Nil
195.96
1,422.33
34.83
4,859.41
232.17
95.33
799.42
(4.55)
(433.51)
5,583.10
7,996.34
555.70
23.52
0.21
330.20
Nil
11.50
921.13
197.54
4,836.73
Nil
81.11
837.85
(4.55)
(391.47)
5,557.21
7,994.82
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer. Contract assets
are transferred to receivables when the rights become unconditional.
423
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
28. Revenue from Operations (Contd.)
Contract liability
A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration
(or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers
goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognised as revenue when the performance obligation is satisfied.
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
Particulars
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)
Deferred tax recoverable/(payable) on account of new tax regime
Revenue recognised during the year
Transfer to receivables
Others
Closing Balance
- Recoverable from consumers
- Liabilities towards consumers
As at
31st March, 2020
As at
31st March, 2019
₹ crore
₹ crore
1,505.33
(11.50)
1,493.83
(665.32)
5.49
48.87
31.41
(167.00)
573.67
(600.52)
44.45
(728.95)
960.84
(195.96)
764.88
1,310.63
(402.75)
907.88
226.06
(182.31)
288.71
322.50
Nil
679.60
(736.52)
(12.09)
585.95
1,505.33
(11.50)
1,493.83
(A)
(B)
(A+B)
Movement in Unbilled Revenue other than passage of time, Advance from consumers and Deferred Revenue
Liabilities
Particulars
Opening Balance
- Unbilled Revenue other than passage of time
- Advance from consumers
- Deferred Revenue Liabilities
Revenue recognised 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
424
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
11.15
330.41
579.22
920.78
(172.28)
486.41
75.03
(53.50)
335.66
30.07
501.32
725.05
1,256.44
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
(A)
(B)
(A+B)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements 29. Other Income
Accounting Policy
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.
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 customer. 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 regulatory authorities.
(a) Interest Income
(i) Financial Assets held at Amortised Cost
Interest on Banks 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) Interest on Income-Tax Refund
(b) Dividend Income
From Non-current Investments measured at FVTPL
(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
Discount amortised/accrued on Bonds (Net)
Commission earned
Gain/(Loss) on Disposal of Property, Plant and Equipment (Net)
Delayed Payment Charges
Other Income
Management Fees
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
18.11
Nil
66.41
12.64
7.53
0.63
15.01
120.33
17.71
138.04
85.75
85.75
42.26
11.13
53.39
0.03
8.76
(21.83)
49.45
113.92
135.10
285.43
13.87
0.12
3.16
16.70
20.40
1.24
13.59
69.08
7.18
76.26
5.42
5.42
44.36
0.88
45.24
Nil
9.83
(30.05)
87.48
Nil
191.97
259.23
Total
562.61
386.15
425
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
30. Raw Materials Consumed and Decrease/(Increase) in Work-in-Progress/Finished Goods/
Stock-in-Trade
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
Less: Inventory at the end of the year
Finished Goods
Inventory at the beginning of the year
Less: Inventory at the end of the year
Total
31. Employee Benefits Expense
Salaries and Wages
Contribution to Provident Fund [Refer Note 25(1)]
Contribution to Superannuation Fund [Refer Note 25(1)]
Gratuity [Refer Note 25 (2.3)]
Leave Encashment Scheme
Pension
Staff Welfare Expenses
Less:
Employee Cost Capitalised
Employee Cost Inventorised
Total
426
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
₹ crore
156.89
998.09
1,154.98
197.80
957.18
133.05
943.19
1,076.24
156.89
919.35
2.93
3.99
(1.06)
82.41
96.99
(14.58)
(15.64)
6.36
2.93
3.43
103.35
82.41
20.94
24.37
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
₹ crore
1,214.92
1,198.75
89.03
10.75
26.17
35.80
13.35
83.52
10.63
18.78
27.35
15.93
151.03
1,541.05
142.64
1,497.60
90.42
9.99
100.41
149.50
9.05
158.55
1,440.64
1,339.05
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements 32. 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:
On Borrowings - At Amortised Cost
Interest on Debentures
Interest on Loans - Banks and Financial Institutions
Interest paid to Joint Ventures
Others
Interest on Consumer Security Deposits (Carried at Amortised Cost)
Other Interest and Commitment Charges [Refer Note 37 (d)]
Interest on Lease Liability - At Amortised cost
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
Note:
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
₹ crore
1,076.67
2,786.76
52.42
81.84
57.08
308.73
Nil
4,363.50
42.50
4,321.00
1.54
181.57
(0.88)
(9.50)
172.73
906.77
2,658.33
73.60
72.56
125.78
Nil
35.46
3,872.50
47.35
3,825.15
(7.91)
151.96
221.84
(21.04)
344.85
4,493.73
4,170.00
The weighted average capitalisation rate on the Group's general borrowings is in the range of 7.74% to 8.63% p.a. (31st March, 2019 - 8.28%
to 8.63% p.a.).
427
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
33. Other Expenses
Consumption of Stores, Oil, etc.
Rental of Land, Buildings, Plant and Equipment, etc.
Repairs and Maintenance -
(i) To Buildings and Civil Works
(ii) To Machinery and Hydraulic Works
(iii) To Furniture, Vehicles, etc.
Rates and Taxes
Insurance
Other Operation Expenses
Ash Disposal Expenses
Warranty Charges
Travelling and Conveyance Expenses
Consultants' Fees
Compensation
Auditors' Remuneration
Cost of Services Procured
Agency Commission
Bad Debts
Allowance for Doubtful Debts and Advances (Net)
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
(Profit)/Loss on Sale of Non-current Investments in Joint Ventures accounted using Equity
method
Donations
Legal Charges
Corporate Social Responsibility Expenses
Transfer to Contingency Reserve
Marketing Expenses
Miscellaneous Expenses
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
150.04
25.57
115.55
653.28
69.54
838.37
108.47
96.88
366.01
53.58
10.45
51.39
38.42
(0.41)
12.87
279.94
1.84
23.62
16.80
Nil
116.21
Nil
Nil
0.77
NIl
52.92
34.32
17.00
3.11
44.61
2,342.78
₹ crore
88.90
113.81
119.41
512.95
73.22
705.58
91.58
65.76
381.06
47.81
15.14
56.09
54.00
2.36
11.34
239.30
Nil
2.09
72.54
0.06
140.81
(2.48)
1.18
Nil
20.00
54.51
39.46
16.00
1.80
41.45
2,260.15
34.
Income Taxes
34 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.
428
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
34.
Income Taxes (Contd.)
(i)
Income taxes recognised in Statement of Profit and Loss - Continuing Operations
Current Tax
Deferred Tax (Refer Note 12a. & 12b.)
Deferred Tax in respect of earlier years (Refer Note 12a. & 12b.)
Remeasurement of Deferred Tax on account of New Tax Regime (Net)
Total income tax expense recognised in the current year
31st March, 2020
₹ crore
31st March, 2019
₹ crore
494.30
330.95
(24.51)
(159.25)
641.49
524.66
544.02
18.91
Nil
1,087.59
(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
31st March, 2020
₹ crore
31st March, 2019
₹ crore
Nil
(32.41)
(32.41)
(71.92)
5.94
(65.98)
The income tax expense for the year can be reconciled to the accounting profit as follows:
Profit/(Loss) before tax for Continuing Operation
Profit/(Loss) before tax for Discontinued Operation
Profit/(Loss) before tax considered for tax working
Income tax expense calculated at 34.944%
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 / Reversal 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
Change in presentation of deferred tax recoverable/payable
Tax in respect of earlier years
Changes in tax on account of impact of tax ordinance (Refer Note 12)
Tax benefit on interest on perpetual securities recognised in equity
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
31st March, 2020
₹ crore
31st March, 2019
₹ crore
2,368.16
(442.64)
1,925.52
672.85
3,819.09
(191.82)
3,627.27
1,267.51
(332.86)
(489.86)
45.36
24.36
(92.82)
(126.92)
351.68
156.45
94.74
Nil
(24.51)
(159.25)
Nil
609.08
641.49
(32.41)
609.08
26.09
(0.59)
(72.75)
(16.84)
706.78
(291.81)
106.08
(171.79)
18.91
Nil
(60.12)
1,021.61
1,087.59
(65.98)
1,021.61
Note:
1 The tax rate used for the years 2019-20 and 2018-19 reconciliations above is the corporate tax rate of 34.944%, as payable by Parent Company in
India on taxable profits under the Indian tax law.
2 The rate used for calculation of Deferred tax has been considered basis the Standalone Ind AS financials statements of Parent Company and its
respective subsidiaries, being statutory enacted rates at Balance Sheet date.
429
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
34.
Income Taxes (Contd.)
(iii)
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
Effective portion of cash flow hedge
31st March, 2020
₹ crore
31st March, 2019
₹ crore
Nil
(13.22)
(13.22)
Nil
Nil
(13.73)
32.43
18.70
1.14
(7.95)
(6.81)
(0.40)
0.02
0.04
Nil
0.06
Total income tax recognised in Other Comprehensive Income
5.48
(7.15)
Bifurcation of the income tax recognised in other comprehensive income into:
Items that will not be reclassified to Statement of Profit and Loss
Items that will be reclassified to Statement of Profit and Loss
35. Commitments:
(a) Estimated amount of Contracts remaining to be executed on capital account and not
provided for (including consumer funded assets).
(i)
the Group
(ii) Group's share of Joint Ventures
(iii) Group's share of Associates
(b) Other Commitments
(26.95)
32.43
5.48
(7.15)
Nil
(7.15)
31st March, 2020
₹ crore
31st March, 2019
₹ crore
1,995.12
218.46
45.32
1,098.27
214.49
18.04
(i) 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.
(ii) Vendor purchase commitments and contracts to provide future post sale services.
Nil
1,273.20
137.50
494.50
(iii) In terms of pre-implementation agreement entered into with Government of Himachal Pradesh and the consortium consisting
of the Group and SN Power Holding Singapore Pte. Ltd. (Group being the Lead Member of the consortium) for the investigation
and implementation of Dugar Hydro Electric Project, the Group has undertaken as Lead Member to undertake/perform various
obligations pertaining to Dugar Project.
430
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements 36. Contingent Liabilities
a) Contingent liabilities
31st March, 2020
31st March, 2019
₹ crore
₹ crore
Claims against the Group not probable and hence not acknowledged as debts
consists of
(i)
(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
(ii)
Interest and penalty pertaining to Customs Duty claims disputed by the Group
relating to applicability and classification of coal
(iii)
Demand disputed by the Group relating to Service tax
(iv) Way Leave fees (including interest) claims disputed by the Group relating to
rates charged.
(v)
(vi)
(vii)
(viii)
(ix)
(x)
Rates, Cess, Green Cess, Excise and Custom Duty claims disputed by the Group.
Octroi claims disputed by the Group, in respect of octroi exemption claimed.
Compensation disputed by private land owners in respect of private land
acquired under the provisions of Maharashtra Industrial Development Act,
1961.
Disputes relating to power purchase agreements
Other Claims
Demand towards charges for Unscheduled interchanged (UI) of power
(Refer Note d below)
(xi)
Access Charges demand for laying underground cables
Claims against the Group's share of Joint Ventures and Group's share of
Associates not acknowledged as debts consists of
Group's share of Joint Ventures
(i)
Demand for royalty payment is set-off against recoverable Value Added Tax
(VAT) paid on inputs for coal production.
(ii)
Other claims
Group's share of Associates
Other claims
Notes:
269.00
359.85
110.81
375.29
43.18
587.05
5.03
22.00
161.33
160.19
Nil
30.14
269.00
261.00
110.81
402.45
39.18
523.49
5.03
22.00
199.23
173.75
215.02
Nil
51.70
37.00
29.24
40.79
232.62
237.67
2,445.19
2,528.66
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.
431
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
36. Contingent Liabilities (Contd.)
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 ₹ 9.19 crore (31st March, 2019 - ₹ 9.09 crore)].
Group's share of Joint Ventures
Group's share of Associates
c)
Indirect exposures of the Group:
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
31st March, 2020
₹ crore
31st March, 2019
₹ crore
188.73
114.30
2.50
640.03
84.17
2.50
31st March, 2020
Nos.
31st March, 2019
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
d) In the previous year, Maharashtra State Electricity Distribution Company Limited (MSEDCL) had raised a demand of
₹ 215.02 crore for determination of fixed charges for unscheduled interchange of power. Group had filed a petition
against the said demand. During the year, MERC has turned down methodology adopted by MSEDCL for determination
of such charges and ordered MSEDCL to submit certain details to Maharashtra State Load Dispatch Centre (MSLDC) to
determine the revised charges based on principles suggested in the Order. Considering the same, currently, the amount
of charges payable is not ascertainable and hence, no provision has been recognized during the year. Further, in case of
unfavourable outcome, the Group believes that it will be allowed to recover the same from consumers through future
adjustment in tariff.
e) The proposed Social Security Code, 2019, when promulgated, would subsume labour laws including Employees'
Provident Funds and Miscellaneous Provisions Act and amend the definition of wages on which the organisation and
its employees are to contribute towards Provident Fund. The Group believes that there will be no significant impact on
its contributions to Provident Fund due to the proposed amendments. There were many interpretative issues relating
to the Supreme Court (SC) judgement dated 28th February, 2019 on Provident Fund (PF) as regards definition of PF
wages and inclusion of certain allowances for the purpose of PF contribution, as well as effective date of its applicability.
Having consulted and evaluated impact on its financial statement, the Group has implemented the changes as per
clarifications vide the Apex Court judgement dated 28 February 2019, with effect from 1st March 2019 i.e., immediate
after pronouncement of the judgement, as part of statutory compliance. The Group will evaluate its position and act, in
case there is any other interpretation of the same issued in future either in form of Social Security Code or by authorities
concerned under the Employees' Provident Funds and Miscellaneous Provisions Act.
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.
432
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
37. Other Disputes and Settlements
a) The Group is required to comply with ash disposal requirements in accordance with the requirements of the Environment
Clearance (EC) and the relevant notifications issued by the Ministry of Environment & Forests (MOEF) from time to time.
On 12th February, 2020, National Green Tribunal (NGT) has passed an order prescribing the formula for determination
of Environment Compensation for non-compliance. The order is subject to proceedings pending before the Hon’ble
Supreme Court and is listed for further hearing in NGT on 8th July, 2020. The Group has been making concerted efforts in
this regard and has achieved 100% utilisation of fly ash generated during the current year. During the year, pending the
final order in National Green Tribunal and the results of the proceedings in Supreme Court, the Group has recognised a
provision of ₹ 4.74 crore in its financial statements for disposal of past accumulated flyash based on management’s best
assessment of the expected costs.
b) The Group had obtained 21.65 acres of land through registered lease deed for 33 years for setting up a solar power
plant in Bihar. During the financial year 2018-19, the lease was treated by the Collector, Gaya as illegal for entering into
lease without order of any competent authority, and was cancelled along with recovery of penal rent. The Group filed
Writ Petition before the Patna High Court against the said Order. The Patna High Court stayed the operations of the
Collectors Order and provided certain time to file the counter affidavit.
The Group is of the view that it has a good case with likelihood of liability or any loss arising out of the said cancellation
being remote. Accordingly, pending settlement of the legal dispute, no adjustment has been made in the financial
statements for the year ended 31st March, 2020.
c) The liability stated in the opening Balance Sheet of one of the subsidiary company as per the Transfer Scheme as on
1st July, 2002 in respect of consumers’ security deposit was ₹ 10.00 crore. The subsidiary company had engaged an
independent agency to validate the sample data in digitized form of consumer security deposit received by the erstwhile
DVB from its consumers. As per the validation report submitted by this agency the amount of security deposit received
from consumers aggregated to ₹ 66.71 crore. The subsidiary company has been advised that as per the Transfer Scheme,
the liability in excess of ₹ 10.00 crore towards refund of the opening consumer deposits and interest thereon is not to
the account of the Group. Since the GNCTD was of the view that the aforesaid liability is that of the Group, the matter
was referred to Delhi Electricity Regulatory Commission (DERC). During the year 2007-08, DERC vide its letter dated
23rd April, 2007 conveyed its decision to the GNCTD upholding the Group’s view. As GNCTD has refused to accept the
DERC decision as binding on it, the subsidiary company has filed a writ petition in the Hon’ble Delhi High Court and the
matter was made regular on 24th October, 2011. No stay has been granted by the High Court in the matter for refund of
consumer security deposits and payment of interest thereon.
d) In the earlier years, the Group had received demands in respect of entry tax on imports of fuel for Trombay plant. During
the year ended 31st March, 2019, the Group had recognised provision of ₹ 345.00 crore (including interest and provision
for contingency of ₹ 78.00 crore and ₹ 45.00 crore respectvely) towards settlement of entry tax demands under the
Amnesty scheme notified by the Government of Maharastra. Further during the year, the Group has received final
settlement order under the said scheme and pursuant to the said order, the Group has reversed the excess provision
related to entry tax under the head ‘Cost of Fuel’ and corresponding recovery from customers under the head ‘Revenue
from Operations' amounting to ₹ 68.78 crore.
e) With respect to Standby litigation with Adani Electricity Mumbai Limited (Adani Electricity), the Hon'ble Supreme Court
during the year ended 31st March, 2020 has upheld Appellat Tribunal for Electricity (APTEL) order dated 20th December,
2006 directing the Group to pay ₹ 354.00 crore along with interest at 10% p.a. from 1st April, 2004 upto the date of
payment. In the past, in accordance with the Hon'ble Supreme Court directives the Group has deposited ₹ 227.00 crore
with the Registrar General of the Court which was withdrawn by Adani Electricity on furnishing the required undertaking
to the Court. Consequently, the Group has recognized an expense of ₹ 276.35 crore net of amount recoverable from
customers including adjustment with consumer reserves and security deposit.
f) The Group have acquired private land for setting up solar power plants. In certain cases, these acquisitions have been
challenged on grounds such as unauthorised encroachment, inadequate compensation, seller not entitled to transact
and/or consideration has not been paid to all legal/ beneficial owners. In these cases, the Group has not received any
demand for additional payment and these cases are pending at District Court/High Court Level. The Management
believes that the Group has a strong case and outflow of economic resources is not probable.
433
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
37. Other Disputes and Settlements (Contd.)
g) One of the subsidiary company had introduced a Voluntary Separation Scheme (VSS) for its employees in December
2003, in response to which initially 1,798 employees were separated. The early retirement of these employees led to a
dispute between the subsidiary company and the DVB Employees Terminal Benefit Fund, 2002 (‘the Trust’) with respect
to payout of retirement benefits that these employees were eligible for. The Trust is of the view that its liability to pay
retiral benefits arises only on the employee attaining the age of superannuation or on death, whichever is earlier.
The subsidiary company filed a writ petition with the Hon’ble Delhi High Court which pronounced its judgement on
2nd July, 2007 on this issue and provided two options to the Discoms for paying retiral benefits to the Trust.
The subsidiary company chose the option whereby the Discoms were required to pay to the Trust an ‘Additional
Contribution’ on account of premature payout by the Trust which shall be computed by an Arbitral Tribunal of Actuaries to
be appointed within a stipulated period. The matter was further challenged by the Trust before Hon’ble Supreme Court,
however, no interim relief has been granted by the Hon’ble Supreme Court. Till date no Arbitral Tribunal of Actuaries
has been appointed and therefore, no liability has been recorded based on option chosen by the subsidiary company.
While the above referred writ petition was pending, the subsidiary company had already advanced ₹ 77.74 crore to the
Special Voluntary Retirement Scheme Retirees Terminal Benefit Fund, 2004 Trust (SVRS Trust) for payment of retiral dues
to separated employees. In addition to the payment of retiral benefits/residual pension to the SVRS Trust, in pursuant
to the order of the Hon’ble Delhi High Court dated 2nd July, 2007 the subsidiary company also paid interest @ 8% per
annum, ₹ 8.01 crore in the financial year 2008-09 thereby increasing the total contribution to the SVRS Trust to ₹ 85.76
crore recognised as recoverable from SVRS Trust. As the subsidiary company was entitled to get reimbursement against
advanced retiral benefit amount on superannuation age, the subsidiary company had recovered/adjusted ₹ 84.88 crore
as at 31st March, 2020 (as at 31st March, 2019 ₹ 84.73 crore), leaving a balance recoverable ₹ 0.88 crore as at 31st March,
2020 (as at 31st March, 2019 ₹ 1.03 crore) from the SVRS Trust which includes current portion of ₹ 0.33 crore (as at 31st
March, 2019 ₹ 0.13 crore).
38. 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.
Particulars
31st March, 2020
₹ crore#
31st March, 2019
₹ crore#*
A. EPS - Continuing operations (before net movement in Regulatory
Deferral Balances)
Total Profit from Continuing Operations attributable to the owners of the Parent
Company
Add/(Less):(Profit)/Loss for the Year from Discontinued Operations attributable
to the owners of the Parent Company
Net Profit from Continuing Operations
Net movement in Regulatory Deferral Balances
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime
(Net) (Refer Note 12)
Income-tax attributable to Regulatory Deferral Balances
A
B
C
D
1,017.38
2,356.19
410.23
1,427.61
(188.69)
(98.00)
100.19
125.84
2,482.03
103.27
Nil
(36.09)
434
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
38. Earnings Per Share (EPS) (Contd.)
Particulars
Net movement in Regulatory Deferral Balances (Net of tax)
Net Profit (before net movement in Regulatory Deferral Balances)
(Less): Distribution on Perpetual Securities
Profit/(Loss) 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 ₹)
31st March, 2020
₹ crore#
31st March, 2019
₹ crore#*
E=(B+C+D)
F=(A-E)
G
(186.50)
1,614.11
(171.00)
67.18
2,414.85
(171.00)
H=(F+G)
1443.11
2,243.85
270,76,05,570
270,76,05,570
B. EPS - Continuing Operations (after net movement in Regulatory Deferral Balances)
Net Profit from Continuing Operations
(Less): Distribution on Perpetual Securities
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 ₹)
C. EPS - Discontinued Operations
Profit/(Loss) from Discontinued Operations
Weighted average number of equity shares for Basic and Diluted EPS
EPS - Discontinued Operations
- Basic and Diluted (In ₹)
D. EPS - Total Operations (after net movement in Regulatory Deferral
Balances)
Net Profit/(Loss) From Total Operations (after net movement in Regulatory
Deferral Balances)
Less: Distribution on Perpetual Securities
Net Profit/(Loss) 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 ₹)
5.33
8.29
1,427.61
(171.00)
2,482.03
(171.00)
1,256.61
2,311.03
270,76,05,570
270,76,05,570
4.64
8.54
(410.23)
(125.84)
270,76,05,570
270,76,05,570
(1.52)
(0.46)
1,017.38
(171.00)
2,356.19
(171.00)
846.38
2,185.19
270,76,05,570
270,76,05,570
3.12
8.08
# All numbers are in ₹ crore except weighted average number of equity shares and Basic and Diluted EPS
* Restated (Refer Note 44)
435
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
39. Related Party Disclosures:
The Group’s related parties primarily consists of its associates, joint ventures and Tata Sons Pvt. Ltd. including its subsidiaries
and joint ventures. The Group routinely enters into transactions with these related parties in the ordinary course of business
at market rates and terms. Transactions and balances between the Company, its subsidiaries and fellow subsidiaries are
eliminated on consolidation.
Disclosure as required by Ind AS 24 - “Related Party Disclosures” are as follows:
Names of the related parties and description of relationship:
(a)
Related parties where control exists:
Employment Benefit Funds
1) Tata Power Superannuation Fund
2) Tata Power Gratuity Fund
3) Tata Power Consolidated Provident Fund
4) M/s Maithon Power Gratuity Fund (Fund)
5) North Delhi Power Ltd. Employees Group Gratuity Assurance Scheme (Gratuity Fund)
6) 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) Associates
1)
Tata Projects Ltd.
3) Dagacchu Hydro Power Corporation Ltd.
5)
Brihat Trading Private Ltd.
2)
4)
6)
Yashmun Engineers Ltd.
The Associated Building Co. Ltd.
Tata Communication Ltd. (ceased to be an
Associate w.e.f. 28th May, 2018)
7)
Panatone Finvest Ltd (Ceased to be an
Associate w.e.f. 28th May, 2018)
8) Nelito Systems Ltd (ceased to be an Associate w.e.f.
6th June, 2019)
(ii) Joint Venture Companies
1)
3)
Tubed Coal Mines Limited
Industrial Energy Limited
5) Dugar Hydro Power Limited
PT Mitratama Perkasa
7)
9)
2) Mandakini Coal Company Ltd.
4)
6)
8)
Powerlinks Transmission Limited
Itezhi Tezhi Power Corporation Limited
PT Kaltim Prima Coal
IndoCoal Resources (Cayman) Limited
10) PT Indocoal Kaltim Resources
11) PT Nusa Tambang Pratama
13) PT Dwikarya Prima Abadi
15) PT Baramulti Sukessarana Tbk
17) Koromkheti Netherlands B.V
12) PT Marvel Capital Indonesia
14) PT Kalimantan Prima Power
16) Adjaristsqali Netherlands B.V
18)
IndoCoal KPC Resources (Cayman) Limited
19) Resurgent Power Ventures Pte Ltd.
20) Renascent Power Ventures Private Ltd.
21) Prayagraj Power Generation Co Ltd.
22) PT Arutmin Indonesia
(w.e.f. 12th December, 2019)
23) PT Indocoal Kalsel Resources
25) LTH Milcom Pvt. Ltd.
27) PT Mitratama Usaha
29) PT Guruh Agung
31) Koromkheti Georgia LLC
33) PT Antang Gunung Meratus
436
24) Candice Investments Pte. Ltd.
26) Solace Land Holding Ltd
28) PT Citra Prima Power
30) PT Citra Kusuma Perdana
32) Adjaristsqali Georgia LLC
34) Cennergi Pty. Ltd. (Ceased to be Joint Venture w.e.f.
31st March, 2020)
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
39. Related Party Disclosures: (Contd.)
(c)
(i) Promoters holding more than 20% - Promoter
Tata Sons Pvt. Ltd.
(ii) Subsidiaries and Jointly Controlled Entities of Promoters - Promoter Group (where transactions have taken
place during the year and previous year / balances outstanding) :
1)
Tata Business Support Services Ltd.
2)
Ewart Investments Ltd.
Tata AG, Zug
Tata AIG General Insurance Company Ltd.
Tata Capital Ltd.
3)
5)
7)
9)
11) Tata Consultancy Services Ltd.
13) Tata Consulting Engineers Ltd.
15) Tata Housing Development Company Ltd.
17) Tata Industries Ltd. (ceased to be Subsidiary and became a
Joint Venture w.e.f. 27th March, 2019)
19) Tata Interactive Systems AG
21) Tata Investment Corporation Ltd.
23) Tata Realty and Infrastructure Ltd.
25) Tata Teleservices (Maharashtra) Ltd.
27) Tata Teleservices Ltd.
29) TC Travel and Services Ltd.
31) THDC Management Services Ltd. (formerly THDC Facility
Management Ltd.)
33) Tata Cleantech Capital Ltd.
35) Tata Sky Ltd.
37) Tata Capital Financial Services Ltd.
39) Tata International Ltd.
41) Tata Capital Forex Ltd. (formerly TT Holdings & Services Ltd.)
43) Tata Asset Management Ltd.
45)
Infiniti Retail Ltd.
47) Tata SIA Airlines Limited
(d)
Key Management Personnel
Tata Advanced Material Ltd (ceased to be
Subsidiary w.e.f. 27th March, 2019)
TRIL Infopark Ltd.
4)
6) World-One Development Company Pvt. Ltd.
8)
J R D Tata Trust
10) Sir Dorabji Tata Trust
12) Sir Ratan Tata Trust
14) Niskalp Infrastructure Services Ltd.
(Formerly Niskalp Energy Ltd.)
16) Taj Air Ltd.
18) Tata Unistore Ltd. (Formerly Tata Industrial Services
Ltd.) (ceased to be an Associate and became a
Subsidiary w.e.f. 29th March,2018)
20) Ecofirst Services Ltd.
22) Progressive Electoral Trust
24) Tata Ltd.
26) Tata Communications Ltd. (ceased to be an
Associate and became a Subsidiary w.e.f. 28th May,2018)
28) Tata Housing Development Co. Ltd..
Employees Provident Fund
30) Tata Consultancy Services Employees Provident Fund
32) Tata Technologies (India) Ltd.
Employees Provident Fund
34) Tata Projects Provident Fund Trust
36) STT Global Data Centres India Private Ltd.
(Formerly Tata Communications Data Centers Private
Ltd.) (w.e.f. 28th May,2018)
38) Tata AIA Life Insurance Company Ltd.
40) Tata Advanced System Ltd.
42) Tata Communications Payment Solutions Ltd. (w.e.f.
28th May, 2018)
44) Tata International Singapore Pte. Ltd.
46) Panatone Finvest Ltd.
48) Tata Autocomp Systems Limited
1)
Praveer Sinha CEO and Managing Director
(w.e.f. 1st May, 2018)
2) N. Chandrasekaran
3) Ashok Sethi (ceased to be COO & Executive Director
4)
Pravin H. Kutumbe
w.e.f. 30th April, 2019)
5)
Ramesh N. Subramanyam - Chief Financial Officer
6)
Banmali Agarwala
7) Hanoz Minoo Mistry - Company Secretary
9) Anjali Bansal
Kesava Menon Chandrasekhar
8)
10) Hemant Bhargava
437
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
39. Related Party Disclosures: (Contd.)
11) Nawshir H. Mirza (ceased to be Director w.e.f.
12) Vibha U. Padalkar
12th August, 2019)
13) Deepak M. Satwalekar (ceased to be Director w.e.f.
14) Sanjay V. Bhandarkar
12th August, 2019)
15) Saurabh Agrawal
17) Anil Sardana - CEO and Managing Director (ceased to be
Director w.e.f. 30th April, 2018)
16) Ashok Sinha (w.e.f. 2nd May, 2019)
(e)
f)
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)
Details of Transactions
Particulars
Associates
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Funds
Promoter
Group
Sr.
No.
1
2
3
4
5
6
7
8
9
Purchase of goods/power (Net of Discount)
Sale of goods/power (Net of Discount)
Purchase of property, plant & equipments
Sale of property, plant & equipments
Rendering of services
Receiving of services
Brand equity contribution
Contribution to Employee Benefit Plans
Remuneration paid- short term employee benefits
10 Long term employee benefits paid
11 Short term employee benefits paid
12 Interest income
13 Interest paid
14 Dividend received
15 Dividend paid
16 Guarantee commission earned
17 Loans given
438
155.19
2,954.11
125.88
2,935.59
17.55
0.15
12.84
9.69
0.05
0.08
7.25
0.16
22.22
10.94
-
-
-
-
-
-
175.69
206.88
0.83
0.08
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.63
1.24
52.29
73.75
9.68
1,861.27
9.74
210.79
-
-
-
-
-
1.00
-
-
-
1.18
14.57
7.05
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10.92 *
23.91 *
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
39.01
48.10
-
-
2.80 #
1.15 #
0.68 #
0.55 #
-
-
-
-
-
-
-
-
-
-
-
-
8.36
0.02
54.18
72.93
0.22
3.02
-
0.05
45.81
237.45
92.37
86.49
0.07
-
-
-
-
-
-
-
-
-
0.01
0.01
35.23
26.70
1.94
1.97
1.77
1.77
-
-
-
-
₹ crore
Promoters
-
-
-
-
-
-
0.22
-
1.32
1.09
5.96
0.43
1.76
11.96
-
-
-
-
-
-
-
-
-
-
-
-
6.67
5.34
109.17
109.17
-
-
-
-
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements 39. Related Party Disclosures: (Contd.) ₹ crore
Associates
Promoters
Particulars
Joint
Ventures
Key
Management
Personnel
Employee
Benefit
Funds
Promoter
Group
Sr.
No.
18 Impairment of Investments- Reversal
19 Sale of Investments
20 Loans repaid (including loan converted into equity)
21
Loans provided for as doubtful advances (including
interest)
22 Deposits taken
23 Deposits refunded
24 Loan taken
25 Loan adjusted against liability
26 Liability written back
27 Donation given
Balances outstanding
1
Perpetual Securities Outstanding (including interest
thereon)
2
Redeemable Non-Convertible Debentures
3 Other receivables
4
Loans given (including interest thereon)
5
Loans provided for as doubtful advances (including
interest thereon)
6 Deposits taken outstanding
7 Dividend receivable
8
Letter of comfort outstanding
9 Other payables
10 Loans taken (including interest thereon)
11 Brand Equity Payable
-
2.48
-
-
-
1.00
-
-
-
0.01
-
-
-
-
-
-
-
-
-
-
-
-
7.65
1.26
1.27
1.27
1.27
1.27
-
-
-
-
-
-
10.89
7.70
-
-
-
-
-
-
-
-
14.43
116.83
0.14
-
-
50.00
-
50.00
-
665.77
-
830.34
-
-
-
-
-
-
-
-
96.44 @
165.60 @
75.62 @
75.26 @
54.39
54.26
12.80
-
-
16.71
0.05
0.05
2071.63
1,428.15
2,203.86
2,873.82
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2.03
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
8.05
12.93
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
36.32
21.49
0.01
-
-
-
-
-
-
-
-
-
43.63
13.56
-
-
-
-
-
-
-
619.46
-
-
-
-
-
1,542.61
-
-
-
-
0.19
0.41
-
1.55
-
-
-
-
-
-
-
20.00
198.20
199.00
36.50
36.50
17.15
12.38
-
-
-
-
0.21
0.02
-
-
-
-
17.80
2.93
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
0.64
-
-
-
-
-
-
7.66
0.08
-
-
-
-
2.00
2.00
-
-
-
-
0.17
31.11
-
-
0.70
-
439
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 39. Related Party Disclosures: (Contd.)
Notes:
1. All outstanding balances are unsecured.
2. All transactions with the related parties have been done at arms length.
3. The Group's principal related parties consist of Tata Sons Private Ltd., 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.
# 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 included above on payment basis.
40. Financial Instruments
40.1
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 (Refer Note 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)
Lease Liability
Derivative Instruments not in hedging relationship
Other Financial Liabilities
# other than investments accounted for Equity Method
Carrying value
Fair Value
31st March, 2020 31st March, 2019 31st March, 2020 31st March, 2019
₹ crore
1,861.50
232.68
4,456.18
799.42
113.88
622.12
702.53
461.79
167.87
301.64
1,689.58
667.35
22.81
22.83
645.45
142.00
4,638.25
837.85
177.74
603.52
126.32
485.67
416.40
24.76
533.58
265.62
38.65
18.59
1,861.50
232.68
4,456.18
799.42
113.88
622.12
702.53
461.79
176.79
301.64
1,689.58
667.35
22.81
22.83
645.45
142.00
4,638.25
837.85
177.74
603.52
126.32
485.67
423.27
24.76
533.58
265.62
38.65
18.59
12,122.18
8,954.40
12,131.10
8,961.27
5,095.44
18,891.49
29,484.45
3,560.22
64.03
4,323.96
5,504.24
16,115.06
32,390.98
Nil
113.35
3,563.32
5,095.44
20,116.49
29,492.81
3,560.22
64.03
4,323.96
5,504.24
16,149.65
32,390.98
Nil
113.35
3,563.32
61,419.59
57,686.95
62,652.95
57,721.54
440
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
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 FVTOCI financial assets are derived from quoted market price in active markets and unobservable
inputs.
- 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, 2020, 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.
- 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)
Opening balance
Total Gain or (Loss)
Closing balance
Unlisted shares
irrevocably designated as at
FVTOCI
₹ crore
Unlisted shares
carried at FVTPL
Year ended
31st March,
2020
Year ended
31st March,
2019
Year ended
31st March,
2020
Year ended
31st March,
2019
397.71
Nil
397.71
397.08
0.63
397.71
0.16
Nil
0.16
0.15
0.01
0.16
Note:
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, 2020 and 31st March, 2019 are as shown below:
441
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
40. Financial Instruments (Contd.)
Description of significant unobservable inputs to valuation:
Valuation
techniques
Investments in unquoted
equity shares
Price of recent
transaction (PORT)
Significant
unobservable inputs
Transaction price
Sensitivity of the input to fair value
5% (31st March, 2019: 5%) increase (decrease) in the
transaction price would result in increase (decrease) in
fair value by ₹ 3.43 crore (31st March, 2019: ₹ 3.43 crore)
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.
40.2 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:
Quoted prices in an active market (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 rate) and mutual
funds that have quoted price.
Valuation techniques with observable inputs (Level 2): Inputs are other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This includes
derivative financial instruments and unquoted borrowings (fixed and floating rate).
Valuation techniques with significant unobservable inputs (Level 3): Inputs are not based on observable market data
(unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument nor are they based on
available market data. This includes unquoted equity shares.
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) :
Date of valuation
Fair value hierarchy as at 31st March, 2020
Quoted prices
in active
markets
(Level 1)
Significant
observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Total
₹ crore
₹ crore
₹ crore
₹ crore
Asset measured at fair value
FVTPL Financial Investments
FVTOCI Financial Investments:
- Quoted Equity Shares
- Unquoted Equity Shares
Derivative instruments not in hedging relationship
31st March, 2020
Assets Classified as Held For Sale
Asset for which fair values are disclosed
Investment in Government Securities
31st March, 2020
31st March, 2020
31st March, 2020
702.37
31st March, 2020
31st March, 2020
Nil
Nil
Nil
301.64
Nil
Nil
0.16
702.53
Nil
397.71
Nil
Nil
64.08
397.71
301.64
22.81
Nil
176.79
301.64
397.87
1,665.56
64.08
Nil
Nil
22.81
176.79
966.05
Liabilities measured at fair value
Derivative Financial Liabilities
Liabilities for which fair values are disclosed
Fixed rate Borrowings
Floating rate Borrowings
Total
31st March, 2020
Nil
64.03
31st March, 2020
11,119.13
8,997.36
31st March, 2020
1,191.78
28,301.02
Nil
Nil
Nil
64.03
20,116.49
29,492.80
12,310.91
37,362.41
Nil
49,673.32
442
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
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
Investment in Government Securities
Liabilities measured at fair value
Derivative Financial Liabilities
Liabilities for which fair values are disclosed
Fixed rate Borrowings
Floating rate Borrowings
Total
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)
Total
₹ crore
₹ crore
₹ crore
₹ crore
31st March, 2019
126.16
31st March, 2019
31st March, 2019
87.96
Nil
Nil
31st March, 2019
38.65
31st March, 2019
423.27
676.04
Nil
Nil
Nil
24.76
Nil
Nil
0.16
126.32
Nil
397.71
Nil
Nil
Nil
87.96
397.71
24.76
38.65
423.27
24.76
397.87
1,098.67
31st March, 2019
Nil
113.35
31st March, 2019
8,890.13
7,259.52
31st March, 2019
1,069.94
31,321.04
Nil
Nil
Nil
113.35
16,149.65
32,390.98
9,960.07
38,693.91
Nil
48,653.98
Derivative instruments not in hedging relationship
31st March, 2019
Note: There has been no transfer between level 1 and level 2 during the period.
40.3 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:
Debt (i)
Less: Cash and Bank balances
Net debt
Capital (ii)
Capital and net debt
Net debt to Total Capital plus net debt ratio (%)
31st March, 2020
₹ crore
31st March, 2019
₹ crore
49,214.78
2,075.73
47,139.05
19,566.02
66,705.07
70.67
49,131.63
769.57
48,362.06
18,305.51
66,667.57
72.54
443
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
40. Financial Instruments (Contd.)
(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) Capital 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.
No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March,
2020 and 31st March, 2019.
40.4 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.
40.4.1 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, 2020 and 31st March, 2019.
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, 2020. 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.
444
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
The following table analyzes foreign currency assets and liabilities on balance sheet dates:
Foreign Currency Liabilities
In USD
In EURO
In GBP
In JPY
In VND
Foreign Currency Assets
In USD
In EURO
In ZAR
In VND
In TAKA
31st March, 2020
Foreign
Currency
(In Millions)
₹ crore
31st March, 2019
Foreign
Currency
(In Millions)
₹ crore
207.01
1,563.81
412.07
2,849.95
2.55
0.06
328.72
790.21
21.09
0.59
22.86
0.25
0.42
*
157.84
Nil
3.27
0.03
9.86
Nil
31st March, 2020
Foreign
Currency
(In Millions)
₹ crore
31st March, 2019
Foreign
Currency
(In Millions)
₹ crore
4.58
Nil
0.03
35.88
0.21
34.59
Nil
0.01
0.01
0.02
8.85
0.06
0.01
Nil
0.20
61.19
0.46
0.01
Nil
0.02
* Denotes figures below 50,000/-
(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, 2020
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
As of 31st March, 2019
Rupee depreciate by ₹ 1 against USD
Rupee appreciate by ₹ 1 against USD
(+) ₹ 43.02
(-) ₹ 43.02
Nil
Nil
(-) ₹ 2.91
(+) ₹2.91
(-) ₹ 1.09
(+) ₹ 0.61
Effect on Equity (before tax)
Effect on Profit (before tax)
₹ crore
Notes:
1) +/- Gain/Loss
2) The impact of depreciation/ appreciation on foreign currency other than U.S.Dollar on profit before tax of the Group is not significant.
(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 market place.
445
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
40. Financial Instruments (Contd.)
The following table gives details in respect of outstanding foreign exchange forward and option contracts:
Outstanding Contracts
Other Derivatives
Forward contracts
In USD
In ZAR
In GBP
In YEN
Option contracts
In USD
Other Derivatives
Forward contracts
In USD
In EURO
In GBP
In YEN
Option contracts
In USD
Buy/ Sell
Foreign Currency
(In Millions)
31st March, 2020
Nominal Value in
₹ crore
Fair Value
in ₹ crore
Buy
Sell
Buy
Buy
Buy
596.95
1,300.00
Nil
2.94
4,509.49
548.96
Nil
0.20
174.18
52.49
Nil
*
286.57
2,164.82
74.15
Buy/ Sell
Foreign Currency
(In Millions)
31st March, 2019
Nominal Value in
₹ crore
Fair Value
in ₹ crore
Buy
Buy
Buy
Buy
Buy
336.26
2,325.60
(84.12)
0.08
Nil
5.16
0.62
Nil
0.32
*
Nil
*
119.82
828.69
(14.14)
Note: Fair Value in brackets denotes liability.
* Denotes figures below 50,000/-
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.
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.
b.
(i)
446
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
40. Financial Instruments (Contd.)
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 Equity/Profit before tax
As of 31st March, 2020
As of 31st March, 2019
50 bps increase
50 bps decrease
50 bps increase
50 bps decrease
(+) ₹ 147.46
(-) ₹ 147.46
(+) ₹ 168.39
(-) ₹ 168.39
(-) ₹ 147.46
(+) ₹ 147.46
(-) ₹ 168.39
(+) ₹ 168.39
₹ crore
(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 2020
Nominal amounts
Fair value assets (liabilities)
31st March 2019
Nominal amounts
Fair value assets (liabilities)
40.4.2 Credit risk management
Less than 1 year
1 to 5 years
1,473.08
(14.38)
276.64
1.38
923.16
(36.05)
2,593.55
8.29
₹ crore
5 years +
128.18
(13.16)
Nil
Nil
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, 2020
31st March, 2019
₹ crore
4,456.18
113.88
622.12
1,991.22
712.99
799.42
4,638.25
177.74
603.52
558.34
322.86
837.85
8,695.81
7,138.56
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.
40.4.3 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 roll forward or, if required,
can be refinanced from long term borrowings.
447
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
40. Financial Instruments (Contd.)
The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted
payments.
Up to 1 year
1 to 5 years
5+ years
Total
Carrying Amount
₹ crore
31st March, 2020
Non-Derivatives
Borrowings #
Trade Payables
Lease Liabilities
Other Financial Liabilities
Total Non-Derivative Liabilities
Derivatives
Other Financial Liabilities
Total Derivative Liabilities
31st March, 2019
Non-Derivatives
Borrowings #
Trade Payables
Other Financial Liabilities
Total Non-Derivative Liabilities
Derivatives
Other Financial Liabilities
Total Derivative Liabilities
18,472.76
27,607.27
25,413.87
71,493.89
5,095.44
404.98
2,763.60
Nil
1,856.24
43.77
Nil
7,535.36
677.75
5,095.44
9,796.59
3,485.12
49,218.43
5,095.44
3,560.22
3,485.12
26,736.78
29,507.28
33,626.98
89,871.04
61,359.21
64.03
64.03
Nil
Nil
Nil
Nil
64.03
64.03
64.03
64.03
20,515.40
23,357.51
24,175.16
68,048.07
5,481.49
2,250.42
22.75
61.93
Nil
625.38
5,504.24
2,937.73
49,131.63
5,504.24
2,937.73
28,247.31
23,442.19
24,800.54
76,490.04
57,573.60
113.35
113.35
Nil
Nil
Nil
Nil
113.35
113.35
113.35
113.35
# 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.
41. Segment Reporting
From the current year, the Group has changed its organization structure into various operating verticals for efficient
monitoring and pursuing growth. Consequently, reporting to Chief Operating Decision Maker (CODM) has been changed
which has resulted into change in the composition of reportable segments. Accordingly, corresponding information for
comparative year has been restated in the segment reporting.
Information reported to the CODM for the purpose of resource allocation and assessment of segment performance focuses
on business segment which comprises of Generation, Renewables, Transmission and Distribution and Others. Specifically,
the Group's reportable segments under Ind AS are as follows:
Generation: Comprises of generation of power from hydroelectric sources and thermal sources (coal, gas and oil) from
plants owned and operated under lease arrangement and related ancillary services.
Renewables: Comprises of generation of power from renewable energy sources i.e. wind and solar and related ancillary
services
Transmission and Distribution: Comprises of transmission and distribution network, sale of power to retail customers
through distribution network and related ancillary services.
Others: Comprises of project management contracts/infrastructure management services, property development and
lease rent of oil tanks.
448
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
41. Segment Reporting (Contd.)
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:
Particulars
Segment Revenue (Refer Note 3.15 and 28)
Generation
Renewables
Transmission and Distribution
Others
(Less):
Inter Segment Revenue - Generation
(Less):
Inter Segment Revenue - Renewables
Inter Segment Revenue - Others
(Less):
Total Segment Revenue
Discontinued Operations- Others #
Revenue / Income from Operations (including Net Movement in Regulatory Deferral
Balances)
Segment Results
Generation
Renewables
Transmission and Distribution
Others
Total Segment Results
(Less): Finance Costs
Add/(Less): Exceptional Item - Generation (Refer Note 12 and 37e)
Add/(Less): Exceptional Item - Transmission and Distribution (Refer Note 12)
Add/(Less): Exceptional Item - Unallocable Income/(Expense) (Refer Note 6b (i) b, (ii) & (iii)
Add/(Less): Unallocable Income/(Expense) (Net)
Profit/(Loss) Before Tax from Continuing Operations
Profit/(Loss) Before Tax from Discontinued Operations
Impairment Loss on Remeasurement to Fair Value (Refer Note 17c)
Profit/(Loss) Before Tax from Discontinued Operations
Segment Assets
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Assets classified as held for sale # (Refer Note 17c)
Total Assets
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
14,532.74
3,977.45
14,002.70
255.53
32,768.42
(3,582.99)
(235.61)
(12.56)
15,645.16
3,610.39
14,147.26
234.03
33,636.84
(3,417.53)
(230.43)
(5.24)
28,937.26
29,983.64
343.74
143.59
29,281.00
30,127.23
2,765.46
1,499.66
1,922.14
193.12
2,486.61
1,426.85
2,126.99
168.76
6,380.38
6,209.21
(4,493.73)
(4,170.00)
(351.35)
(190.00)
767.51
255.35
2,368.16
(81.64)
(361.00)
(442.64)
40,076.13
19,533.81
17,859.37
1,361.59
9,037.18
1,880.07
(45.00)
(106.41)
1,897.24
34.05
3,819.09
(191.82)
Nil
(191.82)
39,842.59
18,315.93
17,338.05
1,001.24
5,600.82
2,064.30
89,748.15
84,162.93
449
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
41. Segment Reporting (Contd.)
Particulars
Segment Liabilities
Generation
Renewables
Transmission and Distribution
Others
Unallocable*
Liabilities classified as held for sale # (Refer Note 17c)
Total Liabilities
Capital Expenditure (to the extent allocable to the segment)
Generation
Renewables
Transmission and Distribution
Others
Discontinued Operations#
Depreciation/Amortisation (to the extent allocable to the segment)
Generation
Renewables
Transmission and Distribution
Others
RECONCILIATION OF REVENUE
Particulars
Revenue from Operations
Add/(Less): Net Movement in Regulatory Deferral Balances
Add/(Less): Net Movement in Regulatory Deferral Balances in respect of earlier years
Add/(Less): Deferred Tax Recoverable/(Payable) (Refer Note 3.15)
Add/(Less): Unallocable Revenue
Total Segment Revenue
Discontinued Operations- Others #
Total Segment Revenue as reported above
# Pertains to Strategic Engineering Division being classified as Discontinued Operations.
* Includes amount classified as held for sale other than Strategic Engineering Division.
Notes:
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
3,685.28
1,596.45
5,294.05
128.71
56,113.53
1,032.07
4,149.69
1,588.46
4,846.36
138.16
52,001.82
966.27
67,850.09
63,690.76
292.04
692.51
1,120.75
45.06
45.74
283.84
2,144.19
963.96
48.96
87.29
2,196.10
3,528.24
1,079.30
837.22
634.92
22.31
939.60
816.79
565.50
13.68
2,573.75
2,335.57
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
29,136.37
(451.68)
(21.32)
284.31
(10.42)
29,881.06
(340.19)
274.26
169.20
(0.69)
28,937.26
29,983.64
343.74
143.59
29,281.00
30,127.23
1. Comparative figures for Statement of Profit and Loss items are for the year ended 31st March, 2019 and Balance Sheet items are as at 31st March,
2019.
2. Revenue from power distribution companies on sale of electricity with which Group has entered into a Power Purchase Agreement accounts
for more than 10% of Total Revenue.
3. Transfer prices between operating segments are on an arm's length basis in a manner similar to transactions with third parties.
450
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
41. Segment Reporting (Contd.)
(b)
Geographic Information:
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
Particulars
Revenue from External Customers
Domestic
Overseas
Segment Assets:
Non Current Assets
Domestic
Overseas
Current Assets
Domestic
Overseas
Regulatory Deferral Account - Assets
Domestic
Unallocable Assets
Total Assets
Capital Expenditure (to the extent allocable to the segment)
Domestic
Overseas
For the year ended
31st March, 2020
For the year ended
31st March, 2019
₹ crore
28,911.24
369.76
29,281.00
29,523.45
603.78
30,127.23
52,470.93
11,971.70
64,442.63
52,261.58
8,844.60
61,106.18
8,616.26
291.84
8,908.10
9,298.13
335.37
9,633.50
5,480.17
5,480.17
5,758.13
5,758.13
10,917.25
7,665.12
89,748.15
84,162.93
2,196.09
0.01
2,196.10
3,528.02
0.22
3,528.24
42
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.
451
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
6
3
5
9
.
7
0
4
1
.
)
2
7
1
1
(
.
5
5
0
4
.
.
2
8
7
3
3
2
5
2
.
e
m
o
c
n
i
7
3
0
.
)
1
3
0
(
.
8
0
1
.
6
9
8
.
.
7
2
0
1
4
8
8
0
1
.
.
)
8
7
2
9
8
(
)
7
6
3
2
(
.
)
1
0
0
(
.
)
5
0
3
(
.
)
4
8
7
4
(
.
)
8
6
0
(
.
)
0
2
0
(
.
.
7
9
7
1
2
1
7
2
.
)
1
0
0
(
.
1
2
5
.
-
-
-
)
8
0
0
(
.
)
7
2
1
(
.
)
2
0
0
(
.
)
1
0
0
(
.
8
7
5
.
7
0
0
.
-
4
1
0
.
-
-
)
2
8
0
(
.
)
2
0
0
(
.
-
9
9
0
.
0
8
8
.
)
8
4
8
(
.
.
1
5
1
8
1
7
7
4
2
.
.
2
6
7
5
4
.
2
3
1
1
3
7
1
7
5
.
.
9
5
1
0
5
1
,
-
)
2
2
0
(
.
3
0
0
.
3
2
0
.
1
8
4
.
1
8
9
3
.
6
6
0
.
3
1
2
1
.
5
2
8
.
2
5
1
.
)
6
7
2
5
(
.
)
1
3
0
(
.
)
0
2
2
2
(
.
)
6
1
0
(
.
-
-
)
4
2
2
(
.
)
7
8
3
(
.
6
0
0
.
)
6
6
0
(
.
-
-
e
m
o
c
n
i
)
3
4
6
(
.
)
4
0
0
(
.
)
1
7
2
(
.
)
2
0
0
(
.
-
)
7
2
0
(
.
)
7
4
0
(
.
-
1
0
0
.
)
8
0
0
(
.
-
-
-
-
-
-
-
-
-
-
-
)
3
0
0
(
.
-
-
-
-
-
-
-
-
-
-
9
2
5
9
.
1
6
1
1
.
)
5
2
1
(
.
)
5
1
0
(
.
.
6
7
2
8
1
.
2
7
8
3
1
1
9
6
1
.
5
8
9
7
.
6
5
2
6
.
7
1
7
5
.
.
7
4
6
2
1
3
7
9
.
2
6
7
.
7
9
6
.
1
4
5
1
.
.
7
8
2
6
3
1
,
-
)
8
0
5
5
(
.
.
6
0
5
9
3
.
5
8
4
8
1
.
2
1
8
4
1
1
0
5
.
8
3
4
1
.
8
4
0
1
.
1
7
0
4
.
9
4
0
.
6
3
0
.
8
3
1
.
.
2
8
7
3
3
5
4
1
1
.
.
)
4
5
0
9
8
(
)
7
1
0
3
(
.
.
4
1
4
1
4
3
0
4
1
.
)
1
0
0
(
.
)
1
1
3
(
.
)
8
1
7
4
(
.
)
8
6
0
(
.
)
0
2
0
(
.
.
8
6
2
2
1
1
7
2
.
)
1
0
0
(
.
1
2
5
.
-
-
-
)
1
1
0
(
.
)
0
6
1
(
.
)
2
0
0
(
.
)
1
0
0
(
.
6
1
4
.
9
0
0
.
-
8
1
0
.
-
-
)
2
8
0
(
.
)
3
0
0
(
.
-
-
)
8
4
8
(
.
)
9
2
0
(
.
2
0
1
.
0
8
8
.
3
0
0
.
0
3
0
.
9
1
6
.
8
1
6
4
.
)
7
8
1
(
.
9
3
3
1
.
6
2
6
.
-
.
9
3
6
3
7
7
,
.
7
6
6
2
2
2
3
2
1
.
.
8
8
1
5
2
.
0
5
9
6
7
2
,
.
6
8
6
3
0
7
,
-
-
.
8
9
5
5
4
8
,
8
0
2
2
.
5
6
0
.
4
0
0
.
2
7
0
.
1
9
7
.
0
1
0
2
.
5
1
4
2
.
-
-
.
7
9
1
6
2
5
1
,
9
8
5
6
.
.
1
6
3
6
2
.
1
5
2
3
2
.
3
4
8
6
0
2
,
.
3
1
2
3
0
4
,
)
2
3
1
(
.
)
5
0
3
(
.
.
2
1
3
7
4
3
,
.
1
0
4
5
9
2
7
2
.
.
7
6
0
3
0
5
,
-
-
.
0
1
6
6
1
2
,
-
-
-
-
-
1
3
6
.
3
0
8
3
.
1
0
0
2
.
.
4
5
6
0
4
4
0
7
5
.
.
7
4
4
2
2
1
,
.
5
7
4
8
6
1
,
-
-
.
6
2
6
0
5
.
4
4
0
9
0
1
,
-
-
9
1
6
.
2
0
0
.
-
1
1
0
.
-
-
-
-
6
0
0
.
6
1
1
.
6
1
0
.
0
5
3
.
1
8
4
.
-
-
5
4
1
.
1
1
3
.
)
3
6
0
(
.
)
5
1
0
(
.
.
9
7
1
9
6
5
9
3
2
.
)
6
0
0
(
.
0
8
4
6
.
-
)
1
0
0
(
.
8
3
6
7
.
)
1
0
0
(
.
5
4
7
.
2
4
1
.
)
9
7
1
2
(
.
.
9
2
0
0
3
2
,
.
7
4
4
3
0
2
,
.
3
4
9
2
9
.
9
2
4
5
8
.
8
6
3
5
8
.
2
4
0
5
5
1
,
6
5
2
3
.
4
1
0
.
6
5
0
.
0
5
0
.
1
4
4
.
9
5
8
.
0
4
7
.
-
)
1
0
0
(
.
2
7
0
1
.
-
-
7
4
1
.
5
0
0
.
-
4
1
0
.
-
-
-
6
1
0
.
2
0
0
.
)
5
0
0
(
.
-
0
9
4
.
4
3
4
.
8
9
1
.
2
8
1
.
0
3
3
.
2
8
1
.
s
c
i
m
a
r
e
C
a
t
a
T
s
a
n
w
o
n
k
y
l
r
e
m
r
o
f
(
d
t
L
s
c
i
m
a
r
e
C
L
C
T
.
)
d
t
L
.
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
.
d
t
L
y
g
r
e
n
E
n
e
e
r
G
r
e
w
o
P
a
t
a
T
.
d
t
L
s
l
m
e
t
s
y
S
r
a
o
S
r
e
w
o
P
a
t
a
T
.
d
t
L
a
r
f
n
I
L
P
D
N
.
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
.
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
.
d
t
L
r
e
w
o
P
t
a
r
a
j
u
G
l
a
t
s
a
o
C
.
d
t
L
r
e
w
o
P
n
o
h
t
i
a
M
.
d
t
L
d
i
r
g
o
r
c
i
M
e
b
a
w
e
n
e
R
P
T
l
.
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
.
d
t
L
i
l
a
n
r
i
K
P
T
.
d
t
L
r
u
p
a
o
S
P
T
l
.
d
t
L
m
r
a
f
d
n
W
a
p
u
S
i
a
r
i
h
B
s
a
n
w
o
n
k
y
l
r
e
m
r
o
F
(
.
d
t
L
.
e
t
P
s
t
n
e
m
t
s
e
v
n
I
a
r
i
h
B
s
e
i
r
a
i
d
i
s
b
u
S
n
g
i
e
r
o
F
3
)
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
.
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
.
d
t
L
s
t
n
e
m
t
s
e
v
n
I
i
r
u
p
v
h
B
i
.
d
t
L
s
t
n
e
m
t
s
e
v
n
I
i
l
o
p
o
h
K
)
.
d
t
L
t
n
e
m
t
s
e
v
n
I
2
)
d
e
t
a
d
i
l
o
s
n
o
C
(
.
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
.
d
t
L
n
o
i
t
u
b
i
r
t
s
i
D
j
r
e
m
A
P
T
.
d
t
L
a
y
r
u
a
S
e
e
y
a
a
h
t
s
a
r
i
h
C
.
d
t
L
m
r
a
f
d
n
W
a
r
a
g
a
V
i
i
.
i
d
t
L
m
r
a
f
d
n
W
d
a
v
a
o
o
P
l
i
.
d
t
L
m
r
a
f
d
n
W
e
d
a
v
N
i
i
#
.
d
t
L
y
n
a
p
m
o
C
r
e
w
o
P
a
t
a
T
e
h
T
1
)
d
e
t
a
d
i
l
o
s
n
o
C
(
.
d
t
L
o
c
l
e
N
.
d
t
L
.
o
C
t
n
e
m
t
s
e
v
n
I
b
a
a
T
-
f
A
s
e
i
r
a
i
d
i
s
b
u
S
n
a
i
d
n
I
.
d
t
L
.
i
o
C
g
n
d
a
r
T
r
e
w
o
P
a
t
a
T
l
a
t
o
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
r
e
h
t
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
v
i
s
n
e
h
e
r
p
m
o
c
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
l
a
t
o
t
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
l
a
t
o
T
n
i
e
r
a
h
S
r
e
h
t
O
n
i
e
r
a
h
S
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
r
o
t
fi
o
r
P
f
o
e
r
a
h
S
)
s
s
o
L
(
.
e
.
i
e
m
o
c
n
I
l
a
t
o
T
e
m
o
c
n
I
l
r
e
h
t
O
s
u
P
e
u
n
e
v
e
R
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
s
t
e
s
s
A
t
e
N
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
s
t
s
e
r
e
t
n
I
g
n
i
l
l
o
r
t
n
o
C
n
o
N
d
n
a
s
r
e
n
w
O
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
L
d
n
a
t
fi
o
r
P
d
n
a
s
t
e
s
s
A
t
e
N
f
o
t
n
e
m
e
t
a
t
S
.
3
4
452
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
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
l
a
t
o
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
e
m
o
c
n
i
r
e
h
t
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
v
i
s
n
e
h
e
r
p
m
o
c
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
l
a
t
o
t
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
3
6
5
5
.
8
8
1
.
)
3
6
3
1
(
.
)
6
4
0
(
.
9
8
2
1
.
.
8
7
6
5
3
2
0
1
.
4
0
0
.
l
a
t
o
T
n
i
e
r
a
h
S
r
e
h
t
O
n
i
e
r
a
h
S
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
r
o
t
fi
o
r
P
f
o
e
r
a
h
S
)
s
s
o
L
(
.
e
.
i
e
m
o
c
n
I
l
a
t
o
T
e
m
o
c
n
I
l
r
e
h
t
O
s
u
P
e
u
n
e
v
e
R
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
s
t
e
s
s
A
t
e
N
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
I
g
n
i
l
l
o
r
t
n
o
C
n
o
N
d
n
a
s
r
e
n
w
O
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
L
d
n
a
t
fi
o
r
P
d
n
a
s
t
e
s
s
A
t
e
N
f
o
t
n
e
m
e
t
a
t
S
.
3
4
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
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
8
0
1
6
.
)
8
3
1
1
(
.
3
1
3
.
)
3
0
1
(
.
6
9
4
3
.
e
m
o
c
n
i
2
6
1
.
)
0
3
0
(
.
8
0
0
.
)
3
0
0
(
.
3
9
0
.
)
7
0
1
1
(
.
)
9
2
0
(
.
-
-
-
8
7
1
6
.
.
3
6
9
0
1
)
1
1
0
(
.
0
0
3
4
.
.
4
8
0
7
3
2
0
0
.
7
2
7
5
.
-
8
9
9
.
.
8
5
5
1
3
)
2
0
0
(
.
4
0
1
3
.
6
5
2
2
.
8
6
6
8
.
)
2
7
1
(
.
0
3
3
5
.
2
0
0
.
)
7
0
4
2
(
.
.
)
8
7
1
4
1
(
-
-
-
-
4
6
1
.
1
9
2
.
4
1
1
.
3
8
9
.
2
5
1
.
-
-
-
6
2
0
.
7
3
8
.
2
8
0
.
0
6
0
.
0
3
2
.
-
)
6
7
3
(
.
)
5
0
0
(
.
1
4
1
.
)
4
6
0
(
.
5
4
5
.
5
2
2
.
-
-
6
6
0
.
7
2
0
.
-
-
)
5
9
6
1
(
.
)
7
0
2
(
.
-
-
-
-
)
7
2
0
(
.
)
3
0
0
(
.
-
-
-
-
0
0
3
4
.
8
0
9
.
5
2
4
4
.
2
0
0
.
2
0
0
.
5
2
2
.
.
7
8
3
2
1
-
8
8
3
2
.
7
6
6
1
.
6
6
4
1
.
4
5
8
2
.
)
2
7
1
(
.
0
3
3
5
.
)
6
4
4
(
.
8
0
0
.
-
-
-
-
4
2
5
.
1
1
1
.
9
3
5
.
-
-
7
2
0
.
0
1
5
1
.
-
1
9
2
.
3
0
2
.
9
7
1
.
8
4
3
.
)
1
2
0
(
.
0
5
6
.
)
4
5
0
(
.
1
0
0
.
3
1
3
.
)
3
0
1
(
.
1
9
1
5
.
1
1
0
.
)
3
0
0
(
.
6
7
1
.
)
7
0
1
1
(
.
)
8
3
0
(
.
-
-
-
-
8
7
1
6
.
.
0
9
9
0
1
)
1
1
0
(
.
-
-
-
-
-
9
0
2
.
2
7
3
.
2
0
3
1
.
4
4
0
.
.
6
7
1
6
3
6
2
2
1
.
-
3
7
7
.
)
2
0
0
(
.
.
1
7
1
9
1
)
2
0
0
(
.
6
1
7
.
9
8
5
.
2
0
2
7
.
-
-
-
6
2
0
.
0
5
6
.
4
2
0
.
0
2
0
.
4
4
2
.
.
)
2
3
0
7
1
(
)
7
7
5
(
.
-
-
-
-
)
6
0
0
(
.
-
)
1
6
9
1
(
.
)
6
6
0
(
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
2
8
1
7
7
3
,
.
0
0
0
0
1
.
6
5
0
2
8
.
0
0
0
0
1
.
6
2
1
5
9
2
,
.
0
0
0
0
1
.
3
2
3
1
0
5
3
,
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
.
0
0
0
0
1
0
7
9
7
.
)
7
3
8
1
(
.
3
1
3
.
9
2
2
.
.
0
9
8
1
6
7
1
0
.
)
4
0
0
(
.
1
0
0
.
-
2
3
1
.
.
d
t
L
y
n
a
p
m
o
C
g
n
d
i
s
e
t
a
i
c
o
s
s
A
n
a
i
d
n
I
l
i
u
B
d
e
t
a
i
c
o
s
s
A
e
h
T
.
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
C
L
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
.
i
d
t
L
s
r
e
e
n
g
n
E
n
u
m
h
s
a
Y
.
j
d
t
L
s
t
c
e
o
r
P
a
t
a
T
1
5
0
8
.
7
1
0
.
.
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
s
e
t
a
i
c
o
s
s
A
n
g
i
e
r
o
F
.
5
4
4
8
4
.
4
5
7
1
6
6
6
3
2
.
)
7
0
0
(
.
6
7
0
.
)
9
1
7
5
(
.
.
6
8
0
7
7
.
9
1
4
6
2
.
6
9
9
7
7
)
4
0
0
(
.
2
0
0
.
6
8
8
2
.
.
2
5
2
2
5
1
,
9
1
0
.
.
3
1
5
8
2
.
8
0
6
2
2
.
0
5
5
5
3
.
2
7
8
9
2
)
7
8
7
2
(
.
.
6
8
0
3
4
.
4
7
1
5
3
0
9
0
.
.
2
6
2
1
9
6
4
,
3
0
1
.
2
3
1
.
5
0
0
.
-
-
)
2
1
0
(
.
4
6
1
.
6
5
0
.
6
6
1
.
-
-
-
6
0
0
.
5
2
3
.
1
6
0
.
8
4
0
.
6
7
0
.
4
6
0
.
-
2
9
0
.
5
7
0
.
)
6
0
0
(
.
.
0
0
0
0
1
5
)
d
e
t
a
d
i
l
o
s
n
o
C
(
k
b
T
a
n
a
r
a
s
s
e
k
u
S
i
t
l
u
m
a
r
a
B
T
P
4
)
d
e
t
a
d
i
l
o
s
n
o
C
(
r
e
w
o
P
a
m
i
r
P
n
a
t
n
a
m
i
l
a
K
T
P
6
7
)
d
e
t
a
d
i
l
o
s
n
o
C
(
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
)
d
e
t
a
d
i
l
o
s
n
o
C
(
V
B
s
d
n
a
l
r
e
h
t
e
N
i
t
e
h
k
m
o
r
o
K
n
o
i
t
a
r
o
p
r
o
C
r
e
w
o
P
i
h
z
e
T
i
h
z
e
t
I
)
d
e
t
a
d
i
l
o
s
n
o
C
(
.
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
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
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
.
d
t
L
.
e
t
P
s
t
n
e
m
t
s
e
v
n
I
e
c
i
d
n
a
C
a
m
a
t
a
r
P
g
n
a
b
m
a
T
a
s
u
N
T
P
a
i
s
e
n
o
d
n
I
l
a
t
i
p
a
C
l
e
v
r
a
M
T
P
i
d
a
b
A
a
m
i
r
P
a
y
r
a
k
w
D
T
P
i
s
e
i
t
i
t
n
E
l
o
r
t
n
o
C
y
l
t
n
o
J
n
a
i
d
n
i
I
.
d
t
L
n
o
i
s
s
i
m
s
n
a
r
T
s
k
n
i
l
r
e
w
o
P
.
d
t
L
r
e
w
o
P
o
r
d
y
H
r
a
g
u
D
.
d
t
L
y
g
r
e
n
E
l
a
i
r
t
s
u
d
n
I
.
d
t
L
y
n
a
p
m
o
C
l
a
o
C
i
i
n
k
a
d
n
a
M
.
d
t
L
s
e
n
M
i
l
a
o
C
d
e
b
u
T
.
i
l
d
t
L
g
n
d
o
H
d
n
a
L
e
c
a
o
S
l
s
e
i
t
i
t
n
E
l
o
r
t
n
o
C
y
l
t
n
o
J
n
g
i
e
r
o
F
i
a
i
s
e
n
o
d
n
I
i
n
m
t
u
r
A
T
P
l
a
o
C
a
m
i
r
P
m
i
t
l
a
K
T
P
.
d
t
L
)
n
a
m
y
a
C
(
s
e
c
r
u
o
s
e
R
l
a
o
c
o
d
n
I
.
d
t
L
)
n
a
m
y
a
C
(
s
e
c
r
u
o
s
e
R
C
P
K
l
a
o
c
o
d
n
I
453
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
.
)
8
1
9
1
6
1
(
,
-
)
3
8
6
(
.
)
3
8
7
8
(
.
)
3
3
1
(
.
.
)
2
0
1
0
2
(
-
-
.
)
1
0
7
9
2
(
.
3
6
5
5
8
1
,
-
-
-
-
-
-
-
-
-
-
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
l
a
t
o
T
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
-
4
6
5
1
.
-
5
1
0
.
0
9
1
.
-
-
-
-
5
0
2
.
.
5
2
8
3
8
r
e
h
t
O
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
e
v
i
s
n
e
h
e
r
p
m
o
c
t
fi
o
r
p
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
d
e
t
a
d
i
l
o
s
n
o
c
e
m
o
c
n
i
l
a
t
o
t
t
n
u
o
m
A
)
e
r
o
r
c
₹
(
f
o
%
s
A
s
t
e
s
s
a
t
e
n
d
e
t
a
d
i
l
o
s
n
o
c
-
-
-
-
-
-
-
-
-
-
.
)
2
8
4
3
6
1
(
,
-
)
8
9
6
(
.
)
3
8
7
8
(
.
)
3
3
1
(
.
.
)
2
9
2
0
2
(
-
-
.
)
6
0
9
9
2
(
.
8
3
7
1
0
1
,
-
-
-
-
-
-
-
-
-
-
.
)
7
1
4
2
4
5
(
,
-
-
-
-
-
-
-
-
.
6
0
9
8
5
9
2
,
-
-
-
-
-
-
-
-
-
-
.
)
6
5
4
1
0
5
2
(
,
-
)
1
3
2
3
(
.
.
)
7
3
7
3
5
(
.
)
2
8
1
0
7
1
(
,
)
6
7
1
1
(
.
)
6
8
9
1
(
.
)
2
9
8
2
(
.
.
)
4
0
2
3
3
2
(
,
.
2
0
6
6
5
9
1
,
-
-
-
-
-
-
-
-
-
-
3
)
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
s
e
i
r
a
i
d
i
s
b
u
S
n
g
i
e
r
o
F
l
a
t
o
T
x
a
t
r
e
t
f
a
t
fi
o
r
P
/
s
t
e
s
s
A
t
e
N
d
e
t
a
d
i
l
o
s
n
o
C
.
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
.
d
t
L
r
e
w
o
P
n
o
h
t
i
a
M
.
d
t
L
a
r
f
n
I
L
P
D
N
.
i
d
t
L
m
r
a
f
d
n
W
d
a
v
a
o
o
P
l
i
1
)
d
e
t
a
d
i
l
o
s
n
o
C
(
.
d
t
L
o
c
l
e
N
s
e
i
r
a
i
d
i
s
b
u
S
n
a
i
d
n
I
n
o
i
t
a
d
i
l
o
s
n
o
c
f
o
t
u
o
g
n
i
s
i
r
a
s
t
n
e
m
t
s
u
d
A
j
t
s
e
r
e
t
n
I
g
n
i
l
l
o
r
t
n
o
C
-
n
o
N
)
a
)
b
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
e
m
o
c
n
I
e
v
i
s
n
e
h
e
r
p
m
o
C
)
s
s
o
L
(
e
m
o
c
n
I
l
r
e
h
t
O
s
u
P
e
u
n
e
v
e
R
s
e
i
t
i
l
i
b
a
i
l
l
a
t
o
t
s
u
n
m
i
l
a
t
o
T
n
i
e
r
a
h
S
r
e
h
t
O
n
i
e
r
a
h
S
r
o
t
fi
o
r
P
f
o
e
r
a
h
S
.
e
.
i
e
m
o
c
n
I
l
a
t
o
T
s
t
e
s
s
a
l
a
t
o
t
.
e
.
i
s
t
e
s
s
A
t
e
N
)
.
d
t
n
o
C
(
s
t
s
e
r
e
t
n
I
g
n
i
l
l
o
r
t
n
o
C
n
o
N
d
n
a
s
r
e
n
w
O
o
t
e
l
b
a
t
u
b
i
r
t
t
a
s
s
o
L
d
n
a
t
fi
o
r
P
d
n
a
s
t
e
s
s
A
t
e
N
f
o
t
n
e
m
e
t
a
t
S
.
3
4
454
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
43. Statement of Net Assets and Profit and Loss attributable to Owners and Non Controlling
Interests (Contd.)
Reconciliation of Total Income (i.e. Revenue plus other income)
Total Income as per Statement of Profit & Loss
Net Movement in Regulatory Deferral Balances (Net)
Remeasurement of Deferred Tax Recoverable on account of New Tax Regime (Net)
Add: Revenue from Discontinued Operations
Total Income as per the above statement
Note:
₹ crore
29,698.98
(188.69)
(265.00)
29,245.29
343.77
29,589.06
1. Accounts of Tatanet Services Ltd. have been consolidated with Nelco Ltd.
2. Accounts of all subsidiaries of Walwhan Renewable Energy Ltd. (Refer Note 2.6) have been consolidated with Walwhan Renewable Energy Ltd.
3. Accounts of PT Mitratama Perkasa have been consolidated with PT Sumber Energi Andalan Tbk.
4. Accounts of PT Citra Prima Buana, PT Guruh Agung and PT Citra Kusuma Perdana have been consolidated with PT Kalimantan Prima Power.
5. Accounts of PT Antang Gunung Meratus have been consolidated with PT Baramulti Sukessarana Tbk.
6. Accounts of Adjaristsqali Georgia LLC have been consolidated with Adjaristsqali Netherlands BV.
7. Accounts of Koromkheti Georgia LLC have been consolidated with Koromkheti Netherlands BV.
#
Includes Discontinued Operations
43.1 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
31st March, 2020
31st March, 2019
India
India
26%
49%
26%
49%
A
Maithon Power Ltd.
(i) Summarised Balance Sheet:
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Attributable to:
Equity holders of parent
Non-controlling interest
As at
31st March, 2020
₹ crore
As at
31st March, 2019
₹ crore
3,741.21
860.24
(1,337.24)
(1,195.78)
2,068.43
3,812.79
1,047.49
(1,805.34)
(974.33)
2,080.61
1,531.08
537.35
1,540.09
540.52
455
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
43. Summarised Financial Information of Material Non Controlling Interests (Contd.)
(ii) Summarised Statement of Profit and Loss:
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
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
456
For the year ended
31st March, 2020
₹ crore
2,741.17
28.33
(1.78)
(1,575.51)
(40.80)
(193.11)
(243.81)
(257.83)
456.66
(118.84)
337.82
Nil
337.82
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)
272.90
(0.32)
272.58
249.99
87.83
259.00
91.00
201.71
70.87
129.50
45.50
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
1,355.86
(295.63)
(975.68)
84.55
(2.74)
(23.97)
(23.28)
(49.99)
As at
31st March, 2020
₹ crore
4,408.09
1,090.56
20.04
5,221.85
(4,946.65)
(2,320.76)
3473.13
As at
31st March, 2019
₹ crore
4,162.00
945.88
20.04
4,759.14
(4,172.86)
(2,531.56)
3,182.64
1,771.32
1701.81
1,623.17
1,559.47
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
43. Summarised Financial Information of Material Non Controlling Interests (Contd.)
(ii) Summarised Statement of Profit and Loss:
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, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
8,350.66
105.32
(6,299.63)
(504.90)
(344.90)
(333.16)
(327.33)
Nil
646.06
(231.92)
414.14
(3.87)
410.27
209.24
201.03
7,849.84
108.02
(5,896.86)
(469.70)
(348.88)
(309.64)
(318.94)
(106.40)
507.44
(171.57)
335.87
(0.40)
335.47
171.10
164.37
61.09
58.69
54.30
52.17
For the year ended
31st March, 2020
₹ crore
For the year ended
31st March, 2019
₹ crore
671.99
(625.09)
(32.62)
14.28
1,055.05
(597.21)
(535.56)
(77.72)
457
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and as
at 1st April, 2018
Consolidated Balance Sheet as at 31st March, 2019
Reported Amount
Restatements
Restated Amount
Note
₹ crore
₹ crore
₹ crore
1
2
2
1
41,101.50
2,575.70
1,641.57
1,561.82
11,989.69
861.41
192.99
144.73
565.62
316.75
238.01
89.49
1,358.07
62,637.35
Nil
Nil
Nil
Nil
523.79
Nil
Nil
(54.17)
Nil
Nil
Nil
Nil
Nil
469.62
41,101.50
2,575.70
1,641.57
1,561.82
12,513.48
861.41
192.99
90.56
565.62
316.75
238.01
89.49
1,358.07
63,106.97
1,706.42
Nil
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
Nil
Nil
Nil
Nil
Nil
(29.28)
Nil
Nil
Nil
Nil
(29.28)
(439.44)
0.90
Nil
0.90
166.98
4,445.26
837.85
645.45
142.00
87.18
37.90
241.59
2.67
1,881.85
10,195.15
5,102.68
78,404.80
5,758.13
84,162.93
ASSETS
Non-current Assets
(a) Property, Plant and Equipment
(b) Capital Work-in-Progress
(c) Goodwill
(d) Other Intangible Assets
(e)
(f ) Financial Assets
Investments accounted for using the Equity Method
(i) Other Investments
(ii) Trade Receivables
(iii) Loans
(iv) Finance Lease Receivables
(v) 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
Inventories
(a)
(b) Financial Assets
(i)
Investments
(ii) Trade Receivables
(iii) Unbilled Revenue
(iv) Cash and Cash Equivalents
(v) Bank Balances other than (iv) above
(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
Total Assets before Regulatory Deferral Account
Regulatory Deferral Account - Assets
TOTAL ASSETS
458
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and as
at 1st April, 2018 (contd.)
Reported Amount
Restatements
Restated Amount
Note
₹ crore
₹ crore
₹ crore
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
(i)
Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
(i)
Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
270.50
1,500.00
16,450.66
18,221.16
2,166.66
20,387.82
31,139.23
Nil
22.75
687.31
3.74
1,056.81
333.60
1,873.75
35,117.19
13,875.38
Nil
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
Nil
Nil
84.35
84.35
Nil
84.35
270.50
1,500.00
16,535.01
18,305.51
2,166.66
20,472.17
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(83.45)
Nil
(83.45)
Nil
(83.45)
Nil
0.90
31,139.23
Nil
22.75
687.31
3.74
1,056.81
333.60
1,873.75
35,117.19
13,875.38
Nil
5,481.49
6,480.79
150.22
93.55
1,499.64
27,581.07
992.50
63,690.76
Nil
84,162.93
459
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and
as at 1st April, 2018 (Contd.)
Consolidated Balance Sheet as at 1st April, 2018
Reported Amount
Restatements
Restated Amount
Note
₹ crore
₹ crore
₹ crore
1
2
2
1
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
Nil
Nil
Nil
Nil
418.61
Nil
Nil
(54.17)
Nil
Nil
Nil
Nil
Nil
364.44
41,431.61
1,652.60
1,641.57
1,583.08
11,530.27
881.11
190.05
77.56
574.76
273.68
167.59
118.17
1,577.31
61,699.36
1,623.08
Nil
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
Nil
Nil
Nil
Nil
Nil
(30.33)
Nil
Nil
Nil
Nil
(30.33)
(439.44)
(105.33)
Nil
(105.33)
436.16
2,788.93
810.09
1,061.16
124.62
754.47
34.27
401.59
14.77
1,512.32
9,561.46
4,339.26
75,600.08
6,304.56
81,904.64
ASSETS
Non-current Assets
(a) Property, Plant and Equipment
(b) Capital Work-in-Progress
(c) Goodwill
(d) Other Intangible Assets
(e)
(f ) Financial Assets
Investments accounted for using the Equity Method
(i) Other Investments
(ii) Trade Receivables
(iii) Loans
(iv) Finance Lease Receivables
(v) 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
Inventories
(a)
(b) Financial Assets
(i)
Investments
(ii) Trade Receivables
(iii) Unbilled Revenue
(iv) Cash and Cash Equivalents
(v) Bank Balances other than (iv) above
(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
Total Assets before Regulatory Deferral Account
Regulatory Deferral Account - Assets
TOTAL ASSETS
460
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and
as at 1st April, 2018 (contd.)
Reported Amount
Restatements
Restated Amount
Note
₹ crore
₹ crore
₹ crore
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
(i)
Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
(i)
Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) 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
270.50
1,500.00
14,629.38
16,399.88
2,015.29
18,415.17
22,356.31
Nil
21.00
647.31
3.74
516.56
300.00
1,841.48
25,686.40
18,827.28
Nil
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
Nil
Nil
(20.83)
(20.83)
Nil
(20.83)
270.50
1,500.00
14,608.55
16,379.05
2,015.29
18,394.34
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
(84.50)
Nil
(84.50)
Nil
(84.50)
Nil
(105.33)
22,356.31
Nil
21.00
647.31
3.74
516.56
300.00
1,841.48
25,686.40
18,827.28
Nil
5,609.82
9,942.98
160.38
108.94
1,785.72
36,435.12
903.78
63,025.30
485.00
81,904.64
461
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm 44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and as
at 1st April, 2018 (Contd.)
Statement of Profit and Loss for the year ended 31st March, 2019
Reported Amount
Restatements
Restated Amount
I
II
III
IV
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
V
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 Balances
Add/(Less): Net movement in Regulatory Deferral Balances in respect of earlier
years
Add/(Less): Deferred Tax Recoverable/(Payable)
VI
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
VII Profit/(Loss) Before Exceptional Items and Tax
Less : Exceptional Items
Impairment in respect of Property, Plant and Equipment
Provision for Contingencies
Gain on Sale of Investments in Associates
VIII Profit/(Loss) Before Tax
IX
Tax Expense/(Credit)
Current Tax
Deferred Tax
Deferred Tax relating to earlier years
Deferred Tax Recoverable/(Payable)
X
XI
Profit/(Loss) for the Year from Continuing Operations
Profit/(Loss) before tax from Discontinued Operations
Note
3
1
3
1
2
4
1
₹ crore
29,558.64
395.83
29,954.47
6,359.53
11,640.02
919.35
345.22
248.23
24.37
1,339.05
4,170.00
2,393.13
2,260.15
29,699.05
255.42
(340.19)
274.26
Nil
(65.93)
₹ crore
322.42
(9.68)
312.74
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
312.74
Nil
Nil
169.20
169.20
₹ crore
29,881.06
386.15
30,267.21
6,359.53
11,640.02
919.35
345.22
248.23
24.37
1,339.05
4,170.00
2,393.13
2,260.15
29,699.05
568.16
(340.19)
274.26
169.20
103.27
189.49
481.94
671.43
1,287.02
1,476.51
(106.41)
(45.00)
1,897.24
1,745.83
3,222.34
584.78
544.02
18.91
(491.62)
656.09
2,566.25
(191.82)
114.81
596.75
Nil
Nil
Nil
Nil
596.75
(60.12)
Nil
Nil
491.62
431.50
165.25
Nil
1,401.83
2,073.26
(106.41)
(45.00)
1,897.24
1,745.83
3,819.09
524.66
544.02
18.91
Nil
1,087.59
2,731.50
(191.82)
462
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and
as at 1st April, 2018 (contd.)
Statement of Profit and Loss for the year ended 31st March, 2019
Reported Amount
Restatements
Restated Amount
Note
₹ crore
₹ crore
₹ crore
XII
Tax Expense/(Credit) of Discontinued Operations
Current Tax
Deferred Tax
Tax Expense/(Credit) of Discontinued Operations
XIII Profit/(Loss) for the Year from Discontinued Operations
XIV Profit/(Loss) for the Year
XV Other Comprehensive Income/(Expenses) - Continuing Operations
A (i)
Items that will not be reclassified to Profit or Loss
(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
(ii) Tax relating to items that will not be reclassified to Profit or Loss
(a) Current Tax
(b) Deferred Tax
(iii) Share of Other Comprehensive Income/(Loss) of Associates and Joint
B (i)
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
(ii) Share of Other Comprehensive Income/(Loss) of Associates and Joint
Ventures accounted for using the Equity Method (net of tax)
1
1
Other Comprehensive Income/(Expense)
XVI Other Comprehensive Income - Discontinued Operations
A (i)
(ii)
Items that will not be reclassified to Profit or Loss
Income tax relating to items that will not be reclassified to Profit or Loss
XVII Total Other Comprehensive Income for the year (XV + XVI)
XVIII Total Comprehensive Income for the year (XIV + XVII)
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
XIX 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
(71.92)
5.94
(65.98)
(125.84)
2,440.41
Nil
Nil
Nil
Nil
165.25
(71.92)
5.94
(65.98)
(125.84)
2,605.66
(23.91)
2.68
1.66
(31.05)
6.81
(0.06)
Nil
Nil
Nil
Nil
Nil
Nil
(1.37)
(0.06)
187.18
23.24
165.18
(1.14)
0.40
(0.74)
164.44
Nil
0.11
0.05
Nil
Nil
Nil
0.05
(23.91)
2.68
1.66
(31.05)
6.81
(0.06)
(1.43)
187.18
23.35
165.23
(1.14)
0.40
(0.74)
164.49
2,604.85
165.30
2,770.15
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
165.25
Nil
165.25
0.05
Nil
0.05
165.30
Nil
165.30
(0.01)
0.39
Nil
0.39
2,356.19
249.47
2,605.66
164.92
(0.43)
164.49
2,521.11
249.04
2,770.15
8.29
8.54
(0.46)
8.08
463
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
44. Restated Consolidated Financial Statements for the year ended 31st March, 2019 and as
at 1st April, 2018 (Contd.)
Reconciliation of Total Equity as at 31st March, 2019 and 1st April, 2018
Equity as per Reported Financial Statements
Equity Share Capital
Unsecured Perpetual Securities
Other Equity
Recognition of Share of Profit of Associate
Equity as per Restated Financial Statements
As at
31st March, 2019
₹ crore
As at
1st April, 2018
₹ crore
270.50
1,500.00
16,450.66
18,221.16
270.50
1,500.00
14,629.38
16,399.88
84.35
(20.83)
18,305.51
16,379.05
Reconciliation of Total Comprehensive Income for the year ended 31st March, 2019
Total Comprehensive Income as per Reported Financial Statements
Other Income
Share of Net Profit of Associates and Joint Ventures accounted for using the Equity Method
Tax Expense
Share of other comprehensive income that will not be reclassified to profit or loss of associates and joint
ventures accounted for using the equity method
Share of other comprehensive income that will be reclassified to profit or loss of associates and joint ventures
accounted for using the equity method
Total Comprehensive Income as per Restated Financial Statements
For the year ended
31st March, 2019
₹ crore
2,604.85
(9.68)
114.81
60.12
(0.06)
0.11
2,770.15
Notes:
1.
In the earlier years, the Group had intended to sell its investment in Tata Projects Ltd. (Associate company of the Group) and had initiated the
process to identify the suitable buyer. Accordingly, the Group had classified the investment as assets held for sale. During the year, the Group
has reassessed its plan to sell its investment in Tata Projects Ltd. and accordingly, has reclassified its investment in Tata Projects Ltd from ‘Asset
held for sale’ to ‘Investments in Associate accounted under equity method’. As per Ind AS 28 - 'Investments in Associates and Joint Ventures',
the said reclassification is required from the date of classification to ‘Assets held for sale’ and hence, comparative figures have been restated.
The Group has recognized its share of profit from date of classification to 1st April, 2018 in Other Equity and profit from 1st April, 2018 to 31st
March, 2019 in Statement of profit or loss and other comprehensive income for the year ended 31st March, 2019. Dividend received from Tata
Projects Ltd. in the previous year has been reversed and adjusted in the carrying value of investment.
2. The Group hitherto followed a practice of presenting loans given to joint venture and Group’s share of provision for losses of such joint
venture separately in the balance sheet. During the year, the Group has reassessed its policy for such presentation and has now netted off the
provision of losses with the loan given to joint venture. There is no impact in the Other Equity and Profit/ (Loss) on account of such change in
presentation.
3. Refer Note 3.15
4. Refer Note 3.14
5. There is no significant impact on the Cash flows of the Group for the year ended 31st March, 2019.
6. As required by Ind AS 1 – Presentation of Financial Statements, the Group has presented Balance Sheet as at 1st April, 2018 for retrospective
application of changes in accounting policies. The Group has given a detailed note for changes in accounting policies and has disclosed the
impact on the financial statements in the above notes and accordingly, accompanying notes to Balance Sheet as at 1st April, 2018 has not been
disclosed in the Consolidated Ind AS financial statements.
464
The Tata Power Company Limited Integrated Annual Report 2019-20Notes to the Consolidated Financial Statements
45.
Impact of COVID-19
India and other global markets experienced significant disruption in operations resulting from uncertainty caused by
the worldwide coronavirus pandemic. Majority of Group’s business includes generation, transmission and distribution of
power. The Group also has investments in joint ventures and associates involved in coal mining and providing Engineering,
Procurement & Construction services (‘EPC’). Considering power supply being an essential service, management believes
that there is not much of an impact likely due to this pandemic except that there exists some uncertainty over impact of
COVID-19 on future business performance of its coal mining companies and its EPC operations. Management believes that
the said uncertainty is not likely to impact the recoverability of the carrying value its investment in such joint ventures and
associate. The Group is also closely monitoring developments, its operations, liquidity and capital resources and is actively
working to minimize the impact of this unprecedented situation.
Further, some generating units of the Group has received notices primarily from state distribution companies (together
referred to as Discoms) invoking the provisions of Force Majeure provided in the Power Purchase Agreement (PPA) and
notifying the event of lockdown as a force majeure event. Discoms have claimed that no cause of action for breach or
liability should arise on account of impossible performance of PPA as a consequence of Force Majeure and also claimed
that no Late Payment Surcharge for payments which become delayed beyond due date of bill shall be payable. The Group
has replied to these notices rejecting the claims made by Discoms relying upon the order of Central Electricity Regulatory
Commission dated 3rd April, 2020 clarification issued by Ministry of Power dated 6th April, 2020 and Ministry of New and
Renewable Energy circular dated 4th April, 2020. The Group has not received any response to its replies from Discoms.
Management believes there is no merit to the claims made by Discoms and accordingly no impact has been given in the
financial statements.
46.
Approval of Consolidated Financial Statements
The Consolidated financial statements were approved for issue by the Board of Directors on 19th May, 2020.
As per our report of even date
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration No.324982E/E300003
per ABHISHEK AGARWAL
Partner
Membership No. 112773
Mumbai, 19th May, 2020
For and on behalf of the Board,
PRAVEER SINHA
CEO & Managing Director
DIN 01785164
BANMALI AGRAWALA
Director
DIN 00120029
RAMESH SUBRAMANYAM
Chief Financial Officer
H. M. MISTRY
Company Secretary
Mumbai, 19th May, 2020
465
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
4
0
0
5
.
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
0
0
4
7
.
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
0
0
1
5
.
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
0
0
1
5
.
l
i
N
.
0
0
0
0
1
l
i
N
0
5
.
2
9
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
0
0
4
7
.
l
i
N
7
0
7
5
.
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
0
0
2
7
.
l
i
N
.
0
0
0
0
1
l
i
N
.
0
0
0
0
1
l
i
N
.
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
)
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
/
t
fi
o
r
P
g
n
i
d
l
o
h
n
o
y
t
i
u
q
E
s
e
r
a
h
S
n
o
y
t
i
u
q
E
s
e
r
a
h
S
-
-
e
r
a
h
s
d
n
e
d
i
v
i
D
d
n
e
d
i
v
i
D
)
%
(
n
o
i
t
a
x
a
t
.
l
c
n
i
(
)
s
s
o
L
(
r
e
t
f
a
r
o
f
n
o
i
t
a
x
a
t
)
s
s
o
L
(
e
r
o
f
e
b
n
o
i
t
a
x
a
t
)
x
a
t
d
e
r
r
e
f
e
D
l
a
t
o
T
e
m
o
c
n
I
r
e
h
t
O
e
m
o
c
n
I
-
n
r
u
T
4
1
r
e
v
o
-
t
s
e
v
n
I
s
t
n
e
m
t
e
N
s
t
e
s
s
A
l
a
t
o
T
s
e
i
t
i
l
i
b
a
i
L
.
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
r
e
h
t
O
y
t
i
u
q
E
)
t
s
e
r
e
t
n
I
-
n
o
N
.
l
c
n
I
(
g
n
i
l
l
o
r
t
n
o
c
e
r
a
h
S
l
a
t
i
p
a
c
.
f
e
r
P
.
l
c
n
I
(
d
n
a
s
e
r
a
h
s
l
a
u
t
e
p
r
e
P
)
s
e
i
t
i
r
u
c
e
S
s
e
i
r
a
i
d
i
s
b
u
S
:
"
A
"
t
r
a
P
8
3
.
4
1
8
8
5
.
6
2
.
0
2
.
9
6
3
2
2
6
7
3
.
.
3
9
9
1
2
6
1
0
.
9
8
5
6
.
.
8
1
4
1
2
.
7
0
0
8
2
7
0
3
4
.
2
8
.
2
2
7
4
0
1
.
1
2
1
.
8
6
1
1
.
2
3
.
2
1
1
3
.
0
1
0
2
1
.
.
5
7
2
6
2
.
1
6
3
6
2
8
3
.
2
.
9
9
5
6
2
8
8
.
2
5
2
3
7
0
1
.
.
1
7
0
4
9
4
9
.
.
9
1
0
5
.
8
8
1
5
2
4
9
3
.
.
4
9
7
4
2
l
i
N
.
1
2
9
6
2
.
2
0
1
4
4
3
2
.
0
1
7
1
5
.
6
1
2
0
0
6
1
.
.
2
8
7
3
3
4
8
.
8
1
1
.
6
6
6
5
4
.
0
5
9
6
7
2
,
3
3
.
8
2
.
7
1
1
4
7
2
,
3
3
.
6
6
1
.
3
4
8
6
0
2
,
.
2
0
3
3
5
2
,
.
5
4
1
0
6
4
,
.
1
5
9
5
5
.
2
9
8
0
5
1
,
e
t
a
R
t
a
s
a
t
s
1
3
0
2
0
2
,
h
c
r
a
M
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
y
r
a
i
d
i
s
b
u
s
d
e
n
r
e
c
n
o
c
g
n
i
r
i
u
q
c
a
y
r
a
i
d
i
s
b
u
s
e
e
p
u
R
i
n
a
d
n
I
0
2
-
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
0
2
-
r
a
M
-
1
3
0
0
-
v
o
N
-
7
2
.
d
t
L
.
o
C
t
n
e
m
t
s
e
v
n
I
b
a
a
T
-
f
A
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
3
0
-
c
e
D
-
1
3
.
d
t
L
.
i
o
C
g
n
d
a
r
T
r
e
w
o
P
a
t
a
T
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
5
0
-
p
e
S
-
2
0
.
d
t
L
r
e
w
o
P
n
o
h
t
i
a
M
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
y
r
a
i
d
i
s
b
u
S
e
h
t
f
o
e
m
a
N
N
S
)
4
5
.
0
9
8
(
l
i
N
)
4
5
.
0
9
8
(
6
8
.
6
3
0
7
,
9
9
9
1
.
7
8
.
6
1
0
7
,
l
i
N
.
3
1
2
3
0
4
,
,
.
8
3
9
7
4
4
1
1
5
1
1
5
.
,
8
1
.
)
7
1
4
0
0
1
1
(
,
0
3
.
6
3
0
5
1
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
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
I
-
C
O
A
M
R
O
F
466
1
2
3
4
5
6
7
8
9
7
8
.
2
6
3
1
,
.
9
2
3
7
1
.
6
1
6
3
5
1
,
.
6
7
4
8
6
1
,
.
1
0
4
8
6
1
5
7
0
.
,
.
1
7
6
8
2
4
,
.
7
4
4
3
0
2
,
.
3
9
9
8
6
3
,
)
8
0
5
5
(
.
l
i
N
)
8
0
5
5
(
.
l
i
N
l
i
N
l
i
N
.
6
8
5
6
2
3
,
.
2
4
9
2
9
.
8
4
6
3
3
2
,
.
6
0
5
9
3
4
0
0
1
.
.
0
1
5
0
4
6
2
.
6
0
5
6
2
.
6
0
5
l
i
N
l
i
N
9
2
.
4
5
8
9
5
.
6
1
7
1
,
.
0
4
4
2
7
5
,
.
0
9
5
6
2
3
,
.
8
8
0
7
5
2
,
)
1
0
0
(
.
l
i
N
)
1
0
0
(
.
)
1
1
3
(
.
)
3
0
0
(
.
)
4
1
3
(
.
l
i
N
l
i
N
.
5
8
4
8
1
3
4
1
1
.
9
2
.
6
9
1
.
4
1
4
1
4
.
2
9
1
3
2
.
7
0
6
4
6
.
4
4
0
9
0
1
,
.
6
2
3
9
9
7
,
l
i
N
l
i
N
3
3
.
4
.
1
3
5
0
1
.
1
1
6
8
0
1
,
l
i
N
l
i
N
.
5
9
7
8
8
7
,
6
0
3
3
.
5
0
5
8
.
l
i
N
l
i
N
)
8
1
7
4
(
.
4
2
9
4
.
6
0
2
.
.
1
0
4
5
9
5
5
.
6
3
.
6
4
7
1
9
.
1
1
2
2
9
3
,
.
2
4
0
5
5
1
,
.
6
3
5
0
0
2
,
.
8
7
5
5
5
3
,
)
2
3
1
(
.
7
5
.
2
)
6
0
3
(
.
9
7
1
1
.
5
2
1
.
3
7
8
.
.
7
6
0
3
0
5
,
5
2
.
4
1
4
6
,
.
2
9
4
4
4
1
1
,
)
8
6
0
(
.
)
0
2
.
0
(
l
i
N
l
i
N
)
8
6
0
(
.
)
0
2
.
0
(
l
i
N
l
i
N
.
8
6
2
2
1
7
2
.
4
3
.
5
9
6
5
1
.
0
1
6
6
1
2
,
l
i
N
l
i
N
0
4
5
2
.
l
i
N
l
i
N
l
i
N
l
i
N
)
3
6
0
(
.
8
6
0
.
)
5
1
0
(
.
0
2
.
0
5
0
0
.
5
0
0
.
.
0
7
0
4
1
2
,
1
2
7
3
.
.
9
7
1
9
6
.
3
6
7
0
3
1
,
.
2
4
9
9
9
1
,
3
6
5
5
.
9
1
4
.
2
8
9
5
.
.
8
7
6
5
3
.
8
1
3
6
2
0
6
3
9
.
.
7
5
5
7
1
1
,
1
5
.
0
8
.
3
9
8
3
2
1
,
.
4
4
9
1
3
1
,
7
3
.
0
3
0
2
,
0
1
4
.
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
7
0
-
n
u
J
-
2
2
3
1
.
d
t
L
s
t
n
e
m
t
s
e
v
n
I
a
r
i
h
B
.
5
3
5
2
9
8
0
4
.
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
7
0
-
n
u
J
-
2
2
3
1
.
d
t
L
s
t
n
e
m
t
s
e
v
n
I
i
r
u
p
v
h
B
i
.
9
0
9
9
5
.
0
2
5
5
2
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
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
.
5
9
5
4
9
.
7
4
4
0
6
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
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
)
7
3
9
(
.
)
7
1
3
(
.
6
5
.
0
9
l
i
N
l
i
N
l
i
N
l
i
N
5
0
8
.
1
1
0
.
.
1
1
0
4
9
4
,
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
2
1
-
v
o
N
-
6
0
.
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
1
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
7
0
-
r
a
M
-
8
2
d
t
L
d
i
r
g
o
r
c
i
M
e
b
a
w
e
n
e
R
P
T
l
2
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
3
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
0
2
-
b
e
F
-
9
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
0
2
-
b
e
F
-
6
2
.
d
t
L
i
l
a
n
r
i
K
P
T
4
1
.
d
t
L
r
u
p
a
o
S
P
T
l
5
1
.
2
0
2
6
4
.
8
7
9
2
2
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
2
1
-
n
u
J
-
8
2
.
d
t
L
s
l
m
e
t
s
y
S
r
a
o
S
r
e
w
o
P
a
t
a
T
6
1
.
)
5
0
9
7
4
(
.
7
5
9
5
5
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
3
1
-
r
p
A
-
5
0
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
7
1
.
2
1
3
7
4
3
,
.
2
4
7
6
2
7
,
4
5
.
0
4
7
0
1
,
.
2
1
1
2
9
2
,
.
0
0
2
5
5
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
0
1
0
7
2
.
9
8
0
.
9
5
3
.
1
3
.
6
0
5
1
.
1
8
4
.
7
8
9
.
.
5
9
3
2
6
5
.
0
1
5
.
4
2
0
9
3
2
.
)
1
0
0
(
.
l
i
N
)
1
0
0
(
.
l
i
N
l
i
N
l
i
N
l
i
N
)
6
0
0
(
.
7
0
0
.
1
0
0
.
)
1
1
0
(
.
5
0
0
.
5
0
0
.
0
0
1
.
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
1
1
-
g
u
A
-
3
2
.
d
t
L
a
r
f
n
I
L
P
D
N
8
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
1
1
-
n
a
J
-
5
0
.
d
t
L
y
g
r
e
n
E
n
e
e
r
G
r
e
w
o
P
a
t
a
T
9
1
.
1
6
0
1
8
0
2
.
9
6
2
1
.
)
6
7
5
1
(
.
7
3
.
6
2
4
5
5
7
.
r
a
l
l
o
D
S
U
7
1
-
r
a
M
-
1
3
9
0
-
g
u
A
-
6
2
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
(
$
&
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
k
b
T
n
a
a
d
n
A
l
i
g
r
e
n
E
r
e
b
m
u
S
T
P
0
2
*
*
l
i
N
)
2
8
0
(
.
l
i
N
l
i
N
l
i
N
l
i
N
*
*
l
i
N
)
2
8
0
(
.
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
)
1
0
0
(
.
4
0
0
.
)
1
0
0
(
.
4
0
0
.
3
0
0
.
3
0
0
.
)
6
0
0
(
.
)
6
0
0
(
.
5
0
0
.
5
0
0
.
8
3
.
6
7
1
5
.
8
8
1
.
9
8
4
6
2
)
4
8
0
(
.
1
2
7
7
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
7
0
0
.
)
4
8
.
2
1
(
7
0
9
3
.
3
2
.
6
2
)
6
3
.
2
3
(
2
5
9
1
.
1
2
5
.
3
7
4
.
4
9
9
.
.
3
0
8
3
3
2
.
0
0
8
7
3
.
4
0
0
.
.
9
7
4
6
.
2
1
9
7
.
1
9
3
4
1
0
5
.
4
0
3
.
0
6
.
6
7
2
8
1
.
3
5
7
6
1
9
2
.
0
5
3
.
7
4
4
2
2
1
,
1
8
1
2
.
.
6
6
2
0
2
1
,
.
5
0
3
7
1
9
2
.
0
0
3
2
,
.
2
4
3
2
5
5
,
.
1
7
3
2
8
7
,
.
3
9
8
8
6
1
,
.
6
3
1
1
6
)
8
4
8
(
.
1
0
1
.
0
8
.
8
l
i
N
l
i
N
1
2
.
0
)
8
4
8
(
.
.
2
0
0
2
1
3
.
0
1
7
9
1
.
1
0
1
.
1
0
9
.
4
5
.
6
0
4
0
1
5
.
.
4
4
1
0
4
3
0
7
5
.
9
0
0
.
.
4
9
6
5
)
3
6
3
1
(
.
)
1
5
.
2
(
.
)
4
1
6
1
(
9
8
.
2
1
9
8
.
2
1
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
)
9
7
1
2
(
.
.
5
0
7
2
1
.
6
2
5
0
1
)
1
3
.
2
2
(
3
5
.
0
5
4
7
.
2
4
1
.
.
5
4
2
9
1
.
0
9
9
9
1
)
5
5
.
2
(
0
0
0
1
.
.
0
5
3
5
3
.
2
9
4
5
3
2
4
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
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
5
1
-
c
e
D
-
0
1
.
d
t
L
m
r
a
f
d
n
W
a
p
u
S
i
1
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
5
1
-
c
e
D
-
7
1
.
d
t
L
m
r
a
f
d
n
W
e
d
a
v
N
i
i
2
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
6
1
-
n
a
J
-
9
0
.
d
t
L
m
r
a
f
d
n
W
i
i
d
a
w
a
o
o
P
l
3
2
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
2
1
)
e
l
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
o
t
p
u
d
e
t
a
d
i
l
o
s
n
o
c
(
.
d
t
L
s
c
i
m
a
r
e
C
L
C
T
4
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
5
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
6
1
-
p
e
S
-
4
1
.
d
t
L
l
y
g
r
e
n
E
e
b
a
w
e
n
e
R
l
n
a
h
w
a
W
6
2
2
)
d
e
t
a
d
i
l
o
s
n
o
C
(
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
7
1
-
b
e
F
-
7
2
.
d
t
L
m
r
a
f
d
n
W
i
i
a
r
a
g
a
V
7
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
7
1
-
l
u
J
-
1
0
.
d
t
L
n
o
i
t
u
b
i
r
t
s
i
D
j
r
e
m
A
P
T
8
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
6
1
-
n
u
J
-
4
1
.
d
t
L
a
y
r
u
a
S
e
e
y
a
a
h
t
s
a
r
i
h
C
9
2
)
7
3
.
8
1
(
9
3
.
8
6
.
2
0
0
5
)
8
3
.
8
1
(
*
6
9
0
.
l
e
b
u
R
n
a
i
s
s
u
R
0
2
-
r
a
M
-
1
3
7
1
-
g
u
A
-
7
1
3
1
,
2
1
.
d
t
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
0
3
The Tata Power Company Limited Integrated Annual Report 2019-20
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
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
)
e
r
o
r
c
₹
(
n
i
n
o
i
t
a
d
-
i
l
o
s
n
o
C
n
o
i
t
a
d
-
i
l
o
s
n
o
C
x
a
t
r
e
t
f
a
o
t
y
n
a
p
m
o
c
g
n
i
d
l
o
h
e
r
a
h
S
|
t
o
n
s
i
r
e
p
s
a
d
e
t
i
d
u
a
t
s
e
t
a
l
t
e
e
h
S
e
c
n
a
l
a
B
d
e
r
e
d
i
s
n
o
c
t
o
N
d
e
r
e
d
i
s
n
o
C
/
t
fi
o
r
P
d
e
r
e
d
i
s
n
o
c
n
i
)
s
s
o
L
(
h
t
r
o
w
t
e
N
e
l
b
a
t
u
b
i
r
t
t
a
y
h
w
n
o
s
a
e
R
e
r
u
t
n
e
V
t
n
i
o
J
/
e
t
a
i
c
o
s
s
A
w
o
h
f
o
s
i
e
r
e
h
t
e
c
n
e
u
fl
n
i
t
n
a
c
fi
i
n
g
i
s
%
/
e
t
a
i
c
o
s
s
A
n
i
e
r
u
t
n
e
V
t
n
i
o
J
t
s
1
3
t
a
s
a
s
e
i
n
a
p
m
o
c
e
h
t
n
o
y
n
a
p
m
o
c
t
n
i
o
J
e
r
u
t
n
e
V
e
h
t
y
b
0
2
0
2
d
l
e
h
y
n
a
p
m
o
c
,
h
c
r
a
M
)
.
o
N
(
d
n
e
r
a
e
y
n
o
i
t
p
i
r
c
s
e
D
f
o
t
n
e
t
x
E
f
o
t
n
u
o
m
A
f
o
s
e
r
a
h
S
g
n
i
d
l
o
H
t
n
e
m
t
s
e
v
n
I
/
e
t
a
i
c
o
s
s
A
e
t
a
R
y
c
n
e
r
r
u
c
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
e
t
a
D
t
e
e
h
S
t
n
i
o
J
t
s
e
t
a
L
d
e
t
i
d
u
a
e
c
n
a
l
a
B
f
o
e
t
a
D
g
n
i
r
i
u
q
c
a
/
e
t
a
i
c
o
s
s
A
e
r
u
t
n
e
V
y
n
a
p
m
o
C
e
r
u
t
n
e
V
t
n
i
o
J
/
e
t
a
i
c
o
s
s
A
e
h
t
f
o
e
m
a
N
N
S
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
*
l
i
N
l
i
N
)
9
5
.
8
(
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
0
1
e
t
o
N
%
0
4
l
i
N
l
i
N
.
2
8
7
0
4
)
1
7
7
1
(
.
.
)
0
1
8
6
(
.
9
7
3
5
3
-
-
0
1
e
t
o
N
%
0
5
l
i
N
l
i
N
l
i
N
l
i
N
.
2
5
9
8
8
.
7
8
0
7
7
.
6
7
1
6
3
.
5
8
5
0
2
1
.
9
1
4
6
2
2
0
3
1
.
.
1
4
3
4
.
6
9
9
7
7
l
i
N
l
i
N
)
3
0
0
(
.
)
1
0
0
(
.
)
5
0
0
(
.
2
0
0
.
8
7
1
6
.
.
4
1
1
2
1
.
5
4
4
8
4
.
0
9
9
0
1
2
5
.
8
4
1
.
4
5
7
1
6
)
1
1
0
(
.
)
2
2
.
0
(
7
8
3
2
.
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
l
i
N
.
2
6
2
2
l
i
N
3
7
7
.
.
6
7
5
2
.
4
7
9
5
.
1
7
1
9
1
.
4
0
9
3
6
2
5
.
2
2
5
1
)
2
0
0
(
.
)
7
0
0
(
.
8
1
0
.
7
0
8
.
9
8
5
.
.
1
9
6
2
3
6
9
1
.
.
3
1
5
8
2
.
8
0
6
2
2
0
0
1
7
.
.
9
0
3
7
2
.
0
5
5
5
3
)
2
3
.
0
7
1
(
.
)
1
8
5
2
4
(
.
2
7
8
9
2
)
6
0
0
(
.
)
1
2
.
0
(
0
9
0
.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
0
1
e
t
o
N
%
0
4
0
2
.
0
1
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
0
1
e
t
o
N
%
3
3
.
3
3
0
3
9
3
.
,
0
0
8
7
9
1
0
1
,
,
0
0
0
0
0
3
9
3
,
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
0
1
e
t
o
N
%
3
3
.
3
3
7
7
0
.
7
6
6
6
6
7
,
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
8
0
-
l
u
J
-
8
1
2
1
.
d
t
L
y
n
a
p
m
o
C
l
a
o
C
i
n
i
k
a
d
n
a
M
1
1
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
2
1
-
p
e
S
-
2
1
2
1
.
i
l
d
t
L
g
n
d
o
H
d
n
a
L
e
c
a
o
S
l
2
1
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
0
1
.
0
1
e
t
o
N
%
8
3
.
8
2
0
9
1
.
0
0
5
7
,
4
5
5
7
.
r
a
l
l
o
D
S
U
6
1
-
p
e
S
-
0
3
2
1
-
g
u
A
-
6
1
)
e
l
a
s
l
r
o
f
d
e
h
r
e
t
f
a
e
r
e
h
t
6
1
0
2
,
r
e
b
m
e
t
p
e
S
h
t
0
3
o
t
p
u
(
d
e
t
a
d
i
l
o
s
n
o
c
a
s
a
k
r
e
P
a
m
a
t
a
r
t
i
M
T
P
1
$
&
3
1
,
4
)
d
e
t
a
d
i
l
o
s
n
o
C
(
d
e
t
a
d
i
l
o
s
n
o
c
(
a
i
s
e
n
o
d
n
I
i
n
m
t
u
r
A
T
P
2
s
e
r
u
t
n
e
V
t
n
i
o
J
0
1
e
t
o
N
%
0
3
.
5
1
2
5
6
0
0
0
3
,
4
5
5
7
.
r
a
l
l
o
D
S
U
4
1
-
r
a
M
-
1
3
7
0
-
n
u
J
-
6
2
$
&
3
1
)
e
l
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
0
1
e
t
o
N
%
0
3
.
1
2
7
5
3
4
,
0
4
5
3
2
1
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
7
0
-
n
u
J
-
6
2
3
1
l
a
o
C
a
m
i
r
P
m
i
t
l
a
K
T
P
0
1
e
t
o
N
%
0
3
1
3
.
4
9
7
3
,
0
0
3
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
7
0
-
n
u
J
-
6
2
3
1
&
2
1
.
d
t
L
)
n
a
m
y
a
C
(
s
e
c
r
u
o
s
e
R
l
a
o
c
o
d
n
I
0
1
e
t
o
N
%
0
3
0
2
.
0
0
1
e
t
o
N
%
0
3
2
3
.
0
0
0
0
0
6
,
0
8
3
2
8
,
5
0
0
0
.
a
y
i
a
p
u
R
R
D
I
4
1
-
r
a
M
-
1
3
7
0
-
n
u
J
-
6
2
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
$
&
3
1
,
2
1
)
e
l
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
5
0
0
0
.
a
y
i
a
p
u
R
R
D
I
0
2
-
r
a
M
-
1
3
7
0
-
n
u
J
-
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
0
1
e
t
o
N
%
1
5
.
3
4
4
8
4
0
0
0
0
8
,
,
6
8
3
2
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
3
0
-
l
u
J
-
7
0
.
d
t
L
n
o
i
s
s
i
m
s
n
a
r
T
s
k
n
i
l
r
e
w
o
P
0
1
e
t
o
N
%
4
7
.
4
5
7
1
6
0
1
e
t
o
N
%
0
5
5
5
3
2
.
,
0
0
0
0
4
8
2
9
4
,
,
2
0
0
0
5
2
3
4
,
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
7
0
-
b
e
F
-
3
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
1
1
-
r
p
A
-
1
2
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
7
0
-
v
o
N
-
0
2
.
d
t
L
r
e
w
o
P
o
r
d
y
H
r
a
g
u
D
.
d
t
L
y
g
r
e
n
E
l
a
i
r
t
s
u
d
n
I
2
1
.
d
t
L
s
e
n
M
i
l
a
o
C
d
e
b
u
T
0
1
3
4
5
6
7
8
9
0
1
e
t
o
N
%
0
3
6
8
.
8
2
3
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
0
1
-
t
c
O
-
8
2
0
1
e
t
o
N
%
0
3
.
7
4
1
2
5
1
,
0
0
0
8
1
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
0
1
-
t
c
O
-
8
2
0
1
e
t
o
N
%
0
3
*
9
5
4
7
0
1
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
0
1
-
t
c
O
-
8
2
0
1
e
t
o
N
%
0
3
.
9
8
4
8
2
9
6
7
0
1
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
0
1
-
t
c
O
-
8
2
3
1
.
d
t
L
.
e
t
P
s
t
n
e
m
t
s
e
v
n
I
e
c
i
d
n
a
C
3
1
3
1
a
m
a
t
a
r
P
g
n
a
b
m
a
T
a
s
u
N
T
P
4
1
3
1
&
2
1
a
i
s
e
n
o
d
n
I
l
a
t
i
p
a
C
l
e
v
r
a
M
T
P
5
1
3
1
&
2
1
i
d
a
b
A
a
m
i
r
P
a
y
r
a
k
w
D
T
P
i
6
1
0
1
e
t
o
N
%
0
3
.
1
9
4
0
2
0
0
5
7
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
1
1
-
n
a
J
-
1
0
3
1
&
5
)
d
e
t
a
d
i
l
o
s
n
o
C
(
r
e
w
o
P
a
m
i
r
P
n
a
t
n
a
m
i
l
a
K
T
P
7
1
0
1
e
t
o
N
%
6
2
.
4
7
6
4
3
1
,
,
0
0
0
0
9
2
0
8
6
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
2
1
-
v
o
N
-
9
0
3
1
&
6
)
d
e
t
a
d
i
l
o
s
n
o
C
(
k
b
T
a
n
a
r
a
s
s
e
k
u
S
i
t
l
u
m
a
r
a
B
T
P
8
1
0
1
e
t
o
N
%
0
4
.
8
8
5
6
2
9
5
4
6
1
,
.
8
7
2
8
o
r
u
E
0
2
-
r
a
M
-
1
3
3
1
-
y
a
M
-
9
0
3
1
&
7
)
d
e
t
a
d
i
l
o
s
n
o
C
(
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
9
1
0
1
e
t
o
N
%
0
3
0
9
0
.
*
*
0
0
3
0
0
5
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
4
1
-
l
u
J
-
2
0
3
1
&
2
1
d
t
L
)
n
a
m
y
a
C
(
s
e
c
r
u
o
s
e
R
C
P
K
l
a
o
c
o
d
n
I
0
2
.
8
7
2
8
o
r
u
E
0
2
-
r
a
M
-
1
3
4
1
-
y
a
M
-
9
0
3
1
&
2
1
,
8
)
d
e
t
a
d
i
l
o
s
n
o
C
(
V
B
s
d
n
a
l
r
e
h
t
e
N
i
t
e
h
k
m
o
r
o
K
1
2
0
0
5
2
5
4
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
5
1
-
r
p
A
-
9
2
l
d
e
h
r
e
t
f
a
e
r
e
h
t
0
2
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
(
.
d
t
L
n
o
i
t
a
r
o
p
r
o
C
r
e
w
o
P
i
h
z
e
T
i
h
z
e
t
I
2
2
$
&
3
1
)
e
l
a
s
r
o
f
0
1
e
t
o
N
%
6
2
.
0
0
3
5
3
6
3
7
4
1
,
4
5
5
7
.
r
a
l
l
o
D
S
U
0
2
-
r
a
M
-
1
3
6
1
-
y
a
M
-
9
1
2
1
.
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
3
2
*
*
*
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
0
1
e
t
o
N
%
3
3
.
3
3
7
0
0
.
0
6
6
6
6
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
7
1
-
r
a
M
-
1
3
5
1
-
g
u
A
-
7
1
$
&
2
1
.
d
t
L
e
t
a
v
i
r
P
m
o
c
l
i
M
H
T
L
4
2
467
Statutory ReportsFinancial StatementsFuture ready for smart choicesOverviewOur Emphasis on ValueOur Value-creation Paradigm
)
e
r
o
r
c
₹
(
n
i
n
o
i
t
a
d
-
i
l
o
s
n
o
C
n
o
i
t
a
d
-
i
l
o
s
n
o
C
x
a
t
r
e
t
f
a
o
t
y
n
a
p
m
o
c
g
n
i
d
l
o
h
e
r
a
h
S
|
t
o
n
s
i
r
e
p
s
a
d
e
t
i
d
u
a
t
s
e
t
a
l
t
e
e
h
S
e
c
n
a
l
a
B
d
e
r
e
d
i
s
n
o
c
t
o
N
d
e
r
e
d
i
s
n
o
C
/
t
fi
o
r
P
d
e
r
e
d
i
s
n
o
c
n
i
)
s
s
o
L
(
h
t
r
o
w
t
e
N
e
l
b
a
t
u
b
i
r
t
t
a
y
h
w
n
o
s
a
e
R
e
r
u
t
n
e
V
t
n
i
o
J
/
e
t
a
i
c
o
s
s
A
w
o
h
f
o
s
i
e
r
e
h
t
e
c
n
e
u
fl
n
i
t
n
a
c
fi
i
n
g
i
s
%
/
e
t
a
i
c
o
s
s
A
n
i
e
r
u
t
n
e
V
t
n
i
o
J
t
s
1
3
t
a
s
a
s
e
i
n
a
p
m
o
c
e
h
t
n
o
y
n
a
p
m
o
c
t
n
i
o
J
e
r
u
t
n
e
V
e
h
t
y
b
0
2
0
2
d
l
e
h
y
n
a
p
m
o
c
,
h
c
r
a
M
)
.
o
N
(
d
n
e
r
a
e
y
n
o
i
t
p
i
r
c
s
e
D
f
o
t
n
e
t
x
E
f
o
t
n
u
o
m
A
f
o
s
e
r
a
h
S
g
n
i
d
l
o
H
t
n
e
m
t
s
e
v
n
I
/
e
t
a
i
c
o
s
s
A
e
t
a
R
y
c
n
e
r
r
u
c
e
g
n
a
h
c
x
E
g
n
i
t
r
o
p
e
R
e
t
a
D
t
e
e
h
S
t
n
i
o
J
t
s
e
t
a
L
d
e
t
i
d
u
a
e
c
n
a
l
a
B
f
o
e
t
a
D
g
n
i
r
i
u
q
c
a
/
e
t
a
i
c
o
s
s
A
e
r
u
t
n
e
V
y
n
a
p
m
o
C
e
r
u
t
n
e
V
t
n
i
o
J
/
e
t
a
i
c
o
s
s
A
e
h
t
f
o
e
m
a
N
N
S
-
-
-
-
-
4
8
1
5
.
0
5
.
8
0
1
.
1
1
5
2
6
)
3
0
1
(
.
)
8
7
3
(
.
3
2
.
2
)
7
0
1
1
(
.
)
8
5
.
2
4
(
0
5
.
0
8
3
1
3
.
5
4
9
.
0
3
.
3
-
-
-
-
1
1
e
t
o
N
%
8
7
7
4
.
0
2
.
2
4
6
0
0
5
7
6
9
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
r
a
M
-
1
3
0
0
-
v
o
N
-
7
2
.
d
t
L
s
t
c
e
j
o
r
P
a
t
a
T
s
e
t
a
i
c
o
s
s
A
1
1
e
t
o
N
%
7
2
7
2
.
8
2
.
4
0
0
2
9
1
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
1
1
e
t
o
N
%
0
0
6
2
.
.
7
4
0
8
,
0
2
3
4
7
0
1
,
0
0
1
.
u
N
n
a
t
u
h
B
0
2
-
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
1
1
e
t
o
N
%
4
1
3
3
.
0
3
.
3
5
2
8
1
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
l
i
N
l
i
N
)
1
0
0
(
.
p
u
o
r
g
e
h
t
o
t
l
a
i
r
e
t
a
m
t
o
N
1
1
e
t
o
N
%
1
2
3
3
.
1
0
0
.
0
5
3
3
,
0
0
1
.
e
e
p
u
R
n
a
d
n
i
I
0
2
-
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
,
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
I
M
.
M
.
H
r
o
t
c
e
r
i
D
g
n
i
g
a
n
a
M
&
O
E
C
A
H
N
I
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
a
i
c
n
a
n
i
F
f
e
i
h
C
.
0
2
0
2
,
y
a
M
h
t
9
1
,
i
a
b
m
u
M
.
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
l
a
h
k
a
m
A
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
.
a
s
a
k
r
e
P
a
m
a
t
a
r
t
i
M
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
h
a
s
U
a
m
a
t
a
r
t
i
M
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
.
k
b
T
a
n
a
r
a
s
s
e
k
u
S
i
t
l
u
m
a
r
a
B
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
s
u
t
a
r
e
M
g
n
u
n
u
G
g
n
a
t
n
A
T
P
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
.
V
B
s
d
n
a
l
r
e
h
t
e
N
i
t
e
h
k
m
o
r
o
K
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
t
e
h
k
m
o
r
o
K
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
i
r
a
d
i
s
b
u
s
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
.
s
e
i
t
i
v
i
t
c
a
c
i
m
o
n
o
c
e
e
h
t
r
e
v
o
l
o
r
t
n
o
c
t
n
o
i
j
i
l
d
n
a
g
n
d
o
h
e
r
a
h
s
o
t
e
u
d
e
c
n
e
u
fl
n
.
i
l
g
n
d
o
h
e
r
a
h
s
o
t
e
u
d
e
c
n
e
u
fl
n
i
i
t
n
a
c
fi
n
g
i
s
i
s
i
e
r
e
h
T
t
n
a
c
fi
n
g
i
s
i
s
i
e
r
e
h
T
.
0
2
-
9
1
0
2
Y
F
r
o
f
s
t
n
u
o
c
c
A
t
n
e
m
e
g
a
n
a
M
n
o
d
e
s
a
B
.
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
e
p
s
a
e
r
a
s
e
r
u
t
n
e
v
t
n
o
i
j
d
n
a
s
e
i
i
r
a
d
i
s
b
u
s
n
g
e
r
o
f
i
f
o
s
e
r
u
g
F
i
.
)
e
s
n
e
p
x
e
(
/
e
m
o
c
n
i
l
y
r
o
t
a
u
g
e
r
e
t
a
r
s
e
d
u
l
c
n
i
r
e
v
o
n
r
u
T
.
e
l
l
a
S
r
o
f
d
e
h
s
e
t
o
n
e
D
1
2
3
4
5
6
7
8
9
0
1
1
1
2
1
3
1
4
1
$
:
s
e
t
o
N
.
"
*
"
y
b
d
e
t
o
n
e
d
e
r
a
0
0
0
0
5
₹
w
o
e
b
s
e
r
u
g
F
l
i
,
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
)
.
d
t
n
o
C
(
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
i
:
"
B
"
t
r
a
P
468
The Tata Power Company Limited Integrated Annual Report 2019-20
Notice
NOTICE IS HEREBY GIVEN THAT THE ONE HUNDRED
AND FIRST ANNUAL GENERAL MEETING OF THE TATA
POWER COMPANY LIMITED will be held on Thursday,
the 30th day of July 2020 at 3 p.m. (IST) through Video
Conferencing (“VC”)/Other Audio Visual Means (“OAVM”),
to transact the following business:-
Ordinary Business:
1.
To receive, consider and adopt the Audited Financial
Statements of the Company for the financial year ended
31st March 2020, together with the Reports of the Board
of Directors and the Auditors thereon.
2.
3.
4.
To receive, consider and adopt the Audited Consolidated
Financial Statements of the Company for the financial year
ended 31st March 2020, together with the Report of the
Auditors thereon.
To declare a dividend on Equity Shares for the financial
year ended 31st March 2020.
To appoint a Director in place of Mr. Hemant Bhargava
(DIN:01922717), who retires by rotation and, being eligible,
offers himself for re-appointment.
Special Business:
5.
Issuance of Equity Shares to Tata Sons Private Limited,
Promoter of the Company, on a Preferential Basis
To consider and, if thought fit, to pass the following
resolution as a Special Resolution:-
“RESOLVED that pursuant to the provisions of Sections
23(1)(b), 42, 62(1)(c) and other applicable provisions, if any,
of the Companies Act, 2013 (the “Act”), the Companies
(Prospectus and Allotment of Securities) Rules, 2014, the
Companies (Share Capital and Debentures) Rules, 2014
and other applicable rules made thereunder (including
any statutory modification(s) or re-enactment(s) thereof
for the time being in force) and in accordance with the
Securities and Exchange Board of India (Issue of Capital
and Disclosure Requirements) Regulations, 2018 (the “SEBI
ICDR Regulations”) and the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (the “SEBI Listing Regulations”), as
amended from time to time, the listing agreements
entered into by the Company with BSE Limited and
National Stock Exchange of India Limited (together, the
“Stock Exchanges”) on which the equity shares of the
Company having face value of ₹ 1 each (“Equity Shares”)
are listed, and subject to any other rules, regulations,
guidelines, notifications, circulars and clarifications issued
thereunder from time to time by the Ministry of Corporate
Affairs, the Securities and Exchange Board of India (“SEBI”)
and/or any other competent authorities (hereinafter
referred to as “Applicable Regulatory Authorities”) from
time to time to the extent applicable and the enabling
provisions of the Memorandum of Association and
Articles of Association of the Company, and subject to
such approvals, consents and permissions as may be
necessary or required and subject to such conditions
as may be imposed or prescribed while granting such
approvals, consents and permissions, which the Board of
Directors of the Company (hereinafter referred to as the
“Board”, which term shall be deemed to mean and include
one or more committee(s) constituted by the Board to
exercise its powers including the powers conferred by this
Resolution), is hereby authorised to accept, the consent
and approval of the Members of the Company (“Members”)
be and is hereby accorded to the Board to create, issue,
offer and allot upto 49,05,66,037 Equity Shares at a price
of ₹ 53/- per Equity Share, aggregating to ₹ 2,600 crore
(Rupees Two thousand six hundred crore only), to Tata
Sons Private Limited (“Tata Sons”), the Promoter of the
Company, for cash consideration on a preferential basis
(“Preferential Issue”), and on such terms and conditions as
may be determined by the Board in accordance with the
SEBI ICDR Regulations and other applicable laws.
RESOLVED FURTHER that in terms of the provisions of
Chapter V of the SEBI ICDR Regulations, the relevant date
for determining the floor price for the Preferential Issue
of the Equity Shares is 30th June 2020, being the date
30 days prior to the date of this Annual General Meeting
(“Relevant Date”).
RESOLVED FURTHER that without prejudice to the
generality of the above Resolution, the issue of the Equity
Shares to Tata Sons under the Preferential Issue shall be
subject to the following terms and conditions apart from
others as prescribed under applicable laws:
a)
b)
c)
The Equity Shares to be
issued and allotted
shall be fully paid up and rank pari passu with
the existing Equity Shares of the Company in all
respects (including with respect to dividend and
voting powers) from the date of allotment thereof,
be subject to the requirements of all applicable
laws and shall be subject to the provisions of
the Memorandum of Association and Articles of
Association of the Company.
The Equity Shares to be allotted shall be locked-
in for such period as specified in the provisions of
Chapter V of the SEBI ICDR Regulations and will be
listed on the Stock Exchanges subject to receipt of
necessary regulatory permissions and approvals.
The Equity Shares shall be allotted in dematerialised
form within a period of fifteen (15) days from the
date of passing of the special resolution by the
Members, provided that where the allotment of
469
Future ready for smart choicesNotice
Equity Shares is subject to receipt of any approval or
permission from Applicable Regulatory Authorities,
the allotment shall be completed within a period of
fifteen (15) days from the date of receipt of last of
such approvals or permissions.
RESOLVED FURTHER that the Board be and is hereby
authorized to accept any modification(s) in the terms of
issue of Equity Shares, subject to the provisions of the Act
and the SEBI ICDR Regulations, without being required to
seek any further consent or approval of the Members.
limitation,
arrangements,
including without
RESOLVED FURTHER that for the purpose of giving effect
to this Resolution, the Board be and is hereby authorised
to do all such acts, deeds, matters and things as it may,
in its absolute discretion, deem necessary, desirable
or expedient,
issuing
clarifications, resolving all questions of doubt, effecting
any modifications or changes to the foregoing (including
modification to the terms of the issue), entering into
contracts,
agreements, documents
(including for appointment of agencies, intermediaries
and advisors for the Preferential Issue) and to authorize
all such persons as may be necessary, in connection
therewith and incidental thereto as the Board in its
absolute discretion shall deem fit without being required
to seek any fresh approval of the Members and to settle
all questions, difficulties or doubts that may arise in regard
to the offer, issue and allotment of the Equity Shares and
listing thereof with the Stock Exchanges as appropriate
and utilisation of proceeds of the Preferential Issue, take
all other steps which may be incidental, consequential,
relevant or ancillary in this connection and to effect any
modification to the foregoing and the decision of the
Board shall be final and conclusive.
RESOLVED FURTHER that the Board be and is hereby
authorized to delegate all or any of the powers herein
conferred, as it may deem fit in its absolute direction, to
any committee of the Board or any one or more Director(s)/
Company Secretary/any Officer(s) of the Company to give
effect to the aforesaid resolution.”
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
470
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, (Firm
Registration No. 000212), who are appointed as Cost
Auditors to conduct the audit of cost records maintained
by the Company for the financial year 2020-21.
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.
In view of the global outbreak of COVID-19, the Ministry
of Corporate Affairs (MCA), Government of India, has vide
its General Circular No. 14/ 2020 dated 8th April 2020,
General Circular No. 17/ 2020 dated 13th April 2020, in
relation to “Clarification on passing of ordinary and special
resolutions by companies under the Companies Act, 2013 and
the rules made thereunder on account of the threat posed
by Covid-19” and General Circular No. 20/ 2020 dated 5th
May 2020, in relation to “Clarification on holding of annual
general meeting (AGM) through video conferencing (VC) or
other audio visual means (OAVM)” (collectively referred to
as “MCA Circulars”) and Securities and Exchange Board of
India vide Circular No. SEBI/HO/CFD/CMD1/CIR/P/2020/79
dated 12th May 2020, in relation to “Additional relaxation
in relation to compliance with certain provisions of
SEBI (Listing Obligations and Disclosure Requirements)
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20
Regulations 2015 - Covid-19 pandemic” (“SEBI Circular”) have
permitted the holding of the Annual General Meeting
(“AGM”) through Video Conferencing (“VC”)/Other Audio
Visual Means (“OAVM”), without the physical presence
of the Members at a common venue. In compliance
with the applicable provisions of the Companies Act,
2013 (the “Act”) (including any statutory modification
or re-enactment thereof for the time being in force)
read with Rule 20 of the Companies (Management and
Administration) Rules, 2014 (the “Rules”), as amended from
time to time, read with the MCA Circulars, SEBI Circular and
pursuant to Regulation 44 of the SEBI (Listing Obligations
& Disclosure Requirements) Regulations, 2015 (“Listing
Regulations”) the Annual General Meeting (“AGM”) of the
Company is scheduled to be held on Thursday, 30th July
2020, at 3 p.m. (IST) through VC/OAVM and the voting
for items to be transacted in the Notice to this AGM only
through remote electronic voting process (“e-Voting”).
As per the provisions of Clause 3.A.II. of the General
Circular No. 20/ 2020 dated 5th May 2020, the matters of
Special Business as appearing at Item Nos. 5 to 7 of the
accompanying Notice, are considered to be unavoidable
by the Board and hence, form part of this Notice.
The relative Explanatory Statement pursuant to Section
102 of the Act, in regard to the business as set out in Item
Nos. 5 to 7 above and the relevant details of the Director
seeking re-appointment as set out in Item No.4 above as
required under Regulation 26(4) and 36(3) of the Listing
Regulations and under Secretarial Standard - 2 on General
Meetings issued by The Institute of Company Secretaries
of India, is annexed hereto as Annexure - A .
PURSUANT TO THE PROVISIONS OF THE ACT, A
MEMBER ENTITLED TO ATTEND AND VOTE AT THE
AGM IS ENTITLED TO APPOINT A PROXY TO ATTEND
AND VOTE ON HIS/HER BEHALF AND THE PROXY
NEED NOT BE A MEMBER OF THE COMPANY. SINCE
THIS AGM IS BEING HELD PURSUANT TO THE MCA
CIRCULARS THROUGH VC/OAVM, THE REQUIREMENT
OF PHYSICAL ATTENDANCE OF MEMBERS HAS
BEEN DISPENSED WITH. ACCORDINGLY, IN TERMS
OF THE MCA CIRCULARS AND THE SEBI CIRCULAR,
THE FACILITY FOR APPOINTMENT OF PROXIES BY
THE MEMBERS WILL NOT BE AVAILABLE FOR THIS
AGM AND HENCE, THE PROXY FORM, ATTENDANCE
SLIP AND ROUTE MAP OF AGM ARE NOT ANNEXED
TO THIS NOTICE.
2.
3.
4.
5.
Investors, who are Members of
Institutional
the
Company, are encouraged to attend and vote at the
AGM through VC/OAVM facility. Corporate Members
intending to appoint their authorized representatives
to attend the AGM through VC or OAVM and to vote
thereat through remote e-Voting are requested to send a
certified copy of the Board Resolution to the Scrutinizer
with
by
and
a
investorcomplaints@tatapower.com.
cs@parikhassociates.com
evoting@nsdl.co.in
copy marked
e-mail
to
at
6.
7.
8.
9.
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 attendance of the Members attending the AGM
through VC/OAVM will be counted for the purpose of
reckoning the quorum under Section 103 of the Act.
The Members can join the AGM in the VC/OAVM mode
30 minutes before and 15 minutes after the scheduled
time of the commencement of the AGM by following the
procedure mentioned in the Notice. The Members will
be able to view the proceedings on National Securities
Depository Limited’s
(“NSDL”) e-Voting website at
www.evoting.nsdl.com. The facility of participation at the
AGM through VC/OAVM will be made available to atleast
1,000 Members on a first come first served basis as per the
MCA Circulars.
Further, due to non-availability of postal and courier services,
on account of the threat posed by COVID-19 and in terms
of the MCA Circulars and the SEBI Circular, the Company is
sending this AGM Notice along with the Annual Report for
FY20 in electronic form only to those Members whose e-mail
addresses are registered with the Company/Depositories.
The Notice convening the AGM and the Annual Report for
FY20 has been uploaded on the website of the Company at
www.tatapower.com and may also be accessed from the
relevant section of the websites of the Stock Exchanges i.e.
BSE Limited (“BSE”) and National Stock Exchange of India
Limited (“NSE”) at www.bseindia.com and www.nseindia.
com, respectively. The AGM Notice is also available on the
website of NSDL at www.evoting.nsdl.com.
10.
The Register of Members and Share Transfer Books
of the Company will remain closed from Thursday,
16th July 2020 to Thursday, 30th July 2020, both days
inclusive. If the dividend, as recommended by the Board
of Directors, is approved at the AGM, payment of such
dividend, subject to deduction of tax at source (“TDS”), will
be made on or after Monday, 3rd August 2020, as under:
i)
To all Beneficial Owners in respect of shares held
in electronic form as per the data as may be made
available by NSDL and Central Depository Services
(India) Limited (“CDSL”) (both collectively referred
to as “Depositories”) as of the close of business
hours on Wednesday, 15th July 2020;
471
Future ready for smart choicesNotice ii)
To all Members in respect of shares held in physical
form after giving effect to valid transmission and
transposition requests lodged with the Company on
or before the close of business hours on Wednesday,
15th July 2020.
Pursuant to the Finance Act, 2020, dividend income will
be taxable in the hands of the Shareholders w.e.f. 1st April
2020 and the Company is required to deduct TDS from
dividend paid to the Members at rates prescribed in the
Income-tax Act, 1961 (the “IT Act”). In general, to enable
compliance with TDS requirements, Members were
requested, vide the Company’s e-mail communication
dated 11th June 2020, to complete and/or update
their Residential Status, Permanent Account Number
(“PAN”), Category as per the IT Act with their Depository
Participants (“DPs”) or in case shares are held in physical
form, with the Company by sending documents through
e-mail by 25th June 2020.
Further, in order to receive the dividend in a timely manner,
Members holding shares in physical form, who have
not updated their mandate for receiving the dividends
directly in their bank accounts through Electronic Clearing
Service (“ECS”) or any other means, are requested to send
hard copies of the following details/documents to the
Company’s Registrar and Share Transfer Agent (“RTA”),
viz. TSR Darashaw Consultants Private Limited (“TSR”),
(formerly known as TSR Darashaw Limited) at 6-10, Haji
Moosa Patrawala Industrial Estate (Near Famous Studio),
20, Dr. E. Moses Road, Mahalaxmi, Mumbai 400 011, latest
by 15th July 2020:
a)
a signed request letter mentioning your Name, Folio
Number, complete address and following details
relating to Bank Account in which the dividend is
to be received:
13. 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 to their DP regarding bank
accounts in which they wish to receive dividend.
14.
For Members who are unable to receive the dividend
directly in their bank accounts through ECS or any other
means, due to non-registration of the Electronic Bank
Mandate, the Company shall dispatch the dividend
warrant/Bankers’ cheque/demand draft to such Members
upon normalisation of the postal services.
15. As per Regulation 40 of the Listing Regulations, as
amended, securities of
listed companies can be
transferred only in dematerialised form with effect from
1st April 2019, except in case of request received for
transmission or transposition of securities. In view of
this and to eliminate all risks associated with physical
shares and for ease of portfolio management, Members
holding shares in physical form are requested to consider
converting their holdings to dematerialised form.
to
16. Members are requested to intimate changes, if any,
pertaining
their name, postal address, e-mail
address, telephone/mobile numbers, PAN, registering
of nomination and power of attorney, Bank Mandate
details such as name of the bank and branch details, bank
account number, MICR code, IFSC code, etc., to their DP in
case the shares are held in electronic form and to the RTA
in case the shares are held in physical form.
i)
ii)
Name
Bank Account type;
and
Branch
of
Bank
and
17.
Bank Account Number and type allotted
by your bank after implementation of Core
Banking Solutions; and
iii)
11 digit IFSC Code.
To prevent fraudulent transactions, Members are advised
to exercise due diligence and notify the Company of any
change in address or demise of any Member as soon as
possible. Members are also advised to not leave their
demat account(s) dormant for long. Periodic statement of
holdings should be obtained from the concerned DP and
holdings should be verified from time to time.
b)
c)
d)
Self-attested copy of cancelled cheque bearing the
name of the Member or first holder, in case shares
are held jointly;
Self-attested copy of the PAN Card; and
Self-attested copy of any document (such as
Aadhaar Card, Driving License, Election Identity
Card, Passport) in support of the address of the
Member as registered with the Company.
18. 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 form to their
DP in case the shares are held in electronic form and to
the RTA in case the shares are held in physical form.
11.
12.
472
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20 19.
25.
form
The format of the Register of Members prescribed by
the MCA under the Act, requires the Company/RTA
to record additional details of Members,
including
their PAN details, e-mail address, bank details for
payment of dividend etc. A
for capturing
additional details is available on the Company’s website
www.tatapower.com (under 'Investor Relations' section).
Members holding shares in physical form are requested to
submit the filled in form to the Company or RTA in physical
mode, after restoration of normalcy or in electronic
mode to csg-unit@tsrdarashaw.com, 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 RTA.
20. Members holding shares in physical form, in identical order
of names, in more than one folio, are requested to send to
the Company or RTA, the details of such folios together
with the share certificates for consolidating their holdings
in one folio. A consolidated share certificate will be issued
to such Members after making requisite changes.
21. 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. Members, whose unclaimed dividends/shares
have been transferred to IEPF, may claim the same by
making an application to the IEPF Authority in e-Form/
web form No.
IEPF-5 available on www.iepf.gov.in.
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.
22. Members desiring inspection of statutory registers during
the AGM may send their request in writing to the Company
at investorcomplaints@tatapower.com.
23. Members who wish to inspect the relevant documents
referred to
in the Notice can send an e-mail to
investorcomplaints@tatapower.com up to the date of the
AGM.
24.
This AGM Notice is being sent by e-mail only to those
eligible Members who have already registered their e-mail
address with the Depositories/the DP/the Company’s
RTA/the Company or who will register their e-mail address
with TSR, on or before 5:00 p.m. (IST) on Wednesday,
22nd July 2020.
To facilitate Members to receive this Notice electronically
and cast their vote electronically, the Company has made
special arrangement with TSR for registration of e-mail
addresses in terms of the MCA Circulars. Eligible Members
who have not submitted their e-mail address to TSR, are
required to provide their e-mail address to the RTA, on
or before 5:00 p.m. (IST) on Wednesday, 22nd July 2020
pursuant to which, any Member may receive on the e-mail
address provided by the Member the Annual Report for
FY20 and the procedure for remote e-Voting along with
the login ID and password for remote e-Voting. The
process for registration of e-mail address is as under:
I.
For Members who hold shares in Electronic form:
Visit the link https://green.tsrdarashaw.com/
a)
green/events/login/po
b)
Enter the DP ID & Client ID, PAN details
and captcha code.
c)
System will verify the Client ID and PAN details.
d)
e)
f)
successful verification,
system will
On
allow you to enter your e-mail address and
mobile number.
Enter your e-mail address and mobile number.
The system will then confirm the e-mail
address for the limited purpose of service of
the Annual Report for FY20.
II.
For Members who hold shares in Physical form:
Visit the link https://green.tsrdarashaw.com/
a)
green/events/login/po
b)
c)
d)
e)
Enter the physical Folio Number, PAN details
and captcha code.
In the event the PAN details are not available
on record, Member to enter one of the share
certificate’s number.
System will verify the Folio Number and PAN
details or the share certificate number.
successful verification,
On
system will
allow you to enter your e-mail address and
mobile number.
f)
Enter your e-mail address and mobile number.
g)
If PAN details are not available, the system will
prompt the Member to upload a self-attested
copy of the PAN card.
473
Future ready for smart choicesNotice h)
The system will then confirm the e-mail
address for the limited purpose of service of
the Annual Report for FY20.
26. After successful submission of the e-mail address, NSDL
will e-mail a copy of the Annual Report for FY20 along
with the remote e-Voting user ID and password, within
48 hours of successful registration of the e-mail address
by the Member. In case of any queries, Members may
write to csg-unit@tsrdarashaw.com or evoting@nsdl.co.in.
IV. Members of the Company holding shares either
in physical form or electronic form as on the
cut-off date of Thursday, 23rd July 2020, may
cast their vote by remote e-Voting. The remote
e-Voting period commences on Monday,
27th July 2020 at 9:00 a.m. (IST) and ends on
Wednesday, 29th July 2020 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.
For permanent registration of their e-mail address,
Members are requested to register their e-mail address,
in respect of electronic holdings, with their concerned DP
and in respect of physical holdings, with the RTA.
V.
Those Members who have already registered their e-mail
addresses are requested to keep their e-mail addresses
validated with their DP/TSR to enable servicing of notices/
documents/Annual Reports and other communications
electronically to their e-mail address in future.
Process and manner
e-Voting is, as under:-
I.
for Members opting
for
In compliance with the provisions of Sections 108
and other applicable provisions of the Act, read
with Rule 20 of the Rules and Regulation 44 of the
Listing Regulations, the Company is offering only
e-Voting facility to all the Members of the Company
and the business will be transacted only through
the electronic voting system. The Company has
engaged the services of NSDL for facilitating
e-Voting to enable the Members to cast their votes
electronically as well as for e-Voting during the
AGM. 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.
II. Members are provided with the facility for voting
through Voting system during the VC/OAVM
proceedings at the AGM and Members participating
at the AGM, who have not already cast their vote by
remote e-Voting, are eligible to exercise their right
to vote at the AGM.
III. Members who have already cast their vote by
remote e-Voting prior to the AGM will also be
eligible to participate at the AGM but shall not be
entitled to cast their vote again on such resolution(s)
for which the Member has already cast the vote
through remote e-Voting.
The instructions for Members attending the AGM
through VC/OAVM are as under:
A.
through
The Members will be provided with
facility to attend the AGM through
a
VC/OAVM
the NSDL e-Voting
system and they may access the same at
https://www.evoting.nsdl.com under
the
Shareholders/Members login by using the
remote e-Voting credentials, where the EVEN
of the Company will be displayed. On clicking
this link, the Members will be able to attend
and participate in the proceedings of the
AGM through a live webcast of the meeting
and submit votes on announcement by the
Chairman. Please note that the Members
who do not have the User ID and Password
for e-Voting or have forgotten the User ID
and Password may retrieve the same by
following the remote e-Voting instructions
mentioned in the Notice to avoid last minute
rush. Further, Members may also use the OTP
based login for logging into the e-Voting
system of NSDL.
B. Members may join the AGM through
laptops, smartphones, tablets and iPads
for better experience. Further, Members
will be required to use Internet with a
good speed to avoid any disturbance
during the Meeting. Members will need
the
latest version of Chrome, Safari,
Internet Explorer 11, MS Edge or Firefox.
Please note that participants connecting
from mobile devices or
tablets or
through laptops connecting via mobile
hotspot may experience Audio/Video
loss due to fluctuation in their respective
network. It is, therefore, recommended
to use stable Wi-Fi or LAN connection to
mitigate any glitches.
C. Members are encouraged to submit their
questions in advance with regard to the
27.
28.
29.
474
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20 financial statements or any other matter to
be placed at the AGM, from their registered
e-mail address, mentioning their name, DP
ID and Client ID number/folio number and
mobile number, to reach the Company’s e-mail
address at investorcomplaints@tatapower.com
before 3.00 p.m. (IST) on Monday, 27th July
2020. Queries that remain unanswered at
the AGM will be appropriately responded
by the Company at the earliest post the
conclusion of the AGM.
D. Members who would like to express their
views/ask questions as a Speaker at the AGM
may pre-register themselves by sending a
request from their registered e-mail address
mentioning their names, DP ID and Client ID/
folio number, PAN and mobile number to
investorcomplaints@tatapower.com between
Friday, 24th July 2020 (9:00 a.m. IST) and
Monday, 27th July 2020 (5:00 p.m. IST). Only
those Members who have pre-registered
themselves as speakers will be allowed to
express their views/ask questions during the
AGM. The Company reserves the right to
restrict the number of speakers depending
on the availability of time for the AGM.
E. Members who need assistance before
or during the AGM, can contact NSDL
on evoting@nsdl.co.in or call on toll free
no.:1800-222-990 or contact Mr. Amit Vishal,
Senior Manager - NSDL at amitv@nsdl.co.in or
call on +91 22 24994360/+91 9920264780.
VI.
The
instructions
e-Voting are as under:
for
Members
for
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
https://www.evoting.nsdl.com/
How to Log-in to NSDL e-Voting website?
A.
B.
Visit the e-Voting website of NSDL. Open
web browser by
following:
https://www.evoting.nsdl.com/ either on a
Personal Computer or on a mobile.
typing
the
Once the home page of e-Voting system is
launched, click on the icon 'Login' which is
available under ‘Shareholders’ section.
C.
A new screen will open. You will have to enter
your User ID, your Password and a Verification
Code as shown on the screen.
i.e.
IDEAS, you can
Alternatively, if you are registered for NSDL
e-services
log-in at
https://eservices.nsdl.com/ with your existing
IDEAS 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:
Manner of
Your User ID is:
holding shares i.e.
Demat (NSDL or
CDSL) or Physical
i) For Members who
8 Character DP
hold shares in demat
ID followed by 8
account with NSDL.
Digit Client ID
For example if your
DP ID is IN300***
and Client ID is
12****** then
your user ID is
IN300***12******
ii) For Members who
16
hold shares in demat
Digit Beneficiary ID
account with CDSL.
For example if your
Beneficiary ID is
12**************
then your user ID is
12**************
iii) For Members
EVEN Number
holding shares
followed by Folio
in Physical Form.
Number registered
with the Company.
For example if
Folio Number is
001*** and EVEN is
101456 then user ID
is 101456001***
475
Future ready for smart choicesNotice
E.
Your password details are given below:
i)
If you are already
for
e-Voting, then you can use your existing
password to login and cast your vote.
registered
ii)
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 compel you to
change your password.
iii)
How to retrieve your ‘initial password’?
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 contains your ‘User ID’ and your
‘initial password’.
F.
If you are unable to retrieve or have not
received the
'initial password' or have
forgotten your password:
i)
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.
ii)
iii)
you
Reset
are holding
'Physical User
Password?'
in
(If
shares
physical mode) option available on
www.evoting.nsdl.com.
still unable
to get
If you are
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.
After entering your password, tick on Agree
to
'Terms and Conditions' by selecting
on the check box.
476
H.
Now, you will have to click on 'Login' button.
I.
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.
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.
B.
C.
D.
E.
F.
G.
H.
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.
Upon confirmation, the message 'Vote
cast successfully' will be displayed.
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.
VII.
The instructions for Members for e-Voting during
the proceedings of the AGM are, as under:
A.
The procedure for remote e-Voting during the
AGM is same as the instructions mentioned
above for remote e-Voting since the Meeting
is being held through VC/OAVM.
B.
Only those Members, who will be present
in the AGM through VC/OAVM facility and
have not cast their vote on the Resolutions
through remote e-Voting and are otherwise
not barred from doing so, shall be eligible to
vote through e-Voting system in the AGM.
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20
XII.
The Chairman shall, at the AGM, at the end of
discussion on the resolutions on which voting is
to be held, allow voting, by use of remote e-Voting
system for all those Members who are present
during the AGM through VC/OAVM but have not cast
their votes by availing the remote e-Voting facility.
The remote e-Voting module during the AGM shall
be disabled by NSDL for voting 15 minutes after the
conclusion of the Meeting.
XIII. The Scrutinizer shall, after the conclusion of voting
at the AGM, first count the votes cast during
the AGM and, thereafter, unblock the votes cast
through remote e-Voting and shall make, not later
than 48 hours 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.
immediately after
XIV. 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
www.evoting.nsdl.com,
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 and NSE and be made available on their
respective websites viz. www.bseindia.com and
www.nseindia.com.
By Order of the Board of Directors,
For The Tata Power Company Limited
H. M. Mistry
Company Secretary
FCS No.: 3606
Mumbai, 2nd July 2020
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
(i.e. other
General Guidelines for Members
Institutional Members
than
i)
individuals, HUF, NRI, etc.) are required to send
scanned copy (PDF/JPG format) of the relevant
Board Resolution/Authority 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.
ii)
iii)
iv)
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
the 'Forgot User Details/Password?' or 'Physical
User Reset Password?' option available on
www.evoting.nsdl.com to reset the password.
In case of any queries, you may refer the
Frequently Asked Questions
for
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.
(FAQs)
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).
VIII. 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
Thursday, 23rd July 2020.
IX.
X.
XI.
Any person who acquires shares of the Company
and becomes a Member of the Company after
dispatch of the Notice and holding shares as of the
cut-off date i.e. Thursday, 23rd July 2020, may obtain
the login ID and password by sending a request at
evoting@nsdl.co.in or the Company/TSR.
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.
The Board of Directors has appointed Mr. P. N. Parikh
(FCS 327) or failing him, Mr. Mitesh Dhabliwala
(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.
477
Future ready for smart choicesNotice 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 July 2020:
Item No.5: In accordance with Sections 23(1)(b), 42 and
62(1)(c) and other applicable provisions of the Companies
Act, 2013 (the “Act”) and the Companies (Prospectus and
Allotment of Securities) Rules, 2014, the Companies (Share
Capital and Debentures) Rules, 2014 and other applicable rules
made thereunder (including any statutory modification(s)
or re-enactment(s) thereof for the time being in force) and in
accordance with the Securities and Exchange Board of India
(Issue of Capital and Disclosure Requirements) Regulations, 2018
(the “SEBI ICDR Regulations”) and the Securities and Exchange
Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (the “Listing Regulations”), as amended from
time to time, approval of shareholders of the Company by way
of special resolution is required to issue securities by way of
private placement on a preferential basis to Tata Sons Private
Limited (“Tata Sons”).
The Company is working on a long-term strategic plan focused
on reducing debt thereby strengthening the balance sheet and
improve its overall return metrics. This long-term plan involves:
for the Company to participate in emerging opportunities in
the power sector.
The details in relation to the Preferential Issue as required under
the SEBI ICDR Regulations and the Act read with the rules issued
thereunder, are set forth below:
i)
Particulars of the Preferential Issue including date of
passing of Board resolution
The Board of Directors at its meeting held on 2nd July
2020 had, subject to the approval of the Members and
such other approvals as may be required, approved the
issuance of up to 49,05,66,037 Equity Shares at a price of ₹
53 per Equity Share, aggregating to ₹ 2,600 crore (Rupees
Two thousand six hundred crore only) to Tata Sons, for
cash consideration, on a preferential basis.
ii)
Kinds of securities offered and the price at which
security is being offered
Up to 49,05,66,037 Equity Shares of the Company, at a
price of ₹ 53 (including a premium of ₹ 52) per Equity Share
aggregating up to ₹ 2,600 crore (Rupees Two thousand six
hundred crore only), such price being not less than the
minimum price as on the Relevant Date determined in
accordance with the provisions of Chapter V of the SEBI
ICDR Regulations.
iii) Objects of the Preferential Issue and aggregate
Divestment of non-core and certain overseas investments;
amount proposed to be raised
a)
b)
Restructuring of some of its businesses to unlock value and
simplify the structure of the Company and its subsidiaries.
Consequent to this, the Company has decided to pursue
setting up of an Investment Infrastructure Trust (InvIT) for
its renewable business;
c)
Raising of equity to reduce unsustainable debt in Tata
Power and/or its subsidiaries.
In accordance with the above plan, the Board, pursuant to its
resolution dated 2nd July 2020, has approved the proposed
Preferential Issue to Tata Sons at a price of ₹ 53 per Equity Share
(“Issue Price”), and consequently, recommends the resolution
as set out above to be passed by the Members through a
special resolution. The floor price for the issue of the shares on
a preferential basis under the applicable provisions of the SEBI
ICDR Regulations is ₹ 43.73 per Equity Share.
Issue to
its Promoter was considered
The Preferential
appropriate to minimise the dilution
impact and for a
successful and speedy execution in order to immediately help
the Company to reduce its debt. Implementation of the overall
plan which includes equity raise, divestment and business
restructuring plans will strengthen the balance sheet of the
Company, which in turn is expected to provide a strong platform
478
The Company proposes to raise an amount aggregating
up to ₹ 2,600 crore through the Preferential Issue. The
proceeds of the Preferential Issue will be utilized for
prepayment of borrowings of the Company and/or its
subsidiaries, meeting future funding requirements and
other general corporate purposes of the Company and
its subsidiaries.
iv)
Relevant Date
In terms of the provisions of Chapter V of the SEBI
ICDR Regulations, relevant date for determining the
floor price for the Preferential Issue is 30th June 2020,
being the date 30 days prior to the date of this Annual
General Meeting (AGM).
v)
Basis on which the price has been arrived at and
justification for the price (including premium, if any)
The Equity Shares of the Company are listed on BSE
Limited (“BSE”) and National Stock Exchange of India
Limited (“NSE”) (together referred to as the “Stock
Exchanges”). The Equity Shares are frequently traded in
terms of the SEBI ICDR Regulations and NSE, being the
Stock Exchange with higher trading volumes for the said
period, has been considered for determining the floor
price in accordance with the SEBI ICDR Regulations.
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20
In terms of the applicable provisions of the SEBI ICDR
Regulations, the floor price at which the Equity Shares
shall be issued is ₹ 43.73 per Equity Share, being higher of
the following:
x)
a)
b)
Average of the weekly high and low of the volume
weighted average price of the Equity Shares of the
Company quoted on NSE, during the twenty-six (26)
weeks preceding the Relevant Date, i.e. ₹ 43.28 per
Equity Share; or
Average of the weekly high and low of the volume
weighted average price of the Equity Shares of
the Company quoted on NSE, during the two (2)
weeks preceding the Relevant Date i.e. ₹ 43.73
per Equity Share.
The pricing of the Equity Shares to be allotted on
preferential basis is ₹ 53 per Equity Share which is
not
in the
manner set out above.
lower than the floor price determined
Intent of the Promoters, directors or key managerial
personnel of the Company to subscribe to the
Preferential
Issue; contribution being made by
the Promoters or Directors either as part of the
Preferential
in furtherance
of the objects
Issue or separately
The Equity Shares shall be issued to Tata Sons, the Promoter
of the Company. Tata Sons has indicated its intention to
subscribe to the Preferential Issue. None of the Directors
or Key Managerial Personnel of the Company intends
to subscribe to any of the Equity Shares proposed to be
issued under the Preferential Issue or otherwise contribute
to the Preferential Issue or separately in furtherance of the
objects specified herein above.
vi)
vii) Time frame within which the Preferential Issue
shall be completed
As required under the SEBI ICDR Regulations, the Equity
Shares shall be allotted by the Company within a period
of 15 days from the date of passing of this Resolution,
provided that where the allotment of the proposed Equity
Shares is pending on account of receipt of any approval
or permission from any regulatory or statutory authority,
the allotment shall be completed within a period of 15
days from the date of receipt of last of such approvals
or permissions.
Identity of the natural persons who are the ultimate
beneficial owners of the Equity Shares proposed to be
allotted and/or who ultimately control the proposed
allottees, the percentage of post Preferential Issue
capital that may be held by them and change in
control, if any, in the Company consequent to the
Preferential Issue
The Equity Shares are proposed to be allotted to Tata Sons,
Promoter of the Company. Details of shareholding of Tata
Sons in the Company, prior to and after the proposed
Preferential Issue, are as under:
Pre-Preferential Issue
As on 30th June 2020
Post-Allotment of Equity
Shares pursuant to the
Preferential Issue
No. of Equity
Shares held
Percentage
held
No. of Equity
Shares held
Percentage
held
95,39,46,984
35.27
1,44,45,13,021
45.21
The majority of the equity shares of Tata Sons are held by
certain public charitable trusts (“Tata Trusts”) and as such,
there is no identifiable beneficiary, other than the public
at large. The names of the current Trustees of Tata Trusts
are: Mr. R. N. Tata, Mr. V. Srinivasan, Mr. V. Singh, Mr. R. K.
Krishna Kumar, Mr. J. N. Tata, Mr. N. N. Tata, Mr. Jehangir H.
C. Jehangir, Mr. J. N. Mistry and Mr. Pramit Jhaveri. The said
details of natural persons are given only for the purpose to
know natural persons. Tata Sons holds beneficial interest
in the Company to the extent of its shareholding and the
Equity Shares to be allotted.
There shall be no change in control of the Company
pursuant to the aforesaid Preferential Issue. However, the
percentage of shareholding and voting rights exercised
by Tata Sons, the Promoter of the Company, will change in
accordance with the change in the shareholding pattern
as set in the Annexure - B.
xi)
Lock-in Period
The Equity Shares shall be locked-in for such period as
specified under Regulations 167 and 168 of the SEBI
ICDR Regulations.
The entire pre-Preferential Issue shareholding of Tata
Sons shall be locked-in from the Relevant Date up to
a period of six months from the date of the trading
approval as specified under Regulation 167(6) of the SEBI
ICDR Regulations.
viii) Principal terms of assets charged as securities
xii) Undertakings
Not applicable.
ix)
Shareholding pattern of the Company before and
after the Preferential Issue
Please refer Annexure - B to this Notice for details.
a)
None of the Company, its Directors or Promoter have
been declared as wilful defaulter as defined under
the SEBI ICDR Regulations. None of its Directors is
a fugitive economic offender as defined under the
SEBI ICDR Regulations.
479
Future ready for smart choicesNotice
b)
c)
The Company is eligible to make the Preferential
Issue to its Promoter under Chapter V of the SEBI
ICDR Regulations.
As the Equity Shares have been listed for a period
of more than twenty-six weeks as on the Relevant
Date, the provisions of Regulation 164(3) of SEBI
ICDR Regulations governing re-computation of the
price of shares shall not be applicable.
xiii) Auditors’ Certificate
The certificate from S R B C & CO LLP, Chartered
Accountants, being the Statutory Auditors of the
Company certifying that the Preferential Issue is being
made in accordance with the requirements contained
in the SEBI ICDR Regulations shall be made available for
inspection by the Members during the meeting.
xiv) Other disclosures
a)
b)
c)
During the period from 1st April 2020 until the date
of Notice of this AGM, the Company has not made
any preferential issue of Equity Shares.
Report of the registered valuer is not required under
the provisions of second proviso to Rule 13(1) of the
Companies (Share Capital and Debentures) Rules,
2014 for the proposed Preferential Issue.
Neither Tata Sons nor any member of the promoter
group of the Company have sold or transferred any
Equity Shares during the six months preceding the
Relevant Date.
In accordance with the provisions of Sections 23, 42 and 62 of the
Act read with applicable rules thereto and relevant provisions of
the SEBI ICDR Regulations, approval of the Members for issue
and allotment of the said Equity Shares to Tata Sons is being
sought by way of a special resolution as set out in the said
item of the Notice. Issue of the Equity Shares pursuant to the
Preferential Issue would be within the Authorised Share Capital
of the Company.
The Board of Directors believes that the proposed Preferential
Issue is in the best interest of the Company and its Members
and, therefore, recommends the Special Resolution at Item
No.5 of the accompanying Notice for approval by the Members
of the Company.
None of the Directors, Key Managerial Personnel (KMP) or their
respective relatives are, in any way, concerned or interested,
financially or otherwise, except as shareholders in general in the
said resolution. Further, Mr. N. Chandrasekaran and Mr. Saurabh
Agrawal, common directors on the Board of the Company and
Tata Sons (Promoter of the Company), though not interested in
accordance with the Act, may be deemed to be interested as a
good governance practice.
480
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 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 are 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
have approved the re-appointment of M/s. Sanjay Gupta and
Associates (SGA) (Firm Registration No.000212) as the Cost
Auditors of the Company to conduct audit of cost records
maintained by the Company for FY21, at a remuneration of
₹ 6,50,000 (Rupees Six lakh fifty thousand) plus applicable taxes,
travel 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 are concerned or interested in the Resolution at Item
No.7 of the accompanying Notice.
By Order of the Board of Directors,
For The Tata Power Company Limited
H. M. Mistry
Company Secretary
FCS No.: 3606
Mumbai, 2nd July 2020
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
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20
Details of the Director seeking re-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)
Annexure - A
Name of Director
DIN
Date of Birth (Age)
Date of Appointment
Expertise in specific
functional areas
Mr. Hemant Bhargava
01922717
20th July 1959 (60 years)
24th August 2017
Mr. Hemant Bhargava retired as the Managing Director of Life Insurance Corporation of India effective
1st August 2019.
A Master in Economics, Mr. Bhargava joined LIC in 1981 and has handled diverse portfolios across
functions in India and internationally, including Marketing & Alternative Channels of distribution, Human
Resource, Finance, Pension & Group Schemes, Estate Management & Office Services operations and
Information Technology. As head of two of LIC's biggest zones among the eight, he was instrumental in
increasing insurance penetration in fifteen states of India.
Mr. Bhargava, with his expertise in business modeling and execution, had successfully launched a number
of new projects in LIC, which includes designing and setting up the Micro Insurance vertical which was
LIC's first comprehensive enterprise-wide initiative in financial inclusion space. LIC's foray into credit
card as joint venture in collaboration with banking partners, founding LIC Cards Services Limited and
launch of 'LIC Card' in 2009 was also headed by Mr. Bhargava. The 'Indian Business Group' in Mauritius for
promoting the business interests of companies of Indian origin, with the High Commissioner of India as
the Patron, was founded by Mr. Bhargava as head of LIC's Mauritius operations. He also played key role in
setting up newly formed SBU-International Operations to manage LIC's operation in about 14 countries
and laid structural design to form a composite insurance company in the Kingdom of Saudi Arabia.
Mr. Bhargava has been instrumental in shaping strategies of corporate India while serving on the Boards
of many Indian companies.
He was also the Ex-officio Chairman and Trustee of Life Insurance Corporation of India Golden Jubilee
Foundation, Deputy President of Insurance Institute of India and Member of the Governing Board of
National Insurance Academy, Pune
Mr. Bhargava is an Alumni of Jamnalal Bajaj Institute of Management. He has studied Strategic
Management at ISB, Hyderabad.
M.A. in Economics
• Voltas Limited
•
•
Larsen and Toubro Limited
ITC Limited
Audit Committee
Member
•
ITC Limited
CSR & Sustainability Committee
Member
•
N.A.
3
ITC Limited
Nil
Nil
Qualifications
Directorships held
in other Public
companies (excluding
foreign companies)
Committee
position held in other
companies
Remuneration
No. of meetings of
the Board attended
during the year
No. of shares held:
(a) Own
(b) For other persons
on a beneficial
basis
For other details such as relationship with other Directors and KMP in respect of Mr. Hemant Bhargava, please refer to the Report
on Corporate Governance, which is a part of this Annual Report.
481
Future ready for smart choicesNotice
Pre and Post Preferential Issue Shareholding Pattern of the Company
Annexure - B
Sl.
No.
Category of Shareholder(s)
Pre-Preferential Allotment
Holding/Voting Rights (as on
30th June 2020)
Post Allotment of
Equity Shares
Equity Shares
Equity Shares
No.
%
No.
%
(A) Promoters & Promoter Group holding (Indian)
Promoter (Body Corporate)
Promoter Group (Body Corporate)
95,39,46,984
5,27,44,544
35.27
1.95
144,45,13,021
5,27,44,544
Total Shareholding of Promoter and Promoter Group (A)
100,66,91,528
37.22
149,72,57,565
i)
ii)
Individual Shareholders holding nominal share capital upto ₹ 2 lakh
Individual Shareholders holding nominal share capital in excess of ₹ 2 lakh
2,36,86,857
(B) Public Shareholding
1 Institutions
(a) Mutual Funds/UTI
(b) Alternate Investment Funds
(c) Foreign Portfolio Investors
(d) Financial Institutions/Banks
(e) Insurance Companies
Sub-Total (B)(1)
2 Central Government/State Government(s)/President of India
Sub-Total (B)(2)
3 Non-Institutions
(a) Individuals
(b) NBFCs registered with RBI
(c) Overseas Depositories (holding DRs) (balancing figure)
(d) Any Other (specify)
i) Bodies Corporates
ii) Clearing Members
iii) Limited Liability Partnership - LLP
iv) HUF
v) Trusts
vi) IEPF Suspense-A/c
vii) Non Resident Individuals
viii) Director or Director's Relatives
ix) OCBs/Foreign Cos
x) OCBs/Foreign Bodies - DR
xi) QIB-Insurance Co. Regd. with IRDA
Sub Total (B)(3)
Total Public Shareholding (B) = (B) (1) + (B)(2) + (B)(3)
Total (A)+(B)
38,56,32,618
1,44,20,591
34,86,27,714
1,82,08,325
40,46,61,108
117,15,50,356
2,56,09,803
2,56,09,803
38,91,05,342
36,54,18,485
1,26,450
4,22,300
11,12,67,731
3,53,38,108
2,37,49,535
9,42,083
93,72,473
25,10,814
80,27,603
2,81,54,307
2,16,262
4,000
3,65,990
25,86,556
14.26
0.53
12.89
0.67
14.96
43.31
0.95
0.95
14.39
13.51
0.88
0.00
0.02
4.11
1.31
0.88
0.03
0.35
0.09
0.30
1.04
0.01
0.00
0.01
0.10
38,56,32,618
1,44,20,591
34,86,27,714
1,82,08,325
40,46,61,108
117,15,50,356
2,56,09,803
2,56,09,803
38,91,05,342
36,54,18,485
2,36,86,857
1,26,450
4,22,300
11,12,67,731
3,53,38,108
2,37,49,535
9,42,083
93,72,473
25,10,814
80,27,603
2,81,54,307
2,16,262
4,000
3,65,990
25,86,556
50,09,21,823
169,80,81,982
18.52
62.78
50,09,21,823
169,80,81,982
270,47,73,510
100.00
319,53,39,547
(C) Shares held by custodians against which DRs are issued (GDR)
-
-
-
Total (A)+(B)+(C)
270,47,73,510
100.00
319,53,39,547
100.00
482
45.21
1.65
46.86
12.07
0.45
10.91
0.57
12.66
36.66
0.80
0.80
12.18
11.44
0.74
0.00
0.01
3.48
1.11
0.74
0.03
0.29
0.08
0.25
0.88
0.01
0.00
0.01
0.08
15.68
53.14
100.00
-
NoticeThe Tata Power Company Limited Integrated Annual Report 2019-20
483
Future ready for smart choicesIndependent Assurance Statement 484
Assurance CertificateThe Tata Power Company Limited Integrated Annual Report 2019-20 Glossary of Abbreviations
Integrated Reporting
CERT
Computer Emergency Response Team
AA
AC
ACC
AI
AIDS
AT&C
ATM
B2B
B2C
B2G
Affirmative Action
Air Conditioner
Apex Compliance Committee
Artificial Intelligence
Acquired immunodeficiency syndrome
Aggregate Technical & Commercial
Automated Teller Machine
Business-to-Business service
Business-to-Consumer
Business-to-government
BCDMP
Business Continuity and
Disaster Management Plan
BCP
BEE
BESS
BEST
BFP
BITS
Business Continuity Planning
Bureau of Energy Efficiency
Battery Energy Storage System
Brihanmumbai Electric Supply and
Transport Undertaking
Boiler Feed Pump
Birla Institute of technology and Sciences
BLDC
Brushless DC Motor
BPL
BPS
BSF
BSI
CBIP
CCRA
CDM
CEI
Below Poverty Line
Business Process Services
Border Security Force
British Standards Institution
Central Board of Irrigation and Power
Central Control Room for Renewable Assets
Clean Development Mechanism
Community Engagement Index
CG
C&I
CIBMS
CKM
CMC
CLTS
CMG
CMS
CMS
CO2
CPCB
CPSU
CRC
CRM
Corporate Governance
Control and Instrumentation
Comprehensive Integrated
Border Management System
Circuit Kilometre
Compliance Monitoring Cell
Community Led Total Sanitation
Connection Management Group
Compliance Management System
Content Marketing Summit
Carbon Dioxide
Central Pollution Control Board
Central Public Sector Undertaking
Customer Relation Centre
Customer Relationship Management
CRMC
Cluster Risk Management Committees
CSA
CSAT
CSR
CW
Control Self-Assessment
Customer Satisfaction
Corporate Social Responsibility
Circulating Water
DISCOMs Distribution Company
DHPC
Dagachhu Hydro Power Corporation
DM
DSM
DT
ECA
ECB
Demineralisation
Demand Side Management
Distribution Transformer
Export Credit Agency
External Commercial Borrowing
CEIIC
Clean Energy International Incubation Centre
e-NACH
Electronic National Automated Clearing House
CEO
CEP
CER
Chief Executive Officer
ENCON
Energy Conservation
Condensate Extraction Pump
Certified Emission Reduction
EPC
EV
Engineering, Procurement and Construction
Electric Vehicle
485
Future ready for smart choicesGlossary of Abbreviations FDA
GHG
GIS
GJ
GMI
GRI
GSS
GW
Fixed Duration Associates
Greenhouse Gas
Gas Insulated Switchgear
Gigajoules
Green Manufacturing Index
Global Reporting Initiative
KPO
KYEC
kWh
LED
LC
LT
Knowledge Process Outsourcing
Know Your Energy Consumption
kilowatt hours
Light Emitting Diode
Letter of Credit
Low Tension
Geo Science Services
MCGM
Municipal Corporation of Greater Mumbai
Gigawatt
MD
Managing Director
HESP
Higher Education Sponsorship Program
MERC
Maharashtra Electricity Regulatory Commission
Head of Department
High Power Committee
Human Resource
Hot Re-heat
High Tension
High Voltage
Industrial Energy Limited
Internal Financial Control
Indian Institutes of Technology
Integrated Management System
Indian rupee
Internet of Things
International Integrated Reporting Council
Internal Rate of Return
Industry Solution Units
Information Technology
ML
Machine Learning
MSETCL
Maharashtra State Electricity Distribution
Company Limited
MSME
Micro, Small and Medium Enterprises
MT
MU
MW
Medium Tension
Million Units
Megawatt
MWh
Megawatt hour
MVA
MYT
Mega Volt Amp
Multi Year Tariff
NABARD
National Bank for Agriculture and
Rural Development
NCR
NDC
NIO
NGO
NOC
National Capital Region
Nationally Determined Contributions
National Institute of Oceanography
Non-Governmental Organization
No Objection Certificate
Itezhi Tezhi Power Corporation
NTPC
National Thermal Power Corporation Limited
International Union for Conservation of Nature
Jhuggi Jhopri
Jaguar Land Rover
Joint Venture
Kaltim Prima Coal
Key Performance Indicator
NVG
ODF
PAT
PDS
National Voluntary Guidelines
Open Defecation Free
Profit After Tax
Public Distribution System
PGWM
Participatory Ground Water Management
PILC
Paper Insulated Lead Sheath Cable
HOD
HPC
HR
HRH
HT
HV
IEL
IFC
IIT
IMS
INR
IoT
IIRC
IRR
ISU
IT
ITPC
IUCN
JJ
JLR
JV
KPC
KPI
486
Glossary of AbbreviationsThe Tata Power Company Limited Integrated Annual Report 2019-20 PMS
PO
Performance Management System
Purchase Order
POSH
Prevention of Sexual Harassment
PM
PPA
PPE
Particulate Matter
Power Purchase Agreement
Personal Protective Equipment
PPGCL
Prayagraj Power Generation Company Limited
PRCI
PTL
PV
R&D
Public Relations Council of India
Powerlinks Transmission Limited
Photovoltaic (Solar)
Research and Development
RAPH
Regenerative Air Pre-heater
RCM
RE
RMC
RMCI
RO
Risk Control Matrix
Renewable Energy
Risk Management Committee
Risk Mitigation Completion Index
Reverse Osmosis
ROCE
Return on Capital Employed
RPL
Recognition for Prior Learning
RSCM
Responsible Supply Chain Management
Right to Food
Systems Applications and Products
RTF
SAP
SASB
SBO
Strategic Business Objectives
SCADA
Supervisory Controlled and
Data Acquisition Center
SC
SE
SED
SEMA
SHG
SHS
Scheduled Caste
Supervisory Trainees
Strategic Engineering Division
Stakeholder Engagement and
Materiality Assessment
Self-Help Groups
Swachhata Hi Seva
SHR
SO2
SLDP
SPCB
SROI
ST
STP
Station Heat Rate
Sulphur Dioxide
Senior Leaders' Development Program
State Pollution Control Boards
Social Return on Investment
Scheduled Tribes
Sewage Treatment Plant
TCOC
Tata Code of Conduct
TCS
TP
Tata Consultancy Services
The Tata Power Company Limited
TERPL
Trust Energy Resources Pte Limited
TMTC
Tata Management Training Centre
TPADL
Tata Power Ajmer Distribution Limited
TPCDT
Tata Power Community Development Trust
TPDDL
Tata Power Delhi Distribution Limited
TPREL
Tata Power Renewable Energy Limited
TPRMG
TP Renewable Microgrid Limited
TPSDI
Tata Power Skill Development Institute
TPSSL
Tata Power Solar Systems Limited
TPTCL
Tata Power Trading Company Limited
TSDF
Treatment, Storage and Disposal Facility
UNFCCC
United Nations Framework Convention
on Climate Change
UNDP
United Nations Development Programme
UNGC
United Nations Global Compact Principles
USD
VFD
United States Dollar
Variable Frequency Drive
WABA
World Agency on Breastfeeding Alliance
WLC
Women Literacy Centres
WREL
Walwhan Renewable Energy Limited
YTD
Y-o-Y
Year-to-date
Year on Year
487
Sustainability Accounting Standards Board
UN
United Nations
Future ready for smart choicesGlossary of Abbreviations Notes
#futureready
T H E TATA P OW E R CO M PA N Y L I M I T E D
Bombay House
24, Homi Mody Street
Mumbai - 400 001, INDIA.
Call us toll free Investor helpline for any
shareholder information at 1800-209-8484
www.tatapower.com | e-mail: tatapower@tatapower.com
CIN: L28920MH1919PLC000567
Continue reading text version or see original annual report in PDF
format above